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EMINENT TEXTILES

Modipuram Meerut
Utter Pradesh.

PROJECT REPORT
Submitted by Mustafa Khan (2002362)

EMINENT TEXTILES , MEERUT


PROJECT REPORT

INDEX

CHAPTER

PARTICULARS

I-

INTRODUCTION
A- BACKGROUND
B- LOCATION
C- NATURE OF INDUSTRY

II-

BIO DATA OF THE PARTNERS

III-

ESTABLISHMENT
ABCDE-

IV -

LAND
BUILDING
PLANT AND MACHINERY
POWER
WATER

PAGE NUMBER

-1-1- 1- 2 to 3 -

-4-4- 4 to 5 -5-5-

OPERTIONAL ASPECTS
ABCDE-

RAW MATERIALS
MANUFACTURING PROCESS
MARKETING
MAN POWER
EFFLUENTS

-5- 5-6-6- 6-

CHAPTER

PARTICULARS

PAGE NUMBER

V-

PROJECT AT A GLANCE

-7-

VI-

PRESUMPTIONS

-8 -

VII-

DETAILS OF CAPACIATY

-9 -

VIII-

PROJECTIONS OF PERFORMANCE
PROFITABILITY

- 10 & 11 -

IX-

IMPORTANT RATIOS

- 12 -

X-

PROJECTED BALANCE SHEET

- 13 -

XI-

CASH FLOW STATEMENT

- 14 -

XII-

BREAK EVEN POINT

- 15 -

XIII-

DETAILED WORKING

- 16 TO 20

XIV-

STATEMENT OF WORKING CAPITAL

- 21-

EMINENT TEXTILES, MEERUT


PROJECT REPORT
CHAPTER I INTRODUCTION
A- BACKGROUND

Having been encouraged and inspired by the Utter Pradesh Agro Advantage
campaign launched by the Utter Pradesh Govt. we have decided to start a Industrial Unit.
We have given serious consideration to all the factors more particularly in the area of
upholstery fabric looking to their own experience, financial capacity, administrative
convenience, etc. and have concluded that Job Work of upholstery fabric is the most
suitable and lucrative proposition. Finally we have decided to set up a small scale unit for
upholstery fabric, especially drapes production.
B : LOCATION
The Project Holders after realizing the factors of availability of the raw materials,
transportation has selected a site on National Highway No. 58, situated at Modipuram
which is hardly 4 Kms away from Meerut. As Modipuram is a small village, it will be
beneficiary to the Industry as the entrepreneur will get labor, etc at cheaper rate. It is a
matter of fact that Meerut Division has gained the recognition of been one of the key
producer of yarn through Dewan Textile Mill, at Meerut.
The final product i.e., Drapes has nationwide demand from the customers itself as
it is a Consumable item.
B- NATURE OF INDUSTRY
The proposed unit will be classified as a SSI unit and therefore shall be entitled to
all concessions, incentives available from the State and Central Govt. The Project has
been got Provisional registered with the District Industries Centre, Garh. There is a
subsidy at 35% with a ceiling of Rs. 25lacs to the maximum along with a power subsidy
for SSI units at Rs. 3.5 per unit.

CHAPTER III ESTABLISHMENT


A LAND
The unit has proposed to acquire a plot ad-measuring 20000 square feet on lease
for 40 years. The Plot is situated on the National Highway No. 58 at Modipuram and is
well connected to the road. The Job Work is available in near by areas and easily be
brought up to the location through out the year. The plot is specious enough to house the
factory shade along with the shades for storing the raw materials & finished goods.
B- BUILDING
Factory Building Construction Cost is expected to arrive at Rs. 16.70 lacs .A
detailed building map along with estimated cost is enclosed herewith. (5000sqft,
300rs/sqft)
C- PLANT AND MACHINERY
We have planned to install a Rapier Loom Plant with an available advanced
technology being used in the Upholstery Industry. The following machinery is required
for Fabric Industry.
SR.
NO.
1

PARTICULARS

QTY.

Rapier Looms

RATE RS.
(000)
514.80

Jacquards

1580.00

Motors

Over Head Traveller

Erection charges

271.00

Electrification Charges

250.00

Contingencies, Transportation, Loading


and Unloading Charges

159.20

various
1

AMOUNT RS.
(000)
1544.40
4740.00
170.00

125.00

125.00

GRAND TOTAL RS. (000)

6230.00

D- POWER
The maximum power required will be about 100H.P. covering the installation of
motors, Water Pump, Domestic Electric requirement. The application for supply of power
to the unit has been already applied to U.P.S.E.B. and the same is principally agreed to
give the required load.

