Project Appraisal For A Hypothetical Textile Manufacturer

EMINENT TEXTILES
Modipuram Meerut
Utter Pradesh.
PROJECT REPORT
Submitted by Mustafa Khan (2002362)
EMINENT TEXTILES , MEERUT

PROJECT REPORT
INDEX
CHAPTER
PARTICULARS
I-
INTRODUCTION
A- BACKGROUND
B- LOCATION
C- NATURE OF INDUSTRY
II-
BIO DATA OF THE PARTNERS
III-
ESTABLISHMENT
ABCDE-
IV -
LAND
BUILDING
PLANT AND MACHINERY
POWER
WATER
PAGE NUMBER
-1-1- 1- 2 to 3 -
-4-4- 4 to 5 -5-5-
OPERTIONAL ASPECTS
ABCDE-
RAW MATERIALS
MANUFACTURING PROCESS
MARKETING
MAN POWER
EFFLUENTS
-5- 5-6-6- 6-
CHAPTER
PARTICULARS
PAGE NUMBER
V-
PROJECT AT A GLANCE
-7-
VI-
PRESUMPTIONS
-8 -
VII-
DETAILS OF CAPACIATY
-9 -
VIII-
PROJECTIONS OF PERFORMANCE
PROFITABILITY
- 10 & 11 -
IX-
IMPORTANT RATIOS
- 12 -
X-
PROJECTED BALANCE SHEET
- 13 -
XI-
CASH FLOW STATEMENT
- 14 -
XII-
BREAK EVEN POINT
- 15 -
XIII-
DETAILED WORKING
- 16 TO 20
XIV-
STATEMENT OF WORKING CAPITAL
- 21-
EMINENT TEXTILES, MEERUT

PROJECT REPORT
CHAPTER I INTRODUCTION
A- BACKGROUND
Having been encouraged and inspired by the Utter Pradesh Agro Advantage
campaign launched by the Utter Pradesh Govt. we have decided to start a Industrial Unit.
We have given serious consideration to all the factors more particularly in the area of
upholstery fabric looking to their own experience, financial capacity, administrative
convenience, etc. and have concluded that Job Work of upholstery fabric is the most
suitable and lucrative proposition. Finally we have decided to set up a small scale unit for
upholstery fabric, especially drapes production.
B : LOCATION
The Project Holders after realizing the factors of availability of the raw materials,
transportation has selected a site on National Highway No. 58, situated at Modipuram
which is hardly 4 Kms away from Meerut. As Modipuram is a small village, it will be
beneficiary to the Industry as the entrepreneur will get labor, etc at cheaper rate. It is a
matter of fact that Meerut Division has gained the recognition of been one of the key
producer of yarn through Dewan Textile Mill, at Meerut.
The final product i.e., Drapes has nationwide demand from the customers itself as
it is a Consumable item.
B- NATURE OF INDUSTRY
The proposed unit will be classified as a SSI unit and therefore shall be entitled to
all concessions, incentives available from the State and Central Govt. The Project has
been got Provisional registered with the District Industries Centre, Garh. There is a
subsidy at 35% with a ceiling of Rs. 25lacs to the maximum along with a power subsidy
for SSI units at Rs. 3.5 per unit.
CHAPTER III ESTABLISHMENT

A LAND
The unit has proposed to acquire a plot ad-measuring 20000 square feet on lease
for 40 years. The Plot is situated on the National Highway No. 58 at Modipuram and is
well connected to the road. The Job Work is available in near by areas and easily be
brought up to the location through out the year. The plot is specious enough to house the
factory shade along with the shades for storing the raw materials & finished goods.
B- BUILDING
Factory Building Construction Cost is expected to arrive at Rs. 16.70 lacs .A
detailed building map along with estimated cost is enclosed herewith. (5000sqft,
300rs/sqft)
C- PLANT AND MACHINERY
We have planned to install a Rapier Loom Plant with an available advanced
technology being used in the Upholstery Industry. The following machinery is required
for Fabric Industry.
SR.
NO.
1
PARTICULARS
QTY.
Rapier Looms
RATE RS.
(000)
514.80
Jacquards
1580.00
Motors
Over Head Traveller
Erection charges
271.00
Electrification Charges
250.00
Contingencies, Transportation, Loading

