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project report on business proposal

The document discusses setting up an artificial football ground business in Pune, India. It outlines the vision, business profile, costs, revenues and expenses involved. The total cost of investment is estimated at Rs. 911,000, with 70% financed through a bank loan of Rs. 637,000. Revenue is projected to increase annually from Rs. 2.52 crores in year 1 to Rs. 3.91 crores in year 5. Expenses are also projected to increase each year in line with revenue growth and inflation. Detailed calculations are provided for the bank loan interest and installment amounts over the 4 year repayment period.

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1 INTRODUCTION
2 Football is the most common sport in the world. It is known and in every part of the world. Even in India, it is hugely popular and is played by a huge number of people. But in recent times, due to urbanization, there are not many grounds or parks left for the people to play, which is where the artificial grounds come in. These type of grounds are already available in pune itself, but are less in number. But the popularity of these grounds is high and the demand for it is as well. They charge the people on per hour basis and usually charge Rs. 1000 – 2000 per hour. These grounds are smaller in size than actual football grounds and are usually meant for playing with five or six players per team. The grass used in these type of grounds is artificial which is made of polyethylene or polyester .
3 VISION  To provide good quality turf for playing.  To create a good environment for playing.  To price reasonably  To ensure high standards of service and hygiene at all times.  To make it an enjoyable experience.  To have tournaments to boost awareness about the business.
4 BUSINESS PROFILE
5 ABOUT THE BUSINESS Pro football is a business which deals in renting grounds on per hour basis. Its aim is to satisfy customers need and to provide service at affordable rates. It aims at providing things with quality and hygiene. ESTABLISHMENT YEAR The business will be established in 2014 and start its operation by august 2014. LOCATION Pro football will be located in hadapsar, Pune STAFF OF THE BUSINESS POST NO. OF WORKER Entrepreneur 1 Skilled labour 1 unskilled labour 2 CUSTOMERS OF THE BUSINESS Customers or target population will be the youth and other common people.
6 SUPPLIERS FOR THE BUSINESS GPgrass for synthetic grass Wanze for HDPE nets (side netting) The rest items can be bought from retailers locally.
7 RESEARCH METHODOLOGY
8 DATA COLLECTION The term data means group of information that represent the qualitative or quantitative attributes of a variable or set of variables. Data collection is a term used to describe a process of preparing and collecting data, for example, as part of process improvement or similar project. The purpose of data collection is to obtain information to keep on record, to make decisions about important issues, to pass information to others. The information for this project has been collected mainly through secondary sources:- PRIMARY DATA: The information for this project has been collected through primary and secondary sources. In primary data collection, the information and data has been collected through questions raised to the other ground employees. The loan procedure has been collected by asking questions to the bank. SECONDARY DATA: The secondary data were collected from the brochure of the bank, the boards with the information displayed in the bank premises and, from the bank website. The ground’s information has been collected from web sites (www.hotfut.in) for specifications and google for data about equipments ie. price, requirements, etc.
9 LOAN PROPOSAL Detailed report (based on the potential borrowers, loan application and credit worthiness), presented usually by a banks officer (with his or her comments) to a senior loan officer or the bank loan committee. HOW TO MAKE A LOAN PROPOSAL STEP-1 Submit a cover letter with your proposal. This should be a brief introduction of your business, the size of the loan requested and the purpose of the loan. STEP-2 Begin your proposal with general information, including the business’ name and address, names and social security number of the principals, the purpose of the loan, the exact amount of money needed and detailed plans for what will be done with money. STEP-3 Describe your business in detail. Include information on prior and projected performance, unique aspects of your business and the legal and ownership structures. STEP-4 Provide complete market information. Identify your competition and explain how your business stacks up. Submit details on your current customer base.
10 STEP-5 Prepare management profiles for all owners and key employees. Highlight their education, past accomplishments and qualifications. STEP-6 Submit complete information concerning your last 5years of operation. If you’re just starting out, provide projected balance sheets and income statements. Also include personal financial statements from all the owners and information on any collateral that will be placed as security for the loan. STEP-7 Proofread the document, double checking spelling, grammar and the facts contained in the proposal. STEP-8 Submit your proposal with each copy of the loan package your required to return. Remember to keep a copy for yourself. DOCUMENTS REQUIRED FOR BUSINESS PROPOSAL  Submit shop act license.  Submit 3 years estimated balance sheet.  3 years income tax challan.  Submit KYC (Know your Customer) documents- ration card, election card, photo, PAN card, light bill.  Person must be a shareholder of any company. Submit property guarantee (house valuation, tax receipt)
FINANCIAL STATEMENT ANALYSIS 11
12 COST OF INVESTMENT Sr. No. Particulars amount amount 1 Equipment cost Artificial grass (2 x 502 sq.mts at 378 per sq.mt) Side netting (2 x 1672 sq.mts at 37.8 per sq.mt) Halogen lights (12 lights x at 1200 each) Goal posts (4 x 900 each) Footballs (10 x 500 each) Concrete poles (for lights) (12 x 379512 126403 14400 3600 5000 3 Registration charges 6000 4 Deposit 500000 Total cost of the project 911000
