AVALON FINANCIAL ADVISERS.

1308-A , AMRAPALI PRINCESLY ESTATES , SECTOR-76, NOIDA-201301

A PROJECT REPORT ON PLASTIC DISPOSABLE CUTLERY

A MANUFACTURING UNIT OF A PRODN/CAPACITY OF 63000 KGS FOR DISPOSABLE CUTLERY.

SARISH VARMA
DIRECTOR
9999129320
 AVALON FINANCIAL ADVISERS
PROPOSAL INDEX

A PROJECT REPORT ON
PLASTIC DISPOSABLE CUTLERY UNIT

S/No SUBJECT LOCATION

1 PROJECT GLOSSARY/INDEX ANNEXURE 1

2 PROJECT METHODOLOGY-1 ANNEXURE 2

PROJECT METHODOLOGY-2
PROJECT METHODOLOGY-3

3 LAND & BUILDING ANNEXURE 3

4 PLANT & MACHINERY ANNEXURE 4

5 PRELIMINARY & PRE-OPERATIVE EXPENSES ANNEXURE 5

6 UTILITY REQUIREMENTS ANNEXURE 6

7 MANPOWER REQUIREMENTS ANNEXURE 7

8 CONSUMABLE STORES ANNEXURE 8

9 REPAIR & MAINTENANCE ANNEXURE 9

10 PROJECT REVENUE DETAILS ANNEXURE 10

11 PROJECT COST & SOURCE OF FUNDS ANNEXURE 11

12 BANK LOAN REPAYMENT SCHEDULE ANNEXURE 12

13 DEPRECIATION SCHEDULE ANNEXURE 13

14 PROFITABILITY ESTIMATES ANNEXURE 14

15 PROJECTED BALANCE SHEET ANNEXURE 15

16 CASH FLOW STATEMENT ANNEXURE 16

17 BREAK-EVEN ANALYSIS ANNEXURE 17

18 DSCR & IRR ANNEXURE 18

19 RATIO ANALYSIS ANNEXURE 19

 A PROJECT REPORT ON PLASTICS DISPOSABLE CUTLERY UNIT
PLANT & MACHINERY

S/No MACHINERY DETAILS NO OF UNITS

1 Automatic Thermocol Plate making machine( Dual Die ) 2

# Single/3-Phase operation
# 3600 Pieces/per Hour.
# 4-14 inch ( Plate size )+ 1-3 mm Thickness
# 1/3 HP motor

2 Automatic Thermocol Dona (dual die ) making machine 2

3 Automatic Glass making machine ( Dual Die ) 2
Break motor 40 rpm 1
Body MS Angle Size 40 100
Die Cooling System 1
Pressure Tank 50Litre 1
Cooling Plate 1
Hydraulic Cutting Machine 1

2 Office Assets

Inkjet Printer( 3 -in -1 ) 1

Inktank Printer 2
Fridge(165 liters ) 1
Induction Cooker 1
Microwave 1
Water Filter 1
Fans 10
Cutlery 1 set
Router 1

GRAND TOTAL

Notes to Account:

1 All Machines have been procured from established manufacturers from NCR region.
2 The Main Thermocol Plate making machine is a 1/3 Phase 3600 pieces/Hr capacity machine weighing 1500 k
3 The Automatic Dona making machine has 2 Dies & has a capacity of 3000 pieces / Hr.
4 The Automatic Glass making machine has 2 Dies & has a capacity of 3000 pieces / Hr.
5 All the above 3 x Key machines carry a warranty of 2 yrs.
SABLE CUTLERY UNIT

YEARLY PROJECTIONS
PRICE PER UNIT TOTAL AMOUNT REMARKS

500000 500000

120000 120000
120000 120000
10000 10000
15000 15000
15000 15000
10000 10000
15000 15000
25000 25000

830000

5000 5000
9000 18000
10000 10000
17000 17000
10000 10000
12000 12000
3000 30000
5000 5000
3000 3000

110000
940000

ufacturers from NCR region.

pieces/Hr capacity machine weighing 1500 kgs.
of 3000 pieces / Hr.
of 3000 pieces / Hr.
 A PROJECT REPORT ON DISPOSABLE PLASTIC CUTLERY UNIT

LAND & BUILDING EXPENSE

S/No PARAMETER DIMENSION

1 Factory/Manufacturing shed 500

2 RM - Stores/Godown/Warehouse 200

3 Dir-Office/ 400

4 Guard/Security room 100

5 Genset Room 150

6 Power Substation Unit 150

7 Workers Recreation Room 250

8 FG-Stores/Godown/warehouse 200

TOTAL: 1950

NOTES TO ACCOUNT:

1 The Unit will be spread over 3000 sq ft in Kasna Industrial Estate-Greater NOIDA. It will be a single storeyed build
75 x 75 sq ft & has a barebone structure of ( Corporate Office/Shopfloor/Stores & Reception.)

2 The Unit will be taken over on a Lease/Rental basis for atleast 2 years. An Alternate plan to construct the self-ow
incur an Extra Expense of Rs 20.0 lacs. The Lease option will suit us for an Investment of Rs 4.0-5.0 lacs.
POSABLE PLASTIC CUTLERY UNIT

COST ( Rs )

)
)
)
)
)
)
)
)
400000.00
)
)
)
)
)
)

400000.00
( Total Lease Rental for a 3000 sq Ft Unit ) pa

Industrial Estate-Greater NOIDA. It will be a single storeyed building measuring

rporate Office/Shopfloor/Stores & Reception.)

asis for atleast 2 years. An Alternate plan to construct the self-owned Head-Office will
e option will suit us for an Investment of Rs 4.0-5.0 lacs.
S/No

5
6
AVALON FINANCIAL ADVISERS

PROJECT METHODOLOGY - 1

A PROJECT REPORT ON A PLASTICS DISPOSABLE UNIT...

