PROJECT AT A GLANCE - TOP SHEET

1 Name of the Beneficiary Abdul Raheem

2 Constitution (legal Status) Individual :

3 Father's/Spouce's Name Abdul Farooq

4 Unit Address : 0
0
Taluk /Block : Bhainsa
District : Nirmal
Pin: 504103 State: Telangana
E-Mail : raheem726492
Mobile 6.303E+09
5 Product and By Product

6 Cost of Project : Rs. 5,78,491

Name of the project / business Boutique (Men's Ethnic Wear)
activity proposed :
7 Means of Finance
Term Loan Rs. 5,49,566.00
KVIC Margin Money Rs. 1,44,623.00
Own Capital Rs. 28925.00

8 Debt Service :
Coverage Ratio

9 Pay Back Period : 5 Years

10 Project : 2 Months
Implementation
Period

11 Break Even Point :

12 Employment : 5

13 Power Requirement : 8.HP

14 Major Raw materials : dresses fabric,readymade coat,readymade sherwani

15 Estimated Annual : Rs. 10620000.00

Sales Turnover
DETAILED PROJECT REPORT
1 INTRODUCTION :

This pre‐feasibility study provides information on key facets of starting a Boutique business for men,s ethnic
Wear. Growing number of boutiques have become an emblem of successful clothes business in India. Most
people especially men prefer them over ordinary garment brands. There has been a mushroom growth in men,s
ethnic wear boutiques since the last decade as they offer versatility and sophistication. This trend is not
confined to metropolis alone but has also spread to small cities and towns. The rise is attributed to a growing
middle class, exposure to media, entertainment, movies, internet and also to a fleet of qualified fashion
designers graduating from fashion schools every year. Aspiring fashion graduates or potential entrepreneurs may
find this growing sector a good prospect to capitalize on their potential, talent and market opportunity. In order
to facilitate the potential investors, this document provides the basic information regarding business operations
of apparel designing, manufacturing, marketing and selling of men’s wear in India.

2 ABOUT THE BENEFICIARY :

I am ABDUL RAHEEM and have very good experienc in stiching and desining filed . Since last three(3) years i,m
doing this work very nicely. My qualification is intermediat with mathamaticse after that i lerund

3 COST OF PROJECT
A. Fixed Capital Investment
a. Land : 450 sft Own

b. Workshed Area Sq.ft Rate in Rs. Amt. In Rs.

rented single floor shop 450 666.67 300001.50
0 0 0.00 0.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0 0.00 0.00
Total 300001.50
#REF!
C. Machinery Qty. Rate Amount in Rs.
jack stitching machine 2 28000.00 56000.00
juki machine 2 8500.00 17000.00
steam press machine 1 30000.00 30000.00
over lock machine 1 6500.00 6500.00
steam iron 4 3500.00 14000.00
mannequin 10 4500.00 45000.00
Scissors 6 1150.00 6900.00
camera 5 5000.00 25000.00
Cutting Scales and Measuring Scales 6 1200.00 7200.00
inverter with Battery for shop 1 15889.00 15889.00
0 0 0.00 0.00
0 0 0.00 0.00
Total 223489.00
d. Preliminary & Pre-operative Cost : Rs. 5000.00

e. Furniture & Fixtures : Rs. 30000.00

f. Contingency/Others/Miscellaneous : Rs. 20000.00

Total Capital Expenditure : Rs. 578490.50

Working Capital : Rs. 0.00

Total Cost Project : Rs. 578490.50

3 Means of Financing :
Own Contribution 5% Rs. 28925.00

Bank Finance : 95%

Term Loan Rs. 549566.00
Working Capital Rs. 0.00

Total Rs. 549566.00

Margin Money (Govt. Subsidy) From KVIC 25% Rs. 144623.00

Margin Money Subsidy received From KVIC will be kept in term deposit as per norms of
PMEGP in the name of Beneficiary for three years in the financing branch.

