SAHARA DRINKING WATER

COST OF THE PROJECT (Rs. in Lacs)

TOTAL Term loan MARGIN

A chilling plant 2.60 2.20 0.40

B packing plant 2 No 2.40 1.80 0.60

C Lab 6.00 0.00 6.00

D R.O System 11.00 0.00 11.00

E other Assets 2.00 0.00 2.00

F Working Capital Margin 0.62 0.00 0.62

TOTAL 24.62 4.00 20.62

MEANS OF FINANCE

A FI TERM LOAN 4.00

B PROMOTERS CAPITAL 20.62

TOTAL 24.62
ESTIMATE OF COST OF PRODUCTION & PROFITABILITY
(Rs. in Lacs)
PARTICULARS I II III IV V VI
Year 2010 2011 2012 2013 2014 2015

1. Gross Receipts

i. Sale of packet bags 0.90 10.80 11.34 11.91 12.50 13.13

ii Sale of water Cans 0.12 4.32 4.54 4.76 5.00 5.25
iii Sale of chilled Cans 0.13 5.40 5.40 5.40 5.40 5.40

2. total receipts 1.15 20.52 21.28 22.07 22.90 23.78

3. Cost of Sales

i. Power & Fuel 0.11 2.05 2.13 2.21 2.29 2.38

iii. Wages 0.17 5.13 5.32 5.52 5.73 5.94

iv. Repairs & Maintenance 0.03 0.62 0.64 0.66 0.69 0.71
v. Depreciation 0.82 3.57 3.03 2.58 2.19 1.86

Total 1.14 11.37 11.12 10.97 10.90 10.90

4. Selling, General and Administrative 0.11 5.13 5.32 5.52 5.73 5.94
expenses

5 VAT - - - - - -

6. Sub Total ( 3 +4+5) 1.26 16.50 16.44 16.48 16.62 16.84

7. Operating Profit Before Interest -0.11 4.02 4.84 5.59 6.28 6.93
(2-5)
8. Interest 0.30 0.96 0.86 0.75 0.65 0.55
On term loan 0.13 0.44 0.34 0.23 0.13 0.03
On Cash credit 0.17 0.52 0.52 0.52 0.52 0.52

8. Operating Profit after Interest -0.41 3.06 3.98 4.83 5.64 6.39
( 6-7 )
9. Less: Non Operating Exp. 0.00 0.00 0.00 0.00 0.00 0.00
10. Profit Before Tax (8 - 9 ) -0.41 3.06 3.98 4.83 5.64 6.39
11. Provision for Taxes
12. Net Profit ( 10- 11 ) -0.41 3.06 3.98 4.83 5.64 6.39
15. Drawings 0.00 0.00 2.00 3.00 4.00 5.00
16. Retained Profit -0.41 3.06 1.98 1.83 1.64 1.39

As the promotor is in the status of individual and the income is less then the basic examption limits no provision for tax is calculated
 CASH FLOW STATEMENT
PARTICULARS I II III IV V VI
Year 2010 2011 2012 2013 2014 2015

A INFLOW
a Net Profit -0.11 4.02 4.84 5.59 6.28 6.93
with interest addedback
but after depreciation

