PROJECT REPORT

on

CORRUGATED KRAFT PAPER BOXES

Submitted by:

__________________________________

__________________________________

__________________________________

CONTENTS
________________________________________________________ CHAPTER NOS. PARTICULARS SHEET NOS. ________________________________________________________ I. Project Summary II. III. IV. V. VI. VII. Introduction About the Promoter Product Description Market Potential Manufacturing Process & Process Flow Chart

Economics of the Project Covering:Basis & Presumptions Land Building & Structures Plant, Machinery & Equipment Misc. Fixed Assets Total Cost of the Project Means of Finance Term Loan, its repayment & interest schedule Working capital & margin money Staff & Labor requirements and their bill Raw Materials & Consumables Power/water Depreciation Repairs & Maintenance Insurance Sales Expenses Projections of Performance & Profitability Break-even-point Analysis Cash flow Statement Projected Balance Sheet Debt-service Coverage Ratio ________________________________________________________

________________________________________________________ APPENDIX PARTICULARS SHEET NOS. ________________________________________________________

I.

Sources of Plant & Machinery Availability

II.

Sources of Raw Material Availability

III.

Existing Manufacturing Units

IV.

Important Addresses

________________________________________________________

CHAPTER - II PROJECT SUMMARY

1. Name of the Applicant 2. Fathers/Husbands Name 3. Constitution 4. Address 5. Size of the Plot 6. Location 7. Covered Space 8. Proposed Project to be set-up 9. Type of Industry 10. Major Raw Materials 11. Employment Potential 12. Power Load 13. Total Project Cost:a. Cost of Land b. Building & Structures c. Machinery & Equipments d. Misc. Fixed Assets e. Preliminary & Preoperative expenses f. Contingencies/Priceescalation g. Margin Money for Working Capital Total : : : : : : : : : : : : : : : : : : 500 sq.mts. Corrugated Kraft Paper Boxes Paper Packaging Kraft Paper, Gum, Wire, Ink etc. 23 Persons 40 KW 5.50 18.75 25.27 4.85 4.41 1.10 1000 sq.mts.

: 10.59 __________________ : Rs. 70.46 Lakhs __________________

14.

Means of Financing of the Project:-

a)

Term Loan from Bank/State Financial Corporation Promoters Contribution including Unsecured Loans from friends/relatives

: :

40.00 30.46

b)

__________________ Total Promoters Share to Project Cost Debt-service Ratio : Rs. 70.46 Lakhs __________________ : : 43.23% 1.31 : 1

15.

Annual Profitability (at (60% efficiency, 1st year):-

a) b) c) d) e)

Annual Sales Revenues Net Profit Percentage Profit on Sales Annual Return on Investment Average Break-even-point

: : : : :

Rs.175.50 Lakhs Rs. 10.47 Lakhs 5.96% 14.85% 49.17%

CHAPTER - II

INTRODUCTION

Corrugated Kraft Paper Board Box is the most popular shipping container, now-a-days. The boxes find their number of applications in the packaging of: Packaged Drinking Water Refined Vegetable Oils Confectionery Products Tobacco & its products, canned & bottled goods, food products, lamps, electrical appliances, engineering goods, Chemicals & drugs, Stationery Items glasswares etc.

CHAPTER III

ABOUT THE PROMOTER

The promoter of the proposed unit is highly educated, financially sound and possess rich experience in the same field. After thorough study of the market demand of the project, he is keen to set up a manufacturing unit for the same.

BIODAT A
Name Fathers Name Date of Birth/Age Address, residence : : : :

Qualification Experience Financial Background

: : :

CHAPTER - IV

PRODUCT DESCRIPTION & APPLICATIONS

Introduction Corrugated Kraft Paper Board Box, technically called Corrugated

Fibre Board Box is the most popular shipping container, now-a-days. The box is manufactured from corrugated board which consists of 3 or more layers of kraft paper. The middle fluted layer is pasted with two flat parallel sheets of paper. The boxes find their number of applications in the packaging of chemicals & drugs, tobacco, engineering goods, canned & bottled goods, food products, lamps, electrical appliances, glasswares etc. Packaging plays a very important role in the country's economy. Till recently only the western world, more particularily the developed and in countries cared about proper packaging. However, now even developing countries like India have changed their outlook towards packaging packaging. In fact, today, packaging is as important as the contents. Corrugated boards were first produced in India in early fifties. Since then the Corrugated applications. production boxes of Corrugated boards has increased steadily. have replaced wooden boxes & crates in many 80% of all shipments in the world are being the last few years increasing stress has been laid on improved and proper

Today, about

made in fibre board boxes. In India, about 60% of the packaging is being done with corrugated fibre board boxes.

Corrugated Board:Corrugated fibre board consists of a flat layer of paper sheet (liner) glued on one or both sides of a corrugated paper (medium). The corrugated board is made by passing two layers of paper (usually kraft)

through corrugating machine. One layer of paper becomes corrugated after being passed thro' the heated rolls and other is brought into contact with it after the former having glued at tips. The corrugating 'medium' is generally made from a 0.009" thick (9 caliper) or 0.23 mm. The glue frequently used is starch or silicate of soda adhesive. When only one liner is used, the product is known as "Single face" or "two ply" board. This board is flexible in one direction. When the corrugated medium is combined on both sides with flat sheets, it is known as double faced or "3-ply board". Advantages of Corrugated Fibre Board Boxes :Corrugated fibreboard boxes have replaced the wooden and tin containers due to their several advantages for safe transportation of the goods. These are discussed here under : 1) 2) Light in weight (freight advantage) Cellular structure with high compressive strength, resiliency & shock

resistance. Assured safety to delicate articles. 3) Can be stored conveniently in folded condition when not in use,

thus saving storage space. 4) Can be attractively printed, thus advertising

advantage. 5) By lining, lamination or coating, they can be made water resistant

and resistant to other adverse conditions. 6) 7) 8) 9) Easy to fabricate. Contents packed in these boxes remain dust free. Available through out the year. .pa Expedites production due to one line conveyor packing.

10) Re-usable 11) No strapping necessary 12) Desired in export market 13) Eliminated dependency on natural wood. Applications:Corrugated chemicals, electrical potteries, drugs, fibre board boxes are being goods. tobacco, engineering confectionary, glasswares and used for the for packing of packing of

industrial as well as consumer

They are goods, textiles,

used

canned and bottled food, fruits, vegetables,

goods (such as Whisky, Beer, Soda, Drinking Water, Ketchups etc.), appliances, footwear,

other fragile items, medical

instruments, photographic equipments and a number of other products.

