Mr BANDI RAVINDER PROJECT REPORT Feb 2022 Proposed Unit : D.NO. 1-38/1, ETUR VILLAGE AND POST, KANNAIGUDEM MANDAL, WARANGAL (Dist.), TELANGANA, INDIA. Phone No : 9573628275EXECUTIVE SUMMARY Name of the Enterprise ‘Mr BANDI RAVINDER Constitution Proprietary Concern Unit Addresses D.NO.1-38/1, Etur Village and Post, Kannaigudem Mandal, Warangal (Dist.), Telangana, India Line of Activity Rice Mill Cost of Project Rs 25.00 lacs Name of the business. Mr BANDI RAVINDER ‘Means of Finance Capital Rs 1.25 lacs Term Loan Rs 14.25 lacs cc Rs 9.50 lacs Subsidy from KVIC 35% on Cost of Project i.e Rs 8.75 lacs treated as Quasi Equity Pay Back Period ‘80 MI With 3 Months Holiday Project Implementation 3 Months Period Employment 10 Power Requirement ‘Available ‘Major Raw Materials, Procured from the local farmers in the surrounding area 2. About the firm This is a proprietary concern established in Jan 2022 by Mr. Bandi Ravinder for Rice milling in own premises. He studied up to 10" class. The proprietor has more than 10 Years of experience in similar line of activity. He belongs to the Business community and informed that he will take guidance from his father who is having more the 2 Decades of experience in similar line of activity. The proprietor is having good contacts with farmers in the surrounding area which helps in marketing the products. Now he wanted to establish his ‘own unit as he interested in self-employment and applied to DTFC under PMEGP Vide Lr no KVTG219223-10259004 to establish this unit, which was forwarded to PNB Kannaigudem Branch. He is eligible for 35% Incentive Subsidy of Rs. 8.75 Lakhs from KVIC as the unit was proposed to be situated in rural area. The firm proposed to start their operations from May 2022.Eligibility of limits: Th: The firm is eligible for TL Rs. 14.25 Lakhs on the total cost of Rs. 15.00 lacs. The margin requirement is Rs. 0.75 lacs at 5% only under KVIC Incentive Subsidy scheme. The subsidy of 35% of total cost will be given after execution and completion of the project and will be kept as a Deposit with the branch for 3 years. It has to be adjusted to Loan account after completion of 3 years of production. The economics of working is worked out on conservative basis. All the estimated financial parameters are at satisfactory levels. Average DSCR is worked out 2.07 and the proposed repayment is feasible. cc: The Firm has estimated turnover of Rs. 58.54 Lakhs (10M) for FY 2022-23 with 50% operating capacity and projected Rs. 77.28 Lakhs for the next year 2020-21 with 55% ‘operating capacity and 5% increase from thereon for fore coming years. The firm is eligible for CC of 9.50 lacs under Inventory Method. The firm proposes to start its operations from May 2022. Sufficient Net Working capital is estimated in the system. Based on demand for products the estimations and projections are considered reasonable and the party is confident about achieving targets. 