TEV Report-Rayson Food Final 27.08.2020

TECHNO ECONOMIC VIABILITY STUDY
OF THE PROPOSED
BAKERY UNIT BY RAYSON FOOD AND HOSPITALITY PRIVATE LIMITED
Prepared By:Basu & Basu

Chartered Accountants
Head Office:
10/1/N, Swinhoe Street,

Ballygunge,Ground Floor,Kolkata- 700 019.
Tel: +91 33 2460 2511
Email: info@basuandbasu.in
Web: www.basuandbasu.in
Branch Offices:
Mumbai:
Unit No. 4, 573, Kumbharwada,
Sion Trombay Road, Chembur,
Mumbai – 400 071.
Tel: + 91 98337 93387
Email:mumbai@basuandbasu.in
New Delhi:
802, 8th Floor, 59 Shakuntala Building,
Nehru Place,
New Delhi - 110 019.
Tel: + 91 11 4166 8009
Email:newdelhi@basuandbasu.in
This document is the property of Basu & Basu, Chartered Accountants, and is a confidential
document. The Contents of this document shall not be copied, photocopied, extracted
or circulated by anyone except State Bank of India, the company and others directly
related to this proposal to State Bank of India without our prior permission.
TEV Report of Rayson Food and Hospitality Pvt. Ltd.
Table of Contents
Chapter
Subject Page No.
Sl. No.
-- Executive Summary 4
1 Promoters of the Project 5
2 Project 6
2.0 Introduction 6
2.1 Project Location 6
2.2 Location Advantages 7
2.3 SWOT Analysis of the Project 8
3 Market Analysis 9
3.0 Introduction 9
3.1 Market Size 9
3.2 Industry 10
3.3 Assessment of Local Demand 10
4 Organization, Manpower & Project Implementation 11
4.0 Organization Structure 11
4.1 Manpower 11
4.2 Project Implementation 11
5 Project Assumptions 12
5.0 Leased Space 12
5.1 Estimate Project Costs 12
5.2 Margin money for working capital 14
5.3 Financing Assumptions 14
5.4 Summary Project Cost assumed 14
5.5 Summary of Project Financing assumed 15
5.6 Summary of Working Capital Financing assumed 15
6 Key Operational Assumptions 16
6.0 Installed Capacity and Capacity Utilization 16
6.1 Revenue assumptions 16
7 Operating Expenses Assumptions 18
7.0 Lease Rental 18
7.1 Manpower costs 18
7.2 Other Operating Cost Assumptions 18

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7.3 Depreciation & Tax rates 19
7.4 Working Capital assumptions 19
7.5 Dividend 19
8 Financials & Returns 20
8.1 Profitability projections for 6 years 20
8.2 Cash Flow Statements for 6 years 21
8.3 Balance Sheet for 6 years 22
8.4 Financial Ratios for 6 years 23
8.5 Project Returns 24
8.6 Project Risks 24
8.7 Risk Assessment and recommendation for Risk Management 24
8.8 Project Sensitivity 25
9 Conclusion and Funding Proposal 26
9.0 Conclusion 26
9.1 Funding Proposal 27
10 Working Capital Assessment ( Form-II & Form-III) 28
List of Tables & Annexures

Annexure
Sl. No. Subject
No.
1 The Lease Rental agreement Annexure-1
2 Quotations from Suppliers of Tools and Moulds Annexure-2
3 Quotations from Suppliers of Plant and Equipment’s Annexure-3
4 Quotations for Civil and Interior Work Annexure-4
5 Quotations for Computers & Accessories Annexure-5
6 Company Registration Documents Annexure-6
Marketing & Other Infrastructure, Franchisee development,
7 Annexure-7
hoarding etc. costs
8 Term Loan Repayment Schedule Annexure-8
9 Detailed profile and proposed role of the management Annexure-9
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Executive Summary
Name of the Company Rayson Food and Hospitality Private Limited
Date of Incorporation 13-02-2020
Constitution Company limited by Shares
CIN U15549WB2020PTC236448
Industry Food and Hospitality
2B, 2nd Floor 731 Purbachal Main Road Kolkata
Registered Office
Kolkata WB 700078 IN
Number of Directors Two
Rayson Food and Hospitality Private Limited is a

Brief details on the Company Company limited by Shares pursuant to Section
2(22) of the Company’s Act 2013.
Rayson Food and Hospitality Private Limited

proposes to offer the widest range in Bakery and
Confectionery products in Kolkata, West Bengal,
Proposed Project Description where it wishes to provide quality products at
affordable rates which will captivate its
customers. Total project cost have been
estimated at Rs. 150.00 lakhs,
Rayson Food and Hospitality Private Limited is
looking for a Loan/Debt financing of Rs 120.00
Lakhs for the project. The Promoters
corresponding Capital contribution is Rs. 30.00
Funding Proposal
Lakhs. It is also looking for working capital
financing of Rs. 30.00 lakhs against which
corresponding contribution of promoters is Rs.
10.00 Lakhs
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Chapter 1
Promoters of the Project
The promoters and partners of the Project are:
1. Mr. Raymond Das (Director): The profile of Mr. Raymond Das is given below:
Full Name: Mr. Raymond Das

Father's Name: Bhaba Ranjan Das
Age: 48 years
Present Address: Flat 2B, 731 Purbachal Main Road, Kolkata-700078
Education: Commerce Graduate
PAN No.: ADCPD5292L
Present Occupation: Business
Experience: Around 25 years including 6 years in same line of activities.
Net Worth as on 31.03.2020: Rs. 50.00 Lacs approx.
2. Mrs. Monisha Das (Director): The profile of Mrs. Monisha Das is given below:
Full Name: Mrs. Monisha Das

Father’s Name: Lucas Mountu Gomes
Age : 47 years
Present Address: Flat No. 1B, 186 Kalikapur Road, Kolkata-700 099.
Education: Higher Secondary
PAN No.: AXUPD7363G
Present Occupation :Business
Experience: Around 15 years including 6 years in same line of business.
3. Mr. Dennis Das (CEO and Advisor): The profile of Mr. Dennis Das is given
below:
Full Name: Mr. Dennis Das

Father’s Name: Bhaba Ranjan Das
Age : 52 years
Present Address: Flat No. 1B, 186 Kalikapur Road, Kolkata-700 099.
Education: Graduate
PAN No.:AEFPD5924D
Present Occupation :Business
Experience: Around 30 years including 7 years in same line of business.
The Promoters of the Project are from different professional field with combined
experience of many years in many fields who can successfully make the
project viable. The team consists of experienced hardcore marketing
personnel and experienced financial experts.
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Chapter 2
Project
2.0 Introduction
Bakery products, due to high nutrient value and affordability, are an item of huge
consumption. Due to the rapid population rise, the rising foreign influence, the emergence
of a female working population and the fluctuating eating habits of people, they have
gained popularity among people, contributing significantly to the growth trajectory of the
bakery industry. A number of healthy products have been launched in the bakery segment
and are gaining popularity at a high rate.
Considering the above fact, the promoters’ family of Rayson Food and Hospitality Private
Limited have planned to enter into the business in this segment and included almost all kind
of bakery products to meet the consumer demand. Promoters’ family have yearlong
experience into food business.
2.1 Project
Rayson Food and Hospitality Private Limited is a Company Limited by Shares pursuant to
Section 2(22) of the Company’s Act 2013, bearing CIN No: U15549WB2020PTC236448
having its registered office at 2B, 2nd Floor 731 Purbachal Main Road, Kolkata-700078.
Rayson Food and Hospitality Private Limited proposes to produce widest range in
Bakery and Confectionery products and selling the same through its two own stores in
prime location of Kolkata and also through fourteen franchisee stores in Kolkata, West
Bengal.
Basu & Basu, an empaneled TEV consultant with State Bank of India, have been engaged
by the company to prepare and submit the Project Report. Basu & Basu, after collecting all
required input and information from the promoters and from the market has developed this
report, for the purpose of approaching to State Bank of India for funding for the said
project by the company.
2.2 Project Location
The project is located near Park Circus Seven Points, Kolkata. The details of the
Space are as follows;
• Building Name:
• Area: Super Built up: 2,000 sq. ft.
• Floors: Ground.
• Type of Holding: Lease Rental for 6 years.
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• Car parking: 2 spaces

