Are you planning to start a new venture and want to list down what all requirements are needed for preparing a detailed project report to showcase the lenders and bag a loan/funding deal, Read to know more.
Sl No | Particulars | Remarks |
A | Concept Note | |
1 | Project overview- a brief writeup on what the project is (eg starting a bottling plant, building a public mall etc.) | |
2 | Geo Location of the expected place where the project is planned to be established | |
3 | Background of the promoters involved - Background involves the education background, previous similar experience in the proposed project, any other experience in any other area of business | |
4 | KYC of the promoters- PAN, Aadhar | |
5 | Promoters related party business details - details related to other proprietary, partnership firm or companies run by the promoter | |
6 | Net worth certificate, ITR and financials of the promoter (if bank loan is taken and banks ask the promoter for personal guarantee) | |
7 | Brief details on the industry in which the proposed project falls | |
8 | Details on the target customer, sales strategy, location of sales, mode of sales (online/offline etc.), manpower requirements and availability | |
9 | Expected project completion timeline | |
B | Detailed Project Report | |
10 | Source of funding - % of promoter contribution and % of bank loan (also details of security to be provided, against which loan will be taken) | |
11 | Detailed quotations for purchase of fixed asset for which term loan is sought (quotations not older than 1 month) | |
12 | Details on period of funding sought from bank (5 year or 7 year or so) and expected rate of interest applicable. | |
13 | DSCR | |
14 | Details of funding to be sought from bank in form of cash credit | |
15 | Total production capacity and its utilization schedule (eg-first year -75%, second year- 85% and so on) | |
16 | Expected sales to be achieved during the period for which project report is drafted | |
17 | Average level of inventory to be maintained - provide inventory turnover workings | |
18 | Details related to purchases (being stock), direct expenses (being fuel, electricity, transportation etc.), indirect expenses (being rent, admin, selling
etc.) for the project period (note: every year the same has to be adjusted with inflation)
| |
19 | Details of salaries, wages and other manpower cost (note: provide details on number of human resources to be deployed, for eg: 10 managers, 200 factory staffs etc., with expected salaries of each human resource) | |
20 | Computation of ratios like expected GP ratio, NP ratio, debtor, creditor and inventory turnover ratio, CAGR, DSCR, Payback period, break-even analysis etc. | |
The above is a preliminary requirement list of documents, and additional documents may be required which will vary from case to case basis.
We hope the above blog was helpful in enhancing your knowledge on the matter. In case of any queries feel free to get in touch with our team of experts.
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