PROJECT REPORT

FOR
1000 MT
COLD STORAGE

Details of Project Cost and Means of finance

Particulars Amount
(Rs. In lacs)
1 Land & Land Development 5.00
.
2 Building : 59.25
. (a) Civil Work - 35.25

(b) Steel Racking System – 24.00

3 Plant & Machinery : 182.26
. Refrigeration System
4 Electrical Installation 28.49
. (a) DG Set 450 KVA – 1 No. – 27.00
(b) Electrical Cables & Control Panel - 1.49

Total Project Cost 275.00

MEANS OF FINANCE:

1. Promoters Contribution 25.00

2. Grant Subsidy From APICOL 50.00
3. Term Loan from Commercial Bank 200.00
TOTAL 275.00

CIVIL CONSTRUCTION :

The civil construction area of the cold storage will be about 9300 sq.ft.
The height of the Cold Storage will be 18 ft. and the cold storage will
also have proper walls for insulation and will have 4 compartments with
one Ante room. The Ante room will be used for storing material before
it goes to the cold storage. As per estimation, the civil construction
cost comes to Rs.35.25 lacs.

PLANT & MACHINARIES :

PEB Structure, Puf Panels & Refrigeration systems will be supplied by
a reputed supplier of cold storage plants, and the cost of the same
comes to Rs.182.26 lacs.

ELECTRICAL INSTALLATION

The Company is already having a dedicated transformer with a

connected load of 870 KW drawn from 33 KVA line and it has surplus
capacity to accommodate the power requirement of this plant. However,
The Company will be going for a D.G. Set as a stand-by to meet it’s
requirement in case of any power failure as the cold storage cannot be
left without providing continuous power supply.

MAN POWER

The total manpower requirement for this project comprises of

managerial, supervisory and other professional staff as below.

Factory Manager 1 No.

Storage Executive 1 No.
Supervisors 4 Nos.
Maintenance 1 No.
Mechanic
Storage Boys 30Nos.

SALES & PROFIT :

The company has projected to achieve a sales turnover of Rs.200.00

lacs & also projected a profit of Rs.27.00 lacs during the first year
operation.

PROFITABILITY STATEMENT FOR 6 YEARS

PARTICULARS 1st yr 2nd yr 3rd yr 4th yr 5th yr 6th yr

INCOME

STORING CHARGES 177.94 186.83 196.18 196.18 196.18 196.18

RECEIVED

TOTAL INCOME 177.94 186.83 196.18 196.18 196.18 196.18

EXPENSES

POWER & FUEL 12.00 13.20 14.52 14.52 14.52 14.52

OTHER 3.60 3.96 4.36 4.36 4.36 4.36

MANUFACTURING
EXP.
ADMINISTRATIVE 1.20 1.32 1.45 1.45 1.45 1.45
EXP.

WAGES & SALARIES 71.62 78.78 86.66 86.66 86.66 86.66

INTEREST (TERM 26.25 21.59 16.92 12.26 7.59 2.93

LOAN)
DEPRECIATION 22.84 22.84 22.84 22.84 22.84 22.84

137.51 141.69 146.75 142.08 137.42 132.75

TOTAL
PROFIT BEFORE 40.43 45.15 49.43 54.09 58.76 63.42
TAX

TAX 13.34 14.90 16.31 17.85 19.39 20.93

NET PROFIT AFTER 27.09 30.25 33.12 36.24 39.37 42.49

TAX

CASH GENERATION 49.93 53.09 55.96 59.08 62.21 65.33

BREAK EVEN POINT

TOTAL FIXED COST 120.71 123.21 126.42 121.76 117.09 112.42

TOTAL 161.14 168.35 175.85 175.85 175.85 175.85

CONTRIBUTION
BREAK EVEN POINT 74.91% 73.18% 71.89% 69.24% 66.59% 63.93%
(%)

DEBT SERVICE COVERAGE RATIO (D.S.C.R.)

PARTICULARS 1st 2nd 3rd 4th 5th 6th yr
yr yr yr yr yr

PROFIT AFTER TAX 27.09 30.25 33.12 36.24 39.37 42.49

DEPCRICIATION 22.84 22.84 22.84 22.84 22.84 22.84

INTEREST ON TERM LOAN 26.25 21.59 16.92 12.26 7.59 2.93

TOTAL 76.18 74.67 72.88 71.34 69.80 68.26

INTEREST ON TERM LOAN 26.25 21.59 16.92 12.26 7.59 2.93

REPAYMENT OF TERM LOAN 33.32 33.32 33.32 33.32 33.32 33.40

TOTAL 59.57 54.91 50.24 45.58 40.91 36.33

D.S.C.R. 1.28 1.36 1.45 1.57 1.71 1.88

AVERAGE D.S.C.R. 1.54

CASH FLOW STATEMENT

1st 2nd 3rd 4th 5th yr 6th yr

yr yr yr yr

A. SOURCE OF
FUNDS
1. CASH ACCRUALS 66.68 66.73 66.35 66.35 66.35 66.35
(PBT + INT.)

2. INCREASE IN 25.00
SHARE CAPITAL

3. INCREASE IN
UNSECURED LOAN

4. DEPRICIATION 22.84 22.84 22.84 22.84 22.84 22.84

5. INCREASE IN 200.00
TERM LOAN
6. INCREASE IN 50.00
SUBSIDY
7. INCREASE IN
BANK BORROWING

8. INCREASE IN
CURRENT LIABILITIES
9. DECREASE IN NON 0.00 0.00 0.00 0.00 0.00 0.00
CURRENT ASSETS
TOTAL 275.00 89.52 89.57 89.19 89.19 89.19 89.19
SOURCE (A)

