PROJECT REPORT

OF

MNAUFACTURING OF CEMENT BLOCKS AND POLES

M/S. RAHIM HARUN MUJAWAR

INTRODUCTION OF THE PROJECT

This project is proposed for manufacturing of Cement blocks, Paving Blocks, Hollow Blocks
and cement poles. Basically, the proprietor intends to start the manufacturing of various cement
based products to be used in construction industry.

Paving blocks are in no need of introduction. They are used everywhere; from household
usage to commercial complex, from Multiplex to Industrial establishments, everywhere. It serves
multiple purposes like decoration, durability, easy to maintain, and easy to create flooring for
outdoor premises. Paving blocks are basically heavy density cement based blocks, being able to
sustain heavy loads. Thus they are used everywhere. In fact, in many places they are used for the
traffic roads also.

Similarly, hollow blocks are made with cement and grit, but are hollow. These are used
mostly for the compound walls or similar purposes as they are cheaper and serves the purpose.

Cement poles are solid and made with more strength. They can be used for supports and
decorative purpose also.

PROMOTER’S PROFILE:

This project is proposed by Rahim Harun Mujawar. She decided to start this project in his
proprietary capacity. She is a dynamic young woman entrepreneur and has completed S. S. C. She
is resident of Palus, and wants to start this project at Palus, Dist. Sangli. The said plot of land, is taken
on lease.

Now being familiar with this field and has studied the business, she has acquired a good
knowledge about the market and a confidence to start own project. She is resident of Vijaynagar,
Sangli.

Project Report of M/s. Rahim Harun Mujawar, prepared by CA Shreyans Tejpal Shah
REGISTRATION DETAILS:

As this project is proposed in proprietary capacity, no independent registration shall be

required for the constitution of the firm. Other registrations such as MVAT, etc. shall be taken later
at the time of production.

GOVERNMENT ASSISTANCE

This project is eligible for subsidy under PMEGP scheme of the Government.

CONSTITUTION OF THE FIRM:

This project shall be implemented as a proprietorship of Rahim Harun Mujawar. She shall be
personally looking after the business.

UNIT REGISTRATION DETAILS

This project shall be a small scale unit as per GR of Govt. of Maharashtra and MSME Act.
Registration under MSME Act as a SSI unit shall be given by DIC which is in process.

LOCATION:

The proprietor has decided to the start the project at M. no. 698, Andhali Road, Palus, Dist.
Sangli. The said premises are taken on long term lease basis. A small work shed is to be constructed
for the machinery, which cannot be kept in open and for the raw material. Other than that, all the
process is to be carried out in open.

PROJECT COST DETAILS:

₹ In Lacs

A. Land and development Rented

Project Report of M/s. Rahim Harun Mujawar, prepared by CA Shreyans Tejpal Shah
 B. Building 7.66

C. Machinery & Moulds 12.20

D. Working Capital 05.14

Total 25.00

MEANS OF FINANCE: -

This project shall be financed in following manner:

₹ In Lacs

A. Capital Contribution 02.50

B. Bank Term Loan 22.50

Total 25.00

IMPLEMENTATION SCHEDULE: -

This project will be implemented in following schedule:

Sr. No. Activity Period

1. Acquisition and Development of Land. -

2. Civil Work and building construction 3-4 months.

3. Procurement of machinery and equipment 2-3 months

4. Arrangement for Power supply 1 month

5. Water Supply arrangement 2 weeks

6. Erection and installation of machinery 1 month

7. Initial Procurements and commissioning 1 month

8. Trial Runs 2 weeks

9. Commercial Production 1 Week.

Project Report of M/s. Rahim Harun Mujawar, prepared by CA Shreyans Tejpal Shah
MARKET POTENTIAL

Being used everywhere, paving blocks, hollow blocks and cement poles have a huge demand
due to their applicability and usage. Thus, market is not at all a problem. The basic market is local,
but, along with the services such as door delivery, fitting, etc., we can approach to distant market
also.

BASIS AND PRESUMPTIONS

i. It is assumed that the unit will operate on single shift basis for 300 working days in a year.

ii. The salary and wages for staff and labour has been taken into consideration on the basis
of prevailing market rates.

iii. To reach the full plant capacity, it requires 1 year after trial production.

iv. Interest rate is considered as per current prevailing rates in the project profile for both
recurring and nonrecurring investment.

v. Margin money will vary from 10-25% depending upon the location and scheme adopted
by the entrepreneur.

vi. Operative period of project is around 10 years considering technology obsolescence rate
and period of repayment of loan.

vii. The costs of land, construction charges, machinery and equipment, raw materials, and
consumables, other contingent expenses etc. indicated in the scheme are based on the prices,
prevailing at the time of project preparation.

Therefore, these are subject to necessary changes from time to time based on the local
conditions.

