M/s Pankaj Shah

PROJECT REPORT FOR M/S PANKAJ SHAH

I. GENERAL INFORMATION :

A. Name of the Firm :

B. Offie Address :

C. Factory Address :

D. Nature Of Business :

E Constitution :

F Name of the Proprietor :

 M/s Pankaj Shah

COST OF PROJECT :

Cost of Project are estimated at Rs.21.50 lac which is calaulated as under :

Nature of Cost : Existing Proposed Total

Land - - -
Construction - - -
Plant & Machinery ( Imported) - 21.50 21.50
Plant & Machinery (Indegeneous) - - -
Computer -
AC & CVT -
Working Capital - -
Other Assets - -
Capital Cost of Project - 21.50 21.50

21.50

Source of Funds :

Proprietor's Capital - 5.38 5.38

Term Loan From Banks 16.12 16.12
Unsecured Loan -

- 21.50 21.50
M/s Pankaj Shah
Plant & Machinery :

Name of Machine ?????/ 2 9.90

2 11.60

Total 21.50
 M/S Pankaj Shah
Computation of Depreciation for Books of Accounts : (Rs. in Lacs)

First Year :
Nature of Assets W.D.V Purchases Sales Total Rate Dep Closing
W.D.V.

Construction - - - - 10% - -
Plant & Machinery (Imp) - 21.50 - 21.50 15% 1.61 19.89
Plant & Machi(Indege) - - - - 25% - -
Computer - - - - 60% - -
A.C. & C.V.T. - - - - 15% - -
Other Assets - - - 15% - -

- 21.50 - 21.50 1.61 19.89

Second Year :
Nature of Assets W.D.V Purchases Sales Total Rate Dep Closing
W.D.V.

Construction - - - - 10% - -
Plant & Machinery (Imp) 19.89 - - 19.89 15% 2.98 16.90
Plant & Machi(Indege) - - - - 25% - -
Computer - - - - 60% - -
A.C. & C.V.T. - - - - 15% - -
Other Assets - - - - 15% - -

19.89 - - 19.89 2.98 16.90

Third Year :
Nature of Assets W.D.V Purchases Sales Total Rate Dep Closing
W.D.V.

Construction - - - - 10% - -
Plant & Machinery (Imp) 16.90 - - 16.90 15% 2.54 14.37
Plant & Machi(Indege) - - - - 25% - -
Computer - - - - 60% - -
A.C. & C.V.T. - - - - 15% - -
Other Assets - - - - 15% - -

16.90 - - 16.90 2.54 14.37

 M/S Pankaj Shah

Fourth Year :
Nature of Assets W.D.V Purchases Sales Total Rate Dep Closing
W.D.V.

Construction - - - - 10% - -
Plant & Machinery (Imp) 14.37 - - 14.37 15% 2.16 12.21
Plant & Machi(Indege) - - - - 25% - -
Computer - - - - 60% - -
A.C. & C.V.T. - - - - 15% - -
Other Assets - - - - 15% - -

14.37 - - 14.37 2.16 12.21

Fifth Year :
Nature of Assets W.D.V Purchases Sales Total Rate Dep Closing
W.D.V.

Construction - - - - 10% - -
Plant & Machinery (Imp) 12.21 - - 12.21 15% 1.83 10.38
Plant & Machi(Indege) - - - - 25% - -
Computer - - - - 60% - -
A.C. & C.V.T. - - - - 15% - -
Other Assets - - - - 15% - -

12.21 - - 12.21 1.83 10.38

Sixth Year :
Nature of Assets W.D.V Purchases Sales Total Rate Dep Closing
W.D.V.

