Project Report

M/s. haritham
cafe and stationary

Promoter
Preetha thoppil(Main Promoter) 
Abhishek bhavan, santhi nagar, kazhakootam P.O,
Trivandrum
Mob: 8891901843

M/s. Haritham
PROJECT AT A GLANCE
Name of Unit : M/s. Haritham Stationary

Name of the main promter   Mrs. Preetha Thoppil

Address of the Proprietor with Abhishek Bhavan Santhi Nagar,

:
Mob No Kazhakootam P.O, 8891901843

     
Constitution of Unit : SHG

Product/Service : Café and stationary

Cost of the Project : Rs. 500000

Capital Expenditure
Working capital
Term Loan
Working Capital Loan
Promoter’s Contribution
Gov: Subsidy
Profit before tax
Break Even Point
Debt Service Coverage Ratio
Debt Equity Ratio 1st year
Power Required
Implementaton Period
Net Profit Ratio
Return on Investment
: Rs. 500000
: Rs. 0
: Rs. 475000
: Rs. 0
: Rs. 25000
  Rs. 300000
: Rs. 167365
: 54.86 %
: 2.39  
: 221.97%  
: SINGLE PHASE - 3 HP
: 15 days  
: 30.81 %
: 31.80 %

1. Introduction:
This is a proposal to set up a Cafe and Stationary store unit under self employment
scheme of Trivandrum corporation. This is a SHG concern of Mrs. Preetha thoppil,
Abhishek Bhavan, Santhi Nagar, Kazhakootam P.O. There is low no of such type of unit
 working in the locality and hence the scope of such unit is very high.

2. Promoter:
The Main Promoter Is Mrs. Preetha Thoppil, Santhi Nagar, Kazhakuttam P.O,
Trivandrum is the promoter of the unit. Other members are Anitha, Sreekutty, Anu,
Geetha Thoppil. They are hard working and belongs OBC category and average family.
They have enough knowledge and years of experience in the proposed line of activities.

3. Location:
They intends to set up Their unit at Shanti nagar, Kazhakuttam P.O. The
promoter intends to sell all types of Stationary items and cafe services. This is an ideal
location for getting enough work for her proposed activities blessed with all
infrastructure facilities.

4. Market and Scope:

The market for Stationary items is increasing in all over the state has a good
scope. The marketing of the above items will not be a problem provided the users are
made aware of the cost benefit. The promoter sells items to homes in that locality.

5. Consumable Materials:
The main consumables required for the unit is all Stationary items is available
in the market. The annual requirement of raw materials is assessed and given in the
annexure.

6. Employment:
The Unit can provide employments to 2 person directly. The annual expenditure on
labour is assessed and given in the annexure.

7. Cost of service and profitability:

The estimate of this project is on the basis of the following:
 1) The unit will function for 300 days in a year.
2) The capacity utilization has been assumed at 70% in the first year and 75%
on next year and so on.
3) The price of the raw material and services are taken at the prevailing market
rates.
4) Wages and salaries have been increased by 10% every year.
5) Repairs, insurance, telephone charge, etc., are taken at lump.
6) No contingency provision is made since the costs are taken at prevailing
market price.
7) Depreciation has been calculated on Written down Value Method.
8) Income tax has been calculated at the rate applicable to proprietary concern.

8. Cash flow statement:

A cash flow statement for a period of 5 years on the basis of the above
profitability is furnished as annexure. The cash generation is found sufficient to serve
the term obligations.

9. Projected balance sheet:

The projected balance sheet for a period of 5 years is given as an annexure.

ANNEXURE -1

MACHINERY & EQUIPMENTS

Sl
Item No Rate Amount Rs
No
1 Photocopier 1 130000 130000
2 Stationary items 1 370000 370000
        0
  G.TOTAL 500000
  TOTAL (Rounded) 500,000

ANNEXURE - 2
REQUIREMENTS OF STOCK FOR ONE MONTH (70% Capacity Utilisation)
Sl
Item Qty Unit Rate Amount
No
          0
           
           
           
Total 0

ANNEXURE- 3
MAN POWER REQUIREMENTS
Sl Monthly
Designation/Category No Amount
No. Salary
1 Workers 2 8000 16000
        0
         
  TOTAL 2 16000

OTHER EXPENSES PER MONTH

Sl
Item Amount
No
1 Power 1500
2 Rent 0
3 Office expenses 500
4 Postage & Telephone 500
5 Stationery 500
6 Travelling expenses 500
7 Miscellaneous/Marketing & Advt. 1000
  TOTAL 4500

