AMARPRAKASH INDUSTRIES

Project Report

Sr. No. Particular

1 Glance
2 Bio-Data
3 Sals Realization
4 Flow Chart
5 Cost Estimate of Plant And Machinery
6 Details of Preliminary and preoprative Exp.
7 Tentative Layout
8 Power
9 Miscellaneous Fixed Assets
10 Man Power and Wages
11 Organisation Flow Chart
12 Capacity and Raw Material
13 Profit and Loss
14 Working capita interest
15 Depriciation
16 Estimate of Administrative Exp.
17 Interest on term loan
18 Cash flow
19 Balance Sheet
20 DSCR
21 BEP
 Annexture-T-I
AMARPRAKASH INDUSTRIES

BIO-DATA OF PROMOTER
PROPRIETOR SHRI KAILASH MAKKAD

Sr. No. Particulars Details

1 Name SHRI KAILASH MAKKAD

2 Father Name SHRI PRAKASHCHANDRA MAKKAD

3 Age 28YEARS

4 Qualification B.COM
AT PARDIBANDH, TAH & DIST.
5 Factory Address
GONDIA
6 Residential Address JAISTAMBH CHOWK, GONDIA

7 Experience 3 YEARS RICH EXP.

 Annexture T-II
AMARPRAKASH INDUSTRIES
ANNUAL SALES REALISATION (AT 100% CAPACITY UTILISATION

Sr. No. Particular Quantity Rate/Pcs Amount

1 1lts Bottle 2400000.00 5 120.00
2 250ml Pouch 4800000.00 0.45 21.60
3 20lts Jar 60000.00 20 12.00
Total 153.60

Total 153.60

Annual Sales at 60% Capacity utilisation 0.00 92.16

Annual Sales at 65% Capacity utilisation 0.00 99.84
Annual Sales at 70% Capacity utilisation 0.00 107.52
Annual Sales at 75% Capacity utilisation 0.00 115.20
Annual Sales at 80% Capacity utilisation 0.00 122.88
Annual Sales at 85% Capacity utilisation 0.00 130.56
 ANNEXURE T-IV
AMARPRAKASH INDUSTRIES

COST ESTIMATED OF PLANT AND MACHINERY

Amount
Sr. No. Particular Qty.
(Rs. Lacs)
Water Treatment machinery,
As per
1 water pump and other 15.5
Quotation
machinery

Transportation, Installation and

Add Errection charges, Loading, 0.2
Unloading, Insurance etc.

Total 15.7
 ANNEXURE T-V
AMARPRAKASH INDUSTRIES

DETAILS OF PRELIMINARY AND PREOPERATIVE EXPENSES

Amount
Sr. No. Particular
(Rs. Lacs)
Interest during the implementation
period, M.S.E.B. deposit &
deposits with Govt. Department
1 0.2
Mortgage K.V.I.C. Registration
charges Start up and
Miscellaneous expenses.
Total 0.2

Out of 4 Months implementation period interest has been

calculated for a period of Two Months on the assumption that
the loan will be availed in the Middle stages.
 ANNEXURE T-VI
AMARPRAKASH INDUSTRIES
TENTATIVE LAYOUT

Sr. No. Particulars Descriptions

1 Location AT PARDIBANDH, TAH & DIST.

GONDIA
2 Land Land having area 0.22 HR
kh.no256/1/1
3 Transportation Facilities The site is situated at Village
Pardibandh Tahsil & District Gondia
(M.H.) beside the Tar road.
4
Infrastructure facilities

4.1 Power 35 H.P. from nearest M.S.E.B.

substation.
4.2 Water Drinking water will be available from
the well already situated beside the
site.
5 Other facility the Bank,Post Available.
office, Hospital etc.
 ANNEXURE T-VII
AMARPRAKASH INDUSTRIES

ESTIMATE OF ANNUAL POWER LOAD

Sr. No. Particular Details

POWER REQUIRMENTS :
1 Annual Load 35 h.p.