13 FINANCIAL DETAILS OF THE PROJECT Sr. No. PARTICULAR AMOUNT A BANK FINANCE (70%) 637000 B OWN CONTRIBUTION (30%) 274000 TOTAL COST OF THE PROJECT 911000 FINANCIAL DETAILS OF THE PROJECT OWN CAPITAL 30% BANK LOAN 70%
14 REVANUE FOR THE PROJECTED YEARS PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 a) Revenue from retail sales 720000 782712 869496 976176 1103940 b) Revenue from distribution 1800000 1963008 2185320 2465844 2804808 Total Revenue 2520000 2745720 3054816 3442020 3908748 4000000 Index:- 3500000 3000000 2500000 2000000 1500000 1000000 500000 0 720000 782712 869496 976176 1103940 year 1 A= Revenue from counter sales B= Revenue from distribution year 2 year 3 year 4 year 5 1800000 1963008 2185320 2465844 2804808 A B
15 REVENUE SCHEDULE Statement –A Showing revenue from retail sales for one month Particulars 1st Year % Increase in 2nd Year % Increase in 3rd Year % Increase in 4th Year % Increase in 5th Year Birth day cakes 14400 9 12 13 14 Fresh cream cakes 16200 8 10 11 12 Plum cake 10500 10 13 14 15 Butter cake 6300 8 10 11 11 Fruit cake 5400 8 9.5 11 11 Pastries 7200 9 11 13 14 Total 60000 8.71 11.09 12.27 13.09 Statement –B Showing revenue from distribution for one month Particulars 1st Year % Increase in 2nd Year % Increase in 3rd Year % Increase in 4th Year % Increase in 5th Year Birth day cakes 32400 10 13 14 15 Fresh cream cakes 25200 9 10 11 12 Plum cakes 36000 9 13 15 15 Butter cakes 23100 8 9 10.5 12 Fruit cakes 17100 8 9 10.5 12 Pastries 16200 10 12 14 15 Total 150000 9.05 11.33 12.84 13.5 Total Revenue for the Project= (Statement A + Statement B)*12
16 EXPENDITURE FOR ONE MONTH Sr. no. Particular No. Rate Amount 1 Salaries Entrepreneur Skilled labour Unskilled labour Driver 1 1 2 1 25000 10000 5500 5500 25000 10000 11000 5500 2 Utilities Electricity Fuel Water charges 1600 8400 1000 3 Raw material 80000 4 Distribution 3000 5 Packing charges 6000 6 Rent 15000 7 Telephone expenses 500 8 Repairs & maintenance 500 9 Insurance 500 10 Sundry expenses 500 11 Stationary expenses 500 12 Accountant fees 500 Total 169500
17 TOTAL AMOUNT OF EXPENDITURE FOR PROJECTED PERIOD Particular 1st Year 2nd Year 3rd Year 4th Year 5th Year Raw Material 960000 1056000 1161600 1300992 1431091 Electricity Expenses 19200 19968 20767 21805 22895 Fuel 100800 110880 121968 136604 150265 Water 12000 12360 12731 13240 13902 Wages & Salary 618000 618000 679800 679800 747780 Distribution 36000 39600 43560 48787 54642 Packaging 72000 79200 87120 97574 107331 Telephone Expenses 6000 6180 6365 6620 6884 Repairs & Maintenance 6000 6240 6490 6814 7155 Insurance 6000 6000 6000 6540 6540 Sundry Exp 6000 6240 6552 7011 7572 Stationary 6000 6600 7260 8131 8863 Auditors Fee 6000 6000 6000 6600 6600 Rent 180000 180000 180000 198000 198000 Total 2034000 2153268 2346213 2538518 2769520
18 3000000 2500000 2000000 1500000 1000000 500000 0 EXPENSES year 1 year 2 year 3 year 4 year 5 expenses
19 PERCENTAGE INCREASE IN EXPENDITURE Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Raw Material Nil 10% 10% 12% 10% Electricity Expenses Nil 4% 4% 5% 5% Fuel Nil 10% 10% 12% 10% Water Nil 3% 3% 4% 5% Wages and Salary Nil 0% 10% 0% 10% Distribution Expenses Nil 10% 10% 12% 12% Packaging Expenses Nil 10% 10% 12% 10% Telephone Expenses Nil 3% 3% 4% 4% Repairs and Maintenance Nil 4% 4% 5% 5% Insurance Nil 0% 0% 9% 0% Sundry expenses Nil 4% 5% 7% 8% Stationary Nil 10% 10% 12% 9% Auditors fees Nil 0% 0% 10% 0% Rent Nil 0% 0% 10% 0%
CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN 20 FOR 1ST YEAR Month Opening balance EMI Amount Interest Amount Principal Reduction Balance Due 1. 637000 14822 7432 7390 629610 2. 629610 14822 7346 7476 622134 3. 622134 14822 7258 7564 614570 4. 614570 14822 7170 7652 606918 5. 606918 14822 7081 7741 599177 6. 599177 14822 6991 7831 591346 7. 591346 14822 6899 7923 583423 8. 583423 14822 6807 8015 575408 9. 575408 14822 6713 8109 567299 10. 567299 14822 6618 8204 559095 11. 559095 14822 6523 8299 550796 12. 550796 14822 6426 8396 542400 Total 83264 94600
21 CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN 2ND YEAR Month Opening balance EMI Amount Interest Amount Principal Reduction Balance Due 1. 542400 14822 6328 8494 533906 2. 533906 14822 6229 8593 525313 3. 525313 14822 6129 8693 516620 4. 516620 14822 6027 8795 507825 5. 507825 14822 5925 8897 498928 6. 498928 14822 5821 9001 489927 7. 489927 14822 5716 9106 480821 8. 480821 14822 5610 9212 471609 9. 471609 14822 5502 9320 462289 10. 462289 14822 5393 9429 452860 11. 452860 14822 5283 9539 443321 12. 443321 14822 5172 9650 433671 Total 69135 108729
CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN 22 3RD YEAR Month Opening balance EMI Amount Interest Amount Principal Reduction Balance Due 1. 433671 14822 5060 9762 423909 2. 423909 14822 4946 9876 414033 3. 414033 14822 4831 9991 404042 4. 404042 14822 4714 10108 393934 5. 393934 14822 4596 10226 383708 6. 383708 14822 4477 10345 373363 7. 373363 14822 4356 10466 362897 8. 362897 14822 4234 10588 352309 9. 352309 14822 4110 10712 341597 10. 341597 14822 3985 10837 330760 11. 330760 14822 3859 10963 319797 12. 319797 14822 3731 11091 308706 Total 52899 124965
23 CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN 4TH YEAR Month Opening balance EMI Amount Interest Amount Principal Reduction Balance Due 1. 308706 14822 3602 11220 297486 2. 297486 14822 3471 11351 286135 3. 286135 14822 3338 11484 274651 4. 274651 14822 3204 11618 263033 5. 263033 14822 3069 11753 251280 6. 251280 14822 2932 11890 239390 7. 239390 14822 2793 12029 227361 8. 227361 14822 2653 12169 215192 9. 215192 14822 2511 12311 202881 10. 202881 14822 2367 12455 190426 11. 190426 14822 2222 12600 177826 12. 177826 14822 2075 12747 165079 Total 34237 143627
CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN 24 5TH YEAR Month Opening balance EMI Amount Interest Amount Principal Reduction Balance Due 1. 165079 14822 1926 12896 152183 2. 152183 14822 1775 13047 139136 3. 139136 14822 1623 13199 125937 4. 125937 14822 1469 13353 112584 5. 112584 14822 1314 13508 99076 6. 99076 14822 1156 13666 85410 7. 85410 14822 997 13825 71585 8. 71585 14822 835 13987 57598 9. 57598 14822 672 14150 43448 10. 43448 14822 507 14315 29133 11. 29133 14822 340 14482 14651 12. 14651 14822 171 14651 0 Total 12785 165079
25 SCHEDULE FOR DEPRECIATION 1- Depreciation on Oven Year Opening balance Depreciation amount @ 10% Closing balance 1 100000 10000 90000 2 90000 9000 81000 3 81000 8100 72900 4 72900 7290 65610 5 65610 6561 59049 2- Depreciation on Mixer Year Opening balance Depreciation amount @ 10% Closing balance 1 50000 5000 45000 2 45000 4500 40500 3 40500 4050 36450 4 36450 3645 32805 5 32805 3280 29525 3- Depreciation on Refrigerator Year Opening balance Depreciation amount @ 10% Closing balance 1 40000 4000 36000 2 36000 3600 32400 3 32400 3240 29160 4 29160 2916 26244 5 26244 2624 23620 4- Depreciation on Motor Vehicle Year opening balance Depreciation amount @ 10% Closing balance 1 190000 19000 171000 2 171000 17100 153900 3 153900 15390 138510 4 138510 13851 124659 5 124659 12466 112193
26 5- Depreciation on Furniture Year Opening balance Depreciation amount @ 10% Closing balance 1 100000 10000 90000 2 90000 9000 81000 3 81000 8100 72900 4 72900 7290 65610 5 65610 6561 59049 6- Depreciation on Weighing scale Year Opening balance Depreciation amount @ 10% Closing balance 1 10000 1000 9000 2 9000 900 8100 3 8100 810 7290 4 7290 729 6561 5 6561 656 5905 7- Depreciation on Fire extinguisher Year Opening balance Depreciation amount @ 10% Closing balance 1 1100 110 990 2 990 99 810 3 810 81 729 4 729 73 656 5 656 65 591 8- Depreciation on Inverter Year Opening balance Depreciation amount @ 10% Closing balance 1 20000 2000 18000 2 18000 1800 16200 3 16200 1620 14580 4 14580 1458 13122 5 13122 1312 11810
27 9- Depreciation on trays Year Opening balance Depreciation amount @ 10% Closing balance 1 60000 6000 54000 2 54000 5400 48600 3 48600 4860 43366 4 43366 4374 39366 5 39366 3936 35430 10- Depreciation on Electricity Fitting Year Opening balance Depreciation amount @ 10% Closing balance 1 22000 2200 19800 2 19800 1980 17820 3 17820 1782 16038 4 16038 1604 14434 5 14434 1443 12991 11- Depreciation on Utensils Year Opening balance Depreciation amount @ 10% Closing balance 1 40000 4000 36000 2 36000 3600 32400 3 32400 3240 29160 4 29160 2916 26244 5 26244 2624 23620 12- Other equipments Year Opening balance Depreciation amount @ 10% Closing balance 1 2400 240 2160 2 2160 216 1944 3 1944 194 1750 4 1750 175 1575 5 1575 157 1418
28 700000 600000 500000 400000 300000 200000 100000 0 FIXED ASSETS AND DEPRECIATION year 1 year 2 year 3 year 4 year 5 Fixed Assets F.A.After depriciation Total depriciation
29 INCOME STATEMENT PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 REVENUE FROM PROJECT 2520000 2745720 3054816 3442020 3908748 LESS: EXPENCE OF PROJECT 2034000 2153268 2346213 2538518 2769520 PROFIT BEFORE INTREST DEPRICIATION AND TAX 2034000 2153268 2346213 2538518 2769520 LESS:INTREST 83264 69135 52899 34237 12785 LESS:DEPRICIATION 63550 57195 51475 46328 41695 LESS: REGISTRATION 1200 1200 1200 1200 1200 PROFIT BEFORE TAX 337986 464922 603029 821737 1083548 LESS: TAX (30%) 101396 139477 180909 246521 325064 NET PROFIT 236590 325445 422120 575216 758484
30 NET PROFIT net profit 800000 700000 600000 500000 400000 300000 200000 100000 0 year 1 year 2 year 3 year 4 year 5 net profit
31 CASH FLOW STATEMENT PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 CASH INFLOW OPENING BALANCE NIL 376240 651351 1001181 1480298 REVENUE 2520000 2745720 3054816 3442020 3908748 OWN CAPITAL 274000 NIL NIL NIL NIL BANK LOAN 637000 NIL NIL NIL NIL TOTAL 3431000 3121960 3706167 4443201 5389046 CASH OUTFLOW FIXED ASSETS 635500 ----- ----- ----- ----- DEPOSIT 100000 ----- ----- ----- ----- REG. CHARGES 6000 ----- ----- ----- ----- WORKING CAPITAL 2034000 2153268 2346213 2538518 2769520 INSTALLMENT 177864 177864 177864 177864 177864 TAX PAID 101396 139477 180909 246521 325064 TOTAL 3054760 2470609 2704986 2962903 3272448 CLOSING BALANCE 376240 651351 1001181 1480298 2116598
32 376240 CASH IN HAND 651351 Cash in hand 1001181 1480298 2116598 2500000 2000000 1500000 1000000 500000 0 year 1 year 2 year 3 year 4 year 5
33 TRADING ACCOUNT FOR THE 1ST YEAR Particulars Amount Particulars Amount To Raw material 960000 By sales 2520000 To Electricity 19200 To Fuel 100800 To Water charges 12000 To Gross profit c/d 1428000 Total 2520000 Total 2520000 PROFIT AND LOSS ACCOUNT FOR THE 1ST YEAR Particulars Amount Particulars Amount To Salary 618000 By gross profit b/d 1428000 To Distribution expenses 36000 To Packing expenses 72000 To Telephone expenses 6000 To Repairs & maintenance 6000 To Insurance 6000 To Sundry expenses 6000 To Stationary 6000 To Auditors 6000 To Rent 180000 To Depreciation 63550 To Reg. charges 1200 To Interest 83264 To Tax paid 101396 To Net profit 236590 Total 1428000 Total 1428000
34 TRADING ACCOUNT FOR THE 2ND YEAR Particulars Amount Particulars Amount To Raw material 1056000 By sales 2745720 To Electricity 19968 To Fuel 110880 To Water charges 12360 To Gross profit c/d 1546512 Total 2745720 Total 2745720 PROFIT AND LOSS ACCOUNT FOR THE 2ND YEAR Particulars Amount particulars Amount To Salary 618000 By Gross profit b/d 1546512 To Distribution expenses 39600 To Packing expenses 79200 To Telephone expenses 6180 To Repairs & maintenance 6240 To Insurance 6000 To Sundry expenses 6240 To Stationary 6600 To Auditors 6000 To Rent 180000 To Depreciation 57195 To Reg. charges 1200 To Interest 69135 To Tax paid 139477 To Net profit 325445 Total 1546512 Total 1546512
35 TRADING ACCOUNT FOR THE 3RD YEAR Particulars Amount particulars Amount To Raw material 1161600 By sales 3054816 To Electricity 20767 To Fuel 121968 To Water charges 12731 1737750 To Gross profit c/d Total 3054816 Total 3054816 PROFIT AND LOSS ACCOUNT FOR THE 3RD YEAR Particulars Amount particulars Amount To Salary 679800 By Gross profit b/d 1737750 To Distribution expenses 43560 To Packing expenses 87120 To Telephone expenses 6365 To Repairs & maintenance 6490 To Insurance 6000 To Sundry expenses 6552 To Stationary 7260 To Auditors 6000 To Rent 180000 To Depreciation 51475 To Reg. charges 1200 To Interest 52899 To Tax paid 180909 To Net profit 422120 Total 1737750 Total 1737750
