project report - edi-chennai finishing shop.pdf · 2016. 12. 30. · 142,...
TRANSCRIPT
PROJECT REPORT
On
WOOD FINISHING SHOP
Submitted by
K.SARAVANAN.BE.DCA
As part of requirement of The Training
under
New Entrepreneur cum-Enterprise Development Scheme
Government of Tamilnadu
Conducted by
Entrepreneurship Development Institute,Guindy,Chennai
Prepared by
Name :K.SARAVANAN
Address:VELLALAVIDUTHI
Mobile:9786495789
Email:[email protected]
Training at
ST.JOSEPH COLLRGE TRICHY
Financed by
CENTRAL BANK OF INDIA
KALLAKKOTTAI
TABLE OF CONTENT
Sl. No. Description Page No.
1. BUSSINESS PLAN 2-10
2. MARKET SURVEY 11-12
3. MACHINES QUOTATION 12-15
4. RAW MATERIAL PRICE EVIDENCE 16-18
5. SELLING PRICE EVIDENCE 19-20
6. QUALIFICATION & RESIDENTIAL PROOF 21-22
7. PART 1 REGISRIATION UNDER MSME 23-24
Executive Summary
Our project wood plannaring and produce wood furnitures like bero, kattil ,tining
tables,doors,furnitures boxes.Poject promoter is single ,k.saravanan BE,DCA ,I
have 5 yr experience in that field.Labours need 3 only,power need 12 HP,I will
achive the customer needs.
Location is my native village vellalaviduthi,gandarvakkottai,pudukkottai dt
Project loan is418000 for building and 421900 for machines, working capital is
16010.
BUSINESS PLAN
Name of Business Enterprises : SARAVANA WOOD FINISHING SHOP
Office Address
Door No 142
Street NORTH STREET
Area VELLALAVIDUTHI
City GANDARVAKKOTTAI
District Pudukkottai
State TamilNadu
Pincode 613301
Factory Address
Factory Door No 142
Factory Street NORTH STREET
Factory Area VELLALAVIDUTHI
Factory City GANDARVAKKOTTAI
Factory District Pudukkottai
Factory State TamilNadu
Factory Pincode 613301
Type of Industry Manufacturing
EM no 330221107409
Product Name WOOD FURNITURES
Consitution Proprietary
No of key persons involved 1
Name of Business Enterprises : SARAVANA WOOD FINISHING SHOP
Key Person 1
Title Thiru
Name SARAVANAN
Father/Husband Name KALIMUTHU
Age
Address 142
NORTH STREET Personal Finance
VELLALAVIDUTHI
Permanent Account
Number 1234
Telephone number
Do you have Bank
account Yes
Mobile number 9786495789 Bank name Central Bank of India
Educational background BE Branch KALLAKKOTTAI
Whether ration card
available Yes Bank address KALLAKKOTTAI
Whether voter identity
card available Account number 3379565594
Social status BC Account type Current Account
Employment of spouse Salaried – Private IFSC code
Qualification of spouse X Std Credit card Yes
Networth Statement
Assets (Rs.Lakhs)
Immovable Properties( Including Land and Building
) 20.00
Investment in Business Capital 0.00
Deposits with Banks/institutions 0.00
Gsecs/Bonds/NSC/NSS 0.00
Shares/Debentures ( Market Value ) 0.00
Life Insurance Policies ( Surrender Value ) 0.00
Value of Vehicles ( Market Value ) 0.00
Other Assets ( Incl. Jewellery ) 0.00
Total Assets 20.00
Liabilities 0.00
Loans Availed from Banks (Total Outstanding) 0.00
Other Liabilities 0.00
Total Liabilities 0.00
Networth 20.00
Property Location VELLALAVIDUTHI
Name of Business Enterprises : SARAVANA WOOD FINISHING SHOP
Project Cost (Rs.lakhs)
Land 0.00
Building 4.18
Plant and Machinery
Imported 0.00
Indigenous 4.22
Vehicles 0.00
Furniture and Fittings 0.00
Computers and office automation 0.00
Testing equipment 0.00
Other fixed assets 0.00
Erection/installation charges 0.00
Pre-operative expenses 0.00
Provision for contingencies 0.00
Working capital margin 0.75
Total Cost 9.15
Means of finance
Owners contribution 5.00%
Owners contribution 0.46
Loan from bank/other institutions 8.69
Total 9.15
Name of Business Enterprises : SARAVANA WOOD FINISHING SHOP
Fullfillment of statutory requirements
Requirements Status
