J K INDUSTRIAL & TECHNICAL CONSULTANCY SERVICE

DETAILED TECHNO-ECONOMIC
CUM PRE-INVESTMENT PROJECT
REPORT

ON
LINE OF ACTIVITY: MULTI SPECIALITY DENTAL HEALTH CARE
CENTRE AND CLINIC)

FOR

M/S DENTAL SENSE ORO DENTAL CLINIC

(LOCATION: NOWGAM BYEPASS SRINAGAR)

(Prop. DR. ZUBAIR AMIN S/O LATE MOHAMMAD AMIN

R/o SOLINA PAYEEN SRINAGAR
MARCH, 2020

Consultancy Address:

JK INDUSTRIAL & TECHNICAL CONSULTANCY SERVICE

B.O: R.NO. 3, 2ND FLOOR, AUQAF BUILDING,

SHAMPORA, NOWHATTA SRINAGAR
CELL: 600 675 1813/ 16

B.O: R.NO. 3, 2ND FLOOR, AL-KAWSAR PLAZA NEW

BUS STAND BUDGAM
CELL NO. 600 675 1812/ 19

REGD. NO. /MSME UAM NO. JK21E0000546

DATED : 05-06-2016

PLZ VISIT: WWW.

.IN
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PROJECT COST SUMMARY OF DENTAL SENSE ORO

DENTAL CLINIC
AMOUNT
S.NO PARTICULARS (RS. IN LACS)

1 PREMISES RENTED

2 PLANT & MACHINERY 5.00

CAPITAL EXPENDITURE 5.00

5 WORKING CAPITAL REQUIREMENT 1.00

6.00

MEANS OF FINANCE

1 PMEGP MARGIN 25 % 1.50

2 PROMOTERS CONTRIBUTION 5% 0.30

3 LOAN FROM BANK (95 %) 5.70

DETAILS OF LOANS

B TERM LOAN FROM BANK 4.75

1 WORKING CAPITAL FINANCE FROM BANK 0.95

2 TOTAL LOAN COMPONENT 5.70

EMPLOYMENT POTENTIAL 5 PERSONS

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INTRODUCTION

DENTISTRY
Dentistry, which is a part of stomatology, is the branch of medicine that is
involved in the evaluation, diagnosis, prevention, and surgical or non-surgical
treatment of diseases, disorders and conditions of the oral cavity, maxillofacial
area and the adjacent and associated structures and their impact on the human
body.[1] Dentistry is widely considered necessary for complete overall health.
Those who practice dentistry are known as dentists. The dentist's supporting
team aides in providing oral health services, which includes dental assistants,
dental hygienists, dental technicians, and dental therapists.

Dental surgery and treatments

Dentistry usually encompasses very important practices related to the oral cavity.
Oral diseases are major public health problems due to their high incidence and
prevalence across the globe with the disadvantaged affected more than other
socio-economic groups.[2]

Although modern day dental practice centres around prevention, many

treatments or interventions are still needed. The majority of dental treatments are
carried out to prevent or treat the two most common oral diseases which are
dental caries (tooth decay) and periodontal disease (gum disease or pyorrhea).
Common treatments involve the restoration of teeth as a treatment for dental
caries (fillings), extraction or surgical removal of teeth which cannot be restored,
scaling of teeth to treat periodontal problems and endodontic root canal
treatment to treat abscessed teeth.

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All dentists train for around 4 or 5 years at University and qualify as a 'dental
surgeon'. By nature of their general training they can carry out the majority of
dental treatments such as restorative (fillings, crowns, bridges), prosthetic
(dentures), endodontic (root canal) therapy,periodontal (gum) therapy, and
exodontia (extraction of teeth), as well as performing examinations, radiographs
(x-rays) and diagnosis. Dentists can also prescribe certain medications such as
antibiotics, fluorides, and sedatives but they are not able to prescribe the full
range that physicians can.

Dentists need to take additional qualifications or training to carry out more

complex treatments such as sedation, oral and maxillofacial surgery, and
implants. Whilst the majority of oral diseases are unique and self limiting, some
can indicate poor general health,tumours,blood dyscrasias and abnormalities
including genetic problems.