E- WATER
The total water requirement per day will be about 500 liters only. The same will
be supplied by existing tube well.
Humidification, blowers in summer,

CHAPTER IV OPERATIONAL ASPECTS

A- RAW MATERIAL
The main raw material for this unit is 10,00 end warpers beam and different
yarns which will be supplied by M/s Dewan Textile Mill, Meerut for their job work and
the rest would be purchased from the market. So as such there is no problem of basis raw
material required by the unit.

B-MANUFACTURING PROCESS
Manufacturing process requires the development of design and feeding the design
to the jacquard. Depending upon the requirement, yarns and process parameters will be
selected and warpers beam installed. Technical settings are done for the production
process and the fabric will be rolled onto a take up roller.
C MARKETING
We have ready market for drapes and upholstery purchases. We will have
arrangements with bulk purchasers like Garha Bhandar. So we will have work during the
whole year and we have not to trace any new job work since. We are going to supply
material to wholesale dealers and specially

D - MAN POWER
The Total Man Power requirement is as under:
1234-

Master
Helper
Supervisor
Labour

- 1 Nos
- 3 Nos
- 3 Nos
- 7 Nos

Man power for such work is locally available for which no additional requirement
is to be full filled by the unit.
E - EFFLUENTS
In fact there are no effluents which are hazardous to the environment. However
the unit has applied for Consent to Operate Certificate from Utter Pradesh Pollution
Control Board, Meerut.

EMINENT TEXTILES, MEERUT

CHAPTER - V - PROJECT AT A GLANCE


CAPACITY
:

295 KG PER DAY PER SHIFT OF 8 HOURS

UTILISED
:
CAPACITY
TURNOVER
( 3R YEAR
RS.(000) :
NORMAL
YEAR : OF
WORKING

98%

12081.31

THIRD YEAR

PROJECT COST
Amount
(Rs. 000)
1)

Land ( Lease Hold )

0.00

2)

Factory Building & Site Development

1670.00

3)

Plant & Machinery

6230.00

4)

Preoperative Expenses

100.00

5)

Margin Money for working capital

358.99

Total

8358.99

PROPOSED FINANCES
Amount
(Rs. 000)
Partner's Capital

2158.99

1)

Term Loan

5000.00

2)

Unsecured Loans

1200.00

3)
Total

8358.99
CHAPTER VI -

1)

Capacity

PRESUMPTIONS
:

295.00

Kgs. Per Shift Per Working day

2)

No of Shifts per day

3)

Capacity Utilisation

Single Yarn
I) 1st Year

94%

831.9

Kgs. Per day.

ii) 2nd Year

96%

849.6

Kgs. Per day.

iii) 3rd Year

98%

867.3

Kgs. Per day.

No. of working days p.a.

360

days .

No. of shifts per day.

shift.

5)

Working Hours Per day.

Hours

6)

Raw Materials :

Single Yarn

4)

I)

Availability

(a) 360 days


I) Rate : Per Kgs.

89.00

Single Yarn
7)

Sales Doubled Yarn


I) Rate : Per Kgs.

Doubled yarn
8)

9)

106.25

Job Work Rates


I) Rate : Per Kgs.

Doubled Yarn Job Work

17.25

ii ) Delivery .

Ex Factory - Meerut

iii) Realization

Per Kgs.

Month

Stocks
The Unit follows 31st March as its year end.
Days of
Stock Held

i) Single Yarn

30

days

at cost

30

days

at cost

a) Building

10%

b) Plant & Machinery

15%

ii) Stores Stock


10)

Basic of
Valuation.

Depreciation Method :

11)

Rate of Interest :
I) On Term Loan
ii) On Working Capital Loan
iii) Bridge Unsecured Loan & Deposits from friends
and relatives.

:
:

13.00%
13.00%

12)

Subsidy

:
:

12.00%
The release of subsidy is expected in five equa
instalments from second year onwards as per new
Industrial Policy of Utter Pradesh Govt.

13)

Normal Working Year

3rd year

CHAPTER VII - DETAILS OF CAPACITY

Unit

1st year

2nd year

3rd year

4th year

5th year

Kgs.

295.00

295.00

295.00

295.00

295.00

for Double Yarn

No' s

360

360

360

360

360

3)

No. of Shift

No' s

4)

No. of employees

( Including Workers )

No' s

11

11

11

11

11

General Staff

No' s

Kgs.

885.00

885.00

885.00

885.00

885.00

885.00

885.00

885.00

885.00

885.00

318600.00

318600.00

318600.00

318600.00

318600.00

318600.00

318600.00

318600.00

318600.00

318600.00

94%

96%

98%

98%

98%

1)

Installed Capacity Per day Per


Shift

2)

No. of Working days

Factory Staff

5)

Estimated Production Per day


i) Double Yarn
ii) Sub - Total (i)

6)

Estimated Annual Production


i) Double Yarn

7)

8)

9)

10)

11)

Kgs.

ii) Sub - Total (i)


Estimated output as percentage of
plant Capacity in %
Total Quantity
i) Double Yarn

Kgs.

