Kandukuri Industries Private Limited

Jammala Palem, Kavali - 524201

Weaving Division
Project at a glance

1 Name of the company : Kandukuri Industries Private Limited

2 Registered office Address : #66, Vinod villa, Room # 308,
Kalbadevi Road, Mumbai - 400002.

3 Factory address : Survey # 326, Kandukuri Estate,

Jammalapalem, Kavali,
Nellore district, Andhra pradesh - 524201

4 Status of the company : Private Limited

5 Nature of the Project : Setting up of imported Power looms for

manufacturing Fabric

6 Project Cost : 1181.47 Lac

7 Means of finance
1) Term Loan from S.B.I. Kavali : 941.17 Lac
2) Promotors contribution : 240.30 Lac

8 Working capital required

1) Cash credit from S.B.I. Kavali : 394.59 Lac
2) Promotors contribution : 131.53 Lac

9 No.of Power Looms : 30 imported power looms

10 Mode of repayment : Quarterly instalments over a period of 6 years

after 6 months maratorium period

11 Rate of interest

Term Loan : 13.00%

Cash Credit : 14.00%

12 Manpower availability : Abundant, Separate List enclosed

13 Power availability : HT line will be applied from Electricity Dept.

14 Water availability : Abundant

16 Board of directors : Separate List Enclosed

17 Lease agreement : Not applicable - Own premises

19 Primary security : Proposed machinery and other fixed assets

20 Collateral Security : With in the existing colateral securities offered to

the bank.
 Kandukuri Industries Private Limited
Jammala palem, Kavali - 524201

Capital Cost of the Project

Particulars Amount
Building 8,006,750
Plant & Machinery 104,760,384
Electrical Instalation 3,579,770
Electricity deposit 300,000
Goods vehicle (Lorry) 1,500,000
Total Cost 118,146,904

Means of Finance

Particulars Amount
Promoters Contribution 24,029,718
Bank Finance 94,117,186
Total Cost 118,146,904

Apportionment of means of finance

Promoters
Contribution Bank Finance Total
Particulars
Building 2,001,688 6,005,063 8,006,750
Plant & Machinery 20,952,077 83,808,308 104,760,384
Electrical Instalation 715,954 2,863,816 3,579,770
Electricity deposit 60,000 240,000 300,000
Goods vehicle (Lorry) 300,000 1,200,000 1,500,000
Total Cost 24,029,718 94,117,186 118,146,904
 Kandukuri Industries Private Limited
Jammala palem, Kavali - 524201

Details to Machinery for Weaving Division

Name of the
S.No Particulars Amount Amount Total
Supplier
1 One supply Plant each having 187000CMH Air
volume capacity
One Exhaust Plant each having 170000 CMH Air
volume capacity
Filter
Damper
Air washer Equipment
Centrifugal Pumps Best Air
Engineering (India)
Supply water Piping Private Limited
Return Water Piping
Axial Flow Fan
Electric Motor
Diffusers 1,250,000
Service charges 10,000
Erection charges & Frieght @ 2% 25,200
Packing charges 5% Extra 64,260 1,349,460

2 GA 90 KW (125HP) AIR Compressor

Working Pressure 7.5 BAR, CFM 572 - 4 No.s 5,300,000
Air dryer GEM make 1500 CFM - 2 No.s 1,056,000
Air receiver 5M3 - 1 No 312,000
Air Power
Oil Removable Filters GEM make 2000 CFM - 3 No.s Solutions 246,000
(+) Excise Duty @ 10.3% 712,142
(+) CST @2% 152,523
(+) Packing & Forwarding 155,573
(+) Transit Insurance @ .75% 59,507 7,993,745
3

