2023

PROJECT
REPORT

Wire nails
finline address
 Project at a glance

Name & Address of Unit

Wire nails
finline address ,123456

Activity : Wire nails

Email : sample@finline.in

Phone : 1234567891

Constitution : Proprietorship

Scheme : sme

Number of employment : 5

Total project cost : 11,25,000.00

Fixed Capital : 7,50,000.00

Working Capital : 3,75,000.00

Total Bank loan : 8,62,500.00

Promoter(s) contribution : 2,62,500.00

Term loan : 5,62,500.00 Interest : 11.00 %

Working capital loan : 3,00,000.00 Interest : 11.00 %

Name & address of promoter(s)

Name : finline sample project

Address : finline address

Phone : 1234567891

Designation : Founder

Category : na

E-mail : sample@finline.in
 Project Feasibility Ratio

Debt Service Coverage Ratio (Average) : 5.40

Current ratio (Average) : 5.76

Year 1 Year 2 Year 3 Year 4 Year 5

Current ratio 2.79 4.17 5.66 7.24 8.90

Quick ratio 1.54 2.86 4.28 5.79 7.38

Interest coverage ratio 18.96 8.14 9.85 12.30 16.24

Debt equity ratio 1.13 0.61 0.37 0.23 0.13

TOL/TNW 1.13 0.61 0.37 0.23 0.13

DSCR 10.47 3.82 4.03 4.22 4.40

Gross profit Sales Percentage % 57.99 % 29.08 % 28.86 % 28.59 % 28.29 %

Net profit Sales Percentage % 36.95 % 14.00 % 14.42 % 14.74 % 14.97 %

BEP in % of installed capacity % 26.55 % 44.34 % 44.30 % 44.52 % 44.96 %

BEP in sales of Rupees 3.39 14.66 15.70 16.82 18.05

Return On Capital Employed 0.46 0.35 0.31 0.27 0.25

Net profit Sales % Quick ratio

Project Feasibility graph
Revenue v/s Expense

Expense Splitup
 Introduction

Wire nail is a very well-known item, as it is a very common product, which is normally used in daily life. It is
used for fastening purposes. Its use is so widespread that it has become part and parcel of life. Wire nails are
pin-shaped, sharp objects of hard metal or alloy used as fasteners. They are typically made of steel, often
dipped or coated to prevent corrosion in harsh conditions or improve adhesion. Ordinary nails for wood are
usually of soft, low carbon, or mild steel while those for concrete are harder. Nails are used for various
purposes and industries ranging from building and construction to carpentry. There is a tremendous variety of
nails since they are used for so many different purposes. Wire nails are pin-shaped, sharp objects of hard
metal or alloy used as fasteners. They are typically made of steel, often dipped coated to prevent corrosion in
harsh conditions or improve adhesion. Ordinary nails for wood are usually of soft, low carbon, or mild steel
while those for concrete are harder.

Nails are used for various purposes and industries ranging from building and construction to carpentry. There
is a tremendous variety of nails since they are used for so many different purposes. There had been an erratic
growth of the indigenous industry from past years. Since the manufacture of wire nails could be undertaken
on a small scale or even on a cottage scale, there is a mushroom growth of nail-making units in operation. The
future of wire nails will directly depend upon building activity in the country. As we know that at the present
country is facing an acute housing problem, so naturally the demand for wire nails is high.
 Product / Services & process

Most nails are made from coils of metal wire. The wire is fed into a nail-making machine which can produce
up to 700 nails per minute. The nails may then be further twisted or formed, cleaned, finished, and packaged.
 Plant & Machinery / Equipments

Nail Making Machine (3"x4mm,2.5"x3mm,2"x2.5mm) - 01 Set

Nail Making Machine (2.5"x3.2mm,2"x3.2mm) - 01 Set

Nail Making Machine (2"x3.6mm,1.5"x2.6mm) - 01 Set

Nail making Machine ( 1"x2mm,1.5"x2mm) - 01 Set

Polishing Machine - 01 Set

Bench Grinder - 01 Set

Drilling Machine - 01 Set

 Market potential & Strategy

India is witnessing a construction boom, particularly in suburban areas. This has hugely increased the
demand for building materials, including wire nails, which is expected to keep up with the upward trajectory
for many decades to come. According to industry inputs, only a few percent of the total demand is met by
local production and for the rest, the state depends on outside produce for the unsatisfied demand.
 Project Cost
Sl. no Item Amount Rs.

1 Land 3,00,000.00

2 Machinery 2,00,000.00

3 Computers/Laptops & Printers 1,00,000.00

4 Racks & storage 20,000.00

5 Electrification & Electricity backup 20,000.00

6 Transportation of machinery 1,00,000.00

7 Installation of machinery 10,000.00

8 Working Capital 3,75,000.00

Total 11,25,000.00
 Working Capital Computation
Sl. no Item Amount Rs.