*****

Project Report of M/s. Rahim Harun Mujawar, prepared by CA Shreyans Tejpal Shah
 PROFITABILITY STATEMENT

₹ in Lacs

PARTICULARS I II III IV V VI VII

100% 105.00% 110.25% 115.76% 121.55% 127.63% 134.01%
Sales 120.00 126.00 132.30 138.92 145.86 153.15 160.81

Less- Direct Expenditures

- Raw Material 72.00 75.60 79.38 83.35 87.52 91.89 96.49

- Labour 16.50 17.33 18.19 19.10 20.06 21.06 22.11

- Power 1.60 1.68 1.76 1.85 1.94 2.04 2.14

- Handling & Transportation 6.00 6.30 6.62 6.95 7.29 7.66 8.04

- Rent & Mfg. Expenses 1.80 1.80 1.80 1.80 1.80 1.80 1.80

- Maintenance & Repairs 1.22 1.28 1.35 1.41 3.48 1.66 1.74

99.12 103.98 109.09 114.46 122.09 126.10 132.32

Gross Profit 20.88 22.02 23.21 24.46 23.77 27.05 28.49

Less- Indirect Expenditure :

- Interest on T. L. 2.81 2.41 2.01 1.61 1.21 0.80 0.40

- Selling & Admin Exps 9.00 9.45 9.92 10.42 10.94 11.49 12.06

- Depreciation 2.60 2.24 1.94 1.68 1.46 1.26 1.10

14.41 14.11 13.87 13.71 13.60 13.55 13.56

Net Profit Before I. Tax 6.47 7.91 9.33 10.75 10.17 13.49 14.93

Less- I. Tax Provision @ 30 % 1.94 2.37 2.80 3.22 3.05 4.05 4.48

Net Profit After I. Tax prov. 4.53 5.54 6.53 7.52 7.12 9.45 10.45

Add- Depreciation 2.60 2.24 1.94 1.68 1.46 1.26 1.10

Cash Accruals 7.13 7.78 8.48 9.21 8.58 10.71 11.55

Loan Repayment 3.21 3.21 3.21 3.21 3.21 3.21 3.21

D.S.C.R. 1.65 1.81 2.01 2.24 2.21 2.87 3.31

Average D.S.C.R. 2.30

Note:-
Maintenance for 5th year includes possible expected expenditure for machinery restoration.

Project Report of M/s. RahimHarun Mujawar prepared by CA Shreyans Tejpal Shah

 CASH FLOW & FUND FLOW STATEMENT

₹ in Lacs

I II III IV V VI VII

Sources of Funds

Cash Accruals 7.13 7.78 8.48 9.21 8.58 10.71 11.55

Increase in Capital 2.50 0.00 0.00 0.00 0.00 0.00 0.00

Increase in Term Loan 22.50 0.00 0.00 0.00 0.00 0.00 0.00

Increase in Bank Borrowing 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Increase in U/S Loan 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Others - Import L/c 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Dep. 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Application (A) 32.13 7.78 8.48 9.21 8.58 10.71 11.55

Disposition of Funds

Pre-op Expenses 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Increase in Capital Expenditure 19.86 0.00 0.00 0.00 0.00 0.00 10.00

Decrease in Term Loan 3.21 3.21 3.21 3.21 3.21 3.21 3.21

Decrease in Unsecured loan 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Interest 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Withdrawals 3.00 3.00 3.60 3.60 4.20 4.20 4.80

Increase in Working Capital 5.14 0.50 0.50 0.50 0.50 0.50 0.50

Others (specify) 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Disposition (B) 31.21 6.71 7.31 7.31 7.91 7.91 18.51

Opening Balance 0.00 0.91 1.98 3.14 5.04 5.70 8.49

Net Surplus (A-B) 0.91 1.07 1.16 1.89 0.66 2.80 -6.96

Closing Balance 0.91 1.98 3.14 5.04 5.70 8.49 1.53

Project Report of M/s. RahimHarun Mujawar prepared by CA Shreyans Tejpal Shah

 PROJECTED BALANCE-SHEET

₹ in Lacs

I II III IV V VI VII

Liabilities

Capital 2.50 4.03 6.57 9.50 13.43 16.35 21.59

Profit ofr the year 4.53 5.54 6.53 7.52 7.12 9.45 10.45

Less Withdrawals 3.00 3.00 3.60 3.60 4.20 4.20 4.80

Capital in Business 4.03 6.57 9.50 13.43 16.35 21.59 27.24

Term Loans 19.29 16.07 12.86 9.64 6.43 3.21 0.00

Other Liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total 23.32 22.64 22.36 23.07 22.77 24.81 27.24

Assets :

Gross Block 19.86 19.86 19.86 19.86 19.86 19.86 19.86

Depreciation 2.60 4.84 6.78 8.47 9.92 11.19 12.29

Net Block 17.26 15.02 13.08 11.39 9.94 8.67 7.57

Capital WIP 0.00 0.00 0.00 0.00 0.00 0.00 10.00

Current Assets 5.14 5.64 6.14 6.64 7.14 7.64 8.14

Cash & Bank balance 0.91 1.98 3.14 5.04 5.70 8.49 1.53

23.32 22.64 22.36 23.07 22.77 24.81 27.24

0.00 0.00 0.00 0.00 0.00

Note: -
Capital WIP denotes proposed expansion in future.

