PROPOSAL

FOR
Ready Mix Concrete Plant at
Rajarhat New Towen Area
FOR NWELOOK INTEX NIRMAN PVT LTD.
IN
KOLKATA
WEST BENGAL
August 2007

PREPARED BY NEWLOOK INTEX NIRMAN PVT. LTD.

Corporate Office :
M.B.TOWER , 299 -BARAKHOLA
KOLKATA – 700 099
033-2426 4786 , TELE-FAX 033-2426 4785
E-mail: parthade_1972@ sify.com
RMC : Concept and its Prospectus :-

RMC or Ready Mix Concrete is the latest concept of easing out the operations for a big
concreting job. Since the demand for such mixed concrete is increasing at the rate of more than
75% per year; the business of putting up RMC plants is upcoming very rapidly. The increasing
competition may hamper hefty initial profits, however first players will dominate the market
without doubt.

In the present infrastructure-development scenario projected through-out 24 Parganas

district, there are very prospective future of setting up RMC Plant considering increasing
demand of existing & ensuing projects of Housing, Roads and Bridges, Food-Parks, Multi-
processing Zones, Township of different Construction Company and other groups and also
various Government sponsored development Projects through Zilla Parishad, Municipal
Corporation, P.W.D., N.H.A.I, W.B.S.R.DA. and big construction company, etc.
 ADVANTAGES OF RMC OVER
CONVENTIONAL SITE MIXED CONCRETE

 Assured and consistent quality of required grades of concrete by following the weight
Batching.
 Speedy and in-time construction through continuous mechanized operations.
 Low lab our and supervisory costs.
 Obviating the need to store cement, sand and aggregate at site.
 Eliminates multi-transportation of raw materials for concrete making.
 Minimize cement wastage because of bulk handling and storage.
 Free from environment problems like noise and air pollution.
 4.0 INFRASTRUCTURE FACILITIES FOR THE PROPOSED
PROJECT

4.1 Location of the Factory : New Town Rajarhat, Kolkata

4.2 Water, Power & other utilities/ : All are

available in adequate quantities to suit our
Services available total requirements. We are installing DG Set of
125 KV to meet the requirements of the project,
baring water will be available for works.

4.3 Distance from the Raw material : a) Cement is readily available in abundance
Market quantities within 70-90 Km from our plant site.

b) Stone chip to be brought in from Birbhum/

Pankur belt located about 70 Km from
plant.
c) Sands available in around 40-45 Km from
plant site.

4.4 Skilled labour available : Yes, adequate manpower / labour is readily

available at competitive rates as per our
requirement.

4.5 Distance from Sales Market for : Normally 20 Km, radius of plant area covering
Finished Goods. Hidco New Towen Rajarhat area, DumDum ,
Lather complex area and part of Kolkata
can be within our working zone.

4.6 Incentives, if any, available from : The proposed project is eligible for subsidy
Govt. (Subsidy, Tax relief etc.) under West Bengal Inventive Scheme 2004
(WBIDC).

4.7 Other Plus points : There are four main areas that will be the focused
for additional benefits on this subject. 1) Cost,
2)Quality, 3) Environment, 4) Standards.
: 1) Cost :- The cost of Ready Mix Concretes can be
split into two separate classifications.

a) Controlled cost -- Input materials, Repairs &

Maintenance, Labour, Transport, Marketing
& Administrations etc.

b) Uncontrolled cost – Excise Duty, Sales Tax,

Service Tax, Pollution Licence Fees, Power
Generation etc. The uncontrolled costs equate
to something like 22% to 25% of the cost of
the delivered Ready Mix Concrete.

: 2) Quality :- Modern Ready Mix Concrete

plants are able to accurately reproduce batches
of concrete based on their sophisticated
weighing system. The variability achievable is
subject only to the variations in the raw
materials being used, with good quality control
systems these can be minimized.

