PROJECT REPORT ON READYMADE GARMENTS

MANUFACTURING UNIT UNDER P.M.E.GP SCHEME -

2018-19

NAME OF THE PROPRIETOR : - LIPIKA NAYAK

Address :-

WARD NO-20 KRUSHNAPRASAD PRADHANSAHI,

G.P-LATHIPADA

PO- ITAMATI

PS-ITAMATI

DIST-NAYAGARH

TOTAL PROJECT COST

BLOCK CAPITAL - Rs3,00,000/-

WORKING CAPITAL- Rs2,00,000/-

TOTAL- Rs5,00,000/-

COST OF PRODUCTION (P.A)-Rs25,00,000/-

TURNOVER/ SALES VALUE (P.A)-Rs26,95,000/-

GROSS PROFIT (P.A)-Rs1,95,000/-

NET PROFIT (P.A)-Rs2,25,000/-

PROFIT RATIO- 8.3%

RATE OF Return -45%

B.E.P -63.2%
FINANCIAL ASPECTUS

A. Land and Building - own

B. MACHINARY AND EQUIPMENTS

(Sewing Machine , Zic-Zac Machine Embroidery Machine and Other required

equipments etc. ) - Rs 2,40,000/-

C. FURNITURE AND FIXTURES - Rs 55,000/-

D. PRE-OPERATIVE EXPENSES- Rs 5,000/-

BLOCK CAPITAL- Rs 3,00,000/-

E. WORKING CAPITAL (P.M)

i. Raw materials (P.M.)- Rs 1,37,000/-

ii. Salary and Wages (P.M.)
a. Manager –cum –Accountant - self
b. Skilled labour -5nos @ 12500/- x 5- Rs 30,000/-
Total- Rs 30,000/-

iii. UTILITIES (P.M.)

Water - Rs 500/-

Electricity - Rs2,000/-

Total- Rs2,500/-

iv. OTHER EXPENSES (P.M.)

a. Repair and maintenance- Rs 8,000/-

b. Telephone Expenses - Rs 2,000/-
c. Transportation charges- Rs 10,000/-
d. Stationaries - Rs 8,000/-
e. Miscellaneous exp. Rs 2,000/-
Total Rs 30,000/-
 Working capital Total =(i) +(ii)+(iii)+(iv) =Rs 2,00,000/-

F. TOTAL PROJECT COST

BLOCK CAPITAL = Rs 3,00,000/-

WORKING CAPITAL =Rs 2,00,000/-

TOTAL Rs 5,00,000/-

G. MEANS OF FINANCE

OWNER CONTRIBUTION @10% = Rs 25,000/-

SUBSIDY FROM GOVT. @35% = Rs1,75,000/-

FINANCE FROM BANK @60% =Rs3,00,000/-

TOTAL = Rs 5,00,000/-

H. COST OF PRODUCTION (P.A)

i. All recurring expenditure Rs 24,00,000/-

ii. Depreciation on machinery @ 10% Rs 24,000/-
iii. Depreciation & furniture @20% Rs 11,000/-
iv. Interest on bank loan @12.5% Rs 62,000/-
v. Insurance @ 0.5%- Rs 2,500/-
Total- Rs25,00,000/-

I. Turnover/Sales Value (P.A)- Rs26,95,000/-

(By sales of Fabrication)

J. Gross profit (P.A)- Rs1,95,000/-

K. Net Profit (P.A.) Rs2,25,000/-

L. Profit Ratio = Profit x 100 - Rs8.3%

Turnover

M. Rate of Return = Profit x 100- Rs45%

Total investment

N. BREAK EVEN POINT ANALYSIS FIXED COST = F.C

Depreciation on Furniture @20%- Rs 11,000/-

Depreciation on machinery @10%- Rs 24,000/-

Interest on bank loan @12.5%- Rs 62,000/-

Insurance @0.5%- Rs 2,500/-

40% Annual salary and wages- Rs1,44,000/-

40% Annual other expenses- Rs1,44,000/-

TOTAL- Rs3,88,000/-

B.E.P = F.C x 100 - =63.2%

F.C + Profit
Moratorium period = 6months
Repayment period of loan = 5years = 60E.M.I
= Rs8,333.33 P.M + Interest

Signature of the proprietor