PROJECT SAMPLE

REPORT REPORT
Proprietor Name - Mr. Rahul Kumar
Business Name - Sample Report

Prepared By :

SHARDA
ASSOCIATES
[Link]
+91 94250 08997 | +91 89899 77769
M/s Sample Project Report
Financial Year 2020-21

Contents of the Project Report

Sr. No. Particulars Page No.

1 Contents of the Project Report 1

2 Project Synopsis 2
3 Promoter Details 4
4 Introduction about the Project 5
5 Scope of the Project 6
6 Products & Services Offered 7
7 Market Potential & Strategy of the Project 8
8 Project Feasibility Graphs 9
9 Cost of the Project 10
10 Means of Finance 11
11 Working Capital Computation 12
12 Projected Revenue / Sales 13
13 Projected Salaries & Wages 14
14 Projected Depreciation 15
15 Projected Monthly Expenses 16
16 Repayment of Term Loan 17
17 Projected Profitability Statement 19
18 Projected Cash Flow Statement 21
19 Projected Balance Sheet 22
20 Debt-Service Coverage Ratio 24
21 Current Ratio 25
22 Ratio Analysis 26
23 Break-Even Point 28
24 Assumptions 30
25 Conclusion 31
M/s Sample Project Report
Financial Year 2020-21

Project Synopsis

Sr. No. Particulars Details

1 Name of the Concern : M/s Sample Project Report

2 Constitution : Sole Proprietorship Concern
361, Vithalbhai Patel Road, Girgaon
3 Address of the Unit :
Mumbai, Maharashtra, 400004
4 Name of the Owner(s) : Mr. Rahul Kumar
5 Contact Details : +91 - 11111 11111
: Rahulsharma154@[Link]
5 Status : Entrepreneur
6 Total Space Required : 3000 Sqft.
7 Total Space Available : 3200 Sqft.
8 Receipts/ Revenue (1st year onwards) : 20,00,000
9 Financial Year : 2020 - 21
10 Manpower Requirement Number Annual Wages
Supervisor : 1 96000
Skilled Worker : 1 84000
Semi- Skilled Worker : 1 72000
Security Guard : 1 72000
4 324000
Benefits @ 10% 32400
TOTAL 356400

11 Cost of Project : Particulars Amount

Land (Rented Premises) 0
Building 500000
Plant & Machinery 1100000
Furniture & Fittings 500000
Working Capital Required 600000
TOTAL 2700000
 12 Means of Finance : Particulars Amount
Promoter's Contribution 675000
Bank Loan 2025000
TOTAL 2700000

13 Debt Service Coverage Ratio : 1.86 (5 Years Average)

14 Current Ratio : 2.58 (5 Years Average)
15 Breakeven Point : 69.49% In the II year
16 Monatorium Period : 12 Months
Prime Minister Employment Generation
17 Guiding Scheme :
Programme
18 Projections/ Reypayment Period : 5 Years

M/s Sample Project Report

Date : 22 September 2020 Mr. Rahul Kumar

M/s Sample Project Report
Financial Year 2020-21
INTRODUCTION

The Indian food processing industry accounts for 32 per cent of the country’s total
food market, 14 per cent of manufacturing GDP, 13 per cent of India’s exports and
six per cent of total industrial investment.
The Indian food industry is poised for huge growth, increasing its contribution in
world food trade every year. In India, the food sector has emerged as a high -profit
sector on the back of the scope it offers for value addition, particularly with the food
processing industry getting recognized as a high-priority area.
Food processing industry is of enormous significance for India's development
because of the vital linkages and synergies that it promotes between the two pillars
of our economy, industry and agriculture. Fast growth in the food processing sector
and progressive improvement in the value addition chain are also of great importance
for achieving favorable terms of trade for Indian agriculture both in the domestic
and international markets. Even more important is the crucial contribution that an
efficient food processing industry could make in the nation's food security. The
simple fact that the post-harvest losses are about 25 to 30 per cent in our country
should serve as an eye opener for all of us. Even marginal reductions in these losses
are bound to give us great relief on the food security front as well as improve the
income levels of the farmer.
The Indian food industry is poised for huge growth, increasing its contribution in
world food trade every year. In India, the food sector has emerged as a high -profit
sector on the back of the scope it offers for value addition, particularly with the food
processing industry getting recognized as a high-priority area.
M/s Sample Project Report
Financial Year 2020-21

