ACKNOWLEDGEMENTS

OUR BEST THOUGHTS COME FROM OTHERS

The successful completion of any research project requires guidance and help
from a number of people. I was fortunate to have all the support.
I feel greatly honored in availing this opportunity of expressing my deep gratitude
to Dr. E.M KHAN principal of ABEDA INAMDAR SENIOR COLLEGE OF
ARTS SCIENCE AND COMMERCE PUNE for providing me this opportunity
and guiding me with academics and project work.
I feel greatly delighted to express my deepest sense of gratitude to my learned and
esteem teacher Ms. Shakira shaikh for her valuable assistance, keen interest and
constant motivation at each step and for spending her precious time, without her
help, it would have not been possible for me to complete the project
Last but not the least, I express my sincere thanks to all those people, known and
unknown, who have contributed in making this project a success.

DECLARATION

I, the undersigned, hereby declare that the following documented Project

Report titled BUSINESS LOAN ON SUNRISE AUTOMATIC BAKERY is a
bonafide work prepared by me. This is an organized and authentic work carried by
me for the partial fulfillment of the Bachelor of Business Administration. The
findings in this project report are based on the data collected by me from different
sources.
All the deeds put in the fulfillment of the task are genuine and original to best of
my knowledge.

Date:Place :-

WASIM KHAN

PREFACE
Here are discussing about the project .here we will find out sources
and application of funds, calculation of the revenue, calculation of the
expenditure, interest and installment, calculation of depreciation, cash flow
statement, projected profit & loss a/c, balance sheet.

INDEX
Serial no.
1

2
3
4

Particulars
INTRODUCTION
1.1 SCOPE
1.2 OBJECTIVES
1.3 LIMITATIONS
1.4 VISION AND MISSION
ORGANISATION PROFILE
RESEARCH METHODOGY
FINANCIAL ANALYSIS
4.1 FINANCIAL STATEMENT OF PROJECT
4.2 CALCULATION OF THE REVENUE
4.3 CALCULATION OF EXPENDITURE
4.4 EMI CALCULATION
4.5 CALCULATION OF DEPRECIATION
4.6 PROJECTED CASH FLOW STATEMENT
4.7 PROJECTED BALANCE SHEET
4.8 RATIO ANALYSIS
CONCLUSION
5.1 CONCLUSION
5.2 SUGGESTION
5.3 BIBILOGRAPHY

Page no.

Chapter - 1

INTRODUCTION

SCOPE OF THE PROJECT

The study has a scope to analyze the different loan Schemes of bank and choose
best among them.

The study provides information regarding documentation, paper work and

other important factors involved in getting term loan.

 To be competitive and successful in modern corporate world, constant

capital flow is essential. Whether to expand your business or to relocate your
production unit to some other place for cost effectiveness, you require
finance. Its not always possible to fund them through interest sources. A
delay of a few days can cost you in millions.

Objectives of the Project

To learn preparation of Projected Financial Statements

To learn Deep Analysis of financial Statements

To get knowledge about Loan Procedure

 To get knowledge of prevailing Tax-Rate and Depreciation rates

To get knowledge about the popular SMEs for Self employment

To get knowledge about different Bank Policies for granting Loans.

To get experience of effective and efficient working of an enterprise.

To get practical knowledge about sanctioning loan from bank.

To help the firm by telling its solvency, payment policies etc. with the help

of various different ratios.

LIMITATIONS OF THE PROJECT

Due to the strict confidential policy of the bank the accounts department
provided only screened information.
Accuracy of the data cannot be guaranteed.

 Due to the busy schedule of the manager of the bank the information is very
limited.

MISSION AND VISSION

To become the largest chain of fine bakery products provider in the

Ahmednagar and enjoy equity that is enjoyed by no other stand alone private
bakery.

 To constantly provide quality, taste and services at rational price.

To create wonderful experience uniqueness lies in its elegance refining
which is brought alive by caring their customer.
To provide unique service at rational price and to continually improve our
services and by ensuring to continues satisfaction of the clients.
We shall ensure high standards of safety and security while at manufacturing
which doesnt harm the environment in any way.

