RE COMPACT CNG AUTO

Promoted by
Mr. Deepu .B
Address
TC 38/732-3, Sreelakam,Manchadimoodu
Vattiyoorkavu PO, Trivandrum 695013
Auto Rickshaw

Prepared by

Mahesh MV
Mob: 9995556874
Arthajothi
2nd Floor
Anitha Towers
Opp SBI Vazhuthacaud
Trivandrum 695014

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PROJECT REPORT

RE COMPACT CNG AUTO

TC 38/732-3, Sreelakam,Manchadimoodu
Vattiyoorkavu PO, Trivandrum 695013

Promoted by

Mr. Deepu .B

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Name of Project RE COMPACT CNG AUTO
Promoted by Mr. Deepu .B
Nature of business To purchase a RE COMPACT CNG auto
Address TC 38/732-3, Sreelakam,Manchadimoodu
Vattiyoorkavu PO, Trivandrum 695013
Nature of business
1 Local Transportation for passengers
2 School students trasportaion
3 Pre booked tourist travels

Promoter Working capital

Particulars Contribution Term loan loan
RE Compact CNG 65,000.00 2,33,633.00
Total 65,000.00 2,33,633.00 -
Total Project cost 2,98,633.00
Term Loan 2,33,633.00
Capital Contribution 65,000.00 2,98,633.00

Rate of interest 11.50%

Repayment Period in yrs 5.00
Repayment Period in months 60.00
Monthly EMI 5,138.20
Revenue from operation for the first year 7,00,000.00

Capital Contribution
22%Term Loan Capital Contribution

Term Loan
78%

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 Auto Rickshaw
Project at a Glance
The project is envisaged and prepared by Mr. Deepu .B in a view to avail
a bank loan for Rs 2.33633 lakh To purchase a RE COMPACT CNG auto

The total project cost is estimated for Rs 298633 out of which the
promoter will contribute Rs 65000 as capital contribution . Balance Rs
233633 is proposed to raise from a bank with an annual interest of 11.5
percentage

The monthly EMI is expected for Rs 5138 which can be easily repaid from
the revenue generated from the business itself which very evident in the
financial projection

The proposed business have following main core field of business activity
Local Transportation for passengers
School students trasportaion
Pre booked tourist travels

Project Cost and Financial Summary Amount

The total project cost is estimated at Rs 2,98,633.00
Woking Capital Loan -
Term Loan 2,33,633.00
Capital Contribution 65,000.00

Chart Title

Capital Contribution

Term Loan

Woking Capital Loan

The total project cost is estimated at Rs

- 1,00,000.00 2,00,000.00 3,00,000.00

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Project Overview

The RE COMPACT CNG AUTO project, led by Mr.

Deepu .B, envisions a sustainable and efficient local
transportation service based in Trivandrum. The
venture's core focus lies in the operation of RE
COMPACT CNG autos, emphasizing the use of
Compressed Natural Gas (CNG) as a cleaner and more
environmentally friendly fuel source. The business,
situated at TC 38/732-3, Sreelakam, Manchadimoodu,
Vattiyoorkavu PO, Trivandrum 695013, is poised to The nature of the business is diverse, catering
address the transportation needs of the community to the transportation needs of the local
through three primary services: local transportation for population, particularly in the areas of
passengers, school student transportation, and pre- Vattiyoorkavu and beyond. Local
booked tourist travels. transportation services aim to enhance
In terms of financial structuring, the project's total cost connectivity within the city, offering a reliable
is estimated at ₹2,98,633, with Mr. Deepu .B and convenient mode of commuting for
contributing ₹65,000 as the promoter's share. The residents. Simultaneously, the project has a
majority of the project's funding, amounting to dedicated focus on school student
₹2,33,633, is secured through a term loan. Notably, no transportation, ensuring the safe and secure
specific working capital loan is indicated, suggesting transit of students to and from educational
that the working capital requirements will be managed institutions. This commitment aligns with the
through other means. The term loan, carrying an broader goal of contributing positively to the
interest rate of 11.50%, is structured for repayment over community by facilitating education
a period of 5 years, with a monthly installment of accessibility. Additionally, the project intends
₹5,138.20. This financial arrangement reflects a carefully to tap into the tourism sector by providing pre-
booked tourist travel services, offering a
seamless and enjoyable experience for visitors
exploring the region.
The financial projections for the first year of
operation are encouraging, with a projected
revenue of ₹7,00,000. This revenue is expected
to be generated through the diverse range of
transportation services offered by the project.
The figure underscores the potential demand
for the services provided, indicating a
promising start for the business. It is crucial for
the management to effectively execute
operational plans and maintain service quality

In conclusion, the RE COMPACT CNG AUTO project stands as a commendable initiative in the realm of
sustainable and diversified transportation services. Mr. Deepu .B's commitment to environmental
consciousness through the use of CNG, coupled with a well-defined business model and financial structure,
positions the project for success. As it embarks on its journey, the venture has the potential for growth and
positive impact, contributing significantly to the local community's mobility needs while fostering
environmental responsibility. With effective management and a customer-centric approach, the RE
COMPACT CNG AUTO project holds the promise of establishing a resilient and successful presence in the
transportation sector in Trivandrum.

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RE Compact CNG Cost Split Up

Particulars Amount
Chart Title
RE Compact CNG 2,62,974.00
Registration Charge 1,200.00
Fare Meter
Road Tax 2,500.00
Fittings, Upholsary , Painting etc
Insurance 13,834.00
Body Frame Work
Body Frame Work 8,900.00
Fittings, Upholsary , Painting etc 5,375.00 Insurance
Fare Meter 3,850.00 Road Tax
Total 2,98,633.00 Registration Charge
RE Compact CNG

- 50,000.00
1,00,000.00
1,50,000.00
2,00,000.00
2,50,000.00
3,00,000.00
RE Compact CNG: ₹2,62,974.00
This represents the bulk of the
product cost, encompassing the
purchase of the RE COMPACT CNG
auto itself.
Registration Charge: ₹1,200.00
This includes the expenses
associated with registering the
vehicle with the appropriate
authorities.
Road Tax: ₹2,500.00
Road tax is an obligatory expense
that contributes to government
revenue and is paid for the right to
use the road.
Insurance: ₹13,834.00
This covers the cost of insurance, a
crucial component to ensure
coverage against potential risks and
liabilities.
Body Frame Work: ₹8,900.00
The expenses related to the body
frame work of the auto, which may
include structural enhancements or
modifications for safety and
aesthetics.
Fittings, Upholstery, Painting, etc.:
₹5,375.00
These costs encompass various
fittings, upholstery for the seats,
painting, and other aesthetic and
functional enhancements to the
auto.
Fare Meter: ₹3,850.00
The fare meter cost is associated
with installing the necessary The aggregate of all the individual costs listed above
equipment for accurately measuring represents the total product cost for the RE COMPACT CNG
and displaying fares for passengers. auto. This includes not only the acquisition of the vehicle but
Total Product Cost: ₹2,98,633.00 also the essential expenses associated with making it
roadworthy, compliant with regulations, and suitable for the
intended transportation services.

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INDUSTRY OVERVIEW

The transportation industry plays a pivotal role in facilitating

the movement of people and goods, contributing significantly
to economic development and connectivity. The RE COMPACT
CNG AUTO project, focusing on local transportation services,
falls within the broader spectrum of the transportation
industry. Here's an overview of the industry, considering both
the general transportation sector and the specific niche of CNG-
based auto services:
Transportation Industry Overview:
1. Diversified Segments:
The transportation industry encompasses various segments,
including road transport, rail, air, and sea transport.
Within road transport, sub-sectors like public transit, private
vehicles, and specialized services such as school and tourist
transportation contribute to the overall landscape.
2. Economic Significance:
Transportation is a critical driver of economic activity,
influencing trade, commerce, and accessibility. Efficient
transportation systems enhance productivity and contribute to
regional and national development.
3. Technological Evolution:
The industry has witnessed technological advancements,
ranging from traditional fuel-powered vehicles to the
integration of alternative fuels and electric vehicles.
Innovations in logistics and tracking systems have improved
efficiency, safety, and customer satisfaction.
4. Environmental Concerns:
Increasing environmental awareness has led to a shift towards
sustainable transportation solutions. Governments and
businesses are adopting eco-friendly alternatives to reduce
carbon emissions.
Future Outlook:
The transportation industry is poised for
continuous evolution, driven by technological
innovations and a growing emphasis on
sustainability. The RE COMPACT CNG
AUTO project, by leveraging CNG
technology, positions itself at the forefront of
this transformation. As the industry continues
to respond to environmental concerns and
customer preferences, businesses that embrace
clean energy solutions are likely to play a
significant role in shaping the future of
transportation. The success of the project will
depend on its ability to adapt to market
dynamics, provide reliable services, and
contribute to the broader goals of sustainable
and efficient transportation.