Food processing includes the methods and techniques used to transform raw ingredients
into food for human consumption. Food processing takes clean, harvested or slaughtered
and butchered components and uses them to produce marketable food products. There are
several different ways in which food can be produced.
Food processing involves any type of value addition to agricultural or horticultural
produce and the products that there follow. The grading, processing and packaging
of foods all fall under this umbrella. The Food Processing Industry sector in India is
a global contender in terms of production, consumption, exports and growth
prospects.
M/s Sample Project Report
Financial Year 2020-21
SCOPE OF PROJECT

In early November 2017, the Union Ministry of Food Processing Industries (MOFPI)
successfully organized the World Food India 2017 in New Delhi. The 3-day long event
showcased India’s potential to become the ‘World Food Factory’ to the participating
countries and the leading multinational corporations like Pepsi Co, Nestle, Cargill, etc.
During the event, business worth USD 11.25 Billion with 50 MOUs has been transacted
between the MOFPI and private sector. Significantly, various State governments also
signed an additional USD 2.5 Billion worth MOUs at this event.

As per an estimate, India’s current food processing industry is estimated at USD 130
Billion and expected to attract huge domestic and foreign investment. Some of the key
factors which are likely to increase the demand for processed food and consequently the
food processing industry in the coming years are –

• India is a country of over 1.25 billion population. With rising middle class having a
considerable disposable income, the domestic market offers 1.25 billion opportunities for
the sector.

• Due to rapid urbanization, food habits are changing rapidly towards value-added foods.
The change is accentuated by the fact that over 65% of India’s population is 35 or under,
who are inclined to have processed food.

• As per an estimate, around 40 percent of total food production is wasted due to the
inadequate facilities for transportation, storage, processing and marketing. If these
deficiencies are addressed, there is a huge scope for the development of the sector.
M/s Sample Project Report
Financial Year 2020-21

The scope of food processing is increasing in India, Due to following reasons, the trend for
is highly expected to rise for about 10-12 years in India.

• Growing populations and their vast demand of food

• Changing lifestyle patterns

• Access to all branded food materials even at village level

• Government policies like, ‘Make in India’, ‘Startup India’

• Increase in consumers purchasing level

The food industry is a complex, global collective of diverse businesses that supplies most
of the food consumed by the world's population. Only subsistence farmers, those who
survive on what they grow, and hunter-gatherers can be considered outside the scope of the
modern food industry.
M/s Sample Project Report
Financial Year 2020-21
PRODUCT & SERVICES OFFERED

Mr. Rahul Kumar is willing to produce all major snacks which have high demand in the market. This will ensure that the
industry will survive at all season and thus this industry have exceptional chances to grow. Products that will be offered are:

Further any product with high demand could be included for production as and when required.
M/s Sample Project Report
Financial Year 2020-21

MARKET POTENTIAL & STRATEGY OF THE PROJECT

Marketing, in an agricultural context, has traditionally referred to activities that take place
from the farm gate to the final consumer. Business firms think of marketing differently. To
them, it relates to activities that influence sales of their products. Marketing strategies used
by firms in the food industry use this concept of marketing. Marketing strategies position
products so these firms can win the battle for the food dollar. The marketing strategies used
by food firms affect many people. They influence the price, volume, and mix of
commodities sold by farmers as well as the return and risk on capital provided by investors.
They influence the price, quality, and variety of products available to consumers. The
strategies available to firms marketing food are different from those farmers can use, but
not greatly different from those that firms marketing nonfood products use. Firms have
many goals, one of which is growth. Growth requires an adequate financial return in order
to be pursued on a sustained basis, but it also influences financial return. Marketing
strategies are developed to achieve the growth objective, which is a major concern of firms
in the food industry.
M/s Sample Project Report
Financial Year 2020-21
Marketing Strategies:
A firm must answer the question, "What business should I be in?" The business of a firm
is defined by the scope of its products and markets and by the product and market segments
it serves. Scope refers to the customers to be served and the functions to be performed.
Segments are based on differences in customer needs and ways of satisfying those needs.
The following types of marketing strategies influence sales growth in products and markets
selected by the firm. These strategies are highly interrelated, and consistency in their use
is essential to achieve growth objectives.
A strategic plan with clearly defined operational goals and procedures facilitates effective
decision-making, especially where plant design and capital expenditures are involved.
The plan should address future growth objectives, which may include expanding the
business, introducing new products, locations and market segments.
Food manufacturers may also find it valuable to conduct feasibility studies focused on
asset optimization and to maximize the income-generating potential and productivity of
existing assets. By analyzing depreciation value, maintenance schedules, sanitary design
and operational history (including downtime) of each piece of equipment, a plant can
make the necessary process changes to increase production to meet strategic plan goals.
M/s Sample Project Report
Financial Year 2020-21

