ACKNOWLEDGEMENT OF THANKS

It is our first and moral duty to give moral thanks to the financial
institutions such as Khadi Village Industries Corporation &
Maharashtra State Khadi & Village Industries Board and Mumbai, for
Margin money and Bank for assisting & providing loan under the
“PMIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME
(PMEGP). It is due to their assistance the project is able to
accomplish the opportunity and benefit of “low interest laon” than
other bank. Due these facilities the project possessor may come up
in his life and can make good status such as economically and
socially.

1
 INDEXHIGHT LIGHTS OF THE PROJECT

The major highlights of the project are as follow:-

1. TOTAL COST OF PROJECT Rs. 2500000

2. OWN CONTRIBUTION (5%) Rs. 1250000
3. BANK FINANCE (95%) Rs. 2375000
4. INTEREST FIRST YEAR @ 14% P.A. Rs. 197250
5. GROSS SALES FOR FIRST YEAR Rs. 6660000
6. OPERATING EXPENSES FIRST YEAR Rs. 6102250
7. OPERATING PROFIT FIRST YEAR Rs. 686750
8. NET PROFIT FOR FIRST YEAR Rs. 525725
9. INCOME TAX FOR FIRST YEAR Rs. 161025
10. EMPLOYMENT (NOS.) 20 PERSONS
11. POPULATION OF UNIT PLACE 4150
12. CASH ACCRUALS FOR THE FIRST YEAR Rs. 625725
13. D.S.C.R. FOR FIRST YEAR 1.27
14. AVERAGE D.S.C.R. 1.93
15. BREAK EVEN POINT FIRST YEAR 44.88%

2
 PROJECT AT GLANCE

1 NAME OF THE UNIT MRS. PRATIBHA MANOJ SAVE

NAME OF BENEFICIARY
2 FATHERS/ HUSBANDS NAME MR. MANOJ BALCHANDRA SAVE
3 PRESENT & PERMANENT FULL ADDRESS CHINCHANI PATILWADA, TAL –
WITH PIN NO. DAHANU, DIST- PALGHAR. PIN – 401503
4 CATEGORY & CAST OBC HINDU
(SC/ST/OBC/SBC/WOMEN/MINORITY/OTHE
R)
5 DATE OF BIRTH 7/09/1975
6 PROJECT PROPOSED ADDRESS FULL WITH CHINCHANI PATILWADA, TAL –
PIN NO. DAHANU, DIST- PALGHAR. PIN – 401503
7 ACTIVITY (NATURE OF PROJECT) PRODUCTION OF VERMICOMPOST,
(VERMICULTURE AND WASTE
DISPOSAL)
8 NAME OF PROPOSED INDUSTRY PRODUCTION OF VERMICOMPOST,
(VERMICULTURE)
9 TOTAL PROJECT COST A)CAPITAL EXPENDITURE: Rs. 1000000
B) WORKING CAPITAL: Rs. 1500000
TOTAL : Rs. 2500000
10 MEANS OF FINANCE A) OWN CONTRIBUTION: Rs. 1250000
B) BANK CONTRIBUTION:Rs. 2375000
TOTAL: Rs. 2500000
11 MARGIN MONEY FROM KVIC Rs. 875000
(35% ON 2500000)
12 INSTALLED CAPACITY 80%
13 EMPLOYMENT 21 PERSONS
14 NAME OF THE FINANCING BANK WITH BANK OF MAHARASHTRA, DAHNU
FULL ADDRESS BRACH
15 PREVIOUS DUES FROM ANY OTHER NO
FINANCIAL INSTITUTE

3
 PROJECT OF REPORT

1 NAME OF THE ENTREPRENUER MRS. PRATIBHA MANOJ SAVE

2 ADDRESS CHINCHANI PATILWADA, TAL –

DAHANU, DIST- PALGHAR. PIN – 401503

3 DATE OF BIRTH 7/09/1975

4 CATEGORY ENTREPRENUER OBC HINDU

5 EDUCATION QUALIFICATION SSC

6 WORKING EXPERIENCE SUBSTANCIAL

7 IS THE PROPOSED UNIT / EXISING PROPOSED

8 ADDRESS OF THE PROPOSED CHINCHANI PATILWADA, TAL –

9 NAME OF THE INDUSTRY / UNIT
10 ACTIVITY OF THE UNIT
11 TYPE OF UNIT
DAHANU, DIST- PALGHAR. PIN – 401503
ENGINEERING AND NON
CONVENTIONAL ENERGY
PRODUCTION OF VAEMICOMPOST
VERMICULTURE AND WASTE DISPOSAL
INDIVIDUAL

