AND Techno-Economic Cum Pre-Investment Feasibility Report: Manfacturing of Wooden Boxes/Shooks

Industrial and Engineering Consultancy ® (Govt.
Approved),
Room no. 312, Lone building K.P Road Anantnag
AND
TECHNO-ECONOMIC CUM PRE-INVESTMENT
FEASIBILITY REPORT
ON
MANFACTURING OF WOODEN BOXES/SHOOKS
LOCATED AT
LALIPORA MALAPORA BUMTHAN KMR.
IN FAVOUR OF
MR GH. AHMAD LONE
S/O LATE AB. KHALIQ LONE
R/O MALAPORA ANG.
PROJECT CO-ORDINATOR
PREPARED BY:
SIGMA CONSULTANCY SERVICES®
(GOVT. APPROVED INDUSTRIAL AND ENGINEERING CONSULTANCY)
ORDER NO:1015-DI&C-KMR
ISSUED UNDER NO: DI&C/P&S/405/1604
1
Industrial and Engineering Consultancy ® (Govt. Approved),
INDEX
SR NO. PARTICULARS PAGE NO
01 FRONT PAGE 1
02 INDEX 2
03 PROJECT HIGHLIGHTS 3
04 BACKGROUND OF PROMOTER 4-5
05 SCHEME AND OBJECTIVES 6
06 BACKGROUND OF PROJECT 7
07 INTRODUCTION 8
08 FLOW CHART 9
09 BASIC AND PRESUMPTIONS 12
10 LAND 13
11 POLLUTIONS NORMS 14
12 CIVIL WORKS 15
13 PLANT AND MACHINERY 16
14 DETAILS OF MISC. ASSETS 17
15 PRELIMINARY AND PREOPERATIVE EXPENSES 18
16 PROVISION FOR CONTINGENCY 19
17 TOTAL COST OF FIXED ASSETS 20
18 DEPRECIATION CALCULATIONS 21
19 RAW MATERIAL 22
20 SALES AND PRODUCTION PER ANNUM 23
21 INSTALLED CAPACITY 24
22 DETAILS OF WAGES AND SALARIES 25
23 DETAILS OF UTILITIES 26
24 WORKING CAPITAL CALCULATION 28
25 ADMINISTRATIVE, SELLING, MAINTENANCE 29
EXPENSES
26 TERM LOAN REPAYMENT SCHEDULE 30
27 PROJECT COST SUMMARY 31
28 PROFITABILITY STATEMENT 32
30 CASH FLOW STATEMENT 33
31 PROJECT BALANCE SHEET 34
32 DEBIT SERVICE COVERAGE RATIO 35
33 BREAK EVEN ANALYSIS 36
2
PROJECT HIGHLIGHTS
HAJI GHULAM AHMAD
1 NAME OF THE PROMOTER LONE
NH 44 MALAPORA
BUMTHAN ANANTNAG
LOCATION OF UNIT J&K
MANUFACTURING OF THE
LINE OF ACTIVITY WOODEN BOXES
LAND OWNED
S.NO PARTICULARS AMOUNT IN LACS
2 (A) FIXED ASSETS

.00
LAND DEVELOPMENT
.65
CIVIL WORKS
2.10
PLANT AND MACHINERY
.35
MISCELLANAOUS FIXED ASSETS
.18
PRELIMINARY AND PRE OPERATIVE EXPENSES
.09
PROVISION FOR CONTENGENCIES
TOTAL COST OF FIXED ASSETS 3.37
(B) MEANS OF FINANCE
TERM LOAN 3.37
1.01
PROMOTER CONTRIBUTION @30%
2.36
TERM LOAN FROM BANK @70%
WORKING CAPITAL REQUIREMENT 2.63
.66
PROMOTER CONTRIBUTION @25%
1.97
WORKING CAPITAL LOAN @75%
TOTAL COST OF PROJECT 6.00
MANPOWER 5
POWER REQUIREMENT IN HP. 12
BEP IN %AGE 0.23
ADSCR 12.74
3
BACKGROUND OF ENTREPRENEUR
The promoter is basically an entrepreneur who intends to set up the unit for
manufacturing of the wooden boxes (shook’s). Further the unit shall come at
the location national highway Malapora Bumthan Anantnag J&K, also the
promoter can arrange the contribution money for the term loan and working
capital on its own. moreover, the promoter has strong aptitude and calibre to
manage the unit most efficiently. The brief bio-data of the entrepreneur is as
under: -
1 Name Haji Ghulam Ahmad Lone
2 Son Of Late Ab. Khaliq Lone
3 Residence Lalipora, Malapora Anantnag, Kmr.
4 Marital Status Married
5 Nationality Indian
7 Contact Number 9906701010
8 Present Status Unemployed
9 Bank Liabilities Nil
10 Line of Activity Proposed Manufacturing of Wooden Boxes
11 Experience Yes
12 Proposed Area of Land Owned
 Owned
 Rented
4
13 Location of Unit National Highway-44

