A

PROJECT REPORT
ON
THE STUDY OF ACQUIRING LOANS AND ADVANCES FOR
STARTING A NEW BUSINESS ORGANISATION
GUIDED BY
PROF. WAFIYA WAHID
SUBMITTED BY
SOHAIL SALIM LAKHAMSEY
ROLL NO. 248
T.Y.BBA FINANCE
SUBMITTED TO
THE UNIVERSITY OF PUNE
IN PARTIAL FULFILLMENT REQUIREMENT OF
BACHELOR OF BUSINESS ADMINISTRATION

2010-2011
ABEDA INAMDAR SENIOR COLLEGE
CAMP, PUNE

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ACKNOWLEDGEMENTS

OUR BEST THOUGHTS COME FROM OTHERS

The successful completion of any research project requires guidance and
help from a number of people. I was fortunate to have all the support.

I feel greatly honored in availing this opportunity of expressing my deep

gratitude to Dr. E.M KHAN principal of ABEDA INAMDAR SENIOR
COLLEGE OF ARTS SCIENCE AND COMMERCE PUNE for providing
me this opportunity and guiding me with academics and project work.
I feel greatly delighted to express my deepest sense of gratitude to my learned
and esteem teacher Mrs. Wafiya Wahid for her valuable assistance, keen
interest and constant motivation at each step and for spending her precious
time, without her help, it would have not been possible for me to complete
the project
Last but not the least, I express my sincere thanks to all those people, known
and unknown, who have contributed in making this project a success.

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DECLARATION

I, the undersigned, hereby declare that the following documented

Project Report titled LOAN FOR STARTING A NEW BUSINESS
ORGANISAION is a bonafide work prepared by me. This is an
organized and authentic work carried by me for the partial
fulfillment of the Bachelor of Business Administration. The
findings in this project report are based on the data collected by
me from different sources.

All the deeds put in the fulfillment of the task are genuine and
original to best of my knowledge.

Date:Place :LAKHAMSEY

SOHAIL SALIM

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TABLE OF CONTENTS
TOPIC

PG.NO.

1. INTRODUCTION TO THE STUDY--------------------------------

2. ORGANISATION PROFILE-----------------------------------------

3. REVIEW OF LITERATUTE----------------------------------------- 12
4. CASE STUDY---------------------------------------------------------- 23
5. RESEARCH METHODOLOGY------------------------------------- 42
6. RECOMMENDATIONS AND CONCLUSIONS------------------ 47
7. BIBLIOGRAPHY------------------------------------------------------- 49

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CHAPTER 1
INTRODUCTION
TO THE
STUDY

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OBJECTIVES OF THE STUDY

1. To know and understand the loan procedure at The Lokseva Sahakari Bank
Ltd.
2. To study the criteria for availing the loan.
3. To study the various interest rates provided by the bank.
4. To know the procedures followed by the banks in making a project report
and criterions for sanctioning of the loan.
5. To study the sanction amount of the loan.
6. To get experience of the actual loan acquiring process in the banking world
7. To know about the documents required for acquiring the loan.
8. To get an opportunity to interact with the various executives and officials
at The Lokseva Sahakari Bank Ltd..

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SCOPE OF THE STUDY

Chikki is a sweet product prepared by mixing various types of nuts and other
ingredients either with jaggery or sugar. These ingredients are mixed with
thick syrup made of jaggery or sugar. The mixture is cooled and then smaller
pieces are made and packed. There are many ingredients which are used like
groundnut or cashewnut kernels, sesame seeds, pieces of dried coconut, dryfruits and so on. Chikki is popular all over the country amongst all age groups
but school going children and rural areas are the main targets.
This product can be manufactured anywhere on the country, but this note
considers the North-Eastern States as a preferred location, in view of growing
market.
Chikkies can be made from many dry ingredients as explained above. It is a
dry and sweet preparation. It can be made by using costly ingredients like dry
fruits but market for such costly chikkies is limited and demand is only
during winter season. But chikkies made from groundnut kernels, dry
coconut and sesame seeds have vast market round the year. This note deals
with such low cost high volume products.
The scope of my project is manufacturing chikkies in PUNE due to the good
market conditions, long sustainability with low rate of competition and easy
availability of labour.

