Contents Table

Contents
Annexure 1 - Estimated cost of the project
Annexure 2 - Means of Finance
Annexure 3 - Complete Estimate of Plant and Machinery
Annexure 4 - Estimated Cost of Production
Annexure 5- Projected balance sheet
Annexure 6 - requirement of Power and Fuel
Annexure 8 - Details of Manpower
Annexure 9 - Computation of Depreciation
Annexure 10 - Calculation of Income tax
Annexure 11- Break even analysis (At maximum capacity utilization)
Annexure 13 - Repayment schedule
Annexure 11 - Cash flow statement
Sales Budget
DPR without subsidy

Annexure 1 - Estimated cost of the project

Estimated cost of project

Grand Total (in
Sr. No. Particulars lakhs)
1 Plant and Machinery (indegenous)
(a) Combine harvester 24.00
Total 24.00

2 Miscellanoeus Fixed Assets

(a) Cost -

3 Working Capital Margin

4 Preliminary Expenses
(a) Security Deposit -
Total

5 Pre-Operative Expense
(for 6 months upto the date od commencement of
commercial production)
(a) Establisment and Travelling and Other Expenses -
(b) Legal and Misc Expense -
Total -

Total Cost of Project 24.00

Annexure 2 - Means of Finance

Sr. No. Item Grand Total (in lakhs)

1 Promoter's equity 2.40
2 Eligible Assistance -
3 Term Loan 21.60 0.375
4 CC Limit -
Total 24.00
Annexure 3 - Complete Estimate of Plant and Machinery

1. Plant and machinery Units Amt

1 Combine harvester 1 2,400,000
2 Servicing tools 0
3 Tools for repairing of machines 0 -
Total Plant and Machinery 2,400,000

Total fixed Assets 2,400,000

Annexure 4 - Estimated Cost of Production

Year ending March 31st

Sr. No Description
I II III IV V
No of Working months 12 12 12 12 12

Fuel expense 698,250 748,125 798,000 847,875 897,750

Insurance cost @ 2% of purchase cost 48,000 48,960 49,939 50,938 51,957
Running and Manintenance expense @2% of Rentals 63,000 70,560 79,380 83,790 83,790
Cost of Production 809,250 867,645 927,319 982,603 1,033,497
Sub Total 809,250 867,645 927,319 982,603 1,033,497

Administrative salaries and wages 441,600 468,096 496,182 525,953 557,510

Miscellaneous expense - semi fixed 65,750 67,640 69,845 70,948 70,948
Total 507,350 535,736 566,027 596,900 628,457

Expenses 1,316,600 1,403,381 1,493,346 1,579,503 1,661,954

Expected Rental revenue 3,150,000 3,528,000 3,969,000 4,189,500 4,189,500
Gross Profit 1,833,400 2,124,619 2,475,654 2,609,997 2,527,546

Financial expense
Interest on Term Loan 189,266 167,795 144,348 118,743 90,782
Interest on WC Loan - - - - -
Total 189,266 167,795 144,348 118,743 90,782

Operating profits (PBT) 1,644,134 1,956,824 2,331,306 2,491,254 2,436,764

Preliminary Expense - - - - -
depreciation 360,000 306,000 260,100 221,085 187,922
Net Profit before Tax 1,284,134 1,650,824 2,071,206 2,270,169 2,248,841
Income Tax 385,240 495,247 621,362 681,051 674,652
Profits after Tax 898,894 1,155,577 1,449,844 1,589,118 1,574,189
Distribution of profits (90%) 809,005 1,040,019 1,304,860 1,430,206 1,416,770
Profit transfer to balance sheet 89,889 115,558 144,984 158,912 157,419
Annexure 4- Projected balance sheet

Year ending March 31st

Sr. No Description
I II III IV V
A Asset
1 Fixed Capital expenditure
Gross Block 2,400,000 2,040,000.00 1,734,000.00 1,473,900.00 1,252,815.00
Less- Depreciation 360,000 306,000.00 260,100.00 221,085.00 187,922.25
net Block 2,040,000 1,734,000.00 1,473,900.00 1,252,815.00 1,064,892.75
2 Sundry debtors 157,500 176,400 198,450 209,475 209,475
3 Cash/ bank balance 230,176 388,829 505,361 581,077 604,084
Total assets 2,427,676 2,299,229 2,177,711 2,043,367 1,878,451