and Unloading Charges
159.20
various
1
AMOUNT RS.
(000)
1544.40
4740.00
170.00
125.00
125.00
GRAND TOTAL RS. (000)
6230.00
D- POWER
The maximum power required will be about 100H.P. covering the installation of
motors, Water Pump, Domestic Electric requirement. The application for supply of power
to the unit has been already applied to U.P.S.E.B. and the same is principally agreed to
give the required load.
E- WATER
The total water requirement per day will be about 500 liters only. The same will
be supplied by existing tube well.
Humidification, blowers in summer,
CHAPTER IV OPERATIONAL ASPECTS
A- RAW MATERIAL
The main raw material for this unit is 10,00 end warpers beam and different
yarns which will be supplied by M/s Dewan Textile Mill, Meerut for their job work and
the rest would be purchased from the market. So as such there is no problem of basis raw
material required by the unit.
B-MANUFACTURING PROCESS
Manufacturing process requires the development of design and feeding the design
to the jacquard. Depending upon the requirement, yarns and process parameters will be
selected and warpers beam installed. Technical settings are done for the production
process and the fabric will be rolled onto a take up roller.
C MARKETING
We have ready market for drapes and upholstery purchases. We will have
arrangements with bulk purchasers like Garha Bhandar. So we will have work during the
whole year and we have not to trace any new job work since. We are going to supply
material to wholesale dealers and specially
D - MAN POWER
The Total Man Power requirement is as under:
1234-
Master
Helper
Supervisor
Labour
- 1 Nos
- 3 Nos
- 3 Nos
- 7 Nos
Man power for such work is locally available for which no additional requirement
is to be full filled by the unit.
E - EFFLUENTS
In fact there are no effluents which are hazardous to the environment. However
the unit has applied for Consent to Operate Certificate from Utter Pradesh Pollution
Control Board, Meerut.
EMINENT TEXTILES, MEERUT
CHAPTER - V - PROJECT AT A GLANCE

CAPACITY
:
295 KG PER DAY PER SHIFT OF 8 HOURS
UTILISED
:
CAPACITY
TURNOVER
( 3R YEAR
RS.(000) :
NORMAL
YEAR : OF
WORKING
98%
12081.31
THIRD YEAR
PROJECT COST
Amount
(Rs. 000)
1)
Land ( Lease Hold )
0.00
2)
Factory Building & Site Development
1670.00
3)
Plant & Machinery
6230.00
4)
Preoperative Expenses
100.00
5)
Margin Money for working capital
358.99
Total
8358.99
PROPOSED FINANCES
Amount
(Rs. 000)
Partner's Capital
2158.99
1)
Term Loan
5000.00
2)
Unsecured Loans
1200.00
3)
Total
8358.99
CHAPTER VI -
1)
Capacity
PRESUMPTIONS
:
295.00
Kgs. Per Shift Per Working day
2)
No of Shifts per day
3)
Capacity Utilisation
Single Yarn
I) 1st Year
94%
831.9
Kgs. Per day.
ii) 2nd Year
96%
849.6
Kgs. Per day.
iii) 3rd Year
98%
867.3
Kgs. Per day.
No. of working days p.a.
360
days .
No. of shifts per day.
shift.
5)
Working Hours Per day.
Hours
6)
Raw Materials :
Single Yarn
4)
I)
Availability
(a) 360 days

I) Rate : Per Kgs.
89.00
Single Yarn
7)
Sales Doubled Yarn

I) Rate : Per Kgs.
Doubled yarn
8)
9)
106.25
Job Work Rates

I) Rate : Per Kgs.
Doubled Yarn Job Work
17.25
ii ) Delivery .
Ex Factory - Meerut
iii) Realization
Per Kgs.
Month
Stocks
The Unit follows 31st March as its year end.
Days of
Stock Held
i) Single Yarn
30
days
at cost
30
days
at cost
a) Building
10%
b) Plant & Machinery
15%
ii) Stores Stock

10)
Basic of
Valuation.
Depreciation Method :
11)
Rate of Interest :
I) On Term Loan
ii) On Working Capital Loan
iii) Bridge Unsecured Loan & Deposits from friends
and relatives.
:
:
13.00%
13.00%
12)
Subsidy
:
:
12.00%
The release of subsidy is expected in five equa
instalments from second year onwards as per new
Industrial Policy of Utter Pradesh Govt.
13)
Normal Working Year
3rd year
CHAPTER VII - DETAILS OF CAPACITY
Unit
1st year
2nd year
3rd year
4th year
5th year
Kgs.
295.00
295.00
295.00
295.00
295.00
for Double Yarn
No' s
360
360
360
360
360
3)
No. of Shift
No' s
4)
No. of employees
( Including Workers )
No' s
11
11
11
11
11
General Staff
No' s
Kgs.
885.00
885.00
885.00
885.00
885.00
885.00
885.00
885.00
885.00
885.00
318600.00
318600.00
318600.00
318600.00
318600.00
318600.00
318600.00
318600.00
318600.00
318600.00
94%
96%
98%
98%
98%
1)
Installed Capacity Per day Per

Shift
2)
No. of Working days
Factory Staff
5)
Estimated Production Per day

i) Double Yarn
ii) Sub - Total (i)
6)
Estimated Annual Production

i) Double Yarn
7)
8)
9)
10)
11)
Kgs.
ii) Sub - Total (i)

