1
Prepared by Indian Institute of Entrepreneurship
SELECTED PROJECT REPORT ON
SELF EMPLOYMENT PROGRAMME
(INDIVIDUAL) UNDER (NULM)
FOR
Assam Urban Livelihood Mission
(ASULMS), Government of Assam
Prepared by: Indian Institute of Entrepreneurship (IIE),
Lalmati, Guwahati, Near NH – 37.
Pin- 7781039.
Assam.
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Prepared by Indian Institute of Entrepreneurship
CONTENTS
Sl
No.
Topics
Page No
1
Beauty Parlour / Saloon
3 – 16
2
E - Rickshaw
17 – 22
3
Grocery Shop
23 – 31
4
Retail Stationery Shop
32 - 41
5
Small Retail Garment Shop
42 – 52
6
Tailor Shop
53 – 63
7
Tea Stall
64 – 74
8
Two wheeler Motor Garage
75 – 83
9
Weaving Unit
84 – 96
10
Fast Food Unit
97 - 110
3
Prepared by Indian Institute of Entrepreneurship
Project Report on
BEAUTY PARLOUR / SALOON
4
Prepared by Indian Institute of Entrepreneurship
PROJECT REPORT ON BEAUTY PARLOUR/SALOON under SEP-I
HIGHLIGHT OF THE PROJECT
Name of the Unit
As per Adhar of MSME
Constitution
Proprietorship
Name of the Promoter
Trainee with Skill Knowledge on
respective Project
Proposed Location
Urban/ Semi Urban
Total Project Investment
Fixed Capital
Rs. 1, 25,500.00
Working Capital
Rs. 74,500.00
Total
Rs. 2, 00,000.00
Means of Finance
Promoters’ Contribution @ 25%
Rs. 50,000.00
Bank Loan @ 75%
Rs.1, 50,000.00
Total
Rs. 2, 00,000.00
FINANCIAL ANYLASIS
Loan Repayment Period
05 Years
Percentage of Profit on Total Investment:
92.56 %
Percentage of Profit on Total Sales
15.52%
BEP (on Sales)
1
st
year
2
nd
year
3
rd
year
4
th
year
5
th
year
57.89%
49.55%
46.47%
42.03%
40.87%
Projected Yearly Profit
(Rs, 000)
1 Year
02 Year
03 Year
04 Year
05 Year
99.43
142.83
185.83
228.55
233.84
Average DSCR
1:4.04
Debt Equity Ratio:
3:1
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1. INTRODUCTION:
The urge to look beautiful has always been there in women. But recent trend is such that men
are also becoming conscious about their look. Earlier natural herbs were used to look
beautiful but with modernization, came make up and beauty parlour culture. Beauty parlours
have not only given women a self-employment opportunity but also have satisfied their urge
to look beautiful. Though men and women have exclusive beauty parlours, these can be
established under one roof but with different segments altogether.
The clientele of the beauty parlour would include two divisions, one for men and the other for
women. Women clientele would include young girls, working women and housewives who
go to beauty parlour at least once a month. Bridal make-up and personalized services for
special occasions also enhance business of beauty parlours. Men clientele would include
young boys and working men. Besides training other women in the profession could also be
yet another source of income.
2. BASIS AND PRESUMPTION:
The unit will remain open for 8 hours a day for 300 working days in a calendar year.
The price of raw materials and equipments is as per present market price.
Non-refundable deposits, feasibility study fees, trial production, establishment
expenses are considered under pre-operative expenses.
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Prepared by Indian Institute of Entrepreneurship
3. PROJECT COST ESTIMATES & MEANS OF FINANCE:
FIXED CAPITAL
(Land & Building): Rental basis
Shed of 1200 sq.ft area will be served the purposes, a monthly rent of which would be
approximately Rs. 5,000.00.
Equipments:
SlNo
Particulars
No.
Cost (Rs.)
Amount (Rs.)
1
Saloon Chair
4
3,000.00
12,000.00
2
Hydro Dryer
1
6,000.00
6,000.00
4
Massage Machine
1
5,000.00
5000
6
Mirrors
4
2,000.00
8,000.00
8
Shampoo station chairs
2
6,500.00
13,000.00
11
Wax Heater
3
1,000.00
12,000.00
12
Hair Dryer
2
1,500.00
3,000.00
13
Cutting Scissor
5
500.00
2,500.00
16
Facial Bed
2
6,000.00
12000.00
17
Cutting Comb
6
1,500.00
9,000.00
18
Brushes
6
400.00
2,400.00
19
Facial Gown
3
1,000.00
3,000.00
20
Crochet
4
500.00
2,000.00
21
Others accessories
N/A
N/A
5,000.00
TOTAL
94,900.00
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Other Fixed Assets:
SlNo
Particulars
Amount (Rs.)
1.
Electrification
15,000.00
2.
Office Furniture
6,000.00
3.
Office Equipments
5,000.00
TOTAL
Rs.26, 000.00
Preliminary & Pre-operative Expenses:
SlNo
Particulars
Amount (Rs.)
1.
Market survey
1,000.00
2.
Travelling & Conveyance
1,000.00
3.
Misc. Expenses/ Legal Expenses
3,000.00
TOTAL
Rs.5, 000.00
Total Fixed Capital:
SlNo
Particulars
Amount (Rs.)
1.
Machines & Equipments
94,900.00
2.
Fixed Assets
26,000.00
3.
Preliminary & Pre-operative Expenses
5,000.00
TOTAL
1, 25,500.00
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WORKING CAPITAL:
Raw Material & Consumables (Per Month):
Sl.No.
Particulars
Qty.
Amount (Rs.)
1.
Different types of Cosmetics
LS
7,000.00
2.
Make-Up Kit
2
8,000.00
3.
Hair Colour
10
2,000.00
4.
Bleaching Materials
LS
1,500.00
5.
Wax Materials
LS
2,000.00
6.
Hair Crème
LS
2,000.00
7.
Massage Oil
LS
2,000.00
8.
Different Facials
LS
3,000.00
9.
Perming Gel
LS
2,000.00
10.
Different Shaving Cream
LS
2,000.00
11.
Different Hair Gel
LS
2,000.00
12.
Different Henna Powder
LS
2,000.00
13.
Different Shampoos
LS
2,000.00
14.
Others
LS
2,500.00
TOTAL
Rs.40, 000.00
Manpower (Per Month):
Sl no
Personnel
No.
Salary
Amount (Rs.)
1.
Supervisor (Self)
1
4,500.00
4,500.00
2.
Beautician (Self)
1
6,000.00
6,000.00
3.
Trainee
1
4,000.00
4,000.00
4.
Assistant (Trainee)
1
2,500.00
2,500.00
TOTAL
Rs.17, 000.00
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Utilities (Per Month):
Sl no
Particulars
Amount (Rs.)
1.
Electricity
2,000.00
2.
Water
500.00
TOTAL
Rs.2, 500.00
Administrative Expense (Per Month):
Sl no
Particulars
Amount (Rs.)
1.
Rent
5,000.00
2.
Postage & Stationery
1,000.00
3.
Insurance
2,000.00
4.
Repair & Maintenance
1,000.00
5.
Contingency
2,000.00
6.
Misc. Expenses
2,000.00
TOTAL
Rs.13, 000.00
Total Working Capital:
Sl no
Particulars
Amount (Rs.)
1.
Raw Material
36,500.00
2.
Manpower
17,000.00
3.
Utilities
2,500.00
4.
Administrative Expenses
13,000.00
TOTAL
Rs.69, 000.00
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Working Capital Required:
Slno
Particulars
Stock Period
Amount (Rs.)
1.
Raw Material
15 days
24,000.00
2.
Operating Expenses
1 Month
32,500.00
3.
Bills Receivables
05 Days
18,000.00
TOTAL
74,500.00
SL
Total Project Cost: Amount (Rs)
A
Fixed Capital
1, 25,500.00
B
Working Capital Requirement
74,500.00
Total:
2, 00,000.00
Means of Finance: (Debt Equity: 3:1)
Under SEP- I
Amount ( Rs)
1
Promoter’s Contribution (25%)
50,000.00
2
Bank Loan under (75%)
1, 50,000.00
TOTAL
2, 00,000.00
(Interest subsidy @ 7% pa on loan amount under National Urban Livelihoods Mission
(NULM)
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ANNEXURE - I
SALES REALIZATION
First Year:
Slno
Particulars
Number of
persons (PM)
Rate
Amount (Rs.)
(PM)
1.
Threading
30
100.00
3,000.00
2.
Manicure
30
100.00
3,000.00
3.
Pedicure
25
100.00
2,500.00
4.
Head Massage
30
120.00
3,600.00
5.
Hair Bleaching
30
150.00
4,500.00
6.
Arm Bleaching
10
200.00
2000.00
7.
Face Bleaching
30
200.00
6000.00
8.
Stomach Bleaching
05
150.00
750.00
9.
Waxing
10
300.00
3,000.00
10.
Facial
20
450.00
9,000.00
11.
Hair Style
25
150.00
7,500.00
12.
Synthetic Dye
10
100.00
1,000.00
13.
Bridal make up
05
5000.00
25,000.00
14.
Hair Cutting
40
100.00
4,000.00
16.
Make up
4
2000.00
8,000.00
TOTAL
82,850.00
Annual Sales 9, 94,200.00
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ANNEXURE - II
LOAN REPAYMENT SCHEDULE @12 % ANNUALLY
(Rs. In Thousands)
ITEM
01
02
03
04
05
Opening Balance
150.00
120.00
90.00
60.00
30.00
Repayment Principal
30.00
30.00
30.00
30.00
30.00
Interest @12% PA
18.00
14.40
10.80
7.20
3.60
Closing Balance
120.00
90.00
60.00
30.00
-
ANNEXURE-III
DEPRECIATION SCHEDULE @ 15 %
(Rs. In Thousands)
WRITTEN DOWN VALUE METHOD:
Year
Total Fixed Asset
Amount
(Rs.)
WDB at the beginning of the year
125.25
125.25
Depreciation
18.75
18.75
First Year WDB
106.50
106.50
Depreciation
15.98
15.98
Second Year WDB
90.52
90.52
Depreciation
13.58
13.58
Third Year WDB
76.94
76.94
Depreciation
11.54
11.54
Fourth Year WDB
65.40
65.40
Depreciation
9.80
9.80
Fifth Year WDB
55.60
55.60
Depreciation
8.34
8.34
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ANNEXURE-IV
COST & PROFITABILITY ESTIMATES:
(Rs. In Thousands)
Item/Year
1
2
3
4
5
Utilization
50%
55%
60%
65%
65%
Sales Realization
994.00
1093.00
1193.00
1292.00
1292.00
Expenditure
Raw Material
438.00
482.00
526.00
569.00
569.00
Operating Expense
390.00
405.00
421.00
437.00
437.00
Cost of Goods Sold
828.00
887.00
947.00
1006.00
1006.00
Operating Profit
166.00
206.00
246.00
286.00
286.00
Depreciation
18.75
15.98
13.58
11.54
9.80
Interest
18.00
14.40
10.80
7.20
3.60
PAID
129.25
175.62
221.62
267.26
272.60
Marketing Expense @3% on
Sales
29.82
32.79
35.79
38.76
38.76
Net Profit
99.43
142.83
185.83
228.50
233.84
Cash Inflow
118.18
158.81
199.41
240.04
243.64
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ANNEXURE-V
DEBT-SERVICE COVERAGE RATIO:
(Rs. In Thousands)
Year
01
02
03
04
05
A. Income
Net Profit
99.43
142.83
185.83
228.50
233.84
Depreciation
18.75
15.98
13.58
11.54
9.80
Interest
18.00
14.40
10.80
7.20
3.60
Total
104.12
138.14
172.14
205.16
205.16
B. Commitment
Principal
30.00
30.00
30.00
30.00
30.00
Interest
18.00
14.40
10.80
7.20
3.60
Total
48.00
44.40
40.80
37.20
33.60
DSCR
2.17
3.11
4.21
5.08
5.63
Average DSCR= 1:4.04
ANNEXURE-VI
CALCULATION OF SIMPLE PAY BACK PERIOD
(In Rs.Thousand)
Year
Cash Outflow
Cash Inflow
Cumulative C.I
00
200.00
-
-
01
-
86.12
86.12
02
-
123.74
209.86
03
-
161.34
371.20
04
-
197.96
569.16
05
-
201.56
770.72
Simple Payback Period of the project is 2.0Years
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ANNEXURE-VII
BREAK EVEN POINT
(Based on 3
th
Year of operation)
(Rs. In Thousands)
Sl
Year
1
2
3
4
5
Capacity
50
55
60
65
65
A. Sales
994
1093
1193
1292
1292
B. Variable Cost
(i)Raw materials
438
482
526
569
569
(ii)Variable Overheads
234
243
253
262
262
Total (B)
672
725
779
831
831
C. Contribution:
322
368
414
461
461
D. Fixed Cost
(i)Depreciation
18.75
15.98
13.58
11.54
9.80
(ii) Interest
18.00
14.40
10.80
7.2
3.6
(iii) Fixed Overheads
140.00
152.00
168.00
175.00
175.00
Total (D)
176.75
182.38
192.38
193.75
188.4
BEP
57.89%
49.55 %
46.47%
42.03%
40.87 %
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ANNEXURE-VIII
PERCENTAGE OF PROFIT
(Based on 3
rd
Year of Operation)
(Rs. In Thousands)
Net Profit X 100
On Total Sales = ---------------------------
Total Sales
185.13 X 100
= -----------------------------
1193.00
= 15.52 %
Net Profit X 100
2.) On Total Investment = ----------------------------
Total Investment
185.13 X 100
= ----------------------------
200.00
= 92.56 %
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Project Report on
E - RICKSHAW
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PROJECT REPORT ON E- RICKSHAW, under SEP-I
HIGHLIGHT OF THE PROJECT
Name of the Unit
-----------
Constitution
Proprietorship
Name of the Promoter
Trainee with Skill Knowledge on
respective Project ( Driving)
Proposed Location
Urban/ Semi Urban
Total Project Investment
Fixed Capital
Rs. 1, 63,000.00
Recurring Expenditures (One week)
Rs. 6,000.00
Total
Rs. 1, 69,000.00
Yearly Net Profit:
Rs. 1, 42,000.00
Means of Finance
Promoters’ Contribution @ 25%
Rs. 42,375.00
Bank Loan @ 75%
Rs.1, 27,125.00
Total
Rs. 1, 69,000.00
FINANCIAL ANYLASIS
Loan Repayment Period
04 Years
Percentage of Profit on Total Investment:
92.56 %
Percentage of Profit on Total Sales
15.52%
BEP (on Sales)
43.57%
Pay Back Period
1.2 Years
Debt Equity Ratio
3:1
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PROJET ON E- RICKSHAW
1. INTRODUCTION
The E-rickshaw is an important means of transportation contributing to the huge
percentage in public transport. With a need for a motorized system of transportation,
the rickshaw has evolved over the years. It has evolved from hand-pulled rickshaw to
electric rickshaw that is e-rickshaw. It is a cheap and environment-friendly source of
transport in the times of urbanization and when pollution rates are alarmingly high. E-
rickshaw is slowly becoming more popular in some cities in India. It can be referred
to as the best option for pocket-friendly transportation. Still, the e-vehicle market
share is less than 1 percent. Adding to this it has become a highly dependable mode of
communication in the years to come and has established itself as a lucrative
profession choice for people of rural India or people in cities belonging to the low-
income category. "Petrol and diesel are past , e-rickshaw is the future "Thus observing
the shift towards technology with more efficiency and being eco-friendly that is the
"e-technology " and with taking a relook on past, going with present, socio-economic
impact of e-rickshaw and giving a thought for future study of this paper is done in
different manner.
