Key Points of the Project Report remember while Making It:
The Project Reports should be like conference papers; Concise and focusing on what you did. While making the project whatever the subject the below points are very important for making the standardize and Professional format of the project.
a) Format:
The format of project report should be made in such a way so can explain the business ideas. it may include diagrams, pictures, Tables, Chart, and Graf. Etc.
b) Introduction:
While making the project our introduction part gives the importance of the topic, where is it used and a summary of what we want to say in this report (Here, I also say to about the what subject of project report we discuss, “Project Report for loan approval”. And an overview of the rest of the report.
c) Background:
From this part, we discuss the format and Examples choose by me for the project report of Project report for loan approval. For the loan approval project, we give the background related to our business, what we serve to customer from this business idea, what customer wants and what I give to us, and how our work is different from others. It means the details of our agenda.
d) Executive Summary:
A project report must state the objectives of the business and the methods through which the business can attain success. A brief description of the project must be stated and must give details about the following:
Location of the site,Raw material requirements,The target of production,Area required for the work shed,Power requirements,Fuel requirements,Water requirements,Employment requirements of skilled and unskilled labor,The technology selected for the project,Production process,Projected production volumes,unit prices.
e) Management Plan:
The project report should state the following;
Business experience of the promoters of the business,Details about the management team,Duties and responsibilities of team members,Current personnel need of the organization,Methods of managing the business,Plans for hiring and training personnel,Programs and policies of the management.
f) Financial Aspects:
In order to judge the profitability of the business a projected profit and loss account and balance sheet must be presented in the project report. The usual repayment for a long-term business bank loan is usually up to 5 to 7 years with interest (10 % to 15%) and some cases an extra 6 months duration given by the bank for interest payment in the initial time (Moratorium Period). It must show the estimated sales revenue, cost of production, gross profit and net profit likely to be earned by the proposed unit. In addition to the above, a projected balance sheet, cash flow statement and funds flow statement must be prepared every year and at least for a period of 3 to 5 years. The income statement and cash flow projections should include a three-year summary, detail by month for the first year, and detail by quarter for the second and third years. The Break-even point and rate of return on investment must be stated in the project report. The project report must state whether the business is financially and economically viable.
g) Annexure:
Annexure implies a legal document, at the end to validate the text written in the main document. It is used to provide you with information about what items are required for our project, along with their relevant format. In the project of the bank, loan annexure contains the;
Cost of Project & Means of finance.Own contribution & Cash Credit (CC)Details of Capital Expenditure in the project.Fixed assets, Current assets and their depreciation.Direct Expenses and Indirect Expenses.Repayment of Term loan and interest.Project performance, profitability and Repayment.Revenue generation, cash flow statement and Break-Even point.Income TaxRatio, Debt service ratio and IRR & Payback period
h) Conclusion:
The conclusion part is only that CMA has a wide knowledge of each & every data to be incorporated in the report. The project report has quantitative data of sales, Projected profit, Inventory Mgt. and production aspects & all very well seen while drafting it. So, it can be said, we can provide the assurance to financial institutions / Banks from our side to control the project according to the project description. Note: The Author views are personal & not responsible for any financial loss.
