a project report on finance of stone crusher
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COMPANY PROFILE
NAME :Rajshree Stone Crusher
REGISTERED :213 L/6, xxxxxxxx xxxxxxxx
OFFICE NO.
FACTORY :Jamshedpur, Jharkhand,
ADDRESS Ranchi- 825418
STATUS : Private Company
PRODUCTS : Crushed Stone (Segregated into Various SizesLike 35mm, 20mm, 12mm, etc)
QUALIFICATION: BBA
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ABOUT THE COMPANY & PRODUCTS
Rajshree Stone Crusher with a desire and intention tomanufacture/produce crushed stones (size 35mm, 20mm, 12mm).
The stone crusher will crush the stone daily except in the rainy
season. This is because it is difficult & risky to transport the stones
and also very less construction work is carried. Work will be carried
for seven months while two months will be the period of storing raw
materials because after rainy season the price increases.
As construction and road building is booming in India, Stone
crushing mills have proliferated throughout India to accommodate
the huge demand for stone used in Construction of roads, bridges,
housing, industrial building construction and other cement based
products like RCC pipes, PSC poles, pre-molded slabs, frames and
beams, etc for fabrication.
Housing is a basic need of the human being as well as society.
Hence, it is receiving increased focus towards crushed stones. This
company wants to put its maiden step into crushed stone.Simultaneously, the wastage from the stone industry will be of much
use to the crushed stone and it is in the form of sand.
CRUSHED STONES:-
The demand for crushed stone will continue to grow with the Growth
of its user industry. The unit can be set up depending availability ofraw Material and major commercial centre.
Crushed stone is segregated into various sizes like 35mm,20mm, 12mm, etc for different uses.
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Crushed stone aggregates are used for construction ofroads, bridges, housing, industrial building construction
and other cement based products like RCC pipes, PSCpoles, pre-molded slabs, frames and beams, etc for
fabrication.
It is advantageous if the crushed stone unit is set up nearthe quarries where the granite boulders of various sizes are
available for the crushing unit.
The wastage from the stone industry will be of much use ofthe crushed stone unit.
Wastage of Stone:-
The wastage of the stone is in the form of sand. It has
followings features & advantages.
Best material used in construction rather than sand.Rare to purchase as it is the wastage of stones.
Costly than sand & crushed stones.
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Marketing profile
The unit is basically producing crushed stones for construction
activities. Hence the demand for crushed stones would bealways rising due to the fact of population explosion in India.
This is because as population grows, there will be the demand
for house and in order to make house or any constructive work
crushed stones are required.
Housing is a basic need of the society. Hence, it is receiving
increased focus. All the building constructions whether it is
housing or industrial construction activities requires crushed
stone. Crushed stone is also required for cement based products
like RCC pipes, PSC poles; cement concrete hollow blocks,
precast cement concrete slabs, well rings, window & door
frames and road Laing. The demand for crushed stone will
continue to grow with the growth of its user industry.
Moreover the director of the unit is well experienced, rather heis experts in the field of marketing and finance too. The
company will be planning to expand it activities in other
adjoining places too. Hence there will always be a healthy
market for the units produced. The company has studied and
analyzed the market thoroughly.
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Basic Assumptions
The property or land on which the crusher will beestablished its own property which is 2 acre.
The work shed will be constructed on 100 sq. meters whileThe office will be constructed on 5 sq. meters.
The working period will be 9 months in a year, whichinclude 26 days in a month. Two days will be holiday while
2 days will be working time on time basis in a month.
The working hours will be 8 hours per day while onholiday 4 hours per day.
It is considered that in 1 truck of boulders contains 4 ft. ofboulders (1truck=4 ft.). The ft. is considered as the height
of the truck from the boulders to be load.
Loan is sanctioned on the basis of fixed deposits kept inbank. It is assumed that 80% loan is sanctioned out of total
deposits. But loan is taken only 60% of fixed deposits that
are kept. The loan is sanctioned by the State Bank Of India.
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A) Assumptions In Preparation Of ProjectedFinancial Statements.