299484.00

305856.00

312228.00

312228.00

312228.00

ii) Sub - Total (i)

Kgs.

299484.00

305856.00

312228.00

312228.00

312228.00

i) Double Yarn 25%

Kgs.

74871.00

76464.00

78057.00

78057.00

78057.00

ii) Sub - Total (i)

Kgs.

74871.00

76464.00

78057.00

78057.00

78057.00

i) Double Yarn 75%

Kgs.

224613.00

229392.00

234171.00

234171.00

234171.00

ii) Sub - Total (i)

Kgs.

224613.00

229392.00

234171.00

234171.00

234171.00

Rs.(000)

7955.04

8124.30

8293.56

8293.56

8293.56

Rs.(000)

7955.04

8124.30

8293.56

8293.56

8293.56

Sales Quantity

Job Work Quantity

Sales ( Amount ) ( Rs . 000 )


i) Double Yarn
0.10625
ii) Sub - Total (i)

12)

Job Work ( Amount ) ( Rs . 000 )


i) Double Yarn

0.01725

13)

Rs.(000)

3874.57

3957.01

4039.45

4039.45

4039.45

ii) Sub - Total (i)

Rs.(000)

3874.57

3957.01

4039.45

4039.45

4039.45

Total Sales ( Amount ) ( Rs. 000)

Rs.(000)

11829.62

12081.31

12333.01

12333.01

12333.01

CHAPTER VIII -PROJECTIONS OF PERFORMANCE, PROFITABILITY


AND REPAYMENT

(Rs.000)

Year
Percentage Utilisation of
installed capacity
A.

B.

1st

2nd

3rd

4th

94%

96%

98%

98%

11829.62

12081.31

12333.01

12333.01

0.00

0.00

0.00

0.00

11829.62

12081.31

12333.01

12333.01

7326.44

6819.40

6961.18

6947.07

99.83

101.95

104.08

104.08

2120.55

2165.67

2210.79

2210.79

Sales
1)

Sales and Job Work

2)

Less : Excise Duty

3)

Net Sales

Cost of Production
4)

Single Yarn

5)

Stores

6)

Power & Fuel

7)

Direct Labour & Wages

315.96

363.35

363.35

363.35

8)

Repairs & Maintenance

30.00

40.00

50.00

60.00

9)

Depreciation

1115.44

956.58

820.71

704.45

11008.22

10446.96

10510.10

10389.74

0.00

662.92

677.03

691.13

11008.22

11109.88

11187.12

11080.87

662.92

677.03

691.13

691.13

10345.30

10432.85

10495.99

10389.74

1484.32

1648.46

1837.01

1943.27

Total Cost of Production


9)
`
10)

Add : Opening stock in progress


and finished goods

Deduct : Closing stock in


progress and finished goods

C.

Cost of Sales

D.

Gross Profit ( A - C )

E.

Interest
i)

On Term Loans

643.75

562.50

462.50

362.50

ii)

Relatives and Friends

144.00

144.00

115.20

86.40

iii)

On Working Capital

140.01

143.99

146.69

146.48

927.76

850.49

724.39

595.38

F.

Selling & Administrative Exp.

236.59

241.63

246.66

246.66

G.

Profit Before Tax (D-(E+F)

319.97

556.34

865.97

1101.23

H.

Provision for Taxes

0.00

0.00

231.88

355.95

Net Profit (G-H)

319.97

556.34

634.09

745.28

J.

i)

1115.44

956.58

820.71

704.45

643.75

562.50

462.50

362.50

ii)

Depreciation added back


Interest on Term Loan added
back

K.

Total of I & J

L.

Repayment Obligations

2079.16

2075.42

1917.29

1812.22

i)

Towards proposed term loan

384.62

769.23

769.23

769.23

ii)

Interest on Term Loans

643.75

562.50

462.50

362.50

1028.37

1331.73

1231.73

1131.73

2.02

1.56

1.56

1.60

N.

Debts Service Coverage Ratio K ; L


Average Debts Service Coverage
Radio

Earning per rupee

0.15

0.26

0.29

0.35

Average Earning per rupee

0.37

Internal rate of return

2079.16

2075.42

1917.29

1812.22

Average Internal rate of return

1814.65

M.

1.75

CHAPTER VIII -PROJECTIONS OF PERFORMANCE, PROFITABILITY


AND REPAYMENT

(years 5-8)

Year

5th

Percentage Utilization of
installed capacity
A.

B.

