ARYASSERIL ENTERPRISES

TECHNO-ECONOMIC FEASIBILITY REPORT

Introduction
Aryasseril Enterprises under the sole proprietorship of Mr.Sanil Kumar S is an endeavour
specialises in marketing and distribution of branded pharmaceuticals and medical products.
They are the representatives and first distributors of various emerging medicine
manufactures, and hospital equipment distributors in Kollam and Pathanamthitta districts.
They provide extensive range of medical products to retail clients, healthcare institutions, and
healthcare professionals. They strive to provide quality products at competitive rates and to
assist clients in properly identifying and meeting their healthcare needs.
Some of the products (not limited to) distributed by Aryasseril Enterprises are stated below.

 Pharmaceuticals
 Vision and eye care products for Ocular Dryness, Optometry etc.
 Women’s health care products, vitamin supplements etc
 Food supplements, protein powders etc
 Other general physician medicines.
 Hospital Care
 Biomedical equipments like Infusion pumps, Syringe pumps, Enteral feeding
pumps etc
 Patient care supplies –Diagnostic products & supplies, needles and syringes,
gloves, diabetic care supplies, walking aids, urological equipments etc.
 Cleaning supplies- Disinfectants, personal protective equipments, mops and
cleaning equipments etc.
 Infusion Therapy products- Disposable infusion pumps, extension sets, Huber
needles, IV Catheters, Needleless connectors etc.
Project at a Glance

Sl No Particulars Description

1 Entity Name Aryasseril Enterprises

2 Constitution Sole Proprietorship

3 Proprietor Mr. Sanil Kumar S

4 Date of Opening 31st October 2018

5 Office Address Aryasseril Enterprises, Mannadi Road, Enathu

6 Line of Activity Pharmaceuticals, Diagnostics, Surgicals,

Cosmetics etc

7 Cost of Project 400,000

8 Source of Fund Proprietor’s Capital- Rs.200,000/-

Bank Overdraft (Proposed)- Rs.2,00,000/-

9 Debt/ Equity Ratio 1:1

10 Promoter’s Contribution 50%

The scope of the Study

This Techno-Economic Study is conducted for Mr Sanil Kumar S, who needs financial
assistance for meeting working capital requirements of his new business, M/s Aryasseril
Enterprises. The study is based upon:

 The information provided by him.

 The information gathered from the present market situation.

The projections contained in the report are estimates which are conscientiously prepared,
based on discussions and knowledge of market and information supplied to us.
About the Proprietor

Mr. Sanil Kumar S: is a known public figure in Enathu and Mannadi area. He is having
several years of experience in pharmaceuticals distribution business in Kerala. His value
added services and personal touch in maintaining relationships with hospitals and
healthcare professionals are critical to meeting and exceeding healthcare needs and
expectations. He is actively engaged in various social and religious activities in Kottarakkara.

Financial Projections

The estimated Balance Sheet for 2018-19 and projected financial statements for the next
three years are provided under. Though financials are prepared under condition of
uncertainty and estimations have been used, all reasonable precautions have been taken to
avoid instances of unreasonable judgements, material misstatements factual errors etc.
a) Estimated Balance Sheet for 2018-19 and projections for 3 years.

Aryasseril Enterprises, Enathu

PROJECTED BALANCE SHEET FOR THE YEAR ENDED
2018-19 2019-20 2020-21 2021-22
Estimated -6
Months Projected Projected Projected
Rs. Ps. Rs. Ps. Rs. Ps. Rs. Ps.

