Project Report

The project report is an extremely important aspect of the project it is the basis for all terms of barrowing activity like Term Loans, Venture Capital Finance, Lease Finance, and Hire Purchase – a good project report will communicate and convenience financial institutions.

It should be properly structured and also necessary and appropriate information regarding the project. A project report is written document containing complete information about the proposed project in summary.

Importance of project report

It act like reference guide
It is a basis of obtaining loans
The government sanctions license or registration of certificate
It is like a controlling device
It supplies information
It is used as a basis by promoter to take investment decisions
It enables to evaluate the soundness of the project

Contents of project report

Introduction: Promoters and company

Scope and Objective of the Project

Market Potential: Analysis with respect to size of the market, demand & supply, Future prospect of market share, competitors report, intermeddlers – wholesalers – distributors-retailers.

Technical specifications, Raw material, Manufacturing process, Plant & Machinery, Requirement of Land & Building, Location and layout of the plant.

Cost of the project & margin money for working capital

Means of financing

Assessing cost of capital

Projected profitability and cash flow ( in case of new projects very important aspect)

Preparation of financial statements and analysis- Break even point, Internal rate of return, Depreciation methods on earning per share

Appraisal criterion for judging the viability of project

Legal appraisal of the project, sanction and disbursement procedures