Project Appraisal , Human Resourse
SMALL BUSINESS MANAGEMENT
LESSON 20
PROJECT APPRAISAL
Learning Objectives
Definition
• Scope of appraisal
• Steps followed in project appraisal
Project appraisal can be defined as the promoter taking a second look critically and carefully at a project as presented by the promoter person who is in way involved in or connected with its preparation and who is as such able to take an independent, dispassionate and objective view of the project in its totality as also in respect of its various components. The person who carries out appraisal of a project is usually an official from the financial institutions or team of institutional officials. Since all ending activities involve risk in a smaller or larger measure, project appraisal aims at sizing up the quality of projects and their ling term profitability aims at minimising the risk of lending by rectifying their weaknesses and improving their quality by incorporating into them features/ safeguards missed by the promoters either because of lack of knowledge or information,
Introduction
Project appraisal an exercise whereby a lending financial institution makes an independent and objective assessment of various aspects of an investment proposition to arrive at the financing decision. Appraisal exercises are basically aimed at determining the viability of a project and sometimes, also in reshaping the project so as to upgrade its viability. This is done by allocating the term finance sought by a promoter.
The factors generally considered by institutions while appraising a project included technical, financial, commercial, economic, ecological, social and managerial aspects. This makes it necessary to recognise the inter-relationship underlying the various aspects of a project. For example, the size of the initial market and the estimates for demand build-up would determine the profitability, which, in turn, would determine the means of financing.
Location also has an
LESSON 20
PROJECT APPRAISAL
Learning Objectives
Definition
• Scope of appraisal
• Steps followed in project appraisal
Project appraisal can be defined as the promoter taking a second look critically and carefully at a project as presented by the promoter person who is in way involved in or connected with its preparation and who is as such able to take an independent, dispassionate and objective view of the project in its totality as also in respect of its various components. The person who carries out appraisal of a project is usually an official from the financial institutions or team of institutional officials. Since all ending activities involve risk in a smaller or larger measure, project appraisal aims at sizing up the quality of projects and their ling term profitability aims at minimising the risk of lending by rectifying their weaknesses and improving their quality by incorporating into them features/ safeguards missed by the promoters either because of lack of knowledge or information,
Introduction
Project appraisal an exercise whereby a lending financial institution makes an independent and objective assessment of various aspects of an investment proposition to arrive at the financing decision. Appraisal exercises are basically aimed at determining the viability of a project and sometimes, also in reshaping the project so as to upgrade its viability. This is done by allocating the term finance sought by a promoter.
The factors generally considered by institutions while appraising a project included technical, financial, commercial, economic, ecological, social and managerial aspects. This makes it necessary to recognise the inter-relationship underlying the various aspects of a project. For example, the size of the initial market and the estimates for demand build-up would determine the profitability, which, in turn, would determine the means of financing.
Location also has an