M/s JAI GURU BABA HARDWARE STORE

PROP. RAJNEESH SHARMA

PROJECTED PROPOSAL

Background / Introduction: -

The present proposal is to purchase of JCB 3DX Excavator cum Loader with 0.26 cum Excavator Bucket
& 1.1 cum Loader Bucket Powered by JCB ECOMAX Engine, 4 cylinder, water cooler diesel engine
developing 76 HP @ 2200 rpm and with BMR 430 model Rock Breaker Vajra series with total weight of
450 kg and tool diameter of 75mm for COMMERCIAL PURPOSES by Sh. Rajneesh Sharma solely
proprietor of M/s Jai Guru Baba Hardware Store, Kheri Road, Rajgarh, Distt Sirmaur, Himachal
Pradesh 173101.

Project Cost:
JCB 3DX Model (Quotation Attached) Rs. 24,03,800.00
BMR 430 Model Rock Breaker (Quotation Attached) Rs. 4,01,200.00
Total Amount Rs. 28,05,000.00

Means of Finance:

Promoter’s Contribution Rs. 8,55,000.00

Bank Loan Rs. 19,50,000.00
Total Rs. 28,05,000.00

Note:- Subsidy of Rs. 7,01,250/- i.e. 25% of Total Cost of the Project Rs. 28,05,000/- of JCB initially
bank will finance including subsidy.

Annual JCB Service Collection:

Per Hour Rate JCB Machine ₹ 600.00

Per Hour Rate JCB Machine with Rock Breaker ₹ 1,200.00
Average no. of Hours Works Per Day 15 Hours
Average no. of Days works in a Year 325
No. of Days JCB Machine works without Rock Breaker 200
No. of Days JCB Machine works with Rock Breaker 125
Total Annual JCB Service Collection with Rock Breaker ₹ 18,00,000.00
Total Annual JCB Service Collection without Rock Breaker ₹ 22,50,000.00
Total JCB Service Collections ₹ 40,50,000.00

PROJECTED JCB SERVICE COLLECTION FOR 5 YEARS:

PROJECT REPORT ON M/s JAI GURU BABA HARDWARE STORE (PROP. RAJNEESH SHARMA) pg.
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 M/s JAI GURU BABA HARDWARE STORE
PROP. RAJNEESH SHARMA
PROJECTED PROPOSAL
Years
SN PARTICULARS
I II III IV V
1 JCB Service Collection ₹ 40,50,000 ₹ 48,60,000 ₹ 58,32,000 ₹ 69,98,400 ₹ 83,98,080

The total requirement of staff is as under:

Particulars No. Salary Total (Rs.)

Driver 1 10000.00 10000.00
Helper 1 6500.00 6500.00
Total 16500.00
Annual Wages 198000.00

Fuel Consumption Details:

Every Day Works 15 Hours

Per Hour Fuel Consumption 3 Ltr
Per Ltr. Diesel Cost Rs. 75
Per Hour Fuel Consumption in Rs. 225
No of days works in a year 325
Per day Fuel Consumption 3,375
Annual Fuel Consumption 10,96,875

Schedule of Depreciation:

Opening Balance Purchases Depreciation Closing WDV

@ 15%
I YEAR - 28,05,000.00 4,20,750.00 23,84,750.00

II YEAR 23,84,750.00 - 3,57,638.00 20,26,612.00

III YEAR 20,26,612.00 - 3,03,992.00 17,22,620.00

IV YEAR 17,22,620.00 - 2,58,393.00 14,64,227.00

V YEAR 14,64,227.00 - 2,19,634.00 12,44,593.00

PROJECT REPORT ON M/s JAI GURU BABA HARDWARE STORE (PROP. RAJNEESH SHARMA) pg.
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 M/s JAI GURU BABA HARDWARE STORE
PROP. RAJNEESH SHARMA
PROJECTED PROPOSAL
PROJECTED EXPENSES FOR 5 YEARS:

S Years
PARTICULARS
N I II III IV V

1,20,00 1,32,00 1,45,20 1,59,72 1,75,69

1 Salary to Driver
0 0 0 0 2
78,00 85,80 94,38 1,03,81 1,14,20
2 Salary to Helper
0 0 0 8 0
2,02,50 2,43,00 2,91,60 3,49,92 4,19,90
3 Consumables @ 5%
0 0 0 0 4
Repair and 30,00 36,00 43,20 51,84 62,20
4
Replacements 0 0 0 0 8
10,96,87 12,06,56 13,27,21 14,59,94 16,05,93
5 Fuel Expenses
5 3 9 1 5
4,20,75 3,57,63 3,03,99 2,58,39 2,19,63
6 Depreciation
0 8 2 3 4
Net Bank Interest 65,65 53,81 40,58 25,86 9,51
7
Payable 6 8 0 8 9

20,13,78 21,14,81 22,46,17 24,09,49 26,07,09

TOTAL :
1 8 1 9 2

FOR M/s JAI GURU BABA HARDWARE STORE

PROPRIETOR

PROJECTED PROFIT AND LOSS ACCOUNT FOR 5 YEARS:

PROJECT REPORT ON M/s JAI GURU BABA HARDWARE STORE (PROP. RAJNEESH SHARMA) pg.
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 M/s JAI GURU BABA HARDWARE STORE
PROP. RAJNEESH SHARMA
PROJECTED PROPOSAL
YEARS
PARTICULARS
I II III IV V
A) Incomes:
Income From :-
Gross Receipts from Customers 40,50,000 48,60,000 58,32,000 69,98,400 83,98,080

TOTAL: 40,50,000 48,60,000 58,32,000 69,98,400 83,98,080

B) Direct Expenses
10,96,87 12,06,56 13,27,21 14,59,94 16,05,93
Fuel Consumed 5 2 9 1 5

Other Consumables 2,02,500 2,43,000 2,91,600 3,49,920 4,19,904

C) Gross Profit (A-B) 27,50,625 34,10,438 42,13,181 51,88,539 63,72,241

TOTAL: 40,50,000 48,60,000 58,32,000 69,98,400 83,98,080

D) Administration Expenses 2,28,000 2,53,800 2,82,780 3,15,378 3,52,100

Profit Before Depreciation, Interest &
E) Tax 25,22,625 31,56,638 39,30,401 48,73,161 60,20,141

F) Depreciation 4,20,750 3,57,638 3,03,992 2,58,393 2,19,634

G) Profit Before Interest & Tax 21,01,875 27,99,000 36,26,409 46,14,768 58,00,507
H) Interest

Interest on Term Loan 65,656 53,818 40,580 25,868 9,519

I) Profit Before Tax 20,36,219 27,45,182 35,85,829 45,88,900 57,90,988

J) Income Tax 4,36,012 6,60,958 9,26,386 12,40,231 17,41,914

K) Profit After Tax 16,00,207 20,84,224 26,59,443 33,48,669 40,49,074

L) Depreciation Add Back 4,20,750 3,57,638 3,03,992 2,58,393 2,19,634

M) Cash Profit 20,20,957 24,41,862 29,63,435 36,07,062 42,68,708

PROJECT REPORT ON M/s JAI GURU BABA HARDWARE STORE (PROP. RAJNEESH SHARMA) pg.
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 M/s JAI GURU BABA HARDWARE STORE
PROP. RAJNEESH SHARMA
PROJECTED PROPOSAL
PROJECTED BALANCE SHEET FOR 5 YEARS:

YEARS
PARTICULARS
I II III IV V
LIABILITIES
CAPITAL ACCOUNT

Opening Balance - 13,45,207 20,09,431 31,18,874 38,17,543

6,05,00
Add: Additional Capital Introduced 0 - - - -

Add: Profit during the year 16,00,207 20,84,224 26,59,443 33,48,669 40,49,074

Less: Withdrawal 8,60,000 14,20,000 15,50,000 26,50,000 30,60,000

SUB TOTAL : 13,45,207 20,09,431 31,18,874 38,17,543 48,06,617

SECURED LOANS

Term Loan 17,63,496 15,38,365 5,86,927 3,08,891 -

CURRENT LIABILITIES

Sundry Creditors 2,20,000 2,25,000 3,43,750 4,30,000 5,37,500

Expenses Payable 15,000 16,500 18,200 20,000 22,000

Instalment of TL due 1,86,504 2,25,131 2,50,188 2,78,036 3,08,891

Total Rs. 35,30,207 40,14,427 43,17,939 48,54,470 56,75,008

ASSETS
FIXED ASSETS:-

Opening Balance - 23,84,250 20,26,612 17,22,620 14,64,227

Add : Additions during the Year 28,05,000 - - - -

Gross Block 28,05,000 23,84,250 20,26,612 17,22,620 14,64,227

Less : Depreciation 4,20,750 3,57,638 3,03,992 2,58,393 2,19,634

NET BLOCK 23,84,250 20,26,612 17,22,620 14,64,227 12,44,593

PROJECT REPORT ON M/s JAI GURU BABA HARDWARE STORE (PROP. RAJNEESH SHARMA) pg.
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 M/s JAI GURU BABA HARDWARE STORE
PROP. RAJNEESH SHARMA
PROJECTED PROPOSAL
INVESTMENTS & DEPOSITS:-

Investments 7,01,250 7,01,250 10,01,250 5,00,000 10,00,000

CURRENT ASSETS

Sundry Debtors 3,06,250 6,07,500 7,29,000 8,74,800 10,49,760

Cash & Bank Balances 1,06,576 6,22,011 7,84,538 19,11,912 22,75,494

Advances & Other Receivables 31,881 57,054 80,531 1,03,531 1,05,161

Total Rs. 35,30,207 40,14,427 43,17,939 48,54,470 56,75,008

KEY FINANCIAL RATIOS:

YEARS
PARTICULARS
I II III IV V

GROSS PROFIT RATIO IN % 67.92% 70.17% 72.24% 74.14% 75.88%

(Gross Profit/Gross Sales)

NET PROFIT RATIO IN % 39.51% 42.89% 45.60% 47.85% 48.21%

(Net Profit/Gross Sales)

DEBT- EQUITY RATIO 1.31 0.77 0.19 0.08 -

(Loan Liability/Equity)

PROJECT REPORT ON M/s JAI GURU BABA HARDWARE STORE (PROP. RAJNEESH SHARMA) pg.
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 M/s JAI GURU BABA HARDWARE STORE
PROP. RAJNEESH SHARMA
PROJECTED PROPOSAL
BANK LOAN PAYMENT DETAILS
Term Loan Amount ₹ 19,50,000.00
Tenor of Term Loan (in Months) 60
Moratorium Period (in Months) 1
Repayment Period (in Months) 59
EMI Amount ₹ 27,250.00
ROI 10.60%
Subsidy Amount ₹ 7,01,250

EMI DETAILS TO BE PAID IN 5 YEARS:

Interest will be
Paymen paid on Opening
Opening EMI Principal Interest Closing
t Balance - Subsidy
Balance Amount Part Part Balance
Number Amount for first
3 Years
19,50,000.0 11,031. 11,031.
1
0 00 00 19,50,000.00 ₹ 12,48,750.00
19,50,000.0 27,250. 16,219. 11,031.
2
0 00 00 00 19,33,781.00 ₹ 12,48,750.00
19,33,781.0 27,250. 16,363. 10,887.
3
0 00 00 00 19,17,418.00 ₹ 12,32,531.00
19,17,418.0 27,250. 16,507. 10,743.
4
0 00 00 00 19,00,911.00 ₹ 12,16,168.00
19,00,911.0 27,250. 16,653. 10,597.
5
0 00 00 00 18,84,258.00 ₹ 11,99,661.00
18,84,258.0 27,250. 16,800. 10,450.
6
0 00 00 00 18,67,458.00 ₹ 11,83,008.00
18,67,458.0 27,250. 16,948. 10,302.
7
0 00 00 00 18,50,510.00 ₹ 11,66,208.00
18,50,510.0 27,250. 17,098. 10,152.
8
0 00 00 00 18,33,412.00 ₹ 11,49,260.00
18,33,412.0 27,250. 17,249. 10,001.
9
0 00 00 00 18,16,163.00 ₹ 11,32,162.00
18,16,163.0 27,250. 17,402. 9,848.
10
0 00 00 00 17,98,761.00 ₹ 11,14,913.00
17,98,761.0 27,250. 17,555. 9,695.
11
0 00 00 00 17,81,206.00 ₹ 10,97,511.00
17,81,206.0 27,250. 17,710. 9,540.
12
0 00 00 00 17,63,496.00 ₹ 10,79,956.00
13 17,63,496.0 27,250. 17,867. 9,383. ₹ 10,62,246.00

