PROJECT ON AGARBATTI MFG.

1 Name of the Entreprenuer ……………

2 Constitution (legal Status) Individual
………………….
:
Father's/Spouce's Name Ward No./Vill
3

Unit Address : Muni/Block: ……………….

4
District : ALIPURDUAR
Pin: ……….. State: WEST BENGAL
E-Mail :
Mobile ………………
5 Product and By Product AGARBATTI MFG.
6 Cost of Project Rs. 498890.00
Name of the project / business activity proposed
: AGARBATTI MANUFACTURING

7 Means of Finance
Term Loan Rs. 4,73,946.00
KVIC Margin Money Own Rs. 25,000.00
Capital Rs. 24945.00
Debt Service Coverage Ratio
8 2.78

9 Pay Back Period 5 Years

Project Implementation Period

10 3
Months
11 Break Even Point 60.00%
12 Employment 5
2hp
13 Power Requirement
14 Major Raw materials Rolled sticks ,D.E.P. ,White chips powder
Estimated Annual Sales Turnover
15 Rs. 1450000.00
DETAILED PROJECT REPORT
1 INTRODUCTION :
2 COST OF PROJECT
A. Fixed Capital Investment
a. Land : 0 Own

b. Workshed Area Sq.ft Rate in Rs. Amt. In Rs.

Civil Construction 250 200.00 50000.00
Total 50000.00
C. Machinery Qty. Rate Amount in Rs.
Aluminium trays 5'x5' 4 2500.00 10000.00
Mixer Machine 1 6000.00 6000.00
Heat sealing machine 2 1500.00 3000.00
Sprayer 1 1000.00 1000.00
Weighing balance platform type 1 2000.00 2000.00
Automatic agarbati making machine 1 110000.00 110000.00
Other Equipment 1 20000.00 20000.00
0 0 0.00 30000.00
Total 182000.00

d. Preliminary & Pre-operative Cost : Rs. 48000.00

e. Furniture & Fixtures : Rs. 18000.00
 f. Contingency/Others/Miscellaneous : Rs. 19000.00
Total Capital Expenditure : Rs. 317000.00
Working Capital : Rs. 181890.00
Total Cost Project : Rs. 498890.00
3.1 Means of Financing :

Margin Money (Govt. Subsidy) Rs. 25000.00

Bank Loan Rs. 473890.00
498890.00
Total

3.2 STATEMENT SHOWING THE REPAYMENT OF TERM LOAN & WORKING CAPITAL :
TERM LOAN

Year Opening Balance Installment Closing Balance

1st 301150 15058 286093

2nd 286093 60230 225863
3rd 225863 60230 165633
4th 165633 60230 105403
5th 105403 60230 45173
6th 45173 60230 0

WORKING CAPITAL
Year Opening Balance Installment Closing Balance
1st 172796 8640 164156
2nd 164156 34559 129597
3rd 129597 34559 95038
4th 95038 34559 60479
5th 60479 34559 25919
6th 25919 34559 0
3.3 STATEMENT SHOWING THE DEPRECIATION ON FIXED ASSETS:
WORKSHED @
Particulars 1st Year 2nd Year 3rd Year 4th Year
Opening Balance 50000 47500 45125 42869
Depreciation 2500 2375 2256 2143
Closing Balance 47500 45125 42869 40725
MACHINERY @
Opening Balance 182000 163800 147420 132678
Depreciation 18200 16380 14742 13268
Closing Balance 163800 147420 132678 119410
TOTAL DEPRECIATION
Workshed 2500 2375 2256 2143
Machinery 18200 16380 14742 13268
Total 20700 18755 16998 15411
4 Schedule of Sales Realization :
4.1 Details of Sales
Rate/ No. of Amount in Rs.
Particulars of Product
Pair/Unit Pair/Unit
Purfumed Agarbati 55.00 5000 275000.00
 Plain Agarbati 30.00 5000 150000.00
Sandal Agarbati 35.00 3000 105000.00
Mosquito Agarbati 40.00 5000 200000.00
Pineapple agarbati 60.00 4000 240000.00
Others Variours flavoues agarbati 80.00 6000 480000.00
Total 1450000.00
4.2 Capacity Utilization of Sales
Particulars 1st Year 2nd Year 3rd Year 4th Year
Capacity Utilization 70% 80% 90% 90%
Sales / Receipts 1015000 1160000 1305000 1305000
5 Rawmaterials :
Particulars Unit Rate/unit Reqd.Unit Amount in Rs.
Rolled sticks kg 400.00 70 28000.00
D.E.P. LTR 120.00 750 90000.00
White chips powder kg 150.00 70 10500.00
Sandal wood powder kg 160.00 70 11200.00
Bamboo sticks kg 35.00 900 31500.00
Kuppam dust kg 155.00 50 7750.00
Perfumes LTR 415.00 50 20750.00
Polythene wrapper, packets,etc kg 180.00 400 72000.00
Polythene bags KG 250.00 500 125000.00
Total 396700.00
5.1 Wages :
No. of Wages Amount in Rs.
Particulars
Worker Per Month (Per Annum)
Skilled Worker 2 13000.00 312000.00
Semi- Skilled Worker 2 9000.00 216000.00
Total 4 528000.00

5.2 Repairs and Maintenance : Rs. 15000.00

5.3 Power and Fuel : Rs. 24000.00
5.4 Other Overhead Expenses : Rs. 10000.00
6 Administrative Expenses :
6.1 Salary
Sales Person 1 9000.00 108000.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0.00 0.00
0 0.00 0.00
Total 1 108000.00

