PREPARA1IOA OF PRO1EC1 PREPARA1IOA OF PRO1EC1

REPOR1 REPOR1
PRESENTED BY: PRESENTED BY:
SACHINDRA MISRA, SACHINDRA MISRA,
FCA FCA
GENERAL OVERVIEW
Suitability of the Project for the Client / Promoter
W Past line / Experience of the Promoters
W Risk Analysis based on Educational / Professional / Technical Qualification of the
Client
Type of Proposed Project
W New Project
W Existing Project
W Expansion & Diversification
W Balancing / Modification
W Rehabilitation
Purpose
W Term Loan
WWorking Capital
WShare / Bond / Debt Market
Chapter- I Highlights of the Project
Name of the Unit / Company / Concern
2 Promoter Group
3 Constitution (Public Ltd / Pvt Ltd / Partnership / Proprietorship
4 Board of Directors / Partners
5 Date of Incorporation
6 Location
7 Registered &Adm ffice
8 Govt Consents
9 Capacity
a) Installed
b) Capacity Utilization Envisaged
Cost of the Project & Means of Finance
Schedule of commencement of Commercial Production
2 D S C R
3 Employment potential
4 Socio-Economic Advantage for the Area
Chapter-II Background of the Promoters
Bio Data
2 Educational Qualification (Especially Technical / Professional)
3 Past Experience & its Relevance to the Project
4 Interrelationship of Promoters
5 Financial Resources
6 Creditworthiness
7 In case of Existing Company
W Past Working Results
W Past Dealings with Bank / F
8 Details of Associate Concerns
W Introduction
W Activities
W Banking Dealing & Facilities
W Last 3 years working Results
Chapter-III Organisation & Management
Board of Directors / Partners
2 Profile of Directors / Partners
3 rganisation Chart
4 Profile of key Executives
Criteria / Reasons for Selection
W Close to Raw Material Sources / Market
W Transport
W Type of Land
W Soil Test Report
W Approach (Close to NHW / SHW / Major Roads / Rail Head)
Chapter-IV Location of the Project
Chapter-V Technical Aspects & Technology to
be used
Brief Introduction and Importance of the Project with Reasons
for Selection of Proposed Technology / Machines
2 Machine Balancing
3 Product
W Specification, its standard and other Qualitative Information
W Application
W Distinctive Features & Edge ver Competitors
4 Detailed Design, Engineering & Execution
5 Capacity
W Basis of Assessing Installed Capacity with Detailed
Calculation Indicating Critical Machine on Basis of which
Capacity Ascertained no of Working Hours & No of Days
W Reasons for particular capacity utilisation
6 Technology Adopted and Its Comparison With Alternative
Technology and Reasons for Selection
7 Technical Consultant, if any
W Write up on Consultant indicating rganizational setup,
Experience and Scope of Work etc
W Agreement With Consultant
8 In case of Foreign Collaboration:
W Write up on Collaborator indicating their Activity, Size and
Turnover
W Past Experience
W Basis of Selection
W Collaboration Agreement
W Technical Brochure, Balance Sheet, Bank Reference Etc
Chapter-V Technical Aspects & Technology to
be used Contd.
9 Power
W Requirement & its Availability
W Source
Water
W Requirement & its Availability
W Source
Compressed Air
W Requirement & its Availability
W Source
Chapter-V Technical Aspects & Technology to
be used Contd.
2 Effluent Treatment
W Type of Effluent
W Measures
3 Manpower
W Requirement, Availability, Sourcing & Recruitment
4 Raw Material
W Requirement of Various Raw Material
W Source and Availability Position Indicating National & Local
Scenario
W Basis of Cost Indicating Tax & Duty Structure
W Government Regulations if Any
W Arrangement Made for Procurement
Chapter-V Technical Aspects & Technology to
be used Contd.
Chapter-VI Manufacturing Process
Description of Process Along with Plant & Machinery Lay ut
2 Process Flow Chart & Material Flow Chart
Chapter-VII Market & Demand
Detailed Note on Demand Supply Position
W Uses of the Product and End Users
W Capacity at National & Local Level
W Price Structure of Existing Manufacture
W Tax Structure
W Performance of Existing Cos
W Demand-supply Trend of Last 5 years & Future
Projection
W Export Potential
W Information regarding Substitutes
2 Govt Regulation
3 Existing Trade Practices
4 Selling Arrangement
5 Market Survey Report, if any
Chapter-IX Cost of Project
Land
W Area & Cost
W Status & Documents
W Proper Legal Documentation
W Contour Plan & Site Development Cost
2 Building
W 1ustification for Proposed Area
W Building Layout & Plants
W Specification of Construction & 1ustification of Cost
W Details of Architect indicating their rganisational Setup, Experience and Scope of Work
W Approval of Building Plan by the Competent Authority
3 Plants & Machinery
W Detailed Quotation of Suppliers
W Comparative Statement & Reasons of Selection with Techno-economic 1ustification
W Performance Guarantee of Special Machines
Chapter-IX Cost of Project Contd.
