Detailed Project Report
Siras Engineering Pvt. Ltd.
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TABLE OF CONTENTS
1
EXECUTIVE SUMMARY .................................................................................................................. 1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
1.10
1.11
PROPOSED PROJECT..................................................................................................................... 6
2.1
2.2
2.3
2.3.1
2.3.2
2.3.3
2.4
2.5
2.6
2.7
2.8
INTRODUCTION .......................................................................................................................... 1
THE PROJECT............................................................................................................................. 1
PRODUCT .................................................................................................................................. 1
LOCATION ................................................................................................................................ 1
PROJECT COST AND MEANS OF FINANCE ................................................................................. 2
KEY FACTORS OF PROJECT FOR DEBT ........................................................................................ 2
M ANAGEMENT .......................................................................................................................... 3
CAPITAL STRUCTURE .................................................................................................................. 4
NET WORTH OF PROMOTERS ...................................................................................................... 4
PROJECTED FINANCIALS ............................................................................................................ 5
SENSITIVITY ANALYSIS ................................................................................................................. 5
RAW M ATERIAL ......................................................................................................................... 6
M ARKETING ARRANGEMENTS- ................................................................................................... 6
INFRASTRUCTURE ........................................................................................................................ 6
Land and Building.......................................................................................................... 6
Water................................................................................................................................. 6
Electricity .......................................................................................................................... 7
PLANT AND M ACHINERY ........................................................................................................... 7
M ANPOWER.............................................................................................................................. 7
PROJECT IMPLEMENTATION SCHEDULE ...................................................................................... 8
M AJOR STATUTORY APPROVALS ............................................................................................... 8
INDUSTRY ANALYSIS ................................................................................................................... 8
RISK & SWOT ANALYSIS .............................................................................................................. 11
3.1
RISK ANALYSIS & MITIGATION MECHANISM............................................................................. 11
3.2
SWOT ANALYSIS..................................................................................................................... 12
3.2.1
Strengths:........................................................................................................................ 12
3.2.2
Weakness: ...................................................................................................................... 12
3.2.3
Opportunities: ............................................................................................................... 12
3.2.4
Threats:............................................................................................................................ 12
PROFITABILITY PROJECTIONS.................................................................................................... 13
CONCLUSION & RECOMMENDATIONS.................................................................................. 14
Detailed Project Report
Siras Engineering Pvt. Ltd.
1
1.1
EXECUTIVE SUMMARY
Introduction
Siras Engineering Pvt. Ltd. was incorporated on 23/03/2015 vide CIN No.
U29253PN2015PTC154447. Its registered office is at Flat No. I-1104, Greens
Society, Thergaon, Chinchwad, Pune, Maharashtra with an objective to set up
an Integrated Machining Shop of Forging and Casting material.
Company promoted by following Directors.
Mr. Sadanand Nilkanth Patil
Mr. Parthasarthy Venkateshwaralu
Mr. Kaustubh Avinash Palekar
1.2
The Project
Siras Engineering Pvt. Ltd. proposes to set up a Precision Machining Shop to
Manufacture components for Hydraulic, Industrial and automotive customers.
Capacity of 50,000 pcs per year, Production hours of 25,000 Hrs, total tonnage
of 500 MT at 148/1-E, Next to Rinder, Om Gurudev Industrial Estate, Mahalunge,
Chakan, Pune 410501.
1.3
Product
Hydraulic industry complex core casting and machining valve bodies,
port blocks and housing.
1.4
Passenger car/ heavy duty turbine bearing housing.
Drive train components to heavy duty and passenger cars.
Assembly products for Industrial Market segment.
Location
The proposed project site is located Plot no. 148/1-E, Next to Rinder, Om
Gurudev Industrial Estate Mahalunge, Chakan, Pune 410501.
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1.5
Siras Engineering Pvt. Ltd.
Project Cost and Means of Finance
The total project cost is estimated at Rs. 285 Lakh, which is proposed to be
funded at a debt equity ratio of 60:40 with equity of Rs. 114 Lakh and Term
debt of Rs. 171 Lakh.
