1

DNA LAB - MANJERI

(Proprietor Mr. Rasheed Ali)







PROJECT REPORT






Address
31-619B
POLAR AVENUE,
NEAR MEDICAL COLLEGE,
MANJERI,
MALAPPURAM-676121


2


Index
Sl Part Page No


1

Prelude


3

2

Executive summary


4

3

Location and demographic advantages
5

4


Background of the promoter
6

5

Project requirement and cost
7

6

Means of finance
10

7

Assumptions to the projected financial statements
10

8

Projected Profitability statement
23

9

Projected Balance Sheet
24

10

Projected Fund Flow statement
25

11


Debt Service Coverage ratio

26







3


SYNOPSYS OF DNA LAB PROJECT, MANJERI
PRELUDE

Heightened physician awareness to better clinical outcomes and increasing patient
requirement to avail of high quality care, have made it imperative for providers to
deliver targeted therapy. This has been made possible by the availability of sensitive
and specific diagnostic tests, along with technologically advanced medical devices
and equipments. These further enable healthcare providers to utilize material and
human resources optimally.

Overall, the Indian healthcare industry is estimated to grow at a rate of 23 percent
per annum. This growth will be driven by healthcare facilities, private-public
projects, medical diagnostic and pathological laboratories, and the health insurance
sector. The diagnostics sector is projected to contribute USD 3.5 billion, by 2014. An
overview of the medical diagnostics and devices market, shows that as of FY 2013,
the diagnostic and pathological laboratory (path lab) test services market holds 52.1
percent of share, followed by devices. Demand for these sectors has been spurred by
a steady rise in:


1. Healthcare spending, which accounts for over 5 percent of GDP. Of this, public
spending will approximate 3.5 percent by 2014, compared to the existing level
of 2.5 percent.
2. Increasing consumerism. With economic growth augmenting incomes of the
middle and upper classes, their demand for accurate and timely medical care,
is likely to increase. As a result, healthcare expenditure will command a
greater share of the wallet. Indians are becoming more aware of their health,
due to the improved availability and accessibility of better health related
information. Current trends include continuous monitoring of health status
through regular checkups, and of health information by patients
3. The dynamic healthcare landscape in the country will further augment the
demand for effective therapeutic modalities. Trends include increasing
incidence of lifestyle related diseases, greater awareness of health related
concerns, growth of medical tourism, increasing penetration of health
insurance in the country. Statistics indicate that there has been an
approximately 25 percent increase in laboratory business due to screening and
follow up for lipid profile3, blood glucose levels, glycosylated heamoglobin,
speciality tests for thyroid hormone levels and basic cancer markers.


4


EXECUTIVE SUMMARY
DNA Lab is a start-up venture committed to provide the most convenient, friendliest
diagnostic testing service to people in and around Manjeri. DNA Lab is constituted in
the form of a proprietorship by Mr. Rasheed Ali who brings in his several years of
expertise in medical industry.

M/s DNA Lab has identified three market segments that they will serve. First segment
is the large number of patients of Manjeri Medical College, Malappuram, who will be
attracted by giving quality testing at reasonable cost. The second group of patients is
expected from physicians having private medical practices in the nearby palces. The
third group of patients are expected locally, who come for routine health check-up.

M/s DNA Lab offers comprehensive clinical tests for potential patients. Several tests
will be done in-house including: Clinical Pathology, Biochemistry, Hematology and
Microbiology.

M/s DNA Lab will serve patients with fast, accurate, private, reasonably priced
clinical testing services. M/s DNA Lab will exceed all of their customer's expectations.
M/s DNA Lab is also planning for providing home collection of samples, which will be
unique for the customers in Manjeri locality.

M/s DNA Lab offers a comprehensive clinical test for potential patients under one
roof. The tests include:
Clinical Pathology:- Laboratory chemical analysis of bodily fluids, such as
blood, urine
Biochemistry:- Testing of proteins, carbohydrates, lipids, nucleic acids and
other bio-molecules
Hematology:- Testing of blood cells, hemoglobin, blood proteins in blood
Microbiology:- Analysis of microorganisms including bacteria, viruses, fungi and
parasites
A detailed list of tests offered by M/s DNA Lab is given in the later parts of this
project report.




