ON

PMEGP

SHAWL EMBROIDERY

LOCATION OF UNIT:ROSHANABAD KANIHUM

(Promoter)
SURIYA MANZOOR
R/O Roshanabad Kanihuma

PREPARED BY:
O.N.S & ASSOCIATES,
Tax Consultants,AND Chartered Accountants
2ND FLOOR SULTAN SHOP COMPLEX,
BEEHAMA, GANDERBAL
TELL: - 9682687797
REG:060007334
 DECLERATION

This is to certify that this DPR of SHAWL EMBROIDERY has been prepared by our company strictly
as per the information provided by the promoter.

PREPARED BY:
O.N.S & ASSOCIATES,
Tax Consultants,AND Chartered Accountants
2ND FLOOR SULTAN SHOP COMPLEX,
BEEHAMA, GANDERBAL
TELL: - 9682687797
REG:060007334
 PROJECT COST SUMMARY & MEANS OF FINANCE

PROJECT COST SUMMARY Amount In Rs. Amount In Lacs

Capital Expenditure/Fixed Assets 2,00,000.00 2.00

Working Capital/Current Assets 3,00,000.00 3.00

TOTAL 5,00,000.00 5.00

Promoters Contribution/seed cap. (10%) 50,000.00 0.50

Term Loan/Bank Finance (90%) 1,80,000.00 1.80

Working Capital Loan (90%) 2,70,000.00 2.70

TOTAL 5,00,000.00 5.00

Promoters Contribution/seed cap. (10%) 50,000.00 0.50

Subsidy From Govt 1,00,000.00 1.00
Bank Finance (90%) 4,50,000.00 4.50
Interest Subvention From Govt. 5%
Assets. Amount In Lacs

1 Matting 40,000 0.40

Inverter With Battery Transformer Wire & Solar

2 Pannel 90,000 0.90
-
3 Steel Locker 2 Nos @20000 40,000 0.40
-
Total 1,70,000 1.70

Furniture & Fixture

[Link] Description Amount in Rs. in Lacs

1 Misc Furniture & Fixture . 20,000 0.20

Total 20,000 0.20

Preoperative/Preliminary Expenses Amount in Rs. in Lcs.

1 Legal & Consultancy Charges 4,000 0.04

2 Travelling,Printing Etc. 2,000 0.02

3 Project Report & Other Legal Formalities 3,000 0.03

4 Misc. Expences 1,000 0.01

Total 10,000 0.10

Subsidy Amount shall be 25% of the total project cost max to the tune of Rs 1. Lac For Males &
30% for Females & Persons with Disabilities.

Loan Structure will be changed after the dissbursment of first subsidy instalment in subsidy
reserve fund .No interest would be charge on the loan disbursed for the corresponding amout
in the subsidy reserve fund
Important ratios

Ratio Value

BEP 0.84
NetProfit Ratio (Avg) 0.05

ROI (Avg) 0.20

Promoter contribution/Seed Capital 0.50 Lacs

Bank Finance 1.80 Lacs
Working capital loan 2.70 Lacs
Pay Back Period 5 Years Approx ( See Annexure XI )
Break Even Point 0.84 ( See Annexure XII )
Debt Service Coverage Ratio 2.69 :1 ( See Annexure XIII)
ROI 0.20
Net Profit Ratio 0.05
No of Employees 2
 Current Liabilities

Operating Years (Amount In Lacs)

Particulars
1st 2nd 3rd 4th 5th

[Link] 0.22 0.24 0.28 0.35 0.43

Sundry Creditors 0.83 1.20 1.96 2.29 2.99

1.05 1.44 2.24 2.64 3.42

Current Assets

Operating Years (Amount In Lacs)

Particulars
DAYS 1st 2nd 3rd 4th 5th

Closing Stock 18 1.21 1.32 1.54 1.66 1.88

Debtors 40 2.84 3.12 3.69 3.98 4.54

4.05 4.44 5.24 5.64 6.43

Annexure IX

WORKING CAPITAL REQUIRMENT

Operating Years (Amount In Lacs)

Particulars
1st 2nd 3rd 4th 5th

Total Current Assets 4.05 4.44 5.24 5.64 6.43

Total Current Liability 1.05 1.44 2.24 2.64 3.42

Net Current Assets 3.00 3.00 3.00 3.00 3.00

Less: Margin(5 %) 0.30 0.30 0.30 0.30 0.30

WCL 2.70 2.70 2.70 2.70 2.70

Net WCL 3.00 3.00 3.00 3.00 3.00
 PROFITABILITY STATEMENT

Operating Years Amount : Rs. in Lacs

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

Capacity Utilisation 50% 55% 65% 70% 80% 80% 85%

Sales Realization 21.30 23.43 27.69 29.82 34.08 34.08 36.21

Expenditure
1.06
Purchases W/C 18.00 19.80 23.40 25.20 28.80 28.80 (1.06)
Salary & wages 1.98 2.08 2.18 2.29 2.41 2.53 2.65
Utilities 0.06 0.07 0.07 0.08 0.09 0.10 0.11
Rent Charges - - - - - - -
Repairs of P&M 0.05 0.06 0.07 0.08 0.10 0.11 0.12
Advertisement Expenses 0.05 0.03 0.01 - - - -
Administrative expenses 0.05 0.06 0.10 0.15 0.20 0.50 0.75
Misc. expenses 0.05 0.06 0.06 0.07 0.07 0.20 0.35