SOURCES OF FUNDS

Capital Accounts
Proprietors Fund 2,00,000.00 2,00,000.00 2,00,000.00 2,50,000.00
Current Account 57,502.00 1,07,334.00 1,71,922.00 2,41,387.00

Loans & Borrowings

Bank Overdraft 75,000.00 1,95,000.00 2,00,000.00 1,50,000.00

Total 3,32,502.00 5,02,334.00 5,71,922.00 6,41,387.00

APPLICATION OF FUNDS

Fixed Assets ( As per Schedule)

Gross Block 1,51,600.00 1,32,680.00 1,01,268.00 80,255.00
Depreciation 18,920.00 31,412.00 21,013.00 14,557.00
Net Block 1,32,680.00 1,01,268.00 80,255.00 65,698.00

Investments & Deposits

Shop Deposit 10,000.00 10,000.00 10,000.00 10,000.00

Net Current Assets

Current Assets, Loans & Advances
Inventory 1,75,719.00 3,19,555.00 3,45,589.00 4,48,542.00
Sundry Debtors 35,000.00 75,000.00 1,35,000.00 1,25,000.00
Cash & Bank 4,103.00 18,511.00 30,078.00 27,147.00
2,14,822.00 4,13,066.00 5,10,667.00 6,00,689.00

Less: Current Liabilities & Provisions

Sundry Creditors 25,000.00 22,000.00 29,000.00 35,000.00
1,89,822.00 3,91,066.00 4,81,667.00 5,65,689.00

Total 3,32,502.00 5,02,334.00 5,71,922.00 6,41,387.00

- - - -
b) Estimated Profit & Loss Account for 2018-19 and Projections for 3 years

PROJECTED PROFIT & LOSS ACCOUNT FOR THE YEAR ENDING

2018-19 2019-20 2020-21 2021-22
Estimated- 6
Months Projected Projected Projected
Rs. Ps. Rs. Ps. Rs. Ps. Rs. Ps.
INCOME

Sales For the Year 7,19,328.00 19,85,720.00 25,45,842.00 33,04,256.00

Add: Closing Stock 1,75,719.00 3,19,555.00 3,45,589.00 4,48,542.00
8,95,047.00 23,05,275.00 28,91,431.00 37,52,798.00
Less: Cost of Sales
Opening Stock - 1,75,719.00 3,19,555.00 3,45,589.00
Add: Purchases 6,78,125.00 15,25,312.00 17,59,375.00 23,79,687.00
6,78,125.00 17,01,031.00 20,78,930.00 27,25,276.00

Operating Profit for the Year 2,16,922.00 6,04,244.00 8,12,501.00 10,27,522.00

G/P Margin 30.16 30.43 31.91 31.10

Less: Expenses
Accounting & Auditing 6,000.00 18,000.00 18,000.00 24,000.00
Advertisement 7,500.00 5,000.00 6,500.00 8,000.00
Electricity Charges 3,000.00 3,500.00 3,500.00 4,000.00
Fuel & Travelling Expense 13,500.00 22,500.00 26,000.00 29,000.00
Rent 10,500.00 24,000.00 26,400.00 27,000.00
Salaries & Allowances 36,000.00 72,000.00 84,000.00 90,000.00
Telephone Expenses 2,500.00 3,000.00 3,500.00 4,000.00

Total Expenses 73,000.00 1,30,000.00 1,49,900.00 1,62,000.00

Profit before Interest, Depreciation

& Taxation 1,43,922.00 4,74,244.00 6,62,601.00 8,65,522.00
Less: Depreciation for the year 18,920.00 31,412.00 21,013.00 14,557.00
Less: Interest on Loan 7,500.00 18,000.00 27,000.00 31,500.00
Net Profit 1,17,502.00 4,24,832.00 6,14,588.00 8,19,465.00
Net Profit Ratio 16.33 21.39 24.14 24.80

Drawings for the year ( Including

Income Tax) 60,000.00 3,75,000.00 5,50,000.00 7,50,000.00
Balance Transferred to Current
account 57,502.00 49,832.00 64,588.00 69,465.00
c) Projected Cash Flow Statement

CASH FLOW STATEMENT FOR THE YEAR ENDING

2018-19 2019-20 2020-21 2021-22
Estimated-6
Months Projected Projected Projected
Rs. Ps. Rs. Ps. Rs. Ps. Rs. Ps.
Cash from Operating Activities

