SPARC CONSULTANTS PVT LIMITED

FINANCIAL FEASIBILITY
Introduction
Financial feasibility is required to be conducted to decide upon the
viability of the product/project in terms of funds required, sources of
funds and the bottom line with projections over a period. This needs
to be done for all projects whether they are green field projects or
expansions or acquisitions. Some of the basics steps to be taken to
arrive at the financial feasibility are listed below:

Having conceptualised the product/business line as

the first step based upon various preconceived
ideas, the business must then evaluate the viability
of the venture considered.

The prerequisite of a financial analysis is the

volume of business to be decided based upon by
conclusions of market and technical feasibility.

The accurate cost of production is then assessed

based on the cost of all inputs. Thereafter, the
operating costs are calculated over and above the
cost of production.

The project implementation cost is evaluated based

on all preoperative expenses including land,
buildings assets etc required to do business and
the also include the cost of funds required. These
elements are added to the operating costs.

The projects have to consider the repayment of

loans etc. and also reinvestment requirements
depending upon the nature of business or product.

For your ready reference, a template of working out the financial feasibility is
attached. This is required to be filled in for all products and business lines selected.

30 JANAKPURI, SECUNDERABAD 500009

www.sparcindia.co.in

Email.: partha@sparcindia.co.in

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SPARC CONSULTANTS PVT LIMITED

NOW GIVE YOUR REPORT COVERING

ENCLOSED FORMAT
FINANCIAL FEASIBILITY REPORT
GROUP NO.

PRODUCT SELECTED:

PARTICIPANTS
1.
2.
3.
4.
Your findings:

Total cost of project and means of funding

Gross turnover in first year and fifth year

PAT in first year and fifth year

Cash flow status over first five years

Current ratio from 1st to 5th year

ROR

THANK YOU

30 JANAKPURI, SECUNDERABAD 500009

www.sparcindia.co.in

Email.: partha@sparcindia.co.in

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