Malapora/Bumthan
5
SCHEME AND OBJECTIVES
India has an aspiration to become $9 trillion economy by 2030 and hence the
world’s 3rd largest economy, it could achieve this goal by increasing the
competitiveness, attract more investment and further create sufficient no of jobs
for sustaining population. Recency India as emerged as one of the fastest growing
economy and in the context of world bank ease of doing business it has ranked
130th rank among the countries due to its strong vibrant economy. Further India’s
labour force is expected to touch 160-170 million by 2020 based on the rate of
the population growth and this has created an opportunity and challenge for the
Indian economy. One of the road maps towards this challenge is to develop the
climate of entrepreneurship and skill development. To evolve the business
environment in India Govt of India has taken a lot of steps including giving up
incentives and subsidies to encourage the youth to opt for business as another
career option in contrast to other govt jobs. several schemes /assistances, benefits
are available to the entrepreneurs through different departments of Govt of India.
OBJECTIVES OF THE SCHEME
The main objective of the scheme is to give the information and create awareness
among the entrepreneurs about the various schemes of govt of India which will
result in encouragement and enhancement and thus result in productivity of
enterprises. Further the development in terms of modernisation and with respect
to organisational structure, in terms of propriety, cooperatives are the necessary
objective that are needed to be addressed and to create awareness with respect to
these among the entrepreneurs us the prime objective which will in log run result
in economic development of India.
6
BACKGROUND OF PROJECT
The entrepreneur namely Haji Ghulam Ahmed Lone S/O Ab Khaliq Lone R/O
Lalipora, Malpora Anantnag Kmr has applied to the forest department for grant
of license and further setting of unit within activity of manufacturing of wooden
cardboard boxes. In light of above the entrepreneur has requested for the
preparation Detailed Project Report, and same has been prepared as per the
parameters of forest department. The proposed location of the unit is Lalipora,
Malpora Anantnag Kmr. Further it is to mention that the promoter has its own
land falling under rural area for housing the fixed assets and that the proposed
location has all infrastructural facilities i.e. water supply power supply, road
connectivity etc. The unit shall be operating for 300 working days in a year with
8 working hours a day on single shift basis. The skilled/unskilled workers shall
be engaged locally with an overall employment of 5 persons.
7
INTRODUCTION
Wood is a porous and fibrous structural tissue found in the stems and roots of
trees and other woody plants.it is an organic material, a natural composite of
cellulose fibbers, that are strong in tension and imbedded in a matrix of lignin
that resists compression. Further the wooden boxes constitute one of the
important segments of the industry. A wooden box is a container made of wood
for storage or as a shipping container.
Wooden boxes are often used for heavy duty packaging when: -
 High strength is needed for heavy and difficult loads

 Long term warehousing may be needed
 Large size is required
 Rigidity
 When stacking strength is critical
Boxes and crates are not the same. If the sheathing of the container (plywood,
lumber, etc.) can be removed, and a framed structure will remain standing, the
container would likely be termed a crate. If removal of the sheathing resulted in
there being no way of fastening the lumber around the edges of the container, the
container would likely be termed a wooden box. The strength of a wooden box is
rated based on the weight it can carry before the cap (top, ends, and sides) is
installed. "Skids" or thick bottom runners, are sometimes specified to allow
forklift trucks access for lifting. Performance is strongly influenced by the
specific design, type of wood, type of fasteners, workmanship, etc. Some boxes
have handles hand holes, or hand holds.
8
FLOW DAIGRAM
Obtaining Clearance Civil Works of

END
Installing the
from Various Dept, Prop. Machines Etc,
Construction
Project identification Etc,
STAR Produce the
Goods
T
Hiring
Getting the Finance Etc, Ordering
manpower,
Machines Etc,
Training
Finished product
9
Market for wooden boxes

Sound transportation of products can only be achieved if the product is packed
according to the required needs. Fragile, heavy and unusually shaped products
can’t be packed in boxes. They require a special kind of packaging which can
easily be provided by the wooden crates as they are custom made according to
the specifications of the product to be packaged. Wooden crates being durable
and able to handle transportation of heavy product are the potential packaging
option as they are designed in accordance with the size, and weight capacity of
the product to be transported. It allows the product to be transported safely
without any kind of damage to the product along with good ventilation for the
product if required. The wooden crates market is expected to rise owing to its
resource friendly raw material and easy manufacturing process.
 Wooden Crates Market- Market Dynamics

