PROJECT REPORT

Of

CURTAIN MAKING UNIT

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Curtains Making unit.

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 xxxxxxxxxx

2 Constitution (legal Status) xxxxxxxxxx

3 Father / Spouse Name xxxxxxxxxxxx

4 Unit Address : xxxxxxxxxxxxxxxxxxxxxxx

District : xxxxxxx
Pin: xxxxxxx State: xxxxxxxxxx
Mobile xxxxxxx

5 Product and By Product : CURTAINS

6 Name of the project / business activity proposed : CURTAINS MAKING UNIT

7 Cost of Project : Rs.9.5 Lakhs

8 Means of Finance
Term Loan Rs.4.05 Lakhs
Own Capital Rs.0.95 Lakhs
Working Capital Rs.4.5 Lakhs

9 Debt Service Coverage Ratio : 3.00

10 Pay Back Period : 5 Years

11 Project Implementation Period : 5-6 Months

12 Break Even Point : 29%

13 Employment : 10 Persons

14 Power Requirement : 12.00 HP

15 Major Raw materials : Yarn (Polyester, Cotton), Consumables lile threads, scissors, colors

16 Estimated Annual Sales Turnover (Max Capacity) : 121.55 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Plant & Machinery 3.50
Furniture & Fixtures 1.00
Working Capital 5.00
Total 9.50

MEANS OF FINANCE
Particulars Amount
Own Contribution 0.95

Working Capital(Finance) 4.50

Term Loan 4.05

Total 9.50
 CURTAIN MAKING UNIT

Introduction:
Beautifying one’s house has been an ancient tradition since ages; the rich do it with
expensive materials while the lower income households too decorate their homes in their
own creative ways. To cover your windows and to obscure any unpleasant
spaces, curtains are an essential fixture. There is no doubt that window curtains are not
only a necessity but are also a decorative accessory that plays an important role in
elevating the decor. When it comes to event decorations, using backdrop curtains is a
thoughtful choice. Other than providing their basic function of covering windows or event
venue walls, curtains have several other significant benefits as well. Curtains can also be
used to create a segregated area. A room divider curtain can help you separate areas
without confining space. Other room divider options tend to make the room smaller,
whereas living room curtains are flexible and can easily be drawn to divide the area when
needed.

Uses & Market Potential:

Curtains provide protection from external elements such as weather changes, UV light,
etc. To cover your windows and to obscure any unpleasant spaces, curtains are an
essential fixture. There is no doubt that window curtains are not only a necessity but are
also a decorative accessory that plays an important role in elevating the décor.
Curtains are often hung on the inside of a building's windows to block the passage of
light. For instance, at night to aid sleeping, or to stop light from escaping outside the
building (stopping people outside from being able to see inside, often for privacy
reasons). Curtain and Window Blinds Market size is forecast to exceed USD 26.8 billion
by 2027. Growing residential & commercial building developments along with rapid
urbanization is likely to drive the curtains and window blinds industry growth. The rising
disposable income of the consumer group and growing demand for enhancing aesthetics
of home with upgrade of window curtains and decor items will drive industry penetration.
Modern architecture is focused on the utilization of new tools and designs to provide
improved and sustainable aesthetics. Curtain walls are anticipated to provide
sophisticated and unique appearance to modern buildings. Further, real estate developers
are increasingly incorporating curtain walls in their commercial building projects to cater
to corporate and hospitality sectors.

Product:
CURTAIN

Raw Material:
1. Yarn (Polyester, Cotton)
2. Consumables lile threads, scissors, colors

Manufacturing Process:

Designing

Stiching

Rolling

Drying

Hemming

Cutting & Sewing

Fig. 1 – Process Flowchart

Area:
The industrial setup requires space for Inventory, workshop or manufacturing area, space
for power supply utilities dyeing, designing and finishing area. Thus, the approximate
total area required for complete small scale factory setup is 1000-1500Sq. ft.
approximately.

Cost of Machines:
S No. Machine Unit Price (INR)
1. Jacquard Raschel curtain-making machine 1 125,500/-
2. Single Needle Lockstitch Machine with Edge 1 85,000/-
Trimmer
3. Three Threads Over lock Machine 1 29,500/-
4. Blind Stitch Machine for Heming 1 55,000/-
5. Single-Needle Bar-tack Machine 1 55,000/-
Total 3,50,000/-

Power Requirement- - The estimated Power requirement is taken at 12

HP.

