PROJECT REPORT

OF

1 Name of the Entrepreneur :- -

3 Constitution (legal Status) :-

4 Address :-
:-
:-
:-
5 Unit Addres :-
:-
:-
:-
6 Mob :-

7 Gander :-

8 Line of Activity :- Fly Ash Bricks

9 Cost of Project :- Rs 50.00 Lacs

:-
10 Own Contributation :- Rs.2.50Lacs

11 Bank Finance :- Rs 47.50 Lacs

12 Finance Bank :-
13 Introduction
Pulverized fuel ash commonly known as fly ash is a useful byproduct from thermal power stations
using pulverized coal as fuel and has considerable pozzolonic activity. This national resource has
been gainfully utilized for manufacture of pulverized fuel ash-lime bricks as a supplement to common
burnt clay buildings bricks leading to conservation of natural resources and improvement in
environment quality. Now a days demand for this bricks is very high. Future of the business is bright.
This business provide employment to local people
14 Promoter
 FINANCIAL & ECONOMIC EVALUATION
(Rs. in lacs)
Estimated Cost of the Project Existing Addition Total
i) Land & Building Owned
ii) Machineries - 40.061 40.06
iii) Building 4.000 4.00
iv) Working Capital Margin 5.939 5.94
- 50.00 50.00

Means of Finance Amount

i) Term Loan from Bank - 41.860 41.86
ii) CC from Bank 5.640 5.64
iii) Promoter's Contribution/internal Accruals - 2.500 2.50
- 50.00 50.00

Debt Equity Ratio

Debt = Rs. 47.50 lacs
Equity = Rs. 2.50 lacs
D.E.R. = 47.5/2.5 = 19 : 1

Promoters Contribution to the Project Cost

Project Cost 50.00 =
Promoters contribution 2.50

PC to PC 2.5/50 = 5%
1 Pay back Period 60 months

2 Implementation Period 6 months

3 Employment 15

4 Power Requirement 10 KW

5 Raw Material
All the following raw material easily available at local market.
Sl No Particular Qty Rate /pm Amount/Yr
Fly Ash 60% 4492800 0.70 3,144,960.00
Lime 10% 748800 4.00 2,995,200.00
Gypsum 5% 374400 1.40 524,160.00
1 Sand 25% 1872000 0.20 374,400.00
Total 100% 7488000 7,038,720.00

Normal weight of Bricke 2.6Kg 7488000.00

Total Weight
Estimated Annual Sales
Sl No Particular No of Bricks Rate Amount
1 Production Per Day 8 hr 9600
Production Per Month 25 Days 240000
Production Per Year 12 Months 2880000 5.00 14,400,000.00
Total 14,400,000.00

6 Employment
Sl No Particular No Rate /pm Amount/Yr
1 Manager (self) 1
2 Supervisor 2 8000 192000.00
3 Skilled 4 10000 480000.00
4 Unskilled 8 5000 480000.00
Total 15 1152000.00

7 Other expenses
Sl No Particular Amount/Yrly
1 Repair & Maintenance 432000.00
2 Telephone Expenses 28800.00
3 Travelling Expenses 216000.00
4 Misc Exp 144000.00
5 Insurance 25000.00
6 Interest on CC 12.00% 70500.00
7 Interest on TL 12.00% 456278.00
8 Depreciation 15% 660915.00
8 Estimated Annual Sales
Sl No Particular Plate Cup Total
1 Production Capacity Per Day 9600 9600
2 No. of Working Hour 8
3 No of Working Days per month 25
4 No. of Working Day per annum 300
5 Total Production per Annum 2880000 2880000
6 Selling price per unit (Rs) 5.20
7 Total Sales (Rs) 0 14976000 14976000

Capacity Utilization
1st Year 2nd Year 3rd Year 4th Year 5th Year
60% 65% 70% 75% 80%
Unit 1728000 1872000 2016000 2160000 2304000

Sales
1st Year 2nd Year 3rd Year 4th Year 5th Year
Opening Stock - 216000 234000 252000 270000
Production 1728000 1872000 2016000 2160000 2304000
Less Closing Stock 216000 234000 252000 270000 288000
Sales (Unit) 1512000 1854000 1998000 2142000 2286000
Sales in Rs 7,862,400.00 9,640,800.00 10,389,600.00 11,138,400.00 11,887,200.00

9 DSCR 2.38
10 Subsidy 35% Rs. 1,750,000.00
 PROFITABILITY STATEMENTS
1st Year 2nd Year 3rd Year 4th Year 5th year
A. Gross Received 7,862,400 9,640,800 10,389,600 11,138,400 11,887,200

B. Cost of goods sold

Purchase 4,223,232 4,845,555 5,370,111 5,907,122 6,402,478
Wages 480,000 503,000 553,300 587,965 625,363
Add. Opening Stock - 1,080,000 1,170,000 1,260,000 1,350,000
Less: Closing Stock 1,080,000 1,170,000 1,260,000 1,350,000 1,440,000
Total 3,623,232 5,258,555 5,833,411 6,405,087 6,937,841

C Gross Profit (A-B) 4,239,168 4,382,245 4,556,189 4,733,313 4,949,359

D Selling & General Adm Exp.

