DPR - Aren Capsules PVT LTD - (With DSC)

EHG CAPSULE & SOLDERS
DETAILED PROJECT REPORT

OF
AREN CAPSULES PRIVATE LIMITED

Regd. Office: E-873. Saraswati Vihar, Pitampura, NewDelhi-110034
Factory Unit: -Bari-Brahmna, Jammu, Jammu and Kashmir.
WORKS PROPOSED: To set up a plant for the manufacturing of Empty
Hard Gelatin Capsules (EHG Capsules) & Solder Sticks/Bars.
PREPARED BY:
CA Shubham Gupta
Designated Partner
O.Aggarwal &Co.
Chartered Accountants
FRN- 005755N
M.No. 539733
M.No. 539733
SHUBHAM Digitally signed by

SHUBHAM GUPTA
GUPTA Date: 2022.09.08

16:03:53 +05'30'
Contents
1. INTRODUCTION: ......................................................................................................................... 5
2. INDIAN OPERATIONS: ................................................................................................................ 6
3. BACKGROUND AND PROFILE OF DIRECTORS: ............................................................................. 7

Mr.Gian Parkash Aggarwal: ............................................................................................................................ 7
Mr.Vijay Parkash Aggarwal ............................................................................................................................ 8
Mr.Archit Aggarwal: ....................................................................................................................................... 9
Mr.Mayur Aggarwal ..................................................................................................................................... 10
Mr.Ankit Aggarwal ....................................................................................................................................... 11
4. EXECUTIVE SUMMARY OF THE PROJECT: .......................................................................................12
5. TECHNICAL DETAILS OF THE PROJECT: ..................................................................................... 14

Details of Proposed Manufacturing Product ................................................................................................. 14
Project Implementation (period from 01.10.2022 to 28.02.2024) ................................................................. 14
Capacity & Production .................................................................................................................................. 14
6. SOURCES AND APPLICATION OF FUNDS:...................................................................................15
7. LAND DETAILS: ......................................................................................................................... 16

Tentative Break-up of Possible Area: - ......................................................................................................... 16
Details of Site Layout & Construction Plan .................................................................................................. 18
8. BRIEF DETAILS OF MAJOR MANUFACTURING EQUIPMENT’S, PRODUCTION PROCESS,
MATERIAL HANDLING PROCESS, DOCUMENTATION & PREVENTIVE ACTION FOR EHG CAPSULE &
SOLDER BAR/ROD: ........................................................................................................................... 19

Technology Used: ......................................................................................................................................... 22
Possible Source of Equipment’s/ Machine Suppliers .................................................................................... 22
Preventive Measures ..................................................................................................................................... 22
Documentation: ............................................................................................................................................. 23
Production ..................................................................................................................................................... 23
Handling of raw material, packing material and finished product ................................................................ 24
Self-Inspection .............................................................................................................................................. 25
Machines to be installed for adhering to pollution norms ............................................................................. 25
9. PROCUREMENT STRAGEY FOR RAW MATERIAL AND OTHER INPUTS: ...................................... 26

Raw Material Availability and sources of procurement ................................................................................ 26
Raw Material to be used for EHG Capsules:................................................................................................. 26
Raw Material to be used for Solder Sticks/Bars:........................................................................................... 28
Page 2 of 90
10 MANUFACTURING PROCESS & FLOW CHART ............................................................................... 29
Flow Chart for manufacturing of EHG Capsules .......................................................................................... 29
Manufacturing Process for EHG Capsules .................................................................................................... 30
Flow Chart for Solder Manufacturing ........................................................................................................... 33
Manufacturing Process for Solder Bars/Sticks .............................................................................................. 34
11. INFRASTRUCTURE REQUIREMENT AND SOURCE: ...................................................................... 35

Water ............................................................................................................................................................. 35
Power ............................................................................................................................................................ 35
Building......................................................................................................................................................... 36
12. MANPOWER REQUIREMENT: .................................................................................................... 38
13. EHG CAPSULE & SOLDER BAR/ROD MARKET POTENTIAL: ........................................................ 39

Marketing of Company Products& Competition .......................................................................................... 41
Vision to Set up Manufacturing Plant in UT of J&K .................................................................................... 41
Key Features of the Scheme J& K IDS 2021: ............................................................................................... 42
SWOT Analysis ............................................................................................................................................ 43
14. QUALITY MANAGEMENT SYSTEMS: ......................................................................................... 45

Practices ........................................................................................................................................................ 45
Training ......................................................................................................................................................... 45
Medical examination ..................................................................................................................................... 46
Personal hygiene ........................................................................................................................................... 46
15. FINANCIAL ANALYSIS: .............................................................................................................. 47

Total Cost of the Project ............................................................................................................................... 47
Scheme of Finance ........................................................................................................................................ 48
Land and Site Development Work ................................................................................................................ 49
Building and Other Civil Work ..................................................................................................................... 50
Plant and Machinery ..................................................................................................................................... 51
Preliminary and Pre-Operative ...................................................................................................................... 52
Contingencies ................................................................................................................................................ 53
Plant and Machinery Details: ........................................................................................................................ 54
Other Plant and Machinery Details: .............................................................................................................. 58
Depreciation .................................................................................................................................................. 63
Term Loan ..................................................................................................................................................... 66
Estimation of Production and Sales .............................................................................................................. 68
Power Cost .................................................................................................................................................... 69
Working Capital Estimates ........................................................................................................................... 70
Cost of Production ........................................................................................................................................ 71
Page 3 of 90
Profitability Statement .................................................................................................................................. 72
Tax Calculation ............................................................................................................................................. 74
Debt Service Coverage Ratio ........................................................................................................................ 75
Cash-Flow Statement .................................................................................................................................... 77
Projected Balance Sheet ................................................................................................................................ 79
Pay Back Period ............................................................................................................................................ 80
Internal Rate of Return .................................................................................................................................. 81
Debt Equity Ratio .......................................................................................................................................... 82
Ratio Analysis ............................................................................................................................................... 83
Assumptions for Profitability for Manufacturing of EHG Capsules & Solder Bars/Sticks .......................... 84
Page 4 of 90
1. INTRODUCTION:
M/s AREN CAPSULES PRIVATE LIMITED is a Private Limited Company having

ambition to be pioneer in manufacturing of Capsules and Solder Sticks/Bars. We are
professionally sound to deliver quality products for the service of mankind. A
competent management team of dedicated professionals supports this endeavour.
There will be a personal guidance of Directors who have sufficient experience to run
successfully the EHG Capsules and Solders Manufacturing Business. The Directors
are currently running successful businesses in various sectors like pharmaceutical,
FMCG, PCB and other related fields since last 15 years. Therefore, the promoters
have decided to set up their capsules and solder manufacturing plant in the fiscal
benefit area of Jammu & Kashmir under the new Industrial Incentive Policy of
Government of India for diversification and inculcating new domains in their business
operations. The proposed product will be Empty Hard Gelatine Capsules (EHG
Capsules) and Solder (an input to the electronics industry). The unit is proposed to set
up at Bari-Brahmna which is the most sought after location in the whole J&K to set
up industrial units because of various logistic and local advantage which includes
availability of raw materials and industrial inputs, access to skilled labour force,
power connectivity etc. The location is linked by metalled roads. The Company will
have a well-equipped independent Quality Assurance Department and various
departments to provide adequate infrastructure necessary for manufacturing of quality
Capsules, Solder Sticks/Bars. The registered office of the company is situated at E-
873, Saraswati Vihar, Pitampura New Delhi-110034. The Certificate of Incorporation
Number of the company is U31100DL2022PTC392721. The unit shall be
manufacturing products under licenses from Food and Drug Administration UT of
Jammu & Kashmir.
Page 5 of 90
2. INDIAN OPERATIONS:
The company presently aspires to have manufacturing operation in India only under
“Make in India” goal and will be engaged in the business of manufacture of Capsules
and Solder Sticks/Bars for large and medium sized customers as an industrial input/
raw material to their industry. The Group will have its manufacturing plant at Bari-
Brahmna, Jammu, Jammu and Kashmir for manufacturing of Capsules and Solder
Sticks/Bars. In future Company desires to be available in pan India.
Page 6 of 90
3. BACKGROUND AND PROFILE OF DIRECTORS:
Mr.Gian Parkash Aggarwal:
Name of the Director Mr. Gian Parkash Aggarwal
Father’s Name Sh. Om Parkash Aggarwal
Address E-873, Saraswati Vihar, Pitampura, New Delhi-

110034
DOB 24-12-1963
Designation Director
Qualification Under Graduate
Email ID 2103archit@gmail.com
Mobile No. 9910069018
DIN 00017139
PAN AAHPP2294A
Aadhar Number 891206473843
Experience Diverse business Experience of approximately 40

years including manufacturing industry sectors like
pharmaceutical, automobile, cement, electronics,
FMCG, real estate etc. A true visionary &
management expert both in financial and industrial
matters. Rich industrial networking contacts.
Page 7 of 90
Mr.Vijay Parkash Aggarwal
Name of the Director Mr.Vijay Parkash Aggarwal
Father’s Name Sh. Om Parkash Aggarwal
Address 8, Harsh Vihar, Pitampura, Delhi-110034
DOB 04-09-1959
Qualification Under Graduate
Email ID vijayparkash1961@gmail.com
Mobile Number 9811064729
DIN 00044867
PAN AALPA3742J
Experience Vast Business Experience of approximately 42

years across various industry sectors. A business
entrepreneur with great vision and immense
marketing skills having successful past record.
Page 8 of 90
Mr.Archit Aggarwal:
Name of the Director Mr. Archit Aggarwal
Father’s Name Sh. Gian Parkash Aggarwal
Address E-873, Saraswati Vihar, Pitampura, New Delhi-

110034
DOB 05-10-1998
Qualification Degree in business administration from Swiss

Business School, Switzerland.
Email ID 2103archit@gmail.com
Mobile No. 9999040050
DIN 08127356
PAN AOMPA1037K
Experience Business Experience of approximately4 years

including industry experience in the field of
manufacturing and marketing of pharmaceutical
products. Young and energetic professional with
grass root level experience and advance knowledge
in the sector, acquired skills to handle any business.
Page 9 of 90
Mr.Mayur Aggarwal
Name of the Director Mr. Mayur Aggarwal
Father’s Name Sh. Vijay Parkash Aggarwal
Address 8, Harsh Vihar, Pitampura, Delhi-110034
DOB 07-08-1989
Qualification Master’s in Business Management
Email ID aggmayur@gmail.com
Mobile No. 9999807500
DIN 08176498
PAN AKCPA6865H
Experience A core professional with Master’s degree from

University of Leads (UK) combined with 11 years
of practical Industrial experience. Currently leading
a huge manufacturing group having product line
including Cable & Wires, PVC compounds, PVC
sleeves , PVC master batches etc.
Page 10 of 90
Mr.Ankit Aggarwal
Name of the Director Mr. Ankit Aggarwal
Father’s Name Sh. Chander Prakash Aggarwal
Address B-218, Lok Vihar, Pitampura, Delhi-110034
DOB 26-08-1982
Qualification Commerce Graduate
Email ID info@sacpolymers.in
Mobile No. 9868174566
DIN 09008096
PAN ADQPA9154Q
Experience Graduate from Delhi University having Business

Experience of more than 22 years. An expert in
handling production achieving the highest quality
standards, introducing successfully lean Sigma
concept in his industry. After establishing the
successful manufacturing model, Mr. Ankit took
over the Marketing wing to increase the sales
volume and market share of the company.
Page 11 of 90
4. EXECUTIVE SUMMARY OF THE PROJECT:
Name of the
Company
Constitution Private Limited
CIN Number U31100DL2022PTC392721
E-873, Saraswati Vihar, Pitampura

Registered Office
New Delhi-110034
Address
Telephone:9999807500
Email: aggmayur@gmail.com
Address of the
proposed Bari-Brahmna, Jammu, Jammu and Kashmir
manufacturing unit
Contact Number 9999807500
Email address aggmayur@gmail.com
Authorized Capital 6Crore
Paid up capital 6 Crore

Manufacturing of Empty Hard Gelatin Capsules (EHG Capsules) & Solder
Project Name
Sticks/Bars
Project cost
including working
capital 69.50Crore
Project cost 64.98Crore
excluding working
capital
Employment
223
opportunities
Incentive Zone/ Incentive Zone
Page 12 of 90
Non Incentive
Zone
GST Registration Applied
Pan No. of the

AAFCJ4724J
Company
The Company has entered an agreement to acquire 12 Kanals Land from
Pragati Packaging, a PMT unit working at Bari-Brahmna. Memorandum of
Land Owned/lease Understanding has been done. Transfer of lease will be done after Project
Approval. Hence the company has not any further Land requirement from
Government of J&K.
Page 13 of 90
5. TECHNICAL DETAILS OF THE PROJECT:
Details of Proposed Manufacturing Product
The Company has decided to manufacture Empty Hard Gelatin Capsules (EHG Capsules) &
Solder Sticks/Bars.
Project Implementation (period from 01.10.2022 to 28.02.2024)

The Detailed Implementation schedule of proposed project is as such:
Activity -1 Procurement and Possession of Land: MOU on transfer of Land Lease

Agreement Done, Official transfer will be done immediately after approval of the project.
Activity-2 Construction of Building & Machine order : 01.01.2023 to 30.11.2023
Activity-3 Installation of Machine : 01.12.2023 to 31.01.2024
Activity-4 Initial Training and Documentation : 01.02.2024 to 28.02.2024
Activity-5 Commercial Production : 01.03.2024
Capacity & Production

Particulars Product Units Capacity per Annum
Capsules Number 720 Cr
Solder Bars/Sticks Kgs 187500 Kgs
Page 14 of 90
6. SOURCES AND APPLICATION OF FUNDS:
Means of Finance
₹ Crore
S. No. Description Promoter’s Term Loan Working Total

