PROJECT

REPORT

EMMAR PAINTS AND HARDWARES

GROUND FLOOR, 1/151, EMMAR PAINTS AND HARDWARES, Chadayamangalam
Pallickal Road, POREDOM, Chadayamangalam, Kollam, Kerala,
 Project at a glance
Name & Address of Unit

EMMAR PAINTS AND HARDWARES

GROUND FLOOR, 1/151, EMMAR PAINTS AND HARDWARES,
Chadayamangalam Pallickal Road, POREDOM, Chadayamangalam, Kollam,
Kerala,,691534

Activity : Hardware Shop

Email : SAINUDEEN@gmail.com

Phone : 9496610486

Constitution : Proprietorship

Scheme : sme

Number of employment : 5

Total project cost : 12,00,000.00

Fixed Capital : 0.00

Working Capital : 12,00,000.00

Total Bank loan : 10,20,000.00

Promoter(s) contribution : 1,80,000.00

Working capital loan : 10,20,000.00 Interest : 9.85 %

Name & address of promoter(s)

Name : SAINUDEEN A

GROUND FLOOR, 1/151, EMMAR PAINTS AND HARDWARES, Chadayamangalam Pallickal

Address :
Road, POREDOM, Chadayamangalam, Kollam, Kerala,

Phone : 9496610486

Designation : Founder

Category : OBC

E-mail : SAINUDEEN@gmail.com
 Project Feasibility Ratio
Debt Service Coverage Ratio (Average) :0.00

Current ratio (Average) :2.39

Year 1 Year 2 Year 3 Year 4 Year 5

Current ratio 2.01 2.17 2.36 2.57 2.81

Quick ratio 0.84 0.88 0.93 1.00 1.09

Interest coverage ratio 17.21 2.61 2.87 3.16 3.47

Debt equity ratio 0.99 0.85 0.74 0.64 0.55

TOL/TNW 0.99 0.85 0.74 0.64 0.55

DSCR 0.00 0.00 0.00 0.00 0.00

Gross profit Sales Percentage % 12.31 % 2.48 % 2.48 % 2.48 % 2.48 %

Net profit Sales Percentage % 7.52 % 0.97 % 1.02 % 1.07 % 1.12 %

Return On Capital Employed 1.18 0.14 0.14 0.14 0.13

Net profit Sales % Quick ratio

Project Feasibility graph
Revenue v/s Expense

Expense Splitup
 Introduction

Now is a great time to attempt to break into India's building materials market. The nation has launched several
ambitious building schemes in recent months, from 'smart cities' to housing projects, all of which need supplies
of cement, ceramics, windows, and other construction materials.

This has led to a period of strength for the Indian construction materials market that looks set to grow over the
coming months. As such, it is a great time for overseas firms to get involved with this vibrant industry. India is
very open to trade and investment from international companies, which could make it a very lucrative option for
building materials businesses. Late last year, India's Cabinet moved to relax foreign direct investment rules
governing the construction sector, easing restrictions around minimum built-up areas, capital requirements, and
exit norms.

A hardware store typically sells hand and power tools, building materials, fasteners, keys, locks, hinges, chains,
electrical supplies, plumbing supplies, cleaning products, housewares, utensils, paint, and much more. Make a
list of all and markdown those items you can manage to sell if you set up such a shop.
 Product / Services & process

The hardware shop consist of all building materials ranging from nails to cements and bathroom fittings
 Market potential & Strategy

The construction materials industry in India is continuing to grow, becoming more and more lucrative for
international companies looking to get involved with this strong market. The recent boost in construction is
causing several sectors to improve, as epitomized by recent news about the growth of the cement industry. his
financial year will see cement production increase by as much as 7.5 percent, according to the ratings firm's
predictions, thanks to increased demand from the construction industry. Local advertisement, engaging local
masons and plumbers, build a good rapport with them are very crucial.
 Project Cost
Sl. no Item Amount Rs.

