PROJECT AT A GLANCE

NAME : ARIF

FATHER'S NAME : BABU

RESIDENTIAL ADDRESS : 209, ANSARI, MEERGANJ, BAREILLY

CONTACT NO. :

STATUS : PRIVATE

SIZE OF THE UNIT : SMALL SCALE

NAME OF THE UNIT : ZARI WORK

ADDRESS OF PROPOSED UNIT : 209, ANSARI, MEERGANJ, BAREILLY

NATURE : NEW

NO. OF WORKING DAYS/ANNUM : 300 DAYS

NO OF WORKING HOURS/DAY : 8 HOURS

NO OF EMPLOYEES : 10

ANNUAL TURNOVER
Ist 2343600.00
2nd 2754360.00
3rd 3029796.00
4th 3332776.00
5th 3666053.00

ANNUAL PROFIT
Ist 166029.00
2nd 209015.00
3rd 253928.00
4th 301214.00
5th 351326.00
COST OF THE PROJECT
Proposed
PLANT & MACHINERY 300000.00

WORKING CAPITAL 450000.00

750000.00
MEANS OF FINANCE
Proposed
PROMOTER'S CONTRIBUTION 37500.00

TERM LOAN 285000.00

CASH CREDIT 427500.00

750000.00
 COMPONENTS FOR PROJECTIONS OF PRODUCTIONS
& PROFITABILITY STATEMENTS

1) CAPACITY:

The Capicity of the Production is 8 sarees per day on 300 days working.Therefore
the annual production comes to 2400 sarees. The firm shall be engaged in the
prepration of suits and dress material also. However the Projections are based on
sarees .The 10 % increase is expected in subsequent years

2) RAW MATERIAL (AT 100% Capacity):

No of Sarees Per Unit Amount
a) Raw Material like Teeki, Katdana, Nakshi 2400.00 675.00 1620000.00
Resham,Moti,Thread,kasab,Chandla,
Adhesive etc.
TOTAL 1620000.00

3) OTHER CONSUMABLES

It has been assumed that the cost of stores and consumables will come to 3% Raw Material Used.
48600.00

TOTAL 48600.00
4) DIRECT LABOUR & WAGES
No Per Month Total
Skilled Labour 6 4500 324000.00
Unskilled Labour 4 3000 144000.00
468000.00 TOTAL 468000.00
A further 10 % increase is expected in subsequent years

5) POWER & FUEL

The estimated cost of electricity & Genset is expected to Rs. 5000/- per month and a further 10%
increase is expected every year.

TOTAL 60000.00

6) REPAIRS & MAINTENANCE

It is considered @ 2% on Plant & Machinery in the first year & there after 10% increase in subsequent
years

I st Year Rs. 6000.00

7) SELLING EXPS.

Selling & Administration Expenses has been considered @ 1 % on sales and further 10 % increase has
been estimated.
Sales % age Amount
I st Year 2343600.00 1.00% 23436.00
Rs. 23436.00

8) SALES REALISATION
No of Sarees Per Unit Amount
Sarees 2400.00 1050.00 2520000.00

9) COMPUTATAION OF CLOSING STOCK

I YAER II YEAR III YEAR IV YEAR V YEAR
Op Stock 0 176400.00 194040.00 213444.00 234788.00
Sales Real. 2520000.00 2772000.00 3049200.00 3354120.00 3689532.00
Cl. Stock 176400.00 194040.00 213444.00 234788.00 258267.00
Act. Sales 2343600.00 2754360.00 3029796.00 3332776.00 3666053.00

Debtors 164052.00 192805.00 212086.00 233294.00 256624.00

 LIST OF PLANT & MACHINERY AND FURNITURE PROPOSED TO BE PURCHASED

S.NO. NAME OF MACHINE VALUE

1 Wodden Frames (Adde)
2 Steel Frames (Adde)
3 Stain Remover Machines
4 Inverter Battry & Fans 300000.00
5 Tube Light & CFLs
6 Carpeting
7 Genset & Misc. Tools
TOTAL VALUE 300000.00
 PROFITABILITY ESTIMATES OF THE PROJECT

