Upload
kaushal-patel
View
6
Download
1
Embed Size (px)
DESCRIPTION
project report
Citation preview
PREPARED BY:-
Patel Kaushal A. [ 15ENV015 ]
Ajay Andodariya [ 15ENV017 ]
A Project Report is a written document pertaining to any investment proposal. It contains relevant data, on the basis of which the project has been appraised and found relevant to the entrepreneur.
A project Report is prepared by the expert after detailed study & analysis of the various aspects of a project.
It is basically a business plan. It outlines the desired goals. It describes all the necessary inputs to the enterprises. It explains the mode of utilization of the resources. It details the strategies for the execution of the project.
To identify the requirement of the resources (technical, financial, commercial, managerial and operational)
To find out the critical components of the project idea. To obtain the opinions of experts from various fields. To facilitates financial appraisal of the project by
financial institutions, banks, insurance companies, etc.
Need for project formulation
Selection of appropriate technologyInfluence of External EconomicsDearth of Technically Qualified PersonnelResource mobilisationKnowledge about Government Regulations
Description of the entrepreneur Description of the enterprise & brief summary of the
project. Inputs for the proposed project Financial Aspects Economic Viability Total income, operative net profit, etc. Profitability analysis. Information regarding technical feasibility,
marketing ,present demand, etc.
General Information Preliminary analysis of alternatives Project Description Marketing Plan Capital Requirement & Costs Operating Requirement & Costs Financial Analysis Economic Analysis
Significance of a project formulationProject formulation is the best passport for obtaining the
required assistance from financial institutions.It will also be of great assistance for obtaining necessary
Government clearances and in meeting the hurdles of procedure formalities.
It will pinpoint the matters for which government sanctions have to be obtained.
It will provide an independent assessment of the feasibility of obtaining the sanctions based on the existing government policies.
Elements of Project Formulation
Feasibility analysisTechno-economic analysisProject design and network analysisInput analysisFinancial analysisSocial cost benefit analysis Project appraisal
Project selectionEconomic sizeStatus of industry or scopeRaw material availabilityCost of productionCapital costUtility requirementsInfrastructure facilities neededProfitability government policy
Preparation of Project Formulation1.Preliminary study
2.Group discussion
3.Prepare project report
4.Obtain government clearance
5.Submit the application to financial institutions
6.Implement
7.review
3. Prepare project report
Prepare primary dataPhase 1
Marketing Demand forecast Estimate of
product price Estimate product
mix
Personnel•Identify promoters•Decide organization•Plan man power requirement
Technical Estimate Cost
of assets Estimate cost
of inputs Prepare flow
chart
Project Net Work•Identify activities•Prepare time Estimates•Draw network diagram
Financial projections
Cost of projectMeans of finance
Estimate of working resultsBalance sheet and cash flow
Phase 2
Economic analysis
Compute payback period
Internal rate of return
Compute break even analysis
•Sensitivity analysis
•Debt serviceCoverage ratio
Phase 3
4.Obtain government clearance
Industrial licenseCapital goodsController of
capital issues
Foreign collaboration approval MRTP clearance
S.G. clearance
5.Submit the Application to Financial Institutions
Procure sanctionComply with terms and conditions
Create securityObtain funds
The information contained in the project report is very useful for:-
Entrepreneur Financial Institutions Government