PROJECT REPORT

Of

MOSQUITO RACKET

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Mosquito Racket Manufacturing 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 : MOSQUITO RACKET

6 Name of the project / business activity proposed : MOSQUITO RACKET MANUFACTURING UNIT

7 Cost of Project : Rs.23.54 Lakhs

8 Means of Finance
Term Loan Rs.15.39 Lakhs
Own Capital Rs.2.35 Lakhs
Working Capital Rs.5.79 Lakhs

9 Debt Service Coverage Ratio : 2.24

10 Pay Back Period : 5 Years

11 Project Implementation Period : 5-6 Months

12 Break Even Point : 34%

13 Employment : 11 Persons

14 Power Requirement : 34.00 HP

ABS Plastic Granules, Electrical Components, Metal

15 Major Raw materials
: and other parts

16 Estimated Annual Sales Turnover (Max Capacity) : 127.98 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Plant & Machinery 16.30
Furniture & Fixtures 0.80
Working Capital 6.44
Total 23.54

MEANS OF FINANCE
Particulars Amount
Own Contribution 2.35
Working Capital(Finance) 5.79
Term Loan 15.39
Total 23.54
MOSQUITO RACKET MANUFACTURING UNIT

Introduction:

The racket is a device used to kill mosquitos; the user waves the racket around
to catch a mosquito between the metal grid, which shorts the circuit and
electrocutes the insect. It is an electronic device that produces high voltage around
300-400 volts in the nets. When the mosquito passes through the outer and inner nets
of the racket, its wings short out and sparks will destroy it. This device mainly
consists of control circuit board, Lead acid battery, and Metal mesh parts.

Uses & Market Potential:

The electric mosquito racket is a household device used widely to kill mosquitoes.
This rechargeable tool can also be used to kill other insects and bugs and would be
a useful tool for balconies and patios. According to the latest market study, the global
electronic insect killer market is expected to reach USD 234.80 million by 2021,
growing at a CAGR of almost 7%. The rapid spread of the diseases such as the West
Nile virus and the Zika virus across the globe over a period demonstrates the growing
need for organized insect control devices. Insects are highly effective and deadly
vectors that cause diseases in humans as well as animals. These insects spread
communicable diseases like malaria, encephalitis, dengue fever, and, most recently,
West Nile virus and Zika virus. The insect control activities are conducted for many
reasons- economics, agricultural productivity, recreational enjoyment, and livestock
health and safety. The large electronic insect killers are in major demand from the
commercial sector compared with the residential sector. Mosquito killer Rackets
comprise 14% of the total market for electronic insect killers. The residential sector
mainly uses the rackets to do away with insects and mosquitoes. The market for
rackets is in its growing stage and is expected to be dominated by the demand from
the developing economies due to low product prices. The frequent charging
requirements of the product hinders the market. The low coverage and success rates
of killing the insect also prevent the demand for the product.

Product:
Mosquito Racket

Raw Material:
Basic raw material are ABS Plastic Granules, Electrical Components, Metal and Others
(Screws, push button, solder wire, etc.)
Manufacturing Process:

RAW MATERIAL PROCUREMENT

PLASTIC MOULDING

PCB ASSEMBLY

ASSEMBLY

TESTING

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

Injection Moulding Machine 1 800000 800000
Expanded Aluminium Mesh Making Machine 1 150000 150000

Mesh Cutting Machine 1 200000 200000

Press Machine 1 180000 180000

Shearing Machine 1 250000 250000

Other tools and equipment’s - 50000 50000

Total Amount 1630000

Power Requirement- The estimated Power requirement is taken at 34 HP.

Manpower Requirement– Following manpower is required:

 Machine operator-2
 Skilled/unskilled worker-3
 Helper-4
 Manager cum Accountant-1
 Sales Personnel-1

FINANCIALS
PROJECTED BALANCE SHEET

PARTICULARS I II III IV V

SOURCES OF FUND
Capital Account
Opening Balance - 3.24 4.85 6.97 9.95
Add: Additions 2.35 - - - -
Add: Net Profit 3.89 5.01 6.12 7.27 8.73
Less: Drawings 3.00 3.40 4.00 4.30 5.20
Closing Balance 3.24 4.85 6.97 9.95 13.48
CC Limit 5.79 5.79 5.79 5.79 5.79
Term Loan 13.68 10.26 6.84 3.42 -
Sundry Creditors 2.10 2.41 2.73 3.06 3.41

TOTAL : 24.81 23.31 22.34 22.22 22.68

APPLICATION OF FUND

Fixed Assets ( Gross) 17.10 17.10 17.10 17.10 17.10

Gross Dep. 2.53 4.68 6.51 8.07 9.40
Net Fixed Assets 14.58 12.42 10.59 9.03 7.70

Current Assets
Sundry Debtors 3.35 4.08 4.68 5.31 5.97
Stock in Hand 5.19 5.98 6.78 7.61 8.48
Cash and Bank 1.70 0.83 0.28 0.26 0.53

TOTAL : 24.81 23.31 22.34 22.22 22.68

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

A) SALES
Gross Sale 71.82 87.40 100.30 113.83 127.98

Total (A) 71.82 87.40 100.30 113.83 127.98

B) COST OF SALES

Raw Material Consumed 42.00 48.20 54.62 61.28 68.19

Elecricity Expenses 3.04 3.42 3.80 4.19 4.57
Repair & Maintenance 1.80 2.18 2.51 2.85 3.20
Labour & Wages 12.35 15.44 18.21 21.13 24.09
Depreciation 2.53 2.15 1.83 1.56 1.33
Cost of Production 61.71 71.39 80.98 91.00 101.37