5


LOCATION AND DEMOGRAPHIC ADVANTAGES

The proposed lab is located very near to Manjeri Medical College in Malappuram
district. There is only one medical college in Malappuram and patients who cant
afford treatment in costly private hospitals are expected to come from all parts of
Malappuram for treatment to Manjeri Medical College.

Demography of Malappuram
Area:
3000 km
2

Population:
Based on social audit report 2011- 41,11,000/-
Population Density: 1158/ km
2

Demography of Manjeri
Area:
53.06 km
2

Population:
Based on social audit report 2011- 97,104/-
Population Density: 1800/ km
2


Though the lab is located in Manjeri, it is expected to attract customers from all parts
of Malappuram District due to its close proximity to Manjeri Medical College.



6

BACKGROUND OF THE PROMOTER

Mr. Rasheed Ali, who is the Promoter and Managing director of M/s Anglade
Diagnostics Limited ( A public Limited company registered with ROC, Eranamkulam)
has more than 7 years of experience in medical equipment and service field.

Personal Profile
Name Mr. Rasheed Ali
Fathers Name
Mr. Moideen Kutty
Age 42 years
No of years experience in similar field More than 7 years hands on experience
Other business ventures Managing Dirctor at Anglade Diagnostics
Ltd
Address Kallidumbil House, Edakkara Post,
Malappuram- 679 331
Phone +91 9447291182










7

PROJECT REQUIREMENT AND COST



PROJECT COST AND MEANS OF FINANCE

Rs. in lakhs
A PROJECT COST
1 Machinery and Equipments

48.16
2 Room Deposit

2.0
3 Preliminary Expense

0.50
4 Working capital

3.28
TOTAL

53.94
B MEANS OF FINANCE
1 Capital

15.42
2 Bank Loan 38.52
TOTAL

53.94










8

1. Machinery, Equipments and other fixed cost
List of equipments and Machinery required for the Project
Description Qty Rate Amount
Computer 3 26,040.00 78,120.00
AC 1.5 3 34,700.00 104,100.00
Stabilizer type 1 3 2,750.00 8,250.00
AC 1 1 28,900.00 28,900.00
Stabilizer type 2 1 1,900.00 1,900.00
Digital display with software and
technology
1 7,00,000.00 7,00,000.00
Fridge 2 19,500.00 39,000.00
Stabilizer type 3 1 1,000.00 1,000.00
Anglade ads 301 Fully Automated 1 18,44,456.30 18,44,456.30
Anglade Haematology Analyzer 1 930,249.60 930,249.60
Mini genset 1 175,000.00 175,000.00
Laser Printers 20,000.00 20,000.00
Fans and Lights NA 50,000.00 50,000.00
Interior and exterior decoration
and furniture
NA 550,000.00 550,000.00
Laboratory data management and
accounting software
NA 15,000.00 15,000.00
Other Equipments NA 254,948.00 254,948.00
Total 48,16,924.60


9

2. Room Deposit
The proprietor has paid Rs.200,000/- as security deposit for room taken on lease.

3. Preliminary Expense
Preliminary expense include registration charges, travelling expense, initial publicity
expense, and other miscellaneous expense incurred to set up the laboratory.

4. Working capital
The working capital requirement is estimated as below;

Direct Expenses Amount in
Rs
Chemicals, reagents, sensitivity discs, culture media and stains 50,000.00
Biochemical regents 200,000.00
Salary
Technician (2 X 10,000.00) 20,000.00
Lab Assistant (2 X 6000.00) 12,000.00
Receptionist and computer operator (2 X 7000.00) 14,000.00
Sales and canvassing executive 7,000.00



53,000.00
Electricity 15,000.00
Other expense (Contingency ) 10,000.00
Total 328,000.00




10

MEANS OF FINANCE

The promoter will bring in enough cash for meeting all the working capital
requirement and part of fixed cost, and the promoter intends to finance the
purchasing cost of equipments and machinery as explained in the table above (page
No 8) by availing a term loan.
Intended Bank Finance

