Durian furniture and Company

ASSUMPTIONS

1. Suppliers are giving us 3 months credit and there pattern is 60% cash and 40 % credit.
2.Customers are allowed credit period of 3 months
3. Bank rate of loan is assumed as 10 %.
4. Depreciation is charged by written down method.
5. Salary and Wages will increase by 5-10% per year depending on performance and most importa
7. Income tax applicable: 30%.
8.selling price will increase by 3 % every year
9.power is 2% of sales
10. fuel price is 2% of sales
11.Raw materials price is 35% of Sales

e and most importantly sales.

Projected Cost
Item
Land
Building
Plant and Machinery
Vehicles (2 scooters; 2tempos; 5trucks)
Laptops (6)
Furniture and other assets
Working Capital Margin
Total
Means of Finance
Owners' Fund
Loan From Bank
Total

Amount(in Rs. lakhs)

200
300
1000
134
3
3
75
1715

915
800
1715

53.4%
46.6%

Income Statement
Year
Particulars
opening stock
Production
Closing stock
Sales Qty (Items)
Sales Price per unit
Sales
Cost Of Production
Raw Materials
Power
Wages and Salary
Fuel for Transportation
Maintenance
stationery, postage & telephone expenses
Selling Exp
Gross Profit Before Interest
Gross Margin
Total Financial Expenses:
Interest On Bank Borrowings
Depreciation
Operating Profit (PBT)
Tax
Profit After Tax
Profit Carried to B/S

Working Capital workings

Inventory
Debtors
Less: Creditors
Net Working Capital
Net Increase in working capital

A
0
290
10
280
100000
280
142
98
6
20
6
5
2.4
5.6
138
49.4%

340
10

330
103000

340
171
119
7
24
7
5
2.4
6.8
169
49.8%

80

72

87.20
(29)
(29.00)
(29.00)

79.83
18
0.00
17.52
(11.48)

4.40
70
24.50
49.90

4.53
85
29.74
59.77

-49.90

-9.87

4
5
Amount(in Rs. Lakhs)

380

380

380

10

10

10

370

370

370

106,090

109,273

112,551

393
196
137
8
27
8
5
2.4
7.9
197
50.1%

404
201
142
8
28
8
5
2.4
8.1
203
50.2%

416
207
146
8
29
8
5
2.4
8.3
209
50.2%

64

56

48

73.72
59
14.26
44.74
33.27

93.60
53
15.97
37.27
70.54

80.61
81
24.16
56.38
126.91

4.67
98
34.35
68.45

4.81
101
35.38
70.51

4.95
104
36.44
72.62

-8.69

-2.05

-2.12

(Rs. In Lakhs)
Year
Cash from Operating Activity
Net profit
Add: Depriciation
Total
Less: Working Capital changes
Net Cash flow from operating activities
Cash from Financial Activities
Capital
Browings made from Banks
Repayment of Loans or Borrowings
Total

(29)
87
58.20
(49.90)
8.30

18
80
97.35
(9.87)
87.48

915
800
-80.00

1,635

-80.00
(80)

Cash from Investing Activites

Purchase or Sale of Fixed Assets
Total

Opening Balance of Cash

Surplus
Closing Balance of Cash

1,640.00
-1,640.00

3.30
3.30

0
0.00

3.30
7.48
10.78

45
74
118.46
(8.69)
109.77

37
94
130.87
(2.05)
128.81

56
81
136.99
(2.12)
134.87

-80.00

-80.00

-80.00

(80)

(80)

(80)

0
0.00

0
0.00

0
0.00

10.78
29.77
40.55

40.55
48.81
89.37

89.37
54.87
144.24

Year

Owners fund
Reserves & Surplus

915
-29.00

915
-11.48

915
33.27

915
70.54

Borrowing Fund

720.00

640.00

560.00

480.00

24.50

29.74

34.35

35.38

1630.50

1573.26

1542.61

1500.91

1,640.00
87.20
1,552.80

1,640.00
167.03
1,472.98

1,640.00
240.74
1,399.26

1,640.00
334.34
1,305.66

4.40
70.00
3.3

4.53
84.98
10.8

4.67
98.13
40.6

4.81
101.08
89.4

1,630.50

1,573.26

1,542.61

1,500.91

0.00

0.00

0.00

0.00

Liabilities

Current Liabilities & Provisions:

Creditors:
Total
Assets
Fixed Assets
Less: Depreciation
Net Fixed Assets
Current Assets:
Inventory
Debtors
Cash and Bank Balance

Total
Check

915
126.91
400.00

36.44
1478.35

1,640.00
414.95
1,225.05

4.95
104.11
144.2

1,478.35
0.00

YEAR
Remaining Loan Amount
Interest(10%)
Yearly Installment(Principle)
TOTAL YEARLY PAYMENT

Loan Amortization Schedule

1
2
800
720
80
72
80
80
160.00
152.00

Rs in lacs

chedule

Rs in lacs
3
640
64
80
144.00

4
560
56
80
136.00

5
6
7
8
480
400
320
240
48
40
32
24
80
80
80
80
128.00 120.00 112.00 104.00

9
160
16
80
96.00

10
80
8
80
88.00

STATEMENT OF DEPRECIATION (In Lakhs)

Building
PARTICULARS
Rate of Depreciation

5%

Plant &
Office
Machinery Furniture
5%

10%

LAPTOP

Vehicle

60%

15%

Installation as on 01.04.2012
Total
Depreciation (2012-13)
W.D.V. 31.03.2013

300.00
300.00
15.00
285.00

1000.00
1000.00
50.00
950.00

3.00
3.00
0.30
2.70

3.00
3.00
1.80
1.20

134.00
134.00
20.10
113.90

W.D.V. 01.04.2013
Addition during the year
Total
Depreciation (2013-14)
W.D.V. 31.03.2014

285.00
0.00
285.00
14.25
270.75

950.00
0.00
950.00
47.50
902.50

2.70
0.00
2.70
0.27
2.43

1.20
0.00
1.20
0.72
0.48

113.90
0.00
113.90
17.09
96.82

W.D.V. 01.04.2014
Addition during the year
Total
Depreciation (2014-15)
W.D.V. 31.03.2015

270.75
0.00
270.75
13.54
257.21

902.50
0.00
902.50
45.13
857.38

2.43
0.00
2.43
0.24
2.19

0.48
0.00
0.48
0.29
0.19

96.82
0.00
96.82
14.52
82.29

W.D.V. 01.04.2015
Addition during the year
Total
Depreciation (2015-16)
W.D.V. 31.03.2016

257.21
0.00
257.21
12.86
244.35

857.38
0.00
857.38
42.87
814.51

2.19
0.00
2.19
0.22
1.97

0.19
0.00
0.19
0.12
0.08

82.29
0.00
82.29
12.34
69.95

W.D.V. 01.04.2016
Addition during the year
Total
Depreciation (2016-17)
W.D.V. 31.03.2017

244.35
0.00
244.35
12.22
232.13

814.51
0.00
814.51
40.73
773.78

1.97
0.00
1.97
0.20
1.77

0.08
0.00
0.08
0.05
0.03

69.95
0.00
69.95
10.49
59.46

87.20

79.83

73.72

68.41

63.68

HUMAN RESOURCE REQUIREMENT

Factory Staff Requirement Details
Description
Production supervisor
Carpenter
Machine man
Polish man
Carving
Helpers
Factory admin officer
Draftsman / CAD Operator
Purchaser/Store Officer
Gate Keeper
Total Production Staff

No
1
10
1
3
2
2
1
1
1
2
24

Monthly Salary (Rs)

15000
8000
10000
8500
8000
4000
12000
8000
12000
4000

MENT

Total Annual Salary (Rs)

180000
960000
120000
306000
192000
96000
144000
96000
144000
96000
2334000

Machinery & Prices

S.No.
1
2
3
4
5
6

Machinery & Prices

Item and Description
wood cutting trolley
wood seasoning machine
C.A.D.
Shaper machine
spindle/mokling machine
polishing machine

(Rs.in Lacs)
200
190
180
155
145
130

Debt Service Coverage Ratio

Year

Ratio
1
2
3
4
5

#REF!
#REF!
#REF!
#REF!
#REF!

Internal Rate Of Return

Year

Cashflow
0
1
2
3
4
5

Avg
IRR

-147.43
15.62
31.49
39.63
49.06
58.84
38.928
3.787248253

By PVIFA table the NPV will be zero @10% in 5 yrs