TECHNICAL

PROJECT
REPORT WRITING
Presented by:
Arya Wirabhuana
 Associated Lesson Concept

Engineers spend a great deal of time

writing technical reports to explain
project information to various
audiences.
 The Importance of Writing
Engineers perform Upper Management
technical writing to
communicate Decision
pertinent information Control
that is needed by
upper management to Detailed
make intelligent Knowledge
decisions that will
effect a company’s Project Engineer
future.
 The Importance of Writing
Many engineers spend between 1/3 and 1/2
of their work time engaged in technical
writing. Examples include:
• proposals • technical reports
• regulations • progress reports
• manuals • emails
• procedures • memos
Academic vs. Technical Writing

Academic Technical
Purpose: Demonstrate what you Getting something
know about a topic done
Less than teacher who
Knowledge of
is evaluating them More than the reader
Topic:

Audience: Teacher
Several People
Criteria for Depth, logic, clarity,
Evaluation: unity and grammar Clear and simple
organization of ideas
Types of Technical
Reports/Communication
Examples are:
• Annual Report
• Books
• Computer Hardware Guides
• Magazines
• Newsletters
• Organizational Manuals
• Scholarly Articles/Journals
• Software Guides
• Technical Reports
 Technical Writing
Technical writing is a type of expository
writing this is used to convey information for
technical or business purposes.
Technical writing is NOT used to:
• entertain
• create suspense
• invite differing interpretations
Characteristics of Effective
Technical Writing

The four C’s:

• Clarity -- it is easily understood by your intended audience
• Comprehensiveness -- all of the necessary information is
present
• Conciseness -- it is clear without excess verbiage
• Correctness -- it is grammatical and follows conventions
 Technical Reports
Engineers write technical reports (also
called engineering reports) to communicate
technical information and conclusions about
projects to customers, managers, legal
authority figures, and other engineers.
A technical report follows a specific layout
and format as specified by the American
National Standards Institute (ANSI).
Theory of Design

Good design is:

1. Visually simple and uncluttered.

2. Highlights structure, hierarchy, and order.
3. Helps readers find information they need.
Writing
• Write positive language.
Don’t use: Access to student information is not authorized for
any parties except Enrollment Services. Employees
who have access to student information are not
allowed to share that information with non- affiliated
third parties if you have not authorized it.
Do use: Access to student information is authorized only for
Enrollment Services purposes. Employees who have
access to student information are required to protect
and keep it confidential.

• Don’t write in upper case for more than A WORD OR

TWO.
Writing (cont.)
• Use lists whenever possible.

• Use the title to define the task.

• Use headings and subheadings.

• Label segments in away that reflects how readers are

likely to think about the operation or procedure.

• Don’t use: Components

• Do use: How to Check the Components

Writing (cont.)
• Provide only one way to do something within a step.

• Be precise with your instructions.

• Use warnings.

• Write a conclusion.
Example: Congratulations! You’ve just created your first
document!

• Don’t annoy the reader.

Writing

• Chunk your information.

• Keep your paragraphs short.

• Less is better.

• Control the text width by using columns.

The Written Report: Why?

• You waste your time unless you can communicate

what you have been doing with it.

• The medium for most technical communication is the

written report, so you had better be good at it!
Some characteristics of reports
1. Everybody hates to write them,
2. Everybody hates to read them,
3. Almost nobody does read them,
4. They take a HUGE amount of time to write,
5. They are absolutely CRUCIAL to YOUR
success in engineering!
Further characteristics of reports
They are also almost always:

6. Too long,
7. Badly organized,
8. Incomplete.
Where to find materials to write the
report?
Examples are:
• Documents related to the project / work currently being done
• Google, Bing, Yahoo
• Google hacks/scripts (filetype, intitle, inurl, site)
• Journals (ex: Emeraldinsight.com, DOAJ.org, HighWire.stanford.edu)
• Scitopia.org
• Scirus.com
• Wolframalpha.com
• RSS readers – (Pageflakes.com)
• Newsgroup (Google Groups, Yahoogroups)
• Filesharing – Bittorent.com, Furk.net, Mininova.org
• Social site – Facebook, Myspace, Friendster
• Youtube.com, Metacafe.com etc.
• Reference, bibliography – Bibme.com
• Free Ebooks – Hongkiat.com - 20-best-websites-to-download-free-e-books.
OPPapers.com – Research Papers and Essays
Basic Technical Overview

• Professionalism and ethics in reporting

• Knowing your audience

• Outline writing

• Report writing (rigid structure)

Professionalism & ethics in
reporting
• Different individuals have different
personalities, and different modes for
communicating.