PROJECT METHODOLOGY

RAW MATERIAL:

The main Raw Material is the White EPC-Thermocol (Sheets of 4mm-10mm) in thickness.
It is used for the Heat -Treatment & Moulding of the Thermocol ( Thalis/Donas & Plates).
The PP Rolls ( White- 4mm - 10 mm )are used for the Moulding of the Plastic Cups/Glasses.
Both the White Thermocol-PP sheets & rolls are easily available in NCR markets & and will be sourced via the
Tradeindia/Indiamart portals.

MACHINERY:

The Thermo-Moulding machines are used for the production of the Thermocol ( Thalis/Cups/Glasses).
These are available in both ..Semi-Automatic & Automatic modes.
The Machines are of the 3-5 HP Motor driven type available for production of Cutlery of 4-10 mm thickness.

The Heat-treatment machines are used for the production of Plain Plastic ( Plates /Donas).
These too are available in both the -Semi-Autmatic/Automatic modes powered by Electric motor of 3-5 HP
capacity.
Both these machines are easily available via NCR based manufacturers listed in the Trade portals.

PRODUCTION CAPACITY:

The Thermo-Moulding machines will operate on a Single Shift basis of 8 hours daily processing an RM outlay of
300 kgs of Thermocol PP Sheet/rolls.

The Capacity Ulilisation will be 70% , 80 % & 90 % in the 1st three years of operation.
The Production capacity will be 63,000 kgs , 72,000 kgs & 81,000 kgs respectively in these first 3 years of
operation.

ENVIRONMENTAL MEASURES:

The production process will incur a Wastage/Scrap material of 10% of the RM used per month.
This Scrap Thermocol strips will be re-sold to the RM Suppliers for recycling back to its original form.

POWER REQUIREMENTS:

The total Power outlay required for the production unit will be about 30KW monthly.
This Power arrangement will be routed via the nearest UPPVNL Subs-station along with the essential metering
equipment.
A Diesel Genset ( 3.0 KVA ) capacity will be installed as an Auxiliary Power source.

WATER REQUIREMENTS:

The total Water outlay is estimated to be about 1000 litres /day.

This Water Supply arrangement will arranged via Noida Authority & UP Jal Board.
REMARKS

PVVNL
Sudhir gensets

Noida Authority
UP Jal Board
 7

.
AVALON FINANCIAL ADVISERS

PROJECT METHODOLOGY - 2

A PROJECT REPORT ON PLASTICS DISPOSABLE CUTLERY UNIT

ERP PROCESS:

Stage 1:
The Sales Schedule is prepared on the basis of the 100 x Approved Sales Order ( SO) recieved on a FIFO basis.

Stage 2:
The Sales schedule is then checked with the available FG ready for shipment in the FG stores.
It is found that 50% of the Sales Schedule can be met with the existing FG stocks in the FG stores.

Stage 3:
This available FG in FG Stores is then packed/inspected & made ready for shipment along with the the Packing
Slip , Sales Invoices & Delivery Challans.

Stage 4:
The ERP process checks the availability of the RM in the RM Stores for the production of the balance 50% of the
sales schedule for the month.
It is found that only 25% of the Sales Schedule can be met by the available RM in the RM stores.
This is regularly replenished by keeping a BUFFER Stock level for 15 days.
The ERP issues the RM to the Production shop-floor to make the 25 % of the Sales Schedule for the month.

Stage 5:
The Purchase team then immediately places Order for RM on designated Suppliers in the NCR region for
supply of the Thermocol-PP Sheets & rolls.
The RM is delivered within 3-4 days after release of Firm PO+ Advance payments as per Credit Policy of the Unit.
The RM is then quality checked & then on approval is accepted & transfered to the RM Stores. The Inventory levels
are automatically updated with the receipt of the new RM.

Stage 6:
The Production Incharge makes the Weekly Production Schedule for producing the balance 25% of the pending
Sales Schedule
He makes the Daily Production Work order keeping in mind the available Labor & Machines in hand.
The RM issued from the RM stores is distributed to the Shopfloor as per the designated Production Work order
of the day.

Stage 7:
The Production Incharge then starts the daily Production schedule with his team of Skilled & semi-skilled labor.
300 Kgs of RM is utilised to produce the Planned ( Thalis/Donas/Plates/Glasses & Cups).
10% of the RM is wasted as Scrap on the Shopfloor, which is then collected EOD & sent to the Scrap-Stores.
Stage 8:
The daily production items are then sent to the FG Stores after Inspection at the Shopfloor.
The FG Stores is then updated with the arrival of the newly cleared Thermocol products on a daily basis.
The balance 25% of the Sales Schedule is met with this new induction of the FG from the Shopfloor.

