PROJECT REPORT OF M/S.

SHRI DEV WAREHOUSING, SHAHGARH

INTRODUCTION
M/S. SHRI DEV WAREHOUSING, SHAHGARH proposes to provide warehouse facility for agriculture crop and agriculture products at Village Shahgarh, T.- Banda (Belai) Distt. Sagar M.P. The proposed unit envisages to provide facility in the field of safe storage of agriculture crop by making standard warehouse with all type of required safety measures at Village Shahgarh T.- Banda (Belai) Distt. Sagar (M. P.). Demand of warehousing facility at such place is very high due to huge production of agriculture. The unit will get registered with Warehousing corp. further the Sagar district has been declared, as an industrial backward district by the central Govt. Therefore the unit will receive all sorts of facilities as applicable to a district of such a category. The total cost of project has been estimated at Rs. 25.00 Lacks out of which the equity will be 12.50 Lacks including NABARD Margin money Rs. 6.25 Lacks & Debt will be 12.50 Lacks, consequently the debt equity Ratio comes 1.00 : 1.00, moreover the unit will generate enough cash to reply the entire Term loan along with interest within stipulated time duration.

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PROJECT REPORT OF M/S. SHRI DEV WAREHOUSING, SHAHGARH

CONSTITUTIONS
M/S. SHRI DEV WAREHOUSING, SHAHGARH is a proprietorship concern formed with the objective to provide warehousing facility as well as other trading and mfg. activities. The promoter of this unit is Mr. DEVENDRA KUMAR JAIN S/O. Shri JINENDRA KUMAR JAIN aged 26 years permanent resident of Ward No. 15, Bada Bazar, Shahgarh T. Banda, Dt. - Sagar (M.P.). The promoter of this unit is an experienced person having very good knowledge about forming practices as well as of farming techniques & Storage of Grains as he is also a farmer, doing farming from last so many years. At present Promoters family having about 40 acre of agriculture land in surrounding areas. The Promoters family has also been running business of grains at Shahgarh itself. By doing so, promoters has acquired adequate business experiences as well as conversant with technological and marketing aspect of proposed unit.

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PROJECT REPORT OF M/S. SHRI DEV WAREHOUSING, SHAHGARH

PROJECT AT A GLANCE
1. 2. 3. 4. 5. 7. 9. 10. Unit Location Status Storage capacity Man-power Cost of Project Means of Finance i) DEBT Term loan ii) EQUITY Promote Contribution NABARD Subsidy 11. 12. Debt Equity Ratio Profitability Estimates i) Debt Service Coverage Ratio : ii) Break Even Point : 2.06 time on an average at 75% to 55% of Capacity during first to fifth Year : : : 6.25 Lacks 6.25 Lacks 1.00 : 1.00 : 12.50 Lacks : : : : : : M/S. SHRI DEV WAREHOUSING Shahgarh, T. - Banda (Belai) Proprietorship Firm 1000 M.T. 4,50,000 2 Person 25.00 Lacks

Annual Rent Realisation (@100%) :

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PROJECT REPORT OF M/S. SHRI DEV WAREHOUSING, SHAHGARH

SITE DETAILS
1. Location : Gram Shahgarh T. - Banda (Belai) Dt.- Sagar M.P. 2. 3. 4. Power Water Transport Facility : : : Available through M.P.E.B. Available from Well / Tube well By Road : Location is on Sagar Tikamgarh Road hence adequate transport facility is available 5. 6. 7. Medical Facility Post Office Bank Facility : : : Available Available Available

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PROJECT REPORT OF M/S. SHRI DEV WAREHOUSING, SHAHGARH

MARKET POTENTIALITY
Indian economy is solely based on agriculture; in India agriculture is main source of livelihood for around 75% of the population in India. So agriculture and agricultural growth occupies a high degree of importance in the development of country. Our storage techniques have been turning from conventional subsistence storage to safe warehousing, so this leads to the increase of demand for standard storeroom. Banda as well as Shahgarh and its adjoining areas are well known for its agriculture products viz. Soyabeen, Gram, Alsi and other crop. The economy of this area is directly depending upon agriculture products. Thus the area itself has lot of potential for warehousing. Looking at the present trend of agriculture growth in country there is huge existing demand of warehousing. The warehousing facilities have continued demand all over the year because there is wide variety of agriculture crop and agriculture products. Thus the unit must have demand for the whole period of year.

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PROJECT REPORT OF M/S. SHRI DEV WAREHOUSING, SHAHGARH

ASSUMPTIONS
The cost of storing and profitability of the project for its first five operating years is calculated which is presented later on. The various assumptions made for the calculation of cost of production and profitability is listed below: 1. 2. The unit will work for all 365 days. The capacity utilisation has been assumed at 80% in the first year, 85% in the Second year, 90% in the third year and 95% in the fourth year onwards. 3. The rent rate is considered without labor charges basis, based on prevailing market rate. 4. 5. The details of manpower and wages are on the basis of industry practice. Employees benefits have been taken at 10% of wages and salaries, which include benefits, house rent, gratuity, paid leave etc. 6. In case of Receipts in every third year an increase of 10% has been assumed. 8. The interest on term loan & working capital has been taken @ 11.00% per year. 9. Operational year means year of operation.

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PROJECT REPORT OF M/S. SHRI DEV WAREHOUSING, SHAHGARH

CONCLUSION AND RECOMMENDATION

M/S. SHRI DEV WAREHOUSING, SHAHGARH, T. - BANDA is a newly formed unit, which has been established to provide storage facility at Gram Shahgarh T. - Banda (Belai) Dt. Sagar (M.P.). In our country agriculture produces require huge space but availability is still too sorted, thus there is adequate market available for warehousing. The firm is going to register with warehousing authority, Sagar further, the Sagar is declared as industrially back ward district therefore the unit will receive allsorts of facilities like income Tax & Sales Tax exemption, NABARD subsidy etc. as applicable to such category of district. The proprietor of the unit have gained the enough experience in he is also a former and his family also in the same line of business therefore; this is possible for him to run the unit economically & successfully as per quality standard. The other benefits occurring from the project will be in form of generation of employment opportunity in the backward area. Considering all the above facts like technical feasibility, economic & commercial viability of the project, the consultant recommend viability support from the financial institutions like NABARD, DIC, Bank and other govt. dept. etc.

For SUDEEP JAIN AND CO; CHARTERED ACCOUNTANTS PLACE : DATE : SAGAR 30TH JANUARY, 2009 (SUDEEP J. JAIN) PROPRIETOR M. No. 1088555

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