The document is a loan application from M/s. Pradhaan Engineering Co., a partnership firm, seeking a term loan of Rs. 45.40 lakhs and a working capital limit of Rs. 15 lakhs to purchase a CNC VMC machine and accessories to expand their manufacturing of domestic engineering products. The firm is owned by partners Hemang Chiren Doshi and Mittal Kavin Doshi and will use the loan to purchase a Haas CNC VMC machine costing Rs. 44.10 lakhs. Financial projections show an average debt service coverage ratio of 2.18x over the loan period, indicating the ability to repay the loan.

1. PROJECT REPORT
for
TERM LOAN
M/S. PRADHAAN ENGINEERING
CO,
525-526 QUICK METAL
COMPUND, ODHAV,
Ahmedabad – 382415,
Gujarat.

2. M/s. PARDHAAN ENGINEERING CO
LOAN INFORMATION
NAME OF APPLICANT UNIT M/S. PARDHAAN ENGINEERING CO
PURPOSE OF LOAN TO PURCHASE PLAND AND MACHINERY
TYPE OF LOAN TERM LOAN AND WORKING CAPITAL LIMIT
AMOUNT APPLIED FOR Rs. 45,40,000/- AS TERM LOAN
Rs.15,00,000/- AS CC LIMIT
LOAN ASSISTANCE REQUIRED FOR TO PURCHASE CNC VMC MACHINE
TYPE OF INDUSTRY ENGINEERING
ACTIVITY OF INDUSTRY MANUFACTURING
SIZE OF UNIT SMALL
GENERAL INFORMATION
TYPE OF FIRM PARTNERSHIP
PARTNER 1. MR HEMANG CHIREN DOSHI
2. MRS MITTAL KAVIN DOSHI
MOBILE NO. OF KEY PERSON 09825064807 ( MR CHIREN DOSHI)
OFFICE ADDRESS M/S. PRADHAAN ENGINEERING CO,
525-526 QUICK METAL COMPUND, ODHAV,
Ahmedabad – 382415,
Gujarat.
LAND & BUILDING Owned with Parent Company in the name of The
Electroplating and Polishing company
RESIDENCE ADDRESS 1. Mr Hemang chiren Doshi
15, a-2,amrapali apartment, new
sharda road, paldi, ahmedabad-
380007
2. Mrs Kavin Mittal Doshi
a-1-52, shymal row house,
satellite,ahmedabad-380015
LAND & BUILDING OWNED

3. M/s. PARDHAAN ENGINEERING CO
BIO DATA OF Promoters
NAME Mr Hemang chiren Doshi
ADDRESS 15, a-2,amrapali apartment, new
sharda road, paldi, ahmedabad-
380007
AGE 26 years
GENDER MALE
NATIONALITY INDIAN
COMMUNITY OTHER (GENERAL)
QUALIFICATION Post Graduate Diploma from Germany
EXPERIENCE IN BUSINESS 1 years
TENTATIVE INCORPORATION OF THIS UNIT 2015
CONSTITUTION OF THIS UNIT Partnership
EXPERIENCE IN SERVICE NIL
NAME OF PREVIOUS EMPLOYERS NONE
PAN NUMBER ALKPD5930D
PHOTO ID PROOF PAN CARD
RESIDENCE PROOF Light Bill
NAME Mrs Kavin Mittal Doshi
ADDRESS a-1-52, shymal row house, satellite,ahmedabad-
380015
AGE 39 years
GENDER FEMALE
NATIONALITY INDIAN
COMMUNITY OTHER (GENERAL)
QUALIFICATION Graduate

4. M/s. PARDHAAN ENGINEERING CO
EXPERIENCE IN BUSINESS New, just started
TENTATIVE INCORPORATION OF THIS UNIT 2015
CONSTITUTION OF THIS UNIT Partnership
EXPERIENCE IN SERVICE NIL
NAME OF PREVIOUS EMPLOYERS NONE
PAN NUMBER ANBPM1197J
PHOTO ID PROOF PAN CARD
RESIDENCE PROOF Light Bill