Estimated output as percentage of
plant Capacity in %
Total Quantity
i) Double Yarn
Kgs.
299484.00
305856.00
312228.00
312228.00
312228.00
ii) Sub - Total (i)
Kgs.
299484.00
305856.00
312228.00
312228.00
312228.00
i) Double Yarn 25%
Kgs.
74871.00
76464.00
78057.00
78057.00
78057.00
ii) Sub - Total (i)
Kgs.
74871.00
76464.00
78057.00
78057.00
78057.00
i) Double Yarn 75%
Kgs.
224613.00
229392.00
234171.00
234171.00
234171.00
ii) Sub - Total (i)
Kgs.
224613.00
229392.00
234171.00
234171.00
234171.00
Rs.(000)
7955.04
8124.30
8293.56
8293.56
8293.56
Rs.(000)
7955.04
8124.30
8293.56
8293.56
8293.56
Sales Quantity
Job Work Quantity
Sales ( Amount ) ( Rs . 000 )

i) Double Yarn
0.10625
ii) Sub - Total (i)
12)
Job Work ( Amount ) ( Rs . 000 )

i) Double Yarn
0.01725
13)
Rs.(000)
3874.57
3957.01
4039.45
4039.45
4039.45
ii) Sub - Total (i)
Rs.(000)
3874.57
3957.01
4039.45
4039.45
4039.45
Total Sales ( Amount ) ( Rs. 000)
Rs.(000)
11829.62
12081.31
12333.01
12333.01
12333.01
CHAPTER VIII -PROJECTIONS OF PERFORMANCE, PROFITABILITY

AND REPAYMENT
(Rs.000)
Year
Percentage Utilisation of
installed capacity
A.
B.
1st
2nd
3rd
4th
94%
96%
98%
98%
11829.62
12081.31
12333.01
12333.01
0.00
0.00
0.00
0.00
11829.62
12081.31
12333.01
12333.01
7326.44
6819.40
6961.18
6947.07
99.83
101.95
104.08
104.08
2120.55
2165.67
2210.79
2210.79
Sales
1)
Sales and Job Work
2)
Less : Excise Duty
3)
Net Sales
Cost of Production
4)
Single Yarn
5)
Stores
6)
Power & Fuel
7)
Direct Labour & Wages
315.96
363.35
363.35
363.35
8)
Repairs & Maintenance
30.00
40.00
50.00
60.00
9)
Depreciation
1115.44
956.58
820.71
704.45
11008.22
10446.96
10510.10
10389.74
0.00
662.92
677.03
691.13
11008.22
11109.88
11187.12
11080.87
662.92
677.03
691.13
691.13
10345.30
10432.85
10495.99
10389.74
1484.32
1648.46
1837.01
1943.27
Total Cost of Production

9)
`
10)
Add : Opening stock in progress

and finished goods
Deduct : Closing stock in

progress and finished goods
C.
Cost of Sales
D.
Gross Profit ( A - C )
E.
Interest
i)
On Term Loans
643.75
562.50
462.50
362.50
ii)
Relatives and Friends
144.00
144.00
115.20
86.40
iii)
On Working Capital
140.01
143.99
146.69
146.48
927.76
850.49
724.39
595.38
F.
Selling & Administrative Exp.
236.59
241.63
246.66
246.66
G.
Profit Before Tax (D-(E+F)
319.97
556.34
865.97
1101.23
H.
Provision for Taxes
0.00
0.00
231.88
355.95
Net Profit (G-H)
319.97
556.34
634.09
745.28
J.
i)
1115.44
956.58
820.71
704.45
643.75
562.50
462.50
362.50
ii)
Depreciation added back

Interest on Term Loan added
back
K.
Total of I & J
L.
Repayment Obligations
2079.16
2075.42
1917.29
1812.22
i)
Towards proposed term loan
384.62
769.23
769.23
769.23
ii)
Interest on Term Loans
643.75
562.50
462.50
362.50
1028.37
1331.73
1231.73
1131.73
2.02
1.56
1.56
1.60
N.
Debts Service Coverage Ratio K ; L

Average Debts Service Coverage
Radio
Earning per rupee
0.15
0.26
0.29
0.35
Average Earning per rupee
0.37
Internal rate of return
2079.16
2075.42
1917.29
1812.22
Average Internal rate of return
1814.65
M.
1.75
CHAPTER VIII -PROJECTIONS OF PERFORMANCE, PROFITABILITY

AND REPAYMENT
(years 5-8)
Year
5th
Percentage Utilization of
installed capacity
A.
B.
6th
7th
8th
0%
0%
0%
0%
11829.62
11829.62
11829.62
11829.62
0.00
0.00
0.00
0.00
11829.62
11829.62
11829.62
11829.62
7326.44
7326.44
7326.44
7326.44
99.83
99.83
99.83
99.83
2120.55
2120.55
2120.55
2120.55
Sales
1)
Sales and Job Work
2)
Less : Excise Duty
3)
Net Sales
Cost of Production
4)
Single Yarn
5)
Stores
6)
Power & Fuel
7)
315.96
315.96
315.96
315.96
8)
10.00
20.00
30.00
40.00
9)
Depreciation
998.60
898.74
808.87
727.98
10871.38
10781.52
10701.64
10630.76
0.00
662.92
662.92
662.92
10871.38
11444.44
11364.56
11293.68
662.92
662.92
662.92
662.92
10208.46
10781.52
10701.64
10630.76
1621.16
1048.10
1127.97
1198.86
Total Cost of Production