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LIMITATIONS OF THE STUDY

As I have found, loan acquiring procedure is a very vast area of study,
to go in depth and gain expertise in this sector with the knowledge of
different loan schemes and various interest rates and the fulfillment of
various conditions is a vast area of study, which requires more time and
efforts which is not possible in the given time frame but this is all my best
efforts during the said period.
Some of the limitations are as follows:1. Due to the strict confidential policy of the, the accounts department
provided only screened information.
2. Accuracy of the data cannot be guaranteed.
3. Due to the busy schedule of the manager of the bank the information is
very limited.

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CHAPTER 2
ORGANISATIONS
PROFILE

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LOKSEVA SAHAKARI BANK LIMITED

The Lokseva Sahakari Bank Ltd., was established with its share holders. The
registered office of the organization is Near Pune Zilla Parishad, Narpatgiri
Chowk RD, Rasta Peth, Pune - 411011 .

HISTORY
Established in 1906, The Lokseva Sahakari Bank Ltd. is one of the oldest
bank in Pune. The Bank has completed its service successfully. The Bank is
a professionally managed 'Financial Institution', a benchmark of credibility
and innovation.
Bank has nurtured its traditional values in business practices and in
serving the small customers. At the same time, it has adopted new
technologies and advanced banking tools to add value to its services. The
Lokseva Sahakari Bank Ltd. has carved a niche in the banking sector due to
its rich heritage, integrity, adherence to prudent banking practices, technology
advancement, customized products and services and most of all due to its
experienced, qualified and professional board of Directors.

BRANCHES
This bank has no other branches.
THE BOARD MEMBERS ARE AS FOLLOWS
Sanjay Pitte------------------------------------------- CEO
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Ramesh Pawar--------------------------------------- Maanager

Sandip Sonawane------------------------------------ Assistant Manager

OBJECTIVES
The objectives of The Lokseva Sahakari Bank Ltd. are

To give loans to ward of the Lokseva Sahakari Bank Ltd. members at

concessional rates for pursuing higher education abroad.
To give medical help to members up to specified limits.
To felicitate the awards of members who excel in Std. X & XII
examinations.
To promote educational spirit and to maintain, support, propagate
intellectual qualities educational facilities, etc.
To arrange educational seminars, conferences, etc.
To grant relief in the event of natural calamities such as earthquakes,
floods, famine,
The Foundation also provides computer loan facility
Special arrangement as Executor & Trustee for preparation & execution
of Will especially for the Senior Citizens.

11 | P a g e

FUTURE PLANS
1. Internet Banking
2. Utility Terminal
3. Opening 3 ATMs in Pune city.

CHAPTER 3
REVIEW OF
LITERATURE

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PEANUT CHIKKI

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Chikki is a sweet product prepared by mixing various types of nuts and

other ingredients either with jaggery or sugar. These ingredients are
mixed with thick syrup made of jaggery or sugar. The mixture is cooled
and then smaller pieces are made and packed. There are many
ingredients which are used like groundnut or cashewnut kernels,
sesame seeds, pieces of dried coconut, dry-fruits and so on. Chikki is
popular all over the country amongst all age groups but school going
children and rural areas are the main targets.
This product can be manufactured anywhere on the country, but this
note considers the North-Eastern States as a preferred location, in view
of growing market.

PRODUCTS
Chikkies can be made from many dry ingredients as explained above. It
is a dry and sweet preparation. It can be made by using costly
ingredients like dry fruits but market for such costly chikkies is limited
and demand is only during winter season. But chikkies made from
groundnut kernels, dry coconut and sesame seeds have vast market
round the year. This note deals with such low cost high volume
products.
Varieties of Chikkies are as follows:1. GroundNut Chikki.
2. Crushed GroundNut Chikki.
3. Coconut Chikki.
4. Gud-Dani Chikki.
14 | P a g e

5. Special-Mix Chikki.
6. Rajgira Chikki.
7. Sesame Chikki.
8. Puffed Rice Chikki.
9. Bengal Gram Chikki.
10. Strawberry Chikki.
11. Chocolate Chikki.
12. Assorted Chikki.
13. Diabetic Chikki.
14. Cashew Nut Chikki.
15. Dry Fruit Chikki

CAPITAL INPUTS

Land and Building

A built up unit of about 1000 sq.ft. is adequate. The production
area should be about 500 sq.ft.and can be divided into two major
sections. One would have furnaces (bhattis) and the second one
would accommodate trays for drying. A packing room of about 200
sq.ft. and raw materials storage of 150 sq.ft. is sufficient. Finished
goods godown can be accommodated in 150 sq.ft.
The rent of this kind of unit would vary according to the
location but we can consider the rent to be varying from Rs.
5000 Rs. 6000.