Machinery, Equipments and
other fixed cost
48.16 lakhs
Bank Finance 38.52 Lakhs
Margin 09.64 Lakhs



ASSUMPTIONS TO THE PROJECTED FINANCIAL STATEMENTS
1. Income from Laboratory

The average test price per patient is estimated to be Rs. 250/- per test. Average test
price is calculated by finding the mean average of 111 commonly done tests. The
computation and retail pricing chart is given below;





11

Common Laboratory Test
Retail Pricing Chart
TESTS Sample Volume Price
CBC EDTA BLOOD 3 ml 250.00
HB EDTA BLOOD 2 ml 50.00
PCV EDTA BLOOD 2 ml 60.00
TC EDTA BLOOD 2 ml 60.00
DC EDTA BLOOD 2 ml 60.00
ESR CITRATE BLOOD 2 ml 60.00
PLATELET EDTA BLOOD 2 ml 100.00
RBC EDTA BLOOD 2 ml 60.00
AEC EDTA BLOOD 2 ml 50.00
BT /CT - 2 ml 60.00
BLOOD GROUPING EDTA BLOOD 2 ml 50.00
DIRECT COOMBS TEST EDTA BLOOD 2 ml 200.00
INDIRECT COOMBS TEST SERUM 1 ml 250.00
PHERIPHERAL SMEAR EDTA BLOOD 2 ml 100.00
MALARIAL PARASITE ( MP ) EDTA BLOOD 2 ml 60.00
MANTOUX -

60.00
PROTHROMBINE TIME CITRATE PLASMA 3 ml 250.00
APTT CITRATE PLASMA 3 ml 300.00
ANTI THROMBIN CITRATE PLASMA 1 ml 600.00
FIBRINOGEN CITRATE PLASMA 1 ml 400.00
CA-125 SERUM 1 ml 600.00
CROSS MATCH

150.00
LE CELLS EDTA BLOOD 3 ml 250.00
12

RETICULOCYTE EDTA BLOOD 2 ml 120.00
BLOOD SUGAR EDTA BLOOD 2 ml 60.00
GLUCOSE CHALLENGE TEST EDTA BLOOD 2 ml 200.00
GTT EDTA BLOOD 2 ml 250.00
SUGAR SPOT TEST EDTA BLOOD 2 ml 60.00
UREA SERUM 1 ml 100.00
CREATININE SERUM 1 ml 100.00
LIPID PROFILE SERUM 1 ml 400.00
TOTAL CHOLESTEROL SERUM 1 ml 100.00
HDL CHOLESTEROL SERUM 1 ml 100.00
TRIGLYCERIDES SERUM 1 ml 150.00
LIVER FUNCTION TEST SERUM 1 ml 500.00
SGOT SERUM 1 ml 100.00
SGPT SERUM 1 ml 100.00
GGTP SERUM 1ml 100.00
ALP SERUM 1 ml 100.00
TOTAL PROTEIN SERUM 1 ml 100.00
ALBUMIN SERUM 1 ml 100.00
BILIRUBIN (T & D) SERUM 1 ml 150.00
BILIRUBIN TOTAL SERUM 1 ml 100.00
CALCIUM SERUM 1 ml 150.00
URIC ACID SERUM 1 ml 100.00
SERUM ELECTROLITE SERUM 1 ml 400.00
SODIUM & POTASSIUM SERUM 1 ml 200.00
CHLORIDE SERUM 1 ml 100.00
PHOSPHOROUS SERUM 1 ml 100.00
HBA1c EDTA BLOOD 2 ml 300.00
CPK SERUM 1 ml 500.00
CK-MB SERUM 1 ml 500.00
ACID PHOSPHATASE SERUM 1 ml 200.00
CHOLINESTERASE SERUM 1 ml 650.00
URINE SUGAR URINE

