Project Profile Preparation

A feasibility study report is a comprehensive document that assesses the viability and potential success of a proposed project or business venture. It is conducted during the early stages of project planning to determine whether the project is feasible, economically viable, and technically achievable. The report is typically prepared by experts or consultants who analyze various aspects of the project, including market demand, financial projections, technical requirements, regulatory considerations, and potential risks.

Key components of a feasibility study report typically include:

1. Executive Summary: A concise overview of the key findings and recommendations of the feasibility study.
2. Introduction: Background information on the proposed project, its objectives, and the purpose of the feasibility study.
3. Market Analysis: Examination of the target market, including size, growth trends, competition, and consumer preferences.
4. Technical Feasibility: Assessment of the technical requirements and resources needed to implement the project, including technology, infrastructure, and personnel.
5. Financial Feasibility: Analysis of the project's financial viability, including cost estimates, revenue projections, cash flow forecasts, and return on investment (ROI).
6. Legal and Regulatory Considerations: Evaluation of legal and regulatory requirements that may impact the project, such as permits, licenses, zoning laws, and environmental regulations.
7. Risk Analysis: Identification and assessment of potential risks and uncertainties associated with the project, as well as strategies to mitigate them.
8. Conclusion and Recommendations: Summary of the key findings of the feasibility study and recommendations regarding the feasibility of the project.

The feasibility study report serves as a crucial tool for stakeholders, investors, and decision-makers to evaluate the potential of a project and make informed decisions about its implementation. It provides valuable insights into the opportunities, challenges, and risks associated with the proposed venture, helping stakeholders determine whether to proceed with the project or explore alternative options.

Like any profitable business an informative and comprehensive project profile is very significant to approve a project loan. A project profile presents estimate of the activities involved in a Project -- total investment, annual operating costs and annual income generating in projected year of a project. Following data and information is required to be included to prepare a technically sound and htechnologically appropriate project.

A) Summery of the Project:

(i) Brief Description of the Project

(ii) Name, Location, Product/Services, Capacity

(iii) Fixed cost of the Project & Means of Finance

(iv) Production Capacity, Price and Revenue Generation

(iv) Short Financial Forecast

B) Management :

(i) Name of sponsor-Directors of the company, their background and experience.

(ii) Comment on the management and financial capabilities and track record.

(iii) Performance of other concerns, if any, where such Directors are involved.

(iv) Details of foreign collaboration, if any.

(v) Names of Directors who will be responsible for supervising the administrative and technical aspects, both at the implementation and production stages.

C) Market :

(i) Proposed product-mix/service to be offered.

(ii) Capacity to be developed.

(iii) Existing demand along with future projection.

(iv) Capacity already developed.

(v) Actual capacity utilization.

(vi) Demand-supply gap.

(vii) Pricing of proposed product/service.

(viii) If the product/service is import-substitute, duty structure of imported items.

(ix) Distribution channel.

D) Technical :

(i) Location-area of land and if development of land is required, the cost thereof.

(ii) Communication facilities.

(iii) Availability of utilities.

(iv) Civil works – Type of building and specifications of construction, covered area, estimated cost.

(v) Plant and machinery (list of machinery to be enclosed)

– Imported machinery

a) C&F cost

b) Other costs

c) Country of origin

-Local machinery.

– Erection and installation.

– Technology transfer, if any

(vi) Raw materials

– Imported

a) C&F cost

b) Duty and taxes

c) Other costs

– Local raw and packing materials

(vii) Manpower

Managerial and technical

Administrative and sales

Labour:

Skilled

Semi-skilled

Unskilled

(viii) Furniture and fixture

(ix) Office equipment

(x) Transportation

(xi) Safety provision

(xii) Waste disposal

(xiii) Implementation schedule

E) Financial aspects :

– Assumption for financial analysis

– Cost of the project and means of finance

– Estimate of working capital

– Sales estimate

– Projected income statement

– Cost of service/goods sold

– Gen., administrative and selling expenses

– Break-even analysis

– Pay-back period

– Cash-flow statement

– Projected balance sheet

– Debt-service coverage ratio

– Internal rate of return

– Ratio analysis

– Sensitivity analysis

F) Economic aspects :

– No. of jobs created

– Cost per job created

Contribution to GDP

– Earning in foreign exchange or foreign exchange savings.