A project report is a written document containing

complete information about the proposed project in summary form .

 It act like a reference guide .

It is a basis for obtaining loans .

The government sanction license or certificate of

registration . It is like a controlling device . It supplies information . It is used as a basis by promoter to take investment decisions It enables to evaluate the soundness of the project

 Name and address of the promoter / firm .

Objective and scope of the project .

MARKET STUDY : Project report gives the analysis of the market in respect of :
Size of the market for the proposed product . Present demand and supply position . Future prospects of market share . Number of suppliers / manufacturers and extend of competition Availability of intermediaries wholesalers and retailers .

 The project report should provide details about the

technology and tools needed and the sources of availability technical study coves areas like _ Technical specifications of the product to be manufactured . Raw materials including the sources of supply .

 Manufacturing process .

Plant and machinery .

Tools and equipment etc . Requirement of land and building .

Location and layout of the plant .

 The report indicate the financial aspect as : Total cost of the project . Preliminary expenses . Source of finance- fixed and working capital . Source of

working capital . Cost of production and profitability . Break- even point . Cost of fixed assets . Term loans. Special incentives ,if any . Depreciation on fixed assets .

 The report provides data of manpower as:

Number of skilled semi- skilled and unskilled personnel required in the production and other department . Salary and wages structure . Facilities for training and developments .

It includes : Pricing strategies . Advertising strategies . Sales promotion technique . Marketing channels .

Introduction
The terms Project Planning and Project Report are

commonly used in the process of starting of a new business enterprise

Project planning is an integral part of project management that outlines the steps or the procedure for executing the project . Like an architects plan , project planning ensures smooth and orderly executing of the proposed business proposal .

 It is useful to small and big , private and public

profit and service type of organizations . It is done in the case of new project or expansion or modernization of existing operation . It helps to execute the project in a systematic manner. It is a comprehensive term . It is the basis for the execution of the project report and covers technical , marketing , financial and managerial aspect .

 Discovery of business proposal .

Primary investigation .
Technical and physical study . Feasibility study .

Final stage .

 PROJECT REPORT
1. MEANING: It is a written report containing

complete information about the proposed project in summary form . 2. WHO PREPARES : It is prepared by the promoters with the help of experts . PROJECT PLANNING it is a written document containing in detail the findings of technical , financial and marketing feasibility studies . It is prepared by promoters or by lending institutions .

 3. WHEN PREPARED : It is prepared before feasibility

report in the initial stage of project formulation . 4. BASE : It is prepared on the basis of project planning . FEASIBILITY REPORT It is prepared after the project report is ready . project report is the basis for preparing feasibility report .

 5.USEFULNESS : It is like a reference guide during the

execution of project . It is a basis for obtaining loans from banks. FEASIBILITY REPORT It is useful to find out commercial viability of the project i .e rate of success or failure of a project .

 Introduction :- A project report is a descriptive

statement which provides the required detail information about the idea generated for the investment . A preliminary project report is a statement of information related to - - - a) Investment , labour , and raw material requirement b) Plant and machinery requirement . c) Technological requirement .

 d) Profitability of the project .

e) Therefore , project report is a frame work of

business requirement . It gives information about Managerial , Financial , Economic , Technological , Profitable aspect of the project .

 Project report is one of the modern concept in the field

of business today , before selecting or investing in any business , the entrepreneur like to know the requirement and the profit of the business . He wants to know in advance what the government policy is , etc answer to all this question are present in a report called as project report .

 Detailed information about the project is collected by

an entrepreneur . The entrepreneur gets clear knowledge of all the formalities to be completed before the unit is set-up . Preparation about obtaining the land and shed , machinery , etc . Can be started well in advance as the project report aptly points out these requirements . The project report instills confidence in the entrepreneur .

 Even though , project report prepares the foundation

of the project , it is flexible and can be changed as per the requirement . Following are the broad heads under which the complete information on relevant aspects is included in the project report . 1. General information 2. Project description

 3. Market potential

4. Capital costs
5. Assessment of working capital 6. Other financial aspects

7. Economic and social variables

Preparation of Project Report

PRELIMINARY PROJECT REPORT

I-A- GENERAL INFORMATION :NAME OF THE ENTERPRISE P.C SHETTY BIRTH DATE 09/04/1947 PROJECT PAPER BOARD CARTOONS LOCATION URBAN AREA

 TYPE OF ORGANISATION - SMALL SCALE INDUSTRY NAME OF THE FIRM ADDRESS

- PRINT CRAFT. -A-49 , GROUND FLOOR, PANALAL COMPOUND, L.B.S. MARG, BHANDUP (W) . MUMBAI 400 078 .

