M/s.

LAVISH CERAMICS
Survey No. 763, Near 8-A, National Highway,
Lakhdhirpur Road, Morbi - 363642.

THE PROJECT COST

1 Cost Of Project
The estimates of the project cost will be under :
Sr. Details Existing Propose
1 Factory Land :
Factory Land at Survey No.763, Near 8-A National Highway,
Lakhdhirpur Road, Morbi - 2 (Gujarat) :
Cost of Factory Land 106000
Total cost Rs. .. .. > 106000 0
2 Factory Building :
Factory Buildings at above place, As per Plan and Estimates
enclosed herewith :
- Main Factory Building 8024000
- Compound wall & Other Civil Works 911000
Total cost Rs. .. .. > 0 8935000
3 Plant and Machineries :
Plant and Machineries, As per list enclosed
- Imported Plant & Machinery (New) 20740000
- Imported Plant & Machinery (Second Hand) 6913000
- Indigenous Plant & Machinery 7292000
Total cost Rs. .. .. > 34945000 0 34945000
4 Other Installation & Equipments :
Other Installation & Equipments,
As per list enclosed 1439000
Total cost Rs. .. .. > 0 1439000
4 Electrification & Installation:
Electrification & Installation, As per list enclosed
- Electrification & Electric Installation 450000
Total cost Rs. .. .. > 0 450000

5 Other Non Current Assets:

 GEB Deposit etc. 0 550000

Total Capital Cost of Project .. > 106000 46319000

6 Margin for working capital 0 4803900

Total Rs………… 106000 51122900

Say Rs…………

M/s. LAVISH CERAMICS PROJECT REPORT

2 Means Of Finance
The project cost will be met by as under :

Sr. Details Existing Propose

1 Partners Capital 106000 14894000

2 Term loan From Bank / FI :

Eligible loan amount against cost of Project:

- Against total cost of Factory Buildings of

Rs. 8935000/- @ 50% 4467500

- Against total cost of Imported Plant & Machinery (New) of

Rs. 20740000/- @ 75% 15555000

- Against total cost of Imported Plant & Machinery (SH) of

Rs. 6913000/- @ 50% 3456500

- Against total cost of Indigenous Plant & Machinery of

Rs. 7292000/- @ 75% 5469000

- Against total cost of Other Installation & Equipments of

Rs. 1439000/- @ 75% 1079000

- Against total cost of Electric Installation of Rs.

450000/- @ 75% 338000

Total eligible loan amount against cost of Project: 30365000

Applied for term loan of Rs. 30000000 0 30000000

3 Un-secured Loans / Deposits 0 6229000

4 Short Term Deposit / Internal Cash Accruals 0 0

Total Rs…………. 106000 51123000

a) Promoters Contribution

b) Promoters Contribution
(Considering Unsecured Loan and Short Term Deposit
Internal Cash Accruals as a Quasi-equity)
( In Rs. )
Total

106000

8935000

34945000

1439000

450000
 550000

46425000
4803900

51228900
51229000

PROJECT REPORT

( In Rs. )
Total

15000000

30000000
 6229000

51229000

29.28%

41.44%
 M/s. LAVISH CERAMICS
Survey No. 763, Near 8-A, National Highway,
Lakhdhirpur Road, Morbi - 363642.

4 Projection Of Performance, Profitability And Repayments

Estimates for performance, profitabilities for the projection period will be as under:

Sr. PARTICULARS YEAR

No. I II III IV V
(A) Production During the year
% utilization of installed 50% 55% 60% 65% 70%
Capacity (Qty In MTs.) 9750 10725 11700 12675 13650
(B) Sales:
1 Sales Including all Misc. Receipts. 642.08 780.69 860.19 933.15 1005.43
2 Less: Excise 25.41 30.89 34.04 36.92 39.78
3 Net Sales 616.67 749.80 826.15 896.23 965.65
4 Other Income ( give details) if any 0.00 0.00 0.00 0.00 0.00
Total of "B" 616.67 749.80 826.15 896.23 965.65
(C) Cost of Production :
1 Raw-Materials Consumed 248.87 273.76 298.64 323.53 348.42
2 Power & Fuel 218.70 240.46 262.21 283.97 305.72
3 Direct Labour and wages 25.20 27.26 29.33 31.39 33.46
4 Consumable Stores, Spares 34.13 37.54 40.95 44.36 47.78
5 Repairs and Maintenance 4.88 5.36 5.85 6.34 6.83
6 Other Manufacturing Expenses. 5.85 6.44 7.02 7.61 8.19
7 Depreciation/ Development Rebate 64.19 55.00 47.16 40.44 34.70
Total Cost of Production (C) 601.82 645.82 691.16 737.64 785.10
8 Add: Opening Stock of work in 0.00 78.02 92.38 99.86 106.72
Process and Finished Goods
9 Less: Closing Stock of Work in 78.02 92.38 99.86 106.72 113.63
Process and Finished Goods
(D) Cost of Sales 523.80 631.46 683.68 730.78 778.19
(E) Gross Profit (B-D) 92.87 118.34 142.47 165.45 187.46
(F) Interest Expenses :
1 Interest on Term Loan 36.00 31.50 24.30 17.10 9.90
 2 Interest on Working Capital 12.00 12.00 12.00 12.00 12.00
3 Other Loan if any 0.00 0.00 0.00 0.00 0.00
(G) Selling, General & Adm. Exp. 10.80 10.96 11.50 12.08 12.69
Preliminary Exp. W/Off 0.00 0.00 0.00 0.00 0.00
(H) Profit Before Tax.[ E- (F+G)] 34.07 63.88 94.67 124.27 152.87

