Presentation on

Project Appraisal

Prepared By :Jagruti Solanki – 47

Mayuri Nimavat - 34Submitted To :Prof. Pintu sir

K K Parekh Institute of Mgt Studies - Amreli

Appraisal means measurement and judgment.Project define as:Non routine Non repetitive undertaking. Involves number of uncertainties.Definite period of time. ( starts to end ).

Project is the co ordination of the hard work of persons drawn from different functional areas and contribution to external agencies.

Meaning of Project Appraisal

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Project Appraisal

When is it done:◦After preparation and design of the project

What is project appraisal:◦Provides a complete and systematic review of all

characteristics of the project Why the project Appraisal is Needed:

◦To development and successful completion of projects

Objectives & Scope: -

To remove related information for determining the success or failure of a project.

To apply standard index for determining the rate of success or failure of a project.

To determine the expected costs and benefits of the project.

To enter at specific conclusions regarding the project.

Significance: -

It helps in enter at exact results.

It evaluates the attractiveness of the project.

It provides information to determine the success or failure of a project.

It employs existing standard to predict the rate of success or failure of the project.

It verifies the hypothesis framed for the project.

Initial Assessment Define problem and long-list Consult and short-list Develop options Compare and select Project

Process

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Technical Feasibility

The availability of the raw materials, power, transportation facility, skilled man power, engineering facilities, maintenance, local people etc are coming under technical analysis.

For example, in all projects, there should be a location. In the location, there will be buildings. In the buildings, there could be plant and machinery used for various purposes.

Financial feasibility

This involves the preparation of cost estimates, means of financing, financial institutions, financial projections, break-even point, ratio analysis etc.

The cost of project includes the land , building, plant and machinery, technical know-how fees, pre-operative expenses, contingency expenses etc.

The financial projections include the cash flow and expected balance sheet.

The ratio analysis will be made on debt equity ration and current ratio.

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Social Aspects

What will be the effect of the project on different groups? At

◦ Individual

◦Household and

◦society levels How will the project impact on women and men? Will the social benefits of the project be greater than the

social costs over the life of the investment when account is taken of time?

Economic Appraisal

How far the project contribute to the development of the sector,

industrial development, social development, maximizing the growth of employment, etc. are kept in

view while evaluating the economic feasibility of the project.

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Environmental Appraisal

Will the project have any bad effect on the environment?

Have remedial measures been included the project design?

make possible urban development, improve rural incomes,

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Environmental Damage. Renovation Measures.

Will the project be compatible with government policy, at both central, regional and local level?

Ecological & Political Appraisal

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Conclusion

It is seen that the Project Appraisal can be structured to cover the full range of functionality of the project management process. It is a powerful tool which should not be ignored but which must be judiciously applied .

Thank Youuuu....