Plant Capacity

Sr.No. Computation Details Machine Hours Production Units

A B C D E
1 Maximum capacity(365 Days*16 hours per day) 5840
2 Practical capacity
Maximum capacity 5840
Less: Idle capacity
Non Working Days 496
Machine Hrs for each unit 3 3.5 4 4.2 4.5
Plant Maintainance 200
3 Normal capacity 5144
4 Expected Capacity 4681 1560 1337 1170 1114 1040
5 Price of Products 6500 7000 7500 8500 9000
6 Sales 10140000 9359000 8775000 9469000 9360000
Total Revenue 47103000
 Land Building And Furniture
LAND
Basic cost of land, 32374000 2000per Sq mtr At Nashik MIDC
stamp duty and conveyance charges 2628670 38750 is 38750+8% Total cost of land
Cost of leveling and development 800000 2589920
Cost of developing approach and internal roads and 5300000
Tree Plantation 350000 FURNITURE
Total Cost 41452670 Furniture 8000000
Office Equipment 2000000
BULIDING Electrical accessories 500000
i. Main building housing plant and equipments. Total 10500000
workshops 10000000 Depreciation(10%) on Furnitures
Godown, warehouses 3150000 Depreciation on Office Equip(60%)
open storage/yard facilities. 2000000 Depreciation Vehicles(30%)
Administrative and general use buildings laboratories 7500000 Total Budget 102252670
Canteen 2250000 Working Capital 5000000
Other civil works like Sewer, drainage 8750000
Total Cost 33650000 Construction area
Workshop
Depreciation(10%) gowdown 22222.222 22222.222
Building 33650000 3365000 open storage/yard facilities 9000 9000
Furniture 10500000 1050000 admin buliding 5000 5000
Machinery 16650000 1665000 Canteen 21428.571 21428.571
Total 6080000 Other civil works 4500 4500
Salvage value after 8 years Square foot 19444.444 19444.444
Building 6730000 Square meter 81595.238
Furniture 2100000 7432
machinery 3330000 14864 3.67 acres
Land 41452670
Total Salvage Value at 9th year 53612670
 Machinery
Cost of machinery Production Persons Monthly Salary Yearly total
core cost 6500000 Production Manager 3 75000
Sales tax 650000 Shift Manager 3 60000
Transport charges to site, octroi taxes 500000 Maintenance Incharge 3 45000
Cost of imported machinery would consist of FOB 5500000 Electrician 5 50000
Cost of stores and spares 2500000 Welders 5 50000
Foundation and installation charges 1000000 Helpers 10 70000
Total 16650000 Labour 40 220000
Depreciation 1665000 Total 69 570000 6840000

Cost of Raw material Administration

Motor 800 Manager 1 18000
Battery 300 Accountant 2 28000
switch box 50 Office Assistant 3 27000
wiring 50 Computer operator 3 24000
chasis 550 Store Keeper 3 18000
switches 75 Peon 2 10000
others 150 Total 14 125000 1500000
Avg Raw material Cost(Per Unit) 1975 8340000

Avg Total sales cost For 5 Products yearly 12286475 6221

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Year
Sales Revenue
Factory cost
Administrative overheads
Advertising
Packaging Expenses
Commission
Travelling Expenses
Total cost of sales
Profit(sales-cost of sales)
Income From Sales
1 2 3 4 5 6 7 8
47103000 54168450 62293717 71637774 82383440 94740956 108952099 125294913
15072960 17333904 19933989 22924088 26362701 30317106 34864672 40094372
8340000 9591000 11029650 12684098 14586712 19290927 22184566 25512251
2355150 2001877.5 1701596 1446356 1229403 888243.68 755007.129 641756.06
1413090 1625053.5 1868812 2149133 2471503.2 2842229 3268562.97 3758847.39
1083369 1245874.34 1432755 1647668.8 1647668.8 1894819 2179041.98 2505898.26
1884120 2166738 2491749 2865511 3295337.6 3789638 4358083.96 5011796.52
30148689 33964447.34 38458551 43716855 49593326 59022962 67609934 77524921
16954311 20204002.66 23835166 27920919 32790114 35717994 41342165 47769992
 Profit And Loss Accounts
Particulars 1 2 3 4 5 6 7

