PROJECT REPORT

M/S SANWARIYA STONE TRADING CO.

(Prop. Mr. Vikram Satyanarayan Gour )
Chittorgarh -312001
PROJECT REPORT
M/S SANWARIYA STONE TRADING CO.
(Prop. Mr. Vikram Satyanarayan Gour )
Chittorgarh -312001

COST OF PROJECT Amount (Rs.)

Land & Building Own

Plant & Machinery 1451400.00
Furniture , Electric Installations etc. 35500.00
Working Capital Margin 1000000.00

Total 2486900.00

SOURCES OF FINANCE

Own Contribution 124345.00

Term Loan from Financial Banks 1412555.00
Working Capital Limits 950000.00

Total 2486900.00
 ASSETS DETAIL :-

AMOUNT (RS.)

1 LAND & Building Own

(At Purohito Ka Sanvta ,Dist.-Chittorgarh ) 0.00

2 PLANT & MACHINERY

Sr. No. Particulars Qty Amount Supplier

1 Granite Slab Edge Cutting Machine 1 Nos. 413000.00 Any reputed

Supplier
2 Granite Slab Polishing Machine -Auto Head 1 Nos. 1038400.00

Total 1451400.00
 Assumption

A RECURRING EXPENSES :
BASIS
Working Day Per Annum 300
No. of Shift Per Day One Shift
No. of effective working 8 Hrs
Installed Capacity 360000 Sqft Per Year
for Stone Polish

Capacity Utilisation (%)

1 st Year 60%
2 nd Year 70%
3 rd Year 75%
Capacity Envisaged I Year 270000 Sqft in 1st Year

COST OF PRODUCTION :-

1 Raw Material
150000 sqft Granite Slab @ 40 sqft 6000000.00

Total 6000000.00
2 Consumbales Say Rs. 60.00 Lac

(a) Stone Polishing Abrasive 384000.00

Total Sets 384 @ Rs. 1000/- Per Set

(b) Epoxy Resin 1200 Ltr. @ Rs. 300 Ltr. 360000.00

Total 744000.00
Say Rs. 7.44 Lac

3 Utlilites

Power 127008.00
(35*0.746*16*25)
(Electricity Motive Power 35 HP)

Water (Own Source)

Total 127008.00
Say Rs. 1.27 Lac
4 Salary & Wages

Category Nos. Monthly / Salary Total

Salary & Wages

Main Machine Operator 1 15000 180000.00
Production Supervisor 1 17500 210000.00
Semi Skilled Workers 10 8000 960000.00
Accountant cum Store Assistant 1 10000 120000.00
Office Boy 1 5000 60000.00

Total 1530000.00

Total Salary & Wages Per Month 127500.00

Total Salary & Wages Per Annum (12 Months) 1530000.00

Say Rs. 15.30 Lac

5 Repair & Maintenance
2.5% of Cost of Fixed Assets 14.51 Lac 36285.00
Total 36285.00
Say Rs. 0.36 Lac
6 Administrative Expenses
Postage, Telephone & Telegram 4000.00
Legal & Professional Charges 8000.00
Printing & Stationery 5000.00
Insurance 8000.00
Travelling exp. 48000.00
Office Exp. 24000.00
Misc. Expenses 10000.00

Total 107000.00
Say Rs. 1.07 Lac

7 Depreciation
Plant & Machinery of Rs. 14.87 Lac @ 15% 223035.00

Total 223035.00
Say Rs. 2.23 Lac
8 Interest

Term Loan of Rs. 14.13 Lac @ 10.50 % p.a 148318.00

Bank CC Limit of Rs. 9.50 Lac @ 10.50% p.a. 99750.00

Total 248068.00
Say Rs. 2.48 Lac

9 Sales Realisation

142500 Sqft. @ Rs. 44/- Per Sqft 6270000.00

216000 Sqft. @ Rs. 15/- Per Sqft 3240000.00
Total 9510000.00
Say Rs. 95.10 Lac
SUMMARY (Rs. In Lac)

Raw Material 60.00

Consumables 7.44
Utilities 1.27
Salary & Wages 15.30
Reapir And Maintenance 0.36
Administrative Expenses 1.07
Depreiciation 2.23
Interest on Bank Term Loan 1.48
Interest on CC Limit 1.00

