06-07-2012, 11:02 AM
Entrepreneurial Finance
Entrepreneurial Finance.ppt (Size: 137 KB / Downloads: 24)
FINANCIAL ANALYSIS
The objective of financial analysis is whether
the proposed project will be able to meet the burden of servicing debt
and
the proposed project will satisfy the return expectations of those who provide the capital
Financial Appraisal
Investment outlay and cost of project
Means of financing
Projected profitability
Break- even point
Cash flows of the project
Investment worthiness judged in terms of various criteria of merit
Projected financial position
Why do a Cash Flow Forecast?
Schedule of anticipated receipts
Schedule of priorities for the payment of accounts
Significance of unexpected changes
Estimate of amount of money to be borrowed
Confidence to the owner and lenders
Clearances and Approvals
Clearances and approvals regarding land use, pollution control and safety
- interact with the local government authorities such as the municipalities/ village panchayats and state pollution control boards
Register under Export Processing Zone/Special Economic Zone (SEZ), Software Technology Park (STP), or 100% Export Oriented Unit to avail the incentives