3 STATEMENT SHOWING THE REPAYMENT OF TERM LOAN & WORKING CAPITAL :

TERM LOAN

Year Installment Interest @

Opening Balance Closing Balance
11.00%
1st 549566 18319 531247 60452
2nd 531247 109913 421334 58437
3rd 421334 109913 311421 46347
4th 311421 109913 201508 34256
5th 201508 109913 91594 22166
6th 91594 109913 0 10075
7th 0 0 0 0
8th 0 0 0 0

WORKING CAPITAL

Year Opening Balance Installment Closing Balance Interest @

11.00%
1st 0 0 0 0
2nd 0 0 0 0
3rd 0 0 0 0
4th 0 0 0 0
5th 0 0 0 0
6th 0 0 0 0
7th 0 0 0 0
8th 0 0 0 0
3 STATEMENT SHOWING THE DEPRECIATION ON FIXED ASSETS:
WORKSHED @ 10.00%
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Opening Balance 300002 270001 243001 218701 196831
Depreciation 30000 27000 24300 21870 19683
Closing Balance 270001 243001 218701 196831 177148
MACHINERY @ 10.00%
Opening Balance 223489 201140 181026 162923 146631
Depreciation 22349 20114 18103 16292 14663
Closing Balance 201140 181026 162923 146631 131968
TOTAL DEPRECIATION
Workshed 30000 27000 24300 21870 19683
Machinery 22349 20114 18103 16292 14663
Total 52349 47114 42403 38162 34346

4 Schedule of Sales Realization :

4 Details of Sales
Particulars of Product Rate/ No. of Amount in Rs.
Pair/Unit Pair/Unit
0
Made to measure dresses per day 14 550.00 4200 2310000.00
readymade coat sales per day 1 4500.00 300 1350000.00
readymade sherwani sales per day 2 5000.00 600 3000000.00
readymade jacket sales per day 2 1100.00 600 660000.00
readymade kurta sales per day 5 600.00 1500 900000.00
dresses fabric per day 20 meter 150.00 6000 900000.00
readymade blezer sales per day 2 2500.00 600 1500000.00
Total 10620000.00

4 Capacity Utilization of Sales

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year

Capacity Utilization 70% 80% 90% 90% 90%

Sales / Receipts 7434000 8496000 9558000 9558000 9558000

5 Rawmaterials :
Particulars Unit Rate/unit Reqd.Unit Amount in Rs.
dresses fabric Mrt 110.00 6500 715000.00
readymade coat piece 3900.00 400 1560000.00
readymade sherwani piece 4200.00 750 3150000.00
readymade jacket piece 700.00 850 595000.00
readymade kurta piece 430.00 1800 774000.00
readymade blezer piece 1800.00 700 1260000.00
0 0 0.00 0 0.00
0 0 0.00 0 0.00
0 0 0.00 0 0.00
Total 8054000.00
5 Wages :
Particulars No. of Wages Amount in Rs.
Worker Per Month (Per Annum)
Master Tailor 1 15000.00 180000.00
Stitching Master/tailor 2 12000.00 288000.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0 0.00 0.00
Total 3 468000.00

5 Repairs and Maintenance : Rs. 2000.00

5 Power and Fuel : Rs. 6000.00

5 Other Overhead Expenses : Rs. 1000.00

6 Administrative Expenses :
6 Salary
Sales Man 2 8000.00 192000.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0.00 0.00
0 0.00 0.00
Total 2 192000.00

6 Telephone Expenses 500.00

6 Stationery & Postage 1200.00

7 Advertisement & Publicity 2000.00

7 Workshed Rent 240000.00

7 Other Miscellaneous Expenses 5000.00

Total 440700.00
7 Capacity Utilization of Manufacturing & Administrative Expenses :
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Capacity Utilization 70% 80% 90% 90% 90%
Manufacturing Expenses
Raw materials 5637800 6443200 7248600 7248600 7248600
Wages 327600 374400 421200 421200 421200
Repairs & Maintenance 1400 1600 1800 1800 1800
Power & Fuel 4200 4800 5400 5400 5400
Other Overhead Expenses 700 800 900 900 900
Administrative Expenses
Salary 192000 192000 192000 192000 192000
Postage Telephone Expenses 350 400 450 450 450
Stationery & Postage 840 960 1080 1080 1080
Advertisement & Publicity 1400 1600 1800 1800 1800
Workshed Rent 240000 240000 240000 240000 240000
Other Miscellaneous Expenses 3500 4000 4500 4500 4500
Total: 6409790 7263760 8117730 8117730 8117730
8 Assessment of Working Capital :
Particulars Amount in Rs.
Sale 10620000.00

Manufacturing Expenses
Raw Material 8054000.00
Wages 468000.00
Repair & Maintenance 2000.00
Power & Fuel 6000.00
Other Overhead Expenses 1000.00

Production Cost 8531000.00

Administrative Cost 440700.00
Manufacturing Cost 8971700.00
Working Capital Estimate :
Element of Working Capital No of Days Basis Amount in Rs.
0 0 Material Cost 0.00

