27693848-textile

INTRODUCTION

Entrepreneurship Development And Small Business Management

B.R.C.M. COLLEGE OF BUSINESS ADMINISTRATION

Bio data of Promoter

Hirpara Nishit H. (B.B.A.)Bhikadiya Piyush (B.B.A.)Bhavsar sumit (B.B.A.)

Experience of Promoter

Nishit hirpara

Part time working in his father’s factory since 10th slandered,Tally accounting course in aptech computer education.Take summer training in CHALTHAN SUGAR FACTORY for three months.

Piyush bhikhadiya

Take summer training in KAMREJ SUGAR FACTORY for three months.

Bhavsar sumit

Take summer training in KAMREJ SUGAR FACTORY for three months.

ORGANIZATION

This firm is a partnership firm. There are three partners in this firm. And there is no planning add more partner in future.

PRODUCT DETAIL

1. French crap2. Bnarasi3. Jari brocket4. Kashturi



PHOTOGRAPH OF MACHINARY

POWER LOOM

JACQUARD


http://en.wikipedia.org/wiki/File:Jacquard.loom.hooks.jpg

http://en.wikipedia.org/wiki/File:Jacquard.loom.cards.jpg


MARKETPOTENTIAL



MARKET AREA

SURAT, GUJARAT

MARKETING SYSTEM

The whole marketing done through broker chain system.

ADVERTISEMENT

In NEWS PAPER advertisement are given or attach some chits or paper with it.



TECHNICAL

ASPECTS



RAW MATERIAL

A. French crap

Warp: 75/72, semidal size beam

Waft: 75/72, crap

B. Banarasi

Warp: 68/48, semidal nylon beam

: 75/36, champion bright

Waft: 110/48, died bright

C. Jari brocket

Warp: 68/48, semidal nylon beam

Waft: 110/48, champion bright

: 50/100, kasab jari ( holo twist )

D. Kashturi

Warp: 60/100, semidal size beam

Waft: 75/72, crap



LOCATION AND SITE ADDRESS

Our firm located at pipodra G.I.D.C., KIM,

TA: MANGROL, DIST: SURAT

Our site address is

Block no.125, 15/16, ABCDE, vibhuti industries, pipodra G.I.D.C., KIM

PLANT CAPACITY

FOR 48 looms

50 meters/ machine/ day ( two ship )

x 48 m/c

2400 meters/ day

x 25 days ( working days )

60000 meters/ month

x 12 months

720000 meters/ year



PLANT LAY-OUT





PRODUCTION LAY-OUT WITH PROCESS

A loom is a machine or device for weaving thread or yarn into textiles. Looms can range from very small hand-held frames, to large free-standing hand looms, to huge automatic mechanical devices.

In practice, the basic purpose of any loom is to hold the warp threads under tension to facilitate the interweaving of the weft threads. The precise shape of the loom and its mechanics various, but the basic function is the same.


TRANSPORT


POLLUTION CONTROL

There is no any major pollution factor which is used in this factory. There is no pollution in this firm.

POWER

Power Supply Company: Gujarat electric board

HP: 55

Gas:NA

Power consumption:

48 (power loom + jacquard) m/c x 075 h.p. =36 h.p.

2 (waft) m/c x 0.75 h.p. =1.5 h.p.

2 (T.F.O.) m/c x 5 h.p. =10 h.p.

1 (winding) m/c x 2 h.p. =2 h.p.

1 (warping) m/c x 2.5 h.p. =2.5 h.p.

1 (grinder) m/c x 0.75 h.p. =0.75 h.p.

1 (drill) m/c x 0.75 h.p. =0.75 h.p.

TOTAL =55 H.P.

TECHNOLOGY

Power Loom With Jacquard ( 600 Hook )

3600,4800,6000,7200,8400,9600

T.F.O.

Up gradation machine Hi-speed



CAPACITY OF PLANT:

60,000 meters/ month,

7,20,000 meters/ year

COMMUNICATION SYSTEM:

The whole communication system work on the LAND LINE PHONE OR

MOBILE.

Every member of the office have one one mobile & every department have a one separate land line phone and every land line phone were connected with each other. So, communication channel will be easy for office work.

So, this way the communication channel will work in our firm.

TRANSPORT FACILITY:

The distance between the site and market is near about 25 k.m. and the finished goods weight is so heavy so, LOCAL TEMPO AND TRUCK is used for the transport facility.

OTHER COMMON FACILITY:

The other facilities like toilet, wash room, rest room, waiting room, etc are there.

VALUE ADDITION:

On every Wednesday, we will give one time snakes to every workers.If any one want more salary in advance than on the basis of his credit or performance we will help them out.



