PROJECT REPORT

Utkrsta apparel India (OPC) Private Ltd

FOR

ESTABLISHMENT OF NEW VENTURE

Of
Readymade garments

Prepared By-

AGRAWAL BARANWAL & CO.

CHARTERED ACCOUNTANTS
HN Singh Chawk, 72 Govind Nagari, Basharatpur Gorakhpur
 Agrawal Baranwal and Co
Chartered Accountants

PROJECT REPORT

1. Name of the Promoters : Ram Garib Singh

2. Address : H9 Sector-15 Gida, Gorakhpur - 273001

3. Site Address : GIDA, Gorakhpur

4. Nature : Once person Company (Private Limited)

4. Work : Manufacturing & Trading

5. Cost of Project : Rs. 143.70 Lakhs.

I) Fixed Assets : Rs. 93.70 Lakhs.

Working Capital : Rs. 50.00 Lakhs
Total : Rs. 143.70 Lakhs

6. Means Of Finance:

i) Self Margin Money : Rs. 23.70 Lakhs.

ii) Working Capital : Rs. 50.00 Lakhs
iii) Term Loan : Rs. 70.00 Lakhs
Total : Rs. 143.70 Lakhs
7. Justification

The Promoter wishes to set up a NEW UNIT at GIDA for Readymade

Garments in order to meet the demand and increasing usage of the said product.
Currently few manufactures of the same trade are in Gorakhpur resulting in
purchase of the product from adjoining cities. Thus this new proposed unit will be
able to meet the demand in time. Further the Promoter is engaged in the same
line of business for last 15 Years in Nepal and has vast experience and customer
base.

STRICTLY CONFIDENTIAL Page 2

 Agrawal Baranwal and Co
Chartered Accountants

FINANCIAL ANALYSIS OF THE PROJECT

The total fund requirement and financial feasibility of the project is as follows:
Detailed analysis of Cost of Project Annexure 1
5 Years profitability statement Annexure 2
5 Years Projected Balance Sheet Annexure 3
5 Years Projected Fund Flow statement Annexure 4
Repayment of Term Loan Annexure 5
Depreciation Schedule Annexure 6
DSCR Schedule Annexure 7

Notes-
 Interest is calculated @ 10% on Term Loan.
 Interest is calculated @ 11% on Working Capital Loan.

DISCLAIMER

The above analysis has been made on certain assumptions which may change in due course of
time due to several factors, like price rise, change in taxation rates, change in interest rates,
government policies, etc.

For Agrawal Baranwal & Co.

(Chartered Accountants)

