PROJECT REPORT OF

PARSHURAM FURNITURE

INDEX
SR.
NO. PARTICULARS PG NO

1 INTRODUCTION TO PROJECT & PROMOTOR 1

2 COST OF PROJECT AND MEANS OF FINANCE 2
3 PROJECTED PROFITABILITY STATEMENT 3
4 COMPUTATION OF D.S.C.R. 4
5 PROJECTED CASH FLOW STATEMENT 5
6 PROJECTED BALANCE SHEET 6
7 RATIO ANALYSIS 7
8 INTEREST & REPAYMENT OF TERM LOAN 8,9
9 INTEREST & REPAYMENT OF TERM LOAN 10,11
 PROJECT PROFILE
PG2

PARTICULARS AMOUNT AMOUNT

COST OF PROJECT :

1 Furniture

2 Machinery

3 Working Capital(Stock) 4,80,000

TOTAL 4,80,000

MEANS OF FINANCE

1. Proprietor's Own Capital 5.00% 24,000

2. Term Loan from MPBCDC 20.00% 96,000
3. Term Loan From NSFDC 75.00% 3,60,000

TOTAL 4,80,000
 FINANCIAL PROJECTION :
PROJECTED PROFITABILITY STATEMENT :
PG 3
YEARS OF PROJECTIONS
PARTICULARS
1 2 3 4 5

Gross Sale 20,38,400 21,40,320 22,47,336 23,59,703 24,77,688

EXPENSES :
Goods Purchased 13,24,960 13,91,208 14,60,768 15,33,807 16,10,497
Salary & Wages 1,20,000 1,26,000 1,32,300 1,38,915 1,45,861
Travelling Exp 14,720 16,192 17,811 19,592 21,552
Misc Exp 50,000 50,000 50,000 50,000 50,000
Insurance Exps. 9,000 9,900 10,890 11,979 13,177
Light Bill Exps. 18,720 20,592 22,651 24,916 27,408
Interest NSFDC 19,620 15,300 10,980 6,660 2,340
Interest MPBCDC 5,232 4,080 2,928 1,776 624
TOTAL EXPENSES 15,62,252 16,33,272 17,08,329 17,87,645 18,71,458
Interest MPBCDC
Net Profit 4,76,148 5,07,048 5,39,007 5,72,057 6,06,230

Income Tax 22,615 26,410 32,801 39,411 46,246

NET PROFIT AFTER TAX 4,53,533 4,80,638 5,06,206 5,32,646 5,59,984

CALCULATION OF DEBT SERVICE COVERAGE RATIO
PG 4
PARTICULARS YEARS
1st 2nd 3rd 4th 5th
COVER AVAILABLE
1 Net Profit after tax 4,53,533 4,80,638 5,06,206 5,32,646 5,59,984
2 Add: depreciation
3 Interest NSFDC 19,620 15,300 10,980 6,660 2,340
4 Interest MPBCDC 5,232 4,080 2,928 1,776 624
4,78,385 5,00,018 5,20,114 5,41,082 5,62,948

SERVICE OBLIGATION
1 Interest NSFDC 19,620 15,300 10,980 6,660 2,340
2 NSFDC Term Loan Instalment 72,000 72,000 72,000 72,000 72,000
3 Interest MPBCDC 5,232 4,080 2,928 1,776 624
4 mpbcdc Loan Instalment 19,200 19,200 19,200 19,200 19,200