3, INFRASTRUCTURE AND EQUIPMENT PLANT & MACHINERY AND CIVIL WORKS: ‘The proprietor proposes to purchase the following equipment and Medicines Qty/ Item Tons _| Rate __| Amount RUBBER SHALLER 350000 3.50, Hasker fan Machine 1150000 1.50 Padddy Cleaner 150000 1.00 Whitenour 400000 4,00 Civil Works 5.00 TOTAL 15.00 4, RAW MATERIAL, MAN POWER AND UTILITIES: TERIAL AVAILABILITY AND PROJECT LOCATION: The firm involves in Rice Milling and the raw material is procured from local farmers which is abundantly available in the surrounding area. MAN POWER: The required skilled and un-skilled manpower is readily available. The estimated manpower for the project is given as under Nos Skilled LabourUnskilled labour WATER: To be drawn from Bore well. EFFLUENTS AND POLLUTIONS: No chemical harmful effluents will be generated from the unit. And also does not effect the environment pollution, hence not a polluting industry. 5. SWOT ANALYSIS. STRENGTHS: > Proprietor is having good experience in this industry for more than 10 Years. WEAKNESS: > Low profit margins due to high level competition. > Competition from local Millers. ‘APPROVALS AND LICENCES : The firm has got all the necessary approvals Estimated Time Schedule for implementation: Activity ‘Scheduled date of completion ‘Lease Land Mar 2022 Work Shed Procurement of proposed Equipment | April 2022 Installation & Commissioning | April 2022 COD May 22 FINANCIALS COST OF THE PROJECT : ‘Amount Particulars Rs. In Lakhs Work Shed 5.00 Equipment 10.00 Working Capital 70.00 TOTAL 25.00‘TERM LOAN ELIGIBILITY + Rsinlacs Item ‘Amount | Margin’ [Amount _ | TL Eligibility Equipment 15.00 | 5% 14.25 Working Capital 5% Total 14.25 ‘The margin on the TL as per KVIC scheme is 5% only. They give Incentive subsidy at 35% on project cost of 25.00 lacs amounting to Rs. 8.75 lacs. The amount received will be kept in Deposit with us and will be adjusted after completion of 3 Years of production. This subsidy amount can be treated as Quasi -Equity. MEANS OF FINANCE: Rs in lacs Capital 1.25 TL from Bank 23.75 TOTAL 25.00 Note : The Incentive Subsidy to be received from KVIC at 35% of COP i.e., Rs,. 8.75 lacs is treated as KVIC. PROJECTED OPERATING STATEMEN Rs in lacs Particulars _| Estimations | Projection | Projection | Projection | Projection | Projection | Projection | Projection Year Ended 31.03.22 | 31.03.23 | 31.03.24 | 31.03.25 | 31.03.26 | 31.03.27 | 31.03.28 | 31.03.29 Operating Capacity 50% 55% 6% 65% 75% 10m ‘Operating Income Gross Sales Less : Bucise Net Sales (A) ‘Operating Expenses. 'a) Raw Material Imported Indigenous Dy Stores and Spares Imported Indigenous e)Power and fuel 4) DirectTabour e) Repairs & Naintenance 1) Other Mfg. Expenses, ') Job Work Charges hy Depreciation TOTAL ‘Add: Op Stock of WIP ‘ub Total Less: CL Steck of WiP Cost of Production ‘Add: Op Stock of Finished Goods ‘Sub Total Less: Cl stack of Finished Goods Cost of Sales 1) Admn., Selling and General Exp. 7) Interest on 1 ) Interest on ‘AB Working capital Proprietor Salary Total Operating Expenses (8) ‘Operating Income (A -B) ‘Add: Non Operating Income Less :Non op. Bp. Profit Before Tax Provision for tax Profit After Tax Drawings. Retained Earning ANALYSIS OF BALANCE SHEETS : Rs in lacsParticulars Estimations Projection Projectio Projection Projectio Projection Projectio Projection 31.03.22 31.03.23 31.03.24 31.03.25 31.03.26 31.03.27 31.03.28 31.03.29 LIABILITIES. Capital Subsidy “Surplus/Deficit inP@Lare ‘Shareholders™ Fund (A) Preference share capital Deferred tax Liability “Term oan from banks/FL Vehicle Loan Unsecured loan Loans from directors/retat ives. ‘Other term tia Total Term Liabilities (8) Current Liabilities ‘Short term borrowings from bank (inc. WCDL) ‘Sundry Creditors (Trade) ‘Sundry Creditors for expenses Progress payinents from ‘customers. ‘Other statutory liability ‘Other current liabilities/prov ‘sions "Total Current Liabilities (C) Total Liabilities (A +BeC)PARTICULARS Estimations Projection Projectio Projection Projectio Projection Projectio Projection 31.03.22 31.03.23 31.03.24 31.03.25 31.03.26 31.03.27 31.03.28 31.03.29 Current Assets ‘Cash and bank Balances Investments 'a) Govt/Other Trusty securities ) Fixed Deposits with Banks ‘quoted Investments Receivables ') Outstanding below 6 months ) Outstanding above 6 months Export Receivables, Inventory 'a) Raw material - Indigenous by Raw material Imported ‘) Stores and spares ‘d) Work in Process €) Finished Goods ‘Advances recoverable in ‘cash or kind ‘Advances to Suppliers ‘Advance fo Income tax, (Net) ‘Other Current Assets Total Current Assets (D) ‘Gross Block (Less Revaluation) Less: Depreciation ‘Add: CapitalWork in Progress Net Fixed Assets (E) Non Current Assets Investments in subsidiaries/at filiates ‘Other Investment Total Non Current Assets (F) Intangible Assets ‘Miscellaneous Expenditure to the extent not written off “Trade mark ‘Accumulated Losses Total Intangible Assets (G) Total Assets (D+E+F +6) RATIO ANALYSI: Rs in lacs Analytical & Estimations Projection Projectio Projectio Projection | n Projection Projectio Projection ‘Comparative Ratios. 31.03.22, 31.03.23 31.03.24 31.03.25 | 31.03.26 31.03.27 31.03.28 31.03.29 Tangible Net Worth ‘ales (Net of ‘excise duty) ‘of which a) Domestic Dy) Exports Net Other Income Net Profit7Loss prior to taxation but after ‘depreciation Net Profit after taxation Depreciation provided for Cash Generation WorkingCapital Gap Required Net Working Capital @13% ‘Actual Net Working Capital 0.24 Excess Borrowing @ ABE NW 0.00 Net Profit(Loss)/N let Sales % Net Sales/Net Foied Assets woivio! 0.00 “Total Outside Lability/Tangi ble Net Worth 1450 Debt Equity Ratio ‘Current Ratio ‘Stock of raw material ia terms of No of month Consumption Stock of ‘consumable stores in terms ‘of no of months ‘consumption Work in Process in terms of No. ‘ofmonths of Cost of Production ‘Stock of finished goods in terms of no.of months of cost of sales ‘Sundry Debtors interms of no. ‘of Months Sales (Gross) Gross Sales ‘Sundry Creditors in terms of no of months of purchases 0.00 0.00 0.00 0.00 FUNDS FLOW STATEMENT: Rs in lacs 10|PageFunds Flow Statement Estimations 31.03.22 Projection 31.03.23 Projectio 31.03.24 Projection 31.03.25 Projectio 31.03.26. Projection 31.03.27 Projectio A Projection 31.03.28 | 31.03.29 Long term Sources Retained Profit ‘Add: Actual ‘depreciation charged (Depreciation written back adjusted) Increase in Capital/Share apon. Mon: Increase in ‘erm liability Decrease in Fixed Assets Decrease in Non Current Assets ‘Short Term Sources increase Th Bank Finance Increase in creditors Increase i ‘ther current liabilities Decrease TH inventor Decrease in receivable