The Lease Rental agreement with Rayson and Building Owners will be entered
effective from the 1st day of September, 2020, the details is provided in
Annexure-1
2.3 Location Advantages:
The location of the bakery manufacturing unit, proposed own outlets and franchisee
driven outlets which will me mostly located in Central and South Kolkata has the
following advantages.
• Proximity to achieve a larger customer base covering the southern and
central part of Kolkata as well as the suburban areas annex to Kolkata,
• Proximity to the market.
• Availability of facilities like guarantee of fresh ingredients, availability of quality
products etc.
• Easy availability of skilled manpower in nearby area.
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2.4 SWOT Analysis of the Project

SWOT of the Project
STRENGTHS WEAKNESSES
Rayson will have enough area of operation Bakery products are perishable items.
and ample storage space.
Skilled and semi-skilled workers/employees is Sensitive to commodity price
easily available for Rayson due to the fluctuations.
previous connection of the promoters’ family
in food business.
Low Capital Requirements for this business. During the initial stage Rayson have to
compromise with its pricing in view of
the competitiveness in the market.
Rayson will be located in South Kolkata Rayson is a newly formed entity and
where bakery products are in high demand. would have the challenge of market
penetration.
Previous experience of the promoters’ family Mitigating Factor: The promoters’
in food business will have added advantage expertise, knowledge and goodwill
over others. will help them to effectively handle
competition.
OPPORTUNITIES THREATS
The nutritional value and attractive Tough competition with other big
packaging of the products can also create brands.
an opportunity.
The increasing township and mall culture Price wars among competitors.
have created market potential for bakery
products.
The High income group having lavish living Product Substitution.
standard have passion to use bakery
products instead of packaged products
available in market.
The food habit of low and medium income Technology Up gradation.

group have also been changed and as
such, they are also likely to be a good
consumer of bakery products.
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Chapter 3
Market Analysis
3.0 Introduction
The global bakery products market is projected to grow at a CAGR of 2.6% during the
forecast period.
• The bakery products have long been basic food products for human nutrition. The
convenience, accessibility and nutrition profile associated with them are the major
factors of their sustenance in the modern market. Their significance as a major
portion of diet has been prevalent in middle to lower income group countries like
India.
• The rising trend of “Natural nutrition”, “healthy living” and “organic products” has
significantly raised the consumers’ demand on whole wheat, light, natural and
additive-free products. In recent years, the growth in sales of packaged, whole
wheat, whole meal, gluten-free and natural products is an important indication of
this new and healthy living sense.
• As one of the largest segments in the food processing sector in India, the bakery
industry offers huge opportunities for growth, innovation, and job generation. As the
second largest producer of bakery products after the USA, India is a key player
internationally, and with the entrepreneurial spirit of Indian companies and
individuals it is one of the most exciting regions for the bakery sector.
• Changing consumer habits and lifestyle are shaping the bakery industry in India. Part
of a global trend, there is greater demand for healthier products and alternatives,
particularly when it comes to bakery goods which are now more commonly
consumed daily as opposed to being a treat.
Considering all the above, Rayson Food and Hospitality Private Limited have tried to
include all sorts of bakery products to meet the consumer demand.
3.1 Market Size
The Indian bakery industry is one of the biggest sections in the country’s processed food
industry. Bakery products, which include bread and biscuits, form the major baked foods
accounting for over 82 per cent of the total bakery products produced in the country. It
enjoys a comparative advantage in manufacturing, with an abundant supply of primary
ingredients required by the industry, and is the third-largest biscuit manufacturing country
(after the United States and China). The bakery segment in India can be classified into the
three broad segments of bread, biscuits and cakes. India’s organized bakery sector
9|Page
produces about 1.3 million tonne of bakery products out of 3 million tonnes while the
balance is produced by unorganized, small-scale local manufacturers.
Baked goods are expected to grow by constant value at a compound annual growth
rate (CAGR) of two per cent over the forecast period.
Driven by the evolving perception of bakery products in India and the changing
consumer preferences, the Indian bakery industry would touch levels of Rs. 500 billion in
the next five years.
3.2 Industry
The Bakery industry and India is experiencing robust growth over 9% according to a recent
report. It's a huge industry employing a large number of people. In fact with over a million
an organized small scale bakeries and more than 2000 organized or semi organized
bakeries. The Bakery sector is the largest of all the segment of India's food processing
sector. Report released by leading market research company IMARC in March 2019
started that the Indian Bakery markets reach a value of dollars 7.22 billion in 2018. The
market value is projected to exceed dollar 12 billion within the next 5 year expanding at a
compound annual growth of 9.3 % during 2019-2014.
Kolkata, especially central and south Kolkata, is almost at par with the average demand
in the country and growth in demand is also at par with the national standard.
3.3 Assessment of Local Demand
As far as the bakery market of Kolkata is concerned, the shares of the branded and organized
sector and the unbranded and unorganized sectors are almost 60 per cent and 40 per cent
respectively. Indian bakery products, especially biscuits, are in great demand in South and
Central Kolkata.
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Chapter 4
Organization, Manpower& Project Implementation
4.0 Organization Structure
Rayson Food and Hospitality will be managed by a Board of members mainly the
promoters/partners of the Private Limited Company. The proposed Organogram for
the project will be as follows;
4.1 Manpower
Rayson Food and Hospitality Private Limited proposes to employ 76 personnel. The
detailed breakdown of Manpower required at full capacity is provided as below:
Employment
Category Numbers
Type
Head of Operation/Chef Full time 1
Supervisor Full time 4
Production Section for 2 shifts Full time 15
Packaging (2 shifts) Full time 6
Sales Persons ( 2 /Shift) Full time 50
Total Salary Expenses per month 76
4.2 Project Implementation

Rayson has planned to start its commercial production as on 30.09.2020 and running its
outlets as on the same date and accordingly, it has actively started finalizing the orders to
various vendors.
Rayson is also at the final stage of finalizing its franchisees based upon their experience and
infrastructure to run the outlets.
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Chapter 5
Project Assumptions
5 Project Assumptions
5.0 Leased space
A total area of 2000 sq. ft. of built up space has been considered for the project
manufacturing location. The space has been acquired on a lease basis for a period of 6
years commencing 1st of September, 2020 from a church. The total lease rental payable is
Rs. 50,000/- per month, to be enhanced by 10% of the existing lease rent after every
completed period of 6 years. No security deposit would be payable for taking the lease.
5.1 Estimated Project Costs
The project cost estimate is detailed below:
Amount GST Suppliers