2 Load Utilised 35 H.P.

CALCULATION OF POWER :

1 Power Factor 0.746

2 Annual Power consumption 62664 Units

3 Rate 5.5 per unit

4 Annual Power expenditure 344652 Rs.

Annual Sales at 100% Capacity utilisation 3.45 Lacs

Annual Sales at 60% Capacity utilisation 2.07 Lacs

Annual Sales at 65% Capacity utilisation 2.24 Lacs

Annual Sales at 70% Capacity utilisation 2.41 Lacs

Annual Sales at 75% Capacity utilisation 2.58 Lacs

Annual Sales at 80% Capacity utilisation 2.76 Lacs

Annual Sales at 85% Capacity utilisation 2.93 Lacs

 ANNEXURE T-VIII
AMARPRAKASH INDUSTRIES

COST ESTIMATE OF MISCELLANEOUS FIXED ASSETS :

Amount
Sr. No. Particular
(In lacs)
Office furniture like Table,
1 Chair,Almirah, Racks, Calculator 0.15
etc.
Fire Fighting equipment and
2 First Aid box etc. & telephone 0.05
etc.
Total 0.2
 ANNEXURE T-IX
AMARPRAKASH INDUSTRIES

MAN POWER REQUIREMENT AND ESTIMATES OF ANNUAL

SALARY AND WAGES BILLS

Amount per Amount

Sr. No. Particular No.s
month payment

ADMINISTRATIVE DIVISION

1 Manager cum accountant 2 5000 0.6

2 Peon/Choukidar 1 2000 0.24

Total 3 0.84

Add 10% towards social benefits 0.084

Total Salary 0.92

0.15 lacs Rs. Increase every year

Amount per Amount

Sr. No. Particular No.s
month payment

PRODUCTION STAFF

1 Supervisor, Operator. 4 4000 1.92

2 Semiskilled worker 5 3000 1.8

3 Unskilled labour 11 3000 3.96

Total 20 7.68

Add 10% towards social benefits 0.77

Total Salary 8.45

0.5 lacs Rs. Increase every year

 ANNEXURE T- X
AMARPRAKASH INDUSTRIES

ORGANISATION FLOW CHART

MANAGING PROPRIETOR

FILTERING DIVISION ADMINISTRATIVE

DIVISION

SUPERVISOR MANAGER CUM

ACCOUNT CLERK

MACHINE OPERATOR

UNSKILLED WORKERS
 ANNEXURE T- XI

AMARPRAKASH INDUSTRIES

Capacity Estimate of the Plant and Machinary

The Capacity of the mineral water treatment plant is 2000 lts per hour.
Hence Annual Capacity Based on single shift working for 300 days will be
No. of days 300 days
No. of Shift 1 Shift
Ltrs. Per Hour 2000 lts
No. of Hours Per Day 8 Hours per day
Total Production per Ann 4800000 lts. per annum

AMARPRAKASH INDUSTRIES
Rs. In Lacs
Cost Estimate of annual Raw Material Requirments

Particulars Quantity Rate Amount

Packing bottle with cap 2400000 3 72
Printed pouch (250ml) 4800000 0.14 6.72
20Lts jar 60000 15 9
Bottel Label 2460000 0.25 6.15
Box Packing Material 200000 6 12
Other Packing Material 96000 5 4.8
- -
Total 110.67

Raw Material Required Rs. In lacs

At 60% Capacity 66.40
At 65% Capacity 71.94
At 70% Capacity 77.47
At 75% Capacity 83.00
At 80% Capacity 88.54
At 85% Capacity 94.07
 ANNEXURE - FI
AMARPRAKASH INDUSTRIES

