PROJECT REPORT

for
TERM LOAN
M/S. PRADHAAN ENGINEERING
CO,
525-526 QUICK METAL
COMPUND, ODHAV,
Ahmedabad – 382415,
Gujarat.
M/s. PARDHAAN ENGINEERING CO

LOAN INFORMATION

NAME OF APPLICANT UNIT M/S. PARDHAAN ENGINEERING CO

PURPOSE OF LOAN TO PURCHASE PLAND AND MACHINERY
TYPE OF LOAN TERM LOAN AND WORKING CAPITAL LIMIT
AMOUNT APPLIED FOR Rs. 45,40,000/- AS TERM LOAN
Rs.15,00,000/- AS CC LIMIT
LOAN ASSISTANCE REQUIRED FOR TO PURCHASE CNC VMC MACHINE
TYPE OF INDUSTRY ENGINEERING
ACTIVITY OF INDUSTRY MANUFACTURING
SIZE OF UNIT SMALL

GENERAL INFORMATION

TYPE OF FIRM PARTNERSHIP

PARTNER 1. MR HEMANG CHIREN DOSHI
2. MRS MITTAL KAVIN DOSHI
MOBILE NO. OF KEY PERSON 09825064807 ( MR CHIREN DOSHI)
OFFICE ADDRESS M/S. PRADHAAN ENGINEERING CO,
525-526 QUICK METAL COMPUND, ODHAV,
Ahmedabad – 382415,
Gujarat.
LAND & BUILDING Owned with Parent Company in the name of The
Electroplating and Polishing company
RESIDENCE ADDRESS 1. Mr Hemang chiren Doshi
15, a-2,amrapali apartment, new
sharda road, paldi, ahmedabad-
380007
2. Mrs Kavin Mittal Doshi
a-1-52, shymal row house,
satellite,ahmedabad-380015
LAND & BUILDING OWNED
M/s. PARDHAAN ENGINEERING CO

BIO DATA OF Promoters

NAME Mr Hemang chiren Doshi

ADDRESS 15, a-2,amrapali apartment, new
sharda road, paldi, ahmedabad-
380007
AGE 26 years

GENDER MALE

NATIONALITY INDIAN

COMMUNITY OTHER (GENERAL)

QUALIFICATION Post Graduate Diploma from Germany

EXPERIENCE IN BUSINESS 1 years

TENTATIVE INCORPORATION OF THIS UNIT 2015

CONSTITUTION OF THIS UNIT Partnership

EXPERIENCE IN SERVICE NIL

NAME OF PREVIOUS EMPLOYERS NONE

PAN NUMBER ALKPD5930D

PHOTO ID PROOF PAN CARD

RESIDENCE PROOF Light Bill

NAME Mrs Kavin Mittal Doshi

ADDRESS a-1-52, shymal row house, satellite,ahmedabad-

380015
AGE 39 years

GENDER FEMALE

NATIONALITY INDIAN

COMMUNITY OTHER (GENERAL)

QUALIFICATION Graduate
M/s. PARDHAAN ENGINEERING CO

EXPERIENCE IN BUSINESS New, just started

TENTATIVE INCORPORATION OF THIS UNIT 2015

CONSTITUTION OF THIS UNIT Partnership

EXPERIENCE IN SERVICE NIL

NAME OF PREVIOUS EMPLOYERS NONE

PAN NUMBER ANBPM1197J

PHOTO ID PROOF PAN CARD

RESIDENCE PROOF Light Bill

M/s. PARDHAAN ENGINEERING CO

ABOUT UNIT

NATURE OF ORDERS Job Work and Manufacturing of Domestic

HARDWARE products and other engineering parts

INDUSTRY TYPE Domestic engineering products

TYPE OF BUSINESS Job Work

EXPORT SALES NIL

VARIETY OF PRODUCTS MANUFACTURED Different types of hardware products to be used in

domestic market.

