 Hello friends, today we are going to discuss about preparation of a project report for setting up of a small scale industry. I would like to have a revision of the definition of industry. Nowadays, the definition of industry includes service sector. So, industry can be a manufacturing, a small scale, a medium scale, it can be a trading firm, it can be a software, it can be a service provider and so on. So, the latest definition in the ISO includes services as such. The preparation of project report, the learning outcome of the today's session will be students will be able to list down the objectives of preparing a project report. What is a project? Project is an individual or collaborative enterprise that is carefully planned to achieve the particular aim. It can be anything, it can be a small Xerox machine, it can be a mobile operation, it can be a lathe machine manufacturing unit, it can be an internet trading firm, it can be a service providing to the students, it can be a hotel, it can be a bank, it can be a hospital and so on. So, we want to set up a unit that we need to generally start with the project and whenever we approach to the bank or any financial institution, we would like to seek the finances from various financial agencies. Then the first and the foremost question which comes to in our mind, which comes to the bankers mind is that where is your project report? So, we will be at the end of these all these sessions we will be handing the how to prepare a project report and then what is a business or industry means, it is a manufacturing unit, trading firm or a service provision unit. Now take a pause for some minutes and now think what are the ideas for sitting up of SSI? You have to think that after passing out from this institute, we have to start your own business, we have to be entrepreneur. What and where you will start, what is the idea, it can be generation of ideas, number of ideas can come to your mind, your job is to list down the various ideas. Don't think of the feasibility of the idea, don't think of the financial implications of the idea, don't think anything right this at this moment. Once you note down the ideas, then we'll screen up, we'll find out what is the best feasible and what is the best possible idea. Okay, now once you have finalized the project, once you have finalized the idea, once you have finalized the project, the next question is how, what is a project report? Project report is a document, it is a business plan, an outcome of an exercise meant to check the viability of an enterprise and analyze, firm up its essential parameters. In other words, it is a business plan, which is a written document of what an entrepreneur proposes to take up and his course of action to establish the enterprise. The project serves like a roadmap to reach the destination determined by the entrepreneur. Thus a project report can best be defined as a well-evolved course of action devised to achieve the specified objectives within a specified period of time. The preparation of project report is of great significance for the entrepreneur in his business. There is a variety of purposes which a project report or a business plan will fulfill, hence its need in modern business. With that, you have started and you have finalized a project. Now you have to prepare a project report. Why do all are engaged in a business or a service? The ultimate aim of any enterprise can be divided into two categories. One is for profit-making organizations and for non-profit-making organizations. In our discussion, our focus will be limited to only for profit-making organizations. So whenever we are talking about project and project report, naturally the ultimate aim of any project, any business, any enterprise will be to earn profit on an increasing basis. Earn profit for today and earn profit for tomorrow. Once having that idea clear, now this report will tell us whether the particular profits can be achieved, whether the particular project can be visible or not, and what are the pros and cons, what are the various aspects we have to think of while preparing a project report. So in summary, the objective of the project report can be, first it helps an entrepreneur judge the profitability of a given enterprise. If it reveals a proposal to be unviable, the entrepreneur will avoid a grave error or investing in an unsound venture. Naturally it is obvious that any business is meant for profit. So if the project report tells us that it is not viable, it is not profitable or the ROI is too long, then probably we have to avoid that and what are the possible errors we have to avoid those mistakes also. It is the basic document for the banks to sanction the loan, term loan and working capital. There are two types of loans we are generally asking for. One is called as term loan, which is used for asset creation, maybe land, building, machinery, other equipments and other accessories. And working capital, which is needed for day-to-day management, purchasing of raw material, processing and then finally selling to the customers. Whatever the capital we are blocking into the conversion from raw material to the final end results, that entire capital is called as working capital. So this is the first and foremost document which the banks are asking for. After the next objective will be it helps to decide the technical arrangement or know how, choosing a location, selecting a plant, machinery, determining manpower and utility needs, etc required for the project implementation. When we talk about project, it has got four major aspects. One is production, marketing, finance and HR. We have to judge whether we are capable of dealing all these four areas, whether we have enough of technology, whether we have got enough of marketing arrangement, I will be able to manage the manpower required for it, skilled manpower, the managerial manpower, working force and so on. And then whether I will be able to manage the finance. So these are the four pillars of the business. When you talk about project report, we have to establish the details and viability of each of these pillar. Further, the project report also educates the entrepreneur regarding the degree of risk underlying the enterprise proposal. Any business involves risk in itself. Now, enterpising first particular characteristic of any enterprise is that the quality of the enterprise is the risk taking ability. Unless you are involved into risk taking ability, one cannot have its own business. Once we decide into going to the business, the risk is the other side of that particular coin. Through project report, we are trying to underline what is the risk involved and what is the risk mitigation, risk management we are trying to see. Of course, there is a separate standard, international standard called ISO 31000, which is the risk management standard. At some other time, if you get time, my suggestion is to please go through the risk management standard ISO 31000 as and when time permits. It gives how to take the risk, what are the possible risk mitigations and so on. Further, it brings the sharp focus on key performance determinants in the chosen line of business and makes the entrepreneur realize need to pay special attention to such determinants. There are some particular constraints, some focus areas, where probably project report will identify those focus areas and will make it clear to the entrepreneur where to focus and where not to give so much of attention while evaluating the project report. The most important object of the project report is it generates knowledge based for the entrepreneur. Finally, knowledge is the power you see. Knowledge makes everything possible. Therefore, diverse facet of an industry, market, raw material, etc. Unless you know the various knowledge areas, it is not possible to generate, to make a project report. In the summary, what we can see today is that we have seen what is the definition, what is the project report, what is the importance and objective of the project report. And for further details, we'll study into the second part, how to prepare a project report in part two. Thank you.