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PROJECT REPORT

M/S. SHLOKA AUTO POINT

CA SHREYANS TEJPAL SHAH


HIGHLIGHTS OF THE PROJECT

1. Name of the Firm : M/S. SHLOKA AUTO POINT

2. Address of unit : Proposed at B – 1, C S No. 524, Kolhapur Road,


Sangli

3. Constitution : Proprietorship

4. Nature of Activity : Wheel Alignment and Balancing Center

5. Contact Person : Mr. Shantanu Darianna Nage

6. Cost of Project : ₹ 12.20 Lacs

7. Means of Finance : Capital ₹ 3.05 Lacs

Bank Loan ₹ 9.15 Lacs

Total ₹ 12.20 Lacs

Project Report of M/s. Shloka Auto Point, prepared by CA Shreyans Tejpal Shah
PROJECT REPORT
OF
WHEEL ALIGNMENT AND BALANCING CENTER
M/S. SHLOKA AUTO POINT

INTRODUCTION

Wheel alignment, sometimes referred to as breaking or tracking, is part of standard


automobile maintenance that consists of adjusting the angles of wheels to the car
manufacturer specifications. The purpose of these adjustments is to reduce tire wear, and to
ensure that vehicle travel is straight and true (without "pulling" to one side). Alignment angles
can also be altered beyond the maker's specifications to obtain a specific handling
characteristic. Motorsport and off-road applications may call for angles to be adjusted well
beyond "normal", for a variety of reasons.

An increasing number of modern vehicles have advanced driver assistance systems


(ADAS) such as electronic stability control, anti-lock brakes, lane departure warning, adaptive
cruise control and traction control. These systems can be affected by mechanical alignment
adjustments. This has led many manufacturers to require electronic resets for these systems,
after a mechanical alignment is performed, ensure the wheel aligner you are considering to
allow you to meet these safety requirements.

Project Report of M/s. Shloka Auto Point, prepared by CA Shreyans Tejpal Shah
INTRODUCTION AND CONSTITUTION OF THE FIRM

This project is proposed by Mr. Shantanu Darianna Nage in his proprietary capacity
with the trade name as M/s. Shloka Auto Point.

The proprietor has completed ITI course for Motor Mechanic and has work experience
of more than 1 year in this field.

LAND AND BUILDING

This project is proposed at B – 1, C S No. 524, Kolhapur Road, Sangli. The said plot of
land is owned by proprietor’s father, which he consented to be used for this project.

Required building which will include a work shed, small tool room, etc. will be
constructed by the proprietor. The estimated cost of the same is ₹ 250000.

MACHINERY

All the required machinery has been listed out and quotations are already acquired
and attached herewith. The estimated cost of the same is ₹ 890000.

CAPACITY

Being a service industry, capacity cannot be defined and quoted. After studying the
existing demand and availability of the business, the proprietor estimates 10 jobs of Wheel
Alignment and Balancing per day. Further, as the proprietor is planning for heavy wheel

Project Report of M/s. Shloka Auto Point, prepared by CA Shreyans Tejpal Shah
alignments (for trucks and heavy vehicles), there is no much competition, which will help to
grow the business easily.

BENEFITS

Please note the pictorial depiction of tyre wear and effects of wheel alignment process
on the vehicle operations.

Project Report of M/s. Shloka Auto Point, prepared by CA Shreyans Tejpal Shah
Project Report of M/s. Shloka Auto Point, prepared by CA Shreyans Tejpal Shah
EFFLUENT

In this process water is used for processing but in process, it evaporates and no
effluent is generated. Other than that, water requirement is for domestic use. The domestic
waste water generated in this will be used for gardening purposes.

*****

Project Report of M/s. Shloka Auto Point, prepared by CA Shreyans Tejpal Shah
M/S. SHLOKA AUTO POINT

PROJECT OF WHEEL ALIGNMENT CENTER

COST OF PROJECT :
₹ Lacs

Land & Building Own

Building Improvement 2.50

Machinery
List of Machinery Attached 8.90

Electrical Installation & Erection 0.50

Water & Other Assets 0.30

12.20

MEANS OF FINANCE :

Equity Share Capital 3.05

Bank Term Loan 9.15

12.20

REQUIREMENT OF WORKING CAPITAL

1 Month Consumables 0.30

Other Current Assets 0.10

0.40

Margin 0.10

Bank Finance 0.30

Cash Credit 0.30

Project Report Of M/s. Shloka Auto Point, Prepared by CA Shreyans Tejpal Shah
INTEREST

