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Srini

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17 views

Srini

Uploaded by

shashankkanungo
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 15

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?
PROJECT
• SELECTION OF LINE OF ACTIVITY
• GETTING THOROUGH KNOWLEDGE ABOUT THE
PROPOSED LINE OF ACTIVITY
• HOW 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
WHO IS AN ENTREPRENEUR?
• EVALUATION OF THE CHARACTER ,
LIKE FRANKNESS, REASONABLENESS,
PATIENCE, ATTITUDE TOWARDS RISK
TAKING ETC.
• OTHER QUALITIES :
– INITIATIVE , DYNAMISM , LEADERSHIP AND
RESOURCEFULLNESS.
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 &
Relatives
Building – 40 %
Machinery – 25 %
COST OF PROJECT
Land Cost
Building Cost
Machinery Cost
Working Capital Margin
All the above Costs have to be met out
from Long Term Sources.
WORKING CAPITAL
For running a business (or) a factory Working
Capital is very much required.

How to mobilize Working Capital ?


1) Own investment
2) Borrowings Friends & Relatives
Banks
BANK BORROWINGS
• Lending is an Art and not a Science
• Expectation of the Bank Manager will
be
1) Will he repay the Loan? – Character,
Competence and Capital.
2) Competence : can he repay the Loan?
Managerial Competence.
Technical Competence
Capital – Promoter’s Stake in the business.
A Project can be technically
feasible but it may be
Financially not viable.
Manufacturing Cost
Administrative Cost
Selling Expenses
Net Profit
PRINCIPAL SECURITY
• A good security • Marketability
should satisfy the
principle of
• Ascertainability
of Value
‘MAST’
• Stability of
(ie) it should possess
Value and
four qualities , namely • Transferability
of ownership.
COLLATERAL SECURITY
EM of Immovable Personal
property Guarantee of a
1. Landed Property
worthy Person.
2. Building Property
a) House
b) Factory
Building.
FINANCIAL ASSISTANCE
• TERM LOAN • SHORT TERM
LOAN

 Building , Technical  Presale Credit Limits.


Know-how fees  Postsale Credit Limits.
 Machinery.
SMALL AND MEDIUM ENTERPRISES
SCHEMES AND OPPOTUNITIES

Investment in Plant and machinery does


not exceed Rs. 1.00 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. 5.00 Crores.
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.10.00 Crores may be treated as
Medium Enterprises.
List of Service Sector activities
covered under Medium
Enterprises - Services
 Call Centres  Professionals like Doctors,
 BPOs Architects, Software
Providers, Engineering
 Cybercafes concerns, Consultancy and
 DTPs Allied activities.
 Hotels and Restaurants  Beauty Parlours
 Hospitals / Clinics  Advertising Agencies
 Ancilliary agencies  Industrial Research and
Development Labs.
 Cable TV Network
List of Service Sector activities
covered under Medium
Enterprises - Services
 Industrial Testing Labs  Washing and Laundry
 Clinical Laboratories Services / Dry Cleaning.
 Industrial Photography  Motor Cycle Repairing.
 Photographic Labs /  Super Markets.
Processing Labs.  Shops , Offices , Show
 Cold Storage Services / Rooms , Training Centres
Milk Chilling / Milk of Professionals.
Processing.  Resorts and Travel
Agents.

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