The use-pattern of corrugated board containers is approximately as follows :(%) Chemicals & Drugs Tobacco Engineering Goods Canned & bottles goods Light Engg.Products & Lamps Electrical products Confectionery Textiles Other (including fruits, potteries etc.) 20 20 10 10 8 5 3 2 22 _____________ 100 _____________

Some of the products where corrugated fibreboard boxes find extensive application are:1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Pharmaceuticals. Glassware, crockery ware Soaps & Cosmetics Biscuits Hosiery & ready made garments Electronic products Breweries Cigarettes Footwears Toys Milk products & other food items Tea & Coffee Automobile components Rubber & rubber products Engineering items and consumer durable refrigerators, TVs, Air Coolers, fans etc. Stationary items Match boxes Frozen fish Apple, cherry, grapes etc. Cashew nut industry

like

It would not be an exaggeration if one states that practically every product at some or the other stage, has to be packed in corrugated paper board or box. Usually, at the manufacturer/wholesalers level the individual units of a particular item are packed together in a carton/corrugated box for the sake of convenience in handling/transporting.

The strength or weakness of corrugated paperboard depends upon the member of ply, which vary from 2 ply to 9 ply. The higher the member of the ply, the thicker and stronger will be the board. However, the strength required will depend upon the purpose for which the corrugated board/box is to be used. For example, to pack vials and tubes, a thinner quality or lesser ply corrugated board would serve the purpose, while packing of a television set or an air-conditioner will require a very sturdy corrugated box with maximum ply. Similarly for electric lamps, a 2 ply flexible board is used.

The unit shall manufacture corrugated boxes of varying plys to suit various needs.

Indian Standard Specifications

Indian Standard Specifications:-

Bureau of Indian Standards (earlier known as Indian Standard Institute, ISI) has published following Indian Standards on the industry:1. 2771 Part-1 Part-2 2. 3. 10066 11844 Fibre-board boxes Corrugated Fibre Board Boxes Solid fibre board boxes Corrugated fibre board boxes for packing of Cigarettes. Corrugated fibre board boxes for transport packaging of apples. 4. 7151 Corrugated fibre board boxes of Internal dimensions 890 x 380 x 560 mm for para dropping of supplies 5. 7063 Part-1 Part-2 Part-3 Part-4 Methods of Test for Corrugated fibreboard Thickness of Board Edgewise crush resistance of board Water resistance of glue bond by immersion Determination of substance of the component papers after separation. However, for complete up-to-date information, it is advised to contact Bureau of Indian Standards, Manak Bhawan, 9-Bahadur Shah Zafar Marg, New Delhi-110002.

CHAPTER - V

MARKET POTENTIAL

The paper and paperboard industry has grown over the years to meet the ever-increasing need for paper as well as paperboard. This industry is more than a century old.

Specific statistics are not available in respect of production in the small-scale sector. However, an important parameter for gauging the market potential for the products envisaged in this scheme is to ascertain the overall growth in the economy in general with particular reference to the growth of user industries that require corrugated board/boxes.

A look at the user industries indicates that they have generally grown over the years and as per indications will continue to growth in the coming years as well.

Consequently, the demand for corrugated paper board/boxes will also continue to be buoyant. A peculiar feature of this industry is that on the one hand there are several units in the large as well as small-scale sectors, which are sick and unable to function properly, while on the other-hand several units are flushed with orders and are working to capacity.

An important factor for successful undertaking of corrugated paper board/boxes is the capacity to procure orders from bulk users on contract basis. Only large and regular orders will ensure stability to the unit.

Through the market potential for these products can be considered to the fairly good, much will depend upon the by an individual entrepreneur. marketing strategy adopted

CHAPTER - VI

MANUFACTURING PROCESS

The process of manufacture of corrugated fibreboard & boxes is quite simple. The unit mainly comprises of two sections viz. corrugated board making and box making section.

MANUFACTURE OF CORRUGATED BOARD Corrugated board is made of a corrugated paper sheet of paper glued to the facings of flat-paper, usually kraft. A corrugating machine is employed for the corrugation of flat sheet and preparation of corrugated flexible 2 ply board. The machine is called as single-face corrugating machine. One layer of paper becomes corrugated after passing through the heated fluted rolls and the other is brought in contact with the former having been glued at the tips. These two sheets get pasted together and are wound in rolls. resulting roll is known as single face or 2-ply corrugated board. By cutting this roll with board cutter machine; glueing the corrugated side on pasting machine & then placing 3rd ply of paper over it, double face or 3-ply corrugated board is produced. Similarly, board to board can be pasted to form thicker boards i.e. 5-ply, 7-ply and 9-ply boards. The

MANUFACTURE OF BOXES

The corrugated board produced as above is dried (for drying of glue) and may now be processed further to produce-corrugated boxes.

The size of a box is always given in terms of the inside dimensions, with the longer dimension (length) of the opening width and depth. The most economical has given first followed by box for a given cubic contents

the proportions of 2:1:2 (L:W:D). However, other proportions may also

be used. For manufacturing boxes of any particular dimensions, it is first decided as to how the blanks for the boxes should be cut to minimise the wastage. Calculation of Weight of a Box:Weight of the box is equal to area of the sheet multiplied by

weight/cu.m. the sheet. Area of sheet (i) Length of the sheet required, 'a' = 2L + 2W + 2 inches. (ii) Width of the sheet required 'b' =W+H Where L = Length of the box W = Width of the box H = Height of the box 2" is the stitching margin. Weight/sq.m. of sheets :

It will depend upon the number of plies & g.s.m. (grams/sq.m.) of paper. For the corrugating media, on an average 45% extra material is consumed compared with the plain one depending upon the size of flute. So, weight per sgm. of a 3 ply board would be as follows :gsm of top liner +(1.45 x gsm of media) + gsm bottom liner. Fabrication of Boxes: The various steps involved in the fabrication of corrugated fibre board boxes are: Slitting & creasing; slotting; flap or corner cutting and stitching or gluing. simultaneously carried over a rotary cutting & creasing machine. The trimmed and creased sheet is slotted and flap out on an eccentric slotter. Finally, it is either stitched using stiching machine or glued/taped manually. The boxes are shiped in the form of flat tube which is set up and closed by the packer.

