Total project cost

Infrastructure Capital

land 2,500,000.00
site development cost@Rs.45 per mtr. 0.00
civil construction cost 16,000,000.00
furniture and fixtures 1,250,000.00
plant & machinery 85,000,000.00
Technical fees 0.00
other equipment 250,000.00
Pre Operative Expenses 50,000.00
operating cost 5,749,700.00 110,799,700.00

Total Cost of Project 110,799,700.00

Debt Equity Ratio 60-40

Debt Capital 66479820

Equity Capital 44319880
Total Cost
land area construction construction
required(in sq. ft) area in sq. feet cost per sq. feet
BUILDING
main shed 50,000.00 50,000.00 400.00
godown 3,000.00 3,000.00 300.00
staff quarters 1,000.00 2,000.00 400.00
canteen+restrooms 2,000.00 2,000.00 300.00
pump room 500.00 500.00 300.00
water tank 500.00 500.00 400.00
bore well 100.00

administrative office block 2,000.00 6,000.00 1,000.00

59,100.00
F.A.R 2.00
total land area required in
sq. feet 118,200.00
in sq metres 10,985.13
total land area acquired in
sq. metres 12,000.00
cost of land per sq. mtr. 1,000.00
other charges 80.00
total cost of land 12,960,000.00
construction
total cost (in Rs.)

20,000,000.00
900,000.00
800,000.00
600,000.00
150,000.00
200,000.00
200,000.00

6,000,000.00
28,850,000.00

41,810,000.00
List of Machineries

Item No. Name of Machinery Manufacturer Capacity Cost

WG-16A Wire Mesh EAGLEWOOD ENGINEERS 900 pcs/hr. 6,579,000.00
25, Kustia Masjid Bari Lane
Kolkatt, West Bengal
India- 700039
Tel. 91-33-23439014
DL-C6RT/40 Lawrie Tea Processor 700 pcs/hr 1,715,000.00

6C-XD789 Fermentor-Drier 500 pcs/hr 8,330,000.00

PDS5-2725 Sorter 150 kg/hr 9,554,000.00

RT-P43A Packaging 1 200 pcs/hr 12,505,000.00

RT-P43B Packaging 2 150 pcs/hr 4,850,000.00

43,533,000.00
Power Consumption
15 kw/h

17.5 kw/h

12.5 kw/h

4 kw/h

6 kw/h

10 kw/h
65 kw/h
 Year 1 Year 2 Year 3
Cost of Raw leaf per kg Rs. 10 Rs.11 Rs.12
Consumption per unit output 5 kg 5 kg 5 kg
Cost of raw material per unit output Rs.50 Rs.55 Rs.60

No. of machine hours per day 16 16 16

No. of units produced per hour 62.5 kgs 62.5 kgs 62.5 kgs
No. of units produced per day 1000 kgs 1000 kgs 1000 kgs

No. of Working Days in a year 300 300 300

No. of units produced annually 300000 kgs 300000 kgs 300000 kgs

Total input during the year (Output*5) 1500000 kgs 1500000 kgs 1500000 kgs
Total cost of input raw material Rs. 15000000 Rs. 1,650,000 Rs. 1,800,000

Daily wage rate of semiskilled labour Rs. 160 Rs. 168 Rs. 176
No. of semiskilled labours 100 100 100
No. of working days 300 300 300
total wages of unskilled labour Rs.4800000 Rs. 5,040,000 Rs. 5,280,000

Daily wage rate of skilled labour Rs. 320 Rs. 336 Rs. 353
No. of skilled labours 40 40 40
No. of working days 300 300 300
total wages of skilled labour Rs.3840000 Rs. 40,320,000 Rs. 42,360,000