Bank Term Loan @ 12.00% 1.10


Bank Cash Credit @ 12.00% 0.04

1.13

DEPRECIATION ₹ In Lacs

Building 10% 0.25


Machinery 15% 1.41

1.66

LABOUR Qty Salary per Month Months ₹ In Lacs

Skilled Labour 2 8500.00 12.00 2.04


Semi-Skilled Labour 2 6500.00 12.00 1.56

3.60

POWER

Load Connected 5.00 KW


Maximum Demand 5.00 KW
Consumption per day 25.00 Units
Consumption Per Year 7500.00 Units
Total Cost @ ₹ 10.50 0.79 ₹ Lacs

SALES / REVENUE ₹ Lacs


Nos / Day ₹ / Job

1. Wheel Alignment & Balancing 10.00 500.00 15.00


2. Balancing 6.00

21.00

CONSUMABLES ₹ Lacs

1. Consumables - General 0.60


2. Consumables - Balancing 3.00

3.60

Project Report Of M/s. Shloka Auto Point, Prepared by CA Shreyans Tejpal Shah
PROFITABILITY STATEMENTS : @ 80 % operating ₹ In Lacs

Sales 21.00

21.00

Less :
Consumables 3.60

Labour 3.60

Power 0.79

Maintenance & Mfg. Exps. @ 4 % 0.84

8.83 8.83

12.17
Less : T. L. Interest 1.10

C. C. Interest 0.04

Depreciation 1.66

2.79 2.79

Net Profit Before Tax 9.38

Less :- Income Tax @ 10% 0.94

Net Profit After I. Tax Prov. 8.44

Add :Depreciation 1.66

CASH ACCRUALS 10.10

Loan Repayment 1.83

D.S.C.R. 3.82

Project Report Of M/s. Shloka Auto Point, Prepared by CA Shreyans Tejpal Shah
M/S. SHLOKA AUTO POINT

PROFITABILITY STATEMENT (FIVE YEARS)

₹ in Lacs

PARTICULARS I II III IV V
Utilization % 80% 84.00% 88.20% 92.61% 97.24%
Sales 21.00 22.05 23.15 24.31 25.53

21.00 22.05 23.15 24.31 25.53

Less- Direct Expenditures


- Raw Material / Purchases 3.60 3.78 3.97 4.17 4.38
- Labour 3.60 3.78 3.97 4.17 4.38
- Power 0.79 0.83 0.87 0.91 0.96
- Mfg. Expenses 0.84 0.88 0.93 0.97 1.02

8.83 9.27 9.73 10.22 10.73

Gross Profit 12.17 12.78 13.42 14.09 14.80

Less- Indirect Expenditure :


- Interest on T. L. 1.10 0.88 0.66 0.44 0.22
- Interest on C. C. 0.04 0.04 0.04 0.04 0.04
- Depreciation 1.66 1.42 1.22 1.05 0.90

2.79 2.34 1.92 1.52 1.16

Net Profit Before I. Tax 9.38 10.44 11.50 12.57 13.64

Less- I. Tax Provision 0.94 1.04 1.73 2.51 2.73

Net Profit After I. Tax prov. 8.44 9.40 9.78 10.05 10.91

Add- Depreciation 1.66 1.42 1.22 1.05 0.90

Cash Accruals 10.10 10.82 11.00 11.10 11.81

Loan Repayment 1.83 1.83 1.83 1.83 1.83

D.S.C.R. 3.82 4.32 4.68 5.09 5.87

Average D.S.C.R. 4.76

Project Report Of M/s. Shloka Auto Point, Prepared by CA Shreyans Tejpal Shah
CASH FLOW & FUND FLOW STATEMENT

₹ in Lacs

I II III IV V

Sources of Funds

Cash Accruals 10.10 10.82 11.00 11.10 11.81

Increase in Capital 3.15 0.00 0.00 0.00 0.00

Increase in Term Loan 9.15 0.00 0.00 0.00 0.00

Increase in Bank Borrowing 0.30 0.00 0.00 0.00 0.00

Increase in U/S Loan 0.00 0.00 0.00 0.00 0.00

Total Application (A) 22.70 10.82 11.00 11.10 11.81

Disposition of Funds

Pre-op Expenses 0.00 0.00 0.00 0.00 0.00

Increase in Capital Expenditure 12.20 0.00 0.00 0.00 15.00

Decrease in Term Loan 1.83 1.83 1.83 1.83 1.83

Decrease in Unsecured loan 0.00 0.00 0.00 0.00 0.00

Interest 0.00 0.00 0.00 0.00 0.00

Withdrawals 6.00 6.00 6.00 6.00 6.00

Increase in Working Capital 0.40 0.05 0.05 0.05 0.05

Others (specify) 0.00 0.00 0.00 0.00 0.00

Total Disposition (B) 20.43 7.88 7.88 7.88 22.88

Opening Balance 0.00 2.27 5.21 8.33 11.56

Net Surplus (A-B) 2.27 2.94 3.12 3.22 -11.07

Closing Balance 2.27 5.21 8.33 11.56 0.49

Project Report Of M/s. Shloka Auto Point, Prepared by CA Shreyans Tejpal Shah
PROJECTED BALANCE SHEET