1,16,052 1,10,580 1,05,108 99,636 94,164

D.S.C.R. 4.12 4.52 4.95 5.43 5.98

AVERAGE D.S.C.R. 5.00

 PG 5

PROJECTED CASH FLOW STATEMENT

PARTICULARS Starting YEARS

1st 2nd 3rd 4th 5th
INFLOW OF FUND

Increase in Share capital 24,000

Increase in TL NSFDC 3,60,000

Increase in TL MPBCDC 96,000

Net Profit after Tax 4,53,533 4,80,638 5,06,206 5,32,646 5,59,984

Depreciation - - - - -

TOTAL SOURCES 4,80,000 4,53,533 4,80,638 5,06,206 5,32,646 5,59,984

OUTFLOW OF FUND

Increase in Capital Exp. -

Increase in Inventories 4,80,000 15,000 16,500 18,150 19,965 21,962

Increase in receivable 1,15,660 1,27,226 1,39,949 1,53,943 1,69,338

Term Loan repayment 72,000 72,000 72,000 72,000 72,000

Term Loan repayment 19,200 19,200 19,200 19,200 19,200

Promotor Withdrawal 1,20,000 1,20,000 1,20,000 1,20,000 1,20,000

Increase in Current assets

TOTAL DISPOSITION 4,80,000 3,41,860 3,54,926 3,69,299 3,85,108 4,02,499

Opening Balance - - 1,11,673 2,37,386 3,74,293 5,21,830

Net Surplus - 1,11,673 1,25,712 1,36,907 1,47,537 1,57,484

Closing Balance - 1,11,673 2,37,386 3,74,293 5,21,830 6,79,315

 PG 6

PROJECTED BALANCE SHEET AT THE END OF

PARTICULARS Starting 1ST 2ND 3RD 4TH 5TH

A)Capital and Liabilities:
Equity/Capital 24,000 24,000 24,000 24,000 24,000 24,000

Reserves/Surplus 3,33,533 6,94,172 10,80,377 14,93,023 19,33,007

Term Loan NSFDC 3,60,000 2,88,000 2,16,000 1,44,000 72,000 -

Term Loan MPBCDC 96000 76,800 57,600 38,400 19,200 0

TOTAL 7,22,333 9,91,772 12,86,777 16,08,223 19,57,007

B) Fixed Assets
Gross Block - - - - - -
Depreciation - - - - - -
Net Block - - - - - -
C)Current Assets
Inventories 4,80,000 4,95,000 5,11,500 5,29,650 5,49,615 5,71,577
Receivables 1,15,660 2,42,886 3,82,835 5,36,778 7,06,116
Other current assets - - - - -
cash/Bank balance - 1,11,673 2,37,386 3,74,293 5,21,830 6,79,315

TOTAL 7,22,333 9,91,772 12,86,777 16,08,223 19,57,007

- - - - -
 PG 7

RATIO ANALYSIS FOR THE PROJECT

PARTICULARS Starting YEAR
1st 2nd 3rd 4th 5th
A DEBT EQUITY RATIO
Long Term Debt 3,64,800 2,73,600 1,82,400 91,200 -
Capital Employed 3,57,533 7,18,172 11,04,377 15,17,023 19,57,007
1.02 0.38 0.17 0.06 -

B CURRENT RATIO
Current Assets 7,22,333 9,91,772 12,86,777 16,08,223 19,57,007
Current Liabilities - - - - -
- - - - -
C NET PROFIT RATIO
Net Profit before Tax 4,53,533 4,80,638 5,06,206 5,32,646 5,59,984
Sales 20,38,400 21,40,320 22,47,336 23,59,703 24,77,688
22.2 22.5 22.5 22.6 22.6
Term Loan Amount : 3,60,000.00 PG 8
Rate of Interest : 6.00%
Repayment : 60 Monthly Instalment

Year Months Principal Repayment Closing Bal. Interest

1 1 3,60,000.00 6,000.00 3,54,000.00 1,800.00

2 3,54,000.00 6,000.00 3,48,000.00 1,770.00
3 3,48,000.00 6,000.00 3,42,000.00 1,740.00
4 3,42,000.00 6,000.00 3,36,000.00 1,710.00
5 3,36,000.00 6,000.00 3,30,000.00 1,680.00
6 3,30,000.00 6,000.00 3,24,000.00 1,650.00
7 3,24,000.00 6,000.00 3,18,000.00 1,620.00
8 3,18,000.00 6,000.00 3,12,000.00 1,590.00
9 3,12,000.00 6,000.00 3,06,000.00 1,560.00
10 3,06,000.00 6,000.00 3,00,000.00 1,530.00
11 3,00,000.00 6,000.00 2,94,000.00 1,500.00
12 2,94,000.00 6,000.00 2,88,000.00 1,470.00
72,000.00 19,620

