Documents required for Project Report
1. Application form.
2. List of total movable and immovable Assets of the promoters and liabilities (Means report of promoters/guarantors).
3. Income Tax and Wealth Tax details of last three years, with copies of Assessment.
4. Registration Certificate as SME or otherwise from the concerned District Industries Centre.
5. Memorandum of Articles of Association and Certificate of incorporation (in case of Company).
6. Registration with the concerned department such as Tourism Department, and the license for eating house in case of Hotel Industry.
7. Permission/license from Competent Authority (in case of Textile, Drugs, Foods etc.).
8. Details of power requirement and tie-up with State Electricity Board.
9. Permission from Pollution Control Board.
10 Detailed project report incorporating/covering following aspects:
a) Introduction about the promoter, giving his/their complete Bio-data(i.e. age, educational and professional qualification, Past experience, Present activity)
b) Manufacturing process. All operations, which are to be carried out from the Raw Material stage to be finished stage, are to be explained in detail.
c) Market demand, market supply, competitors.
d) Installed capacity of the plant, capacity utilization, during the entire period of loan say five to seven years.
e) Complete details about the land and building (sale deed of land, land use orders/approved plan of building/estimates of construction expenses by the engineer/Architect.
f) Details of the Plant Machinery along with quotations from suppliers.
h) Cost of the project/Means of finance as under :
Cost of project:
Plant and Machinery
Misc. Fixed Assets
Margin on Working Capital Means of Finance
Subsidy (if applicable)
Special Capital Assistance (capital subsidy or seed capital)
i) Calculation of Depreciation:
j) Calculation of Interest and Repayment of Term Loan along with working of DSCR.
1. The cost of production and profitability statement for the loan repayment period covering All annual expenses (e.g. raw material,direct/indirect labour,power, repair-maintenance other Utilities, Administrative expenses, Salaries, Selling expenses, packing and forwarding expenses etc). (five/seven years):
k) Projected Balance Sheet: l) Working of Break Even Point:
m) Fund flow statement
n) Working capital requirement, showing the margin on working capital and Bank finance required. Items considered for working capital are:
o Raw material stock
o Finished Goods stock
o Work in process o Bills receivable
o Working expenses
Project Report is the long-term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of its sponsors. Usually, a project financing structure involves a number of equity investors, known as ‘sponsors’, a ‘syndicate’ of banks or other lending institutions that provide loans to the operation. They are most commonly non-recourse loans, which are secured by the project assets and paid entirely from project cash flow, rather than from the general assets or creditworthiness of the project sponsors, a decision in part supported by financial modeling , see Project finance model. The financing is typically secured by all of the project assets, including the revenue-producing contracts. Project lenders are given a lien on all of these assets and are able to assume control of a project if the project company has difficulties complying with the loan terms.
Generally, a special purpose entity is created for each project, thereby shielding other assets owned by a project sponsor from the detrimental effects of a project failure. As a special purpose entity, the project company has no assets other than the project. Capital contribution commitments by the owners of the project company are sometimes necessary to ensure that the project is financially sound or to assure the lenders of the sponsors’ commitment. Project finance is often more complicated than alternative financing methods. Traditionally, project financing has been most commonly used in the attractive (mining), transportation, telecommunications, power industries as well as sports and entertainment venues.