In dentistry, calculus or tartar is a form of hardened dental plaque. It is caused

by the continual accumulation of minerals from saliva on plaque on the teeth. Its
rough surface provides an ideal medium for further plaque formation, threatening
the health of the gingiva.

Brushing and flossing can remove plaque from which calculus forms; however,
once formed, it is too hard and firmly attached to be removed with a toothbrush.
Routine dental visits are necessary so that calculus buildup can be professionally
removed with ultrasonic tools and specialized sharp instruments.

A crown is a type of dental restoration which completely caps or encircles a

tooth or dental implant. Crowns are often needed when a large cavity threatens
the ongoing health of a tooth. They are typically bonded to the tooth using a
dental cement. Crowns can be made from many materials, which are usually
fabricated using indirect methods. Crowns are often used to improve the strength
or appearance of teeth. While unarguably beneficial to dental health, the
procedure and materials can be relatively expensive[2].

MARKET
The Scope of MULTI SPECIALITY DENTAL HEALTH CARE CENTRE is Jammu & Kashmir is well
defined. There is always a shortage of dental doctors with clinics in Jammu & Kashmir.
Most of the people in Jammu & Kashmir favours to visit the private clinic than to wait in
queues in Govt. hospitals for dental check ups. There is a huge problems in the Teeth of
the people of the valley due to their eating habits and smoking. The project will run
profitably in the state of Jammu and Kashmir and particularly in this area where the
spending power of the people on health issues is more when compared to other districts.

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DETAILS AND ESTIMATED COST ON PLANT AND MACHINERY

S.NO NAME RATE NO. VALUE

1. PATIENTS CHAIR WITH FOOT CONTROL,
AUTO RETURN, SWIVEL BASE, MAGNETIC
HEAD REST AND ONE YEAR WARRANTY,
CASCADE CHAIR, CASCADE 3 HP
DELIVERY UNIT WITH TOUCHPAD, SELF-
CONTAINED WATER BOTTLE SYSTEM,
CASCADE UNIT MOUNT LIGHT (WITH 300
WATT POWER SUPPLY), ASSISTANT'S
INSTRUMENTATION, CONTOURED FLOOR
BOX
STERILIZER (8") WITH CHAMBER 8"X14",
OUTSIDE DIMENSIONS 15"W X 18"D X
12.5"H, AUTO-CYCLE FEATURES AUTO-
SHUTOFF AND AUTO-VENTING
FILM PROCESSOR FITS DENT-X (PHILLIPS)
810, BASIC, XL, 9000 AND PLUS, CHAIN
DRIVEN ONLY, CORE EXCHANGE
HANDPIECES 3.14 LS 3.14
Tradition Standard Highspeed, Tru-Torc
Slowspeed with Nose Cone, 430SWL Fiber
Optic (Swivel not included), Tradition "L"
Fiberoptic with Latch Head, Titan Slowspeed,
Shorty Slowspeed (with straight nosecone,
Quiet Air Fiberoptic with Latch Head, Titan
Scaler, Low Speed without Light, Low Speed
Handpiece with Light, Low Speed Handpiece
with Light, Quick Connector without Light,
Quick Connector with Light, High Speed
Handpiece-Basic Line,
ROOT CANAL FILLING EQUIPMENTS
EXTRACTION KIT
FORCEPS, ELEVATORS, SURGICAL UNIT,
2. RVG DIGITAL X RAY UNIT 1.30 1 1.30
3. ROOT CANAL FILLING EQUIPMENTS 0.56 1 SETS 0.56
FINAL COST 5.00

