I M T & COMPANY CHARTERED ACCOUNTANTS HANDWARA KUPWARA J&K

DETAILED TECHNO-ECONOMIC CUM

PRE-INVESTMENT PROJECT REPORT

ON

LINE OF ACTIVITY : CUTTING & TAILORING

FOR

M/S MOHD SHAFI BHAT

LOCATION: ARARGARH TARATHPORA

PROP:
MOHD SHAFI BHAT S/O GH AHMAD BHAT
R/O AMARGARH TARATHPORA

Office Address: (H O)
IMT & COMPANY
CHARTERED ACCOUNTANTS
LEVEL-II AKSA MALL , I G ROAD OPP
EXHIBITION SRINAGAR KMR-190001
94199055084 , 9419013191 , 9419741560

Branch Office :
IMT & COMPANY
CHARTERED ACCOUNTANTS
2ND FLOOR SHEIKH HAMZAH COMPLEX
HANDWARA KUPWARA J&K-193221
Date:, 06-02-2023 7006616940 , 7051598336
Place:, srinagar imthandwara18@gmail.com

M/S MOHD SHAFI BHAT

1. PROJECT AT A GLANCE - TOP SHEET

1 Name of the Entreprenuer M/S MOHD SHAFI BHAT

2 Constitution (legal Status) : INDIVIDUAL

3 Father's/Spouce's Name MOHD SHAFI BHAT S/O GH AHMAD BHAT

4 Unit Address : LOCATION: ARARGARH TARATHPORA

Taluk/Block: TARATHPORA
District : KUPWARA
Pin: 193222 State: JAMMU & KASHMIR
E-Mail :
Mobile
5 Product and By Product

6 Cost of Project : Rs. 1,20,000

Name of the project / business activity
proposed : CUTTING & TAILORING

7 Means of Finance
Term Loan (BANK FINANCE) Rs. 1,14,000.00
KVIC Margin Money (Subsidy) Rs. 42,000.00
Own Capital Rs. 6000.00

8 Debt Service Coverage Ratio :

9 Pay Back Period : 5 Years

10 Project Implementation : 12 Months

Period

11 Break Even Point :

12 Employment : 2

13 Power Requirement : 5 KVA

14 Estimated Annual Sales : Rs. 987500.00

Turnover

2. PROJECT HIGHLIGHTS

NAME AND UNIT ADDRESS:,

M/S MOHD SHAFI BHAT

LOCATION: ARARGARH TARATHPORA

ACTIVITY
CUTTING & TAILORING

Scheme
PMEGP (KVIB)
 Capital Expenditure
a) Cost Of Plant & Machinery 65000.00

b) Contingencies on asserts 15000.00

Working Capital
40000.00

Total project cost 120000.00

Means of Finance
a) Promotor Capital 6000.00

b) Bank Finance 114000.00

c) Employment Potential 2

Subsity From govt/agency

42000.00

DETAILED PROJECT REPORT

3 COST OF PROJECT
A. Fixed Capital Investment
a. Land : Own/Rented

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

Shop 150 0.00 0.00
0 0 0.00 0.00
Total 0.00

C. Machinery Qty. Rate Amount in Rs.

Single Needle Stitching machine With Motor 1 18000.00 18000.00

Tumble dryer 1 22000.00 22000.00
Steam Press 2 2500.00 5000.00
Power operated snls stitching machine 1 20000.00 20000.00
0.00
0.00
0.00
0.00

Total 65000.00

d. Preliminary & Pre-operative Cost : (Renovation) Rs. 5000.00

 e. Furniture & Fixtures : Rs. 10000.00
f. Contingency/Others/Miscellaneous : Rs. 0.00

Total Capital Expenditure : Rs. 80000.00

Working Capital Rs. 40000.00

Total Cost Project : Rs. 120000.00

3.1 Means of Financing :

Own Contribution 5% Rs. 6000.00
Bank Finance : 95%
Term Loan (Bank) Rs. 76000.00
Working Capital (from Bank) Rs. 38000.00

Total Rs. 114000.00

Subsity From govt/agency 35% Rs. 42000.00

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

Interest @
Year Opening Balance Installment Closing Balance
10.85%
1st 76000 15200 60800 8246
2nd 60800 15200 45600 6597
3rd 45600 15200 30400 4948
4th 30400 15200 15200 3298
5th 15200 15200 0 1649
6th 0 0 0 0
7th 0 0 0 0
8th 0 0 0 0

