ECONOMICS OF THE PROJECT

1 Land
Own 40 cents
Own

2 Building
Own 100M2
Rs. 470,000.00
3 Plant & Machinery

1 Hydraulically operated concrete block Rs. 165,000.00

making machine with electricals
2 Cavity block moulds 3 sets Rs. 45,000.00
3 wheel barrows 3 Nos. Rs. 18,000.00
4 Concrete mixer with 3 HP motor with Rs. 92,000.00
stand type
5 Transportatation tax etc Rs. 25,000.00
6 Pumpset & Water tank Rs. 30,000.00
7 Electrification & fittings Rs. 50,000.00
Total Rs. 425,000.00

4 Raw Material Required per month

1 Cement 500 bags Rs. 170,000.00

2 Granite Chips 6000 cft Rs. 150,000.00
3 Granite Powder 3500 cft Rs. 120,000.00

TOTAL Rs. 440,000.00

5 Staff & Labour per month

1 Manager 1 No Rs. 10,000.00

2 Skilled workers 1 No Rs. 10,000.00
3 Helpers 4 Nos Rs. 30,000.00

TOTAL Rs. 50,000.00

6 Other Expenese per month

1 Electricity Charges Rs. 2,000.00

2 Travelling Expenses Rs. 1,000.00
3 Postage & Stationery Rs. 1,000.00
4 Transportation Rs. 8,000.00
5 Repair & Maintanance Rs. 2,000.00
6 Other Unfore seen expenses Rs. 1,000.00

Total Rs. 15,000.00

7 Working Capital

1 Stock of Raw Materials 10 Days Rs. 176,000.00

2 Raw Materials in Process 10 Days Rs. 176,000.00
3 Stock of Finished Goods 3 Days Rs. 52,800.00
4 Credit Sale 2 Days Rs. 35,200.00
5 One Month working expenses Rs. 65,000.00

Total Rs. 505,000.00

Say Rs. 500,000.00

8 TOTAL CAPITAL INVESTMENTS

1 Land Own
2 Building Rs. 470,000.00
3 Plant & Machinery Rs. 425,000.00
4 Working Capital Rs. 500,000.00
5 Pre-operative expenses Rs. 25,000.00

TOTAL Rs. 1,420,000.00

9 SOURCE OF FINANCE

1 Promoters Contribution Rs. 311,250.00

2 Term loan for building Rs. 352,500.00
3 Term loan for Plant & Machinery Rs. 318,750.00
4 Working Capital Loan Rs. 375,000.00
5 Assistance under ESS Rs. 62,500.00
 TOTAL Rs. 1,420,000.00

10 Cost of Production per month

1 Raw materials Rs. 440,000.00

2 Staff & Labour Rs. 50,000.00
3 Other Expences Rs. 15,000.00
4 Interest on Term Loan Rs. 8,390.63
5 Interest on Working Capital Loan Rs. 5,468.75
6 Depreciation Rs. 7,270.83
7 Sales Promotion Expenses Rs. 30,550.00

TOTAL Rs. 556,680.21

11 Sales Revenue Per month

By Sale of Cement concrete blocks

1 12" x 8" x 8" 4000 Nos @ Rs. 34 Rs. 128,000.00
2 16" x 8" x 4" 10500 Nos @ Rs. 21 Rs. 220,500.00
3 12" x 8" x 6" 11000 Nos @ Rs.25 Rs. 262,500.00

Total Rs. 611,000.00

Provision for damages & Wastatges Rs. 12,220.00

Total Sales Rs. 598,780.00

12 Profit Per month Rs. 42,099.79

13 Profit per year Rs. 505,197.50

14 Provision for Taxes Rs. 90,039.50

15 Net Profit Rs. 415,158.00

16 Return on Investment 29%

17 Return on Sales 6%

18 Debt Service Coverage Ratio 2.57

(for a repayment period of 5 years)
Rs. 895,000.00

Rs. 1.30

Rs. 671,250.00
Rs. 5,280,000.00
Rs. 600,000.00
Rs. 180,000.00
Rs. 100,687.50
Rs. 65,625.00
Rs. 87,250.00
Rs. 366,600.00
Rs. -
Rs. 6,680,162.50
Rs. -
Rs. -
Rs. -
Rs. -
Rs. 1,536,000.00
Rs. 2,646,000.00
Rs. 3,150,000.00
Rs. -
Rs. 7,332,000.00
Rs. -
Rs. 146,640.00
Rs. -
Rs. 7,185,360.00
Rs. -
Rs. 505,197.50
Rs. -
Rs. 6,062,370.00
 REPAYMENT CHART OF TERM LOAN
Lakhs