 I-B- EDUCATIONAL QUALIFICATION -

Degree Institute Major Subject Yr of Pass T.Y.B. Mangalore 1967-68 University

Mark 2nd Class

 DEGREE

INSTITUTE MAJOR YEAR OF MARK SUBJECT PASS S.S.S MANGLORE _ 1962-63 1st BOARD

 I-C- SPECIAL TRANING Sr.No.

Training Achievement
Computer Printing Diploma

Institute Duration

1.

2.

nil 2 yrs bombay J.J 3yrs school of arts bombay

Passed Passed

I-D WORK EXPERIENCE . PAST Sr.No. Organism duration position nature of work
1.

R.M.D.C Pvt. Ltd.

Product production 28yrs Manager related

 PRESENT Sr.No. Organi 1.

Nature Duration sation of work PrintEnter printing 13 yrs craft preneur related cartons .

Position

 II DETAIL OF PROPOSED PROJECTS

A- Production Programme: Sr.No. Items

total qty

annual - sales

capacity

turnover.

1.

Paper- Mthly board 6lacs cartons ctns

80 10 lacs lacs after per Prodn mth

60 lacs yrly

II-B Machineries / Equipments

Sr. Name No. Volt
1. 2.

Descri No. Price ption Reqd

Total Value

Suppliers Add

Polar sheet 1 4.H.P cutting Heide- sheet 2 lbarg Printing 8.H.P

6 lakhs 6.50 L 30 lacs 30 lacs

Polar Heide lbarg

 Sr. Name

no. Volt

description

No. Price Total reqd Value

Suppliers Add

3. Bobst Dle 2 20 20 Bobst 3.H.P Cutting lacs lacs Add: 4.ACME Gheeing 1 10 10 ACME 4.H.P lacs lacs

 II C RAW MATERIALS
SR.NO. PARTI 1. Paper

CULAR

board Hyderabad 2. INK BalMicro krishna INK Kalyan b. India LTD -Daman. 3. Pedility 1 tonne

ANNUAL REQUIRMENT 1200 tonnes

TOTAL REMARK ANNUAL EXPENSES 24,000 S.T.C.Co. (Rs) 1 2,50,000 a. Tonnes (Rs)

60,000(Rs)

Mumbai

 II- D MAN - POWER

Sr.No. Particulars Annual wages No.of

Remark
_ _

Workers
1. Skilled

9,60,000 (Rs) 10 2. Semiskilled 4,80,000 (Rs) 8 3. Unskilled 5,40,000(Rs) 4. Office Staff 8,64,000(Rs) 5

15 _

 The industry Print Craft is a self owned company , so

there is no need of any interference of government. And hence the question of incentives and subsidies do not arise . In the particular location mentioned only one company is of printing and pressing . And the other one more company is in Mulund then.

A FIXED CAPITAL . Sr.No. Item 1. Land and Building 2. Machinery and Equipment 3. Furniture and Fixtures Total =

Value (Rs) 60 Lakhs . 50 Lakhs. 60 Lakhs . 170 Lakhs .

 B WORKING CAPITAL

Sr.No Item Duration

1. Raw-

Qty

materials
2. Semi-

1 month ready stock available. 10 days 4 tons 12,00,00

Value 5 tons 3,34,000

finished

stock goods

 Sr.no. Item Duration

3. Finished goods stock 4.Production expenses

5 Days

Qty Value(Rs) 2 tons 14,000

 C-TOTAL COST OF PROJECT

Sr.no. Particulars
Fixed capital Working capital

Preliminary expenses

Total

Value (Rs) _ 1,15,000 _ 5,94,000 _ 20,000 _ 7,29,000

 D MEANS OF FINANCE

Sr.no

Particulars Value (Rs) Remark 1. Fixed capital 1,15,000 2. Working capital 5,94,000 3.Own investment 2,00,000 4.Subsidy Total 9,09,000 -

Sr.no Description
1. 2.

3.
4. 5. 6. 7. 8. 9.

Sales Revenue Manufacturing Expenses 4,00,000 Selling &Distribution Exp Administrative Expenses Interest Depreciation Gross Profit Income Tax Net Profit 9,00,000

Value (Rs) Income 8,00,000 _

Expense

1,00,000 5,00,000 1,00,000 3,00,000 1,20,000 3,00,000

 Do you own a house / Property etc

_ Yes Own insurance Policy _ Yes Any interest in other firm _ Yes Do you belong to S.C/S.T /O.B.C/ General _ General Present Monthly Income Rs _ 50,000 (Approx)

 VI REFERENCES :

Sr.no :1
Name

Address Occupation P.C.Shetty A-49,Ground floor, Printing 14th July,06 Pannalal Compound ,Pressing of L.B.S Marg , Cartons Bhandup-(W) ,
Mumbai-78. Place : Bhandup

 Sr.no Name

Address Occupation 2. Vittun J.B. Complex , Printing & Shrinivas Blding No.A-23, Pressing of 14th July,06 1st Floor , Cartons Nirmal nagar , Mulund (W) , Mumbai 80.