Printing:

There are different methods of printing Some of the small scale manufacturers

the corrugated boxes. the boxes after

are printing

fabrication, by the technique of screen printing. However, printing can be done in a printer slotter machine. In this machine, the blanks are printed using soft rubber dies and the body score or vertical introduced in the board. score and slots are

Printing can also be performed on the paper sheet, before corrugated sheet/board. The layer of paper which the box, is printed on flexographic machine.

making

will come outside of

PROCESS FLOW CHART

Corrugated Sheets Corrugating Plant

| | V Printing | | V Printed Paper Sheets | | V Cutting Board Cutter | | V Glueing (at tips) Sheet Pasting Machine | | V 3-ply board | | V Cutting Cutting & Creasing Machine | | V Creasing | | V Slotting Slotter | | V Stitching Stitching Machine | | V Finished Product

Economics of the Project

CHAPTER - V

ECONOMICS OF THE PROJECT a. Basis & Presumptions:No. of working days/year No. of shifts/day No. of working hours/shift : : : 300 Single 8

b.

Product(s) Mix,Capacity & Its Utilisation:Finished Product(s) Average Selling Price Annual Installed Capacity Capacity Utilisation First year of operation Second year of operation Third year of operation Forth year of operation Fifth year onwards years of operation : : : : : : : : : 60 65 70 75 80 % % % % % Corrugated Kraft Paper Boxes Rs.32,500 per ton 900 tons

c.

Land:-

Industrial Plot

a. Plot Size b. Location c. Rate of Land d. Cost of Plot

: : : :

1000 sq.mts

Rs. 500/- per sq.mt Rs. Rs. 5.00 Lakhs 0.50 Lakh

e. Registration etc. Exps. :

________________ Total Rs. 5.50 Lakhs ________________

d.

Cost of Building & Structure:-

a. b. c.

Works Stores Office Total Cost of construction

: : : : : :

300 sq.mts 150 sq.mts 50 sq.mts 500 sq.mts Rs. 3500.00 per sq.mt. Rs. 17.50 Lakhs

d. Misc. Civil Works like Boundry wall, Security Cabins, Parking Sheds, Inner-Outer Approach Roads etc.: Rs. 1.25 Lakhs ________________ Total Rs. 18.75 Lakhs ________________

e.

Plant & Machinery:-

Following plant, machinery and equipment are required for the proposed project:_____________________________________________________________ S.No. Description Qty. Rate Amount (Nos.) (Rs.Lakhs) _____________________________________________________________ A. 1. 2. 3. 4. B. 1. 2. 3. 4. 5. 6. 7. C. 1. 2. D. 1. 2. 3. 4. Corrugating Unit Single Face Corrugating M/c 1 Slitting Attachment with cutter1 Board Cutter, 62 x 62 1 Sheet Pasting Machine 1 Box Making Unit 4-Bar Rotary Cutting & Creasing M/c, 95 1 Eccentric Slotter, 42 1 Partition Slotter, 42 1 Stitching Machine, 30 1 Stitching Machine, 36 1 Vertical Bending Machine, 721 Single Slotting Machine, 12 1 Printing Unit Multi-colour Offset Printing M/c1 Screen Printing Equipment 1 Testing Equipment Brusting Strength Factor Tester1 Graqmmage Tester 1 Compression Strength Tester 1 Puncture Resistance Strength M/c1 0.30 0.05 1.50 0.30 0.30 0.05 1.50 0.30 10.00 0.50 10.00 0.50 1.95 1.95 0.45 0.25 0.30 1.40 0.15 1.95 1.95 0.45 0.25 0.30 1.40 0.15 3.00 0.18 0.26 0.44 3.00 0.18 0.26 0.44

_____________________________________________________________ Rs..22.97 Lakhs Cost of installation, erection, commissioning Taxes, Freight Insurance etc. 10% Rs.. 2.30 Lakhs _____________________________________________________________ Total Rs. 25.27 Lakhs _____________________________________________________________

f.

Misc. Fixed Assets:-

Additionally, following misc. fixed assets are required for the proposed project:(Rs.Lakhs) a. b. c. d. e. f. g. h. Standby Gen Set, 40 KVA Electrification Expenses and Electrical Equipments Weighing Machine Maintenance Tools & Equipment Office Furniture & Equipment : : : : : 2.25 0.75 0.20 0.05 0.75 0.50 0.10 0.25

Fire Fighting & Other Safety Equipments : Delivery Rickshaw Misc. : :

__________________ Total Rs. 4.85 Lakhs __________________

g.

Total Cost of the Project :: : : : : : : 5.50 18.75 25.27 4.85 4.41 1.10 10.59

a. Cost of Land b. Building & Structures c. Machinery & Equipments d. Misc.Fixed Assets e. Preliminary & Preoperative expenses f. Contingencies/Priceescalation g. Margin Money for Working Capital

__________________ Total : Rs. 70.46 Lakhs __________________

h.

Means of Financing of the Project:It is proposed to finance the project as follows:-

a)

Term Loan from Bank/State Financial Corporation Promoters Contribution including Unsecured Loans from friends/relatives

: :

40.00 30.46

b)

__________________ Total Promoters Share to Project Cost Debt-service Ratio : Rs. 70.46 Lakhs __________________ : 43.23% : 1.31 : 1

i.

TERM LOAN

: : Rs.Lakhs Term Loan 75 % 75 % 75 % 75 % 75 % Rs. Rs. 4.13 14.06 18.95 3.64 0.82 41.60 Lakhs 40.00 Lakhs

S.No. 1. 2. 3. 4. 5.

Description Land Building & Structure Machinery & Equipment Misc. Fixed Assets Contingencies/Price Esc. Term Loan Eligibility Term Loan to be applied for

Value 5.50 18.75 25.27 4.85 1.10 55.47

j.

