DETAILED PROJECT REPORT FOR

M/S. Ansh Agro Seed

(Unit of Seed Processing)

Bus.Office:
Address
Mohanpur
Bastoi-Hathras
Pin Code-204215

This project has been designed to establish a Trading Concern at Hathras. It is a Proprietorship concern owned by Sadhna Devi.
The proprietor hail from business family and is having experience in this line of business.
Now it is proposed to start operation with financial assistance from a suitable commercial bank.
Hence this project Report is presented.

Prepared by:
CMA Ashiwani Maheshwari
Cost Accountant
Near Ramlila Mandir
Sahawar Gate
Kasganj-207123
Mobile : 09808570987
e-mail : [email protected]
 M/S. Ansh Agro Seed

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
M/S. Ansh Agro Seed
CHAPTER NO. 1
PROJECT AT GLANCE :
1 Name : M/S. Ansh Agro Seed
2 Address : Reg.Office:
Address
Mohanpur
Bastoi-Hathras

3 Nature of Business : Trading

4 Constitution : Proprietorship
Proprietor :

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

Particulars Total
Operational Cost 15.74
Furniture & Fittings 1.00
Office Equipemnts 1.00
Deposits 2.00
Interest during the impl. Period 0.26
Total 20.00

Means of Finance :
Particulars Total
Proprietor Contribution 18.00
Term Loan from Bank / Institution 2.00

Total 20.00

6 Debt Equity Ratio : 0.11 :1

7 Debt Coverage Ratio : 5.11
8 Gross Profit Ratio : 7.26 First Year Operation.
9 Net Profit Ratio : 5.22 First Year Operation.
10 Employment Potential : 4
11 Return on Investment : 21.63 %

Page 3 of 11
M/S. Ansh Agro Seed
Mohanpur, Hathras

(A Seed Processing Unit)

STATEMENT NO. 1

COST OF THE PROJECT AND MEANS OF FINANCE:

The project cost has been estimated at Rs. 20Lakhs

Brief details of the project cost is given below

Cost of the project : (Rs. In Lakhs)

Particulars Total
Operational Cost 15.74
Furniture & Fittings 1.00
Office Equipemnts 1.00
Deposits 2.00
Interest during the impl. Period 0.26
Total 20.00

Means of Finance :
Particulars Total
Promoters Contribution 18.00
Term Loan from Bank / Institution 2.00
Total 20.00
M/S. Ansh Agro Seed
STATEMENT NO.2
PROJECTIONS AND PROFITABILITY STATEMENT In Lakhs
Operating years
PARTICULARS
0 1 2 3 4
A.INCOME:
Income from Trading Activities 50.00 60.00 72.00 86.40 103.68

(The Quanities Sold are expected to increase by 20% every

year)
50.00 60.00 72.00 86.40 103.68
B. EXPENSES:
Material Purchase Cost and Related cost
(After Adjusting closing stock) 45.00 54.00 64.80 77.76 93.31
Salary 1.50 1.58 1.65 1.74 1.82
Power Charges 0.12 0.13 0.13 0.14 0.15
Depreciation 0.25 0.22 0.19 0.17 0.14
Cost of Operations 46.87 55.92 66.78 79.80 95.43

C. Gross Profit [ A - B ] 3.13 4.08 5.22 6.60 8.25

D. Interest: on term loan 0.26 0.21 0.15 0.08 -

0.26 0.21 0.15 0.08 -

E. Selling & Admin. Exp. 1.20 1.26 1.32 1.39 1.46

F. Profit before Tax[ C - (D+E) ] 1.67 2.61 3.76 5.13 6.80

G. Income Tax - 0.13 0.19 0.64 1.02

H. Profit after Tax ( F-G ) 1.67 2.48 3.57 4.49 5.78

I. Depreciation added back 0.25 0.22 0.19 0.17 0.14

J. Cash Accruals ( H + I ) 1.92 2.70 3.76 4.66 5.92

L. Repayment of Term Loan 0.41 0.47 0.53 0.59 -

M. Net Cash A'ble (J - K)) 1.51 2.23 3.23 4.07 5.92

M/S. Ansh Agro Seed
STATEMENT No.3

CASH - FLOW STATEMENT :