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INSTALLED CAPACITY AND PRODUCTION PROGRAMME

K EEPING INTO CONSIDERATION THE CLIMATIC CONDITIONS AND OTHER FACTORS

PREVAILING IN THE VALLEY , THE OPERATIONAL HOURS SHALL BE ASSUMED AS :-

NO. OF WORKING DAYS DURING THE YEAR 300 DAYS

NO. OF WORKING HOURS DURING THE DAY 8 HOURS
NO. OF SHIFTS SINGLE

NO. OF WORKING DAYS 300

NO. OF CHAIRS/DOCTORS 1

THE RATES PER PATIENT HAVE BEEN TAKEN ON AVERAGE

S.NO PARTICULARS RATE (RS.) NO. OF REVENUE IN

PATIENTS LACS

1 CONSULTANCY FEE 100 300 30000

2 EXTRACTION PER 100 300 30000

TEETH

3 ROOT CANALING 1500 200 300000

4 SURGERY 500 150 75000

5 CROWN/BRIDGES 1500 150 225000

6 DENTURE 5000 50 250000

7 SCALING 500 300 150000

TOTAL REVENUE 1060000

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EXPENDITURE STATEMENT
PRECIOUS METALLIC ALLOYS
GOLD (HIGH PURITY: 99.7%), GOLD ALLOYS (WITH HIGH GOLD CONTENT), GOLD-
PLATINA ALLOY, SILVER-PALLADIUM ALLOY, TITANIUM

BASE METALLIC ALLOYS

COBALT-CHROMIUM ALLOY, NICKEL-CHROME ALLOY

AMALGAM
SILVER AMALGAM
TOOTH COLORED, COMPOSITE RESIN, GLASS IONOMER CEMENT, PORCELAIN (CERAMICS)
SYRINGES, NEEDLES, ZINC OXIDE CEMENT,, GIC CEMENT, ZINC POLY
CARBONATE, RESINS, ACRYLIC, ANASTHESIA, GLOWS, MASKS, APRONS
ETC.

TOTAL ESTIMATED COST AT AN AVERAGE RS. 1.00 LACS

SALES REALIZATION AND PURCHASES IN PHASED MANNER

YEAR CAPACITY SAL/WAG PURCHASE UTILITIES SALES

UTILISATION (Lacs) (lacs)

1ST 70.00 2.45 0.70 0.16 7.42

2ND 70.00 2.45 0.70 0.16 7.42

3RD 80.00 2.80 0.80 0.18 8.48

4TH 80.00 2.80 0.80 0.18 8.48

5TH 90.00 3.15 0.90 0.21 9.54

6TH 90.00 3.15 0.90 0.21 9.54

7TH 100.00 3.50 1.00 0.23 10.60

8TH 100.00 3.50 1.00 0.23 10.60

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STATEMENT OF CULCATION OF MANPOWER REQUIREMENT & THEIR

REMUNERATION
S.N
O PARTICULARS NOS SALARY PER MONTH TOTAL PER ANNUM

1 DOCTOR/MANAGER (SELF) 1 10000 1.20

DENTAL ASSISTANTS
2 (QUALIFIED) 1 5000 0.60

3 RECEPTIONIST 1 4000 0.48

4 ORDERLY 2 4000 0.96

5 3.24

ESTIMATED COST OF UTILITIES PER ANNUM

The main utilities for running the unit successfully are water and electricity.
 Power @ 1000/month Rs. 12000.00
 Generator Fuel (year) Rs. 10000.00
 Water Rs. 1000.00

Total Rs. 23000.00

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REPAIRS AND MAINTENANCE PER ANNUM.
On the basis of norms available from similar plants in actual operation provision has been made for annual
cost of maintenance and repairs for the proposed items of fixed out lay. It has been taken as 2%, 3%, 4%,
5%, 5%, 6%, 6% and 6% for 1st, 2nd, 3rd, 4th, 5th, 6th, 7thand 8th year to keep the fixed assets in working
conditions.

REPAIRS AND MAINTENANCE PER ANNUM

Year
Percentage Building P&M MFA Total R&M
1st 2% 0.00 4.40 0.30 4.70 0.09
2nd 3% 0.00 4.40 0.30 4.70 0.14
3rd 4% 0.00 4.40 0.30 4.70 0.19
4th 5% 0.00 4.40 0.30 4.70 0.24
5th 5% 0.00 4.40 0.30 4.70 0.24
6th 6% 0.00 4.40 0.30 4.70 0.28
7th 6% 0.00 4.40 0.30 4.70 0.28
8th 6% 0.00 4.40 0.30 4.70 0.28

DETAILS OF SELLING EXPENSES PER ANNUM

It is taken as 4.00 % of net sales in every year, which includes sales promotion expenses,
advertising expenses, commission to intermediaries, carriage outwards, discount,
brokerage etc. and Annual Rent.

