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Project Feasibility

WHAT is Project Feasibility?

  1. It’s a third party professional look by a person or team with multi-disciplinary expertise at a proposed business venture
  2. Among other things, it includes:
    • An understanding of the local economy and the role the business idea will play in the same
    • -An analysis of the market and the ways the business will achieve targeted revenues
    • The production process or an explanation of the inputs or contributions in the elements that go into the business
    • A methodology on the land, building, machinery and other resources required to set up the project
    • The capital structure - that is the way money will be raised to run the project
    • The financial projections - these are our forte
    • Supporting documents for the historical performance of the promoters and all the other aspects explained in the report
  3. It is unbiased and considers multiple scenarios of possible outcomes

WHO NEEDS a Project Feasibility Study / Report?

  1. Businesses applying for a loan (finance facility) from a bank or financer
  2. Businesses wanting to understand the effect of their present plans of capital expansion or restructuring on the future profitability, performance and financial position
  3. Businesses merely wanting to know what the future holds for them
  4. Those planning to carry out a valuation of their businesses (financial projections are a part of the business valuation process)

WHY Should a Project Feasibility Study be Presented as a Report?

Businessmen speak different languages, but financial statements speak only one language – the language of money.

As the old adage goes: Money is a matter of functions four; a value, a measure, a standard, a store.

Project feasibility is best presented in a manner that the reader understands. And traditionally, readers are trained to read the project reports in a particular format.

Although new patterns are emerging, it is still recommended to stick to the basics and present a project’s feasibility study in a traditional report format.

WHEN is a Project Feasibility Study / Report Required?

WHY should I choose Prudential Auditing to carry out a Study of my Project’s Feasibility or Report on it?

WHO conducts Project Feasibility studies and prepares Reports?

WHERE is this service available?

This service is available throughout the world.

However, it is carried out remotely from UAE (United Arab Emirates). If required outside UAE, then all travel arrangements are to be made / reimbursed by the client and time spent is paid at time used / wasted and is not fixed to the engagement.

How much does it COST to Study a Project’s Feasibility / Prepare a Feasibility Report?

SMEsOnly Calculations – Detailed →USD 4,000
SMEsComplete Study / Report – Complex → USD 3,500 per section
TSEsOnly Calculations – Simple →USD 2,000
TSEs Complete Study / Report – Simple →USD 2,000 per section
SPRs Complete Report – for Subsidy Projects →USD 1,500 subject to conditions
VLSIs Only Calculations – Detailed → USD 5,500 and above
VLSIs Complete Study / Report – Detailed →USD 5,500 and above per section
PSFs Tiny Reports – Frivolous →USD 500 and above

[SME = small and medium enterprises; TSE = tiny enterprises; SPR = subsidy projects; VLSI = very large scale enterprises; PSF = project reports submitted as a mere formality]

Primary →Financial Feasibility 
Secondary →Market FeasibilityProduction Management
 Fixed Asset ProcurementHuman Resource Planning
Tertiary → Introductions, Document Compilation & Complete Presentable Report Preparation

For more information on how fees, in general, are calculated in detail, Read More

  1. The fee for studying and reporting financial feasibility of a project is USD 200 per hour. It’s simply a function of the time required to prepare a report.

    When the nature of business becomes simpler and the scale of its operations contracts, the time required to study it reduces. So the fees reduce.

  2. We recommend that you use your in-house expertise to prepare all other sections of the report and rely on us solely for preparing the project feasibility study. Click here to know how we make your project report – and use it to prepare it yourself.
  3. One session of telephonic explanation / explanation by email to the banker is included in the fee. All additional explanation will be charged an additional fee of USD 200 per hour.
  4. One visit to a financer in UAE is included in this fee. All additional visits will be charged an additional fee of USD 250 per hour.
  5. All modifications to the project report will be charged at USD 200 per hour.

    If the original report is already printed and the modification is to be reprinted, then proportionate additional fee will be charged for printing the modified report too.

  6. Two printouts of the project report are included in the fee. All additional printouts will be charged USD 1,000 per set. Yes, it does take around 5 hours to print and file one report.
  7. For engagements out of station, i.e., out of UAE, all expenses will be charged at actual. Time will be billed irrespective of whether the project reviewer is engaged in working on the project or in travel or waiting or any other purpose, subject to a maximum of 10 hours a day, provided that if more than that time is spent in actual working or waiting or travel, then such extra time will be charged.
  8. To know more about the fees for preparing project reports, feel free to speak to any of our team members.

