leather full shoes

LEATHER FULL SHOESINTRODUCTIONA shoe is an item of footwear intended to protect and comfort the

human foot while doing various activities. Shoes are also used as an

item of decoration. The design of shoes has varied enormously through

time and from culture to culture, with appearance originally being tied

to function. Additionally fashion has often dictated many design

elements, such as whether shoes have very high heels or flat ones.

Contemporary footwear varies widely in style, complexity and cost.

Basic sandals may consist of only a thin sole and simple strap. High

fashion shoes may be made of very expensive materials in complex

construction and sell for thousands of dollars a pair. Other shoes are

for very specific purposes, such as boots specially designed for

mountaineering or skiing.

Leather Shoe is an item is an item of footwear evolved at first to

protect the human foot and later, additionally, as an item of decoration

in itself. The foot contains more bones than any other single part of

the body, and has evolved over hundreds of thousands of years in

relation to vastly varied terrain and climatic conditions. Together with

the proprioceptive system, it is what makes possible balance and

ambulation.

The majority of people did not wear shoes until recent years; shoes

were not worn by most of the world's population—largely because they

could not afford them. Only with the advent of mass production,

making available for the first time the cheap flip-flop-type sandal, for

example, has shoe-wearing become predominant.

Appearance and design have varied enormously through time, and

from culture to culture. They may, for example, have very high heels

or no heels at all. Contemporary footwear varies in style, complexity

and cost, from the most basic sandal, via high fashion shoes for

women sometimes costing thousands of dollars a pair, through to

complex boots specially designed for mountaineering or skiing. Shoes

have traditionally been made from leather, wood or canvas, but are

increasingly made from rubber, plastics, and other petrochemical-

derived materials.

MARKETLeather Industry – Overview, Export Performance and

Prospects

The Leather Industry holds a prominent place in the Indian

economy. This sector is known for its consistency in high export

earnings and it is among the top ten foreign exchange earners

for the country.

With an annual turnover of over US$ 7.5 billion, the export of

leather and leather products increased manifold over the past

decades and touched US$ 4.86 billion in 2011-12, recording a

cumulative annual growth rate of about 8.22% (5 years).

The Leather industry is bestowed with an affluence of raw

materials as India is endowed with 21% of world cattle & buffalo

and 11% of world goat & sheep population. Added to this are the

strengths of skilled manpower, innovative technology, increasing

industry compliance to international environmental standards,

and the dedicated support of the allied industries.

The leather industry is an employment intensive sector,

providing job to about 2.5 million people, mostly from the

weaker sections of the society. Women employment is

predominant in leather products sector with about 30% share.

Though India is the second largest producer of footwear and

leather garments in the world, India accounts for a share of

close to 3% in the global leather import trade of US$ 137.96

billion (2010)

The major production centers for leather and leather products in

India are located in Tamil Nadu - Chennai, Ambur, Ranipet,

Vaniyambadi, Vellore, Pernambut, Trichy, Dindigul and Erode ;

West Bengal – Kolkata ; Uttar Pradesh – Kanpur, Agra,

Noida, Saharanpur; Maharashtra – Mumbai ; Punjab –

Jallandhar ; Karnataka – Bangalore ; Andhra Pradesh -

Hyderabad ; Haryana - Ambala, Gurgaon, Panchkula, Karnal

and Faridabad; Delhi; Madhya Pradesh – Dewas ; Kerala –

Calicut and Ernakulam / Cochin

Strengths of Indian leather sector

Own raw material source – 2 billion sq ft of leather produced

annually

Some varieties of goat / calf / sheep skins command premium

position

Strong and eco-sustainable tanning base

Modernized manufacturing units

Trained / skilled manpower at competitive wage levels

World-class institutional support for Design & Product

Development, HRD and R & D.