Stage 9:
The Accounts teams then prepare the Account-Recievables & the General Ledger statements on a daily basis.
Then they formulate the Daily/Weekly & monthly MIS report regarding the Unit Profitability & its AR/Cashflow status.
 8

10
AVALON FINANCIAL ADVISERS

PROJECT METHODOLOGY-3

A PROJECT REPORT ON PLASTICS DISPOSABLE CUTLERY UNIT

SALES & MARKETING PLAN:

The main consumers of these Thermocol-Cutlery items are the Food Outlets/Restaurants selling their
food preparations in an OTC ( On-the-counter) basis.
These are prevalent all over the NCR region and are expected to about over 1.0 lacs in number.
The Company Sales teams are organised into...Telesales Unit & the Field sales Unit.
The Field sales team will contact these OTC Food outlets in NCR personally & negotiate Rate-Contracts
with them as the assigned Sales targets.
The initial Pilot Sales Orders can be offered discounts upto 15% & a Credit-period of 30 days.
About 25000 items of varying Product-type are produced each month which are available for Direct
sale to the Food Outlets in the NCR region.

FINANCIAL PLAN:

The Thermocol-PP Cutlery items will carry a Net profit margin of about 10-15%.
The Credit period offered will be as market needs & can be upto 1-2 month.
The Cutlery Items on a Multi-year rate contract will carry a higher discount to the tune of about 20-25%.

MANAGEMENT PLAN:

The Management setup the Manufacturing Unit of 63000 kgs capacity in a Industrial Plot of about 5000 sq ft.
This will be located in the industrial zones of Dadri/Kasna tehsils.

The Total Project cost will about Rs 25.0 lacs ; it will be funded by 20% of Promoter contribution & the
balance 80% will be funded via the MSME/SIDBI -New Entreprenuer Scheme. Working capital limits
of about Rs 5.0 lacs will be obtained by SBI/ICICI banks.

The detailed Project Report will be submitted to the Ministry of SME + SIDBI by ...( 15/10/2019).
The Project Funding will get released by Ministry of SME+ SIDBI/NSIC within 1 month of submission
of the Project viability Report to them....( 15/11/2019 ).

Necessary Land Purchase Approvals + ECC Clearances will be obtained from the NOIDA Authority.
The Industrial Plot of 5000 sq ft ( min ) will be purchased outright , duly funded by the MSME Loan
of the Ministry/SIDBI/NSIC by ....( 5/12/2019).

The Company Management have identified the Civil Works contractors for the commisioning of the
Manufacturing Unit + the Office Complex/Stores Units in Dadri/Kasna tehsils. The Factory+ Office Complex
design will be submitted by the Civil Contractor by ....( 5/12/2019).

The Design/Construction Schedule will be approved by the Company management by...( 15/12/2019).
The Civil Works will commence immediately & the expected Commisioning dates is by...( 15/04/2020).
The relevant Power & waterworks arrangements will be worked out by ...(15/05/2020).
The Plant machinery will get installed/tested & deemed as commisioned by ..( 15/06/2020).
The Trial-run will commence by ...( 01/07/2020) leading to a 100% Commisioned status by ..(15/7/2020).
The Company will start Commercial production by ...(15/8/2020) after 2 x months of Sales process.
 A PROJECT REPORT ON PLASTIC DISPOSABLE CUTLERY UNIT.
RATIO ANALYSIS

S/No PARAMETERS YEARLY PROJECTIONS

Yr 1 Yr2 Yr3
2019 2020 2021

1 NET PROFIT MARGIN

2 GROSS PROFIT MARGIN

3 DEBT-EQUITY RATIO

4 DEBT SERVICE COVERAGE RATIO

5 CURRENT RATIO

6 QUICK RATIO
RY UNIT.

ARLY PROJECTIONS
Yr4 Yr5
2022 2023
 A PROJECT ON PLASTICS DISPOSABLE CUTLERY UNIT
MEANS OF FINANCE & SOURCE OF FUNDS

S/No PARAMETER
AMOUNT

A C

1 RAW MATERIAL 1450000

2 LAND & BUILDING 410000

3 REVENUE COSTS 1000000

4 PLANT & MACHINERY 940000

SUB-TOTAL: 3800000

B MEANS OF FINANCE:

1 TERM LOAN FACILITY 2000000

2 WORKING CAPITAL 500000

3 PROMOTER & FAMILY 650000

4 QUASI-EQUITY 650000

SUB-TOTAL: 3800000

NOTES TO ACCOUNTS:

The Plastics Cutlery unit will be Co-financed under the SIDBI-MSME- facility for New Entreprenurial Units.
The Plant will be based in Kasna Industrial Area-GREATER NOIDA (UP) over a 3000 sq ft plot.
The Working Capital to the tune of Rs 5.0 lacs will be arranged by PNB-Sector 18 ( Noida )
The Term Loan for Rs 20.0 lacs will arranged by SIDBI( Project Finance Unit ) @ 13% payable in 7 yrs.
The Equity is arranged by Core promoter & family via Direct capital Infusion.
The Quasi-Equity will be contributed by SIDBI under their VC/MSME Scheme.
A Moratarium of 1 year is given under the Term Loan repayment schedule.
 CUTLERY UNIT

REMARKS

EXCLUSIVE OF OPERATING COSTS

LEASE/RENTAL COST

OPERATING EXPENSES

FIXED ASSETS

TL @ 13% IN 7 YEARS + 1ST YEAR MORATARIUM

WC @ 15% IN 5 YEARS

BY WAY OF EQUITY/CAPITAL

SIDBI

SME- facility for New Entreprenurial Units.