Contribution Capital
from Bank
1 Land and Site Development ₹ 2.50 ₹ 0.00 ₹ 2.50
2 Building and other civil works ₹ 3.48 ₹ 8.11 ₹ 11.59
3 Plant and Machinery ₹ 14.74 ₹ 27.31 ₹ 42.05
4 Other Fixed Assets ₹ 0.36 ₹ 0.84 ₹ 1.20
5 Pre-operative Expenses ₹ 1.72 ₹ 4.02 ₹ 5.75
6 Contingenciesn ₹ 0.57 ₹ 1.32 ₹ 1.89
Sub-Total ₹ 23.37 ₹ 41.61 ₹ 0.00 ₹ 64.98
7 Working Capital ₹ 1.13 ₹ 3.39 ₹ 13.57 ₹ 18.10
Grand Total ₹ 24.50 ₹ 45.00 ₹ 13.57 ₹ 83.07
₹ 69.50
Page 15 of 90
7. LAND DETAILS:
Plot Area : 12 Kanals
Location : Bari-Brahmna, Jammu, Jammu and Kashmir
The Company has entered an agreement to acquire 12 Kanals Land from Pragati Packaging, a
PMT unit working at Bari-Brahmna. Memorandum of Understanding has been done. Transfer
of lease will be done after Project Approval. Hence the company has not any further Land
requirement from Government of J&K. Industrial land owner to transfer the lease deed
legally through SIDCO after the project is approved officially. The nearest Town is Jammu,
which is 13.4 Kms away from the factory. The nearest railway station is at Jammu, which is
10.9 Kms away from factory. Nearest airport is at Jammu, 10.8 Kms away from factory,
Tentative Break-up of Possible Area: -

SR. NO. PLOT 12 Kanals
CAPSULE BLOCK
1. Main Building – Production Area 40,000 Sqft
2. Ware House- RM / FM / FG Stores 35,000 Sqft
3. Quality Control and Admin 9,710 Sqft
4. Utility 12,000 Sqft
SOLDER BLOCK
1. Shed 6650 Sqft.
Page 16 of 90
COMMON AREA
1. Open Area (Inc. Greenery, Road Etc.) 28,656 Sqft.
Page 17 of 90
Details of Site Layout & Construction Plan
Page 18 of 90
8. BRIEF DETAILS OF MAJOR MANUFACTURING
EQUIPMENT’S, PRODUCTION PROCESS,
MATERIAL HANDLING PROCESS,
DOCUMENTATION & PREVENTIVE ACTION FOR
EHG CAPSULE & SOLDER BAR/ROD:
EHG Capsules Manufacturing Department is equipped with various kind of machine, out
of which, some machines primarily used machines are High Speed Hard Shell Capsule
Machine with Pin Bars, Air Compressor, AHUs, Vibratory Sorter, Camera Sorting
Machine, Capsule Printing Machines – Circular etc. Solder Manufacturing Section
includes Solder Melting Furnace, Solder Bar Casting Machines etc.
High Speed Hard Shell Capsule Machine
Page 19 of 90
Circular Capsule Printing Machine
Camera Sorting Machine
Page 20 of 90
Solder Bar Casting Machine
Solder Melting Furnace
Quality Control department is equipped with LAB Viscometer, UV spectrophotometer,

HPLC, dissolution test apparatus, Karl Fischer Apparatus, Polari meter, Refract meter, micro
and sterility test equipment’s etc.
Utility section has DG set, Water Treatment Plant, ETP/STP plant etc.
Page 21 of 90
Technology Used:
Gelatin capsule is the most general form when it comes to taking medicine/supplements or
vitamins. Gelatin is considered to be a type of protein that is utilized to prepare capsules,
which gives calculated quantities of products. The quality gelatin used in our hard gelatin
capsules (EHG Capsules) is got during the dispensation of collagen, a protein collected from
different amino acids. It is becoming more popular in current days as people are now more
health alert and aware of the health benefits of all-natural herbs.
Possible Source of Equipment’s/ Machine Suppliers

The company has proposed to procure required machinery mostly from domestic supplier
since presently almost most equipment’s for setting up manufacturing plant for Empty Hard
Gelatin Capsules (EHG Capsules) & Solder Rod/Bar are available in India. Some Machinery
will be imported as well.
Preventive Measures
There is a preventive maintenance program for the machines, utilities and requirements
according to their usage and records and registers will be maintained incorporating various
details carried out in preventive maintenance, parts replaced, services etc. A part from
preventive maintenance there is a system for repairs and breakdowns which is attended by
qualified team of supervisors and technicians under the maintenance and engineering
department.
Service contracts shall be given for certain machines and equipment for preventive
maintenance.
Manufacturing and testing activities will be carried out as a mandatory step to pass to the next
process in all kinds of products. All departments will be well trained, aligned andwell
equipped to carry out manufacturing of product according to the prescribed standards.
All the gauges, devices, alarms that form a part of major of critical equipment will be
routinely tested and calibrated to ensure them failsafe. There are SOP's for each maintenance
operation and function. Records of maintenance will be maintained.
Page 22 of 90
The measuring, weighing, recording and control equipment are of appropriate range and
precision. They are routinely calibrated as per written SOPs in case of in-house calibration or
sent outside for external calibration. Frequency and schedule of calibration is followed as per
calibration calendar.
Wherever computers are deployed, they are being used for carrying out routine work such as
maintenance of receipt, issue of material, Quality Control specification, BMR(Batch
Manufacturing Record), and release of raw material, packing material and finished product.
In case of PLC (Programmable Logical Control) based system, adequacy is supported by
carrying out challenge tests.
Documentation:
Documentation is an integral part of our Quality Assurance System and covers every aspect
of GMP (Good Manufacturing Practice). A separate, designated documentation team is
responsible for the documentation compliance program as per the required manufacturing and
marketing authorizations. The document control system is comprehensively defined. SOPs
for drafting of Standard Operating Procedure are designed as per GMP. The documents are
governed by a Document Change Control Standard Operating Procedure and the document is
changed with prior authorization only. It is ensured that the current version of the document
is in use and obsolete documents are withdrawn from user areas and stored with QA for
reference purpose and is not accessible to anybody. All the documents are reviewed at a pre-
specified intervals and any inadvertent use of documents is prevented. Where the documents
are stored on a computer, they are protected by means of a password and the authenticity is
maintained.
Production
All the production operations are carried out in accordance with written operating procedures
and products are manufactured according to the Master Records. In case of any deviations
with respect to the process, materials and specifications, authorizations are obtained from
designated persons and records are kept thereof. In-process QC ensures compliance of
procedures, systems and records for each stage of manufacturing and these records form part
Page 23 of 90
of BMR. Reconciliation of material and yield is also carried out to avoid any discrepancies
and ensure compliance of quality norms at each stage.
Entry to the classified areas is restricted to the authorized persons and with dress code. The
various systems, controls and procedures that contribute to manufacture quality products are
air handling system, men and material flow, air locks, air changes, controlled humidity and
temperature, line clearance, equipment cleaning, which forms an important part from the
stage of receipt of the material right up to the dispatch of the finished product. For further
elaboration of process, refer process flow charts in Point No 10.
Handling of raw material, packing material and finished product

The stores department receives raw material and packing material. Clean-up is done as per
laid down procedure, and then staged in the quarantine area separately. Sampling is carried
out under reverse laminar. The materials are used for production, only after release from QC
and staged separately. There is separate area for staging of rejected material located near the
entry point and they are disposed-off in the shortest possible time. All the raw materials and
packing materials at various stages are stored in the separate areas as provided for such
materials and have status labels, indicating complete details. The materials are issued to the
production with proper authorization and the semi-finished materials are transferred to
various stages of their operations only after clearance from IPQC (In Process Quality
Control) and by changing status label.
The finished product is transferred to FG Stores through a transfer note and the QA Dept.,
after having verified the entire batch manufacturing records, QC & IPQC records and
reconciliation records, release the batch for onward dispatch to various places.
The entire validation activity is carried out in accordance with a pre-defined protocol. All the
critical processes and equipment are validated and the validation program includes
prospective and retrospective validation supported with revalidation in case of major changes.
All the Defined processes using specified materials and equipment are validated to show that
they are able to consistently yield a product of a required quality. Any significant
amendment to the manufacturing processes or equipment, which includes any change that
affects product quality and / or reproducibility, is revalidated and recorded. Validation team
Page 24 of 90
includes people from all the departments such as production, QC, QA, maintenance and
records of validation studies are maintained.
Self-Inspection
The internal audit team comprising experienced and senior people from various disciplines of
the factory and is carried out thrice a year. The self-inspection or internal audit covers all the
aspects under GMP and GLP (Good Laboratory Practices) in various areas of stores,
production, Quality Control, maintenance, administration, and records of the observations
and shortcomings are prepared and sent to Board for review and recommendations. The
directives given in writing on the self-inspection reports are implemented by respective
departments, which are verified for compliance by the audit team in their next audit. The
procedure of self-inspection is so well defined and documented that it supports in achieving
effective quality goals.
Machines to be installed for adhering to pollution norms

The EHG Capsules Manufacturing industry traditionally uses complex batch-type processes
in the manufacturing of capsules, although the production of specific capsules by continuous
processes is currently envisaged. Due to the diversity of these processes, it is difficult to
define a general set of waste prevention guidelines that would apply to all capsule
manufacturing unit. The most applicable methods of prevention can, however, bedelineated
for capsules manufacturing after Research and Development.
Waste streams generally arise from cleaning and sterilizing equipment, chemical spills,
rejected by-products and the processes themselves. Prevention mainly involves waste
reduction by materials substitution, process modification/optimization, waste stream
segregation and solvent waste recycling. These measures are assessed and lead to guidelines
for waste minimization methods according to the waste streams under scrutiny.
The Company will install a well-defined ETP Plant for proper controlling of Pollution norms.
The company has formulated adequate provision to installation of required machinery and
accessories like Clean Room partition, Air Filtration, ETP, STP etc. whatever is required for
Environment Impact Management.
Page 25 of 90
9. PROCUREMENT STRAGEY FOR RAW
MATERIAL AND OTHER INPUTS:
Raw Material Availability and sources of procurement
Raw materials for EHG Capsule and Solder Bars/Sticks are easily available in India. The
company will procure major portion of required material from domestic supplier either
directly from manufacturer or traders. Sometime some need based inputs will be imported
from overseas as well.
Raw Material to be used for EHG Capsules:

Hard gelatin capsule shell is composed largely of gelatin. Other than gelatin, it may contain
materials such as plasticizer, colorants, opacifying agents, and preservatives which either
enable capsule formation or improve their performance. Hard gelatin capsules also contain
12–16% water, but the water content can vary, depending on the storage conditions.
Gelatin
Gelatin is by far the most common and most well-known material used to produce hard
capsule shells. It is a generic term for a mixture of purified protein fractions obtained from
irreversible hydrolytic extraction of collagen obtained from the skin, white connective tissue,
and bones of animals.
Depending on the source of the collagen and the method of extraction, two types of gelatin
can be produced – type A gelatin and type B gelatin. Type A gelatin is made from pork skin
via acid hydrolysis and has an isoelectric point between 7.0 and 9.0. Type B gelatin is
prepared by alkaline hydrolysis of bovine bones and has an isoelectric point between 4.8 and
5.0. Because of this difference in isoelectric points, both gelatins show solubility differences
at different pH values.
Traditionally capsules may be manufactured by using both types of gelatin, but combinations
of pork skin and bone gelatin are often used to optimize shell characteristics because bone
gelatin contributes firmness, whereas pork skin gelatin contributes plasticity and clarity.
Page 26 of 90
Gelatin derived from Gelatin grade is further specified by bloom strength. This is measured
in a Bloom gelometer which determines the weight in grams that is required to depress a
standard plunger in a 6.67% w/w gel under standard conditions.
Gelatin is stable in air when dry but is subject to microbial decomposition when it becomes
moist.
Plasticizer
Plasticizers are added to gelatin to reduce the rigidity of the polymer and make it more
pliable. Common examples of plasticizers are glycerin and polyhydric alcohol. Water is also
a good plasticizer and is naturally present in the gelatin.
Colorants
Most frequently, hard gelatin capsules are colored to enhance the aesthetic properties and also
to act as a means of identifying the product. Colorants used must meet the regulatory
requirements of those countries where the product will be sold. Examples of commonly used
capsule colorants include synthetic dyes such as azo dyes and xanthene dyes. Iron oxide
pigments are also used.
Opacifying agents
Opacifiers (e.g., titanium dioxide) may be included to make clear gelatin opaque. Opaque
capsules may be employed to provide protection against light or to conceal the contents.
Preservatives
Preservatives (often parabens esters) were formerly added to hard capsules as an in-process
aid in order to prevent microbiological contamination during manufacture. Manufacturers
operating their plants to Good Manufacturing Practice (GMP) guidelines no longer use them.
In the finished capsules, the moisture levels, 12–16% w/ v, are such that the water activity
will not support bacterial growth because the moisture is too strongly bound to the gelatin
molecule.
All the above required raw materials are indigenously available in India and can be procured
regularly in more than required quantity on competitive and reasonable cheaper rates.
Page 27 of 90
Raw Material to be used for Solder Sticks/Bars:
All lead-free solder bar alloys contain mostly Tin. Lead-free industrial solders have between
95% and 99.3% Tin, with the balance either Silver, Copper, Antimony or a combination
which are available in sufficient quantity. Whereas as per the specification from the
customers, some industries use leaded Solder for which Lead shall also be used as another
raw material as per the defined ratio/requirement of the customers.
Page 28 of 90
10 MANUFACTURING PROCESS & FLOW
CHART
Flow Chart for manufacturing of EHG Capsules
Page 29 of 90
Manufacturing Process for EHG Capsules
Hard gelatin capsules are manufactured using a dip-coating method and the various stages
involved are as follows:
Step 1: Preparation of the gelatin solution (dipping solution)
A concentrated solution of gelatin is prepared by dissolving the gelatin in de-mineralized

