Highlight of the project

Name BAHUBALI INDUSTRIES

Status Proprietorship Concern
Proposed Project Setting up of a plant for manufacturing
agarbattis and its allied products
Cost of the Proposed 27.00
Project
Means of Finance Term Loan 16.00
Promoter's Contribution 11.00
Turnovers 1st Year 108.46
2nd Year 131.92
3rd Year 152.32
4th Year 162.86
5th Year 173.06
6th Year 183.26
Net Profit Ratio 1st Year 8.73%
2nd Year 10.35%
3rd Year 11.52%
4th Year 12.17%
5th Year 12.72%
6th Year 13.17%
Finance Assisstance Term Loan 16.00
Seeked Working Capital Loan 6.00
Average DSCR 5.52
Break Even Point 1st Year 40.63
2nd Year 31.04
3rd Year 24.15
4th Year 20.22
5th Year 16.93
6th Year 14.23
Capacity Utilisation 1st Year 60%
2nd Year 65%
3rd Year 75%
4th Year 80%
5th Year 85%
6th Year 90%
BAHUBALI INDUSTRIES
UNIT : MANUFACTURING OF AGARBATTIS AND ITS ALLIED PRODUCTS
ANNEXURE - I

CAPITAL COST OF THE PROJECT / MEANS OF FINANCE

SL. NO. PARTICULARS % Appendix Rs in lakhs

1 Land & Site Development Owned

2 Plant & Machinery 1 23.01

3 Preliminary & Pre-operative Expenses 2 0.74

4 Margin Capital for Working Capital 5 2.45
5 Electrical Installation 0.80

Total 27.00

Means of Finance

1 Term Loan from Financial Institution 59.00 3 16.00

2 Owners Equity & Quasi Equity 41.00 4 11.00

Total 100.00 27.00

Note:- It is to be noted that subsidy of 60% is available for the project under the National Bamboo Mission.
BAHUBALI INDUSTRIES
UNIT: MANUFACTURING OF AGARBATTIS AND ITS ALLIED PRODUCTS
ANNEXURE - II

PROJECTED BALANCE SHEET

Rs in lakhs
SOURCES OF FUND App/A 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year
nn
Capacity Utilization 60% 65% 75% 80% 85% 90%

Owners Equity & Quasi Equity 4 11.00 11.00 11.00 11.00 11.00 11.00
Less: Drawings during the Yr 4.00 6.00 8.00 10.00 10.00 11.00

Reserve & Surplus 9.47 23.12 40.67 60.50 82.51 106.64

Term Loan 3 14.74 12.02 9.02 5.68 1.99 0.00

Working Capital Loan 5 6.00 6.00 6.00 6.00 6.00 6.00

Total 37.21 46.14 58.69 73.18 91.50 112.63

APPLICATIONS OF FUND APD 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year

Fixed Assets (A)

Gross Block 6 23.75 23.75 23.75 23.75 23.75 23.75
Less : Depreciation 6 3.56 6.59 9.16 11.35 13.21 14.79
Capital Work in Progress 5.00 14.00 21.00 30.00 40.00 60.00
Electrical Installation 0.80 0.80 0.80 0.80 0.80 0.80

Balance (A) 25.99 31.96 36.39 43.20 51.34 69.76

Net Working Capital (B)

Sundry Debtors 5 8.68 10.55 12.19 13.03 13.84 14.66
Inventory 7 8.74 10.33 11.92 12.72 13.51 14.31
Cash & Bank Balance IV 2.77 3.34 9.77 16.52 25.85 27.72
Less:Provision for Tax 0.00 0.00 0.00 0.00 0.00 0.00
Less: Sundry Creditors 5 8.98 10.05 11.58 12.29 13.06 13.82
Balance (B) 11.22 14.18 22.30 29.98 40.16 42.87

TOTAL (A+B) 37.21 46.14 58.69 73.18 91.50 112.63

BAHUBALI INDUSTRIES

UNIT: MANUFACTURING OF AGARBATTIS AND ITS ALLIED PRODUCTS

ANNEXURE - III

PROJECTED PROFITABILITY STATEMENT

Rs in lakhs
SL. PARTICULARS ANN 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year
NO Annual Sales (Kg) 1.60 1.94 2.24 2.40 2.55 2.70
Capacity Utilisation 60% 65% 75% 80% 85% 90%
No. of months 12 12 12 12 12 12