Sl. No. Particulars UOM Qty. Rate Total Amount
(Rs.) @18% Name
1 Tools & Moulds:
2 Pound Bread Mould Nos. 72 670 48,240 8,683 56,923 S. R. Udyog
1 Pound Bread Mould Nos. 150 540 81,000 14,580 95,580 -Do-
1/2 Pound Nos. 200 460 92,000 16,560 1,08,560 -Do-
Cake Trays Alliminum Nos. 120 1,780 2,13,600 38,448 2,52,048 -Do-
4 inches plastic Crates Nos. 200 1,120 2,24,000 40,320 2,64,320 -Do-
Perforated Crates Neelkamal Nos. 100 2,470 2,47,000 44,460 2,91,460 -Do-
2 Plant & Equipment’s:

East Zone
Baking Section Nos. - - 26,71,000 4,75,860 31,46,860 Engineering
Corpn.
Mixing & Preparation Room Nos. - - 19,20,000 3,45,600 22,65,600 -Do-
-Do-
Confectionery Room Nos. - - 7,37,000 1,24,260 8,61,260
-Do-
Store Room Nos. - - 2,72,675 41,582 3,14,257
-Do-
Trolley Nos. - - 92,500 11,100 1,03,600
-Do-
Utensil Wash Section Nos. - - 85,500 10,260 95,760
-Do-
Packing & Despatch Section Nos. - - 2,19,000 29,250 2,48,250
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-Do-
Trolley Nos. - - 1,02,500 12,300 1,14,800
-Do-
Retail Shop Equipment Nos. - - 8,56,000 1,54,080 10,10,080
-Do-
Exhaust System Nos. - - 5,23,000 1,58,580 6,81,580
3 Civil Work & Interiors-Outlet 1:

EMBY
Civil & Flooring Sq. Ft. 400 240 96,000 - 96,000 Interior &
Exterior
Partitions Sq. Ft. 100 550 55,000 - 55,000 -Do-
False Ceiling Sq. Ft. 460 100 46,000 - 46,000 -Do-
False Ceiling-Laminated Sq. Ft. 100 400 40,000 - 40,000 -Do-
Doors Nos. 1 26,000 26,000 - 26,000 -Do-
-Do-
Finishes-Plaster of Paris punning 2-
Sq. Ft. 1,070 12 12,840 - 12,840
4mm thick
-Do-
Finishes-3 coats of Acrylic Emulsion
Sq. Ft. 1,500 35 52,500 - 52,500
Paint
-Do-
Supply and fixing vinyl graphic on
Sq. Ft. 100 250 25,000 - 25,000
wall
-Do-
Supply and fixing Split AC 2 ton
Nos. 1 60,000 60,000 - 60,000
Inverter
4 Civil Work & Interiors-Outlet 2: -Do-
Civil & Flooring Sq. Ft. 400 270 1,08,000 - 1,08,000 -Do-
Partitions Sq. Ft. 140 550 77,000 - 77,000 -Do-
False Ceiling Sq. Ft. 460 140 64,400 - 64,400 -Do-
False Ceiling-Laminated Sq. Ft. 140 520 72,800 - 72,800 -Do-
Doors Nos. 1 26,000 26,000 - 26,000 -Do-
-Do-
Finishes-Plaster of Paris punning 2-
Sq. Ft. 1,070 22 23,540 - 23,540
4mm thick
-Do-
Finishes-3 coats of Acrylic Emulsion
Sq. Ft. 1,500 42 63,000 - 63,000
Paint
-Do-
Supply and fixing vinyl graphic on
Sq. Ft. 100 350 35,000 - 35,000
wall
-Do-
Supply and fixing Split AC 2 ton
Nos. 1 60,000 60,000 - 60,000
Inverter
Expenditure on Marketing & Other

Infrastructure, Franchisee Various as
5 development, hoarding, NA NA NA 28,50,000 - 28,50,000 shown in
Preliminary & Pre-operative Annexure-7
Expenses etc. :
6 Computers & Accessories:

Mind &
Matter
Desktop Computers Nos. 2 45,000 90,000 - 90,000 Mktg.
Solutions
Pvt. Ltd.
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-Do-
Laptops Nos. 3 55,000 1,65,000 - 1,65,000
-Do-
Billing Software Nos. 1 2,50,000 2,50,000 - 2,50,000
-Do-
Website Development Nos. 1 1,50,000 1,50,000 - 1,50,000
-Do-
Printers Nos. 3 35,000 1,05,000 - 1,05,000
Total 1,29,38,095 15,25,923 1,44,64,018
Add: Contingencies @4% 5,78,561

Total Estimated Project Cost 1,50,42,578
Rounded Off (In Rs. Lacs) 150
5.2 Margin money for working capital
Margin money for working capital has been assumed at 25% of the Current Asset
requirement.
5.3 Financing Assumptions:
The Project is assumed to be funded in a Debt Equity ratio of 80:20

The Equity is assumed to come from the promoters of the company which shall include
expenses already incurred on feasibility study, preliminary and pre-operative expenses and
other costs as may be required. Debt is assumed to come from Commercial Banks. The
Loan terms assumed for the project is as below:
Interest rate 9.50% p.a.

Loan Term (Yrs) 6
Debt Service 5
Moratorium 1 year
5.4 Summary Project Cost assumed
Based on the above assumptions the Project Cost break up is as follows:

Project Cost -Summary Rs. Lakhs
Tools & Moulds 10.69
Plant & Equipment’s 88.42
Civil Work & Interiors-Outlet 1 4.13
Civil Work & Interiors-Outlet 2 5.30
Marketing & Other Infrastructure, Franchisee development, hoarding etc.
28.50
costs
Computers & Accessories 7.60
Contingencies @4% on all the above 5.79
Total Project Cost 150.43
Total Project Cost (Rounded Off) 150.00
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5.5 Summary Project Financing assumed

Financing Rs. Lakhs
Share Capital (Equity) 30.00 20%
Debt 120.00 80%
Total Financing 150.00 100%
5.6 Summary of Working Capital Financing assumed

Financing Rs. Lakhs Share%
Quasi Equity 10.00 25%
Debt 30.00 75%
Total Financing 40.00 100%
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Chapter 6
Key Operational Assumptions
6.0 Installed Capacity and Capacity Utilization
Installed Capacities:
Year
Particulars UOM
2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
Bread Lb 4.17 4.17 4.17 4.17 4.17 4.17
Milk Bread (2 Types) Lb 1.56 1.56 1.56 1.56 1.56 1.56
Brown Bread Lb 0.52 0.52 0.52 0.52 0.52 0.52
Multi Grain Bread Lb 0.39 0.39 0.39 0.39 0.39 0.39
Massala Bread Lb 0.26 0.26 0.26 0.26 0.26 0.26
Foccacia Lb 0.13 0.13 0.13 0.13 0.13 0.13
French Loaf Lb 0.26 0.26 0.26 0.26 0.26 0.26
Garlic Bread Lb 0.21 0.21 0.21 0.21 0.21 0.21
Pav Bhaji Bread 9 pcs 1.04 1.04 1.04 1.04 1.04 1.04
Dinner Rolls Pcs 1.56 1.56 1.56 1.56 1.56 1.56
Burger pack 1.04 1.04 1.04 1.04 1.04 1.04
Buns pack 0.13 0.13 0.13 0.13 0.13 0.13
Hot Dog Bread pack 0.13 0.13 0.13 0.13 0.13 0.13
Pizza Base pack 0.13 0.13 0.13 0.13 0.13 0.13
Cakes Lb 0.26 0.26 0.26 0.26 0.26 0.26
Pastry Pcs 0.52 0.52 0.52 0.52 0.52 0.52
Pattis (Veg+non Veg) Pcs 1.04 1.04 1.04 1.04 1.04 1.04
Muffin Pcs 1.56 1.56 1.56 1.56 1.56 1.56
Ruskits Kg 0.52 0.52 0.52 0.52 0.52 0.52
Cookies Kg 0.52 0.52 0.52 0.52 0.52 0.52
Plain Crossiant pack 0.52 0.52 0.52 0.52 0.52 0.52
Soup Sticks pack 0.52 0.52 0.52 0.52 0.52 0.52
Muffins Chocholate pack 0.26 0.26 0.26 0.26 0.26 0.26
Special Cakes ( icing ) Lb 0.13 0.13 0.13 0.13 0.13 0.13
Total 17.42 17.42 17.42
17.42 17.42 17.42
Capacity Utilizations: 70% 80% 90% 100% 100% 100%
No. of Months in Operation 6 12 12 12 12 12
6.1 Revenue Assumptions

