Project Report

Of

PSHM Trading Private LTD.

BRIEF PARTICULARS OF THE PSHM TRADING PRIVATE LTD.
The Company PSHM Trading Private Ltd. was incorporated under the Indian Companies Act.
At Present there are three Directors (1) Mr Phire Singh Nagar (2) Mr Abhishek Nagar.

PROPOSED PLAN OF THE COMPANY

The Company at present planning to setup factory at Greater Noida for manufacturing of
Products on Job Work Basis. To capture the existing demand at Greater Noida Area
Company interested to set up factory at Greater Noida.

PROMOTERS AND MANAGEMENT

The management team of the company will consists of the following persons:

NAMES DESIGNATIONS
Phire Singh Nagar Director

Abhishek Nagar Director

Both the Directors having good skills. Knowledge and Experience in the field Engineering.
Besides the Directors, Company will engage efficient professionals and Marketing Persons.

ARRANGEMENT FOR PROCUREMENT OF MATERIALS

The Company Will do work on job work basis. It require only consumable which will be
easily available in Greater Noida & Noida.

ARRANGEMENT FOR LABOUR

In Greater Noida Labour for manufacturing of Engineering products are easily available.

MARKETING ARRANGMENTS
There are no problems for marketing. There are very huge demands in field of construction
as well as in industries.

TERM LOAN REQUIREMENTS

The firm required term loan of Rs. 30 Lacks for purchases of plot, Construction of Building
and Purchase of Plant & Machinery at Greater Noida. Details Project Report are enclosed
herewith for you kind consideration.
(PSHM TRADING PRIVATE LTD.)

We are enclosing herewith the following statements:

S.NO CONTENTS ANNEXURE

1. Details of Plant & Machinery 1

2. Requirement of Raw Materials and Consumables 2

3. Utilities 3

4. Manpower Requirements 4

5. Computation of Working Capital 5

6. Details of Misc. Fixed Assets 6

7. Capital Cost Of the Project 7

8. Total Cost Of Project 8

9. Means of Financing 9

10. Annual cost of Production 10

11. Statement of Capacity utilization & Sales Projections 11

12. Statement of Raw Consumables 12

13. Projection of performance , Profitability and Repayments 13

14. Balance Sheet 14

15. Cash Flow Statements 15

16. Calculation of Break Even point 16

17. Detail of Repayment of Term Loan & Short Term Loan 17

18. Details of Interest on Term Loan 18

19. Details of Depreciation 19

20. Details of selling Administrative & Other exp. 20

21. Detail of Provision for Taxation 21

(PSHM TRADING PRIVATE LTD.)
ANNEXURE: 1

Details of Plant & Machinery:

MAKE Installed

S.NO.PARTICULARS NOS. Value(in Rs.)

1. Drilling Machine ¾” Indigenous 4 60000.00

2. Drilling Machine 1/4” Do 4 40000.00

3. Welding Set Do 4 80000.00

4. Gas cutting Set. Do 6 36000.00

5. Grinding Machine Do 5 12500.00

6. Lathe Machine Do 3 150000.00

7. Kharad Machine Do 5 350000.00

8. Tools gigs & Fixture Do 15000.00

TOTAL: 228500.00
(PSHM TRADING PRIVATE LTD.)

- Requirement Of Raw Material(s) and Consumable(s)

ANNEXURE:2

S.NO Item Annual Annual Inventory Value of

Requiem value(Rs.) Period material

(MTRS) in weeks in Rs.

1 Consumables Qty Can not be 750000 15 DAYS 30822

Quantified

Consumed as per

Specification

Requirement
(PSHM TRADING PRIVATE LTD.)
ANNEXURE; 3

Utilities:

Power 25 KW Source UPSEB

Connected Load 25 KW

Water Normal use 10 Kl/Month Source

Process Use Kl/Month Source N.A

(PSHM TRADING PRIVATE LTD.)
ANNEXURE; 4

Manpower requirement:

Administration Technical Total monthly Annual

& Salary (Rs.) Salary/

Workers’ Wages (Rs.)

