RATIO ANALYSIS

1st year 2nd year 3rd Year 4th Year 5th Year

Current Ratio 2.48 3.70 5.05 6.50 8.05

NP Ratio 5.30 5.82 6.31 6.76 7.19

GP Ratio 16.56 16.56 16.56 16.56 16.56

 PROJECT AT A GLANCE

NAME OF THE UNIT ZARA ENTERPRISES

LOCATION KALAVAMKODAM

CONSTITUTION PROPRIETORY

FACILITY SOUGHT FOR TERM LOAN & WORKING CAPITAL FUND

WORKING CAPITAL REQUIREMENT 7.50 LAKHS

FIXED ASSETS 12.14 LAKHS

OWN FUND 5.64 LAKHS

BANK O/D 5.00 LAKHS

TERM LOAN 9.00 LAKHS

TURN OVER FOR 1ST YAER 216 LAKHS

G.P.RATIO 16.56

N.P.RATIO 5.30

D.S.C.R 9.94

BREAK EVEN SALES 145.33

MARGIN OF SAFETY 81.30

 BREAK EVEN POINT

Sales 216.00

Production Expenses 180.24

Contribution 35.76

Contribution Ratio 16.56

Fixed Expenses 22.30

Breakeven sales 134.70

Margin of Safety 81.30

 TOTAL COST OF PROJECT

FIXED ASSETS 1,214,823.00

Semi Automatic Pet Stretch

Blow Moulding Machine with
Accessories 1,014,823.00

Other fixed Assets 200,000.00

WORKING CAPITAL 750,000.00

TOTAL 1,964,823.00

MEANS OF FINANCE

BORROWED FUND 1,400,000.00

Term Loan from Bank 900,000.00

Bank Overdraft facility 500,000.00

OWN FUND 564,823.00

TOTAL 1,964,823.00

WORKING CAPITAL REQUIREMENT

Direct Material Cost per year 17,760,000.00

Direct Labour Cost per year 264,000.00

TOTAL MANUFACTURING COST 18,024,000.00

15 Days Requirement 750,000.00

 REPAYMENT SCHEDULE

Rs. In Lacs.

1st YEAR 2nd YEAR 3rd YEAR 4th YEAR 5th YEAR 6th YEAR 7th YEAR

Principal 9.00 7.71 6.43 5.14 3.86 2.57 1.28

Interest 1.35 1.16 0.96 0.77 0.58 0.39 0.19

REPAYMENT

Principal 1.29 1.29 1.29 1.29 1.29 1.29 1.28

Interest 1.35 1.16 0.96 0.77 0.58 0.39 0.19

TOTAL 2.64 2.44 2.25 2.06 1.86 1.67 1.48

 PROJECTED PROFITABILITY STATEMENT.
Rs. In Lacs.

1st YEAR 2nd YEAR 3rd YEAR 4th YEAR 5th YEAR 6th YEAR 7th YEAR

Sales 216.00 237.60 261.36 287.50 316.25 347.87 382.66

Production Expenses 180.24 198.26 218.09 239.90 263.89 290.28 319.31

Gross Profit 35.76 39.34 43.27 47.60 52.36 57.59 63.35

Administration and Establishment Expenses 19.00 19.95 20.95 21.99 23.09 24.25 25.46

Net Profit before Interest and depreciation 16.76 19.39 22.32 25.60 29.26 33.34 37.89

Interest and Bank Charges 2.10 1.91 1.71 1.52 1.33 1.14 0.94

Depreciation 1.20 1.20 1.20 1.20 1.20 1.20 1.20

Profit After Interest and Depreciation 13.46 16.28 19.41 22.88 26.73 31.01 35.75

Provision for Taxation 2.02 2.44 2.91 3.43 4.01 4.65 5.36

Profit After Taxation 11.44 13.84 16.50 19.45 22.72 26.36 30.38
 PROJECTED CAPITAL ACCOUNT

Rs. In Lacs.

