What is TEV Study ?
- An entrepreneur/ industrialist desirous of setting up of his own industry has to perform multifarious activities in a logical sequence.
- Setting up may be new or an addition to the existing unit.
- He has to arrange finance for setting up of new industry or addition to existing unit.
- He has to obtain finance from the Bank / FIs. or from the market.
- Before obtaining finance from the Bank, the Bankers will conduct TEV study.
- Setting up of unit involves the following :
- Selection of a product
- Market Study
- Preparation of Project Feasibility Study
- Technical Appraisal
- Economic Appraisal
- Preparation of Project Report
- Selection / Location and Acquisition of Land
- Registration formalities
- Construction of factory building
- Financial Appraisal
- Assistance of Financial Requirement
- Order for Plant and Machinery
- Apply for power connection
- Installation of Plant and Machinery and trial run.
- Arrangement for raw-materials and manpower
- Marketing of products
- Sales Realisation
- Selection/ Location and Acquisition of land
Is TEV Study is mandatory for the Banks ?
- On the basis of policy of the Bank, the TEV Study limit has been fixed by the Bankers.
- TEV study is normally conducted for the loans for Rs.50.00 lacs and above, as insisted by majority of Banks.
- TEV study is mandatory for the loans above Rs.10.00 crores.
Why TEV Study Report is required for the Bank / Lender ?
- When proposal of loan is received from the customer/ borrower, the Branch Manager will have to appraise the project to know whether the project is technically and financially feasible and viable?
- If the Bank lends the money, whether there will be regular repayment of loan out of the internal generation of funds?
- Whether adequate securities are available against Bank’s exposure and what will be the FMV?
- What is the position of financials of the Company ?
WHAT IS THE ROLE OF Applylegal?
- To collect the necessary information/ documents from the customer/ Bank.
- To study the projections given in the project report,
- To visit the site to verify the land, building, machinery etc as per the projections.
- Submit the report on financials and technical aspects of the unit to the Bank with concluding remarks.