Project Report For

Soft Drink Shop

Prepared for

ROMOTOR

Xxxxxxxxxxxxxxxxxxxxxxxx

Project Location

xxxxxxxxxxxxxxxxxxxxxxx

Prepared by:

Download Project Report.com

1187/67, Ground Floor,

Gruhalaxmi, J.M. Road, near
Balgandharva Chowk

Pune, Maharashtra 411005.

 Project For:
Soft Drink Shop

CONTENT

CHAPTER NO. PARTICULAR

I. PROJECT AT A GLANCE

II. ABOUT THE PROJECT

III. ECONOMICS OF THE PROJECT

A. TOTAL COST OF THE PROJECT & MEANS OF FINANCE

B. PROFITABILITY STATEMENT
C. CASH FLOW STATEMENT
D. BALANCE SHEET
E. CAPITAL ACCOUNT
F. INCOME
G. EXPENSES
H. FIXED ASSETS AND DEPRECIATION
I. TERM LOAN REPAYMENT AND INTEREST THEREON
J. WORKING CAPITAL
 Project For:
Soft Drink Shop

I. PROJECT AT A GLANCE

1. About the Promoter : xxxxxxxxxxxxxxxxxxxxx

Project Location: xxxxxxxxxx

2. Project Cost : Rs. 2.60 Lakhs

3. Mean of Finance
A) T. L. facility from Bank : Rs. 0.65 Lakhs

B) Beneficiary contribution : Rs. 1.95 Lakhs

5. Rate of Interest : 8.35.00% Per Annum

6. Repayment : 84 monthly instalments, EMI @ 0.03 Lakhs

7. Nature of Project : Soft Drink Shop

8. Employment Potential : 1 Nos

9. Nature of the Firm : Proprietary Firm

10. Average Debt Coverage ratios : 3.34

 Project For:
Soft Drink Shop

II. ABOUT THE PROJECT

Soft drink, any of a class of nonalcoholic beverages, usually but not necessarily carbonated,
normally containing a natural or artificial sweetening agent, edible acids, natural or artificial
flavours, and sometimes juice. Natural flavours are derived from fruits, nuts, berries, roots,
herbs, and other plant sources. Coffee, tea, milk, cocoa, and undiluted fruit and vegetable juices
are not considered soft drinks.

The term soft drink was originated to distinguish the flavoured drinks from hard liquor,
or distilled spirits. Soft drinks were recommended as a substitute in the effort to change the
hard-drinking habits of early Americans. Indeed, health concerns of modern consumers led to
new categories of soft drinks emphasizing low calorie count, low sodium content, no caffeine,
and “all natural” ingredients.
 Project For :
Minchi Enterprises

II. ECONOMICS OF THE PROJECT

A. COST OF PROJECT
(Rs. Lacs)
`

S.No. Particulars Total Spent Bal. To be

spent

1 Building (Shop) - - -

2 Furniture & Electrical 0.50 - 0.50

3 Working Capital 2.10 - 2.10

2.60 - 2.60

Means of Finance :

a) Own Contribution (25%) 0.65

b) T L facility from Bank (75%) 1.95

2.60
 Project For :
Minchi Enterprises

B. PROFITABILITY STATEMENT
(Rs. Lacs)

S.No. Particulars YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7

1 Sales 8.00 10.00 11.00 12.10 13.31 14.64 16.11

Add : Increase in Cl.Stock 1.25 0.31 0.16 0.17 0.19 0.21 0.23
Total Turnover 9.25 10.31 11.16 12.27 13.50 14.85 16.33

2 Material Purchase 5.00 6.25 6.88 7.56 8.32 9.15 10.07

3 Overheads
a) Direct 1.46 1.61 1.67 1.70 1.84 1.93 2.03
b) Indirect 1.40 1.54 1.69 1.78 1.87 1.96 2.06
4 Balance 1.39 0.92 0.92 1.23 1.47 1.80 2.18
5 Interest on TL & CC 0.15 0.14 0.12 0.09 0.07 0.04 0.02
6 Depreciation 0.08 0.06 0.05 0.05 0.04 0.03 0.03
7 Preliminery expenses W/off - - - - - - -
8 Profit after Interest & Dep. 1.16 0.72 0.75 1.09 1.36 1.73 2.13
9 Income Tax - - - - - - -
10 Profit after Tax 1.16 0.72 0.75 1.09 1.36 1.73 2.13
11 Add: Depreciation & Pre Exp. 0.08 0.06 0.05 0.05 0.04 0.03 0.03
12 Add : Interest on TL & CC 0.15 0.14 0.12 0.09 0.07 0.04 0.02
13 Cash Accruals 1.39 0.92 0.92 1.23 1.47 1.80 2.18
14 Instalments of TL & Interest 0.37 0.37 0.37 0.37 0.37 0.37 0.37

