3 COST OF PROJECT

A. Fixed Capital Investment

a. Land : 0 Own

b. Workshed Area Sq.ft Rate in Rs. Amt. In Rs.

Covered Area 250 0.00 0.00
Total 0.00

C. Machinery Qty. Rate Amount in Rs.

Class Harvester- MODEL CT40-M460 1 0.00 2900000.00
Total 2900000.00
d. Preliminary & Pre-operative Cost : Rs. 0.00

e. Furniture & Fixtures : Rs. 0.00

f. Contingency/Others/Miscellaneous : Rs. 0.00

Total Capital Expenditure : Rs. 2900000.00

Working Capital : Rs. 0.00

Total Cost Project : Rs. 2900000.00

3.1 Means of Financing :

Own Contribution Rs. 900000.00

Bank Finance :
Term Loan Rs. 2000000.00
Working Capital Rs. 0.00

Total Rs. 2000000.00

3.2 STATEMENT SHOWING THE REPAYMENT OF TERM LOAN & WORKING CAPITAL :
TERM LOAN

Interest @
Year Opening Balance Installment Closing Balance
9.00%
1st 2000000 0 2000000 180000
2nd 2000000 400000 1600000 180000
3rd 1600000 400000 1200000 144000
4th 1200000 400000 800000 108000
5th 800000 400000 400000 72000
6th 400000 400000 0 36000
7th 0 0 0 0
8th 0 0 0 0
 WORKING CAPITAL

Interest @
Year Opening Balance Installment Closing Balance
9.00%
1st 0 0 0 0
2nd 0 0 0 0
3rd 0 0 0 0
4th 0 0 0 0
5th 0 0 0 0
6th 0 0 0 0
7th 0 0 0 0
8th 0 0 0 0
3.3 STATEMENT SHOWING THE DEPRECIATION ON FIXED ASSETS:
WORKSHED @ 0.00%
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Opening Balance 0 0 0 0 0
Depreciation 0 0 0 0 0
Closing Balance 0 0 0 0 0
MACHINERY @ 15.00%
Opening Balance 2900000 2465000 2095250 1780963 1513818
Depreciation 435000 369750 314288 267144 227073
Closing Balance 2465000 2095250 1780963 1513818 1286745
TOTAL DEPRECIATION
Workshed 0 0 0 0 0
Machinery 435000 369750 314288 267144 227073
Total 435000 369750 314288 267144 227073

4 Schedule of Sales Realization :

4.1 Details of Sales
Rate/ No. of Amount in Rs.
Particulars of Product
Pair/Unit Pair/Unit
Service Sales Realization : 0.00 0 2540000.00

Total 2540000.00

4.2 Capacity Utilization of Sales

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year

Capacity Utilization 70% 75% 80% 85% 90%

Sales / Receipts 1778000 1905000 2032000 2159000 2286000

5 Rawmaterials :
Particulars Unit Rate/unit Reqd.Unit Amount in Rs.
0 0 0.00 0 0.00
Total 0.00
5.1 Wages :
No. of Wages Amount in Rs.
Particulars
Worker Per Month (Per Annum)
SKILLED OPERATOR 1 14000.00 180000.00
SEMI SKILLED LABOUR 1 7500.00 96000.00
Total 2 276000.00

5.2 Repairs and Maintenance : Rs. 156254.00

5.3 Power and Fuel : Rs. 325664.00

5.4 Other Overhead Expenses : Rs. 26850.00

6 Administrative Expenses :
6.1 Salary
MANAGER 1 20000.00 240000.00
Total 1 240000.00

6.2 Telephone Expenses 1250.00

6.4 Stationery & Postage 8500.00

6.5 Advertisement & Publicity 6572.00

6.6 Workshed Rent 0.00

6.7 Other Miscellaneous Expenses 45620.00

Total 301942.00
7 Capacity Utilization of Service & Administrative Expenses :
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Capacity Utilization 70% 75% 80% 85% 90%
Service Expenses
Raw materials 0 0 0 0 0
Wages 193200 207000 220800 234600 248400
Repairs & Maintenance 109378 117191 125003 132816 140629
Power & Fuel 227965 244248 260531 276814 293098
Other Overhead Expenses 18795 20138 21480 22823 24165
Administrative Expenses
Salary 240000 240000 240000 240000 240000
Postage Telephone Expenses 875 938 1000 1063 1125
Stationery & Postage 5950 6375 6800 7225 7650
Advertisement & Publicity 4600 4929 5258 5586 5915
Workshed Rent 0 0 0 0 0
Other Miscellaneous Expenses 31934 34215 36496 38777 41058
Total: 832697 875033 917368 959704 1002039
8 Assessment of Working Capital :
Particulars Amount in Rs.
Sale 2495000.00

