PROJECT REPORT FOR MANUFACTURING & TRADING OF

EMBROIDERY SAREE

1 NAME OF THE ENTERPISES : SHRI ABDUL RASHID

2 CONSTITUTION : PROPRIETORSHIP

3 PROPRIETOR NAME : SHRI ABDUL RASHID

4 UNIT ADDRESS Vill.Post-Shakur Ka Bhatta Dulhipur,

Niyamatabad,Dist.Chandauli

5 NAME OF THE PROJECT/ : SHRI ABDUL RASHID

BUSINESS ACTIVITY PROPOSED Manufacturing & trading of Embroidery
Saree

6 COST OF PROJECT : 10 Lacs

7 MEANS OF FINANCE : Own Fund

Term Loan
Cash Credit

8 CURRENT RATIO 1.37

9 PAY BACK PERIOD :

Cash Credit On Demand
Term Loan 05 YEAR/60 MONTH

10 BREAK EVEN POINT 62.06%

11 NO. OF EMPOLOYEES 8

12 NET PROFIT RATIO 12.43%

13 DEBT EQUITY RATIO 1.13

14 AVERAGE DEBT SERVICE COVERAGE 4.68

RATIO

15 ESTIMATED ANNUAL RECEIPT TURNOVER (AT 100%) 5358000

 SHRI ABDUL RASHID
Address at :Vill.Post-Shakur Ka Bhatta Dulhipur,Niyamatabad
Dist.Chandauli
PROJECT COST AND MEANS OF FINANCE

S. No. PARTICULARS Rs.

I PROPOSED COST OF PROJECT

Plant & Machinery 535,000.00
Furniture & Fixture 65,000.00
Working Capital 400,000.00

1,000,000.00

II MEANS OF FINANCE

A) Promoter's Contribution 50,000.00

B) Bank Finance
i) Term Loan 570,000.00
ii) Working Capital 380,000.00

III TOTAL 1,000,000.00

 SHRI ABDUL RASHID
Address at :Shakur Ka Bhatta Dulhipur,Niyamatabad,Dist.Chandauli
Balance Sheet (Projected)

Estimated Projected Projected Projected Projected

Particulars
1 2 3 4 5
Liabilities
Capital 50,000.00 439,502.96 740,017.08 1,040,924.61 1,294,365.15
Add: Profit 399,502.96 525,514.12 605,907.52 678,440.55 773,191.18
449,502.96 965,017.08 1,345,924.61 1,719,365.15 2,067,556.33
Less: Drawings 10,000.00 225,000.00 305,000.00 425,000.00 480,000.00
439,502.96 740,017.08 1,040,924.61 1,294,365.15 1,587,556.33
Long Tern Liabilty
Term Loan 391,388.15 273,656.56 142,950.54 - -
Current Liabilty & Provision
Margin Subsidy Reserve A/c 350,000.00 350,000.00 350,000.00 350,000.00 350,000.00
Working Capital Loan 380,000.00 380,000.00 380,000.00 380,000.00 380,000.00
Term Loan Instal. Pyable within 12 month 106,045.06 117,731.59 130,706.02 142,950.55 -
Sundry Creditor for material & Expenses 12,500.00 156,840.00 412,000.00 445,000.00 352,000.00
Total Liabilites 1,679,436.17 2,018,245.23 2,456,581.17 2,612,315.70 2,669,556.33

Assets

Gross Fixed Asset 600,000.00 513,250.00 439,187.50 375,941.88 321,919.84

Less: Depreciation 86,750.00 74,062.50 63,245.63 54,022.03 46,155.65

Net Fixed Asset 513,250.00 439,187.50 375,941.88 321,919.84 275,764.19

Current Assets
Closing Stock 252,000.00 385,000.00 375,000.00 395,000.00 365,000.00
Receivables 308,000.00 554,000.00 761,000.00 785,000.00 805,000.00
Loans & Advances 77,600.00 70,540.00 227,700.00 272,600.00 278,000.00
Margin Subsidy Reserve A/c 350,000.00 350,000.00 350,000.00 350,000.00 350,000.00
Cash in bank/hand 178,586.17 219,517.73 366,939.29 487,795.85 595,792.14
Total Assets 1,679,436.17 2,018,245.23 2,456,581.17 2,612,315.69 2,669,556.33