1 Consumables / stock in hand 1,87,500.00

2 Work in progress 75,000.00

3 Finished goods 1,12,500.00

4 Total working capital 3,75,000.00

5 Own Contribution 75,000.00

6 Working capital loan 3,00,000.00

 Annual Sales / Revenue
Sales is calculated from November 2023

Sl. no Item Rate Quantity Month Unit Total Rs.

1 Sales 14.86 X 26500 X 5 Kilogram 19,68,625.00

Total 19,68,625.00
 Total Yearly Expense
Expense is calculated from November 2023 .

Sl. no Item Amount Rs.

1 Salary 1,00,000.00

2 Repairs and maintenance charges 5,00,000.00

3 Electricity/Gas charges 2,50,000.00

4 Purchase raw materiale 5,00,000.00

5 Transportation cost 1,00,000.00

6 Marketing & advertising cost 50,000.00

Total 15,00,000.00
 Application of Fund
Sl. no Item Subsidy % No. Rate Amount Rs.

1 Land 0.00 1 3,00,000.00 3,00,000.00

2 Machinery 0.00 1 2,00,000.00 2,00,000.00

3 Computers/Laptops & Printers 0.00 1 1,00,000.00 1,00,000.00

4 Racks & storage 0.00 1 20,000.00 20,000.00

5 Electrification & Electricity backup 0.00 1 20,000.00 20,000.00

6 Transportation of machinery 0.00 1 1,00,000.00 1,00,000.00

7 Installation of machinery 0.00 1 10,000.00 10,000.00

Total Investment 7,50,000.00

Total Subsidy 0.00

Net Investment 7,50,000.00

 Means of Finance
Sl. no Item Amount

1 Term Loan 5,62,500.00

2 Working capital Loan 3,00,000.00

3 Total loan 8,62,500.00

4 Promoters contribution on term loan 1,87,500.00

5 Promoters contribution on working capital loan 75,000.00

 Profitability Statement
All figures are in lakhs
31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

Utilisation of installed capacity @100 @ 65 % @ 70 % @ 75 % @ 80 % @ 85 %

Revenue from operation

Sales 47.24 12.79 33.07 35.43 37.79 40.15

Add :

Closing stock 3.75 3.93 4.13 4.34 4.55

Total 16.54 37.01 39.56 42.13 44.71

Less :

Opening stock 0 3.75 3.93 4.13 4.34

Purchase raw materiale 12.00 3.25 8.40 9.00 9.60 10.19

Salary 2.40 1.0 2.64 2.90 3.19 3.51

Repairs and maintenance charges 12.00 3.25 8.40 9.00 9.60 10.19

Electricity/Gas charges 6.00 1.62 4.20 4.50 4.80 5.09

Total 9.12 27.39 29.34 31.32 33.35

Gross profit 7.42 9.62 10.22 10.80 11.36

Less :

Transportation cost 0.65 1.68 1.80 1.92 2.04

Marketing & advertising cost 0.33 0.84 0.90 0.96 1.02

Total 0.98 2.52 2.70 2.88 3.06

Profit before interest, tax and depreciation 6.44 7.10 7.52 7.92 8.30

Depreciation 0.20 0.44 0.38 0.32 0.27

Interest on TL 0.20 0.54 0.43 0.31 0.18

Interest on WC 0.14 0.33 0.33 0.33 0.33

Profit before tax 5.91 5.78 6.38 6.96 7.51

Income Tax 1.18 1.15 1.27 1.39 1.50

Profit after tax 4.72 4.63 5.11 5.57 6.01

 Cash flow statement
All figures are in lakhs
Cash Inflow Pre operative period 31/03/24 31/03/25 31/03/26 31/03/27 31/03/28
Capital 1.87 0.75 0 0 0 0
Subsidy 0 0 0 0 0 0
Termloan 5.62 0 0 0 0 0
Profit before tax with interest 0 6.25 6.65 7.15 7.60 8.03
Increase in WC loan 0 3.00 0 0 0 0
Depreciation 0 0.20 0.44 0.38 0.32 0.27
Increase in Current liability 0 0 0 0 0 0
Total Cash Inflow 7.50 10.19 7.10 7.52 7.92 8.30

Cash Outflow
Fixed Assets 7.50 0 0 0 0 0
Increase in Current asset 3.75 0.19 0.20 0.21 0.22
Interest on TL 0 0.20 0.54 0.43 0.31 0.18
Interest on WC 0 0.14 0.33 0.33 0.33 0.33
Income Tax 0 1.18 1.15 1.27 1.39 1.50
Decrease in Term loan 0.29 0.93 1.03 1.15 1.28
Drawing 0 0 0 0 0 0
Total Cash Outflow 7.50 5.55 3.14 3.27 3.39 3.51
Opening balance 0 0 4.63 8.59 12.85 17.38
Net Cashflow 0 4.63 3.95 4.25 4.53 4.78
Closing balance 0 4.63 8.59 12.85 17.38 22.16
 Balance sheet
All figures are in lakhs
Liability Pre operative period As of 31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

