For Limited Circulation

PROJECT REPORT FOR

Mr. Nitesh Gupta
(A Gold Ornaments & Jwellery Manufacturing and Trading Project)

[Link]:
Address:
Opp. Gate No.1 Veersavarkar Nagar
Bareilly (UP)-243001.

This project has been designed to establish a Manufacturing and Trading Concern at Bareilly (UP). It is a
Proprietorship concern owned by [Link] Gupta. The proprietor hail from business family and is having
experience in this line of business.
Now it is proposed to start operation with financial assistance from a suitable commercial bank.
Hence this project Report is presented.

Prepared by:
Accountnt name
CA Harsh Agarwal
407/1-2, Chahbai,
Opp. Bhagwan Sweets
Bareilly, (UP)-243003
Mobile No. 8273383064
e-mail : caharshagarwal0205@[Link]
 Mr. Nitesh Gupta

I N D E X
SL. CONTENTS PAGES

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

ANNEXURES
1 DEPRECIATION SCHEDULE 6
2 BREAK EVEN ANALYSIS 7
3 DEBT COVERAGE RATIO 8
4 ANALYSIS ON RETURN ON INVESTMENT 9
Mr. Nitesh Gupta
CHAPTER NO. 1
PROJECT AT GLANCE :
1 Name : Mr. Nitesh Gupta
S/o Shri Sudesh Kumar Gupta
2 Address : [Link]:
Address:
Opp. Gate No.1 Veersavarkar Nagar
Bareilly (UP)-243001.

3 Nature of Business : Manufacturing & Trading of Gold Ornaments

4 Scale : Small Scale Manufacturing Unit

5 Constitution : Proprietorship
Proprietor : [Link] Gupta
Firm Name : Neelkanth Jwellers

6 Cost of the project : (Rs. In Lakhs)

Particulars Total
Operational Cost 16.80
Furniture & Fittings 2.25
Machines & Office Equipemnts 10.00
Deposits 2.00
Interest during the impl. Period 1.45
Total 32.50

Means of Finance :
Particulars Total
Proprietor Contribution 7.50
Term Loan from Bank / Institution 25.00

Total 32.50

7 Debt Equity Ratio : 3.33 :1

8 Debt Coverage Ratio : 3.64
9 Gross Profit Ratio : 6.95 First Year Operation.
10 Net Profit Ratio : 3.85 First Year Operation.
11 Employment Potential : 10
12 Return on Investment : 62.20 %
13 Feasibility : Technically feasible and economically viable

Page 2 of 11
Mr. Nitesh Gupta
Bareilly (UP)

(A Gold Ornaments & Jwellery Manufacturing and Trading Project)

STATEMENT NO. 1

COST OF THE PROJECT AND MEANS OF FINANCE:

The project cost has been estimated at Rs. 32.5Lakhs

Brief details of the project cost is given below

Cost of the project : (Rs. In Lakhs)

Particulars Total
Operational Cost 16.80
Furniture & Fittings 2.25
Machines & Office Equipemnts 10.00
Deposits 2.00
Interest during the impl. Period 1.45
Total 32.50

Means of Finance :
Particulars Total
Promoters Contribution 7.50
Term Loan from Bank / Institution 25.00
Total 32.50
 Mr. Nitesh Gupta
STATEMENT NO.2
PROJECTIONS AND PROFITABILITY STATEMENT (In Lakhs)
Operating years
PARTICULARS
0 1 2 3 4 5 6
[Link]:
Income from Trading Activities 150.00 180.00 216.00 259.20 311.04 373.25 447.90

150.00 180.00 216.00 259.20 311.04 373.25 447.90

B. EXPENSES:
Material Purchase Cost and Related cost
(After Adjusting closing stock) 131.25 157.50 189.00 226.80 272.16 326.59 391.91
Salary 6.12 8.16 8.77 9.43 10.14 10.90 11.71
Power Charges 0.27 0.36 0.39 0.42 0.45 0.48 0.52
Depreciation 1.73 1.48 1.27 1.09 0.93 0.80 0.69
Cost of Operations 139.37 167.50 199.43 237.73 283.68 338.77 404.83