billion (2010)












annually


position













billion (2010)












annually


position






Presence of support industries like leather chemicals and

finishing auxiliaries

Presence in major markets – Long Europe experience

Strategic location in the Asian landmass

Emerging strengths

Design development initiatives by institutions and individuals

Continuous modernization and technology upgradation

Economic size of manufacturing units

Constant human resource development programme to enhance

productivity

Increasing use of quality components

Shorter prototype development time

Delivery compliance

Growing domestic market for footwear and leather articles

Highlights of Leather Product Segments:

Tanning Sector – Annual production 2 billion Sq.ft. Accounts for

10% of world leather requirement. Indian colors continuously

being selected at the MODEUROPE Congress

Footwear Sector - Second largest footwear producer after

China. Annual Production 2065 million pairs. Huge domestic

retail market 1950 million pairs (95%) are sold in domestic

market. Footwear export accounts for 45.05% share in India’s

total leather & leather products export. The Footwear product

mix Gents 52%, Ladies 39% and Children 9%

Leather Garments Sector – Second largest producer with

annual production capacity of 16 million pieces. Third largest





Emerging strengths





productivity



Delivery compliance


















Emerging strengths





productivity



Delivery compliance














global exporter. Accounts for 10.43% share of India’s total

leather export

Leather Goods & Accessories Sector including Saddlery &

Harness - Fifth largest global exporter. Annual production

capacity - 63 million pieces of leather articles, 52 million pairs of

Industrial gloves & 12.50 million pieces of Harness & Saddlery

items. Accounts for 23.44% share of India’s total export

Product-wise Brands sourced from India:

Footwear Leather Garments Leather Goods /Accessories

Acme, Ann Taylor, Bally, Charter Armani, Zegna, Coach, Liz Claiborne,Club, Clarks, Coach, Colehann, Abercrombie & Fitch, Harrods, Yves St,Daniel Hector, Deichmann, DKNY, Marco Polo, Mango, Laurent, TommyDouble H, Ecco, Elefanten, Colehaan, Andre Hilfiger, Etienne Aigner,Etienneaigner, Florsheim, Gabor, Maarc, Guess Pierre Geoffrey Beene,Geoffrey Beene, Guess, Harrods, Cardin, Tommy Marks & Spencer,Hasley, Hush Puppies, Kenneth Hilfiger, Versace, Guess, Next, PierreCole, Liz Claiborne, Marks & DKNY, Liz Claiborne, Cardin, Prada, GAP,Spencer, Nautica, Next, Nike, Ann Taylor, Nautica, Levis, H & M, BritishCole Haan, Nunn Bush, Pierre Kenneth Cole, Home Stores, BananaCardin, Reebok, Rockport, Charter Club, Daniel Republic, Furla,Salamander, Stacy Adams, Hector American EagleTommy Hilfiger, Tony Lama, Outfitters, Bracciliani,Versace, Yves St. Laurent, Zara, Walmart etc.Johnston & Murphy, Docksteps,Timberland, Armani, Geox,Diesel, Ted Baker, Lacoste,Kickers, Calvin Klein, Sioux,Brasher, Zegna, Massimu Dutti,Buggatti, Lloyd, Christian Dier,Salamander, Camper, Bata,Espirit, French Connection,Legero, Mercedez, H & M andmany more famous brands


leather export










leather export









Besides, major brands are sourced from India, MNC brands aresold in India and Indian brands sold in India.

