M/s Pioneer Plastitech

PROJECT REPORT
Proposal for Sanction of 1. Fund Based Working Capital Limit of Rs. 175.00 Lacs.
2. Term Loan of Rs. 50.00 Lacs.
Total exposure aggregating to Rs.225.00 Lacs.
COMPANY PROFILE:1
2
3
3

Name of the Unit

Constitution
PAN No.
Address of Company
Reg. Office:
Factory:

M/s Pioneer Plastitech

Proprietorship Firm
AMHPS1782A
7, Swagat Appartment, Near Dabhel Check
Post, Nani Daman 396210
Plot No. 257/16 Goa IDC, Kachigam, Daman396210.

4
5
6

Name of the Proprietor

S.S.I Registration No.
Activity

Mr. Hemal Sureshkumar Shah

DA/ 7612
Existing: Trading of Plastic crates, Drums,
Bucket, Tank and all kind of Plastic & Rubber
Goods.
Proposed: Manufacturing of Plastic Crates,
Blow Molding Containers and Plastic Pallets.

M/s Pioneer Plastitech

INTRODUCTION
M/s Pioneer Plastitech, a Proprietory concern of Mr Hemal Shah, came into
existence since 18th September 2004, at Shop No.7, Swagat Apartment, Dabhel
Check Post, Nani Daman and is currently engaged in the business of trading of
Plastic crates, Drums, Bucket, Tank and all kind of Plastic & Rubber Goods.
Looking to the Growth and demand of the product in market, the Proprietor of
the Firm, Mr. Hemal Sureshkumar Shah, has decided to expand his business by
getting himself involved in the manufacturing of Plastic Crates, Blow Molding
Containers and Plastic Pallets.
BACKGROUND OF THE PROPRIETOR:
Mr. Hemal Sureshkumar Shah a B Com graduate, aged 33 years, having
experience of around 7 years is engaged in this line of activity of Trading of Plastic
crates, Drums, Bucket, Tank and all kind of Plastic & Rubber Goods. During this
period the proprietor has developed very good relation with large no of traders. He
has good experience in this industry and aware with the technology involved. He
is well versed with overall production process.
ABOUT THE LOCATION
The Firm located at Plot No. 257/16 Goa IDC, Kachigam, and Daman-396210.
The factory site is in the name of firm itself. Other required infrastructure is
easily available.
Locational Advantages:
1) The project is being set up in a well-developed industrial area having very
good infrastructure facilities.
2)

Daman is well developed industrial area concentrated with very large, large
and small industries. Ample of manpower is available here.

3) Daman is very well connected by all season roads. It is very near to Vapi
station which is about 12 Kms from the site. Vapi is on the NH 8 running
from Mumbai to Ahmedabad. Moreover, in Daman almost all the big
transporters offices are located.
4) Market of finish products is spread throughout India as well as outside
India. These markets can be reached in all weather by roads. So finished
goods can be transported at low transport cost.
2

M/s Pioneer Plastitech

Availability of Raw Materials and Utilities
RAW MATERIALS
Basic raw materials for manufacturing of Plastic Crates, Blow Molding Containers
and Plastic Pallets are HDPE and Master Batch. All the raw materials are
indigenously available within a months time.
Suppliers List: Name of the Suppliers
Prince Container Pvt. Ltd.
Rita Industries
The Supreme Ind Unit III
Umiya Plastic Ind.
Union Quality Plastic Ltd.

Location
Somnath Road Daman
Dabhel Check Post Daman
Jalgaon Nashik
Ankleshwar
Umbergaon

UTILITIES:
Power
The Firm has adequate power connection required for the machinery.
Water
The unit is having adequate water supply.
MANPOWER
The manpower required at the firm is adequately availed. The manpower is easily
available.
Employment
Supervisory
Administrative /office staf
Skilled labour
Unskilled Labour
Total

Present
1
1
3
5
10

Proposed
1
1
5
10
17

MARKETING ASPECTS OF THE COMPANY:

The firm has proposed to sell its products directly to the customers.
Customers: 3