C. Gross Profit [ A - B ] 10.64 12.50 16.58 21.47 27.36 34.48 43.07

D. Interest: on term loan 1.45 1.73 1.48 1.22 0.93 0.62 0.28
1.45 1.73 1.48 1.22 0.93 0.62 0.28

E. Selling & Admin. Exp. 3.50 3.85 4.18 4.53 4.99 5.48 6.03

F. Profit before Tax[ C - (D+E) ] 5.69 6.92 10.91 15.72 21.45 28.37 36.75

G. Income Tax 0.26 0.51 1.40 2.84 4.56 6.64 9.15

H. Profit after Tax ( F-G ) 5.43 6.41 9.51 12.88 16.89 21.74 27.60

I. Depreciation added back 1.73 1.48 1.27 1.09 0.93 0.80 0.69

J. Cash Accruals ( H + I ) 7.15 7.89 10.78 13.96 17.82 22.54 28.29

L. Repayment of Term Loan 2.06 2.95 3.19 3.46 3.74 4.05 4.39

M. Net Cash A'ble (J - K)) 5.09 4.94 7.59 10.51 14.08 18.48 23.90

Salary
[Link]. Category of Employee [Link] Salary per Salary per
Employees Month Annuam
1 Semi-Skilled 8 6,500.00 468,000.00
2 Skilled 2 8,000.00 144,000.00
Total 10 14,500.00 612,000.00
Note: Increament in salary is taken at 7.5%p.a. for the following years
Mr. Nitesh Gupta
STATEMENT No.3

CASH - FLOW STATEMENT :

Operating Years
PARTICULARS
0 1 2 3 4 5 6
A. Source of Funds :
Profit after Tax 5.43 6.41 9.51 12.88 16.89 21.74 27.60
Depreciation 1.73 1.48 1.27 1.09 0.93 0.80 0.69
Term Loan from Bank 25.00
Promoters Contribution 7.50 - - - - - -
Increase in Sundry Expense/Payable - 1.50 1.88 2.34 2.93 3.66 4.58
TOTAL OF ' A ' 39.65 9.39 12.66 16.31 20.75 26.20 32.86

B. Application of Funds :
Furniture & Fittings 2.25 - - - - - -
Machines & Office Equipts, 10.00
Deposits/Receivables (Increase/Decrease) 2.00 1.20 1.44 1.73 2.07 2.49 2.99
Inventory 15.00 4.50 5.85 7.61 9.89 12.85 16.71
Repayment of loan 2.06 2.95 3.19 3.46 3.74 4.05 4.39

TOTAL OF ' B ' 31.31 8.65 10.48 12.79 15.70 19.40 24.09

C. Opening Balance - 8.34 9.08 11.26 14.77 19.82 26.62

D. Net surplus ( A - B ) 8.34 0.74 2.17 3.52 5.04 6.80 8.78

E. Closing Balance 8.34 9.08 11.26 14.77 19.82 26.62 35.40

Mr. Nitesh Gupta
STATEMENT No.4

BALANCE SHEET
(A Gold Ornaments & Jwellery Manufacturing and Trading Project)
Operating Years
PARTICULARS
0 1 2 3 4 5 6

A. LIABILITIES :
Capital Account 7.50 7.50 7.50 7.50 7.50 7.50 7.50
Reserves & Surplus 5.43 11.84 21.36 34.23 51.12 72.86 100.46
Secured Loan 22.94 19.99 16.80 13.34 9.60 5.54 1.15
Sundry Expenses/Payble - 1.50 3.38 5.72 8.65 12.31 16.89
TOTAL 35.87 40.83 49.03 60.79 76.87 98.21 126.00

B. ASSETS :
Fixed Assets 10.53 9.05 7.78 6.70 5.77 4.97 4.28
Current Assets
Inventory 15.00 19.50 25.35 32.96 42.84 55.69 72.40
Cash & Cash Equivalents 8.34 9.08 11.26 14.77 19.82 26.62 35.40
Deposits/Sundry Receivables 2.00 3.20 4.64 6.37 8.44 10.93 13.92