Chapter -2

Company Profile

SUNRISE AUTOMATIC BAKERS

Sunrise Bakers is a new venture established in 2009 by Abdul Rehman

Chaus.It is a single ownership business setup there is no partner in the business.
The interest of mass in bakery business has been increasing day by day. But,
Sunrise Bakers is successful in attracting more and more customers by its fluent
service and product quality.

It provides quality products with efficient quantity. The behavior with the
customers is specially taken care off. which attracts more customers to buy the
bakery products.
The bakery focuses mainly on two areas:
Profit maximization
Customer satisfaction

Company Profile

PROFILE OF THE COMPANY

Legal Name

SUNRISE AUTOMATIC BAKERY

Location

PLOT NO. 150 INDL.ESTATE, PUNE

ROAD, AHMEDNAGAR - 414005,
MAHARASHTRA, INDIA

Telephone numbers

+91-241-2343832

E-mail

office@sunrise-bakery.com

Contact person

Mr. Ali Chaus (Manager)

Website

WWW.SUNRISE-BAKERY.ORG

Year of establishment

2009

Proprietor

Mr. Abdul Rehman Chaus

PRODUCTS
Cakes
Doughnut
Puffs
Rusk
Pizza
Buns
Pastries
Brownies
Biscuit
Breads

Swiss roll
Cookies
Khari

These are the main items produced in bakery.

These items are further produced in different varieties according to their
specialties.
As many different items are prepared in bakery in various manners.
The further classification of the items is done below:

Product ranges

Yeast donut
Cake donut
Egg puff
Milk Rusk
Whole wheat Rusk
Condensed milk Rusk
Sweet buns
Naan
Chocolate biscuit
Coconut biscuit
Coffee biscuit
Dry fruits biscuit
Whole meal bread
Rye bread
Multigrain bread
Sugar free bread
Almond and date cookies
Butter scotch cookies
Cashew cookies
Jeera khari
Masala khari
Maska khari
Methi khari
Swiss roll
cakes

1 year sales value approximately

Sr. no
1
2
3
4
5
6
7
8
9
10
11
12
13

Items
Cakes
Doughnut
Puffs
Rusk
Pizza
Buns
Pastries
Brownies
Biscuits
Breads
Swiss roll
Cookies
Khari

Quantity
32000
15000
15000
1500kg
3000
60000
9000pkt
900kg
3000kg
15000pkt
6000
900kg
1600kg
TOTAL

Price
800000
250000
250000
270000
260000
350000
300000
250000
650000
500000
220000
300000
400000
4800000

LAND AND BUILDING

A built up unit is about 1600 sq.ft. is adequate. The production area should
be about 500 sq.ft. And can be divided into two major sections. One would have
furnaces (bhattis) and the second one would accommodate the bakery, sales portion
is 300 sq.ft. A packing room is about 200 sq.ft. and raw materials storage of 200
sq.ft. is sufficient. Finished goods godown can be accommodated in 200 sq.ft.
outer portion of 200 sq.ft.

The rent of this kind of unit would vary according to the location but we can
consider the rent to be approximately Rs.20000.

MACHINES REQUIRED
Cost of machines:
Sr.no. Description
1
Mixers
2
Ovens
3
Depositor
4
Divider

Amount
300000
100000
50000
50000

Other requirements for production and storage purposes are as follows:

Sr.no.
1
2
3
4
5
6
7
8
9

Description
Proverbs
Egg breakers
Slicers
Moulds
Dough sheeters
Dough moulder
Cookie cutter
Pan and trays
Frizer

In all the total cost of machines is Rs.800000

RAW MATERIAL

Dry yeast
wheat flour
pea flour
corn meal
potato flour
rice flour
ghee
baking fruit & nut mix
bread mix
chocolate berry
cookie drop mix
non fat milk
low heat non fat milk
buttermilk powder
malted milk powder
baking powder
baking soda
cream of tartar
cocoa powder
egg powder
egg white
egg yolk powder
vital wheat gluten
whey powder
com starch
potato starch
dextrose
fruit sugar
honey powder
milk sugar

organic sugar
maltitol powder
xylitol crystale
chocolate sprinkle
dark green sprinkle
white sprinkle
rainbow sprinkle
baking chocolate
bowl scrapper
baking drops
chocolate chips

MANPOWER REQUIREMENT

Salary and wages are on monthly basis.