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Financial Summary
The financial summary of the RE COMPACT CNG
AUTO project offers a comprehensive view of its
funding structure, loan terms, and revenue
projections, providing crucial insights into the
project's financial viability. With a total project cost
of ₹2,98,633, the funding is sourced from both the
promoter and external financing. Mr. Deepu .B's
contribution of ₹65,000 showcases a personal
commitment to the project, aligning his interests
with its success. The lion's share of the funding,
amounting to ₹2,33,633, is secured through a term Examining the funding structure, the blend of
loan. The 11.50% interest rate on the term loan, promoter contribution and term loan reflects a
coupled with a 5-year repayment period and a balanced approach. While external financing
monthly EMI of ₹5,138.20, reflects a well-structured provides the necessary capital for the acquisition of
and feasible financing arrangement. The absence of RE COMPACT CNG autos and operational
a specific working capital loan suggests that expenses, the promoter's personal investment
operational liquidity needs may be managed demonstrates confidence in the project's prospects.
through other means or existing resources. The The term loan terms, including the interest rate and
revenue projection for the first year is an ambitious repayment period, are within reasonable
₹7,00,000, underscoring the project's growth parameters, ensuring that the monthly EMI is
potential and market demand for its transportation manageable for the business. This financial prudence
services. suggests a thoughtful approach to debt
management, minimizing financial strain and
maximizing operational flexibility
The revenue projection of ₹7,00,000 for the first year
is a pivotal aspect of the financial summary. While
the figure indicates a healthy anticipated income,
achieving this target will depend on effective
business operations, marketing strategies, and the
actual demand for the transportation services
provided. A detailed analysis of the market
dynamics, competition, and customer preferences
will be crucial in aligning the business strategies
with the revenue goals.
In conclusion, the financial summary of the RE
COMPACT CNG AUTO project paints a promising
picture of a well-structured financial plan, blending
promoter contribution and external financing
judiciously. The terms of the term loan are
reasonable, indicating a strategic approach to debt
management. The ambitious revenue projection
signals growth aspirations, but the actualization of
this projection will depend on the project's
operational efficiency and its ability to capture and
retain a significant share of the local transportation
market. As the project progresses, ongoing financial
monitoring and adaptive strategies will be essential
to navigate potential challenges and ensure
sustainable financial success.
.

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Location Significance

The location of the RE COMPACT CNG AUTO

project at Trivandrum holds significant importance
for the success and impact of the business. The
location's significance can be analyzed from various
perspectives:
1. Strategic Geographical Position:
Trivandrum, being the capital city of the Indian state
of Kerala, is a strategically important location. It
serves as a hub for various economic activities,
government institutions, and cultural events.
2. Local Transportation Demand:
The choice of Trivandrum suggests an understanding
of the local transportation demand. As a bustling city
with a growing population, there is a continuous
need for reliable and efficient transportation services.
3. Proximity to Educational Institutions: 6. Community Engagement Opportunities:
The project's focus on school student transportation The local community in Trivandrum offers
becomes more significant in the context of opportunities for community engagement and
Trivandrum, which is home to numerous educational collaboration. Building strong ties with the
institutions. Proximity to schools enhances the community can contribute to the project's success and
potential customer base for this specific service. sustainability.
4. Tourism Potential: 7. Government Initiatives and Support:
Trivandrum, being a prominent tourist destination, Being the capital city, Trivandrum may benefit from
offers a substantial market for pre-booked tourist government initiatives and support for sustainable
travel services. The project can tap into the tourism and eco-friendly ventures. This could include
potential of the region, providing convenient and incentives for businesses promoting clean energy
planned transportation for visitors. solutions.
5. Urban and Suburban Connectivity: 8. Competitive Landscape:
The location's address, which includes Understanding the competitive landscape in
Vattiyoorkavu,Trivadrum suggests a presence in Trivandrum is crucial. Identifying and analyzing
both urban and suburban areas. This diversification competitors in the local transportation sector helps the
in coverage enhances the project's accessibility and project position itself effectively.
reach. 9. Transportation Infrastructure:
Trivandrum's existing transportation infrastructure,
including roads and connectivity, plays a vital role in
the ease of operation for the RE COMPACT CNG
AUTO project.
10. Cultural and Social Dynamics:
Trivandrum's unique cultural and social dynamics
influence consumer behavior. Adapting the services to
align with local preferences and cultural nuances is
essential for the project's acceptance.
11. Potential for Expansion:
The strategic location may also open avenues for
potential expansion. Understanding the dynamics of
neighboring areas allows the project to explore
opportunities for growth beyond the initial location.

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About the promoter

Mr. Deepu .B, the promoter of the RE COMPACT
CNG AUTO project, plays a pivotal role in steering
the business towards its objectives. As the driving
force behind the venture, Mr. Deepu .B brings a
unique blend of entrepreneurial spirit, vision, and
commitment to sustainability.
His decision to focus on Compressed Natural Gas
(CNG) as the primary fuel source for the RE
COMPACT CNG autos reflects a keen awareness of
environmental issues and a dedication to sustainable
practices. By choosing CNG, Mr. Deepu .B not only
aligns the project with eco-friendly principles but
also positions it as a responsible player in the
transportation industry.
The promoter's address at TC 38/732-3, Sreelakam,
Manchadimoodu, Vattiyoorkavu PO, Trivandrum
695013, indicates a local connection and an
understanding of the specific needs and dynamics of
the Trivandrum community. This localized approach
can be advantageous in tailoring transportation
services to meet the unique requirements of the
region.
Contributing ₹65,000 as the promoter's share, Mr.
Deepu .B demonstrates financial commitment and
confidence in the success of the project. This personal Mrs.K
investment underscores his belief in the viability of
wh
the business model and his dedication to its long-
The success of the RE COMPACT CNG AUTO term growth.
project will, to a large extent, be influenced by his
leadership, decision-making capabilities, and
strategic vision. As the project unfolds, Mr. Deepu
.B's ability to navigate challenges, capitalize on
opportunities, and effectively manage the
operational aspects of the business will be crucial to
its overall success.
In conclusion, Mr. Deepu .B emerges as a promoter
with a forward-thinking approach, integrating
environmental considerations into the business
model and demonstrating a commitment to local
community needs. His role will be pivotal in
shaping the trajectory of the RE COMPACT CNG
AUTO project and determining its impact on both
the transportation sector and the community it
serves.

