project feasibility report priya

8/8/2019 Project Feasibility Report Priya

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PROJECT

FEASIBILITYREPORT

PRESENTED BY

PRIYA


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Project feasibility analysis

1st step - establishment of objectives to be

attained

2nd

step in-depth study 3rd step- analysis Include market analysis,

technical analysis, financial analysis & social

profitability analysis.


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Market analysis

A brief description of market

An analysis of past & present demands

An analysis of past and present supply,broken down as to source as well as

information which will assist in determining

the competitive position of the product such

as selling prices, quality & marketing

practices of the competitors.


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Technical analysis

A description of the product

A description of selected manufacturing

process A determination of plant size & production

schedule

Selection of machinery & equipment An identification of plants location & an

assessment of its desirability


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CONT.

A design of plant lay-out & an estimate ofcost of erection of proposed buildings & landimprovements.

A study of availability of raw materials &liabilities & utilities

An estimate of labor requirements

A determination of type, quantity & method ofwaste to be disposed off

A estimate of production cost of product


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Financial analysis

Projects that involve new companies ,statements of total project cost, initial capitalrequirements & cash flows relative to project

time-table; All projects, supporting schedules for

financial projection, stating assumption madeas to collection period of sales, inventorylevels, payment period of purchases &expenses, and element of production cost,selling, admin. & financial expenses.


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CONT.

All projects, prepare a financial analysis

showing returns on investments, returns on

equity, break-even volume & price analysis. All projects, if necessary, a sensitivity

analysis to identify items which have a

substantial impact on profitability or possible

a risk analysis.


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Investment proposal

General information on product, company

history, nature of industry & reputation &

qualification of existing or proposedmanagement.

A description of period, which consists of

extracts from economic feasibility studies &

includes information on such items asmarket, production, selected manufacturing

methods & a financial statement


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CONT

Miscellaneous information, such as steps

taken for implementation of project &

qualifications of technical partners envisagedor selected.


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FEASIBILITY REPORT

Before starting a small-scale industry, one shouldconsult director of industries & SISI located inones state.

SISI guides entrepreneurs as to type of industry tostart, where to start & how to start it.

Help them to select various items of manufacture,

various financial institutions with a view tosecuring financial assistance, technical help inselection of proper raw materials& type ofmachine.


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SELECTIONOFSITE

Nearness to source of raw materials.

Nearness to market.

Availability of land at cheap rates.

Availability of skilled labor &cost of labor inarea.

Availability of transport &communication

facilities. Availability of power, water, waste disposal &

other essential services.


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CONT.

Incentives & concessions available in

different states.

General business climate in the region. Climate &environmental factors.

Availability of factory sheds in industrial

estates.


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Legal considerations

Registration with director

of industries- at 2 stagesProvisional registration

Permanent registration


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Provisional registration

Application in prescribed form duly filled

&signed by proprietor, partners, directors as

case may be Passport size photos of proprietor, partners,

directors as case may be

Photocopy of ration card of proprietor,

partners, directors who have signed theapplication


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CONT.

Photocopy of partnership deed if unit is a

partnership firm

In case applying unit is a company,photocopy of memorandum & articles of

association and the certificate of

incorporation.


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Provisional registration

Will enable the small scale unit to: Apply for a shed in an industrial

estate/developed site in an industrial area&material for construction of a shed as thecase may be

Apply to the corporation/ municipal/

panchayat /other local authorities forpermission to construct shed to establish aunit.


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CONT.

Apply for power & water connections

Apply for financial assistance toSFC/nationalized banks /other financialinstitutions on the basis of a project report asmay be required by them

Apply to NSIC /SSIC/ other institutions for

procuring machinery on hire purchase basis Make firm arrangements for working capital

resources with banks & other institutions


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CONT.

Obtain sales tax, excise duties, etc.

registrations wherever required

Take other steps that may be necessary toestablish the industrial unit.

Apply for import of raw materials


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MUNICIPAL LICENSE

In DELHI it is necessary to obtain from MCD.

Registration with central &state sales tax

department is necessary for which contact toconcerned dept.

If small scale unit comes within purview of

factories act, registration with inspector of

factories will also required. Otherwise unithas to be registered under shops

&establishment Act, wherever applicable.


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PERMANENT

REGISTRATION

Rent receipt orNOC from landlord or

photocopy of house tax receipt in the name of

small scale unit Photocopy of municipal license, wherever

applicable

If power is not in name of unit than NOC from

connection holder

Photocopy of sale bill of each item


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CONT

Photocopy of purchase invoice of machinery

Photocopy of partnership deed if unit is apartnership

Photocopy ofMOA & certificate ofincorporation, if unit is a company

Photocopy of approved scheme & project

report if unit is assembling/ manufacturing An affidavit in prescribed Performa duly

attested by notary public


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Cancellation of registration

Unit remains closed continuously for more

than 1 yr.

Unit fails /refuses /avoids to give full & trueinformation required by registering authority

from time to time

Unit has misutilized raw materials allocated to

it


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Registration with GS&D /NSIC

Copies of balance sheet & profit & loss

account for last 3 yrs

Income tax clearance certificate Ownership document in respect of firms

factory and machinery

Certificate in Form A in case of a partnership

concern

Copies ofMOA & AOA in case of a company.


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CONT

Choice of factory site

Form of organization

Problem of construction- acquisition of land

in chosen locality

Architectural design of building

Appointment of engineers & contractors

Civil work like obtaining power & water connection

Supervision of construction work

Acquisition & installation of machinery & equipment.


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CONT

Supply of raw materials

Financing the unit

Recruitment & training of staff Trail run

Marketing

Gestation period


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Ex:- Powerlooms

Registration of small scale industries

Infrastructure

Machinery Raw materials

Finance

Marketing incentives


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THANK YOU ..

project feasibility report priya

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