PREPARED BY:-

SHWETA GUPTA(0231914308)
PREETI SACHDEVA(0481914308)
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.
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
Prepare primary data

Technical Personnel Project Net Work

Marketing
 Estimate
 Demand •Identify •Identify activities
Cost of forecast promoters •Prepare time
assets  Estimate of
•Decide Estimates
product price organization •Draw network
 Estimate
 Estimate
•Plan man diagram
cost of power
inputs product mix
requirement
 Prepare
flow chart
Phase 2
Financial projections

 Estimate of working
 Cost of project
results
 Means of finance
 Balance sheet and cash
flow
Phase 3
Economic analysis

 Compute  Compute
•Sensitivity •Debt service
payback break oven
analysis Coverage ratio
period analysis
 Internal rate
of return
 4.Obtain government clearance

Industrial license Controller of S.G. clearance Capital goods

capital issues

Foreign collaboration
MRTP clearance
approval
5.Submit the application to financial institutions

Obtain funds Create security

Comply with
Procure sanction
terms and
conditions
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