Project report for Furniture shop

Introduction

The project report for furniture shop is as follows:

The    furniture    sector    in    India    makes    a    marginal contribution    to    the    Gross    Domestic    Product    (GDP), representing about 0.5 per cent of the total GDP.  The major part  of  this  industry,  approximately  85  per  cent  is  in  the unorganised sector. Popularity of traditional furniture has strengthened the demand for wood in the manufacturing of furniture in India. Over the past few years, the utilization of wooden goods in home has increased as people have started using wood for furnishing cupboards, decorating and for other purposes. Apart from this, the demand for engineered wood furniture is rising in metro cities such as Delhi, Mumbai, Bangalore and other major cities. The reason behind this is the rising popularity of ready to assemble home furniture in these cities. The  global  furniture  market  can  be  broadly  categorised into  four  categories  -  domestic  furniture,  office/corporate furniture,   hotel   furniture   and   furniture   parts...

Market potential & Strategy

 The Indian furniture market is estimated to be worth US$ 7,922 million. Of this, wooden furniture accounts for  US$  1,358  million.  About  11 percent (US$  152  million) of this (wooden  furniture)  is  imported  and  imports  are growing  at  50  to  60  per  cent  every  year. India  was  the largest furniture importer in the world .A total of 10,  476  importers  shipped  furniture  to  India  during  this period,  mainly  from  Italy,  Germany,  Spain,  China,  Korea, Malaysia, Indonesia, Philippines and Japan.The  range  of  indigenous  furniture  available  in  India, includes  both  residential  and  contract  system  furniture. Manufacturers   in   India   usually   use   a   three-tier   selling and  distribution  structure,  comprising  of  the  distributor, wholesaler and retailer. The market is mainly concentrated in A, B and C category cities (the top 589 cities). A and B type cities  together  constitute  33  per  cent  of  the  total  market...

PROJECT REPORT

Furniture shop

Furniture Unit

Introduction

The project report for furniture shop is as follows:

The    furniture    sector    in    India    makes    a    marginal contribution    to    the    Gross    Domestic    Product    (GDP), representing about 0.5 per cent of the total GDP.  The major part  of  this  industry,  approximately  85  per  cent  is  in  the unorganised sector. Popularity of traditional furniture has strengthened the demand for wood in the manufacturing of furniture in India. Over the past few years, the utilization of wooden goods in home has increased as people have started using wood for furnishing cupboards, decorating and for other purposes. Apart from this, the demand for engineered wood furniture is rising in metro cities such as Delhi, Mumbai, Bangalore and other major cities. The reason behind this is the rising popularity of ready to assemble home furniture in these cities. The  global  furniture  market  can  be  broadly  categorised into  four  categories  -  domestic  furniture,  office/corporate furniture,   hotel   furniture   and   furniture   parts.   Globally, domestic   furniture   accounts   for   65   per   cent   of   the production value, whilst corporate/office furniture represents  15  per  cent,  hotel  furniture  15  per  cent  and furniture parts 5 per cent.  According   to   a   World   Bank   study,   the   organised furniture industry is expected to grow by 20 per cent every year. A large part of this growth is expected to come from the  rapidly  growing  consumer  markets  of  Asia,  implying significant   potential   for   growth   in   the   Indian   furniture sector.  the  Indian  furniture  market  is  estimated  to  be worth US$ 7,922 million. Of this, wooden furniture accounts for  US$  1,358  million.  About  11  per  cent  (US$  152  million) of  this  (wooden  furniture)  is  imported  and  imports  are growing  at  50  to  60  per  cent  every  year.

Market potential & Strategy

 The Indian furniture market is estimated to be worth US$ 7,922 million. Of this, wooden furniture accounts for  US$  1,358  million.  About  11 percent (US$  152  million) of this (wooden  furniture)  is  imported  and  imports  are growing  at  50  to  60  per  cent  every  year. India  was  the largest furniture importer in the world .A total of 10,  476  importers  shipped  furniture  to  India  during  this period,  mainly  from  Italy,  Germany,  Spain,  China,  Korea, Malaysia, Indonesia, Philippines and Japan.The  range  of  indigenous  furniture  available  in  India, includes  both  residential  and  contract  system  furniture. Manufacturers   in   India   usually   use   a   three-tier   selling and  distribution  structure,  comprising  of  the  distributor, wholesaler and retailer. The market is mainly concentrated in A, B and C category cities (the top 589 cities). A and B type cities  together  constitute  33  per  cent  of  the  total  market. With  a  healthy  economy  and  increased  household  and institutional spending, the market is growing steadily. s  with  the  global  market,  home  furniture  is  the  largest segment    in    the    Indian    furniture    market,    accounting for  about  65  per  cent  of  furniture  sales.  This  is  followed by,  the  office  furniture  segment  with  a  20  per  cent  share and  the  contract  segment,  accounting  for  the  remaining 15 per cent.The  Indian  furniture  industry  covers  the  entire  gamut  of activities,  from  sourcing,  manufacturing  and  distribution, to sales and after sales.

