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Step 2 A:- Project Report

What is Project Report?

project-report

Project Report is an analysis document for banks and other lending institutions to understand a business current and future profitability and financial position
It compares year to year projected data such as Profit & Loss A/c and balance sheet. From Project report, it is analyzed the repayment capacity of business in future.
Hence It is one of the most important work out for all lending institutions before the loan is granted.

When it Is Required?

In the Following situation, Project Report is required
Term Loan for Business
Applying for Overdraft of Cash Credit facility
Increasing the Credit limit
Loan against property
Any Other loan on the business

What an Ideal Project Report should contain?

Projected Balance sheet & Profit & Loss A/c
Cash Flow & Fund Flow Statement
Important Ratio analysis
Break-even Point Analysis
Debt repayment capacity Analysis

What is the reason for project report rejection?

Poor Presentation
Inadequate information
Negative ratios or Negative indication

                   

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