Project Appraisal - Sbm

8/8/2019 Project Appraisal - Sbm

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PROJECT APPRAISALPROJECT APPRAISAL

TEAM MEMBERS

SIMMI S. LAL 09MBA006

SHALINI SINHA 09MBA022VARSHA PRASAD 09MBA023

ARVIND OJHA 09MBA024

MUBBASHIR ALI 09MBA025

SUPRABHA KUMARI 09MBA026

PAWAN BARNWAL 09MBA027

SUDHIR KUMAR 09MBA029

MONIKA TIWARY 09MBA030


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CONCEPT OF PROJECT

APPRAISAL

Fusionof two termsProject

Appraisal


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PROJECTPROJECT A project is a business and service,

is a collaboration enterprise,

frequently involving research for

design that is careful planned to

achieve a particular aim.


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APPRAISAL

A Judgment or opinion of

something or somebody especially

one that assess effectiveness andusefulness.


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PROJECT APPRAISAL

Project appraisal means the assessment of a

project.

Project appraisal is a cost and benefit analysis of

different expect of proposed project.


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CONTINUED:

An entrepreneur need to appraise various

alternative project. Thus project analysis help in

selecting the best project among availablealternative project.


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CONTINUED:

For a financial institutions, Project appraisal is

a process whereby a leading financial institution

makes an independent and objective assessmentof various aspects of an investment proposition

for arriving at a financial decision and is aimed

at determining the viability of a project.


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METHODS OF PROJECTMETHODS OF PROJECT

APPRAISALAPPRAISAL

1. ECONOMIC ANALYSIS

2. FINANCIAL ANALYSIS3. MARKET ANALYSIS

4. TECHNICAL FEASIBILITY

5. MANAGERIAL COMPETENCE


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1. ECONOMIC ANALYSIS1. ECONOMIC ANALYSIS

It is systematic approach to determine the

optimum use of scarce resources, involves

comparison of two or more alternatives in

achieving a specific objectives under the given

constraints and assumptions.

It takes into account the opportunity costs of

resources employed and measures in monetary

terms the private and social costs and benefits

of the projects.


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CONTINUED:

Economic Analysis consists of raw material,

level of capacity utilization, anticipated sales,

anticipated expenses and the probable

profits.

Profit is must for any enterprise because

demand for the product and sales is

anticipated.

Government

Policies is taken into

consideration in deciding about the industries

to be setup in backward areas because of

specific incentive and concessions are

given.


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2. FINANCIAL ANALYSIS2. FINANCIAL ANALYSIS

Financial analysis refers to the

assessment of the viability,stability and profitability of a

project.

Finance is regarded as lifeblood

to an enterprise.


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ASSESSMENT OF FINANCIALASSESSMENT OF FINANCIAL

REQUIREMENTREQUIREMENTI. FIXED CAPITAL are those tangible and

material facilities which purchased once

are used again and again. E.g. land &building, plant & machinery etc.

II. WORKING CAPITAL it means excess of

current assets over current liabilities. Inother words, it is a funds which is needed in

day today business operations. It is a

circulating money changing from

inventories to receivables then converted

into cash.


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CONTINUED:

Fixed Capital requirements relates to:-

cost of assets

architect and engineers fees

electrification and installation charges ofmachinery

depreciation and pre-operation expenses of

the trial runs.


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CURRENT ASSETS refers to the assets which

can be converted into cash within a year. E.g.

accounts receivables, inventories, marketablesecurities etc.

CURRENT LIABILITIES are those obligations

which can be payable within a period of one

year. E.g. accounts payable, bank overdraft,outstanding expenses.

The major goal ofworking capital is to

manage firms current assets and liabilities in

such a way that a satisfactory level of working

capital is maintained, so that the firm doesnt

become insolvent or forced into bankruptcy.


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LIFE CYCLE SEGMENTATIONLIFE CYCLE SEGMENTATION

1. Every product has its own life span.

2. A product sell slowly in the beginning, andafter promotion strategies its sales pick up.

3. In a due course of time, the peak sale is

reached, after some time the product losesits demand and dies.

4. This is called PLC that is product life cycle.

5. PLC is divided into five stages:

Introduction Growth

Maturity

Saturation

Decline


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MARKETING OBJECTIVESMARKETING OBJECTIVES

Introduction

Growth Maturity

Saturation

Decline


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MARKETING

OBJECTIVES

INTRODUCTION GROWTH MATURITY DECLINE

AwarenessAwareness

&&

trialtrial

MaximizeMaximize

MarketMarket

shareshare

MaximizeMaximize

profit whileprofit while

defendingdefending

marketmarket

shareshare

ReduceReduce

expenditureexpenditure

&&

milk themilk the

brand.brand.


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4. TECHNICAL FEASIBILITY4. TECHNICAL FEASIBILITY

It implies to mean the adequacy of proposed plantIt implies to mean the adequacy of proposed plant

& equipment to produce the product within the& equipment to produce the product within the

prescribed norms.prescribed norms. It is basically the terms and conditions or theIt is basically the terms and conditions or the

norms within which the product is to be produced.norms within which the product is to be produced.

In case if project requires any collaboration thenIn case if project requires any collaboration then

the terms and conditions of the collaborationthe terms and conditions of the collaboration

should be known.should be known.


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THESE ARE SOME INPUTS COVERED

IN THE PROJECT WHICH MUST BE

CONSIDERED ASSESSING THETECHNICAL FEASIBILITY

Availability of land and site.

Availability of water,power,transportfacilities etc.

Availability of servicing facilities.

Coping with anti-pollution law.

Availability of work force as per requiredskill.

Availability of required raw material as perquantity & quality.


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THANK YOU.THANK YOU.

Project Appraisal - Sbm

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