COST OF PRODUCTION

Raw Materials
Req. per Req. per Req. per
Particulars Rate per kg. day month year
Paper in roll 10 2950 73750 885000
Total (Rs.) 29500 737500 8850000
Gum 8 35 875 10500
Total (Rs.) 280 7000 84000
Printing Ink 65 20 500 6000
Total (Rs.) 1300 32500 390000
Misc. Chemical 4 40 1000 12000
Total (Rs.) 160 4000 48000
String 7 50 1250 15000
Total (Rs.) 350 8750 105000
Net Total 789750 9477000

FIXED ASSETS

Land
Particulars Sq. mts. Rate (Rs.) Total Cost
Land 400 1100 440000

Building
Particulars Sq. mts. Rate (Rs.) Total Cost
Buliding 275 1800 495000

Plant and Machinery

Name Qty. Rate Total Cost
Automatic Paper
bag machine 3 500000 1500000
Stereo Press 2 250000 500000
Stereo Grinder 2 350000 700000
Roll Slitter 1 250000 250000
Testing Equipment 1 80000 80000
Punching Machine 1 50000 50000

Other Assets

Particulars Qty. Rate (Rs.) Total Cost

Furniture and Fixtures N/A 150000 150000
Electrifications
Installation Charges N/A 75000 75000
Computer 1 40000 40000
Telephone 2 15000 30000
Fax Machine 2 15000 30000
Boundary wall & gate 1 35000 35000

Total Fixed Assets

No. Particulars Amount

1 Land ( 400 Sqm. @ Rs. 1100) 440000
2 Building (275 Sqm. @ Rs. 1800) 495000
3 Boundary Wall & Gate 35000
4 Plant & Machinery
*Automatic Paper Bag 1500000
*Stereo Press 500000
*Stereo Grinder 700000
*Roll Slitter 250000
*Testing Equipment 80000
*Punching Machine 50000
5 Furniture & Fixtures 150000
Electrification & Installation
6 Charges 75000
Computer, Telephone & Fax
7 Machine 100000
Total 4375000
 COST OF PRODUCTION
Other Expenses and Utilities

Sr. Particulars P.M. P.A.

1 Electricity 17000 204000
2 Water Charges 1500 18000
3 Postage and Telegram 2000 24000
4 Stationery 1200 14400
5 Repairs 2000 24000
6 Telephone Expense 1800 21600
7 Transport
*inward 2000 24000
*outward 2000 24000
8 Packing 3000 36000
9 Miscellaneous Expense 2000 24000
10 Audit Expense 21500
11 Professional Tax 1000
12 Legal Fees 15500
13 Insuarnce 102000
14 Selling Expense 16750 201000
Total 51250 755000

TOTAL PROJECT FUND

Sr. Particulars Amount

1 Fixed Cost 4375000
2 Working Capital (2 months) 1675550
Total 6050550

SOURCES OF FINANCE

Sr. Particulars Rate Amount

1 Own Capital (40%) 8% 3000000
2 Borrowed Capital (60%)
*HDFC 12% 2250000
*Investments 10% 2250000
Total 7500000

INTEREST ON CAPITAL

Sr. Particulars Rate Amount

1 Own Capital (40%) 8% 240000
2 Borrowed Capital (50%)
*HDFC 12% 270000
*Invesments 10% 225000
Total 735000

DEPRECIATION
Sr. Particulars Value Amount
1 Building (10%) 450000 45000
2 Plant & Equipment (25%) 3080000 770000
3 Other Fixed Assets (15%) 310000 46500
4 Computer (40%) 40000 16000
Total 877500

ANNUAL COST OF PRODUCTION

Sr. Particulars Amount
1 Raw Materials 9477000
2 Recurring Expenses 1292600
3 Depreciation 735000
4 Interest in Investment 735000
Total 12239600

SALES FORECAST
 Amount
Year Units/annum Rate/unit (Rs.)
1 10450000 1.25 13062500
2 11840000 1.25 14800000
3 13950000 1.25 17437500
4 14200000 1.5 21300000
5 14550000 1.5 21825000

SCHEDULE OF FIXED & VARIABLE COST

Fixed
Particulars Variable cost cost
Amount Amount
Depreciation N/A 877500
Int. on Capital N/A 735000
Salary 322560 215000
Other Expenses 453000 302000
Raw Materials 9477000 N/A
Total 10252560 2129500