36 TRADING ACCOUNT FOR THE 4TH YEAR Particulars Amount Particulars Amount To Raw material 1300992 By sales 3442020 To Electricity 21805 To Fuel 136604 To Water charges 13240 To Gross profit c/d 1969379 Total 3442020 Total 3442020 PROFIT AND LOSS ACCOUNT FOR THE 4TH YEAR Particulars Amount particulars Amount To Salary 679800 By gross profit b/d 1969379 To Distribution expenses 48787 To Packing expenses 97574 To Telephone expenses 6620 To Repairs & maintenance 6814 To Insurance 6540 To Sundry expenses 7011 To Stationary 8131 To Auditors 6600 To Rent 198000 To Depreciation 46328 To Reg. charges 1200 To Interest 34237 To Tax paid 246521 To Net profit 575216 Total 1969379 Total 1969379
37 TRADING ACCOUNT FOR THE 5TH YEAR Particulars Amount Particulars Amount To Raw material 1431091 By sales 3908748 To Electricity 22895 To Fuel 150265 To Water charges 13902 To Gross profit c/d 2290595 Total 3908748 3908748 PROFIT AND LOSS ACCOUNT FOR THE 5TH YEAR Particulars Amount particulars Amount To Salary 747780 By gross profit b/d 2290595 To Distribution expenses 54642 To Packing expenses 107331 To Telephone expenses 6884 To Repairs & maintenance 7155 To Insurance 6540 To Sundry expenses 7572 To Stationary 8863 To Auditors 6600 To Rent 198000 To Depreciation 41695 To Reg. charges 1200 To Interest 12785 To Tax paid 325064 To Net profit 758484 Total 2290595 Total 2290595
38 BALANCE SHEET FOR THE PROJECTED PERIOD Year 1 Year 2 Year 3 Year 4 Year 5 LIABILITIES Own capital 274000 274000 274000 274000 274000 Bank loan 542400 433671 308706 165079 0 Net profit 236590 562035 984155 1559371 2317855 Total 1052990 1269706 1566861 1998450 2591855 ASSETS Fixed assets 571950 514755 463280 416952 375257 Current Assets 376240 651351 1001181 1480298 2116598 Preliminary 4800 3600 2400 1200 0 Deposit 100000 100000 100000 100000 100000 Total 1052990 1269706 1566861 1998450 2591855
39 NET PROFIT RATIO PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 NET PROFIT 236590 325445 422120 575216 758484 SALE 2520000 2745720 3054816 3442020 3908748 NET PROFIT RATIO 9.38 11.85 13.81 16.71 19.40 4500000 4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 0 Year 1 Year 2 Year 3 Year 4 Year 5 Sales Net Profit
40 FIXED ASSETS TO CURRENT ASSETS RATIO PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 FIXED ASSETS 571950 514755 463280 416952 375257 CURRENT ASSETS 376240 651351 1001181 1480298 2116598 RATIO 1.52 0.79 0.46 0.28 0.18 2500000 2000000 1500000 1000000 0 Current Assets Fixed Assets 500000 Year 1 Year 2 Year 3 Year 4 Year 5 Fixed Assets Current Assets
41 DEBT TO EQUITY RATIO PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 DEBT 542400 433671 308706 165079 0 EQUITY 274000 274000 274000 274000 0 RATIO 1.97 1.58 1.12 0.60 600000 500000 400000 300000 200000 100000 0 Year 1 Year 2 Year 3 Year 4 Year 5 Debt Equity
42 PROPRIOTORY RATIO PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL ASSETS 1052990 1269706 1566861 1998450 2591855 OWNER’S 274000 274000 274000 274000 274000 FUND PROPRIOTORY RATIO 3.84 4.63 5.71 7.29 9.46 3000000 2500000 2000000 1500000 1000000 0 Total assets Owners fund 500000 Year 1 Year 2 Year 3 Year 4 Year 5 Owners fund Total assets
43 RETURN ON TOTAL ASSETS PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 NET PROFIT 236590 325445 422120 575216 758484 TOTAL ASSETS 1052990 1269706 1566861 1998450 2591855 RETURN ON TOTAL ASSETS 0.22 0.25 0.26 0.28 0.29 RATIO 3000000 2500000 2000000 1500000 1000000 500000 0 Year 1 year 2 Year 3 Year 4 Year 5 Net Profit Total Assets
44 FIXED ASSETS TURNOVER RATIO PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 NET SALES 2520000 2745720 3054816 3442020 3908748 FIXED ASSETS 571950 514755 463280 416952 375257 RATIO 4.40 5.33 6.59 8.25 10.41 3500000 3000000 2500000 2000000 1500000 1000000 0 Fixed Assets Net Sales 500000 Year 1 Year 2 Year 3 Year 4 Year 5 Net Sales Fixed Assets
45 CURRENT ASSETS TURNOVER RATIO PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 SALES 2520000 2745720 3054816 3442020 3908748 CURRENT ASSETS 376240 651351 1001181 1480298 2116598 RATIO 6.69 4.21 3.05 2.32 1.85 4500000 4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 0 Year 1 Year 2 Year 3 Year 4 Year 5 Net Sales Current Assets
46 TOTAL ASSETS TURNOVER RATIO PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 SALES 2520000 2745720 3054816 3442020 3908748 TOTAL ASSETS 1052990 1269706 1566861 1998450 2591855 RATIO 2.39 2.16 1.95 1.72 1.51 4000000 3000000 2000000 0 Total Assets Net Sales 1000000 Year 1 Year 2 Year 3 Year 4 Year 5 Net Sales Total Assets
47 DEBT SERVICE COVERAGE RATIO Net profit after tax + depreciation + interest on loan/interest on loan +installment 1st year: 236590+63550+83264/83264+177864 =383404/261128 = 1.47 2nd year: 325445+57195+69135/69135+177864 =451775/946999 = 1.83 3rd year: 422120+51475+52899/52899+177864 =526494/230763 = 2.28 4th year: 575216+46328+34237/34237+177864 =655781/212101 = 3.09 5th year: 758484+41695+12785/12785+177864 =812964/190649 = 4.26
48 CHAPTER 5 CONCLUSION
49 CONCLUSION After the study we can conclude that loan proposal requires too many legal formalities which needs legal documentation work to be done. Since football industry is in profit making industry so we can earn interest and also pay back the installment on time. Our conclusion states that we should provide quality service to the customer and should maintain good relation with them for smooth functioning of the firm which in future will help to grow our business and will also help in increasing profit.
50 CHAPTER 6 BIBLIOGRAPHY
51 BIBLIOGRAPHY REFERRED BOOKS:  Financial management by Dr. Satish Inamdar  Financial management by Dr. N.M. Vechlekar REFERRED WEBSITES:  www.google.com  www.wikipedia.com  www.justdial.com

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project report on business proposal

  • 1.
  • 2.
