PROJECT REPORT FOR BUSINESS INVESTMENT

DETAILS M/s. MARIAMMAN AGENCIES, Prop: [Link], D/o Mr. Sitharthan

No.14, Santhi Nagar, RTO Office Opposite,
Pillaiyarpatti Post,
Thanjavur - 613001
COST OF PROJECT (Rs. in Lakhs)

New Business Investments 6.83

Total 6.83

MEANS OF FINANCE

Term Loan repayable in Six years (Rate of Interest 11.10%) 6.50

Owners Contribution 0.33

Total 6.83

BANK LOAN REPAYMENT SCHEDULE

Opening Interest Closing

Year Balance Repaid Principal @ 11.10% Balance
I 6.50 0.59 0.35 0.24 6.15
II 6.15 1.76 1.08 0.68 5.07
III 5.07 1.76 1.20 0.56 3.87
IV 3.87 1.76 1.33 0.43 2.54
V 2.54 1.76 1.48 0.28 1.06
VI 1.06 1.17 1.06 0.11 0.00
PROJECTED PROFITABILITY STATEMENT FOR SIX YEARS
M/s. MARIAMMAN AGENCIES, Prop: [Link], D/o Mr. Sitharthan (Rs. in Lakhs)
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Year I II III IV V VI
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Sales 55.47 60.00 66.00 72.60 79.90 87.90 96.70

Closing Stock 6.58 12.00 12.50 13.00 13.50 14.00 14.50

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Total GP 62.04 72.00 78.50 85.60 93.40 101.90 111.20
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Opening Stock 3.23 6.58 12.00 12.50 13.00 13.50 14.00

Purchases 48.35 54.1 54.04 59.39 65.31 71.8 78.94
Salary & Bonus 0.86 0.95 1.00 1.10 1.20 1.30 1.40
Other Admin Expenses 2.70 2.58 2.37 2.69 3.04 3.42 3.84
Interest Expenses 0.00 0.24 0.68 0.56 0.43 0.28 0.11

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Total Expenses 55.14 64.45 70.09 76.24 82.98 90.30 98.29
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Net income 6.90 7.55 8.41 9.36 10.42 11.60 12.91

Taxes (assumed) 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Profit after tax 6.90 7.55 8.41 9.36 10.42 11.60 12.91
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PROJECTED BALANCE SHEET FOR SIX YEARS (Rs. in Lakhs)
M/s. MARIAMMAN AGENCIES, Prop: [Link], D/o Mr. Sitharthan
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Year I II III IV V VI
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Capital Balance 11.47 14.35 17.26 20.62 24.54 29.14 34.55
Bank loan principal
Repayable within
Balance 5.07 3.87 2.54 1.06 0.00 0.00
One year 1.08 1.20 1.33 1.48 1.06 0.00
Sundry Creditors 2.57 2.00 1.50 1.00 0.50 0.00 0.00
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14.04 22.50 23.83 25.49 27.58 30.20 34.55
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Cash & Bank 0.89 0.94 0.99 1.04 1.09 1.14 1.19
Debtors/Investment 2.83 5.82 6.60 7.71 9.25 11.32 15.12
Advances & Deposits 0.30 0.30 0.30 0.30 0.30 0.30 0.30
Furniture & Fittings 0.62 0.62 0.62 0.62 0.62 0.62 0.62
Thalavadam 1.95 1.95 1.95 1.95 1.95 1.95 1.95
Two Wheeler 0.86 0.86 0.86 0.86 0.86 0.86 0.86
Closing Stock 6.58 12.00 12.50 13.00 13.50 14.00 14.50

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14.04 22.50 23.83 25.49 27.58 30.20 34.55
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PROJECTED CASH FLOW STATEMENT FOR SIX YEARS (Rs. in Lakhs)
M/s. MARIAMMAN AGENCIES, Prop: [Link], D/o Mr. Sitharthan
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Year I II III IV V VI
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CASH IN FLOWS AS PER INDIRECT METHOD (AS 3)

Profit after tax 7.55 8.41 9.36 10.42 11.60 12.91

Bank Interest 0.24 0.68 0.56 0.43 0.28 0.11
Decrease in Creditors -0.57 -0.50 -0.50 -0.50 -0.50 0.00
Bank loan 6.50
Owner Contribution 0.33
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14.06 8.59 9.42 10.35 11.38 13.02
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CASH OUT FLOWS AS PER INDIRECT METHOD (AS 3)

Loan Repaid 0.59 1.76 1.76 1.76 1.76 1.17

Increase-Drs/Investment 2.99 0.78 1.11 1.54 2.07 3.80
Increase in Stock 5.42 0.50 0.50 0.50 0.50 0.50
Drawings 5.00 5.50 6.00 6.50 7.00 7.50
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14.00 8.54 9.37 10.30 11.33 12.97
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Opening balance 0.89 0.94 0.99 1.04 1.09 1.14

Surplus/Deficit 0.05 0.05 0.05 0.05 0.05 0.05

Closing Balance 0.94 0.99 1.04 1.09 1.14 1.19

Note: We assume that all generating cash flow are reinvested into the
business by way of increasing Debtors/Investments
DEBT SERVICE COVERAGE RATIO (OVERALL) (Rs. in Lakhs)
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Year I II III IV V VI
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Profit after tax 7.55 8.41 9.36 10.42 11.60 12.91

Add: Bank Interest 0.24 0.68 0.56 0.43 0.28 0.11

Less: Drawings -5.00 -5.50 -6.00 -6.50 -7.00 -7.50

Cash accrual 2.79 3.59 3.92 4.35 4.88 5.52

Total repayment 0.59 1.76 1.76 1.76 1.76 1.17

DSC ratio 1.58 2.04 2.23 2.47 2.77 3.15

Average DSCR 2.37