OM SAI CONSTRUCTION

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 HOME
OM SAI CONSTRUCTION

BIO-DATA OF PROMOTER
PROPRIETOR SHRI ANIL DONGRE

Sr. No. Particulars Details

1 Name SHRI ANIL DONGRE

2 Father Name SHRI SHRIRAM DONGRE

3 Age 42 YEARS

4 Qualification 10TH PASS

AT VILLAGE MURRI, TAH. & DIST.
5 Factory Address
GONDIA
6 Residential Address AT KUMBHARE NAGAR, GONDIA

7 Experience 5 YEARS RICH EXPERIANE

 Annexture T-II Home
OM SAI CONSTRUCTION
ANNUAL SALES REALISATION (AT 100% CAPACITY UTILISATION

Sr. No. Particular Yield Quantity Rate/No. Amount

1 FLY ASH BRICKS 98.00% 2205000.00 2 44.10
2 SCRAP 2% 45000.00 0.20
Total 2250000.00 44.30

Total 2250000.00 44.30

Annual Sales at 60% Capacity utilisation 1350000.00 26.58

Annual Sales at 65% Capacity utilisation 1462500.00 28.80
Annual Sales at 70% Capacity utilisation 1575000.00 31.01
Annual Sales at 75% Capacity utilisation 1687500.00 33.23
Annual Sales at 80% Capacity utilisation 1800000.00 35.44
Annual Sales at 85% Capacity utilisation 1912500.00 37.66
 Annexture T-III
OM SAI CONSTRUCTION

PROCESS FLOW CHART

FLY ASH BRICK

MANUFACTURING UNIT

FLY ASH GYPSUM LIME SAND

WEIGHING

PAN MIXTURE

CONVEYOR

FLY ASH BRICK MAKING MACHINE

(HYDRALIC OR POWER PRESS)

TRANSPORTED TO WOODEN RACKS

KEPT AS IT IS FOR TWO DAYS FOR

SETTING

WATER CURING
(7 TO 10 DAYS)

DRYING
(ONE OR TWO DAYS)

SORTING & TESTING

DISPATCH
 ANNEXURE T-IV HOME
OM SAI CONSTRUCTION

COST ESTIMATED OF PLANT AND MACHINERY

Amount
Sr. No. Particular Qty.
(Rs. Lacs)
Automatic vertical type
As per
1 machine,PAN MIXER,Belt 18
Quotation
conveyor, Hydrulic trolly

2 STATE VAT TAX @5% 0.9

Transportation, Installation and

Add Errection charges, Loading, 0.1
Unloading, Insurance etc.

Total 19
 ANNEXURE T-V HOME
OM SAI CONSTRUCTION

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 HOME
OM SAI CONSTRUCTION
TENTATIVE LAYOUT

Sr. No. Particulars Descriptions

1 Location AT VILLAGE MURRI, TAH. & DIST.

GONDIA
2 Land

3 Transportation Facilities Available.

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 Home
OM SAI CONSTRUCTION

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 HOME
OM SAI CONSTRUCTION

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 Home
OM SAI CONSTRUCTION

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 1 4000 0.48

2 Peon/Choukidar 1 1500 0.18

Total 2 0.66

Add 10% towards social benefits 0.066

Total Salary 0.73

0.03 lacs Rs. Increase every year

Amount per Amount

Sr. No. Particular No.s
month payment

PRODUCTION STAFF

1 Supervisor, Operator. 3 3000 1.08

2 Semiskilled worker 5 2500 1.5

3 Unskilled labour 12 2000 2.88

Total 20 5.46

Add 10% towards social benefits 0.55

Total Salary 6.01

0.1 lacs Rs. Increase every year

 ANNEXURE T- X HOME
OM SAI CONSTRUCTION

ORGANISATION FLOW CHART

MANAGING PROPRIETOR

MIXING DIVISION ADMINISTRATIVE

DIVISION

SUPERVISOR MANAGER CUM

ACCOUNT CLERK

MACHINE OPERATOR

UNSKILLED WORKERS
 ANNEXURE T- XI

OM SAI CONSTRUCTION

Capacity Estimate of the Plant and Machinary

The Capacity of the flyash plant is 25 bricks per minute

Hence Annual Capacity Based on single shift working of 6 hrs per day for 300 days will be
No. of days 250 days
No. of Shift 1 Shift
Bricks per minute 25 No.
Bricks per Houre 1500 No.
No. of Hours Per Day 6 Hours per day

