PREPARATION OF PROJECT REPORT PREPARE YOUR OWN REPORT

ABOUT THE PROJECT CONCEPT PRODUCT / SERVICES (what you are going to do) CAPACITY or size of activity level PROMOTERS’ DETAILS MARKET OPPORTUNITY LOCATION

PROJECT COST-1 LAND & LAND DEVELOPMENT BUILDING MACHINERY / EQUIPMENT FURNITURE / MISC. ASSETS ELECTRICALS / BOILER ETC

PROJECT COST-2 PRELIMINERY / PREOPERATIVE EXPENSES CONTINGENCIES =CAPITAL COST + MARGIN FOR WORKING CAPITAL (2ND YEAR) =PROJECT COST

MEANS OF FINANCE 1.EQUITY = PROMOTER’S FUNDS + SUBSIDY, IF ANY 2.LOANS (DEBT) 1+2=PROJECT COST DEBT EQUITY RATIO

SALES TURNOVER 1ST YR 2ND YR 3RD YR AMOUNT OF SALES / INCOME

COST OF PRODUCTION / ACTIVITY PER YEAR -1ST 2ND 3RD MATERIAL COST(RM + SPARES) OPERATING COST(POWER,WATER) MANPOWER COST(SALARIES) ADM+SELLING EXPENSES FINANCIAL COST DEPRECIATION

PROFIT PROFIT= SALES – PRODUCTION COST LESS TAXES =NET PROFIT AFTER TAX + DEPRECIATION =FUNDS AVAILABLE

WORKING CAPITAL- 1 FINANCE AVAILABLE ON RAW MATERIAL WORK IN PROGRESS FINISHED GOODS AMOUNTS TO BE RECEIVED FROM CUSTOMERS

WORKING CAPITAL -2 PER YEAR 1ST 2ND 3RD AMOUNT UNDER EACH HEAD LESS MARGIN (ie. PROMOTER’S FUNDS) = FUNDS AVAILABLE FROM BANK FOR THAT HEAD AS WORKING CAPITAL

WORKING CAPITAL -3 CALCULATION Eg AMOUNT RAW MATERIAL 15 DAYS STOCK W-I-P 1 DAY FINISHED GOODS 7 DAYS STOCK DEBTORS 45 DAYS SALES

SECURITY FOR BANK MORTGAGE HYPOTHECATION PERSONAL GUARANTEE VALUATION OF SECURITY WILL BE MORE THAN BANK EXPOSURE

BANK FINANCE AVAILABLE FOR FIXED ASSETS AS WELL AS WORKING CAPITAL DURATION TO BE DEPENDENT ON AMOUNT AVAILABLE FOR REPAYMENT OUT OF PROFITS OF PROJECT PROMOTER’S CONTRIBUTION %IN THE PROJECT: AS PER NORMS OF THE SCHEME OF BANK

MANPOWER NO. YEARLY COST UNSKILLED SKILLED

DEPRECIATION REDUCTION IN ASSET VALUATION OVER A PERIOD eg Value 100, after depreciation of 10 in a year, becomes value 90 for the next year AS PER INCOME TAX STIPULATION AMOUNT AVAILABLE FOR ADDING TO PROFIT

ALSO WRITE - UP ON MACHINERY SUPPLIERS CUSTOMERS EXISTING BANKER PERMISSIONS OBTAINED / APPLIED SOURCES OF PROMOTER’S FUNDS AGREEMENT DETAILS IF PLACE IS ON RENTAL BASIS

ALL THE BEST IF YOU KEEP THIS INFORMATION READY, YOU WILL INTERACT MORE CONFIDENTLY ABOUT YOUR PROPOSED VENTURE

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