6th

7th

8th

0%

0%

0%

0%

11829.62

11829.62

11829.62

11829.62

0.00

0.00

0.00

0.00

11829.62

11829.62

11829.62

11829.62

7326.44

7326.44

7326.44

7326.44

99.83

99.83

99.83

99.83

2120.55

2120.55

2120.55

2120.55

Sales
1)

Sales and Job Work

2)

Less : Excise Duty

3)

Net Sales

Cost of Production
4)

Single Yarn

5)

Stores

6)

Power & Fuel

7)

Direct Labour & Wages

315.96

315.96

315.96

315.96

8)

Repairs & Maintenance

10.00

20.00

30.00

40.00

9)

Depreciation

998.60

898.74

808.87

727.98

10871.38

10781.52

10701.64

10630.76

0.00

662.92

662.92

662.92

10871.38

11444.44

11364.56

11293.68

662.92

662.92

662.92

662.92

10208.46

10781.52

10701.64

10630.76

1621.16

1048.10

1127.97

1198.86

Total Cost of Production


9)
`
10)

Add : Opening stock in progress


and finished goods

Deduct : Closing stock in


progress and finished goods

C.

Cost of Sales

D.

Gross Profit ( A - C )

E.

Interest
i)

On Term Loans

4th

4th

4th

0.00

ii)

Relatives and Friends

262.50

162.50

0.00

0.00

iii)

On Working Capital

140.01

143.99

146.69

146.48

402.51

306.49

146.69

146.48

F.

Selling & Administrative Exp.

236.59

236.59

236.59

236.59

G.

Profit Before Tax (D-(E+F)

982.06

505.02

744.70

815.79

H.

Provision for Taxes

0.00

0.00

231.88

355.95

Net Profit (G-H)

982.06

505.02

512.82

459.84

J.

i)

998.60

898.74

808.87

727.98

ii)

Depreciation added back


Interest on Term Loan added
back

4th

4th

4th

0.00

K.

Total of I & J

L.

Repayment Obligations
i)

Towards proposed term loan

ii)

Interest on Term Loans

1980.66

1403.76

1321.69

#REF!

#REF!

#REF!

4th

M.

Debts Service Coverage Ratio K ; L

N.

Average Debts Service Coverage Radio

Earning per rupee

Average Earning per rupee

Internal rate of return

Average Internal rate of return

4th

4th

Debts Service
Coverage Ratio
(DSCR)

2.02

2nd
Year
1.56

0.00
0.00

#REF!

#REF!

#REF!

0.00

#REF!

#REF!

#REF!

0.00

0.45

0.23

0.24

0.21

1980.66

1403.76

1321.69

1187.82

CHAPTER IX - IMPORTANT RATIOS (year 1- 4)


1st Year

1187.82

3rd Year

4th Year

1.56

1.60

Average DSCR

1.75

Earning per rupee

0.15

0.26

0.29

0.35

2079.16

2075.42

1917.29

1812.22

Debt Equity Ratio

1.37

1.23

1.07

0.87

Current Ratio

1.93

2.58

3.16

3.77

Asset Cover

1.49

1.54

1.66

1.91

0.00

0.00

231.88

355.95

0.00

0.00

0.00

0.00

11829.62

12081.31

12333.01

12333.01

B.E.P. (Commercial)

88.47%

80.30%

69.87%

61.56%

% of installed
capacity

83.16%

77.09%

68.48%

60.33%

B.E.P. (CASH)

48.29%

46.43%

41.32%

36.97%

% of installed
capacity

45.39%

44.58%

40.49%

36.23%

Internal Rate of
Return

Contribution to Exchequer by way of


Direct Tax ( Rs.
000)
Indirect Tax ( Rs.
000)
Addition to Gross
Domestic Products
(Rs.000)

CHAPTER IX - IMPORTANT RATIOS (year 5-8)

5th Year

6th Year

7th Year

8th Year

Debts Service
Coverage Ratio
(DSCR)

1.67

1.90

1.92

0.00

0.40

0.50

0.50

0.54

1727.04

1766.30

1597.89

1541.90

Debt Equity Ratio

0.64

0.36

0.00

0.00

Current Ratio

4.39

5.10

5.60

6.60

Asset Cover

2.47

4.26

Average DSCR
Earning per rupee
Internal Rate of
Return

Contribution to Exchequer by way of


Direct Tax ( Rs.
000)
Indirect Tax ( Rs.
000)

460.14

439.85

627.21

673.33

0.00

0.00

0.00

0.00

12333.01

12333.01

12333.01

12333.01

B.E.P. (Commercial)

53.77%

46.44%

39.48%

35.19%

% of installed
capacity

52.70%

45.51%

38.69%

34.49%

B.E.P. (CASH)

32.58%

28.17%

23.72%

21.59%

% of installed
capacity

31.93%

27.60%

23.25%

21.16%

Addition to Gross
Domestic Products
(Rs.000)

CHAPTER X- PROJECTED BALANCE SHEET (year 1-4)


(RS.
000)
PARTICULARS

1st
Year

2nd
Year

3rd Year

4th Year

A
.

