M/s Pankaj Shah

PROJECT REPORT FOR M/S PANKAJ SHAH

I. GENERAL INFORMATION :
A. Name of the Firm :
B. Offie Address :

C. Factory Address :

D. Nature Of Business :
E Constitution :
F Name of the Proprietor :

M/s Pankaj Shah

COST OF PROJECT :
Cost of Project are estimated at Rs.21.50 lac which is calaulated as under :

Nature of Cost :
Land
Construction
Plant & Machinery ( Imported)
Plant & Machinery (Indegeneous)
Computer
AC & CVT
Working Capital
Other Assets
Capital Cost of Project

Existing

Proposed
-

###
###
21.50
###

21.50

Total
21.50
21.50

21.50
Source of Funds :
Proprietor's Capital
Term Loan From Banks
Unsecured Loan

5.38
16.12

5.38
16.12
-

21.50

21.50

M/s Pankaj Shah

Plant & Machinery :

Name of Machine ?????/

Total

9.90

11.60

21.50

M/S Pankaj Shah

Computation of Depreciation for Books of Accounts :

First Year :
Nature of Assets

Construction
Plant & Machinery (Imp)
Plant & Machi(Indege)
Computer
A.C. & C.V.T.
Other Assets

Second Year :
Nature of Assets

Construction
Plant & Machinery (Imp)
Plant & Machi(Indege)
Computer
A.C. & C.V.T.
Other Assets

Third Year :
Nature of Assets

Construction
Plant & Machinery (Imp)
Plant & Machi(Indege)
Computer
A.C. & C.V.T.
Other Assets

(Rs. in Lacs)

W.D.V

Purchases

Sales

21.50
-

###
-

21.50
-

21.50

21.50

W.D.V

Purchases

Sales

Total

Total

19.89
-

###
###
###
###
###
###

19.89
-

19.89

19.89

W.D.V

Purchases

Sales

Total

16.90
-

###
###
###
###
###
###

16.90
-

16.90

16.90

Rate

10%
15%
25%
60%
15%
15%

Rate

10%
15%
25%
60%
15%
15%

Rate

10%
15%
25%
60%
15%
15%

Dep

Closing
W.D.V.

1.61
-

19.89
-

1.61

19.89

Dep

Closing
W.D.V.

2.98
-

16.90
-

2.98

16.90

Dep

Closing
W.D.V.

2.54
-

14.37
-

2.54

14.37

M/S Pankaj Shah

Fourth Year :
Nature of Assets

Construction
Plant & Machinery (Imp)
Plant & Machi(Indege)
Computer
A.C. & C.V.T.
Other Assets

Fifth Year :
Nature of Assets

Construction
Plant & Machinery (Imp)
Plant & Machi(Indege)
Computer
A.C. & C.V.T.
Other Assets

Sixth Year :
Nature of Assets

Construction
Plant & Machinery (Imp)
Plant & Machi(Indege)
Computer
A.C. & C.V.T.
Other Assets

W.D.V

Purchases

Sales

Total

14.37
-

###
###
###
###
###
###

14.37
-

14.37

14.37

W.D.V

Purchases

Sales

Total

12.21
-

###
###
###
###
###
###

12.21
-

12.21

12.21

W.D.V

Purchases

Sales

Total

10.38
-

###
###
###
###
###
###

10.38
-

10.38

10.38

Rate

10%
15%
25%
60%
15%
15%

Rate

10%
15%
25%
60%
15%
15%

Rate

10%
15%
25%
60%
15%
15%

Dep

Closing
W.D.V.

2.16
-

12.21
-

2.16

12.21

Dep

Closing
W.D.V.

1.83
-

10.38
-

1.83

10.38

Dep

Closing
W.D.V.

