PROJECT AT A GLANCE - TOP SHEET

1 Name of the Entreprenuer SHRI MANISH JEWELLERS

2 Constitution (legal Status) Individual

:

3 Name of the Proprietor MANISH GUPTA

4 Unit Address : 6/2B

COSSIPUR ROAD
COSSIPUR
District : KOLKATA
Pin: 700002 State: WEST BENGAL
E-Mail :
Mobile 0
5 Product and By Product JEWELLERY SHOP

6 Cost of Project : Rs. 5,14,50,000.00

Name of the project / business activity JEWELLERY SHOP
proposed :
7 Means of Finance
Term Loan Rs. 3,85,87,500.00
Own Capital Rs. 1,28,62,500.00

8 Debt Service Coverage :

Ratio

9 Pay Back Period : 5 Years

10 Project Implementation : 3 Months

Period

12 Employment : 9

Major Raw materials : GOLD, SILVER,,

13

14 Estimated Annual Sales : Rs. 2,70,00,000.00

Turnover

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 DETAILED PROJECT REPORT
1 INTRODUCTION :

The Gems and jewellery sector has a huge market in India and abroad alike. This market encompasses various kinds of jewels including
gold, coloured gemstones, costume jewelleries, platinum and diamonds. The sector is expected to register a compound annual growth
rate (CAGR) of 13 per cent during 2011-2013, according to a report “Indian Gems and Jewellery Market Forecast to 2013,” by research
firm RNCOS. The RNCOS report came out in the year 2010, and was indirectly supported by the findings of a leading industry body and
published in the same year. The growth rate of the gems and jewellery industry in India stands at 15 per cent, while the domestic
jewellery market was worth US$ 16-18 billion. As far as exports are concerned, this sector constitutes more than 12 per cent of the
total exported products. The journal estimated that by year 2015 the gems and jewellery sector will help India earn about US$ 25-35
billion in form of export revenue. A steady sale of jewelries, especially of gold, has helped the gems and jewellery industry in India
flourish at this rapid rate. Moreover, people are also investing their money in gold as a future recourse to counter tough times. In
addition, India has evolved as a great place for diamond processing, according to the industry body. The huge growth of the Indian
gems and jewellery industry has seen the advent many new branded jewellery shops in various metros of this country. Brands such as,
Damas Jewellery, Reliance Retail, Swarovski, and Joy Alukkas are either opening or have already opened their new branches. The
availability of cheap labour and presence of well skilled people in various states of India is helping in the growth of diamond polishing
and gold jewellery markets. According to experts in the jewelry industry the surge in demand for expensive jewellery in India is a result
of the strengthening Indian economy. India will soon overtake the US in the not so distant future, according to a statement given by
Rapaport Group, the well known keeper of global diamond related data.
2 ABOUT THE PROMOTER :

Mrs. Manish Gupta is the promoter of the proposed activity. The promoter, after being satisfied about the scope of the proposed
activity, decided to pool his resources to promote the proposed unit. As far as the management of the unit is concerned, it will be
managed by the promoter himself who has vast experience in this field of activity and to manage the day to day activities the unti will
be employing experienced staff which will be available locally. Considering, the vast scope and potential of the promoter, it can be
safely concluded that the unit will be success under his able management. The promoter has in-depth knowledge about this activity
and thus will not face any problem in carrying out these activities smoothly.

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

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

SHOP (900 SQFT) 900 4500.00 4050000.00
DECORATION 900 1000.00 900000.00
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 4950000.00
#REF!
C. Product / Item Qty. Rate Amount in Rs.
GOLD JEWELLERY 20000000.00
SILVER JEWELLERY 5000000.00
DIAMOND JEWELLERY 10000000.00
OTHERS 5000000.00
0
0
0
0
0
0
0
0
Total 40000000.00

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 d. Preliminary & Pre-operative Cost : Rs. 5000000.00

e. Furniture & Fixtures : Rs. 1000000.00

f. Contingency/Others/Miscellaneous : Rs. 500000.00

Total Capital Expenditure : Rs. 44950000.00

Working Capital : Rs. 6500000.00

Total Cost Project : Rs. 51450000.00

3.1 Means of Financing :

Own Contribution 25% Rs. 12862500.00

Finance Required : 75%

Term Loan Rs. 33712500.00
Working Capital Rs. 4875000.00

Total Rs. 38587500.00

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

Interest @
Year Opening Balance Installment Closing Balance
12.00%
1st 33712500 1685625 32026875 4045500
2nd 32026875 6742500 25284375 3843225
3rd 25284375 6742500 18541875 3034125
4th 18541875 6742500 11799375 2225025
5th 11799375 6742500 5056875 1415925
6th 5056875 6742500 0 606825
7th 0 0 0 0
8th 0 0 0 0