Weavers beam with 1000MM dia alluminium alloy

die - cast flange, 176 MM DIA, MS barel with 136T
SGI GEAR & Suitable adaptors for 190CMS loom 1,647,000
Darshan
HALF WARP beam with DIE -cast one movable & Engineering
One fix flange with 150mm dia m.d barrel with enterprises
150T SGI Gear & Suitable Plates For 340 CMS. Twin
Loom 2,358,000
Total 4,005,000
Packing & Forwarding 160,200
2% CST 83,304 4,248,504
4 Toyota Air Jet Loom
MODEL:JA4S-210TP-EF-T710 0.539
Reed Space 210 cm, 4-colour, NOTE: 1 YEN = 0.539 YEN as on 23rd Sep,2010 as per RBI rate
Staubli positive tappet cam motion (type 1661)
with 8-shafts - 12 sets - 55200000 JPY 29,752,800
MODEL:JA2S-210CM-EF-T710
Reed space 210cm, 2-colour
Toyota Crank Motion - 6sets - 20700000 JPY 11,157,300
Model: JA2S - 340 TP- EF - t710
Reed Space 340 cm, 2 - colour, Temac Marketing
India Private
Staubli positive tappet cam motion ( type 1760) Limited
with 10 - shafts - 4 sets - 23200000 JPY 12,504,800
Model: JA2S - 340TP-EF-T710
Reed Space 340cm, 4 - colour at will instead of 2 -
colour ( Cam M/c)
Staubli positive tappet cam motion (type 1760)
with 10 - Shafts - 8 sets - 49200000 26,518,800
Conversion part for filament Weaving - 4 lots -
760000 409,640
Frieght & Forwarding charges 2% Extra 1,606,867 81,950,207
5
Compressor Pipe Line 100 % Power saving project
(pneumatic) S.I.Ismail 613,901
Consultancy
Labour quotation Service 98,000 711,901

6
Vertex three phase Microcontroller based True
RMS Servo Stabilizes, 300 KVA Input Range: 340 V -
480V L-L Output: 415V +/_ 1% L-L Oil - Cooled
Model, with 630A On load Change over Bypass Universal
Switch. Electronics 266,400
Transformer Oil 630 Ltrs @ Rs. 750 per ltr 47,250

326,321
 6

Universal
Electronics

Sales Tax @ 2% on Form C 6,273

Transit insurance & Frieght @ 2% 6,398 326,321
7 Drop Pins "D" Close Type Electrical Type
Size 165X11X0.2mm - 500000 pcs
Material : Nickel Plated @ 1050 per 1000 pins 525,000
Material: Stainless Steel @Rs.1600 per 1000 800,000
Size 165X11X0.3mm Mayur Reeds And
Healds Pvt. Ltd
Material:Nickel Plated @1100 per 1000pins 110,000
Material stainless steel @ 1800 per 1000pins 180,000
CST @ 2% 32,300
Packing charges @ 2% 32,946 1,680,246

8 Warping machine
SERVOMATIC - VM 108 4,650,000
SWIVEL FRAME TYPE CENTRTALLY ADJUSTABLE
TYPE CONE CREEL MODEL VM -202 - 840 ENDS 1,062,000
Over head travelling cleaner 190,000

6,500,000
Total value of Machinery 104,760,384

Details of Electrical Installation

1 Electrical Installation
Development charges to be paid to APSPDCL 300,000
Consupmption deposit to be paid to APSPDCL for
200 KVA for 3 shift operation 300,000
11KV/433V Transformer substation work 1,141,900
Engineering
MV control panels, cables etc. for the weaving mill enterprises
expansion 1,907,360
Erection, testing and commissioning charges for
the Tr. Substation Etc. 87,450
Erection, testing and commissioning charges for
the MV Panels etc. 143,060 3,879,770
Total Value of Electrical Installation 3,879,770

Details of Building
1 Weaving departement - Sheet Area 8161 Sq.ft @ 600.00 Rs per Sq.ft 4,896,600
Weaving departement - Exhaust & Supply plant
Area 2970 Sq.ft @ 1000 Rs. Per Sq.ft 2,970,000
Power & Generation room 2049 Sq.ft @ 750 Rs. Per Sq.ft 1,536,750
Warping Machine Building 3,500,000
Total value of Building 8,006,750
 Kandukuri Industries Private Limited
Jammala palem, Kavali - 524201

