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Com 3rd Semester Module: 5

Entrepreneurship Development Project Report

Module: 5
Project Report
1 Mark Questions
1. What is a project?
A project is an appraisal for investment with the definite aim of producing the output within
a specified period of time. In other words, a project is an inter related set of activities that
has a definite starting and ending point and results in the accomplishment of a unique and
often major outcome
2. What is a project report?
A project report is a written document on what an entrepreneur proposes to take up to
establish his enterprise. In other words, a project report may be termed as a road map to
what is required to achieve the organisations objectives within a specified period of time

2 Mark Questions
1. What are the various methods of reporting?
The various methods of reporting are as follows:
a) Written Reports:
i. Abstract and Briefing
ii. Annual Reports
iii. Fact Sheet
iv. Empirical Publication
v. Newsletters
b) Oral/Visual Reports
i. Presentations
ii. Exhibit
iii. News Release
iv. Posters
2. Define the term project
According to the British Standards Institute, a project is defined as a unique set of
coordinated activities, with defined starting and finishing points, undertaken by an
individual or organisation to meet specific objectives with defined schedule, cost and
performance parameters.
3. Define the term project report
According to Connor Sephton, a project report is defined as a record of any sort of project
written to document the beginning, middle and end of specific project events that may later
be used to make decisions about planning similar events or initiatives in the future. A
project report may be defined as a document with respect to any investment proposal based
on certain information and factual data for the purpose of appraising the project.
4 Mark Questions
1. What are the purposes of a project report?
The preparation of a project report is of great importance to an entrepreneur. The purposes
of a project report are as follows:
a) It helps an entrepreneur in judging the profitability of a given proposal
b) It is the basis for procuring funds from banks and other financial institutions
c) It aids the process leading up to project implementation
d) It generates a knowledge base for the entrepreneur regarding the various facets of the
structure of the organisation

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B.Com 3rd Semester Module: 5
Entrepreneurship Development Project Report

e) It educates the entrepreneur regarding the degree of risk involved in the proposal
f) It brings into focus the key areas of operation in the proposed project that require
special attention
2 What are the objectives /importance of a Project Report?
To correctly analyse the financial feasibility of a project as well as the range of dependability
of its production, marketing and other related aspects is the elementary objective of any
project report. The project report serves the following additional objectives:
i. Project appraisal- A project report supports the assessment of the feasibility
of a project and assists the entrepreneur to commence the progressive
activities of an enterprise or the expansion of an innovative production line.
ii. Choosing the best project- A project report facilitates an entrepreneur to
equate diverse investment schemes and handpick the most appropriate
iii. Deciding the feasibility- A project report highlights the viability of a business
venture on the basis of numerous factors such as economy, finance, technical
aspects, social desirability, etc.
iv. Business scheduling- A good project report simplifies the process of business
scheduling. Once a meticulous study and investigation of the many
characteristics of a project is prepared by a professionally qualified expert, a
project report is prepared. This helps in aiding the procedure of creating good
plans for the future.
v. Authorised requirements- A project report offers a good structure for
presenting the same to Government, both at the state as well as the Central
levels, for accomplishing the legal requirements and for gaining itself of the
facilities available and concessions provided.
vi. Procuring support from financial institutions- A project report helps in
fulfilling the procedures of the various financial institutions which provide
finances to the new industrial units. Such reports helps the financial
institutions to make evaluations on matters regarding financial, economic and
technical viability of the project to be undertaken.
vii. Determining the accurate direction- If precisely organised, a project report
empowers the entrepreneur to guarantee that he is continuing in the correct

3 Explain the scope of a project report

A project report is a comprehensive plan and provides the particulars of action to be
undertaken within the project. It is an officially approved document used to direct both the
processes of project execution and project control. The comprehensive details concerning the
scope of a project report are as follows:
a) Economic aspects: A project report explains the validations of the investment
proposal. It must be capable of presenting a market enquiry of the merchandise to be
manufactured .The current demand for the product, its prospective demand, role of
business rivals , etc. should be analysed in a project report.
b) Technical aspects: A project report provides a perfect representation of the
procedures required, the machinery and equipment that are to be made available and
the sources from which they can be procured.
c) Financial aspects: A project report discloses the wide-ranging information
concerning the sources of financial accessibility, the degree of involvement of the
entrepreneur, etc.
d) Production aspects: A project report elucidates the particulars regarding the product
designated for production and the explanations for making such a selection. The
report also stipulates whether the product should be export worthy or not. A
thorough explanation about the product design is also given in the report.