Profit BeforeTax 1,17,502.00 4,24,832.00 6,14,588.00 8,19,465.00

Add: Non Cash- Non Operative Items

Depreciation 18,920.00 31,412.00 21,013.00 14,557.00
Interest on Loan 7,500.00 18,000.00 27,000.00 31,500.00
Operating Profit Before Working
Capital Change 1,43,922.00 4,74,244.00 6,62,601.00 8,65,522.00

Add/Less Changes in Working Capital

Increase in Debtors (35,000.00) (40,000.00) (60,000.00) 10,000.00
Increase in Creditors 25,000.00 (3,000.00) 7,000.00 6,000.00
Increase in inventory (1,75,719.00) (1,43,836.00) (26,034.00) (1,02,953.00)

Total Cash from Operating Activities (41,797.00) 2,87,408.00 5,83,567.00 7,78,569.00

Cash From Investing Activities

Purchase of Fixed Assets (1,51,600.00) - - -

Security & Other Investment (10,000.00) - - -

Total Cash from Investing Activities (1,61,600.00) - - -

Cash From Financing Activities

Proprietor's Fund 2,00,000.00 50,000.00

Overdraft from Bank 75,000.00 1,20,000.00 5,000.00 (50,000.00)
Interest on term loan (7,500.00) (18,000.00) (27,000.00) (31,500.00)
Drawings (60,000.00) (3,75,000.00) (5,50,000.00) (7,50,000.00)

Total Cash From Financing Activities 2,07,500.00 (2,73,000.00) (5,72,000.00) (7,81,500.00)

Total Cash From Business 4,103.00 14,408.00 11,567.00 (2,931.00)

Add: Opening Cash Balance - 4,103.00 18,511.00 30,078.00
Closing Cash Balance 4,103.00 18,511.00 30,078.00 27,147.00
- - - -
d. Fixed Assets & Depreciation Schedule

Fixed Assets & Depreciation Schedule

2018-19 2019-20 2020-21 2021-22
Projected Projected Projected Projected
Rs. Ps. Rs. Ps. Rs. Ps. Rs. Ps.

Plant & Machinery

a. Computer with Printer

Opening Balance - 36,480.00 21,888.00 13,133.00
(+) Additions during the year 45,600.00 - -
(-) Deletions during the year - - - -
45,600.00 36,480.00 21,888.00 13,133.00
Depreciation @ 40% 9,120.00 14,592.00 8,755.00 5,253.00
Closing Balance 36,480.00 21,888.00 13,133.00 7,880.00

b. Electronic & Electrical Equipments

Opening Balance - 24,000.00 14,400.00 8,640.00
(+) Additions during the year 30,000.00 - - -
(-) Deletions during the year - - - -
30,000.00 24,000.00 14,400.00 8,640.00
Depreciation @ 40% 6,000.00 9,600.00 5,760.00 3,456.00
Closing Balance 24,000.00 14,400.00 8,640.00 5,184.00

Office Furniture & Fittings

Opening Balance - 72,200.00 64,980.00 58,482.00
(+) Additions during the year 76,000.00 - - -
(-) Deletions during the year - - - -
76,000.00 72,200.00 64,980.00 58,482.00
Depreciation @ 10% 3,800.00 7,220.00 6,498.00 5,848.00
Closing Balance 72,200.00 64,980.00 58,482.00 52,634.00

Total Fixed Assets

Opening Balance - 1,32,680.00 1,01,268.00 80,255.00
(+) Additions during the year 1,51,600.00 - - -
(-) Deletions during the year - - - -
1,51,600.00 1,32,680.00 1,01,268.00 80,255.00
Depreciation 18,920.00 31,412.00 21,013.00 14,557.00
Closing Balance 1,32,680.00 1,01,268.00 80,255.00 65,698.00
Conclusion

The project is considered as viable while considering the following points;

 The promoter’s contribution is 50% of the proposed project cost.

 Estimated positive operating cash flows from second year onwards
 The financial projections, though based on assumptions, show the project is
economically feasible for the current market situation.
 Promoter’s extensive experience in the field of pharmaceutical distribution business.
 Though started only in October 2018, the initial reception of business shows its
potential and scope in future.