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Machinery
Keeping in mind the size of the market, it is suggested to have
rated capacity of 5 tonnes per month or 50 tonnes per year with
one shift working and 300 working days every year. Increasing of
capacity would not require huge capital investment or time and
hence moderate capacity is suggested. Following equipments shall
be required.

Sr.No.

Description

No.

Rate

Amount

Oil-fired Furnaces

15000

60,000

Stainless Steel Utensils

10

4000

40,000

Large Capacity Pans

4000

20,000

Platform Type Weighing Scales

15000

15,000

Electronic Weighing Scales

5000

5,000

Drying Trays

25

2000

50,000

Misc. Equipments

--

-----

10,000

TOTAL

2,00,000

Miscellaneous Assets
A provision of Rs.50,000/- would be sufficient to take care of other
assets like furniture and fixtures, exhaust fans, electrical, storage
facilities, etc.

16 | P a g e

Utilities
The all important requirement will be furnace oil. It is also
possible to use either diesel or wood. Power requirement will be 7.5
HP whereas water requirement per day will be 200-300 liters.
Total expenditure on utilities at 100% capacity level will be up-to
9500 a month.

Depreciation
The method adopted is Fixed Line Method and rates assumed are
10% on machinery and furniture.

Some of the machinery suppliers are as under:

1. Sujata Enterprises, Laxmi Road, Pune 400 030
2. Apurva Engg Works, Borivali, Mumbai 400 098
3. Guru Nanak Engg. & Foundry Works, 166, Focal Point, Mehta
Road, Amritsar- 143039
---Tel No. 2583542-2587943, Fax: 2587944
4. Sadanand Approtech Pvt. Ltd, B-34, Mini Nagar, Dahisar(E),
Mumbai- 400068
---Tel No. 28114536-28104143
5. Sahyog Steel Fabrication, 28, Bhojrajpara, Gondal- 360311.
---Tel No. 224075

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Machinery Description
1. Oil-fired Furnace

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2. Stainless Steel Utensils

3. Large Capacity Pans

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4. Platform Type Weighing Scale

5.Electronic Weighing Scale

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6.Drying Trays

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Raw Material
The major raw material will be groundnut kernels, sesame seeds,
dry coconut and jaggery. Groundnut chikki is very popular and
hence 60% of the total production will be of groundnut chikkies.
Very small quantity of essences shall be required. As regards
packing materials, small sized wrappers, card-board boxes or
plastic jars and second-hand corrugated carton will be required.

MANPOWER REQUIREMENTS

Sr. No.

Designation

No.

Rate

Amount

1 Entrepreneur

10000

10000

2 Skilled Labour

8000

8000

3 Unskilled Labour

3500

10500

Total

28500

22 | P a g e

MANUFACTURING PROCESS
The process is very simple. Groundnut kernels are roasted to
remove the outer red skin and they are split in the splitting
machine. In case of sesame seeds or dry coconut they are roasted
and small pieces of coconut are made manually. Simultaneously,
jaggery is boiled in water till thick syrup is formed and then
filtered to remove unwanted particles. This hot syrup is mixed with
groundnut splits or roasted sesame seeds or pieces of roasted
coconut and then this mixture is poured in trays for drying. After
about couple of hours, small square sized pieces are cut and
individual piece is packed in plastic wrappers. The Process Flow
Chart is as follows:

Roasting of groundnuts, sesame seeds and

pieces of coconuts

23 | P a g e

Preparation of syrup of jaggery

Mixing of ingredients in syrup of

jaggery

Cooling and cutting

Packing

MARKET POTENTIAL

Demand and Supply:

Chikkies are not much popular in urban areas and are eaten in a very
small quantity that too during winter season. But they are very popular
in semi-urban and rural areas especially amongst school going children.
Low priced chikkies packed individually in plastic sheets have large
market. Apart from sale through retailers located near the schools, bus
24 | P a g e

stands, weekly markets, cinema halls, taxi stands, rural fairs etc. are
the places where they are sold briskly.
Thus, the market is scattered.

Marketing Strategy:
Generally, the market is catered to by the local manufacturers and
there are very few dominant brands. Lonavala on Mumbai-Pune
highway is famous for chikkies with more than 100 manufacturers.
But on the whole, the market is controlled by the unorganized
sector and retailers play a critical role.

