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Project Report – Meaning, Contents of a Project Report In Detail

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Meaning Of The Project Report

A Project Report is a document that delivers detailed information on the overall picture of the proposed activity. The project report contains a project proposal report to clarify the prospects for the proposed plan/activity.

A project report is an inscribed document relating to any investment. Moreover, it contains the data based on which the project was assessed and deemed feasible. And also, it comprises information on economic, technical, financial, managerial, and production aspects. Furthermore, it allows the Entrepreneur to know the background and helps him to obtain loans from banks or financial institutions.

The project report contains detailed information about the required land and buildings, the production capacity per year, the production process, the machinery and equipment along with their prices and specifications. Additionally, it contains raw material requirements, electricity and water requirement, labour requirements, marketing cost of the project, financial analysis and economic feasibility of the project.

Content Of The Project Report

The following is the content of the project report:

1.General Information

The project report should contain detailed information about the sector to which the project belongs. All in all, it should provide information on the experience, current state, problems, and prospects of the industry.

It should contain information about the product to be produced and the reasons for choosing the product if the proposed activity is a production unit. And also, it must identify the demand for the product in the local, national and global markets. Furthermore, the Entrepreneur must identify business alternatives and explain the reasons for starting a business.

2. Executive Summary

Executive Summary

The project report should indicate the objectives of the enterprise and the methods by which the enterprise can succeed. The Entrepreneur should reflect the general picture of the business in terms of capital, operations, operating procedures, and business conduct in the project report.

Moreover, he should also mention the assumptions and risks usually associated with the business.

3. Summary of the Organization

The project report should indicate the organizational structure and model proposed for the unit. It should show whether ownership is based on a sole proprietorship, partnership, or joint-stock company.

Summary of the Organization

It must provide information on the promoters of master data, including financial feasibility. However, the project report must include the name, address, age, and experience of the owners or organizers of the proposed activity.

4. Description of the Project.

It is necessary to provide a brief description of the project and details of the following:

1. Site location,

2. Requirements for raw materials,

3. Production goal,

4. The area required for the working room,

5. Power requirements,

6. Fuel requirements,

7. The need for water,

8. The need for skilled and unskilled labour.

9. The technology was chosen for the project,

10. Manufacturing process,

11. Expected production volumes, unit prices,

12. Wastewater treatment plants are required.

If the business is service-oriented, it should specify the type of service for the customers. It should describe in detail the method of providing services to clients.

5. Marketing Plan

The project report should indicate the total expected demand for the product. And also, it should display the price of the product in the market. The strategies to conquer the market should also be mentioned.

If present, after-sales service is provided, which should also be present in the project. And also, it should describe how the product distribution method from the production unit to the market. Moreover, the project report should indicate the following:

1. Firstly, Type of customers,

2. Secondly, Reference markets,

3. The nature of the market,

4. Market segmentation,

5. Future market prospects,

6. Sales objectives,

7. Marketing cost of the project,

8. Market share of the proposed firm.

9. Demand for the product in the local, national and global market.

10. Lastly, It should identify potential users of the products and the distribution channels used to distribute the product.

6. Capital Structure and Operating Expenses.

The project report should describe the general capital requirements of the project. And also, it must indicate the source of funding and indicate the size of the owner’s funds and borrowed funds. However, the Project Report must state working capital requirements and also specify the supply source.

Basically, the total project cost estimate should be divided into land, building construction and general construction works, installations and equipment, various fixed assets, up-front and pre-operating costs, and working capital. However, the proposed financial structure of the enterprise should indicate the sources and standard conditions of equity and debt financing. Additionally, this section should also include operating costs.

7. Management Plan

The project report should indicate the following.

1. Firstly, Commercial experience of business promoters,

2. Secondly, Management team details,

3. Duties and responsibilities of team members,

4. Current personnel needs of the organization,

5. Company management methods,

6. Staff recruitment and training plans.

7. Lastly, Management programs and policies.

8. Financial Aspects

An expected income statement and balance sheet must be presented in the project report to judge the profitability of an enterprise. And also, it should show the estimated sales revenue, manufacturing costs, gross profit, and net profit that the proposed division can receive. In addition to the above, the budget, the cash flow statement must be prepared annually and for at least 3-5 years.

The income statement and cash flow projections must include a three-year summary with monthly details for the first and quarterly information for the second and third years. Basically, it must have the break-even point and also have a return on investment. And also, the inventory management system and accounting system are generally present in this section of the project report. All in all, the project report should indicate whether the business is financially and economically viable.

9. Technical Aspects

The project report provides information on the technology and technical aspects of the project. And also, it contains information about the technology chosen for the project, the production process, equipment capacity, treatment facilities, etc.

10. Implementation of the Project.

Each proposed business unit should draw up a project roadmap. However, it is necessary to indicate when the activities related to starting a
business can be completed. Additionally, implementation diagrams show the expected timeline for the preparation and completion of the project.

11. Social Responsibility

The offered units attract public attention. Hence its contribution to society in the form of employment, income, exports, and infrastructure. The firm’s products are listed in the project report.

Also Read: Project Roadmap – Why Do You Need it? How Can A Project Roadmap Help You? Tips, Issues

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