PROJECT REPORT

OF

Takro Logistics LLP

DEALING IN : LEASING OF WAREHOUSES

SITE ADDRESS : VILLAGE MOHRI, SHAHBAD , DISTT. KURUKSHETRA

REGD OFFICE : H.NO. 45-B , MATI DAS NAGAR , AMBALA , HARYANA , 133001

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 TABLE of CONTENTS

1 ORGANISATION AT A GLANCE 3-4

2 PROJECT AT A GLANCE 5

3 INFRASTRUCTURE REQUIREMENT 6

4 MARKETING APPRAISAL 7-8

5 FINANCIAL APPRAISAL 9 - 13

a) COST OF PROJECT 9

b) MEANS OF FINANCE 9 - 10

c) PROJECTED PROFIATBILITY STATEMENT 11

d) PROJECTED BALANCE SHEET 12

e) PROJECTED FUND FLOW 13

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 Organisation – AT A GLANCE

M/s Takro Logistics LLP is a Limited Liability Partnership firm formed vide LLPIN No AAV-4043
dated January 23rd, 2021 with the Registrar of Companies, Delhi.

i) Name of the Firm : M/s Takro Logistics LLP

ii) Constitution : Limited Liability Partnership firm

iii) Designated Partners : 1. Sh. Atul Goel

2. Sh. Onkar Nath

3. Sh. Rakesh Sharma

iv) Site Address : Village Mohri , Shahbad , distt. Kurukshetra

v) Regd. Office Address : H. No. 45B , Mati Das Nagar , Ambala , Haryana

THE DESIGNATED PARTNERS

1. Sh. Atul Goel, is an architect with a prominent experience of 25 years in building construction and
property management and shall be handling the general administrative activities of the organization
2. Sh. Onkar Nath, has an experience of over 30 years in real estate business and warehousing and brings
with himself a vast practical experience in the warehousing field of business.
3. Sh. Rakesh Sharma has immense experience of 35 years in buying, selling and management of real
estate and has extensive knowledge of real estate business.
4. TOTAL FIXED CONTRIBUTION

The Fixed Contribution of the firm is Rs. 1 Lakhs. The firm will increase the contribution as and when the
same is required by way of obtaining current contribution/loans from partners.

PROFIT SHARING RATIO & CONTRIBUTION

%
PARTICULARS Contribution
HOLDING
Mr. Atul Goel 15% 15,000

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 Mrs. Tanu Goel 15% 15,000
Mr. Onkar Nath 21% 21,000
Mr. Rakesh Sharma 24.5% 24,500
Mrs. Kusum Sharma 24.5% 24,500
Total 1,00,000

MAIN OBJECT CLAUSE

To carry on the business of Construction, Renting and Selling of Commercial spaces and
Godowns and transportation of goods by road.

OBJECTIVE OF BUSINESS

We are the leading organization to offer our precious clients an optimum quality Warehouse
Rental Services. This service is carried out under the strict supervision of our experts using the
best techniques. A Warehouse Rental Service (WMS) is a key part of the supply chain and
primarily aims to control the movement and storage of materials within a warehouse and process
the associated transactions, including shipping, receiving, put away and picking.

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PROJECT – AT A GLANCE

PARTICULARS OF THE PROJECT

i) PROPOSED PROJECT

The firm has proposed to construct commercial warehouse and Godowns on NH 44 , RHS 188.6 km
stone , Village mohri , Shahbad, Distt. Kurukshetra , Haryana on a total land area of 8.1 acres and covered
area measuring 2,15,000 sq. ft. The total cost of the project is estimated at Rs. 24 Crores and Term
Loan of Rs.18.00 Crores, at a Debt : Equity of 3: 1.

ii) FEATURES OF THE PROJECT

 The starting point of any warehousing project is acquisition of land at an optimum cost. The
firm has been able to negotiate and acquire required land measuring total area of 8.1 acres.
At Village Mohri , Shahbad, Distt. Kurukshetra , Haryana on a total price of Rs. 4.3 crores.
The firm has been able to execute the purchase at this price, which is very economical in
comparison with market price, due to efficiency and experience of its partners in dealing in
real estate.

 The firm intends to construct warehouse/godown area having estimated covered area of
2,15,000 sq. ft and the project is expected to be completed by October 2021.

 Post completion of the project, the firm intends to lease the entire area to respective tenants
on long term rental basis ranging from large PSU and private companies who would prefer
the warehouse owing to its supreme location, state of the art construction quality and ease of
access for the clients.