WORKING CAPITAL

Interest @
Year Opening Balance Installment Closing Balance
12.00%
1st 4875000 243750 4631250 585000
2nd 4631250 975000 3656250 555750
3rd 3656250 975000 2681250 438750
4th 2681250 975000 1706250 321750
5th 1706250 975000 731250 204750
6th 731250 975000 0 87750
7th 0 0 0 0
8th 0 0 0 0

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3.3 STATEMENT SHOWING THE DEPRECIATION ON FIXED ASSETS:
WORKSHED @ 8.00%
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Opening Balance 4950000 4554000 4189680 3854506 3546145
Depreciation 396000 364320 335174 308360 283692
Closing Balance 4554000 4189680 3854506 3546145 3262454
MACHINERY @ 12.00%
Opening Balance 40000000 35200000 30976000 27258880 23987814
Depreciation 4800000 4224000 3717120 3271066 2878538
Closing Balance 35200000 30976000 27258880 23987814 21109277
TOTAL DEPRECIATION
Workshed 396000 364320 335174 308360 283692
Machinery 4800000 4224000 3717120 3271066 2878538
Total 5196000 4588320 4052294 3579426 3162229

4 Schedule of Sales Realization :

4.1 Details of Sales
Rate/ No. of Amount in Rs.
Particulars of Product
Pair/Unit Pair/Unit
0
JEWELLERY SALE 0.00 0 27000000.00
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
0 0.00 0 0.00
Total 27000000.00

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 18900000 21600000 24300000 24300000 24300000

5 Rawmaterials :
Particulars Unit Rate/unit Reqd.Unit Amount in Rs.
GOLD, SILVER 0 0.00 0 10000000.00
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
0 0 0.00 0 0.00
Total 10000000.00
5.1 Wages :
No. of Wages Amount in Rs.
Particulars
Worker Per Month (Per Annum)
WORKER (SKILLED) 6 15000.00 1080000.00
WORKER (UNSKILLED) 2 8000.00 192000.00
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 8 1272000.00

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5.2 Repairs and Maintenance : Rs. 10000.00

5.3 Power and Fuel : Rs. 36000.00

5.4 Other Overhead Expenses : Rs. 50000.00

6 Administrative Expenses :
6.1 Salary
MANAGER 1 20000.00 240000.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0.00 0.00
0 0.00 0.00
Total 1 240000.00

6.2 Telephone Expenses 4000.00

6.4 Stationery & Postage 2000.00

6.5 Advertisement & Publicity 25000.00

6.6 Workshed Rent 144000.00

6.7 Other Miscellaneous Expenses 20000.00

Total 435000.00
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 7000000 8000000 9000000 9000000 9000000
Wages 890400 1017600 1144800 1144800 1144800
Repairs & Maintenance 7000 8000 9000 9000 9000
Power & Fuel 25200 28800 32400 32400 32400
Other Overhead Expenses 35000 40000 45000 45000 45000
Administrative Expenses
Salary 240000 240000 240000 240000 240000
Postage Telephone Expenses 2800 3200 3600 3600 3600
Stationery & Postage 1400 1600 1800 1800 1800
Advertisement & Publicity 17500 20000 22500 22500 22500
Workshed Rent 144000 144000 144000 144000 144000
Other Miscellaneous Expenses 14000 16000 18000 18000 18000
Total: 8377300 9519200 10661100 10661100 10661100
8 Assessment of Working Capital :
Particulars Amount in Rs.
Sale 27000000.00

Manufacturing Expenses
Raw Material 10000000.00
Wages 1272000.00
Repair & Maintenance 10000.00
Power & Fuel 36000.00
Other Overhead Expenses 50000.00

Production Cost 11368000.00

Administrative Cost 435000.00
Manufacturing Cost 11803000.00

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 Working Capital Estimate :
Element of Working Capital No of Days Basis Amount in Rs.
0 0 Material Cost 0.00

