PROJECT REPORT

OF

AGARBATTI MAKING

INDIRA NAGAR , KANHAN

TALUKA.PARSHIWANI,
DIS. NAGPUR
MAHARASHTRA-441401
 KNOW MORE ABOUT PROMOTER

NAME OF BUSINESS : AGARBATTI MAKING

NAME OF PROPRIETOR : POONAM SACHIN GAJBHIYE

ADDRESS : Indira nagar, Gajbhiye lay out,

Kanhan, near water tank, Sihora,
Nagpur, Maharashtra-441401

UNIT ADDRESS : Indira nagar, Kanhan,

Taluka. Parshivani, Dis. Nagpur
Maharashtra-441401

DATE OF BIRTH : 11/07/1991

QUALIFICATION : HSC

EXPERIENCE IN THIS FIELD : TWO YEARS

CONTACT NO. : 8329275835,9511621294

 POONAM SACHIN GAJBHIYE

PROJECT OF AGARBATTI MAKING

COST OF PROJECT

PARTICULARS Amount (Rs. In Lakhs)

Tools & Equipments 15.00

Working Capital 10.00

Total Project Cost (Rs. In Lakhs) 25.00

MEANS OF FINANCE

PARTICULARS Amount (Rs. In Lakhs)

Promoters Contribution @
5% 1.25

Bank Term Loan @ 95% 23.75

Total (Rs. In Lakhs) 25.00

Margin Money From KVIB 35% on

Project Cost 8.75
 POONAM SACHIN GAJBHIYE

PROJECT OF AGARBATTI MAKING

Projected Balance Sheet
(Rs. In Lakhs)
PARTICULARS Year 1 Year 2 Year 3 Year 4 Year 5

LIABILITIES -

Capital 7.44 16.55 29.89 48.81 75.21

Term Loan 20.75 17.75 14.75 3.00 -

Current Liabilities 6.56 1.31 1.56 1.88 2.25

Margin Money
Reserve 8.75 8.75 8.75 8.75 8.75

Total (Rs. In Lakhs) 43.51 44.36 54.96 62.44 86.21

ASSETS -

Fixed Assets : 15.00 12.75 10.84 9.21 7.83

Less :- Depreciation 2.25 1.91 1.63 1.38 1.17
Net Fixed Assets 12.75 10.84 9.21 7.83 6.66

Investments 3.13 8.50 15.75 20.00 21.25

Deposit of Margin
Money 8.75 8.75 8.75 - -

Current Assets :
Receivables 11.38 13.65 17.25 23.75 35.06
Cash in Hand 7.50 2.63 4.00 10.86 23.25

Total (Rs. In Lakhs) 43.51 44.36 54.96 62.44 86.21

[Type text]

POONAM SACHIN GAJBHIYE

PROJECT OF AGARBATTI MAKING

CAPITAL ACCOUNT
(Rs. In Lakhs)
PARTICULARS Year 1 Year 2 Year 3 Year 4 Year 5

Opening Capital - 7.44 16.55 29.89 48.81

Add :- Capital
Introduced 1.25 - - - -

Add :- Profit during

the year 10.19 14.61 19.59 25.67 33.90

Less :- Withdrawls 4.00 5.50 6.25 6.75 7.50

Closing Capital 7.44 16.55 29.89 48.81 75.21

 POONAM SACHIN GAJBHIYE

PROJECT OF AGARBATTI MAKING

DETAILS OF SALARY & WAGES

Rate Amount TotalAmount

Sr . No. Category Nos.
Rs./ Month Rs./ Month Rs./ Year

SKILLED
1 LABOUR 13 6,000.00 78,000.00 936,000.00

UNSKILLED
2 LABOUR 3 3,000.00 9,000.00 108,000.00

16 1,044,000.00

IN Lakhs = 10.44
 POONAM SACHIN GAJBHIYE

PROJECT OF AGARBATTI MAKING

Cash Flow Statement

(Rs. In Lakhs)
PARTICULARS Year 1 Year 2 Year 3 Year 4 Year 5

Opening Cash Balance - 8.26 12.20 17.42 26.59

Sources of Funds :
Profit Before Tax 10.19 14.61 19.59 25.67 33.90
Depreciation 2.25 1.91 1.63 1.38 1.17
Term Loan 23.75 - - - -
Promoter's
Contribution 1.25 - - - -
Subsidy Received 8.75 - - - -
Decrese in Bank deposit
subsidy - - - 8.75 -
Increase in Current
Liabilities 6.56 1.31 1.56 1.88 2.25

Sub Total (A) 52.76 26.09 34.98 55.09 63.92

Application of Funds
:

Fixed Assets 15.00 - - - -

Increase in Bank
deposit 8.75 - - - -
Repayment of Term Loans 3.00 3.00 3.00 3.00 3.00
Repay. of T.Loans out of
Subsidy - - - 8.75 -
Income Tax - 0.31 0.94 1.56 2.19
Withdrawals 3.75 5.00 6.00 7.00 7.50
Increase in Current Assets 12.00 2.38 2.88 3.44 4.13
Decrease in Current - - - - -
Increase in
Investments 2.00 3.20 4.75 4.75 4.75

Sub Total (B) 44.50 13.89 17.56 28.50 21.56

Closing Cash Balance 8.26 12.20 17.42 26.59 42.36

 POONAM SACHIN GAJBHIYE

PROJECT OF AGARBATTI MAKING

Schedule of Interest & Repayment of Loan

(Rs. In Lakhs)
PARTICULARS Year 1 Year 2 Year 3 Year 4 Year 5

Opening Balance 23.75 20.75 17.75 14.75 3.00

Installment Amount 0.75 0.75 0.75 0.75 0.75

No of Installment 4.00 4.00 4.00 4.00 4.00

Repayment During the

Year 3.00 3.00 3.00 3.00 3.00

Closing Balance 20.75 17.75 14.75 11.75 -

KVIB Margin Money

Credited - - - 8.75 -

Closing Balance
after
Adjustment of
Subsidy 20.75 17.75 14.75 3.00 -

Interest @ 9.5% 2.26 1.97 1.69 1.40 0.29

Adjustment due to
Interest
on Margin 1.19 1.19 1.19 1.19 -

Net Interest Burden 1.07 0.78 0.50 0.21 0.29

 POONAM SACHIN GAJBHIYE

PROJECT OF AGARBATTI MAKING

Projected Profitability Statement

(Rs. In Lakhs)
PARTICULARS Year 1 Year 2 Year 3 Year 4 Year 5

Gross Receipts 90.00 108.00 129.60 155.52 186.62

Total 90.00 108.00 129.60 155.52 186.62

Expenditure

Raw Material &

Consumables 62.10 74.52 89.42 107.31 128.77
Salary & Wages 10.44 11.48 12.63 13.90 15.29
Electricity Expenses 0.60 0.75 0.94 1.17 1.46
Conveyance &
Travelling 0.36 0.41 0.48 0.55 0.63
Rent 1.20 1.32 1.45 1.60 1.76
Shop
Expenses 0.24 0.28 0.32 0.37 0.42
Repair & Maintenance 0.36 0.43 0.52 0.62 0.75
Depreciation 2.25 1.91 1.63 1.38 1.17

Total 77.55 91.11 107.38 126.89 150.25

Financial Charges

Interest on Term Loan 2.26 1.97 1.69 1.40 0.29

Profit Before Tax 10.19 14.92 20.53 27.23 36.09

Income Tax - 0.31 0.94 1.56 2.19

Profit Transferred to
Capital A/c. 10.19 14.61 19.59 25.67 33.90
 POONAM SACHIN GAJBHIYE

PROJECT OF AGARBATTI MAKING

DETAILS OF RECEIPTS

PARTICULARS (Amount in Rs.)

GROSS SALE OF AGARBATTI MAKING 750,000.00

[Per Month]

750,000.00

Yearly 9,000,000.00

Rs. In Lakhs 90.00

* 20% INCREASE PER YEAR

 POONAM SACHIN GAJBHIYE

PROJECT OF AGARBATTI MAKING

Debt Service Coverage And Debt Equity Ratio
(Rs. In Lakhs)
PARTICULARS Year 1 Year 2 Year 3 Year 4 Year 5
DEBT SERVICE
COVERAGE RATIO :

Profit after Tax 10.19 14.61 19.59 25.67 33.90

Add : Depreciation 2.25 1.91 1.63 1.38 1.17
Add : Interest on Term Loan 2.26 1.97 1.69 1.40 0.29

Sub Total (A) 14.70 18.49 22.90 28.45 35.36

Interest on Term Loan 2.26 1.97 1.69 1.40 0.29

Repayment of Term
Loan 3.00 3.00 3.00 3.00 3.00

Sub Total (B) 5.26 4.97 4.69 4.40 3.29

D.S.C.R. 2.80 3.72 4.89 6.46 10.77

Average D.S.C.R. - 5.73

DEBT EQUITY RATIO :

Promoter's Contribution 7.44 16.55 29.89 48.81 75.21

Unsecured Loan - - - - -
Sub Total (A) 7.44 16.55 29.89 48.81 75.21

Term Loan (B) 20.75 17.75 14.75 3.00 -

Debt Equity Ratio (B/A) 2.79 1.07 0.49 0.06 -