Time

Activities
Purchase of Land
Company Registration
Approval & Sanction Loan
Planning & Construction of plant
Machine Ordering & Installation
Trial Runs & Training
SCHEDULE OF ACTIVITIES FOR THE INITIAL 2 MONTHS IN YEAR-1
10 Days
INTIAL GESTATION PERIOD : 2 MONTHS
10 Days
SCHEDULE OF ACTIVITIES FOR THE INITIAL 2 MONTHS IN YEAR-1
10 Days 10 Days 10 Days 10 Days
INTIAL GESTATION PERIOD : 2 MONTHS
Sr. No.
Particulars Quantity
Tonne
Rate Per
tonne
Consumpt
ion Per
Unit
Value of
Raw
material
1 Fly Ash 1,710 50 0.57 85,500
2
Stone
dust/Sand 660 2,000 0.22 1,320,000
3 Gypsum 150 300 0.05 45,000
4 Sludge Lime 480 2,200 0.16 1,056,000
Total 2,506,500
Raw material Requirement for Remaining years
Particulars
Quantity
Rate per
tonne Total Cost Quantity
Rate per
tonne Total Cost Quantity
Fly Ash 2,298 53.5 122,943 2,627 57 150,383 2,955
Stone
dust/Sand 887 2,140 1,898,180 1,014 2,290 2,321,857 1,140
Gypsum 202 321 64,842 230 343 78,998 259
Sludge Lime 645 2,354 1,518,330 737 2,519 1,856,341 829
Total 3,604,295 4,407,579
2nd Year 3rd Year 4th Year
Raw Materials For 1st year
Transportation
cost per tonne
Total cost
incurred in
1st year
Total cost
incurred in
2nd year
Total cost
incurred in
3rd year
Total cost
incurred in
4th year
Total cost
incurred in
5th year
50 85,500 122,943 150,383 181,000 215,167
100 66,000 94,909 116,093 139,655 166,078
800 120,000 172,912 210,662 253,829 302,007
300 144,000 207,045 253,137 304,668 362,566
Total 415,500 597,809 730,274 879,152 1,045,819
Rate per
tonne Total Cost Quantity
Rate per
tonne Total Cost
61 181,000 3,283 66 215,167
2,450 2,793,098 1,267 2,622 3,321,557
368 95,186 288 393 113,253
2,695 2,234,233 922 2,884 2,658,819
5,303,517 6,308,796
4th Year 5th Year
Transportation cost incurred
Notes
Sand
10/- per
cubic Ft.
Available
from Bina
From Wani, near nagpur
Sr. no. Particular Units
Unit
Price(Rs) Total Cost
1 Plant and Building
Land (sq.ft.) 15000 300,000
Civil work
Boundary
wall,Gate+Borewell
digging 125,000
total for civil
work
Civil work
Work shed + land
development(sq. ft.) 150,000 275,000
Total 575,000
2 Machinery
Fly ash Brick Machine 1 500,000 500,000
Pan Mixture 1 400,000 400,000
Conveyor 1 255,000 255,000
Hydraulic pallet truck 2 40,000 80,000
Borewell Motor 1 20,000 20,000
Total Of machinery 1,255,000
3
Office furniture and
fixtures 50,000
4 Electrification 25,000
5
Preliminary
expenses 100,000
6
Initial Working
capital expenditure 794,347
Total capital
Expenditure 2,799,347
Gross
Block
1,905,000
11.21%
Serial
Number
Labour Number Unit Cost
Total Cost (Per
Month)
Total Cost (Per
Annum Year 1)
Number
1 Plant supervisor 1 7,000 7,000 70000 1
2
Machine
operator 2 5,500 11,000 110,000 2
3 Helper(unskilled) 7 4,500 31,500 315,000 9
Sub Total 10 49,500 495,000
Total Cost (Per
Annum Year 2)
Number
Total Cost (Per
Annum Year 3)
Number
Total Cost (Per