Total 20.24 22.15 25.90 27.87 31.67 32.23 2.92

Gross profit 1.06 1.29 1.79 1.95 2.41 1.85 33.29

Financial expenses
Interest on term loan 0.22 0.18 0.14 0.10 0.05 (0.00) (0.06)
Interest On Working capital loan 0.34 0.34 0.34 0.34 0.34 0.34 0.34
Depreciation (SLM) 0.19 0.19 0.19 0.19 0.19 0.19 0.19
Preliminary expenses written-off 0.02 0.02 0.02 0.02 0.02 - -

Total 0.76 0.73 0.69 0.65 0.60 0.53 0.47

Profit before tax 0.30 0.56 1.10 1.30 1.81 1.32 32.82

Taxation - - - - - - -

Profit after tax 0.30 0.56 1.10 1.30 1.81 1.32 32.82

Average Net Profit 1.01

Drawings 0.15 0.28 0.55 0.65 0.91 0.66 16.41

 PROJECTED BALANCE SHEET

Particulars Base Year 1st 2nd 3rd 4th 5th 6th 7th

Liabilities

Capital 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50

Reserves & Surplus 0.00 0.15 0.43 0.98 1.63 2.53 3.19 19.61
Term Loan 1.80 1.52 1.20 0.84 0.45 0.00 -0.50 -1.06
Working Capital loan 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70
Current Liabilities 0.00 1.05 1.44 2.24 2.64 3.42 3.77 4.14
Expenses Payable 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total 5.00 5.91 6.27 7.26 7.91 9.16 9.66 25.89

Assets

Gross Block 1.90 1.90 1.71 1.52 1.33 1.14 0.95 0.76
Depreciation 0.00 0.19 0.19 0.19 0.19 0.19 0.19 0.19

Net Block 1.90 1.71 1.52 1.33 1.14 0.95 0.76 0.57

Current Assets 3.00 4.05 4.44 5.24 5.64 6.43 7.07 7.78
Pre-operative/Preliminary 0.10 0.08 0.06 0.04 0.02 0.00 0.00 0.00
Expenses
Cash and Bank balance 0.00 0.08 0.24 0.65 1.12 1.78 1.83 17.54

Total 5.00 5.91 6.27 7.26 7.91 9.16 9.66 25.89

0.00 0.00 0.00 0.00 0.00
 PROJECTED CASH FLOW STATEMENT

Particulars Base Year 1st 2nd 3rd 4th 5th 6th 7th

A Cash Flows from Operating Activities

. Net Profit as per P&L Account - 0.30 0.56 1.10 1.30 1.81 1.32 32.82
. Depreciation - 0.19 0.19 0.19 0.19 0.19 0.19 0.19
. Interest on Term Loan - 0.22 0.18 0.14 0.10 0.05 (0.00) (0.06)
. Changes in Current Liabilities - 1.05 0.39 0.80 0.40 0.79 0.34 0.38
. Changes in Current Assets (3.10) (1.05) (0.40) (0.79) (0.40) (0.79) (0.64) (0.71)
. Changes in Expenses payable - - - - - - - -
Pre-operative Expenses written off - 0.02 0.02 0.02 0.02 0.02 - -
Increase/Decrease in Working Capital
Loan - - - - - - - -
. Taxes Paid during the year - - - - - - - -

Cash Flows from Operating Activities

(A) (3.10) 0.73 0.94 1.46 1.61 2.07 1.21 32.62

B Cash flows from Investing Activities (B) (1.90) - - - - - - -

C Cash flows from Financing Activities

.
. Increase/Decrease in shareholders funds
0.50
. Drawings - (0.15) (0.28) (0.55) (0.65) (0.91) (0.66) (16.41)
. Interest on Term loan - (0.22) (0.18) (0.14) (0.10) (0.05) 0.00 0.06
. Increase/Decrease in Term loan 1.80 (0.28) (0.32) (0.36) (0.40) (0.45) (0.50) (0.56)
. Increase/Decrease in Working Cap.
Loan 2.70 - - - - - - -

Cash flows from Financing Activities

(C) 5.00 (0.65) (0.78) (1.05) (1.15) (1.40) (1.16) (16.91)

D Net Increase/ Decrease in Cash during

the year (A+B+C)=D - 0.08 0.16 0.41 0.46 0.66 0.05 15.71
E Cash and Cash Equivalents at the year
Beginning (E) - - 0.08 0.24 0.65 1.12 1.78 1.83
F Cash and Cash Equivalents at the year
0.00 0.08 0.24 0.65 1.12 1.78 1.83 17.54
End (D+E)
 DEPRECIATION CALCULATION

