What is a project report?

The project report is a document, which gives the complete information of the proposed plan/activity. The project report contains the following information:

What is Projected Balance Sheet & Projected Income Statement?

Projected Balance sheet is a statement of financial position or statement of financial condition. It gives the financial information of the future activities/project. A projected Balance sheet includes the data for assets, liabilities and equity, also called net worth. The Assets includes the Building, Equipment’s, Investment, inventory, cash and customer receivable.

Liabilities include loans, accounts payable, mortgages and accrued expenses.

Projected income statement is an estimate of the financial results that you'll see from your business in a future period of time. A Project income statement is to figure out how much money the company will generate in future.

What is CMA Data?

CMA Data means Credit Monitoring Arrangement data. It is a statement of financial information related to a company’s future plan. CMA data is required for Project Loans, Term Loans and Working Capital Limits. This data is prepared by experts to get the loan from bank or any other financial institution. CMA Data is a systematic analysis of working capital management of the borrower and the purpose of this statement is to ensure the use of funds effectively.

CMA data generally include 2 years Audited Financials and 3 future years Financial Projection of company, Fund flow statement, Changes in Working Capital report, Ratio analysis and Maximum Permissible Bank Finance report.

Contents of the Project Report:-

  • General Information of Proposed or existing product
  • Promoter Details (Name, Educational Qualification, Project related experience)
  • Location of the project, lease or freehold, Locational advantages.
  • Land area, Construction area, Cost of construction, detailed plan and estimate along with plant layout.
  • Details of Plant & machinery required, cost, capacity, suppliers, and cost of miscellaneous assets.
  • Details of Production Process, Process chart, Technical information, technology alternatives available, production programmer.
  • Utilities (Water, power, steam, compressed air requirements, cost estimates, sources of utilities)
  • Transport and Communication (Mode, Possibility of getting, costs)
  • Raw Material (List of Raw material required, expected Quality of product and Quantity, Sources of procurement, cost of raw material, tie-up arrangements)
  • Manpower (Requirement of Manpower as skilled and semi-skilled, Sources, Cost, Requirement & Cost of training)
  • Products (Details of Product mix, Estimated sales, Distribution channels, Competitions and their capacities, product standard, input-output ratio)
  • Market (Product Selling Plan, End-users of product, Sale of product in local, national or international, sales promotion, and proposed market research)
  • Working Capital (Working capital required, sources of working capital, nature and extent of credit facilities)
  • Requirement of Funds (Break-up of project cost)
  • Cost of Production and Profitability.
  • Statutory Requirements (like Pollution Control and Public Safety)
  • Break-Even Analysis
  • Schedule of Implementation

Benefits of Project Report:-

  • To Evaluate organizational goals
  • To know the expected inputs & outputs
  • To gain financial support from financial institutions
  • Work as Guidance
  • Ensure Survival
  • Assess Profitability