10.00
URINE ALBUMIN / SUGAR URINE

30.00
13

MICRO ALBUMIN URINE

250.00
TROP - I SERUM 2 ml 1200.00
AMYLASE SERUM 1 ml 300.00
VITAMIN B12 SERUM 1 ml 600.00
ANTI ds DNA SERUM 1 ml 600.00
BETA HCG SERUM 1 ml 400.00
C- Peptide SERUM 1 ml 450.00
FSH SERUM 1 ml 250.00
LH SERUM 1 ml 250.00
HCV SERUM 1 ml 350.00
HIV SERUM 1 ml 250.00
INSULIN (Fasting) SERUM 1 ml 400.00
LEPTOSPIRA IgM EDTA BLOOD 1 ml 400.00
PROLACTIN SERUM 1 ml 250.00
CD4/CD8 COUNT EDTA BLOOD 3 ml 900.00
TFT SERUM 1 ml 450.00
FREE TFT SERUM 1 ml 500.00
T3, T4, (EACH) SERUM 1 ml 150.00
TSH SERUM 1 ml 250.00
PSA SERUM 1 ml 400.00
TESTOSTERONE-TOTAL SERUM 1 ml 350.00
HIV SERUM 1 ml 250.00
HbsAg SERUM 1 ml 150.00
VDRL SERUM 1 ml 100.00
ASO SERUM 1 ml 150.00
RA SERUM 1 ml 150.00
CRP SERUM 1 ml 200.00
WIDAL SERUM 1 ml 100.00
TB IgM SERUM 1 ml 400.00
IgE TOTAL SERUM 1 ml 450.00
DENGUE-IgM SERUM 1 ml 450.00
CHICKENGUNYA SERUM 1 ml 500.00
A NA SERUM 1 ml 500.00
TPHA SERUM 1 ml 250.00
14

HSV - I ( IgG / IgM ) SERUM 1 ml 650.00
HSV - II ( IgG / IgM ) SERUM 1 ml 650.00
BENCE JONES PROTEIN URINE

150.00
BS / BP URINE

40.00
PREGNANCY URNIE

100.00
PLEURAL / CSF FLUID

250.00
SEMEN ANALYSIS SEMEN

200.00
STOOL ROUTINE STOOL

100.00
STOOL OCCULT BLOOD STOOL

60.00
URINE KETONE URINE

50.00
URINE COMPLETE URINE

50.00
URINE C/S URINE

250.00
BLOOD C/S (MANUAL
METHOD)
WHOLE BLOOD

300.00
BLOOD C/S(AUTOMATED) WHOLE BLOOD

500.00
SWAB C/S THROAT/
VEGINAL
250.00
SPUTUM C/S SPUTUM

250.00
PUS C/S PUS

250.00
STOOL C/S STOOL

250.00
SEMEN C/S SEMEN

250.00
AFB SMEAR SPUTUM

100.00
GRAM STAINING

100.00

Total

27,710.00

Average price = Rs.27,710.00/ 111 tests = Rs.250/- per test (rounded off)

It is estimated that during the first year on an average 25 patients will visit the lab
per day with an average no of 4 tests per patient.
Monthly no of tests = 25 Patients X 4 tests X 25 days = 2500/- tests
Yearly expected revenue = 2500 tetst per month X 12 months X Rs.250/- = Rs. 75 Laks
15

A 20% year to year increase has been expected and provided for in the projected
profitability statement.

2. Bio Chemical reagents, testing materials and consumables

The average cost of chemicals and consumables used for test is estimated to be
Rs. 100/- per test. Average test cost is calculated by finding the mean average of
cost of materials used in the 111 commonly done tests. The computation is given
below;

Tests Sample
Volume
Cost
CBC EDTA BLOOD 3 ml 100.00
HB EDTA BLOOD 2 ml 20.00
PCV EDTA BLOOD 2 ml 25.00
TC EDTA BLOOD 2 ml 30.00
DC EDTA BLOOD 2 ml 30.00
ESR CITRATE BLOOD 2 ml 30.00
PLATELET EDTA BLOOD 2 ml 45.00
RBC EDTA BLOOD 2 ml 30.00
AEC EDTA BLOOD 2 ml 20.00
BT /CT - 2 ml 20.00
BLOOD GROUPING EDTA BLOOD 2 ml 25.00
DIRECT COOMBS TEST EDTA BLOOD 2 ml 80.00
INDIRECT COOMBS TEST SERUM 1 ml 100.00
PHERIPHERAL SMEAR EDTA BLOOD 2 ml 40.00
MALARIAL PARASITE ( MP ) EDTA BLOOD 2 ml 30.00
MANTOUX 30.00