: 3)Environment :- The use of Ready Mixed

Concrete in the Metropolitan areas is limited
due to restriction as to where and when Transit
Mixer trucks can operate. At the same time
there is an acceptance that Site Mixed Concrete
systems and their other accompanying raw
materials are allowed to cover the footpath,
block the drains restrict the flow of traffic, force
pedestrian onto the roadways and create noise
for long periods.

: 4) Standards :- With the introduction of ready

mix concrete there is a need to modernize the
concrete standards from a prescriptive based
system i.e., one where the emphasis is put on the
inputs to a performance based system, where
emphasis is put on the final product. Such a
system may initially apply only to Ready Mixed
Concrete operations, but the benefits in terms of
flexibility and cost reductions will be
worthwhile.

Earlier, there were two sayings commonly

quoted throughout the construction industry : “
Making concrete is an art not a science”, “If
it’s gray and goes hard then its good concrete”.
While the first saying is still partly true the
types of RMC that can now be produced has
changed dramatically in the past 20 years. This
firstly is due in the main to the different types of
admixture chemicals that are now available.
There are also a better understanding of their
uses and properties. Secondly, there has been far
more of a focus on high performance mix
designs that use of top quality aggregates, sands
and cement. This requires better skills from the
people manufacturing it as well as those using it
on site.

This is a product that if used properly will far

outlast the person using it – his son and his
grand children.
5. MANUFACTURING PROCESS

5.1 Details production process from : As annexed with details production/operational

Procurement of raw materials to sequence by Schewing Stetter (India) Pvt. Ltd.
Finished Stock/Dispatch stage.

6. TECHNOLOGICAL ASPECTS

6.1 Process Chosen : Weight Batching Process.

6.2 Alternative process : Volume Batching.

6.3 Reasons for adopting the proposed : Fastest and controlled production, excellence
Process(suitability of the proposed and consistent quality, economical & wastages
Technology) savings of raw material, ensured and timely
delivery by TM enriched customer’s
satisfactions.

6.4 The sources from which the know-how: The process is mostly known by leading
is to be /have been procured. Batching plant manufacturing Co. and the entire
patent is hold with those companies.

6.5 Will there be any by-product? If yes,: Yes, available such as manufacturing of Paver-
the manner of its disposal. Block, Concrete Pole(Electric), Hume – Pipe
etc.

7. QUALITY CONTROL

7.1 Whether ISI Standards are prescribed : Yes.

for the product?

7.2 The Number of the ISI Standard. : IS:456/2000 for mixed concrete design.
IS:10262/1982 for mixed concrete design.
SP:23 for mixed concrete design.
IS::383 for sieve analysis of coarse aggregates..

7.3 Is the company going for ISI or ISO : This will be obtained in due course after the
Certification Mark? Production stabilizes.
8. PROFITABILITY

8.0 THE COST OF PROJECT ARE STATED AS FOLLOWS (Rs. In Lakh)

 Land development cost on the proposed site & building : 13.00

 ‘Stetter make’ Batching Plant CP-30 of 30 m3 per /hour : 39.00
 ‘Terex’ TX 760 BHL 0.24 cum Excavator / Loader : 17.50
 ‘Ashok Leyland’ Model ALGP-680/TC-E4 DG set (140 KVA) 5.55
 Laboratory equipment for concrete, cement & material : 2.40
 ‘Utility” Model Mahindra pick-up van : 5.10
 Pump with Motor ( 1 H.P) for use of Boring water : 0.23
 Packing & Forwarding including duty : 1.72
 Erecting and Commissioning : 5.00
 Other miscellaneous Assets : 0.50
Total : 90.00

The brief history of the above cost component is appended herewith.

THE MEANS OF FINANCE

 Promoter’s contribution(inclusive of land development cost) : 15.00

 Term Loan : 75.00
Total : 90.00

8.1 LAND & BUILDING

(A) Estimate of construction of Building : Rs. 3,78,000.00 (As enclosed quotation).

to be obtained from a qualified Civil The estimate as per drawings done by
Engineer. Qualified Civil Engineer is proposed for
undertaking.

