PROJECT AT A GLANCE

1 Name of the unit M/S CAFÉ BLISS

2 Line of activity RESTAURANT-CAFE

3 Sector MICRO- SERVICE

4 Constitution Proprietorship Unit.

5 Name & Address NO 246, 7TH CROSS, BHADRAPPA LAYOUT, NEAR G R

of Proprietor KALYANAMANTAPPA, NAGASHETTYHALLIM, BANGALORE-
560094.
MOB:8553700917

6 Address of the unit NO 5/2, 1ST FLOOR, KANSHIRAM NAGAR MAIN RAOD,
BANGALORE-560097.
GST: 29IEHPK5951P1ZH
UDYAM:UDYAM-KR-03-0474631

7 Estimates for the (Amount is Rs)

first year of operation
i Total project cost 27,10,000.00

Capital Expenditure 27,10,000.00

Working Capital 0.00

ii Promoters’ capital 7,10,000.00

iii Bank loan Sought Term Loan

20,00,000.00

Working Capital Loan

0.00
iv Total Revenue 21,06,000.00

v Net Profit after tax 2,95,971.00

vi Depreciation 4,50,000.00

vii Net Profit 14.05%

:Total
Revenue(%)
viii Average D S C R 3.22
 1. WITH REGARD TO THE PROMOTER:

He intends to establish proprietorship unit for manufacturing unit. He has

got more than 5 years’ experience in the subject line. The business
premises has been acquired on RENTAL basis. The area of the business
premises is 2500 sq ft The premises is located at the following address:
NO 5/2, 1ST FLOOR, KANSHIRAM NAGAR MAIN RAOD, BANGALORE-560097.
GST: 29IEHPK5951P1ZH
UDYAM:UDYAM-KR-03-0474631

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-2-
BASIS AND PRESUMPTIONS:

i) The cost of machinery is of particular make is as per the pro-forma

invoice.

ii) This project report is prepared on the basis of No of SHIRTS Order Available per
Month.

iii) The workers in the line are available in the local area.

iv) The rental value is based on the concerned Rental Agreement.

v) Rate of interest has been calculated @12 %.

vi) The sales and net profit will increase by 5% every year.

vii) The subject project report consists of detailed estimate for the 1 st
year of Receipt and projections for the next 6 years.

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FEASIBILITY STUDY
&
FINANCIAL ANALYSIS

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 FINANCIAL ASPECTS
1. LAND & BUILDING :

The business premises has been acquired on RENTAL basis. The area of the
business premises is 2500 sq ft The premises is located at the following
address: NO 36, 12TH MAIN WARD NO 102, VRUSHABHAVATHI NAGAR, MAGADI MAIN
ROAD, KAMAKSHI PALYA, NEAR SRINIDHI BAR AND RESTAURENT, BANGALORE-560079
The location has good transportation facilities and other infrastructure
required for subject Order.

2. COST OF THE PROJECT AND MEANS OF FINANCE:

[Rs in
COST OF THE PROJECT: lakhs]

a] Land & building: RENT

b] MACHINERY 30

c] Working capital 1.0

TOTAL 31.00

MEANS OF FINANCE:

Equity-

a] Proprietor' Capital 1.50

Debt-

b] Term loan sought from bank towards machinery/equipment 28.50

c] Working Capital Limit Sought 1.00

TOTAL 31.00

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3. ASSESSMENT OF WORKING CAPITAL REQUIREMENT:

Rent payment and diesel and oil , maintenance expenses per month is as under:

Particulars Total value in Rs

RENT PAYMENT 10,000.00
maintenance expenses 5,000.00
Wages payment to Labour 55,000.00
TOTAL 70,000.00

Based on the above ,Working capital requirement has been arrived as under:

Particulars Total value in Rs

RENT PAYMENT 10,000.00

maintenance expenses 5,000.00

Wages payment to Labour 55,000.00
TOTAL 70,000.00

Margin on Working Capital by the promoter 70

,000.00
Working Capital Limit Sought from the bank 1,00,000.00

TOTAL 1,70,000.00

4. COST OF Running Business Expemnses: (Estimates for the first year of Progressive)

(i). Rent, Diesel, Oil and Auto Maintenance PER MONTH :

Particulars Total value in Rs

RENT PAYMENT 10,000.00
maintenance expenses 5,000.00
TOTAL 15,000.00

(ii). SALARY & WAGES PER MONTH :

Sl.No. Designation Requirement Salary per Total Salary

in numbers head
per
month
I TAILORS SALARY 4 12,000 48,000
II Helper wages 1 7,000 7,000
Total 5 55,000

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(iii). OTHER EXPENSES PER MONTH:

SL.NO. DESCRIPTION AMOUNT (in RS.)

I Travelling expenses 5,000
II Business Promotion Expenses 4,000
IV Electricity 1,200
V Telephone Charges 1,800
VI Printing & Stationery 1050
VIII Bank Charges 1250
TOTAL 14,300.00

TOTAL RECURRING EXPENDITURE PER MONTH:

SL.NO DESCRIPTION AMOUNT (in RS.)

1 RENT PAYMENT AND MAINTAINANCE 15,000
2 Salaries & Wages for Personnel 55,000
3 Other Expenses 14,300
Total 84,300.00

COST OF Expenditure (per annum):

SL.NO PARTICULARS AMOUNT IN RS.

1 Total Recurring Cost 10,11,600.00
Rounded off 10,11,600.00

TOTAL Receipts P E R MONTH:

As per the requirement of SHIRTS is most required in all kind of environment based
no of order required. Example as given below

Particulars No of No of Approx. each Total value

SHIRTS days Shirt price @ in Rs
Rs 450
SHIRTS 390 24 1,75,500 1,75,500.00

TOTAL 1,57,500.00

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TOTAL RECEIPTS PER ANNUM : Rs21,06,000/-

DEPRECIATION:

(In Rs.

Depreciation @ 15% on MACHINERY 4,50,000.00

PROFITABILITY ESTIMATES:a

SL.NO DESCRIPTION AMOUNT (in RS.)

A Sales revenue per Annum 21,06,000

B Cost of production per 10,11,600

Annum
C Net Profit before Interest 10,94,400
and Tax
and Depreciation (A-B)
D Interest 3,48,429
E Depreciation 4,50,000
F Net Profit before Tax 2,95,971
G Provision for Tax
H Net Profit after Tax 2,95,971

INDEX OF ANNEXURE

Annexure-I : Cost of the Project and Means of

Finance Annexure-I A: MACHINERY

Annexure-II : Projected Profit & Loss account

Annexure-III : Projected Balance Sheet

Annexure-VI : Depreciation Schedule

Annexure-V : Computation of D S C R

Annexure-VI : Ratio Analysis

Annexure-VII : Credit facilities sought & security offered

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 Annexure-I
BHAVY
A VG

Cost of the Project and Means of Finance

[Rs
COST OF THE in
PROJECT: lakhs
]

a] Land & building: Rented

b] WATER PURIFIER 5.60

c] 0.0
Working capital
0

TOTAL 5.60

MEANS OF FINANCE:

Equity-

a] Proprietor' Capital 0.60

Debt-

b 5.00
] Term loan sought from

bank towards Canopy and

steels

c] Working Capital Limit Sought 0.00

TOTAL 5.60

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- 10
-
 Annexure-I A
BHAVYA V G
Details of the R O WATER PURIFIER

Sl Description of canopy,chairs and steel Cos

No proposed to be acquired t
. [Rs
.]
1 WATER PURIFIER 5,60,000.00

Tota 5,60,000.0
l 0

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 Annexure-II

BHAVYA V G Projected Profit & Loss account

[Rs in lakhs]
For the year ending Year- Year- Year- Year- Year- Year- Year-
1 2 3 4 5 6 7
Income generated
based on functions
60 65 70 75 80 85 90%
% % % % % %