To Salaries 672,000 739,200 813,120 894,432 983,876
To Repair & Maintenance 432,000 475,200 522,720 574,992 632,492
To Telephone Expenses 28,800 31,680 34,848 38,333 42,167
To Travelling Epenses 216,000 237,600 261,360 287,496 316,246
To Electricity Charges 46,000 48,300 50,715 53,251 55,914
To Misc Exp 144,000 158,400 174,240 191,664 210,831
To Insurance 25,000 25,000 25,000 25,000 25,000
To Interest on CC 70,500 70,500 70,500 70,500 70,500
To Interest on TL 456,278 355,814 255,350 154,886 54,422
To Depreciation 660,915 561,778 477,512 405,885 345,002

To Net Profit 1,487,675 1,678,773 1,870,824 2,036,874 2,212,909

 PROJECTION OF BALANCE SHEET
1st Year 2nd Year 3rd Year 4th Year 5th Year
CAPITAL & LIABILITIES
Capital 250,000 1,257,675 2,216,448 4,657,272 5,314,146
Add :Net Profit 1,487,675 1,678,773 1,870,824 2,036,874 2,212,909
Add : Further Capital 1,750,000
Less: Drawings 480,000 720,000 1,180,000 1,380,000 1,450,000
Closing Balance 1257675 2,216,448 4,657,272 5,314,146 6,077,055

Margin Money from DIC 1,750,000 1,750,000

Term Liabilities
TL from Bank 3,348,796 2,511,592 1,674,388 837,184 0

Current liabilities
-
CC from Bank 564,000 564,000 564,000 564,000 564,000
Payables 15,000 35,000 40,000 45,000 50,000
Total Liabilities 6,935,471 7,077,040 6,935,660 6,760,330 6,691,055

ASSETS
Fixed Assets 4,406,100 3,745,185 3,183,407 2,705,895 2,300,010
Less : Depreciation 660,915 561,778 477,512 405,885 345,002
Net Assets 3,745,185 3,183,407 2,705,895 2,300,010 1,955,008

Investments FDR(Subsidy) 1,750,000 1,750,000 1,750,000 1,750,000 1,750,000

Current Assets
Stock of Finished goods 564,000 1,170,000 1,260,000 1,350,000 1,440,000
Sundry Debtors 485,000 533,500 586,850 645,535 660,089
Cash & Bank balance 391,286 440,133 632,915 714,785 885,958
Total Assets 6,935,471 7,077,040 6,935,660 6,760,330 6,691,055
 SCHEDULE OF DEPRECIATION

PATRICULARS 1st Year 2nd Year 3rd Year 4th Year 5th year

Opening Balance (WDV) 3,745,185 3,183,407 2,705,895 2,300,010

Purchase during the Year 4,406,100
TOTAL 4,406,100 3,745,185 3,183,407 2,705,895 2,300,010
Sold during the Year
Depreciation 660,915 561,778 477,512 405,885 345,002
Closing Balance 3,745,185 3,183,407 2,705,895 2,300,010 1,955,008
 DEBT SERVICE COVERAGE RATIO STATEMENT (DSCR)

PATRICULARS 1st Year 2nd Year 3rd Year 4th Year 5th year
A. Cash Accural
Net Profit after Tax 1,487,675 1,678,773 1,870,824 2,036,874 2,212,909

Depreciation 660,915 561,778 477,512 405,885 345,002

Interest on Term Loan 456,278 355,814 255,350 154,886 54,422

Total (A) 2,604,868 2,596,365 2,603,686 2,597,645 2,612,333

B. Repayment Obligation

Term Loan Instalment 837,204 837,204 837,204 837,204 837,184

Interest on Term Loan 456,278 355,814 255,350 154,886 54,422

Total 1,293,482 1,193,018 1,092,554 992,090 891,606

DSCR (A)/(B) 2.01 2.18 2.38 2.62 2.93

Average DSCR 2.38

 CASH FLOW STATEMENT

PATRICULARS 1st Year 2nd Year 3rd Year 4th Year 5th year

SOURCES OF FUNDS

Net Profit After Tax 1,487,675 1,678,773 1,870,824 2,036,874 2,212,909

Depreciation 660,915 561,778 477,512 405,885 345,002

Increase in Term Loan 4,186,000

Increase in Capital 250,000
Increase in Current Liabilities 579,000 20,000 5,000 5,000 5,000