9)
`
10)
Add : Opening stock in progress

and finished goods
Deduct : Closing stock in

progress and finished goods
C.
Cost of Sales
D.
Gross Profit ( A - C )
E.
Interest
i)
On Term Loans
4th
4th
4th
0.00
ii)
Relatives and Friends
262.50
162.50
0.00
0.00
iii)
On Working Capital
140.01
143.99
146.69
146.48
402.51
306.49
146.69
146.48
F.
Selling & Administrative Exp.
236.59
236.59
236.59
236.59
G.
Profit Before Tax (D-(E+F)
982.06
505.02
744.70
815.79
H.
Provision for Taxes
0.00
0.00
231.88
355.95
Net Profit (G-H)
982.06
505.02
512.82
459.84
J.
i)
998.60
898.74
808.87
727.98
ii)
Depreciation added back

Interest on Term Loan added
back
4th
4th
4th
0.00
K.
Total of I & J
L.
Repayment Obligations
i)
Towards proposed term loan
ii)
Interest on Term Loans
1980.66
1403.76
1321.69
#REF!
#REF!
#REF!
4th
M.
Debts Service Coverage Ratio K ; L
N.
Average Debts Service Coverage Radio
Earning per rupee
Average Earning per rupee
Internal rate of return
Average Internal rate of return
4th
4th
Debts Service
Coverage Ratio
(DSCR)
2.02
2nd
Year
1.56
0.00
0.00
#REF!
#REF!
#REF!
0.00
#REF!
#REF!
#REF!
0.00
0.45
0.23
0.24
0.21
1980.66
1403.76
1321.69
1187.82
CHAPTER IX - IMPORTANT RATIOS (year 1- 4)

1st Year
1187.82
3rd Year
4th Year
1.56
1.60
Average DSCR
1.75
Earning per rupee
0.15
0.26
0.29
0.35
2079.16
2075.42
1917.29
1812.22
Debt Equity Ratio
1.37
1.23
1.07
0.87
Current Ratio
1.93
2.58
3.16
3.77
Asset Cover
1.49
1.54
1.66
1.91
0.00
0.00
231.88
355.95
0.00
0.00
0.00
0.00
11829.62
12081.31
12333.01
12333.01
B.E.P. (Commercial)
88.47%
80.30%
69.87%
61.56%
% of installed
capacity
83.16%
77.09%
68.48%
60.33%
B.E.P. (CASH)
48.29%
46.43%
41.32%
36.97%
% of installed
capacity
45.39%
44.58%
40.49%
36.23%
Internal Rate of
Return
Contribution to Exchequer by way of

Direct Tax ( Rs.
000)
Indirect Tax ( Rs.
000)
Addition to Gross
Domestic Products
(Rs.000)
CHAPTER IX - IMPORTANT RATIOS (year 5-8)
5th Year
6th Year
7th Year
8th Year
Debts Service
Coverage Ratio
(DSCR)
1.67
1.90
1.92
0.00
0.40
0.50
0.50
0.54
1727.04
1766.30
1597.89
1541.90
Debt Equity Ratio
0.64
0.36
0.00
0.00
Current Ratio
4.39
5.10
5.60
6.60
Asset Cover
2.47
4.26
Average DSCR
Earning per rupee
Internal Rate of
Return
Contribution to Exchequer by way of

Direct Tax ( Rs.
000)
Indirect Tax ( Rs.
000)
460.14
439.85
627.21
673.33
0.00
0.00
0.00
0.00
12333.01
12333.01
12333.01
12333.01
B.E.P. (Commercial)
53.77%
46.44%
39.48%
35.19%
% of installed
capacity
52.70%
45.51%
38.69%
34.49%
B.E.P. (CASH)
32.58%
28.17%
23.72%
21.59%
% of installed
capacity
31.93%
27.60%
23.25%
21.16%
Addition to Gross
Domestic Products
(Rs.000)
CHAPTER X- PROJECTED BALANCE SHEET (year 1-4)

(RS.
000)
PARTICULARS
1st
Year
2nd
Year
3rd Year
4th Year
A
.
Liabilities
Partner's Capital
Profit & Loss
(Surplus)
2158.99
2158.99
2158.99
2158.99
319.97
876.31
1510.40
2255.68
500.00
1000.00
1500.00
Subsidy Reserve
Term Loans
4615.38
3846.15
3076.92
2307.69
Bank Borrowings
for working capital
1076.97
1107.62
1128.36
1126.78
Unsecured Loans
1200.00
960.00
720.00
480.00
Current Liabilities
& Provisions
432.93
415.91
424.61
424.30
9804.24
9864.99
10019.28
10253.44
Gross Block
8000.00
8000.00
8000.00
8000.00
Depreciation
1115.44
2072.03
2892.73
3597.18
Net block
6884.56
5927.97
5107.27
4402.82
Current Assets
1868.89
1892.74
1929.08
1926.67
Cash and Bank

Balance
1050.80
2044.27
2982.93
3923.94
Total :
9804.24
9864.99
10019.28
10253.44
Total
B
.
Assets
CHAPTER X- PROJECTED BALANCE SHEET (year 5-8)