• If you apply a canned formula to your technical

communications, the result may be awkward.

• Within the general structure of formal technical

communication, there is room for your
personality to show through.
Knowing Your Audience

• At the very beginning… think about your likely audience.

• The word selection, level of motivation, and background

required for a report (or a presentation) depends greatly
on the background of the audience.
Outline Your Writing Purpose

• Why am I presenting this work? What do I

want the audience to get out of this paper or
this presentation?

• Hint: formulate one or two simple "take-home

messages" that you will try to impart to your
audience.
Write the Report, but how long?
• The length of your presentation - either written
or oral - is often dictated by others.

• With respect to oral presentations, you will

often find yourself up against a strict time limit:
Ÿ Be sure that you can get your take-home message across without
hurrying

• Hint: carefully rehearse your talk with a stop-

watch in hand…
Common Report Formats
There are a number of accepted formats for any
type of document that you write, but…

The commonly accepted standard for engineering reports

is IMRaD - Introduction - Methods - Results - and
Discussion.

Note: Your reports do not necessarily need to follow this

format strictly, but should use this as a guideline, and
contain all of the information discussed in the following
paragraphs.
Layout and Format

• Analogy:

• Think of the layout and

format of a newspaper.
• Stock market
information is found in
a specific location in a
newspaper (layout),
and is presented in a
table format.
Text
Front Cover

Title Page

Front Matter
Abstract

Table of Contents

List of Tables and Figures

Summary

Introduction

Methods, Assumptions,
and Procedures

Results and Discussion

Conclusion

References

Appendixes
Technical Report Layout

List of Symbols,
Abbreviations, and Acronyms

Back Cover
 Front Matter
The front matter is used to help potential
readers find the report.
Once found, the front matter will help the reader
to quickly decide whether or not the material
contained within the report pertains to what they
are investigating.
 Front Matter
1. Cover*
2. Label*
3. Title Page
4. Abstract
5. Table of Contents
6. Lists of Figures and Tables
 Front Matter: Cover*
A cover and label are used
if the report is over 10 pages
long.
The cover (front and back)
provides physical protection
for the printed report. Plastic
spiral bindings and thick,
card-stock paper are
recommended.
 Front Matter: Label*
A label is placed on the cover to identify:

• Report title and subtitle

(if a subtitle is
appropriate)
• Author’s name
• Publisher*
• Date of publication
 Front Matter: Title Page

The title page provides

descriptive information that
is used by organizations
that provide access to
information resources (i.e.,
library).
A title page duplicates the
information found on the
front cover (if one is used).
 Front Matter: Abstract

An abstract (informative style) is a short summary

that provides an overview of the purpose, scope,
and findings contained in the report.
Purpose - identifies the issue, need, or reason for
the investigation
Scope - reviews the main points, extent and
limits of the investigation
Findings - includes condensed conclusions and
 Front Matter: Abstract
• no more than 200 words*
• provides an “in a nut shell”
description without providing
underlying details
• contains no undefined
symbols, abbreviations, or
acronyms
• makes no reference by
number to any references or ii

illustrative material
 Front Matter: Table of Contents

The table of contents

lists the title and
beginning page
number of each major
section within the
report (excluding the
title page and the
table of contents).
iii
 Front Matter: List of Figures and
Tables*

A list of figures and

tables helps the
reader to locate
illustrations, drawings,
photographs, graphs,
charts, and tables of
information contained
in the report.
iv
 Front Matter: List of Figures and
Tables*

A figure is any drawing, photograph,

graph, or chart that is used to explain
and support the technical information
in the text.
The figure number and title will
appear below the image.
Refer to a figure or table within the
text, and place the image close to the
reference.
 Front Matter: List of Figures and
Tables*

