PROJECT REPORT

Of

MOSQUITO NET

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Mosquito Net.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also prepare
project report on any subject as per your requirement.]

Lucknow Office: Sidhivinayak Building ,

27/1/B, Gokhlley Marg, Lucknow-226001

Delhi Office : Multi Disciplinary Training

Centre, Gandhi Darshan Rajghat,
New Delhi 110002

Email : [email protected]
Contact : +91 7526000333, 444, 555
 PROJECT AT A GLANCE

1 Name of the Entreprenuer XXXXXXX

2 Constitution (legal Status) XXXXXXX

3 Father's/Spouce's Name XXXXXXXX

4 Unit Address : XXXXXXXX

Taluk/Block:
District : XXXXX
Pin: XXXXX State: XXXXX
E-Mail : XXXXX
Mobile XXXXX

5 Product and By Product : Mosquito Net

6 Name of the project / business activity proposed Mosquito Net

7 Cost of Project : Rs7.86 lac

8 Means of Finance
Term Loan Rs.4.05 Lacs
KVIC Margin Money - As per Project Eligibility
Own Capital Rs.0.79 Lacs
Working Capital Rs.3.03 Lacs

9 Debt Service Coverage Ratio : 13.88

10 Pay Back Period : 5 Years

11 Project Implementation Period : 6 Months

12 Break Even Point : 37%

13 Employment : 15 Persons

14 Power Requirement : 5.00 HP

15 Major Raw materials : Nylon net ,thread ,Tape ,linen

16 Estimated Annual Sales Turnover : 48.35 Lacs

16 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lacs)

Particulars Amount
Land Rented/Owned
Building & Civil Work (2000 Sq ft) 2.50
Plant & Machinery 1.00
Furniture & Fixtures 0.75
Pre-operative Expenses 0.25
Working Capital Requirement 3.36
Total 7.86

MEANS OF FINANCE
Particulars Amount

Own Contribution @10% 0.79

Term Loan 4.05

Workign Capital Finance 3.03

Total 7.86

General Special
Beneficiary's Margin Monery 10% 5%
(% of Project Cost)

PLANT & MACHINERY

Sewing Machine 103K complete set with 10 9,000.00 90,000.00

all fittingsTA1- with stand
Scissor, Scale Tape etc LS 10,000.00 10,000.00
TotalMachinery 100,000.00
PROJECTED BALANCE SHEET

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

SOURCES OF FUND

Capital Account 0.79 0.79 0.79 0.79 0.79

Retained Profit 8.15 17.44 27.74 39.94 53.87

Term Loan 4.05 3.04 2.03 1.01 0.51

Cash Credit 3.01 3.01 3.01 3.01 3.01
Sundry Creditors 1.42 1.65 1.89 2.13 2.36
Provisions & Other Liab 0.36 0.40 0.44 0.48 0.53

TOTAL : 17.77 26.32 35.89 47.35 61.06

APPLICATION OF FUND

Fixed Assets ( Gross) 4.25 4.25 4.25 4.25 4.25

Gross Dep. 0.44 0.86 1.24 1.57 1.86
Net Fixed Assets 3.81 3.39 3.01 2.68 2.39

Current Assets
Sundry Debtors 3.38 4.03 4.61 5.18 5.76
Stock in Hand 1.40 2.26 2.58 2.90 3.23

Cash and Bank 6.68 13.90 22.66 33.25 46.02

Deposits & Advances 2.50 2.75 3.03 3.33 3.66

TOTAL : 17.77 26.32 35.89 47.35 61.06

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

A) SALES
Gross Sale 48.35 57.56 65.81 74.06 82.31

Total (A) 48.35 57.56 65.81 74.06 82.31

B) COST OF SALES

Raw Mateiral Consumed 20.25 23.63 27.00 30.38 33.75

Elecricity Expenses 0.43 0.50 0.57 0.64 0.72
Repair & Maintenance - 0.58 0.66 0.74 0.82
Labour & Wages 13.73 15.10 16.61 18.27 20.10
Depriciation 0.44 0.42 0.38 0.33 0.29
Consumables and Other Expense 2.42 2.88 3.29 3.70 4.12
Cost of Production 37.26 43.10 48.51 54.07 59.80

