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A PRELIMINARY PROJECT REPORT

WHAT IS A PPR ? A Preliminary Project report (PPR) or Preliminary Business plan (PBP) is a simple brief data-sheet that gives you an insight into the following: The, "amount of money, man-power and material required to set up the project The type of machines required The sources of technology The economic gains from the project In short, PPR is a brief outline of the project that tells you about the viability of the project, to help you decide whether or not it is worth pursuing further. WHY A PPR ? At the stage of preparing a PPR you may have in mind three or four ideas to choose from. Since preparing a Detailed Business Plan (DBP) or Detailed Project Report (DPR) calls for considerable time and resources, it would not be advisable to prepare a DBP for every product idea that may be floating in your mind. Even if you could draw up DBPs for all the product ideas that you are considering the time required to do so would make the first DPR obsolete or outdated by the time you complete the other DBPs. Further, the money, time and information required to prepare DBPs for all the product ideas, only to examine their viability, may make the very exercise of DBP preparation unviable. This does not mean that PPR or Preliminary Business plan (PBP) can be a substitute for a DBP. It only means that it is desirable to prepare a PBP prior to spending resources on the preparation of a DBP. There are other advantages of preparing a PPR/PBP: You obtain enough data in a short time to fill up the form required for provisional registration of your unit with the state government, It is a must before commencing various time-consuming formalities connected with planning and setting up a small-sole unit. The data you get from a PBP will help you complete certain formalities in anticipation of setting up a project. For example, if you want to set-up an electronic unit, you have to get your production programme approved by the concerned state/central government department. For this, you have to supply data about the projected production levels and raw material requirements, which you could get from the PBP/PPR [Type text]

[Type text] The data collected while preparing a PBP provides a good starting point for the preparation of a DBP, if and when desired. It will help you identify in advance the infrastructural requirements for your project, and inform the concerned government agencies accordingly, so that necessary facilities such as land/shed are made available at the right time. Finally, the major contribution of a PBP at the nascent stage of your entrepreneurial career is that it instills confidence in you and motivates you to start the time-consuming process of data collection and preparation of a DBP. HOW AND WHY DO YOU PREPARE A PPR ? To help you prepare a PPR systematically, a proforma is provided as below. A quick perusal of the proforma will indicate that information called for could be collected and presented quickly as well, as systematically.

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[Type text] PRELIMINARY PROJECT REPORT PROFORMA : 1.0 GENERAL _____________________________________________

Name of Entrepreneur : Date of Birth Project : ___________________________

: ____________________________ Age :

___________________________________________________________________ Location : __________________________________________________________________ Type of organization: Proprietary/Partnership : ________________________________ Name of firm : _____________________________________________________________ Address : ________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ 1.1 Educational Qualifications Qualificatio n S.S.C. or below Degree/ Diploma Any other 1.2 Special Training Training in Institute Duration Achievement Institut e Major Subject Year of passin g

1.3 Work Experience (Past and Present) Organization Position Nature of work Duration

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2.0 Details of Proposed Project (Manufacturing/Servicing)

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[Type text] 2.1 Machinery/Equipment S. No . 1 2 3 4 5 Descriptio n Qty. required Pric e Total Valu e Names and addresses of suppliers

Total 2.2 Production Programme S. No. I 2 3 4 5 2.3 Raw Materials S. No. 1 2 3 4 Total 2.4 Utilities S. No. 1 2 3 4 Particulars Electricity Water Coal/Oil Any Other Total Annual Requirement Total Annual Expenses (Rs) Item Total Annual Quantity Requirement s Value (Rs) Source Item/Product Total Qty. Per Year Sales Revenue Per Year Capacity Utilization

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[Type text] 2.5 Man Power (factory and administration separately) Sl. No . 1 2 3 4 Particulars Skilled Semiskilled Unskilled Office staff Total No. Total Wages & Salaries (Rs Per Year)

3.0 Market Study 4.0 Cost of the Project 4.1 Fixed Capital Sl. No. 1 2 3 Item Land/Building Machinery/Equip ment Furniture & Fixtures Total Value (Rs.)

4.2 Working Capital S. No . 1 2 3 4 4 Item Raw materials stock Semi finished goods stock Finished goods stock Bills Receivables One month expenses Total 4.3 Cost of Project S. No. 1 2 3 4 [Type text] Particulars Fixed capital (Total of item No. 4.1) Deposits Preliminary and pre-operative expenses Interest during implementation Value (Rs) Duratio n Valu e WCL WCM

[Type text] 5 6 Contingencies Working Capital margin Total

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[Type text] 4.4 Means of finance S. No. 1 2 Particulars. Term loan Own investment with Incentives etc Total Value (Rs)

4.5

Project Profitability Analysis S. No. 1 2 3 4 5 6 7 8 9 Description Sales Revenue Manufacturing expenses(2.3 + 2.4 + 2.5) Selling & Distribution expenses Factory & Administrative overheads Interest Depreciation Gross profit [1-(2+3+4+5+6)] Income tax Net Profit (7-8) Value (Rs)

5.0

SUPPLEMENTARY DETAILS

6.0

References Sl. No. Name Address Occupation

Date: Place:

Signature

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