UNIT IV PPFV-PROJECT-MEANING,IMPORTANCE,PREPARATION&GUIDELINES

Project Report is a project written for any kind of investment. It collects

information on financial management, technical, economic. Also, Project Report collect
the details of buildings, land scale ares, manufacturing of materials, equipment which is
needed to the business, cost invested for the project, Project report help to keep all
details.

A Project Report & CMA Report is also called for profitability. It collects the strength of
the business and cash invested statement, which is the period of 5–7 years. In general, a
Project report will include a profit & a loss report for the 5-7 year along with Cash flow
projections, which shows whether the business is profitable in the long-term and is
capable of repaying the loan.

There are some Importance of Project Report they are given below:
IMPORTANCE-I

1. Project Report helps you to understand to move ahead and to understand

what is important for future plan success.
2. You will get help with your business expenditures.
3. It will help you to get the new vendors, investors to your business.
4. Project Report will help you in managing the budget which gonna investing
in your business.
5. Complete details will get you from the market.
6. Inviting Professional to business for planning and presentation.
7. Helps the business owner with an exciting and eye-catchy business
plan/ideas.
This importance for Project Report will get you to know all the Deep information for your
business, financial which you are investing for the raw materials, requirements of power
and water, production and economic viability of the projects.

I hope above given information will help you. For more details related to the Project
Report below is the link is given where we will help you in Project Report for Quick Loan
Approval at an affordable price, transparent and hassle-free manner.

Project report is the written document were related to the investment. The project
report keeps the detailed information of land and building, manufacturing process,
equipment, requirements of raw material, power and water, manpower needs, etc.

Project report is the document which provides overall details of the business. It enables
the entrepreneur to know the inputs and helps him to obtain loans from banks or
financial Institutions.
There are 4 types of project report they are as follows:-

1. Status reports:- These type of projects are very common which is used

regular by the project manager work on regularly. It is commonly drawn up to
present to sponsors or certain stakeholders that will be affected by the
outcome of the project and must be kept up-to-date on the project’s progress.
2. Risk reports:- These report is the key of project management. Risk must
be under control which should not affect serious damage to project. Risk
should be reported at least monthly.
3. Board executive reports:- Here should be much more details should be
maintained by the projects. Different types of projects of different format all
should be very detailed.
4. Resource reports:- Working out resource allocation by hand would take
up a lot of time, especially if a project is large-scale and more on the
complicated side.
Importance-2

1 Usually, the project report is a document that includes a

combination of economic, profitability and technical analysis. It’s
a complete tool designed to offer professional information about
any projects and the benefits that it might be able to provide at
this time. When you do a project report online, you will see that
such a report can be an exquisite investment proposal. In fact,
investors ask for this document to see if your project is worth
their money or not.
2 You can consider the project report to be a cornerstone for any
new startup. That’s why you need a good project report on any
startup, because it can easily convert your idea for a business
into something fruitful. You can use the project report for a bank
loan; you can also use this as a pitch for your investors. The
feasibility of your project will indeed count on the way this project
report is received.
3 Thankfully, using a good project report tool like ProjectZo.com
will provide you with an excellent way to make the most out of
your reports and results will indeed pay off this way.
4 If you want successful management, you will need to start with a
good plan. The project report format allows it to be a perfect
planning tool for your business. With its help, you can identify the
strengths and weaknesses of your business. Based on that, you
 can focus on eliminating the issues as you build upon the core,
powerful ideas of your business.
5 Moreover, the project report tool allows you to create a roadmap
for your business in the longer term. You will have the opportunity
to build new goals and expansion ideas in one single document.
Everyone, from the banks to potential investors, will need to have
a look at your project report before they shell out any money. It’s
important to have a report that’s clear, easy to read and one that
will offer a real insight into the business ideas that you might
have.
6 Projectzo.com is the very best project report tool on the market
that was created specifically to provide you high quality and value
in one great package. Its primary focus is on quality, and it
enables you to follow the right project report format, all while
offering you all the tools you need to create beautiful, impressive
reports. No matter if you need a project report for a bank loan or
you just are in dire need for a good project report on any startup,
ProjectZo.com can deliver. All you have to do is to give this great
tool a shot right now, and results will be more than impressive!