A table is an arrangement
of detailed facts or
statistics that are
arranged in a row-and-
column format.
The table number and title
appear above the table.
 Text
The text is the part of a technical report in
which the author describes the methods,
assumptions, and procedures; presents
and discusses the results; draws
conclusions, and recommends actions
based on the results.
 Text

• Summary
• Introduction
• Methods, Assumptions, and Procedures
• Results and Discussion
• Conclusions
• Recommendations*
• References
 Text: Summary

• States the problem,

method of investigation,
conclusions, and
recommendations
• Contains no new info
that is not contained in
the report
• Does not contain 1

references
 Text: Introduction

The Introduction
prepares the reader to
read the main body of
the report.
This page focuses on
the subject, purpose,
and scope of the
report.
3
 Text: Introduction

Subject - defines the topic and associated

terminology; may include theory,
historical background, and its
significance
Purpose - indicates the reason for the investigation
Scope - indicates the extent and limits of the
investigation
 Text: Methods, Assumptions, and
Procedures

The methods, assumptions, and procedures

used in the investigation are described so the
reader could duplicate the procedures of the
investigation.
Information in this section includes:
• System of measurement
• Types of equipment used and accuracy
• Test methods used
 Text: Methods, Assumptions, and
Procedures
Methods
How did you discover the
problem? What measuring
tools were used? What
measurement system was
used?
Assumptions
What do you think, but cannot
substantiate as fact?
Procedures
How did you gain a better 4
 Text: Results and Discussion

The results and discussion section describes

what you learned about the problem as a result of
your research, identifies the degree of accuracy
related to your findings, and gives the reader your
view of the significance of your findings.
 Text: Results and Discussion

Results
What did you learn about
the problem through your
research?
Discussion
How accurate are your
findings? What is the
significance of the results
of the research?
6
 Text: Conclusion
Restatement of Results
What are the factual findings
that resulted from your
research? What are you
implying as a result of these
findings?
Concluding Remarks
What are your opinions
based on the findings and
results?
9
 Text: Recommendations*
A section called recommendations is often
included in reports that are the result of tests and
experiments, field trials, specific design problems,
and feasibility studies.
The author may recommend additional areas of
study and suggest a course of action, such as
pursuing an alternate design approach.
 Text: Recommendations*

Additional Studies
Is there information that
still needs to be learned?

Suggested Actions
What does the author want
the reader to do with the
information?

12
 Text: References

The references section is

the place where the author
cites all of the secondary
research sources* that
were used to…
• develop an understanding
of the problem
• support the information
contained in the report
14
 Back Matter

The back matter supplements and clarifies the

body of the report, makes the body easier to
understand, and shows where additional
information can be found.
 Back Matter
• Appendixes*
• Bibliography*
• List of Symbols, Abbreviations, and
Acronyms
• Glossary*
• Index*
• Distribution List*
 Back Matter: Appendixes*
Anything that cannot be left out of a report, but is
too large for the main part of the report and would
serve to distract or interrupt the flow belongs in the
appendixes. Examples include:
• Large tables of data • Detailed explanations
• Flowcharts and descriptions of test
techniques and
• Mathematical analysis apparatus
• Large illustrations
Back Matter: Appendixes*
Appendix A
Hose Nozzle Part Drawings
 Back Matter: List of Symbols,
Abbreviations, and
Acronyms*

If more than five

symbols,
abbreviations, or
acronyms are used in
the report, they are to be
listed with their
explanation.
 Tips for Writing

• Create an outline of your report before you

write it.
• Write the body of the report first. Then
write the front and back matter.
• Have someone proofread your report.
References

National Information Standards Organization. Scientific and Technical Reports -

Elements, Organization, and Design. ANSI/NISO 239.18-1995
(R1987).
Alley, M. (1996). The craft of scientific writing. (3rd ed.). New York: Springer-
Verlag
Day, R. A. (1998). How to write & publish a scientific paper. (5th ed.). CT: The
Oryx Press.
Beer, D., McMurrey, D. (2005). A guide to writing as an engineer (2nd ed.).
Hoboken, NJ: John Wiley & Sons, Inc.
Lannon, J. M. (1994). Technical writing. NY: Harper Collins College Publishers
Newman, J. M. (2006). Resources for technical and business writing: Glossary.
Retrieved August 3, 2006 from
http://www.lupinworks.com/roche/pages/glossary.php
Session – 6
Using Graphics

