PROJECT REPORT FOR

ACHOOS FASHIONS

Prop. Mrs. SREEREKHA C N

Mob No : 9544467595

Business Office:
AZHAKANTHANAM
Palackathakidi p o
Kunnamthanam
 ACHOOS FASHIONS

I N D E X

SL. CONTENTS PAGES

CHAPTER :
1 PROJECT AT GLANCE 1
2 COST OF THE PROJECT AND MEANS OF FINANCE 2
3 PROJECTIONS AND PROFITABILITY STATEMENT 3
4 CASH - FLOW STATEMENT 4
5 BALANCE SHEET 5

ANNEXURES
1 DEPRECIATION SCHEDULE 6
2 BREAK EVEN ANALYSIS 7
3 INTEREST SCHEDULE 8
4 DEBT COVERAGE RATIO 9
5 ANALYSIS ON RETURN ON INVESTMENT 10
6 ASSUMPTION AND WORKING NOTES 11
ACHOOS FASHIONS
CHAPTER NO. 1
PROJECT AT GLANCE :
1 Name : ACHOOS FASHIONS
2 Address : Reg.Office:
AZHAKANTHANAM
Palackathakidi p o
Kunnamthanam

3 Nature of Business : Retail

4 Constitution : Proprietorship
Proprietor : Mrs. SREEREKHA C N

5 Cost of the project : (Rs. In Lakhs)

Particulars Total
Working Capital / Tradable Stocks 12.86
Furniture & Fittings 1.00
Office Equipemnts 0.75
Deposits 0.15
Interest during the impl. Period 0.24
Total 15.00

Means of Finance :
Particulars Total
Proprietor Contribution 10.00
Bank Overdraft 5.00

Total 15.00

6 Debt Equity Ratio : 0.50 :1

7 Debt Coverage Ratio
8 Gross Profit Ratio
9 Net Profit Ratio
10 Employment Potential
11 Return on Investment
: 4.64
: 37.49 First Year Operation.
: 36.29 First Year Operation.
: 2
: 67.53 %

Page 3 of 11
ACHOOS FASHIONS

STATEMENT NO. 1

COST OF THE PROJECT AND MEANS OF FINANCE:

The project cost has been estimated at Rs. 15Lakhs

Brief details of the project cost is given below

Cost of the project : (Rs. In Lakhs)

Particulars Total
Working Capital / Tradable Stocks 12.86
Furniture & Fittings 1.00
Office Equipemnts 0.75
Deposits 0.15
Interest during the impl. Period 0.24
Total 15.00

Means of Finance :
Particulars Total
Promoters Contribution 10.00
Bank Overdraft 5.00
Total 15.00
ACHOOS FASHIONS
STATEMENT NO.2
PROJECTIONS AND PROFITABILITY STATEMENT In Lakhs
Operating years
PARTICULARS
0 1 2 3 4
A.INCOME:
Sales 18.00 21.60 25.92 31.10 37.32

18.00 21.60 25.92 31.10 37.32

B. EXPENSES:
Material Purchase Cost and Related cost 8.00 9.60 11.52 13.82 16.59
Salary 3.00 3.60 4.32 5.18 6.22
Power Charges 0.12 0.14 0.17 0.21 0.25
Depreciation 0.13 0.16 0.19 0.23 0.27
Cost of Operations 11.25 13.50 16.20 19.44 23.33

C. Gross Profit [ A - B ] 6.75 8.10 9.72 11.66 13.99

D. Interest: on term loan 0.24 0.36 0.20 0.07 -

0.24 0.36 0.20 0.07 -

E. Selling & Admin. Exp. 0.10 0.11 0.11 0.12 0.12

F. Profit before Tax[ C - (D+E) ] 6.41 7.63 9.41 11.47 13.87

G. Income Tax 1.92 2.29 2.82 3.44 4.16

H. Profit after Tax ( F-G ) 4.49 5.34 6.58 8.03 9.71

I. Depreciation added back 0.13 0.16 0.19 0.23 0.27

J. Cash Accruals ( H + I ) 4.62 5.50 6.77 8.26 9.98

L. Repayment of Term Loan 0.80 1.60 1.40 1.20 -

M. Net Cash A'ble (J - K)) 3.82 3.90 5.37 7.06 9.98

ACHOOS FASHIONS
STATEMENT No.3

CASH - FLOW STATEMENT :