Hourly Power Consumption 65 kw/h 65 kw/h 65 kw/h

no. of machine hours per day 16 16 16
No. of working days 300 300 300
total power consumption 312000 kw/h 312000 kw/h 312000 kw/h
cost per kw of power Rs. 12 12.5 13
total cost of power Rs. 3744000 3900000 4056000

annual salary of each asst manager Rs. 180000 189,000 198,450

no. of asst. managers 4 4 4
total salary of asst. managers Rs.720000 756,000 793,800

annual salary of each manager Rs. 300000 315,000 330,750

no. of managers 2 2 2
total salary of managers Rs. 600000 630,000 661,500

other factory expenses (annual) Rs.180000 189,000 198,450

 Year 4 Year 5 Year 6 Assumptions
Rs,13 Rs.14 Rs.15 Rs. 1 increase every year
5 kg 5 kg 5 kg
Rs.65 Rs.70 Rs.75

16 16 16
62.5 kgs 62.5 kgs 62.5 kgs
1000 kgs 1000 kgs 1000 kgs

300 300 300

300000 kgs 300000 kgs 300000 kgs

1500000 kgs 1500000 kgs 1500000 kgs

Rs. 1,950,000 Rs. 2,100,000 Rs. 22,500,000

Rs. 185 Rs. 194 Rs. 204 5% increse evey year

100 100 100
300 300 300
Rs. 5,550,000 Rs. 5,820,000 Rs. 6,120,000

Rs. 370 Rs. 389 Rs. 408 5% increse evey year

40 40 40
300 300 300
Rs. 44,400,000 Rs. 46,680,000 Rs. 48,960,000

65 kw/h 65 kw/h 65 kw/h

16 16 16
300 300 300
312000 kw/h 312000 kw/h 312000 kw/h
13.5 14 14.5 Rs.0.50 per year
4212000 4368000 4524000

208,373 218,791 229,731 5% increse evey year

4 4 4
833,490 875,165 918,923

347,288 364,652 382,884 5% increse evey year

2 2 2
694,575 729,304 765,769

208,373 218,791 229,731 5% increse evey year

,,
Schedule for depriciation

other buildings Factory Building Plant & Machinery Furniture & Fixtures
Rate 5% 10% 20.87% 18.10%
no. of working days 300 365 365 365
Book Value 0 1600000 85000000 1250000
Depreciation for yr 1 0 131507 14580411 185959
WDV 0 1468493 70419589 1064041
Depreciation for yr 2 0 120698 12079371 158294
WDV 0 1347795 58340218 905747
Depreciation for yr 3 0 110778 10007345 134745
WDV 0 1237017 48332873 771001
Depreciation for yr 4 0 101673 8290743 114700
WDV 0 1135345 40042130 656302
Depreciation for yr 5 0 93316 6868597 97636
WDV 0 1042029 33173533 558666
Depreciation for yr 6 0 85646 5690397 83111
WDV 0 956383 27483136 475555

Schedule for loan repayment

year opening balance repay intrest@9.5%

1 66479820 12087240 6315583
2 54392580 12087240 5167295
3 42305340 12087240 4019007
4 30218100 12087240 2870720
5 18130860 12087240 1722432
6 6043620 6043620 287072
Other Equipment Total
13.91%
365
250000 88100000
28582 14926459
221418 73173541
25314 12383678
196103 60789863
22420 10275289
173683 50514575
19857 8526972
153826 41987602
17587 7077135
136239 34910467
15576 5874730
120663 29035737

closing balance
54392580
42305340
30218100
18130860
6043620
0
56689800 10307236 5385531 46382564
46382564 10307236 4406344 36075328
36075328 10307236 3427156 25768092
25768092 10307236 2447969 15460856
15460856 10307236 1468781 5153620
5153620 5153620 489594 0
Projected Cost Sheet
Year 1 Year 2 Year 3 Year 4 Year 5
Particulars Amount Amount Amount Amount Amount

Direct Material consumed

Opening stock of raw material 0 0 0 0 0
Add: Purchases 8591900 16500000 18000000 19500000 21000000
8591900 16500000 18000000 19500000 21000000
Less: Closing Stock 0 0 0 0 0
8591900 16500000 18000000 19500000 21000000
Direct Wages 8640000 9072000 9516000 9990000 10488000