Wooden crates are strong, durable and termite resistant with a feature to handle
heavy load products. It is often made from the high-grade woods, and finely
finished with water resistance. They have an option of customization to make
do with the customers’ requirements. Crates can be made available to the
customers in two forms, either fully assembled for immediate use or in a flat
pack which can be assembled by the customers afterward and can easily by
repaired anywhere. Shipping industry prefers the use of wooden crates as they
use natural resources and the processing cost is comparatively lesser than other
crates. Investment costs in the manufacturing of wooden crates are much lesser
due to their design simplicity. Primary factor fuelling the wooden crates market
is the durable nature of wooden crates as they can bear the weight of multiple
stacking and are manufactured without any toxic treatments thereby doesn’t
pose any harmful effects on the workers. However, the wooden crates are heavy
10
to handle and require large spaces to be stored which as the barrier for the growth
of the wooden crates market. Moreover, another limiting factor for the wooden
crates market is their disposal process which is very tedious and time
consuming. Customization being the main trend in wooden crates market is the
sole factor attracting the attention of potential customers.
 Wooden Crates Market- Market Segmentation

Wooden crates market can be segmented on the basis of wood type, and
applications. On the basis of wood type, the wooden crates market can be
segmented into pine wood, timber wood and others. Wood is the key raw
material for wooden crates and can be manufactured from a variety of wood
types. In addition, the raw material of wooden crates is resource friendly and
easily available. On the basis of applications, the wooden crates market can be
segmented into agricultural produce, auto parts, piping and tubing material,
vehicles, retail products and others. As the wooden crates are built according to
the customer’s specifications, it can be produced for any type of product, thus
making wooden crates a packaging type which can utilized by different end
users.
11
BASIC ASSUMPTIONS AND PRESUMPTIONS
1. WORKING HOURS /SHIFT = 8 HRS

2. NO. OF SHIFT/DAY = 1
3. WORKING DAYS = 300
4. TOTAL NO. OF WORKING HOURS = 2400 HRS
5. WORKING EFFICENCY = 70%
6. TIME PERIOD FOR ACHIEVING MAXIMUM= 3 YEARS
CAPACITY UTILIZATION
7. LABOUR CHARGE = AS PER THE MINIMUM WAGES
ACT OF STATE GOVT.
8. RATE OF INTREST ON WORKING CAPITAL = 13% P.A
9. RATE OF INTREST ON FIXED CAPITAL = 11.90 P. A
10.OPERATIVE PERIOD OF THE PROJECT = 5 YEARS
11.VALUE OF RAW MATERIAL, PACKING = AS PER THE
LOCAL MARKET RATES ON WHOLE MATERIALS AND
OTHERS SALE BASIS
12.CONSTRUCTION CHARGES = RS NILL
13.BREAK EVEN POINT = CALCULATED ON FULL CAPACITY
UTILIZATION BASIS
14.PAY BACK PERIOD = 5 YEARS
12
LAND
The promoter namely Haji Ghulam Ahmed lone S/O Late Ab Khaliq lone has
arranged his own land at Lalipora Butham, Malpora Anantnag Kmr for
establishing the said unit as per the report and information provided by the said
promoter. Further the proposed location for the unit has all the infrastructural
facilities viz power supply, water supply, road connectivity etc for the unit to
become functional and run smoothly.
13
POLLUTION CONTROL
Pollution being one of the main concerns of today’s world, and its control is
necessary to save the environment as well as the earth for the sustainable
development and survival of the life on the earth. In this regard the promoter has
agreed that he will strictly adhere to pollution control norms as and when shall be
implemented further he will use all the possible measures device and green
technology to deduce the pollution. Further the promoter has assured to obtain
necessary consent from the state pollution control board and follow strictly
the rule and regulations of the said board.
14
CIVIL WORKS
The land is already developed one and does not require any development as the
basic infrastructural facilities are available at the proposed location of the said
unit. The main requirement is the construction of civil works for carrying out the
proposed activity will be the working shed where the main plant and machinery
will be installed for the operation of the unit and the finished product store for the
storage of finished product.
CIVIL WORKS
DIMENSIONS IN
S.N FEET ARE RAT AMOUN
PARTICULARS
O A E T
L B H
3 1
1 WORKING SHED 60 0 4 1800 28 .50
FINISHED PRODUCT 2 1
3 SHED 20 0 2 400 33 .13
TOTAL PROPOSED
CONSTRUCTION COST 2200 .64
CIVIL ENGINEERING FEE@2% .01
TOTAL CIVIL WORKS COST .65
15
PLANT AND MACHINERY
The cost of the plant and machinery is the most important aspect of the project,
as summarized below on basis of latest available quotation adjusted with possible
escalation. Further the plant and machinery are summed as the cost of machinery,
loading/unloading carriage and further installation and commissioning. Also, the
freight for rail, transit insurance and GST are also included.
S.NO PARTICULARS QUANTITY RATE AMOUNT