    2 Football isthe most common sport in the world. It is known and in every part of the world. Even in India, it is hugely popular and is played by a huge number of people. But in recent times, due to urbanization, there are not many grounds or parks left for the people to play, which is where the artificial grounds come in. These type of grounds are already available in pune itself, but are less in number. But the popularity of these grounds is high and the demand for it is as well. They charge the people on per hour basis and usually charge Rs. 1000 – 2000 per hour. These grounds are smaller in size than actual football grounds and are usually meant for playing with five or six players per team. The grass used in these type of grounds is artificial which is made of polyethylene or polyester .
  • 3.
    3 VISION To provide good quality turf for playing.  To create a good environment for playing.  To price reasonably  To ensure high standards of service and hygiene at all times.  To make it an enjoyable experience.  To have tournaments to boost awareness about the business.
  • 4.
  • 5.
    5 ABOUT THEBUSINESS Pro football is a business which deals in renting grounds on per hour basis. Its aim is to satisfy customers need and to provide service at affordable rates. It aims at providing things with quality and hygiene. ESTABLISHMENT YEAR The business will be established in 2014 and start its operation by august 2014. LOCATION Pro football will be located in hadapsar, Pune STAFF OF THE BUSINESS POST NO. OF WORKER Entrepreneur 1 Skilled labour 1 unskilled labour 2 CUSTOMERS OF THE BUSINESS Customers or target population will be the youth and other common people.
  • 6.
    6 SUPPLIERS FORTHE BUSINESS GPgrass for synthetic grass Wanze for HDPE nets (side netting) The rest items can be bought from retailers locally.
  • 7.
  • 8.
    8 DATA COLLECTION The term data means group of information that represent the qualitative or quantitative attributes of a variable or set of variables. Data collection is a term used to describe a process of preparing and collecting data, for example, as part of process improvement or similar project. The purpose of data collection is to obtain information to keep on record, to make decisions about important issues, to pass information to others. The information for this project has been collected mainly through secondary sources:- PRIMARY DATA: The information for this project has been collected through primary and secondary sources. In primary data collection, the information and data has been collected through questions raised to the other ground employees. The loan procedure has been collected by asking questions to the bank. SECONDARY DATA: The secondary data were collected from the brochure of the bank, the boards with the information displayed in the bank premises and, from the bank website. The ground’s information has been collected from web sites (www.hotfut.in) for specifications and google for data about equipments ie. price, requirements, etc.
  • 9.
    9 LOAN PROPOSAL Detailed report (based on the potential borrowers, loan application and credit worthiness), presented usually by a banks officer (with his or her comments) to a senior loan officer or the bank loan committee. HOW TO MAKE A LOAN PROPOSAL STEP-1 Submit a cover letter with your proposal. This should be a brief introduction of your business, the size of the loan requested and the purpose of the loan. STEP-2 Begin your proposal with general information, including the business’ name and address, names and social security number of the principals, the purpose of the loan, the exact amount of money needed and detailed plans for what will be done with money. STEP-3 Describe your business in detail. Include information on prior and projected performance, unique aspects of your business and the legal and ownership structures. STEP-4 Provide complete market information. Identify your competition and explain how your business stacks up. Submit details on your current customer base.
  • 10.
    10 STEP-5 Preparemanagement profiles for all owners and key employees. Highlight their education, past accomplishments and qualifications. STEP-6 Submit complete information concerning your last 5years of operation. If you’re just starting out, provide projected balance sheets and income statements. Also include personal financial statements from all the owners and information on any collateral that will be placed as security for the loan. STEP-7 Proofread the document, double checking spelling, grammar and the facts contained in the proposal. STEP-8 Submit your proposal with each copy of the loan package your required to return. Remember to keep a copy for yourself. DOCUMENTS REQUIRED FOR BUSINESS PROPOSAL  Submit shop act license.  Submit 3 years estimated balance sheet.  3 years income tax challan.  Submit KYC (Know your Customer) documents- ration card, election card, photo, PAN card, light bill.  Person must be a shareholder of any company. Submit property guarantee (house valuation, tax receipt)
  • 11.
  • 12.
    12 COST OFINVESTMENT Sr. No. Particulars amount amount 1 Equipment cost Artificial grass (2 x 502 sq.mts at 378 per sq.mt) Side netting (2 x 1672 sq.mts at 37.8 per sq.mt) Halogen lights (12 lights x at 1200 each) Goal posts (4 x 900 each) Footballs (10 x 500 each) Concrete poles (for lights) (12 x 379512 126403 14400 3600 5000 3 Registration charges 6000 4 Deposit 500000 Total cost of the project 911000
  • 13.
    13 FINANCIAL DETAILSOF THE PROJECT Sr. No. PARTICULAR AMOUNT A BANK FINANCE (70%) 637000 B OWN CONTRIBUTION (30%) 274000 TOTAL COST OF THE PROJECT 911000 FINANCIAL DETAILS OF THE PROJECT OWN CAPITAL 30% BANK LOAN 70%
  • 14.
    14 REVANUE FORTHE PROJECTED YEARS PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 a) Revenue from retail sales 720000 782712 869496 976176 1103940 b) Revenue from distribution 1800000 1963008 2185320 2465844 2804808 Total Revenue 2520000 2745720 3054816 3442020 3908748 4000000 Index:- 3500000 3000000 2500000 2000000 1500000 1000000 500000 0 720000 782712 869496 976176 1103940 year 1 A= Revenue from counter sales B= Revenue from distribution year 2 year 3 year 4 year 5 1800000 1963008 2185320 2465844 2804808 A B
  • 15.
    15 REVENUE SCHEDULE Statement –A Showing revenue from retail sales for one month Particulars 1st Year % Increase in 2nd Year % Increase in 3rd Year % Increase in 4th Year % Increase in 5th Year Birth day cakes 14400 9 12 13 14 Fresh cream cakes 16200 8 10 11 12 Plum cake 10500 10 13 14 15 Butter cake 6300 8 10 11 11 Fruit cake 5400 8 9.5 11 11 Pastries 7200 9 11 13 14 Total 60000 8.71 11.09 12.27 13.09 Statement –B Showing revenue from distribution for one month Particulars 1st Year % Increase in 2nd Year % Increase in 3rd Year % Increase in 4th Year % Increase in 5th Year Birth day cakes 32400 10 13 14 15 Fresh cream cakes 25200 9 10 11 12 Plum cakes 36000 9 13 15 15 Butter cakes 23100 8 9 10.5 12 Fruit cakes 17100 8 9 10.5 12 Pastries 16200 10 12 14 15 Total 150000 9.05 11.33 12.84 13.5 Total Revenue for the Project= (Statement A + Statement B)*12
  • 16.
    16 EXPENDITURE FORONE MONTH Sr. no. Particular No. Rate Amount 1 Salaries Entrepreneur Skilled labour Unskilled labour Driver 1 1 2 1 25000 10000 5500 5500 25000 10000 11000 5500 2 Utilities Electricity Fuel Water charges 1600 8400 1000 3 Raw material 80000 4 Distribution 3000 5 Packing charges 6000 6 Rent 15000 7 Telephone expenses 500 8 Repairs & maintenance 500 9 Insurance 500 10 Sundry expenses 500 11 Stationary expenses 500 12 Accountant fees 500 Total 169500
  • 17.
