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DETAI LED PROJ ECT REPORT FOR

M/S. abc cult
(A HDPE/PP Fabrics Project)
Bus.Office:
Address
Kalyan Nagar, Mudalapalya
BANGALORE - 560072.
Prepared by:
Pulkit Sharma
Chartered Accountant
# 1355/30, 9th Main Road
RPC Layout
BANGLORE - 560040
Phone.No : 23302440
Mobile : 96321 92440
e-mail : bangalore@psca.co.in
Hence this project Report is presented.
Now it is proposed to start operation with financial assistance from a suitable commercial bank.
This project has been designed to establish a Trading Concern at Bangalore. It is a Proprietorship concern owned by XYZ. The
proprietor hail from business family and is having experience in this line of business.
I N D E X
CHAPTER :
1 PROJECT AT GLANCE 1
2 COST OF THE PROJECT AND MEANS OF FINANCE 2
3 PROJECTIONS AND PROFITABILITY STATEMENT 3
4 CASH - FLOW STATEMENT 4
5 BALANCE SHEET 5
A N N E X U R E S
1 DEPRECIATION SCHEDULE 6
2 BREAK EVEN ANALYSIS 7
3 INTEREST SCHEDULE 8
4 DEBT COVERAGE RATIO 9
5 ANALYSIS ON RETURN ON INVESTMENT 10
6 ASSUMPTION AND WORKING NOTES 11
C O N T E N T S PAGES
M/S. abc cult
SL.
M/S. abc cult
CHAPTER NO. 1
PROJECT AT GLANCE :
1 Name : M/S. abc cult
2 Address : Reg.Office:
Address
Kalyan Nagar, Mudalapalya
BANGALORE - 560072.
3 Nature of Business : Trading
4 Constitution : Proprietorship
Proprietor :
5 Cost of the project : (Rs. In Lakhs)
Particulars Total
Operational Cost 53.43
Furniture & Fittings 5.00
Generator & Office Equipemnts 1.00
Deposits 2.00
Interest during the impl. Period 3.58
Total 65.00
Means of Finance :
Particulars Total
Proprietor Contribution 9.00
Term Loan from Bank / Institution 56.00
Total 65.00
6 Debt Equity Ratio : 6.22 :1
7 Debt Coverage Ratio : 3.37
8 Gross Profit Ratio : 9.34 First Year Operation.
9 Net Profit Ratio : 8.77 First Year Operation.
10 Employment Potential : 10
11 Return on Investment : 153.13 %
Page 4 of 11
STATEMENT NO. 1
COST OF THE PROJECT AND MEANS OF FINANCE:
The project cost has been estimated at Rs. 65Lakhs
Brief details of the project cost is given below
Cost of the project : (Rs. In Lakhs)
Particulars Total
Operational Cost 53.43
Furniture & Fittings 5.00
Generator & Office Equipemnts 1.00
Deposits 2.00
Interest during the impl. Period 3.58
Total 65.00
Means of Finance :
Particulars Total
Promoters Contribution 9.00
Term Loan from Bank / Institution 56.00
Total 65.00
M/S. abc cult
Bangalore
(A HDPE/PP Fabrics Project)
M/S. abc cult
STATEMENT NO.2
PROJECTIONS AND PROFITABILITY STATEMENT In Lakhs
0 1 2 3 4
A.INCOME:
Income from Trading Activities 390.00 936.00 1,123.20 1,347.84 1,617.41
(50 tons*12*1.3)
(The Quanities Sold are expected to increase by 20% every
year)
390.00 936.00 1,123.20 1,347.84 1,617.41
B. EXPENSES:
Material Purchase Cost and Related cost
(After Adjusting closing stock) 351.00 842.40 1,010.88 1,213.06 1,455.67
Salary 6.00 6.30 6.62 6.95 7.29
Power Charges 0.12 0.13 0.13 0.14 0.15
Depreciation 0.45 0.83 0.71 0.60 0.51
Cost of Operations 357.57 849.66 1,018.33 1,220.74 1,463.62
C. Gross Profit [ A - B ] 32.43 86.34 104.87 127.10 153.79
D. Interest: on term loan 3.58 6.18 4.42 1.95 -
3.58 6.18 4.42 1.95 -
E. Selling & Admin. Exp. 1.80 1.89 1.98 2.08 2.19
F. Profit before Tax[ C - (D+E) ] 27.06 78.28 98.46 123.06 151.60
G. Income Tax 8.12 23.48 29.54 36.92 45.48
H. Profit after Tax ( F-G ) 18.94 54.79 68.92 86.14 106.12
I. Depreciation added back 0.45 0.83 0.71 0.60 0.51
J. Cash Accruals ( H + I ) 19.39 55.63 69.63 86.75 106.63
L. Repayment of Term Loan 4.00 12.00 16.00 24.00 -
M. Net Cash A'ble (J - K)) 15.39 43.63 53.63 62.75 106.63
PARTICULARS
Operating years
M/S. abc cult
STATEMENT No.3
CASH - FLOW STATEMENT :
(A HDPE/PP Fabrics Project)
0 1 2 3 4
A. Source of Funds :
Profit after Tax 18.94 54.79 68.92 86.14 106.12
Depreciation 0.45 0.83 0.71 0.60 0.51
Term Loan from Bank 56.00
Promoters Contribution 9.00 - - - -
TOTAL OF ' A ' 84.39 55.63 69.63 86.75 106.63
B. Application of Funds :
Furniture & Fittings 5.00 - - - -
Gen & Office Equipts, 1.00
Deposits 2.00
Repayment of loan 4.00 12.00 16.00 24.00 -

