A project report is a detailed plan of action and particulars about the proposed project. The project report will be prepared for a plan of action to be undertaken which covers various aspects viz., technical, financial, marketing, management and social.

The company will submit the copies of the detailed project report to the banks and financial institutions for their participation in the scheme of finance and also for working capital requirements of the project. A project report consists of analytical study of the proposed project and conclusion can be drawn about its viability. The promoters capacity and competence will also reflect in the project report.

Information in Project Report:

A detailed project report, generally, contain the following information:


Introduction to Project and Industry:

a. Industry position in the world scenario,

b. Industry position in the country,

c. Value addition by the industry, and 


d. Profile of the industry in the country.

Project Details:

a. Promoters,

b. Registered office,


c. Location of the factory,

d. Line of activity,

e. Background of other directors,

f. Scheme of project,


g. Land and site development,

h. Building and civil works,

i. Plant and machinery,

j. Contingencies to plant and machinery,


k. Utilities,

l. Miscellaneous fixed assets,

m. Vehicles,

n. Quality control and testing equipment,


o. Erection and commissioning,

p. Technical knowhow fee,

q. Deposits,

r. Preliminary and preoperative expenses,


s. Working capital margin,

t. Schedule of implementation, and 

u. Management etc.

Raw Materials Details:

a. Requirement of raw materials,

b. Situation of raw material availability indigenously,


c. Feasibility of import of raw materials,

d. Areas from which raw material can be procured,

e. Suppliers of raw materials,

f. Annual requirement,

g. Transportation of raw materials,

h. Varieties and grades of raw material,

i. Cost of raw materials and transportation cost to the factory, and 

j. Linkages with suppliers of raw material.

Utilities Details:

a. Power,

b. Steam,

c. Compressed air,

d. Fuel,

e. Water,

f. Chilled water, and

g. Effluent and waste disposal etc.

Technical Details:

a. Plant capacity,

b. Capacity utilization,

c. Manufacturing process with flow chart,

d. Plant layout,

e. Product description and properties,

f. Packaging and its cost,

g. Technical know-how,

h. Plant and machinery details, and 

i. Plant and machinery suppliers.

Manpower Details:

a. Manpower requirement,

b. Organization chart, and 

c. Availability of manpower.

Financial Details:

a. Cost of project, with details to individual cost items,

b. Means of finance,

c. Assumptions made in financial projections about capacity utilization, prices of raw materi­als, power, fuel, transportation, packing etc., selling price, yield, salaries and wages, rates of depreciation, rates of tax, pre-operative expenses, proposed rate of dividend, method of working capital requirement computed etc.,

d. Estimates of production and sales,

e. Estimated cost of production and profitability,

f. Estimated funds flow statement,

g. Projected balance sheet,

h. Statement of debt service coverage ratio,

i. Statement of computation of working capital,

j. Statement of break-even analysis,

k. IRR calculations,

l. Payback period calculations,

m. Return on investment calculations,

n. Debt-equity ratio calculations,

o. Promoters’ contribution to Cost of project,

p. Promoter’s contribution to Total equity, and 

q. Workings for financial projections.

Marketing Details:

a. Present state of the industry,

b. Consumer preferences,

c. Market requirements,

d. Market segments,

e. Distribution channels,

f. Market characteristics of the product,

g. Export prospects and international market, and 

h. Marketing and selling arrangements.

Project Evaluation-Social Angle:

a. Analysis of critical factors,

b. Socio Economic benefit,

c. Labour availability,

d. Impact on ecology,

e. Foreign exchange earnings,

f. Value addition,

g. Import substitution, and 

h. Technology absorption etc.