Project Report For

Water Purifier Unit

Submitted To

Promoter:

Xxxxxxxxxxxxxxxxxxx

Project Location
xxxxxxxxxxxxxxxxxxxxx

Prepared by:
Download Project Report.com
1187/67, Ground Floor, Gruhalaxmi,
J.M. Road, near Balgandharva Chowk,
Pune, Maharashtra 411005.
 Project For:
Water Purifier Unit

CONTENT

CHAPTER NO. PARTICULAR

I. PROJECT AT A GLANCE

II. ABOUT THE PROJECT

III. ECONOMICS OF THE PROJECT

A. TOTAL COST OF THE PROJECT
B. PROFITABILITY STATEMENT
C. CASH FLOW STATEMENT
D. BALANCE SHEET
E. CAPITAL ACCOUNT
F. PRODUCTION AND SALES
G. RAW MATERIAL CONSUMPTION AND INVENTORY
H. DIRECT OVERHEADS
I. INDIRECT OVERHEADS
J. TERM LOAN REPAYMENT AND INTEREST THEREON
K. WORKING CAPITAL
L. CURRENT ASSETS
M. FIXED ASSETS AND DEPRECIATION
 Project For:
Water Purifier Unit

I. PROJECT AT A GLANCE

1. About the Promoter : xxxxxxxxxxxxxxxxxxxxxxxxxxx

Address- xxxxxxxxxxxxxxxxxxxxx

2. Project Cost : Rs. 30.43 Lakhs

3. Mean of Finance
A) T. L. facility from Bank : Rs. 25.00 Lakhs

B) Beneficiary contribution : Rs. 3.04 Lakhs

C) C.C. Facility from Bank : Rs. 2.39 Lakhs

4. Rate of Interest : 11.00% Per Annum

5. Repayment :60 monthly installments, EMI @ 0.54 Lakhs

6. Nature of Project : Water Purifier Unit

7. Employment Potential : 3 Nos.

8. Nature of the Firm :Self employed

9. Average Debt Coverage ratios : 2.00

 Project For:
Water Purifier Unit

II. ABOUT THE PROJECT

Introduction
It is needless to mention that water, a compound of hydrogen and oxygen is a precious
natural gift which is very essential for survival of mankind including animals. The water
used for portable purposes should be free from undesirable impurities. The water
available from untreated sources such as Well, Boreholes and Spring is generally not
hygienic and safe for drinking. Thus it is a desirable and necessary to purify the water
and supply under hygienic conditions for human drinking purpose as the name implies.
The mineral water is the purified water fortified with requisite amounts of minerals such
as barium, iron, manganese etc., which can absorbed by human body. It is either
obtained from natural resources like spring and drilled wells or it is fortified artificially by
blending and treating with mineral salts. The mineral water shall be manufactured and
packed under hygienic conditions sin properly washed and cleaned bottles in sterilized
conditions.

MARKET POTENTIAL

Unfortunately sufficient safe portable water is not available everywhere in the country,
either harmful chemical substances are found in the layers of earth which enter in to
water or it may be contaminated due to pathogenic micro-organisms. If such water is
consumed, the body suffers from water born diseases. Due to this, it has become
imperative to process and bottle safe portable water for the mankind in prevailing
conditions. The demand for purified water becomes more during summer season.
Although few companies have already entered in the bottling of safe portable water and
mineralized water, but still huge gap is there in between demand and supply at all
metropolitan cities and towns. The product is widely accepted in offices, restaurants,
railway stations, airport, but stands, hospitals and to some extent in rich house-holds.
So there is good scope for establishing the units for processing and bottling plain and
mineralized drinking water in different parts of the country.
 Project For :
Water Purifier Unit

