Define a project or what is the meaning of a Project.

More… A project may be defined as an interesting and challenging experience, which is often time-consuming, costly venture, and is often complex. A project has a definite starting and finishing date, a clearly defined objective, and a defined budget. A project Report is not only a piece of technical writing but also a medium of communicating to people about detailed aspects of the project.

What are the major components of a project report?

Major components of a project report:

• AIM/objective. A project has a definite aim. A project cannot be called finished until all the objectives/aims are fulfilled.
• Team or Committee. When the objectives of the project are chalked out, A committee is formed with the motive of working together to complete a project successfully.
• Specific Time Period. A project is restricted to being completed within a time period. The deadline is always set before starting a project so that work on the project does not longer indefinitely.
• Different Yardsticks. No two projects are alike, every project has varied problems, demands, and scope. For instance, no two flyover projects are alike, connecting different types of roads, bifurcations, breadth, etc. are certain tasks that make a project different.
• Budget. Limited funds are provided for the project and it is expected that expenses should not exceed the predecided Budget.. (vi) Different Stages/phases. Every project has to pass through different stages and each stage has to meet its time limit. If asked, a report on each phase has to be made available to the authorities.

What are the objectives of preparing a project report?

• The significant aim of preparing a project report is to let the reader be appraised of the situation that how much of the work has been completed and how much needs to be done within a definite period.
• There are four basic sub-objectives: (a) One is to establish familiarity with the problem.
• Establishing your expertise helps in building up the competence.
• Try to maximize the reader’s insight. One can achieve this by using wisdom in drawing attention to the aspects of the problem, on which one’s results crucially depend upon. Lay stress upon parts of one’s analysis which simply explains what should be done and why it should be done. Explanation is as only describing your necessary as inference is not sufficient enough. If the client does not understand what the problem is by reading your report, then the client is much likely not to implement your recommendations.
• Minimizing the reader’s effort. Due to hectic schedule, the client may not have time to go through your report thoroughly. If you will provide them with quick and easy ways to go through your project report the client is more likely to read it and understand it well.

What is the major framework of a Project Report?

Or

What are the major contents of a Project Report?

Or

How is the text of a project report formed?

Or

What is the importance of summary, conclusion, and recommendations In a Project Report?

A specific report of any company may consist of the following things:

1. Introduction to the project. General information about the project is provided. It includes mention of things which are to be done in the new project and probable expenditure of the project. The gist or summary or main aspect of the project has to be given.
2. Management profile. The introduction of the Management has to be given. This may include the following:

(i) Company profile. Brief description of the Company, i.e.,

• What is the constitution of the company
• Date of Incorporation
• Registered office
• Plant location
• Sector, i.e., Public/Private
• Name of the Business House

(ii) Promoters’ background. Information about the promoters is included. This consists of the following:

• Brief biodata of promoters, i.e., their name, address, age, education, their association with the company etc.
• Promoter’s association with other company(s), if any.
• Promoter’s standing in the company.

(iii) Brief history/Current operations:

• Brief History/Background of the Company in a chronological manner.
• Tax status of promoters

Management and organization:

• It will talk about how the company will be managed.
• Who is the Board of Directors?
• Who will manage the particular departments?

3. Project details. It consists of the main part of the report includes the following:

(i) The formal proposal. What actually, is it to be done?

(ii) Location. This includes

• Arrangements were made to acquire the land.
• Area and cost of the land.
• Valuation basis and mode of payment. Details about how the building will be constructed

(iii) Manufacturing Process. It includes

• The technical process to be employed.
• Is the process labor/capital intensive?
• Flow charts process.
• Advantages/Disadvantages of alternative process.

(iv) Technical arrangements:

• Proposed technical arrangements.
• Person Persons recruited as s technical experts for the project.

(v) Procurement of Machinery:

• Reasons for the selection of equipment for the project.
• Details about imported and indigenous plant/machinery along with specifications.

(vi) Raw Material:

• Need of raw materials.
• Any distribution control, if any.
• The detailed arrangement of procuring raw materials.

(vii) Utilities:

Manpower requirements. These include:

• Category of employees.
• Their recruitment plan, etc.

Power and electricity:

• Source of power supply, whether purchased or own.
• Maximum demand
• Peak hour requirements – Cost of acquiring
• Standby arrangements

Effluent Disposal:

• Details of nature of the soil, water, air pollution if any
• Permissions were obtained for the same.

Water:

• Requirements for circulating, process, Sources for water arrangements.
• Capacity, storage arrangements. – Procedure for water treatment, if any.

Steam/Fuel:

• Requirement for fuel/steam.
• Sources for processing the same
• Capacity and type of the boiler with detailed specifications.

