Project Report
ON
RO WATER PLANT
Small and Medium Industries
TAKEN UP BY
Prepared by:
DISCLAIMER
The purpose and scope of this information memorandum is to
introduce the subject matter and provide a general idea and information
on the said area. All the material included in this document is based on
data/information gathered from various sources and is based on certain
assumptions. Although, due care and diligence has been taken to compile
in this document, the contained information may vary due to any change
in any of the concerned factors, and the actual results may differ
substantially from the presented information. M/S PASHUPATI INDUSTRIES
does not assume any liability for any financial or other loss resulting from
this memorandum in consequence of undertaking this activity. Therefore,
the content of this memorandum should not be relied upon for making any
decision, investment or otherwise. The prospective user of this
memorandum is encouraged to carry out his/her own due diligence and
gather any information he/she considers necessary for making an
informed decision. The content of the information memorandum does not
bind on M/S PASHUPATI INDUSTRIES in any legal or other form.
INDEX
1. INTRDUCTION .
................................................................................................ 4
2. MARKET POTENTIAL
......................................................................................................................
............4
3.BASIS AND
PRESUMPTIONS ..............................................................................................
..................... 5
4.TECHNICAL ASPECTS: PROCESSING AND BOTTLING ...
.......................................... 5
5.POLLUTION CONTROL
.....................................................................................................................
.6
6. ENERGY CONSERVATION
.....................................................................................................................
.6
7.QUALITY CONTROL STANDARDS
...................................................................................................... 6
8.FINANCIAL ANALYSIS
.....................................................................................................................
....... 8
8.1 PROJECT COST AND MEANS OF
FINANCE. ................................................................................. 8
8.2 BALANCE SHEET
........................................................................................................... 9
8.3 PROFIT AND LOSS
STATEMENT. ..................................................................................................... 10
8.4 CASH FLOW STATEMENT
................................................................................................................... 11
8.5 IMPORTANT RATIOS
.....................................................................................................................
..........12
8.6 BREAK EVEN POINT CALCULATIONS
............................................................................................ 13
8.7 CALCULATION OF FINANCE
COST................................................................................................... 14
8.8 SCHEDULE OF FIXED ASSETS
................................................................................ 16
As the name implies, the mineral water is the purified water fortified
with requisite amounts of minerals such as Barium, Iron, Manganese, etc
which can be absorbed by human body. It is either obtained from natural
resources like spring and drilled wells or it is fortified artificially by
blending and treating with mineral salts. The mineral water shall be
manufactured and packed under hygienic conditions in properly washed and
cleaned bottles in sterilized conditions
2. MARKET POTENTIAL
Unfortunately sufficient safe potable water is not available everywhere
in the country; either harmful chemical substance is found in the layers of
the earth which enter into water or it may be contaminated due to
pathogenic micro-organisms. If such water is consumed, the body suffers
from water born diseases. Due to this, it has become imperative to process
and bottle safe potable water for the mankind in prevailing conditions. The
demand for purified water becomes more during summer season.
1.
2.
3.
4.
5.
6.
Working Hours
:Number of Shift per day
:Number of working days per annum
:
Total numbers of working hours
:Working efficiency Plant
:Total period of maximum capacity
utilization
:
8
1
300
48
75%
Third year from the date of
commencement of production
As the name itself indicates that the proposed concern will purify the
available water in such a way that it may be kept 4-7 days at least as
well as it should be a hygienic. The major steps involved on the
purification process are given below:
Water
Purification
treatment
&
Jar Filling
Inspection
Packing
and
Dispatch
5. POLLUTION CONTROL
Although this unit will not affect the environment, but the entrepreneurs are
advised to obtain, No Objection Certificate from competent authority of State
Pollution Control Board. They should develop Kitchen Garden in the factory
premises to utilize waste water from the plant.
6. ENERGY CONSERVATION
Suitable measures should be adopted to use appropriate amount of fuel
and electricity. The promoters should arrange periodic auditing of electrical
consumption, as the unit will be running in three shifts. Unnecessary operation
of machines should be controlled to avoid excess consumption of electricity.
Natural ventilation in production premises may be made available to avoid use
of electric power during day hours.
PASHUPATI INDUSTRIES
PROMOTER
REGISTERED OFFICE
ADMINISTRATIVE OFFICE
LINE OF ACTIVITY
RO WATER PLANT
SECTOR
PRIVATE
CONSTITUTION
PROPRIETORSHIP
INDUSTRY
WATER PURIFICATON
8. FINANCIAL ANALYSIS
8.1 PROJECT COST AND MEANS OF FINANCE
PROJECT COST:
PREMISES
PLANT & MACHINERY
COMPUTER
WORKING CAPITAL REQUIREMENTS
AMOUNT (Rs.)