MNC Brands Soldin India

Indian Brands soldin India

Aldo, Bally, Clarks, Ecco,Florshiem, Ferragammo, HushPuppies, Lee cooper, Lloyd,Marks & Spencer, Nike, NineWest,New Balance, Reebok,Rockport, Stacy Adams,Tod’s, Geox , Louis Vuitton

Red Tape, Bata,Liberty, Khadims,Lakhani, Metro, Action

India’s export of leather and leather products for Five years

(Value in Million$)

2007-08

2008-09

2009-10

2010-11

2011-12

Finished Leather 807.19 673.37 627.95 841.13 1023.21Footwear 1489.35 1534.32 1507.59 1758.67 2077.27Leather Garments 345.34 426.17 428.62 425.04 572.54Leather Goods 800.46 873.44 757.02 855.78 1088.09Saddlery &Harness 106.18 92.15 83.39 87.92

107.60

Total 3548.51 3599.46 3404.57 3968.54 4868.71% Growth 15.99% 1.44% -5.41% 16.57% 22.68%Source: DGCI&S

% Share of Leather Products in Export Performance (2011-12)

% share of various countries in India’s Leather & LeatherProducts Exports (2011-12)

Major Markets:

The major markets for Indian Leather & Leather Products are Germany

with a share of 15.01%, UK 11.15%, Italy 10.85%, USA 9.02%, Hong

Kong 7.38%, France 6.25%, Spain 6.08%, Netherlands 4.07%,

Belgium 2.32%, China 2.54%, U.A.E.2.24%, Australia 1.39%, These

12 countries together accounts for nearly 78.30% of India’s total

leather& leather products export.

India’s Export of Leather & Leather Products to the European Union

touched US$ 3116.52 mn in 2011-12, accounting for a share of

64.01% in India’s total leather export trade of US$ 4868.71 mn.

(Value in million USD)

COUNTRY2007-08

2008-09

2009-10

2010-11

2011-12 % Share

Germany 493.34 508.45 491.28 575.38 730.77 15.01%Italy 490.77 461.56 398.56 455.76 528.39 10.85%UK 417.64 413.24 456.59 505.20 542.99 11.15%USA 311.21 359.22 296.37 348.13 439.27 9.02%Hong Kong 280.97 237.72 251.53 325.20 359.51 7.38%Spain 216.07 219.18 219.13 247.99 295.81 6.08%France 198.52 221.33 255.29 280.04 304.23 6.25%Netherlands 134.75 148.77 137.10 155.43 198.29 4.07%U.A.E. 76.23 85.79 69.06 74.27 109.11 2.24%Portugal 56.93 48.17 39.39 39.62 46.55 0.96%Belgium 55.32 54.77 65.39 80.89 113.08 2.32%China 55.46 49.96 48.58 75.48 123.78 2.54%Australia 50.44 55.76 53.92 51.81 67.79 1.39%Denmark 49.58 60.12 55.73 57.75 74.15 1.52%Sweden 38.99 38.03 36.07 31.36 44.29 0.91%Canada 36.92 35.29 27.66 29.32 40.01 0.82%

Korea Rep. 29.55 26.17 29.04 31.31 38.22 0.78%South Africa 27.90 22.45 24.60 32.14 41.17 0.85%Switzerland 25.79 26.07 27.10 25.02 33.52 0.69%Austria 25.68 27.22 28.01 27.01 38.43 0.79%

Greece 23.57 17.82 12.77 10.05 10.88 0.22%Saudi Arabia 15.96 19.28 21.01 22.14 40.89 0.84%Japan 15.95 20.24 17.19 21.74 33.18 0.68%Russia 15.77 12.01 6.68 19.99 33.05 0.68%Indonesia 15.31 13.45 10.08 20.15 25.16 0.52%Finland 14.39 15.52 9.96 14.57 22.14 0.45%Ireland 8.15 6.44 5.79 5.36 7.56 0.16%New Zealand 5.61 5.46 4.29 5.98 7.29 0.15%Others 361.74 389.97 306.42 399.45 519.20 10.68%Total 3548.51 3599.46 3404.57 3968.54 4868.71 100.00%

Region-wise Export of Leather & Leather Products 2010-11

Future Outlook:

The Government of India had identified the Leather Sector as a

Focus Sector in its Foreign Trade Policy 2004-09 in view of its

immense potential for export growth prospects and employment

generation. Accordingly, the Government is also implementing various

Special Focus Initiatives under the Foreign Trade Policy for the

growth of leather sector. With the implementation of various industrial

developmental programmes as well as export promotional activities;

and keeping in view the past performance, and industry’s inherent

strengths of skilled manpower, innovative technology, increasing

industry compliance to international environmental standards, and

dedicated support of the allied industries, the Indian leather industry

aims to augment the production, thereby enhance export, and

resultantly create additional employment opportunities for overall one

million people.

