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The document outlines a working capital estimate totaling Rs. 17,01,300, detailing the components such as raw materials, stock in process, finished goods, and receivables. It includes a projected profit and loss account over five years, indicating increasing sales and net profit, with net profit reaching Rs. 32,19,325.19 by the fifth year. Additionally, it calculates the Debt Service Coverage Ratio (D.S.C.R), showing a healthy ratio increasing from 2.13 to 3.98 over the same period.

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20 views

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The document outlines a working capital estimate totaling Rs. 17,01,300, detailing the components such as raw materials, stock in process, finished goods, and receivables. It includes a projected profit and loss account over five years, indicating increasing sales and net profit, with net profit reaching Rs. 32,19,325.19 by the fifth year. Additionally, it calculates the Debt Service Coverage Ratio (D.S.C.R), showing a healthy ratio increasing from 2.13 to 3.98 over the same period.

Uploaded by

kashyapsomvir2007
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Working Capital Estimate :

Element of Working Capital No of Days Basis Amount in Rs.


Raw Material 12 Material Cost 1,33,300.00

Stock in process 2.33 Production Cost 42,100.00

Finished goods 26 Manufacturing Cost 4,89,900.00

Receivable by 55 Manufacturing Cost 10,36,000.00

Total Working Capital Requirement 17,01,300.00


Financial Analysis
Projected Profit & Loss Account :
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Sales / Receipts 77,00,000.00 82,50,000.00 88,00,000.00 93,50,000.00 99,00,000.00
77,00,000.00 82,50,000.00 88,00,000.00 93,50,000.00 99,00,000.00
Manufacturing Expenses
Rawmaterials 28,00,000.00 30,00,000.00 32,00,000.00 34,00,000.00 36,00,000.00
Wages 13,52,400.00 14,49,000.00 15,45,600.00 16,42,200.00 17,38,800.00
Repairs & Maintenance 1,92,500.00 2,06,250.00 2,20,000.00 2,33,750.00 2,47,500.00
Power & Fuel 19,250.00 20,625.00 22,000.00 23,375.00 24,750.00
Other Overhead Expenses 1,92,500.00 2,06,250.00 2,20,000.00 2,33,750.00 2,47,500.00
Depreciation 4,50,000.00 3,82,500.00 3,25,125.00 2,76,356.25 2,34,902.81
Production Cost 50,06,650.00 52,64,625.00 55,32,725.00 58,09,431.25 60,93,452.81
Administrative Expenses
Salary 1,20,000.00 1,20,000.00 1,20,000.00 1,20,000.00 1,20,000.00
Postage Telephone Expenses 7,700.00 8,250.00 8,800.00 9,350.00 9,900.00
Stationery & Postage 15,400.00 16,500.00 17,600.00 18,700.00 19,800.00
Advertisement & Publicity 7,700.00 8,250.00 8,800.00 9,350.00 9,900.00
Workshed Rent - - - - -
Other Miscellaneous Expenses 77,000.00 82,500.00 88,000.00 93,500.00 99,000.00
Administrative Cost 2,27,800.00 2,35,500.00 2,43,200.00 2,50,900.00 2,58,600.00
Interest on Bank credit @ 12%
Term Loan 3,24,000.00 2,59,200.00 1,94,400.00 1,29,600.00 64,800.00
Working Capital Loan 2,39,156.00 2,21,794.00 2,35,718.00 2,49,732.00 2,63,822.00
Cost of Sale 57,97,606.00 59,81,119.00 62,06,043.00 64,39,663.25 66,80,674.81
Net Profit Before Tax 19,02,394.00 22,68,881.00 25,93,957.00 29,10,336.75 32,19,325.19
Less Tax - - - -
Net Profit 19,02,394.00 22,68,881.00 25,93,957.00 29,10,336.75 32,19,325.19

CALCULATION OF DEBT SERVICE CREDIT RATIO (D.S.C.R) :


Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Net Profit 19,02,394.00 22,68,881.00 25,93,957.00 29,10,336.75 32,19,325.19
Add :
Depreciation 4,50,000.00 3,82,500.00 3,25,125.00 2,76,356.25 2,34,902.81
TOTAL - A 23,52,394.00 26,51,381.00 29,19,082.00 31,86,693.00 34,54,228.00
Payments :
On Term Loan :
Interest 3,24,000.00 2,59,200.00 1,94,400.00 1,29,600.00 64,800.00
Installment 5,40,000.00 5,40,000.00 5,40,000.00 5,40,000.00 5,40,000.00
On Working Capital
Interest 2,39,156.00 2,21,794.00 2,35,718.00 2,49,732.00 2,63,822.00
TOTAL - B 11,03,156.00 10,20,994.00 9,70,118.00 9,19,332.00 8,68,622.00
D.S.C.R = A/B
2.13 2.60 3.01 3.47 3.98
Average D.S.C.R

PMEGP Project Report Page 6

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