Total Production per Annum 2250000 Bricks per annum

OM SAI CONSTRUCTION

Cost Estimate of annual Raw Material Requirments

Propertion of Raw Material

Sr. No. Pariculars Propertion

1 FLY ASH 70%
2 GYPSUM 10%
3 LIME 5%
4 SAND (IN TRACTOR) 15%
Total
Raw Material Required Rs. In lacs
At 60% Capacity 6.52
At 65% Capacity 7.06
At 70% Capacity 7.60
At 75% Capacity 8.15
At 80% Capacity 8.69
At 85% Capacity 9.23
 ANNEXURE T- XI Home

achinary

day for 300 days will be

Rs. In Lacs
Requirments

QUANTITY
(IN MT) RATE AMOUNT(IN Lakh)
1575 300 4.725
225 1900 4.275
112.5 1300 1.4625
40 1000 0.4
10.8625
 ANNEXURE - FI
OM SAI CONSTRUCTION

PROFITABILITY PROJECTIONS
Rs. In Lacs
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
No. of working days 250 250 250.00 250.00 250.00
No. of shifts 1 1 1 1 1
Installed capacity (In No.)) 2250000 2250000 2250000 2250000 2250000
Capacity utilisation 60% 65% 70% 75% 80%
Production quantity (In No.)) 1350000 1462500 1,575,000.00 1,687,500.00 1,800,000.00
SALES :- 26.58 28.80 31.01 33.23 35.44
COST OF PRODUCTION
Raw Material 6.5175 7.060625 7.60375 8.15 8.69
Power 2.07 2.24 2.41 2.58 2.76
Wages including benefits 6.01 6.11 6.21 6.31 6.41
Repair & Maintenance 0.4 0.4 0.50 0.50 0.60
Spare & Stores 0.2 0.2 0.25 0.25 0.30
Insurance 0.1 0.1 0.1 0.1 0.1
Depreciation 3.22 2.76 2.36 2.02 1.73
TOTAL :- 18.51 18.86 19.43 19.91 20.58
ADMINISTRATIVE EXPENSES.
Salary including benefits 0.73 0.76 0.79 0.82 0.85
Other expenses 0.7 0.8 0.9 1 1.1
TOTAL :- 1.43 1.56 1.69 1.82 1.95
FINANCIAL EXPENSES.
Interest on working capital 0.25 0.25 0.25 0.25 0.25
Interest on term loan 2.83 2.31 1.75 1.19 0.63
TOTAL :- 3.08 2.56 2.00 1.44 0.88
GRANT TOTAL (B+C+D) : 23.02 22.97 23.11 23.16 23.41
OPERATING PROFIT (A-E) 3.56 5.82 7.90 10.06 12.03
P&P EXPENSES WRITTEN OFF 0.04 0.04 0.04 0.04 0.04
PROFIT BEFORE TAX 3.52 5.78 7.86 10.02 11.99
TAXATION 0.20 0.44 1.03 1.10 1.14
PROFIT AFTER TAX 3.32 5.34 6.83 8.92 10.85
CUMULATIVE PROFIT 3.32 8.66 15.49 24.41 35.27
E - FI Home

Year 6
250.00
1
2250000
85%
1,912,500.00
37.66

9.23
2.93
6.51
0.60
0.30
0.1
1.48
21.15

0.88
1.2
2.08

0.25
0.10
0.35
23.58
14.07
0.00
14.07
1.24
12.83
48.10
 ANNEXURE FII Home
OM SAI CONSTRUCTION

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
Days
Raw Materials 30 0.78 0.85 0.91 0.98
Flyash, Gypsum, Lime , sand

Finished goods 20 1.02 1.07 1.14 1.19

Receivable 0.51 0.50 0.55 0.55

TOTAL : 2.31 2.42 2.60 2.72
Less: Margin Money @10% for first year 0.23 0.34 0.52 0.64
Bank Finance @90% 2.08 2.08 2.08 2.08

CALCULATION OF INTEREST ON WORKING CAPITAL :

Year Amount Interest @ 12%
First year 2.08 0.25
Second year 2.08 0.25
Third year 2.08 0.25
Fourth year 2.08 0.25
Fifth year 2.08 0.25
Sixth year 2.08 0.25
Vth Year VIth Year