(A) Sales of Finished Goods 8 108.46 131.92 152.32 162.86 173.06 183.26
Increase/Decrease in
Inventory 3.13 0.57 0.57 0.28 0.28 0.28
111.59 132.49 152.89 163.14 173.34 183.54
(B) COST OF GOODS SOLD
Cost of Production 9 94.04 111.13 128.23 136.78 145.33 153.88

(C) GROSS PROFIT ( A - B ) 17.56 21.36 24.66 26.36 28.02 29.67

(D) INDIRECT EXPENSES

Selling, General &
Administrative Expenses 10 2.30 2.68 2.82 2.97 3.12 3.28
Depreciation 6 3.56 3.03 2.57 2.19 1.86 1.58

Financial Charges (Term

Loan) 3 1.61 1.39 1.09 0.77 0.41 0.06

Financial Charges (Working

Capital Loan Int) 5 0.62 0.62 0.62 0.62 0.62 0.62

Total (D) 8.09 7.70 7.10 6.54 6.01 5.54

NET PROFIT BEFORE
(E) TAX (C - D) 9.47 13.65 17.55 19.83 22.01 24.13

(F) Tax (F) 0.00 0.00 0.00 0.00 0.00 0.00

(G) NET PROFIT AFTER TAX (E- F) 9.47 13.65 17.55 19.83 22.01 24.13

Note : It is assumed that selling prices rise sufficiently to neutralise the effect of rise in prices of raw materials.

Profit Trend

22.01
19.83
17.55
Amt in Lakhs

13.65

9.47

1 2 3 4 5
Year
BAHUBALI INDUSTRIES
UNIT: MANUFACTURING OF AGARBATTIS AND ITS ALLIED PRODUCTS
ANNEXURE - IV

PROJECTED CASH FLOW STATEMENT

Rs in lakhs
SOURCES OF CASH Constr 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year
uction
Period
60% 65% 75% 80% 85% 90%

Net Profit before

Depreciation,Interest & Tax 15.26 18.68 21.84 23.40 24.90 26.38
Owners Equity & Quasi Equity 11.00 0.00 0.00 0.00 0.00 0.00 0.00
Increase in Creditors 8.98 1.07 1.53 0.71 0.76 0.77
BANK BORROWINGS
Term Loan 16.00 0.00 0.00 0.00 0.00 0.00 0.00
Provision for Tax 0.00 0.00 0.00 0.00 0.00 0.00
Working Capital Loan 0.00 6.00 0.00 0.00 0.00 0.00 0.00
Total 27.00 30.23 19.75 23.37 24.11 25.66 27.15

APPLICATIONS OF CASH 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year

Fixed Assets 23.01 0.00 0.00 0.00 0.00 0.00 0.00

Capital Work in Progress 0.00 5.00 9.00 7.00 9.00 10.00 20.00
Preliminary & Pre-operative
Expenses 0.74 0.00 0.00 0.00 0.00 0.00 0.00
Proprietor's Drawings 0.00 4.00 2.00 2.00 2.00 0.00 1.00
Electric Installation 0.80 0.00 0.00 0.00 0.00 0.00 0.00
Repayment of Term Loan 0.00 1.26 2.72 3.01 3.33 3.69 1.99
Repayment of W C Loan 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Tax Payment 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Repayment of Interests 0.00 2.23 2.00 1.71 1.39 1.03 0.67
Increase in Current Assets
Raw Materials, Finished Stock
& Packing Materials 8.74 1.59 1.59 0.79 0.79 0.79
Sundry Debtors 0.00 8.68 1.88 1.63 0.84 0.82 0.82

Total 24.55 29.91 19.18 16.94 17.36 16.33 25.28

Opening Cash Balance 0.00 2.45 2.77 3.34 9.77 16.52 25.85

Net Cash Inflow during the year 2.45 0.33 0.57 6.43 6.76 9.33 1.87
Closing Cash Balance 2.45 2.77 3.34 9.77 16.52 25.85 27.72
BAHUBALI INDUSTRIES
UNIT: MANUFACTURING OF AGARBATTIS AND ITS ALLIED PRODUCTS
ANNEXURE - V