Annum Year 4)
Number
Total Cost (Per
Annum Year 5)
92,400 2 203,280 2 223,608 2 245,969
145,200 3 239,580 3 263,538 3 289,892
534,600 10 653,400 12 862,488 14 1,106,860
772,200 1,096,260 1,349,634 1,642,720
Sr No
Machine
Name
Number of
machines
(HP)
connected
kW/Units
per hour
Total
working
hours per
day
Rate
per unit
for 1st
year
Cost per
day for 1st
year
Working
days per
year
1
Fly ash Brick
Machine 1 20 14.92 8 6.8 812 300
2 Pan Mixture 1 10 7.46 8 6.8 406 300
3 Conveyor 1 3 2.238 8 6.8 122 300
4
Borewell
motor 1 2 1.492 1 6.8 10 300
Total 26.11 1,349
Total cost
incurred in 1st
year
Rate per unit
for 2nd year
Total cost
incurred in
2nd year
Rate per unit
for 3rd year
Total cost
incurred in 3rd
year
Rate per unit
for 4th year
Total cost
incurred in 4th
year
202,912 7.3 260,539 7.8 278,777 8.3 298,291
101,456 7.3 130,270 7.8 139,388 8.3 149,146
30,437 7.3 39,081 7.8 41,817 8.3 44,744
2,536 7.3 3,257 7.8 3,485 8.3 3,729
337,341 433,146 463,466 495,909
Rate per unit
for 5th year
Total cost
incurred in 5th
year
9.1 325,674
9.1 162,837
9.1 48,851
9.1 4,071
541,433
Serial
Number Labour Units Unit Cost
Total Cost
(Per
Month)
Total Cost
(Per Annum
Year 1)
Total Cost
(Per Annum
Year 2)
1 Watchman 1 4,500 4,500 45,000 59,400
2 Salesman 1 7,000 7,000 70,000 184,800
3 Telephone expenses 500 5,000 6,600
4 Misc. electricity 1,500 15,000 19,800
5 Office supplies 25,000 5,500
6 Insurance 20,000 22,000
7 Maintenance cost 15,250 20,130
8 Director's salary 2 20,000 40,000 400,000 528,000
Total 595,250 846,230
Total Cost
(Per Annum
Year 3)
Total Cost
(Per Annum
Year 4)
Total Cost
(Per Annum
Year 5)
65,340 71,874 79,061
203,280 335,412 368,953
7,260 7,986 8,785
21,780 23,958 26,354
6,050 6,655 7,321
24,200 26,620 29,282
22,143 24,357 26,793
580,800 638,880 702,768
930,853 1,135,742 1,249,317
Depreciation as per companies act 1956
Particular Rate Cost 1st year(2014) 2nd year 3rd year 4th year
Plant 13.91% 300,000 34,775 36,893 31,761 27,343
Civil work 10.00% 300,000 25,000 27,500 24,750 22,275
Machinery 13.91% 1,255,000 145,475 154,335 132,867 114,385
Office
Furniture 18.10% 50,000 7,542 7,685 6,294 5,155
Depreciation 212,792 226,413 195,672 169,158
Depreciation according to IT act
Particular Rate Cost 1st year 2nd year 3rd year 4th year
Plant 13.91% 300,000 34,775 36,893 31,761 27,343
Civil work 10.00% 300,000 25,000 27,500 24,750 22,275
Machinery 15.00% 1,255,000 156,875 164,719 140,011 119,009
Office
Furniture 10.00% 50,000 4,167 4,583 4,125 3,713
Depreciation 220,817 233,695 200,647 172,340
5th year
23,540
20,048
98,474
4,222
146,283
5th year
23,540
20,048
101,158
3,341
148,086
Particulars Percentage Amount
Owner's
Capital 30% of FA 571,500
Term loan 70% of FA 1,333,500
Total 1,905,000
1st year 2nd year 3rd year 4th year 5th year
Particulars
Cash credit 595,761 526,150 0 0 0
Owner's