5. M/s. PARDHAAN ENGINEERING CO
ABOUT UNIT
NATURE OF ORDERS Job Work and Manufacturing of Domestic
HARDWARE products and other engineering parts
INDUSTRY TYPE Domestic engineering products
TYPE OF BUSINESS Job Work
EXPORT SALES NIL
VARIETY OF PRODUCTS MANUFACTURED Different types of hardware products to be used in
domestic market.
COMPANY PROFILE Hemang Chiren Doshi & Mittal Kavin Doshi has
decided to start the business of Pradhan Engg Co.
Mr Hemang will be handling the business under
guidance of his father Mr Chiren Doshi. He has
been handling business for around 25 years
COST AND MEANS OF FINANCE
COST OF PROJECT AMOUNT IN RS. MEANS OF FINANCE AMOUNT IN RS.
Haas Make CNC VMC
machine
44.10 lacs PROMOTER’S
CONTRIBUTION
15.20 lacs
Accessories 16.50 lacs TERM LOAN 45.40 lacs
TOTAL 60.60 lacs TOTAL 60.60 lacs

6. M/s. PARDHAAN ENGINEERING CO
Security
Primary Security:
Nature / Description
of Security
Market Value
(Rs. in lacs )
Bank’s share
In %
Date of Valuation
& Name
of Valuer
Plant and Machinery 60.60 Lacs
(Invoice Value)
100% Not Required. Basis of the value is
quotations here attached with the
proposal
Collateral Security:
Nature / Description
of Security
Market Value
(Rs. in crore)
Bank’s share
In %
Date of Valuation & Nameof Valuer
whether valuer is on approved list
Registered Mortgage
of, A-2-31, Amrapali
Apartments, Nr New
Sharda Mandir Road,
Paldi, Ahmedabad
Plot/ Survey no F.P.
461/1+462, T.P.No.6,
Mouje- Paldi, City
Ahmedabad
60.00 Lacs
Approx
100% Yet to be done

7. M/s. PARDHAAN ENGINEERING CO
SWOT Analysis
Strengths
1. Support from Existing Parent Unit
2. Partners are new in business but Promoters are Experienced
3. Standard Machine
4. Ready Orders in Hand from Parent company
5. Automization supported by Govt Subsidies and initiatives
Weakness
1. New young inexperienced partners
2. Heavy Investment considering current size of business
Opportunity
1. In house development of products will improve quality and lower the cost for parent company
2. Quality of Products will improve significantly on successful implementation of the project
leading to more business
3. Customer can look into Export for Domestic Hardware business after installing high end
Imported Machine
Threat
1. Products can be copied easily

8. M/s. PARDHAAN ENGINEERING CO
INTEREST PRINCIPAL BIFURCATION
MACHINE PRICE
6059907
MARGIN
1519907
LOAN AMOUNT
4540000
TENURE
60
EMI ON MACHINE
RATE OF INTEREST
11.45%
Sl No. EMI Interest Principal O/S. Principal
1 Mortarium Period 43319
2 43319
3 43319
4 43319
5 43319
6 43319
1 118986 43319 75667 4464333
2 118264 42597 75667 4388667
3 117542 41875 75667 4313000
4 116820 41153 75667 4237333
5 116098 40431 75667 4161667
6 115376 39709 75667 4086000
7 114654 38987 75667 4010333
8 113932 38265 75667 3934667
9 113210 37543 75667 3859000
10 112488 36821 75667 3783333
11 111766 36099 75667 3707667
12 111044 35377 75667 3632000
13 110322 34655 75667 3556333
14 109600 33933 75667 3480667
15 108878 33211 75667 3405000
16 108156 32489 75667 3329333
17 107434 31767 75667 3253667
18 106712 31045 75667 3178000
19 105990 30323 75667 3102333