Sales:-Sales include sale of crushed stones (size 35mm, 20mm, 12mm) &
wastage of stone in the form of sand. Every year the gravel 35mm
& 20mm the sales is increased 18 trucks (72 ft.) every year. But
the gravel 12 mm, the sales is increased 10 trucks (40 ft.) every
year. There is no increase in sand. There is increase of Rs.50 for
35mm stone, Rs. 100 for 20 mm stone & sand while Rs. 200 for 12
mm stone per ft. every year.
Purchases:-It includes purchase of stones (boulders). In a year only in 8
months & 15 days the raw materials will be purchased. This is
because in rainy season it becomes difficult to get stones due to
flow of water in river. Cost of Purchases of stones increase Rs. 50
per ft. every year. There will be same quantity of purchases of
boulders through every year. 4 trucks or 16 ft. in a day boulders are
purchased.
Octroi & Transports:-This includes Octroi, transportation expenses incurred in the
carriage of stones to the installed plant & delivery of crushed
stones to the construction office and our direct customers. Octroi
increases by 5% every year.
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Wages & Labor Charges:-This includes payment to Skilled Workers, semi-skilled workers,
Unskilled Workers, and Security. Every year 10% salary is
increased for every labor except those labors who are working ontime basis. They have increment of 10% after 2 year and it
continues. It includes salary & wages, loading, unloading charges
paid to above.
This includes Manager/Entrepreneur remuneration & salary paid to
Accountant cum clerk. Managers salary increases Rs. 1000 every
year while accountant salary increases Rs. 500 every year.
Manufacturing Charges:-This includes cost of power, repairs & maintenance of plant &
machinery, factory overheads, labor welfare, administrative
overhead etc. 5 % is increased every year.
Administrative Expenses:-This includes expenses incurred in the administration. Every yearthis expense is raised by 10%.
Selling & Distribution Expenses:-These are estimated @ Rs. 50 per truck except sand. This is
expected that Rs. 10 per truck is increased every year. This also
includes commission paid to dealers, distribution, agents etc who
are directly or indirectly involved.
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Financial Cost:-It includes bank interest on working capital and term loan including
incidental charges.
Depreciation:-It is assumed @ 10% for land & building and 15% for other fixed
assets.
Other Expenses:-While preparing project report inflationary trend and inherent
increase or decrease is not taken into account.
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B) Assumptions In Preparation Of ProjectedBalance Sheet
Goodwill:-It is assumed that goodwill is increases 10% every year.
Debtor for goods:-It is assumed at half sales of one month of all gravels.
Sundry creditors for goods & expenses:-It is assumed at one month of purchases. Wages & labor charges,
manufacturing overheads, office & administrative expenses,
employment expenses, selling & distribution expenses.
Term loan & working capital:-The loan will be repaid in 60 months after a moratorium of yearly
basis.
Closing stock:-Closing stock includes the finished products.
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Rajshree Stone CrusherJamshedpur, Jharkhand
Ranchi- 825418
COST OF PRJOECT AND SOURCES OF FINANCE
A.Sources Of FinanceS. no. Particulars Amount
(Rs)
01 Self Contribution 1000000
02 Term loan(proposed) 1500000
Total capital 2500000
B. Cost of Project
S. no Particulars Ann(pg) Amount (Rs)1. Cost of license & registration charges 43000
2 Land 200000
3 Construction of work shed 120000
4 Construction of office 20000
5 Purchase of machinery & equipments A-I (24) 880000
6 Furniture & office equipment 40000
7 Truck 9000008 Electrical fittings 60000
9 Erection & commissioning 100000
Working capital 137000
Total capital employed 2500000
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Rajshree Stone CrusherJamshedpur, Jharkhand
