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DETAILED PROJECT REPORT FOR

M/S. abc cult


(A School Project)

Bus.Office:
Address
Khurdai
Lucknow

This project has been designed to establish a School at Lucknow. It is a Proprietorship concern owned by XYZ. The proprietor
hail from business family and is having experience in this line of business.
Now it is proposed to start operation with financial assistance from a suitable commercial bank.
Hence this project Report is presented.

Prepared by:
Accountnt name
Chartered Accountant
Address Line 1
Address Line 2
Lucknow 226024
Phone.No.
Mobile :
e-mail :
M/S. abc cult

I N D E X

SL. CONTENTS

CHAPTER :
1 PROJECT AT GLANCE
2 COST OF THE PROJECT AND MEANS OF FINANCE
3 PROJECTIONS AND PROFITABILITY STATEMENT
4 CASH - FLOW STATEMENT
5 BALANCE SHEET

AN N E X U R E S
1 DEPRECIATION SCHEDULE
2 BREAK EVEN ANALYSIS
3 INTEREST SCHEDULE
4 DEBT COVERAGE RATIO
5 ANALYSIS ON RETURN ON INVESTMENT
6 ASSUMPTION AND WORKING NOTES
M/S. abc cult

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M/S. abc cult
CHAPTER NO. 1
PROJECT AT GLANCE :
1 Name : M/S. abc cult
2 Address : Reg.Office:
Address
Khurdai
Lucknow

3 Nature of Business : Trading

4 Constitution : Proprietorship
Proprietor :

5 Cost of the project : (Rs. In Lakhs)


Particulars Total
Operational Cost 53.43
Furniture & Fittings 5.00
Generator & Office Equipemnts 1.00
Deposits 2.00
Interest during the impl. Period 3.58
Total 65.00

Means of Finance :
Particulars Total
Proprietor Contribution 9.00
Term Loan from Bank / Institution 56.00

Total 65.00

6 Debt Equity Ratio : 6.22 :1


7 Debt Coverage Ratio : 3.37
8 Gross Profit Ratio : 9.34 First Year Operation.
9 Net Profit Ratio : 8.77 First Year Operation.
10 Employment Potential : 10
11 Return on Investment : 153.13 %

Page 6 of 11
M/S. abc cult
Lucknow

(A School Project)

STATEMENT NO. 1

COST OF THE PROJECT AND MEANS OF FINANCE:

The project cost has been estimated at Rs. 65Lakhs

Brief details of the project cost is given below

Cost of the project : (Rs. In Lakhs)


Particulars Total
Operational Cost 53.43
Furniture & Fittings 5.00
Generator & Office Equipemnts 1.00
Deposits 2.00
Interest during the impl. Period 3.58
Total 65.00

Means of Finance :
Particulars Total
Promoters Contribution 9.00
Term Loan from Bank / Institution 56.00
Total 65.00
M/S. abc cult
STATEMENT NO.2
PROJECTIONS AND PROFITABILITY STATEMENT
Operating years
PARTICULARS
0 1 2
A.INCOME:
Income 390.00 936.00 1,123.20

(The Revenue are expected to increase by 20% every year)


390.00 936.00 1,123.20
B. EXPENSES:
Purchase Cost and Related cost 351.00 842.40 1,010.88
Salary 6.00 6.30 6.62
Power Charges 0.12 0.13 0.13
Depreciation 0.45 0.83 0.71
Cost of Operations 357.57 849.66 1,018.33

C. Gross Profit [ A - B ] 32.43 86.34 104.87

D. Interest: on term loan 3.58 6.18 4.42


3.58 6.18 4.42

E. Office & Admin. Exp. 1.80 1.89 1.98

F. Profit before Tax[ C - (D+E) ] 27.06 78.28 98.46

G. Income Tax 8.12 23.48 29.54

H. Profit after Tax ( F-G ) 18.94 54.79 68.92

I. Depreciation added back 0.45 0.83 0.71

J. Cash Accruals ( H + I ) 19.39 55.63 69.63

L. Repayment of Term Loan 4.00 12.00 16.00

M. Net Cash A'ble (J - K)) 15.39 43.63 53.63


In Lakhs
Operating years
3 4

1,347.84 1,617.41

1,347.84 1,617.41

1,213.06 1,455.67
6.95 7.29
0.14 0.15
0.60 0.51
1,220.74 1,463.62

127.10 153.79

1.95 -
1.95 -

2.08 2.19

123.06 151.60

36.92 45.48

86.14 106.12

0.60 0.51

86.75 106.63

24.00 -

62.75 106.63
M/S. abc cult
STATEMENT No.3

CASH - FLOW STATEMENT :