Liabilities
Partner's Capital
Profit & Loss
(Surplus)

2158.99

2158.99

2158.99

2158.99

319.97

876.31

1510.40

2255.68

500.00

1000.00

1500.00

Subsidy Reserve
Term Loans

4615.38

3846.15

3076.92

2307.69

Bank Borrowings
for working capital

1076.97

1107.62

1128.36

1126.78

Unsecured Loans

1200.00

960.00

720.00

480.00

Current Liabilities
& Provisions

432.93

415.91

424.61

424.30

9804.24

9864.99

10019.28

10253.44

Gross Block

8000.00

8000.00

8000.00

8000.00

Depreciation

1115.44

2072.03

2892.73

3597.18

Net block

6884.56

5927.97

5107.27

4402.82

Current Assets

1868.89

1892.74

1929.08

1926.67

Cash and Bank


Balance

1050.80

2044.27

2982.93

3923.94

Total :

9804.24

9864.99

10019.28

10253.44

Total
B
.

Assets

CHAPTER X- PROJECTED BALANCE SHEET (year 5-8)


(RS.
000)

PARTICULARS
A
.

5th Year

6th Year

7th Year

8th Year

Partner's Capital

2158.99

2158.99

2158.99

2158.99

Profit & Loss


(Surplus)

3115.27

4199.32

5287.93

6445.57

Subsidy Reserve

2000.00

2500.00

2500.00

2500.00

Term Loans

1538.46

769.23

0.00

0.00

Bank Borrowings
for working capital

1125.23

1123.90

1122.74

1121.75

Unsecured Loans

240.00

0.00

0.00

0.00

Current Liabilities
& Provisions

424.57

424.85

425.13

425.41

10602.53

11176.29

11494.79

12651.71

Gross Block

8000.00

8000.00

8000.00

8000.00

Depreciation

4202.12

4721.88

5168.66

5552.92

Net block

3797.88

3278.12

2831.34

2447.08

Current Assets

1924.88

1923.38

1922.12

1921.07

Cash and Bank


Balance

4879.77

5974.78

6741.33

8283.56

10602.53

11176.29

11494.79

12651.71

Liabilities

Total
B
.

Assets

Total :

CHAPTER XI -CASH FLOW STATEMENT


(Rs.
000)

PARTICULARS
A
.

1st Year

2nd
Year

3rd
Year

4th
Year

1247.73

1406.83

1590.35

1696.61

956.58

820.71

704.45

-21.13

5.91

(0.59)

500.00

500.00

500.00

1076.97

30.66

20.73

(1.57)

127.66

4.11

2.79

0.28

12232.06

2877.05

2940.49

2899.17

Sources of Funds
Cash accruals (viz. Net
Profit before taxation and
interest but after
depreciation
Induction of Partner's
Capital
Depreciation

2158.99
1115.44

Induction of Long Term


Loans
Induction of Unsecured
Loans
Increase in Sundry
Creditors

5000.00
1200.00
305.27

Subsidy from State Govt.


Increase in Bank
Borrowings for working
capital
Increase in Current
Liabilities
Total
B
.

Disposition of Funds
Increase in Capital
Expenditure

8000.00

Increase in Current Assets


Inventories

662.92

14.10

14.10

0.00

Receivables

985.80

20.97

20.97

0.00

Others

220.16

(11.23)

1.26

(2.41)

384.62

769.23

769.23

769.23

240.00

240.00

240.00

927.76

850.49

724.39

595.38

0.00

0.00

231.88

355.95

11181.26

1883.58

2001.84

1958.16

1050.80

2044.27

2982.93

Decrease in Long Term


Loans
Decrease in Unsecsured
Loans
Interest
Taxation
Distribution of Profit
Total
C
.
D
.
E.

Opening Balance
Net Surplus

1050.80

993.48

938.65

941.02

Closing Balance

1050.80

2044.27

2982.93

3923.94

CHAPTER XI -CASH FLOW STATEMENT

PARTICULARS

5th
Year

6th
Year

7th
Year

(Rs.
000)
8th
Year

A
.

Sources of Funds
Cash accruals (viz. Net
Profit before taxation and
interest but after
depreciation
Induction of Partner's
Capital

1786.11

1861.31

1924.28

1976.80

604.95

519.75

446.78

384.26

0.00

0.00

0.00

0.00

500.00

500.00

(1.55)

(1.34)

(1.15)

(1.00)

0.28

0.28

0.28

0.28

2889.78

2880.00

2370.18

2360.34

Inventories

0.00

0.00

0.00

0.00

Receivables

0.00

0.00

0.00

0.00

(1.79)

(1.50)

(1.26)

(1.05)

769.23

769.23

769.23

0.00

240.00

240.00

Interest

466.38

337.41

208.46

145.83

Taxation

460.14

439.85

627.21

673.33

1933.96

1784.99

1603.63

818.11

Opening Balance

3923.94

4879.77

5974.78

6741.33

Net Surplus

955.82

1095.01

766.55

1542.23

Closing Balance

4879.77

5974.78

6741.33

8283.56

Depreciation
Induction of Long Term
Loans
Induction of Unsecured
Loans
Increase in Sundry
Creditors
Subsidy from State Govt.
Increase in Bank
Borrowings for working
capital
Increase in Current
Liabilities
Total
B
.