TOTAL 7,163,590 2,260,551 2,353,336 2,447,759 2,562,911

USE OF FUNDS

Increase in Fixed Assets 4,406,100

- -
Withdrawals 480,000 720,000 1,180,000 1,380,000 1,450,000
Decrease in Term Loan 837,204 837,204 837,204 837,204 837,184
Increase in Corrent Assets 1,049,000 654,500 143,350 148,685 104,554

TOTAL 6,772,304 2,211,704 2,160,554 2,365,889 2,391,738

Opening Balance Nil 391,286 440,133 632,915 714,785

Surplus/ Deficit 391,286 48,847 192,782 81,870 171,173
Closing Balance 391,286 440,133 632,915 714,785 885,958

- - - - -
 Working Capital Assessment
Year 1st Year 2nd Year 3rd Year 4th Year 5th year
A Turnover 78.62 96.41 103.90 111.38 118.87
B Working capital requirement 19.66 24.10 25.97 27.85 29.72
C Margin of Working Capital 3.93 4.82 5.19 5.57 5.94
D Working Capital available 8.61 15.45 18.76 21.01 23.72
E Higher C or D 8.61 15.45 18.76 21.01 23.72
F WC eligible 11.04 8.66 7.22 6.83 6.00
G WC applied 5.64 5.64 5.64 5.64 5.64

Ratio
Current Assets 14.40 21.44 24.80 27.10 29.86
Current Liabilities 5.79 5.99 6.04 6.09 6.14
NWC 8.61 15.45 18.76 21.01 23.72

CR 2.49 3.58 4.11 4.45 4.86

DP 7.03 11.71 12.67 13.66 14.39

Tangiable Net Worth 12.58 22.16 46.57 53.14 60.77

Long Term Liabilities 33.49 25.12 16.74 8.37 -
Net Block 37.45 31.83 27.06 23.00 19.55
Non Current Assets 17.50 17.50 17.50 17.50 17.50
Net Working Capital 8.61 15.45 18.76 21.01 23.72
Total Outside Liabilities 39.28 31.11 22.78 14.46 6.14
DER TL/TNW 2.66 1.13 0.36 0.16 -
TOL/TNW Ratio 3.12 1.40 0.49 0.27 0.10
Net Sales 78.62 96.41 103.90 111.38 118.87
Other Income
Net Profit after Tax 14.88 16.79 18.71 20.37 22.13
Depreciation 6.61 5.62 4.78 4.06 3.45
Cash Accural 21.49 22.41 23.48 24.43 25.58
 BREAKEVEN ANALYSIS
(Rs. in lacs)
Sl. No. Particulars 1st Year 2nd Year 3rd Year 4th Year 5th year
1. Sales 78.62 96.41 103.90 111.38 118.87
2. Variable Cost -- -- -- -- --
Power & Fuel 0.46 0.48 0.51 0.53 0.56
Purchase 42.23 48.46 53.70 59.07 64.02
Salary & Wages (50% variable) 5.76 6.21 6.83 7.41 8.05
Other direct expenses 0.00 0.00 0.00 0.00 0.00
CC Interest 0.71 0.71 0.71 0.71 0.71
Administrative Expneses (50% variable) 2.30 2.50 2.73 2.98 3.25
Variable Cost 51.46 58.36 64.48 70.70 76.59
Less: Adj. of finished goods 10.80 0.90 0.90 0.90 0.90
Total Variable Cost 40.66 57.46 63.58 69.80 75.69
3. Contribution (1-2) 37.97 38.95 40.32 41.58 43.19
4. Fixed cost
Salary & Wages (50% Fixed) 5.76 6.21 6.83 7.41 8.05
Repair & maintenance 4.32 4.75 5.23 5.75 6.32
Administrative Expneses (50% Fixed) 2.30 2.50 2.73 2.98 3.25
Term Loan Interest 4.56 3.56 2.55 1.55 0.54
Depreciation 6.61 5.62 4.78 4.06 3.45
Total Fixed cost 23.55 22.64 22.12 21.75 21.62
5. B.E.P. (Utilised Capacity) (4/3) 62.03% 58.14% 54.86% 52.30% 50.05%
6. Average B.E.P. 55.28%
 REPAYMENT SCHEDULE

