PROJECT REPORT

Of

FLEX PRINTING BUSINESS

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding FLEX PRINTING BUSINESS

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 : Flex Banners , Signage, Graphics and Advertisements

6 Name of the project / business activity proposed : Flex Printing

7 Cost of Project : Rs. 9.72 Lacs

8 Means of Finance
Term Loan Rs. 6.75 Lacs
KVIC Margin Money As per Project Eligibility
Own Capital Rs. 0.97 Lacs

9 Debt Service Coverage Ratio : 2.81

10 Pay Back Period : 5 Years Years

11 Project Implementation Period : 6 Months Months

12 Break Even Point :

13 Employment : 8 Persons

14 Power Requirement : -

15 Major Raw materials : Flex Roll, Paper, Special Papers for Graphics

16 Estimated Annual Sales Turnover : Rs. 25.65 Lacs

16 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lacs)

Particulars Amount
Land Rented/Owned
Plant & Machinery 7.75
Furniture & Fixtures 0.50
Working Capital Requirement 1.64
Total 9.89

MEANS OF FINANCE
Particulars Amount
Own Contribution 10% 0.99
Term Loan 7.43
Working capital 1.48
Total 9.89
General Special
KVIC Margin Monery Urban 15% 25%
KVIC Margin Monery Rural 25% 35%
 FLEX PRINTING

INTRODUCTION

Now-a-days, every activities of social and personal gathering increases the demand on
printing Medias, such as flex banners, signage, advertisement posters, invitations cards
etc… Such demands are met by a highly mechanized and computerized printing
enterprise. A graphic printing enterprise provides each and every required printing
medias to its users with a products and services ranging from low-end printing medias
for single use to high quality printing medias.

MARKET POTENTIAL

Flex and banner market in India is growing rapidly nowadays. Additionally, the item is
the most popular tool for any type of outdoor and as well indoor advertising. We can see
a growing demand in almost every city including Delhi, Mumbai, Bangalore, Hyderabad,
Chennai, and Kolkata.
Some of the most potential consumers are regional and national political parties. They
use banners in almost every programs and rally. Additionally, companies operating in the
several industries use banners for various purposes. Apart from the digital signage, flex
is the only instrument for outdoor media advertising. Furthermore, every school,
educational institutions, and sports organizations use flex banners in almost every event.
Additionally, there is good domestic market also.

Nowadays, people use flex banners in the events including birthday parties or social
gatherings. Therefore, the flex printing business has the potential market for the new
entrepreneurs.

BASIS AND ASSUMPTIONS

i) This report is worked out on the basis of 50% capacity utilization on Single Shift and
300 working days per annum.

ii) The machinery and equipment are of standard make.

iii) The cost of raw materials and other expenditure is approximate and based on current
market rates.

iv) The period for achieving envisaged capacity utilization is estimated to be one year
after commencement of production.

v) Interest rate for fixed and working capital has been calculated @ 11% per annum.

vi) Payback period would commence immediately and the repayment period is estimated
at 5 years.

IMPLEMENTATION SCHEDULE

1. The entrepreneur has to arrive at a decision in order to select this product. The guiding
factor in this regard would be the market potential, demand and supply gap and
availability of resources. It may take 2 to 3 weeks’ time.

2. After selecting the product, the entrepreneur has to get provisional registration from
DIC, so that he can apply for allotment of land, power, etc., for which about one-week time
is required.
3. In order to obtain financial assistance from the financial Institutions, like Commercial
Banks or State Financial Corporations, a detailed Project Report is required to be
prepared. On the basis of the report, financial institutions may take 8 to 12 weeks time
for sanctioning and disbursing the loan. Accordingly, orders for plant and machinery may
be finalized and placed. Simultaneously, order for purchase of raw materials is also to be
finalized and recruitment of key staff is to be done. This would require 3 to 4 weeks’ time.

Strength and opportunities of the Business

1. Presently there is no such kind of business established in the town.

2. The demand for flex banners, signage and printed graphics are highly increasing.

3. Today’s consumers often go for digitalized and mechanized printing medias over
traditional (hand-written) medias because they are comparatively cheaper, better and
more reliable.

