PROJECT REPORT

MIKHAEL CNC CUTTING

Thomaz Joz

+91 90610 89861

The purpose of this project is to give a brief idea on projected financials for the service we provide.
All the amounts shown here are all typically derived from market revenue trend line as well as the
expenses are at a percentage of the revenue from the current market.
 Contents
INTRODUCTION...........................................................................................................................................3
MARKET ANALYSIS:......................................................................................................................................3
PROJECT PROFILE.........................................................................................................................................4
PARTENERS DETAILS....................................................................................................................................5
PROJECT AT A GLANCE................................................................................................................................6
PROJECTED PROFIT AND LOSS ACCOUNT....................................................................................................7
PROJECTED BALANCE SHEET........................................................................................................................8
PROJECTED CASH FLOW STATEMENT..........................................................................................................9
DEPRECIATION SCHEDULE.........................................................................................................................10
LOAN REPAYMENT SCHEDULE...................................................................................................................11
PROFITABILITY STATEMENT.......................................................................................................................12
Debt Service Coverage Ratio......................................................................................................12
ASSUMPTION AND WORKING NOTES........................................................................................................13

2
INTRODUCTION
Café Fresh is a vibrant and modern cafeteria project located in the bustling town of
Cheemeni, Kerala. The aim of this project is to provide the local community and tourists
with a refreshing and delightful dining experience. Café Fresh will focus on serving a
diverse menu of fresh and healthy food and beverages in a welcoming and hygienic
ambiance. This project report outlines the vision, objectives, market analysis, location,
menu, infrastructure, staffing, marketing strategy, and financial projections for Café Fresh.

Objectives:

The main objectives of Café Fresh are as follows:

a. Establish a modern and aesthetically pleasing cafeteria in Cheemeni, Kasargod.

b. Offer a diverse menu with an emphasis on fresh, healthy, and locally-sourced ingredients.

c. Provide excellent customer service and create a warm and welcoming ambiance.

d. Build a loyal customer base and encourage repeat visits through consistent quality and
innovation.

e. Implement sustainable and eco-friendly practices to contribute positively to the

community and environment.

f. Achieve financial stability and profitability within the first two years of operation.

MARKET ANALYSIS:

Cheemeni's growing population, along with its popularity as a tourist destination, offers a
promising market for Café Fresh. Market research indicates a demand for a café that caters
to health-conscious customers while also offering delicious treats for indulgence. The
presence of educational institutions, offices, and commercial areas further enhances the
potential customer base.

3
PROJECT PROFILE

Name of the Firm : Mikhael CNC Cutting

Address : Mutticharal, Kasargod

Kerala-671531

Activity of the Firm :

Name of the Managing Partner : Nikhil Varghese

Constitution : Proprietorship.

Cost of Project : 14,00,000

Average Debt Service Coverage Ratio :

Average Net Profit Ratio :

The location is having good access to electricity, road etc and it is found to be very ideal and
promising for the project proposed. The building is suitable for running the project.

4
PROMOTERS DETAILS

The unit is promoted by Mr. Nikhil Varghese.The promoter is having wide knowledge in
this field and he has conducted detailed studies in all the aspects of this project.He is
confident of achieving the goals set for this business and have every potential in them to
make the venture a grand success.

Proprietor Profile

(i) Name: Nikhil Varghese

Address: Tharayil House,Ennappara

Thayannur Post,Kerala,671531

5
PROJECT AT A GLANCE

Cost of the Project

Particulars Total
CNC Router 6,25,400.00
Computer and Accessories 1,20,000.00
Inverter 40,000.00
Furniture and Fixtures 1,40,000.00
CCTV 50,000.00
Working Capital 4,24,600.00

Total 14,00,000.00

Means of Finance
Particulars Total
Proprietor Contribution 4,00,000.00
Term Loan 10,00,000.00

Total 14,00,000.00

6
PROJECTED PROFIT AND LOSS ACCOUNT
Operating years
PARTICULARS
Year 1 Year 2 Year 3 Year 4 Year 5
A.INCOME:
Income from Sales & 33,60,0 38,64,0 44,43,6 51,10,1 58,76,6
Service 00 00 00 40 61
3,36,00 3,86,40 4,44,36 5,11,01 5,87,66
Closing Stock
0 0 0 4 6
36,96,0 42,50,4 48,87,9 56,21,1 64,64,3
00 00 60 54 27
B. EXPENSES:
3,36,00 3,86,40 4,44,36 5,11,01
Opening Stock -
0 0 0 4
24,00,0 25,20,0 27,72,0 30,49,2 33,54,1
Purchase of raw material
00 00 00 00 20
4,80,00 5,28,00 5,80,80 6,38,88 7,02,76
Salary
0 0 0 0 8
1,20,00 1,44,00 1,65,60 1,90,44 2,19,00
Rent
0 0 0 0 6
1,03,68 1,24,41
Other Office Expense 60,000 72,000 86,400
0 6
1,03,68 1,24,41 1,49,29
Electricity 72,000 86,400
0 6 9
1,91,81 1,15,13
Depreciation 95,858 80,570 68,206
0 9
33,23,8 38,01,5 41,90,7 46,31,5 51,28,8
Cost of Operations
10 39 38 46 30