    17 TOTAL AMOUNTOF EXPENDITURE FOR PROJECTED PERIOD Particular 1st Year 2nd Year 3rd Year 4th Year 5th Year Raw Material 960000 1056000 1161600 1300992 1431091 Electricity Expenses 19200 19968 20767 21805 22895 Fuel 100800 110880 121968 136604 150265 Water 12000 12360 12731 13240 13902 Wages & Salary 618000 618000 679800 679800 747780 Distribution 36000 39600 43560 48787 54642 Packaging 72000 79200 87120 97574 107331 Telephone Expenses 6000 6180 6365 6620 6884 Repairs & Maintenance 6000 6240 6490 6814 7155 Insurance 6000 6000 6000 6540 6540 Sundry Exp 6000 6240 6552 7011 7572 Stationary 6000 6600 7260 8131 8863 Auditors Fee 6000 6000 6000 6600 6600 Rent 180000 180000 180000 198000 198000 Total 2034000 2153268 2346213 2538518 2769520
  • 18.
    18 3000000 2500000 2000000 1500000 1000000 500000 0 EXPENSES year 1 year 2 year 3 year 4 year 5 expenses
  • 19.
    19 PERCENTAGE INCREASEIN EXPENDITURE Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Raw Material Nil 10% 10% 12% 10% Electricity Expenses Nil 4% 4% 5% 5% Fuel Nil 10% 10% 12% 10% Water Nil 3% 3% 4% 5% Wages and Salary Nil 0% 10% 0% 10% Distribution Expenses Nil 10% 10% 12% 12% Packaging Expenses Nil 10% 10% 12% 10% Telephone Expenses Nil 3% 3% 4% 4% Repairs and Maintenance Nil 4% 4% 5% 5% Insurance Nil 0% 0% 9% 0% Sundry expenses Nil 4% 5% 7% 8% Stationary Nil 10% 10% 12% 9% Auditors fees Nil 0% 0% 10% 0% Rent Nil 0% 0% 10% 0%
  • 20.
    CALCULATION OF INTERESTAND INSTALLMENT OF BANK LOAN 20 FOR 1ST YEAR Month Opening balance EMI Amount Interest Amount Principal Reduction Balance Due 1. 637000 14822 7432 7390 629610 2. 629610 14822 7346 7476 622134 3. 622134 14822 7258 7564 614570 4. 614570 14822 7170 7652 606918 5. 606918 14822 7081 7741 599177 6. 599177 14822 6991 7831 591346 7. 591346 14822 6899 7923 583423 8. 583423 14822 6807 8015 575408 9. 575408 14822 6713 8109 567299 10. 567299 14822 6618 8204 559095 11. 559095 14822 6523 8299 550796 12. 550796 14822 6426 8396 542400 Total 83264 94600
  • 21.
    21 CALCULATION OFINTEREST AND INSTALLMENT OF BANK LOAN 2ND YEAR Month Opening balance EMI Amount Interest Amount Principal Reduction Balance Due 1. 542400 14822 6328 8494 533906 2. 533906 14822 6229 8593 525313 3. 525313 14822 6129 8693 516620 4. 516620 14822 6027 8795 507825 5. 507825 14822 5925 8897 498928 6. 498928 14822 5821 9001 489927 7. 489927 14822 5716 9106 480821 8. 480821 14822 5610 9212 471609 9. 471609 14822 5502 9320 462289 10. 462289 14822 5393 9429 452860 11. 452860 14822 5283 9539 443321 12. 443321 14822 5172 9650 433671 Total 69135 108729
  • 22.
    CALCULATION OF INTERESTAND INSTALLMENT OF BANK LOAN 22 3RD YEAR Month Opening balance EMI Amount Interest Amount Principal Reduction Balance Due 1. 433671 14822 5060 9762 423909 2. 423909 14822 4946 9876 414033 3. 414033 14822 4831 9991 404042 4. 404042 14822 4714 10108 393934 5. 393934 14822 4596 10226 383708 6. 383708 14822 4477 10345 373363 7. 373363 14822 4356 10466 362897 8. 362897 14822 4234 10588 352309 9. 352309 14822 4110 10712 341597 10. 341597 14822 3985 10837 330760 11. 330760 14822 3859 10963 319797 12. 319797 14822 3731 11091 308706 Total 52899 124965
  • 23.
    23 CALCULATION OFINTEREST AND INSTALLMENT OF BANK LOAN 4TH YEAR Month Opening balance EMI Amount Interest Amount Principal Reduction Balance Due 1. 308706 14822 3602 11220 297486 2. 297486 14822 3471 11351 286135 3. 286135 14822 3338 11484 274651 4. 274651 14822 3204 11618 263033 5. 263033 14822 3069 11753 251280 6. 251280 14822 2932 11890 239390 7. 239390 14822 2793 12029 227361 8. 227361 14822 2653 12169 215192 9. 215192 14822 2511 12311 202881 10. 202881 14822 2367 12455 190426 11. 190426 14822 2222 12600 177826 12. 177826 14822 2075 12747 165079 Total 34237 143627
  • 24.
    CALCULATION OF INTERESTAND INSTALLMENT OF BANK LOAN 24 5TH YEAR Month Opening balance EMI Amount Interest Amount Principal Reduction Balance Due 1. 165079 14822 1926 12896 152183 2. 152183 14822 1775 13047 139136 3. 139136 14822 1623 13199 125937 4. 125937 14822 1469 13353 112584 5. 112584 14822 1314 13508 99076 6. 99076 14822 1156 13666 85410 7. 85410 14822 997 13825 71585 8. 71585 14822 835 13987 57598 9. 57598 14822 672 14150 43448 10. 43448 14822 507 14315 29133 11. 29133 14822 340 14482 14651 12. 14651 14822 171 14651 0 Total 12785 165079
  • 25.
    25 SCHEDULE FORDEPRECIATION 1- Depreciation on Oven Year Opening balance Depreciation amount @ 10% Closing balance 1 100000 10000 90000 2 90000 9000 81000 3 81000 8100 72900 4 72900 7290 65610 5 65610 6561 59049 2- Depreciation on Mixer Year Opening balance Depreciation amount @ 10% Closing balance 1 50000 5000 45000 2 45000 4500 40500 3 40500 4050 36450 4 36450 3645 32805 5 32805 3280 29525 3- Depreciation on Refrigerator Year Opening balance Depreciation amount @ 10% Closing balance 1 40000 4000 36000 2 36000 3600 32400 3 32400 3240 29160 4 29160 2916 26244 5 26244 2624 23620 4- Depreciation on Motor Vehicle Year opening balance Depreciation amount @ 10% Closing balance 1 190000 19000 171000 2 171000 17100 153900 3 153900 15390 138510 4 138510 13851 124659 5 124659 12466 112193
  • 26.