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Products and Services
The RE COMPACT CNG AUTO project aims
to provide a range of transportation services,
focusing on local mobility needs. The services
offered by the project are designed to cater to
different segments of the community,
ensuring accessibility, convenience, and eco-
friendly transportation. Here are the key
services offered:
1. Local Passenger Transportation: 4. Eco-Friendly Transportation with CNG Autos:
The core service involves providing local The project distinguishes itself by using RE COMPACT
transportation solutions for residents within CNG autos, which operate on Compressed Natural Gas.
the operational area. CNG is a cleaner and more environmentally friendly fuel
Passengers can avail themselves of the RE option, contributing to reduced emissions and aligning
COMPACT CNG autos for daily commuting, with sustainable transportation practices.
offering a reliable and efficient mode of 5. Reliable and Punctual Service:
transport. The emphasis is on providing reliable and punctual
2. School Student Transportation: transportation services.
A specialized service is dedicated to Timely arrivals and departures are crucial for meeting the
transporting school students to and from their commuting needs of passengers, students, and tourists.
educational institutions. 6. Customer-Focused Approach:
The project recognizes the importance of safe The project prioritizes customer satisfaction by maintaining
and punctual transport for students, a customer-focused approach.
providing a valuable service for both parents Feedback mechanisms, customer support, and a
and educational institutions. commitment to service quality contribute to a positive
3. Pre-Booked Tourist Travels: customer experience.
Catering to the tourism sector, the project 7. Affordable and Transparent Pricing:
offers pre-booked tourist travel services. The project strives to offer affordable transportation
Tourists and travelers can arrange for solutions to the community.
transportation in advance, ensuring a Transparent pricing models ensure that customers are
convenient and planned travel experience. aware of the costs associated with the services.
8. Adherence to Regulatory Standards:
The transportation services adhere to all regulatory
standards and safety requirements.
Compliance with transportation regulations ensures the
safety and well-being of passengers and other road users.
9. Community Engagement and Collaboration:
The project actively engages with the local community and
collaborates with other stakeholders.
Community involvement and partnerships contribute to
the success and sustainability of the transportation services.
10. Technology Integration:
The project may leverage technology for services such as
online booking, GPS tracking, and digital communication
with customers.
Technological integration enhances the efficiency and
convenience of the transportation services

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PROJECT ASSUMPTION
The successful execution of the RE COMPACT CNG
AUTO project relies on a set of foundational
assumptions that guide planning and
implementation. These assumptions serve as the
basis for key decision-making processes and impact
the overall feasibility and success of the project.
Here are the primary project assumptions:
1. Stable and Growing Market Demand:
Assumption: There is a sustained and growing
demand for local transportation services in
Trivandrum, encompassing passengers, school
students, and pre-booked tourist travels.
Rationale: Meeting the transportation needs of
diverse customer segments is vital for the project's
sustainability and growth.
2. Positive Perception of CNG Technology:
Assumption: The target market has a positive
perception of Compressed Natural Gas (CNG)
technology and values its eco-friendly attributes.
Rationale: Customer acceptance of CNG as a clean 5. Competitive Positioning and Differentiation:
and sustainable fuel source is crucial for the project's Assumption: The project can effectively position itself in
success. the competitive local transportation market by
3. Effective Operational Performance: differentiating its services through eco-friendly
Assumption: The RE COMPACT CNG autos will technology.
exhibit reliable and efficient operational Rationale: Strategic differentiation is essential for
performance, ensuring on-time and safe attracting customers and standing out in a crowded
transportation services. market.
Rationale: Operational excellence is fundamental to 6. Customer Satisfaction and Loyalty:
meeting customer expectations and building a Assumption: Providing reliable, customer-centric
positive reputation. services will result in high levels of customer satisfaction,
4. Government Support for Clean Energy leading to repeat business and customer loyalty.
Initiatives: Rationale: Satisfied customers are more likely to become
Assumption: Regulatory bodies will provide repeat clients and act as advocates for the project.
support and incentives for businesses adopting 7. Collaboration Opportunities with Institutions:
clean energy solutions, such as CNG-powered Assumption: Collaborations with local educational
vehicles. institutions, businesses, and tourism-related entities for
Rationale: Government support can positively transportation services are feasible and mutually
influence the project's financial viability and beneficial.
sustainability. Rationale: Partnerships can enhance the project's reach
and contribute to a diversified customer base.
8. Technology Adoption by Target Audience:
Assumption: The target market is open to adopting
technology for transportation services, including online
booking systems, GPS tracking, and digital
communication.
Rationale: Technological integration can improve
operational efficiency and enhance customer experiences.
9. Economic Stability and Consistent Demand:
Assumption: Local and regional economic conditions
will remain stable, supporting consistent business
growth and a steady demand for transportation services.
Rationale: Economic stability is critical for maintaining
customer demand and financial sustainability.

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Our Target Market 5. Special Events and Occasions:
The project can target individuals or groups
attending special events, ceremonies, or
celebrations. Providing transportation services
for weddings, parties, or religious events can be
a lucrative market segment.
Collaborating with event organizers or
marketing the service as an event
transportation solution can attract this market.
6. Environmental Conscious Consumers:
Consumers who prioritize environmentally
friendly options may choose the RE COMPACT
CNG autos over traditional fuel vehicles. The
The target market for the RE COMPACT CNG project's use of CNG aligns with the
AUTO project is diverse, encompassing various preferences of environmentally conscious
segments within the local community in individuals.
Trivandrum. The project aims to cater to the Marketing efforts highlighting the project's
transportation needs of different customer groups commitment to sustainability can resonate with
with a focus on providing reliable, eco-friendly, this segment.
and affordable services. Here is an analysis of the 7. Collaborations with Institutions:
primary target markets: Establishing partnerships with educational
1. Local Residents for Daily Commuting: institutions, businesses, and government
The primary target includes local residents who organizations can create a steady stream of
require daily commuting services within the city. customers. Collaborative agreements for
This could involve individuals traveling to work, transportation services can be mutually
running errands, or attending social events. beneficial.
The convenience, reliability, and eco-friendly Institutions that encourage sustainable
nature of the RE COMPACT CNG autos make practices may find the eco-friendly aspect of the
them an attractive option for everyday commuting project appealing.
needs. 8. Digital and Tech-Savvy Users:
2. School Students and Parents: Targeting individuals who prefer digital
A significant segment of the target market platforms for booking and tracking
comprises parents and school students. The project transportation services. Implementing online
aims to provide safe and punctual transportation booking systems, mobile apps, and GPS
services for students traveling to and from tracking can attract tech-savvy customers.
educational institutions. Marketing strategies through digital channels
Parents seeking a trustworthy and efficient mode can enhance the project's visibility among this
of transport for their children are potential segment.
customers for the school student transportation 9. Elderly Population:
service. The project may consider catering to the
3. Tourists and Travelers: transportation needs of the elderly population.
The pre-booked tourist travel service targets Providing convenient and comfortable services
tourists and travelers visiting Trivandrum. The for seniors who may require assistance during
city's status as a tourist destination creates an travel.
opportunity to offer planned and convenient Specialized services, such as door-to-door
transportation for sightseeing and exploration. assistance, can be developed to address the
Building partnerships with local tourism agencies unique requirements of this demographic.
or hotels can enhance the project's visibility and Understanding the diverse needs and
appeal to this segment. preferences of these target markets is essential
4. Business and Corporate Travel: for effective marketing, service customization,
Business professionals and corporate travelers who and ensuring a broad customer base for the RE
require reliable transportation for meetings, COMPACT CNG AUTO project. Strategic
conferences, and other business-related activities marketing campaigns and personalized
are part of the target market. services can contribute to capturing and
Offering corporate packages or establishing retaining customers within these identified
partnerships with businesses can attract this segments.
customer segment.

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Pricing Strategy
The pricing strategy for the RE COMPACT CNG 5. Promotional and Package Pricing:
AUTO project is designed to be competitive, To encourage customer loyalty and attract more
transparent, and reflective of the value proposition business, promotional pricing and package deals
offered to the diverse target markets in Trivandrum. may be introduced. This could include discounted
The pricing strategy takes into account factors such as rates for bulk bookings, special rates for frequent
operating costs, market demand, and the unique customers, or promotional offers during specific
selling points of the project. Here's an elaboration of periods.
the key elements of the pricing strategy: Package pricing for pre-booked tourist travels or
1. Affordability and Accessibility: event transportation can add an element of
The primary objective is to make the transportation flexibility for customers.
services affordable and accessible to a wide range of 6. Dynamic Pricing for Peak Hours:
customers. Competitive pricing ensures that the Dynamic pricing strategies may be implemented
services remain attractive to local residents, students, during peak hours or high-demand periods. This
and tourists. allows the project to optimize revenue while
2. Transparent and Clear Pricing Models: providing flexibility to customers who may choose
Transparency is crucial in building trust with alternative timings to benefit from standard pricing.
customers. Clear and straightforward pricing models Digital platforms and mobile apps can facilitate
will be communicated to customers, detailing the costs dynamic pricing adjustments based on real-time
associated with different services. demand.
Additional charges, if any, will be explicitly 7. Community Engagement and Loyalty Programs:
communicated to avoid any surprises for customers. Community engagement initiatives, such as loyalty
3. Segmented Pricing for Different Services: programs or partnerships with local businesses, can
Recognizing the diverse needs of the target markets, be leveraged to offer discounts or exclusive benefits
the pricing strategy incorporates segmentation for to repeat customers.
different services. For example, school student Establishing a connection with the community
transportation may have a distinct pricing structure through special pricing initiatives fosters customer
compared to pre-booked tourist travels. loyalty.
Segment-specific pricing allows for customization 8. Continuous Market Monitoring and
based on the unique requirements of each customer Adjustment:
group. The pricing strategy will be dynamic, with
4. Eco-Friendly Premium: continuous monitoring of market trends, competitor
The use of RE COMPACT CNG autos, known for their pricing, and customer feedback. Regular
eco-friendly attributes, provides a unique selling adjustments will be made to stay competitive and
proposition. A slight premium may be applied to responsive to changes in the business environment.
highlight the environmental sustainability of the 9. Educational Campaigns on Value Proposition:
services. Communication efforts will include educational
Customers who prioritize environmentally responsible campaigns to highlight the value proposition of
choices may find value in supporting a project that choosing RE COMPACT CNG autos. Emphasizing
aligns with their values. the benefits of eco-friendly transportation can
justify the pricing and create a positive perception
among customers.
In essence, the pricing strategy for the RE
COMPACT CNG AUTO project is a thoughtful
blend of affordability, transparency, and
differentiation. By aligning with the unique needs
of the target markets and emphasizing the eco-
friendly aspect, the project aims to not only provide
competitive services but also contribute to the local
community's sustainable and responsible
transportation options.