Construction - - - - 10% - -
Plant & Machinery (Imp) 10.38 - - 10.38 15% 1.56 8.82
Plant & Machi(Indege) - - - - 25% - -
Computer - - - - 60% - -
A.C. & C.V.T. - - - - 15% - -
Other Assets - - - - 15% - -

10.38 - - 10.38 1.56 8.82

 M/S Pankaj Shah
Calculation of interest on Bank Loan : Under CLCS Scheme

Loan Amount Interest Interest Towards Total Balance

Rate for 3 month Principal Instalment Due
1st 1st Quar. - 15.00% - - - -
Year 2nd Quar. 15.00% - - - -
3rd quar. 16.12 15.00% 0.40 0.40 16.12
4th quar 16.12 15.00% 0.60 0.81 1.41 15.31

Total 1.01 0.81 1.82

2nd 1st Quar. 15.31 15.00% 0.57 0.81 1.38 14.50

Year 2nd Quar. 14.50 15.00% 0.54 0.81 1.35 13.69
3rd quar. 13.69 15.00% 0.51 0.81 1.32 12.88
4th quar 12.88 15.00% 0.48 0.81 1.29 12.07

Total 2.11 3.24 5.35

3rd 1st Quar. 12.07 15.00% 0.45 0.81 1.26 11.26

Year 2nd Quar. 11.26 15.00% 0.42 0.81 1.23 10.45
3rd quar. 10.45 15.00% 0.39 0.81 1.20 9.64
4th quar 9.64 15.00% 0.36 0.81 1.17 8.83

Total 1.63 3.24 4.87

4th 1st Quar. 8.83 15.00% 0.33 0.81 1.14 8.02

Year 2nd Quar. 8.02 15.00% 0.30 0.81 1.11 7.21
3rd quar. 7.21 15.00% 0.27 0.81 1.08 6.40
4th quar 6.40 15.00% 0.24 0.81 1.05 5.59

Total 1.14 3.24 4.38

5th 1st Quar. 5.59 15.00% 0.21 0.81 1.02 4.78

Year 2nd Quar. 4.78 15.00% 0.18 0.81 0.99 3.97
3rd quar. 3.97 15.00% 0.15 0.81 0.96 3.16
4th quar 3.16 15.00% 0.12 0.81 0.93 2.35

Total 0.66 3.24 3.90

6TH 1st Quar. 2.35 15.00% 0.09 0.81 0.90 1.54

Year 2nd Quar. 1.54 15.00% 0.06 0.81 0.87 0.73
3rd quar. 0.73 15.00% 0.03 0.73 0.76 (0.00)
4th quar (0.00) 15.00% (0.00) - (0.00) (0.00)

Total 0.17 2.35 2.52

 M/S Pankaj Shah
Calculation of interest on Bank Loan : Under Personal Loan

Loan Amount Interest Towards Total Balance

Principal Instalment Due
1st 1st Quar.
Year

Total - - -

2nd 1st Quar. - -

Year - - - - -

Total - - -

3rd 1st Quar. - - - - -

Year - - - - -

Total - - -

4th 1st Quar. - - - - -

Year - - - - -

Total - - -

5th 1st Quar. - - - - -

Year - - - - -

Total - - -
 M/S Pankaj Shah

IV. PROJECTED PROFITABILITY STATEMENT : (Rs. in Lacs)

Particulars 31-03-09 31-03-10 31-03-11 31-03-12 31-03-13

I. Income :
Job Work From Embroidery Wor 16.04 38.49 38.49 38.49 38.49

16.04 38.49 38.49 38.49 38.49

Less:
Thread Expenses 3.70 8.88 8.88 8.88 8.88
Power Cost 1.39 3.51 3.51 3.68 3.87
Wages & Salaries 3.80 9.58 9.58 9.58 9.58
Consumable Stores & spares 0.32 0.77 0.77 0.77 0.77
Other Manufacturing Cost 0.80 1.92 1.92 1.92 1.92
Repairs & Maintenance 0.22 0.65 1.08 1.13 1.19

Sub Total 10.23 25.31 25.74 25.97 26.21

Gross Profit (A) - (B) 5.81 13.19 12.76 12.53 12.29

II. Expenses :
Depreciation Exp. 1.61 2.98 2.54 2.16 1.83
Administrative Expenses 0.42 1.50 1.50 1.50 1.50
Interest on Loan under TUF Sc 1.01 2.11 1.63 1.14 0.66
Interest on Loan under regulars - - - - -
Interest on unsecured Loan - - - -

3.04 6.60 5.66 4.80 3.99

Profit before Taxation 2.77 6.59 7.09 7.73 8.30

Previous year Loss - - - - -
Total Profit 2.77 6.59 7.09 7.73 8.30

Income Tax 0.13 1.53 1.68 1.87 2.04

Profit after tax 2.64 5.06 5.42 5.86 6.26

 M/S Pankaj Shah

Production during the year: (Rs. in Lacs)

The Production capacity for embroidery work on saree depends on no.of stiches applied to the sarees.