12 WORKING DAYS 240 DAYS

13 WORKING HOURS / SHIFTS WHOLE DAY (ONE SHIFT = 8HRS)

14 RRQUIREMENT OF MANPOWER ADMN 03 PERSONS

PROD. ACTIVITY 18 PERSONS
TOTAL 21PERSONS
15 SCHEME K.V.I.C. MARGIN MONEY SCHEMES

16 REQUIREMNT OF CAPITAL A)CAPITAL EXPENDITURE: Rs. 1000000

B) WORKING CAPITAL: Rs. 1500000
TOTAL : Rs. 2500000
17 MEANS OF FINANCE A) OWN CONTRIBUTION: Rs. 1250000
B) BANK CONTRIBUTION:Rs. 2375000
TOTAL: Rs. 2500000

4
 PROJECT DETAILS AT GLANCE
INTRODUCTION

In Maharashtra, particularly district, the Majority of Marginal as well as big farmers use
chemical Fertilizers in about optimum quantity (i.e. about 1700 TONS p.a.) The main crop
cultivated here is rice apart from the production of chikoo, coconut, mango and vegetables,
So consequently the use of Bio fertilizers (organic manure) turns out to be vital.

It is moreover seen in this area that the production of vermin compost is having much
scope due to the structure of vermin-compost using the bed system” practice.

ABOUT THE PROMOTER / ENTREPRENEUR :

Mrs. Pratibha Manoj Save an educated unemployed residing at , Chinchani Patil wada, Tal –
Dahanu, Dist – Palghar. The promoter has taken up the initiative to undertake the
production of vermicompost initially on a medium scale and to a large svale in due course
of time. He has ample and good experience in the production and marketing of composite
fertilizer. The proposed mainly aims at generation of sustained employment in the rural
area as well to cater the need of Bio- fertilizer for the beneficiaries in the area.

Further, the promoter also aims to undertake the marketing as well as demonstrations of
the Bio manure plant training soon after the proposed project starts functioning, so that in
a wider way an awareness can be created among the farmers in the area for the use of bio
manure in near future. For setting up the said unit the finance required from the bank to
the tune of Rs. 2500000/- under the PRIME MINISTER EMPLOYMENT GENERATION
PROGRAMME (PMGEP)

ABOUT THE ORGANISATION :

The unit is a proprietary concern undertaken by Mrs. Pratibha Manoj Save. The business
proposed is of the production of vermin composite fertilizers.

THE MANGEMENT :

The promoter Mrs. Pratibha Manoj Save Is SSC passed from K.D. High School, Chinchani ,
She has an excellent business knowledge and experience in this field. Also she has obtained
a N.O.C. (No objection certificate) from grampanchayat, for establishment of the said unit.

FUTURE BUSINESS PROSPECTS / PLAN :

5
The proposed unit is that of production of vermicompost fertilizer which can be used to
increase the yield of the land. The market of bio fertilizers product is growing day by day
and the demand for it in this area is huge. The proprietor will be receiving good response
from the farmers because of good quality and cheapness of product. Moreover the unit is
surrounded by agriculture land which would help in increase sales. The promoter has
conducted a market survey which revealed that the proposed unit will be able to boast
monopoly in the business. The marketing of the Bio-fertilizers will be undertaken allover
Maharahstra, Mumbai, Vasai, Palghar, Tarapur, Dahanu, Bhiwandi and other taluka’s of
Thane districts.

MANUFACTURING PROCESS AND USE :

Vermi compost is one of the important aspects of farming. It is to prepare and has excellent
properties to enrich the growth of plants. Being organic in nature is it harmless to plants.
Vermicompost is prepared by using earthworms. Infact is the mixture of totally
decomposed fine biomass particles and vermicating. The micro flora bacteria in the guts of
earthworms convert the locked up minerals in the vermicompost, which is readily
accessible by the plants. The significant casting by the earthworms has nearly 10 times
more useful bacterial population than the surrounding soil.

Pure and good quality of vermicompost is soft. Spongy and dark black in color. It increases
the water holding capacity of soil, which in turn increases the per capita yield. Due to
vermicompost the salinity of soil is reduced to a significant extend.

