INTRODUCTION

Name of Unit : ANAND DECORATIONS

Address of the unit : At:- Dari Tala, Sanahatu,Ranchi

Sanahatu

Ranchi- 835204 (Jharkhand)

Constitution : Proprietorship

Name of the Proprietor : Mr. Anand Kumar Das

Age : 32 Years

Experience : More than 5 years

Residential Address : Dari Tala ,Sanahatu,Ranchi

Sanahatu

Ranchi- 835204(Jharkhand)

Location of unit : Rural

Proposed activity : Decoration and Catering Services

Category of the Proprietor : General

Electric Power Required : Yes.

Contact Number : 9308060063

 GENERAL INFORMATION & BUSINESS BACKGROUND

1. BACKGROUND OF PROMOTER:-

The Promoter of the proposed unit Mr. Anand Kumar Das is a hardworking,
energetic entrepreneur and belongs to a well reputed family. Regarding
Educational Qualification he is literate . He is highly experienced and successful
entrepreneur. He is well known about the demand of Tent/Decoration Services
Business as well as availability in the field where, he would like to setup the
Store for Tent/Decoration Services. Further, the promoter also able to invest a
moderate amount in the Store as proposed by him. He has gathered sufficient
knowledge in the line of proposed activity. He is quite capable of running this
project at the best.

2. SERVICES & MARKETABILITY:-

Party organizers and event planners are always in need of tents to rent for outdoor
parties and corporate events. Tent renting business is one simple business you can
start and make passive income from all year round, because parties and corporate
events are held almost all year round. So, if you are looking for a good business to start
as an entrepreneur, then you can consider starting your own tent rental business and
make good returns from the business.
The truth is that tent rental business is easy to start. A tent rental business is one
business that doesn’t need a special qualification to start; the basic things you need are;
capital, basic accounting or bookkeeping skill, advertisement plans and determination to
successful run this type of business
3. LOCATION & INFRASTRUCTURE:-
The Store is proposed to be established at Dari Tala Sanahatu Ranchi-835204
Jharkhand which is well connected to national highway as well as
railways. Adequate road and rail transport facility is available to and from
proposed location.

4. TECHNICAL KNOWHOW:-

The knowledge of the Sales job is essential for the success of the unit, promoter
is well aware about the job, and confident to successfully run the Store without
any interruption.

5. FINANCIAL ASPECTS:-

On the basis of projected profitability, financial position, cash flow statement

and different ratios such as liquidity ratio, activity ratio and solvency ratio, it
may be considered that the unit will run without facing any difficulties.
Therefore this project is technically feasible and economically viable.

6. NUMBER OF WORKING DAYS:-

The proposed project will run 25 days in a month on an average basis, i-e
300days in a year
7. TOTAL COST OF THE PROJECT:-

Fixed Asset: Rs.

Cost of Office (Rent) : 2000.00

Decoration and
Furniture : 20,000.00

Chair /Table : 38,000.00

Tent /Bamboo : 20,000.00

Lighting Item 10,000.00

Crockery Item : 20,000.00

Mini Generation : 30,000.00

TOTAL 1,40,000.00

Working Capital Required 3,60,000.00

TOTAL COST OF PROJECT 5,00,000.00

8. SOURCES TO MEET THE COST OF PROJECT:

Own Contribution (10% of Cost of Project) : 50,000.00

Loan Amount : 4,50,000.00

TOTAL 5,00,000.00
 9. FINANCIAL ARRANGEMENTS:

Purpose of Amount Own Bank Type Of

Finance Required Contribution Finance Loan
(a) (b) (c ) (b – c)
For Working 3,60,000.00 36,000.00 3,24,000.00 Cash
Capital credit
For Term Loan 1,40,000.00 14,000.00 1,26,000.00 Term
Loan
Total (in Rs.) 5,00,000.00 50,000.00 4,50,000.00

10. YEARLY CAPACITY UTILISATION:

Year Capacity Utilized

st
1 Year 60%
nd
2 Year 70%
rd
3 Year 75%
th
4 Year 80%
th
5 Year 85%

11. EMPLOYEES STRENGTH AND SALARY THEREOF PER MONTH:

Sl.No. Designation No. of employee Salary Per Salary P.M. Total Salary
day per per P.M
Employee Employee (Rs.)
(Rs.) (Rs.)
1. Manager Himself - - -
2. Skilled workers 2 300 7,500 15,000.00
3. Unskilled 1 200 5,000 3,000.00
workers
Total 3 18,000.00
 CHAPTER-I
WORKING CAPITAL REQUIREMENT

