This document provides details for a proposed small business producing printed cotton sarees called Sandhya Sarees. It outlines the management setup, production process, machinery requirements, staffing needs, raw material costs, and financial projections for the business. The unit will be located in Rajkot, Gujarat, where raw materials, labor, transportation and markets are readily available. It expects to produce 115,000 sarees annually and reach profitability within 5 years of operations.

1. Business planning
Report
On
Printed Dress Materials
Prepared By
Name : MANSI
B.BHATU
Class : MBA SEM 3rd
Enroll No. : 2012
Academic Year : 2012-13
College :
N. R. VEKARIA JUNAGAHD
Submitted To :
DR.RAJENDRA PATEL
1

2. DECLARATION
I undersigned MANSI B. BHATU , a student of
MBA SEM 3rd. here by declare that the project work
presented in this report is my own work and which is
submitted to Dr Rajendra Patel from N R VEKARIA.
This report has not been submitted previously to
another university for another examination.
Date:
Place: Junagadh
-------------
(Mansi b.bhatu)
2

3. P REFACE
M.B.A. course is a special course, which prepares
young entrepreneurs, & it’s very essential that they
should have the knowledge about how the small-scale
business can be started or which type of project is to be
submitted to the banks and other financial institution for
the purpose of loan.
One of the subject namely entrepreneurship and
management of small-scale business has covered this
aspect with a view to create and develop entrepreneurial
skill among the students.
Today in the growth rate of Indian Economy, S.S.I. plays
a vital role by contribution 40%, to the total national
income.
Hence, university has included preparation of such project
within the preview of its syllabus.
3

4. A CKNOWLEDGEMENT
It is really a matter of great pleasure for me to
present their creative and practical work. At this stage
product every entrepreneur prepares report of learning
and it before starting of actual production.
I would like to express my deep gratitude to Dr.
Rajendr Patel for his co-operation and guidance. Without
his support my report would have been very difficult to
complete.
I am also thankful to all those who consisted me in
preparation of the manuscript. I would like to thank my
friends and family member who helped me in this project.
Date
Place: Junagadh
-------------
(mansi b.bhatu)
4

5. I NDEX
SR. PAGE
NO. PARTICULAR NO.
1. Introduction
2. Project at a glance
3. Management Setup
4. Organization Structure
5. Justification of Location
6. Product Detail
7. Market potential
8. Raw Materials
9. Machines
10. Manufacturing Process
11. Production Capacity Schedule
12. Staff & Labour
13. Financial Details
14. Cost of Production
15. Total Working Capital Requirement
16. Total Project Fund
17. Sources of Finance
18. Interest on Borrowed Capital
19. Depreciation
20. Annual Cost of Production
21. Sales Forecast (5 years)
22. Fixed & Variable Cost Schedule
23. Break-Even Analysis
24. Term Loan Repayment
25. Cost of Capital
26. Return on Investment
5

6. 27. Profitability
28. Risk Factors
29. Name & Address of Raw Material
Supplier
30. Name & Address of Machine Supplier
31. Projected Operating Statement
32. Projected Balance Sheet
33. Projected Cost Sheet
34. Particulars of Raw Material Consumed
35. Particulars of Finished Goods
36. Schedule for Fixed assets
37. Schedule for Factory Overheads
38. Schedule for Selling & Administration
Overheads
39. Disclosure of Significant Accounting
Policies
40. Conclusion
6

7. Introduction
In today’s era where global competition exists, there
is a need for professional management in every sector.
Hence, the economists always say that the S.S.I. is the
only base or pillar of the Indian Economy. Most of the
businesses carried out in India are on a small scale.
The S.S.I. is enjoying the success of department
economy because it is the main part of the economy. It
also provides the platform and opportunity to the new
entrepreneur. It provides the employment opportunities,
raw material or inputs to large scale and middle scale
industries.
S.S.I. is the base for the middle and large scale
industries. It also gives a chance to new entrepreneurs to
start an unit with a limited capital and it would ultimately
play a major role in sharing the development of the
company.
The S.S.I. makes the perfect entrepreneurs through
experience and provide high quality of development
towards personality, skill and sense.
7