1.04 1.11

1.26 1.31

0.55 0.55
2.85 2.97
0.77 0.89
2.08 2.08
 ANNEXURE FIII
OM SAI CONSTRUCTION Home

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 - 3.50 19.00 0.20 22.70
Dep. For 1st Year - 0.35 2.85 0.02 3.22
W.D.V. as on II Year - 3.15 16.15 0.18 19.48
Dep. For 2st Year - 0.32 2.42 0.02 2.76
W.D.V. as on III Year - 2.84 13.73 0.16 16.72
Dep. For 3rd Year - 0.28 2.06 0.02 2.36
W.D.V. as on IV Year - 2.55 11.67 0.15 14.37
Dep. For 4th Year - 0.26 1.75 0.01 2.02
W.D.V. as on V Year - 2.30 9.92 0.13 12.35
Dep. For 5th Year - 0.23 1.49 0.01 1.73
W.D.V. as on VI Year - 2.07 8.43 0.12 10.62
Dep. For 6th Year - 0.21 1.26 0.01 1.48
W.D.V. as on VII Year - 1.86 7.17 0.11 9.13
 ANNEXURE FIV HOME
OM SAI CONSTRUCTION

ESTIMATE OF ADMINISTRATIVE EXPENSES :

Amount
Sr. No. Paricular
(in Lacs)

1 Rent Rates & Taxes 0.32

2 Printing & Stationery 0.02

3 Postage & Telegramme 0.02

4 Legal & Audit Fees 0.03

5 Bank Commission & charges 0.15

6 Miscellaneous expenses. 0.04

7 Travelling expenses. 0.02

8 Telephone expenses. 0.05

9 Advertisement expenses. 0.05

Total 0.7

0.1 Lakh increase in every year

 ANNEXURE FV Home
OM SAI CONSTRUCTION

BANK TERM LOAN

No. of Instailments 20 Nos
Loan Amount 21.50 Period of Installments 3 Months
Rate 13% All the installments shal ll be of Rs01.08 lach each
Rs. In Lacs
Total Principal
Quarter Loan amount Qly P.R Int
Interest. repayment
1 21.50 0.70
2 21.50 0.72
3 21.50 1.08 0.75
4 20.43 1.08 0.66 2.83 2.15
5 19.35 1.08 0.63
6 18.28 1.08 0.59
7 17.20 1.08 0.56
8 16.13 1.08 0.52 2.31 4.30
9 15.05 1.08 0.49
10 13.98 1.08 0.45
11 12.90 1.08 0.42
12 11.83 1.08 0.38 1.75 4.30
13 10.75 1.08 0.35
14 9.68 1.08 0.31
15 8.60 1.08 0.28
16 7.53 1.08 0.24 1.19 4.30
17 6.45 1.08 0.21
18 5.38 1.08 0.17
19 4.30 1.08 0.14
20 3.23 1.08 0.10 0.63 4.30
21 2.15 1.08 0.07
22 1.08 1.08 0.03
23 0.00 0.00
24 0.00 0.00 0.10 2.15
TOTAL - 21.50 8.80 8.80 21.50
 ANNEXURE FVI
OM SAI CONSTRUCTION

CASH FLOW STATEMENT

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

1 Opening Balance - 0.10 1.30 1.53 1.77 2.34 2.53

2 Net profit before tax and interest - 6.64 8.38 9.89 11.50 12.91 14.43
3 Enterprenuer contribution 1.50 - - - - - -
4 Subsidy - 6.25 - - - - -
5 Long term borrowing 21.50 - - - - - -
6 Working capital Cash credit limit - 2.08 0.00 0.00 - - -
7 Deprecition - 3.22 2.76 2.36 2.02 1.73 1.48
TOTAL :- 23.00 18.29 12.43 13.78 15.30 16.98 18.44
1 Fixed Assets & Capital expenses. 22.90 - - - - - -
2 Increase in current it mets. - 2.31 0.11 0.18 0.12 0.13 0.12
3 Advance to raw material supplies - 2.00 2.00 2.00 2.00 4.00 6.00
4 F.D.R. under Bank lieu 6.25 - - - - -
5 Repayment of long term borrowing - 2.15 4.30 4.30 4.30 4.30 2.15
6 Interest - 3.08 2.56 2.00 1.44 0.88 0.35
7 Taxation - 0.200 0.440 1.030 1.100 1.140 1.240
8 Investment & security deposit - 1.00 1.00 1.00 1.00 1.00 3.00
Advance to raw material supplier
9 - 0 0.5 1.5 3 3 3
Tender, Security deposit.
TOTAL :- 22.90 16.99 10.91 12.01 12.96 14.45 15.86
CLOSING BALANCES : 0.10 1.30 1.53 1.77 2.34 2.53 2.58
Home
 ANNEXURE FVII
OM SAI CONSTRUCTION Home

