Project Report

OWNERSHIP AND MANAGEMENT PLAN

Annexure-I
Rs. in Lacs.

S. No. Particulars Amount

1 Cost of Land & Building Owned

2 Cost of Plant & Machinery 13.00

3 Cost of Misc. Fixed Assets 2.00

15.00

Sources of Funds

1 Own Contribution 12.00

2 Unsecured Loans 3.00

15.00
 ECONOMIC / PROFITABILITY OF THE PROJECT

Annexure : II
Rs. in Lacs

S. No. Particulars I II III IV V

Capacity Utilisation 60% 70% 80% 80% 80%

A Sales 108.00 126.00 144.00 158.00 174.00

Total (A) 108.00 126.00 144.00 158.00 174.00

B Cost of Production
Raw Materials/Purchase 73.44 85.68 97.92 107.71 118.48
Power & Fuel 7.52 8.78 10.03 11.03 12.13
Consumable 5.00 6.00 7.00 8.00 9.00
Wages/Salaries 10.63 12.40 14.17 15.59 17.15
Repairs & Maintainence 0.50 0.60 0.70 0.80 0.90
Depreciation 2.15 1.84 1.57 1.35 1.15

Total (B) 99.24 115.30 131.39 144.48 158.81

C Cost of Sales 8.76 10.70 12.61 13.52 15.19

D Gross Profit 8.76 10.70 12.61 13.52 15.19

Selling Distt. & Adam. Exps. 3.66 4.50 5.31 5.12 5.69

E Ope. Profit Before Intt & Tax 5.10 6.20 7.30 8.40 9.50

Interest :-
Term Loan ------- ------- ------- ------- -------
Working Capital ------- ------- ------- ------- -------

F Profit after Intt. 5.10 6.20 7.30 8.40 9.50

Taxes 0.10 0.20 0.30 0.40 0.50

G Profit after Tax 5.00 6.00 7.00 8.00 9.00

 Annexure : III
Rs. in Lacs

Installed Capaity of Rw Material Requirement

Capacity Per Day : 1500 Pcs of Hinges

Shift : (8 Hours + 4 Hours = 12 Hours)

Production Per Month : 37500 Pcs of Hines

No. of Working Days : 25 days in a month

Production per anum : 450000 Pcs of Hines

Raw Material Consumption for 1500 Pcs Per Day

S. No. Item Quantity Rate Amount

1 Strips SS 300 Kg 106/- 31,800.00

2 Wire/Pin 75 Kg 120/- 9,000.00

40,800.00

Yearly Consumption : Rs. 12240000/-

Or Say 122.40 Lacs

Capacity Utilisation :

1st Year 60% Capacity Utilisation : Rs. 73.44 Lacs

2nd Year 70% Capacity Utilisation : Rs. 85.68 Lacs
3rd Year 80% Capacity Utilisation : Rs. 97.92 Lacs
 Annexure : IV
Rs. in Lacs

Sales Realisation:

Total Production Capacity

S. No. Particulars Production Capacity

1 Hinges 450000 Pcs P.A

Realisation:

S. No. Particulars Production Rate Amount

1 Hinges 450000 Pcs 40/- 18000000

Or Say 180.00 Lacs

Capacity Utilisation :

1st Year 60% Capacity Utilisation : Rs. 108.00 Lacs

2nd Year 70% Capacity Utilisation : Rs. 126.00 Lacs
3rd Year 80% Capacity Utilisation : Rs. 144.00 Lacs
 Annexure : V
Rs. in Lacs

Details of Power Requirements

Particulars Value

Total Power Requirements 49 KW

Power Load Factor 0, 746

No. of Working Hours / Day 12

No. of Units Required / Day 440 Units

No. of Units Required per anum 132000 Units

No. of Working Days in a year 300.00

50% Units available by UHBVN 66000 Units

50% Units available by D.G Set 66000 Units

Rate/Unit UHBVN Rs. 9.00 = 594,000.00

Rate/Unit D.G. Set Rs. 10.00 = 660,000.00

Total Expenditure 1,254,000.00

Or Says Rs. 12.54 Lacs

Capacity Utilisation :