PROFITABILITY PROJECTIONS
Rs. In Lacs
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
No. of working days 300 300 300.00 300.00 300.00 300.00
No. of shifts 1 1 1 1 1 1
Installed capacity (In Lts) 4800000 4800000 4800000 4800000 4800000 4800000
Capacity utilisation 60% 65% 70% 75% 80% 85%
Production quantity (In Lts) 0 0 0 0 0 0
SALES :- 92.16 99.84 107.52 115.20 122.88 130.56
COST OF PRODUCTION
Raw Material 66.402 71.9355 77.469 83.00 88.54 94.07
Power 2.07 2.24 2.41 2.58 2.76 2.93
Wages including benefits 8.45 8.95 9.45 9.95 10.45 10.95
Repair & Maintenance 1 1 1.10 1.10 1.20 1.20
Spare & Stores 0.2 0.2 0.25 0.25 0.30 0.30
Insurance 0.1 0.1 0.1 0.1 0.1 0.1
Depreciation 2.88 2.47 2.13 1.83 1.57 1.35
TOTAL :- 81.10 86.90 92.91 98.81 104.91 110.90
ADMINISTRATIVE EXPENSES.
Salary including benefits 0.92 1.07 1.22 1.37 1.52 1.67
Other expenses 2.64 3.14 3.64 4.14 4.64 5.14
TOTAL :- 3.56 4.21 4.86 5.51 6.16 6.81
FINANCIAL EXPENSES.
Interest on Cash Credit 0.19 0.19 0.19 0.19 0.19 0.19
Interest on term loan 2.97 2.42 1.83 1.25 0.66 0.11
TOTAL :- 3.16 2.61 2.02 1.43 0.85 0.30
GRANT TOTAL (B+C+D) : 87.82 93.72 99.79 105.76 111.93 118.01
OPERATING PROFIT (A-E) 4.34 6.12 7.73 9.44 10.95 12.55
P&P EXPENSES WRITTEN OFF 0.04 0.04 0.04 0.04 0.04 0.00
PROFIT BEFORE TAX 4.30 6.08 7.69 9.40 10.91 12.55
TAXATION 0.20 0.44 1.03 1.10 1.14 1.24
PROFIT AFTER TAX 4.10 5.64 6.66 8.30 9.77 11.31
CUMULATIVE PROFIT 4.10 9.74 16.40 24.70 34.48 45.78
 ANNEXURE FII
AMARPRAKASH INDUSTRIES

ESTIMATES OF WORKING CAPITAL AND MARGIN MONEY REQUIREMENT AND

CALCULATION OF WORKING CAPITAL INTEREST
Rs. Lacs
Period in
Sr. No. Ist year Iind year IIIrd Year Ivth Year Vth Year VIth Year
Days
Raw Materials 10 2.21 2.40 2.58 2.77 2.95 3.14
Pani Pouch, Bottle,cap,& others

Finished goods 5 1.30 1.41 1.51 1.62 1.72 1.83

Receivable Lump- sum 2.10 2.50 2.75 3.15 3.85 4.15

TOTAL : 5.62 6.30 6.85 7.53 8.52 9.11
Less: Margin Money 4.06 4.74 5.29 5.97 6.96 7.55
Bank Finance 1.56 1.56 1.56 1.56 1.56 1.56

CALCULATION OF INTEREST ON WORKING CAPITAL :

Year Amount Interest @ 12%
First year 1.56 0.19
Second year 1.56 0.19
Third year 1.56 0.19
Fourth year 1.56 0.19
Fifth year 1.56 0.19
Sixth year 1.56 0.19
 ANNEXURE FIII
AMARPRAKASH INDUSTRIES

COMPUTATION OF DEPRECIATION
DEPRECIATION SCHEDULE
Rs. In Lacs

Plant &
Factory blog Other fixed Total
Particulars Land Machinar
and Shed Assets Rs.
y
Rate of Depreciation 0% 10% 15% 10%
Opening WDV - 5.04 15.70 0.20 20.94
Dep. For 1st Year - 0.50 2.36 0.02 2.88
W.D.V. as on II Year - 4.54 13.35 0.18 18.06
Dep. For 2st Year - 0.45 2.00 0.02 2.47
W.D.V. as on III Year - 4.08 11.34 0.16 15.59
Dep. For 3rd Year - 0.41 1.70 0.02 2.13
W.D.V. as on IV Year - 3.67 9.64 0.15 13.46
Dep. For 4th Year - 0.37 1.45 0.01 1.83
W.D.V. as on V Year - 3.31 8.20 0.13 11.63
Dep. For 5th Year - 0.33 1.23 0.01 1.57
W.D.V. as on VI Year - 2.98 6.97 0.12 10.06
Dep. For 6th Year - 0.30 1.04 0.01 1.35
W.D.V. as on VII Year - 2.68 5.92 0.11 8.71
 ANNEXURE FIV
AMARPRAKASH INDUSTRIES

