Industrial and Engineering Consultancy ® (Govt.

Approved),
Room no. 312, Lone building K.P Road Anantnag

AND
TECHNO-ECONOMIC CUM PRE-INVESTMENT FEASIBILITY
REPORT

FOR ACTIVITY

TENT HOUSE AND SHAMIYANA

UNDER PMEGP

THROUGH DIC ANANTNAG

LOCATED AT

DEVA COLONY SHIRPORA, ANANTNAG

IN FAVOUR OF

MR. IMTIYAZ AHMAD SHEIKH

S/O GULL MOHD SHEIKH
R/O DEVA COLONY SHIRPORA, ANANTNAG, J&K

PROJECT CO-ORDINATOR

PREPARED BY:

SIGMA CONSULTANCY SERVICES®

(GOVT. APPROVED INDUSTRIAL
AND ENGINEERING CONSULTANCY)
ORDER NO:1015-DI&C-KMR

1
 Industrial and Engineering Consultancy ® (Govt. Approved),
Room no. 312, Lone building K.P Road Anantnag
PROJECT HIGHLIGHTS

1 NAME OF THE PROMOTER IMITIYAZ AHMAD SHEIKH

LOCATION OF UNIT DEVA COLONY SHERPORA ANANTNAG

LINE OF ACTIVITY TENT HOUSE AND SHAMIYANA

LAND OWNED

2 PARTICULARS AMOUNT IN LACS

LAND DEVELOPMENT .00

CIVIL WORKS .00

TOOLS AND EQUIPMENTS .00

MISCELLANEOUS FIXED ASSETS 1.94

PRELIMINARY AND PRE OPERATIVE EXPENSES .06

PROVISION FOR CONTINGENCIES .00

TOTAL COST OF FIXED ASSETS 2.00

MEANS OF FINANCE

TERM LOAN 2.00

PROMOTER CONTRIBUTION @5% .10

TERM LOAN FROM BANK @95% 1.90

WORKING CAPITAL REQUIREMENT 5.00

PROMOTER CONTRIBUTION @5% .25

WORKING CAPITAL LOAN @95% 4.75

TOTAL COST OF PROJECT 7.00

MANPOWER 6

POWER REQUIREMENT IN HP. 0

BEP IN %AGE 70.89

NET PROFIT RATE 14.00%

RATE OF RETURN 48.90%

2
 Industrial and Engineering Consultancy ® (Govt. Approved),
Room no. 312, Lone building K.P Road Anantnag
SCHEME AND OBJECTIVES

India has an aspiration to become $9 trillion economy by 2030, and to be the

world’s 3rd largest economy. This goal could be achieved only by increasing the
competitiveness in the market, attracting more investment and further creating
sufficient no of jobs for its young dynamic population. Recently India has
emerged as one of the fastest growing economy and in the report of world bank
ease of doing business it has ranked 130th rank among the countries due to its
strong vibrant economy. Further India’s labour force is expected to touch 160-
170 million by 2020 based on the rate of the population growth and this has
created an opportunity and challenge for the Indian economy. One of the road
maps towards this challenge is to develop the climate of entrepreneurship and
skill development. To evolve the business environment in India Govt of India has
taken a lot of steps including giving up incentives and subsidies under the
schemes like PMEGP to encourage the youth to opt for business as another career
option in contrast to other govt jobs. several schemes /assistances, benefits are
available to the entrepreneurs through different departments of Govt of India.

PMEGP is one of the flagship programs of the govt of India’s to generate

employment opportunities in rural and well as urban areas through setting up of
employment generation units/micro enterprises. Under this scheme the total
project cost in case of manufacturing sector and service sector are should not
exceed 25 lakhs and 10 lakhs respectively. The quantum of subsidy under this
programme ranges from 15-35% of the project cost. With regard to the eligibility,
the applicant needs to be unemployed having age not below than 18 years.