Power Consumption and fuel charges 2000000 3900000 4056000 4212000 4368000
Prime Cost 19231900 29472000 31572000 33702000 35856000

Factory Overheads 1500000 1575000 1653750 1736437 1823258

Factory Cost 28884000 31047000 33225750 35438437 37679258

Office and Administrative Cost 6000000 6300000 6615000 6945750 7293037

Total cost of Production 34884000 37347000 39840750 42384187 44972295

Add: Opening Stock of finished goods 0 2907000 3096462 3302862 3096462

Cost of goods available for sale 34884000 40254000 42937212 45687049 48068757

Less: Closing Stock of finished goods 2907000 3096462 3302862 3096462 3302862
Cost of goods sold 31977000 37157538 39634349 42590588 44765894

Selling and Distribution Expenses 6000000 5700000 5415000 5144250 4887037

Total Cost = cost of sales 37977000 42857538 45049349 47734838 49652931

Profit (45% of cost of sales) 17089650 19285892 20272207 21480677 22343819

Sales 55066650 62143431 65321556 69215515 71996750

 Projected Per Unit Cost Sheet
Year 6 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Amount Amount/unit Amount/unit Amount/unit Amount/unit Amount/unit Amount/unit
output output output output output output

0
22500000
22500000
0
22500000 Rs. 28.64 Rs. 55.00 Rs. 60.00 Rs. 65.00 Rs. 70.00 Rs. 75.00
11016000 Rs. 28.80 Rs. 30.24 Rs. 31.72 Rs. 33.30 Rs. 34.96 Rs. 36.72

4524000 Rs. 6.67 Rs. 13.00 Rs. 13.52 Rs. 14.04 Rs. 14.56 Rs. 15.08
38040000 Rs. 64.11 Rs. 98.24 Rs. 105.24 Rs. 112.34 Rs. 119.52 Rs. 126.80

1914420 Rs. 5.00 Rs. 5.25 Rs. 5.51 Rs. 5.79 Rs. 6.08 Rs. 6.38
39954420 Rs. 96.28 Rs. 103.49 Rs. 110.75 Rs. 118.13 Rs. 125.60 Rs. 133.18

7657688 Rs. 20.00 Rs. 21.00 Rs. 22.05 Rs. 23.15 Rs. 24.31 Rs. 25.53
47612108 Rs. 116.28 Rs. 124.49 Rs. 132.80 Rs. 141.28 Rs. 149.91 Rs. 158.71

3302862 Rs. 116.28 Rs. 116.28 Rs. 123.86 Rs. 132.11 Rs. 123.86 Rs. 132.11
50914970 Rs. 116.28 Rs. 123.86 Rs. 132.11 Rs. 140.58 Rs. 147.90 Rs. 156.66

3096462 Rs. 116.28 Rs. 123.86 Rs. 132.11 Rs. 140.58 Rs. 147.90 Rs. 156.66
47818509 Rs. 116.28 Rs. 123.86 Rs. 132.11 Rs. 141.97 Rs. 149.22 Rs. 159.40

4642685 Rs. 21.82 Rs. 19.00 Rs. 18.05 Rs. 17.15 Rs. 16.29 Rs. 15.48
52461194 Rs. 138.10 Rs. 142.86 Rs. 150.16 Rs. 159.12 Rs. 165.51 Rs. 174.87

23607537 Rs. 62.14 Rs. 64.29 Rs. 67.57 Rs. 71.60 Rs. 74.48 Rs. 78.69

76068731 Rs. 200.24 Rs. 207.14 Rs. 217.74 Rs. 230.72 Rs. 239.99 Rs. 253.56
Projected Income Statement
Year 1 Year 2 Year 3
Income
Sales 55,066,650 62,143,430 65,321,556
Other Income 0 0 0
55,066,650 62,143,430 65,321,556
Expenditure
Coat of sales 37,977,000 42,857,538 45,049,349
Financial Expenses 5,385,531 4,406,344 3,427,156
Depriciation 9,750,677 8,280,495 7,047,380
53,113,208 55,544,377 55,523,885
Net Profit Before Tax 1,953,442 6,599,053 9,797,671