(B) LAND

i) Place : New Town Rajarhat, Kolkata

ii) Area : 3 Bighas & 10 katha (total 70 katha) under lease

iii) Rate per Sq. feet / meter :Leased against monthly rental basis for 50 years

iv) Value : Lease rent @Rs.25,000.00 per month

v) Other expenses, i.e., Registration fee etc. : Rs. 14,000.00

vi) Estimated cost of land development : Rs. 8,85,47.00

vii) Total cost : Rs. 12,78,647.00

( C) PLANT & MACHINERY

8.1 Address of Machinery Suppliers : M/s. Schweing Stetter (India) Pvt. Ltd.
CL-23, Sector – II, karunamoyee(T/No.2)
Salt Lake City, Kolkata 700091(India)

8.2 Quotations from the Machinery Suppliers : As annexed (page No. along with
leaflets for machinery specification.

8.3 List of the machinery items chosen : As annexed (Page No…)

alongwith the name of suppliers.
(out of the available quotations).

8.4 Add the following amount :-

Packing and forwarding : Rs. 1.75 lacs (approx.)
Taxes :
Cost of Erection & installation : Rs. 5.00 lacs(approx.)

8.5 Spares to be purchased along with the : Rates including spares

Machinery(Description & value)
8.6 PLANT & MACHINERY REQUIREMENT
SL Specifications No. Rate Rs. Amount Delivery Suppliers’ name
no (in lac) Rs.(in lac) time
1 ‘Stetter’ make 1 39.00 lac 39.00 lac 4-6 Schewing
Batching Plant (inclusiv weeksStetter (India)
CP-30 of 30 m3 e of Tax Pvt. Ltd. CL-
/hour & 236, Sec-1, Salt
delivery Lake, Kolkata
charge 700091.
2. ‘Stetter’ make 1 1.05 per 1.05 lac 10 days B.K.BANIJYA
Concrete Pump month per month from Pvt. Ltd.
BP25/60 (on hire order
basis).
3. Transit Mixer 4 0.75 lac 3.00 lac 10 days B.K.BANIJYA
(TM) of 6 m3 per per month from Pvt. Ltd.
capacity (on hire month order
basis)
4. TEREX TX 760 1 17.50 lac 17.50 lac 15-20 Inframech
BHL 0.24 m3 (brand (inclusive days Solutions Pvt.
Excavator/ loader new) of all against
Ltrd. 5th floor,
with KOEL taxes.) order “Swastik”
4R1040 TC Diesel Nazrul Islam
Eng (1.00 cum Sarani, Kolkata
cap. GP Loader). 700059
5. Ashok Leyland 1 5.55 lac 5.55 lac Ex-stock G. M. Diesel
Model ALGP- (brand (inclusive within 7 Corpn. 100/1B,
680/TC-R4 of 151 new) of all days Asutosh
BHP at 1500 rpm. taxes. against Mukherjee
DG set of 125 Exclusive order. Road, Kolkata
KVA capacity acoustic) Adv. 700025
with full set
6. Laboratory Full 2.40 lac 2.45 lac 7 days
Geologists’
equipment set (in new (inclusive Syndicate (Pvt.)
concrete, Cement condi- of all Ltd. 137, B.R.B.
&Material Testing tion) taxes.) Basu Road,
as per IS & BS Kolkata 700001
7. ‘UTILITY’ 1 5.10 lac 5.15 lac 3-4 days Mohan Motors,
MODEL (in new (inclusive (against J.L.Nehru Road,
Mahindra Pick-up conditio of tax) advance) Kolkata 700072
Van n)
8. Pump with Motor 1 set 0.23 lac 0.23 Lc Hand Century
(1 H.P) for use (inclusiv delivery Engineering Co.
 Boring water e of tax) 21, G.C
@3000 Ltr. Per .Avenue,
day (approx.)
Add : Price escalation, taxes, duties, freight, insurance, erection and contingencies.

9.0 PROJECT IMPLEMENTATION SCHEDULE

: The proposed machine are
expected in the middle of
October ,2007 and started
installation required another 15
days to make successful
commissioning and commercial
production are considered from 1st
November,2007 and profitability
statement projected in the1st year
taking 8 months and 10 months in
the each succeeding 7 years.

