A Project Report is a document which provides details on the overall picture of the proposed business. The project report gives an account of the project proposal to ascertain the prospects of the proposed plan/activity.
Project Report 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. It enables the entrepreneur to know the inputs and helps him to obtain loans from banks or financial Institutions.
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.
Following are the 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. Cost of Project and Means of Finance
A project report must contains the details about the overall cost involved in project and the details about the means of financing the said projected cost in terms of capital and loans.
3. Projected Balance sheet and Profit and loss account
The project report should contain the details about the projected revenue generation of the project over period of times like 3 years , 5 years or 7 years as per the terms of repayment of loan. It should also contains the projected profitability statement and projected balance sheet of the project on the basis of realistic estimates for period of times as may be required by banks or financial institurions.
4. Repayment Schedule
A project report must contains the repayment schedule of term loan granted by bank along with principal and interest repayment as per the terms of agreement with bank.,
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:
6. Management Plan
The project report should state the following.
A project report for term loan must contain a schedule depicting the DSCR i.e Debt Service coverage ratio on the basis of projected revenue figures.
8. 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.
9. 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.
10. 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.