Selling Expenses
A provision of 17.5% of sales income has been made mainly to take
care of selling commission for retailers and transportation costs.

Interest
Interest on Term Loan is calculated @ 12% per annum assuming
complete repayment in 3 years including a moratorium period of 1
year.

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CHAPTER - 4
DATA ANALYSIS
AND
INTERPRETATION

26 | P a g e

Projected Balance sheet

Liabilities

1st Year

2nd Year

3rd Year

Own Fund

1,07,300

1,07,300

1,07,300

Bank Loan

1,69,357

89,757

Net Profit

1,99,082

4,57,690

7,60,325

4,75,739

6,54,747

8,67,625

1Year

2nd Year

3rd Year

Machinery

1,80,000

1,60,000

1,40,000

Furniture

27,000

24,000

21,000

Cash in hand

2,68,739

4,70,747

7,06,625

TOTAL

4,75,739

6,54,747

8,67,625

Total

Asset
Fixed Asset

Current Asset

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Working Capital for 1 month

Wages and Salaries
Sr. No.

Designation

No.

Rate

Amount

1 Entrepreneur

10,000

10,000

2 Skilled Labour

8,000

8,000

3 Unskilled Labour

3,500

10,500

Total

28,500

Raw Material
Sr.No.

Description

Unit(gms)

Rate(per gm)

Amount

1 Groundnut

50

Rs. 0.60

Rs.3.00

2 Jaggery

10

Rs.0.30

Rs.0.30

3 Sugar

34

Rs.0.30

Rs.1.02

4 Liquid glucose

5.5

Rs.0.30

Rs.0.16

5 Flavour

0.5

Rs.0.1

Rs.0.50

Total

Rs.4.98

Utilities

Sr.No

Description

Unit

Power

LS

Fuel for burner

LS

Water

LS

TOTAL

Amount

1,000
7,000
1,500
9,500

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Others Expenses
Description

Amount

Postage and stationery

1,000

Transport Expenses

5,000

Insurance

500

Repair and maintenance

1,500

Advertisement

2,000

Packaging

10,000

Sundry Expenses
Telephone Expenses
Rent

1,000
500
3,500

TOTAL

25,000

Total Working Capital for 1 month

Sr.No Description
1
2
3
4

Wages and salaries

Raw materials
Utilities
Others Expenses

Total
Gross Profit Ratio

Amount
28,500
49,800
9,500
25,000
1,12,800

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1st Year

2nd Year

3rd Year

Sales

16,80,000

20,16,000

23,52,000

Gross Profit
Gross Profit Ratio

5,06,400
3.31

6,07,680
3.31

6,90,720
3.40

Particular

2500000

2000000

1500000

YEAR 1
YEAR 2
YEAR 3

1000000

500000

0
SALES

GROSS PROFIT

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Net Profit Ratio:

Particular

1st Year

2ndYear

3rdYear

Sales

16,80,000

20,16,000

23,52,000

Net Profit

1,99,082

258,608

3,02,635

Net Profit Ratio

8.43

7.79

7.77

3000000

2500000

2000000
NET PROFIT

1500000

SALES

1000000

500000

0
YEAR 1

YEAR 2

YEAR 3

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Fixed Asset To Current Ratio:

Particular

1st Year

2ndYear

3rd Year

Fixed Asset

2,07,000

1,84,000

1,61,000

Current Asset

2,68,739

4,70,747

7,06,625

Ratio

77.02

39.08

22.78

800000
700000
600000
500000
FIXED ASSET

400000

CURRENT ASSET

300000
200000
100000
0
YEAR 1

YEAR 2

YEAR 4

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Debt to Equity Ratio:

Particular

1st Year

2nd Year

Debt

1,69,357

89,757

Equity

1,07,300

1,07,300

Ratio

1.57

0.83

3rd Year

1,07,300

180000
160000
140000
120000
100000

EQUATY
DEBT

80000
60000
40000
20000
0
YEAR 1

YEAR 2

YEAR 3

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Fixed Capital
Sr..No.

Description

Amount

Furniture

30,000
Total

30,000

Machinery
Sr.No.

Description

No.