Promoter Details
Mr. Rahul Kumar son of Mr. Rajiv Kumar aged 33 years already owns land for the
purpose of and he also possess knowledge & experience in various food manufacturing
industry activities. He is resident of 28, Vithalbhai Patel Road, Girgaon, Mumbai,
Maharashtra, 400004. He is constructing a Food Manufacturing Industry at 361,
Vithalbhai Patel Road, Girgaon, Mumbai, Maharashtra, 400004.

The promoter is very well-known among other industrialists. The surrounding areas and
possess fair amount of goodwill in the area. He has adequate amount of required
experience in the same line of business for the success of the project. The promoter and
his family have been regular in their banking obligations and have a good CIBIL rating
as a proof for the same.

Brief Details

Name : Mr. Rahul Kumar s/o Mr. Rajiv Kumar

361, Vithalbhai Patel Road, Girgaon, Mumbai,
Address :
Maharashtra, 400004
Phone Number : +91 - 11111 11111
E-mail ID (if any) : Rahulsharma154@[Link]
Aadhaar Number : 1234 1234 1234
PAN : XXXXX0000X
Gender : Male
Qualification : B. Tech
Date of Birth : 12-01-1989

M/s Sample Project Report

Mr. Rahul Kumar

M/s Sample Project Report
Financial Year 2020-21

Project Feasibility Graphs

EXPENSES BREAKUP REVENUE v/s EXPENSES (in

Lacs)
3500000.00

3000000.00

3%
24% 2500000.00
33%

2000000.00

40% 1500000.00

1000000.00

500000.00

Wages Depreciation
0.00
1 2 3 4 5
Raw Material Other Expenses
Revenue Expenses

DEBT-SERVICE COVERAGE CURRENT RATIO

RATIO 3

1.798613803 2.5

1.456463911 2
CURRENT RATIO

1.180846112
1.5
0.953763198

0.762404459
1

0.5

0
1 2 3 4 5 1 2 3 4 5

M/s Sample Project Report

Mr. Rahul Kumar

M/s Sample Project Report
Financial Year 2020-21

Cost of the Project

Sr. No. Particulars Amount

1 Land (Rented Premises) -

2 Building
Office 1,00,000
Shed 3,00,000
Storage 50,000
Others 50,000 5,00,000

3 Plant & Machinery

Machine 1 5,00,000
Machine 2 5,00,000
Utility Tools 50,000
Others 50,000 11,00,000

4 Furniture & Fittings

Office Furniture 3,00,000
Other Furniture & Fixtures 2,00,000 5,00,000

5 Working Capital Required 6,00,000

Total 27,00,000

M/s Sample Project Report

Mr. Rahul Kumar

M/s Sample Project Report
Financial Year 2020-21

Means of Finance
Sr. No. Particulars Amount

1 Towards Setting-up of Business

a. Promoter's Contribution 25.00% 5,25,000
b. Term Loan from Bank 75.00% 15,75,000
Total 21,00,000

2 Towards Working Capital

a. Promoter's Contribution 25.00% 1,50,000
b. Working Capital Loan from Bank 75.00% 4,50,000
Total 6,00,000

Total 27,00,000

M/s Sample Project Report

Mr. Rahul Kumar

M/s Sample Project Report
Financial Year 2020-21

Working Capital Computation

Sr. No. Particulars Amount

Expenses to be incurred during the year

1 Salaries & Wages 3,56,400
2 Depreciation 2,65,000
3 Interest on Term Loan 1,74,825
4 Interest on Working Capital 54,000
5 Other Annual Expenses 8,89,000
Total Annual Expenses 17,39,225

