 Hello friends, in the last session we have discussed about preparation of project report part one which explained you what is the importance of project report and why the project report will be prepared. In today's session we will be moving ahead with the next part of this and at the end of the session students will be able to list down the contents of the project report and further they will also be able to write the details of the parameters of the preliminary project report. As you already know what is a project report is and why we need to have a great care with the project report preparation. Generally we are classifying the projects according to two types. The first is called as preliminary project report generally abbreviated as PPR and the second one is detail project report DPR. A PPR is a very simple brief data sheet that gives an insight into the following details. The first is input and output of the project, the activity which are carrying out, what are the inputs required for it. Input may be material or input may be some service or some resource and output may be in the form of product service, combination of product and service or may be delivering the customer needs. Then second is technology required, what are the technology inputs that are required for the particular project. Machines and other resources, other resources includes infrastructure, land building and other things, hardware, softwares. Approximate manpower required, manpower may be into variety of categories, manpower into workers category, supervisory category, managerial category. Again in workers category it can be into skilled, semi-skilled or unskilled workers. Into supervisory we need to have technical supervisor, we need to have HR, we need to have finance and so on. The further data required is generally what is the rough estimate of the finance, what is the total financial projection, finance requirement for working capital and finance required for the term loans. At the end of this, the ultimate goal of any entrepreneur is to earn profit on a increasing scale. So we need to know what are the expected profits and what is the profitability of the particular project. Profit is generally the sales price minus the cost, whereas profitability is the percentage of the total capital employed. So profits and profitability both are different. For a good project and for a sustainable project we need profit and profitability both on an increasing scale. In short, PPR is a brief outline of the project that tells the visibility or viability of the project. What is visibility or viability? Whether it is possible to run the project on a financially sustained ground. Most of us are technocrats and we feel that any project can be technically converted into a profit making enterprise. Sometimes it may or may not be true. We have cases where technocrats have not become successful entrepreneurs whereas the other way successful entrepreneurs are generally not the technocrats. So technology or technical inputs is only one part of the entire four parts what we are talking about is we need to know HR, we need to know finance, we need to know the market and marketing aspect of it and finally we need to know what makes a successful business. Technology is a small part of the entire business. So we need to have the viability of the project in terms of financial angle in addition to the technological angle. We have seen cases where a entrepreneur is really, really appreciated for his technical inputs. He can machine into microns, he can have the consistency of the production, quality and so on. But when it comes to running an enterprise he has failed in many cases. So before we end to details of it we need to know whether the project is viable in terms of financial, whether it can be long term sustained or not. And then depending upon that whether it will decide whether it is worth pursuing, continuing or we have to search for some alternatives. The important content of a good project report are as follows. The first is general information, information on the product profile and product details. What is the product you are trying to manufacture, what are these technical specifications, how it compares with the competitors, whether it has about competition or it is a monopoly, new technology entering into the market and so on. Promoters, promoters are few people. The owners of the organization are called as promoters. Promoters can be a single entrepreneur, it can be two, it can be multiples, it can be a proprietary, it can be partnership, it can be LLP, limited lab partnership, it can be private limited, it can be public limited, it can be cooperative and so on. We have got lot many of variety of promoters. We need to have the promoters qualification, their experience in the particular field. The experience especially in the project is much more important, much more significant as compared to general experience. A person who is having experience in the machine shop may not be able to successful in a service related organization and vice versa. And what are the special achievements in terms of his content, his particular project running activities, whether he has any experience or exposure of project related handling matters or whether he has set up such scales, such units in the earlier experience as a employee also. We have successful entrepreneurs who have been working as a successful project engineers in small or big projects in a multinational company, then resigned their job and started their own enterprise, their success rate is very good number, generally reaches to 90 to 95 percent. The next important content is the location. You need to know exact proposed location of the project, either the proposed location, proposed plot you are having of your ownership, you are taking it on a lease basis, it is a free hold plot and when you talk about location, it is a big matter of detail discussion of locational economics. There are number of factors of positive and negative of location, how to select a location and their location depends upon the product and the service which are trying to render. Land and building, land area, what is the area available, what is the built up area requirement, what is the type of construction, temporary or permanent and so on, what is the cost of the construction, detailed plan, cost estimate along with planned layout. In addition, we need to have the legal compliances related to the land and building, we need to have so many formalities and so many approvals from various government agencies so as to have the complete building. And then most important is you should have a license of a building that is called as permission to use or permit use, then only probably you are allowed to use that land and building for the particular purpose for which the project is meant for. Details of plant and machinery required, what are the various types of machines you require, what is the capacity of the machine, what is the investment of the machine, what can be the accuracy and capability of the machine, who are the renowned suppliers in that, what is the cost impact of the machinery, what are the various alternatives available, generally a new entrepreneur will start with a very high cost and very innovative technological solution and when it starts searching for the cost, then once realizes that the cost is highly prohibitive, in that case we have to go for the various alternatives, whether we can use a simple second-hand machinery or with a convert a simple conventional machine to a SPM requirements and in addition to the plant and machinery we need to have other equipments and accessories, nowadays equipments, accessories like tooling, geeks, fixtures, measurements, CMM, all these are sometimes costing equivalent to the cost of the machinery also, one need to consider these costs in the final estimation of plant and machinery. Production processes, what is the process which converts input into output, that we generally called as conversion process, may be for product or may be for service, that process knowledge entrepreneurs should have in detail thorough, through technical know how, what are the technological alternatives available for that, what is the production program, how much it can produce, what is the cost, what is the time requirement, what is the technical capability of the band power, what are the alternatives or what are the contingency plans in case of the one process does not work and what is the capacity matching to your production process and so on, so details these are required. Now we have to think of what is a setting of a small shop in it, a small machine shop to carry out machining of the shaft, you have to write down the machining processes and list down the plant and machinery required, you have to think and then you have to write it off. Other contents are utilities as you know all the water utilities and compressed air, road, light, power and transport and communication modes which are available, what is the raw material availability, what is the cost of raw material, what is the type of procurement, band power required, the products and market and marketing most important part of the contents of the project report, funds required, the turn blown requirements and the working capital requirement you should be able to estimate and finally, what is the cost of production and profitability of the entire project on one year basis, on the five year basis, what is the break-in analysis of it, what is the schedule of implementation, break-in analysis will give you at particular volume when it will come to the no cost, no profit and no loss, accountment and so on. So, in the next part we will be discussing about how to analyze all these contents and what are the analysis tools which are required for it. So, thank you very much.