ON

STEEL FURNITURE TRADING UNIT

FOR
PMMY SCHEME

SUBMITTED BY

NAME : SRI SAMBHU ROY

FATHER’S NAME : LT.JAMINI MOHAN ROY
ADDRESS : VIL-MANUGHAT,DHALAI
PO+ PS : MANUGHAT
SUBDIVISION : LONGTARAI VELLY, DHALAI
DISTRICT : DHALAI, TRIPUIRA, PIN NO- 799275
CONTACT NO : 8119065419

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 HIGHLIGHT OF THE PROJECT SUMMERY

1 Name of the Activity : STEEL FURNITURE TRADING UNIT

2 Name of the Entrepreneur : Sri Sambhu Roy
3 Father’s Name : Lt. Jamini Mohan Roy
4 Address of applicant : Vill-Manughat, Po+Ps-Manughat Subdivision-
(Permanent & present) Longtarai Velly, Dhalai Pin-799275

5 Present Address : Same as above mentioned

6 Location of the proposed unit : Manu Bazar
7 Cast :
8 Qualification : H.S Passed
9 Date of birth : 07/10/1966
10 Aadhar No : 9063-6850-8452
11 Pan card No : APWPR8885B
12 Contact No : 8119065419
13 Technical qualification & other : Nil
14 Experience : 10 years experience of this business
15 Employment potential : 02 nos
16 Proposed bank : UBI Bank, Manughat Branch
17 Repayment Method : As per bank norms or 5years
18 Special marketing avenue :
19 Total project cost:- : Rs. 5,00,000.00
a) Working capital : Rs. 4,00,000.00
b) Fixed capital : Rs. 1,00,000.00
20 Source of fund:-
a) Own contribution (5%) : Rs. 25,000.00
b) Bank loan under PMMY : Rs. 4,75,000.00
scheme (95%)
21 Address of raw materials : Agartala,Guwahati, Delhi & Kolkata etc.
22 Cost of production (PA) : Rs.11,22,000.00
23 Turn Over (PA) : Rs.15,00,000.00
24 B.E.P : 20%
25 Net profit on sale (%) :

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 PROJECT REPORT
ON
STEEL FURNITURE TRADING UNIT

PROPOSED PROJECT: - The proposed project is being to set up

steel furniture trading unit at Manu bazaar, Dhalai, Tripura.

INTRODUCTION:
With the growth of industrial, commercial and household activities the demand of office
automation, equipments and steel furniture has increased considerably, Steel furniture is preferred
over other kinds of furniture due to its durability, foldability (in many cases) and easy
transportability. This profile envisages production of steel almirahs, steel cup boards and steel chairs.
These items find their extensive use in industrial, commercial and household activities. The products
of the unit are stored at the same place where they are displayed. They are kept unpacked. Lying
next to each other, there are more chances of damages. For displaying any other product, they need
to shift the product kept in front of it. This often shifting of products may lead to damaging the
product itself. Since all the products are stored on the floor, hence there is scope of stacking the
product on lofts. This will result in better storage and display solution. The finished products are
transported without any packaging. They are pulled and carried to the vehicle with the help of 3-4 men. There is a lot of
mishandling involved while carrying the product to the vehicle and thereafter. This leads to small/severe damages in the
product till it reaches the buyer
MARKET POTENTIAL:
As mentioned above, the steel chairs, almirahs, steel cup boards, plastic chairs and steel
chairs find their extensive use in industrial, commercial and household activities. These items are also
used by various Govt. organizations. With the growth of industrial, commercial and household
establishments, the demand of steel furniture items has increased considerably. Various Govt.
organizations also procure these items directly or through annual rate contract system. Hence there
is a good market potential for above items. The demands for these items are increasing day by day
due to development of living standards in rural and urban areas. There is a good demand for these
items mainly for offices, institutions, commercial places in all areas, towns/big villages
Assumptions
The estimate of this project is on the basis of the following:
The unit will function for 300 days in a year.
The price of the raw material and services are taken at the prevailing market rates.
Repairs, insurance, telephone charge, etc., are taken at lump.
No contingency provision is made since the costs are taken at prevailing market price.
Depreciation has been calculated on Written down Value Method.
Income tax has been calculated at the rate applicable to proprietary concern.
CONCLUSION
On considering the various aspects of the project both financially & technically it can be
seen that the above scheme will be a great success. Further it is certified that the project report
is technically feasible and economically viable.