Crops produced using this vermicompost have are better in color flavor and texture. These
crops are safe for consumption as they don’t contain any kind of chemicals

LOCATION OF THE UNIT:

This unit is located at S.No. 203 AT POST CHINCHANI PATILWADA, TAL – DAHANU,
DIST- PALGHAR. PIN – 401503. This location is nearer to the Mumbai- Ahmedabad
national Highway (N.H.8). The location of unit is delimited by infrastructural facilities like
transport, availability of raw material and commercial facilities like banking,
communication and marketing for the product which makes the unit technically viable.

Employment generation

The manufacturing process will help to generate employment as labor is involved in

various operations of unit. The requirement of labor will be easily fulfilled due to easy
availability of cheap labor in the area.

Machinery, equipments and tools:

6
The overall requirements of machinery for the unit is about to the tune of Rs. 1000000.
Price quotations from various suppliers will be invited and the machinery will be
purchased after making proper evaluation in regards to Price, quality and efficiency.

Transportation :
The transport facility is readily available as the proposed unit is situated nearer to the
Railways sation and also to the national Highwat 8. Due to this the manufactured produce
can be easily marketed and sold in the essential area.

STANDARD AND QUALITY CONTROL :

The proposed unit will maintain quality standards and safety precautions. The
manufacturing process will be carried out as per quality standard and best quality of
product will be produced from the best available raw material.

UNIT REGISTRATION FEES:

As per new policy under the scheme, the propriter may register with K.V.I.C. on a
voluntarily basis. 1% (one percent) of the total cost of project will be charged as unit
registration fee. The registration of unit with D.I.C. will be providing various benefits such
as tax incentives which will in turn assist the proprietor in the proficient marketing of her
produce.

PRE- REQUISITE OF FINANCE :

The proprietor desirers to obtain loan from bank under the “PMGEP” through the Khadi
gram Udyog’s Margin Money Scheme, which will be assistance to him to finance the
purchase of Fixed Assets, stock in trade (+Drs-Crs) to setup his own business. The wide
business contacts and ample experience of the proprietor will facilitate his to promote and
sell his product in the market.

The acquirement of Fixed Assets and stock I trade (+Drs-Crs) in the proposed business
requires about Rs. 2500000 on Term Loan facility from the Bank under the khadi Gram
Udyog’s Margin Money Scheme (i.e. Rs. 2375000 on Loan from bank and own contribution
of Rs. 125000). \

PRFITABILITY CALCULATIONS :

PRODUCTION CAPACITY AND BUILD UP :

The Processing capacity of the proposed unit is taken at 80% p.a. on one shift working
whereas on form second year onwards it is assumed to be 85%.

PROFITABILITY :

The projected statement enclosed, shown the profitability covering a period

7
Calculation of expenses :

The wages and salary are anticipated to be Rs. 858000 for the first year. Aslo Direct and
other indirect expenses are anticipated to be Rs. 376000 and Rs. 142000 resoectively.

Depreciation:

Depreciation is calculated @ 10% p.a. on the fixed assets i.e. Rs. 100000 for the first year.

Income tax :

The rate of income is taken as applicable for F.Y. 2019-2020. It is Presumed that these
rates will remain unchanged for the period under Consideration.

Government facilities :

As per the Margin money scheme under the P.M.G.E.P. 35% of the total cost of project to be
made available by DIC, which will be converted into subsidy after 3 years. Progressively
the proprietor will get sales tax exemption and other such benefits under this scheme.

Date :

Mrs. Pratibha Manoj Save)

Proprietor

8
 RAW MATERIALS REQUIRED AT 100%

PARTICULARS UNIT / TON RATE PER TON TOTAL

Dry Grass 3000 600 1800000

Cow Dung:Compost 3675 1000 3675000

Cow Dung 100 650 65000

TOTAL 5540000

Raw material required for the purpose of Manufacturing would be procured from
Mumbai. The input-output ratio is 100:80 and to this extend supplies should not be a
problem. Further it is advisable to have a long term supply arrangement in place.

Raw material required for 1 year is 4432000 @ 80% utilization.