Add: Opening Stock /WIP - 0.92 1.08 1.23 1.39

Less: Closing Stock /WIP 0.92 1.08 1.23 1.39 1.54

Cost of Sales (B) 36.34 42.95 48.35 53.91 59.64

C) GROSS PROFIT (A-B) 12.01 14.61 17.45 20.14 22.66

25% 25% 27% 27% 28%
D) Bank Interest (Term Loan ) 0.34 0.36 0.25 0.13 0.02
Bank Interest ( C.C. Limit ) 0.30 0.30 0.30 0.30 0.30

E) Salary to Staff 2.24 2.47 2.72 2.99 3.29

F) Selling & Adm Expenses Exp. 0.97 1.15 1.32 1.48 1.65

TOTAL (D+E) 3.85 4.28 4.58 4.90 5.25

H) NET PROFIT 8.15 10.32 12.87 15.24 17.41

I) Taxation - 1.03 2.57 3.05 3.48

J) PROFIT (After Tax) 8.15 9.29 10.30 12.20 13.93

PROJECTED CASH FLOW STATEMENT

PARTICULARS IST YEAR IIND YEAR IIIRD YEARIVTH YEAR VTH YEAR

SOURCES OF FUND

Share Capital 0.79 -

Reserve & Surplus 8.15 10.32 12.87 15.24 17.41
Depriciation & Exp. W/off 0.44 0.42 0.38 0.33 0.29
Increase in Cash Credit 3.01 - - - -
Increase In Term Loan 4.05 - - - -
Increase in Creditors 1.42 0.24 0.24 0.24 0.24
Increase in Provisions 0.36 0.04 0.04 0.04 0.05

TOTAL : 18.21 11.02 13.53 15.86 17.99

APPLICATION OF FUND

Increase in Fixed Assets 4.25 - - - -

Increase in Stock 1.40 0.86 0.32 0.32 0.32
Increase in Debtors 3.38 0.64 0.58 0.58 0.58
Increase in Deposits & Adv 2.50 0.25 0.28 0.30 0.33
Repayment of Term Loan - 1.01 1.01 1.01 0.51
Taxation - 1.03 2.57 3.05 3.48

TOTAL : 11.53 3.80 4.76 5.26 5.22

Opening Cash & Bank Balance - 6.68 13.90 22.66 33.25

Add : Surplus 6.68 7.22 8.76 10.59 12.77

Closing Cash & Bank Balance 6.68 13.90 22.66 33.25 46.02
COMPUTATION OF MANUFACTURING OF Mosquito Net

Items to be Manufactured Mosquito Net

Manufacturing Capacity per day - 250 Mosquito Net

No. of Working Hour 8
No of Shift per day 1
No of Working Days per month 25
No. of Working Day per annum 300
Total Production per Annum 75,000.00 Mosquito Net

Year Capacity
Utilisation
Mosquito Net
IST YEAR 60% 45,000
IIND YEAR 70% 52,500
IIIRD YEAR 80% 60,000
IVTH YEAR 90% 67,500
VTH YEAR 100% 75,000

COMPUTATION OF RAW MATERIAL

Item Name Quantity of Recovery Unit Rate of Total Cost

Raw Material of RM Per Annum (100%
Meters
Nylon Net
100% 75,000.00 100% 45.00 33.75
Cotton tape,thread lining cloth etc
Packing material

Total (Rounded off in lacs) 33.75

Annual Consumption cost ( In Lacs) 33.75

Raw Material Consumed Capacity Amount (Rs.)