Less: Taxation (34%) 664,170 2,243,678 3,331,208

Net Profit After Tax 1,289,272 4,355,375 6,466,463

Add: opening balance 0 1,289,272 5,644,647

Balance c/f 1,289,272 5,644,647 12,111,110

 Year 4 Year 5 Year 6

69,215,515 71,996,750 76,068,731

0 0 0
69,215,515 71,996,750 76,068,731

47,734,838 49,652,931 52,461,194

2,447,969 1,468,781 244,797
6,011,890 5,141,243 4,408,185
56,194,697 56,262,955 57,114,176
13,020,818 15,733,795 18,954,555

4,427,078 5,349,490 6,444,549

8,593,740 10,384,305 12,510,006

12,111,110 20,704,849 31,089,154

20,704,849 31,089,154 43,599,160

Projected Cash Flow Statement
Year 1 Year 2 Year 3
Cash flow from operating activities
Net profit for the year 1,289,272 4,355,375 6,466,463
Add: Non Cash Charges
Depriciation 9,750,677 8,280,495 7,047,380
transfer to general reserve
finacial charges 5,385,531 4,406,344 3,427,156
16,425,480 17,042,214 16,940,999
Working Capital
Increase in current asset (2,907,000) (5,368,081) (471,245)
Increase in Current Liabilities 0 2750000 250000

net cash flow from operating activities 13,518,480 14,424,133 16,719,754

Cash flow from financing activities
repayment of loan (11,616,327) (11,616,327) (11,616,327)
finacial charges (5,385,531) (4,406,344) (3,427,156)
net cash flow from financing activities (17,001,858) (16,022,671) (15,043,483)

net cash flow from (A+B) (3,483,378) (1,598,538) 1,676,271

Add:
opening balance 0 (3,483,378) (5,081,916)
closing balance (3,483,378) (5,081,916) (3,405,645)
 Year 4 Year 5 Year 6

8,593,740 10,384,305 12,510,006

6,011,890 5,141,243 4,408,185

2,447,969 1,468,781 489,594

17,053,599 16,994,329 17,407,785

(536,023) (414,978) (558,271)

250000 250000 250000

16,767,576 16,829,351 17,099,514

(11,616,327) (11,616,327) (5,808,165)

(2,447,969) (1,468,781) (244,797)
(14,064,296) (13,085,108) (6,052,962)

2,703,280 3,744,243 11,046,552

(3,405,645) (702,364) 3,041,879

(702,364) 3,041,879 14,088,431
Schedule of Working Capital

Year 1 Year 2 Year 3 Year 4 Year 5

Current Assets
Cash in Hand or Bank (3,483,378) (5,081,916) (3,405,645) (702,364) 3,041,879
Stock of finished goods 2907000 3096462 3302862 3514388 3697597
Debtors 0 5178619 5443463 5767960 5999729

Total Current Assets -576378 3193165 5340680 8579984 12739205

Current Liabilities
Creditors 0 2750000 3000000 3250000 3500000

Net Working Capital -576378 443165 2340680 5329984 9239205

 Year 6

14,088,431
3916536
6339061

24344028

3750000

20594028
 62,143,430 65,321,556 69,215,515 71,996,750
Rs. 116.28 Rs. 123.86 Rs. 132.11 Rs. 140.58 Rs. 147.90 Rs. 156.66

5368081 471245 536023 414978 558271

0
0 15000000 16500000 18000000 19500000
2750000 250000 250000 250000 250000

1019543 1897516 2989304 3909221 11354823

76,068,731

21000000 22500000
Projected Balance Sheet

Sources of Fund
Owned Funds
Capital 37,793,200 37,793,200 37,793,200 37,793,200
Reserve and Surplus 1,289,272 5,644,647 12,111,110 20,704,849
Borrowed Funds
Secured Loans 46,382,564 36,075,328 25,768,092 15,460,856
Unsecured loans 0 0 0 0
Total Capital Employed 85,465,036 79,513,175 75,672,402 73,958,905