Total Working Capital Required 6,00,000

Own Contribution 25.00% 1,50,000

Working Capital Loan 75.00% 4,50,000

M/s Sample Project Report

Mr. Rahul Kumar

M/s Sample Project Report
Financial Year 2020-21

Projected Revenue / Sales

Sr. No. Particulars 2021-22 2022-23 2023-24 2024-25 2025-26

1 Expected Sales (per month in units) 5,000 5,500 6,050 6,655 7,321

2 Sales (per year) 60,000 66,000 72,600 79,860 87,846

3 Price per Commodity (Rs.) 30.00 30.00 30.00 30.00 30.00

4 Revenue per Year 18,00,000 19,80,000 21,78,000 23,95,800 26,35,380

5 Other Income (custom orders) 2,00,000 2,20,000 2,42,000 2,66,200 2,92,820

6 Total Revenue Receipt 20,00,000 22,00,000 24,20,000 26,62,000 29,28,200

* It is assumed that Sales will increase by 10 % each year

M/s Sample Project Report

Mr. Rahul Kumar

M/s Sample Project Report
Financial Year 2020-21

Projected Salaries & Wages

Wages per Annual Wages
[Link]. Type of Worker No. of Workers
month & Salaries

1 Supervisor 1 8,000 96,000

2 Skilled Worker 1 7,000 84,000
3 Semi- Skilled Worker 1 6,000 72,000
4 Security Guard 1 6,000 72,000

Total 4 3,24,000

Add: Fringe Benefits @ 10% 32,400

Total Wages during the year 3,56,400

M/s Sample Project Report

Mr. Rahul Kumar

M/s Sample Project Report
Financial Year 2020-21

Projected Depreciation
Sr. No. Particulars Rate 2021-22 2022-23 2023-24 2024-25 2025-26

A. Gross Fixed Assets 21,00,000 13,85,000 11,99,750 10,40,038 9,02,257

1 Land (Rented Premises) - - - - -
2 Building 5,00,000 4,50,000 4,05,000 3,64,500 3,28,050
3 Plant & Machinery 11,00,000 9,35,000 7,94,750 6,75,538 5,74,207
4 Furniture & Fittings 5,00,000 4,50,000 4,05,000 3,64,500 3,28,050
B. Depreciation 2,65,000 1,85,250 1,59,713 1,37,781 1,18,936
1 Land (Rented Premises) 0.00% - - - - -
2 Building 10.00% 50,000 45,000 40,500 36,450 32,805
3 Plant & Machinery 15.00% 1,65,000 1,40,250 1,19,213 1,01,331 86,131
4 Furniture & Fittings 10.00% 50,000 45,000 40,500 36,450 32,805
C. Cumulative Depreciation 2,65,000 4,00,250 5,59,963 6,97,743 8,16,679
1 Land (Rented Premises) - - - - -
2 Building 50,000 95,000 1,35,500 1,71,950 2,04,755
3 Plant & Machinery 1,65,000 3,05,250 4,24,463 5,25,793 6,11,924
4 Furniture & Fittings 50,000 95,000 1,35,500 1,71,950 2,04,755
D. Net Assets 18,35,000 16,04,750 14,04,538 12,30,307 10,78,566
1 Land (Rented Premises) - - - - -
2 Building 4,50,000 4,05,000 3,64,500 3,28,050 2,95,245
3 Plant & Machinery 9,35,000 7,94,750 6,75,538 5,74,207 4,88,076
4 Furniture & Fittings 4,50,000 4,05,000 3,64,500 3,28,050 2,95,245

M/s Sample Project Report

Mr. Rahul Kumar

M/s Sample Project Report
Financial Year 2020-21

Projected Monthly Expenses

Sr. No. Particulars 2021-22 2022-23 2023-24 2024-25 2025-26

A Direct Expenses
1 Salaries & Wages 3,56,400 3,74,220 3,92,931 4,12,578 4,33,206
2 Depreciation 2,65,000 1,85,250 1,59,713 1,37,781 1,18,936
3 Raw Materials Expense 7,20,000 7,56,000 7,93,800 8,33,490 8,75,165
4 Annual Rent 1,00,000 1,05,000 1,10,250 1,15,763 1,21,551
5 Electricity Expenses 36,000 37,800 39,690 41,675 43,758
6 Repairs & Maintenance 10,000 10,500 11,025 11,576 12,155
Total A 14,87,400 14,68,770 15,07,409 15,52,861 16,04,771

