This document outlines the format for an entrepreneurship development project (EDP). It includes sections for an introduction, market analysis, manufacturing process, financial analysis, costing, means of finance, cost of production, and profit projections. The financial analysis section covers cost of raw materials, land and building, plant and machinery, fixed capital investment, working capital, capital formation, cost of production, profitability, break even point, and cash flow and balance sheet projections for 5-10 years. It provides a template for students to develop a complete business plan for a new enterprise.

1. EDP Project Format -- Dr.Syed Gous
First page—Label
Certificate
Index
1 Introduction of the Project-
The Problem of unemployment is becoming a colossal in all of the developing
nations. There is enormous increase in the population. Every year India adds to
her population afresh. More than this every year about 5 million people
become eligible for securing jobs. The remedial measures for reducing
unemployment are to lay greater emphasis on creation of opportunities for
self-employment, augmentation of productivity and income levels of the
working poor, shift in emphasis from creation of relief type of employment to
the building up of durable productive assets in the country.
In order to inculcate a desire to become entrepreneur among the students
NSIC has devised a unique "Entrepreneurship Orientation Programme" (EOP).
The program is specially designed for the students, who are still pursuing their
studies in Schools/Colleges/Institutions and do not have any idea about
Entrepreneurship.
Purpose of EDP is to create awareness among the students for setting up of
new Enterprise after completion of their studies instead of searching for jobs
only. This program makes participants familiar about role and importance of
MSMEs in Indian Economy, process of setting up of Enterprise, preparing
Project Reports, Identifying marketing possibilities as well as with the issues
regarding various statutory requirements such as Income Tax, VAT etc.
The detailed project profile reports cover all the aspects of business, from
analyzing the market, confirming availability of various necessities such as plant
& machinery, raw materials to forecasting the financial requirements.
The scope of the report includes assessing market potential, negotiating with
collaborators, investment decision making, corporate diversification planning
etc. in a very planned manner by formulating detailed manufacturing techniques
and forecasting financial aspects by estimating the cost of raw material,
formulating the cash flow statement, projecting the balance sheet etc.
Project Introduction, Brief History of the Product, Properties, BIS (Bureau of
Indian Standard) Specifications & Requirements, Uses & Applications.
2 Market Outline / Market Potential
It includes study of various competitors’ products. Their product wise value,
market share, & its Scope.
3 Manufacturing Process if any
4 Financial Analysis
Cost of Raw Materials, Cost of Land & Building, Cost of Plant & Machineries,

2. EDP Project Format -- Dr.Syed Gous
Fixed Capital Investment, Working Capital, Project Cost, Capital Formation,
Cost of Production, Profitability Analysis, Break Even Point, Cash Flow
Statement for 5 to 10 Years, Depreciation Chart, Conclusion, Projected Balance
Sheet, Land Man Ratio.
I Land & Building
While Selecting Land & Building
Entrepreneurs has to take various point into consideration. Selection of Land
& Building Depends upon various aspects like
Availability of Land & Building / Shop at economic rates
Availability of Labors,
Easy availability of Raw Material
Transport facility , Electric Supply, Water facility,
Most importantly scope of Market/ Consumer / Customer
Ii Plant & Machinery Required
Sr No Particulars Rate Quantity Total
Amount
ABC 1/ One 2
Total
iii Raw Material Required
Sr No Particulars Rate Quantity Total
Amount
ABC 1/ One 2
Total
iv Utilities- Take Monthly Utilities & then Multiply it by 12 so that we can get
yearly amount.
Sr.No Particulars Amount
1 Light Bill
2 Water Bill
3 Gas
4 Fuel
5 Internet Bill
6 Telephone Bill
Total Aas812=
v Pre liminiary & Pre -operative Expenses
While doing projects , we come across various types of expenses, before
starting projects – like electric bill, water bill, & some contingencies expenses.

3. EDP Project Format -- Dr.Syed Gous
vi Other Fixed Assets-
Furniture, Table, Chairs, Cupboards,etc
Vii Projected Annual Sales (PAS)
For Example Consider your Projected Annual Sales = 1,00,00,000,
Then your Working Capital Requirement = PAS / 4
= 1,00,00,000/ 4
= 25,00,000/-
Then Net working Capital Requirement = Working Capital Requirement / 5
= 25,00,000/ 5
=5,00,000/- =
This is your Margin Money
Viii Project Cost
Sr.No Particulars Amount
1 Land & Building
2 Plant & Machinery
3 Fixed Assets
4 Margin Money
Total 100
IX Manpower Requirement
While doing projects, we need to appoint employees & need to pay salary
Sr No Particulars Salary/ M Quantity Total
Amount
1 Admin Manager
2 Admin Staff
3 Technical Staff
4 Workers
5
Means of Finance –
Sr Particulars Total
1 Promoters Contribution
(40%)
40 40
2 Bank Loan( 60%) 60 60
Total 100

4. EDP Project Format -- Dr.Syed Gous
X Cost of Production
Sr No Particulars Amount
1 Raw material
2 Salary & wages
3 Utilities
4 Contingencies
Total 300/-
XI Profit = Sales – Cost of Production
For Eg- 1000- 300
= 700
Profit After Interest & Depreciation
= 700-( Interest + Depreciation)
= 700( 150 + 50)
= 500
Net Profit = 500 –( 30 % )s
Once you got NP
You need prepare 1st
trail balance for 1st
year
Then, for next two years