3
 Industrial and Engineering Consultancy ® (Govt. Approved),
Room no. 312, Lone building K.P Road Anantnag
BACKGROUND OF ENTREPRENEUR

The promoter is basically a new generation entrepreneur who intends to establish

the unit under PMEGP Scheme for the activity “TENT HOUSE & SHAMIYANA”.
Further the location of the unit proposed to be established at, J&K. It is to be
mentioned that the above said entrepreneur has sufficient resources to fund for
contribution/margin money for the term loan and working capital on its own.
Moreover, the promoter has got strong aptitude and calibre to manage the unit
effectively and efficiently. The brief bio-data of the entrepreneur is as under: -

S.NO
PARTICULARS

1 NAME IMITIYAZ AHMAD SHEIKH

2 SON/OF GULL MOHD SHEIKH

3 RESIDENCE DEVA COLONY SHERPORA ANANTNAG

4 MARITAL STATUS MARRIED

5 NATIONALITY Indian

7 CONTACT NUMBER 7889491995

8 PRESENT STATUS UNEMPLOYED

9 BANK LIABILITIES NO

10 LINE OF ACTIVITY TENT HOUSE AND SHAMIYANA

11 EXPERIENCE YES

12 PROPOSED AREA OF LAND OWNED

13 LOCATION OF UNIT DEVA COLONY SHERPORA ANANTNAG

4
 Industrial and Engineering Consultancy ® (Govt. Approved),
Room no. 312, Lone building K.P Road Anantnag

BACKGROUND OF PROJECT

The entrepreneur namely IMTIYAZ AHMAD SHEIKH S/O GULL MOHD SHEIKH
R/O DEVA COLONY SHERPORA ANANTNAG KMR has applied under PMEGP
SCHEME through DIC ANANTNAG for year 2019-20 and further setting of unit

within activity of “TENT HOUSE & SHAMIYANA”. In light of above the

entrepreneur has requested for the preparation Detailed Project Report, and same
has been prepared as per the parameters and norms of Scheme. The proposed
location of the unit is DEVA COLONY SHIRPORA ANANTNAG, J&K. Further it is to
mention that the promoter has OWNED Accommodation falling under rural area
for housing the fixed assets and that the proposed location has all infrastructural
facilities i.e. water supply power supply, road connectivity etc. The unit shall be
operating for 300 working days in a year with 8 working hours a day on single
shift basis. The skilled/unskilled workers shall be engaged locally with an overall
employment of 6 persons.

5
 Industrial and Engineering Consultancy ® (Govt. Approved),
Room no. 312, Lone building K.P Road Anantnag
INTRODUCTION
A tent is a shelter consisting of sheets of fabric or other material draped over,
attached to a frame of poles or attached to a supporting rope. While smaller tents
may be free-standing or attached to the ground, large tents are usually anchored
using guy ropes tied to stakes or tent pegs. First used as portable homes
by nomadic peoples, tents are now more often used for recreational camping and
temporary shelters.

Tents range in size from "bivouac" structures, just big enough for one person to
sleep in, up to huge circus tents capable of seating thousands of people. The bulk
of this article is concerned with tents used for recreational camping which have
sleeping space for one to ten people. Larger tents are discussed in a separate
section below. Tents for recreational camping fall into two categories. Tents
intended to be carried by backpackers are the smallest and lightest type. Small
tents may be sufficiently light that they can be carried for long distances on
a touring bicycle, a boat, or when backpacking.

The second type are larger, heavier tents which are usually carried in a car or
other vehicle. Depending on tent size and the experience of the person or people
involved, such tents can usually be assembled (pitched) in between 5 and 25
minutes; disassembly (striking) takes a similar length of time. Some very
specialised tents have spring-loaded poles and can be 'pitched' in seconds, but
take somewhat longer to strike.

Tents are often used in humanitarian emergencies, such

as war, earthquakes and fire. The primary choice of tents in humanitarian
emergencies are canvas tents, because a cotton canvas tent allows functional
breathability while serving the purpose of temporary shelter. Tents distributed by
organisations such as UNHCR are made by various manufacturers, depending on
the region where the tents are deployed, as well as depending on the purpose.

6
 Industrial and Engineering Consultancy ® (Govt. Approved),
Room no. 312, Lone building K.P Road Anantnag
At times, however, these temporary shelters become a permanent or semi-
permanent home, especially for displaced people living in refugee
camps or shanty towns who can't return to their former home and for whom no
replacement homes are made available.

