PROJECT REPORT

Of

COTTON WICKS

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Cotton Wicks.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also prepare
project report on any subject as per your requirement.]

Lucknow Office: Sidhivinayak Building ,

27/1/B, Gokhlley Marg, Lucknow-226001

Delhi Office : Multi Disciplinary Training

Centre, Gandhi Darshan Rajghat,
New Delhi 110002

Email : info@udyami.org.in
Contact : +91 7526000333, 444, 555
 PROJECT AT A GLANCE

1 Name of the Entreprenuer XXXXXXX

2 Constitution (legal Status) XXXXXXX

3 Father's/Spouce's Name XXXXXXXX

4 Unit Address : XXXXXXXX

Taluk/Block:
District : XXXXX
Pin: XXXXX State: XXXXX
E-Mail : XXXXX
Mobile XXXXX

5 Product and By Product : Cotton Wicks

6 Name of the project / business activity

proposed :

7 Cost of Project : Rs. 1.00 Lakhs

8 Means of Finance
Term Loan Rs.
KVIC Margin Money Rs.
Own Capital Rs.

9 Debt Service Coverage Ratio :

10 Pay Back Period : Years

11 Project Implementation Period : Months

12 Break Even Point :

13 Employment : 1-2 Persons

14 Power Requirement :

15 Major Raw materials : Cotton, Packing Materials

16 Estimated Annual Sales Turnover : Rs. 10.00 Lakhs

16 Detailed Cost of Project & Means of

Finance

COST OF PROJECT (Rs. In Lacs)

Particulars Amount
Land -
Building & Civil Work -
Plant & Machinery 1.00
Furniture & Fixtures -
Pre-operative Expenses -
Contingencies -
Working Capital Requirement -
Total 1.00
MEANS OF FINANCE
Particulars Amount
Own Contribution 1.00
Bank Finance -
Total 1.00

KVIC Margin Monery

 PROJECT AT A GLANCE

1 Name of the Entreprenuer XXXXXXX

2 Constitution (legal Status) XXXXXXX

3 Father's/Spouce's Name XXXXXXXX

4 Unit Address : XXXXXXXX

Taluk/Block:
District : XXXXX
Pin: XXXXX State: XXXXX
E-Mail : XXXXX
Mobile XXXXX

5 Product and By Product : Cotton Wicks

6 Name of the project / business activity

proposed :

7 Cost of Project : Rs. 1.00 Lakhs

8 Means of Finance
Term Loan Rs.
KVIC Margin Money Rs.
Own Capital Rs.

9 Debt Service Coverage Ratio :

10 Pay Back Period : Years

11 Project Implementation Period : Months

12 Break Even Point :

13 Employment : 1-2 Persons

14 Power Requirement :

15 Major Raw materials : Cotton, Packing Materials

16 Estimated Annual Sales Turnover : Rs. 10.00 Lakhs

16 Detailed Cost of Project & Means of

Finance

COST OF PROJECT (Rs. In Lacs)

Particulars Amount
Land -
Building & Civil Work -
Plant & Machinery 1.00
Furniture & Fixtures -
Pre-operative Expenses -
Contingencies -
Working Capital Requirement -
Total 1.00
MEANS OF FINANCE
Particulars Amount
Own Contribution 1.00
Bank Finance -
Total 1.00

KVIC Margin Monery

PROJECTED BALANCE SHEET

PARTICULARS I II III IV V
Proj Proj Proj Proj Proj

SOURCES OF FUND

Capital A/c
Opening Balance - 2.50 4.24 6.09 8.35
Add: Addition 1.00 - - - -
Add: Net Profit after tax 3.00 3.74 4.36 5.26 6.44
Less : Drawings 1.50 2.00 2.50 3.00 3.50
2.50 4.24 6.09 8.35 11.29