Year Months Principal Repayment Closing Bal. Interest

2 1 2,88,000.00 6,000.00 2,82,000.00 1,440.00

2 2,82,000.00 6,000.00 2,76,000.00 1,410.00
3 2,76,000.00 6,000.00 2,70,000.00 1,380.00
4 2,70,000.00 6,000.00 2,64,000.00 1,350.00
5 2,64,000.00 6,000.00 2,58,000.00 1,320.00
6 2,58,000.00 6,000.00 2,52,000.00 1,290.00
7 2,52,000.00 6,000.00 2,46,000.00 1,260.00
8 2,46,000.00 6,000.00 2,40,000.00 1,230.00
9 2,40,000.00 6,000.00 2,34,000.00 1,200.00
10 2,34,000.00 6,000.00 2,28,000.00 1,170.00
11 2,28,000.00 6,000.00 2,22,000.00 1,140.00
12 2,22,000.00 6,000.00 2,16,000.00 1,110.00
72,000.00 15,300

Year Months Principal Repayment Closing Bal. Interest

3 1 2,16,000.00 6,000.00 2,10,000.00 1,080.00

2 2,10,000.00 6,000.00 2,04,000.00 1,050.00
3 2,04,000.00 6,000.00 1,98,000.00 1,020.00
4 1,98,000.00 6,000.00 1,92,000.00 990.00
5 1,92,000.00 6,000.00 1,86,000.00 960.00
6 1,86,000.00 6,000.00 1,80,000.00 930.00
7 1,80,000.00 6,000.00 1,74,000.00 900.00
8 1,74,000.00 6,000.00 1,68,000.00 870.00
9 1,68,000.00 6,000.00 1,62,000.00 840.00
10 1,62,000.00 6,000.00 1,56,000.00 810.00
11 1,56,000.00 6,000.00 1,50,000.00 780.00
12 1,50,000.00 6,000.00 1,44,000.00 750.00
72,000 10,980.00
 PG 9

Year Months Principal Repayment Closing Bal. Interest

4 1 1,44,000.00 6,000.00 1,38,000.00 720.00

2 1,38,000.00 6,000.00 1,32,000.00 690.00
3 1,32,000.00 6,000.00 1,26,000.00 660.00
4 1,26,000.00 6,000.00 1,20,000.00 630.00
5 1,20,000.00 6,000.00 1,14,000.00 600.00
6 1,14,000.00 6,000.00 1,08,000.00 570.00
7 1,08,000.00 6,000.00 1,02,000.00 540.00
8 1,02,000.00 6,000.00 96,000.00 510.00
9 96,000.00 6,000.00 90,000.00 480.00
10 90,000.00 6,000.00 84,000.00 450.00
11 84,000.00 6,000.00 78,000.00 420.00
12 78,000.00 6,000.00 72,000.00 390.00
72,000 6,660

Year Months Principal Repayment Closing Bal. Interest

5 1 72,000.00 6,000.00 66,000.00 360.00

2 66,000.00 6,000.00 60,000.00 330.00
3 60,000.00 6,000.00 54,000.00 300.00
4 54,000.00 6,000.00 48,000.00 270.00
5 48,000.00 6,000.00 42,000.00 240.00
6 42,000.00 6,000.00 36,000.00 210.00
7 36,000.00 6,000.00 30,000.00 180.00
8 30,000.00 6,000.00 24,000.00 150.00
9 24,000.00 6,000.00 18,000.00 120.00
10 18,000.00 6,000.00 12,000.00 90.00
11 12,000.00 6,000.00 6,000.00 60.00
12 6,000.00 6,000.00 0.00 30.00
72,000 2,340.00

0 0.00
mpcdc MONEY LOAN : 96,000.00 PG 10
Rate of Interest : 6.00%
Repayment : 60 Monthly Instalment

