PROJECT COST OF AND MEANS OF FINANCE

COST OF THE SCHEME

(Rs. In lakhs)

Particulars

Project cost

Plant and Machinery including Tools and Equipments

Bank Loan Own Capital

20.00

15.00

5.00

Land & Building

103.00

77.25

25.75

Working capital

10.00

6.50

3.50

133.00

98.75

34.25

Total Project Cost

Means of Finance

Particulars

Amount to be
raised

Promotor's Equity

34.25

Bank Term Loan

92.25

Bank Working Capital Loan

Total

6.50
133.00

STATEMENT OF INVESTMENT IN PROJECT

PARTICULARS OF ASSETS

QTY

PRICE

AMOUNT

Land & Building

Land

23.00

Building & other civil works

80.00

Total

103.00

Plant and Machinery (as per quotation attached)

Briquette Making Machine

Conveyors

16.00

20.00

Total

20.00

Working capital

10.00

Total Cost of the Project

133.00

19.6

28.88/

16.00

ECONOMICS OF THE PROJECT

Particulars
Installed capacity per day of per shift (8hr per
shift)
Operating capacity
Capacity per day
No. of working days estimated per year

%
ton
Days

16
80
10.4
300

16
85
11.2
300

16
90
12
300

Total Operating Capacity per Year Units

ton

3120

3360

3600

Year 1
3120
0
312
2808
4500
126.36
126.36

Year 2
3360
312
336
3336
4500
150.12
150.12

Year 3
3600
336
360
3576
4500
160.92
160.92

Year 1

Year 2

Year 3

Statement showing Production and sales

Production
Add: Opening Stock
Less: Closing Stock
Sales Volume
Average Sale Price per ton
Sales Value
Total Sales Value

ton
ton
ton
ton
Rs.
Rs. In Lakhs

STATEMENT SHOWING VARIABLE EXPENSES PER ANNUM AT 80% CAPACITY LEVEL

QTY

RATE

AMOUNT

Raw Material:
Groundnut shell, Rice husk, Saw dust

Ton

3120

1700

53.04

0.00

Diamond segments etc

Total Material consumed

53.04

Direct Labour :
Production incharge

8000

0.96

Machine Assistant

5000

1.20

Unskilled workers

10

3000

3.60

Total Wages

4.80

Power and Fuel

2.40

Repairs and Maintenance

0.75

Variable Overheads

0.50

Total Variable Expenses

61.49

STATEMENT SHOWING FIXED EXPENSES PER ANNUM (Rs. In Lakhs Ommitted)

Particulars
Salaries

Nos.

Per Month

Amount

5000

12

0.60

Telephone Charges

5000

12

0.60

Postage and Stationery

1000

12

0.12

Travelling Expenses

5000

12

0.60

Office Maintainance

2000

12

0.24

General Expenses

2000

12

0.24

Total fixed Expenses per Annum

Months

2.40

3200

STATEMENT OF BREAK EVEN POINT

A) Sales
B) Variable Cost
C) Contribution
D) Fixed Cost per annum
E) BEP Sales in %
F) BEP Sales in Value
G) BEP Sales in Volume

126.36
61.49
64.87
16.28
25.09%
31.71
783

A-B
D/C
(D/C)*A
(D/C)*NOS

ECONOMIC INDICATORS
A) Investment in Building and Machinery
B) Employment potential
C) Investment per Worker

123
12
10.25

STATEMENT OF DEPRICIATION
Particulars
Building 10% on WDV
Machinery 25% on WDV
Furniture 10% on WDV
Total Depreciation

Year1
Rs.
8.00
5.00

Year2
Rs.
7.20
3.75

Year3
Rs.
6.48
2.81

Year4
Rs.
5.83
2.11

Year5
Rs.
5.25
1.58

13.00

10.95

9.29

7.94

6.83

TERMLOAN REPAYMENT SCHEDULE WITH INTEREST

Term Loan Principle Amount (Rs. In Lakhs)
Rate of Interest per annum
Repayment Schedule
1st instalment due
Holiday Period
Instalment per Month
Instalments