4 Misc Fixed Assets
W Detailed Breakup of Electrical, Workshop Equipments
W Detailed Quotation of Suppliers
W Comparative Statement & Reasons of Selection with Techno-
economic 1ustification
5 Preliminary & Pre-operative Expenses
W Basis of various Expenses
6 Margin for Working Capital
W Basis of Assessment
W 1ustification for holding period
W 1ustification for Margin
7 Contingency
W Basis of Contingency Provision
Chapter-X Means of Finance
1ustification of Proposed Means of Finance
2 Proposed Shareholding Pattern
3 Steps Taken to Raise the Stipulated Means
4 Status of Regularity Clearances & Legal Compliances
5 Detail of Investible Resources of Prompters
Chapter-XI Profitability & Funds Flow
Assumption
W Capacity
W Recovery from Raw Material and Process Loss
W Basis of Consumables
W Basis of Repairs & Maintenance
W Basis of Wages & Salaries
W Basis of Power & Fuel Cost
W Basis of Administrative & Selling Expenses
W Basis of Depreciation Rates
W Basis of Interest on Working Capital and Term Loan
W Basis of Selling Price
W Basis of Income-Tax Rates
Chapter- XI Profitability & Funds Flow contd.
2 Summarised Position of Future Profitability Estimates & Comments
thereon
3 Comments on Fund Flow & Proposed Repayment Schedule
4 Comments on Balance Sheet
5 Comments on Financial Indicators
a) Commercial Viability Ratios
i Debt Service Covering Ratio-
PAT + Dep+ Int TL/TL+Int TL (Minimum5)
ii Security Margin (Net Fixed Assets - TL/Net Fixed
Assets)
iii Fixed Assets Coverage Ratio - Net Fixed Assets / STL
iv BEPAnalysis - BEP (Fixed Cost / Sales - Variable
Cost)
Cash BEP (FC-Depr / Sales - Variable
Cost)
Chapter- XI Profitability & Funds Flow contd.
v Sensitivity Analysis
W Base DSCR
W DSCR with Reduction of Sales Prices
W DSCR with Increase in Raw Material Cost
b) Efficiency Ratios
I Net Sales/ Total Tangible Assets (Times)
ii PBT/ Total Tangible Assets ()
iii perating Cost/ Income ()
iv Bank Loan for WC/Current Assets ()
v Inventory + Receivables / Net Sales (Days)
Chapter- XI Profitability & Funds Flow contd.
c) Risk Related Ratios
i Profitability
- PBT/ Sales ()
- PAT/Net Sales ()
ii Interest Coverage PBIT/Interest ( Times)
iii Return on Capital Employed (RCE) PBIT/ Total Assets
iv Current Ratio CA/CL
v Liability against Net worth ( Important for Working Capital)
TL/TNW (Times)
vi Return on Assets PBT/ Total Assets
vii Debt Equity Ratio - Important for Term Loan
Term Loan/ Promoter Contribution
Chapter- XII Implementation Schedule
Detailed Implementation Schedule Indicating each activity and its
estimated date of Completion
2 PERT Diagram
Chapter- XIII Security Coverage
Primary Security and Detailed Calculation of Security Margin
2 Personal Guarantee of Promoters With Their Net Worth
3 Collateral Security & Valuation thereof by empanelled Regd Valuer
4 ther Securities
W Escrow Mechanism
W Guarantee by Collaborator
W Third Party Guarantee
W Step in rights
Chapter- XIV SWOT Analysis
Strengths
W Strengths of the Company & Project like Project Location,
Market Share, Dealers Network, Technology, Collaboration,
Government Certifications etc
2 Weaknesses
W Weakness of the Company like ld Technology, Product
bselence Power Shortages, Raw Material Problem, Labour
Problem, Competition, Statutory Clearances etc
2 A Mitigating Factors to overcome / minimize each factor
Chapter- XIV SWOT Analysis Contd.
3 pportunities
W pportunities Available to the Company like Industry
Growth, Future Expansion, Backwork or Forward
integration, Competitiveness, Technology Upgradtion etc
4 Threats
W Threats to the company like chances of product bsolesance,
due to Government Policies, due to Completion with Major
Players etc
4 A Mitigating Factors to Minimize threats
Annexures of Project Cost & Profitability
Details of cost of Project & Means of Finance
2 Details of Cost of Land & Site Development
3 Details of Building & Civil Construction
4 Details of of Plant & Machinery
5 Details of Misc Fixed Assets
6 Details of Preliminary & Preoperative Expenses
7 Details of Working Capital and its Margin
8 Details of Capacity Calculation & Sales Realisation
9 Details of Salary & Wages
Details of of Power & Fuel
Annexures of Project Cost & Profitability Contd..
Projected Profitability Statement
2 Projected Cash Flow
3 Projected Balanced Sheet
4 Details of Repayment Schedule & Interest on Term Loan
5 Deprecation Calculation : SLM & WDV Method
6 Calculation of Income Tax Payable
7 Calculation of DSCR & Sensitivity Analysis
8 ey Financial Indicators
Thank You