PROJECT REPORT ON M/s JAI GURU BABA HARDWARE STORE (PROP. RAJNEESH SHARMA) pg.
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 M/s JAI GURU BABA HARDWARE STORE
PROP. RAJNEESH SHARMA
PROJECTED PROPOSAL
0 00 00 00 17,45,629.00
17,45,629.0 27,250. 18,025. 9,225.
14
0 00 00 00 17,27,604.00 ₹ 10,44,379.00
17,27,604.0 27,250. 18,184. 9,066.
15
0 00 00 00 17,09,420.00 ₹ 10,26,354.00
17,09,420.0 27,250. 18,344. 8,906.
16
0 00 00 00 16,91,076.00 ₹ 10,08,170.00
16,91,076.0 27,250. 18,507. 8,743.
17
0 00 00 00 16,72,569.00 ₹ 9,89,826.00
16,72,569.0 27,250. 18,670. 8,580.
18
0 00 00 00 16,53,899.00 ₹ 9,71,319.00
16,53,899.0 27,250. 18,835. 8,415.
19
0 00 00 00 16,35,064.00 ₹ 9,52,649.00
16,35,064.0 27,250. 19,001. 8,249.
20
0 00 00 00 16,16,063.00 ₹ 9,33,814.00
16,16,063.0 27,250. 19,169. 8,081.
21
0 00 00 00 15,96,894.00 ₹ 9,14,813.00
15,96,894.0 27,250. 19,338. 7,912.
22
0 00 00 00 15,77,556.00 ₹ 8,95,644.00
15,77,556.0 27,250. 19,509. 7,741.
23
0 00 00 00 15,58,047.00 ₹ 8,76,306.00
15,58,047.0 27,250. 19,682. 7,568.
24
0 00 00 00 15,38,365.00 ₹ 8,56,797.00
15,38,365.0 27,250. 19,855. 7,395.
25
0 00 00 00 15,18,510.00 ₹ 8,37,115.00
15,18,510.0 27,250. 20,031. 7,219.
26
0 00 00 00 14,98,479.00 ₹ 8,17,260.00
14,98,479.0 27,250. 20,208. 7,042.
27
0 00 00 00 14,78,271.00 ₹ 7,97,229.00
14,78,271.0 27,250. 20,386. 6,864.
28
0 00 00 00 14,57,885.00 ₹ 7,77,021.00
14,57,885.0 27,250. 20,566. 6,684.
29
0 00 00 00 14,37,319.00 ₹ 7,56,635.00
14,37,319.0 27,250. 20,748. 6,502.
30
0 00 00 00 14,16,571.00 ₹ 7,36,069.00
14,16,571.0 27,250. 20,931. 6,319.
31
0 00 00 00 13,95,640.00 ₹ 7,15,321.00
13,95,640.0 27,250. 21,116. 6,134.
32
0 00 00 00 13,74,524.00 ₹ 6,94,390.00
13,74,524.0 27,250. 21,303. 5,947.
33
0 00 00 00 13,53,221.00 ₹ 6,73,274.00
13,53,221.0 27,250. 21,491. 5,759.
34
0 00 00 00 13,31,730.00 ₹ 6,51,971.00

