Suraj Final

of 30 /30
A PROJECT REPORT ON PROJECTED FINANCIAL STATEMENT TO BE SUBMITTED TO BANK FOR LOAN PURPOSE PREPARED BY SURAJMAL CHANDAK (T.Y.B.B.A.) UNDER THE GUIDANCE OF MRS. MRUGAKSHI RAJHANS BRIHAN MAHARASTRA COLLEGE OF COMMERCE PUNE - 411 004 SUBMITTED TO UNIVERSITY OF PUNE FOR PARTIAL FULFILLMENT OF BACHELOR OF BUSINESS ADMINISTRATION

Embed Size (px)

Transcript of Suraj Final

A PROJECT REPORT ON PROJECTED FINANCIAL STATEMENT TO BE SUBMITTED TO BANK FOR LOAN PURPOSE

PREPARED BY SURAJMAL CHANDAK (T.Y.B.B.A.)

UNDER THE GUIDANCE OF MRS. MRUGAKSHI RAJHANS

BRIHAN MAHARASTRA COLLEGE OF COMMERCE PUNE - 411 004

SUBMITTED TO UNIVERSITY OF PUNE FOR PARTIAL FULFILLMENT OF BACHELOR OF BUSINESS ADMINISTRATION

UNIVERSITY OF PUNE (2009-2010)

CERTIFICATE

This is to certify that Mr. Surajmal Chandak is a bonafide Student of our Institute pursuing a course in Bachelor of Business Administration (BBA) under the University of Pune With Finance as Specialization.

The topic of the Project Titled Term Loan Proposal For Chandak Cement Pvt. Ltd. is submitted by him in partial fulfillment as per guidelines and requirement of University of Pune.

The Project Report has been found worthy of acceptance.

MRS. MRUGAKSHI RAJHANS BHARATI UPADHAYE (INTERNAL PROJECT GUIDE) CO-ORDINATOR)

MRS. (B.B.A.

ACKNOWLEDGEMENTI take this opportunity to acknowledge my debt to various people for the successful completion of this project work. It would be rather unrealistic to say that my efforts would be successfully carried out without the help of these various people, who have played a vital role in the conclusion of this work.

First and foremost I would like to express my deep gratitude to Mr. Pranay Bhandari (Accountant) for the consent co-operation and guidance and his support which helped me in completing my project.

I would like to express my sincere gratitude to our Subject Teacher and Project Head, Mrs. Mrugakshi Rajhans for her aid and guidance.

I remain extremely indebted to Brihan Maharashtra College of Commerce and the Coordinator of B.B.A. Department, Mrs. Bharati Upadhaye, for the opportunity and co-operation they gave me. Last but not the least I want to thank all my friends, parents, teachers and all the people who helped me directly or in any other way to make this Project a success. Any suggestion for the improvement would be like pathway for me to come out the mist of errors.

Surajmal Chandak (T.Y.B.B.A)

CONTENTSSr .No.1 2 3 4 5 6

PARTICULARS NOPROJECT REPORT HIGHLIGHTS COMPANY PROFILE DIRECTORS PROFILE OBJECTIVES OF REPORT ASSUMPTIONS FINANCIAL STATEMENT A)STATEMENT OF TOTAL PROJECT COST AND MEANS OF FINANCE B)PROJECTED PROFITABILITY STATEMENT C)PROJECTED BALANCESHEET D)CALCULATION OF BOOK DEPRECIATION E)CASH FLOW STATEMENT F)WORKING CAPITAL REQUIREMENT G)RATIO ANALYSIS H)INTREST REPAYMENT SCHEDULE DOCUMENTS REQUIRED CONCLUSION BIBLIOGRAPHY ANNEXURES LOAN APPLICATION FORM

PAGE01 02 03 10 11 13 14 15 16 17 18 - 18 19 20 21 23 24 26 27 30 19 20 22 23 25 26 29 31

7 8 9 10

32 32 33 33 34 34 35 - 35

PROJECT REPORT FOR CHANDAK CEMENT PVT. LTD. PROJECT REPORT HIGHLIGHTSName of the Unit : CHANDAK CEMENT PVT. LTD.