1.56
-

8.82
-

1.56

8.82

M/S Pankaj Shah

Calculation of interest on Bank Loan : Under CLCS Scheme

Loan Amount
1st 1st Quar.
Year 2nd Quar.
3rd quar.
4th quar

16.12
16.12

Interest
Interest
Rate
for 3 month
15.00%
15.00%
15.00%
0.40
15.00%
0.60

Total
2nd 1st Quar.
Year 2nd Quar.
3rd quar.
4th quar

15.31
14.50
13.69
12.88

15.00%
15.00%
15.00%
15.00%

Total
3rd 1st Quar.
Year 2nd Quar.
3rd quar.
4th quar

12.07
11.26
10.45
9.64

15.00%
15.00%
15.00%
15.00%

Total
4th 1st Quar.
Year 2nd Quar.
3rd quar.
4th quar

8.83
8.02
7.21
6.40

15.00%
15.00%
15.00%
15.00%

Total
5th 1st Quar.
Year 2nd Quar.
3rd quar.
4th quar

5.59
4.78
3.97
3.16

15.00%
15.00%
15.00%
15.00%

Total
6TH 1st Quar.
Year 2nd Quar.
3rd quar.
4th quar

2.35
1.54
0.73
(0.00)
Total

15.00%
15.00%
15.00%
15.00%

Towards
Principal
-

Total
Balance
Instalment
Due
0.40
16.12
0.81
1.41
15.31

1.01

0.81

1.82

0.57
0.54
0.51
0.48

0.81
0.81
0.81
0.81

1.38
1.35
1.32
1.29

2.11

3.24

5.35

0.45
0.42
0.39
0.36

0.81
0.81
0.81
0.81

1.26
1.23
1.20
1.17

1.63

3.24

4.87

0.33
0.30
0.27
0.24

0.81
0.81
0.81
0.81

1.14
1.11
1.08
1.05

1.14

3.24

4.38

0.21
0.18
0.15
0.12

0.81
0.81
0.81
0.81

1.02
0.99
0.96
0.93

0.66

3.24

3.90

0.09
0.06
0.03
(0.00)

0.81
0.81
0.73
-

0.90
0.87
0.76
(0.00)

0.17

2.35

2.52

14.50
13.69
12.88
12.07

11.26
10.45
9.64
8.83

8.02
7.21
6.40
5.59

4.78
3.97
3.16
2.35

1.54
0.73
(0.00)
(0.00)

M/S Pankaj Shah

M/S Pankaj Shah

Calculation of interest on Bank Loan : Under Personal Loan

Loan Amount

Interest

Towards
Principal

Total
Balance
Instalment
Due

1st 1st Quar.

Year
Total
2nd 1st Quar.
Year

Total

3rd 1st Quar.

Year

Total

4th 1st Quar.

Year

Total

5th 1st Quar.

Year

Total

M/S Pankaj Shah

IV. PROJECTED PROFITABILITY STATEMENT :
Particulars

31-03-09

I. Income :
Job Work From Embroidery Wor

(Rs. in Lacs)

31-03-10

31-03-11

31-03-12

31-03-13

16.04

38.49

38.49

38.49

38.49

16.04

38.49

38.49

38.49

38.49

3.70
1.39
3.80
0.32
0.80
0.22

8.88
3.51
9.58
0.77
1.92
0.65

8.88
3.51
9.58
0.77
1.92
1.08

8.88
3.68
9.58
0.77
1.92
1.13

8.88
3.87
9.58
0.77
1.92
1.19

Sub Total

10.23

25.31

25.74

25.97

26.21

Gross Profit (A) - (B)

II. Expenses :
Depreciation Exp.
Administrative Expenses
Interest on Loan under TUF Sc
Interest on Loan under regulars
Interest on unsecured Loan

5.81

13.19

12.76

12.53

12.29

1.61
0.42
1.01
-

2.98
1.50
2.11
-

2.54
1.50
1.63
-

2.16
1.50
1.14
-

1.83
1.50
0.66
-

3.04

6.60

5.66

4.80

3.99

Profit before Taxation

Previous year Loss
Total Profit

2.77
2.77

6.59
###
6.59

7.09
7.09

7.73
7.73

8.30
8.30

Income Tax

0.13

1.53

1.68

1.87

2.04

Profit after tax

2.64

5.06

5.42

5.86

6.26

Less:
Thread Expenses
Power Cost
Wages & Salaries
Consumable Stores & spares
Other Manufacturing Cost
Repairs & Maintenance

M/S Pankaj Shah

Production during the year:

(Rs. in Lacs)

The Production capacity for embroidery work on saree depends on no.of stiches applied to the sarees.

