Index

1) Introduction
2) Cost Of Capital
3) Means Of Finanace
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
Pooja Agarbati
NATURE OF BUSINESS Agarbati Manufacturing & Selling
NAME OF PROPRIETOR PooJa Katre
RESIDENTIAL ADDRESS
PROJECT ADDRESS

DATE OF BIRTH

QUALIFICATION

EXPERIENCE IN THIS FIELD

CONTACT NO.
 Pooja Agarbati
Agarbati Manufacturing & Selling

2) Cost Of Projects
Particulars Amount Rs.

Machinery 3,54,000.00
Furniture 88,500.00
Other Equipments 94,400.00
Working Capital 1,50,000.00

Total Cost Of Projects 6,86,900.00

3) Means Of Finance
Particulars Amount Rs.
Own Contribution @ 5% 34,345.00

BanK Finance @ 95% 6,52,555.00

Total Rs. 6,86,900.00

Margin Money from KVIB 35% on

Cost Of Project 2,40,415.00

Margin Money Subsidy received will be kept in term

deposit as per norms of CMEGP 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 - 3,00,900.00 2,55,765.00 - - - -
Add: Purchase During The year 3,54,000.00 - - - - - -
Less: Subsidy Received - - 2,17,400.00
Less: Depreciation 53,100.00 45,135.00 38,365.00 - - - -
Closing Balance 3,00,900.00 2,55,765.00 - - - - -

Furniture - Rate of Depreciation 10%

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year
Opening Balance - 79,650.00 71,685.00 41,501.00 37,351.00 33,616.00 30,254.00
Add: Purchase During The year 88,500.00 - - - - - -
Less: Subsidy Received - - 23,015.00
Less: Depreciation 8,850.00 7,965.00 7,169.00 4,150.00 3,735.00 3,362.00 3,025.00
Closing Balance 79,650.00 71,685.00 41,501.00 37,351.00 33,616.00 30,254.00 27,229.00

Total Depreciation
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year
Machinery 53,100.00 45,135.00 38,365.00 - - - -
Furniture 8,850.00 7,965.00 7,169.00 4,150.00 3,735.00 3,362.00 3,025.00
Total Rs. 61,950.00 53,100.00 45,534.00 4,150.00 3,735.00 3,362.00 3,025.00
 5) Interest & Repayment Schedule
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year

Opening Balance 6,52,555.00 5,84,763.00 5,09,872.00 1,86,724.00 70,153.00

Installment Amount 10,833.00 10,833.00 10,833.00 10,833.00 10,833.00

No of Installment 12.00 12.00 12.00 12.00 12.00

Installment During The

Year Rs. 1,29,996.00 1,29,996.00 1,29,996.00 1,29,996.00 72,426.00

Closing Balance Before

Subsidy 5,84,763.00 5,09,872.00 4,27,139.00 70,153.00 -

KVIB Subsidy Credited

Statring of the year - - 2,40,415.00 -

Closing Balance after

Subsidy 5,84,763.00 5,09,872.00 1,86,724.00 70,153.00 -

Interest @10% 62,204.00 55,105.00 47,263.00 13,425.00 2,273.00

Principal Repayment 67,792.00 74,891.00 82,733.00 1,16,571.00 70,153.00

 6) Projected Profitability Statement

Particulars Estimated Projected Projected Projected Projected

Income
Sale 11,00,000.00 14,30,000.00 18,59,000.00 24,16,700.00 31,41,710.00
Add: Closing Stock 3,30,000.00 5,00,500.00 6,50,650.00 8,45,845.00 10,99,599.00
Less: Purchase 6,00,000.00 6,30,000.00 6,61,500.00 6,94,575.00 7,29,304.00
Less: Opening Stock - 3,30,000.00 5,00,500.00 6,50,650.00 8,45,845.00

Gross Profit Rs. 8,30,000.00 9,70,500.00 13,47,650.00 19,17,320.00 26,66,160.00

Expenditure
Direct Cost 2,75,000.00 3,57,500.00 4,64,750.00 6,04,175.00 7,85,428.00
Salary & Wages 72,000.00 79,200.00 1,74,240.00 1,91,664.00 2,10,816.00
Depreciation 61,950.00 53,100.00 45,534.00 4,150.00 3,735.00
Frieght 25,000.00 30,000.00 36,000.00 43,200.00 51,840.00
Power & Fuel 50,000.00 60,000.00 72,000.00 86,400.00 1,03,680.00
Rent 1,20,000.00 1,20,000.00 1,20,000.00 1,44,000.00 1,44,000.00

Total Expenditure 6,03,950.00 6,99,800.00 9,12,524.00 10,73,589.00 12,99,499.00

Profit Before Interest & Tax 2,26,050.00 2,70,700.00 4,35,126.00 8,43,731.00 13,66,661.00

Financial Charges
Interest On Loan 62,204.00 55,105.00 47,263.00 13,425.00 2,273.00

Profit Before Tax 1,63,846.00 2,15,595.00 3,87,863.00 8,30,306.00 13,64,388.00

Income Tax - - - 72,846.00 2,19,160.00

Profit After Tax 1,63,846.00 2,15,595.00 3,87,863.00 7,57,460.00 11,45,228.00

 7) Projected Balance Sheet

Particular Year 1 Year 2 Year 3 Year 4 Year 5

Liabilities
Capital 1,48,191.00 2,63,786.00 5,01,649.00 8,59,109.00 12,34,337.00
Term Loan 5,84,763.00 5,09,872.00 1,86,724.00 70,153.00 -
Sundry Creditors & Other
Payables 1,25,000.00 1,50,000.00 2,00,000.00 2,50,000.00 3,00,000.00