Amount of Loan 4,186,000.00

Rate of Interest 12.00%
Monthly Instalment 69,767.00
No of Instalment 60

Monthly
Installment Principal Interest Total Loan Outstanding
1 69,767.00 41,860.00 111,627.00 4,116,233.00
2 69,767.00 41,163.00 110,930.00 4,046,466.00
3 69,767.00 40,465.00 110,232.00 3,976,699.00
4 69,767.00 39,767.00 109,534.00 3,906,932.00
5 69,767.00 39,070.00 108,837.00 3,837,165.00
6 69,767.00 38,372.00 108,139.00 3,767,398.00
7 69,767.00 37,674.00 107,441.00 3,697,631.00
8 69,767.00 36,977.00 106,744.00 3,627,864.00
9 69,767.00 36,279.00 106,046.00 3,558,097.00
10 69,767.00 35,581.00 105,348.00 3,488,330.00
11 69,767.00 34,884.00 104,651.00 3,418,563.00
12 69,767.00 34,186.00 103,953.00 3,348,796.00 456,278.00
13 69,767.00 33,488.00 103,255.00 3,279,029.00
14 69,767.00 32,791.00 102,558.00 3,209,262.00
15 69,767.00 32,093.00 101,860.00 3,139,495.00
16 69,767.00 31,395.00 101,162.00 3,069,728.00
17 69,767.00 30,698.00 100,465.00 2,999,961.00
18 69,767.00 30,000.00 99,767.00 2,930,194.00
19 69,767.00 29,302.00 99,069.00 2,860,427.00
20 69,767.00 28,605.00 98,372.00 2,790,660.00
21 69,767.00 27,907.00 97,674.00 2,720,893.00
22 69,767.00 27,209.00 96,976.00 2,651,126.00
23 69,767.00 26,512.00 96,279.00 2,581,359.00
24 69,767.00 25,814.00 95,581.00 2,511,592.00 355,814.00
25 69,767.00 25,116.00 94,883.00 2,441,825.00
26 69,767.00 24,419.00 94,186.00 2,372,058.00
27 69,767.00 23,721.00 93,488.00 2,302,291.00
28 69,767.00 23,023.00 92,790.00 2,232,524.00
29 69,767.00 22,326.00 92,093.00 2,162,757.00
30 69,767.00 21,628.00 91,395.00 2,092,990.00
31 69,767.00 20,930.00 90,697.00 2,023,223.00
32 69,767.00 20,233.00 90,000.00 1,953,456.00
33 69,767.00 19,535.00 89,302.00 1,883,689.00
34 69,767.00 18,837.00 88,604.00 1,813,922.00
35 69,767.00 18,140.00 87,907.00 1,744,155.00
36 69,767.00 17,442.00 87,209.00 1,674,388.00 255,350.00
37 69,767.00 16,744.00 86,511.00 1,604,621.00
38 69,767.00 16,047.00 85,814.00 1,534,854.00
39 69,767.00 15,349.00 85,116.00 1,465,087.00
40 69,767.00 14,651.00 84,418.00 1,395,320.00
41 69,767.00 13,954.00 83,721.00 1,325,553.00
42 69,767.00 13,256.00 83,023.00 1,255,786.00
43 69,767.00 12,558.00 82,325.00 1,186,019.00
44 69,767.00 11,861.00 81,628.00 1,116,252.00
45 69,767.00 11,163.00 80,930.00 1,046,485.00
46 69,767.00 10,465.00 80,232.00 976,718.00
47 69,767.00 9,768.00 79,535.00 906,951.00
48 69,767.00 9,070.00 78,837.00 837,184.00 154,886.00
49 69,767.00 8,372.00 78,139.00 767,417.00
50 69,767.00 7,675.00 77,442.00 697,650.00
51 69,767.00 6,977.00 76,744.00 627,883.00
52 69,767.00 6,279.00 76,046.00 558,116.00
53 69,767.00 5,582.00 75,349.00 488,349.00
54 69,767.00 4,884.00 74,651.00 418,582.00
55 69,767.00 4,186.00 73,953.00 348,815.00
56 69,767.00 3,489.00 73,256.00 279,048.00
57 69,767.00 2,791.00 72,558.00 209,281.00
58 69,767.00 2,093.00 71,860.00 139,514.00
59 69,767.00 1,396.00 71,163.00 69,747.00
60 69,747.00 698.00 70,445.00 - 54,422.00
4,186,000.00 1,276,750.00 5,462,750.00 ##########