VERTICAL WOOD CUTTING BEND
SAW MACHINE AND ALLIED PARTS
1
1 1.10 1.10
2 12 HP MOTOR FOR THE BEND SAW 1 .30 .30
GRINDER FOR SHARPENING THE SAW
3
TEETH 1 .11 .11
power distribution system (complete job),
viz,
STARTER, conduits, wires, panels, cables,
6 Mcb, db, Etc. C.J .20 .20
TOTAL 1.71
GST @18% .31

LOADING, UNLOADING, CARRIAGE, INSTALLATION AND
COMMISSIONING CHARGES @5%
.09
TOTAL AMOUNT 2.10
16
MISC. FIXED ASSETS
Fixed assets and machinery which does not get involved in the direct
manufacturing process may be referred as the miscellaneous fixed assets. These
include the items of furniture office, machinery, equipment’s, tools, vehicles, D.G
set, transformers, boilers, piping system, laboratory equipment, workshop
equipment, effluent treatment plant, firefighting equipment’s etc.
PROPOSED MISC. FIXED ASSETS

S.NO PARTICULARS QUANTITY RATE AMOUNT(LACS)
1 Furniture & Fixtures LS .06 .06
2 Firefighting Equipment’s 2 .05 .10
8 Tools and Testing Equipment’s CJ .04 .04

Foundation for Installation of
9 Machinery CJ .15 .15
TOTAL AMOUNT .35
17
PRELIMINARY AND PRE-OPERATIVE EXPENSES
PRELIMINARY EXPENSES: - These are the type expenses which are incurred at
preliminary stage i.e. for identifying the project, conducting the market survey,
preparation of feasibility report, printing and posting expenses, listening fees,
stamp duty, fee to the managers and registrars if any.
PREOPERATIVE EXPENSES: - Preoperative expenses are those expenses incurred
by a unit before commencement of commercial operations, or before starting to

earn income. Some expenses of this nature are establishment expenses, rates,
taxes, travelling expenses, insurance charges, mortgage expenses, start-up
expenses, miscellaneous expenses, and commitment charges on borrowing.
Financial institutions allow 20-25% expenses delay in project implementation
which are common.
S.N AMOUNT(LACS
O PARTICULARS )
A PROPOSED PRELIMINARY EXPENSES
FOREST REGISTRATION FEE, POLLUTION FEE,

1 ELECTRICAL FEE, MUNICIPAL FEE IF ANY .15
PROJECT REPORT PREPARATION FEE, BLUE PRINTS,

2 SURVEY, QUOTATIONS, FOR MACHINERY ETC. .02
PROPOSED PREOPERATIVE EXPENSES

B
PRINTING AND STATIONERY, TRAVELLING AND
CONVEYANCE EXPENSES,
2 COMMUNICATION EXPENSES ETC .01
TOTAL AMOUNT .18
18
PROVISION FOR CONTINGENCIES
Provision for contingency for this particular project has been made @ 3% on the
non-firm costs of the project i.e. Civil works, plant and machinery, and misc.
fixed assets. The purpose for this provisioning is to take care of any unforeseen
as well as escalation in the cost of above items during the course of
implementation of the project and has been calculated to be 0.9 lacs as
summarized below the cost of fixed assets.
S.NO. PARTICULARS AMOUNT (LACS)

1 CIVIL WORKS .65
2 PLANT AND MACHINERY 2.10
3 MISC. FIXED ASSETS .35
TOTAL 3.10
CONTINGENCY @ 3% .09
CIVIL WORKS
PLANT AND MACHINERY
MISC. FIXED ASSETS
19
COST OF FIXED ASSETS
S.NO PARTICULARS AMOUNT IN LACS

1 LAND DEVELOPMENT .00
2 CIVIL WORKS .65
5 PRELIMINARY AND PREOPERATIVE EXPENSES .18
TOTAL COST OF FIXED ASSETS 3.28
6 PROVISION FOR CONTINGENCIES .09

TOTAL COST OF FIXED
ASSETS 3.37
Chart
LAND DEVELOPMENT
CIVIL WORKS
PLANT AND MACHINERY
MISC. FIXED ASSETS
PRELIMINARY AND
PREOPERATIVE EXPENSES
TOTAL COST OF FIXED ASSETS
PROVISION FOR
CONTENGENCIES
20
DEPRECIATION CALCULATION
DEPRECIATION BY WDV METHOD (WRITTEN DOWN VALUE METHOD)