water which has been heated to 60–70°C in jacketed pressure vessels. This solution contains
30 – 40% w/w of gelatin and is highly viscous, which causes bubbles as a result of air
entrapment. The presence of these bubbles in the final solution would yield capsules of
inconsistent weight and would also become problematic during capsule filling and upon
storage. To remove the air bubbles, a vacuum is applied to the solution; the duration of this
process varies with batch size.
Following the above steps, colorants and pigments are added to attain the desired final
capsule appearance. At this stage, other processing aids may be added, such as sodium lauryl
sulfate, to reduce surface tension. The solution viscosity is measured and adjusted as needed
with hot de-mineralized water to achieve the target specification.
The viscosity of the gelatin solution is a critical parameter as it affects the downstream
manufacturing process and plays a major role in capsule shell wall thickness. After physical,
chemical, and microbiological testing, the gelatin is released for capsule production. The
gelatin solution is then transferred to temperature-controlled tanks on the dipping machine
where it is fed continuously into the dipping dishes.
Step 2: Dip-coating the gelatin solution on to metal pins (moulds)
Capsule shells are manufactured under strict climatic conditions by dipping pairs (body and
cap) of standardized steel pins arranged in rows on metal bars into an aqueous gelatin
solution (25 – 30% w/w) maintained at about 50 ° C in a jacketed heating pan. Because the
moulds are below the gelling temperature, the gelatin begins to form a thin gelatin layer or
film on the moulds.
The rows of pins are arranged so that caps are formed on one side of the machine while
bodies are simultaneously formed on the opposite side of the machine.
Page 30 of 90
Step 3: Rotation of the dip-coated pins
Following adsorption of the gelatin solution on to the surface of the pins, the bar containing
the pins is removed and rotated several times to evenly distribute the solution around the pins,
correct gelatin distribution being critical to uniform and precise capsule wall thickness and
dome strength.
Step 4: Drying of the gelatin-coated pins
Once the gelatin is evenly distributed on the mould, a blast of cool air is used to set the
gelatin on the mould. At this point, the gelatin is dried, and the pins are then passed through
several drying stages to achieve the target moisture content.
Step 5: Stripping and trimming
After the gelatin is dried, the capsule is stripped off the mould and trimmed to the proper
length.
Step 6: Joining of the trimmed capsule shell
Once trimmed, the two halves (the cap and body) are joined to the pre-closed position using a
pre lock mechanism. At this point, printing is done if needed before packing in cartons for
shipping.
Step 7: Printing
After formation, the capsule shells can be printed to improve identification. Printing can be
achieved using one or two colours, containing information such as product name or code
number, manufacturer’s name or logo and dosage details.
Printing reduces the risk of product confusion by the numerous handlers and users of the
product including manufacturers, pharmacists, nurses, doctors, caregivers, and patients.
Page 31 of 90
Process Diagram for EHG Capsules Manufacturing
Page 32 of 90
Flow Chart for Solder Manufacturing
Mixing Raw Material Tin & Lead in

required ratio
FURNACE (for melting the

mixture to form alloy)
Stirring (with stirrer attached

to the furnace)
Pouring Liquid/melted alloy into

moulds for casting lead free or
leaded Solder sticks/bars
Quality Testing
Packing
Dispatch
Page 33 of 90
Manufacturing Process for Solder Bars/Sticks
Solder is manufactured by using Melting Furnace and Casting Method
Step 1: Preparation of raw material metals as per required ratio
Raw material metals mainly consisting of TIN and Lead are prepared in the defined ratio to
load into the high temperature Electric Furnace where the different metals melt into liquid
form.
Step 2: Stirring process to make Solder Alloy
The automatic stirrer installed along with the high temperature furnace will start after the
metals get melted to stir the metals together to form a uniform compound alloy called Solder.
Step 3: Casting Process
This solder alloy is then tapped out of the furnace under controlled conditions and transferred
to the moulds as per the design, weight and size requirement where this molten metal will
cool and solidify to form the Solder Sticks or Bars.
Finally, this casted solder bars are checked as per quality parameters before packing.
Page 34 of 90
11.INFRASTRUCTURE REQUIREMENT AND
SOURCE:
Water
Water is easily available in the area in plenty so there is no problem to arrange water either
for construction activities at site, or during the manufacturing process of EHG Capsules,
Solder Bar/Rod and other requirements to be met later. The water is supplied at various user
points by GI pipes and used for general washing, toilets, cleaning and as input for
Demineralized Water plant. The underground and overhead tanks are cleaned quarterly and
records are maintained. The testing of tap water is carried out weekly.
Water Consumption Daily (Liter)
Industry 5,000
Human Consumption 11,150
Power
The power to the unit will be supplied by Jammu Electricity Board. For this purpose,
Company is applying for sanction of a power load of 1500 KW to the Electricity Board which
will be sufficient to meet the requirement of the unit. In addition, a stand-by arrangement for
installing a D.G. Set is also proposed to be made to meet emergency need.
110.09
Power Charges
Proposed Total
Total Power required in KW(Units) - 1,500 1,500
Total Power consumption

( on 300 days & 24 hours working basis )
1500X 300 x 24 x 0.95 - ₹1,02,60,000 ₹1,02,60,000
Cost of Power from HPSEB & JKSEB
( Rs.4.50 per unit ) - ₹ 4,61,70,000 ₹4,61,70,000
Cost of power from own sources
Page 35 of 90
( Rs.11 per unit ) - ₹0
Total Power charges ( A ) ₹ 4,61,70,000 ₹4,61,70,000
Building
A complete plot of land as per details mentioned here as under is being arranged
as site for the proposed unit.
Bari-Brahmna,
Location of Factory Jammu, Jammu and
(i) Land Kashmir
12
Kanals
(ii) Area of Factory Land
Over the last one year or

so various sites have been
seen in and around on the
periphery of Jammu.
Location Advantages
(iii) Ultimately the site has
of Factory Land
been found the best
location for setting up
plant which can cater the
supply to pan India
Owner of Factory AREN Capsules Private

(iv)
Land Limited
Page 36 of 90
This site remains free
from flooding and water
logging even during the
rainy season. The annual
Seasonal Impact on average rainfall ranges
v)
Factory Land from 20” to 25” and the
temperature vary from
20°C to 40°C. In short,
the weather at this site
remains hot and dry.
This plot of factory land is a

Geological Structure of
(vi) part and parcel of plain
Factory
area.
(vii) Since the plot of land is

located in a Govt. declared
Industrial Area obviously
the land use of this plot is
Land Use & Space of Industrial and therefore, the
Factory question of obtaining
permission under section
143 of Act from the
competent authority does
not arise.
Page 37 of 90
12.MANPOWER REQUIREMENT:
The company has well versed experience in Manpower Management and enjoying well
position for having all category professional and technical manpower as required for standard
manufacturing. We have well availability of each category of manpower either be Unskilled,
Skilled, Semi-Skilled, Higher Skilled at general hiring cost which comparatively well and
having no adverse scarcity effect for hiring of manpower. The proposed plan of manpower
recruitment to set up manufacturing plant at Bari-Brahmna, J& K has been mentioned as
tabled below:
Grade Proposed Proposed Female Total

Male
Administrative Staff 15 7 22
Skilled (32 for Capsules, 3 30 5 35
for Solders)
Semi-skilled (32 for 30 5 35
Capsules, 3 for Solders)
Unskilled (66 for Capsules, 60 15 75
9 for Solders)
Maintenance Staff 10 4 14
Supervisory Staff 30 12 42
Casual employment 0 0 0
Total employment 175 48 223
Page 38 of 90
13.EHG CAPSULE & SOLDER BAR/ROD MARKET
POTENTIAL:
EHG CAPSULES: Gelatin capsule is the most general form when it comes to taking
medicine/supplements or vitamins. Gelatin is considered to be a type of protein that is
utilized to prepare capsules, which gives calculated quantities of products. The quality gelatin
used in our hard gelatin capsules (EHG Capsules) is got during the dispensation of collagen, a
protein collected from different amino acids. It is becoming more popular in current days as
people are now more health alert and aware of the health benefits of all-natural herbs.
What are EHG capsules? EHG is the abbreviation for Empty Hard Gallatin. They are quite
high in demand due to their use in widespread industrial use, e.g., food, pharmaceutical or
cosmetic. Made from a compound known as gelatin, earlier deprived out of animal waste;
these capsules are mostly consumed by pharmaceutical industries because of various reasons.
Advantages of Gelatin Capsules
The most important good thing about choosing herbal supplements in Gelatin Capsules is that
they are available at a reasonable price than vegetable capsules or Hard Shell Capsules. It is
one of the most common reasons that a buyer considers in mind when purchasing between
the two forms of capsules. There are other health and financial benefits of preferring these
capsules, which contains –
• EHG capsules are cost-effective
The main reason for their popularity is their cost-effectiveness. In view of the increasing cost
of production, every industry wants to cut down the production costs. EHG is relatively
cheaper than other materials. Hence, it is preferred.
• Easiness in filling the capsules
EHG capsules are quite easy to fill. The process requires lesser time, and you need fewer
workforces to get the work done. The separated capsules can be easily filled as per the
dosage.
• They are available in various specifications

Page 39 of 90
Every industry is different, and so are its requirements. EHG capsules are available in various
sizes, prints, colors, dimensions, and so on. Every product, that is, the EHG capsule, has the
capability of satisfying the needs well.
• Longer shelf life
EHG capsules are ideal for storage in a humidity-controlled area. They remain unaffected for
quite a long time. You do not need much maintenance. Hence, its cost of storage is less.
Longer shelf life is a popular reason behind the popularity of EHG capsules.
• EHG is an easily digestive material
EHG is an easily digestive material, which gets dissolved easily. The bioavailability of slow
soluble nutrients increases its speed of dissolving. Pure bovine Gelatin is the highest
effective. Also, it is a healthy option, and that is the reason it is suitable for the pharma
industry.
It has no taste of its own. Therefore, EHG capsules are ideal for medicines that taste bitter.
The outer cover protects from the bitterness. Therefore, they are quite useful.
• Don’t require much effort to swallow.
• Help masking the taste and odor of medicine/supplements.
SOLDER BARS: the solder bars are the most convenient form to use by the electronics
industry especially PCB manufacturing industry which is increasing with increase in PCB
requirements in almost every industry sector and products like home appliances, computers,
automobile, Defense, power appliances, automatic machines etc. Most of such industry is
available in the North especially in Himachal Pradesh, Haryana, Punjab, UP and Delhi.
Putting up a manufacturing unit in Jammu will make it convenient to serve this part of the
country making it cost effective and shorten the lead time for inventory management.
Moreover, further diversification is possible to enter into Solder Wire manufacturing which
will multiply the customer base for the manufactured product.
Page 40 of 90
Marketing of Company Products& Competition
AREN Capsules Private Limited will be engaged in the manufacture of EHG Capsule and
solder manufacturing. The competition to the company will mainly come from Natural
Capsules Limited, Healthcaps India Ltd. and some other soldering and capsule units.
However, the advantage that AREN Capsules Private Limited will have over the others is that
AREN Capsules Private Limited will only be manufacturing the products as mentioned above
with commitment, dedication and proper quality check. Further as AREN Capsules Private
Limited, plant will be new with modern technology, its products will be precision made and
enjoy a higher quality. The company will be having a fully equipped Quality Check facility
for inward as well as finished products. Most importantly, the location of the site is selected
to avail industrial incentive package declared by the government hence making it more
commercially competitive than other players.
Vision to Set up Manufacturing Plant in UT of J&K

