M/s AMIR PROVISIONAL STORE NMDFC/Himayat

Jammu & Kashmir Entrepreneurship Development Institute (JKEDI)

Appraisal Note Dated: 18/04/2017

1. Reference EDI proposal bearing UID No :

2. Name of the Unit : M/s Amir Provisional Store
3. General information about the Borrower:

4. Name of the borrower Amir Hussain S/O Ghulam Rasool N

a
Qualification 10th pass t
u
Address Near Abu Bakar Masjid Kishtwar Ward No-7, Kishtwar r
e
Location of the unit Changer Marwah , Kishtwar

Nature of proposal Working capital & term loan requirement for establishment of General
Store

Activity General Store

Sector Small Sector Business

Priority Classification Priority sector

Sponsoring Agency J & K Entrepreneur Development Institute

Employment Potential 1

Registration No

of the Proposal: - The instant proposal is for financial assistance for setup of a General Store under the
name and style of M/s Amir Provisional Store. The unit is proposed to be established in rented
accommodation at Near Abu Bakar Masjid Kishtwar Ward No-7, Kishtwar where all other basic
infrastructure facilities are also available.
5. Projected Financials

The financials furnished by the concern are detailed as under:

(Amount in lacs)

Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Capacity
100% 100% 100% 100% 100% 100%
Utilization

Sales 1446700 1446700 1446700 1446700 1446700 1446700

COS 1351420 1348141 1343911 1339438 1334505 1329824

Net Profit 95280 98559 102789 107262 112195 116876

Sales Growth 0.00 0.00 0.00 0.00 0.00

Balance Sheet
Spread

Liabilities

Promoter's
20000 20000 20000 20000 20000 20000
Contribution
M/s AMIR PROVISIONAL STORE NMDFC/Himayat

Jammu & Kashmir Entrepreneurship Development Institute (JKEDI)

Reserves &
95280 193838 296627 403889 516084 632959
Surplus

Total Net worth 115280 213838 316627 423889 536084 652959

Term Liabilities

Term Loans 346887 277627 204118 126098 43290 0

Repayments 0 0 0 0 0 0

Total Term
346887 277627 204118 126098 43290 0
Liabilities
Current
Liabilities

Expenses payable

Provisions

Total Current
0 0 0 0 0 0
Liabilities

Total Liabilities 462167 491465 520745 549987 579374 652959

Fixed Assets 20000 18000 16200 14580 13122 11810

Gross block 0 0 0 0 0 0

Less Depreciation 2000 1800 1620 1458 1312 1181

Net Block 18000 16200 14580 13122 11810 10629

Current Assets 325000 325000 325000 325000 325000 325000

Current Assets

Cash 64167 95265 126165 156865 187564 262330

Preop Exp 55000 55000 55000 55000 55000 55000

Total Current
Assets

Other Non
Current assets

Intangible Assets

Total Assets 462167 491465 520745 549987 579374 652959

Difference 0 0 0 0 0 0

Financial
indicators

Current Assets 0 0 0 0 0 0

Current
0 0 0 0 0 0
Liabilities
M/s AMIR PROVISIONAL STORE NMDFC/Himayat

Jammu & Kashmir Entrepreneurship Development Institute (JKEDI)

NWC 0 0 0 0 0 0

Observations: The concern is envisaging sales to the extent of Rs. 14.46 lacs against purchases to the extent
of purchases of Rs 12.58 lacs during the first year of operations at the capacity utilization of 100% operation
during the first year, which has been accepted for assessment of working capital requirements.

 The current ratio is envisaged above the benchmark level.

 The applicant borrower fulfils the eligibility criteria for being financed under NMDFC term loan
scheme

6. Working Capital Requirements: 3.25Lac

7. Break-Even Point: 44%

8. Cost of project:

The total project cost for setting up of the proposed unit including the working capital has been
estimated at Rs 4.00 lacs. The break up is given as under. However, the necessary changes, which are
required to be appropriated, are detailed alongside:-

Revised/Accepted Project
Proposed Project Detail
Details
Amount Amount
Particulars Particulars
(in lacs) (in lacs)
(a)Capital Cost

Civil Works 0 Civil Works 0

Machinery/ Machinery/
0.00 0.00
Equipments Equipments
Misc fixed Misc fixed
20000.00 20000.00
Assets Assets
Preliminary
Preliminary &
& Pre
Pre Operative 55000.00 55000.00
Operative
expenses
expenses
Sub - Total 75000.00 Sub -Total 75000.00
(b)Gross Working Capital
Working Cap. Working Cap.
325000.00 225000.00
Requirement Requirement
Total st (a+b) 400000.00 Total 300000.00

9. Funding Pattern

NMDFC Finance: 90% of the total project cost. The loan includes both terms and working capital
facility.
 M/s AMIR PROVISIONAL STORE NMDFC/Himayat

Jammu & Kashmir Entrepreneurship Development Institute (JKEDI)

Borrower Contribution: 5% of the project cost.

