Propritor : MR.

Satish Ashok Chavan

ANNEXURE NO.6
Assumption and workings notes to the Financial Statements of the Project Report:
1 Revenue In Lakhs
Order of Ladies And Jents Footwear
Sales Revenu Per Month : 2.00
Cost par Order : 1.30
Monthly Revenue After Tax and Expensess : 0.50
Yearly Revenue 6.02
First year Revenue for 6 months 3.01
Every year the Revenue is estimated to increase
by 20%.

2 Operational Cost
The material is estimated to cost at 65.25% of sales price.
The cost for 1 year is 15.66

3 Salary [A]
S.No. Category of Employee No.of Salary per Salary per
Employees Month Annuam
1 Skilled Worker 1 12,000.00 1,44,000.00
2 Unskilled Worker 2 9,000.00 2,16,000.00
3 Supervisor 1 9,000.00 1,08,000.00
Total 4 4,68,000.00
Note: Increament in salary is taken at 5% per annum

3 Direct And Indirect Employment Potential

S.No. Category of Employee No.of
Employees
1 Skilled Worker 1
2 Unskilled Worker 2
3 Supervisor 1
4 Emplyment from Owner Fammily 2
5 Salesman 5
6 Job workers for Packaging 2
7 Mini Tempo on order basis 2
Total 15
Note : Jobworkers, Salesman & Transportaion Cost has been Include in Cost of Goods Sold

4 Power
Electricity Charges is estimated at Rs.4000/- per month and provision made for increase
in rates @ 5% per annuam

5 Depreciation:
Depreciation is calculated at the rates prescribed under
the Income Tax Act. Separate Annexure made

6 Interest:
Interest on term loan is calculated at 14% per annum
Term loan will be repaid in 5 year

7 Administration Expenses:
Include commission, Telephone expenses and other
Office maintenance expenses.
It is estimated at Rs.2000/- per month and provision made for increase in cost
at 5% per annuam

CONCLUSION:
On examining the technical aspects like availability of raw materials, availability of skills and
opportunity of market, it can be stated that the project is technically feasible. The income
generated is enough for the repayment of loan and for the better prospects of the unit.
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