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PROJECT REPORT OF
READYMADE GARMENTS M/S. REVANSIDDHA INDUSTRIES
-: Prepared by:-
SHREYANS TEJPAL SHAH Chartered ants
127/2, Rockel Lane, Vakharbhag, Sangli Tel: (0233) 2623625, 2622536
HIGHLIGHTS OF THE PROJECT
1.
Name of the proprietor
: MRS. PI PANDURANG GAVADE
2.
Proposed Location
: Plot No. B – 21, MIDC Jath, Dist. Sangli.
3.
Constitution
: Proprietorship, M/s. Revansiddha Industries
4.
Nature of Activity
: Readymade Garments Manufacturing
5.
Status
: Land in Possession
6.
Cost of Project
: ₹ 54.00 Lacs
7.
Means of Finance
: Capital ₹
8.
Education & Experience
14.00 Lacs
Bank Loan ₹
40.00 Lacs
Total ₹
54.00 Lacs
: B. A. & Diploma in Fashion Deg Experience of 1 year as trainer in Fashion Deg Institute.
Project Report of M/s. Revansiddha Industries, prepared by CA Shreyans Tejpal Shah.
PROJECT REPORT OF READYMADE GARMENTS M/S. REVANSIDDHA INDUSTRIES _________________________________________________________________________ PREFACE: Readymade garment industry has occupied a unique place in the industrial scenario of our country by generating substantial export earnings and creating lot of employment. Its contribution to industrial production, employment and export earnings are very significant. This industry provides one of the primary necessities of life. The employment provided by it is a source of livelihood for millions of people. It also provides maximum employment with minimum capital investment. Since this industry is highly labor-intensive, it is ideally suited to Indian condition. This project report is prepared for the manufacture of gents shirts, gents tros as they find vast acceptance in local and international markets. Such establishments can be easily set up by any person having the knowledge of cutting and stitching operations. DEMAND AND SUPPLY SCENARIO: Readymade garments are the choice of urban people. It is also gaining vast acceptance in semi urban and rural areas. The huge charges made by tailors and delays in delivery have made people to switch over to readymade garments. In domestic market and export market, it has made spectacular progress in the last decade. This industry is becoming very vibrant and lot of foreign investment pouring in this industry because of low risk and high earning nature of this industry. As these products are fashion oriented, entrepreneurs should always keep in mind the changing fashion styles. Considering its advantageous position, it is assumed that there will be no constraint in marketing of gents readymade garments.
Project Report of M/s. Revansiddha Industries, prepared by CA Shreyans Tejpal Shah.
CONSTITUTION OF THE FIRM: This project is proposed as a Proprietorship of Mrs. Pi Pandurang Gavade in the trade name as M/s. Revansiddha Industries. She is a dynamic woman entrepreneur and personally shall be looking after the business. Initially she has decided to start the business as a job-work activity. In the later stages, gradually, the business shall be shifted to own manufacturing.
REGISTRATION DETAILS: Being a proprietorship firm, there is no registration required regarding the constitution of the firm. Other statutory registrations such as VAT, etc. shall be taken afterwards. UNIT REGISTRATION DETAILS: This project shall be a small scale unit as per GR of Govt. of Maharashtra and MSME Act. Registration under MSME Act as a SSI is in the process and shall be procured soon. LAND & BUILDING: It has been decided to start this project in own land at Plot No. B – 21, MIDC Jath, Dist. Sangli. The said location is well connected with transportation facilities as it is located very nearby to the highway. So no problem of transportation and this location is situated at “D+” Zone as per notification by Government, making the project eligible for the Assistance Subsidy from the State Government as well as Central Government. The building required for the project is to be constructed adhering to the guidelines of MIDC and as per the required specifications of the project. The required building shall easure to approx. 4000 Sq. Ft., and total cost of Land & Building shall be approx. ₹ 32 Lacs. MACHINERY: This project is basically skill based and labour oriented business. The required machinery can be enumerated as follows: -
Project Report of M/s. Revansiddha Industries, prepared by CA Shreyans Tejpal Shah.
1. Sewing Machines 2. Industrial Garment Press / Iron 3. Cutting Machines 4. Other Tools 5. Deg & Embroidery Machine (if needed) 6. Computer and printer.