9.1 SCHEDULE OF IMPLEMENTATION

DESCRIPTI0N PERIOD IN MONTHS

COMMENCEMENT COMPLETION

(1) Acquisition of Land & site development : Land already acquired on lease basis.

(2) Civil Works/Buildings : Site Development

October ‘07

(3) Wood work & Interiors : -do-

(4) Plant & machinery : August,2007(45 days from the date of order)
(a) Placement of Orders : August,2007
 (b) Delivery at site : September,07

(5) Arrangement of Power : By generator

(6) Arrangement of water : N.A. Arrangements will be done by within
31 days.

(7) Procurement of Raw Material : To be arranged in advance from

September,2007

(8) Recruitment / Training of Personnel : September, 2007

(9) Inauguration & Commercial Production : November, 2007

10.0 PRELIMINARY AND PRE-OPERATIVE EXPENSES :

(have already major portion incurred and balance have further to be incurred)
1. Company formation, Registration Expenses : Rs. 38,000.00
2. Rent of premises, telephone bills, electricity bills etc. : Rs. 34,000.00
3. Project report / feasibility studies charges : Rs. 33,000.00
4. Mortgage, stamp duty and legal expenses : Rs. 10,000.00
5. Salaries, travelling and office expenses : Rs. 65,000.00
6. Start up and commission expenses/ trial run. : Rs. 20,000.00
TOTAL COST : Rs. 2,00,000.00

10.1 ADMINISTRATIVE STAFF :

1. Works Manager : 1 No. @Rs.10,000/- Rs. 1,20,000.00

2. Purchase Officer 1 No. @Rs. 5,000/- Rs. 60,000.00
3. Sales Officer/ Marketing 4 Nos. @Rs. 4,000/- Rs. 1,92,000.00
Total cost (for one year)…. Rs. 3,72,000.00
==============
Therefore, COST OF ADMINISTRATIVE STAFF(for 8 months) Rs. 2,48,000.00
11. MARKET SURVEY & MARKETABILITY REPORT

11.1 End use of the product and : There are enough potentiality for setting up the
type of concerns, which use Ready Mix Concrete unit to support huge infra-
the product . structure growth that is required and is being
demanded by the population to develop the district
of 24 parganas and adjacent areas also into a major
participant in upgrading reformation net work of the
State Economy.

The demand for more Housing, Imported Road-

making System, continuously available of
electricity, water, better travel facilities, Railways
and Airport facilities etc. has effected a climate of
change for faster, more efficient better quality
construction systems. Ready Mix Concrete is one of
the ways in which these demands can be met. As the
systems has already emphasized by other major
cities of India including Kolkata, where there are
may giant player of RMC supplier continuously
cater the demand of housing as well as
infrastructure development sector. Right now, these
are also being explored in the district of 24 Parganas
where International Investors are also headed to
Bengal with their prestigious projects of major
investments in infrastructure development sector,
besides the existing and upcoming projects like
International City , various Parks, Malls, Market
Complexes, Factories etc., Government and Semi-
 Government Departments are also keen to use RMC
for their up-coming Projects to reach the highest
target level with lowest investment of time and
money. Thus, there are still abundance demands of
RMC which will exist over coming 5-7 years.

11.2 Present demand of the product : The expected growth of Cement Industry (which is
an indicator of industrial growth) at a rate of
between 18% and 20% as viewed in last couple of
years, is expected to be increased again after next
two years. In 24 Parganas and adjacent areas there
are still usages of site mix concretes or weigh
batching mix by major companies for their project
leaving a standing demand of almost 25% – 30% of
target subject to project time frame as stipulated in
tender or order. These sorts of demand can easily be
procured from local RMC unit in order to reduce
project cost as well as materials cost. We see these
trends as an opportunity to explain the concepts of
RMC and the practical observations we have made,
so far, to a group of Companies Promoter/
Developers, Government / Semi-Government
Department, Private Sector etc. who are ready to use
RMC (even they have already purchased from
outside 24 Parganas for their ongoing projects) to
cater these demand and to upgrade facilities for
using RMC , we are over confident to supply
maximum quantity RMC of out production as
mentioned hereinafter.