M/s Pioneer Plastitech

Cytech Coating Pvt. Ltd.
Colourqip
Konark Herbal & Health Care
KLJ Plasticizers Ltd.
Anchor Electricals Pvt. Ltd. III
Givaudan (India) Pvt. Ltd.
Advance Pesticides
Camlin Ltd.
HI Tech Coating
HI-Tech Litho

Sarigam
Vapi
Daman
Silvassa
Bhimpore Daman
Daman
Nashik
Boisar
Vapi
Sarigam

Manufacturing Process and Flow Chart: Flow Chart: Input Raw material
Master Batch
Material Mixing Unit
Blow Moulding Machine
Finishing and Quality Assurance check
Printing if required
Ready for Dispatch
Manufacturing Process: The raw material for manufacture of containers of diferent sizes HDPE/LDPE is
mixed along with the master batch and additives if any in the material mixing
unit.
This composition is fed to the blow molding machine for processing. The material
is processed through the machine extruder which is maintained at 190 to 240
degree Celsius temperature.
The extruded material which comes from the machine is clamped in the mould.
4

M/s Pioneer Plastitech

In the mould the air is blown and the formation of the article in the mould takes
place.
The article thus formed is taken out from the mould and finishing and weighing
is done.
After QA check the material if required is printed for the matter as required by
the customer and then is ready for dispatch
Industrial Scenario:Plastic is one of the most widely used commodities of the 21st century. It has
helped to save the world of its natural resources by becoming an easy
replacement to most of them like wood, metals, and other elements. Plastic
contributed to 5.6 percent of the total chemical output amounting to $ 90 million
USD in the year 2002.
In the year 2001, the global polymer capacity was 170 MMTA and is growing at a
rate of 10.5 percent per annum. Out of this, more than 35 percent of the capacity
is in Asian region having a demand of 64 MMTA for major polymers, which is
growing at a rate of 7.2 percent per annum. Plastics in packaging have proved
useful for a number of reasons, including the ease with which they can be
formed, their high quality, and the freedom of design to which they lend
themselves. Plastic containers are extremely resistant to breakage and thus ofer
safety to consumers along with reduction of breakage losses at all levels of
distribution and use. Plastic containers for pharmaceutical products are
primarily made from the following polymers: polyethylene, polypropylene,
polyvinyl chloride, polystyrene, and to a lesser extent, polymethyl methacrylate,
polyethylene terephthalate, polytrifluoroethylene, the amino formaldehydes, and
polyamides. Plastic containers consist of one or more polymers together with
certain additives. Those manufactured for pharmaceutical purposes must be free
of substances that can be extracted in significant quantities by the product
contained. Thus, the hazards of toxicity or physical and chemical instability are
avoided. The amount and nature of the additives are determined by the nature of
the polymer, the process used to convert the plastic into the containers, and the
service expected from the container. For plastic containers in general, additives
may consist

of antioxidants, antistatic agents, colors, impact modifiers,

M/s Pioneer Plastitech

lubricants, plasticizers, and stabilizers. Mold release agents are not usually used
unless they are required for a specific purpose.
Advantages of Plastic Containers:
Plastic containers have a number of inherent practical advantages over other
containers or dispenses. They are:

Low in cost

Light in weight

Durable

Pleasant to touch

Flexible facilitating product dispensing

Odorless and inert to most chemicals

Unbreakable

Leak proof

Able to retain their shape throughout their use.

They have a unique 'suck-back' feature, which prevents product doze.

Modest improvements are set to occur for the industry over the next five years, as
future demand for bottled beverages takes of. While the rising price of plastic will
threaten manufacturers, improving economic conditions and some strategic
mergers and acquisitions will result in a more favorable environment. However,
increased competition from imports will have a negative efect on domestic
operators, as manufacturers move more of their production facilities overseas to
take advantage of low-cost labour.
Overall, there are few barriers to entry in this industry. There are no licensing
requirements, government regulations or resource constraints that are significant
enough to prevent firms from entering the Plastic Bottle and Container
Manufacturing industry.
There are, however, some factors that may deter entry. For example, a significant
financial investment is required to acquire, maintain and update plant and
equipment. In addition, research and development is necessary for product
innovation to expand the use of plastic products and increase demand. In order
to efectively compete, an entrant should be committed to spending a significant
amount on research and development.
6