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 FINANCIAL ASPECT
A. Fixed Expenditure : Rs.1,00,000.00

1. Cost of Electric wiring, Fan, Tube : Rs.10,000.00

Bulb, etc.
2. Miss. Expenses : Rs.70,000.00
(Furniture, counter, chair, table, rack, etc. would be
required for the shop, the expected expenditure over which
would be around )
3. Expenses over the decoration of the shop : Rs. 20,000.00
4. THUS THE TOTAL FIXED CAPITAL RS.1,00,000.00
(1+2+3 of A)

B. Working Capital

1. RAW MATERIALS : Rs.3,70,000.00

[Eg. steel chairs, almirals, steel cup boards, plastic chairs
Tea table, folding types chairs, steel catering table, desk table
Sukes, keg, steel beverage keg, stainless steel, plastic chair, sofa
All kinds of steel furniture, all types of plastic things etc.]

2. MANPOWER FOR TWO MONTH:

i. Manager cum Supervisor : SELF
ii. Skilled sell man 1No. @ Rs.2,500/- : Rs. 5,000.00
iii. unskilled sell man 1no @ Rs.4,000/- : Rs. 8,000.00

3. Shad & building (PM) Own /Rented : Rs. 7,000.00

4. Utility
a) Transportation : Rs.5,000.00
b) Insurance : Rs.1,000.00
c) Advertisement : Rs.2,000.00
d) Power : Rs.2,000.00
……………………………………
Total- Rs. 30,000.00

Thus, total working capital Rs.4,00,000.00

TOTAL EXPENDITURE OF THE PROJECT

a) Non-Recurring expenditure : Rs.1,00,000.00
b) Recurring expenditure : Rs. 4,00,000.00

MEANCE OF FINANCE

a) Own Contribution 5% : Rs. 25,000.00

b) Bank Loan under PMMY @ 95% : Rs.4,75,000.00
………………………………
Total – Rs.5,00,000.00

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COST OF PRODUCTION (PER ANNUMN)
a) Raw materials : Rs.10,00,000.00
b) Man power for 12 month : Rs. 78,000.00
c) Other expenses for 12 month : Rs. 12,000.00
d) Depreciation on fixed assets @ 20% : Rs. 20,000.00
e) Interest on loan @ 12% : Rs. 12,000.00
….………………………….
Total- Rs.11,22,000.00

SALE REALIZATION (PER ANNUMN)

Turnover per year Total: 15,00,000.00

PROFITABILITY ACCOUNT (P.A):

SALE REVENUE COST OF PRODUCTION OPERATING PROFIT

RS.15,00,000.00 RS.11,22,000.00 RS.3,78,000.00

*Operating profit : Rs.3,78,000.00

*IT payable : Rs.00.00
*Net Profit : Rs.3,78,000.00

% of profit on sale : profit X 100

………………………………
Sale
378000 X 100
…..………………………
1500000

= 26%

BREAKING EVEN POINT ANALYSIS

(Compound on Fixed Cost)
a. 12% of labour cost
b. 10% of other expenses
c. Total depreciation
d. Interest

THUS, B.E.P = Fixed Cost x 100

------------------------------
Fixed Cost + Profit

= 20% (on operation)

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INTEREST CALCULATION & REPAYMENT SCHEDULE

*Rate of Interest : @ 12% P.A

*Repayment Period : 5 Years
*Moratorium : Nil
Amortization Schedule Rs.4,75,000.00
Year Repayment interest Principal Balance

1st Year 134,004.76 60,241.89 73,762.87 401,237.13

2nd Year 134,004.76 50,886.91 83,117.85 318,119.28
3rd Year 134,004.76 40,345.49 93,659.27 224,460.01
4th Year 134,004.76 28,467.15 105,537.61 118,922.40
5th Year 134,004.74 15,082.34 118,922.40 0.00
Note: Particulars Capacity Utilization (Rs in '000)
1. All figures mentioned above are only indicative.
2. If the investment on Building is replaced by Rental then
a. Total Cost of Project will be reduced.
b. Profitability will be increased.
c. Interest on C.E.will be reduced

Date. Submitted by

NAME : SRI SAMBHU ROY

FATHER’S NAME : LT. JAMINI MOHAN ROY
ADDRESS : VIL-MANUGHAT,DHALAI
PO+ PS : MANUGHAT
SUBDIVISION : LONGTARAI VELLY, DHALAI
DISTRICT : DHALAI, TRIPUIRA, PIN NO- 799275
CONTACT NO : 8119065419

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