(RS.
000)
PARTICULARS
A
.
5th Year
6th Year
7th Year
8th Year
Partner's Capital
2158.99
2158.99
2158.99
2158.99
Profit & Loss

(Surplus)
3115.27
4199.32
5287.93
6445.57
Subsidy Reserve
2000.00
2500.00
2500.00
2500.00
Term Loans
1538.46
769.23
0.00
0.00
Bank Borrowings
for working capital
1125.23
1123.90
1122.74
1121.75
Unsecured Loans
240.00
0.00
0.00
0.00
Current Liabilities
& Provisions
424.57
424.85
425.13
425.41
10602.53
11176.29
11494.79
12651.71
Gross Block
8000.00
8000.00
8000.00
8000.00
Depreciation
4202.12
4721.88
5168.66
5552.92
Net block
3797.88
3278.12
2831.34
2447.08
Current Assets
1924.88
1923.38
1922.12
1921.07
Cash and Bank

Balance
4879.77
5974.78
6741.33
8283.56
10602.53
11176.29
11494.79
12651.71
Liabilities
Total
B
.
Assets
Total :
CHAPTER XI -CASH FLOW STATEMENT

(Rs.
000)
PARTICULARS
A
.
1st Year
2nd
Year
3rd
Year
4th
Year
1247.73
1406.83
1590.35
1696.61
956.58
820.71
704.45
-21.13
5.91
(0.59)
500.00
500.00
500.00
1076.97
30.66
20.73
(1.57)
127.66
4.11
2.79
0.28
12232.06
2877.05
2940.49
2899.17
Sources of Funds
Cash accruals (viz. Net
Profit before taxation and
interest but after
depreciation
Induction of Partner's
Capital
Depreciation
2158.99
1115.44
Induction of Long Term

Loans
Induction of Unsecured
Loans
Increase in Sundry
Creditors
5000.00
1200.00
305.27
Subsidy from State Govt.

Increase in Bank
Borrowings for working
capital
Increase in Current
Liabilities
Total
B
.
Disposition of Funds
Increase in Capital
Expenditure
8000.00
Increase in Current Assets

Inventories
662.92
14.10
14.10
0.00
Receivables
985.80
20.97
20.97
0.00
Others
220.16
(11.23)
1.26
(2.41)
384.62
769.23
769.23
769.23
240.00
240.00
240.00
927.76
850.49
724.39
595.38
0.00
0.00
231.88
355.95
11181.26
1883.58
2001.84
1958.16
1050.80
2044.27
2982.93
Decrease in Long Term

Loans
Decrease in Unsecsured
Loans
Interest
Taxation
Distribution of Profit
Total
C
.
D
.
E.
Opening Balance
Net Surplus
1050.80
993.48
938.65
941.02
Closing Balance
1050.80
2044.27
2982.93
3923.94
CHAPTER XI -CASH FLOW STATEMENT
PARTICULARS
5th
Year
6th
Year
7th
Year
(Rs.
000)
8th
Year
A
.
Sources of Funds
Cash accruals (viz. Net
Profit before taxation and
interest but after
depreciation
Induction of Partner's
Capital
1786.11
1861.31
1924.28
1976.80
604.95
519.75
446.78
384.26
0.00
0.00
0.00
0.00
500.00
500.00
(1.55)
(1.34)
(1.15)
(1.00)
0.28
0.28
0.28
0.28
2889.78
2880.00
2370.18
2360.34
Inventories
0.00
0.00
0.00
0.00
Receivables
0.00
0.00
0.00
0.00
(1.79)
(1.50)
(1.26)
(1.05)
769.23
769.23
769.23
0.00
240.00
240.00
Interest
466.38
337.41
208.46
145.83
Taxation
460.14
439.85
627.21
673.33
1933.96
1784.99
1603.63
818.11
Opening Balance
3923.94
4879.77
5974.78
6741.33
Net Surplus
955.82
1095.01
766.55
1542.23
Closing Balance
4879.77
5974.78
6741.33
8283.56
Depreciation
Induction of Long Term
Loans
Induction of Unsecured
Loans
Increase in Sundry
Creditors
Subsidy from State Govt.
Increase in Bank
Borrowings for working
capital
Increase in Current
Liabilities
Total
B
.
Disposition of Funds
Increase in Capital
Expenditure
Increase in Current Assets
Others
Decrease in Long Term
Loans
Decrease in Unsecsured
Loans
Distribution of Profit
Total
C
.
D
.
E.
CHAPTER XII - BREAK EVEN ANALYSIS

Rs.
(000)
1st Year
2nd
Year
3rd Year
4th Year
AVERAGE CAPACITY
UTILIZATION
1)
SALES
2)
VARIABLE COST
Raw Material
ii
Stores
iii
Power & Fuel
iv
On Working Capital
3)
CONTRIBUTION ( 1 - 2 )
4)
FIXED COST
94%
96%
98%
98%
11829.62
12081.31
12333.01
12333.01
6663.52
6805.30
6947.07
6947.07
99.83
101.95
104.08
104.08
2120.55
2165.67
2210.79
2210.79
30.00
40.00
50.00
60.00
140.01
143.99
146.69
146.48
9053.90
9256.91
9458.62
9468.42
2775.72
2824.41
2874.38
2864.59
315.96
363.35
363.35
363.35
ii
On Term Loans
787.75
706.50
577.70
448.90
iii
Selling & Administrative