Project Report of M/s. RahimHarun Mujawar prepared by CA Shreyans Tejpal Shah

 M/S. RAHIM HARUN MUJAWAR

PROJECT OF CEMENT BLOCKS & POLES

COST OF PROJECT : ₹ in Lacs

Land -

Building 7.66

Plant & Machinery

(Machinery & Moulds) 12.20

Working Capital 5.14

25.00

MEANS OF FINANCE :

Equity Share Capital 2.50

Bank Term Loan 22.50

25.00

REQUIREMENT OF WORKING CAPITAL

Raw Material Stock 2.00

Work in Process 0.75

Receivables 0.75

Finished Goods Stock 1.64

5.14

Project Report of M/s. RahimHarun Mujawar prepared by CA Shreyans Tejpal Shah

DEPRECIATION :

Building 10% 0.77

Machinery 15% 1.83

2.60

Capacity of Production : Various Products

Installed Capacity per Day 15.00 Brass

Operating @ 80 % efficiency 12.00 Brass

3600.00 Brass per year

Raw Material Requirement ₹ In Lacs

Various Raw Materials 72.00

72.00

Project Report of M/s. RahimHarun Mujawar prepared by CA Shreyans Tejpal Shah

SALES : -
Value (₹ Lacs)

Paving Block, Hollow Blocks, 120.00

Cement Poles, etc.

120.00

LABOUR Qty Salary per Day Days ₹ In Lacs

Skilled Labour 5 300.00 300.00 4.50

Semi-Skilled Labour (On Contract) 20 200.00 300.00 12.00

16.50

POWER ₹ Lacs

Lord Required 10.00 KW

Load Connected 12.00 KW

Maximum Demand 10.00 KW

Consumption per day 75.00 Units

Consumption Per Year 22500.00 Units

Total Cost @ ₹ 7.10 1.60 ₹ Lacs

INTEREST :

Bank Term Loan @ 12.50% 2.81

2.81

Project Report of M/s. RahimHarun Mujawar prepared by CA Shreyans Tejpal Shah

 PROFITABILITY STATEMENTS

₹ in Lacs

Sales 120.00

120.00

Less :- Raw Material 72.00

Labour 16.50

Power 1.60

Handling & Transportation @ 5 % 6.00

Rent & Mfg. Expenses 1.80

Maintenance & Repairs 1.22

99.12 99.12

20.88
Less : T. L. Interest 2.81

Depreciation 2.60

Selling & Admin Exps. 9.00

14.41 14.41

Net Profit Before Tax 6.47

Less :- Income Tax @ 30% 1.94

Net Profit After I. Tax Prov. 4.53

Add :Depreciation 2.60

CASH ACCRUALS 7.13

Loan Repayment 3.21

D.S.C.R. 1.65

Notes :
Selling & Marketing Exps. are taken as 7.5 % on sales

Project Report of M/s. RahimHarun Mujawar prepared by CA Shreyans Tejpal Shah

 INTEREST SCHEDULE

₹ in Lacs

PARTICULARS TERM LOAN INTEREST

12.50%
BALANCE 22.50

[-] 1st Yr. Installment 3.21 2.81

BALANCE 19.29

[-] 2nd Yr. Installment 3.21 2.41

BALANCE 16.07

[-] 3rd Yr. Installment 3.21 2.01

BALANCE 12.86

[-] 4th Yr. Installment 3.21 1.61

BALANCE 9.64

[-] 5th Yr. Installment 3.21 1.21

BALANCE 6.43

[-] 6th Yr. Installment 3.21 0.80

BALANCE 3.21

[-] 7th Yr. Installment 3.21 0.40

BALANCE 0.00

Project Report of M/s. RahimHarun Mujawar prepared by CA Shreyans Tejpal Shah

 DEPRECIATION SCHEDULE

₹ in Lacs

PARTICULARS Building Machinery Total Depr.

10% 15%

OP. BALANCE 7.66 12.20

[-] 1st YR. Depr. 0.77 1.83 2.60

W. D. V. 6.89 10.37

[-] 2nd Yr. Depr. 0.69 1.56 2.24

6.20 8.81

[-] 3rd YR. Depr. 0.62 1.32 1.94

W. D. V. 5.58 7.49

[-] 4th Yr. Depr. 0.56 1.12 1.68

W. D. V. 5.03 6.37

[-] 5th Yr. Depr. 0.50 0.96 1.46

W. D. V. 4.52 5.41

[-] 6th Yr. Depr. 0.45 0.81 1.26

W. D. V. 4.07 4.60

[-] 7th Yr. Depr. 0.41 0.69 1.10

W. D. V. 3.66 3.91

Project Report of M/s. RahimHarun Mujawar prepared by CA Shreyans Tejpal Shah