16

PROTHROMBINE TIME CITRATE
PLASMA
3 ml 70.00
APTT CITRATE
PLASMA
3 ml 140.00
ANTI THROMBIN CITRATE
PLASMA
1 ml 250.00
FIBRINOGEN CITRATE
PLASMA
1 ml 180.00
CA-125 SERUM 1 ml 220.00
CROSS MATCH

55.00
LE CELLS EDTA BLOOD 3 ml 100.00
RETICULOCYTE EDTA BLOOD 2 ml 60.00
BLOOD SUGAR EDTA BLOOD 2 ml 25.00
GLUCOSE CHALLENGE TEST EDTA BLOOD 2 ml 80.00
GTT EDTA BLOOD 2 ml 110.00
SUGAR SPOT TEST EDTA BLOOD 2 ml 20.00
UREA SERUM 1 ml 40.00
CREATININE SERUM 1 ml 55.00
LIPID PROFILE SERUM 1 ml 135.00
TOTAL CHOLESTEROL SERUM 1 ml 40.00
HDL CHOLESTEROL SERUM 1 ml 60.00
TRIGLYCERIDES SERUM 1 ml 50.00
LIVER FUNCTION TEST SERUM 1 ml 185.00
SGOT SERUM 1 ml 45.00
SGPT SERUM 1 ml 40.00
GGTP SERUM 1ml 45.00
ALP SERUM 1 ml 45.00
TOTAL PROTEIN SERUM 1 ml 45.00
ALBUMIN SERUM 1 ml 30.00
BILIRUBIN (T & D) SERUM 1 ml 60.00
BILIRUBIN TOTAL SERUM 1 ml 40.00
17

CALCIUM SERUM 1 ml 100.00
URIC ACID SERUM 1 ml 50.00
SERUM ELECTROLITE SERUM 1 ml 125.00
SODIUM & POTASSIUM SERUM 1 ml 80.00
CHLORIDE SERUM 1 ml 40.00
PHOSPHOROUS SERUM 1 ml 65.00
HBA1c EDTA BLOOD 2 ml 150.00
CPK SERUM 1 ml 240.00
CK-MB SERUM 1 ml 260.00
ACID PHOSPHATASE SERUM 1 ml 80.00
CHOLINESTERASE SERUM 1 ml 210.00
URINE SUGAR URINE

5.00
URINE ALBUMIN / SUGAR URINE

15.00
MICRO ALBUMIN URINE

115.00
TROP - I SERUM 2 ml 300.00
AMYLASE SERUM 1 ml 130.00
VITAMIN B12 SERUM 1 ml 220.00
ANTI ds DNA SERUM 1 ml 220.00
BETA HCG SERUM 1 ml 180.00
C- Peptide SERUM 1 ml 185.00
FSH SERUM 1 ml 110.00
LH SERUM 1 ml 90.00
HCV SERUM 1 ml 110.00
HIV SERUM 1 ml 80.00
INSULIN (Fasting) SERUM 1 ml 180.00
LEPTOSPIRA IgM EDTA BLOOD 1 ml 180.00
PROLACTIN SERUM 1 ml 80.00
CD4/CD8 COUNT EDTA BLOOD 3 ml 510.00
TFT SERUM 1 ml 200.00
18

FREE TFT SERUM 1 ml 200.00
T3, T4, (EACH) SERUM 1 ml 70.00
TSH SERUM 1 ml 135.00
PSA SERUM 1 ml 280.00
TESTOSTERONE-TOTAL SERUM 1 ml 180.00
HIV SERUM 1 ml 120.00
HbsAg SERUM 1 ml 80.00
VDRL SERUM 1 ml 40.00
ASO SERUM 1 ml 70.00
RA SERUM 1 ml 100.00
CRP SERUM 1 ml 80.00
WIDAL SERUM 1 ml 50.00
TB IgM SERUM 1 ml 160.00
IgE TOTAL SERUM 1 ml 150.00
DENGUE-IgM SERUM 1 ml 150.00
CHICKENGUNYA SERUM 1 ml 180.00
A NA SERUM 1 ml 200.00
TPHA SERUM 1 ml 80.00
HSV - I ( IgG / IgM ) SERUM 1 ml 215.00
HSV - II ( IgG / IgM ) SERUM 1 ml 210.00
BENCE JONES PROTEIN URINE