What service ENHANCEMENTS or DISCOUNTS are Available?

  1. A discount is available for the reports being submitted to specific state sponsored entrepreneurship development funds.

    The tacit understanding is that we will charge a fee of between AED 5,000 and 10,000 for a project report in UAE, which includes the financial calculations and compiling of the report on the basis of all other information provided by the promoter.

    This does not include the fee for collecting information for the other sections of the project report. This also does not include the fee for meetings and physical visits. This discounted fee will be revoked in entirety – and normal fee charged – if the project is presented for funding to any other financial institution or commercial bank.

  2. The service is already a premium service and no further enhancements are applicable.

How much TIME does one need to Study a Project’s Feasibility or Report on it?

  1. If all information is available, it takes about 20 hours to work out the detailed financial projections. Which is why, at USD 200 per hour, the fee is about AED 4,000.

    Since the work requires concentration and is strenuous, it is executed in about 5 to 7 days spread over a fortnight.

  2. Collecting information, analysing it and reporting on the secondary sections takes about 20 hours each.
  3. Merely printing out all sections to compile in a report format takes about 4 hours each time. Which is why, printing additional reports is charged up to USD 1,000 per copy.

    However, this is applicable only for complete reports. Multiple copies of only financial calculations / projections may be provided without any additional fee.

    However, this fee is rarely required. Since we provide soft copies (including workings in spreadsheets) to the client in entirety, he is free to ask his administrative assistant to replicate the file from the available information, matching the extra one that we have provided.

  4. Most project feasibility studies can be standardised in the above manner. However, some studies are complex. The time required for them cannot be precisely estimated and runs for month.

    • For example (i): new cement plant – Read More

      We carried out a detailed study for setting up cement plants in UAE, Oman and Iran. That required days upon days of visits and discussions that went much beyond the primary and secondary areas that are studied for a normal project.

      To elaborate some odd jobs further: (a) coordination with geological authority to obtain mineral maps to identify areas in close proximity to the raw material sources (all raw materials) (note that it is more economical to move raw material than finished product, although a third of the raw material turns to thin air), (b) coordination with local authorities to identify large plot of open land in the vicinity of the raw material mines, (c) identifying clear corridors for haulage right up to the export point, (d) clearances of environment control and other authorities, (e) acquire private property that is an impediment to the project and such unexpected matters.

    • For example (ii), we visited Ethiopia and South Sudan to evaluate setting up of a mining operation. This too, was different, as it required coordinating with local authorities like above.

    • For example (iii): an airport asphalting project – Read More

      We helped calculate the aggregate procurement for an airport project. This requires an interesting approach and an equally interesting solution. A typical crusher produces 35% crushed sand (5mm or 0-6mm or 3/16”), 25% fine aggregate (10mm or 6-12mm or 3/8”) and 40% coarse aggregate (20mm or 12-22mm or 3/4") besides other sizes in a linear manner.

      But the requirement of the airport is not linear. They need more coarse aggregate and sand in the initial stages and more fine aggregate and sand in the final stages. Stockpiling the aggregate is not only a cost, but having a 50 ton equipment running over the stockpile multiple times and the sheer weight of a 100,000 ton stockpile crushes the grains at the bottom and renders it contaminated and defective, practically unusable. Besides that, the cost of transporting aggregate is more than the cost of procuring it, so if inventory is held at the destination, it more than doubles the inventory holding cost and makes waste disposal exceedingly costly.

      And in all this, the material to be used needs to be of the highest quality. So ordinary aggregate that has higher water absorption or is shapeless (beyond the acceptable flakiness and elongation standards) and with a high abrasion rate are not acceptable for the project.

      So, over a period of 3 years, which the airport was expected to take to construct, we planned an elaborate method of using three different export points, a single destination with over hundred individual stockpiles strategically located with due consideration to the timing of production of requirement and the relative costs involved.

    • For example (iv), an international cement and readymix acquired a local plant. They wanted to know the ideal material (3 kinds of materials available locally) and the most economical and next economical route (the material is available from 6 different regions, between 60 and 120 kms away on different routes) that was plotted for them on a map and precise information for about 135 suppliers including their contact details, production capacity, product quality, prices, transport costs and in short a complete database to source their main raw material was provided.

