PROJECT AT A GLANCE –TOP SHEET

1. Name of the Entreprenuer Shri Rothanliana

2. Constitution (Legal Status) Individual
3. Mother’s/Spouce Name : S/O Thanmawii Pautu
4. Unit Adress : Bungkawn
0
Taluk/Block : Tlangnuam
District : Aizawl
Pin : 796001 State : Mizoram
E-Mail : 0
Mobile 9774541604

5. Product and By Product Grill Frame, Windows Fame,etc

6. Cost of Project : Rs. 25,00,000
Name of the Project / Business
activity proposed : Steel Fabrication
7. Means of Finance :
Term Loan Rs. 23,75,000.00
KVIC Margin Money Rs. 6,25,000.00
Own Capital Rs. 125000.00
8. Debt Service : 1.82
Caverage Ratio
9. Pay Back Period : 10 Years
10. Project : 3 Months
Implementation
Period
11. Break Even Point : 46.90%
12. Employment : 25
13. Power Requirement : Yes
14. Major Raw Materials : Raw Steel, Nail, Brush, etc
15. Estimate Annual : Rs. 2595000.00
Sales Turnover
16. Financing Bank : MCAB – Main Branch
 DETAILED PROJECT REPORT

1. INTRODUCTION

Until recently they no steel Fabrication Unit of Mizoram. Some person has need to go for this
unit are get with the other state or foreign country. In this time they are no Steel Fabrication Unit. In
the early 80’s, some few local people have introduced. Steel fabrication Unit that are not sufficient to
the people of Aizawl/around Mizoram. Some few people are using this Steel Fabrication Unit with a
personal need. Around 1994- till date, many people are using a modernized machinery to set up unit
with some foreign or Indian knowledge, many people are using this unit,with good servicing to the
customer done by this unit.

2. ABOUT THE PROMOTER

The project is to be promoted and implemented by Shri Rothanliana, Bungkawn, Aizawl dist. He
is a personal experience in different Steel Fabrication Unit for a period of time. The promoter, after
through study of the market, realized that there is a substantial opportunity in a formal business set-up
for deriving flourishes business in Steel Fabrication Unit. According to a quick research done, the market
is huge and there will be a good market if the project is implemented. Thus, the proprietor is confident
of creating substantial value-addition in Steel Fabrication Unit.

3. COST OF PROJECT

A. Fixed Capital Investment

a. Land Owned Own

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

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
0 0 0.00 0.00
0 0 0.00 0.00
Total 0.00
#REF!
C. Machinery Qty. Rate Amount in Rs.
Welding Machine 3 275000.00 825000.00
Drilling Machine 8 45500.00 364000.00
Cutter,etc 8 15000.00 120000.00
Grinder 8 17500.00 140000.00
Other Machineries 0 0.00 7500.00
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
0 0 0.00 0.00
0 0 0.00 0.00
Total 1456500.00
d. Preliminary & Pre-operative Cost : Rs. 6000.00

e. Furniture & Fixtures : Rs. 27500.00

f. Contingency/Others/Miscellaneous Rs. 10000.00

Total Capital Expenditure : Rs. 1500000.00

Working Capital : Rs. 1000000.00

Total Cost Project : Rs. 2500000.00

3.1 Means of Financing :

Own Contribution 5% Rs. 125000.00

Bank Finance : 95%

Term Loan Rs. 1425000.00
Working Capital Rs. 950000.00

Total Rs. 2375000.00

Margin Money (Govt. Subsidy) From KVIC 25% Rs. 625000.00

Margin Money Subsidy received From KVIC will be kept in term dposit as per norms of
PMEGP in the name of Beneficiary fot three years in the financing branch.

