SCOPE OF THE STUDY

Credit appraisal of a proposal helps the firm to,

Be consistent and objective in choosing projects.

Make sure its programme benefits all sections of the community, including those from

ethnic groups who have been left out in the past.

Provide documentation to meet financial and audit requirements and to explain decisions
to local people.

Appraisal is an important decision making tool,

Appraisal involves the comprehensive analysis of a wide range of data, judgements and
assumptions, all of which need adequate evidence. This helps ensure that projects
selected for funding.

LIMITATIONS OF THE STUDY

The data collected from various sources cannot be considered as correct information.
The figures shown in the project are just expected figures.
The result of the project appraisal cannot consider as 100% correct.
All financial tools which are applied in this appraisal have their own limitations.
Time was major constraint for the study.