11.3 Number of factories : Aproximately 6(six) factories are working in the

already working in area and running RMC units in 24 Parganas District.
the State.
11.4 Expected increase in demand : Almost 70% to 85% increase in demand is expected
vis-à-vis expected increase in for upcoming projects as reflected in the Survey
production. Report of WBIDC and it is necessary for us to
adhere to meet the growing demand by producing
RMC @200 m3 per day or 4000 m3 per month in
future years.

11.5 Difference between the :Mainly Housing Projects based in Rajarhat areas using
expected demands & Supply RMC rapidly since last 3/4 years whereas the Projects
presently implementing in 24 Parganas are still going
by conventional concept of site mix concrete or
sometime they have to pay higher to procure RMC
through the Companies located in Rajarhat / Sonarpur
area. Thus, there are still huge demands of more than
50% to 65% among the existing user of RMC in
construction sector, which need to be identified and to
ensure supply at a random for fulfillment of their
demand in 24 Parganas District.

11.6 Expected production from the : 200 m3 per day or 4000 m3 per month in the years to
Proposed unit. Come. But financial data are prepared on most
conservative basis over here.

11.7. Existing Customers. : A) Mr. Partha De, M.D., M/s.New Look Intek
Nirman Pvt. Ltd. Being the Company is closely
associated with the Customers like, (a) Bridge & Roof
Co.(India) Ltd.., (b) ITD Cementation India Ltd., (c)
Tantia Construction Co. Ltd. Etc. in Public / Private
sector and Howrah Zilla Parishad, HMC, HIT, P.W.D,
WBSRDA etc. in Government / Semi-Government
 sector and also ATW Construction, Kolkata (for
Salem’s International Township Project), GAMUDA-
WCT (India) Pvt. Ltd. (for NHAI Road Projects) etc.
in respect of supply of Stonechips, sand etc. and
various Civil Construction Works since last 5 years.
These groups of Customers are having ongoing
projects over the next 4 to 7 years in Howrah, Haldia,
Dankuni, Rajarhat sector and they have initially
committed to use RMC at least 4000 m3 per month for
10(ten) months in a year leaving the 2 months as non-
operative due to rainy season.

11.7 Sale Target : The sale target are projected taking 10 months
working for a year but 8 months taken in the FIRST
Year done on most conservative basis.

11.8 RISK FACTORS : The various risk factors as perceived by the appraiser
are mentioned hereunder :
a) The
Comp
any
has
condu
cted
mark
et
surve
y in
the
dome
stic
mark
et to
 assess
the
dema
nd
suppl
y gap
of the
Produ
ct/
Servi
ces
but
no
contr
ol
over
the
mark
et
forces
.
b) The Company is yet to make arrangements for the
idle power for the project.
c) The price of the product/services is sensitive to
market variation in demand and supply which may
affect the Company’s performance.
d) Change of Government Policies and Regulations
may affect the operations of the Company.
e) The Company’s services/ products are prone to
competition from the new ones.
f) The Board is family controlled.
12.0 PROFITABILITY ASSUMPTION

12.1 RMC: Concept & its Prospects. : RMC or Ready Mix Concrete is the latest concept of
easing out the operation for a big concreting job.
Since the demand for such mixed concrete is
increasing at the rate of more than 75% per year, the
business of setting up RMC plants are upcoming very
rapidly. These trends of competition may hamper
hefty initial profits, however first players will
dominate the market without doubt. In the present
infrastructure-development scenario projected through
out the Howrah District, there are very prospective
future of setting up a RMC Plant considering the
increasing demand of existing and ensuing Projects of
Housing, Roads and Bridges, Food-Park, Foundry-
Park, Rubber-Park, Truck Terminal, Multi-processing
Zones, Township of Salem and other groups and also
various Government sponsored development Projects
through W.I.F.C. , Municipal Corporation, P.W.D.,
N.H.A.I, W.B.S.R.D.A etc.
12.2 COST OF CEMENT : Amount of cement for 1 m3 = 250 Kg.(approx.
average)
Cost of one Bag of cement (50Kg)= Rs. 240.00
No. of Bags required = 5(or 6/7/8/9)
(According to mix design)
TOTAL COST = (Rs.240X5) = Rs.1200.00