Sales Price Year
Particulars
(Rs.) 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
Bread 24 35.04 84.10 99.34 115.89 121.69 127.77
Milk Bread (2 Types) 27 14.78 35.48 41.91 48.89 51.34 53.90
Brown Bread 29 5.29 12.70 15.00 17.50 18.38 19.30
Multi Grain Bread 35 4.79 11.50 13.58 15.84 16.64 17.47
Massala Bread 60 5.48 13.14 15.52 18.11 19.01 19.96
Foccacia 55 2.51 6.02 7.11 8.30 8.71 9.15
French Loaf 55 5.02 12.05 14.23 16.60 17.43 18.30
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Garlic Bread 50 3.65 8.76 10.35 12.07 12.68 13.31

Pav Bhaji Bread 35 12.78 30.66 36.22 42.25 44.37 46.58
Dinner Rolls 4 2.19 5.26 6.21 7.24 7.61 7.99
Burger 48 17.52 42.05 49.67 57.95 60.84 63.89
Buns 49 2.24 5.37 6.34 7.39 7.76 8.15
Hot Dog Bread 45 2.05 4.93 5.82 6.79 7.13 7.49
Pizza Base 60 2.74 6.57 7.76 9.05 9.51 9.98
Cakes 300 27.38 65.70 77.61 90.54 95.07 99.82
Pastry 30 5.48 13.14 15.52 18.11 19.01 19.96
Pattis (Veg+non Veg) 35 12.78 30.66 36.22 42.25 44.37 46.58
Muffin 20 10.95 26.28 31.04 36.22 38.03 39.93
Ruskits 70 12.78 30.66 36.22 42.25 44.37 46.58
Cookies 340 62.05 148.92 175.91 205.23 215.49 226.27
Plain Crossiant 60 10.95 26.28 31.04 36.22 38.03 39.93
Soup Sticks 30 5.48 13.14 15.52 18.11 19.01 19.96
Muffins Chocholate 60 5.48 13.14 15.52 18.11 19.01 19.96
Special Cakes ( icing ) 400 18.25 43.80 51.74 60.36 63.38 66.55
Total 287.62 690.29 815.40 951.30 998.87 1,048.81
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Chapter 7
Operating Expenses Assumptions
7.0 Lease Rental
The lease rental payable is Rs. 40,000/- per month for the production facilities, to be
enhanced by 10% of the existing lease rent after every completed period of 6 years. No
security deposit would be payable for taking the lease. Rental for the outlets have been
considered @ Rs. 20,000 per month and included under the head Establishment Expenses.
7.1 Manpower costs

At full capacity around 76 personnel is considered with total outlay of around Rs. 8.06
Lakhs outgo in the first year and thereafter @ 5% increase each year. The category wise
numbers and rates assumed are as follows:
Manpower requirement
No. of Per month
Particulars Amount (Rs.)
person Salary
- Head of Operation/Chef 1 50,000 50,000
- Supervisor 4 13,000 52,000
- Production Section for 2 shifts 15 10,000 1,50,000
- Packaging (2 shifts) 6 9,000 54,000
- Sales Persons ( 2 /Shift) 50 10,000 5,00,000
Total Salaries 76 92,000 8,06,000
Year wise Manpower Expenses

Particular of Expenses 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
- Head of Operation/Chef 3.00 6.30 6.62 6.95 7.29 7.66
- Supervisor 3.12 6.55 6.88 7.22 7.58 7.96
- Production Section for 2 shifts 9.00 18.90 19.85 20.84 21.88 22.97
- Packaging (2 shifts) 3.24 6.80 7.14 7.50 7.88 8.27
- Sales Persons ( 2 /Shift) 30.00 63.00 66.15 69.46 72.93 76.58
Total Salaries 48.36 101.56 106.63 111.97 117.56 123.44
7.2 Other Operating Cost Assumptions

Particular of Expenses Type Amount (Rs.) 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
- Electricity Charges Per Month 3,00,000 18.00 37.80 39.69 41.67 43.76 45.95
- Housekeeping & Pest Control Per Month 80,000 4.80 9.89 10.18 10.49 10.80 11.13
- Annual Maintenance Charges Per Month 10,000 0.60 1.20 1.20 1.20 1.20 1.20
- Mobile charges Per Month 8,000 0.48 1.01 1.06 1.11 1.17 1.23
- Printing & Stationery Per Month 20,000 1.20 2.52 2.65 2.78 2.92 3.06
- Licenses & Taxes Per Month 5,000 0.30 0.60 0.60 0.60 0.60 0.60
- Price/Promotion Tags Per Month 5,000 0.30 0.63 0.66 0.69 0.73 0.77
- Insurance Fixed 10,000 0.10 0.10 0.10 0.10 0.10 0.10
- Miscellaneous Exp. Fixed 20,000 0.20 0.20 0.20 0.20 0.20 0.20
18 | P a g e
7.3 Depreciation and Tax Rates

Depreciation has been worked out on Written Down Value method considering the rates
applicable for equipment, buildings, etc. under the Companies Act’ 2013.
7.4 Working Capital assumptions

Financing Rs. Rs. / Lakhs % Cont.
Equity/Internal Accruals 10,00,000 10.00 25%
Debt 30,00,000 30.00 75%
Total Financing 40,00,000 40.00 100%
Based on the above assumptions, the Working capital Gap and Working capital Loan
requirement is computed as per Working Capital Assessment (Form-II & Form-III) data
annexed in this report:
7.5 Dividend
Dividend has been proposed @ 20% of Net Profits after Tax with effect from third years
of its operation.
19 | P a g e
Chapter 8. Financials and Returns