Stock in process 0 Production Cost 0.00

Finished goods 0 Manufacturing Cost 0.00

Receivable by 0 Manufacturing Cost 0.00

Total Working Capital Requirement Per Cycle 0.00

9 Financial Analysis
9 Projected Profit & Loss Account :
Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Sales / Receipts 7434000 8496000 9558000 9558000
7434000 8496000 9558000 9558000
Manufacturing Expenses
Raw materials 5637800 6443200 7248600 7248600
Wages 327600 374400 421200 421200
Repairs & Maintenance 1400 1600 1800 1800
Power & Fuel 4200 4800 5400 5400
Other Overhead Expenses 700 800 900 900
Depreciation 52349 47114 42403 38162
Production Cost 6024049 6871914 7720303 7716062
Administrative Expenses
Salary 192000 201600 211680 222264
Postage Telephone Expenses 350 400 450 450
Stationery & Postage 840 960 1080 1080
Advertisement & Publicity 1400 1600 1800 1800
Workshed Rent 240000 240000 240000 240000
Other Miscellaneous Expenses 3500 4000 4500 4500
Administrative Cost 438090 448560 459510 470094
Interest on Bank credit @ 11%
Term Loan 60452 58437 46347 34256
Working Capital Loan 0 0 0 0
Cost of Sale 6522591 7378911 8226159 8220413
Net Profit Before Tax 911409 1117089 1331841 1337587
Less Tax 0.00 0.00 0.00 0.00
Net Profit 911409 1117089 1331841 1337587

9 CALCULATION OF DEBT SERVICE CREDIT RATIO (D.S.C.R) :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Net Profit 911409 1117089 1331841 1337587
Add :
Depreciation 52349 47114 42403 38162
TOTAL - A 963758 1164203 1374243 1375750
Payments :
On Term Loan :
Interest 60452 58437 46347 34256
Installment 18319 109913 109913 109913
On Working Capital
Interest 0 0 0 0
TOTAL - B 78771 168350 156260 144169
D.S.C.R = A/B
12.23 6.92 8.79 9.54
Average D.S.C.R

9 PROJECTED BALANCE SHEET :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
LIABILITIES :
Beneficiary's Capital 28925 28925 28925 28925
Profit 911409 1117089 1331841 1337587
Term Loan 549566 531247 421334 311421
Working Capital Loan 0 0 0 0
Current Liabilities 0 0 0 0
Sundry Creditors 0 0 0 0
1489900 1677261 1782099 1677933
ASSETS :
Gross Fixed Assets : 553491 501141 454027 411625
Less : Depreciation 52349 47114 42403 38162
Net Fixed Assets 501141 454027 411625 373462
Preliminary & Pre-Op. Expenses 5000 3750 2813 2109
Current Assets 0 0 0 0
Cash in Bank/Hand 988758 1223233 1370475 1304471
Total 1489900 1677261 1782099 1677933

9 CASH FLOW STATEMENT :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Net Profit 911409 1117089 1331841 1337587
Add : Depreciation 52349 47114 42403 38162
Term Loan 549566 531247 421334 311421
Working Capital Loan 0 0 0 0
Beneficiary's Capital 28925 0 0 0
Total 1542249 1695450 1795577 1687170

Total Fixed Capital Invested 578491

Repayment of Term Loan 18319 109913 109913 109913

Repayment of WC Loan 0 0 0 0
Current Assets 0 0 0 0
Total 18319 109913 109913 109913

Opening Balance 0 1523930 3109467 4795131

Surplus 1523930 1585537 1685664 1577257
Closing Balance 1523930 3109467 4795131 6372388

10 BREAK EVEN POINT AND RATIO ANALYSIS :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Fixed Cost 550891 554111 548259 542513
Variable Cost 6024049 6871914 7720303 7716062
Total Cost 6574940 7426025 8268562 8258575

Sales 7434000 8496000 9558000 9558000

Contribution (Sales-VC) 1409951 1624086 1837697 1841938

B.E.P in % 39.07% 34.12% 29.83% 29.45%

Break Even Sales in Rs. 2904588 2898695 2851538 2815153

Break Even Units 5281 5270 5185 5118

Current Ratio 0.00 0.00 0.00 0.00

Net Profit Ratio 12.26% 13.15% 13.93% 13.99%

This Project Report has been prepared based on the data furnished by the beneficiary whose details are
given in the application.
Place :
Date:
Prepared by :
A BDUL RA HEEM
Full Name :

Signature of the Beneficiary

PMEGP Project Report Page 1