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Top Industries in India Where Feasibility Studies Are Most Critical

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  A feasibility study becomes most important when a business requires large capital investment, specialised machinery, regulatory approvals, uncertain demand or significant debt funding. In these projects, discovering a major problem after construction or machinery purchase can be extremely expensive. Industries such as manufacturing, food processing, renewable energy, healthcare, hospitality and infrastructure therefore benefit from testing technical, market, operational and financial assumptions before committing capital.  Sharda Associates supports the financial side of feasibility analysis through CA-expert-led assessment of project cost, means of finance, revenue assumptions, working capital, cash flow, break-even and repayment capacity, while specialist technical inputs should be obtained wherever required. Which Industries Need Feasibility Studies the Most? There is no rule that only large businesses need feasibility studies . A ₹50 lakh project can require serious ana...

How Banks Verify Customer Letters of Intent (LOIs) in a Project Report

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  Although a customer Letter of Intent (LOI) is not always regarded as a guaranty of future revenue, it can bolster a bank loan project report by demonstrating possible demand for the suggested good or service. Before determining how much weight to give the LOI, a bank may compare it with the applicant's sales forecasts, production capacity, current customer data, orders in hand, and other business evidence. Sharda Associates uses customer LOIs as supporting information in CA-expert-led project reports where relevant, but projected sales should still be based on realistic financial and operating assumptions rather than assuming that every LOI will become a completed sale. What Does a Customer's Letters Of Intent Actually Prove? Suppose you are planning a new manufacturing unit and a potential customer gives you a letter stating: “We intend to purchase approximately 10,000 units annually, subject to price, quality and commercial terms.” That is useful. It shows there may be ge...