IMPLEMENTATION

SCHEDUEL

IMPLEMENTATION SCHEDUEL



TASKS / MONTHS1 2 3 4 5 6 7 8 9 10 1

112 1

314

1. Formulation of Project Report

2. Application for Term-Loan

3 Term-Loan Sanction

4. Possession of Land

5. Construction of Building

6. Getting Power and Water

7. Placing Order for Machinery

8. Receipt & installation of machinery

9. Manpower Recruitment

10.Trial Production



FINANCIAL

ASPECTS



COST OF PROJECTCOST OF PROJECT

Particulars Amount (Rs.)

Power Looms 30,00,000

Land 22,67,650

Other Fixed Assets 84,68,425

Total 1,37,36,075

MEANS OF FINANCEMEANS OF FINANCE

Particulars Amount (Rs)

Bank Loan 1,08,00,000

Partner 25,00,000

Friends 4,36,075

Total 1,37,36,075



COMPLETE CALCULATION WITH CURRENT DATA ( APPROXIMATE )

Land

Size: 85 feet x 82 feet ( for 5 sad’s ) = 6970 square feet

245/- rs/ s.q.feet x 6970 s.q.feet = 17,07,650/- rs

Land price 1707650

Stamp duty 310000

Advocate fees 50000

Land leavening ( road, drainage ) 200000

Total 2267650

Building

425 rs/ s.q.feet of 18 feet hight slab with R.C.C. beam, Colum, wall structure with majenine

6275 build up area X 425 rs/ s.q.feet

= 2666000 rs

Height 12 feet 6275 s.q.feet

X 275 rs/ s.q.feet

= 1725625 rs

Total cost of building

= ground floor + first floor + second floor

=2666000 + 1725625

=4391625 Rs.



Cost of machinery

Power loom 48 m/c x 62500 Rs/ loom (including tax )= 3000000

Jacquard(with driver chain)

48 m/c x 55000 Rs/ j.c. ( including tax )= 2640000

I-gudder 48 m/c x 4850 Rs/ gudder ( 4”x 8”x 18 feet ) = 232800

Waft machine2 m/c x 75000 / m/c = 150000

T.F.O. (540 spindle / m/c)

2 m/c x 297000 / m/c = 594000

Winding machine ( 48 spindle )

1 m/c x 150000 = 150000

Warping machine1 m/c x 300000 = 300000

Grinder machine 1 m/c x 5000 = 5000

Drill machine 1 m/c x 5000 = 5000

Electric fitting

Power loom( j.q.+waft)48 m/c x 2200rs (fitting with all equipment )

= 105600

T.F.O. 2 M/C X 12500 = 25000

Warping 1 m/c x 5000 = 5000

Total = 135600



Electric quotation

GEB charges + security deposits + wire + pole + transformer + service wire

= 220000 Rs

Millgian assessarise

A) Power loomEle. Motor > 3000Other > + 2000 5000/ x 48 m/c = 240000

B) Waft machineMotor > 3000/- x 2 motor = 6000Other > = 8200 = 14200

C) Jacquard machine Nylon threats (7 k.g ) V – hook Nikod threats Loods Fiber & fiber frame C – ring Wire healds Lingush Guide board Warmish = 12000 / m/c x 48 m/c

= 576000



D) T.F.O. Cops > 1100 x 2 = 2200 x 20 rs

= 44000

Plastis rolls > 1100 x 2 = 2200 x 25 rs = 55000

E) Worping machine

Belt > = 3000Beam pipe > 72 x 1400 rs = 100800(with tread) Beam pipe > 72 x 350 rs = 25200(plane pipe ) = 129000

OTHER Fixed assets

Weight scale = 12000/-

Folding table = 5000/-

Mending table = 3000/-

Fan ( 10 pec x 1400 ) = 14000/-

2 wheel ( 2 x 51000 ) = 102000/-

1 cycle = 2500/-

Hand cart ( 4 x 2000 ) = 8000/-

Lift = 150000/-

Telephone ( 4 x 2500 ) = 10000/-

Furniture = 150000/-

Office stationary = 7000/-

Water pump + boring + motor + plastic water tank

= 20000/-

Total = 483500/-



Changes in Working Capital RequirementChanges in Working Capital Requirement

Particulars 2009-10 2010-11 Change in WC

Increase Decrease

Current Assets:

Stocks 5,00,000 6,50,000 1,50,000 ….

Debtors 17,00,000 18,20,000 1,20,000 ….

Cash & Bank 1,50,000 1,75,000 25,000 ….

Bills Receivable 1,80,000 2,50,000 70,000 ….

Total {A} 25,30,000 28,95,000

Current Liabilities:

Creditors 8,90,600 9,00,000 …. 9,400

Bills Payable 2,09,000 1,95,000 14,000 ….

Total {B} 10,99,600 10,95,000

Working Capital {A-B} 14,30,400 18,00,000 …. ….