Prepared by:
Arya Wirabhuana
What is the Relevance of Reports and
Graphics as far as Construction
Schedules are concerned?
Relevance of Reports and Graphics?
¾Schedules for Construction Projects are
used to communicate progress and
various other aspects of the Project.
¾Reports and Graphics are the tools that
we use to accomplish that
communication.
Relevance of Reports and Graphics?
¾“A picture is worth a 1000 words.”
Relevance of Reports and Graphics?
¾Scheduling Software provides the
Scheduler with almost unlimited
reporting formats, and the Scheduler
can create additional formats if
something different is required.
Relevance of Reports and Graphics?
¾Most sophisticated Owners will spell out
the Reports/Graphics that they want the
Contractor to provide to them - at the start
of the Contract, as well as when the
Scheduler does the monthly updates.
Corps of Engineers
1. Responsibility Sort
2. Feature of Work Sort
3. Earnings Report
– Projected vs Actual
4. Early Start (primary)/Total Float (2nd)
5. Monthly Schedule Updates
Montana Department of Transportation
1. Total Float Sort
2. Responsibility/Early Start Sort
3. Area/Early Start Sort
4. 60 Day Look-ahead
5. Monthly Schedule Updates
Relevance of Reports and Graphics?
¾Real sophisticated Owners/ Construction
Managers have the Contractor/Subs
submit the original Schedule and the
updates in an electronic format so they
can manipulate the data in whatever
format they need.
Relevance of Reports and Graphics?
¾What is a “Sort”?
Relevance of Reports and Graphics?
¾What is a “Sort”?
¾A Sort is Scheduling jargon for a
specifically formatted Report.
¾It is essentially an abbreviation of the
statement “Sorting specific contract data”.
Layout and the Filter options give you
numerous options for your Sorts.
How do you (as the Project Manager/
Scheduler) decide on what Reports or
Graphics you will need for your Project?
 Deciding on Reports/Graphics:

1. Who will use the information?

2. What format is most effective?
3. What information is required?
4. How to organize the info?
5. What is commonly used?
6. Several data elements in one sort?
Using graphics to communicate
evaluation findings
• Bar graphs
• Pie chart
•Line graphs
• Illustrations
• Photographs
This booklet provides
a brief overview of
different types of
graphics and
guidelines on how to
choose the more
appropriate graphic
for your purpose.
 What are the reasons you might use graphics to
present your evaluation results? (check all that apply)

‰ To help clarify information

‰ To condense information into a smaller space
‰ To simplify complex information
‰ To emphasize key points
‰ To create a picture of the data – a visual presentation
‰ To make a report look more interesting

See the next slide for the answer

If you checked all those items, you are RIGHT!
Using graphics What do I want
my audience to
learn and
remember from
my graph?
 TIPS
• Keep the graphic simple
• Make it understandable without much effort
• Use few words
• Place the graphic at the point in the text (or
on the page) where you refer to it
Characteristics of an effective graph
Include these items in each graphic:
– Title
– Clear units of measure
– Date(s) data collected
– Simple, straightforward design without “clutter”
– Font size 10 point or larger
– Explicit data source(s)
– Sample size, if applicable
 Common graphs
Bar graphs
show comparisons
– Vertical bar graph
– Horizontal bars
– Multiple bars
– Stacked bar (column)
Pie charts
show parts of a whole
Line graphs
show progress over time
Examples:
Vertical Bar
Graphs
Example: Multiple bars (vertical bar graph)

Student achievement in schools that combine social support

and academic press

Lee, V. Social support, academic press, and student achievement: A view from the middle grades in
Chicago. Chicago: Consortium on Chicago School Research, Chicago Annenberg.
http://www.neglected-delinquent.org/nd/resources/spotlight/cflbrief200803.asp
Example: Multiple bars (vertical bar graph)
Idaho 4-H Youth by Grade Distribution

Gillespie, Donna. Journal of Extension. Vol. 44, August 2006.

http://www.joe.org/joe/2006august/tt3.php
Example: Horizontal bar chart
Impact of 4-H involvement on young people's participation in science
activities and classes

University of California Cooperative Extension.4-H Youth Development.