(A Seed Processing Unit)
Operating Years
PARTICULARS
0 1 2 3 4
A. Source of Funds :
Profit after Tax 1.67 2.48 3.57 4.49 5.78
Depreciation 0.25 0.22 0.19 0.17 0.14
Term Loan from Bank 2.00
Promoters Contribution 18.00 - - - -

TOTAL OF ' A ' 21.92 2.70 3.76 4.66 5.92

B. Application of Funds :
Furniture & Fittings 1.00 - - - -
Office Equipts 1.00
Deposits 2.00
Repayment of loan 0.41 0.47 0.53 0.59 -

TOTAL OF ' B ' 4.41 0.47 0.53 0.59 -

C. Opening Balance - 17.51 19.74 22.97 27.04

D. Net surplus ( A - B ) 17.51 2.23 3.23 4.07 5.92

E. Closing Balance 17.51 19.74 22.97 27.04 32.96

M/S. Ansh Agro Seed
STATEMENT No.4

BALANCE SHEET
(A Seed Processing Unit)
Operating Years
PARTICULARS
0 1 2 3 4

A. LIABILITIES :
Capital Account 18.00 18.00 18.00 18.00 18.00
Reserves & Surplus 1.67 4.15 7.72 12.21 17.99
Secured Loan 1.59 1.12 0.59 - -

TOTAL 21.26 23.27 26.31 30.21 35.99

B. ASSETS :
Fixed Assets 1.75 1.53 1.34 1.18 1.03
Current Assets
Cash & Bank 17.51 19.74 22.97 27.04 32.96
Deposits 2.00 2.00 2.00 2.00 2.00

TOTAL 21.26 23.27 26.31 30.21 35.99

M/S. Ansh Agro Seed
Mohanpur, Bastoi- Hathras

(A Seed Processing Unit)

ANNEXURE NO.1

DEPRECIATION SCHEDULE: (A Seed Processing Unit)

WDV at the year end
PARTICULARS
0 1 2 3 4
1. Furniture & Fittings 1.00 0.90 0.81 0.73 0.66
Depreciation @ 10% 0.10 0.09 0.08 0.07 0.07
WDV 0.90 0.81 0.73 0.66 0.59

4. Office Equipts 1.00 0.85 0.72 0.61 0.52

Depreciation @ 15% 0.15 0.13 0.11 0.09 0.08
WDV 0.85 0.72 0.61 0.52 0.44

Total Assets
[1+2+3+4] 1.75 1.53 1.34 1.18 1.03

Total Depreciation
[1+2+3+4] 0.25 0.22 0.19 0.17 0.14
M/S. Ansh Agro Seed
ANNEXURE NO.2

BREAK-EVEN ANALYSIS
Years
(A Seed Processing Unit)
0 1 2 3 4
A. Receipts 50.00 60.00 72.00 86.40 103.68

B. Variable cost: 46.87 55.92 66.78 79.80 95.43

D. Fixed costs:
Depreciation 0.25 0.22 0.19 0.17 0.14
Interest on Term Loan 0.26 0.21 0.15 0.08 0.00
Administration Expenses 1.20 1.26 1.32 1.39 1.46
1.71 1.68 1.66 1.63 1.60

E. Contribution [ B - C ] 3.13 4.08 5.22 6.60 8.25

F. P.V.Ratio [ E/B x 100 ] 6.26 6.80 7.26 7.64 7.96

G. Break - even [ Value ]

[ D / F x 100 ] 27.32 24.76 22.85 21.35 20.13

H. Cash Break Even 23.32 21.56 20.24 19.19 18.32

[ Without Depreciation]
M/S. Ansh Agro Seed
ANNEXURE NO.3

INTEREST SCHEDULE : (Rs. in Lakhs)