[A] VARIABLE COST :-

1. Decorative Raw
Material(P.M.) :- at 60%

(i) Decoration Item :- 316,000.00

Other Material :-
:-
Total 316,000.00

Annually 3,792,000.00
2 Salary and Wages (P/M)
i) Management and Marketing :- 1 Self
ii) Skilled Worker :- 2 15,000.00
iii)Unskilled Worker :- 1 3,000.00
iv)Accountant :- 0 -
v)Guard :- 0 -
vi)Maintenance Staff :- 0 -
Total 4 18,000.00

Annually= 216,000.00
(Yearly 10% Increment also considered)

3 Utilities (P/M)

i) Electricity Expenses :- 15,000.00

Annually= 180,000.00
(Yearly 10% Increment also considered)

4 Other Expenses(P/M)

i) Rent if any :- -
ii) Repair & Maintenance :- 2,500.00
iii)Travelling Expenses :- 1,250.00
iv) Adv. & Publicity :- 2,500.00
v) Postage, Stationery & Telephone 2,750.00
v)Insurance :- 500.00
vi) Adm. Exp. :- 1,500.00
11,000.00
Annually=
(Yearly 10% Increment also considered) 132,000.00
 CHAPTER-II

[A] Working Capital Requirement :-

(At 60% Capacity for the 1st year)

i) Stock of Decorative Material and Others

ii) Stock of Work in Progress
iii) Stock of finished goods
iv) Sundry Debtors
v) Advances etc.
} 1 Month
1*3,60,000=3,60,000.00