Increase In WC 3,69,600 …. …. 3,69,600

Total 18,00,000 18,00,000 3,79,000 3,79,000



PROJECTED PROFITABILITY STATEMENT:

Particulars Rs.(per meter)

Cost of Product 15.74

Labor + other expenses 6

Interest 2

Production Cost 23.74

Selling Cost 28.50

Production Cost 23.74

NET PROFIT 4.76

Net Profit (Per Year) = 7, 20,000 X 4.76

= 34, 27,200 Rs.



Trading and Profit & Loss AccountTrading and Profit & Loss Account

Particulars 2009-10 2010-11 Particulars 2009-10 2010-11

Purchase1,13,40,000

1,16,55,000

Sales2,05,20,000

2,10,90,000

Wages 43,20,000 44,40,000 Closing Stock 5,00,000 6,50,000

Transportation 90,000 95,000

Gross Profit 52,70,000 55,50,000

Total2,10,20,000

2,17,40,000

Total2,10,20,000

2,17,40,000

Interest 16,20,000 16,20,000 Gross Profit 52,70,000 55,50,000

Depreciation 10,43,310 10,45,060

Ele.Fitting 1,35,600 1,50,600

Ele.Quatation 2,20,000 2,25,000

Milligian 10,58,200 10,88,200

Loading 20,000 25,000

Fitting Expe. 1,20,000 1,25,000

Other Expenses 1,53,600 1,63,600

Net Profit Before Tax

25,19,290 26,27,540

Tax (12%) 3,02,314 3,15,304

PAT 22,16,976 23,12,236

Total 52,70,000 55,50,000 Total 52,70,000 55,50,000



Balance SheetBalance Sheet

Liabilities 2009-10 2010-11 Assets 2009-10 2010-11

Share Capital: Fixed Assets1,37,36,075

1,33,40,397

Capital 25,00,000 25,00,000 (-) Depreciation 10,43,310 9,21,972

NPAT 22,16,976 23,12,236 Net Block1,26,92,765

1,24,18,425

Secured Loans:

Investment 13,70,000 13,80,000

Bank Loan1,08,00,000

1,08,00,000

Current Assets:

Current Liabilities: Stock (Closing) 5,00,000 6,50,000

Creditors 8,90,600 9,00,000 Debtors 17,00,000 18,20,000

Bills Payable 2,09,000 1,95,000 Bills Receivable 1,80,000 2,50,000

Cash & Bank Balance

1,50,000 1,75,000

Misce.Expe. 23,811 13,811

Total1,66,16,576

1,67,07,236

Total1,66,16,576

1,67,07,236



Annexure: - 1 {Year 2009-10}

Fixed Assets Before Dep. Amount Depreciation After Dep. Amount

Land 22,67,650 3,40,147.5 19,27,502.5

Building 43,91,625 4,39,162.5 39,52,462.5

Power-looms 30,00,000 …. 30,00,000

jacquard 26,40,000 2,64,000 23,76,000

Gudder 2,32,000 …. 2,32,000

Waft Machine 1,50,000 …. 1,50,000

TFO machine 5,94,000 …. 5,94,000

Winding Machine 1,50,000 …. 1,50,000

Warping Machine 3,00,000 …. 3,00,000

Grinder + Drill 10,000 …. 10,000

Total 1,37,36,075 10,43,310 1,26,92,765

Annexure: - 2 {Year 2010-11}



Fixed Assets Before Dep. Amount Depreciation After Dep. Amount

Land 19,27,502.5 2,89,125.375 16,38,377.125

Building 39,52,462.5 3,95,246.25 35,57,216.25

Power-looms 30,00,000 …. 30,00,000

jacquard 23,76,000 2,37,600 21,38,400

Gudder 2,32,000 …. 2,32,000

Waft Machine 1,50,000 …. 1,50,000

TFO machine 5,94,000 …. 5,94,000

Winding Machine 1,50,000 …. 1,50,000

Warping Machine 3,00,000 …. 3,00,000

Grinder + Drill 10,000 …. 10,000

Total 1,33,36,075 9,21,972 1,24,18,425

Fund Flow StatementFund Flow Statement



SourcesSources AmountAmount ApplicationApplication AmountAmount

Purchase ofPurchase of plant & FAplant & FA

2,74,3402,74,340 Increase in WCIncrease in WC 3,69,6003,69,600

Fund FromFund From OperationOperation

95,26095,260

TotalTotal 3,69,6003,69,600 TotalTotal 3,69,6003,69,600

CALCULATION OF RATIO

1.1. Current Ratio = Current Ratio = Current assets Current assets

Current Liability Current Liability

Current assets = Inventories + Sundry Debtors + Cash and BankCurrent assets = Inventories + Sundry Debtors + Cash and Bank

