Define a Project report & its objectives

meaning of a Project

Define a Project report may be defined as an interesting and challenging experience, which is often time-consuming, costly venture, and often complex. A project has a definite starting and finishing date, a clearly defined objective, and a defined budget. A project report is not only a piece of technical writing but also a medium of communicating to people about detailed aspects of the project.

Major components of a project report & its objectives

Major components of a project report

  • AIM/objective. A project has a definite aim. A project cannot be called finished until all the objectives/aims are fulfilled.
  • Team or CommitteeWhen the objectives of the project are chalked out, A committee is formed with the motive of working together to complete the project successfully.
  • Specific Time Period. A project is restricted to being completed within a time period. The deadline is always set before starting a project so that work on the project does not longer indefinitely.
  • Different Yardsticks. No two projects are alike, every project has varied problems, demands, and scope. For instance, no two flyover projects are alike, connecting different types of roads, bifurcations, breadth, etc. are certain tasks that make a project different.
  • Budget. Limited funds are provided for the project and it is expected that expenses should not exceed the pre-decided Budget. (vi) Different Stages/phases. Every project has to pass through different stages and each stage has to meet its time limit. If asked, a report on each phase has to be made available to the authorities.

Objectives of preparing a project report

  • The significant aim of preparing a project report is to let the reader be appraised of the situation how much of the work has been completed and how much needs to be done within a definite period.
  • There are four basic sub-objectives: (a) One is to establish familiarity with the problem.
  • Establishing your expertise helps in building up competence.
  • Try to maximize the reader’s insight. One can achieve this by using wisdom in drawing attention to the aspects of the problem, on which one’s results crucially depend. Lay stress upon parts of one’s analysis which simply explains what should be done and why it should be done. Explanation is only describing your necessity as inference is not sufficient enough. If the client does not understand what the problem is by reading your report, then the client is likely not to implement your recommendations.
  • Minimizing the reader’s effort. Due to a hectic schedule, the client may not have time to go through your report thoroughly. If you will provide them with quick and easy ways to go through your project report the client is more likely to read it and understand it well.

Importance of summary, conclusion & recommendations

A specific report of any company may consist of the following things:

1. Introduction to the project

General information about the project is provided. It includes mention of things which are to be done in the new project and probable expenditure of the project. The gist summary or main aspect of the project has to be given.

2. Management profile

 The introduction of the Management has to be given. This may include the following:

(i) Company profile: Brief description of the Company, i.e.,

    • What is the constitution of the company
    • Date of Incorporation
    • Registered office Plant location
    • Sector, i.e., Public/Private
    • Name of the Business House

(ii) Promoters’ background: Information about the promoters is included. This consists of the following:

    • Brief biodata of promoters, i.e., their name, address, age, education, their association with the company, etc.
    • Promoter’s association with other company(s), if any.
    • Promoter’s standing in the company.

(iii) Brief history/Current operations:

    • Brief History/Background of the Company in a chronological manner.
    • Tax status of promoters.

(iv) Management and organization:

    • It will talk about how the company will be managed.
    • Who is the Board of Directors?
    • Who will manage the particular departments?

3. Project details

 It consists of the main part of the report includes the following:

(i) The formal proposal: What actually, is it to be done?

(ii) Location: This includes

    • Arrangements were made to acquire the land.
    • Area and cost of the land.
    • Valuation basis and mode of payment. Details about how the building will be constructed

(iii) Manufacturing Process. It includes

    • The technical process to be employed.
    • Is the process labor/capital intensive?
    • Flow charts process.
    • Advantages/Disadvantages of alternative process.

(iv) Technical arrangements:

    • Proposed technical arrangements.
    • Person Persons recruited as technical experts for the project.

(v) Procurement of Machinery:

    • Reasons for the selection of equipment for the project.
    • Details about imported and indigenous plant/machinery along with specifications.

(vi) Raw Material:

    • Need of raw materials.
    • Any distribution control, if any.
    • The detailed arrangement of procuring raw materials.

(vii) Utilities: Manpower requirements. These include:

    • Category of employees.
    • Their recruitment plan, etc.

(viii)  Power and electricity:

    • Source of power supply, whether purchased or owned.
    • Maximum demand
    • Peak hour requirements – Cost of acquiring
    • Standby arrangements

(ix)  Effluent Disposal:

    • Details of the nature of the soil, water, and air pollution if any
    • Permission was obtained for the same.

(x)  Water:

    • Requirements for circulating, process, and Sources for water arrangements.
    • Capacity, storage arrangements. – Procedure for water treatment, if any.

(xi)  Steam/Fuel:

    • Requirement for fuel/steam.
    • Sources for processing the same
    • Capacity and type of the boiler with detailed specifications.

(xii)  Refrigeration

    • Requirement for refrigeration/air conditioning
    • Sources for availing the need for air-conditioning/refrigeration
    • Expenses

(xiii)  Compressed Air

    • Requirement for compressed air
    • sources for availing the compressed
    • An arrangement was made for it
    • Expenses/cost

4. Cost of the project

This is one of the major of projects as all concerned parties will be interested in it. This includes the cost of the project under the Following head

  • Land and Site Development
  • Building and Civil work
  • Plant and Machinery
  • Technical know-how
  • Miscellaneous Fixed Assets
  • Utilities and Electricals
  • Preliminary and Preoperative
  • Working capital margin
  • Contingencies

5. Means of financing

  • Land and Site Development
  • Building and Civil work
  • Plant and Machinery
  • Technical know-how
  • Miscellaneous Fixed Assets
  • Utilities and Electricals
  • Preliminary and Preoperative
  • Working capital margin
  • Contingencies

6. Government approvals

It requires fulfilling all formalities in order to obtain necessary government approvals.

  • Status of Government Approvals.
  • Specifications about Government Approvals to be taken.
  • Licenses to be obtained.
  • Clearances under the MRTP Act.
  • Approval of technical collaborations.

7. Marketing and selling

 Things to be kept in mind with regard to the following:

  • Brief information on products, major uses, target market, competitors, etc.
  • Future, and existing demand
  • Export Possibilities
  • Area of Marketing, i.e., International, Indigenous marketing.
  • Methods to be employed
  • Institutional sales
  • Details about whether direct methods will be employed.

8. Financing Summary

  • Projected Financial Summary
  • Expected Production and Sales
  • Projected Profitability Statement
  • Basis assumption for profitability
  • Projected Balance Sheet
  • Projected Cash Flow Statement
  • Calculation of Debt Service Coverage Ratio
  • Calculation of Working Capital Requirements
  • Term loan and Interest Repayment schedule
  • Calculation of Break-Even Point

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