B Indirect Expenses
1 Interest on Term Loan 1,74,825 1,37,025 99,225 61,425 23,625
2 Interest on Working Capital 54,000 54,000 54,000 54,000 54,000
3 Insurance 8,000 8,400 8,820 9,261 9,724
4 Office Expenses & Utilities 5,000 5,250 5,513 5,788 6,078
5 Administrative Expenses 5,000 5,250 5,513 5,788 6,078
6 Other Expenses 5,000 5,250 5,513 5,788 6,078
Total B 2,51,825 2,15,175 1,78,583 1,42,050 1,05,582

Total Expenses (A+B) 17,39,225 16,83,945 16,85,991 16,94,912 17,10,353

* It is assumed that Relevant Expenses will increase by 5% each year

M/s Sample Project Report

Mr. Rahul Kumar

M/s Sample Project Report
Financial Year 2020-21

Repayment of Term Loan

Term Loan 15,75,000
Interest Rate 12% per Annum
Financial Year 2021-22

Sr. No. Years / Principal Principal Principal Interest Total

Quarters Opening Repayment Closing Balance Liability Repayment
Balance

1 2020-21
Q1 15,75,000 - 15,75,000 47,250 47,250
Q2 15,75,000 - 15,75,000 47,250 47,250
Q3 15,75,000 - 15,75,000 47,250 47,250
Q4 15,75,000 - 15,75,000 47,250 47,250
- 94,500 94,500

2 2022-23
Q1 15,75,000 78,750 14,96,250 47,250 1,26,000
Q2 14,96,250 78,750 14,17,500 44,888 1,23,638
Q3 14,17,500 78,750 13,38,750 42,525 1,21,275
Q4 13,38,750 78,750 12,60,000 40,163 1,18,913
3,15,000 1,74,825 4,89,825

3 2023-24
Q1 12,60,000 78,750 11,81,250 37,800 1,16,550
Q2 11,81,250 78,750 11,02,500 35,438 1,14,188
 Q3 11,02,500 78,750 10,23,750 33,075 1,11,825
Q4 10,23,750 78,750 9,45,000 30,713 1,09,463
3,15,000 1,37,025 4,52,025

4 2024-25
Q1 9,45,000 78,750 8,66,250 28,350 1,07,100
Q2 8,66,250 78,750 7,87,500 25,988 1,04,738
Q3 7,87,500 78,750 7,08,750 23,625 1,02,375
Q4 7,08,750 78,750 6,30,000 21,263 1,00,013
3,15,000 99,225 4,14,225

5 2025-26
Q1 6,30,000 78,750 5,51,250 18,900 97,650
Q2 5,51,250 78,750 4,72,500 16,538 95,288
Q3 4,72,500 78,750 3,93,750 14,175 92,925
Q4 3,93,750 78,750 3,15,000 11,813 90,563
3,15,000 61,425 3,76,425

6 2026-27
Q1 3,15,000 78,750 2,36,250 9,450 88,200
Q2 2,36,250 78,750 1,57,500 7,088 85,838
Q3 1,57,500 78,750 78,750 4,725 83,475
Q4 78,750 78,750 - 2,363 81,113
3,15,000 23,625 3,38,625

M/s Sample Project Report

Mr. Rahul Kumar

M/s Sample Project Report
Financial Year 2020-21

Projected Cash Flow Statement

Sr. No. Particulars 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26

A. Sources
Net Profit before Interest & Taxes - 4,89,600 7,07,080 8,87,234 10,82,513 12,95,472
Promoters' Capital 6,75,000 - - - - -
Bank Term Loan 15,75,000 - - - - -
Working Capital Loan 4,50,000 - - - - -
Depreciation - 2,65,000 1,85,250 1,59,713 1,37,781 1,18,936
Sundry Creditors - 1,00,000 1,00,000 - - -
Total 27,00,000 8,54,600 9,92,330 10,46,947 12,20,294 14,14,409

B. Uses
Fixed Assets 21,00,000 - - - - -
Repayment of Term Loan - 3,15,000 3,15,000 3,15,000 3,15,000 3,15,000
Interest of Term Loan - 1,74,825 1,37,025 99,225 61,425 23,625
Interest on Working Capital - 54,000 54,000 54,000 54,000 54,000
Income-tax - 78,233 1,54,817 2,20,203 2,90,126 3,65,354
Sundry Debtors - 80,000 80,000 - - -
Total 21,00,000 7,02,058 7,40,842 6,88,428 7,20,551 7,57,979