Service Expenses
Raw Material 0.00
Wages 276000.00
Repair & Maintenance 156254.00
Power & Fuel 325664.00
Other Overhead Expenses 26850.00

Service Cost 784768.00

Administrative Cost 301942.00
Total Cost 1086710.00
 9 Financial Analysis
9.1 Projected Profit & Loss Account :
Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Sales / Receipts 1778000 1905000 2032000 2159000
1778000 1905000 2032000 2159000
Service Expenses
Raw materials 0 0 0 0
Wages 193200 207000 220800 234600
Repairs & Maintenance 109378 117191 125003 132816
Power & Fuel 227965 244248 260531 276814
Other Overhead Expenses 18795 20138 21480 22823
Depreciation 435000 369750 314288 267144
Service Cost 984338 958326 942102 934197
Administrative Expenses
Salary 240000 252000 264600 277830
Postage Telephone Expenses 875 938 1000 1063
Stationery & Postage 5950 6375 6800 7225
Advertisement & Publicity 4600 4929 5258 5586
Workshed Rent 0 0 0 0
Other Miscellaneous Expenses 31934 34215 36496 38777
Administrative Cost 283359 298457 314154 330481
Interest on Bank credit @ 9%
Term Loan 180000 180000 144000 108000
Working Capital Loan 0 0 0 0
Cost of Sale 1447697 1436783 1400256 1372678
Net Profit Before Tax 330303 468218 631745 786322
Less Tax 0.00 0.00 0.00 0.00
Net Profit 330303 468218 631745 786322

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

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Net Profit 330303 468218 631745 786322
Add :
Depreciation 435000 369750 314288 267144
TOTAL - A 765303 837968 946032 1053467
Payments :
On Term Loan :
Interest 180000 180000 144000 108000
Installment 0 400000 400000 400000
On Working Capital
Interest 0 0 0 0
TOTAL - B 180000 580000 544000 508000
D.S.C.R = A/B
2.19 2.37 2.73 2.88
Average D.S.C.R
9.3 PROJECTED BALANCE SHEET :
Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
LIABILITIES :
Beneficiary's Capital 900000 900000 900000 900000
Profit 330303 468218 631745 786322
Term Loan 2000000 2000000 1600000 1200000
Working Capital Loan 0 0 0 0
Current Liabilities 0 0 0 0
Sundry Creditors 0 0 0 0
3230303 3368218 3131745 2886322
ASSETS :
Gross Fixed Assets : 2900000 2465000 2095250 1780963
Less : Depreciation 435000 369750 314288 267144
Net Fixed Assets 2465000 2095250 1780963 1513818
Preliminary & Pre-Op. Expenses 0 0 0 0
Current Assets 0 0 0 0
Cash in Bank/Hand 765303 1272968 1350782 1372504
Total 3230303 3368218 3131745 2886322

9.4 CASH FLOW STATEMENT :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Net Profit 330303 468218 631745 786322
Add : Depreciation 435000 369750 314288 267144
Term Loan 2000000 2000000 1600000 1200000
Working Capital Loan 0 0 0 0
Beneficiary's Capital 900000 0 0 0
Total 3665303 2837968 2546032 2253467

Total Fixed Capital Invested 2900000

Repayment of Term Loan 0 400000 400000 400000

Repayment of WC Loan 0 0 0 0
Current Assets 0 0 0 0
Total 0 400000 400000 400000

Opening Balance 0 3665303 6103271 8249303

Surplus 3665303 2437968 2146032 1853467
Closing Balance 3665303 6103271 8249303 10102769
9.5 BREAK EVEN POINT AND RATIO ANALYSIS :
Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Fixed Cost 898359 848207 772441 705625
Variable Cost 984338 958326 942102 934197
Total Cost 1882697 1806533 1714543 1639822

Sales 1778000 1905000 2032000 2159000

Contribution (Sales-VC) 793662 946674 1089898 1224803

B.E.P in % 113.19% 89.60% 70.87% 57.61%

Break Even Sales in Rs. 2012547 1706853 1440135 1243828

Current Ratio 2.13 2.29 2.42 2.63

Net Profit Ratio 14.52% 14.87% 14.98% 15.23%

This Project Report has been prepared based on the data furnished by the
beneficiary whose details are given in the application.
Place :
Date:
Full Name : Jayram Lodhi

Signature of the Beneficiary