  5. For more information on how much time it will require to study the feasibility of your project, please feel free to contact the feasibility study team.

WHAT INFORMATION is required to Study a Project’s Feasibility and Report it?

The precise requirement differs from project to project. You may like to read this summary concurrently with how we make your project report. But a broad outline of the required information (all copies) can be summarised as below Read More

  1. Promoters Read More
    • Passport / other identification document
    • KYC documents – utility bill / tenancy contract / home ownership paper
    • Bank statements for 6 months
    • Tax returns for 3 years
    • Net worth statement
    • LinkedIn profile / detailed resume / Curriculum vitae
    • Achievements / Accolades / Awards
    • An elaborate note – how the promoter came up with the project’s plan / background
    • An elaborate note – why the promoter is suitable to execute the project / foreground
    • All information that helps strengthen the bond of the promoter with the project
  2. Company Read More
    • Incorporation certificate / valid trade license
    • Memorandum and articles of association / partnership deed
    • KYC documents - utility bill / tenancy contract / office or factory ownership paper
    • Bank statements for 6 months
    • Tax returns for 3 years
    • Audited financial statements for 5 years
    • Corporate brochure
    • Certifications like ISO / Accreditions / Memberships / Awards
    • CSR (corporate social responsibility) initiatives
    • Logo in soft copy
  3. Product Read More
    • Main products
    • Photographs with descriptions if possible
    • Production capacity / volume traded or produced
    • Trend for past 5 years
    • Projections for next 5 to 9 years - how existing capacity can be better utilised
    • Product brochure
    • Production / manufacturing process
    • Principal inputs
    • Certifications / special features / recognitions
    • Special characteristics
    • Other information that can be highlighted
  4. Project Read More
    • Plan that is intended to be carried out
    • It's impact on various facilities, production, revenue and other factors
    • All relevant details - this information changes with each project
  5. History Read More
    • Changes in name / ownership / location / key management / logo / brand name
    • Improvements in marketing strategy / products / production facilities
    • Financial history besides that covered in (b) above
    • Graphs and tabular presentations of important landmarks
  6. Market research Read More
    • Strategic location advantage in the country and region
    • Industry position worldwide, domestic and regional
    • Company's position in the industry
    • Market segments targeted, covered and not covered
    • Market size and company's penetration
    • Competitors and their market penetration
    • Justification of future demand
    • Flexibility of commencing alternative product strategies in times of contingency
    • Other factors determining, propelling and restricting demand
  7. Customers Read More
    • Key customers - logos, names, addresses, contact persons, products catered
    • Prequalification as suppliers to prestigious customers
    • Prestigious ongoing contracts in hand and future contracts expected
    • Volume of business targeted in future and trend of business executed in the past
    • Credit terms and historical realisation history
    • Other indicators of continuity of business and risks that may be encountered
  8. Manufacturing process Read More
    • Process flow chart
    • Quality control parameters
    • Photographs of processes being carried out
    • Relevant information - this will change with every kind of project
  9. Procurement Read More
    • Key suppliers - logos, names, addresses, contact persons, products supplied
    • Prequalified prestigious suppliers
    • Ongoing contracts in hand and future contracts expected with prestigious players
    • Volume of supplies expected in future and trend of business executed in the past
    • Credit terms and historical payment history
    • Other indicators of continuity of supply and risks that may be encountered
  10. Human resource - existing Read More
    • Organisational chart
    • Resumes of key management personnel
    • Highlights
  11. Human resource - projected Read More
    • Organisational chart
    • Resumes of key management personnel
    • Highlights
  12. Assets – existing Read More
    • List of assets -; extract of asset register
    • Land -; map, layout, title deeds, lease deeds and other relevant information
    • Building -; layout, specifications and other highlights
    • Plant and machinery -; specifications, size, production capacity, power consumption, etc
    • Furniture and equipment -; list and general details
    • Vehicles -; list specifying procurement, production, sales, administration & management
    • Other facilities neatly listed out by value and utility
    • Financial assets and intangible assets
    • Investments, trademarks and other rights
    • Mortgages and other covenants executed on the assets
    • Bills of each major asset
    • Valuation report -; preferably third party independent valuer
    • Photographs of facilities
    • Other relevant information on the assets
  13. Assets – proposed Read More
    • As much information as possible as listed in the paragraph for existing assets
    • Quotations from about 3 suppliers for each major asset
    • Specific details like Bill of Quantities for Building
  14. Funding Read More
    • Amounts required - term loans / working capital loans / vehicle loans
    • Moratorium required and rate of interest considered
    • Schedule of erection vis-à-vis disbursement schedule for the loans
    • Schedule of repayment
    • Existing arrangements
    • Promoters' estimate of repayability and exit plan
  15. Collateral Read More
    • Primary collateral offered - with documents to title
    • Secondary collateral offered - with documents to title
  16. Point #p for being Prudential…… if you like the proposed extent of details that we would be covering, appoint us to study your project.

How do we MAKE YOUR Project Report?

It is not necessary to be a chartered accountant to prepare a project report or study it. Any person who can present the entire business plan appropriately and adequately would suffice.

In this section, we explain in elaborate detail how we present your project report. A bonus tip – you may use it to compile your project report by yourself.

We have taken – as an example – an existing manufacturing facility that is going into an expansion of facilities with the same line of products. All projects are unique, with manufacturing projects being among the more elaborate ones, we believe this is a good enough representation to cover the basics.

  1. What came first – the hen or the egg? It’s difficult to imagine whether you should gather the information first or start preparing the file first.

    When we gather the information, we already know in our mind how we’ll be compiling it – we visualise the end result – here we familiarise you with the final product first (like showing you a photo of a man on the Mount Everest) and then begin guiding you from the treadmill to the Everest base camp.

  2. Our goal – the index

    The first page is the index of contents. As a sample, check these out:

    Now that we know what your end result will look like, let us take you through the process of how we gather the information and place / present it in the file – that becomes your report.

    You may also browse what information is needed to prepare a report.

  3. Before we start – the file

    We get a file – your report will be a file full of pages upon pages of printouts and photocopies. We obtain a thick box file to hold about 500 pages.

    We get a basic index – and file separators – the information is divided into 10 broad sections.

  4. d)The simplest part first – Banker’s Notes (Section 1)

    We keep the first part blank for the banker / financer. They need to write their own notes, compile their own observations and then note down their approvals and other process. It makes sense to dedicate a portion of the file to them.

  5. The most difficult part next – Curtain Raiser (Section 2)

    It’s tough to be precise and concise simultaneously.

    Part 1 – the Executive Summary

    In between half a page to at the most a full page, is an ‘elevator speech’ of the project. (Read More to know what an elevator speech means.)

    An elevator speech is a simple concept. Assume you have been thinking hard about approaching a particular large company for becoming their supplier and you suddenly happen to bump into their CEO in an elevator – just you and him. You now have about a minute to speak to him and in that minute, impress him to such an extent that he should invite you over for a meeting – or at least agree to meet you – or perhaps simply remember you from this incidence when you meet him next. So, write something powerful enough to motivate the reader to go through the remaining file.

    In general, we mention the following Read More

    • When the company started and what level of revenue / production it has reached by now - highlight its strengths
    • Existing production facilities and the bottlenecks faced - highlight the weakness
    • What it needs to do now - i.e., expand, as per this example - highlight the opportunities
    • The physical characteristics of the expansion - like size of building, production facility or other measurable numbers
    • We monetise the information - i.e., spell it out in clear monetary numbers
    • Total project value, the promoters' contribution, the expected finance facility, repayment schedule with moratorium, primary security and collateral security

    Part 2 – the Synopsis of the company

    This may spread out to 2 or 4 pages. We mention – in summary points – various information that would be appearing throughout the rest of the project report.

    Read More

    For example:

    1. Company
      • Commencement
      • Highlights
      • Corporate philosophy
    2. Shareholding
      • Constitution
      • Promoters and their shareholding
      • Capital infusion
      • Retained earnings
    3. Production facilities
      • Land and factory building
      • Main machinery
      • Main facilities
      • Volume of output possible and achieved
      • Volume of production outsourced (to show the excess demand)
    4. Products
    5. Certifications
    6. Market - sales information
      • Key customers
      • Key regions
      • Proposed customers or regions or products
    7. Key personnel
    8. Existing facilities (borrowings)
    9. Proposed project
      • Land and buildings
      • Plant and machinery
      • Other facilities
    10. Proposed cost of project
    11. Proposed funding requirement
    12. Proposed funding schedule
    13. Primary and collateral security
    14. Revenue generation and profitability of the proposed project
    15. Serviceing of the facility
      • Payment of interest on the borrowed amount
      • Repayment schedule of the capital amount borrowed
    16. Other important aspects not covered in the above
  6. The simpler parts – Introductions (Section 3)

    These introductions are – in a way – simple. They can be prepared by any undergraduate. The skilful part is connecting them to the company and to the project at hand.

