Project report

On
D-EDGE (Denim Edge)
PREPARED BY:
MAHAM ASIF
FARYAL MUGHAL
SH.MUHAMMAD FARHAN
SYED SAMAR ABBAS

SUBMITTED TO:

BAHRIA UNIVERSITY, KARACHI CAMPUS

Name of the firm

D-EDGE (Denim Edge)

Address of the company

D-EDGE,
Sector 28,Korangi Industrial Area.

(Karachi)

Scale of the organization

Small scale industry

Nature of the product

1.
2.
3.
4.
5.
6.

Manufacturing all types of denim product.

Jeans.
Printed Jackets.
Printed Shirts.
Handbags.
Shoes.
Customized product can be manufactured.

Estimated cost of the project

60,41,500

Market Area
Limited to Karachi

PRODUCT DETAIL
Raw Material:
The main raw materials required to produce the Jeans,
Jackets, Shirts, Handbags and Shoes are Denim & cotton yarn,
thread, button, rivet, zip, stickers, sole, leather.

 Product & its use:

The popularity and the demand of denim jeans,
handbags and shoes are increasing day by day. Jeans, handbags and
shoes have left behind the tailor made cloth. Consumer can wear
Jeans casually with shirt; even girls can carry the casual look by
enhancing their look with a handbag. Today, consumers wear Jeans
even with jackets. Each & every class of people wears Denim Jeans.
So, we have enlarge our business plan with not just by manufacturing
denim jeans but also printed shirts, handbags, shoes and jackets.

SOURCES OF RAW MATERIAL

Gener
ally,
raw

Sr. no.
1
2
3
4
5
6
7
8
9
10
11

Material
Denim Cloth
Cotton Cloth
Thread
Button
Rivet
Zip
Stickers
Plastic
Washing acid
Leather
Sole

Sources
Karachi
Punjab
Punjab
Karachi
Karachi

Karachi

the

material of -------- is available in Karachi and even outside from

Karachi

I take maximum one and half year to implement this type of project the
time required for completing each activity of the project till commercial
production is as follows:

No.

Activity

1
2
3
4
5
6

Preparation of Project
Selection of a site
Registration of SSI
Availability of finance
Construction of building
Arrangement of machines

equipments
Erection
&

including electrification
Recruitment of personnel
Labour

Completi
on Time
1 month
2 months
1 month
3 months
6 month
& 1 month

commissioning 1 month
& 2 month

Other Fixed Assets

No.
1
2
3

Particulars

Qty.

Delivery Van
Furniture
Computer

Amount (Rs)

2
2

5,00,000
3,50,000
50000

9,00,000

Total

Details of Land & Building

No.
1
2

Particulars
Land
Building

Area
1400 yards
2000 sq. ft.

Rate
321
350

Total

Total
4,50,000
7,00,000
11,50,000

Details of Plant & Machinery

No.
1
2
3
4
5
6
7
8
9
10
11
12
13

Particulars
Simple stitch machine
Chain stitch machine
Folding machine
Stain removing machine
Washing machine
Cutting machine
Fitting machine
Embroidery machine
Iron
Printing machine
Over lock machine
Logo-making machine
Handling equipment

Total

Qty.
10
6
1
1
2
1
1
2
1
1
2
1
-

Amount (Rs)
2,00,000
4,80,000
1,50,000
70,000
3,00,000
2,00,000
1,00,000
1,00,000
25,000
75,000
1,00,000
25,000
75,000
19,00,000

Preliminary, Pre-operative & miscellaneous expenses Rs. 5, 00,000

Total Fixed Assets

No.
1
2
3
4

Particulars

Amount (Rs)

Land & Building

Plant & Machinery
Other Fixed Assets
Preliminary & miscellaneous Exps.

11,50,000
19,00,000
9,00,000
5,00,000

44,50,000

Total

Raw Material Requirements

No.
1
2
3
4
5
6
7

Particulars

Qty.

Denim cloth
Cotton cloth
Thread
Button
Zip
Stickers
Pocketing

3000 m
1500 m

Clothes
8 Plastic Box
Washing
9
Acid

Rate

Monthly

Annually

6000
5000
7000

80
60
0.7
4.8
1.5

2,40,000
1,20,000
15,000
4,200
24,000
10,500

28,80,000
14,40,000
1,80,000
50,400
2,88,000
1,26,000

500 m

4,000

48,000

2700

5,400

64,800

500 lt

20

10,000

1,20,000

4,33,100

51,97,200

Total

Utility
No.
1

Particulars
Qty.
Rate
Electricity
1000KWH
5

Monthly
10,000

Annually
1,20,000

Water

1,500
11,500

Total

18,000
1,38,000

Man Power Requirements

TOP LEVEL
No.

Particulars

1
2
3

Manager
Accountant
Designers
Total

No. of
Employees
2
1
1

Monthly
Salary
14,000
5,000
5,000
24,000

Yearly
Salary
1,68,000
60,000
60,000
2,88,000

MIDDLE LEVEL
No.