ESTIMATE OF ADMINISTRATIVE EXPENSES :

Amount
Sr. No. Paricular
(in Lacs)

1 Rent Rates & Taxes 0.2

2 Printing & Stationery 0.5

3 Postage & Telegramme 0.02

4 Legal & Audit Fees 0.15

5 Bank Commission & charges 0.15

6 Miscellaneous expenses. 0.1

7 Travelling expenses. 0.1

8 Telephone expenses. 0.05

9 Advertisement expenses. 0.2

10 Rate difference discount etc. 0.17

11 Transport Expenses 1

Total 2.64

0.5 Lakh increase in every year

 ANNEXURE FV
AMARPRAKASH INDUSTRIES

BANK TERM LOAN

No. of Instailments 20 Nos
Loan Amount 20.94 Period of Installments 3 Months
Rate 14% All the installments shal ll be of Rs0.70 lach each
Rs. In Lacs
Total Principal
Quarter Loan amount Qly P.R Int
Interest. repayment
1 20.94 0.73
2 20.94 0.76
3 20.94 1.05 0.79
4 19.89 1.05 0.70 2.97 2.09
5 18.85 1.05 0.66
6 17.80 1.05 0.62
7 16.75 1.05 0.59
8 15.71 1.05 0.55 2.42 4.19
9 14.66 1.05 0.51
10 13.61 1.05 0.48
11 12.56 1.05 0.44
12 11.52 1.05 0.40 1.83 4.19
13 10.47 1.05 0.37
14 9.42 1.05 0.33
15 8.38 1.05 0.29
16 7.33 1.05 0.26 1.25 4.19
17 6.28 1.05 0.22
18 5.24 1.05 0.18
19 4.19 1.05 0.15
20 3.14 1.05 0.11 0.66 4.19
21 2.09 1.05 0.07
22 1.05 1.05 0.04
23 0.00 0.00
24 0.00 0.00 0.11 2.09
TOTAL - 20.94 9.24 9.24 20.94
 ANNEXURE FVI
AMARPRAKASH INDUSTRIES

CASH FLOW STATEMENT

(Figures in Lacs)
IIIrd
S.No. Particulars Cost Ist Year Iind Year IVth Year Vth Year Vith Year
Year

1 Opening Balance - 2.30 0.16 0.45 0.55 0.84 1.05

2 Net profit before tax and interest - 7.50 8.73 9.75 10.87 11.80 12.84
3 Enterprenuer contribution 2.50 - - - - - -
4 Subsidy - 6.25 - - - - -
5 Long term borrowing 20.94 - - - - - -
6 Working capital Cash credit limit - 1.56 0.00 0.00 - - -
7 Deprecition - 2.88 2.47 2.13 1.83 1.57 1.35
TOTAL :- 23.44 20.49 11.37 12.32 13.25 14.21 15.25
1 Fixed Assets & Capital expenses. 20.94 - - - - - -
2 Increase in current it mets. - 5.62 0.68 0.54 0.69 0.99 0.59
3 Advance to raw material supplies - 2.00 1.00 1.00 2.50 1.50 2.00
4 F.D.R. under Bank lieu 6.25 - - - - -
5 Repayment of long term borrowing - 2.09 4.19 4.19 4.19 4.19 2.09
6 Interest - 3.16 2.61 2.02 1.43 0.85 0.30
7 Taxation - 0.200 0.440 1.030 1.100 1.140 1.240
8 Preliminary expences 0.20
Expences on development of lab &
9 other testing and anaysis - 1.00 2.00 3.00 2.50 4.50 7.50
TOTAL :- 21.14 20.32 10.92 11.78 12.41 13.17 13.72
CLOSING BALANCES : 2.30 0.16 0.45 0.55 0.84 1.05 1.53
 ANNEXURE FVII
AMARPRAKASH INDUSTRIES

