1. land and building

Here it will be started in a rental building.required space is

16 feet*16 feet one room. The monthly rent is fixed at Rs.750

2.Machineries

SI.No	Name of machinery	Nos	Value (Rs)
1	De-fiberation machine for grind wood pulp	1	19500
2	Core morning machine to form napkin core with De-fibered wood pulp	1	5500
3	Soft touch seeling machine (with working table) to finish formed wood pulp cores into napkins	1	28000
4	Napkin core dies	5	3125
5	UV treat unit	1	10400
6	Installation of machineries and training fee		3000
	Total		69525

vat tax 12.5% Rs.8315 additional on the above prices

3.Other accessories

SI.No	Items	Nos	Value(Rs)
1	Weighing scale(To weigh wood pulp)	1	1000
2	work table	2	2000
3	Plastic buckets and trays	5	500
	Total		3500

4.Required workers

SI.No	Workers	Nos	Salary (Rs)
1	Semi skilled labours (daily wages Rs.70 per day)	4 workers	7000

5. monthly administrative services

SI.No	Expenses	Amount
1	Rent	750
2	Electricity bill	500
3	General Administrative expenses	1000
	Total	2250

6. Required raw material per month

Si.No	Raw material	Unit	Value (Rs)
1	Wood pulp	362.5 kgs	18488
2	Top layer	6500 mts	9620
3	Back layer	4200 grams	924
4	Release paper	375 sheets	188
5	Gum	25 kg	3375
6	Packing covers	4500 nos	3375
	Total		35970

Working capital required

Raw material for 35 days =Rs.53955

One month wages=Rs.7000

One month administrative expenses=Rs.2250

TotalRs.63205 say total Rs.63000

7. Required electricity

1 Hp motor (single phase ) one single phase current 220.volt its amount has been included in the administrative heads

8.Total investment

Fixed capital=Rs.81340

Working capital=Rs.63000 -------------- Total RS.144340

9.Source of funds

own contribution (10% of total project cost) Rs.14434

Fixed capital loan--------------------------------------------Rs.73206

Working capital loan--------------------------------------Rs.56700

--------------------------------------------

Total Rs.144340

price fixing per napkin

SiNo	Description	Values
1	Raw material per napkin packet	10.92
2	Cost per napkin packet	10.92
3	Addour marine	2.08
	Total price for a napkin packet contain 8 pads	13.00

10.sales per annum

per day production 1440 napkins

8 napkins per packets i.e 180 packets per day

Hence the unit manufactures 54000 packets per annum

Total sales revenue from the sale of 54000 packets @ Rs.13 per packet=Rs.702000

Cost of production per annum

Raw materials .Rs.431640

Wages and salaries .Rs.84000

Administrative expenses.Rs.27000

Depreciation on fixed assets.Rs.8134

Insurance .Rs.813

Repairs and renewals.Rs.4067

Interest on capital.Rs.18186

Selling expenses(2.3).Rs.16200

Total Rs.590040

Net profit

Total sales-cost of production

Rs.702000-590040=Rs.111960

=15%

Rate of return on investment

Profit

---------------------*100

investment

=77%

Break even point

Rent :9000

40% of salary:33600

40% of other expenses:7200

Interest on captial:10249

Depreciation:8134

Insurance:813

---------------

68996

Fixed expenses *100

Fixed expenses+profit

=68996*100

-----------------------

180956

=38%

Repayment of Term loan(in 1000s)

Year	opening balance	Repayment	Balance	Interest
1	73	14.6	58.4	10
2	58.4	14.6	43.8	8
3	43.8	14.6	29.2	6
4	29.2	14.6	14.6	4
5	14.6	14.6	nil	2