B. DEPOSITION OF
FUNDS
1. PREL. & PREOP.
EXPENSES

2. INCREASE IN 275.00
CAPITAL EXPEN.

3. INCREASE IN
CURRENT ASSET

4. DECREASE IN 33.32 33.32 33.32 33.32 33.32 33.40

TERM LOAN
5. INCREASE IN NON-
CURRENT ASSET

6. INCREASE IN
INVESTMENTS

7. PAYMENT OF 26.25 21.59 16.92 12.26 7.59 2.93

INTEREST
8. PAYMENT OF TAX 13.34 14.90 16.31 17.85 19.39 20.93

TOTAL 275.00 72.91 69.80 66.55 63.43 60.30 57.26

UTILISATION (B)

C. OPENING 0.00 16.61 36.37 59.01 84.77 113.66

BALANCE
D. NET SURPLUS 16.61 19.77 22.64 25.76 28.89 31.93

E. CLOSING 16.61 36.37 59.01 84.77 113.66 145.59

BALANCE

PROJECTED BALANCE SHEET

1st yr 2nd yr 3rd yr 4th yr 5th yr 6th yr

LIABILITIES

Share Holders
Fund :
Share Capital
25.00 25.00 25.00 25.00 25.00 25.00

Subsidy
50.00 50.00 50.00 50.00 50.00 50.00
Profit & loss 27.09 57.34 90.45 126.69 166.06 208.56
account
Loan Funds

Secured Loan
200.00 166.68 133.36 100.04 66.72 33.40

Current
Liabilitis

Outstandings 0.10 0.10 0.10 0.10 0.10 0.10

payable
Provn. For I.Tax 13.34 14.90 16.31 17.85 19.39 20.93

TOTAL
315.53 314.01 315.22 319.69 327.27 337.99
ASSETS

Fixed Asset

Gross Block
275.00 275.00 275.00 275.00 275.00 275.00

Less:
Depreciation 22.84 45.68 68.52 91.36 114.19 137.03

Net Block
252.16 229.32 206.48 183.64 160.81 137.97

Current
Assets :
Cash & bank 16.61 36.37 59.01 84.77 113.66 145.59
balances
Closing Stock

Sundry debtors 39.38 39.73 40.09 40.09 40.09 40.17

Advance Tax 7.38 8.59 9.64 11.18 12.72 14.26

Other Assets

Miscellaneous
expenditure

TOTAL
315.53 314.02 315.22 319.68 327.27 337.99
ESTIMATION OF REVENUE :
Rs. in lacs

A STORING 177.94
: CHARGES :
750 MT @ Rs.65/-
per MT / per day
(Operation - 365 days
with maximum 75%
utilization)

TOTAL 177.94

ESTIMATION OF EXPENSES :
Rs. in lacs

A POWER & FUEL : 12.00

:
@ Rs.1,00,000/- per
month

B SALARY & WAGES 71.62

: (as per Annexure)

TOTAL 83.62

MAN POWER & SALARY

EACH TOTAL TOTAL

SALARY
PER PER MONTH (12
 MONTH MONTHS)

1 Factory Manager 1 no. 25000.00 25000.00 300000.00

2 Store Executive 1 no. 20000.00 20000.00 240000.00
3 Supervisors 4 nos. 15000.00 60000.00 720000.00
4 Maintenance 1 nos. 12500.00 12500.00 150000.00
Mechanic
5 Store Boys 30 nos. 12000.00 360000.00 4320000.00
TOTAL 477500.00 5730000.00

ADD : 25 % 1432500.00
INFRINGMENT
BENEFITS

7162500.00
TOTAL

Say 7162000.00

DEPRECIATION SHEDULE (SLM)

PARTICULARS ACQUISITION % OF DEPRE-

COST DEP. CIATION

LAND 5.00
BUILDING 59.25 3.34 1.98
PLANT & MACHINERY 182.26 10.34 18.85
ELECTRICAL INSTALLATION 28.49 7.07 2.01

TOTAL 275.00 22.84

REPAYMENT SCHEDULE OF TERM LOAN

1st yr 2nd yr 3rd yr 4th 5th 6th
yr yr yr

TERM LOAN from

Bank
1ST QTR. - Ending 8.33 8.33 8.33 8.33 8.33 8.33
30th APR.
2ND QTR. - Ending 8.33 8.33 8.33 8.33 8.33 8.33
30th SEP.
3RD QTR. - Ending 8.33 8.33 8.33 8.33 8.33 8.37
31st DEC.
4TH QTR. - Ending 8.33 8.33 8.33 8.33 8.33 8.37
31st MAR.
BALANCE 200.0 166.68 133.3 100.04 66.72 33.40 0.00
0 6

TOTAL YRL. 0.00 33.32 33.32 33.32 33.32 33.32 33.40

REPAYMENT

REPAYMENT SCHEDULE OF INTEREST ON TERM LOAN

1st 2nd 3rd 4th 5th 6th yr

yr yr yr yr yr
14.00%

1ST QTR. - Ending 30th APR. 7.00 5.83 4.67 3.50 2.34 1.17

2ND QTR. - Ending 30th SEP. 6.71 5.54 4.38 3.21 2.04 0.88

3RD QTR. - Ending 31st DEC. 6.42 5.25 4.08 2.92 1.75 0.59

4TH QTR. - Ending 31st MAR. 6.13 4.96 3.79 2.63 1.46 0.29

TOTAL 26.25 21.59 16.92 12.26 7.59 2.93

TOTAL YRL. INTEREST 26.25 21.59 16.92 12.26 7.59 2.93