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MAJOR INFRASTRUCTURE REQUIREMENT

BUILDING AND STORAGE FACILITIES

The building of a warehouse is the storage space for the warehouse. It is the most prominent part of any
warehousing facility. Its construction is simple but requires proper measurements according to racks
installation, fittings, pillars and planning of optimal utilization of land space owned. The construction of
building will require Cement, Sand, Coarse Aggregates, Steel Bars, Bricks, Paints, Tiles, and other
material such as doors, windows, bathroom accessories etc.

The quality of all the raw materials will be of top quality to make the building strong and durable. Steel
bars will also be used in construction of pillars in the building. The proposed covered area of the project
is estimated at 2,15,000 sq ft

Apart from the structural building, the warehousing facility would also consist of storage facilities
designed according to modern practices to ensure safe and efficient storage of all kinds of materials
including perishables, heavy goods etc. The storage facilities would also be modified according to the
requirements of the tenants and the nature of their products over the course of business.

ROADS

Roads are another essential of a warehousing facility for the movement of transport for carrying of the
goods stored in a warehouse. Roads will be properly built and connected to the building so as to provide
a smooth experience of movement of goods. Construction of roads require Soil, Stone Aggregates,
Bituminous Materials, Cement and Cement Concrete etc. Every raw material to be used for the
construction of roads will be high in quality to avoid frequent repairs and revamping.

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MARKETING APPRAISAL

The warehousing market in India was valued at INR 1,501.2 billion in 2019 and is expected to reach INR
2,821.1 billion by 2024, expanding at a CAGR of ~13.57% by 2024.

Traditionally ranked among one of the overlooked sectors in logistics, warehouses today have developed
into sophisticated stockrooms with advanced state-of-the-art facilities like real-time tracking mechanisms
in India.

Various initiatives taken by the Indian government have been driving the country's warehousing market
towards growth, but investors had started taking cognizance of the sector much before the implementation
of these reforms like granting infrastructure status to the logistics industry including warehousing. The
warehousing market in India accounts for approximately 25% of the total logistics cost.

MARKET INSIGHTS

The warehousing market is sub divided into four industrial segments namely industrial or retail
warehousing, container freight station or inland container depot (CFS/ICD), agricultural warehousing and
cold storage. Among these segments, agricultural warehousing is expected to witness the highest growth
rate of ~17.87% in terms of revenue, during the 2019-2024 forecast period.

The agricultural warehousing market was valued at INR 145.82 billion in 2019 and is expected to reach
INR 365.75 billion by the end of 2024. As of 2019, India has a total agri warehousing capacity of around
91 million metric tonnes with majority of the capacity being owned by state agencies. Growing need of
proper storage of fruits and vegetables in the country is fuelling the demand of agri-warehousing in the
country.

Currently, India's total warehousing capacity is estimated to be 160 Mn tonnes. Around 30% of this
capacity is managed by the private sector, and the rest is divided between FCI (Food Corporation of
India), CWC (Central Warehousing Corporation), SWC (State Warehousing Corporation), state agencies
and the co-operative sector.

The growth in the warehousing market in India is also largely being driven by the rise in international
business. Entry of numerous foreign as well as domestic industries in the country and establishment of

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manufacturing plants have generated greater export opportunities, which in turn has fuelled the demand
for warehousing spaces across the country.

The Indian warehousing industry is highly fragmented with several unorganized players operating in the
market. Organized players in the industry account for only 10% of the total market, whereas around 90%
of the warehousing space in the country is controlled by unorganized players who manage small-sized
warehouses with less/no mechanization.

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FINANCIAL APPRAISAL

A. COST OF PROJECT

The total cost of the proposed project has been estimated at Rs.24 crores which are briefly discussed
as under:

(Rs in Crores)

Description Rs.
Land Cost 4.30
Construction of Building, Shed, Roads and storage facilities 19.40
Office and administrative assets 0.30
Total 24.00

B. MEANS OF FINANCE

(Amount in cr.)

S. PARTICULARS
TOTAL AMOUNT
NO

A. COST OF PROJECT

1 Land Cost 4.30

2 Construction of Building and Shed 19.40
3 Office and administrative assets 0.30
Total 24.00

B. MEANS OF FINANCE

1 PARTNERS CONTRIBUTION 6.00

2 SECURED TERM LOANS 18.00
TOTAL 24.00

IMPORTANT FINANCIAL PARAMETERS

- Debt Equity Ratio : 3:1 (overall)

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- Promoters' Contribution : 25% (overall)

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 PROJECTED PROFITABILITY STATEMENT

The firm aims to lease out the entire covered area of 2,15,000 sq ft on long term rental basis to
industrial customers. This would lead to a steady and guaranteed stream of revenue which would
grow at average rate of 5-7% every year alongwith achievement of high profitability levels. As
can be seen from projected earnings position below, the firm would be earning substantial cash
profits with net profit being lower in initial years due to depreciation calculation. (The figures for
first year have been considered on the basis that renting will only begin from Nov 2021 onwards)