1 Racks & storage/Interior works 0.00

2 Electrification & Electricity backup 0.00

3 Preliminary/Pre-operating expenses 0.00

4 Other investments 0.00

5 Air-conditioning 0.00

6 Working Capital 12,00,000.00

Total 12,00,000.00

 
 Working Capital Computation
Sl. no Item Amount Rs.

1 Consumables / stock in hand 12,00,000.00

2 Total working capital 12,00,000.00

3 Own Contribution 1,80,000.00

4 Working capital loan 10,20,000.00

 Annual Sales / Revenue
Sales is calculated from July 2022

Sl. no Item Sales Details Total Rs.

1 Income from Sales Rs. 1264266 x 9 months 1,13,78,394.00

Total 1,13,78,394.00
 Total Yearly Expense
Expense is calculated from July 2022 .

Sl. no Item Amount Rs.

1 Rent 63,000.00

2 Salary 3,60,000.00

3 Electricity/Gas charges 17,991.00

4 Stationary expenses 40,491.00

5 Stock purchase 1,08,00,000.00

Total 1,12,81,482.00
 Application of Fund
Sl. no Item Subsidy % No. Rate Amount Rs.

1 Racks & storage/Interior works 0.00 1 0.00 0.00

2 Electrification & Electricity backup 0.00 1 0.00 0.00

3 Preliminary/Pre-operating expenses 1 0.00 0.00

4 Other investments 0.00 1 0.00 0.00

5 Air-conditioning 0.00 1 0.00 0.00

Total Investment 0.00

Total Subsidy 0.00

Net Investment 0.00

 Means of Finance
Sl. no Item Amount

1 Working capital Loan 10,20,000.00

2 Total loan 10,20,000.00

3 Promoters contribution on working capital loan 1,80,000.00

 Profitability Statement
All figures are in lakhs
31/03/23 31/03/24 31/03/25 31/03/26 31/03/27

Revenue from operation

Income from Sales 113.78 166.88 183.57 201.93 222.12

Add :

Closing stock 12.00 13.20 14.52 15.97 17.57

Total 125.78 180.08 198.09 217.90 239.69

Less :

Opening stock 0 12.00 13.20 14.52 15.97

Stock purchase 108.00 158.40 174.24 191.66 210.83

Salary 3.60 5.28 5.81 6.39 7.03

Electricity/Gas charges 0.18 0.26 0.29 0.32 0.35

Total 111.78 175.94 193.54 212.89 234.18

Gross profit 14.00 4.14 4.55 5.01 5.51

Less :

Rent 0.63 0.92 1.02 1.12 1.23

Stationary expenses 0.40 0.59 0.65 0.72 0.79

Total 1.03 1.52 1.67 1.84 2.02

Profit before interest, tax and depreciation 12.97 2.62 2.88 3.17 3.49

Depreciation 0 0 0 0 0

Interest on TL 0 0 0 0 0

Interest on WC 0.75 1.00 1.00 1.00 1.00

Profit before tax 12.22 1.62 1.88 2.17 2.48

Income Tax 3.66 0 0 0 0

Profit after tax 8.55 1.62 1.88 2.17 2.48

 Cash flow statement
All figures are in lakhs
Cash Inflow Pre operative period 31/03/23 31/03/24 31/03/25 31/03/26 31/03/27
Capital 0 1.80 0 0 0 0
Subsidy 0 0 0 0 0 0
Termloan 0 0 0 0 0 0
Profit before tax with interest 0 12.97 2.62 2.88 3.17 3.49
Increase in WC loan 0 10.20 0 0 0 0
Depreciation 0 0 0 0 0 0
Increase in Current liability 0 0 0 0 0 0
Total Cash Inflow 0 24.97 2.62 2.88 3.17 3.49

Cash Outflow
Fixed Assets 0 0 0 0 0 0
Increase in Current asset 12.00 1.20 1.32 1.45 1.60
Interest on TL 0 0 0 0 0 0
Interest on WC 0 0.75 1.00 1.00 1.00 1.00
Income Tax 0 3.66 0 0 0 0
Decrease in Term loan 0 0 0 0 0
Drawing 0
Total Cash Outflow 0 16.42 2.20 2.32 2.46 2.60
Opening balance 0 0 8.55 8.97 9.53 10.24
Net Cashflow 0 8.55 0.42 0.56 0.72 0.89
Closing balance 0 8.55 8.97 9.53 10.24 11.13
 Balance sheet
All figures are in lakhs
Liability Pre operative period As of 31/03/23 31/03/24 31/03/25 31/03/26 31/03/27