Income
By Receipt on WATER 13.05 14.13 15.22 16.31 17.40 18.49 19.58

Total 13.05 14.13 15.22 16.31 17.40 18.49 19.58

Expenditure
0.94
0.66 0.72 0.77 0.88 0.99
To Rent 0.83 1.19
0.84 0.91 0.98 1.12 1.26
" Salaries & wages 1.05
0.60 0.65 0.70 0.80 0.85 0.90
" Repairs & maintenance. 0.75
“ other expenses 0.81 0.88 0.95 1.08 1.22
1.01 1.15

Cost of Expenditure 2.91 3.15 3.40 3.64 3.88 4.12 4.37

PBDIT 10.14 10.98 11.82 12.6 13.52 14.37 15.2
7 1
Financial Charges
" Interest on term loan 0.27 0.49 0.43 0.37 0.29 0.20 0.13
Sub Total 0.27 0.49 0.43 0.37 0.29 0.20 0.13

PROFIT BEFORE 9.87 10.49 11.39 12.3 13.23 14.17 15.0

DEPRICIATION AND 0 8
TAX

" Depreciation 0.84 0.71 0.61 0.51 0.44 0.37 0.32

" Profit before tax 9.03 9.78 10.78 11.7 12.79 13.80 14.7
9 6

Less: Taxes 0.93 0.97 1.36 1.47 1.49 1.52 1.54

Net Profit 8.10 8.81 9.42 10.3 11.30 12.28 13.2
2 2

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 Annexure-III

BHAVYA V G Projected Balance Sheet

[Rs in lakhs]
For the year ending Year- Year- Year- Year-4 Year- Year- Year-7
1 2 3 5 6
Liabilities
Capital
B/f from previous year 6.70 12.5 16.93 20.2 22.5 23.83
Add: Capital 0.60 1 5 5
introduction 8.10 8.81 10.32 13.22
Add:Trnsfrd from P&L 2.00 3.00 9.42 7.00 11.3 12.2 12.00
a/c 5.00 0 8
Less: Drawings 9.00 11.0
0
6.70 12.51 16.93 20.25 22.5 23.8 25.05
5 3
Secured loans
Term loan from 4.75
- 4.23 3.63 2.97 2.23 1.91 0
bank Cash Credit
from bank
TOTAL 11.45 16.7 17.5 23.22 24.7 25.7 25.05
4 6 8 4
Assets
Fixed Assets
Gross Block 5.60 4.76 3.44 2.92 2.48 2.11
4.04
Depreciation
0.84 0.71 0.61 0.44 0.37 0.32
0.51
Net Block 4.76 4.04 3.44 2.92 2.48 2.11 1.79
Current assets
Deposits & advances 0.50 0.50 0.50 0.50 0.50 0.50 0.50
Cash and bank balance 6.19 12.20 13.62 19.80 21.8 23.1 22.76
0 3
TOTAL 11.45 16.7 17.5 23.22 24.7 25.7 25.05
4 6 8 4

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- 14 -
 Annexure-IV
BHAVYA
VG
Depreciation Schedule

[Rs in
lakhs]
1 2 3 4 5 6 7

Particulars
Year- Year- Year- Year- Year- Year- Year-7
1 2 3 4 5 6

RO WATER 4.76 4.04 3.44 2.92 2.48 2.11

PURIFIER 5.60

Depn.-15% p.a. 0.84 0.71 0.61 0.5 0.44 0.37 0.32

1
WDV 4.76 4.04 3.44 2.92 2.48 2.11 1.79

Gross Block 4.76 4.04 3.44 2.92 2.48 2.11

5.60

Total depn.for the 0.84 0.71 0.61 0.5 0.44 0.37 0.32
year 1
Nett Block 4.76 4.04 3.44 2.92 2.48 2.11 1.79