Rate

Amount

Oil-fired Furnaces

15,000

60,000

Stainless Steel Utensils

10

4,000

40,000

Large Capacity Pans

4,000

20,000

15,000

15,000

Platform Type Weighing

Scales
Electronic Weighing Scales

5,000

5,000

Drying Trays

25

2,000

50,000

Misc. Equipments

--

-----

10,000

TOTAL

2,00,000

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Trading account for 1st Year

Dr.
Particulars
To Purchase(Raw
Material)
To Utilities
To wages And Salaries
To Packaging
To Gross Profit

Cr.
Amount
Particulars
5,97,600 By Sales
1,14,000
3,42,000
1,20,000
5,06,400
16,80,000

Particulars
Amount
To Postage &Stationery
To Transportation Exp.
To Insurance
To Repair &
Maintenance
To Advertisement
To Sundry Expenses
To Rent
To Telephone charges
To Depreciation
To Interest
To Net Profit before Tax
Total

Particulars
12,000 By Gross Profit
60,000
6,000
18,000

Amounts
16,80,000

16,80,000
Amount
5,06,400

24,000
6,000
42,000
6,000
23,000
24,997
2,84,403
5,06,400

5,06,400
35 | P a g e

Profit and Loss account for 1st year

Net profit before Tax

2,84,403

Payment of Tax@30%(-)
Net Profit
Cash Profit

85,321
1,99,082

Trading account for 2nd Year

Dr.

Cr.

Particulars
To Purchase(Raw
Material)
To Utilities
To wages And Salaries
To Packaging
To Gross Profit

Amount Particulars
7,17,120 By Sales

Amounts
20,16,000

1,36,800
4,10,400
1,44,000
6,07,680
20,16,000

20,16,000

Profit and Loss account for 2nd year

Particulars
To Postage &Stationery
To Transportation
To Insurance
To Repair &
Maintenance
To advertisement

Amount
Particulars
14,400 By Gross Profit
72,000
6,000
21,600

Amount
6,07,680

28,800
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To Sundry Expenses
To Rent
To Telephone Exp.
To Depreciation
To Interest
To Net Profit

7,200
42,000
7,200
23,000
16,040
3,69,440
6,07,680

6,07,680

Net profit before Tax

3,69,440

Payment of Tax@30%(-)

1,10,832

Net Profit
Cash Profit

2,58,608

Trading account for 3rd Year

Dr.
Particulars
To Purchase(Raw
Material)
To Utilities
To wages And Salaries
To Packaging
To Gross Profit

Cr.
Amount Particulars
8,36,640 By Sales

1,64,160
4,92,480
1,68,000
6,90,720
2,35,2000
Profit and Loss account for 3rd year
Particulars
To Postage &Stationery
To Transportation

Amount
Particulars
17,280 By Gross Profit
86,400

Amounts
2,35,2000

2,35,2000
Amount
6,90,720
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charges
To Insurance
To Repair &
Maintenance
To advertisement
To Sundry Expenses
To Rent
To Telephone Exp.
To Depreciation
To Interest
To Net Profit

6,000
25,920
34,560
8,640
42,000
8,640
23,000
5,944
4,32,336
6,90,720

6,90,720

Net profit before Tax

4,32,336

Payment of Tax@30%(-)