4. There is always a room to up-grade in printing business.

Quality Control and Standards

As per Customers’ requirements.

Pollution Control

The manufacturing activity does not pose any pollution as such no special pollution
measures are required.
Energy Conservation

Wastage of energy should be minimised as much as possible so that the unit can
withstand competition with similar unit.
PROJECTED BALANCE SHEET

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

SOURCES OF FUND

Capital Account 0.99 0.99 0.99 0.99 0.99

Retained Profit 1.54 4.03 7.72 12.76 19.06
Term Loan 5.94 4.46 2.97 1.49 -
Cash Credit 1.48 1.48 1.48 1.48 1.48
Sundry Creditors 0.03 0.21 0.25 0.29 0.32

TOTAL : 9.98 11.17 13.41 17.00 21.85

APPLICATION OF FUND

Fixed Assets ( Gross) 8.25 8.25 8.25 8.25 8.25

Gross Dep. 1.19 2.22 3.11 3.86 4.50
Net Fixed Assets 7.06 6.03 5.14 4.39 3.75

Current Assets
Sundry Debtors 0.60 0.75 0.88 1.00 1.13
Stock in Hand 1.08 1.30 1.51 1.73 1.94
Cash and Bank 1.24 3.10 5.87 9.88 15.03

TOTAL : 9.98 11.17 13.41 17.00 21.85

- - - - -
PROJECTED CASH FLOW STATEMENT

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

SOURCES OF FUND

Share Capital 0.99 -

Reserve & Surplus 1.54 2.49 4.09 5.60 7.01
Depriciation & Exp. W/off 1.19 1.04 0.88 0.75 0.64
Increase in Cash Credit 1.48 - - - -
Increase In Term Loan 7.43 - - - -
Increase in Creditors 0.03 0.18 0.04 0.04 0.04

TOTAL : 12.65 3.71 5.01 6.39 7.68

APPLICATION OF FUND

Increase in Fixed Assets 8.25 - - - -

Increase in Stock 1.08 0.22 0.22 0.22 0.22
Increase in Debtors 0.60 0.15 0.13 0.13 0.13
Repayment of Term Loan 1.49 1.49 1.49 1.49 1.49
Taxation - - 0.41 0.56 0.70

TOTAL : 11.41 1.85 2.24 2.39 2.53

Opening Cash & Bank Balance - 1.24 3.10 5.87 9.88

Add : Surplus 1.24 1.86 2.78 4.00 5.16

Closing Cash & Bank Balance 1.24 3.10 5.87 9.88 15.03
PROJECTED PROFITABILITY STATEMENT

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

Capacity Ulisation %
A) SALES

Gross Sale(Flex Printing) 25.65 32.13 37.53 42.93 48.33

Total (A) 25.65 32.13 37.53 42.93 48.33

B) COST OF SALES

Raw Mateiral Consumed 10.26 12.85 15.01 17.17 19.33

Elecricity Expenses 1.28 1.61 1.88 2.15 2.42
Repair & Maintenance 0.26 0.64 0.75 0.86 0.97
Labour & Wages 5.28 5.81 6.39 7.03 7.73
Depreciation 1.19 1.04 0.88 0.75 0.64
Cost of Production 18.27 21.94 24.91 27.96 31.09

Add: Opening Stock /WIP - 1.08 1.30 1.51 1.73

Less: Closing Stock /WIP 1.08 1.30 1.51 1.73 1.94

Cost of Sales (B) 17.19 21.73 24.69 27.74 30.87

C) GROSS PROFIT (A-B) 8.46 10.40 12.84 15.19 17.46

33% 32% 34% 35% 36%
D) Bank Interest (Term Loan ) 0.76 0.59 0.43 0.27 0.10
Bank Interest ( C.C. Limit ) 0.16 0.16 0.16 0.16 0.16
E) Salary to Staff 2.16 2.33 2.52 2.72 2.94
F) Selling & Adm Expenses Exp. 3.85 4.82 5.63 6.44 7.25