M/s Pioneer Plastitech

At present there are 25,000 to 30,000 plastic processing units in India. The
number is bound to grow in the years to come due to the ever increasing demand
of plastics in the country. Today, plastics find application in almost all walks of
life from consumer plastics, engineering plastics, agriculture, or packaging.
However, the per capita consumption of plastics in the country is as low as 3 kgs
as compared to the world average of 20 kgs. It is expected that this will be
growing to 5.5 kgs by the year 2004, becoming the biggest driving factor for the
industry in the near future. The plastic exports from India have been growing at a
rate of 15 percent per annum and is expected to be so for the forecast period also.
Installed and Utilized Capacity: 2 Ltr Machine
Particulars
Installed Capacity
Capacity

2012-13
3.60
60%

2015-16
3.60
75%

2016-17
3.60
80%

2017-18
3.60
85%

Utilisation %
Production Lacs

2.16

2.34

2.52

2.70

2.88

3.06

kg
Less: Closing

0.12

0.13

0.14

0.15

0.16

0.17

stock
Add: Opening

0.12

0.13

0.14

0.15

0.16

stock
Saleable Qty -

2.04

2.33

2.51

2.69

2.87

3.05

265.41

302.92

326.32

349.72

373.12

396.52

Particulars
Installed Capacity
Capacity

2012-13
1.80
60%

2013-14
1.80
65%

2014-15
1.80
70%

Utilisation %
Production Lacs

1.08

1.17

1.26

1.35

1.44

1.53

kg
Less: Closing

0.06

0.06

0.07

0.07

0.08

0.08

stock
Add: Opening

0.06

0.06

0.07

0.07

0.08

Lacs Kg.
Sales @ Rs.

2013-14 2014-15
3.60
3.60
65%
70%

130.00/ Kg
5 Ltr Machine
2015-16 2016-17
1.80
1.80
75%
80%

2017-18
1.80
85%

stock
7

M/s Pioneer Plastitech

Saleable Qty Lacs Kg.
Sales @

1.02

1.17

1.26

1.35

1.44

1.53

142.92

163.11

175.71

188.31

200.91

213.51

Rs.140.00 / Kg
100 Tones
Particulars
Installed

2012-13
0.48

2013-14
0.48

2014-15
0.48

2015-16
0.48

2016-17
0.48

2017-18
0.48

Capacity
Capacity

65%

70%

75%

80%

85%

90%

Utilisation %
Production

0.31

0.34

0.36

0.38

0.41

0.43

Lacs kg
Less: Closing

0.02

0.02

0.02

0.02

0.02

0.02

stock
Add: Opening

0.02

0.02

0.02

0.02

0.02

stock
Saleable Qty -

0.29

0.33

0.36

0.38

0.41

0.43

47.18

53.55

57.39

61.23

65.07

68.91

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

Installed

0.48

0.48

0.48

0.48

0.48

0.48

Capacity
Capacity

65%

70%

75%

80%

85%

90%

Utilisation %
Production

0.31

0.34

0.36

0.38

0.41

0.43

Lacs kg
Less: Closing

0.02

0.02

0.02

0.02

0.02

0.02

stock
Add: Opening

0.02

0.02

0.02

0.02

0.02

stock
Saleable Qty -

0.29

0.33

0.36

0.38

0.41

0.43

50.13

56.90

60.98

65.06

69.14

73.22

Lacs Kg.
Sales @
Rs.160 / Kg

125 tones Machine

Particulars

Lacs Kg.
Sales @
Rs.170 / Kg
Comments:

M/s Pioneer Plastitech

The firm has proposed to manufacture Plastic Crates, Blow Molding Containers
and Plastic Pallets from 1st April 2012. For that proprietor of the firm has decided
to install 2 Ltr, 5 Ltr, 100 tonnes and 125 tonnes new machinery. The installed
capacities for all the Machinery are proposed at 3.60 Lacs Kg PA, 1.80 Lacs Kg
PA, 0.48 Lacs Kg PA, and 0.48 Lacs Kg PA respectively.
The firm has been proposed Capacity at 60% for 2 ltr & 5 Ltr Machines and 65%
for 100 Ltr & 125 Ltr Machine, henceforth it is proposed to utilize the
manufacturing capacity at 70%, 75%, 80% from 2013-14 onwards.
Projected Financial Position of the Company
(Rs. In Lacs)
2009

2010

2011

2012

2013

2014

2015

AUDITED

AUDITED

AUDITED

ESTIMATED

PROJECT

PROJECT

PROJECT

26.55

316.64

791.93

820.00

934.80

981.54

1030.62

0.00
26.55

0.00
331.51

0.00
811.32

0.00
841.33

505.65
1463.91

576.47
1583.82

620.39
1679.40

Profit Before tax

0.00 1148.63
1.36
13.23
1.35
13.23

144.73
25.06
25.06

3.70
26.46
26.46

74.00
46.99
46.99

8.19
51.92
51.92

6.03
55.96
55.96

PBT/ Sales (%)

5.08

3.99

3.09

3.15

3.21

3.28

3.33

Profit After Tax

1.35

13.23

25.06

26.46

46.99

51.92

55.96

Cash Accrual

1.92

13.71

26.60

27.73

58.02

61.27

63.91

Paid Up Capital

8.01

4.81

10.88

85.94

148.40

195.39

247.31

TNW

8.27
8.27

16.91
16.91

35.94
35.94

112.40
112.40

195.39
195.39

247.31
247.31

303.27
303.27

1.81

6.54

2.79

1.78

2.00

1.58

1.29

1.81
5.06
1.64

6.54
19.64
1.20

2.79
27.58
1.31

1.78
53.66
1.33

2.00
114.48
1.36

1.58
136.48
1.41

1.29
152.88
1.45

Particulars
Domestic
Sales(Trading)
Sales
(Manufacturing)
Net Sales
% rise/fall (-) in
net sales
Operating Profit

Adjusted TNW
TOL/TNW
(times)
Adjusted
TOL/TNW
NWC
Current Ratio

M/s Pioneer Plastitech

SALES: The Firm has achieved sales of Rs.26.55 Lacs, Rs. 316.64 Lacs & Rs. 791.93 Lacs
for the F.Y. 2008-09, 2009-10 & 2010-11 respectively. The Firm has Estimated
Sales of Rs. 820.00 Lacs during F.Y. year ending 31.03.12. Presently the firm has
achieved sales of Rs. 718.16 Lacs till 29th February 2012, which is 87.58% of the
estimated sales. Hence the firm is confident to achieve its estimated sales.
Currently the firms in the business of trading but from 1 st April 2012 the Firm
has decided to expand their business by starting manufacturing of Plastic Crates,
Blow Molding Containers and Plastic Pallets. Firm has projected sales of Rs.
1463.91, Rs. 1583.82 & Rs. 1679.40 Lacs for F.Y 2012-13, 2013-14, 2014-15
respectively which is inclusive of both trading and manufacturing. As the Firm
Pioneer Plastitech is an existing Firm & has good creditability in the market &
also has large customer base, so the estimated sales will be easily achieved. Also
the Proprietor of the Firm are engaged in the same line of activity having wide
experience of the same.
PROFIT: The net profit of the Firm is Rs. 25.06 Lacs for the financial year 2010-11. The
estimated / Projected Net Profit of the company is Rs. 26.46 Lacs, Rs. 46.99 Lacs
and Rs. 51.92 Lacs for the years 2011-12 , 2012-13 & 2013-14 respectively which
are reasonable and achievable.
TOL/TNW: The Firm has projected TOL/TNW at 1.78, 2.00 and 1.58 for F.Y. 2011-12, 201213 and 2013-14 which is as per accepted norms and hence accepted and found
satisfactory.
Current Ratio: The Firm has estimated the current ratio of 1.33, 1.36 & 1.41 for 2011-12, 201213 and 2013-14 respectively. The ratio is as per the market trend and hence
satisfactory.
Justification for fund based working capital:
The cash credit limit will be needed by the Firm as he is presently in the business
of trading of Plastic crates, Drums, Bucket, Tank and all kind of Plastic & Rubber
Goods. Looking for the growth and demand of the product Proprietor of the firm
has decided to expand his business by getting himself involved in the
manufacturing of Plastic Crates, Blow Molding Containers and Plastic Pallets.
10