1st YEAR 2nd YEAR 3rd YEAR 4th YEAR 5th YEAR 6th YEAR 7th YEAR

Opening balance 5.64 13.58 23.42 35.41 49.86 67.09 87.94

Add: Net Profit 11.44 13.84 16.50 19.45 22.72 26.36 30.38

Less: Drawings 3.50 4.00 4.50 5.00 5.50 5.50 5.50

Total 13.58 23.42 35.41 49.86 67.09 87.94 112.83

 PROJECTED BALANCE SHEET

Rs. In Lacs.

1st YEAR 2nd YEAR 3rd YEAR 4th YEAR 5th YEAR 6th YEAR 7th YEAR

LIABILITIES

Capital 13.58 23.42 35.41 49.86 67.09 87.94 112.83

Term Loan 7.71 6.43 5.14 3.86 2.57 1.28 -

Bank O/D 5.00 5.00 5.00 5.00 5.00 5.00 5.00

Provision for Taxation 2.02 2.44 2.91 3.43 4.01 4.65 5.36

TOTAL 28.31 37.29 48.47 62.15 78.67 98.88 123.19

ASSETS

Fixed Assets 10.94 9.74 8.54 7.34 6.14 4.94 3.74

Other Current Assets 17.37 27.55 39.93 54.81 72.53 93.94 119.45

TOTAL 28.31 37.29 48.47 62.15 78.67 98.88 123.19

 FUND FLOW STATEMENT
Rs.in Lacs

2nd YEAR 3rd YEAR 4th YEAR 5th YEAR 6th YEAR 7th YEAR

INFLOW

Increase in Capital 9.84 12.00 14.45 17.22 20.86 24.88

Increase in Provision for Taxation 0.42 0.47 0.52 0.58 0.64 0.71

TOTAL 10.26 12.47 14.97 17.80 21.50 25.60

OUT FLOW

Decrease in Term Loan 1.29 1.29 1.29 1.29 1.29 1.28

Increase in Fixed Assets -1.20 -1.20 -1.20 -1.20 -1.20 -1.20

Increase in current assets 10.17 12.38 14.88 17.72 21.41 25.51

TOTAL 10.26 12.47 14.97 17.80 21.50 25.60

 DEBT SERVICE COVERAGE RATIO
Rs. In Lacs.

1st YEAR 2nd YEAR 3rd YEAR 4th YEAR 5th YEAR 6th YEAR 7th YEAR

Net Profit 15.56 18.19 21.12 24.40 28.06 32.14 36.69

Add: Depreciation 1.20 1.20 1.20 1.20 1.20 1.20 1.20

Cash Profit 16.76 19.39 22.32 25.60 29.26 33.34 37.89

Repayment 3.386 3.1931 3.0002 2.8073 2.6144 2.4215 2.2266

DSCR 4.95 6.07 7.44 9.12 11.19 13.77 17.02

AVERAGE 9.94
 PRODUCTION BUDGET

Standard OutPut of the Machine 1250 Bottles / Hour

Expected activity Level 80%

Budgeted Output per Hour 1000Bottles/Hour

Machine Working Hours per Day 16 Hours

Budgeted Output per day 16000Bottles

Budgeted Output per Year 4800000 Bottles

(Assuiming 300 working days per year)

MATERIAL REQUIREMENT

Material cost per bottle Rs. 3.70

Budgeted Output per Day 16000 Bottles

Material Cost per day Rs.59200

Material Cost per year Rs.17760000

LABOUR REQUIREMENT
Particulars No. Cost

DIRECT LABOUR

Supervisor 1 Rs.8000 p.m.

Machine Operator 1 Rs.6000 p. m

Helpers 2 Rs.4000 p .m / Helper

Total Direct Labour Rs.22000 p.m

Total Direct Labour Cost per year Rs.264000

INDIRECT LABOUR

Office Staff 2 Rs.5000 p.m/Staff

Total Indirect Labour Cost per year Rs.120000