No.of Machine
No.of Heads
No.of Colours
Working Speed (R.P.M.)
Stiches per Minute
Stiches per Month

4
36
6

(7*2) + (11*2)

300*700
210000x 25 x 960
Total Minutes per day
1,440
Less: Setting Time
480
960

Stitches per saree of 4.8 meter length

Sarees Production per Month
Embroidered Fabric production\ 30days meters (25200*4.8)

Particulars
Production at 100% capacity
Capcity utilisation
Production per Month
Production per Annum
Job Charges Per Mtrs
Total Job charges p.a.

1st Year
2nd Year
14,515
14,515
85%
85%
12,338
12,338

700
25,200
604,800,000

200,000
3,024
14,515

3rd Year
14,515
85%
12,338

4th Year
14,515
85%
12,338

5th Year
14,515
85%
12,338

148,055

148,055

148,055

148,055

148,055

26.00
38.49

###
38.49

26.00
38.49

26.00
38.49

26.00
38.49

M/S Pankaj Shah

Embroidery Thread Expenses:
Particulars
Production at 100% capacity
Capcity utilisation
Production per Month
Production per Annum
Thread Expenses Per mitre
Total Thread Expenses

1st Year
2nd Year
14,515
14,515
85%
85%
12,338
12,338

3rd Year
14,515
85%
12,338

4th Year
14,515
85%
12,338

5th Year
14,515
85%
12,338

148,055

148,055

148,055

148,055

148,055

6.00
8.88

###
8.88

6.00
8.88

6.00
8.88

6.00
8.88

M/S Pankaj Shah

Power Expenses :
Power Calculation
Embroidery Machine
General Lighting

(Rs. in Lacs)
M/cs

H.P
4

2.50

Total H.P
10.00
1.00
11.00

Power Calculation
Power Cost

6.00*22.5*300*4.5 =
3.34

3.51

3.34
3.51

3.68

3.87

M/S Pankaj Shah

Labour Charges :Man
Operator
Helper
Operator

Shift
4
4
2

2
2
###

Rate
4,000.00
3,000.00
5,000.00

month

Total Salary
12
12
12

384,000
288,000
240,000

Wages & Salaries

9.12

9.58

9.58

9.58

912,000
9.58

Total Wages & Salaries

9.12

9.58

9.58

9.58

9.58

Total wages & Salaries

9.12

9.58

9.58

9.58

9.58

M/S Pankaj Shah

Consumable Stores & spares

2% of Labour Income

0.32

0.77

0.77

0.77

0.77

0.80

1.92

1.92

1.92

1.92

1%
0.22

3%
0.65

5%
1.08

5%
1.13

5%
1.19

1.00

1.50

1.50

1.50

1.50

1st Year

2nd Year

3rd Year

Other Manufacturing Cost :

5.00% of Consumption

Repairs & Maintenance exp.:

Capital Cost of Project @
and 5% increase thereof

Administrative Expenses :
Expenses Per Annum

Calculation of Income Tax

Particulars
Net profit before tax
Basic Exemption Limit
Net Profit
Tax @ 30%

2.77
1.50
1.27
0.13

6.59
###
5.09
1.53

7.09
1.50
5.59
1.68

4th Year
7.73
1.50
6.23
1.87

5th Year
8.30
1.50
6.80
2.04

M/S Pankaj Shah

31-03-14

22.46

22.46
5.18
2.26
5.59
0.45
1.12
0.73

15.32

7.13
1.56
0.88
0.17
2.61
4.53
4.53
0.61
3.92

M/S Pankaj Shah

6th year
14,515
85%
12,338
148,055

26.00
38.49

M/S Pankaj Shah

6th year
14,515
85%
12,338
148,055

6.00
8.88

M/S Pankaj Shah

3.87

M/S Pankaj Shah

9.58
9.58

9.58

M/S Pankaj Shah

0.45

1.12

5%
1.24

1.50

6th Year
4.53
1.50
3.03
0.61

M/S Pankaj Shah

CASH FLOW STATEMENT :
Pre-Period 31-03-09 31-03-10 31-03-11 31-03-12 31-03-13
Sources of funds :
Net profit as per profitability statement(Before tax)
Introduced by proprietor
Term Loan
Unsecured Loan
Inc. in Bank Borrowing
Depreciation

