PROJECT REPORT - Edi-Chennai FINISHING SHOP.pdf · 2016. 12. 30. · 142,...

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


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


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


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


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.


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


Projected Balance Sheet (Rs.Lakhs)


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


Projected Cash Flow Statement


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


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


Interest & Loan Repayment Schedule (Rs.Lakhs)


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


Working Capital (Rs.Lakhs)


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

PROJECT REPORT - Edi-Chennai FINISHING SHOP.pdf · 2016. 12. 30. · 142,...

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