Project Report - RAJESHWAR

COST OF PROJECT
(Rs. in Lacs)
Sr. No. Sources of funds Rs.
1 Capital Contribution by Proprietor 2.50
2 Finance Required From bank:

a. Term Loan 0.00
b. Cash Credit 10.00
Total 12.50
Sr. No. Utilisation of funds Rs.
1 Working Capital 12.50
Total 12.50
PROJECTED BALANCE SHEET
Rs. in lacs
Sr. No. Liabilities Annex. Financial Year
Actual Projected Projected Projected Projected Projected Projected
2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28
I Capital Account
Proprietor's Capital A 18.57 21.90 25.24 28.50 32.62 36.59 41.60
II Long term borrowings

Term Loan From Bank B - - - - - - -
III Current Liabilities:

Cash Credit From Bank - 10.00 10.00 10.00 10.00 10.00
Trade payables C 4.34 4.34 5.94 7.33 8.60 10.21 12.01
Total Liabilities 22.92 26.24 41.18 45.83 51.21 56.80 63.61
I Fixed Assets
Tangible fixed assets D 3.23 2.81 2.45 2.15 1.88 3.35 2.90
II Deposit and Advance 1.20 1.20 6.20 6.20 6.20 6.20 6.20
III Current assets

a. Trade Receivables E 5.54 6.34 7.93 9.91 11.89 14.27 17.13
b. Closing Stock of Goods 12.28 14.85 23.82 26.20 28.82 31.70 34.87
c. Cash and bank balances 0.67 1.04 0.78 1.37 2.42 1.27 2.51
Total Assets 22.92 26.25 41.18 45.84 51.22 56.80 63.61

(0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)
PROJECTED PROFITABILITY STATEMENT
Rs. In lacs
Sr. No. Particulars Annex. Financial Year
2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28
I Revenue
a. Revenue From Operations 39.04 50.75 63.44 79.30 95.16 114.19 137.03
b. Closing Stock of Goods 12.28 14.85 23.82 26.20 28.82 31.70 34.87
Total Revenue 51.32 65.60 87.26 105.50 123.98 145.89 171.90
II Direct Expenses
a. Opening Stock of Goods 10.35 12.28 14.85 23.82 26.20 28.82 31.70
b. Goods Purchases 32.15 35.53 46.31 52.34 62.80 76.51 91.81
c. Power and fuel cost 0.00 0.71 2.32 2.62 3.14 3.83 4.59
d. Wages and salaries 1.32 2.54 3.17 3.96 4.76 5.71 6.85
e. Other Direct Expenses 0.00 1.07 4.63 5.23 6.28 7.65 9.18
Total Operating Expenses 43.82 52.12 71.28 87.97 103.18 122.51 144.13
III Indirect Expenses

a. Administration Expenses 0.44 0.87 0.96 1.06 1.16 1.28 1.41
b. Selling Expenses 0.17 0.50 0.55 0.61 0.67 0.73 0.81
c. Other Indirect Expenses 1.66 4.14 4.55 5.01 5.51 6.06 6.66
Total Indirect Expenses 2.26 5.51 6.06 6.67 7.34 8.07 8.88
IV EBITDA (Earning Before 5.23 7.96 9.92 10.86 13.46 15.31 18.89
Interest, Tax & Depreciation)
V Interest Expense
a. Interest on Term Loan B 0.00 - - - - - -
b. Interest on Cash Credit 0.00 - 1.10 1.10 1.10 1.10 1.10
Total Interest Expense 0.00 0.00 1.10 1.10 1.10 1.10 1.10
VI Depreciation D 0.49 0.42 0.36 0.31 0.27 0.53 0.46
VII Earning Before Tax (EBT) 4.74 7.55 8.46 9.45 12.09 13.68 17.33
VIII Income Tax F - 0.66 0.85 1.06 1.82 2.32 3.46
IX Earning After Tax (EAT) 4.74 6.89 7.61 8.39 10.27 11.36 13.87
A EBITDA % 13.41% 15.69% 15.63% 13.69% 14.14% 13.41% 13.78%