 Guidelines of Planning Commission’s for Formulating Project Report

Realising the usefulness of these guidelines, we
now are presenting these guidelines in a summarised
manner hereunder:
In order to process investment proposals and arrive at
investment decisions, the Planning Commission of India has
also issued some guidelines for preparing/ formulating
realistic business plans/industrial projects. So far as
feasibility report is concerned, it lies in between the project
formulating stage and the appraisal and sanction stage. The
project formulation stage involves the identification of
investment options by the enterprise and in consultation with
the Administrative Ministry, the Planning Commission and
other concerned authorities.
1. General Information:
The feasibility report should include an analysis of the
industry to which the project belongs. It should deal with the
past performance of the industry. The description of the type
of industry should also be given, i.e., the priority of the
industry, increase in production, role of the public sector,
allocation of investment of funds, choice of technique, etc.
This should also contain information about the enterprise
submitting the feasibility report.

2. Preliminary Analysis of Alternatives:

This should contain present data on the gap between
demand and supply for the outputs which are to be
produced, data on the capacity that would be available from
the projects that are in production or under implementation
at the time the report is prepared, a complete list of all
existing plants in the industry, giving their capacity and level
of production actually attained, a list of all projects for which
letters of intents/ licenses have been issued and a list of
proposed projects.

All options that are technically feasible should be considered

at this preliminary stage. The location of the project as well
as its implications should also be looked into. An account of
the foreign exchange requirement should also be taken. The
profitability of different options should also be given. The rate
of return on investment should be calculated and presented
in the report. Alternative cost calculations vis-a-vis return
should be presented.
3. Project Description:
The feasibility should provide a brief description of the
technology /process chosen for the project. Information
relevant to determining optimality of the location chosen
should also be included. To assist in the assessment of the
environmental effects of a project, every feasibility report
must present the information on specific points, i.e.,
population, water, air, land, flora and fauna; effects arising
out of project’s pollution, other environmental discretions,
etc.

The report should contain a list of the operational

requirements of the plant, requirements of water and power,
requirements of personnel, organisational structure
envisaged, transport costs, and activity-wise phasing of
construction and factors affecting it.

4. Marketing Plan:
A good marketing plan should contain the following
items:
a. Data on the marketing plan.

b. Demand and prospective supply in each of the areas to be

served.

c. The method and data used for main estimates of domestic

supply and selection of the market areas should be
presented. Estimates of the degree of price sensitivity should
be presented.

d. It should contain an analysis of past trends in prices.

5. Capital Requirements and Costs:
The estimates should be reasonably complete and properly
estimated. Information on all items of costs should be
carefully collected and presented.

6. Operating Requirements and Costs:

Operating costs are essentially those costs which are
incurred after the commencement of commercial production.
Information about all items of operating cost should be
collected. Operating costs relate to the cost of raw materials
and intermediates, fuel, utilities, labour, repair and
maintenance, selling expenses, and other expenses.

7. Financial Analysis:
The purpose of this analysis is to present some measures to
assess the financial viability of the project. A proforma
Balance Sheet for the project data should be presented.
Depreciation should be allowed for on the basis of specified
rate by the Bureau of Public Enterprises (BPE). Foreign
exchange requirements should be cleared by the
Department of Economic Affairs (DEA).

The feasibility report should take into account income-tax

rebates for priority industries, incentives for backward areas,
accelerated depreciation, etc. The sensitivity analysis should
also be presented. The report must analyse the sensitivity of
the rate of return of change in the level and pattern of
product prices.
8. Economic Analysis:
Social profitability analysis needs some adjustment in the
data relating to the costs and returns to the enterprise. One
important type of investment involves a correction in input
and costs, to reflect the true value of foreign exchange,
labour and capital. The enterprise should try to assess the
impact of its operations on foreign trade. Indirect costs and
benefits should also be included in the report. If they cannot
be quantified, they should be analysed and their importance
emphasised.