As we are aware about recently formulated scheme by Government of India as New
Industrial Development Scheme for Jammu & Kashmir (J&K IDS, 2021) as Central Sector
Scheme for the development of Industries in the UT of Jammu & Kashmir with the financial
outlay of the proposed scheme is Rs. 28,400 crore for the scheme period 2020-21 to 2036-37.
The main purpose of the scheme is to generate employment which directly leads to the socio
economic development of the area. Considering the historic development of reorganization of
Jammu & Kashmir with effect from 31.10.2019 into UT of Jammu & Kashmir under the J&K
Reorganization Act, 2019, the present scheme is being implemented with the vision that
industry and service led development of J&K needs to be given a fresh thrust with emphasis
on job creation, skill development and sustainable development by attracting new investment
and nurturing the existing ones.
Further, The Government of India has assured to provide the following incentives scheme:
 Capital Investment Incentive at the rate of 30% in Zone A and 50% in Zone B on
investment made in Plant & Machinery (in manufacturing) or construction of building
and other durable physical assets (in service sector) is available. Units with an
investment up to Rs. 50 crores will be eligible to avail this incentive. Maximum limit
of incentive is Rs 5 crore and Rs 7.5 crore in Zone A & Zone B respectively
Page 41 of 90
 Capital Interest subvention: At the annual rate of 6% for maximum 7 years on loan
amount up to Rs. 500 crore for investment in plant and machinery (in manufacturing)
or construction of building and all other durable physical assets (in service sector).
 GST Linked Incentive: 300% of the eligible value of actual investment made in
plant and machinery (in manufacturing) or construction in building and all other
durable physical assets(in service sector) for 10 years. The amount of incentive in a
financial year will not exceed one-tenth of the total eligible amount of incentive.
 Working Capital Interest Incentive: All existing units at the annual rate of 5% for
maximum 5 years. Maximum limit of incentive is Rs 1 crore.
Key Features of the Scheme J& K IDS 2021:
 Scheme is made attractive for both smaller and larger units. Smaller units with an
investment in plant & machinery up to Rs. 50 crore will get a capital incentive up to
Rs. 7.5 crore and get capital interest subvention at the rate of 6% for maximum 7
years
 The scheme aims to take industrial development to the block level in UT of J&K,
which is first time in any Industrial Incentive Scheme of the Government of India and
attempts for a more sustained and balanced industrial growth in the entire UT
 Scheme has been simplified on the lines of ease of doing business by bringing one
major incentive- GST Linked Incentive- that will ensure less compliance burden
without compromising on transparency.
 Scheme envisages greater role of the UT of J&K in registration and implementation
of the scheme while having proper checks and balances by having an independent
audit agency before the claims are approved
 It is not a reimbursement or refund of GST but gross GST is used to measure
eligibility for industrial incentive to offset the disadvantages that the UT of J&K face
 Earlier schemes though offered a plethora of incentives. However, the overall
financial outflow was much lesser than the new scheme.
 Scheme is to bring about radical transformation in the existing industrial ecosystem of
J&K with emphasis on job creation, skill development and sustainable development
by attracting new investment and nurturing the existing ones, thereby enabling J&K to
Page 42 of 90
compete nationally with other leading industrially developed States/UTs of the
country.
 It is anticipated that the proposed scheme is likely to attract unprecedented investment
and give direct and indirect employment to about 4.5 lakh persons. Additionally,
because of the working capital interest subvention the scheme is likely to give indirect
support to about 35,000 persons.
Keeping in view of above devised fact for revenue generation and our expertise in EHG
Capsule and Solder Sticks/Bars manufacturing we will be willing to setup a unit at Bari-
Brahmna, Jammu, Jammu and Kashmir
SWOT Analysis
STRENGTHS
 The promoters are experienced in the line of business of the company and their
existing contacts and long term agreements in the process of finalization will ensure
that the finished product of the company will be sold out with minimum effort.
 The very reason of establishing this factory in the Northern part of the country is due
to huge demand for the product there and low cost of freight involved in transporting
the materials from factories located in North side of the Country. Especially a huge
no. of buyers is available in Baddi, Himachal Pradesh itself.
 The raw material required is available locally and in times of shortage can be easily
imported from the nearby areas.
 Since the project is being set up under the Industrial Incentive Scheme of the UT of
J&K, it will be much more competitive than the other players
 Since promoters have already working experience of running Pharma Industry, so
clear technical Knowhow, legal requirements, industry established practices and
customer requirements are well known thereby contributing to the success of this
project.
 Access to best human resource and experienced consultants.
WEAKNESS
 The company has to ensure that it has good marketing and collection network to
market and to realize sale proceeds, as there is a tendency in the market to delay
payments.
Page 43 of 90
However, the promoters are well experienced, (having experience of over 20 years) both in
manufacturing and marketing of the final product and have successfully handled the adverse
price and demand movements in the past. Also, since a good part of the product will be sold
to medicine manufacturers in Himachal Pradesh which has a steady demand and is averse to
price variation due to rate contracts, the Company is well prepared and does not take it as a
real weakness.
OPPORTUNITIES
 The demand for EHG Capsules to increase due to significant growth in awareness
among people for medication.
 A lot of Pharma manufacturing companies are located in North India especially in
Himachal Pradesh plus selling to sister companies, will book major capacity of the
proposed plant.
 India being World’s second largest population, opportunity in health sector is
bound to increase
 Growth in GDP and increased investment by government in healthcare+
 Availability of health insurance schemes also increase consumption pattern in
medicines and indirectly capsules
 The Company will acquire 12 Kanals of Land and is considered sufficient for future
expansion plans also.
THREATS
 The growth of similar units in the region could hamper sale projections of the
Company.
However, looking at the demand in the region the creation of excess capacity could take
almost a decade which is sufficient time for the Company to establish its brand and
credibility in the region.
Page 44 of 90
14.QUALITY MANAGEMENT SYSTEMS:
The company’s aim is to produce EHG Capsules and Solder Sticks/Bars, which comply
with requisite regulatory and in-house norms and fit for the intended use. Quality is the
key word within the organization (for employees) and outside the organization (for
suppliers / distributors). Quality is achieved through participation, commitment and
dedication of the employees. The senior management is directly involved in maintaining
the quality.
Practices
To achieve the above philosophy following are some of the practices / systems followed
by the company:
1. The raw material and packing material have stringent in-house

specifications as desired for the product and its use.
2. The finished products are released according to the standards having
stringent limits.
3. A well-defined training plan and orientation for the employees.
4. Strictly followed validation and calibration schedules.
5. A well laid down stability study program.
6. Studies on cross contamination.
7. Monitoring on HVAC (Heating, ventilation and air-conditioning) and water
system.
Training
Training is imparted on various subjects such as safety, GMP, personality development,
cleaning, validation, equipment / machinery operation, process development and regulatory
affairs. Training is a continuous activity right from induction to performance of duties.
Training is supplemented by reviewing training activities, identification of training needs and
periodic evaluation of training and records are maintained for the same. Apart from the
classroom and on the job training, employees are nominated for training programs conducted
by outside agencies for updating in the respective areas and current trends in the industry.
Page 45 of 90
Medical examination
All employees are examined by a qualified doctor before employment. All the personnel
undergo an annual health examination and are certified free from contagious and obnoxious
diseases by competent medical authority and personnel engaged in visual inspection activities
undergo eye examination twice a year. Personnel reporting for work after any illness are
certified to be free from their illness and fit to perform the duties assigned to them. The
organization houses a dispensary with an attendant during office hours and a physician as
when required. Proper records of medical examination are maintained.
Personal hygiene
Personal hygiene forms an integral part of GMP. All the personnel are trained in practices of
personal hygiene through periodic training programs and the concepts of hygiene are
reinforced through display of hygiene instructions at strategic places. The objective is to
avoid cross contamination, mix-ups and observe cleanliness. All the employees undergo
change of clothes and footwear’s and washing of hands and feet in the change room. The
factory uniforms are laundered twice a week. The sterile uniforms are washed and sterilized
in-house and are for single use. Protective gadgets are provided as per the job requirement.
The head / hair are covered by headgear.
Masks / hand gloves are compulsory for the specific jobs. All employees are checked for not
wearing rings / jewelry and are not having long hair / nails. Washrooms are provided with
soaps and napkins in toilets / bathrooms. Sterile area is provided with antiseptic, disinfectants
for feet and hands and drier for drying the hands.
The secondary gowning procedure is followed in all the production area, for which full
sleeves over gown, head gear, mask and separate shoes are provided. The secondary uniforms
are washed in house having a well installed washing Machine.
Page 46 of 90
15.FINANCIAL ANALYSIS:
Total Cost of the Project
Total cost of the Project
Sr.No. Description
₹ 2.50
1 Land and Site Development
₹ 11.59
2 Building and other civil works
₹ 42.05
3 Plant and Machinery
₹ 1.20
4 Other Fixed Assets
₹ 5.75
5 Pre-operative Expenses
₹ 1.89
6 Contingencies
₹ 64.98
Sub Total
Add margin on Working capital at 100% utilization ₹ 4.52
7
₹ 69.50
Total
Page 47 of 90
Scheme of Finance
Means of Finance
₹ Crore
S. No. Description Promoter’s Term Loan Working Total

Contribution Capital from
Bank
1 Land and Site Development ₹ 2.50 ₹ 0.00 ₹ 2.50
2 Building and other civil works ₹ 3.48 ₹ 8.11 ₹ 11.59
3 Plant and Machinery ₹ 14.74 ₹ 27.31 ₹ 42.05
4 Other Fixed Assets ₹ 0.36 ₹ 0.84 ₹ 1.20
5 Pre-operative Expenses ₹ 1.72 ₹ 4.02 ₹ 5.75
6 Contingencies ₹ 0.57 ₹ 1.32 ₹ 1.89
Sub-Total ₹ 23.37 ₹ 41.61 ₹ 0.00 ₹ 64.98
7 Working Capital ₹ 1.13 ₹ 3.39 ₹ 13.57 ₹ 18.10
Grand Total ₹ 24.50 ₹ 45.00 ₹ 13.57 ₹ 83.07
₹ 69.50
Page 48 of 90
Land and Site Development Work
S. No. Description Amount (Cr)
1 Land including fee &
Site Development including new roads, drainage, electric, earth filling etc. ₹ 2.50
Total ₹ 2.50
Page 49 of 90
Building and Other Civil Work
S. No. Equipment Details Qty (Sq. Price Amount Added Duty / Amount (Cr)
feet) Taxes / GST
1 Building to be constructed for set up EHG Capsule 96,170 ₹ 1,150 ₹11,12,16,500 Inclusive of ₹ 11.12
manufacturing plant (Works include taxes
Mason/Iron/Cement/Epoxy/ Painting/Kota Stone/Doors and
Windows/Shed/Mezzanine//Door-Windows/Ceiling
2 Building to be constructed for set up Shed for Solder 6650 ₹ 700 ₹ 46,55,000 ₹ 0.47
Manufacturing
Total ₹ 11.59
Page 50 of 90
Plant and Machinery
S. No. Equipment Details Amount Before Added Duty / Amount After
GST(Cr) Taxes / GST 18% GST (Cr)
A Main Section
As per List Annexed ₹ 36.54 ₹ 6.58 ₹ 43.12
Sub Total ₹ 36.54 ₹ 6.58 ₹ 43.12
B Other Section
As per List Attached ₹ 4.69 ₹ 0.84 ₹ 5.53
Sub Total ₹ 4.69 ₹ 0.84 ₹ 5.53
SUMMARY OF COSTS - PLANT AND MACHINERY

A Main Section ₹ 36.54 ₹ 6.58 ₹ 43.12
B Other Section ₹ 4.69 ₹ 0.84 ₹ 5.53
Net ₹ 41.23 ₹ 7.42 ₹ 48.65
Packing, Insurance and Transportation ₹ 0.82 ₹ 0.15 ₹ 0.97
GRAND TOTAL ₹ 42.05 ₹ 7.57 ₹ 49.62
We have included Amount Before GST in our Project Cost.
Page 51 of 90
Preliminary and Pre-Operative
S. No. Description Amount (Cr)
1 Preliminary Travelling, Insurance, Pre-operative, electricity etc. ₹ 0.53

2 Preliminary Salaries and Labour Costs ₹ 1.40
3 Interest ₹ 2.55
4 Trial Production Expenses ₹ 1.26
Total ₹ 5.75
Page 52 of 90
Contingencies
S. No. Description Amount
1 Provision for contingencies ₹ 1.89

Total ₹ 1.89
Page 53 of 90
Plant and Machinery Details:
Sr.No. Territory ABBREVATED MACHINE NAME Proposed Supplier Name Qty Proposed Electricity TOTAL TOTAL
Property , in HP per ELEC ELEC
Plant & Unit (IN (IN
Equipment HP) KW)
cost
(WITHOUT
GST)
1 Domestic Robocap 72, DBDS
High Speed Hard Shell Capsule Robotics Pvt. Ltd. 4 176400000 125 500
Machines 500.00
2 Domestic DBDS Robotics Pvt. Ltd.

Pin Bars 4 47940000 NA 0
-
3 Domestic Cool Tech

a) Cooling Tower - 440 TR 2 2400000 20 40
29.84
4 Domestic Citizen Industries

b) AHU Systems I Limited LS 21000000 75 300
223.80
5 Domestic Citizen Industries

AHU II Limited 1 75 75
55.95
6 Domestic
c) Ducting & Pipe Line LS 20000000 NA 0
-
Page 54 of 90
7 Domestic Safe Clean Systems
d) Partition Panels LS 20000000 NA 0
-
8 Domestic Trane Technologies

e) Chiller 380 TR 3 24768000 90 270
201.42
9 Domestic Trane Technologies

Included in
f) Booster Heater 4 25 100
AHU I 100.00
10 Domestic Vibratory Sorter DBDS Robotics Pvt Ltd 8

1120000 1.5 12
8.95
11 Domestic DBDS Robotics Pvt Ltd

ATS 8 3800000 5 40
29.84
12 Import K2 Tech China

Camera Sorting Machine 8 20000000 5 40
29.84
13 Domestic SK Technologies
Gelatin Melter - 1500 Ltrs 1 3300000 10 10
10.00
Gelatin Melter - 1500 Ltrs 1 3300000 10 10
10.00
Page 55 of 90
Gelatine Holding Tanks 16 3920000 3 48
48.00
16 Domestic DBDS Robotics Pvt Ltd /

Mixers , Blenders, Colloid Mill SK Technologies LS 5000000 25 25
18.65
17 Domestic Brookfield USA

Lab Visco meter 2 1000000 1 2
1.49
Equipment’s for Washing,
LS 1000000 10 10
Utensils and Dripping Pans 7.46

Inspection Equipment’s Sorting
- 1000000 5 5
Department 3.73

Production Gauges, Jigs, Fixtures - 1000000 0 0
-
21 Import K2 Tech China

Capsule Printing Machines –
3 2400000 5 15
Circuler 11.19
22 Domestic Blue Star

Deep freezer 1 600000 5 5
3.73
Page 56 of 90
23 Domestic Local Source
Packing & sealing machine 2 350000 5 10
7.46
24 Domestic Silcarb Recrystallized

Soldering Machine Pvt Ltd 2 18 36
20,00,000 36.00
25 Domestic FS Compressors
Air Compressor1 1 50 50
23,00,000 37.30
26 Domestic
Air Compressor2 1 50 50
8,00,000 37.30
Page 57 of 90
Other Plant and Machinery Details:
Sr.No. Territory ABBREVATED MACHINE NAME Proposed Supplier Qty Proposed ELEC/NO TOTAL TOTAL
Name Property , ELEC ELEC
Plant & (IN (IN
Equipment HP) KW)
cost
(WITHOUT
GST
Akar Lab
1 Domestic Laboratory Furniture Ahmedabad 1800000 0 0 0
Lot
Ohaus,Napco,
2 Domestic Analytical Balance. Sartorius 100000 0 0 0
1
Napco
3 Domestic Precision Balance. 175000 0 0 0
1
Labindia
4 Domestic PH Meter. 12000 0 0 0
1
Ohaus
5 Domestic Moisture Balance. 60000 0 0 0
1
6 Domestic Capsule Moisture Meter. 175000 0 0 0

