PROJECT CONSULTANTS FOR
PROJECT REPORTS FOR SMEs [Rs. 10000/- ONLY]
WHY DO YOU REQUIRE PROJECT REPORTS
The following categories of people will definitely require project reports:
ii. Financiers (Business Associates and Banks/Financial Institutions),
iii. Chartered Accountants, Cost and Management Accountants,
iv. Business Consultants and Financial Analysts, and
v. Projects Approving / Licensing Authorities.
There is a misconception that a project report is required only for obtaining loans
from banks and financial institutions. Those who set up businesses and industries
with their own money, therefore, think that they may not need project reports.
This is not correct. Project Report represents a Blue Print of the new project and
has multiple purposes.
Starting a business with a Project Report is like doing it with a Blue Print. The promoters
know exactly within how many years the investment will be paid back (Payback in years ).
The projects reports (with financial projections) contain 7-year forecasts 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, profitability ratios (ROI, ROS, ROE, IRR)
and repayment schedules of working capital and long-term loans. The promoters can
use the forecasts given in the project reports as standards to compare actual
performance and to use variations to initiate restructuring of business practices.
In contrast, the promoters starting new units without project reports are virtually
jumping in the dark without any clue where they are headed. They do not have standards
to compare the performance. In the emerging globally competitive business environment,
entrepreneurs dare not launch new businesses or expansion and diversifications projects
without preparing project reports!
FINANCEMAN ASSOCIATES CopyrightŠ 2007