PROJECT COST DETAILS: ₹ In Lacs A. Land and Building
32.00
B. Plant & Machinery
30.00
C. Electrification & Installation
03.00
D. Misc. & Other Assets
03.00
Total
68.00
MEANS OF FINANCE: This project shall be financed in following manner: ₹ In Lacs A. Capital contribution
18.00
B. Bank Term Loan
50.00
Total
68.00
TECHNICAL ASPECTS: METHOD OF PRODUCTION: The process includes the following steps: PROCUREMENT OF FABRIC: Dyed/bleached/printed cotton/synthetic fabrics as per demand are to be procured from the open market. The fabric will be checked by laying on the inspection table against light before
Project Report of M/s. Revansiddha Industries, prepared by CA Shreyans Tejpal Shah.
cutting so that unevenness in color/shade or any other fault, if any visible in the fabric are eliminated. CUTTING AND STITCHING: The checked fabric is placed on the cutting table in layers and then the different parts of the respective garments are marked by a chalk as per different sizes. Cutting is carried out by the cutting machine. Stitching is carried out for individual portion of the garments by skilled workers with the help of over lock, lock stitch machines etc. SINGEING, CHECKING, PRESSING AND PACKING: All garments are charged into singeing machine containing mild detergent and enzymes and singeed for 4 hours in order to eliminate dirt and stains acquired during the manufacturing process. After singeing, the garments are hydro extracted to eliminate excess water and after this, these garments are dried in tumbler dryer. End checking is done before pressing and packing on the checking table so that any fault in the piece may be eliminated and protruding threads eliminated. The individual pieces are pressed by steam presses to eliminate any wrinkle marks and packed in the carton boxes. SPECIFICATIONS AND STANDARD: The quality of garments primarily depends on quality of fabric used. Therefore, care must be taken while purchasing fabrics to ensure good color, fastness properties, uniformity in shade etc. Generally garments are made as per customer’s specification in respect of size, design and fashion. EFFECTS ON ECO SYSTEM: The method of production does not generate pollution. The usage water is limited only towards the domestic purposes and drinking. The effluent generated out of the same, shall be utilized for gardening purposes. POWER SAVING: Maximum care should be taken while selecting the machinery and other electrical equipment so as to ensure minimum power consumption. Project Report of M/s. Revansiddha Industries, prepared by CA Shreyans Tejpal Shah.
WASTE AND EFFLUENT: There is no chemical or water processes involved in this unit. Thus, there will be no effluent or wastage generation. Water is to be used for domestic purposes only and the wastage of water shall be utilized for gardening purposes. PROJECT HYPOTHESIS (ASSUMPTIONS) 1. This project is based on 300 working days in a year. 2. This industry is labour intensive, thus working efficiency is considered at 80% in the initial stages. 3. Costs of machinery and equipment/material mentioned refer to a specific make and approximately to those prevailing at the time of preparation of this project. 4. Installation and electrification cost is taken as a percentage of cost of machinery and electrification. 5. Non-refundable deposits, project report cost, trial production, security deposits with Electricity Board are taken under preoperative expenses. 6. Depreciation has been considered: (a) On Building @ 10% (b) On plant and machinery @ 20% TIME SCHEDULEP: Implementation period in months for executing this project in stage-wise is given below: Note: Considering that some of the above activities may be overlapping, the project implementation will take a total period of six months approximately for starting the production. Sr. No.
Activity
Period
1.
Selection of site/working shed / Application
1 Week
2.
Acquisition of Plot of Land
2 months
3.
Preparation of feasibility report
1 month
4.
Arrangement of finance (Term loan and
Project Report of M/s. Revansiddha Industries, prepared by CA Shreyans Tejpal Shah.
Working capital)
1 month
5.
Construction of required building
6 months.
6.
Procurement of machinery and equipment
1 month
7.
Plant erection and electrification
2 weeks
8.
Arrangement of raw material including Packaging material etc.
1 month
9.
Recruitment of manpower
1 month
10.
Selection of market channel
1 month.
11.
Miscellaneous works like power/water Connection etc.
2 months.
FINANCIAL ANALYSIS: Attached separately.
*****
Project Report of M/s. Revansiddha Industries, prepared by CA Shreyans Tejpal Shah.
PROJECT REPORT OF GARMENTS MANUFACTURING
COST OF PROJECT
₹ in Lacs
Land & Building
32.00
Plant & Machinery
30.00
Elect Installation
3.00
Other Assets
3.00 68.00
MEANS OF FINANCE : Promoters
18.00
Bank T. L.
50.00 68.00
Working Capital Requirement
₹ in Lacs
Stock in Trade (Work in Progress)
6.37
Debtors / Receivables
9.00 15.37 Bank CC
12.00
Margin
3.37
Project Report of M/s. Revansiddh Industries, prepared by CA Shreyans Tejpal Shah.