35 13,31,730.0 27,250. 21,681. 5,569. ₹ 6,30,480.00

PROJECT REPORT ON M/s JAI GURU BABA HARDWARE STORE (PROP. RAJNEESH SHARMA) pg.
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 M/s JAI GURU BABA HARDWARE STORE
PROP. RAJNEESH SHARMA
PROJECTED PROPOSAL
0 00 00 00 13,10,049.00
13,10,049.0 27,250. 21,872. 5,378.
36
0 00 00 00 12,88,177.00 ₹ 6,08,799.00
5,86,927.0 27,250. 22,065. 5,185. After 3 Years
37
0 00 00 00 5,64,862.00 Subsidy amount
5,64,862.0 27,250. 22,260. 4,990. will be credited to
38
0 00 00 00 5,42,602.00 loan account and
5,42,602.0 27,250. 22,457. 4,793. EMI is updated
39
0 00 00 00 5,20,145.00
5,20,145.0 27,250. 22,655. 4,595.
40
0 00 00 00 4,97,490.00
4,97,490.0 27,250. 22,856. 4,394.
41
0 00 00 00 4,74,634.00
4,74,634.0 27,250. 23,057. 4,193.
42
0 00 00 00 4,51,577.00
4,51,577.0 27,250. 23,261. 3,989.
43
0 00 00 00 4,28,316.00
4,28,316.0 27,250. 23,467. 3,783.
44
0 00 00 00 4,04,849.00
4,04,849.0 27,250. 23,674. 3,576.
45
0 00 00 00 3,81,175.00
3,81,175.0 27,250. 23,883. 3,367.
46
0 00 00 00 3,57,292.00
3,57,292.0 27,250. 24,094. 3,156.
47
0 00 00 00 3,33,198.00
3,33,198.0 27,250. 24,307. 2,943.
48
0 00 00 00 3,08,891.00
3,08,891.0 27,250. 24,521. 2,729.
49
0 00 00 00 2,84,370.00
2,84,370.0 27,250. 24,738. 2,512.
50
0 00 00 00 2,59,632.00
2,59,632.0 27,250. 24,957. 2,293.
51
0 00 00 00 2,34,675.00
2,34,675.0 27,250. 25,177. 2,073.
52
0 00 00 00 2,09,498.00
2,09,498.0 27,250. 25,399. 1,851.
53
0 00 00 00 1,84,099.00
1,84,099.0 27,250. 25,624. 1,626.
54
0 00 00 00 1,58,475.00
1,58,475.0 27,250. 25,850. 1,400.
55
0 00 00 00 1,32,625.00
1,32,625.0 27,250. 26,078. 1,172.
56
0 00 00 00 1,06,547.00

PROJECT REPORT ON M/s JAI GURU BABA HARDWARE STORE (PROP. RAJNEESH SHARMA) pg.
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 M/s JAI GURU BABA HARDWARE STORE
PROP. RAJNEESH SHARMA
PROJECTED PROPOSAL
1,06,547.0 27,250. 26,309. 941.
57
0 00 00 00 80,238.00
80,238.0 27,250. 26,541. 709.
58
0 00 00 00 53,697.00
53,697.0 27,250. 26,776. 474.
59
0 00 00 00 26,921.00
26,921.0 27,159. 26,921. 238.
60
0 00 00 00 -

Principal Interest Interest Balance at

Instalments Net Interest
Amount Amount Subsidy the End of
Paid Payable
Paid Paid @5% the Year
1st Year 310781 186504 124277 58621 65656 1763496.00
2nd Year 327000 225131 101869 48051 53818 1538365.00
3rd Year 327000 250188 76812 36232 40580 586927.00
4th Year 327000 278036 48964 23096 25868 308891.00
5th Year 326909 308891 18018 8499 9519 0.00

FOR M/s JAI GURU BABA HARDWARE STORE

PROPRIETOR

PROJECT REPORT ON M/s JAI GURU BABA HARDWARE STORE (PROP. RAJNEESH SHARMA) pg.
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