PROJECTED BALANCE SHEET

Particulars Cost Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

LIABILITIES
Enterprenuer capital 2.50 2.50 2.50 2.50 2.50 2.50 2.50
Reserve & Surplus - 4.10 9.74 16.40 24.70 34.48 45.78
Long term loan 20.94 18.85 14.66 10.47 6.28 2.09 -
Subsidy - 6.25 6.25 6.25 6.25 6.25 6.25
Working capital Cash Credit limit
- 1.56 1.56 1.56 1.56 1.56 1.56
from Bank.
Total 23.44 33.25 34.71 37.18 41.29 46.88 56.09

ASSETS
Gross fixed assets 20.94 20.94 18.06 15.59 13.46 11.63 10.06
Less: Depreciation & P&P Exp. - 2.88 2.47 2.13 1.83 1.57 1.35
Net Fixed Assets 20.94 18.06 15.59 13.46 11.63 10.06 8.71
Current Assets - 5.62 6.30 6.85 7.53 8.52 9.11
Advance to Raw Material suppliers - 2.00 3.00 4.00 6.50 8.00 10.00
F.D.R. under Bank lien - 6.25 6.25 6.25 6.25 6.25 6.25
Expences on development of lab &
other testing and anaysis - 1.00 3.00 6.00 8.50 13.00 20.50
Preliminary & Preoperative expenses. 0.20 0.16 0.12 0.08 0.04 - -
Cash & Bank Balances 2.30 0.16 0.45 0.55 0.84 1.05 1.53
Total 23.44 33.25 34.71 37.18 41.29 46.88 56.09
 ANNEXURE FVIII
AMARPRAKASH INDUSTRIES

CALCULATION OF DEBT SERVICE COVERAGE RATIO

IIIrd IVth VIth

S.No. Description Ist Year IInd Year Vth Year TOTAL
Year Year Year

1 Net profit afte tax 4.10 5.64 6.66 8.30 9.77 11.31 45.78
2 Interest on term loan 2.97 2.42 1.83 1.25 0.66 0.11 9.24
3 Depreciation 2.88 2.47 2.13 1.83 1.57 1.35 12.23
TOTAL :- 9.95 10.54 10.62 11.37 12.01 12.77 67.26

4 Repayment of term loan 2.09 4.19 4.19 4.19 4.19 2.09 20.94
5 Interest on term loan 2.97 2.42 1.83 1.25 0.66 0.11 9.24
TOTAL :- 5.07 6.61 6.02 5.43 4.85 2.20 30.18

Average D.S.C.R. = 2.23

 ANNEXURE FIX
AMARPRAKASH INDUSTRIES

BREAK EVEN ANALYSIS AND SELECTED RATIO

DEBT EQUITY RATIO :

DEBT EQUITY
Particular Amount Particular Amount
Long term loan 20.94 Enterprenuer contribution 2.5
Subsidy (Margin Money) 6.25
Total 20.94 Total 8.75

Debt Equity Ratio 2.39

BREAK EVEN POINT ANALYSIS ON IIIrd YEAR WORKING AT 70% CAPACITY:

Amount
Sr. No. Particular
(in lacs)
1 Depreciation 2.13
2 Interet on term loan 1.83
3 Repairs and Maintenance and stores and spares (50%) 0.68
4 Administrative salary & expenses (50%) 2.43
Total 7.07

Fixed cost x 100

B.E.P.
51.47
(in%) Fixed cost + Profit

B.E.P. at 70% Capacity utilisation (in%) 36.03

ENTERPRENUER'S CONTRIBUTION AS PERCENTAGE OF PROJECT COST :

PROJECT COST FIRM CONTRIBUTION

Particular Amount Particular Amount

Enterprenuer contribution 2.5 Enterprenuer contribution 2.5

Term loan 21
Cash credit limit from Bank. 1.56
Total 25.00 Total 2.5
Enterprenuer's contribution
(IN%) 10
Project cost
 AMARPRAKASH INDUSTRIES

PROJECT AT A GLANCE

Sr (Rs in
Particulars
No Lacs)

I CAPITAL OUTLAY

1 Land -

2 Factory blog and shed 5.04

3 Plant & Machinary 15.70

4 Other fixed assets 0.20

5 Working Capital Margin 4.06

TOTAL 25.00

II SOURCES OF FUND

1 Promoters contribution (capital) 2.50

2 Bank Term Loan 20.94

3 C.C. limit required From Bank 1.56

TOTAL 25.00