Refrigeration

• Requirement for refrigeration/air conditioning
• Sources for availing the need of air-conditioning/refrigeration
• Expenses

Compressed Air

• Requirement for compressed air
• sources for availing the compressed
• An arrangement made for it
• Expenses/cost

4- Cost of the project. This is one of the major of the projects as all concerned parties will be interested in it. This includes the cost of the project under the Following head

• Land and Site Development
• Building and Civil work
• Plant and Machinery
• Technical know-how
• Miscellaneous Fixed Assets
• Utilities and Electricals
• Preliminary and Preoperative
• Working capital margin
• Contingencies

5. Means of financing:

• Procurement of Finances for covering the project cost.
• An arrangement made so for raising the finance.
• What will be the public issue?
• What will be the promoter’s contribution?
• What would be the term loan?
• For internal accruals, the basis of estimation.

6. Government approvals. It requires fulfilling all formalities in order to obtain necessary government approvals.

• Status of Government Approvals.
• Specifications about Government Approvals to be taken.
• Licenses to be obtained.
• Clearances under MRTP Act.
• Approval of technical collaborations.

7. Marketing and selling. Things to be kept in mind with regard to the following:

• Brief information of products, major uses, target market, competitors, etc.
• Future, and existing demand
• Export Possibilities
• Area of Marketing, ie, International, Indigenous marketing.
• Methods to be employed
• Institutional sales
• Details about whether direct methods will be employed.

Financing Summary:

• Projected Financial Summary
• Expected Production and Sales
• Projected Profitability Statement
• Basis assumption for profitability
• Projected Balance Sheet
• Projected Cash Flow Statement
• Calculation of Debt Service Coverage Ratio
• Calculation of Working Capital Requirements
• Term loan and Interest Repayment schedule
• Calculation of Break-Even Point

Give a specimen of a Project Report ?

Given below is a sample report to help students understand the structure of a Project Report:

PROJECT REPORT
On
Pharmaceuticals Formulations Programme of
Jeevan Dhara Pharmaceuticals Limited

A. Introduction to the Project:

1. Jeevan Dhara Ltd. (JDL) an existing profit making company is engaged in the business of trading and selling of pharmaceuticals. The company was incorporated on 2nd September, 1998. A brief company profile, giving the proposed installed capacity and the various formulations, to be manufactured by JDL is given Annexure-I
2. JDL now proposes to:

• Setup facilities for the manufacture of pharmaceutical formulations tablets, capsules, injectables (powder and liquid).
• Setup a modern R&D centre to develop new processes and products in the field of Pharmaceuticals.
• Augmentation of long-term working capital for the proposed project.

3. The cost of the above project is estimated at 1,025 lakhs and is Proposed to be financed by way of public issues of 61.00 lakh equity shares of 210 each for cash at par aggregating to 2610 lakhs (including promoters’ contributions of 275 lakhs), a term loan of 400 lakhs and a state subsidy of 15 lakhs.
The purpose of this appraisal is to enable the company to raise funds in the shape of equity capital from the primary market and seek term loan assistance from Bankers/Financial Institutions.

B. Management Profile:

1. Company Profile. A brief company profile of JDL is as under.

Constitution : Public Limited Company
Date of Incorporation : 02.09.1999
Registered Office : 15, Shopping Complex, No. 6
Naraina Vihar, Phase I, Delhi
Plant Locations : Plot No. XY-4000 (i) & (ii), Phase VI
Bawal Industrial Area, Haryana
Sector : Complete plant for the manufacturing of
Project Type formulation, tablets, capsules, and injectables.

2. Promoters Background. The company was incorporated as a Public Ltd. company under the name of Jeevan Dhara Ltd. on 02-09-99 by Mr. R. Khanna, Mr. K.D. Sen, Mr. Verma, and Mr. Varun Vashishth.

• Mr. R. Khanna, Chairman, aged 45 years is Post Graduate of Science with Chemistry. He has been associated with JDL. from the very beginning. He has been in Drug industry from last 15 years and gained varied experience in this industry. He has been a consultant to a number of pharmaceutical companies since 1986 and has promoted an export company in the name and style of “Jeevandhara Export Pvt. Ltd.” where he is holding the position of Managing Director. The company has achieved a sales turnover of 391.00 lakhs (100% exports) in the first half of the financial year ending 20th September, 1997.
• Shri K.D. Sen, Managing Director, aged 45 years has been associated with JDL, since incorporation.

Position of Mr. K.D. Sen in other group companies is as under

• Mr. Verma Executive Director, aged 43 years is a Post Graduate with diploma in Pharmacy has been associated with various Medical Institutions and has got rich experience in institutional sales and C&F operations.

The position of Mr. Verma in other group companies is as under:

• Mr. Varun Vashishth, Director, aged 45 years is a Science graduate having over a decade’s experience in the overall working with pharmaceutical industry including consultancy, distribution, export and O&M activities.