1
Page 58 of 90
Index
7 Domestic Direct Reading Scale. 150000 0 0 0
1
8 Domestic Water Distilling Apparatus. 80000 0 0 0

1
Machine Fabrik,
9 Domestic Autoclave, Bench Mount. Oswald 125000 3 3 2.238
1
Thermolab
10 Domestic Incubator 70000 2 2 1.492
1
GMP
11 Domestic Laminar Flow Unit 250000 1 1 0.746
1
12 Domestic Portable Stirrer with Attachment. 10000 1 1 0.746

1
Arkey Lab ,
13 Domestic Precision Temperature Water Bath. Khera Instruments 20000 2 2 1.492
1
Shimadzu
14 Domestic Spectrophotometer. 450000 1 1 0.746
1
Mitutoyo
16 Import/Domestic Capsule Outside Diameter Gauges. LS 12000 0 0 0
Page 59 of 90
Mitutoyo
17 Domestic Capsule Measuring Instruments. LS 30000 0 0 0
Macro scintific
18 Domestic Colony Counter. 1 100000 0 0 0
Rankem, Omsons
19 Domestic Glass wares and Himedia LS 300000 0 0 0
Rankem, Omsons
20 Domestic Other Utensils and items misc LS 2500000
and Himedia
21 Domestic Engine Lathe Banka Machines 1 150000 2 2 1.492
22 Domestic Drill Press Banka Machines 1 150000 2 2 1.492
23 Domestic Bench Grinder Banka Machines 1 20000 2 2 1.492
24 Domestic Tool Truck with Tool Set. 1 25000 0 0 0
25 Domestic Working Benches. Banka Machines 1 30000 0 0 0
Page 60 of 90
Phillips Machine
26 Domestic Arbor Press. Tools India Pvt. 1 10000 0 0 0
Ltd.
Phillips Machine
27 Domestic Surface Grinder Tools India Pvt. 1 400000 2 2 1.492
Ltd.
Phillips Machine
28 Domestic Surface plate Tools India Pvt. 1 30000 0 0 0
Ltd.
29 Import/Domestic Blade fixtures - 15 Blades 1 30000 0 0 0
30 Domestic Stripper fixture 1 45000 0 0 0
31 Domestic Welding machine S.K. engineering 1 68000 0 0 4
32 Domestic R O Plant Ion Exchange 1 1500000 15 15 11.19
Power Engineering
33 Domestic Transformer 3150 KV 1 3000000 0 0 0
Stabilizer 750 KV / Stabilizers / Fittings Power Engineering

34 Domestic LS 22500000 0 0 0
etc.
35 Domestic ETP Local Source 1 2500000 15 15 11.19
Page 61 of 90
Kirloskar Cummins
36 Domestic Generator Set 750KVA 2 10000000 0 0 0
Domestic Included
37 Bore Well Local Source 1 in Building 5 5 3.73
Cost
Domestic Included
38 Lighting Philips in Building 15
Cost
Domestic
39 Miscellaneous 27
Page 62 of 90
Depreciation
SLM Method
Depreciation Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Gross Block
Land Initial Capitalisation ₹ 2.50
Add : Allocation for Pre-Operative ₹ 0.25
Add : Allocation for Contingencies ₹ 0.08
Sub-Total ₹ 2.83
Opening Balance ₹ 2.83 ₹ 2.83 ₹ 2.83 ₹ 2.83 ₹ 2.83 ₹ 2.83 ₹ 2.83 ₹ 2.83 ₹ 2.83 ₹ 2.83
Add : Additions
Less : Deletions
Closing Balance ₹ 2.83 ₹ 2.83 ₹ 2.83 ₹ 2.83 ₹ 2.83 ₹ 2.83 ₹ 2.83 ₹ 2.83 ₹ 2.83 ₹ 2.83
Building
Initial Capitalisation ₹ 11.59
Sub-Total ₹ 13.13
Opening Balance ₹ 13.13 ₹ 13.13 ₹ 13.63 ₹ 14.13 ₹ 14.63 ₹ 15.13 ₹ 15.83 ₹ 16.53 ₹ 17.23 ₹ 17.93
Add : Additions ₹ 0.50 ₹ 0.50 ₹ 0.50 ₹ 0.50 ₹ 0.70 ₹ 0.70 ₹ 0.70 ₹ 0.70 ₹ 0.80
Less : Deletions
Closing Balance ₹ 13.13 ₹ 13.63 ₹ 14.13 ₹ 14.63 ₹ 15.13 ₹ 15.83 ₹ 16.53 ₹ 17.23 ₹ 17.93 ₹ 18.73
Useful Life (yrs.) ₹ 30.00
Residual value 10.0%
Page 63 of 90
Plant & Machinery
Initial Capitalisation ₹ 42.05
Sub-Total ₹ 47.65
Opening Balance ₹ 47.65 ₹ 47.65 ₹ 50.15 ₹ 52.65 ₹ 55.15 ₹ 57.65 ₹ 60.35 ₹ 63.05 ₹ 65.75 ₹ 68.45
Add : Additions ₹ 2.50 ₹ 2.50 ₹ 2.50 ₹ 2.50 ₹ 2.70 ₹ 2.70 ₹ 2.70 ₹ 2.70 ₹ 3.00
Less : Deletions
Closing Balance ₹ 47.65 ₹ 50.15 ₹ 52.65 ₹ 55.15 ₹ 57.65 ₹ 60.35 ₹ 63.05 ₹ 65.75 ₹ 68.45 ₹ 71.45
Useful Life (yrs.) ₹ 15.00
Residual value 10.0%
Total Gross Block

Opening Balance ₹ 63.62 ₹ 63.62 ₹ 66.62 ₹ 69.62 ₹ 72.62 ₹ 75.62 ₹ 79.02 ₹ 82.42 ₹ 85.82 ₹ 89.22
Add : Additions ₹ 0.00 ₹ 3.00 ₹ 3.00 ₹ 3.00 ₹ 3.00 ₹ 3.40 ₹ 3.40 ₹ 3.40 ₹ 3.40 ₹ 3.80
Less : Deletions ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00
Closing Balance ₹ 63.62 ₹ 66.62 ₹ 69.62 ₹ 72.62 ₹ 75.62 ₹ 79.02 ₹ 82.42 ₹ 85.82 ₹ 89.22 ₹ 93.02
Depreciation Block
Opening Balance ₹ 0.00 ₹ 0.00 ₹ 3.34 ₹ 6.84 ₹ 10.50 ₹ 14.33 ₹ 18.34 ₹ 22.53 ₹ 26.90 ₹ 31.45
Building ₹ 0.00 ₹ 0.40 ₹ 0.42 ₹ 0.43 ₹ 0.45 ₹ 0.46 ₹ 0.49 ₹ 0.51 ₹ 0.53 ₹ 0.55
Plant & Machinery ₹ 0.00 ₹ 2.93 ₹ 3.08 ₹ 3.23 ₹ 3.38 ₹ 3.54 ₹ 3.70 ₹ 3.86 ₹ 4.03 ₹ 4.20
Closing Balance ₹ 0.00 ₹ 3.34 ₹ 6.84 ₹ 10.50 ₹ 14.33 ₹ 18.34 ₹ 22.53 ₹ 26.90 ₹ 31.45 ₹ 36.20
Net Block
Land ₹ 2.83 ₹ 2.83 ₹ 2.83 ₹ 2.83 ₹ 2.83 ₹ 2.83 ₹ 2.83 ₹ 2.83 ₹ 2.83 ₹ 2.83
Building ₹ 13.13 ₹ 13.23 ₹ 13.31 ₹ 13.38 ₹ 13.44 ₹ 13.67 ₹ 13.89 ₹ 14.08 ₹ 14.25 ₹ 14.50
Page 64 of 90
Plant & Machinery ₹ 47.65 ₹ 47.22 ₹ 46.64 ₹ 45.90 ₹ 45.02 ₹ 44.18 ₹ 43.17 ₹ 42.01 ₹ 40.68 ₹ 39.49
Total ₹ 63.62 ₹ 63.28 ₹ 62.78 ₹ 62.12 ₹ 61.29 ₹ 60.68 ₹ 59.89 ₹ 58.92 ₹ 57.77 ₹ 56.82
Page 65 of 90
Term Loan
Repayment Schedule of Term Loan Amount in ₹ Crore
TOTAL TERM LOAN 45.00

RATE OF INTEREST 8.00% Start Date 1-Oct-23
INSTALMENTS 96 Monthly
MORITORIUM
PERIOD 24 Months
Total Period of TL 120 Months
Year Period Opening Repayment Closing Interest Total int.
in Balance Balance
months Rs in Cr Rs in Cr Rs in Cr Rs in Cr Rs in Cr
2023 1st 6 ₹ 45.00 ₹ 0.00 ₹ 45.00 ₹ 0.90

6 ₹ 45.00 ₹ 0.00 ₹ 45.00 ₹ 0.90 ₹ 1.80
nd
2024 2 6 ₹ 45.00 ₹ 0.00 ₹ 45.00 ₹ 1.80
6 ₹ 45.00 ₹ 0.00 ₹ 45.00 ₹ 1.80 ₹ 3.60
2025 3rd 6 ₹ 45.00 ₹ 2.81 ₹ 42.19 ₹ 1.80
6 ₹ 42.19 ₹ 2.81 ₹ 39.38 ₹ 1.69 ₹ 3.49
2026 4th 6 ₹ 39.38 ₹ 2.81 ₹ 36.57 ₹ 1.58
6 ₹ 36.57 ₹ 2.81 ₹ 33.76 ₹ 1.46 ₹ 3.04
th
2027 5 6 ₹ 33.76 ₹ 2.81 ₹ 30.95 ₹ 1.35
6 ₹ 30.95 ₹ 2.81 ₹ 28.14 ₹ 1.24 ₹ 2.59
th
2028 6 6 ₹ 28.14 ₹ 2.81 ₹ 25.33 ₹ 1.13
6 ₹ 25.33 ₹ 2.81 ₹ 22.52 ₹ 1.01 ₹ 2.14
th
2029 7 6 ₹ 22.52 ₹ 2.81 ₹ 19.71 ₹ 0.90
Page 66 of 90
6 ₹ 19.71 ₹ 2.81 ₹ 16.90 ₹ 0.79 ₹ 1.69
2030 8th 6 ₹ 16.90 ₹ 2.81 ₹ 14.09 ₹ 0.68
6 ₹ 14.09 ₹ 2.81 ₹ 11.28 ₹ 0.56 ₹ 1.24
2031 9th 6 ₹ 11.28 ₹ 2.81 ₹ 8.47 ₹ 0.45
6 ₹ 8.47 ₹ 2.81 ₹ 5.66 ₹ 0.34 ₹ 0.79
th
2032 10 6 ₹ 5.66 ₹ 2.81 ₹ 2.85 ₹ 0.23
6 ₹ 2.85 ₹ 2.85 ₹ 0.01 ₹ 0.11 ₹ 0.34
th
2033 11 6 ₹ 0.01 ₹ 0.00 ₹ 0.01 ₹ 0.00
6 ₹ 0.01 ₹ 0.00 ₹ 0.01 ₹ 0.00 ₹ 0.00
Page 67 of 90
Estimation of Production and Sales
Amount
in ₹
Crore
Operational Metrics Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
No. of working days per month 25 25 25 25 25 25 25 25 25 25
No. of Days in a year 300 300 300 300 300 300 300 300 300 300
No of shifts per day 2 2 2 2 2 2 2 2 2 2
Estimated Capacity Utilization 65% 80% 85% 90% 90% 90% 90% 90% 90% 90%
Power Cost ₹ 4.14 ₹ 4.77 ₹ 4.94 ₹ 5.11 ₹ 5.18 ₹ 5.32 ₹ 5.57 ₹ 5.84 ₹ 6.22 ₹ 6.23
Sales ₹ 69.63 ₹ 80.16 ₹ 83.67 ₹ 88.05 ₹ 88.92 ₹ 93.28 ₹ 97.90 ₹102.79 ₹107.93 ₹ 113.33
Page 68 of 90
Power Cost
Particulars 1st Year 2nd Year 3rdYear 4thYear 5thYear 6th Year 7thYear 8thYear 9thYear 10thYear
Amount in Lacs ₹ 4.14 ₹ 4.77 ₹ 4.94 ₹ 5.11 ₹ 5.18 ₹ 5.32 ₹ 5.57 ₹ 5.84 ₹ 6.22 ₹ 6.23
Page 69 of 90
Working Capital Estimates
Working Capital Estimates Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Raw Material ₹ 8.08 ₹ 8.64 ₹ 9.00 ₹ 9.03 ₹ 9.06 ₹ 9.43 ₹ 9.83 ₹ 10.20 ₹ 10.64 ₹ 11.08
Stock in Process ₹ 1.49 ₹ 1.61 ₹ 1.67 ₹ 1.69 ₹ 1.69 ₹ 1.76 ₹ 1.83 ₹ 1.91 ₹ 1.99 ₹ 2.07
Stores & consumables ₹ 0.32 ₹ 0.34 ₹ 0.36 ₹ 0.36 ₹ 0.36 ₹ 0.38 ₹ 0.39 ₹ 0.41 ₹ 0.43 ₹ 0.44
Finished Goods ₹ 3.48 ₹ 4.01 ₹ 4.18 ₹ 4.40 ₹ 4.45 ₹ 4.66 ₹ 4.90 ₹ 5.14 ₹ 5.40 ₹ 5.67
Add Receivables 100% ₹ 20.89 ₹ 24.05 ₹ 25.10 ₹ 26.42 ₹ 26.68 ₹ 27.98 ₹ 29.37 ₹ 30.84 ₹ 32.38 ₹ 34.00
Sub-Total ₹ 34.25 ₹ 38.65 ₹ 40.32 ₹ 41.90 ₹ 42.23 ₹ 44.22 ₹ 46.32 ₹ 48.49 ₹ 50.83 ₹ 53.26
Less Payables 100% ₹ 16.16 ₹ 17.28 ₹ 18.01 ₹ 18.07 ₹ 18.11 ₹ 18.87 ₹ 19.65 ₹ 20.40 ₹ 21.29 ₹ 22.16
Total Working Capital ₹ 18.10 ₹ 21.37 ₹ 22.31 ₹ 23.83 ₹ 24.12 ₹ 25.35 ₹ 26.67 ₹ 28.09 ₹ 29.55 ₹ 31.10
Margin (Minimum of 25%) ₹ 4.52 ₹ 6.41 ₹ 7.81 ₹ 14.78 ₹ 20.50 ₹ 22.31 ₹ 23.73 ₹ 25.28 ₹ 26.89 ₹ 28.61
Bank Borrowing Need Based ₹ 13.57 ₹ 14.96 ₹ 14.50 ₹ 9.06 ₹ 3.62 ₹ 3.04 ₹ 2.93 ₹ 2.81 ₹ 2.66 ₹ 2.49
Interest 8.65% annually ₹ 1.17 ₹ 1.29 ₹ 1.25 ₹ 0.78 ₹ 0.31 ₹ 0.26 ₹ 0.25 ₹ 0.24 ₹ 0.23 ₹ 0.22
Page 70 of 90
Cost of Production
Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
A. Cost of Production ₹ 63.68 ₹ 68.84 ₹ 71.65 ₹ 72.27 ₹ 72.46 ₹ 75.42 ₹ 78.58 ₹ 81.66 ₹ 85.30 ₹ 88.60
B. Administrative Expenses
Administrative General Expenses ₹ 1.98 ₹ 2.16 ₹ 2.13 ₹ 2.25 ₹ 2.22 ₹ 2.33 ₹ 2.35 ₹ 2.47 ₹ 2.59 ₹ 2.72
Total [B] ₹ 1.98 ₹ 2.16 ₹ 2.13 ₹ 2.25 ₹ 2.22 ₹ 2.33 ₹ 2.35 ₹ 2.47 ₹ 2.59 ₹ 2.72
C. Total Cost A+B ₹ 65.66 ₹ 71.01 ₹ 73.79 ₹ 74.51 ₹ 74.69 ₹ 77.75 ₹ 80.93 ₹ 84.13 ₹ 87.89 ₹ 91.32
Page 71 of 90
Profitability Statement
Profitability Statement Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
A. Cost of Production ₹ 63.68 ₹ 68.84 ₹ 71.65 ₹ 72.27 ₹ 72.46 ₹ 75.42 ₹ 78.58 ₹ 81.66 ₹ 85.30 ₹ 88.60
B. Administrative Expenses
Administrative General Expenses ₹ 1.98 ₹ 2.16 ₹ 2.13 ₹ 2.25 ₹ 2.22 ₹ 2.33 ₹ 2.35 ₹ 2.47 ₹ 2.59 ₹ 2.72
Total [B] ₹ 1.98 ₹ 2.16 ₹ 2.13 ₹ 2.25 ₹ 2.22 ₹ 2.33 ₹ 2.35 ₹ 2.47 ₹ 2.59 ₹ 2.72
C. Total Cost A+B ₹ 65.66 ₹ 71.01 ₹ 73.79 ₹ 74.51 ₹ 74.69 ₹ 77.75 ₹ 80.93 ₹ 84.13 ₹ 87.89 ₹ 91.32
D. Sales ₹ 69.63 ₹ 80.16 ₹ 83.67 ₹ 88.05 ₹ 88.92 ₹ 93.28 ₹ 97.90 ₹ 102.79 ₹ 107.93 ₹ 113.33
Total [D] ₹ 69.63 ₹ 80.16 ₹ 83.67 ₹ 88.05 ₹ 88.92 ₹ 93.28 ₹ 97.90 ₹ 102.79 ₹ 107.93 ₹ 113.33
Other Operating Income ₹ 11.25 ₹ 11.90 ₹ 11.86 ₹ 11.69 ₹ 11.53 ₹ 11.37 ₹ 11.21 ₹ 10.59 ₹ 10.59 ₹ 10.59
E. Gross profit before interest and depreciation ₹ 15.22