WORKING CAPITAL

Interest @
Year Opening Balance Installment Closing Balance
10.85%
1st 38000 7600 30400 4123
2nd 30400 7600 22800 3298
3rd 22800 7600 15200 2474
4th 15200 7600 7600 1649
5th 7600 7600 0 825
6th 0 0 0 0
7th 0 0 0 0
8th 0 0 0 0
3.3 STATEMENT SHOWING THE DEPRECIATION ON FIXED ASSETS:
WORKSHED @ 10.00%
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
 Opening Balance 0 0 0 0 0
Depreciation 0 0 0 0 0
Closing Balance 0 0 0 0 0
MACHINERY @ 15.00%
Opening Balance 65000 55250 46963 39918 33930
Depreciation 9750 8288 7044 5988 5090
Closing Balance 55250 46963 39918 33930 28841
TOTAL DEPRECIATION
Workshed 0 0 0 0 0
Machinery 9750 8288 7044 5988 5090
Total 9750 8288 7044 5988 5090

4 Schedule of Sales Realization :

4.1 Details of Sales
Rate/ No. of Amount in Rs.
Particulars of Product
Pair/Unit Pair/Unit

Sewing of Kurtas 550.00 250 137500.00

Abbays 800.00 50 40000.00
Farak, shilwar 550.00 450 247500.00
kids wear 800.00 100 80000.00
Coat 1250.00 40 50000.00
shirts,pents 550.00 350 192500.00
Bed sheets 200.00 1200 240000.00
0.00

Total 987500.00

4.2 Capacity Utilization of Sales

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

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

Sales / Receipts 691250 790000 888750 888750 888750

5 Rawmaterials :
Particulars Unit Rate/unit Reqd.Unit Amount in Rs.
-
Sewing Needles/Hand Scissors. … pcs 5.00 500 2,500.00
Pins pcs 2.00 1000 2,000.00
Thread pkts 450.00 25 11,250.00
Buttons pkts 15.00 650 9,750.00
Tetron mtrs 80.00 200 16,000.00
Zips etc pcs 10.00 750 7,500.00
Embordered Laces mtrs 85.00 150 12,750.00
other misc exp ls 3500.00 1 3,500.00

Total 65250.00
5.1 Wages :
 No. of Wages Amount in Rs.
Particulars
Worker Per Month (Per Annum)
Skilled workers 1 4900.00 58800.00
0.00
0.00
0.00
0.00
Total 1 58800.00

5.2 Repairs and Maintenance : Rs. 2272.00

5.3 Power and Fuel : Rs. 1800.00
5.4 Other Overhead Expenses : Rs. 1000.00

6 Administrative Expenses :
6.1 Salary
Tailor master 1 5500.00 66000.00
0.00
0 0.00 0.00
Total 1 66000.00

6.2 Telephone Expenses 1000.00

6.4 Stationery & Postage 1200.00
6.5 Advertisement & Publicity 1000.00
6.6 Workshed Rent 6500.00
6.7 Other Miscellaneous Expenses 850.00

Total 76550.00
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
Rawmaterials 502425 574200 645975 645975 645975
Wages 41160 47040 52920 52920 52920
Repairs & Maintenance 1590 1818 2045 2045 2045
Power & Fuel 1260 1440 1620 1620 1620
Other Overhead Expenses 700 800 900 900 900
Administrative Expenses
Salary 66000 66000 66000 66000 66000
Postage Telephone Expenses 700 800 900 900 900
Stationery & Postage 840 960 1080 1080 1080
Advertisement & Publicity 700 800 900 900 900
Workshed Rent 6500 6500 6500 6500 6500
Other Miscellaneous Expenses 595 680 765 765 765
Total: 622470 701038 779605 779605 779605

8 Assessment of Working Capital :

Particulars Amount in Rs.
Sale 987500.00
 Manufacturing Expenses
Raw Material 65250.00
Wages 58800.00
Repair & Maintenance 2272.00
Power & Fuel 1800.00
Other Overhead Expenses 1000.00

Production Cost 129122.00

Administrative Cost 76550.00
Manufacturing Cost 205672.00
Working Capital Estimate :
Element of Working Capital No of Days Basis Amount in Rs.
0 17 Material Cost 7,316.91