Project at a glance

Name & Address of Unit

Furniture Unit

Furniture Unit

Details of unit
Email : youremail@gmail.com
Phone : 0000000
Constitution : Proprietership
Total project cost : *******
Fixed Capital : *******
Working Capital : *******
Total Bank loan : *******
Promoter(s) contribution : *******
Term loan : *******
Working capital loan : *******
Name & address of promoter(s)
Name : Your name
Address : Address
Phone : 00000
Designation : Proprietor
E-mail : Your email@gmail.com

Project Feasibility Ratio

Debt Service Coverage Ratio (Average) :1.87
Current ratio (Average) :2.63
Year 1Year 2Year 3Year 4Year 5
Current ratio 1.53 2.06 2.62 3.19 3.76
Quick ratio 1.13 1.56 2.10 2.64 3.18
Interest coverage ratio 3.87 5.55 7.00 9.48 14.71
Debt equity ratio 2.863 2.080 1.528 1.020 0.542
TOL/TNW 3.02 1.45 0.79 0.43 0.21
DSCR 1.65 1.86 1.90 1.94 1.97
Gross profit Sales Percentage % 29.23 % 28.54 % 28.18 % 27.86 % 27.50 %
Net profit Sales Percentage % 10.84 % 10.56 % 11.10 % 11.57 % 11.90 %
BEP in % of installed capacity % 49.90 % 27.12 % 27.12 % 27.12 % 27.12 %
BEP in sales of Rs 2,620,800.00 1,840,695.65 1,972,173.91 2,103,652.17 2,235,130.43
Return On Capital Employed 0.26 0.34 0.34 0.33 0.33

Project Feasibility graph

Revenue v/s Expense Expense Splitup
 
Revenue
 
Expense
Net profit Sales % Quick ratio

Project Cost

Sl. no Item Amount Rs
1 Building advance *******
2 Computer, CCTV, office furnitures & security systems *******
3 Electrification *******
4 Preliminary expenses *******
5 Lighting and arrangement *******
6 Working Capital *******
Total *******

 

Working Capital Computation

Sl. no Item Amount Rs
1 Consumables / stock in hand *******
2 Work in progress *******
3 Finished goods *******
4 Working expense. *******
5 Receivables/Sundry debtors *******
6 Payables *******
7 Total working capital *******
8 Own Contribution *******
9 Working capital loan *******

Annual Sales / Revenue

Sl. no Item Rate Quantity Unit Total Rs
1 Revenue from Sales ******* X 12 Month *******
Total *******

Total Yearly Expense

Sl. no Item Amount Rs
1 Rent *******
2 Salary *******
3 Accounts and admin *******
4 Electricity *******
5 Office expense & utilities *******
6 Stock *******
7 Wages *******
8 Marketing/Advertisement *******
9 Telephone & internet charges *******
Total *******

Application of Fund

Sl. no Item Subsidy % No. Rate Amount Rs
1 Building advance ******* 1 ******* *******
2 Computer, CCTV, office furnitures & security systems ******* 1 ******* *******
3 Electrification ******* 1 ******* *******
4 Preliminary expenses ******* 1 ******* *******
5 Lighting and arrangement ******* 1 ******* *******
Total Investment *******
Total Subsidy *******
Net Investment *******

Means of Finance

Sl. no Item Amount
1 Term Loan *******
2 Working capital Loan *******
3 Total loan *******
4 Term Loan contribution *******
5 Working capital contribution *******

Profitability Statement

Year 1(!*) Year 2 Year 3 Year 4 Year 5
Revenue from operation
Sales ***** ***** ***** ***** *****
Add :
Closing stock 0.00 0.00 0.00 0.00 0.00
Total ***** ***** ***** ***** *****
Less :
Opening stock 0.00 0.00 0.00 0.00 0.00
Stock purchase ***** ***** ***** ***** *****
Salary ***** ***** ***** ***** *****
Repairs and maintenance charges ***** ***** ***** ***** *****
gas ***** ***** ***** ***** *****
ELECTRICITY bill ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Gross profit ***** ***** ***** ***** *****
Less :
Rent ***** ***** ***** ***** *****
Telephone/Postal &internet charge ***** ***** ***** ***** *****
Total ***** 0***** ***** ***** *****
Depreciation ***** ***** ***** ***** *****
Interest on TL ***** ***** ***** ***** *****
Interest on WC ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Profit before tax ***** ***** ***** ***** *****
Income Tax ***** ***** ***** ***** *****
Profit after tax ***** ***** ***** ***** *****