12.3 COST OF AGGREGATE : Total aggregate required = 30 ft./ 1m3

Cost of Aggregate = Rs.30.00 / ft.
TOTAL COST = (Rs.30x30) = Rs.900.00

12.4 COST OF SAND : Quantity of sand for 1 m3 of

concrete = 16 ft.
Cost of Sand per Ft. = Rs. 15.00
TOTAL COST = (Rs.15X16) = Rs.240.00

12.5 COST OF FLY ASH : Quantity of Fly Ash required = 50 Kg./ 1m3
Cost of Fly Ash per Kg. = Rs.0.80 / kg
TOTAL COST = (Rs.0.80x50) = Rs.40.00/1m3

12.6 COST OF WATER : Quantity of Water required = 400 Ltr../ 1m3

Cost of water = Rs.0.15 /zltr.
TOTAL COST = (Rs.400x0.15) = Rs.60.00/1m3

12.7 COST OF ADMIXTURE : Quantity of Admixture added in

1 m3 of concrete = 3 Ltr. ./ 1m3
Cost of Admixture = Rs.23.00/Ltr.
TOTAL COST = (Rs.23.00x3) = Rs.69.00/1m3
TOTAL COST OF RAW MATERIAL = Cost of cement + Cost of Sand + Cost of Aggregate
+Cost of Fly Ash+Cost of Water+Cost of Admixture

= (Rs.1200+900+240+750+40+60+69)
 = Rs,2,509.00
OPERATIONAL OVERHEADS

12.8 Manpower(Transit Mixture) : Cost of Operator = Rs.5000.00 / month

Cost of 1 Helper = Rs.1500.00 / month
Total concrete produced
In 1 month = Rs. 1000 m3 in / month.
Cost of Operator & Helper = Rs. 6500 x2 / 1000 m3.
Total cost of Operator & Helper = Rs. 13.00 / m3

12.9 Concrete Pump : Cost of Operator = Rs. 4000.00 / month

Amount of concrete pump= Rs.3000.00 / m3
Total cost of Operator /m3 = Rs. 1.33 / m3

12.10 Batching Plant : Cost of Operator = Rs.5000.00 / month

Amount of concrete produced
by Batching Plant in 1 month= Rs. 1000 m3 in / month.
Total cost of Operator/m3 = Rs. 5.00 / m3

12.11 DG Set(Generator) : Cost of operator/Electrician = Rs.5000.00/ month

Total cost of Operator/m3 = Rs. 5.00 / m3

12.12 Labour Cost : Cost of 10 Labour(2000/- each)= Rs.20000.00/ month

Total cost of Labour/m3 = Rs. 20.00 / m3
12.13 Maintenance Personnel : One Quality Control Personnel + One Plant In-charge + Two
Marketing Personnel + Two Maintenance In-charge
Cost of Maintenance Personnel = Rs. 30000.00/ month
Total cost of Maintenance = Rs. 30.00/m3
TOTAL MANPOWER COST: Rs. 13.00+1.33+5.00+5.00+20.00+30.00 = Rs.74.33/m3
DIESEL CONSUMPTION

12.14 Transit Mixer : Diesel consumption = 1 ltr. / 2 Km (assuming a lead of 20Km)

Total distance moved in one round = 40 Km
Diesel consumed for delivering 6 m3 = 20 Ltr.
Diesel consumed by chasis = 3.33 ltr.m3

Diesel consumed by Transit Mixer for 6 m3 delivery

(5 ltr. / 6m3) = Rs. 0.83

12.15 Concrete pump : Diesel consumed in / hr. = 6 ltr.

Amount of concrete delivered = 25 m3
Diesel consumed / m3 = 0.24 ltr.