DEPRECIATION : Building
10%
3.20
Machinery
20%
6.00 9.20
CAPACITY Products
Multiple Products
Number of Machines
50
Installed Capacity (17 Shirts per m/c per shift)
750 Nos / Day
Number of working days
300
Utilization 1 st year
80%
Annual production
180000 Nos
Job-Work Charges
Qty/Nos
Rate ₹
Total
180000.00
60.00
108.00 108.00
INTEREST : Term Loan
13.75%
50.00 Lacs
6.88
Cash Credit
13.75%
12.00 Lacs
1.65 6.88
Project Report of M/s. Revansiddh Industries, prepared by CA Shreyans Tejpal Shah.
Labour Qty
Salary
Month
Rs. In Lacs
Official
2
6500.00
12
1.56
Marketing
2
6500.00
12
1.56
Supervisor
6
7000.00
12
5.04
Skilled
55
5500.00
12
36.30
Unskilled
15
4000.00
12
7.20 51.66
Power / Electricity Load Connected
30.00 KW
Maximum Demand
30.00 KW
Consumption for 12 Hrs
150.00 Units
Consumption Per Year Total Cost
45000.00 Units @ ₹ 7.10
3.20 ₹ Lacs
Project Report of M/s. Revansiddh Industries, prepared by CA Shreyans Tejpal Shah.
PROFITABILITY STATEMENTS ₹ in Lacs Jobwork Charges [-] Consumables purchases @ 5% Labour
108.00 5.40 51.66
Mfg. Exps @ ₹ 30000 p.m.
3.60
Electricity
3.20
Repair & Maintenance @ 5 %
3.40
Depreciation
9.20 76.46
GROSS PROFIT
31.55
[-] Interest on T. L.
6.88
Interest on C.C.
1.65
n Exps
2.40 10.93
Net Profit Bef. Tax [-] I. Tax provision @
76.46
10.93 20.62
30%
Net Profit After I.Tax prov.
6.19 14.43
Add Depreciation
9.20
CASH ACCRUALS
23.63
Loan Repayment
10.00
D. S. C. R.
1.81
Project Report of M/s. Revansiddh Industries, prepared by CA Shreyans Tejpal Shah.
PROFITABILITY STATEMENT ₹ in Lacs YEAR
I
II
III
IV
V
80% 108.00
85% 114.75
85% 117.05
90% 123.93
90% 126.41
5.40
5.74
5.91
6.26
6.44
51.66
54.89
57.63
61.02
64.07
Other Material Exps
3.60
3.83
3.94
4.17
4.30
Electricity
3.20
3.39
3.50
3.70
3.81
Repair & Maintenance
3.40
3.61
3.68
3.90
3.98
Depreciation
9.20
7.68
6.43
5.40
4.56
Total -->
76.46
79.14
81.10
84.46
87.17
31.55
35.61
35.95
39.47
39.24
[-] Interest on T. L.
6.88
5.50
4.13
2.75
1.38
Interest on C. C.
1.65
1.65
1.65
1.65
1.65
n Exps
2.40
2.57
2.75
2.94
3.15
10.93
9.72
8.52
7.34
6.17
20.62
25.89
27.43
32.13
33.07
6.19
7.77
8.23
9.64
9.92
Net profit Aft. I. Tax prov
14.43
18.13
19.20
22.49
23.15
Added Back Depreciation
9.20
7.68
6.43
5.40
4.56
Cash Accruals
23.63
25.81
25.63
27.90
27.71
Loan Repayment
10.00
10.00
10.00
10.00
10.00
1.81
2.02
2.11
2.40
2.56
Utilization % Sales [-] Consumables purchases Labour
Gross Profit
Net profit Before I. Tax prov. [-] I.Tax provision.
D.S.C.R. Average D.S.C.R.
2.18
Project Report of M/s. Revansiddh Industries, prepared by CA Shreyans Tejpal Shah.
INTEREST SCHEDULE : ₹ in Lacs PARTICULARS
T.L.
INTEREST
C. C.
13.75% BALANCE
50.00
[-] Ist Yr. Installment
10.00
BALANCE
40.00
[-] IIst Yr. Installment
10.00
BALANCE
30.00
[-] IIIrd Yr. Installment
10.00
BALANCE
20.00
[-] IVth Yr. Installment
10.00
BALANCE
10.00
[-] Vth Yr. Installment
10.00
BALANCE
0.00
INTEREST 13.75%
12.00 6.88
0.00
1.65
12.00 5.50
0.00
1.65
12.00 4.13
0.00
1.65
12.00 2.75
0.00
1.65
12.00 1.38
0.00 12.00
Project Report of M/s. Revansiddh Industries, prepared by CA Shreyans Tejpal Shah.