The Rickshaw is an important means of transportation contributing to the huge
percentage in public transport. With a need for motorized system of transportation the
rickshaw has evolved over the years. It has evolved from hand pulled rickshaw to
electric rickshaw that is e-rickshaw. It is a cheap and environment friendly
source of transport in the times of urbanization and when pollution rates are
alarmingly high. Study of socio-economic impact of e-rickshaw on the industry and
society is done which includes the present system, its structure and also the earning
data with some statistics is taken into consideration. Along with that environmental
impact are also given a view .Some of the government initiatives and laws are also
been highlighted- E rickshaw with its evolution resulting features with some issues
are also given weight age in the study. E-rickshaw is slowly becoming more popular
in some cities of India. It can be referred as a best option for a pocket friendly
transportation. Still e-vehicle market share is less than 1 percent. Adding to this it has
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become a highly dependable mode of communication in the years to come and has
established itself as a lucrative profession choice for people of rural India or people in
cities belonging to low income category. ”Petrol and diesel are past, e-rickshaw is the
future”Thus observing the shift towards technology with more efficiency and
being eco-friendly that is the “e- technology “ and with taking a relook on past ,
going with present, socio-economic impact of e-rickshaw.
2. TECHNICAL SPECIFICATION OF E-RICKSHAW
Parameters
Specifications
Motor type
DC series excitation brushless
Maximum overall dimensions
2.8m x 1m x 1.8m
Motor efficiency
Motor efficiency 85 % or above
Motor efficiency 85 % or above
4 passenger + driver
Max power of motor
2KW
Maximum speed (Unlade Condition)
25 km/hr
Maximum load of luggage
40 kg
Battery Voltage
48V Battery capacity
Battery capacity
80Ah
Charge voltage
220 V(50Hz)
Transmission Mode Gear Range
85 km(minimum)
Validity of e-rickshaw driving license
3 Years
Technical Parameters
Mean Values Motor Power
850-1950 W
Battery voltage
48V
Single battery capacity
80-120 Ah
Maximum load capacity
300-450 kg
Vehicle weight (approximate)
215 kg(with battery)
Maximum speed
33 kmph
Charging time
4-8 Hrs
Seating capacity
4+1 people
Ground clearance
180-300 mm
3. MARKET POTENTIALITY OF E RICKSHAW
Beginning from human-powered cycle rickshaws to auto-rickshaws, era is now
drifting towards most recent modification E-rickshaws. These battery operated three
wheelers are undoubtedly an integral part of transport. E-Rickshaws dovetail
beautifully as the last mile public conveyance with zero pollution in this entire
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equation. E-rickshaws approved by the Union Ministry of Road Transport and
Highways have a maximum width of 1 metre and maximum length of 2.8 meters and
are permitted to carry four passengers. Urbanization is at its peak in India. The
introduction of Metro in the last decade has made commuting easier for longer
distances. However, e-rickshaw can provide last mile connectivity to the passengers.
4. PROJECT COST ESTIMATES & MEANS OF FINANCE:
Capital Investment:
A
Fixed Capital;
i
Garage: ( 5 m X 5 m = 25Sq Mtrs. @ 700/- per sqm
17,500.00
ii
Cost of E-Rickshaw:
120,000.00
iii
Extra Battery
7,000.00
iv
Battery charging device
7,000.00
v
Price escalation, freight, contingencies, preoperative
@ 10% of cost of vehicle
12,000.00
vi
Total:
1,63,500.00
Manpower
i
Driver ( Self)
6000.00
Other Expenditures Per Month
i
Electricity Cost @ Rs2/- Per Km( daily on road
approximately 200 Km
Rs. 400/- daily X 25 days
10,000.00
ii
Repairing & Maintenance @ Rs..1/- Per Km X 25 days
* 200 Km daily
5,000.00
iii
Misc. Expenditures ( Parking fess, taxes, octopi)
2,000.00
Total:
17,000.00
Total Investment
A
Total Fixed Capital
1,63,000.00
B
recurring expenditures for one week
6,000.00
C
Other Expenditures
Total:
1,69,500.00
Sources of Finance
A
75% Loan from Financial
1,27,125.00
B
25% Own Contribution
42,375.00
Total:
1,69,500.00
(7% interest subsidy on loan amount under ANULM, Government) )
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REVENUE:
E - Rickshaw will operate mainly in urban, Semi Urban or in Rural area in short distance,
where other road public communication is not available, its operational area is minimum of
two to five Km. The proposed E-Ricksw’s operational area is 2-5 KM, hardly 5 to 10 hrs
Journey. Total daily on roads 30 KM
Daily 30 KM trip : Average passenger 03 per X Rs.10/-X 25 trip = Rs.1500/- per day
Monthly Revenue Rs.1500/- X 25 working days = Rs. 37,500.00
Yearly Revenue: Rs. 4,50,000.00
PROFITABILITY
Amount
A.
Yearly Revenue
4,50,000.00
B
Expenditures :
Manpower:
72,000.00
Electricity Cost
1,20,000.00
Maintenance
cost/Miscellaneous
84,000.00
Depreciation (straight line
method)
32,000.00
C
Total Expenditures
308,000.00
D
Gross Profit
2,26,000.00
E
Interest on Loan on Rs 1,27,
125/- @ 12 %
15,255.00
F
Net Profit
1,42,000.00
G
Cash Flow
1,74,000.00
FINANCIAL ANYLASIS
G
Payback period:
1.20 months
H
BEP
Fixed Cost
Fixed Overheads
62,400.00
Depreciation
32,000.00
Interest @ 12% Per annum
15,255.00
I
Total:
109655.00
Fixed Cost X100/Fixed Cost +
Net profit
Rs.109655 X100/Rs.251655.00
43.57% on
Sales
J
By Return of ( Yearly)
Rs,196875/-
((Interest subsidy @ 7% pa on loan amount under National Urban Livelihoods Mission
(NULM)
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Project Report on
GROCERY SHOP
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PROJECT ON GROCERY SHOP ( Under SEP-I)
HIGHLIGHT OF THE PROJECT
A.
NAME OF THE UNIT
M/S( As per Udyog Adhar Registration)
I
CONSTITUTION
PROPRIETORSHIP
II
PROMOTER
Trainee with Skill Knowledge on respective
Project
III
PROPOSED LOCATION
URBAN/SEMI URBAN AREA
B
TOTAL PROJCT
INVESTMENT
I
FIXED CAPITAL
Rs.41,5000.00
II
WORKING CAPITAL
Rs.1,58,500.00
III
TOTAL
Rs. 2,00,000.00
IV
MEANS OF FINANCE
V
PROMOTERS
CONTRIBUTION @25%
Rs. 50,000.00
VI
BANK LOAN @75%
Rs. 1,50,000.00
VI
TOTAL
Rs. 2,00,000.00
VII
PROJECTED YEARLY
PROFIT ( Rs. 000)
01 Year
02 Year
03 Year
04 Year
05 Year
55.42
84.26
113.10
142.94
146.54
BESIDES THE NULM, GOVT. OF ASSAM PROVIDED NECESSARY EQUITY
SUPPORT
C
FINANCIAL ANYLASIS
I
PERCENTAGE OF PROFIT ON SALES
5.79%
II
PERCENTAGE OF PROFIT ON TOTAL INVESTMENT
47.93%
III
BEP
31.29%
IV
AVERAGE DSCR
1:3.43
V
DEBT EQUITY RATIO
3:1
VI
LOAN REPAYMENT PERIOD
05 Years
25
Prepared by Indian Institute of Entrepreneurship
1. Introduction: The grocery business in India is distinctive in many ways, primarily
due to the diversity of consumers and the unique distribution models of the retail sector. From
mom and pop stores to giant supermarkets to online grocery stores, the grocery business in
India operates across channels. However, most of India's grocery business happens through
the unorganized sector, which mainly comprises of small stores, also known as kiranas. There
are over 12 million small stores in India and account for over 90% share of the Indian F&G
market, which is predicted to reach USD 810 Billion by 2020.
Indians have traditionally relied on mom and pop stores for their monthly food & grocery
needs. These stores have a personal connection with their customers and are well versed in
customer preferences, which in turn enables them to stock locally relevant products. Indians
prefer buying their monthly supplies from these local stores for various reasons such as
proximity, availability of credit, and the option to return/exchange products...
Globally, India is the sixth-largest grocery market and has a humongous potential for growth
due to the rising population as well as disposable incomes. The Indian grocery market, which
accounts for 69% of India's total retail market, offers plenty of opportunities to retailers.
Many retail players have tried tapping into this potential without substantial results. The local
retailers still the epicentre of Indian grocery business with 90% of distribution under its belt.
Even as retail giants battle against each other to become the consumer's habit when it comes
to buying grocery, the small stores have held their ground.
In Assam mainly in Urban area Grocery shop keep various stores to satisfied customers
according to their needs
2. Requirement of grocery items per week, per family members in urban areas
is as follows:
Sl
List
Quantity
Sugar
1 Kgs
Turmeric powder
100 grm
Jaggery
½ kgs
Rice
05 Kgs
High Quality Rice
1 kgs
Basmati Rice
1 kgs
flour
2 kgs
Maida
1 Kgs
Besan
½ Kgs
Tumeri
½ kgs
Red Chilly
¼ Kgs
Bread
1 pes
Packet items Biscuit
04 pkt
Butter
01 pes
Milk Packet
02 Litre
26
Prepared by Indian Institute of Entrepreneurship
3. Basis And Presumptions:
The project is based on single shift basis and 300 days of working schedule in a
Year, the working hrs per day is 10/12 hours a day, 25 days in a month.
The cost of equipment / materials indicated refer to a particular make and the
Prices are approximate to these prevailing at the time of preparation of the
profile
Non- refundable deposits, project report preparation fees etc are considered under
pre- operative expenses.
Interest on total investment has been calculated @ 12%per annum. ( 7%, Interest
subsidy on loan will provided by ASURM, Govt of Assam.)
Depreciation has been taken on straight line method
Manpower & Administrative expenditure has been calculated as per capacity
Utilisation.
4. PROJECT COST ESTIMATES AND MEANS OF FINANCE:
FIXED CAPITAL ESTIMATES:
Land & Building: The promoter has taken a room on rent for the proposed project
against monthly rent of Rs. 4000 (Two thousand) The room size is around 600 square
feet which will be repaired with the materials available locally . The showroom will
be a well- ventilated covered hall, and will also include rooms for storing raw
materials, finished product, and cash counter.
Total Fixed Capital:
Sl.
No
Particulars
Number
/unit Price
(Rs)
Amount
(Rs)
1.
Furniture’s
--
15,000.00
2.
Electrification
--
4,000.00
3.
Decoration
--
5000.00
4.
Misc. Fixed
Asset
5000.00
Other
Miscellaneous
01
2500.00
Fridge
10,000.00
Total
41,500.00
27
Prepared by Indian Institute of Entrepreneurship
WORKING CAPITAL ESTIMATES:
Consumables Stores for Sale:
Sl
Items
Qty
Amount
Highly perishable items
Biscuits ( different brand)
3 Doz
500.00
Potato
50 kgs
bags
1500.00
Bread/Bakery items local brand
5 doz
350.00
Onion
50 kgs
1500.00
Egg
1 cartoon
1800.00
Soup & caned products
2 Doz
500.00
Butter( Small & big size)
10 pieces
2500.00
Non Perishable items
Rice( different qualities ) 04 different
qualities
25 kgs
each
4000.00
Joha Rice
15 kgs
780.00
Basmati Rice
05 pkt
450.00
Parboiled Rice
25 kgs
875.00
Soup & Caned Products.
05 doz
100.00
Frozen Food
2 doz
250.00
Spices Pkt
2 doz
250.00
Local Spices (turmeric, Jaluk, )
02 ks
each
450.00
Dry Chilly, long, tezpata etc
1000.00
Dairy, cheese
10 pkt
350.00
Sugar
50 kgs
2400.00
Dal ( three varities)
50 kgs
7,500.00
Atta ( 1 kgs /2 Kgs)
2 Doz
950.00
Maida
2 Doz
960.00
Rice Power
05 pkt
375.00
Besan power ( paket)
05 kgs
460.00
misc items
20,000.00
Total:
49,800.00
Manpower (per Month)
Sl No
Personnel’s
Nos. Salary
(Rs)
Amount (Rs)
1.
Manager (self)
1 Nos
Self
3.
Helper
1 Nos @
Rs.5000/-
5,000.00
Total
5000.00
28
Prepared by Indian Institute of Entrepreneurship
Administrative Expenses (Per Month) :
Sl No
Description
Amount
(Rs. )
1.
Utility (Electricity / Water
800.00
2.
Rent /Office Stationary
4,000.00
3.
Travelling Expenses
500.00
4.
Advertisement
/Publicity/packaging
700.00
5.
Insurance
500.00
Total
6,500.00
Total Working capital required
Sl
No.
Description
Stock
Period
Amount (
Rs. )
1.
Consumable
stores for sale
-----
1,48,500.00
2.
Manpower
30 Days
5,000.00
3.
