HOTEL DESIGN

TOPIC: FORMULATION OF PROJECT REPORT / FEASIBILITY REPORT

Unit-1

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 FORMULATION OF PROJECT REPORT / FEASIBILITY
• Formulation of a project generally culminates in the preparation of a project report.

• A project report is a document setting out the nature of the activity proposed and the
justification for selection and commitment of resources (men, materials, money) to the
activity

A project report, generally, contains the following :

1) Promoters and their track record with specific emphasis on their experience and the
activity selected for the project.

2) Particulars of the project with special reference to:

a) Technology & Technical Arrangements

b) Location , Land and Buildings.
c) Plant & Machinery.
d) Raw Materials
e) Utilities like power, water supply, transportation etc.
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 FORMULATION OF PROJECT REPORT / FEASIBILITY

A project report, generally, contains the following :

2. Particulars of the project with special reference to:

f) Labour
g) Schedule of implementation
h) Cost of the project
i) Means of Financing
j) Marketing & Selling Arrangement
k) Profitability & Cash Flow.
l) Economic Considerations
m) Government Consent
n) Declaration of the promoter

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 FORMULATION OF PROJECT REPORT / FEASIBILITY
A well prepared project report ensures that every aspects of the project is well considered.

It allows the promoter to embark on the project with total confident.

In addition , financial institutions appraise the financial viability of a project , primarily on the
basis of project report.

For preparing a project report any of the following options can be considered.

• Where the organization promoting the project is well versed with all aspects of the project,
it may get the report prepared by its own employees. However, financial institutions insist
on the services of specialists like chartered accountants for the preparation of certain
aspects of the project report.

• The organization may hire the services of professional consultants or consultancy firms to
prepare the project report.

• The organizations may primarily depend on project reports prepared by financial /

professional institutions. They may make suitable modifications / alterations in the reports
depending on local conditions and circumstances.
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