DETAILED PROJECT REPORT FOR

M/[Link] PRASAD SINGH

For, Building Manufacturing

Address
S/o Ram Kuber Singh, Vill- Gorpa, PS- Chauri, PO- Dilia,
Dist- Bhojpur, 802201

Prepared by:
Accountnting and Consultancy Services
Accountant & Consultant
Address Line :- North Nawada, Behind of Maharaja College
Mobile : 6201825786
e-mail : Taxhelpservices24x7@[Link]
 M/[Link] PRASAD SINGH

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 INTEREST SCHEDULE 8
4 DEBT COVERAGE RATIO 9
5 ANALYSIS ON RETURN ON INVESTMENT 10
6 ASSUMPTION AND WORKING NOTES 11
M/[Link] PRASAD SINGH
CHAPTER NO. 1
PROJECT AT GLANCE :
1 Name : M/[Link] PRASAD SINGH
2 Address : [Link]:
Address
S/o Ram Kuber Singh, Vill- Gorpa, PS- Chauri, PO- Dilia,
Dist- Bhojpur, 802201

3 Nature of Business : Ration Depot (which is a government-authorized retail point )

4 Constitution : Proprietorship
Proprietor :

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

Particulars Total
Operational Cost 69.90
Furniture & Fittings 2.75
Generator & Office Equipemnts 1.30
Deposits 2.00
Interest during the impl. Period 4.92
Total 80.87

Means of Finance :
Particulars Total
Proprietor Contribution 30.87
Term Loan from Bank 30.00
Cash Credit 20.00
Total 80.87

6 Debt Equity Ratio : 0.97 :1

7 Debt Coverage Ratio : 1.15
8 Gross Profit Ratio : 12.32 First Year Operation.
9 Net Profit Ratio : 8.10 First Year Operation.
10 Employment Potential : 10
11 Return on Investment : 62.09 %

Page 3 of 11
M/[Link] PRASAD SINGH

STATEMENT NO. 1

COST OF THE PROJECT AND MEANS OF FINANCE:

The project cost has been estimated at Rs. 80.869382Lakhs

Brief details of the project cost is given below

Cost of the project : (Rs. In Lakhs)

Particulars Total
Operational Cost 69.90
Furniture & Fittings 2.75
Generator & Office Equipemnts 1.30
Deposits 2.00
Interest during the impl. Period 4.92
Total 80.87

Means of Finance :
Particulars Total
Promoters Contribution 30.87
Term Loan from Bank 30.00
Cash Credit 20.00
Total 80.87
M/[Link] PRASAD SINGH
STATEMENT NO.2
PROJECTIONS AND PROFITABILITY STATEMENT In Lakhs
Operating years
PARTICULARS
1 2 3 4 5 6 7
[Link]:
Income from Trading Activities 100.00 120.00 144.00 172.80 207.36 248.83 298.60
(50 tons*12*1.3) -
(The Quanities Sold are expected to increase by 20% every
year)
100.00 120.00 144.00 172.80 207.36 248.83 298.60
B. EXPENSES:
Material Purchase Cost and Related cost
(After Adjusting closing stock) 60.00 96.00 115.20 138.24 165.89 199.07 238.88
Salary 6.00 6.30 6.62 6.95 7.29 7.66 8.04
Power Charges 3.60 3.78 3.97 4.17 4.38 4.59 4.82
Depreciation 0.30 0.56 0.48 0.41 0.35 0.36 0.38
Cost of Operations 69.90 106.64 126.26 149.76 177.90 186.80 196.14

C. Gross Profit [ A - B ] 30.10 13.36 17.74 23.04 29.46 62.03 102.46

D. Interest on Term Loan 2.73 2.31 1.90 1.49 1.08 0.67 0.26
Interest on Cash Credit 2.19 2.19 2.19 2.19 2.19 2.19 2.19
4.92 4.50 4.09 3.68 3.27 2.86 2.45

E. Selling & Admin. Exp. 1.80 1.89 1.98 2.08 2.19 2.30 2.41

F. Profit before Tax[ C - (D+E) ] 23.38 6.96 11.66 17.28 24.00 56.88 97.60

G. Income Tax 7.01 2.09 3.50 5.18 7.20 17.06 29.28

H. Profit after Tax ( F-G ) 16.37 4.87 8.16 12.09 16.80 39.82 68.32

I. Depreciation added back 0.30 0.56 0.48 0.41 0.35 0.36 0.38

J. Cash Accruals ( H + I ) 16.67 5.44 8.64 12.50 17.15 40.18 68.70

L. Repayment of Term Loan 2.14 4.29 4.29 4.29 57.82 1.49 1.49

M. Net Cash A'ble (J - K)) 14.53 1.15 4.35 8.21 (40.68) 38.69 67.21
M/[Link] PRASAD SINGH
STATEMENT No.3

CASH - FLOW STATEMENT :