8. Definition
According to the Government of India – “The
industries whose investment in the plant and machinery is
upto Rs. 1 crore is termed as Small Scale Industry.”
- Budget of A.D. 2001.
The definition of S.S.I. does not remain certain and
constant because with the passing of time their parameters
keep changing.
In India, the literacy and education is now
increasing at a faster rate than before and so now more
people have now started moving towards the industry
from agriculture. These people can get self-development
and self-esteem with the help of S.S.I. only.
In India, before 1991, great importance was given to
the large-scale industries and there was hazardous
avoidance of small-scale sector, but after 1991,
Government realized that only S.S.I. can lead to the
development of the Indian Economy.
Hence, more emphasis is laid towards the S.S.I.
8

9. P ROJECT A T G LANCE
Name of the Unit Sandhya Prints
Registered Office Plot No. 205, GIDC,
Lodhika,
Kalawad Road,
Metoda,
Rajkot-360 005.
Location of the Unit Plot No. 205, GIDC,
Lodhika,
Kalawad Road,
Metoda,
Rajkot-360 005.
Form of Organization Ownership Firm
Name of Owner Mansi bhatu
Name of Product Sandhya Sarees
Size of the Unit Small Scale
SSI Registration Number Applied for
Subsidy Registration No Applied for
Cost of Project Rs. 60,40,550
Means of Finance HDFC Bank
Own Capital
9

10. I MPLEMENTATION S CHEDULE
The major activities in the implementation of the
project have been listed and the average time for
implementation is estimated at 8 months
No. Particulars Months
1. Scheme Preparation & Approval 1
2. SSI Provisional Registration 1-2
3. Sanction of loan by financial institution 2
4. Installation of Machinery 2-3
5. Procurement of Raw material 1
6. Recruitment of technical personnel 1
Provision of other facilities like water,
7. 1
electricity etc.
Trial and Production will start from 6 t h month.
10

11. M ANAGEMENT S ET – U P
Name Mansi bhatu
Age 21 Years
Address 19 t h B kamnathnagar
madhuram junagadh.
Academic Qualification MBA
Role in the Unit Marketing
Financial Contribution 60 % of Owned Capital
Experience Taken Training in units like:
Arvind Mills
Bombay Dyeing
11

12. O RGANIZATIONAL S TRUCTURE
Owner
Production Personnel Marketing Finance
Worker Manager Salesman Accountant
12

13. J USTIFICATION OF L OCATION
Location plays an important role in starting industry.
Before starting any industry entrepreneurs have to take a
decision about the location of industry. They have to
select that location where all the facilities must be
available. They have to take right decision about the
selection of location because once a location selected it
cannot be changed in the near future. The following
should be taken into consideration .
1. Availability of Raw Materials
Raw Material is the most basic and one of the
key element of production. So raw material of right
quality, right quantitiy, on right time and at right
price and time is very important.
There are more than 100 factories located in
Rajkot for printing dress materials, printing sarees
and ranges. Generally raw material in the form of
the cloth is the most important element and that is
easily available at Shapar .
13

14. 2. Availability of Transport Facility
Shapar is a big Industrial area, so transport
facility in the form of Road Transport and Railway
Transport is easily available. So there is no question
of difficulty in transportation.
3. Availability of Labour
Both Skilled and unskilled labour is easily and
cheaply available in the city.
4. Availability of Market
Demand is ever increasing not only in the
major cities like Ahmedabad, Baroda, Surat etc. but
also in other states like Tamil Nadu, Bihar etc.
5. Availability of Financial Facilities
There are many Nationalized and Co-operative
Banks and many money – lenders who can satisfy
the financial requirements. Moreover, GSFC
provides loans to help the Industries. The remaining
shall be met with our own contribution.
Availability of Power and Water
Electricity and Water are must for each and
every process in any industry. Power and water are
provided at concessional rates in Shapar.
14