1.Approval from Local Authority / body Obtained
2.Approval for Building Plan Obtained
3.Approval from Inspector of Factories Not Applicable
4.Approval from Electricity Board To be Obtained
5.Have you obtained Import and Export Code? Not Applicable
6.Sales Tax Registration Not Applicable
7.Service Tax Registration Not Applicable
8.Pollution Control Board Clearence Not Applicable
9.Registeration for Partnership/Company/Co-operative Society Not Applicable
Name of Business Enterprises : SARAVANA WOOD FINISHING SHOP
Personal strengths in the area of business
I have 5 years of relevant experience. I have handled sales,production,human resources and
finance in my previous assignment. None of my family members have experience in this
business. The raw material required for the business are 100 Cubic_Meter of WOOD and the
value is 6 lakhs. Raw materials are available in the local market.Raw materials are available in
credit and the terms of credit is 1000 days. The suppliers of the raw materials are RENARASU
MATHA TIMBER AMBAL TIMBER CHANDIRA TIMBER. The processes involved in
manufacturing the final product are WOOD PLANNARING CARPENTERING WOOD
POLISHING . For this business skilled manpower are required. I am confident of having
necessary manpower for the business. power requirement is 12 horse power per day. I do not
have any backup. I require 20 liters of water. I have adequate facility to draw water. I have
approval for the land and building . I conducted survey and based on the findings only and I am
trying to get into this business.The competitor in my district is SARATHA WOOD PLANNAR
SHOP THIRUMURUGAN WOOD PLANNAR SHOP. I sell the product through both
distributors/wholesalers and directly to customers. I do not have showrooms. I will take 1
month to deliver the first order. I will get repeat orders from the following companies: RASI
THANJAVUR, RAJA PUDUKKOTTAI and MEGA FUNITURES. We expect an order size to
the extent of Rs. 25 lakhs from them. I am confident of generating rupees 100 lakhs sales in
next three years. The unfinished product also has got market. The business potential for this
product is growing at stable rate in TamilNadu. The current market volume in Tamilnadu is 100
lakhs, in India is 1000 lakhs and in Export is 500 lakhs.
Name of Business Enterprises : SARAVANA WOOD FINISHING SHOP
Projected Profit & Loss Statement (Rs.Lakhs)
Mar-2016 Mar-2017 Mar-2018 Mar-2019 Mar-2020
Sales 18.22 22.35 26.08 27.94 29.80
Other Income 0.00 0.00 0.00 0.00 0.00
Closing Stock 4.79 5.89 6.87 7.36 7.85
Total Income 23.01 28.24 32.95 35.30 37.65
Raw Material Consumed 2.21 2.94 3.45 3.72 3.98
Wages 2.11 2.59 3.02 3.24 3.46
Power & Fuel 0.29 0.36 0.42 0.45 0.48
Rent 0.00 0.00 0.00 0.00 0.00
Other Manufacturing Costs 0.36 0.45 0.52 0.56 0.60
Administration Expenses 0.23 0.28 0.33 0.35 0.38
Selling & Distribution Expenses 0.36 0.45 0.52 0.56 0.60
Excise Duty 0.78 0.96 1.12 1.20 1.28
Depreciation 0.34 0.32 0.31 0.29 0.28
Finance Charges 0.43 0.75 0.54 0.32 0.11
Total Expenditure 7.11 9.10 10.23 10.69 11.17
Profit & Loss 15.90 19.14 22.72 24.61 26.48
Name of Business Enterprises : SARAVANA WOOD FINISHING SHOP
Projected Balance Sheet (Rs.Lakhs)
Mar-2016 Mar-2017 Mar-2018 Mar-2019 Mar-2020
Capital 0.45 0.45 0.45 0.45 0.45
Reserves & Surplus 15.90 35.04 57.76 82.37 108.85
Loan from Bank 6.88 5.16 3.44 1.72 0.00
Sundry Creditors 0.20 0.25 0.29 0.31 0.33
Total Liabilities 23.43 40.90 61.94 84.85 109.63
Fixed Assets 8.06 7.74 7.43 7.14 6.86
Sundry Debtors 3.04 3.73 4.35 4.66 4.97
Stock 4.79 5.89 6.87 7.36 7.85
Loans & Advances 0.00 0.00 0.00 0.00 0.00
Cash & Bank Balance 8.15 24.29 44.17 66.62 90.95