Exp.
236.59
241.63
246.66
246.66
iv
Depreciation
1115.44
956.58
820.71
704.45
2455.75
2268.06
2008.42
1763.36
B.E.P. (Commercial)
88.47%
80.30%
69.87%
61.56%
% of installed capacity
83.16%
77.09%
68.48%
60.33%
B.E.P. (CASH)
48.29%
46.43%
41.32%
36.97%
45.39%
44.58%
40.49%
36.23%
5)
6)
CHAPTER XII - BREAK EVEN ANALYSIS

Rs.
(000)
5th Year
6th Year
7th Year
8th Year
AVERAGE CAPACITY
UTILIZATION
1)
SALES
2)
VARIABLE COST
Raw Material
ii
Stores
iii
Power & Fuel
iv
On Working Capital
3)
CONTRIBUTION ( 1 - 2 )
4)
FIXED COST
98%
98%
98%
98%
12333.01
12333.01
12333.01
12333.01
6947.07
6947.07
6947.07
6947.07
104.08
104.08
104.08
104.08
2210.79
2210.79
2210.79
2210.79
70.00
80.00
90.00
100.00
146.28
146.11
145.96
145.83
9478.22
9488.04
9497.89
9507.76
2854.79
2844.96
2835.11
2825.24
363.35
363.35
363.35
363.35
ii
On Term Loans
320.10
191.30
62.50
0.00
iii
Selling & Administrative

Exp.
246.66
246.66
246.66
246.66
iv
Depreciation
604.95
519.75
446.78
384.26
1535.06
1321.07
1119.30
994.27
B.E.P. (Commercial)
53.77%
46.44%
39.48%
35.19%
52.70%
45.51%
38.69%
34.49%
B.E.P. (CASH)
32.58%
28.17%
23.72%
21.59%
31.93%
27.60%
23.25%
21.16%
5)
6)
CHAPTER XIII - DETAILED WORKING

Unit
A)
POWER AND FUEL

( Including Consumption )
1st year
2nd year
3rd year
4th year
5th year
1)
Units consumed per day at 100%

No's
2)
3)
Units Consumed Per day.
No's
4)
Annual Unit Consuption
No's (000)
5)
Rate per unit
Rs.
6)
Cost of Power
Rs. (000)
B)
DIRECT LABOUR AND WAGES
1)
Staff on Monthly Basis
2)
96%
98%
98%
98%
1682.98
1718.78
1754.59
1754.59
1754.59
605.87
618.76
631.65
631.65
631.65
3.50
3.50
3.50
3.50
3.50
2120.55
2165.67
2210.79
2210.79
2210.79
Master - i.e..1 x 4000
Rs.
48000
48000
48000
48000
48000
Supervisor 3 x 2000
Rs.
72000
72000
72000
72000
72000
Helper i.e. 3 x 1500
Rs.
54000
54000
54000
54000
54000
Rs.
141960
141960
141960
141960
141960
Rs.
315960
315960
315960
315960
315960
Rs. (000)
315.96
315.96
315.96
315.96
315.96
15% Benefits from 2nd year
Rs. (000)
0.00
47.394
47.394
47.394
47.394
onwards.
Rs. (000)
315.96
363.35
363.35
363.35
363.35
Labours on Daily Basis

7 x 26 x 65
3)
94%
(11830)
C- DEPRECIATION ON W.D.V. BASIS :

YEAR
LAND
BUILDING
COST /
WDV/
OPENING
DEPRECIATION
WDV
CLOSING
COST /
WDV/
OPENING
DEPRECIATION
WDV
CLOSING
10%
1st.
0.00
0.00
0.00
1691.14
169.11
1522.03
2nd.
0.00
0.00
0.00
1522.03
152.20
1369.82
3rd.
0.00
0.00
0.00
1369.82
136.98
1232.84
4th.
0.00
0.00
0.00
1232.84
123.28
1109.56
5th.
0.00
0.00
0.00
1109.56
110.96
998.60
6th.
0.00
0.00
0.00
998.60
99.86
898.74
7th.
0.00
0.00
0.00
898.74
89.87
808.87
8th.
0.00
0.00
0.00
808.87
80.89
727.98
PLANT & MACHINERY
TOTAL
DEPRECIATION
COST /
WDV/
OPENING
DEPRECIATION
WDV
CLOSING
15%
6308.86
946.33
5362.53
1115.44
5362.53
804.38
4558.15
956.58
4558.15
683.72
3874.43
820.71
3874.43
581.16
3293.26
704.45
3293.26
493.99
2799.28
604.95
2799.28
419.89
2379.38
519.75
2379.38
356.91
2022.48
446.78
2022.48
303.37
1719.10
384.26
D- DEPRECIATION ON W.D.V. BASIS :