Year 1 2 3 4 5

Opening balance 6.71 5.37 4.45 3.52 2.60

Repayment @15% int. 1.3425 0.924 0.924 0.924 0.924

Closing Balance 5.37 4.45 3.52 2.60 1.67

DEPRECIATION OF BUILDING

Lakhs
Year 1 2 3 4 5
Opening balance 4.70 3.80 3.61 3.43 3.26
Depreciation @ 5% 0.24 0.19 0.18 0.17 0.16
Closing Balance 3.80 3.61 3.43 3.26 3.10

DEPRECIATION OF PLANT & MACHINERY

Lakhs
Year 1 2 3 4 5
Opening balance 4.25 3.61 3.07 2.61 2.22
Depreciation @15% 0.64 0.54 0.46 0.39 0.33
Closing Balance 3.61 3.07 2.61 2.22 1.89

PROJECTED PROFITABILITY STATEMENT

Sales Revenue
Year 1 2 3 4 5
Installed Capacity 122.20 122.20 122.20 122.20 122.20
Capacity Utilisation 0.60 0.65 0.70 0.70 0.70
Production 73.32 79.43 85.54 85.54 85.54
Pro Damages 1.47 1.59 1.71 1.71 1.71
Total Sales 71.85 77.84 83.83 83.83 83.83
Cost of Production
Year 1 2 3 4 5

Raw materials 52.80 57.20 61.60 61.60 61.60

Staff & Labour 6.00 6.50 7.00 7.00 7.00

Other Expences 1.80 1.95 2.10 2.10 2.10

Interest on Term Loan 1.01 0.94 0.78 0.62 0.45

Interest on Working Capital

0.66 0.57 0.57 0.57 0.57
Loan

Depreciation of Building 0.24 0.19 0.18 0.17 0.16

Depreciation of Plant &

0.64 0.54 0.46 0.39 0.33
Machinery

Sales Promotion Expenses 3.67 3.97 4.28 4.28 4.28

Total Cost of production 66.80 71.86 76.97 76.73 76.50

Profit per year 5.05 5.98 6.86 7.10 7.33

Provision for taxes 0.90 1.62 1.89 1.96 2.03

Net profit 4.15 4.35 4.97 5.14 5.30

Return on investments 29.2 30.7 35.0 36.2 37.3

Return on sales 5.7 5.5 5.8 6.0 6.2

DSCR 2.57 3.23 3.76 4.10 4.54

 Break Even Analysis at a normal year of operation at 70% Capacity utilisation

A Fixed & Semivariable Costs

1 Staff & Labour 7.00

2 50% of Other expenses 1.05
3 Interest on Term Loan 0.78
4 Depreciation 0.64

Total 9.47

B Variable Costs

1 Raw Materials 61.60

2 50% of Other expenses 1.05
3 Interest of Working Capital Loan 0.57
4 Sales Promotion Expenses 4.28

Total 67.50

C Contribution 18.04

D Break Even Point

1 In terms of Capacity Utilisation 37 %

2 In terms of Production/ Sales Rs.44.89

 PROJECTED BALANCE SHEET

LIABILITIES

Lakhs

Year Const. Period 1 2 3 4 5

Capital 7.568 6.720 8.143 9.149 7.259 7.824
Reserve & surplus 0.000 5.024 5.087 5.615 5.705 5.798
Term Loan from Bank 6.713 5.370 4.446 3.522 2.598 1.674
Working Capital Loan 0.000 3.850 3.850 3.850 3.850 3.850

TOTAL 14.280 17.114 17.676 18.286 15.562 15.296

ASSETS

Lakhs
Year Const period 1 2 3 4 5
Pre operative expenses 0.250 0.250 0.250 0.250 0.250 0.250
Fixed assets 8.950 7.413 6.681 6.040 5.477 4.981
Stock in trade 4.400 4.400 4.767 5.133 2.733 2.733
Cash in hand/ bank 0.680 5.052 5.978 6.863 7.103 7.332