9. Miscellaneous Aspects:
The preceding three areas are deemed appropriate to
almost every new small enterprise. Notwithstanding,
depending upon the size of the operation and peculiarities of
a particular project, other items may be considered important
to be applied out in the project report. To mention a few,
probable use of minicomputers or other electronic data
processing services, cash flow statements, method of
accounting etc., may be of great use in some micro and
small enterprises.
 PROJECT REPORT PREPARATION

1. Organization of the Project Report -This project report shall be

presented in a number of chapters, starting with Introduction and
ending with Summary and Conclusions. Each of the other chapters
will have a precise title reflecting the contents of the chapter. A
chapter can be subdivided into sections, subsections and sub
subsection so as to present the content discretely and with due
emphasis. When the work comprises two or more mutually
independent investigations, the project report may be divided into
two or more parts, each with an appropriate title. However, the
numbering of chapters will be continuous right through.

1.1 Introduction- The title of Chapter 1 shall be Introduction. It shall

justify and highlight the problem posed, define the topic and explain
the aim and scope of the work presented in the project report. It
may also highlight the significant contributions from the
investigation.

1.2 Review of Literature- IIT Guwahati 3 This shall normally form

Chapter 2 and shall present a critical appraisal of the previous work
published in the literature pertaining to the topic of the
investigation. The extent and emphasis of the chapter shall depend
on the nature of the investigation.
1.3 Report on the present investigation The reporting on the
investigation shall be presented in one or more chapters with
appropriate chapter titles. • Due importance shall be given to
experimental setups, procedures adopted, techniques developed,
methodologies developed and adopted. • While important
derivations/formulae should normally be presented in the text of
these chapters, extensive and long treatments, copious details and
tedious information, detailed results in tabular and graphical forms
may be presented in Appendices. Representative data in table and
figures may, however, be included in appropriate chapters. • Figures
and tables should be presented immediately following their first
mention in the text. Short tables and figures (say, less than half the
writing area of the page) should be presented within the text, while
large table and figures may be presented on separate pages. •
Equations should form separate lines with appropriate paragraph
separation above and below the equation line, with equation
numbers flushed to the right.

1.4 Results and Discussions This shall form the penultimate chapter
of the project report and shall include a thorough evaluation of the
investigation carried out and bring out the contributions from the
study. The discussion shall logically lead to inferences and
conclusions as well as scope for possible further future work. IIT
Guwahati 4

1.5 Summary and Conclusions This will be the final chapter of the
project report. A brief report of the work carried out shall form the
first part of the Chapter. Conclusions derived from the logical
analysis presented in the Results and Discussions Chapter shall be
presented and clearly enumerated, each point stated separately.
Scope for future work should be stated lucidly in the last part of the
chapter.
 1.6 Appendix Detailed information, lengthy derivations, raw
experimental observations etc. are to be presented in the separate
appendices, which shall be numbered in Roman Capitals (e.g.
“Appendix IV”).

1.7 References Number all the references. Use a chronological

bibliography. Each listed reference in the bibliography must be cited
in the text of the report. For a book give the name(s) of author(s),
title of book, edition, chapter number, and page numbers, publisher,
location and year of publication. Example: [25] Jones, C.D., A.B.
Smith, and E.F. Roberts, Efficient Real-Time FineGrained
Concurrency, 2nd Ed., Ch. 3, pp. 145-7, Tata McGraw-Hill, New Delhi,
1994. For a journal/conference paper, give the name(s) of authors,
title of paper, name of journal/ conference, volume and issue
number (for journal), page numbers, and month and year of
publication. Example: IIT Guwahati 5 [23] Prasad, A.B., Kumar, C.D.,
Jones, E.F., and Frost, P.: “Cable Television Broadband
Architectures”, IEEE Comm. Magazine, vol. 39, pp. 134-141, June
1991. For a World Wide Web page, give the author or company's
name and the URL.