COMPANY PROFILE Hemang Chiren Doshi & Mittal Kavin Doshi has
decided to start the business of Pradhan Engg Co.
Mr Hemang will be handling the business under
guidance of his father Mr Chiren Doshi. He has
been handling business for around 25 years

COST AND MEANS OF FINANCE

COST OF PROJECT AMOUNT IN RS. MEANS OF FINANCE AMOUNT IN RS.

Haas Make CNC VMC 44.10 lacs PROMOTER’S 15.20 lacs
machine CONTRIBUTION
Accessories 16.50 lacs TERM LOAN 45.40 lacs

TOTAL 60.60 lacs TOTAL 60.60 lacs

M/s. PARDHAAN ENGINEERING CO

Security
Primary Security:
Nature / Description Market Value Bank’s share Date of Valuation
of Security (Rs. in lacs ) In % & Name
of Valuer

Plant and Machinery 60.60 Lacs 100% Not Required. Basis of the value is
(Invoice Value) quotations here attached with the
proposal

Collateral Security:
Nature / Description Market Value Bank’s share Date of Valuation & Nameof Valuer
of Security (Rs. in crore) In % whether valuer is on approved list

Registered Mortgage 60.00 Lacs 100% Yet to be done

of, A-2-31, Amrapali Approx
Apartments, Nr New
Sharda Mandir Road,
Paldi, Ahmedabad
Plot/ Survey no F.P.
461/1+462, T.P.No.6,
Mouje- Paldi, City
Ahmedabad
M/s. PARDHAAN ENGINEERING CO

SWOT Analysis

Strengths
1. Support from Existing Parent Unit
2. Partners are new in business but Promoters are Experienced
3. Standard Machine
4. Ready Orders in Hand from Parent company
5. Automization supported by Govt Subsidies and initiatives

Weakness
1. New young inexperienced partners
2. Heavy Investment considering current size of business

Opportunity
1. In house development of products will improve quality and lower the cost for parent company
2. Quality of Products will improve significantly on successful implementation of the project leading
to more business
3. Customer can look into Export for Domestic Hardware business after installing high end
Imported Machine

Threat
1. Products can be copied easily

INTEREST PRINCIPAL BIFURCATION

6059907
MACHINE PRICE
1519907
MARGIN
4540000
LOAN AMOUNT
TENURE 60
M/s. PARDHAAN ENGINEERING CO

EMI ON MACHINE
11.45%
RATE OF INTEREST

Sl No. EMI Interest Principal O/S. Principal

1 Mortarium Period 43319
2 43319
3 43319
4 43319
5 43319
6 43319
1 118986 43319 75667 4464333
2 118264 42597 75667 4388667
3 117542 41875 75667 4313000
4 116820 41153 75667 4237333
5 116098 40431 75667 4161667
6 115376 39709 75667 4086000
7 114654 38987 75667 4010333
8 113932 38265 75667 3934667
9 113210 37543 75667 3859000
10 112488 36821 75667 3783333
11 111766 36099 75667 3707667
12 111044 35377 75667 3632000
13 110322 34655 75667 3556333
14 109600 33933 75667 3480667
15 108878 33211 75667 3405000
16 108156 32489 75667 3329333
17 107434 31767 75667 3253667
18 106712 31045 75667 3178000
19 105990 30323 75667 3102333
20 105268 29601 75667 3026667
21 104546 28879 75667 2951000
22 103824 28157 75667 2875333
23 103102 27435 75667 2799667
24 102380 26713 75667 2724000
25 101658 25992 75667 2648333
26 100936 25270 75667 2572667
27 100214 24548 75667 2497000
28 99492 23826 75667 2421333
29 98770 23104 75667 2345667
M/s. PARDHAAN ENGINEERING CO