₹ in Lacs

I II III IV V
Liabilities

Proprietor's Capital 3.05 5.49 8.89 12.67 16.72

Profit for the year 8.44 9.40 9.78 10.05 10.91

Less Withdrawals 6.00 6.00 6.00 6.00 6.00

Capital in Business 5.49 8.89 12.67 16.72 21.63

Term Loans 7.32 5.49 3.66 1.83 0.00

Bank Borrowing for W. C. 0.30 0.30 0.30 0.30 0.30

Margin for W. C. 0.10 0.10 0.10 0.10 0.10

Total 13.21 14.78 16.73 18.95 22.03

Assets :

Gross Block 12.20 12.20 12.20 12.20 12.20

Depreciation 1.66 3.08 4.30 5.35 6.25

Net Block 10.54 9.12 7.90 6.85 5.95

Capital WIP 0.00 0.00 0.00 0.00 15.00

Current Assets 0.40 0.45 0.50 0.55 0.60

Cash & Bank balance 2.27 5.21 8.33 11.56 0.49

13.21 14.78 16.73 18.95 22.03


0.00 0.00 0.00 0.00 0.00

Note: -
Capital WIP denotes proposed expansion in future.

Project Report Of M/s. Shloka Auto Point, Prepared by CA Shreyans Tejpal Shah
INTEREST SCHEDULE :

₹ in Lacs

PARTICULARS TERM LOAN INTEREST CASH CREDIT INTEREST

12.00% 12.00%

BALANCE 9.15 0.30

[-] 1st Yr. Installment 1.83 1.10 0.00 0.04

BALANCE 7.32 0.30

[-] 2nd Yr. Installment 1.83 0.88 0.00 0.04

BALANCE 5.49 0.30

[-] 3rd Yr. Installment 1.83 0.66 0.00 0.04

BALANCE 3.66 0.30

[-] 4th Yr. Installment 1.83 0.44 0.00 0.04

BALANCE 1.83 0.30

[-] 5th Yr. Installment 1.83 0.22 0.00 0.04

BALANCE 0.00 0.30

Project Report Of M/s. Shloka Auto Point, Prepared by CA Shreyans Tejpal Shah
DEPRECIATION SCHEDULE

₹ in Lacs

PARTICULARS Building Machinery Total Depr.

10% 15%

OP. BALANCE 2.50 9.40

[-] 1st YR. Depr. 0.25 1.41 1.66

W. D. V. 2.25 7.99

[-] 2nd Yr. Depr. 0.23 1.20 1.42

W. D. V. 2.03 6.79

[-] 3rd YR. Depr. 0.20 1.02 1.22

W. D. V. 1.82 5.77

[-] 4th Yr. Depr. 0.18 0.87 1.05

W. D. V. 1.64 4.91

[-] 5th Yr. Depr. 0.16 0.74 0.90

W. D. V. 1.48 4.17

Project Report Of M/s. Shloka Auto Point, Prepared by CA Shreyans Tejpal Shah
BREAK EVEN POINT ANALYSIS

₹ In Lacs

I II III IV V

Fixed Costs

Depreciation 1.66 1.42 1.22 1.05 0.90

Interest on term loan 1.10 0.88 0.66 0.44 0.22

Wages / Salaries : Fixed : 80 % 2.88 3.02 3.18 3.33 3.50

Utilities : Fixed : 20 % 0.00 0.00 0.00 0.00 0.00

Rent / Lease 0.84 0.88 0.93 0.97 1.02

6.48 6.21 5.98 5.79 5.64

Variable Costs

Raw Materials 3.60 3.78 3.97 4.17 4.38

Power & Fuel 0.79 0.83 0.87 0.91 0.96

Salaries & Wages : Variable : 20% 0.72 0.76 0.79 0.83 0.88

Utilities : Variable : 80% 0.00 0.00 0.00 0.00 0.00

5.11 5.36 5.63 5.91 6.21

Contribution 15.89 16.69 17.52 18.40 19.32

P/V ratio (contribution to sales) 0.76 0.76 0.76 0.76 0.76

Break even sales Rs.Lacs 8.56 8.20 7.90 7.66 7.45

Break Even % 40.76% 37.20% 34.14% 31.49% 29.20%

Project Report Of M/s. Shloka Auto Point, Prepared by CA Shreyans Tejpal Shah