Total Cost of Production 90.15

Sales Realisation 95.10
Net Profit 4.95
WORKING CAPITAL STATEMENT :-

S. NO. PARTICULARS PERIOD AMOUNT

1 Raw Material 30 Days 600000.00

2 Sundry Debtors 21 Days 475500.00

3 Cash for Exp. Est. 64500.00

Less: Sundry Creditors 7 Days 140000.00

Total 1000000.00
 Estimate of Cost of Production & Profitability Statement :-

(Rs. In Lacs)
Particulars I II III IV V

(A) Installed Capacity ( sqft) Details Given Separately

(B) Production Envisaged (sqft) Details Given Separately

(C ) Capacity Utilisation (%) 60 70 75 80 80
(D) Manufacturing Expenses

Raw Material 60.00 73.50 82.69 95.50 105.29

Consumables 7.44 9.55 11.25 12.38 13.86
Utilities 1.27 1.56 1.75 1.84 1.93
Salary & Wages 15.30 17.60 20.23 22.26 24.48
Reapir & Maintenance 0.36 0.38 0.40 0.42 0.44
Administrative Expenses 1.07 1.18 1.29 1.42 1.57
Interest on Bank Term Loan 1.48 1.19 0.89 0.59 0.30
Interest on CC Limit 1.00 1.00 1.00 1.00 1.00
Depreiciation 2.23 1.90 1.61 1.37 1.16

Cost of Production 90.15 107.84 121.12 136.78 150.03

(B) Sales 95.10 114.28 128.56 145.36 159.90

Operating Profit 4.95 6.44 7.45 8.58 9.86
Taxation 0.00 0.00 0.50 0.70 0.90
Net profit after Tax 4.95 6.44 6.95 7.88 8.96
Gross Cash Accruals 7.18 8.34 8.56 9.25 10.13

DSCR = Cash Accrual + Int. on Term Loan 43.46 + 4.45

Term Loan + Int. On Term Loan 14.13 + 4.45

Avg. DSCR = 2.58

Projected Balance Sheet :- (Rs. In Lacs)

Particulars I II III IV V

Liabilities
Capital 1.24 1.24 1.24 1.24 1.24

Reserve & Surplus 4.95 11.39 18.33 26.21 35.18

Term Loan 11.30 8.47 5.64 2.81 0.00

Bank Borrowings for Working Capital 9.50 9.50 9.50 9.50 9.50

Current Liabilities 1.40 1.72 1.93 2.23 2.46

TOTAL-------------- 28.39 32.32 36.65 42.00 48.38

Assets

Gross Block 14.87 12.64 10.74 9.13 7.76

Depreciation 2.23 1.90 1.61 1.37 1.16

Net Block 12.64 10.74 9.13 7.76 6.60

Investment 2.00 3.00 4.00 6.00 8.00

Sundry Debtors 4.76 5.71 6.43 7.27 7.99

Stock 6.00 7.35 8.27 9.55 10.53

Cash & Bank Balance 3.00 5.51 8.82 11.42 15.26

TOTAL-------------- 28.39 32.32 36.65 42.00 48.38

Note : Excss cash / bank balance will be utilised for early repayment of T.L.
Cash Flow Statement :- (Rs. In Lacs)

SOURCES OF FUND Const. I II III IV V

Increase in Capital 1.24 0.00 0.00 0.00 0.00 0.00

Unsecured Loan 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

Increase in Term Loan 14.13 0.00 0.00 0.00 0.00 0.00

Net Profit after Tax 0.00 4.95 6.44 6.95 7.88 8.96

Increase in Current Liabilities 0.00 1.40 0.32 0.21 0.30 0.23

Depreciation 0.00 2.23 1.90 1.61 1.37 1.16

15.37 18.08 8.65 8.77 9.55 10.36

APPLICATION OF FUND

Increase in Capital Exp. 14.87 0.00 0.00 0.00 0.00 0.00

Increase in Investment 0.00 2.00 1.00 1.00 2.00 2.00

Repayment of Term Loan 0.00 2.83 2.83 2.83 2.83 2.81

Increase in Current Assets 0.00 10.75 2.31 1.63 2.12 1.71

Drawings 0.00 0.00 0.00 0.00 0.00 0.00

14.87 15.58 6.14 5.46 6.95 6.52

Opening Balance 0.00 0.50 3.00 5.51 8.82 11.42

Surplus during the Year 0.50 2.50 2.51 3.31 2.60 3.84

Closing Balance 0.50 3.00 5.51 8.82 11.42 15.26

Calculation of Interest on Term Loan :-
(Rs. In Lacs)
Particulars I II III IV V

Opening Balance 14.13 11.30 8.47 5.64 2.81

Principal Component 2.83 2.83 2.83 2.83 2.81

Closing Balance 11.30 8.47 5.64 2.81 0.00

Interest for whole Year 1.48 1.19 0.89 0.59 0.30

SCHEDULE OF DEPRICIATION :-

Machinery Total
DEPRECIATION
RATE OF DEP. 15%

COST IN LACS 14.87 14.87

1st 2.23 2.23

W.D.V. 12.64

2 nd 1.90 1.90
W.D.V. 10.74

3rd 1.61 1.61

W.D.V. 9.13

4th 1.37 1.37

W.D.V. 7.76

5th 1.16 1.16

W.D.V. 6.60