Year
Cap. Utiliz Sales % Selling expenses/annum
1st
70.00 7.42 4 0.30
2nd
70.00 7.42 4 0.30
3rd
80.00 8.48 4 0.34
4th
80.00 8.48 4 0.34
5th
90.00 9.54 4 0.38
6th
90.00 9.54 4 0.38
7th
100.00 10.60 4 0.42
8th
100.00 10.60 4 0.42

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DETAILS OF WORKING CAPITAL REQUIREMENT AT DIFFERENT LEVELS.
S.NO IST 2ND 3RD
PARTICULARS YEAR YEAR YEAR
70.00 70.00 80.00
DAYS AMOUNT MARGIN AMOUNT MARGIN AMOUNT MARGIN
1 STOCK OF RAW
MATERIAL 0 0.00 0.00 0.00 0.00 0.00 0.00
2 STOCK OF WORK
IN PROGRESS 0 0.00 0.00 0.00 0.00 0.00 0.00
3 STOCK OF
FINISHED GOODS 0 0.00 0.00 0.00 0.00 0.00 0.00
4 SUNDRY
DEBTORS 25 0.62 0.00 0.62 0.00 0.71 0.00
5 WORKING
EXPENSES 0 0.38 0.00 0.38 0.00 0.38 0.00
6 SUNDRY
CREDITORS 0 0.00 0.00 0.00
7 WORKING
CAPITAL
REQUIREMENT 1.00 1.00 1.09
8 MARGIN MONEY 0.05 0.05 0.06
9 WORKING
CAPITAL LIMIT 0.95 0.95 1.03

INTEREST ON WORKING CAPITAL LIMIT

To meet the working capital requirements of the project, the promoters will have to
make arrangements for cash credit facilities with the bank.

RATE OF INTEREST 12.00%

YEAR INT W/C Increase Increase Current Working

w/ Cap Curr. Asse Assets Capital
1 0.12 0.95 1.00 1.00 0.95
2 0.12 0.00 0.00 1.00 0.95
3 0.13 0.08 0.09 1.09 1.03
4 0.13 0.00 0.00 1.09 1.03
5 0.13 0.00 0.00 1.09 1.03
6 0.13 0.00 0.00 1.09 1.03
7 0.13 0.00 0.00 1.09 1.03
8 0.13 0.00 0.00 1.09 1.03

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FUNDING OF CAPITAL EXPENDITURE
The total capita l investment cost of the project is estimate d at Rs. 6.00
Lakhs, which shall be financed for term loan as p er the projections made
in the report subject to furnishing of lat est cost comparat ive quotat ions
from the authorized dealers besides contribution from the promoters
during the implement ation of the project, the specif ic deta ils interalia as:

S.NO PARTICULARS AMT.(LACS)

1 PMEGP MARGIN 2.10
2 PROMOTERS CONTRIBUTION 0.30
3 LONG TERM BORROWINGS 4.75

A: Equity
The share cap ita l of the u nit has bee n fixed at Rs.0.3 0 Lakhs comprising
5 % of the tota l pro ject cost .The unit has to ra ise share capital within
this limit.

B: Term loan
Term loan requirement to the extent of Rs. 4.75 Lakhs for the purpose of purchases of
plant & machinery and misc. fixed assets shall be made available from the financial
institutions or commercial banks well operating in the valley on the basis that the unit
being proven technically feasible and financially viable. As the policies are liberal for
such type of ventures to avail packages/incentives to encourage the entrepreneurs to
promote industrial culture in the backward area of the country. The state Govt. is equally
eager to give all possible support to the development of industry in the area, where the
unit is being established more so when the Seed Capital is about 5% of the capital
formulation, which is higher than the normal requirement of funding, insisted upon by the
bankers.

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INTEREST CALCULATION
I T IS PROPOSED TO RAISE THE SUM OF R S 4.75 L ACS AS LONG TERM LOANS FROM
FINANCIAL INSTITUTIONS TO MEET THE CAPITAL COST OF THE PROJECT . F OR THE
PURPOSE OF CALCULATING THE INTEREST ON LONG - TERM LOANS AN INTEREST RATE

OF 12.00% PER ANNUM IS TAKEN INTO CONSIDERATION IN THE PROJECT REPORT .