15. P RODUCT D ETAILS
Introduction
Sarees are popular attire in almost all the parts of
India. Infact, saree can be said to be National Dress of the
ladies in India. Since decades, saree has added beauty to
the ladies of India and it has perhaps, became the of
India. Cotton sarees are very comfortable to wear and are
affordable too. Cotton Sarees cost near about 100 to 130
Rs. and so its affordable to the ordinary housewife of
India. Among the wide variety of cotton sarees on offer in
the market place, the printed cotton sarees are hot cakes,
and so, manufacturing of printed cotton sarees is a
lucrative business today.
Uses of the Product
Cotton Sarees have always been a hot item. This is
because they are comfortable and affordable. Besides, its
keeps one in line with the fashion trends.
Cotton Sarees are a rage amongst housewives in
India, as they are most comfortable and suits the daily
household chores.
Besides, the people wear Cotton Sarees outside as
well. Cotton Sarees are also favourite with collegians on
particular celebration days. They are best to wear in the
scorching summers of Rajkot.
B RAND N AME
15

16. Brand also plays an important role in marketing.
Good brand has to face less competition in the increasing
market. The brand name for cotton sarees is SANDHYA
SAREES.
M ARKET P OTENTIAL
Printed Sarees practically has a market in whole of
India. Rajkot in Gujarat is nationally renowned for the
quality and variety of its Printed Cotton Sarees. So, this
factor makes it meet with the changing trends seeping into
the market very quickly and so helps it making up to date
and in line with current trend in fashion.
Due to the above mentioned reasons, the market for
Printed Cotton Sarees is an ever-expanding one.
16

17. R AW M ATERIALS
For Printing
Gum
Rasist Salt
Soda Bicarbonate
Emulsion
Dyes
Wax
For Screen Designs
Screen Frames
Terelance
PVC Resin
Kodak Papers
For Silicate Process & Washing
Cride Oil
Silicate Lisapol Liquid
Softner, Starch and Tinopal
17

18. P RODUCTION P ROCESS
R ECEIVING OF R AW M ATERIALS
C UTTING
P RINTING
S ILICATE P ROCESS
W ASHING
D RYING
F OLDING
I RONING
18

19. M ANUFACTURING P ROCESS IN
D ETAIL
1. Receiving of Bales
The first step in the process of making sarees
is receiving of bales, generally of sizes 1800 meters
to 2000 meters of white-grey cotton cloth.
2. Cutting
The next step is to cut the lump of cloth into
pieces of 6.25 meters so that it can be sent to be
print.
3. Printing
For printing sarees, the pieces so cut are
placed on a wax table. Wax table is table on which
wax is applied so that the cloth can stick on to the
layer of wax which provides the base for printing.
The printing is then started on the sarees by
selecting the designs and blocks. Required color is
poured on to the screen frames and the stepper is
passed on from one side to another by two persons
simultaneously.
4. Drying Stage
19

20. After the printing process, the next step is to
dry the printed sarees. They are generally dried in
sunlight or under the fans.
5. Silicate Washing
After drying, the printed sarees are sent for
silicate washing. This is mainly done by silicate
process to fix the color. For making the color bright
and fast, silicate washing is necessary.
After silicate washing, the printed sarees are
washed with fresh water to make them soft. These
processes are done for the purpose of improving the
quality and brightness of the cloth.
6. Folding & Ironing
After washing the cloth and drying it,the next
step is to take the printed sarees for folding and
ironing. Folds are made to remove any crease and
then the saree is ironed and the final product is
ready.
20

21. P RODUCTION C APACITY
S CHEDULE
Production Capacity 115000 Units
No. of Working Days in a
25
month
No. of Working Days in a
300
Year
No. of Shifts per day 1
No. of Working hours per shift 8
Production Capacity per
7500 Units
month
21

22. S TAFF & L ABOUR
No. Staff & Labour No.
1. Factory Staff
 Unskilled 8
2. Supervisor 1
3. Accountant 1
4. Peon cum Watchman 1
5. Manager 1
6. Dyer 1
Total 13
22

23. 23

24. Total Fixed Assets
Sq. Rate
Particulars Feet (Rs.) Amount Total
Land 1500 600 900000 900000
Building 1000 1000 1000000 1000000
Printing Tables 8 30000 240000 240000
Furniture & Fixtures 1 50000 50000 50000
Electrification and Installation 1 25000 25000 25000
Computers & Telephones 1 50000 50000 50000
Electric Motors 1 20000 20000 20000
Preliminary & Preoperative
Expenses 1 50000 50000 50000
Total 2335000
24