MARKET AND DEMAND

Keeping in view the present view of the marriage function being carried on going
on in and around Rajouri, the demand for tent house can’t be ignored. With the
increase in the size of population resulting in the increase in functions being
carried on hence increase the demand for tent house. Moreover, other government
and development agencies also carries on the function are also the big consumers
of the tent house requirements. The project has good demand in the market
particularly in major centres of tribal areas. It is also observed that services of
tent house have good potential in important centres of tribal districts. Keeping in
view the aforesaid, the unit is not expected to face any difficulty in marketing as
envisaged in the project report provided it maintains the quality and competitive
price.

LAND AND BUILDING

The promoter namely IMTIYAZ AHMAD SHEIKH S/O GULL MOHD SHEIKH R/O DEVA
COLONY SHERPORA ANANTNAG Kmr has arranged land and building on rent basis
at DEVA COLONY SHERPORA ANANTNAG Kmr for setting up the proposed unit.
Further the civil works cost involved will be zero as the building for housing the
plant and machinery and other units of the proposed activity is already
constructed. Also, the proposed location for the unit has all the infrastructural
facilities viz power supply, water supply, road connectivity etc for the unit to
become functional and run smoothly.

7
 Industrial and Engineering Consultancy ® (Govt. Approved),
Room no. 312, Lone building K.P Road Anantnag

MISC. FIXED ASSETS

Fixed assets and machinery which does not get involved in the direct
manufacturing process may be referred as the miscellaneous fixed assets. These
include the items of furniture office, machinery, equipment’s, tools, vehicles, D.G
set, transformers, boilers, piping system, laboratory equipment, workshop
equipment, effluent treatment plant, firefighting equipment’s etc.

S.NO
PARTICULARS QUANTITY RATE AMOUNT(LACS)

SHAMINAYAS PRE-FABRICATED WITH WATER PROOF COVERING

1 1 100000 1.00
OF DIFFERENT SIZES AND DESIGNS

2 PRE FABRICATED STEEL STRUCTURES SHED 2 10000 .20

3 KEROSENE GEN. SET 2800 KVA 1 30000 .30

4 WATER PROOF TARPAULINS 30" X 30" 1 3000 .03

5 FURNITURE AND FIXTURES LS .10 .10

POWER DISTRIBUTION NETWORK ,PVC WIRES, LIGHTING

6 1 .15 .15
ARRANGEMENTS, DECORATATION LIGHTS ETC..

7 WATER TANK CAPACITY 500 LTRS 3 .04 .12

8 OTHER MISC. ITEMS CJ .04 .04

TOTAL AMOUNT 1.94

8
 Industrial and Engineering Consultancy ® (Govt. Approved),
Room no. 312, Lone building K.P Road Anantnag
PRELIMINARY AND PRE-OPERATIVE EXPENSES

PRELIMINARY EXPENSES: - These are the type expenses which are incurred at

preliminary stage i.e. for identifying the project, conducting the market survey,
preparation of feasibility report, printing and posting expenses, listening fees,
stamp duty, fee to the managers and registrars if any.

PREOPERATIVE EXPENSES: - Preoperative expenses are those expenses incurred

by a unit before commencement of commercial operations, or before starting to

earn income. Some expenses of this nature are establishment expenses, rates,
taxes, travelling expenses, insurance charges, mortgage expenses, start-up
expenses, miscellaneous expenses, and commitment charges on borrowing.
Financial institutions allow 20-25% expenses delay in project implementation

S.NO
PARTICULARS AMOUNT( LACS)

A PROPOSED PRELIMINARY EXPENSES

REGISTRATION FEE, POLLUTION FEE, ELECTRICAL FEE, MUNICIPAL FEE, AND

1 .02
VARIOUS OTHER NOC, S WITH VARIOUS DEPARTMENTS IF ANY

PROJECT REPORT PREPARATION FEE, BLUE PRINTS, SURVEY, QUOTATIONS, FOR

2 .01
MACHINERY ETC.