Opening Cash Balance - 6,00,000 7,52,543 10,04,031 13,62,550 18,62,292

Surplus during the year 6,00,000 1,52,543 2,51,489 3,58,519 4,99,742 6,56,429
Closing Cash Balance 6,00,000 7,52,543 10,04,031 13,62,550 18,62,292 25,18,721

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Mr. Rahul Kumar

M/s Sample Project Report
Financial Year 2020-21

Projected Profitability Statement

Sr. No. Particulars 2021-22 2022-23 2023-24 2024-25 2025-26

Expected Sales (per month in units) 60,000 66,000 72,600 79,860 87,846
Sales (per year) 7,20,000 7,92,000 8,71,200 9,58,320 10,54,152
Price per Commodity (Rs.) 30.00 30.00 30.00 30.00 30.00

Revenue per Year 18,00,000 19,80,000 21,78,000 23,95,800 26,35,380

Other Income (custom orders) 2,00,000 2,20,000 2,42,000 2,66,200 2,92,820
Total Revenue Receipt 20,00,000 22,00,000 24,20,000 26,62,000 29,28,200

Less: Direct Expenses

1 Salaries & Wages 3,56,400 3,74,220 3,92,931 4,12,578 4,33,206
2 Depreciation 2,65,000 1,85,250 1,59,713 1,37,781 1,18,936
3 Raw Materials Expense 7,20,000 7,56,000 7,93,800 8,33,490 8,75,165
4 Annual Rent 1,00,000 1,05,000 1,10,250 1,15,763 1,21,551
5 Electricity Expenses 36,000 37,800 39,690 41,675 43,758
6 Repairs & Maintenance 10,000 10,500 11,025 11,576 12,155
Total 14,87,400 14,68,770 15,07,409 15,52,861 16,04,771

Gross Profit 5,12,600 7,31,230 9,12,592 11,09,139 13,23,429

Less: Indirect Expenses

1 Interest on Term Loan 1,74,825 1,37,025 99,225 61,425 23,625
2 Interest on Working Capital 54,000 54,000 54,000 54,000 54,000
3 Insurance 8,000 8,400 8,820 9,261 9,724
4 Office Expenses & Utilities 5,000 5,250 5,513 5,788 6,078
5 Administrative Expenses 5,000 5,250 5,513 5,788 6,078
6 Other Expenses 5,000 5,250 5,513 5,788 6,078
Total 2,51,825 2,15,175 1,78,583 1,42,050 1,05,582

Net Profit Before Tax 2,60,775 5,16,055 7,34,009 9,67,088 12,17,847

Less: Income Tax @ 30% 78,233 1,54,817 2,20,203 2,90,126 3,65,354
Net Profit After Tax 1,82,543 3,61,239 5,13,806 6,76,962 8,52,493

Balance Trf. To Balance Sheet 1,82,543 3,61,239 5,13,806 6,76,962 8,52,493

Cumulative Balance Trf. To Balance Sheet 1,82,543 5,43,781 10,57,587 17,34,549 25,87,042

Cash Profit (NPAT + Dep.) 4,47,543 5,46,489 6,73,519 8,14,742 9,71,429

M/s Sample Project Report

Mr. Rahul Kumar

M/s Sample Project Report
Financial Year 2020-21

Projected Balance Sheet

Sr. No. Particulars 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26

Liabilities

Capital 6,75,000 6,75,000 6,75,000 6,75,000 6,75,000 6,75,000

Reserves & Surplus - 1,82,543 5,43,781 10,57,587 17,34,549 25,87,042

Bank Loan - Term Loan 15,75,000 12,60,000 9,45,000 6,30,000 3,15,000 -

Bank Loan - Working Capital 4,50,000 4,50,000 4,50,000 4,50,000 4,50,000 4,50,000

Sundry creditors - 1,00,000 2,00,000 2,00,000 2,00,000 2,00,000

Total 27,00,000 26,67,543 28,13,781 30,12,587 33,74,549 39,12,042

Assets

Fixed Assets 21,00,000 21,00,000 18,35,000 16,49,750 14,90,038 13,52,257

Less: Depreciation - 2,65,000 1,85,250 1,59,713 1,37,781 1,18,936

Net fixed assets 21,00,000 18,35,000 16,49,750 14,90,038 13,52,257 12,33,321

Sundry Debtors - 80,000 1,60,000 1,60,000 1,60,000 1,60,000

Cash & Cash Equivalents 6,00,000 7,52,543 10,04,031 13,62,550 18,62,292 25,18,721