1.65
DEPRECIATION SCHEDULE ₹ in Lacs PATICULARS
Machinery
Building
20%
10%
30.00
32.00
6.00
3.20
24.00
28.80
4.80
2.88
19.20
25.92
3.84
2.59
15.36
23.33
3.07
2.33
12.29
21.00
[-] 5th Yr. Depr.
2.46
2.10
WDV
9.83
18.90
OP.BALANCE [-] 1st YR. Depr. W.D.V. [-] 2nd Yr. Depr.
[-] 3rd YR. Depr. W.D.V. [-] 4th Yr. Depr. WDV
Project Report of M/s. Revansiddh Industries, prepared by CA Shreyans Tejpal Shah.
Total Depr.
9.20
7.68
6.43
5.40
4.56
CASH / FUNDS FLOW STATEMENT ₹ in Lacs I
II
III
IV
V
Cash Accruals
23.63
25.81
25.63
27.90
27.71
Increas in Capital
21.37
0.00
0.00
0.00
0.00
Increase in Term Loan
50.00
0.00
0.00
0.00
0.00
Increase in Bank Borrowing
12.00
0.00
0.00
0.00
0.00
Unsecured
0.00
0.00
0.00
0.00
0.00
Depreciation
0.00
0.00
0.00
0.00
0.00
Others (specify)
0.00
0.00
0.00
0.00
0.00
107.01
25.81
25.63
27.90
27.71
0.00
0.00
0.00
0.00
0.00
Increase in Capital Expenditure
68.00
0.00
0.00
20.00
50.00
Decrease in Term Loan
10.00
10.00
10.00
10.00
10.00
Increase in Working Capital
15.37
2.00
2.00
2.00
2.00
0.00
0.00
0.00
0.00
0.00
93.37
12.00
12.00
32.00
62.00
Opening Balance
0.00
13.63
27.44
41.07
36.97
Net Surplus (A-B)
13.63
13.81
13.63
-4.10
-34.29
Closing Balance
13.63
27.44
41.07
36.97
2.67
Sources of Funds
Total Application (A) Dispossion of Funds Pre-op Expenses
Others (specify)
Total Dispossion (B)
Project Report of M/s. Revansiddh Industries, prepared by CA Shreyans Tejpal Shah.
PROJECT BALANCE SHEET ₹ in Lacs I
II
III
IV
V
Capital
21.37
21.37
21.37
21.37
21.37
Reserve & Surplus
14.43
32.56
51.76
74.25
97.40
Unsecured
0.00
0.00
0.00
0.00
0.00
Term Loans
40.00
30.00
20.00
10.00
0.00
Bank Borrowing for W.C.
12.00
12.00
12.00
12.00
12.00
87.81
95.93
105.13
117.62
130.77
Gross Block
68.00
68.00
68.00
68.00
68.00
Depreciation
9.20
16.88
23.31
28.72
33.27
58.80
51.12
44.69
39.28
34.73
0.00
0.00
0.00
20.00
70.00
Current Assets
15.37
17.37
19.37
21.37
23.37
Cash & Bank balance
13.63
27.44
41.07
36.97
2.67
87.81
95.93
105.13
117.62
130.77
0.00
0.00
0.00
0.00
0.00
Liabilities
Total Assets :
Net Block Capital WIP
Note: Addition in the gross block denotes proposed expansion in future.
Project Report of M/s. Revansiddh Industries, prepared by CA Shreyans Tejpal Shah.
BREAK EVEN POINT ANALYSIS ₹ in Lacs I
II
III
IV
V
Depreciation
9.20
7.68
6.43
5.40
4.56
Interest on term loan
6.88
5.50
4.13
2.75
1.38
10.33
10.98
11.53
12.20
12.81
7.52
8.00
8.30
8.81
9.14
33.93
32.16
30.38
29.17
27.88
Raw Material & Consumables
5.40
5.74
5.91
6.26
6.44
Power & Fuel
3.20
3.39
3.50
3.70
3.81
41.33
43.91
46.11
48.82
51.26
1.88
2.00
2.07
2.20
2.28
51.80
55.04
57.59
60.98
63.80
56.20
59.71
59.46
62.95
62.61
0.52
0.52
0.51
0.51
0.50
65.20
61.81
59.81
57.43
56.30
60.37%
53.87%
51.10%
46.34%
44.54%
Fixed Costs
Wages / Salaries : Fixed : 20 % Utilities : Fixed : 20 %
Variable Costs
Salaries & Wages : Variable : 80% Utilities : Variable : 80%
Contribution P/V ratio (contribution to sales) Break even sales ₹ Lacs Break Even %
Project Report of M/s. Revansiddh Industries, prepared by CA Shreyans Tejpal Shah.
