project on sai honda

7/28/2019 Project on Sai Honda

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ABOUT THE PROJECT

Cost of the Project

( ALL IN RS. ' 00000 ' )

Sl. No. Total CostPromoter's

Margin*

Amount of

Term Loan

1 Civil Construction 0.00 0.00 0.00

2 Furniture & Fixtures 10.00 10.00 0.00

3 Work Shop Tools & Equipments 5.00 5.00 0.00

4 Security Deposit to Patel Motors 5.00 5.00 0.00

5 Margin Money for Working Capital 15.00 15.00 0.00

35.00 35.00 0.00

Source of Finance

Term Loan 0.00

Own Contribution 35.00 35.00

Details of Cash Credit Loan

Amount of Loan Rs. 45.00 Lakhs

Source of Loan SBI, Umerkote

Rate of Interest Charged 14.50% per annum

Mode of Repayment. Repayable on Demand

TOTAL

The proposed unit requires Block Capital of Furniture & Fixtures, Equipments, Misc.

Assets, Civil Construction, etc. Seeing on the provissions stated above the Block

Capital requirement of the unit are calculated as under:

Particulars


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BASIS & ASSUMPTIONS

On an average the unit will be working for 25 days a month, i.e, 300 days per yearThe purchase and sale price of vehicles as per the prevailing rate in the market

Purchae price is expected to increase by Rs. 1,900/- every year

Sale price is expected to increase by Rs. 2,000/- every year

Nos. of Motor Cycle sales are expected at 30 Nos.and Scooter at 20 Nos. per month

No. of vehicles sales are expected to increase by 8 vehicles per year

Sale of spares expected to be 5% of the Vehicle Sales

Expected profit margin on sale of spares is 15%

Lease Rent is Rs. 5,000/- for the lease period

Rate of Interest on CC is assumed to be 15%

Interest Free Security Deposit of Rs. 5,00,000/- is to be given to M/s. Patel Motors, Jeypore

Power & Fuel, Salary & Wages, Selling, Distribution and Administrative Expenses are

expected to increase by 10% every year


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PROJECTION OF PERFOMANCE AND PROFITABILITY

( ALL IN RS. ' 00000 ' )

1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR

REVENUE FROM SALE OF VEHICLES

VEHICLE SALES (In Nos. of units)Motor Cycle 270 360 366 372 378

Scooter 180 240 242 244 246

Total 450 600 608 616 624

AVERAGE SELLING PRICE PER VEHICLE

Motor Cycle 0.650 0.670 0.690 0.710 0.730

Scooter 0.600 0.620 0.640 0.660 0.680

SALES PER SEGMENT

Motor Cycle 175.50 241.20 252.54 264.12 275.94Scooter 108.00 148.80 154.88 161.04 167.28

283.50 390.00 407.42 425.16 443.22

REVENUE FROM SERVICING OF VEHICLES

Nos. of vehicles expected for servicing per month 360 360 360 360 360

Nos. of Months 9 12 12 12 12

Approximate Service Charges per vehicle (in Rs.) 150.00 155.00 160.00 165.00 170.00

Total 4.86 6.70 6.91 7.13 7.34

AVERAGE PURCHASE PRICE PER VEHICLEMotor Cycle 0.637 0.656 0.675 0.694 0.713

Scooter 0.587 0.606 0.625 0.644 0.663

PROFIT PER VEHICLE

Motor Cycle 0.013 0.014 0.015 0.016 0.017

Scooter 0.013 0.014 0.015 0.016 0.017

PURCHASE COST PER SEGMENT

Motor Cycle 171.99 236.16 247.05 258.168 269.514

Scooter 105.66 145.44 151.25 157.136 163.098277.65 381.6 398.3 415.304 432.612

Particulars


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PROJECTION OF PERFOMANCE AND PROFITABILITY

( ALL IN RS. ' 00000 ' )

1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR

2013-14

A

Revenue from Sale of Vehicles 283.50 390.00 407.42 425.16 443.22

Revenue from Servicing of Vehicles 4.86 6.70 6.91 7.13 7.34

Revenue from Sale of Spares, Lubricants, Accessories 14.18 19.50 20.37 21.26 22.16