Administrative
Expenses
30 Days
5,500.00
Total
1,58,500.00
Total Capital Investment of the project :
A
Total Fixed Capital
41,500.00
B
Working Capital
1,58,500.00
Total:
2,00,000.00
Means of Finance
Promoters Contribution:
50,000.00
Loan from Bank
1,50,000.00
2,00,000.00
(Besides 7% Subsidy on Loan under SEP-I under NULM, Govt. of
Assam)
29
Prepared by Indian Institute of Entrepreneurship
Projected Sales Realisation: (Expected sale of Consumable stocks: )
Projected
daily
Sales
Amount
approximately
average margin
10.68%
Projected daily
sales of stock
Rs
6000/-
6,000.00
640.00
Projected monthly
sales of stock
------
1,50,000.00
16,000.00
Projected Yearly
sales turn over
------
1,80,000.00
1,92,000.00
ANNEXURE-IX
COST PROFITABILTY STATEMENT
(Rs .In Thousands ‘000)
Item /Year
1
2
3
4
5
A
Capacity
Utilisation
50%
60%
70%
80%
90%
B
Sales turn over
192.00
230.40
268.80
307.20
345.60
C
Expenditures
Manpower
60.00
65.00
69.00
72.00
72.00
Administrative
Expenses
66.00
70.00
75.00
80.00
80.00
D
Total
Operating
Expenses(Total
of C)
126.00
135.00
144.00
152.00
152.00
E
Operating
Profit
66.00
95.40
124.80
156.14
156.14
F
Depreciation (
straight line
method))
6.00
6.00
6.00
6.00
6.00
G
Interest
18.00
14.40
10.8
7.20
3.60
H
Net Profit (E-
F-G))
55.42
84.26
113.10
142.94
146.54
K
Cash Flow
61.42
90.26
119.10
148.94
152.54
30
Prepared by Indian Institute of Entrepreneurship
ANNEXURE-X
REPATMENT SCHEDULE
Interest rate @ 7%
( Rs. In Thousands, 000)
Year
01
02
03
04
05
Opening
Balance
150.00
120.00
90.00
60.00
30.00
Principal
30.00
30.00
30.00
30.00
30.00
Interest @
12% P/A
18.00
14.40
10.80
7.20
3.60
Closing
Balance
120.00
90.00
60.00
30.00
NIL
ANNEXURE-XI
DEBT-SERVICE COVERAGE RATIO
(Rs In Thousand ‘000)
Particulars
First
Year
Second
Year
Third
Year
Fourth
Year
Fifth
year
A. INCOME
Net Profit
55.42
84.26
113.10
142.94
146.54
Depreciation
6.00
6.00
6.00
6.00
6.00
Interest
18.00
14.40
10.8
7.20
3.60
Total
79.42
104.66
129.90
156.14
156.14
B. COMMITMENT
Principal
30.00
30.00
30.00
30.00
30.00
Interest
18.00
14.40
10.8
7.20
3.60
Total
38.00
34.40
40.80
37.20
33.60
DSRC
2.09
3.04
3.18
4.20
4.65
Average
DSCR
1:3.43
31
Prepared by Indian Institute of Entrepreneurship
ANNEXURE - XII
BREAK –EVEN ANALYSIS
A.FIXED COST
Depreciation
6000.00
Interest
18,000.00
Fixed administrative overhead
12500.00
Fixed manpower
15,000.00
TOTAL
51,500.00
B.TOTAL OF NET PROFIT 3
rd
Year of Operation)
1,13,100.00
BEP
Fixed Cost X100/ Fixed Cost + Net Profit
51,500X 100/ 51,500 + 113,100
31.29% ( on Sales)
ANEXURE - XIII
RETURN ON INVESTMENT
(Third Year of Operation)
(a)Return on Sales Ratio:
Net Profit X100/ Total Sales
Rs. 1,13,100.00 X 100.00/ Rs.2,05,420
=7.67 %
(b) Return on Total Investment
Net Profit X100/ Total Investment
Rs. 102610.00 X 100.00/Rs. 2,00,000.00
=51.31%
32
Prepared by Indian Institute of Entrepreneurship
Project Report on
RETAIL STATIONERY SHOP
33
Prepared by Indian Institute of Entrepreneurship
PROJECT ON STATIONERY SHOP ( Under SEP-I)
HIGHLIGHT OF THE PROJECT
A.
NAME OF THE UNIT
M/S( As per Udyog Adhar Registration)
I
CONSTITUTION
PROPRIETORHIP
II
PROMOTER
Trainee with Skill Knowledge on respective
Project
III
PROPOSED LOCATION
URBAN/SEMI URBAN AREA
B
TOTAL PROJCT INVESTMENT
I
FIXED CAPITAL
Rs.41,5000.00
II
WORKING CAPITAL
Rs.1,58,500.00
III
TOTAL
Rs. 2,00,000.00
IV
MEANS OF FINANCE
V
PROMOTERS CONTRIBUTION
@25%
Rs. 50,000.00
VI
BANK LOAN @75%
Rs. 1,50,000.00
VI
TOTAL
Rs. 2,00,000.00
VII
PROJECTED NET PROFIT
(Rs. 000)
01
Year
02
Year
03
Year
04 Year
05 Year
55.42
84.26
113.10
142.94
146.54
C
FINANCIAL ANYLASIS
I
PERCENTAGE OF PROFIT ON SALES
5.79%
II
PERCENTAGE OF PROFIT ON TOTAL INVESTMENT
47.93%
III
BEP
31.29%
IV
AVERAGE DSCR
1:3.43
V
DEBT EQUITY RATIO
3:1
VI
LOAN REPAYMENT PERIOD
05 Years
34
Prepared by Indian Institute of Entrepreneurship
RETAIL STATIONERY SHOP
1. Introduction:
Stationery items like notebooks, exercise books, logbooks, pen, pencil, high lighter, marker,
sharpener, file, folder, papers, eraser, stapler, items required for various project, pencil box
etc. are compulsory items for students. The stationery business is a customer’s driven The
Stationery ha historically means a wide range materials, papers, and officials supplies,
writing implements, greeting cards, glue, pencils case etc.
2. Market Potential:
In the global market in writing instruments is estimated about USD 38 billion of which global
pen market accounts for nearly USD 30 billion. In India market consists of around 15
largescale, 100 medium scale, and 1000 small scale manufacturing units. These units have a
combined production capacity of over 10 million pieces a day. About 80% of revenue of the
pen industries in India comes with a price range of up to Rs. 15/-. A small percentage of pens
is priced in the range of Rs. 100/- to Rs.300/- and miniscule of the market is contributed by
the super premium segments in which the price tag goes high as Rs. 1,00,000/-or more. While
the market for lower price range (up to Rs. 15/-) is growing a rate of 7% to 8% annually, the
market for the pen is growing at 8% to 10%. Besides the global Stationery products market
size was valued at USD 90.6 billion in 2018 and expecting to expand at 5.1% over the
forecast period. Growing literacy rate across the country and the increasing numbers of youth
inclining towards higher education are among the prominent factor for the market growth. In
India the stationery industry is worth Rs. 4000 core, comprising of wide verities of products
and categories. It can right be classified in to paper products, writing instruments,
computers stationeries, school stationery, and office stationery. Though the Indian
stationery industries are dominated by the local stationery players, and a large numbers of
players are now entering in the industry.
In India, major demand for stationery products is generated from education sector due to
increasing enrolment of students in schools and higher educational institutions. Further,
growing e-commerce industry in the country is also contributing to rising sales of stationery
products. Office segment is the second highest consumer of stationery products and is
anticipated to register healthy growth during the forecast period due to growing demand for
stationery products in the service sectors. Amongst all, paper stationery accounted for the
35
Prepared by Indian Institute of Entrepreneurship
major revenue share in the overall India stationery market. Exercise notebooks, copier paper
and premium paper stationery are the key revenue generating segments. Furthermore,
exercise notebook segment has captured highest share in paper stationery market. Amongst
all the regions, the Northern region accounted for highest revenue share in 2017. Market is
expected to flow on account of growing youth population and literacy rate across the country.
In large offices you often have a stationery cupboard you can pull stuff from. In your home or
small office you need to think ahead.
3. Stationery stores for sale
Pens – blue, black, red
Highlighter Permanent marker (Text / Sharpie)
Pencil and pencil sharpener
Colour pencils
Colour pens
Colour markers
Eraser
Correction tape / fluid / Liquid Paper
Mechanical pencil and spare leads
Plain paper (for printer)
Notebooks, ruled paper, binder books
Scrapbook, art book
Ruler
Glue
Sticky tape + dispenser
Packing tape + dispenser
Bulldog / Fold back clips
Stapler and staples
Rubber bands
Paper clips
Hole punch: 2 hole, 3 hole, 4 hole
Drawing pins
Plastic file, paper file
Manila folders
Storage pockets
Arch folders: 2 ring? 3 ring? 4 ring?
Folder divider
36
Prepared by Indian Institute of Entrepreneurship
4. BASIS AND PRESUMPTIONS:
The project is based on single shift basis and 300 days of working schedule in a
Year, the working hrs per day is 10/12 hours a day, 25 days in a month.
The cost of equipment / materials indicated refer to a particular make and the
Prices are approximate to these prevailing at the time of preparation of the
profile
Non- refundable deposits, project report preparation fees etc are considered under
Pre- operative expenses.
Interest on total investment has been calculated @ 12%per annum. Besides 7%
interest subsidy
Depreciation has been taken on straight line method
Manpower & Administrative expenditure has been calculated as per capacity
utilisation.
5. ROJECT COST ESTIMATES ANDMEANS OF FINANCE:
FIXED CAPITAL ESTIMATES:
5.1 Land & Building: The promoter has taken a room on rent for the proposed
project against monthly rent of Rs. 4000 (Two thousand) the room size is around 600
square feet which will be repaired with the materials available locally. The showroom
will be a well- ventilated covered hall, and will also include storing 0f consumable
materials with cash counter.
Total Fixed Capital:
Sl.
No
Particulars
Number
/unit
Price
(Rs)
Amount
(Rs)
1.
Stores Furniture’s
(Racks)
--
25,000.00
2.
Electrification
--
4,000.00
3.
Front Rack
--
5000.00
4.
Misc. Fixed Asset
7,500.00
Total
41,500.00
37
Prepared by Indian Institute of Entrepreneurship
WORKING CAPITAL ESTIMATES:
Consumables Stores for Sale:
Sl
Items
Consumption
Amount
Paper & Paper products
Exercise Books of various size ( plain,
rolled, drawing books, computer
printing paper, full scrape papers ,
colour paper, drawing sheet, Text
Books etc.
High Sale
Item
Writing instruments
Writing instruments( pen- blue, black,
red, green,- highlighter, permanent
marker, verities grade of pencil,
colour pencil, etc.
High Sale
Item
Computer Stationeries
computer paper, pen drive, computer
cover etc.
Low Sale
Item
School Stationeries:
sharpener, Erase, Mechanical pencil,
Correction tape, Scrapbook, spare
leads, Scrapbook, art book, Ruler,
Glue etc.
Medium Sale
Item
Office Stationeries.
Notebooks, ruled paper, binder books,
Sticky tape + dispenser, Packing tape
+ dispenser, Bulldog / Fold back clips,
Stapler and staples, Rubber bands,
Paper clips, Hole punch ( 2 hole, 3
hole, 4 hole), Drawing pins, Plastic
file, paper file, Manila folders, Storage
pockets, Enveloped ( different size),
Arch folders ( 2 ring, 3 ring, 4 ring),
Folder divider etc.
High Sale
Item
Total
Rs. 1,48,500.00
Manpower (per Month)
Sl No
Personnel’s
Nos. Salary
(Rs)
Amount
(Rs)
1.
Manager (self)
1 Nos
Self
3.
Helper
1 Nos @
Rs.5000/-
5,000.00
5000.00
38
Prepared by Indian Institute of Entrepreneurship
Administrative Expenses (Per Month)
Sl No
Description
Amount
(Rs. )
1.
Utility (Electricity / Water
800.00
2.
Rent /Office Stationary
4,000.00
3.
Travelling Expenses
500.00
4.
Advertisement /Publicity/packaging
700.00
5.
Insurance
500.00
6,500.00
Total Working capital required
Sl No.
Description
Stock
Period
Amount ( Rs. )
1.
Consumable stores
for sale
-----
1,48,500.00
2.
Manpower
30 Days
5,000.00
3.
Administrative
Expenses
30 Days
5,500.00
1,58,500.00
Total Capital Investment of the project :
A
Other Fixed Asset
41,500.00
B
Working Capital
1,58,500.00
Total:
2,00,000.00
Means of Finance
Promoters Contribution:
50,000.00
Loan from Bank
1,50,000.00
2,00,000.00
(Besides 7% Subsidy on Loan under SEP-I under NULM, Govt. of Assam)
39
Prepared by Indian Institute of Entrepreneurship
Projected Sales Realisation: (Expected sale of Consumable stocks: )
Stock Sales
Average margin on sales 16%
on sales volume. (amount)
Projected daily
average Sales
4000/-
Rs. 640.00
Projected monthly
average Sales
1,00,000.00
Rs. 16,000.00
Projected Yearly
average sales turn
over
Rs. 1,92,000.00
ANNEXURE-XIV
COST PROFITABILTY STATEMENT
(Rs .In Thousands ‘000)
Item /Year
1
2
3
4
5
A
Capacity Utilisation
50%
60%
70%
80%
90%
B
Sales turn over
192.00
230.40
268.80
307.20
345.60
C
Expenditures
Manpower
60.00
65.00
69.00
72.00
72.00
Administrative Expenses
66.00
70.00
75.00
80.00
80.00
D
Total Operating
Expenses(Total of C)
126.00
135.00
144.00
152.00
152.00
E
Operating Profit
66.00
95.40
124.80
156.14
156.14
F
Depreciation ( straight line
method))
6.00
6.00
6.00
6.00
6.00
G
Interest
18.00
14.40
10.8
7.20
3.60
H
Net Profit (E-F-G))
55.42
84.26
113.10
142.94
146.54
K
Cash Flow
61.42
90.26
119.10
148.94
152.54
40
Prepared by Indian Institute of Entrepreneurship
ANNEXURE-XV
REPATMENT SCHEDULE
Interest rate @ 7%
( Rs. In Thousands, 000)
Year
01
02
03
04
05
Opening
Balance
150.00
120.00
90.00
60.00
30.00
Principal
30.00
30.00
30.00
30.00
30.00
Interest @
12% P/A
18.00
14.40
10.80
7.20
3.60
Closing
Balance
120.00
90.00
60.00
30.00
NIL
ANNEXURE-XVI
DEBT-SERVICE COVERAGE RATIO
(Rs In Thousand ‘000)
Particulars
Firs
t
Yea
r
Seco
nd
Year
Thir
d
Year
Fourt
h
Year
Fifth
year
A. INCOME
Net Profit
55.4
2
84.26
113.
10
142.
94
146.
54
Depreciati
on
6.00
6.00
6.00
6.00
6.00
Interest
18.0
0
14.40
10.8
7.20
3.60
Total
79.4
2
104.6
6
129.
