Formulating a Comprehensive Project Report for Successful Ventures
Explore the essential steps involved in project formulation, from market surveys to project evaluation, with a focus on preparing a project report for various purposes like securing loans and government approvals. Learn about the importance of project reports, who can assist in the process, key considerations, and the significance of market surveys in reducing entrepreneurial risks.
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Presentation Transcript
WELCOME PARTICIPANTS ON MARKET SURVEY & PROJECT FORMULATION
SELECTION CONCEPTION/ PLANNING IDENTIFICATION FORMULATION PROJECT CYCLE EVALUATION OPERATION APPRAISAL M O N I T O R I N G IMPLEMENTATION
FORMULATION OF A PROJECT REPORT WHAT IS A PROJECT REPORT? WHY PROJECT REPORT? HOW TO START MAKING A PROJECT REPORT? Determine type and level of activity Estimate financial requirements/resources Prepare
WHY TO PREPARE A PROJECT REPORT To setup the enterprises in planned way To submit the proposal in government department For taking loan from banks direct or indirect. It is mandatory to submit the project report under government schemes like PMEGP, Hill policy, 4% interest subsidy schemes and Tourism Department etc
(MSME)DI WHO CAN HELP? MSME INSTITUTE STATE GOV. DEP. BANKS SIZE OF TCOs PROJECT REPORT DICs KVIB CONTENTS KVIC EDCs NGOs Pvt Consultants
factors to considered while formulating project report Decision Making Market Surveys
MARKET SURVEY IN SIMPLE WAY WE CAN SAY MARKET SURVEY IS A TOOL OR A TECHNIQUE WHICH REDUCES THE RISK OF A ENTRPREPRENEUR.
C O N T E N T S 3.MARKET POTENTIAL 2.2.PROJECT DESCRIPTION 1.GENERAL INFORMATION
7. ECONOMIC & SOCIAL VARIABLE 6. OTHER FINANCIAL ASPECTS 5. ASSESSMENT OF WORKING CAPITAL REQUIREMENTS 4. CAPITAL COST OF PROJECT & SOURCES OF FINANCE
GENERAL INFORMATION Promoter/s Qualifications, experience, family Bio-data achievements background/connections, Industry Profile Origin, Past Performance, Present Status, Future Potential Constitution Proprietorship/Partnership etc., registration DI Regn. & No. ----
MARKET SURVEYS MARKET/ BUYER BUSINESS COMPITETOR SUBSTTUTES SUPPLIER
MARKET/ BUYERS HIGH CLASS SOCIETY MEDIUM CLASS LOWER CLASS
TARGET CUSTOMER COST OF PROJECT LOCATION QUALITY AND QUANTITY PRICING OF THE PRODUCT FACILITIES
STEPS IN PREPARING PROJECT REPORT
1. NAME OF THE PROJECT 2. A GLANCE OF PROJECT 3. INTRODUCTION OF PROJECT MARKET POTENTIAL BASIS & PRESUMPTION IMPLEMENTATION SCHEDULE
TECHNICAL ASPECTS PROCESS OF MANUFACTURING SEQUENCE OF OPERATION PRODUCTION CAPACITY (Quantity & Value) POWER REQUIREMENT POLLUTION CONTROL
FINANCIAL ASPECTS THERE ARE TWO TYPES OF CAPITAL REQUIRED IN A BUSINESS. 1. FIXED CAPITAL 2. WORKING CAPITAL
FIXED CAPITAL LAND & BUILDING MACHINERY AND EQUIPMENTS FURNITURE AND FIXTURES PRELIMINARY EXPANSES & PRE-OPERATIVE
WORKING CAPITAL RAW MATERIAL SALARY &WAGES UTILITY MISC. OR OTHER EXPENSES
Total Cost of the Project Fixed Capital + Working Capital for 2 Month
MEANS OF FINANCE Bank (90%) Own Contribution (10%)
ASSUMED PROFIT ANALAYSIS PERYEAR Assumed total Expenditure per year Assumed total Sales Revenue Generated per year
PROFIT PER MONTH PROFIT PER YEAR / 12
ANNEXURE- DEPERICIATION SCHEDULE @ 20% PER ANNUM ITEM/YEAR 01 02 03 04 05 OPENING BALANCE 1,00,000.00 80,000.00 64,000.00 51,200.00 40,960.00 DEPRECIATIO N 20,000.00 16,000.00 12,800.00 10,240.00 8192.00 CLOSING BALANCE 80,000.00 64,000.00 51,200.00 40,960.00 32,768.00
ANNEXURE:- REPAYMENT SHEDULE @ 10% PER ANNUM ITEM/YEAR 01 02 03 04 05 OPENING BALANCE 1,00,000.00 80,000.00 60,000.00 40,000.00 20,000.00 REPAYMENT PRINCIPAL 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 INTEREST 10,000.00 8,000.00 6,000.00 4,000.00 2,000.00 CLOSING BALANCE 80,000.00 60,000.00 40,000.00 20,000.00 -
BREAK EVEN POINT (BASED ON FIRST YEAR OF OPERATION) FIXED COST: 1. Interest on loan : 38,077.50 2. Depreciation : 14,050.00 3. Man power expenses (40%) : 67,200.00 4. Operating expenses (40%) : 4,70,880.00 TOTAL : 5,90,207.50 Fixed cost x 100 BEP = ------------------------------------- Fixed cost + Net profit 5,90,207.50 x 100 = ------------------------------------- 5,90,207.50 + 1,22,675.50 = 82.79%
PERCENTAGE OF PROFIT RETURN ON INVESTMENT (1ST YEAR) Percentage of profit on investment Profit x 100 1,22,675.50 x 100 = ------------------------ = -------------------------- Investment 5,07,700.00 = 24.16%
RETURN ON SALES (1ST YEAR) Percentage of profit on sales Profit x 100 1,22,675.50 x 100 = -------------------------- = ----------------------- Sales 16,00,000.00 = 7.66%