9
 COST OF PROJECT
PROJECTED CAPITAL REQUIREMENT
Total capital required for the proposed unit will be Rs. 2500000

A) Capital expenditure
1) Land is owned by the proprietor Rs. 1000000
2) Shed Construction and Machinery, Tools & Equipments
Total Capital Expenditure Rs. 1000000
B) Working capital
1) Material Rs. 4432000
2) Wages Rs. 858000
3) Expenses Rs. 518000
4) Interest on term loan Rs. 194250
Total Rs. 6002250
c) Total Working Capital Requirement for the Year = 1500562
Working Capital Requirement for 2 Months. One Operating i.e. Rs. 1500000
(6002250/8*2)
Requirement of total capital Rs. 1000000
a) Fixed capital (Capital expenditure) Rs. 1500000
b) Working capital (cash credit)
Total Rs. 2500000
As per the margin money scheme 35% margin money of total project cost will get
from KVIE after disbursement of 95% of total project cost by banle. Hence mean of
finance is as follows:
D) Means of Finance
Particulars Total Project Own Contribution Bank Finance
cost (5%) (95%)
1) Capital expenditure Rs. 1000000 Rs. 50000 Rs.950000
2) Working capital Rs. 1500000 Rs. 75000 Rs. 1425000
Total Rs.2500000 Rs. 125000 Rs. 2375000

As per the margin scheme of DIC at first proprietor should contribute 5% and bank will
finance 95% of the total project cost. Thereafter 35% margin money amt will be recd from
DIC. The amt of margin money will be kept in T.D.R. in the name of the proprietor with
bank for 3 yrs. After 3yrs. The same amt of T.D.R. will appropriate loan account. Bank will
charge interest only on 60% Ultimately margin money amt will not get interest.

10
 SCHEDULE ‘C’

A) Statement showing details of administration &

Production activity & it’s salary & wages:

S. No Particulars Year of Projection

1styear 2ndyear 3rd year 4th year 5th year
1 Skilled 10 person 10 person 10 person 10 person 10 person
Workers
Working Days 300 300 300 300 300
Rate per day 200 210 220 230 240
Total Wages 600000 630000 660000 690000 720000
2 (Unskilled ) 8 Person 8 Person 8 Person 8 Person 8 Person
Working Days 300 300 300 300 300
Rate per Day 75 80 85 90 95
Total Wages 180000 192000 204000 216000 228000
Total 780000 822000 864000 906000 948000

S. No Particulars Year of Projection

1styear 2ndyear 3rd year 4th year 5th year
1 Accountant 1 person 1 person 1 person 1 person 1 person
Per Month 3000 3300 3600 3900 4200
Total Salary 36000 39600 43200 46800 50400
2 Supervisor 1 person 1 person 1 person 1 person 1 person
Per month 2500 2750 3000 3250 3500
Total Wages 30000 33000 36000 39000 42000
3 Watchman 8 Person 8 Person 8 Person 8 Person 8 Person
Per Month 1000 1100 1200 1300 1400
Total wages 12000 13200 14400 15600 16800
Total 78000 85800 93600 101400 109200

B) DETAILS OF DIRECT EXPENSES

S. No Particulars Year of Projection

1st
year 2ndyear 3rd year 4th year 5th year
1 Electricity Charges & 48000 50000 52000 54000 56000
Water
2 Packing Material 328000 348500 369000 389500 410000
Total 376000 398500 421000 443500 466000

11
 C) DETAILS OF INDIRECT EXPENSES

S. No Particulars Year of Projection

1styear 2ndyear 3rd year 4th year 5th year
1 Insurance 40000 40000 40000 40000 40000
2 Telephone & Postage 12000 12500 13000 13500 14000
3 Misc. Expenses 60000 72000 84000 96000 108000
4 Repair & 5000 7000 9000 11000 13000
Maintenance
5 Sundry expenses 25000 26000 27000 28000 29000
Total 142000 157500 173000 188500 204000

12
 SCHEDULE ‘D’
DETAILS OF MARGIN MONEY

The entrepreneur belongs to Reserved Category and also resides in as rural area
consequently he is liable to get 35% margin money of the total cost of project.

Calculation of margin money will be as follows.

Total Cost of project = Rs. 2500000

Total Margin money payable = Rs. 875000(35% of 2500000)

N.B.

1. As per margin money scheme the amount of margin money would be kept in T.D.R.
for 3 years. So the bank would finance 95% loan against total project Cost and the
amount of margin money will be adjusted to loan Account.
2. As per revised scheme bank will not charge any interest on loan disbursed Against
margin money and not give interest on margin money T.D.R.