8.1 Profitability Projections for 6years
Particulars 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
Gross Sales 287.62 690.29 815.40 951.30 998.87 1,048.81
Export Sales - - - - -
Domestic Sales 287.62 690.29 815.40 951.30 998.87 1,048.81
Less : GST - - - - - -
Net Sales 287.62 690.29 815.40 951.30 998.87 1,048.81
Variable Cost
Raw Materials Consumed 86.29 207.09 244.62 285.39 299.66 314.64
- Imported - - - - - -
- Indigenous 86.29 207.09 244.62 285.39 299.66 314.64
Packing & Consumable Stores
Carry Bags 7.32 15.37 16.14 16.95 17.80 18.68
Other Consumables 43.14 103.54 122.31 142.70 149.83 157.32
Power & Fuel 18.00 37.80 39.69 41.67 43.76 45.95
Salary & Wages 48.36 101.56 106.63 111.97 117.56 123.44
Dressing & Laundry 1.52 2.55 2.68 2.82 2.96 3.10
Repair and Maintenance 0.60 1.20 1.20 1.20 1.20 1.20
Depreciation 27.15 22.24 18.21 14.91 12.22 10.00
Sub Total 232.38 491.35 551.49 617.60 644.98 674.35
Cost of Production 232.38 491.35 551.49 617.60 644.98 674.35
Gross Profit 55.24 198.94 263.91 333.70 353.89 374.47
Less: Selling General & Administrative Expenses
Insurance 0.10 0.10 0.10 0.10 0.10 0.10
Mobile charges 0.48 1.01 1.06 1.11 1.17 1.23
Printing & Stationery 1.20 2.52 2.65 2.78 2.92 3.06
Licenses & Taxes 0.30 0.60 0.60 0.60 0.60 0.60
Price/Promotion Tags 0.30 0.63 0.66 0.69 0.73 0.77
Miscellaneous Exp 0.20 0.20 0.20 0.20 0.20 0.20
Housekeeping & Pest Control 4.80 9.89 10.18 10.49 10.80 11.13
Profit before Interest but after Dep. 47.86 183.99 248.46 317.72 337.37 357.38
Less: Interest
On Term Loan 4.83 12.03 10.20 7.65 4.85 1.77
On Working Capital 3.00 3.00 3.00 3.00 3.00 3.00
Total Interest 7.83 15.03 13.20 10.65 7.85 4.77
Balance 40.04 168.97 235.27 307.08 329.52 352.61
Profit Before Taxation 40.04 168.97 235.27 307.08 329.52 352.61
Income tax provision Current 10.01 42.24 58.82 76.77 82.38 88.15
Profit After Taxation 30.03 126.72 230.31 247.14 264.46
176.45
Proposed Dividend @20% - - 6.00 6.00 6.00 6.00
Retained Profit 30.03 126.72 170.45 224.31 241.14 258.46
8.2 Cash Flow Statements for 6 years
Net Profit after tax 30.03 126.72 176.45 230.31 247.14 264.46
Depreciation 27.15 22.24 18.21 14.91 12.22 10.00
Provisions/Amortization - - - - - -
Changes in WC - 24.66 7.66 8.32 2.91 3.06
Cash flow from Operations (a) 57.18 173.62 202.32 253.54 262.27 277.52
Purchase of Fixed Assets -150.00 - - - - -
Margin Money for WC 10.00 - - - - -
Security Deposits - - - - - -
Advance Tax -10.01 -42.24 -58.82 -76.77 -82.38 -88.15
Cash flow from Investing activities (b) -150.01 -42.24 58.82 76.77 82.38 -88.15
Shareholders contribution/Quasi Equity 30.00 - - - - -

Long term loans 120.00 -17.94 -35.88 -35.88 -35.88 -35.88
Short term investment(WC) - - - - - -
Dividend Payments - - -6.00 -6.00 -6.00 -6.00
- - -
Cash flow from Financing activities ( c) 150.00 -17.94 -41.88
41.88 41.88 41.88
Changes in Cash balances(a)+(b)+( c) 57.17 113.43 101.63 134.89 138.01 147.49
Opening Cash balance - 57.17 170.60 272.23 407.12 545.13
Closing cash Balance 57.17 170.60 272.23 407.12 545.13 692.62
21|Page
8.3 Projected Balance Sheet for 6 years

2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
Particulars
Estimated Proj Proj Proj Proj
LIABILITIES:
i) Equity Share Capital 30.00 30.00 30.00 30.00 30.00 30.00
ii) Reserve and Surplus 30.03 156.75 327.20 551.51 792.65 1,051.11
iii) Term Loan 124.83 118.92 93.23 65.00 33.97 -
iv) Bank Borrowings for working capital 30.00 30.00 30.00 30.00 30.00 30.00
v) Unsecured Loan/Quasi Equity 10.00 10.00 10.00 10.00 10.00 10.00
vi) Current Liabilities for Goods 2.48 5.96 7.04 8.21 8.62 9.05
vii) Provision for taxation 10.01 42.24 58.82 76.77 82.38 88.15
viii) Other Current Liabilities 20.00 41.27 43.08 44.97 46.95 49.02
Total 257.34 435.14 599.37 816.46 1,034.57 1,267.33
2020-21 2021-22 2022-23 2023-24 2024-25 2025-26

Particulars
Estimated Proj Proj Proj Proj Proj
ASSETS:
i) Gross Block 150.00 150.00 150.00 150.00 150.00 150.00
Less: Depreciation 27.15 49.39 67.60 82.51 94.73 104.73
ii) Net Block 122.85 100.61 82.40 67.49 55.27 45.27
iii) Trade Receivables 16.55 39.72 46.91 54.73 57.47 60.34
iv) Other Current Assets 47.22 73.46 128.95 198.62 282.00 368.02
v) Cash and Bank Balance 57.17 170.60 272.23 407.12 545.13 692.62
vi) Inventories 3.55 8.51 10.05 11.73 12.31 12.93
vii) Advance Tax 10.01 42.24 58.82 76.77 82.38 88.15
Total 257.34 435.14 599.36 816.46 1,034.57 1,267.33
22| Page
8.4 Financial Ratios for 6 years
The Financial Ratios computed are as under:
RATIOS 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26

EBIDTA% on Net Sales 28.65% 32.04% 34.60% 36.65% 36.65% 36.66%
EBIT% on Net Sales 16.64% 26.65% 30.47% 33.40% 33.78% 34.07%
EAT% on Net sales 10.44% 18.36% 21.64% 24.21% 24.74% 25.22%
Fixed Asset Turnover Ratio 0.43 0.15 0.10 0.07 0.06 0.04
DSCR 0.63 11.50 7.43 9.27 9.74 10.24
Return on Capital Employed 16.24% 41.46% 39.17% 35.62% 28.85% 24.46%
Return on Equity 50.02% 67.86% 49.40% 39.61% 30.04% 24.46%
Current Ratio 2.99 2.58 3.71 4.98 6.33 7.60
Debt Equity Ratio 2.08 0.64 0.26 0.11 0.04 -
Manpower Ratio on Net sales 16.81% 14.71% 13.08% 11.77% 11.77% 11.77%
Overhead Ratio on Net Sales 80.79% 71.18% 67.63% 64.92% 64.57% 64.30%
Total Direct Cost ratio on Net Sales 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
23| Page
8.5 Project Returns
The Normal Payback period is around 2 Years while the discounted payback
period @10% is around 3 Years.
The Base Case 6 Year Project Internal Rate of Return (Pre-Tax) is 63.30 %.
The Base Case 6 Year Project Internal Rate of Return (Post-Tax) is 48.06 %.
8.6 Project Risks
Risk Area Assessment Mitigation