Cont. in next page .. ..

M/s. LAVISH CERAMICS PROJECT REPORT

Sr. PARTICULARS YEAR

No. I II III IV V

(I) Provision for Taxes. 1.37 2.99 4.94 6.48 7.70

(J) Net Profit After Tax (H - I ) 32.70 60.89 89.73 117.79 145.17

(K) Depreciation added back 64.19 55.00 47.16 40.44 34.70

(L) Net Cash Accruals (J + K) 96.89 115.89 136.89 158.23 179.87

(M) Repayment Obligations :

1 Towards Term Loan TL 15.00 60.00 60.00 60.00 60.00
2 Towards other Loan if any 0.00 0.00 0.00 0.00 0.00
Total Repayment Obligation 15.00 60.00 60.00 60.00 60.00

(N) Debt service Ratio

(L+F1+F3)/(M+F1+F3) 2.61 1.61 1.91 2.27 2.71
M/s. LAVISH CERAMICS PROJECT REPORT

5 Cash-flow Statement

Estimated Cash Flow for the projection period will be as under:

Sr. PARTICULARS Const. YEAR

No. Period I II III IV V
(A) SOURCE OF FUNDS:
1 Cash Accruals (viz.Profit 82.07 107.38 130.97 153.37 174.77
before Tax) (Item H to
which shall be added int.
( Item F)
2 Increase in Capital 150.00
3 Depreciation 64.19 55.00 47.16 40.44 34.70
4 Increase in MTL TL 300.00
5 Incre.in Deferred payment
6 Incre. in Unsecured Loan 62.29
 7 Incre.in Borrowing for WC WCTL 100.00
8 Sales of Fixed Assets
9 Other (Specify) Creditors. 6.94 -0.35 0.59 0.59 0.59
TOTAL SOURCES (A) 512.29 253.20 162.03 178.72 194.40 210.06
(B) DISPOSITION OF FUNDS:
1 Preli. & Pre-operative exp. 0.00
2 Incre.in Capital Expense. 458.75
3 Increase in Current Assets:
a Inventories 128.23 19.39 12.49 11.88 11.94
b Other Current Assets 96.10 6.13 3.66 3.39 3.36
4 Decrease in MTL 15.00 60.00 60.00 60.00 60.00
5 Decre.in Deferred payment
6 Decre. in Unsecured Loan
7 Increase in Investment/ Other Non-CA 5.50 0.00 3.50 3.50 3.50 3.50
8 Interest 48.00 43.50 36.30 29.10 21.90
9 Taxation 1.37 2.99 4.94 6.48 7.70
10 Other Expenses (Specify)
(Dividend with tax) 6.00 40.00 63.00 84.00 105.00
TOTAL DISPOSITION (B) 464.25 294.70 175.51 183.89 198.35 213.40
(C) Opening Balance 48.04 6.54 -6.94 -12.11 -16.06
(D) Net Surplus (A - B) 48.04 -41.50 -13.48 -5.17 -3.95 -3.34
(E) Closing Balance (C + D) 48.04 6.54 -6.94 -12.11 -16.06 -19.40

M/s. LAVISH CERAMICS PROJECT REPORT

6 Projected Balance sheet

Estimated Projected Balance Sheet for the projection period will be as under:

Sr. PARTICULARS YEAR

No. I II III IV V
(A) LIABILITIES
 1 Partners Capital 150.00 150.00 150.00 150.00 150.00
2 Reserve & Surplus ( P & L A/c) 26.70 47.59 74.32 108.11 148.28
3 Term Loan :
From Bank TL 285.00 225.00 165.00 105.00 45.00
Un- Secured 62.29 62.29 62.29 62.29 62.29
4 Bank Borrowing for W/C. 100.00 100.00 100.00 100.00 100.00
5 Other Liabilities. ( Creditors) 6.94 6.59 7.18 7.77 8.36
TOTAL LIABILITIES (A) 630.93 591.47 558.79 533.17 513.93