30 98048 22382 75667 2270000

31 97326 21660 75667 2194333
32 96604 20938 75667 2118667
33 95882 20216 75667 2043000
34 95160 19494 75667 1967333
35 94438 18772 75667 1891667
36 93716 18050 75667 1816000
37 92994 17328 75667 1740333
38 92272 16606 75667 1664667
39 91550 15884 75667 1589000
40 90828 15162 75667 1513333
41 90106 14440 75667 1437667
42 89384 13718 75667 1362000
43 88662 12996 75667 1286333
44 87940 12274 75667 1210667
45 87218 11552 75667 1135000
46 86496 10830 75667 1059333
47 85774 10108 75667 983667
48 85052 9386 75667 908000
49 84331 8664 75667 832333
50 83609 7942 75667 756667
51 82887 7220 75667 681000
52 82165 6498 75667 605333
53 81443 5776 75667 529667
54 80721 5054 75667 454000
55 79999 4332 75667 378333
56 79277 3610 75667 302667
57 78555 2888 75667 227000
58 77833 2166 75667 151333
59 77111 1444 75667 75667
60 76389 722 75667 0
DSCR And Other important Ratios

Debt Service Coverage Ratio (DSCR)

2016 2017 2018 2019 2020
Net Profit 4.70 7.65 9.10 11.05 13.34
Depreciation 9.08 7.72 6.56 5.58 4.74
Interest Expense 3.03 4.63 3.59 2.55 1.51
Total (A) 16.81 19.99 19.25 19.18 19.59
Interest Expense 3.03 4.63 3.59 2.55 1.51
Principal Repayment 0.75 9.08 9.08 9.08 9.08
Instalment (B) 3.78 13.71 12.67 11.63 10.59
M/s. PARDHAAN ENGINEERING CO

(Principal + Interest)
DSCR (A/B) 4.45 1.46 1.52 1.65 1.85
AVG DSCR 2.18

Other important Ratios

M/s. PARDHAAN ENGINEERING CO

FY FY FY FY
Estimated Estimated Estimated Estimated
2016 2017 2018 2019

1 Current Ratio 1.37 1.50 1.65 1.80

2 Debt/Equity Ratio 1.81 1.10 0.64 0.33

3 TOL/TNW Ratio 2.89 2.16 1.56 1.15

4 TOL/TNW Ratio with

unsecured loan as quasi
capital & included in Net
2.41 1.82 1.34 0.99
Worth
5 Gross Profit margin % 28.20 20.78 19.73 19.05

6 Net Profit margin % 11.75 9.56 9.48 9.59

7 FACR
8 Total inventory/Net Sales 0.20 0.13 0.14 0.13

9 Receivables/Gross sales 25.00 25.00 25.00 25.00

Implementation schedule.

Activity Starting Date Completion Date

Purchase of Plant and August 2015 September 2015
Machinery
Installation September 2015 October 2015
Trail Run October 2015 November 2015
Commercial production December 2015 December 2015
M/s. PARDHAAN ENGINEERING CO

Repayment 60 Month
Door to Door Tenor : 66 Months
Zero date : 30 August 2015
Implementation period : 6 Months
Schedule date of Completion of project : 31st August 2015
COD : 30th September, 2015
Moratorium 6 Months

Actual Repayment Period : 66 Months

Whether Mthly/Qtrly/HY/Yrly instalment : Monthly
First installment due on : 28th Feb, 2016
Last installment due on : 31st Jan, 2021