FOR INCOME TAX CALCULATIONS
YEAR
BUILDING
COST /
WDV/
OPENING
DEPRECIATION
TOTAL
DEPRECIATION
PLANT & MACHINERY
WDV
CLOSING
COST /
WDV/
OPENING
DEPRECIATION
10%
WDV
CLOSING
25%
1st.
1691.14
169.11
1522.03
6308.86
1577.22
4731.65
1746.33
2nd.
1522.03
152.20
1369.82
4731.65
1182.91
3548.73
1335.11
3rd.
1369.82
136.98
1232.84
3548.73
887.18
2661.55
1024.17
4th.
1232.84
123.28
1109.56
2661.55
665.39
1996.16
788.67
5th.
1109.56
110.96
998.60
1996.16
499.04
1497.12
610.00
6th.
998.60
99.86
898.74
1497.12
374.28
1122.84
474.14
7th.
898.74
89.87
808.87
1122.84
280.71
842.13
370.58
8th.
808.87
80.89
727.98
842.13
210.53
631.60
291.42
E: INTEREST AND REPAYMENT OF LOANS :

Term loan Rs.
(Rs.000)
Repayment
in
Quarterly
instalments
5000.00
Interest on
quarterly basis
@
BALANCE
LOAN
RS. (000)
INSTALLMENT
OF
REPAYMENT
RS. (000)
INTEREST
RS. (000)
13.00%
YEAR
Quarter
1st
1st
5000.00
162.50
2nd
5000.00
162.50
3rd
5000.00
192.31
162.50
4th
4807.69
192.31
156.25
1st
4615.38
192.31
150.00
2nd
4423.08
192.31
143.75
3rd
4230.77
192.31
137.50
4th
4038.46
192.31
131.25
1st
3846.15
192.31
125.00
2nd
3653.85
192.31
118.75
3rd
3461.54
192.31
112.50
4th
3269.23
192.31
106.25
1st
3076.92
192.31
100.00
2nd
2884.62
192.31
93.75
3rd
2692.31
192.31
87.50
4th
2500.00
192.31
81.25
1st
2307.69
192.31
75.00
2nd
2115.38
192.31
68.75
3rd
1923.08
192.31
62.50
4th
1730.77
192.31
56.25
1st
1538.46
192.31
50.00
2nd
1346.15
192.31
43.75
3rd
1153.85
192.31
37.50
4th
961.54
192.31
31.25
1st
769.23
192.31
25.00
2nd
3rd
4th
5th
6th
7th
YEARLY
INTEREST
643.75
562.50
462.50
362.50
262.50
162.50
8th
2nd
576.92
192.31
18.75
3rd
384.62
192.31
12.50
4th
192.31
192.31
6.25
62.50
1st
2nd
3rd
4th
Long Term Unsecured Deposit
Working Capital Loan of
(Rs.000)
(Rs.000)
1200.00
1076.97
1st year
Bridge
Loan for
capital
subsidy
and
others
from
friends
and
relatives
@
BALANCE
LOAN
RS. (000)
12.00%
INSTALLMENT
OF
REPAYMENT
RS. (000)
INTEREST
RS. (000)
YEARLY
INTEREST
13.00%
BALANCE
LOAN
RS. (000)
INSTALLMENT
OF
REPAYMENT
RS. (000)
INTEREST
RS. (000)
1200.00
36.00
1076.97
35.0014
1200.00
36.00
1076.97
35.0014
1200.00
36.00
1076.97
35.0014
1200.00
36.00
1076.97
35.0014
1200.00
36.00
1107.62
35.9977
1200.00
36.00
1107.62
35.9977
1200.00
36.00
1107.62
35.9977
1107.62
35.9977
1200.00
240.00
36.00
144.00
144.00
960.00
28.80
1128.36
36.6716
960.00
28.80
1128.36
36.6716
960.00
28.80
1128.36
36.6716
1128.36
36.6716
960.00
240.00
28.80
115.20
720.00
21.60
1126.78
36.6205
720.00
21.60
1126.78
36.6205
720.00
21.60
1126.78
36.6205
1126.78
36.6205
720.00
240.00
21.60
86.40
480.00
14.40
1123.90
36.5266
480.00
14.40
1123.90
36.5266
480.00
14.40
1123.90
36.5266
1123.90
36.5266
480.00
240.00
14.40
57.60
240.00
7.20
1123.90
36.5266
240.00
7.20
1123.90
36.5266
240.00
7.20
1123.90
36.5266
YEARLY
INTEREST
140.01
143.99
146.69
146.48
146.11
240.00
240.00
7.20
28.80
1123.90
36.5266
1122.74
36.4892
1122.74
36.4892
1122.74
36.4892
1122.74
36.4892
1121.75
36.4568
1121.75
36.4568
1121.75
36.4568
1121.75
36.4568
146.11
145.96
145.83
F -CALCULATION OF PROVISION FOR INCOME TAX
Sr.
No.
PARTICULARS
2nd
Year
3rd
Year
319.97
556.34
1st Year
4th
Year
5th
Year
6th
Year
7th
Year
8th
Year
865.97
1101.23
1319.73
1523.90
1715.82
1830.97
PROFIT AS PER
PROFITABILITY
STATEMENT
ADD :
DEPRECIATION AS
PER
PROTITABILITY
STATEMENT
1115.44
956.58
820.71
704.45
604.95
519.75
446.78
384.26
LESS :
DEPRECIATION AS
PER INCOME TAX
ACT
1746.33
1335.11
1024.17
788.67
610.00
474.14
370.58
291.42
(310.92)
177.81
662.50
1017.00
1314.68
1569.51
1792.02
1923.81
ADJUSTED
PROFITS OR
LOSS()
ADD: CARRIED
FORWARD
LOSSES
PROFIT - LOSSES
BROUGHT
FORWARD
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
231.88
355.95
460.14
439.85
627.21
673.33
5
6
GROSS TOTAL
INCOME TAX
CHAPTER XIV -ASSESSMENT OF WORKING CAPITAL REQUIREMENTS
1)
1st
Year
2nd
Year
3rd
Year
4th
Year
5th
Year
6th
Year
7th
Year
8th
Year
662.92
677.03
691.13
691.13
691.13
691.13
691.13
691.13
Other consumable spares