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Entrepreneurship Development Project Report

e) Managerial aspects: The credentials and skills of the individuals trusted with the
project implementation is comprehensively mentioned in the report.

15 Mark Questions
1. Explain the requirements of a good report
The following points highlight the top nineteen requirements of a good report of

a) Good Form- Form of the report should be adopted in a way that it must leave its
required impression on the user of the report. An ideal form should have a proper
title, headings sub-heading and paragraph division. The title of the report itself will
explain the purpose for which the report has been prepared. The title also enables to
point out the persons who need the report. The title explains the purpose and period
of preparing the report.
b) Contents- If statistical figures are to be given in the report then only significant
figures and totals should be made a part of it and other detailed figures should be
given in appendix. The reports should contain facts only and not opinions. The
opinion if essential may come as a signet to certain facts and not otherwise. The
report must contain the date of its preparation and date of submission. If the report is
prepared in response to a request or letter then it should bear reference number of
such letter or request. The contents of a report must serve the purpose for which it
has been prepared. Separate reports be prepared for different subjects. Various
aspects of the subject should be properly conveyed. The contents of the report should
be in a logical sequence. The contents of the report should be relevant. Irrelevant
information should not be included.
c) Simplicity-The report should be presented in a simple, unambiguous and in a clear
language. The language used in report should be non- technical. If the report is
loaded with technical terminology, it will reduce its utility because the reader may be
unfamiliar with that language If technical terminology is the essential requirement of
the subject covered some explanation of technical terms must be given to make the
report understandable. The user of the report should be able to understand the report
without any difficulty. The report should also be readable. The figures should be
rounded off so as to make them easily understandable. If possible charts, diagrams or
graphs should be used for presenting information.
d) Promptness- Promptness in submitting report is an essential requisite of a good
report. The reports should be sent at the earliest. Reports prepared by various
responsibility centres within the organisation are required for studying the progress
and performance of responsibility centres. A considerable delay in the occurrence of
an event and reporting of the same will defeat the objective and purpose of reporting.
Information delayed is information denied. The quick supply of reports will enable
the management to take corrective actions well in time. The reports are to be based
on information the promptness in reporting will depend on quick collection of facts
and figures.
e) Relevance- Reports should be presented only to those persons who need them.
Reports should be submitted to relevant authorities. Sometimes reports are sent to
various divisions in routine way, then it will involve unnecessary expenditure and
wastage of time. Reports will not remain secret also. The persons or departments to
whom the report is to be sent should be clear to the sender of the report, people do
not give much attention to reports coining in a routine way. So, this type of practice
involves unavoidable expenditure and reduces the importance of reports.
f) Consistency- There should be consistency in the preparation of reports. For
consistency, the reports should be prepared from the same type of information and
statistical data. This will be possible if same accounting principles and concepts are

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B.Com 3rd Semester Module: 5
Entrepreneurship Development Project Report

used for collecting, classifying, tabulating and presentation of information.

