DETAILED PROJECT REPORT FOR

Abhay Corporation

Bus.Office:
Address
Plot No 239, 3rd Lane Vasant Market Yard
Sangli - 416416

This project has been designed to establish a Trading Concern at Sangli . It is a Proprietorship concern owned by Sou.Pavitra
Rajendra Bargal . The proprietor is having experience in this line of business.
 Abhay Corporation
Plot No 239, 3rd Lane Vasant Market Yard
Tal- Miraj Dist: Sangli - 416416.
I N D E X

SL. CONTENTS PAGES

CHAPTER :
1 PROJECT AT GLANCE 1
2 COST OF THE PROJECT AND MEANS OF FINANCE 2
3 PROJECTIONS AND PROFITABILITY STATEMENT 3
4 CASH - FLOW STATEMENT 4
5 BALANCE SHEET 5

ANNEXURES
1 DEPRECIATION SCHEDULE 6
2 BREAK EVEN ANALYSIS 7
3 INTEREST SCHEDULE 8
4 DEBT COVERAGE RATIO 9
5 ANALYSIS ON RETURN ON INVESTMENT 10
6 ASSUMPTION AND WORKING NOTES 11
Abhay Corporation
CHAPTER NO. 1
PROJECT AT GLANCE :
1 Name : Abhay Corporation
2 Address : Reg.Office:
Address
Plot No 239, 3rd Lane Vasant Market Yard
Sangli - 416416

3 Nature of Business : Retailer

4 Constitution : Proprietorship
Proprietor :

5 Cost of the project : (Rs. In Lakhs)

Particulars Total
Operational Cost 22.67
Furniture & Fittings 1.00
Machinery, Generator & Equipemnts 2.50
Deposits 0.20
Interest during the impl. Period 1.13
Total 27.50

Means of Finance :
Particulars Total
Proprietor Contribution 17.50
Term Loan from Bank / Institution 10.00

Total 27.50

6 Debt Equity Ratio : 0.57 :1

7 Debt Coverage Ratio : 2.64
8 Gross Profit Ratio : 13.17 First Year Operation.
9 Net Profit Ratio : 7.40 First Year Operation.
10 Employment Potential : 10
11 Return on Investment : 13.62 %

Page 4 of 11
Abhay Corporation
Plot No 239, 3rd Lane Vasant Market Yard
Tal- Miraj Dist: Sangli - 416416.

STATEMENT NO. 1

COST OF THE PROJECT AND MEANS OF FINANCE:

The project cost has been estimated at Rs. 27.5Lakhs

Brief details of the project cost is given below

Cost of the project : (Rs. In Lakhs)

Particulars Total
Operational Cost 22.67
Furniture & Fittings 1.00
Machinery, Generator & Equipemnts 2.50
Deposits 0.20
Interest during the impl. Period 1.13
Total 27.50

Means of Finance :
Particulars Total
Promoters Contribution 17.50
Term Loan from Bank / Institution 10.00
Total 27.50
Abhay Corporation
STATEMENT NO.2
PROJECTIONS AND PROFITABILITY STATEMENT In Lakhs
Operating years
PARTICULARS
1 2 3 4 5
A.INCOME:
Income from Business Activities 57.00 62.70 68.97 75.87 83.45

(The Sales are expected to increase by 10% every year)

57.00 62.70 68.97 75.87 83.45
B. EXPENSES:
Material Purchase Cost and Related cost
(After Adjusting closing stock) 45.60 50.16 55.18 60.69 66.76
Salary 3.12 3.28 3.44 3.61 3.79
Transpotation & Hamali 0.30 0.33 0.35 0.36 0.38
Depreciation 0.48 0.41 0.35 0.30 0.26
Cost of Operations 49.50 54.17 59.31 64.97 71.20