YEAR YEAR YEAR YEAR YEAR
S.NO. PARTICULARS 1 2 3 4 5
A) PLANT AND MACHINERY
1 OPENING BALANCE 2.10 1.78 1.52 1.29 1.09
2 LESS: DEPRECIATION 15% .31 .27 .23 .19 .16
3 CLOSING BALANCE 1.78 1.52 1.29 1.09 .93
B) BUILDING AND CIVIL WORKS
1 OPENING BALANCE .65 .61 .57 .53 .50
2 LESS: DEPRECIATION@6.25% .04 .04 .04 .03 .03
3 CLOSING BALANCE .61 .57 .53 .50 .47
C) MISC. FIXED ASSETS
1 OPENING BALANCE .35 .32 .28 .26 .23
2 LESS: DEPRECIATION 10% .04 .03 .03 .03 .02
3 CLOSING BALANCE .32 .28 .26 .23 .21
TOTAL DEPRECIATION .39 .34 .29 .25 .22

DEPRECIATED VALUE 2.71 2.37 2.08 1.83 1.61
DEPRECIATION BY STRAIGHT LINE METHOD
YEAR YEAR YEAR YEAR YEAR
S.NO. PARTICULARS 1 2 3 4 5
1 PLANT AND MACHINERY @10% .21 .21 .21 .21 .21
2 CIVIL WORKS @6.5% .04 .04 .04 .04 .04
3 MISC. FIXED ASSETS @15% .05 .05 .05 .05 .05
21
TOTAL DEPRECIATION .30 .30 .30 .30 .30
DETAILS OF RAW MATERIAL REQUIRED OF THE UNIT AT

100% CAPACITY UTILIZATION
Assumptions: -
1. Single shift of 8 hours per day

2. 25 days per month
3. 300 days per year
S.
NO. PARTICULARS UNIT QTY RATE AMOUNT(LACS)
A) RAW MATERIAL REQUIREMENT
POPULAR WOODEN LOGS FOR

1 MAKING BOXES CFT 6000 200 12.00
WOOD OF OTHER SPECIES FOR

MAKING PANELLING AND
2 OTHER ITEMS, ETC. CFT 12000 550 66.00
4 NAILS AND OTHER ITEMS ETC. MT LS .05
TOTAL AMOUNT 78.05
22
SALES/PRODUCTION PER ANNUM
At the inception of the operation it is not possible to operate plant at higher level even
if the technology is latest. There are many constraints like raw material shortage
limited power, marketing problem that limit the capacity utilization of plant. However,
the capacity utilization of the plant will increase over the years and hence will result
in increased sales/production capacity of plant.
SALES AND COST OF PRODUCTION PER ANNUM

AMOUNT
S.NO PARTICULARS UNIT QUANTITY RATE (LACS)
BY SALE OF WOODEN
BOXES
(7.5"x 20"x 15)
1 NO'S 36000 60 21.60
BY SALE OF WOODEN
PANELLING AND OTHER
ITEMS ETC
2 CFT 12000 630 75.60
TOTAL AMOUNT 97.20
23
CHART
1
2
INSTALLED CAPACITY
 No of working days per annum 300 days

 No of hours per day 8hrs
 No of shifts per day 1
DESCRIPTION INSTALLED CAP./ANNUM
 Manufacture of wooden boxes/shook’s 30 boxes/hr/240 per

day
 Manufacture/sawing of wooden panelling etc. 320 running ft/hour
ANNUAL PURCHASES 78.05 LACS

ANNUAL SALES 97.20 LACS
24
S CAP. ANNUAL ANNUAL

YEAR OF OPERATION
NO. UTILIZATION % PURCHASES SALES
1 YEAR -1 70 54.64 68.04
2 YEAR-2 75 58.54 72.90
3 YEAR-3 80 62.44 77.76
4 YEAR-4 85 66.34 82.62
5 YEAR-5 90 70.25 87.48
DETAILS OF SALARY AND WAGES PER ANNUM
Assumptions: -
1. Single shift of 8 hours per day

2. 25 days per month
3. 300 days per year
S SALARY PER
NO. PARTICULARS NO. SALARY/MONTH ANNUM (LACS)
1 MANAGER (SELF) 1 0 .00
2 ACCOUNTANT 1 7000 .84
TECHNICAL STAFF
25
1 OPERATOR 1 10000 1.20