III. ECONOMICS OF THE PROJECT

A. COST OF PROJECT
(Rs. Lacs)

S.No. Particulars Total Spent Bal. To be

spent

1 Building ( Shed) 19.00 0.00 19.00

2 Plant & Machinery 4.66 0.00 4.66

Water purification Systems,water chillers

3 Furniture & Electrical Installations 2.50 0.00 2.50

Other Assets including Preliminary / Pre- 1.62 0.00 1.62

4
operative expenses

5 Working Capital 2.65 0.00 2.65

30.43 0.00 30.43

Means of Finance :
a) Own Contribution (10%) 3.04

b) T L facility from Bank (90%) 25.00

c) C.C. Facility from Bank (90%) 2.39

30.43
 Project For :
Water Purifier Unit

B. PROFITABILITY STATEMENT
(Rs. Lacs)

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5

1 Sales 28.93 34.71 40.50 43.39 46.28

Add : Increase in Cl.Stock 1.45 2.09 2.05 2.26 2.64
Total Turnover 30.37 36.81 42.54 45.65 48.93

2 RM Consumption 6.84 16.41 21.06 24.82 29.12

3 Overheads
a) Direct 4.20 4.62 5.08 5.57 6.11
b) Indirect 0.93 1.03 1.13 1.21 1.31
4 Balance 18.40 14.75 15.27 14.05 12.39
5 Interest on TL & CC 2.84 2.38 1.87 1.30 0.66
6 Depreciation 2.85 2.53 2.25 2.00 1.78
7 Preliminery expenses W/off 0.32 0.32 0.32 0.32 0.32
8 Profit after Interest & Dep. 12.39 9.52 10.83 10.43 9.63
9 Income Tax 1.92 1.10 1.45 1.33 1.13
10 Profit after Tax 10.47 8.41 9.38 9.10 8.50
11 Add: Depreciation & Pre Exp. 3.17 2.85 2.57 2.32 2.10
12 Add : Interest on TL 2.84 2.38 1.87 1.30 0.66
13 Cash Accruals 16.49 13.65 13.82 12.72 11.26
14 Instalments of TL & Interest 6.81 6.81 6.81 6.81 6.81

15 DSCR 2.42 2.00 2.03 1.87 1.65

16 Average DSCR 2.00

17 N.P. to Total receipts 36.20 24.24 23.17 20.98 18.37

 Project For :
Water Purifier Unit

C. CASH FLOW STATEMENT

(Rs. Lacs)

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5

A CASH INFLOW :

1 Collection from Debtors 27.72 33.27 38.81 41.58 44.35

2 T.L. from Bank 25.00
3 CC from bank 2.39
4 Capital 3.04 - - - -
5 Subsidy -

TOTAL (A) 58.15 33.27 38.81 41.58 44.35

B CASH OUTFLOW :

1 Fixed Assets 27.78 -

2 Payments to creditors 5.70 13.67 17.55 20.68 24.27
3 Direct overheads 4.20 4.62 5.08 5.57 6.11
4 Indirect Overheads 0.93 1.03 1.13 1.21 1.31
5 Interest on Bank Loan 2.84 2.38 1.87 1.30 0.66
6 Income Tax 1.92 1.10 1.45 1.33 1.13
7 Term Loan Repayment 3.97 4.43 4.94 5.51 6.15
8 Drawings 2.00 2.20 2.42 2.66 2.93

TOTAL (B) 49.34 29.43 34.44 38.27 42.55

SUMMERY:
Op. Cash & Bank Balance. - 8.82 12.65 17.02 20.33
Add : Surplus / (Deficit) 8.82 3.83 4.37 3.31 1.81
Cl. Cash & Bank Balance. 8.82 12.65 17.02 20.33 22.13
 Project For :
Water Purifier Unit

D. BALANCE SHEET
(Rs. Lacs)

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5

A ASSETS :

1 Fixed Assets 23.31 20.78 18.54 16.54 14.76

2 Investments - - - - -

3 Current Assets 11.47 18.84 26.94 34.33 40.70

4 Loans & Advances - - - - -

5 Pre Exp. Not written off 1.30 0.97 0.65 0.32 -

TOTAL (A) 36.07 40.59 46.13 51.19 55.47

B LIABILITIES:

1 Capital 11.52 17.73 24.69 31.13 36.71

2 Secured loans
Term Loan 21.03 16.60 11.66 6.15 -

3 Unsecured Loans - - - - -

4 Current Liabilities
Cash Credit 2.39 2.39 2.39 2.39 2.39
Sundry Creditors 1.14 3.87 7.38 11.52 16.37

TOTAL (B) 36.07 40.59 46.13 51.19 55.47

.
- - - - -
 Project For :
Water Purifier Unit

(Rs. Lacs)

E. CAPITAL ACCOUNT

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5

1 Op. Balance - 11.52 17.73 24.69 31.13

2 Additions 3.04 - - - -

3 Net Profit for the year. 10.47 8.41 9.38 9.10 8.50

Sub Total 13.52 19.93 27.11 33.79 39.63

4 Less : Drawings 2.00 2.20 2.42 2.66 2.93

5 Cl. Balance 11.52 17.73 24.69 31.13 36.71

 Project For :
Water Purifier Unit

(Rs. Lacs)

F. PRODUCTION AND SALES

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Capacity utilisation 0.50 0.60 0.70 0.75 0.80

1 Production per annum (MT)

Production of Purifier Water 315.56 378.67 441.78 473.34 504.90

2 Cl.Stock of Finished Goods (MT)

Production of Purifier Water 26.30 31.56 36.82 39.45 42.07

3 Sales per annum (MT)

(Tot Production less Cl. Stock)
Production of Purifier Water 289.26 347.12 404.97 433.90 462.82

4 Sales per annum

Production of Purifier Water 28.93 34.71 40.50 43.39 46.28
Selling Price @ Rs.10 per Can

Total Sale 28.93 34.71 40.50 43.39 46.28

5 Sundry Debtors 1.21 1.45 1.69 1.81 1.93

(Credit period allowed 15 days)

6 Collection from Debtors 27.72 33.27 38.81 41.58 44.35

7 Total cost of Production 11.04 21.03 26.14 30.39 35.23

8 Cost per MT 0.03 0.06 0.06 0.06 0.07

9 Value of Closing Stock 0.92 1.75 2.18 2.53 2.94

 Project For :
Water Purifier Unit

PRODUCTION

Installed
Year 1 Year 2 Year 3 Year 4 Year 5
capacity
S.No. Particulars (MT) 0.50 0.60 0.70 0.75 0.80

1 Production of Purifier 631.12 315.56 378.67 441.78 473.34 504.90

Water

Installed Capacity Kg/ Hrs 280.00

Per Day Working Hours 8.00
Less: Lunch Hours 1.00
Net 7.00

Total Production per day 1.96 Liter

Total production per annum 631.12 Liter

Total Working Days 365.00

Weekly off 26.00
Holidays 7.00
Machine Break down 10.00 43.00
Net Working days 322.00
 Project For :
Water Purifier Unit

(Rs. Lacs)

G. RAW MATERIAL CONSUMPTION AND INVENTORY

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5

1 Production (MT) ( Output) 315.56 378.67 441.78 473.34 504.90

2 RM Purchases 6.31 15.15 19.44 22.91 26.88

Raw Material requirement ( Input)

S.No. Items Year 1 Year 2 Year 3 Year 4 Year 5

1 Raw Material (MT) 315.56 378.67 441.78 473.34 504.90

2 Purchase of Raw Material 0.02 0.04 0.04 0.05 0.05

Water, Plastic Botols

3 Total cost of R.M 6.31 15.15 19.44 22.91 26.88

 Project For :
Water Purifier Unit

(Rs. Lacs)

RAW MATERIAL CONSUMPTION AND INVENTORY

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5

1 RM cost for total production 6.31 15.15 19.44 22.91 26.88

2 Cl. Stock of RM
( assumed 30 days consumption)
O/p Stock - 0.53 1.79 3.41 5.32
Add : Addition 0.53 1.26 1.62 1.91 2.24
Closing Stock 0.53 1.79 3.41 5.32 7.56