TERM LOAN, ITS REPAYMENT AND INTEREST SCHEDULE : Term Loan Repayment Period Moratorium Perod Annual Interest Rate Year/ Month I Year Opening Balance 4000000 4000000 4000000 4000000 4000000 4000000 4000000 4000000 4000000 4000000 4000000 4000000 4000000 3916667 3833333 3750000 3666667 3583333 3500000 3416667 3333333 3250000 3166667 3083333 : : : : Rs.40.00 Lakhs 4 12 Years months

10.50 % p.a. Closing Balance 4000000 4000000 4000000 4000000 4000000 4000000 4000000 4000000 4000000 4000000 4000000 4000000 0 3916667 3833333 3750000 3666667 3583333 3500000 3416667 3333333 3250000 3166667 3083333 3000000 Interest 35000 35000 35000 35000 35000 35000 35000 35000 35000 35000 35000 35000 420000 34635 33906 33177 32448 31719 30990 30260 29531 28802 28073 27344 26615

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

Installment 0 0 0 0 0 0 0 0 0 0 0 0 83333 83333 83333 83333 83333 83333 83333 83333 83333 83333 83333 83333

II Yr.

1000000

367500

j..

TERM LOAN, ITS REPAYMENT AND INTEREST SCHEDULE (Contd)

Year/ Month III Yr.

1 2 3 4 5 6 7 8 9 10 11 12

Opening Balance 3000000 2916667 2833333 2750000 2666667 2583333 2500000 2416667 2333333 2250000 2166667 2083333

Installment 83333 83333 83333 83333 83333 83333 83333 83333 83333 83333 83333 83333

1000000

Closing Balance 2916667 2833333 2750000 2666667 2583333 2500000 2416667 2333333 2250000 2166667 2083333 2000000

Interest 25885 25156 24427 23698 22969 22240 21510 20781 20052 19323 18594 17865

262500

IV Yr.

1 2 3 4 5 6 7 8 9 10 11 12

2000000 1916667 1833333 1750000 1666667 1583333 1500000 1416667 1333333 1250000 1166667 1083333

83333 83333 83333 83333 83333 83333 83333 83333 83333 83333 83333 83333

1000000

1916667 1833333 1750000 1666667 1583333 1500000 1416667 1333333 1250000 1166667 1083333 1000000

17135 16406 15677 14948 14219 13490 12760 12031 11302 10573 9844 9115

157500

j.

TERM LOAN, ITS REPAYMENT AND INTEREST SCHEDULE (Contd)

Year/ Month V Yr.

1 2 3 4 5 6 7 8 9 10 11 12

Opening Balance 1000000 916667 833333 750000 666667 583333 500000 416667 333333 250000 166667 83333

Installment 83333 83333 83333 83333 83333 83333 83333 83333 83333 83333 83333 83333 1000000

Closing Balance 916667 833333 750000 666667 583333 500000 416667 333333 250000 166667 83333 0

Interest 8385 7656 6927 6198 5469 4740 4010 3281 2552 1823 1094 365 52500

k.

WORKING CAPITAL REQUIREMENTS

Ist Year a b. c. d. e. Raw Materials Work in progress

60 15 7 10 45 30

Percent Capacity Utilisation days days days days days Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. 6.58 3.21 4.85 26.33 1.38 42.34 42.34 31.76 10.59 Lakhs Lakhs Lakhs Lakhs Lakhs Lakhs Lakhs Lakhs Lakhs

Finished Goods in stock Accounts Receivables Misc. Expenses Total Working Capital Required Bank Finance Margin Money

k. WORKING CAPITAL REQUIREMENTS Contd.

Ist Year a b. c. d. e. Raw Materials Work in progress

65 15 7 10 45 30

Percent Capacity Utilisation days days days days days Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. 7.13 3.48 4.85 28.52 1.60 45.58 45.58 34.18 11.39 Lakhs Lakhs Lakhs Lakhs Lakhs Lakhs Lakhs Lakhs Lakhs

Finished Goods in stock Accounts Receivables Misc. Expenses Total Working Capital Required Bank Finance Margin Money

k. WORKING CAPITAL REQUIREMENTS Contd.

Ist Year a b. c. d. e. Raw Materials Work in progress

70 15 7 10 45 30

Percent Capacity Utilisation days days days days days Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. 7.68 3.75 5.29 30.71 1.75 49.18 49.18 36.89 12.30 Lakhs Lakhs Lakhs Lakhs Lakhs Lakhs Lakhs Lakhs Lakhs

Finished Goods in stock Accounts Receivables Misc. Expenses Total Working Capital Required Bank Finance Margin Money

k. WORKING CAPITAL REQUIREMENTS Contd.

Ist Year a b. c. d. e. Raw Materials Work in progress

75 15 7 10 45 30

Percent Capacity Utilisation days days days days days Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. 8.23 4.03 5.70 32.91 1.90 52.76 5276 39.57 13.19 Lakhs Lakhs Lakhs Lakhs Lakhs Lakhs Lakhs Lakhs Lakhs

Finished Goods in stock Accounts Receivables Misc. Expenses Total Working Capital Required Bank Finance Margin Money

l.

STAFF & LABOUR REQUIREMENTS AND ANNUAL SALARIES/WAGES BILL : S.No. Designation a. Office Staff 1 2 3 Accountant Sales & Marketing Peon/Watchman 1 2 1 4 b. Supervisory 1 Supervisor 1 10000 1.20 0.90 Nos. Rate, Rs.p.m. 10000 7500 5500 Annual Bill Rs.Lakhs 1.20 1.80 0.66 2.34

c. Factory 1 2 3 Skilled Workers Semi-skilled Workers Unskilled Labour 3 9 6 18 25% benefits 23 Rs. 7500 6500 5500 1.80 4.32 2.52 11.88 3.92 15.80 Lakhs 8.64

m.

ANNUAL COST OF RAW MATERIALS, CONSUMABLES & PACKAGING MATERIALS (at 100% efficiency) Following Raw Materials, Consumables & Packaging materials are required for the proposed project:

S.No. 1. 2 3 4 5 6 7 8

Description Kraft Paper (various grammage) Printing Ink Stitching Wire Binding Cloth Adhesive Tape Adhesives Misc.Consumable Stores Packing Materials } } } } } } } }

Amount (Rs.Lakhs)

Cost of raw materials, consumables and packing materials is assumed at 75.00 % sales revenues, that works out to Total Rs. 219.38 Lakhs

n.

ANNUAL COST OF UTILITIES (POWER & WATER) (at 100% efficiency) a. Power Total Load Consumption 40 KW Load x 8 x 300 x 0.7 Hrs. x Days x Power Factor 67200 KWH Power Rate Total Power Bill b. Water Water @ Rs. 450 KL 8.00 Per KL Rs. 0.04 Lakh Rs. 3.06 Lakhs Rs. 4.50 KWH Rs. 3.02 Lakhs

Total Power & Water Bill

o.

DEPRECIATION CHART Building & Structure Machinery & Equipment Misc.Fixed Assets : : : Rs. Rs. Rs. 18.75 25.27 3.85 Lakhs Lakhs Lakhs

S. Description N. 1. Building & Structure Depreciation Rate

Rate

1st Year 18.75 1.88 16.88

2nd Year 16.88 1.69 15.19 21.48 3.22 18.26 4.12 0.62 3.50 5.53

3rd Year 15.19 1.52 13.67 18.26 2.74 15.52 3.50 0.53 2.98 4.78

4th Year 13.67 1.37 12.30 15.52 2.33 13.19 2.98 0.45 2.53 4.14

5th Year 12.30 1.23 11.07 13.19 1.98 11.21 2.53 0.38 2.15 3.59

10%

2.

Machinery & Equipment Depreciation Rate

15%

25.27 3.79 21.48

3.

Misc.Fixed Assets Depreciation Rate

15%

4.85 0.73 4.12 6.39

Total Depreciation

p.

REPAIRS & MAINTENANCE

S.N. 1.

Description Building & Structure Repairs/Maintenance Rate (%) Amount (Rs. Lakhs) Machinery & Equipment Repairs/Maintenance Rate (%) Amount (Rs. Lakhs) Misc. Fixed Assets Repairs/Maintenance Rate (%) Amount (Rs. Lakhs) Total

1st Year 18.75 0.50 0.09 25.27 0.50 0.13 4.85 0.50 0.02 0.24

2nd Year 16.88 1.00 0.17 21.48 1.00 0.21 4.12 1.00 0.04 0.42

3rd Year 15.19 1.50 0.23 18.26 1.50 0.27 3.50 1.50 0.05 0.55

4th Year 13.67 2.00 0.27 15.52 2.00 0.31 2.98 2.00 0.06 0.64

5th Year 12.30 2.50 0.31 13.19 2.50 0.33 2.53 2.50 0.06 0.70

2.

3.

q.

INSURANCE The fixed assets of the project will be insured for all types of risks. Annual insurance charges payable shall be as under:-

S.N. 1. 2. 3.

Description Building & Structure Machinery & Equipment Misc. Fixed Assets Total Insurance Charges : Rate (%) Amount (Rs.Lakh)

1st Year 18.75 25.27 4.85 48.87

2nd Year 16.88 21.48 4.12 42.47

3rd Year 15.19 18.26 3.50 36.95

4th Year 13.67 15.52 2.98 32.16

5th Year 12.30 13.19 2.53 29.02

1.00 0.49

1.50 0.64

2.00 0.74

2.50 0.80

3.00 0.84

r.

SALES EXPENSES Sales Expenses include brokerage, commission, discounts etc. They are assumed at 1.75 percent of sales revenues Rs.Lakhs Year 1st 2nd 3rd 4th 5th Sales 175.50 190.13 204.75 219.38 219.38 Selling Expenses 3.07 3.33 3.58 3.84 4.10

s.

PROJECTIONS OF PERFORMANCE AND PROFITABILITY STATEMENT Rs.Lakhs 1st Year Capacity Utilisation (%) A Annual Sales Revenues Value Rs. Lakh B. a. Cost of Sales Raw Materials, Consumables &Packing Materials Power/Water Salaries & Wages * Salaries Wages Repairs & Maintenance Insurance Depreciation 131.63 142.59 153.56 164.53 175.50 175.50 190.13 204.75 219.38 219.38 60 2nd Year 65 3rd Year 70 4th Year 75 5th Year 75

b. c.

1.84 4.31 6.89 0.24 0.49 6.39

1.99 4.74 8.22 0.42 0.64 5.53

2.14 5.21 8.85 0.55 0.74 4.78

2.30 5.74 9.48 0.64 0.80 4.14

2.45 6.31 10.11 0.70 0.84 3.59

d. e. f.

151.79 164.13 175.84 187.63 199.50

Cost of Sales * 10% increase every year

151.79 164.13 175.84 187.63 199.50

s.

PROJECTIONS OF PERFORMANCE AND PROFITABILITY STATEMENT Rs.Lakhs Contd. 1st 2nd 3rd 4th 5th Year Year Year Year Year Capacity Utilisation (%) C Gross Profit Selling Expenses Overheads @ Preliminary & Pre-operative Expenses w/off Financial Expenses: a. b. Interest on term loan Interest on Working Capital Loan 4.20 3.33 10.47 3.45 7.01 6.39 13.41 3.68 3.59 12.62 4.17 8.46 5.53 13.98 2.63 3.87 15.90 5.25 10.65 4.78 15.43 1.58 4.15 19.10 6.30 12.80 4.14 16.94 0.52 4.15 22.50 7.43 15.08 3.59 18.67 60 23.71 3.07 1.76 0.88 65 26.00 3.33 1.90 0.88 70 28.91 3.58 2.05 0.88 75 31.74 3.84 2.19 0.88 75 34.50 4.10 2.19 0.88

D. Profit (before taxes) E. F. Provision for Taxes 20%

Profit (after taxes) Depreciation, added back

G. Cash Accruals:

@ Telephone Bills, Postage/Courier Expenses, Travelling/Conveyance, Bank Charges/Commissions, Publicity etc. considered as 1% of Annual Sales Revenues

t.

BREAK-EVEN-EFFICIENCY ANALYSIS 1 Year Capacity Utilisation (%) A. B. a. b. c. d. e. Sales Variable Costs Raw Materials, Consumables & Packing Materials Power/Water Wages Intt.on Working Capital Loan Sales Expenses Total C. a. b. c. d. e. f. Fixed Costs Salaries Admn. Overheads Repairs & Maintenance Insurance Interest on term loan Depreciation Total D. E. Contribution Break-even-efficiency (%) Average Break-even-efficiency 4.31 1.76 0.24 0.49 4.20 6.39 28.74 28.74 60.51 4.74 1.90 0.42 0.64 3.68 5.53 16.91 30.41 55.59 5.21 2.05 0.55 0.74 2.63 4.78 15.96 32.74 48.75 49.17 5.74 2.19 0.64 0.80 1.58 4.14 15.09 35.07 43.03 6.31 2.19 0.70 0.84 0.52 3.59 14.30 37.69 37.95 131.63 142.59 153.56 164.53 175.50 1.84 6.89 3.33 3.07 1.99 8.22 3.59 3.33 2.14 8.85 3.87 3.58 2.30 9.48 4.15 3.84 2.45 10.11 4.15 4.10 60
st

2 Year 65

nd

Rs.Lakhs 3rd 4th Year Year 70 75

5th Year 75

175.50 190.13 204.75 219.38 219.38

146.76 159.72 172.01 184.30 196.31

u.

CASH FLOW STATEMENT Rs.Lakhs Const.

Period

1st Year 0.00 0.00

2nd Year 0.81 0.00

3rd Year 0.90 0.00

4th Year 0.89 0.00

5th Year 0.00 0.00

Sources of Funds Increase in Share Capital Increase in Working Capita Borrowings Profit before tax with Interest added back Preliminary Exps.w/off Depreciations

30.46 40.00

0.00

31.76

2.43

2.70

2.68

0.00

0.00 0.00 70.46 4.41

0.88 6.39 57.03 0.00

0.88 5.53 29.53 0.00

0.88 4.78 31.66 0.00

0.88 4.14 33.43 0.00

0.88 3.59 31.65 0.00

Disposition of funds Preliminary & Preoperative Expenses Increase in capital expenditure Increase in current assets Interest

55.47 0.00

0.00 42.34 4.20 50.00 10.59 7.04 17.62

0.00 3.24 3.68 21.08 17.62 8.46 26.08

0.00 3.60 2.63 21.47 26.08 10.19 36.27

0.00 3.58 1.58 21.45 36.27 11.97 48.24

0.00 0.00 0.52 17.95 48.24 13.70 61.94

59.88 0.00 10.59 10.59

C D E

Opening Balance Net Surplus Closing Baalnce

v.

PROJECTED BALANCE SHEET Rs.Lakhs Const.

Period

1st Year 30.46 7.01 37.48 40.00 31.76 0.00 1.96

2nd Year 31.27 15.47 46.74 30.00 34.18 0.00 5.32

3rd Year 32.17 23.93 56.10 20.00 36.89 0.00 11.24

4th Year 33.07 32.98 65.45 10.00 36.89 0.00 22.27

5th Year 33.07 40.84 73.90 0.00 36.89 0.00 33.05

Sources of Funds Share Capital Add:Profits Net Worth Loans Term Loan Bank Borrowings Sundry Creditors Other Current Liabilities Application of funds Fixed Assets Gross Block Depreciations Net Block Plot/Land Current Assets Inventories Sundry Debtors Preliminary Exp. Not w/off Cash & Bank Bal. Other Current Assets

30.46 0.00 30.46 40.00 0.00 0.00 0.00

70.46

111.19 116.25 124.23 134.61 143.84

49.97 0.00 49.97 5.50 0.00 0.00 4.41 10.59

70.46

49.97 6.39 43.57 5.50 14.64 26.33 3.53 17.62 0.00

49.97 5.53 38.05 5.50 15.46 28.52 2.65 26.08 0.00

49.97 4.78 33.26 5.50 16.72 30.71 1.76 36.27 0.00

49.97 4.14 29.12 5.50 17.96 32.91 0.88 48.24 0.00

49.97 3.59 25.53 5.50 17.96 32.91 0.00 61.94 0.00

0.00

111.19 116.25 124.23 134.61 143.84

v.

DEBT SERVICE COVERAGE RATIO 1 Year Profit after tax Depreciation Interest on term loan Total Coverage Loan Repayment Interest on term loan Total Loan Liability DSCR Average DSCR 10.47 6.39 4.20 21.06 0.00 4.20 4.20 5.01
st

2 Year 12.62 5.53 3.68 21.82 10.00 3.68 13.68 1.60

nd

Rs.Lakhs 3 4th Year Year

rd

5th Year 22.50 3.59 0.52 26.62 10.00 0.52 10.53 2.53

15.90 4.78 2.63 23.30 10.00 2.63 12.63 1.85 2.63

19.10 4.14 1.58 24.82 10.00 1.58 11.58 2.14

APPENDICES (Addresses)

APPENDIX - I

SOURCES OF PLANT & MACHINERY AVAILABILITY

Corrugated Kraft Paper Boxes making Machinery: Natraj Industries Plot No.65, Sector-6, Faridabad (Haryana)-121006. Tel.: 0129-2241403/404, 4001259 Fax : 0129-2243403 E-mail: sales@natrajindustries.com Website:www.natrajindustries.com Neelkanth Machinery Co. Plot No.44, Sector-4 Industrial Area Faridabad-121 004 Tel.: 0129-2242516, 2241580 Fax : 0129-2243069 E-mail: info@neelkanthmachinery.com Website:www.neelkanthmachinery.com Sidhartha Machinery Co. 406, Usha Kiran Building Commercial Complex Azadpur, Delhi-110033 Tel.: 65976383 Cell : 9811755369 E-mail: sales@sidharthamachinery.com Website:www. sidharthamachinery.com Nagpal Packaging Machinery Pvt. Ltd. B-7, Sector-59, Phase-II 23rd Milestone, Mathura Road Ballabhgarh, Faridabad-121 064 Tel.: 0129-2307700, 230 7800, 4067600 Fax : 0129-4067500 Cell.: 93122 73576 Website:www.nagpalmachinery.com

Natraj Machinery P.Ltd. Plot No.66, Sector-27C, Faridabad (Haryana)-121003. Tel.: 0129-2276060/2093 Fax: 0129-2274471 E-mail: info@natrajmachinery.com Website:www.natrajmachinery.com

Micro Mechanical Works, B.Kumar Compound, Lal Bahadur Shastri Marg, Vikhroli, Mumbai - 400083.

Perfect Paper Machines, 34, Phase-II, Scheme-II, Okhla Industrial Area, New Delhi - 110020.

Paper Board Machinery Company, Plot No.115, Part - I, DLF Industrial Area, Faridabad - 121003. (Haryana). G.K.Hydraulic & Engineering Works 21/4, G.K. Estate, M Road, Rishi Nagar, Mathura Road, Ballabhgarh, Distt.Faridabad. (Haryana) Cell.: 93137-42381 Tel.: 2241702/2246583 Fax: 2246023 Printpack Engineers, 20, Gujrat Vihar, Vikas Marg, New Delhi - 110002.

Sheth Brothers, F-1/16, Ansari Road, Darya Ganj, New Delhi - 110002. Tel.:3272753 Micro Machinery Co. Pvt.Ltd., Lake Road, Bhandup, Mumbai - 400078. Authorised Distributors :R.V.Agencies, 29/23, Shakti Nagar, Delhi - 110007. Phone - 7129099 Micro Mechanical Industries Pvt.Ltd., Fitwell House, Lal Bahadur Shastri Marg, Vikhroli, Mumbai - 400083. GRAM : 'MICROSHER' Authorised Distributor :Shah Machinery Sales Corpn., 233, 32-A Cross, II Main Road, Opp. Holy Mother School, Jayanagar VII Block, Bangalore - 560081. Rosy Mechanical Works, Plot No.A-15, Shahzada Bagh Extension, Dayabasti, Old Rohtak Road, Delhi - 110035. Tel.: 2541 7686 Samrat Rolwel India, 14-B, 8771, Shidi Pura, Karol Bagh, New Delhi - 110005. Surjeet Mechanical Works, 106, Shivpuri, Near Chander Nagar. Delhi - 110051.

Surjeet Engineering Company B-138, Sector-63, Noida (U.P.) Tel.: 0120-4317391/92 Mobile: 98110 13324 E-mail: www.sur_engg@sify.com www.surjeetengineering.net www.surjeetengineering.in Modern Engg. Company Plot No. 44, Sector-4 Faridabad (Haryana) Tel.: 0129-242516 Fax : 243 059 Sond Engineering Works, 442/8, G.T.Road, P.O.Golden Temple, Amritsar - 110051. (Punjab). Sadana Brothers, 254, East Mohan Nagar, Amritsar - 143001. Premier Engineering Works, 22, Gurdwara Darshan Singh Pheruman, Miller Ganj, G.T.Road, Ludhiana (Punjab). FEC Machines Pvt.Ltd., Mehta Road, Maqboolpura, Amritsar (Punjab). Shree Karishna Engineering Works, Begampura, Kinkhabwala Wadi, Behind Surat Cotton Mills, Surat - 395 003.

Mahajan Machinery Works 27/5/3 F-1, Church Road Jwala Nagar, Shahdara Delhi-110032 Tel.: 2415355, 2246670 Graduate Paper Board Machinery Company Plot No. 115, DLF Industrial Area Faridabad-121 003 Tel.: 0129-275394 Offset Printing Machine: Bombay Offset Printers, Computer Forms Machinery Division, Post Box 6591, Worli, Mumbai - 400018.

Indo European Machinery Co.Pvt.Ltd., Sambava Chamber, Sir P.M.Road, Fort, Mumbai - 400001. Delhi Office :Kuncha Ustad Dagh, Chandni Chowk, Delhi - 110006.

Alois Gutenberg Machine Pvt.Ltd., Post Box No.457, Wagle Post Office, Thane - 400604. (Maharashtra).

Raghubeer Machinery Pvt.Ltd., Gurgaon - 122015. (Haryana).

Bandhu Technical Services, 8-B, Bahadur Shah Zafar Marg, New Delhi - 110002.

Multitech Aids (P) Ltd., 200, Sector - 24, Faridabad - 121005. (Haryana).

APPENDIX - II

SOURCES OF RAW MATERIAL AVAILABILITY

1. Kraft Paper:Coastal Papers Ltd. Industrial Development Area Madhavareyudupalem-533 126 Near Kadiam (R.S.) Kadiam Mandalam East Godavari Distt. Andhra Pradesh Tel.: 5348, 5423

Cauvery Papers Ltd. Sathyagala, Kollegal Taluk Mysore District - 571 498. Karnataka. Tel.: 7241/7231

B.G. Shirke Construction Technology Ltd. (Shirke Paper Division) Survey No.483 Shirwal, Tal.Khandala Distt. Satara - 412801 Maharashtra. Tel.: 02167-44106, 44176

Ballarpur Industried Ltd. (Unit Ashti) Tehsil Chamarsi Village : IllUR Distt. Gadchiroli - 442707 Maharashtra. Tel.: 07135-44129, -44147

The Andhra Pradesh Paper Mills Ltd. Rajahmundry - 533105 Easta Godawari District Andhra Pradesh Tel.: 0883-71831/71838 Tlx : 0474-202 (APPMIN) Fax : 0883-61764

Amravathi Shri Venkatesh Paper Mills Ltd., P.O.Udumalpeth, Madathulola, Tamilnadu.

Associated Pulp & Paper Mills Ltd., B Jadav Chambers, 2nd floor, Ashram Road, Ahmedabad - 380009.

Chemopulp Issues, A-4, Sector CX-II, Meerut Road, Ghaziabad (U.P.)

Sirpur Paper, Sirpur, Kaghaznagar.

Rohtas Industries Ltd., Dalmianagar.

India Paper Pulp Co.Ltd., 8, Clive Row, Kolkata.

Ballarpur Industries Ltd., (Shree Gopal Division), Thapar House, 124, Janpath, New Delhi. Mysore Paper Mills Ltd., Bhadravati. 2. Gum Tape:Million Tape Manufacturing Co., 2640, Hamilton Road, Kashmere Gate, Delhi - 110006.

Natraj Paper Industries, 38/46, Nagdevi Street, Mumbai - 400003. 3. Gum:Vijay Adhesives Industries, 6, Friends Colony, G.T.Road, Shahdara, Delhi - 110032.

Synthetic Glue Chemicals Ltd., D-104, Industrial Area, Bulundshaher Road, Ghaziabad (U.P.).

Corn Products Co.(India) Pvt.Ltd., Shree Niwas House, Hazarimal Somari Marg, P.O.Box No.994, Mumbai.

Synthetic Glue & Chemicals Industries, 21, Goenka Lane, Kolkata. 4. Stitching Wire: Pearls Products, Amar Hill, Saki Vihar Road, Powai, Mumbai.

Universal Wire Manufacturing Co., 61/63, Jalan Wadai, Gokhle Road, Dadar, Mumbai.

