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Whether you want to start a new business or a project or you want to expand your existing business, finance is
the bloodline of any business. When you have a great idea but do not have any money to execute it, you could
look for loan from banks & financial institutions.
Government has also come up with several schemes of loan & finances for various businesses especially the
MSMEs. One could read about the benefits available to a MSME here
While there are many requirements to get a loan from bank and these requirements vary from bank to bank &
according to the amount & type of loan you are looking for. In this article, we are going to discuss about how
could a project report be prepared for the purpose of loan.
a. Summary of the business/project: This talks about what the business or the project is, about the requirement
of finance etc.
b. Scope & prospects of the business: Describe about the scope of the project, it’s current status & the
prospects of future. It is about the technical & financial feasibility of the project.
c. Details about the promoters & other significant executives: Details out the profile, educational
qualification, experience of the promoters & key personnel.
d. Resources required: Infra, machinery, knowhow etc.: Describe about the Infrastructure & technical
requirements of the project, along with the cost & capacity.
e. Details about the target & prospective customers: State the consumer profile of the project in question,
about the prospects of scaling up & target customers.
f. Investment required: Specify the details about the investment required along with the specifications. This is
essentially the cost of the project.
g. Sources of finance: How the required funds are being sourced. Details about the owned & external funds.
h. Project financial statement: It includes the financial statements such as Balance sheet, Profit & loss account
i. Financial Projections: Quantitative projection on Income, expenses, sources of funds & application of funds
j. Ratio analysis: Computation & analysis of financial statements through key ratio & their implications is
required.
k. Funds flow Statement: Details about the funds- from where it is sourced and the application of funds are
included.
l. Breakeven analysis: Analysis of the breakeven point of the project, it’s feasibility in terms of cost & benefits
m. Conclusion: Conclusion about the project, about its strengths, weakness, opportunities & threats
Project report is a crucial document which requires expertise in terms of qualification & experience of the person
preparing it. Thus, it is prepared by professionals such as CAs, Ex-bankers & other finance professionals.
Check out the worksheet which could be used to prepare a project report –
Disclaimer: The above post is only for the purpose of academic discussion and should not be construed as any
legal opinion in any matter whatsoever.