PROJECT REPORT

OF

MINERAL WATER PLANT

M/s. LILAWATI AQUA MINERAL

-: Prepared by:-

SHREYANS TEJPAL SHAH

Chartered Accountants

127/2, Rockel Lane,

Vakharbhag, Sangli

Tel: (0233) 2623625, 2622536

 PROJECT REPORT
OF
MINERAL WATER PLANT
M/S. LILAWATI AQUA MINERAL

INTRODUCTION:-

Mineral water can be safely defined as potable water, containing the necessary
mineral nutrients required by the body and beneficial to human metabolism.
Potable spring waters containing, sulphur, iron, magnesium and other mineral
salts occurring in certain regions are claimed to be beneficial to human metabolism. The
therapeutic value of such waters is questionable carbonated mineral waters also contain
lithium salts.
Natural fresh water supplies are derived indirectly from the oceans. The water flows
over the surface or percolates into the ground water flows back to the oceans completing
the hydrological cycle.

Water supplies are classified as

(i) Surfaces supplies and
(ii) Underground waters.
Surfaces waters are rivers, lakes, ponds, and reservoirs. Wells and springs are the
sources of underground water.
Water vapor in clouds is generally pure but gathers dust and gases when it
reaches the earth suspended organic matter and soil turbidity and picked up. Well waters
usually are free from suspended materials and organic matters due to filtration through the
earth.
Surface waters are generally low in mineral content but relatively high in suspended
and organic materials.
USES & APPLICATION:-

Mineral water is bottled under very hygienic conditions under strict quality control
before being marketed. Its major use is in 5 star Hotels and Hospitals where good quality
pure water is required for purposes. It is marketed at places and regions where hygienic
drinking water is not available.

MARKET SURVEY:-

The consumption of mineral water is linked with tourism industry as the concept has
virtually been imported from the Western media. The necessity and hygienic nature of the
product has led to an increase in its consumption in mainly the top star hotels Indias
potential for tourism is virtually limitless.
The mineral water is one of the important items which are directly consumed by
people all over the world. Due to consideration of Health View Point the consumption of
ordinary water is gradually decreasing.
The ordinary water contains so many toxic elements, impurities which some time
causes fatal. People are generally being aware to consume clean pure water where it is
available. Some time people have to suffer from different diseases. The mineral water
consumption is well advised.
Thus, we can say that, major consumption of mineral water is generally assessed by
the number of tourists arriving in India from foreign countries and also the high income
earning people. They generally consume mineral water sealed in BOPP plastic bottles.

MANUFACTURING PROCESS:-

The basic Manufacturing process consists of the following steps:

1. Filtration
2. Demineralization
3. Blending with Salts & Gases
4. Quality Control & Testing
5. Bottling
 6. Packing.
7. Dispatching
The demineralization unit is designed with two lines, each line consisting of one
cation exchanger and one anion exchanger and one mixed bed. Normal operation will be
one line in operation and one line in standby.

BLENDING: -
After blending, samples are regularly taken at intervals of every one hour and tested
and corrective action taken in the blending unit.

BOTTLE FILLING & SEALING UNIT :-

The automatic machine for the production of bioriented bottles using the stretch
blow technology is available from W. Germany. An automatic sterilizing filling & sealing
plant is installed.

PACKING:-
After filling the quality mineral water in Bottles the same are packed in cardboard
boxes each containing 10 bottles.
 PROJECT REPORT

OF

MINERAL WATER

COST OF PROJECT :- Rs. In Lacs

LAND Own

BUILDING 20.00

MACHINERY 64.00

OTHER ASSETS 4.00

88.00

MEANS OF FINANCE :-

PROMOTORS 22.00

BANK TERM LOAN 66.00

88.00

Working Capital Requirement

Stock of Materials 15.00 Days 5.05

Receivables 15.00 Days 8.63

13.68

Margin by Proprietor 25% 3.42

Bank Finance 75% 10.26

INTEREST :
Term Loan 13% 8.58

Working Capital Finance 13% 1.33

9.91

DEPRECIATION :
BUILDING 10% 2.00
MACHINERY 20% 12.80

14.80
CAPACITY :

Bottles
Installed Capacity : 24500 Bottle Per Day
Utilisation 60 % : 14700 Bottles Per Day
total no. of working days 300.00 Days
4410000.00 Nos

