DETAILED PROJECT REPORT FOR

Parshv Jai Biscuit

(Biscuit, Nan Katai & Bakery products traders)

Bus.Office:
Address
Milkat No 886 A , A&P Inam Dhamani
Tal - Miraj Dist - Sangli 416416.

This project has been designed to establish a Trading Concern at Sangli . It is a Proprietorship concern owned by Sanjay Anna
Chaugule & Ujwala Sanjay Chaugule . The proprietor hail from business family and is having experience in this line of
business.
 Parshv Jai Biscuit
Lane No- 3 Market Yard, Plot No, 252,
Near Tasgaon Urban Bank, Sangli 416416.
I N D E X

SL. CONTENTS PAGES

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

ANNEXURES
1 DEPRECIATION SCHEDULE 6
2 BREAK EVEN ANALYSIS 7
3 INTEREST SCHEDULE 8
4 DEBT COVERAGE RATIO 9
5 ANALYSIS ON RETURN ON INVESTMENT 10
6 ASSUMPTION AND WORKING NOTES 11
Parshv Jai Biscuit
CHAPTER NO. 1
PROJECT AT GLANCE :
1 Name : Parshv Jai Biscuit
2 Address : Reg.Office:
Address
Milkat No 886 A , A&P Inam Dhamani
Tal - Miraj Dist - Sangli 416416.

3 Nature of Business : Trading

4 Constitution : Proprietorship
Proprietor :

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

Particulars Total
Operational Cost 0.75
Furniture & Fittings 0.50
Machinery & Generator & Office Equipemnts 3.00
Deposits -
Interest during the impl. Period 0.25
Total 4.50

Means of Finance :
Particulars Total
Proprietor Contribution 2.50
Term Loan from Bank / Institution 2.00

Total 4.50

6 Debt Equity Ratio : 0.80 :1

7 Debt Coverage Ratio : 1.99
8 Gross Profit Ratio : 24.19 First Year Operation.
9 Net Profit Ratio : 4.76 First Year Operation.
10 Employment Potential : 10
11 Return on Investment : 14.15 %

Page 4 of 11
Parshv Jai Biscuit
Sangli

(Biscuit, Nan Katai & Bakery products traders)

STATEMENT NO. 1

COST OF THE PROJECT AND MEANS OF FINANCE:

The project cost has been estimated at Rs. 4.5Lakhs

Brief details of the project cost is given below

Cost of the project : (Rs. In Lakhs)

Particulars Total
Operational Cost 0.75
Furniture & Fittings 0.50
Machinery & Generator & Office Equipemnts 3.00
Deposits -
Interest during the impl. Period 0.25
Total 4.50

Means of Finance :
Particulars Total
Promoters Contribution 2.50
Term Loan from Bank / Institution 2.00
Total 4.50
Parshv Jai Biscuit
STATEMENT NO.2
PROJECTIONS AND PROFITABILITY STATEMENT In Lakhs
Operating years
PARTICULARS
1 2 3 4 5
A.INCOME:
Income from Trading Activities 9.00 9.90 10.89 11.98 13.18
Per Day 6000Rs*25*12
(The Quanities Sold are expected to increase by 10% every
year)
9.00 9.90 10.89 11.98 13.18
B. EXPENSES:
Material Purchase Cost and Related cost
(After Adjusting closing stock) 5.40 5.94 6.53 7.19 7.91
Salary 0.96 1.01 1.06 1.11 1.17
Transpotation & Hamali 0.20 0.22 0.23 0.24 0.25
Depreciation 0.26 0.49 0.41 0.35 0.30
Cost of Operations 6.82 7.65 8.24 8.89 9.63

C. Gross Profit [ A - B ] 2.18 2.25 2.65 3.09 3.55

D. Interest: on term loan 0.25 0.20 0.15 0.09 0.03

0.25 0.20 0.15 0.09 0.03

E. Selling & Admin. Exp. 1.50 1.65 1.82 2.00 2.20

F. Profit before Tax[ C - (D+E) ] 0.43 0.39 0.69 1.00 1.32

G. Income Tax 0.13 0.12 0.21 0.30 0.40

H. Profit after Tax ( F-G ) 0.30 0.28 0.48 0.70 0.92

I. Depreciation added back 0.26 0.49 0.41 0.35 0.30

J. Cash Accruals ( H + I ) 0.56 0.76 0.90 1.05 1.22

L. Repayment of Term Loan 0.40 0.40 0.40 0.40 0.40

M. Net Cash A'ble (J - K)) 0.16 0.36 0.50 0.65 1.22

Parshv Jai Biscuit
STATEMENT No.3

CASH - FLOW STATEMENT :