Application of funds
Fixed Assets
Gross Block 91,443,000 91,443,000 91,443,000 91,443,000
Less: Depriciation 9,750,677 18,031,172 25,078,552 31,090,442
Net Block 81,692,323 73,411,828 66,364,448 60,352,558
Investments 0 0 0 0
Working Capital
Current Assets Loans & Advances -576378 3193165 5340680 8579984
Less: Current Liabilities & Provisions 0 2750000 3000000 3250000
-576,378 443,165 2,340,680 5,329,984
Miscellaneous Expenditure 3,040,000 3,040,000 3,040,000 3,040,000
Total Capital Employed 84,155,945 76,894,993 71,745,128 68,722,542
37,793,200 37,793,200
31,089,154 43,437,594

5,153,620 0
0 0
74,035,974 81,230,794

91,443,000 91,443,000
36,231,685 40,639,870
55,211,315 50,803,130
0 0

12739205 24344028
3500000 3750000
9,239,205 20,594,028
3,040,000 3,040,000
67,490,520 74,437,158
Calculation of project IRR

Net Profit After Add: Depriciation Net Cash Flow PV Factor @ PV Factor @
Year Tax and Intrest After Tax 10% PV of CFAT 14%
1 1,289,272 15,136,208 16,425,481 0.9091 14932255 0.8772
2 4,355,375 12,686,839 17,042,216 0.8264 14084476 0.7695
3 6,466,463 10,474,536 16,941,002 0.7513 12728026 0.6750
4 8,593,740 8,453,859 17,047,603 0.6830 11643742 0.5921
5 10,384,305 6,610,024 16,994,334 0.6209 10552144 0.5194
6 12,510,006 4,897,779 17,407,791 0.5645 9826244 0.4556
Fixed Assets 50,803,130 0.5645 28678367 0.4556
102,445,255
Calculation of equity IRR

Net Profit After Net Cash Flow PV Factor @ PV Factor @

Year Tax Add: Depriciation After Tax 40% PV of CFAT 30%
1 1,289,272 9750677 11,039,950 0.7143 7885679 0.7692
2 4,355,375 8280495 12,635,872 0.5102 6446873 0.5917
3 6,466,463 7047380 13,513,846 0.3644 4924871 0.4552
4 8,593,740 6011890 14,605,634 0.2603 3801966 0.3501
5 10,384,305 5141243 15,525,553 0.1859 2886735 0.2693
6 12,510,006 244797 12,754,809 0.1328 1693970 0.2072
Fixed Assets 50,803,130 0.1328 6746656 0.2072
34386750
 5,432,344 4,225,156 3,017,969
### 8,280,495 7,047,380 6,011,890 1,810,781 603,594
### 5,141,243 4,408,185
PV of CFAT total pv of cfat @ 10% 102,445,255
14408317 total pv of cfat @ 14% 88,952,978
13113432 total cash inflow 94,483,000
11434694
10093550 11.1802684980861
8826325
7930755
23145906
88952978

PV of CFAT
8492269
7476847 total pv of cfat @ 40% 34386750
6151045 total pv of cfat @ 30% 44584384
5113838 total equity inflow 37793200
4181483
2642493 31.3319136945084
10526409
44584384
 5,385,531 5,385,531 5,385,531 5,385,531
9,750,677 9,750,677 9,750,677 9,750,677
15,136,208 ### ### ###

5,385,531 4,406,344 3,427,156 2,447,969

9,750,677 8,280,495 7,047,380 6,011,890
15,136,208 ### ### 8,459,859

6791184 7,962,255
10197634 13,492,277
0.665957 0.5901342
 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

5,385,531 5,385,531 ### ### ### ###

9,750,677 9,750,677 0 0 0 0
### ### ### ### ### ###

1,468,781 244,797 ### ### ### ###

5,141,243 4,408,185 ### ### ### ###
6,610,024 4,652,982 3,862,429 2,758,878 1,655,327 603,594
7,047,380 6,011,890 5,141,243 4,408,185
### ### ### ###

### ### ### ###

3,734,570 3,775,178 5,436,052 5,377,881

7,249,459 7,328,288 ### ###

0 #REF! #REF! #REF! #REF! #REF!