A (UP) over a 3000 sq ft plot.
by PNB-Sector 18 ( Noida )
inance Unit ) @ 13% payable in 7 yrs.
pital Infusion.
MSME Scheme.
nt schedule.
 A PROJECT REPORT FOR PLASTICS DISPOSABLE UNIT
PRE-OPERATIVE / PRELIMINARY EXPENSES

S/No PARAMETERS AMOUNT

A Pvt Ltd Company ( Conversion ) from 15000

a Proprietoryship Firm.

Project & Land Survey report 2000

Market Survey report 5000

Design & Layout of Plant Unit 10000

MSME Registration 5000

NSIC Registration 5000

GST/TAN/PAN registration 10000

Electricity Meter Connection 25000

Pollution Clearance CertIficate 5000

Factory Registration 10000

WC Processing Charges 5000

Term Loan Processing charges 25000

TOTAL PRE-OPERATIVE EXPENSES 122000

ISPOSABLE UNIT

REMARKS

Includes the Legal / ROC + Notary Fees.

Real Estate Agent

Via Draftman ( On Contract )

Ongoing

Ongoing

Ongoing
 A PROJECT REPORT ON PLASTIC DISPOSABLE UNIT
RAW MATERIAL

S/NO PARAMETER QTY AMOUNT

Thermocol Plastic Roll @ 25 kg/day 125 975000

Packaging Material @ 2 Kg/day 150 93600

Grease & Lubricants 5000 50000

Hardware Items 5000 50000

Spare parts 5000 50000

TOTAL : 1218600

CAPACITY UTILISATION:

Yr 1 70% 853020
Tr 2 80% 974880
Yr 3 90% 1096740
Yr 4 90% 1096740
Yr 5 90% 1096740

NOTES TO ACCOUNT:

1 The Key RM component is the Thermocol/Roll costing Rs 150/kg.

2 The Corrugated Packaging material cost Rs 2.0 /kg.

3 Total RM consumption is about Rs 25 kgs /day.

REMARKS

23600 kgs / pa is the RM for Thalis

 A PROJECT REPORT ON PLASTIC DISPOSABLE CUTLERY UNIT
UTILITY COSTS

S/No PARAMETER MONTHLY AMOUNT

(Rs )

Total Connected Load 10KVA 10KVA

Total Power Consumption/pm 2704 32448

Electric POWER Charge 10 324480

Capacity Utilisation

Yr 1 : 70% 70% 227136

Yr 2 : 80% 80% 259584
Yr 3 : 90% 90% 292032
Yr 4 : 90% 90% 292032
Yr 5 : 90% 90% 292032

NOTES TO ACCOUNT:

1 Minimum Acceptable Power Connection 10 KVA

( Industrial Grade )

2 Industrial Power Cost @ Rs 10.0 per Unit

LERY UNIT

REMARKS

Avg Power Connection ( Industrial Grade ) : 10 Kva.

Power Consumption /day of 13 KW / day.

Yearly Charge
 A PROJECT REPORT ON PLASTIC DISPOSABLE CUTLERY UNIT
SALES REVENUE-PROJECTED

Years
SN PARTICULARS
I II III
4 Mths 12 Mths 12 Mths
1 Salary to Staff 1,121,500 3,364,500 4,205,625

2 Travelling + Conveyance Expenses 30,000 90,000 1,03,500

3 Printing & Stationery 10,000 10,000 12,500

4 Telephone Expenses 15,000 55,200 63,480

5 Tea & Refreshments 6,000 20,700 23,805

6 Electricity Charges 81,121 324,482 2,24,864

7 Repairs & Maintenance of Assets 5,000 13,800 15,870

8 Raw Material Charges 213,255 853,020 974,880

9 Office HQ Rent 1,33,333 4,00,000 4,40,000

10 Advisory Fees 20,000 24,000 27,600

11 Pre-Op Expenses 122,000

12 Lease Charges 89,560 268,680 268,680

TOTAL : 20,15,615 63,97,344 72,67,063

NOTES TO ACCOUNT:

1 Yr 1 pertains to period from Nov-2019 to March 2020 ( 4 Months ). This is the Pre-Operative Phase.

2 The Expenses Increment is at 25% pa. The Advisory fees cover the Adhoc expenses required for Licensing at

3 The Plant Unit will be a 2-Floor structure spread over 4500 sq ft in Kasna Industrial area of Greater Noida.
The Land ( 4500 sq ft ) & the Building (3000 sq ft ) will be leased on a READY-TO-OPERATE basis.

4 The Plant -Production Unit will be based on a Gnd Flr Hall measuring ( 50x 50 ) feet, under the charge of the Pro
5 The 1st Floor Production Unit will house a ( RM+ FG + Dispatch ) stores unit under the charge of a Storekeeper.

6 The Corporate Office will seat the Director+ Commercial Unit+ Sales Unit respectively.
LERY UNIT

ANNEXURE-12

Years REMARKS
IV V
12 Mths 12 Mths
5,257,031 6,571,289

1,19,025 1,36,879

15,625 19,531

73,002 83,952

27,376 31,482

2,24,864 2,24,864

18,251 20,988

1,096,740 1,096,740

4,84,000 5,32,400

31,740 36,501

268,680 268,680

82,06,043 92,78,187

Operative Phase.

nses required for Licensing at varied stages.

l area of Greater Noida.

