A PROJECT REPORT ON (BANK LOAN PROPOSAL)

BY

(VIDYA V. MANKAR) (BBA) (2011-2012)

IN PARTIAL FULFILLMENT OF Bachelor of Business Administration UNIVERSITY OF PUNE

MITSOM College PUNE: 4110

CERTIFICATE

This is to certify that Miss VIDYA V. MANKAR of MAEERs MITSOM College has successfully completed the project work titled BANK LOAN PROPOSAL in partial fulfillment of requirement for the award of Bachelor of Business Administration prescribed by the University of Pune

This project is the record of authentic work carried out during the academic year 2011-2012.

Project Guide Mr. Hemant Bhise

Principal Dr R.M.Chitnis

Internal Examiner

External Examiner

DECLARATION

I, MISS VIDYA V. MANKAR hereby declare that this project is the record of authentic work carried out by me during the academic year 2011-2012 and has not been submitted to any other University or Institute towards the award of any degree.

VIDYA V. MANKAR

ACKNOWLEDGEMENT

Mankar Vidya Vinayak

ABSTRACT

This project of Bank Loan Proposal includes hypothecations of the Dairy Farm Business. The proprietor intends to start a business project that is a dairy farm in Raigad district of Maharashtra & for the same her investment is Rs. 35, 60,000. She had applied to bank to grant a loan which would satisfy 40

INDEX

Sr. No.

Particulars

Page No.

CAPITAL INVESTMENT REQUIRED FOR THE PROJECT

Sr. No. 1

Particulars Construction cost of shed ( 1250Sq Ft * Rs. 1,200/-) Total Cost of Livestock (40 Livestock * Rs. 35,000/-) Total Equipment cost a. Cooling system b. Electric equipment (20 ceiling fans * Rs. 1,500/-) (25 Tube lights * Rs. 400/-) c. Water Pump d. Firefighting equipment e. Dairy farm equipment Total

Amount (Rs.) 14,50,000

Amount (Rs.)

14,50,000 14,00,000 14,00,000 1,00,000 30,000 10,000 50,000 10,000 50,000 2,35,000

4 5

Furniture & fixtures Total Security Deposit a. Security deposit with MSEB (1000 HP * Rs. 100/-) Total Vehicle a. Cycle (2 cycle * Rs. 3000/-) b. Four wheeler 75,000

1,00,000 1,00,000

6,000 2,94,000

3,00,000

Statement A
CALCULATION OF REVENUE FOR THE PROJECTED PERIOD

Particular

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Revenue From Milk (Schedule 1) Revenue from sale of Calves (Schedule 2) Revenue from sale of gunny bags (Schedule 3) Revenue from sale of manure (Schedule 4) Revenue from hiring of vehicle (Schedule 5) Total

Statement B TOTAL ANNUAL EXPENDITURE DURING THE PROJECTED PERIOD

Sr Particular Year 1 No 1 Feeding Cost 2 Salary & Wages 3 Power & Fuel 4 Vatenary Aid & Breeding Charges 5 Admin Expenditure 6 Insurance Premium Total

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

Statement D CALCULATION OF DEPRITIATION ON THE ASSET

Type of asset:- Shed Sr. No. 1 2 3 4 5 6 7 8 9 10 W. D. V. of the asset Depreciable amount Depreciation @ 10 % Closing Balance

STATEMENT OF LOAN REPAYMENT

Month

EMI Amount(Rs)

Interest Amount(Rs)

Principal Reduction(Rs)

Balance Due(Rs)

STATEMENT OF PROFITABILITY FOR THE PROJECTED PERIOD

Sr. No. 1 Particular Revenue for projected period ( Statement A) Less: Revenue Expenditure (Statement B) Profit Before Interest, Depreciation & Tax (PBIT) Less: Bank Loan Interest @ 12 % ( Statement C) Depreciation ( Statement D) Profit Before Tax (PBT) Less:- Income Tax Net Profit / (Loss) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

5 6 7 8

Statement A Cash flow

articular pening Balance of cash et Profit dd: epreciation dd: terest dd: Amount of loan dd: Own contribution ash flow

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

ss: 1. Bank Installment th interest 2. NABARD Interest ee Loan Installment 3. Capital Expenditure 4. Drawing of oprietor 5. Provision for the placement of livestock

osing Balance of Cash

BALANCE SHEET AS PER THE PROJECTED PERIOD

Particular Liabilities Proprietors Capital Bank loan Provision for replacement of livestock Total Assets Fixed Assets Advances & Deposits Current assets (cash) Total

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

DEBT SERVICE COVERAGE RATIO

Year

Net profit

Depreciation Interest EMI + Interest A on free loans yearly Loan repayment

DSCR (A/B)

1 2 3 4 5 6 7 8 9 10