A: INTEREST ON LONG TERM LOAN

S.NO PARTICULARS AMT.(LACS)
4.75
01. LONG TERM BORROWINGS
02. RATE OF INTEREST 12.00%
03 MORATORIUM PERIOD 12 MONTHS
04. INSTALLMENT 1.01 LACS PER ANNUM

05. REPAYMENT SCHEDULE 7 YEARS

YEAR INT T/Loan T.Loan EMI (12 MTHS) Rem. Term

Payment YEARLY Loan

1 0.55 0.46 1.01 4.29

2 0.49 0.52 1.01 3.77

3 0.42 0.59 1.01 3.18

4 0.35 0.66 1.01 2.52

5 0.26 0.74 1.01 1.78

6 0.17 0.84 1.01 0.94

7 0.06 0.94 1.01 0.00

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COMPUTATION OF DEPRECIATION CALCULATION

For the purpose of claiming extra depreciation and amortization, the preoperative expenses and
contingencies will be capitalized with the cost of fixed assets. The distribution of pre-operative expenses
and contingencies has been done approximately in proportion to the cost of all the fixed assets (except
land and site development). In the estimation of cost of sales and in books of accounts of the firm the
normally adopted practice is to depreciate the various assets by straight-line method.
For income tax purposes, the depreciation of depreciable assets (all fixed assets except land and site
development) is carried out by written down value method.

COMPUTATION OF DEPRICIATION

S.no
Particulars Building P&M MFA Total
1
Cost Price 0.00 4.40 0.30 4.70
2
Preliminary & Preoperative
exp. 0.00 0.28 0.02 0.30
Total 0.00 4.68 0.32 5.00

Depreciation under WDV method

BUILDING
Rate of depreciation 6.25%
Cost Dep WDV
1st
Year 0.00 0.00 0.00
2nd
Year 0.00 0.00 0.00
3rd
Year 0.00 0.00 0.00
4th
Year 0.00 0.00 0.00
5th
Year 0.00 0.00 0.00
6th
Year 0.00 0.00 0.00
7th
Year 0.00 0.00 0.00
8th
Year 0.00 0.00 0.00

Depreciation under WDV method

Plant & Machinery
Rate of depreciation 10%
Cost Dep WDV
1st
Year 4.68 0.47 4.21
2nd
year 4.21 0.42 3.79
3rd
Year 3.79 0.38 3.41
4th
Year 3.41 0.34 3.07
5th
Year 3.07 0.31 2.76

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6th
Year 2.76 0.28 2.49
7th
Year 2.49 0.25 2.24
8th
Year 2.24 0.22 2.01

Depreciation under WDV method

Misc. Fixed Assets
Rate of depreciation 15%
Cost Dep WDV
1st
Year 0.32 0.05 0.27
2nd
Year 0.27 0.04 0.23
3rd
Year 0.23 0.03 0.20
4th
Year 0.20 0.03 0.17
5th
Year 0.17 0.02 0.14
6th
Year 0.14 0.02 0.12
7th
Year 0.12 0.02 0.10
8th
Year 0.10 0.02 0.09

Depreciation under WDV method

Building P&M MFA Total
Rate of depreciation 6.25% 10% 15%
1st
Year 0.00 0.47 0.05 0.52
2nd
Year 0.00 0.42 0.04 0.46
3rd
Year 0.00 0.38 0.03 0.41
4th
Year 0.00 0.34 0.03 0.37
5th
Year 0.00 0.31 0.02 0.33
6th
Year 0.00 0.28 0.02 0.30
7th
Year 0.00 0.25 0.02 0.27
8th
Year 0.00 0.22 0.02 0.24
Depreciation under SL Method

Rate of depreciation
5.00% 8% 10% Total
Amount of depreciation 0.00 0.37 0.03 0.41

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Projected Profitability Statement
The annual cost of sales and profitability during the first eight years of operation of the plant is
estimated in the following table.