B EBT % 12.15% 14.87% 13.34% 11.92% 12.71% 11.98% 12.65%
C EAT % 12.15% 13.57% 12.00% 10.59% 10.79% 9.95% 10.13%
PROJECTED CASHFLOW STATEMENT
Rs. in lacs
Sr. No. Particulars 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28
I CASH INFLOW
a. Capital contribution 11.77
b. Loan & CC from bank 0.00 0.00 10.00
c. Profit before Interest, Tax & 5.23 7.96 9.92 10.86 13.46 15.31 18.89
Depreciation
d. Increase in trade payables 4.34 -0.00 1.60 1.39 1.27 1.61 1.80
Total Rs. 21.35 7.96 21.51 12.25 14.73 16.92 20.69
II CASH OUTFLOW
a. Capital expenditure 0.00 0.00 0.00 0.00 0.00 2.00 0.00
b. Repayment of term loan 0.00 0.00 0.00 0.00 0.00 0.00 0.00
c. Payment of Interest on CC 0.00 0.00 1.10 1.10 1.10 1.10 1.10
d. Increase in trade receivables 5.54 0.80 1.59 1.98 1.98 2.38 2.85
e. Increase in Inventories 12.28 2.57 8.97 2.38 2.62 2.88 3.17
f. Payment of income tax - 0.66 0.85 1.06 1.82 2.32 3.46
g. Drawings 2.85 3.56 4.27 5.13 6.16 7.39 8.86
Total Rs. 20.68 7.59 16.78 11.65 13.68 18.07 19.45
III Opening balance - 0.67 1.04 0.78 1.37 2.42 1.27
IV Net surplus (I-II) 0.67 0.37 4.73 0.60 1.04 -1.15 1.24
V Investment for expansion - - 5.00 - - -
VI Closing balance 0.67 1.04 0.78 1.37 2.42 1.27 2.51

Annexure A : Capital account Rs. in lacs
1 Opening balance 16.68 18.57 21.90 25.24 28.50 32.62 36.59

2 Capital contribution -
3 Profit after tax (PAT) 4.74 6.89 7.61 8.39 10.27 11.36 13.87
4 Less: Drawings 2.85 3.56 4.27 5.13 6.16 7.39 8.86
5 Closing balance 18.57 21.90 25.24 28.50 32.62 36.59 41.60
Annexure B : Long term borrowings - Banks Rs. in lacs

1 Opening balance - - - - - -
2 Disbursement -
3 Add: Interest - - - - - - -
- - - - - - -
4 Less: Repayment - - - - - - -
5 Closing balance - - - - - - -
Annexure C : Trade payables Rs. in lacs

1 Operating expenses 43.82 52.12 71.28 87.97 103.18 122.51 144.13
43.82 52.12 71.28 87.97 103.18 122.51 144.13

2 30 days outstanding 4.34 4.34 5.94 7.33 8.60 10.21 12.01
3 Trade Payables at the end 4.34 4.34 5.94 7.33 8.60 10.21 12.01
Annexure D : Tangible fixed assets Rs. in lacs

1 Vehicle
Opening W.D.V. 0.57 0.49 0.41 0.35 0.30 0.25 0.22
Additions 0.00 - - - - - -
Less: Depreciation @ 15% 0.09 0.07 0.06 0.05 0.04 0.04 0.03
Closing W.D.V. 0.49 0.41 0.35 0.30 0.25 0.22 0.18
2 Furniture
Opening W.D.V. 1.82 1.64 1.48 1.33 1.19 1.08 0.97
Additions 0.00 - - - - - -
Closing W.D.V. 1.64 1.48 1.33 1.19 1.08 0.97 0.87
3 Mobile
Opening W.D.V. 0.09 0.05 0.03 0.02 0.01 0.01 0.00
Additions 0.00 - - - - - -
Closing W.D.V. 0.05 0.03 0.02 0.01 0.01 0.00 0.00
4 Plant and Machinary

Opening W.D.V. 1.23 1.05 0.89 0.76 0.64 0.55 2.16
Additions 0.00 - - - - 2 -
Closing W.D.V. 1.05 0.89 0.76 0.64 0.55 2.16 1.84
Total Depreciation 0.49 0.42 0.36 0.31 0.27 0.53 0.46

Total Closing W.D.V. 3.23 2.81 2.45 2.15 1.88 3.35 2.90
Annexure E : Trade receivables Rs. in lacs

1 Revenue From Operations 39.04 50.75 63.44 79.30 95.16 114.19 137.03
39.04 50.75 63.44 79.30 95.16 114.19 137.03

2 45 days outstanding 5.54 6.34 7.93 9.91 11.89 14.27 17.13
3 Closing balance 5.54 6.34 7.93 9.91 11.89 14.27 17.13
Annexure F : Income tax Rs. in lacs

Sr. No. Particulars
2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28
1 EBT (Earning before tax) 4.74 7.55 8.46 9.45 12.09 13.68 17.33
2 Taxable Income 4.74 7.55 8.46 9.45 12.09 13.68 17.33
3 Basic exemption Limit 5.00 5.00 5.00 5.00 5.00 5.00 5.00
4 Income tax @ 5% - 0.13 0.13 0.13 0.13 0.13 0.13