Balance + Loans and Advances Balance + Loans and Advances

Current Liability = Liability + ProvisionCurrent Liability = Liability + Provision

2009 - 102009 - 10 2010 - 112010 - 11

= = 25,30,00025,30,000

10,99,600 10,99,600

= = 28,95,00028,95,000

10,95,00010,95,000

= 2.30 : 1= 2.30 : 1 = 2.64 : 1= 2.64 : 1



2.2. Quick ratio: Quick ratio: = = Quick assetsQuick assets

Quick liabilities Quick liabilities

Quick assets = Current assets – stockQuick assets = Current assets – stock Quick liability = Current liabilities – Bank over Draft Quick liability = Current liabilities – Bank over Draft

2009 - 102009 - 10 2010 - 112010 - 11

= = 25,30,000 – 5,00,00025,30,000 – 5,00,000

10,99,600 – 00 10,99,600 – 00

= = 20,30,00020,30,000

10,99,600 10,99,600

= = 28,95,000 – 6,50,00028,95,000 – 6,50,000

10,95,000 – 00 10,95,000 – 00

= = 22,45,00022,45,000

10,95,000 10,95,000

= 1.85 : 1= 1.85 : 1 = 2.05 : 1= 2.05 : 1

3. Gross profit ratio 3. Gross profit ratio = = Gross ProfitGross Profit 100100

Net sales Net sales

Gross Profit = Net sales – COGSGross Profit = Net sales – COGS COGS = Raw Material & goods Consumption + Manufacturing ExpensesCOGS = Raw Material & goods Consumption + Manufacturing Expenses

2009 - 102009 - 10 2010 - 112010 - 11

= = 52,70,000 52,70,000 100100

2,05,20,000 2,05,20,000

= = 55,50,000 55,50,000 100100

2,10,90,000 2,10,90,000

= 25.68%= 25.68% = 26.32%= 26.32%



4. Net profit Ratio 4. Net profit Ratio = = Net profit after taxNet profit after tax 100100

Net sales Net sales

2009 - 102009 - 10 2010 - 112010 - 11

= = 22,16,976 22,16,976 100100

2,05,20,000 2,05,20,000

= = 23,12,236 23,12,236 100100

2,10,90,000 2,10,90,000

= 10.80%= 10.80% = 10.96%= 10.96%

5.5. Debt Service Coverage RatioDebt Service Coverage Ratio :- :-

PAT + Depreciation + Other non-cash charges + Interest on term loanPAT + Depreciation + Other non-cash charges + Interest on term loan

Interest on term loan + Repayment of term loan Interest on term loan + Repayment of term loan

Year : 2009 - 10Year : 2009 - 10

= = 22,16,976 + 10,43,310 + 16,20,00022,16,976 + 10,43,310 + 16,20,000

16,20,000 + 21,60,000 16,20,000 + 21,60,000

= = 48,80,28648,80,286

37,80,000 37,80,000

= 1.29= 1.29

Year : 2010 - 11Year : 2010 - 11



= = 23,12,236+ 10,45,060 + 16,20,00023,12,236+ 10,45,060 + 16,20,000

16,20,000 + 21,60,000 16,20,000 + 21,60,000

= = 49,77,29649,77,296

37,80,000 37,80,000

= 1.32= 1.32

6. Return on investment ratio

= NET PROFIT AFTER TAX

TOTAL INVESTMENT

2009 - 102009 - 10 2010 - 112010 - 11

= = 22,16,976 22,16,976

13,70,000 13,70,000

= = 23,12,23623,12,236

13,80,000 13,80,000

= 1.62= 1.62 = 1.68= 1.68



MAN

POWER REQUIREMENT (HUMAN RESOURCES)

MAN POWER REQUIREMENT ( 2 ship )

48 m/c > 24 + 2 ( master )

2 m/c ( waft )

= 26

= 4



2 m/c (T.F.O.)

1 m/c ( winding )

1 m/c ( warp )

Swipper

Helper

Supervisor

Manager

= 4

= 2

= 1

= 1

= 1

= 2

= 1

Total = 42 people



LIST OF LICENSE

FROM

GOVERMENT



LICENSE REQUIRED FROM GOVERNMENT

1. POWER LOOM PERMIT

2. GUMASHTA DHARA LICENSE

3. SALES PERMITION

4. SSI REGESTRATION LICENSE

5. RAJA CHITTHI

6. STATE SALES TAX LICENSE

PROJECT EXPERIENCE



While preparing this project we can get the idea about what we would do in future when we make plan for doing this type of project.

The other thing is the experience; we got wonderful experience, now we have clear concept on small scale industries.

This type of project will help us in future. It means it teaches us that how we can calculate cost of our product and project.

So, it was a great experience for us.


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