Utilisation

IST YEAR 60% 20.25

IIND YEAR 70% 23.63
IIIRD YEAR 80% 27.00
IVTH YEAR 90% 30.38
VTH YEAR 100% 33.75
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

Finished Goods
(15 Days requirement) 0.92 1.08 1.23 1.39 1.54
Raw Material
(15 Days requirement) 0.47 1.18 1.35 1.52 1.69

Closing Stock 1.40 2.26 2.58 2.90 3.23

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Total
Amount
Stock in Hand 1.40

Sundry Debtors 3.38

Total 4.78
Sundry Creditors 1.42

Working Capital Requirement 3.36

Margin 0.36

Working Capital Finance 3.01

BREAK UP OF LABOUR

Particulars Wages No of Total

Per Month Employees Salary
Stitching machine operator 8,000.00 10 80,000.00
Master Cutter 8,000.00 2 16,000.00
Unskilled Worker 4,000.00 2 8,000.00

104,000.00
Add: 10% Fringe Benefit 10,400.00
Total Labour Cost Per Month 114,400.00
Total Labour Cost for the year ( In Rs. Lakhs) 13.73

BREAK UP OF SALARY

Particulars Salary No of Total

Per Month Employees Salary
Supervisor 10,000.00 1 10,000.00
Sales Man 7,000.00 1 7,000.00
Total Salary Per Month 17,000.00

Add: 10% Fringe Benefit 1,700.00

Total Salary for the month 18,700.00

Total Salary for the year ( In Rs. Lakhs) 2.24

COMPUTATION OF DEPRECIATION

Description Land Building/shed Plant & Furniture TOTAL

Machinery

Rate of Depreciation 10.00% 15.00% 10.00%

Opening Balance Leased - - - -
Addition - 2.50 1.00 0.75 4.25
- 2.50 1.00 0.75 4.25
Less : Depreciation - 0.25 0.15 0.04 0.44
WDV at end of Ist year - 2.25 0.85 0.71 3.81
Additions During The Year - - - - -
- 2.25 0.85 0.71 3.81
Less : Depreciation - 0.23 0.13 0.07 0.42
WDV at end of IInd Year - 2.03 0.72 0.64 3.39
Additions During The Year - - - - -
- 2.03 0.72 0.64 3.39
Less : Depreciation - 0.20 0.11 0.06 0.38
WDV at end of IIIrd year - 1.82 0.61 0.58 3.01
Additions During The Year - - - - -
- 1.82 0.61 0.58 3.01
Less : Depreciation - 0.18 0.09 0.06 0.33
WDV at end of IV year - 1.64 0.52 0.52 2.68
Additions During The Year - - - - -
- 1.64 0.52 0.52 2.68
Less : Depreciation - 0.16 0.08 0.05 0.29
WDV at end of Vth year - 1.48 0.44 0.47 2.39
REPAYMENT SCHEDULE OF TERM LOAN 11.5%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

IST YEAR Opening Balance
Ist Quarter - 4.05 4.05 - - 4.05
Iind Quarter 4.05 - 4.05 0.12 - 4.05
IIIrd Quarter 4.05 - 4.05 0.12 0.25 3.80
Ivth Quarter 3.80 - 3.80 0.11 0.25 3.54
0.34 0.51
IIND YEAR Opening Balance
Ist Quarter 3.54 - 3.54 0.10 0.25 3.29
Iind Quarter 3.29 - 3.29 0.09 0.25 3.04
IIIrd Quarter 3.04 - 3.04 0.09 0.25 2.78
Ivth Quarter 2.78 2.78 0.08 0.25 2.53
0.36 1.01
IIIRD YEAR Opening Balance
Ist Quarter 2.53 - 2.53 0.07 0.25 2.28
Iind Quarter 2.28 - 2.28 0.07 0.25 2.03
IIIrd Quarter 2.03 - 2.03 0.06 0.25 1.77
Ivth Quarter 1.77 1.77 0.05 0.25 1.52
0.25 1.01
IVTH YEAR Opening Balance
Ist Quarter 1.52 - 1.52 0.04 0.25 1.27
Iind Quarter 1.27 - 1.27 0.04 0.25 1.01
IIIrd Quarter 1.01 - 1.01 0.03 0.25 0.76
Ivth Quarter 0.76 0.76 0.02 0.25 0.51
0.13 1.01
VTH YEAR Opening Balance
Ist Quarter 0.51 - 0.51 0.01 0.25 0.25

Iind Quarter 0.25 - 0.25 0.01 0.25 0.00

IIIrd Quarter 0.00 - 0.00 0.00 - 0.00
Ivth Quarter 0.00 0.00 0.00 - 0.00
0.02 0.51
CALCULATION OF D.S.C.R

