project report

PREPARATION OF PROJECT REPORT:

PREPARATION OF PROJECT REPORT PREPARED BY BHALE ULHAS Ulhasbhale@gmail.com

MEANING OF PROJECT REPORT:

MEANING OF PROJECT REPORT A Project Report is a written document pertaining to any investment proposal. It contains relevant data, on the basis of which the project has been appraised and found relevant to the entrepreneur. A project Report is prepared by the expert after detailed study & analysis of the various aspects of a project.

FEATURES OF THE PROJECT REPORT:

FEATURES OF THE PROJECT REPORT It is basically a business plan. It outlines the desired goals. It describes all the necessary inputs to the enterprises. It explains the mode of utilization of the resources. It details the strategies for the execution of the project.

OBJECTIVES OF PROJECT REPORT:

OBJECTIVES OF PROJECT REPORT To identify the requirement of the resources (technical, financial, commercial, managerial and operational) To find out the critical components of the project idea. To obtain the opinions of experts from various fields. To facilitates financial appraisal of the project by financial institutions, banks, insurance companies, etc.

USES OF PROJECT REPORT:

USES OF PROJECT REPORT The information contained in the project report is very useful for - ENTREPRENEUR FINANCIAL INSTITUTIONS GOVERNMENT

Need for project formulation:

Need for project formulation Selection of appropriate technology Influence of External Economics Dearth of Technically Qualified Personnel Resource mobilization Knowledge about Government Regulations

ELEMENTS OF PROJECT REPORT:

ELEMENTS OF PROJECT REPORT Description of the entrepreneur Description of the enterprise & brief summary of the project. Inputs for the proposed project Financial Aspects Economic Viability Total income, operative net profit, etc. Profitability analysis. Information regarding technical feasibility. marketing feasibility, present demand, etc.

STEPS IN THE PREPARATION OF A PROJECT REPORT:

STEPS IN THE PREPARATION OF A PROJECT REPORT General Information Preliminary analysis of alternatives Project Description Marketing Plan Capital Requirement & Costs Operating Requirement & Costs Financial Analysis Economic Analysis Miscellaneous analysis

Significance of a project formulation:

Significance of a project formulation Project formulation is the best passport for obtaining the required assistance from financial institutions. It will also be of great assistance for obtaining necessary Government clearances and in meeting the hurdles of procedure formalities. It will pinpoint the matters for which government sanctions have to be obtained. It will provide an independent assessment of the feasibility of obtaining the sanctions based on the existing government policies.

Elements of Project Formulation:

Elements of Project Formulation Feasibility analysis Techno-economic analysis Project design and network analysis Input analysis Financial analysis Social cost benefit analysis Project appraisal

Project selection:

Project selection Economic size Status of industry or scope Raw material availability Cost of production Capital cost Utility requirements Infrastructure facilities needed Profitability government policy

Preparation of project formulation:

Preparation of project formulation Preliminary study Group discussion Prepare project report 4.Obtain government clearance 5.Submit the application to financial institutions 6.Implement 7.review

Prepare project Prepare primary data:

Prepare project Prepare primary data Technical Estimate Cost of assets Estimate cost of inputs Prepare flow chart Phase 1 Marketing Demand forecast Estimate of product price Estimate product mix Personnel Identify promoters Decide organization Plan man power requirement Project Net Work Identify activities Prepare time Estimates Draw network diagram

Financial projections:

Financial projections Cost of project Means of finance Estimate of working results Balance sheet and cash flow Phase 2

Economic analysis:

Economic analysis Compute payback period Internal rate of return(I.R.R.) Compute Break Even analysis (B.E.P.) Sensitivity analysis Debt service Coverage ratio(DSCR) Phase 3

Obtain government clearance:

Obtain government clearance Industrial license EM-I/EM-II Factory act reg. if applicable Local governing body NOC Food &drug license if apply cable MRTP clearance/weights& measure/taxes LOCATOIN clearance Phase 4

Submit the application to financial institutions:

Submit the application to financial institutions Procure sanction Comply with terms and conditions Create security Obtain funds Phase 5

Project launching:

Project launching Building construction Machinery erection Procurement of raw material Skill manpower recruitment Electricity connection Trial production Final production. First sale First bank loan installment. Phase 5

RATIO ANALYSIS:

RATIO ANALYSIS R.O.I. = Total revenue x100 Total capital investment B.E.P = Fixed capital investment x100 fixedcost+100 DSCR =

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