Project Cost
Particulars
Amount
% of Total Cost
Plant and Machinery
185.00
71.15%
Other Fixed Assets
40.00
15.38%
Preliminary and Pre Operative Expenses
5.00
1.92%
Margin Money for Working Capital
30.00
11.54%
260.00
100%
Promoter's Contribution
104.00
40%
Term Loan from Banks
156.00
60%
260.00
100%
TOTAL
Means of Finance
TOTAL
1.6
Key Factors of Project for Debt
Project Cost
Rs 260.00 Lakh
Financing Plan
Term Debt and Equity in the ratio of 60:40
Facility
Term Debt: Rs 156.00 Lakh
Working Capital Loan -79.00 Lakh
Moratorium
Six (6) months from COD
Repayment
7 years
Security for Term
The debt shall be secured by:
Debt
1. First charge by way of mortgage of all Assets of the
Project.
2. First charge on all current assets.
3. Additional Collateral security - 70% of total Debts
4. Personal Guarantee of Directors (Net Worth 3.00 Cr)
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Detailed Project Report
1.7
Siras Engineering Pvt. Ltd.
Management
Mr. Sadanad Patil, age 48 years, is a Production Engineering Graduate from
University of Marathwada, Aurangabad with 3rd Rank, Having 27 years of
Industry Experience.
He implemented over 100 operations in Bajaj Auto Ltd. Hands on working for
Tool Design and Manufacturing and extended this work in Machine tool Design
and Assembly.
He also has commercial expertise in procurement of Forging and Machining
Commodity. He successfully set up the Export Operations at Badve Group. He
added the customers like INGERSOLL RAND, FICOSA, GE, BROSE, FAURECIA,
VOLVO, FIAT and HONDA.
He set up a Joint venture with Cellino group Italy
for Badve . He also executed 4 Green field project of Badve group.
Mr. Venkat Parthasarthy, age 40 years, is an Engineering graduate from PSG
College of Technology and MBA from Iowa State University (USA). He has
worked for 15 years with Major Corporate in USA (Eaton, Case and New
Holland and Mercury Marine) in capacity of Global Purchasing Head. In his last
assignment, Mr. Parthasarthy, turned around a sick Industry (Precision Machine,
USA) within 2 years, currently the organization is making around 100 crores
turnover and with a healthy margin of 15%. Mr. Parthasarthy have network
contact with major OEMs. He is stationed in USA, he will be leading the
marketing activities of Siras Engineering in USA, and this will be a major strength
for the company.
Mr. Kaustubh Palekar age 42 years, is a PGDBM from IBS Bangalore, with over
21 years of experience in manufacturing industry, including 10+ years of P&L
management, and business development, particularly in the Automobile,
construction equipment, mining and Farm Equipment sector.
He has the proficiency in technical and commercial aspects of setting up
projects from conception to completion. Operational expertise in supply chain,
including procurement, across multiple plants and locations - process
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Detailed Project Report
Siras Engineering Pvt. Ltd.
efficiency improvement through six sigma and lean, localization, outsourcing,
automation and ERP implementation.
Skilled at team management, talent development and resource optimization
with focus on quality deliverable and cost reduction.
1.8
Capital Structure
Presently the authorized and paid up capital of company is 1.00 Lacs which will
be increased upto 250 Lacs the extent of projected equity before getting term
loan sanction / disbursement. The shareholding pattern of Company is as on
date, is as under:
S. No.
Name of the Share Holder
% of Share Holding
1.
Mr. Sadanand Nilkanth Patil
25%
2.
Mr. Parthasarthy Venkateshwaralu
25%
3.
Mr. Kaustubh Avinash Palekar
25%
4.
Mr. Rajesh Rawoor
25%
Total
1.9
Net worth of Promoters
The net worth of the promoters as on 31st March 2014 is as follows:
S. No.
1.
Name of the Share Holder
Mr. Sadanand Nilkanth Patil
Net Worth (Lakh)
125.00 Lacs
2.
Mr. Parthasarthy Venkateshwaralu
50.00 Lacs
3.
Mr. Kaustubh Avinash Palekar
75.00 Lacs
4.
Mr. Rajesh Rawoor
200.00 Lacs
Total
400.00 Lacs
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Detailed Project Report
Siras Engineering Pvt. Ltd.
1.10 Projected Financials
The projected profitability statement of the project is as given below:
(Rs. Lakhs)
Particulars
1st Year
2nd Year
3rd Year
4th Year
5th Year
6th Year
7th Year
550
577.5
606.38
636.69
668.53
701.95
737.05
Profit Before Tax
41.54
49.1
56.87
64.9
73.13
81.61
90.37
Profit After Tax
33.23
38.39
42.06
46.14
50.56
55.31
60.41
6%
7%
7%
7%
8%
8%
8%
1.55
1.71
1.87
2.06
2.3
2.61
3.01
Sales
NP Ratio
DSCR
IRR
21.52%
1.11
Sensitivity Analysis
Particulars
Average DSCR
IRR
Actual
2.07
21.52%
5% Reduction in selling price
1.18
4.09%
5% Increase in variable cost
1.33
7.26%
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Detailed Project Report
Siras Engineering Pvt. Ltd.
PROPOSED PROJECT
Siras Engineering Pvt. Ltd. proposes to set up a Precision Machining Shop to
Manufacture components for Hydraulic, Industrial and automotive customers.
Capacity of 50,000 pcs per year, Production hours of 25,000 Hrs, total tonnage
of 500 MT at 148/1-E, Next to Rinder, Om Gurudev Industrial Estate, Mahalunge,
Chakan, Pune 410501.
2.1
Raw Material
Main Raw material is the Aluminum and Cast Iron which are easily available
across:
The major purchase of Aluminum will be from Hindalco & Jindal.
The purchase of cast Iron will be mainly from Indo Shell Mould Ltd,
Coimbatore due to quality approval of final product.
2.2
Marketing arrangements-
Siras Engineering has made the strategic tie-up with ABB Ltd, Eton Ltd. and
Stewart Mfg for the machining job / business. The complete production
capacity will be utilized above companies, and 80% production will export.
2.3
Infrastructure
2.3.1 Land and Building
Company has taken a constructed shed measuring 4000 Sqft on rental to run
the workshop. After competition of construction on its own MIDC land
company will shift the plant and machinery there.
This shed is sufficient to accommodate plant and machinery, Raw material and
Finish Goods godown, stores, security, canteen and laboratory etc.
2.3.2 Water
Water requirement in the project will be very less. Total consumption for the
entire production process will 3000 Ltr/ Day.
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Siras Engineering Pvt. Ltd.
2.3.3 Electricity
The existing rented premises has MSEB approved connection, Demand of 100
KVA will be increased by MSEB before machines are installed. The rented
permises is located in Chakan area, where major OEMs are located,
government ensured uninterrupted power supply.
2.4
Plant and Machinery
The Company is process to purchase the following plant and machinery from
M/s Surin Automotive Pvt. Ltd, Pune.
Machine Description
Make
Horizontal Machining center
4000
Horizontal Machining center
Vertical Machining Center 410 A-2 with 4th Axis
Vertical Machining center
with pallet changer
Vertical Machining center
with pallet changer
2.5
Capacity
Mazak
Power
consumption
30KW
5000 hrs
Tonnage
Per Year
150
BFW
30 KW
5000 hrs
150
Mazak
18.5 KW
5000 hrs
75
BFW
18.5 KW
5000 hrs
50
BFW
18.5 KW
5000 hrs
50
Manpower
The Company proposes to recruit well-trained staff for the proposed project.
The total of 20 personnel will be required as follows for operation of plant in
direct, administration and other categories. The skilled operator must have
necessary experience and adequate qualification.
Category
Nos
Manager
Engineers
supervisors
Skilled Labour
Administrative Staf
Total
12
2
20
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Detailed Project Report
2.6
Siras Engineering Pvt. Ltd.
Project Implementation Schedule
Since Company will install all machines on readymade rented premises which
is already taken, The Installation will be completed by Oct-15 and commercial
production could be started in Nov-15.
2.7
Major Statutory Approvals
As per the information provided by the Company, the status of major statutory
approvals required for the implementation of the project is given below:
Approval/ Consent
Agency
Status
SSI Certification
DIC (Govt. of Maharashtra)
Applied
Pollution Clearance
NA
NA
Electricity
Maharashtra State Electricity Applied
Board
Central excise & Sales tax Excise Department and Sales Received
registration
Tax Department
2.8
Industry Analysis
India Market
Revenue in the Machine Shop Services industry has experienced robust growth
during the five years to 2015. As the industry's major markets, including
Passenger Auto sector, Commercial Transportation manufacturing, picked up,
so did revenue. During the five years to 2020, operators will devote further
resources to satisfying growing demand from manufacturers in industries like
automobile manufacturing, commercial transport manufacturing and metal
forging.
India stands 14th in production and 10th in the consumption of machine tools
in the world as per the 2015 Gardner Business Media survey. The country is set
to become a key player in the global machine tools industry and is likely to see
substantial high-end machine tool manufacturing. With emphasis on Make in
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Detailed Project Report
Siras Engineering Pvt. Ltd.
India and manufacturing growth, for which the machine tools sector serves as
the mother industry.
The Indian Machine tool Industry has around 1000 units in the production of
machine tools, accessories/attachments, subsystems and parts. Of these,
around 25 in the large scale sector account for 70 percent of the turnover and
the rest are in the SME sector of the industry. Approximately, 75 per cent of the
Indian machine tool producers are ISO certified.
Ref: Indian Machine Tool Manufacturing Association (www. imtma.in)
The industry can be segmented in several ways:
CNC
Conventional
Forming
Rs. 126 Cr
RS. 336 Cr
Cutting
Rs. 3295 Cr
Rs. 473 Cr
Indian Machine Tool Industry 2013-14 & 2014-15 (INR Crores)
2013-14
2014-15
Growth Rate
Production
3481
4320
22%
Exports
246
280
13%
Imports
4672
5317
14%
Consumption
7907
9358
18%
The Indian machine tools sector offers several opportunities for investment.
Given the current gap between demand and supply, there is a clear need for
adding capacities in this sector. The industry is moving towards increasingly
sophisticated CNC machines, driven by demand from key user segments, such
as, automobiles and consumer durables, Aerospace etc.
Machine tool manufacturers need to develop capabilities to cater to this
demand and investments in this area could yield long term benefits.
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Siras Engineering Pvt. Ltd.
US machine tool industry is highly fragmented with over 20,000 independently
owned business units. Total industry sales revenue is about $40 Billion with top 50
players make only 10% of the total revenue.
Customers are OEMs that procure components from suppliers and further
process/assemble and convert to final product. OEMs are focusing on core
competence and divesting noncore activities. OEMs are allocating capital
investment to R&D, and core competence activities.
OEMs are outsourcing most of the machining work. Machined components
are mostly leveraged commodity, with many players in the market; it is suitable
for the buyer to outsource. Buyers have more buying power.
Market is in need of suppliers with the following, Engineering expertise, global
manufacturing foot print, supply chain expertise, warehouse, and vertical
integration of foundry.
Global Analysis
China currency valuation (appreciated over 30%) and local growth spurred for
more local consumption. It is forecasted that china growth will predominantly
come from local consumption.
OEMs are shifting the manufacturing base. India will play a major role in
absorbing the work. New government of India is focusing on making India as
one of the low cost manufacturing hub. Government is planning to do the
following
Ease of doing business
Tax reform
Infrastructure
Incentive for foreign investment (especially in manufacturing).
Reduce interest rate.
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Detailed Project Report
3
3.1
Siras Engineering Pvt. Ltd.
RISK & SWOT ANALYSIS
Risk Analysis & Mitigation Mechanism
Type of Risk
Risk
Mitigation Measures
Category
Project Cost &
Low
Time Overrun
The project cost has been estimated based on the final
quotations and the estimates made by the Company
on basis of its promoters experience same field.
Raw Material
Low
Availability
The major raw material required for the proposed
facilities is Cast Iron and Aluminum. These materials
can be procured from reputed manufacturer Jindal,
Hindalco and foundries in Coimbatore and Kolhaphur ,
Cost Risk
Low
For the purpose of financial analysis, the raw material
and other costs have been assumed based on the
average market prices. Moreover, the sensitivity
analysis at 5% increase in variable costs shows that the
Company can withstand reasonable adverse
fluctuations in the cost levels.
Off Take Risk
Low
These machines can be used for various customers,
only change required is develop the program to
machine the component.
Price Risk
Medium
Raw material escalation is a pass through to customers,
this is done through Long Term Agreement.
Funding Risk
Low
Promoters already arranged 100% of the equity
contribution
and
ready
to
bring
upfront
before
sanctioning the loans. The project is financially viable
with a comfortable Avg. DSCR of 2.07.
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Detailed Project Report
3.2
Siras Engineering Pvt. Ltd.
SWOT Analysis
3.2.1 Strengths:
High growth rate
High Profitability and revenue due to upgraded Technology and low
labor cost
Promoter of the company is a highly experienced and qualified person.
They also have sound financial background.
3.2.2 Weakness:
Investments in research and development
Future competition
3.2.3 Opportunities:
New acquisitions
New markets
Growing demand
3.2.4 Threats:
Only prominent threat is 3D printing technology, but these will be a
threat for shops that are specializing in 1 to 5 pcs range. Hence 3D is not
suitable for mass production.
As could, be seen from the above, the strengths and opportunities are more.
The weaknesses and threats can be surmounted by adopting appropriate
managerial strategy / business tactics.
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Detailed Project Report
4
Siras Engineering Pvt. Ltd.
PROFITABILITY PROJECTIONS
The following Annexure listed below will provide the complete financial model
of the project:
Annexure -1
Project cost estimate
Annexure -2
Projected Profitability Statement
Annexure -3
Projected Balance sheet
Annexure -4
Term Loan Repayment Schedule
Annexure -5
Projected Cash flow statement
Annexure -6
Projected Working Capital Requirement
Annexure -7
Key Financial Indicator, Ratio, Sensitivity Analysis
Annexure -8
Income Tax Calculation
Annexure -9
Depreciation Calculation
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Siras Engineering Pvt. Ltd.
CONCLUSION & RECOMMENDATIONS
The project is technologically and economically viable. There is no scarcity for
raw material.
Overall growth outlook for the industry appears positive. Some of the factors
that would drive growth in the industry are:
1) Low cost operations
2) Research-based processes
3) Improvements in API
4) Availability of skilled manpower.
Overall the project is well conceived and conceptualized, with sound
commercial viability. The expected financial returns are quite satisfactory.
The project is being implemented by promoters having requisite background
and experience and with employment of experienced professionals, experts
and consultants. All perceived risks have adequate safeguards.
Thus, based on the foregoing analysis and suitable mitigation of risks
enumerated in the risk analysis, the proposed project of Rs. 285.00 Lakhs by
M/s Siras Engineering Pvt. Ltd. is viewed as financially viable and bankable.
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Total Project Cost and Mean of Finance
Annexure -1
Rs. In Lakhs.
PROJECT COST
SL No
Particulars
Amount
% of Total Cost
Land
0.00
0.00%
Civil and Building Construction
0.00
0.00%
2
4
5
6
7
8
Site Development
0.00
Plant and Machinery
Other Fixed Assets
Pre Operative and Premilary Expenses
Interest During Construction
Margin Money for Working Capital
0.00%
185.00
71.15%
5.00
1.92%
40.00
0.00
15.38%
0.00%
30.00
260.00
100.00%
Promoter's Contribution
104.00
40%
TOTAL MEANS OF FINANCE
260.00
100%
TOTAL COST OF THE PROJECT
11.54%
MEANS OF FINANCE
1
2
Term Loan from Banks
156.00
60%
Annexure -2
Projected Profitability Statement
Particulars
Total Sales
1st Year
2nd Year 3rd Year
4th Year
5th Year
6th Year
In Lacs
7th Year
550.00
577.50
606.38
636.69
668.53
701.95
737.05
Cost of Raw Material
330.00
346.50
363.83
382.02
401.12
421.17
442.23
Power
27.50
28.88
30.32
31.83
33.43
35.10
36.85
Cost of Production.
Consumables (Stores & Spares )
Man Power Cost
Repair and Maintinance Cost
Selling and admin Expenses
22.00
55.00
11.00
11.00
23.10
57.75
11.55
11.55
24.26
60.64
12.13
12.13
25.47
63.67
12.73
12.73
26.74
66.85
13.37
13.37
28.08
70.20
14.04
14.04
29.48
73.71
14.74
14.74
Rent of WorkShop
Total Cost of Production
6.00
462.50
6.00
485.33
6.00
509.31
6.00
534.45
6.00
560.88
6.00
588.63
617.75
EBDIT
87.50
92.17
97.07
102.24
107.65
113.32
119.30
Less : Interest on Term Loan
19.56
16.55
13.54
10.53
7.52
4.51
1.50
Less : Depreciation
13.98
45.86
13.98
53.13
13.98
9.18
36.68
12.26
0.00
Less : Interest on CC
Profit Before Tax
Provision for Taxation
Profit After Tax
Less Dividend
Retained Earnings
Cumulative Retained Earnings
8.11
36.68
36.68
8.52
76.29
13.98
10.87
68.35
13.98
10.35
60.61
13.98
9.86
84.48
92.95
40.87
16.11
44.50
19.84
48.51
23.44
52.85
26.98
57.51
30.47
62.48
0.00
0.00
0.00
0.00
0.00
0.00
40.87
77.55
8.94
44.50
122.05
9.39
6.00
48.51
170.56
52.85
223.41
57.51
280.92
13.98
62.48
343.40
Annexure -3
Projected Balance Sheet
Particulars
Sources of Funds
1st Year
2nd Year
3rd Year
4th Year
5th Year
6th Year
7th Year
Capital
Reserves (Cumulative PAT)
104.00
327.41
280.92
104.00
274.56
223.41
104.00
226.05
170.56
104.00
181.55
122.05
104.00
140.68
77.55
104.00
Sub Total a
36.68
104.00
384.92
447.40
Secured Term Loans
133.71
133.71
111.43
111.43
89.14
89.14
66.86
66.86
44.57
44.57
22.29
22.29
0.00
0.00
Creditors
77.98
127.75
34.62
104.50
121.67
32.97
99.52
115.88
31.40
94.78
110.36
29.90
90.27
105.10
28.48
85.97
Sub Total c
27.12
81.88
134.14
140.85
Total Sources
379.50
403.34
431.07
463.09
499.74
541.34
588.25
Gross Block
230.00
160.12
83.86
230.00
174.09
69.88
230.00
188.07
55.91
230.00
202.05
41.93
230.00
216.02
27.95
230.00
Net Block
13.98
230.00
146.14
132.16
Inventories (Finished Goods)
45.21
47.47
49.84
52.33
54.95
57.69
60.58
Sundry Debtors
67.81
71.20
74.76
78.50
82.42
86.54
90.87
Sub Total b
Current Liabilities
Working Capital (CC)
343.40
36.35
Application of Funds
Fixed Asset
Less Dep. To date
Current Asset
Inventories (RM)
Other Current Assets
Cash & Bank Balances
Sub Total: Current Assets
Total Applications
27.12
11.00
12.34
163.48
379.50
28.48
11.55
42.60
201.29
403.34
29.90
12.13
31.40
12.73
32.97
13.37
34.62
14.04
97.84
36.35
14.74
76.37
114.04
155.91
202.31
253.55
431.07
463.09
499.74
541.34
588.25
243.00
289.00
339.62
395.20
456.08
Annexure -4
REPAYMENT SCHEDULE
Particulars
Opening Balance
Addition
Total
Repayment
Closing Balance
Interest @13.5%
1st Year
2nd Year
3rd Year
4th Year
5th Year
6th Year
7th Year
0.00
133.71
111.43
89.14
66.86
44.57
22.29
156.00
133.71
111.43
89.14
66.86
44.57
22.29
133.71
111.43
89.14
66.86
44.57
22.29
0.00
156.00
22.29
19.56
0.00
22.29
16.55
0.00
22.29
13.54
0.00
22.29
10.53
0.00
22.29
7.52
0.00
22.29
4.51
0.00
22.29
1.50
Annexure -5
CASH FLOW STATEMENT
Particulars
PAT As per P&L Account
Depreciation
Increase in a) Capital
b) Secured Term Loans
c) Cash Credit Facility
Increase in Current Liability
Total of Sources
1st Year
2nd Year
3rd Year
4th Year
5th Year
6th Year
7th Year
36.68
40.87
44.50
48.51
52.85
57.51
62.48
156.00
13.98
104.00
77.98
27.12
415.76
Project Capital Expenses
225.00
Repayment of Term Loan
22.29
Preliminary Expenses
Increase in Fixed Assets
Increase in Current Asset
Total Applications
Opening Cash Balance
Cash Surplus/Deficits
Closing Cash Balance
5.00
0.00
13.98
-
3.90
1.36
13.98
-
4.09
1.42
13.98
-
4.30
1.50
13.98
-
4.51
1.57
13.98
-
4.74
1.65
13.98
-
4.98
1.73
60.10
63.99
68.28
72.91
77.87
83.17
22.29
22.29
30.22
30.62
31.03
31.47
31.93
12.34
12.34
30.26
42.60
33.77
76.37
114.04
155.91
202.31
42.60
76.37
37.67
114.04
41.87
155.91
9.18
22.29
29.84
12.34
8.75
22.29
7.56
8.33
22.29
151.14
403.42
7.94
22.29
46.40
202.31
9.64
51.24
253.55
Annexure -6
COMPUTATION OF WORKING CAPITAL REQUIREMENTS
Particulars
Stock of raw materials
Finished goods
Sundry Debtors
Total Current Assets
Sundry Creditors
Total Current Liabilities
Holding
level
(days)
30
30
45
30
Working capital gap
Less 25% of current assets
MPBF
Utilisation
ROI
Interest
1st Year
27.12
45.21
67.81
13%
28.48
47.47
71.20
3rd Year
29.90
49.84
74.76
4th Year
31.40
52.33
78.50
5th Year
32.97
54.95
82.42
6th Year
34.62
57.69
86.54
7th Year
36.35
60.58
90.87
140.14
147.14
154.50
162.23
170.34
178.85
187.80
27.12
28.48
29.90
31.40
32.97
34.62
36.35
27.12
28.48
29.90
31.40
32.97
34.62
36.35
113.01
118.66
124.60
130.83
137.37
144.24
151.45
77.98
81.88
85.97
90.27
94.78
99.52
104.50
13%
13%
35.03
80%
2nd Year
62.38
13%
8.11
36.79
65.50
13%
8.52
38.63
68.78
13%
8.94
40.56
72.22
13%
9.39
42.58
75.83
13%
9.86
44.71
79.62
10.35
46.95
83.60
10.87
Sl No
Particulars
Net Profit Ratio
Current Ratio
2
4
5
6
7
8
EBDIT/Sales
Debt & Equity Ratio
FACR
TOL/TNW
Debtors Days
Crediors Days
1st Year
6.67%
15.91%
1.56
0.95
1.62
1.70
45
30
Key Financial Indicators
Annexure -7
2nd Year
3rd Year
4th Year
5th Year
6th Year
7th Year
16.0%
16.0%
16.1%
16.1%
16.1%
16.2%
7.08%
1.82
0.61
1.81
1.22
45
30
7.34%
2.10
0.39
2.11
0.91
45
30
7.62%
2.38
0.24
2.60
0.69
45
30
7.91%
2.66
0.14
3.59
0.53
45
30
8.19%
2.95
0.06
8.48%
3.24
0.00
6.56
#######
45
45
0.41
30
0.31
30
Annexure -8
COMPUTATION OF INCOME TAX AS PER INCOME TAX ACT 1961
Sl No
Particulars
1st Year
2nd Year 3rd Year
4th Year
5th Year
6th Year
7th Year
Profit Before Taxes
45.86
53.13
60.61
68.35
76.29
84.48
92.95
Total
59.83
67.11
74.59
82.33
90.27
98.46
106.93
0.00
0.00
2
4
5
6
7
8
9
10
11
