M/s VINAYAKA CAFETERIA

No. III/292, Chundale P.O.,

WAYANAD DISTRICT
PROJECT REPORT

Prepared by :-
T.P.Paul & Associates , Chartered Accountants
XII/392/2, Anoop Garden, Vikas Nagar,Kalpetta P.O.,

Wayanad Dt. 673 121. Ph: 04936 - 205156. e-mail : tppaulfca@gmail.com

4 COST OF THE PROJECT
Total

Rs. Rs.

Furnishing

Cafeteria Interior works 500,000

Furnture 200,000 700,000

Equipments
DC 4 Lane Full Automatic Tea / Coffee Vending 28,350
Machine
Voltas Freezer with V-Guard Stabilizer 30,700
Samsung Refrigerator V-Guard Stabilizer 25,100

Sujatha Juice Mixie ( 2 Nos ) 10,400

Electric Oven 120,000

Inverter & Battery 30,000

LPG & Connection 15,000

Utensils, crockeries, etc 12,000

Computer, printer & accessories 30,000 301,550

Total 1,001,550

Working Capital 406,583

Pre- operative expenses 20,000

Total 1,428,133

5 SOURCE OF FINANCE
Total

Rs.

Capital ( Promoter's contribution ) 478,133

Term Loan from Bank 650,000
Woking Capital Loan 300,000

Total 1,428,133
6 PROJECTION OF PROFITABILITY
Year -1 Year-2 Year-3 Year-4 Year-5
Rs. Rs. Rs. Rs. Rs.
Sales ( with 5% annual increase )
Coffee & Tea ( Rs.2000 x 300 days ) 600,000 630,000 661,500 694,575 729,304
Fruit juices ( Rs.1500 x 300 days ) 450,000 472,500 496,125 520,931 546,978
Packaged drinks ( Rs.1500 x 300 days ) 450,000 472,500 496,125 520,931 546,978
Snacks, ice creams and bakery ( Rs.1200 x 300 days ) 360,000 378,000 396,900 416,745 437,582
Spices, coffee / tea powder,etc. ( Rs.3500 x 360 days ) 1,260,000 1,323,000 1,389,150 1,458,608 1,531,538
Total (A) 3,120,000 3,276,000 3,439,800 3,611,790 3,792,380
Purchases
Coffee, Tea , sugar, milk, ingradients ( 40% of sales ) 240,000 252,000 264,600 277,830 291,722
Fruits ( 50% of sales ) 225,000 236,250 248,063 260,466 273,489
Packaged drinks ( 75% of sales ) 337,500 354,375 372,094 390,698 410,233
Snacks, ice creams, and bakery ( 70% of sales ) 252,000 264,600 277,830 291,722 306,308
Spices, coffee powder and tea dust ( 75% of sales ) 945,000 992,250 1,041,863 1,093,956 1,148,653
Total Purchases 1,999,500 2,099,475 2,204,449 2,314,671 2,430,405
Salaries & Wages 360,000 378,000 396,900 416,745 437,582
LPG 60,000 63,000 66,150 69,458 72,930
Electricity charges 60,000 63,000 66,150 69,458 72,930
Depreciation 140,233 120,198 103,068 88,418 75,884
Cost of Sales (B) 2,619,733 2,723,673 2,836,717 2,958,749 3,089,732
Gross Profit C=(A-B) 500,268 552,327 603,083 653,041 702,648
Administration & selling
Advertisement 3,000 3,000 3,000 3,000 3,000
Telephone charges 9,000 12,000 15,000 18,000 21,000
Sundry expenses 6,000 6,000 6,000 6,000 6,000
Pre-operative expenses written off 4,000 4,000 4,000 4,000 4,000
(D) 18,000 21,000 24,000 27,000 30,000
Net Profit before Interest E=(C-D) 482,268 531,327 579,083 626,041 672,648
Less: Interest :-
On Term loan 94,250 75,400 56,550 37,700 18,850
On WC loan 43,500 43,500 43,500 43,500 43,500
Net Profit before Income -Tax 344,518 412,427 479,033 544,841 610,298
Less: Provision for Income-Tax 21,864 14,670 21,530 28,309 35,051
Net Profit after Income -Tax 322,654 397,757 457,503 516,532 575,247
7 CASH FLOW STATEMENT
IN FLOWS Year -1 Year-2 Year-3 Year-4 Year-5
Rs. Rs. Rs. Rs. Rs.