contribution 198,587 526,150 1,313,029 1,549,827 1,797,116
Total 794,347 1,052,299 1,313,029 1,549,827 1,797,116
Total capital
expenditure
generated 2,699,347
Fixed assests financing
Working capital financing
fixed assest financing 571,500
WC financing 198,587
Total 1,070,087
Total of Owner's Capital
Serial Number
Particulars Period(month)
Year 1
(62.5 %
Capacity)
1 Current Assets
Raw Material Stock 1 208,875
WIP 0.5 90,427
Finished Goods 0.5 163,920
Debtors 1 540,000
Total 1,003,222
2 Current Liabilities
Creditors 1 208,875
Total 208,875
Net Working Capital Requirement 794,347
permissible bank finance(maximum 75%) at 14% 595,761
Owner's contribution(25%) 198,587
Interest on working capital 14% 69,505
Year 2
(70% Capacity)
Year 3
(80% Capacity)
Year 4
(90%
Capacity)
Year 5
(100% Capacity)
300,358 367,298 441,960 525,733
130,261 161,615 193,620 212,619
256,758 315,062 378,721 446,013
665,280 836,352 977,486 1,138,484
1,352,657 1,680,327 1,991,787 2,322,849
300,358 367,298 441,960 525,733
300,358 367,298 441,960 525,733
1,052,299 1,313,029 1,549,827 1,797,116
526,150 - - -
526,150 1,313,029 1,549,827 1,797,116
73,661 - - -
Year 1 2 3 4
Rate 3.60 3.96 4.36 4.79
Capacity Utilization 62.50% 70% 80% 85%
Total Production 1,410,000 2,005,200 2,289,600 2,440,800
Revenue Generated 5,076,000 7,940,592 9,973,498 11,695,337
Estimated production 1,500,000 2,016,000 2,304,000 2,448,000
Per day production 6,000 6,720 7,680 8,160
Closing stock for the year 90,000 100,800 115,200 122,400
Total Production 1,410,000 2,005,200 2,289,600 2,440,800
5
5.27
90%
2,584,800
13,623,860
100% utilization
2,592,000 2,880,000
8,640
129,600
2,584,800
Particulars
Amount per year
1 (in Rs.)
Amount per year
2 (in Rs.)
Amount per
year 3 (in Rs.)
Opening Stock of Raw Materials 0 208,875 300,358
Add Purchase of Raw Material 2,506,500 3,604,295 4,407,579
Add Purchasing Expenses on Raw Material 415,500 597,809 730,274
Less Closing Stock of Raw Materials 208,875 300,358 367,298
RAW MATERIAL CONSUMED 2,713,125 4,110,621 5,070,913
Add Direct Wages 495,000 772,200 1,096,260
PRIME COST 3,208,125 4,882,821 6,167,173
Add Factory Overheads 337,341 433,146 463466.3279
Add opening WIP 0 90,427 130,261
Less Closing WIP 90,427 130,261 161,615
WORKS COST/Factory cost 3,455,039 5,276,133 6,599,286
Add Administration Overheads
COST OF PRODUCTION 3,455,039 5,276,133 6,599,286
Add Opening Stock of Finished Goods 0 163,920 256,758
Less Closing Stock of Finished Goods 163,920 256,758 315,062
COST OF GOODS SOLD 3,291,119 5,183,295 6,540,982
Add SGA 595,250 846,230 930,853
COST OF SALES 3,886,369 6,029,525 7,471,835
SALES 5,076,000 7,940,592 9,973,498
Unit Cost 2.76 3.01 3.26
SP 3.60 3.96 4.36
Per unit Value Addition 1.41 1.86 2.11
Per unit VAT(4%) (margin included in profit) 0.06 0.07 0.08
Cost Sheet
Amount per
year 4 (in Rs.)
Amount per
year 5 (in Rs.)