Manpower Requirement– Following manpower is required:

• Skilled/unskilled worker-3
• Helper- 3
• Machine Operator- 2
• Sales Personal and Accountant- 2

FINANCIALS
PROJECTED BALANCE SHEET

PARTICULARS I II III IV V

SOURCES OF FUND
Capital Account
Opening Balance - 1.85 2.95 4.35 5.74
Add: Additions 0.95 - - - -
Add: Net Profit 0.90 1.40 2.40 3.39 4.27
Less: Drawings - 0.30 1.00 2.00 2.80
Closing Balance 1.85 2.95 4.35 5.74 7.21
CC Limit 4.50 4.50 4.50 4.50 4.50
Term Loan 3.60 2.70 1.80 0.90 -
Sundry Creditors 1.95 2.16 2.38 2.61 2.84

TOTAL : 11.90 12.31 13.03 13.74 14.55

APPLICATION OF FUND

Fixed Assets ( Gross) 4.50 4.50 4.50 4.50 4.50

Gross Dep. 0.63 1.16 1.62 2.02 2.36
Net Fixed Assets 3.88 3.34 2.88 2.48 2.14

Current Assets
Sundry Debtors 2.61 3.00 3.33 3.69 4.05
Stock in Hand 44.65
65 55.17
17 55.72
72 66.30
30 66.90
90
Cash and Bank 0.77 0.81 1.09 1.27 1.45

TOTAL : 11.90 12.31 13.03 13.74 14.55

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

A) SALES
Gross Sale 78.30 89.96 100.04 110.57 121.55

Total (A) 78.30 89.96 100.04 110.57 121.55

B) COST OF SALES

Raw Material Consumed 58.50 64.84 71.40 78.19 85.20

Elecricity Expenses 1.61 1.75 1.88 2.01 2.15
Repair & Maintenance 1.17 1.35 1.50 1.66 1.82
Labour & Wages 10.71 11.78 12.96 14.26 15.68
Depreciation 0.63 0.54 0.46 0.40 0.34

Cost of Production 72.62 80.25 88.20 96.51 105.19

Add: Opening Stock /WIP - 2.70 3.01 3.34 3.69

Less: Closing Stock /WIP 2.70 3.01 3.34 3.69 4.06

Cost of Sales (B) 69.92 79.94 87.86 96.16 104.83

C) GROSS PROFIT (A-B) 8.38 10.01 12.17 14.41 16.72

10.70% 11.13% 12.17% 13.03% 13.76%
D) Bank Interest i) (Term Loan ) 0.44 0.36 0.26 0.16 0.06
ii) Interest On Working Capital 0.50 0.50 0.50 0.50 0.50
E) Salary to Staff 5.29 6.14 7.12 8.26 9.58
F) Selling & Adm Expenses Exp.
Exp 1 25
1.25 1 62
1.62 1 90
1.90 2 10
2.10 2 31
2.31

TOTAL (D+E+F) 7.48 8.61 9.78 11.02 12.45

H) NET PROFIT 0.90 1.40 2.40 3.39 4.27

1.1% 1.6% 2.4% 3.1% 3.5%
I) Taxation - - - - -

J) PROFIT (After Tax) 0.90 1.40 2.40 3.39 4.27

PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V

SOURCES OF FUND

Own Contribution 0.95 -

Reserve & Surplus 0.90 1.40 2.40 3.39 4.27
Depriciation & Exp. W/off 0.63 0.54 0.46 0.40 0.34
Increase In Cash Credit 4.50
Increase In Term Loan 4.05 - - - -
Increase in Creditors 1.95 0.21 0.22 0.23 0.23

TOTAL : 12.98 2.15 3.08 4.01 4.85

APPLICATION OF FUND

Increase in Fixed Assets 4.50 - - - -

Increase in Stock 4.65 0.52 0.56 0.58 0.60
Increase in Debtors 2.61 0.39 0.34 0.35 0.37
Repayment of Term Loan 0.45 0.90 0.90 0.90 0.90
Taxation - - - - -
Drawings - 0.30 1.00 2.00 2.80
TOTAL : 12.21 2.11 2.79 3.83 4.67