(Biscuit, Nan Katai & Bakery products traders)
Operating Years
PARTICULARS
1 2 3 4 5
A. Source of Funds :
Profit after Tax 0.30 0.28 0.48 0.70 0.92
Depreciation 0.26 0.49 0.41 0.35 0.30
Term Loan from Bank 2.00 -
Promoters Contribution 2.50 - - - -

TOTAL OF ' A ' 5.06 0.76 0.90 1.05 1.22

B. Application of Funds :
Furniture & Fittings 0.50 - - - -
Gen & Office Equipts, 3.00
Deposits -
Repayment of loan 0.40 0.40 0.40 0.40 0.40

TOTAL OF ' B ' 3.90 0.40 0.40 0.40 0.40

C. Opening Balance - 1.16 1.52 2.02 2.67

D. Net surplus ( A - B ) 1.16 0.36 0.50 0.65 0.82

E. Closing Balance 1.16 1.52 2.02 2.67 3.49

Parshv Jai Biscuit
STATEMENT No.4

BALANCE SHEET
(Biscuit, Nan Katai & Bakery products traders)
Operating Years
PARTICULARS
1 2 3 4 5

A. LIABILITIES :
Capital Account 2.50 2.50 2.50 2.50 2.50
Reserves & Surplus 0.30 0.58 1.06 1.76 2.68
Secured Loan 1.60 1.20 0.80 0.40 (0.00)

TOTAL 4.40 4.28 4.36 4.66 5.18

B. ASSETS :
Fixed Assets 3.24 2.75 2.34 1.99 1.69
Current Assets
Cash & Bank 1.16 1.52 2.02 2.67 3.49
Deposits - - - - -

TOTAL 4.40 4.28 4.36 4.66 5.18

Parshv Jai Biscuit
Sangli

(Biscuit, Nan Katai & Bakery products traders)

ANNEXURE NO.1

DEPRECIATION SCHEDULE: (Biscuit, Nan Katai & Bakery products traders)

WDV at the year end
PARTICULARS
1 2 3 4 5
1. Furniture & Fittings 0.50 0.46 0.39 0.33 0.28
Depreciation @ 15% 0.04 0.07 0.06 0.05 0.04
WDV 0.46 0.39 0.33 0.28 0.24

4. Genr & Office Equipts 3.00 2.78 2.36 2.00 1.70

Depreciation @ 15% 0.23 0.42 0.35 0.30 0.26
WDV 2.78 2.36 2.00 1.70 1.45

Total Assets
[1+2+3+4] 3.24 2.75 2.34 1.99 1.69

Total Depreciation
[1+2+3+4] 0.26 0.49 0.41 0.35 0.30
 Parshv Jai Biscuit
ANNEXURE NO.2

BREAK-EVEN ANALYSIS
Years
(Biscuit, Nan Katai & Bakery products traders)
1 2 3 4 5
A. Receipts 9.00 9.90 10.89 11.98 13.18

B. Variable cost: 6.82 7.65 8.24 8.89 9.63

D. Fixed costs:
Depreciation 0.26 0.49 0.41 0.35 0.30
Interest on Term Loan 0.25 0.20 0.15 0.09 0.03
Administration Expenses 1.50 1.65 1.82 2.00 2.20
2.01 2.34 2.37 2.44 2.53

E. Contribution [ B - C ] 2.18 2.25 2.65 3.09 3.55

F. P.V.Ratio [ E/A x 100 ] 24.19 22.69 24.37 25.77 26.95

G. Break - even [ Value ]

[ D / F x 100 ] 8.31 10.31 9.74 9.46 9.39

H. Cash Break Even 7.23 8.17 8.05 8.10 8.28

[ Without Depreciation]
 Parshv Jai Biscuit
ANNEXURE NO.3

INTEREST SCHEDULE : (Rs. in Lakhs)