http://cesanbernardino.ucdavis.edu/4-H_Program/
 Example Horizontal bar chart
County 4-H Memberships

2007

2006
Year

2005

2004

0 1000 2000 3000 4000 5000

Membership (in thousands)

Example: Horizontal bar chart

17

20

Percentage of Respondents
Stacked or Column Chart
Example: Stacked Columns (multiple
columns)

White House Website. Office of Management and Budget. Department of Health and
Human Services. http://georgewbush-whitehouse.archives.gov/omb/budget/fy2006/hhs.html
 Pie charts: parts of a whole
• Useful for displaying proportions
– Percentage of clients achieving the outcome
– Percentage of participants who are boys
– Percentage of sites that are rural

• Ensure individual parts add to 100%

Example: Pie Chart

Overall rating of program (n=493 respondents)

Example: Pie Chart
 Example: Pie Chart
Teaching Methods Preferred by 4-H Youth

Guion, Lisa. Journal of Extension. Vol. 42, Feb. 2004.

http://www.joe.org/joe/2004february/rb5.php
Line graphs: time lines

• X axis conveys the time

• Y axis is the variable of interest
• Multiple lines or multiple line graphs can be used
to show the performance of different groups
 Line Graph Example

Borsuk, Alan. Drop Out Rate Correlation to High School Enrollment. Aug. 18, 2005.
http://www.schoolinfosystem.org/archives/2005/08/
 Line Graph Example
Avg. Monthly Referrals

Time Period
 Line Graph Example
8000000
National 4-H Enrollment 1914-2001
7000000

6000000

5000000

4000000
Total

3000000
Youth Enrollment
2000000

1000000

0
1914 1920 1930 1940 1950 1960 1970 1980 1990 2001

Year

Copyright © 2007-2009 Chester NY 4-H

 Illustrations
• Diagrams
• Maps
• Drawings

Convey much information in a small space

Add interest to your report
Present technical information in a simple,
meaningful way
Example - Illustration
Funds raised in 2007 Funds raised in 2008
Target
Target $9000
$6000
$7500
$4500 $6000
$3000 $4500

$1500 $3000

$0 $1500

$0
Example: Illustration
Participating counties (in blue)
Source: BreatheFree Merrill; Lincoln County Health Department, 2006.
Photographs – “a photo is worth a thousand words”
Use to :
• show before and after results
• help audience understand participants’
experiences
• show how a program was implemented
• Compare, count, track changes
Thank You
EFFECTIVE PROJECT
REPORTING
By : Arya Wirabhuana
 GENERAL OVERVIEW
Suitability of the Project for the Client / Promoter
• Past line / Experience of the Promoters
• Risk Analysis based on Educational / Professional / Technical Qualification of the
Client
Type of Proposed Project
• New Project
• Existing Project
• Expansion & Diversification
• Balancing / Modification
• Rehabilitation
Purpose
• Term Loan
•Working Capital
•Share / Bond / Debt Market
Chapter- I Highlights of the Project
1. Name of the Unit / Company / Concern
2. Promoter Group
3. Constitution (Public Ltd. / Pvt. Ltd. / Partnership / Proprietorship
4. Board of Directors / Partners
5. Date of Incorporation
6. Location
7. Registered & Adm. Office
8. Govt. Consents
9. Capacity
a) Installed
b) Capacity Utilization Envisaged
10. Cost of the Project & Means of Finance.
11. Schedule of commencement of Commercial Production
12. Readinest Criteria
13. Employment potential
14. Socio-Economic Advantage for the Area.
Chapter-II Background of the Promoters
1. Bio Data
2. Educational Qualification (Especially Technical / Professional)
3. Past Experience & its Relevance to the Project
4. Interrelationship of Promoters
5. Financial Resources
6. Creditworthiness
7. In case of Existing Company
• Past Working Results
• Past Dealings with Bank / F1
8. Details of Associate Concerns
• Introduction
• Activities
• Banking Dealing & Facilities
• Last 3 years working Results
Chapter-III Organisation & Management