Total Sales Nos. Rate Total Rs. Lacs

Bottles 4410000.00 5.75 253.58

Total 253.58

Bottling Cost Nos. Rate Total Rs. Lacs

Bottles 4410000.00 2.75 121.28

Total 121.28

Labour Nos. Salary p. m. Total Rs. Lacs

Supervisor / Manager 1.00 9000.00 1.08

Skilled Labour 5.00 4500.00 2.70
Unskilled Workers 10.00 3500.00 4.20

Total 7.98

POWER

Load Connected 200.00 KW

Maximum Demand 185.00 KW
Consumption for 12 Hrs 1665.00 Units
Consumption Per Year 516150.00 Units
Total Cost @ 5.00 25.81 Rs. Lacs

Transportation & Generator Expenses Rs. Lacs

Transportation 10 trips/ day X 2 Ltrs X Rs. 45 X 300 days 2.70

Generator Diesel 20 Ltrs per day X Rs. 45 X 300 days 2.70

5.40
PROFITABILITY STATEMENTS (1st YEAR) 60% Rs. Lacs

Sales 253.58

[-] Raw Material [Water] 2.54

Electricity 25.81

Labour 7.98

Transportation & Generator 5.40

Bottling Exps 121.28

Selling & Marketing Exps 44.10

207.10 207.10

GROSS PROFIT 46.48

[-] Interest on T. Loan 8.58

Interest on C. C. 1.33

Depreciation 14.80

Other Exps 6.00

30.71 30.71

Net Profit Bef. Tax 15.76

[-] I. Tax provision @ 30% 4.73

Net Profit After I.Tax prov. 11.03

Add Depreciation 14.80

CASH ACCRUALS 25.83

Loan Repayment 13.20

D.S.C.R. 1.58
PROFITABILITY STATEMENT [FIVE YEARS] :-

YEAR I II III IV V
Utilization % 60% 60% 65% 65% 70%

Sales 253.58 266.25 288.44 302.86 326.16

Less - Raw material 2.54 2.66 2.88 3.03 3.26

- Labour 7.98 8.78 9.66 10.62 11.68

- Electricity 25.81 27.10 29.36 30.82 34.85

- Trans. & Generator 5.40 5.67 6.14 6.45 7.29

- Bottles 121.28 127.34 137.95 144.85 155.99

- Selling Exp. 44.10 45.42 49.21 50.68 56.22

Total 207.10 216.97 235.20 246.46 269.30

Gross Profit 46.48 49.28 53.24 56.41 56.86

Less - Interest on T.L. 8.58 6.86 5.15 3.43 1.72

- Interest on C. C. 1.33 1.33 1.33 1.33 1.33

- Depreciation 14.80 12.04 9.81 8.01 6.56

- Admn. Exps 6.00 6.18 6.70 6.90 7.43

TOTAL 30.71 26.42 22.99 19.67 17.03

Net profit Before I. Tax prov. 15.76 22.87 30.26 36.73 39.83

[-] I.Tax provision. 4.73 6.86 9.08 11.02 11.95

Net profit Aft. I. Tax prov 11.03 16.01 21.18 25.71 27.88

Added Back Depreciation 14.80 12.04 9.81 8.01 6.56

Cash Accruals 25.83 28.05 30.99 33.73 34.43

Loan Repayment 13.20 13.20 13.20 13.20 13.20

D. S. C. R. 1.58 1.74 1.97 2.23 2.42

Average D. S. C. R. 1.99
INTEREST SCHEDULE [FIVE YEARS] :-

PARTICULARS T.L. INTEREST W. Cap INTEREST

13.00% 13.00%

BALANCE 66.00 8.58 10.26 1.33