Operating Years
PARTICULARS
1 2 3 4 5 6 7
A. Source of Funds :
Profit after Tax 16.37 4.87 8.16 12.09 16.80 39.82 68.32
Depreciation 0.30 0.56 0.48 0.41 0.35 0.36 0.38
Term Loan from Bank 26.78 22.50 18.21 13.92 9.63 5.34 1.06
Cash Credit 20.00 20.00 20.00 20.00 20.00 20.00 20.00
Promoters Contribution 30.87 47.24 52.11 60.27 72.37 89.17 128.98

TOTAL OF ' A ' 94.32 95.17 98.96 106.69 119.15 154.69 218.74

B. Application of Funds :
Furniture & Fittings 2.75 2.54 2.16 1.84 1.56 1.33 1.13
Gen & Office Equipts, 1.30 1.20 1.02 0.87 0.74 0.63 0.53
Deposits 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Repayment of loan 4.29 4.29 4.29 4.29 4.29 4.29 4.29

TOTAL OF ' B ' 10.34 10.03 9.47 8.99 8.59 8.24 7.95

C. Opening Balance - 83.99 169.12 258.61 356.31 466.86 613.31

D. Net surplus ( A - B ) 83.99 85.13 89.49 97.70 110.56 146.45 210.79

E. Closing Balance 83.99 169.12 258.61 356.31 466.86 613.31 824.10

M/[Link] PRASAD SINGH
STATEMENT No.4

BALANCE SHEET
(A HDPE/PP Fabrics Project)
Operating Years
PARTICULARS
1 2 3 4 5 6 7

A. LIABILITIES :
Capital Account 14.00 30.87 30.87 30.87 30.87 30.87 30.87
Reserves & Surplus 16.37 21.24 29.40 41.50 58.30 98.11 166.44
Secured Loan 25.71 21.42 17.14 12.85 - - -

TOTAL 56.08 73.53 77.41 85.22 89.17 128.98 197.31

B. ASSETS :
Fixed Assets 3.75 3.18 2.71 2.30 1.96 1.66 1.41
Current Assets
Cash & Bank 83.99 169.12 258.61 356.31 466.86 613.31 824.10
Deposits 2.00 2.00 2.00 2.00 2.00 2.00 2.00

TOTAL 89.73 174.30 263.31 360.61 470.82 616.97 827.51

M/[Link] PRASAD SINGH
Bangalore

(A HDPE/PP Fabrics Project)

ANNEXURE NO.1

DEPRECIATION SCHEDULE:
WDV at the year end
PARTICULARS
1 2 3 4 5 6 7
1. Furniture & Fittings 2.75 2.54 2.16 1.84 1.56 1.33 1.13
Depreciation @ 15% 0.21 0.38 0.32 0.28 0.23 0.20 0.17
WDV 2.54 2.16 1.84 1.56 1.33 1.13 0.96

4. Genr & Office Equipts 1.30 1.20 1.02 0.87 0.74 0.63 0.53
Depreciation @ 15% 0.10 0.18 0.15 0.13 0.11 0.09 0.08
WDV 1.20 1.02 0.87 0.74 0.63 0.53 0.45

Total Assets
[1+2+3+4] 3.75 3.18 2.71 2.30 1.96 1.66 1.41

Total Depreciation
[1+2+3+4] 0.30 0.56 0.48 0.41 0.35 0.29 0.25
M/[Link] PRASAD SINGH
ANNEXURE NO.2

BREAK-EVEN ANALYSIS
Years
1 2 3 4 5 6 7
A. Receipts 100.00 120.00 144.00 172.80 207.36 248.83 298.60

B. Variable cost: 69.90 106.64 126.26 149.76 177.90 186.80 196.14

D. Fixed costs:
Depreciation 0.30 0.56 0.48 0.41 0.35 0.29 0.25
Interest on Term Loan 2.73 2.31 1.90 1.49 0.00 0.00 0.00
Administration Expenses 1.80 1.89 1.98 2.08 2.19 2.30 2.41
4.83 4.77 4.36 3.98 2.53 2.59 2.66

