PROJECT REPORT

ON
SHAVIGE(SEVAI)
MANUFACTURING UNIT

PROP SUJATA W/o SANGANNA PATIL,

NEAR MSK MILL ROAD,SHAH HUSSAINI
CHILLA,BRAHMPUR,KALABURAGI 585-103

PROJECT DONE BY
PRADEEP REDDY
TAX CONSULTANT
REG NO 292200007537GPH
PH NO 9060500470
 PROJECT AT A GLANCE

1 Name of the Unit Shavige(sevai)manufacturing unit

2 Line of Activity Food Manufacturing

3 Products shavige ,sevu etc

4 New/Expansion/Modernization New

5 Constitution Proprietorship

6 Name of the Proprietor Sujata w/o Sanganna police patil

7 Registered Address near msk mills

road,shah husaaini chill
kalaburagi 585103

8 Site Location near msk mills road

shah Hussaini chilla
kalaburagi 585103

9 Cost of the Project 5,00,000

10 Feciliites Required Term Loan

11 Promoters Contribution 25,000

12 Loan From Bank 4,75,000

13 Moratorium 3 Months

14 Power NA

15 BEP 60.74%

16 Average DSCR 3.3

17 Phone number 8123455591

Total Project Cost

S.No Particulars Amount

capital
1. Shavige manufacturing machine 2 2,70,000
2*50hz vermicelli steel machine(3 stage)

Working Capital
2. Raw materials required 2,30,000

-
-
Total Cost 5,00,000

Means of Finance :Term Loan

S.NO Particulars Amount %

1 Promoters Conribution 25,000 5%

2 Bank Finance 4,75,000 95%
Total 5,00,000 100%

S.NO Particulars Amount %

Working Capital 5,00,000
Total Working Capital Required
Shavige manufacturing unit

Yield Statement -
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
1.Total Installed Capacity sale per day 5000 5000 6000 6000 8000
3.No of Selling days in year 300 300 300 300 300
4.Total Installed Capacity 700000 700000 900000 900000 1200000
5.Capacity Utilization 80.00% 85.00% 90.00% 95.00% 100.00%
5.Actual Capacity 1500000 1500000 1800000 1800000 2400000
7.Total Revenue /Year 15,00,000 15,00,000 18,00,000 18,00,000 24,00,000

Cost
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
a) Raw Material Purchase Cost
1.Purchases Cost 800000 800000 1000000 1000000 1200000
Total Feed Cost 8,00,000 8,00,000 10,00,000 10,00,000 12,00,000

Cost
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
- - - - -
a)Labour Cost
1.Manpower Required 2 2 2 2 3
2.Salary/Month 10,000 10,000 10,000 12,000 12,000
Total Salary 2,40,000 2,40,000 2,40,000 2,88,000 4,32,000

b)Repaire And Maintaince/ Year 10000 11000 12100 13310 14641

c)Insurance @2% on Animal Cost - - - - -

d) Electrical Cost/ Year 48,000 52,800 58,080 63,888 70,277

Shavige Manufacturing unit

Projected Profitabilty Statement

Projected Projected Projected Projected Projected

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Income

Sales Revenue 15,00,000 15,00,000 18,00,000 18,00,000 24,00,000

Other Income - - - - -

Total 15,00,000 15,00,000 18,00,000 18,00,000 24,00,000

Expenditure

Raw Material Purchase Cost 8,00,000 8,00,000 10,00,000 10,00,000 12,00,000

-
Salaries & Wages 2,40,000 2,40,000 2,40,000 2,88,000 4,32,000
-
Repairs and Maintaince Cost 10,000 11,000 12,100 13,310 14,641

