I M T & COMPANY CHARTERED ACCOUNTANTS HANDWARA KUPWARA J&K

DETAILED TECHNO-ECONOMIC CUM

PRE-INVESTMENT PROJECT REPORT

ON

LINE OF ACTIVITY : AUTO SERVICE CENTER

FOR

M/S KHALIQ MAQBOOL BHAT

LOCATION: TULWARI LANGATE KUPWARA

PROP:
KHALID MAQBOOL BHAT S/O MOHD MAQBOOL BHAT
R/O TULWARI LANGATE KUPWARA

Office Address: (H O)
IMT & COMPANY
CHARTERED ACCOUNTANTS
LEVEL-II AKSA MALL , I G ROAD OPP
EXHIBITION SRINAGAR KMR-190001
94199055084 , 9419013191 , 9419741560

Branch Office :
IMT & COMPANY
CHARTERED ACCOUNTANTS
2ND FLOOR SHEIKH HAMZAH COMPLEX
HANDWARA KUPWARA J&K-193221
Date:, 12/20/2022 7006616940 , 7051598336
Place:, srinagar imthandwara18@gmail.com

M/S KHALIQ MAQBOOL BHAT

1. PROJECT AT A GLANCE - TOP SHEET

1 Name of the Entreprenuer M/S KHALIQ MAQBOOL BHAT

2 Constitution (legal Status) INDIVIDUAL

3 Father's/Spouce's Name MAQBOOL BHAT S/O MOHD MAQBOOL BHAT

4 Unit Address : LOCATION: TULWARI LANGATE KUPWARA

Taluk/Block: LANGATE
District : KUPWARA
Pin: 193302 State:JAMMU & KASHMIR
E-Mail
Mobile
5 Product and By Product 0

6 Cost of Project : Rs. 4,00,000

Name of the project / business
AUTO SERVICE CENTER
activity proposed :
7 Means of Finance
Term Loan Rs. 3,80,000.00
KVIC Margin Money Rs. 1,40,000.00
Own Capital Rs. 20000.00

8 Debt Service Coverage :

Ratio
9 Pay Back Period : 5 Years

10 Project Implementation : 12 Months

Period

11 Break Even Point :

12 Employment : 4

13 Power Requirement : 5 KVA

14 Estimated Annual Sales : Rs. 3000000.00

Turnover
2. PROJECT HIGHLIGHTS
NAME AND UNIT ADDRESS:,

M/S KHALIQ MAQBOOL BHAT

LOCATION: TULWARI LANGATE KUPWARA

ACTIVITY
AUTO SERVICE CENTER

Scheme
PMEGP (KVIB)

Capital Expenditure
a) Cost Of Plant & 175000.00
Machinery
b) Contingencies on asserts 25000.00

Working Capital
200000.00

Total project cost 400000.00

Means of Finance
a) Promotor Capital 20000.00

b) Bank Finance 380000.00

c) Employment Potential 4

Subsity From govt/agency

140000.00

DETAILED PROJECT REPORT

3 COST OF PROJECT
A. Fixed Capital Investment
a. Land : Own/Rented

b. Workshed Area Sq.ft Rate in Rs. Amt. In Rs.

Work Place 200 0.00 0.00
0 0 0.00 0.00
Total 0.00

C. Machinery Qty. Rate Amount in Rs.

Air Compressor 1 47000.00 47000.00

Trolley Systems (Tools) 1 125000.00 125000.00
0.00
Other equipments like fan, ETC 1 3000.00 3000.00
0.00

Total 175000.00

d. Preliminary & Pre-operative Cost : (Renovation) Rs. 12000.00

e. Furniture & Fixtures : Rs. 8000.00
f. Contingency/Others/Miscellaneous Rs. 5000.00

Total Capital Expenditure : Rs. 200000.00

Working Capital Rs. 200000.00

Total Cost Project : Rs. 400000.00

3.1 Means of Financing :

Own Contribution 5% Rs. 20000.00
Bank Finance : 95%
Term Loan (Bank) Rs. 190000.00
Working Capital (from Bank) Rs. 190000.00

Total Rs. 380000.00

Subsity From govt/agency 35% Rs. 140000.00

3.2 STATEMENT SHOWING THE REPAYMENT OF TERM LOAN & WORKING CAPITAL :
TERM LOAN

Interest @
Year Opening Balance Installment Closing Balance
10.85%
1st 190000 38000 152000 20615
2nd 152000 38000 114000 16492
3rd 114000 38000 76000 12369
4th 76000 38000 38000 8246
5th 38000 38000 0 4123
6th 0 0 0 0
7th 0 0 0 0
8th 0 0 0 0