B Liabilities
1 Capital 240,000 329,889 445,447 590,432 749,343
Add- Profit 89,889 115,558 144,984 158,912 157,419
Less- Drawings - - - - -
Closing capital 329,889 445,447 590,432 749,343 906,762
2 term Loan 1,926,682 1,671,893 1,393,657 1,089,817 758,015
3 Working capital - - - - -
4 Creditors 171,105 181,889 193,622 204,207 213,674
Total liabilities 2,427,676 2,299,229 2,177,711 2,043,367 1,878,451

Current Ratio
Current Assets 387,676 565,229 703,811 790,552 813,559
Current Liabilities 171,105 181,889 193,622 204,207 213,674
Ratio 2.26572274 3.107552553 3.634972421 3.871325525 3.807472981
Average 3.337409244

Debt Equity ratio

Debt 1,926,682 1,671,893 1,393,657 1,089,817 758,015
Equity 329,889 445,447 590,432 749,343 906,762
Ratio 5.840388208 3.753292318 2.360404449 1.45436217 0.835957912
Average 2.848881012

Fixed asset coverage ratio

Fixed assets 2,040,000 1,734,000 1,473,900 1,252,815 1,064,893
Debt 1,926,682 1,671,893 1,393,657 1,089,817 758,015
Ratio 1.058815048 1.037147638 1.057577155 1.149564995 1.404843793
1.141589726

Debt service coverage ratio

Interest on loan (TL + WC) 189,266 167,795 144,348 118,743 90,782
Instalment of loan 233,318 254,789 278,236 303,841 331,802
Total 422,584 422,584 422,584 422,584 422,584
Net operating income 1,833,400 2,124,619 2,475,654 2,609,997 2,527,546
Ratio 4.338548119 5.02768723 5.858374702 6.176282823 5.9811714
Average 5.476412855

TOL/TNW Ratio
Total Out Side Liabilities 2,097,787 1,853,782 1,587,279 1,294,024 971,689
Total Net Worth 240,000 329,889 445,447 590,432 749,343
Ratio 8.740779583 5.619404503 3.563339548 2.191657449 1.296721037
Average 4.282380424
Annexure 6 - requirement of Power and Fuel

Requirement of Fuel

Fuel

-For Combine harvester

Mileage 7 Litre per hour
Fuel requirement during the year 10500 Litres

Total fuel requirement 10500

Fuel cost per litre 95
Total fuel cost at 100% capacity utilization 997,500.00
itre per hour
Annexure 8 - Details of Manpower

Details of Manpower

S. No. Designation In no. Salary per person per month Annual cost
i. Machine operators 1 18,000 216,000
ii. Accountant 0 -
iii. Labour/ helper 2 7,000 168,000
iv. Security 0 -
Total 384,000

Add: benefits @ 15% 57,600

Total 441,600

Total annual wages 441,600

Annual increase in wages 6%
Total manpower 3
Annexure 9 - Computation of Depreciation

Computation of Depreciation

Sr. No. Particulars Plant and Machinery Amount in lakhs

i. Cost 2,400,000 24
ii. Pre operatives - -
iii. Contingencies - -
Total 24

Rates of Depreciation 15% Total depreciation for the year

Year 1 360,000.00 360,000.00
Year 2 306,000.00 306,000.00
Year 3 260,100.00 260,100.00
Year 4 221,085.00 221,085.00
Year 5 187,922.25 187,922.25
Year 6 159,733.91 159,733.91
Year 7 135,773.83 135,773.83
Year 8 115,407.75 115,407.75
Year 9 98,096.59 98,096.59
Annexure 10 - Calculation of Income tax

Calculation of Income Tax

Year ending March 31st

Particulars
I II III IV V VI VII VIII IX
Net profit before tax 1,644,134 1,956,824 2,331,306 2,491,254 2,436,764 2,918,125 3,058,361 2,461,060 2,420,117
Add- dep on SLM - - - - - - - - -
Sub total 1,644,134 1,956,824 2,331,306 2,491,254 2,436,764 2,918,125 3,058,361 2,461,060 2,420,117
Less- Dep on WDV 360,000 306,000 260,100 221,085 187,922 159,734 135,774 115,408 98,097
Sub total 1,284,134 1,650,824 2,071,206 2,270,169 2,248,841 2,758,391 2,922,587 2,345,652 2,322,020
Less - Deductions - - - - - - - - -
Taxable profits 1,284,134 1,650,824 2,071,206 2,270,169 2,248,841 2,758,391 2,922,587 2,345,652 2,322,020
Income tax @30% 385,240 495,247 621,362 681,051 674,652 827,517 876,776 703,696 696,606
Annexure 11- Break even analysis (At maximum capacity utilization)