Stock in process 30 Production Cost 1136800.00

Finished goods 30 Manufacturing Cost 1180300.00

Receivable by 45 Manufacturing Cost 1770450.00

Total Working Capital Requirement Per Cycle 4087550.00

9 Financial Analysis
9.1 Projected Profit & Loss Account :
Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Sales / Receipts 18900000 21600000 24300000 24300000
18900000 21600000 24300000 24300000
Manufacturing Expenses
Rawmaterials 7000000 8000000 9000000 9000000
Wages 890400 1017600 1144800 1144800
Repairs & Maintenance 7000 8000 9000 9000
Power & Fuel 25200 28800 32400 32400
Other Overhead Expenses 35000 40000 45000 45000
Depreciation 5196000 4588320 4052294 3579426
Production Cost 13153600 13682720 14283494 13810626
Administrative Expenses
Salary 240000 252000 264600 277830
Postage Telephone Expenses 2800 3200 3600 3600
Stationery & Postage 1400 1600 1800 1800
Advertisement & Publicity 17500 20000 22500 22500
Workshed Rent 144000 144000 144000 144000
Other Miscellaneous Expenses 14000 16000 18000 18000
Administrative Cost 419700 436800 454500 467730
Interest on Bank credit @ 12%
Term Loan 4045500 3843225 3034125 2225025
Working Capital Loan 585000 555750 438750 321750
Cost of Sale 18203800 18518495 18210869 16825131
Net Profit Before Tax 696200 3081505 6089131 7474869
Less Tax 0.00 0.00 0.00 0.00
Net Profit 696200 3081505 6089131 7474869

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 696200 3081505 6089131 7474869
Add :
Depreciation 5196000 4588320 4052294 3579426
TOTAL - A 5892200 7669825 10141425 11054295
Payments :
On Term Loan :
Interest 4045500 3843225 3034125 2225025
Installment 1685625 6742500 6742500 6742500
On Working Capital
Interest 585000 555750 438750 321750
TOTAL - B 6316125 11141475 10215375 9289275
D.S.C.R = A/B
0.93 0.69 0.99 1.19
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 12862500 12862500 12862500 12862500
Profit 696200 3081505 6089131 7474869
Term Loan 33712500 32026875 25284375 18541875
Working Capital Loan 4875000 4631250 3656250 2681250
Current Liabilities 0 0 0 0
Sundry Creditors 0 0 0 0
52146200 52602130 47892256 41560494
ASSETS :
Gross Fixed Assets : 45950000 40754000 36165680 32113386
Less : Depreciation 5196000 4588320 4052294 3579426
Net Fixed Assets 40754000 36165680 32113386 28533960
Preliminary & Pre-Op. Expenses 5000000 3750000 2812500 2109375
Current Assets 4875000 4631250 3656250 2681250
Cash in Bank/Hand 6517200 11805200 12122620 10345284
Total 52146200 52602130 47892256 41560494

9.4 CASH FLOW STATEMENT :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Net Profit 696200 3081505 6089131 7474869
Add : Depreciation 5196000 4588320 4052294 3579426
Term Loan 33712500 32026875 25284375 18541875
Working Capital Loan 4875000 4631250 3656250 2681250
Promoters Capital 12862500 0 0 0
Total 57342200 44327950 39082050 32277420

Total Fixed Capital Invested 44950000

Repayment of Term Loan 1685625 6742500 6742500 6742500

Repayment of WC Loan 243750 975000 975000 975000
Current Assets 4875000 4631250 3656250 2681250
Total 6804375 12348750 11373750 10398750

Opening Balance 0 50537825 82517025 110225325

Surplus 50537825 31979200 27708300 21878670
Closing Balance 50537825 82517025 110225325 132103995

9.5 BREAK EVEN POINT AND RATIO ANALYSIS :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Fixed Cost 9661200 8868345 7540919 6272181
Variable Cost 13738600 14238470 14722244 14132376
Total Cost 23399800 23106815 22263164 20404557

Sales 18900000 21600000 24300000 24300000

Contribution (Sales-VC) 5161400 7361530 9577756 10167624

B.E.P in % 187.18% 120.47% 78.73% 61.69%

Break Even Sales in Rs. 35377355 26021255 19132284 14990129

Break Even Units 536021 394261 289883 227123

Current Ratio 0.74 0.38 0.33 0.26

Net Profit Ratio 3.68% 14.27% 25.06% 30.76%

Full Name : SHRI MANISH JEWELLERS

Place : KOLKATA
Signature of the Beneficiary

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