WORKING TABLES

Profitability Appraisal
A) Basic Data
1 No of working days per month
2 Annual working days

25
250

3 Installed daily capacity

1 MT per day

4 Operating daiy capacity

1 MT per day

5 No of shifts per day

Single

6 Capacity at 100% utilisation

7 Input out put ratio
Input
(Plastic Granuals)

250 MT per annum

100 %

Out put
Drip Irrigation Pipes
Processed Loss

85 %
15 %

8 Rates of Input and out put material

Plastic Granuals

100000 Per MT

Drip Irrigation Pipes

140000 Per MT

9 Capacity utilisation
Particulars

Year 1

Year 2

Year 3

Year 4

Year 5

Installed capacity
Utilisation

250
60.0%

250
62.5%

250
65.0%

250
67.5%

250
70.0%

Input in MT
(Plastic Granuals)

150
150

156.25
156.25

162.5
162.5

168.75
168.75

175
175

127.5
22.5

132.8125
23.4375

138.125
24.375

143.4375
25.3125

148.75
26.25

150

156.25

162.5

168.75

175

Out put in MT
Drip Irrigation Pipes
Weight Loss
Total

10 Cost of project
Cost already
incurred

Particulars

Cost yet to be
incurred

Total Cost

1 Land

2.50

2.50

2 Building/ Factory Shed

12.00

12.00

3 Plant and Machinery

9.00

9.00

4 Preli. & Pre-Op. Exp.

0.25

0.25

0.03

0.03

23.78

23.78

5 Working capital m. money

Total Rs

10 Means of Finance
Means already
raised

Particulars

Total Means

1 Proprietor's contribution

11.78

11.78

2 Unsured loan (qausi equity)

2.00

2.00

3 Bank Term loan

10.00

10.00

4 MFPL Subsidy

Total Rs.

14.0%

23.78

23.78

5.00

5.00

14.00%

Year 1

Year 2

Year 3

Year 4

Year 5

250

250

250

250

250

127.5

132.8125

138.125

143.4375

148.75

Add Opening Stock of WIP

0.000

1.020

1.063

1.105

1.148

Less Closing Stock of WIP

1.020

1.063

1.105

1.148

1.190

Add Opening stock of F.G.

0.000

2.445

2.547

2.649

2.751

Less Closing Stock of F.G.

2.445

2.547

2.649

2.751

2.853

124.035

132.668

137.981

143.293

148.606

Rater per mt

1.4

1.4

1.4

1.4

1.4

Sale revenue

173.65

185.74

193.17

200.61

208.05

Total Sales

173.65

185.74

193.17

200.61

208.05

Bank CC

B)

Means yet to be
raised

Tables showing details of each item of profitability

1 Sales Revenue
Particulars
Capacity utilisation
A) Drip Irrigation Pipes
Output

Sales

1 Raw material Consumed- Potato/ Tomato

Particulars

Year 1

Year 2

Input of Raw Material

Year 5

156.25

162.5

168.75

175

4.2

4.375

4.55

4.725

4.9

4.2

4.375

4.55

4.725

154.2

156.425

162.675

168.925

175.175

154.20

156.43

162.68

168.93

175.18

Less Opening stock of R.M.

Rate per mt
Raw material purchase

Year 4

150

Add Closing stock of R.M.

Purchases

Year 3

2 Power and Fuel

A) Power
Contracted load
Consumption of power at 100% capacity
HP X 0.746 X 8 hours X 300 days x Rs. 7.50 per unit

50 HP

=
=
Add 5% for slack period

74600 Units
335700 Rupees
16785 Rupees

Total Power

352485 Rupees
3.52 Lacs

B) Fuel
Wood for boiler and drier machine
Total MT at 100% capacity
Fuel at 100% capacity

Rupees

1000 Per MT
100
1.00 Lacs

Total power and fuel at 100% capacity

Particulars
Power and fuel

Year 1

4.52 Lacs
Year 2

2.71

Year 3
2.83

Year 4
2.94

Year 5
3.05

3.17

2 Labor and Wages

Particulars of persons

No of persons

Per month salary Annual Salary

1 Manager

15000

180000

2 Sales Supervisor
3 Computer Operator

1
1

6000
6000

72000
72000

4 Skilled labors

4500

108000

5 Unskilled laborers

3000

72000

6 Watchman

1800

21600

Total Rs
Say Rs.
Particulars

Year 1

1 Labour charges

Year 2
5.26

Year 3
5.52

525600
5.26
Year 4

5.79

Year 5
6.08

6.39

3 Consumable stores
Other Spareparts
Packing Material

Con. Per mt
1000
200

Total per MT
Particulars

1200
Year 1

Processing MT
Consumable stores

Year 2
150
1.80

Year 3
156
1.88

Year 4
163
1.95

Year 5
169
2.03

175
2.10

4 Repairs and Maintenance

Particulars
Fixed assets cost

Year 1

Year 2

Year 3

Year 4

Year 5

21

Repairs and Mainten.