25. Raw Materials Requirements
Name Rate Reqd./ Day Reqd./ Month Reqd./ Year
of per
Material Saree Quantity Amount Quantity Amount Quantity Amount
Cotton
71.5 300 21450 7500 536250 90000 6435000
Cloth
Colour 6 300 1800 7500 45000 90000 540000
Gum 0.8 300 240 7500 6000 90000 72000
Wax 0.25 300 75 7500 1875 90000 22500
Washing
300 300 7500 7500 90000 90000
Expenses 1
Silicate 1.5 300 450 7500 11250 90000 135000
Center
300 1050 7500 26250 90000 315000
Finishing 3.5
Total 84.55 25365 634125 7609500
25

26. Staff & Labour Salary
Amount
No.of
Particulars Rate per Amount
Persons
month
Workers 8 2500 20000 240000
Dyer 1 1500 1500 18000
General Manager 1 7000 7000 84000
Supervisor 1 1500 1500 18000
Accountant 1 2500 2500 30000
Peon Cum Watchman 1 2000 2000 24000
Total 13 34500 414000
26

27. Utilities & Other Expenses
Amt Per Amt Per
Particulars Month Annum
Electricity 5000 60000
Water Expenses 400 4800
Postage & Courier Expenses 500 6000
Stationery & Printing 800 9600
Repairing & Other Expenses 400 4800
Telephone Bill Expenses 1200 14400
Transportation Expenses 300 3600
Packaging 22500 270000
Miscellaneous Expenses 500 6000
Total Expenses 31600 379200
27

28. Total Working Capital Requirement
Particulars Monthly (Rs.) Yearly (Rs.)
Raw Materials 634125 7609500
Staff & Labour Salary 34500 414000
Other Expenses & Utilities 31600 379200
Total Capital Invested: 700225 8402700
Total Project Fund
Particulars Amount (Rs.)
Fixed Capital 2335000
Working Capital 700225
Total Capital Invested: 3035225
28

29. Sources of Finance
Particulars % Of Total Capital Amount
Own Capital: 50 1821135
HDFC Bank Loan 50 1214090
Total Capital: 3035225
Interest on Borrowed Capital
Interest Rs.
Details Amount Rate (%)
(p.a)
IDBI Bank 1250000 13 162500
Total Interest On Capital: 900000
Interest on Own Capital
Interest Rs.
Details Amount Rate (%)
(p.a)
Anshu Bhatia 1825000 9 164250
Total Interest On Capital: 164250
29

30. Depreciation
Particulars Amount Rate (%) Depreciation
Building 1000000 10 100000
Printing Tables 240000 5 12000
Computers 50000 40 20000
Other Assets 70000 15 10500
Total Depreciation: 142500
Annual Cost Of Production
Particulars Amount (Rs.)
Raw Materials 7609500
Recurring Expenses 379200
Depreciation 142500
Interest on Capital:
Own Capital 164250
Borrowed Capital 162500
Total Capital Invested: 8457950
30

31. Sales Forecast
Year Units Per Annum Rate (S.P) Amount (Rs.)
1 90000 100 9000000
2 95000 100 9500000
3 100000 100 10000000.5
4 110000 103 11330000.5
5 115000 105 12075000
Fixed Cost
Particulars Amount (Rs.)
Depreciation 142500
Interest on Capital 326750
Salary (40%) 174000
Other expenses & Utilities (40%) 151680
Total Fixed Cost 794930
Variable Cost
Particulars Amount (Rs.)
Raw Materials 7609500
Salary (60%) 240000
Other expenses & Utilities (60%) 227520
Total Variable Cost: 8077020
31

32. Loan Re-Payment Schedule
Opening Closing
Period Balance Installment Balance Interest
1st Year 1250000 250000 1000000 162500
2nd
Year 1000000 250000 750000 162500
3rd Year 750000 250000 500000 162500
4th Year 500000 250000 250000 162500
5th Year 250000 250000 0 162500
Profitability & Ratio Analysis
Particulars Amount (Rs.)
Sales 9000000
Less: Cost Of Production 8131200
Earning Before Interest &
Tax 868800
Less: Interest on Capital 326750
Earning Before Tax 215300
Less: Tax 18060
Net Profit After Tax 197240
32