302.54 416.20 434.70 453.55 472.73

B COST OF GOODS SOLD

Purchase of Vehicles 277.65 381.60 398.30 415.30 432.61

Opening Stock 0 58.21 59.35 60.52 61.70

Add: Purchase 335.86 382.74 399.47 416.48 433.81

Less: Closing Stock58.21 59.35 60.52 61.70 62.90

Cost of Spares 12.76 17.55 18.33 19.13 19.94

Electricity Charges 0.72 0.79 0.87 0.96 1.05

Salary & Wages 1.85 2.46 2.71 2.98 3.27

Lease Rent 0.60 0.60 0.60 0.60 0.60

Insurance of Stock & Workshop 0.20 0.20 0.20 0.20 0.20

Sub-total 293.77 403.20 421.01 439.17 457.69

GROSS PROFIT [ (A) - (B) ] 8.76 12.99 13.69 14.37 15.04

Selling, General & Administrative Expenses 1.03 1.13 1.25 1.37 1.51OPERATING PROFIT before Interest & Depreciation 7.73 11.86 12.45 13.00 13.53

INTEREST

Interest to SBI 5.06 5.06 5.06 5.06 5.06

Depreciation 1.50 1.35 1.22 1.09 0.98

OPERATING PROFIT after Interest & Depreciation 1.17 5.45 6.17 6.85 7.49

Before Tax

PROVISION FOR TAXES including Education Cess 0.00 0.82 0.93 1.03 1.12

NET PROFIT AFTER TAX 1.17 4.63 5.24 5.82 6.36

Add: Depreciation 1.50 1.35 1.22 1.09 0.98

CASH FLOW AFTER TAX (CFAT) 2.67 5.98 6.46 6.91 7.35

Particulars

Total Income

INCOME


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PROJECTED BA LANCE SHEETS

( ALL IN RS. ' 00000 ' )

LIABILITIES

Capital Account of Smt Namita Padhi

Opening Balance/Additions 35.00 35.17 37.98 41.30 45.10

Add: Income during the year 1.17 4.63 5.24 5.82 6.36

36.17 39.80 43.23 47.12 51.46

Less: Income Tax & Withdrawals 1.00 1.82 1.93 2.03 2.12

35.17 37.98 41.30 45.10 49.33SBI CC Loan 45.00 45.00 45.00 45.00 45.00

TOTAL 80.17 82.98 86.30 90.10 94.33

ASSETS

FIXED ASSETS

Gross Block (Op. Bal. + Additions) 15.00 13.50 12.15 10.94 9.84

Less: Depreciation 1.50 1.35 1.22 1.09 0.98

Net Block 13.50 12.15 10.94 9.84 8.86

Security Deposit 5.00 5.00 5.00 5.00 5.00

Current Assets

Closing Stock - Vehicles 48.21 49.15 50.12 51.10 52.10

Closing Stock - Spares, Access., etc 10.00 10.20 10.40 10.60 10.80

Sundry Debtors 1.00 2.00 3.00 4.00 5.00

Cash & Bank Balance 2.46 4.48 6.85 9.55 12.58

TOTAL 80.17 82.98 86.30 90.10 94.33

5TH YEARParticulars

1ST YEAR

2013-2014 2ND YEAR 3RD YEAR 4TH YEAR


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CASH FLOW STATEMENT

( ALL IN RS. ' 00000 ' )

A. SOURCES OF FUNDS

1 Cash Accurals 1.17 4.63 5.24 5.82 6.36

2 Depreciation 1.50 1.35 1.22 1.09 0.98

3 Increase in Capital 35.00 - - - -

4 Increase in cash Credit Loan 45.00 - - - -

TOTAL 82.67 5.98 6.46 6.91 7.35

B. DISPOSITION OF FUNDS1 Increase in Capital Expenditure 15.00 - - - -

2 Increase in Security Deposit 5.00 - - - -

3 Increase in Current Assets 59.21 2.14 2.17 2.18 2.20

4 Payment of Income Tax & Withdrawals 1.00 1.82 1.93 2.03 2.12

TOTAL 80.21 3.96 4.10 4.21 4.32

C. OPENING BALANCE - 2.46 4.48 6.85 9.55

D. SURPLUS (A - B) 2.46 2.02 2.36 2.71 3.02E. CLOSING BALANCE 2.46 4.48 6.85 9.55 12.58

4TH YEAR 5TH YEARSl.No.

