Project Report

Prop. Satish Kumar Dixit

Bahraich Road, Vill. Kalhapur, Teh. Payagpur, Bahraich, U.P. 271871

Project :
Kirana Retail Store
Bank :
Allahabad Bank, Khajuri, Payagpur, Bahraich (U.P.)
…………………………………………………………..
Estimates for making the Projection :

1. We have examined the projection in accordance with Standard on Assurance Engagement 3400, “The Examination of Prospective
Financial Information”, issued by the Institute of Chartered Accountants of India. The preparation and presentation of the projection
including the underlying assumptions, and information as provided by the entity and also as per the industry, the prospective
financial information, is the responsibility of the entity. Our responsibility is to examine the evidence supporting the assumptions
(excluding the hypothetical assumption) and other information in the prospective financial information. Our responsibility does not
include verification of projections. Therefore, we do not vouch for the accuracy of the same.

2. This projection has been prepared for loan purpose . The projection has been prepared using a set of assumptions that include
hypothetical assumptions about future events and entity’s actions that are not necessarily expected to occur. Consequently, users
are cautioned that this projection may not be appropriate for purposes other than that described above.

3. Even if the events anticipated under the hypothetical assumptions described above occur, actual results are still likely to be
different from the projection since other anticipated events frequently do not occur as expected and the variation may be material.
 Dixit Traders
Prop. Satish Kumar Dixit

Index

Sr. No. Schedule

1 Introduction -

2 Project Overview -

3 Fixed Capital 1

4 Working Capital 2

5 Source of Finance 3

6 Manpower Requirement 4

7 Depreciation 5

8 Interest Cost & EMI Cart 6

9 Calutation OF DSCR & BEP 7

10 Performance Ratio 8

11 Projected Profit & Loss Account 9

12 Projected Balance Sheet 10

13 PAN & Aadhar Xerox -

 Dixit Traders
Prop. Satish Kumar Dixit

Project Overview

Name of the firm : Dixit Traders

Name of the proprietor : Prop. Satish Kumar Dixit

Age : 54 Yrs

Bahraich Road, Vill. Kalhapur, Teh.

Address : Payagpur, Bahraich, U.P. 271871

Project : Kirana Retail Store

Fixed Capital : Rs. -

Working Capital : Rs. 900,000

Total Capital Outlay : Rs. 900,000

Loan Applied : Rs. 900,000

Performance Ratio

Year 1st 2nd 3rd 4th 5th

Net profit before tax to sales 12.94 13.75 13.94 14.11 14.27

Net profit after tax to sales 12.94 13.75 13.94 14.11 14.27

Break Even Point (B.E.P.) 19.15 12.25 9.02 5.62 2.02

Debt Service Coverage Ratio 1.47 1.98 2.17 2.39 2.67

Average DSCR 2.13

Schedule: 1

Fixed Capital Cost Rs.

Plant & Machinery -

The estimated cost -

-
Inclusive of Installation & GST
-
Charges
Total -

Schedule: 2

Working Capital

900,000
Other - 900,000
Total 900,000

Schedule: 3

Source of Finance

Cost of Project
Working Capital 900,000
900,000

Bank Finance
100% of the project cost 900,000
Schedule: 4

Man power requirement and their wages/salary

Direct Labour (on the basis of single shift)