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Business Vertical and sales estimates

In a business plan, the monthly break-up of sales is a crucial component as it provides important information to investors and
stakeholders about the potential success of the business. Specifically, a monthly break-up of sales in a business plan can:
• Demonstrate the viability of the business: A well-researched and realistic monthly break-up of sales in a business plan shows
investors and stakeholders that the business has a solid understanding of its market and has the potential to generate revenue.
• Support financial projections: The monthly break-up of sales in a business plan is used to support financial projections, such as
projected revenue, profit, and cash flow. This information is critical in convincing investors and stakeholders that the business
has a solid plan for financial success.
• Provide a roadmap: A monthly break-up of sales in a business plan serves as a roadmap for the business, helping it stay on track
and achieve its goals. The plan can be revised and updated as needed based on actual sales performance.
• Help secure funding: By demonstrating a solid understanding of the market and the potential for sales growth, a monthly break-
up of sales in a business plan can help a business secure funding from investors and lenders.
12-Month Sales Forecast

Rupees in Lakh
Product Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total
Local Transportation for passengers 0.16 0.17 0.19 0.20 0.22 0.24 0.25 0.27 0.28 0.30 0.31 0.33 2.92
School students trasportaion 0.13 0.14 0.15 0.16 0.18 0.19 0.20 0.21 0.23 0.24 0.25 0.26 2.33
Pre booked tourist travels 0.09 0.10 0.11 0.12 0.13 0.14 0.15 0.16 0.17 0.18 0.19 0.20 1.75
Total 0.38 0.41 0.45 0.49 0.53 0.56 0.60 0.64 0.68 0.72 0.75 0.79 7.00

12-Month Sales Forecast

0.90
0.80
0.70
0.60 Pre booked tourist
0.50 travels
0.40 School students
0.30 trasportaion
0.20 Local Transportation
for passengers
0.10
0.00

Total Total
Month 1 0.90
5% Month 2
6% 0.80
Month 12
11% 0.70

Month 3
0.60
Month 11 6%
11%
Month 4 0.50
7%
Month 10 0.40
Month 5
10%
8%
0.30

Month 9 Month 6 0.20

10% 8%
Month 8 Month 7 0.10
9% 9%

0.00
1 2 3 4 5 6 7 8 9 10 11 12

16
 Auto Rickshaw

Raio analysis -Significance

Ratio analysis is a powerful tool of financial analysis. In financial analysis, a ratio

is used as a benchmark for evaluation the financial position and performance of a
firm. The absolute accounting figures reported in the financial statements do not
provide a meaningful understanding of the performance and financial position of
a firm. An accounting figure conveys meaning when it is related to some other
relevant information. The relationship between two accounting figures expressed
mathematically, is known as a financial ratio . Ratios help to summarize large
quantities of financial data and to make qualitative judgment about the firm’s
financial performance.

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

DSCR 3.76 4.12 4.26 4.67 5.10
TOL ADJ/TNW 0.04 0.03 0.03 0.02 0.02
Interest Coverage ratio 9.21 12.27 16.75 28.24 78.75
Asset Coverage ratio 1.46 1.78 2.40 4.22 97.48
BEP 25% 20% 18% 15% 9%
Cash Ratio 5.33 7.19 7.62 6.13 6.53
Gross Profit 33.86 34.26 32.84 33.26 33.65
Debt Equity Ratio 0.04 0.03 0.03 0.02 0.02
Proprietory 3.18 2.29 1.73 1.32 1.02
Quick Ratio 7.17 11.35 13.12 13.86 14.66
Current Ratio 7.17 11.35 13.12 13.86 14.66
Operating Expenses ratio 74.74 72.71 73.13 71.76 69.40

97.48
DSCR TOL ADJ/TNW Interest Coverage ratio
10.00 100.00
4

4.22
2.40
1.78
1.46

50.00
- 1
-
1 2 3 4 5 - 0.02 0.04 1 2 3 4 5 ASSET COVERAGE RATIO

BEP Gross Profit Debt Equity Ratio

50% 36.00 5
34.00 3
0%
32.00 1
1 2 3 4 5
1 2 3 4 5 - 0.01 0.02 0.03 0.04

Proprietory Quick Ratio Current Ratio Operating Expenses

80.00 ratio
5.00 5 20.00
75.00
- 3 10.00 70.00
0 2 4 6
1
- 65.00
Proprietory - 5.00 10.00 15.00 20.00 1 2 3 4 5 1 2 3 4 5

17
 Auto Rickshaw
Projected Profit and Loss Account
PARTICULARS Year-1 Year-2 Year-3 Year-4 Year-5
By Direct Income 3.00 3.00 3.00 3.00
" Revenue from operation 7,00,000.00 7,56,000.00 8,16,000.00 8,81,000.00 9,51,000.00
Total 7,00,000.00 7,56,000.00 8,16,000.00 8,81,000.00 9,51,000.00
To Direct Expenses
" Fuel cost 4,06,000.00 4,38,000.00 4,73,000.00 5,11,000.00 5,52,000.00
" Consumables 16,000.00 16,000.00 16,000.00 16,000.00 16,000.00
" Repairs & Maintanance 18,000.00 19,000.00 20,000.00 21,000.00 22,000.00
" Rates and taxes 21,000.00 22,000.00 23,000.00 24,000.00 25,000.00
" Fitness works reparing charge 14,000.00 14,000.00 14,000.00
" Other direct expenses 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
Total 4,63,000.00 4,97,000.00 5,48,000.00 5,88,000.00 6,31,000.00
To Gross Profit 2,37,000.00 2,59,000.00 2,68,000.00 2,93,000.00 3,20,000.00
GP Ratio 33.86 34.26 32.84 33.26 33.65
To Indirect Expenses
" Miscellaneous exp 200.00 200.00 200.00 300.00 300.00
" Interest on term loan 25,000.00 20,500.00 15,500.00 9,900.00 3,700.00
" Uniform and other expenses 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
" Depreciation 30,000.00 27,000.00 28,000.00 29,000.00 20,000.00
Total 60,200.00 52,700.00 48,700.00 44,200.00 29,000.00
Net Profit before tax 1,76,800.00 2,06,300.00 2,19,300.00 2,48,800.00 2,91,000.00
Income tax - - - - -
Net Icome After Tax 1,76,800.00 2,06,300.00 2,19,300.00 2,48,800.00 2,91,000.00
Net Icome After Tax % 25.26 27.29 26.88 28.24 30.60
Average NP ratio 27.65

Net Profit before tax

4,00,000.00
3,00,000.00
2,00,000.00
1,00,000.00
-
1 2 3 4 5

Net Profit before tax

3,50,000.00
3,00,000.00
2,50,000.00
2,00,000.00
1,50,000.00
1,00,000.00
50,000.00
-
1 2 3 4 5