2 110000 13.20 Lacs

2: SUPERVISOR

10: SKILLED WORKERS

10: UNSKILLED WORKERS

Total Rs. 13.20 Lacs

Add benefits @ 33% of total Rs. 4.40 Lacs

Grand total for salary & Wages Rs. 17.60 Lacs

With benefit.
(PSHM TRADING PRIVATE LTD.)
ANNEXURE; 5

Computation of Working Capital

a) Consumable based on inventory period 30822

b) Monthly Salary & Wages 146666
c) Monthly Power Bill 25000
d) Half Yearly insurance premium 10000
e) Monthly Repairs & Maintenance 10000
f) Monthly Administrative expenses including overheads 18000

Total 240488
Say 240500
(PSHM TRADING PRIVATE LTD.)
ANNEXURE; 6

Details of Misc. Fixed Assets:

a) Furniture and Fixtures 75000

b) Equipment for testing & Quality Control 25000
c) Generator 75000
d) Miscellaneous in lump sum 50000

Total 225000
(PSHM TRADING PRIVATE LTD.)
ANNEXURE; 7
Capital Cost of the project
a) Land 1000 Sq. Mtrs. 3996000
Including conveyanceing charges

b) Site development including construction 8285000

Of boundary wall, building, OH tank etc.

c) Installed value of plant & Machinery 228500

d) Misc. Fixed Assets 225000
e) Security deposit & estimates for utilities 75000
f) Preliminary & Pre-operative Expenses 75000

TOTAL 5424500
(PSHM TRADING PRIVATE LTD.)
ANNEXURE; 8
Total Cost Of Project:
a) Capital Cost 5424500
b) Working Capital 240500
Total
5665000

Means of Financing:
ANNEXURE; 9
a) Share Capital 2665000
b) Term Loan from Bank 3000000
Total
5665000

(PSHM TRADING PRIVATE LTD.)

 ANNEXURE; 10

Annual Cost Of Production Figures in Lacs

a) Consumables 7.50
b) Utilities 3.00
c) Salary & Wages including benefits 17.60
d) Repairs & Maintenance 1.200
e) Administrative & Sales overheads 2.19
f) Annual Insurance Premium 0.59
g) Depreciation 1.28
h) Interest on Term Loan 3.00
i) Interest on Short term Loan 0.00
TOTAL
36.36

Profitability: (Figures in Lacs)

a) Annual Sales Revenue 50.00

b) Annual Expenditures 36.36
c) Profit before Tax (a-b) 13.64
d) Profit after Tax 9.05

(PSHM TRADING PRIVATE LTD.)

 ANNEXURE; 11

STATEMENT OF CAPACITY UTILISATION & JOB WOR PROJECTIONS

YEARS

IST IIND IIIRD IVTH VTH

INSTALLED CAPAICTY 100 100 100 100 100

(IN TERMS OF RS. IN LACS)

CAPACITY UTILIZATION 50% 60% 70% 80% 90%

JOB WORK CHARGES 50 60 70 80 90

(PSHM TRADING PRIVATE LTD.)

ANNEXURE; 12
STATEMENT OF CONSUMABLES

YEARS

IST IIND IIIRD IVTH VTH

INSTALLED CAPAICTY 100 100 100 100 100

(IN TERMS OF RS. IN LACS)

CAPACITY UTILIZATION 50% 60% 70% 80% 90%

JOB WORK CHARGES 50 60 70 80 90

CONUMABLES 7.5 9 10.5 12 13.5

(AVRAGAE CONSUMTION

15% OF JOB WORK)

STOCK OF CONSUMABLES 0.31 0.37 0.43 0.49 0.55

(15 DAYS)

(PSHM TRADING PRIVATE LTD.) ANNEXURE; 13

PROJECTION OF PERFOMANCE,PROFITABILITY AND REPAYMENTS

RTICULARS IST YEAR IIND YEAR IIRD YEAR IVTH YEAR VTH YEAR

B.Tnrnover

1. Turnover

Job Work Charges 50.00 60.00 70.00 80.00 90.00

Cost of Production

Consumables 7.50 9.00 10.50 12.00 13.50

Power & Fuel 3.00 3.30 3.63 3.99 4.39

Direct Labour 16.40 18.04 19.84 21.83 24.01

& Wages

Repair & 1.20 1.32 1.45 1.60 1.76

Maintenance

Annual Insurance 0.59 0.65 0.71 0.79 0.86

Premium

Depreciation

Direct Cost 29.97 33.46 37.18 41.14 45.36

Gross Profit 20.03 26.54 32.82 38.86 44.64

Ess:

Interest 3.00 2.40 1.80 1.20 0.60

Selling & 3.39 2.40 1.80 1.20 0.60

Administrative exp.

