Edp project format
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This document outlines the format for an entrepreneurship development project (EDP). It includes sections for an introduction, market analysis, manufacturing process, financial analysis, costing, means of finance, cost of production, and profit projections. The financial analysis section covers cost of raw materials, land and building, plant and machinery, fixed capital investment, working capital, capital formation, cost of production, profitability, break even point, and cash flow and balance sheet projections for 5-10 years. It provides a template for students to develop a complete business plan for a new enterprise.
Edp project format
- 1. EDP Project Format -- Dr.Syed Gous First page—Label Certificate Index 1 Introduction of the Project- The Problem of unemployment is becoming a colossal in all of the developing nations. There is enormous increase in the population. Every year India adds to her population afresh. More than this every year about 5 million people become eligible for securing jobs. The remedial measures for reducing unemployment are to lay greater emphasis on creation of opportunities for self-employment, augmentation of productivity and income levels of the working poor, shift in emphasis from creation of relief type of employment to the building up of durable productive assets in the country. In order to inculcate a desire to become entrepreneur among the students NSIC has devised a unique "Entrepreneurship Orientation Programme" (EOP). The program is specially designed for the students, who are still pursuing their studies in Schools/Colleges/Institutions and do not have any idea about Entrepreneurship. Purpose of EDP is to create awareness among the students for setting up of new Enterprise after completion of their studies instead of searching for jobs only. This program makes participants familiar about role and importance of MSMEs in Indian Economy, process of setting up of Enterprise, preparing Project Reports, Identifying marketing possibilities as well as with the issues regarding various statutory requirements such as Income Tax, VAT etc. The detailed project profile reports cover all the aspects of business, from analyzing the market, confirming availability of various necessities such as plant & machinery, raw materials to forecasting the financial requirements. The scope of the report includes assessing market potential, negotiating with collaborators, investment decision making, corporate diversification planning etc. in a very planned manner by formulating detailed manufacturing techniques and forecasting financial aspects by estimating the cost of raw material, formulating the cash flow statement, projecting the balance sheet etc. Project Introduction, Brief History of the Product, Properties, BIS (Bureau of Indian Standard) Specifications & Requirements, Uses & Applications. 2 Market Outline / Market Potential It includes study of various competitors’ products. Their product wise value, market share, & its Scope. 3 Manufacturing Process if any 4 Financial Analysis Cost of Raw Materials, Cost of Land & Building, Cost of Plant & Machineries,
- 2. EDP Project Format -- Dr.Syed Gous Fixed Capital Investment, Working Capital, Project Cost, Capital Formation, Cost of Production, Profitability Analysis, Break Even Point, Cash Flow Statement for 5 to 10 Years, Depreciation Chart, Conclusion, Projected Balance Sheet, Land Man Ratio. I Land & Building While Selecting Land & Building Entrepreneurs has to take various point into consideration. Selection of Land & Building Depends upon various aspects like Availability of Land & Building / Shop at economic rates Availability of Labors, Easy availability of Raw Material Transport facility , Electric Supply, Water facility, Most importantly scope of Market/ Consumer / Customer Ii Plant & Machinery Required Sr No Particulars Rate Quantity Total Amount ABC 1/ One 2 Total iii Raw Material Required Sr No Particulars Rate Quantity Total Amount ABC 1/ One 2 Total iv Utilities- Take Monthly Utilities & then Multiply it by 12 so that we can get yearly amount. Sr.No Particulars Amount 1 Light Bill 2 Water Bill 3 Gas 4 Fuel 5 Internet Bill 6 Telephone Bill Total Aas812= v Pre liminiary & Pre -operative Expenses While doing projects , we come across various types of expenses, before starting projects – like electric bill, water bill, & some contingencies expenses.
- 3. EDP Project Format -- Dr.Syed Gous vi Other Fixed Assets- Furniture, Table, Chairs, Cupboards,etc Vii Projected Annual Sales (PAS) For Example Consider your Projected Annual Sales = 1,00,00,000, Then your Working Capital Requirement = PAS / 4 = 1,00,00,000/ 4 = 25,00,000/- Then Net working Capital Requirement = Working Capital Requirement / 5 = 25,00,000/ 5 =5,00,000/- = This is your Margin Money Viii Project Cost Sr.No Particulars Amount 1 Land & Building 2 Plant & Machinery 3 Fixed Assets 4 Margin Money Total 100 IX Manpower Requirement While doing projects, we need to appoint employees & need to pay salary Sr No Particulars Salary/ M Quantity Total Amount 1 Admin Manager 2 Admin Staff 3 Technical Staff 4 Workers 5 Means of Finance – Sr Particulars Total 1 Promoters Contribution (40%) 40 40 2 Bank Loan( 60%) 60 60 Total 100
- 4. EDP Project Format -- Dr.Syed Gous X Cost of Production Sr No Particulars Amount 1 Raw material 2 Salary & wages 3 Utilities 4 Contingencies Total 300/- XI Profit = Sales – Cost of Production For Eg- 1000- 300 = 700 Profit After Interest & Depreciation = 700-( Interest + Depreciation) = 700( 150 + 50) = 500 Net Profit = 500 –( 30 % )s Once you got NP You need prepare 1st trail balance for 1st year Then, for next two years