Consistency in reporting enhances their utility.
g) Accuracy- The reports should be reasonably accurate. Statistical reports may
sometimes be approximated to make them easily understandable. The production of
figures accurate up to paisa may be difficult to be remembered. Their reasonable
approximation may make them readable and understandable. The degree of accuracy
depends upon the nature of information and purpose of its collection. The
approximation should not be done up to the level where information loses its form
and utility. So accuracy should be used to enhance the use of reports.
h) Factual- The reports should be prepared on the basis of factual information. Any
predictions should be avoided in reports unless and until it becomes necessity.
Fictional items should not form the content of any report.
i) Controllability-The reports should be addressed to appropriate persons in respective
responsibility centres. The report should give detail of variances which are related to
that centre. This will help in taking corrective measures at appropriate levels. The
variances which are not controllable at a particular responsibility centre may also be
mentioned separately in the report.
j) Cost Consideration- The cost benefit analysis should be done in respect to the
preparation of the Reports. The cost of preparing and presenting the report should
not be the more than the advantages desired from such reports. The Cost should be
reasonable so that reporting may be used by all types of concerns. The cost benefit
analysis will help in deciding about the adoption of reporting system.
k) Comparability- The reporting system is meant to help the management in taking
correct decisions and improving the operational efficiency of the organisation. This
objective will better be achieved if reports give comparative information. The
comparative information can be in relation to previous periods, current standards or
budgets. This information helps in finding out deviations or variances. Where
performance is below standards or expectations, such variances can be highlighted in
the reports. The management by exception is possible when exceptional information
will be supplied to the management. The comparative reporting will at once, help the
user to reach at conclusions about the performance of the responsibility centres
mentioned in the report.
l) Frequency of reports- Along-with promptness, the frequency of reporting is also
significant. The reports should be sent regularly when they are required. The timing
of reporting will depend upon nature of the information and its purpose. Some
reports may be sent daily, some weekly, some monthly and so on. Frequency of
reports means that these should be sent when required. The reports are prepared at
appropriate times and sent to appropriate persons as per their requirement.
m) Decorative- Reports particularly prepared for general public or external users should
be decorative. Various attractive pictures on front page of the report can be
presented. Pictorial information usually has more attraction of the user than
descriptive information. Any report fully loaded with statistical data presented with
colourful diagrams and beautiful pictures on its title page will leave ever lasting
impression on external users.
n) Unbiased Recommendation- Recommendations on a report usually make effect on
the readers mind. So, if recommendations are made at the end of a report, they must
be impartial and objective. They should come as logical conclusion for investigation
and analysis.
o) Reader-Orientation- While drafting any report, it is necessary to keep in mind about
the person who is going to read it. That's why a good report is always reader oriented.
Readers knowledge and level of understanding should be considered by the writer of
report. Well reader-oriented information qualify a report to be a good one.
p) Clarity and Analysis- A good report must be clear and analytical with the purpose of
its use. Lack of clear information and analysis will not be able to serve the basic
purpose and object of reporting.

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B.Com 3rd Semester Module: 5
Entrepreneurship Development Project Report

q) Brevity: A brief report is always desirable on account of various reasons as they are
less costly, are time saving, reflect efficiency and usually focus on the main issue.
r) Planned and Organized- A planned and organized report is always regarded a good
report. A planned report will include:
i. The object of report, methodology used for collecting data.
ii. Summary of conclusions.
iii. Problems and solutions.
iv. Recommendations.
v. Annexure
s) Properly addressed- A report must be addressed to the users of the report, for
instance, Manager, Board of Directors, Managing Director etc.
t) Duly signed and dated- Report prepared by any department must be properly dated
and signed by responsible Head of the department. Undated reports may not be able
to fix the historicity of the report on some future date.
u) Terms of Reference: A Report should contain various terms of reference which will
explain the objects and contents of report.

2 Explain the major principles of a good reporting system

The following points highlight the top thirteen principles of a good reporting system of
management. They are:
a) Proper Flow of Information- A good reporting system should have a proper flow
of information. The information should flow from the proper place to the right
levels of management. The information should be sent in the right form and at a
proper time so that it helps in planning and coordination. The frequency of
reports will depend upon the nature of report, the types of data required for
preparing the information and cost involved in preparing such reports. The flow
of reports should be such that it does not cause delay in taking decisions. The
reports should flow at regular intervals so that informational needs of different
managerial levels are met at a proper time. Flow of information is a continuous
activity and effects all levels of the organisation. Information may flow upward,
downward or sideways within an organisation. Orders, instructions, plans etc.
may flow from top to bottom. Reports, grievances, suggestions etc. may flow from
bottom to top. Notifications, letters; settlements, complaints may flow from
outside. Information also flows sideways from one manager to another at the
same level through meetings, discussions etc.
b) Proper Timing- Since reports are used as a controlling device so they should be
presented at the earliest or immediately after the happenings of an event. The
time required for preparation of reports should be reduced to the minimum; for
routine reports the period should be known and strictly adhered to. It will be
waste of time and effort to prepare information which is too late to be of any use.
The absence of information when needed will either mean wrong decisions or
deferment of decisions on matters which may be urgent in nature.
c) Accurate Information- The information should be as accurate as possible. If the
information supplied is inaccurate it may result in making wrong decisions.
However, the degree of accuracy may differ in different reports. Sometimes, part
information may be supplied as a guide for future policy making, so the degree of
accuracy may be less. The supply of exact figures may involve a problem of
understanding. Approximate figures are more understandable than accurate
figures given up to paisa. Accuracy should also not involve excessive cost of
preparation nor should it be achieved at the sacrifice of promptness of
presentation. It will be better to have approximate figures at a proper time than
delayed information prepared accurately.