6.2 Telephone Expenses 10000.00

6.4 Stationery & Postage 15000.00
6.5 Advertisement & Publicity 12000.00
6.7 Other Miscellaneous Expenses 15000.00
Total 160000.00
7 Capacity Utilization of Manufacturing & Administrative Expenses :
Particulars 1st Year 2nd Year 3rd Year 4th Year
Capacity Utilization 70% 80% 90% 90%
Manufacturing Expenses
Rawmaterials 277690 317360 357030 357030
 Wages 369600 422400 475200 475200
Repairs & Maintenance 10500 12000 13500 13500
Power & Fuel 16800 19200 21600 21600
Other Overhead Expenses 7000 8000 9000 9000
Administrative Expenses
Salary 108000 108000 108000 108000
Postage Telephone Expenses 7000 8000 9000 9000
Stationery & Postage 10500 12000 13500 13500
Advertisement & Publicity 8400 9600 10800 10800
Workshed Rent 0 0 0 0
Other Miscellaneous Expenses 10500 12000 13500 13500
Total: 825990 928560 1031130 1031130
8 Assessment of Working Capital :
Particulars Amount in Rs.
Sale 1450000.00
Manufacturing Expenses
Raw Material 396700.00
Wages 528000.00
Repair & Maintenance 15000.00
Power & Fuel 24000.00
Other Overhead Expenses 10000.00
Production Cost 973700.00
Administrative Cost 160000.00
Manufacturing Cost 1133700.00
Working Capital Estimate :
Element of Working Capital No of Days Basis Amount in Rs.
Raw Materials 15 Material Cost 19835.00
Stock in process 15 Production Cost 48685.00
Finished goods 15 Manufacturing Cost 56685.00
Receivable by 15 Manufacturing Cost 56685.00
Total Working Capital Requirement Per Cycle 181890.00
9 Financial Analysis
9.1 Projected Profit & Loss Account :
Particulars 0 Year 1st Year 2nd Year 3rd Year
Sales / Receipts 1015000 1160000 1305000
1015000 1160000 1305000
Manufacturing Expenses
Rawmaterials 277690 317360 357030
Wages 369600 422400 475200
Repairs & Maintenance 10500 12000 13500
Power & Fuel 16800 19200 21600
Other Overhead Expenses 7000 8000 9000
Depreciation 20700 18755 16998
Production Cost 702290 797715 893328
Administrative Expenses
Salary 108000 113400 119070
Postage Telephone Expenses 7000 8000 9000
Stationery & Postage 10500 12000 13500
Advertisement & Publicity 8400 9600 10800
 Workshed Rent 0 0 0
Other Miscellaneous Expenses 10500 12000 13500
Administrative Cost 144400 155000 165870
Interest on Bank credit @ 9%
Term Loan 27104 25748 20328
Working Capital Loan 15552 14774 11664
Cost of Sale 889345 993237 1091190
Net Profit Before Tax 125655 166763 213810
Less Tax 0.00 0.00 0.00
Net Profit 125655 166763 213810
9.2 CALCULATION OF DEBT SERVICE CREDIT RATIO (D.S.C.R) :
Particulars 0 Year 1st Year 2nd Year 3rd Year
Net Profit 125655 166763 213810
Add :
Depreciation 20700 18755 16998
TOTAL - A 146355 185518 230809
Payments :
On Term Loan :
Interest 27104 25748 20328
Installment 15058 60230 60230
On Working Capital
Interest 15552 14774 11664
TOTAL - B 57713 100752 92221
D.S.C.R = A/B
2.54 1.84 2.50
Average D.S.C.R
9.3 PROJECTED BALANCE SHEET :
Particulars 0 Year 1st Year 2nd Year 3rd Year
LIABILITIES :
Promoters Capital 24945 24945 24945
Profit 125655 166763 213810
Term Loan 301150 286093 225863
Working Capital Loan 172796 164156 129597
Current Liabilities 0 0 0
Sundry Creditors 0 0 0
624546 641956 594215
ASSETS :
Gross Fixed Assets : 250000 229300 210545
Less : Depreciation 20700 18755 16998
Net Fixed Assets 229300 210545 193547
Preliminary & Pre-Op. Expenses 48000 36000 27000
Current Assets 172796 164156 129597
Cash in Bank/Hand 222450 267255 271071
Total 624546 641956 594215
9.4 CASH FLOW STATEMENT :
Particulars 0 Year 1st Year 2nd Year 3rd Year
Net Profit 125655 166763 213810
Add : Depreciation 20700 18755 16998
Term Loan 301150 286093 225863
Working Capital Loan 172796 164156 129597
 Promoters Capital 24945 0 0
Total 645246 635766 586268
Total Fixed Capital Invested 317000
Repayment of Term Loan 15058 60230 60230
Repayment of WC Loan 8640 34559 34559
Current Assets 172796 164156 129597
Total 196493 258945 224386
Opening Balance 0 448753 825573
Surplus 448753 376821 361882
Closing Balance 448753 825573 1187455
9.5 BREAK EVEN POINT AND RATIO ANALYSIS :
Particulars 0 Year 1st Year 2nd Year 3rd Year
Fixed Cost 192204 199503 203196
Variable Cost 717842 812489 904992
Total Cost 910045 1011992 1108188
Sales 1015000 1160000 1305000
Contribution (Sales-VC) 297158 347511 400008
B.E.P in % 64.68% 57.41% 50.80%
Break Even Sales in Rs. 656507 665947 662913
Break Even Units 11936 12108 12053
Current Ratio 2.60 1.21 1.02
Net Profit Ratio 12.38% 14.38% 16.38%
This Project Report has been prepared based on the data furnished by the entrepreneur whose details are given
in the application.
Place :
Date:
Signature of the Beneficiary