READYMADE GARMENTS M/S. REVANSIDDHA INDUSTRIES
-: Prepared by:-
SHREYANS TEJPAL SHAH Chartered ants
127/2, Rockel Lane, Vakharbhag, Sangli Tel: (0233) 2623625, 2622536
HIGHLIGHTS OF THE PROJECT
1.
Name of the proprietor
: MRS. PI PANDURANG GAVADE
2.
Proposed Location
: Plot No. B – 21, MIDC Jath, Dist. Sangli.
3.
Constitution
: Proprietorship, M/s. Revansiddha Industries
4.
Nature of Activity
: Readymade Garments Manufacturing
5.
Status
: Land in Possession
6.
Cost of Project
: ₹ 54.00 Lacs
7.
Means of Finance
: Capital ₹
8.
Education & Experience
14.00 Lacs
Bank Loan ₹
40.00 Lacs
Total ₹
54.00 Lacs
: B. A. & Diploma in Fashion Deg Experience of 1 year as trainer in Fashion Deg Institute.
Project Report of M/s. Revansiddha Industries, prepared by CA Shreyans Tejpal Shah.
PROJECT REPORT OF READYMADE GARMENTS M/S. REVANSIDDHA INDUSTRIES _________________________________________________________________________ PREFACE: Readymade garment industry has occupied a unique place in the industrial scenario of our country by generating substantial export earnings and creating lot of employment. Its contribution to industrial production, employment and export earnings are very significant. This industry provides one of the primary necessities of life. The employment provided by it is a source of livelihood for millions of people. It also provides maximum employment with minimum capital investment. Since this industry is highly labor-intensive, it is ideally suited to Indian condition. This project report is prepared for the manufacture of gents shirts, gents tros as they find vast acceptance in local and international markets. Such establishments can be easily set up by any person having the knowledge of cutting and stitching operations. DEMAND AND SUPPLY SCENARIO: Readymade garments are the choice of urban people. It is also gaining vast acceptance in semi urban and rural areas. The huge charges made by tailors and delays in delivery have made people to switch over to readymade garments. In domestic market and export market, it has made spectacular progress in the last decade. This industry is becoming very vibrant and lot of foreign investment pouring in this industry because of low risk and high earning nature of this industry. As these products are fashion oriented, entrepreneurs should always keep in mind the changing fashion styles. Considering its advantageous position, it is assumed that there will be no constraint in marketing of gents readymade garments.
Project Report of M/s. Revansiddha Industries, prepared by CA Shreyans Tejpal Shah.
CONSTITUTION OF THE FIRM: This project is proposed as a Proprietorship of Mrs. Pi Pandurang Gavade in the trade name as M/s. Revansiddha Industries. She is a dynamic woman entrepreneur and personally shall be looking after the business. Initially she has decided to start the business as a job-work activity. In the later stages, gradually, the business shall be shifted to own manufacturing.
REGISTRATION DETAILS: Being a proprietorship firm, there is no registration required regarding the constitution of the firm. Other statutory registrations such as VAT, etc. shall be taken afterwards. UNIT REGISTRATION DETAILS: This project shall be a small scale unit as per GR of Govt. of Maharashtra and MSME Act. Registration under MSME Act as a SSI is in the process and shall be procured soon. LAND & BUILDING: It has been decided to start this project in own land at Plot No. B – 21, MIDC Jath, Dist. Sangli. The said location is well connected with transportation facilities as it is located very nearby to the highway. So no problem of transportation and this location is situated at “D+” Zone as per notification by Government, making the project eligible for the Assistance Subsidy from the State Government as well as Central Government. The building required for the project is to be constructed adhering to the guidelines of MIDC and as per the required specifications of the project. The required building shall easure to approx. 4000 Sq. Ft., and total cost of Land & Building shall be approx. ₹ 32 Lacs. MACHINERY: This project is basically skill based and labour oriented business. The required machinery can be enumerated as follows: -
Project Report of M/s. Revansiddha Industries, prepared by CA Shreyans Tejpal Shah.
1. Sewing Machines 2. Industrial Garment Press / Iron 3. Cutting Machines 4. Other Tools 5. Deg & Embroidery Machine (if needed) 6. Computer and printer.