 Project report is a blueprint of the project . It gives

complete information about the technical , economic , financial and managerial aspects of the project . The important elements of a preliminary project report are as follows : General information about the entrepreneur Project description Market potential

 Capital costs

Assessment of working costs

Other financial aspects Project monitoring & reviewing

Break even point

CENTRAL LEVEL
SSI BOARD KVIC SIDO NSIC NSTEDB NPC NISIET NIESBUD IIE EDI

STATE LEVEL
DIs
DICs SSIs SFCs SIDCs/SIICs SSIDCs

OTHERS
Industry Association Non Governmental Organizations R & D Laboratories

 Statutory body created by an act of Parliament It is charged with planning, promotion, organization and

implementation of the program for the development of Khadi and other village industries in the rural areas in coordination with other agencies engaged in rural development KVICs functions also comprise building up a reserve of raw materials and implements for supply to producers, creation of common service facilities for processing of raw materials and provision of marketing of KVIC products KVIC is entrusted with the task of providing financial assistance to institutions or persons engaged in the development and operation of Khadi and village industries and guide them through supply of designs, prototypes and other technical information

 Established in 1954 on recommendation of Ford Foundation Over the years, it had seen its role evolve into an agency for

advocacy, handholding and facilitation for the small industries sector SIDO provides facilities for testing, tool mending, training for entrepreneurship development, preparation of project and product profiles, technical and managerial consultancy, assistance for export, pollution and energy audits, and so on SIDO provides economic information services and advises the government in policy formulation for the promotion and development of SSIs

 Established in 1955 by GOI with the main objectives to

promote, aid and foster the growth of SSIs in the country Over four decades of transition and growth in the SSI sector, NSIC has provided strength through a progressive attitude of modernization, upgradation of technology, quality consciousness, strengthening linkages with large and medium-scale enterprise and boosting exports of products from small enterprises Main services provided by NSIC are: Machinery and Equipment (Hire Purchase / Lease scheme) Financial Assistance Scheme Assistance for Procurement of Raw Material Government Store Purchase Program Technology Transfer Centre (TTC) Marketing Assistance

 Established in 1982 by GOI, is an institutional mechanism to

help promote knowledge-driven and technology-intensive enterprises Major objectives are: - promote and develop high-end entrepreneurship for S&T manpower as well as self-employment by utilizing S&T infrastructure and by using S&T methods - facilitate and conduct various informational services relating to promotion of entrepreneurship network agencies of support system, academic institutions and R&D organizations to foster self-employment using S&T with special focus on backward areas - act as a policy advisory body with regard to entrepreneurship

 Autonomous institution functioning under the overall supervision of

the Ministry of Industry, GOI Primary objective is to act as a catalyst in enhancing the productivity of all sectors of the economy, including industry and agriculture Administered by a tripartite Governing Council (GC) which has equal representation from the government, industry and trade unions Active in the field of consultancy and training and has a number of specialized divisions to provide tailor-made solutions to agriculture and industry. These divisions, manned by trained consultants, deal with issues related to industrial engineering, plant engineering, energy management, HRD, informal sector, agriculture and so on NPC is a member of the Asian Productivity Organization (APO), Tokyo, an umbrella body of all productivity councils in Asian region To channelise expertise of NPC to small-scale and informal sector, SIDBI has tied-up with NPC for enhancing technology in small units

 Set up in early 1950s, NISIET acts an important resource

and information centre for small units and undertakes research and consultancy for small industry development An autonomous arm of the Ministry of Small Scale Industries, the institute achieves its objectives through training, consultancy, research and education, to extension and information services In 1984, UNIDO has recognized NISIET as an institute of meritorious performance under its Centre of Excellence Scheme to extend aid

 NIESBUD is an autonomous body under the administrative

control of the Office of the DC(SSI) NIESBUD established in 1983 by the Ministry of Industry, GOI, as an apex body for coordinating and overseeing the activities of various institutions/agencies engaged in Entrepreneurship Development particularly in the area of small industry and business The policy, direction and guidance to the institute is provided by its Governing Council whose chairman is the Minister of SSI. Besides conducting national and international training programs, the institute undertakes research studies, consultancy assignments, development of training aids, etc.