BREAK-EVEN POINT ANALYSIS

Rs in lakhs
Sl.No. Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year
60% 65% 75% 80% 85% 90%
Output (in Kg) 165000 195000 225000 240000 255000 270000
(A) SALES 108.46 131.92 152.32 162.86 173.06 183.26
Increase Decrease In Inventory 3.13 0.57 0.57 0.28 0.28 0.28
(B) VARIABLE COST
Cost of Production 94.04 111.13 128.23 136.78 145.33 153.88
Selling Expenses (25 % Variable) 0.57 0.67 0.71 0.74 0.78 0.82

Total (B) 94.61 111.80 128.94 137.52 146.11 154.70

(C) CONTRIBUTION (A - B) 16.98 20.69 23.95 25.62 27.24 28.85

(D) FIXED COST

Selling Expenses (75 % Fixed) 1.72 2.01 2.12 2.22 2.34 2.46
Depreciation 3.56 3.03 2.57 2.19 1.86 1.58
Financial Charges (Term Loan) 1.61 1.39 1.09 0.77 0.41 0.06

Total (E) 6.90 6.42 5.78 5.18 4.61 4.10

(E) PROFIT ( C - D ) 10.08 14.27 18.17 20.44 22.62 24.74

(F) PROFIT VOLUME RATIO (P/V

RATIO) (IN %)
[C / A * 100] 15.66 15.68 15.73 15.73 15.74 15.74

(G) BREAK - EVEN POINT

IN VALUE (D / F ) 44.07 40.94 36.78 32.94 29.31 26.07
IN VOLUME (Kg) 67042 60523 54333 48538 43181 38415
IN PERCENTAGE ( G / A * 100 ) 40.63 31.04 24.15 20.22 16.93 14.23
BAHUBALI INDUSTRIES

UNIT: MANUFACTURING OF AGARBATTIS AND ITS ALLIED PRODUCTS

ANNEXURE - VI

FINANCIAL INDICATORS :

CALCULATION OF NET PROFIT RATIO

(Rupees in Lakhs)
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year 6th year

Net Profit After Tax 9.47 13.65 17.55 19.83 22.01 24.13

Sales 108.46 131.92 152.32 162.86 173.06 183.26

Net Profit Ratio 8.73% 10.35% 11.52% 12.17% 12.72% 13.17%

CALCULATION OF DEBT SERVICE COVERAGE RATIO:

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year 6th year

A. DISPOSAL OF SURPLUS

Net Profit After Tax 9.47 13.65 17.55 19.83 22.01 24.13

Interest on Loan 2.23 2.00 1.71 1.39 1.03 0.67

Depreciation 3.56 3.03 2.57 2.19 1.86 1.58

Total 15.26 18.68 21.84 23.40 24.90 26.38

B. LOAN COMPONENT

Term Loan payable 1.26 2.72 3.01 3.33 3.69 1.99

per year

Interest payable per yr 2.23 2.00 1.71 1.39 1.03 0.67

per year

Total 3.49 4.72 4.72 4.72 4.72 2.67

DSCR ( A/B ) 4.38 3.96 4.63 4.96 5.28 9.89

Average DSCR 5.52

BAHUBALI INDUSTRIES

UNIT: MANUFACTURING OF AGARBATTIS AND ITS ALLIED PRODUCTS

ANNEXURE - VI

FINANCIAL INDICATORS :

CALCULATION OF INTERNAL RATE OF RETURN

Year Net Cash Partner's Repayme Capital Total

Inflow Drawings nt of loan WIP
& Interest

Cost of the Project (27.00)

1st Year 0.33 4.00 3.49 5.00 12.81
2nd Year 0.57 2.00 4.72 9.00 16.28
3rd Year 6.43 2.00 4.72 7.00 20.14
4th Year 6.76 2.00 4.72 9.00 22.48
5th Year 9.33 0.00 4.72 10.00 24.05
6th Year 25.85 0.00 0.00 0.00 25.85

Internal Rate of return 58.99%

CALCULATION OF DEBT EQUITY RATIO:

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year 6th year

A. Total Debt

Term Loan 14.74 12.02 9.02 5.68 1.99 (0.00)

Total 14.74 12.02 9.02 5.68 1.99 (0.00)

B. EQUITY

Partner's Capital A/c 11.00 11.00 11.00 11.00 11.00 11.00

Total 11.00 11.00 11.00 11.00 11.00 11.00

DE Ratio ( A/B ) 1.34 1.09 0.82 0.52 0.18 (0.00)

Average 0.79
BAHUBALI INDUSTRIES

UNIT: MANUFACTURING OF AGARBATTIS AND ITS ALLIED PRODUCTS

ANNEXURE - VI

FINANCIAL INDICATORS :

CALCULATION OF TOL/TNW RATIO:

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year 6th year

A. Total Outside Liability

Term Loan 14.74 12.02 9.02 5.68 1.99 (0.00)

Sundry Creditors 8.98 10.05 11.58 12.29 13.06 13.82

Total 23.72 22.07 20.59 17.97 15.05 13.82

B. Total Net Worth

Partner's Capital A/c 11.00 11.00 11.00 11.00 11.00 11.00

Total 11.00 11.00 11.00 11.00 11.00 11.00

TOL/TNW Ratio ( A/B ) 2.16 2.01 1.87 1.63 1.37 1.26

Average 1.81

CALCULATION OF PAYBACK PERIOD

Year Net Profit Depreciat Net Cash Cumulative Cash Inflow
ion Inflow

1st Year 9.47 3.56 13.03 13.03

2nd Year 13.65 3.03 16.68 29.71
3rd Year 17.55 2.57 20.13 49.84
4th Year 19.83 2.19 22.01 71.85
5th Year 22.01 1.86 23.87 95.72
6th Year 24.13 1.58 25.71 121.43
Cost of the Project 27.00
Pay Back Period 2.0 years

CALCULATION OF FIXED ASSETS COVERAGE RATIO

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year 6th year

NET BLOCK 25.99 31.96 36.39 43.20 51.34 69.76

TOTAL DEBT OUTSTANDING 14.74 12.02 9.02 5.68 1.99 (0.00)

FACR 1.76 2.66 4.04 7.60 25.78 0.53

Average FACR 7.06

BAHUBALI INDUSTRIES
UNIT: MANUFACTURING OF AGARBATTIS AND ITS ALLIED PRODUCTS
APPENDIX -1

PLANT & MACHINERY

Rs. In Lakhs
Sr Particulars Qty Rate Amt Amt
No

1 Incense Making Machine Model HT 01 20 0.85 17.00

17.00

2 Raw Incense Sticks Drying Fan 1 1.00 1.00

1.00

3 Mixer Machine 2 0.75 1.50

1.50
TOTAL 19.50
Add: GST @ 18% 3.51
GRAND TOTAL 23.01

APPENDIX -2

PRELIMINERY & PREOPERATIVE EXPENSES

Rs in
Particulars lakhs

Market Survey & DPR Preparation 0.44

Travelling & Conveyance 0.25

Miscelleneous Expenses 0.05

Total 0.74
BAHUBALI INDUSTRIES
UNIT: MANUFACTURING OF AGARBATTIS AND ITS ALLIED PRODUCTS
APPENDIX -3

REPAYMENT SCHEDULE
(Amount in Lacs)
Loan Amount 16.00
Int 10.25%
Period 60 Months

Month Installment Principal Interest Installment Total Balance

No Outstanding paid Repayment
Apr-20 1 16.00 0.14 - - 16.00
May-20 2 16.00 0.14 - - 16.00
Jun-20 3 16.00 0.14 - - 16.00
Jul-20 4 16.00 0.14 - - 16.00
Aug-20 5 16.00 0.14 - - 16.00
Sep-20 6 16.00 0.14 - - 16.00
Oct-20 7 16.00 0.14 0.21 0.34 15.79
Nov-20 8 15.79 0.13 0.21 0.34 15.59
Dec-20 9 15.59 0.13 0.21 0.34 15.38
Jan-21 10 15.38 0.13 0.21 0.34 15.17
Feb-21 11 15.17 0.13 0.21 0.34 14.96
Mar-21 12 14.96 0.13 0.21 0.34 14.74
Apr-21 13 14.74 0.13 0.22 0.34 14.53
May-21 14 14.53 0.12 0.22 0.34 14.31
Jun-21 15 14.31 0.12 0.22 0.34 14.09
Jul-21 16 14.09 0.12 0.22 0.34 13.87
Aug-21 17 13.87 0.12 0.22 0.34 13.64
Sep-21 18 13.64 0.12 0.23 0.34 13.42
Oct-21 19 13.42 0.11 0.23 0.34 13.19
Nov-21 20 13.19 0.11 0.23 0.34 12.96
Dec-21 21 12.96 0.11 0.23 0.34 12.73
Jan-22 22 12.73 0.11 0.23 0.34 12.50
Feb-22 23 12.50 0.11 0.24 0.34 12.26
Mar-22 24 12.26 0.10 0.24 0.34 12.02
Apr-22 25 12.02 0.10 0.24 0.34 11.79
May-22 26 11.79 0.10 0.24 0.34 11.54
Jun-22 27 11.54 0.10 0.24 0.34 11.30
Jul-22 28 11.30 0.10 0.25 0.34 11.06
Aug-22 29 11.06 0.09 0.25 0.34 10.81
Sep-22 30 10.81 0.09 0.25 0.34 10.56
BAHUBALI INDUSTRIES
UNIT: MANUFACTURING OF AGARBATTIS AND ITS ALLIED PRODUCTS
APPENDIX -3

REPAYMENT SCHEDULE
(Amount in Lacs)
Oct-22 31 10.56 0.09 0.25 0.34 10.31
Nov-22 32 10.31 0.09 0.25 0.34 10.05
Dec-22 33 10.05 0.09 0.26 0.34 9.80
Jan-23 34 9.80 0.08 0.26 0.34 9.54
Feb-23 35 9.54 0.08 0.26 0.34 9.28
Mar-23 36 9.28 0.08 0.26 0.34 9.02
Apr-23 37 9.02 0.08 0.26 0.34 8.75
May-23 38 8.75 0.07 0.27 0.34 8.48
Jun-23 39 8.48 0.07 0.27 0.34 8.21
Jul-23 40 8.21 0.07 0.27 0.34 7.94
Aug-23 41 7.94 0.07 0.27 0.34 7.67
Sep-23 42 7.67 0.07 0.28 0.34 7.39
Oct-23 43 7.39 0.06 0.28 0.34 7.11
Nov-23 44 7.11 0.06 0.28 0.34 6.83
Dec-23 45 6.83 0.06 0.28 0.34 6.55
Jan-24 46 6.55 0.06 0.29 0.34 6.26
Feb-24 47 6.26 0.05 0.29 0.34 5.97
Mar-24 48 5.97 0.05 0.29 0.34 5.68
Apr-24 49 5.68 0.05 0.29 0.34 5.39
May-24 50 5.39 0.05 0.30 0.34 5.09
Jun-24 51 5.09 0.04 0.30 0.34 4.79
Jul-24 52 4.79 0.04 0.30 0.34 4.49
Aug-24 53 4.49 0.04 0.30 0.34 4.19
Sep-24 54 4.19 0.04 0.31 0.34 3.88
Oct-24 55 3.88 0.03 0.31 0.34 3.58
Nov-24 56 3.58 0.03 0.31 0.34 3.26
Dec-24 57 3.26 0.03 0.31 0.34 2.95
Jan-25 58 2.95 0.03 0.32 0.34 2.63
Feb-25 59 2.63 0.02 0.32 0.34 2.31
Mar-25 60 2.31 0.02 0.32 0.34 1.99
Apr-25 61 1.99 0.02 0.32 0.34 1.67
May-25 62 1.67 0.01 0.33 0.34 1.34
Jun-25 63 1.34 0.01 0.33 0.34 1.01
Jul-25 64 1.01 0.01 0.33 0.34 0.68
Aug-25 65 0.68 0.01 0.34 0.34 0.34
Sep-25 66 0.34 0.00 0.34 0.34 (0.00)
BAHUBALI INDUSTRIES

UNIT: MANUFACTURING OF AGARBATTIS AND ITS ALLIED PRODUCTS

APPENDIX -4

SHARE CAPITAL

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year 6th year

Opening Balance 0.00 7.00 5.00 3.00 1.00 1.00

Owner's & Quasi Equity 11.00 0.00 0.00 0.00 0.00 0.00

TOTAL 11.00 7.00 5.00 3.00 1.00 1.00

Less: Drawings 4.00 2.00 2.00 2.00 0.00 1.00

Closing Balance 7.00 5.00 3.00 1.00 1.00 0.00

BAHUBALI INDUSTRIES

UNIT: MANUFACTURING OF AGARBATTIS AND ITS ALLIED PRODUCTS

APPENDIX -5

ESTIMATED REQUIREMENT OF WORKING CAPITAL

Rs in lakhs
Particulars Days 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year
60% 65% 75% 80% 85% 90%

