Entrepreneurship Development

Project Report – Meaning and Contents of Project Report

Project report can be defined as a well evolved course of action devised to achieve the specified objectives within a specified period with specified resources . In simple words , it is a written statement of what an entrepreneur hopes to achieve in business and how he is going to do it . Preparation of project report clarifies to the entrepreneur various processes which are necessary for setting up and managing a new venture .

This report helps entrepreneur to have disciplined thinking and advanced planning . It is not merely a document covering precise details in respect of financial and economic viability rather it is a projection of performance based on certain assumptions . A project report contains the information starting from very general issues to detailed examination of specific issues relating to the project of the entrepreneur.

Contents of Project Report

(1) Executive Summary

  • Introduction
  • Financial Performance
  • Balance Sheet Analysis
  • Proposed Project
  • Project Profitability and analysis
  • SWOT analysis

(2) Company Details

  • History
  • Manufacturing facilities
  • Promoters
  • Shareholding Pattern
  • Board of Directors
  • Key Executives
  • Major Products
  • Major Customers
  • Details of Divisions
  • Group Units

(3) Operational Details

  • Capacity and Utilisation
  • Profit and loss account
  • Balance sheet
  • Term loans and advances
  • Working Capital loans
  • Marketing and Distribution Network of the Company
  • Marketing Strategy
  • Export Sales
  • Trends in selling Prices
  • Details of sub – contractors , outsourcing , etc .

(4) Project Details

  • Proposed project
  • Orders and enquiries
  • Location
  • Manufacturing process
  • Technical feasibility / Superiority
  • Technical know – how
  • Inputs for production
  • Power
  • Water
  • Marketing
  • Auxiliary Services

(5) Project Cost

  • Land
  • Building and civil works
  • Plant and machinery
  • Preoperative expenses
  • Margin money for working capital

(6) Means of finance

  • Equity – Share Capital
  • Internal Accruals
  • Deposits and Debt
  • Other Sources

(7) Project Status

  • Implementation Schedule
  • PERT and CPM analysis
  • Current Status
  • Government Approvals

(8) Profitability and risk analysis

  • Financial analysis of the project
  • Financial analysis of the Company
  • Analysis of break even point , return on investment , payback period , internal rate of return and sensitivity .
  • SWOT analysis

(9) Company vis-a-vis Related Industry

  • General analysis
  • Competing industries
  • Advantages of the company

(10) Employment Generation Direct / indirect

(11) Conclusion

(12) Annexures

  • Promoter ‘ s bio – data
  • Organisation Chart
  • Details of group units , if any
  • Statutory sanctions / approvals
  • Arrangement for land and building
  • Statement of cost of plant and machinery and other equipment
  • Details of orders and enquiries
  • Process Chart
  • Financials for project and its analysis
  • Finance of the company and its analysis

(13) Obtaining Licences / Registration

(14) Power Connection

(15) Arrangement of Finance – Finance is the life blood of a business and no entrepreneur can survive without it . The funding requirements of a project are of ( i ) long – term requirements for acquiring fixed assets like land and building , plant and machinery and for security deposits ( ii ) Short – term loans for working capital in the form of key loan / cash credit / bill discounting , etc .

(16) Procuring Personnel and Training – Success of an enterprise depends upon its workers depending upon the size of the industry and type of product . Entrepreneur will have to hire different type of  personnel for the unit . Some managerial and technical personnels may be required in the initial stage of the project . These may be required for preliminary work for supervision and related work during planning and implementation of project. This requirement goes on increasing as the project enters in to advanced stages. So, an organisation while keeping in mind its requirement , must select right type of workers on merit. Necessary training arrangements should also be made for the selected people to handle their jobs efficiently .

(17) Implement the project – The entrepreneur will have to take necessary steps to physically implement the project after obtaining the various licences , clearance , infrastructural facilities and so on . Keeping in mind the importance of environmental protection , it has been made mandatory for all the major projects to obtain clearance from environment department . Pollution control department is vested with power to issue no objection certificate , in case the unit is not causing any kind of pollution . Further the entrepreneurs are required to take several clearance when the unit is ready for communizing or as soon as it goes into production . Accordingly entrepreneurs are advised to refer to the various preliminary clearances they have obtained from different department organisations and take necessary steps to obtain final clearance or approvals as required .

About the author

Sarvesh Arora

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