1,25,000.00
12,15,000.00
32,500.00
1,52,500.00
TOTAL
15,25,000.00
MEANS OF FINANCING
AMOUNT (Rs.)
- PROMOTERS
TERM LOAN FROM BANK
TOTAL
8,25,000.00
7,00,000.00
15,25,000.00
PROMOTOR'S CAPITAL
1ST
YEAR
2ND
YEAR
YEAR
4TH
YEAR
5TH YEAR
8,25
,000
4,32
,500
4,32
,500
4,32
,500
4,32
,500
13
,495
1,94
,580
3,10
,192
5,50
,269
10,24
,612
8,3
8,495
6,2
7,080
7,4
2,692
9,8
2,769
14,5
7,112
5,92
,725
4,71
,125
3,33
,287
1,77
,042
RD
TOTAL PROMOTOR'S
FUNDS
UNSECURED LOAN
TOTAL
14,31
,220
10,98
,205
10,7
5,979
11,5
9,811
14,5
7,112
11,64,
500
9,95
,850
8,55
,414
7,36
,883
1,68
1,40
1,18
1,00
B. USE OF FUNDS:
ADDITIONS
LESS: DEPRECIATION
13,72,
500
2,08
10
,000
,650
,436
,531
,726
11,64
,500
9,9
5,850
8,5
5,414
7,3
6,883
6,3
6,157
1,39
,220
55
,640
1,05
,000
2,70
,000
4,25
,000
1,11
,500
34
,715
1,07
,565
1,48
,928
3,95
,954
MISC. EXPENDITURE
16
,000
12
,000
14,31
,220
10,98
,205
8,000
4,000
10,7
5,979
11,5
9,811
14,5
7,111
YEAR
2ND
YEAR
3RD YEAR
4TH YEAR
5TH YEAR
REVENUE:
RECEIPTS FROM
SALES
(NO. OF JAR @ Rs. 30 PER
JAR)
10,80,
000
36,
000
13,50,
000
45,
000
16,20,
000
54,
000
21,60,
000
72,
000
32,40,
000
1,08,
000
TOTAL
10,80
,000
13,50
,000
16,20
,000
21,60
,000
32,40
,000
3,60,
360
80,
000
15,
000
1,55,
000
4,50,
450
1,20,
000
25,
000
1,70,
500
5,40,
540
1,50,
000
40,
000
1,87,
550
7,20,
720
1,80,
000
50
,000
2,06,
305
10,81,
080
2,20,
000
70
,000
2,26,
936
10,
000
2,
500
4,
500
82,
145
4,
000
5,
000
20,
000
3,
000
6,
000
67,
820
4,
000
10,
000
30,
000
3
,500
7
,200
51,
582
4
,000
10,
000
40
,000
4
,000
8
,000
33
,175
4
,000
15
,000
50
,000
4
,500
9
,000
12
,147
4
,000
20
,000
TOTAL
ST
OPERATING &
ADMINISTRATIVE
EXPENSES
RAW MATERIALS
ELECTRICITY EXPENSES
CONSUMABLE
SALARY & WAGES
RUNNING & MAINTENANCE
EXPENSES
POSTAGE & STATIONERY
TELEPHONE EXPENSES
FINANCE COST
MISC. ENPENDITURE W/OFF
LEGAL AND INSURANCE
COST
11
OPERATING PROFIT
3,6
1,495
4,7
3,230
5,95
,628
8,98
,800
15,42
,337
2,08,
000
1,68,
650
1,40,
436
1,18,
531
1,00,
726
1,5
3,495
3,0
4,580
4,55
,192
7,80
,269
14,41
,612
15,
000
20,
000
80
,000
2,57,
000
1,53,
495
2,89,
580
4,35,
192
7,00,
269
11,84,
612
DEPRECIATION
PROFIT
TRANSFER TO RESERVES
TOTAL INFOW
OUTFLOW
Preliminary and PreOperative Expenses
Increase In Capital
Expenditure
Increase in Current
Assets
Decrease in Term Loan
Decrease in Unsecured
Loan
0 YEAR
8,2
5,000
7,0
0,000
15,2
5,000
2
0,000
13,72
,500
1,5
2,500
-
2ND
YEAR
3RD
YEAR
4TH
YEAR
5TH
YEAR
2,3
5,640
3,8
7,400
5,2
6,774
8,9
3,444
17,10
,759
2,0
