September 19, 2019

How to prepare a  project Report

For the purpose of seeking financial assistance from bank / financial institutions and other lenders one has to prepare his project report. Project Report is the document on the basis of which lenders understand about your business its feasibility, marketability, profitability, competence of promoters, means of finance etc. all are described in details in project report. The basic contents of the project reports are as below:

  1. Back ground of products, promoters and his experience
  2. Nature of Product
  3. Location of project
  4. Production capacity and its utilization in respect of product to be produce and process involved.
  5. Availability of utilities, raw material man power etc.
  6. Cost of project with working capital requirement.
  7. Means of finance.
  8. Technical arrangements
  9. Market prospects and marketing arrangements
  10. Competitor of the product and future of the product.
  11. Environmental aspects.
  12. Profitability projections and Cash flows for the entire repayment period of financial assistance
  13. Important ratios.


We tried to give you detail idea about the project report with hypothetical data.

We have chosen the product that is ice cream parlors.


  1. Introduction

Details of food industry in India:


India is the second biggest food producer in the world and it has the potential to become the largest producer of food in the whole world. Food Industry in India includes milk and milk products, plantation, alcoholic beverages, vegetables and fruits, fisheries, poultry and meat, grain processing, chocolates, and confectionery.

Reasons for the growth of the food industry


  • Increased urbanization in the country has given a boost to the food industry in India.
  • Majority of the women in the country are working as a result of which families have extra income which

they are spending in buying food.

  • The standard of living in the country has improved as a result of which there has been an increased

demand for food.

  • Supermarkets and malls have opened all over the country and this has helped in making shopping for

food a pleasurable experience.

  • The consumers can select, inspect and pick up food items that they like in an ambience that is

comfortable. This too has helped to boost the sale of food products in the country


Major companies in the food industry

  • Nestle India Ltd.
  • Kelloggs India
  • Cadbury’s India Ltd.
  • MTR Foods Ltd.
  • Hindustan Lever Ltd.
  • Godrej Foods
  • ITC-Agro
  • Coca-Cola
  • Britannia


List of Top Sweets and Confectionery Manufacturers in India


Details about the Promoters, their educational qualifications, work experience.

This is Proprietorship (Mr. / Mrs              Proprietor)  Company having sound knowledge about taste to create new flavors and serve customers with variety of food range.

Promoters have good experience about food industry and retailing along with sufficient qualification.

Technical support will provide by Mr./ Mrs/ Ms                        who has having vast experience in the concerned field and he has given their consent  to work with the company. Who has having  14 year experience in consumer goods laboratories.

  1. Nature of Product to be produce/ sold
  2. Live Ice Cream by fry Pan.
  3. Live Ice cream by Nitrogen.
  4. Live Garnishing of Ice Cream by Cold Stone.
  5. Sundaes
  6. Mocktails
  7. Chocolates
  8. Kulfi
  9. Softy
  10. Pav Bhagi
  11. Veg Gravi with Rumali roti
  12. Biryanis
  13. Other Snacks


  1. Location of project


The proposed project is to be located at        place give reason why this place has been chosen and whats kind of geographical location, condition and environments leads to situation of the project at this location.


  1. Production capacity and its utilization in respect of product to be produce and process involved.



List of Required Equipment’s
1. Ice Cream Freezer 2. Frozen Dessert Machine
3. Ice Pan 4. Cold Stone Machine
5. Nitrogen Cylinder 6. Cream Mixing Machine
7. Shake Grinder 8. Kulfi Machine
9. Softy Machine 10. Sundae Ice Cream Dish
11. Utensils and other kitchen equipment. 12. SS Vessels
13. Stall and other decoration materials 14. Packing and delivery materials
15. Oven for Pav 16. Commercial Oven
17. Pan for Bhagi 18. Display counter for Pav Bhagi, Romali Roti & Birayni.
19. Exhaust System and Hood, commercial with fire suppression system 20. Fryer, Commercial Deep
21. Freezer, Commercial 22. SS Vessels,
23. Small utensils, Kitchen utensils, plates, glasses 24. Gas Burner
25 Table & chair for sitting of 20 persons 26. Two ACs
27. Dish washers 28. Heat Seal packing Machine


Details of Raw Materials required
1. Ice Cream 2. Chocolate Slabs
3. Fruit Crushes 4. Syrups
5. Lounges 6. Sugars
7. Fresh Milk 8. Milk Powder
9. Cream 10. Real Fruits
11. Soda 12. Maida
13. Fresh Vegetables 14. Multi Grain Aatta
15. Birayni Rice 16. Spices
17. Salts 18. Butter
19. Paneer 20. Cheese


Storage System ~

Ice cream is a perishable product and should be treated carefully. When frozen desserts are exposed to temperatures above 10°F, they become subject to adverse changes in body, texture and flavor characteristics. Although individual manufacturers’ recipes yield ice cream of varying consistency and flavor, all ice cream will be negatively affected if improperly handled or stored. Because of the fluctuating temperatures in most home freezers, recommends that people follow these tips, and enjoy ice cream within a month of purchase.