C. Profit Before Interest and 3,72,19 4,48,86 6,97,22

9,89,60 13,35,4
Tax 0 2 2 8 97
D. Interest: on Bank loan 80,250 62,250 44,250
26,250 8,250
2,91,94 3,86,61 6,52,97
9,63,35 13,27,2
E. Profit before Tax
0 2 2 8 47
1,09,37 2,19,10
F. Income Tax 44,818
8 1
2,91,94 3,86,61 6,08,15 8,53,97 11,08,1
G. Profit after Tax
0 2 4 9 46

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PROJECTED BALANCE SHEET

Operating Years
PARTICULARS
Year 1 Year 2 Year 3 Year 4 Year 5

A. LIABILITIES :
12,30,68
Capital Account 4,00,000 4,91,940 6,78,552 9,26,706
5
11,08,14
Reserves & Surplus 2,91,940 3,86,612 6,08,154 8,53,979
6
Less : Drawings 2,00,000 2,00,000 3,60,000 5,50,000 7,50,000
12,30,68 15,88,83
4,91,940 6,78,552 9,26,706
5 1
Bank Term loan 8,00,000 6,00,000 4,00,000 2,00,000 -
Income Tax Payable - - 44,818 1,09,378 2,19,101

12,91,9 12,78,5 13,71,5 15,40,0 18,07,9

TOTAL
40 52 24 63 32

B. ASSETS :
Fixed Assets 7,83,590 6,68,452 5,72,594 4,92,024 4,23,817

Current Assets

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 Cash & Bank 22,350 23,700 29,570 37,026 1,46,449
Closing Stock 3,36,000 3,86,400 4,44,360 5,11,014 5,87,666
Other Investments 1,50,000 2,00,000 3,25,000 5,00,000 6,50,000

12,91,9 12,78,5 13,71,5 15,40,0 18,07,9

TOTAL
40 52 24 63 32

PROJECTED CASH FLOW STATEMENT

Operating Years
PARTICULARS
Year 1 Year 2 Year 3 Year 4 Year 5
A. Source of Funds :
Capital Investment 4,00,000
10,00,00
By means of Loan
0
33,60,00 38,64,00 44,43,60 51,10,14 58,76,66
Collection form Debtors
0 0 0 0 1

47,60,0 38,64,0 44,43,6 51,10,1 58,76,6

TOTAL OF ' A '
00 00 00 40 61

B. Application of
Funds :
Fixed Assets 9,75,400 - - - -
24,00,00 25,20,00 27,72,00 30,49,20 33,54,12
Purchase of raw material
0 0 0 0 0
Salary 4,80,000 5,28,000 5,80,800 6,38,880 7,02,768
Rent 1,20,000 1,44,000 1,65,600 1,90,440 2,19,006
Other expenses 60,000 72,000 86,400 1,03,680 1,24,416
Electricity 72,000 86,400 1,03,680 1,24,416 1,49,299

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 Interest Paid 80,250 62,250 44,250 26,250 8,250
Loan repayment 2,00,000 2,00,000 2,00,000 2,00,000 2,00,000
Income tax Paid - - - 44,818 1,09,378
Drawings 2,00,000 2,00,000 3,60,000 5,50,000 7,50,000
Other Investment 1,50,000 50,000 1,25,000 1,75,000 1,50,000
47,37,6 38,62,6 44,37,7 51,02,6 57,67,2
TOTAL OF ' B '
50 50 30 84 38

C. Opening Balance - 22,350 23,700 29,570 37,026

D. Net surplus ( A - B ) 22,350 1,350 5,870 7,456 1,09,423
E. Closing Balance 22,350 23,700 29,570 37,026 1,46,449

DEPRECIATION SCHEDULE

WDV at the year end

PARTICULARS
Year 1 Year 2 Year 3 Year 4 Year 5
CNC Router 6,25,400 5,31,590 4,51,852 3,84,074 3,26,463
Less: Depreciation 93,810 79,739 67,778 57,611 48,969
WDV 5,31,590 4,51,852 3,84,074 3,26,463 2,77,493

Computer and Accessories 1,20,000 72,000 64,800 58,320 52,488

Less: Depreciation 48,000 7,200 6,480 5,832 5,249
WDV 72,000 64,800 58,320 52,488 47,239