Employees No. of Wages/Salary

Wages P.A.
Persons P.M

Skilled Worker 0 - -

Semi Skilled Workers 0 - -

Helpers 2 4,000 96,000

Total 2 4,000 96,000

Schedule: 5

Depreciation

Years 1st 2nd 3rd 4th 5th

Assets

Plant & Machinery

Opening - - - -

Purchase during the year - - - - -

Depreciation @ 15% - - - - -

Closing - - - - -
* Assuming subsidy amount of Rs 1, 50,000/- will be credited by the end of the first year
Schedule: 6
Interest Cost : Assuming rate of interest @ 11 % per annum
Years Months Opening BalanInterest Principal EMI Closing Amt
900,000
1st April 900,000 8,250 11,318 19,568 888,682
May 888,682 8,146 11,422 19,568 877,260
June 877,260 8,042 11,526 19,568 865,734
July 865,734 7,936 11,632 19,568 854,102
Aug 854,102 7,829 11,739 19,568 842,363
Sept 842,363 7,722 11,846 19,568 830,517
Otc 830,517 7,613 11,955 19,568 818,562
Nov 818,562 7,503 12,065 19,568 806,497
Dec 806,497 7,393 12,175 19,568 794,322
Jan 794,322 7,281 12,287 19,568 782,035
Feb 782,035 7,169 12,399 19,568 769,636
March 769,636 7,055 12,513 19,568 757,123
Total 91,939 142,877 234,816
2nd April * 607,123 5,565 10,126 15,691 596,997
May 596,997 5,472 10,219 15,691 586,778
June 586,778 5,379 10,313 15,691 576,465
July 576,465 5,284 10,407 15,691 566,058
Aug 566,058 5,189 10,503 15,691 555,556
Sept 555,556 5,093 10,599 15,691 544,957
Otc 544,957 4,995 10,696 15,691 534,261
Nov 534,261 4,897 10,794 15,691 523,467
Dec 523,467 4,798 10,893 15,691 512,574
Jan 512,574 4,699 10,993 15,691 501,581
Feb 501,581 4,598 11,094 15,691 490,487
March 490,487 4,496 11,195 15,691 479,292
Total 60,466 127,831 188,297
3rd April 479,292 4,394 11,298 15,691 467,994
May 467,994 4,290 11,401 15,691 456,593
June 456,593 4,185 11,506 15,691 445,087
July 445,087 4,080 11,611 15,691 433,475
Aug 433,475 3,974 11,718 15,691 421,758
Sept 421,758 3,866 11,825 15,691 409,932
Otc 409,932 3,758 11,934 15,691 397,999
Nov 397,999 3,648 12,043 15,691 385,955
Dec 385,955 3,538 12,153 15,691 373,802
Jan 373,802 3,427 12,265 15,691 361,537
Feb 361,537 3,314 12,377 15,691 349,160
Schedule: 6
Interest Cost : Assuming rate of interest @ 11 % per annum
Years Months Opening BalanInterest Principal EMI Closing Amt
March 349,160 3,201 12,491 15,691 336,669
Total 45,674 142,623 188,297

4th April 336,669 3,086 12,605 15,691 324,064

May 324,064 2,971 12,721 15,691 311,343
June 311,343 2,854 12,837 15,691 298,505
July 298,505 2,736 12,955 15,691 285,550
Aug 285,550 2,618 13,074 15,691 272,476
Sept 272,476 2,498 13,194 15,691 259,283
Otc 259,283 2,377 13,315 15,691 245,968
Nov 245,968 2,255 13,437 15,691 232,531
Dec 232,531 2,132 13,560 15,691 218,972
Jan 218,972 2,007 13,684 15,691 205,287
Feb 205,287 1,882 13,810 15,691 191,478
March 191,478 1,755 13,936 15,691 177,542
Total 29,169 159,127 188,297

5th April 177,542 1,627 14,064 15,691 163,478

May 163,478 1,499 14,193 15,691 149,285
June 149,285 1,368 14,323 15,691 134,962
July 134,962 1,237 14,454 15,691 120,508
Aug 120,508 1,105 14,587 15,691 105,921
Sept 105,921 971 14,720 15,691 91,200
Otc 91,200 836 14,855 15,691 76,345
Nov 76,345 700 14,992 15,691 61,353
Dec 61,353 562 15,129 15,691 46,224
Jan 46,224 424 15,268 15,691 30,957
Feb 30,957 284 15,408 15,691 15,549
March 15,549 143 15,549 15,691 0.1
Total 10,755 177,541 188,297
Schedule: 7

