Project at a Glance

1)Name of the enterprenuer: Shri.Abhishek Avinash Punde

2)Constitution(legal status): Propritor,Aishwarya Paper Industries
3)Father and spouse name: Shri.Avinash Punde

4)Unit address: Aishwarya Paper Industries c/o Vite

transport khodad road,adesh

electrical,narayangaon tal.junnar

dist.pune,410504 state.maharashtra

5)Product and by products: Sundry mill booard

6)Name of project/business activity proposed: Sundry mill board

7)Cost of projects: Rs.25.00 lacs.

8)Means of finance term loan: Rs.17.10 lacs.

9)Debtor service ratio: Rs.2.76 lac

10)Pay back period: 5 Year

11)Project implementation period: 6 Months

12)Break even point: 16%

13)Employment: 10 Person
14)Power requirement: 73 H.P.

15)Major raw material: waste paper,waste craft,core

pipes,paper tube,cones and office

records etc.

16)Estimated annual turnover: 106 lacs

17)Detailed cost of project and means of finance:
Cost of project

PARTICULARS AMOUNT(in lacs)

Land Owned
Building and civil works Rs.2.70
Plant and machionery Rs.15.60
Furnitureand fixtures Rs.0.30
Pre-operative expences Rs.0.40
Working capital Rs.6.00
Total Rs.25.00

Means of Finance
Own Contribution 10% Rs.2.50
Term loan Rs.17.10
Working capital finance Rs.5.40
Total Rs.25.00

Plant and Machinery Qty. Rate. Amount.

Fordrinior machine 1 4.25 4.25
Hydra-pulper 1 1.50 1.50
Agitator machine 1 1.40 1.40
Callender machine 1 5.25 5.25
Cutting machine 1 2.50 2.50
Pulp-pump 1 0.60 0.60
Weighing machine 1 0.10 0.10
Total in lacs 15.60
Rates are indicative only
PROJECT CASHFLOW STATEMENT

PARTICULARS 1 Year 2 Year 3 Year 4 Year 5 Year

Source of fund
Share capital 2.50 -
Reserv and surplus 4.39 7.60 9.96 12.28 14.92
Depreciation 2.64 2.25 1.93 1.65 1.41
Increase in cash-credit 5.40 - - - -
Increase in term loan 17.10 - - - -
Increase in creditors 14.96 2.00 2.00 2.00 2.00
Increase in provision 3.50 0.50 0.50 0.50 0.50
Total 50.49 12.35 14.39 16.43 18.83

Application of funds.
Increase in fixed assets 19.00 - - - -
Increase in stock 16.96 2.00 2.00 2.00 2.00
Increase in debtors 4.00 0.60 0.50 0.50 0.50
Increase in deposits and adv. 2.00 0.40 0.45 0.50 0.55
Repayment of term loan 3.40 3.40 3.40 3.40 3.50
Taxation - 0.76 0.99 1.23 1.49
Total 45.36 7.16 7.34 7.63 8.04
Op. Cash and Balance - 5.13 10.32 17.37 26.37
Add surplus 5.13 10.32 17.37 26.37 37.16
 PROJECT BALANCESHEET
PARTICULARS 1Year 2Year 3Year 4Year 5Year
Source of fund
Capital account 2.50 2.50 2.50 2.50 2.50
Retained profit 4.39 13.76 24.81 37.76 52.46
Term loan 17.10 13.70 10.30 6.90 3.50
Cash-credit 5.40 5.40 5.40 5.40 5.40
Sundry creditors 14.96 15.10 16.30 17.00 18.00
Provission and other liab. 3.50 4.00 4.40 4.84 5.32
Total 47.85 54.46 63.71 70.40 87.18
Application of funds
Fixed assets(gross) 19.00 19.00 19.00 19.00 19.00
Gross depreciation 2.64 4.89 6.82 8.47 9.88
Net fixed assets 16.36 14.11 12.18 10.53 9.12
Current assets
Sundry debtors 4.00 4.52 5.04 5.56 6.08
Stock in hand 16.96 19.84 22.72 25.04 27.72
Cash and bank 5.13 10.34 17.37 26.37 37.16
Deposit & adv. 2.00 2.25 3.00 3.50 3.60
Repayment 3.40 3.40 3.40 3.40 3.50
Total 47.85 54.46 63.71 74.40 87.18
 PROJECT PROFITABILITY STATEMENT
PARTICULARS 1Year 2Year 3Year 4Year 5Year
A Sales
Gross sales 106.25 129.75 145.00 160.50 178.00
Total A 106.25 129.75 145.00 160.50 178.00
B Cost of sales
Raw material 75.00 83.00 93.00 103.00 114.00
Elect. Charges 7.70 8.57 9.53 10.58 11.76
Repairs-maintenance - 1.45 1.62 1.80 2.00
Labor & wages 17.03 18.73 20.60 22.66 24.92
Depreciation 2.64 2.25 1.93 1.65 1.41
Consumable packaging 1.97 2.19 2.43 2.70 3.00
and others
Cost of production 104.34 116.19 129.11 142.39 157.09
Add op. stock - 9.45 10.50 11.66 12.96
Less cl. Stock 9.45 10.50 11.66 12.96 14.40
Cost of sales B 94.89 115.1 127.95 141.09 155.65
4
C Gross profit 11.36 14.61 17.05 19.41 22.35
D Int. term loan 1.90 1.49 1.08 0.68 0.27
Int. cash credit 0.76 0.76 0.76 0.76 0.76
E Salary to staff 3.00 3.30 3.63 3.89 4.40
F Sleling and adm. 1.31 1.46 1.62 1.80 2.00
expenses
Total D+E+F 6.97 7.01 7.09 7.13 7.43
H Net Profit 4.39 7.60 9.96 12.28 14.92
Taxation - 0.76 0.99 1.23 1.49
J Profit after tax 4.39 6.84 8.97 11.05 13.43
 COMPATATION OF MANUFACTURING OF SUNDRY HANDMADE
BOARD ITEM TO BE MANUFACTURED SUNDRY HANDMADE BOARD

