21 June 2008
plz explain in detail the various aspects/points to be considered while making a project report for term loan/cc How to make projected/estimated Bsheets
13 November 2008
A Business Plan/Project Report submitted to NEDFi for consideration should include the following information:
1. Description of the project.
2. Promoters, Management and Technical Assistance:
* Detailed Biodata of promoters including financial information. * Proposed management arrangements. * Description of technical arrangements (management, production, marketing, finance etc.).
3. Market and sales:
* Basic market orientation: local, national, regional, or export. * Projected production volumes, unit prices, sales objectives, and market share of proposed venture. * Potential users of products and distribution channels to be used. Present sources of supply for products. * Future competition and possibility that market may be satisfied by substitute products. * Tariff protection or import restrictions affecting products. * Critical factors that determine market potential.
4. Technical feasibility, manpower, raw material resources, and environment:
* Brief description of manufacturing process. * Comments on special technical complexities and need for know-how and special skills. * Possible suppliers of equipment. Ideally three competitive quotations to be enclosed. * Availability of manpower and of infrastructure facilities (transport and communications, power, water, etc.). * Breakdown of projected operating costs by major categories of expenditures. * Source, cost, and quality of raw material supply and relations with support industries. * Import restrictions on required raw materials. * Proposed plant location in relation to suppliers, markets, infrastructure and manpower. * Proposed plant size in comparison with other known plants. * Potential environmental issues and how these issues are addressed.
5. Investment requirements, project financing, and returns:
* Estimate of total project cost, broken down into land, construction of buildings and civil works, plant and machinery, miscellaneous fixed assets, preliminary and preoperative expenses and working capital. * Proposed financial structure of venture, indicating expected sources and terms of equity and debt financing. * Type of NEDFi financing (loan, equity, quasi-equity, a combination of financial products, etc.) and amount. * Projected financial statement, information on profitability, and return on investment. * Critical factors determining profitability.
6. Government support and regulations:
* Project in context of government economic development and investment program. * Specific government incentives and support available to project. * Expected contribution of project to economic development. * Outline of government regulations on exchange controls and conditions of capital entry and repatriation.
7. Timetable envisaged for project preparation and completion.
CAclubindia