15 DSCR 3.27 1.99 2.00 2.83 3.49 4.39 5.41

16 Average DSCR 3.34

17 N.P. to Total receipts 14.50 7.17 6.82 8.99 10.23 11.79 13.25
 Project For :
Minchi Enterprises

C. CASH FLOW STATEMENT

(Rs. Lacs)

S.No. Particulars YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7

A CASH INFLOW :

1 Collection from Debtors 7.67 9.58 10.54 11.60 12.76 14.03 15.43
2 T.L. from Bank 1.95
3 CC from bank -
4 Capital 0.65
5 Subsidy -
TOTAL (A) 10.27 9.58 10.54 11.60 12.76 14.03 15.43

B CASH OUTFLOW :

1 Fixed Assets 0.50 - - - - -

2 Payment to creditors 4.18 6.04 6.77 7.45 8.19 9.01 9.92
3 Direct overheads 1.46 1.61 1.67 1.70 1.84 1.93 2.03
4 Indirect Overheads 1.40 1.54 1.69 1.78 1.87 1.96 2.06
5 Interest on Bank Loan 0.15 0.14 0.12 0.09 0.07 0.04 0.02
6 Income Tax - - - - - - -
7 Term Loan Repayment 0.21 0.23 0.25 0.27 0.30 0.32 0.35
8 Drawings - - - - - - -

TOTAL (B) 7.91 9.56 10.50 11.30 12.27 13.28 14.37

SUMMERY:
Op. Cash & Bank Balance. - 2.36 2.38 2.42 2.72 3.20 3.96
Add : Surplus / (Deficit) 2.36 0.02 0.04 0.30 0.48 0.75 1.06
Cl. Cash & Bank Balance. 2.36 2.38 2.42 2.72 3.20 3.96 5.02
 Project For :
Minchi Enterprises

D. BALANCE SHEET
(Rs. Lacs)

S.No. Particulars YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7

A ASSETS :

1 Fixed Assets 0.43 0.36 0.31 0.26 0.22 0.19 0.16

2 Investments - - - - - -

3 Current Assets 3.94 4.70 5.35 6.32 7.55 9.12 11.08

4 Loans & Advances - - - - - - -

TOTAL (A) 4.37 5.06 5.66 6.58 7.77 9.31 11.24

B LIABILITIES:

1 Capital 1.81 2.53 3.28 4.36 5.73 7.45 9.59

2 Secured loans
Term Loan 1.74 1.50 1.25 0.98 0.68 0.35 -

3 Sundry Creditors 0.82 1.03 1.13 1.24 1.37 1.50 1.65

4 Current Liabilities
Cash Credit - - - - - -

TOTAL (B) 4.37 5.06 5.66 6.58 7.77 9.31 11.24

- - - - - -
 Project For :
Minchi Enterprises

(Rs. Lacs)

E. CAPITAL ACCOUNT

S.No. Particulars YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7

1 Op. Balance - 1.81 2.53 3.28 4.36 5.73 7.45

2 Additions 0.65

3 Net Profit for the year. 1.16 0.72 0.75 1.09 1.36 1.73 2.13

Sub Total 1.81 2.53 3.28 4.36 5.73 7.45 9.59

4 Less : Drawings - - - - - - -

5 Cl. Balance 1.81 2.53 3.28 4.36 5.73 7.45 9.59

 Project For :
Minchi Enterprises

(Rs. Lacs)

F. SALES

S.No. Particulars YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7

1 Sales per annum 8.00 10.00 11.00 12.10 13.31 14.64 16.11
Soft Drink

2 Total Sale 8.00 10.00 11.00 12.10 13.31 14.64 16.11

3 Sundry Debtors 0.33 0.42 0.46 0.50 0.55 0.61 0.67

(Credit period allowed 15 days)

4 Collection from Debtors 7.67 9.58 10.54 11.60 12.76 14.03 15.43
 Project For :
Minchi Enterprises

(Rs. Lacs)