Decrease if ‘ther current Asset Total Total Sources Long Term Uses. Cash Loss Decrease ia Capital/Share ‘Appn. None} Increase in Fixed Assets 0.00 Increase in Non Current Asset 0.00 Decrease in 2.16 I1|PageTerm abilities ‘Short Term Uses. Decrease ia Bank Finance Decrease in| creditors Decrease ia ‘other current abilities Increase i inventor Increase i receivable Increase in ‘other current asset Total Total Uses ong Term Surplus(+)/Def fete) ‘Short Term ‘Surplus (Deficit ¢) Difference (CASH FLOW STATEMENT : Rs in Year Ended -> Estimations Projectio Projectio Projectio. Projectio. Projectio Projectio Projectio 31.03.22 31.03.23 31.03.24 31.03.25 31.03.26 31.03.27, 31.03.28 31.03.29 ‘Sources of Funds Cash Generation Increase in equity 0.00 Long Term Loans 0.00 Bank borrowings 0.00 Decrease in ‘Current Assets 0.00 Increase in ‘other Current Liabilities Decrease ia other Current assets 0.05 0.00 Total (A) 443 12|Page‘Application of Funds Capital Expenditure: normal Capital work in-progress Decrease in “Term Loans Decrease in Current Liabilities Increase in Current assets Increase in Non ‘Current assets Preliminary Expenses, Total ®) ‘Opening Cash Balance ‘Surplus? Deficit (A-B) ‘Closing Cash Balance WORKING CAPITAL ELIGIBILITY: Rs in lacs The firm is eligible for CC limit of Rs 9.50 under Inventory Method PARTICULARS | Estimation s Projection | Projection | Projection | Projection Projection 31.03.22 | 31.03.23 | 31.03.24 | 31.03.25 | 31.03.26 31.03.28 (ApPosition — of ‘current assets Raw materials Imports Domestic (Months ‘consumption) ‘Consumable stores (months consumption) Stock in process (Months cost of prod) Finished goods (Months cost of Sales) 13|PageReceivables - Export (months sales) Domestic (months sales) ‘Other Current Assets Total (A) (8) Position of Current Liabilities other than Bank Borrowings Creditors for Purchase of RM, stores /spares (months purchases) ‘Ady. from Customers Statutory liabilities ‘Other current Liabilities Total (B) (C) Working Capital Gap (A 5) (0) ‘Minimum | stipulated NWC (13% of CA excl. Export receivables) ©) Actual/Projected NWC (F) Item C Minus Item D (G) Item C Minus Item E (H) Eligible Credit (Item F or G whichever is lower) (I) Excess Borrowings representing shortfall. in NWC (OE) BUILD UP OF NET WORKING CAPITAL : Rs in lacs PARTICULARS Projectio Projection Projection Projection Projection Projection 14|Page31.03.23 31.03.24 31.03.27, NWC as at the beginning of the Year ADD: Retained Profit for the year 0.24 1.78 10.97 227 15.84 3.00 (Net Profit, after tax and dividend) Depreciation ‘Additional Long Term Funds: Increase in Capital/Share Appr Money Tncrease tn Deposits Increase in Term Loans Others ‘SUB TOTAL LESS: Long Term Uses: Reduction in Deposits Reduction in Term Liabilities Increase in Fixed Assets Decrease in capital Others ‘SUB TOTAL NWC as at the end of the Year ‘AS PER BALANCE SHEET ASSUMPTIONS : Installed Capacity No of Hrs per day in 1 shifts No of days p.a Total Installed Capacity Output® Sale Price RS/MT oe 75000 15|PageHusk Rice Bran Broken Rice Waste & Dust Purchase Price of Paddy Income at 100% Capacity: Production Sale Price Sales RS/MT Rs in lacs, Rice 25000 130.00 Husk 900) 1.22 Rice