PROJECT REPORT

Of

CRICKET BAT

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Cricket Bat 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 : xxxxxxxxxxxxxxxxxxxxxx

District : xxxxxxx
Pin: xxxxxxx State: xxxxx
Mobile xxxxxxx

5 Product and By Product : CRICKET BAT

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

7 Cost of Project : Rs.19.82 Lakhs

8 Means of Finance
Term Loan Rs.10.58 Lakhs
Own Capital Rs.1.98 Lakhs
Working Capital Rs.7.25 Lakhs

9 Debt Service Coverage Ratio : 3.06

10 Pay Back Period : 5 Years

11 Project Implementation Period : 5-6 Months

12 Break Even Point : 30%

13 Employment : 19 Persons

14 Power Requirement : 24.00 HP

Kasmiri willow wood cleft,Handles,Handle

15 Major Raw materials
: thread,Grips,Sand paper sheet,Stickers, etc.

16 Estimated Annual Sales Turnover (Max Capacity) : 174.68 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Plant & Machinery 10.56
Furniture & Fixtures 1.20
Working Capital 8.06
Total 19.82

MEANS OF FINANCE
Particulars Amount
Own Contribution 1.98
Working Capital(Finance) 7.25
Term Loan 10.58
Total 19.82
 CRICKET BAT MAKING UNIT

Introduction:

Cricket is a very popular game in India as well as all the countries all around the world.
So, it is in demand in the countries of the world. Looking to the internal and increase in
export demand, there is a good scope for starting new manufacturing units in different
parts of the country The game of cricket is one of the most popular sports of common
wealth countries. The demand for Tennis Ball Bats and other ancillary items is increasing
day by day both in home and export markets. Raw materials required for Tennis ball
Tennis Ball Bats are Kashmiri Willow Clefts, cane, wood etc.

The Kashmir willow Tennis Ball Bats are sold to other Indian states like Punjab, Uttar
Pradesh, Delhi, Maharashtra, Madhya Pradesh, Gujarat, Chennai, Bangalore, Hyderabad
and Kolkata etc. Among the forward linkage members, there are marketing agents, direct
marketing and large industries. Most of the marketing is done through the marketing
agents. However, the unit holders along with their produce visit the Indian cities to sell
their product directly in the market. The willow clefts are supplied in lacs of numbers to
Jalandhar, Jammu and Meerut based Tennis Ball Bat-manufacturing units. It is worth
mentioning here that almost 80% of the world production of Tennis Ball Bats is done in
India for which the willow is supplied from Kashmir.
Uses & Market Potential:

A Bat is a specialized piece of equipment used by batsmen in the sport of cricket to hit
the ball, typically consisting of a cane handle attached to a flat-fronted willow-wood
blade. It may also be used by a batter who is making their ground to avoid a run out, if
they hold the bat and touch the ground with it. The global cricket equipment market will
grow staedily over the next four years and a post CAGR of more than 3% by 2021.

Product:
Cricket Bat

Raw Material:
 Kashmiri Willow wood cleft
 Handles
 Handle Thread
 Grips
 Sand Paper Sheet
 Stickers
 Varnish
 Thinner
 Liquid Hydrogen
 Polish
 Fevicol
 Skin Padding Lamination
 Polythene Packing
 Bags for Bats
Manufacturing Process:

Area:

The industrial setup requires space for Inventory, workshop or manufacturing area, space
for power supply utilities and polishing area. Also, some of the area of building is required
for office staff facilities, office furniture, etc. Thus, the approximate total area required
for complete industrial setup is 1200-1800Sqft.

Cost of Machines:

Machine Unit Rate Price

Band saw machine 2 65000 130000
Surface Planner 1 95000 95000
Sand Roller with dust collecting duct 1 95000 95000
Bat press machine 1 149000 149000

Chook machine 1 80000 80000

Scoop wood design machine 1 100000 100000

Spray gun 1 25000 25000

Cutter with motor 1 10000 10000

Wood working lathe with motor 1 130000 130000

 Router with motor and other accessories 1 17000 17000

Handle Lathe machine 1 40000 40000

Motor with bearing and driving belts 1 85000 85000

Other equipment’s - 100000 100000

Total Amount 1056000

Power Requirement- The estimated Power requirement is taken at 24 HP.