Constitution

: Private Limited Company

Directors

: 1) MR. SONU CHANDAK 2) MR. KAILASH CHANDAK 3) MR. SANKET RAVOORI

Location

: 69/1A/B, Galli NO - 3, Wanwarie Industrial Estate, Pune -411040

Nature of Business

: Manufacturing of Cement

Total Cost of Project

: Rs. 50.00 Lakhs

Bank Finance Required : Rs. 27.00 Lakhs as Term Loan Rs. 08.00 Lakhs as Working Capital Loan

Repayment Period months.

: Term loan is to be repaid within 84

Issued & Paid-up Share Capital : Rs. 15.00 Lakhs

Securities Offered

: Assets of the Company

COMPANY PROFILECHANDAK CEMENT PVT. LTD. 69/1A/B, Galli NO - 3, Wanwarie Industrial Estate, Pune - 411 040

PROPOSAL

FOR OF

FINANCE

RS.50.00 L A K H S

1. INTRODUCTION :

T hi s s cheme per ta ins to the techno econ omi c f ea si bi l i ty of the pr opos ed Smal l Sca l e Indus tr ia l Uni t at 69/ 1A/ B, Ga ll i N o. 3, Wa nwa ri e Industri al Es ta te, Pune -411 040 to be s et up f or the manuf a ctur ing of cement wi th M/ s. Cha ndak Cement Pv t. L td.

T he uni t wa s f or med by a ll abov e menti on ed dir ect or s hav ing ex peri ence of mor e tha n 10 y ea rs in t h e f i el d of Cement I ndus tri es , es peci al ly in Manuf actur ing of Cement. T hey ha ve gai ned a l ot of Pr a cti ca l and T echn i cal Kn owl edge in such busi ness , s o they ha ve deci ded to s et up a uni t of ma nufa cturi ng of cements at Wanwar i e, Pune.

2. BUSI NESS POTENT I AL :

T he dema nd f or cement, whi ch i s used in t h e cons tr ucti on s epa ra te Many wor k , has f or gone up cons i der ably . buil ding and the a cti v i ti es ar e Th e by al s o of G ov ernment and other fi na nci ng i ns ti tuti ons ha ve envi sa ged pr ogr a mmes sect or to hous e pr ovi ding a ss is ta nce under li bera l ter ms and c ondi ti ons . publi c under tak ings empl oy ees f or ba nk s pr ovi ding l oans cons tr ucti on

r es i denti al bui l di ngs. G ov ernment cons tr ucti on countr y . n u mber wi t h the of pr ogr a mme i ndus tr ia l ha ve as an f or al s o decla r ed acti vi ty of hou s e in the

Industri al

T her ef or e ther e is v er y good hope f or s etti ng u p a uni t manuf a ctur ing f or the cemen t . of

Hence i t i s pr opos ed to s et- up thi s I ndus tr ia l uni t equi pped neces s ar y ma chi nes ma nufa cturi ng Cement.

3. LOCAT I ON AND P LACE OF BUSINESS :

On the bas is of i nv es ti ga ti on, the c ompa ny ha s f ound a s ui ta bl e l oca ti on at Wanwar i e, Pune in indus tr ia l z one. T he pr emis es is al ready wel l cons tr ucted f r om bus iness poi nt of v i ew.

The compa ny .

pr omoter s

of

compa ny

ha ve

contr i bu t ed

t h er e own l and a nd bui l di ng f or car ry ing out the bus ines s of

4. I NFRAST RUCT URAL FACI LI T ES : Al l i nf ra structura l fa ci l i ti es to r un thi s uni t a re a va il able i n the pr opos ed si te. Al s o pr oper el ectr i ci ty s uppl y f or ca rr yi ng out the bus ines s of compa ny is goi ng to al l ot by t h e M. S. E. B. a uthor i ti es a nd the unit is goi ng to a rr an ge di es el engi ne f or the uni nter rupted power s uppl y. a meni ti es. T ra nspor t a lr ea dy av ai la bl e in a nd the c ommuni ca ti on si te. Hence fa cil i ti es a re Wa ter is a va il able in the si te f or the us e of work er s and f or ot h er

al l infr as tr uctu ra l

f aci li ti es a re a va il able f or the i mpl ementa ti on of pr oj ect.

5. MANAGEMENT : T he c ompa ny ha s wor k ed in a s imi la r ty pe of u nder ta ki ng f or mor e tha n 10 y ea rs i n whi ch i t ha s achi ev ed a cons i der abl e ex peri ence in this f i el d, whi ch is of us e t o t h em in ma na gi ng the day to da y af fa irs of their v ent ur e. T hey ca n ther ef or e manage their own busi nes s v er y s u ccess ful ly and eff i ci entl y.

