5.
PROJECT REPORT
Fathimath Binsiya M.T
Assistant Professor
Department of Commerce
Ideal Arts and Science College
Cheruppulassey
MEANING
• Project report is a document
that contains all information
regarding the proposed
project.
• It is a blueprint of all
operations to be undertaken
for attaining the desired
results.
FEASIBILITY REPORT
• It is a preliminary project report
• For preparing this, an in-depth study is not required
• It doesn’t contain full particulars of the project
• It is a temporary report
• Finally it is converted into detailed project report
PURPOSE / OBJECTIVES OF PROJECT REPORT
• To serve as a business plan indicating the objectives or goals of
the enterprise.
• To serve as a road map describing the direction in which the
enterprise should go and how to reach the goal
• To enable the entrepreneur to understand at the initial stage
whether the project is viable
• To enable an entrepreneur to understand what he needs well in
advance for implementing the project
• To enable an entrepreneur to take crucial decision
• To forecast the demand and supply position, competitors’
position in the market
• To show a general idea of various resource requirements
• To enable the Govt. authorities to provide subsidies, tax
exemptions incentives etc.
IMPORTANCE / BENEFITS / USES / FUNCTIONS OF
PROJECT REPORT
• It gives a general idea of resource requirements and means of
procuring them
• It shows the feasibility of the project and the possibility of
achieving profit
• It helps in procuring developed land or shed
• It helps in approaching bank for getting working capital loan
• It helps in getting term loan from banks and financial
institutions
• It describes the direction in which the enterprise should go and
how to reach the goal
• It enables an entrepreneur to realise what he needs for
implementing the project
CONTENT OF A PROJECT REPORT
1. Executive summery
2. introduction
3. background of the promoters
4. product
5. market and marketing
6. location
7. production process
8. raw material
9. utilities
10. transport and communication
11. manpower requirement
12. land and building
13. plant and machinery
14. cost of project and sources of finance
15. financial viability of the project
Executive summary
• It is the brief summary of the entire plan
Introduction
• General information about the company and product description
Background of the promoters / entrepreneurs
• Personal information – name, address, age , family background,
educational qualifications etc. of the entrepreneurs
Product
• Details of the product to be produced
Market and marketing
• Major end users of the product , major buyers, distribution
channels, market area, competition situation etc.
Location
• Exact location of the project
Production process
• Manufacturing process, details of technology, details
technical knowhow etc.
Raw material
• List of raw materials required, source of requirement, cost of
raw material etc.
Utilities
• water, power, etc.
Transport and communication
• Method, possibility of getting and costs of transport
Manpower requirement
• Requirement of skilled, semi skilled personnel, technical and
non technical personnel, managerial staff, marketing
personnel etc.
Land and building
• Land area, construction area, cost of production etc.
Cost of project and sources of finance
• forced capital and working capital
Financial viability of the project
• Cost of production and profitability for the first years, break
even analysis, analysis of cash flow and fund flow statement
REQUIREMENTS OF A GOOD / AN IDEAL PROJECT
REPORT
• It should be prepared with the help of an study of the project
• It is the means and not an end
• Product demand, capital resources, raw material availability,
labour resources etc. mustbe estimated properly
• Thorough discussion must be made with experts, various
personnel of concerned departments before finalising the report
• Complete satisfaction of the entrepreneur should be ensured
before the report is submitted to the financial institution
• It should be precise, accurate, and specific
• The contents of the project report should be in a logical
sequence
GENERAL PRINCIPLES OF A GOOD REPORTING
SYSTEM
1. Principle of proper flow of information
2. Principle of a proper timing
3. Principle of accuracy
4. Principle of relevance
5. Principle of clarity
6. Principle of consistency
7. Principle of brevity
8. Principle of economy
9. Principle of proper scheduling
10. Principle of factual information
Principle of proper flow of Information
• The information should flow freely from the proper place to the end
user of the report.
• Information should be presented in the right format and at a
proper time
Principle of proper timing
• the report should be submitted at the required time at any cost
Principle of accuracy
• The report should be contain only accurate information
Principle of relevance
• Only relevant information should be included in the report.
Principle of clarity
• It should be presented in simple and clear terms
Principle of consistency
• The format of report should be consistent
Principle of brevity
• The report should be brief
Principle of economy
Cost of preparing report should be less or economical
Principle of proper scheduling
• Report should be prepared with proper scheduling and
without excess burden
Principle of factual information
• A good report should be based on reports containing
factual information
METHODS OF REPORTING
ORAL
WRITTEN GRAPHIC REPORTING
REPORTING REPORTING
Written reporting
• It is presented in the form of writing
Graphic reporting
• It is presented in the form of charts, diagrams and pictures
Oral reporting
• It is presented in the form of group meetings and conference
with individuals
Thank you