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Readymade Chappathi Project Report
Readymade Chappathi Project Report
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GN food Products is a Chappatti making Industry with the help of highly sophisicated digital
macheneries. Today we are suffering from lot of health problems and most of them are because
of non-hygenic and food adulteration practices. So Keeping this in mind, we have started this
business for serving the public with hygenic food stuff for a better & healthy new generation. We
promise that we have no compromise on quality.
BUSINESS PROFILE
The proposed project is unique in this type of industry, because we have selected the
macheneries with high potential and most hygenic in nature.The proprietor has decided to meet
the entire demands with in a short period, without compromising on qualities.This facility will
gain momentum and has significant commercial prospects in the years to come. Since similar
facilities with unique ideas are missing in Adoor area, this project is expected to provide more
social convenience for the residents, and has potential of becoming a commercial success. This
is the compelling reason behind planning this project.
ENTREPRENEUR PROFILE
This project is promoted by Ms Geetha Nair, who had few years of work exposure to the small
scale industries. She has already acquired sufficient skills to run and manage this type of
Industries and since she is a Nurse, she knows the value of Public health and how to be hygenic
in all the aspects. Besides being a profitable Industry, It is expected to provide employment
opportunity to a few competent people struggling for employment. Now that the staff have been
hired and the infrastructure is being set up, the only limiting factor is money; there is a shortage
of cash to an extent of almost INR 3.7 lakhs, out of the total project cost of approximately INR
4.5 lakhs (including working capital).
MARKET PROFILE
Adoor is a Big Town in Pathanamthitta district with a multi-cultural population of around
Seventy thousand residents. Most of the people are educated and busy with work or agriculture.
Since almost all are depending on outside food( at least once in a week) and this need has
created a demand, in the locality, which is being exploited commercially be the promoter of this
venture.
4,00,000
Net Cash / Fund Flow
3,00,000
2,00,000
1,00,000 Location
-
Y1 Y2 Y3 Y4 Y5
Net Cashflows Net change in Working Capital
- - -
Total Cost of Plant & Machinery 4.00 4,10,640.00
- - -
Intangible
- - -
- - -
Asse
- - -
- - -
- - -
- - -
Total Security Deposits/Guarantee Margins -
Total Capital Expenditure 4,69,640.00
- - -
Total Working Capital 1,25,010.00
Total Project Cost 5,94,650.00
Owned Capial 20% 1,20,000 Terms Term Loan WC Loan Auto Loan
Borrowed Capital 80% 4,75,000 Scheme Mudra
Term Loan 100% 4,75,000 Tenure (M) 60
WC Loan 0% - Interest (%) 11%
Auto Loan 0% - Gestation(M) 3
Total 100% 4,75,000 5,95,000 Subsidy (%) Nil
Year Op. Bal Disbursal Total Loan Interest Due Principal due Repayment Cl. Balance
Year 1 - 4,75,000 4,75,000 51,388 44,140 95,528 4,30,860
Opening Balance - - - - -
Depreciation - - - - -
Closing Balance - - - - -
- - -
Total Sales Revenue (at Full Capacity) 3.00 7,00,000 21,00,000.00
- - - -
Total Salaries Per Year 2 1,92,000.00
- - - -
Total Purchase Cost (at full capacity) 1,034.00 210.00 13,01,955.00
- - - -
- - - -
Total Wages Per Year - -
D. Fixed Cost
Depreciation 1,24,729 91,455 67,103 49,266 36,193
Bank Interest 51,388 43,237 33,500 22,640 10,519
Admin Expenses 2,25,000 2,29,500 2,34,090 2,38,772 2,43,547
D. Total Fixed Costs 4,01,117 3,64,192 3,34,693 3,10,678 2,90,259
E. PV Ratio ( C / A x 100) 36.15 35.51 34.87 34.23 33.58
F. Break Even Value (D/E x 100) 11,09,744 10,25,525 9,59,713 9,07,633 8,64,424
G. Cash Break Even (Without Depn) 7,647 7,680 7,673 7,637 7,566
H. Break Even without Interest 10,58,356 9,82,288 9,26,213 8,84,993 8,53,905
The project has high potentials of achieving targeted revenue, due to the genuine intention of selling quality products at
reasonable price and the favorable location aspect.
Total cost of the project is INR 5.95 lakhs, out of which the proprietor is contributing INR 1.2 lakhs, and the remaining INR
4.75 lakhs is being requested from the bank as a loan under the Mudra loan of Indian Government at competitive interest rate,
repayable within 5 years. Besides 35% is expected from Government as subsidy
The Proprietor Ms.Geetha Nair has acquired sufficient experience in similar businesses during the past years.
The project, based on the financial projections, is expected to maintain an average net profit ratio of 9.32%, average return on
investment of 25.26% and average DSCR of 2.15, which are positive signs of the project's repayment capacity and profitability.
The project is expected to Payback the initial investments within a period of 3.64 years with an internal rate of return of
10.35%..
The loan is proposed to be paid off with interest in 60 equal monthly instalments, with a gestation of 3 months. There is
sufficient cashflow for meeting the obligation of the business regarding payment of interest, instalment of loan and all other
operational expenses.
On the basis of the above facts and observations, the proposed project (GN Food Products) is considered financially
feasible and the loan amount is sufficiently secured with assurance of promt repayment.
Place : Adoor