b Increase in Share Capital 20.62 0.00 0.00 0.00 0.00 0.00

c Depreciation 0.82 3.57 3.03 2.58 2.19 1.86

d Increase in Long-term Loans 4.00 0.00 0.00 0.00 0.00 0.00

e Increase In cash credit 4.00 0.00 0.00 0.00 0.00 0.00

TOTAL "A" 29.33 7.59 7.87 8.17 8.47 8.80

B OUTFLOW

a Drawings 0.00 0.00 2.00 3.00 4.00 5.00

b Increase in Current Assets 2.82 6.98 1.63 0.36 0.38 0.39

c Increase in deposits 0.00 0.00 0.00 0.00 0.00 0.00

Repayment of long-term loans 0.00 0.84 0.84 0.84 0.84 0.63

d Interest 0.30 0.96 0.86 0.75 0.65 0.55

e Taxes 0.00 0.00 0.00 0.00 0.00 0.00

g Increase infixed assets 24.62 0.00 0.00 0.00 0.00 0.00

TOTAL "B" 27.73 8.78 5.33 4.95 5.86 6.57

C Opening Balance 0.00 1.59 0.40 2.95 6.16 8.77

D Net Surplus (A - B) 1.59 -1.19 2.55 3.21 2.61 2.23
E Closing Balance 1.59 0.40 2.95 6.16 8.77 10.99
PARTICULARS I II III IV V VI
Year 2010 2011 2012 2013 2014 2015

LIABILITIES:

Share Capital 20.62 20.62 20.62 20.62 20.62 20.62

Retained Earnings -0.41 2.65 4.63 6.47 8.10 9.49

Term Loan 4.00 3.16 2.32 1.47 0.63 0.00

Cash Credit 4.00 4.00 4.00 4.00 4.00 4.00

TOTAL 28.21 30.42 31.56 32.56 33.35 34.11

ASSETS:
Fixed Assets 24.62 23.79 20.23 17.19 14.61 12.42
Less: Depreciation 0.82 3.57 3.03 2.58 2.19 1.86
Net Fixed Assets 23.79 20.23 17.19 14.61 12.42 10.56

Stock
Water Cans 0.05 0.57 0.89 0.92 0.95 0.99
Water packets bags 0.03 0.57 0.59 0.61 0.64 0.66
Packing Material 0.36 3.24 3.40 3.57 3.75 3.94
receivables 0.38 3.42 3.55 3.68 3.82 3.96
Empty cans 2.00 2.00 3.00 3.00 3.00 3.00

Cash and Bank Balances 1.59 0.40 2.95 6.16 8.77 10.99

TOTAL 28.21 30.42 31.56 32.56 33.35 34.11

 0.00 0.00 0.00 0.00 0.00 0.00
PARTICULARS I II III IV V VI
Year 2010 2011 2012 2013 2014 2015

GROSS D.S.C.R. STATEMENT

Net Profit After Tax -0.41 3.06 3.98 4.83 5.64 6.39

Depreciation 0.82 3.57 3.03 2.58 2.19 1.86

Interest on Term Loan 0.13 0.44 0.34 0.23 0.13 0.03

Total Cover 0.54 7.07 7.35 7.65 7.95 8.28

Repayment of Term Loan 0.00 0.84 0.84 0.84 0.84 0.63

Interest on Term Loan 0.30 0.96 0.86 0.75 0.65 0.55

SERVICE
Total Service 0.30 1.81 1.70 1.59 1.49 1.18

Gross D.S.C.R. Ratio 1.80 3.92 4.33 4.79 5.34 7.03

Average D.S.C.R. Ratio 3.36

PARTICULARS I II III IV V VI
Year 2010 2011 2012 2013 2014 2015

NET D.S.C.R. STATEMENT

Net Profit After Tax -0.41 3.06 3.98 4.83 5.64 6.39

Depreciation 0.82 3.57 3.03 2.58 2.19 1.86

Total Cover 0.41 6.63 7.01 7.41 7.83 8.25

Service

Repayment of Term Loan 0.00 0.84 0.84 0.84 0.84 0.63

Total Service 0.00 0.84 0.84 0.84 0.84 0.63

Net D.S.C.R. Ratio 0.00 7.87 8.33 8.80 9.29 13.07

Average D.S.C.R. Ratio 5.72

 ASSUMPTION MADE IN COST OF PRODUCTION & PROFITABILITY STATEMENT
A) The installed capacity of the unit is estimated at 306000 Ltrs based on 340 working days in a year
on Three shift basis

B) The operating capacity is assumed at 75%, 75%, 75%,75%,85% and 95% for
1st, 2nd,3rd,4th and 5th year

C) Wages and salaries are based on actual manpower requirement.