₹ 21.05 ₹ 21.74 ₹ 25.24 ₹ 25.77 ₹ 26.91 ₹ 28.18 ₹ 29.25 ₹ 30.63 ₹ 32.60
21.9% 26.3% 26.0% 28.7% 29.0% 28.8% 28.8% 28.5% 28.4% 28.8%
F. Financial Expenses
Interest on term loan ₹ 1.80 ₹ 3.60 ₹ 3.49 ₹ 3.04 ₹ 2.59 ₹ 2.14 ₹ 1.69 ₹ 1.24 ₹ 0.79 ₹ 0.34
Interest on W.C. ₹ 1.17 ₹ 1.29 ₹ 1.25 ₹ 0.78 ₹ 0.31 ₹ 0.26 ₹ 0.25 ₹ 0.24 ₹ 0.23 ₹ 0.22
Total [F] ₹ 2.97 ₹ 4.89 ₹ 4.74 ₹ 3.82 ₹ 2.90 ₹ 2.40 ₹ 1.94 ₹ 1.48 ₹ 1.02 ₹ 0.56
G. Depreciation SLM ₹ 0.00 ₹ 3.34 ₹ 3.50 ₹ 3.67 ₹ 3.83 ₹ 4.00 ₹ 4.19 ₹ 4.37 ₹ 4.55 ₹ 4.75
Non-Operating Profit ₹ 1.00 ₹ 2.00 ₹ 2.25 ₹ 2.50 ₹ 2.75 ₹ 3.00 ₹ 3.25 ₹ 3.50 ₹ 3.75 ₹ 4.00
Page 72 of 90
H. Profit Before Taxation (Operating Profit) (E - F - ₹ 13.25 ₹ 14.82 ₹ 15.75 ₹ 20.25 ₹ 21.78 ₹ 23.50 ₹ 25.30 ₹ 26.90 ₹ 28.80 ₹ 31.30
G)
I. Provision for Taxes ₹ 2.27 ₹ 2.54
₹ 2.70 ₹ 3.47 ₹ 3.74 ₹ 4.03 ₹ 4.34 ₹ 4.62 ₹ 4.94 ₹ 5.37
Dividend ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00
J. Net Profit H - I-dividend ₹ 10.97
₹ 12.28 ₹ 13.05 ₹ 16.77 ₹ 18.05 ₹ 19.47 ₹ 20.96 ₹ 22.28 ₹ 23.86 ₹ 25.93
15.8% 15.3% 15.6% 19.0% 20.3% 20.9% 21.4% 21.7% 22.1% 22.9%
K. Net Cash Accrual J + G

₹ 10.97 ₹ 15.61 ₹ 16.55 ₹ 20.44 ₹ 21.88 ₹ 23.47 ₹ 25.15 ₹ 26.65 ₹ 28.41 ₹ 30.68
L. Repayment Obligation
₹ 0.00 ₹ 0.00 ₹ 5.62 ₹ 5.62 ₹ 5.62 ₹ 5.62 ₹ 5.62 ₹ 5.62 ₹ 5.62 ₹ 5.66
EBIT
16.22 19.71 20.49 24.07 24.69 25.90 27.24 28.38 29.82 31.85
Page 73 of 90
Tax Calculation
Calculation of Income Tax Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Profit Before Tax ₹ 13.25

₹ 14.82 ₹ 15.75 ₹ 20.25 ₹ 21.78 ₹ 23.50 ₹ 25.30 ₹ 26.90 ₹ 28.80 ₹ 31.30
Gross Taxable Income

₹ 13.25 ₹ 14.82 ₹ 15.75 ₹ 20.25 ₹ 21.78 ₹ 23.50 ₹ 25.30 ₹ 26.90 ₹ 28.80 ₹ 31.30
Net Taxable Income

₹ 13.25 ₹ 14.82 ₹ 15.75 ₹ 20.25 ₹ 21.78 ₹ 23.50 ₹ 25.30 ₹ 26.90 ₹ 28.80 ₹ 31.30
Income Tax
₹ 1.99 ₹ 2.22 ₹ 2.36 ₹ 3.04 ₹ 3.27 ₹ 3.52 ₹ 3.79 ₹ 4.03 ₹ 4.32 ₹ 4.69
Surcharge
₹ 0.20 ₹ 0.22 ₹ 0.24 ₹ 0.30 ₹ 0.33 ₹ 0.35 ₹ 0.38 ₹ 0.40 ₹ 0.43 ₹ 0.47
Higher Education Cess

₹ 0.09 ₹ 0.10 ₹ 0.10 ₹ 0.13 ₹ 0.14 ₹ 0.16 ₹ 0.17 ₹ 0.18 ₹ 0.19 ₹ 0.21
Total Tax
₹ 2.27 ₹ 2.54 ₹ 2.70 ₹ 3.47 ₹ 3.74 ₹ 4.03 ₹ 4.34 ₹ 4.62 ₹ 4.94 ₹ 5.37
Effective Rate of Income Tax

17.16% 17.16% 17.16% 17.16% 17.16% 17.16% 17.16% 17.16% 17.16% 17.16%
Page 74 of 90
Debt Service Coverage Ratio
Debt Service Coverage Ratio Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Profit After Tax ₹ 10.97 ₹ 12.28 ₹ 13.05 ₹ 16.77 ₹ 18.05 ₹ 19.47 ₹ 20.96 ₹ 22.38 ₹ 23.86 ₹ 25.93
Depreciation ₹ 0.00 ₹ 3.34 ₹ 3.50 ₹ 3.67 ₹ 3.83 ₹ 4.00 ₹ 4.19 ₹ 4.37 ₹ 4.55 ₹ 4.75
Interest on Term Loan ₹ 1.80 ₹ 3.60 ₹ 3.49 ₹ 3.04 ₹ 2.59 ₹ 2.14 ₹ 1.69 ₹ 1.24 ₹ 0.79 ₹ 0.34
Total A ₹ 12.77 ₹ 19.21 ₹ 20.04 ₹ 23.48 ₹ 24.47 ₹ 25.61 ₹ 26.84 ₹ 27.89 ₹ 29.20 ₹ 31.02
Repayment Obligation ₹ 0.00 ₹ 0.00 ₹ 5.62 ₹ 5.62 ₹ 5.62 ₹ 5.62 ₹ 5.62 ₹ 5.62 ₹ 5.62 ₹ 5.66
Total B ₹ 1.80 ₹ 3.60 ₹ 9.11 ₹ 8.66 ₹ 8.21 ₹ 7.76 ₹ 7.31 ₹ 6.86 ₹ 6.41 ₹ 6.00
Gross DSCR ₹ 7.10 ₹ 5.34 ₹ 2.20 ₹ 2.71 ₹ 2.98 ₹ 3.30 ₹ 3.67 ₹ 4.07 ₹ 4.56 ₹ 5.17
Net DSCR
NA NA ₹ 2.94 ₹ 3.64 ₹ 3.89 ₹ 4.18 ₹ 4.47 ₹ 4.74 ₹ 5.06 ₹ 5.42
Average Gross DSCR ₹ 3.66