A. Share holders funds

Capital 0 1.80 1.80 1.80 1.80 1.80

Reserve & Surplus 0 8.55 10.17 12.05 14.21 16.70

B.Non current Liabilities

Termloan 0 0 0 0 0 0

C.Current Liabilities

Working capital loan 0 10.20 10.20 10.20 10.20 10.20

Account payable 0 0 0 0 0

Total Liability 0 20.55 22.17 24.05 26.21 28.70

Asset

A. Non current Assets

Fixed Assets 0 0 0 0 0 0

B. Current Assets

Inventory 0 12.00 13.20 14.52 15.97 17.57

Trade receivables 0 0 0 0 0 0

Cash and cash equivalence 0 8.55 8.97 9.53 10.24 11.13

Total Asset 0 20.55 22.17 24.05 26.21 28.70

 Debt Service Coverage Ratio
All figures are in lakhs
Particulars 31/03/23 31/03/24 31/03/25 31/03/26 31/03/27

Receipts

a).Net Profit 8.55 1.62 1.88 2.17 2.48

b).Depreciation 0 0 0 0 0

c).Interest on termloan 0 0 0 0 0

Total 8.55 1.62 1.88 2.17 2.48

Repayments

a).Loan Principal 0 0 0 0 0

b).Interest on termloan 0 0 0 0 0

Total 0 0 0 0 0

DSCR 0.00 0.00 0.00 0.00 0.00

Average DSCR : 0.00

 Depreciation
All figures are in lakhs
Particulars Rate 31/03/23 31/03/24 31/03/25 31/03/26 31/03/27

Racks & storage/Interior works 10 0 0 0 0 0

Less Depreciation 0 0 0 0 0

Written down value 0 0 0 0 0

Preliminary/Pre-operating expenses 10 0 0 0 0 0

Less Depreciation 0 0 0 0 0

Written down value 0 0 0 0 0

Other investments 15 0 0 0 0 0

Less Depreciation 0 0 0 0 0

Written down value 0 0 0 0 0

Air-conditioning 15 0 0 0 0 0

Less Depreciation 0 0 0 0 0

Written down value 0 0 0 0 0

Total less depreciation 0 0 0 0 0

Total written down value 0 0 0 0 0

 Assumption
The entire projection is based on the assumption that the sales for 5 years will be

All figures are in lakhs

31/03/23 31/03/24 31/03/25 31/03/26 31/03/27

125.78 180.08 198.09 217.90 239.69

Income from Sales : 15171192

Also the total expense for the firm during the projection years will be as follows

31/03/23 31/03/24 31/03/25 31/03/26 31/03/27

112.81 165.46 182.01 200.21 220.23

• The depreciation is as follows

Particulars Value

Racks & storage/Interior works 10%

Other investments 15%

Air-conditioning 15%

• Cost of Machinery is based on direct purchase from the market on deepest study
• Value of raw materials & utility charges as per the current market conditions
• All other assumptions are calculated based on the basis of experience of the promoter and deep study on
the working of similar model

This report is created by Akshaya Kendram. Akshaya Kendram have bears no financial responsibility on or behalf
of any of the authorized signatories
 Conclusion
The project as a whole describes the scope and viability of the Trading industry and mainly of the financial,
technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good
return on capital investment. When analyzing the social- economic impact, this project is able to generate an
employment of 5 and above. It will cater the demand of Trading and thus helps the other business entities to
increase the production and service which provide service and support to this industry. Thus more cyclic
employment and livelihood generation. So in all ways, we can conclude the project is technically and socially
viable and commercially sound too.

The Profit and Loss shows a steady growth in profit throughout the year and the firm has a   good Current Ratio
(average) of 2.39, this shows the current assets and current liabilities are managed & balanced well.
Annexure