    26 5- Depreciationon Furniture Year Opening balance Depreciation amount @ 10% Closing balance 1 100000 10000 90000 2 90000 9000 81000 3 81000 8100 72900 4 72900 7290 65610 5 65610 6561 59049 6- Depreciation on Weighing scale Year Opening balance Depreciation amount @ 10% Closing balance 1 10000 1000 9000 2 9000 900 8100 3 8100 810 7290 4 7290 729 6561 5 6561 656 5905 7- Depreciation on Fire extinguisher Year Opening balance Depreciation amount @ 10% Closing balance 1 1100 110 990 2 990 99 810 3 810 81 729 4 729 73 656 5 656 65 591 8- Depreciation on Inverter Year Opening balance Depreciation amount @ 10% Closing balance 1 20000 2000 18000 2 18000 1800 16200 3 16200 1620 14580 4 14580 1458 13122 5 13122 1312 11810
  • 27.
    27 9- Depreciationon trays Year Opening balance Depreciation amount @ 10% Closing balance 1 60000 6000 54000 2 54000 5400 48600 3 48600 4860 43366 4 43366 4374 39366 5 39366 3936 35430 10- Depreciation on Electricity Fitting Year Opening balance Depreciation amount @ 10% Closing balance 1 22000 2200 19800 2 19800 1980 17820 3 17820 1782 16038 4 16038 1604 14434 5 14434 1443 12991 11- Depreciation on Utensils Year Opening balance Depreciation amount @ 10% Closing balance 1 40000 4000 36000 2 36000 3600 32400 3 32400 3240 29160 4 29160 2916 26244 5 26244 2624 23620 12- Other equipments Year Opening balance Depreciation amount @ 10% Closing balance 1 2400 240 2160 2 2160 216 1944 3 1944 194 1750 4 1750 175 1575 5 1575 157 1418
  • 28.
    28 700000 600000 500000 400000 300000 200000 100000 0 FIXED ASSETS AND DEPRECIATION year 1 year 2 year 3 year 4 year 5 Fixed Assets F.A.After depriciation Total depriciation
  • 29.
    29 INCOME STATEMENT PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 REVENUE FROM PROJECT 2520000 2745720 3054816 3442020 3908748 LESS: EXPENCE OF PROJECT 2034000 2153268 2346213 2538518 2769520 PROFIT BEFORE INTREST DEPRICIATION AND TAX 2034000 2153268 2346213 2538518 2769520 LESS:INTREST 83264 69135 52899 34237 12785 LESS:DEPRICIATION 63550 57195 51475 46328 41695 LESS: REGISTRATION 1200 1200 1200 1200 1200 PROFIT BEFORE TAX 337986 464922 603029 821737 1083548 LESS: TAX (30%) 101396 139477 180909 246521 325064 NET PROFIT 236590 325445 422120 575216 758484
  • 30.
    30 NET PROFIT net profit 800000 700000 600000 500000 400000 300000 200000 100000 0 year 1 year 2 year 3 year 4 year 5 net profit
  • 31.
    31 CASH FLOWSTATEMENT PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 CASH INFLOW OPENING BALANCE NIL 376240 651351 1001181 1480298 REVENUE 2520000 2745720 3054816 3442020 3908748 OWN CAPITAL 274000 NIL NIL NIL NIL BANK LOAN 637000 NIL NIL NIL NIL TOTAL 3431000 3121960 3706167 4443201 5389046 CASH OUTFLOW FIXED ASSETS 635500 ----- ----- ----- ----- DEPOSIT 100000 ----- ----- ----- ----- REG. CHARGES 6000 ----- ----- ----- ----- WORKING CAPITAL 2034000 2153268 2346213 2538518 2769520 INSTALLMENT 177864 177864 177864 177864 177864 TAX PAID 101396 139477 180909 246521 325064 TOTAL 3054760 2470609 2704986 2962903 3272448 CLOSING BALANCE 376240 651351 1001181 1480298 2116598
  • 32.
    32 376240 CASHIN HAND 651351 Cash in hand 1001181 1480298 2116598 2500000 2000000 1500000 1000000 500000 0 year 1 year 2 year 3 year 4 year 5
  • 33.
    33 TRADING ACCOUNTFOR THE 1ST YEAR Particulars Amount Particulars Amount To Raw material 960000 By sales 2520000 To Electricity 19200 To Fuel 100800 To Water charges 12000 To Gross profit c/d 1428000 Total 2520000 Total 2520000 PROFIT AND LOSS ACCOUNT FOR THE 1ST YEAR Particulars Amount Particulars Amount To Salary 618000 By gross profit b/d 1428000 To Distribution expenses 36000 To Packing expenses 72000 To Telephone expenses 6000 To Repairs & maintenance 6000 To Insurance 6000 To Sundry expenses 6000 To Stationary 6000 To Auditors 6000 To Rent 180000 To Depreciation 63550 To Reg. charges 1200 To Interest 83264 To Tax paid 101396 To Net profit 236590 Total 1428000 Total 1428000
  • 34.
    34 TRADING ACCOUNTFOR THE 2ND YEAR Particulars Amount Particulars Amount To Raw material 1056000 By sales 2745720 To Electricity 19968 To Fuel 110880 To Water charges 12360 To Gross profit c/d 1546512 Total 2745720 Total 2745720 PROFIT AND LOSS ACCOUNT FOR THE 2ND YEAR Particulars Amount particulars Amount To Salary 618000 By Gross profit b/d 1546512 To Distribution expenses 39600 To Packing expenses 79200 To Telephone expenses 6180 To Repairs & maintenance 6240 To Insurance 6000 To Sundry expenses 6240 To Stationary 6600 To Auditors 6000 To Rent 180000 To Depreciation 57195 To Reg. charges 1200 To Interest 69135 To Tax paid 139477 To Net profit 325445 Total 1546512 Total 1546512
  • 35.
    35 TRADING ACCOUNTFOR THE 3RD YEAR Particulars Amount particulars Amount To Raw material 1161600 By sales 3054816 To Electricity 20767 To Fuel 121968 To Water charges 12731 1737750 To Gross profit c/d Total 3054816 Total 3054816 PROFIT AND LOSS ACCOUNT FOR THE 3RD YEAR Particulars Amount particulars Amount To Salary 679800 By Gross profit b/d 1737750 To Distribution expenses 43560 To Packing expenses 87120 To Telephone expenses 6365 To Repairs & maintenance 6490 To Insurance 6000 To Sundry expenses 6552 To Stationary 7260 To Auditors 6000 To Rent 180000 To Depreciation 51475 To Reg. charges 1200 To Interest 52899 To Tax paid 180909 To Net profit 422120 Total 1737750 Total 1737750
  • 36.
