12.

FINANCIAL ASPECTS:
(i) FIXED CAPITAL
(a) Land at Khurdha Industrial Estate @Rs.30,00,000/- per acre
6000 sq ft = Rs.4,14,000/-

(b) Building:
Sl No Description Area in sq ft Cost / sq ft Total Cost
1 Working Shed 800 Rs.1000/- 8,00,000/-
2 Raw Material Shed 800 Rs.1000/- 8,00,000/-
3 Storage Shed 800 Rs.1000/- 8,00,000/-
4 Office 400 Rs.1000/- 4,00,000/-
Total 2800 Rs.28,00,000/-
Total Rs.32,14,000/-
(ii) MACHINERY & EQUIPMENT
(a) Production Unit
Sr. No. Description of Machines Qty. (Nos.) Value (Rs.)
(i) Rectifier single phase DC Output,
200 Amp 6 Volt complete with
meter panel etc. 1 75,000/-
(ii) Cleaning/Swilling tank MS 2 x 2 x 2 2 15,000/-
(iii) Nickel plating tank 1 30,000/-
Size 3 x 3 x 3 MS PVC with electrode pipe & immersion heater
(iv) Etching Tank 2 x 2 x 2 MSRL
with Lipduct and blower arrangement 1 25,000/-
(v) Gold plating tank 3x3x3 1 25,000/-
MS PVC with Lipduct and blower arrangement
(vi) Buffing Machine single phase 220 to
240 volt, RPM 1440 with accessories 1 15,000/-
(vii) Miscellaneous machines PP Tubes, Jigs etc. L.S. 35,000/-
(viii) Pollution control equipment exhaust system etc. L.S. 1,25,000/-
(b) Testing Equipment 25,000/-
(c) Electrification and Installation charges @ 10% of cost of Machinery
and Equipment 37,000/-
(d) Total cost of Machinery and equipment 4,07,000/-
 8
(e) Total cost of Office equipment 63,000/-
Total : 4,70,000/-
========
13. WORKING CAPITAL (Per Month)
A. Staff and Labour
-----------------------------------------------------------------------------------------------
Designation Nos. Salary (Rs.) Total (Rs.)
-----------------------------------------------------------------------------------------------
Chemist/Production Manager 1 15,000/- 15,000/-
Supervisor 1 10,000/- 10,000/-
Clerk-cum-Typist 1 7,500/- 7,500/-
Accountant 1 10,000/- 10,000/-
Skilled Worker 1 10,000/- 10,000/-
Unskilled Worker 2 7,500/- 15,000/-
Peon-cum-Watchman 1 10,000/- 10,000/-
------------
Total : 77,500/-
Perquisites @ 15% of salary 11,625/-
------------
Total : 89,125/-

B. Raw Material

-----------------------------------------------------------------------------------------------
Sr. No. Particulars Qty. Rate/kg. Value (Rs.)
(Rs.)
-----------------------------------------------------------------------------------------------
1. Pure Gold 250 Gms. 30 Lacs 7,50,000/-
2. Potassium Cyanide 7 Kgs. 800/- 5,600/-
3. Caustic Potash 10 Kgs. 300/- 3,000/-
4. Potassium Sulphate 1 Kg. 500/- 500/-
5. Miscellaneous Chemicals L.S. 20,000/-
-------------
Total : 7,79,100/-
C. Utilities

Power 15 KW @ Rs. 8.00/unit 1,20,000/-

Water 5,000/-
1,25,000/-
 9

D. Other Contingent Expenses

Postage & Stationery .. 2,500/-

Telephone .. 2,500/-
Consumable Store .. 5,000/-
Repair & Maintenance .. 10,000/-
Transportation charges .. 5,000/-
Advertisement & Publicity .. 5,000/-
Insurance .. 5,000/-
Miscellaneous Expenses .. 10,000/-
-----------
Total : 45,000/-
14. TOTAL WORKING CAPITAL (Per Month)
= (A + B + C + D )
= 89125 + 779100 + 125000 + 45000
= 10,38,225

15. TOTAL CAPITAL INVESTMENT

Fixed Capital = (i+ii)
= 3214000 + 470000
= Rs. 36,84,000/-

Working Capital for 2 months

= Rs. 10,38,225/- x 2
------------------
Total = Rs.57,60,450/-
===========
 10
16. FINANCIAL ANALYSIS:
Cost of production (Per Year)
- Total recurring cost per year 1,24,58,700/-
- Depreciation on building @ 5% 56,250/-
- Depreciation on machinery & Equipment@ 20% 94,000/-
- Interest on total capital investment @ 14% 8,06,463/-
---------------
Total Cost of Production 1,34,99,163/-

Sales/Turnover (Per Year)

Item Qty. Rate (Rs.) Value (Rs.)

Jewelry Gold Plating 650 Sq. meters 15000/- 97,50,000/-

Gold Plating 2 Lacs No. Optical 30/- 60,00,000/-

Frames

Net Profit (Per Year)

Turnover Cost of Production Profit (Rs.)

1,57,50,000/- 1,34,99,163/- 22,50,837/-

Net Profit Ratio = Net Profit x100

Turnover
= 22,50,837x 100 = 16.67%
1,57,50,000
Internal Rate of return = Net Profit per year x 100
Total Investment

= 22,50,837 x 100 = 39 %
57,60,450
Break-even point (% of total production envisaged)
Fixed Cost
(a) Depreciation of machineries & equipment = 94,000/-
(b) Depreciation of building = 1,40,000/-
(c) Interest on total capital investment = 8,06,463/-
(d) Insurance = 1,00,000/-
(e) 40% of salary and wages = 4,27,800/-
(f) 40% of other contingent expenses = 2,16,000/-
--------------
Total Fixed Cost (FC) = 17,84,263/-
=========

B.E.P. = Fixed Cost x 100

Fixed Cost + Net Profit

= 1784263 x 100
1784263 + 2250837

= 44.2%

Debt Service Coverage Ratio : Profit before Tax

Interest p.a.

= 2250837
806463
= 2.8