Break even capacity at maximum capacity utilization

Rentals 4,200,000
Variable cost
- Running and maintenance
cost 210,000
Contribution 3,990,000
Less: fixed cost
Wages and salaries 441,600
Depreciation 360,000
Miscellaneous expense 100,000
Interest on TL 189,266
Fixed cost 1,090,866

Particulars Combine Harvester

Rental per hr for combine
harvester 2800
Running and maintenance
cost (per hr) 140
Fuel expense (per hr) 665
Miscellaneous expense (per
hr) 28
Contribution per hr 1967
Contribution margin 70.25%
Sales ratio 100.00%
Proportionate contribution 70.25% 70.25%

BEP total in Rs. 1552833.97

Combine Harvester 1552833.97
Other Machine 0.00

Total BEP % 36.97%

Annexure 13 - Repayment schedule
Repayment schedule
Amount of Loan (in lakhs) 21.60
Rate of interest 9.00%
Repayment Period (Years) 7 14 Terms
EMI ₹ 2.11

Principal instalment Interest (in

Year Terms Balance outstanding
(in lakhs) lakhs)

1 21.60 ₹ 1.14 0.97

1
2 20.46 ₹ 1.19 0.92
3 19.27 ₹ 1.25 0.87
2
4 18.02 ₹ 1.30 0.81
5 16.72 ₹ 1.36 0.75
3
6 15.36 ₹ 1.42 0.69
7 13.94 ₹ 1.49 0.63
4
8 12.45 ₹ 1.55 0.56
9 10.90 ₹ 1.62 0.49
5
10 9.28 ₹ 1.70 0.42
11 7.58 ₹ 1.77 0.34
6
12 5.81 ₹ 1.85 0.26
13 3.96 ₹ 1.93 0.18
7
14 2.02 ₹ 2.02 0.09
Annexure 11 - Cash flow statement

Particulars 0 I II III IV V
opening balance - - 230,176 388,829 505,361 581,077
Add: Capital 240,000 - - - - -
Add: Loan disbursement 2,160,000 - - - - -
Less: Purchase of asset 2,400,000 - - - - -
Add: Rentals realizations - 2,992,500 3,351,600 3,770,550 3,980,025 3,980,025
Less: Payment made to creditors of previos year - - 171,105 181,889 193,622 204,207
Add: Receipts from debtors of previos year - - 157,500 176,400 198,450 209,475
Less: Payments made for current year purchase - 1,145,495 1,221,492 1,299,724 1,375,296 1,448,280
Less: Interest payments - 189,266 167,795 144,348 118,743 90,782
- 1,657,739 2,178,885 2,709,818 2,996,174 3,027,308
Less: Income tax - 385,240 495,247 621,362 681,051 674,652
- 1,272,499 1,683,637 2,088,457 2,315,124 2,352,655
Less: Distrubutions made from profits - 809,005 1,040,019 1,304,860 1,430,206 1,416,770
- 463,494 643,618 783,597 884,918 935,885
Less: Principal repayment of loan - 233,318 254,789 278,236 303,841 331,802
Closing cash balance - 230,176 388,829 505,361 581,077 604,084

PV dicounting rate 6.00%

PVF 1 0.943396226 0.889996440 0.839619283 0.792093663 0.747258173
Inflows 2,400,000 2,992,500 3,739,276 4,335,779 4,683,836 4,770,577
PV of Inflows 2,400,000 2,823,113 3,327,943 3,640,404 3,710,037 3,564,853
Outflows 2,400,000 2,762,324 3,350,447 3,830,418 4,102,759 4,166,493
PV of Outflows 2,400,000 2,605,966 2,981,886 3,216,093 3,249,769 3,113,446

Net cash inflow - 230,176 388,829 505,361 581,077 604,084

Net Present value - 217,148 346,056 424,311 460,267 451,407 (1,824,585)
Sales Budget
Year ending March 31st
Particulars I II III IV V VI VII VIII IX
Capacity utilization 75% 80% 90% 95% 95% 100% 100% 100% 100%
Operational hrs for Combine harvester 1125 1200 1350 1425 1425 1500 1500 1500 1500
Operational hrs for other machines 0 0 0 0 0 0 0 0 0
Total operational hours 1125 1200 1350 1425 1425 1500 1500 1500 1500
Rental Revenue 3150000 3528000 3969000 4189500 4189500 4410000 4410000 4410000 4410000

Production budget
Combine harvester 1
Hours operation in a day 10 hours
Operation days in a year for Combine harvestor 150 days
Hours usage for Combine harvester for the year 1500 hours

Products Rental per hr for

combine harvester
Output 2,800.0