[-] Ist Yr. Installment 13.20 0.00

BALANCE 52.80 6.86 10.26 1.33

[-] IIst Yr. Installment 13.20 0.00

BALANCE 39.60 5.15 10.26 1.33

[-] IIIrd Yr. Installment 13.20 0.00

26.40 3.43 10.26 1.33

[-] IVth Yr. Installment 13.20 0.00

13.20 1.72 10.26 1.33

[-] Vth Yr. Installment 13.20 0.00

0.00 10.26

DEPRECIATION SCHEDULE [FIVE YEARS] :-

PATICULARS Building Machinery Total Depr.

10% 20%

OP.BALANCE 20.00 64.00

[-] Ist YR. Depr. 2.00 12.80 14.80

W.D.V. 18.00 51.20

[-] IInd Yr. Depr. 1.80 10.24 12.04

16.20 40.96

[-] IIIrd YR. Depr. 1.62 8.19 9.81

W.D.V. 14.58 32.77

[-] IVnd Yr. Depr. 1.46 6.55 8.01

13.12 26.21

[-] Vnd Yr. Depr. 1.31 5.24 6.56

11.81 20.97
CASH FLOW & FUND FLOW STATEMENT [FIVE YEARS] :-

I II III IV V
Sources of Funds

Cash Accruals 25.83 28.05 30.99 33.73 34.43

Increas in Capital 25.42 0.00 0.00 0.00 0.00

Increase in Term Loan 66.00 0.00 0.00 0.00 0.00

Increase in Bank Borrowing 10.26 0.00 0.00 0.00 0.00

Increase in Unsecured Loan 0.00 0.00 0.00 0.00 0.00

Depreciation 0.00 0.00 0.00 0.00 0.00

Others (specify) 0.00 0.00 0.00 0.00 0.00

Total Application (A) 127.52 28.05 30.99 33.73 34.43

Dispossion of Funds

Pre-op Expenses 0.00 0.00 0.00 0.00 0.00

Increase in Capital Expenditure 88.00 0.00 0.00 0.00 0.00

Decrease in Term Loan 13.20 13.20 13.20 13.20 13.20

Interest 0.00 0.00 0.00 0.00 0.00

Taxation 0.00 0.00 0.00 0.00 0.00

Increase in Working Capital 13.68 2.00 2.00 2.00 2.00

Others (specify) 0.00 0.00 0.00 0.00 0.00

Total Dispossion (B) 114.88 15.20 15.20 15.20 15.20

Opening Balance 0.00 12.63 25.48 41.27 59.80

Net Surplus (A-B) 12.63 12.85 15.79 18.53 19.23

Closing Balance 12.63 25.48 41.27 59.80 79.03

PROJECTED BALANCE SHEET [ FIVE YEARS ] :-

I II III IV V
Liabilities

Equity Share Capital 25.42 25.42 25.42 25.42 25.42

Reserve & Surplus 11.03 27.04 48.22 73.93 101.81

Term Loans 52.80 39.60 26.40 13.20 0.00

Bank Borrowing for W.C. 10.26 10.26 10.26 10.26 10.26

Other Liabilities (specify) 0.00 0.00 0.00 0.00 0.00

Total 99.52 102.32 110.30 122.81 137.49

Assets :

Gross Block 88.00 88.00 88.00 88.00 88.00

Depreciation 14.80 26.84 36.65 44.66 51.22

Net Block 73.20 61.16 51.35 43.34 36.78

Pre-operative Exps 0.00 0.00 0.00 0.00 0.00

Current Assets 13.68 15.68 17.68 19.68 21.68

Cash & Bank balance 12.63 25.48 41.27 59.80 79.03

99.52 102.32 110.30 122.81 137.49

0.00 0.00 0.00 0.00 0.00