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INDEX

Particulars Page No
Introduction 1

Project at a glance 2

Statement of Startup Fund Requirement 3

Statement of Working Capital Requirement 4

Partculars of Capital Expenditure 5

Statement showing Cost of Inventory 6

Statement showing Employee Cost 7

Statement showing Term Loan Repayment 8

Projected Balance Sheet for next Five Years 9

Projected Profit and Loss Account for next Five Years 10

Projected Cash Flow Statement for next Five Years 11

Computation of Depreciation for next Five Years 12

Calculation of Debt Service Coverage Ratio 13

Ratio Analysis 14

Capital Budgeting Analysis 15

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PROJECT AT A GLANCE

1 Nature of Industry Hotel Indudstry

2 Cost of Project 28.15 lakhs

Particulars Bank's share Promoters share

Working Capital 5.00 2.00

Long term Investment 5.00 16.15

Total Investment ( in lakhs) 10 18.15

3 Turnover in Initial year 108 lakhs

4 Operating profit in Initial year 8.12 lakhs

5 Operating Margin 8%-10%

6 Net Profit Margin 6%-7%

7 Debt Service Coverage Ratio 6.34

8 Return on Capital Employed 21% -27%

Internal Rate of Return

9 16.86% / 24.08%
(after tax/before tax)
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STATEMENT OF START UP FUND REQUIREMENT

COST OF PROJECT Amount

Fixed Assets
1 Plant & Machinery 8 00 000.00
2 Furniture & Fixtures 4 85 000.00
3 Building 4 00 000.00
Total Fixed Assets (A) 16 85 000.00
Operating Capital
1 Rent Deposits 4 00 000.00
2 Other Deposits 30 000.00
Total Operating Capital (B) 4 30 000.00

Total Required Funds (A) + (B) 21 15 000.00

% of Total
SOURCE OF FUNDING Amount Fund
1 Owner's Capital 16 15 000.00 76.36%
2 Term Loan 5 00 000.00 23.64%

Total Sources of Funding 21 15 000.00 100.00%

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STATEMENT OF WORKING CAPITAL REQUIREMENT

Sl No PARTICULARS Year 1 Year 2 Year 3 Year 4 Year 5

Current Assets
1 Inventory 7 06 920.00 7 78 000.00 8 36 000.00 8 78 000.00 9 22 000.00
2 Debtors Nil Nil Nil Nil Nil
Total 7 06 920.00 7 78 000.00 8 36 000.00 8 78 000.00 9 22 000.00

3 Working Capital Loan 5 00 000.00 5 00 000.00 5 00 000.00 5 00 000.00 5 00 000.00

Working Capital Margin 2 06 920.00 2 78 000.00 3 36 000.00 3 78 000.00 4 22 000.00
Margin % 29% 36% 40% 43% 46%

Interest rate 14.00% 14.00% 14.00% 14.00% 14.00%

4 Interest expense 70 000.00 70 000.00 70 000.00 70 000.00 70 000.00
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PARTICULARS OF CAPITAL EXPENDITURE

I PLANT AND MACHINERY

Sl No Particulars Total Cost

1 Utensils and Vessels 3 00 000.00
2 Cooking Apparatus/Equipments
Alpham
Grill 1 50 000.00
Tandoori
3 Bain marie 60 000.00
4 Generator 2 00 000.00
5 Chiller / Freezer 70 000.00
6 Other fixed assets 20 000.00
TOTAL 8 00 000.00

II FURNITURE & FIXTURES

Sl No Particulars No of Items Unit Cost Total Cost

1 Wood work on cash counter 40 000.00
2 Interior Decoration 1 50 000.00
3 Table 20.00 5 000.00 1 00 000.00
4 Round Table 5.00 5 000.00 25 000.00
5 Chairs 80.00 1 500.00 1 20 000.00
(@ 4 person per table) 20.00 1 000.00 20 000.00
6 Steel Rack 30 000.00
TOTAL 4 85 000.00

III BUILDING RENOVATION

Sl No Particulars Total Cost

1 Aluminium Fabrication work for AC Cabin 1 50 000.00
2 Steel work 1 00 000.00
3 Bathroom & Kitchen 1 50 000.00
TOTAL 4 00 000.00
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STATEMENT SHOWING COST OF INVENTORY

Cost Per Days in Value of

Sl No PARTICULARS Unit Units Stock Inventory Yearly Purchase
1 FISH AND MEAT PRODUCTS
FISH 300.00 15.00 Kg 45.00 2 02 500.00 16 20 000.00
CHICKEN 100.00 15.00 Kg 40.00 60 000.00 5 40 000.00
NAADAN DUCK 240.00 5.00 Nos 30.00 36 000.00 4 32 000.00
NAADAN CHICKEN 120.00 5.00 Nos 30.00 18 000.00 2 16 000.00
MUTTON LIVER 340.00 3.00 Kg 30.00 30 600.00 3 67 200.00
BEEF 150.00 5.00 Kg 30.00 22 500.00 2 70 000.00
PORK 250.00 5.00 Kg 40.00 50 000.00 4 50 000.00
MUTTON 350.00 5.00 Kg 45.00 78 750.00 6 30 000.00

2 VEGETABLES 1.00 2 500.00 9 00 000.00

3 ONION 3.00 1 000.00 1 20 000.00

4 COCONUT 11.00 20.00 No 20.00 4 400.00 79 200.00

5 MILK 18.00 15.00 Lt 1.00 270.00 97 200.00

6 CURD 20.00 10.00 Lt 1.00 200.00 72 000.00

7 FRUITS 1.00 1 000.00 3 60 000.00

8 SPICES 7.00 2 000.00 1 03 000.00

9 RICE 45.00 18.00 Kg 60.00 48 600.00 2 91 600.00

10 BASMATI RICE 75.00 15.00 Kg 60.00 67 500.00 4 05 000.00

11 FLOUR 55.00 20.00 Kg 50.00 55 000.00 3 96 000.00

12 COOKING OIL 90.00 2.00 Lt 45.00 8 100.00 65 000.00

SUNFLOWER 120.00 2.00 Lt 45.00 10 800.00 86 000.00
PALM OIL 80.00 2.00 Lt 45.00 7 200.00 58 000.00

TOTAL 7 06 920.00 75 58 200.00

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STATEMENT SHOWING EMPLOYEE COST

Salary Per
PARTICULARS Month Staff Total Salary Annual Salary
Main Cook 15 000.00 2.00 30 000.00 3 60 000.00
Suppliers 9 000.00 3.00 27 000.00 3 24 000.00
Tea/Juice Makers 9 000.00 1.00 9 000.00 1 08 000.00
Plate Washing 9 000.00 1.00 9 000.00 1 08 000.00
Cleaning 9 000.00 2.00 18 000.00 2 16 000.00

Cashier 7 000.00 2.00 14 000.00 1 68 000.00

Tandoori 15 000.00 2.00 30 000.00 3 60 000.00

1 37 000.00 16 44 000.00
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STATEMENT SHOWING TERM LOAN REPAYMENT

Opening Closing Interest @

Particulars Balance Repayment balance 13.5% Total

Year 0 5 00 000.00 .00 5 00 000.00 .00 .00

Year 1 5 00 000.00 75 200.00 4 24 800.00 63 000.00 1 38 200.00

Year 2 4 24 800.00 86 200.00 3 38 600.00 52 000.00 1 38 200.00

Year 3 3 38 600.00 98 200.00 2 40 400.00 40 000.00 1 38 200.00

Year 4 2 40 400.00 1 12 200.00 1 28 200.00 26 000.00 1 38 200.00

Year 5 1 28 200.00 1 28 200.00 .00 10 000.00 1 38 200.00

 PROJECTED BALANCE SHEET FOR THE NEXT FIVE YEARS

Pre-
Operation
Particulars Period Year 1 Year 2 Year 3 Year 4 Year 5

I OWNER'S CAPITAL
1 Proprietrix Capital 16 15 000.00 16 15 000.00 20 06 720.00 22 55 920.00 25 37 920.00 28 35 920.00
Add : Workings Capital Margin .00 2 00 000.00 .00 .00 .00 .00
Add : Profit for the year .00 4 78 720.00 6 23 200.00 7 06 000.00 7 46 000.00 8 31 000.00
Less: Drawings .00 2 87 000.00 3 74 000.00 4 24 000.00 4 48 000.00 4 99 000.00
16 15 000.00 20 06 720.00 22 55 920.00 25 37 920.00 28 35 920.00 31 67 920.00

II SECURED LOAN

2 Proposed Term Loan

State Bank of Travancore, Ravipuram Branch 5 00 000.00 4 24 800.00 3 38 600.00 2 40 400.00 1 28 200.00 .00
(Secured by Plant and Machinery and mortgage
of Land and Building in the name of the
Proprietrix)

3 Proposed Working Capital Loan

Cash Credit from State Bank of Travancore,
Ravipuram Branch .00 5 00 000.00 5 00 000.00 5 00 000.00 5 00 000.00 5 00 000.00
(Secured by Inventory and mortgage of Land
and Building in the name of the Proprietrix) 5 00 000.00 9 24 800.00 8 38 600.00 7 40 400.00 6 28 200.00 5 00 000.00

TOTAL 21 15 000.00 29 31 520.00 30 94 520.00 32 78 320.00 34 64 120.00 36 67 920.00

III FIXED ASSETS

4 Original Cost 16 85 000.00 16 85 000.00 16 85 000.00 16 85 000.00 16 85 000.00 16 85 000.00
Less Accumulated Depreciation .00 2 09 000.00 3 91 000.00 5 49 000.00 6 87 000.00 8 08 000.00
Written Down Value 16 85 000.00 14 76 000.00 12 94 000.00 11 36 000.00 9 98 000.00 8 77 000.00

IV CURRENT ASSETS
5 Inventory .00 7 06 920.00 7 78 000.00 8 36 000.00 8 78 000.00 9 22 000.00
6 Cash and Bank .00 3 18 600.00 4 62 520.00 5 96 320.00 7 18 120.00 8 18 920.00
7 Debtors .00 .00 .00 .00 .00 .00
8 Deposits, Loans and Advances 4 30 000.00 4 30 000.00 5 60 000.00 7 10 000.00 8 70 000.00 10 50 000.00
4 30 000.00 14 55 520.00 18 00 520.00 21 42 320.00 24 66 120.00 27 90 920.00
Less :
V CURRENT LIABILITIES .00 .00 .00 .00 .00 .00

Net Current Assets 4 30 000.00 14 55 520.00 18 00 520.00 21 42 320.00 24 66 120.00 27 90 920.00

TOTAL 21 15 000.00 29 31 520.00 30 94 520.00 32 78 320.00 34 64 120.00 36 67 920.00

- - - - - -
For M/s PACHILA RESTAURANT

Mrs Sajana Saji

(Proprietrix)
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PROJECTED PROFIT AND LOSS ACCOUNT FOR

THE NEXT FIVE YEARS

PARTICULARS Year Ended 1 Year Ended 2 Year Ended 3 Year Ended 4 Year Ended 5

I Turnover per day 30,000.00 33,000.00 35,500.00 37,300.00 39,400.00

No of days 360.00 360.00 360.00 360.00 360.00

II Turnover
1 Sale of Food 1 08 00 000.00 1 18 80 000.00 1 27 80 000.00 1 34 28 000.00 1 41 84 000.00
TOTAL 1 08 00 000.00 1 18 80 000.00 1 27 80 000.00 1 34 28 000.00 1 41 84 000.00