TOTAL (D+E) 6.93 7.91 8.74 9.59 10.45

H) NET PROFIT 1.54 2.49 4.09 5.60 7.01

I) Taxation - - 0.41 0.56 0.70

J) PROFIT (After Tax) 1.54 2.49 3.69 5.04 6.31

K) DIVIDEND - - - - -

L) RETAINED PROFIT 1.54 2.49 3.69 5.04 6.31

COMPUTATION OF FLEX PRINTING SERVICES

Items to be Manufactured Flex Printing

Manufacturing Capacity Flex Printing 100.00 Nos Per Day

-

No. of Working Hour 10

No of Working Days per month 25

No. of Working Day per annum 300

Total Production per Annum Flex Printing 30,000.00 Nos per Annum
-
Year
Capacity Utilization

Flex Printing
IST YEAR 50% 15,000.00
IIND YEAR 60% 18,000.00
IIIRD YEAR 70% 21,000.00
IVTH YEAR 80% 24,000.00
VTH YEAR 90% 27,000.00

COMPUTATION OF SALE

Flex Printing
Particulars IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

Op Stock - 750.00 900.00 1,050.00 1,200.00

Production 15,000.00 18,000.00 21,000.00 24,000.00 27,000.00
15,000.00 18,750.00 21,900.00 25,050.00 28,200.00
Less : Closing Stock 750.00 900.00 1,050.00 1,200.00 1,350.00
Net Sale 14,250.00 17,850.00 20,850.00 23,850.00 26,850.00

Sale Price Per Nos 180.00 180.00 180.00 180.00 180.00

Sale (in Lacs) 25.65 32.13 37.53 42.93 48.33

COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

Consumables
(15 Days requirement) 1.08 1.30 1.51 1.73 1.94

Closing Stock 1.08 1.30 1.51 1.73 1.94

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Total Own Bank

Amount Margin Finance

Stock in Hand 1.08 10% 0.11 90% 0.97

Sundry Debtors 0.60 10% 0.07 90% 0.53

1.68 0.18 1.50

Sundry Creditors 0.03 10% 0.01 90% 0.02

1.64 0.16 1.48

WORKING CAPITAL (HYP) FRESH DEMAND 1.48

1.48
BREAK UP OF LABOUR

Particulars Wages No of Total

Per Month Employees Salary

Operator 10,000.00 2 20,000.00

Assistant 6,000.00 4 24,000.00

44,000.00

Annual Cost ( in lacs) 5.28

BREAK UP OF SALARY

Particulars Salary No of Total

Per Month Employees Salary
Accountant 10,000.00 1 10,000.00
Marketing Executive 8,000.00 1 8,000.00

Total Salary Per Month 18,000.00

Annual Cost ( in lacs) 2.16

 REPAYMENT SCH
COMPUTATION OF DEPRECIATION
Year
Description Land Plant & Furniture TOTAL IST YEAR
Machinery

Rate of Depreciation 15.00% 10.00%

Opening Balance Leased - - -
Addition - 7.75 0.50 8.25
- 7.75 0.50 8.25 IIND YEAR
Less : Depreciation - 1.16 0.03 1.19
WDV at end of Ist year - 6.59 0.48 7.06
Additions During The Year - - - -
- 6.59 0.48 7.06
Less : Depreciation - 0.99 0.05 1.04
WDV at end of IInd Year - 5.60 0.43 6.03 IIIRD YEAR
Additions During The Year - - - -
- 5.60 0.43 6.03
Less : Depreciation - 0.84 0.04 0.88
WDV at end of IIIrd year - 4.76 0.38 5.14
Additions During The Year - - - -
- 4.76 0.38 5.14 IVTH YEAR
Less : Depreciation - 0.71 0.04 0.75
WDV at end of IV year - 4.05 0.35 4.39
Additions During The Year - - - -
- 4.05 0.35 4.39
Less : Depreciation - 0.61 0.03 0.64
WDV at end of Vth year - 3.44 0.31 3.75 VTH YEAR
REPAYMENT SCHEDULE OF TERM LOAN 11%