Total Assets 24.04 41.65 62.82 85.78 110.63
Name of Business Enterprises : SARAVANA WOOD FINISHING SHOP
Projected Cash Flow Statement
Mar-2016 Mar-2017 Mar-2018 Mar-2019 Mar-2020
Net Profit as per Tax 15.90 19.14 22.72 24.61 26.48
Add: Depreciation 0.34 0.32 0.31 0.29 0.28
Add: Capital Contribution 0.45 0.00 0.00 0.00 0.00
Add: Loan from Bank 8.60 0.00 0.00 0.00 0.00
Add: Increase in Sundry Creditors 0.20 0.05 0.04 0.02 0.02
Add: Decrease in Sundry Debtors 0.00 0.00 0.00 0.00 0.00
Add: Decrease in Stock 0.00 0.00 0.00 0.00 0.00
Total Inflow 25.49 19.51 23.07 24.92 26.78
Less: Purchase of Fixed Assets 8.40 0.00 0.00 0.00 0.00
Less: Repayment on Loan to Bank 1.72 1.72 1.72 1.72 1.72
Less: Increase in Sundry Debtors 3.04 0.69 0.62 0.31 0.31
Less: Decrease in Sundry Creditors 0.00 0.00 0.00 0.00 0.00
Less: Increase in Stock 4.18 0.96 0.85 0.44 0.42
Less: Loans & Advances 0.00 0.00 0.00 0.00 0.00
Total Outflow 17.34 3.37 3.19 2.47 2.45
Opening Balance 0.00 8.15 24.29 44.17 66.62
Surplus/Deficit 8.15 16.14 19.88 22.45 24.33
Closing Balance 8.15 24.29 44.17 66.62 90.95
Name of Business Enterprises : SARAVANA WOOD FINISHING SHOP
Ratios
Usual Norms Mar-2016 Mar-2017 Mar-2018 Mar-2019 Mar-2020
Current Ratio >1.33 79.90 135.64 191.00 253.68 314.45
Debt-Equity Ratio <2.00 0.42 0.15 0.06 0.02 0.00
Debt Service Coverage Ratio >1.5 7.60 8.05 10.29 12.22 14.53
TOL / TNW <3.00 0.43 0.15 0.06 0.02 0.00
Interest Coverage Ratio >2.00 37.98 26.52 43.07 77.91 241.73
Net Profit Margin(%) >5.00 87.27 85.64 87.12 88.08 88.86
Name of Business Enterprises : SARAVANA WOOD FINISHING SHOP
Interest & Loan Repayment Schedule (Rs.Lakhs)
Mar-2016 Mar-2017 Mar-2018 Mar-2019 Mar-2020
Opening Balance 0.00 6.88 5.16 3.44 1.72
Receipt 8.60 0.00 0.00 0.00 0.00
Total 8.60 6.88 5.16 3.44 1.72
Repay 1.72 1.72 1.72 1.72 1.72
Closing Balance 6.88 5.16 3.44 1.72 0.00
Average 3.44 6.02 4.30 2.58 0.86
Interest 0.43 0.75 0.54 0.32 0.11
Name of Business Enterprises : SARAVANA WOOD FINISHING SHOP
Working Capital (Rs.Lakhs)
Mar-2016 Mar-2017 Mar-2018 Mar-2019 Mar-2020
Stock 4.79 5.89 6.87 7.36 7.85
Sundry Debtors 3.04 3.73 4.35 4.66 4.97
Loans & Advances 0.00 0.00 0.00 0.00 0.00
Cash & Bank Balance 8.15 24.29 44.17 66.62 90.95
Total Current Assets 15.98 33.91 55.39 78.64 103.77
Sundry Creditors 0.20 0.25 0.29 0.31 0.33
Salaries & Wages 0.18 0.22 0.25 0.27 0.29
Power & Fuel 0.02 0.03 0.04 0.04 0.04
Working capital 15.58 33.41 54.81 78.02 103.11
BUSINESS PLAN MANUAL WORK
1.0
Name of the Firm SARAVANA WOOD FINISHING SHOP
Name of business/project
WOOD PLANNARING ,WOOD FURNITURES AND ALL WOOD WORKS
Location VELLALAVIDUTHI Type of Organization (Proprietary/Partnership)
Proprietary
Address (with Phone,e-mail)
142, vellalaviduthi,Gandarvakkottai ,Pudukkottai 613301 ,9786495789
Name of the Chief K.SARAVANAN
Promoter(s)
Date of Birth 18/06/1993 Names of Partners
1.1. Educational Qualification:
Course (from SSLC/Diploma)
School/University/Institute Major Subject
Yr. of Passing
BE SHANMUGANATHAN ENGG COLLEGE MECH 2010-2014
1.2. Special Training:
Training in Institute Duration Achievment/Remark
EDI ST.JOSEPH COLLEGE
10/11/2014-11/12/2014
1.3. Work experience (Past & Present):
Organisation Position Nature of work Duration
OWN CARPENTER WOOD WORKS 5 YEARS
1.4
Promoter’s Annual Income (Last Year) 2 Lakhs Assets owned by the promoter (s) Movable
Immovable 20 lakhs
1.5 COMPANY’S MAIN OBJECTIVE (Why does the company exist?):
Satisfied customer by our product
1.6. FINANCIAL GOALS:
a. To have a sales revenue amounting to Rs. 2 cr by3 years
b. To obtain a profit margin of …75………..% c. To obtain a profit per business partner of Rs.