1 Instalment
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

92.25
13.50%
60 Months
6 Months
1.54
Principle Instalment
OB
92.25
92.25
92.25
92.25
92.25
92.25
92.25
1.54
90.71
1.54
89.18
1.54
87.64
1.54
86.10
1.54
84.56
1.54
83.03
1.54
81.49
1.54
79.95
1.54
78.41
1.54
76.88
1.54
75.34
1.54
73.80
1.54
72.26
1.54
70.73
1.54
69.19
1.54

Interest

18.45

1.04
1.04
1.04
1.04
1.04
1.04
1.04
1.02
1.00
0.99
0.97
0.95
0.93
0.92
0.90
0.88
0.86
0.85
0.83
0.81
0.80
0.78

6.23

11.31

17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60

67.65
66.11
64.58
63.04
61.50
59.96
58.43
56.89
55.35
53.81
52.28
50.74
49.20
47.66
46.13
44.59
43.05
41.51
39.98
38.44
36.90
35.36
33.83
32.29
30.75
29.21
27.68
26.14
24.60
23.06
21.53
19.99
18.45
16.91
15.38
13.84
12.30
10.76
9.23
7.69
6.15
4.61
3.08
1.54

1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
1.54
92.25

18.45

18.45

18.45

6.13

0.76
0.74
0.73
0.71
0.69
0.67
0.66
0.64
0.62
0.61
0.59
0.57
0.55
0.54
0.52
0.50
0.48
0.47
0.45
0.43
0.42
0.40
0.38
0.36
0.35
0.33
0.31
0.29
0.28
0.26
0.24
0.22
0.21
0.19
0.17
0.16
0.14
0.12
0.10
0.09
0.07
0.05
0.03
0.02

8.82

6.33

3.84

1.35
37.88

52500
1.5375

1.5375

18.45

0.00375
375

28.88
6.13
35.01
7.002

TERM LOAN REPAYMENT SCHEDULE WITH INTEREST AND CASH CREDIT PER ANNUM (IT IS
ASSUMED THAT TERM LOAN OF Rs. 92.25Lakhs WILL BE REPAID IN 60 MONTHLY
INSTALLMENTS WITH INTEREST AT 13.5 % PA)

PARTICULARS
No of Months Paid

Const

Year 1
6

Year 2

Year 3

Year 4

Year 5

12

12

12

12

12

18.45

18.45

18.45

18.45

6.13

11.31

8.82

6.33

3.84

1.35

0.88

0.88

0.88

0.88

0.88

6.23

12.19

9.70

7.21

4.72

2.23

6.23

30.64

28.15

25.66

23.17

8.36

(A) Amount Paid in each year

(Rs. 92.25/60)*12
Interest at 13.50% PA

6.23

Interest on Working Capital

at 13.50% PA on Rs. 6,50,000

(B) Total Interest Paid PA

Total Interest and Principal

Paid to Bank PA (A+B)

PROJECTED COST OF PRODUCTION AND PROFITABILITY STATEMENT AT 65% CAPACITY

LEVEL
PARTICULARS
SALES
Less : Cost of Production
Raw material consumed
Wages
Power and fuel
Repairs and Maintenance
Variable overheads
Cost of Production
Less : Finished Goods
Cost of Goods Sold

AMOUNT

AMOUNT
126.36

53.04
4.80
2.40
0.75
0.50
61.49
3.07
58.42

Gross Profit

58.42
67.94

Less : Selling and Administrative Expenses

Salaries
Telephone Charges
Postage and Stationery
Travelling Expenses
Office Maintanence
General Expenses
Depreciation
Total selling and Administrative Exp
Cost of Sales

0.60
0.60
0.12
0.60
0.24
0.24
13.00
15.40
76.89

Net Profit Before Interest and Tax

Less : Interest
on term loan
on working capital loan
Total Interest Paid to Bank

15.40

52.54
11.31
0.88
12.19

Net Profit Before Tax

Less : Income Tax Paid
Net Profit After Tax

12.11

12.19
40.35
12.11
28.25

STATEMENT SHOWING WORKING CAPITAL REQUIREMENT

PARTICULARS
Finished Goods (on cost of production)
Raw materials (on consumption)
Total Working Capital Required

