Download - textile
INTRODUCTION
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
Bio data of Promoter
Hirpara Nishit H. (B.B.A.)Bhikadiya Piyush (B.B.A.)Bhavsar sumit (B.B.A.)
Experience of Promoter
Nishit hirpara
Part time working in his father’s factory since 10th slandered,Tally accounting course in aptech computer education.Take summer training in CHALTHAN SUGAR FACTORY for three months.
Piyush bhikhadiya
Take summer training in KAMREJ SUGAR FACTORY for three months.
Bhavsar sumit
Take summer training in KAMREJ SUGAR FACTORY for three months.
ORGANIZATION
This firm is a partnership firm. There are three partners in this firm. And there is no planning add more partner in future.
PRODUCT DETAIL
1. French crap2. Bnarasi3. Jari brocket4. Kashturi
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
PHOTOGRAPH OF MACHINARY
POWER LOOM
JACQUARD
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
MARKETPOTENTIAL
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
MARKET AREA
SURAT, GUJARAT
MARKETING SYSTEM
The whole marketing done through broker chain system.
ADVERTISEMENT
In NEWS PAPER advertisement are given or attach some chits or paper with it.
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
TECHNICAL
ASPECTS
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
RAW MATERIAL
A. French crap
Warp: 75/72, semidal size beam
Waft: 75/72, crap
B. Banarasi
Warp: 68/48, semidal nylon beam
: 75/36, champion bright
Waft: 110/48, died bright
C. Jari brocket
Warp: 68/48, semidal nylon beam
Waft: 110/48, champion bright
: 50/100, kasab jari ( holo twist )
D. Kashturi
Warp: 60/100, semidal size beam
Waft: 75/72, crap
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
LOCATION AND SITE ADDRESS
Our firm located at pipodra G.I.D.C., KIM,
TA: MANGROL, DIST: SURAT
Our site address is
Block no.125, 15/16, ABCDE, vibhuti industries, pipodra G.I.D.C., KIM
PLANT CAPACITY
FOR 48 looms
50 meters/ machine/ day ( two ship )
x 48 m/c
2400 meters/ day
x 25 days ( working days )
60000 meters/ month
x 12 months
720000 meters/ year
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
PLANT LAY-OUT
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
PRODUCTION LAY-OUT WITH PROCESS
A loom is a machine or device for weaving thread or yarn into textiles. Looms can range from very small hand-held frames, to large free-standing hand looms, to huge automatic mechanical devices.
In practice, the basic purpose of any loom is to hold the warp threads under tension to facilitate the interweaving of the weft threads. The precise shape of the loom and its mechanics various, but the basic function is the same.
Entrepreneurship Development And Small Business Management
TRANSPORT
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
POLLUTION CONTROL
There is no any major pollution factor which is used in this factory. There is no pollution in this firm.
POWER
Power Supply Company: Gujarat electric board
HP: 55
Gas:NA
Power consumption:
48 (power loom + jacquard) m/c x 075 h.p. =36 h.p.
2 (waft) m/c x 0.75 h.p. =1.5 h.p.
2 (T.F.O.) m/c x 5 h.p. =10 h.p.
1 (winding) m/c x 2 h.p. =2 h.p.
1 (warping) m/c x 2.5 h.p. =2.5 h.p.
1 (grinder) m/c x 0.75 h.p. =0.75 h.p.
1 (drill) m/c x 0.75 h.p. =0.75 h.p.
TOTAL =55 H.P.
TECHNOLOGY
Power Loom With Jacquard ( 600 Hook )
3600,4800,6000,7200,8400,9600
T.F.O.
Up gradation machine Hi-speed
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
CAPACITY OF PLANT:
60,000 meters/ month,
7,20,000 meters/ year
COMMUNICATION SYSTEM:
The whole communication system work on the LAND LINE PHONE OR
MOBILE.
Every member of the office have one one mobile & every department have a one separate land line phone and every land line phone were connected with each other. So, communication channel will be easy for office work.
So, this way the communication channel will work in our firm.
TRANSPORT FACILITY:
The distance between the site and market is near about 25 k.m. and the finished goods weight is so heavy so, LOCAL TEMPO AND TRUCK is used for the transport facility.
OTHER COMMON FACILITY:
The other facilities like toilet, wash room, rest room, waiting room, etc are there.
VALUE ADDITION:
On every Wednesday, we will give one time snakes to every workers.If any one want more salary in advance than on the basis of his credit or performance we will help them out.