[B] Total Capital Investment :-

i) Total Fixed Capital :- 140,000.00
ii)W.C.Requirment :- 360,000.00

Total 500,000.00

[C] Financial Arrangement :-

AMOUNT OWN Bank

PURPOSE OF FINANCE REQUIRED CONTRIBUTION Finance @ Total

FOR WORKING CAPITAL

360,000.00 36,000.00 324,000.00 360,000.00
FOR TERM LOAN 140,000.00 14,000.00 126,000.00 140,000.00
Total 500,000.00 50,000.00 450,000.00 500,000.00
 Particulars
REPAYMENT SCHEDULE OF TERM LOAN
Sl.No. Op. Bal. EMI Principle Interest@13.25% Cl.Bal
1 140,000.00 3,203.00 1,657.00 1,546.00 138,343.00
2 138,343.00 3,203.00 1,675.00 1,528.00 136,668.00
3 136,668.00 3,203.00 1,694.00 1,509.00 134,974.00
4 134,974.00 3,203.00 1,713.00 1,490.00 133,261.00
5 133,261.00 3,203.00 1,732.00 1,471.00 131,529.00
6 131,529.00 3,203.00 1,751.00 1,452.00 129,778.00
7 129,778.00 3,203.00 1,770.00 1,433.00 128,008.00
8 128,008.00 3,203.00 1,790.00 1,413.00 126,218.00
9 126,218.00 3,203.00 1,809.00 1,394.00 124,409.00
10 124,409.00 3,203.00 1,829.00 1,374.00 122,580.00
11 122,580.00 3,203.00 1,850.00 1,353.00 120,730.00
12 120,730.00 3,203.00 1,870.00 1,333.00 118,860.00
13 118,860.00 3,203.00 1,891.00 1,312.00 116,969.00
14 116,969.00 3,203.00 1,911.00 1,292.00 115,058.00
15 115,058.00 3,203.00 1,933.00 1,270.00 113,125.00
16 113,125.00 3,203.00 1,954.00 1,249.00 111,171.00
17 111,171.00 3,203.00 1,975.00 1,228.00 109,196.00
18 109,196.00 3,203.00 1,997.00 1,206.00 107,199.00
19 107,199.00 3,203.00 2,019.00 1,184.00 105,180.00
20 105,180.00 3,203.00 2,042.00 1,161.00 103,138.00
21 103,138.00 3,203.00 2,064.00 1,139.00 101,074.00
22 101,074.00 3,203.00 2,087.00 1,116.00 98,987.00
23 98,987.00 3,203.00 2,110.00 1,093.00 96,877.00
24 96,877.00 3,203.00 2,133.00 1,070.00 94,744.00
25 94,744.00 3,203.00 2,157.00 1,046.00 92,587.00
26 92,587.00 3,203.00 2,181.00 1,022.00 90,406.00
27 90,406.00 3,203.00 2,205.00 998.00 88,201.00
28 88,201.00 3,203.00 2,229.00 974.00 85,972.00
29 85,972.00 3,203.00 2,254.00 949.00 83,718.00
30 83,718.00 3,203.00 2,279.00 924.00 81,439.00
31 81,439.00 3,203.00 2,304.00 899.00 79,135.00
32 79,135.00 3,203.00 2,329.00 874.00 76,806.00
33 76,806.00 3,203.00 2,355.00 848.00 74,451.00
34 74,451.00 3,203.00 2,381.00 822.00 72,070.00
35 72,070.00 3,203.00 2,407.00 796.00 69,663.00
36 69,663.00 3,203.00 2,434.00 769.00 67,229.00
37 67,229.00 3,203.00 2,461.00 742.00 64,768.00
38 64,768.00 3,203.00 2,488.00 715.00 62,280.00
39 62,280.00 3,203.00 2,515.00 688.00 59,765.00
40 59,765.00 3,203.00 2,543.00 660.00 57,222.00
41 57,222.00 3,203.00 2,571.00 632.00 54,651.00
42 54,651.00 3,203.00 2,600.00 603.00 52,051.00
43 52,051.00 3,203.00 2,628.00 575.00 49,423.00
44 49,423.00 3,203.00 2,657.00 546.00 46,766.00
45 46,766.00 3,203.00 2,687.00 516.00 44,079.00
46 44,079.00 3,203.00 2,716.00 487.00 41,363.00
47 41,363.00 3,203.00 2,746.00 457.00 38,617.00
48 38,617.00 3,203.00 2,777.00 426.00 35,840.00
49 35,840.00 3,203.00 2,807.00 396.00 33,033.00
50 33,033.00 3,203.00 2,838.00 365.00 30,195.00
51 30,195.00 3,203.00 2,870.00 333.00 27,325.00
52 27,325.00 3,203.00 2,901.00 302.00 24,424.00
53 24,424.00 3,203.00 2,933.00 270.00 21,491.00
54 21,491.00 3,203.00 2,966.00 237.00 18,525.00
55 18,525.00 3,203.00 2,998.00 205.00 15,527.00
56 15,527.00 3,203.00 3,032.00 171.00 12,495.00
57 12,495.00 3,203.00 3,065.00 138.00 9,430.00
58 9,430.00 3,203.00 3,099.00 104.00 6,331.00
59 6,331.00 3,203.00 3,133.00 70.00 3,198.00
60 3,198.00 3,203.00 3,198.00 35.00 -
 Yearly Payment of Bank Interest and Other Charges
Discription 1st year 2nd year 3rd year 4th year 5th year
Interest on Term Loan 17,296.00 14,320.00 10,921.00 7,047.00 2,626.00
Interest on Cash Credit 32,198.00 42,930.00 42,930.00 42,930.00 42,930.00
Total Interest 49,494.00 57,250.00 53,851.00 49,977.00 45,556.00
Bank Charges 14,500.00 7,500.00 7,500.00 7,500.00 7,500.00
Total 63,994.00 64,750.00 61,351.00 57,477.00 53,056.00

Annual Interest and Principal repayment schedule of Term Loan

Year O. Balance P.Repayment Interest@13.25% C. Balance
1 140,000.00 21,140.00 17,296.00 118,860.00
2 118,860.00 24,116.00 14,320.00 94,744.00
3 94,744.00 27,515.00 10,921.00 67,229.00
4 67,229.00 31,389.00 7,047.00 35,840.00
5 35,840.00 - 2,626.00 NIL
 CHAPTER-III