Amount
61.49
53.04

Days
15
30

Amount
3.07
5.30
8.38

1970.833
614900

PROJECTED COST OF PRODUCTION AND PROFITABILITY STATEMENT

PARTICULARS
Capacity level
(1) Sales (A)
Cost of Sales
Purchase of Raw materials
Add: Opening Stock of RM
Less : Closing Stock of RM
Raw Material Consumed
Wages
Power and Fuel
Repairs and Maintenance
Variable Overheads

Year 1
65

Year 2
70

Year 3
75

Year 4
75

Year 5
75

126.36

150.12

160.92

160.92

160.92

58.34
0.00
5.30
53.04
4.80
2.40
0.75
0.50

64.18
5.30
5.30
64.18
5.28
2.64
0.83
0.55

70.60
5.30
5.30
70.60
5.81
2.90
0.91
0.61

70.60
5.30
5.30
70.60
6.39
3.19
1.00
0.67

70.60
5.30
5.30
70.60
7.03
3.51
1.10
0.73

(2) Sub Total Cost of Production (B)

Add : Opening Stock of FG
Less : Closing Stock of FG
Cost of Goods sold
(3) Gross Profit

61.49
0.00
6.15
55.34
71.02

73.47
6.15
6.15
73.47
76.65

80.82
6.15
6.15
80.82
80.10

81.84
6.15
6.15
81.84
79.08

82.97
6.15
6.15
82.97
77.95

Selling, General Admin. Exp.

Salaries
Telephone Charges
Postage and Stationery
Travelling Expenses
Office Maintanance
General Expenses
Depriciation
Interest on Term Loan and WC
(4) Sub Total

0.60
0.60
0.12
0.60
0.24
0.24
13.00
12.19
27.59

0.66
0.66
0.13
0.66
0.26
0.26
14.30
13.41
30.35

0.73
0.73
0.15
0.73
0.29
0.29
15.73
14.75
33.38

0.73
0.73
0.15
0.73
0.29
0.29
15.73
14.75
33.38

0.73
0.73
0.15
0.73
0.29
0.29
15.73
14.75
33.38

Operating Profit (3-4)

Add : Other Income
Less : Other expenses
Profit Before Tax
Income Tax Paid
Net Profit after Tax
Add : Depreciation
Cash Accruals

43.43
0.00
0.00
43.43
13.03
30.40
13.00
43.40

46.30
0.00
0.00
46.30
13.89
32.41
10.95
43.36

46.72
0.00
0.00
46.72
14.01
32.70
9.29
41.99

45.69
0.00
0.00
45.69
13.71
31.99
7.94
39.93

44.57
0.00
0.00
44.57
13.37
31.20
6.83
38.03

ANALYSIS OF PROJECTED BALANCE SHEET

Year 1
LIABILITIES
Current Liabilities :
Our Bank
Other Banks
Sundry Creditors
Misc. Creditors
Expenses
Others
(1) Sub Total
Term Liabilities
Our Bank
Other Banks, APSFC
Loans from friends & relatives
Others (specify), Unsecured loans
(2) Sub Total
Capital & Reserves
Capital
(Opening of capital)
Add Profit
Add : Additional capital if any
Less drawings
Genral reserves
Others if any
(3) Sub Total
Total (1+2+3)
ASSETS
Current Assets
Cash
Bank Balances
Closing Stock
Sundry Debtors
Advance to suppliers
(4) Sub Total
Fixed Assets
Land & Buildings
Plant & Machinery and tools
Furniture etc.
Others deposits if any
(5) Sub Total
Power deposit
Total (4+5)
Liquid Surplus (4-1)
Deficit (1-4)

