Factory Detailed Project Report
Factory Project Report
Detailed Project Reports (DPRs) are the outputs of the planning and design phase of a project. DPR is a very detailed and elaborate plan for a project indicating the overall program, different roles, and responsibilities, activities, and resources required for the project.
To be more precise, a DPR is a final, preparation of detailed project reporton the project and a blueprint for its execution and eventual operation. It provides details of the basic program the roles and responsibilities, all the activities to be carried out and the resources required, and possible risks with a recommended measure to counter them.
The success of the project is measured on the basis of:
The design stage is a blueprint which on paper gives a great length and detail what has to be done to convert the corporate investment into a feasible project idea and ultimately a profit-making enterprise. The top management policy guidelines, their impact on the project life, appraisal in terms of financial viability are dealt with in great detail. The DPR is the basics of specification, contract drawings, detailed technical feasibility, financial feasibility, execution of the project from a practical point of view. The DPR should also highlight the nature of inherent risks in the project & potential external risks that will influence the outcome of the project. Also, the DPR should give the measures for risk management and risk mitigation.
The main sub-division in a DPR is:
1) Plant capacity
2) Manufacturing procedure adopted
3) Technical know-how/ tie-ups.
4) Management teams for the project.
5) Details of land, buildings, and plant and machinery.
6) Details of infrastructural facilities (power, water supply, transport facilities, etc.)
7) Raw material requirement/ availability.
8) Effluents produced by the project & treatment procedures adopted.
9) Labour requirement and availability.
Schedule of the implementation of the project.
Project cost.
Means of financial projects.
Working capital requirement/arrangements made.
Marketing and selling arrangements made.
Profitability and cash flow estimates.
Mode of repayment of loans.
Government approvals. Local body consents and statutory permissions.
Details of collaterals security that can be offered to the financial institutions.
Preparation of DPR
The preparation of DPR requires a wide variety of expertise. A number of decisions are mutually related. For example, the requirement and training plan is dependent on the nature of the technology, availability in the general employment market in the region, need for foreign collaboration and training, the extent of specialized plant and equipment supplied from abroad, etc.
Financial requirements are dependent on the time schedule for the implementation of the project. The nature of the issue to be included in the commercial terms and conditions depend on the extent of the spread of the contractors. If only local and regional parties are in the picture, the scope and jurisdiction for disputes get restricted.
A number of issues largely depend upon managerial perceptions and top management policies. On the whole preparation of DPR is a complete task. Therefore highly specialized agencies have come up in different areas, who undertake such tasks for the clients.
They are usually known as technical consultancy organizations. They specialize in some particular field. For example, Dastur & co specializes in metallurgical industries, Engineers India Ltd. specializes in oil sectors.
Even for medium-sized projects, it is necessary that a capable consulting firm is entrusted with the task of formulating the DPR.
As a professional corporate services company, we provide financial due diligence, overseas corporate compliance services, international tax consultant, etc. For more information, please feel free to contact us!
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