i
Average Net DSCR ₹ 4.88
Page 75 of 90
Break Even Analysis
Break Even Analysis Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
A. Total Revenue from Operations ₹ 80.88 ₹ 92.06 ₹ 95.53 ₹ 99.75 ₹ 100.45 ₹ 104.66 ₹ 109.11 ₹ 113.38 ₹118.52 ₹ 123.93
B. Variable Cost
Raw Material ₹ 53.86 ₹ 57.59 ₹ 60.03 ₹ 60.22 ₹ 60.37 ₹ 62.89 ₹ 65.50 ₹ 68.00 ₹ 70.95 ₹ 73.86
Consumable Stores ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00
Utilities [Power] ₹ 4.14 ₹ 4.77 ₹ 4.94 ₹ 5.11 ₹ 5.18 ₹ 5.32 ₹ 5.57 ₹ 5.84 ₹ 6.22 ₹ 6.23
Interest on Working Capital ₹ 1.17 ₹ 1.29 ₹ 1.25 ₹ 0.78 ₹ 0.31 ₹ 0.26 ₹ 0.25 ₹ 0.24 ₹ 0.23 ₹ 0.22
Total B ₹ 59.17 ₹ 63.65 ₹ 66.22 ₹ 66.11 ₹ 65.86 ₹ 68.47 ₹ 71.32 ₹ 74.08 ₹ 77.40 ₹ 80.31
C. Contribution (A - B) ₹ 21.71 ₹ 28.40 ₹ 29.31 ₹ 33.64 ₹ 34.60 ₹ 36.18 ₹ 37.79 ₹ 39.30 ₹ 41.12 ₹ 43.62
D. Fixed and Semi Variable Cost
Wages and Salaries ₹ 5.42 ₹ 6.17 ₹ 6.36 ₹ 6.60 ₹ 6.58 ₹ 6.86 ₹ 7.15 ₹ 7.45 ₹ 7.77 ₹ 8.15
Other Manufacturing Overheads ₹ 0.27 ₹ 0.31 ₹ 0.33 ₹ 0.33 ₹ 0.34 ₹ 0.35 ₹ 0.36 ₹ 0.37 ₹ 0.37 ₹ 0.36
Administrative Expenses ₹ 1.98 ₹ 2.16 ₹ 2.13 ₹ 2.25 ₹ 2.22 ₹ 2.33 ₹ 2.35 ₹ 2.47 ₹ 2.59 ₹ 2.72
Depreciation ₹ 0.00 ₹ 3.34 ₹ 3.50 ₹ 3.67 ₹ 3.83 ₹ 4.00 ₹ 4.19 ₹ 4.37 ₹ 4.55 ₹ 4.75
Total D ₹ 9.47 ₹ 15.58 ₹ 15.81 ₹ 15.89 ₹ 15.56 ₹ 15.69 ₹ 15.74 ₹ 15.90 ₹ 16.07 ₹ 16.32
E. Break Even Point (D / C) 44.20% 54.87% 53.94% 47.24% 44.98% 43.35% 41.65% 40.46% 39.08% 37.41%
Page 76 of 90
Cash-Flow Statement
Cash Flow Statement Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
SOURCES OF FUNDS
Profit Before Taxes ₹ 0.00 ₹ ₹14.82 ₹15.75 ₹20.25 ₹21.78 ₹23.50 ₹25.30 ₹26.90 ₹28.80 ₹31.30
13.25
Increase in Share Capital + Margin Money ₹ ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00
24.50
Depreciation ₹ 0.00 ₹ 0.00 ₹ 3.34 ₹ 3.50 ₹ 3.67 ₹ 3.83 ₹ 4.00 ₹ 4.19 ₹ 4.37 ₹ 4.55 ₹ 4.75
Increase in Term Loan ₹45.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00
Increase / (Decrease) in Bank Borrowings for Working ₹ 0.00 ₹ ₹ 1.39 ₹ -0.46 ₹ -5.45 ₹ -5.44 ₹ -0.58 ₹ -0.11 ₹ -0.12 ₹ -0.15 ₹ -0.17
Capital 13.57
Others (Subsidy) ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00
Total (Sources of Funds) ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹
69.50 26.82 19.54 18.79 18.47 20.18 26.93 29.38 31.14 33.21 35.87
DISPOSITION OF FUNDS
Increase in Capital Expenditure ₹ ₹ -1.36 ₹ 3.00 ₹ 3.00 ₹ 3.00 ₹ 3.00 ₹ 3.40 ₹ 3.40 ₹ 3.40 ₹ 3.40 ₹ 3.80
64.98
Increase in Other Non Current Assets ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00
Dividend ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00
Taxation ₹ 0.00 ₹ 2.27 ₹ 2.54 ₹ 2.70 ₹ 3.47 ₹ 3.74 ₹ 4.03 ₹ 4.34 ₹ 4.62 ₹ 4.94 ₹ 5.37
Decrease in Term Loan ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 5.62 ₹ 5.62 ₹ 5.62 ₹ 5.62 ₹ 5.62 ₹ 5.62 ₹ 5.62 ₹ 5.66
Increase in Net Current Assets ₹ 0.00 ₹ ₹ 3.27 ₹ 0.94 ₹ 1.52 ₹ 0.29 ₹ 1.23 ₹ 1.32 ₹ 1.42 ₹ 1.46 ₹ 1.55
18.10
Increase in other current assets ₹ 0.00 ₹ ₹ 1.00 ₹ 1.00 ₹ 1.00 ₹ 1.00 ₹ 1.00 ₹ 1.00 ₹ 1.00 ₹ 1.00 ₹ 1.00
21.00
Total (Disposition of Funds) ₹64.98 ₹40.01 ₹ 9.82 ₹13.26 ₹14.62 ₹13.65 ₹15.28 ₹15.68 ₹16.06 ₹16.42 ₹17.38
Page 77 of 90
Opening Balance ₹0.00 ₹4.52 ₹-8.67 ₹1.06 ₹6.59 ₹10.44 ₹16.97 ₹28.61 ₹42.31 ₹57.40 ₹74.18
Net Surplus ₹4.52 ₹- ₹9.73 ₹5.53 ₹3.85 ₹6.53 ₹11.64 ₹13.70 ₹15.09 ₹16.78 ₹18.50
13.19
Closing Balance ₹4.52 ₹-8.67 ₹1.06 ₹6.59 ₹10.44 ₹16.97 ₹28.61 ₹42.31 ₹57.40 ₹74.18 ₹92.68
Page 78 of 90
Projected Balance Sheet
Balance Sheet Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
ASSETS
Gross Assets ₹ ₹ 63.62 ₹ 66.62 ₹ 69.62 ₹ 72.62 ₹ 75.62 ₹ 79.02 ₹ 82.42 ₹ 85.82 ₹ 89.22 ₹ 93.02
64.98
Less Depreciation ₹ 0.00 ₹ 0.00 ₹ 3.34 ₹ 6.84 ₹ 10.50 ₹ 14.33 ₹ 18.34 ₹ 22.53 ₹ 26.90 ₹ 31.45 ₹ 36.20
Net Assets ₹ ₹ 63.62 ₹ 63.28 ₹ 62.78 ₹ 62.12 ₹ 61.29 ₹ 60.68 ₹ 59.89 ₹ 58.92 ₹ 57.77 ₹ 56.82
64.98
Current Assets ₹ 0.00 ₹ 34.25 ₹ 38.65 ₹ 40.32 ₹ 41.90 ₹ 42.23 ₹ 44.22 ₹ 46.32 ₹ 48.49 ₹ 50.83 ₹ 53.26
Cash & Bank Balance ₹ 4.52 ₹ -8.67 ₹ 1.06 ₹ 6.59 ₹ 10.44 ₹ 16.97 ₹ 28.61 ₹ 42.31 ₹ 57.40 ₹ 74.18 ₹ 92.68
Other Current Assets ₹ 0.00 ₹ 21.00 ₹ 22.00 ₹ 23.00 ₹ 24.00 ₹ 25.00 ₹ 26.00 ₹ 27.00 ₹ 28.00 ₹ 29.00 ₹ 30.00
Taxation ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00
Total ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹
69.50 110.21 124.99 132.69 138.45 145.49 159.51 175.52 192.81 211.79 232.76
LIABILITIES
Capital Paid up incl. Mar. Money ₹ 6.00 ₹ 6.00 ₹ 6.00 ₹ 6.00 ₹ 6.00 ₹ 6.00 ₹ 6.00 ₹ 6.00 ₹ 6.00 ₹ 6.00 ₹ 6.00
Reserves and Surplus ₹ 0.00 ₹ 10.97 ₹ 23.25 ₹ 36.30 ₹ 53.07 ₹ 71.11 ₹ 90.58 ₹ ₹ ₹ ₹
111.54 133.82 157.68 183.61
Term Loan Including loan from director and their ₹ ₹ 63.50 ₹ 63.50 ₹ 57.88 ₹ 52.26 ₹ 46.64 ₹ 41.02 ₹ 35.40 ₹ 29.78 ₹ 24.16 ₹ 18.51
relatives 63.50
Current Liabilities (excl. Working Capital ₹ 0.00 ₹ 16.16 ₹ 17.28 ₹ 18.01 ₹ 18.07 ₹ 18.11 ₹ 18.87 ₹ 19.65 ₹ 20.40 ₹ 21.29 ₹ 22.16
Borrowings)
Working Capital Borrowings ₹ 0.00 ₹ 13.57 ₹ 14.96 ₹ 14.50 ₹ 9.06 ₹ 3.62 ₹ 3.04 ₹ 2.93 ₹ 2.81 ₹ 2.66 ₹ 2.49
Total ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹
69.50 110.21 124.99 132.69 138.45 145.49 159.51 175.52 192.81 211.79 232.76
Page 79 of 90
Pay Back Period
Pay Back Period Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Total Cost of Project ₹ 64.98
Gross Operating Surplus ₹ 15.22 ₹ 21.05 ₹ 21.74 ₹ 25.24 ₹ 25.77 ₹ 26.91 ₹ 28.18 ₹ 29.25 ₹ 30.63 ₹ 32.60
Interest on Working Capital ₹ 1.17 ₹ 1.29 ₹ 1.25 ₹ 0.78 ₹ 0.31 ₹ 0.26 ₹ 0.25 ₹ 0.24 ₹ 0.23 ₹ 0.22
Subsidies ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00 ₹ 0.00
Tax ₹ 2.27 ₹ 2.54 ₹ 2.70 ₹ 3.47 ₹ 3.74 ₹ 4.03 ₹ 4.34 ₹ 4.62 ₹ 4.94 ₹ 5.37
Net Surplus ₹ 11.77 ₹ 17.21 ₹ 17.79 ₹ 20.98 ₹ 21.72 ₹ 22.61 ₹ 23.59 ₹ 24.39 ₹ 25.45 ₹ 27.02
Cumulative Surplus ₹ 11.77 ₹ 28.99 ₹ 46.77 ₹ 67.75 ₹ 89.47 ₹ 112.08 ₹ 135.66 ₹ 160.06 ₹ 185.51 ₹ 212.52
Payback Period 3.87 Years
Page 80 of 90
Internal Rate of Return
Internal Rate of Return

Total Cost of Project ₹ 64.98
Year Cash Cash Net Cash DF (%) PV DF (%) PV

Outflow Inflow Inflow 11 (IL) 12 (IH)
Const. Per. ₹ 64.98 ₹ 0.00 ₹ -64.98 ₹ 1.00 ₹ -64.98 ₹ 1.00 ₹ -64.98

1st ₹ -1.36 ₹ 15.22 ₹ 16.58 ₹ 0.90 ₹ 14.94 ₹ 0.89 ₹ 14.80
2nd ₹ 3.00 ₹ 21.05 ₹ 18.05 ₹ 0.81 ₹ 14.65 ₹ 0.80 ₹ 14.39
3rd ₹ 3.00 ₹ 21.74 ₹ 18.74 ₹ 0.73 ₹ 13.71 ₹ 0.71 ₹ 13.34
4th ₹ 3.00 ₹ 25.24 ₹ 22.24 ₹ 0.66 ₹ 14.65 ₹ 0.64 ₹ 14.13
5th ₹ 3.00 ₹ 25.77 ₹ 22.77 ₹ 0.59 ₹ 13.51 ₹ 0.57 ₹ 12.92
6th ₹ 3.40 ₹ 26.91 ₹ 23.51 ₹ 0.53 ₹ 12.57 ₹ 0.51 ₹ 11.91
7th ₹ 3.40 ₹ 28.18 ₹ 24.78 ₹ 0.48 ₹ 11.94 ₹ 0.45 ₹ 11.21
8th ₹ 3.40 ₹ 29.25 ₹ 25.85 ₹ 0.43 ₹ 11.22 ₹ 0.40 ₹ 10.44
9th ₹ 3.40 ₹ 30.63 ₹ 27.23 ₹ 0.39 ₹ 10.64 ₹ 0.36 ₹ 9.82
10th ₹ 3.80 ₹ 32.60 ₹ 28.80 ₹ 0.35 ₹ 10.14 ₹ 0.32 ₹ 9.27
Recoup of Working Capital ₹ 0.00 ₹ 28.04 ₹ 28.04 ₹ 0.35 ₹ 9.88 ₹ 0.32 ₹ 9.03
Salvage Value of Fixed Assets ₹ 0.00 ₹ 6.50 ₹ 6.50 ₹ 0.35 ₹ 2.29 ₹ 0.32 ₹ 2.09
₹ 75.14 ₹ 68.38
Page 81 of 90
Debt Equity Ratio
Debt Equity Ratio Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
A. Loans
Term Loan including loan from director and ₹ ₹ 60.23 ₹ 60.23 ₹ 60.23 ₹ ₹ ₹ ₹ ₹ ₹ ₹
their relatives 63.50 60.23 60.23 60.23 60.23 60.23 60.23 60.23
Working Capital ₹ ₹ 13.57 ₹ 14.96 ₹ 14.50 ₹ 9.06 ₹ 3.62 ₹ 3.04 ₹ 2.93 ₹ 2.81 ₹ 2.66 ₹ 2.49
0.00
Total (A) ₹ ₹ 73.80 ₹ 75.19 ₹ 74.73 ₹ ₹ ₹ ₹ ₹ ₹ ₹
63.50 69.29 63.85 63.27 63.16 63.04 62.89 62.72
B. Capital & Reserves
Own Capital - Fixed ₹ ₹ 6.00 ₹ 6.00 ₹ 6.00 ₹ 6.00 ₹ 6.00 ₹ 6.00 ₹ 6.00 ₹ 6.00 ₹ 6.00 ₹ 6.00
6.00
Reserves and Surplus ₹ ₹ 10.97 ₹ 23.25 ₹ 36.30 ₹ ₹ ₹ ₹ ₹ ₹ ₹
0.00 53.07 71.11 90.58 111.54 133.8 157.68 183.61
2
Total (B) ₹ ₹ 16.97 ₹ 29.25 ₹ 42.30 ₹59.07 ₹77.11 ₹96.58 ₹117.5 ₹139. ₹163.6 ₹s189.
6.00 4 82 8 61
DER = A / B
10.58 4.35 2.57 1.77 1.17 0.83 0.66 0.54 0.45 0.38 0.33
Page 82 of 90
Ratio Analysis
Ratio Analysis Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Capacity Utilization 65% 80% 85% 90% 90% 90% 90% 90% 90% 90%
Wages ₹ 5.42 ₹ 6.17 ₹ 6.36 ₹ 6.60 ₹ 6.58 ₹ 6.86 ₹ 7.15 ₹ 7.45 ₹ 7.77 ₹ 8.15
Sales ₹ 69.63 ₹ 80.16 ₹ 83.67 ₹ 88.05 ₹ 88.92 ₹ 93.28 ₹ 97.90 ₹ 102.79 ₹ 107.93 ₹ 113.33
Gross Profit ₹ 15.22 ₹ 21.05 ₹ 21.74 ₹ 25.24 ₹ 25.77 ₹ 26.91 ₹ 28.18 ₹ 29.25 ₹ 30.63 ₹ 32.60
Operating Profit ₹ 13.25 ₹ 14.82 ₹ 15.75 ₹ 20.25 ₹ 21.78 ₹ 23.50 ₹ 25.30 ₹ 26.90 ₹ 28.80 ₹ 31.30
Profit After Tax ₹ 10.97 ₹ 12.28 ₹ 13.05 ₹ 16.77 ₹ 18.05 ₹ 19.47 ₹ 20.96 ₹ 22.28 ₹ 23.86 ₹ 25.93
Gross Profit / Sales % 21.9% 26.3% 26.0% 28.7% 29.0% 28.8% 28.8% 28.5% 28.4% 28.8%
Net Profit / Sales % 15.8% 15.3% 15.6% 19.0% 20.3% 20.9% 21.4% 21.7% 22.1% 22.9%
Wages / Sales % 7.8% 7.7% 7.6% 7.5% 7.4% 7.4% 7.3% 7.3% 7.2% 7.2%
Operating Profit / Sales % 19.0% 18.5% 18.8% 23.0% 24.5% 25.2% 25.8% 26.2% 26.7% 27.6%
Page 83 of 90
Assumptions for Profitability for Manufacturing of EHG Capsules & Solder Bars/Sticks
Page 84 of 90
Amount in ₹ Crore (unless specifically
Major Assumptions for Detailed Project Report's Financial Statements Working stated)
Working Hours Per Day Hours 8
No of Shift Nos 3
No of Days per Annum Days 300
Commencement of Production April 2024 (Y1 Commencement on 1April 2024)
Capacity Per Annum