Total 27,00,000 26,67,543 28,13,781 30,12,587 33,74,549 39,12,042

M/s Sample Project Report

Mr. Rahul Kumar

M/s Sample Project Report
Financial Year 2020-21

Debt-Service Coverage Ratio

Sr. No. Particulars 2021-22 2022-23 2023-24 2024-25 2025-26

Net Profit after Tax 1,82,543 3,61,239 5,13,806 6,76,962 8,52,493

Depreciation 2,65,000 1,85,250 1,59,713 1,37,781 1,18,936

Interest on Term Loan 1,74,825 1,37,025 99,225 61,425 23,625

Interest on Working Capital 54,000 54,000 54,000 54,000 54,000

Total - A 6,76,368 7,37,514 8,26,744 9,30,167 10,49,054

Interest on Term Loan 1,74,825 1,37,025 99,225 61,425 23,625

Interest on Working Capital 54,000 54,000 54,000 54,000 54,000

Repayment of Term Loan 3,15,000 3,15,000 3,15,000 3,15,000 3,15,000

Total - B 5,43,825 5,06,025 4,68,225 4,30,425 3,92,625

DSCR (A/B) 1.24 1.46 1.77 2.16 2.67

Average DSCR 1.86

M/s Sample Project Report

Mr. Rahul Kumar

M/s Sample Project Report
Financial Year 2020-21

Current Ratio
Sr. No. Particulars 2021-22 2022-23 2023-24 2024-25 2025-26

Current Assets 8,32,543 11,64,031 15,22,550 20,22,292 26,78,721

Current Liabilities 5,50,000 6,50,000 6,50,000 6,50,000 6,50,000

Current Ratio 1.51 1.79 2.34 3.11 4.12

Average Current Ratio 2.58

M/s Sample Project Report

Mr. Rahul Kumar

M/s Sample Project Report
Financial Year 2020-21

Ratio Analysis

Sr. No. Particulars 2021-22 2022-23 2023-24 2024-25 2025-26 Average Ratios

Sales 20,00,000 22,00,000 24,20,000 26,62,000 29,28,200

Gross Profit 5,12,600 7,31,230 9,12,592 11,09,139 13,23,429
Operating Profit / Profit Before Tax 2,60,775 5,16,055 7,34,009 9,67,088 12,17,847
Net Profit After Tax 1,82,543 3,61,239 5,13,806 6,76,962 8,52,493
Net Worth 8,57,543 12,18,781 17,32,587 24,09,549 32,62,042
Total Debt 17,10,000 13,95,000 10,80,000 7,65,000 4,50,000
Total Outside Liabilities 18,10,000 15,95,000 12,80,000 9,65,000 6,50,000
Total Liabilities 26,67,543 28,13,781 30,12,587 33,74,549 39,12,042
Current Assets 8,32,543 11,64,031 15,22,550 20,22,292 26,78,721
Current Liabilities 5,50,000 6,50,000 6,50,000 6,50,000 6,50,000
Cash Profit 4,47,543 5,46,489 6,73,519 8,14,742 9,71,429
Total Cash Profit 34,53,721

Calculation of Ratios

1 Gross Profit / Sales 25.63% 33.24% 37.71% 41.67% 45.20% 36.69%

2 Operating Profit / Sales Ratio 13.04% 23.46% 30.33% 36.33% 41.59% 28.95%

3 Profit Before Tax / Sales Ratio 13.04% 23.46% 30.33% 36.33% 41.59% 28.95%

4 Net Profit / Sales Ratio 9.13% 16.42% 21.23% 25.43% 29.11% 20.26%
 5 Net Profit / Net Worth Ratio 21.29% 29.64% 29.66% 28.09% 26.13% 26.96%