Current Liabilities

Sundry Creditors 0.50 0.55 0.61 0.67 0.73

Other Current Liabilities 0.25 0.28 0.30 0.33 0.37

TOTAL : 3.25 5.06 7.00 9.35 12.38

APPLICATION OF FUND

Fixed Assets ( Gross) 1.00 1.00 1.00 1.00 1.00

Gross Dep. 0.15 0.28 0.39 0.48 0.56
Net Fixed Assets 0.85 0.72 0.61 0.52 0.44

Sundry Debtors 0.33 0.38 0.44 0.51 0.58

Cash and Bank 2.07 3.96 5.95 8.32 11.36

TOTAL : 3.25 5.06 7.00 9.35 12.38

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V
Proj Proj Proj Proj Proj

SALES
Revenue from Operations 10.00 11.50 13.20 15.20 17.50

Total (A) 10.00 11.50 13.20 15.20 17.50

Purchases 5.40 6.00 7.00 8.00 9.00

Electricity Expenses 0.05 0.06 0.06 0.07 0.07

Wages 1.00 1.05 1.10 1.15 1.20

Add: Opening Stock - 0.10 0.12 0.15 0.18

Less: Closing Stock 0.10 0.12 0.15 0.18 0.20

Cost of Production 6.35 7.09 8.13 9.19 10.25

Gross Profit 3.65 4.42 5.07 6.01 7.25

36.50% 38.39% 38.41% 39.56% 41.41%

Selling & Admin Expenses 0.50 0.55 0.61 0.67 0.73

Depreciation 0.15 0.13 0.11 0.09 0.08

0.65 0.68 0.71 0.76 0.81

NET PROFIT 3.00 3.74 4.36 5.26 6.44

30.00% 32.50% 33.00% 34.58% 36.78%

ADD : DEPRECIATION 0.15 0.13 0.11 0.09 0.08

CASH ACCRUALS 3.15 3.87 4.46 5.35 6.51

PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V
Proj Proj Proj Proj Proj

SOURCES OF FUND
Incr. in Capital 1.00 - - -
Net Profit after tax 3.00 3.74 4.36 5.26 6.44
Depriciation & Exp. W/off 0.15 0.13 0.11 0.09 0.08
Incr. in Creditors 0.50 0.05 0.06 0.06 0.07
Incr. in Provisions 0.25 0.03 0.03 0.03 0.03

TOTAL : 4.90 3.94 4.55 5.44 6.61

APPLICATION OF FUND
Incr. in Fixed Assets 1.00 - - - -
Incr. in Debtors 0.33 0.05 0.06 0.07 0.08
Drawings 1.50 2.00 2.50 3.00 3.50

TOTAL : 2.83 2.05 2.56 3.07 3.58

Opening Cash & Bank Balance - 2.07 3.96 5.95 8.32

Add : Surplus 2.07 1.89 1.99 2.37 3.04

Closing Cash & Bank Balance 2.07 3.96 5.95 8.32 11.36
Assumptions for the Project:

*There are two types of Cotton wicks manufactured- Round Cotton Wicks and Long Cotton Wicks

*The Main raw raw material required is Cotton

*Other Consumable may include Packing Material depending upon the packing of finished goods

*The Manufacturing Capacity of Machine:

Round Cotton Wicks : 3.00 kg/day (Shift of 7-8 hours per day)
Long Cotton Wicks : 3.00 kg/day (Shift of 7-8 hours per day)

*The Average quantity of Cotton consumed is 3 kg/day per machine

*The Quantity of Raw Material Required and Processed is 3 kg/day per machine

*The Average cost of 3 kg cotton is Rs. 300/kg i.e. Rs.900/-

*The Average Selling price of Manufactured product is:

Round Cotton wicks : 500.00 Rs/Kg

Long Cotton wicks : 600.00 Rs/Kg

(Note: The Selling Price of Manufactured cotton wicks may vary depending upon the quality and
value addition in the packing of the Product)
DEPRECIATION SCHEDULE

Description Plant & Machinery Total

15.00%

Opening Balance 0.00 0.00

Addition 1.00 1.00

1.00 1.00
Less : Depreciation 0.15 0.15

WDV at the end of Ist Year 0.85 0.85

Addition 0.00 0.00
0.85 0.85
Less : Depreciation 0.13 0.13
WDV at the end of IInd Year 0.72 0.72
Addition 0.00 0.00
0.72 0.72
Less : Depreciation 0.11 0.11
WDV at the end of IIIrd Year 0.61 0.61
Addition 0.00 0.00
0.61 0.61
Less : Depreciation 0.09 0.09
WDV at the end of IV th Year 0.52 0.52
Addition 0.00 0.00
0.52 0.52
Less : Depreciation 0.08 0.08
WDV at the end of V th year 0.44 0.44
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN assume no
financial liability to anyone using the content for any purpose. All the materials and content
contained in Project report is for educational purpose and reflect the views of the industry
which are drawn from various research material sources from internet, experts, suppliers and
various other sources. The actual cost of the project or industry will have to be taken on case
to case basis considering specific requirement of the project, capacity and type of plant and
other specific factors/cost directly related to the implementation of project. It is intended for
general guidance only and must not be considered a substitute for a competent legal advice
provided by a licensed industry professional. SAMADHAN hereby disclaims any and all
liability to any party for any direct, indirect, implied, punitive, special, incidental or other
consequential damages arising directly or indirectly from any use of the Project Report
Content, which is provided as is, and without warranties.