The document provides guidance on preparing an effective project report. It should include a background and business description section covering the promoters, existing business status, management, and infrastructure facilities. It also needs a market study analyzing the industry, market size, competition and information sources. The project section describes the entrepreneur's vision, the project's unique selling proposition, and how it evaluates competition. The implementation section outlines the project team, activities schedule, and potential issues. Finally, the financials section estimates project costs and revenues, funding sources, and key financial metrics like break-even point, cash flows, and returns. An accurate yet realistic financial model is crucial to demonstrate the project's viability to lenders and investors.

1. PREPARATION OF PROJECT
REPORT
Oct 11, 2009
CA. SUNNY SABHARWAL

2. What is a Project Report
Hisar Branch Preparation of Project Report
• First introduction to theProject
– Even before meeting the Promoters
• De medtocontainall relevant & updated information
• Matter or Format?
– Butformatisstill indispensible
• Long or Short?
– Timehasvalue
• Get a pro
– Did I hear CharteredAccountants?

3. Purpose of Project Report
• FundingfromLENDERS
• FundingfromINVESTORS
What’s the difference!!!
Hisar Branch Preparation of Project Report

4. Background&Busines Description
Market Study
The Project
•
•
•
•
•
Project Implementation
Project Financials
General Contents of a Project Report
PROJECT
REPORT
 Background
 Market Study
 TheProject
 Project Implementation
 Project Financials
A project will rarely score a 10
in all aspects. Right job is to
identify the strong point and
highlight it the most in the Project
Report

5. Project Report
Background & Business Description
Market Study
The Project
Project Implementation
Project Financials
Hisar Branch Preparation of Project Report

6. Background and business description
• Executive Summary*
• Promoters: Promotersand their background,
profesional qualifications,experience,etc.
• Existing Status of Business: existing activity,
productline
• Management: Directors,Managers–their
profes ional background and expertise,
ar angementsfor Human Resource
Development, etc.
• Infrastructure facilities: Property,Plant&
Equipment
• Clientele: Present and prospectiveclients
• Strategic tie ups: Technical and/orFinancial
What does a lender/investor see
• Promoters: Soundexperiencewithproven
capabilitiestoexpandandin ovate
• Existing Status of Business: Ideaof Project team
should beclear about wherethey areand what
they want to achieve
• Management: Strong, experienced team with
qualifiedperson el
• Infrastructure facilities: Quality (latest?) and
useful lifeof P E
• Clientele: Clientswith visibility (depict quality),
government contracts(ensurerevenues& clean
status) prefer ed
• Strategic tie ups: Technical and/orFinancial
• Hisar Branch Preparation of Project Report

7. Project Report
Background & Business Description
Market Study
The Project
Project Implementation
Project Financials
Hisar Branch Preparation of Project Report

8. Market Analysis
Hisar Branch Preparation of Project Report
• What is the business : Product or Service
• Industry – IT, Realty, Power, Automobiles, FMCG, etc.
• B2B and/or B2C
• Govt. regulations
• Market size, competition
• Sources of Information –
– Dedicatedstudyby profesional firms(likeRE)
– Industry media
– Ministry’s/Department’swebsite

9. Project Report
Background & Business Description
Market Study
The Project
Project Implementation
Project Financials
Hisar Branch Preparation of Project Report

10. About the Project
• What’sthevisionof entrepreneur?
– What will hedo and for how long
• Whereisthevaluebeingad ed: USP?
– Is it location, target customer base, price
strategy or something else
• Howthecompetitionisbeingevaluated?
– Direct and indirect
for Dish DTV competition
is not only DTH, but cable
operators too
Hisar Branch Preparation of Project Report

11. Project Report
Background & Business Description
Market Study
The Project
Project Implementation
Project Financials
Hisar Branch Preparation of Project Report

12. Project Implementation
• Project SWOT analysisand strategy
– Why here and not in Introduction Section
 Bet er understanding at thisstage
• Project coreteam & resources
– Roleand responsibilitiesof each should beclear
• Scheduleof Activities
– Withtimelines
• Pos iblehiccups
A GANTT CHART is
useful
Hisar Branch Preparation of Project Report

13. Project Report
Background & Business Description
Market Study
The Project
Project Implementation
Project Financials
Hisar Branch Preparation of Project Report

14. Project Financials … 1
Hisar Branch Preparation of Project Report
• Project Costs
– Tobeincluded–
 Cost of land and land development
 Cost of Building & Structures
 Cost of Plant & Machinery
 Permanent Working Capital
 Preliminary Expenses–legal, traveling, brokerage
– Challengeistoestimatethesereasonably
– But how –
 Discus ionswith Client & Others(industry experience)
 Industry / Company reports

15. Project Financials … 2
• Project Revenues
– Findin ovativeMeans
– Beterberealistic–market knows everything
• Funding
– Matchingof CashFlowsprinciple
 Timingof InflowsandOutflowstocoincide
– Leasemodel or capex model
– Remember to maintain thebalance
A well prepared
FINANCIAL MODEL
e clar
Hisar Branch Preparation of Project Report

16. Project Financial … 3
Hisar Branch Preparation of Project Report
• Some numberslenders/investorsareinterestedin–
– Project Cost
– Break-evenpoint/time
– DSCR
– CashFlowAnalysis–
 NPV; IRR
 Profitability Index
– ROE
– Debt-Equity Ratio

17. Projects???

18. Checklist for preparation of a Project Report
£ Clear and complete understanding of project
£ Reliablesourcesof information
£ Precisebut presentabledata
£ Command over numbers
£ Credibleclientandcredibleinvestor
£ Confidentiality
Hisar Branch Preparation of Project Report

19. THANK YOU
CA. Sun y Sabharwal
+91 9 586 7 76
sabharwal.sun y@ yaho .com