Project report

on
E-rickshaw assembly
For
Mr. Sonu Kumar
At.- Dalsingsarai
P.O.-do
P.S.-do
Dist.- Samastipur
Mob. no.- 7004638758

Prepared by:-
Kanchan Consultants and Engineers
Regd. Under Govt. of India Min. of MSME
Regd. No- UADYAM-BR-26-0017362
Indrapuri Road no.:- 02 ,Patna- 800024
 CONTENTS
Sl. TOPIC Page No.
No.
1. PROJECT AT A GLANCE 03
2. INTRODUCTION 04
3. BASIS AND PRESUMPTION 05
4. IMPLEMENTAION SCHEDULE 05
5. FIXED CAPITAL 06-08
6. WORKING CAPITAL 09-11
7. MEANS OF FINANCE AND 11-12
BANK LOAN DEATAILS
8. COST OF PRODUCTION 13
9. TURNOVER 14
10. PROFIT PER ANNUM AND ROR 15
11. BREAK EVEN POINT 16
12. REPAYMENT SCHEDULE 17
13. DEBT SERVICES COVERAGE 18
RATIO (DSCR)

Page No.:- 02
 PROJECT AT A GLANCE
1. Name Mr. Sonu Kumar
2. Address At.- Dalsingsarai
P.O.-do, P.S.-do
Dist.- Samastipur
3. Location Same
4. Activity E. Rickshaw
Assembly
5. Category General (Rural)
6. Project Cost 33,00,000/-
7. Fixed capital 20,00,000/-
8. Working Capital 13,00,000/-
9. Term Loan 18,00,000/-
10. Cash Credit 11,70,000/-
11. Promoter’s Contribution 3,30,000/-
12. Subsidy 8,25,000/-
13. R.O.R 27.27%
14. B.E.P. 41.16 %
15. DSCR 2.23

Page No.:- 03
 Introduction

E-Rickshaw is increasing day by day in every city/town

in India due to its eco-friendly nature. It is not
consuming diesel or petrol. It runs on battery for
around 100 km per day. So for local convenience, E-
Rickshaw is widely used. Fare is also comparatively
lower than conventional Rickshaw and other transport
for local travelling. So the demand of E-Rickshaw is
very-very good in the market. These E-Rickshaws are
manufactured outside Bihar and marketed in the state.
So the proposed unit has got very good demand here.
The entrepreneur has got some business experience in
this line which will help him to stand in the market.
This product will be assembled and marketed in the
whole state of Bihar. So the future prospect of this unit
is very-very bright.

Page No.:- 04
 Basis & Presumption
1. The unit will run 8 hrs per day, 25 days in a month
and 300 days in a year.
2. The Rate of interest on Term Loan will be 10.00% &
and on C.C. - 11% p.a.
3. The Repayment Period is 6 years with one year
Moratorium Period.
4. The unit will utilize 60%, 70% & 80% capacity in the
1st, 2nd, & 3rd and onward years respectively.

Implementation schedule
1. Project Report preparation 1 week
and submission online under PMEGP
Scheme
2. Clearance from DIC 2 weeks
3. Clearance from Bank 3 weeks
4. Procurement of Fixed asset 1 week
5. Arrangement of Raw material, staff & 1 week
Labor
6. Starting of Production 1 week
Total 9 weeks

Page No.:- 05
 FIXED CAPITAL
a) Land and building- own
1. Area 4600 sq. feet
2. Shed
(50 x 30 = 1500 sq. feet x @300/-) 4,50,000/-
Total 4,50,000/-

Page No.:- 06
 b) Machinery and Equipment
1. Press machine- 2 Nos x @1,00,000/- 2,00,000/-
2. Drill machine- 2 Nos x @50,000/- 1,00,000/-
3. Welding machine- 2 Nos x 80,000/-
@40,000/-
4. Grinding machine- 2 Nos x 80,000/-
@40,000/-
5. Spray painting machince- 1 set x 3,00,000/-
@3,00,000/-
6. Assembly line for 10 pc- L.S. 2,40,000/-
Total 10,00,000/-
G.S.T. @18% 1,80,000/-
Installation , Electrification and 1,00,000/-
transport @10%
Total 12,80,000/-

Page No.:- 07
 c) Misc. Fixed Asset
1. Tools and Tackles- L.S. 50,000/-
2. Furniture 1,00,000/-
3. Office equipment 50,000/-
Total 2,00,000/-

d) Prel. and preop. Expenses = 70,000/-

TOTAL FIXED CAPITAL:- (a)+(b)+(c)+(d)

= 4,50,000+12,80,000+2,00,000+70,000
= 20,00,000/-

Page No.:- 08
 WORKING CAPITAL
a) Raw Materials (Per Month)
1. Components for 8 pc per L.S. 2,00,000/-
month
2. B.P. Sheet L.S. 1,00,000/-
3. Paint L.S. 50,000/-
4. Glass L.S. 1,00,000/-
5. Battery L.S. 4,80,000/-
6. Tyre and tube 3 pc 1,00,000/-
Total 7,50,000/-

b) Staff and Labour (per month)