Add: Opening Stock /WIP - 3.09 3.57 4.05 4.55

Less: Closing Stock /WIP 3.09 3.57 4.05 4.55 5.07

Cost of Sales (B) 58.63 70.91 80.50 90.50 100.85

C) GROSS PROFIT (A-B) 13.19 16.49 19.80 23.32 27.13

18.37% 18.87% 19.74% 20.49% 21.20%
D) Bank Interest i) (Term Loan ) 1.67 1.36 0.99 0.61 0.24
ii) Interest On Working Capital 0.64 0.64 0.64 0.64 0.64
E) Salary to Staff 5.92 6.87 8.38 10.06 11.26
F) Selling & Adm Expenses Exp. 1.08 2.45 3.21 3.98 5.12

G) TOTAL (D+E+F) 9.31 11.32 13.22 15.29 17.26

H) NET PROFIT 3.89 5.17 6.58 8.03 9.88

5.4% 5.9% 6.6% 7.1% 7.7%
I) Taxation - 0.17 0.46 0.76 1.14

J) PROFIT (After Tax) 3.89 5.01 6.12 7.27 8.73

PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V

SOURCES OF FUND

Own Contribution 2.35 - - - -

Reserve & Surplus 3.89 5.17 6.58 8.03 9.88
Depriciation & Exp. W/off 2.53 2.15 1.83 1.56 1.33
Increase In Cash Credit 5.79 - - - -
Increase In Term Loan 15.39 - - - -
Increase in Creditors 2.10 0.31 0.32 0.33 0.35

TOTAL : 32.05 7.63 8.74 9.93 11.55

APPLICATION OF FUND

Increase in Fixed Assets 17.10 - - - -

Increase in Stock 5.19 0.79 0.80 0.83 0.86
Increase in Debtors 3.35 0.73 0.60 0.63 0.66
Repayment of Term Loan 1.71 3.42 3.42 3.42 3.42
Taxation - 0.17 0.46 0.76 1.14
Drawings 3.00 3.40 4.00 4.30 5.20
TOTAL : 30.35 8.51 9.28 9.95 11.29

Opening Cash & Bank Balance - 1.70 0.83 0.28 0.26

Add : Surplus 1.70 - 0.87 - 0.55 - 0.02 0.26

Closing Cash & Bank Balance 1.70 0.83 0.28 0.26 0.53
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS I II III IV V

Finished Goods
(15 Days requirement) 3.09 3.57 4.05 4.55 5.07
Raw Material
(15 Days requirement) 2.10 2.41 2.73 3.06 3.41

Closing Stock 5.19 5.98 6.78 7.61 8.48

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Amount Margin(10%) Net

Amount
Stock in Hand 5.19
Less:
Sundry Creditors 2.10
Paid Stock 3.09 0.31 2.78

Sundry Debtors 3.35 0.34 3.02

Working Capital Requirement 5.79

Margin 0.64

MPBF 5.79
Working Capital Demand 5.79
REPAYMENT SCHEDULE OF TERM LOAN 11.0%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance
Ist Quarter - 15.39 15.39 0.42 - 15.39
Iind Quarter 15.39 - 15.39 0.42 - 15.39
IIIrd Quarter 15.39 - 15.39 0.42 0.86 14.54
Ivth Quarter 14.54 - 14.54 0.40 0.86 13.68
1.67 1.71
II Opening Balance
Ist Quarter 13.68 - 13.68 0.38 0.86 12.83
Iind Quarter 12.83 - 12.83 0.35 0.86 11.97
IIIrd Quarter 11.97 - 11.97 0.33 0.86 11.12
Ivth Quarter 11.12 11.12 0.31 0.86 10.26
1.36 3.42
III Opening Balance
Ist Quarter 10.26 - 10.26 0.28 0.86 9.41
Iind Quarter 9.41 - 9.41 0.26 0.86 8.55
IIIrd Quarter 8.55 - 8.55 0.24 0.86 7.70
Ivth Quarter 7.70 7.70 0.21 0.86 6.84
0.99 3.42
IV Opening Balance
Ist Quarter 6.84 - 6.84 0.19 0.86 5.99
Iind Quarter 5.99 - 5.99 0.16 0.86 5.13
IIIrd Quarter 5.13 - 5.13 0.14 0.86 4.28
Ivth Quarter 4.28 4.28 0.12 0.86 3.42
0.61 3.42
V Opening Balance
Ist Quarter 3.42 - 3.42 0.09 0.86 2.57
Iind Quarter 2.57 - 2.57 0.07 0.86 1.71
IIIrd Quarter 1.71 - 1.71 0.05 0.86 0.85
Ivth Quarter 0.85 0.85 0.02 0.86 - 0.00
0.24 3.42

Door to Door Period 60 Months

Moratorium Period 6 Months
Repayment Period 54 Months
Assumptions:
1. Production Capacity of Mosquito Racket Manufacturing unit is taken at 700 Pcs
per day. First year, Capacity has been taken @ 40%.

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 34 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.
CALCULATION OF D.S.C.R
PARTICULARS I II III IV V

CASH ACCRUALS 6.41 7.16 7.95 8.83 10.06

Interest on Term Loan 1.67 1.36 0.99 0.61 0.24

Total 8.08 8.52 8.94 9.44 10.30

REPAYMENT
Repayment of Term Loan 1.71 3.42 3.42 3.42 3.42
Interest on Term Loan 1.67 1.36 0.99 0.61 0.24

Total 3.38 4.78 4.41 4.03 3.66

DEBT SERVICE COVERAGE RATIO 2.39 1.78 2.03 2.34 2.82

AVERAGE D.S.C.R. 2.24