Project Profile Preparation

Wpfreeware 6:49 AM Project Profile Preparation
preparation


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.
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