State Contribution: 5% of the project cost.

10. Means of Finance: The means of finance are detailed as follows:

(Amt in lacs)

Particulars Amt

Promoters contribution (5%) 0.15

NMDFC Share (90%) 2.70

State Share (5%) 0.15

TOTAL 3.00

11. Phasing of Funds

S.No Installment Amount in Lacs Remarks

Misc Fixed Assets. Preliminary

1 Ist 2.00 and Preoperative expenses ,
W. C

2 2nd 1.00 Working Capital

Total 3.00

12.Compliance of lending norms:-

As laid down in term loan of NMDFC Scheme.

13.Recommendations of NMDFC Dept, CHQ.

The Project report furnished by the concern has been examined and found to be technically feasible and
economically viable subject to fulfillment of lending norms. The proposal is as such recommended for financing
under NMDFC Loan Scheme with total project cost of Rs.3.00 lacs to be funded as under:-

(Amt. in lacs)
 M/s AMIR PROVISIONAL STORE NMDFC/Himayat

Jammu & Kashmir Entrepreneurship Development Institute (JKEDI)

STATE Promoter’s
NMDFC SHARE Project
S.No. Particulars SHARE Contribution
(90%) Cost
(5%) (5%)

1 Capital Cost 0.04 0.68 0.04 0.75

Gross
2 Working 0.11 2.03 0.11 2.25
Capital
Total 0.15 2.70 0.15 3.00

Repayment Schedule:- As per scheme, the quarterly repayment chart is given here under

PRINCIPAL OUTSTANDING
YEAR QUATERLY PAYMENT INTEREST
PAYMENT PRINCIPAL
285,000.00
1 4,275.00 4,275.00 0.00 285,000.00
2 4,275.00 4,275.00 0.00 285,000.00
3 16,600.03 4,275.00 12,325.03 272,674.97
4 16,600.03 4,090.12 12,509.91 260,165.06
5 16,600.03 3,902.48 12,697.56 247,467.50
6 16,600.03 3,712.01 12,888.02 234,579.47
7 16,600.03 3,518.69 13,081.34 221,498.13
8 16,600.03 3,322.47 13,277.56 208,220.57
9 16,600.03 3,123.31 13,476.73 194,743.84
10 16,600.03 2,921.16 13,678.88 181,064.97
11 16,600.03 2,715.97 13,884.06 167,180.90
12 16,600.03 2,507.71 14,092.32 153,088.58
13 16,600.03 2,296.33 14,303.71 138,784.88
14 16,600.03 2,081.77 14,518.26 124,266.62
15 16,600.03 1,864.00 14,736.04 109,530.58
16 16,600.03 1,642.96 14,957.08 94,573.50
17 16,600.03 1,418.60 15,181.43 79,392.07
18 16,600.03 1,190.88 15,409.15 63,982.92
19 16,600.03 959.74 15,640.29 48,342.63
20 16,600.03 725.14 15,874.90 32,467.73
21 16,600.03 487.02 16,113.02 16,354.71
22 16,600.03 245.32 16,354.71 0.00

14. Security:-

As per NMDFC, following security to be obtained from the entrepreneur:-

M/s AMIR PROVISIONAL STORE NMDFC/Himayat

Jammu & Kashmir Entrepreneurship Development Institute (JKEDI)

a. Third party Guarantee of one government employee.

b. 20 PDCs
c. Hypothecation/Mortgage of assets created out of the JKEDI financing.

15. Term and Conditions:-

a. The promoter’s contribution to be obtained upfront by JKEDI.

b. All financing to be made in Phases as per the development of the project.
c. The plant and machinery to be procured from the authorized dealers and should be approved under the
quality control standards.
d. The cost of insurance of capital goods has been accommodated under the Preliminary and Preoperative
expenses, thus, the entrepreneur should obtained the insurance cover for all machinery.
e. The repayment shall start immediately after the completion of moratorium period of three months and
the interest during moratorium period has been capitalized in the loan itself. The repayment shall be
made on quarterly basis.
f. Necessary permissions from Industries & Commerce, PDD, Local bodies to obtained prior to disbursement
of facilities as may be applicable.
g. Rent deed duly executed in the court of law should be obtained if applicable.
h. Entrepreneur to confirm the availability of skilled/unskilled workforce for operating the proposed
activity/machinery.

16. Submitted for approval,

(Monika Salaria)
Office Associate Central, Jammu

I/C Himayat