Year Months Principal Repayment Closing Bal. Interest

1 1 96,000.00 1,600.00 94,400.00 480.00

2 94,400.00 1,600.00 92,800.00 472.00
3 92,800.00 1,600.00 91,200.00 464.00
4 91,200.00 1,600.00 89,600.00 456.00
5 89,600.00 1,600.00 88,000.00 448.00
6 88,000.00 1,600.00 86,400.00 440.00
7 86,400.00 1,600.00 84,800.00 432.00
8 84,800.00 1,600.00 83,200.00 424.00
9 83,200.00 1,600.00 81,600.00 416.00
10 81,600.00 1,600.00 80,000.00 408.00
11 80,000.00 1,600.00 78,400.00 400.00
12 78,400.00 1,600.00 76,800.00 392.00
19,200.00 5,232

Year Months Principal Repayment Closing Bal. Interest

2 1 76,800.00 1,600.00 75,200.00 384.00

2 75,200.00 1,600.00 73,600.00 376.00
3 73,600.00 1,600.00 72,000.00 368.00
4 72,000.00 1,600.00 70,400.00 360.00
5 70,400.00 1,600.00 68,800.00 352.00
6 68,800.00 1,600.00 67,200.00 344.00
7 67,200.00 1,600.00 65,600.00 336.00
8 65,600.00 1,600.00 64,000.00 328.00
9 64,000.00 1,600.00 62,400.00 320.00
10 62,400.00 1,600.00 60,800.00 312.00
11 60,800.00 1,600.00 59,200.00 304.00
12 59,200.00 1,600.00 57,600.00 296.00
19,200.00 4,080

Year Months Principal Repayment Closing Bal. Interest

3 1 57,600.00 1,600.00 56,000.00 288.00

2 56,000.00 1,600.00 54,400.00 280.00
3 54,400.00 1,600.00 52,800.00 272.00
4 52,800.00 1,600.00 51,200.00 264.00
5 51,200.00 1,600.00 49,600.00 256.00
6 49,600.00 1,600.00 48,000.00 248.00
7 48,000.00 1,600.00 46,400.00 240.00
8 46,400.00 1,600.00 44,800.00 232.00
9 44,800.00 1,600.00 43,200.00 224.00
10 43,200.00 1,600.00 41,600.00 216.00
11 41,600.00 1,600.00 40,000.00 208.00
12 40,000.00 1,600.00 38,400.00 200.00
19,200 2,928.00
 PG 11

Year Months Principal Repayment Closing Bal. Interest

4 1 38,400.00 1,600.00 36,800.00 192.00

2 36,800.00 1,600.00 35,200.00 184.00
3 35,200.00 1,600.00 33,600.00 176.00
4 33,600.00 1,600.00 32,000.00 168.00
5 32,000.00 1,600.00 30,400.00 160.00
6 30,400.00 1,600.00 28,800.00 152.00
7 28,800.00 1,600.00 27,200.00 144.00
8 27,200.00 1,600.00 25,600.00 136.00
9 25,600.00 1,600.00 24,000.00 128.00
10 24,000.00 1,600.00 22,400.00 120.00
11 22,400.00 1,600.00 20,800.00 112.00
12 20,800.00 1,600.00 19,200.00 104.00
19,200 1,776

Year Months Principal Repayment Closing Bal. Interest

5 1 19,200.00 1,600.00 17,600.00 96.00

2 17,600.00 1,600.00 16,000.00 88.00
3 16,000.00 1,600.00 14,400.00 80.00
4 14,400.00 1,600.00 12,800.00 72.00
5 12,800.00 1,600.00 11,200.00 64.00
6 11,200.00 1,600.00 9,600.00 56.00
7 9,600.00 1,600.00 8,000.00 48.00
8 8,000.00 1,600.00 6,400.00 40.00
9 6,400.00 1,600.00 4,800.00 32.00
10 4,800.00 1,600.00 3,200.00 24.00
11 3,200.00 1,600.00 1,600.00 16.00
12 1,600.00 1,600.00 0.00 8.00
19,200 624.00

0 0.00