    Many a project preparer wonders why it is even necessary to provide these introductions. Doesn’t the banker, who is already financing a couple of projects of a similar nature, already know of these relationships between the country and the industry? Well, they know. But by mentioning this in the project, we get to tell them how well you know about it – and that is an important consideration for the funding party.

    We prefer writing a couple of pages on each topic with maps, charts and graphs of all sorts. And we summarise the matter as a small index at the beginning of the section, so that if one doesn’t go through the rest of the section, the index itself becomes sufficient for the reader.

    Read More

    Part 1 – the Country

    Mention keeping in mind the correlation to the industry and the company:

    • The economic growth or other parameters of the economy
    • The role of the industry in that growth or how that growth affects the industry
    • The strategic location of the country or its place in the world economic map of that industry

    Part 2 – the Industry

    Explain the industry scenario, keeping in mind that almost every industry has a global equivalent, a regional sector – like manufacturing / trading or wholesale / retail – and peripheral service providers for logistics, trade associations and main products in the overall industry.

    Highlight the sector in which the company plays a major role.

    Part 3 – the Company

    Explain briefly:

    1. Highlights
      • Summary information
      • Proposed project
    2. Promoters (yes, repeat it, a reader doesn't go through each and every page)
      • History of achievements
      • Current thought process
      • Future outlook
    3. Proposed project
      • Main intention
      • Limitations being overcome
      • Expansions being sought
      • Opportunities
      • Other highlights

    Part 4 - the Promoter
    Explain briefly:

    1. Promoters - history
      • Their qualifications
      • Their past experience
    2. Promoters - present
      • Their role in the company
      • Their passion
    3. Promoters - future
      • The plans
      • The steps they are taking to achieve the plans
      • Their vision
  7. The known part – the Company (Section 4)

    No one knows your company better than you. It’s your responsibility as well as an opportunity to showcase it.

    Depending on your ability to gather information and our ability to present it, using descriptive text, charts, graphs, tables, comparisons and such tools, give adequate information.

    Read More

    For example:

    1. Brief history
      • Ownership history
      • Financial highlights (capital inflows, debt trends, revenue improvements, growth in assets, personnel growth and other key areas)
      • Quality management
      • Core philosophy
    2. Certifications, accreditions and accomplishments
      • Broad classification of the above, wherever relevant
      • Small list a detailed list can be presented in the main section for this
    3. Products and technology
      • Photograph and description of each major product
      • Product write-up
      • Product Brochure if available
    4. Manufacturing process for service industry or traders, give such process as possible
      • Design, research and development
      • Machining
      • Assembly
      • Testing and inspection quality control
      • Finishing
      • Marking and packing
      • Project management
      • Representative flow chart
    5. Quality assurance
      • Testing
      • International / market conformity
    6. Materials used in the production process raw materials / inputs
      • Items, quantity & quality
      • Suppliers, volume & location
    7. Market analysis
      • Sectoral segmentation
      • Geographical classification
      • Product-wise distribution
    8. Financing history
      • Facilities availed in the past and their repayment history
      • Existing facilities and their terms
      • Copies of facility allotment letters
      • Financial performance key performance indicators highlights
    9. Key performance indicators analysis of last 5 years if available
      • Trend analysis
      • Ratio analysis
    10. Facilities available and other techno-commercial information
    11. Key customers, annual sales trends to them, average receivable position
    12. Key suppliers, annual purchase trends from them, average payable position
    13. Advisors for the company
    14. SWOT analysis strengths, weaknesses, opportunities & threats

    Like photographs are used for products and assets, use company logos for customers, suppliers and advisors and give contact details of the account managers there.

    Yes, we agree that it is likely that no one would read the roughly 2025 pages of content that you accumulate here, but it is a helpful exercise without an iota of doubt and should not be avoided for paucity of time or resources.

  8. The main purpose of this report – the Project (Section 5)

    We describe the project elaborately. Every question that might come to the banker is presented here.

    It is pertinent to note that your relationship manager or the credit officer is normally merely collecting information as per guidelines given to him. This information is later passed on to a technical analyst, a finance expert and a team of other people within the bank. So the information should be available in this section to answer all of their doubts.