Here are some tips on how to keep ice cream in its most delectable form.


  1. Make the ice cream aisle your last stop during your trip to the supermarket.
  2. Check the temperature of grocer’s freezer case. The optimum temperature is 0°F (-18°C) or colder. The temperature in the supermarket’s freezer case should not be above 10°F (-12°C). If kept at a proper temperature, ice cream will be thoroughly frozen and will feel hard to the touch. If the product is soft, you may wish to bring it to the attention of the store manager.
  3. In an open top freezer case, always select ice cream and frozen treats stored below the freezer line.
  4. Put ice cream products in the separate section of your grocery cart, or place on top of other groceries.
  5. Insulate ice cream products for the ride home. When your groceries are packed, request a freezer bag or additional brown paper bag to insulate your ice cream.
  6. Make the grocery store or ice cream parlor your last errand before going home. This will insure that your ice cream does not sit in a warm car while you are making other stops



Production process and whole process how the product produced and reached in the hand of consumers.

Give about the full production process and how the product reached in the hand of consumers.

  • Availability of utilities, raw material man power etc.


All utilities as explained above are easily available in the local market at very competitive price and good in quality. Raw material are easily available in the market and supply of the same can be made as and when required there is no scarcity of the raw material to be consumed.


India is the second largest populated country in the world and its population make the project dual benefited first it having a good customer base secondly it gives highly skilled and unskilled man power related to the field and in all make the project viable from the point of view of availability of raw materials and man power.


  1. Cost of project with working capital requirement.

Cost of the project involve two type of expenditure:

  1. Capital expenditure
  2. Acquisition of Land and building
  3. Purchase of Plant & Machinery.
  4. Development of project site etc.
  5. Revenue expenditure: those expenditure which needs to incur in order to carry out day to day activities like:
  6. Cost of Raw materials and consumables.
  7. Cost of Man power.
  8. Rent
  9. Freight
  10. Repair & Maintenance
  11. Finance cost
  12. Establishment cost etc.
For Example











ABC Pvt. Ltd.

(Rs. lakh)
  Already incurred To be incurred Total Cost
    Firm Non-firm  
Land 0.00 0.00 0.00 0.00
Site Development 0.00 0.00 0.00 0.00
Buildings 0.00 0.00 0.00 0.00
Plant and Machinery        
– Imported 0.00 0.00 0.00 0.00
– Indigenous 0.00 0.00 0.00 0.00
Misc. Fixed Assets 0.00 0.00 0.00 0.00
Preliminary Expenses 0.00 0.00 0.00 0.00
Pre-operative Expenses 0.00 0.00 0.00 0.00
Provision for Contingencies 0.00 0.00 0.00 0.00
Margin Money for Working Capital 0.00 0.00 0.00 0.00
TOTAL COST 0.00 0.00 0.00 0.00
TOTAL COST (Rounded off) 0.00
  Already raised To be raised   Total
Promoters’ Equity 0.00 0.00   0.00
Share Premium 0.00 0.00   0.00
Preference Share Capital 0.00 0.00   0.00
Equity Contribution by Bank 0.00 0.00   0.00
Interest free Unsecured Loans 0.00 0.00   0.00
Subsidy 0.00 0.00   0.00
Quasi-Equity Others (Pl Specify) 0.00 0.00   0.00
Total Equity/ Quasi-Equity 0.00 0.00   0.00
Term Loan from Bank 0.00 0.00   0.00
Interest Bearing Unsecured Loans 0.00 0.00   0.00
Total Debt 0.00 0.00   0.00
TOTAL FINANCE 0.00 0.00   0.00
Debt-Equity Ratio (DER) #DIV/0!
Debt Equity Ratio (Considering Interest Free Unsecured Loans as Quasi Equity) #DIV/0!
Promoters’ Contribution (%) #DIV/0!
Promoters’ Contribution by Equity (%) #DIV/0!
Ratio of Capital to Interest Free Unsecured Loans NA


Sales Turnover :

Based on product-mix and ex-shop price considered, the annual sales realization is estimated at Rs 4.87 cr.

Estimated Annual Sale Realization:
SL# Particular Capacity Average Selling Rate Total Sale Per Day Total Sale per  Month Total Sale per  year
1 Ice Cream Roll 96 120 11520 345600 4147200
2 Softy 200 55 11000 330000 3960000
3 Nitrogen Ice Cream 100 120 12000 360000 4320000
4 Shakes 200 90 18000 540000 6480000
5 Kulfi 400 30 12000 360000 4320000
6 Mocktails 100 80 8000 240000 2880000
7 Sundaes 100 140 14000 420000 5040000
8 Chocolates 1000 5 5000 150000 1800000
9 Pav Bhagi 100 80 8000 240000 2880000
10 Gravi + Rumali Roti 100 90 9000 270000 3240000
11 Birayni 100 150 15000 450000 5400000
12 Snacks 200 60 12000 360000 4320000
  Total 2696   135520 4065600 48787200