5 Income tax @ 20% - 0.51 0.69 0.89 1.00 1.00 1.00
6 Income tax @ 30% - - - - 0.63 1.10 2.20
7 Total tax - 0.63 0.82 1.02 1.75 2.23 3.32
8 Cess @ 4% on total tax - 0.03 0.03 0.04 0.07 0.09 0.13
9 Income tax liability - 0.66 0.85 1.06 1.82 2.32 3.46

SIGNIFICANT RATIOS
A. LIQUIDITY RATIOS
1 Current Ratio:
a Current Assets:
i. Trade Receivables 5.54 6.34 7.93 9.91 11.89 14.27 17.13
ii. Investments 1.20 1.20 6.20 6.20 6.20 6.20 6.20
iii. Stock of Goods 12.28 14.85 23.82 26.20 28.82 31.70 34.87
iv. Cash & Bank Balances 0.67 1.04 0.78 1.37 2.42 1.27 2.51
Total (a) 19.70 23.44 38.73 43.69 49.33 53.45 60.72
b Current Liabilities:
i. Trade Payables 4.34 4.34 5.94 7.33 8.60 10.21 12.01
ii. Cash Credit From Bank - - 10.00 10.00 10.00 10.00 10.00
Total (b) 4.34 4.34 15.94 17.33 18.60 20.21 22.01
c Current Ratio (a / b) 4.53 5.40 2.43 2.52 2.65 2.64 2.76
d Average Current Ratio 3.28
Note
Current ratio under 1 indicates that a company's liabilities are greater than its assets and suggests that the
company in question would be unable to pay off its obligations if they came due at that point.
2 Quick Ratio:
a Liquid Assets:
i. Trade Receivables 5.54 6.34 7.93 9.91 11.89 14.27 17.13
ii. Investments 1.20 1.20 6.20 6.20 6.20 6.20 6.20
iii. Cash & Bank Balances 0.67 1.04 0.78 1.37 2.42 1.27 2.51
Total (a) 7.41 8.59 14.91 17.49 20.51 21.74 25.84
b Current Liabilities:
i. Trade Payables 4.34 4.34 5.94 7.33 8.60 10.21 12.01
c Liquid Ratio (a / b) 1.71 1.98 2.51 2.39 2.39 2.13 2.15

d Average Liquid Ratio 2.18
Note
In finance, the acid-test or quick ratio or liquidity ratio measures the ability of a company to use its near
cash or quick assets to extinguish or retire its current liabilities immediately.
B. SOLVENCY RATIOS
1 Debt-to-Equity Ratio:
a Debt Funds:
i. Long-Term Borrowings - - - - - - -
b Own Funds:
i. Capital 18.57 21.90 25.24 28.50 32.62 36.59 41.60
c Debt-to-Equity Ratio (a/b) - - - - - - -

d Avg. Debt Equity Ratio -
Note
Debt-to-equity ratio measure of a company's ability to repay its obligations. A high debt/equity ratio
generally means that a company has been aggressive in financing its growth with debt.
2 Interest Coverage Ratio:

a Earnings:
i. EBITDA 5.23 7.96 9.92 10.86 13.46 15.31 18.89
b Finance Cost:
i. Interest Paid/Payable - - 1.10 1.10 1.10 1.10 1.10
c Int. Coverage Ratio (a/b) - - 9.01 9.87 12.23 13.92 17.17

d Avg. Int. Coverage Ratio 62.21
Note
The interest coverage ratio is used to determine how easily a company can pay their interest expenses on
outstanding debt. The ratio is calculated by dividing a company's earnings before interest and taxes (EBIT)
by the company's interest expenses for the same period.
C. PROFITABILITY RATIOS
1 Operating Profit Ratio:
a Operating Revenue:
i. Revenue 39.04 50.75 63.44 79.30 95.16 114.19 137.03
b Operating Expenses:
i. Expenses 43.82 52.12 71.28 87.97 103.18 122.51 144.13
c Operating Profit (a-b):
i. Profit -4.79 -1.37 -7.84 -8.67 -8.03 -8.33 -7.11
d Op. Profit Ratio (c/a*100) -12.26% -2.70% -12.36% -10.94% -8.44% -7.29% -5.19%
e Avg. Op. Profit Ratio -8.45%
Note
The operating ratio can be used to determine the efficiency of a company's management by comparing
operating expenses to net sales. It is calculated by dividing the operating expenses by the net sales.
2 Net Profit Ratio:

a Operating Revenue:
i. Revenue 39.04 50.75 63.44 79.30 95.16 114.19 137.03
b Net Profit:
i. Net Profit After Tax 4.74 6.89 7.61 8.39 10.27 11.36 13.87
c Op. Profit Ratio (c/a*100) 12.15% 13.57% 12.00% 10.59% 10.79% 9.95% 10.13%
d Average N P Ratio 11.31%
Note
All non-operating revenues and expenses are not taken into account because the purpose of this ratio is to
evaluate the profitability of the business from its primary operations.
Return on Equity (ROE):
Sr. No. Particulars I II III IV V VI VII
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
a Equity Funds:
i. Capital 18.57 21.90 25.24 28.50 32.62 36.59 41.60
b Net Profit:
i. Net Profit After Tax 4.74 6.89 7.61 8.39 10.27 11.36 13.87
3
c Return on Eq. (a/b*100) 25.54% 31.45% 30.16% 29.45% 31.49% 31.05% 33.35%
d Average ROE 30.36%
Note Return on Equity / investment (ROI) measures the gain or loss generated on an investment relative to the
amount of money invested. ROI is usually expressed as a percentage and is typically used for financial
Revenue & Operating Expenses Chart Sales Op. Expenses
160.00
144.13
140.00 137.03
122.51
120.00
114.19
103.18
100.00 95.16
87.97
79.30
80.00
71.28
63.44
60.00
50.75 52.12
43.82
39.04
40.00
20.00
-
1 2 3 4 5 6 7
Operating Proft and After Tax Profit Comparision Chart
20.00
18.89
18.00
16.00
15.31
13.87
14.00 13.46
12.00 11.36
10.86
10.27 Operating Profit
9.92 Profit After Tax
10.00
8.39
7.96
8.00 7.61
6.89
6.00
5.23
4.74
4.00
2.00
-
1 2 3 4 5 6 7
Rs. in Lacs
Cash Inflow
10% 10%
9%
Capital contribution
Loan & CC from bank
Profit before Interest, Tax & Depreciation
Increase in trade payables
71%
Cash Outflow
4% 2%
5%
15%
Capital expenditure
Repayment of term loan
34% Payment of Interest on CC
Increase in trade receivables
Increase in Inventories
Payment of income tax
Drawings
Investment for expansion
31%
9%
TERM LOAN REPAYMENT SCHEDULE
Particulars Details
Loan amount Rs. -
Rate of interest p.a. 11%
Term in years 7
EMI (Monthly) -
Months Op. Balance Interest Principal Cl. Balance

1 - - - -
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- -
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COST OF PROJECT

Sr. No. Sources of funds Rs.

1 Capital Contribution by Proprietor 2.50

2 Finance Required From bank:

Sr. No. Utilisation of funds Rs.

1 Working Capital 12.50

II Long term borrowings

III Current Liabilities:

Total Liabilities 22.92 26.24 41.18 45.83 51.21 56.80 63.61

III Current assets

Total Assets 22.92 26.25 41.18 45.84 51.22 56.80 63.61

III Indirect Expenses

A EBITDA % 13.41% 15.69% 15.63% 13.69% 14.14% 13.41% 13.78%

Total Rs. 21.35 7.96 21.51 12.25 14.73 16.92 20.69

Total Rs. 20.68 7.59 16.78 11.65 13.68 18.07 19.45

III Opening balance - 0.67 1.04 0.78 1.37 2.42 1.27

V Investment for expansion - - 5.00 - - -

VI Closing balance 0.67 1.04 0.78 1.37 2.42 1.27 2.51

1 Opening balance 16.68 18.57 21.90 25.24 28.50 32.62 36.59

Annexure B : Long term borrowings - Banks Rs. in lacs

Annexure C : Trade payables Rs. in lacs

1 Operating expenses 43.82 52.12 71.28 87.97 103.18 122.51 144.13

43.82 52.12 71.28 87.97 103.18 122.51 144.13

Annexure D : Tangible fixed assets Rs. in lacs

4 Plant and Machinary

Total Depreciation 0.49 0.42 0.36 0.31 0.27 0.53 0.46

Annexure E : Trade receivables Rs. in lacs

39.04 50.75 63.44 79.30 95.16 114.19 137.03

3 Closing balance 5.54 6.34 7.93 9.91 11.89 14.27 17.13

Annexure F : Income tax Rs. in lacs

4 Income tax @ 5% - 0.13 0.13 0.13 0.13 0.13 0.13

9 Income tax liability - 0.66 0.85 1.06 1.82 2.32 3.46

c Liquid Ratio (a / b) 1.71 1.98 2.51 2.39 2.39 2.13 2.15

c Debt-to-Equity Ratio (a/b) - - - - - - -

2 Interest Coverage Ratio:

c Int. Coverage Ratio (a/b) - - 9.01 9.87 12.23 13.92 17.17

2 Net Profit Ratio:

Months Op. Balance Interest Principal Cl. Balance

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