Bran 10000 4.80 Broken Rice Waste & Dust 14000 448 Total 31.03.23, 31.03.24 34.03.25, 31.03.26 | 31.03.27 31.03.28 34.03.29, TOM ‘Operating capacity | 50% 55 60% OE 70% 7% 80% Sales 77.28 71.33 105.38 Paddy Consumption = mT Purchase price RS/MT Total Purchases Rs pa Rs in lacs, 34.03.23 31.03.24 31.03.25, 31.03.26 31.03.28 31.03.29, ‘Operating capacity Purchases Rs/Qtt Rs/MT Rein lacs 16|Page[Sette] el ipeaiae] 34.03.23 | 31.03.24 | 31.03.25 | 31.03.26 | 31.03.27 | 31.03.28 | 31.03.29 Power charges 0.93 1.23 134 1.46 1.57 1.68 1.79 Labour : Rs/Qet RS/MT Rs in lacs pea 34.03.23 | 31.03.24 | 31.03.25 | 31.03.26 | 31.03.27 | 31.03.28 | 31.03.29 2.83 3.74 4.08 4a2 476 3.10 3.44 ‘Other Mig Rs/Qtt Expenses : S/T Rs in lacs p.a 31.03.23, 31.03.25 | 31.03.26 | 31.03.27 | 31.03.28 ‘Other Exps 083 1.20 730 1.40 1.50 DEPRECIATION : 2021-22 | 20-23 | 202-24 | 202475 | 2025-26 | 2026-27 2028-29 Cost /WOV | 10.00 | 10.00 [850 [7.23 (614 | 5.22 E 377 ‘Addition Tess: Depn. 7.50 7.08 078 wov 8.50 6.14 444 Civil Works. 10% 2ODi-22 | 2022-23 | 2023-24 2025-26 Cost 7 WOV 5.00 [5.00 | 450 i 3.65 ‘Addition Less: Depn. 0:36 WoV x 3.28 Total Dep - 200 [4.73 "TERM LOAN REPAYMENT SCHEDULE 17|PageTL of Rs. 14.25 lacs . Disbursement in Feb 22. TL repayable in 80 MI @ Rs. 0.18 lacs (last installment being Rs 0.03) with 3 months holiday. Repayment commences June 2022 (interest rate is assumed at 11%... Repayment Schedule: Rs in lacs DOU | 1S | WIFI | WI 2006-27 | 2027-28 | 2028-29 Principal 1425 1425—*( 12.45 —*| 10.29 597 [3811.65 Less Repayment 180 |216 (2.16 216 [216 | 1.65 Balance TL 1245_/[ 10.29 | 8.13, 3a [1.65 ~~ Principal Repayment April ‘May Jun uly August September October November December January February March Balance 4.25 Balance at the end of each Rs in lacs 202-2 WII | 2024S 2027-28 ‘Aprit a7 [10.11 3.63 may 12.09 | 9.93 3.45 Jun’ 191/975 3.7 aay 1.73 [9.57 3.09 August 11.55 [9.39 29 September 37/924 273 October 5 a 255 November 11.01 [8.85 2.37 December 10.83 | 8.67 219 January 10.65 | 8.49 2.01 February 10.47 [8.31 1.8 March 10.29 [8.13 1.65 18|PageINTEREST SCHEDULE (Rate of Interest assumed at 11%) 2ON-2 | 2022-23 | 2023-24 | 2024-25 2026-27 | 2027-28 | 2028-29 INTEREST Aprit : O73 [003 [0.01 0.05 [0.03 | 0.01 may O73 (0.03 [0.01 0.05 [0.03 | 0.01 Jun 013 (0.03 [0.01 0.05 [0.03 | 0.01 duly zi O13 (0.03 [0.01 0.05 [0.03 | 0.07 August zi 073 [0.03 [0.01 0.05 [0.03 | 0.08 September a2 (0.02 [0.00 0.04 [0.03 | 0.01 October 012 (0.02 [0.00 0.04 [0.02 | 0.00 November 0.12 10.02 [0.00 0.04 [0.02 | 0.00 December 5 O12 | 0.02 | (0.00) 0.04 [0.02 | 0.00 January O72 | 0.02 0.04 [0.02 | 0.00 February O73 [004/002 ‘| 0.04 [0.02 | 0.00 ‘March 013 [0.03 0.01 0.03 [0.02 | 0.00 Total 026 | 1.32 (0.28 0.53 0.06 TOTAL COMMITMENT : 202-22 | 2022-73 | 202I-24 | 2024-25 | 2025-26 | 2026-27 | 2027-28 | 2028-29 interestonTL [0.26 | 1.32 (0.28 [0.05 [0.11 [053 [029 |0.06 TL Repayment 180 [216 [246 (246 [216 | 246 Total Bi *(| had 269 DSCR : NORMAL Rs in lacs 2021-22 | 2022-23 | 2023-24 | 2024-25 2026-27 2028-29 | Total 19|PageNet Profit Depreciation Interest on 1 (AY 418 Principal 2.16 Interest 0.05 () 32 aa za DSCR (A7B) 1.4 115 189 The proposed repayment schedule is feasible. 2|Page