3 RM Purchases 6.84 16.41 21.06 24.82 29.12

4 Sundry Creditors 1.14 2.73 3.51 4.14 4.85

(Credit period allowed 60 days)

5 Payment to creditors 5.70 13.67 17.55 20.68 24.27

 Project For :
Water Purifier Unit

(Rs. Lacs)

H. DIRECT OVERHEADS

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5

1 Staff
a Skill Worker 1.44 1.58 1.74 1.92 2.11
1 no. @ Rs. 12,000 per month

b Unskill Worker 1.92 2.11 2.32 2.56 2.81

Skilled labour 2 no.@ Rs. 8,000
per month

2 Power and Fule 0.36 0.40 0.44 0.48 0.53

Rs. 3000 Per Month

3 Packing and forwarding Expenses 0.18 0.20 0.22 0.24 0.26

( Rs.1500 per Month)

4 Other Production Overheads 0.30 0.33 0.36 0.38 0.40

Total 4.20 4.62 5.08 5.57 6.11

`
 Project For :
Water Purifier Unit

(Rs. Lacs)

I. INDIRECT OVERHEADS

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5

1 Advertisement & Marketing 0.25 0.28 0.30 0.33 0.37

2 Repairs & Maint. 0.23 0.26 0.28 0.31 0.34

( 5% of machinery cost)

3 Admin. Expenses 0.20 0.22 0.24 0.25 0.27

4 Misc. Expenses 0.25 0.28 0.30 0.32 0.33

0.93 1.03 1.13 1.21 1.31

 Project For :
Water Purifier Unit

(Rs. Lacs)

J. TERM LOAN REPAYMENT AND INTEREST THEREON

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5

1 TL / Op. Bal. 25.00 21.03 16.60 11.66 6.15

2 Repayment during the year 3.97 4.43 4.94 5.51 6.15
3 Cl. Balance 21.03 16.60 11.66 6.15 -

4 Interest at 11 per cent p.a. 2.55 2.09 1.58 1.01 0.37

5 Total repayment with Interest 6.81 6.81 6.81 6.81 6.81

6 Interest on CC 0.29 0.29 0.29 0.29 0.29

( at 12 per cent p.a.)

Total Interest 2.84 2.38 1.87 1.30 0.66

LOAN AMOUNT 25.00

RATE OF INTEREST PER ANNUM 11.00%
RATE OF INTEREST PER MONTH 0.917%
NO OF INSTALLMENT 60
EMI 0.54
Term Loan Repayment Schedule