LOOM Details:
No.of looms : 18 No.of looms : 12
Make : Toyota Make : Toyota
Average Speed : 600 RPM Average Speed : 400 RPM
Width : 210 cms Width : 340 cms
Production details:
Pick : 76 Pick : 76
Production capacity per day per loom in mtrs : 289 Production capacity per day per loom in mtrs : 385
Production capacity per day per 18 looms in mtrs : 5,198 Production capacity per day per 18 looms in mtrs : 4,620
Efficiency Used : 80% Efficiency Used : 75%
Production per day in mtrs : 4,159 Production per day in mtrs : 3,466
Production per month in mtrs : 124,770 Production per month in mtrs : 103,980
Total production per month : 228,750
Formula:

RPM 600 X 2.54X60X24 = 289 mtrs/ day /loom RPM 400 X 2.54X60X24 X 2(wider width) =385mtrs/day/loom
PICK 76 100 cms. PICK 76 100 cms.

40 X 40 Cotton Dyed: Rs.

40 Yarn per Kg. : 220
Yarn Dying : 100
Sizing & Transportation : 80
400 Rs. X 18. kg Quality for 100 mtrs.

Yarn Cost : 72
Weaving charges : 20
Finishing charges : 10
Margin : 5
107 Rs.

Per month production : 228,750 Mtrs per month

Production per annum : 2,745,000 Mtrs per Annum
Value of yearly production : 307,440,000 Rs per Annum

Working capital requirement

Rs. In Lacs
Yarn stock ( 228750 Mtrs X Rs.72) : 30 days 164.70
Grey position (228750 Mtrs X Rs.102) : 15 days 116.66
Finishing (228750 Mtrs X Rs.107) : 30 days 244.76
526.13

Requisition for working capital loan from Bank : 394.59 Lacs

Promoters Contribution : 131.53 Lacs
Rate of interest @ 14 %
 Kandukuri Industries Private Limited
Jammala palem, Kavali - 524201
Projected profitability Statements
(Rs. In Lacs.)
Particulars 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
A.Income : Total productio 228750
From Weaving 549.00 554.49 560.03 565.64 571.29 577.00 Assumed as 1% increase in every year
Marketing margin 137.25 138.62 140.01 141.41 142.82 144.25 Assumed as 1% increase in every year
TOTAL RECEIPTS (A) 686.25 693.11 700.04 707.04 714.11 721.26
B.Expenditure :
Salaries 39.56 43.52 47.87 52.66 57.93 63.72 Assumed as 10% increase in every year
Power charges 96.00 98.88 101.85 104.90 108.05 111.29 Assumed as 3% increase in every year
Machinery maintenance 24.00 24.00 24.00 36.00 54.00 81.00 First three years 2 Lac, Later on 50% increase in every year.
Miscellaneous expenses 6.00 6.60 7.26 7.99 8.78 9.66 Assumed as 10% increase in every year
Insurance 12.00 12.12 12.24 12.36 12.49 12.61 Assumed as 1% increase in every year
Depreciation 392.45 147.25 125.52 107.02 91.26 77.83 Workings attached
Interest on term loan 122.35 110.12 97.88 79.53 55.06 30.59 Workings attached
Interest on working capital 55.24 55.24 55.24 55.24 55.24 55.24 Workings attached

TOTAL EXPENDITURE (B) 747.61 497.73 471.87 455.70 442.81 441.95

Profit Before tax (PBT) (A-B) (61.36) 195.38 228.17 251.34 271.31 279.31
Income tax there on - 65.24 76.19 83.92 90.59 93.26
Profit After Tax (PAT) (61.36) 130.14 151.99 167.42 180.72 186.05
(+) Depreciation 392.45 147.25 125.52 107.02 91.26 77.83
NET CASH ACCRUALS 331.09 277.39 277.51 274.44 271.98 263.88