PERATE basis.

t, under the charge of the Production manager.

the charge of a Storekeeper.
 A PROJECT REPORT ON PLASTIC DISPOSABLES UNIT
SALARY EXPENSES

YEARLY PROJECTIONS
S/No PARAMETERS QTY Qualification

UNIT-1 ( Production Unit )

1 Production-Supervisor 1 B E-Production
2 Skilled Foremen 2 ITI-Diploma
3 Unskilled labor 5 Nil
4 Storekeeper 1 ITI-Diploma
5 Tool Room Mechanic 1I-Tooling Diploma

Sub Total ( Construction Unit ) 10

UNIT-2 ( Sales & Marketing Unit )

5 Sales Executive 2 BA
6 Tele & Online sales 1 BA

Sub Total ( Institute Unit ): 3

UNIT-3 ( Corporate Office )

7 Director 2 B Tech/MBA
8 Accounts Executive 1 B Com
9 Receptionist/Secretary 1 BA
10 Office Assistant 1 Class XII
11 Purchase Executive 1 B Com

Sub Total ( Corporate Office ) : 6

GRAND TOTAL( Company ): 19

LY PROJECTIONS
Type Date of joining Salary 2019 2020
3 months 12 months

Fulltime 1/12/2019 30000 3 90000 12

Fulltime 1/12/2019 17500 3 105000 12
Fulltime 1/12/2019 7500 3 112500 12
Fulltime 1/12/2019 13000 3 39000 12
Fulltime 1/12/2019 13000 3 39000 12

81000 15 385500

Fulltime 1/12/2019 17500 4 140000 12

Fulltime 1/11/2019 10000 4 40000 12

27500 38 27538

Fulltime 1/10/2019 50000 5 500000 12

Fulltime 1/11/2019 20000 4 80000 12
Fulltime 1/11/2019 12000 4 48000 12
Fulltime 1/11/2019 7000 4 28000 12
Fulltime 1/11/2019 20000 4 80000 12

109000 21 736000

1121500
AMOUNT

360000
630000
450000
156000
156000

1156500

420000
120000

540000

1200000
240000
144000
84000
240000

1908000

3364500
 A PROJECT REPORT ON PLASTICS DISPOSABLE CUTLERY
BALANCE-SHEET

YEARLY PROJECTIONS
S/No PARAMETERS 2019 2020 2021

YEARS
PARTICULARS
I II III
LIABILITIES & EQUITY:

Shareholder Funds:
Opening Balance - 1307571 6187538
Add: Additional Capital Introduced 1300000 1300000 1300000
Add: Net Profit during the year 15142 5503044 7565456
Less: Drawing -7571 -2751522 -3782728
Reserves & Surplus 7571 1923077 4469965
SUB TOTAL : 1307571 6187538 10583029

Current Liabilities
Working Capital + Term Loan 2500000 1900000 1300000
Sundry Creditors 100000 187500 215625
SUB TOTAL: 2600000 2087500 1515625

Total Rs. 6507571 10362538 13614279

ASSETS
1) Non-Current Assets:
Fixed Assets:
Opening Balance 0 773600 726060
Add : Additions during the Year 830000 100000 100000
Gross Block 830000 873600 826060
Less : Depreciation 56400 147540 125409
Net Block 773600 726060 700651
Non-Current Investments:
Other Non-Current assets:

INVESTMENTS & DEPOSITS:-

Investments 50000 100000
2) Current assets:
Sundry Debtors 918750 918750 918750
Inventory 459375 459375 459375
Raw material 1218600 459375 459375
Cash & Bank Balances 2470246 7067728 10124565
Advances & Other Receivables 545000 681250 851563
Preliminary Expenses not written off 122000 91500 68625
Total Rs. 6507571 10362538 13614279
RLY PROJECTIONS
2022 2023 REMARKS

YEARS
IV V

10583029 14346151
1300000 1300000
10509194 14302540
-5254597 -7151270
8046072 12946602
14346151 17002089

700000 -300000
247969 285164
947969 -14836

16242089 16972417

700651 764061
200000 200000
900651 964061
136590 146108
764061 817953

150000 200000
 918750 918750
459375 459375
459375 459375
12426075 12786398
1064453 1330566
51469 38602
16242089 16972417
 A PROJECT REPORT ON PLASTICS DISPOSABLE CUTLERY
CASHFLOW STATEMENT

S/No PARAMETERS 2019 2020

A) Opening Balance - 3,871,592

B) SOURCES OF FUNDS

Increase in Capital 1,300,000 -

Profit After Tax 15,192 3,852,131
Increase in Credit facility 2,500,000 -
Depreciation 56,400 147,540
TOTAL : 3,871,592 7,871,263

C) APPLICATION OF FUNDS

Increase in Fixed Assets 830,000 50,000

Increase in Working Capital 500,000 625,000
Increase in Investments - 50,000
Decrease in Term Loan - -
Withdrawals 2,038,000 3,675,000
Increase in Advances - 1,800,000

TOTAL : 3,368,000 6,200,000

Closing Balance
D) 503,592 5,542,855
(A+B-C)

NOTES TO ACCOUNTS:

1. Cash Surplus in 1 /II & III Yr of operation is Rs 5.03 / 55.42 & 141.70 lacs respectively.

2. The WC funds amount to Rs 5,00,000/- payable @15% over the next 5 years.

3. The Term Loan amounts to Rs 20,00,000/- payable @ 13% over the next 6 years. A Moratarium is offered for t
3. Equity addition will be at Rs 13,00,000…( addl 2.6 lakhs shares @ par value 5/- ) in Yr 1.
LE CUTLERY