(A HDPE/PP Fabrics Project)
Operating Years
PARTICULARS
0 1 2 3 4
A. Source of Funds :
Profit after Tax 4.49 5.34 6.58 8.03 9.71
Depreciation 0.13 0.16 0.19 0.23 0.27
Term Loan from Bank 5.00
Promoters Contribution 10.00 - - - -

TOTAL OF ' A ' 19.62 5.50 6.77 8.26 9.98

B. Application of Funds :
Furniture & Fittings 1.00 - - - -
Gen & Office Equipts, 0.75
Deposits 0.15
Repayment of loan 0.80 1.60 1.40 1.20 -

TOTAL OF ' B ' 2.70 1.60 1.40 1.20 -

C. Opening Balance - 16.92 20.82 26.19 33.25

D. Net surplus ( A - B ) 16.92 3.90 5.37 7.06 9.98

E. Closing Balance 16.92 20.82 26.19 33.25 43.23

ACHOOS FASHIONS
STATEMENT No.4

BALANCE SHEET

Operating Years
PARTICULARS
0 1 2 3 4

A. LIABILITIES :
Capital Account 10.00 10.00 10.00 10.00 10.00
Reserves & Surplus 4.49 9.83 16.41 24.44 34.15
Secured Loan 4.20 2.60 1.20 - -

TOTAL 18.69 22.43 27.61 34.44 44.15

B. ASSETS :
Fixed Assets 1.62 1.38 1.17 0.99 0.84
Current Assets
Cash & Bank 16.92 20.82 26.19 33.25 43.23
Deposits 0.15 0.15 2.00 2.00 2.00

TOTAL 18.69 22.34 29.36 36.24 46.08

ACHOOS FASHIONS
Bangalore

(A HDPE/PP Fabrics Project)

ANNEXURE NO.1

DEPRECIATION SCHEDULE: -
WDV at the year end
PARTICULARS
0 1 2 3 4
1. Furniture & Fittings 1.00 0.93 0.79 0.67 0.57
Depreciation @ 15% 0.08 0.14 0.12 0.10 0.09
WDV 0.93 0.79 0.67 0.57 0.48

4. Genr & Office Equipts 0.75 0.69 0.59 0.50 0.43

Depreciation @ 15% 0.06 0.10 0.09 0.08 0.06
WDV 0.69 0.59 0.50 0.43 0.36

Total Assets
[1+2+3+4] 1.62 1.38 1.17 0.99 0.84

Total Depreciation
[1+2+3+4] 0.13 0.24 0.21 0.18 0.15
ACHOOS FASHIONS
ANNEXURE NO.2

BREAK-EVEN ANALYSIS
Years
(A HDPE/PP Fabrics Project)
0 1 2 3 4
A. Receipts 18.00 21.60 25.92 31.10 37.32

B. Variable cost: 11.25 13.50 16.20 19.44 23.33

D. Fixed costs:
Depreciation 0.13 0.24 0.21 0.18 0.15
Interest on Term Loan 0.24 0.36 0.20 0.07 0.00
Administration Expenses 0.10 0.11 0.11 0.12 0.12
0.47 0.71 0.52 0.37 0.27

E. Contribution [ B - C ] 6.75 8.10 9.72 11.66 13.99

F. P.V.Ratio [ E/B x 100 ] 37.49 37.49 37.49 37.49 37.49

G. Break - even [ Value ]

[ D / F x 100 ] 1.26 1.89 1.38 0.98 0.72

H. Cash Break Even 0.91 1.24 0.83 0.51 0.32

[ Without Depreciation]
ACHOOS FASHIONS
ANNEXURE NO.3

INTEREST SCHEDULE : (Rs. in Lakhs)