3.2 STATEMENT SHOWING THE REPAYMENT OF TERM LOAN & WORKING CAPITAL :
TERM LOAN
Year Opening Balance Installment Closing Balance Interest @
14.50%
1st 1425000 35625 1389375 206625
2nd 1389375 142500 1246875 201459
3rd 1246875 142500 1104375 180797
4th 1104375 142500 961875 160134
5th 961875 142500 819375 139472
6th 819375 142500 676875 118809
7th 676875 142500 534375 98147
8th 534375 142500 391875 77484

WORKING CAPITAL
Year Opening Balance Installment Closing Balance Interest @
14.50%
1st 950000 23750 926250 137750
2nd 926250 95000 831250 134306
3rd 831250 95000 736250 120531
4th 736250 95000 641250 106756
5th 641250 95000 546250 92981
6th 546250 95000 451250 79206
7th 451250 95000 356250 65431
8th 365250 95000 261250 51656
 3.3 STATEMENT SHOWING THE DEPRECIATION ON FIXED ASSETS:
WORKSHED @
5.00%
st nd rd th
Particulars 1 Year 2 Year 3 Year 4 Year 5TH Year
Opening Balance 0 0 0 0 0
Depreciation 0 0 0 0 0
Closing Balance 0 0 0 0 0
MACHINERY @ 10.00%
Opening Balance 1456500 1310850 1179765 1061789 955610
Depreciation 145650 131085 117977 106179 95561
Closing Balance 1310850 1179765 1061789 955610 860049
TOTAL DEPRECIATION
Workshed 0 0 0 0 0
Machinery 145650 131085 117977 106179 95561
Total 145650 131085 117977 106179 95561

4. Schedule of Sales Realization :

4.41 Detail of Sales
Particulars of Product Rate/ No.of Amount in Rs.
Pair/Unit Pair/Unit
0
Grill, Frame, etc 750.00 3400 2550000.00
Other Receipt 0.00 0 45000.00
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 2595000.00

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 1816500 2076000 2335500 2335500 2335500

5 Rawmaterials :

Particulars Unit Rate/Unit Reqd.Unit Amount in Rs

Raw Steel 0 400.00 300 120000.00
Nail, Brush,etc 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 120000.00
5.1 Wages :

Particulars No.of Wages Amount in Rs.

Workers Per Month (Per annum)
Skilled Worker 3 7000.00 252000.00
Unskilled 20 3000.00 720000.00
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 23 972000.00

5.2 Repairs and Maintenance : Rs. 14000.00

5.3 Power and Fuel : Rs. 1450.00

5.4 Other Overhead Expenses : Rs. 950.00

6 Administrative Expenses :
6.1
Salary
Manager 1 0.00 Self
Assistant 1 0.00 Brother
0 0 0.00 0.00
0 0.00 0.00
0 0.00 0.00
Total 2 0.00

6.2 Telephone Expenses 1388.00

6.4 Stationery & Postage 680.00

6.5 Advertisement & Publicity 1000.00

6.6 Workshed Rent 0.00

6.7 Other Miscellaneous Expenses 1000.00

Total 4068.00
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 84000 96000 108000 108000 108000
Wages 680400 777600 874800 874800 874800
Repairs & Maintenance 9800 11200 12600 12600 12600
Power & Fuel 1015 1160 1305 1305 1305
Other Overhead Expenses 665 760 855 855 855
Administrative Expenses
Salary 0 0 0 0 0
Postage Telephone Expenses 972 1110 1249 1249 1249
Stationery & Postage 476 544 612 612 612
Advertisement & Publicity 700 800 900 900 900
Workshed Rent 0 0 0 0 0
Other Miscellaneous Expenses 700 800 900 900 900
Total 778728 889974 1001221 1001221 1001221

8 Assesment of Working Capital :

Particulars Amount in Rs.

Sale 2595000.00

Manufacturing Expenses
Rawmaterials 120000.00
Wages 972000.00
Repairs & Maintenance 14000.00
Power & Fuel 1450.00
Other Overhead Expenses 950.00
Production Cost 1108400.00
Administrative Cost 4068.00
Manufacturing Cost 1112468.00

Working Capital Estimate :

Element of Working Capital No.of Days Basis Amount in Rs.