Note: The above financial statement is only estimate of future business transaction, prepared on the basis of information provided by the proprietor.
We do not vouch the accuracy of the same.
Prepared by-
For Jamuna Shukla & Associates
Chartered Accountants

Shruti Agrawal
Partner
Date : 15.10.2020
Place: Varanasi
 `

SHRI ABDUL RASHID

Address at :Vill.Post-Shakur Ka Bhatta Dulhipur,Niyamatabad,Dist.Chandauli

Profit & Loss Statement (Projected)

Year
Particulars 1 2 3 4 5

Sale 3,215,000.00 3,482,000.00 3,749,000.00 4,016,000.00 4,284,000.00

Closing Stock of FG 252,000.00 385,000.00 375,000.00 395,000.00 365,000.00
.
Total 3,467,000.00 3,867,000.00 4,124,000.00 4,411,000.00 4,649,000.00

Opening Stock of FG 252,000.00 385,000.00 375,000.00 395,000.00

Cost of Raw material Consumed 1,915,500.00 1,874,000.00 1,910,000.00 2,046,000.00 2,090,000.00
Consumables 205,000.00 215,000.00 236,500.00 260,150.00 266,165.00
Wages 384,000.00 422,400.00 389,000.00 428,000.00 472,000.00
Power,Fuel & Electricity 60,000.00 66,000.00 72,600.00 80,600.00 88,660.00
Freight & Cartage 18,000.00 19,800.00 21,780.00 24,950.00 27,450.00
Total 2,582,500.00 2,849,200.00 3,014,880.00 3,214,700.00 3,339,275.00

Gross Profit 884,500.00 1,017,800.00 1,109,120.00 1,196,300.00 1,309,725.00

Rent 144,000.00 158,400.00 174,560.00 192,500.00 212,000.00

Depreciation 86,750.00 74,062.50 63,245.63 54,022.03 46,155.65
Selling & Distribution Exps 54,000.00 59,400.00 65,340.00 71,870.00 79,600.00
Administrative Expenses 48,000.00 52,800.00 58,080.00 63,800.00 70,180.00
Advertisment Expenses 30,000.00 33,000.00 36,300.00 39,930.00 43,940.00
Interest on CC 39,900.00 39,900.00 39,900.00 39,900.00 39,900.00
Interest on Term Loan 57,347.04 47,223.38 35,536.85 22,562.42 8,158.17
Miscalleneous Expenses 25,000.00 27,500.00 30,250.00 33,275.00 36,600.00

Total 484,997.04 492,285.88 503,212.48 517,859.45 536,533.82

Net Profit 399,502.96 525,514.12 605,907.52 678,440.55 773,191.18

Note: The above financial statement is only estimate of future business transaction, prepared on the
basis of information provided by the proprietor. We do not vouch the accuracy of the same.

Prepared by-
For Jamuna Shukla & Associates
Chartered Accountants

Shruti Agrawal
Partner

Date : 15.10.2020
Place: Varanasi
 TERM LOAN REPAYMENT SCHEDULE
Loan Amount 570,000.00
Repayment Period 60.00 Months
Rate of Interest 10.50% Yearly
Moratorium Period 3 months
Amount of Installment 12,772.37