C. Gross Profit [ A - B ] 7.51 8.53 9.66 10.89 12.25

D. Interest: on term loan 1.13 0.94 0.73 0.47 0.18

1.13 0.94 0.73 0.47 0.18

E. Selling & Admin. Exp. 2.16 2.38 2.61 2.87 3.16

F. Profit before Tax[ C - (D+E) ] 4.22 5.21 6.32 7.55 8.91

G. Income Tax 0.17 0.27 0.38 0.51 0.64

H. Profit after Tax ( F-G ) 4.05 4.94 5.93 7.05 8.27

I. Depreciation added back 0.48 0.41 0.35 0.30 0.26

J. Cash Accruals ( H + I ) 4.52 5.35 6.29 7.35 8.53

L. Repayment of Term Loan 1.60 1.60 2.00 2.40 2.40

M. Net Cash A'ble (J - K)) 2.92 3.75 4.29 4.95 8.53

Abhay Corporation
STATEMENT No.3

CASH - FLOW STATEMENT :

Operating Years
PARTICULARS
1 2 3 4 5
A. Source of Funds :
Profit after Tax 4.05 4.94 5.93 7.05 8.27
Depreciation 0.48 0.41 0.35 0.30 0.26
Term Loan from Bank 10.00 -
Promoters Contribution 17.50 - - - -

TOTAL OF ' A ' 32.02 5.35 6.29 7.35 8.53

B. Application of Funds :
Furniture & Fittings 1.00 - - - -
Gen & Office Equipts, 2.50
Deposits 0.20
Repayment of loan 1.60 1.60 2.00 2.40 2.40

TOTAL OF ' B ' 5.30 1.60 2.00 2.40 2.40

C. Opening Balance - 26.72 30.47 34.76 39.71

D. Net surplus ( A - B ) 26.72 3.75 4.29 4.95 6.13

E. Closing Balance 26.72 30.47 34.76 39.71 45.84

Abhay Corporation
STATEMENT No.4

BALANCE SHEET

Operating Years
PARTICULARS
1 2 3 4 5

A. LIABILITIES :
Capital Account 17.50 17.50 17.50 17.50 17.50
Reserves & Surplus 4.05 8.99 14.92 21.97 30.24
Secured Loan 8.40 6.80 4.80 2.40 (0.00)

TOTAL 29.95 33.29 37.22 41.87 47.74

B. ASSETS :
Fixed Assets 3.03 2.62 2.26 1.96 1.70
Current Assets
Cash & Bank 26.72 30.47 34.76 39.71 45.84
Deposits 0.20 0.20 0.20 0.20 0.20
- - - -
TOTAL 29.95 33.29 37.22 41.87 47.74
Abhay Corporation

ANNEXURE NO.1

DEPRECIATION SCHEDULE:
WDV at the year end
PARTICULARS
1 2 3 4 5
1. Furniture & Fittings 1.00 0.90 0.81 0.73 0.66
Depreciation @ 10% 0.10 0.09 0.08 0.07 0.07
WDV 0.90 0.81 0.73 0.66 0.59

2.Utensils Genr & Office Equipts 2.50 2.13 1.81 1.54 1.31
Depreciation @ 15% 0.38 0.32 0.27 0.23 0.20
WDV 2.13 1.81 1.54 1.31 1.11

Total Assets
[1+2] 3.03 2.62 2.26 1.96 1.70

Total Depreciation
[1+2] 0.48 0.41 0.35 0.30 0.26
Abhay Corporation
ANNEXURE NO.2

BREAK-EVEN ANALYSIS
Years
1 2 3 4 5
A. Receipts 57.00 62.70 68.97 75.87 83.45

B. Variable cost: 49.50 54.17 59.31 64.97 71.20

D. Fixed costs:
Depreciation 0.48 0.41 0.35 0.30 0.26
Interest on Term Loan 1.13 0.94 0.73 0.47 0.18
Administration Expenses 2.16 2.38 2.61 2.87 3.16
3.76 3.72 3.69 3.65 3.60

E. Contribution [ B - A ] 7.51 8.53 9.66 10.89 12.25

F. P.V.Ratio [ E/A x 100 ] 13.17 13.60 14.00 14.36 14.68

G. Break - even [ Value ]

[ D / F x 100 ] 28.58 27.36 26.37 25.39 24.54

H. Cash Break Even 24.97 24.36 23.85 23.28 22.76

[ Without Depreciation]
Abhay Corporation
ANNEXURE NO.3

INTEREST SCHEDULE : (Rs. in Lakhs)