    36 TRADING ACCOUNTFOR THE 4TH YEAR Particulars Amount Particulars Amount To Raw material 1300992 By sales 3442020 To Electricity 21805 To Fuel 136604 To Water charges 13240 To Gross profit c/d 1969379 Total 3442020 Total 3442020 PROFIT AND LOSS ACCOUNT FOR THE 4TH YEAR Particulars Amount particulars Amount To Salary 679800 By gross profit b/d 1969379 To Distribution expenses 48787 To Packing expenses 97574 To Telephone expenses 6620 To Repairs & maintenance 6814 To Insurance 6540 To Sundry expenses 7011 To Stationary 8131 To Auditors 6600 To Rent 198000 To Depreciation 46328 To Reg. charges 1200 To Interest 34237 To Tax paid 246521 To Net profit 575216 Total 1969379 Total 1969379
  • 37.
    37 TRADING ACCOUNTFOR THE 5TH YEAR Particulars Amount Particulars Amount To Raw material 1431091 By sales 3908748 To Electricity 22895 To Fuel 150265 To Water charges 13902 To Gross profit c/d 2290595 Total 3908748 3908748 PROFIT AND LOSS ACCOUNT FOR THE 5TH YEAR Particulars Amount particulars Amount To Salary 747780 By gross profit b/d 2290595 To Distribution expenses 54642 To Packing expenses 107331 To Telephone expenses 6884 To Repairs & maintenance 7155 To Insurance 6540 To Sundry expenses 7572 To Stationary 8863 To Auditors 6600 To Rent 198000 To Depreciation 41695 To Reg. charges 1200 To Interest 12785 To Tax paid 325064 To Net profit 758484 Total 2290595 Total 2290595
  • 38.
    38 BALANCE SHEETFOR THE PROJECTED PERIOD Year 1 Year 2 Year 3 Year 4 Year 5 LIABILITIES Own capital 274000 274000 274000 274000 274000 Bank loan 542400 433671 308706 165079 0 Net profit 236590 562035 984155 1559371 2317855 Total 1052990 1269706 1566861 1998450 2591855 ASSETS Fixed assets 571950 514755 463280 416952 375257 Current Assets 376240 651351 1001181 1480298 2116598 Preliminary 4800 3600 2400 1200 0 Deposit 100000 100000 100000 100000 100000 Total 1052990 1269706 1566861 1998450 2591855
  • 39.
    39 NET PROFITRATIO PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 NET PROFIT 236590 325445 422120 575216 758484 SALE 2520000 2745720 3054816 3442020 3908748 NET PROFIT RATIO 9.38 11.85 13.81 16.71 19.40 4500000 4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 0 Year 1 Year 2 Year 3 Year 4 Year 5 Sales Net Profit
  • 40.
    40 FIXED ASSETSTO CURRENT ASSETS RATIO PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 FIXED ASSETS 571950 514755 463280 416952 375257 CURRENT ASSETS 376240 651351 1001181 1480298 2116598 RATIO 1.52 0.79 0.46 0.28 0.18 2500000 2000000 1500000 1000000 0 Current Assets Fixed Assets 500000 Year 1 Year 2 Year 3 Year 4 Year 5 Fixed Assets Current Assets
  • 41.
    41 DEBT TOEQUITY RATIO PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 DEBT 542400 433671 308706 165079 0 EQUITY 274000 274000 274000 274000 0 RATIO 1.97 1.58 1.12 0.60 600000 500000 400000 300000 200000 100000 0 Year 1 Year 2 Year 3 Year 4 Year 5 Debt Equity
  • 42.
    42 PROPRIOTORY RATIO PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL ASSETS 1052990 1269706 1566861 1998450 2591855 OWNER’S 274000 274000 274000 274000 274000 FUND PROPRIOTORY RATIO 3.84 4.63 5.71 7.29 9.46 3000000 2500000 2000000 1500000 1000000 0 Total assets Owners fund 500000 Year 1 Year 2 Year 3 Year 4 Year 5 Owners fund Total assets
  • 43.
    43 RETURN ONTOTAL ASSETS PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 NET PROFIT 236590 325445 422120 575216 758484 TOTAL ASSETS 1052990 1269706 1566861 1998450 2591855 RETURN ON TOTAL ASSETS 0.22 0.25 0.26 0.28 0.29 RATIO 3000000 2500000 2000000 1500000 1000000 500000 0 Year 1 year 2 Year 3 Year 4 Year 5 Net Profit Total Assets
  • 44.
    44 FIXED ASSETSTURNOVER RATIO PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 NET SALES 2520000 2745720 3054816 3442020 3908748 FIXED ASSETS 571950 514755 463280 416952 375257 RATIO 4.40 5.33 6.59 8.25 10.41 3500000 3000000 2500000 2000000 1500000 1000000 0 Fixed Assets Net Sales 500000 Year 1 Year 2 Year 3 Year 4 Year 5 Net Sales Fixed Assets
  • 45.
    45 CURRENT ASSETSTURNOVER RATIO PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 SALES 2520000 2745720 3054816 3442020 3908748 CURRENT ASSETS 376240 651351 1001181 1480298 2116598 RATIO 6.69 4.21 3.05 2.32 1.85 4500000 4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 0 Year 1 Year 2 Year 3 Year 4 Year 5 Net Sales Current Assets
  • 46.
    46 TOTAL ASSETSTURNOVER RATIO PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 SALES 2520000 2745720 3054816 3442020 3908748 TOTAL ASSETS 1052990 1269706 1566861 1998450 2591855 RATIO 2.39 2.16 1.95 1.72 1.51 4000000 3000000 2000000 0 Total Assets Net Sales 1000000 Year 1 Year 2 Year 3 Year 4 Year 5 Net Sales Total Assets
  • 47.
    47 DEBT SERVICECOVERAGE RATIO Net profit after tax + depreciation + interest on loan/interest on loan +installment 1st year: 236590+63550+83264/83264+177864 =383404/261128 = 1.47 2nd year: 325445+57195+69135/69135+177864 =451775/946999 = 1.83 3rd year: 422120+51475+52899/52899+177864 =526494/230763 = 2.28 4th year: 575216+46328+34237/34237+177864 =655781/212101 = 3.09 5th year: 758484+41695+12785/12785+177864 =812964/190649 = 4.26
  • 48.
    48 CHAPTER 5 CONCLUSION
  • 49.
    49 CONCLUSION Afterthe study we can conclude that loan proposal requires too many legal formalities which needs legal documentation work to be done. Since football industry is in profit making industry so we can earn interest and also pay back the installment on time. Our conclusion states that we should provide quality service to the customer and should maintain good relation with them for smooth functioning of the firm which in future will help to grow our business and will also help in increasing profit.
  • 50.
    50 CHAPTER 6 BIBLIOGRAPHY
  • 51.
    51 BIBLIOGRAPHY REFERREDBOOKS:  Financial management by Dr. Satish Inamdar  Financial management by Dr. N.M. Vechlekar REFERRED WEBSITES:  www.google.com  www.wikipedia.com  www.justdial.com