Sr. No.
Designation

No.

Rate

Amount

Salary

10000

30000

Wages

7000

35000

Total

65000

CHAPTER 4

RESEARCH
METHODOLOGY

Research:
Research is a careful of critical inquiry or examination in seeking facts or
principles, diligent investigation in order to ascertaining something
Research is the manipulation of things, concepts or symbols for the process
of generalizing to extend, correct or verify knowledge, whether that
knowledge aids in construction of theory or in the practice of an art
Research is a more systematic activity directed towards discovery and
development of an organized body of knowledge

METHODS OF DATA COLLECTION

1 Primary Data
2 Secondary Data

1 Primary Data:
Primary data are obtained by a study specifically designed
to fulfill the data needs of the problem at hand. Such data are original in
character and are governed in large number of surveys conducted mostly by
government and also by some individuals, institutions and research bodies.

2 Secondary Data:
Data which is not originally collected but rather obtained
from published and unpublished sources are known as secondary data .The
secondary data constitute the chief material on the basis of which statistical
work is carried out in many investigations.

ADVANTAGES TO USE THE PRIMARY SOURCE

1 Primary source shows data in regular detail.
2 It frequently defines terms and nits used.
3 The secondary source may contain mistakes due to errors in transcription
made when the figures were copied from the primary source.

ADVANTAGES OF SECONDARY DATA:

1 If secondary data are available, they are much quicker to obtain than primary
data.
2 It may available on some subjects where it would be impossible to collect
primary data.

METHODS OF DATA COLLECTION

The methods and the techniques that can be uses to generate the primary as well as
the secondary data are as follows:
1
2
3
4

Visiting Bank.
By going through the website on the internet.
By words of mouth.
Information provided by the bank.

DOCUMENTS REQUIRED FOR SANCTION OF LOAN FOR BUSINESS

1. Proof of identity. (Copy of sales tax/ vat/ Service tax/ Excise registration
receipt or registration under shop and establishment act or pan/ It return of
the concern or water/ Electricity municipal tax bill in the name of concern)
2. Proof of individual identity. (Copy of passport/ Voters identity card/ Photo
pan card/ Driving license)
3. Proof of residence address. (Copy of passport/ Voters identity card/ Driving
license/ Ration card/ Life insurance policy/ Electricity bill/ Telephone bill)
4. Pan number / form 60 of the concern.
5. Financial documents. (Copy of P&L a/c and Balance sheet for last two
years, Audited by a C.A and copies of it returns for the last two years)
6. Bank statement for last 6 months.
7. Partnership deed. (Required only in case of partnership firm)
8. Proof of place of business.
9. Two passport size photographs.

PURPOSE OF THE LOAN

The basic idea behind taking the loan from the bank is to start a new Bakery.
The company is supposed to provide services consistently with taking good care
of the users.
The firm requires term loan of Rs.962500.00 to set up a company..
The most essential part of taking loan from the bank is to have working capital
in hand.
The loan taken from the bank will repaid in five years.

CHAPTER - 4

FINACIAL ANALYSIS

Projected cost

Sr.no.

Fixed capital

Amount

Equipments

800000

Furniture

100000

Computer

20000

Fixtures

10000

Total

930000

Working capital
Raw material
Labours
Utility
Other expenses
Salary
Advertisement
Transportation
Sundry expenses
telephone bills
electricity bills
Rent
Packaging
Total

Amount
185000
35000
15000

Sr. no.
1
2
3
4
5
6
7
8
9
10
11

30000
5000
10000
5000
2000
15000
20000
8000
330000

Deposit
Registrations
Total Project cost

100000
15000
1375000

INVESTMENT COST OF THE PROJECT

FINANCIAL DETAILS OF THE PROJECT

SERIA
L

PARTICULARS

AMOUNT

BANK FINANCE

(70%)