QUARTERS OPENING LOAN CLOSING INTEREST
BALANCE REPAYMENT BALANCE PER QTR.
I 1 10.00 0.40 9.60 0.30
2 9.60 0.40 9.20 0.29
3 9.20 0.40 8.80 0.28
4 8.80 0.40 8.40 0.26
II 1 8.40 0.40 8.00 0.25
2 8.00 0.40 7.60 0.24
3 7.60 0.40 7.20 0.23
4 7.20 0.40 6.80 0.22
III 1 6.80 0.50 6.30 0.20
2 6.30 0.50 5.80 0.19
3 5.80 0.50 5.30 0.17
4 5.30 0.50 4.80 0.16
IV 1 4.80 0.60 4.20 0.14
2 4.20 0.60 3.60 0.13
3 3.60 0.60 3.00 0.11
4 3.00 0.60 2.40 0.09
V 1 2.40 0.60 1.80 0.07
2 1.80 0.60 1.20 0.05
3 1.20 0.60 0.60 0.04
4 0.60 0.60 (0.00) 0.02

NOTE : Interest on Loan is calculated at 12% per annum liquidated in

5 year
(Rs. in Lakhs)
INTEREST
P.A.

1.13

0.94

0.73

0.47

0.18
Abhay Corporation
ANNEXURE NO.4

DEBT SERVICE COVERAGE RATIO :

Operating Years
1 2 3 4 5
A. SOURCES :
Profit after tax 4.05 4.94 5.93 7.05 8.27
Depreciation 0.48 0.41 0.35 0.30 0.26
Interest on term loan 1.13 0.94 0.73 0.47 0.18
TOTAL OF ' A ' 5.65 6.29 7.01 7.82 8.71

B DEBT :
Term loan installment 1.60 1.60 2.00 2.40 2.40
Interest on Term Loan 1.13 0.94 0.73 0.47 0.18

TOTAL OF ' B ' 2.73 2.54 2.73 2.87 2.58

C Debt Service Coverage Ratio

DSCR [A/B] 2.07 2.48 2.57 2.73 3.38

D Average DSCR 2.64

Abhay Corporation
ANNEXURE NO.5

ANALYSIS OF RETURN ON INVESTMENT :

1. Return on Investment = Average Return x 100

Capital Employed

2. Return = Profit before tax + Depreciation + Interest on term loan

3. Capital Employed = Cost of the Project

RETURN ON INVESTMENT :

OPERTING YEARS
PARTICULARS
1 2 3 4 5
Profit before tax 4.22 5.21 6.32 7.55 8.91

Depreciation 0.48 0.41 0.35 0.30 0.26

Interest on Term Loan 1.13 0.94 0.73 0.47 0.18

5.82 6.56 7.39 8.32 9.35

# Average Return 3.74

# Capital Employed 27.50

# Return on Investment 13.62 %

Abhay Corporation
ANNEXURE NO.6
Assumption and workings notes to the Financial Statements of the Project Report:
1 Revenue In Lakhs

Total Estimated Average sales Per Day Rs 19000/- :

Monthly Revenue ( 190000 *25 Days ) : 4.75
Yearly Revenue 57.00
Every year the Revenue is estimated to increase
by 10%.

2 Material Purchase Costs

The material is estimated to cost at 80% of sales price.
The cost for 1 year is 57.00*80% = 45.60Lakhs

3 Salary
S.No. Category of Employee No.of Salary per Salary per
Employees Month Annuam
1 Managers 1 6,000.00 72,000.00
2 Helpers 4 5,000.00 240,000.00
Total 5 312,000.00
Note: Increament in salary is taken at 5% per annum

4 Power
Transpotation & Hamali Charges is estimated at Rs.2500/- per month and provision made for increase
in rates @ 10% per annuam

5 Depreciation:
Depreciation is calculated at the rates prescribed under
the Income Tax Act. Separate Annexure made

6 Interest:
Interest on term loan is calculated at 12% per annum
Term loan will be repaid in 5 year

7 Selling and Administration Expenses:

Selling expenses includes sales commission, Post & Telephone expenses, transportaion On
Sale, godown rent & Office maintenance expenses Etc.
It is estimated at Rs.18,000/- per month and provision made for increase in cost
at 10% per annuam

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