18
 Auto Rickshaw

Projected Balance Sheet

Liabilities Year-1 Year-2 Year-3 Year-4 Year-5

Capital Account 65,000.00 91,800.00 1,23,100.00 1,56,400.00 1,94,200.00

Profit after tax 1,76,800.00 2,06,300.00 2,19,300.00 2,48,800.00 2,91,000.00
Drawings 1,50,000.00 1,75,000.00 1,86,000.00 2,11,000.00 2,44,000.00
Sub Total 91,800.00 1,23,100.00 1,56,400.00 1,94,200.00 2,41,200.00
Term Loan 1,96,900.00 1,55,800.00 1,09,700.00 58,000.00 -
Current Liabilities
Expenses Payable 1,750.00 1,900.00 2,100.00 2,300.00 2,500.00
Other Current Liabilities 1,500.00 1,700.00 1,900.00 2,100.00 2,300.00
Total Current Liabilities 3,250.00 3,600.00 4,000.00 4,400.00 4,800.00
CREDIT TOTAL 2,91,950.00 2,82,500.00 2,70,100.00 2,56,600.00 2,46,000.00
Fixed Assets (As per Dep Statement) 2,68,633.00 2,41,633.00 2,17,633.00 1,95,633.00 1,75,633.00
Current Assets
Sundry Debtors 6,000.00 15,000.00 22,000.00 34,000.00 39,000.00
Cash and bank balances 17,317.00 25,867.00 30,467.00 26,967.00 31,367.00
Sub Total 23,317.00 40,867.00 52,467.00 60,967.00 70,367.00
DEBIT TOTAL 2,91,950.00 2,82,500.00 2,70,100.00 2,56,600.00 2,46,000.00
- - - - -
Cash Flow Statement
Year Year-1 Year-2 Year-3 Year-4 Year-5
Net Profit 1,76,800.00 2,06,300.00 2,19,300.00 2,48,800.00 2,91,000.00
Cash Flow from Operating Activities
Depreciation Expenses 30,000.00 27,000.00 24,000.00 22,000.00 20,000.00
Net (increase) Decrease in Stock - - - - -
Net (increase) Decrease in debtors (6,000.00) (9,000.00) (7,000.00) (12,000.00) (5,000.00)
Net (increase) Decrease in current assets - - - - -
Net increase (Decrease) in Creditors - - - - -
Net Cash Flow from Operating Activities 24,000.00 18,000.00 17,000.00 10,000.00 15,000.00
Cash Flow from Financing Activities
Net increase (Decrease) in Capital
Net increase (Decrease) in Capital (85,000.00) (1,75,000.00) (1,86,000.00) (2,11,000.00) (2,44,000.00)
Wokrin capital loan 1,750.00
Loan 1,96,900.00 (41,100.00) (46,100.00) (51,700.00) (58,000.00)
Wokrin capital loan 150.00 200.00 200.00 200.00
Net increase (Decrease) in Other Liabilites 1,500.00 200.00 200.00 200.00 200.00
Net Cash Flow from Financing Activities1,15,150.00 (2,15,750.00) (2,31,700.00) (2,62,300.00) (3,01,600.00)
Cash Flow from Investment Activities
Net (increase) Decrease in Fixed Assets (2,98,633.00)
Opening Cash Balance 17,317.00 25,867.00 30,467.00 26,967.00
Closing Cash Balance 17,317.00 25,867.00 30,467.00 26,967.00 31,367.00

19
 Auto Rickshaw
Depreciation Statement
% of
Particulars dep Year-1 Year-2 Year-3 Year-4 Year-5
RE Compact CNG 2,98,633.00 2,68,633.00 2,41,633.00 2,17,633.00 1,95,633.00
Depreciation 10% 30,000.00 27,000.00 24,000.00 22,000.00 20,000.00
WDV 2,68,633.00 2,41,633.00 2,17,633.00 1,95,633.00 1,75,633.00
WDV Opening 2,98,633.00 2,68,633.00 2,41,633.00 2,17,633.00 1,95,633.00
Depreication Rounded 30,000.00 27,000.00 24,000.00 22,000.00 20,000.00
WDV Rounded 2,68,633.00 2,41,633.00 2,17,633.00 1,95,633.00 1,75,633.00

Chart Title
350000

WDV Opening Depreication Rounded WDV Rounded

300000

250000

200000

150000

100000

50000

0
2 3 4 5 6

20
 Auto Rickshaw

Term Loan Repayment Summary

ABSTRACT (Yearly)
Opening Closing
Inst Interest principal
YEAR Balance Balance
1 2,33,633.00 61,658.39 24,974.18 36,684.21 1,96,948.79
2 1,96,948.79 61,658.39 20,525.88 41,132.51 1,55,816.29
3 1,55,816.29 61,658.39 15,538.18 46,120.21 1,09,696.08
4 1,09,696.08 61,658.39 9,945.67 51,712.71 57,983.36
5 57,983.36 61,658.39 3,675.02 57,983.36 0.00

Chart Title

- 10,000.00 20,000.00 30,000.00 40,000.00 50,000.00 60,000.00 70,000.00

principal Interest

Chart Title
70,000.00

60,000.00

50,000.00

40,000.00

30,000.00

20,000.00

10,000.00

-
1 2 3 4 5

Interest principal

21
 Auto Rickshaw

The gross profit margin (also known as gross profit rate, or gross profit ratio) is a profitability
measure that shows the percentage of gross profit in comparison to sales. In other words, it
calculates the ratio of profit left of sales after deducting cost of sales.Generally, the higher the
gross profit margin the better. A high gross profit margin means that the company did well
in managing its cost of sales. It also shows that the company has more to cover for operating,
financing, and other costs. The gross profit margin may be improved by increasing sales
price or decreasing cost of sales. However, such measures may have negative effects such as
decrease in sales volume due to increased prices, or lower product quality as a result of
cutting costs. Nonetheless, the gross profit margin should be relatively stable except when
there is significant change to the company’s business model.

Year-1 Year-2 Year-3 Year-4 Year-5

Revenue from operation 7,00,000.00 7,56,000.00 8,16,000.00 8,81,000.00 9,51,000.00
Gross Profit 2,37,000.00 2,59,000.00 2,68,000.00 2,93,000.00 3,20,000.00
GP Ratio 33.86 34.26 32.84 33.26 33.65
Average 33.57

Chart Title
10,00,000.00

9,00,000.00

8,00,000.00

7,00,000.00

6,00,000.00

5,00,000.00

4,00,000.00

3,00,000.00

2,00,000.00

1,00,000.00

-
Year-1 Year-2 Year-3 Year-4 Year-5

Revenue from operation Gross Profit GP Ratio

22
 Auto Rickshaw

Debt Service Coverage Ratio

The Debt Service Coverage Ratio (DSCR) measures the ability of a company to use
its operating income to repay all its debt obligations, including repayment of
principal and interest on both short-term and long-term debt. This ratio is often
used when a business has any borrowings on its balance sheet such as bonds, loans,
or lines of credit. It is also a commonly used ratio in a leveraged buyout
transaction, to evaluate the debt capacity of the target company. A debt service
coverage ratio of 1 or above indicates that a company is generating sufficient
operating income to cover its annual debt and interest payments. As a general rule
of thumb, an ideal ratio is 2 or higher. A ratio that high suggests that the company
is capable of taking on more debt.
Rather than just looking at an isolated number, it is better to consider a company’s
debt service coverage ratio relative to the ratio of other companies in the same
sector. If a business has a significantly higher DSCR than most of its competitors,
that indicates superior debt management. A financial analyst may also want to look
at a company’s ratio over time – to see whether it is trending upward (improving)
or downward (getting worse)

Ratio Analysis-DSCR
Financial Year Year-1 Year-2 Year-3 Year-4 Year-5
Net profit 1,76,800.00 2,06,300.00 2,19,300.00 2,48,800.00 2,91,000.00
Add: Depreciation 30,000.00 27,000.00 28,000.00 29,000.00 20,000.00
Total 2,06,800.00 2,33,300.00 2,47,300.00 2,77,800.00 3,11,000.00
Add: Interest on term Loan 25,000.00 20,500.00 15,500.00 9,900.00 3,700.00
Total 2,31,800.00 2,53,800.00 2,62,800.00 2,87,700.00 3,14,700.00
Annual Repayment 61,658.39 61,658.39 61,658.39 61,658.39 61,658.39
DSCR 3.76 4.12 4.26 4.67 5.10
Average DSCR 4.38