    And if this information is not available, crucial time is lost in them asking questions, you answering them and then them analysing the same again. This waste of time needs to be avoided by making this section strong with information.

    Read More

    They would like to know a lot, so we include:

    1. Strategic plan
    2. Areas being addressed by the project (the expansion, in this example)
      • Increase in floor space
      • Increase in production capacity
      • Better location of facilities to improve performance
      • Other advantages of having more space and better utilisation thereof
    3. Land and building - usually among the largest investments
      • Dimensions and layout
      • Floor plans and utilities
      • Cost
      • Submission plans and approvals from authorities
      • Contractor's profile
    4. Plant and machinery - usually among the largest investments
      • List and valuation of existing machines
      • List of machines being acquired
      • Quotations from suppliers
      • Installation cost
      • Power and other requirements for the machines - this is useful for other sections
    5. Equipments being acquired
    6. List of vehicles
      • Existing vehicles
      • Additional vehicles being acquired
      • Separately identify for procurement, production, deliveries, administration, management
    7. Personnel
      • Organisational chart
      • Reference to CVs in another section
    8. Other resources being deployed for the project
    9. Set-up period and phase over period
    10. Funding requirement and repayment plan
    11. Primary security - include documentary evidence
    12. Collateral security - include documentary evidence
    13. Any other relevant information
  9. Our expertise - financial projections(Section 6)

    This is what is colloquially referred to as the “Project Report” but as you can see, it is merely one section of an overall project report, albeit (a) among the most important because the banker will read this in most detail and (b) because we are expected to have better expertise than you in preparing one.

    It has always been presented in a fairly similar format. There are other formats available, like the traditional CMA Data Format. And some presentations are simple while some are complex. But they essentially present the same information. And financers analyse the same set of parameters and infer the same analysis.

    Depending on the nature of the business, the scale of its operations, the life of the underlying assets and the repayment schedule, the financial projections should be for 8 years. This includes:

    • 3 months - project study phase
    • 9 months - set-up period
    • 1 year - repayment moratorium
    • 5 years - repayment
    • 1 year - loan-free period

    However, the number of years may be adjusted depending on the comfort of the financer.

    The financial projections are based on an analysis of your past performance, the performance of other companies in the industry with a similar scale of operations and the other information gathered by you (or us) that contributes to this performance.

    Read More

    We would include:

    1. Cost of project and means of finance
    2. Projections of performance and profitability
    3. Projected financial position
    4. Projections of net working capital requirements
    5. Projected cash flows
    6. Ratio analysis
    7. Assumptions - for cost of project and means of finance
      • Land
      • Building
      • Machinery & equipment
      • Furniture, fixtures & office equipment
      • Motor vehicles
      • Non-current financial assets
    8. Assumptions - for performance and profitability
      • Revenue (Sales)
      • Cost of sales
      • Raw material consumed
      • Staff costs
      • Other direct costs
      • Other operating income
      • Selling expenses
      • Administrative expenses
    9. Assumptions - working capital components
      • Inventories
      • Receivables & prepayments
      • Trade payables
    10. Calculations based on assumptions
      • Financial expenses - interest and repayment schedule
      • Provisions for recruitment costs, leave pay, leave travel and end-of-service gratuity
    11. Depreciation - fixed assets schedule

    For examplesof how these are prepared by us, click here.

  10. The key documents – Company documents (Section 7)

    These KYC documents might already be available with your bank. But your regular relationship manager has them. It is not fair to expect that the other officers in the head office of the financer would have immediate access to them. To save their time and effort – and to avoid adding to their annoyance – it is recommended to attach them again.

    Read More

    These would include:

    1. Company documents
      • Incorporation certificate
      • Trade license
      • Memorandum and articles of association / partnership deed (complete set)
      • Chamber of commerce and other memberships
      • Resolution by the board of directors to carry out this project
    2. Shareholders' documents
      • Passport copies, unique IDs and memberships
      • Utility bills
      • Brief resumes - CVs
      • Bank statements
    3. Register of members of the Company
  11. Information about the key investment – land, building and machinery (Section 8)

    These form the primary security of the bank. The suppliers of these are going to be the recipients of money from the bank. And these are the entire subject matter of this report. So, these are very important.