Hence, considering the current export trends and the previous growth

rates, the export target in respect of leather & leather products

is envisaged to touch US$ 9 billion mark by the financial year

2014

CURRENT MARKET FOR FULL SHOES

The current trends in footwear production, trade and consumption are

satisfactory. Almost 50 percent of the total domestic production is

exported. About 75 percent of the total export of footwear components

is from the Southern Region. Increased value of export of footwear

from Rs 2957.5 crores in 2005 to Rs. 11,000 crores by 2012 is

recorded. As footwear retailing in India is largely men oriented, there

exists a plethora of opportunities in the exclusive ladies' and kids'

footwear segment. Footwear exported from India are Dress Shoes,

Casuals, Moccasins, Sport Shoes, Horrachies, Sandals, Ballerinas,

Boots, Sandals and Chappals made of rubber, plastic, P.V.C. and other

materials.

INSTALLED CAPACITYProduct Installed

capacity

per hour

No of working

hours per day

Capacity

per day

Capacity per

annum

300 days per

annum

Leather

Shoes

100 8 800 240000

PLANT AND MACHINERYUPPER PLANT

1 Swim arm hydraulic clicking press 2 nos

2 Pneumatic stamping machine 2 nos

3 Stitching single needle 26 nos

4 Stitching double needle 10 nos

5 Stitching zig zag 2 nos

6 Binding machine 2 nos

7 Skiving machine 7 nos

8 Fusing machine 1 no

9 Eyeleting machine 1 no

10 Hammering machine 1 no

11 Embossing machine 1 no

12 Stamping machine 1 no

13 Toe puff attaching machine 1 no

14 Elgi compressor 7.5 HP 1 no

FULL SHOE PLANT FOR BOTTOM FINISHING

15 Pulling Over and Cement Lasting M/C 1

16 Tack Heel seat lasting M/c 1

17 Sole Embossing machine 1

18 Pounding Machine 1

19 Upper Forming M/c 1

20 Twin Sole Attaching M/c M: 756 1

21 Out Sole Stitching M/c 1

22 Heel Breasting M/c 1

23 Sole Levelling M/c 1

24 Crimping M/c 1

25 Band knife Splitting Machine 1

26 Twin Sole Attaching M/c M: AS1800K6 2

27 Oil dynamic clicking press with turning arm 20

tons 8

28 Travelling Head Clicking M/C M: G888 1

29 Heat Setting Plant CS 200 1

30 Ironing And Conditioning Machine Turbo P 3

31 Boot Leg Ironing Machine SG2 1

32 Reactivating Plant for Shoe and Soles Sco 1

33 Paste Drying Unit Chillier 1

34 Humidifier for Upper Mod UPB 1

35 Fore Part Conditioning Machinery Mod UE2 1

36 Counter Moulding Machine Alfa 684CF 2HP 1

37 Heel Nailing Machine PTP 3000 Basic 1

38 Tank Mounted Screw Air 1

39 Make Refrigerated Air Dryer 1

40 Pre Filter 1

41 Fine Filter 1

42 Carbon Filter 1

43 82.5 KVA DG Genset 1

44 160 KVA DG Genset 1

45 Conveyor 1

The total value of machinery is estimated at Rs.315.00 lakhs including

electricals.

MANUFACTURING PROCESSThe manufacturing of full shoes involves the following sequence of

operations.

Designing and pattern cutting: As per the selected designs, the

patterns are prepared, checked for accuracy, and then master patterns

are developed. Then these patterns are graded into different sizes and

dies are prepared.