Chart Title

3,50,000.00

3,00,000.00

2,50,000.00

2,00,000.00

1,50,000.00

1,00,000.00

50,000.00

-
1 2 3 4 5
Net profit Annual Repayment

23
 Auto Rickshaw

Net profit ratio

Year Year-1 Year-2 Year-3 Year-4 Year-5

Profit 1,76,800.00 2,06,300.00 2,19,300.00 2,48,800.00 2,91,000.00

Sales 7,00,000.00 7,56,000.00 8,16,000.00 8,81,000.00 9,51,000.00
NP Ratio 25.26 27.29 26.88 28.24 30.60
Average 27.65

The average Net profitability ratio is 3,00,000.00

27.65 percent over the projected period 2,50,000.00
of 5 years. It is presumed that the same 2,00,000.00
level of profitability will be there in the 1,50,000.00 Profit
entity on a sustainable basis. 1,00,000.00
Sales
50,000.00
-

Net Profit Margin

Net profit ratio establishes a relationship between net profit and sales and
indicates and management’s in manufacturing, administrating and selling
the products. This ratio is the overall measure of the firm’s ability to turn
each rupee sales into net profit. If the net margin is inadequate the firm will
fail to achieve a satisfactory return on shareholders’ funds. This ratio also
indicates the firm’s capacity to withstand adverse economic conditions. A
firm with high net margin ratio would be an advantageous position to
survive in the face of falling prices, selling prices, cost of production. Net
profit is obtained when operating expenses; interest and taxes are subtracted
from the gross profit margin ratio is measured by dividing profit after tax by
sales: This is a ratio between the Net profit after tax and the turnover.

24
 Auto Rickshaw

Interest Coverage Ratio

The interest coverage ratio is a debt and profitability ratio used to determine how easily a company can pay
interest on its outstanding debt. The interest coverage ratio is calculated by dividing a company's earnings
before interest and taxes (EBIT) by its interest expense during a given period.

Year-1 Year-2 Year-3 Year-4 Year-5

Net profit 1,76,800.00 2,06,300.00 2,19,300.00 2,48,800.00 2,91,000.00

Depreciation 30,000.00 27,000.00 28,000.00 29,000.00 20,000.00

Interest 25,200.00 20,700.00 15,700.00 10,200.00 4,000.00
Total 55,200.00 47,700.00 43,700.00 39,200.00 24,000.00

EBIT 2,32,000.00 2,54,000.00 2,63,000.00 2,88,000.00 3,15,000.00

Interest 25,200.00 20,700.00 15,700.00 10,200.00 4,000.00

Interest coverage ratio 9.21 12.27 16.75 28.24 78.75

Chart Title

3,50,000.00

3,00,000.00

2,50,000.00

2,00,000.00

1,50,000.00

1,00,000.00

50,000.00

-
Year-1 Year-2 Year-3 Year-4 Year-5

EBIT Interest

25
 Auto Rickshaw
Total Outside Liability to Total Net Worth (TOL/TNW)

TOL/TNW is a measure of a company’s financial leverage calculated by dividing the total liabilities of
the company by the total net worth of the business. Total outside liability is the sum of all the liabilities of
the business and total net worth is the sum of share capital and surplus reserves of the company. This
ratio gives an accurate picture of the businesses reliance on debt. A low TOL/TNW ratio signifies good
levels of promoter’s stake in the business, whereas a high TOL/TNW ratio shows low levels of
promoter’s stake in the business, which is considered risky. In the rating exercise, businesses with a
TOL/TNW of less than 1 score the maximum amount of points while a TOL/TNW ratio of more than 3 is
awarded no points. For most businesses, it would be good to have an average TOL/TNW ratio in the
range of 1-2.

Year-1 Year-2 Year-3 Year-4 Year-5

Adj. TNW 91,800.00 1,23,100.00 1,56,400.00 1,94,200.00 2,41,200.00
TOL 3,250.00 3,600.00 4,000.00 4,400.00 4,800.00
TOL/TNW 0.04 0.03 0.03 0.02 0.02
Average 0.03

Chart Title

2,50,000.00

2,00,000.00

1,50,000.00

1,00,000.00

50,000.00

-
Year-1 Year-2 Year-3 Year-4 Year-5

Adj. TNW TOL

26
 Auto Rickshaw

Asset Coverage Ratio

Asset coverage ratio formula is calculated by subtracting the current liabilities less the short-term portion of long term
debt from the totals assets less intangibles and dividing the difference by the total debt

Year-1 Year-2 Year-3 Year-4 Year-5

Total Assets 2,91,950.00 2,82,500.00 2,70,100.00 2,56,600.00 2,46,000.00
Current Liabilites 1,500.00 1,700.00 1,900.00 2,100.00 2,300.00
Net Asset 2,90,450.00 2,80,800.00 2,68,200.00 2,54,500.00 2,43,700.00
Loan 1,98,650.00 1,57,700.00 1,11,800.00 60,300.00 2,500.00

Asset Coverage ratio 1.46 1.78 2.40 4.22 97.48

27
 Auto Rickshaw

Break Even Analysis

Year-1 Year-2 Year-3 Year-4 Year-5
Sale 7,00,000.00 7,56,000.00 8,16,000.00 8,81,000.00 9,51,000.00
Total 7,00,000.00 7,56,000.00 8,16,000.00 8,81,000.00 9,51,000.00
Variable Cost
Cost of Goods / services 4,06,000.00 4,38,000.00 4,73,000.00 5,11,000.00 5,52,000.00
Consumables 16,000.00 16,000.00 16,000.00 16,000.00 16,000.00
Electricity charges - - - - -
Repairs & Maintanance 18,000.00 19,000.00 20,000.00 21,000.00 22,000.00
Rates and taxes 21,000.00 22,000.00 23,000.00 24,000.00 25,000.00
Fitness works reparing charge - - 14,000.00 14,000.00 14,000.00
Other direct expenses 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
Total 4,63,000.00 4,97,000.00 5,48,000.00 5,88,000.00 6,31,000.00
Fixed Cost
Miscellaneous exp 200.00 200.00 200.00 300.00 300.00
Interest on term loan 25,000.00 20,500.00 15,500.00 9,900.00 3,700.00
Uniform and other expenses 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
- - - - - -
- - - - - -
Fuel cost - - - - -
- - - - - -
Depreciation 30,000.00 27,000.00 28,000.00 29,000.00 20,000.00
Total 60,200.00 52,700.00 48,700.00 44,200.00 29,000.00
Net Profit before tax 1,76,800.00 2,06,300.00 2,19,300.00 2,48,800.00 2,91,000.00
Contribuion 2,37,000.00 2,59,000.00 2,68,000.00 2,93,000.00 3,20,000.00
PV Ratio 33.86 34.26 32.84 33.26 33.65
Average PV Ratio 23.98
BEP in Rs 1,77,805.91 1,53,827.03 1,48,280.60 1,32,901.71 86,184.38
Average BEP in Rs 99,857.09
BEP in % 25% 20% 18% 15% 9%
Average BEP in % 18%
Breakeven point
Detailed break-even analysis is attached to the DPR. The breakeven chart is given below. The
average breakeven point calculation Schedule attached with this report details of the variable cost,
fixed cost, sales, and contribution. The breakeven chart is depicted below. The breakeven analysis
determines at which sales volume your firm will start making money. The Breakeven Formula is:
fixed costs (costs that must be paid whether or not any units are produced) divided by variable
costs (costs that vary directly with the number of products produced, e.g. materials, labor used to
produce units, percentage of overhead).

