PROJECT REPORT

M/S RAUNAK ENTERPRISES

(Prop. Smt. Deu Bai Bairagi)
Village- Eral , Dist. Chittorgarh -312001
PROJECT REPORT
M/S RAUNAK ENTERPRISES
(Prop. Smt. Deu Bai Bairagi)
Village- Eral , Dist. Chittorgarh -312001

COST OF PROJECT Amount (Rs.)

Land & Building Rented

Plant & Machinery 1500000.00
Working Capital Margin 1000000.00

Total 2500000.00

SOURCES OF FINANCE

Own Contribution 125000.00

Term Loan from Financial Banks 1425000.00
Working Capital Limits 950000.00

Total 2500000.00
 FIXED ASSETS DETAILS :-

AMOUNT (RS.)

1 LAND & BUILDING Rented

(At Village Eral , Tehsil & Dist.-Chittorgarh ) Total Rented

2 PLANT & MACHINERY

Sr. No. Particulars Qty Rate Amount Supplier

1 Roto Saprator 2 Nos. 90000.00 180000.00 Any reputed

Supplier
2 Elerator 5 Nos. 75000.00 375000.00 Any reputed
Supplier
3 Schorer 1 Nos. 60000.00 60000.00 Any reputed
Supplier
4 Dry Stoner 2 Nos. 130000.00 260000.00 Any reputed
Supplier
5 Jau Machine 3 Nos. 130000.00 390000.00 Any reputed
Supplier
6 15 HP Blower 1 Nos. 58600.00 58600.00 Any reputed
Supplier
7 15 HP Cyclone & Dust Collector 1 Nos. 90000.00 90000.00 Any reputed
Supplier
8 Air Lock with Motor 1 Nos. 15000.00 15000.00 Any reputed
Supplier
1428600.00
GST @ 5% 71430.00
Total 1500030.00
Say Rs. 1500000.00
A RECURRING EXPENSES :
BASIS
Working Day Per Annum 300
No. of Shift Per Day One Shift
No. of effective working 8 Hrs
Installed Capacity 540 M.T. Wheat Per Year
for Wheat Cleaning

Capacity Utilisation (%)

1 st Year 70%
2 nd Year 75%
3 rd Year 80%
Capacity Envisaged 432 M.T. Wheat

COST OF PRODUCTION :-

1 Raw Material Consumed (Per Year)

Wheat 436 M.T. @ Rs. 15000/- Per MT 6540000.00
Considering 1% Wastage in Process

Total 6540000.00
Say Rs. 65.40 Lac

2 Consumbales

Packing Material 30 Kg. Bags 172800.00

Total Bags 14400 @ Rs. 12/- Per Bag

Total 172800.00
Say Rs. 1.72 Lac

3 Utlilites

Power Rs. 10000/- Per Month 10000x12 Month 120000.00

Total 120000.00
Say Rs. 1.20 Lac
4 Salary & Wages

Category Nos. Monthly / Salary Total

Salary & Wages

Accountant cum Assistant 1 2000 24000.00
Main Machine Operator 1 7000 84000.00
Semi Skilled Workers 15 4000 720000.00
Total 828000.00

Total Salary & Wages Per Month 69000.00

Total Salary & Wages Per Annum (12 Months) 828000.00

Say Rs. 8.28 Lac

5 Repair & Maintenance
2.5% of Cost of Fixed Assets 15.00Lac 37500.75
Total 37500.75
Say Rs. 0.38 Lac
6 Administrative Expenses
Postage, Telephone & Telegram 4000.00
Legal & Professional Charges 8000.00
Printing & Stationery 5000.00
Insurance 8000.00
Rent , Rates & Taxes 22000.00
Misc. Expenses 10000.00
Travelling Expenses 27000.00

