Conclusion.

Annexure I

From the above analysis, explanation and projection annexed, it could be assured that the unit can function profitably .

Annexure I

Statement of estimated production and sales at full capacity.

Estimated daily production -----200 . Kg

No. of estimated working days---- 300 days

Total estimated production ----60000 Kg

Sale rate per kg @ --Rs. 80/-

Estimated annual gross receipt -------Rs. 4800000/-

Annexture II

Statement of Depreciation

Particulars Years (Rs. In lakhs)
I II III IV V
Machinery
opening balance 0 5.95 5.06 4.30 3.65
Add. addition 7.00 0.00 0.00 0.00 0.00
Total 7.00 5.95 5.06 4.30 3.65

less depreciation 15 %

 1.05 .89 .76 .65 .55
Closing Balance 5.95 5.06 4.30 3.65 3.15
Other Assets
opening balance 0.00 0.90 0.81 .73 .66
Add. addition 1.00 0.00 0.00 0.00 0.00
Total 1.00 0.90 .81 .73 .66

less depreciation 10 %

 0.10 0.09 .08 .07 .06
Closing Balance 0.90 0.81 0.73 0.76 0.60
W.D.V 6.85 5.87 5.03 4.31 3.70
Depreciation 1.15 .98 .84 .72 .61

Annexure III

Statement of loan repayment and interest on loan

Term loan Rs. 5 lakhs @ 13 % interest

Repayment in 5 years

Particulars Years (Rs. In Lakhs)
I II III IV V

Opening Balance

 0.00 4.00 3.00 2.00 1.00
Add Addition 5.00 0.00 0.00 0.00 0.00
Add interest .65 0.52 0.39 0.26 0.13
Total 5.65 4.52 3.39 2.26 1.13

Less paid during the year
Principal 1.00 1.00 1.00 1.00 1.00
Interest 0.65 0.52 0.39 0.26 0.13
Total 1.65 1.52 1.39 1.26 1.13
Closing Balance 4.00 3.00 2.00 1.00 0.00

Annexure IV

Statement of Working Capital requirement

Particulars Years (Rs. In Lakhs0
I II III IV V
I. Current Assets
a. Raw materials 2 week 1.20 1.26 1.32 1.38 1.44
b. finished goods 5 days 0.60 0.63 0.66 0.69 0.72
c. sundry debtors 2 week 1.20 1.26 1.32 1.38 1.44
D. Total 3.00 3.15 3.30 3.45 3.60
II Current liabilities
a. Sundry creditors 1 week 0.50 0.55 0.60 0.65 0.70
Total 0.50 0.55 0.66 0.65 0.70
Net working capital 2.50 2.60 2.70 2.80 2.90

Annexure V

Particulars Years (Rs. In lakhs)
I II III IV V
A .Estimated gross receipt at full capacity 48.00
B. Capacity utilization 70% 75% 80% 85% 90%
C. Income gross sale 33.60 36.00 38.40 40.80 43.20
D. Direct expenses
1.Raw materials. 18.63 19.96 21.29 22.62 23.95
2. Wages. 6.90 7.40 7.90 8.40 8.90
3. Other direct cost 0 .60 0 .64 0 .68 0 .72 0 .76
TOTAL 26.13 28.00 29.87 31.74 33.61
E. Gross profit (C-D) 7.47 8.00 8.53 9.06 9.59
F . Indirect cost
1. Interest on loan 0.91 0.78 0.65 0.52 0.39
2. Depreciation 1.15 0 .98 0 .84 0.72 0.61
3. Other administrative expenses 1.61 1.73 1.85 1.97 2.09
TOTAL 3.67 3.49 3.34 3.21 3.09
G. Profit before tax 3.80 4.51 5.19 5.38 6.50
H. Less income tax @10% 0.38 0.45 0.50 0.51 0.65
I. Profit after Tax(G-H) 3.42 4.06 4.69 5.34 5.85
J. Depreciation 1.15 0.98 0.84 0.72 0.61
NET CASH ACCRUED (I+J) 4.57 5.04 5.53 6.06 6.46

Annexure VI

Statement of Projected Cash Flow

Particulars Years (Rs. In lakhs)
I II III IV V
A. Source of fund
1. Promoters contribution 3.50 0.00 0.00 0.00 0.00
2. Bank loan 7.00 0.00 0.00 0.00 0.00

3. Net cash accrued from operation

 4.57 5.04 5.53 6.06 6.46
Total 15.07 5.04 5.53 6.06 6.46
B. Application of fund
1. Capital expenditure 8.00
2. Change in working capital 2.50 1.33 1.33 1.33 1.33
3. Loan repayment 1.00 1.00 1.00 1.00 1.00
4. Drawing by the proprietor 1.00 1.00 1.00 1.50 1.50
Total 12.50 3.33 3.33 3.83 3.83
C. Opening Cash Bank balance 0.00 2.57 4.28 6.48 8.71
D. Add net Surplus(A-B) 2.57 1.71 2.20 2.23 2.63
E. Closing balance 2.57 4.28 6.48 8.71 11.34

Annexure VII

Statement of financial viability indices

D.S.C.R

Particulars Years(Rs. In lakhs)
I II III IV V

A. Net Cash accrued from operation

 4.57 5.04 5.53 6.06 6.46
B. Add interest on loan .91 .78 .65 .52 .39
Total fund available (A+B) 5.48 5.82 6.18 6.58 6.85
C. .Repayment of loan 1.00 1.00 1.00 1.00 1.00
D. Add interest 0.91 0.78 0.65 0.52 0.39

E. Debt service requirement(C+D)

 1.91 1.78 1.65 1.52 1.39
D. D.S.C.R. 2.86 3.26 3.74 4.32 4.92
Average D.S.C.R 3.82

Break Even Analysis

Particulars Years (Rs. In lakhs)
I II III IV V
a. Sales 33.60 36.00 38.40 40.80 43.10
b. Variable cost 26.13 28.00 29.87 31.74 33.61
c. Contribution 7.47 8.00 8.53 9.06 9.61
d. Fixed cost 3.67 3.49 3.34 3.21 3.09
e. Breakeven point 49.12 43.62 39.15 35.43 32.15

Annexure VIII

Statement of projected balance sheet

Particulars Years(Rs. In lakhs)
I II III IV V
A. Capital and liabilities
1.Promotors Capital 3.50 3.50 3.50 3.50 3.50
2. Reserve and Surplus 2.42 4.25 6.71 9.32 12.44
3. Loan Fund 6.00 5.00 4.00 3.00 2.00
4. Current liabilities 0.50 0.55 0.60 0.65 0.70
Total 12.42 13.30 14.81 16.41 18.64
B. Assets
1. Fixed Asset 6.85 5.87 5.03 4.31 3.70
2. Current Asset
Inventory 1.80 1.89 1.98 2.07 2.16
Debtors 1.20 1.26 1.32 1.38 1.44
Cash Bank Balance 2.57 4.28 6.48 8.71 11.34
Total 12.42 13.30 14.81 16.47 18.64