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Branch : Mechanical Engineering�Semester : 3rd

Mayurbhanj School Of Engineering, Baripada

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Branch : Mechanical Engineering

Subject : EM&ST

Chapter : 03

Topic : MANAGEMENT

Faculty : Er. SATYA SWARUP DAS

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PREPARATION OF PROJECT REPORT

This project report is necessary to get registration, licence, permission and loons from financial institutions for his project. Project report is the mirror through which one can see the entire picture of an organisation in advance. Project report can be of two types :-

A. Preliminary project report (P.P.R.)

B. Detailed project report (D.P.R.)

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PRELIMINARY PROJECT REPORT (P.P.R)

A Preliminary project report is a brief summary of a project describing the expended input and outputs like finance, manpower, materials, machinery, technology, expenses, production, profits, sales, etc.

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Preliminary Project Report:-

A. Information about the entrepreneur.

B. Information about the proposed product/ project.

C. General information about the product:-

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2. Market potential:-

Under this section the entrepreneur has to mention the area over which his product may be sold . He has to mention the present demand of the product in the area division- wise with quantity any value in a tabular manner

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3. Basis of presumption:-

Under this section, the entrepreneur has to mention the following details:-

    • The average working hour per day, per month and per year have to be mentioned.
    • When the plant will operate in its full capacity has to be mentioned.
    • What will be the pay back period of the team loan may be mentioned.
    • How much percentage of margin money shall be provided by the promoter may be stated. Usually the entrepreneur invests 30% to 35% of the entire fund from his own pocked and the rest may be obtained on loans from banks and the financial institutions.
    • The rate of interest for the long term loan as well as working capital loans may be stated.
    • The cast of land and building has to be mentioned as per the prevailing rates. The cost of land differs depending on the area but the cost of depending on the area but the cost of building is usually fixed on the rented shed, it may also be mentioned here.

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4. Implementation Schedule:-

Under this the entrepreneur has to mention the time to be taken for the completion of the project. The detail calculation of time to be taken for each activity may be mentioned.

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For Examples:-

  1. Preparation of project report
  2. Selection of loans _______ 3 month.
  3. Construction of building, procurement of machinery, equipment of installation _______6 month.
  4. Arrangement of utilities, like electricity, water, etc _______3 month.