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B.Com 3rd Semester Module: 5
Entrepreneurship Development Project Report

d) Basis of Comparison- The information supplied through reports will be more

useful when it is supplied in comparison with past figures, standards set or
objectives laid down. The comparison of information with past or budgeted
figures will enable the reader to find out trends of variations. The decision taking
authority will be able to make use of comparative figure while taking a decision.
Corrective measures can also be initiated to improve upon the past performance.
The management accountant can make the reports more useful by giving his own
interpretations to the information.
e) Reports should be clear and simple- The purpose of preparing reports is to help
management in planning, coordinating and controlling. This purpose can be
achieved only when the reports are easily understood by the readers. The
information should be presented in a clear manner by avoiding extraneous data.
Only relevant important information should become the part of a report. If
supporting information cannot be avoided then it should either be given in
appendix or separate chart should be attached for it. The method of presenting
information should be such that it attracts the eye, and enables the reader to form
an opinion about the information. The graphic presentation of information will
enable the reader to find out the trends and also to determine deviations more
quickly than in other methods. The arrangement of presentation should be brief,
clear and complete. Simplicity is a good guide for reports preparation.
f) Cost- The benefits derived from reporting system must be commensurate with the
cost involved in it. Though it is not possible to assess the benefit of this system in
monetary terms, there should be an endeavour to make the system as economical
as possible.
g) Evaluation of Responsibility- The reporting system should enable the evaluation
of managerial responsibility. The targets are fixed for various functional
departmental heads. The record of actual performance is monitored along-with
the standards so as to enable management to assess the performance of different
individuals. So, management reporting should be devised in a way that it helps in
evaluating the work assigned to various persons.
h) Adequacy- A good reporting system will be that system of reporting in which
adequate data is given to the management to suggest possible courses of action.
Adequate data provided in reports saves valuable time of management and
ensures prompt attention.
i) Visual Reporting- A good reporting system will have visual reporting. It has been
observed that visual reporting with the help of graphs, charts and diagrams in
comparison to descriptive reporting attracts the eye more quickly and leaves a
lasting impression on the mind of the users.
j) Principle of Consistency- Principle of consistency is followed in a good reporting
system. Various formats being used for the preparation of various reports should
not be frequently changed from time to time. If in certain cases, of any format is
changed for making any improvement, changes in contents or format should be
k) Factual- A good reporting system should be based on reports containing factual
informations. Management has to take decision in future on the basis of the
information contained in various reports. Any false information contained in the
reports will not be helpful in taking correct decisions.
l) Principle of Brevity- Principle of brevity should be followed while reporting since
long reports are very difficult to analyse and long reports generally rely greatly on
highlighting irrelevant minor details and major issues involved are not taken up