Profit before Taxation 13.64 20.29 26.69 32.84 38.70

& Partner’s Remuneration & Interest

Provision for Tax 4.59 6.83 8.98 11.05 13.03

Net Profit after 9.05 13.46 17.71 21.78 25.68

Taxation

Add: Depreciation 1.28 1.15 1.04 0.93 0.84

Cash Accrual 10.33 14.61 18.74 22.72 26.51

(PSHM TRADING PRIVATE LTD.) ANNEXURE; 14

BALANCE SHEET AS ON
 Amount (in Rs Lacs)
LIABILITIES IST IIND IIIRD IVTH VTH

YEAR YEAR YEAR YEAR YEAR

OPENING BALANCE OF CAPITAL A 0.00 32.70 43.16 56.86 73.65

Add: ADDITIONS DURING THE YE 26.65 - - - -

Add: PROFIT DURING THE YEAR 9.05 13.46 17.71 21.78 25.68

LESS: DRAWINGS DURING THE YE 3.00 3.00 4.00 5.00 5.00

CLOSING BALANCE OF CAPITAL A 32.70 43.16 56.86 73.65 94.32

SECURED LOANS

TERM LOAN AGAINST LAND, 24.00 18.00 12.00 6.00 0.00

BULDING, PLANT, MACHINERY

OTHER SHORT TERM LOAN - - - - -

CURRENT LIABILITES

SUNDRY CREDITORS FOR 0.03 0.03 0.04 0.04 0.05

PURCHASES

SUNDRY CREDITORS FOR 1.09 2.10 2.32 2.55 2.81

EXPENSES

58.63 63.29 71.22 82.24 97.18

ASSETS

FIXED ASSETS 52.75 51.47 50.32 49.28 48.35

LESS DEPRICIATION 1.28 1.15 1.04 0.93 0.84

W.D.V 51.47 50.32 49.28 48.35 47.51

CURRENT ASSETS

NVENTORIES 0.31 0.37 0.43 0.49 0.55

SUNDRY DEBTORS 2.05 2.47 2.88 3.29 3.70

CHASH & BANK BALANCES 3.30 8.64 17.13 28.61 43.92

SECURITY & PRE-OPERATIVE1.50 1.50 1.50 1.50 1.50

EXPENSES

TOTAL 58.63 63.29 71.22 82.24 97.18

(PSHM TRADING PRIVATE LTD.) ANNEXURE; 15

CASH FLOW STATEMENT
 Amount (in Lacs)
PARTICULARS IST IIND IIRD IVTH VTH

YEAR YEAR YEAR YEAR YEAR

A.SOURCE OF FUNDS

1. CASH ACCURAL (viz Net profit 16.64 22.69 28.49 34.04 39.30

Before Taxations and interest)