Amount in Lacs

PARTICULARS L&B F&F P & M TOTAL

Cost Price - 0.20 1.70 1.90

Total - 0.20 1.70

Rate of Depreciation 10% 10% 10%

Amount of depreciation 0.00 0.02 0.17 0.19

Total depreciation Per Annum 0.19

 Interest Calculation

Long term borrowings 1.80 Lacs

Rate of interest 12.00%

Repayment schedule 5 Years

Repayment installment

Year Opening Balance Interest Repayment Closing balance

1st 1.80 0.22 0.50 1.52

2nd 1.52 0.18 0.50 1.20

3rd 1.20 0.14 0.50 0.84

4th 0.84 0.10 0.50 0.45

5th 0.45 0.05 0.50 0.00

INTREST ON WORKING CAPITAL LIMIT

Interest
Year Working capital 12.50%
limit
Base 2.70 0.34
1st 2.70 0.34
2nd 2.70 0.34
3rd 2.70 0.34
4th 2.70 0.34
5th 2.70 0.34
6th 2.70 0.34
7th 2.70 0.34
 CapacityUtilisation Chart

Amount in Lacs

Capacity
Year Utilisation Revenue Purchases

Base Year 0% - -

1st 50% 21.30 18.00

2nd 55% 23.43 19.80

3rd 65% 27.69 23.40

` 4th
5th 70%
75% 29.82
31.95 25.20
27.00

5th 80% 34.08 28.80

REPAIRS OF PLANT AND MACHINARY

YEAR P&M REPAIRS %

1 1.71 0.05 2.92
2 1.52 0.06 3.95
3 1.33 0.07 5.26
4 1.14 0.08 7.02
5 0.95 0.10 10.53
6 0.76 0.11 14.47
7 0.57 0.12 21.05
 STATEMENT OF REVENUE AT 100% CAPACITY UTILISATION

[Link] Particulars Revenue Revenue Revenue

(per Day) (per month) (per annum)

1 Revenue from Operations 0.12 3.55 42.60

0.12 3.55 42.60

Annexure -IV
STATEMENT OF WORKING CAPITAL REQUIREMENT AT 100% CAPACITY UTILISATION

[Link] Amount In Lacs

1 Rafal,Dordar,shatoosh Jali,Pashmina Shawls 96,000.00 0.96

2 Salary & Wages 1,98,000.00 1.98
3 Utilities & exp 6,000.00 0.06
3,00,000.00 3.00
 REQUIREMENT OF SALARY AND WAGES PER ANNUM

[Link] Description Salary PM Salary PA Rs Amount

Rs in Lacs
Per
Annum
a) Works staff

1 3 Skilled worker @ Rs. 5,000/month 15,000.00 1,80,000.00 1.80

Total 15,000.00 1,80,000.00 1.80

Add benefits perks and fringe benefits

@ 10 % 1,500.00 18,000.00 0.18

Total 16,500.00 1,98,000.00 1.98

UTILITIES
UTILITY UTILITY PA Amount
[Link] Particulars
PM Rs Rs in Lacs

1 Fuel /Energy other than Electricity 500.00 6,000.00 0.06

Therefore total cost on utilities 500.00 6,000.00 0.06

 Annexure XI

PAYBACK PERIOD
Rs. In Lacs

Project Cost 5.00

YEAR Profit Depreciation Total Cumulative

CFAT

1 0.30 0.19 0.49 0.49

2 0.56 0.19 0.75 1.23

3 1.10 0.19 1.29 2.52

4 1.30 0.19 1.49 4.02

5 1.81 0.19 2.00 6.02

Payback Period
5 Years Approx
 2.48

1.65836

0.199
 ANNEX-XII
BREAK EVEN POINT

STATEMENT OF BREAK EVEN ANALYSIS

(AMOUNT)
Rs. in Lacs
Sales 21.30

Expenses Variable

RM Consumption 18.00

Salary/Wages 60% variable 1.19

Utilities 100% Variable 0.06

Other Variable costs 0.15 19.40

Contribution (Sales- Variable Cost) 1.90

Break Even point % 84.41%

 ANNEX-X III
DEBT SERVICE COVERAGE RATIO

STATEMENT OF COMPUTATION OF DEBT SERVICE COVERAGE

Amount in Lacs

Sources of funds I II III IV V VI VII

Profit during the year 0.30 0.56 1.10 1.30 1.81 1.32 32.82

Depreciation 0.19 0.19 0.19 0.19 0.19 0.19 0.19

Interest on term Loan 0.22 0.18 0.14 0.10 0.05 0.00 -0.06

A 0.70 0.93 1.44 1.59 2.05 1.51 32.95

Application

Installment of term loan 0.50 0.50 0.50 0.50 0.50 0.50 0.50

B 0.50 0.50 0.50 0.50 0.50 0.50 0.50

Debt Service Coverage (A/B) 1.41:1 1.86:1 2.88:1 3.19:1 4.11:1 3.02:1 65.99:1

Average Debt Service Coverage 2.69 :1