SPARC CONSULTANTS PVT LIMITED

FINANCIAL FEASIBILITY Introduction

Financial feasibility is required to be conducted to decide upon the viability of the product/project in terms of funds required, sources of funds and the bottom line with projections over a period. This needs to be done for all projects whether they are green field projects or expansions or acquisitions. Some of the basics steps to be taken to arrive at the financial feasibility are listed below: Having conceptualised the product/business line as the first step based upon various preconceived ideas, the business must then evaluate the viability of the venture considered.

The prerequisite of a financial analysis is the volume of business to be decided based upon by conclusions of market and technical feasibility.

The accurate cost of production is then assessed based on the cost of all inputs. Thereafter, the operating costs are calculated over and above the cost of production. The project implementation cost is evaluated based on all preoperative expenses including land, buildings assets etc required to do business and the also include the cost of funds required. These elements are added to the operating costs. The projects have to consider the repayment of loans etc. and also reinvestment requirements depending upon the nature of business or product.For your ready reference, a template of working out the financial feasibility is attached. This is required to be filled in for all products and business lines selected.NOW GIVE YOUR REPORT COVERING ENCLOSED FORMAT

FINANCIAL FEASIBILITY REPORT

GROUP NO. PRODUCT SELECTED:

PARTICIPANTS

1.

2.

3.

4.

Your findings: Total cost of project and means of funding

Gross turnover in first year and fifth year

PAT in first year and fifth year

Cash flow status over first five years

Current ratio from 1st to 5th year

ROR

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