1. Manager 1 Nos 25,000/-
2. Supervisor 1 Nos 10,000/-
3. Skilled Worker 3 Nos 36,000/-
4. Helper 3 Nos 24,000/-
5. Clerk 1 Nos 10,000/-
Total 9 Nos 1,05,000/-

Page No.:- 09
 c) Other Expenses (Per month)
1. Transportation 20,000/-
2. Publicity 5,000/-
3. Repair and Maintenance 5,000/-
4. Insurance 4,000/-
5. Electricity 10,000/-
6. Misc. 6,000/-
Total 50,000/-

d) Work in process- 1,00,000/-

e) Stock of F.G.- 1,50,000/-

Page No.:- 10
 TOTAL WORKING CAPITAL
1. Raw Material 9,50,000/-
2. Salary and Wages 1,05,000/-
3. Other Expenses 50,000/-
4. Work in process 50,000/-
5. Stock in F.G. 1,45,000/-
Total 13,00,000/-

TOTAL PROJECT COST

1. Fixed capital 20,00,000/-
2. Working capital 13,00,000/-
Total 33,00,000/-

MEANS OF FINANCE UNDER PMEGP

1. Promoter’s contribution @10% 3,30,000/-
2. Subsidy @25% 8,25,000/-
3. Bank loan @65% 21,45,000/-
Total 33,00,000/-

Page No.:- 11
 BANK LOAN DETAILS
1. Term loan 13,00,000/-
2. Subsidy 5,00,000/-
3. Promoter’s contribution 2,00,000/-
Total 20,00,000/-

1. Cash credit 8,45,000/-

2. Subsidy 3,25,000/-
3. Promoter’s contribution 1,30,000/-
Total 13,00,000/-

Note:-In case of subsidy is locked in F.D, the

same amount may please be added in T.L. &
C.C.

After Subsidy Added:-

1. Term Loan – 18,00,000/-
2. Cash Credit – 11,70,000/-

Page No.:- 12
 COST OF PRODUCTION(P.A.)
1. Raw material 9,50,000 x12 114,00,000/-
2. Salary and 1,05,000 x12 12,60,000/-
Wages
3. O.E. 50,000 x12 6,00,000/-
4. Depreciation 4,50,000 x@5% 23,000/-
14,80,000 x@10% 1,48,000/-
5. Interest 18,00,000 x@10% 1,80,000/-
11,70,000 x@11% 1,29,000/-
Total 137,40,000/-

Page No.:- 13
 TURNOVER PER ANNUM
1. By sale of E-Rickshaw 150,00,000/-
@1,50,000/- x100 pcs.
2. By disposal of scrap 40,000/-
Total 150,40,000/-

Page No.:- 14
 PROFIT P.A. (Rs. in Lakhs)
1. Turn Over 150.40
2. Cost of Production 137.40
3. Gross profit 13.00
4. Selling Expenses 3.00
5. Operating profit 10.00
6. Income tax @10% 1.00
7. Net profit 9.00

RATE OF RETURN (ROR)

1. Profit 9.00
2. Investment 33.00

𝑷𝒓𝒐𝒇𝒊𝒕 ×𝟏𝟎𝟎
ROR =
𝑰𝒏𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕

𝟗.𝟎𝟎 ×𝟏𝟎𝟎
=
𝟑𝟑.𝟎𝟎

= 27.27%

Page No.:- 15
 BREAK EVEN POINT (BEP)
FIXED COST(F.C.)
1. Total depreciation 1.71
2. Interest in T.L. 1.80
3. 40% of Salary and O.E. 7.44
Total 10.95

𝑭.𝑪.×𝟏𝟎𝟎
BEP at 60% cap. =
𝑭.𝑪.+𝑷𝒓𝒐𝒇𝒊𝒕

𝟏𝟎.𝟗𝟓 ×𝟏𝟎𝟎
=
𝟏𝟎.𝟗𝟓+𝟗.𝟎𝟎

= 54.88%
𝟔𝟎
BEP at 80% cap. = 54.88 x
𝟖𝟎

= 41.16%

Page No.:- 16
 REPAYMENT SCHEDULE
1. Term loan 18.00
2. Rep. Period 6 years
3. Installment 3.00 p.a.
4. Interest 10.0 % p.a.
5. Moratorium 1 year

YEAR PRINCIPAL INTREST INSTALLMENT

@10%
1st 18.00 1.80 NIL
2nd 18.00 1.80 3.00
3rd 15.00 1.50 3.00
4th 12.00 1.20 3.00
5th 9.00 0.90 3.00
6th 6.00 0.60 3.00
7th 3.00 0.30 3.00

NOTE: - Bank may fix monthly EMI as per their

norms.

Page No.:- 17
 DEBT SERVICE COVERAGE RATIO
(DSCR)
1. Net profit 9.00
2. Depreciation 1.71
3. Net surplus (A) 10.71
4. Installment 3.00
5. Interest 1.80
6. Total (4+5)-B 4.80
7. DSCR = (A/B) 2.23

Page No.:- 18