NAC Machines

Think beyond the world.........

Paper cup making business start-up projected financial report

NAC Machineries
PAPER CUP MANUFACTURING UNIT FINANCIAL REPORT
PROJECT COST Rs.
1. PAPER CUP MACHINERY   550000
2. WORKING CAPITAL  250000
3. PRE-OPERATING EXPENSES 50000
TOTAL COSTS 850000
MEANS OF FINANCE
1. OWN FUND   255000
2. LOAN  @ 70% 595000
TOTAL FUNDS 850000
* CC limits treat as Term loan with monthly repayment
NAC Machineries
Paper Cup Manufacturing business - Projected Financial Statement
I YEAR II YEAR III YEAR IV YEAR V YEAR
Paper Cups PRODUCTION
PER HOUR 3000 3000 3000 3000 3000
PRODUCTION  HOURS 10 10 10 10 10
TOTAL PRODUCTION 8640000 8640000 8640000 8640000 8640000
A. INCOME   2764800 2903040 3048192 3200602 3360631.7
Avg. Income per Paper cup 0.32 0.34 0.35 0.37 0.39
B. EXPENSES
VARIABLE COST
RAW MATERIAL COST 1771200 1859760 1952748 2050385 2152905
PRINTING & CUTTING COST 64800 66744 68746 70809 72933
DISTRIBUTION EXPENSES 51840 52877 53934 55013 56113
PACKING EXPENSES 60480 63504 66679 70013 73514
ELECTRICITY CHARGES 25920 26698 27499 28323 29173
TOTAL 1974240 2069582 2169606 2274544 2384638
SEMI-VARIABLE COST
CUP MACHINE  MAINTENANCE 42000 50400 60480 72576 87091
OTHER EXPENSES 60000 63000 66150 69458 72930
STAFF SALARIES 132000 141240 151127 161706 173025
TOTAL 234000 254640 277757 303739 333047
TOTAL EXPENDITURE 2208240 2324222 2447363 2578283 2717685
Avg. Expns per paper cup 0.26 0.27 0.28 0.30 0.31
C. PROFIT BEFORE DEPRECIATION 556560 578818 600829 622319 642947
DEPRICIATION @ WDV 120000 96000 76800 61440 49152
D. BROFIT BEFORE INTEREST 436560 482818 524029 560879 593795
LOAN INTEREST   70260 54790 39320 23850 8380
E. NET PROFIT 366300 428028 484709 537029 585416
NAC Machineries
Paper Cup Manufacturing business - Projected Financial Statement
I YEAR II YEAR III YEAR IV YEAR V YEAR
Rs. Rs. Rs. Rs. Rs.
G. PROFIT BEFORE TAXES 366300 428028 484709 537029 585416
H  TAXATION ON MAT @ 15% 54945 64204 72706 80554 87812
I   PROFIT AFTER DEP, INTEREST & TAX 311355 363824 412003 456475 497603
L. NET CASH ACCRUALS 431355 459824 488803 517915 546755
D S C R CALCULATION:
M. Net Cash Accrual & Interest  501615 514613 528122 541764 555135
N. Loan Repayment 119000 119000 119000 119000 119000
O. Loan Repayment & Interest  189260 173790 158320 142850 127380
P. D S C R [M/O] 2.65 2.96 3.34 3.79 4.36
AVERAGE RATIO  3.42
NAC Machineries
PAPER CUP MAKING BUSINESS - PROJECTED CASH FLOW STATEMENT
Pre.op I YEAR II YEAR III YEAR IV YEAR V YEAR
A. SOURCE OF FUNDS:
1.LOAN 595000
2.OWN FUND 255000
Profit before Int.
But after Dep.(E)  436560 482818 524029 560879 593795
Increase in Sundry Creditors 49594 59512 74204 84066
Non-Cash Items:
Depreciation 120000 96000 76800 61440 49152
TOTAL 850000 556560 628411 660341 696523 727013
B. APPLICATION OF FUNDS I YEAR II YEAR III YEAR IV YEAR V YEAR
PAPER CUP MACHINE COST 550000
PRE-OPERATING EXPENSES 50000
LOAN REPAYMENT: 119000 119000 119000 119000 119000
BANK INTEREST: 70260 54790 39320 23850 8380
TAXATION 54945 64204 72706 80554 87812
INVESTMENT & DEPOSIT 30000 39000 42900 47190 51909
INCREASE IN STOCKS 138240 81285 85349 89617 94098
INCREASE IN DEBTORS 55296 58061 60964 64012 67213
TOTAL 600000 467741 416340 420239 424223 428411
Surplus 88819 212071 240102 272300 298602
Opening Balance 250000 250000 338819 550891 790993 1063293
Closing Balance 338819 550891 790993 1063293 1361895
NAC Machineries
PAPER CUP MANUFACTURING UNIT - PROJECTED BALANCE SHEET
I YEAR II YEAR III YEAR IV YEAR V YEAR
SOURCE OF  FUNDS
A. CAPITAL 566355 930179 1342182 1798657 2296260
B. LOAN FUNDS 476000 357000 238000 119000 -
C. CURRENT LIABILITIES - 49594 109106 183310 267376
1042355 1336773 1689288 2100967 2563636
APPLICATION OF FUNDS
ASSETS 480000 384000 307200 245760 196608
STOCK IN HAND 138240 219525 304874 394491 488589
ADVANCES, CASH & BANK BALANCE 368819 619891 902893 1222383 1572894
OTHER CURRENT ASSETS 55296 113357 174321 238333 305545
1042355 1336773 1689288 2100967 2563636
LOAN REPAYMENT CALCULATION
I YEAR
MONTH OPENING   EMI CLOSING   INT
BALANCE BALANCE
APRIL 595000 9917 585083 6446
MAY 585083 9917 575167 6338
JUNE 575167 9917 565250 6231
JULY 565250 9917 555333 6124
AUGUST 555333 9917 545417 6016
SEPTEMBER 545417 9917 535500 5909
OCTOBER 535500 9917 525583 5801
NOVEMBER 525583 9917 515667 5694
DECEMBER 515667 9917 505750 5586
JANUARY 505750 9917 495833 5479
FEBRUARY 495833 9917 485917 5372
MARCH 485917 9917 476000 5264
TOTAL 119000 70260
II YEAR
MONTH OPENING   EMI CLOSING   INT
BALANCE BALANCE
APRIL 476000 9917 466083 5157
MAY 466083 9917 456167 5049
JUNE 456167 9917 446250 4942
JULY 446250 9917 436333 4834
AUGUST 436333 9917 426417 4727
SEPTEMBER 426417 9917 416500 4620
OCTOBER 416500 9917 406583 4512
NOVEMBER 406583 9917 396667 4405
DECEMBER 396667 9917 386750 4297
JANUARY 386750 9917 376833 4190
FEBRUARY 376833 9917 366917 4082
MARCH 366917 9917 357000 3975
TOTAL 119000 54790
III YEAR
MONTH OPENING   EMI CLOSING   INT
BALANCE BALANCE