0 0 Material Cost 0.00

Stock in Process 90 Production Cost 332520.00

Finished goods 90 Manufacturing Cost 333740.00

Receivable by 90 Manufacturing Cost 333740.00

Total Working Capital Requirement Per Cycle 1000000.00

9 Financial Analysis

9.1 Projected Profit & Loss Account :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Sales/Receipt 1816500 2076000 2335500 2335500
1816500 2076000 2335500 2335500
Manufacturing Expenses
Rawmaterials 84000 96000 108000 108000
Wages 680400 777600 874800 874800
Repair & Maintenance 9800 11200 12600 12600
Power & Fuel 1015 1160 1305 1305
Other Overhead Expenses 665 760 855 855
Depreciation 145650 131085 117977 106179
Production Cost 921530 1017805 1115537 1103739
Administrative Expenses
Salary 0 0 0 0
Postage Telephone Expenses 972 1110 1249 1249
Stationery & Postage 476 544 612 612
Advertisement & Publicity 700 800 900 900
Workshed Rent 0 0 0 0
Other Miscellaneous Expenses 700 800 900 900
Administrative Cost 2848 3254 3661 3661
Interest on Bank Credit @14.5%
Term Loan 206625 201459 180797 160134
Working Capital Loan 137750 134306 120531 106756
Cost of sale 1268753 1356825 1420526 1374291
Net Profit Before Tax 547747 719175 914974 961209
Less Tax 0.00 0.00 0.00 0.00
Net Profit 547747 719175 914974 961209

9.2 CALCULATION OF DEBT SERVICE CREDIT RATIO (D.S.C.R) :

Particulars 0 Year 1st Year 2nd Year 3rd Tear 4th Year
Net Profit 547747 719175 914174 961209
Add :
Depreciation 145650 131085 117977 106179
TOTAL – A 693397 850260 1032951 1067388
Paymenta:
On Term Loan :
Interest 206625 201459 180797 160134
Installment 35625 142500 142500 142500
On Working Capitals
Interest 137750 134306 120531 106756
TOTAL - B 380000 478266 443828 409391
D.S.C.R = A/B 1.82 1.78 2.33 2.61
Average D.S.C.R
9.3 PROJECTED BALANCE SHEET :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
LIABILITIES :
Promoters Capital 125000 125000 125000 125000
Profit 547747 719175 914974 961209
Term Loan 1425000 1389375 1246875 1104375
Working Capital Loan 950000 926250 831250 736250
Current Liabilities 0 0 0 0
Sundry Creditors 0 0 0 0
3047747 3159800 3118099 2926834
ASSETS :
Gross Fixed Assets : 1484000 1338350 1207265 1089289
Less : Depreciation 145650 131085 117977 106179
Net Fixed Assets 1338350 1207265 1089289 983110
Preliminary & Pre-Op Expenses 6000 4500 3375 2531
Current Assets 950000 926250 831250 736250
Cash in Bank/Hand 759397 1026285 1197561 1207475
Total 3047747 3159800 3118099 2926834

9.4 CASH FLOW STATEMENT

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Net Profit 547747 719175 914974 961209
Add: Depreciation 145650 131085 117977 106179
Term Loan 1425000 1389375 1246875 1104375
Working Capital Loan 950000 926250 831250 736250
Promoters Capital 125000 0 0 0
Total 3193397 3165885 3111076 2908013

Total Fixed Capital Invested 1500000

Repayment of Term Loan 35625 142500 142500 142500

Repayment of WC Loan 23750 95000 95000 95000
Current Assets 950000 926250 831250 736250
Total 1009375 1163750 1068750 973750

Opening Balance 0 2184022 4186157 6228483

Surplus 2184022 2002135 2042326 1934263
Closing Balance 2184022 4186157 6228483 8162746
9.5 BREAK EVEN POINT AND RATIO ANALYSIS :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Fixed Cost 355123 335799 302435 269974
Variable Cost 1059280 1152111 1236068 1210495
Total Cost 1414403 1487910 1538502 1480470

Sales 1816500 2076000 2335500 2335500

Contribuation (Sales-VC) 757220 923889 1099432 1125005

B.E.P in % 46.90% 36.35% 27.51% 24.00%

Break Even Sales in Rs. 851906 754548 642455 560464

Break Even Unit 1136 1006 857 747

Current Ratio 2.35 1.62 1.54 1.46

Net Profit Ratio 30.15% 34.64% 39.18% 41.16%