I. Revenues From Sales 47103000 54168450 62293717 71637774 82383440 94740956 108952099
II. Cost Of Sales (Factory Cost) 15072960 17333904 19933989 22924088 26362700.8 30317105.92 34864671.68
III. Gross Profit (I – II) 32030040 36834546 42359728 48713686 56020739.2 64423850.08 74087427.32
IV Operating Expenses:
Administrative Expenses 8340000 9591000 11029650 12684097 14586712 19290926.785 22184565.80311
Advertising Expenses 2355150 2001877.5 1701595.88 1446356.49 1229403 888243.68172 755007.1294656
Packaging Expenses 1413090 1625053.5 1868811.51 2149133.22 2471503.2 2842228.68 3268562.97
Commission 1083369 1245874.34 1432755.48 1647668.8 1647668.8 1894819.12 2179041.98
Travelling Expenses 1884120 2166738 2491748.68 2865510.96 3295337.6 3789638.24 4358083.96
Depreciation 6080000 6080000 6080000 6080000 6080000 6080000 6080000
Total Operating Expense 21155729 22710543 24604562 26872766 29310625 34785856.507 38825261.84258
Results From Operating Activities (III – IV) 10874311 14124002 17755166 21840920 26710115 29637993.573 35262165.47743
V. Non Operating Income/Expenses:
VI. Gains/(Losses) On Sale Of Long- Term Investments
Gains/(Losses)
Other Income
Other Expenses
Total Non Operating Income/ Expenses:
VII. Income Before Income Tax (V + VI) 10874311 14124002 17755166 21840920 26710115 29637993.573 35262165.47743
VIII Tax Expense:
·      Current Income Tax 3588522 4660920 5859204 7207503 8814337 9780537 11636514
IX. Profit For The Period (VII – VIII) 7285789 9463082 11895962 14633416 17895778 19857456.573 23625651.47743
 8

125294913
40094372.16
85200540.84

25512250.6735758
641756.060045748
3758847.39
2505898.26
5011796.52
6080000
43510548.9036215
41689991.9363785

41689991.9363785

13757697
27932294.9363785
 NPV IRR And Profitability Index
Year NPAT Depreciation CFAT (NPAT+ DEP) PV FACTOR @ 15% PV OF CFAT CUMULATIVE PV OF CFAT PV FACTOR @ 17% PV OF CFAT
1 7285788.37 6080000 13,365,788.37 0.87 11,628,235.88 11,628,235.88 0.85 11,360,920.11
2 9463081.7822 6080000 15,543,081.78 0.76 11,812,742.15 23,440,978.04 0.73 11,346,449.70
3 11895961.23005 6080000 17,975,961.23 0.66 11,864,134.41 35,305,112.45 0.62 11,145,095.96
4 14633415.96199 6080000 20,713,415.96 0.57 11,806,647.10 47,111,759.55 0.53 10,978,110.46
5 17895776.68506 6080000 23,975,776.69 0.50 11,987,888.34 59,099,647.89 0.46 11,028,857.28
6 19857455.69389 6080000 25,937,455.69 0.44 11,412,480.51 70,512,128.39 0.39 10,115,607.72
7 23625650.86987 6080000 29705650.8698748 0.38 11288147.330553 81,800,275.72 0.33 9,802,864.79
8 27932294.59737 6080000 34012294.5973736 0.33 11224057.217133 93,024,332.94 0.29 9,863,565.43
9 Salvage Value 53612670 0.33 17692181.1 110,716,514.04 0.29 15,547,674.30
101,189,145.75

NPV=TOTAL CFAT-CASH OUTFLOW 8,463,844.04 IRR = 16.78

Since NPV is positive the project should be undertaken THIS IS THE MAXIMUM OUTPUT THAT THE PROJECT CAN PROVIDE

PROFITABILITY INDEX = PV OF CFAT/CASH OUTFLOW

PI = 1.08
SINCE THE PI IS MORE THAN 1 WE WILL ACCEPT THIS PROJECT
 DSCR
Year DSCR Profit aft tax Depreciation CFAT Opening bal intest @12% Repay amt dept oblig Closing Balance
1 NA 7285789 6080000 13365788.4 NA NA NA NA NA
2 1.7270090867 9463082 6080000 15543081.8 61351602 7362192.24 1637807.76 9000000 59713794.24
3 1.5631270635 11895962.02 6080000 17975961.2 59713794.24 7165655.3088 4334344.6912 11500000 55379449.5488
4 1.4285114455 14633416 6080000 20713416 55379449.549 6645533.9459 7854466.0541 14500000 47524983.49466
5 1.5983851127 17895777.58 6080000 23975776.7 47524983.495 5702998.0194 9297001.9806 15000000 38227981.51401
6 1.3651292468 19857456.57 6080000 25937455.7 38227981.514 4587357.7817 14412642.218 19000000 23815339.2957
7 1.3502568577 23625651.48 6080000 29705650.9 23815339.296 2857840.7155 19142159.285 22000000 4673180.01118
8 6.4983844204 27932294.94 6080000 34012294.6 4673180.0112 560781.60134 4673180.0112 5233961.612522 0
15.530803233 Average DSCR
2.2186861762 DSCR

Total Budget 102252670

Loan From Bank 61351602