PROJECT REPORT
Furniture Unit
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
|
: |
[email protected]
|
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 protected] |
|
|
Project Feasibility Ratio
Debt Service Coverage Ratio (Average) |
:1.87 |
Current ratio (Average) |
:2.63 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 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 |
15.93 |
***** |
***** |
***** |
***** |
***** |
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 |
7.20 |
***** |
***** |
***** |
***** |
***** |
Salary |
3.60 |
***** |
***** |
***** |
***** |
***** |
Repairs and maintenance charges |
0.24 |
***** |
***** |
***** |
***** |
***** |
gas |
0.12 |
***** |
***** |
***** |
***** |
***** |
ELECTRICITY bill |
0.12 |
***** |
***** |
***** |
***** |
***** |
Total |
|
***** |
***** |
***** |
***** |
***** |
Gross profit |
|
***** |
***** |
***** |
***** |
***** |
Less : |
|
|
|
|
|
|
Rent |
0.12 |
***** |
***** |
***** |
***** |
***** |
Telephone/Postal &internet charge |
0.12 |
***** |
***** |
***** |
***** |
***** |
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.