Particulars Amount Addition Total Interest Repayment Cl Balance

Opening Balance
Ist Quarter 7.43 - 7.43 0.20 0.37 7.05
Iind Quarter 7.05 - 7.05 0.19 0.37 6.68
IIIrd Quarter 6.68 - 6.68 0.18 0.37 6.31
Ivth Quarter 6.31 - 6.31 0.17 0.37 5.94
0.76 1.49
Opening Balance
Ist Quarter 5.94 - 5.94 0.16 0.37 5.57
Iind Quarter 5.57 - 5.57 0.15 0.37 5.20
IIIrd Quarter 5.20 - 5.20 0.14 0.37 4.83
Ivth Quarter 4.83 4.83 0.13 0.37 4.46
0.59 1.49
Opening Balance
Ist Quarter 4.46 - 4.46 0.12 0.37 4.08
Iind Quarter 4.08 - 4.08 0.11 0.37 3.71
IIIrd Quarter 3.71 - 3.71 0.10 0.37 3.34
Ivth Quarter 3.34 3.34 0.09 0.37 2.97
0.43 1.49
Opening Balance
Ist Quarter 2.97 - 2.97 0.08 0.37 2.60
Iind Quarter 2.60 - 2.60 0.07 0.37 2.23
IIIrd Quarter 2.23 - 2.23 0.06 0.37 1.86
Ivth Quarter 1.86 1.86 0.05 0.37 1.49
0.27 1.49
Opening Balance
Ist Quarter 1.49 - 1.49 0.04 0.37 1.11
Iind Quarter 1.11 - 1.11 0.03 0.37 0.74
IIIrd Quarter 0.74 - 0.74 0.02 0.37 0.37
Ivth Quarter 0.37 0.37 0.01 0.37 0.00
0.10 1.49
CALCULATION OF D.S.C.R

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

CASH ACCRUALS 2.73 3.53 4.57 5.79 6.95

Interest on Term Loan 0.76 0.59 0.43 0.27 0.10

Total 3.48 4.12 5.00 6.06 7.05

REPAYMENT
Instalment of Term Loan 1.49 1.49 1.49 1.49 1.49
Interest on Term Loan 0.76 0.59 0.43 0.27 0.10

Total 2.24 2.08 1.91 1.75 1.59

DEBT SERVICE COVERAGE RATIO 1.55 1.98 2.61 3.46 4.44

AVERAGE D.S.C.R. 2.81

BREAK EVEN POINT ANALYSIS

Year I II III IV V

Net Sales & Other Income 25.65 32.13 37.53 42.93 48.33
Less : Op. WIP Goods - 1.08 1.30 1.51 1.73
Add : Cl. WIP Goods 1.08 1.30 1.51 1.73 1.94

Total Sales 26.73 32.35 37.75 43.15 48.55

Variable & Semi Variable Exp.

Raw Material & Tax 10.26 12.85 15.01 17.17 19.33

Electricity Exp/Coal Consumption at 85% 1.09 1.37 1.60 1.82 2.05
Wages & Salary at 60% 4.46 4.88 5.34 5.85 6.40
Repair & Maintenance 0.26 0.64 0.75 0.86 0.97
Selling & adminstrative Expenses 80% 3.08 3.86 4.50 5.15 5.80
Intt. On Working Capital Loan 0.16 0.16 0.16 0.16 0.16
Total Variable & Semi Variable Exp 19.31 23.76 27.37 31.02 34.72

Contribution 7.42 8.58 10.38 12.13 13.83

Fixed & Semi Fixed Expenses

Electricity Exp/Coal Consumption at 15% 0.19 0.24 0.28 0.32 0.36

Wages & Salary at 40% 2.98 3.26 3.56 3.90 4.27
Interest on Term Loan 0.76 0.59 0.43 0.27 0.10
Depreciation 1.19 1.04 0.88 0.75 0.64
Selling & adminstrative Expenses 20% 0.77 0.96 1.13 1.29 1.45
Total Fixed Expenses 5.88 6.09 6.28 6.53 6.82

Capacity Utilization 50% 60% 70% 80% 90%

OPERATING PROFIT 1.54 2.49 4.09 5.60 7.01
BREAK EVEN POINT 40% 43% 42% 43% 44%
BREAK EVEN SALES 21.19 22.95 22.85 23.22 23.95
 DISCLAIMER

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