Manufacturing capacity per day 2.40/M.T.

No.of working hour 8 Hours

No. of working days per months 25 Days

No. of working days per annum 300 Days

Total production per annum 720 M.T.

Year Capacity utilization

1 year 60% 473 m.t.
2 year 70% 525 m.t.
3 year 80% 583 m.t.
4 year 90% 648 m.t.
5 year 100% 720 m.t.
COMPUTATION OF RAW MATERIAL

ITEM NAME RECOVERY QTY. RATE TOTAL

M.T. M.T. COST
Waste paper,waste 100% 106% 763 15000 114.00
craft,mill board,core /- lacs
pipe,cone paper
tube,office record.
Annual consumption Total in lacs 11400

Raw material consumed Capacity Amount

1 year 60% 75.00
2 year 70% 83.00
3 year 80% 93.00
4 year 90% 103.00
5 year 100% 114.00

COMPATATION OF CLOSING STOCK AND WORKING CAPITAL.

PARTICULARS 1 2 3 4 5
YEAR YEAR YEAR YEAR YEAR
Finished goods 09.45 10.50 11.66 12.96 14.40
30 days required
Raw material 7.51 8.35 9.27 10.30 11.45
30 days required
Closing stock 16.96 18.85 20.93 23.26 25.85

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Stock in hand 16.96

Sundry debtor 4.00
Sundry creditors 20.00
Total. 14.96
Working capital requirement 6.00
Margin 60
Working capital finance 5.40
 BREAK UP OF LABOUR
Particulars Wages per No. of Total salary
months employee
Supervisor 15000.00 1 15000.00
Skilled 15000.00 2 30000.00
Unskilled 14000.00 6 84000.00
Add 10% fringe 129000.00
Benefit 12900.00
Total labour cost per 141900.00
month
Total labour cost for 9 17.03
the year

BREAK UP OF SALARY
Particulars Salary per No. of Total
month employee salary
Sales cum accountant 23000.00 1 23000.00
Total salary per month 23000.00
Add 10% fringe benefit 2300.00
Total salary per month 25300.00
Total salary for the year 1 3.00
in lacs
 COMPUTATION OF DEPRICIATION
Describtion Land Building Machinery Furniture Total
Rate of depri. 10% 15% 10%
Op.balance Own
Addition - 2.70 15.60 0.30 18.60
Less deprci - 0.27 2.34 0.03 2.64
WDV at 1 year - 2.43 13.26 0.27 15.96
Addition - - - - -
2.43 13.26 0.27 15.96
Less deprici - 0.24 1.99 0.02 2.25
WDV at 2 year - 2.19 11.27 0.25 13.71
Addition - - - - -
- 2.19 11.27 0.25 13.71
Less deprici - 0.22 1.69 0.02 1.931
WDV at 3 year - 1.97 9.58 0.23 11.78
Addition - - - - -
- 1.97 9.58 0.23 11.78
Less deprici - 0.20 1.44 0.01 1.65
WDV at 4 year - 1.77 8.14 0.22 10.13
Addition - - - - -
- 1.77 8.14 0.22 10.13
Less deprici - 0.18 1.22 0.01 1.41
WDV at 5 year - 1.59 6.92 0.21 8.72
 REPAYMENT SCHEDUDE OF TERM LOAN.

