WRITING A

PROJECT
REPORT
PROJECT: MEANING
A project may be defined as a complex of
non routine activities that may be
completed within a set time period and
with a given amount of resources.
It has definite starting and finishing dates;
predetermined objective; a predetermined
budget.
A project is usually self contained to
permit financial and commercial analysis.
A project could be eastablishmet of a new
factory, modernisation of plant and
machinery, undertaking a new research,
developing a new product. It could be
related to any field/dimension of a
business be it finance, corporate social
responsibility, marketing plans.

According to Harrison, a project is a non-

routine,non repitetive one-off undertaking
normally with discrete time , financial and
technical performance goals.
Objective of writing a project report
It helps the reader be appraised of the situation that how much
work has been completed and how much needs to be done
within a definite period .
It helps an Entrepreneur judge the viability & profitability of a
given enterprise proposal. If it reveals a proposal to be
unviable, the Entrepreneur will avoid a grave error of investing
in an Unsound Venture.
It is the basis for a Development Bank to sanction Long
Term Financial Assistance & a Commercial Bank to provide
Working Capital Assistance.
It aids the process of firming up Technical Arrangement ,
Choosing a Location, Selecting Plant & Machinery,
Determining Man Power , & Utility needs etc.. reqd for
Project Implementation.
 It educates the Entrepreneur regarding the Degree of Risk
underlying the Enterprise Proposal.
Helps minimize readers effort.
Helps maximize readers insight by drawing attention to the
problem and what should be done. If the reader does not
understand the problem, he is likely not to implement your
recommendations .
 FEATURES OF A PROJECT
This slide talks about the characteristics of a project
which are as follows:
1. CLEAR FOCUS : A project has fixed set of
objectives. These must be very clearly stated and
understood.
2. FIXED TIME SPAN : A project is always time bound and
cannot continue indefinetely.
3. SEPARATE SET UP GENERALLY : Generally, a
separate organisational structure or team is required to
complete a project. Sometimes, managers are hired on the
basis of contract completion and are paid on hourly or
weekly basis.
4. LIFE CYCLE: Like a product, a project also has a life
cycle from conception to commission. The life cycle
consists of several interconnected stages like conceptual
phase, definition phase, planning phase, operational
phase, post accomplishment phase.
 Uniqueness : Projects are as unique as
fingerprints of individuals. No two
projects are alike in their execution even
if their plans are different. The
performance and deployment will differ
even if two projects confirm to same
standards and quality. For example :
Delhi metro is not identical with metro
rail projects in other cities.
SPECIFIC BUDGET : A project has a
specific budget and is expected to be
completed with the assigned funds.
 Complexity : A project is a complex web of
things, people and environment.
A project team consists of people from different
disciplines. They apply their knowledge, skills,
and experience towards a total performance

Risk and uncertainty: Every project involves risk

and the degree of risk differs from project to
project. An ill defined project faces a higher
degree of risk and uncertainty

Customer specific : Projects are not readymade

articles. Rather, they are customer specific. It is
designed and executed to meet specific needs.
 Contents of a Project Report :
A Project Report needs to be done / prepared with great care &
consideration. The Important Contents of a Good Project Report are given
below :
a) General Information :
Information on Product Profile & Product Details. The gist or
summary of main aspects and probable expenditures id to be given.
b) Promoter(s) :
His / Her / Their Educational Qualification , Work Experience , Project
related experience, special achievements.
Company Profile
Management and organization of the company.
c) Location :
Exact proposed location of the Project, lease or freehold, locational
advantages.
d) Land & Building :
Land areas, built up area, type of construction, cost of
construction, detailed plan & cost estimate along with Plant layout.
e) Plant & Machinery :
Details of Machinery reqd , Capacity, Suppliers, Cost, Various
Alternatives Available, Cost of other Miscellaneous Assets.
f) Production Process :
Description of Production Process , Process Chart, Technical
Know How, Technology Alternatives Available, Production
Programme etc.
g) Utilities :
Water , Power, Steam, Compressed Air Requirements, Fuel,
Coal / Oil etc., Cost Estimates, Sources of Utilities.
h) Transport & Communication :
Mode, its associated Costs.
i) Raw Material :
List of Raw Materials reqd by Quality & Quantity , Sources
of Procurement, Cost of Raw Materials, Tie Up Arrangements, if
any , for Procurement of Raw Materials, Alternative Raw
Materials , if any.
j) Man Power :
The Requirement such as Skilled, Semi Skilled, & Un Skilled
(Helpers), Places of Manpower Availability, requirement of
Training & its Cost.
k) Products :
Product Mix, Product Standard, Estimated Production & Sales
Figures, Alternative Product Substitutes , if any.
l) Market :
End Users of Products, Distribution of Market as Local,
National, International, Trade Practices, Sales Promotion devices
etc..
m) Requirement of Working Capital :
Working Capital Reqd , Sources of Working Capital, need
for Collateral Security, Nature & extent of Credit facilities
offered & available.

n) Requirement of Funds :
Break up of Total Project Cost in terms of Costs of Land,
Building, Plant & Machinery, Misc. Fixed Assets, Preliminary
& Pre -Operative Expenses, Contingencies & Margin Money
for Working Capital, Financial Arrangements for meeting the
Cost of Setting up of the Project.

o) Cost of Production & Profitability of first five years,

Break Even Analysis, Schedule of Implementation etc
p) Means of Financing:
Procurement of finances for covering project costs,
Public issue, Promoters Contribution, term loans,
etc.
q) Government approvals:
Licences to be obtained, clearance under MRTP
Act, approval of technical collaborations.
 The feasibility
Guidelin report lies in
between the
es for formulation stage
and sanction stage.
writing a
project The project
formulation stage
report involves
identification of the
project objectives
and other phases
deal with execution.
 SUMMARISATION OF PROJECT GUILDELINES

Capital needs
and costs
Marketin
g plan
GENERAL INFORMATION

PRELIMINARY ANALYSIS PROJECT DESCRIPTION

OF INFORMATION

Financial
aanalysis
General information Preliminary analysis
of alternatives

This should contain present data about

the gaps between output and demand,
The feasibility report should the data on capacity that would be
available from projects that are
include the analysis of currently in production or
industry to which it belongs. implementation at the time at which
It should include the past report is prepared.
performance of the industry.
All options that are technically feasible
should be considered at this stage.
The description on the type The location of the project and its
of industry should also be implications should also be looked into.
given i.e the priority of The profitability and costs of different
industry, increase in options should also be looked into.
production, allocation of The rate of return on investment should
investment funds , choice of calculated and mentioned o n the
report.
techniques etc.
 Project
description
Marketing plan

The feasibility report should provide a

brief description about the
process/technology chosen for the
implementation of the project. It should cover the following items
Information relevant for determining related to marketing plans:
the optimality of location should also 1. Demand and prospective supplies
be included in this. in each of the areas to be served.
The report should also contain a list of
2. The methods and the data used
capital equipments and also a list of
operational requirements of a plant, for making estimates for domestic
requirements of water and power, supply and choice of market areas
transport cost and activity wise should be presented.
phasing of construction and factors 3. It should contain an analysis of
effecting it.
past trends in the prices.
4. Estimates of the g=degree of
price sensitivity should be
presented.
Capital requirements Financial
and costs.
Aanlysis

These estimates must The purpose of this analysis

be reasonably is to measure viability of the
project.
complete amd must A proforma balance sheet for
be properly estimated the project data should be
Information on all presented too. The feasibility
report should take into
items of costs should account Income tax rebates,
be carefully collected i ncentives for backward
and presented. areas , accelerated
depreciation etc.