No.of Machine 4
No.of Heads (7*2) + (11*2) 36
No.of Colours 6

Working Speed (R.P.M.) 700

Stiches per Minute 300*700 25,200
Stiches per Month 210000x 25 x 960 604,800,000
Total Minutes per day 1,440
Less: Setting Time 480
960

Stitches per saree of 4.8 meter length 200,000

Sarees Production per Month 3,024
Embroidered Fabric production\ 30days meters (25200*4.8) 14,515

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Production at 100% capacity 14,515 14,515 14,515 14,515 14,515
Capcity utilisation 85% 85% 85% 85% 85%
Production per Month 12,338 12,338 12,338 12,338 12,338
Production per Annum 148,055 148,055 148,055 148,055 148,055
Job Charges Per Mtrs 26.00 26.00 26.00 26.00 26.00
Total Job charges p.a. 38.49 38.49 38.49 38.49 38.49
 M/S Pankaj Shah
Embroidery Thread Expenses:
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Production at 100% capacity 14,515 14,515 14,515 14,515 14,515
Capcity utilisation 85% 85% 85% 85% 85%
Production per Month 12,338 12,338 12,338 12,338 12,338
Production per Annum 148,055 148,055 148,055 148,055 148,055
Thread Expenses Per mitre 6.00 6.00 6.00 6.00 6.00
Total Thread Expenses 8.88 8.88 8.88 8.88 8.88
 M/S Pankaj Shah
Power Expenses : (Rs. in Lacs)

Power Calculation M/cs H.P Total H.P

Embroidery Machine 4 2.50 10.00

General Lighting 1.00

11.00

Power Calculation 6.00*22.5*300*4.5 = 3.34

Power Cost 3.34 3.51 3.51 3.68 3.87

 M/S Pankaj Shah
Labour Charges :-
Man Shift Rate month Total Salary

Operator 4 2 4,000.00 12 384,000

Helper 4 2 3,000.00 12 288,000
Operator 2 2 5,000.00 12 240,000

912,000
Wages & Salaries 9.12 9.58 9.58 9.58 9.58

Total Wages & Salaries 9.12 9.58 9.58 9.58 9.58

Total wages & Salaries 9.12 9.58 9.58 9.58 9.58

 M/S Pankaj Shah

Consumable Stores & spares

2% of Labour Income 0.32 0.77 0.77 0.77 0.77

Other Manufacturing Cost :

5.00% of Consumption 0.80 1.92 1.92 1.92 1.92

Repairs & Maintenance exp.:

Capital Cost of Project @ 1% 3% 5% 5% 5%

and 5% increase thereof 0.22 0.65 1.08 1.13 1.19

Administrative Expenses :

Expenses Per Annum 1.00 1.50 1.50 1.50 1.50

Calculation of Income Tax

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year

Net profit before tax 2.77 6.59 7.09 7.73 8.30

Basic Exemption Limit 1.50 1.50 1.50 1.50 1.50
Net Profit 1.27 5.09 5.59 6.23 6.80
Tax @ 30% 0.13 1.53 1.68 1.87 2.04
 M/S Pankaj Shah

31-03-14

22.46

22.46

5.18
2.26
5.59
0.45
1.12
0.73

15.32

7.13

1.56
0.88
0.17
-
-

2.61

4.53
-
4.53

0.61

3.92
 M/S Pankaj Shah

6th year
14,515
85%
12,338
148,055
26.00
38.49
 M/S Pankaj Shah

6th year
14,515
85%
12,338
148,055
6.00
8.88
M/S Pankaj Shah

3.87
 M/S Pankaj Shah

alary

9.58

9.58

9.58
 M/S Pankaj Shah

0.45

1.12

5%
1.24

1.50

6th Year

4.53
1.50
3.03
0.61
 M/S Pankaj Shah

CASH FLOW STATEMENT :