367,298 441,960
5,303,517 6,308,796
879,152 1,045,819
441,960 525,733
6,108,008 7,270,841
1,349,634 1,642,720
7,457,642 8,913,561
495,909 541,433
161,615 193,620
193,620 212,619
7,921,545 9,435,995
7,921,545 9,435,995
315,062 378,721
378,721 446,013
7,857,887 9,368,703
1,135,742 1,249,317
8,993,629 10,618,019
11,695,337 13,623,860
3.68 4.11
4.79 5.27
2.26 2.43
0.09 0.10
Term Loan Interest
1,333,500 13.50%
Year Interest Loan yet to be repaid Principal repayment
1 150,019 933,500 400,000
2 126,023 333,500 600,000
3 45,023 - 333,500
4 - - -
5 - - -
SR.NO PARTICULARS Year 1 Year 2
1 INCOME
Sales 5,076,000 7,940,592
VAT(4%) 79,637 149,540
NET SALES 4,996,363 7,791,052
2 EXPENDITURE
Raw Materials 2,506,500 3,604,295
Tranportation 415,500 597,809
Wages 495,000 772,200
Power 337,341 433,146
SGA 595,250 846,230
Total 4,349,591 6,253,680
3 PROFIT BEFORE INTEREST, DEP and TAX. 646,772 1,537,372
Depreciation 212,792 226,413
PROFIT BEFORE INTEREST and TAX. 433,980 1,310,960
4 less: Interest on term loan 150,019 126,023
less: Interest on WC 69,505 73,661
5 PROFIT BEFORE TAX 214,456 1,111,276
Tax(32.4%) 69,484 360,054
6 PROFIT AFTER TAX 144,972 751,223
7 DIVIDEND 0 40,000
8 DDT (@15%) 0 6,000
9 TRANSFER TO RESERVES AND SURPLUS 36,243 187,806
10 To Net Profit 108,729 517,417
PROJECTED PROFIT AND LOSS ACCOUNT
Year 3 Year 4 Year 5
9,973,498 11,695,337 13,623,860
193,426 220,507 250,770
9,780,072 11,474,831 13,373,091
4,407,579 5,303,517 6,308,796
730,274 879,152 1,045,819
1,096,260 1,349,634 1,642,720
463,466 495,909 541,433
930,853 1,135,742 1,249,317
7,628,433 9,163,955 10,788,084
2,151,639 2,310,876 2,585,007
195,672 169,158 146,283
1,955,967 2,141,718 2,438,724
45,023 0 0
0 0 0
1,910,945 2,141,718 2,438,724
619,146 693,917 790,147
1,291,799 1,447,801 1,648,577
200,000 200,000 400,000
30,000 30,000 60,000
322,950 361,950 412,144
738,849 855,851 776,433
Balance Sheet
SR. NO. PARTICULARS Year 1 Year 2
SOURCES OF FUNDS:
1 Owner's Capital
a) Capital 1,070,087 1,070,087
b) Net Profit(By P&L) 108,729 626,146
c) Reserves and Surplus 36,243 224,049
2 a) Term Loan from Bank 933,500 333,500
b) Cash Credit 595,761 526,150
c) Creditors 208,875 300,358
TOTAL 2,953,195 3,080,289
APPLICATION OF FUNDS:
1 FIXED ASSETS
a) Gross block 1,905,000 1,692,208
b) Depreciation 212,792 226,413
c) Net block 1,692,208 1,465,795
2 INVESTMENTS
3 CURRENT ASSETS
Inventories 463,222 687,377
Sundry debtors 540,000 665,280
Cash and bank balance 257,764 261,837
Loans & Advances
Total 1,260,987 1,614,494
TOTAL 2,953,195 3,080,289
Year 3 Year 4 Year 5
1,070,087 1,070,087 1,070,087
1,364,995 2,220,846 2,997,279
546,998 908,949 1,321,093
0 0 0
0 0 0
367,298 441,960 525,733
3,349,379 4,641,842 5,914,192
1,465,795 1,270,123 1,100,965
195,672 169,158 146,283
1,270,123 1,100,965 954,682
843,975 1,014,301 1,184,365
836,352 977,486 1,138,484
398,928 1,549,089 2,636,661
2,079,255 3,540,876 4,959,510
3,349,379 4,641,842 5,914,192
Year 1 Year 2 Year 3
Net profit before tax 214,456 1,111,276 1,910,945
add: Transfer to Reserve - - -
Adjustment for:
add: Depreciation 212,792 226,413 195,672
add: Preliminary Expenses 100,000 - -
add: Interest on Term Loan 150,019 126,023 45,023
add: Interest on Working Capital Loan 69,505 73,661 -
Operating profit before working capital
changes 746,772 1,537,372 2,151,639