90
156.
14
156.
14
B. COMMITMENT
Principal
30.0
0
30.00
30.0
0
30.0
0
30.0
0
Interest
18.0
0
14.40
10.8
7.20
3.60
Total
38.0
0
34.40
40.8
0
37.2
0
33.6
0
DSRC
2.09
3.04
3.18
4.20
4.65
Average
DSCR
1:3.43
41
Prepared by Indian Institute of Entrepreneurship
ANNEXURE- XVII
BREAK –EVEN ANALYSIS
(Rs. in Thousands, 000)
A.FIXED COST
Depreciation
6000.00
Interest
18,000.00
Fixed administrative overhead
12500.00
Fixed manpower
15,000.00
TOTAL
51,500.00
B.TOTAL OF NET PROFIT 3
rd
Year of Operation)
1,13,100.00
BEP
Fixed Cost X100/ Fixed Cost + Net Profit
51,500X 100/ 51,500 + 113,100
31.29% ( on Sales)
ANEXURE XVIII
RETURN ON INVESTMENT
( Third Year of Operation)
(Rs. in Thousands, 000)
(a)Return on Sales Ratio:
Net Profit X100/ Total Sales
Rs. 1,13,100.00 X 100.00/ Rs.2,05,420
=7.67 %
(b) Return on Total
Investment
Net Profit X100/ Total Investment
Rs. 102610.00 X 100.00/Rs. 2,00,000.00
=51.31%
42
Prepared by Indian Institute of Entrepreneurship
Project Report on
SMALL RETAIL GARMENT SHOP
43
Prepared by Indian Institute of Entrepreneurship
PROJECT ON SMALL RETAIL GARMENT SHOP( Under SEP-I)
HIGHLIGHT OF THE PROJECT
A.
NAME OF THE UNIT
M/S( As per Udyog Adhar Registration)
I
CONSTITUTION
PROPRIETORHIP
II
PROMOTER
Trainee with Skill Knowledge on respective
Project
III
PROPOSED LOCATION
URBAN/SEMI URBAN AREA
B
TOTAL PROJCT INVESTMENT
I
FIXED CAPITAL
Rs.31,500.00
II
WORKING CAPITAL
Rs.1,68,500.00
III
TOTAL
Rs. 2,00,000.00
IV
MEANS OF FINANCE
V
PROMOTERS CONTRIBUTION @25%
Rs. 50,000.00
VI
BANK LOAN @75%
Rs. 1,50,000.00
VI
TOTAL
Rs. 2,00,000.00
VII
PROJECTED NET PROFIT
(Rs. 000)
01
Year
02
Year
03
Year
04
Year
05
Year
105.34
124.34
134.55
162.87
166.41
BESIDES THE NULM, GOVT. OF ASSAM PROVIDED NECESSARY EQUITY SUPPORT
C
FINANCIAL ANYLASIS
I
PERCENTAGE OF PROFIT ON SALES
5.39%
II
PERCENTAGE OF PROFIT ON TOTAL INVESTMENT
52.67%
III
BEP
32.88%
IV
AVERAGE DSCR
1:3.97
V
DEBT EQUITY RATIO
3:1
VI
LOAN REPAYMENT PERIOD
05 Years
44
Prepared by Indian Institute of Entrepreneurship
1. INTRODUCTION :
The textile industry occupies a unique place in our country. one of the earliest to come
into existence in India, it accounts for 14% of the total Industrial production , contributes
to nearly 30% of the total exports and is the second largest employment generation after
agriculture. Textile industry is providing one of the most basic needs of people and the
holds importance; maintaining sustained growth for improving quality of life. It has a
unique Position as a self – reliant industry, from the production of raw materials to the
delivery of finished products with substantial value-addition at each stage of processing;
it is a major contribution to the country’s economy.
The textile industry in India roughly employs around 35 million people (in 2000-2001),
making it the Second largest employer in the country after agriculture. The economic
significance of the industry is further established by the fact that it contributes about 18
percent of the industrial production in the country and about 30 percent of its of its export
earnings.
The Textile-sector has two board segments. The first are the unorganised- sector,
consisting of handloom, handicrafts and sericulture, which are operated on small scale
and through traditional tools and methods. The second is the organised sector consisting
of spinning, apparel and garments segments which apply modern machineries and
techniques such as economic of scale.
The Indian domestic apparel market is one of the world fastest-growing market and offer
significant potentiality for apparel retailers and manufacturers. The domestic market is
expected to become one of the major consumption bases in near future. Key growth
driver of the industry include rising income level, increasing preference for branded
apparel and rapid growth of organized retail. Further, factors such as changing fashion
trends, increasing share of the designer wear, growing consumer class and rising
urbanization have further led to the growth of the apparel industry. The Indian apparel
market is fairly fragmented in nature and comprises a significant number of retailers and
manufacturers. The apparel market has experienced strong growth in recent few years,
attracting many new players, as it is low berries to entry and affordable capital
requirement allow even small players to enter in the market.
45
Prepared by Indian Institute of Entrepreneurship
The business of garments is now a developed business in its own right. Peoples
inclination towards the readymade cloths is rising day by day. This inclination can be
attributed to their busy schedules and the attractive designs as well as variety of
readymade cloths. Although there is considerably big range under “readymade’ cloths but
their we shall deals with the children’s wears & ladies wears, and gens pants shirts. The
market of such cloth is quite wide and materials required for making such cloths is also
not problems even in local levels.
The IIE , Guwahati, has prepared this model economy sized Ready-made Garment
selling centre . Considering the demand prospects, locational advantages, capital
investment vis-à-vis incentives and concessions offered by the Govt. for promoting
industries in this part of the country, the proposed unit is found to be a techno
economically viable proposition
2. BASIS AND PRESUMPTIONS:
2.1: The project is based on single shift basis and 300 days of working schedule in a
Year, the working hrs per day is 8 hours a day, 25 days in a month.
2.2: The cost of equipment / materials indicated refer to a particular make and the
Prices are approximate to these prevailing at the time of preparation of the profile
2.3: Non- refundable deposits, project report preparation fees etc are considered under
pre- operative expenses.
2.4: Interest on total investment has been calculated @ 12%per annum, besides interest
subsidy will provided @ 7% per annum by Assam urban livelihood mission.
2.5: Depreciation has been taken on straight line method
2.6: Manpower & Administrative expenditure has been calculated as per capacity
Utilisation.
46
Prepared by Indian Institute of Entrepreneurship
3. PROJECT COST ESTIMATES ANDMEANS OF FINANCE:
FIXED CAPITAL ESTIMATES:
3.1: Land & Building: The promoter has taken a room on rent for the proposed project
against monthly rent of Rs. 2,000 (Two thousand) The room size is around 500 square feet
which will be repaired with the materials available locally . The showroom will be a well-
ventilated covered hall, and will also include rooms for storing raw materials, finished
product, and cash counter.
Total Fixed Capital:
Sl.
No
Particulars
Number /unit Price
(Rs)
Amount (Rs)
1.
Furniture’s
--
15,000.00
2.
Electrification
--
4,000.00
3.
Decoration
--
5000.00
4.
Misc. Fixed Asset
5000.00
Other Miscellaneous
2500.00
TOTAL
31,500.00
4. WORKING CAPITAL ESTIMATES:
Consumable stores for sale:
Sl
products
Quantities
Average Rate
Amount
1
Jeans pants ( for children)
2 doz
4800/- per doz
9,600.00
2
Gabardine pants ( for
children)
2
3600/-
7,200.00
3
Teri coat pants & shirts ( for
children)
2 doz
4000/-
8,000.00
47
Prepared by Indian Institute of Entrepreneurship
4
Cotton pants & Shirts ( for
children)
4 Doz
5,000.00
20,000.00
5
Baba suits
5 doz
1200/-
6,000.00
6
Frock/ Solo- war for
Children
5 doz
7200/-
36,000.00
7
Newborn babies wear
10 doz
800/-
8,000.00
8
Gens pants & shirts
2 doz
5000/-
10,000.00
9
Gens T shirts
2 doz
5500/-
11,000.00
10
Ladies formal dress
04 doz
4000/--
16,000.00
11
ladies gowns
5 doz
2000/-
10,000.00
12
Handkerchiefs/ musk
30 doz
120/-
3600
13
others miscellaneous
20
1000/-
12,100.00
TOTAL
1,57,500.00
Manpower (per Month)
Sl No
Personnel’s
Nos. Salary (Rs)
Amount (Rs)
1.
Manager (self)
1 Nos
Self
3.
Helper
1 Nos @
Rs.5000/-
5,000.00
TOTAL
5000.00
48
Prepared by Indian Institute of Entrepreneurship
Administrative Expenses (Per Month) :
Sl No
Description
Amount
(Rs. )
1.
Utility (Electricity / Water
1,000.00
2.
Rent /Office Stationary
2.500.00
3.
Travelling Expenses
500.00
4.
Advertisement /Publicity
1,000.00
5.
Insurance
500.00
TOTAL
5,500.00
Total Working capital required
Sl No.
Description
Stock Period
Amount ( Rs. )
1.
Consumable stores for sale
-----
157,500.00
2.
Manpower
30 Days
5,000.00
3.
Administrative Expenses
30 Days
5,500.00
1,68,000.00
Total Capital Investment of the project :
A
Total Fixed Capital
31,500.00
B
Working Capital
1,68,500.00
Total:
2,00,000.00
49
Prepared by Indian Institute of Entrepreneurship
Projected Sales Realisation: (Expected sale of Consumable stocks)
Stock Sales (Monthly)
15%( approximately)
Projected Monthly Sales
Rs. 120,000/-
18,000.00
Projected Yearly sales turn over
Rs. 14,40,000/-
2,16,000.00
Means of Finance
Promoters Contribution:
50,000.00
Loan from Bank
1,50,000.00
2,00,000.00
(Besides 7% Subsidy on Loan under SEP-I under NULM, Govt. of Assam)
50
Prepared by Indian Institute of Entrepreneurship
ANNEXURE-XIX
COST PROFITABILTY STATEMENT
(Rs .In Thousands ‘000)
Item /Year
1
2
3
4
5
A
Capacity Utilisation
50%
55%
60%
65%
65%
B
Sales turn over
2160.00
2376.00
2592.00
2808.00
2808.00
C
Expenditures
Consumable stores
1890.00
2079.00
2268.00
2457.00
2457.00
Manpower
60.00
65.00
69.00
72.00
72.00
Administrative Expenses
66.00
70.00
75.00
80.00
80.00
D
Total Operating Expenses(Total of C)
2016.00
2214.00
2412.00
2609.00
2609.00
E
Operating Profit
144.00
162.00
180.00
199.00
199.00
F
Depreciation ( straight line method))
6.30
6.30
6.30
6.30
6.30
G
Interest
18.00
14.40
10.8
7.20
3.60
H
Gross Profit( D-E-F)
119.70
141.30
152.90
185.50
189.10
I
Tax Provision (12%)
14.36
16.96
18.35
23.03
22.69
J
Net Profit
105.34
124.34
134.55
162.47
166.41
K
Cash Flow
111.64
130.64
140.85
168.77
172.71
51
Prepared by Indian Institute of Entrepreneurship
ANNEXURE-XX
REPATMENT SCHEDULE
( Rs. In Thousands, 000)
@ 15%
Year
01
02
03
04
05
Opening
Balance
150.00
120.00
90.00
60.00
30.00
Principal
30.00
30.00
30.00
30.00
30.00
Interest @
12% P/A
18.00
14.40
10.80
7.20
3.60
Closing
Balance
120.00
90.00
60.00
30.00
NIL
ANNEXURE-XXI
DEBT-SERVICE COVERAGE RATIO
(Rs In Thousand ‘000)
Particulars
First Year
Second
Year
Third
Year
Fourth
Year
Fifth year
A. INCOME
Net Profit
105.34
124.34
134.55
168.87
166.41
Depreciation
6.30
6.30
6.30
6.30
6.30
Interest
18.00
14.40
10.8
7.20
3.60
Total
129.64
145.04
151.65
182.37
176.31
B. COMMITMENT
Principal
30.00
30.00
30.00
30.00
30.00
Interest
18.00
14.40
10.8
7.20
3.60
Total
48.00
44.00
40.80
37.20
33.60
DSRC
2.70
3.30
3.72
4.90
5.25
Average DSCR
1:3.97
52
Prepared by Indian Institute of Entrepreneurship
ANNEXURE- XXII
BREAK –EVEN ANALYSIS
A.FIXED COST
Depreciation
6300.00
Interest
18,000.00
Fixed administrative overhead
36,400.00
Fixed manpower
24,000.00
TOTAL
54,700.00
B.TOTAL OF NET PROFIT 1st
Year of Operation)
111,64.00
BEP
Fixed Cost X100/ Fixed Cost + Net Profit
54,700/X 100/ 54,700/- + 111640/-
32.88% ( on Sales)
ANEXURE XXIII
RETURN ON INVESTMENT ( 1
st
Year of Operation)
(a)Return on Sales Ratio:
Net Profit X100/ Total Sales
Rs11, 640.00. /- X 100/ Rs. 2,160,00/-
=5.39 %
(b) Return on Total Investment
Net Profit X100/ Total Investment
Rs. 1,05,340/- X 100/Rs. 2,00,000.00
=52.67%
53
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Project Report on
TAILOR SHOP
54
Prepared by Indian Institute of Entrepreneurship
PROJECT ON TAILORING ( Under SEP-I)
HIGHLIGHT OF THE PROJECT
A.
