Project Feasibility Report Priya
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Transcript of Project Feasibility Report Priya
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PROJECT
FEASIBILITYREPORT
PRESENTED BY
PRIYA
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Project feasibility analysis
1st step - establishment of objectives to be
attained
2nd
step in-depth study 3rd step- analysis Include market analysis,
technical analysis, financial analysis & social
profitability analysis.
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Market analysis
A brief description of market
An analysis of past & present demands
An analysis of past and present supply,broken down as to source as well as
information which will assist in determining
the competitive position of the product such
as selling prices, quality & marketing
practices of the competitors.
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Technical analysis
A description of the product
A description of selected manufacturing
process A determination of plant size & production
schedule
Selection of machinery & equipment An identification of plants location & an
assessment of its desirability
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CONT.
A design of plant lay-out & an estimate ofcost of erection of proposed buildings & landimprovements.
A study of availability of raw materials &liabilities & utilities
An estimate of labor requirements
A determination of type, quantity & method ofwaste to be disposed off
A estimate of production cost of product
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Financial analysis
Projects that involve new companies ,statements of total project cost, initial capitalrequirements & cash flows relative to project
time-table; All projects, supporting schedules for
financial projection, stating assumption madeas to collection period of sales, inventorylevels, payment period of purchases &expenses, and element of production cost,selling, admin. & financial expenses.
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CONT.
All projects, prepare a financial analysis
showing returns on investments, returns on
equity, break-even volume & price analysis. All projects, if necessary, a sensitivity
analysis to identify items which have a
substantial impact on profitability or possible
a risk analysis.
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Investment proposal
General information on product, company
history, nature of industry & reputation &
qualification of existing or proposedmanagement.
A description of period, which consists of
extracts from economic feasibility studies &
includes information on such items asmarket, production, selected manufacturing
methods & a financial statement
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CONT
Miscellaneous information, such as steps
taken for implementation of project &
qualifications of technical partners envisagedor selected.
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FEASIBILITY REPORT
Before starting a small-scale industry, one shouldconsult director of industries & SISI located inones state.
SISI guides entrepreneurs as to type of industry tostart, where to start & how to start it.
Help them to select various items of manufacture,
various financial institutions with a view tosecuring financial assistance, technical help inselection of proper raw materials& type ofmachine.
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SELECTIONOFSITE
Nearness to source of raw materials.
Nearness to market.
Availability of land at cheap rates.
Availability of skilled labor &cost of labor inarea.
Availability of transport &communication
facilities. Availability of power, water, waste disposal &
other essential services.
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CONT.
Incentives & concessions available in
different states.
General business climate in the region. Climate &environmental factors.
Availability of factory sheds in industrial
estates.
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Legal considerations
Registration with director
of industries- at 2 stagesProvisional registration
Permanent registration
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Provisional registration
Application in prescribed form duly filled
&signed by proprietor, partners, directors as
case may be Passport size photos of proprietor, partners,
directors as case may be
Photocopy of ration card of proprietor,
partners, directors who have signed theapplication
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CONT.
Photocopy of partnership deed if unit is a
partnership firm
In case applying unit is a company,photocopy of memorandum & articles of
association and the certificate of
incorporation.
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Provisional registration
Will enable the small scale unit to: Apply for a shed in an industrial
estate/developed site in an industrial area&material for construction of a shed as thecase may be
Apply to the corporation/ municipal/
panchayat /other local authorities forpermission to construct shed to establish aunit.
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CONT.
Apply for power & water connections
Apply for financial assistance toSFC/nationalized banks /other financialinstitutions on the basis of a project report asmay be required by them
Apply to NSIC /SSIC/ other institutions for
procuring machinery on hire purchase basis Make firm arrangements for working capital
resources with banks & other institutions
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CONT.
Obtain sales tax, excise duties, etc.
registrations wherever required
Take other steps that may be necessary toestablish the industrial unit.
Apply for import of raw materials
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MUNICIPAL LICENSE
In DELHI it is necessary to obtain from MCD.
Registration with central &state sales tax
department is necessary for which contact toconcerned dept.
If small scale unit comes within purview of
factories act, registration with inspector of
factories will also required. Otherwise unithas to be registered under shops
&establishment Act, wherever applicable.
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PERMANENT
REGISTRATION
Rent receipt orNOC from landlord or
photocopy of house tax receipt in the name of
small scale unit Photocopy of municipal license, wherever
applicable
If power is not in name of unit than NOC from
connection holder
Photocopy of sale bill of each item
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CONT
Photocopy of purchase invoice of machinery
Photocopy of partnership deed if unit is apartnership
Photocopy ofMOA & certificate ofincorporation, if unit is a company
Photocopy of approved scheme & project
report if unit is assembling/ manufacturing An affidavit in prescribed Performa duly
attested by notary public
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Cancellation of registration
Unit remains closed continuously for more
than 1 yr.
Unit fails /refuses /avoids to give full & trueinformation required by registering authority
from time to time
Unit has misutilized raw materials allocated to
it
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Registration with GS&D /NSIC
Copies of balance sheet & profit & loss
account for last 3 yrs
Income tax clearance certificate Ownership document in respect of firms
factory and machinery
Certificate in Form A in case of a partnership
concern
Copies ofMOA & AOA in case of a company.
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CONT
Choice of factory site
Form of organization
Problem of construction- acquisition of land
in chosen locality
Architectural design of building
Appointment of engineers & contractors
Civil work like obtaining power & water connection
Supervision of construction work
Acquisition & installation of machinery & equipment.
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CONT
Supply of raw materials
Financing the unit
Recruitment & training of staff Trail run
Marketing
Gestation period
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Ex:- Powerlooms
Registration of small scale industries
Infrastructure
Machinery Raw materials
Finance
Marketing incentives
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THANK YOU ..