WORKING CAPITAL

Interest @
Year Opening Balance Installment Closing Balance
10.85%
1st 190000 38000 152000 20615
2nd 152000 38000 114000 16492
3rd 114000 38000 76000 12369
4th 76000 38000 38000 8246
5th 38000 38000 0 4123
6th 0 0 0 0
7th 0 0 0 0
8th 0 0 0 0
3.3 STATEMENT SHOWING THE DEPRECIATION ON FIXED ASSETS:
WORKSHED @ 10.00%
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Opening Balance 0 0 0 0 0
Depreciation 0 0 0 0 0
Closing Balance 0 0 0 0 0
MACHINERY @ 15.00%
Opening Balance 175000 148750 126438 107472 91351
Depreciation 26250 22313 18966 16121 13703
Closing Balance 148750 126438 107472 91351 77648
TOTAL DEPRECIATION
Workshed 0 0 0 0 0
Machinery 26250 22313 18966 16121 13703
Total 26250 22313 18966 16121 13703

4 Schedule of Sales Realization :

4.1 Details of Sales
Rate/ No. of Amount in Rs.
Particulars of Product
Pair/Unit Pair/Unit
-
3,000,000.00
Monthly sales from services 250000.00 12 -
-
-
-

Total 3000000.00

4.2 Capacity Utilization of Sales

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year

Capacity Utilization 70% 80% 90% 90% 90%

Sales / Receipts 2100000 2400000 2700000 2700000 2700000

5 Rawmaterials :
Particulars Unit Rate/unit Reqd.Unit Amount in Rs.
-
Vehicle Servicing Lubricants ltrs 270.00 1055 284,850.00
Oil Filters & Others pcs 90.00 550 49,500.00
-
-
-
Total 334350.00
5.1 Wages :
No. of Wages Amount in Rs.
Particulars
Worker Per Month (Per Annum)
Skill Manpower 1 5000.00 60000.00
unskilled workers 1 4500.00 54000.00
Helper 1 2500.00 30000.00
0.00
0.00
Total 3 144000.00

5.2 Repairs and Maintenance : Rs. 2600.00

5.3 Power and Fuel : Rs. 2000.00
5.4 Other Overhead Expenses : Rs. 1350.00

6 Administrative Expenses :
6.1 Salary
Sales Manager 1 6500.00 78000.00
0.00
0 0.00 0.00
Total 1 78000.00

6.2 Telephone Expenses 1500.00

6.4 Stationery & Postage 1350.00
6.5 Advertisement & Publicity 2350.00
6.6 Workshed Rent 18000.00
6.7 Other Miscellaneous Expenses 1380.00

Total 102580.00
7 Capacity Utilization of Manufacturing & Administrative Expenses :
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Capacity Utilization 70% 80% 90% 90% 90%
Manufacturing Expenses
Rawmaterials 1685124 1925856 2166588 2166588 2166588
Wages 100800 115200 129600 129600 129600
Repairs & Maintenance 1820 2080 2340 2340 2340
Power & Fuel 1400 1600 1800 1800 1800
Other Overhead Expenses 945 1080 1215 1215 1215
Administrative Expenses
Salary 78000 78000 78000 78000 78000
Postage Telephone Expenses 1050 1200 1350 1350 1350
Stationery & Postage 945 1080 1215 1215 1215
Advertisement & Publicity 1645 1880 2115 2115 2115
Workshed Rent 18000 18000 18000 18000 18000
Other Miscellaneous Expenses 966 1104 1242 1242 1242
Total: 1890695 2147080 2403465 2403465 2403465

8 Assessment of Working Capital :

Particulars Amount in Rs.
Sale 3000000.00

Manufacturing Expenses
Raw Material 334350.00
Wages 144000.00
Repair & Maintenance 2200.00
Power & Fuel 2000.00
Other Overhead Expenses 1875.00

Production Cost 484425.00

Administrative Cost 102580.00
Manufacturing Cost 587005.00
Working Capital Estimate :
Element of Working Capital No of Days Basis Amount in Rs.
0 28 Material Cost 45,213.00