A] DEPRECIATION :-

MACHINE
PARTICULARS WORKSHED & EQUIP. TOTAL

Total Value - 140,000.00 140,000.00

Rate of Dep. 10% 15%

Dep. In 1st Year - 21,000.00 21,000.00

WDV - - 119,000.00 - 119,000.00

Dep. In
2nd Year - 17,850.00 17,850.00

WDV - - 101,150.00 - 101,150.00

Dep. In 3rd Year - 15,172.50 15,172.50

WDV - - 85,977.50 - 85,977.50

Dep. In 4th Year 12,896.63 12,896.63

WDV 73,080.88 73,080.88

Dep In 5th Year 10,962.13 10,962.13

WDV 62,118.74 62118.74

B] INTEREST ON WORKING CAPITAL pa:-

(i) C/C @12% pa

Total C/C Proposed 324,000.00

Net 324,000.00
Intrest Yearly @ 12% 38,880.00
 CHAPTER-IV
REVENUE REALIZATION :-

Event &
Particulars Decoration Sales Total
Revenue

1st Year
(at 60% Capacity)
Qty. in MT 225.00 15.00
Rate /mt 20,500.00 12,000.00
Total Inflow(in Rs) 4,612,500.00 180,000.00 4,792,500.00

2nd Year
(at 70% Capacity)
Qty. in MT 262.50 17.50
Rate/MT 21,500.00 12,500.00
Total Inflow(In Rs.) 5,643,750.00 218,750.00 5,862,500.00

3rd Year
(at 75% Capacity)
Qty. in MT. 281.25 18.75
Rate in /MT 22,000.00 13,000.00
Total Inflow(In Rs.) 6,187,500.00 243,750.00 6,431,250.00

4th Year
(at 80% Capacity)
Qty. in MT. 300.00 20.00
Rate in /MT 22,500.00 13,500.00
Total Inflow(In Rs.) 6,750,000.00 270,000.00 7,020,000.00

5th Year
(at 85% Capacity)
Qty. in MT. 318.75 21.25
Rate in /MT 23,000.00 17,570.00
Total Inflow(In Rs.) 7,331,250.00 373,362.50 7,704,612.50
 ANNEXURE-I
PROFITABILITY AND WORKING RESULT
(Rs. In Thousand)

Year 1st 2nd 3rd 4th 5th

Capacity 60% 70% 75% 80% 85%

Revenue
By Service 4,612.50 5,643.75 6,187.50 6,750.00 7,331.25
By Service 180.00 218.75 243.75 270.00 373.36
of wheat)
Total Revenue 4,792.50 5,862.50 6,431.25 7,020.00 7,704.61

Expenses

RM 3,792.00 4,424.00 4,740.00 5,056.00 5,372.00

S&W 216.00 252.00 270.00 288.00 306.00
Utilities 180.00 210.00 225.00 240.00 255.00
Other Exp 132.00 154.00 165.00 176.00 275.88
Dep. 21.00 17.85 15.17 12.90 10.96

Total Exp. 4,341.00 5,057.85 5,415.17 5,772.90 6,219.84

Gross Profit 451.50 804.65 1,016.08 1,247.10 1,484.77

Less:-Int 49.49 57.25 53.85 49.98 45.56
PBIT 402.01 747.40 962.23 1,197.12 1,439.21
Less:IT 7.83 63.84 108.09 176.79 251.60
Net profit 394.18 683.56 854.14 1,020.33 1,187.61
cash accrual 415.18 701.41 869.31 1,033.23 1,198.57
Less:Repayment 38.44 38.44 38.44 38.44 38.44
Net Cash Accruals 376.74 662.97 830.87 994.79 1,160.13
 ANNEXURE-II

PROJECTED BALANCE SHEET

(Rs. In Thousand)

YEAR 1st 2nd 3rd 4th 5th

Liabilities
Promotor`s Cont 50.00 384.18 593.56 1,118.32
Add:-Net Profit 394.18 683.56 854.14 1,020.33 1,187.61
Less:-Drawing 60.00 90.00 120.00 140.00 160.00

Capital [A] 384.18 593.56 1,118.32 1,473.89 2,145.93

Secured Loan

T/L 140.00 118.86 94.74 67.23 35.84

C/C 324.00 324.00 324.00 324.00 324.00

Total [B] 464.00 442.86 418.74 391.23 359.84

Total Liabilities [A+B] 848.18 1,036.42 1,537.06 1,865.12 2,505.77

Assets
Fixed Assets
Gross Block 140.00 119.00 101.15 85.98 73.08
Less:-Dep 21.00 17.85 15.17 12.90 10.96
Net Block [C] 119.00 101.15 85.98 73.08 62.12

Current Assets
R.M
W.I.P
F.G 540.00 630.00 675.00 720.00 765.00
S.I
ADV

Cash in Hand & Bank 189.18 305.27 776.08 1,072.04 1,678.65

Total Current Assets [D] 729.18 935.27 1,451.08 1,792.04 2,443.65

Total Assets [C+D] 848.18 1,036.42 1,537.06 1,865.12 2,505.77

 ANNEXURE-III

PROJECTED CASH FLOW STATEMENT

(Rs. In Thousand)