Litigation / Regulatory risks No Not required
Patent risks No Not required
Latest Up to date
Technology Obsolescence
Moderate technology will be
Risks
employed
Very Low, skilled and
Human Risks semi-skilled manpower Not required
available
Close monitoring will be
Financial risks Medium
made
Data theft/integrity risks Very low Insurance
Market risks No Demand gap high
Natural calamity and
Low Insurance
physical risks
8.7 Risk Assessment and recommendation for Risk Management
Bakery products are perishable in nature; therefore Material management is

required for avoidance of the wastage.
There is a tough competition in the market so product mix approach is
applicable to this industry. PACS should produce quality products to sustain in
the market.
Proper study of consumer behaviour should be conducted and accordingly
the products can be produced.
The shelf value of these products is very less therefore demand for these
products can be generated through proper advertisement and promotion.
The financing of these types of industries depends on the market factors,
though demand for these products are high but financial institution does not
easily finance these products. The financing agency must be ensured through
a proper business plan.
Page|24
The packaging of product should be attractive. It creates additional demand

for products.
Proper certification of plant is required from the authorities. Food safety
standards should be followed.
Rayson may approach for ISO certification for ensuring the quality standards of
products.
Internal Checklist should be in plant / unit and it must be supervised
periodically.
Waste disposal - The main waste in the bakery unit is of unused dough, fondant,
burnt product. These need to be removed in a timely manner. Dough and
fondant may lead to fungal growth in the manufacturing premises, whereas
burnt product will contaminate the finished product. Waste should be disposed
immediately in covered bins to avoid contamination.
8.8 Project Sensitivity
The Project is highly sensitive to;

Estimated price assumed
Estimated quantity of product and product mix assumed per day
Rate of Products
The Project is moderately sensitive to;

Operating Cost increases
Debt Equity
Page|25
Chapter 9
Conclusion and Funding Proposal
9.0 Conclusion
Rayson Food and Hospitality Private LImited has been conceived with the objective
of setting up of bakery product manufacturing and distribution through own and
outlets as well as through franchisee outlets to the fast-growing population of South
and central Kolkata and the Southern suburbs of the city. At the same time, Rayson
intends to position itself as a reputed organization providing a comprehensive range
of bakery products.
With this objective in mind, Rayson plans to -
1. Provide a comprehensive range of bakery products with assurance of

quality and accuracy
2. Install the latest bakery manufacturing equipment available in the market
3. Distribute its products through own and outlets as well as through franchisee
outlets
4. Provide home delivery for orders beyond a certain amount for the
convenience of consumers.
5. Provide 12-hour outlet services.
Rayson has planned for the actual setting up of the physical infrastructure and
procurement of equipment from various reputed suppliers of equipment and
infrastructure. The yearlong experience of the promoters’ family will ensure that the
project can be set up smoothly within the planned project cost.
It may be mentioned that the principal contributory factors to success would be:
a. Range of products
b. Quality and reliability of products
c. Availability of experienced supervisors and bakery manufacturing
professionals at the manufacturing center
There are 2 Promoters to the project, with mixed professional backgrounds to take
care of different functions of the project.
The cost of the project will be around Rs 150.00 Lakhs. Funding has been assumed
at Debt 80% and Equity 20%.Promoters will Contribute Rs 30.00 Lakhs
The Financial Projections for 6 years were carried out, based on all the Revenue
and Operating Cost exemptions provided in this report. Six (6) years Cash flow
projections and Balance sheets has also been drafted.
Page|26
Given the above factors, and the satisfactory financial parameters of the project,
(based on the reasonable assumptions made), we do not anticipate any un
mitigable major risks to the venture. However, the Project is highly sensitive to the
numbers assumed on sales volume per day and rates of products.
9.1 Funding Proposal
Rayson is looking for a total Loan/Debt financing of Rs 120.00 Lakhs for the project.
The Promoters corresponding Capital contribution is Rs 30.00 Lakhs. Rayson is also
looking for a working capital finance of Rs. 30.00 Lakhs against which promoter’s
contribution @ 25% of Rs. 10.00 lacs have been considered.
Page|27
Chapter 10
Working Capital Assessment (Form-II & Form-III)
ASSESSMENT OF WORKING CAPITAL REQUIREMENTS

FORM - II
OPERATING STATEMENT
2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
Particulars
Estimated Proj Proj Proj Proj Proj
OPERATING CAPACITY
1) REVENUE
a) Gross Sales 287.62 690.29 815.40 951.30 998.87 1,048.81
b) Less: Excise Duty - - - - - -
c) Less: Vat - - - - - -
d) Less: GST - - - - - -
c) Net Sale 287.62 690.29 815.40 951.30 998.87 1,048.81
d) Percentage rise (+) or fall in sales
as compared to previous year - 140.00 18.13 16.67 5.00 5.00
e) Other Income - - - - - -
f) Total Revenue (c+e) 287.62 690.29 815.40 951.30 998.87 1,048.81
2. EXPENDITURE
I) Raw Material Consumption 86.29 207.09 244.62 285.39 299.66 314.64
ii) Power & Fuel 18.00 37.80 39.69 41.67 43.76 45.95
iii) Direct Labour 48.36 101.56 106.63 111.97 117.56 123.44
iv) Other Manufacturing & Operating Expenses 0.60 1.20 1.20 1.20 1.20 1.20
vi) Sub-Total 153.25 347.64 392.14 440.23 462.18 485.23
3. GROSS PROFIT 134.37 342.65 423.26 511.07 536.69 563.58

% Gross Profit 0.47 0.50 0.52 0.54 0.54 0.54
4. EMPLOYEE COST(other managerial & Admn staff) - - - - - -

5. SELLING,ADM.& MISC EXP. 0.58 1.11 1.16 1.21 1.27 1.33
6. OPERATING PROFIT(before int. & dep.) 133.79 341.54 422.10 509.86 535.42 562.25
(I(iii)-2(vii)-3)
Interest on Term Loan 4.83 12.03 10.20 7.65 4.85 1.77
7. Interest on Working Capital Loan 3.00 3.00 3.00 3.00 3.00 3.00
Other - - - - - -
8. Depreciation 27.15 22.24 18.21 14.91 12.22 10.00
9. OPERATING PROFIT (after int. & 98.82 304.27 390.69 484.30 515.36 547.48
depreciation)
10. i) ADD : Other non-operating income
a) Non Operating Income - - - - - -
b) Income from Fixed Deposit - - - - - -
c) Sub-Total (INCOME) - - - - - -
ii) LESS : Other non-operating Exps
a) Amortisation of Preliminary Exp. - - - - - -
b) Other Non Operating Expenses - - - - - -
c) Sub-Total (EXPENSES) - - - - - -
iii) Net of other non-operating income/ - - - - - -

