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DETAILED PROJECT REPORT FOR
M/S. abc cult
(A HDPE/PP Fabrics Project)

Bus.Office:
Address
Kalyan Nagar, Mudalapalya
BANGALORE - 560072.

This project has been designed to establish a Trading Concern at Bangalore. It is a Proprietorship concern owned by XYZ. The
proprietor hail from business family and is having experience in this line of business.
Now it is proposed to start operation with financial assistance from a suitable commercial bank.
Hence this project Report is presented.

Prepared by:
Accountnt name
Chartered Accountant
Address Line 1
Address Line 2
BANGLORE - 560040
Phone.No.
Mobile :
e-mail :
 M/S. abc cult

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/S. abc cult
CHAPTER NO. 1
PROJECT AT GLANCE :
1 Name : M/S. abc cult
2 Address : Reg.Office:
Address
Kalyan Nagar, Mudalapalya
BANGALORE - 560072.

3 Nature of Business : Trading

4 Constitution : Proprietorship
Proprietor :

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

Particulars Total
Operational Cost 1,500.00
Furniture & Fittings 3,000.00
Electric & Office Equipemnts 1,500.00
Deposits 500.00
Total 6,500.00

Means of Finance :
Particulars Total
Proprietor Contribution 6,500.00

Total 6,500.00

6 Debt Equity Ratio : - :1

7 Debt Coverage Ratio : 0.00
8 Gross Profit Ratio : 19.86 First Year Operation.
9 Net Profit Ratio : 13.90 First Year Operation.
10 Employment Potential : 10
11 Return on Investment : 0.00 %

Page 5 of 11
 LKR '000 LKR '000

NEED FOR CAPITAL NEED FOR CAPITAL

INVESTMENTS Investment 5,000
Facilities Working Capital 1,500
Furniture 1,000 NEEDED CAPITAL TOTAL 6,500
Coffee machines 500
Kitchen items 900
Electric equipment 1,500
Computers 400
Internet and cable installation 200
Deposits 500
FINANCING
Facilities total 5,000 Own financing 6,500
External financing -
Investments total 5,000 Subsidies -

Working Capital FINANCING TOTAL 6,500

Cost before starting & during 12

months of business
Material Purchase Cost 272
Salary 1,080
Power Charges 12
Administration 50
Marketing 50
Other 36

Working Capital Total 1,500

76.92544
M/S. abc cult
Bangalore

(A HDPE/PP Fabrics Project)

STATEMENT NO. 1

COST OF THE PROJECT AND MEANS OF FINANCE:

The project cost has been estimated at Rs. 6500Lakhs

Brief details of the project cost is given below

Cost of the project : (Rs. In '000)

Particulars Total
Operational Cost 1,500.00
Furniture & Fittings 3,000.00
Electric & Office Equipemnts 1,500.00
Deposits 500.00
Total 6,500.00

Means of Finance :
Particulars Total
Promoters Contribution 6,500.00
Total 6,500.00
M/S. abc cult
STATEMENT NO.2
PROJECTIONS AND PROFITABILITY STATEMENT In '000
Operating years
PARTICULARS
0 1 2 3 4
A.INCOME:
Income from Trading Activities 1,812.00 1,812.00 1,848.24 2,033.06 2,236.37
(50 cups*25 days per month*12)
(The Quanities Sold are expected to increase by 2% in Year
2 and 10% in year 3 and 4)
1,812.00 1,812.00 1,848.24 2,033.06 2,236.37
B. EXPENSES:
Material Purchase Cost and Related cost
(Coffee, Sugar, etc.) 271.80 271.80 277.24 304.96 335.46
Salary 1,080.00 1,134.00 1,190.70 1,250.24 1,312.75
Power Charges 12.00 12.60 13.23 13.89 14.59
Cost of Operations 1,363.80 1,418.40 1,481.17 1,569.09 1,662.79

C. Gross Profit [ A - B ] 448.20 393.60 367.07 463.98 573.58

E. Selling & Admin. Exp. 100.00 105.00 110.25 115.76 121.55

F. Profit before Tax[ C - (D+E) ] 348.20 288.60 256.82 348.22 452.03

G. Income Tax 97.50 80.81 71.91 97.50 126.57

H. Profit after Tax ( F-G ) 250.70 207.79 184.91 250.72 325.46

M/S. abc cult
STATEMENT No.3

CASH - FLOW STATEMENT :

Operating Years
PARTICULARS
0 1 2 3 4
A. Source of Funds :
Profit after Tax 250.70 207.79 184.91 250.72 325.46
Promoters Contribution 6,500.00 - - - -

TOTAL OF ' A ' 6,750.70 207.79 184.91 250.72 325.46

B. Application of Funds :
Furniture & Fittings 3,000.00 - - - -
Gen & Office Equipts, 1,500.00
Deposits 500.00

TOTAL OF ' B ' 5,000.00 - - - -

C. Opening Balance - 1,750.70 1,958.50 2,143.41 2,394.12

D. Net surplus ( A - B ) 1,750.70 207.79 184.91 250.72 325.46

E. Closing Balance 1,750.70 1,958.50 2,143.41 2,394.12 2,719.59

M/S. abc cult
STATEMENT No.4

BALANCE SHEET
(A HDPE/PP Fabrics Project)
Operating Years
PARTICULARS
0 1 2 3 4

A. LIABILITIES :
Capital Account 9.00 6,500.00 6,500.00 6,500.00 6,500.00
Reserves & Surplus 250.70 458.50 643.41 894.12 1,219.59
Secured Loan 52.00 40.00 24.00 - -