50.00
BS / BP URINE

20.00
PREGNANCY URNIE

45.00
PLEURAL / CSF FLUID

110.00
SEMEN ANALYSIS SEMEN

90.00
STOOL ROUTINE STOOL

40.00
STOOL OCCULT BLOOD STOOL

30.00
URINE KETONE URINE

20.00
19

URINE COMPLETE URINE

20.00
URINE C/S URINE

120.00
BLOOD C/S (MANUAL
METHOD)
WHOLE BLOOD

180.00
BLOOD C/S(AUTOMATED) WHOLE BLOOD

180.00
SWAB C/S THROAT/
VEGINAL
135
SPUTUM C/S SPUTUM

160.00
PUS C/S PUS

135
STOOL C/S STOOL

135
SEMEN C/S SEMEN

80.00
AFB SMEAR SPUTUM

40.00
GRAM STAINING

40
TOTAL

11,125.00


Average cost of chemicals per test = Rs.11,125/ 111 = Rs.100/- (Rounded off)
Yearly cost = Rs. 100 X 30,000 tests = Rs.30.00 Laks

A 25% year to year increase in cost is expected at provided for in the projected
Financial Statement.

3. Referral Commission
It is expected that 20% of total revenue will have to be shared in the form referral
commission to doctors who refer patients to DNA Lab.



20


4. Salaries
Break up of salary is given below
Salary
Technician (2 X 10,000.00) 20,000.00
Lab Assistant (2 X 6000.00) 12,000.00
Receptionist and computer operator (2 X 7000.00) 14,000.00
Sales and canvassing executive 7,000.00



53,000.00


A 10% increase in salary expense is provided for in the projected Financial Statement.


5. Electricity

The estimated electricity expense during first year is expected to be Rs.15000/- per month
during 1
st
year of operation. A 20% increase in electricity expense is expected and provided
for in the profitability statement.
6. Rent
Rent per month is Rs.30,000/-. A 10% increase in rent is expected and provided for in the
profitability statement.

7. Insurance
Insurance expenses is estimated to be Rs.20,000/- per month. No increase in insurance cost is
expected in the next forgeable years of operation
8. Marketing and Advertisement
Marketing and advertising expense during first year is expected to be Rs. 20,000/-. A 20%
increase in marketing expense is expected and provided for in the projected profitability
statement.

21

9. Travelling Expense
Travelling expense during first year is expected to be Rs. 6,000/- per month. A 20% increase
in travelling expense is expected and provided for in the projected profitability statement.

10. Miscellaneous Expense
Miscellaneous expense includes, cleaning charges, general office expense and all unplanned
and unprompted expense related to the functioning of the lab. Rs.12,000/- per month has
been provided for in this category and 20% year to year increase has been expected and
provided for in the projected financial statement.

11. Telephone Expense
Telephone expense during first year is expected to be Rs. 2,000/- per month. A 10% increase
in telephone expense is expected and provided for in the projected profitability statement.

12. Printing and Stationery

Printing and Stationery expense during first year is expected to be Rs. 15,000/-. A 20%
increase in expense is expected and provided for in the projected profitability statement.

13. Preliminary Expense written off
The total preliminary expense of Rs.50,000/- is written off in 5 equal proportions during the
first 5 years of operation.






22

14. Interest on term loan
Interest rate is taken as 14%. Interest computation table is given below.

PRINCIPAL AND INTEREST REPAYMENT SCHEDULE
Year Principal
Principal
Repayment Interest
1st Year 38.52 5.50 5.42
2nd Year 33.02 5.50 4.59
3rd Year 27.52 5.50 3.76
4th Year 22.02 5.50 2.92
5th Year 16.52 5.50 2.09
6th Year 11.02 5.50 1.25
7th Year 5.52 5.52 0.42


15. Depreciation
Depreciation has been computed as per the rates applicable under the Income Tax
Act, 1961

16. Income Tax
Income Tax has been provided as per the rates applicable under the Income Tax Act,
1961

17. Other Assumptions

a. The Lab will hold one months chemical reagents required for tests as closing
stock.
b. Referral commission will be settled in two months period. Debtors has been
worked out accordingly.