SEMI SKILLED
3 WORKER 2 3000 .72
GRAND TOTAL 5 20000 2.76
BENEFITS AND
FRINGES@ 1.5% .04
TOTAL
WAGES 2.80
UTILITIES REQUIREMENT PER ANNUM
26
POWER REQUIREMENT
S NO. PARTICULARS LOAD UNIT
1 Total connected load in Horse Power 12 HP
2 Total connected load in KW 8.9484 KW
3 Total connected load in KVA 11.19 KVA
4 No. of working days 300 Days
5 No. of working Hours per day 8 Hours
6 power from PDD Department 21476.16 Units
8 Power Tariff from PDD Dept. @ RS 3/unit .64 Rs
TOTAL AMOUNT .64 Lacs
27
OTHER EXPENSES PER ANNUM
S.NO PARTICULARS AMOUNT (LACS)
1 RENT 0
2 POSTAGE AND STATIONERY 10000
3 TELEPHONE 3000
4 CARRIAGE 70000
5 INSURANCE 10000
6 MISC. EXPENSES 5000
TOTAL AMOUNT 98000
28
DETALS OF WORKING CAPITAL REQUIRED AT

DIFFERENT LEVELS
Working capital is the life blood and control nerve centre of the business. No
business can run without the adequate amount of working capital. Estimate of
working capital requirement should be made in advance so that the arrangement
can be made to procure adequate working capital which depends upon nature and
character of business, scale of operations, credit policy etc. the gross amount of
working capital is the sum total of stock of raw material, work in progress, stock
of finished goods, receivables by and are tabulated below in table.
GROSS WORKING CAPITAL
S. IST 2ND 3RD 4TH 5TH

NO. PARTICULARS DAYS YEAR YEAR YEAR YEAR YEAR
CAPACITY
1 UTILIZATION 70% 75% 80% 85% 90%
STOCK OF RAW
2 MATERIAL 6 1.09 1.17 1.25 1.33 1.40
3 WORK IN PROGRESS 1 .19 .21 .22 .23 .25

STOCK OF FINISHED
4 GOODS 2 .38 .41 .44 .47 .49
5 RECEIVABLE BY 5 .96 1.03 1.10 1.17 1.24

TOTAL CURRENT
ASSETS 2.63 2.82 3.01 3.20 3.38
PROMOTERS
CONTRIBUTION @25%
(MARGIN)
.66 .71 .75 .80 .85
BANK FINANCE 75% 1.97 2.12 2.26 2.40 2.54
INTEREST @ 13% .26 .27 .29 .31 .33
29
ADMINISTRATIVE EXPENSES
S. NO. YEAR CAPACITY SALE Adm.Exp AMOUNT (LACS)

UTILIZATION
1 1ST 70% 68.04 1% .68
2 2ND 75% 72.90 1% .73
3 3RD 80% 77.76 1% .78
4 4TH 85% 82.62 1% .83
5 5TH 90% 87.48 1% .87
REPAIRS AND MAINTENANCE OF FIXED ASSETS
S. YEAR TOTAL COST COST OF AMOUNT (LACS)

NO OF MAINTENANCE@0.5%
FIXED
ASSETS
1 1ST 3.10 1.50% .05
2 2ND 3.10 2.00% .06
3 3RD 3.10 2.50% .08
4 4TH 3.10 3.00% .09
5 5TH 3.10 3.50% .11
30
TERM LOAN REPAYMENT SCHEDULE
S NO. PARTICULARS AMOUNT LACS
1 CAPITAL EXPENDITURE 336874.61
2 PROMOTERS CONTRIBUTION (@30%) 101062.383
3 TERM LOAN (70% OF CE) 235812.227
4 REPAYMENT SCHEDULE 5
5 RATE OF INTEREST 12.5
6 LOAN EMI Rs. 5,305.29
TOTAL
PRINCIPAL OPENING CLOSING
YEAR INTEREST(Lacs) PAYMENT
(Lacs) BALANCE(Lacs) BALANCE(Lacs)
(Lacs)
A B (A+B)
2019 .36 .27 .64 2.36 2.00
2020 .41 .23 .64 2.00 1.59
2021 .46 .17 .64 1.59 1.12
2022 .53 .11 .64 1.12 .60
31
PROJECT COST SUMMARY
S NO. PARTICULARS AMOUNT(LACS)

1 LAND AND SITE DEVELOPMENT .00
2 CIVIL WORKS .65

PRELIMINARY AND PREOPERATIVE
EXPENSES
5 .18
6 PROVISION FOR CONTINGENCY .09
FIXED ASSETS 3.37

WORKING CAPITAL REQ. AT 70%
UTILIZATION
1 2.63
TOTAL COST OF PROJECT 6.00
2023 .60 .04 .64 .60 .00
32
PROFITABILITY STATEMENT
S IST 2ND 3RD 4TH 5TH

NO. PARTICULARS CONST.YEAR YEAR YEAR YEAR YEAR YEAR
CAPACITY
1 UTILIZATION 100% 70% 75% 80% 85% 90%
2 SALES 97.20 68.04 72.90 77.76 82.62 87.48
(A) COST OF PRODUCTION