NAME OF THE UNIT
As per Udyog Adhar
I
CONSTITUTION
Proprietorship
II
PROMOTER
Skill on Tailoring
III
PROPOSED LOCATION
May Home Scale/Urban/Semi Urban area near to
market
B
TOTAL PROJCT INVESTMENT
I
FIXED CAPITAL
Rs.72,000.00
II
WORKING CAPITAL
Rs. 1,28,0000.00
III
TOTAL
Rs. 2,00,000.00
IV
MEANS OF FINANCE
V
PROMOTERS CONTRIBUTION @25%
Rs. 50,000.00
VI
BANK LOAN @75%
Rs. 1,50,000.00
VI
TOTAL
Rs. 2,00,000.00
VII
PROJECTED NET PROFIT
(Rs. 000)
01
Year
02
Year
03
Year
04
Year
05
Year
102.61
143.59
166.56
220.54
224.13
BESIDES THE NULM, GOVT. OF ASSAM PROVIDED NECESSARY EQUITY SUPPORT
C
FINANCIAL ANYLASIS
I
PERCENTAGE OF PROFIT
ON SALES
7.67%
II
PERCENTAGE OF PROFIT
ON TOTAL INVESTMENT
51.31%
III
BEP
1
st
year
2
nd
year
3
rd
year
4
th
year
5
th
year
65.74%
63.01%
48.96%
43.29%
42.31%
IV
AVERAGE DSCR
1:4.51
V
DEBT EQUITY RATIO
3:1
VI
LOAN REPAYMENT PERIOD
05 Years
55
Prepared by Indian Institute of Entrepreneurship
1. INTRODUCTION:
It is an age long practice to stitch clothes by a tailor as per the sizes and orders and delivers
to the customers. This tailoring and embroidery can be an excellent self-employment
opportunity for the persons who have experience in tailoring and design of apparels. A small
shop can be opened with a modest investment in securing machines having embroidery
attachments. Since this is a made to order and more or less a service centre business the
working capital requirements are small compared to a ready-made garment unit. Besides, this
gives an employment to other persons also either on part time or full time basis. The tailoring
shop can cater to the stitching requirements and needs of blouses, Salwar kameez for ladies,
pants, shirts, half pants and children garments. Embroidery can be done on saris, blouses and
on apparels of children. An extra income can also be earned by undertaking repairing of the
clothes. All the machines and materials needed for stitching are available easily in every nook
and corner of the country and there will not be any difficulty in starting such a unit. The dress
is part of our lifestyle, when it comes to ladies; mainly there dress was stitched by buying
materials. This project report for stitching tuning / tailoring unit explains the viability of the
project in this locality. As the fashion changes, population increases, the demand for stitching
unit will also increase. Prompt delivery and affordable price are the key elements to success
here. The sector also created newer avenues for many businesses and entrepreneurs based in
the locality. Though there are a lot of stitching units, the demand for another stitching unit is
also very high. This profession gives the entrepreneur a decent income and opportunity to
provide employment to multiple ladies.
2. Product / Services & process
Under this project the promoter may stitch all type of dresses such as:( shirts, trousers,
Churidars, Blouses, Skirts, Lining etc works) An increasing number of women now prefer to
work and therefore need formal clothing. The Ladies suit offers good look, physical comfort
and perfect functionality in office as well as industrial duties. It can also be worn on all
outdoor occasions. Also women needed dress according to their shape. The best positioning
of a tailoring shop is to offer the dress on time and charge very affordable price. Besides local
advertisement and paper inserts were very effective
56
Prepared by Indian Institute of Entrepreneurship
3.PROJECT COST ESTIMATES & MEANS OF FINANCE:
3.1. FIXED CAPITAL:
Land & Building:
The rental for the shed of area 800 sq. ft. = Rs. 2000 /- (Per month).
Machinery & Equipment:
SlNo
Particulars
No
Amount (Rs.)
Amount (Rs.)
1.
Foot operated Sewing Machine
4
6,000.00
24,000.00
2.
Overlook Machine with motor
2
3,000.00
6,000.00
3
Interlock Machine
1
10,000.00
10,000.00
3.
Electric Irons
3
1,200.00
3,600.00
4.
Pressing table, cutting table, etc
8,000.00
5
Almirah / rack
---
3,400.00
3,400.00
6.
Scissors, Button Holders, etc
2000.00
TOTAL
57,000.00
Other Fixed Assets:
SlNo
Particulars
Amount (Rs.)
1.
Office Furniture
5,000.00
2.
Office Equipments
2,000.00
3.
Electrification
2,600.00
4.
Misc Expenses
2,000.00
TOTAL
11,600.00
57
Prepared by Indian Institute of Entrepreneurship
Preliminary & Pre-operative Expense:
SlNo
Particulars
Amount (Rs.)
1.
Preparation of Project Report
3,000.00
2.
Traveling & Conveyance
1,500.00
3.
Misc. Expense/legal expenses
2,500.00
TOTAL
Rs. 7,000.00
Total Fixed Capital:
SlNo
Particulars
Amount (Rs.)
1.
Machinery & Equipment
53,400.00
2.
Fixed Assets
11,600.00
3.
Preliminary & Pre-operative Expense
7,000.00
TOTAL
Rs. 72,000.00
WORKING CAPITAL:
Raw Material (Per Month):
SlNo
Particulars
Amount (Rs.)
1.
Sewing Thread
2,000.00
2.
Buttons
500.00
3.
Hooks, collars, zips, machine oils, needles, etc
1,500.00
4.
Clothes various qualities
50,000.00
5.
Misc. Expense
1,000.00
TOTAL Rs. 55,000.00
58
Prepared by Indian Institute of Entrepreneurship
Administrative Expense (Per Month):
SlNo
Particulars
Amount (Rs.)
1.
Rent
5000.00
2.
Electricity
1500.00
3.
Postage & Stationery
500.00
4.
Repairs & Maintenance
1,500.00
TOTAL
8500.00
Total Working Capital:
SlNo
Particulars
Amount (Rs.)
1.
Fabrics, button, stitching thread etc (
Consumables)
55,000.00
2.
Manpower
37,000.00
3.
Administrative Expense
8,500.00
TOTAL
Rs. 1, 05,000.00
Manpower (Per Month):
SlNo
Personnel
No
Salary (Rs.)
Amount (Rs.)
1.
Manager/ Cutter (Self)
1
2000.00
2,000.00
3.
Tailors
4
8000.00
32,000.00
5.
Unskilled Workers
1
3000.00
3000.00
TOTAL
6
37,000.00
59
Prepared by Indian Institute of Entrepreneurship
WORKING CAPITAL REQUIREMENT
Sl
Items
Stock period
Amount
Consumables
1.5 months
82,500.00
Manpower Cost
1 month
37,000.00
Administrative overheads
1 months
8500.00
1,28,000.00
Total Capital Investment:
SlNo
Particulars
Amount (Rs.)
1.
Fixed Capital
72,000.00
2.
Working Capital Required
1,28,000.00
TOTAL Rs.2, 00,000.00
Means of Finance:
1
Promoters Contribution (25%)
50,000.00
2
Bank Loan
1,50,000.00
Total:
2,00,000.00
Interest subsidy 7% on total loan amount under NULM,
Government of Assam
Projected Sales Realization ( Per Months)
SL
Tailoring Charges
4 tailor X 3umbers of job works @
average rate Rs.200/- X 25 days=
Rs.2400/- daily X 25 days
60,000.00
Supply of Cloth with
the job works
Sale of Cloth( in Stock) if required:
54580.00
Monthly Sales
114580.00
Annual Sales turn over
13,74,960.00
Say Rs.
13,75,000.00
60
Prepared by Indian Institute of Entrepreneurship
ANNEXURE – XXIII
PROJECTED PROFITABILITY STATEMENT
Rs. In thousand
SL
Particulars
1
st
Year
2
nd
Year
3
rd
Year
4
th
Year
5
th
Year
Capacity assumption
50%
55%
60%
65%
65%
A
Sales Realization
1375.00
1512.5
1650
1787.5
1787.5
B
Expenditures
Consumables
660.00
726.00
792.00
858.00
858.00
Manpower
444.00
467.00
493.00
520.00
520.00
Other Expenses
102.00
109.00
116.00
121.00
121.00
C
Total Operating Cost
(Total of (B)
1206.00
1302.00
1401.00
1499.00
1499.00
D
Total Operating Profit
(A-D)
169.00
210.50
249.00
288.50
288.50
E
Depreciation
7.14
7.14
7.14
7.14
7.14
F
Profit after Depreciation
(D-F)
161.86
203.36
226.86
226.86
226.86
G
Interest
18.00
14.40
10.80
7.20
3.60
H
Profit after Interest &
Depreciation (F-G)
143.86
188.96
216.06
219.66
223.26
I
Marketing Expenses
@3% on Sales
41.25
45.375
49.5
53.625
53.63
J
Net Profit
102.61
143.59
166.56
220.54
224.13
K
Cash flow
109.75
150.73
173.70
227.68
231.28
61
Prepared by Indian Institute of Entrepreneurship
Annexure XXIV
Depreciation Schedule,
Straight-line Methods
(05 years)
(Rs. In Thousands ‘000)
Sl
Items
1
st
year
2
nd
year
3
rd
year
4
th
year
5
th
year
A
Opening Stock
50.00
42.86
35.72
28.58
21.44
B
Depreciation
7.14
7.14
7.14
7.14
7.14
C
Closing Stocks
42.86
35.72
28.58
21.44
14.30
ANEXURE-XXV
LOAN REPAYMENT SCHEDULE @15 % ANNUALLY
(Rs. In Thousands)
ITEM
01
02
03
04
05
Opening Balance
150.00
120.00
90.00
60.00
30.00
Repayment Principal
30.00
30.00
30.00
30.00
30.00
Interest @12% PA
18.00
14.40
10.80
7.20
3.60
Closing Balance
120.00
90.00
60.00
30.00
-
62
Prepared by Indian Institute of Entrepreneurship
ANNEXURE XXVI
Debt Service Coverage Ratio
(Rs. In Thousands ‘000)
1
st
year
2
nd
year
3
rd
year
4
th
year
5
th
year
A
INCOMES
(i)
Net Profit.
102.61
143.59
166.56
220.54
224.13
(ii)
Depreciation
7.14
7.14
7.14
7.14
7.14
(iii)
Interest
18
14.4
10.8
7.2
3.6
Total of (A)
127.75
165.13
184.5
234.88
234.87
B
COMMITMENT
(i)
Principal
30
30
30
30
30
(ii
Interest
18
14.4
10.8
7.2
3.6
Total of B
48
44.4
40.8
37.2
33.6
DSCR
2.66
3.23
4.08
5.93
6.67
Average DSCR
1:4.51
ANNEXURE-XXVII
CALCULATION OF SIMPLE PAY BACK PERIOD
(In Rs.Thousand)
Year
Cash Outflow
Cash Inflow
Cumulative C.I
00
200.00
-
-
01
-
109.75
109.75
02
-
150.73
260.48
03
-
173.70
434.18
04
-
227.68
661.86
05
-
231.28
893.14
Simple Payback Period of the project is 1 Year 04 months
63
Prepared by Indian Institute of Entrepreneurship
ANNEXURE-XXVIII
BREAK EVEN POINT
(Based on 3
th
Year of operation)
(Rs. In Thousands)
SL
Year
1
2
3
4
5
Capacity
50%
55%
60%
65%
65%
A
A. Sales
1375.00
1512.00
1650.00
1787.50
1787.50
B
Variable Cost
(i)Raw materials
660.00
726.00
792.00
858.00
858.00
(ii)Variable Overheads
329.00
394.00
365.00
385.00
385.00
C
Total (B)
989.00
1120.00
1157.00
1243.00
1243.00
D
Contribution:
386.00
392.00
493.00
544.50
544.50
Fixed Cost
E
(i)Depreciation
18.75
15.98
13.58
11.54
9.80
(ii) Interest
18.00
14.40
10.80
7.20
3.60
(iii) Fixed Overheads
217.00
217.00
217.00
217.00
217.00
Total (E)
253.75
247.38
241.38
235.74
230.40
BEP(E/D X100)
65.74%
63.01%
48.96%
43.29%
42.31%
ANEXURE XXIX
RETURN ON INVESTMENT
(a)Return on Sales Ratio:
Net Profit X100/ Total Sales
Rs. 102610.00 X 100.00/ Rs.1337,500.00
=7.67 %
(b) Return on Total Investment
Net Profit X100/ Total Investment
Rs. 102610.00 X 100.00/Rs. 2,00,000.00
=51.31%
64
Prepared by Indian Institute of Entrepreneurship
Project Report on
TEA STALL
65
Prepared by Indian Institute of Entrepreneurship
PROJECT ON TEA STALL ( SEP-I)
HIGHLIGHT OF THE PROJECT
A.
NAME OF THE UNIT
As per Trade Licenses/ Certification from State Public
Health
I
CONSTITUTION
Proprietorship
II
PROMOTER
Skill knowledge on Retail Training
III
PROPOSED LOCATION
Urban area/Semi urban/ near to hut, bazar
B
TOTAL PROJCT INVESTMENT
Rs. 1,10,000.00
I
FIXED CAPITAL
Rs.81,000.00
II
WORKING CAPITAL
Rs. 29,000.00
III
TOTAL
Rs. 1,10,000.00
IV
MEANS OF FINANCE
V
PROMOTERS CONTRIBUTION @25%
Rs. 27,5000.00
VI
BANK LOAN @75%
Rs.82,5000.00
VII
PROJECTED NET PROFIT
(Rs. 000)
01 Year
02 Year
03 Year
04 Year
05 Year
77.55
87.98
111.20
131.22
133.20
VI
TOTAL
BESIDES THE NULM, GOVT. OF ASSAM PROVIDED NECESSARY EQUITY SUPPORT
C
FINANCIAL ANYLASIS
I
PERCENTAGE OF PROFIT ON SALES
9.87%
II
PERCENTAGE OF PROFIT ON TOTAL INVESTMENT
75.50%
III
BEP
47.22%
IV
AVERAGE DSCR
1:5.76
V
DEBT EQUITY RATIO
3:1
VI
LOAN REPAYMENT PERIOD
05 Years
66
Prepared by Indian Institute of Entrepreneurship
1. INTRODUCTION
Tea as a refresher drink is being consumed throughout the country in urban as well as rural
area. Tea shop/stall operation is a popular activity feasible in small town/village market. It
requires small investment and it can be run by any unemployed youth in rural villages/small
town. India is a 2nd highest producer for the tea crop after the china, chai business is not only
preferred in metro cities but also it is a profitable venture in small towns, tea business is easy
to start and a great opportunity for the woman entrepreneurs who are looking for the
small business ideas.
Globally, India is the largest grower, producer, and exporter of the tea. The tea business of
our country accounts for 31% of global production. Nowadays, the industry is having a 1692
registered tea manufacturer and 2200 registered tea exporters in the country. Additionally, the
industry enjoys 5548 registered tea buyers and 9 tea auction centers. The Indian tea industry
is about 170 years old. The Northern and Eastern part of India is the major tea growing areas.
However, Nilgiri in the southern part of the country also produces a significant amount of tea.
Generally, the three prominent tea-growing regions in India are Darjeeling, Assam, and
Nilgiri. Additionally, other tea growing areas are Karnataka, Tripura, Himachal Pradesh,
Tamilnadu, Kerala, Meghalaya, Mizoram, and Bihar. Kolkata, Siliguri, Guwahati, Coonoor,
Cochin, and Coimbatore are the major tea auction centers.
A tea stall is a highly lucrative retail tea business you can start with any type of investment
capacity. Do you know the brand Tea Junction? the brand operates shop-in-shop style. A tea
stall with comfortable sitting accommodation and a wide range of tea is a very lucrative space
for any age group of people.