Loan Availability Period : 66 Months

Terminal Date of disbursement : 30th August, 2015

OPERATING STATEMENT

2016 2017 2018 2019 2020

M/s. PARDHAAN ENGINEERING CO

Gross Sale 40.00 80.00 96.00 115.20 138.24

Less Excise Duty 0.00 0.00 0.00 0.00 0.00
Net Sales 40.00 80.00 96.00 115.20 138.24
Cost of Sales - - - - -
Raw Materials - - - - -
-Imported 0.00 0.00 0.00 0.00 0.00
-Indigenous 24.00 48.00 61.44 74.88 91.24
Other Spares 0.00 0.00 0.00 0.00 0.00
Power & Fuel 0.50 1.36 1.56 1.79 2.06
Direct Labour 3.00 8.00 10.00 12.00 14.00
Repairs & Main. 0.00 0.00 0.00 0.00 0.00
Other Mfg.Exp. 0.14 0.30 0.50 1.00 2.00
Depreciation 9.08 7.72 6.56 5.58 4.74
Sub Total 36.72 65.37 80.06 95.25 114.04
Add: Opening SIP 0.00 8.00 10.00 13.00 15.00
Deduct: Closing SIP 8.00 10.00 13.00 15.00 16.00
Sub Total 28.72 63.37 77.06 93.25 113.04
Add: Opening FGs 0.00 0.00 0.00 0.00 0.00
Deduct: Closing FGs 0.00 0.00 0.00 0.00 0.00
(Cost of Sales) 28.72 63.37 77.06 93.25 113.04
Gross Profit (3 – 4) 11.28 16.63 18.94 21.95 25.20
Interest 4.38 5.98 4.94 3.90 2.86
Selling, General & admn. exp
2.20 3.00 4.90 7.00 9.00
Operating Profit 4.70 7.65 9.10 11.05 13.34
Other Income/Exp. - - - - -
Add Income 0.00 0.00 0.00 0.00 0.00
Deduct exp. 0.00 0.00 0.00 0.00 0.00
Sub Total ( - ) ( + ) 0.00 0.00 0.00 0.00 0.00
Profit before tax 4.70 7.65 9.10 11.05 13.34
Less provision for tax 0.00 0.00 0.00 0.00 0.00
Net Profit / Loss 4.70 7.65 9.10 11.05 13.34
Dividend Paid / Payable 0.00 0.00 0.00 0.00 0.00
M/s. PARDHAAN ENGINEERING CO

Cash Flow Analysis

(Rs. In Lacs)
M/s. PARDHAAN ENGINEERING CO

FY FY FY FY
Estimated Estimated Estimated Estimated
2016 2017 2018 2019

1 Paid-Up Capital 24.70 32.35 41.44 52.49

2 Reserves & Surplus 0.00 0.00 0.00 0.00

3 Intangible Assets 0.00 0.00 0.00 0.00

4 Tangible Net Worth 24.70 32.35 41.44 52.49

5 Adjusted TNW(4+7-10) 24.70 32.35 41.44 52.49

6 Long term Liabilities 40.56 32.48 24.40 16.32

7 Unsecured loans from

Promoters / family included
5.00 6.00 7.00 8.00
under (5)
8 Capital Employed(4)+(6) 65.26 64.83 65.84 68.81

9 Net Block 53.81 46.09 39.53 33.96

10 Investments 0.00 0.00 0.00 0.00

11 Non-Current Assets 0.00 0.00 0.00 0.00

12 Current Assets 42.33 56.01 66.65 78.66

13 Current Liabilities 30.88 37.28 40.34 43.80

14 NWC 11.45 18.73 26.31 34.86

15 Net Sales 40.00 80.00 96.00 115.20

Domestic 40.00 80.00 96.00 115.20

Export 0.00 0.00 0.00 0.00

% growth 0.04 1.00 0.20 0.20

16 Gross Profit 11.28 16.63 18.94 21.95

17 Net Profit Before Tax 4.70 7.65 9.10 11.05

18 Net Profit After Tax 4.70 7.65 9.10 11.05

19 Depreciation 9.08 7.72 6.56 5.58

20 Cash Accruals 13.78 15.36 15.66 16.63

M/s. PARDHAAN ENGINEERING CO

21 Long Term sources (8) 65.26 64.83 65.84 68.81

22 Long Term uses (9+10+11) 53.81 46.09 39.53 33.96

23 Surplus/Deficit 11.45 18.73 26.31 34.86