M/s Pioneer Plastitech

Hence for starting of new manufacturing unit firm needed required raw material
to be purchased in bulk. During the initial stage the supplier will provide raw
material on credit basis therefore the firm has to purchase the same on cash. For
that purpose the firm has requested the cash credit of Rs. 175.00 Lacs.
Justification of Working Capital as per the Traditional Method i.e. Second
Method of Lending:
Sales:Particulars

31.03.2011

31.03.2012

31.03.2013

Accepted
for
assessment
31.03.13

Audited
Net sales
Total

Estimated

Projected

811.32

841.33

1463.91

1463.91

811.32

841.33

1463.91

1463.91

Comments:
The Firm has achieved sales of Rs.26.55 Lacs, Rs. 316.64 Lacs & Rs. 791.93 Lacs
for the F.Y. 2008-09, 2009-10 & 2010-11 respectively. The Firm has Estimated
Sales of Rs. 820.00 Lacs during F.Y. year ending 31.03.12. Presently the firm has
achieved sales of Rs. 718.16 Lacs till 29th February 2012, which is 87.58% of the
estimated sales. Hence the firm is confident to achieve its estimated sales.
Currently the firms in the business of trading but from 1 st April 2012 the Firm
has decided to expand their business by starting manufacturing of Plastic Crates,
Blow Molding Containers and Plastic Pallets. Firm has projected sales of Rs.
1463.91, Rs. 1583.82 & Rs. 1679.40 Lacs for F.Y 2012-13, 2013-14, 2014-15
respectively which is inclusive of both trading and manufacturing. As the Firm
Pioneer Plastitech is an existing Firm & has good creditability in the market &
also has large customer base, so the estimated sales will be easily achieved. Also
the Proprietor of the Firm are engaged in the same line of activity having wide
experience of the same.
Accepted
Holding Level

31.03.2011

31.03.2012

31.03.2013

(period in months)

for
assessment
31.03.2013

Particulars

Audited

Estimated

Projected
11

M/s Pioneer Plastitech

Raw Material
Finished goods
Receivables
Creditors

0.17
0.53
1.29

0.26
2.75
1.18

0.21
0.74
2.65
1.15

0.21
0.74
2.65
1.15

Comments:
Raw Material:
The firm has projected raw material holding level at 0.21 month production for
the F. Y. 2012-13. As the firm is under trading business till date hence there was
no raw material level maintained. Now the firm from the F. Y. 2012-13 has
decided to start manufacturing of Plastic Crates, Blow Molding Containers and
Plastic Pallets. So now the firm will maintain raw material level from F.Y. 201213. The projected raw material level is 0.21 months in the F.Y. 2012-13.
Finished Goods:The firm has maintaining finished goods holding level at 0.17 months for the
financial year 2010-11. The firm has estimated/projected finished goods holding
level at 0.26 months / 0.74 months for the F. Y. 2011-12 and 2012-13. The
finished goods holding level has increased in the financial year 2012-13 as the
firm is going to start its manufacturing activity from the 2012-13 hence they will
also main stock of their finished stock.
Receivables:The actual receivable level of the firm was 0.53 months in the financial year
2010-11. Now the firm has projected its receivable level at 2.65 months during
the financial year 2012-13. The receivable level is high as compared to the
previous year as the firm is going to start its manufacturing activity during this
year.
Creditors:The creditors of the firm are at 1.29 months for the financial year 2010-11. The
firm has estimated / projected its creditors level at 1.18 months / 1.15 months
for the financial year 2011-12 & 2012-13. This is as per the norms of the bank.
CHARGEABLE CURRENT ASSETS

