PROJECT REPORT

 The project report is a document that contains all information

regarding the proposed project.
 The project report is basically the business plan of action and
clearly describes its goals and objectives
 A Project Report is a document which provides details on the
overall picture of the proposed business.
 ProjectReport is a written document relating to any investment. It
contains data on the basis of which the project has been appraised
and found feasible. It consists of information on economic,
technical, financial, managerial and production aspects.
The project report contains detailed information about
Land and buildings required, Manufacturing Capacity per
annum, Manufacturing Process, Machinery & equipment
along with their prices and specifications, Requirements of
raw materials, Requirements of Power & Water,
Manpower needs, Marketing Cost of the project,
production, financial analyses and economic viability of
the project.
 Characteristics of Project Report

1. Scope: The project report gives a clear picture of what is to be done or to be

achieved. It
describes the goals of the proposed project and activities to be undertaken for
achieving
these goals.
2. Resource: It shows the means or resources required to meet the desired scope.
Project
report serves as the roadmap which tells the direction in which business should go for
attaining its goals
3. Time: The project report denotes the standard time required for the completion of
each and every task of the proposed project.
4.Quality: The project report explains the desired
standards to be achieved by the
completion of all tasks. Limit of deviations that can be
accepted from these defined standards are also contained
in this report.

5. Risk: Risk is an unavoidable factor associated with

every business and needs to monitored properly. The
project report considers all risk factors that may arrive at
the completion of the proposed project and also tells the
ways for recovering from these factors.
 Need/Objectives/Purpose of Project
Report
1. Selecting Best Investment Proposal: Project report is an efficient tool for analyzing the
status of any investment proposal. It shows the expected profitability and risk associated
with the project and this way helps in choosing the best option.
2. Approval of Project: It is essential for registration or approval purposes of the proposed
project. Different authorities like District industries center, Directorate of industries,
government departments, etc. require project reports for giving approval.
3. Tracking: The Project report assists in tracking the current activities of the project. It
helps
team members and other stakeholders to check the project progress from time to time and
helps in finding out any deviations against the original plan.
4. Visibility: Another important advantage of having the project report is that it
gives full insight into the project. It gives a clear description of activities to be
undertaken and avoids any confusion or disorder.

5. Risk Identification: Identification of risk is a significant step for the

completion of every project. The project report enables in spotting the risk early
and taking all corrective