 Directorate of Industries (DIs) At the State level, the Commissioner/

Director of Industries implements policies for the promotion and development of small-scale, cottage, medium and large scale industries. The Central policies for the SSI sector serve as guidelines but each State evolves its own policy and package of incentives. The Commissioner/ Director of Industries in all the States/UTs, oversee the activities of field offices, that is, the District Industries Centers (DICs) at the district level District Industries Centers (DICs) In order to extend promotion of smallscale and cottage industries beyond big cities and state capitals to district headquarters, DIC program was initiated in May, 1978, as a centrally sponsored scheme. DIC was established with the aim of generating greater employment opportunities especially in rural and backward areas in the country. At present DICs operate under respective Sate budgetary provisions. DICs extend services of the following nature (i) economic investigation of local resources (ii) supply of machinery and equipment (iii) provision of raw materials (iv) arrangement of credit facilities (v) marketing (vi) quality inputs (vii) consultancy

State Financial Corporations (SFCs) Main objectives are to finance and promote small and medium enterprises in their respective states for achieving balanced regional growth, catalyze investment, generate employment and widen ownership base of industry. Financial assistance is provided by way of term loans, direct subscription to equity/debentures, guarantees, discounting of bills of exchange and seed capital assistance. SFCs operate a number of schemes of refinance of IDBI and SIDBI and also extend equity type assistance. SFCs have tailor-made schemes for artisans and special target groups such as SC/ST, women, ex-servicemen, physically challenged and also provide financial assistance for small road transport operators, hotels, tourism-related activities, hospitals and so on. Under Single Window Scheme of SIDBI, SFCs have also been extending working capital along with term loans to mitigate the difficulties faced by SSIs in obtaining working capital limits on time

 State Industrial Development / Investment Corporation (SIDC/SIIC)

Set up under the Companies Act, 1956, as wholly owned undertakings of

the State governments, act as catalysts in respective states. SIDC helps in

developing land providing developed plots together with facilities like roads, power, water supply, drainage and other amenities. They also

extend assistance to small-scale sector by way of term loans, subscription

to equity and promotional services. 11 out of 28 SIDCs in the country also function as SFCs and are termed as Twin-function IDCs

 State Small Industrial Development Corporations (SSIDC)

Established under Companies Act, 1956, as State government undertaking, caters to small, tiny and village industries in respective states.
Being operationally flexible undertakes the activities like

(i) procure and distribution of scarce raw materials, (ii) supply of machinery to SSI units on hire-purchase basis, (iii) product marketing assistance, (iv) construction of industrial estates,

allied infrastructure facilities and their maintenance (v) extending

seed capital assistance on behalf of State government and (vi) providing management assistance to production units

 State Infrastructure Development Corporations

State Cooperative Banks

Regional Rural Banks State Export Corporations

Agro Industries Corporations

Handloom and Handicrafts Corporations

National Bank for Agriculture and Rural Development (NABARD)

Set up in 1982, provide refinance assistance to State Cooperative Banks, Regional Rural Banks, and other approved institutions for all kinds of production and investment credit to SSIs, artisans, cottage and village industries, handicrafts and other allied activities. Helps SSI entrepreneurs to get loan for setting up SSIs in any part of the country

Housing and Urban Development Corporation Ltd. (HUDCO)

Wholly owned company of GOI, incorporated Apr.1970, as a Pvt. Ltd. Co. and subsequently, converted into a Public Ltd. Co. in 1986. Primary objective is to provide assistance for urban, social sector infrastructure, and the creation of housing facility, of late, to create SSI infrastructure. Also extends assistance for the promotion of building material industries, besides imparting consultancy, training and technical in related matters.

Technical Consultancy Organizations (TCOs)

Set up by all-India financial institutions during 70s and 80s to cater to consultancy needs of SMEs and new entrepreneurs. Services include preparing project profiles and feasibility studies, undertaking industrial potential surveys, identifying potential entrepreneurs and provision of technical and management assistance to them, undertake market research and surveys for specific products, carrying out energy audit and energy conservatism assignment, project supervision, taking up assignments on a turnkey basis, undertaking export consultancy for EOU

 Constituted in 1954 to facilitate the coordination and inter-

institutional linkages for the development of SSI sector The Board is an apex advisory body constituted to render advice to the government on all issues pertaining to the SSI sector The office of the Development Commissioner (Small-Scale Industry) serves as the secretariat for the board The Board operates broadly in the following areas: - Policies & programs - Development of industries in specific region like Northeast - Ancillary development, quality improvement, mktg. assistance - Credit facilities, taxation and modernization - Industrial sickness