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 Annexure-V

BHAVYA V G
Debt Service Coverage Ratio Computation
[Rs in lakhs]

Particulars Year- Year- Year- Year- Year- Year- Year-

1 2 3 4 5 6 7

Profit after tax 8.10 8.81 9.42 10.3 11.30 12.28 13.22
2

Depreciation 0.84 0.71 0.61 0.5 0.44 0.37 0.32

1
Interest on term loan 0.27 0.49 0.43 0.3 0.29 0.20 0.13
7
TOTAL (A) 9.21 10.01 10.4 11.20 12.03 12.8 13.67
6 5

Princ repayment-Term 0.24 0.52 0.59 0.66 0.73 0.82 1.41

loan
Interest on term loan 0.27 0.49 0.43 0.29 0.20 0.13
0.3
7
TOTAL (B) 0.51 1.01 1.02 1.03 1.02 1.02 1.54

Gross DSCR=A/B 18.05 9.91 10.2 10.87 11.79 12.6 8.88

5 0

Average D S C R: 11.76

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- 17 -
 Annexure-VI
GOPALAKRISHN
A
Ratio Analysis

Particulars Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 Year-7

Net Sales 32.4 35.1 37.8 40.5 43.2 45.9 48.6

Profit before tax[PBT] 14.98 18.43 20.92 23.4 25.85 28.3 30.71

PBT/Net Sales[%] 46% 53% 55% 58% 60% 62% 63%

PBDIT 19.95 21.91 23.88 25.8 27.80 29.76 31.73

4
Net profit 12.36 14.78 16.52 18.2 19.97 21.69 23.37
6
Deprecation 2.63 2.23 1.90 1.61 1.37 1.17
0.99
Cash profit
9.73 12.55 14.62 16.65 18.6 20.52 22.38
PBDIT / Net sales[%] 62% 62% 63% 64% 64% 65% 65%

Net profit / Sales [%] 38% 42% 44% 45% 46% 47% 48%

Tangible NetWorth[TNW] 6.99 9.77 12.29 14.55 16.52 18.21 20.5

8
Debt 13.15 11.02 9.47 7.72 5.76 4.68 0.00

Debt/Equity 1.88 1.13 0.77 0.53 0.35 0.26 0.00

TOL 13.90 11.77 10.22 8.47 6.51 5.43 0.75

TOL/TNW 1.99 1.20 0.83 0.58 0.39 0.30 0.04

Current Ratio * 7.99 11.83 15.65 18.48 20.32 22.69 20.93

NWC
5.24 8.12 10.99 13.11 14.49 16.27 14.95
Year wise DSCR 3.88 6.52 10.33 7.33 7.91 8.36
23.0
0
Average DSCR 9.62

Net Block 14.90 12.67 10.77 9.16 7.79 6.62 5.63

Fixed Assets Coverage 1.13 1.15 1.14 1.19 1.35 1.41 -

Ratio

* - Principal repayment obligations of next year qualified as current liability

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- 19 -
 Annexure-VII

BHAVYA V G

Credit facilities sought & security offered

A.
Nature of limit: TERM LOAN
Loan Amount Rs 5,00,000/-(Rupees Thirteen Lakhs
Only)
Margin 10%
Rate of interest As per bank norms
Purpose To establish a RO WATER
PURIFIER
at a project cost of Rs 5.6 lakhs.
Repayment Period Within 84 months in 81 equal
monthly installments with a
repayment holiday of 3
months
Interest Payment As and when debited
Prime Security Hypothecation of RO PLANT and
other assets purchased/created
out of bank finance.
Disbursement As per Bank norms

B.

Nature of limit: WORKING CAPITAL

Loan Amount Not Required
Margin 10 %
Rate of interest As per bank norms
Purpose Towards working capital requirement.
Prime Security Hypothecation of Book Debts.

Further all other terms of the bank shall be complied with.

Place : Bengaluru BHAVYA V G

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