1.7 DESCRIPTION OF THE PRODUCT or SERVICE:
Wood planning, wood furnitures, all wood works
1.8 IDENTIFICATION OF THE CUSTOMERS:
1.Raja furnitures pudukkottai 2. Rasi furnitures
Needs satisfied by the product or service: Wood works
1.9. IDENTIFICATION OF THE COMPETITION (Major competitors):
1.thirumurugan wood works 2.Saratha wood works
Strengths/weakness of the competition:
Strength Weakness
Labours timing, Price, design
1.10. ADVANTAGES AND DISADVANTAGES OF THE PRODUCT AND YOUR
COMPANY
Price Reasonable price Quality : high quality
Terms of Deliver : Door delivery Payment Method : Instalment
Customer Service : fulfill the customer needs
Others:
1.11. MESSAGE TO BE COMMUNICATED TO THE CUSTOMERS:
Come and take your choise
1.12. MARKETING AND MEANS OF COMMERCIALIZATION:
Present demand & supply
Demand for good desining furnitures
Competition
Target clients Marriage timing ,all delor Marketing strategy (USP)
76%
1.13. Manufacturing Process:
Technical know-how availability
Step-by-step description of the manufacturing process (raw material-finshed goods)
1.14. ProductionProgramme:
No. of woking days/annum 288
No. of working shifts (8hrs)/day 2 Installed capacity (annual) 400
Utilised capacity (%) Year - I 50 Year - II 60 Year - III 70
S.No Item(s) Quantity Produced/Yr
Capacity Utilisation(%)
1 Bero 100 50
2 Kattil 100 60
3 doors 100 70 4 Furniture box 100 80
2.0 Details of the Proposed Project:
2.1 Land and Building:
S.No Particulars Area required Total value Remarks
1 Land
2 Building 10 cent 418000 TOTAL
2.2. Machineries/Equipments:
S.No Description Nos. required Rate (Rs) Total value(Rs)
1 Plannar machines 2 200000 2 Router 1 100000
3 Others 6 121900 4 Total 9 421900
2.3. Misc. Fixed Assets:
S.No Particulars Nos.required Rate (Rs) Total value(Rs)
2.4. Preliminary and Pre-operative Expenses:
S.No
Particulars Amount (Rs) Remarks
1 Interest during implementation
390000
2 Establishment expenses
3 Start-up expenses 4 Misc. expenses
Total 390000
2.5. Working Capital:
S.No Item Duration Total Value (Rs)
Ist YR IInd YR
IIIrd YR
IVth YR
Vth YR
1. Raw-material stock 1 month 4.79 5.89 6.87 7.36 7.85
2 Semi-finished goods 1 month 3.04 3.73 4.35 4.66 4.97 3 Finished goods
stock
1month 8.15 24.29 44.17 66.62 90.95
4 Sales on credit
1month 0.20 0.25 0.29 0.31 0.33
5 Production expenses
1month 0.18 0.22 0.25 0.27 0.29
6 Total 15.58 33.41 54.81 78.02 103.11
2.6. Total Cost of the Project:
S.No Particulars Total value (Rs)
1 Fixed Capital (sum of 2.1+2.2+2.3) 839000 2 Working Capital (Sum of 2.5) 1558000
3 Preliminary & Preoperative Expenses (sum of 2.4)
390000
Total
2.7. Means of Finance:
S.No Particulars Amount (Rs) Remarks
1 Own Investment/Equity 50000 2 Term Loan 950000
3 Working capital Loan 4 Any other source (subsidy etc)
Total 1000000
3.1. Sales Revenue: (Please refer item No. 5.1 (Pricing)
S.No Items (s) Quantity Sold/Yr
Rate/Unit (Rs) Sales Realisation (Rs)
1 Bero 15 25000 375000 2 Kattil 20 25000 500000