Year 1st 2nd 3rd 4th 5th

SOURCE OF FUND
(CASH IN FLOW)

PRM. CONT. 50.00

T/L from Bank 140.00
C/C from Bank 324.00
Gross Profit 451.50 804.65 1,016.08 1,247.10 1,484.77
Dep. 21.00 17.85 15.17 12.90 10.96

Total 986.50 822.50 1,031.25 1,260.00 1,495.73

APPLICATION OF FUND
(CASH OUTFLOW)

Fixed Assets 140.00

Current Assets 729.18 206.09 515.81 340.96 651.61
Total Intrest 49.49 57.25 53.85 49.98 45.56
Repayment Schedule 38.44 38.44 38.44 38.44 38.44
Income Tax 7.83 63.84 108.09 176.79 251.60
Drawing 60.00 90.00 120.00 140.00 160.00

Total 1,024.94 455.62 836.19 746.17 1,147.21

O.Bal. 0 (38.44) 156.62

Surplus/Deficit (38.44) 366.88 195.06 513.83 348.52

Closing Balance (38.44) 366.88 156.62 513.83 505.14

 ANNEXURE-IV

PROJECTED BREAKEVEN POINT

(Rs. In Thousand)

YEAR 1st 2nd 3rd 4th 5th

Variable Cost

R/M 3,792.00 4,424.00 4,740.00 5,056.00 5,372.00

Utilities 216.00 252.00 270.00 288.00 306.00
C/C. Int. 32.20 42.93 42.93 42.93 42.93
Adm. Exp. 18.00 19.80 21.78 23.96 26.35
Total 4,058.20 4,738.73 5,074.71 5,410.89 5,747.28

Fixed Cost

S&W 216.00 252.00 270.00 288.00 306.00

T/L Int 17.29 14.32 10.92 7.05 2.63
Dep 21.00 17.85 15.17 12.90 10.96
Other Exp 18.00 19.80 21.78 23.96 26.35
Repair & Maint 30.00 33.00 36.30 39.93 43.92

Total 302.29 336.97 354.17 371.84 389.86

Surplus
Net Sale Realization 4,792.50 5,862.50 6,431.25 7,020.00 7,704.61
Less:-Variable cost 4,058.20 4,738.73 5,074.71 5,410.89 5,747.28

Contributaion 734.30 1,123.77 1,356.54 1,609.11 1,957.33

B.E.P 2.429124 3.334926 3.8301945 4.32742577 5.0205971

 ANNEXURE-V

FINANCIAL INDICATORS

Particulars 1st Year 2nd Year 3rd Year 4TH YEAR 5TH YEAR
A. Sales 4,792,500.00 5,862,500.00 6,431,250.00 7,020,000.00 7,714,602.00
B. Stock 540,000.00 630,000.00 675,000.00 720,000.00 765,000.00
C. Gross Profit 451,500.00 804,650.00 1,016,080.00 1,247,100.00 1,487,770.00
D. Net Profit 394,180.00 683,560.00 854,140.00 1,020,330.00 1,187,610.00
E. Current Assets 729,180.00 935,270.00 1,451,080.00 1,792,400.00 2,443,650.00
F. Current Liabilities 324,000.00 324,000.00 324,000.00 324,000.00 324,000.00
G. Working Capital (F - G) 405,180.00 611,270.00 1,127,080.00 1,468,400.00 2,119,650.00
H. Current Ratio (F / G) 2.25 2.89 4.48 5.53 7.54
I. Stock Turnover Ratio (C/A*100) 11.27 10.75 10.50 10.26 9.92
J. Gross Profit Ratio (D/A*100) 9.42 13.73 15.80 17.76 19.29
k. Net Profit Ratio(E/A*100) 8.22 11.66 13.28 14.53 15.39

DEBTOR TURNOVER 38 DAYS INVENTORY DEBTORS CREDITORS

INVENTORY TURN OVER 43 DAYS 252,000.00 138,500.00 265,600.00
CREDITORS TURNOVER 20 DAYS
WORKING CAPITAL CYCLE 80.95 DAYS
IN MONTH 6.75 MONTHS

SIGNATURE OF PROP.

S.YADAV