PROJECT COST DETAILS: ₹ In Lacs A. Land and Building
32.00
B. Plant & Machinery
30.00
C. Electrification & Installation
03.00
D. Misc. & Other Assets
03.00
Total
68.00
MEANS OF FINANCE: This project shall be financed in following manner: ₹ In Lacs A. Capital contribution
18.00
B. Bank Term Loan
50.00
Total
68.00
TECHNICAL ASPECTS: METHOD OF PRODUCTION: The process includes the following steps: PROCUREMENT OF FABRIC: Dyed/bleached/printed cotton/synthetic fabrics as per demand are to be procured from the open market. The fabric will be checked by laying on the inspection table against light before
Project Report of M/s. Revansiddha Industries, prepared by CA Shreyans Tejpal Shah.
cutting so that unevenness in color/shade or any other fault, if any visible in the fabric are eliminated. CUTTING AND STITCHING: The checked fabric is placed on the cutting table in layers and then the different parts of the respective garments are marked by a chalk as per different sizes. Cutting is carried out by the cutting machine. Stitching is carried out for individual portion of the garments by skilled workers with the help of over lock, lock stitch machines etc. SINGEING, CHECKING, PRESSING AND PACKING: All garments are charged into singeing machine containing mild detergent and enzymes and singeed for 4 hours in order to eliminate dirt and stains acquired during the manufacturing process. After singeing, the garments are hydro extracted to eliminate excess water and after this, these garments are dried in tumbler dryer. End checking is done before pressing and packing on the checking table so that any fault in the piece may be eliminated and protruding threads eliminated. The individual pieces are pressed by steam presses to eliminate any wrinkle marks and packed in the carton boxes. SPECIFICATIONS AND STANDARD: The quality of garments primarily depends on quality of fabric used. Therefore, care must be taken while purchasing fabrics to ensure good color, fastness properties, uniformity in shade etc. Generally garments are made as per customer’s specification in respect of size, design and fashion. EFFECTS ON ECO SYSTEM: The method of production does not generate pollution. The usage water is limited only towards the domestic purposes and drinking. The effluent generated out of the same, shall be utilized for gardening purposes. POWER SAVING: Maximum care should be taken while selecting the machinery and other electrical equipment so as to ensure minimum power consumption. Project Report of M/s. Revansiddha Industries, prepared by CA Shreyans Tejpal Shah.
WASTE AND EFFLUENT: There is no chemical or water processes involved in this unit. Thus, there will be no effluent or wastage generation. Water is to be used for domestic purposes only and the wastage of water shall be utilized for gardening purposes. PROJECT HYPOTHESIS (ASSUMPTIONS) 1. This project is based on 300 working days in a year. 2. This industry is labour intensive, thus working efficiency is considered at 80% in the initial stages. 3. Costs of machinery and equipment/material mentioned refer to a specific make and approximately to those prevailing at the time of preparation of this project. 4. Installation and electrification cost is taken as a percentage of cost of machinery and electrification. 5. Non-refundable deposits, project report cost, trial production, security deposits with Electricity Board are taken under preoperative expenses. 6. Depreciation has been considered: (a) On Building @ 10% (b) On plant and machinery @ 20% TIME SCHEDULEP: Implementation period in months for executing this project in stage-wise is given below: Note: Considering that some of the above activities may be overlapping, the project implementation will take a total period of six months approximately for starting the production. Sr. No.
Activity
Period
1.
Selection of site/working shed / Application
1 Week
2.
Acquisition of Plot of Land
2 months
3.
Preparation of feasibility report
1 month
4.
Arrangement of finance (Term loan and
Project Report of M/s. Revansiddha Industries, prepared by CA Shreyans Tejpal Shah.
Working capital)
1 month
5.
Construction of required building
6 months.
6.
Procurement of machinery and equipment
1 month
7.
Plant erection and electrification
2 weeks
8.
Arrangement of raw material including Packaging material etc.
1 month
9.
Recruitment of manpower
1 month
10.
Selection of market channel
1 month.
11.
Miscellaneous works like power/water Connection etc.
2 months.
FINANCIAL ANALYSIS: Attached separately.
*****
Project Report of M/s. Revansiddha Industries, prepared by CA Shreyans Tejpal Shah.
PROJECT REPORT OF GARMENTS MANUFACTURING
COST OF PROJECT
₹ in Lacs
Land & Building
32.00
Plant & Machinery
30.00
Elect Installation
3.00
Other Assets
3.00 68.00
MEANS OF FINANCE : Promoters
18.00
Bank T. L.
50.00 68.00
Working Capital Requirement
₹ in Lacs
Stock in Trade (Work in Progress)
6.37
Debtors / Receivables
9.00 15.37 Bank CC
12.00
Margin
3.37
Project Report of M/s. Revansiddh Industries, prepared by CA Shreyans Tejpal Shah.
