ART OF PREPARATION AND PRESENTATION OF PROJECT FEASIBILITY REPORTS

PROJECT FEASIBILITY REPORT GENERALLY A TECHNO COMMERCIAL DOCUMENT IN A STANDARD FORMAT A LARGE & VARIED COVERAGE LOT OF SUPPORT DATA & DOCUMENTS ALL FUNCTIONAL AREAS OF BUSINESS VENTURES

MAJOR ITEMS COVERED IN A REPORT PRODUCT DESCRIPTION, SPECIFICATION, RANGE, ENDUSE DOMESTIC AND EXPORT MARKET PROSPECTS PROPOSED MARKETING ARRANGEMENTS

PROMOTERS & MANAGEMENT TECHNICAL ASPECTS – PROCESS, EQUIPMENT, QUALITY, MATERIALS, UTILITIES, INFRASTRUCTURE & MANPOWER PRODUCTION CAPACITY, PRODUCT MIX & OPERATIONAL PARAMETERS

PROJECT COST ESTIMATION SOURCES OF FINANCE FUTURE FINANCIAL PERFORMANCE FINANCIAL INDICATORS – IRR, BEP & DSCR SENSITIVITY ANALYSIS

PROJECT REPORT PREPARATION ACCOUNTANT’S APPRAOCH MAINLY FINANCIAL AND ECONOMICS ORIENTED HIGHLY ANALYTICAL IN NATURE TECHNIQUES ORIENTED BASED ON PARAMETERS

CONSULTANT’S APPROACH INDEPENDENT DATA COLLECTION AND EVALUATION OF MARKET PROSPECTS DETAILED EVALUATION OF TECHNICAL ASPECTS APPRAISAL ON PROMOTERS & MANAGEMENT CAPABILITIES TECHNO COMMERCIAL APPROACH IN STANDARD PATTERN

‘ART’ COMES INTO PICTURE, WHEN THE REPORT IS PREPARED & PRESENTED WITH SPECIFIC EMPHASIS ON PURPOSE END USER NATURE OF SCHEME THIS IS IMPORTANT TO ACHIEVE END RESULTS TO SAVE TIME & EFFORTS

PURPOSE END USE MAY BE PRELIMINARY PRE FEASIBILITY STUDY FOR MANAGEMENT COMPARISON OF TWO OR MORE PROJECTS PRELIMINARY CLEARANCE FROM AGENCIES (FIPB/POLLUTION CONTROL BOARD/SIA)

DETAILED FUND MOBILISATION BY MANAGEMENT TO FINALISE TECHNOLOGY TIE-UP ARRANGEMENTS APPOINTMENT OF DETAILED ENGINEERING CONSULTANTS TO FINALISE MARKET TIE-UP ARRANGEMENTS

END USER USERS MAY BE TOP MANAGEMENT FIs / BANKS GOVERNMENT AGENCIES SHARE HOLDERS/MF/INVESTING PUBLIC PROJECT IMPLEMENTATION AGENCIES

NATURE OF SCHEME NEW PROJECT BY A NEW PROMOTER/COMPANY NEW PROJECT (DIVERSIFICATION) FOR AN EXISTING COMPANY MODERNISATION-CUM-EXPANSION PROJECT EXPANSION PROJECT

PROJECT REPORT FOR TOP MANAGEMENT EMPHASIS TO BE ON SPECIAL FEATURES OF THE PRODUCT CRITICAL INPUT FACTORS (RM, POWER, ETC.) CONTRIBUTION ANALYSIS WITH EXISTING PRODUCTS/THOSE OF OTHER COMPANIES KNOWHOW AVAILABILITY & ITS RELIABILITY

INTERDIVISION BENEFITS & TRANSFER PRICING EXPECTED MARKET SUCCESS FACTORS PROJECT SIZE & PROMOTER’S CONTRIBUTION SCOPE FOR ENHANCING CAPACITY LEVEL OF AUTOMATION & MANPOWER NEEDS

INNOVATIVE SOURCES OF FINANCE (SHARE PREMIUM / SUBSIDY / GRANT / DEFERRALS) PROFITABILITY INDICATORS - IRR ON PROJECT - IRR ON EQUITY - BEP - PAYBACK PERIOD RISK FACTORS AND SENSITIVITY ANALYSIS

PROJECT REPORT FOR FI/BANKS (TO AVAIL TERM LOAN/WORKING CAPITAL LOAN) EMPHASIS TO BE ON SPECIAL FEATURES OF THE PROJECT (PROCESS, PROJECT COST/MT, INNOVATIVE PRODUCT, TECHNICAL/ FINANCIAL TIE UP ETC.) PROMOTERS – BACKGROUND, SUCCESS IN PROJECTS, FINANCIAL SOUNDNESS, ETC.

