PREPARED BY:SHWETA GUPTA(0231914308)

PREETI SACHDEVA(0481914308)

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.

The information contained in the project report

is very useful for: ENTREPRENEUR
FINANCIAL INSTITUTIONS
GOVERNMENT

Need for project

formulation
Selection of appropriate technology
Influence of External Economics
Dearth of Technically Qualified Personnel
Resource mobilisation
Knowledge 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
Miscellaneous analysis

Significance of a project
formulation
Project 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 analysis
Techno-economic analysis
Project design and network analysis
Input analysis
Financial analysis
Social cost benefit analysis
Project appraisal

Project selection
Economic size
Status of industry or scope
Raw material availability
Cost of production
Capital cost
Utility requirements
Infrastructure facilities needed
Profitability
government policy

Preparation of project
formulation
1.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

Phase 1

Technical
Estimate
Cost of
assets
Estimate
cost of
inputs
Prepare
flow chart

Prepare primary data

Marketing
Demand

forecast
Estimate of

product price
Estimate

product mix

Personnel
Identify
promoters
Decide
organization
Plan man
power
requirement

Project Net Work

Identify activities
Prepare time
Estimates
Draw network
diagram

Phase 2

Financial projections

Cost of project
Means of finance

Estimate of working

results
Balance sheet and
cash flow

Phase 3

Compute

payback
period
Internal rate

of return

Economic analysis
Compute

break oven
analysis

Sensitivity Debt service

analysis
Coverage ratio

4.Obtain government
clearance
Industrial license

Controller of
capital issues

Foreign collaboration
approval

S.G. clearance

Capital goods

MRTP clearance

5.Submit the application to financial

institutions

Obtain funds Create security

Comply with
terms and
conditions

Procure sanction

Planning commission
guidelines
General information
Preliminary analysis of alternatives
Project description
Marketing plan
Capital requirements and costs
Operating requirements and costs
Financial analysis
Economic analysis