ANNEXURE- 4
WORKING CAPITAL REQUIREMENT (One Cycle)
Sl Period in Total
Item
No days Amount
1 Stock 0 0
2 Work in Process 0 0
3 Stock of finished goods 0 0
4 Receivables 0 0
5 Working Expenses 0 0
  TOTAL 0
  Total 0

ANNEXURE - 5
REVENUE GENERATION PER MONTH (Capacity utilization 70%)
Sl
Item Qty Unit Rate Amount
No
1 Photostat and stationary item sale 1   43000 43000
          0
  TOTAL 43,000

PROJECT COST
1 Fixed Assets 500000
2 Working Capital 0
  Total 500,000
 ANNEXURE - 6
PROJECT COST DETAILS
Sl
Particulars Amount
No.
1 Land 0
2 Machinery & Equipments 500000
3 Prelim. & Pre-operative expenses 0
4 Working Capital 0
  TOTAL 500,000

MEANS OF FINANCE
Sl Capital Bank Promoter's
Particulars  
No. Amount Credit Contribution
1 Fixed Capital Investement 500000 475000 25000  
2 Working Capital 0 0 0  
  TOTAL 500,000 475,000 25,000  

Promoter contribution : Rs. 25,000

ANNEXURE - 7
ANNUAL COST OF PRODUCTION & PROFITABILITY STATEMENT
  Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
  No. of working days 300 300 300 300 300
  No.of shifts 1 1 1 1 1
  Installed Capacity (in Rs) 737143 737143 737143 737143 737143
  Capacity Utilisation 70 75 80 85 90
  Production 516000 552857 589714 626571 663429
A Sales 516000 552857 589714 626571 663429
   
B Cost of Production  
  Raw materials 0 0 0 0 0
  Wages 115200 123429 131657 139886 148114
  Salaries 76800 82286 87771 93257 98743
  Power Charges 18000 19286 20571 21857 23143
  Repairs & Maintenance 7500 8036 8571 9107 9643
  Insurance 5000 4500 4050 3645 3281
  Depreciation 50000 45000 40500 36450 32805
  Total 272500 282536 293121 304202 315728
 
C Gross Operating Profit 243500 270321 296593 322369 347700
Administrative &
D Selling expenses 36000 38571 41143 43714 46286
E Financial expenses  
  1. Interest on Term loan 40135 32805 24795 16017 6421
  2. Interest on WC loan 0 0 0 0 0
F Total of D & E 76135 71376 65938 59731 52707
G Net Operating Profit 167365 198945 230655 262638 294994
H Income Tax 0 0 0 0 0
I Sales tax 8368 9947 11533 13132 14750
J Net Profit 158997 188998 219122 249506 280244

K Withdrawals 20000 20000 20000 20000 20000

L Add Depreciation 50000 45000 40500 36450 32805
M Cash Surlpus 188997 213998 239622 265956 293049

ANNEXURE - 8
BREAK - EVEN ANALYSIS & DSCR

  Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
FIXED COST  
  Salaries 76800 82286 87771 93257 98743
  Repairs & Maintenance 7500 8036 8571 9107 9643
  Insurance 5000 4500 4050 3645 3281
  Administrative expenses 24000 25714 27429 29143 30857
  Depreciation 50000 45000 40500 36450 32805
  Interest on Term Loan 40135 32805 24795 16017 6421
  Total 203435 198341 193116 187619 181750
 
VARIABLE COST  
  Raw materials 0 0 0 0 0
  Wages 115200 123429 131657 139886 148114
  Power Charges 18000 19286 20571 21857 23143
  Selling expenses 12000 12857 13714 14571 15429
  Interest on WC loan 0 0 0 0 0
  Total 145200 155572 165943 176315 186685
 
  BEP in % of Installed Capacity 54.86 49.92 45.57 41.67 38.12

DSCR

Netprofit 158997 188998 219122 249506 280244

Depreciation 50000 45000 40500 36450 32805
A Working Capital Interest 0 0 0 0 0
Termloan Interest 40135 32805 24795 16017 6421
Total 249132 266803 284417 301973 319470
             
Termloan repayement 119100 119100 119100 119100 119100
B
Working Capital Interest 0 0 0 0 0
    119100 119100 119100 119100 119100
  DSCR=A/B 2.09 2.24 2.39 2.54 2.68

Average DSCR 2.39

ANNEXURE -9
Term Loan Repayment

Interest
Year Principle Balance Amount
@9%
Amount (in Rs.) of Principle
1st 78965 40135 396035
2nd 86295 32805 310210
3rd 94305 24795 215905
4th 103083 16017 112822
5th 112822 6421 0