Total 84000.00
Say Rs. 0.84 Lac

7 Depreciation
Plant & Machinery & Misc. Fixed Assets of Rs. 15.00 Lac @ 15% 225004.50

Total 225004.50
Say Rs. 2.25 Lac
8 Interest

Term Loan of Rs. 14.25 Lac @ 11% p.a 156750.00

Bank CC Limit of Rs. 9.50 Lac @ 11% p.a. 104500.00

Total 261250.00
Say Rs. 2.61 Lac

9 Sales Realisation

432 MT Wheat @ Rs. 20000/- Per MT 8640000.00

Total 8640000.00
Say Rs. 86.40 Lac
SUMMARY (Rs. In Lac)

Raw Material 65.40

Consumables 1.73
Utilities 1.20
Salary & Wages 8.28
Reapir And Maintenance 0.38
Administrative Expenses 0.84
Depreiciation 2.25
Interest on Bank Term Loan 1.57
Interest on CC Limit 1.05

Total Cost of Production 82.69

Sales Realisation 86.40
Net Profit 3.71
 Estimate of Cost of Production & Profitability Statement :-

(Rs. In Lacs)
Year 2020 2021 2022 2023 2024 2025 2026

(A) Installed Capacity ( M.T.) Details given separately

(B) Production Envisaged (M.T.) Details given separately

(C ) Capacity Utilisation (%) 70 75 80 80 80 80 80
(D) Manufacturing Expenses
Raw Material 32.70 73.58 82.40 86.52 90.85 95.39 100.16
Consumables 0.86 2.04 2.39 2.63 2.89 3.18 3.50
Utilities 0.60 1.35 1.51 1.59 1.67 1.75 1.84
Salary & Wages 4.14 9.52 10.95 12.05 13.25 14.44 15.60
Reapir & Maintenance 0.19 0.39 0.41 0.43 0.46 0.48 0.50
Administrative Expenses 0.84 1.85 2.03 2.24 2.46 2.71 2.98
Interest on Bank Term Loan 0.78 1.45 1.20 0.96 0.72 0.48 0.24
Interest on CC Limit 0.52 1.05 1.05 1.05 1.05 1.05 1.05
Depreiciation 1.13 2.08 1.77 1.50 1.28 1.09 0.92

Cost of Production 41.76 93.30 103.72 108.97 114.62 120.56 126.78

(B) Sales 43.20 97.20 108.86 114.31 120.02 126.02 132.32

Operating Profit 1.44 3.90 5.14 5.34 5.40 5.46 5.54
Taxation 0.00 0.07 0.15 0.19 0.21 0.22 0.23
Net profit after Tax 1.44 3.83 4.99 5.15 5.20 5.24 5.31
Gross Cash Accruals 2.56 5.91 6.76 6.65 6.48 6.33 6.23

DSCR = Cash Accrual + Int. on Term Loan 40.92 + 6.63

Term Loan + Int. On Term Loan 14.25 + 6.63

Avg. DSCR = 2.33

WORKING CAPITAL STATEMENT :-

S. NO. PARTICULARS PERIOD AMOUNT

1 Raw Material 30 Days 654000.00

2 Sundry Debtors 15 Days 432000.00

3 Cash for Exp. Est. 97120.00

Less: Sundry Creditors 7 Days 183120.00

Total 1000000.00
Cash Flow Statement :- (Rs. In Lacs)

SOURCES OF FUND Const. 2020 2021 2022 2023 2024 2025 2026

Increase in Capital 1.25 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Unsecured Loan 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Increase in Bank Borrowings 0.00 9.50 0.00 0.00 0.00 0.00 0.00 0.00

Increase in Term Loan 14.25 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Net Profit after Tax 0.00 1.44 3.83 4.99 5.15 5.20 5.24 5.31

Increase in Current Liabilities 0.00 1.83 -0.10 0.21 0.09 0.10 0.11 0.11

Depreciation 0.00 1.13 2.08 1.77 1.50 1.28 1.09 0.92

15.50 13.89 5.82 6.97 6.74 6.58 6.44 6.34

APPLICATION OF FUND

Increase in Capital Exp. 15.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Increase in Investment 0.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