Inverter 40,000 24,000 20,400 17,340 14,739

Less: Depreciation 16,000 3,600 3,060 2,601 2,211
WDV 24,000 20,400 17,340 14,739 12,528

Furniture and Fixtures 1,40,000 1,26,000 1,13,400 1,02,060 91,854

Less: Depreciation 14,000 12,600 11,340 10,206 9,185

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 WDV 1,26,000 1,13,400 1,02,060 91,854 82,669

CCTV 50,000 30,000 18,000 10,800 6,480

Less: Depreciation 20,000 12,000 7,200 4,320 2,592
WDV 30,000 18,000 10,800 6,480 3,888

Total Assets 9,75,400 7,83,590 6,68,452 5,72,594 4,92,024

Total Depreciation 1,91,810 1,15,139 95,858 80,570 68,206
Total Closing WDV 7,83,590 6,68,452 5,72,594 4,92,024 4,23,817

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LOAN REPAYMENT SCHEDULE
Normal rate of interest 9.00%
Instalment 60
Amount of loan 10,00,000
Monthly
Repayment
basis
Number of years 1 2 3 4 5
Year ending Year 1 Year 2 Year 3 Year 4 Year 5
Month Term Loan O.B 10,00,000 8,00,000 6,00,000 4,00,000 2,00,000
1 Instalment 16,667 16,667 16,667 16,667 16,667
Interest 7,375 5,875 4,375 2,875 1,375
2 Instalment 16,667 16,667 16,667 16,667 16,667
Interest 7,250 5,750 4,250 2,750 1,250
3 Instalment 16,667 16,667 16,667 16,667 16,667
Interest 7,125 5,625 4,125 2,625 1,125
4 Instalment 16,667 16,667 16,667 16,667 16,667
Interest 7,000 5,500 4,000 2,500 1,000
5 Instalment 16,667 16,667 16,667 16,667 16,667
Interest 6,875 5,375 3,875 2,375 875
6 Instalment 16,667 16,667 16,667 16,667 16,667
Interest 6,750 5,250 3,750 2,250 750
7 Instalment 16,667 16,667 16,667 16,667 16,667
Interest 6,625 5,125 3,625 2,125 625
8 Instalment 16,667 16,667 16,667 16,667 16,667
Interest 6,500 5,000 3,500 2,000 500
9 Instalment 16,667 16,667 16,667 16,667 16,667
Interest 6,375 4,875 3,375 1,875 375
10 Instalment 16,667 16,667 16,667 16,667 16,667
Interest 6,250 4,750 3,250 1,750 250
11 Instalment 16,667 16,667 16,667 16,667 16,667
Interest 6,125 4,625 3,125 1,625 125
12 Instalment 16,667 16,667 16,667 16,667 16,667
Interest 6,000 4,500 3,000 1,500 0

Total Interest 80,250 62,250 44,250 26,250 8,250

Total Repayment for the
2,00,000 2,00,000 2,00,000 2,00,000 2,00,000
year
Total Outflow 2,80,250 2,62,250 2,44,250 2,26,250 2,08,250
Term Loan C.B 8,00,000 6,00,000 4,00,000 2,00,000 -

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EMI 23,354 21,854 20,354 18,854 17,354

PROFITABILITY STATEMENT
Debt Service Coverage Ratio
Operating Years
Particulars
Year 1 Year 2 Year 3 Year 4 Year 5
A. SOURCES :
2,91,9 3,86,6 6,08,1 8,53,97 11,08,1
Profit after tax
40 12 54 9 46
1,91,8 1,15,1
Depreciation 95,858 80,570 68,206
10 39
Interest on term loan 80,250 62,250 44,250 26,250 8,250
1,09,37 2,19,10
Income Tax - - 44,818
8 1
5,64,0 5,64,0 7,93,0 10,70,1 14,03,7
TOTAL OF ' A '
00 00 80 78 04

B DEBT :
2,00,0 2,00,0 2,00,0 2,00,00 2,00,00
Term loan installment
00 00 00 0 0
Interest on Term Loan 80,250 62,250 44,250 26,250 8,250

2,80,2 2,62,2 2,44,2 2,26,25 2,08,25

TOTAL OF ' B '
50 50 50 0 0

C Debt Service Coverage

Ratio
DSCR [A/B] 2.01 2.15 3.25 4.73 6.74

D Average DSCR 3.78

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ASSUMPTION AND WORKING NOTES
Revenue Assumption
Revenue per month is estimated to Rs. 2,80,000/- from Sales.

Raw Material Purchase Costs

Estimated cost for Purchasing material per month is Rs. 2,00,000/-

Depreciation
Depreciation is calculated at the rates prescribed under the Income Tax
Act. Separate Annexure made

Interest
Interest on term loan is Calculated at 9% per annum

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