CA. Mohit Agrawal

Partner Date- 09.11.2023

STRICTLY CONFIDENTIAL Page 3

 ANNEXURE 1

DETAILED COST OF THE PROJECT

S. NO. PARTICULARS AMOUNT (In Rs.)

A FIXED ASSETS

1 PLANT MACHINERY & EQUIPMENTS 9,370,000.00

TOTAL COST OF THE FIXED ASSETS 9,370,000.00

B WORKING CAPITAL
1 WORKING CAPITAL REQUIREMNET 5,000,000.00

TOTAL COST OF PROJECT (A+B) 14,370,000.00

MEANS OF FINANCE

S. NO. PARTICULARS AMOUNT (In Rs.)

1 PROPRIETOR'S CONTRIBUTION 2,370,000.00

2 TERM LOAN FROM BANK/ OTHER FINANCIAL INSTITUTIONS 7,000,000.00
3 CC FROM BANK 5,000,000.00

TOTAL 14,370,000.00
 ANNEXURE 2

PROJECTED PROFITABILITY STATEMENT

PARTICULARS YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

RECEIPTS

Sale 45,000,000.00 51,750,000.00 59,512,500.00 68,439,375.00 78,705,281.00

Closing stock 6,500,000.00 7,500,000.00 8,500,000.00 9,500,000.00 11,000,000.00

Total 51,500,000.00 59,250,000.00 68,012,500.00 77,939,375.00 89,705,281.00

Expenses
Opening Stock - 6,500,000.00 7,500,000.00 8,500,000.00 9,500,000.00
Purchases & Consumables 44,805,000.00 45,504,000.00 52,437,638.00 60,636,834.00 70,418,646.00
Electricty and Fuel Exp 100,000.00 110,000.00 121,000.00 133,100.00 146,410.00
Salary Expenses 1,248,000.00 1,435,200.00 1,650,480.00 1,898,052.00 2,182,760.00
Freight 100,000.00 115,000.00 132,250.00 152,088.00 174,901.00
Repair & Maintanance Expenses 15,000.00 17,250.00 19,838.00 22,814.00 26,236.00
Office Exp 35,000.00 40,250.00 46,288.00 53,231.00 61,216.00
Interest on TL 646,000.00 502,000.00 358,000.00 214,000.00 70,000.00
Interest on CC 550,000.00 550,000.00 550,000.00 550,000.00 550,000.00
Depreciation 1,705,500.00 1,464,675.00 1,258,474.00 1,081,853.00 930,510.00
Administrative & Packing Expenses 75,000.00 86,250.00 99,188.00 114,066.00 131,176.00

Total Cost of Sales 49,279,500.00 56,324,625.00 64,173,156.00 73,356,038.00 84,191,855.00

Net Profit 2,220,500.00 2,925,375.00 3,839,344.00 4,583,337.00 5,513,426.00

Depreciation added back 1,705,500.00 1,464,675.00 1,258,474.00 1,081,853.00 930,510.00

Cash Accruals 3,926,000.00 4,390,050.00 5,097,818.00 5,665,190.00 6,443,936.00

Drawings 180,000.00 350,000.00 1,000,000.00 1,250,000.00 1,500,000.00

Net Cash Accruals 3,746,000.00 4,040,050.00 4,097,818.00 4,415,190.00 4,943,936.00

 ANNEXURE 3

PROJECTED BALANCE SHEET

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

SOURCE OF FUNDS

Promoters Capital 2,370,000.00 4,410,500.00 6,985,875.00 9,825,219.00 13,158,556.00

Addition -
Add: Reserve & Surplus 2,220,500.00 2,925,375.00 3,839,344.00 4,583,337.00 5,513,426.00
Less: Drawings 180,000.00 350,000.00 1,000,000.00 1,250,000.00 1,500,000.00
4,410,500.00 6,985,875.00 9,825,219.00 13,158,556.00 17,171,982.00

Secured Loan
Term Loan 5,560,000.00 4,120,000.00 2,680,000.00 1,240,000.00 -
CC Loan 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00

Current Liabilities & Provisions

Sundry Creditors 3,500,000.00 4,000,000.00 4,500,000.00 5,000,000.00 5,500,000.00

TOTAL 18,470,500.00 20,105,875.00 22,005,219.00 24,398,556.00 27,671,982.00

APPLICATION OF FUNDS

Fixed Assets 12,370,000.00 12,370,000.00 12,370,000.00 12,370,000.00 12,370,000.00

Addition -
Less: Accumulated Deprecation 1,705,500.00 3,170,175.00 4,428,649.00 5,510,502.00 6,441,012.00
Net Block 10,664,500.00 9,199,825.00 7,941,351.00 6,859,498.00 5,928,988.00

Current Assets
Sundry Debtors & Other Assets 550,000.00 2,000,000.00 3,000,000.00 5,000,000.00 7,500,000.00
Closing Stock 6,500,000.00 7,500,000.00 8,500,000.00 9,500,000.00 11,000,000.00
Cash & Bank Balances 756,000.00 1,406,050.00 2,563,868.00 3,039,058.00 3,242,994.00

TOTAL 18,470,500.00 20,105,875.00 22,005,219.00 24,398,556.00 27,671,982.00

 ANNEXURE 5

REPAYMENT SCHEDULE FOR TERM LOAN

TOTAL
OPENING PRINCIPAL INTEREST
YEAR QTR CLOSING INTEREST
BALANCE REPAYMENT REPAYMENT
BALANCE 10%
Rs. Rs. Rs. Rs. Rs.