23

PROJECTED PROFITABILITY STATEMENT FOR THE FIRST SEVEN YEARS OF
OPERATION
(Rs in Lakhs)
PARTICULARS
1st
year
2nd
year
3rd
year
4th
year
5th
year
6th
year
7th
year
I. INCOME
1. Lab test charges 75.00 90.00 108.00 129.60 155.52 186.62 223.94
Closing stock 2.50 3.13 3.91 4.88 6.10 7.63 9.54

Total
A 77.50 93.13 111.91 134.48 161.62 194.25 233.48


2 Material consumption 30.00 37.50 46.88 58.60 73.25 91.56 114.45
3 Referral Commission 15.00 18.00 21.60 25.92 31.10 37.32 44.79
4 Salaries 6.36 7.00 7.70 8.47 9.32 10.25 11.28
5 Electricity 1.80 2.16 2.59 3.11 3.73 4.48 5.38
6 Rent 3.60 3.96 4.36 4.80 5.28 5.81 6.39
7 Insurance 0.20 0.20 0.20 0.20 0.20 0.20 0.20
9 Marketing Exps 0.20 0.24 0.29 0.35 0.42 0.50 0.60
10 Travelling 0.72 0.86 1.03 1.24 1.49 1.79 2.15
11 Miscellaneous Expenses 1.44 1.58 1.74 1.91 2.10 2.31 2.54
12 Telephone 0.24 0.26 0.29 0.32 0.35 0.39 0.43
13 Printing and Stationery 1.80 2.16 2.59 3.11 3.73 4.48 5.38
14 Preliminery Expense 0.10 0.10 0.10 0.10 0.10 - -
15 Interest on TL 5.42 4.59 3.76 2.92 2.09 1.25 0.42
16 Depreciation 7.37 6.04 5.06 4.28 3.64 3.11 2.65
TOTAL 74.25 84.65 98.19 115.33 136.80 163.45 196.66

Net Profit before tax (I-
II) 3.25 8.48 13.72 19.15 24.82 30.80 36.82
17 Income tax 0.13 1.00 2.42 4.05 5.75 7.54 9.35
Net Profit After tax 3.12 7.48 11.30 15.10 19.07 23.26 27.47





24

PROJECTED BALANCE SHEET FOR THE FIRST SEVEN YEARS OF
OPERATION (Amt in Rs. Laks)

PARTICULARS
1st
year
2nd
year
3rd
year
4th
year
5th
year
6th
year
7th
year
LIABILITIES


Capital 16.42 15.54 17.02 20.32 25.42 32.49 41.75
Add: Profit 3.12 7.48 11.30 15.10 19.07 23.26 27.47
19.54 23.02 28.32 35.42 44.49 55.75 69.22
Less: Drawings 4.00 6.00 8.00 10.00 12.00 14.00 16.00
Closing Capital 15.54 17.02 20.32 25.42 32.49 41.75 53.22
Term Loan 33.02 27.52 22.02 16.52 11.02 5.52 -


- - - - -
TOTAL 48.56 44.54 42.34 41.94 43.51 47.27 53.22
ASSETS

Fixed Assets 40.79 34.75 29.69 25.41 21.77 18.66 16.01
Debtors (Referal commission) 2.50 3.00 3.60 4.32 5.18 6.22 7.47
Closing Stock 2.50 3.13 3.91 4.88 6.10 7.63 9.54
Rent Deposit 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Preliminery Exp 0.40 0.30 0.20 0.10 -

Cash and Bank 0.37 1.36 2.94 5.23 8.46 12.76 18.20
TOTAL 48.56 44.54 42.34 41.94 43.51 47.27 53.22









25

FUND FLOW STATEMENT FOR THE FIRST SEVEN YEARS OF OPERATION
PARTICULARS
1st
year
2nd
year
3rd
Year
4th
Year
5th
Year
6th
Year
7th
Year