S.no Particulars Operating Years

1 Year of operation 1st 2nd 3rd 4th 5th 6th 7th 8th
Capacity Utilization
2 (%) 70.00 70.00 80.00 80.00 90.00 90.00 100.00 100.00
3 Sales realization 7.42 7.42 8.48 8.48 9.54 9.54 10.60 10.60

A: Cost of production
1 Raw Material 0.70 0.70 0.80 0.80 0.90 0.90 1.00 1.00
2 Salary & wages 2.45 2.45 2.80 2.80 3.15 3.15 3.50 3.50
3 Utilities 0.16 0.16 0.18 0.18 0.21 0.21 0.23 0.23
Repairs &
4 Maintenance 0.09 0.14 0.19 0.24 0.24 0.28 0.28 0.28
6 Selling expenses 0.30 0.30 0.34 0.34 0.38 0.38 0.42 0.42
7 Total 3.70 3.75 4.31 4.36 4.87 4.92 5.44 5.44
8 Gross profit 3.72 3.67 4.17 4.12 4.67 4.62 5.16 5.16
B: Financial expenses
1 Interest on term loan 0.55 0.49 0.42 0.35 0.26 0.17 0.06 0.00
2 Interest on WCL 0.12 0.12 0.13 0.13 0.13 0.13 0.13 0.13
3 Depreciation (SLM) 0.41 0.41 0.41 0.41 0.41 0.41 0.41 0.41
4 Total 1.07 1.02 0.96 0.89 0.80 0.71 0.60 0.54
5 Profit before tax 2.64 2.65 3.21 3.24 3.86 3.91 4.56 4.62
6 Taxation 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
7 Profit after tax 2.64 2.65 3.21 3.24 3.86 3.91 4.56 4.62
8 Withdrawals 1.00 1.00 1.00 2.00 2.00 2.00 3.00 3.00
9 Profit carried to B/S 1.64 1.65 2.21 1.24 1.86 1.91 1.56 1.62
10 Cumulative profit 1.64 3.30 5.51 6.74 8.61 10.52 12.08 13.70
11 Add back depreciation 0.41 0.41 0.41 0.41 0.41 0.41 0.41 0.41
12 Total cash surplus 2.05 3.70 5.91 7.15 9.01 10.92 12.48 14.11
C: Less payment
1 Term Loan 0.46 0.52 0.59 0.66 0.74 0.84 0.94 0.00
2 Withdrawals 1.00 1.00 1.00 2.00 2.00 2.00 3.00 3.00
3 Total payments 1.46 1.52 1.59 2.66 2.74 2.84 3.94 3.00

4 Net Cash accruals 0.59 2.19 4.33 4.49 6.27 8.08 8.54 11.11

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BREAK EVEN ANALYSIS

The break even point analysis of the plant is developed from the
assumed plant efficiency, fixed cost of sales, variable cost of sales and
sales revenue.

STATEMENT OF CALCULATION OF BREAK

EVEN POINT Amount (Lacs)

YEAR I II III IV V VI VII VIII

CAPACITY
UTILIZATION (%) 70.00 70.00 80.00 80.00 90.00 90.00 100.00 100.00
INCOME
Sales 7.420 7.42 8.48 8.48 9.54 9.54 10.60 10.60

Total (A) 7.420 7.42 8.48 8.48 9.54 9.54 10.60 10.60

VARIABLE COST
Consumbles
Raw Material 0.70 0.70 0.80 0.80 0.90 0.90 1.00 1.00

Salary(40%) 0.98 0.98 1.12 1.12 1.26 1.26 1.40 1.40

Utilities (70%) 0.11 0.11 0.13 0.13 0.14 0.14 0.16 0.16
Repairs & maintenance
(80%) 0.08 0.11 0.15 0.19 0.19 0.23 0.23 0.23
Selling expenses (100%) 0.30 0.30 0.34 0.34 0.38 0.38 0.42 0.42
Interest on Work. Cap.
(100%) 0.12 0.12 0.13 0.13 0.13 0.13 0.13 0.13
Total (B) 2.29 2.33 2.67 2.71 3.01 3.05 3.34 3.34