Application of Funds :
Land
Construction
Plant & Machinery
Plant & Mac(Indege.)
Computer
Vehicle
other Assets
Investment
Repayment of Term loan-Tuf
Increase In Labour Receivable
Increase In Closing Stock
withdrawal
Income Tax Paid

5.38
16.12
-

2.77
###
1.61

6.59
###
###
###
2.98

7.09
2.54

7.73
2.16

8.30
###
###
###
###
1.83

21.50

4.38

9.57

9.63

9.89

10.13

21.50
-

21.50

###
###
###
###
###
###
###

###
###
###
###
###
###
###

0.81
1.34
1.00
0.13
3.27

3.24
2.94
1.00
1.20
1.53
9.91

3.24
2.14
0.50
1.20
1.68
8.76

3.24
1.28
0.50
1.20
1.87
8.09

3.24
1.92
0.50
1.50
2.04
9.20

Opening Balance
Net Surplus

1.11

1.11
(0.33)

0.78
0.87

1.65
1.79

3.44
0.93

Closing Balance

1.11

0.78

1.65

3.44

4.37

M/S Pankaj Shah

31-03-14

4.53
1.56
6.08

2.35
1.60
0.50
1.50
0.61
6.56
4.37
(0.47)
3.89

M/S Pankaj Shah

Share Capital & Reserves & Surplus :

Particular
Opening Balance
Capital Introduce
Revaluation Reserve

31-03-09

(Rs. in Lacs)
31-03-10

31-03-11

31-03-12

31-03-13

31-03-14

Profit & Loss Account

5.38
5.38
2.64

8.02
8.02
5.06

11.89
###
###
11.89
5.42

16.10
16.10
5.86

20.76
###
###
20.76
6.26

25.52
25.52
3.92

Total

8.02

13.09

17.30

21.96

27.02

29.44

Less Withdrawal

1.20

1.20

1.20

1.50

1.50

Closing Balance

8.02

11.89

16.10

20.76

25.52

27.94

M/S Pankaj Shah

PROJECTED BALANCE SHEET
Particulars

31-03-09

31-03-10

31-03-11

31-03-12 31-03-13 31-03-14

8.02
15.31

11.89
12.07

16.10
8.83

20.76
5.59

25.52
2.35

27.94
-

23.33

###
23.96

24.93

26.35

###
27.87

27.94

19.89
1.11
1.34
1.00
23.33
-

16.90
0.78
4.28
2.00
23.96
-

14.37
1.65
6.42
2.50
24.93
-

12.21
3.44
7.70
3.00
26.35
-

10.38
4.37
9.62
3.50
27.87
-

8.82
3.89
11.23
4.00
27.94

Liability :
Capital Block
Term Loan from Bank -TUF
Term Loan from Bank -TUF Regular
Unsecured Loan
Sundry Creditors

Assets :
Land
Construction
Plant & Machinery
Plant & Mac(Indegeneous)
Computer
AC & CVT
Other Assets
Cash & Bank
Labour Receivable
Closing Stock

M/S Pankaj Shah

Calculation of various Ratios

31-03-09 31-03-10

31-03-11

31-03-12

31-03-13 31-03-14

Debt Service Coverage Ratio :

(A) Cash flow :
Net Profit after tax
Depreciation
Interest on loan-TUF
Interest on loan-Personal
Interest on Unsecured Loan