₹ 70.20
Capsules 5,28,33,60,000
₹ 30.00
Solders 1,84,32,00,000
₹ 100.20 15770616000.00
₹ 100.20 In Cr.
nual Capacity Utilisation (New Unit) & Corresponding Sales
FY Capacity utilization Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

EHG Capsules 65% 80% 85% 90% 90% 90% 90% 90% 90% 90%
Solders 80% 80% 80% 80% 80% 80% 80% 80% 80% 80%
Sales
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected
Sales at Bari Brahaman J&K ₹ 69.63 ₹ 80.16 ₹ 83.67 ₹ 88.05 ₹ 88.92 ₹ 93.28 ₹ 97.90 ₹ 102.79 ₹ 107.93 ₹ 113.33
₹ 69.63 ₹ 80.16 ₹ 83.67 ₹ 88.05 ₹ 88.92 ₹ 93.28 ₹ 97.90 ₹ 102.79 ₹ 107.93 ₹ 113.33
Year on Year Price Increase 1% 1% 5% 5% 6% 6% 6%
Details of Raw Material
Raw Material Include Gelatin for Capsule Block and Lead, Tin for Solder
Block
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
21.60 21.60 21.60 21.60 21.60 21.60 21.60 21.60 21.60 21.60
Gelatine,
Tin and Lead ₹ 32.26 ₹ 35.99 ₹ 38.43 ₹ 38.62 ₹ 38.77 ₹ 41.29 ₹ 43.90 ₹ 46.40 ₹ 49.35 52.26
Total ₹ 53.86 ₹ 57.59 ₹ 60.03 ₹ 60.22 ₹ 60.37 ₹ 62.89 ₹ 65.50 ₹ 68.00 ₹ 70.95 ₹ 73.86
Power & Fuel ₹ 4.14 ₹ 4.77 ₹ 4.94 ₹ 5.11 ₹ 5.18 ₹ 5.32 ₹ 5.57 ₹ 5.84 ₹ 6.22 ₹ 6.23
Annual Increase 5.9% 6.0% 5.90% 5.80% 5.82% 5.70% 5.69% 5.68% 5.76% 5.50%
Direct Labour & Wages ₹ 5.42 ₹ 6.17 ₹ 6.36 ₹ 6.60 ₹ 6.58 ₹ 6.86 ₹ 7.15 ₹ 7.45 ₹ 7.77 ₹ 8.15
Learning Curve Factor 7.8% 7.7% 7.60% 7.5% 7.4% 7.4% 7.3% 7.3% 7.2% 7.2%
Page 85 of 90
Other Manufacturing Expenses ₹ 0.27 ₹ 0.31 ₹ 0.33 ₹ 0.33 ₹ 0.34 ₹ 0.35 ₹ 0.36 ₹ 0.37 ₹ 0.37 ₹ 0.36
0.4% 0.4% 0.4% 0.4% 0.4% 0.380% 0.4% 0.360% 0.3% 0.3%
Administration Expenses ₹ 1.98 ₹ 2.16 ₹ 2.13 ₹ 2.25 ₹ 2.22 ₹ 2.33 ₹ 2.35 ₹ 2.47 ₹ 2.59 ₹ 2.72
2.8% 2.7% 2.6% 2.6% 2.5% 2.5% 2.4% 2.4% 2.4% 2.4%
Power & Fuel Requirements

111.48
Power Charges
Proposed Total
Total Power required KW ₹ 1,500 ₹ 1,500
Total Power consumption

( on 300 days & 24 hours working basis )
1500X 300 x 24 x 0.95 ₹ 1,02,60,000 ₹ 1,02,60,000
Cost of Power from HPSEB & JKSEB

( Rs.4.50 per unit ) ₹ 4,61,70,000 ₹ ₹ 4,61,70,000
Cost of power from own sources

( Rs.11 per unit ) ₹0
Total Power charges ( A ) ₹₹ 4,61,70,000 ₹₹ 4,61,70,000
Water Charges Proposed

Water Charges for processing, and human ₹0 ₹0
consumption has been estimated at 16150 Litre Daily ₹ 3,00,000 ₹ 3,00,000
Total Water Charges (B) ₹ 3,00,000 ₹ 3,00,000
Fuel Charges Proposed

Oil is required for Boiler/ Generator
Oil Requirement per day Lts 200 200
Oil Requirement per annum Lts 60,000 60,000
Oil Rate per Litre Rs. ₹ 90 ₹ 90
Fuel Cost per annum at 100% CU Rs. ₹ 54,00,000 ₹ 54,00,000
Total Power , Water & Fuel Charges ( A+B+C) ₹ 5,18,70,000 ₹ 5,18,70,000
Total Power , Water & Fuel Charges in Cr ₹ 5.19 ₹ 5.19
Page 86 of 90
Wages & Salaries
Particulars Monthly No of Amount

Salary Persons (Rs.)
Factory Supervision
- Manager Plant / Supervisors ₹ 60,000 20 ₹ 12,00,000
- Chemist and quality control Staff ₹ 35,000 22 ₹ 7,70,000
42
Workers
- Skilled Workers (Capsule) ₹ 16,000 32 ₹ 5,12,000
Skilled Workers (Solder ) ₹ 16,000 3 ₹ 48,000
- Semi-skilled workers ( Capsule ) ₹ 14,000 32 ₹ 4,48,000
Semi-Skilled Workers (Solder ) ₹ 14,000 3 ₹ 42,000
- Un-skilled workers (Capsule) ₹ 11,500 66 ₹ 7,59,000
Un- Skilled Workers (Solder ) ₹ 11,500 9 ₹ 1,03,500
- Maintenance Staff ₹ 16,000 14 ₹ 2,24,000
159
201 ₹ 41,06,500
Add 10% for Perks ₹ 4,10,650
Total Factory Wages per Month ₹ 45,17,150
Total Factory Wages per annum at Jammu( Rs. Cr) ₹5.42
Other Manufacturing Expenses

Manufacturing Expenses include Carriage , freight etc
Administration Expenses
Fixed
Administration Expenses include Repair & Maintenance, Legal & Professional Charges, Insurance etc.
Monthly No of AMOUNT
Salary Persons (Rs.)
Administrative Salaries
- Occupier 2,00,000 3 6,00,000
- Accountant/ Cashier/ store keeper 40,000 7 2,80,000
- Peon 16,000 4 64,000
- Watchman/ Timekeeper 20,000 8 1,60,000
22
Page 87 of 90
11,04,000
Add 10% for Perks 1,10,400
12,14,400
Total Adm. Salaries per Month
Total Adm. Salaries per annum (Rs. In Cr) 1.46
KMP Insurance per annum 0.10
Travelling Expenses per annum 0.12
Postage, Telephone, Telegrams etc per annum 0.06
Other Office Expenses per annum 0.24
Total Administration Expense p.a. (Rs in Cr) 1.98
Variable
Other expenses to change in proportion to change in Sales
Preliminary and Preoperative Expenses
Travelling 1 Lacs Each Months*17 Months ₹ 15,00,000

Capital Goods Erection Insurance Policy ₹ 7,00,000
Water & DG Fuel ₹ 4,50,000
Electricity 200 KWA 200*300*24*0.95@ Rs.4.50/12*17 ₹ 26,93,250
₹ 0.53
Term Loan Interest @ assumption 7.75% P.A.
from 01.10.2022 to
31.03.2023 30% of PO ₹ 45.00 ₹ 0.90
from 01.04.2023 to
31.11.2023 60% of PO ₹ 45.00 ₹ 1.20
from 01.12.2023 to
28.02.2023 10% of PO ₹ 45.00 ₹ 0.45
Total ₹ 2.55
Page 88 of 90
Salary
No. of Months 15
Employee Monthly Salary No of Persons Amount (Rs.)

Factory Supervision
Manager/ Plant Supervisors ₹ 2,00,000 1 ₹ 2,00,000
Chemist and quality control
staff ₹ 35,000 2 ₹ 70,000
Accountant ₹ 35,000 1 ₹ 35,000
4
Skilled Workers ₹ 16,000 5 ₹ 80,000
Semi Skilled Workers ₹ 14,000 10 ₹ 1,40,000
Un Skilled Workers ₹ 11,500 15 ₹ 1,72,500
Maintainence Staff ₹ 16,000 5 ₹ 80,000
Security Guard ₹ 18,000 4 ₹ 72,000
39
43 ₹ 8,49,500
₹ 84,950
₹ 9,34,450
Total ₹ 1.40
from 01.07.2022 to
30.11.2023 i.e.15 Months
Trial Production Expenses 7 days Cost of Production ₹ 1.26
Total Pre-Operative Expenses ₹ 5.75
Interest on Term Loan

Interest on Term Loan has been taken at 8.0%
Interest on Working Capital Borrowings

Interest on Working Capital Borrowings has been worked at 8.65%
Other Income i.e.DBK/FDR Intt

We are receiving Duty draw@ 1.50% on Export Revenue.
Capital Investment Incentive (CII) - Not Applicable

As per Capital Investment Policy, Unit will receive Capital
Investment Incentive @30% on Plant and Machinery values up to 5 Cr
Capital Interest Subvention (CIS)

As per Capital Investment Policy, Unit will receive Capital
Interest Incentive @6% on Interest applied to avail Term Loan
Page 89 of 90
Goods & Services Tax Linked Incentive (GSTLI)
As per Capital Investment Policy, Unit will receive Goods & Service Tax Linked Incentive 3 Times on investment put for acquisition of P&M in 10 Years
Installment.
Base for GSTLI will be Payable GST on Sales Revenue. Unit have assumed GST payable @18% on sales Revenue of Capsules and 18% on Manufacturing
of Solder Sticks and Bars
Working Capital
Raw Material 45 Days

Stock in Process 7 Days
Stores & consumables 0.50% of Cost of production
Finished Goods 15 Days
Add Receivables 100% 90 Days
Less Payables 100% 90 Days
Income Tax Assumptions

Section 115BAB Rate
Income Tax 15%
Surcharge 10%
Higher Education Cess 4%
SHUBHA Digitally signed by

SHUBHAM GUPTA
M GUPTA Date: 2022.09.08

16:04:17 +05'30'
Page 90 of 90

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EHG CAPSULE & SOLDERS

DETAILED PROJECT REPORT

AREN CAPSULES PRIVATE LIMITED

WORKS PROPOSED: To set up a plant for the manufacturing of Empty

Hard Gelatin Capsules (EHG Capsules) & Solder Sticks/Bars.

SHUBHAM Digitally signed by

GUPTA Date: 2022.09.08

2. INDIAN OPERATIONS: ................................................................................................................ 6

3. BACKGROUND AND PROFILE OF DIRECTORS: ............................................................................. 7

4. EXECUTIVE SUMMARY OF THE PROJECT: .......................................................................................12

5. TECHNICAL DETAILS OF THE PROJECT: ..................................................................................... 14

6. SOURCES AND APPLICATION OF FUNDS:...................................................................................15

7. LAND DETAILS: ......................................................................................................................... 16

8. BRIEF DETAILS OF MAJOR MANUFACTURING EQUIPMENT’S, PRODUCTION PROCESS,

SOLDER BAR/ROD: ........................................................................................................................... 19

9. PROCUREMENT STRAGEY FOR RAW MATERIAL AND OTHER INPUTS: ...................................... 26

11. INFRASTRUCTURE REQUIREMENT AND SOURCE: ...................................................................... 35

12. MANPOWER REQUIREMENT: .................................................................................................... 38

13. EHG CAPSULE & SOLDER BAR/ROD MARKET POTENTIAL: ........................................................ 39

14. QUALITY MANAGEMENT SYSTEMS: ......................................................................................... 45

15. FINANCIAL ANALYSIS: .............................................................................................................. 47

M/s AREN CAPSULES PRIVATE LIMITED is a Private Limited Company having

Father’s Name Sh. Om Parkash Aggarwal

Address E-873, Saraswati Vihar, Pitampura, New Delhi-

Qualification Under Graduate

Mobile No. 9910069018

Aadhar Number 891206473843

Experience Diverse business Experience of approximately 40

Father’s Name Sh. Om Parkash Aggarwal

Address 8, Harsh Vihar, Pitampura, Delhi-110034

Qualification Under Graduate

Mobile Number 9811064729

Aadhar Number 688471392865

Experience Vast Business Experience of approximately 42

Father’s Name Sh. Gian Parkash Aggarwal

Address E-873, Saraswati Vihar, Pitampura, New Delhi-

Qualification Degree in business administration from Swiss

Mobile No. 9999040050

Aadhar Number 626898127770

Experience Business Experience of approximately4 years

Father’s Name Sh. Vijay Parkash Aggarwal

Address 8, Harsh Vihar, Pitampura, Delhi-110034

Qualification Master’s in Business Management

Mobile No. 9999807500

Aadhar Number 677916748230

Experience A core professional with Master’s degree from

Father’s Name Sh. Chander Prakash Aggarwal

Address B-218, Lok Vihar, Pitampura, Delhi-110034

Qualification Commerce Graduate

Mobile No. 9868174566

Aadhar Number 933040262003

Experience Graduate from Delhi University having Business

CIN Number U31100DL2022PTC392721

AREN CAPSULES PRIVATE LIMITED

E-873, Saraswati Vihar, Pitampura

Email address aggmayur@gmail.com

Authorized Capital 6Crore

Paid up capital 6 Crore

GST Registration Applied

Pan No. of the

Project Implementation (period from 01.10.2022 to 28.02.2024)

Activity -1 Procurement and Possession of Land: MOU on transfer of Land Lease