Cash flow statement

Cash Inflow Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
Capital 0.63 0.00 0.00 0.00 0.00 0.00
Subsidy 0.00 0.00 0.00 0.00 0.00 0.00
Termloan ***** 0.00 0.00 0.00 0.00 0.00
Profit before tax with interest 0.00 ***** ***** ***** ***** *****
Increase in WC loan 0.00 0.00 0.00 0.00 0.00 0.00
Depreciation 0.00 ***** ***** ***** ***** *****
Increase in Current liability 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Inflow ***** ***** ***** ***** ***** *****
Cash Outflow
Fixed Assets ***** ***** ***** ***** ***** *****
Increase in Current asset 0.00 0.00 0.00 0.00 0.00
Interest on TL 0.00 ***** ***** ***** ***** *****
Interest on WC 0.00 0.00 0.00 0.00 0.00 0.00
Income Tax 0.00 ***** ***** ***** ***** *****
Decrease in Term loan ***** ***** ***** ***** *****
Drawing 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Outflow ***** ***** ***** ***** ***** *****
Opening balance ***** ***** ***** ***** ***** *****
Net Cashflow 0.00 ***** ***** ***** ***** *****
Closing balance 0.00 ***** ***** ***** ***** *****

Balance sheet

Liability Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
A. Share holders funds
Capital ***** ***** ***** ***** ***** *****
Reserve & Surplus 0.00 ***** ***** ***** ***** *****
B.Non current Liabilities
Termloan ***** ***** ***** ***** ***** *****
C.Current Liabilities
Working capital loan 0.00 0.00 0.00 0.00 0.00 0.00
Account payable 0.00 0.00 0.00 0.00 0.00
Total Liability ***** ***** ***** ***** ***** *****
Asset
A. Non current Assets
Fixed Assets ***** ***** ***** ***** ***** *****
B. Current Assets
Inventory 0.00 0.00 0.00 0.00 0.00 0.00
Trade receivables 0.00 0.00 0.00 0.00 0.00 0.00
Cash and cash equivalence ***** ***** ***** ***** ***** *****
Total Asset ***** ***** ***** ***** ***** *****

Repayment of Term loan

Year Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end
1 1 ***** ***** ***** ***** *****
1 2 ***** ***** ***** ***** *****
1 3 ***** ***** ***** ***** *****
1 4 ***** ***** ***** ***** *****
1 5 ***** ***** ***** ***** *****
| | | | | | |
| | | | | | |
5 56 ***** ***** ***** ***** *****
5 57 ***** ***** ***** ***** *****
5 58 ***** ***** ***** ***** *****
5 59 ***** ***** ***** ***** *****
5 60 ***** ***** ***** ***** *****

Debt Service Coverage Ratio

Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Receipts
a).Net Profit 0.00 0.00 0.00 0.00 0.00
b).Depreciation 0.00 0.00 0.00 0.00 0.30
c).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
Repayments
a).Loan Principal 0.00 0.00 0.00 0.00 0.00
b).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
DSCR 0.00 0.00 0.00 0.00 0.00

Depreciation

Particulars Rate Year 1 Year 2 Year 3 Year 4 Year 5
Building 0.00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Computers/ Printers /Photocopier/Electronic gadget 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Furniture & fixtures 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Racks & storage/Interior works 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new item 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Air-conditioning 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Other investments 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Total less depreciation 0.00 0.00 0.00 0.00 0.00
Total written down value 0.00 0.00 0.00 0.00 0.00

Conclusion

The project as a whole describes the scope and viability of the Trading industry and mainly of the financial, technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good return on capital investment. When analyzing the social- economic impact, this project is able to generate an employment of 5 and above. It will cater the demand of Trading and thus helps the other business entities to increase the production and service which provide service and support to this industry. Thus more cyclic employment and livelihood generation. So in all ways, we can conclude the project is technically and socially viable and commercially sound too.

HOW IT WORKS?

More than than 500 + people without any knowledge in finance created this report.

You can also download one of our sample report here 

View PDF

MORE REPORTS

About Us

Finline is an automated platform for financial documents. Your risk-free online tool to create a project report to apply for a bank loan. Be it a new business portfolio or an existing CMA for SME, we have solutions for entrepreneurs & enterprises at every stages

Our Contacts

info@finline.in
Trivandrum,
India

(+91) 884-837-7012

Need help ?
884-837-7012 OR Live Chat
974-669-3220 OR Live Chat