Contribution (A-B) 5.13 5.09 5.81 5.77 6.53 6.49 7.26 7.26
FIXED COSTS
Salary (60%) 1.47 1.47 1.68 1.68 1.89 1.89 2.10 2.10
Utilities (30%) 0.05 0.05 0.06 0.06 0.06 0.06 0.07 0.07
Repairs & maintenance
(20%) 0.02 0.03 0.04 0.05 0.05 0.06 0.06 0.06
Administrative Expenses
(100%) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest on Term Loan
(100%) 0.55 0.49 0.42 0.35 0.26 0.17 0.06 0.00
Depreciation (100%) 0.41 0.41 0.41 0.41 0.41 0.41 0.41 0.41
Total (B) 2.49 2.44 2.60 2.54 2.67 2.58 2.69 2.63
Break Even Point (%) 48.49 47.89 44.77 43.93 40.85 39.78 37.13 36.27
Average Break Even
Point 42.389

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PROJECTED CASH FLOW STATEMENT
The following table gives the cash flow analysis of 8 years of operation of the plant. A cash
flow statement is basically an analysis of sources of availability of funds, extent of the
utilization and availability of surplus funds or their deficit at the end of each year of operation.
Const
S.no Particulars period 1st 2nd 3rd 4th 5th 6th 7th 8th
Capacity utilization
(%) 70.00 70.00 80.00 80.00 90.00 90.00 100.00 100.00
A Source of funds
Profit before interest, tax but
1 after depn. 3.31 3.26 3.76 3.72 4.26 4.21 4.76 4.76

2 Depreciation 0.41 0.41 0.41 0.41 0.41 0.41 0.41 0.41

Increase in Share
3 Capital 0.30
Increase in Term
4 loan 4.75

5 Increase in WCL 0.95 0.00 0.08 0.00 0.00 0.00 0.00 0.00

Total (A) 5.05 4.67 3.67 4.25 4.12 4.67 4.62 5.16 5.16
B Application of funds
1 Capital expenditure 5.00
Prelim / Pre-
2 operative expenses
Increase in
3 current assets 1.00 0.00 0.09 0.00 0.00 0.00 0.00 0.00
Decrease in
4 term loan 0.46 0.52 0.59 0.66 0.74 0.84 0.94 0.00
Interest on
5 term loan 0.55 0.49 0.42 0.35 0.26 0.17 0.06 0.00

5a Interest on WCL 0.12 0.12 0.13 0.13 0.13 0.13 0.13 0.13

6 Taxation 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

7 Withdrawal 1.00 1.00 1.00 2.00 2.00 2.00 3.00 3.00

Total (B) 5.00 3.13 2.13 2.23 3.14 3.14 3.14 4.14 3.13
C Opening Balance 0.05 1.59 3.13 5.15 6.13 7.66 9.14 10.16
D Net Surplus 0.05 1.54 1.54 2.02 0.98 1.53 1.48 1.02 2.03
E Closing Balance 0.05 1.59 3.13 5.15 6.13 7.66 9.14 10.16 12.19

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J K INDUSTRIAL & TECHNICAL CONSULTANCY SERVICE
PROJECTED BALANCE SHEET
The balance Sheet of a unit is a very important feature of the working of the unit. In a healthy
unit, there is always a growth in total assets and liabilities every year. In a projected balance
Sheet on the liabilities side the reserves and surplus and on the assets side the cash and bank
balances should show healthy growth.

Year
S.no Particulars 1st 2nd 3rd 4th 5th 6th 7th 8th
A: Liabilities
0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30
1 Share Capital
Reserves & 1.64 3.30 5.51 6.74 8.61 10.52 12.08 13.70
2 Surplus
4.29 3.77 3.18 2.52 1.78 0.94 0.00 0.00
3 Term Loan
0.95 0.95 1.03 1.03 1.03 1.03 1.03 1.03
4 WCL
7.18 8.32 10.02 10.59 11.71 12.79 13.40 15.03
Total

B: Assets
5.00 4.59 4.19 3.78 3.37 2.97 2.56 2.16
1 Gross Block
0.41 0.41 0.41 0.41 0.41 0.41 0.41 0.41
2 Depreciation
4.59 4.19 3.78 3.37 2.97 2.56 2.16 1.75
3 Net Block
1.00 1.00 1.09 1.09 1.09 1.09 1.09 1.09
4 Current Assets
1.59 3.13 5.15 6.13 7.66 9.14 10.16 12.19
Cash and bank
5 balance/ Dep. Res. Fund
7.18 8.32 10.02 10.59 11.71 12.79 13.40 15.03
Total

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