Year Particulars Amount Add. Total Int. Repay cl.balance

1 Op. balance
1st quarter - 17.10 17.10 0.51 0.85 16.25
2nd quarter 16.25 - 16.25 0.49 0.85 15.40
3rd quarter 15.40 - 15.40 0.46 0.85 14.55
4th quarter 14.55 - 14.55 0.44 0.85 13.70
1 1.90 3.40
2 Op. balance
13.70
-
13.70 0.41 0.85 12.85
1st quarter -
2nd quarter 12.85 - 12.85 0.39 0.85 12.00
3rd quarter 12.00 - 12.00 0.36 0.85 11.15
4th quarter 11.15 - 11.15 0.33 0.85 10.30
2 1.49 3.40
3 Op.balance 10.30 - 10.30 0.31 0.85 9.45
1st quarter 9.45 - 9.45 0.28 0.85 8.60
2nd quarter 8.60 - 8.60 0.26 0.85 7.75
3rd quarter 7.75 - 7.75 0.23 0.85 6.90
3 1.08 3.40
4 Op. balance
1st quarter 6.90 - 6.90 0.21 0.85 9.45
2nd quarter 6.05 - 6.05 0.18 0.85 8.60
3rd quarter 5.20 - 5.20 0.16 0.85 7.75
4th quarter 4.35 - 4.35 0.13 0.85 6.90
4 0.68 3.40
5 Op. balance
3.50 - 3.50 0.11 0.85 2.65
1st quarter
2nd quarter 2.65 - 2.65 0.08 0.85 1.80
3rd quarter 1.80 - 1.80 0.05 0.85 0.95
4th quarter 0.95 - 0.95 0.03 0.95 -
5 0.27 3.50
 CALCULATION OF D.S.C.R.
Particulars 1 2 3 4 5
year year year year year
Cash accruals 7.03 9.09 10.90 12.70 14.84
Int. on term loan 1.90 1.49 1.08 0.68 0.27
Total 8.93 10.58 11.98 13.38 15.11
Repayment
Int. on t.loan 3.40 3.40 3.40 3.40 3.50
Int. on t.loan 1.90 1.49 1.08 0.68 0.27
Total 5.30 7.89 4.48 4.08 3.77
D.S.C.R. 1.68 2.16 2.67 3.28 4.00
Average D.S.C.R. 2.76
 COMPUTATION OF SALE
Particulars 1 year 2 year 3 year 4 year 5 year
Op. stock M.T. - 47 53 58 65
Production M.T. 473 525 583 648 720
Total M.T. 473 572 636 706 785
Less op. stock 47 53 58 65 72
Net sales M.T. 426 519 578 641 713
Sales price per 0.25 0.25 0.25 0.25 0.25
M.T. lacs
Sales in lacs 106.25 129.25 145.00 160.50 178.00
 COMPUTATION OF ELECTRICITY
A power consumption
Total working hour per day Hours 8 Lacs
Electric load required HP 73
Load factor 0.7460
Electricity charges Unit 9.00
Total working days 300
Electricity charges per 8 hour 11.76
Total cost of power 11.76

Capacity Amount
1 year 60% 07.70
2 year 70% 08.57
3 year 80% 09.53
4 year 90% 10.58
5 year 100% 11.76
 BREAK EVEN POINT ANALYSIS
Year 1 2 3 4 5
Net sales and other income 106.25 129.25 145.00 160.50 178.00
Less opening WIP goods - 9.45 10.50 11.66 12.96
Add. Cl. WIP goods 9.45 10.50 11.66 12.96 14.40
Total sales 115.70 128.70 143.84 159.3 176.56
0
Variable Expenses
Raw material 75.00 83.00 93.00 103.00 114.00
Electricity expenses 85% 6.55 7.28 8.10 9.00 10.00
Manufacturing Exps.80% 1.58 2.91 3.24 3.60 4.00
Wages and salary 60% 12.02 13.22 14.54 16.00 17.59
Selling and admintrative 80% 1.05 1.17 1.30 1.44 1.60
Interest working capital 0.76 0.76 0.76 0.76 0.76
Total 96.96 108.34 120.94 133.8 147.95
0
Contribution 18.74 20.36 22.90 25.50 28.61
Fixed and semi fixed expenses.
Manufacturing expenses 20% 0.39 0.44 0.48 0.54 0.60
Electricity exps. 15% 1.16 1.29 1.43 1.58 1.76
Wages and salary 40% 8.00 8.81 9.69 10.62 11.73
Interest on term loan 1.90 1.49 1.08 0.68 0.27
Depriciation 2.64 2.25 1.93 1.65 1.41
Selling and Adm. 20% 0.26 0.29 0.32 0.36 0.40
Total fixed assets 14.35 14.57 14.93 15.43 16.17
60% 70% 80% 90% 100%
Operating profit 4.39 6.84 8.97 11.05 14.92
Break even point 16% 16% 16% 16% 16%
Break even sales 89.69 91.06 93.31 96.43 101.00