TOTAL 35.87 40.83 49.03 60.79 76.87 98.21 126.00

Mr. Nitesh Gupta
Bareilly (UP)

(A Gold Ornaments & Jwellery Manufacturing & Trading Project)

ANNEXURE NO.1

DEPRECIATION SCHEDULE:
WDV at the year end
PARTICULARS
0 1 2 3 4 5 6
1. Furniture & Fittings 2.25 2.03 1.82 1.64 1.48 1.33 1.20
Depreciation @ 10% 0.23 0.20 0.18 0.16 0.15 0.13 0.12
WDV 2.03 1.82 1.64 1.48 1.33 1.20 1.08

4. Machines & Office Equipts 10.00 8.50 7.23 6.14 5.22 4.44 3.77
Depreciation @ 15% 1.50 1.28 1.08 0.92 0.78 0.67 0.57
WDV 8.50 7.23 6.14 5.22 4.44 3.77 3.21

Total Assets
[1+2+3+4] 10.53 9.05 7.78 6.70 5.77 4.97 4.28

Total Depreciation
[1+2+3+4] 1.73 1.48 1.27 1.09 0.93 0.80 0.69

Depreciation:
Depreciation is calculated at the rates prescribed under
the Income Tax Act. Separate Annexure made
Mr. Nitesh Gupta
ANNEXURE NO.2

BREAK-EVEN ANALYSIS
Years
0 1 2 3 4 5 6
A. Receipts 150.00 180.00 216.00 259.20 311.04 373.25 447.90

B. Variable cost: 139.37 167.50 199.43 237.73 283.68 338.77 404.83

D. Fixed costs:
Depreciation 1.73 1.48 1.27 1.09 0.93 0.80 0.69
Interest on Term Loan 1.45 1.73 1.48 1.22 0.93 0.00 0.00
Administration Expenses 3.50 3.85 4.18 4.53 4.99 5.48 6.03
6.67 7.06 6.93 6.84 6.85 6.28 6.72

E. Contribution [ A - B ] 10.64 12.50 16.58 21.47 27.36 34.48 43.07

F. [Link] [ E/A x 100 ] 7.09 6.95 7.67 8.28 8.80 9.24 9.62

G. Break - even [ Value ] 94.09 101.59 90.27 82.54 77.84 68.01 69.86
[ D / F x 100 ]

H. Cash Break Even 69.76 80.32 73.78 69.44 67.26 59.37 62.73
[ Without Depreciation]
Mr. Nitesh Gupta
ANNEXURE NO.3

DEBT SERVICE COVERAGE RATIO :

Operating Years
0 1 2 3 4 5 6
A. SOURCES :
Profit after tax 5.43 6.41 9.51 12.88 16.89 21.74 27.60
Depreciation 1.73 1.48 1.27 1.09 0.93 0.80 0.69
Interest on term loan 1.45 1.73 1.48 1.22 0.93 0.62 0.28
TOTAL OF ' A ' 8.60 9.62 12.26 15.18 18.75 23.16 28.57

B DEBT :
Term loan installment 2.06 2.95 3.19 3.46 3.74 4.05 4.39
Interest on Term Loan 1.45 1.73 1.48 1.22 0.93 0.62 0.28

TOTAL OF ' B ' 3.51 4.68 4.68 4.68 4.68 4.68 4.68

C Debt Service Coverage Ratio

DSCR [A/B] 2.45 2.06 2.62 3.25 4.01 4.95 6.11

D Average DSCR 3.64

Mr. Nitesh Gupta
ANNEXURE NO.4

ANALYSIS OF RETURN ON INVESTMENT :

RETURN ON INVESTMENT :

OPERTING YEARS
PARTICULARS
0 1 2 3 4 5 6
Profit before tax 5.69 6.92 10.91 15.72 21.45 28.37 36.75

Depreciation 1.73 1.48 1.27 1.09 0.93 0.80 0.69

Interest on Term Loan 1.45 1.73 1.48 1.22 0.93 0.62 0.28

8.86 10.13 13.66 18.02 23.31 29.79 37.72

# Average Return 20.21

# Capital Employed 32.50

# Return on Investment 62.20 %