0.21

0.23

0.25

0.28

0.31

5 Other Manufacturing exp.

These include factory insurances, milling charges, weighment charges, Hamali Cartage & Lorry Frieght etc.
Per MT
50 Per MT
Particulars
Processing MT
Consumable stores

Year 1

Year 2
150
0.08

Year 3
156
0.08

Year 4
163
0.08

Year 5
169
0.08

175
0.09

6 Depreciation
Particulars of assets
Building - Op. Bal.
Dep. @

Year 1

10%

WDV
Plant and Machinery
Dep @
15%

Total Dep

Year 2

Year 3

Year 4

Year 5

12

10.8

9.72

8.748

7.8732

1.20

1.08

0.97

0.87

0.79

10.80

9.72

8.75

7.87

7.09

9.00
1.35

7.65
1.15

6.50
0.98

5.53
0.83

4.70
0.70

7.65

6.50

5.53

4.70

3.99

2.55

2.23

1.95

1.70

1.49

7 Bank Interest (as per schedule)

Particulars of loans
Year 1
a) Term Loan
Opening Balance
Int. on T.L.
14.0%
Repayment
Closing Balance

Year 2

Year 3

Year 4

Year 5

10.00
1.32
1.11
8.89

8.89
1.01
2.22
6.67

6.67
0.70
2.22
4.44

4.44
0.39
2.22
2.22

2.22
0.08
2.22
0.00

0.70

0.70

0.70

0.70

0.70

2.02

1.71

1.40

1.09

0.78

Term loan Interest

b) Int. of CC

14.0%

Total Interest
8 Sales and administrative expenses
Particulars of expenses
1
2
3
4
5
6
7

Per month exp.

Office staff salary

Travelling exp
Telephone exp
Stationery and printing
Misc. & office exp
Commission
Other sales exp

Annual exp.

10000
3000
2500
1000
1000
20000
3000

120000
36000
30000
12000
12000
240000
36000
486000
4.86

Total Rs
Say Rs.

Particulars
1 Sales and admin.exp.

Year 1

Year 2
4.86

Year 3
5.10

Year 4
5.36

Year 5
5.63

5.91

ANNEXURE 07:- ASSESSMENT OF WORKING CAPITAL REQUIRED

Sr.
No Particulars

Per day in
Ton

Rate per
Ton in Lacs

Value of
Stock per
Quantity Amount Year
day
No of days in Ton
01

Amount
Year 02

Amount
Year 03

Amount
Year 04

Amount
Year 5

Stock of raw material

(300 days prod.)

0.600

1.0000

0.60

4.20

4.20

4.38

4.55

4.73

4.90

Stock of WIP

0.600

1.0335

0.62

1.20

1.24

1.29

1.34

1.40

1.45

0.349

1.2883

0.45

2.45

3.15

3.28

3.41

3.54

3.68

0.349

1.4000

0.49

10

3.49

4.89

5.09

5.30

5.50

5.71

13.48

14.04

14.60

15.17

15.73

8.45

8.80

9.15

9.51

9.86

(R.M. + 50% of Manu.exp.)

(300 days prod.)
4

Stock of finished goods

at Cost of Sales (365 days Sales)
Drip Irrigation

Sundry Debtors (365 days sales)

Drip Irrigation
Total Rs.