Opening Balance - 136,886 256,367 417,419 521,753

Net Profit before Interest and Tax 482,268 531,327 579,083 626,041 672,648
Depreciation 140,233 120,198 103,068 88,418 75,884
Pe-operative expenses written off 4,000 4,000 4,000 4,000 4,000

Total (A) 626,500 792,411 942,519 1,135,878 1,274,285

OUT FLOWS
Increase in Working Capital - 22,474 23,519 24,617 25,769
Repayment of Term loan 130,000 130,000 130,000 130,000 130,000
Interest on Term Loan 94,250 75,400 56,550 37,700 18,850
Interest on WC Loan 43,500 43,500 43,500 43,500 43,500
Income tax 21,864 14,670 21,530 28,309 35,051
Drawings 200,000 250,000 250,000 350,000 350,000

Total (B) 489,614 536,044 525,100 614,125 603,169

Closing balance (A - B) 136,886 256,367 417,419 521,753 671,115

8 PROJECTED BALANCE SHEETS

LIABILITIES Depn. Pre-op Period Year 1 Year 2 Year 3 Year 4 Year 5

Rate
Rs. Rs. Rs. Rs. Rs. Rs.

Capital 478,133 600,787 748,544 956,047 1,122,580 1,347,827

Term Loan 650,000 520,000 390,000 260,000 130,000 -
Working Capital Loan 300,000 300,000 300,000 300,000 300,000 300,000
Total 1,428,133 1,420,787 1,438,544 1,516,047 1,552,580 1,647,827
ASSETS
Cafeteria Interior works 15% 500,000 500,000 425,000 361,250 307,063 261,003###
Furnture 10% 200,000 200,000 180,000 162,000 145,800 131,220###
Equipments 15% 301,550 301,550 256,318 217,870 185,189 157,411###

Gross Block 1,001,550 1,001,550 861,318 741,120 638,052 549,634 ###

Less : Depreciation - 140,233 120,198 103,068 88,418 75,884
###
W.D.V 1,001,550 861,318 741,120 638,052 549,634 473,750 ###
Working Capital 406,583 406,583 429,057 452,576 477,193 502,962
Pre- operative expenses 20,000 16,000 12,000 8,000 4,000 -
Cash Balance - 136,886 256,367 417,419 521,753 671,115

TOTAL 1,428,133 1,420,787 1,438,545 1,516,047 1,552,580 1,647,827

9 DEBTS SERVICE COVERAGE RATIO
Year -1 Year-2 Year-3 Year-4 Year-5 Average
Rs. Rs. Rs. Rs. Rs. Rs.

Net Income after Income-Tax 322,654 397,757 457,503 516,532 575,247 453,939
Depreciation 140,233 120,198 103,068 88,418 75,884 105,560
Interest 43,500 43,500 43,500 43,500 43,500 43,500
Total (C) 506,386 561,455 604,071 648,450 694,631 602,999
Interest 43,500 43,500 43,500 43,500 43,500 43,500
Term Loan Instalment 130,000 130,000 130,000 130,000 130,000 130,000
Total (D) 173,500 173,500 173,500 173,500 173,500 173,500
D. S. C. R. (C/D) 2.92 3.24 3.48 3.74 4.00 3.48
10 WORKING CAPITAL
Amount
Rs.
Current Assets
Stock of Coffee, Tea & Milk powder 60,000
( 3 month stock )
Stock of Fresh Fruits 4,688
( 1 week stock )
Stock of packaged cool drinks 28,125
( 1 month stock )
Stock of bakery 5,250
( 1 week stock )
Stock of LPG 5,000
( Rs.1500 x 1 month )
Stock of spices, coffee powder and tea dust 315,000
( 4 months stock )
Total (A) 418,063
Current Liabilities
Interest payable ( 1 month interest ) 11,479