10,00,000.00
9,00,000.00
8,00,000.00
7,00,000.00
6,00,000.00 Sales
5,00,000.00 Variable cost
4,00,000.00 Fixed Cost
3,00,000.00 BEP
2,00,000.00
1,00,000.00
-
Year-1 Year-2 Year-3 Year-4 Year-5

28
 Auto Rickshaw

Current Assets Year-1 Year-2 Year-3 Year-4 Year-5

Other current assets and advances - - - - -
Sundry Debtors 6,000.00 15,000.00 22,000.00 34,000.00 39,000.00
Closing Stock - - - - -
Cash and bank balances 17,317.00 25,867.00 30,467.00 26,967.00 31,367.00
Total 23,317.00 40,867.00 52,467.00 60,967.00 70,367.00

Current Liabilities
Sundry Creditors - - - - -
Other Current Liabilities 1,500.00 1,700.00 1,900.00 2,100.00 2,300.00
Expenses Payable 1,750.00 1,900.00 2,100.00 2,300.00 2,500.00
Total 3,250.00 3,600.00 4,000.00 4,400.00 4,800.00

Year-1 Year-2 Year-3 Year-4 Year-5

Cash Ratio 5.33 7.19 7.62 6.13 6.53
Average cash ratio 6.56

The cash ratio indicates to creditors, Cash Ratio

8.00
analysts, and investors the percentage of a
company’s current liabilities that cash and 7.00

cash equivalents will cover. A ratio above 1 6.00

means that a company will be able to pay 5.00

off its current liabilities with cash and cash 4.00

equivalents, and have funds left 3.00

over.Creditors prefer a high cash ratio, as it 2.00

indicates that a company can easily pay off 1.00

its debt. Although there is no ideal figure, a -

Year-1 Year-2 Year-3 Year-4 Year-5
ratio of not lower than 0.5 to 1 is usually
preferred. The cash ratio figure provides
the most conservative insight into a
company’s liquidity since only cash and
cash equivalents are taken into

29
 Auto Rickshaw

Debt to equity ratio (also termed as debt equity ratio) is a long term solvency ratio that
indicates the soundness of long-term financial policies of a business It shows the relation
between the portion of assets financed by creditors and the portion of assets financed by
stockholders

Year-1 Year-2 Year-3 Year-4 Year-5

Year-1 Year-2 Year-3 Year-4 Year-5
Capital 91,800.00 1,23,100.00 1,56,400.00 1,94,200.00 2,41,200.00
Total Liabilities 3,250.00 3,600.00 4,000.00 4,400.00 4,800.00
Year-1 Year-2 Year-3 Year-4 Year-5
Debt Equity Ratio 0.04 0.03 0.03 0.02 0.02
Average DE ratio 0.03

The Debt quity ratio of the business varied from 0.04 to 0.02
with an average of 0.03

Debt Equity Ratio

0.04

0.035

0.03

0.025

0.02

0.015

0.01

0.005

0
Year-1 Year-2 Year-3 Year-4 Year-5

30
 Auto Rickshaw

This ratio shows the proportion of total assets

of a buisiness which are financed by
proprietors’ funds. The proprietary ratio is also
known as equity ratio. It helps to determine the
financial strength of a business & is useful for
creditors to assess the ratio of shareholders’
funds employed out of total assets of the
company.

Year-1 Year-2 Year-3 Year-4 Year-5

Capital 91,800.00 1,23,100.00 1,56,400.00 1,94,200.00 2,41,200.00
Total Assets 2,91,950.00 2,82,500.00 2,70,100.00 2,56,600.00 2,46,000.00
Year-1 Year-2 Year-3 Year-4 Year-5
Propritory Ratio 3.18 2.29 1.73 1.32 1.02
Average Proprietory ratio 1.91

The propritory ratio of the business varied from 3.18 to 1.02

with an average of 1.91

Propritory Ratio
3.5

2.5

1.5

0.5

0
Year-1 Year-2 Year-3 Year-4 Year-5

31
 Auto Rickshaw

Current Assets Year-1 Year-2 Year-3 Year-4 Year-5

Other current assets and advances - - - - -
Sundry Debtors 6,000.00 15,000.00 22,000.00 34,000.00 39,000.00
Closing Stock - - - - -
Cash and bank balances 17,317.00 25,867.00 30,467.00 26,967.00 31,367.00
Total 23,317.00 40,867.00 52,467.00 60,967.00 70,367.00
Quick assets (Current assets- cls stock) 23,317.00 40,867.00 52,467.00 60,967.00 70,367.00

Current Liabilities
Sundry Creditors - - - - -
Other Current Liabilities 1,500.00 1,700.00 1,900.00 2,100.00 2,300.00
Loan 1,750.00 1,900.00 2,100.00 2,300.00 2,500.00
Total 3,250.00 3,600.00 4,000.00 4,400.00 4,800.00

Year-1 Year-2 Year-3 Year-4 Year-5

Quick Ratio 7.17 11.35 13.12 13.86 14.66
Average quick ratio 12.03

The Quick Ratio of the business varied from 7.17 to 14.66

with an average of 12.03

Quick Ratio
16.00

14.00

12.00

10.00

8.00

6.00

4.00

2.00

-
Year-1 Year-2 Year-3 Year-4 Year-5

32
 Auto Rickshaw

In above table shown the current ratio of five years . . The solvency position
of the business in terms of current ratio was above the standard norm volume
of 2:1 for the entire period. Thecurrent Ratio showsutilization of idle funds in
the business

Year-1 Year-2 Year-3 Year-4 Year-5

Current liabilities 3,250.00 3,600.00 4,000.00 4,400.00 4,800.00
Curretn assets 23,317.00 40,867.00 52,467.00 60,967.00 70,367.00

Year-1 Year-2 Year-3 Year-4 Year-5

Current ratio 7.17 11.35 13.12 13.86 14.66
Average CR 12.03

The Current Ratio Varied from 7.17 to 14.66 with an Current

average ratio
of 12.03 during the study period
16.00

14.00

12.00

10.00

8.00

6.00

4.00

2.00

-
Year-1 Year-2 Year-3 Year-4 Year-5

33
 Auto Rickshaw
Current Ratio
Particulars Year-1 Year-2 Year-3 Year-4 Year-5
Current Ratio 7.17 11.35 13.12 13.86 14.66
Current Assets 23,317.00 40,867.00 52,467.00 60,967.00 70,367.00
Current Liabilites 3,250.00 3,600.00 4,000.00 4,400.00 4,800.00
Average Current ratio 12.03

Current Ratio:
The current ratio is calculated by dividing current assets by current liabilities.
Current assets include cash and other assets that can be converted into cash within a year, such as
marketable securities, debtors, and inventories. Prepaid expenses are also included in the current assets as
they represent the payments that will not be made by the firm in the future. All obligations maturing
within a year are included in the current liabilities. Current liabilities include creditors, bills payable,
accrued expenses, short-term bank loans, income tax, liability, and long-term debt maturing in the current
year.
The current ratio is a measure of a firm’s short-term solvency. It indicates the availability of current assets
in rupees for every one rupee of current liability. A ratio of greater than one means that the firm has more
current assets than current claims against them Current liabilities.

Current Ratio
16.00

14.00

12.00

10.00

8.00

6.00

4.00

2.00

-
Year-1 Year-2 Year-3 Year-4 Year-5

34
 Auto Rickshaw

Operating Expense Ratio (OER)

Particulars Year-1 Year-2 Year-3 Year-4 Year-5
Operating Expense Ratio 5,23,200.00 5,49,700.00 5,96,700.00 6,32,200.00 6,60,000.00
Sales 7,00,000.00 7,56,000.00 8,16,000.00 8,81,000.00 9,51,000.00
OER 74.74 72.71 73.13 71.76 69.40

Sales
10,00,000.00

5,00,000.00

-
Year-1 Year-2 Year-3 Year-4 Year-5

Sales

Operating Expense Ratio:

The operating expense ratio explains the changes in the profit margin (EBIT to
sales) ratio. This ratio is computed by dividing operating expenses viz., cost of
goods sold plus selling expense, and general and administrative expenses
(excluding interest) by sales.. Operating expenses are costs associated with
running a business's core operations on a daily basis. Thus, the lower a
company's operating expenses are, the more profitable it generally is. Over time,
changes in the OER indicate whether the company can increase sales without
increasing operating expenses proportionately (i.e. if the business is scalable). In
real estate, companies can compare properties by using the ratio.