8,000
1,6
8,650
1,4
0,436
1,1
8,531
1,0
0,726
4,
43,640
5,5
6,050
6,6
7,210
10,1
1,975
18,1
1,485
-4
1,000
2,3
2,275
8
2,145
Withdrawal by Promotor
TOTAL OUTFLOW
1ST
YEAR
15,4
7
5,715
1,2
1,600
-
3
1,850
1,3
7,838
-
1,1
7,078
1,5
6,245
-
2,7
8,876
1,7
7,042
-
1,2
1,000
6
7,820
1
5,000
3,5
9,495
5
1,582
2
0,000
3,7
6,580
3
3,175
8
0,000
4,6
0,477
1
2,147
2,5
7,000
9,3
1,420
3,
6,3
6,1
8,4
16,5
12
5,000
94,420
9,630
7,850
6,975
6,485
OPENING BALANCE
6
5,000
4
5,000
1,3
9,220
5
5,640
1,0
5,000
2,7
0,000
NET INFLOW
-2
0,000
4
9,220
-8
3,580
4
9,360
1,6
5,000
1,5
5,000
45,000
1,
39,220
5
5,640
1,0
5,000
2,7
0,000
4,
25,000
CLOSING BALANCE
1ST YEAR
2ND YEAR
3RD YEAR
4TH YEAR
5TH YEAR
DEBT/EQUITY
0.71
0.75
0.45
0.18
OPERATING PROFIT/INCOME
33.47
35.05
36.77
41.61
47.60
PAT/INCOME
14.21
22.56
28.10
36.12
44.49
10.72
26.37
40.45
60.38
81.30
18.31
46.18
58.60
71.25
81.30
2.87
5.27
9.44
22.11
98.52
13
2ND YEAR
13,50
,000
3RD YEAR
16,20
,000
4TH YEAR
21,60
,000
5TH YEAR
32,40
,000
3,60,
360
80,
000
15,
000
1,55,
000
4,50,
450
1,20,
000
25,
000
1,70,
500
5,40,
540
1,50,
000
40,
000
1,87,
550
7,20,
720
1,80,
000
50
,000
2,06,
305
10,81,
080
2,20,
000
70
,000
2,26,
936
TOTAL
10,
000
6,2
0,360
20,
000
7,8
5,950
30,
000
9,48
,090
40
,000
11,97
,025
50
,000
16,48
,016
CONTRIBUTIONS
4,5
9,640
5,6
4,050
6,71
,910
9,62
,975
15,91
,985
TOTAL
2,
500
4,
500
82,
145
4,
000
10,
000
1,0
3,145
3,
000
6,
000
67,
820
4,
000
10,
000
9
0,820
3
,500
7
,200
51,
582
4
,000
10,
000
76
,282
4
,000
8
,000
33
,175
4
,000
15
,000
6
4,175
4
,500
9
,000
12
,147
4
,000
20
,000
4
9,647
22.44
16.10
6.66
3.12
Particulars
GROSS REVENUE
VARIABLE EXPENSES
RAW MATERIALS
ELECTRICITY EXPENSES
CONSUMABLE
SALARY & WAGES
RUNNING & MAINTENANCE
EXPENSES
FIXED EXPENSES
POSTAGE & STATIONERY
TELEPHONE EXPENSES
FINANCE COST
MISC. ENPENDITURE W/OFF
LEGAL AND INSURANCE
COST
11.35
14
Repayme
nt
Princip
al
Payme
nt
Interse
t@
12.60
%
Principal
amount at
the end of
year
7,00,
000
6,91,
565
6,83,
041
6,74,
428
6,65,
725
6,56,
930
6,48,
043
6,39,
062
6,29,
987
6,20,
817
6,11,
551
6,02,
187
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
8,4
35
8,5
24
8,6
13
8,7
04
8,7
95
8,8
87
8,9
81
9,0
75
9,1
70
9,2
66
9,3
64
9,4
62
6,91,5
65
6,83,0
41
6,74,4
28
6,65,7
25
6,56,9
30
6,48,0
43
6,39,0
62
6,29,9
87
6,20,8
17
6,11,5
51
6,02,1
87
5,92,7
25
15,78
5
15,78
5
15,78
5
15,78
5
9,5
61
9,6
62
9,7
63
9,8
66
7,3
50
7,2
61
7,1
72
7,0
81
6,9
90
6,8
98
6,8
04
6,7
10
6,6
15
6,5
19
6,4
21
6,3