QUARTERS OPENING LOAN CLOSING INTEREST
BALANCE REPAYMENT BALANCE PER QTR.
0 1 5.00 - 5.00 0.00
2 5.00 - 5.00 0.00
3 5.00 0.40 4.60 0.13
4 4.60 0.40 4.20 0.12
I 1 4.20 0.40 3.80 0.11
2 3.80 0.40 3.40 0.10
3 3.40 0.40 3.00 0.09
4 3.00 0.40 2.60 0.08
II 1 2.60 0.40 2.20 0.07
2 2.20 0.40 1.80 0.06
3 1.80 0.30 1.50 0.05
4 1.50 0.30 1.20 0.04
III 1 1.20 0.30 0.90 0.03
2 0.90 0.30 0.60 0.02
3 0.60 0.30 0.30 0.02
4 0.30 0.30 - 0.01

NOTE : Interest on Term Loan is calculated at 13% per annum liquidated in

4 year
(Rs. in Lakhs)
INTEREST
P.A.

0.24

0.36

0.20

0.07
ACHOOS FASHIONS
ANNEXURE NO.4

DEBT SERVICE COVERAGE RATIO :

Operating Years
0 1 2 3 4
A. SOURCES :
Profit after tax 4.49 5.34 6.58 8.03 9.71
Depreciation 0.13 0.16 0.19 0.23 0.27
Interest on term loan 0.24 0.36 0.20 0.07 -
TOTAL OF ' A ' 4.86 5.86 6.98 8.33 9.98

B DEBT :
Term loan installment 0.80 1.60 1.40 1.20 -
Interest on Term Loan 0.24 0.36 0.20 0.07 -

TOTAL OF ' B ' 1.04 1.96 1.60 1.28 -

C Debt Service Coverage Ratio

DSCR [A/B] 4.67 2.99 4.35 6.53 -

D Average DSCR 4.64

ACHOOS FASHIONS
ANNEXURE NO.5

ANALYSIS OF RETURN ON INVESTMENT :

1. Return on Investment = Average Return x 100

Capital Employed

2. Return = Profit before tax + Depreciation + Interest on term loan

3. Capital Employed = Cost of the Project

RETURN ON INVESTMENT :

OPERTING YEARS
PARTICULARS
0 1 2 3 4
Profit before tax 6.41 7.63 9.41 11.47 13.87

Depreciation 0.13 0.16 0.19 0.23 0.27

Interest on Term Loan 0.24 0.36 0.20 0.07 -

6.78 8.15 9.80 11.77 14.14

# Average Return 10.13

# Capital Employed 15.00

# Return on Investment 67.53 %

ACHOOS FASHIONS
ANNEXURE NO.6
Assumption and workings notes to the Financial Statements of the Project Report:
1 Revenue In Lakhs
Sale of HDPE/pp Fabrics
Total Quantity Estimated to be sold for a month : 50 tons
Sale value of each Ton : 1.3
Monthly Revenue : 65.00
Yearly Revenue 780.00
First year Revenue for 6 months 390.00
Every year the Revenue is estimated to increase
by 20%.

2 Material Purchase Costs

The material is estimated to cost at 90% of sales price.
The cost for 1 year is 390*90% = 351 Lakhs

3 Salary
S.No. Category of Employee No.of Salary per Salary per
Employees Month Annuam
1 Managers 2 6,750.00 162,000.00
2 Helpers 7 4,500.00 378,000.00
3 Accountant 1 5,000.00 60,000.00
Total 10 600,000.00
Note: Increament in salary is taken at 5% per annum

4 Power
Power Charges is estimated at Rs.1000/- per month and provision made for increase
in rates @ 5% per annuam

5 Depreciation:
Depreciation is calculated at the rates prescribed under
the Income Tax Act. Separate Annexure made

6 Interest:
Interest on term loan is calculated at 13% per annum
Term loan will be repaid in 4 year

7 Selling and Administration Expenses:

Selling expenses includes sales commission, Post & Telephone expenses and other
Office maintenance expenses.
It is estimated at Rs.15,000/- per month and provision made for increase in cost
at 5% per annuam

Page 11 of 11