YEARLY PROJECTIONS
2021 2022 2023 REMARKS

7,871,263 13,292,491 20,785,525

- - -
5,295,819 7,356,436 10,011,778
- - -
125,409 136,598 146,508
13,292,491 20,785,525 30,943,811

100,000 200,000 200,000

781,250 976,563 1,220,703
50,000 50,000 50,000
- - -
3,812,500 3,789,063 3,515,625
2,250,000 2,812,500 3,515,625

6,993,750 7,828,125 8,501,953

14,170,004 26,249,891 43,227,383

cs respectively.

xt 6 years. A Moratarium is offered for the Yr 1.

value 5/- ) in Yr 1.
 A PROJECT REPORT ...PLASTIC DISPOSABLE CUTLERY UNIT
PROFITABILITY CHART

YEARLY PROJECTIONS
S/No PARAMETERS 2019 2020

A) Sales Revenue: 3 Mths 12 mths

Total Sales revenue 2184000 12480000

Income on Investment
TOTAL: 2184000 12480000

B) Operating expenses:

Administration & Selling Expenses 1589105 5422464

Raw Material Consumed 426510 974880
Other Consumables 21326 48744

TOTAL: 2036941 6446088

C) Gross Profit (A-B) 147060 6033912

D) Profit Before Depreciation, Interest & Tax 147060 6033912

PBDIT

E) Depreciation 56400 147540

F) Profit Before Interest & Tax 90660 5886372

PBDT

G) Interest
Interest on Loan( WC + TL ) 69028 383328

H) Profit Before Tax 21632 5503044

PBT

I) Income Tax @ 30% 6489 1650913

J) Profit After Tax( PAT) 15142 3852131

K) Depreciation Add Back 56400 147540

L) Net Profit 71542 3999671

CUTLERY UNIT

RLY PROJECTIONS
2021 2022 2023 REMARKS

12 mths 12 Mths 12 mths

15600000 19500000 24375000 1. Sales will increase by 25% each year.

15600000 19500000 24375000

6292183 7109303 8181447

974880 1096740 1096740 RM for 1st year is at 50% of yearly requirement.
48744 54837 54837 2. Other Consumables are at 5% of RM cost

7315807 8260880 9333024

8284193 11239120 15041976

8284193 11239120 15041976

125409 136598 146108 3. Depreciation @ 15 % on White Goods & Plant-machinery

8158784 11102522 14895868

593328 593328 593328 4. WC of Rs 5.0 lacs carries an Interest @ 15.0% for 5 years
Term Loan of Rs 20.0 lacs is @ 13% for 7 yrs.
7565456 10509194 14302540 1 x Yr is the Moratarium offered on Term Loan.

2269637 3152758 4290762

5295819 7356436 10011778

125409 136598 146108

5421228 7493034 10157886

early requirement.
% of RM cost

hite Goods & Plant-machinery.

Interest @ 15.0% for 5 years.

@ 13% for 7 yrs.
ed on Term Loan.
 A PROJECT REPORT ON PLASTIC DISPOSABLE CUTLERY UNIT
REPAYMENT SCHEDULE -TERM LOAN

EMI CALCULATOR
ANNEXURE 14
S/No LOAN TYPE Interest rate (%) Duration

1 Working capital ( CC Limit ) 12 60

@ 15% pa.

TOTAL EMI ( Rs )

S/No Month EMI Interest

1 0
2 1 14583 6250
3 2 14583 6250
4 3 14583 6250
5 4 14583 6250
6 5 14583 6250
7 6 14583 6250
8 7 14583 6250
9 8 14583 6250
10 9 14583 6250
11 10 14583 6250
12 11 14583 6250
13 12 14583 6250
14 13 14583 6250
15 14 14583 6250
16 15 14583 6250
17 16 14583 6250
18 17 14583 6250
19 18 14583 6250
20 19 14583 6250
21 20 14583 6250
22 21 14583 6250
23 22 14583 6250
24 23 14583 6250
25 24 14583 6250
 26 25 14583 6250
27 26 14583 6250
28 27 14583 6250
29 28 14583 6250
30 29 14583 6250
14583 6250

S/No Month EMI Interest

31 30 14583 6250
32 31 14583 6250
33 32 14583 6250
34 33 14583 6250
35 34 14583 6250
36 35 14583 6250
37 36 14583 6250
38 37 14583 6250
39 38 14583 6250
40 39 14583 6250
41 40 14583 6250
42 41 14583 6250
43 42 14583 6250
44 43 14583 6250
45 44 14583 6250
46 45 14583 6250
47 46 14583 6250
48 47 14583 6250
49 48 14583 6250
50 49 14583 6250
51 50 14583 6250
52 51 14583 6250
53 52 14583 6250
54 53 14583 6250
55 54 14583 6250
56 55 14583 6250
57 56 14583 6250
58 57 14583 6250
59 58 14583 6250
60 59 14583 6250
ABLE CUTLERY UNIT

Amount(Rs ) Interest Value ( RTotal Amount ( Rs ) EMI

500000 75000 875000 14583

500000 75000 875000 14583

Principal Repayment OST Principal Remark

500000
8333 491667
8333 483334
8333 475001
8333 466668
8333 458335
8333 450002
8333 441669
8333 433336
8333 425003
8333 416670
8333 408337
8333 400004
8333 391671
8333 383338
8333 375005
8333 366672
8333 358339
8333 350006
8333 341673
8333 333340
8333 325007
8333 316674
8333 308341
8333 300008
 8333 291675
8333 283342
8333 275009
8333 266676
8333 258343