2.64
1.61
1.01
-

5.06
2.98
2.11
-

5.42
2.54
1.63
-

5.86
2.16
1.14
-

6.26
1.83
0.66
-

3.92
1.56
0.17

Total A

5.26

10.16

9.58

9.16

8.75

5.65

Repayment of Loan
Interest on loan-TUF
Repayment of
Interest on loan
Int.on Unsecured Loan

0.81
1.01
-

3.24
2.11
-

3.24
1.63

3.24
1.14

3.24
0.66

2.35
0.17

Total B

1.82

5.35

4.87

4.38

3.90

2.52

D.S.C.R.( A \ B)
Interest Coverage Ratio
Average for 5 years

2.90
5.22

1.90
4.81

1.97
5.88
2.22

2.09
8.02

2.25
13.33

2.24
32.63

(B) Debt Servicing :

M/S Pankaj Shah

Calculation of various Ratios

31-03-09 31-03-10

31-03-11

31-03-12

31-03-13 31-03-14

Debt-Equity Ratio :
(A) Debt :
Term Loan from Bank -TUF
Term Loan from Bank -Personal
Total (A)

15.31
15.31

12.07
12.07

8.83
8.83

5.59
5.59

2.35
2.35

Capital Block
Unsecured Loan
Total (B)

8.02
8.02

11.89
11.89

16.10
16.10

20.76
20.76

25.52
25.52

(C) Debt \ Equity = A\B

1.91

1.02

0.55

0.27

0.09

(B) Equity :

Average Debt\Equity Ratio

for 7 years

27.94
27.94

0.64

Current Ratio
31-03-09 31-03-10

31-03-11

31-03-12

31-03-13 31-03-14

Current Ratio:
Current Assets :
Cash on Hand
Labour Receivable
Closing Stock

Current Liability:
Sundry Creditors
Term Loan Payment due
within 1 year

Current Ratio
Working Capital

1.11
1.34
1.00
3.45

0.78
4.28
2.00
7.05

1.65
6.42
2.50
10.56

3.44
7.70
3.00
14.14

4.37
9.62
3.50
17.49

3.24

3.24

3.24

3.24

2.35

3.24

3.24

3.24

3.24

2.35

1.06
0.21

2.18
3.81

3.26
7.32

4.36
10.90

7.44
15.14

3.89
11.23
4.00
19.12

M/S Pankaj Shah

BREAK EVEN ANALYSIS
31-03-09 31-03-10 31-03-11

31-03-12

31-03-13 31-03-14

Fixed Cost :
Depreciation
Interest on loan-TUF
Interest on loan-Regular
Fixed expenses
Int.on Unsecured Loan

1.61
1.01
0.21
-

2.98
2.11
0.75
-

2.54
1.63
0.75
-

2.16
1.14
0.75
-

1.83
0.66
0.75
-

1.56
0.17
0.44
-

Total (I)

2.83

5.85

4.91

4.05

3.24

2.17

31-03-09 31-03-10 31-03-11

31-03-12

Profit Volume Ratio :

Particulars
Gross Profit
Less : Variable Cost
Administrative Exp.
Contribution (A)

31-03-13 31-03-14

5.81

13.19

12.76

12.53

12.29

7.13

0.21
5.60

0.75
12.44

0.75
12.01

0.75
11.78

0.75
11.54

0.44
6.70

Labour Income

16.04

38.49

38.49

38.49

38.49

22.46

P.V.Ratio (A) / (B)

34.91

32.31

31.19

30.60

29.97

29.82

Break Even Labour Income (C)

8.10

18.10

15.75

13.23

10.80

7.27

Margin of Safety (B) - (C)

7.94

20.40

22.74

25.27

27.69

15.18

Average Margin of Safety

19.87

M/S Pankaj Shah

AVAILABILITY OF TERM LOAN FROM BANK AS PER NORMS :

(Rs.in Lacs)

Fixed Assets
Plant & Machinery( Under TUF Scheme)
Plant & Machinery( Under Regular Hypo)
TOTAL
Assistance Required from Banks :

Margin %
25%
25%

Value

Margin

Loan

21.50
-

5.38
-

16.12
-

21.50

5.38

16.12
16.12