1 I 7,000,000.00 360,000.00 6,640,000.00 175,000.00

II 6,640,000.00 360,000.00 6,280,000.00 166,000.00
III 6,280,000.00 360,000.00 5,920,000.00 157,000.00
IV 5,920,000.00 360,000.00 5,560,000.00 148,000.00 646,000.00
-
2 I 5,560,000.00 360,000.00 5,200,000.00 139,000.00
II 5,200,000.00 360,000.00 4,840,000.00 130,000.00
III 4,840,000.00 360,000.00 4,480,000.00 121,000.00
IV 4,480,000.00 360,000.00 4,120,000.00 112,000.00 502,000.00
-
3 I 4,120,000.00 360,000.00 3,760,000.00 103,000.00
II 3,760,000.00 360,000.00 3,400,000.00 94,000.00
III 3,400,000.00 360,000.00 3,040,000.00 85,000.00
IV 3,040,000.00 360,000.00 2,680,000.00 76,000.00 358,000.00
-
4 I 2,680,000.00 360,000.00 2,320,000.00 67,000.00
II 2,320,000.00 360,000.00 1,960,000.00 58,000.00
III 1,960,000.00 360,000.00 1,600,000.00 49,000.00
IV 1,600,000.00 360,000.00 1,240,000.00 40,000.00 214,000.00
-
5 I 1,240,000.00 360,000.00 880,000.00 31,000.00
II 880,000.00 360,000.00 520,000.00 22,000.00
III 520,000.00 360,000.00 160,000.00 13,000.00
IV 160,000.00 160,000.00 - 4,000.00 70,000.00

TOTAL INTEREST PAYABLE 1,790,000

Note- Term Loan will be paid in 5 years time,

INTEREST ON WORKING CAPITAL LOAN

YEAR OPENING REPAYMENT CLOSING INTEREST

BALANCE BALANCE 11.00%

1 5,000,000.00 - 5,000,000.00 550,000.00

2 5,000,000.00 - 5,000,000.00 550,000.00

3 5,000,000.00 - 5,000,000.00 550,000.00

4 5,000,000.00 - 5,000,000.00 550,000.00

5 5,000,000.00 - 5,000,000.00 550,000.00

 ANNEXURE 6

CALCULATION FOR DEPRECIATION

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

FIXED ASSETS
PLANT & MACHINERY 9,370,000.00
Opening balance - 7,964,500.00 6,769,825.00 5,754,351.00 4,891,198.00
Less: Depreciation @ 15% 1,405,500.00 1,194,675.00 1,015,474.00 863,153.00 733,680.00
W.D.V. at the end of year 7,964,500.00 6,769,825.00 5,754,351.00 4,891,198.00 4,157,518.00

BUILDING CONSTRUCTION 3,000,000.00 2,700,000.00 2,430,000.00 2,187,000.00 1,968,300.00

Less: Depreciation @ 10% 300,000.00 270,000.00 243,000.00 218,700.00 196,830.00
W.D.V. at the end of year 2,700,000.00 2,430,000.00 2,187,000.00 1,968,300.00 1,771,470.00

DEPRECIATION FOR THE YEAR 1,705,500.00 1,464,675.00 1,258,474.00 1,081,853.00 930,510.00

ACCUMULATED DEPRECIATION 1,705,500.00 3,170,175.00 4,428,649.00 5,510,502.00 6,441,012.00

NET BLOCK AS AT YEAR END 10,664,500.00 9,199,825.00 7,941,351.00 6,859,498.00 5,928,988.00

NOTE:
1) Depreciation has been calculated on Written Down Value Method
 ANNEXURE 7

DEBT-SERVICE COVERAGE RATIO

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Net Profit 2,220,500.00 2,925,375.00 3,839,344.00 4,583,337.00 5,513,426.00

Interest On Secured Loan 1,196,000.00 1,052,000.00 908,000.00 764,000.00 620,000.00

Depreciation 1,705,500.00 1,464,675.00 1,258,474.00 1,081,853.00 930,510.00

TOTAL ( A ) 5,122,000.00 5,442,050.00 6,005,818.00 6,429,190.00 7,063,936.00

Repayment Of Secured Loan 1,440,000.00 1,440,000.00 1,440,000.00 1,440,000.00 1,240,000.00

Interest On Secured Loan 1,196,000.00 1,052,000.00 908,000.00 764,000.00 620,000.00

TOTAL ( B ) 2,636,000.00 2,492,000.00 2,348,000.00 2,204,000.00 1,860,000.00

D.S.C.R (A/B) 1.94 2.18 2.56 2.92 3.80

Average D.S.C.R on 5 Year Basis = 2.68