PROJECT REPORT

On

SHABAAN
For

HOISERY MANUFACTURING

PROJECT COST OF Rs 5.00 LACS

INCLUDING TERM LOAN AND CC LIMIT

Submitted By:

SHABAAN

VILLAGE KAILASHPUR, NEAR

KACHCHI MASJID
GAPPAN ROAD, SAHARANPUR
 THE PROJECT AT A GLANCE

1 NAME OF THE UNIT SHABAAN

2 ADDRESS (WORKS ) VILLAGE KAILASHPUR, NEAR KACHCHI MASJID
GAPPAN ROAD, SAHARANPUR
3 ADDRESS (REGISTERED OFFICE) SAME AS ABOVE

4 DATE OF CONSTITUTION/COMMENCEMENT YEAR 2025

5 CONSTITUTION PROPRIETORSHIP FIRM

6 PRODUCT(S) MANUFACTURED HOSIERY

7 FINANCE BY NEW FINANCE PROPOSAL

8 NAME OF PROPRIETOR PROPRIETOR: SHABAAN

9 EXPERIENCE SATISFACTORY EXPERIENCE

10 QUALIFICATION 8TH STANDARD
11 NATIONALITY INDIAN
12 FIRST YEAR CAPACITY 60%
ANNUAL SALES OF RUPEES –
13 PRODUCTION CAPACITY AT 100 % Rs 15.00 LACS
14 POWER & FUEL ELECTRICITY CONNECTION
15 ESTIMATED WORKING PERIOD 360 DAYS AND 8 HRS PER DAY
16 FULL TIME EMPLOYMENT 6 PERSONS
17 SECURITY FOR LOAN (PRIMARY) STOCK, BOOK DEBTS
ALL ASSETS PURCHASED OUT OF BANK FINANCE
COLLATERAL NIL
18 COST AND MEANS OF FINANCE PROJECT COST 5.00 LACS
FIXED COST 3.00 LACS
WORKING CAPITAL 2.00 LACS
MARGIN 0.50 LACS
SUBSIDY 0.63 LACS
TERM LOAN 2.70 LACS
CC LIMIT 1.80 LACS
ESTIMATED TOTAL COST OF PROJECT & MEANS OF FINANCE
THE CONSOLIDATED TOTAL COST OF PROJECT HAS BEEN WORKED OUT IN DETAIL AND THE
BREAK-UP IS AS HEREUNDER :-
(A) COST OF PROJECT
(Rs. IN LAC)
CAPITAL EXPENDITURE :- TO BE TOTAL
LAND OWNED

EQUIPMENTS 3.00 3.00

TOTAL Rs. 3.00 3.00

(B) MEANS OF FINANCE

(Rs. IN LAC)
[Link]. PARTICULARS TO BE TOTAL
INFUSED
1. OWN FUNDS 0.30 0.30
2. TERM LOAN FROM BANK 2.70 2.70
TOTAL Rs. 3.00 3.00
COST AND PROFITABILITY STATEMENT

YEARS 1 2 3 4 5

RECEIPTS/SALES 15.00 16.50 18.15 19.97 21.96

EXPENSES
PURCHASE 7.80 6.44 7.26 8.19 9.22
POWER & FUEL 0.24 0.25 0.26 0.28 0.29

8.04 6.69 7.52 8.46 9.52

Add:Op Stock - 2.50 2.63 2.76 2.89
Less: Cl stock 2.50 2.63 2.76 2.89 3.04
TOTAL COST 5.54 6.56 7.39 8.33 9.37
GROSS PROFIT 9.46 9.94 10.76 11.64 12.59

REPAIR & MAINTANENCE 0.05 0.05 0.06 0.06 0.06

DEPRECIATION 0.45 0.38 0.33 0.28 0.23
TELEPHONE EXP. & INTERNET 0.06 0.06 0.07 0.07 0.07
TRAVELLING EXP. 0.08 0.08 0.09 0.09 0.10
ADMIN & SELLING EXPENSES 0.25 0.26 0.28 0.29 0.30
SALARY 4.00 4.20 4.41 4.63 4.86
INSURANCE 0.03 0.03 0.03 0.03 0.03
INTEREST ON TERM LOAN 0.26 0.20 0.14 0.09 0.03
INTEREST ON W/C LOAN 0.18 0.18 0.18 0.18 0.18
TOTAL 5.35 5.45 5.57 5.71 5.87

NET PROFIT BEFORE TAX 4.11 4.48 5.18 5.92 6.72

TAXES - - - - -
PROFIT AFTER TAX 4.11 4.48 5.18 5.92 6.72
PROJECTED BALANCE SHEET

(Rs. In LAC)
LIABILITIES 1 2 3 4 5

CAPITAL A/C - 1.61 2.09 2.77 3.95

CAPITAL INTRODUCED 0.50 - -

ADD: NET PROFIT DURING YEAR 4.11 4.48 5.18 5.92 6.72

4.61 6.09 7.27 8.70 10.66

LESS: WITHDRAWLS 3.00 4.00 4.50 4.75 5.50

CLOSING BALANCE 1.61 2.09 2.77 3.95 5.16

SUBSIDY 0.63 0.63 0.63 0.63 0.63

SECURED LOANS
TERM LOAN 2.16 1.62 1.08 0.54 -

CURRENT LIABILITES

C/C(HYPO.) FROM BANK 1.80 1.80 1.80 1.80 1.80

OTHER CURRENT LIABILITIES 0.03 0.03 0.03 0.03 0.04

SUNDRY CREDITORS 0.39 0.41 0.43 0.45 0.47

TOTAL 6.61 6.58 6.74 7.40 8.10

ASSETS 1 2 3 4 5

FIXED ASSETS 3.00 2.55 2.17 1.84 1.57

LESS: DEPRECIATION 0.45 0.38 0.33 0.28 0.23
2.55 2.17 1.84 1.57 1.33
NON CURRENT ASSETS 0.63 0.63 0.63 0.63 0.63
CURRENT ASSETS
STOCK 2.50 2.63 2.76 2.89 3.04
DEBTORS 0.75 0.83 0.91 1.00 1.10

