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PROJECT AT A GLANCE - TOP SHEET

1 Name of the Entreprenuer MRS. MADHURI ASHOK PATIL

2 Constitution (legal Status) Individual :

3 Father's/Spouce's Name MR. BHIRMAO PATIL

4 Unit Address : AT POST PALUS


0
Taluk/Block: PALUS
District : PALUS
Pin: 416310 State: MAHARASHTRA
E-Mail shreyans@icai.org
:
Mobile 7745085133
5 Product and By Product

6 Cost of Project : ₹ 24,86,500


Name of the project / business
ENGINEERING WORKSHOP
activity proposed :
7 Means of Finance
Term Loan ₹ 23,62,175.00
KVIC Margin Money ₹ 8,70,275.00
Own Capital ₹ 124325.00

8 Debt Service :
Coverage Ratio

9 Pay Back Period : 5 Years

10 Project : 3 Months
Implementation

11 Break Even Point :

12 Employment : 25

13 Power Requirement : 7.5 hp

14 Major Raw materials : RAW MATERIALS,,

15 Estimated Annual : ₹ 8400000.00


Sales Turnover

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DETAILED PROJECT REPORT
1 INTRODUCTION :

This machine shop will carry out Milling (Machining), Pressing and Cutting proceses. Milling is a cutting process that
uses a milling cutter to remove material from the surface of a workpiece. The milling cutter is a rotary cutting tool,
often with multiple cutting points. In Pressing, with hydraulic press, various finishing jobs are carried out.
Apart from machining, the proprietor, with the help of same machinery, intends to take fabrication jobs also. This will
help him to run his factory with better efficiency by minimizing ideal times and to rip higher profits.

2 ABOUT THE PROMOTER :

This project is proposed in a proprietorship firm of Mrs. Madhuri Ashok Patil. Mrs. Madhuri Ashok Patil has decided to
start this project after studying the demand of such project and shortage against the existing demand. The day to
day working will be looked after by himself.

3 COST OF PROJECT
A. Fixed Capital Investment
a. Land : Own Own

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


FACTORY BUILDING 2200 400.00 880000.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0 0.00 0.00
Total 880000.00
#REF!
C. Machinery Qty. Rate Amount in ₹
MILLING MACHINE 1 160000.00 160000.00
HYDRAULIC PRESS 1 530000.00 530000.00
Swing Type Bandsaw 1 227000.00 227000.00
Other Tools and Equipments 0 200000.00 200000.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0 0.00 0.00
Total 1242000.00

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d. Preliminary & Pre-operative Cost : ₹ 0.00

e. Furniture & Fixtures : ₹ 50000.00

f. Contingency/Others/Miscellaneous : ₹ 0.00

Total Capital Expenditure : ₹ 2172000.00

Working Capital : ₹ 314500.00

Total Cost Project : ₹ 2486500.00

3.1 Means of Financing :


Own Contribution 5% ₹ 124325.00

Bank Finance : 95%


Term Loan ₹ 2063400.00
Working Capital ₹ 298775.00

Total ₹ 2362175.00

Margin Money (Govt. Subsidy) From KVIC 35% ₹ 870275.00


Margin Money Subsidy received From KVIC will be kept in term deposit as per norms of
PMEGP in the name of Beneficiary for three years in the financing branch.

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

Interest @
Year Opening Balance Installment Closing Balance
12.00%
1st 2063400 103170 1960230 247608
2nd 1960230 412680 1547550 235228
3rd 1547550 412680 1134870 185706
4th 1134870 412680 722190 136184
5th 722190 412680 309510 86663
6th 309510 412680 0 37141
7th 0 0 0 0
8th 0 0 0 0

WORKING CAPITAL

Interest @
Year Opening Balance Installment Closing Balance
12.00%
1st 298775 14939 283836 35853
2nd 283836 59755 224081 34060
3rd 224081 59755 164326 26890
4th 164326 59755 104571 19719
5th 104571 59755 44816 12549
6th 44816 59755 0 5378
7th 0 0 0 0
8th 0 0 0 0

