Presentation on theme: "WHAT IS PROJECT REPORT? HOW TO PREPARE A PROJECT REPORT?"— Presentation transcript:
1 POINTS TO PONDER WHILE PREPARING A PROJECT REPORT SEEKING FINANCE FROM BANK WHAT IS PROJECT REPORT?HOW TO PREPARE A PROJECT REPORT?WHAT ARE ALL THE POINTS TO BE COVERED IN THE PROJECT REPORT?WHETHER ANY CONSULTANT (OR) A AUDITOR HAS TO BE CONTRACTED TO PREPARE THE PROJECT REPORT?HOW TO EXPRESS TO THE BANK MANAGER ABOUT THE PROPOSED PROJECT FOR WHICH YOU REQUIRE FINANCIAL ASSISTANCE?
2 PROJECT SELECTION OF LINE OF ACTIVITY GETTING THOROUGH KNOWLEDGE ABOUT THE PROPOSED LINE OF ACTIVITYHOW TO MANUFACTURE AND MARKET THE PRODUCT?WHETHER THE PRODUCT PROPOSED TO BE MANUFACTURED IS A INNOVATIVE ONE (OR) IMPROVED VERSION OF THE ALREADY EXISTING PRODUCT?WHETHER YOU CAN FUNCTION AS AN ANCILLARY UNIT TO A MAJOR MANUFACTURER.5 M’s – MAN , MATERIAL , MARKET , MACHINE , MONEY
3 WHO IS AN ENTREPRENEUR? OTHER QUALITIES : EVALUATION OF THE CHARACTER ,LIKE FRANKNESS, REASONABLENESS, PATIENCE, ATTITUDE TOWARDS RISK TAKING ETC.OTHER QUALITIES :INITIATIVE , DYNAMISM , LEADERSHIP AND RESOURCEFULLNESS.
4 SELECTION LOCATION – Proximity to the point of sale (or) supply. PREMISES – Own (or) Leased.MACHINERY – Manually operated (or) Computerised Numeric Control (CNC) machine.MANPOWER – Unshilled , Semi-shilled , Shilled.MATERIAL – Ferrous (or) Non – Ferrous.MARGIN MONEY – Source – Father (or) Friends & RelativesBuilding – 40 %Machinery – 25 %
5 COST OF PROJECT Land Cost Building Cost Machinery Cost Working Capital MarginAll the above Costs have to be met out from Long Term Sources.
6 WORKING CAPITALFor running a business (or) a factory Working Capital is very much required.How to mobilize Working Capital ?1) Own investment2) Borrowings Friends & RelativesBanks
7 BANK BORROWINGS Lending is an Art and not a Science Expectation of the Bank Manager will be1) Will he repay the Loan? – Character, Competence and Capital.2) Competence : can he repay the Loan?Managerial Competence.Technical CompetenceCapital – Promoter’s Stake in the business.
8 Manufacturing Cost Administrative Cost Selling Expenses Net Profit A Project can be technically feasible but it may be Financially not viable.Manufacturing CostAdministrative CostSelling ExpensesNet Profit
9 PRINCIPAL SECURITY Marketability Ascertainability of Value A good security should satisfy the principle of ‘MAST’(ie) it should possess four qualities , namelyMarketabilityAscertainability of ValueStability of Value andTransferability of ownership.
10 COLLATERAL SECURITY Personal Guarantee of a worthy Person. EM of Immovable propertyLanded PropertyBuilding PropertyHouseFactory Building.Personal Guarantee of a worthy Person.
11 FINANCIAL ASSISTANCE TERM LOAN SHORT TERM LOAN Building , Technical Know-how feesMachinery.SHORT TERM LOANPresale Credit Limits.Postsale Credit Limits.
12 SMALL AND MEDIUM ENTERPRISES SCHEMES AND OPPOTUNITIES Investment in Plant and machinery does not exceed Rs crore – It is as SSI Limit.In respect of certain specified items under hoisery, Hand Tools, Drugs and Pharmaceuticals, Stationery items and Sports Goods , this investment limit has been enhanced to Rs Crores.
13 SMALL AND MEDIUM ENTERPRISES SCHEMES AND OPPOTUNITIES A Comprehensive legislation which would enable the paradigm shift from SSI to Small and Medium enterprises is under consideration of parliament.Units with investment in Plant and Machinery in excess of SSI limit and upto Rs Crores may be treated as Medium Enterprises.
14 List of Service Sector activities covered under Medium Enterprises - Services Call CentresBPOsCybercafesDTPsHotels and RestaurantsHospitals / ClinicsAncilliary agenciesCable TV NetworkProfessionals like Doctors, Architects, Software Providers, Engineering concerns, Consultancy and Allied activities.Beauty ParloursAdvertising AgenciesIndustrial Research and Development Labs.
15 List of Service Sector activities covered under Medium Enterprises - Services Industrial Testing LabsClinical LaboratoriesIndustrial PhotographyPhotographic Labs / Processing Labs.Cold Storage Services / Milk Chilling / Milk Processing.Washing and Laundry Services / Dry Cleaning.Motor Cycle Repairing.Super Markets.Shops , Offices , Show Rooms , Training Centres of Professionals.Resorts and Travel Agents.