CASH AND BANK BALANCES 0.19 0.33 0.61 1.31 2.01

TOTAL 6.61 6.58 6.74 7.40 8.10

PROJECTED CASH FLOW STATEMENT OVER A PERIOD OF SEVEN YEARS
(Rs. In LAC)
YEARS 1 2 3 4 5
SOURCES OF FUNDS:-
[Link] TAX 4.11 4.48 5.18 5.92 6.72
INCREASE IN CAPITAL 1.13 - - - -
DEPRECIATION 0.45 0.38 0.33 0.28 0.23
INCREASE IN TERM LOAN 2.70 -
INCREASE IN WC LOAN 1.80 - - - -
INC/DEC IN SUNDRY CREDITORS 0.42 0.02 0.02 0.02 0.02

TOTAL SOURCES OF FUNDS 10.60 4.89 5.53 6.22 6.97

DISPOSITION OF FUNDS:-
INCREASE IN CAPITAL EXPENDITURE 3.00 - - - -
INCREASE IN STOCK 2.50 0.13 0.13 0.14 0.14
INCREASE IN DEBTORS 0.75 0.08 0.08 0.09 0.10
INCREASE IN NON CURRENT ASSETS 0.63 - - - -
TAXATION - - - - -
TERM LOAN REPAYMENT 0.54 0.54 0.54 0.54 0.54
DRAWINGS 3.00 4.00 4.50 4.75 5.50
TOTAL DISPOSITION OF FUNDS:- 10.42 4.74 5.25 5.52 6.28
OPENING BALANCE - 0.19 0.33 0.61 1.31
NET SURPLUS 0.19 0.15 0.28 0.71 0.69
CLOSING BALANCE 0.19 0.33 0.61 1.31 2.01
SCHEDULE OF DEPRECIATION ( BY WDV METHOD)

(Rs. In LAC)
PARTICULARS 1 2 3 4 5

PLANT & MACHINERY OPNG. BAL. 0.00 2.55 2.17 1.84 1.57
ADDITIONS/REPAIRS 3.00 0.00 0.00 0.00 0.00
3.00 LAC LESS: DEP. 0.45 0.38 0.33 0.28 0.23
@15% WDV 2.55 2.17 1.84 1.57 1.33

CALCULATION OF DSCR

PARTICULARS 1 2 3 4 5

Net Profit 4.11 4.48 5.18 5.92 6.72

Add: Depreciation 0.45 0.38 0.33 0.28 0.23

Cash Accruals 4.56 4.87 5.51 6.20 6.95

Interest on Term Loan 0.26 0.20 0.14 0.09 0.03
Total (A) 4.81 5.07 5.65 6.29 6.98

Installment of Term Loan 0.54 0.54 0.54 0.54 0.54

Interest on Term Loan 0.26 0.20 0.14 0.09 0.03

Total (B) 0.80 0.74 0.68 0.63 0.57

D.S.C.R. = A / B 6.05 6.86 8.29 10.06 12.28

Average D.S.C.R. 7.26

SCHEDULE OF INTEREST ON LOAN
(RS. IN LAC)
YEARS 1 2 3 4 5
TERM LOAN :-
OPENG. BALANCE 2.70 LAC 2.70 2.16 1.62 1.08 0.54
LESS: REPAYMENT 0.54 0.54 0.54 0.54 0.54
CLOSING BALANCE 2.16 1.62 1.08 0.54 -

TOTAL O/S BAL 2.16 1.62 1.08 0.54 -

W.C. LOAN:-
OPENG. BALANCE 1.80 LAC 1.80 1.80 1.80 1.80 1.80
LESS: REPAYMENT - - - - -
CLOSING BALANCE 1.80 1.80 1.80 1.80 1.80

TOTAL REPAYMENT 0.54 0.54 0.54 0.54 0.54

INTT. ON LOAN:-
[Link] T/L @ 0.26 0.20 0.14 0.09 0.03

[Link] WCL. @ 0.18 0.18 0.18 0.18 0.18

TOTAL INTEREST 0.44 0.38 0.33 0.27 0.21

 RATIO ANALYSIS

YEAR 1 2 3 4 5

CURRENT ASSETS 3.44 3.78 4.27 5.21 -

CURRENT LIAB 2.22 2.24 2.26 2.29 2.31

CURRENT RATIO 1.55 1.69 1.89 2.28 2.66

LEVERAGE RATIO 2.73 1.85 1.21 0.72 0.45

TOL 4.38 3.86 3.34 2.83 2.31

TOL/TNW 2.73 1.85 1.21 0.72 0.45

DER 1.35 0.78 0.39 0.14 -

TNW/Capital 1.61 2.09 2.77 3.95 5.16

DEBT EQUITY RATIO 1.35 0.78 0.39 0.14 0.00

Net profits 4.11 4.48 5.18 5.92 6.72

TOLTNW 2.73 1.85 1.21 0.72 0.45

SALE 25% 3.75 4.13 4.54 4.99 5.49

SALE 5% 0.75 0.83 0.91 1.00 1.10

ACTUAL MARGIN 1.22 1.54 2.01 2.92 3.83

MPBF 2.53 2.58 2.53 2.07 1.66