TOTAL OF ' B ' 12.00 12.00 16.00 24.00 -

C. Opening Balance - 72.39 116.01 169.64 232.39

D. Net surplus ( A - B ) 72.39 43.63 53.63 62.75 106.63
E. Closing Balance 72.39 116.01 169.64 232.39 339.02
PARTICULARS
Operating Years
M/S. abc cult
STATEMENT No.4
BALANCE SHEET
(A HDPE/PP Fabrics Project)
0 1 2 3 4
A. LIABILITIES :
Capital Account 9.00 9.00 9.00 9.00 9.00
Reserves & Surplus 18.94 73.73 142.65 228.80 334.92
Secured Loan 52.00 40.00 24.00 - -
TOTAL 79.94 122.73 175.65 237.80 343.92
B. ASSETS :
Fixed Assets 5.55 4.72 4.01 3.41 2.90
Current Assets
Cash & Bank 72.39 116.01 169.64 232.39 339.02
Deposits 2.00 2.00 2.00 2.00 2.00

TOTAL 79.94 122.73 175.65 237.80 343.92
PARTICULARS
Operating Years
ANNEXURE NO.1
DEPRECIATION SCHEDULE: (A HDPE/PP Fabrics Project)
0 1 2 3 4
1. Furniture & Fittings 5.00 4.63 3.93 3.34 2.84
Depreciation @ 15% 0.38 0.69 0.59 0.50 0.43
WDV 4.63 3.93 3.34 2.84 2.41
4. Genr & Office Equipts 1.00 0.93 0.79 0.67 0.57
Depreciation @ 15% 0.08 0.14 0.12 0.10 0.09
WDV 0.93 0.79 0.67 0.57 0.48
Total Assets
[1+2+3+4] 5.55 4.72 4.01 3.41 2.90
Total Depreciation
[1+2+3+4] 0.45 0.83 0.71 0.60 0.51
M/S. abc cult
Bangalore
(A HDPE/PP Fabrics Project)
PARTICULARS
WDV at the year end
M/S. abc cult
ANNEXURE NO.2
BREAK-EVEN ANALYSIS
0 1 2 3 4
A. Receipts 390.00 936.00 1,123.20 1,347.84 1,617.41
B. Variable cost: 357.57 849.66 1018.33 1220.74 1463.62
D. Fixed costs:
Depreciation 0.45 0.83 0.71 0.60 0.51
Interest on Term Loan 3.58 6.18 4.42 1.95 0.00
Administration Expenses 1.80 1.89 1.98 2.08 2.19
5.83 8.90 7.11 4.64 2.70
E. Contribution [ B - C ] 32.43 86.34 104.87 127.10 153.79
F. P.V.Ratio [ E/B x 100 ] 8.32 9.22 9.34 9.43 9.51
G. Break - even [ Value ]
[ D / F x 100 ] 70.05 96.45 76.18 49.16 28.39
H. Cash Break Even 64.64 87.43 68.60 42.78 23.01
[ Without Depreciation]
(A HDPE/PP Fabrics Project)
Years
M/S. abc cult
ANNEXURE NO.3
INTEREST SCHEDULE : (Rs. in Lakhs)
(A HDPE/PP Fabrics Project) QUARTERS OPENING LOAN CLOSING INTEREST INTEREST
BALANCE REPAYMENT BALANCE PER QTR. P.A.
0 1 56.00 - 56.00 0.00
2 56.00 - 56.00 0.00
3 56.00 2.00 54.00 1.82
4 54.00 2.00 52.00 1.76 3.58
I 1 52.00 3.00 49.00 1.69
2 49.00 3.00 46.00 1.59
3 46.00 3.00 43.00 1.50
4 43.00 3.00 40.00 1.40 6.18
II 1 40.00 4.00 36.00 1.30
2 36.00 4.00 32.00 1.17
3 32.00 4.00 28.00 1.04
4 28.00 4.00 24.00 0.91 4.42
III 1 24.00 6.00 18.00 0.78
2 18.00 6.00 12.00 0.59
3 12.00 6.00 6.00 0.39
4 6.00 6.00 - 0.20 1.95
NOTE : Interest on Term Loan is calculated at 13% per annum liquidated in
4 year
M/S. abc cult
ANNEXURE NO.4
DEBT SERVICE COVERAGE RATIO :
0 1 2 3 4
A. SOURCES :
Profit after tax 18.94 54.79 68.92 86.14 106.12
Depreciation 0.45 0.83 0.71 0.60 0.51
Interest on term loan 3.58 6.18 4.42 1.95 -
TOTAL OF ' A ' 22.96 61.80 74.05 88.70 106.63
B DEBT :
Term loan installment 4.00 12.00 16.00 24.00 -
Interest on Term Loan 3.58 6.18 4.42 1.95 -