DEPRECIATION : Building
10%
3.20
Machinery
20%
6.00 9.20
CAPACITY Products
Multiple Products
Number of Machines
50
Installed Capacity (17 Shirts per m/c per shift)
750 Nos / Day
Number of working days
300
Utilization 1 st year
80%
Annual production
180000 Nos
Job-Work Charges
Qty/Nos
Rate ₹
Total
180000.00
60.00
108.00 108.00
INTEREST : Term Loan
13.75%
50.00 Lacs
6.88
Cash Credit
13.75%
12.00 Lacs
1.65 6.88
Project Report of M/s. Revansiddh Industries, prepared by CA Shreyans Tejpal Shah.
Labour Qty
Salary
Month
Rs. In Lacs
Official
2
6500.00
12
1.56
Marketing
2
6500.00
12
1.56
Supervisor
6
7000.00
12
5.04
Skilled
55
5500.00
12
36.30
Unskilled
15
4000.00
12
7.20 51.66
Power / Electricity Load Connected
30.00 KW
Maximum Demand
30.00 KW
Consumption for 12 Hrs
150.00 Units
Consumption Per Year Total Cost
45000.00 Units @ ₹ 7.10
3.20 ₹ Lacs
Project Report of M/s. Revansiddh Industries, prepared by CA Shreyans Tejpal Shah.
PROFITABILITY STATEMENTS ₹ in Lacs Jobwork Charges [-] Consumables purchases @ 5% Labour
108.00 5.40 51.66
Mfg. Exps @ ₹ 30000 p.m.
3.60
Electricity
3.20
Repair & Maintenance @ 5 %
3.40
Depreciation
9.20 76.46
GROSS PROFIT
31.55
[-] Interest on T. L.
6.88
Interest on C.C.
1.65
n Exps
2.40 10.93
Net Profit Bef. Tax [-] I. Tax provision @
76.46
10.93 20.62
30%
Net Profit After I.Tax prov.
6.19 14.43
Add Depreciation
9.20
CASH ACCRUALS
23.63
Loan Repayment
10.00
D. S. C. R.
1.81
Project Report of M/s. Revansiddh Industries, prepared by CA Shreyans Tejpal Shah.
PROFITABILITY STATEMENT ₹ in Lacs YEAR
I
II
III
IV
V
80% 108.00
85% 114.75
85% 117.05
90% 123.93
90% 126.41
5.40
5.74
5.91
6.26
6.44
51.66
54.89
57.63
61.02
64.07
Other Material Exps
3.60
3.83
3.94
4.17
4.30
Electricity
3.20
3.39
3.50
3.70
3.81
Repair & Maintenance
3.40
3.61
3.68
3.90
3.98
Depreciation
9.20
7.68
6.43
5.40
4.56
Total -->
76.46
79.14
81.10
84.46
87.17
31.55
35.61
35.95
39.47
39.24
[-] Interest on T. L.
6.88
5.50
4.13
2.75
1.38
Interest on C. C.
1.65
1.65
1.65
1.65
1.65
n Exps
2.40
2.57
2.75
2.94
3.15
10.93
9.72
8.52
7.34
6.17
20.62
25.89
27.43
32.13
33.07
6.19
7.77
8.23
9.64
9.92
Net profit Aft. I. Tax prov
14.43
18.13
19.20
22.49
23.15
Added Back Depreciation
9.20
7.68
6.43
5.40
4.56
Cash Accruals
23.63
25.81
25.63
27.90
27.71
Loan Repayment
10.00
10.00
10.00
10.00
10.00
1.81
2.02
2.11
2.40
2.56
Utilization % Sales [-] Consumables purchases Labour
Gross Profit
Net profit Before I. Tax prov. [-] I.Tax provision.
D.S.C.R. Average D.S.C.R.
2.18
Project Report of M/s. Revansiddh Industries, prepared by CA Shreyans Tejpal Shah.
INTEREST SCHEDULE : ₹ in Lacs PARTICULARS
T.L.
INTEREST
C. C.
13.75% BALANCE
50.00
[-] Ist Yr. Installment
10.00
BALANCE
40.00
[-] IIst Yr. Installment
10.00
BALANCE
30.00
[-] IIIrd Yr. Installment
10.00
BALANCE
20.00
[-] IVth Yr. Installment
10.00
BALANCE
10.00
[-] Vth Yr. Installment
10.00
BALANCE
0.00
INTEREST 13.75%
12.00 6.88
0.00
1.65
12.00 5.50
0.00
1.65
12.00 4.13
0.00
1.65
12.00 2.75
0.00
1.65
12.00 1.38
0.00 12.00
Project Report of M/s. Revansiddh Industries, prepared by CA Shreyans Tejpal Shah.