expenses ( net of 8(I) & 8(ii)
11. PROFIT BEFORE TAX 98.82 304.27 390.69 484.30 515.36 547.48
12. PROVISION FOR TAXES 10.01 42.24 58.82 76.77 82.38 88.15
13. NET PROFIT (+)/ LOSS (-) 88.81 262.03 331.87 407.53 432.98 459.33
14. Dividend - - - - - -
15. RETAINED PROFIT 88.81 262.03 331.87 407.53 432.98 459.33
16. RETAINED PROFIT % 100.00 100.00 100.00 100.00 100.00 100.00
17. NET PROFIT PERCENTAGE 30.88 37.96 40.70 42.84 43.35 43.80
18. INTEREST COVERAGE RATIO 17.10 22.72 31.98 47.88 68.23 117.92
ANALYSIS OF BALANCE SHEET
FORM - III
Particulars 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
CURRENT LIABILITIES
1. Short-term borrowing from banks (incl.
bill purchased, discounted & excess
borrowings on repayment basis)
a) From applicant Bank 30.00 30.00 30.00 30.00 30.00 30.00
b) From other Banks - - - - - -
c) ( of which BP & BD )
SUB-TOTAL (A) 30.00 30.00 30.00 30.00 30.00 30.00
2. Short term borrowings from others - - - - - -
3. Sundry Creditors (Trade) 2.48 5.96 7.04 8.21 8.62 9.05
(month's purchase)
4. Advance payment from customers/ - - - - - -
deposits from dealers
5. Provision for taxation 10.01 42.24 58.82 76.77 82.38 88.15
6. Dividend payable - - - - - -
7. Other statut. liability(due within 1 yr) - - - - - -
8. Deposits/Debenture/Investment under
term loans/DPCs, etc. (due within1 yr) - - - - - -
9. Other current liabilities & provisions 22.48 47.23 50.12 53.18 55.57 58.07
( Due within 1yr)(specify major items)
S UB-TOTAL (B) 34.97 95.43 115.97 138.16 146.57 155.28
10. TOTAL CURRENT LIABILITIES 64.97 125.43 145.97 168.16 176.57 185.28
11. Debentures (not maturing within 1yr) - - - - - -
12. Preference Shares (redeem. after1 yr) - - - - - -
13. Term Loans (excldg. Investment
Payable within one year) 124.83 118.92 93.23 65.00 33.97 -
14. Deferred Payment Credits (excluding - - - - - -

instalments due within one year)
15. Term deposits (repayableafter 1 yr) - - - - - -
16. Advances from customers - - - - - -
17. TOTAL TERM LIABILITIES (11 to16) 124.83 118.92 93.23 65.00 33.97 -
18. TOTAL OUTSIDE LIABILITIES(10+17) 189.80 244.34 239.20 233.16 210.54 185.28
19. Share Capital (including Share Premium) 30.00 30.00 30.00 30.00 30.00 30.00
20. Reserves 30.03 156.75 327.20 551.51 792.65 1,051.11
21. Quasi Equity /Unsecured Loan 10.00 10.00 10.00 10.00 10.00 10.00
22. Share Application Money - - - - - -
23. Surplus (+) or Deficit (-) in P & L a/c 88.81 262.03 331.87 407.53 432.98 459.33
24. NET WORTH 158.84 458.78 699.07 999.03 1,265.62 1,550.44
25. TOTAL LIABILITIES (18+24) 348.63 703.13 938.28 1,232.20 1,476.16 1,735.71
ANALYSIS OF BALANCE SHEET

FORM - III
Particulars 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
26. Cash & Bank Balances 57.17 170.60 272.23 407.12 545.13 692.62
27. Investments (Other than long term inv.)
I) Government & other trust Securities 0.00 0.00 0.00 0.00 0.00 0.00
ii) Fixed Deposits with Banks 0.00 0.00 0.00 0.00 0.00 0.00
28. I) Receivables other than deff. & export 16.55 39.72 46.91 54.73 57.47 60.34
(incld. Bills purchased by bankers)
ii) Export Receivables (incld. Bills
Purchased/discounted by bankers) 0.00 0.00 0.00 0.00 0.00 0.00
29. Instalments under deffered receivables
( due within one year ) 0.00 0.00 0.00 0.00 0.00 0.00
30. A) Stock of Raw Materials 0.00 0.00 0.00 0.00 0.00 0.00
B) Stock of Finished Goods 3.55 8.51 10.05 11.73 12.31 12.93
C) Stock of Consumables/Packing Material 0.00 0.00 0.00 0.00 0.00 0.00
D) Work In Progress 0.00 0.00 0.00 0.00 0.00 0.00
31. Advances to suppliers of merchandise 0.00 0.00 0.00 0.00 0.00 0.00
32. Advance payment of taxes 10.01 42.24 58.82 76.77 82.38 88.15
33. Other current assets 47.22 73.46 128.95 198.62 282.00 368.02
34. TOTAL CURRENT ASSETS(26 to 33) 134.49 334.53 516.96 748.97 979.30 1222.07
FIXED ASSETS 150.00 150.00 150.00 150.00 150.00 150.00
'35. Gross Block 150.00 150.00 150.00 150.00 150.00 150.00
36. Depreciation on date 27.15 49.39 67.60 82.51 94.73 104.73
37. NET BLOCK (35-36) 122.85 100.61 82.40 67.49 55.27 45.27
38. Investments/book-debts/advances/
deposits which are not current assets
I) a) Investments in subsidiary 0.00 0.00 0.00 0.00 0.00 0.00
Companies affiliates
b) Others 0.00 0.00 0.00 0.00 0.00 0.00
ii) Advances For capital goods
& contractors 0.00 0.00 0.00 0.00 0.00 0.00
iii) Defferred receivables (excldg. 1 year) 0.00 0.00 0.00 0.00 0.00 0.00
iv) Security deposits/tender deposits 0.00 0.00 0.00 0.00 0.00 0.00
v) Others 0.00 0.00 0.00 0.00 0.00 0.00
39. Obsolete stocks 0.00 0.00 0.00 0.00 0.00 0.00
40. Other non-current assets 0.00 0.00 0.00 0.00 0.00 0.00
41. TOTAL OTHER NON-CURR. ASSETS 0.00 0.00 0.00 0.00 0.00 0.00
(total of 38 to 40)
42. Intangible Assets ( patents, goodwill,
Preliminary exp.,etc.) 0.00 0.00 0.00 0.00 0.00 0.00
43. TOTAL ASSETS (34+37+41+42) 348.63 703.13 938.28 1232.20 1476.16 1735.71
44. TANGIBLE NET WORTH (24 - 42) 158.84 458.78 699.07 999.03 1265.62 1550.44
45. NET WORKING CAPITAL (34-10) 69.52 209.10 370.99 580.81 802.73 1036.79
46. CURRENT RATIO (34/10) 2.07 2.67 3.54 4.45 5.50 6.55
47. TOTAL OUTSIDE LIABILITIES/
TANGIBLE NET WORTH (18/44) 1.19 0.53 0.34 0.23 0.17 0.12
COMPARATIVE STATEMENT OF CURRENT ASSETS AND CURRENT LIABILITIES
FORM - IV
Particulars 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
1. A) Stock of Raw Material 0.00 0.00 0.00 0.00 0.00 0.00

(Months' holding - 60 days)
B) Stock of Finished Goods 3.55 8.51 10.05 11.73 12.31 12.93
(Months' holding - 15 days )
C) Stock of Consumables/Packing Material 0.00 0.00 0.00 0.00 0.00 0.00
(Months' holding - 1 Month)
D) Stock of W.I.P. 0.00 0.00 0.00 0.00 0.00 0.00
2. Receivables other than export and 16.55 39.72 46.91 54.73 57.47 60.34
deferred receivables (including bills
purchased and discounted)
(Months' Sales - 15 days )
3. Export receivables (including bills 0.00 0.00 0.00 0.00 0.00 0.00
purchased and disounted)
(Months' Sales - 30 days )
4. Advances to suppliers of merchandise 0.00 0.00 0.00 0.00 0.00 0.00
5. Other current assets (including cash 114.40 286.30 460.00 682.51 909.52 1148.79
& Bank & deferred receivables due
within 1 yr) (specify major items)
6. TOTAL CURRENT ASSETS 134.49 334.53 516.96 748.97 979.30 1222.07
(To agree with 34 in form - III)
B. CURRENT LIABILITIES
(Other than bank borrowings for W. Cap)
7. Sundry Creditors (Trade) 2.48 5.96 7.04 8.21 8.62 9.05
(Months' purchases - 15 days)
8. Advance payments from customers/ 0.00 0.00 0.00 0.00 0.00 0.00
deposits from dealers
9. Statutory Liabilities 10.01 42.24 58.82 76.77 82.38 88.15
10. Other Current Liabilities(specify items 22.48 47.23 50.12 53.18 55.57 58.07
as short borrowing, unsecured loans,
dividend payable, instalments of TL,
DPGs, Pub. Deposits, Debenture, etc.
11. TOTAL 34.97 95.43 115.97 138.16 146.57 155.28
( To agree with sub-total B of Form-III )
COMPUTATION OF MAXIMUM PERMISSIBLE BANK FINANCE FOR WORKING CAPITAL