Stock in process 28 Production Cost 45,213.00

Finished goods 28 Manufacturing Cost 54,787.13

Receivable by 28 Manufacturing Cost 54,787.13

Total 200,000.27

Total Working Capital Requirement (Roundoff) Per Cycle 200,000.00

9 Financial Analysis
9.1 Projected Profit & Loss Account :
Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year

Sales / Receipts 2100000 2400000 2700000 2700000

2100000 2400000 2700000 2700000
Manufacturing Expenses
Rawmaterials 1685124 1925856 2166588 2166588
Wages 100800 115200 129600 129600
Repairs & Maintenance 1820 2080 2340 2340
Power & Fuel 1400 1600 1800 1800
Other Overhead Expenses 945 1080 1215 1215
Depreciation 26250 22313 18966 16121
Production Cost 1816339 2068129 2320509 2317664
Administrative Expenses
Salary 78000 81900 85995 90295
Postage Telephone Expenses 1050 1200 1350 1350
Stationery & Postage 945 1080 1215 1215
Advertisement & Publicity 1645 1880 2115 2115
Workshed Rent 18000 18000 18000 18000
Other Miscellaneous Expenses 966 1104 1242 1242
Administrative Cost 100606 105164 109917 114217
Interest on Bank Credit @ 10.85%
Term Loan 20615 16492 12369 8246
Working Capital Loan 20615 16492 12369 8246
Cost of Sale 1958175 2206277 2455164 2448373
Net Profit Before Tax 141825 193724 244836 251627
Less Tax 0.00 0.00 0.00 0.00
Net Profit 141825 193724 244836 251627

9.2 CALCULATION OF DEBT SERVICE CREDIT RATIO (D.S.C.R) :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Net Profit 141825 193724 244836 251627
Add :
Depreciation 26250 22313 18966 16121
TOTAL - A 168075 216036 263802 267748
Payments :
On Term Loan :
Interest 20615 16492 12369 8246
Installment 38000 38000 38000 38000
On Working Capital
Interest 20615 16492 12369 8246
TOTAL - B 79230 70984 62738 54492
D.S.C.R = A/B
2.12 3.04 4.20 4.91
Average D.S.C.R

9.3 PROJECTED BALANCE SHEET :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
LIABILITIES :
Promoters Capital 20000 20000 20000 20000
Profit 141825 193724 244836 251627
Term Loan 190000 152000 114000 76000
Working Capital Loan 190000 152000 114000 76000
Current Liabilities 0 0 0 0
Sundry Creditors 0 0 0 0
541825 517724 492836 423627
ASSETS :
Gross Fixed Assets : 183000 156750 134438 115472
Less : Depreciation 26250 22313 18966 16121
Net Fixed Assets 156750 134438 115472 99351
Preliminary & Pre-Op. Expenses 12000 9000 6750 5063
Current Assets 190000 152000 114000 76000
Cash in Bank/Hand 195075 231286 263365 248276
Total 541825 517724 492836 423627

CASH FLOW STATEMENT :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Net Profit 141825 193724 244836 251627
Add : Depreciation 26250 22313 18966 16121
Term Loan 190000 152000 114000 76000
Working Capital Loan 190000 152000 114000 76000
Promoters Capital 20000 0 0 0
Total 568075 520036 491802 419748

Total Fixed Capital Invested 200000

Repayment of Term Loan 38000 38000 38000 38000

Repayment of WC Loan 38000 38000 38000 38000
Current Assets 190000 152000 114000 76000
Total 266000 228000 190000 152000

Opening Balance 0 302075 594111 895913

Surplus 302075 292036 301802 267748
Closing Balance 302075 594111 895913 1163661

9.5 BREAK EVEN POINT AND RATIO ANALYSIS :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Fixed Cost 147471 143969 141252 138584
Variable Cost 1836954 2084621 2332878 2325910
Total Cost 1984425 2228589 2474129 2464494

Sales 2100000 2400000 2700000 2700000

Contribution (Sales-VC) 263046 315380 367122 374090

B.E.P in % 56.06% 45.65% 38.48% 37.05%
Break Even Sales in Rs. 1177319 1095583 1038834 1000230
Break Even Units 2141 1992 1889 1819
Current Ratio 1.62 1.39 1.13 0.82

Net Profit Ratio 6.75% 8.07% 9.07% 9.32%

This Project Report has been prepared based on the data furnished by the entrepreneur whose
details are given in the application.
Place :SRINAGAR
Date:20-Dec-22
Prepared by :IMT & COMPANY
Full Name
M/S: KHALIQ MAQBOOL BHAT