3. Brief History/Current Operations. The company was incorporated as a Public Ltd. Company in September, 1999 to manufacture and market pharmaceuticals in India as well as in the international market. Company started business with the export of its products to countries like Africa, Europe and South East Asian countries through its promoter company M/s. Jeevan Dhara Exports Pvt. Ltd.

During the year 1994-95, the company made a modest beginning. During the first 6 months of the current year, the company had a sales of 28.79 lacks with a net profit of (2.58 lacks, The company with the start of modest beginning, is aimed at substantial growth.

The financial figures for the first 6 months of operations are given below:

The company has confirmed Orders of about ₹90 lakhs.

Tax Status of Promoters

4. Management and Organizations. The company is a Board company. Present Board of JDL, comprises following Directors:

(i) Mr. R. Khanna – Chairman
(ii) Mr. K.D. Sen – Managing Director
(iii) Mr. Verma – Executive Director
(iv) Mr. Varun Vashishth – Director

The day-to-day operations of JDL are looked after by Mr. R. Khanna and assisted by experienced professionals. Mr. Verma looks after the purchase and after completion of the project, he shall be looking after production also. Mr. Varun Vashishth is in charge of marketing activities and human resource development of the company. JDL appointed Mr. Govind Handa, B. Pharma, (Vice President), Mr. Sunil Sharma B.A. (Export Manager), Mr. Mohan Arora, B.Sc. (Marketing Manager), Mr. Rajat Goyal (Manager HRD), and has also engaged Mr. Prem Agarwal, B.Com., F.C.A. as Financial Advisor. JDL, however, proposes to strengthen its administration, finance, and production areas by recruiting experienced professionals in the due course of time.

5. Capital Structure. JDL is a public limited company which came into existence in September, 1999. JDL is presently closely, held, non-listed company and the entire paid up share capital is held by promoters and share application money has been brought by promoters, their friends and associates.

C. The Project:

(i) Formal Proposal:

• To set up facilities for the manufacture of pharmaceutical formulations viz. tablets, capsules, Injectables (Liquid and powder).
• To set up a modern R&D centre to develop new processes and products in the field of Chemicals/Formulations.
• Augmentation of working capital for the proposed project.

The installed capacities after completion of the proposed project will be as under :

The above formulations will be mainly in the category of analgesic, antibiotics, anti-tuberculosis, anti-inflammatory, cardiovascular drug, anti psychotropic drugs, tranquilizers, antacids, iron, proteins, and Vitamins, etc. A detailed list of categories of formulations is given in Annexure I.

(ii) Location. The project is being set up in a sprawling 20,000 sq. meters area in one of the model industrial belts of Haryana, i.e., Bawal Industrial Area, Haryana, which is considered self-sufficient so far as the industrial infrastructure is connected. The location is well connected with Rail & Road.

(iii) Land & Building. JDL has already acquired land measuring 10,000 sq. meters at Plot No. XY-4000(1) & (II), Phase VI, Bawal Industrial Area, Haryana, which is registered in the name of the company. The total cost of the land is 50.00 lakhs excluding site development of 15,00 lacks. Approximately 60,000 sq. ft. constructed area is estimated for the plant with first-class brickwork and RCC construction. The total estimated cost of the building works out to 243.50 lakhs as per the estimate of the Architect M/s. Login Associates Pvt. Ltd. The construction of the building will commence from 07/10/94 and will be completed by 30th May 1995.

(iv) Manufacturing Process. The required raw material/mixed in stainless steel vessels under controlled conditions of temperature, pH, pressure and mixing time, etc. under hygienic conditions. The preparations are then filled in sterilized vials, ampoules, and bottles. JDL proposes to adopt a comprehensive in-built system of quality control for ensuring the manufacture of end-products in conformity with the IP/BP/USP specifications. Necessary, approval from the drug authority needed would be obtained by JDL.

(v) Technical Arrangements. For the implementations of the proposed scheme, JDL has engaged the services of M/s. Ganga Tech Ltd. Licensing Delhi, to make available all information and technology to manufacture tablets, capsules and injectables (Liquid and Powder). Ganga Tech Ltd. is a proprietary concern with Sh. Virat Kohli as the Chief consultant, S of Virat Kohli is a pharmacist by profession. He has a wide-ranging experience in Project Management and Control, Designing Formulation Plant. Layouts, Technology Sourcing, and Acquisitions, Arrangements. He has arranged various collaborations with renowned unions. He has undergone a specialized course in Management of companies of America, Europe, Japan, and the Government Technology transfer, Patents, and Information Systems and has been instrumental in starting International Trade for Indian Companies having procured orders worth over 30 million in the very first year from Europe. Ganga Tech Ltd. has provided the technical know-how and other viz, Himalaya Drugs and related services to different companies call-Roorkee, Med Lab pharmaceuticals-Mandi, Bajaj Ltd.-Shimla, Galaxy Pharmaceuticals – Rewari, etc. Soviet