(A School Project)
Operating Years
PARTICULARS
0 1 2 3 4
A. Source of Funds :
Profit after Tax 18.94 54.79 68.92 86.14 106.12
Depreciation 0.45 0.83 0.71 0.60 0.51
Term Loan from Bank 56.00
Promoters Contribution 9.00 - - - -

TOTAL OF ' A ' 84.39 55.63 69.63 86.75 106.63

B. Application of Funds :
Furniture & Fittings 5.00 - - - -
Gen & Office Equipts, 1.00
Deposits 2.00
Repayment of loan 4.00 12.00 16.00 24.00 -

TOTAL OF ' B ' 12.00 12.00 16.00 24.00 -

C. Opening Balance - 72.39 116.01 169.64 232.39

D. Net surplus ( A - B ) 72.39 43.63 53.63 62.75 106.63

E. Closing Balance 72.39 116.01 169.64 232.39 339.02


M/S. abc cult
STATEMENT No.4

BALANCE SHEET
(A School Project)
Operating Years
PARTICULARS
0 1 2 3 4

A. LIABILITIES :
Capital Account 9.00 9.00 9.00 9.00 9.00
Reserves & Surplus 18.94 73.73 142.65 228.80 334.92
Secured Loan 52.00 40.00 24.00 - -

TOTAL 79.94 122.73 175.65 237.80 343.92

B. ASSETS :
Fixed Assets 5.55 4.72 4.01 3.41 2.90
Current Assets
Cash & Bank 72.39 116.01 169.64 232.39 339.02
Deposits 2.00 2.00 2.00 2.00 2.00

TOTAL 79.94 122.73 175.65 237.80 343.92


M/S. abc cult
Lucknow

(A HDPE/PP Fabrics Project)

ANNEXURE NO.1

DEPRECIATION SCHEDULE: (A School Project)


WDV at the year end
PARTICULARS
0 1 2 3 4
1. Furniture & Fittings 5.00 4.63 3.93 3.34 2.84
Depreciation @ 15% 0.38 0.69 0.59 0.50 0.43
WDV 4.63 3.93 3.34 2.84 2.41

4. Genr & Office Equipts 1.00 0.93 0.79 0.67 0.57


Depreciation @ 15% 0.08 0.14 0.12 0.10 0.09
WDV 0.93 0.79 0.67 0.57 0.48

Total Assets
[1+2+3+4] 5.55 4.72 4.01 3.41 2.90

Total Depreciation
[1+2+3+4] 0.45 0.83 0.71 0.60 0.51
M/S. abc cult
ANNEXURE NO.2

BREAK-EVEN ANALYSIS
Years
(A School Project)
0 1 2 3 4
A. Receipts 390.00 936.00 1,123.20 1,347.84 1,617.41

B. Variable cost: 357.57 849.66 1018.33 1220.74 1463.62

D. Fixed costs:
Depreciation 0.45 0.83 0.71 0.60 0.51
Interest on Term Loan 3.58 6.18 4.42 1.95 0.00
Administration Expenses 1.80 1.89 1.98 2.08 2.19
5.83 8.90 7.11 4.64 2.70