( excluding those included
under item (I) above )
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Stock in Progress
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Finished Goods
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Receivables from parties
985.80
1006.78
1027.75
1027.75
1027.75
1027.75
1027.75
1027.75
Other current assets
220.16
208.94
210.20
207.79
206.00
204.50
203.24
202.19
1868.89
1892.74
1929.08
1926.67
1924.88
1923.38
1922.12
1921.07
305.27
284.14
290.05
289.46
289.46
289.46
289.46
289.46
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Accrued Expenses
68.51
71.36
72.89
73.17
73.45
73.73
74.00
74.28
Other Current Liabilities
59.15
60.41
61.67
61.67
61.67
61.67
61.67
61.67
432.93
415.91
424.61
424.30
424.57
424.85
425.13
425.41
1435.96
1476.83
1504.48
1502.38
1500.31
1498.53
1496.99
1495.66
358.99
369.21
376.12
375.59
375.08
374.63
374.25
373.92
1076.97
1107.62
1128.36
1126.78
1125.23
1123.90
1122.74
1121.75
140.01
143.99
146.69
146.48
146.28
146.11
145.96
145.83
CURRENT ASSETS
Raw materials (including
stores and other items used
in the process of
manufacture
a) Indigenous
Total Current Assets (1)

2)
CURRENT LIABILITIES
(Other than bank
borrowings for working
capital)
Creditors for purchase of
raw materials and stores
and consumable spares.
Advances from Customers
Total Current Liabilities (II)

3)
Working Capital Gap
4)
Margin on Working Capital
5)
Bank Finance (III-IV)
6)
Interest of Bank
13.00%

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EMINENT TEXTILES

EMINENT TEXTILES , MEERUT

BIO DATA OF THE PARTNERS

PROJECTED BALANCE SHEET

CASH FLOW STATEMENT

BREAK EVEN POINT

STATEMENT OF WORKING CAPITAL

EMINENT TEXTILES, MEERUT

CHAPTER III ESTABLISHMENT

Over Head Traveller

Contingencies, Transportation, Loading

GRAND TOTAL RS. (000)

CHAPTER IV OPERATIONAL ASPECTS

EMINENT TEXTILES, MEERUT

CHAPTER - V - PROJECT AT A GLANCE

295 KG PER DAY PER SHIFT OF 8 HOURS

Land ( Lease Hold )

Factory Building & Site Development

Plant & Machinery

Margin Money for working capital

Kgs. Per Shift Per Working day

No of Shifts per day

Kgs. Per day.

ii) 2nd Year

Kgs. Per day.

iii) 3rd Year

Kgs. Per day.

No. of working days p.a.

No. of shifts per day.

Working Hours Per day.

(a) 360 days

Sales Doubled Yarn

Job Work Rates

Doubled Yarn Job Work

b) Plant & Machinery

ii) Stores Stock

Normal Working Year

CHAPTER VII - DETAILS OF CAPACITY

for Double Yarn

Installed Capacity Per day Per

No. of Working days

Estimated Production Per day

Estimated Annual Production

ii) Sub - Total (i)

ii) Sub - Total (i)

i) Double Yarn 25%

ii) Sub - Total (i)

i) Double Yarn 75%

ii) Sub - Total (i)

Job Work Quantity

Sales ( Amount ) ( Rs . 000 )

Job Work ( Amount ) ( Rs . 000 )

ii) Sub - Total (i)

Total Sales ( Amount ) ( Rs. 000)

CHAPTER VIII -PROJECTIONS OF PERFORMANCE, PROFITABILITY

Sales and Job Work

Less : Excise Duty

Power & Fuel

Direct Labour & Wages

Repairs & Maintenance

Total Cost of Production

Add : Opening stock in progress