(B) ASSETS
1 Fixed Assets ( Gross Block) 458.75 458.75 458.75 458.75 458.75
2 Less : Depreciation 64.19 119.19 166.35 206.79 241.49
3 Net Block 394.56 339.56 292.40 251.96 217.26
4 Preliminary Expenses 0.00 0.00 0.00 0.00 0.00
5 Investments & Other Non Current Assets 5.50 9.00 12.50 16.00 19.50
6 Current assets 224.33 249.85 266.00 281.27 296.57
7 Cash & Bank Balances 6.54 -6.94 -12.11 -16.06 -19.40
TOTAL ASSETS (B) 630.93 591.47 558.79 533.17 513.93

M/s. LAVISH CERAMICS PROJECT REPORT

7 Assessment of Working Capital

Estimates for requirement of working capital for the projection period will be as under:

Sr. PARTICULARS YEAR

No. I II III IV V
(I) CURRENT ASSETS:
1 Raw Materials including Stores
1.1 Imported ( Month's Consumption)
1.2 Indigenous 41.48 45.63 49.77 53.92 58.07
(Month's Consumption) 2.00 2.00 2.00 2.00 2.00
2 Store / Spares / Packing Mate./ Fuel 8.73 9.61 10.48 11.35 12.23
(Month's Consumption) 0.50 0.50 0.50 0.50 0.50
3 Stock - In - Process 12.54 13.45 14.40 15.37 16.36
(Month's Cost of Prod.) 0.25 0.25 0.25 0.25 0.25
4 Finished Goods. 65.48 78.93 85.46 91.35 97.27
(Month's Cost of Sales) 1.50 1.50 1.50 1.50 1.50
5 Receivable other then export
deferred receivable 26.75 32.53 35.84 38.88 41.89
(Month's domestic sales excluding 0.50 0.50 0.50 0.50 0.50
deferred payment sales)
6 Export Receivable
7 Advances to suppliers of RM & Others CA 69.35 69.70 70.05 70.40 70.75
8 Other Current Assets including
Cash and Bank Balances. 5.92 7.33 8.82 10.22 11.76
TOTAL CURRENT ASSETS: ( I ) 230.25 257.18 274.82 291.49 308.33
(II) CURRENT LIABILITIES
1 Creditors for purchase of Raw- 6.94 6.59 7.18 7.77 8.36
materials and stores
(Month's purchase) 0.25 0.25 0.25 0.25 0.25
2 Advance from Customers
3 Accrued Expenses.
4 Statutory Liabilities
5 Other Current Liabilities
TOTAL CURRENT LIABILITIES 6.94 6.59 7.18 7.77 8.36
(III) Working Capital Gap ( I - II ) 223.31 250.59 267.64 283.72 299.97
(IV) Margin for Working Capital 123.31 150.59 167.64 183.72 199.97
(V) Permissible Bank Borrowings 100.00 100.00 100.00 100.00 100.00
(Rs.in Lacs)

VI VII

75% 80%
14625 15600

1077.65 1149.87
42.64 45.50
1035.01 1104.37
0.00 0.00
1035.01 1104.37

373.30 398.19
327.48 349.23
35.52 37.58
51.19 54.60
7.31 7.80
8.78 9.36
29.79 25.59
833.37 882.35
113.63 120.65

120.65 127.78

826.35 875.22
208.66 229.15

2.70 0.00
 12.00 0.00
0.00 0.00
13.32 13.99
0.00 0.00
180.64 215.16

Cont. in next page .. ..

PROJECT REPORT

(Rs.in Lacs)

VI VII

8.63 11.84

172.01 203.32

29.79 25.59

201.80 228.91

45.00 0.00
0.00 0.00
45.00 0.00

4.29 NA
PROJECT REPORT

(Rs.in Lacs)

VI VII

195.34 215.16

29.79 25.59
 0.59 0.59
225.72 241.34

12.04 12.16
3.36 3.36
45.00 0.00

3.50 3.50
14.70 0.00
8.63 11.84

141.00 209.00
228.23 239.86
-19.40 -21.91
-2.51 1.48
-21.91 -20.43

PROJECT REPORT

(Rs.in Lacs)

VI VII
 150.00 150.00
179.29 173.61

0.00 0.00
62.29 62.29
100.00 100.00
8.95 9.54
500.53 495.44

458.75 458.75
271.28 296.87
187.47 161.88
0.00 0.00
23.00 26.50
311.97 327.49
-21.91 -20.43
500.53 495.44

PROJECT REPORT
(Rs.in Lacs)

VI VII

62.22 66.37
2.00 2.00
13.10 13.98
0.50 0.50
17.36 18.38
0.25 0.25
103.29 109.40
1.50 1.50

44.90 47.91
0.50 0.50

71.10 71.45

13.68 15.23
325.65 342.72

8.95 9.54

0.25 0.25

8.95 9.54
316.70 333.18
216.70 233.18
100.00 100.00