Kandukuri Industries Private Limited

Jammala palem, Kavali - 524201
Projected Balance Sheets
(Rs. In Lacs.)
Particulars 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
LIABILITIES :
1 Share Capital 371.83 371.83 371.83 371.83 371.83 371.83
2 RESERVES & SURPLUS (61.36) 68.79 220.77 388.19 568.91 754.95
3 SECURED LOANS
a) Term loan from SBI, Kavali. 847.05 752.94 611.76 423.53 235.29 -
b) Working capital from SBI Kavali 394.59 394.59 394.59 394.59 394.59 394.59
4 CURRENT LIABILITIES
a) Sundry Creditors 250.00 260.00 270.00 280.00 290.00 300.00
b) Others 0.20 0.22 0.24 0.26 0.28 0.30
5 Provisions 4.00 6.00 8.00 10.00 12.00 14.00
1,806.32 1,854.37 1,877.20 1,868.40 1,872.90 1,835.68

ASSETS:
1 Gross Block 1,178.47 1,005.70 858.45 732.93 625.90 534.65
(-) Depreciation (392.45) (147.25) (125.52) (107.02) (91.26) (77.83)
Net Block 786.02 858.45 732.93 625.90 534.65 456.81
2 Deposits 3.00 3.00 3.00 3.00 3.00 3.00
3 Current Assets.
a) Closing Stock
I.Finished Goods 340.00 340.00 370.00 400.00 430.00 440.00
II. Stocks in Process 120.00 120.00 130.00 140.00 160.00 170.00
b) Sundry Debtors 500.00 450.00 510.00 550.00 560.00 560.00
c) Advances 6.00 8.00 10.00 12.00 14.00 16.00
d) Cash & Bank Balances 51.30 74.92 121.27 137.50 171.26 189.87
1,806.32 1,854.37 1,877.20 1,868.40 1,872.90 1,835.68

Kandukuri Industries Private Limited

Jammala palem, Kavali - 524201
Projected DSCR
(Rs. In Lacs.)
Particulars 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Net Profit after Depreciation and Income Tax (61.36) 130.14 151.99 167.42 180.72 186.05
Depreciation 786.02 858.45 732.93 625.90 534.65 456.81
Interest on term loan 122.35 110.12 97.88 79.53 55.06 30.59
TOTAL (A) : 847.02 1,098.71 982.79 872.85 770.42 673.45

Repayment of Term Loan 94.12 94.12 141.18 188.23 188.23 235.29

Interest on term Loan 122.35 110.12 97.88 79.53 55.06 30.59
TOTAL (B) : 216.47 204.23 239.06 267.76 243.29 265.88

DSCR A/B 3.91 5.38 4.11 3.26 3.17 2.53

Average DSCR 4.47

Kandukuri Industries Private Limited

Jammala palem, Kavali - 524201
Projected Debt Equity Ratio
(Rs. In Lacs.)
Particulars 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
DEBT:
Working capital loan from SBI, Kavali 394.59 394.59 394.59 394.59 394.59 394.59
Term Loan from SBI, Kavali 847.05 752.94 611.76 423.53 235.29 -
Total (A): 1,241.65 1,147.53 1,006.36 818.12 629.89 394.59

EQUITY:
Promoters Contribution 433.00 389.70 350.73 315.66 284.09 255.68
Reserves (61.36) 68.79 220.77 388.19 568.91 754.95
Total (B): 371.64 458.49 571.50 703.85 853.00 1,010.64