A. Share holders funds

Capital 1.87 2.62 2.62 2.62 2.62 2.62

Reserve & Surplus 0 4.72 9.35 14.46 20.04 26.05

B.Non current Liabilities

Termloan 5.62 5.33 4.41 3.37 2.22 0.94

C.Current Liabilities

Working capital loan 0 3.00 3.00 3.00 3.00 3.00

Account payable 0 0 0 0 0

Total Liability 7.50 15.69 19.39 23.47 27.89 32.62

Asset

A. Non current Assets

Fixed Assets 7.50 7.30 6.86 6.48 6.16 5.89

B. Current Assets

Inventory 0 3.75 3.93 4.13 4.34 4.55

Trade receivables 0 0 0 0 0 0

Cash and cash equivalence 0 4.63 8.59 12.85 17.38 22.16

Total Asset 7.50 15.69 19.39 23.47 27.89 32.62

 Repayment of Term loan
All figures are in lakhs
Year Month Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end

1 Dec 2023 1 5.62 0.071 0.052 0.12 5.55

1 Jan 2024 2 5.55 0.071 0.051 0.12 5.48

1 Feb 2024 3 5.48 0.072 0.050 0.12 5.41

1 Mar 2024 4 5.41 0.073 0.050 0.12 5.33

2 Apr 2024 5 5.33 0.073 0.049 0.12 5.26

2 May 2024 6 5.26 0.074 0.048 0.12 5.19

2 Jun 2024 7 5.19 0.075 0.048 0.12 5.11

2 Jul 2024 8 5.11 0.075 0.047 0.12 5.04

2 Aug 2024 9 5.04 0.076 0.046 0.12 4.96

2 Sep 2024 10 4.96 0.077 0.046 0.12 4.88

2 Oct 2024 11 4.88 0.077 0.045 0.12 4.81

2 Nov 2024 12 4.81 0.078 0.044 0.12 4.73

2 Dec 2024 13 4.73 0.079 0.043 0.12 4.65

2 Jan 2025 14 4.65 0.080 0.043 0.12 4.57

2 Feb 2025 15 4.57 0.080 0.042 0.12 4.49

2 Mar 2025 16 4.49 0.081 0.041 0.12 4.41

3 Apr 2025 17 4.41 0.082 0.040 0.12 4.33

3 May 2025 18 4.33 0.083 0.040 0.12 4.24

3 Jun 2025 19 4.24 0.083 0.039 0.12 4.16

3 Jul 2025 20 4.16 0.084 0.038 0.12 4.07

3 Aug 2025 21 4.07 0.085 0.037 0.12 3.99

3 Sep 2025 22 3.99 0.086 0.037 0.12 3.90

3 Oct 2025 23 3.90 0.086 0.036 0.12 3.82

3 Nov 2025 24 3.82 0.087 0.035 0.12 3.73

3 Dec 2025 25 3.73 0.088 0.034 0.12 3.64

3 Jan 2026 26 3.64 0.089 0.033 0.12 3.55

3 Feb 2026 27 3.55 0.090 0.033 0.12 3.46

3 Mar 2026 28 3.46 0.091 0.032 0.12 3.37

4 Apr 2026 29 3.37 0.091 0.031 0.12 3.28

4 May 2026 30 3.28 0.092 0.030 0.12 3.19

4 Jun 2026 31 3.19 0.093 0.029 0.12 3.10

4 Jul 2026 32 3.10 0.094 0.028 0.12 3.00

4 Aug 2026 33 3.00 0.095 0.028 0.12 2.91

4 Sep 2026 34 2.91 0.096 0.027 0.12 2.81

4 Oct 2026 35 2.81 0.096 0.026 0.12 2.72

4 Nov 2026 36 2.72 0.097 0.025 0.12 2.62

4 Dec 2026 37 2.62 0.098 0.024 0.12 2.52

Year Month Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end

4 Jan 2027 38 2.52 0.099 0.023 0.12 2.42

4 Feb 2027 39 2.42 0.10 0.022 0.12 2.32

4 Mar 2027 40 2.32 0.10 0.021 0.12 2.22

5 Apr 2027 41 2.22 0.10 0.020 0.12 2.12

5 May 2027 42 2.12 0.10 0.019 0.12 2.02

5 Jun 2027 43 2.02 0.10 0.019 0.12 1.91

5 Jul 2027 44 1.91 0.10 0.018 0.12 1.81

5 Aug 2027 45 1.81 0.11 0.017 0.12 1.70

5 Sep 2027 46 1.70 0.11 0.016 0.12 1.60

5 Oct 2027 47 1.60 0.11 0.015 0.12 1.49

5 Nov 2027 48 1.49 0.11 0.014 0.12 1.38

5 Dec 2027 49 1.38 0.11 0.013 0.12 1.27

5 Jan 2028 50 1.27 0.11 0.012 0.12 1.16

5 Feb 2028 51 1.16 0.11 0.011 0.12 1.05

5 Mar 2028 52 1.05 0.11 0.0096 0.12 0.94

6 Apr 2028 53 0.94 0.11 0.0086 0.12 0.83

6 May 2028 54 0.83 0.11 0.0076 0.12 0.71

6 Jun 2028 55 0.71 0.12 0.0065 0.12 0.60

6 Jul 2028 56 0.60 0.12 0.0055 0.12 0.48

6 Aug 2028 57 0.48 0.12 0.0044 0.12 0.36

6 Sep 2028 58 0.36 0.12 0.0033 0.12 0.24

6 Oct 2028 59 0.24 0.12 0.0022 0.12 0.12

6 Nov 2028 60 0.12 0.12 0.0011 0.12 0

 Debt Service Coverage Ratio
All figures are in lakhs
Particulars 31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

Receipts

a).Net Profit 4.72 4.63 5.11 5.57 6.01