12

M/s Pioneer Plastitech

Particulars

Accepted for
31.03.2011

31.03.2012

31.03.13

assessment
31.03.13

Raw Material
Finished goods
Receivables

Audited
0.00
10.13
36.04

Estimated
0.00
16.40
192.47

Projected
22.27
80.31
323.86

22.27
102.59
323.86

46.17

208.87

426.44

426.44

Total

Accepted for

OTHER
CURRENT
ASSETS:

31.03.2011

Particulars

Audited

Estimated

Projected

3.79

3.87

3.93

3.93

65.53

5.54

5.60

5.60

69.32

9.41

9.53

9.53

31.03.2012

31.03.2013

assessment
31.03.13

Cash & Bank

balance
Other
Current
Assets
Total
Comments:

Other current assets consist of Loans & Advances.

Accepted
OTHER

CURRENT

31.03.2011

31.03.2012

31.03.13

LIABILITIES:
Particulars
Creditors
Other

for
assessment
31.03.13

current

Audited
70.27
12.59

Estimated
71.73
18.30

Projected
124.56
21.93

124.56
21.93

82.86

90.03

146.49

146.49

31.03.13

Accepted for
assessment
31.03.13

liabilities
Total
Comments:
Other current liabilities consist of Installments.
NWC AND CURRENT
RATIO:

31.03.2011

31.03.2012

13

M/s Pioneer Plastitech

Particulars
NWC
CURRENT RATIO

Audited
27.58
1.31

Estimated
53.66
1.33

Projected
114.48
1.36

Calculation of MPBF

114.48
1.36

(Rs. in Lacs)
Particulars
Total Current Assets
Other Current Liabilitites (other than bank borrowings)
Working Capital Gap (WCP) (1-2)
Minimum stipulated net working Capital - 25% of total
current assets other than Export Receivables
Actual/projected net working capital
Item 3 minus item 4
Item 3 minus item 5
Maximum permissible bank finance (item 6 or 7 whichever is
less)
Excess borrowings, if any representing short fall in NWC (45)

2012-13
435.98
146.49
289.48
108.99
114.48
180.49
175.00
175.00
-

As per the above calculation MPBF have been worked out at Rs. 175.00 Lacs for
the F.Y. 2013-14.
Assessment of Minimum PBF as per Nayak Committee (turn over method)
(Rs. in Lacs)
Sr. No.
1
2

3
4
5
6

Particulars
Gross Sales
Total Working Capital requirement
being 25% of gross estimated /
projected sales
Of this Bank finance is to the extent of
20% of gross Sales
Minimum net working capital /
promoters margin @ 5% of gross sales
Actual Net working Capital (Current
Assets - Current Liabilities)
MPBF (3-5)

Projected
2012-13
1463.91
365.98

292.78
73.20
114.48
178.30

Justifications for Term Loan

14

M/s Pioneer Plastitech

The Term Loan Limit will be needed by the firm as it is going to start its
manufacturing of Plastic Crates, Blow Molding Containers and Plastic Pallets
from the Financial Year 2012-13. The total cost of the project is Rs. 66.70 Lacs.
Out of which the firm has requested Term Loan of Rs. 50.00 Lacs for the
Purchase of Plant and Machinery.
Details of Cost of Project & Means of Finance: COST OF PROJECT
Land & Building
Plant & Machinery
- Indigenous Machineries
- Imported Machineries
- Motor Vehicles
- Furniture & Fixtures, etc.
Others
Total capital cost of project
Investments
Preliminary Exps./Prov. for
contingencies
Working capital margin
TOTAL COST OF PROJECT
MEANS OF FINANCE
Capital
Add: Net Profit
Long Term/Med Term Borrowings
-- Term Loan
Unsecured loans/Deposits
TOTAL MEANS OF FINANCE

