Project Report

Project:
A project is a business plan. It’s an idea about the proposed business.
 
Project Report:
A project report is a written document about the proposed business covering various aspects of the business. The main areas covered by the project report are:

1.      Technical
2.      Marketing
3.      Financial
4.      Manpower
5.      Managerial
6.      Environment
7.      Social Cost Benefit (Economic)

Need and Importance of Project Report:
1.      Record: Project report is required to document and record several aspects of the proposed business. It is the outcome of a through project plan and study of the proposed project.
2.      Future Reference: A project report can be preserved and used as a document for future reference in order to assess the progress of the project in future.
3.      Registration: A project report is required for obtaining necessary permissions and registration of the business with various regulatory authorities and government agencies.
4.      Loans/Borrowings: A project report is an essential document in order to obtain loans (debt) from Banks and financial institutions.
5.      Issue of Shares: A project report is also useful at the time of issue of shares to the public. In the offer document (Prospectus) extracts of project report are included in it.
 
Contents of Project Report:
A project report must contain the following things:
Company Information:
a)      Name of the company
b)      Address of the company
c)      Name of the promoter(s)
d)     Site and Location
e)      Addresses of the plants and other facilities
Proposed Projects Information:
a)      Brief history of the proposed project
b)      Objectives of the proposed project
c)      Scope of the proposed project
Market and Marketing Information:
a)      Size of the market for the new products
b)      Level of competition
c)      Present demand and supply position
d)     Future growth prospects
e)      Availability of Distribution channel intermediaries – wholesalers and Retailers
f)       Decisions regards 4-P’s of marketing mix
Technical Information:
a)      Technical specifications of the product
b)      Type of raw materials required
c)      Sources of supply of raw materials – whether indigenous or required to be imported.
d)     Details of manufacturing processes – Labour Intensive or Capital intensive.
e)      Plant and Machinery, tools and equipments required.
f)       Requirements of land and building including total land area, built-up area and rent, if any, in case of rental facilities.
g)      Location of the plant.
h)      Layout of the plant.
Financial Information:
a)      Total estimated cost of the project.
b)      Cost of capital expenditure as well as working capital requirements.
c)      Contingencies provided for escalation in the cost and expenses.
d)     Preliminary expenses.
e)      Sources of finance – long term and short term.
f)       Sources of working capital.
g)      Cost of production.
h)      Profits and profitability details.
i)        Break-even point.
j)        Term loans required for the project.
k)      Special government incentives, if any.
l)        Depreciation on fixed assets.
m)    Estimated life of fixed assets.
Manpower Information:
a)      Number of personnel required giving a break-up of skilled, semi-skilled and unskilled personnel.
b)      Salary and wage structure.
c)      Training and Development facilities.
d)     Staff quarters and other facilities required.
e)      Government regulation in relation to employment and wage payment.