D) Repairs and maintenance has been provided at Rs.0.11 lakhs from the first year and the provision is
Progressively made accordngly

F) Administration expnses is assusmed as 1% of sales in first year and 2% of the sales from
second year

G) Selling expenses are assumed at 1% of Gross sales in first yer and 3% from second year

H) Interest per annum is reckoned as follows :

On term loan @ 11.25.00%

I) Depreciation has been calculated on W.D.V method on the following basis

Nature of the asset Depreciation

as per IT act
Building 10%
Plant & Machinery 15%
Lab Equipment 15%
Other fixed Assets. 10%
Assumptions & working

YEAR 2010 2011 2012 2013 2014 2015

sale of water packets bags 2000 24000 25200 26460 27783 29172
Rate Per Bag 45 45 45 45 45 45
Receipts from bag sales 0.90 10.80 11.34 11.91 12.50 13.13

Sale Water Cans 1000 36000 37800 39690 41675 43758

Rate Per can 12 12 12 12 12 12
Receipts fromcans 0.12 4.32 4.536 4.7628 5.00094 5.250987

Sale Chilled Water Cans 500.00 21600 21600 21600 21600 21600
Rate Per can 25 25 25 25 25 25
Receipts from cans 0.13 5.40 5.40 5.40 5.40 5.40

Total receipts 1.15 20.52 21.28 22.07 22.90 23.78

a year

vision is
 CALCULATION OF INTEREST ON TERM LOAN

Total Loan 4.00 lacs

Rate of Interest 12.5
Total Repayment period 60 months
Moratorium 3 months
Net Repayment period 57 months

(Rs. In Lacs)
S.No. Opening Repay- Closing Interest Total Total
Balance ment Balance 12.50% InterestRepayment

1 4.00 0.00 4.00 0.04 January 2010

2 4.00 0.00 4.00 0.04 Feb
3 4.00 0.00 4.00 0.04 0.13 March
4 4.00 0.07 3.93 0.04 April
5 3.93 0.07 3.86 0.04 May
6 3.86 0.07 3.79 0.04 June
7 3.79 0.07 3.72 0.04 July
8 3.72 0.07 3.65 0.04 August
9 3.65 0.07 3.58 0.04 Sep
10 3.58 0.07 3.51 0.04 Oct
11 3.51 0.07 3.44 0.04 Nov
12 3.44 0.07 3.37 0.04 Dec
13 3.37 0.07 3.30 0.03 January 2011
14 3.30 0.07 3.23 0.03 Feb
15 3.23 0.07 3.16 0.03 0.44 0.84 March
16 3.16 0.07 3.09 0.03 April
17 3.09 0.07 3.02 0.03 May
18 3.02 0.07 2.95 0.03 June
19 2.95 0.07 2.88 0.03 July
20 2.88 0.07 2.81 0.03 August
21 2.81 0.07 2.74 0.03 Sep
22 2.74 0.07 2.67 0.03 Oct
23 2.67 0.07 2.60 0.03 Nov
24 2.60 0.07 2.53 0.03 Dec
25 2.53 0.07 2.46 0.03 January 2012
26 2.46 0.07 2.39 0.02 Feb
27 2.39 0.07 2.32 0.02 0.34 0.84 March
28 2.32 0.07 2.25 0.02 April
29 2.25 0.07 2.18 0.02 May
30 2.18 0.07 2.11 0.02 June
31 2.11 0.07 2.04 0.02 July
32 2.04 0.07 1.96 0.02 August
33 1.96 0.07 1.89 0.02 Sep
34 1.89 0.07 1.82 0.02 Oct
35 1.82 0.07 1.75 0.02 Nov
36 1.75 0.07 1.68 0.02 Dec
37 1.68 0.07 1.61 0.02 January 2013
38 1.61 0.07 1.54 0.02 Feb
39 1.54 0.07 1.47 0.02 0.23 0.84 March
40 1.47 0.07 1.40 0.01 April
41 1.40 0.07 1.33 0.01 May
42 1.33 0.07 1.26 0.01 June
43 1.26 0.07 1.19 0.01 July
44 1.19 0.07 1.12 0.01 August
45 1.12 0.07 1.05 0.01 Sep
46 1.05 0.07 0.98 0.01 Oct
47 0.98 0.07 0.91 0.01 Nov
48 0.91 0.07 0.84 0.01 Dec
49 0.84 0.07 0.77 0.01 January 2014
50 0.77 0.07 0.70 0.01 Feb
51 0.70 0.07 0.63 0.01 0.13 0.84 March
52 0.63 0.07 0.56 0.01 April
53 0.56 0.07 0.49 0.01 may
54 0.49 0.07 0.42 0.00 june
55 0.42 0.07 0.35 0.00 july
56 0.35 0.07 0.28 0.00 August
57 0.28 0.07 0.21 0.00 Sep
58 0.21 0.07 0.14 0.00 oct
59 0.14 0.07 0.07 0.00 nov
60 0.07 0.07 0.00 0.00 0.03 0.63 dec
 I II III IV V VI