1,29,701

Net Profit
Cash Profit

3,02,635

Repayment Schedule of Bank Loan

Loan Amount: Rs. 240000

Interest Rate: 12%

For 1 Year
Month

O/s at the
Beginning

Interest

Principal

Instalment

O/s at the
End

240000

2400

5570

7970

234430
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234430

2344

5626

7970

228804

228804

2288

5682

7970

223122

223122

2231

5739

7970

217383

217383

2174

5796

7970

211587

211587

2116

5854

7970

205733

205733

2057

5913

7970

199820

199820

1998

5972

7970

193848

193848

1938

6032

7970

187816

10

187816

1878

6092

7970

181724

11

181724

1817

6153

7970

175571

12

175571

1756

6214

7970

169357

24997

70643

95640

Repayment Schedule of Bank Loan

Loan Amount: Rs. 240000

Interest Rate: 12%

For 2nd Year

39 | P a g e

Month

O/s at the
Beginning

Interest

Principal

Installment

O/s at the
End

169357

1694

6276

7970

163081

163081

1631

6339

7970

156742

156742

1567

6403

7970

150339

150339

1503

6467

7970

143872

143872

1439

6531

7970

137341

137341

1373

6597

7970

130744

130744

1307

6663

7970

124081

124081

1241

6729

7970

117352

117352

1174

6796

7970

110556

10

110556

1106

6864

7970

103692

11

103692

1037

6933

7970

96759

12

96759

968

7002

7970

89757

10640

79600

95640

Repayment Schedule of Bank Loan

Loan Amount: Rs. 240000

Interest Rate: 12%

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For 3rd Year

Month

O/s at the
Beginning

Interest

Principal

Installment

O/s at the
End

89757

898

7072

7970

82685

82685

827

7143

7970

75542

75542

755

7215

7970

68327

68327

683

7287

7970

61040

61040

610

7360

7970

53680

53680

537

7433

7970

46247

46247

462

7508

7970

38739

38739

387

7583

7970

31156

31156

312

7658

7970

23498

10

23498

235

7735

7970

15763

11

15763

158

7812

7970

7951

12

7951

80

7951

7970

5944

89757

95701

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Project Cost
Sr.No. Description

Amount

Pre- operative Expenses

Fixed Capital

Working Capital For 1 Month

5,000
2,30,

Total

000
1,12,300
3,47,300

Means of Finance:
Sr.No. Description
1
Own Fund
2
Term Loan From Bank

%
30%
70%
Total

Amount
1,07,300
2,40,000
3,47,300

42 | P a g e

Means of Finance

Own Fund
Term Loan

CASH FLOW STATEMENT

Particulars
Inflow
Sales
Own Fund
Bank Loan
Total
Outflow
Operating Exp.
Payment of tax
Repayment of Loan
Purchase of Fixed Asset
Total
Opening Balance

1st year

2nd Year

3rd Year

16,80,000
1,07,300
2,40,000
20,27,300

20,16,000
------20,16,000

23,52,000
------23,52,000

13,47,600
85,321
95,640
2,30,000
17,58,561
2,68,739

16,07,520
1,10,832
95,640
---18,13,992
2,68,739

18,90,720
1,29,701
95,701
---21,16,122
4,70,747
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CASH
Cash in hand

2,68,739

2,02,008
4,70,747

2,35,878
7,06,625

Depreciation Schedule for 3 Year

Oil-fired Furnaces
Year
1
2
3

Opening Bal.
60,000
52,000
46,000

Rate
10%
10%
10%

Depreciation

Closing Bal.

6,000
6,000
6,000

52,000
46,000
40,000

Stainless Steel Utensils

Year

Opening Bal.

Rate

Depreciation

Closing Bal.
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1
2
3

40,000
36,000
32,000

10%
10%
10%

4,000
4,000
4,000

36,000
32,000
28,000

Large Capacity Pans

Year
1
2
3

Opening Bal.
20,000
18,000
16,000

Rate
10%
10%
10%

Depreciation
2,000
2,000
2,000

Closing Bal.
18,000
16,000
14,000

Platform Type Weighing Scales

Year
1
2
3

Opening Bal.
15,000
13,500
12,000

Rate
10%
10%
10%

Depreciation
1,500
1,500
1,500

Closing Bal.
13,500
12,000
10,500

Depreciation
500
500
500

Closing Bal.
4,500
4,000
3,500

Depreciation

Closing Bal.

Electronic Weighing Scales

Year
1
2
3

Opening Bal.
5,000
4,500
4,000

Rate
10%
10%
10%

Drying Trays
Year

Opening Bal.

Rate

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1
2
3

50,000
45,000
40,000

10%
10%
10%

5,000
5,000
5,000

45,000
40,000
35,000

Misc. Equipments
Year
1
2
3

Opening Bal.
10,000
9,000
8,000

Rate
10%
10%
10%

Depreciation
1,000
1,000
1,000

Closing Bal.
9,000
8,000
7,000

Depreciation
3,000
3,000
3,000

Closing Bal.
27,000
24,000
21,000

FURNITURE
Year
1
2
3

Opening Bal.
30,000
27,000
24,000

Rate
10%
10%
10%

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CHAPTER 5
RESEARCH
METHODOLOGY

INTRODUCTION
Research is a systematic structure of investigation undertaken in order
to discover new facts. It provides a structure for decision making. Research is
an inseparable part of human knowledge. It is a process that takes the
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assistance of the scientific methods in solving problems. Research is a way of

thinking. It clarifies the thought process. Research is undertaken in natural
and social sciences it always expects a piece of work that advances human
knowledge. Todays research has become an important activity in overall
social life. Methodology means way of doing something. Research
methodology provides a framework to conduct a research. We can say that
research methodology is a science of research. Methodology provides a way
and guiding principles for research. Hence, study of research methodology
became very important in todays academic career.