Raw Materials 20 5.61 6.63 7.65 8.16 8.67 9.18

Finished Goods 10 3.13 3.70 4.27 4.56 4.84 5.13

Sundry Debtors 24 8.68 10.55 12.19 13.03 13.84 14.66

17.42 20.89 24.11 25.75 27.36 28.97

Less: Sundry Creditors 30 8.98 10.05 11.58 12.29 13.06 13.82

Working Capital Requirement 8.45 10.84 12.53 13.46 14.30 15.15

Bank Finance 6.00 6.00 6.00 6.00 6.00 6.00

Margin for Working Capital 2.45 4.84 6.53 7.46 8.30 9.15

Interest on Working 0.62 0.62 0.62 0.62 0.62 0.62

Capital Loan @ 10.25%

Calculation of Creditors

Particulars Days 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year
Closing Stk of RM 5.61 6.63 7.65 8.16 8.67 9.18
Add: Consumption 84.15 99.45 114.75 122.40 130.05 137.70
Less: Op Stk 0.00 5.61 6.63 7.65 8.16 8.67
Net Purchases 89.76 100.47 115.77 122.91 130.56 138.21
Creditors of Raw Materials 30 8.98 10.05 11.58 12.29 13.06 13.82
BAHUBALI INDUSTRIES
UNIT: MANUFACTURING OF AGARBATTIS AND ITS ALLIED PRODUCTS
APPENDIX -6

DEPRECIATION
Rs in lakhs

Pre-
operative Rate of 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year
Cost Total Depreci
Sl.No. Particulars Cost Allocated Cost ation
Depr WDV Depr WDV Depr WDV Depr WDV Depr WDV Depr WDV

1 Plant & Machinery 23.01 0.74 23.75 15.00% 3.56 20.19 3.03 17.16 2.57 14.59 2.19 12.40 1.86 10.54 1.58 8.96

TOTAL 23.01 0.74 23.75 3.56 20.19 3.03 17.16 2.57 14.59 2.19 12.40 1.86 10.54 1.58 8.96

APPENDIX-7

INVENTORY
Rs in lakhs
PARTICULARS DAYS 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year

Raw Materials 20 5.61 6.63 7.65 8.16 8.67 9.18

Finished Goods 10 3.13 3.70 4.27 4.56 4.84 5.13

Total 8.74 10.33 11.92 12.72 13.51 14.31

BAHUBALI INDUSTRIES
UNIT: MANUFACTURING OF AGARBATTIS AND ITS ALLIED PRODUCTS
APPENDIX -8

Calculation of Net Selling Qty of Finished goods &

Annual Turnover

Estimates of Sales Realisation

Item Qty (kgs in Rate Rs in Qty in
Lakhs) Lacs Kg
(Lakhs)
Raw Agarbattis
9 inch long 3.00 68.00 204.00 3.00

Total 3.00 68.00 204.00 3.00

Average Factor Price Per Ltr 68.00

Note: Average Factor Price has been used for ease of calculation

1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year

No. of months 12 12 12 12 12 12

60% 65% 75% 80% 85% 90%

Actual Production (Lakh kg) 1.65 1.95 2.25 2.40 2.55 2.70
Less: Closing Stock (Lakh kg) 0.06 0.07 0.08 0.08 0.09 0.09
Add: Opening Stock 0.00 0.06 0.07 0.08 0.08 0.09
Net Selling Quantity Lakh kg) 1.60 1.94 2.24 2.40 2.55 2.70
Break up Selling Quantity
Average Selling Price per kg 68.00 68.00 68.00 68.00 68.00 68.00

Total Annual Sales Realisation 108.46 131.92 152.32 162.86 173.06 183.26
BAHUBALI INDUSTRIES
UNIT: MANUFACTURING OF AGARBATTIS AND ITS ALLIED PRODUCTS
APPENDIX -9

COST OF PRODUCTION
(Rs. In Lakhs)
PARTICULARS 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year
Capacity Utilisation 60% 65% 75% 80% 85% 90%
Output in Kgs (Inclusive of all items) 165000 195000 225000 240000 255000 270000
No. of months 11 12 12 12 12 12
AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Cost of raw Materials 84.15 99.45 114.75 122.40 130.05 137.70

Direct Salary & Wages 9.65 11.41 13.16 14.04 14.92 15.80
Power & Fuel (Variable) 0.23 0.28 0.32 0.34 0.36 0.38