Total Rs 8,57,954.00 9,23,658.00 8,88,373.00 11,79,262.00 15,34,337.00

Assets

Fixed Assets 4,42,500.00 3,80,550.00 3,27,450.00 41,501.00 37,351.00

Less: Subsidy Received - - 2,40,415.00 - -
Less: Depreciation 61,950.00 53,100.00 45,534.00 4,150.00 3,735.00
Net Fixed Aseets 3,80,550.00 3,27,450.00 41,501.00 37,351.00 33,616.00

Current Assets
Closing Stock 3,30,000.00 5,00,500.00 6,50,650.00 8,45,845.00 10,99,599.00
Receievables 1,30,000.00 70,000.00 1,50,000.00 2,70,000.00 3,50,000.00
Cash & Cash equivalent 17,404.00 25,708.00 46,222.00 26,066.00 51,122.00
Total Current Assets 4,77,404.00 5,96,208.00 8,46,872.00 11,41,911.00 15,00,721.00

Total Rs. 8,57,954.00 9,23,658.00 8,88,373.00 11,79,262.00 15,34,337.00

8) Capital Account
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Opening Capital Balance - 1,48,191.00 2,63,786.00 5,01,649.00 8,59,109.00
Add: Capital Introduced 34,345.00 - - - -
Add: Profit During the Year 1,63,846.00 2,15,595.00 3,87,863.00 7,57,460.00 11,45,228.00
Less: Withdrawals 50,000.00 1,00,000.00 1,50,000.00 4,00,000.00 7,70,000.00

Closing Capital Balance 1,48,191.00 2,63,786.00 5,01,649.00 8,59,109.00 12,34,337.00

 9. Cash Flow Statement

Particular Year 1 Year 2 Year 3 Year 4 Year 5

Opening Cash & Cash Equivalent - 17,404.00 25,708.00 46,222.00 26,066.00

Sources of Fund
Profit After Tax 1,63,846.00 2,15,595.00 3,87,863.00 7,57,460.00 11,45,228.00
Depreciation 61,950.00 53,100.00 45,534.00 4,150.00 3,735.00
Term Loan 6,52,555.00
Capital Introduced 34,345.00
Changes Working Capital
Increase In Current liabilities 1,25,000.00 25,000.00 50,000.00 50,000.00 50,000.00

Sub Total (A) 10,37,696.00 3,11,099.00 5,09,105.00 8,57,832.00 12,25,029.00

Application of Fund
Fixed Assets 4,42,500.00
Repayment of Term Loan 67,792.00 74,891.00 82,733.00 1,16,571.00 70,153.00
Capital Withdrawals 50,000.00 1,00,000.00 1,50,000.00 4,00,000.00 7,70,000.00
Changes Working Capital
Increase In Current Assets 4,60,000.00 1,10,500.00 2,30,150.00 3,15,195.00 3,33,754.00

Sub Total (B) 10,20,292.00 2,85,391.00 4,62,883.00 8,31,766.00 11,73,907.00

Closing Cash & Cash Equivalent 17,404.00 25,708.00 46,222.00 26,066.00 51,122.00
 10) RATIO ANALYSIS

Particulars Formulae 1st Year 2nd Year 3rd Year 4th Year 5th Year
CASH FLOW

INTEREST COVERAGE RATIO EBIT

3.63 4.91 9.21 62.85 601.26
INTEREST EXPENSE

DEBT SERVICE COVERAGE RATIO

NET INCOME (PRE-TAX) 1,63,846.00 2,15,595.00 3,87,863.00 8,30,306.00 13,64,388.00
ADD INTEREST EXPENSE 62,204.00 55,105.00 47,263.00 13,425.00 2,273.00
ADD DEPRECIATION 61,950.00 53,100.00 45,534.00 4,150.00 3,735.00
EBITDA 2,88,000.00 3,23,800.00 4,80,660.00 8,47,881.00 13,70,396.00

INTEREST EXPENSES 62,204.00 55,105.00 47,263.00 13,425.00 2,273.00

PRINCIPAL PAYMENTS 67,792.00 74,891.00 82,733.00 1,16,571.00 70,153.00
TOTAL REPAYMENT 1,29,996.00 1,29,996.00 1,29,996.00 1,29,996.00 72,426.00

DEBT SERVICE COVERAGE RATIO 2.22 2.49 3.70 6.52 18.92

LIQUIDITY RATIOS

CURRENT RATIO (CURRENT ASSETS)/(CURRENT LIABILITIES) 3.82 3.97 4.23 4.57 5.00
WORKING CAPITAL (CURRENT ASSETS)-(CURRENT LIABILITIES) 3,52,404.00 4,46,208.00 6,46,872.00 8,91,911.00 12,00,721.00

Net Profit Ratio Net Proit

14.90 15.08 20.86 31.34 36.45
Sale

This Project Report has been prepared based on the data furnised by the entrepreneur whose details given in the application.

Place : Nagpur
Date :

Prepared By : Name : Pooja Agarbati

R.B. Associates
Tax & Financial Consultant