Pre-Period 31-03-09 31-03-10 31-03-11 31-03-12 31-03-13

Sources of funds :

Net profit as per profita-

bility statement(Before tax) 2.77 6.59 7.09 7.73 8.30
Introduced by proprietor 5.38 - - - - -
Term Loan 16.12 - - - - -
Unsecured Loan - - - - - -
Inc. in Bank Borrowing - - - - - -
Depreciation - 1.61 2.98 2.54 2.16 1.83

21.50 4.38 9.57 9.63 9.89 10.13

Application of Funds :
Land - - - - - -
Construction - - - - - -
Plant & Machinery 21.50 - - - - -
Plant & Mac(Indege.) - - - - - -
Computer - - - - - -
Vehicle - - - - - -
other Assets - - - - - -
Investment
Repayment of Term loan-Tuf - 0.81 3.24 3.24 3.24 3.24
Increase In Labour Receivable 1.34 2.94 2.14 1.28 1.92
Increase In Closing Stock 1.00 1.00 0.50 0.50 0.50
withdrawal - 1.20 1.20 1.20 1.50
Income Tax Paid 0.13 1.53 1.68 1.87 2.04
21.50 3.27 9.91 8.76 8.09 9.20

Opening Balance - - 1.11 0.78 1.65 3.44

Net Surplus - 1.11 (0.33) 0.87 1.79 0.93

Closing Balance - 1.11 0.78 1.65 3.44 4.37

 M/S Pankaj Shah

31-03-14

4.53
-
-
-
-
1.56

6.08

-
-
-
-
-
-
-

2.35
1.60
0.50
1.50
0.61
6.56

4.37
(0.47)

3.89
 M/S Pankaj Shah

Share Capital & Reserves & Surplus : (Rs. in Lacs)

Particular 31-03-09 31-03-10 31-03-11 31-03-12 31-03-13 31-03-14

Opening Balance - 8.02 11.89 16.10 20.76 25.52

Capital Introduce 5.38 - - - - -
Revaluation Reserve - - - - - -
5.38 8.02 11.89 16.10 20.76 25.52
Profit & Loss Account 2.64 5.06 5.42 5.86 6.26 3.92

Total 8.02 13.09 17.30 21.96 27.02 29.44

Less Withdrawal - 1.20 1.20 1.20 1.50 1.50

Closing Balance 8.02 11.89 16.10 20.76 25.52 27.94

 M/S Pankaj Shah

PROJECTED BALANCE SHEET

Particulars 31-03-09 31-03-10 31-03-11 31-03-12 31-03-13 31-03-14

Liability :

Capital Block 8.02 11.89 16.10 20.76 25.52 27.94

Term Loan from Bank -TUF 15.31 12.07 8.83 5.59 2.35 -
Term Loan from Bank -TUF Regular
Unsecured Loan - - - - - -
Sundry Creditors - - - - - -
23.33 23.96 24.93 26.35 27.87 27.94

Assets :
Land -
Construction - - - - - -
Plant & Machinery 19.89 16.90 14.37 12.21 10.38 8.82
Plant & Mac(Indegeneous) - - - - - -
Computer - - - - - -
AC & CVT - - - - - -
Other Assets - - - - - -
Cash & Bank 1.11 0.78 1.65 3.44 4.37 3.89
Labour Receivable 1.34 4.28 6.42 7.70 9.62 11.23
Closing Stock 1.00 2.00 2.50 3.00 3.50 4.00
23.33 23.96 24.93 26.35 27.87 27.94
- - - - -
 M/S Pankaj Shah
Calculation of various Ratios

31-03-09 31-03-10 31-03-11 31-03-12 31-03-13 31-03-14

Debt Service Coverage Ratio :

(A) Cash flow :

Net Profit after tax 2.64 5.06 5.42 5.86 6.26 3.92
Depreciation 1.61 2.98 2.54 2.16 1.83 1.56
Interest on loan-TUF 1.01 2.11 1.63 1.14 0.66 0.17
Interest on loan-Personal - - - - -
Interest on Unsecured Loan - - - - -

