2. PROJECT Report preparation
โ Proposal for creation of productive capabilities for manufacturing goods and
providing services
โ Written statement of what an entrepreneur proposes to take up
โ Classification regarding processes needed for setting up and managing a
business venture
โ Contains general as well as detailed information about demand, supply sources,
capacity of plant etc
3. Report contains
โ General Information:
Biodata of promoter, industrial profile (industry performance- past&present) ,
Registration, product details, product utility etc
โ Project Description:
Location, physical infrastructure, labour, availability of raw materials,
transportation facilities
โ Market Potential:
Demand & supply, expected prices, after sale services
4. โ Capital Costs & sources of Finance:
Capital costs like estimate of land and building, plant and machinery, installation
charges etc
Clear separation of owners contribution and funds from FI should be stated
โ Assessment of WC:
WC requirements and its source of supply should be clearly mentioned
Length of WC cycle
5. โ Other Financial Aspects:
Projected profit and loss
Projected balance sheet
Projected cash flow statement
โ Economic & social valuables:
Socio-economic benefits should be mentioned like employment generation,
development of area etc
6. โ No objection certificate:
โ Apply for it with the directorate of industries
โ Following documents needed:
a)Application form
b)Legal document of unit location
c)Certificate showing the industrial unit in conforming zone
d)If located in industrial estate proof of approval from government
e)Detailed scheme of proposed product process of production
f)Electricity license document
g)Justification of NOC
h)RBI challan of the required amount
7. In short it covers:
โ Managerial and entrepreneurial capabilities which gives idea to FI
about entrepreneurial competency
โ Socio-economic benefits like employment generation, area
development
โ Market potential of the product &projection of short term and long
term demand of product
โ Technical feasibility as to manpower, technologies available
โ Financial viability by using different ratios to understand working
capital requirement, repayment capacity etc