Disposition of Funds
Increase in Capital
Expenditure
Increase in Current Assets

Others
Decrease in Long Term
Loans
Decrease in Unsecsured
Loans

Distribution of Profit
Total
C
.
D
.
E.

CHAPTER XII - BREAK EVEN ANALYSIS


Rs.
(000)
1st Year

2nd
Year

3rd Year

4th Year

AVERAGE CAPACITY
UTILIZATION
1)

SALES

2)

VARIABLE COST

Raw Material

ii

Stores

iii

Power & Fuel

iv

Repairs & Maintenance

On Working Capital

3)

CONTRIBUTION ( 1 - 2 )

4)

FIXED COST

94%

96%

98%

98%

11829.62

12081.31

12333.01

12333.01

6663.52

6805.30

6947.07

6947.07

99.83

101.95

104.08

104.08

2120.55

2165.67

2210.79

2210.79

30.00

40.00

50.00

60.00

140.01

143.99

146.69

146.48

9053.90

9256.91

9458.62

9468.42

2775.72

2824.41

2874.38

2864.59

Direct Labour & Wages

315.96

363.35

363.35

363.35

ii

On Term Loans

787.75

706.50

577.70

448.90

iii

Selling & Administrative


Exp.

236.59

241.63

246.66

246.66

iv

Depreciation

1115.44

956.58

820.71

704.45

2455.75

2268.06

2008.42

1763.36

B.E.P. (Commercial)

88.47%

80.30%

69.87%

61.56%

% of installed capacity

83.16%

77.09%

68.48%

60.33%

B.E.P. (CASH)

48.29%

46.43%

41.32%

36.97%

% of installed capacity

45.39%

44.58%

40.49%

36.23%

5)

6)

CHAPTER XII - BREAK EVEN ANALYSIS


Rs.
(000)
5th Year

6th Year

7th Year

8th Year

AVERAGE CAPACITY
UTILIZATION
1)

SALES

2)

VARIABLE COST

Raw Material

ii

Stores

iii

Power & Fuel

iv

Repairs & Maintenance

On Working Capital

3)

CONTRIBUTION ( 1 - 2 )

4)

FIXED COST

98%

98%

98%

98%

12333.01

12333.01

12333.01

12333.01

6947.07

6947.07

6947.07

6947.07

104.08

104.08

104.08

104.08

2210.79

2210.79

2210.79

2210.79

70.00

80.00

90.00

100.00

146.28

146.11

145.96

145.83

9478.22

9488.04

9497.89

9507.76

2854.79

2844.96

2835.11

2825.24

Direct Labour & Wages

363.35

363.35

363.35

363.35

ii

On Term Loans

320.10

191.30

62.50

0.00

iii

Selling & Administrative


Exp.

246.66

246.66

246.66

246.66

iv

Depreciation

604.95

519.75

446.78

384.26

1535.06

1321.07

1119.30

994.27

B.E.P. (Commercial)

53.77%

46.44%

39.48%

35.19%

% of installed capacity

52.70%

45.51%

38.69%

34.49%

B.E.P. (CASH)

32.58%

28.17%

23.72%

21.59%

% of installed capacity

31.93%

27.60%

23.25%

21.16%

5)

6)

CHAPTER XIII - DETAILED WORKING


Unit
A)

POWER AND FUEL


( Including Consumption )

1st year

2nd year

3rd year

4th year

5th year

1)

Units consumed per day at 100%


Capacity Utilisation

No's

2)

Capacity Utilisation

3)

Units Consumed Per day.

No's

4)

Annual Unit Consuption

No's (000)

5)

Rate per unit

Rs.

6)

Cost of Power

Rs. (000)

B)

DIRECT LABOUR AND WAGES

1)

Staff on Monthly Basis

2)

96%

98%

98%

98%

1682.98

1718.78

1754.59

1754.59

1754.59

605.87

618.76

631.65

631.65

631.65

3.50

3.50

3.50

3.50

3.50

2120.55

2165.67

2210.79

2210.79

2210.79

Master - i.e..1 x 4000

Rs.

48000

48000

48000

48000

48000

Supervisor 3 x 2000

Rs.

72000

72000

72000

72000

72000

Helper i.e. 3 x 1500

Rs.

54000

54000

54000

54000

54000

Rs.

141960

141960

141960

141960

141960

Rs.