III Cost of Goods Sold

2 Opening stock .00 7 06 920.00 7 78 000.00 8 36 000.00 8 78 000.00
3 Purchase of meat, vegetable and other food items 75 58 200.00 76 07 080.00 81 60 000.00 85 49 000.00 89 76 000.00
4 Less : Closing stock 7 06 920.00 7 78 000.00 8 36 000.00 8 78 000.00 9 22 000.00
68 51 280.00 75 36 000.00 81 02 000.00 85 07 000.00 89 32 000.00
IV Direct expense
5 Cost of Fuel/Biogas 1 24 000.00 1 36 400.00 1 50 000.00 1 65 000.00 1 82 000.00
6 Cost of Charcoal for Tandoori 24 000.00 26 400.00 29 000.00 32 000.00 35 000.00
7 Employee Benefit Expense 16 44 000.00 18 08 000.00 19 89 000.00 21 88 000.00 24 07 000.00
17 92 000.00 19 70 800.00 21 68 000.00 23 85 000.00 26 24 000.00
V Administrative Expense
8 Electricity and Water Charges 3 60 000.00 3 60 000.00 3 60 000.00 3 60 000.00 3 60 000.00
9 Repairs and Maintenance 60 000.00 1 00 000.00 1 50 000.00 1 50 000.00 1 50 000.00
10 Rent of Building 6 60 000.00 6 60 000.00 6 60 000.00 6 60 000.00 6 60 000.00
11 Rent of equipments on lease 36 000.00 36 000.00 36 000.00 36 000.00 36 000.00
12 Other Expense 20 000.00 30 000.00 30 000.00 30 000.00 30 000.00
14 Depreciation 2 09 000.00 1 82 000.00 1 58 000.00 1 38 000.00 1 21 000.00
13 45 000.00 13 68 000.00 13 94 000.00 13 74 000.00 13 57 000.00

TOTAL 99 88 280.00 1 08 74 800.00 1 16 64 000.00 1 22 66 000.00 1 29 13 000.00

VI Operating Profit 8 11 720.00 10 05 200.00 11 16 000.00 11 62 000.00 12 71 000.00

Operating Profit Margin 8% 8% 9% 9% 9%

VII Interest and Finance Charges

15 On Term Loan @ 13.5% 63 000.00 52 000.00 40 000.00 26 000.00 10 000.00
16 On Working Capital Loan @ 14% 70 000.00 70 000.00 70 000.00 70 000.00 70 000.00
1 33 000.00 1 22 000.00 1 10 000.00 96 000.00 80 000.00

VIII Net Profit before tax 6 78 720.00 8 83 200.00 10 06 000.00 10 66 000.00 11 91 000.00
Net Profit Margin 6% 7% 8% 8% 8%

17 Income tax 2 00 000.00 2 60 000.00 3 00 000.00 3 20 000.00 3 60 000.00

IX Net Profit transferred to Proprietrix's Capital 4 78 720.00 6 23 200.00 7 06 000.00 7 46 000.00 8 31 000.00

For M/s PACHILA RESTAURANT

Mrs Sajana Saji

(Proprietrix)
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PROJECTED CASH FLOW STATEMENT FOR THE NEXT FIVE YEARS

Pre-Operative
PARTICULARS Year 1 Year 2 Year 3 Year 4 Year 5
Period

Opening Cash & Bank Balance (A) .00 .00 3 18 600.00 4 62 520.00 5 96 320.00 7 18 120.00

Cash Inflow
Income from sales .00 1 08 00 000.00 1 18 80 000.00 1 27 80 000.00 1 34 28 000.00 1 41 84 000.00
(B) .00 1 08 00 000.00 1 18 80 000.00 1 27 80 000.00 1 34 28 000.00 1 41 84 000.00

Cash Outflows
Investing and Operating activities
New Fixed Assets Purchased 16 85 000.00 .00 .00 .00 .00 .00
Deposits Loans and Advances 4 30 000.00 .00 1 30 000.00 1 50 000.00 1 60 000.00 1 80 000.00
New Increase in Inventory .00 7 06 920.00 71 080.00 58 000.00 42 000.00 44 000.00
Cost of Goods sold .00 68 51 280.00 75 36 000.00 81 02 000.00 85 07 000.00 89 32 000.00