(Rs. In
Lacs)

Particulars Year-1 Year-2 Year-3 Year-4 Year-5

(A) INCOME

Rental Income 154.80 350.00 368.00 386.00 405.00

Total 154.80 350.00 368.00 386.00 405.00

Expenditure
Repair and Maintenance 5.50 7.00 15.00 20.00 25.00
Salary and Wages 10.00 20.00 40.00 45.00 47.25
Overhead Exp. 2.00 8.00 10.00 17.50 20.00
Total (Rs.) 17.5 35.00 65.00 82.50 92.25

Profit before
Dep., Int. & Tax 137.30 315.00 303.00 303.50 312.75

Less :- Interest
T/L (assumed@7%) 31.20 115.82 100.62 84.33 66.87
Total (Rs.) 31.20 115.82 100.62 84.33 66.87

Profit before .Dep. 106.10 199.18 202.38 219.17 245.88

Less :- Dep. 98.50 187.15 168.44 151.59 129.25

Profit after Dep. 7.60 12.03 33.95 67.58 116.63

Less :- I.Tax 2.00 3.60 10.00 20.00 40.00
Profit after Tax 5.60 8.43 23.95 47.58 76.63

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PROJECTED BALANCE SHEET

( A )Liabilities Year-1 Year-2 Year-3 Year-4 Year-5

Capital 0.00 605.60 608.03 621.98 649.55

Add: Additional Capital 600.00 0.00 0.00 0.00 20.00
Add:- Profit after Tax 5.60 8.43 23.95 47.58 76.63
605.60 614.03 631.98 669.55 746.18
Less:-Drawings 0.00 6.00 10.00 20.00 30.00
605.60 608.03 621.98 649.55 716.18
Secured Loans
Term Loan-Bank 1749.7 1539.52 1314.15 1072.48 813.34

Unsecured loans 0 0 50 100.00 100.00

Creditors 0.00 10.00 15.00 20.00 35.00

Expenses payable 5.00 10.00 15.00 20.00 30.00

Other Long Term

Liabilities 0.00 15.00 20.00 50.00 70.00

Total (Rs) 1754.70 1574.52 1414.15 1262.48 1048.34

TOTAL 2360.30 2182.55 2036.13 1912.03 1764.52

(B ) Assets
Fixed Assets 2400.00 2301.50 2114.35 1945.92 1794.32
Less: Dep 98.50 187.15 168.44 151.59 129.25
Net Block 2301.50 2114.35 1945.92 1794.32 1665.07

Current Assets
Sundry Debtors 30.00 40.00 50.00 65.00 60.00
Cash in hand 5.80 4.20 5.21 7.71 5.45
Other Assets 23.00 24.00 35.00 45.00 34.00
58.80 68.20 90.21 117.71 99.45

Total (Rs) 2360.30 2182.55 2036.13 1912.03 1764.52

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PROJECTED FUND FLOW

Sources Year-1 Year-2 Year-3 Year-4 Year-5

Capital a/c 0.00 0.00 0.00 0.00 0.00
Additional Capital 600.00 0.00 0.00 0.00 20.00
Change in Creditors 0.00 10.00 5.00 5.00 15.00

Secured Loans
Term Loan 1800.00 0.00 0.00 0.00 0.00
Dep. 98.50 187.15 168.44 151.59 129.25
Net Profit after dep. 7.60 12.03 33.95 67.58 116.63

Change in expenses
payable 5.00 5.00 5.00 5.00 10.00

Change in Other Long

Term Liabilities 0.00 15.00 5.00 30.00 20.00

Unsecured loans 0.00 0.00 50.00 50.00 0.00

2511.10 229.18 267.38 309.17 310.88

Fixed Assets 2400.00 0.00 0.00 0.00 0.00

Current Assets
Repayment of Loan 50.30 210.18 225.37 241.67 259.14
Change in Debtors 30.00 10.00 10.00 15.00 -5.00
Change in Other assets 23.00 1.00 11.00 10.00 -11.00
I.Tax 2.00 3.60 10.00 20.00 40.00
Drawings 0.00 6.00 10.00 20.00 30.00
2505.30 230.78 266.37 306.67 313.14

O.B. 0.00 5.80 4.20 5.21 7.71

Surplus/Deficit 5.80 -1.60 1.01 2.50 -2.26
C.B. 5.80 4.20 5.21 7.71 5.45
Signed in terms of our report on prospective financial
statements as per SAE 3400
UDIN : 21094443AAAACV2512
For I. P. ARORA & CO.
Chartered Accountants
FRN : 014939N

PLACE : KARNAL ( I. P. ARORA )

DATED : 08.03.2021 M.No.094443

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