MONTHS EMI INTERES PRINCIP OST

T AL PRINCIP
REPAYM AL
ENT
0 25.00
1 0.54 0.23 0.31 24.69
2 0.54 0.23 0.32 24.37
3 0.54 0.22 0.32 24.05
4 0.54 0.22 0.32 23.73
5 0.54 0.22 0.33 23.40
6 0.54 0.21 0.33 23.07
7 0.54 0.21 0.33 22.74
8 0.54 0.21 0.34 22.40
9 0.54 0.21 0.34 22.07
10 0.54 0.20 0.34 21.72
11 0.54 0.20 0.34 21.38
12 0.54 0.20 0.35 21.03
First Year 6.52 2.55 3.97
13 0.54 0.19 0.35 20.68
14 0.54 0.19 0.35 20.33
15 0.54 0.19 0.36 19.97
16 0.54 0.18 0.36 19.61
17 0.54 0.18 0.36 19.25
18 0.54 0.18 0.37 18.88
19 0.54 0.17 0.37 18.51
 20 0.54 0.17 0.37 18.13
21 0.54 0.17 0.38 17.76
22 0.54 0.16 0.38 17.38
23 0.54 0.16 0.38 16.99
24 0.54 0.16 0.39 16.60
Second Year 6.52 2.09 4.43
25 0.54 0.15 0.39 16.21
26 0.54 0.15 0.39 15.82
27 0.54 0.14 0.40 15.42
28 0.54 0.14 0.40 15.02
29 0.54 0.14 0.41 14.61
30 0.54 0.13 0.41 14.20
31 0.54 0.13 0.41 13.79
32 0.54 0.13 0.42 13.37
33 0.54 0.12 0.42 12.95
34 0.54 0.12 0.42 12.52
35 0.54 0.11 0.43 12.10
36 0.54 0.11 0.43 11.66
Third Year 6.52 1.58 4.94
37 0.54 0.11 0.44 11.23
38 0.54 0.10 0.44 10.79
39 0.54 0.10 0.44 10.34
40 0.54 0.09 0.45 9.89
41 0.54 0.09 0.45 9.44
42 0.54 0.09 0.46 8.98
43 0.54 0.08 0.46 8.52
44 0.54 0.08 0.47 8.06
45 0.54 0.07 0.47 7.59
46 0.54 0.07 0.47 7.11
47 0.54 0.07 0.48 6.63
48 0.54 0.06 0.48 6.15
Fourth Year 6.52 1.01 5.51
49 0.54 0.06 0.49 5.66
50 0.54 0.05 0.49 5.17
51 0.54 0.05 0.50 4.68
52 0.54 0.04 0.50 4.17
53 0.54 0.04 0.51 3.67
54 0.54 0.03 0.51 3.16
55 0.54 0.03 0.51 2.64
56 0.54 0.02 0.52 2.13
57 0.54 0.02 0.52 1.60
58 0.54 0.01 0.53 1.07
59 0.54 0.01 0.53 0.54
60 0.54 0.00 0.54 0.00
Fifth Year 6.52 0.37 6.15
 Project For :
Water Purifier Unit

(Rs. Lacs)

K. WORKING CAPITAL

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5

1 Total Inventory 1.45 3.54 5.59 7.85 10.49

2 Sundry Debtors 1.21 1.45 1.69 1.81 1.93

Total 2.65 4.99 7.27 9.66 12.42

3 Bank C.C. 2.39 4.49 6.55 8.69 11.18

(90 per cent)

4 Own Contribution (10%) 0.27 0.50 0.73 0.97 1.24

 Project For :
Water Purifier Unit

(Rs. Lacs)

L. CURRENT ASSETS

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5

1 Cl. Stock of Materials 0.53 1.79 3.41 5.32 7.56

2 Cl. Stock of Finished Goods 0.92 1.75 2.18 2.53 2.94

Total Inventory 1.45 3.54 5.59 7.85 10.49

3 Cash and bank Balance 8.82 12.65 17.02 20.33 22.13

4 Sundry Debtors 1.21 2.65 4.34 6.15 8.08

Total 11.47 18.84 26.94 34.33 40.70

 Project For :
Water Purifier Unit

M. FIXED ASSETS AND DEPRECIATION

(Rs. Lacs)

S.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5

1 Building ( Shed)
Op. Balance - 17.10 15.39 13.85 12.47
Additions 19.00 -
Total 19.00 17.10 15.39 13.85 12.47
Less : Depreciation 1.90 1.71 1.54 1.39 1.25
Cl. WDV 17.10 15.39 13.85 12.47 11.22

1 Plant & Machinery

Op. Balance - 3.96 3.37 2.86 2.43
Additions 4.66 -
Total 4.66 3.96 3.37 2.86 2.43
Less : Depreciation 0.70 0.59 0.51 0.43 0.36
Cl. WDV 3.96 3.37 2.86 2.43 2.07

2 Furniture & Electrical Installations

Op. Balance - 2.25 2.03 1.82 1.64
Additions 2.50 -
Total 2.50 2.25 2.03 1.82 1.64
Less : Depreciation 0.25 0.23 0.20 0.18 0.16
Cl. WDV 2.25 2.03 1.82 1.64 1.48

Total Depreciation 2.85 2.53 2.25 2.00 1.78

Cl. WDV 23.31 20.78 18.54 16.54 14.76