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3.3 STATEMENT SHOWING THE DEPRECIATION ON FIXED ASSETS:
WORKSHED @ 10.00%
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Opening Balance 880000 792000 712800 641520 577368
Depreciation 88000 79200 71280 64152 57737
Closing Balance 792000 712800 641520 577368 519631
MACHINERY @ 20.00%
Opening Balance 1242000 993600 794880 635904 508723
Depreciation 248400 198720 158976 127181 101745
Closing Balance 993600 794880 635904 508723 406979
TOTAL DEPRECIATION
Workshed 88000 79200 71280 64152 57737
Machinery 248400 198720 158976 127181 101745
Total 336400 277920 230256 191333 159481

4 Schedule of Sales Realization :


4.1 Details of Sales
Rate/ No. of Amount in ₹
Particulars of Product
Pair/Unit Pair/Unit
0
Revenue from Machine Shop 3600000.00 1 3600000.00
Revenue from Fabrication 4800000.00 1 4800000.00
0 0.00 0 0.00
0 0.00 0 0.00
0 0.00 0 0.00
0 0.00 0 0.00
0 0.00 0 0.00

Total 8400000.00

4.2 Capacity Utilization of Sales


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

Capacity Utilization 70% 80% 90% 90% 90%

Sales / Receipts 5880000 6720000 7560000 7560000 7560000

5 Rawmaterials :
Particulars Unit Rate/unit Reqd.Unit Amount in ₹
RAW MATERIALS 0 4200000.00 1 4200000.00
0 0 0.00 0 0.00
0 0 0.00 0 0.00
0 0 0.00 0 0.00
0 0 0.00 0 0.00
0 0 0.00 0 0.00
0 0 0.00 0 0.00
0 0 0.00 0 0.00
Total 4200000.00
5.1 Wages :
No. of Wages Amount in ₹
Particulars
Worker Per Month (Per Annum)
Skilled Labours 8 8000.00 768000.00
Unskilled Labours 16 5500.00 1056000.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0 0.00 0.00
Total 24 1824000.00

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5.2 Repairs and Maintenance : ₹ 120000.00

5.3 Power and Fuel : ₹ 168000.00

5.4 Packing Expenses ₹ 0.00

6 Administrative Expenses :
6.1 Salary
Office Staff 1 8500.00 102000.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0.00 0.00
0 0.00 0.00
Total 1 102000.00

6.2 Telephone Expenses 168000.00

6.4 Stationery & Postage 0.00

6.5 Selling Commission & Expenses 84000.00

6.6 Workshed Rent 0.00

6.7 Other Miscellaneous Expenses 0.00


Total 354000.00
7 Capacity Utilization of Manufacturing & Administrative Expenses :
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Capacity Utilization 70% 80% 90% 90% 90%
Manufacturing Expenses
Rawmaterials 2940000 3360000 3780000 3780000 3780000
Wages 1276800 1459200 1641600 1641600 1641600
Repairs & Maintenance 84000 96000 108000 108000 108000
Power & Fuel 117600 134400 151200 151200 151200
Other Overhead Expenses 0 0 0 0 0
Administrative Expenses
Salary 102000 102000 102000 102000 102000
Postage Telephone Expenses 117600 134400 151200 151200 151200
Stationery & Postage 0 0 0 0 0
Advertisement & Publicity 58800 67200 75600 75600 75600
Workshed Rent 0 0 0 0 0
Other Miscellaneous Expenses 0 0 0 0 0
Total: 4696800 5353200 6009600 6009600 6009600
8 Assessment of Working Capital :
Particulars Amount in ₹
Sale 8400000.00

Manufacturing Expenses
Raw Material 4200000.00
Wages 1824000.00
Repair & Maintenance 120000.00
Power & Fuel 168000.00
Other Overhead Expenses 0.00

Production Cost 6312000.00


Administrative Cost 354000.00
Manufacturing Cost 6666000.00

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Working Capital Estimate :
Element of Working Capital No of Days Basis Amount in ₹
Raw Material 2 Material Cost 28000.00