Clicking: The upper, lining and stock components are cut from suitable

materials by the help of dies with the clicking press. While clicking, it is

essential to consider the importance of the components and the

corresponding portion of leather, directional properties of components

and that of leather portion, degree of defects, and the best possible

inter lock to have minimum wastage. The components are to be

necessarily marked with sizes and sides are kept separately to avoid

the confusion.

Closing: The cut components are checked to sizes and defects, skived

to the edges, folded and other edge treatments are done as per

specification. These are then assembled together initially with adhesive

and finally with stitching. The eyelets are fixed, the upper is checked

and then sent for next operation.

Bottom components preparation: Bottom components such as the

insole, toe – puff and stiffeners are cut from suitable materials and

skived as per specification. The PVC sole is cleaned with the solvent

like Methyle – Ethyle – Ketone (MEK) and the TPR sole is cleaned and

applied with chemical primer (Halogen) and dried.

Construction and shoe making: The toe – puff, stiffeners are inserted

between upper and lining at the toe and back part. The insole is fixed

on the last and the upper is mounted (Lasting) onto it by pulling the

toe part, back part and finally the side portion. The edges are

hammered for smooth feather edge. The bottom filling is done into the

cavity formed due to lasting. The surface is then scoured and

roughened to get levelled but rough surface is then cleaned with

solvent like MEK and dried. Both the sole and lasted upper surface are

then applied polyurethane adhesive and allowed to dry completely.

The dried surfaces are then reactivated to gain adhesion properties

and then the sole is fitted on the lasted upper accurately and pressed

under sole attachment machine for strong and permanent bond. In

this condition the shoe is kept for few hours for a permanent shape.

Finishing: The upper and sole is then cleaned and finished with the

wax and other finishing chemicals. The shoe is then de – lasted,

cleaned from inside, inserted with stamped sock lining, the laces are

attached, inspected and packed for dispatch.

QUALITY CONTROL AND STANDARDSThe quality of shoe has to be maintained as per buyer’s specification.

However, the main criteria for quality control are selection of suitable

materials (Especially the leather with required thickness, shade,

strength and softness) cutting components form suitable portions of

leather, assembling, regular stitching with suitable thread with

specified stitch length and finishing, lasting, alignment, sole

attachment, finishing and packing.

RAW MATERIALSThe following are the raw materials required for full shoe.

Calculation

Materials

of Raw

Unit Nrm Qty

Rate-

Rs Value-Rs

Leather 1 Sheep Nappa sft 3 3 46.8 140

Lining 1 1/2 Sheep + Socks sft 2.25 2 38.5 87

Lining 2 D.Khaki sft 0.7 1 4.65 3

Counter

stiffeners 1.4 Mm Solvent pairs 1 1 5.75 6

Foam 6mm 95d - Full sft 1.55 2 23 36

heel Grip H / G - Nr Sft 0 0 16 0

Reinforcing

cloth T 814 Sft 2.4 2 3.8 9

Sock cushion 3 Mm sft 0.65 1 4.75 3

Toe cap pairs 0 0

Sub-Material Rs/pair 1 1 15 15

Bottom

1002 -

Insole HALF pairs 1 1 11 11

Box

Packaging

Laces

Sole

75CM

LACE

1002 -

34389 TPR

Other Packing

Materials Rs/pair 1 30.75 31

8 8

20 20

481

9.62

490.62

The main raw material for the shoe making is the finished leather.

These are available from the reputed tanneries located in Ambur and

Ranipet.

PACKING MATERIALS

The packing materials consist of the following.

pairs 1 1 3.5 4

pairs 1 1 107.5 108

Carriage Inwards

Bottoming

Rs/pair

Rs/pair

1

1

1

1

Add:wastages

Total material

pair

2%

cost per

Production

'(including

10%)

No of

pairs 240000

wastage

Material cost per pair Rs.490.62

Total RM

annum

cost per

Rs.1,177

The packing material cost per pair is estimated at Rs. 25.00 per pair.