#REF! #REF! #REF! #REF! #REF! #REF!

Calculation of DSCR
Net Profit After Add: Depriciation Net Cash Flow
Year Tax and Intrest After Tax
1 1,289,272 15,136,208 16,425,481
2 4,355,375 12,686,839 17,042,216
3 6,466,463 10,474,536 16,941,002
4 8,593,740 8,453,859 17,047,603
5 10,552,336 6,610,024 17,162,365
6 12,348,440 4,897,779 17,246,225

Calculation of Break Even Point

Year 1 Year 2 Year 3 Year 4
Sales 55,066,650 62,143,430 65,321,556 69,215,515
less: operating expenses 37,977,000 42,857,538 45,049,349 47,734,838
contribution 17,089,650 19,285,892 20,272,207 21,480,677
less: fixed cost 15,136,208 12,686,839 10,474,536 8,453,859
Net Profit 1,953,442 6,599,053 9,797,671 13,026,818
PV Ratio = contribution/sales 0.31 0.31 0.31 0.31
BEP = FC/PVR 48,772,226 40,879,815 33,751,283 27,240,212
BEP as % of sales 88.57 65.78 51.67 39.36
Debt Obligation DSCR
15,692,767 1.047 total DSCR 9.427
14,713,580 1.158
13,734,392 1.233
12,755,205 1.337 Avg. DSCR 1.5711719
11,776,017 1.457
5,398,417 3.195

Year CFAT Cumulative CFAT

1 16425481 16425481
2 17042216 33467697
Year 5 Year 6 3 16941002 50408699
71,996,750 76,068,731 4 17047603 67456302
49,652,931 52,461,194 5 17162365 84618667
22,343,819 23,607,537 6 17246225 101864892
6,610,024 4,897,779
15,733,795 18,709,758 Total cash inflow 94,483,000
0.31 0.31 Pay Back Period 5.572
21,298,966 15,781,732
29.58 20.75
 10307236 5385531
10307236 4406344
10307236 3427156
10307236 2447969
10307236 1468781
5153620 244797

years
Projected Income Statement for first year
Year 1

Oringinal 5 % increase in raw 5 % decrease in Both situations

Income Value material cost selling price simultaneously
Sales 55,066,650 55,066,650 52,313,318 52,313,318
Other Income 0 0 0 0
55,066,650 55,066,650 52,313,318 52,313,318
Expenditure
Coat of sales 37,977,000 38,052,000 37,977,000 38,052,000
Financial Expenses 5,385,531 5,385,531 5,385,531 5,385,531
Depriciation 9,750,677 9,750,677 9,750,677 9,750,677
53,113,208 53,188,208 53,113,208 53,188,208
Net Profit Before Tax 1,953,442 1,878,442 -799,891 -874,891

Less: Taxation (34%) 664,170 638,670 0 0

Net Profit After Tax 1,289,272 1,239,772 -799,891 -874,891

Add: opening balance 0 0 0 0

Balance c/f 1,289,272 1,239,772 -799,891 -874,891

Sensitivity Analysis

5 % increase in 5 % decrease in Both situations

Oringinal Value raw material cost selling price simultaneously
Project IRR 11.1802685 11.173757 10.9031997 10.893209
Equity IRR 31.33191369 31.32479923 31.02830816 31.01728026
DSCR 1.5711719 1.5706462 1.5489838 1.5481872
BEP 48772226 48987212 55232122 55522587
P/v Ratio 0.31 0.31 0.27 0.27
BEP as % of sales 88.57 88.96 105.58 106.13