12.16 DG Set(Generator): Diesel consumed in / hr. = 17 ltr.

Diesel consumed / m3 = 17 ltr./ 25 = 0.68 ltr.

TOTAL DIESEL CONSUMED / M3 : (3.33+0.83+0.24+0.68) = 5.08 Ltr.

TOTAL COST OF DIESEL CONSUMED /M3 = (5.08 X Rs.32.87) = Rs. 166.97 / m3

TOTAL OPERATION OVERHEADS : (RS.74.33 + Rs166.97) = Rs.241.30

12.17 MAINTENANCE CHARGES : Maintenance – Transit Mixer : Rs.15.00/m3

Concrete Pump : Rs. 5.00/m3
Batching Plant : Rs. 5.00/m3

TOTAL MAINTENANCE CHARGES : Rs.25.00

 NEWLOOK INTEK NIRMAN PVT. LTD.

NEWLOOK INTEK NIRMAN PVT. LTD.

DEBT SERVICE COVERAGE RATIO
ANNEXURE : D
(Rs. IN LAKH

D S C R as computed below illustrates firm’s ability to pay regularly installments towards

term loan along with interest due thereon at maturity dates.

DESCRIPTION YEARS
1 2 3 4 5

TOTAL FUND AVAILABLE

Net Profit after Tax 6.00 6.78 12.05 14.08 16.63

Add: Depreciation 18.00 18.00 18.00 18.00 18.00

W/o. 0.20 0.20 0.20 0.20 0.20

oan 7.03 7.50 5.62 3.75 1.87

31.23 32.48 35.87 36.03 36.70

TOTAL FINANCIAL OBLIGATION

Instalment payable 15.00 15.00 15.00 15.00 15.00

Interest on term loan 7.03 7.50 5.62 3.75 1.87

22.03 22.50 20.62 18.75
16.87

1.42 1.44 1.74 1.92 2.18

Total funds over the period

Total financial obligation to Bank

= 8.70 = 1.74
5
 CURRENT RATIO

A) CURRENT ASSETS :

29.37 32.18 33.78 35.58 37.35

30.07 26.25 27.56 28.94 30.38

0.21 1.32 1.81 1.49 1.37

- 2.00 3.10 4.00 5.00

1.00 3.60 10.16 9.64 10.78

60.65 65.35 76.41 79.65 84.88

(B) CURRENT LIABILITIES

Sundry Creditors for Goods 5.27 4.60 4.84 5.08 5.34

Sundry creditors for Exp. 0.18 0.16 0.17 0.17 0.18

Provision for Tax - 1.91 3.37 4.09 5.39

Bank Borrowings 25.00 25.00 25.00 25.00 25.00

T/L repayable within year 15.00 15.00 15.00 15.00 15.00

(B) 45.45 46.67 48.38 49.34 50.91

Current Ratio 1.33 1.40 1.58 1.61 1.67

AVERAGE CURRENT RATIO --------------------1.52-------------------------

 NEWLOOK INTEK NIRMAN PVT. LTD.
BREAK EVEN ANALYSIS
ANNEXURE : E
(Rs. IN LAKH

A. REVENUE FROM RMC PER CBM (m3) 3400.00

-----------
3400.00

B. VARIABLE COST PER CBM(M3)

Input material 2509.00

Repairs & maintenance 25.00
Labour 74.33
Diesel consumption 166.97
Power 11.25

2786.55
______________

CONTRIBUTION PER CBM (m3) (A-B) 613.00

PROFIT/VARIATION RATIO = Contribution x 100

Sales

= 613.00 x 100
3400.00

= 18.02%

FIXED COST = Rs. 48,92,000.00 (1st year)

BEP Sales = F.C

Contribution per unit

= Rs. 48,92,000.00
613.00

= Rs. 7975 / m3 (units)

Margin of Safety = 25 m3