Wood Finishing Shop PDF

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:woodworkssaravana@gmail.com
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
Permanent Account
VELLALAVIDUTHI 1234
Number
Do you have Bank

Telephone number Yes
account
Mobile number 9786495789 Bank name Central Bank of India
Educational background BE Branch KALLAKKOTTAI
Whether ration card

Yes Bank address KALLAKKOTTAI
available
Whether voter identity

Account number 3379565594
card available
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 WOOD PLANNARING ,WOOD FURNITURES AND ALL WOOD
business/project WORKS
Location VELLALAVIDUTHI
Type of Organization Proprietary
(Proprietary/Partnership)
Address (with Phone,e- 142, vellalaviduthi,Gandarvakkottai ,Pudukkottai
mail) 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 School/University/Institute Major Yr. of

SSLC/Diploma) Subject Passing
BE SHANMUGANATHAN ENGG COLLEGE MECH 2010-2014
1.2. Special Training:
Training in Institute Duration Achievment/Remark
EDI ST.JOSEPH 10/11/2014-

COLLEGE 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 Demand for good desining furnitures

& supply
Competition
Target clients Marriage timing ,all delor
Marketing 76%
strategy (USP)
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:
Particulars Amount (Rs) Remarks

S.No
1 Interest during 390000
implementation
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 IIIrd IVth Vth YR

YR YR 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 1month 8.15 24.29 44.17 66.62 90.95
stock
4 Sales on credit 1month 0.20 0.25 0.29 0.31 0.33

5 Production 1month 0.18 0.22 0.25 0.27 0.29
expenses
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 390000
(sum of 2.4)
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 Rate/Unit (Rs) Sales

Sold/Yr 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 221 221000
feet
Total
4.2. Utilities:
S.No Particulars Annual Remarks

Expenditure
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 Annual

p.m (Rs) 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:

1 Publicity expenses 10000
2 Traveling 5000
3 Freight
4 Commission
5 Misc.
Total
4.7. Administrative Expenses:

1 Stationery & Printing
2 Post/telephone
3 Entertainment Expenses
4 Miscellneous
Total
4.8. Interest:
Year Loan amount Interest (Rs) Installment Balance (Rs)

Outstanding (Rs) (Rs)
2015- 1000000 120000 200000 800000
2016
2016- 800000 104000 200000 600000
2017
2017- 600000 78000 200000 400000
2018
2018- 400000 52000 200000 200000
2019
2019- 200000 26000 200000 0
2020
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 Product 2 Product3

Amount Amount Amount
Total product Bero Kattil Box
cost per unit (15000+5000)+100 (10000+5000)+75 (15000+1000)+125
(fixed 0 0 0
cost/unit+variabl
e /unit)+tax
Desired Profit 2000 2000 2000
Sale Price 23000 17750 28250
(including tax)
Profitability Projections:
S.N Particulars Amount (Rs)

o
Year- Year- Year- Year- Year-
1 2 3 4 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

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PROJECT REPORT

WOOD FINISHING SHOP

As part of requirement of The Training

New Entrepreneur cum-Enterprise Development Scheme

Entrepreneurship Development Institute,Guindy,Chennai

ST.JOSEPH COLLRGE TRICHY

CENTRAL BANK OF INDIA

Sl. No. Description Page No.

Name of Business Enterprises : SARAVANA WOOD FINISHING SHOP

Street NORTH STREET

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

No of key persons involved 1

Name of Business Enterprises : SARAVANA WOOD FINISHING SHOP

Father/Husband Name KALIMUTHU

NORTH STREET Personal Finance

Do you have Bank

Mobile number 9786495789 Bank name Central Bank of India

Educational background BE Branch KALLAKKOTTAI

Whether ration card

Whether voter identity

Social status BC Account type Current Account

Qualification of spouse X Std Credit card Yes

Immovable Properties( Including Land and Building

Investment in Business Capital 0.00

Deposits with Banks/institutions 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

Loans Availed from Banks (Total Outstanding) 0.00

Other Liabilities 0.00

Total Liabilities 0.00

Property Location VELLALAVIDUTHI

Name of Business Enterprises : SARAVANA WOOD FINISHING SHOP

Plant and Machinery

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

Owners contribution 5.00%

Owners contribution 0.46

Loan from bank/other institutions 8.69

Fullfillment of statutory requirements

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