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