1 RAW MATERIAL 78.05 54.64 58.54 62.44 66.34 70.25
2 SALARY AND WAGES 2.80 1.96 2.10 2.24 2.38 2.52
3 UTILITIES .64 .45 .48 .52 .55 .58
4 OTHER EXPENSES .98 .69 .74 .78 .83 .88
MAINTENANCE OF
5 FIXED ASSETS .05 .06 .08 .09 .11
TOTAL COST OF PRODUCTION 57.78 61.92 66.06 70.20 74.34

GROSS PROFIT BEFORE
INTREST 10.26 10.98 11.70 12.42 13.14
(B) FINANCIAL EXPENSES

INTREST ON TERM
1 LOAN .27 .23 .17 .11 .04
2 INTREST ON W/C LOAN .26 .27 .29 .31 .33
3 DEPRECIATION .39 .34 .29 .25 .22
TOTAL .92 .84 .76 .67 .59
PROFIT BEFORE TAX 9.34 10.14 10.95 11.75 12.55
TAX .00 .00 .00 .00 .00
PROFIT AFTER TAX 9.34 10.14 10.95 11.75 12.55
33
CUMMULATIVE PROFIT 9.34 19.48 30.43 42.18 54.73
S 0 IST 2ND 3RD 4TH 5TH

NO. PARTICULARS YEAR YEAR YEAR YEAR YEAR YEAR
A - SOURCE OF FUNDS(INFLOW)
PBIT AFTER
1 DEPRECIATION 9.87 10.64 11.41 12.17 12.93
2 ADD DEPRECIATION .39 .34 .29 .25 .22

INCREASE IN TERM
3 LOAN 2.36 .00 .00 .00 .00 .00
4 INCREASE IN W.C LOAN 1.97 2.12 2.26 2.40 2.54

INCREASE IN SHARE
5 CAPITAL 1.01 .00 .00 .00 .00 .00
TOTAL 3.37 12.23 13.10 13.96 14.82 15.68
B- APPLICATION OF FUNDS (OUTFLOW)

TOTAL FIXED CAPITAL
1 INVESTMENT 3.19
2 TAXES .00 .00 .00 .00 .00 .00

PRE & POST OPERATIVE
3 EXPENSES .18
INCREASE IN CURRENT
4 ASSETS 2.63 2.82 3.01 3.20 3.38
DECREASE IN TERM
5 LOAN .36 .41 .46 .53 .60
6 INTREST ON TERM LOAN .27 .23 .17 .11 .04
7 INTREST ON W. C .26 .27 .29 .31 .33
TOTAL 3.37 3.53 3.73 3.94 4.14 4.35
OPENING BALANCE .00 8.71 18.07 28.09 38.77
34
SURPLUS/DEFICIT .00 8.71 9.36 10.02 10.68 11.33

CLOSING
BALANCE .00 8.71 18.07 28.09 38.77 50.10
CASH FLOW STATEMENT
PROJECTED BALANCE SHEET

NO. PARTICULARS 0 YEAR YEAR YEAR YEAR YEAR YEAR
LIABILITES
PROMOTERS
1 CAPITAL 1.01 1.01 1.01 1.01 1.01 1.01
RESERVES &
2 SURPLUS 9.34 19.48 30.43 42.18 54.73
3 TERM LOAN 2.36 2.36 2.00 1.59 1.12 .60

WORKING
4 CAPITAL LOAN 1.97 2.12 2.26 2.40 2.54
TOTAL 3.37 14.68 24.60 35.28 46.71 58.87
ASSETS
GROSS FIXED
1 ASSETS 3.10 3.10 2.71 2.37 2.08 1.83
LESS:
2 DEPRECIATION .00 .39 .34 .29 .25 .22
NET FIXED
3 ASSETS 3.10 2.71 2.37 2.08 1.83 1.61
PRELIMNARY
AND PRE .18 .18 .18 .18 .18 .18
OPERATIVE
4 EXPENSES
5 CURRENT ASSETS .00 2.63 2.82 3.01 3.20 3.38
35
6 CASH IN HAND .09 9.16 19.23 30.01 41.50 53.70
TOTAL 3.37 14.68 24.60 35.28 46.71 58.87
CALCULATION OF DEBT SERVICE COVERAGE RATIO

(D.S.C.R)

NO. PARTICULARS YEAR YEAR YEAR YEAR YEAR
A NET PROFIT 9.34 10.14 10.95 11.75 12.55
ADD DEPRECIATION .39 .34 .29 .25 .22
TOTAL: - A 9.73 10.48 11.24 12.00 12.77
B PAYMENTS; -
ON TERM LOAN
INTREST .27 .23 .17 .11 .04
PRINCIPAL
(INSTALLMENT) .36 .41 .46 .53 .60
ON WORKING CAPITAL
INTREST .26 .27 .29 .31 .33
TOTAL: - B .89 .91 .93 .95 .97
D.S.C.R = A/B 10.89 11.50 12.08 12.66 13.21

