All about project report for financing

Updated on Jan. 10, 2022, 10:22 a.m.

The project report is a unique document, giving statistics about the project proposal to determine the chances of the proposed plan or activity in the coming years. Indian economy is growing at a greater pace and this is credited to the efforts of businessmen willing to expand the business in India and overseas. In order to take up the bank loan for establishing a new start up business, the borrower must present the project report for the growth and development of the business in the coming years.

The project report will consist of detailed information like:

  • Office block and Land required.
  • Capacity per annum.
  • Machinery and Equipment.
  • Manufacturing Process.
  • Prices.
  • Specifications.
  • Water and Power.
  • Dedicated Manpower.
  • Marketing.
  • Cost of the project.
  • Production.
  • Salary.

Finance is the bloodline of any business and if you have a great idea and do not have money to execute it, you will look for loans from financial institutions.

The government has come up with loan packages especially for the MSME (Micro Small and Medium Enterprises) and small scale industries.

COMPONENTS OF A PROJECT REPORT

The project report will consist of various components given below:

  • Introductory Page

This gives brief information about the nature of the business enterprise. It also deals with the aim and objectives of the nature of business you have chosen and its impact in the coming years.

  • Summary of the project

It deals with the complete state of the nature of business and the time taken in manufacturing the product. It shows the complete budget in a nutshell.

  • Scope of the project

Deals with the amount of work you have predicted and the amount of work completed. A short evaluation of the results and strategy for the future is given.

  • Details about the promoters

They are the middleman for the company and play a major role in promoting the products. Furthermore, this givesinformation about the promoters, educational qualifications, experience and their achievements.

  • Products and Services

Nature of products and services offered to the people will be discussed here.

  • Information about location

Your place of work including the office address, head office is given here.

  • Plant and Machinery details.

It gives complete details about the machinery and components used and the details about the working environment.

  • Raw Materials.

Gives the details about the raw materials used and the place where they are extracted, processed and the cost of raw materials.

  • Understanding the market strategy.

We can understand and analyse the size of the market and analyse modes of trade like online, offline and others.

  • Customer details.

Gives detail about the customer, taste and dislikes and helps in understanding and analysing the target audience and feedback given by them.

  • Employee information.

This helps in understanding the complete details about the employees, nature of work, educational qualifications, job details and their role in the previous companies.

  • Cost of the project.

The entire cost of the project used to execute the work, deals with the indirect and direct costs.

  • Fund Utilisation.

You get the details about allocating money for purchasing stocks, raw materials, and other useful information.

  • Mode of Financing.

This helps us to know the source of funding, like financial agencies, business partners, banks and others.

  • Balance Sheet.

A balance sheet is an important document dealing witha company’s assets, liabilities, capital structure and shareholder’s equity at a particular moment.             

  • Profit and Loss Statements.

This deal with the amount of profit the company will earn and the amount of profit the company is making at present. It also gives the details of loss and is included in the Project report.

  • Cash Flow/Fund Statements.

This deals with the complete information given by the corporation and the government about the flow of money. It is included in the Project report.

  • General Ratios.

You will need to analyse and calculate the financial statements using the key ratios and their results. The general ratio is also known as the profitability ratio determined in proportion to the sales.

  • Conclusions.

You will understand the complete reports and analyse the advantages, disadvantages and the risk factors.

TIME:

To be honest the process of making a good project report depends on the person who does it. If you are an individual creating a project report, it takes approximately 3 to 4 week’s time. Professionals like Ex-bankers, CA, and other financial experts will take 1 week time to create a project report.

ADVANTAGES OF PROJECT REPORTS

  • It helps you and your shareholders to track the progress of your business
  • These are ideal in identifying risk factors and mitigate them.
  • Helps in effective cost management.
  • Gives you an insight into the performance of the project.
  • Provides control of the establishment and ideal in analysing the stagnation, growth, progress of employees and others.
  • There is a good learning curve offered by project reports.

So the wait ends here. Visit Banking91.com to create a good project report for loan.

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