Working capital changes:
Trade receivables(-) 540,000 125,280 171,072
Inventories(-) 463,222 224,155 156,598
Trade payables(+) 208,875 91,483 66,940
Cash generated from operating
activities: -47,575 1,279,420 1,890,910
Direct tax paid(-) 69,484 360,054 619,146
Net cash flow from operating activities -117,059 919,367 1,271,764
Cash flow from investing activities:
Purchase of fixed assets(-) 1,905,000 - -
Sale of fixed assets (+) - - -
Preliminary expenses (-) 100,000 - -
Net cash flow from investing activities -2,005,000 -
Cash flow from financing activites:
Term Loan 1,333,500 - -
Promoter's Funds 1,070,087 - -
Loan Repayment(-) 400,000 600,000 333,500
Interest on Term Loan(-) 150,019 126,023 45,023
Interest on Working Capital Loan(-) 69,505 73,661 -
Dividend paid (-) - 46,000 230,000
Net cash flow from financing activities 1,784,063 -845,683 -608,523
Total -337,996 73,683 663,241
PROJECTED CASH FLOW STATEMENT
Cash at beginning of the year (+) - 257,764 261,837
New Cash Credit (for WC) (+) 595,761 526,150 -
Previous Cash Credit (for WC) (-) 595,761 526,150
Total 257,764 261,837 398,928
Year 4 Year 5
2,141,718 2,438,724
- -
169,158 146,283
- -
- -
- -
2,310,876 2,585,007
141,134 160,998
170,326 170,064
74,662 83,773
2,074,077 2,337,718
693,917 790,147
1,380,161 1,547,572
- -
- -
- -
- -
- -
- -
0 -
- -
230,000 460,000
-230,000 -460,000
1,150,161 1,087,572
PROJECTED CASH FLOW STATEMENT
398,928 1549089
- -
- -
1,549,089 2,636,661
Total per unit Total per unit
R.M. 2,506,500 1.78 4,110,621 2.05
Labour 495,000 0.35 772,200 0.39
Electricity 337,341 0.24 433,146 0.22
Overheads 595,250 0.42 846,230 0.42
Total variable cost 3,934,091 2.79 6,162,197 3.07
S.P. 3.60 3.96
Contribution 1,141,909 0.81 1,778,395 0.89
Total Contribution
Fixed Cost
BEP (Period)
MARGINAL COSTING
Particulars
Year 1 Year 2
1,905,000
1 year 5 months 4 days
1141909 1778395
Total per unit Total per Unit Total per Unit
5,070,913 2.21 6,108,008 2.50 7,270,841 2.81
1,096,260 0.48 1,349,634 0.55 1,642,720 0.64
463,466 0.20 495,909 0.20 541,433 0.21
930,853 0.41 1,135,742 0.47 1,249,317 0.48
7,561,492 3.30 9,089,293 3.72 10,704,310 4.14
4.36 4.79 5.27
2,412,005 1.05 2,606,044 1.07 2,919,550 1.13
MARGINAL COSTING
Year 3 Year 4 Year 5
1,905,000
1 year 5 months 4 days
2412005 2606044 2,919,550
Particulars Cost Amount WACC Amount WACC
Equity 16% 1,070,087 1,070,087
Debt 9.13% 1,333,500 933500
Cash credit 9.46% 595,761 526,150
Year CFAT Depreciation CFAT + Dep. DF (1/(1+WACC))PVCF
0 -1,905,000 -1,905,000 1.00 -1,905,000
1 144,972 312,792 457,764 0.90 410,015
2 751,223 226,413 977,635 0.80 777,919
3 1,291,799 195,672 1,487,471 0.67 994,374
4 1,447,801 169,158 1,616,959 0.55 893,032
5 1,648,577 146,283 1,794,860 0.48 854,556
3,929,897
2,024,897
WACC Calculation
Year1 Year2
Profitability Index 2.06
NET PRESENT VALUE (NPV) CALCULATION (DISCOUNTED PAYBACK PERIOD)
Present value of cash inflows
NPV
12.10%
Discounted pay-back period 2 Year 8 months 20 days
11.65%
Amount WACC Amount WACC Amount WACC
1,070,087 1,070,087 1,070,087
333500 0 0
0 0 0
Year CFAT Depreciation CFAT + Dep. CF Cumulative CF
0 -1,905,000 - -1,905,000 -1,905,000 -1,905,000
1 144,972 312,792 457,764 457,764 457,764
2 751,223 226,413 977,635 977,635 1,435,400
3 1,291,799 195,672 1,487,471 1,487,471 2,922,870
4 1,447,801 169,158 1,616,959 1,616,959 4,539,829