2. MARKET POTENTIAL
The operation/running of tea/coffee stalls in village/small town markets caters the
needs of requirements of tea/coffee and traditional snacks to the local people. Normally tea
shops functioning in these areas do not require much infrastructure for this activity. Tea
shops/stalls have very good potential to be run in rural areas.
67
Prepared by Indian Institute of Entrepreneurship
3. PROJECT COST ESTIMATES AND MEANS OF FINANCE:
FIXED CAPITAL ESTIMATES:
4. Land & Building : The promoter has taken a room on rent for the proposed
project against monthly rent of Rs. 5,000 (Two thousand ) The room size is
around 800 square feet
Fixed Asset
Sl.
No
Particulars
Amount (Rs)
1.
Furniture’s/Fixtures
25,000.00
2.
Electrification
10,000.00
3
LPG Gas connection & Stove
15,000.00
4
Utensils, glass cup plate, bucket, water stores tank etc.
20,000.00
5
Stores container
3,000.00
6
Small Refrigerator
8,000.00
Total:
81,000.00
Preliminary &Pre-operative Expenses
Sl.
No
Description
Amount (Rs)
1.
Market survey & DPR Preparation
1,000.00
2.
Legal Expenses
1,000.00
3.
Travel& Convenience
1,000.00
4.
Miscellaneous Pre-operative expenses
2,000.00
TOTAL
5000.00
68
Prepared by Indian Institute of Entrepreneurship
WORKING CAPITAL ESTIMATES:
Raw Materials:(One months)
Sl
products
Quantities
Average
Rate
Amount
1.
Sugar / sugar cube
30Kgs. .
60/- per Kg.
1800.00
2
Milk
55 Lts.
50/- per ltrs.
2750.00
3
Other ingredients
L/S
1000.00
4
snacks
L/S
10,000.00
5
Deposable cup & plate
450 dozen
20/ per
dozen
9,950.00
6
Tea
20 kg
Rs. 150/-
per kg
3000.00
7
Organic Tea
10 kgs
3000.00
31,500.00
Total Fixed Capital:
Sl No
Description
Amount (Rs)
1.
Land & Building
Rented
2.
Fixed Asset
81,000.00
3.
Preliminary&
Preoperative Expenses
5,000.00
TOTAL
86,000.00
69
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Administrative Expenses (Per Month)
Sl No
Description
Amount
(Rs. )
1.
Utility (Electricity / Water
1,000.00
2.
Rent
2,000.00
3.
Travelling Expenses
500.00
4.
Advertisement /Publicity
500.00
5.
Insurance
500.00
6.
Contingency
1,000.00
5,500.00
Manpower (One Month)
Sl
No
Personnel’s
Nos. Salary (Rs)
Amount (Rs)
1.
Manager (self)
1 Nos
7000.00
2.
Salesman (self)
1 Nos @
Rs5,000/-
7,000.00
3.
Helper
2 Nos @
Rs.2,500/-
5,000.00
Total:
19,000.00
70
Prepared by Indian Institute of Entrepreneurship
Total Working capital Required
Sl No.
Description
Stock Period
Amount ( Rs. )
1.
Consumable stores for sale
one week
9,000.00
2.
Manpower
30 Days
13,000.00
3.
Administrative Expenses
30 Days
7,000.00
29,000.00
Total Capital Investment of the project :
Sl
A
Total Fixed Capital:
81,000.00
B
Working Capital requirement:
22,500.00
Total:
1, 10,000.00
Means of Finance :
Sl
A
Promoters Contribution @25%
27,500.00
B
Bank Loan @ 75%
82,500.00
Total
1, 10,000.00
(Interest subsidy 7% 0n Total loan amount under NULM, Govt. of Assam))
Projected Sales Realization:
Expected sale of Consumable stocks:
Amount in Rupees
Daily average Sale ( Milk Tea/Red Tea)
270 cups of tea
@ 6/- per cup
1620.00
snacks @ 3.00 approximately (250
plate)
250 plate @
4/- per plate
1000.00
Total Sales
2620.00
Monthly Sales
65,500.00
Yearly Sales:
7,86,000.00
71
Prepared by Indian Institute of Entrepreneurship
ANNEXURE-XXX
COST PROFITABILTY STATEMENT
(Rs .In Thousands ‘000)
Item /Year
01
02
03
04
05
Capacity Utilisation
50%
55%
60%
65%
65%
Sales turn over
786.00
865.00
943.60
1021.00
1021.00
Expenditures
Consumables
378.00
416.00
453.80
491.60
491.60
Manpower
228.00
242.00
255.00
269.00
269.00
Administrative Overheads
66.00
83.00
88.00
94.00
94.00
Total Operating Cost
672.00
741.00
796.80
854.60
854.60
Operating Profit
114.00
124.00
146.80
166.40
166.40
Depreciation
10.80
10.80
10.80
10.80
10.80
Interest
9.90
7.92
5.94
3.96
1.98
Gross Profit
93.30
105.28
130.06
151.64
153.62
Marketing Expenses 2% on Sales
15.75
17.30
18.86
20.42
20.42
Net Profit
77.55
87.98
111.20
131.22
133.20
Cash flow
88.35
98.78
122.00
142.02
144.00
72
Prepared by Indian Institute of Entrepreneurship
ANNEXURE-XXXI
REPATMENT SCHEDULE
( Rs. In Thousands, 000)
@ 12%
Year
01
02
03
04
05
Opening
Balance
82.50
66.00
49.50
33.00
16.50
Principal
16.50
16.50
16.50
16.50
16.50
Interest
9.90
7.92
5.94
3.96
1.98
Closing
Balance
66.00
49.50
33.00
16.50
NIL
Annexure-XXXII
DEBT-SERVICE COVERAGE RATIO
(Rs In Thousand ‘000)
Particulars
First Year
Second
Year
Third
Year
Fourth
Year
Fifth year
A. INCOME
Net Profit
77.55
87.98
111.20
131.22
133.20
Depreciation
10.80
10.80
10.80
10.80
10.80
Interest
9.90
7.92
5.94
3.96
1.98
Total
98.25
106.70
127.94
145.98
145.98
B. COMMITMENT
Principal
16.50
16.50
16.50
16.50
16.50
Interest
9.90
7.92
5.94
3.96
1.98
Total
26.4
24.42
22.44
20.46
18.48
DSRC
3.72
4.37
5.70
7.13
7.90
Average DSCR : 1:5.76
73
Prepared by Indian Institute of Entrepreneurship
ANNEXURE- XXXIII
BREAK –EVEN ANALYSIS
(RS. In Thousands ,000)
( ON FIRST YEAR OF OPERATION )
FIXED COST :
1. Depreciation Rs. 10.80
2. Interest Rs. 8.60
3. Manpower Rs. 40.00
4. Others Rs. 10.00
-----------------------------------------------------------------
Total Rs. 69.40
Break- even point :
Fixed cost X 100
=--------------------------------------
Fixed cost + Net Profit
69.40 X 100
= ---------------------------------------
69.40 + 77.55
6940.00
= ------------------------------------
146.95
= 47.22% (On Sales)
74
Prepared by Indian Institute of Entrepreneurship
ANNEUXRE –XXXIV
PARCENTAGE OF PROFIT
(Rs In Thousands ‘000)
(FIRST YEAR OF OPERATION )
A) On Total Investment
Net Profit X 100
= ------------------------------
Total Investment
77.55 X 100
= ----------------------
110.00
= 70.50%
B) On Total Sales
Net profit X 100
= ----------------------------
Total sales
77.55 X 100
= -----------------------------
786.00
= 9.87
75
Prepared by Indian Institute of Entrepreneurship
Project Report on
TWO WHEELER MOTOR GARAGE
76
Prepared by Indian Institute of Entrepreneurship
PROJECT ON REPAIRING & SERVICING OF TWO-WHEELERS ( SEP-I)
HIGHLIGHT OF THE PROJECT
A.
NAME OF THE UNIT
As per Udhog Adhar
I
CONSTITUTION
Proprietorship
II
PROMOTER
Skill Knowledge
III
PROPOSED LOCATION
Urban/ Semi Urban
B
TOTAL PROJCT INVESTMENT
I
FIXED CAPITAL
Rs. 1,18,000.00
II
WORKING CAPITAL REQUIREMENT
Rs. 82,000.00
III
TOTAL
Rs. 2,00,000.00
IV
MEANS OF FINANCE
V
PROMOTERS CONTRIBUTION @25%
Rs. 50,000.00
VI
BANK LOAN @75%
Rs. 1,50,000.00
VI
TOTAL
Rs. 2,00,000.00
VII
PROJECTED NET PROFIT
(Rs. 000)
01 Year
02 Year
03 Year
04 Year
05 Year
100.96
142.42
174.97
212.13
218.14
NULM under
C
FINANCIAL ANYLASIS
I
PERCENTAGE OF PROFIT ON SALES
7.04%
II
PERCENTAGE OF PROFIT ON TOTAL INVESTMENT
87.49%
III
BEP
53.26%
IV
AVERAGE DSCR
1:5.05
V
DEBT EQUITY RATIO
3:1
VI
LOAN REPAYMENT PERIOD
05 Years
77
Prepared by Indian Institute of Entrepreneurship
1. Introduction:
Two wheelers in the present time have become necessity of every lower middle class.
Various new models have been introduced in the market. Even in the village two wheelers
have become a necessity. with departments and various organization extending the loan
facilities to all the employees the number of two wheelers has registries is sharp increasing.
The efficiency and workability of every vehicle depend on its regular servicing and
throughout examinations by the specialist of two wheelers. Every vehicle should be
compulsorily taken for examination and servicing on a quarterly basis. Besides, frequent
repair work is also required due to servicing and repairing unit( to cater to two wheelers ) is
set up there are good possibilities of its success. Since servicing & repairing of vehicles’
required a specific type & repairing of vehicles required a specific type of training
/experience, it is expected of entrepreneurs to be fully trained in the job.
Mainly three type of things comprise the servicing/repairing of vehicles:-
Fixing the puncture of the vehicles
Denting/painting, etc. of the vehicles’
Normal servicing/ repairing related work on the vehicles’.
Every vehicles’ which is used, definitely need servicing/repairing after a few days thus the
unit will always get work. Considering this aspect of the project , related details and estimate
have been assessed with respect to the servicing/repairing of two wheelers.
2. Target of getting services job in the units:
Various types of servicing will be provided in the unit likes complete servicing of the units,
washing, oiling/greasing and job on engine, etc. besides these servicing, replacement of
spares parts will also be done.
3. Procedures of servicing/repairing of vehicles:-
The process of Servicing/repairing of two wheelers vehicle first and foremost involves
completed examination and detected the defect in the vehicle. After throughout examination
the vehicle, a complete estimates of the expenditures and the components/spares parts to be
fitted in the vehicle, is given to the customers and then the vehicles is serviced/repaired as per
their requirements.
78
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4. PROJECT COST ESTIMATES & MEANS OF FINANCE:
FIXED CAPITAL:
Land & Building:
The rental for the shed of area 800 sq. ft. = Rs. 4,000 /- (Per month).
Machinery & Equipment:
SlNo
Particulars
No
Amount (Rs.)
Amount (Rs.)
1.
Air Compressor ( 2 HP)
1
25,000.00
25,000.00
2.
Service machine/pressure
machine to wash vehicle ( 3 HP)
1
30,000.00
30,000.00
3
Water pump
1
15,000.00
15,000.00
4.
Water Tank
1
8,000.00
8,000.00
5.
Electrical hand drill machine
2
2,500.00
5,000.00
6
Electrical Bench grinder
1
5,000.00
5,000.00
7
Hand Spray painting
1
2,500.00
2,500.00
8
Digital Multi Meter.
1
2,000.00
2,000.00
9
Greasing Equipments
1
2000.00
2,000.00
10
Battery charger
1
4000.00
4,000.00
11
Tools (spanners/fixes, screw
driver, hammers etc.
4se
t
3,000.00
12,000.00
Furniture’s & Fixtures
4000.00
4,000.00
Preliminary & Preoperative
Expenses
3500.00
3500.00
Total
1, 18,000.00
Total Fixed Capital:
SlNo
Particulars
Amount (Rs.)
1.
Total Fixed Capital
1, 18,000.00
Total:
1, 18,000.00
79
Prepared by Indian Institute of Entrepreneurship
WORKING CAPITAL:
Raw Material (Per Month):
SlNo
Particulars
Qty/Rate
1.
Gear Oil
30 Lit. @900/-
27,000.00
2.
Lubricating grease
10 Kg @ Rs.
100/-
1,000.00
3.
Spares parts like grip cover,
Head light glass, Brake shoes,
Fluid pin, Nut, Gear wires,
clutch wires,, rubber mats,
silencer, seat cover, others
rubber parts, wipe cloth for
vehicles, Emery papers, cotton
waste etc.
------
1, 20,000.00
5.
Misc. Expense
1,000.00
1,000.00
Total:
1, 49,000.00
Manpower (Per Month):
SlNo
Personnel
No
Salary (Rs.)
Amount (Rs.)
1.
Manager /skill in two (Self)
Skill in wheelers repairing
1
9,000.00
2,000.00
2.
Skill worker
2
7,000.00
14,000.00
3.
Unskilled Workers
2
4000.00
8,000.00
Total:
05
24,000.00
Administrative Expense (Per Month):
SlNo
Particulars
Amount (Rs.)
1.
Rent
4,000.00
2.
Electricity/water
2,500.00
3.
Postage & Stationery
500.00
4.
Repairs & Maintenance
1,000.00
Total
8,000.00
Working Capital (per Month)
SlNo
Particulars
Amount (Rs.)
1.
Raw Material
1, 49,000.00
2.
Manpower
24,000.00
3.
Administrative Expense
8,000.00
Total
149,320.00
80
Prepared by Indian Institute of Entrepreneurship
Working Capital Requirement:
SlNo
Items
Stock Period
Amount
1.
Raw Materials
10 days
40,000.00
2.
Manpower
1 Months
24,000.00
3.
Administrative Overheads
1 Months
8,000.00
Total
82,000.00
Total Capital Investment:
SlNo
Particulars
Amount (Rs.)
1.
Fixed Capital
1, 18,000.00
2.
