project report – a series
·
Details
about project report
The Project Report is an important document; it is a
proposal of proposed plan or business activity. The project report contains
detailed information about following aspects.
1)
– Identity of an Entrepreneur with
detailed address.
–
Name of the Enterprise with detailed address
–
Type of Enterprise (Proprietary/Partnership/Limited Company, etc)
–
Entrepreneurs background
–
Details of services or products.
–
About availability of market
–
Product process
–
About the competition
–
About availability of raw materials (Indigenous/Imported)
2)
Plan : Information about capital
requirement
a)
Land and building area details
(Owned/Rental), The Price or Rent details
b)
Machinery details. It includes the
information about:
i)
Title and description of machine
ii)
Indigenous/Imported
iii)
Machinery details with production
capacity
iv)
Power required
v)
Price, etc total of all above
You
also have to consider –
i)
If the machinery is imported the
different taxes
ii)
Octroi
iii)
Transportation charges
iv)
Machinery erection/installation expenses.
Total of all above
c)
Testing equipments
d)
Other financial investments like
i)
Contingency expenses
ii)
Power connection
iii)
Jigs & fixture
iv)
Office equipment & furniture etc
e)
Total fixed capital expenditure
(a+b+c+d)
f)
Expenses on manpower
i)
Office staff
ii)
Technical staff. Total of per month
salaries
g)
Raw material details. Here one has to
calculate requirement of raw materials. It includes:
i)
Whether it is indigenous or imported
ii)
Requirement for one month.
iii)
Weight and numbers
iv)
Price; Total of all above points
h)
Other expenses such as:
i)
Power
ii)
Promotion & travelling
iii)
Communication & stationery
iv)
others
i)
Total working expenditure (f+g+h)
j)
Working capital requirement for 3 month
(Total working expenditure X 3)
k)
Total capital investment, i.e.
–
Fixed capital (E)
–
Working capital (J) Total
l)
Arrangement of capital investment.
Here
the fixed capital & working capital is divided into
i)
Own investment
ii)
Loan from the financial institution
iii)
Working capital and total of the same;
(It would be divided as per the scheme offered by the institutions)
m)
Annual sales; it includes,
i)
Production of different services/products
ii)
Total production
iii)
Rate
iv)
Total sales price – Total of the same
n)
Annual production expenses; it includes,
i)
Annual working expenditure (i X 12)
ii)
Repairs & maintenance (3 & ½ %)
iii)
Depreciation on machinery (25%)
iv)
Depreciation on building (10%)
v)
Interests of investment……Total of all.
o)
Total
profit i.e. Annual sales – Annual production expenses (m-n)
p)
Annual taxes
q)
Net profit i.e. Total profit – taxes
(o-q)
r)
Addresses of Machinery suppliers
s)
Addresses of Raw material suppliers
t)
Signature of entrepreneur
Preparation
of project report requires knowledge about Calculations, Break Event Point
(BEP) analysis, Ratio analysis like Return on Investment (ROI), etc. One has to
learn, read and write his/her own project report. It is always better to
understand & know your project well.
·
Availability
of standard profiles/pro forma for preparation of project report.
The
model project profiles are available with CEDs, TCOs, Banks, MSME, DIC etc
organizations. One may also get blank pro forma of the reports form financial
institutions, CEDs and TCOs. However, the available project profiles have to be
recast in accordance with specific needs of the entrepreneurs and the current
prices of inputs.
·
Support
agencies to prepare project report.
Agencies namely
Maharashtra Industrial & Technical Consultancy Organization (MITCON);
organizations registered with MSME under RGUMI Project in the States, Chartered
Accountants, DIC, SFCs, NSIC, MSME institutions also support to prepare
projects.
·
Support
agencies for selection of production process & equipments.
Micro
Small and Medium Enterprises Development Institute; Design and Development
Centres like MSME Technology Development Center/Tool rooms; R&D agencies
like NRDC, CSIR, Regional Research Laboratories; TCO’s, NSIC are the support
agencies, in this regard.
No comments:
Post a Comment