Principal Repayment OST Principal Remarks

8333 250010
8333 241677
8333 233344
8333 225011
8333 216678
8333 208345
8333 200012
8333 191679
8333 183346
8333 175013
8333 166680
8333 158347
8333 150014
8333 141681
8333 133348
8333 125015
8333 116682
8333 108349
8333 100016
8333 91683
8333 83350
8333 75017
8333 66684
8333 58351
8333 50018
8333 41685
8333 33352
8333 25019
8333 16686
8333 8353
 A PROJECT REPORT ON - DISPOSABLE PLASTIC CUTLERY
REPAYMENT SCHEDULE FOR TERM LOANS

EMI CALCULATOR
ANNEXURE 14
S/No LOAN TYPE Interest rate(%) Duration Amount(Rs )

1 Term Loan 13% 72 2000000

( Ist year of )
Moratarium
TOTAL EMI ( Rs ) 2000000

S/No Month EMI Interest Principal Repay

1 0
2 1 52778 21667 31111
3 2 52778 21667 31111
4 3 52778 21667 31111
5 4 52778 21667 31111
6 5 52778 21667 31111
7 6 52778 21667 31111
8 7 52778 21667 31111
9 8 52778 21667 31111
10 9 52778 21667 31111
11 10 52778 21667 31111
12 11 52778 21667 31111
13 12 52778 21667 31111
14 13 52778 21667 31111
15 14 52778 21667 31111
16 15 52778 21667 31111
17 16 52778 21667 31111
18 17 52778 21667 31111
19 18 52778 21667 31111
20 19 52778 21667 31111
21 20 52778 21667 31111
22 21 52778 21667 31111
23 22 52778 21667 31111
24 23 52778 21667 31111
25 24 52778 21667 31111
26 25 52778 21667 31111
27 26 52778 21667 31111
28 27 52778 21667 31111
29 28 52778 21667 31111
Interest Value ( Total Amount ( REMI

260000 3800000 52778

3800000 52778

OST Principal Remark

2000000
1968889
1937778
1906667
1875556
1844445
1813334
1782223
1751112
1720001
1688890
1657779
1626668
1595557
1564446
1533335
1502224
1471113
1440002
1408891
1377780
1346669
1315558
1284447
1253336
1222225
1191114
1160003
1128892
 A PROJECT REPORT ...DISPOSABLE PLASTIC CUTLERY
SALES REVENUE

2019-20

S/No Offering Unit rate Quantity Total Prodn Total Cost

per item per day per Month pm

1 Thermocol Thali 10 2000 52000 520000

2 Thermocol Dona 5 2000 52000 260000

3 Thermocol Glasses 5 2000 52000 260000

TOTAL SALES TURNOVER 1040000

NOTE:

AVALON Industries will work on a Production capacity of 70,000 Kg pa.

The Capacity Utilisation will be 70%/ 80% & 90% in the subsequent 5 year period.
The Sales Turnover for (2019-20..3 Mths -Jan to March ) will be Rs 21.84 lacs.
The Sales Turnover for (2020-21) will be Rs 1.248 Crs.
 2019-20 2020-21 2020-21
At 70% At 80%
Capacity Total Capacity Total Sales Remarks
Utilisation Sales(3 Mths) Utilisation pa

364000 1092000 416000 6240000 23400 kgs of RM

182000 546000 208000 3120000 23400 kgs of RM

182000 546000 208000 3120000 23400 kgs of RM

2184000 12480000
 A PROJECT REPORT ON PLASTIC DISPOSABLE CUTLERY UN
DEPRECIATION

Schedule of Depreciation

YEAR I
Particulars Rate of Dep. Opening
Additions Dep.

White Goods 15% - 110,000 6,600

Plant /Machinery 15% - 830,000 49,800

GRAND 0 940,000 56,400

Total
POSABLE CUTLERY UNIT

ANNEXURE-II

YEAR I YEAR II YEAR III YEAR IV

Clo. WDV Additions Dep. Clo. WDV Additions Dep. Clo. WDV Additions Dep.

103,400 0 15,510 87,890 0 13,184 74,707 0 11,206

780,200 100000 132,030 648,170 100000 112,226 635,945 200000 125,392

883,600 100,000 147,540 736,060 100,000 125,409 710,651 200,000 136,598

 ANNEXURE-II

YEAR IV YEAR V

Clo. WDV Additions Dep. Clo. WDV

63,501 0 9,525 53,975

710,553 200000 136,583 773,970

774,053 200,000 146,108 827,945

 A PROJECT REPORT ..PLASTICS DISPOSABLE CUTLERY UNIT
WORKING CAPITAL...INTEREST

S/No PARAMETER Interest Loan Amount

Interest Paid on Working Capital @ 15.0% 75,000 500000
on CC-Amount: Rs 8,00,000/-

Interest paid on TERM LOAN@ 12% 260,000 2000000

of Rs 20,00,000/-

TOTAL: 335,000 2500000

UTLERY UNIT

Amount+ Interest Mths EMI

1175000 60 19583

3560000 72 49444

4735000 69028
 A PROJECT REPORT ..PLASTIC DISPOSABLE CUTLERY UNIT
WORKING CAPITAL REQUIREMENTS

Years
PARTICULARS
I II III
( 3 Months )
CURRENT ASSETS

Services & Raw Material 304650 1218600 1523250

Sundry Debtors 2080000 8320000 10400000
Other Consumables 0 0 0

Total 2384650 9538600 11923250

CURRENT LIABILITIES

Sundry Creditors 100000 125000 143750

Expenses Payable 50000 62500 71875

Total 150000 187500 215625

Net Working Capital 2234650 9351100 11707625

Increase in Working Capital 7116450 2356525

NOTES TO ACCOUNT:

1 Interest rates will increase by 25% each year.

2 The Average AR will be 50 % of Sales from Wholesalers in NCR.

LERY UNIT

IV V REMARKS

1904063 2380078
13000000 16250000
0 0

14904063 18630078

165313 190109
82656 95055

247969 285164

14656094 18344914

2948469 3688820
 A PROJECT REPORT ...PLASTIC DISPOSABLE CUTLERY UNIT
SALES REVENUE

A Plastic Disposable Cutlery unit 2019-20

S/No Offering Unit rate Quantity Total Prodn Total Cost

per item per day per Month pm

1 Thermocol Thali 10 2000 52000 520000

2 Thermocol Dona 5 2000 52000 260000

3 Thermocol Glasses 5 2000 52000 260000

TOTAL SALES TURNOVER 1040000

NOTE:

AVALON Industries will work on a Production capacity of 70,000 Kg pa.

The Capacity Utilisation will be 70%/ 80% & 90% in the subsequent 5 year period.
The Sales Turnover for (2019-20..3 Mths -Jan to March ) will be Rs 21.84 lacs.
The Sales Turnover for (2020-21) will be Rs 1.248 Crs.
ERY UNIT

2019-20 2020-21 2020-21

At 70% At 80%
Capacity Total Capacity Total Sales Remarks
Utlisation Sales(3 Mths) Utilisation pa

364000 1092000 416000 6240000 23400 kgs of RM

182000 546000 208000 3120000 23400 kgs of RM

182000 546000 208000 3120000 23400 kgs of RM

2184000 12480000
A PROJECT REPORT ...PLASTIC DISPOSABLE CUTLERY UNIT
LEASING SCHEDULE

LEASING SCHEDULE
No. of Unit Price Total Price

Director-Table + Chair 2 8000 16000

Prodn Manager-Table + Chair 1 6000 6000
(Fin/Pur/Sales Executive) - Table + Chair 4 5000 20000
Reception Table + Chair 1 5000 5000
Stores Head-Table + Chair 2 5000 10000
Reception Sofa + Centre table 1 5000 5000
Air Conditioners-1.5 tons 2 25000 50000
UPS- ( 3 KVA ) Office 1 15000 15000
Genset-3 Kva ( Plant ) 1 50000 50000
Laptop-4Gb RAM/500GB HDD/Windows 10 2 25000 50000
Desktop-4GB RAM/500 Gb HDD/Windows 6 22000 132000
Stationary Cupboard 6 8000 48000
32 inch TV 1 15000 15000
2016 Cars for Directors. 2 200000 400000

TOTAL : 822000

NOTES TO ACCOUNT: Amount

1. All Computers /laptops & Furniture are on 822000 At 14% pa 0

Lease. for 5 Yrs. pm
Lease % Period Interest Interest Amount EMI
(Mths ) ( 1 Yrs ) ( 5 Yrs )
14 60 2240 11200 27200 453
14 60 840 4200 10200 170
14 60 2800 14000 34000 567
14 60 700 3500 8500 142
14 60 1400 7000 17000 283
14 60 700 3500 8500 142
14 60 7000 35000 85000 1417
14 60 2100 10500 25500 425
14 60 7000 35000 85000 1417
14 60 7000 35000 85000 1417
14 60 18480 92400 224400 3740
14 60 6720 33600 81600 1360
14 60 2100 10500 25500 425
14 60 56000 280000 680000 11333

115080 575400 23290

EMI

23290
 A PROJECT REPORT FOR PLASTIC DISPOSABLE CUTLERY UNIT

BREAK-EVEN POINT ANALYSIS

S/No PARAMETER YR 1 YR 2 YR 3

A SALES REVENUE: 2184000 12480000 15600000

B VARIABLE OPERATING EXPENSES:

Admin/Selling Expenses 1589105 5422464 6292183

Raw Material expense 426510 974880 974880
Other Consumables 21326 48744 48744
Sub-Total: 2036941 6446088 7315807

C GROSS PROFIT ( CONTRIBUTION ): 147060 6033912 8284193

D FIXED OVERHEADS

SALARY/WAGES-Allowances 1,121,500 3,364,500 4,205,625

Maintenance/Repair expenses 5000 6250 7813
Sub Total: 1126500 3370750 4213438

E TOTAL CASH FIXED OVERHEADS: 1126500 3370750 4213438

Depreciation 54600 147540 125409

Preliminary/Pre-operative Expenses 122000 0 0

F TOTAL CASH NON-FIXED OVERHEADS 176600 147540 125409

G TOTAL FIXED OVERHEADS ( G ): E+F 1303100 3518290 4338847

H BREAK-EVEN POINT= (G/C)*100 58 52

J BREAK-EVEN SALE REVENUE: 4373145 17283752

K CASH BREAK-EVEN POINT=(D/C)*100 56 51

YR 4 YR 5 REMARKS

19500000 24375000

7109303 8181447
1096740 1096740
54837 54837
8260880 9333024

11239120 15041976

5,257,031 6,571,289
9766 12207
5266797 6583496

5266797 6583496

136598 146108
0 0

136598 146108

5403395 6729604

48 45

17283752 15865302

47 44