Particulars 1ST YEAR 2ND YEAR 3RD YEAR


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FUNDS FLOW STATEMENT

( ALL IN RS. ' 00000 ' )

A. SOURCES OF FUNDS

1 Funds from Operations* 2.67 5.98 6.46 6.91 7.35

3 Increase in Capital 35.00 - - - -

4 Increase in cash Credit Loan 45.00 - - - -

TOTAL 82.67 5.98 6.46 6.91 7.35B. DISPOSITION OF FUNDS

1 Increase in Capital Expenditure 15.00 - - - -

2 Increase in Security Deposit 5.00 - - - -

3 Increase/Decrease in Working Capital 61.67 4.16 4.53 4.89 5.22

4 Payment of Income Tax & Withdrawals 1.00 1.82 1.93 2.03 2.12

TOTAL 82.67 5.98 6.46 6.91 7.35

5TH YEARSl.

No.Particulars 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR


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BREAK EVEN ANALYSIS

( ALL IN RS. ' 00000 ' )

A Gross Income 302.54 416.20 434.70 453.55 472.73

B Variable Expenses

Cost of Vehicles 277.65 381.60 398.30 415.30 432.61

Cost of Spares 12.76 17.55 18.33 19.13 19.94

Electricity Charges 0.72 0.79 0.87 0.96 1.05

Salary & Wages 1.85 2.46 2.71 2.98 3.27

Lease Rent 0.60 0.60 0.60 0.60 0.60Total Variable Cost 293.57 403.00 420.81 438.97 457.49

C Contribution 8.96 13.19 13.89 14.57 15.24

D Profit Volume Ratio (P/V) 3% 3% 3% 3% 3%

E Fixed & Semi-fixed Expenses

Interest on CC Loan 5.06 5.06 5.06 5.06 5.06

Depreciation 1.50 1.35 1.22 1.09 0.98

Selling, Distribution & Administrtive Exp. 1.03 1.13 1.25 1.37 1.51

Insurance 0.20 0.20 0.20 0.20 0.20Total Fixed Cost 7.79 7.75 7.72 7.73 7.75

F Operating Profit 1.17 5.45 6.17 6.85 7.49

G Break Even Sales 263.04 244.33 241.69 240.45 240.54

J Margin of Safety 39.49 171.87 193.01 213.10 232.18

K M / S in Ratio 13% 41% 44% 47% 49%

5TH YEARPARTICULARS 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR


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FINANCIAL RATIOS

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year

A PBDIT 1.17 5.45 6.17 6.85 7.49

B PBDIT/INTEREST 0.23 1.08 1.22 1.35 1.48

C CASH ACCRUALS 2.67 5.98 6.46 6.91 7.35

D CURRENT ASSETS 61.67 65.83 70.37 75.25 80.48

E CURRENT LIABILITIES

F CURRENT RATIO

G LIQUID SURPLUS 61.67 65.83 70.37 75.25 80.48

H TOTAL OUTSIDE LIABILITIES 45.00 45.00 45.00 45.00 45.00

I TANGIBLE NET WORTH 35.17 37.98 41.30 45.10 49.33

J TOL/TNW 1.28 1.18 1.09 1.00 0.91

K PBT/NET SALES 0.39% 1.31% 1.42% 1.51% 1.58%

L PAT/NET SALES 0.39% 1.11% 1.21% 1.28% 1.35%

M PAT/TNW 3.33% 12.19% 12.69% 12.91% 12.90%

N SALES/TNW 8.60 10.96 10.53 10.06 9.58

O NET PROFIT/CAPITAL 3.34% 13.17% 13.80% 14.09% 14.11%

P NET SALES/FIXED ASSETS 22.41 34.25 39.75 46.09 53.37

Q BANK BORROWING/NET SALES 0.15 0.11 0.10 0.10 0.10

R DEBT/EQUITY 1.28 1.18 1.09 1.00 0.91

S SALES/ (INVENTORY+SD) 5.11 6.78 6.84 6.90 6.96

T INVENTORY TURNOVER 5.20 7.01 7.18 7.35 7.52


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SALARY & WAGES

Finance & Accounts 1 3,000.00 36,000.00

Skilled Workman 2 4,000.00 96,000.00

Stores & Others 1 3,000.00 36,000.00

Watchman 1 2,500.00 30,000.00Unskilled Workman 2 2,000.00 48,000.00

246,000.00

ELECTRICAL EXPENSES

Nos. of Units consumed per month 1200

Electrical Charges per unit 5

Total Electrical Expenses per month 6000

or Say per annum 72000

AMOUNT

TOTAL PER ANNUM

DESIGNATION NO. SALARY


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SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