PROJECTED BALANCE SHEET

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

LIABILITIES
Enterprenuer capital 1.50 1.50 1.50 1.50 1.50 1.50 1.50
Reserve & Surplus - 3.32 8.66 15.49 24.41 35.27 48.10
Long term loan 21.50 19.35 15.05 10.75 6.45 2.15 -
Subsidy - 6.25 6.25 6.25 6.25 6.25 6.25
Working capital Cash Credit limit
2.08 2.08 2.08 2.08 2.08 2.08
from Bank.
Total 23.00 32.50 33.54 36.07 40.69 47.25 57.93

ASSETS
Gross fixed assets 22.70 22.70 19.48 16.72 14.37 12.35 10.62
Less: Depreciation & P&P Exp. - 3.22 2.76 2.36 2.02 1.73 1.48
Net Fixed Assets 22.70 19.48 16.72 14.37 12.35 10.62 9.13
Current Assets - 2.31 2.42 2.60 2.72 2.85 2.97
Advance to Raw Material suppliers - 2.00 4.00 6.00 8.00 12.00 18.00
F.D.R. under Bank lien - 6.25 6.25 6.25 6.25 6.25 6.25
Investment & Security deposit - 1.00 2.00 3.00 4.00 5.00 8.00
Advance to Raw Material suppliers,
tenders & security deposite - 0.50 2.00 5.00 8.00 11.00
Preliminary & Preoperative expenses. 0.20 0.16 0.12 0.08 0.04 - -
Cash & Bank Balances 0.10 1.30 1.53 1.77 2.34 2.53 2.58
Total 23.00 32.50 33.54 36.07 40.69 47.25 57.93

- - - - - - -
 ANNEXURE FVIII
OM SAI CONSTRUCTION

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 3.32 5.34 6.83 8.92 10.85 12.83 48.10
2 Interest on term loan 2.83 2.31 1.75 1.19 0.63 0.10 8.80
3 Depreciation 3.22 2.76 2.36 2.02 1.73 1.48 13.57
TOTAL :- 9.37 10.40 10.93 12.13 13.21 14.42 70.47

4 Repayment of term loan 2.15 4.30 4.30 4.30 4.30 2.15 21.50
5 Interest on term loan 2.83 2.31 1.75 1.19 0.63 0.10 8.80
TOTAL :- 4.98 6.61 6.05 5.49 4.93 2.25 30.30

Average D.S.C.R. = 2.33

 ANNEXURE FIX
OM SAI CONSTRUCTION

BREAK EVEN ANALYSIS AND SELECTED RATIO

DEBT EQUITY RATIO :

DEBT EQUITY
Particular Amount Particular Amount
Long term loan 21.50 Enterprenuer contribution 1.5
Subsidy (Margin Money) 6.25
Total 21.50 Total 7.75

Debt Equity Ratio 2.77

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

Amount
Sr. No. Particular
(in lacs)
1 Depreciation 2.36
2 Interet on term loan 1.75
3 Repairs and Maintenance and stores and spares (50%) 0.38
4 Administrative salary & expenses (50%) 0.84
Total 5.32

Fixed cost x 100

B.E.P.
43.82
(in%) Fixed cost + Profit

B.E.P. at 70% Capacity utilisation (in%) 30.67

ENTERPRENUER'S CONTRIBUTION AS PERCENTAGE OF PROJECT COST :

PROJECT COST FIRM CONTRIBUTION

Particular Amount Particular Amount

Enterprenuer contribution 1.5 Enterprenuer contribution 1.5

Term loan 22
Cash credit limit from Bank. 2.00
Total 25.00 Total 1.5
Enterprenuer's contribution
(IN%) 6
Project cost
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 OM SAI CONSTRUCTION

PROJECT AT A GLANCE

Sr (Rs in
Particulars
No Lacs)

I CAPITAL OUTLAY

1 Land -

2 Factory blog and shed 3.50

3 Plant & Machinary 19.00

4 Other fixed assets 0.20

5 Preliminary Expenses 0.20

6 Working Capital Margin 2.10

TOTAL 25.00

II SOURCES OF FUND

1 Promoters contribution (capital) 1.50

2 Bank Term Loan 21.50

3 C.C. limit required From Bank 2.00
(Being 95% of working capital margin)
TOTAL 25.00

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