LOCATION LAND AND BUILDING

Built up area-Sq.ft 20000

Rent p.m.-Rs 12 per sq.ft 240000

Advance-10 months. Rs 2400000

UTILITIES

Three phase- 240HP KW 179.04

Power charges Rs. lakhs p.a 26.85

Water-For process-Litres per Nil

Tissue paper

Price tag

Rapping paper

Bar code

Carton box

Tape

Jute

Outer carton box

Tape

Jute

Outer Carton Tai

Lock

Gel

day

For human consumption-

litres/day

5000

MANPOWER

Calculation of Labour

CategoryNos. Monthly Total onthly

Salary Salary

Production Manager 1 18000 18000Line In charge 3 12000 36000QC Inspector 1 12000 12000

Cutting In charge 2 12000 24000Leather Assorter 1 9000 9000Store In charge 2 8000 16000Accountant 2 8000 16000Mechanic 1 8000 8000Checking 8 7000 56000Stitcher 38 7000 266000folder 6 6000 36000Attacher 10 5000 50000Helper 20 5000 100000Cutter 8 7000 56000Driver 1 7000 7000Total 104 710000Add Benefits 0.20 142000

852000Annually Rs.lakhs 102.24

Line Incharge 1 12000 12000

Asst: Line Incharge 1 10000 10000Store Incharge 3 8000 24000Sampling 1 8000 8000

Packing Incharge 3 8000 24000Mechanic 1 8000 8000Asst: Mechanic 1 7000 7000Skilled Operator 5 8000 40000

Semi Skilled Operator 40 7000 280000

Helper 20 5000 100000

513000

Add Benefits 102600

615600

73.87

176.11

EFFLUENT TREATMENT

Although shoe industry does not discharge any pollutants, the

following precautions are to be considered for a better environment.

The adhesives prescribed are mainly solvent based and are

inflammable and toxic in nature. It can cause problems, if inhaled.

Therefore, a solvent extraction system is required in adhesive

application area. Further the dust developed during scouring and

roughing or even during finishing are necessarily to be collected

through an exhaustion system attached to the concerned machine for

making the work place dust free.

SCHEDULE OF IMPLEMENTATIONIf the financing arrangements are finalized the project can be

implemented in six months time.

COST OF PRODUCTION AND PROFITABILITYA cost and profitability statement projected for the first 3 years of

operations is given in Annexure. The profitability is based on the

following assumptions.

Assumptions

Installed capacity 240000 pairs of Leather Shoes per annum

Capacity utilisation Year-1-60%

Year-2-70%

Year-3-80%

Selling price Rs.960.00 per Pair plus Duty Draw back-

4% in case of exports.

Raw materials As per the details given above

Packing materials As per details given above

Power Rs.26.85 lakh per annum at 100%

Wages and salaries Rs. 176.11 lakhs with increase 5% every

year.

Repairs and Maintenance Rs.3.60 lakhs per annum

Depreciation Written down value method -15 % on

machinery

Selling general and

administrative expenses

Rs.36.00 lakhs per annum

Interest on Term loan 14% per annum

Interest on working capital 14 % per annum

Income tax 34 % on profits

ADDRESSES OF MACHINERY AND EQUIPMENT

SUPPLIERS1.Harman Sales Pvt Ltd

Harman Chennai Clicking Dies

No. 51, Maddax Street,

2nd Floor, Verepy High Road,

Choolai, Chennai – 600112.