TOTAL 14.280 17.114 17.676 18.286 15.562 15.296

 Cash - Flow Statement
Lakhs
Const. Period Ist Year IInd year IIIrd year IVth year Vth year
A-Source of Funds
Net profit before taxes with
1 interest added back Rs. - Rs. 5.81 Rs. 5.86 Rs. 6.32 Rs. 6.33 Rs. 6.33
2 Increase in share for pre-op expense Rs. 0.25 Rs. - Rs. - Rs. - Rs. - Rs. -
3 Increase in share capital Rs. 2.94 Rs. 1.09 Rs. 1.09 Rs. - Rs. - Rs. -
4 Increase in Term Loan Rs. 6.71 Rs. - Rs. - Rs. - Rs. - Rs. -
5 Assistance under ESS Rs. 0.63 Rs. - Rs. - Rs. - Rs. - Rs. -
6 Increase in Working Capital Loan Rs. 3.75 Rs. - Rs. - Rs. - Rs. - Rs. -
7 Depreciation Rs. - Rs. 0.87 Rs. 0.73 Rs. 0.64 Rs. 0.56 Rs. 0.50

TOTAL Rs. 14.28 Rs. 7.77 Rs. 7.68 Rs. 6.96 Rs. 6.89 Rs. 6.82

B - Deposition of Funds

1 Preliminary and pre oper. expenses Rs. 0.25 Rs. - Rs. - Rs. - Rs. - Rs. -
2 Increase in Capital Expenditure Rs. 8.95 Rs. - Rs. - Rs. - Rs. - Rs. -
3 Increase in current Assets Rs. 4.40 Rs. 0.37 Rs. 0.37 Rs. - Rs. - Rs. -
4 Decrease in Term Loan Rs. - Rs. 1.34 Rs. 0.92 Rs. 0.92 Rs. 0.92 Rs. 0.92
5 Working Capital Loan Rs. - Rs. - Rs. - Rs. - Rs. - Rs. -
6 Taxation Rs. - Rs. 0.90 Rs. 1.62 Rs. 1.89 Rs. 1.96 Rs. 2.03
7 Drawings Rs. - Rs. 0.60 Rs. 0.60 Rs. 0.60 Rs. 0.60 Rs. 0.60
TOTAL Rs. 13.60 Rs. 3.21 Rs. 3.51 Rs. 3.41 Rs. 3.48 Rs. 3.55

Accumulation of Net Profit

C- opening balance Rs. - Rs. 0.68 Rs. 5.24 Rs. 9.41 Rs. 12.96 Rs. 16.37
D - net profit Rs. 0.68 Rs. 4.56 Rs. 4.17 Rs. 3.55 Rs. 3.41 Rs. 3.27
E- Closing Blance Rs. 0.68 Rs. 5.24 Rs. 9.41 Rs. 12.96 Rs. 16.37 Rs. 19.64

Shiby Mathew
 PROJECT AT A GLANCE

1 Name of the Unit A.S.HOLLOW BRICKS

2 Location THAZHATHUMON, MANAKKALA

3 Organisation Proprietory

4 Activity Cement Concrete Hollow Bricks

5 Project Cost
1. Land Own
2. Building Rs. 470,000.00
3. Plant & Machinery Rs. 425,000.00
4. Working Capital Rs. 500,000.00
5. Pre operative Expenses Rs. 25,000.00

TOTAL Rs. 1,420,000.00

6 Means of Finance
1. Promoter’s Contribution Rs. 311,250.00
2. Term Loan from Bank Rs. 671,250.00
3. Working Capital Loan Rs. 375,000.00
Assistance under ESS Rs. 62,500.00

TOTAL Rs. 1,420,000.00

7 Power 10 H.P

8 Employment 6 Nos.

9 Marketing Area Pathanamthitta & Kollam District

10 Installed Capacity 122.20 Lakhs

11 Average Production Rs. 611,000.00 per month

12 Number of shifts One

13 Expected Capacity Utilisation 60.00%

14 DSCR 2.57

15 Return on investment 29.24% First year

16 Break Even Point 37%