33. Schedule of Written Down Value of Fixed Assets
Net
Gross Block Depreciation Block
Particulars Opening During Written
Total
+ Total the Down
Accumulated
Addition Year Value
Land 900000 900000 - - 900000
Building 1000000 1000000 - 100000 900000
Printing Tables 240000 240000 - 12000 228000
Computers 50000 50000 - 20000 30000
Other Fixed
Assets 70000 70000 - 10500 59500
Total: 2260000 2260000 - 142500 2117500
33

34. Cost Sheet for the year
Amount
Particulars (Rs.)
Raw Materials Consumed
Purchases 7609500
Add: Opening Stock -
Direct Wages to
Add: Workers:
Unskilled 240000
Add: Direct expenses:
Electricit 60000
Water Expenses 4800
PRIME COST: [A] 7914300
Salary to Dyer 18000
Salary to Supervisor 18000
Repairs & other expenses 4800
Depreciation:
Building 100000
Plant & Machinery 12000
FACTORY COST: [B] 152800
Salary to Office & Admn.
Staff
General Manager 84000
Accountants 30000
Peon 24000
Stationery Expenses 9600
Telephone Expenses 14600
Miscellaneous Expenses 6000
Depreciation:
Computer 20000
34

35. Other fixed assets 10500
Interest on own capital 164250
OFFICE & ADMN. COST:
[C] 362950
COST OF PRODUCTION:
8430050
[A] + [B] + [C]
Add: Opening Stock of F/G -
Less: Closing Stock of F/G 0
COST OF GOODS SOLD: 8430050
Add:
Transporatation Expenses 3600
Packaging 270000
SELLING &
DISTRIBUTUON COST: 273600
COST OF SALES:
8703650
(COGS + S&D COST)
SALES 9000000
PROFIT 296350
35

36. Operating Statement for the year
Amount
Particulars (Rs.)
SALES: [A] 9000000
Cost Of Operation:
Raw Materials 7609500
Direct Wages to Workers:
Unskilled 240000
Direct expenses & utilities:
Electricity
Expenses 60000
Water Expenses 4800
7914300
Opening stock of
Add: R/M -
Opening stock of
F/G
Closing stock of
Less: R/M -
Closing stock of
F/G
Total Cost Of Operation: [B] 7914300
GROSS PROFIT: [A - B] 1085700
Indirect Expenses:
Total factory cost 152800
Total office &
admn. cost 198700
Total selling &
dist. cost 273600
Total Indirect Expenses: 625100
36

37. Earning Before Interest & Tax
(Gross profit - Total indirect 460600
expenses)
Less: Interest
Borrowed Capital 162500
Earning Before Tax
298100
(E.B.I.T - Interest)
Less: Tax 595768
NET PROFIT AFTER TAX:
-297668
(Earning Before Tax - Tax)
37

38. Trading Account
Amount Amount
Particulars (Rs.) Particulars (Rs.)
By Sales
To Purchase A/c 7609500 A/c 9000000
To Electricity III Electricity
Phase A/c Expenses 60000
To Freight Inward Water
A/c Expenses 4800
To Salary A/c:
Unskilled
Labour 240000 240000
To Gross Profit 1085700
9000000 9000000
38

39. 1st year
Profit and Loss Account
Amount Amount
Particulars (Rs.) Particulars (Rs.)
To Salary A/c: 174000
General Mgr 84000 By Gross Profit 1085700
Accountants 30000
Dyer 18000
Peon 24000
Supervisor 18000
To Depreciation: 142500
Building 100000
Plant & Mach. 12000
Other fixed
asset 10500
Computers 20000
To Stationery Exp 9600
Telephone Exp 14600
Misc Exp 6000
Interest On
Loan 162500
Trasnport Exp 3600
Packaging Exp 36000
Loan
Installment 250000
NET PROFIT 286900
1085700 1085700
39

40. 1st year
Balance Sheet
Amount Amount
Liabilities (Rs.) Assets (Rs.)
Capital FIXED
Accounts: ASSETS:
Anshu Bhatia 1825000 Land 900000 900000
Secured 100000
Loans: Building 0
H.D.F.C Bank Less:
Loan 1250000 Depreciation 100000 900000
Printing
Tables 240000
Less:
Depreciation 12000 228000
Other Assets
Furniture 50000
Less:
Depreciation 7500 42500
Computer 50000
Less:
Depreciation 20000 30000
Motors 20000
Less:
Depreciation 3000 17000
Bank
Balance:
40