Operating activities
Employee Benefit expense .00 16 44 000.00 18 08 000.00 19 89 000.00 21 88 000.00 24 07 000.00
Other direct expense .00 1 48 000.00 1 62 800.00 1 79 000.00 1 97 000.00 2 17 000.00
Other establishment expense .00 13 36 000.00 14 46 000.00 15 36 000.00 15 56 000.00 15 96 000.00
(C) 21 15 000.00 1 06 86 200.00 1 11 53 880.00 1 20 14 000.00 1 26 50 000.00 1 33 76 000.00

Operating cash balance (A) +(B) - (C) - 21 15 000.00 1 13 800.00 10 44 720.00 12 28 520.00 13 74 320.00 15 26 120.00

Financing activities - Outflow

Term Loan repayment .00 - 75 200.00 - 86 200.00 - 98 200.00 - 1 12 200.00 - 1 28 200.00
Promoter's Drawings .00 - 2 87 000.00 - 3 74 000.00 - 4 24 000.00 - 4 48 000.00 - 4 99 000.00
Interest and Finance charges .00 - 1 33 000.00 - 1 22 000.00 - 1 10 000.00 - 96 000.00 - 80 000.00
Financing activities - Inflow
Promoter's Capital 16 15 000.00 .00 .00 .00 .00 .00
Promoter's Capital - Working Capital Margin .00 2 00 000.00 .00 .00 .00 .00
Term Loan 5 00 000.00 .00 .00 .00 .00 .00
Working Capital Loan .00 5 00 000.00 .00 .00 .00 .00
21 15 000.00 2 04 800.00 - 5 82 200.00 - 6 32 200.00 - 6 56 200.00 - 7 07 200.00

Closing Cash & Bank Balance .00 3 18 600.00 4 62 520.00 5 96 320.00 7 18 120.00 8 18 920.00
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COMPUTATION OF DEPRECIATION FOR NEXT FIVE YEARS

ORIGINAL
Sl No PARTICULARS COST DEP % Year 1 Year 2 Year 3 Year 4 Year 5

1 BUILDING 4 00 000.00 10% 40 000.00 36 000.00 32 000.00 29 000.00 26 000.00

2 PLANT AND MACHINERY 8 00 000.00 15% 1 20 000.00 1 02 000.00 87 000.00 74 000.00 63 000.00

3 FURNITURE AND FIXTURES 4 85 000.00 10% 49 000.00 44 000.00 39 000.00 35 000.00 32 000.00

16 85 000.00 2 09 000.00 1 82 000.00 1 58 000.00 1 38 000.00 1 21 000.00

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CALCULATION OF DEBT SERVICE COVERAGE RATIO

Paticulars Year 1 Year 2 Year 3 Year 4 Year 5

Profit after tax 4 78 720.00 6 23 200.00 7 06 000.00 7 46 000.00 8 31 000.00

Add
Interest on Term Loan 63 000.00 52 000.00 40 000.00 26 000.00 10 000.00
Depreciation Expense 2 09 000.00 1 82 000.00 1 58 000.00 1 38 000.00 1 21 000.00
Total 7 50 720.00 8 57 200.00 9 04 000.00 9 10 000.00 9 62 000.00

Commitments
Interest on Term Loan 63 000.00 52 000.00 40 000.00 26 000.00 10 000.00
Repayment of Term Loan 75 200.00 86 200.00 98 200.00 1 12 200.00 1 28 200.00
Total 1 38 200.00 1 38 200.00 1 38 200.00 1 38 200.00 1 38 200.00

DSCR 5.43 6.20 6.54 6.58 6.96

Average DSCR 6.34

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RATIO ANALYSIS

RATIO Year 1 Year 2 Year 3 Year 4 Year 5

PROFITABILITY RATIO

Operating Profit Margin (Operating Profit X 100 )/ Sales 8% 8% 9% 9% 9%

Net Profit Margin (Net Profit X 100 )/ Sales 6% 7% 8% 8% 8%

TURNOVER RATIO

Inventory Turnover Ratio Cost of Goods Sold/ Avg. Inventory 9.69 10.15 10.04 9.93 9.92

Debtors Turnover Ratio Sales / Avg Receivable Nil Nil Nil Nil Nil

Fixed Assets Turnvover Ratio Sales / Avg Fixed Assets 6.83 8.58 10.52 12.58 15.13

