Project Report

OF

Readymade Garments Mfg.

Cost of Project
1000000

:: Proprietor ::
SEEMA VISHNU GORE
AT.YOGESH NAGAR AMBAD ROAD JALNA

Under Scheme of
bij bhandawal (D.I.C.)
 PROJECT REPORT
INTRODUCTION:

Points Wise Datails

i) Project objective/goal
The applicant proposes to set up a Readymade
Garments unit. Jalna District and surrouding area is
developing very fast in all the sectors location of our
proposed unit is At above address. This area is also
developing the location is most suitable for every one
residing in this and surrounding area. I have got good
experence in this field. I have therefore decided to
obtain loan from Bank. Because of all round
development in various sectors in jalna District and
surrounding area, the speed of population is increased.
So there is very good demand for the Readymade
Garments Unit in this area.

ii) Background of the Applicant:-

1 Full Name SEEMA VISHNU GORE

AT.YOGESH NAGAR AMBAD ROAD
2 Address
JALNA
3 Name Of Unit Readymade Garments Mfg.

4 Project Cost 1000000

5 Age 26

6 Caste / Category SC

7 Education 9 th

8 Experience Good Experience in this line

9 No of Working day 330 Days

10 Employment 5
Whether Loan obtained form Govt. Scheme in the
11
past.
No.

12 Constitution Proprietary

13 Pay back period 5 Years

14 Project implementation period 1 Months

15 Remarks There is very good scope to do above activity.

 From the point of view of Techinical Feasibility of the Project
Fallowing Point to be consider
1 Location of the Project
2 Material Availablity

3 Market for Finished Goods

4 Availability of Transportation

5 Experience of Proprietor

1) The locational benefit

The location benifit to the unit is that unit is located at
the place where there no project nearby area. Is the
Readymade Garments unit in all over progress are
going on in the city. We will get the benifit of this as to
get the more market for Readymade Garments unit.

2) Material availability For this project Material available at Jalna and

Aurangabad Where there the Readymade Garments
issue in cheap rate.

3) Market for the Goods This is Local market level business. Proprietor use public
place for the business where the Readymade Garments
unit is grow up.

4) Availability of the transport facility for Goods can be supplied thruough the either tractor or
supply of Goods rikshaw all this transportation vehicle are available
locally at very reasonable rate.

5) Experience Proprietors has the worked in the same line for last 5
years and he knows all in & outs of the Unit He can
handle his own uint very easily.

6) Market survey Report: The place for the project is at Jalna which is one of the
developing destrict in the Marathawada Region.

7) Revenue Generation Statement : The nature of business is Selling and Trading of

Readymade Garments which is all season business. The
works will go no for 330 days in a year .

9) Availability Water :
No need of water.

10) Manpower : The require manpower skilled Worker & unskilled

Worker and administrative staff are easily available to
the unit.
 10) Manpower : The require manpower skilled Worker & unskilled
Worker and administrative staff are easily available to
the unit.

A) Project Requirement :-
S. No. Particulars Acquired To be Acquired Amount (Rs.)
1 Miscellaneous Fixed Assets 0
2 Furniture 0
3 Readymade Garments Machinery & Raw Mat. 1000000
Total Project Cost 1000000
As par Quotation/Attach Orignil Quotation

[B]. TOTAL PROJECT COST:

S. No. Particulars Amount (Rs.)
1 Capital / Non recurring Expenditure 0
2 Readymade Garments Machinery & Raw Mat. 1000000
TOTAL 1000000

[C]. MEANS OF FINANCE

S. No. Particulars % Amount (Rs.)
1 Own Contribution 5% 50000
2 CMEGP SUBSIDY 35% 20% 200000
3 Bank Loan 75% 750000
TOTAL: 1000000

* Subsidy, if any

[D]. PER CAPITA INVESTMENT :

S. No. Particulars Amount (Rs.)
1 Total Capital Expenditure 1000000
2 Total Human Resource Required (In Nos.) 5
3 Per Capita Investment (1 ÷ 2) 200000