TOTAL 311.70 6,998.50 7,167.41 7,394.12 7,719.59

B. ASSETS :
Fixed Assets 4,162.50 3,538.13 3,007.41 2,556.30 2,172.85
Current Assets
Cash & Bank 1,750.70 1,958.50 2,143.41 2,394.12 2,719.59
Deposits 500.00 500.00 2.00 2.00 2.00

TOTAL 6,413.20 5,996.62 5,152.82 4,952.42 4,894.44

M/S. abc cult
Bangalore

(A HDPE/PP Fabrics Project)

ANNEXURE NO.1

DEPRECIATION SCHEDULE: (A HDPE/PP Fabrics Project)

WDV at the year end
PARTICULARS
0 1 2 3 4
1. Furniture & Fittings ### 2,775.00 2,358.75 2,004.94 1,704.20
Depreciation @ 15% 225.00 416.25 353.81 300.74 255.63
WDV ### 2,358.75 2,004.94 1,704.20 1,448.57

4. Genr & Office Equipts ### 1,387.50 1,179.38 1,002.47 852.10

Depreciation @ 15% 112.50 208.13 176.91 150.37 127.81
WDV ### 1,179.38 1,002.47 852.10 724.28

Total Assets
[1+2+3+4] ### 3,538.13 3,007.41 2,556.30 2,172.85

Total Depreciation
[1+2+3+4] 337.50 624.38 530.72 451.11 383.44
M/S. abc cult
ANNEXURE NO.2

BREAK-EVEN ANALYSIS
Years
(A HDPE/PP Fabrics Project)
0 1 2 3 4
A. Receipts 1,812.00 1,812.00 1,848.24 2,033.06 2,236.37

B. Variable cost: 1363.80 1418.40 1481.17 1569.09 1662.79

D. Fixed costs:
Administration Expenses 100.00 105.00 110.25 115.76 121.55
100.00 105.00 110.25 115.76 121.55

E. Contribution [ B - C ] 448.20 393.60 367.07 463.98 573.58

F. P.V.Ratio [ E/B x 100 ] 24.74 21.72 19.86 22.82 25.65

G. Break - even [ Value ]

[ D / F x 100 ] 404.28 483.38 555.12 507.25 473.92

H. Cash Break Even 0.00 0.00 0.00 0.00 0.00

[ Without Depreciation]
M/S. abc cult
ANNEXURE NO.3

INTEREST SCHEDULE : (Rs. in Lakhs)

(A HDPE/PP Fabrics Project) QUARTERS OPENING LOAN CLOSING INTEREST
BALANCE REPAYMENT BALANCE PER QTR.
0 1 56.00 - 56.00 0.00
2 56.00 - 56.00 0.00
3 56.00 2.00 54.00 1.82
4 54.00 2.00 52.00 1.76
I 1 52.00 3.00 49.00 1.69
2 49.00 3.00 46.00 1.59
3 46.00 3.00 43.00 1.50
4 43.00 3.00 40.00 1.40
II 1 40.00 4.00 36.00 1.30
2 36.00 4.00 32.00 1.17
3 32.00 4.00 28.00 1.04
4 28.00 4.00 24.00 0.91
III 1 24.00 6.00 18.00 0.78
2 18.00 6.00 12.00 0.59
3 12.00 6.00 6.00 0.39
4 6.00 6.00 - 0.20

NOTE : Interest on Term Loan is calculated at 13% per annum liquidated in

4 year
(Rs. in Lakhs)
INTEREST
P.A.

3.58

6.18

4.42

1.95
M/S. abc cult
ANNEXURE NO.4

DEBT SERVICE COVERAGE RATIO :

Operating Years
(A HDPE/PP Fabrics Project)
0 1 2 3 4
A. SOURCES :
Profit after tax 250.70 207.79 184.91 250.72 325.46
Depreciation - - - - -
Interest on term loan - - - - -
TOTAL OF ' A ' - - - - -

B DEBT :
Term loan installment - - - - -
Interest on Term Loan - - - - -

TOTAL OF ' B ' - - - - -

C Debt Service Coverage Ratio

DSCR [A/B] - - - - -

D Average DSCR 0.00

M/S. abc cult
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
0 1 2 3 4
Profit before tax 348.20 288.60 256.82 348.22 452.03

Depreciation - - - - -

Interest on Term Loan - - - - -

- - - - -

# Average Return -

# Capital Employed 6,500.00

# Return on Investment - %
M/S. abc cult
ANNEXURE NO.6
Assumption and workings notes to the Financial Statements of the Project Report:
1 Revenue In Lakhs
Sale of HDPE/pp Fabrics
Total Quantity Estimated to be sold for a month : 50 tons
Sale value of each Ton : 1.3
Monthly Revenue : 65.00
Yearly Revenue 780.00
First year Revenue for 6 months 390.00
Every year the Revenue is estimated to increase
by 20%.

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
S.No. Category of Employee No.of 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