REPAYMENT SCHEDULE & INTEREST CALCULATION OF LOAN

Month Opening Bal. Addition Installment Principal Interest Closing Bal.
1 - 570,000.00 4,987.50 - 4,987.50 570,000.00
2 570,000.00 - 4,987.50 4,987.50 570,000.00
3 570,000.00 4,987.50 4,987.50 570,000.00
4 570,000.00 12,772.37 7,784.87 4,987.50 562,215.13
5 562,215.13 12,772.37 7,852.99 4,919.38 554,362.14
6 554,362.14 12,772.37 7,921.70 4,850.67 546,440.44
7 546,440.44 12,772.37 7,991.02 4,781.35 538,449.42
8 538,449.42 12,772.37 8,060.94 4,711.43 530,388.49
9 530,388.49 12,772.37 8,131.47 4,640.90 522,257.02
10 522,257.02 12,772.37 8,202.62 4,569.75 514,054.40
11 514,054.40 12,772.37 8,274.39 4,497.98 505,780.00
12 505,780.00 12,772.37 8,346.79 4,425.58 497,433.21
13 497,433.21 12,772.37 8,419.83 4,352.54 489,013.38
14 489,013.38 12,772.37 8,493.50 4,278.87 480,519.87
15 480,519.87 12,772.37 8,567.82 4,204.55 471,952.05
16 471,952.05 12,772.37 8,642.79 4,129.58 463,309.26
17 463,309.26 12,772.37 8,718.41 4,053.96 454,590.85
18 454,590.85 12,772.37 8,794.70 3,977.67 445,796.15
19 445,796.15 12,772.37 8,871.65 3,900.72 436,924.50
20 436,924.50 12,772.37 8,949.28 3,823.09 427,975.22
21 427,975.22 12,772.37 9,027.59 3,744.78 418,947.63
22 418,947.63 12,772.37 9,106.58 3,665.79 409,841.05
23 409,841.05 12,772.37 9,186.26 3,586.11 400,654.79
24 400,654.79 12,772.37 9,266.64 3,505.73 391,388.15
25 391,388.15 12,772.37 9,347.72 3,424.65 382,040.42
26 382,040.42 12,772.37 9,429.52 3,342.85 372,610.91
27 372,610.91 12,772.37 9,512.02 3,260.35 363,098.88
28 363,098.88 12,772.37 9,595.25 3,177.12 353,503.63
29 353,503.63 12,772.37 9,679.21 3,093.16 343,824.42
30 343,824.42 12,772.37 9,763.91 3,008.46 334,060.51
31 334,060.51 12,772.37 9,849.34 2,923.03 324,211.17
32 324,211.17 12,772.37 9,935.52 2,836.85 314,275.65
33 314,275.65 12,772.37 10,022.46 2,749.91 304,253.19
34 304,253.19 12,772.37 10,110.15 2,662.22 294,143.03
35 294,143.03 12,772.37 10,198.62 2,573.75 283,944.42
36 283,944.42 12,772.37 10,287.86 2,484.51 273,656.56
37 273,656.56 12,772.37 10,377.88 2,394.49 263,278.68
38 263,278.68 12,772.37 10,468.68 2,303.69 252,810.00
39 252,810.00 12,772.37 10,560.28 2,212.09 242,249.72
40 242,249.72 12,772.37 10,652.68 2,119.69 231,597.04
41 231,597.04 12,772.37 10,745.90 2,026.47 220,851.14
42 220,851.14 12,772.37 10,839.92 1,932.45 210,011.22
43 210,011.22 12,772.37 10,934.77 1,837.60 199,076.45
44 199,076.45 12,772.37 11,030.45 1,741.92 188,045.99
45 188,045.99 12,772.37 11,126.97 1,645.40 176,919.03
46 176,919.03 12,772.37 11,224.33 1,548.04 165,694.70
47 165,694.70 12,772.37 11,322.54 1,449.83 154,372.16
48 154,372.16 12,772.37 11,421.61 1,350.76 142,950.54
49 142,950.54 12,772.37 11,521.55 1,250.82 131,428.99
50 131,428.99 12,772.37 11,622.37 1,150.00 119,806.62
51 119,806.62 12,772.37 11,724.06 1,048.31 108,082.56
52 108,082.56 12,772.37 11,826.65 945.72 96,255.91
53 96,255.91 12,772.37 11,930.13 842.24 84,325.78
54 84,325.78 12,772.37 12,034.52 737.85 72,291.26
55 72,291.26 12,772.37 12,139.82 632.55 60,151.44
56 60,151.44 12,772.37 12,246.04 526.33 47,905.40
57 47,905.40 12,772.37 12,353.20 419.17 35,552.20
58 35,552.20 12,772.37 12,461.29 311.08 23,090.91
59 23,090.91 12,772.37 12,570.32 202.05 10,520.59
60 10,520.59 12,772.37 10,520.59 92.06 -0.00
SCHEDULE OF LOAN REPAYMENT

Repayment of Loan is worked out as under:

Particular 1 2 3 4 5

Opening Balance 570,000.00 497,433.21 391,388.15 273,656.56 142,950.54

Repayment 72,566.79 106,045.06 117,731.59 130,706.02 142,950.55
Closing Balance 497,433.21 391,388.15 273,656.56 142,950.54 -0.00

WORKING CAPITAL LOAN

YEAR OPENING BALANCE CLOSING BALANCE INTEREST @ 10.50%

1 380,000.00 380,000.00 39,900.00

2 380,000.00 380,000.00 39,900.00
3 380,000.00 380,000.00 39,900.00
4 380,000.00 380,000.00 39,900.00
5 380,000.00 380,000.00 39,900.00
 STATEMENT SHOWING DEPRECIATION ON FIXED ASSET

PARTICULARS RATE 1 2 3 4 5
OF
DEP.

