Capital Expenditure

Electrical & Civil (500 sq.ft.) 40,000.00

Agarbatti making Machine 100,000.00
Plastic Desks, Patla, Kadai, spoons, 65,000.00
measuring glass, tin trays, aluminium
vessels, blow lamp stove, weighing balance,
jars, aluminium

Total capital expenditure 205000

Working capital 150,000.00
Total project cost 355,000.00

1.       Estimated Annual Production of Agarbatti ((Value in ‘000)

SI. No. Particulars Capacity Rate Total
(NO.OF.PKT. Value
)
1 Agarbatti (10 sticks 450000 2 932.7
in packet)
TOTAL 450000 2 932.7

4. Raw Material 600000

5. Labels and Packing Material 10000
6. Wages (Skilled & Unskilled) 230000
7. Salaries 36000
8. Administrative Expenses 2000
9. Overheads 5000
10. Miscellaneous Expenses 1000
11. Depreciation 12500 14550
12. Insurance 2050
898,550
13. Interest (As per the PLR)
(a) Capital Expenditure Loan 26650
(b) Working Capital Loan 19500
Total Interest 46,150 944,700 932,200

14. Working Capital Requirement

Fixed Cost 67,700
Variable Cost 864,500 932200
Requirement of Working Capital per Cycle 155,367
5,367.00

15. Estimated Cost Analysis

Particulars Capacity Utilization (Rs. in '000)
100% 60% 70% 80%
Fixed Cost 67.7 40.62 47.39 54.16
Variable Cost 865 519 605.5 692
Cost of Production 932.7 559.62 652.89 746.16
Projected Sales 1200 720 840 960
Gross Surplus 267.3 160.38 187.11 213.84
Expected Net Surplus 255 148 175 201

Production. 450 270 315 360

Production Cost 2.07266666666667
Sp 2.66666666666667 2.666666667 2.666666667 2.6666667

1200
 2.072666667

932700 Production 450000 900000 9,000,000

270000
 1008

Packs
m 12 37500
days 26 1442
hours 8 180
min 60 3

KG rate 320
 Capital Expenditure
Electrical & Civil (500 sq.ft.) 20,000.00
Agarbatti making Machine 130,000.00
Driyer,Plastic Desks, Patla, Kadai, spoons, 65,000.00
measuring glass, tin trays, aluminium vessels,
blow lamp stove, weighing balance, jars,
aluminium

Total capital expenditure 215,000.00

Working capital 97,791.67
Total project cost 312,791.67 312,791.67

1.       Estimated Annual Production of Agarbatti ((Value in ‘000)

SI. No. Particulars Capacity Rate Total Value
(NO.OF.PKT.)
1 Agarbatti (1000 sticks in packet) 30000 75 2250000
TOTAL TOTAL 30000 75 2250000

Raw Material 60000

Wages (Skilled & Unskilled) 32000
Administrative Expenses 2000
Miscellaneous Expenses 1000
Depreciation 1792 2791.666667
Insurance 1000
97,792

MEANS OF FINANCE
Sr. No. Particulars Rs. (lakhs)
1 Promoter's contribution 93,838
2 Bank Finance 218,954
Total Total Finance 312,792

WORKING CAPITAL CALCULATION

Sr. No. Particulars Rs. lakhs
1 Salaries and wages 32,000.00
2 Raw material and packaging material 60,000.00
3 Utilities 5,000.00
Total Working Capital 97,000.00

70% 90% 100%

Sr.No. Particulars Year 1 Year 2 Year 3

(A) Sales Realization perannum 1,575,000 2,025,000 2,250,000
(B) Cost of Production
1 Raw material per annum 504,000 648,000 720,000
2 Utilities 60,000 60,000 60,000
3 Salaries 384,000 384,000 384,000
4 Repairs and maintenance 18,000 18,000 18,000
5 Selling and Transportation expenses (3% ) 47,250 47,250 47,250
6 Administrative Expenses(other expenses) 24,000 24,000 24,000
Total Cost of Production 1,037,250 1,181,250 1,253,250
(C) Profit before interest &depreciation 537,750 843,750 996,750
7 Depreciation 21,500 21,500 21,500
(D) Profit Before term loan and tax 516,250 822,250 975,250
8 Interest on term loan(11%) 24,085 24,085 24,085
(E) Profit before tax 492,165 798,165 951,165
9 Tax (30%) - 239,450 285,350
(F) Total Profit 492,165 558,716 665,816
 30,000

100% 100%

Year 4 Year 5
2,250,000 2,250,000

720,000 720,000
60,000 60,000
384,000 384,000
18,000 18,000
47,250 47,250
24,000 24,000
1,253,250 1,253,250
996,750 996,750
21,500 21,500
975,250 975,250
24,085 24,085
951,165 951,165
285,350 285,350
665,816 665,816