5 1,648,577 146,283 1,794,860 1,794,860 6,334,690
6,334,690
4,429,690
Payback Period
WACC Calculation
year3 year4 year5
PAYBACK PERIOD CALCULATION
Present value of cash inflows
NPV
14.37% 16.00% 16.00%
1 year 11 months 27 days
Particulars Amount
Total equity (Rs.) 1,070,087
Face value of each share (Rs.) 1
Total shares 1,070,087
Number of promoters 4
Shares per promoter 267,522
SHAREHOLDING PATTERN
Year 1 Year 2 Year 3 Year 4
% of face value 0% 4% 19% 19%
Dividend per promoter - 10,000 50,000 50,000
Total dividend payout - 40,000 200,000 200,000
DIVIDEND PAYOUT
Year 5
37%
100,000
400,000
DIVIDEND PAYOUT
EQUITY AND LIABILITIES
Shareholders funds
Share capital 1,070,087
Reserves and surplus 36,243
By P&L Balance (Net Profit) 108,729
1,215,059
Non-current liabilities
Long-term borrowings 933,500
Other long-term liabilities -
Long-term provisions -
933,500
Current liabilities
Short-term borrowings 595,761
Trade payables 208,875
Other current liabilities -
Short-term provisions -
804,636
TOTAL 2,953,195
ASSETS
Non-current assets
Fixed assets
Tangible assets 1,692,208
Intangible assets -
Capital work-in-progress -
Intangible assets under development -
1,692,208
Non-current investments -
Long-term loans and advances -
Other non-current assets -
1,692,208
Current assets
Current investments -
Inventories 463,222
Trade receivables 540,000
Cash and bank balances 257,764
Loss (Current Year) -
By P&L Balance (Net Loss) -
1,260,987
Orient maufacturing Pvt. Ltd.
In Rs.
Years Year 1
TOTAL 2,953,195
1,070,087 1,070,087 1,070,087
224,049 546,998 908,949
626,146 1,364,995 2,220,846
1,920,282 2,982,080 4,199,882
333,500 - -
- - -
- - -
333,500 - -
526,150 - -
300,358 367,298 441,960
- - -
- - -
826,508 367,298 441,960
3,080,289 3,349,379 4,641,842
1,465,795 1,270,123 1,100,965
- - -
- - -
- - -
1,465,795 1,270,123 1,100,965
- - -
- - -
- - -
1,465,795 1,270,123 1,100,965
- - -
687,377 843,975 1,014,301
665,280 836,352 977,486
261,837 398,928 1,549,089
- -
- - -
1,614,494 2,079,255 3,540,876
Orient maufacturing Pvt. Ltd.
In Rs.
Year 2 Year 3 Year 4
3,080,289 3,349,379 4,641,842
1,070,087
1,321,093
2,997,279
5,388,459
-
-
-
-
-
525,733
-
-
525,733
5,914,192
954,682
-
-
-
954,682
-
-
-
954,682
-
1,184,365
1,138,484
2,636,661
-
-
4,959,510
Orient maufacturing Pvt. Ltd.
In Rs.
Year 5
5,914,192
Ratios Year 1 Year 2 Year 3 Year 4
Debt-equity 0.87 0.31 0.00 0.00
Interest coverage ratio 1.98 6.57 43.44 0.00
Current ratio 1.57 1.95 5.66 8.01
Quick ratio 0.99 1.12 3.38 5.72
Inventory turnover 8.10 7.87 7.94 7.92
Debtors turnover 9.40 11.94 11.93 11.96
Working capital turnover 6.29 7.40 7.45 7.40
Fixed assets turnover 2.95 5.32 7.70 10.42
Operating profit margin 24.86% 30.59% 31.52% 30.04%
EBIT margin 8.69% 16.83% 20.00% 18.66%
Net profit margin 2.90% 9.64% 13.21% 12.62%
Return on equity 13.55% 70.20% 120.72% 135.30%
Return on net worth 11.93% 39.12% 43.32% 34.47%
Return on investment 6.75% 33.33% 43.32% 34.47%
FUNDAMENTALS
Year 5
0.00
0.00
9.43
7.18
8.05 COP/Inventory
11.97 sales/receivables
7.44 Net Sales/Working capital requirement
14.01 Net Sales/ Net block Net Block= Tangible Assets
28.67% Operating Profit/Net Sales
18.24% EBIT/Net Sales
12.33% EAT/Net Sales
154.06% EAT/Share Capital
30.59% EAT/Share holder's funds
30.59% EAT/Sources of Funds
FUNDAMENTALS