Manpower Requirement– Following manpower is required:

 Machine operator-4
 Skilled/unskilled worker-5
 Helper-7
 Manager cum Accountant-1
 Sales Personnel-2

FINANCIALS
PROJECTED BALANCE SHEET

PARTICULARS I II III IV V

SOURCES OF FUND
Capital Account
Opening Balance - 2.66 4.50 7.29 10.84
Add: Additions 1.98 - - - -
Add: Net Profit 3.68 5.14 6.38 8.05 9.60
Less: Drawings 3.00 3.30 3.60 4.50 6.00
Closing Balance 2.66 4.50 7.29 10.84 14.43
CC Limit 7.25 7.25 7.25 7.25 7.25
Term Loan 9.41 7.06 4.70 2.35 -
Sundry Creditors 2.52 3.00 3.50 4.01 4.55

TOTAL : 21.84 21.81 22.74 24.45 26.23

APPLICATION OF FUND

Fixed Assets ( Gross) 11.76 11.76 11.76 11.76 11.76

Gross Dep. 1.70 3.16 4.40 5.46 6.37
Net Fixed Assets 10.06 8.60 7.36 6.30 5.39

Current Assets
Sundry Debtors 4.15 5.21 6.14 7.12 8.15
Stock in Hand 6.43 7.66 8.95 10.27 11.64
Cash and Bank 1.21 0.34 0.29 0.76 1.05

TOTAL : 21.84 21.81 22.74 24.45 26.23

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

A) SALES
Gross Sale 88.92 111.67 131.56 152.56 174.68

Total (A) 88.92 111.67 131.56 152.56 174.68

B) COST OF SALES

Raw Material Consumed 50.40 59.98 69.91 80.23 90.92

Elecricity Expenses 1.61 1.88 2.15 2.42 2.69
Repair & Maintenance 2.22 2.79 3.29 3.81 4.37
Labour & Wages 22.18 27.05 32.47 37.66 42.93
Depreciation 1.70 1.45 1.24 1.06 0.91
Cost of Production 78.11 93.16 109.06 125.18 141.81

Add: Opening Stock /WIP - 3.91 4.66 5.45 6.26

Less: Closing Stock /WIP 3.91 4.66 5.45 6.26 7.09

Cost of Sales (B) 74.21 92.40 108.26 124.37 140.98

C) GROSS PROFIT (A-B) 14.71 19.27 23.29 28.19 33.70

16.54% 17.25% 17.71% 18.48% 19.29%
D) Bank Interest i) (Term Loan ) 1.15 0.94 0.68 0.42 0.16
ii) Interest On Working Capital 0.80 0.80 0.80 0.80 0.80
E) Salary to Staff 7.31 9.06 10.69 12.62 14.64
F) Selling & Adm Expenses Exp. 1.78 3.13 4.21 5.34 6.99

G) TOTAL (D+E+F) 11.03 13.92 16.38 19.18 22.58

H) NET PROFIT 3.68 5.34 6.91 9.01 11.12

4.1% 4.8% 5.3% 5.9% 6.4%
I) Taxation - 0.20 0.53 0.96 1.52

J) PROFIT (After Tax) 3.68 5.14 6.38 8.05 9.60

PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V

SOURCES OF FUND

Own Contribution 1.98 - - - -

Reserve & Surplus 3.68 5.34 6.91 9.01 11.12
Depriciation & Exp. W/off 1.70 1.45 1.24 1.06 0.91
Increase In Cash Credit 7.25 - - - -
Increase In Term Loan 10.58 - - - -
Increase in Creditors 2.52 0.48 0.50 0.52 0.53