Plant & Machinery 15%

Opening Balance - 454,750.00 386,537.50 328,556.88 279,273.34
Addition 535,000.00 - - - -
Depreciation 80,250.00 68,212.50 57,980.63 49,283.53 41,891.00

Closing Balance 454,750.00 386,537.50 328,556.88 279,273.34 237,382.34

Furniture & Fixture 10%

Opening Balance - 58,500.00 52,650.00 47,385.00 42,646.50
Addition 65,000.00 - - - -
Depreciation 6,500.00 5,850.00 5,265.00 4,738.50 4,264.65

58,500.00 52,650.00 47,385.00 42,646.50 38,381.85

Closing Balance 513,250.00 439,187.50 375,941.88 321,919.84 275,764.19
BREAK EVENT POINT AND RATIO ANALYSIS

PARTICULARS 1 2 3 4 5
Fixed Cost 241,247.04 245,523.38 249,996.85 254,962.42 260,058.17
Variable Cost 2,826,250.00 3,095,962.50 3,268,095.63 3,477,597.03 3,615,750.65
Total Cost 3,067,497.04 3,341,485.88 3,518,092.48 3,732,559.45 3,875,808.82
Gross receipt 3,215,000.00 3,482,000.00 3,749,000.00 4,016,000.00 4,284,000.00
Contribution (GR-VC) 388,750.00 386,037.50 480,904.38 538,402.97 668,249.35
BEP in % 62.06% 63.60% 51.98% 47.36% 38.92%
Inventory 252,000.00 385,000.00 375,000.00 395,000.00 365,000.00
Inventory Holding Period(in days) 29.99 42.05 38.91 38.63 34.37
Debt Equity Ratio 1.13 0.53 0.26 0.11 -
Gross Profit Ratio(In %) 27.51% 29.23% 29.58% 29.79% 30.57%
Net Profit Ratio(In %) 12.43% 15.09% 16.16% 16.89% 18.05%
Current Ratio 1.37 1.57 1.63 1.74 2.21
 CALCULATION OF DEBT SERVICE COVERAGE RATIO

Particulars 1 2 3.00 4 5

Cash Accrual 486,252.96 599,576.62 669,153.15 732,462.58 819,346.83

Interest on Tern Loan 57,347.04 47,223.38 35,536.85 22,562.42 8,158.17

Total (A) 543,600.00 646,800.00 704,690.00 755,025.00 827,505.00

Repayment
Interest on Term Loan 57,347.04 47,223.38 35,536.85 22,562.42 8,158.17
Princpal Amount 72,566.79 106,045.06 117,731.59 130,706.02 142,950.55

Total (B) 129,913.83 153,268.44 153,268.44 153,268.44 151,108.72

DSCR (A/B) 4.18 4.22 4.60 4.93 5.48

Avg DSCR 4.68
Capacity Utilisation of Sales

Particulars/Year 1st 2nd 3rd 4th 5th

Capacity Utilisation 60% 65% 70% 75% 80%

Sales/Gross Receipt 3,215,000.00 3,482,000.00 3,749,000.00 4,016,000.00 4,284,000.00

WAGES
Particulars No. of Worker Wages Per Month Amount(Rs)
Wages 8 4000 384,000.00
 ASSESSMENT OF WORKING CAPITAL FUND
COMPUTATION OF MAXIMUM PERMISSIBLE BANK FINANCE FOR WORKING CAPITAL

PBF As Per NCR Method 1

(i) Accepted Sales 3,215,000.00

(ii) Less: 25% of (i) 803,750.00
(iii) 5% of (i) 160,750.00
(iv) NWC 317,641.11
(v) PBF (ii-iii) 643,000.00
or ( ii-iv) 486,108.89
Whichever is less 486,108.89