b).Depreciation 0.20 0.44 0.38 0.32 0.27

c).Interest on termloan 0.20 0.54 0.43 0.31 0.18

Total 5.12 5.61 5.92 6.20 6.46

Repayments

a).Loan Principal 0.29 0.93 1.03 1.15 1.28

b).Interest on termloan 0.20 0.54 0.43 0.31 0.18

Total 0.49 1.46 1.46 1.46 1.46

DSCR 10.48 3.82 4.03 4.23 4.41

Average DSCR : 5.40

 Depreciation
All figures are in lakhs
Particulars Rate 31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

Machinery 15 2.00 1.87 1.59 1.35 1.15

Less Depreciation 0.13 0.28 0.24 0.20 0.17

Written down value 1.87 1.59 1.35 1.15 0.98

Computers/Laptops & Printers 15 1.0 0.94 0.80 0.68 0.58

Less Depreciation 0.063 0.14 0.12 0.10 0.086

Written down value 0.94 0.80 0.68 0.58 0.49

Racks & storage 10 0.20 0.19 0.17 0.16 0.14

Less Depreciation 0.0083 0.019 0.017 0.016 0.014

Written down value 0.19 0.17 0.16 0.14 0.13

Total less depreciation 0.20 0.44 0.38 0.32 0.27

Total written down value 7.30 6.86 6.48 6.16 5.89

 Assumption
The entire projection is based on the assumption that the sales for 5 years will be

All figures are in lakhs

31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

16.55 37.01 39.57 42.14 44.72

Sales : 4724700

Also the total expense for the firm during the projection years will be as follows

31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

10.10 26.16 28.10 30.07 32.07

• The depreciation is as follows

Particulars Value

Machinery 15%

Computers/Laptops & Printers 15%

Racks & storage 10%

• Cost of the land or building is based on the basis of current rate

• Cost of machinery is based on the quotation submitted by the supplier

• Value of raw materials & utility charges as per the current market conditions

• All other assumptions are calculated based on the basis of experience of the promoter and deep study
on the working of similar model

This report is created using www.finline.in . Finline have bears no financial responsibility on or behalf of any of
the authorized signatories
 Conclusion
The project as a whole describes the scope and viability of the Manufacturing industry and mainly of the
financial, technical and its market potential.The project guarantee sufficient fund to repay the loan and also
give a good return on capital investment. When analyzing the social- economic impact, this project is able to
generate an employment of 5 and above. It will cater the demand of Manufacturing and thus helps the other
business entities to increase the production and service which provide service and support to this industry.
Thus more cyclic employment and livelihood generation. So in all ways, we can conclude the project is
technically and socially viable and commercially sound too.

When we take a close look at the Debt Service Coverage Ratio (DSCR), the avg: DSCR is 5.40 : 1, which is at a
higher proposition and proposes a stable venture

The Profit and Loss shows a steady growth in profit throughout the year and the firm has a higher Current
Ratio (average) of 5.76, this shows the current assets and current liabilities are managed & balanced well.
 Break Even Point
All figures are in lakhs
31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

Total fixed cost 0.98 2.52 2.70 2.88 3.06

Total variable cost 9.12 27.39 29.34 31.32 33.35

BEP in % of installed capacity % 26.56 % 44.34 % 44.31 % 44.52 % 44.97 %

BEP in sales of Rupees 3,39,851.49 14,66,570.02 15,70,054.15 16,82,795.37 18,05,865.59