Working Capital Required
82,000.00
Total
2, 00,000.00
Means of Finance: (under SEP-I) of NULM
Sl
Source of Finance
Amount
i
Promoters Contribution @25%
50,000.00
ii
Bank Loan@ 75%
1,50,000.00
Total:
2,00,000.00
Interest subsidy on loan @7% under ANULM, Govt. of Assam
PROJECTED SALES REALIZATION ( Per Annum)
0SL
i
Complete Servicing
of Vehicles
1200 Vehicle @ 240/- per vehicles
2,88,000.00
ii
Income from
washing of vehicles
1500 vehicles @ Rs 120/-
1,80,000.00
iii
Income from
changing the oil and
grease
1000 vehicles @100/-
1,00.000.00
iv
Total:
568,000.00
81
Prepared by Indian Institute of Entrepreneurship
ANNEXURE-XXXV
LOAN REPAYMENT SCHEDULE @12 % ANNUALLY
(Rs. In Thousands)
ITEM/ YEAR
01
02
03
04
05
Opening Balance
150.00
120.00
90.00
60.00
30.00
Repayment Principal
30.00
30.00
30.00
30.00
30.00
Interest @ 12% PA
18.00
14.40
10.80
7.20
3.60
Closing Balance
120.00
90.00
60.00
30.00
NIL
ANNEXURE-XXXVI
DEPRECIATION SCHEDULE @ 20 %
(Rs. In Thousands)
WRITTEN DOWN VALUE METHOD:
Sl
i
Opening Values
118.00
94.40
75.52
60.42
48.34
ii
Depreciation
23.60
18.88
15.10
12.08
9.67
iii
Closing Values
94.40
75.52
60.42
48.34
38.67
ANNEXURE-XXXVII
COST & PROFITABILITY ESTIMATES:
Rs. In thousand)
Item/Year
01
02
03
04
05
Utilization
50%
55%
60%
65%
65%
Sales Realization
Labor cost
568.00
624.80
681.60
738.40
738.40
Raw material consumption
1504.00
1654.00
1805.00
1955.00
1955.00
Total
2072.00
2282.80
2486.40
2693.40
2693.40
Expenditure
82
Prepared by Indian Institute of Entrepreneurship
Raw Material consumption
1504.00
1654.00
1805.00
1955.00
1955.00
Manpower Cost
288.00
305.28
322.56
339.84
339.84
Administrative Expenses
96.00
101.76
107.52
113.28
113.28
Cost of Production
1888.00
2061.04
2235.80
2408.12
2408.12
Operating Profit
184.00
221.36
250.60
285.28
285.28
Depreciation
23.60
18.88
15.10
12.08
9.67
Interest
18.00
14.40
10.80
7.20
3.60
Gross Profit
Marketing Expenses 2% on
Sales
41.44
45.66
49.73
53.87
53.87
Net Profit
100.96
142.42
174.97
212.13
218.14
Cash Inflow
124.56
161.30
190.07
224.21
227.81
ANNEXURE-XXXVIII
DEBT-SERVICE COVERAGE RATIO:
(Rs. In Thousands)
Year
01
02
03
04
05
A. Income
Net Profit
100.96
142.42
174.97
212.13
218.14
Depreciation
23.60
18.88
15.10
12.08
9.67
Interest
22.20
17.76
13.32
8.88
4.44
Total
146.76
180.18
203.39
233.09
232.25
B. Commitment
Principal
30.00
30.00
30.00
30.00
30.00
Interest
18.00
14.40
10.80
7.20
3.60
Total
48.00
44.40
40.80
37.20
33.60
DSCR
3.06
4.06
4.99
6.27
6.91
Average DSCR: 1:5.05
83
Prepared by Indian Institute of Entrepreneurship
ANNEXURE-XXXIX
BREAK EVEN POINT
FIXED COST:
(Rs. In Thousand)
i
Depreciation
23.60
ii
Interest
22.20
iii
Fixed Overheads
38.40
iv
Manpower Overheads
115.20
v
Total:
199.40
BEP
Total Fixed Cost X100
19940.00
Fixed Cost + Net Profit ( 3
rd
Year)
199.40 +174.97= 374.37
BEP On Sales
19940/374.37
53.26%
ANNEXURE XXXX
PERCENTAGE OF PROFIT Rs,( 000)
On Total Sales
Net Profit X 100/ Total Sales
Rs. 174.97/ 2486.40
7.04% on Sales
On Total Investment
Net Profit X 100/Total Investment
Rs. 174.97X100/ 200.00
87.49%
84
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Project Report on
WEAVING UNIT
85
Prepared by Indian Institute of Entrepreneurship
PROJECT ON WEAVING UNIT ( SEP-I)
HIGHLIGHT OF THE PROJECT
A.
NAME OF THE UNIT
As per Udyog Adhar
I
CONSTITUTION
Proprietorship
II
PROMOTER
Skill Knowledge on Handloom & Weaving.
III
PROPOSED LOCATION
May in own Residence/Semi Rural area near
to market.
B
TOTAL PROJCT INVESTMENT
I
FIXED CAPITAL
Rs. 1,35,800.00
II
WORKING CAPITAL
Rs. 64,200.00
III
TOTAL
Rs. 2,00,000.00
IV
MEANS OF FINANCE
V
PROMOTERS CONTRIBUTION @25%
Rs. 50,000.00
VI
BANK LOAN @75%
Rs. 1,50,000.00
VI
TOTAL
Rs. 2,00,000.00
VII
PROJECTED NET PROFIT
(Rs. 000)
01
Year
02
Year
03
Year
04
Year
05
Year
64.35
104.88
143.94
183.03
188.31
BESIDES THE NULM, GOVT. OF ASSAM PROVIDED NECESSARY EQUITY SUPPORT
C
FINANCIAL ANYLASIS
I
PERCENTAGE OF PROFIT ON SALES
13.06%
II
PERCENTAGE OF PROFIT ON TOTAL INVESTMENT
91.97%
III
BEP
51.90%
IV
AVERAGE DSCR
1.4.17
V
DEBT EQUITY RATIO
3:1
VI
LOAN REPAYMENT PERIOD
05 Years
-
86
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1. INTRODUCTION:
The Handloom sector plays a very important role in India’s economy. It is a part of our
culture and heritage and one of the largest economic activities after agriculture having the
capacity of absorbing a greater number of manpower. In 2009-10 this sector provides direct
employment to over 65 lakhs persons in India of which 60.40% are women. This sector
contributes nearly 19% of the total cloth produced in the country and also adds substantially
to export earnings. The ratio: of handloom to power loom in terms of cloth in 2009-10 was
1:5.55. In India, Commercial looms formed 38.56% of the total looms owned, while 61.44%
of the total looms were domestic looms. Of the looms in working order 40.90% looms were
engaged for commercial purpose while 59.10% were used as domestic looms i.e., production
of these looms was for personal consumption of the household. Moreover, out of the total
weavers 47.51% are full time weavers and out of them 60% worked independently, 15% in
cooperative societies, 18% under master weavers and the rest under private owners, state
khadi and village industries. Moreover, weavers households were found to worked for 197
days in a year in India.
The reservoir of handloom skills is concentrated in the North-Eastern states of India, who
together account for 16.83 lakh (60.5%) handloom households out of the total 27.83 lakh
units engaged in the Country . Assam alone accounts for 12.41 lakh (44.6%) handloom
households, whereas Manipur and Tripura have 1.79 lakh (6.4%) and 1.21 lakh (4.3%) such
households, respectively. However, only 13.4% of the commercial looms of the country are
in NEI and their contribution to the country’s total production of handloom fabrics is merely
20%. In 2009-10, a total of 1403484 weavers are found engaged in this profession in Assam
of whom 147042 are full time weavers while 1256442 are part-time weavers.
2. BASIS AND PRESUMPTION :
The unit will remain open for 8 hours a day for 300 working days in a calendar year.
The price of raw materials and equipments is as per present market price.
Non-refundable deposits, feasibility study fees, trial production, establishment
expenses are considered under pre-operative expenses.
87
Prepared by Indian Institute of Entrepreneurship
3. PROJECT COST ESTIMATES & MEANS OF FINANCE:
FIXED CAPITAL:
Land & Building: Area required is approximately 1500 sq feet will on retal basis.
Plant & Machinery:
Sl.no
Particulars
No.
Rate (Rs.)
Amount (Rs.)
1.
Draw Boy Loom Frame
4
9000.00
36,000.00
2.
Slay
4
2500
10,000.00
3.
Shuttle
4
800.00
3200.00
4.
Reed
4
500.00
2000.00
5.
Dobby Machine
2
7000.00
14,000.00
6.
Dheki
4
800.00
3200.00
7.
Punching Plate
08
200.00
1600.00
8.
Warping Frame
100gms
100.00
10,000.00
9.
Winding Charka Chain Fitting
5
4000.00
20,000.00
10.
Bobbin
80
150.00
12000.00
11.
Pirn
5 dozen
100.00
500.00
12.
HC Halls
10
100.00
1000.00
13.
Healed Stick (60”)
3
800.00
2400.00
14.
C.V. Heads
4
2000.00
8,000.00
15.
Hooks
6
150.00
900.00
Furniture’s & Fixtures
8000.00
Preliminary & Preoperative
3000.00
TOTAL
1,35,800.00
88
Prepared by Indian Institute of Entrepreneurship
Total Fixed Capital:
Sl.no.
Particulars
Amount (Rs.)
1.
Land & Building
Rented
2.
Total Fixed capital
1,35,800.00
TOTAL
1,35,800.00
RAW MATERIALS (P/M)
Sl
ITEMS
Quantity
Amount
1
Cotton yarn
10 Bundle (2/80)
10,000.00
2
Cotton yarn/wool
5 Bundle (2/20)
5,000.00
3
Other consumable for design etc.
L/S
5,000.00
Rs.20,000.00
MANPOWER (PER MONTH)
Sl
Particulars
No
Per Month
1
Supervisor cum designer (Self)
01
7,000.00
2
Weaver
03
30,000.00
3
Helper
01
4,000.00
TOTAL
05
41,000.00
89
Prepared by Indian Institute of Entrepreneurship
OTHER EXPENSES
Sl
Particulars
Per Months
Annually
1
Postage/Stationery
500.00
2
Insurance
1,000.00
3
Power
1,000.00
4
Advertisement
1,500.00
5
Packing materials
3,000.00
6
House Rent
3,000.00
TOTAL
10,000.00,
TOTAL WORKING CAPITAL (PER MONTH)
Raw materials
20,000.00
Manpower
41,000.00
Other expenses
10,000.00
TOTAL
71,000.00
ESTIMATION OF WORKING CAPITAL
Sl
ITEMS
Stock period
Amount
Raw Materials
15
10,000.00
Manpower
01
31,200.00
Overheads
01
8,000.00
Work in process
04days
6000.00
Finished goods inventory/ Bills
Receivables
05 days
9000.00
TOTAL
64,200.00
90
Prepared by Indian Institute of Entrepreneurship
TOTAL INVESTMENT:
Sl
Particulars
Amount
1
Fixed Capital
1,35,800.00
2
Working Capital Requirement
64,200.00
TOTAL
2,00,000.00
MEANS OF FINANCE ( Under SEP-I)
( Considering Debt Equity Ratio is = 3:1 ) Rs in thousand
Sl
Particulars
Promoters
Contribution/
Bank Loan
Total
i
Equipments
33,950.00
101850.00
135,800.00
ii
Working Capital Loan
16050.00
48,150.00
64200.00
Total
50,000.00
1,50,000.00
2,00,000.00
Interest Subsidy @ 7% PA under SEP-I Scheme of ANULM, Govt. of Assam
91
Prepared by Indian Institute of Entrepreneurship
PROJECTED MONTHLY SALES REALIZATION AT 50% CAPACITY
Quantity
Selling
Price
i
Gamocha
30
90/-
2700.00
ii
Mekhela/Sadar with Blouse
7
2500/-
17,500.00
iii
Shawl
10
450
4,500.00
iv
Shirting
20
350/-
7,000.00
v
Lungi
60
156/-
9,360.00
vi
Sari/ Solewar pices
30
800/-
24,000.00
vii
Table Cloth
20
200/-
4,000.00
viii
Bed Sheet
10
450/-
4,500.00
ix
Bed Cover ( Blended)
5
600/-
3000.00
Total Projected Sales Monthly
76560.00
Total Projected Sales Yearly
918720.00
92
Prepared by Indian Institute of Entrepreneurship
ANNEXURE – XXXXI
PROJECTED PROFITABILITY STATEMENT
Rs. In thousand
SL
Particulars
1
st
Year
2
nd
Year
3
rd
Year
4
th
Year
5
th
Year
Capacity assumption
50%
55%
60%
65%
65%
A
Sales Realisation
918.720
1010.59
1102.46
1194.34
1194.34
B
Expenditures
Consumables
240
264
288
312
312
Manpower
456
483
511
538
538
Other Expenses
120
127
134
142
142
Total Operating Cost
816
874
933
992
992
Total Operating Profit
102.72
136.59
169.46
202.34
202.34
Depreciation
20.37
17.31
14.72
12.51
10.63
Profit after Depreciation
82.35
119.28
154.74
190.23
191.91
Interest
18.00
14.40
10.80
7.20
3.60
NET Profit
64.35
104.88
143.94
183.03
188.31
Cash flow
84.72
122.19
158.66
195.54
198.94
93
Prepared by Indian Institute of Entrepreneurship
Annexure - XXXXII
Depreciation Schedule,
WDV Methods
(15% PA)
(Rs. In Thousands ‘000)
Sl
Items
1
st
year
2
nd
year
3
rd
year
4
th
year
5
th
year
A
Opening Stock
135.80
115.43
98.12
83.40
70.89
B
Depreciation
20.37
17.31
14.72
12.51
10.63
C
Closing Stocks
115.43
98.12
83.40
70.89
60.26
ANNEXURE-XXXXIII
REPAYMENT SCHEDULE
@ 12% PA
(Rs. In Thousands ‘000)
Year
01
02
03
04
05
Opening Balance
150.00
120.00
90.00
60.00
30.00
Principal
30.00
30.00
30.00
30.00
30.00
Interest @ 12% PA
18.00
14.40
10.80
7.20
3.60
Closing Balance
120.00
90.00
60.00
30.00
----
94
Prepared by Indian Institute of Entrepreneurship
Annexure – XXXXIV
Debt Service Coverage Ratio
(Rs. In Thousands ‘000)
1
st
year
2
nd
year
3
rd
year
4
th
year
5
th
year
A
INCOMES
(i)
Net Profit.
