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    Cost of Project and Means of Finance Cost of Project Amount (RS)

    Uploaded by

    Manish Agarwal
    The document provides financial details of a proposed machinery rental business, including: - Total project cost is Rs. 12,65,000 to be financed through Rs. 5,15,000 of own contribution and a Rs. 7,50,000 term loan. - Over 5 years, the business is projected to generate a net profit ranging from Rs. 10,24,345 to Rs. 16,82,143 with an average debt service coverage ratio of 1.38. - By the 5th year, the term loan will be fully repaid and the business will have net assets of Rs. 56,12,872.

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    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd

    Cost of Project and Means of Finance Cost of Project Amount (RS)

    Uploaded by

    Manish Agarwal
    20 views9 pages
    The document provides financial details of a proposed machinery rental business, including: - Total project cost is Rs. 12,65,000 to be financed through Rs. 5,15,000 of own contribution and a Rs. 7,50,000 term loan. - Over 5 years, the business is projected to generate a net profit ranging from Rs. 10,24,345 to Rs. 16,82,143 with an average debt service coverage ratio of 1.38. - By the 5th year, the term loan will be fully repaid and the business will have net assets of Rs. 56,12,872.

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    project report

    Original Title

    Awadh Machines

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    The document provides financial details of a proposed machinery rental business, including: - Total project cost is Rs. 12,65,000 to be financed through Rs. 5,15,000 of own contribution and a Rs. 7,50,000 term loan. - Over 5 years, the business is projected to generate a net profit ranging from Rs. 10,24,345 to Rs. 16,82,143 with an average debt service coverage ratio of 1.38. - By the 5th year, the term loan will be fully repaid and the business will have net assets of Rs. 56,12,872.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    20 views9 pages

    Cost of Project and Means of Finance Cost of Project Amount (RS)

    Uploaded by

    Manish Agarwal
    The document provides financial details of a proposed machinery rental business, including: - Total project cost is Rs. 12,65,000 to be financed through Rs. 5,15,000 of own contribution and a Rs. 7,50,000 term loan. - Over 5 years, the business is projected to generate a net profit ranging from Rs. 10,24,345 to Rs. 16,82,143 with an average debt service coverage ratio of 1.38. - By the 5th year, the term loan will be fully repaid and the business will have net assets of Rs. 56,12,872.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    of 9

    M/S AWADH MACHINES

    HUSSAINABAD, CHOWK, LUCKNOW

    COST OF PROJECT AND MEANS OF FINANCE


    Cost of Project Amount(Rs)

    Plant & Machinery 1265000.00


    Total Cost of project 1265000.00

    Means of Finance

    Own Contribution 515000.00


    Term Loan from Bank 750000.00

    Total 1265000.00
    Annexure (b) to the Project
    M/S AWADH MACHINES
    HUSSAINABAD, CHOWK, LUCKNOW
    PROJECTED INCOME STATEMENT
    A) INCOME/EXPENSES Ist Year Iind Year IIIrd Year Ivth Year Vth Year

    Rental Income 540000.00 540000.00 540000.00 540000.00 540000.00

    B) Total Income 540000.00 540000.00 540000.00 540000.00 540000.00

    C) Cost of Sale
    Repairs & Maintenance 25000.00 32000.00 38000.00 44000.00 51000.00
    Wages & Salary 100000.00 120000.00 130000.00 140000.00 150000.00
    Electricity 0.00 0.00 0.00 0.00 0.00
    Depreciation 189750.00 161287.50 137094.38 116530.22 99050.69
    0.00 0.00 0.00 0.00 0.00

    D) Total Cost OF Sale 314750.00 313287.50 305094.38 300530.22 300050.69


    E) Gross Profit(B-D) 225250.00 226712.50 234905.63 239469.78 239949.31
    Administrative Expenses 23000.00 60000.00 60000.00 60000.00 60000.00
    F) Profit Before Intt& tax 202250.00 166712.50 174905.63 179469.78 179949.31
    Interest on term Loan 79815.38 65585.30 49637.59 31764.92 11734.95
    G) Profit After Intt Before Tax 122434.62 101127.20 125268.04 147704.86 168214.37
    Self Withdawls 20000.00 48000.00 60000.00 72000.00 84000.00
    H) Profit Trf to Capital 102434.62 53127.20 65268.04 75704.86 84214.37
    M/S AWADH MACHINES
    Projected Balance Sheet
    LIABILITIES Ist Year Iind Year IIIrd Year Ivth Year Vth Year

    Capital 515000.00 515000.00 515000.00 515000.00 515000.00


    Profit & LossA/c 102434.62 155561.81 220829.85 296534.71 380749.08
    Term Loan From Bank 632107.76 499985.43 351915.39 185972.68 0.00
    Total 1249542.37 1170547.24 1087745.24 997507.390 895749.08

    ASSETS Ist Year Iind Year IIIrd Year Ivth Year Vth Year
    Fixed Assets less Dep 1075250.00 913962.50 776868.13 660337.91 561287.22
    Cash and Bank 174292.37 256584.74 310877.11 337169.48 334461.86

    Total 1249542.37 1170547.24 1087745.24 997507.39 895749.08

    0.00 0.00 0.00 0.00 0.00


    .
    M/S AWADH MACHINES

    CALCULATION OF DEBT SERVICE COVERAGE RATIO


    Particulars
    Ist Year Iind Year IIIrd Year Ivth Year Vth Year
    Net Profit After tax During yr. 122434.62 101127.20 125268.04 147704.86 168214.37
    Add: Depreciation 189750.00 161287.50 137094.38 116530.22 99050.69
    Total Amount available For
    serving intt & Installment 312184.62 262414.70 262362.41 264235.08 267265.05