TOTAL OF ' B ' 7.58 18.18 20.42 25.95 -
C Debt Service Coverage Ratio
DSCR [ A / B ] 3.03 3.40 3.63 3.42 -
D Average DSCR 3.37
(A HDPE/PP Fabrics Project)
Operating Years
M/S. abc cult
ANNEXURE NO.5
ANALYSIS OF RETURN ON INVESTMENT :
(A HDPE/PP Fabrics Project)
1. Return on Investment =
2. Return = Profit before tax + Depreciation + Interest on term loan
3. Capital Employed = Cost of the Project
RETURN ON INVESTMENT :
0 1 2 3 4
Profit before tax 27.06 78.28 98.46 123.06 151.60
Depreciation 0.45 0.83 0.71 0.60 0.51
Interest on Term Loan 3.58 6.18 4.42 1.95 -
31.08 85.28 103.59 125.62 152.11
# Average Return 99.54
# Capital Employed 65.00
# Return on Investment 153.13 %
Average Return x 100
Capital Employed
PARTICULARS
O P E R T I N G Y E A R S
M/S. abc cult
ANNEXURE NO.6
Assumption and workings notes to the Financial Statements of the Project Report:
1 Revenue In Lakhs
Sale of HDPE/pp Fabrics
Total Quantity Estimated to be sold for a month : 50 tons
Sale value of each Ton : 1.3
Monthly Revenue : 65.00
Yearly Revenue 780.00
First year Revenue for 6 months 390.00
2 Material Purchase Costs
3 Salary
S.No. Category of Employee No.of Salary per
Employees Month
1 Managers 2 6,750.00
2 Helpers 7 4,500.00
3 Accountant 1 5,000.00
Total 10
Note: Increament in salary is taken at 5% per annum
4 Power
Power Charges is estimated at Rs.1000/- per month and provision made for increase
in rates @ 5% per annuam
5 Depreciation:
Depreciation is calculated at the rates prescribed under
the Income Tax Act. Separate Annexure made
6 Interest:
Interest on term loan is calculated at 13% per annum
Term loan will be repaid in 4 year
7 Selling and Administration Expenses:
Selling expenses includes sales commission, Post & Telephone expenses and other
Office maintenance expenses.
It is estimated at Rs.15,000/- per month and provision made for increase in cost
at 5% per annuam
Every year the Revenue is estimated to increase
by 20%.
The material is estimated to cost at 90% of sales price.
The cost for 1 year is 390*90% = 351 Lakhs
Salary per
Annuam
600,000.00
162,000.00
378,000.00
60,000.00
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