Less: Sundry Creditors

0.422

1.0000

0.42

20

8.45

Net Working Capital required

5.03

5.24

5.45

5.66

5.87

Bank CC Required

5.00

5.00

5.00

5.00

5.00

Working Capital margin money

Additional investment

0.03
0.21

0.21

0.21

0.21

ANNEXURE 01: PROJECTED PROFITABILITY FOR NEXT 05 YEARS

Name of unit

Break even point

% of installed capacity
Break even quanity
Value Rs. In lacs

Particular
Production during the year

0.23
865.07
61.79

Year 01

Year 2

Year 3

Year 4

Year 5

250
60%

250
63%

250
65%

250
68%

250
70%

1. Sales incl. all misc. receipts

Drip Irrigation Pipes
2. Less Excise

173.65
0.00

185.74
0.00

193.17
0.00

200.61
0.00

208.05
0.00

3. Net Sales

173.65

185.74

193.17

200.61

208.05

4. Raw Material purchase

5. Power and fuel

154.20
2.71

156.43
2.83

162.68
2.94

168.93
3.05

175.18
3.17

6. Direct labor and wages

7. Consumable Stores

5.26
1.80

5.52
1.88

5.79
1.95

6.08
2.03

6.39
2.10

8. Repairs and Maintainence

9 Other manufacturing exp.
10. Depreciation

0.21
0.08
2.55

0.23
0.08
2.23

0.25
0.08
1.95

0.28
0.08
1.70

0.31
0.09
1.49

166.81

169.18

175.64

182.16

188.72

11. Add Opening stock of WIP & RM

5.44

5.67

5.89

6.12

Add Opening stock of FG

12.Less Closing stock of WIP& RM
Less Closing stock of FG

0
5.44
3.15

3.15
5.67
3.28

3.28
5.89
3.41

3.41
6.12
3.54

3.54
6.35
3.68

C) Cost of Sales

158.22

168.83

175.29

181.80

188.36

D) Gross Profit

15.43

16.91

17.89

18.81

19.69

1.32
0.70

1.01
0.70

0.70
0.70

0.39
0.70

0.08
0.70

F) Sales, admin. & Gen. exp.

4.86

5.10

5.36

5.63

5.91

G) Prel. & Pre-operative exp. W.off

0.05

0.05

0.05

0.05

0.05

H) Profit Before taxation

8.50

10.05

11.08

12.05

12.95

I) Provision for taxation

0.85

1.00

1.11

1.20

1.30

J) Net Profit after tax

7.65

9.04

9.97

10.84

11.66

K) Add Back Depreciation

L) Add Back Prel. Exp. W. off

2.55
0.05

2.23
0.05

1.95
0.05

1.70
0.05

1.49
0.05

M) Net Cash Accruals

10.25

11.32

11.97

12.60

13.20

L) Repayment obligation

1.11

2.22

2.22

2.22

2.22

Quantity
% utilisation of installed capacity
A) Sales

B) Cost of Production

Total Cost of production

E) Interest
i) Term Loan
ii) Working capital

M) Debt Service Coverage ratio

4.76

3.81

4.34

4.97

5.77

ANNEXURE 02: PROJECTED CASH FLOW FOR NEXT 05 YEARS

Particulars

Constructi
on period Year 01

Year 3

Year 3

Year 4

Year 5

A) Sources of Fund
1 Cash Accruals

10.57

11.81

12.53

13.19

13.78

2.55

2.23

1.95

1.70

1.49

5 Increase in un. Loan

2.00

6 Increase in bank CC

5.00

(Net profit before tax to which interest

shall be added )
2 Proprietor's Capital

13.75

(1.97)

3 Depreciation
4 Increase in long term loan

7 MFPL Subsidy
Total Sources (A)

10.00
###

###

23.75

18.15

14.03

14.48

14.89

15.27

B) Disposition of Funds
Particulars
1 Preli. & pre-op. exp.

Constructi
on period

Year 01

Year 3

Year 3

Year 4

Year 5

0.25

###

###

23.50

###

###

3 Increase in current assets

5.03

0.21

0.21

0.21

0.21

4 Repayment of Term loans (int.+instal)

2.43

3.23

2.92

2.61

2.30

5 Payment of Cash Credit interest

0.70

0.70

0.70

0.70

0.70

6 Investment

3.00

3.00

###

3.00

###

7 Tax payment

0.85

1.00

1.11

1.20

1.30

8 Drawings

2.00

2.00

###

2.00

###

14.01

10.15

9.94

9.73

9.50

4.14
4.14

4.14
3.89
8.03

8.03
4.54
12.56

12.56
5.16
17.73

17.73
5.77
23.49

2 Increase in capital exp.

Total outflow (B)

23.75

C) Cash position
Opening Balance
Net Surplus
Closing Balance

ANNEXURE 03: PROJECTED BALANCE SHEET FOR NEXT 05 YEARS

Capital and Liabilities

Year 01

1 Capital account of prop

Opening Balance

Year 3

Year 3

Year 4

Year 5

11.78

17.43

24.47

32.44

41.29

7.65
2.00

9.04
2.00

9.97
2.00

10.84
2.00

11.66
2.00

Closing Balance

17.43

24.47

32.44

41.29

50.94

2 Unsecured loans

2.00

2.00

2.00

2.00

2.00

4 Term loan

8.89

6.67

4.44

2.22

5 Cash Credit

5.00

5.00

5.00

5.00

5.00

6 Current Liabilities

8.45

8.80

9.15

9.51

9.86

41.77

46.94

53.04

60.01

67.80

Add: Net Profit after tax

Less Drawings

3 MFPL Subsidy

Total Rs

Assets and Properties

Year 01

Year 3

Year 3

Year 4

Year 5

1
Fixed Assets Gross Block

23.50

20.95

18.72

16.78

15.07

Less Depreciation
Net Block

2.55
20.95

2.23
18.72

1.95
16.78

1.70
15.07

1.49
13.58

2
MSEB Deposits

3.00

6.00

9.00

12.00

15.00

Stock of Raw material

Stock of WIP

4.20
1.24

4.38
1.29

4.55
1.34

4.73
1.40

4.90
1.45

Stock of finished goods

Sundry Debtors
Preli. & pre-Op. exp.

