Index

1) Introduction
2) Cost Of Capital
3) Means Of Finance
4) Depreciation Schedule
5) Interest & Repayment Schedule
6) Projected Profitability Statement
7) Projected Balance Sheet
8) Capital Account
9) Cash Flow Statement
10) Ratio Analysis
 1) Introduction
NAME OF BUSINESS
Pranjali Gangawar
NATURE OF BUSINESS Manufacturing & Selling of Agarbatti
NAME OF PROPRIETOR Pranjali Gangawar
B-504, Sai Residency,Near By Grampachayat, Nagpur
RESIDENTIAL ADDRESS
B-504, Sai Residency,Near By Grampachayat, Nagpur
PROJECT ADDRESS

DATE OF BIRTH 31/08/1989

10th Pass
QUALIFICATION

EXPERIENCE IN THIS FIELD

CONTACT NO. 9763838022

 Pranjali Gangawar
Manufacturing & Selling of Agarbatti

2) Cost Of Projects
Particulars Amount Rs.

Machinery 2,48,390.00
Working Capital 60,000.00

Total Cost Of Projects 3,08,390.00

3) Means Of Finance
Particulars Amount Rs.
Own Contribution @ 5% 15,420.00

Bank Finance @ 95% 2,92,970.00

Total Rest. 3,08,390.00

Margin Money from KVIB 35% on

Cost Of Project 1,07,936.00

Margin Money Subsidy received will be kept in term

deposit as per norms of PMEGP in the name of Beneficiary
for three years in the financing branch.
 4) Depreciation Schedule
Machinery - Rate of Depreciation 15%
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year
Opening Balance - 2,11,132.00 1,79,462.00 44,607.00 37,916.00 32,228.00 27,394.00
Add: Purchase During The year 2,48,390.00 - - - - - -
Less: Subsidy Received - - 1,07,936.00
Less: Depreciation 37,258.00 31,670.00 26,919.00 6,691.00 5,688.00 4,834.00 4,110.00
Closing Balance 2,11,132.00 1,79,462.00 44,607.00 37,916.00 32,228.00 27,394.00 23,284.00
Total Depreciation
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year
Machinery 37,258.00 31,670.00 26,919.00 6,691.00 5,688.00 4,834.00 4,110.00
Total Rs. 37,258.00 31,670.00 26,919.00 6,691.00 5,688.00 4,834.00 4,110.00
 5) Interest & Repayment Schedule
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year
Opening Balance 2,92,970.00 3,23,648.00 2,96,419.00 1,58,404.00 1,13,873.00 64,680.00 10,336.00
Installment Amount 4,864.00 4,864.00 4,864.00 4,864.00 4,864.00 4,864.00 4,864.00
No of Installment 12.00 12.00 12.00 12.00 12.00 12.00 12.00
Installment During The
Year Rs. - 58,368.00 58,368.00 58,368.00 58,368.00 58,368.00 10,475.00
Closing Balance Before
Subsidy 3,23,648.00 2,96,419.00 2,66,340.00 1,13,873.00 64,680.00 10,336.00 -
KVIB Subsidy Credited
ending of the year - - 1,07,936.00 - - -
Closing Balance after
Subsidy 3,23,648.00 2,96,419.00 1,58,404.00 1,13,873.00 64,680.00 10,336.00 -
Interest @10% 30,678.00 31,139.00 28,289.00 13,837.00 9,175.00 4,024.00 139.00
Principal Repayment - 27,229.00 30,079.00 44,531.00 49,193.00 54,344.00 10,336.00
 6) Projected Profitability Statement

Particulars Estimated Projected Projected Projected Projected

Income
Sale 8,00,000.00 10,40,000.00 13,52,000.00 17,57,600.00 22,84,880.00
Add: Closing Stock 2,40,000.00 3,64,000.00 4,73,200.00 6,15,160.00 7,99,708.00
Less: Purchase 4,40,000.00 4,62,000.00 4,85,100.00 5,09,355.00 5,34,823.00
Less: Opening Stock - 2,40,000.00 3,64,000.00 4,73,200.00 6,15,160.00

Gross Profit Rest. 6,00,000.00 7,02,000.00 9,76,100.00 13,90,205.00 19,34,605.00

Expenditure
Direct Cost 2,00,000.00 2,34,000.00 3,04,200.00 3,95,460.00 5,14,098.00
Salary & Wages 72,000.00 79,200.00 1,74,240.00 3,83,328.00 5,27,100.00
Depreciation 37,258.00 31,670.00 26,919.00 6,691.00 5,688.00
Freight 25,000.00 30,000.00 36,000.00 43,200.00 51,840.00
Power & Fuel 25,000.00 30,000.00 36,000.00 43,200.00 51,840.00
Rent 60,000.00 60,000.00 60,000.00 72,000.00 72,000.00

Total Expenditure 4,19,258.00 4,64,870.00 6,37,359.00 9,43,879.00 12,22,566.00

Profit Before Interest & Tax 1,80,742.00 2,37,130.00 3,38,741.00 4,46,326.00 7,12,039.00

Financial Charges
Interest On Loan 30,678.00 31,139.00 28,289.00 13,837.00 9,175.00