(Biscuit, Nan Katai & Bakery products traders)
QUARTERS OPENING LOAN CLOSING INTEREST
BALANCE REPAYMENT BALANCE PER QTR.
I 1 2.00 0.10 1.90 0.06
2 1.90 0.10 1.80 0.07
3 1.80 0.10 1.70 0.06
4 1.70 0.10 1.60 0.06
II 1 1.60 0.10 1.50 0.06
2 1.50 0.10 1.40 0.05
3 1.40 0.10 1.30 0.05
4 1.30 0.10 1.20 0.05
III 1 1.20 0.10 1.10 0.04
2 1.10 0.10 1.00 0.04
3 1.00 0.10 0.90 0.03
4 0.90 0.10 0.80 0.03
IV 1 0.80 0.10 0.70 0.03
2 0.70 0.10 0.60 0.02
3 0.60 0.10 0.50 0.02
4 0.50 0.10 0.40 0.02
V 1 0.40 0.10 0.30 0.01
2 0.30 0.10 0.20 0.01
3 0.20 0.10 0.10 0.01
4 0.10 0.10 (0.00) 0.00

NOTE : Interest on Loan is calculated at 12% per annum liquidated in

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

0.25

0.20

0.15

0.09

0.03
Parshv Jai Biscuit
ANNEXURE NO.4

DEBT SERVICE COVERAGE RATIO :

Operating Years
(Biscuit, Nan Katai & Bakery products traders)
1 2 3 4 5
A. SOURCES :
Profit after tax 0.30 0.28 0.48 0.70 0.92
Depreciation 0.26 0.49 0.41 0.35 0.30
Interest on term loan 0.25 0.20 0.15 0.09 0.03
TOTAL OF ' A ' 0.81 0.96 1.04 1.14 1.26

B DEBT :
Term loan installment 0.40 0.40 0.40 0.40 0.40
Interest on Term Loan 0.25 0.20 0.15 0.09 0.03

TOTAL OF ' B ' 0.65 0.60 0.55 0.49 0.44

C Debt Service Coverage Ratio

DSCR [A/B] 1.25 1.60 1.91 2.32 2.89

D Average DSCR 1.99

Parshv Jai Biscuit
ANNEXURE NO.5

ANALYSIS OF RETURN ON INVESTMENT :

(Biscuit, Nan Katai & Bakery products traders)
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 :

OPERTING YEARS
PARTICULARS
1 2 3 4 5
Profit before tax 0.43 0.39 0.69 1.00 1.32

Depreciation 0.26 0.49 0.41 0.35 0.30

Interest on Term Loan 0.25 0.20 0.15 0.09 0.03

0.94 1.08 1.25 1.44 1.65

# Average Return 0.64

# Capital Employed 4.50

# Return on Investment 14.15 %
Parshv Jai Biscuit
ANNEXURE NO.6
Assumption and workings notes to the Financial Statements of the Project Report:
1 Revenue In Lakhs
(Biscuit, Nan Katai & Bakery products traders)
Total Estimated sales Per Day Rs 3000/- : 0.3
Monthly Revenue ( 2750 *25 ) : 0.75
Yearly Revenue 9.00
Every year the Revenue is estimated to increase
by 10%.

2 Material Purchase Costs 9

The material is estimated to cost at 60% of sales price. 0.54
The cost for 1 year is 9.00*60% = 5.40Lakhs

3 Salary
S.No. Category of Employee No.of Salary per Salary per
Employees Month Annuam
1 Managers 1 4,500.00 54,000.00
2 Helpers 1 3,500.00 42,000.00
Total 2 96,000.00
Note: Increament in salary is taken at 5% per annum

4 Power
Transpotation & Hamali Charges is estimated at Rs.50000/- per month and provision made for increase
in rates @ 10% 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 12% per annum
Term loan will be repaid in 4 year

7 Selling and Administration Expenses:

Selling expenses includes sales commission, Post & Telephone expenses, transportaion On
Sale, godown rent & Office maintenance expenses Etc.
It is estimated at Rs.1,50,000/- per month and provision made for increase in cost
at 10% per annuam

Page 11 of 11