13
 Statement of Depreciation on Assests:

S. No Particulars 1st year 2nd year 3rd year 4th year 5th year
A) FIXED ASSETS
1 Opening Bal. 1000000 900000 810000 729000 656100
2 Depreciation Rate 10% 10% 10% 10% 10%
3 Depreciation Amt 1000000 900000 810000 729000 656100
4 Value after Depn 900000 810000 729000 656100 590490

14
DETAILS OF INCREASE / DECREASE IN CLOSING STOCK

S. No Particulars 1st year 2nd year 3rd year 4th year 5th year
a) Opening Bal.
1) Raw Material 92335 98105 103875 109645
2) Finished goods 136665 145210 153750 162290
Total 229000 243315 257625 271935
b) Closing stock
1) Raw Materials 92335 98105 103875 109645 115415
2) Finished goods 136665 145210 153750 162290 170835
Total 229000 243315 257625 271935 286250
Increase / Decrease 229000 14315 14310 14310 14315

15
 PROJECTED PROFIT ABILITY STATEMENT

Year of Projection
Particulars 1st
year 2ndyear 3rd year 4th year 5th year
% Utilization 80% 85% 90% 95% 100%
Estimated production 8200000 8200000 8200000 8200000 8200000
capacity @100
Sales 6560000 6970000 7380000 7790000 8200000
Add: Closing Stock 229000 243315 257625 271935 286250
Total 6789000 7213315 7637625 8061935 8486250
Cost of Sales
1)Raw Material 4432000 4709000 4986000 5263000 5540000
2) Wages 780000 822000 864000 906000 948000
3)Direct Expenses 376000 398500 421000 443500 466000
Total ‘B’ 5588000 5929500 6271000 6612500 6954000
Gross Profit 1201000 1283815 1366625 1449435 1532250
Administrative cost
Indirect Expenses 142000 157500 173000 188500 204000
Salary 78000 85800 93600 101400 109200
Financial Cost
2)Int. on loan 194250 152250 110250 68250 26250
3) Depreciation 100000 90000 81000 72900 65610
Total ‘D’ 514250 485550 457850 431050 405060
Net Profit before tax 686750 798265 908775 1018385 1127190
Provision for Tax 161025 194480 227635 260515 293160
Net Profit 525725 603785 681140 757870 834030
Depreciation 100000 90000 81000 72900 65610
Net Profit 525725 603785 681140 757870 834030
Depreciation 100000 90000 81000 72900 65610
Net Cash accrual 625725 693785 762140 830770 899640
Repayment obligation 300000 300000 300000 300000 300000
D.S.C.R 2.09 2.31 2.54 2.77 3.00
Average D.S.C.R.
G/P Ratio 18.31 18.42 18.52 18.61 18.69
N/P Ration 8.01 8.66 9.23 9.73 10.17

16
 PROJECT BALANCE SHEET

S.No Year of Projection

Particulars 1st year 2nd year 3rd year 4th year 5th year
A) Liabilities
Prop’s Capital
Opening balance 125000 425725 792510 1224650 2596520
Add: Net Profit 525725 603785 681140 757870 834030
Add: margin money from Nil Nil Nil 875000 Nil
K.Y.I.B.
Less: withdrawal 225000 237000 249000 261000 273000
Closing Balance 425725 792510 1224650 2596520 3157550
Bank Loan 2500725 1775000 1475000 300000 Nil
Total ‘A’ 2500725 2567510 2699650 2896520 3157550
B) Assets
Fixed Assets 900000 810000 729000 656100 590490
Investment
Current Assets 1500000 1581265 1661965 1742665 1823365
Cash and bank bat 100725 176245 308685 497755 743695
Total ‘B’ 2500725 2567510 2699650 2896520 3157550

17
 CASH FLOW STATEMENT

S. No Year of Projection
Particulars 1st year 2nd year 3rd year 4th year 5th year
A) Sources of fund
1)Own contribution 125000 Nil Nil Nil Nil
2)Bank finance 2375000 Nil Nil Nil Nil
3) Net Profit 525725 603785 681140 757870 834030
4) Depreciation 100000 90000 81000 72900 65610
5)Margin money Nil Nil Nil 875000 Nil
Total sources ‘A’ 3125725 693785 762140 1705770 899640
B) Dedposition of Fund
1)Working Capital 1500000 Nil Nil Nil Nil
2)Capital expenditure 1000000 Nil Nil Nil Nil
3)Loan repayment 300000 300000 300000 1175000 300000
4)Drawing promoter 225000 237000 249000 261000 273000
Total deposition ‘B’ 3025000 537000 549000 1436000 573000
C) Opening balance Nil 100725 257510 470650 740420
D) Net surplus 100725 156785 213140 269770 326640
E) Closing balance 100725 257510 470650 740420 1067060