64.35
104.88
143.94
183.03
188.31
(ii)
Depreciation
20.37
17.31
14.72
12.51
10.63
(iii)
Interest
18.00
14.40
10.80
7.20
3.60
Total of (A)
102.72
136.59
169.46
202.74
202.54
B
(i)
Principal
30.00
30.00
30.00
30.00
30.00
(ii
Interest
18.00
14.40
10.80
7.20
3.60
Total of (B)
48.00
44.40
40.80
37.20
33.60
DSCR
2.14
3.07
4.15
5.45
6.03
Average DSCR
1:4.17
95
Prepared by Indian Institute of Entrepreneurship
ANNEXURE-XXXXV
BREAK EVEN POINT
(Based on the third Year of Operation)
Fixed Cost
Sl
Particulars
Amount
Interest
18,000.00
Depreciation
20370.00
Operating Expenses
1,17,000.00
1,55,370.00
Fixed Cost X 100
Break Even Point = -------------------------------
Fixed Cost + Net Profit
155370.00 X 100
= -------------------------------
155370.00+ 143940.00
= 51.90 %
96
Prepared by Indian Institute of Entrepreneurship
ANNEXURE-XXXXVI
PERCENTAGE OF PROFIT
(Based on the Third Year of Service)
Net Profit X 100
(a) On Total Investment = -----------------------------
Total Investment
143940.00 X 100
= ------------------------------
2, 00,000.00
= 71.97%
Net Profit X 100
(b) On Total Sales = ------------------------------
Total Sales
143940.00 X 100
= -----------------------------
1102460.00
= 13.06 %
97
Prepared by Indian Institute of Entrepreneurship
Project Report on
FAST FOOD UNIT
98
Prepared by Indian Institute of Entrepreneurship
PROJECT REPORT ON FAST FOOD ( under SEP-I)
Name of the Unit
As per Udyog Adhar
Constitution
Proprietorship
Promoter
Skill knowledge on Retail business
Proposed Location
Near to School/College/Government
Ofices/Commercial Place etc.
Total Project Investment
Fixed Capital
Rs. 1, 74,000.00
Working Capital
Rs. 26,400.00
Total
Rs. 2,00,000.00
Means of Finance
Promoters’ Contribution @ 25%
Rs. 50,000.00
Bank Loan @ 75%
Rs. 1,50,000.00
Total
Rs. 2,00,000.00
(Besides the NULM GOV provided 7% interest subsidy on total loan amount)
FINANCIAL ANYLASIS
Loan Repayment Period
05 Years
Percentage of Profit on Total
Investment:
45.75%
Percentage of Profit on Total Sales
9.75%
BEP
1
st
Year
2
nd
year
3
rd
year
4
th
year
5
th
year
54.28%
49.93%
45.84%
44.08%
42.86%
Projected Yearly Profit
(Rs ,000)
01 Year
02 Year
03 Year
04 Year
05 Year
137.60
153.06
193.52
233.98
239.56
Average DSCR
1:3.28
Debt Equity Ratio:
3:1
1. PRODUCT & USES:
In the present world, working class especially in town and cities are prone to a lot of tensions
and stress. It is quite unpleasant for the working women to prepare lunch for herself and her
office going husband due to many other pre-occupations like child care and attending school
going children.
Getting jolt about in houses and rising early to go to the market are problematic. As a result
the working class prefer to have prepared food. This has given the opportunity for the people
to set up Dhaba close to the Government offices, Industrial estates and colleges and bank of
the National high way etc. Moreover, the habit of eating outside is catching up fast with
urban youth and families. Today’s need is quality food served at affordable price in the
quickest possible time. Dhaba caters all these need.
99
Prepared by Indian Institute of Entrepreneurship
2. MARKET:
Dhabas are the recent ‘thing’ in the cities and towns. They provide quick economical and
across the counter which often is accompanied by beverages and ice cream. The Dhaba is
used not only by tourist but also by local citizens and mainly people whose are moving or on
duties in trucks, buses etc.. The concept of Dhaba is foreign but has been adopted to cater to
the Indian palate. Thus, along with items like rice, chicken and fish etc., the other items are
going to be served like Cutlet, Samosas, Dosas, Pow Bhaji, Fresh Juice, Sweets, Noodles and
Rolls etc. The market of Dhaba’s fast food is basically in the semi urban areas, the concept is
quite flexible. The Dhaba also likes to play dual role with fast food and with traditional
restaurant type of services. The demand for both is quite flexible in semi urban areas. The
villagers and surrounding people are habituated taking food with urban people. The villagers
basically prefer to take some kind of heavy dishes like rice or paratha. These types of Dhaba
have to serve all the requirements based on demand.
3. PRODUCT TARGET:
No. of Shifts : 2
Business Capacity : 50 customers per day
Working days : 300days
Annual business at : 50% ( 1
st
Year)
4. QUALITY CONTROL & STANDARD:
IS: 6074: 1971 code of practice for functional requirements of hotels, restaurants and
other food services establishments.
5. BASIS AND PRESUMPTION:
Unit shall be operating at 360 working days on double shift working basis.
The price of raw materials and equipments are included according to present
market price.
The depreciation is calculated on Straight-line method.
100
Prepared by Indian Institute of Entrepreneurship
6. FINANCIAL ASPECTS:
LAND & BUILDING:
Built up area of 400 sq. ft. will serve the purpose. The said requirement will taken as
rent
WATER ARRANGEMENT:
The water stores tank will be required; the water will be collected from municipality
or from locally available sources. a minimum recurring expenses is required.
UTENSILS & EQUIPMENTS:
Sl
1
Gas stove connection
2 nos. @Rs. 8000/-
16,000.00
2
Gas Stove with three in one &
two in one
2 Nons @ 3000/-
6,000.00
3
Refrigerator
1nos@Rs. 18,000/-
18,000.00
4
Cookery items
2sets@Rs. 3500/-
7,000.00
5
Water Filter
1 nos.@Rs. 8000/-
8,000.00
6
Cups & plates
50 pairs @Rs. 90/-
4,500.00
7
Trays
6 nos.@Rs. 600/-
8,000.00
8
Kitchen tools
LS
4,000.00
9
Mixer-Grinder
1 no. @Rs 7000/-
7,000.00
10
Water stores tank
1 non of 500 litre each
@4000/- each
4,000.00
11
Sink
02 numbers @ 2000/- each
with fitting
4,000.00
12
Hot Case
03 no @1500/-
4,500.00
13
Portable Generator Set
01
43,400.00
14
Contingencies ( mug, jug...
others utensils)
L/S
5,000.00
TOTAL
1,35,000.00
101
Prepared by Indian Institute of Entrepreneurship
OTHER FIXED ASSET Amount
1
Dinning Set: 4 [email protected]/- (Cane & bamboo with
chairs capacity 6 person )
8,000.00
2
Interior decorations of dining hall & Counter with local
materials
4,500.00
3
air cooler/ stand fan, lighting
15,000.00
4
Electrification.
10,000.00
TOTAL
37,500.00
PRELIMINARY & PREOPERATIVE:
Amount
Legal expenses.
1,500.00
1,500.00
TOTAL FIXED CAPITAL
Amount
1
LAND & BUILDING(Rented) @ 10/- per sq feet
Rented
2
WATER ARRANGEMENT
--------------
3
UTENSILS & EQUIPMENTS
1,35,000.00
4
OTHER FIXED ASSET
37,500.00
5
PRELIMINARY & PREOPERATIVE
1,500.00
TOTAL
1,74,000.00
102
Prepared by Indian Institute of Entrepreneurship
WORKING CAPITAL
(a)CONSUMABLES(approximately of 150 nos. per day)
1
Rice (all types)
The materials required for hotel are
general provisions, consumables,
groceries and vegetables. These can
be purchased in daily basis or in
weekly basis. The requirement is
60% on sales
2
Mustard oil
3
Ghee
4
Atta & maida
5
Dal (all types)
6
Green vegetables
7
Paneer
8
Sugar
9
Tea
10
Egg
11
Meat
12
Fish
13
Milk
14
Coffee
15
Spices
16
Contingencies
Total consumables
Rs. 60,000.00
103
Prepared by Indian Institute of Entrepreneurship
MANPOWER
Manpower
Nos
Month Salaries
Amount
1
Manager/Cook (self)
01
@7000.00
7,000.00
2
Helper
02
@ 6000/-
12,000.00
3
Attendance
02
@ 4000/-
8,000.00
4
Per equities
L/S
L/S
4000.00
Total
31,000.00
OTHER EXPENDITURE
Specification
Per Month
Per Annum
House Rent
5,000.00
60,000.00
Water bill
500.00
6000.00
Power
500.00
6000.00
Postage & Stationery
200.00
2400.00
Repair & Renewals
500.00
6000.00
Insurance
300.00
3600.00
Advertisement
400.00
4800.00
Internal Travel
200.00
2400.00
Total
7,600.00
91,200.00
104
Prepared by Indian Institute of Entrepreneurship
WORKING CAPITAL REQUIRED
Stock period
Amount
1
Consumables
one week
10,000.00
2
Manpower
one week
9,000.00
3
Other Expenditures
One Month
7,600.00
Total
26,600.00
TOTAL INVESTMENT
Building
Rented
Water arrangement
Arranged locally
Utensils
1,35,000.00
Other Fixed Asset
38,000.00
Preliminary & Preoperative Expenses
1,500.00
Working Capital requirement
26,600.00
Total
2,00,000.00
105
Prepared by Indian Institute of Entrepreneurship
MEANS OF FINANCE
( Considering Debt Equity Ratio is = 3:1 ) Rs in thousand
Sl
Particulars
Promoters
Contribution
Bank Loan
Total
i
Sources of Fund
50,000.00
1,50,000.00
2,00,000.00
ii
Total
50,000.00
1,50,000.00
2,00,000.00
(Interest subsidy @ 7% pa on loan amount under National Urban Livelihoods Mission
(NULM)
SALES REALIZATION:
The average sale realization is based on 40 customer’s daily @Rs.115/-/per person.
The daily sale is expected to be at Rs. 4600.00
The monthly sale will be Rs. 1,15,000.00
The yearly sale will be Rs. 13,80,000.00
106
Prepared by Indian Institute of Entrepreneurship
ANNEXURE – XXXXVII
PROJECTED PROFITABILITY STATEMENT
Rs. In thousand
SL
Particulars
1
st
Year
2
nd
Year
3
rd
Year
4
th
Year
5
th
Year
Capacity assumption
50%
55%
60%
65%
65%
A
Sales Realisation
1380
1518
1656
1794
1794
B
Expenditures
Consumables
720
792
864
936
936
Manpower
372
394
417
439
439
Other Expenses
91
97
102
108
108
C
Total Operating Cost
1183
1283
1383
1483
1483
D
Total Operating Profit (A-C)
197
235
273
311
311
E
Depreciation
26.00
22.00
19.00
16.00
14.00
F
Profit after Depreciation (D-E)
171.00
213.00
254.00
295.00
297.00
G
Interest
18.00
14.40
10.80
7.20
3.60
H
Profit after Interest &
Depreciation (F-G)
153
198.6
243.2
287.8
293.4
I
Marketing Expenses @ 3% on
Sales
41.4
45.54
49.68
53.82
53.82
J
Net Profit (H-J)
111.6
153.06
193.52
233.98
239.58
K
Cash flow (J+E)
137.6
175.06
212.52
249.98
253.58
107
Prepared by Indian Institute of Entrepreneurship
Annexure – XXXXVIII
Depreciation Schedule,
WDV Methods
(15% PA)
(Rs. In Thousands ‘000)
Sl
Items
1
st
year
2
nd
year
3
rd
year
4
th
year
5
th
year
A
Opening Stock
174.00
148.00
126.00
107
91.00
B
Depreciation
26.00
22.00
19.00
16.00
14.00
C
Closing Stocks
148.00
126.00
502.00
91.00
77.00
ANNEXURE-XXXXIX
REPAYMENT SCHEDULE
@ 15% PA
(Rs. In Thousands ‘000)
Year
01
02
03
04
05
Opening Balance
150.00
120.00
90.00
60.00
30.00
Principal
30.00
30.00
30.00
30.00
30.00
Interest
18.00
14.40
10.80
7.20
3.60
Closing Balance
120.00
90.00
60.00
30.00
----
108
Prepared by Indian Institute of Entrepreneurship
Annexure – XXXXX
Debt Service Coverage Ratio
(Rs. In Thousands ‘000)
1
st
year
2
nd
year
3
rd
year
4
th
year
5
th
year
A
INCOMES
(i)
Net Profit.
111.6
153.06
193.52
233.98
239.58
(ii)
Depreciation
26.00
22.00
19.00
16.00
14.00
(iii)
Interest
18.00
14.40
10.80
7.20
3.60
Total of (A)
155.6
189.46
223.32
257.18
257.18
B
COMMITMENT
(i)
Principal
30.00
30.00
30.00
30.00
30.00
(ii
Interest
18.00
14.40
10.80
7.20
3.60
Total of B
48
44.4
40.8
37.2
33.6
DSCR
2.32
3.45
4.74
6.91
7.65
Average DSCR
1:5.01
ANNEXURE-XXXXXI
CALCULATION OF SIMPLE PAY BACK PERIOD
(In Rs.Thousand)
Year
Cash Outflow
Cash Inflow
Cumulative C.I
00
200.00
-
01
-
111.60
111.60
02
-
153.60
265.20
03
-
193.50
458.70
04
-
233.98
692.62
05
-
239.58
932.26
Simple Payback Period of the project is 1.8 Years
109
Prepared by Indian Institute of Entrepreneurship
ANNEXURE-XXXXXII
BREAK EVEN POINT
(Based on 3
th
Year of operation)
(Rs. In Thousands
Sl
Year
1
2
3
4
5
Capacity
50%
55%
60%
65%
65%
A. Sales
1380.00
1518.00
1656.00
1794.00
1794.00
B. Variable Cost
(i)Raw materials
720.00
792.00
864.00
936.00
936.00
(ii)Variable Overheads
321.00
491.00
519.00
546.00
546.00
Total (B)
1041.00
1283.00
1383.00
1482.00
1482.00
C. Contribution:
339.00
368.00
414.00
461.00
461.00
D. Fixed Cost
(i)Depreciation
26.00
22.00
19.00
16.00
14.00
(ii) Interest
18.00
14.40
10.80
7.20
3.60
(iii) Fixed Overheads
140.00
145.00
160.00
180.00
180.00
Total (D)
184.00
181.40
189.80
203.20
197.60
BEP(D/CX100)
54.28%
49.93%
45.84%
44.08%
42.86%
110
Prepared by Indian Institute of Entrepreneurship
ANEXURE – XXXXXIII
RETURN ON INVESTMENT
(a)Return on Sales Ratio:
Net Profit X100/ Total Sales
Rs. 116600.00 X 100.00/
Rs.13,80,000.00
=8.45%
(b) Return on Total Investment
Net Profit X100/ Total Investment
Rs. 116,600.00 X 100.00/Rs.
2,00,000.00
=58.30%
