1. ART OF PREPARATION AND PRESENTATION OF PROJECT FEASIBILITY REPORTS

2. 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

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

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

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

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

7. 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

8. ‘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

9. 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)

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

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

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

13. 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

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

15. 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

16. 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.

17. 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)

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

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

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

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

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

23. 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

24. 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

25. 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

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

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

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

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

30. 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

31. 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

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

33. Thank you!