6. Cost Management: Project report helps in managing the expenses through

regular reporting of all activities. It sets the standard cost of every operation in
advance and helps in finding out any deviation in these costs through tracking of
the project.
7. Financial Assistance: It is an important tool for availing financial assistance from
financial institutions or fund providers. The project report enables financial institutions in
judging the profitability of the proposed project and then takes the decision accordingly
for approving the funds.
8. Test Business Soundness: Project report helps in testing the profitability and soundness
of the proposed project. It tells the total estimated costs, possible income and risk
associated with any proposal.
Requirements / Contents of a Project
Report
1. General Information
A project report must provide information about the details of the industry to which the
project belongs to. It must give information about the past experience, present status,
problems and future prospects of the industry. It must give information about the product
to be manufactured and the reasons for selecting the product if the proposed business is a
manufacturing unit. It must spell out the demand for the product in the local, national and
the global market. It should clearly identify the alternatives of business and should clarify
the reasons for starting the business.
2. Executive Summary
A project report must state the objectives of the business and the methods through which
the business can attain success. The overall picture of the business with regard to capital,
operations, methods of functioning and execution of the business must be stated in the
project report. It must mention the assumptions and the risks generally involved in the
business.
3. Organization Summary
The project report should indicate the organization structure and pattern proposed for the
unit. It must state whether the ownership is based on sole proprietorship, partnership or
Joint Stock Company. It must provide information about the bio data of the promoters
including financial soundness. The name, address, age qualification and experience of the
proprietors or promoters of the proposed business must be stated in the project report
4. Project Description
A brief description of the project must be stated and must give details about the
following:
 Location of the site,
 Raw material requirements,
 Target of production,
 Area required for the work shed,
 Power requirements,
 Fuel requirements,
 Water requirements,
 Employment requirements of skilled and unskilled labour,
 Technology selected for the project,
 Production process,
 Projected production volumes, unit prices,
 Pollution treatment plants required.
5. Marketing Plan
The project report must clearly state the total expected demand for the product. It must
state the price at which the product can be sold in the market. It must also mention the
strategies to be employed to capture the market. If any, after sale service is provided that
must also be stated in the project. It must describe the mode of distribution of the product
from the production unit to the market. Project report must state the following:
 Type of customers,
 Target markets,
 Nature of market,
 Market segmentation,
 Future prospects of the market,
 Sales objectives,
 Marketing Cost of the project,
 Market share of proposed venture,
 Demand for the product in the local, national and the global
market,
6. Capital Structure and operating cost
The project report must describe the total capital requirements of the project. It must state
the source of finance, it must also indicate the extent of owner’s funds and borrowed funds.
Working capital requirements must be stated and the source of supply should also be
indicated in the project. Estimate of total project cost, must be broken down into land,
construction of buildings and civil works, plant and machinery, miscellaneous fixed assets,
preliminary and preoperative expenses and working capital.
7. Management Plan
The project report should state the following.
a. Business experience of the promoters of the business,
b. Details about the management team,
c. Duties and responsibilities of team members,
d. Current personnel needs of the organization,
e. Methods of managing the business,
f. Plans for hiring and training personnel,
g. Programmes and policies of the management
8. Financial Aspects
In order to judge the profitability of the business a projected profit and loss account and
balance sheet must be presented in the project report. It must show the estimated sales
revenue, cost of production, gross profit and net profit likely to be earned by the proposed
unit. In addition to the above, a projected balance sheet, cash flow statement and funds
flow statement must be prepared every year and at least for a period of 3 to 5 years. The
income statement and cash flow projections should include a three-year summary, detail
by month for the first year, and detail by quarter for the second and third years. Breakeven
point and rate of return on investment must be stated in the project report.
9. Technical Aspects
Project report provides information about the technology and technical aspects of a project.
It covers information on Technology selected for the project, Production process, capacity
of machinery, pollution control plants etc.

10. Project Implementation

Every proposed business unit must draw a time table for the project. It must indicate the
time within the activities involved in establishing the enterprise can be completed.
Implementation schemes show the timetable envisaged for project preparation and
completion.
11. Social responsibility
The proposed units draws inputs from the society. Hence its contribution to the society
in the form of employment, income, exports and infrastructure. The output of the
business must be indicated in the project report.
Requirements of a good project report
1) Project report should be prepared with the help of an expert team.
2) Project report should be based on proper survey and systematic
preliminary study of the project
3) Project report is the means not the end
4) Product demamd,capital resources, raw material availability,labour
resources etc. must be estimated properly.
5) Through discussions must be made with experts, various personnels of
concerned departments before finalizing the report.
6) The end result should be to receive finance and to get the project
implemented
7.Complete satisfaction of the entrepreneur should be
ensured before the report is submitted to the financial
institutions.
8.The project report should be precise, accurate and
specific.
9.The contents of the project report should be in a logical
sequence
General principles of a good reporting system
 Principle of proper flow of information
 Principle of a proper timing
 Principle of accuracy
 Principle of relevance
 Principle of clarity
 Principle of consistency
 Principle of brevity
 Principle of economy
 Principle of proper scheduling
 Principle of factual information
 Methods of reporting
1.written reporting
a) Formal financial statements; actual figures against the budgeted ones,
comparative accounting statements giving information over a period of time.
b) Tabulated information; Information regarding expenditure,sales,production etc.
may be furnished in the form of tables
c) Accounting ratios: Accounting ratios are presented as part of formal financial
statements.
2.Graphic reporting: the report should be presented in the form of graphs, diagrams
and pictures.
3.Oral reporting: Oral reporting may take the form of a) group meetings
b)conferences with individuals.