Total A 5.26 10.16 9.58 9.16 8.75 5.65

(B) Debt Servicing :

Repayment of Loan 0.81 3.24 3.24 3.24 3.24 2.35

Interest on loan-TUF 1.01 2.11 1.63 1.14 0.66 0.17
Repayment of - -
Interest on loan - - - - -
Int.on Unsecured Loan - - - - -

Total B 1.82 5.35 4.87 4.38 3.90 2.52

D.S.C.R.( A \ B) 2.90 1.90 1.97 2.09 2.25 2.24

Interest Coverage Ratio 5.22 4.81 5.88 8.02 13.33 32.63
Average for 5 years 2.22
 M/S Pankaj Shah
Calculation of various Ratios

31-03-09 31-03-10 31-03-11 31-03-12 31-03-13 31-03-14

Debt-Equity Ratio :

(A) Debt :

Term Loan from Bank -TUF 15.31 12.07 8.83 5.59 2.35 -
Term Loan from Bank -Personal - - - - -
Total (A) 15.31 12.07 8.83 5.59 2.35 -

(B) Equity :

Capital Block 8.02 11.89 16.10 20.76 25.52 27.94

Unsecured Loan - - - -
Total (B) 8.02 11.89 16.10 20.76 25.52 27.94

(C) Debt \ Equity = A\B 1.91 1.02 0.55 0.27 0.09 -

Average Debt\Equity Ratio 0.64

for 7 years

Current Ratio

31-03-09 31-03-10 31-03-11 31-03-12 31-03-13 31-03-14

Current Ratio:

Current Assets :
Cash on Hand 1.11 0.78 1.65 3.44 4.37 3.89
Labour Receivable 1.34 4.28 6.42 7.70 9.62 11.23
Closing Stock 1.00 2.00 2.50 3.00 3.50 4.00
3.45 7.05 10.56 14.14 17.49 19.12

Current Liability:
Sundry Creditors - - - - -
Term Loan Payment due 3.24 3.24 3.24 3.24 2.35
within 1 year
3.24 3.24 3.24 3.24 2.35 -

Current Ratio 1.06 2.18 3.26 4.36 7.44

Working Capital 0.21 3.81 7.32 10.90 15.14
 M/S Pankaj Shah
BREAK EVEN ANALYSIS
31-03-09 31-03-10 31-03-11 31-03-12 31-03-13 31-03-14
Fixed Cost :
Depreciation 1.61 2.98 2.54 2.16 1.83 1.56
Interest on loan-TUF 1.01 2.11 1.63 1.14 0.66 0.17
Interest on loan-Regular - - - - - -
Fixed expenses 0.21 0.75 0.75 0.75 0.75 0.44
Int.on Unsecured Loan - - - - - -

Total (I) 2.83 5.85 4.91 4.05 3.24 2.17

Profit Volume Ratio :

Particulars 31-03-09 31-03-10 31-03-11 31-03-12 31-03-13 31-03-14

Gross Profit 5.81 13.19 12.76 12.53 12.29 7.13

Less : Variable Cost
Administrative Exp. 0.21 0.75 0.75 0.75 0.75 0.44
Contribution (A) 5.60 12.44 12.01 11.78 11.54 6.70

Labour Income 16.04 38.49 38.49 38.49 38.49 22.46

P.V.Ratio (A) / (B) 34.91 32.31 31.19 30.60 29.97 29.82

Break Even Labour Income (C) 8.10 18.10 15.75 13.23 10.80 7.27

Margin of Safety (B) - (C) 7.94 20.40 22.74 25.27 27.69 15.18

Average Margin of Safety 19.87

 M/S Pankaj Shah

AVAILABILITY OF TERM LOAN FROM BANK AS PER NORMS :

(Rs.in Lacs)
Fixed Assets Margin % Value Margin Loan

Plant & Machinery( Under TUF Scheme) 25% 21.50 5.38 16.12
Plant & Machinery( Under Regular Hypo) 25% - - -

TOTAL 21.50 5.38 16.12

Assistance Required from Banks : 16.12