PREPARATION OF PROJECT REPORT Oct 11, 2009 CA. SUNNY SABHARWAL
What is a Project Report <ul><li>First introduction to the Project </li></ul><ul><ul><li>Even before meeting the Promoters...
Purpose of Project Report <ul><li>Funding from  LENDERS </li></ul><ul><li>Funding from  INVESTORS </li></ul><ul><li>What’s...
General  Contents of a Project Report <ul><li>Background & Business Description </li></ul><ul><li>Market Study </li></ul><...
Project Report Hisar Branch Preparation of Project Report Background & Business Description Market Study The Project Proje...
Background and business description <ul><li>Executive Summary* </li></ul><ul><li>Promoters : Promoters and their backgroun...
Project Report Hisar Branch Preparation of Project Report Background & Business Description Market Study The Project Proje...
Market Analysis <ul><li>What is the business :  Product or Service </li></ul><ul><li>Industry – IT, Realty, Power, Automob...
Project Report Hisar Branch Preparation of Project Report Background & Business Description Market Study The Project Proje...
<ul><li>What’s the vision of entrepreneur? </li></ul><ul><ul><li>What will he do and for how long </li></ul></ul><ul><li>W...
Project Report Hisar Branch Preparation of Project Report Background & Business Description Market Study The Project Proje...
Project Implementation <ul><li>Project SWOT analysis and strategy </li></ul><ul><ul><li>Why here and not in Introduction S...
Project Report Hisar Branch Preparation of Project Report Background & Business Description Market Study The Project Proje...
Project Financials … 1 <ul><li>Project Costs  </li></ul><ul><ul><li>To be included –  </li></ul></ul><ul><ul><ul><li>Cost ...
Project Financials … 2 <ul><li>Project Revenues </li></ul><ul><ul><li>Find innovative Means </li></ul></ul><ul><ul><li>Bet...
Project Financial … 3 <ul><li>Some  numbers lenders/investors are interested in –  </li></ul><ul><ul><li>Project Cost </li...
Projects???
Checklist for preparation of a Project Report <ul><li>Clear  and  complete  understanding of project </li></ul><ul><li>Rel...
THANK YOU <ul><li>CA. Sunny Sabharwal </li></ul><ul><li>+91 99586 77766 </li></ul><ul><li>sabharwal.sunny@ yahoo.com </li>...
Upcoming SlideShare
Loading in …5
×

Preparation of Project Report

4,122
-1

Published on

An insight on preparation of project report for funding from lenders and investors. Kept general for benefit of large viewers.

Published in: Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
4,122
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
143
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide
  • http://www.sezindia.nic.in/
  • Preparation of Project Report

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

      Clipping is a handy way to collect important slides you want to go back to later.

    ×