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
IMPLEMENTATION
SCHEDUEL
IMPLEMENTATION SCHEDUEL
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
TASKS / MONTHS1 2 3 4 5 6 7 8 9 10 1
112 1
314
1. Formulation of Project Report
2. Application for Term-Loan
3 Term-Loan Sanction
4. Possession of Land
5. Construction of Building
6. Getting Power and Water
7. Placing Order for Machinery
8. Receipt & installation of machinery
9. Manpower Recruitment
10.Trial Production
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
FINANCIAL
ASPECTS
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
COST OF PROJECTCOST OF PROJECT
Particulars Amount (Rs.)
Power Looms 30,00,000
Land 22,67,650
Other Fixed Assets 84,68,425
Total 1,37,36,075
MEANS OF FINANCEMEANS OF FINANCE
Particulars Amount (Rs)
Bank Loan 1,08,00,000
Partner 25,00,000
Friends 4,36,075
Total 1,37,36,075
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
COMPLETE CALCULATION WITH CURRENT DATA ( APPROXIMATE )
Land
Size: 85 feet x 82 feet ( for 5 sad’s ) = 6970 square feet
245/- rs/ s.q.feet x 6970 s.q.feet = 17,07,650/- rs
Land price 1707650
Stamp duty 310000
Advocate fees 50000
Land leavening ( road, drainage ) 200000
Total 2267650
Building
425 rs/ s.q.feet of 18 feet hight slab with R.C.C. beam, Colum, wall structure with majenine
6275 build up area X 425 rs/ s.q.feet
= 2666000 rs
Height 12 feet 6275 s.q.feet
X 275 rs/ s.q.feet
= 1725625 rs
Total cost of building
= ground floor + first floor + second floor
=2666000 + 1725625
=4391625 Rs.
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
Cost of machinery
Power loom 48 m/c x 62500 Rs/ loom (including tax )= 3000000
Jacquard(with driver chain)
48 m/c x 55000 Rs/ j.c. ( including tax )= 2640000
I-gudder 48 m/c x 4850 Rs/ gudder ( 4”x 8”x 18 feet ) = 232800
Waft machine2 m/c x 75000 / m/c = 150000
T.F.O. (540 spindle / m/c)
2 m/c x 297000 / m/c = 594000
Winding machine ( 48 spindle )
1 m/c x 150000 = 150000
Warping machine1 m/c x 300000 = 300000
Grinder machine 1 m/c x 5000 = 5000
Drill machine 1 m/c x 5000 = 5000
Electric fitting
Power loom( j.q.+waft)48 m/c x 2200rs (fitting with all equipment )
= 105600
T.F.O. 2 M/C X 12500 = 25000
Warping 1 m/c x 5000 = 5000
Total = 135600
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
Electric quotation
GEB charges + security deposits + wire + pole + transformer + service wire
= 220000 Rs
Millgian assessarise
A) Power loomEle. Motor > 3000Other > + 2000 5000/ x 48 m/c = 240000
B) Waft machineMotor > 3000/- x 2 motor = 6000Other > = 8200 = 14200
C) Jacquard machine Nylon threats (7 k.g ) V – hook Nikod threats Loods Fiber & fiber frame C – ring Wire healds Lingush Guide board Warmish = 12000 / m/c x 48 m/c
= 576000
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
D) T.F.O. Cops > 1100 x 2 = 2200 x 20 rs
= 44000
Plastis rolls > 1100 x 2 = 2200 x 25 rs = 55000
E) Worping machine
Belt > = 3000Beam pipe > 72 x 1400 rs = 100800(with tread) Beam pipe > 72 x 350 rs = 25200(plane pipe ) = 129000
OTHER Fixed assets
Weight scale = 12000/-
Folding table = 5000/-
Mending table = 3000/-
Fan ( 10 pec x 1400 ) = 14000/-
2 wheel ( 2 x 51000 ) = 102000/-
1 cycle = 2500/-
Hand cart ( 4 x 2000 ) = 8000/-
Lift = 150000/-
Telephone ( 4 x 2500 ) = 10000/-
Furniture = 150000/-
Office stationary = 7000/-
Water pump + boring + motor + plastic water tank
= 20000/-
Total = 483500/-
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
Changes in Working Capital RequirementChanges in Working Capital Requirement
Particulars 2009-10 2010-11 Change in WC
Increase Decrease
Current Assets:
Stocks 5,00,000 6,50,000 1,50,000 ….
Debtors 17,00,000 18,20,000 1,20,000 ….
Cash & Bank 1,50,000 1,75,000 25,000 ….
Bills Receivable 1,80,000 2,50,000 70,000 ….
Total {A} 25,30,000 28,95,000
Current Liabilities:
Creditors 8,90,600 9,00,000 …. 9,400
Bills Payable 2,09,000 1,95,000 14,000 ….
Total {B} 10,99,600 10,95,000
Working Capital {A-B} 14,30,400 18,00,000 …. ….