6 Debt-Equity Ratio 1.99 1.14 0.62 0.32 0.14 0.84

7 Total Outside Liabilities / Total Net Worth 2.11 1.31 0.74 0.40 0.20 0.95

8 Net Worth / Total Liabilities 0.32 0.43 0.58 0.71 0.83 0.58

9 Debt-service Coverage Ratio 1.24 1.46 1.77 2.16 2.67 1.86

10 Current Ratio 1.51 1.79 2.34 3.11 4.12 2.58

M/s Sample Project Report

Mr. Rahul Kumar

M/s Sample Project Report
Financial Year 2020-21

Break-Even Point

Sr. No. Particulars 2021-22 2022-23 2023-24 2024-25 2025-26

Gross Receipts 20,00,000 22,00,000 24,20,000 26,62,000 29,28,200

Less: Variable Expenses

1 Salaries & Wages 3,56,400 3,74,220 3,92,931 4,12,578 4,33,206
2 Raw Materials Expense 7,20,000 7,56,000 7,93,800 8,33,490 8,75,165
3 Electricity Expenses 36,000 37,800 39,690 41,675 43,758
4 Repairs & Maintenance 10,000 10,500 11,025 11,576 12,155
5 Insurance 8,000 8,400 8,820 9,261 9,724
6 Office Expenses & Utilities 5,000 5,250 5,513 5,788 6,078
7 Administrative Expenses 5,000 5,250 5,513 5,788 6,078
8 Other Expenses 5,000 5,250 5,513 5,788 6,078
Total 11,45,400 12,02,670 12,62,804 13,25,944 13,92,241

Contribution 8,54,600 9,97,330 11,57,197 13,36,056 15,35,959

 Less: Fixed Expenses
1 Interest on Term Loan 1,74,825 1,37,025 99,225 61,425 23,625
2 Interest on Working Capital 54,000 54,000 54,000 54,000 54,000
3 Depreciation 2,65,000 1,85,250 1,59,713 1,37,781 1,18,936
4 Annual Rent 1,00,000 1,05,000 1,10,250 1,15,763 1,21,551
Total 5,93,825 4,81,275 4,23,188 3,68,968 3,18,112

Break Even Point (in %) 69.49% 48.26% 36.57% 27.62% 20.71%

M/s Sample Project Report

Mr. Rahul Kumar

M/s Sample Project Report
Financial Year 2020-21

Assumptions
The entire projection is based on the assumption that the sales for 5 years will be

Years 2021-22 2022-23 2023-24 2024-25 2025-26

Sales 60000 66000 72600 79860 87846

Also the total expense for the firm during the projection years will be as follows

Years 2021-22 2022-23 2023-24 2024-25 2025-26

Expenses 1739225 1683945 1685991 1694912 1710353

Rates of Depreciation Is as follows

Particulars Rates
Land (Rented Premises) 0.00%
Building 10.00%
Plant & Machinery 15.00%
Furniture & Fittings 10.00%

The Term loan Repayment for 5 years is calculated at an interest rate of 12% per Annum
The Working Capital loan Repayment for calculated at an interest rate of 12% per Annum
Cost of the land on the basis of current rate
Cost of building is based on current rate
Cost of machinery is based on the quotation submitted by the supplier
Value of raw materials & utility charges as per the current market conditions
All other assumptions are calculated based on the basis of experience of
the promoter and deep study on the working of similar model

This report is created using [Link] . Sharda Associates bears no financial

responsibility on or behalf of any of the authorized signatories.
M/s Sample Project Report
Financial Year 2020-21
CONCLUSION

The agricultural sector is of vital importance for the region. It is undergoing a process of
transition to a market economy, with substantial changes in the social, legal, structural,
productive and supply set-ups, as is the case with all other sectors of the economy. These
changes have been accompanied by a decline in agricultural production for most countries,
and have affected also the national seed supply sectors of the region. The region has had to
face problems of food insecurity and some countries have needed food aid for IDPs and
refugees.
Due to the relatively low demographic pressure projected for the future, the presence of
some favorable types of climates and other positive factors, including a very wide formal
seed supply sector, it should be possible to overcome problems of food insecurity in the
region as a whole, and even to use this region to provide food to other food-deficient
regions. Opportunities must therefore be created to reach these results.
The project as a whole describes the scope and viability of the trading industry and mainly
of the financial, technical and its market potential. When we take a close look at the Debt
Service Coverage Ratio (DSCR), the average DSCR is 1.86, which is at a healthy
proposition & proposes a profitable venture. The Profit and Loss shows a steady growth in
profit throughout the year and the firm has a good Current Ratio (average) of 2.58, this
shows the current assets and current liabilities are managed & balanced well. With
Breakeven point at 69.49% from 2nd year onwards, this business shows positive results.
The project guarantees sufficient fund to repay the loan and also give a good return on
capital investment. When analyzing the social- economic impact, this project is able to
generate an employment of 5-20 (in the near future). Thus, more cyclic employment and
livelihood generation, and in all ways, we can conclude the project is technically and
socially viable and commercially sound too.