G. MATERIAL CONSUMPTION AND INVENTORY

S.No. Particulars YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7

1 Sale of material 8.00 10.00 11.00 12.10 13.31 14.64 16.11

2 Purchases of Material 5.00 6.25 6.88 7.56 8.32 9.15 10.07

Soft Drink

3 Sundry Creditors 0.82 1.03 1.13 1.24 1.37 1.50 1.65

( Assume 60 day Cedit
Period allowed)

4 Payment to creditors 4.18 6.04 6.77 7.45 8.19 9.01 9.92

5 Stock of Material 1.25 1.56 1.72 1.89 2.08 2.29 2.52

 Project For :
Minchi Enterprises

(Rs. Lacs)

H. DIRECT OVERHEADS

S.No. Particulars YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7

1 Staff Salary 0.96 1.06 1.06 1.07 1.17 1.23 1.29

(Monthly salary- Rs. 10,000/- per
staff) .
(No. of staff- 1)

2 Other Overheads 0.50 0.55 0.61 0.64 0.67 0.70 0.74

Total 1.46 1.61 1.67 1.70 1.84 1.93 2.03

`
 Project For :
Minchi Enterprises

(Rs. Lacs)

I. INDIRECT OVERHEADS

S.No. Particulars YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7

1 Travelling & Conveyance 0.30 0.33 0.36 0.38 0.40 0.42 0.44

2 Repairs & Maint. 0.25 0.28 0.30 0.32 0.33 0.35 0.37

3 Electricity Expenses (Off.) 0.36 0.40 0.44 0.46 0.48 0.50 0.53

4 Telephone Expenses 0.24 0.26 0.29 0.30 0.32 0.34 0.35

5 Misc. Expenses 0.25 0.28 0.30 0.32 0.33 0.35 0.37

1.40 1.54 1.69 1.78 1.87 1.96 2.06

 Project For :
Minchi Enterprises

J. TERM LOAN REPAYMENT AND INTEREST THEREON

(Rs. Lacs)

S.No. Particulars YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7

1 TL / Op. Bal. 1.95 1.74 1.50 1.25 0.98 0.68 0.35

2 Repayment during the year 0.21 0.23 0.25 0.27 0.30 0.32 0.35
3 Cl. Balance 1.74 1.50 1.25 0.98 0.68 0.35 -

4 Interest at 8.35 per cent p.a. 0.15 0.14 0.12 0.09 0.07 0.04 0.02

5 Total repayment with Interest 0.37 0.37 0.37 0.37 0.37 0.37 0.37

Total Interest 0.15 0.14 0.12 0.09 0.07 0.04 0.02

LOAN AMOUNT 1.95
RATE OF INTEREST PER ANNUM 8.35%
RATE OF INTEREST PER MONTH 0.696%
NO OF INSTALLMENT 84
EMI 0.03
Term Loan Repayment Schedule

MONTHS EMI INTERES PRINCIP OST

T AL PRINCIP
REPAYM AL
ENT
0 1.95
1 0.03 0.01 0.02 1.93
2 0.03 0.01 0.02 1.92
3 0.03 0.01 0.02 1.90
4 0.03 0.01 0.02 1.88
5 0.03 0.01 0.02 1.86
6 0.03 0.01 0.02 1.85
7 0.03 0.01 0.02 1.83
8 0.03 0.01 0.02 1.81
9 0.03 0.01 0.02 1.79
10 0.03 0.01 0.02 1.77
11 0.03 0.01 0.02 1.75
12 0.03 0.01 0.02 1.74
First Year 0.37 0.15 0.21
13 0.03 0.01 0.02 1.72
14 0.03 0.01 0.02 1.70
15 0.03 0.01 0.02 1.68
16 0.03 0.01 0.02 1.66
17 0.03 0.01 0.02 1.64
18 0.03 0.01 0.02 1.62
19 0.03 0.01 0.02 1.60
20 0.03 0.01 0.02 1.58
21 0.03 0.01 0.02 1.56
22 0.03 0.01 0.02 1.54
23 0.03 0.01 0.02 1.52
 24 0.03 0.01 0.02 1.50
Second Year 0.37 0.14 0.23
25 0.03 0.01 0.02 1.48
26 0.03 0.01 0.02 1.46
27 0.03 0.01 0.02 1.44
28 0.03 0.01 0.02 1.42
29 0.03 0.01 0.02 1.40
30 0.03 0.01 0.02 1.38
31 0.03 0.01 0.02 1.36
32 0.03 0.01 0.02 1.34
33 0.03 0.01 0.02 1.32
34 0.03 0.01 0.02 1.29
35 0.03 0.01 0.02 1.27
36 0.03 0.01 0.02 1.25
Third Year 0.37 0.12 0.25
37 0.03 0.01 0.02 1.23
38 0.03 0.01 0.02 1.21
39 0.03 0.01 0.02 1.18
40 0.03 0.01 0.02 1.16
41 0.03 0.01 0.02 1.14
42 0.03 0.01 0.02 1.12
43 0.03 0.01 0.02 1.09
44 0.03 0.01 0.02 1.07
45 0.03 0.01 0.02 1.05
46 0.03 0.01 0.02 1.02
47 0.03 0.01 0.02 1.00
48 0.03 0.01 0.02 0.98
Fourth Year 0.37 0.09 0.27
49 0.03 0.01 0.02 0.95
50 0.03 0.01 0.02 0.93
51 0.03 0.01 0.02 0.90
52 0.03 0.01 0.02 0.88
53 0.03 0.01 0.02 0.85
54 0.03 0.01 0.02 0.83
55 0.03 0.01 0.02 0.80
56 0.03 0.01 0.03 0.78
57 0.03 0.01 0.03 0.75
58 0.03 0.01 0.03 0.73
59 0.03 0.01 0.03 0.70
60 0.03 0.00 0.03 0.68
Fifth Year 0.37 0.07 0.30
 61 0.03 0.00 0.03 0.65
62 0.03 0.00 0.03 0.62
63 0.03 0.00 0.03 0.60
64 0.03 0.00 0.03 0.57
65 0.03 0.00 0.03 0.55
66 0.03 0.00 0.03 0.52
67 0.03 0.00 0.03 0.49
68 0.03 0.00 0.03 0.46
69 0.03 0.00 0.03 0.44
70 0.03 0.00 0.03 0.41
71 0.03 0.00 0.03 0.38
72 0.03 0.00 0.03 0.35
Six Year 0.37 0.04 0.32
73 0.03 0.00 0.03 0.32
74 0.03 0.00 0.03 0.30
75 0.03 0.00 0.03 0.27
76 0.03 0.00 0.03 0.24
77 0.03 0.00 0.03 0.21
78 0.03 0.00 0.03 0.18
79 0.03 0.00 0.03 0.15
80 0.03 0.00 0.03 0.12
81 0.03 0.00 0.03 0.09
82 0.03 0.00 0.03 0.06
83 0.03 0.00 0.03 0.03
84 0.03 0.00 0.03 0.00
Seven Year 0.37 0.02 0.35
 Project For :
Minchi Enterprises

K. CURRENT ASSETS
(Rs. Lacs)

S.No. Particulars YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7

1 Cl. Stock of Materials 1.25 1.56 1.72 1.89 2.08 2.29 2.52

Total Inventory 1.25 1.56 1.72 1.89 2.08 2.29 2.52

2 Cash and bank Balance 2.36 2.38 2.42 2.72 3.20 3.96 5.02

3 Sundry Debtors 0.33 0.75 1.21 1.71 2.27 2.88 3.55

Total 3.94 4.70 5.35 6.32 7.55 9.12 11.08

 Project For :
Minchi Enterprises

L. FIXED ASSETS AND DEPRECIATION

(Rs. Lacs)

S.No. Particulars YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7

1 Furniture & Electrical

Op. Balance - 0.43 0.36 0.31 0.26 0.22 0.19
Additions 0.50 - -
Total 0.50 0.43 0.36 0.31 0.26 0.22 0.19
Less : Depreciation 0.08 0.06 0.05 0.05 0.04 0.03 0.03
Cl. WDV 0.43 0.36 0.31 0.26 0.22 0.19 0.16

Total Depreciation 0.08 0.06 0.05 0.05 0.04 0.03 0.03

Cl. WDV 0.43 0.36 0.31 0.26 0.22 0.19 0.16

 Project For :
Minchi Enterprises

M. WORKING CAPITAL
(Rs. Lacs)

S.No. Particulars YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7

1 Total Current Assets 3.94 4.70 5.35 6.32 7.55 9.12 11.08

2 Total Current Liabilities 0.82 1.03 1.13 1.24 1.37 1.50 1.65

3 Working Capital 3.12 3.67 4.22 5.08 6.18 7.62 9.43