2. Increase in Capital 26.65 0.00 0.00 0.00 0.00

3. Depreciation 1.28 1.15 1.04 0.93 0.84

4. Increase in Long Term Loan 30.00 - - - -

6. Decrease in Pre-operative exp. - - - - -

7. Increase in Short Term Loan - - - - -

8. Increase in Working capital loans - - - - -

TOTAL SOURECE (A) 74.57 23.84 29.53 34.97 40.14

B. Disposition of Funds

1. Increase in Capital Expenditure 52.75 - - - -

2. Increase in Working Capital 0.44 0.27 0.25 0.23 0.21

3. Decrease in long term loan/ 6.00 6.00 6.00 6.00 6.00

Debentures - - - - -

4. Decrease in Short Term Loan - - - - -

5. Decrease in Working Capital Limit - - - - -

6. Interest Paid 3.00 2.40 1.80 1.20 0.60

7. Taxations 4.59 6.83 8.98 11.05 13.03

8. Drawings during the year 3.00 3.00 4.00 5.00 5.00

9. Security & Pre-operative Expenses 1.50 - - - -

TOTAL DISPOSITIONS 71.28 18.49 21.03 23.48 24.84

C. Opening Balance 0.00 3.30 8.64 17.13 28.61

D. Net Surplus (A-B) 3.30 5.34 8.49 11.49 15.30

E. Closing Balance 3.30 8.64 17.13 28.61 43.92

(PSHM TRADING PRIVATE LTD.) ANNEXURE; 16

CALCULATION OF BREAL EVEN POINT
PARTICULARS IST IIND IIRD IVTH VTH
 YEAR YEAR YEAR YEAR YEAR

A.JOB WORK 50.00 60.00 70.00 80.00 90.00

B.FIXED COSTS

1. Depreciation 1.28 1.15 1.04 0.93 0.84

3. Interest Paid 3.00 2.40 1.80 1.20 0.64

4.28 3.55 2.84 2.13 1.44

C.VARIABLE COSTS

1. Purchases of Consumables

2. Power & Fuel 3.00 3.30 3.63 3.99 4.39

3. Direct Labour & Wages 16.40 18.04 19.84 21.83 24.01

4. Repair & Maintenance 1.20 1.32 1.45 1.60 1.76

5. Selling, Administrative 3.39 3.86 4.33 4.83 5.33

& Other Exp. 23.99 26.52 29.26 32.25 35.49

I.P/V RATIO = (SALES-VARIABLE EXP)*100

SALES

= 52.03 55.81 58.20 59.69 60.56

II.BREAK EVEN POINT 8.22 6.36 4.87 3.57 2.33

FIXED COST

P/V RATIO

(PSHM TRADING PRIVATE LTD.) ANNEXURE; 17

DETAIL OF REPAYMENT OF TERM LOAN

TERM LOAN AGAINST LAND & BULDING WILL BE PAID WITH IN 5 YEARS AS PER
SCHEDULE GIVEN BELOW

IST IIND IIIRD IVTH VTH

YEAR YEAR YEAR YEAR YEAR

PRINCIPAL AMOUNT OUSTANDING

AT THE BEGINNING OF THE YEAR 30.00 24.00 18.00 12.00 6.00

AMOUNT PAID DURING THE YEAR 6 6 6 6 6

PRINCIPAL AMOUNT 24.00 18.00 12.00 6.00 0.00

OUTSTANDING AT THE YEAR END

(PSHM TRADING PRIVATE LTD.) ANNEXURE; 18

DETAIL OF REPAYMENT OF TERM LOAN & OTHER LOANS

TERM LOAN AGAINT LAND & BULDING WILL BE PAID IN 5 YEARS

AS PER SCHEDULE GIVEN BELOW:

IST IIND IIIRD IVTH VTH

YEAR YEAR YEAR YEAR YEAR

PRINCIPAL AMOUNT OUTSTANDING

AT THE BEGINNING OF THE YEAR 30.00 24.00 18.00 12.00 6.00

INTEREST PAYABLE 3.00 2.40 1.80 1.20 0.60

ON TERM LOAN & SHORT TERM LOAN

PRINCIPAL AMOUNT OUTSTANDING 24.00 18.00 12.00 6.00 0.00

AT THE END OF THE YEAR

TOTAL INTEREST PAYABLE 3.00 2.40 1.80 1.20 0.60

(PSHM TRADING PRIVATE LTD.) ANNEXURE; 19

DETAIL OF DEPRICIATION
 RATE OF IST IIND IIIRD IVTH VTH

DEP. YEAR YEAR YEAR YEAR YEAR

BUILDING 10%

W.D.V AT THE BEG. OF

THE YEAR 8.25 7.43 6.68 6.01 5.41

DEPRICIATION 0.83 0.74 0.67 0.60 0.54

W.D.V AT THE END OF

THE YEAR 7.43 6.68 6.01 5.41 4.87

OTHER ASSETS 10%

W.D.V AT THE BEG. OF 4.54 4.08 3.67 3.31 2.98

THE YEAR

DEPREICIATION 0.45 0.41 0.37 0.33 0.30

W.D.V AT THE END OF

THE YEAR 4.08 3.67 3.31 2.98 2.68

TOTAL DEPRICIATION 1.28 1.15 1.04 0.93 0.84

(PSHM TRADING PRIVATE LTD.) ANNEXURE; 20

DETAILS OF SELLING, ADMINISTRATIVE & OTHER EXP.

 (RS. IN LACS)

PARTICULARS IST IIND IIIRD IVTH VTH

YEAR YEAR YEAR YEAR YEAR

Salary 1.20 1.32 1.45 1.60 1.76

Travelling & Conveyance 0.10 0.12 0.14 0.16 0.18

Legal & Professional 0.20 0.20 0.20 0.20 0.20

Auditor’s Remuneration 0.25 0.25 0.25 0.25 0.25

Printing & Stationary 0.06 0.08 0.09 0.10 0.11

Postage Telegram & Telephone 0.03 0.03 0.04 0.04 0.05

Advertisement exp. 0.25 0.30 0.35 0.40 0.45

Business Promotion 0.30 0.36 0.42 0.48 0.54

General exp. 0.50 0.60 0.70 0.80 0.90

Freight Outward 0.50 0.60 0.70 0.80 0.90

TOTAL 3.39 3.86 4.33 4.83 5.33

(PSHM TRADING PRIVATE LTD.) ANNEXURE; 21

DETAILS OF PROVISION FOR TAXATION

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

Net Profit as per profit & 13.64 20.29 26.69 32.84 38.70

Loss A/c

Tax Payable 4.59 6.83 8.98 11.05 13.03