3 Doors 20 25000 500000 4 box 20 22350 447000
Total 75 97350 1822000
4.1. Raw material (annual) Requirement:
S.No Item (s) Quantity Rate (Rs) Total value (Rs)
1 wood 1000 cube feet
221 221000
Total
4.2. Utilities:
S.No Particulars Annual Expenditure
Remarks
1 Power/electricity 36000
2 Water 5000 3 Coal/Oil/Steam
4 Transport 10000
5 Any other item Total 51000
4.4. Man Power (Salaries/Wages):
S.No Particulars No. Wages/Salary p.m (Rs)
Annual expenses (Rs)
1 Skilled 2 16000 192000
2 Semi-skilled 1 5000 60000 3 Unskilled
4 Office staff
5 Anyother Total 3 21000 252000
4.5 Repairs and Maintenance:
S.No Particulars Amount (Rs)
Machines 10000
4.6. Selling and Distribution Expenses:
S.No Particulars Amount (Rs) Remarks 1 Publicity expenses 10000
2 Traveling 5000 3 Freight
4 Commission
5 Misc. Total
4.7. Administrative Expenses:
S.No Particulars Amount (Rs) Remarks
1 Stationery & Printing 2 Post/telephone
3 Entertainment Expenses 4 Miscellneous
Total
4.8. Interest:
Year Loan amount Outstanding (Rs)
Interest (Rs) Installment (Rs)
Balance (Rs)
2015-2016
1000000 120000 200000 800000
2016-2017
800000 104000 200000 600000
2017-2018
600000 78000 200000 400000
2018-2019
400000 52000 200000 200000
2019-2020
200000 26000 200000 0
Total
4.9. Depreciation:
S.No Type of Asset Cost of Asset Expected Life Depreciation
machines 421000 10 yr 10000
5.1. Pricing:
Product 1 Amount
Product 2 Amount
Product3 Amount
Total product cost per unit (fixed cost/unit+variable /unit)+tax
Bero (15000+5000)+1000
Kattil (10000+5000)+750
Box (15000+1000)+1250
Desired Profit 2000 2000 2000 Sale Price (including tax)
23000 17750 28250
Profitability Projections:
S.No
Particulars Amount (Rs)
Year-1
Year-2
Year-3
Year-4
Year-5
A Sales realization 18.22 22.35 26.08 27.94 29.80 B Cost of producing
1 Raw materials 2.21 2.94 3.45 3.72 3.98
2 Utilities 0.29 0.36 0.42 0.45 0.48
3 Salaries/wages 2.11 2.59 3.02 3.24 3.46 4 Repairs & maintenance 0.36 0.45 0.52 0.56 0.60
5 Selling& distribution expenses 0.36 0.45 0.33 0.38 0..35 6 Administrative expenses 0.23 0.28 0.54 0.32 0.11
7 Interest 0.43 0.75 0.55 0.77 0.88 8 Rent
9 Misc. expenses
TOTAL –B (1 TO 9) 5.99 7.82 8.878 9.2 9.61 C Gross Profit/Loss (A-B) 12.23 14.43 17.28 18.14 20.19
D Less: Depreciation 0.34 0.32 0.31 0.29 0.28 E Income-tax 0.911 1.11 1.30 1.39 1.49
F Net profit/loss (C- (D+E) 10.97 13.0 15.67 16.46 18.42
G Repayment 1.72 1.72 1.72 1.72 1.72 H Retained surplus
Attach P/L Projections, Balance Sheet Projections, Cash Flow Projections
generated through soft
MARKET SURVEY
SARAVANA WOOD WORKS
1. NAME:
2. ADDRESS:
3. MOBILE NUMBE :
PRODUCT DETAILS:
1. Reason for selling wood furnitures?
a .strength b.design c.finishing d.others
2 . willing for buying wood or plywood furnitures?
a . wood b . plywood
3 . prices of furnitures available for you now?
a .yes b . no
4 . How will promote our project?
a .tv b . notice c .flux d. Others
5 . How will delivery to you?
a . door delivery b . direct purchase c .others