FINANCEMAN: PROJECT CONSULTANTS FOR INDIA

PROJECT REPORTS FOR SMEs [Rs. 10000/- ONLY]

 

 

BRIEF NOTE ON PROJECT REPORTS FOR SMEs/SSIs:

 

Browse Web Site:  http://www.financeman.org  for answers to FAQs on

pre-investment issues and for clarifications on pre-ordering information:

 

The lists of project reports for SMEs and SSIs listed on FINANCEMAN’s Web Sites

http://www.financeman.org/financeman00.htm and www.financeman.org are based on desk survey.

The Reports provide basic pre-investment information required by the promoters of small and

medium enterprises / small scale industries (SMEs/SSIs). The Reports answer the FAQs

(Frequently Asked Questions) from entrepreneurs on different aspects of new projects.

 

There is a misconception that a project report is required only for obtaining loans

from banks and financial institutions. Therefore, those who set up businesses and industries

with own resources may think that they do not need project reports. This is not correct.

 

Starting a new business unit with a Project Report is like doing it with a Blue Print. Promoters

can know within how many years the investment will be paid back (Pay-back Period).

The project reports (with financial projections) contain 7-year estimates regarding income,

expenses and profits for each year, cash inflows and outflows for each year, balance sheet

of liabilities and assets at the end of each year and profitability ratios (DSCR, Payback Period,

ROI, ROS, ROE and IRR) and repayment schedules of working capital and long-term loans,

if any taken. The promoters can use the estimates given in the project reports as standards

to compare with actual performance and use negative variations to take corrective steps.

 

In contrast, the promoters starting business ventures without project reports are virtually

jumping in the dark without any clue to the outcomes. They do not have any measuring rods

to analyse the performance. In the emerging globally competitive business environment,

entrepreneurs dare not launch new businesses or expansion and diversification projects

without preparing Project Reports!

 

Approximate estimates of project costs or total investments, for each project for a typical year

of full operation are shown in brackets at the end of project names. The project cost represents the

estimate of total investment required for a full year of operations after commissioning the project.

The estimates of total investments should not discourage the promoters of SME projects.

The estimates of project cost or total investment should instill a sense of realism in place of an

otherwise euphoric feeling among the promoters of new projects.

 

The promoters can re-schedule the projects in phases or use just-in-time management

techniques to cut down working capital requirements. By restricting working capital to

one month’s requirement and by re-working the figures, the amount of working

capital margin to be included in project cost or total investment may be brought down.

With these steps, the promoters will be able to reduce amounts of funds mobilization

and utilization and bring down interest expenses. The proportions of Fixed Capital (FC) and

Working Capital (WC) in the Total Project Cost/Total Investment are given in percentages,

within brackets, at end of projects names.

 

The following categories of people will definitely require project reports:

i.                     Entrepreneurs and promoters,

ii.                    Financiers (Business Associates, Financial Institutions and Banks),

iii.                   Chartered and Cost/Management Accountants/Financial Analysts,

iv.                  Buyers & Vendors of fixed & floating assets, and

v.                   Licensing & Approving Authorities. 

 

EXPLANATORY NOTES:

1)      ‘Back of the envelope’ or rough estimate of project cost or total investment for each project for a typical year of full operation is shown at end of project names.

2)      FINANCEMAN does not provide technology. Technology must be sourced from the machinery supplier. Alternatively, the promoters should associate a technologist during project implementation or appoint a technician trained by the machinery supplier. FINANCEMAN shall provide the names and addresses of machinery suppliers in the Project Report for SMEs/SSIs.

3)   About 1650 Project Reports listed on our Website www.financeman.org with names prefixed with a [*] Star Mark are offered to entrepreneurs at a uniform professional fee of Rs. 10000/- per Project Report.

4)      The professional fee is payable to FINANCEMAN ASSOCIATES through DD drawn on any bank branch in Mumbai. Click here to get our Address!

5)      The date of receipt of your typed or hand-written order and Bank Draft by FINANCEMAN is the starting point for the preparation of the project report for SMEs/SSIs!

 

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