The DPR is intended specially for the banks and financial institutions, as also for various Government Departments, Boards and the organizations constituted by Central and State Governments as Implementing Agencies for the implementation of various schemes of funding through incentives, subsidies etc. Thus, with a view to seek financial assistance for any industrial, commercial or non-commercial project, a DPR is prepared covering more specific details of all the aspects (Technical, Legal, Financial, Marketing and Operational) of the proposed project. The DPR is prepared after deciding the broad contours of the proposed project wherein the focus is mainly on analysis and accuracy. This is also added with a CMA Data to make it a Complete Financial Proposal.
Guidelines for Preparing A Detailed Project Report
A project report for new business conducts a profound road map for effectual business venture. It discusses whether the business requires finance or not, the challenging risks, several problems en-route, etc. Hence it becomes vital for every new business to prepare a project report, to acquaint them on forewarning issues. Since the appraisal of the Project involves evaluation of the Project in the following areas, the following documents/information is required.
- Memorandum and Articles of Association: Object, authorized and paid-up share capital, promoter’s contribution, borrowing powers, list of directors.
- Company as the Promoter:Corporate plan of the Company, Bankers’ report on dealings and repayment of past loan assistance, details of group companies, operations, balance sheet and profit & loss account of the promoter company
- New Promoters:Educational background, any industrial experience, family back ground, sources of income, personal properties, income tax/ wealth tax returns
- Management and Organization set up: Broad composition of the Board, details directors and their responsibilities, details of Chief executive and functional executives including qualification, experience, and organization set-up for existing company and during project implementation for new company.
- Technology and manufacturing process:Proven/new technology, basis of selection of technology, performance data of plants based on the technology, details of licensor of technology, process flow chart and description.
- Location of the Project: Location advantage, availability of raw material and other utilities, infrastructure facilities, availability of labour, environmental aspects
- Plant and Machinery: List of machinery & equipment, details of suppliers, competitive quotations, technical & commercial evaluation of major equipment
- Raw material, Utilities and Manpower:Details of raw materials and suppliers, electricity and water supply, basis of manpower estimates, details of manpower e.g. managerial, supervisory, skilled/unskilled, training needs
- Contracts: Agreement with contractors detailing on know-how, engineering, procurement, construction, financial soundness and experience of contractors
- Environmental Aspects: Air, Water and Soil Pollution, list of pollutants / Hazardous substances, their safety, handling and disposal arrangements, compliance with national and International Standards.
- Commercial Viability: Existing and potential market demand and supply for the proposed product in respect of volume and pattern Share of the proposed product of the company in the total market through marketing strategy Selling price of the product and export potential, if any. Buy-back arrangements, if any.