E. Contribution [ B - C ] 30.10 13.36 17.74 23.04 29.46 62.03 102.46

F. [Link] [ E/B x 100 ] 30.10 11.13 12.32 13.33 14.21 24.93 34.31

G. Break - even [ Value ]

[ D / F x 100 ] 16.05 42.81 35.43 29.85 17.83 10.39 7.76

H. Cash Break Even 15.04 37.77 31.55 26.81 15.40 9.21 7.03
[ Without Depreciation]
M/[Link] PRASAD SINGH
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.
I 1 30.00 1.07 28.93 0.72
2 28.93 1.07 27.86 0.69
3 27.86 1.07 26.78 0.67
4 26.78 1.07 25.71 0.64 2.73
II 1 25.71 1.07 24.64 0.62
2 24.64 1.07 23.57 0.59
3 23.57 1.07 22.50 0.57
4 22.50 1.07 21.42 0.54 2.31
III 1 21.42 1.07 20.35 0.51
2 20.35 1.07 19.28 0.49
3 19.28 1.07 18.21 0.46
4 18.21 1.07 17.14 0.44 1.90
IV 1 17.14 1.07 16.06 0.41
2 16.06 1.07 14.99 0.39
3 14.99 1.07 13.92 0.36
4 13.92 1.07 12.85 0.33 1.49
V 1 12.85 1.07 11.78 0.31
2 11.78 1.07 10.70 0.28
3 10.70 1.07 9.63 0.26
4 9.63 1.07 8.56 0.23 1.08
VI 1 8.56 1.07 7.49 0.21
2 7.49 1.07 6.42 0.18
3 6.42 1.07 5.34 0.15
4 5.34 1.07 4.27 0.13 0.67
VI 1 4.27 1.07 3.20 0.10
2 3.20 1.07 2.13 0.08
3 2.13 1.07 1.06 0.05
4 1.06 1.07 (0.02) 0.03 0.26
NOTE : Interest on Term Loan is calculated at 13% per annum liquidated in
7 year
M/[Link] PRASAD SINGH
ANNEXURE NO.4

DEBT SERVICE COVERAGE RATIO :

Operating Years
(A HDPE/PP Fabrics Project)
1 2 3 4 5 6 7
A. SOURCES :
Profit after tax 16.37 4.87 8.16 12.09 16.80 39.82 68.32
Depreciation 0.30 0.56 0.48 0.41 0.35 0.36 0.38
Interest on term loan 2.73 2.31 1.90 1.49 1.08 0.67 0.26
TOTAL OF ' A ' 19.40 7.75 10.54 13.99 18.22 40.85 68.96

B DEBT :
Term loan installment 4.29 4.29 4.29 4.29 4.29 4.29 4.29
Interest on Term Loan 2.73 2.31 1.90 1.49 1.08 0.67 0.26

TOTAL OF ' B ' 7.01 6.60 6.19 5.78 5.37 4.96 4.54

C Debt Service Coverage Ratio

DSCR [A/B] 2.77 1.17 1.70 2.42 - - -

D Average DSCR 1.15

M/[Link] PRASAD SINGH
ANNEXURE NO.5

ANALYSIS OF RETURN ON INVESTMENT :

(A HDPE/PP Fabrics Project)
1. Return on Investment = Average Return x 100
Capital Employed

2. Return = Profit before tax + Depreciation + Interest on term loan

3. Capital Employed = Cost of the Project

RETURN ON INVESTMENT :

OPERTING YEARS
PARTICULARS
1 2 3 4 5 6 7
Profit before tax 23.38 6.96 11.66 17.28 24.00 56.88 97.60

Depreciation 0.30 0.56 0.48 0.41 0.35 0.36 0.38

Interest on Term Loan 2.73 2.31 1.90 1.49 1.08 0.67 0.26

26.41 9.84 14.04 19.17 25.43 57.91 98.24

# Average Return 50.21

# Capital Employed 80.87

# Return on Investment 62.09 %

M/[Link] PRASAD SINGH
ANNEXURE NO.6
Assumption and workings notes to the Financial Statements of the Project Report:
1 Revenue In Lakhs

Total Quantity Estimated to be sold for a month : 30 pcs

Sale value of each Ton : 0.1
Monthly Revenue : 2.50
Yearly Revenue 30.00
First year Revenue for 6 months 15.00
Every year the Revenue is estimated to increase
by 20%. 36.00

2 Material Purchase Costs

The material is estimated to cost at 90% of sales price.
The cost for 1 year is 390*90% = 351 Lakhs

3 Salary
[Link]. Category of Employee [Link] Salary per Salary per
Employees Month Annuam
1 Managers 2 6,750.00 162,000.00
2 Helpers 7 4,500.00 378,000.00
3 Accountant 1 5,000.00 60,000.00
Total 10 600,000.00
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

Page 11 of 11
BANK INTEREST ON CC 219,000.00