6. project evaluation
TRANSCRIPT
PROJECT APPRAISAL
A project can be defined as a scheme of things to be done during a specified period in future for deriving expected benefits under certain assumed conditions.
Project Appraisal basically means validation of various assumptions outlined in the project.
What is a project ...
The purpose of project appraisal is to ascertain whether a project is sound -•Technically•Economically•Financially•Commercially, & •Managerially.
Project Appraisal
PROJECT APPRAISAL
ENTREPRENEUR / PROMOTERS
ENTREPRENEUR / PROMOTERS
PRODUCT(S) & USE OF THE PRODUCTS
PRODUCT(S) & USE OF THE PRODUCTS
MARKETING MANGEMENT
MARKETING MANGEMENT
PRODUCTION MANAGEMENT
PRODUCTION MANAGEMENT
FINANCIAL MANAGEMENT
FINANCIAL MANAGEMENT
1 2
4 5
3
ORGANISATION AND SYSTEMS
ORGANISATION AND SYSTEMS
6
ENTREPRENEUR / PROMOTERS
ENTREPRENEUR / PROMOTERS
PRODUCTION MANAGEMENT
FINANCIALMANAGEMENT
PROMOTERS & THEIR BACKGROUND – QUALIFICATIONS, EXPERIENCE, SOCIAL STATUS, INTEGRITY, REFERENCE TO DEFAULTERS LISTS
PROMOTERS & THEIR BACKGROUND – QUALIFICATIONS, EXPERIENCE, SOCIAL STATUS, INTEGRITY, REFERENCE TO DEFAULTERS LISTS
SOURCES OF PROMOTERS CONTRIBUTION TO THE PROJECT – TIMING FOR INTRODUCTION OF FUND – WHY NOT UPFRONT? INTERNAL CASH ACCRUALS?
SOURCES OF PROMOTERS CONTRIBUTION TO THE PROJECT – TIMING FOR INTRODUCTION OF FUND – WHY NOT UPFRONT? INTERNAL CASH ACCRUALS?
MANAGEMENT TEAM & KEY MANAGEMENT PERSONSMANAGEMENT TEAM & KEY MANAGEMENT PERSONS
PROJECT APPRAISAL
PROJECT APPRAISAL
PRODUCT(S) & USE OF THE PRODUCTS
PRODUCT(S) & USE OF THE PRODUCTS
TECHNICAL SPECSPRODUCT RANGE
TECHNICAL SPECSPRODUCT RANGE
TYPE OF PRODUCTS
TYPE OF PRODUCTS
INDUSTRIAL PRODUCTS
INDUSTRIAL PRODUCTS
CONSUMER PRODUCTS
CONSUMER PRODUCTS SERVICESSERVICES
USE OF THE PRODUCTS
USE OF THE PRODUCTS
PROJECT APPRAISAL
MARKETING MANGEMENT
MARKETING MANGEMENT
PRICINGPRICINGDEMAND IN THE MARKET SEGMENT
DEMAND IN THE MARKET SEGMENT
POTENTIAL MARKET
POTENTIAL MARKET
MARKET SEGMENTS
MARKET SEGMENTS
PROJECT APPRAISAL
PRODUCTION MANAGEMENT
PRODUCTION MANAGEMENT
Technical Know-howManufacturing ProcessPlant & MachineryUtilitiesLand, BuildingInstalled Capacity
Raw material, YieldConsumablesPower & FuelManpowerPollution ControlRegulatory factors
PROJECT APPRAISAL
FINANCIAL MANAGEMENT
FINANCIAL MANAGEMENT
COST OF PROJECTMEANS OF FINANCED/E, ROI, DSCR, IRR
COST OF PROJECTMEANS OF FINANCED/E, ROI, DSCR, IRR
INTEREST RATEMORATORIUMREPAYMENT
INTEREST RATEMORATORIUMREPAYMENT
PROFITABILITYESTIMATE
COST OF PROJECT•Land & Land Development.•Building & other civil works.•Plants & Machinery.•Utilities - Water, Steam, Power, etc.•Furniture's & Fixtures•Contingencies•Margin for Working Capital
MEANS OF FINANCE
•Equity Share Capital•Bank Term Loans•Lease / Hire Purchase•Debentures•Unsecured Loans
PROJECT APPRAISAL
ORGANISATION & SYSTEMS
ORGANISATION & SYSTEMS
SYSTEMSSYSTEMSORGANISATIONORGANISATION
INVENTORY CONTROLPRODUCTION PLANNING & CONTROLBUDGETARY CONTROL
INVENTORY CONTROLPRODUCTION PLANNING & CONTROLBUDGETARY CONTROL
CONSTITUTIONPROPRIETORSHIPPARTNERSHIPPRIVATE LIMITEDLTD. COMPANYSOCIETYTRUST
CONSTITUTIONPROPRIETORSHIPPARTNERSHIPPRIVATE LIMITEDLTD. COMPANYSOCIETYTRUST
MANPOWERHIERARCHYAUTHORITYRESPONSIBILITY
MANPOWERHIERARCHYAUTHORITYRESPONSIBILITY
Assessment of :•Requirement of credit
•Fund Based•Non-Fund Based
•Credit Risk Assessment (Management, Industry and Financial risks)•Risk Assessment / Mitigation / sharing•Pricing of Loan
Security – Primary / CollateralSanction of LoanRelated Non-Fund Based FacilitiesFollow-up of implementation of the project
Project Appraisal
THANK YOU