9. M/s. PARDHAAN ENGINEERING CO
20 105268 29601 75667 3026667
21 104546 28879 75667 2951000
22 103824 28157 75667 2875333
23 103102 27435 75667 2799667
24 102380 26713 75667 2724000
25 101658 25992 75667 2648333
26 100936 25270 75667 2572667
27 100214 24548 75667 2497000
28 99492 23826 75667 2421333
29 98770 23104 75667 2345667
30 98048 22382 75667 2270000
31 97326 21660 75667 2194333
32 96604 20938 75667 2118667
33 95882 20216 75667 2043000
34 95160 19494 75667 1967333
35 94438 18772 75667 1891667
36 93716 18050 75667 1816000
37 92994 17328 75667 1740333
38 92272 16606 75667 1664667
39 91550 15884 75667 1589000
40 90828 15162 75667 1513333
41 90106 14440 75667 1437667
42 89384 13718 75667 1362000
43 88662 12996 75667 1286333
44 87940 12274 75667 1210667
45 87218 11552 75667 1135000
46 86496 10830 75667 1059333
47 85774 10108 75667 983667
48 85052 9386 75667 908000
49 84331 8664 75667 832333
50 83609 7942 75667 756667
51 82887 7220 75667 681000
52 82165 6498 75667 605333
53 81443 5776 75667 529667
54 80721 5054 75667 454000
55 79999 4332 75667 378333
56 79277 3610 75667 302667
57 78555 2888 75667 227000
58 77833 2166 75667 151333
59 77111 1444 75667 75667
60 76389 722 75667 0

10. M/s. PARDHAAN ENGINEERING CO
DSCR And Other important Ratios
Debt Service Coverage Ratio (DSCR)
2016 2017 2018 2019 2020
Net Profit 4.70 7.65 9.10 11.05 13.34
Depreciation 9.08 7.72 6.56 5.58 4.74
Interest Expense 3.03 4.63 3.59 2.55 1.51
Total (A) 16.81 19.99 19.25 19.18 19.59
Interest Expense 3.03 4.63 3.59 2.55 1.51
Principal Repayment 0.75 9.08 9.08 9.08 9.08
Instalment (B) 3.78 13.71 12.67 11.63 10.59
(Principal + Interest)
DSCR (A/B) 4.45 1.46 1.52 1.65 1.85
AVG DSCR 2.18

11. M/s. PARDHAAN ENGINEERING CO
Other important Ratios
FY FY FY FY
Estimated
2016
Estimated
2017
Estimated
2018
Estimated
2019
1 Current Ratio 1.37 1.50 1.65 1.80
2 Debt/Equity Ratio 1.81 1.10 0.64 0.33
3 TOL/TNW Ratio 2.89 2.16 1.56 1.15
4 TOL/TNW Ratio with
unsecured loan as quasi
capital & included in Net
Worth
2.41 1.82 1.34 0.99
5 Gross Profit margin % 28.20 20.78 19.73 19.05
6 Net Profit margin % 11.75 9.56 9.48 9.59
7 FACR
8 Total inventory/Net Sales 0.20 0.13 0.14 0.13
9 Receivables/Gross sales 25.00 25.00 25.00 25.00
Implementation schedule.
Activity Starting Date Completion Date
Purchase of Plant and
Machinery
August 2015 September 2015
Installation September 2015 October 2015
Trail Run October 2015 November 2015
Commercial production December 2015 December 2015

12. M/s. PARDHAAN ENGINEERING CO
Repayment 60 Month
Door to Door Tenor
Zero date
Implementation period
Schedule date of Completion of project
COD
Moratorium
:
:
:
:
:
66 Months
30 August 2015
6 Months
31st August 2015
30th September, 2015
6 Months
Actual Repayment Period : 66 Months
Whether Mthly/Qtrly/HY/Yrly instalment : Monthly
First installment due on
Last installment due on
:
:
28th Feb, 2016
31st Jan, 2021
Loan Availability Period : 66 Months
Terminal Date of disbursement : 30th August, 2015