FORM -V
Particulars 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
1. TOTAL CURRENT ASSETS 134.49 334.53 516.96 748.97 979.30 1222.07

2. Current Liabilities (2 to 9 of Form III) 34.97 95.43 115.97 138.16 146.57 155.28
(Other than bank borrowings)
3. Working Capital Gap (WCG) (1-2) 99.52 239.10 400.99 610.81 832.73 1066.79
4. Min. Stipulated Net Working Capital 25%
of total current assets other than Export
Receivables (as at 28(ii) of Form III ) 33.62 83.63 129.24 187.24 244.82 305.52
5. Actual/projected net working capital
( 45 in Form III ) 69.52 209.10 370.99 580.81 802.73 1036.79
6. Item 3 minus item 4 65.90 155.47 271.75 423.57 587.90 761.27

7. Item 3 minus item 5 30.00 30.00 30.00 30.00 30.00 30.00
8. Maximum permissible Bank Finance
( Item 6 or 7 whichever is lower ) 30.00 30.00 30.00 30.00 30.00 30.00
9. EXCESS BORROWINGS, IF ANY
REPRESENTING SHORT FALL IN NWC 0.00 0.00 0.00 0.00 0.00 0.00
FUND FLOW STATEMENT

FORM - VI
Particulars 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
1. SOURCES
a) Net profit (after tax) 88.81 262.03 331.87 407.53 432.98 459.33
b) Depreciation & Amortisation 27.15 22.24 18.21 14.91 12.22 10.00
c) Increase in Capital & Quasi Capital 40.00 40.00 40.00 40.00 40.00 40.00
d) Decrease in :
I) Fixed Assets 0.00 0.00 0.00 0.00 0.00 0.00
ii) Other Non-current Assets 0.00 0.00 0.00 0.00 0.00 0.00
e) Others 0.00 0.00 0.00 0.00 0.00 0.00
f) TOTAL 155.96 324.27 390.09 462.44 485.19 509.33
2. USES
a) Net Loss 0.00 0.00 0.00 0.00 0.00 0.00
b) Decrease in Term Liabilities 0.00 0.00 0.00 0.00 0.00 0.00
(including Defferred Payment Liability) -124.83 -118.92 -93.23 -65.00 -33.97 0.00
c) Increase in :
I) Fixed Assets 150.00 150.00 150.00 150.00 150.00 150.00
ii) Other Non-current Assets 0.00 0.00 0.00 0.00 0.00 0.00
d) Dividend 0.00 0.00 0.00 0.00 0.00 0.00
e) Others 1.00 2.00 3.00 4.00 5.00 5.00
f) TOTAL 26.17 33.08 59.77 89.00 121.03 155.00
3. LONG TERM SURPLUS 129.79 291.18 330.32 373.45 364.16 354.33
4. Increase/decrease in current assets 134.49 334.53 516.96 748.97 979.30 1222.07
(as per details given )
5. Increase/decrease in current Liabilities 34.97 95.43 115.97 138.16 146.57 155.28
other than Bank Borrowings
6. Increase/Decrease in working capital gap 99.52 239.10 400.99 610.81 832.73 1066.79
7. Net Surplus (+) Deficit (-) (3-6) 30.27 52.08 -70.67 -237.37 -468.57 -712.46
8. Increase/decrease in Bank borrowings 30.00 30.00 30.00 30.00 30.00 30.00
INCREASE/DECREASE IN NET SALES

TEV Report-Rayson Food Final 27.08.2020

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TEV Report-Rayson Food Final 27.08.2020

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TECHNO ECONOMIC VIABILITY STUDY

BAKERY UNIT BY RAYSON FOOD AND HOSPITALITY PRIVATE LIMITED

Prepared By:Basu & Basu

10/1/N, Swinhoe Street,

5.3 Financing Assumptions 14

5.4 Summary Project Cost assumed 14

5.5 Summary of Project Financing assumed 15

5.6 Summary of Working Capital Financing assumed 15

6 Key Operational Assumptions 16

6.0 Installed Capacity and Capacity Utilization 16

6.1 Revenue assumptions 16

7 Operating Expenses Assumptions 18

7.0 Lease Rental 18

7.1 Manpower costs 18

7.2 Other Operating Cost Assumptions 18

7.3 Depreciation & Tax rates 19

7.4 Working Capital assumptions 19

8 Financials & Returns 20

8.1 Profitability projections for 6 years 20

8.2 Cash Flow Statements for 6 years 21

8.3 Balance Sheet for 6 years 22

8.4 Financial Ratios for 6 years 23

8.5 Project Returns 24

8.6 Project Risks 24

8.7 Risk Assessment and recommendation for Risk Management 24

8.8 Project Sensitivity 25

9 Conclusion and Funding Proposal 26

9.1 Funding Proposal 27

10 Working Capital Assessment ( Form-II & Form-III) 28

List of Tables & Annexures

Rayson Food and Hospitality Private Limited is a

Rayson Food and Hospitality Private Limited

The promoters and partners of the Project are:

Full Name: Mr. Raymond Das

Full Name: Mrs. Monisha Das

Full Name: Mr. Dennis Das

2.2 Project Location

• Car parking: 2 spaces

2.3 Location Advantages:

2.4 SWOT Analysis of the Project

The food habit of low and medium income Technology Up gradation.

3.1 Market Size

3.3 Assessment of Local Demand

4.0 Organization Structure

4.2 Project Implementation

5.0 Leased space

5.1 Estimated Project Costs

The project cost estimate is detailed below:

Amount GST Suppliers

2 Pound Bread Mould Nos. 72 670 48,240 8,683 56,923 S. R. Udyog

1/2 Pound Nos. 200 460 92,000 16,560 1,08,560 -Do-

2 Plant & Equipment’s:

Mixing & Preparation Room Nos. - - 19,20,000 3,45,600 22,65,600 -Do-

3 Civil Work & Interiors-Outlet 1:

False Ceiling Sq. Ft. 460 100 46,000 - 46,000 -Do-

False Ceiling-Laminated Sq. Ft. 100 400 40,000 - 40,000 -Do-

Doors Nos. 1 26,000 26,000 - 26,000 -Do-

4 Civil Work & Interiors-Outlet 2: -Do-

Partitions Sq. Ft. 140 550 77,000 - 77,000 -Do-

False Ceiling Sq. Ft. 460 140 64,400 - 64,400 -Do-

False Ceiling-Laminated Sq. Ft. 140 520 72,800 - 72,800 -Do-

Doors Nos. 1 26,000 26,000 - 26,000 -Do-

Expenditure on Marketing & Other

6 Computers & Accessories: