PROJECT REPORT ON MANUFACTURING OF PAPERS CUP

MANUFACTURING FLOW CHAR

CUTTING BOARD INTO SIZE

PRINTING OF SIZED BOARD

ROUND SHAPING
SHAPING OF BOARD

BOTTOM CUTTING

JOINING OF BOTTOM CUTTING WITH ROUND

SHAPE BY PRESSING

FINISHING OF PRODUCTION OF CUP

PACKING OF CUP INTO PACKET

READY FOR DELIVERY

INVESTMENT DETAILS
Non recurring Expenses
1. Land & Building
a) Working Shed
b) Security / Advance & renovation etc.
2. Plant & Machinery
a) Automatic Paper Cup Forming Machine
c) Screen printing Machine
d) Paper Cutting Machine
e) Weighing Machine
f) Plastic Sealing Machine
g) Tools & implements

Rented.
Lump sum.

Rs. 20000.00

Rs. 13.50 lacs.

Rs. 1.00 lacs.
Rs. 3.25 lacs.
Rs. 0.20 lacs.
Rs. 0.05 lacs.
Rs. 0.04 lacs.
Rs. 1804000.00

3. Electrical
Installation of Electric Line and other Expenses including New
Line Deposit

4. Other Equipment & Expenses

a) Fire Fighting Equipments 3nos.
b) Furniture & Fixture
c) CGTMSE Premium for 5 years
@1.5% on Rs. 14.00 lacs
d) Misc.

Total Non - Recurring Expenses (1+2+3+4)

Rs. 50000.00

Rs. 10000.00
Rs. 10000.00
Rs. 21000.00
Rs. 41000.00
Rs. 5000.00

Rs. 1900000.00

4A

INVESTMENT DETAILS

Recurring Expenses
(On the basis of Rs. 8.75 lacs Per Pc. 150ml. Paper Cup
Per month)
A) Raw Material
1. Wall Paper 2.70 mt. @ Rs.
Rs. 205200.00
76/-kg
2. Bottom Paper 0.8 mt. @ Rs.
Rs. 54400.00
68/- Kg
3. Ink for Screen Printing
LS.
Rs. 4000.00
4. Machine oil & Grease
L.S
Rs. 1000.00
Rs. 264600.00
B) Salary & Wages
1) Skilled (Production - In Charge)
2) Unskilled (Assistant)
3) Peon Cum Security
C) Other Expenses
1. Rent
II. Electricity
III. Transport Cost
(inward &
outward)
IV. Contingency
V. Subscription
VI. Misc.

One

Rs. 6000.00

Two
One

Rs. 6000.00
Rs. 3000.00
Rs. 15000.00

Rs. 3000.00
Rs. 3000.00
Rs. 3000.00

Rs. 1000.00
Rs. 1000.00
Rs. 1000.00
Rs. 12000.00

D. Insurance charges
Including CGTMSE
Premium
Total Expenses for One Month

Rs.2000.00
Rs. 293600.00

Taking 45 Days recurring Expenses, requirement of Working Capital will be

around Rs. 440000.00

PROFITABILITY
(ON THE BASIS OF 5.5 LACS Pes. PRODUCITON PER MONTH)

By Sales
Less:
i.
ii.

iii.
iv.
v.

8.75 lacs Pes. Paper Cup

Of 150 ml. capacity @ Rs. 0.45 Per/Pc.
Production Cost
Dealer's Commission (L.S)

Rs.293600.00
Rs. 5000.00

Interest on term
Loan (on Rs. 14 lac
@ 1%)
Interest on Cash Credit Loan
(on Rs. 4.00 Lac @ 1 %)
Depreciation on Plant & Machinery
and other valued Rs. 18.00 lac
(5)1.25% per month

Rs. 14000.00

Rs. 393750.00

Rs. 4000.00

Rs.22500.00
Rs. 339100.00

Gross Generation of Fund per month before Tax

Rs. 54650.00

TECUM CAL ANALYSIS

A. Rate of Annual Return
Annual Profit X 100
Total Capital Investment

655800 X100
2340000

655800 X100
4725000

= 28.03

B. Percentage on Profit on Sales

Annual Profit X100
Annual Sales
c.

= 13.88

Break Even Point (BEP)

(Factor to be taken into consideration to determine fixed cost on
monthly basis)
Fixed Cost
i Interest
ii Depreciation
iii Rent
iv Tax, Licence fee, insurance
V 40% Salaries
vi 40% other Expenses

Fixed Cost X 100

BEP

Rs. 18000.00
Rs. 22500.00
Rs. 3000.00
Rs. 2000.00
Rs. 6000.00
Rs. 4800.00
Rs. 56300.00

56300 X 100

= 50.75
Fixed Cost + Profit

110950

ASSESSMENT OF WORKING CAPITAL REQUIREMENTS

FROM-II : OPERATING STATEMENT
Figs in lacs
SL
NO
1

3
4
5

Particulars
Gross Revenue
(i) Domestic Revenue
TOTAL
Net Revenue (1-2)
% age rise (-) or tall (-) Net Sales

Estimated
1

Projected
2

Projected
3

Projected4 Projected5

30.02
30.02
30.02
0.00

52.61
32 61
32.61
0.00

40.02
40.02
40.02
0.00

48.00
48.00
48.00
0. 00

52. 00
52.00
5200
0.00

0.00
22.80
1.50
0.40
0.36
0.16
0.13
0.71
1.75
28.11
0.00

0.00
22.90
2.00
0.60
0.36
0.18
0.17
0.65
1.49
28.35
200

0.00
29 20
2.20
0.75
0.36
0.21
0.25
0.57
1.27
34.81
2.30

000
36.00
2.30
0.80
036
0.27
0.28
0.91
1.08
42.00
250

0.00
39.00
2: 50
1.00
0 36
0.34
0.39
1.12
0.91
46.12
2.70

2.00

2.30

2.50

2.70

3.00

0.00

0.00

0.00

0.00

0.00

26.11
3.91
0.79
3.12

28.05
4.56
1.36
3.20

34.61
5.41
1.22
4.19

41.80
6.20
1.02
5. I8

45 82
6.18
0 86
5.32

Cost
(i)Rau Material Finished Materials

(a) Imported
(b) Indigenous
(ii)Wages
(iii) Dealers commission
(iv) Rent
(v) Electricity Charges
(vi) Staff salary
(vii) Other Expenses
(viii) Depreciation
(ix) SUB-TOTAL (i to viii)
(xi ) Add: Opening stock of finished
goods
(xii) Less: Closing stock of finished
goods
6 Selling. General & Administrative
Exp.
7 SUB TOTAL (5+6)
8 Operating Profit before interest (3-7)
9 Interest
10 Operating Profit after interest (8-9)

SL
NO.
11

12
13
14
15
16
17

Particulars
a. Other non- operating income :
b. Other non-operating expenses:
Prel. Exp. Written Off
c. Net Other non-operating income
expenses(a-b)
Profit / Loss before Tax (10+11c)
Provision For Taxes
Net Profit / Loss (12-13)
Dividend Paid * Provision Dividend Rate:
Retained Profit (14-15)
% of Net Profit Retained (16/14)

Estimated Projected Projected Projected Projected

1
2
3
4
5
0.00
0.00
0.00
000
0.00
0.00
0.00
0.00
0.00
0.00

0.00
3.12
0.00
3.12
0.00
3.12
100.00

0.00
3.20
1.09
2.11
0.00
2.11
100.00

0.00
4.19
1.42
2.77
0.00
2.77
100.00

0.00
5 18
1.76
3.42
0.00
3.42
100.00

0.00
5.32
1 81
3.51
0.00
3.51
100.00

30.02
26.23
3.79
1 88
1.91
14.89

32.61
26.69
5.92
1.66
4.26
9.14

40.02
33.29
6.73
1.52
5.21
9.04

48.00
40.64
7.36
1.36
6.00
8.87

52 00
44 .82
7 I8
1.30
5.88
9.42

0
0 76
0.76
0.06
0.01
0.00
0.01
0.01
0.02
0.06
0.00

0
0.70
070
0.06
0.02
0.01
0.01
0.01
0.02
0.05
0.00

0
0.73
0.73
0.05
0.02
0.01
001
0.01
0.01
0.03
0.00

0
0.75
0.75
0.05
0.02
0.01
0.01
0.01
0.02
0.02
0.00

0
0 76
0 76
005
0.02
0.01
0.01
0.01
0.02
0.02
0.00

0 01
0.10
1.05

0.02
0.10
0.96

0.01
0.10
0.98

0.01
0.11
0.99

0.01
0 10
1.00

BREAK EVEN ANALYSIS

A
B
C
D
E
F

Production Value (PV)

Variable Expenses
Contribution (A-B)
Fixed & Semi Fixed Expenses
Operating Profit ( C-D )
Break Even Sales ( D*A/C )