Increase In WC 3,69,600 …. …. 3,69,600
Total 18,00,000 18,00,000 3,79,000 3,79,000
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
PROJECTED PROFITABILITY STATEMENT:
Particulars Rs.(per meter)
Cost of Product 15.74
Labor + other expenses 6
Interest 2
Production Cost 23.74
Selling Cost 28.50
Production Cost 23.74
NET PROFIT 4.76
Net Profit (Per Year) = 7, 20,000 X 4.76
= 34, 27,200 Rs.
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
Trading and Profit & Loss AccountTrading and Profit & Loss Account
Particulars 2009-10 2010-11 Particulars 2009-10 2010-11
Purchase1,13,40,000
1,16,55,000
Sales2,05,20,000
2,10,90,000
Wages 43,20,000 44,40,000 Closing Stock 5,00,000 6,50,000
Transportation 90,000 95,000
Gross Profit 52,70,000 55,50,000
Total2,10,20,000
2,17,40,000
Total2,10,20,000
2,17,40,000
Interest 16,20,000 16,20,000 Gross Profit 52,70,000 55,50,000
Depreciation 10,43,310 10,45,060
Ele.Fitting 1,35,600 1,50,600
Ele.Quatation 2,20,000 2,25,000
Milligian 10,58,200 10,88,200
Loading 20,000 25,000
Fitting Expe. 1,20,000 1,25,000
Other Expenses 1,53,600 1,63,600
Net Profit Before Tax
25,19,290 26,27,540
Tax (12%) 3,02,314 3,15,304
PAT 22,16,976 23,12,236
Total 52,70,000 55,50,000 Total 52,70,000 55,50,000
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
Balance SheetBalance Sheet
Liabilities 2009-10 2010-11 Assets 2009-10 2010-11
Share Capital: Fixed Assets1,37,36,075
1,33,40,397
Capital 25,00,000 25,00,000 (-) Depreciation 10,43,310 9,21,972
NPAT 22,16,976 23,12,236 Net Block1,26,92,765
1,24,18,425
Secured Loans:
Investment 13,70,000 13,80,000
Bank Loan1,08,00,000
1,08,00,000
Current Assets:
Current Liabilities: Stock (Closing) 5,00,000 6,50,000
Creditors 8,90,600 9,00,000 Debtors 17,00,000 18,20,000
Bills Payable 2,09,000 1,95,000 Bills Receivable 1,80,000 2,50,000
Cash & Bank Balance
1,50,000 1,75,000
Misce.Expe. 23,811 13,811
Total1,66,16,576
1,67,07,236
Total1,66,16,576
1,67,07,236
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
Annexure: - 1 {Year 2009-10}
Fixed Assets Before Dep. Amount Depreciation After Dep. Amount
Land 22,67,650 3,40,147.5 19,27,502.5
Building 43,91,625 4,39,162.5 39,52,462.5
Power-looms 30,00,000 …. 30,00,000
jacquard 26,40,000 2,64,000 23,76,000
Gudder 2,32,000 …. 2,32,000
Waft Machine 1,50,000 …. 1,50,000
TFO machine 5,94,000 …. 5,94,000
Winding Machine 1,50,000 …. 1,50,000
Warping Machine 3,00,000 …. 3,00,000
Grinder + Drill 10,000 …. 10,000
Total 1,37,36,075 10,43,310 1,26,92,765
Annexure: - 2 {Year 2010-11}
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
Fixed Assets Before Dep. Amount Depreciation After Dep. Amount
Land 19,27,502.5 2,89,125.375 16,38,377.125
Building 39,52,462.5 3,95,246.25 35,57,216.25
Power-looms 30,00,000 …. 30,00,000
jacquard 23,76,000 2,37,600 21,38,400
Gudder 2,32,000 …. 2,32,000
Waft Machine 1,50,000 …. 1,50,000
TFO machine 5,94,000 …. 5,94,000
Winding Machine 1,50,000 …. 1,50,000
Warping Machine 3,00,000 …. 3,00,000
Grinder + Drill 10,000 …. 10,000
Total 1,33,36,075 9,21,972 1,24,18,425
Fund Flow StatementFund Flow Statement
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
SourcesSources AmountAmount ApplicationApplication AmountAmount
Purchase ofPurchase of plant & FAplant & FA
2,74,3402,74,340 Increase in WCIncrease in WC 3,69,6003,69,600
Fund FromFund From OperationOperation
95,26095,260
TotalTotal 3,69,6003,69,600 TotalTotal 3,69,6003,69,600
CALCULATION OF RATIO
1.1. Current Ratio = Current Ratio = Current assets Current assets
Current Liability Current Liability
Current assets = Inventories + Sundry Debtors + Cash and BankCurrent assets = Inventories + Sundry Debtors + Cash and Bank
Balance + Loans and Advances Balance + Loans and Advances
Current Liability = Liability + ProvisionCurrent Liability = Liability + Provision
2009 - 102009 - 10 2010 - 112010 - 11
= = 25,30,00025,30,000