Calulation of Debt Service Coverage

Ratio
Years 1st 2nd 3rd 4th 5th

Interest on Bank Loan 91,939 60,466 45,674 29,169 10,755

Cash Accruals 388,061 433,034 460,951 490,082 520,483

PAT but before dep and Interest (A) 480,000 493,500 506,625 519,251 531,238

Repayment of Bank Loan 234,816 188,297 188,297 188,297 188,297

Interest on Bank Loan 91,939 60,466 45,674 29,169 10,755

Repayment Obligations (B) 326,755 248,763 233,971 217,466 199,052

Debt Service Coverage Ratio (Times)

A/B 1.47 1.98 2.17 2.39 2.67

Average DSCR 2.13

Calulation of Break Even Point

Years 1st 2nd 3rd 4th 5th

Realisation 3,000,000 3,150,000 3,307,500 3,472,875 3,646,519

Variable Cost 2,520,000 2,656,500 2,800,875 2,953,624 3,115,280
Contribution 480,000 493,500 506,625 519,251 531,238
Fixed Cost 91,939 60,466 45,674 29,169 10,755
Break Even Point % 19.15 12.25 9.02 5.62 2.02

Schedule: 8

Performance Ratio
Years 1st 2nd 3rd 4th 5th
%
Net profit before tax to sales 12.94 13.75 13.94 14.11 14.27
Net profit after tax to sales 12.94 13.75 13.94 14.11 14.27
Break Even Point (B.E.P.) 19.15 12.25 9.02 5.62 2.02
Debt Service Coverage Ratio (Times) 1.47 1.98 2.17 2.39 2.67
Average DSCR 2.13
Schedule: 9
Projected Profit & Loss Account For The Five Years As On Year End
Years 1st 2nd 3rd 4th 5th
Rs.
Turnover
3,000,000 3,150,000 3,307,500 3,472,875 3,646,519

Total (A) 3,000,000 3,150,000 3,307,500 3,472,875 3,646,519

Recurring Expenses
Material/ Purchasing Cost 2,310,000 2,425,500 2,546,775 2,674,114 2,807,819
General Expenses 210,000 231,000 254,100 279,510 307,461
Total (B) 2,520,000 2,656,500 2,800,875 2,953,624 3,115,280
Profit before interest & depreciation
(A-B) 480,000 493,500 506,625 519,251 531,238
Depreciation - - - - -
Interest Loan @11% 91,939 60,466 45,674 29,169 10,755
Total (C) 91,939 60,466 45,674 29,169 10,755

Profit before tax (A-B-C) 388,061 433,034 460,951 490,082 520,483

Provision For Tax (D) - - - - -

Profit after tax E (A-B-C-D) 388,061 433,034 460,951 490,082 520,483

Depreciation added back (F) - - - - -

Cash Accruals G (E+F) 388,061 433,034 460,951 490,082 520,483

Repayment of Bank Loan (H) 234,816 188,297 188,297 188,297 188,297

Surpluse (G-H) 153,245 244,737 272,654 301,785 332,186

Schedule: 10

Dixit Traders

Prop. Satish Kumar Dixit

Projected Balance Sheet For The Five Years As On Year End

Year

1st 2nd 3rd 4th 5th

Liabilities

Capital Account
- 268,061 571,095 892,046 1,232,128
Margin Money - - - - -
Add: Profit for the year 388,061 433,034 460,951 490,082 520,483
388,061 433,034 460,951 490,082 520,483
Less: Withdraws 120,000 130,000 140,000 150,000 160,000
268,061 571,095 892,046 1,232,128 1,592,611

Provision for taxation - - - - -

Unsecured Loans
Bank Loan 757,123 479,292 336,669 177,542 0

Total (A) 1,025,184 1,050,387 1,228,715 1,409,669 1,592,611

Assets

Fixed Assets - - - - -
Less : Depreciation - - - - -
- - - - -

Currentt Assets 1,025,184 1,050,387 1,228,715 1,409,669 1,592,611

Closing Stock

Sundry Debtor

Cash In Hand/Bank - - - - -

Total (B) 1,025,184 1,050,387 1,228,715 1,409,669 1,592,611

- - - - -