Repayment of Term Loan 0.00 1.11 2.19 2.19 2.19 2.19 2.19 2.19

Increase in Current Assets 0.00 10.86 1.36 1.47 0.68 0.72 0.75 0.79

Drawings 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

15.00 12.97 4.55 4.66 3.87 3.91 3.94 3.98

Opening Balance 0.00 0.50 1.42 2.69 5.00 7.87 10.53 13.03

Surplus during the Year 0.50 0.92 1.27 2.31 2.86 2.67 2.49 2.36

Closing Balance 0.50 1.42 2.69 5.00 7.87 10.53 13.03 15.39
Projected Balance Sheet :- (Rs. In Lacs)

Particulars Year 2020 2021 2022 2023 2024 2025 2026

Liabilities
Capital 1.25 1.25 1.25 1.25 1.25 1.25 1.25

Reserve & Surplus 1.44 5.27 10.26 15.41 20.60 25.85 31.15

Term Loan 13.14 10.95 8.76 6.57 4.38 2.19 0.00

Bank Borrowings for Working Capital 9.50 9.50 9.50 9.50 9.50 9.50 9.50

Current Liabilities 1.83 1.74 1.94 2.03 2.13 2.24 2.35

TOTAL-------------- 27.16 28.71 31.71 34.75 37.86 41.02 44.25

Assets

Gross Block 15.00 13.88 11.79 10.02 8.52 7.24 6.16

Depreciation 1.13 2.08 1.77 1.50 1.28 1.09 0.92

Net Block 13.88 11.79 10.02 8.52 7.24 6.16 5.23

Investment 1.00 2.00 3.00 4.00 5.00 6.00 7.00

Sundry Debtors 4.32 4.86 5.44 5.72 6.00 6.30 6.62

Stock 6.54 7.36 8.24 8.65 9.09 9.54 10.02

Cash & Bank Balance 1.42 2.69 5.00 7.87 10.53 13.03 15.39
TOTAL-------------- 27.16 28.71 31.71 34.75 37.86 41.02 44.25

Note : Excss cash / bank balance will be utilised for early repayment of T.L.
Calculation of Interest on Term Loan :-
(Rs. In Lacs)
Particulars 2020 2021 2022 2023 2024 2025 2026
Opening Balance 14.25 13.14 10.95 8.76 6.57 4.38 2.19

Principal Component 1.11 2.19 2.19 2.19 2.19 2.19 2.19

Closing Balance 13.14 10.95 8.76 6.57 4.38 2.19 0.00

Interest for whole Year 0.78 1.45 1.20 0.96 0.72 0.48 0.24
 SCHEDULE OF DEPRICIATION :-

Machinery Total
DEPRECIATION Year
RATE OF DEP. 15%

COST IN LACS 15.00 15.00

Year 1st (6 Month)-2020 1.13 1.13

W.D.V. 13.88

2 nd -2021 2.08 2.08

W.D.V. 11.79

3rd -2022 1.77 1.77

W.D.V. 10.02

4th -2023 1.50 1.50

W.D.V. 8.52

5th -2024 1.28 1.28

W.D.V. 7.24

6th -2025 1.09 1.09

W.D.V. 6.16

7th- 2026 0.92 0.92

W.D.V. 5.23
Calculation of Closing Stock
(Rs. In Lacs)
Particulars Year 2020 2021 2022 2023 2024 2025 2026
Opening Stock 0.00 6.54 7.36 8.24 8.65 9.09 9.54
Add: Purchase 39.24 74.39 83.29 86.94 91.28 95.85 100.64
Less: Stock Consumed 32.70 73.58 82.40 86.52 90.85 95.39 100.16
Closing stock 6.54 7.36 8.24 8.65 9.09 9.54 10.02