Existing
-

Proposed
80.00

Total
80.00

7.49
0.09
7.35
14.94
-

66.70
146.70
-

66.70
7.49
0.09
7.35
161.64
-

8.24
23.18

10.76
157.46

44.06
205.70

Existing
10.88
25.06

Proposed
50.00
26.46

Total
60.88
51.52

9.87
2.43

50.00
31.00

59.87
33.43

23.18

157.46

205.70

The suppliers of the Plant and Machinery have been finalized. Due care has been
taken in finalization of suppliers after ensuring their creditworthiness and that
the rates quoted by them are competitive. We have since received the quotations
from the said suppliers which are enclosed which depict the higher rates than the
rates mentioned above. We have been able to negotiate the rates at lower rates
than the amount of quotations as mentioned above.
15

M/s Pioneer Plastitech

Status of Means of Finance:As per the above means of finance for completing the project proprietors
contribution works out at Rs.50.00 Lacs, Net Profit of Rs. 26.46 & Unsecured
Loan of Rs. 31.00 Lacs. Balance amount of Rs. 50.00 Lacs is proposed to be
fulfilled by requesting bank for Term Loan.
Summary of profitability and DSCR
Year

(Rs. In Lacs)

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

Net profit after

tax
Add:
Depreciation
written of
Add: Int on T.L.
Add:Int. on Cash
Credit
Funds Available
to service debt

26.46

46.99

51.92

55.96

59.35

63.80

68.84

1.26

11.03

9.36

7.94

6.75

5.74

4.87

1.57
10.14

8.25
26.69

6.43
26.69

4.79
26.69

3.22
26.69

1.64
26.69

0.23
26.69

39.43

92.96

94.39

95.39

96.00

97.87

100.63

Int on T.L.
Int. on Cash
Credit
Principal
repayment T.L.
Total bank
service

1.57
10.14

8.25
26.69

6.43
26.69

4.79
26.69

3.22
26.69

1.64
26.69

0.23
26.69

11.41

9.45

7.87

10.00

10.00

10.00

5.00

23.12

44.39

40.98

41.48

39.90

38.33

31.92

DSCR
Average DSCR

1.71

2.09

2.30

2.30
2.37

2.41

2.55

3.15

From the above it may be perused that the average D.S.C.R. works out at 2.37
with minimum DSCR is 1.71 which do not envisage any problem in repayment of
the Term Loan Installments and Interest, thereon by the party.
Assumptions:
1.

Interest has been calculated @ 15.75% p.a.

16

M/s Pioneer Plastitech

2. Depreciation has been calculated as per the WDV method under
companys act.

Implementation schedule
Land & Building
Order of Plant & Machinery
Delivery of Machineries
Installation
and
trial

run

machineries
Commercial production

Already acquired
Already Placed
March-2012
of March-2012
April-2012

Proposed repayment schedule:

Proposed Term Loan will be repaid over a period of 5 Years in 60 equal monthly
installments of Rs. 83,333/- with the moratorium period of 6 months. The first
Installment will start from 1st October 2012. Interest is to be paid as and when
charged.
SECURITY:
Primary
Cash Credit: Hypothecation of Stock and Book Debts.
Term Loan: Hypothecation of Plant & Machinery .

Collateral: -

1. Shop No.2 and shop No.3 situated at Near Daman Check Post admeasuring
440.Square foot.
2. Residential Flat at Tithal Road Valsad admeasuring 1775 Square foot.
3. Factory Building Located at Plot No. 257/16 Goa IDC, Kachigam, Daman396210 Admeasuring 1000Square meter.
PERSONAL GUARANTEE
GUARANTORS
Name of Guarantors
1

Mr. Hemal S Shah

Mrs. Khyati H Shah

Mrs. Beenaben S Shah

17

M/s Pioneer Plastitech

STRENGTH
The Factory is located at Daman where various exemptions are available.
The Proposed product is having good demand in national as well as global
market.
The long experience of the group and quality of the products will help the firm
to establish the products in local and national market.
The partners are of large means and enjoy good reputation in business circles
having good contacts in the local as well as in national markets, which will
enable them to develop the activities at the desired level.
The firm enjoys location advantage in terms of proximity to physical facilities,
manpower, transportation etc. The unit is also located within the close
proximity of raw material suppliers and finished goods market.

For M/s. Pioneer Plastitech

Proprietor

18