The document provides cost details for a water purification project. It estimates the total cost of the project to be Rs. 2,350,000 which includes block capital costs of Rs. 2,050,000 and working capital requirements of Rs. 300,000. It then outlines schedules for loan repayment, depreciation, projected profitability and the projected balance sheet over a 7 year period. The key financial projections show annual net profits increasing from Rs. 0.88 lakhs in year 1 to Rs. 7.02 lakhs in year 7.

1. COST OF THE PROJECT :
Sl. No. P A R T I C U L A R S ( RS.) Amount (Rs. In lacs)
(A) BLOCK CAPITAL :
(a) Developed Land -
A0.10 dec. area of dev. land taken at Ichhapur ( Barik
Chhak), Bhadrak.
(b) Factory Building with RCC proof 1000Sqft. 350,000.00
Including overhead tank of 4000 ltr capacity
(c) Plant & Machinery :
.i.) includes: Feed water pump,one pressure sand filter, 1,250,000.00
open acti. Carbon filter, Dosing pump,catridge filter,
R.O.pump,R.O.Memberence,Post treatment micron
filter & ultra violet purifier
.ii) Pouch filling Machine (Cap of 250 ml) 210,000.00
.iii) Deep borrowell 50,000.00
1,510,000.00
Tax & Irrection Exp 38,000.00
1,548,000.00
(D) Electrical Installation & others 152,000.00
Total Block Capital 2,050,000.00
102500
(B) WORKING CAPITAL REQUIREMENT SCHEDULE : ( RS .)
1) Closing Stock
a) Raw Material & Consumables : 15 days. 120,000.00
b) Finished Product. : 7 days. 90,000.00
2) Sundry Debtors: 7 days 90,000.00
TOTAL 300,000.00
Cost of the Project (A + B) 2,350,000.00
Means Of Finance
Promoter's Bank Finance TOTAL
Contribution
1. Block Capital 1,03,000/- 1,947,000.00 2,050,000.00
2. Working Capital 15,000/- 285,000.00 300,000.00
Toatal 1,18,000/- 2,232,000.00 2,350,000.00

2. Bank int. 110000
electr & others 42000
152000
329220
109740

3. INTEREST AND REPAYMENT SCHEDULE OF TERM LOAN : (Rs. In Lakhs)
Year Instalment Op. Bal. Repayment Cl. Bal Interest
(Quartely) of of of
Term Loan Term Loan Term Loan @ 14.75 %
1st 1st 19.47 0.70 18.77 0.72
2nd 18.77 0.70 18.08 0.69
3rd 18.08 0.70 17.38 0.67
4th 17.38 0.70 16.69 0.64
Total 2.78 2.72
2nd 1st 16.69 0.70 15.99 0.62
2nd 15.99 0.70 15.30 0.59
3rd 15.30 0.70 14.60 0.56
4th 14.60 0.70 13.91 0.54
2.78 2.31
3rd 1st 13.91 0.70 13.21 0.51
2nd 13.21 0.70 12.52 0.49
3rd 12.52 0.70 11.82 0.46
4th 11.82 0.70 11.13 0.44
2.78 1.90
4th 1st 11.13 0.70 10.43 0.41
2nd 10.43 0.70 9.73 0.38
3rd 9.73 0.70 9.04 0.36
4th 9.04 0.70 8.34 0.33
2.78 1.49
5th 1st 8.34 0.70 7.65 0.31
2nd 7.65 0.70 6.95 0.28
3rd 6.95 0.70 6.26 0.26
4th 6.26 0.70 5.56 0.23
2.78 1.08
6th 1st 5.56 0.70 4.87 0.21
2nd 4.87 0.70 4.17 0.18
3rd 4.17 0.70 3.48 0.15
4th 3.48 0.70 2.78 0.13
2.78 0.67
7th 1st 2.78 0.70 2.09 0.10
2nd 2.09 0.70 1.39 0.08
3rd 1.39 0.70 0.70 0.05
4th 0.70 0.70 0.00 0.03
2.78 0.26

4. 3.69
69535.71

5. DEPRECIATION SCHEDULE : (Rs. In Lakhs)
Period Factory Building Plant & Machinery Elect. installation T O T A L
Land @ 10 % @ 20 % & others @ 15%
1st Cost 3.50 15.48 1.52 20.50
Depn. 0.35 3.10 0.23 3.67
Cl.Bal. 0.00 3.15 12.38 1.29 16.83
2nd Cost 3.15 12.38 1.29 16.83
Depn. 0.32 2.48 0.19 2.99
Cl.Bal. 0.00 2.84 9.91 1.10 13.84
3rd Cost 2.84 9.91 1.10 13.84
Depn. 0.28 1.98 0.16 2.43
Cl.Bal. 0.00 2.55 7.93 0.93 11.41
4th Cost 2.55 7.93 0.93 11.41
Depn. 0.26 1.59 0.14 1.98
Cl.Bal. 2.30 6.34 0.79 9.43
5th Cost 2.30 6.34 0.79 9.43
Depn. 0.23 1.27 0.12 1.62
Cl.Bal. 0.00 2.07 5.07 0.67 7.81
6th Cost 2.07 5.07 0.67 7.81
Depn. 0.21 1.01 0.10 1.32
Cl.Bal. 0.00 1.86 4.06 0.57 6.49
7th Cost 1.86 4.06 0.57 6.49
Depn. 0.19 0.81 0.09 1.08
Cl.Bal. 0.00 1.67 3.25 0.49 5.41
Contd……….14………..

