PROJECT REPORT/FEASIBILITY REPORT

 

• PROJECT ( FEASIBILITY )
   REPORT
  PROJECT MANAGEMENT
  ENTREPRENEURSHIP
  
  
• DR SHASHI AGGARWAL
  
  
• MEANING OF PROJECT REPORT

1. PROJECT REPORT IS A DOCUMENTS WHICH PROVIDE DETAILS ON THE OVER ALL PICTURE OF THE PROPOSED BUSINESS
2. ALSO KNOWN AS FEASIBILITY REPORT
3. IS PREPARED TO ASCERTAIN THE PROSPECTS OF THE PROPOSED ACTIVITY
4. IT IS PREPARED TO PRESENT IN-DEPTH TECHNO COMMERCIAL ANALYSIS CARRIED OUT ON THE PROJECT IDEA FOR CONSIDERATION OF THE FINANCIAL INSTITUTIONS AND OTHER AUTHORITIES EMPOWERED TO TAKE THE INVESTMENT DECISIONS.
5. PROJECT REPORT IS PREPARED BY AN EXPERT AFTER DETAILED STUDY AND ANALYSIS OF THE VARIOUS ASPECTS OF PROJECT
6. GIVES COMPLETE ANALYSIS OF THE INPUTS AND OUTPUTS OF THE PROJECT
7. ENABLES THE ENTREPRENEUR TO UNDERSTAND AT THE INITIAL STAGE WHETHER THE PROJECT IS SOUND ON TECHNICAL,COMMERCIAL AND FINANCIAL AND ECONOMIC PARAMETERS
8. PARTIES INTERESTED IN PROJECT REPORT
9. FINANCIAL INSTITUTION AND COMMERCIAL BANKERS ---INTERESTED PARTIES
10. PROJECT REPORT IS SUBMITTED TO THEM FOR GETTING LOANS
11. REPORTS IS PREPARED FROM CONSULTANT

• SCOPE OF PROJECT REPORT

1. ECONOMIC ASPECT
2. TECHNOLOGY ASPECT
3. FINANCIAL ASPECT
4. PRODUCTION ASPECT
5. MANAGERIAL ASPECT

• SCOPE
• ECONOMIC ASPECT : SHOULD BE ABLE TO PRESENT ECONOMIC JUSTIFICATION FOR INVESTMENT AND PROVIDE MARKET ANALYSIS HIGHLIGHTING :

1. HOW BIG IS THE PRESENT MARKET ?
2. HOW MUCH IT IS LIKELY TO GROW?
3. HOW MUCH OF  THE FUTURE MARKET THE PROPOSED PROJECT CAN CAPTURE AFTER ALLOWING A MARGIN FOR FUTURE ENTRANTS.

·         TECHNICAL ASPECT : DETAILS ABOUT THE TECHNOLOGY REQUIRED,EQUIPMENT AND MACHINERY REQUIRED AND SOURCES OF AVAILABILITY

• PRODUCTION ASPECTS : SHOULD CONTAIN DESCRIPTION OF THE PRODUCT SELECTED FOR MANUFACTURE. DETAILS ABOUT DESIGN OF THE PRODUCT
• MANAGERIAL ASPECT : CONTAIN QUALIFICATION AND EXPERIENCE OF THE PERSON TO PUT ON THE MANAGEMENT
• IMPORTANCE OF A PROJECT REPORT

1. HIGHLIGHT PRACTICABILITY OF A PROJECT IN TERMS OF DIFFERENT FACTORS LIKE ECONOMY,FINANCE,TECHNOLOGY AND SOCIAL DESIRABILITY
2. NEEDED BY THE ENTREPRENEUR FOR CARRYING OUT EXPANSION OR STARTING A NEW PRODUCTION LINE
3. HELPFUL IN THE DETERMINATION OF PROFITABILITY  AND MINIMIZATION OF RISK

• PROJECT REPORT

1. DETAILED INFORMATION ABOUT LAND AND BUILDING REQUIRED
2. MANUFACTURING CAPACITY PER ANNAM
3. MANUFACTURING PROCESS
4. MACHINERY AND EQUIPMENT ALONG WITH THEIR PRICES AND SPECIFICATION
5. REQUIREMENTS OF POWER AND WATER
6. REQUIREMENTS OF RAW MATERIALS
7. MANPOWER REQUIREMENTS
8. DEMAND STUDY
9. COST OF THE PROJECT
10. FINANCIAL ANALYSIS
11. ECONOMIC VIABILITY OF THE PROJECT

 

• CONTENTS OF A PROJECT REPORT

1. GENERAL INFORMATION
2. EXECUTIVE SUMMARY
3. ORGANIZATION SUMMARY
4. PROJECT DESCRIPTION
5. MARKETING PLAN
6.  CAPITAL STRUCTURE AND OPERATING COST
7. MANAGEMENT PLAN
8. FINANCIAL ASPECTS
9. TECHNICAL ASPECTS
10. PROJECT IMPLEMENTATION
11. SOCIAL RESPONSIBILITY