    Interest TL 79815.38 65585.30 49637.59 31764.92 11734.95


    Installment TL 117892.24 132122.33 148070.04 165942.71 185972.68
    197707.63 197707.63 197707.63 197707.63 197707.63

    Debt Service Coverage Ratio 1.58 1.33 1.33 1.34 1.35

    Average DSCR 1.38


    6 Depreciation Plant Total Dep. WDV
    Rate of Depreciation 15%

    Ist Year 1265000.00


    Less : Depreciation 189750.00 189750.00 1075250.00

    Iind Year 1075250.00


    Less : Depreciation 161287.50 161287.50 913962.50

    IIIrd Year 913962.50


    Less : Depreciation 137094.38 137094.38 776868.13

    Ivth Year 776868.13


    Less : Depreciation 116530.22 116530.22 660337.91

    Vth Year 660337.91


    Less : Depreciation 99050.69 99050.69 561287.22
    Loan Principal Amount 750000
    Rate 0.1145
    Monthly Rate 0.009542
    Years 5
    Months 60
    Month Opening Balance Installments Pricipal Amt.
    1 750000.00 16475.64 9319.39
    2 740680.61 16475.64 9408.31
    3 731272.31 16475.64 9498.08
    4 721774.23 16475.64 9588.71
    5 712185.52 16475.64 9680.20
    6 702505.32 16475.64 9772.56
    7 692732.76 16475.64 9865.81
    8 682866.95 16475.64 9959.95
    9 672907.00 16475.64 10054.98
    10 662852.02 16475.64 10150.92
    11 652701.10 16475.64 10247.78
    12 642453.32 16475.64 10345.56
    13 632107.76 16475.64 10444.27
    14 621663.48 16475.64 10543.93
    15 611119.55 16475.64 10644.54
    16 600475.01 16475.64 10746.10
    17 589728.91 16475.64 10848.64
    18 578880.27 16475.64 10952.15
    19 567928.12 16475.64 11056.65
    20 556871.46 16475.64 11162.15
    21 545709.31 16475.64 11268.66
    22 534440.65 16475.64 11376.18
    23 523064.47 16475.64 11484.73
    24 511579.74 16475.64 11594.31
    25 499985.43 16475.64 11704.94
    26 488280.49 16475.64 11816.63
    27 476463.86 16475.64 11929.38
    28 464534.48 16475.64 12043.20
    29 452491.28 16475.64 12158.11
    30 440333.17 16475.64 12274.12
    31 428059.04 16475.64 12391.24
    32 415667.80 16475.64 12509.47
    33 403158.33 16475.64 12628.83
    34 390529.50 16475.64 12749.33
    35 377780.17 16475.64 12870.98
    36 364909.18 16475.64 12993.79
    37 351915.39 16475.64 13117.78
    38 338797.61 16475.64 13242.94
    39 325554.67 16475.64 13369.30
    40 312185.37 16475.64 13496.87
    41 298688.50 16475.64 13625.65
    42 285062.85 16475.64 13755.66
    43 271307.19 16475.64 13886.91
    44 257420.28 16475.64 14019.42
    45 243400.86 16475.64 14153.19
    46 229247.67 16475.64 14288.23
    47 214959.44 16475.64 14424.56
    48 200534.88 16475.64 14562.20
    49 185972.68 16475.64 14701.15
    50 171271.53 16475.64 14841.42
    51 156430.11 16475.64 14983.03
    52 141447.08 16475.64 15125.99
    53 126321.09 16475.64 15270.32
    54 111050.77 16475.64 15416.03
    55 95634.74 16475.64 15563.12
    56 80071.62 16475.64 15711.62
    57 64360.00 16475.64 15861.53
    58 48498.47 16475.64 16012.88
    59 32485.59 16475.64 16165.67
    60 16319.92 16475.64 16319.92
    Interest Closing Balance principal interest
    7156.25 740680.61
    7067.33 731272.31
    6977.56 721774.23
    6886.93 712185.52
    6795.44 702505.32
    6703.07 692732.76
    6609.83 682866.95
    6515.69 672907.00
    6420.65 662852.02
    6324.71 652701.10
    6227.86 642453.32
    6130.08 632107.76 117892.24 79815.38
    6031.36 621663.48
    5931.71 611119.55
    5831.10 600475.01
    5729.53 589728.91
    5627.00 578880.27
    5523.48 567928.12
    5418.98 556871.46
    5313.48 545709.31
    5206.98 534440.65
    5099.45 523064.47
    4990.91 511579.74
    4881.32 499985.43 132122.33 65585.30
    4770.69 488280.49
    4659.01 476463.86
    4546.26 464534.48
    4432.43 452491.28
    4317.52 440333.17
    4201.51 428059.04
    4084.40 415667.80
    3966.16 403158.33
    3846.80 390529.50
    3726.30 377780.17
    3604.65 364909.18
    3481.84 351915.39 148070.04 49637.59
    3357.86 338797.61
    3232.69 325554.67
    3106.33 312185.37
    2978.77 298688.50
    2849.99 285062.85
    2719.97 271307.19
    2588.72 257420.28
    2456.22 243400.86
    2322.45 229247.67
    2187.40 214959.44
    2051.07 200534.88
    1913.44 185972.68 165942.71 31764.92
    1774.49 171271.53
    1634.22 156430.11
    1492.60 141447.08
    1349.64 126321.09
    1205.31 111050.77
    1059.61 95634.74
    912.51 80071.62
    764.02 64360.00
    614.10 48498.47
    462.76 32485.59
    309.97 16319.92
    155.72 0.00 185972.68 11734.95

    750000 238538.1

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