10,99,600 10,99,600
= = 28,95,00028,95,000
10,95,00010,95,000
= 2.30 : 1= 2.30 : 1 = 2.64 : 1= 2.64 : 1
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
2.2. Quick ratio: Quick ratio: = = Quick assetsQuick assets
Quick liabilities Quick liabilities
Quick assets = Current assets – stockQuick assets = Current assets – stock Quick liability = Current liabilities – Bank over Draft Quick liability = Current liabilities – Bank over Draft
2009 - 102009 - 10 2010 - 112010 - 11
= = 25,30,000 – 5,00,00025,30,000 – 5,00,000
10,99,600 – 00 10,99,600 – 00
= = 20,30,00020,30,000
10,99,600 10,99,600
= = 28,95,000 – 6,50,00028,95,000 – 6,50,000
10,95,000 – 00 10,95,000 – 00
= = 22,45,00022,45,000
10,95,000 10,95,000
= 1.85 : 1= 1.85 : 1 = 2.05 : 1= 2.05 : 1
3. Gross profit ratio 3. Gross profit ratio = = Gross ProfitGross Profit 100100
Net sales Net sales
Gross Profit = Net sales – COGSGross Profit = Net sales – COGS COGS = Raw Material & goods Consumption + Manufacturing ExpensesCOGS = Raw Material & goods Consumption + Manufacturing Expenses
2009 - 102009 - 10 2010 - 112010 - 11
= = 52,70,000 52,70,000 100100
2,05,20,000 2,05,20,000
= = 55,50,000 55,50,000 100100
2,10,90,000 2,10,90,000
= 25.68%= 25.68% = 26.32%= 26.32%
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
4. Net profit Ratio 4. Net profit Ratio = = Net profit after taxNet profit after tax 100100
Net sales Net sales
2009 - 102009 - 10 2010 - 112010 - 11
= = 22,16,976 22,16,976 100100
2,05,20,000 2,05,20,000
= = 23,12,236 23,12,236 100100
2,10,90,000 2,10,90,000
= 10.80%= 10.80% = 10.96%= 10.96%
5.5. Debt Service Coverage RatioDebt Service Coverage Ratio :- :-
PAT + Depreciation + Other non-cash charges + Interest on term loanPAT + Depreciation + Other non-cash charges + Interest on term loan
Interest on term loan + Repayment of term loan Interest on term loan + Repayment of term loan
Year : 2009 - 10Year : 2009 - 10
= = 22,16,976 + 10,43,310 + 16,20,00022,16,976 + 10,43,310 + 16,20,000
16,20,000 + 21,60,000 16,20,000 + 21,60,000
= = 48,80,28648,80,286
37,80,000 37,80,000
= 1.29= 1.29
Year : 2010 - 11Year : 2010 - 11
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
= = 23,12,236+ 10,45,060 + 16,20,00023,12,236+ 10,45,060 + 16,20,000
16,20,000 + 21,60,000 16,20,000 + 21,60,000
= = 49,77,29649,77,296
37,80,000 37,80,000
= 1.32= 1.32
6. Return on investment ratio
= NET PROFIT AFTER TAX
TOTAL INVESTMENT
2009 - 102009 - 10 2010 - 112010 - 11
= = 22,16,976 22,16,976
13,70,000 13,70,000
= = 23,12,23623,12,236
13,80,000 13,80,000
= 1.62= 1.62 = 1.68= 1.68
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
MAN
POWER REQUIREMENT (HUMAN RESOURCES)
MAN POWER REQUIREMENT ( 2 ship )
48 m/c > 24 + 2 ( master )
2 m/c ( waft )
= 26
= 4
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
2 m/c (T.F.O.)
1 m/c ( winding )
1 m/c ( warp )
Swipper
Helper
Supervisor
Manager
= 4
= 2
= 1
= 1
= 1
= 2
= 1
Total = 42 people
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
LIST OF LICENSE
FROM
GOVERMENT
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
LICENSE REQUIRED FROM GOVERNMENT
1. POWER LOOM PERMIT
2. GUMASHTA DHARA LICENSE
3. SALES PERMITION
4. SSI REGESTRATION LICENSE
5. RAJA CHITTHI
6. STATE SALES TAX LICENSE
PROJECT EXPERIENCE
Entrepreneurship Development And Small Business Management
B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION
While preparing this project we can get the idea about what we would do in future when we make plan for doing this type of project.
The other thing is the experience; we got wonderful experience, now we have clear concept on small scale industries.
This type of project will help us in future. It means it teaches us that how we can calculate cost of our product and project.
So, it was a great experience for us.
Entrepreneurship Development And Small Business Management