SOLVENCY RATIO
Current Assets / Current Liabilities
Current Ratio (incl Working Capital Loan) 2.91 3.60 4.28 4.93 5.58

Debt Equity Ratio Total Debt / Equity 0.71 0.59 0.49 0.40 0.32

Interest Coverage Ratio EBIT / Interest Expense 6.10 8.24 10.15 12.10 15.89

PERFORMANCE RATIO
Net Profit after Tax / Avg Owner's
Return on Investment Capital 26.44% 29.24% 29.45% 27.76% 27.68%

Return on Net Worth Net Profit after Tax / Avg Net Worth 21.06% 24.80% 26.28% 25.98% 27.10%
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CAPITAL BUDGETING ANALYSIS

Internal Rate of Return (after tax) 16.86%

Internal Rate of Return (before tax) 24.08%

CF net of Discounting Discounted Cumulative

Capital Outflow Factor 16.86% C.F C.F
Year 0 (2,115,000.00) 1.00 (2,115,000.00) (2,115,000.00)
Year 1 14,504.00 0.86 12,411.74 (2,102,588.26)
Year 2 831,040.00 0.73 608,571.25 (1,494,017.01)
Year 3 891,800.00 0.63 558,858.33 (935,158.69)
Year 4 910,000.00 0.54 488,000.65 (447,158.03)
Year 5 974,400.00 0.46 447,158.03 0.00

After Tax
Operating Operating Operating
profit Depreciation Cash Flow Cash Flow
Year 0 - - - -
Year 1 811,720.00 209,000.00 1,020,720.00 714,504.00
Year 2 1,005,200.00 182,000.00 1,187,200.00 831,040.00
Year 3 1,116,000.00 158,000.00 1,274,000.00 891,800.00
Year 4 1,162,000.00 138,000.00 1,300,000.00 910,000.00
Year 5 1,271,000.00 121,000.00 1,392,000.00 974,400.00

Total Outflow
Owner's contribution 1,815,000.00
Working Capital Loan 500,000.00
Term Loan 500,000.00
2,815,000.00
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STATEMENT OF EXPECTED REVENUE

Collection Annual Turnover

Particulars Per Day Year 1 Year 2 Year 3 Year 4 Year 5
Breakfast 5 225.00 18 81 000.00 20 70 000.00 22 30 000.00 23 40 000.00 24 60 000.00
Lunch 10 500.00 37 80 000.00 41 60 000.00 44 70 000.00 46 90 000.00 49 20 000.00
Dinner 8 400.00 30 24 000.00 33 30 000.00 35 80 000.00 37 60 000.00 39 50 000.00
Tandoori 7 000.00 25 20 000.00 27 70 000.00 29 80 000.00 31 30 000.00 32 90 000.00
Refreshments 2 000.00 7 20 000.00 7 90 000.00 8 50 000.00 8 90 000.00 9 30 000.00
Total 33 125.00 1 19 25 000.00 1 31 20 000.00 1 41 10 000.00 1 48 10 000.00 1 55 50 000.00

ESTIMATE OF DAILY COLLECTION

Price No of Orders Collection
BREAKFAST
Dosa 30.00 30.00 900.00
Poori 35.00 25.00 875.00
Porotta 45.00 25.00 1 125.00
Chappati 45.00 25.00 1 125.00
Appam 40.00 30.00 1 200.00
5 225.00
LUNCH
Meals 50.00 70.00 3 500.00
Fish Curry/ Beef Curry etc.. 60.00 40.00 2 400.00
Biriyani 80.00 45.00 3 600.00
Others 40.00 25.00 1 000.00
10 500.00
DINNER
Naan/ Chappati/Porotta ( In Nos.) 40.00 70.00 2 800.00
Biriyani 80.00 70.00 5 600.00
8 400.00
TANDOORI
100.00 70.00 7 000.00

REFRESHMENTS
Tea/Coffee/Fresh Juices/Ice Cream etc.. 2 000.00

TOTAL 33 125.00