United Export Trading Co., 512, Loha Bhawan, P.O.Mello Road, Mumbai.

Standard Traders (India), 202, Himalaya House, Palton Road, Mumbai.

Saif Steel Traders, Steel House, 10/14, Janjikar Street, Mumbai - 3.

J.R.Desai & Co., 71-73, Chakla Street, Mumbai.

5.

Printing Ink:Graphichem Sales, Bhupender Bhawan, Karishma Market, Paharganj, New Delhi - 110055.

Rainbow Ink & Varnish Manufacturing Co.Pvt.Ltd., D-7, Sector - III, Noida (U.P.).

Roopson, 1274/4/C, Baidwara, Delhi - 110006.

Coats of India Limited, Transport Depot Road, Kolkata - 700088.

B.K.Ink Enterprise, C/2, 2, Ambawadi, Udyoganagar, Wadwan (Gujarat).

Beco Chemicals (P) Ltd., 25, Brabourne Road, Kolkata - 700001.

Bengal Chemicals, 6, Ganesh Chandra Avenue, Kolkata - 700013.

Colour Inks (P) Ltd., 136, Lakshimi Building, A-Mudaliar Road, Bangalore - 2.

APPENDIX - III

EXISTING MANUFACTURERS

There are numerous units engaged in the manufacture of Corrugated Kraft Paper Boxes all over the country, Some of them near Delhi are given hereunder:-

Grover Packaging Industries RZ-44B/6, Tughlakabad Extn. New Delhi-110019 Tel.: 55732877 Fax: 26069416 Cell.: 98181 83811, 9818791694

Kiran Packaging Industries Plot No.26, Sector-25 Faridabad-121 004 (Haryana) Cell.: 9811228654 Krishna Packaging 161-DSIDC Sheds Okhla Industrial Area, Phase-I New Delhi-110020 Tel.: 26811438, 26371034, 55635217 Cell.: 9871606227 (Mr.Vijay Grover)

Kwality Packing Products Bisokhar Road Modi Nagar-201 201 (U.P.) Tel.: 02132- 233028

K.S. Enterprises Unit-1:D-183, Sector-63, Noida Tel.: 0120-95120-2400077 Fax : 0120-95120-5542187 Mobile: 98110 74833 (Mr.Arvinder Singh) E-mail: enterprise_ks@yahoo.com Unit-2: 330-Chattarpur, New Delhi-110030

Negi Packers D-230, Sector-10 Noida-201 301, Distt.G.B.Nagar (U.P.) Cell.98100 50344 Tel.: 95120-2537993. Pack (India) Industries 31-DSIDC Shed, Scheme-II Okhla Industrial Area New Delhi-110020

Paramount Box Manufacturers C-57/1, Okhla Industrial Area Phase-II, New Delhi-110020 Tel.: 26384215, 55601029, 26385688, 26388132 Cell.: 98102-62423

Suraj Packaging Company 39-Channamal Park Rohtak Road New Delhi-110026 Tel.: 28314650, 28312752 Cell.: 9311396900, 9811396900

APPENDIX - IV

IMPORTANT ADDRESSES

Indian Institute of Packaging, E-2, MIDC Area, P.B.No.9432, Chakala, Andheri (East), Mumbai- 400093. Delhi Office :21-Functional Industrial Estate Patparganj Delhi-110092 Tel. : 2216 6703/4/5 Telefax: 2216 9612 E-mail : iipdelhi@nde.vsnl.net.in www.iip.in.com

Corrugated Box Manufacturers Association 138, Mittal Industrial Estate No.3 Andheri (East) Mumbai- 400059.

Bureau of Indian Standards Manak Bhawan 9, Bahadurshah Zafar Marg, New Delhi - 110002. Tel.: 2323-0131, -3375, -9402 Fax : 91-11-2323-4062, -9399, -9382.

Federation of Corrugated Box Manufacturers Association, 214, Mittal Industrial Estate No.3, M. Vasanji Road, Andheri (East), Mumbai - 400059.

Northern India Corrugated Box Manufacturers Association, Karampura Commercial Complex New Delhi - 110015.

Indian Agro Paper Mill Association (I.A.P.M.A.) 1006, Pragati Tower 26, Rajindra Place New Delhi-110008. Tel.: 2573 9794, 2576 8659 Fax : 2576 8639, 2575 1700

All India Small Paper Mills Association 109, Shaikh Memon Street (2nd Floor) Mumbai - 400 002. Ph. : 23427726, 23427278

Pulp and Paper Research Institute (PAPRI) Gulab Bhawan (Rear Wing) 6A, Bahadur Shah Zafar Marg New Delhi-110002.

Pulp & Paper Manufacturers Association, India Exchange, 9th floor, India Exchange Place, Kolkata - 700001.

Indian Paper Makers Associations, 6, Netaji Subhash Road, Kolkata - 700001.

Central Pulp & Paper Research Institute, P.Box No.174, Saharanpur - 247001 (Uttar Pradesh).

Indian Pulp & Paper Technical Associations. I.P T.Campus, Saharanpur - 247001 (U.P.)

Handmade Paper Institute, Pune (Maharashtra).

Paper Machinery Manufacturers Association, C/o. C.I.I., 172, Jor Bagh, New Delhi - 110003.

India Paper Mills Association, India Exchange, 4, India Exchange Place, Kolkata - 700001. INDUSTRIAL ASSOCIATIONS PHD Chamber of Commerce & Industry PHD House, Opp. Asian Games Village 4/2, Siri Institutional Area, August Kranti Marg, New Delhi-110016 Phones : +91 11 26863801-04 Fax : +91 11 26855450, 2686 3135, 2656 8392 E-mail : phdcci@phdcci.in phdcci@del2.vsnl.net.in www.phdcci.in Confederation of Indian Industry Tel.: 24682230 www.ciionline.

Federation of Indian Chambers of Commerce & Industry, FICCI Federation House Tansen Marg New Delhi-110001 Tel.: +91-11-23738760 to 70, 23765323, 23753124 Fax : +91-11-23765333, 23320714, 23721504 www.ficci.com

Associated Chambers of Commerce & Industry, ASSOCHAM 147-B, Gautam Nagar Gulmohar Enclave New Delhi-110049 Tel.:26512477-79, 41643407 26292310, 26292313 Fax : 011-26512154, 26865830, 41643476 www.assocham.org

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