Total (B) 11,479

Working Capital (A-B) 406,583

11 SALARIES
Category Nos. Monthly Yearly
Salary Salary
Rs. Rs.
Mangement
Self employed 1 - -
Production
Skilled worker 1 12,000 144,000
Unskilled worker 2 9,000 216,000
Total -(a) 3 21,000 360,000
12 LOAN REPAYMENT & INTEREST
Term loan
Year 1 Year 2 Year 3 Year 4 Year 5
Rs. Rs. Rs. Rs. Rs.
Opening Balance 650,000 520,000 390,000 260,000 130,000
Less: Repayment 130,000 130,000 130,000 130,000 130,000
Closing Balance 520,000 390,000 260,000 130,000 -
Interest @ 14.5% 94,250 75,400 56,550 37,700 18,850

Working Capital Loan

Year 1 Year 2 Year 3 Year 4 Year 5
Rs. Rs. Rs. Rs. Rs.
Opening Balance 300,000 300,000 300,000 300,000 300,000
Less: Repayment - - - - -
Closing Balance 300,000 300,000 300,000 300,000 300,000
Interest @ 14.5% 43,500 43,500 43,500 43,500 43,500

13 PROVISION FOR INCOME TAX

Year 1 Year 2 Year 3 Year 4 Year 5
Rs. Rs. Rs. Rs. Rs.

Net Profit after interest 482,268 412,427 479,033 544,841 610,298

Income Tax 21,227 14,243 20,903 27,484 34,030
Education Cess @ 3% 637 427 627 825 1,021
Total Tax Payable 21,864 14,670 21,530 28,309 35,051
14 WORKING CAPITAL RATIOS
Year -1 Year-2 Year-3 Year-4 Year-5 Average
Rs. Rs. Rs. Rs. Rs. Rs.
Basic data
Gross Profit 500,268 552,327 603,083 653,041 702,648 602,273
Profit before interest 482,268 531,327 579,083 626,041 672,648 578,273
Profit before tax 344,518 412,427 479,033 544,841 610,298 478,223
Profit after tax 322,654 397,757 457,503 516,532 575,247 453,939
Sales 3,120,000 3,276,000 3,439,800 3,611,790 3,792,380 3,447,994
Purchases 240,000 252,000 264,600 277,830 291,722 265,230
Stock 418,063 438,966 460,914 483,960 508,158 533,565
Debtors - - - - - -
Creditors - - - - - -
Current Assets 418,063 438,966 460,914 483,960 508,158 533,565
Current Liabilities 11,479 9,908 8,338 6,767 5,196 5,456
Working Capital 406,583 429,057 452,576 477,193 502,962 528,110
Capital Employed ( Capital & Loans ) 1,428,133 1,420,787 1,438,544 1,516,047 1,552,580 1,471,218
Ratios
Sales Working capital ratio Sales/WC 7.67 7.64 7.60 7.57 7.54 7.60
Stock turnover ratio Sales/Stock 7.46 7.46 7.46 7.46 7.46 7.46
Current ratio Current Assets / 36.42 44.30 55.28 71.52 97.80 61.07
Current Liabilities
G.P.Ratio GP / Sales 16.03 16.86 17.53 18.08 18.53 17.41
Netprofit ratio NP / Sales 11.04 12.59 13.93 15.09 16.09 13.75
Return on Investment (%) N P /CE 24.12 29.03 33.30 35.94 39.31 32.34
Debtors Collection period Debtors / - - - - - -
( In weeks ) Weekly credit sales
Creditors payment period Creditors / - - - - - -
( In weeks ) Weekly purchase