The company has also engaged Mr. Govind Handa, B. Pharma (Gold Medalist from Delhi University) as Vice President (Technical) having a wide experience of 11 years to manufacturing pharmaceutical formulations. Mr. Handa has earlier worked with M/s. K Pharma Ltd. as a manufacturing chemist and with M/s Future Medicine Pharmaceuticals Ltd. as Managers (Productions) and then as General Manager (Commercial & Technical). There he was looking after the production of tablets, capsules, dry syrups, and injectables and related works with it and has also wide experience in handling plant independently and has wide experience in dealings with Excise, P.F., E.S.J., Labour Laws, Manpower handling, etc.

(vi) Procurement of Plant and Machinery. Based on discussion and consultation with Ganga Tech Ltd., JDL has finalized items of plant and machinery (details given in Annexure-5). While selecting the machinery, JDL and Ganga Tech Ltd. have kept in view aspects like cost-effectiveness, track record and reputation of the machinery suppliers, delivery schedule, balancing and synchronization of different machinery from reputed manufacturers/suppliers like M/s. Zintach, M/s. Lenix and M/s. Shah & Shah.
The entire plant and machinery and equipment would be procured indigenously. The major equipment required for the project are vial washing machine (jet type), automatic vial filling machine, vial inspection machine, ampoule washing machine, 4 head ampoule filling and sealing machine, Ampoule inspection machine, powder filling machine, 4 head aluminum cap sealing machine, vial labeling machine, Autoclave, S.S. Pressure Vessel, Air Pressure Regulator, Dehumidifier. PP Cap sealing machine, Powder injection filling machine, Automatic Capsule filling machine, Rapid mixer granulator, Air pressure regulator. Compression machines, FB dryer, and various laboratory equipment.

(e) Raw materials. All the major raw materials proposed to be used by JDL for the manufacture of pharmaceutical formulations are available indigenously. These includes Calatorie, Ampicillin and Cloxacillin, Amikacin sulphate. Ciprofloxacin, Famotidine, Nalidixic Acid Metronidazole, Prednisolone, Amoxycillin, Dielofenac, Chloramphenicol, Ampicillin Tribydrate, Tetracycline, Doxycycline. The packing material like Aluminium foil blister, printed cartons, corrugated boxes, glass bottles, tumblers, plastic jars, PP. caps are also available locally. The promoters have established contacts and are already in the line, IDL does not envisage any difficulty in meeting its requirement of drugs and packing materials from indigenous/local/ overseas sources. At optimum capacity utilization of 90% the cost of raw materials and packing material is estimated ₹1727.65 lakh

(viii) Utilities: Manpower requirement. At present the company has 5 employees. The company purposes to induct employees as per recruitment plan as given below:

Company will have around 165 employees in its first year, 216 employ ees in second year and 305 employees in third year on its payroll. JDL proposes to recruit chemists from the Industry and most of the semiskilled and unskilled workers locally and impart them on plant training. The unit is being located at Industrial Area, Bawal, therefore, the company does not foresee any problem in getting skilled and semi skilled persons and the required workforce which is locally available.

• Power & Electricity. Total power requirement is estimated at 280 KVA for which the company will apply to Haryana State Electricity Board immediately after start of construction. However, the company also proposes to install a 200 KVA D.G. Set as standby arrangement for uninterrupted Power Supply.

• Effluent disposal. The main effluents from the proposed project will be processed waste water which would not contain any hazardous contaminants. However, JDL would be required to obtain approval from the competent authority of Haryana Pollution Control Board for the proposed project.

• Water. For the proposed programme the requirement of processed water is estimated at 8 KLPD proposed to be met from Company’s ow tube well at the factory site, However, JDL proposes to install on number DM water plant of 10 KLPD capacity to meet its requiremen of demineralized water, to be used for making liquid injectables, distillation unit of capacity of 10 KLPD is also proposed to be installed! by JDL

• Steam/Fuel. The requirement of pyrogen free steam for the proposed project estimated at 1,465 kg per day is proposed to be met the from electrically heated boilers (attached to autoclaves) specially fitted with pyrogen filters.

• Refrigeration. The requirement of refrigeration/air conditioning for the proposed project estimated at 120 TR is proposed to be met by installing a 120 tonnes capacity central air-conditioning plant and split air conditioning plant.

• Compressed air. The requirement of compressed air estimated at 3000 litres per minute is proposed to be met by installing an air compressor of suitable capacity. For maintaining inert atmosphere in the Ampoules/Vials Section, JDL from the local dealers.

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