Land, building & its develpoment

Land & Building 1000 sq. mtrs. @ Rs.4,000 per sq. mtr
Development Construction

4000000
1000000

Total

5000000

Plant & Machinery

No.
Cutting machine
Stitching Machines
Printing Machine
Curing Machine
Iron (press)
Cutting table

Rate
1
20
1
1
5
1

25000
25000
200000
350000
200
25000

Total

Total
25000
500000
200000
350000
1000
25000

1101000

Other Fixed Assets

Computer with printer
Office Tables
Executive chairs
Visitors Chairs
Almirahs & Cabinets
Installation Cost
Electrical, lighting, etc.

Total

1
1
2
3
3
20

50000
10000
3000
1000
10000
2000
300

50000
10000
6000
3000
30000
2000
6000

107000

Working capital requirement

Raw material

Rs
Qty

Fabric
Threads
Packaging
Ink

Rs/Unit

10,000 (mtrs.)
10000 (Nos.)
300 (Nos.)
100 kg

35
5
60
320

350000
50000
18000
32000
450000

Salaries & wages/Month

No.

Manager
Cutting master
Tailor
Supervisor
Machine Operators
Packing
Other clerical Staff

Rs.

1
20
1
4
4
1
33

15000

15000

4000
8000
6000
4000
3000
7000

4000
160000
6000
16000
12000
7000

220000

Utilities & Overheads

Power Consumption
Stationery, postage, telephone, etc.
Repairs & maintenance
Traveling & conveyance exp
Miscellaneous
Administrative & selling overheads

15000
5000
3000
3000
2000
45000
73000

Total

743000

Margin money for working capital money

185750

Working capital for 1 year

8916000

Total cost of the project

Capital cost of the project
Working capital requirement

6218000
743000

Total

6961000

Means of Finance
Own capital

1961000

Long term loan

For land & building
For plant & machinery

4000000
1000000

Short term loan

Working capital loan
6961000

Capital cost of the project

Land, building & its developments
Plant & machinery
Other fixed assets
Preliminaries & preoperative expenses
Contingencies

5000000
1101000
107000
5000
5000
6218000

Income Statement
1st year

2nd year

3rd year

4th year

5th year

Income
Sales revenue

10800000 12600000 14400000 16200000 18000000

Expenditure
Raw Materials

5400000

6300000

7200000

8100000

9000000

Salaries & wages

2640000

2904000

3171240

3438864

3708540

180000

180000

180000

180000

180000

Repairs & maintenance

36000

36000

36000

36000

36000

Traveling expenses

36000

36000

36000

36000

36000

Stationery, telephone, postage etc.

60000

60000

60000

60000

60000

Administrative & selling expenses

540000

540000

540000

540000

540000

24000

24000

24000

24000

24000

Loan payment to bank

700000

700000

700000

700000

700000

Interest on Long term loan

800000

688000

576000

464000

352000

Interest on investment

294150

294150

294150

294150

294150

Depriciation on Land &Building

250000

237500

225625 214343.3 203626.6

Depreciation on Plant & machinery

165150

140377.5

119320.9 101422.7 86209.33

Depreciation on Furniture & fixtures

10700

9630

8667

7800.3

7020.27

11136000

###

###

###

###

Power & fuel

Miscellaneous expenses

Net profit/loss

-336000

450342.5 1228997.1 2003419.7 2772453.8

Less: Income tax

Profit after tax

0 135102.75 368699.13 601025.91 831736.14

-336000 315239.75 860297.97

###

###

Cost of Production per year

1st year
Recurring expenses

9616000

Depreciation on Land & building @ 5%

250000

Deprecation on the Plant & Machinery @ 15%

165150

Depreciation on office furniture and equipments @ 10%

10700

Interest on Long term loan @16%

800000

Interest on total investment @ 15%

294150

Total

11136000

Total Capital Investment

Land & Building

5000000

Machinery & Equipments

1208000

Working capital for 3 months

2229000
8437000

Calculation of Sales Revenue

1st year

Installed Capacity

2nd year

3rd year

4th year

5th year

600000

600000

600000

600000

600000

180

180

180

180

180

60%

70%

80%

90%

100%

108

126

144

162

180

Installed Capacity (in Rs.)

Capacity Utilization
No. of shifts
Turnover

Note

Workable time

8 hours per day

Maximum Capacity (pieces per day)

2000

No. of Machines

20

No. of working days per year

300

Production at 100% capacity

pieces

600000

Sales Price (per piece)

Rs.

30

Sale value at 100% level

Rs.

180

Calculation of cost of salaries and wages

Nature of staff

NOS.

Average salary
Amount (Rs.)

Annual salary
Amount (Rs.)
1st year 2nd year 3rd year 4th year
15000
16500
18150
19700

5th year
21275

Manager

15000

Cutting master

4000

4000

4400

4800

5200

5600

20

8000

160000

176000

192000

208000

224000

Supervisor

6000

6000

6600

7200

7800

8400

Machine Operators

4000

16000

17600

19200

20800

22400

Packing

3000

12000

13200

14520

15972

17570

Other clerical Staff

7000

7000

7700

8400

9100

9800

Tailor

Total

220000 242000 264270 286572 309045

2640000 2904000 3171240 3438864 3708540

Assumption: Increase in salary @ 10% per year as compared to previous year

Calculation of interest on long term loans

1st year

For Land & building

Interest @ 16%

2nd year 3rd year 4th year 5th year

4000000 3500000 3000000 2500000 2000000

640000

560000

480000

400000

320000

1000000

800000

600000

400000

200000

Interest @ 16%

160000

128000

96000

64000

32000

Total

800000

688000

576000

464000

352000

For Plant & machinery

Repayment schedule long term loan

year

Loan outstanding

Repayment

Amount Balance

For Land & building

1
2
3
4
5
6
7
8

4000000
3500000
3000000
2500000
2000000
1500000
1000000
500000

500000
500000
500000
500000
500000
500000
500000
500000

3500000
3000000
2500000
2000000
1500000
1000000
500000
0

For Palnt & machinery

1
2
3
4
5

1000000
800000
600000
400000
200000

200000
200000
200000
200000
200000

800000
600000
400000
200000
0

Assumption: Long term loan payable in 5 years

Amount Balance

Calculation of depreciation on assets

1st

2nd

3rd

4th

5th

A. Land & Building

Balance
Less: Depreciation @5%

5000000

4750000

250000

237500

4750000

4512500

4512500

4286875

4072531

225625 214343.75 203626.55

4286875

###

###

935850 795472.5

###

###

B. Plant & Machineries

Balance
Less: Depreciation @15%

1101000

165150 140377.5 119320.88 101422.74 86209.33

935850 795472.5

###

###

###

C. Furnitur & Fixtures

Balance
Less: Depreciation @10%

107000

96300

86670

10700

9630

8667

96300

86670

78003 70202.7
7800.3

7020.27

78003 70202.7 63182.43

425850 387507.5 353612.88 323566.79 296856.15