AVERAGE D.S.C. R 12.7
36
37
BREAK EVEN ANALYSIS
1ST 2ND
S.NO PARTICULARS YEAR YEAR
1 CAPACITY UTILIZATION 70% 75%
(A) SALES REALIZATION 68.04 72.90
(B) VARIABLE COST (I)
1 RAW MATERIAL 54.64 58.54
2 UTILITIES AND OTHER EXPENSES 1.14 1.22
4 INTREST ON W.C .26 .27
5 SALARY &WAGES 1.18 1.26
TOTAL 57.21 61.29
CONTRIBUTION (1) 10.83 11.61
(C) SEMI- VARIABLE/ FIXED COST (II)
1 SALARY &WAGES .78 .84
2 MAINTAINANCE OF F. ASSETS .05 .06
3 ADMINISTRATIVE. EXPENSES .68 .73
4 INTREST ON TERM LOAN .27 .23
5 DEPRECIATION .39 .34
TOTAL (2) 2.18 2.19
(D) B.E.P(AS %AGE OF CAPACITY) 0.20 0.19
B.E.P IN SALES REVENUE (R.S) = (BEP
(E) IN%AGE*SALES) 13.66 13.78
PROFIT VOLUME RATIO=
(F) CONTRUBUTION/SALES 15.92 15.92
38

AND Techno-Economic Cum Pre-Investment Feasibility Report: Manfacturing of Wooden Boxes/Shooks

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AND Techno-Economic Cum Pre-Investment Feasibility Report: Manfacturing of Wooden Boxes/Shooks

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Industrial and Engineering Consultancy ® (Govt.

S.NO PARTICULARS AMOUNT IN LACS

2 (A) FIXED ASSETS

TOTAL COST OF FIXED ASSETS 3.37

(B) MEANS OF FINANCE

TERM LOAN 3.37

WORKING CAPITAL REQUIREMENT 2.63

TOTAL COST OF PROJECT 6.00

POWER REQUIREMENT IN HP. 12

BEP IN %AGE 0.23

1 Name Haji Ghulam Ahmad Lone

2 Son Of Late Ab. Khaliq Lone

3 Residence Lalipora, Malapora Anantnag, Kmr.

4 Marital Status Married

7 Contact Number 9906701010

8 Present Status Unemployed

9 Bank Liabilities Nil

10 Line of Activity Proposed Manufacturing of Wooden Boxes

12 Proposed Area of Land Owned

13 Location of Unit National Highway-44

SCHEME AND OBJECTIVES

OBJECTIVES OF THE SCHEME

 High strength is needed for heavy and difficult loads

Obtaining Clearance Civil Works of

Market for wooden boxes

 Wooden Crates Market- Market Dynamics

 Wooden Crates Market- Market Segmentation

BASIC ASSUMPTIONS AND PRESUMPTIONS

1. WORKING HOURS /SHIFT = 8 HRS

CIVIL ENGINEERING FEE@2% .01

TOTAL CIVIL WORKS COST .65

PLANT AND MACHINERY

S.NO PARTICULARS QUANTITY RATE AMOUNT

GST @18% .31

TOTAL AMOUNT 2.10

MISC. FIXED ASSETS

PROPOSED MISC. FIXED ASSETS

1 Furniture & Fixtures LS .06 .06

2 Firefighting Equipment’s 2 .05 .10

8 Tools and Testing Equipment’s CJ .04 .04

TOTAL AMOUNT .35

PRELIMINARY AND PRE-OPERATIVE EXPENSES

PREOPERATIVE EXPENSES: - Preoperative expenses are those expenses incurred

by a unit before commencement of commercial operations, or before starting to

A PROPOSED PRELIMINARY EXPENSES

FOREST REGISTRATION FEE, POLLUTION FEE,

PROJECT REPORT PREPARATION FEE, BLUE PRINTS,

PROPOSED PREOPERATIVE EXPENSES

TOTAL AMOUNT .18

PROVISION FOR CONTINGENCIES

S.NO. PARTICULARS AMOUNT (LACS)

3 MISC. FIXED ASSETS .35

COST OF FIXED ASSETS

S.NO PARTICULARS AMOUNT IN LACS

2 CIVIL WORKS .65

3 PLANT AND MACHINERY 2.10

4 MISC. FIXED ASSETS .35

5 PRELIMINARY AND PREOPERATIVE EXPENSES .18

TOTAL COST OF FIXED ASSETS 3.28

6 PROVISION FOR CONTINGENCIES .09

PLANT AND MACHINERY

MISC. FIXED ASSETS

DEPRECIATION BY WDV METHOD (WRITTEN DOWN VALUE METHOD)