13. M/s. PARDHAAN ENGINEERING CO
OPERATING STATEMENT
2016 2017 2018 2019 2020
Gross Sale 40.00 80.00 96.00 115.20 138.24
Less Excise Duty 0.00 0.00 0.00 0.00 0.00
Net Sales 40.00 80.00 96.00 115.20 138.24
Cost of Sales - - - - -
Raw Materials - - - - -
-Imported 0.00 0.00 0.00 0.00 0.00
-Indigenous 24.00 48.00 61.44 74.88 91.24
Other Spares 0.00 0.00 0.00 0.00 0.00
Power & Fuel 0.50 1.36 1.56 1.79 2.06
Direct Labour 3.00 8.00 10.00 12.00 14.00
Repairs & Main. 0.00 0.00 0.00 0.00 0.00
Other Mfg.Exp. 0.14 0.30 0.50 1.00 2.00
Depreciation 9.08 7.72 6.56 5.58 4.74
Sub Total 36.72 65.37 80.06 95.25 114.04
Add: Opening SIP 0.00 8.00 10.00 13.00 15.00
Deduct: Closing SIP 8.00 10.00 13.00 15.00 16.00
Sub Total 28.72 63.37 77.06 93.25 113.04
Add: Opening FGs 0.00 0.00 0.00 0.00 0.00
Deduct: Closing FGs 0.00 0.00 0.00 0.00 0.00
(Cost of Sales) 28.72 63.37 77.06 93.25 113.04
Gross Profit (3 – 4) 11.28 16.63 18.94 21.95 25.20
Interest 4.38 5.98 4.94 3.90 2.86
Selling, General & admn. exp
2.20 3.00 4.90 7.00 9.00
Operating Profit 4.70 7.65 9.10 11.05 13.34
Other Income/Exp. - - - - -
Add Income 0.00 0.00 0.00 0.00 0.00
Deduct exp. 0.00 0.00 0.00 0.00 0.00
Sub Total ( - ) ( + ) 0.00 0.00 0.00 0.00 0.00
Profit before tax 4.70 7.65 9.10 11.05 13.34
Less provision for tax 0.00 0.00 0.00 0.00 0.00
Net Profit / Loss 4.70 7.65 9.10 11.05 13.34
Dividend Paid / Payable 0.00 0.00 0.00 0.00 0.00

14. M/s. PARDHAAN ENGINEERING CO
Cash Flow Analysis
(Rs. In Lacs)
FY FY FY FY
Estimated
2016
Estimated
2017
Estimated
2018
Estimated
2019
1 Paid-Up Capital 24.70 32.35 41.44 52.49
2 Reserves & Surplus 0.00 0.00 0.00 0.00
3 Intangible Assets 0.00 0.00 0.00 0.00
4 Tangible Net Worth 24.70 32.35 41.44 52.49
5 Adjusted TNW(4+7-10) 24.70 32.35 41.44 52.49
6 Long term Liabilities 40.56 32.48 24.40 16.32
7 Unsecured loans from
Promoters / family included
under (5)
5.00 6.00 7.00 8.00
8 Capital Employed(4)+(6) 65.26 64.83 65.84 68.81
9 Net Block 53.81 46.09 39.53 33.96
10 Investments 0.00 0.00 0.00 0.00
11 Non-Current Assets 0.00 0.00 0.00 0.00
12 Current Assets 42.33 56.01 66.65 78.66
13 Current Liabilities 30.88 37.28 40.34 43.80
14 NWC 11.45 18.73 26.31 34.86
15 Net Sales 40.00 80.00 96.00 115.20
Domestic 40.00 80.00 96.00 115.20
Export 0.00 0.00 0.00 0.00
% growth 0.04 1.00 0.20 0.20
16 Gross Profit 11.28 16.63 18.94 21.95
17 Net Profit Before Tax 4.70 7.65 9.10 11.05

15. M/s. PARDHAAN ENGINEERING CO
18 Net Profit After Tax 4.70 7.65 9.10 11.05
19 Depreciation 9.08 7.72 6.56 5.58
20 Cash Accruals 13.78 15.36 15.66 16.63
21 Long Term sources (8) 65.26 64.83 65.84 68.81
22 Long Term uses (9+10+11) 53.81 46.09 39.53 33.96
23 Surplus/Deficit 11.45 18.73 26.31 34.86