A. SOURCES OF FUNDS

1 Promoters Contribution 16.42 - - - - - -
2 TL 38.52 - - - - - -
3 Profit before tax, interest & Prelim Exps 8.77 13.17 17.58 22.17 27.01 32.05 37.24
4 Add: Depreciation 7.37 6.04 5.06 4.28 3.64 3.11 2.65
TOTAL A 71.08 19.21 22.64 26.45 30.65 35.16 39.89
B. APPLICATION

5 Fixed Assets 48.16 - - - - - -
6 Interest on loan 5.42 4.59 3.76 2.92 2.09 1.25 0.42
7 Repayment of term loan 5.50 5.50 5.50 5.50 5.50 5.50 5.52
8 Rent Deposit 2.00

9 Changes in Debtors 2.50 0.50 0.60 0.72 0.86 1.04 1.25
10 Preliminary Exps 0.50

11 Changes in Stock 2.50 0.63 0.78 0.97 1.22 1.53 1.91
12 Income Tax 0.13 1.00 2.42 4.05 5.75 7.54 9.35
13 Withdrawals 4.00 6.00 8.00 10.00 12.00 14.00 16.00
TOTAL B 70.71 18.22 21.06 24.16 27.42 30.86 34.45
14 Opening Cash - 0.37 1.36 2.94 5.23 8.46 12.76
15 Net Surplus 0.37 0.99 1.58 2.29 3.23 4.30 5.44
16 Closing Cash& Bank Balance 0.37 1.36 2.94 5.23 8.46 12.76 18.20






26

Debt Service Coverage
Ratio

PARTICULARS
1st
year
2nd
year
3rd
year
4th
year
5th
year
6th
year
7th
year

A. NET PROFIT

3.12

7.48

11.30

15.10

19.07

23.26

27.47
B. DEPRECIATION

7.37

6.04

5.06

4.28

3.64

3.11

2.65
C. PRELIM EXP WRITTEN
OFF

0.10

0.10

0.10

0.10

0.10

-

-
D. FINANCIAL EXPENSES

5.42

4.59

3.76

2.92

2.09

1.25

0.42

E. TOTAL

16.01

18.21

20.22

22.40

24.90

27.62

30.54

F. FINANCIAL EXPENSES

5.42

4.59

3.76

2.92

2.09

1.25

0.42
G. REPAYMENT OF LOAN

5.50

5.50

5.50

5.50

5.50

5.50

5.52

F . TOTAL

10.92

10.09

9.26

8.42

7.59

6.75

5.94


DSCR

1.47

1.80

2.18

2.66

3.28

4.09

5.14

Average DSCR = 2.95

CONCLUSION
From the above project report it can be easily concluded that the project is
technically viable and financially feasible provided the requisite loan is made
available.



27

CONFIDENTIALITY AND DISCLAIMER
This project report has been prepared by Rajeev K.M, Chartered Accountant, Nilambur, at
the request of Mr. Rasheed Ali for the exclusive use by their management. This report has
been prepared as an internal tool to assist the management to obtain necessary funding
required. As the project is in start-up phase, the financial projections have been
prepared based on assumptions and information compiled from the management.
Reasonable steps has been taken to ensure that information incorporated in the report is
accurate and that the assumptions are fair in the light of the information currently
available. Even if the events anticipated under the assumptions occur, actual results are
still likely to be different from the projection since anticipated events frequently do not
occur as expected and the variation may be material. Consequently, readers are
cautioned that this projection may not be appropriate for purposes other than that
described above. This document is intended for use for the above purpose and mere
possession of this document does not convey a right of reliance, nor may any party place
reliance on it, for any purpose other than that for which it was prepared. While the
information included herein is believed to be accurate and reliable, by delivery of this
document, Rajeev K.M, Chartered Accountant, does not make any representations of
warranties, expressed or implied, as to the accuracy or completeness of such information.
Each recipient of this document agrees to treat all information contained herein
confidentially and that the recipients will not, directly and indirectly, disclose, distribute
or reproduce such information or any part thereof without the written consent of the
management of M/s DNA Lab.