1. Board of Directors / Partners

2. Profile of Directors / Partners

3. Organisation Chart

4. Profile of key Executives

Chapter-IV Location of the Project

Criteria / Reasons for Selection

• Close to Raw Material Sources / Market
• Transport
• Type of Land
• Soil Test Report
• Approach (Close to NHW / SHW / Major Roads / Rail Head)
Chapter-V Technical Aspects & Technology to
be used
1. Brief Introduction and Importance of the Project with Reasons
for Selection of Proposed Technology / Machines.
2. Machine Balancing
3. Product
• Specification, its standard and other Qualitative Information
• Application
• Distinctive Features & Edge Over Competitors
4. Detailed Design, Engineering & Execution
5. Capacity
• Basis of Assessing Installed Capacity with Detailed
Calculation Indicating Critical Machine on Basis of which
Capacity Ascertained no of Working Hours & No. of Days.
• Reasons for particular capacity utilisation
Chapter-V Technical Aspects & Technology to
be used Contd…

6. Technology Adopted and Its Comparison With Alternative

Technology and Reasons for Selection
7. Technical Consultant, if any
• Write up on Consultant indicating Organizational setup,
Experience and Scope of Work etc.
• Agreement With Consultant
8. In case of Foreign Collaboration:
• Write up on Collaborator indicating their Activity, Size and
Turnover.
• Past Experience
• Basis of Selection
• Collaboration Agreement
• Technical Brochure, Balance Sheet, Bank Reference Etc.
Chapter-V Technical Aspects & Technology to
be used Contd…

9. Power
• Requirement & its Availability
• Source
10. Water
• Requirement & its Availability
• Source
11. Compressed Air
• Requirement & its Availability
• Source
Chapter-V Technical Aspects & Technology to
be used Contd…

12. Effluent Treatment

• Type of Effluent
• Measures
13. Manpower
• Requirement, Availability, Sourcing & Recruitment
14. Raw Material
• Requirement of Various Raw Material
• Source and Availability Position Indicating National & Local
Scenario
• Basis of Cost Indicating Tax & Duty Structure.
• Government Regulations if Any
• Arrangement Made for Procurement
Chapter-VI Manufacturing Process

1. Description of Process Along with Plant & Machinery Lay Out

2. Process Flow Chart & Material Flow Chart

Chapter-VII Market & Demand
1. Detailed Note on Demand Supply Position
• Uses of the Product and End Users
• Capacity at National & Local Level
• Price Structure of Existing Manufacture
• Tax Structure
• Performance of Existing Co.’s
• Demand-supply Trend of Last 5 years & Future
Projection
• Export Potential
• Information regarding Substitutes
2. Govt. Regulation
3. Existing Trade Practices
4. Selling Arrangement
5. Market Survey Report, if any
 Chapter-IX Cost of Project
1. Land
• Area & Cost
• Status & Documents
• Proper Legal Documentation
• Contour Plan & Site Development Cost
2. Building
• Justification for Proposed Area
• Building Layout & Plants
• Specification of Construction & Justification of Cost
• Details of Architect indicating their Organisational Setup, Experience and Scope of Work
• Approval of Building Plan by the Competent Authority.
3. Plants & Machinery
• Detailed Quotation of Suppliers
• Comparative Statement & Reasons of Selection with Techno-economic Justification
• Performance Guarantee of Special Machines
Chapter-IX Cost of Project Contd…

4. Misc. Fixed Assets

• Detailed Breakup of Electrical, Workshop Equipments
• Detailed Quotation of Suppliers
• Comparative Statement & Reasons of Selection with Techno-
economic Justification
5. Preliminary & Pre-operative Expenses
• Basis of various Expenses
6. Margin for Working Capital
• Basis of Assessment
• Justification for holding period
• Justification for Margin
7. Contingency
• Basis of Contingency Provision
Chapter-X Means of Finance