PARTICULARS I II III IV V

A Sales / Receipts Per Annum 2343600.00 2754360.00 3029796.00 3332776.00 3666053.00

2343600.00 2754360.00 3029796.00 3332776.00 3666053.00

B COST OF PRODUCTION

i) Raw Material Consumed 1620000.00 1782000.00 1960200.00 2156220.00 2371842.00

ii) Other Consumables 48600.00 53460.00 58806.00 64687.00 71156.00

iii) Salaries & Wages 468000.00 514800.00 566280.00 622908.00 685199.00

iv) Power & Fuel 60000.00 66000.00 72600.00 79860.00 87846.00

v) Repair & Maintenance 6000.00 6600.00 7260.00 7986.00 8785.00

vi) Depreciation 45000.00 38250.00 32513.00 27636.00 23490.00

vii) Add: Opening Stock of F. Goods 0.00 176400.00 194040.00 213444.00 234788.00

viii) Less: Closing Stock of F. Goods 176400.00 194040.00 213444.00 234788.00 258267.00

C Cost of Sales 2071200.00 2443470.00 2678255.00 2937953.00 3224839.00

D Gross Profit (A-C) 272400.00 310890.00 351541.00 394823.00 441214.00

E Selling & Administration Exp 23436.00 25780.00 28358.00 31194.00 34313.00

F Interest on Term Loan 31635.00 24795.00 17955.00 11115.00 4275.00

G Interest on Cash Credit 51300.00 51300.00 51300.00 51300.00 51300.00

NET PROFIT 166029.00 209015.00 253928.00 301214.00 351326.00

NET PROFIT% 7% 8% 8% 9% 10%
 PROJECTED BALANCE SHEET

ASSETS I II III IV V

Fixed Assets: 300000.00 255000.00 216750.00 184237.00 156601.00

Less: Depriciation 45000.00 38250.00 32513.00 27636.00 23490.00
Net Fixed Assets 255000.00 216750.00 184237.00 156601.00 133111.00

Other Assets 0.00 0.00 0.00 0.00 0.00

Sundry Debtors 164052.00 192805.00 212086.00 233294.00 256624.00

Stock in hand:
'-Raw material 151200.00 166320.00 182952.00 201247.00 221372.00
'- Consumables 8100.00 8910.00 9801.00 10781.00 11859.00
'- Finished Goods 176400.00 194040.00 213444.00 234788.00 258267.00

Cash & Bank Balance 67077.00 98799.00 151190.00 215786.80 270621.98

TOTAL 821829.00 877624.00 953710.00 1052497.80 1151854.98

LIABILITIES

Proprietor's Fund 37500.00 128529.00 237544.00 366472.00 517686.00

Add:- Net Profit 166029.00 209015.00 253928.00 301214.00 351326.00
Less:- Drawings 75000.00 100000.00 125000.00 150000.00 200000.00
128529.00 237544.00 366472.00 517686.00 669012.00

Sundry Creditors 37800.00 41580.00 45738.00 50311.80 55342.98

Cash Credit 427500.00 427500.00 427500.00 427500.00 427500.00

Bank Loan 228000.00 171000.00 114000.00 57000.00 0.00

TOTAL 821829.00 877624.00 953710.00 1052497.80 1151854.98

 COMPUTATION OF DEPRECAITION AS PER INCOME TAX ACT, 1961

I st Year
Particulars Rate of Dep Op. Balance Addition Deduction Total Depreciation WDV
PLANT & MACHINERY 15.00% 0.00 300000.00 0.00 300000.00 45000.00 255000.00
0.00 0.00 0.00 0.00 0.00
TOTAL 0.00 300000.00 0.00 300000.00 45000.00 255000.00

II nd Year
Particulars Rate of Dep Op. Balance Addition Deduction Total Depreciation WDV
PLANT & MACHINERY 15.00% 255000.00 0.00 0.00 255000.00 38250.00 216750.00
0.00 0.00 0.00 0.00 0.00 0.00
TOTAL 255000.00 0.00 0.00 255000.00 38250.00 216750.00

III rd Year
Particulars Rate of Dep Op. Balance Addition Deduction Total Depreciation WDV
PLANT & MACHINERY 15.00% 216750.00 0.00 0.00 216750.00 32513.00 184237.00
0.00 0.00 0.00 0.00 0.00 0.00
TOTAL 216750.00 0.00 0.00 216750.00 32513.00 184237.00