35
 Auto Rickshaw

Loan rate Years Months

2,33,633.00 11.50% 5 60

Closing
Opening Balance Inst Interest principal
No Balance
1 2,33,633.00 5,138.20 2,238.98 2,899.22 2,30,733.78
2 2,30,733.78 5,138.20 2,211.20 2,927.00 2,27,806.78
3 2,27,806.78 5,138.20 2,183.15 2,955.05 2,24,851.73
4 2,24,851.73 5,138.20 2,154.83 2,983.37 2,21,868.36
5 2,21,868.36 5,138.20 2,126.24 3,011.96 2,18,856.40
6 2,18,856.40 5,138.20 2,097.37 3,040.82 2,15,815.58
7 2,15,815.58 5,138.20 2,068.23 3,069.97 2,12,745.61
8 2,12,745.61 5,138.20 2,038.81 3,099.39 2,09,646.23
9 2,09,646.23 5,138.20 2,009.11 3,129.09 2,06,517.14
10 2,06,517.14 5,138.20 1,979.12 3,159.08 2,03,358.06
11 2,03,358.06 5,138.20 1,948.85 3,189.35 2,00,168.71
12 2,00,168.71 5,138.20 1,918.28 3,219.92 1,96,948.79
13 1,96,948.79 5,138.20 1,887.43 3,250.77 1,93,698.02
14 1,93,698.02 5,138.20 1,856.27 3,281.93 1,90,416.09
15 1,90,416.09 5,138.20 1,824.82 3,313.38 1,87,102.72
16 1,87,102.72 5,138.20 1,793.07 3,345.13 1,83,757.59
17 1,83,757.59 5,138.20 1,761.01 3,377.19 1,80,380.40
18 1,80,380.40 5,138.20 1,728.65 3,409.55 1,76,970.84
19 1,76,970.84 5,138.20 1,695.97 3,442.23 1,73,528.62
20 1,73,528.62 5,138.20 1,662.98 3,475.22 1,70,053.40
21 1,70,053.40 5,138.20 1,629.68 3,508.52 1,66,544.88
22 1,66,544.88 5,138.20 1,596.06 3,542.14 1,63,002.74
23 1,63,002.74 5,138.20 1,562.11 3,576.09 1,59,426.65
24 1,59,426.65 5,138.20 1,527.84 3,610.36 1,55,816.29
25 1,55,816.29 5,138.20 1,493.24 3,644.96 1,52,171.33
26 1,52,171.33 5,138.20 1,458.31 3,679.89 1,48,491.44
27 1,48,491.44 5,138.20 1,423.04 3,715.16 1,44,776.28
28 1,44,776.28 5,138.20 1,387.44 3,750.76 1,41,025.52
29 1,41,025.52 5,138.20 1,351.49 3,786.70 1,37,238.82
30 1,37,238.82 5,138.20 1,315.21 3,822.99 1,33,415.82
31 1,33,415.82 5,138.20 1,278.57 3,859.63 1,29,556.19
32 1,29,556.19 5,138.20 1,241.58 3,896.62 1,25,659.57
33 1,25,659.57 5,138.20 1,204.24 3,933.96 1,21,725.61
34 1,21,725.61 5,138.20 1,166.54 3,971.66 1,17,753.95
35 1,17,753.95 5,138.20 1,128.48 4,009.72 1,13,744.23
36 1,13,744.23 5,138.20 1,090.05 4,048.15 1,09,696.08
37 1,09,696.08 5,138.20 1,051.25 4,086.94 1,05,609.13
38 1,05,609.13 5,138.20 1,012.09 4,126.11 1,01,483.02
39 1,01,483.02 5,138.20 972.55 4,165.65 97,317.37
40 97,317.37 5,138.20 932.62 4,205.57 93,111.79
41 93,111.79 5,138.20 892.32 4,245.88 88,865.92
42 88,865.92 5,138.20 851.63 4,286.57 84,579.35
43 84,579.35 5,138.20 810.55 4,327.65 80,251.70
44 80,251.70 5,138.20 769.08 4,369.12 75,882.58
45 75,882.58 5,138.20 727.21 4,410.99 71,471.59
46 71,471.59 5,138.20 684.94 4,453.26 67,018.33
47 67,018.33 5,138.20 642.26 4,495.94 62,522.39
48 62,522.39 5,138.20 599.17 4,539.03 57,983.36
49 57,983.36 5,138.20 555.67 4,582.52 53,400.84
50 53,400.84 5,138.20 511.76 4,626.44 48,774.40
51 48,774.40 5,138.20 467.42 4,670.78 44,103.62
52 44,103.62 5,138.20 422.66 4,715.54 39,388.08
53 39,388.08 5,138.20 377.47 4,760.73 34,627.35
54 34,627.35 5,138.20 331.85 4,806.35 29,821.00
55 29,821.00 5,138.20 285.78 4,852.41 24,968.58
56 24,968.58 5,138.20 239.28 4,898.92 20,069.67
57 20,069.67 5,138.20 192.33 4,945.86 15,123.80
58 15,123.80 5,138.20 144.94 4,993.26 10,130.54
59 10,130.54 5,138.20 97.08 5,041.11 5,089.43
60 5,089.43 5,138.20 48.77 5,089.43 0.00

36
 Auto Rickshaw
Calulation of NPV and IRR
Opportunity Cost 10%
Year Cash Flow Present Value
0 (2,98,633.00) (2,98,633.00)
1 2,06,800.00 1,88,000.00
2 2,33,300.00 1,92,809.92
3 2,47,300.00 1,85,800.15
4 2,77,800.00 1,89,741.14
5 3,11,000.00 1,93,106.53
Net Present Value 6,50,824.74
6,50,824.74
IRR 72.385726%
-
Chart Title
10,00,000.00

5,00,000.00

-
0 1 2 3 4 5
(5,00,000.00)

(10,00,000.00)

Cash Flow Present Value

Net Present Value (NPV)

Net present value (NPV) is the difference between the present value of cash
inflows and the present value of cash outflows over a period of time. NPV is used
in capital budgeting and investment planning to analyze the profitability of a
projected investment or project. A positive net present value indicates that the
projected earnings generated by a project or investment - in present dollars -
exceed the anticipated costs, also in present dollars. It is assumed that an
investment with a positive NPV will be profitable, and an investment with a
negative NPV will result in a net loss. This concept is the basis for the Net
Present Value Rule, which dictates that only investments with positive NPV
values should be considered.
Internal Rate of Return (IRR)
Internal rate of return (IRR) is the interest rate at which the net present value
of all the cash flows (both positive and negative) from a project or investment
equals zero. The internal rate of return is used to evaluate the attractiveness of a
project or investment. If the IRR of a new project exceeds a company’s required
rate of return, that project is desirable. If IRR falls below the required rate of
return, the project should be rejected. Typically, the higher the IRR, the higher the
rate of cash inflow a company can expect from a project or investment.

37
 Auto Rickshaw

Conclusion
On revealing the various aspects of the project and studying the financial & technical
features of the scheme it can easily be noted that the above project will be a great success. This
Project viewed from any angle will find a viable and justifiable outlook. There are no hidden
anomalies or expenses in the Project. The Term Loan proposed to avail and can be repaid with
interest from the income derived from the business itself. This Project is recommended for
implementation. Considering the fair quality of services and products offered by the
establishment and further the prior experience, knowledge, technical expertise, and
commitment of the promoters are added advantages for the smooth running of the project.
The income generated, with the experience, expertise, and commitment of the promoter
ensures the success of the project. Even the conservative estimates show that the project is
financially and economically viable and commercially sound. Considering the fair quality of
services and products offered by the establishment and further the prior experience,
knowledge, technical expertise, and commitment of the promoters are added advantages for
the smooth running of the project. The income generated, with the experience, expertise, and
commitment of the promoter ensures the success of the project. The various projected
financial statements and Debt Service Coverage Ratio DSCR, Return on Investment ROI, Pay
Back Period, etc. show that the project will be able to repay the entire Bank Loan together with
interest within the stipulated period and further shows that the project is financially sound
and deserve support and help from the Bank.
The various projected financial statements and Debt Service Coverage Ratio (DSCR),
Return on Investment (ROI), Pay Back Period, etc. show that the project will be able to repay
the entire Bank Loan together with interest within the stipulated period and further shows
that the project is financially sound and deserve support and help from the Bank.

38