6. MACHI NERY : T he ma in ma chi nes requi r ed f or the uni t a re

Polysius Rotary Kilns, T ubul ar Cool er , Polytrack Clinker Cooler, SEPOL

high efficiency separator, etc. h ead incl udi ng

M/s Sa dhana Indus tr i es , Pun e i s and er ecti on cha rges is

a gr eed to supply the sa me f or this uni t. The c os t under th i s el ectr i f i ca ti on es ti ma ted at Rs .3075000. 00

7. SKI LLED LABOUR : Pune, being a la rge i ndus tri al ci ty , i s ha vi ng a va il abil ity of number of work er s in dif f er ent f i el ds. L abour s r equir ed f or the c ompa ny s busi nes s a re v er y mu ch a va il able i n Pune & nea rby a reas . The compa ny has al s o r eta ined sk il led la bour , whi ch a ls o ha ve got suff i ci en t k n owl edge rega rding the compa ny s busi nes s , f or i ts f as t gr owth a nd dev el opment.

8. MARKET P OT ENTI AL : As is il lus tr ated a bov e, the pr oduct of thi s u ni t wi ll enj oy v ery good mar ket in this l oca l i ty and outsi de. Hence on the commer ci a l gr ound, by tak ing i nto a ccount t h e v ar i ous a spects of this industry , i t wi ll be a fa v oura bl e s it ua ti on to s ta rtup the bus iness . Hence mar keti ng of th es e pr oducts wi l l nev er be a pr obl em f or the nex t s ev er al y ea rs t o come, mor e ov er , ther e i s a good gr owi ng dema nd f or t h es e pr oducts .

9. DET AI LS OF FUNDS REQUI REMENT :

T ERM LOAN:

1) The

company s busi nes s ma inl y depends on th e ma chi ner i es. T hey r equir e f oll owi ng ma chi ner i es to be pur cha sed whi ch a re v er y gr owthful f or the bus iness of compa ny. T he quota ti on a mounts of the ma chineri es ar e as f oll ows :

DET AI LS OF MACHI NARY & EQUI P MENT S No. 1 2 3 4 5 6 7 8 9 10 P a r t i c ul a r s Polysius Rotary Kilns Tubula r Cool er Polytrack Clinker Cooler Two-compartment separator mill SEPOL high efficiency separator Polysius preheater and calciner systems Ha mmer Mil l Crusher Rol l er Mi ll Other Machi neri es El ectr if i ca ti on a nd Er ecti on Char ges G RAN D T OT AL A m o un t (R s . ) 550000.00 500000.00 250000.00 125000.00 525000.00 450000.00 130000.00 115000.00 340000.00 90000. 00 3075000.00

Polysius Rotary Kilns

Tubular Cooler

Two-compartment separator mill

SEPOL high efficiency separator

2) The uni t whi ch is bei ng s et up ha s to be furnis hed, s o wor k shop is to di vi ded into v ar i ous par ts i. e. s tor es , of i i ce, res t r oom, adminis tra ti on, etc. On the bas is of a rchi tect, the cos t of f ur ni tur e & fi xtur es i s es ti ma t ed a r ound Rs .565000. 00

WORKI I NG CAP IT AL : I ni tia ll y the compa ny requi r es r aw ma ter ia l s u ch a s li mes tone, cl ay , s and, i r on, etc. f or the ma nufa cturi ng of cement. It wil l c os t ar ound Rs. 1100000. 00 incl udi ng ot h er wor ki ng ca pi tal requi r ement.

1 0. PROFI T ABI LTY : As inf or med by the dir ector s of compa ny , the n et pr ofi t mar gin of compa ny wi ll be a round 2. 36%. They ar e qui et conf i dent a bout a chi ev ing a n i ncr ement in gr owt h of t ur nov er of ev ery y ear . I t i s a ss umed tha t ther e wi ll be s ame depr ecia ti on r ates a s appl i ca bl e at pres ent f or t h e n ex t s ev en y ea rs .

11 . REP AY MENT SCHEDULE: As env is aged by the company , the l oan wi ll be r epa id i n s ev en y ear s & inter es t wil l be pa id on mon t h l y bas is (a s per EMI Sta tement) @ 11. 50% p. a.