Year 2

Year 3

(Rs. In Lakhs)
Year 4
Year 5

6.50
0.00
0.00
0.00
0.00
0.00
6.50

6.50
0.00
0.00
0.00
0.00
0.00
6.50

6.50
0.00
0.00
0.00
0.00
0.00
6.50

6.50
0.00
0.00
0.00
0.00
0.00
6.50

6.50
0.00
0.00
0.00
0.00
0.00
6.50

73.80
0.00
0.00
0.00
73.80

55.35
0.00
0.00
0.00
55.35

36.90
0.00
0.00
0.00
36.90

18.45
0.00
0.00
0.00
18.45

0.00
0.00
0.00
0.00
0.00

34.25

64.65

97.06

129.76

161.75

30.40

32.41

32.70

31.99

31.20

0.00
0.00
0.00
64.65

0.00
0.00
0.00
97.06

0.00
0.00
0.00
129.76

0.00
0.00
0.00
161.75

0.00
0.00
0.00
192.94

144.95

158.91

173.16

186.70

199.44

28.80

53.71

77.25

98.73

130.63

6.15
0.00

6.15
0.00

6.15
0.00

6.15
0.00

6.15
0.00

34.95

59.86

83.40

104.88

136.78

95.00
15.00
0.00
0.00
110.00
0.00
144.95
28.45
-28.45

87.80
11.25
0.00
0.00
99.05
0.00
158.91
53.36
-53.36

81.32
8.44
0.00
0.00
89.76
0.00
173.16
76.90
-76.90

75.49
6.33
0.00
0.00
81.82
0.00
186.70
98.38
-98.38

70.24
4.75
0.00
0.00
74.99
0.00
211.76
130.28
-130.28

0.000

PROJECTED CASH FLOW STATEMENT

Particulars
Cash from Operations
Net profit before Tax
Add : Depreciation
Add : Interest on Loan
Cash Generated from Operations
Less : Tax Paid
Operating profit before working
capital Changes (A)
Increase in sundry dehbtors
Increase in Closing Stock
Advance to suppliers
Decrease in Sundry Creditors
Decrease in Sundry debtors
Decrease in stock
Increase in sundry creditos
Change in Working Capital (B)
Net Cash from Operations (A-B) = C
Cash from investing activities
Land and Buildings
Furniture
Purchase of Plant and Machinery
Deposits
Net Cash from Investing operations
(D)
Cash from Financing Activities
Capaital Account
Unsecured Loans
Bank Cash Credit
Bank Term Loan
Interest Paid
Repayment of TL
Repayment of Unsecured Loans
Drawings
Net Cash from Financing Activities (E)
Net Increase in Cash (C+D+E)
Add : Opening Balance
Closing Cash/Bank Balance

Const.

Year 1

Year 2

Year 3

(Rs. In Lakhs)
Year 4
Year 5

43.43
13.00
12.19
68.62
13.03

46.30
10.95
9.70
66.95
13.89

46.72
9.29
7.21
63.22
14.01

45.69
7.94
4.72
58.35
13.71

44.57
6.83
2.23
53.63
13.37

55.59
0.00
-6.15
0.00
0.00
0.00
0.00
0.00
-6.15
49.44

53.06
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
53.06

49.20
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
49.20

44.64
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
44.64

40.26
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
40.26

-103.00
0.00
-20.00
0.00

0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00

0.00
0.00
0.00
0.00

-123.00

0.00

0.00

0.00

0.00

0.00

30.75
0.00
0.00
92.25

3.50
0.00
6.50
0.00
-12.19
-18.45
0.00
0.00

0.00
0.00
0.00
0.00
-9.70
-18.45
0.00
0.00

0.00
0.00
0.00
0.00
-7.21
-18.45
0.00
0.00

0.00
0.00
0.00
0.00
-4.72
-18.45
0.00
0.00

0.00
0.00
0.00
0.00
-2.23
-6.13
0.00
0.00

123.00

-20.64

-28.15

-25.66

-23.17

-8.36

28.80
0.00
28.80

24.91
28.80
53.71

23.54
53.71
77.25

21.48
77.25
98.73

31.90
98.73
130.63

DEBT SERVICE COVERAGE RATIO

Particulars

Year 1

Year 2

Year 3

Year 4

Year 5

Net Profit after Tax

30.40

32.41

32.70

31.99

31.20

Add : Depreciation

13.00

10.95

9.29

7.94

6.83

Add : Interest

12.19

9.70

7.21

4.72

2.23

Cash Available (A)

55.59

53.06

49.20

44.64

40.26

0.00

0.00

0.00

0.00

0.00

Repayment of Term Loan

18.45

18.45

18.45

18.45

18.45

Interest on Loan

12.19

9.70

7.21

4.72

2.23

Debt Obligation (B)

30.64

28.15

25.66

23.17

20.68

1.81

1.88

1.92

1.93

1.95

Repayment of Unsecured Loans

DSCR (A/B)
Average DSCR

1.90

ANALYSIS OF PROJECTED FUNDS FLOW STATEMENT

Particulars

Const.