3.15
4.89
0.20

3.28
5.09
0.15

3.41
5.30
0.10

3.54
5.50
0.05

3.68
5.71
-

Cash and bank balance

4.14

8.03

12.56

17.73

23.49

41.77

46.94

53.04

60.01

67.80

Investment

3
Current Assets

Total Rs.

ANNEXURE 04: DEBT SERVICE COVERAGE RATIO

Particulars

Year 01

Year 3

Year 3

Year 4

Year 5

1
2 Net Profit after tax

7.65

9.04

9.97

10.84

11.66

3 Depreciation
3 Prel. Exp. W. Off

2.55
0.05

2.23
0.05

1.95
0.05

1.70
0.05

1.49
0.05

Interest on term loan

1.32

1.01

0.70

0.39

0.08

Total Rs

11.57

12.33

12.67

12.98

13.28

1 Particulars

Year 01

EMI (Repayment of T.L. & Int.)

Interest

Year 3

Year 3

Year 4

Year 5

1.11
1.32

2.22
1.01

2.22
0.70

2.22
0.39

2.22
0.08

Total Rs.

2.43

3.23

2.92

2.61

2.30

DSCR

4.76

3.81

4.34

4.97

5.77

Average

4.73

ANNEXURE 05: BREAK EVEN ANALYSIS

Particulars
Sales Revenue

Year 01
Year 3
173.65

185.74

193.17

200.61

208.05

173.65

185.74

193.17

200.61

208.05

145.61
2.17

156.07
2.26

162.32
2.35

168.57
2.44

174.82
2.53

3 Direct labor and wages

4 Consumable Stores

4.20
1.80

4.42
1.88

4.64
1.95

4.87
2.03

5.11
2.10

5 Repairs and Maintainence

6 Other manufacturing exp.
7 Selling & Admistration Exp.

0.15
0.08
4.86

0.16
0.08
5.10

0.18
0.08
5.36

0.20
0.08
5.63

0.22
0.09
5.91

158.87

169.96

176.87

183.81

190.77

14.78

15.77

16.30

16.80

17.28

1 Power and fuel

2 Direct labor and wages

0.54
1.05

0.57
1.10

0.59
1.16

0.61
1.22

0.63
1.28

3 Repairs and Maintainence

4 Depreciation

0.06
2.55

0.07
2.23

0.08
1.95

0.08
1.70

0.09
1.49

5 Interest

2.02

1.71

1.40

1.09

0.78

6.23

5.68

5.17

4.70

4.27

8.51

8.49

8.44

8.38

8.30

73.19

66.85

61.28

56.17

51.46

Total Sales
B

Total Rs.

Year 4

Year 5

Cost of production
1 Raw Material
2 Power and fuel

Year 3

Contribution ( Sales - Variable Cost )

Fixed Cost

Total Rs.
P.V.Ratio

Contribution / Sales X 100

=

Break Even Point =

=

Fixed Cost / P.V.Ratio

Rs. In Lacs

Selling Per MT

Average
140000 Rs.

61.79

Break Even Point in Quantity

=

M.Ton
Average BEP

% of Installed capacity
Average

1024.62

935.94

857.92
865.07

786.40

720.46

0.26

0.25

0.23
0.23

0.21

0.19

First Half Year

YEAR

1
2
3
4
5
TOTAL

OPENING
BALANCE

PAYMENT

10.00
8.89
6.67
4.44
2.22

1.11
1.11
1.11
1.11
4.44

Second Half Year

CLOSING
BALANCE

INTEREST

10.00
7.78
5.56
3.33
1.11

0.70
0.54
0.39
0.23
0.08
1.94

OPENING
BALANCE

PAYMENT

10.00
7.78
5.56
3.33
1.11

1.11
1.11
1.11
1.11
1.11
5.56

Consolidated Payout (Rs. In '000)

CLOSING
BALANCE

INTEREST

TOTAL

TOTAL

TOTAL

8.89
6.67
4.44
2.22
-

0.62
0.47
0.31
0.16
-

1.32
1.01
0.70
0.39
0.08

1.11
2.22
2.22
2.22
2.22

2.43
3.23
2.92
2.61
2.30

1.56

3.50

10.00

13.50

INTEREST PRINCIPAL REPAYMENT