Term loan
475000
interes
 
  principal t Balance
1
29775 19087 10688 455913
2
29775 19517 10258 436396
3
29775 19956 9819 416440
4
29775 20405 9370 396035
 
78965 40135  
5
29775 20864 8911 375171
6
29775 21334 8441 354307
7
29775 21803 7972 332504
8
29775 22294 7481 310210
 
86295 32805  
9
29775 22795 6980 287415
10
29775 23308 6467 264107
11
29775 23833 5942 240274
12
29775 24369 5406 215905
 
94305 24795  
13
29775 24917 4858 190988
14
29775 25478 4297 165510
15
29775 26051 3724 139459
16
29775 26637 3138 112822
  
103083 16017  
17
29775 27237 2538 85585
18
29775 27849 1926 57736
19
29775 28476 1299 29260
20
29918 29260 658 0
 
112822 6421  

Equated Monthly Installment on Term Loan =Rs 9925

ANNEXURE -10

INTEREST ON WORKING CAPITAL LOAN (9%)

Principle Interest @ Balance Amount

Year Amount (in Rs.) 9% of Principle

1st 0 0 0

2nd 0 0 0

3rd 0 0 0

4th 0 0 0

5th 0 0 0
ANNEXURE-11
CASH FLOW STATEMENT
A Source of Funds 1st year 2nd year 3rd year 4th year 5th year
  Cash accruals:-  
1 Share Capital 25000 0 0 0 0
2 Govt. Subsidy          
3 Profit before taxation 167365 198945 230655 262638 294994
4 Depreciation 50000 45000 40500 36450 32805
5 Investment allowance 0 0 0 0 0
6 Increase in long term loan 475000 0 0 0 0
8 Increase in unsecured loans 0 0 0 0 0
9 Increase in WC loan 0 0 0 0 0
10 Sale of fixed assets investmnts 0 0 0 0 0
11 Others 0 0 0 0 0
  Total 717365 243945 271155 299088 327799
   
B Disposition of Funds  
 1 Preli& Pre-op. expenses 0 0 0 0 0
2 Increase in Capital expenditure 500000 0 0 0 0
3 Increase in current assets 0 0 0 0 0
4 Decrease in long term loans 78965 86295 86295 86295 86295
5 Decrease in unsecured loans 0 0 0 0 0
7 Decrease in WC loan 0 0 0 0 0
8 Interest on Term loan to Bank 40135 32805 24795 16017 6421
9 Interest on WC loan 0 0 0 0 0
11 Taxation 8368 9947 11533 13132 14750
12 Divident on equity 0 0 0 0 0
13 Other expenses 12500 12536 12621 12752 12923
  Total 639968 141583 135244 128196 120389
C Opening balance 0 77397 179759 315670 486562
D Net surplus 77397 102362 135911 170892 207409
E Closing balance 77397 179759 315670 486562 693971
ANNEXURE -12
PROJECTED BALANCE SHEET

A Liabilities 1st year 2nd year 3rd year 4th year 5th year

1 Share capital 25000 25000 25000 25000 25000

2 Reserve & Surplus 188997 179759 315670 486562 693971

3 Long term loans 475000 396035 310210 215905 112822

4 Working Capital Loan 0 0 0 0 0

5 Other liabilities 0 0 0 0 0

688997 600794 650880 727467 831793

  Total Liabilities

             

B Assets          

1 Opening Stock 0 0 0 0 0

2 Gross Block 500000 450000 405000 364500 328050

3 Less Depreciation 50000 45000 40500 36450 32805

4 Net Block 450000 405000 364500 328050 295245

5 Investment 0 0      

6 Current assets 0 0 0 0 0
7 Cash and Bank Balance 238997 195794 286380 399417 536548

688997 600794 650880 727467 831793

  Total Assets

OTHER RATIOS
Net Profit Ratio
Net Profit 158997
Sales 516000
Net Profit Ratio 30.81 %

Return on Investment
Net Profit 158997
Capital Employed 500000
Return on Investment 31.80 %

Debt Equity Ratio

Debts
Term loan 475000
Total 475000

Equity
Share Capital 25000
 Surplus 188997
Total 213997

DER 222.0 %

CONCLUSION:
On examining the technical aspects like availability of consumables and
availability of skills and opportunity of market, it can easily be assumed that
the project is technically feasible. The income generated is enough for the
repayment of loan and for the better prospects of the unit.

Promoter