6. PROJECTED PROFITABLITY STATEMENT : ( Rs. In Lakhs.)
Sl. Description (Years) 1st 2nd 3rd 4th 5th 6th 7th
Capacity Utylisation 60% 70% 80% 80% 80% 80% 80%
A. INCOME :
Sales 43.20 50.40 57.60 63.36 69.70 76.67 84.33
Closing Stock :
Raw Materials 1.20 1.40 1.60 1.60 1.60 1.60 1.60
Finished Goods 0.90 1.05 1.20 1.20 1.20 1.20 1.20
TOTAL 45.30 52.85 60.40 66.16 72.50 79.47 87.13
B. EXPENDITURE :
Opening Stock :
C. Materials 1.20 1.40 1.60 1.60 1.60 1.60
Finished Goods 0.90 1.05 1.20 1.20 1.20 1.20
Exp.for Closing Stock 2.10 0.35 0.35 0.00 0.00 0.00 0.00
Container Exp. 26.88 31.36 35.84 39.42 43.37 47.70 52.47
Consumables 4.20 4.90 5.60 6.16 6.78 7.45 8.20
Electricity Charges 0.48 0.56 0.64 0.77 0.92 1.11 1.33
Salary & wages 2.40 2.88 3.46 4.15 4.98 5.97 7.17
Repair & maintanance 0.20 0.26 0.34 0.44 0.57 0.74 0.97
Advertisement Exp. 0.50 0.58 0.66 0.76 0.87 1.01 1.16
Travelling & Conveyance 0.10 0.12 0.14 0.17 0.21 0.25 0.30
Office administrative Exp. 0.15 0.18 0.22 0.26 0.31 0.37 0.45
Packing & forwarding 0.10 0.12 0.14 0.17 0.21 0.25 0.30
Miscellaneous Expenditure 0.10 0.12 0.13 0.15 0.16 0.18 0.19
Interest on Term Loan 2.72 2.31 1.90 1.49 1.08 0.67 0.26
-- Cash Credit 0.44 0.44 0.44 0.44 0.44 0.44 0.44
Depreciation on Fixed Assets 3.67 2.99 2.43 1.98 1.62 1.32 1.08
TOTAL 44.04 49.26 54.74 59.16 64.31 70.26 77.11
C. Net Profit (A - B ) 1.26 3.59 5.66 7.00 8.19 9.20 10.02
D. Provision for I.Tax @ 30% 0.38 1.08 1.70 2.10 2.46 2.76 3.01
E. Profit after Tax 0.88 2.51 3.96 4.90 5.73 6.44 7.02
F. Net Available Surplus
( E + Depn. ) 4.55 5.50 6.39 6.88 7.35 7.77 8.10
Contd ……………11…

7. PROJECTED BALANCE SHEET ( Rs. In Lakhs.)
========================
SL DESCRIPTION (years) 1ST 2ND 3RD 4TH 5TH 6TH 7TH
Capacity Utilisation 60% 70% 80% 80% 80% 80% 80%
A. LIABILITIES:
CAPITAL ACCOUNT:
Capital Account B/F 1.18 2.06 4.57 8.53 13.43 19.16 25.61
Add : Profit for the Year 0.88 2.51 3.96 4.90 5.73 6.44 7.02
2.06 4.57 8.53 13.43 19.16 25.61 32.62
SECURED LOAN :
Term Loan 16.69 13.91 11.13 8.34 5.56 2.78 0.00
Cash Credit 3.00 3.00 3.00 3.00 3.00 3.00 3.00
CURRENT LIABILITIES :
Other Liabilities 0.20 0.20 0.20 0.20 0.20 0.20 0.20
Provision for I.tax 0.38 1.08 1.70 2.10 2.46 2.76 3.01
TOTAL 22.33 22.76 24.56 27.08 30.38 34.35 38.83
B. ASSETS:
FIXED ASSETS:
(Depn. Schedule) 16.83 13.84 11.41 9.43 7.81 6.49 5.41
Security Deposit with
Govt. Deptts. 0.70 0.70 0.70 0.70 0.70 0.70 0.70
CURRENT ASSETS :
Closing Stock 2.10 2.45 2.80 2.80 2.80 2.80 2.80
Sundry Debtors 0.85 1.05 1.20 1.32 1.45 1.60 1.76
Cash & Bank 1.85 4.72 8.45 12.83 17.62 22.77 28.16
TOTAL 22.33 22.76 24.56 27.08 30.38 34.35 38.83