Add Depreciation on SLM
Less Depreciation on WDV
Less: Unabsorbed Dep
13.98
34.50
0.00
13.98
29.33
0.00
13.98
24.93
0.00
13.98
21.19
0.00
13.98
18.01
0.00
13.98
15.31
13.98
13.01
Balance
25.33
37.78
49.66
61.14
72.26
83.15
93.92
Profit Taxable as per MAT
45.86
53.13
60.61
68.35
76.29
84.48
92.95
Taxable at Normal rates
Normal tax @32.445%
MAT @ 20.00775%
Income Tax Payable
25.33
8.22
9.18
9.18
37.78
12.26
10.63
12.26
49.66
16.11
12.13
16.11
61.14
19.84
13.68
19.84
72.26
23.44
15.26
23.44
83.15
26.98
16.90
26.98
93.92
30.47
18.60
30.47
Annexure -9
DEPRECIATION SCHEDULE
Under the Companies Act
Particulars
Plant & Machinery
Gross Block
Additions/Adjustment
Depreciation brought forward
Depreciation for the year
5.28%
Total Depreciation
Net Block
Other Fixed Assets
Gross Block
Additions/Adjustment
Depreciation brought forward
Depreciation for the year
9.75%
Total Depreciation
Net Block
Total Gross Block
Additions/Adjustment
Depreciation for the year
Additions/Adjustment
Total
Depreciation for the year
Closing WDV
15%
Opening WDV
Total
Depreciation for the year
Closing WDV
Total Depreciation for the year
0.00
9.98
19.96
29.94
39.92
49.90
59.88
189.00
9.98
9.98
0.00
189.00
9.98
19.96
0.00
189.00
9.98
29.94
15%
0.00
189.00
9.98
39.92
0.00
189.00
9.98
49.90
0.00
189.00
9.98
59.88
0.00
189.00
9.98
69.85
179.02
169.04
159.06
149.08
139.10
129.12
119.15
41.00
41.00
41.00
41.00
41.00
41.00
41.00
0.00
4.00
8.00
11.99
15.99
19.99
23.99
41.00
4.00
4.00
0.00
41.00
4.00
0.00
41.00
4.00
0.00
41.00
4.00
41.00
4.00
41.00
4.00
41.00
4.00
11.99
230.00
230.00
230.00
230.00
230.00
230.00
230.00
13.98
27.95
41.93
55.91
69.88
83.86
97.84
0.00
230.00
13.98
202.05
0.00
230.00
13.98
188.07
2nd Year
3rd Year
0.00
230.00
13.98
174.09
4th Year
21.01
0.00
230.00
13.98
160.12
5th Year
23.99
0.00
8.00
25.01
19.99
0.00
33.01
29.01
15.99
0.00
37.00
Under the Income Tax Act
Office Equipments
Additions/Adjustment
189.00
Dep rate 1st Year
Opening WDV
7th Year
189.00
216.02
Plant and Machinery
6th Year
189.00
13.98
Net Block
5th Year
189.00
230.00
Total Accumulated Depreciation
4th Year
189.00
0.00
Total
3rd Year
189.00
0.00
Total
2nd Year
189.00
0.00
Total
PARTICULARS
1st Year
17.02
0.00
230.00
13.98
146.14
6th Year
27.98
13.02
0.00
230.00
13.98
132.16
7th Year
189.00
160.65
136.55
116.07
98.66
83.86
71.28
28.35
24.10
20.48
17.41
14.80
12.58
10.69
0.00
189.00
160.65
0.00
160.65
136.55
0.00
136.55
116.07
0.00
116.07
98.66
0.00
98.66
83.86
0.00
83.86
71.28
0.00
71.28
60.59
41.00
34.85
29.62
25.18
21.40
18.19
15.46
6.15
5.23
4.44
3.78
3.21
2.73
2.32
0.00
41.00
34.85
34.50
0.00
34.85
29.62
29.33
0.00
29.62
25.18
24.93
0.00
25.18
21.40
21.19
0.00
21.40
18.19
18.01
0.00
18.19
15.46
15.31
0.00
15.46
13.14
13.01