TOTAL : 27.72 7.28 8.65 10.59 12.56

APPLICATION OF FUND

Increase in Fixed Assets 11.76 - - - -

Increase in Stock 6.43 1.23 1.29 1.32 1.37
Increase in Debtors 4.15 1.06 0.93 0.98 1.03
Repayment of Term Loan 1.18 2.35 2.35 2.35 2.35
Taxation - 0.20 0.53 0.96 1.52
Drawings 3.00 3.30 3.60 4.50 6.00
TOTAL : 26.51 8.15 8.70 10.12 12.27

Opening Cash & Bank Balance - 1.21 0.34 0.29 0.76

Add : Surplus 1.21 - 0.87 - 0.05 0.47 0.29

Closing Cash & Bank Balance 1.21 0.34 0.29 0.76 1.05
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS I II III IV V

Finished Goods
(15 Days requirement) 3.91 4.66 5.45 6.26 7.09
Raw Material
(15 Days requirement) 2.52 3.00 3.50 4.01 4.55

Closing Stock 6.43 7.66 8.95 10.27 11.64

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Amount Margin(10%) Net

Amount
Stock in Hand 6.43
Less:
Sundry Creditors 2.52
Paid Stock 3.91 0.39 3.52

Sundry Debtors 4.15 0.41 3.73

Working Capital Requirement 7.25

Margin 0.81

MPBF 7.25
Working Capital Demand 7.25
REPAYMENT SCHEDULE OF TERM LOAN 11.0%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance
Ist Quarter - 10.58 10.58 0.29 - 10.58
Iind Quarter 10.58 - 10.58 0.29 - 10.58
IIIrd Quarter 10.58 - 10.58 0.29 0.59 10.00
Ivth Quarter 10.00 - 10.00 0.27 0.59 9.41
1.15 1.18
II Opening Balance
Ist Quarter 9.41 - 9.41 0.26 0.59 8.82
Iind Quarter 8.82 - 8.82 0.24 0.59 8.23
IIIrd Quarter 8.23 - 8.23 0.23 0.59 7.64
Ivth Quarter 7.64 7.64 0.21 0.59 7.06
0.94 2.35
III Opening Balance
Ist Quarter 7.06 - 7.06 0.19 0.59 6.47
Iind Quarter 6.47 - 6.47 0.18 0.59 5.88
IIIrd Quarter 5.88 - 5.88 0.16 0.59 5.29
Ivth Quarter 5.29 5.29 0.15 0.59 4.70
0.68 2.35
IV Opening Balance
Ist Quarter 4.70 - 4.70 0.13 0.59 4.12
Iind Quarter 4.12 - 4.12 0.11 0.59 3.53
IIIrd Quarter 3.53 - 3.53 0.10 0.59 2.94
Ivth Quarter 2.94 2.94 0.08 0.59 2.35
0.42 2.35
V Opening Balance
Ist Quarter 2.35 - 2.35 0.06 0.59 1.76
Iind Quarter 1.76 - 1.76 0.05 0.59 1.18
IIIrd Quarter 1.18 - 1.18 0.03 0.59 0.59
Ivth Quarter 0.59 0.59 0.02 0.59 - 0.00
0.16 2.35

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 5.38 6.60 7.63 9.11 10.50

Interest on Term Loan 1.15 0.94 0.68 0.42 0.16

Total 6.53 7.53 8.31 9.53 10.67

REPAYMENT
Repayment of Term Loan 1.18 2.35 2.35 2.35 2.35
Interest on Term Loan 1.15 0.94 0.68 0.42 0.16

Total 2.32 3.29 3.03 2.77 2.51

DEBT SERVICE COVERAGE RATIO 2.81 2.29 2.74 3.44 4.24

AVERAGE D.S.C.R. 3.06

Assumptions:
1. Production Capacity of Cricket Bat Making unit is taken at 40 units per day.
First year, Capacity has been taken @ 30%.

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

3. Raw Material stock and Finished goods closing stock has been taken for 15
days.

4. Credit period to Sundry Debtors has been given for 14 days.

5. Credit period by the Sundry Creditors has been provided for 15 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 24 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.