962500

OWN FUND

(30%)

412500

TOTAL COST OF THE PROJECT

1375000

Total Project cost

1375000

30%
Own capital

70%
bank loan

Means of Finance
Own Fund

Term Loan

30%

70%

30% own capital =412500

70% bank loan= 962500

STATEMENT SHOWING REVENUE FOR PROJECTED

PERIOD
Particulars

1 YEAR

2 YEAR

3 YEAR

4 YEAR

5 YEAR

Cakes

800000

870000

890000

910000

920000

Doughnut

250000

270000

280000

290000

300000

Puffs

250000

273000

277000

287000

297000

Rusk

270000

272000

282000

292000

302000

Pizza

260000

271000

291000

301000

311000

Buns

350000

360000

370000

380000

390000

Pastries

300000

310000

320000

330000

340000

Brownies

250000

260000

265000

275000

280000

Biscuits

650000

710000

720000

730000

740000

Breads

500000

560000

565000

580000

585000

Swiss roll

220000

240000

245000

250000

255000

Cookies

300000

320000

330000

350000

360000

Khari

400000

430000

435000

439000

440000

Total

480000 513600 528000 542400 552000

0
0
0
0
0

CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN FOR

1ST YEAR

YEAR

MONTH

EMI

PRINCIPAL

INTREST

CLOSING BALANCE

22396

11164

11232

951336

22396

11294

11102

940042

22396

11426

10970

928616

22396

11559

10837

917057

22396

11694

10702

905363

22396

11830

10566

893533

22396

11968

10427

881565

22396

12108

10288

869457

22396

12249

10146

857208

10

22396

12392

10004

844816

11

22396

12537

9859

832279

12

22396

12683

9713

819596

TOTAL

268748

CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN FOR

2nd

YEAR

YEAR

MONTH

EMI

PRINCIPAL

INTREST

CLOSING BALANCE

22396

12831

9564

806765

22396

12981

9415

793784

22396

13132

9263

780651

22396

13286

9110

767365

22396

13441

8955

753924

22396

13598

8798

740326

22396

13756

8640

726570

22396

13917

8479

712653

22396

14079

8317

698574

10

22396

14244

8152

684330

11

22396

14410

7986

669920

12

22396

14578

7818

655342

TOTAL

268748

CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN FOR

3rd YEAR

YEAR

MONTH

EMI

PRINCIPAL

INTREST

CLOSING
BALANCE

22396

14748

7648

640594

22396

14920

7476

625674

22396

15094

7302

610580

22396

15271

7125

595309

22396

15449

6947

579860

22396

15629

6767

564231

22396

15811

6584

548420

22396

15996

6400

532424

22396

16183

6213

516241

10

22396

16371

6025

499870

11

22396

16563

5833

483307

12

22396

16756

5640

466551

TOTAL

268748

CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN FOR

4th YEAR

YEAR

MONTH

EMI

PRINCIPAL

INTREST

CLOSING
BALANCE

22396

16951

5445

449599

22396

17149

5247

432450

22396

17349

5047

415100

22396

17552

4844

397548

22396

17757

4639

379791

22396

17964

4432

361827

22396

18173

4222

343654

22396

18386

4010

325268

22396

18600

3796

306668

10

22396

18817

3579

287851

11

22396

19037

3359

268814

12

22396

19259

3137

249555

TOTAL

268748

CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN FOR

5th YEAR

YEAR

MONTH

EMI

PRINCIPAL

INTREST

CLOSING
BALANCE

22396

19484

2912

230071

22396

19711

2685

210360

22396

19941

2455

190419

22396

20174

2222

170245

22396

20409

1987

149836

22396

20647

1749

129189

22396

20888

1508

108301

22396

21132

1264

87169

22396

21379

1017

65790

10

22396

21628

768

44162

11

22396

21881

515

22135

12

22396

22135

260

00000

TOTAL

268748

Calculation of depreciation on the assets

Depreciation on Furniture:

YEARS

W.D.V OF THE
ASSET

ADDITIONS

TOTAL
DEPRECIATION
DEPRECIABLE
@ 10%
AMOUNT

CLOSING
AMOUNT
OF ASSET

100000

100000

10000

90000

90000

90000

9000

81000

81000

81000

8100

72900

72900

72900

7290

65610

65610

65610

6561

59049

2
3
4

Depreciation on computer:

YEARS

W.D.V OF THE
ASSET

ADDITIONS

TOTAL
DEPRECIABLE
AMOUNT

DEPRECIATIO
N @ 50%

CLOSING
AMOUNT
OF ASSET

20000

20000

10000

10000

10000

10000

5000

5000

5000

5000

2500

2500

2500

2500

1250

1250

1250

1250

625

625

2
3
4

Depreciation on Fixture:

YEARS

W.D.V OF THE
ASSET

ADDITION
S

TOTAL
DEPRECIABLE
AMOUNT

DEPRECIATIO
N @ 10%

CLOSING
AMOUNT OF
ASSET

10000

10000

1000

9000

9000

9000

900

8100

8100

8100

810

7290

7290

7290

729

6561

6561

6561

656

5905

2
3
4
5

Depreciation on EQUIPMENT:

YEARS

W.D.V OF THE
ASSET

ADDITION
S

TOTAL
DEPRECIABLE
AMOUNT

DEPRECIATIO
N @ 10%

CLOSING
AMOUNT OF
ASSET

800000

800000

80000

720000

720000

720000

72000

648000

648000

648000

64800

583200

583200

583200

58320

524880

524880

524880

52488

47392

2
3
4
5

1st year

Trading & profit & loss account

particulars
To purchases
To wages
To utilities
To gross profit
To salary
To advertisement
To transport
To sundry
To telephone
To electricity
To rent
To packing
To interest
To depreciation
To preli.exp. w/o
To NPBT

Amount
2220000
420000
180000
1980000
4800000
360000
60000
120000
60000
24000
180000
240000
96000
125808
101000
3000
610192

particulars
By sales

Amount
4800000

By gross profit

4800000
1980000

1980000

Cash flow statement:

inflow
Own capital
Bank loan
sales

Amount
412500
962500
4800000

Outflow
Working capital
Tax
EMI
Fixed assets
Registration
Deposit
Cash in hand

6175000

Amount
3960000
48815
268748
930000
15000
100000
852437
6175000

Balance sheet
liabilities
Own capital

Amount
973877

Assets
Fixed assets

Bank loan

819560

Current assets:

1793437

Amount
829000

Cash in hand

852437

Deposit
Miscellaneous
expenses:
Preliminary ex.

100000

12000
1793437

2nd year
Trading and profit and loss a/c
particulars
To purchases
To wages
To utilities
To gross profit
To salary
To advertisement
To transport
To sundry
To telephone
To electricity
To rent
To packing
To interest
To depn
To preli.exp.
w/o
To NPBT

Amount
2331000
441000
189000
2175000
5136000

Particulars
By sales

378000
63000
126000
63000
252000
189000
252000
100800
104462
86900
3000

By gross profit

783638

Amount
5136000

5136000
2175000

2175000

Cash flow statement

Inflow
Opening cash
Sales

Amount
852437
5136000

Outflow
Working capital
Tax
EMI
Cash in hand

5988437

Amount
4158000
62691
268748
1498998
5988437

Balance sheet
liabilities
Own capital

Amount
1694824

Bank loan

655274

2350098

Assets
Fixed assets

Amount
742100

Cash in hand
Deposit
Preliminary ex.

1498998
100000
9000
2350098

3rd year

Particulars
To purchases
To wages
To utilities
To gross profit
To salary
To advertisement
To transport
To sundry
To telephone
To electricity
To rent
To packing
To interest
To depn
To preli.exp.
w/o
To NPBT

Trading and profit and loss account

Amount
Particulars
2375400
By sales
449400
192600
2262600
5280000
385200
64200
128400
64200
25680
192600
256800
102720
79927
76210
3000
883663

By gross profit

Amount
5280000

5280000
2262600

2262600

Cash flow statement

Inflow
Opening cash
Sales

Amount
1498998
5280000

Outflow
Working capital
Tax
EMI
Cash in hand

6778998

Amount
4237200
70693
268748
2202357
6778998

Balance sheet
liabilities
Own capital

Amount
2507794

Assets
Fixed assets

Amount
665890

Bank loan

466453

Cash in hand

2202357

Deposit
Preliminary ex.