B PROPOSED PREOPERATIVE EXPENSES

1 STAMP DUTY, LEGAL DOCUMENTATION, SECURITY DEPOSITS AND START UP .02

PRINTING AND STATIONERY, TRAVELLING AND CONVEYANCE EXPENSES,

2 .01
C COMMUNICATION EXPENSES ETC

TOTAL AMOUNT .06

9
 Industrial and Engineering Consultancy ® (Govt. Approved),
Room no. 312, Lone building K.P Road Anantnag
COST OF FIXED ASSETS

S.NO PARTICULARS AMOUNT IN LACS

1 LAND DEVELOPMENT .00

2 CIVIL WORKS .00

3 PLANT AND MACHINERY .00

4 MISC. FIXED ASSETS 1.94

5 PRELIMINARY AND PREOPERATIVE EXPENSES .06

6 TOTAL COST OF FIXED ASSETS 2.00

7 PROVISION FOR CONTINGENCIES .00

TOTAL COST OF FIXED ASSETS 2.00

SALES/PRODUCTION PER ANNUM

S.NO PARTICULARS UNIT QUANTITY AVG. RATE AMOUNT (LACS)

INCOME FROM RENTING OUT THE TENTS,

1 SHAMINIYAS ALONG WITH FURNITURE AND NO,S 125 18000 22.50
SHED.

INCOME FROM LENDING OUT BEDDING

2 NO,S 120 1500 1.80
QUILTS, MATRESSES, ETC

TOTAL AMOUNT 24.30

10
 Industrial and Engineering Consultancy ® (Govt. Approved),
Room no. 312, Lone building K.P Road Anantnag
DETAILS OF SALARY AND WAGES PER ANNUM

S NO. SALARY PER ANNUM

PARTICULARS NO. SALARY/MONTH
(LACS)

1 MANAGER 1 15000 180000

2 SKILLED WORKER 2 10000 240000

3 SEMI SKILLED WORKER 3 8000 288000

DAILY WAGERS
4 9 700 945000
(CONTRACTUAL)

GRAND TOTAL 6 33000 1653000

BENEFITS AND FRINGES@ 1.5% 24795

TOTAL WAGES 1678000

S.NO
PARTICULARS AMOUNT

1 RENT 0

2 POSTAGE AND STATIONERY 10000

3 WATER AND ELECTRICITY EXPENSES 15000

4 TELEPHONE 5000

5 FUEL (KEROSENE) 110000

5 CARRIAGE 100000

6 INSURANCE 35000

7 MISC. EXPENSES 47000

TOTAL AMOUNT 322000

11
 Industrial and Engineering Consultancy ® (Govt. Approved),
Room no. 312, Lone building K.P Road Anantnag

WORKING CAPITAL REQUIREMENT

S.NO PARTICULARS AMOUNT IN LACS

1 RAW MATERIAL 0

2 SALARY AND WAGES 1678000

3 OTHER EXPENSES 322000

TOTAL 2000000

WORKING CAPITAL REQUIRED FOR 1 CYCLE OF 3 MONTHS 500000

PROJECT COST SUMMARY

S
PARTICULARS AMOUNT(LACS)
NO.

1 LAND AND SITE DEVELOPMENT OWNED

2 CIVIL WORKS .00

3 PLANT AND MACHINERY .00

4 MISC. FIXED ASSETS 1.94

PRELIMINARY AND PREOPERATIVE

5 .06
EXPENSES

6 PROVISION FOR CONTINGENCY .00

TOTAL FIXED ASSETS 2.00

1 WORKING CAPITAL REQUIREMENT FOR 1 CYCLE 5.00

TOTAL COST OF PROJECT 7.00

12
 Industrial and Engineering Consultancy ® (Govt. Approved),
Room no. 312, Lone building K.P Road Anantnag
MEANS OF FINANCE