41. IDBI Bank
A/c 400000
Cash - in -
hand:
Cash Balance 50000
41

42. 2nd year
Trading Account
Amount Amount
Particulars (Rs.) Particulars (Rs.)
By Sales
To Purchase A/c 7609500 A/c 9000000
To Electricity III Electricity
Phase A/c Expenses 60000
To Freight Water
Inward A/c Expenses 4800
To Salary A/c:
Unskilled
Labour 240000 240000
To Gross Profit 1085700
9000000 9000000
42

43. 2nd
Year
Profit and Loss Account
Amount Amount
Particulars (Rs.) Particulars (Rs.)
To Salary A/c: 174000
Gross
General Mgr 84000 By Profit 1085700
Accountants 30000
Dyer 18000
Peon 24000
Supervisor 18000
Depreciation
To : 142500
10000
Building 0
Plant &
Mach. 12000
Other fixed
asset 10500
Computers 20000
Stationery
To Exp 9600
Telephone
Exp 14600
Misc Exp 6000
Interest On 16250
Loan 0
Trasnport
Exp 3600
Packaging
Exp 36000
Loan 25000
Installment 0
NET
PROFIT 286900
43

44. 44

45. 2nd year
Balance Sheet
Amount Amount
Liabilities (Rs.) Assets (Rs.)
Capital FIXED
Accounts: ASSETS:
Anshu Bhatia 1825000 Land 900000 900000
Secured 100000
Loans: Building 0
H.D.F.C Less:
Bank Loan 1250000 Depreciation 100000 900000
Printing
Tables 240000
Less:
Depreciation 12000 228000
Other
Assets
Furniture 50000
Less:
Depreciation 7500 42500
Computer 50000
Less:
Depreciation 20000 30000
Motors 20000
Less:
Depreciation 3000 17000
Bank
45

46. Balance:
IDBI Bank
A/c 400000
Cash - in -
hand:
Cash
Balance 50000
46

47. 3rd Year
Trading Account
Amount Amount
Particulars (Rs.) Particulars (Rs.)
By Sales
To Purchase A/c 7609500 A/c 9000000
To Electricity III Electricity
Phase A/c Expenses 60000
To Freight Water
Inward A/c Expenses 4800
To Salary A/c:
Unskilled
Labour 240000 240000
To Gross Profit 1085700
9000000 9000000
47

48. 3rd
Year
Profit and Loss Account
Amount Amount
Particulars (Rs.) Particulars (Rs.)
To Salary A/c: 174000
Gross
General Mgr 84000 By Profit 1085700
Accountants 30000
Dyer 18000
Peon 24000
Supervisor 18000
Depreciation
To : 142500
10000
Building 0
Plant &
Mach. 12000
Other fixed
asset 10500
Computers 20000
Stationery
To Exp 9600
Telephone
Exp 14600
Misc Exp 6000
Interest On 16250
Loan 0
Trasnport
Exp 3600
Packaging
Exp 36000
Loan 25000
Installment 0
NET
PROFIT 286900
48

49. 3rd Year
Balance Sheet
Amount Amount
Liabilities (Rs.) Assets (Rs.)
Capital FIXED
Accounts: ASSETS:
Anshu Bhatia 1825000 Land 900000 900000
Secured 100000
Loans: Building 0
H.D.F.C Less:
Bank Loan 1250000 Depreciation 100000 900000
Printing
Tables 240000
Less:
Depreciation 12000 228000
Other
Assets
Furniture 50000
Less:
Depreciation 7500 42500
Computer 50000
Less:
Depreciation 20000 30000
Motors 20000
Less:
Depreciation 3000 17000
Bank
49

50. Balance:
IDBI Bank
A/c 400000
Cash - in -
hand:
Cash
Balance 50000
50

51. C ONCLUSION
In the business planning report on Printed Cotton
Sarees I have discussed all financial data and other
relevant information.
The market of Printed Cotton Sarees is expanding
and demand for the product is increasing day by day. The
return in this business is also satisfactory.
At last it can be said that future of this product is
very bright.
With the expectation of high profitability and good
completing of high is assumed that it would be the perfect
product to be manufactured in today’s environment.
51