SVP ( SALE VALUE OF PRODUCTION ) ANALYSIS

Sales Value Of Production
1
2
3
4
5
6

7
8
9
10
11

Imported Raw Materials /SVP

Indigenous Raw Materials / SVP
Raw Materials / SVP
Hotel Maintenance / SVP
Housekeeping / SVP
Staff Salary /SVP
Washing expenses/SVP
Electricity expenses/SVP
Other Manufacturing exps / SVP
Depreciation / SVP
Selling. General & Administrative Exp. /
SVP
Interest / SVP
Operating Profit / SVP
TOTAL

FINANCIAL INDICATORS
SL
NO.
1
2
4
5
6
7
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
27
28
29
30
31
32
33
34

Particulars

Gross Revenue
Net Sales
Salary & Wages/Cost of Production
Cost Of Sales/Net Sales
Operating Cost Net Sales
Operating Profit
Net Profit
Depreciation
Cash Accruals
Interest
PBDIT
PBDIT / Interest
PBT/Net Sales
Net Profit/Net Sales
Net Profit / Gross Sales
Total Outside Liabilities
Paid Up Capital
Net worth
TNW
TOL/TNW
Net Profit / Net Worth
ROCK (PBDIT/Total Assets)
ITL/TNW
Current Assets
Current Liabilities
NWC
Current Ratio
NWC to TCA
Bank finance to TCA
Sundry Creditors to TCA
Oilier current Liabilities to TCA

Estimated
1

Projected
2

Projected
3

Projected
4

Projected
5

30.02
30.02
0.00
0.87
0.94
3.91
3.12
1.75
4.87
0. 79
5.66
7.16
0.10
0 10
0.10
10.90
4.53
4.53
4.53
2.41
0.69
0.37
1.85
5.42
2.50
2.92
2.17
1
0.68
0.09
0.09

32.61
32.61
0.01
0.86
0.87
4.56
2.11
1.49
3.60
1.36
6.05
4.45
0.10
0.06
0.06
9.50
7.14
7.14
7.14
133
0.30
0.36
0.87
8.13
3.30
4.83
2.46
1
0.72
0.04
0.04

40.02
40.02
o.o1
0 86
0.87
5.41
2.77
1.27
4.04
1.22
6.68
5. 48
0.10
0.07
0.07
8.20
9.33
9.33
9.33
0.88
0.30
0.38
0.43
10.29
/ 4.20
6.09
2.45
1
0.74
0.02
0.02

48.00
48.00
0.01
0.87
o.88
6.20
3.42
1.08
4.50
1.02
7.28
7.14
0.11
0.07
0.07
7.75
10.52
10.52
10.52
0.74
0.32
0.40
0.33
12.10
4.25
7.85
2.85
1
0.73
0.02
0.02

52.00
52.00
0.01
o.88
0.89
6.18
3.51
0.91
4.42
0.86
7.09
8.24
0.10
0.07
0.07
6.30
10.84
10.84
10.84
0.58
0.32
0.41
0 I8
11.91
4.30
7.61
2.77
1
0.73
0.03
0.03

31.58
26.17
0.15
7.89

36.16
44 16
0.19
4.72

30.82
5S.38
0.22
2.47

27.00
56X85
0.21
2.50

27. 34
58.50
0.22
2.73

LEVELS IN DAYS
a
b
c
d

Inventory
Receivables
Inventory + Receivables to Net Sales
Sundry Creditors

Financial highlights
Particulars
Estimated I Projected 2 Projected 3 Projected 4 Projected 5
Sales including all misc receipts
Raw Material Consumed
Interest
Gross Profit
Depreciation
Profit Before Taxation
Taxation
Profit After Taxation
Total Repayment
Debt Service Coverage ratio
Debt Service Coverage ratio
Gross Foxed Assets
Net Fixed Assets
Investments
Share Capital
Reserve and Surplus
Current Ratio
Tangible Net Worth
Term Loan Outstanding
Working Capital loan
Total Borrowings

30.02
22.80
0.79
3.12
1.75
3.91
3.12
11.21
8.02
143.97
11 76
10.01
4.53
1 48
4.53
117.00
117.00

32.61
22.90
1.36
154.08
1.49
4.56
29.48
3.20
44.84
2.65
122.61
10.00
8.51
7.14
1.72
7.14
121.17
121.17

40.02
29.20
1.22
168.61
1.27
5.41
33.80
4.19
44.84
2.99
131.64
8.50
7.24
9.33
1.92
9.33
87.20
87.20

48.00
36.00
1.02
182.36
1.08
6.20
37.85
5.18
44.84
3.37
140.17
7.24
6.17
10.52
2.08
10.52
49.70
49.70

,
52.00
39.50
0.86
196.12
0.91
6.18
41.92
5.32
3.83
148.95
6.14
5.23
10.84
2.22
10.84
8.31
8.31