IV th Year
Particulars Rate of Dep Op. Balance Addition Deduction Total Depreciation WDV
PLANT & MACHINERY 15.00% 184237.00 0.00 0.00 184237.00 27636.00 156601.00
0.00 0.00 0.00 0.00 0.00 0.00
TOTAL 184237.00 0.00 0.00 184237.00 27636.00 156601.00

V th Year
Particulars Rate of Dep Op. Balance Addition Deduction Total Depreciation WDV
PLANT & MACHINERY 15.00% 156601.00 0.00 0.00 156601.00 23490.00 133111.00
0.00 0.00 0.00 0.00 0.00 0.00
TOTAL 156601.00 0.00 0.00 156601.00 23490.00 133111.00
 REPAYMENT AND INTEREST CALCULATION SCHEDULE

a) Term Loan 285000.00

Total 285000.00

Rate of Interest 12.00%

Instalments 20
Period Op. Balance Rep. of Principal Cl. Balance Interest

Ist Year
(i) 285000.00 14250.00 270750.00 8550.00
(ii) 270750.00 14250.00 256500.00 8122.50
(iii) 256500.00 14250.00 242250.00 7695.00
(iv) 242250.00 14250.00 228000.00 7267.50
57000.00 31635.00
IInd Year
(i) 228000.00 14250.00 213750.00 6840.00
(ii) 213750.00 14250.00 199500.00 6412.50
(iii) 199500.00 14250.00 185250.00 5985.00
(iv) 185250.00 14250.00 171000.00 5557.50
57000.00 24795.00
IIIrd Year
(i) 171000.00 14250.00 156750.00 5130.00
(ii) 156750.00 14250.00 142500.00 4702.50
(iii) 142500.00 14250.00 128250.00 4275.00
(iv) 128250.00 14250.00 114000.00 3847.50
57000.00 17955.00
IVth Year
(i) 114000.00 14250.00 99750.00 3420.00
(ii) 99750.00 14250.00 85500.00 2992.50
(iii) 85500.00 14250.00 71250.00 2565.00
(iv) 71250.00 14250.00 57000.00 2137.50
57000.00 11115.00
Vth Year
(i) 57000.00 14250.00 42750.00 1710.00
(ii) 42750.00 14250.00 28500.00 1282.50
(iii) 28500.00 14250.00 14250.00 855.00
(iv) 14250.00 14250.00 0.00 427.50
57000.00 4275.00
b) Cash Credit 427500.00
Rate of Interest 12.00%
Interest 51300.00
 WORKING CAPITAL REQUIREMENT

SR.NO. PARTICULARS PERIOD (in Days) AMOUNT

(A)
1 Raw Materials 28 151200.00
2 Consumables 50 8100.00
3 Finished Goods 21 176400.00
4 Sundry Debtors 21 164052.00
499752.00
5 Less: Creditors 7 37800.00
(B) Total Working Capital Requirement 461952.00
OR SAY 450000.00
(C) Cash Credit Limit (@95% on B) 427500.00
(D) Margin Money for Working Capital 22500.00
 DEBT SERVICE COVERAGE RATIO

YEAR I II III IV V

FUNDS FROM OPERATION (A) 211029.00 247265.00 286441.00 328850.00 374816.00

INTEREST ON BANK LOAN (B) 31635.00 24795.00 17955.00 11115.00 4275.00

FUNDS AVAILABLE FOR DEBT SERVICING 242664.00 272060.00 304396.00 339965.00 379091.00
C=(A+B)

TERM LOAN INSTALMENT (D) 57000.00 57000.00 57000.00 57000.00 57000.00

INTEREST ON TERM LOAN (E) 31635.00 24795.00 17955.00 11115.00 4275.00

TOTAL DEBT OBLIGATION (F) 88635.00 81795.00 74955.00 68115.00 61275.00

DEST SERVICE COVERAGE RATIO (C/F) 2.74 3.33 4.06 4.99 6.19

AVERAGE DSCR ------------------------------- 4.26 -------------------------