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Hi Gautam, 

The following is a slightly 'dumbed down' approach, but is easier to understand to the 'proper' response.

Functional Requirements

These are requirements for things that do something. For example, "I want a button that if I click it prints out the Users' details". These are the most common requirement, but it does rather depend on what you are 'building' or what the project you are working on is.

Typically, each Functional requirement should have an end result due to that process.

System Requirements

System requirements are also sometimes called Non-functional requirements. However, they don't have to be. A system requirement may be that you wish to carry out an upgrade to a platform as a part of your project, It still has an end result, so it could fall under the functional requirement, but as it is purely system driven, you could place it under the System requirements. 

A non-functional requirement is something that doesn't, on its own, have a direct end result. So for example, a non-functional requirement might be "I want to improve the performance of the platform, so that I can process a work item quicker".

If you aren't sure, then feel free to post those that you would like clarification on. Also, there are quite a few good documents on this site that might help with such a question. Having said that, always happy to help.

Stewart  

Completely agree with Kimbo's comments.

One thing I wanted to add is understanding the current state is often critical in order to clearly see the reason for user's comments such as the one used above. Quite often users will be hindered by a lack of a certain function or feature and will come up with own workarounds, or will have an impression that having the ability to do X will make their lives easier. In this case it's important to understand what are they trying to achieve, and how does this fit with your understanding of the current vs future state.