• GENERAL INFORMATION

1. DETAILS OF THE INDUSTRY TO WHICH IT BELONGS
2. INFORMATION ABOUT THE PAST EXPERIENCE OF PROMOTERS
3. RISK AND PROSPECTS ABOUT THE INDUSTRY
4. REASONS FOR STARTING THE BUSINESS AND OBJECTIVES
5. IF MANUFACTURING UNIT,TOTAL DEMAND AT LOCAL,NATIONAL AND GLOBAL LEVEL

• EXECUTIVE SUMMARY

1. OBJECTIVES OF THE BUSINESS
2. BRIEF HIGHLIGHTING METHODS THROUGH WHICH IT WILL ACHIEVE THE OBJECTIVES AND OVER ALL PICTURE OF THE BUSINESS
3. ASSUMPTIONS AND RISKS

• ORGANIZATION SUMMARY

1. ORGANIZATION STRUCTURE
2. FORM OF OWNERSHIP
3. BIO DATA ABOUT PROMOTERS INCLUDING FINANCIAL SOUNDNESS,TECHNICAL QUALIFICATION IF ANY,EXPERIENCE ,AGE AND ADDRESS

• PROJECT DESCRIPTION

1. LOCATION OF THE SITE
2. RAW MATERIAL REQUIREMENTS
3. TARGET OF PRODUCTION
4. POWER REQUIREMENTS
5. FUEL AND WATER REQUIREMENTS
6. MANPOWER REQUIREMENTS
7. TECHNOLOGY
8. PROJECTED PRODUCTION,VOLUME
9. POLLUTION TREATMENT PLANTS REQUIRED

• MARKETING PLAN
• DEMAND : COVERING USES OF THE PROPOSED PRODUCT TO BE MANUFACTURED,THE PROSPECTIVE CUSTOMERS,PRESENT CONSUMPTION,EXPECTED CONSUMPTION IN THE FUTURE
• ALSO MENTION THE STRATEGIES TO CAPTURE THE MARKET .
• ALSO COVERING ASSESSMENT OF EXISTING CAPACITY,PRESENT LEVEL OF PRODUCTION,CAPACITY UTILIZATION,EXTENT OF IMPORT AND PROJECTED SUPPLY CONSIDERATIONS PROJECT UNDER CONSIDERATION
• DISTRIBUTION : COVERING CHANNELS OF DISTRIBUTION,MODES OF TRANSPORT,MODES OF PACKING AND COST OF DISTRIBUTION,GOVERNMENT POLICIES
• PRICES : PRICE TRENDS,COVERING BOTH NATIONAL AND INTERNATIONAL PRICE TRENDS.PREVAILING DUTIES AND TAXES AND ANY CONTROL IMPOSED BY THE GOVERNMENT
• CAPITAL STRUCTURE AND OPERATING COST
• DESCRIBE THE TOTAL CAPITAL REQUIREMENTS
• CAPITAL COST : ALL THE COSTS INCURRED IN THE PROJECT BEFORE IT BECOMES READY TO START COMMERCIAL PRODUCTION WILL BE TREATED AS CAPITAL COST. IT WILL INCLUDE NOT ONLY EXPENDITURE ON ASSETS SUCH AS LAND,PLANT AND MACHINERY ETC AND ALSO SOFTWARE COST SUCH AS DESIGN ENGINEERING,LI CENSOR FEES,MANAGEMENT AND PREOPERATIVE EXPENSES
• WORKING CAPITAL : THE FUNDS REQUIRED FOR MAINTAINING INVENTORIES IN THE FORM OF RAW MATERIALS,OPERATING SUPPLIES,INTERMEDIATE PRODUCTS,FINISHED PRODUCTS AND MEETING MISCELLANEOUS CASH REQUIREMENTS
• OPERATING COSTS :-RECURRING COSTS FOR DOING PRODUCTION,MAINTENANCE AND MARKETING, WILL ALSO INCLUDE INTEREST ON LOAN
• SOURCE OF FINANCING : MUST INDICATE THE EXPECTED SOURCES AND TERMS OF EQUITY AND DEBT FINANCING

 

• MANAGEMENT PLANS

1. BUSINESS EXPERIENCE OF THE PROMOTERS OF THE BUSINESS
2. DETAILED INFORMATION ABOUT THE MANAGEMENT TEAMS
3. DUTIES AND RESPONSIBILITIES OF TEAM MEMBERS
4. CURRENT MANPOWER REQUIREMENTS
5. RECRUITMENT AND SELECTION PLANS

 