    Read More

    These would include:

    1. Land
      • Ownership papers / lease deed
      • Map showing location
      • Map showing dimensions and layout
      • Valuation report
    2. Building
    3. Layout drawings
      • Contractor's certified estimate, contract and BoQ
      • Valuation report for existing building
    4. Machinery
      • Proforma invoices
      • Contract with installation contractor
      • Installation layout
    5. Other information
  12. The most important asset – Personnel (Section 9)

    The key strength of any company is its people. We include their pertinent details here.

    Read More

    Suggested details:

    1. Highlights
    2. Organisational chart - repeat it - don't expect the reader to turn behind 200 pages to view it
    3. Statistics for growth and demographics if available
    4. List of people
    5. CVs of key personnel
      • Note: each of these may be 2-3 pages, so expect this section to be 25 pages
  13. And the financial foundation – Financial history (Section 10)

    Although these are referred several times earlier, these need to be submitted in adequate detail and in the form of readable copies.

    Read More

    They may include:

    1. Summary analysis - 5 years
      • Past statements of comprehensive income - profit and loss accounts
      • Past statements of financial position - balance sheets
      • Past ratio and trend analysis
    2. Audited financial statements for 5 years (and unaudited for the current period)
      • Note: each of these may be 25 pages, so expect this bunch to be 125 pages
    3. Bank statements for at least past 6 months
      • Note: Each of these may be 25 pages
    4. Other relevant documents
  14. And finally – make it ready for submission

    Not just Baa Baa Black Sheep, but even we need to keep 3 box files full.

    One for the banker – your relationship manager should retain one set entirely for himself

    One for the head office – earlier we used to prepare two, one each for the technical evaluator and the financial evaluator, but now-a-days they don’t prefer to do it simultaneously

    One for you – you don’t want to be peeping into their file and fumbling for papers when they ask you for details during your discussion with them

  15. Attitude – we insist that carry your attitude of a businessman while meeting the bankers. Avoid taking along the project consultant (us or anyone else). Afterall, the bank is funding you, not us (him / her).

  16. Point #p for being Prudential…… now that you know what we do, choose us.

What will My Project Report LOOK like?

It is difficult to present a complete project report as a sample. However, as of now, we are presenting how a few calculations will look like. Choose from among the ones below.

How is the Project Report of Prudential Auditing DIFFERENT or BETTER than others?

Good is not good when better is expected. So, if one doesn’t expect or need a better report, it does not make any sense to get it prepared from us.

You may check out how we prepare a project report (click here) and how some of the calculations that we have made in the past look like (click here)

It has been our experience that some bankers do not like reports that contain extensive details. So if the primary purpose is to obtain funds – and not a detailed and critical study of the successful implementation of a project – then we should not be appointed.

What DISCLAIMERS will the Project Report contain?

The persons who have prepared the project report, although experts in their respective fields, have no liability towards the project. The promoters who set up the project are wholly and solely responsible towards all financial and other liabilities created in the process. Disclaimers include:

  1. The information that formed the basis of the assumptions is provided by you and not by us.
  2. The assumptions used to make the calculations are provided by you and not concocted by us.
  3. The historical values and valuations are based on third party reports and not generated by us.
  4. The projected performance is a result of the decisions of the promoters / management and its possible outcomes and we give no assurance or guarantee that the projections will materialise.
  5. Every other disclaimer that disassociates us from the information and the results achieved.
  6. A limit for any litigation to the extent of the fees actually received by us.

Why are SO MANY QUESTIONS asked to prepare a Project Report?

GIGO – a term that evolved around the 1980s – means garbage in garbage out. Essentially used for computer applications – and meaning that if one feeds garbage to a database then it will give garbage as a result – thereby promoting feeding relevant, sufficient and accurate information to a process to derive the best possible results.

Accordingly, our questions are designed to obtain maximum information from you, out of which the best quality of data is extracted, analysed to determine that it will indeed work and then presented as your report.

How does one recognise a GOOD QUALITY Project Report?

Businessmen are smart. They bring together men, material and money to create a meaningful product or service that has a market.

They know what services to avail from the market, which people to appoint, what machinery to buy, which market to establish themselves in, what product to create and how to distribute it. They know which dish in a restaurant is good, which car is good to drive, which refrigerator or washing machine will work best at home and a host of other things that rely on multitudinous factors to reach a single decision that will last for years together.

We take a bow and let this pass – for you can figure it out and take a decision based on your best judgement – you do not need to be told which project report looks better.

What do we do with your INFORMATION?