Stock in process 2 Production Cost 42080.00

Finished goods 1 Manufacturing Cost 22220.00

Receivable by 10 Manufacturing Cost 222200.00

Total Working Capital Requirement Per Cycle 314500.00


9 Financial Analysis
9.1 Projected Profit & Loss Account :
Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Sales / Receipts 5880000 6720000 7560000 7560000
5880000 6720000 7560000 7560000
Manufacturing Expenses
Rawmaterials 2940000 3360000 3780000 3780000
Wages 1276800 1459200 1641600 1641600
Repairs & Maintenance 84000 96000 108000 108000
Power & Fuel 117600 134400 151200 151200
Other Overhead Expenses 0 0 0 0
Depreciation 336400 277920 230256 191333
Production Cost 4754800 5327520 5911056 5872133
Administrative Expenses
Salary 102000 107100 112455 118078
Postage Telephone Expenses 117600 134400 151200 151200
Stationery & Postage 0 0 0 0
Advertisement & Publicity 58800 67200 75600 75600
Workshed Rent 0 0 0 0
Other Miscellaneous Expenses 0 0 0 0
Administrative Cost 278400 308700 339255 344878
Interest on Bank credit @ 12%
Term Loan 247608 235228 185706 136184
Working Capital Loan 35853 34060 26890 19719
Cost of Sale 5316661 5905508 6462907 6372914
Net Profit Before Tax 563339 814492 1097093 1187086
Less Tax 169002 244348 329128 356126
Net Profit 394337 570144 767965 830960

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 394337 570144 767965 830960
Add :
Depreciation 336400 277920 230256 191333
TOTAL - A 730737 848064 998221 1022293
Payments :
On Term Loan :
Interest 247608 235228 185706 136184
Installment 103170 412680 412680 412680
On Working Capital
Interest 35853 34060 26890 19719
TOTAL - B 386631 681968 625276 568584
D.S.C.R = A/B
1.89 1.24 1.60 1.80
Average D.S.C.R

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9.3 PROJECTED BALANCE SHEET :
Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
LIABILITIES :
Promoters Capital 124325 124325 124325 124325
Profit 394337 570144 767965 830960
Term Loan 2063400 1960230 1547550 1134870
Working Capital Loan 298775 283836 224081 164326
Current Liabilities 0 0 0 0
Sundry Creditors 0 0 0 0
2880837 2938536 2663922 2254481
ASSETS :
Gross Fixed Assets : 2172000 1835600 1557680 1327424
Less : Depreciation 336400 277920 230256 191333
Net Fixed Assets 1835600 1557680 1327424 1136091
Preliminary & Pre-Op. Expenses 0 0 0 0
Current Assets 298775 283836 224081 164326
Cash in Bank/Hand 746462 1097019 1112416 954064
Total 2880837 2938536 2663922 2254481

9.4 CASH FLOW STATEMENT :


Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Net Profit 394337 570144 767965 830960
Add : Depreciation 336400 277920 230256 191333
Term Loan 2063400 0 0 0
Working Capital Loan 298775 0 0 0
Promoters Capital 124325 0 0 0
Total 3217237 848064 998221 1022293

Total Fixed Capital Invested 2172000

Repayment of Term Loan 103170 412680 412680 412680


Repayment of WC Loan 14939 59755 59755 59755
Current Assets 298775 283836 224081 164326
Total 416884 756271 696516 636761

Opening Balance 0 628354 720147 1021852


Surplus 628354 91793 301705 385532
Closing Balance 628354 720147 1021852 1407383

9.5 BREAK EVEN POINT AND RATIO ANALYSIS :


Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Fixed Cost 862408 821848 755217 672395
Variable Cost 4790653 5361580 5937946 5891852
Total Cost 5653061 6183428 6693163 6564247

Sales 5880000 6720000 7560000 7560000

Contribution (Sales-VC) 1089347 1358420 1622054 1668148

B.E.P in % 79.17% 60.50% 46.56% 40.31%

Break Even Sales in ₹ 4655045 4065618 3519883 3047276

Break Even Units 1 1 1 1

Current Ratio 0.74 0.38 0.33 0.26

Net Profit Ratio 6.71% 8.48% 10.16% 10.99%

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This Project Report has been prepared based on the data furnished by the entrepreneur whose details are
given in the application.
Place : SANGLI
Date: 22-Jan-18
Prepared by : CA SHREYANS TEJPAL SHAH
MRS. MADHURI ASHOK PATIL

Signature of the Beneficiary

CA Shreyans
Digitally signed by CA Shreyans
Tejpal Shah
DN: cn=CA Shreyans Tejpal Shah,

Tejpal Shah
o=T C Shah & Co., ou=Partner,
email=shreyans01@gmail.com, c=IN
Date: 2018.01.22 19:18:13 +05'30'

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