Profit Before Tax 1,50,064.00 2,05,991.00 3,10,452.00 4,32,489.00 7,02,864.00

Income Tax - - - - 55,196.00

Profit After Tax 1,50,064.00 2,05,991.00 3,10,452.00 4,32,489.00 6,47,668.00

 7) Projected Balance Sheet

Particular Year 1 Year 2 Year 3 Year 4 Year 5

Liabilities
Capital 65,484.00 1,21,475.00 2,31,927.00 3,89,416.00 5,87,084.00
Term Loan 3,23,648.00 2,96,419.00 1,58,404.00 1,13,873.00 64,680.00
Current Liabilities &
Provisions 1,50,000.00 2,50,000.00 3,00,000.00 3,50,000.00 4,25,000.00

Total Rs 5,39,132.00 6,67,894.00 6,90,331.00 8,53,289.00 10,76,764.00

Assets

Fixed Assets 2,48,390.00 2,11,132.00 1,79,462.00 44,607.00 37,916.00

Less: Subsidy Received - - 1,07,936.00 - -
Less: Depreciation 37,258.00 31,670.00 26,919.00 6,691.00 5,688.00
Net Fixed Assets 2,11,132.00 1,79,462.00 44,607.00 37,916.00 32,228.00

Current Assets
Closing Stock 2,40,000.00 3,64,000.00 4,73,200.00 6,15,160.00 7,99,708.00
Receivables 50,000.00 75,000.00 1,25,000.00 1,50,000.00 2,00,000.00
Cash & Cash equivalent 38,000.00 49,432.00 47,524.00 50,213.00 44,828.00
Total Current Assets 3,28,000.00 4,88,432.00 6,45,724.00 8,15,373.00 10,44,536.00

Total Rs. 5,39,132.00 6,67,894.00 6,90,331.00 8,53,289.00 10,76,764.00

- - - - -

8) Capital Account
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening Capital Balance - 65,484.00 1,21,475.00 2,31,927.00 3,89,416.00
Add: Capital Introduced 15,420.00 - - - -
Add: Profit During the Year 1,50,064.00 2,05,991.00 3,10,452.00 4,32,489.00 6,47,668.00
Less: Withdrawals 1,00,000.00 1,50,000.00 2,00,000.00 2,75,000.00 4,50,000.00

Closing Capital Balance 65,484.00 1,21,475.00 2,31,927.00 3,89,416.00 5,87,084.00

 9. Cash Flow Statement

Particular Year 1 Year 2 Year 3 Year 4 Year 5

Opening Cash & Cash Equivalent - 38,000.00 49,432.00 47,524.00 50,213.00

Sources of Fund
Profit After Tax 1,50,064.00 2,05,991.00 3,10,452.00 4,32,489.00 6,47,668.00
Depreciation 37,258.00 31,670.00 26,919.00 6,691.00 5,688.00
Term Loan 2,92,970.00
Interest Capitalized 30,678.00
Capital Introduced 15,420.00
Changes Working Capital
Increase In Current liabilities 1,50,000.00 1,00,000.00 50,000.00 50,000.00 75,000.00

Sub Total (A) 6,76,390.00 3,75,661.00 4,36,803.00 5,36,704.00 7,78,569.00

Application of Fund
Fixed Assets 2,48,390.00
Repayment of Term Loan - 27,229.00 30,079.00 44,531.00 49,193.00
Capital Withdrawals 1,00,000.00 1,50,000.00 2,00,000.00 2,75,000.00 4,50,000.00
Changes Working Capital
Increase In Current Assets 2,90,000.00 1,49,000.00 1,59,200.00 1,66,960.00 2,34,548.00

Sub Total (B) 6,38,390.00 3,26,229.00 3,89,279.00 4,86,491.00 7,33,741.00

Closing Cash & Cash Equivalent 38,000.00 49,432.00 47,524.00 50,213.00 44,828.00
 10) RATIO ANALYSIS
Particulars Formulae 1st Year 2nd Year 3rd Year 4th Year 5th Year
CASH FLOW
EBIT
INTEREST COVERAGE RATIO 5.89 7.62 11.97 32.26 77.61
INTEREST EXPENSE
DEBT SERVICE COVERAGE RATIO
NET INCOME (PRE-TAX) 1,50,064.00 2,05,991.00 3,10,452.00 4,32,489.00 7,02,864.00
ADD INTEREST EXPENSE 30,678.00 31,139.00 28,289.00 13,837.00 9,175.00
ADD DEPRECIATION 37,258.00 31,670.00 26,919.00 6,691.00 5,688.00
EBITDA 2,18,000.00 2,68,800.00 3,65,660.00 4,53,017.00 7,17,727.00
INTEREST EXPENSES 30,678.00 31,139.00 28,289.00 13,837.00 9,175.00
PRINCIPAL PAYMENTS - 27,229.00 30,079.00 44,531.00 49,193.00
TOTAL REPAYMENT 30,678.00 58,368.00 58,368.00 58,368.00 58,368.00
DEBT SERVICE COVERAGE RATIO 7.11 4.61 6.26 7.76 12.30
Average DSCR 3.46
LIQUIDITY RATIOS
CURRENT RATIO (CURRENT ASSETS)/(CURRENT LIABILITIES) 2.19 1.95 2.15 2.33 2.46
WORKING CAPITAL (CURRENT ASSETS)-(CURRENT LIABILITIES) 1,78,000.00 2,38,432.00 3,45,724.00 4,65,373.00 6,19,536.00
Net Profit
Net Profit Ratio 18.76 19.81 22.96 24.61 28.35
Sale
This Project Report has been prepared based on the data furnished by the entrepreneur whose details given in the application.
Place : Nagpur
Date :
Prepared By : Name : Pranjali Gangawar
R.B. Associates
Tax & Financial Consultant