S.NO PARTICULARS AMOUNT IN LACS

1 BENEFICIARY CONTRIBUTION FOR FIXED ASSETS% .10

2 BENEFICIARY CONTRIBUTION FOR WORKING CAPITAL @5% .25

TOTAL BENEFICIARY CONTRIBUTION .35

LOAN FROM BANK 6.65

DETAILS OF LOAN

S.NO. PARTICULARS AMOUNT IN LACS

1 TERM LOAN 1.90

2 WORKING CAPITAL 4.75

3 TOTAL LOAN 6.65

4 SUBSIDY ON TERM LOAN @35% .50

5 SUBSIDY ON WORKING CAPITAL @35% 1.25

6 TOTAL SUBSIDY 1.75

7 TOTAL BENEFICIARY CONTRIBUTION .35

TOTAL PROJECT COST 7.00

13
 Industrial and Engineering Consultancy ® (Govt. Approved),
Room no. 312, Lone building K.P Road Anantnag
TERM LOAN REPAYMENT SCHEDULE

S NO. PARTICULARS AMOUNT (LACS)

1 CAPITAL EXPENDITURE 1.50

2 PROMOTERS CONTRIBUTION(@5%) .10

3 TERM LOAN( 95% OF CE) 1.40

4 REPAYMENT SCHEDULE 5

5 RATE OF INTEREST 11.00

6 LOAN EMI ₹ 3,043.94

7 TOTAL INTEREST PAYABLE .43

8 TOTAL PAYMENT ( PRINCIPAL+INTREST) 1.83

BREAK UP OF TOTAL PAYMENT

PRINCIPAL INTEREST PAYABLE 1.40

TOTAL INTEREST .43

YEAR TOTAL OPENING CLOSING

PRINCIPAL INTEREST
PAYMENT BALANCE BALANCE

A B (A+B)

2019 .22 .14 .37 1.40 1.18

2020 .25 .12 .37 1.18 .93

2021 .28 .09 .37 .93 .65

2022 .31 .06 .37 .65 .34

2023 .34 .02 .37 .34 .00

14
 Industrial and Engineering Consultancy ® (Govt. Approved),
Room no. 312, Lone building K.P Road Anantnag
TOTAL CAPITAL INVESTMENT

S.NO PARTICULARS AMOUNT IN LACS

1 LAND DEVELOPMENT .00

2 CIVIL WORKS(RENOVATION) .00

3 TOOLS AND EQUIPMENTS .00

4 MISC. FIXED ASSETS 1.94

5 PRELIMINARY AND PRE-OPERATIVE EXPENSES .06

TOTAL CAPITAL INVESTMENT 2.00

6 WORKING CAPITAL REQUIRED FOR CYCLE OF 3 MONTHS 5.00

TOTAL COST OF PROJECT 7.00

COST OF PRODUCTION PER ANNUM

S.NO. PARTICULARS AMOUNT IN LACS

1 RAW MATERIAL PER YEAR .00

2 SALARY AND WAGES 16.78

3 OTHER EXPENSES 3.22

4 DEPRECIATION ON TOOLS AND EQUIPMENTS @10% .00

5 DEPRECIATION ON MISC. FIXED ASSETS @10% .19

6 DEPRECIATION ON CIVIL WORKS @6% .00

7 RENT PER ANNUM .00

8 INTEREST ON TERM LOAN @11% .14

9 INTEREST ON WORKING CAPITAL @11% .55

TOTAL COST OF PRODUCTION 20.88

15
 Industrial and Engineering Consultancy ® (Govt. Approved),
Room no. 312, Lone building K.P Road Anantnag
PROFITABILITY PER ANNUM

1 SALES 24.30

2 COST OF PRODUCTION 20.88

PROFIT PER ANNUM 3.42

3 NET PROFIT RATE 14.00%

4 RATE OF RETURN 48.90%

BREAK EVEN ANALYSIS

S. NO. PARTICULARS AMOUNT IN LACS

1 SALARY 40% 6.71

2 OTHER EXPENSES 1.29

3 DEPRECIATION ON TOOLS AND EQUIPMENTS @10% .00

4 DEPRECIATION ON MISC. FIXED ASSETS @10% .19

5 DEPRECIATION ON CIVIL WORKS @6% .00

6 RENT .00

7 INTEREST ON BANK LOAN@12% .14

TOTAL FIXED COST 8.33

BEP 70.89

16
 Industrial and Engineering Consultancy ® (Govt. Approved),
Room no. 312, Lone building K.P Road Anantnag

17