“Well Begun is half Done” -- Aristotle
Project preparation and Appraisal
Though every business is ultimately run on the ground, it’s the strength of the financial papers and its presentation which helps investors and bankers make their mind regarding extending exposure to the firm.
We undertake comprehensive feasibility study of new project of our clients by discounting future cash flows and advising clients on the viability of their investments. We also suggest remedial changes in the project if it is a negative NPV project. We also provide services to prepare Detailed Project Report for our clients. Our proprietary financial modeling tools and templates coupled with our knowledge makes our project report stand out among its peers.
Before we formulate a project for our clients the questions we initiate are:
What for: - The objectives of the project
How: - The process, and the internal and external resources
Who: - For whom, By whom – Project partners, stake holders
When: - The time factor
Where: - The location
What: - The activity
We at Aakkam Corporate Solutions follow a systematic approach in a project preparation which involves the following steps:
Project Need Analysis
The factors we consider under project need analysis are the problem, solutions, beneficiaries and decisions. The problem exhibits an immediate intervention. The focus is to identify the beneficiaries. The solutions are based on the original problem. The decision to take up the project lies on how these three factors problem, solutions and beneficiaries are important to project intervention.
Problem formulation and Statement of the Problem
The crux of the project lies in the problem formulation process. We do a detailed research of the problem, scope; intervention areas and the out come of the project to be hypothesized. The macro level objectives and micro level objectives are separated to give differential wastages.
Based on the anticipated goals and objectives the project planning is prepared. Aakkam’s effective planning gives proper direction in the implementation of the project and it further helps in adequate monitoring and evaluation. For the implementation of plan, we prepare an activity chart. The activity chart consists of all the proposed activities in the implementation process, including the start date, calendar for the entire project, dates of monitoring and evaluation periods, finishing stages, series of out puts, slack time, and responsible person to coordinate the activities etc.
The project budgeting phase is in the project formulation phase. Two types of budgets will be made. The prior one is the cost category budget (materials, administration, capital; expenditures etc) and the later is the activity budget. This project budget is to calculate the cost of each project out put keeping in mind the cash flow of the project, considering the contingencies. The estimation of the project cost shall be made on fairly realistic sense of financial values. In the multi year projects the inflation rate is also anticipated in advance.
Feasibility of the Projects
Under the feasibility we consider the following steps:
# - Management Appraisal
# - Technical Feasibility
# - Financial feasibility
# - Commercial Appraisal
# - Economic Appraisal
This is the period in which all the activities that are planned in the initial phases of the project get materialized through operation. Here we schedule the activities one by one and establish functional relationship of the project activities in the fulfillment of the project.
Monitoring and Evaluation
Monitoring is the process of observing progress and resource utilization and anticipating deviations from planned performance. Correction, re-planning and cancellation of the activities are the control actions expected from this phase in order to get the expected outcome. The monitoring is periodical by fixing milestones in the project phases.