18
 STATEMENT FOR LOAN PAYMENT

YEAR QUARTER PRINCIPAL REPAYMENT TOTAL QUARTER TOTAL BANNK

AMOUNT REPAY INTEREST INTEREST LOAN
1ST I. 1500000 75000 52500 2300000
II. 1425000 75000 49875 2225000
III. 1350000 75000 47250 2150000
IV 1275000 75000 300000 44625 194250 2075000
2nd V. 1200000 75000 42000 2000000
VI. 1125000 75000 39375 1925000
VII. 1050000 75000 36750 1850000
VIII. 975000 75000 300000 34125 152250 1775000
3RD IX. 900000 75000 31500 1700000
X 825000 75000 28875 1625000
XI. 750000 75000 26250 1550000
XII. 675000 75000 300000 23625 110250 1475000
4TH XIII. 600000 75000 21000 1400000
XIV 525000 75000 18375 1325000
XV 450000 75000 15750 1250000
XVI 375000 75000 1175000 13125 68250 300000
5TH XVII 300000 75000 10500 225000
XVIII 225000 75000 7875 150000
XIX 150000 75000 5250 75000
XX 75000 75000 300000 2625 26250 NIL

NOTE :-

i. Total project cost is Rs. 2500000 against it own contribution is Rs. 125000 total
margin money will be Rs. 875000 from K.Y.I.B. and it will be kept in T.D.R for 3
yrs, hence bank would be financing the remaining loan against total project cost
i.e. Rs.1500000.
ii. As per revised margin money scheme bank will not any interest on loan
disbursed against margin i.e. Rs.875000 and give any interest only on amt.
excluding margin money.
iii. The amt. of margin money T.D.R. is adjusted to repayment of return of term laon
after 3yrs i.e. 1st quarter of 4th year.
iv. The bank loan amount Rs. 1500000 is divided into 20 equal installments and
margin money will be transferred to loan a/c starting from third year.
v. Interest is charged 14% p.a.

19
 STATEMENT SHOWNING DEBTS SERVICE COVERAGE RATION

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Net profit after tax 525725 603758 681140 757870 834030
Depreciation 100000 90000 51000 72900 65610
Amount available (a) 625725 693785 762140 830770 899640
Bank loan installment 300000 300000 300000 300000 300000
Int. on bank loan 194250 152250 110250 68250 26250
Total repayment 494250 452250 410250 368250 326250
D.S.C.R.= a/b 1.27 1.53 1.86 2.26 2.76

Average Debt Service Coverage Ration = 1.93

NOTE :- Out of stock bank loan of Rs. 2375000/-, we are eligible for margin money of
Rs. 875000/- on which there is no interest and repayment obligations. Amount of
repayment Rs. 1500000/- shown in D.S.C.R. chart is related to bank loan only.

20
 STATEMENT SHOWING BREAK EVEN POINT:

SR. NO. PARTICULARS TOTAL COST FIXED COST VARIABLE COST

1. Raw Material 4432000 4432000
2. Wages and salary 780000 780000
3. Elect charge & Water 48000 48000
charges
4. Packing material 328000 328000
5. Insurance 40000 40000
6. Telephone & postage 12000 12000
7. Misc. expenses 60000 60000
8. Repair and Maintenance 5000 5000
9. Sundry Expenses 25000 25000
10. Int. on Loan 194250 194250
11. Depreciation 100000 100000
TOTAL COST 5924250 436250 5588000
PROFIT BEFORE TAX 686750
TOTAL SALES 6560000

Break Even Point = Fixed *100/Sales-variable cost

= 436250*100/6560000-5588000

= 44.88%

Conclusion :

Considering the market survey, the demand for product, a lesser amount of competition
and experience of proprietor the subsistence of unit is technically viable. Also almost
financial indicators are will above normally accepted norms. This shows healthy future of
the unit. It requires financial attention for financing.

Note: The above project report is prepared taking into consideration the information
furnished by the promoter.

Date:

Place:

(Mrs. Pratibha Manoj Save)

Proprietor

21