Preparation of Project Report
- 1. PREPARATION OF PROJECT REPORT Oct 11, 2009 CA. SUNNY SABHARWAL
- 2. What is a Project Report First introduction to the Project Even before meeting the Promoters Deemed to contain all relevant & updated information Matter or Format? But format is still indispensible Long or Short? Time has value Get a pro Did I hear Chartered Accountants? Hisar Branch Preparation of Project Report
- 3. Purpose of Project Report Funding from LENDERS Funding from INVESTORS What’s the difference!!! Hisar Branch Preparation of Project Report
- 4. General Contents of a Project Report Background & Business Description Market Study The Project Project Implementation Project Financials A project will rarely score a 100 in all aspects. Right job is to identify the strong point and highlight it the most in the Project Report PROJECT REPORT Background Market Study The Project Project Implementation Project Financials
- 5. Project Report Hisar Branch Preparation of Project Report Background & Business Description Market Study The Project Project Implementation Project Financials
- 6. Background and business description Executive Summary* Promoters : Promoters and their background, professional qualifications, experience, etc. Existing Status of Business : existing activity, product line Management : Directors, Managers – their professional background and expertise, arrangements for Human Resource Development, etc. Infrastructure facilities : Property, Plant & Equipment Clientele : Present and prospective clients Strategic tie ups: Technical and/or Financial What does a lender/investor see Promoters : Sound experience with proven capabilities to expand and innovate Existing Status of Business : Idea of Project team should be clear about where they are and what they want to achieve Management : Strong, experienced team with qualified personnel Infrastructure facilities : Quality (latest?) and useful life of PPE Clientele : Clients with visibility (depict quality), government contracts (ensure revenues & clean status) preferred Strategic tie ups: Technical and/or Financial Hisar Branch Preparation of Project Report
- 7. Project Report Hisar Branch Preparation of Project Report Background & Business Description Market Study The Project Project Implementation Project Financials
- 8. Market Analysis What is the business : Product or Service Industry – IT, Realty, Power, Automobiles, FMCG, etc. B2B and/or B2C Govt. regulations Market size, competition Sources of Information – Dedicated study by professional firms (like RE) Industry media Ministry’s /Department’s website Hisar Branch Preparation of Project Report
- 9. Project Report Hisar Branch Preparation of Project Report Background & Business Description Market Study The Project Project Implementation Project Financials
- 10. What’s the vision of entrepreneur? What will he do and for how long Where is the value being added : USP? Is it location, target customer base, price strategy or something else How the competition is being evaluated? Direct and indirect About the Project for Dish DTV competition is not only DTH, but cable operators too Hisar Branch Preparation of Project Report
- 11. Project Report Hisar Branch Preparation of Project Report Background & Business Description Market Study The Project Project Implementation Project Financials
- 12. Project Implementation Project SWOT analysis and strategy Why here and not in Introduction Section Better understanding at this stage Project core team & resources Role and responsibilities of each should be clear Schedule of Activities With timelines Possible hiccups A GANTT CHART is useful Hisar Branch Preparation of Project Report
- 13. Project Report Hisar Branch Preparation of Project Report Background & Business Description Market Study The Project Project Implementation Project Financials
- 14. Project Financials … 1 Project Costs To be included – Cost of land and land development Cost of Building & Structures Cost of Plant & Machinery Permanent Working Capital Preliminary Expenses – legal, traveling, brokerage Challenge is to estimate these reasonably But how – Discussions with Client & Others (industry experience) Industry / Company reports Hisar Branch Preparation of Project Report
- 15. Project Financials … 2 Project Revenues Find innovative Means Better be realistic – market knows everything Funding Matching of Cash Flows principle Timing of Inflows and Outflows to coincide Lease model or capex model Remember to maintain the balance A well prepared FINANCIAL MODEL brings more clarity and is preferred by lenders/investors Hisar Branch Preparation of Project Report
- 16. Project Financial … 3 Some numbers lenders/investors are interested in – Project Cost Break-even point/time DSCR Cash Flow Analysis – NPV; IRR Profitability Index ROE Debt-Equity Ratio Hisar Branch Preparation of Project Report
- 17. Projects???
- 18. Checklist for preparation of a Project Report Clear and complete understanding of project Reliable sources of information Precise but presentable data Command over numbers Credible client and credible investor Confidentiality Hisar Branch Preparation of Project Report
- 19. THANK YOU CA. Sunny Sabharwal +91 99586 77766 sabharwal.sunny@ yahoo.com
Editor's Notes
- #9: http://www.sezindia.nic.in/