Stock in process 17 Production Cost 7,316.91

Finished goods 20 Manufacturing Cost 13,711.47

Receivable by 17 Manufacturing Cost 11,654.75

Total 40,000.04

Total Working Capital Requirement (Roundoff) Per Cycle 40,000.00

9 Financial Analysis
9.1 Projected Profit & Loss Account :
Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year

Sales / Receipts 691250 790000 888750 888750

691250 790000 888750 888750
Manufacturing Expenses
Rawmaterials 502425 574200 645975 645975
Wages 41160 47040 52920 52920
Repairs & Maintenance 1590 1818 2045 2045
Power & Fuel 1260 1440 1620 1620
Other Overhead Expenses 700 800 900 900
Depreciation 9750 8288 7044 5988
Production Cost 556885 633585 710504 709448
Administrative Expenses
Salary 66000 69300 72765 76403
Postage Telephone Expenses 700 800 900 900
Stationery & Postage 840 960 1080 1080
Advertisement & Publicity 700 800 900 900
Workshed Rent 6500 6500 6500 6500
Other Miscellaneous Expenses 595 680 765 765
Administrative Cost 75335 79040 82910 86548
Interest on Bank credit @ 10%
Term Loan 8246 6597 4948 3298
Working Capital Loan 4123 3298 2474 1649
 Cost of Sale 644589 722520 800836 800943
Net Profit Before Tax 46661 67480 87914 87807
Less Tax 0.00 0.00 0.00 0.00
Net Profit 46661 67480 87914 87807

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

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Net Profit 46661 67480 87914 87807
Add :
Depreciation 9750 8288 7044 5988
TOTAL - A 56411 75767 94959 93795
Payments :
On Term Loan :
Interest 8246 6597 4948 3298
Installment 15200 15200 15200 15200
On Working Capital
Interest 4123 3298 2474 1649
TOTAL - B 27569 25095 22621 20148
D.S.C.R = A/B
2.05 3.02 4.20 4.66
Average D.S.C.R

9.3 PROJECTED BALANCE SHEET :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
LIABILITIES :
Promoters Capital 6000 6000 6000 6000
Profit 46661 67480 87914 87807
Term Loan 76000 60800 45600 30400
Working Capital Loan 38000 30400 22800 15200
Current Liabilities 0 0 0 0
Sundry Creditors 0 0 0 0
166661 164680 162314 139407
ASSETS :
Gross Fixed Assets : 75000 65250 56963 49918
Less : Depreciation 9750 8288 7044 5988
Net Fixed Assets 65250 56963 49918 43930
Preliminary & Pre-Op. Expenses 5000 3750 2813 2109
Current Assets 38000 30400 22800 15200
Cash in Bank/Hand 63411 77317 89596 80276
Total 166661 164680 162314 139407

9.4 CASH FLOW STATEMENT :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Net Profit 46661 67480 87914 87807
Add : Depreciation 9750 8288 7044 5988
Term Loan 76000 60800 45600 30400
Working Capital Loan 38000 30400 22800 15200
Promoters Capital 6000 0 0 0
Total 176411 166967 163359 139395

Total Fixed Capital Invested 80000

 Repayment of Term Loan 15200 15200 15200 15200
Repayment of WC Loan 7600 7600 7600 7600
Current Assets 38000 30400 22800 15200
Total 60800 53200 45600 38000

Opening Balance 0 115611 229378 347137

Surplus 115611 113767 117759 101395
Closing Balance 115611 229378 347137 448531

9.5 BREAK EVEN POINT AND RATIO ANALYSIS :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Fixed Cost 93331 93924 94902 95834
Variable Cost 561008 636884 712978 711097
Total Cost 654339 730808 807880 806931

Sales 691250 790000 888750 888750

Contribution (Sales-VC) 130242 153117 175772 177653

B.E.P in % 71.66% 61.34% 53.99% 53.94%

Break Even Sales in Rs. 495349 484600 479850 479431

Break Even Units 901 881 872 872

Current Ratio 1.08 0.93 0.75 0.55

Net Profit Ratio 6.75% 8.54% 9.89% 9.88%

This Project Report has been prepared based on the data furnished by the entrepreneur whose details are given in the
application.
Place : SRINAGAR
Date: 6-Feb-23
Prepared by :IMT & COMPANY
Full Name : M/S MOHD SHAFI BHAT