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

CASH ACCRUALS 8.59 9.71 10.67 12.53 14.22

Interest on Term Loan 0.34 0.36 0.25 0.13 0.02

Total 8.93 10.08 10.92 12.66 14.24

REPAYMENT
Instalment of Term Loan 1.01 1.01 1.01 0.51 0.51
Interest on Term Loan 0.34 0.36 0.25 0.13 0.02

Total 1.35 1.38 1.26 0.64 0.53

DEBT SERVICE COVERAGE RA 6.59 7.32 8.67 19.87 26.97

AVERAGE D.S.C.R. 13.88

COMPUTATION OF SALE
Particulars IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

Op Stock - 1,050 1,225 1,400 1,575

Production 45,000 52,500 60,000 67,500 75,000

45,000 53,550 61,225 68,900 76,575

Less : Closing Stock 1,050 1,225 1,400 1,575 1,750

Net Sale 43,950 52,325 59,825 67,325 74,825

Sale Price per Mosquito net 110.00 110.00 110.00 110.00 110.00

Sale (in Lacs) 48.35 57.56 65.81 74.06 82.31

COMPUTATION OF ELECTRICITY
(A) POWER CONNECTION

Total Working Hour per day Hours 8

Electric Load Required 5
Load Factor 0.7460
Electricity Charges per unit 8.00
Total Working Days 300
Electricity Charges ( 8 Hrs Per day ) 71,616.00

Add : Minimim Charges (@ 10%)

(B) D.G. SET

No. of Working Days 300 days
No of Working Hours - Hour per day
Total no of Hour -
Diesel Consumption per Hour 8
Total Consumption of Diesel -
Cost of Diesel 65.00 Rs. /Ltr
Total cost of Diesel -
Add : Lube Cost @15% -
Total -

Total cost of Power & Fuel at 100% 0.72

Year Capacity Amount

(in Lacs)

IST YEAR 60% 0.43

IIND YEAR 70% 0.50
IIIRD YEAR 80% 0.57
IVTH YEAR 90% 0.64
VTH YEAR 100% 0.72
BREAK EVEN POINT ANALYSIS

Year I II III IV V

Net Sales & Other Income 48.35 57.56 65.81 74.06 82.31
Less : Op. WIP Goods ‐ 0.92 1.08 1.23 1.39
Add : Cl. WIP Goods 0.92 1.08 1.23 1.39 1.54

Total Sales 49.27 57.71 65.96 74.21 82.46

Variable & Semi Variable Exp.

Raw Material & Tax 20.25 23.63 27.00 30.38 33.75

Electricity Exp/Coal Consumption at 85% 0.37 0.43 0.49 0.55 0.61
Manufacturing Expenses 80% 1.93 2.76 3.16 3.55 3.95
Wages & Salary at 60% 9.58 10.54 11.60 12.76 14.03
Selling & adminstrative Expenses 80% 0.77 0.92 1.05 1.18 1.32
Intt. On Working Capital Loan 0.30 0.30 0.30 0.30 0.30
Total Variable & Semi Variable Exp 33.21 38.58 43.60 48.72 53.96

Contribution 16.06 19.13 22.37 25.49 28.50

Fixed & Semi Fixed Expenses

Manufacturing Expenses 20% 0.48 0.69 0.79 0.89 0.99

Electricity Exp/Coal Consumption at 15% 0.06 0.08 0.09 0.10 0.11
Wages & Salary at 40% 6.39 7.03 7.73 8.50 9.35
Interest on Term Loan 0.34 0.36 0.25 0.13 0.02
Depreciation 0.44 0.42 0.38 0.33 0.29
Selling & adminstrative Expenses 20% 0.19 0.23 0.26 0.30 0.33
Total Fixed Expenses 7.91 8.81 9.49 10.25 11.09

Capacity Utilization 75% 80% 85% 90% 95%

OPERATING PROFIT 8.15 10.32 12.87 15.24 17.41
BREAK EVEN POINT 37% 37% 36% 36% 37%
BREAK EVEN SALES 24.26 26.58 27.99 29.83 32.10
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