1 2. AVAI LABI LT Y OF SUPP LI ERS: T he ma in ra w ma ter ia ls r equir ed a re l i mes ton e, cl ay , s and, i r on, etc. Thes e a ll a re a va il able i n r ea s on abl e pri ce a t r equir ed qua nti ty a nd wi thout dif fi cul ty.

1) DI RECT OR S P ROFI LE

N AME OF DIRECTOR

: MR. SONU CHANDAK

STAT US

: DI RECT OR

DATE OF BIRTH

: 30. 05. 1975

QUAL I FI CAT ION

: B. E. -MECH. FROM UN I VERSI T Y OF PUN E

L OCAL ADDRESS

: 51, NARAYAN PET H, PUN E 411 030

N AT URE OF BUSIN ESS CEMENT

:

MAN UFACT URIN G

OF

OWNERSHI P

: 1/ 3 SHARE HOLDIN G

2) DI RECT OR S P ROFI LE

N AME OF DIRECTOR

: MR. KAILASH CHANDAK

STAT US

: DI RECT OR

DATE OF BIRTH

: 21. 08. 1980

QUAL I FI CAT ION

: B. E. -CI VI L FROM UN I VERSI T Y OF PUN E

L OCAL ADDRESS

: 51, NARAYAN PET H, PUN E 411 030

N AT URE OF BUSIN ESS CEMENT

:

MAN UFACT URIN G

OF

OWNERSHI P

: 1/ 3 SHARE HOLDIN G

3) DI RECT OR S P ROFI LE

N AME OF DIRECTOR

: MR. SANKET RAVOORI

STAT US

: DI RECT OR

DATE OF BIRTH

: 10. 04. 1982

QUAL I FI CAT ION MUMBAI

: MBA- FIN AN CE FROM UN I VERSI T Y OF

L OCAL ADDRESS

: 21/ 2, MARKET YARD, PUN E 411 037

N AT URE OF BUSIN ESS CEMENT

:

MAN UFACT URIN G

OF

OWNERSHI P

: 1/ 3 SHARE HOLDIN G

OBJECTIVES OF PROJECT

1. T o s tudy the need to ra is e fi na nce thr ough Bank.

2. T o study the di ff er ent means of fi na nce a va il able t o peopl e a ccor di ng to thei r needs .

3. T o s tudy and unders tand the con cept and ca l cula ti on of EMI ( Equa ted Monthl y I ns ta l ments )

4. T o f or ecas t expected gr owth i n turnov er due to i ncr eas e i n dema nd of the pr oduct.

5. T o cal cul a te and s tudy the i mpor ta nce of dif fer ent ra ti os s u ch a s Curr ent Ra ti o, N et pr of i t Ra ti o, Debt Serv i ce Cov er age Ra ti o etc. , and their appl i ca ti ons f or the s anct i on of l oan.

6. T o s tudy v ar i ous r equir ement needed f or tak ing a T er m L oan fr om Bank.

7. T o l ear n the expect ed ef f ect on the a ctiv i ty and fi na n ci al pos i ti on of the bus ines s ca us ed by a cceptance a nd r epa y ment of l oan.

8. T o unders ta nd the eff ects of i nf l ows and outf l ows of cas h on bus iness thr ough Ca sh Fl ow Sta tement.

9. T o under stand the us e of Work ing Capi ta l Requi r ement f or s ancti oning of Wor ki ng Ca pi tal L oa n.

10. To under s ta nd the work ing a nd ca l cula ti on depr eci a ti on on Fi x ed Ass et at dif f er ent r ates

of

GENERAL ASSUMPTIONS

1. I nter es t Rate i s cons i der ed @ 11. 5% p.a . on T er m L oa n a nd al s o on Wor ki ng Ca pi tal L oa n

2. Ter m L oan is compl etel y r epai d a t the end of sev en th y ear s.

3. The a mount of work ing ca pi ta l l oan wi l l r ema i n the s ame a nd inter es t on sa me wi l l be pa id @ 11. 5% ev ery y ea r.