315960

315960

315960

315960

315960

Rs. (000)

315.96

315.96

315.96

315.96

315.96

15% Benefits from 2nd year

Rs. (000)

0.00

47.394

47.394

47.394

47.394

onwards.

Rs. (000)

315.96

363.35

363.35

363.35

363.35

Labours on Daily Basis


7 x 26 x 65

3)

94%

(11830)

C- DEPRECIATION ON W.D.V. BASIS :


YEAR

LAND

BUILDING

COST /
WDV/
OPENING

DEPRECIATION

WDV
CLOSING

COST /
WDV/
OPENING

DEPRECIATION

WDV
CLOSING

10%
1st.

0.00

0.00

0.00

1691.14

169.11

1522.03

2nd.

0.00

0.00

0.00

1522.03

152.20

1369.82

3rd.

0.00

0.00

0.00

1369.82

136.98

1232.84

4th.

0.00

0.00

0.00

1232.84

123.28

1109.56

5th.

0.00

0.00

0.00

1109.56

110.96

998.60

6th.

0.00

0.00

0.00

998.60

99.86

898.74

7th.

0.00

0.00

0.00

898.74

89.87

808.87

8th.

0.00

0.00

0.00

808.87

80.89

727.98

PLANT & MACHINERY

TOTAL
DEPRECIATION

COST /
WDV/
OPENING

DEPRECIATION

WDV
CLOSING

15%
6308.86

946.33

5362.53

1115.44

5362.53

804.38

4558.15

956.58

4558.15

683.72

3874.43

820.71

3874.43

581.16

3293.26

704.45

3293.26

493.99

2799.28

604.95

2799.28

419.89

2379.38

519.75

2379.38

356.91

2022.48

446.78

2022.48

303.37

1719.10

384.26

D- DEPRECIATION ON W.D.V. BASIS :


FOR INCOME TAX CALCULATIONS

YEAR

BUILDING
COST /
WDV/
OPENING

DEPRECIATION

TOTAL
DEPRECIATION

PLANT & MACHINERY

WDV
CLOSING

COST /
WDV/
OPENING

DEPRECIATION

10%

WDV
CLOSING

25%

1st.

1691.14

169.11

1522.03

6308.86

1577.22

4731.65

1746.33

2nd.

1522.03

152.20

1369.82

4731.65

1182.91

3548.73

1335.11

3rd.

1369.82

136.98

1232.84

3548.73

887.18

2661.55

1024.17

4th.

1232.84

123.28

1109.56

2661.55

665.39

1996.16

788.67

5th.

1109.56

110.96

998.60

1996.16

499.04

1497.12

610.00

6th.

998.60

99.86

898.74

1497.12

374.28

1122.84

474.14

7th.

898.74

89.87

808.87

1122.84

280.71

842.13

370.58

8th.

808.87

80.89

727.98

842.13

210.53

631.60

291.42

E: INTEREST AND REPAYMENT OF LOANS :


Term loan Rs.

(Rs.000)
Repayment
in
Quarterly
instalments

5000.00
Interest on
quarterly basis
@

BALANCE
LOAN
RS. (000)

INSTALLMENT
OF
REPAYMENT
RS. (000)

INTEREST
RS. (000)

13.00%

YEAR

Quarter

1st

1st

5000.00

162.50

2nd

5000.00

162.50

3rd

5000.00

192.31

162.50

4th

4807.69

192.31

156.25

1st

4615.38

192.31

150.00

2nd

4423.08

192.31

143.75

3rd

4230.77

192.31

137.50

4th

4038.46

192.31

131.25

1st

3846.15

192.31

125.00

2nd

3653.85

192.31

118.75

3rd

3461.54

192.31

112.50

4th

3269.23

192.31

106.25

1st

3076.92

192.31

100.00

2nd

2884.62

192.31

93.75

3rd

2692.31

192.31

87.50

4th

2500.00

192.31

81.25

1st

2307.69

192.31

75.00

2nd

2115.38

192.31

68.75

3rd

1923.08

192.31

62.50

4th

1730.77

192.31

56.25

1st

1538.46

192.31

50.00

2nd

1346.15

192.31

43.75

3rd

1153.85

192.31

37.50

4th

961.54

192.31

31.25

1st

769.23

192.31

25.00

2nd

3rd

4th

5th

6th

7th

YEARLY
INTEREST

643.75

562.50

462.50

362.50

262.50

162.50

8th

2nd

576.92

192.31

18.75

3rd

384.62

192.31

12.50

4th

192.31

192.31

6.25

62.50

1st
2nd
3rd
4th

Long Term Unsecured Deposit

Working Capital Loan of

(Rs.000)

(Rs.000)

1200.00

1076.97

1st year

Bridge
Loan for
capital
subsidy
and
others
from
friends
and
relatives
@
BALANCE
LOAN
RS. (000)

12.00%

INSTALLMENT
OF
REPAYMENT
RS. (000)