( ALL IN RS. ' 00000 ' )

0.78 0.86 0.94 1.04 1.14

0.25 0.28 0.30 0.33 0.37

1.03 1.13 1.25 1.37 1.51

*Administrative Expenses Per Month

Advertisement 1,000.00

Office & Misc. Expenses 500.00

News Papers & Periodicals 300.00

Postage & Telegram 200.00

Printing & Stationary 500.00

Telephone Charges 500.00

Travelling & Conveyance 1,500.00

Fuel Charges 2,000.00

6,500.00

Per Annum 78,000.00

3RD YEAR 4TH YEAR 5TH YEAR

Administrative Expenses*

(assumed to increase by 10%

every year)

Selling & General Expenses**

(assumed to increase by 10%

every year)

PARTICULARS 1ST YEAR 2ND YEAR


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AMOUNT AMOUNT

To Opening Stock - By Sales 30,253,500.00

To Purchases 34,861,750.00 By Closing Stock 5,821,000.00

TO GROSS PROFIT 1,212,750.00

36,074,500.00 36,074,500.00

To Staff Salaries 184,500.00 BY GROSS PROFIT 1,212,750.00

To Show Room Rent 60,000.00

To Electricity Charges 72,000.00

To Insurance 20,000.00

To Bank Interest 506,250.00

To Selling & general Expenses 103,000.00To Depreciation 150,000.00

TO NET PROFIT 117,000.00

1,212,750.00 1,212,750.00

-

AMOUNT AMOUNT

Opening Balance 3,500,000.00 - Furniture & Fixtures 1,000,000.00

Add: Net Profit 117,000.00 - Less: Depreciation 100,000.00 900,000.00

3,617,000.00 Tools & Equipments 500,000.00

Less: Income Tax & 100,000.00 Less: Depreciation 50,000.00 450,000.00

Withdrawals 3,517,000.00 Security Deposit 500,000.00

SBI, Umerkote, CC Account 4,500,000.00 Current Assets

Closing Stock - Vehicles 4,821,000.00

Closing Stock - Spares 1,000,000.00

Sundry Debtors 100,000.00 5,921,000.00

Cash & Bank balance 246,000.00

8,017,000.00 8,017,000.00

LIABILITIES ASSETS

M/s. SAI HONDA, UMERKOTE

PROJECTED TRADING, PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED ON 31.03.2014

PARTICULARS PARTICULARS

PROJECTED BALANCE SHEET AS ON 31.03.2014


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AMOUNT AMOUNT

To Opening Stock 5,821,000.00 By Sales 41,619,600.00



47,554,600.00 47,554,600.00






To Selling & general Expenses 113,300.00

To Depreciation 135,000.00To Provision for IT 81,727.00


1,704,600.00 1,704,600.00

-

AMOUNT AMOUNT

Opening Balance 3,517,000.00 - Furniture & Fixtures 900,000.00


3,980,123.00 Tools & Equipments 450,000.00Less: Income Tax & 181,727.00 Less: Depreciation 45,000.00 405,000.00





Sundry Debtors 200,000.00 6,135,000.00


8,298,396.00 8,298,396.00

LIABILITIES ASSETS






14/20

-


15/20

AMOUNT AMOUNT




49,522,300.00 49,522,300.00







To Depreciation 121,500.00

To Provision for IT 92,521.00


1,806,910.00 1,806,910.00

-

AMOUNT AMOUNT









Sundry Debtors 300,000.00 6,352,000.00


8,630,164.00 8,630,164.00

LIABILITIES ASSETS






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-


17/20

AMOUNT AMOUNT




51,524,600.00 51,524,600.00










1,910,980.00 1,910,980.00

-

AMOUNT AMOUNT









Sundry Debtors 400,000.00 6,570,000.00


9,009,521.00 9,009,521.00

LIABILITIES ASSETS






18/20

-


19/20

AMOUNT AMOUNT




53,562,500.00 53,562,500.00










2,016,810.00 2,016,810.00

-

AMOUNT AMOUNT



5,145,751.00 Tools & Equipments 328,050.00Less: Income Tax & 212,272.00 Less: Depreciation 32,805.00 295,245.00





Sundry Debtors 500,000.00 6,790,000.00

Cash & Bank balance 1,257,744.00

9,433,479.00 9,433,479.00

LIABILITIES ASSETS






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project on sai honda

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