23
82,1
45
6,2
24
6,1
23
6,0
22
5,9
19
Mont
h
1
2
3
4
5
6
7
8
9
10
11
12
Principal of Term
Loan at
beginning of the
year
5,83,1
64
5,73,5
02
5,63,7
39
5,53,8
73
15
5,53,
873
5,43,
904
5,33,
830
5,23,
650
5,13,
363
5,02,
968
4,92,
465
4,81,
850
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
9,9
69
10,0
74
10,1
80
10,2
87
10,3
95
10,5
04
10,6
14
10,7
26
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
10,8
38
10,9
52
11,0
67
11,1
83
11,3
01
11,4
19
11,5
39
11,6
60
11,7
83
11,9
06
12,0
32
12,1
58
15,78
5
15,78
5
15,78
5
15,78
5
15,78
12,2
85
12,4
14
12,5
45
12,6
77
12,8
17
18
19
20
21
22
23
24
5,8
16
5,7
11
5,6
05
5,4
98
5,3
90
5,2
81
5,1
71
5,0
59
67,8
20
4,9
47
4,8
33
4,7
18
4,6
02
4,4
84
4,3
66
4,2
46
4,1
25
4,0
02
3,8
79
3,7
53
3,6
27
51,5
82
3,5
00
3,3
71
3,2
40
3,1
08
2,9
5,43,9
04
5,33,8
30
5,23,6
50
5,13,3
63
5,02,9
68
4,92,4
65
4,81,8
50
4,71,1
25
4,60,2
87
4,49,3
35
4,38,2
68
4,27,0
85
4,15,7
84
4,04,3
65
3,92,8
25
3,81,1
65
3,69,3
82
3,57,4
76
3,45,4
44
3,33,2
87
3,21,0
01
3,08,5
87
2,96,0
42
2,83,3
65
2,70,5
16
365
2,70,
555
2,57,
611
2,44,
531
2,31,
314
2,17,
958
2,04,
461
1,90,
823
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
10
12,9
44
13,0
80
13,2
17
13,3
56
13,4
96
13,6
38
13,7
81
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
13,9
26
14,0
72
14,2
20
14,3
69
14,5
20
14,6
73
14,8
27
14,9
82
15,1
40
15,2
99
15,4
59
42
43
44
45
46
47
48
60
9,31,3
15
6,84,4
46
75
2,8
41
2,7
05
2,5
68
2,4
29
2,2
89
2,1
47
2,0
04
33,1
75
1,8
59
1,7
13
1,5
65
1,4
16
1,2
65
1,1
12
9
58
8
03
6
45
4
86
3
26
12,1
47
2,46,8
69
55
2,57,6
11
2,44,5
31
2,31,3
14
2,17,9
58
2,04,4
61
1,90,8
23
1,77,0
42
1,63,1
16
1,49,0
43
1,34,8
23
1,20,4
54
1,05,9
34
91,2
61
76,4
34
61,4
52
46,3
12
31,0
13
2,28,11,
327
17
YEA
R
I
PARTICULARS
OPENING BALANCE
LESS: DEPRECIATION
II
III
IV
LAND &
BUILDING
COMPUTE
R
PLANT &
MACHINERY
RATE OF
DEP. 5%
RATE OF
DEP. 60%
RATE OF
DEP. 15%
1,25,
000.00
6,
250.00
1,18,
750.00
5,
937.50
1,12,
812.50
5,
640.63
1,07,
171.88
5,
358.59
1,01,
813.28
32,50
0.00
19,50
0.00
13,00
0.00
7,80
0.00
5,20
0.00
3,12
0.00
2,08
0.00
1,24
8.00
83
2.00
12,15,0
00.00
1,82,2
50.00
10,32,7
50.00
1,54,9
12.50
8,77,8
37.50
1,31,6
75.63
7,46,1
61.88
1,11,9
24.28
6,34,2
37.59
5,09
0.66
96,72
2.62
499.
20
332.
80
95,135
.64
5,39,101
.95
TOTAL
13,72,5
00.00
2,08,0
00.00
11,64,5
00.00
1,68,6
50.00
9,95,8
50.00
1,40,4
36.25
8,55,4
13.75
1,18,5
30.88
7,36,8
82.88
1,00,7
25.50
6,36,1
57.37
18
19
20
21
22
23
24
25
26
27