1.65
DEPRECIATION SCHEDULE ₹ in Lacs PATICULARS
Machinery
Building
20%
10%
30.00
32.00
6.00
3.20
24.00
28.80
4.80
2.88
19.20
25.92
3.84
2.59
15.36
23.33
3.07
2.33
12.29
21.00
[-] 5th Yr. Depr.
2.46
2.10
WDV
9.83
18.90
OP.BALANCE [-] 1st YR. Depr. W.D.V. [-] 2nd Yr. Depr.
[-] 3rd YR. Depr. W.D.V. [-] 4th Yr. Depr. WDV
Project Report of M/s. Revansiddh Industries, prepared by CA Shreyans Tejpal Shah.
Total Depr.
9.20
7.68
6.43
5.40
4.56
CASH / FUNDS FLOW STATEMENT ₹ in Lacs I
II
III
IV
V
Cash Accruals
23.63
25.81
25.63
27.90
27.71
Increas in Capital
21.37
0.00
0.00
0.00
0.00
Increase in Term Loan
50.00
0.00
0.00
0.00
0.00
Increase in Bank Borrowing
12.00
0.00
0.00
0.00
0.00
Unsecured
0.00
0.00
0.00
0.00
0.00
Depreciation
0.00
0.00
0.00
0.00
0.00
Others (specify)
0.00
0.00
0.00
0.00
0.00
107.01
25.81
25.63
27.90
27.71
0.00
0.00
0.00
0.00
0.00
Increase in Capital Expenditure
68.00
0.00
0.00
20.00
50.00
Decrease in Term Loan
10.00
10.00
10.00
10.00
10.00
Increase in Working Capital
15.37
2.00
2.00
2.00
2.00
0.00
0.00
0.00
0.00
0.00
93.37
12.00
12.00
32.00
62.00
Opening Balance
0.00
13.63
27.44
41.07
36.97
Net Surplus (A-B)
13.63
13.81
13.63
-4.10
-34.29
Closing Balance
13.63
27.44
41.07
36.97
2.67
Sources of Funds
Total Application (A) Dispossion of Funds Pre-op Expenses
Others (specify)
Total Dispossion (B)
Project Report of M/s. Revansiddh Industries, prepared by CA Shreyans Tejpal Shah.
PROJECT BALANCE SHEET ₹ in Lacs I
II
III
IV
V
Capital
21.37
21.37
21.37
21.37
21.37
Reserve & Surplus
14.43
32.56
51.76
74.25
97.40
Unsecured
0.00
0.00
0.00
0.00
0.00
Term Loans
40.00
30.00
20.00
10.00
0.00
Bank Borrowing for W.C.
12.00
12.00
12.00
12.00
12.00
87.81
95.93
105.13
117.62
130.77
Gross Block
68.00
68.00
68.00
68.00
68.00
Depreciation
9.20
16.88
23.31
28.72
33.27
58.80
51.12
44.69
39.28
34.73
0.00
0.00
0.00
20.00
70.00
Current Assets
15.37
17.37
19.37
21.37
23.37
Cash & Bank balance
13.63
27.44
41.07
36.97
2.67
87.81
95.93
105.13
117.62
130.77
0.00
0.00
0.00
0.00
0.00
Liabilities
Total Assets :
Net Block Capital WIP
Note: Addition in the gross block denotes proposed expansion in future.
Project Report of M/s. Revansiddh Industries, prepared by CA Shreyans Tejpal Shah.
BREAK EVEN POINT ANALYSIS ₹ in Lacs I
II
III
IV
V
Depreciation
9.20
7.68
6.43
5.40
4.56
Interest on term loan
6.88
5.50
4.13
2.75
1.38
10.33
10.98
11.53
12.20
12.81
7.52
8.00
8.30
8.81
9.14
33.93
32.16
30.38
29.17
27.88
Raw Material & Consumables
5.40
5.74
5.91
6.26
6.44
Power & Fuel
3.20
3.39
3.50
3.70
3.81
41.33
43.91
46.11
48.82
51.26
1.88
2.00
2.07
2.20
2.28
51.80
55.04
57.59
60.98
63.80
56.20
59.71
59.46
62.95
62.61
0.52
0.52
0.51
0.51
0.50
65.20
61.81
59.81
57.43
56.30
60.37%
53.87%
51.10%
46.34%
44.54%
Fixed Costs
Wages / Salaries : Fixed : 20 % Utilities : Fixed : 20 %
Variable Costs
Salaries & Wages : Variable : 80% Utilities : Variable : 80%
Contribution P/V ratio (contribution to sales) Break even sales ₹ Lacs Break Even %
Project Report of M/s. Revansiddh Industries, prepared by CA Shreyans Tejpal Shah.
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