(A Seed Processing Unit) QUARTERS OPENING LOAN CLOSING INTEREST INTEREST
BALANCE REPAYMENT BALANCE PER ANNUM P.A.
0 1 2.00 - 2.00 0.00
2 2.00 - 2.00 0.00
3 2.00 - 2.00 0.00
4 2.00 0.41 1.59 0.26 0.26
I 1 1.59 - 1.59 0.00
2 1.59 - 1.59 0.00
3 1.59 - 1.59 0.00
4 1.59 0.47 1.12 0.21 0.21
II 1 1.12 - 1.12 0.00
2 1.12 - 1.12 0.00
3 1.12 - 1.12 0.00
4 1.12 0.53 0.59 0.15 0.15
III 1 0.59 - 0.59 0.00
2 0.59 - 0.59 0.00
3 0.59 - 0.59 0.00
4 0.59 0.59 - 0.08 0.08

NOTE : Interest on Term Loan is calculated at 13% per annum liquidated in

4 year
M/S. Ansh Agro Seed
ANNEXURE NO.4

DEBT SERVICE COVERAGE RATIO : Amt. in Lakh

Operating Years
(A Seed Processing Unit)
0 1 2 3 4
A. SOURCES :
Profit after tax 1.67 2.48 3.57 4.49 5.78
Depreciation 0.25 0.22 0.19 0.17 0.14
Interest on term loan 0.26 0.21 0.15 0.08 -
TOTAL OF ' A ' 2.18 2.91 3.90 4.73 5.92

B DEBT :
Term loan installment 0.41 0.47 0.53 0.59 0.34
Interest on Term Loan 0.26 0.21 0.15 0.08 -

TOTAL OF ' B ' 0.67 0.68 0.68 0.67 0.34

C Debt Service Coverage Ratio

DSCR [A/B] 3.25 4.30 5.78 7.10 -

D Average DSCR 5.11

M/S. Ansh Agro Seed
ANNEXURE NO.5

ANALYSIS OF RETURN ON INVESTMENT :

(A Seed Processing Unit)
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
0 1 2 3 4
Profit before tax 1.67 2.61 3.76 5.13 6.80

Depreciation 0.25 0.22 0.19 0.17 0.14

Interest on Term Loan 0.26 0.21 0.15 0.08 -

2.18 3.04 4.09 5.38 6.94

# Average Return 4.33

# Capital Employed 20.00

# Return on Investment 21.63 %

M/S. Ansh Agro Seed
ANNEXURE NO.6
Assumption and workings notes to the Financial Statements of the Project Report:
1 Revenue In Lakhs
Sale of Packet
Total Quantity Estimated to be sold for a month : 100Pkt
Sale value of each Pkt : 0.041
Monthly Revenue : 4.16
Yearly Revenue 49.92
First year Revenue 50.00
Every year the Revenue is estimated to increase
by 20%.

2 Material Purchase Costs

The material is estimated to cost at 90% of sales price.
The cost for 1 year is 50*90% = 45 Lakhs

3 Salary
S.No. Category of Employee No.of Salary per Salary per
Employees Month Annuam
1 Managers 1 5,000.00 60,000.00
2 Helpers 2 4,000.00 96,000.00
3 Accountant 1 1,500.00 18,000.00
Total 4 174,000.00
Note: Increament in salary is taken at 5% per annum

4 Power
Power Charges is estimated at Rs.1000/- per month and provision made for increase
in rates @ 5% 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 13% per annum
Term loan will be repaid in 4 year

7 Selling and Administration Expenses:

Selling expenses includes sales commission, Post & Telephone expenses and other
Office maintenance expenses.
It is estimated at Rs.10,000/- per month and provision made for increase in cost
at 5% per annuam

Page 11 of 11