A PowerPoint presentation on the meaning, definition and scope of project appraisal. It also includes the aspects and steps to project appraisal

1. PROJECT
APPRAISAL:
MEANING, DEFINITION AND
SCOPE
JITHA ASOKAN
KH.AR.P2COM200

2. INTRODUCTION
Project appraisal is an exercise whereby a lending
financial institution makes an independent and
objective assessment of various aspects of an
investment proposition to arrive at the financing
decision. Appraisal exercises are aimed at
determining the viability of project and in
reshaping the project so as to upgrade its viability.

3. MEANING OF PROJECT APPRAISAL
The exercise of project appraisal simply
means the assessment of a project in terms of
its:
▨ Economic
▨ Social
▨ Financial viability.

4. ASPECTS OF PROJECT APPRAISAL
PROJECT APPRAISAL
FINANCIAL SOCIAL
LEGAL
TECHNICAL COMMERCIAL ECOLOGICAL ECONOMIC
MANAGERIAL ORGANIZATIONAL

5. DEFINITION OF PROJECT APPRAISAL
Project Appraisal means an analysis of a project to
establish its fiscal, financial and technical viability,
economic worthwhile, benefits to stakeholders and
how risks associated with the project are identified
and mitigated. It means a pre-investment analysis
of project to determine whether the project should
be implemented or not.

6. SCOPE OF PROJECT APPRAISAL
The common aspects of project appraisal
include:
▨ Market feasibility study
▨ Technical feasibility/viability
▨ Financial soundness
▨ Management and organizational
aspects/managerial soundness
▨ Economic viability/appraisal
▨ Environmental appraisal/viability
Different aspects of a project are not
independent but are highly inter-related.

7. STEPS TO PROJECT APPRAISAL
ECONOMIC
Indicates priority
use
01
TECHNICAL
Involves scale of
project and
process adopted
02
ORGANIZATIONAL
Suitability is
examined
03
MANAGERIAL
Adequacy and
competence are
critically
scrutinized
04
FINANCIAL
Determines financial
viability for sound
implementation and
efficient operation
06
OPERATIONAL
Capability of the
project
05

8. THANK
YOU