1st Year 60% Capacity Utilisation : Rs. 7.52 Lacs

2nd Year 70% Capacity Utilisation : Rs. 8.78 Lacs
3rd Year 80% Capacity Utilisation : Rs. 10.03 Lacs
 Annexure VI
Rs. in Lacs
Schedule of Wages

S. No Designation No. of Posts Wages P.M Amount

1 Manager 1 15,000.00 15,000.00

2 Super Visor 1 12,000.00 12,000.00

3 Skilled Worker 6 10,000.00 60,000.00

4 Semi Skilled Worker 4 9,000.00 36,000.00

12
Monthly Wages 123,000.00
Add 20% for other benefits 24,600.00
Total Monthly Wages 147,600.00

Yearly Wages : Rs. 17.71 Lacs

Capacity Utilisation :

1st Year 60% Capacity Utilisation : Rs. 10.63 Lacs

2nd Year 70% Capacity Utilisation : Rs. 12.40 Lacs
3rd Year 80% Capacity Utilisation : Rs. 14.17 Lacs
 Annexure-VII
Rs. In Lacs.
Schedule of Depriciation

Plant & Misc. Fixed

Particulars Machinery Assets Total
Cost 13.00 2.00

Rate of Depreciation 15% 10%

1st Year Depreciation 1.95 0.20 2.15

W.D.V. 11.05 1.80

2nd Year Depreciation 1.66 0.18 1.84

W.D.V. 9.39 1.62

3rd Year Depreciation 1.41 0.16 1.57

W.D.V. 7.98 1.46

4th Year Dereciation 1.20 0.15 1.35

W.D.V. 6.78 1.31

5th Year Depreciation 1.02 0.13 1.15

W.D.V. 5.76 1.18

 Cash Flow Statement
Annexure: VIII
Rs. In Lacs

Particulars I II III IV V

Cash Accruals (Net Profit before

Intt. Tax) 5.10 6.20 7.30 8.40 9.50
Own Contribution 12.00 ------- ------- ------- -------
Depreciation 2.15 1.84 1.57 1.35 1.15
Increase in Unsecured Loan 3.00 ------- ------- ------- -------
Increase in Working Capital ------- ------- ------- ------- -------
Increase in Term Loan ------- ------- ------- ------- -------
Short Term Deposit ------- ------- ------- ------- -------

Total Sources ( A) 22.25 8.04 8.87 9.75 10.65

Disposition of Funds:
Decrease in Unsecured Loan ------- 1.00 1.00 1.00 -------
Security & Deposits ------- ------- ------- ------- -------
Cash & Bank Bal. ------- ------- ------- ------- -------
Increase in capital Expenditure 15.00 ------- ------- ------- -------
Decrease in Term Loan ------- ------- ------- ------- -------
Increase in Net Current Assets ------- 1.00 1.00 0.50 1.50
Interest ------- ------- ------- ------- -------
Tax 0.10 0.20 0.30 0.40 0.50
Drawing / Dividends 5.00 5.50 6.50 7.50 8.50

Total Disposition ( B) 20.10 7.70 8.80 9.40 10.50

( C ) Op. Balaance. ------- 2.15 2.49 2.56 2.91

(D ) Net Surplus 2.15 0.34 0.07 0.35 0.15
(E ) Closing Balance 2.15 2.49 2.56 2.91 3.06
 PROJECTED BALANCE SHEET
Annexure: IX
Rs. In Lacs

Liabilities I II III IV V

Term Loan ( Bank) ------- ------- ------- ------- -------

Unsecured Loans 3.00 2.00 1.00 ------- -------
Secured Loan from Bank (W.C.) ------- ------- ------- ------- -------

Net Worth:

Own Contribution 12.00 12.00 12.00 12.00 12.00

Reserve & Surplus ------- 0.50 1.00 1.50 2.00

Total 15.00 14.50 14.00 13.50 14.00

Assets:-

Net Fixed Assets 12.85 11.01 9.44 8.09 6.94

Net Current Assets ------- 1.00 2.00 2.50 4.00

Cash & Bank Balance 2.15 2.49 2.56 2.91 3.06

Prelimnary & Pre-op-exps. ------- ------- ------- ------- -------

Total 15.00 14.50 14.00 13.50 14.00