INTEREST
RS. (000)

YEARLY
INTEREST

13.00%

BALANCE
LOAN
RS. (000)

INSTALLMENT
OF
REPAYMENT
RS. (000)

INTEREST
RS. (000)

1200.00

36.00

1076.97

35.0014

1200.00

36.00

1076.97

35.0014

1200.00

36.00

1076.97

35.0014

1200.00

36.00

1076.97

35.0014

1200.00

36.00

1107.62

35.9977

1200.00

36.00

1107.62

35.9977

1200.00

36.00

1107.62

35.9977

1107.62

35.9977

1200.00

240.00

36.00

144.00

144.00

960.00

28.80

1128.36

36.6716

960.00

28.80

1128.36

36.6716

960.00

28.80

1128.36

36.6716

1128.36

36.6716

960.00

240.00

28.80

115.20

720.00

21.60

1126.78

36.6205

720.00

21.60

1126.78

36.6205

720.00

21.60

1126.78

36.6205

1126.78

36.6205

720.00

240.00

21.60

86.40

480.00

14.40

1123.90

36.5266

480.00

14.40

1123.90

36.5266

480.00

14.40

1123.90

36.5266

1123.90

36.5266

480.00

240.00

14.40

57.60

240.00

7.20

1123.90

36.5266

240.00

7.20

1123.90

36.5266

240.00

7.20

1123.90

36.5266

YEARLY
INTEREST

140.01

143.99

146.69

146.48

146.11

240.00

240.00

7.20

28.80

1123.90

36.5266

1122.74

36.4892

1122.74

36.4892

1122.74

36.4892

1122.74

36.4892

1121.75

36.4568

1121.75

36.4568

1121.75

36.4568

1121.75

36.4568

146.11

145.96

145.83

F -CALCULATION OF PROVISION FOR INCOME TAX

Sr.
No.

PARTICULARS

2nd
Year

3rd
Year

319.97

556.34

1st Year

4th
Year

5th
Year

6th
Year

7th
Year

8th
Year

865.97

1101.23

1319.73

1523.90

1715.82

1830.97

PROFIT AS PER
PROFITABILITY
STATEMENT

ADD :
DEPRECIATION AS
PER
PROTITABILITY
STATEMENT

1115.44

956.58

820.71

704.45

604.95

519.75

446.78

384.26

LESS :
DEPRECIATION AS
PER INCOME TAX
ACT

1746.33

1335.11

1024.17

788.67

610.00

474.14

370.58

291.42

(310.92)

177.81

662.50

1017.00

1314.68

1569.51

1792.02

1923.81

ADJUSTED
PROFITS OR
LOSS()
ADD: CARRIED
FORWARD
LOSSES
PROFIT - LOSSES
BROUGHT
FORWARD

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

231.88

355.95

460.14

439.85

627.21

673.33

5
6

GROSS TOTAL
INCOME TAX

CHAPTER XIV -ASSESSMENT OF WORKING CAPITAL REQUIREMENTS

1)

1st
Year

2nd
Year

3rd
Year

4th
Year

5th
Year

6th
Year

7th
Year

8th
Year

662.92

677.03

691.13

691.13

691.13

691.13

691.13

691.13

Other consumable spares


( excluding those included
under item (I) above )

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Stock in Progress

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Finished Goods

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Receivables from parties

985.80

1006.78

1027.75

1027.75

1027.75

1027.75

1027.75

1027.75

Other current assets

220.16

208.94

210.20

207.79

206.00

204.50

203.24

202.19

1868.89

1892.74

1929.08

1926.67

1924.88

1923.38

1922.12

1921.07

305.27

284.14

290.05

289.46

289.46

289.46

289.46

289.46

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Accrued Expenses

68.51

71.36

72.89

73.17

73.45

73.73

74.00

74.28

Other Current Liabilities

59.15

60.41

61.67

61.67

61.67

61.67

61.67

61.67

432.93

415.91

424.61

424.30

424.57

424.85

425.13

425.41

1435.96

1476.83

1504.48

1502.38

1500.31

1498.53

1496.99

1495.66

358.99

369.21

376.12

375.59

375.08

374.63

374.25

373.92

1076.97

1107.62

1128.36

1126.78

1125.23

1123.90

1122.74

1121.75

140.01

143.99

146.69

146.48

146.28

146.11

145.96

145.83

CURRENT ASSETS
Raw materials (including
stores and other items used
in the process of
manufacture
a) Indigenous

Total Current Assets (1)


2)

CURRENT LIABILITIES
(Other than bank
borrowings for working
capital)
Creditors for purchase of
raw materials and stores
and consumable spares.
Advances from Customers

Total Current Liabilities (II)


3)

Working Capital Gap

4)

Margin on Working Capital

5)

Bank Finance (III-IV)

6)

Interest of Bank
13.00%