E. Contribution [ B - C ] 32.43 86.34 104.87 127.10 153.79

F. P.V.Ratio [ E/B x 100 ] 8.32 9.22 9.34 9.43 9.51

G. Break - even [ Value ]


[ D / F x 100 ] 70.05 96.45 76.18 49.16 28.39

H. Cash Break Even 64.64 87.43 68.60 42.78 23.01


[ Without Depreciation]
M/S. abc cult
ANNEXURE NO.3

INTEREST SCHEDULE : (Rs. in L


(A School Project) QUARTERS OPENING LOAN CLOSING INTEREST
BALANCE REPAYMENT BALANCE PER QTR.
0 1 56.00 - 56.00 0.00
2 56.00 - 56.00 0.00
3 56.00 2.00 54.00 1.82
4 54.00 2.00 52.00 1.76
I 1 52.00 3.00 49.00 1.69
2 49.00 3.00 46.00 1.59
3 46.00 3.00 43.00 1.50
4 43.00 3.00 40.00 1.40
II 1 40.00 4.00 36.00 1.30
2 36.00 4.00 32.00 1.17
3 32.00 4.00 28.00 1.04
4 28.00 4.00 24.00 0.91
III 1 24.00 6.00 18.00 0.78
2 18.00 6.00 12.00 0.59
3 12.00 6.00 6.00 0.39
4 6.00 6.00 - 0.20

NOTE : Interest on Term Loan is calculated at 13% per annum liquidated in


4 year
(Rs. in Lakhs)
INTEREST
P.A.

3.58

6.18

4.42

1.95
M/S. abc cult
ANNEXURE NO.4

DEBT SERVICE COVERAGE RATIO :


Operating Years
(A School Project)
0 1 2 3 4
A. SOURCES :
Profit after tax 18.94 54.79 68.92 86.14 106.12
Depreciation 0.45 0.83 0.71 0.60 0.51
Interest on term loan 3.58 6.18 4.42 1.95 -
TOTAL OF ' A ' 22.96 61.80 74.05 88.70 106.63

B DEBT :
Term loan installment 4.00 12.00 16.00 24.00 -
Interest on Term Loan 3.58 6.18 4.42 1.95 -

TOTAL OF ' B ' 7.58 18.18 20.42 25.95 -

C Debt Service Coverage Ratio


DSCR [A/ B ] 3.03 3.40 3.63 3.42 -

D Average DSCR 3.37


M/S. abc cult
ANNEXURE NO.5

ANALYSIS OF RETURN ON INVESTMENT :


(A School Project)
1. Return on Investment = Average Return x 100
Capital Employed

2. Return = Profit before tax + Depreciation + Interest on term loan

3. Capital Employed = Cost of the Project

RETURN ON INVESTMENT :

O PE RTI N G YEAR S
PARTICULARS
0 1 2 3 4
Profit before tax 27.06 78.28 98.46 123.06 151.60

Depreciation 0.45 0.83 0.71 0.60 0.51

Interest on Term Loan 3.58 6.18 4.42 1.95 -

31.08 85.28 103.59 125.62 152.11

# Average Return 99.54

# Capital Employed 65.00

# Return on Investment 153.13 %


M/S. abc cult
ANNEXURE NO.6
Assumption and workings notes to the Financial Statements of the Project Report:
1 Revenue In Lakhs
Fee from Students
Total Students Estimated to be in a Month : 50
Fee of each Student : 1.3
Monthly Revenue : 65.00
Yearly Revenue 780.00
First year Revenue for 6 months 390.00
Every year the Revenue is estimated to increase
by 20%.

2 Material Purchase Costs


The expense is estimated to cost at 90% of fee value.
The cost for 1 year is 390*90% = 351 Lakhs

3 Salary
S.No. Category of Employee No.of Salary per Salary per
Employees Month Annuam
1 Faculty 2 6,750.00 162,000.00
2 Helpers 7 4,500.00 378,000.00
3 Accountant 1 5,000.00 60,000.00
Total 10 600,000.00
Note: Increament in salary is taken at 5% per annum

4 Power
Power Charges is estimated at Rs.1000/- per month and provision made for increase
in rates @ 5% per annuam

5 Depreciation:
Depreciation is calculated at the rates prescribed under
the Income Tax Act. Separate Annexure made

6 Interest:
Interest on term loan is calculated at 13% per annum
Term loan will be repaid in 4 year

7 Administration Expenses:
Administration expenses includes school management, Post & Telephone expenses and other
Office maintenance expenses.
It is estimated at Rs.15,000/- per month and provision made for increase in cost
at 5% per annuam

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