4. I ncome Ta x r ate i s cons i der ed @ 33. 99%, i. e. , Pr ev ai l in g I n come T ax Rate For Compa ni es .

5. Depr eci a ti on r ates a re cons i der ed a s per Income T ax Act , 1961 whi ch a re a s f ol l ows : Fi x ed Ass ets Ma chi ner y Furni tur e Fi x tur es Computer a nd Dep. r ate 15% 10% 60%

6. Depr eci a ti on on Fix ed Ass ets i n cal cul a ted on Wr i t t en Down Va lue Method ( W. D. V) as per I ncome T ax Act, 1961.

7. For pr oj ecti ons curr ent ma rk et c ondi ti on ar e cons i der ed.

8. I t i s as sumed that the a mount of ter m l oan s acti oned by t h e bank wi l l not be mor e 75% of Fix ed Ass ets ( other th an Computer ) .

9. I t i s a ss umed that work ing ca pi ta l l oan sa ncti oned wil l n ot be mor e tha n 75%of work i ng capi ta l r equir ement.

10. I t is as sumed tha t no div i dend wi ll be r ecei v ed on i nv es tments made in shar es .

FINANCI AL ST AT EMENT S

A) ST AT EMENT OF T OT AL PROJ ECT COST AN D MEAN S OF F IN AN CE.

B) PROJ ECT ED PROFIT ABI LI T Y STATEMEN T.

C) PROJ ECT ED BAL AN CESHEET

D) CAL CUL AT ION OF BOOK DEPRECI AT ION

E) CASH FL OW STATEMEN T

F ) WORKI NG CAPIT AL REQUI REMENT

G ) RAT IO AN AL YSIS

H) IN TREST REPAYMENT SCHEDUL E

DOCUMENT S REQUI RED

1. L is t of Dir ector s a nd a ls o l is t of Sha rehol der s wi th deta i ls of Shar ehol di ng.

2. Or iginal bil ls in r es pect of pur cha s es of Fi x ed Ass et s a s t h ey a re of f er ed a s secur i ty agai ns t ter m l oa n.

3. Or iginal bil l s/ v ouchers i n r es pect of ex pens es an d pur chas es and a ls o or igi na l bil ls /i nv oi ces i n r espect of s al es .

4. Copy of Memor andum of Ass oci a ti on a nd Ar ti cl es of Ass oci a ti on of the company and al s o Copy of Cer tif i ca t e of I n cor pora ti on.

5. Pur chas e agreement f or owner shi p and poss ess i on of manuf a ctur ing uni t.

6. Copy of Boar d Res ol uti on pas sed.

7. Bi o- data of a ll the Di rect or s wi th their deta il ed resume.

8. Mi ni mum 2 G ua rantor s and thei r I .T . retur ns .

CONCLUSIONL ook i ng a t the pr oj ecti ons it ca n be reas ona bl y sa id t ha t the pr oj ect is vi si bl e. The f igur es a re r ea li sti c & ca n be a chi ev ed. T he ex per i ence & ca pa bi l i ty of the c ompa ny wi l l r ea s ona bl y r es ul t in a chi ev ing the pr oj ecti ons & can r un t h e bus iness v er y s uccess ful ly . T he a mount of fi na nce is a bs olutel y sa fe & s ecur ed.

And al s o debt s er v i ce cov er age r ati o is a ls o s atis fa ctor y i n al l the y ear s whi ch s hows abil i ty of compa ny t o repay the l oa n.

As the fi gur es in the pr oj ect ar e a chi ev abl e &t h e compa ny ca n r epa y the ter m l oa n , the pr opos al ca n be f in anced.

T hr ough this pr oj ect I got to know what a re t h e ess entia ls of to get ter m l oan. I got the oppor tuni ty t o u nders tand the pra cti cal use of the f inancia l s ta tement an d pr oj ect repor t and a ls o us e of ra ti o a na ly si s.

I hope this Pr oj ect Repor t wi ll hel p me in my Futur e educa ti ona l a s wel l a s pr of ess i ona l l if e.

BIBLIOGRAPHYBOOKS: 1. PRI NCI PL ES OF FI N ACI AL MAN AG EMEN T SAT ISH IN AMDAR 2. ST UDEN T S G UI DE T O I NCOMETAX DR. VIN OD K. SI NG HANI A

P ERSONAL REFRENCES: 1. MR.PRAN AY BHANDARI 2. MR. SHI VKUMAR YERAWAR 3. MR. PRAMOD MURHKYA

I NT ERNET : WWW. GOOG LE. CO.I N