100000
6000

2974247

2974247

4th year
Trading and profit and loss account
Particulars
To purchases
To wages
To utilities
To gross profit
To salary
To advertisement
To transport
To sundry
To telephone
To electricity
To rent
To packing
To interest
To depn
To preli.exp.
w/o
To NPBT

Amount
2419800
457800
196200
2350200
5424000

Particulars
By sales

392400
65400
130800
65400
26160
196200
261600
104640
51728
67589
3000

By gross profit

985283

Amount
5424000

5424000
2350200

2350200

Cash flow statement

inflow
Opening cash
sales

Amount
2202357
5424000

Outflow
Working capital
Tax
EMI
Cash in hand

7626357

Amount
4316400
78822
268748
2962387
7626357

Balance sheet
liabilities
Own capital

Amount
3414255

Assets
Fixed assets

Amount
598301

Bank loan

249433

Cash in hand

2962387

Deposit
Preliminary ex.

100000
3000

3663688

3663688

5th year
Particulars
To purchases
To wages
To utilities
To gross profit
To salary
To advertisement
To transport
To sundry
To telephone
To electricity
To rent
To packing
To interest
To depn
To preli.exp.
w/o
To NPBT

Trading and profit and loss account

Amount
Particulars
2464200
By sales
466200
199800
2389800
5520000
399600
66600
133200
66600
26640
199800
266400
106560
19317
60330
3000
1041753

By gross profit

Amount
5520000

5520000
2389800

2389800

Cash flow statement

Inflow
Opening cash
Sales

Amount
2962387
5520000

Outflow
Working capital
Tax
EMI
Cash in hand

8482387

Amount
4395600
83340
268748
3734699
8482387

Balance sheet
liabilities
Own capital

Amount
4372668

Assets
Fixed assets

Amount
537971

Bank loan

Cash in hand

3734699

Deposit
Preliminary ex.

100000
0

4372670

4372670

YEARLY
CASH IN HAND GRAPH

4000000

3734699

3500000
2962387

3000000
2500000

2202357

2000000
1498998

1500000
1000000

852437

500000
0

year1

year2

year3
Series 1

year4

year5

CALCULATION OF RATIO ANALYSIS

Year
1
2
3
4
5

Net profit ratio=sales/net profit

4800000/561377=8.55
5136000/720947=7.12
5280000/812970=6.49
5424000/906461=5.98
5520000/958413=5.75

Year
1
2
3
4
5

Fixed assets to current assets=fixed assets/current assets

829000/952437=0.87
742100/1598998=0.46
665890/2302357=0.28
598301/3062387=0.19
537971/3834699=0.14

Year

Debt service coverage ratio=

Net profit after tax+depreciation+interest/interest+installment
788185/394556=1.99
912309/373210=2.44
969107/348675=2.77
1025778/320476=3.20
1038060/288065=3.60

1
2
3
4
5

CHAPTER - 5

CONCLUSION

Conclusion of the project

After the study we came to the conclusion that loan sanction required too
many legal formalities to be completed and many legal documents to be submitted
to the bank but since the confectionary industry is the rising industry we can get
the loan sanctioned easily.
From this observation we can say that bakery business can be in profit which
will enable us to pay back the loan installment on time.

SUGGESTIONS

 The Bakery should perform its activities according to the pre- planned.

Continuous taking of the customer are one of the main reason for growth
of the business.

To be a successful Company and aiming to expand business in future and

all the necessary activities should be done in advance which will make
you approach your dream.

BIBILOGRAPHY

Referred books:
Financial management :

Khan & Jain

Financial management :

S N Mahesh

Research Methodology:

C.K.Kothari.

WEBLINKS:
1.
2.
3.
4.
5.

www.justdial.com
www.yellopages.com
www.wikipedia.org
www.askme.com
www.yahooanswers.com