The total capital requirement including fixed capital and working capital is estimated at Rs.1.70 lakhs as follows. Of this, the project cost comprising fixed capital and margin money on working capital is Rs.1.55 lakhs.
| Fixed Capital : | (Rs. In lakh) |
| Land and Building | Own |
| Plant and Machinery | 0.90 |
| Misc. fixed assets. | 0.30 |
| Preliminary & Pre-op. Expenses: | 0.10 |
| Total(A) : | 1.30 |
| Working Capital : | ||
| Raw materials & Packing materials | 15 days | 0.09 |
| Finished goods | 15 days | 0.20 |
| Working Expenses | 1 month | 0.16 |
| Receivables | 15 days | 0.25 |
| Total (B) : | 0.70 | |
| Total(A) + (B): | 1.70 |
Note : Working capital May be finan
Bank Finance (65%)---------------------Rs. 0.45 lakh
Margin Money (35%)-------------------Rs. 0.25 lakh.
Total :Rs.0.70 lakh.
Fixed Cost Rs. 1.30 lakh
Margin Money for Capital.----Rs. 1.25 lakh
Total : Rs. 1.55 lakh.
Promoter’s contribution (35%)-0.55 lakh
Term Loan (65%)-1.00 lakh.
Total :1.55 lakh
| Total capital required | Rs.1.70 lakhs. |
| Promoter’s contribution | Rs 0.55 lakhs. |
| Annual realization Sales | Rs. 6.65 lakhs. |
| Annual operating expenses | Rs. 4.99 lakhs. |
| Annual Profit (Pre- tax) | Rs. 1.66 lakhs. |
| Pre-tax return on sales | 25%. |
| Break-Even Point. | 31%. |
| No. of persons employed | 8 Nos. |
Based on the sales realization of Rs 6.65 lakhs and the operating expenses of Rs 4.99 lakhs, the profit at rated capacity utilization would be Rs 1.66 lakhs per year. This works out to be return on investment of 98%. The unit will break even at about 31% of the targeted annual production.
| Items | Qnty. | Rates(Rs) | Value (Rs) ( Lakhs) |
| Door Mat (13’ x 22’) | 1000 Nos. | 60/- | 0.60 |
Floor Covering (4’ x 6’) |
1000 Nos. | 300/- | 3.00 |
| Screen | 1600 Nos. | 50/- | 0.80 |
| Durry (2.5’ x 5.0’) | 1500 Nos. | 150/- | 2,25 |
| Total | 6.65 |