Total 94.04 111.13 128.23 136.78 145.33 153.88

Average Cost per Kg 56.99 56.99 56.99 56.99 56.99 56.99

Annual Capacity Utilisation & Production

Manufacturing Raw Agarbattis

No of Working Days 300
No of Working Hrs per Day 8
Output per hr 150 Kg
Output per day 1200 Kg
Less: Wastage 200 Kg
Net Output Per Day 1000 Kg
Net Output Per Annum 300000 Kg
BAHUBALI INDUSTRIES
UNIT: MANUFACTURING OF AGARBATTIS AND ITS ALLIED PRODUCTS
APPENDIX -9

Breakup of Output of Finshed Goods in Different Variants

Name Ratio Qty (kgs) in Bags (In
lakhs Lakhs)
Raw Agarbattis
9 inch long 100% 3.00 0.00

Total 1.00 3.00 0.00

The Major raw material required will be Charcoal Powder, Saw Dust, Bamboo Sticks and Joss Powder.

Annual requirement and Cost of Raw Materials

Items Qty (Kg) Rate Per Kg Rate Per Pc Net Cost Cartoon/ Labelling Total
(Rs) (Cap & (` In Plastic Cost (` In Cost (` in
Handle) lakhs) cost Lakhs) Lakhs)
(Rs) (` In Lakhs)
(a) (b) ( c) (a+b+c)
(A) Manufacturing Raw Agarbattis
9 inch long 3.00 51.00 0.00 153.00 0.00 0.00 153.00

Total Annual Cost of Raw

Material at 100% Capacity
153.00 0.00 0.00 153.00
51.00
BAHUBALI INDUSTRIES
UNIT: MANUFACTURING OF AGARBATTIS AND ITS ALLIED PRODUCTS
APPENDIX -9
Annual Manufacturing Cost at Various Levels

Year Months Capacity Rs in Lakh

Utilisation
1st Year 11.00 60% 84.15
2nd Year 12.00 65% 99.45
3rd Year 12.00 75% 114.75
4th Year 12.00 80% 122.40
5th Year 12.00 85% 130.05
6th Year 12.00 90% 137.70

Break up of FG 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year
Production
(A) Manufacturing Raw
Agarbattis
9 inch long 1.80 1.95 2.25 2.40 2.55 2.70

TOTAL 1.80 1.95 2.25 2.40 2.55 2.70

Calculation of Labour Cost

Manpower Requirement at 100% Nos Salary PM Total
Capacity Annual
Salary

Manager / Accountant 1 15000.00 1.80

Skilled Workers 2 10000.00 2.40
Semiskilled Workers 20 5000.00 12.00
Total 16.20
Add:Bonus & Incentives 1.35

Total Labour cost per Annum at 100% Capacity 17.55

BAHUBALI INDUSTRIES

UNIT: MANUFACTURING OF AGARBATTIS AND ITS ALLIED PRODUCTS

APPENDIX -10

SELLING, GENERAL & ADMINISTRATIVE EXPENSES

Sl.N Particulars ( Rs.in 'Lakhs)

o. 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year

No. of Months 11 12 12 12 12 12
Capacity Utilisation 60% 65% 75% 80% 85% 90%

1 Telephone Expenses 0.17 0.18 0.19 0.19 0.19 0.20

2 Insurance (Fixed Assets) (@ 0.05 0.06 0.07 0.08 0.10 0.12
0.225% on WDV )
3 Insurance (Inventory) (@ 0.04 0.05 0.06 0.06 0.07 0.07
0.225% on inventory)
4 Printing & Stationary 0.17 0.19 0.20 0.21 0.22 0.23
5 Postage & Telegram 0.09 0.10 0.11 0.11 0.12 0.12
6 Travelling & Conveyance 0.66 0.76 0.79 0.83 0.88 0.92
7 General Expenses 0.39 0.44 0.46 0.49 0.51 0.54
8 Legal & Consultancy Charges 0.11 0.13 0.13 0.14 0.15 0.15
9 Rates & Tax 0.03 0.03 0.03 0.03 0.04 0.04
10 Repairs & Maintenance 0.00 0.12 0.12 0.13 0.14 0.14
11 Sales Promotion & Advertising 0.06 0.02 0.02 0.02 0.03 0.03
12 Selling and Distribution 0.27 0.28 0.30 0.31 0.33 0.35
Expenses
13 Others Adminitrative Expenses 0.28 0.32 0.33 0.35 0.36 0.38

Total 2.30 2.68 2.82 2.97 3.12 3.28

Note: It is assumed that expenses will rise @ 5% p.a.