1. Justification of Proposed Means of Finance

2. Proposed Shareholding Pattern

3. Steps Taken to Raise the Stipulated Means

4. Status of Regularity Clearances & Legal Compliances

5. Detail of Investible Resources of Prompters

Chapter-XI Profitability & Funds Flow

1. Assumption
• Capacity
• Recovery from Raw Material and Process Loss
• Basis of Consumables
• Basis of Repairs & Maintenance
• Basis of Wages & Salaries
• Basis of Power & Fuel Cost
• Basis of Administrative & Selling Expenses
• Basis of Depreciation Rates
• Basis of Interest on Working Capital and Term Loan
• Basis of Selling Price
• Basis of Income-Tax Rates
Chapter- XI Profitability & Funds Flow contd…
2. Summarised Position of Future Profitability Estimates & Comments
thereon
3. Comments on Fund Flow & Proposed Repayment Schedule
4. Comments on Balance Sheet
5. Comments on Financial Indicators
a) Commercial Viability Ratios
i. Debt Service Covering Ratio-
PAT + Dep.+ Int. TL/TL+Int. TL (Minimum 1.5)
ii. Security Margin (Net Fixed Assets – TL/Net Fixed
Assets)
iii. Fixed Assets Coverage Ratio – Net Fixed Assets / OSTL
iv. BEP Analysis – BEP (Fixed Cost / Sales – Variable
Cost)
Cash BEP (FC-Depr. / Sales – Variable
Cost)
Chapter- XI Profitability & Funds Flow contd…

v. Sensitivity Analysis
• Base DSCR
• DSCR with Reduction of Sales Prices
• DSCR with Increase in Raw Material Cost.
b) Efficiency Ratios
I. Net Sales/ Total Tangible Assets (Times)
ii. PBT/ Total Tangible Assets (%)
iii. Operating Cost/ Income (%)
iv. Bank Loan for WC/Current Assets (%)
v. Inventory + Receivables / Net Sales (Days)
Chapter- XI Profitability & Funds Flow contd…

c) Risk Related Ratios

i. Profitability
- PBT/ Sales (%)
- PAT/Net Sales (%)
ii. Interest Coverage = PBIT/Interest ( Times)
iii. Return on Capital Employed (ROCE) = PBIT/ Total Assets
iv. Current Ratio = CA/CL
v. Liability against Net worth ( Important for Working Capital)
= TOL/TNW (Times)
vi. Return on Assets = PBT/ Total Assets
vii. Debt Equity Ratio - Important for Term Loan
= Term Loan/ Promoter Contribution
Chapter- XII Implementation Schedule

1. Detailed Implementation Schedule Indicating each activity and its

estimated date of Completion

2. PERT Diagram
Chapter- XIII Security Coverage

1. Primary Security and Detailed Calculation of Security Margin

2. Personal Guarantee of Promoters With Their Net Worth

3. Collateral Security & Valuation thereof by empanelled Regd. Valuer

4. Other Securities
• Escrow Mechanism
• Guarantee by Collaborator
• Third Party Guarantee
• Step in rights
Chapter- XIV SWOT Analysis

1. Strengths
• Strengths of the Company & Project like Project Location,
Market Share, Dealers Network, Technology, Collaboration,
Government Certifications etc.

2. Weaknesses
• Weakness of the Company like Old Technology, Product
Obselence Power Shortages, Raw Material Problem, Labour
Problem, Competition, Statutory Clearances etc.
2. A Mitigating Factors to overcome / minimize each factor.
Chapter- XIV SWOT Analysis Contd…

3. Opportunities
• Opportunities Available to the Company like Industry
Growth, Future Expansion, Backwork or Forward
integration, Competitiveness, Technology Upgradtion etc.

4. Threats
• Threats to the company like chances of product Obsolesance,
due to Government Policies, due to Completion with Major
Players etc.

4. A Mitigating Factors to Minimize threats.

Annexures of Project Cost & Profitability

1. Details of cost of Project & Means of Finance

2. Details of Cost of Land & Site Development
3. Details of Building & Civil Construction
4. Details of of Plant & Machinery
5. Details of Misc. Fixed Assets
6. Details of Preliminary & Preoperative Expenses
7. Details of Working Capital and its Margin
8. Details of Capacity Calculation & Sales Realisation
9. Details of Salary & Wages
10. Details of of Power & Fuel
Annexures of Project Cost & Profitability Contd..

11. Projected Profitability Statement

12. Projected Cash Flow
13. Projected Balanced Sheet
14. Details of Repayment Schedule & Interest on Term Loan.
15. Deprecation Calculation : SLM & WDV Method
16. Calculation of Income Tax Payable
17. Calculation of DSCR & Sensitivity Analysis
18. Key Financial Indicators.
Thank You