Ratio (A/B) : 3.34 2.50 1.76 1.16 0.74 0.39

Kandukuri Industries Private Limited

Jammala palem, Kavali - 524201
Projected Current Ratio
(Rs. In Lacs.)
Particulars 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
CURRENT ASSETS :
Closing Stock 460.00 460.00 500.00 540.00 590.00 610.00
Sundry Debtors 500.00 450.00 510.00 550.00 560.00 560.00
Advances 6.00 8.00 10.00 12.00 14.00 16.00
Cash & Bank Balances 51.30 74.92 121.27 137.50 171.26 189.87
TOTAL (A) 1,017.30 992.92 1,141.27 1,239.50 1,335.26 1,375.87
CURRENT LIABILITIES :
Working capital loan from SBI Kavali 394.59 394.59 394.59 394.59 394.59 394.59
Sundry Creditors 250.00 260.00 270.00 280.00 290.00 300.00
Others 0.20 0.22 0.24 0.26 0.28 0.30
Provisions 4.00 6.00 8.00 10.00 12.00 14.00
TOTAL (B) 648.79 660.81 672.83 684.85 696.87 708.89

Current Ratio 1.57 1.50 1.70 1.81 1.92 1.94

 1 Term Loan Schedule - option1 Depreciation Schedule
Jammala palem, Kavali - 524201 Amount 941.17 Rs. In Lacs
Manpower requirement and Cost Interest % 13.00% Rs. In Lacs Particulars 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
No. of persons Interest Repayment Repayment
S.No Particulars Salary per month Gross salary Year O/s balance 1. Land & Building
required amount Amount Schedule
1 Getters 2 10,000 20,000 1 122.35 94.12 10% 847.05 Gross block 80.07 72.06 64.85 58.37 52.53 47.28
2 Weavers 16 8,000 128,000 2 110.12 94.12 10% 752.94 Rate of Dep. 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
3 Helpers 4 5,000 20,000 3 97.88 141.18 15% 611.76 Depreciation 8.01 7.21 6.49 5.84 5.25 4.73
4 Warping Operators 2 10,000 20,000 4 79.53 188.23 20% 423.53 Net Block 72.06 64.85 58.37 52.53 47.28 42.55
5 Helpers 3 6,000 18,000 5 55.06 188.23 20% 235.29
6 Godown helpers 4 5,000 20,000 6 30.59 235.29 25% - 2. Plant & Machinery
7 Grey checkers 8 8,000 64,000 Gross block 1,047.60 890.46 756.89 643.36 546.86 464.83
8 Folding & Packers 6 4,000 24,000 Working capital Rs.in lacs Rate of Dep. 15.00% 15.00% 15.00% 15.00% 15.00% 15.00%
9 Miscellaneous cost 5% 15,700 Amount 394.59 Depreciation 157.14 133.57 113.53 96.50 82.03 69.72
Additional Dep @ 20% 209.52 - - - - -
Gross salary cost per month 329,700 Interest Rate 14% Net Block 890.46 756.89 643.36 546.86 464.83 395.10
Interest per annum 55.243125
3. Electrical Installation
Gross block 35.80 30.43 25.86 21.98 18.69 15.88
List of Board of Directors Rate of Dep. 15.00% 15.00% 15.00% 15.00% 15.00% 15.00%
S.No Name Designation Depreciation 5.37 4.56 3.88 3.30 2.80 2.38
Additional Dep @ 20% 7.16 - - - - -
1 K.V.Sathyanarayana Chairman Net Block 30.43 25.86 21.98 18.69 15.88 13.50
2 K.Pushpavathi Executive Director
3 I.V.Vijaya Bhaskara Rao Director 4. Goods Vehicle
4 I.V.Subhashini Director Gross block 15.00 12.75 10.84 9.21 7.83 6.66
5 M.Ramaswamy Director Rate of Dep. 15.00% 15.00% 15.00% 15.00% 15.00% 15.00%
6 M.Laxmi Rekha Director Depreciation 2.25 1.91 1.63 1.38 1.17 1.00
Additional Dep @ 20% 3.00 - - - - -
Net Block 12.75 10.84 9.21 7.83 6.66 5.66

Total Gross Block 1,178.47 1,005.70 858.45 732.93 625.90 534.65

Total Depreciation 392.45 147.25 125.52 107.02 91.26 77.83
Total Net Block 786.02 858.45 732.93 625.90 534.65 456.81