Electricity Charges 48,000 52,800 58,080 63,888 70,277

Misc Exp - - - - -

Bank Charges 57,000 45,600 34,200 22,798 11,400

Depriciation 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000

Profit Before Tax 2,45,000 2,50,600 3,55,620 3,12,007 5,71,682

Provision for Tax - - 92,116 1,72,000

Profit After Tax 2,45,000 2,50,600 3,55,620 2,19,891 3,99,000

Net Profit Ratio 16.33% 16.70% 23.708% 14.65% 26.6%

BALANCE SHEET
Projected Projected Projected Projected Projected
Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Liabilities
Proprietors Capital
Capital 1,00,000 3,45,000 5,95,600 9,51,220 11,71,111
Reserves & Surplus 2,45,000 2,50,600 3,55,620 2,19,891 3,99,000
Less: Drawings - - - - -
Total 3,45,000 5,95,600 9,51,220 11,71,111 15,70,111
Secured Loans
Term Loan 3,79,996 2,84,992 1,89,988 95,004

Unsecured Loans - - - - -

Current Liabilities
Advances From Customers - - - - -
Sundry Creditors - - - - -
Other Provisions - - - - -

Total 7,24,996 8,80,592 11,41,208 12,66,115 15,70,111

Assets

Fixed Assets 6,00,000 6,00,000 7,00,000 6,00,000 6,00,000

Non Current Assets - - - - -

Current Assets
Sundry Debtors 29,167 29,167 35,000 35,000 46,667
Loans & Advances - - - - -
Cash & Bank Balances 95,829 2,51,425 4,06,208 6,31,115 9,23,444

Total 7,24,996 8,80,592 11,41,208 12,66,115 15,70,111

Shavige manufacturing unit

Term Loan
4,75,000

Rate 12.00%
Intallments Monthly 60
Insatallament Amount 12,667

Installment No Opening Balance Installment Amount Interest Closing Balance Yearly Interest
1st year 475000 1st month 7917 4,750

Total 12 monts 95,004 57,000 3,79,996 57,000

2nd year 3,79,996 1st month 7917 3,800

Total 12 months 95.004 45,600 2,84,992 45,600

3rd year 2,84,992 1st month 7917 2850

Total 12 months 95,004 34,200 1,89,988 34,200

4th year 1,89,988 1st month 7917 1900

Total 12 monts 95,004 22798 95000 22798

5th year 95,000 1st month 7917 950

Total 12 months 95000 11,400 00000 11,400

Debt Service Coverage Ratio

Projected Projected Projected Projected Projected

Particulars Year 1 Year 2 Year 3 Year 4 Year 5
2,45,000 2,50,600 3,55,620 2,19,891 3,99,000
Profit After tax

Depriciation 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000

Interest on term Loan 57,000 45,600 34,200 22,798 11,400

Total 4,02,000 3,96,200 4,89,820 3,42,689 5,11,400

Payment Obligation

TL Installments 95,000 95,000 95,000 95,000 95,000

Interest 57,000 45,600 34,200 22,798 11,400

Total 1,52,000 1,40,600 1,29,200 1,17,798 1,06,400

DSCR 2.64 2.81 3.79 2.90 4.80

Avg DSCR 3.3

Break Even Point

Projected Projected Projected Projected Projected

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Revenue 15,00,000 15,00,000 18,00,000 18,00,000 24,00,000

Variable Costs
Raw Material Purchase Cost 8,00,000 8,00,000 10,00,000 10,00,000 12,00,000
Repairs and Maintaince Cost 10,000 11,000 12,100 13,310 14,641
Total 8,10,000 8,11,000 10,12,100 10,13,310 12,14,641

Contribution 6,90,000 6,89,000 7,87,900 7,86,690 11,85,359

Fixed Costs
Salaries 2,40,000 2,40,000 2,40,000 2,88,000 4,32,000
Electricity Charges 48,000 52,800 58,080 63,888 70,277
Interest
57,000 45,600 34,200 22,798 11,400
Depriciation 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000
Total 4,45,000 4,38,400 4,32,280 4,74,683 6,10,377

Break even Point 73.51% 66.26% 56.33% 60.97% 51.63%

Break even Sales 11,02,717 9,93,940 10,13,954 10,97,444 12,39,173

Margin of Safety Sales 3,97,283 5,06,060 7,86,046 7,02,556 11,60,827

Average BEP 60.74%