(E). Wages & Salaries: At 100 % Capacity Utilisation

S. No. Category Quantity Rate Amount (Rs.)
1 Skilled Worker 3 5000 15000
2 Unskilled Wroker 2 4000 8000
Total 5 23000

(F). Other Overheads / Expenses: At 100 % Capacity Utilisation

S. No. Particulars P.M. Amount (Rs.)
1 Light Bill & Other Utilities 1000 12000
2 Rent 3000 36000
3 Selling & General Admin. Exp. 250 3000
 4 Advertisement & Publicity 300 3600
5 Postage Telephone Exp. 200 2400
6 Packing 200 2400
7 Travelling Exp. 350 4200
8 Transportation 500 6000
9 Insurace 400 4800
10 Salary 0 0
Total 74400

Total Sales At 100 % Capacity Utilisation

S. No. Particulars 3 Months 1st Year Rs.
From the Activity as Noted On
1 350000 1400000
First Page
Total 350000 1400000

Statement Showing The Depreciation on Fixed Assets

Bulding ( Depreciation Rate @ 5 %)
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Opening Bal. 0 0 0 0 0
Deperation 0 0 0 0 0
Closing Bal. 0 0 0 0 0
Furniture ( Depreciation Rate @ 5 %)
Opening Bal. 0 0 0 0 0
Deperation 0 0 0 0 0
Closing Bal. 0 0 0 0 0
Machinery ( Depreciation Rate @ 10 %)
Opening Bal. 20000 19000 18050 17148 16290
Deperation 1000 950 903 857 815
Closing Bal. 19000 18050 17148 16290 15476
Total Depreciation
Machinary 1000 950 902.5 857.375 815
Bulding 0 0 0 0 0
Furniture 0 0 0 0 0
Total Dep. 1000 950 903 857 815

Loan Repayment Schedule

Bank Loan
Year Op. Balance Rec. Clo. Interest Total Repay
750000 Installment
37500 Balance 712500 12.5 %23438
P.A. 60938
712500 37500 675000 22266 59766
1 675000 37500 637500 21094 58594
637500 37500 600000 19922 57422
Total Rs. 150000 86719 236719
600000 37500 562500 18750 56250
562500 37500 525000 17578 55078
2 525000 37500 487500 16406 53906
487500 37500 450000 15234 52734
Total Rs. 150000 67969 217969
450000 37500 412500 14063 51563
412500 37500 375000 12891 50391
3 375000 37500 337500 11719 49219
337500 37500 300000 10547 48047
Total Rs. 150000 49219 199219
300000 37500 262500 9375 46875
262500 37500 225000 8203 45703
4
 4 225000 37500 187500 7031 44531
187500 37500 150000 5859 43359
Total Rs. 150000 30469 180469
150000 37500 112500 4688 42188
112500 37500 75000 3516 41016
5 75000 37500 37500 2344 39844
37500 37500 0 1172 38672
Total Rs. 150000 11719 161719

Loan Repayment Schedule (Bij Bhandwal ) Loan

Year Op. Balance Rec. Clo. Balance Interest Total Repay
Installment 4 % P.A.
200000 10000 190000 2000 12000
190000 10000 180000 1900 11900
1 180000 10000 170000 1800 11800
170000 10000 160000 1700 11700
Total Rs. 40000 7400 47400
160000 10000 150000 1600 11600
150000 10000 140000 1500 11500
2 140000 10000 130000 1400 11400
130000 10000 120000 1300 11300
Total Rs. 40000 5800 45800
120000 10000 110000 1200 11200
110000 10000 100000 1100 11100
3 100000 10000 90000 1000 11000
90000 10000 80000 900 10900
Total Rs. 40000 4200 44200
80000 10000 70000 800 10800
70000 10000 60000 700 10700
4 60000 10000 50000 600 10600
50000 10000 40000 500 10500
Total Rs. 40000 2600 42600
40000 10000 30000 400 10400
30000 10000 20000 300 10300
5 20000 10000 10000 200 10200
10000 10000 0 100 10100
Total Rs. 40000 1000 41000

[I]. Projections of Performance and Profitability:

S. No. Particulars 1st Year (Rs.) 2nd Yr. 3rd Yr. 4th Yr. 5th Yr.
A. Sales during the year (Qty.)(in Non.) (Rs.) (Rs.) (Rs.) (Rs.)
1400000 1470000 1543500 1620675 1701709

% Sales of installed capacity 100% 100% 100% 100% 100%

B. Annual Sales 1400000 1470000 1543500 1620675 1701709
C. Expenditure
1. Materials 728000 764400 802620 842751 884889
2. Power and Fuel 12000 12600 13230 13892 14586
3. Wages & Salaries 276000 289800 304290 319505 335480
4. Rent 36000 39600 43560 47916 52708
5. Other Manufacturing Expenses 2400 2640 2904 3194 3514
6. Depreciation 1000 950 903 857 815
Total Expenditure 1055400 1109990 1167507 1228115 1291990
D. Gross Profit (B-C) 344600 360010 375994 392560 409718
E. Interest on
1. Bank Loans 86719 67969 49219 30469 11719
 2. Bij Bhandwal 7400 5800 4200 2600 1000
F. Other Overheads Expenses
Selling & General Admin. Exp. 3000 3150 3308 3473 3647
Advertisement & Publicity 3600 3780 3969 4167 4376
Postage Telephone Exp. 2400 2520 2646 2778 2917
Travelling Exp. 500 525 551 579 608
Insurance 2400 2520 2646 2778 2917
G. Profit before Taxation {D-(E-F)} 257881 292041 326775 362091 398000
H. Provision for Taxes 13822 14514 15239 16001 16801
I. Cash Profit (G-H) 244059 277528 311536 346090 381198
J Repayment 236719 217969 199219 180469 161719
K Net Profit 7340 59559 112317 165622 219480

[J]. Calculation of Net Cash Accruals and Debt Service Coverage Ratio:
S. No. Particulars 1st Year (Rs.) 2nd Year 3rd Year 4th Yr. 5th Yr.
A. Net Profit 7340 (Rs.) 59559 (Rs.)
112317 (Rs.)
165622 (Rs.)
219480
B. Add: Back-Depreciation 1000 950 903 857 815
C Net Cash Accruals - TOTAL A 8340 60509 113219 166479 220294
Payments:
Bank Interest 86719 67969 49219 30469 11719
Bij Bhandwal Interest 7400 5800 4200 2600 1000
Installment 150000 150000 150000 150000 150000
On Working Capital Interest
Total - B 244119 223769 203419 183069 162719
D.S.C.R. = A/B 0.03 0.27 0.56 0.91 1.35
Average D.S.C.R 0.62

[K]. Break Even Point Analysis 3 Yers :

1st yr 2st yr 3st yr
(A). Fixed Cost:-
(i). Rent 36000 39600 43560
(ii). Insurace 2400 2520 2646
(iii). Electricity 12000 12600 13230
(iv). Traveling 500 525 551.25
(v). Depreciation 1000 950 903
(vi). Interest on Bank Loan + Margin Money 94119 73769 53419
TOTAL 146019 129964 114309

(B). Variable Cost:- 1st yr 2st yr 3st yr

(i). Materials 728000 764400 802620
(ii). Labour Cost 276000 289800 304290
(iii). Packing 2400 2640 2904
(iv). Transportation 6000 6600 7260
(v). Travelling 500 525 551.25
(vi). Other Expenses
TOTAL 1012900 1063965 1117625
(C). Sales : 1400000 1470000 1543500

(L). Break Even Point :

Fixed Cost x 100 = Fixed Cost x 100 =
(Sales–Variable Cost)
18.86 16.00 13.42
Contribution
(N). Cash Flow Statement: 1st yr 2st yr 3st yr
i). Own Capital = 50000 50000 50000
ii). Profit = 7340 59559 112317
iii). Net Cash Accruals = 8340 60509 113219
iv). Repayment of Loan = 236719 217969 199219
v). Net Cash in Hand at the end of 1st Yr. = 244059 277528 311536
150000
(P). Repayment of Loan: Repayment of Loan will be made within 5 years (60 months) per month Installment
Rs. 16602 /-

________________________
SIGNATURE OF APPLICANT
 Installment + Interest + Net Profit
DSCR
Installment + Interest