DEFINATIONS OF RESEARCH
Websters dictionary:Research is a careful of critical inquiry or examination in seeking facts
or principles, diligent investigation in order to ascertaining something
Encyclopedia of social sciences:Research is the manipulation of things, concepts or symbols for the
process of generalizing to extend, correct or verify knowledge, whether that
knowledge aids in construction of theory or in the practice of an art
John best:Research is a more systematic activity directed towards discovery and
development of an organized body of knowledge

METHODS OF DATA COLLECTION

Depending on the source, statistical data is classified under two categories:
1 Primary Data
2 Secondary Data

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1 Primary Data:
Primary data are obtained by a study specifically
designed to fulfill the data needs of the problem at hand. Such data are
original in character and are governed in large number of surveys
conducted mostly by government and also by some individuals,
institutions and research bodies. For example, data obtained in a
population census by the office of registrar general and census
commissioner, ministry of home affairs, are primary data.
2 Secondary Data:

Data which is not originally collected but rather

obtained from published and unpublished sources are known as secondary
data. For example, for the office of the general registrar and census
commissioner, the census data is primary whereas for all others, who use
such data, they are secondary. The secondary data constitute the chief
material on the basis of which statistical work is carried out in many
investigations.

ADVANTAGES TO USE THE PRIMARY SOURCE FOR

COLLECTING THE DATA:
1 Primary source shows data in regular detail.
2 It frequently defines terms and nits used.
3 The secondary source may contain mistakes due to errors in
transcription made when the figures were copied from the primary
source.

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ADVANTAGES OF SECONDARY DATA:

1 If secondary data are available, they are much quicker to obtain than
primary data.
2 It may available on some subjects where it would be impossible to
collect primary data.
DISADVANTAGES OF SECONDARY DATA:
1 There is problem in finding data which are sufficiently accurate.
2 It is difficult to find the data which exactly fit to that of present project.

METHODS OF DATA COLLECTION

The methods and the techniques that can be uses to generate the primary as
well as the secondary data are as follows:
1
2
3
4
5
6

Visiting The Lokseva Sahakari Bank Ltd.

By going through the company website on the internet.
Tele-conversation and references.
By going through the pamphlets, magazines and newspapers.
By words of mouth.
By going through the brochures and manuals provided by the bank.

DOCUMENTS REQUIRED FOR SANCTION OF LOAN FOR BUSINESS

1. Proof of identity. (Copy of sales tax/ vat/ Service tax/ Excise registration
receipt or registration under shop and establishment act or pan/ It return of
the concern or water/ Electricity municipal tax bill in the name of concern)
2. Proof of individual identity. (Copy of passport/ Voters identity card/ Photo
pan card/ Driving license/ Mapin card)
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3. Proof of residence address. (Copy of passport/ Voters identity card/ Driving

license/ Ration card/ Life insurance policy/ Electricity bill/ Telephone bill)
4. Pan number / form 60 of the concern.
5. Financial documents. (Copy of P&L a/c and Balance sheet for last two
years, Audited by a C.A and copies of it returns for the last two years)
6. Bank statement for last 6 months.
7. Partnership deed. (Required only in case of partnership firm)
8. Proof of place of business.
9. Two passport size photographs.

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CHAPTER - 6
CONCLUSION

CONCLUSION
After the study we came to the conclusion that loan sanction required too
many legal formalities to be completed and many legal documents to be submitted
to the bank but since the confectionary industry is the rising industry we can get
the loan sanctioned easily.
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From this observation we can say that chikki business can be in profit which
will enable us to pay back the loan installment on time.

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CHAPTER - 7
BIBILOGRAPHY

REFERENCES
1. Projects, preparation, appraisal, budgeting and implementation by
Prasanna Chandra.
2. Financial Management by I.M.Pandey.
3. Research Methodology by C.K.Kothari.
4. Research Methodology by Dr. Mahesh Kulkarni
5. Brochures and pamphlet provided by The Lokseva Sahakari Bank Ltd.
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WEBLINKS
1.
2.
3.
4.
5.
6.

www.justdial.com
www.yellopages.com
www.google.com
www.wikipedia.org
www.askme.com
www.yahooanswers.com

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