TECHNICAL FEASIBITY
A)Location of the project:-
This unit can be established at any rural,semi urban as
well as urban lacation. Land area of about 1800 sq. feet
with the water facitity is good enough to run this
industrial unit.
B)Raw materials:-
Waste paper,waste craft paper, core pipes
cones,papertabels and office record waste;
C)utilities
1.power :- the total requirement of the unit is 73HP
2.water:- The water requirement of the unit fot the
production 2.5 M/ca per day
3. Emfluent treatment :- The enfluent discharged for
sundry mill board plant contain only very insignificant
of waste water influent will be treated before discharge
to near by agro farms and drainage.
D) Technology and manufacturing process
1.Plant and machinery
The standard equipment is available for sundya mill
board production.The important along them are .
a)Hydra palper :- It is used for malcing pulp by
impeller to convert the waste paper into pulp .
b)Pulp pump:- The pulp is pumped by a pulp pump
from the stuff chest to head box.
d)Fordrinior Machine :- The shet so formed
automatically from the plastic felt , it is wrapped
around the press roll in number of layers depending
upon the basic weight , of the mill mill board an
aadequate pressure is given on the press roll for
removal of water from the mill board and malcing it
compact and stiff.
e) callender machine :- It is series of bard pressure
rollers used to form or smoothen a sheet.
f) Cutting machine :- Is used for mill board cutting.
 g) Weighing machine :- For weighing or measuring
weight of raw material and finished mill board.
# Manufacturing process :-
The basic raw material for manufacture of sundry
handmade mill board will be inferior variety of waste
paper , kraft paper , caries , core pipes , paper tube will
be used along with street collections for getting
additional strength to the mill board . there are regular
traders who collect such awaste paper in Pune ,
Nashik ,Mumbai , Ahmadnagar cities.
On receipt of the raw material , the waste paper is
sorted near the ‘Hydro palper ‘ to remove the
contararies or unwanted material and is the added
straight way in hydro palper in which water is also
added in sufficient quantity , for conversion of waste
paper into palp. The Hydro palper can be used for
continues pulping or for batch pulping .The period
required for batch pulping will be about 30 to 40
minutes . The heavy impeller at the center of hydra
palper converts the waste paper in palp.
The palp from hydra palper is then discharged in the
chest , where it is diluted with back water and also
stirred well with a gitator to have the uniform
consistency .
From the stuff chest the pulp is pumped by apalp pump
to head box where it is further diluted by process of
water , the dilution to be done is depend upon basic
weight i.e. grammes/deca-grams/ or oance of mill
board to be manufactured.
From the head box the pulp flow through frodrinior
wire mesh machine. The sheet so formed automatically
transferred on plastic jail felt from the plastic felt it is
wrapped around the press in number of layers
dependents on the basic weight , of the mill board , and
adequate pressure is given on the press roll for removal
of water from the sheet roll and stacked one over the
other .
The stacks of the mill board taken out from the sheet
roll are then sent out an a trolley , in a open for
sundrying on the ground.The board are spread on the
open land in sun for dying . If necessary the mill board
can also be dried in mill board can also be dried in
shade by hanging sheets in specially manufactured m.s
or steet clip.
The dried mill board is then callendered in callendery
machine for smooth enins the the top and bottom side
the mill board .

The callendering board are then sorted by weightns on

special scale to separate the mill board of different
weight i.e.20 02 ,24 02 and 28 02 etc. Then cut in the
required size in which the mill boards are is sold are
32”*42” or 31”*42” . The mill board are then packed in
bundles of 25 kg each with a satali are labeled to
indicate size and weight of mill board . These bundles
are new ready for sales . The weight per sheet is also
now a days indicated in deca gramm. ( 1 deca = 0.3527
oance ).