CONTENT

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15)

Introduction Personal information Present status & market potential Type of unit & site selection Cost of project Means of finance Preliminary and preoperative expenses Production programme Production process Manpower requirements Infrastructural facilities Utilities Administrative expenses Break even calculation Project implementation schedule

ANNEXURES

1) Requirement of plant and machinery 2) Requirement of raw material 3) Working capital requirement 4) Depreciation calculation 5) Interest calculation 6) Cost of production and profitability 7) Cash flow statement

INTRODUCTION

1) About the project 2) Product(s) to be manufactured and its end-use(S), applications and consumers

PERSONAL INFORMATION ABOUT PROMOTER(S)

Name Address Telephone number Date of birth : :

: :

Age:

Years:

Educational qualification

Experience

Special training (if any) Family background Your strengths in this field :

: :

Present status & market potential

Basic market information about your project Existing manufacturers of the products in your local area and their annual production\sales turnover Expected customers and selected market need Annual production and market need Marketing strategy Pricing Export potential if any

 Scope for diversification Conclusion

Type of unit & site selection

1) Name of unit 2) Address 3) Type of unit 4) Techno-economic Reasons for site selection 5) Location of factory and Address 6) Requirement of land & Building : :

: : : :

Cost of project

The cost of the project has been estimated at total R.s (Rupees in lacs) Land

 Land development expenses Building Plant & machinery (Including installation, electrification, erection, etc.) Other fixed assets Contingencies & Escalation

Preliminary & pre-operative expenses Working capital margin

Means of finance
The cost of the project as stated above is suggested to be met through the following sources: 1) Promoters contribution 2) Long term loan from SFC 3) Unsecured deposits 4) Subsidy (if available) 5) Any other (please specify) Total Rs. Rs. Rs. Rs Rs

Preliminary and preoperative expenses

Training cost, if any

Rs.

Legal expenses, scrutiny fees

Rs.

Project report preparation

Rs.

Establishment expenses
Rs.

Trail production
Rs.

Electrification & water deposits

Rs.

Inauguration expenses & other expenses

Rs. Total Rs.

Production programme

Annual installed capacity Utilization of capacity Number of shifts (8 hours) per day : Size of batch, in case of chemicals : :

Production process

Technical know-how availability Process adopted and yield Stepwise conversion process from raw material to finished Product with the utilization of particular machinery Raw material requirement per unit production Flow chart in case of chemical products Quality control measures

MANPOWER REQUIRMENT: (at 90% capacity utilization) FACTORY STAFF 1) Production Manager 2) Supervisor 3) Skilled worker(s) 4) Semi-skilled worker(s) 5) Unskilled worker(s) 6) Chowkidar OFFICE STAFF 1) Clerk/ typist 2) Accountant 3) Peon SALES STAFF

1) Sales manager 2) Field staff SUB TOTAL: ADD: BENEFITS @ 30% TOTAL..

INFRASTRUCTURAL FACILITIES (AT 90% Capacity utilization) Electricity (Total connected load) Fuel Requirement/day Transportation Availability & possibilities of Meeting these requirement UTILITIES AND OVERHEAD COSTS : (AT 90% CAPACITY UTILISATION) 1) Electricity 2) Fuel 3) Water 4) Transportation 5) Any other: TOTAL RS. . ADMINISTRATIVE EXPENSES (At 90% capacity utilization) 1) Stationery & printing 2) Postage

3) Telephone / Telegrams 4) Legal charges 5) Office rent if any 6) Travelling 7) Miscellaneous TOTAL RS. ANALYSIS OF BREAK EVEN POINT (BEP) A. SALES realization B. Variable cost: Raw material Consumables Power ,fuel ,water, Salaries & wages (partly) Interest on working capital loan Selling, packing & distribution expenses C. FIXED COSTS: Repairs & maintenance Rents, taxes, insurance Salary & wages Administrative expenditure Interest on term loan Depreciation RS

D. Contribution Contribution = sales variable Therefore BEP = Fixed Cost/ Contribution *100= %

PROJECT IMPLEMENTATION SCHEDULE ON WEEKS/DAYS 1. Product selection & completion of market Survey 2. Project Report Preparation 3. Site Selection 4. Loan application for Fixed Assets and Working Capital 5. Machinery orders to be placed DATE

6. Building for factory to be ready 7. Installation of the machinery 8. Power connection 9. Recruitment of manpower 10.Electrification /erection 11.Trail production 12.Sales Arrangement 13.Commercial Production

ANNEXURE -1

COST OF PLANT & MACHINERY I. II. III. IV. V. VI. Testing equipment , if any i. ii. iii. iv. Tools, Dies, Jigs, Fixtures, etc TOTAL: Add: 30% toward Taxes, Freight, Insurance Installation , Erection, Electrification etc. Grand Total:

Names & addresses of the machinery suppliers 1. 2. 3.

4. 5. ANNEXURE-2 RAW MATERIAL (R.M) REQUIRMENT & ITS COST REQUIRMENT PER YEAR (at 90% capacity utilization)

ANNEXURE-3 WORKING CAPITAL REQUIRMENT (AT 90% UTILISATION)

ANNEXURE-4 DEPRECIATION CALCULATION

Building Machinery

@10% @15%

Tools & Dies @30% Furniture Total

ANNEXURE-5

INTEREST CALCULATIONS
Interest on term loan Interest on working capital Interest on other deposits, if any Total @15% @18% As applicable

ANNEXURE-6 COST OF PRODUCTION & PROFITABILITY A) COST OF PRODUCTION

1. Raw material 2. Utilities 3. Consumables, stores & spares 4. Repair & maintenance 5. Rent, tax & Insurance 6. Salaries & wages 7. Admn. Expenses 8. Selling & distribution expenses 9. Packaging expenses 10. Miscellaneous expenses 11. Interest on term loan + working capital loan 12. Depreciation

B)

Income

1. Total sales income 2. Job work income 3. Scrap & others Total annual income

C) D) E)

Gross profit (B-A) Income tax Net profit

ANNEXURE-7 CASH FLOW STATEMENT 1. TERM LOAN 2. PROMOTERS CONTRIBUTION

3. GROSS PROFIT 4. WORKING CAPITAL LOAN DISPOSITION OF FUNDS CAPITAL INVESTMENT INCREASE IN CURRENT ASSETS REPAYMENT OF LOAN INTEREST ON TERM LOAN INTEREST ON BANK LOAN OPENING BALANCE NET SURPLUS CLOSING BALANCE

i. 1