You are protected by a non-conformity and non-disclosure clause where although we retain your information, all working papers and a copy of the final report, we do not share it with anyone else, for whatever reason whatsoever, without first obtaining your written consent for the same.

However, the market intelligence that we have acquired during the course of this engagement and all information that is freely available and does not belong specifically to you will be used by us, wherever required, with no obligation towards you.

Although we do not usually name our clients, we retain the right to use the fact that your esteemed organisation has been our prestigious client in our marketing material to brag about our accomplishments, praying fervently that people take enough interest to notice.

WHO SHOULD ideally get Prudential Auditing or any Independent Consultant to Study a Project or Prepare a Report?

  1. One whose in-house team is busy in daily matters and will not be able to dedicate a month or so required for a special project. Where in-house teams can be deployed, we advise doing that.

    The key advantage of the in-house team is that they are aware of the business philosophy of the promoters and their spending / investing psychology, so their recommendations will not surprise the implementation team when the project is being executed.

    The key disadvantage may be that one loses the opportunity to study a project differently and replicates the existing business patters - which should not be a problem if it has worked so far.

  2. One whose in-house teams are already engaged in more profit making ventures.

    Take into account a CEO and / or CFO who churn out a profit of USD 1 million per year. Their cumulative earning to the company is USD 3,333 per day (assuming 300 working days) or USD 416 per hour (assuming 8 hours a day). And all that, assuming that they actually engage in decision making throughout the 300 days of 8 hours each, which is unachievable, thereby meaning that the CEO and / or CFO is earning 4 times more - or USD 1,667 per effective hour. Where the promoters have such efficient management, it makes sense to use our secondary expertise at an eighth of the cost and let their in-house CEO and CFO review the report prepared by our team.

  3. One whose in-house team does not have the required expertise.

    Not all companies have CEOs and CFOs. Some may be family managed. Some may be technocrats. Some may have realised that they made mistakes last time, which they would not like to repeat this time - as they cost money as well as time. Overall, if one believes that our expertise would save them time and money during the implementation stage - and give a better idea of what is going to follow at the conceptualisation stage - then he / she should appoint an external consultant.

  4. Whose financer has asked for an independent feasibility report.

    Some financers prefer an independent analyst works out the feasibility and presents his / her report. It does entail additional expenditure, but it eventually makes immense sense in the long run to have a second opinion at the conception stage at a cost that is a tiny fraction of the overall project cost.

  5. We will add more examples based on the suggestions from our team, the readers of our website and our experience.

Who should NOT get their Project Report Prepared or Project Studied Prudential Auditing?

  1. Those who possess the ability to study their own project and prepare a report for the same.

    As mentioned by us often, one does not need to be an expert auditor to do it and a businessperson with effective presentation skills is adequately positioned to do it in-house.

    This includes the ability of their colleagues and consultants. We recommend using the ingenuity and enthusiasm of business management students as this works out considerably economical.

  2. Promoters who believe that project funding is the process of preparing a report that shows fantastic profitability, bribing the representative of the financer and obtain a facility that they can use in whatever manner they wish, should not approach Prudential.

    There are several problems in this approach with Prudential. And the main problem, which defeats the purpose of such promoters, is that the Prudential Team first assures themselves that the project is going to be feasible and then works on making the report presentable. If the project is not feasible, Prudential will not proceed with the report preparation.

  3. There's a difference in a perfunctorily prepared project report that is submitted for licensing purposes to most authorities - who take it as a formality and aren't interested in the actual outcomes - and that prepared for satisfying genuine funding requirements that will ultimately repay the loans.

    We have a facility to prepare such reports, which as not as elaborate or costly - that may be used.

  4. We will add more examples to this section with due experience.

You have MORE DOUBTS about Project Feasibility?

  1. Send an email to  or  about your doubts and we will get back to you at the earliest.
  2. Call up +971-55-222 4657 or +971-55-991 3324 for a quicker direct conversation on phone.
  3. Send an email to any of our projection experts on our team or call any of them on their phone numbers - their details are given in the people section of our website.

SEEK our Project Feasibility Services

  1. Send an email to  or  about your doubts and we will get back to you at the earliest.
  2. Call up +971-55-222 4657 or +971-55-991 3324 for a quicker direct conversation on phone.
  3. Send an email to any of our projection experts on our team or call any of them on their phone numbers - their details are given in the people section of our website.