Year 1

Year 2

Year 3

Year 4

Year 5

SOURCES OF FUNDS
Capital

3.50

0.00

0.00

0.00

0.00

Profit after Tax

30.40

32.41

32.70

31.99

31.20

Depreciation

13.00

10.95

9.29

7.94

6.83

Unsecured Loans

0.00

0.00

0.00

0.00

0.00

Loans from Relatives and Friends

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

46.90

43.36

41.99

39.93

38.03

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Repayment of Bank Loan

18.45

18.45

18.45

18.45

18.45

Increase in Working Capital

28.45

24.91

23.54

21.48

19.58

123.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

123.00

46.90

43.36

41.99

39.93

38.03

Bank Term Loan

30.75

92.25

Decrease in Working Capital

TOTAL

123.00

Repayment of Unsecured Loan

Repayment of Loans from
Relatives and friends

Deposits
Purchase of Fixed Assets
Power Deposit
TOTAL

ASSESSED BANK FINANCE

Year 1
Total Current Assets (TCA)

Year 2

Year 3

Year 4

Year 5

34.95

59.86

83.40

104.88

136.78

0.00

0.00

0.00

0.00

0.00

Working Capital Gap

34.95

59.86

83.40

104.88

136.78

Net Working Capital (NWC) (Actual Projections)

28.45

53.36

76.90

98.38

130.28

Assessed Bank Finance

10.00

10.00

10.00

10.00

10.00

81.40%

89.14%

92.21%

93.80%

95.25%

4.44

2.81

2.09

1.64

1.24

Other CL to TCA (%)

0.00%

0.00%

0.00%

0.00%

0.00%

Sundry Creditors to TCA (%)

0.00%

0.00%

0.00%

0.00%

0.00%

Inventory to Net Sales (days)

18

15

14

14

14

Total Outstanding Loan (Inclusive of Bank Loans)

80.30

61.85

43.40

24.95

6.50

Paid up Capital

64.65

97.06

129.76

161.75

192.94

Total Net Worth (TNW)

64.65

97.06

129.76

161.75

192.94

TOL/TNW

1.24

0.64

0.33

0.15

0.03

Current Ratio

5.38

9.21

12.83

16.14

21.04

Liquidity Ratio

18.78

15.80

14.74

14.74

14.74

PBT

43.43

46.30

46.72

45.69

44.57

PAT

30.40

32.41

32.70

31.99

31.20

PBIT

31.24

32.89

31.97

30.94

29.82

PBDIT

68.62

66.95

63.22

58.35

53.63

PBT/Net Sales (%)

34.37%

30.84%

29.03%

28.40%

27.70%

PAT/Net Sales (%)

24.06%

21.59%

20.32%

19.88%

19.39%

5.63

6.90

8.77

12.37

24.08

27.27%

53.18%

73.66%

124.02%

458.76%

Other Curent Liabilities (Except Bank Borrowings)

NWC to TCA (%)

Working Capital to Turnover Ratio

PBDIT/Interest (times)
ROI (Return on Investment)
Pay back period (in years)
Total Tangiable Assets
Net Sales/Total Tangible Assets (times)
PBT/Total Tangible Assets (%)

3.67
110.00

99.05

89.76

81.82

74.99

1.15

1.52

1.79

1.97

2.15

39.48%

46.74%

52.05%

55.85%

59.44%

COMPUTATION OF WORKING CAPITAL UNDER TADITIONAL METHOD

(Rs. In Lakhs)
Estimated Sales per Annum

126.36

Sales per month

10.53

Cost of production per month

6.15

Cost of Raw Material per month

5.30

ITEM

Stocking
days

WC
Required

Margin %

Mar. Value

PBF

Raw Material

30

6.66

25

1.67

5.00

Finished Goods

15

7.00

25

1.75

5.25

3.42

10.25

TOTAL

13.66

Maximum Working Capital Required

13.66

Less : Opening Working Capital

3.42

Less : Sundry Creditors

0.00

A-(C+D)=E

10.25

10.25

Working Capital Required

Permissible Working Capital
Working Capital Recommended

10.00