(A) POWER & FUEL:

units 3060.00
Energy Charges per unit 3.75 0.11 0.14 0.18 0.22 0.28 0.35

Wages
Wages are based on production.

production 25 25 25 25 25 25

Rs 1.50 per meter Produced 37.5 75 75 75 75 75 #REF!

how ever it is assumed that rate per meter will be inceased to 3from 2011

DEPRECIATION

GROSS BLOCK
Land 2.60 2.60 2.60 2.60 2.60 2.60
Buildings 2.40 2.40 2.40 2.40 2.40 2.40
Plant & Machinery 6.00 6.00 6.00 6.00 6.00 6.00
Electrical Equipment 11.00 11.00 11.00 11.00 11.00 11.00
Motors 2.00 2.00 2.00 2.00 2.00 2.00
Other fixed Assets 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
24.00 24.00 24.00 24.00 24.00 24.00

OPENING W.D.V
Land 2.60 2.60 2.60 2.60 2.60 2.60
Buildings 2.40 2.28 2.05 1.85 1.66 1.50
Plant & Machinery 6.00 5.70 4.85 4.12 3.50 2.98
Electrical Equipment 11.00 10.45 8.88 7.55 6.42 5.45
Motors 2.00 1.90 1.62 1.37 1.17 0.99
Other fixed Assets 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00
24.00 22.93 19.99 17.49 15.35 13.52
Depreciation:
Land 0.00 0.00 0.00 0.00 0.00
Buildings ( 10%) 0.12 0.23 0.21 0.18 0.17 0.15
 Plant & Machinery ( 15%) 0.30 0.86 0.73 0.62 0.53 0.45
Electrical Equipment (15%) 0.55 1.57 1.33 1.13 0.96 0.82
Motors(15%) 0.10 0.29 0.24 0.21 0.18 0.15
Other fixed Assets (10%) 0.00 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00 0.00
1.07 2.94 2.51 2.14 1.83 1.56

SELLING, GENERAL & ADMINISTRATIVE EXP.

Salaries 24000.00 96000.00 96000.00 96000.00 96000.00 96000.00

Other Admin. Expesnes 0.25 0.50 1.00 2.00 4.00 8.00
Selling Expenses 0.00 0.00 0.00 0.00 0.00 0.00
24000.25 96000.50 96001.00 96002.00 96004.00 96008.00

FINANCE CHARGES: 0.00 0.00 0.00 0.00

Interest on FI Loan 0.00 0.00 0.00 0.00 0.00 0.03

Total Interest 0.00 0.00 0.00 0.00 0.00 0.03

Raw Materials:

Plastic Gitti 0.80 16000.00 864000.00 907200.00 952560.00 1000188.00 1050197.40

Plastic Dana 0.20 5000.00 252000.00 264600.00 277830.00 291721.50 306307.58
21000.00 1116000.00 1171800.00 1230390.00 1291909.50 1356504.98

.80 kg of gitti and .20 kg of dana is required to manufacture 1metre of HDFE pipe
Gitti is 20 per KG How ever it is assumed that rawmaterial cost will increase by RS 10 from year 2010-11
Dana is 25 per KG

INCOME TAX CALCULATIONS

Net Profit -0.41 3.06 3.98 4.83 5.64 6.39

0.00
Loss of previous year - -0.41 0.0000000

Net Taxable Income -0.41 2.65 3.98 4.83 5.64 6.39

Provision For Tax - 1.12 6.25 7.02 7.76 8.46

0.00
0.00
0.00

0.00

6.39
1.86

0.00

8.25
 8.25

0.51

0.00 0.00 0.00 0.00 0.00 0.51

ASSESSMENT OF WORKING CAPITAL: (Rs. In Lacs)

Particulars Days I II III IV V

2010 2011 2012 2013 2014

Empty Cans 2.00 2.00 3.00 3.00 3.00

Finished Goods 15 0.08 1.14 1.48 1.53 1.59

Bills Receivables 90 0.38 3.42 3.55 3.68 3.82
Packing materials 120 0.36 3.24 3.40 3.57 3.75

Working Capital Gap 2.46 6.56 8.02 8.21 8.41

Margin Money 0.62 1.64 2.01 2.05 2.10

1.85 4.92 6.02 6.16 6.31

Applied 4.00 4.00 4.00 4.00 4.00

As packing material is pre printed so the same is stocked required for 2 months
Empty Cans are refilling cans there fore the same as to be replaced every year
year 2010 operationa will be carried for 3 months as unit is setup in the month of january
 (Rs. In Lacs)
Cash Inflow I II III IV V VI
2011 2012 2013 2014 2015 2016

PAT -0.41 3.06 1.98 1.83 1.64 1.39

Depreciation 0.82 3.57 3.03 2.58 2.19 1.86

Pre-Op. Exp. 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL 0.41 6.63 5.01 4.41 3.83 3.25

Year Capital Benefits Net Discount Present DF Present

Outlay Benefits Factor 20% Value 57% Value

0 -24.62 0.00 -24.62 1.00 -24.62 1.00 -24.62

1 0.41 0.41 0.83 0.34 0.64 0.26
2 0.00 6.63 6.63 0.69 4.60 0.41 2.69
3 0.00 5.01 5.01 0.58 2.90 0.26 1.30
4 0.00 4.41 4.41 0.48 2.13 0.16 0.73
5 0.00 3.83 3.83 0.40 1.54 0.10 0.40
6 0.00 3.25 3.25 0.33 1.09 0.07 0.22
7 0.00 3.25 3.25 0.28 0.91 0.04 0.14
8 0.00 3.25 3.25 0.23 0.76 0.03 0.09
9 0.00 3.25 3.25 0.19 0.63 0.02 0.06
10 0.00 3.25 3.25 0.16 0.53 0.01 0.04
11 0.00 3.25 3.25 0.13 0.44 0.01 0.02
12 0.00 3.25 3.25 0.11 0.36 0.00 0.01
13 0.00 3.25 3.25 0.09 0.30 0.00 0.01
14 0.00 3.25 3.25 0.08 0.25 0.00 0.01
15 0.00 3.25 3.25 0.06 0.21 0.00 0.00

TOTAL -7.62 -18.65

Internal Rate of Return 12.01%

SENSITIVITY ANALYSIS

PARAMETER NORMAL 5% INCREASE IN R.M. 5% DECREASE IN REVENUE

DSCR 2.24 1.82 1.64

BEP( %) 40.63 49.67 54.32

IRR(%) 26.60 20.98 18.33

The unit is able to sustain 5% increase in rawmaterial prices, or 5% decrease in revenue

n revenue