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B.Com 3rd Semester Module: 5
Entrepreneurship Development Project Report

m) Principle of Scheduling- Principle of scheduling should also be followed in a way

that reports can be prepared without excess burden on the staff. Employees must
be given sufficient time to do the work well on the preparation of report. Time lag
between collection of data and finished report should not be much longer.
n) Relevant Information- Proper attention should be devoted to include only
relevant information in the report. The inclusion of irrelevant information is
waste one and increase the time in the report preparation. Moreover, the
irrelevant information confuse the end user of the report.
o) Impartiality/Objectivity- The investigator is a fact finder. Therefore, he should
report the material and evidentiary facts without addition or subtraction. Also he
should not conceal or withhold information. Assumptions, preconceived ideas
and conclusions should be avoided and an unbiased and open mind should be
possessed by the investigator about the case. Becoming emotionally involved in
the process of seeking information is also not preferable while preparing a report.
3 Explain the various methods of reporting

There are two broad categories of reporting methods:

a) Written reports: A written report may be a project requirement or the best way to
communicate information to a specific audience. They include:-
i. Abstract and Briefing- An abstract is a short, written overview. A briefing
is a short, oral overview. Both are usually part of a larger report. They are
usually used for audiences who are short on time or focus. An abstract
deals with the reasons for conducting the evaluation whereas a briefing
deals with the major conclusions and recommendations.
ii. Annual Reports- Annual reports are a detailed, year-long overview of a
program and evaluation findings. They include the summary, background
information, a description of the project, evaluation results, etc. and can
be interesting and engaging if you follow a proven format. Such reports
are used for audiences interested in a highly formal report on all aspects of
a program and the evaluation.
iii. Fact Sheets- Fact sheets are simple, one-page documents listing facts
about the data in a simple-to-read format. They easily convey data at a
glance. They include a brief program background, purpose, basic data,
conclusions, and recommendations. Audiences who want to easily pick
out relevant facts about the data at a glance usually prefer fact sheets
iv. Empirical Publication- Empirical publications are publications that
include the data collected from actual research, experiments, or
observations. It includes an abstract, introductions, literature review,
methodology, results, implications, conclusions, and references. Specific
practitioners or academics who are interested in research or evaluation
findings prefer empirical publications. When writing empirical
publication, the results of any qualitative or quantitative data collected
can be, especially if the specific causal results from the experimental
design are demonstrated.
v. Newsletters- An informative publication that is written and distributed on
a regular basis (monthly, quarterly) and contains updated information
about the program or cause is known as a newsletter. They can vary in
length and contain graphics showing data results, pictures, and other
items of visual interest. They are used by an audience who is interested in
a program or organization, often serving as a primary link sometimes
the only link between an audience and the program. The distribution of
such newsletter should be regular as it keeps the interest towards it high.
b) Oral or Visual Reports-

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B.Com 3rd Semester Module: 5
Entrepreneurship Development Project Report

i. Presentation- Presentation involves the process to create slides, handouts,

notes and outlines that enhance oral presentation. It is the most common
type of public presentation. A presentation includes a title, purpose,
objectives, background, findings, and recommendations. Presentations
help in displaying key points in order to enhance understanding, illustrate
ideas, and break down complex concepts into simpler ones. Presentations
work best when the text is minimized in word and line according to each
ii. Exhibits- Exhibits may be termed as display boards or an arrangement of
materials and publications about the programme. They are usually set out
on a table or in a booth. Exhibits are used for large events like fairs or
conferences and is a good way to network, put information into people's
hands, and create awareness among large audiences. They include a title,
several bulleted statements that convey the message, photographs, and/or
illustrations. Exhibits that have a promotion qulity are most successful at
attracting an audience.
iii. News Release- An interesting, news worthy summary that is sent to
newspapers, radio, and television stations, highlighting only the most
important details of any evaluation or study may be called a news release.
They are used to raise public interest in a study or evaluation that a person
has conducted. News release usually contain an eye-catching message and
use quotes by the programme directors or participants that draw attention
to important information and include the name, phone number, and
address of a contact person. Such reports end with the symbol "###"
which will alert the reader that the news release has finished.
iv. Posters- A visually interesting board or placard that is used to promote a
single idea, event, a point, or to generate interest may be termed as a
poster. They are used for advertising programs, creating awareness, and
piquing the interest of people interested in the results of a study. Posters
should include the name of the program, project, research, organization,
the goal of the project, the findings from the research, etc. Also including
bright pictures, photos, and graphics along with sound bites and
interactive features bring out higher response rates.

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