MARKETING ARRANGEMENTS – BUYBACK FORMULA (IF ANY) PRESENT STATUS – (LAND ALLOTTED, PROJECT TEAM, KNOWHOW TIE-UP ETC.) REASONABLENESS OF TECHNICAL KNOWHOW FEES - BASIS STRENGTHS & SUCCESS FACTORS DEBT EQUITY RATIO (FOR PROJECT & COMPANY AS A WHOLE)

PROMOTERS’ CONTRIBUTION – SOURCES PROFITABILITY INDICATORS – DSCR, IRR, BEP PROFITABILITY RATIOS (INDUSTRY COMPARISONS) CRITICAL FACTORS & SENSITIVITY ANALYSIS ADDITIONAL/COLLATERAL SECURITY OFFERED FOR TL/WC LOANS

PROJECT REPORT FOR GOVERNMENT AGENCIES EMPLOYMENT POTENTIAL SUPPORT TO SMALL BUSINESSES/SUBCONTRACTORS CONTRIBUTION TO GOVT. REVENUES (EXCISE DUTY, ST, ETC.)

AREA DEVELOPMENT (SUGAR, CEMENT, ETC.) EXPORT POTENTIAL/IMPORT SUBSTITUTION POLLUTION CONTROL MEASURES ECONOMIC BENEFITS OUT OF THE PROJECT

PROJECT REPORT FOR SHAREHOLDERS/INVESTING PUBLIC/MF EMPHASIS ON PROFITS/INCREMENTAL PROFITS RETURN ON EQUITY DIVIDEND PROSPECTS

TAX BENEFITS TO SHAREHOLDERS/COMPANY GROWTH POTENTIAL IN THE PRODUCT LINE PRESENT STATUS OF THE PROJECT BUSINESS RISKS

PROJECT REPORTS FOR IMPLEMENTATION AGENCIES (DETAILED ENGG. FIRMS, ERECTION ENGINEERS, ETC.) EMPHASIS ON PROJECT LOCATION & FACTORY SITE SITE CONDITIONS – SOIL TEST/WATER TEST TECHNICAL SPECIFICATION FOR BUILDINGS & CIVIL WORKS

PLANT & MACHINERY –SPECIFICATIONS, MAKE, MODELS, IMPORTED/INDIGENOUS, LOCAL FABRICATION NEEDS SUBCONTRACT FACILITIES AVAILABILITY UTILITIES & INFRASTRUCTURE PROJECT IMPLEMENTATION SCHEDULE – STAGES FOR FUND ARRANGEMENTS/LOAN DRAWALS SPECIFIC GOVERNMENT CLEARANCES/APPROVALS

PROJECT REPORTS FOR MODERNISATION CUM EXPANSION EMPHASIS TO BE ON COMPARISON OF EXISTING PARAMETERS WITH NEW PARAMETERS PLANT CAPACITY PLANT PRODUCTIVITY LEVELS INPUT/OUTPUT RATIO

LINE REJECTION LEVELS UTILITIES CONSUMED LEVEL OF AUTOMOTION MANPOWER INCREASE IN PRODUCT RANGE

SHOP ENVIRONMENT REDUCTION IN POLLUTION SAFETY NORMS REPAIRS & MAINTENANCE EXPENSES PLANT DOWNTIME SET UP TIME

TO HIGHLIGHT INCREASE IN INTEREST & DEPRECIATION COST SAVINGS IN COST COST BENEFIT ANALYSS IMPROVEMENT IN PRODUCT QUALITY/RANGE & MARKET SCOPE PROMOTER’S CONTRIBUTION

ART OF PRESENTATION PRESENTATION TO BE IN TERMS OF CONTENT – TABLES, CHARTS, GRAPHS & SOURCES OF DATA SIZE HIGHLIGHTS CRITICAL AREAS SELECTIVE INCLUSIONS STAGEWISE PRESENTATION

GENERAL PRESENTATION FOR FI/BANKS MAIN REPORT AS PER FI NORMS AND IN APPLICATION FORMAT WITH SUPPORT DOCUMENTS/ ADDITIONAL REPORTS SENSITIVE/CRITICAL DATA OR DOCUMENTS TO BE FURNISHED FOR INSPECTION AS AND WHEN NECESSARY

ADDITIONAL REPORTS/DOCUMENTS WITH MAIN REPORT TECHNICAL SPECIFICATIONS FOR BUILDINGS & CIVIL WORKS AND PLANT & MACHINERY COMPARATIVE QUOTATIONS (3 SETS) FOR CIVIL WORKS AND ALL MAJOR MACHINERY & EQUIPMENT MARKET SURVEY REPORT

PROJECT SITE TEST REPORTS AND PRELIMINARY CLEARANCES OBTAINED PROMOTERS’ BACKGROUND, GROUP COMPANY ARRANGEMENTS ALREADY MADE IN THE PROJECT FINANCIAL WORKINGS MODULE (IN FLOPPY)

Thank you!