• FINANCIAL PLANS

1. PROJECTED PROFIT AND LOSS ACCOUNT
2. BALANCE SHEETS
3.  WILL SHOW THE ESTIMATED SALS REVENUES,COST OF PRODUCTION,GROSS PROFIT AND NET PROFIT
4. PROJECTED CASH FLOW STATEMENTS
5. PERIOD THREE TO FIVE YEARS
6. THE INCOME STATEMTNS AND CASH FLOW PROJECTIONS SHOULD INCLUDE THREE YEAR SUMMARY,DETAIL BY MONTH FOR THE FIRST YEAR AND BY THE QUARTER FOR THE SECOND AND THIRD YEAR
7. BREAKPOINT AND RATE OF RETURN ON INVESTMENT

• TECHNICAL ASPECTS

1. INFORMATION ABOUT THE TECHNOLOGY AND TECHNICAL ASPECTS
2. PRODUCTION PATTERN
3. PROCESS SELECTION :
4. TECHNOLOGY SELECTED
5. CAPACITY OF THE MACHINERY
6. POLLUTION CONTROL PLANTS

• PROJECT IMPLEMENTATION

1. TIME TABLE FOR THE PROJECT
2. INDICATE THE TIME WITH IN THE ACTIVITIES INVOLVED IN ESTABLISHING THE ENTERPRISE CAN BE COMPLETED

 

• SOCIAL RESPONSIBILITY
• CONTRIBUTION TO THE SOCIETY IN THE FORM :

1. EMPLOYMENT
2. INCOME ,EXPORTS
3. INFRASTURCTURE

• PROJECT REPORT FOR NEW BUSINESS FORMAT

Ø  BACKGROUND OF THE BUSINESS

Ø  CUSTOMER’S PROFILE

Ø  LONG AND SHORT TERM CORPORATE OBJECTIVES

Ø  MARKET ANALYSIS : BRIEF DISCUSSION ON THE TYPE OF MARKET.CHIEF INFLUENCES,PLAYERS ETC

Ø  MARKET DESCRIPTION

a)    REASONS FOR STARTING BUSINESS IN A PARTICULAR MARKET

b)    TARGET CLIENTS

c)    ADVANATAGE OS THE SERVICES OFFERED BY THE NEW BUSINESS

d)    MARKET CONSUMPTION PATTERN

e)    PAST AND EXISTING SUPPY LOCATION

f)     PROJECT REPORT FOR NEW BUSINESS FORMAT

g)    PRODUCTION PROSPECTS AND LIMITATION

h)    EXPORT AND IMPORT

i)      PRICE STRUCTURE

j)      FELXIBILITY OF DEMAND

k)    CLIENT BEHAVIOUR ,PURPOSE INTENTIONS,IMPETUS,APPROACHES ,INCLINATIONS AND NEEDS

l)      STUDY NETWORK AND MARKETING RULES FORMULATED BY THE GOVERNMENT

m)   GOVERNMENT AND TECHNICAL LIMITATION IMPOSSED ON THE PROMOTION OF THE PRODUCT

 

• FINANCIAL ASSESSMENT :

1. INVESTMENT EXPENDITURE AND VALUE OF THE ENTIRE PROJECT
2. METHODS OF INVESTMENT
3. CASH FLOWS OF THE PROJECT
4. ESTIMATE OF SOURCES OF FINANCING

• MARKET ASSESSMENT :

1. PRODUCT
2. PRICE
3. PLACE
4. PROMOTION

• OPERATIONAL PLAN:

1. BUSINESS MODELS
2. PRODUCTION OF GOODS AND SERVICES

·         FINANCIAL PLAN

1.     MANAGEMENT STRUCTURE

2.     BUSINESS STRUCTURE

3.     SWOT ANALYSIS

·         APPENDICES :

1. BREAK EVEN ASSESSMENT
2. PROFIT AND LOSS
3. FUND FLOW SUMMARY

• PROJECT REPORT FORMAT FOR BANKING LOANS

1. INTRODUCTORY PAGE
2. SUMMARY OF THE PAGE
3. DETAILS ABOUT THE PROMOTERS AND THEIR EDUCATIONAL QUALIFICATION AND EXPERIENCE
4. CURRENT STATUS OF THE BUSINESS,ITS PRODUCT AND SERVICE TARGET AND ACTIVITIES
5. EMPLOYEES DETAILS ABOUT  TOP MANAGEMENT,THEIR EDUCATIONAL QUALIFICATION,WORK EXPERIENCE
6. INFRASTRUCTURE FACILITIES TOOLS DEPLOYED.OPERATIONAL PREMISES AND MACHINERY
7. CUSTOMERS DETAILS ABOUT PRESENT AND PROSPECTIVE
8. REGIONAL OPERATIONS
9. MEANS OF FINANCING
10. BALANCE SHEET
11. PROFIT AND LOSS ACCOUNT
12. FUND FLOW STATEMENTS
13. CHIEF RATIOS
14. BREAK EVEN POINTS
15. CONCLUSIONS

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