Opening Cash & Bank Balance - 0.77 0.81 1.09 1.27

Add : Surplus 0.77 0.04 0.28 0.18 0.18

Closing Cash & Bank Balance 0.77 0.81 1.09 1.27 1.45
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS I II III IV V

Finished Goods
(10 Days requirement) 2.70 3.01 3.34 3.69 4.06
Raw Material
(10 Days requirement) 1.95 2.16 2.38 2.61 2.84

Closing Stock 4.65 5.17 5.72 6.30 6.90

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Amount Margin(10%) Net

Amount
Stock in Hand 4.65
Less:
Sundry Creditors 1.95
Paid Stock 2.70 0.27 2.43

Sundry Debtors 2.61 0.26 2.35

Working Capital Requirement 4.78

Margin 0.53

MPBF 4 78
4.78
Working Capital Demand 4.50
 REPAYMENT SCHEDULE OF TERM LOAN 11.0%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance
Ist Quarter - 4.05 4.05 0.11 - 4.05
Iind Quarter 4.05 - 4.05 0.11 - 4.05
IIIrd Quarter 4.05 - 4.05 0.11 0.23 3.83
Ivth Quarter 3.83 - 3.83 0.11 0.23 3.60
0.44 0.45
II Opening Balance
Ist Quarter 3.60 - 3.60 0.10 0.23 3.38
Iind Quarter 3.38 - 3.38 0.09 0.23 3.15
IIIrd Quarter 3.15 - 3.15 0.09 0.23 2.93
Ivth Quarter 2.93 2.93 0.08 0.23 2.70
0.36 0.90
III Opening Balance
Ist Quarter 2.70 - 2.70 0.07 0.23 2.48

Iind Quarter 2.48 - 2.48 0.07 0.23 2.25

IIIrd Quarter 2.25 - 2.25 0.06 0.23 2.03
Ivth Quarter 2.03 2.03 0.06 0.23 1.80
0.26 0.90
IV Opening Balance
Ist Quarter 1.80 - 1.80 0.05 0.23 1.58
Iind Quarter 1.58 - 1.58 0.04 0.23 1.35
IIIrd Quarter 1.35 - 1.35 0.04 0.23 1.13
Ivth Quarter 1.13 1.13 0.03 0.23 0.90
0.16 0.90
V Opening Balance
Ist Quarter 0.90 - 0.90 0.02 0.23 0.67
Iind Quarter 0 67
0.67 - 00.67
67 0 02
0.02 00.23
23 0 45
0.45
IIIrd Quarter 0.45 - 0.45 0.01 0.23 0.22
Ivth Quarter 0.22 0.22 0.01 0.23 - 0.00

0.06 0.90

Door to Door Period 60 Months

Moratorium Period 6 Months
Repayment Period 54 Months
CALCULATION OF D.S.C.R
PARTICULARS I II III IV V

CASH ACCRUALS 1.53 1.94 2.86 3.79 4.61

Interest on Term Loan 0.44 0.36 0.26 0.16 0.06

Total 1.96 2.30 3.12 3.95 4.67

REPAYMENT
Repayment of Term Loan 0.45 0.90 0.90 0.90 0.90
Interest on Term Loan 0.44 0.36 0.26 0.16 0.06

Total 0.89 1.26 1.16 1.06 0.96

DEBT SERVICE COVERAGE RATIO 2.21 1.82 2.69 3.72 4.86

AVERAGE D.S.C.R. 3.00

Assumptions:

1. Production Capacity of Curtains is 250 pcs per day. First year, Capacity has been
taken @ 60%.

2. Working shift of 10 hours per day has been considered.

3. Raw Material stock and Finished goods closing stock has been taken for 10 days.

4. Credit period to Sundry Debtors has been given for 10 days.

5. Credit period by the Sundry Creditors has been provided for 10 days.

6. Depreciation and Income tax has been taken as per the Income tax Act,

1961.

7. Interest on working Capital Loan and Term loan has been taken at 11%.

8. Salary and wages rates are taken as per the Current Market Scenario.

9. Power Consumption has been taken at 12 HP.

10. Selling Prices & Raw material costing has been increased by 3% & 2%
respectively in the subsequent years.
 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.