2.Shutan International

79 EVK Sampath Road

Chennai 600 007

3. Torielli India Pvt Ltd

10 Siri Fort Road-II floor, Ormes Road

Kilpauk,Chennai-600010

4.Itlaprogetti Asis Pvt Ltd

4, Ramawamy Street

T-Nagar Chennai -600017

5. EPM Italia machines Pvt Ltd

14/53, V.V. Koil Street,

Chinmaya Nagar, Stage-I,

Chennai - 600092

6.Fizya International

2/12 Palliappan Street

Periyar Nagar,Pallavaram

Chennai-600044

RAW MATERIALS SUPPLIERSAll major finished leather suppliers in Chennai and other leather

centres

1. M/s. Valliappa Leather Corporation

3/5 and 6, Narayana Chetty Street

Periamet,

Chennai 600 003.

2. M/s. T. Abdul Wahid and Co

26, Vepery High Road,

Chennai 600 003.

3. M/s. Tamil Nadu Leather Dev Corporation Ltd

857, Periyar SVR High Road,

Chennai 600 010.

4. M/s. Bharani Agencies

126, Thambu Chetty Street,

3rd Floor,

Chennai 600 001.

5. M/s. Popular Thread Factory

No.28, Kasi Chetty Street,

Chennai 600 097.

6. M/s. Skandia Sales and Services (P) Ltd

1-B, gen, Colling Road,

Choolai, Chennai 600 112.

FINANCIAL ASPECTS1. COST OF PROJECT

[Rs.lakhs]

Building-Rented-Advance 24.00Plant & Machinery 315.00Other Misc. assets 10.00Pre-Operative expenses 10.00Margin for WC 47.11

------

2. MEANS OF FINANCE406.11------

Capital 170.11Term Loan 236.00

------406.11

------

3. COST OF PRODUCTION & PROFITABILITYSTATEMENTS

Years 1 2 3

Installed Capacity (No.of pairs p.a.) 240000 240000 240000Utilisation 60% 70% 80%Production/Sales (No. of pairs p.a.) 144000 168000 192000

Selling Price Rs.960per pair ofupper

Shoe

Sales Value 1382.40 1612.80 1843.20Add: Duty draw back 4% 55.30 64.51 73.73Sales Value 1437.70 1677.31 1916.93

Raw Materials 1025.97 1196.97 1367.96Power 16.11 18.80 21.48Wages &Salaries 176.11 184.92 194.17Repairs & Maintenance 3.60 3.78 3.97Depreciation 49.73 42.33 36.02

Cost of Production 1271.53 1446.80 1623.60

Admin, & Generalexpenses 36.00 37.80 39.69Interest on Term Loan 33.04 28.91 20.65Interest on WorkingCapital 29.63 29.63 29.63

Total 1370.20 1543.14 1713.57

Profit BeforeTax 67.50 134.17 203.36Provision for 22.95 45.62 69.14

PROFITABILITY RATIOS BASED ON 80% UTILISATION

Profit after Tax 134.22

Sales 1916.93

Profit before Interest and Tax 253.64

Total Investment 617.76

Profit after Tax 134.22

Promoters Capital 170.11

taxProfit After Tax 44.55 88.55 134.22

Add: Depreciation 49.73 42.33 36.02Cash Accruals 94.29 130.88 170.24

4. WORKING CAPITAL:

Months Values % Margin BankConsumptions Amount Finance

Raw Materials 1.00 85.50 25% 21.38 64.12Finished goods 0.50 52.98 25% 13.25 39.73Debtors 1.00 119.81 10% 11.98 107.83Expenses 1.00 0.50 100% 0.50 0.00

258.79 47.11 211.68

Say --> Rs.211.65 lakhs

5.

7%

41%

79%

6. BREAK EVEN LEVEL

Fixed Cost(FC):

Wages &[Rs.lakhs]

Salaries 194.17

Repairs & maintenance 3.97Depreciation 36.02Admin. & Generalexpenses 39.69Interest on TL 20.65

294.50

Profit Before Tax (P) 203.36

ofinstalledcapacity

FC x 100 294.50 0.80

BEL = 497.86 47%FC +P

leather full shoes

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