8. CASH FLOW STATEMENT ( Rs. In Lakhs.)
SL DESCRIPTION Project Yr. 1ST 2ND 3RD 4TH 5TH 6TH 7TH
A. SOURCES
(a) Profit after Tax 0.88 2.51 3.96 4.90 5.73 6.44 7.02
(b) Depreciation 3.67 2.99 2.43 1.98 1.62 1.32 1.08
(c) Int.on loan 3.16 2.75 2.34 1.93 1.52 1.11 0.70
(d) Bank Finance 22.32 3.00 - - - - - -
(e) Promoter's Contr. 1.18 - - - - - - -
(e) Increase of C.liab. - 0.58 0.70 0.62 0.40 0.36 0.31 0.25
TOTAL 23.50 11.29 8.95 9.35 9.21 9.22 9.18 9.04
B. USES:
(a) Capital Expenditure 23.50
(b) Deposits -
(b) Dec. on Loan 2.78 2.78 2.78 2.78 2.78 2.78 2.78
(c) Int. on Loan 3.16 2.75 2.34 1.93 1.52 1.11 0.70
(e) Increase of
current Assets 3.50 0.55 0.50 0.12 0.13 0.15 0.16
TOTAL 23.50 9.44 6.08 5.62 4.83 4.43 4.03 3.64
C. Opening Balance ---- ---- 1.85 4.72 8.45 12.83 17.62 22.77
D. Surplus ---- 1.85 2.87 3.73 4.38 4.79 5.15 5.41
E. Closing Balance ---- 1.85 4.72 8.45 12.83 17.62 22.77 28.17

9. DEBT SERVICE COVERAGE RATIO (DSCR) :
================================= ( Rs. In Lakhs.)
Year Available Interest on Total Loan Total DSCR
Surplus Loan ( 1 + 2) Instalement (2+4) (3/5)
1 2 3 4 5 6
1st 4.55 2.72 7.27 2.78 5.50 1.32
2nd 5.50 2.31 7.81 2.78 5.09 1.53
3rd 6.39 1.90 8.29 2.78 4.68 1.77
4th 6.88 1.49 8.37 2.78 4.27 1.96
5th 7.35 1.08 8.43 2.78 3.86 2.18
6th 7.77 0.67 8.43 2.78 3.45 2.45
7th 8.10 0.26 8.36 2.78 3.04 2.75
TOTAL 46.54 10.41 56.95 19.47 29.88 1.91
Available Surplus + Interest 56.95
D.S.C.R. = ----------------------------------------- = ------------- = 1.91
T. L. Instalement + Interest 29.88
DEBT EQUITY RATIO:
================
Total Debt 16.69
Debt Equity Ratio == ------------------- = ------------ = 1.16 : 1
Capital 2.06

10. BREAK EVEN ANALYSIS (Rs.in Lakhs)
(At 60% Capacity)
A. Variable Expenses :
1. Raw Material 26.88
2. Consumables 4.20
3. Electric Charges 0.36
4. Salary & Wages 2.22
5. Repair & maint. 0.15
6. Material Handling Exp.. 0.50
7. Misc. Expenses 0.65
34.96
B. Fixed Expenses
1. Salary 0.18
2. Electricity charges 0.12
3. Misc. Expenses 0.10
4. Repair & Maintan. 0.05
5. Depreciation 3.67
6. Interest on Loan 2.72
6.84
C. Net Sales 43.20
D. Contribution (C-A) 8.24
Break Even Point : B/D = 4.15/8.24*100 50%
(at 60% Capacity utilisation)
BEP at 100% capacity utilisation 50/100*60 = 30%
Break even sales = (43.20/60*100)*30% = 21.60
************

11. INTERNAL RATE OF RETURN:
======================== ( Rs. In Lakhs.)
Year Net Available Interest on Net cash Disc. Factor NPV at Disc. Factor NPV at
Surplus Loan inflow at 13% 13% at 20% 20%
1 2 3 4 5 6 7
1st 4.55 2.72 7.27 0.88 6.43 0.83 6.06
2nd 5.50 2.31 7.81 0.78 6.11 0.69 5.42
3rd 6.39 1.90 8.29 0.69 5.73 0.57 4.72
4th 6.88 1.49 8.37 0.61 5.14 0.48 4.02
5th 7.35 1.08 8.43 0.54 4.57 0.40 3.37
6th 7.77 0.67 8.43 0.48 4.06 0.33 2.78
7th 8.10 0.26 8.36 0.43 3.56 0.27 2.26
35.61 28.63
Total NPV 35.61 28.63
Less Initial Invstment 7.50 7.50
Net Return 28.11 21.13
28.11
IRR == 13% + (20%-13%) ---------------- = 40%
6.98
Present value of inflow 35.61
Profitablity Index == -------------------------------- == -------- == 4.75
Present value of outflow 7.50