Particulars

No. of

Monthly

Yearly

1
2

Salesman
Clerk & computer

Emp.
5
1

Salary
15,000
2,500

Salary
1,80,000
30,000

operator
Store keeper
Total

3,000
20,500

36,000
2,46,000

Lower Level

Other
Administrative
Expenses
No. of
Monthly
No.
Particulars
Yearly
No.

1
2
3
4
5
6
7

Total

8
9
10
11

Particular

1 Telephone
Stain stitch machine
2 Postage & stamp Duty
3 Advertising & Marketing
Operator
4 Consumer
stores
Simple
stitch machine
5 Miscellaneous
Operator
Total Operator
Folding machine
Washing machine Operator
Cutting & Fitting machine
Operator
Particular
Particular
Embroidery machine
1
Raw Material
Operator
2
Utility
3 Lock
Wages
& salary
Over
machine
4
Administrative Exp.
Operator
5
Other contingencies
Printing machine Operator
Total
Iron Machine Operator
Packing machine Operator
Watchman
Total

No.No.

Monthly
Emp.
Salary
6
10
1
1
1

Annually

1,500
15,000
500
7,000
1,200
20,000
1,000

Salary
18,000
1,80,000
6,000
84,000
14,400
2,40,000
12,000

11,200
1,500 1,34,400
2,40,000
1,200
18,000
1,500
14,400

Monthly
Monthly Annually
Annually
2 4,17,700
3,00050,12,400
36,000
11,500
1,38,000
1 95,100
1,50011,41,200
18,000
11,200
1,34,400
3,000
36,000
1 5,30,500
1,50064,26,000
18,000

1
1
2

1,200
1,200
2,900
50,500

14,400
14,400
34,800

606000

Level Of Management
Levels Of Management
Top Level
Middle Level
Lower Level
Total

Monthly
Salary
24,000
20,500
50,500
95,100

Working Capital

Annual
Salary
2,88,000
2,46,000
6,06,000
11,40,000

Total Cost of Project

No
.
1
2

Particulars

Amt. (Rs.)

Total Fixed Capital

Total Working Capital

44,00,000
17,28,000

Total

61,28,000

Sources of Fund

No.
1
2

Particulars
Owned Capital
Borrowed Capital

Percentag
e
60 %
40 %

Amt. (Rs.)
36,24,900
24,51,200

Total

60,41,500

Interest
No

Particulars

Percentag

Amt. (Rs.)

No.
1
2
3
4

.
1 Owned
2 Borrowed Loan (SBS)
Particular
Value
Total
Building
11,50,000
Machinery
19,00,000
Other Fixed Assets
8,50,000
Computer
50,000
Total

Rate
15%
20%
15%
20%

e
9.5 %
3,44,365
12.5 %
3,02,075
Amt.
6,43,498
1,72,500
3,80,000
1,27,500
10,000
6,90,000

Depreciation
No.
Particular
1 Building
2 Machinery
3 Other Fixed Assets
Total

Value
11,50,000
19,00,000
9,00,000

Rate
5%
5%
5%

Amt.
57,500
95,000
45,000
1,77,500

Maintenance & Repair

Cost of Production
No.
1
2
3
4

Particulars
Raw Material
Utilities
Manpower
Repairs & Maintenance
Total

Cost Analysis

Amt. (Rs.)
51,97,200
1,38,000
11,40,000
1,97,500
66,72,700

Particulars

Amt. (Rs.)

Variable Cost
Raw Material
Denim Cloth
Cotton Cloth
Thread
Button
Zip
Stickers
Pocketing Clothes
Plastic box
Washing Acid
Other contingency
Semi Variable Cost
Utilities
Administrative Exps.
Man Power (Lower Level)
Fixed Cost
Preliminary & Pre-operative expenses

Amt. (Rs.)

28,80,000
14,40,000
1,80,000
50,400
2,88,000
1,26,000
48,000
64,800
1,20,000
36,000

52,33,200

1,38,000
1,34,400
6,06,000

8,78,400

written off
Man Power (Middle & Top level)
Interest on capital
Depreciation
Repairs & Maintenance

Total Cost

50,000
5,34,000
6,43,498
6,90,000
1,97,500

21,14,998

82,26,598

Profitability Analysis
Particulars
Sales
(Less) Variable Cost
Raw Material
Utilities
Manpower
Admin. Exp.
Other contingencies
Contribution
(Less) Fixed Cost
Manpower
Depreciation
Maintenance & Repairs
Insurance
Int. on loan
Profit Before Tax (PBT)
(Less) 35% Tax
Profit After Tax (PAT)

Amt. (Rs.)
51,97,200
1,38,000
6,06,000
1,34,400
36,000

5,34,000
6,80,000
1,97,500
20,000
6,43,498

Amt. (Rs.)
88,15,000

61,11,600
27,03,400

20,74,998
6,28,402
2,19,941
4,08,461