Ranchi- 825418
Projected profitability statement
Particulars Ann(pg) 2010-
2011
2011-
2012
2012-
2013
2013-2014 2014-20
A: IncomeSales
Other income
B: Cost of salesPurchases
Freight & OctroiWages & labor charge
Manufacturing overheads
Add : Opening Stock
Less : Closing Stock
Sub Total (B)
C. Gross Profit (A-B)D. Payment To Staff
E. Office & Administrative
F. Selling & DistributionG.preliminaryexp.Writen off
H. Bank Interest
I. Depreciation
J. Net Profit Before Tax
K. Income Tax (30%)
L. Profit after Tax
Cash Profits
A-II (22)
A-III (24)
A-IV (26)
A-V (28)
A-IV (27)
A-VI(31)
A-VII
4014000
---------
4617800
-------
5307800
--------
5938200
------
6654800
------
4014000 4617800 5307800 5938200 6654800
2856000
25000
325840127500
3060000
26250
284140133875
3264000
27562
312554140568
3468000
28940.60
343809.40147597
3672000
30387.70
378190.3154977
3334340 3504265 3744684 3988347 4235555
--------
386400
386400
828000
828000
1324800
1324800
1876800
1876800
2484000
2947940 3062665 3247884 3436347 3628355
1066060 1555135 2059916 2501853 3026445
63000
2500
3240011000
172500
296000
64500
2750
4164011000
13800
214900
66000
3025
5180011000
103500
187035
67500
3327
6288011000
69000
162912
69000
3660
7488011000
34500
219529
488660 1206545 1637556 2125234 2811876
146598 361963 491266 637570 843562
342062 844582 1146290 1487664 1968314
649062 1070482 1344325 1661576 2198843
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Rajshree Stone CrusherJamshedpur, Jharkhand
Ranchi- 825418
Projected Balance Sheet as at 31stMarch
Particulars 2011 2012 2013 2014 2015LIABILITIES
Capital & Reserves
Secured loansTerm Loan
Unsecured Loans & Advances
Sundry Creditors For Goods
Sundry Creditors For Expenses
Total
ASSETS
GoodwillFixed Assets
Sundry Debtors
Preliminary Expenses
Stock in TradeRaw materials
Finished goods
Cash & Bank Balances
Total
1342062
1500000
----------
234291
144291
2186644
1200000
---------
249272
149273
3332934
900000
---------
263224
163225
4820598
600000
-----------
257395
197395
6788912
300000
-----------
256817
226817
3220644 3785189 4659383 5875388 7572546
430001924000
221800
44000
386400
644400
-42956
473001709100
358700
33000
828000
1086400
-277311
520301522065
410355
22000
1324800
1269600
-58533
624361359153
572100
11000
1876800
1137600
856299
74923150624
642422
00000
2484000
431500
3789077
3220644 3785189 4659383 5875388 7572546
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Rajshree Stone CrusherJamshedpur, Jharkhand
Ranchi- 825418
Projected Fund Flow Statement
Particulars 2011 2012 2013 2014 2015
Sources Of Funds
Net profit after tax
Add: depreciation &
preliminary expenses
Cash profit
Term loan
Decrease in working capital
Margin money
TOTAL
Application Of Funds
Addition of fixed assets
Increase in working capital
Preliminary expenses incurred
Repayment of term loan
TOTAL
342062
307000
844582
225900
1146290
198035
1487664
173912
1968314
230529
649062
1500000
---------
1213000
1070482
1200000
---------
-252238
1344325
900000
----------
476448
1661576
600000
---------
937433
2198843
300000
----------
3940522
3362062 1897244 2819773 4288009 7528365
2220000
831062
11000
300000
0000000
1597244
00000
300000
0000000
2519773
00000
300000
0000000
3988009
00000
300000
365000
6863365
00000
300000
3362062 1897244 2819773 4288009 7528365
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Rajshree Stone CrusherJamshedpur, Jharkhand
Ranchi- 825418
Capital & Reserve
Particulars 2010 2011 2012 2013 2014
Add: Introduced
Add : Net Profit
Less: Withdrawal
Closing Balance
1000000
342062
------------
----------
844582
----------
-----------
1146290
-----------
----------
1487664
-----------
-----------
1968314
------------
1342062 2186644 3332934 4820598 6788912
Preliminary Expenses
Particulars 2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
Opening balanceMarket survey exp
Professional fees
Less : Written off
Balance carried to
balance sheet
----------25000
30000
44000--------
----------
33000---------
---------
22000--------
---------
11000---------
---------
55000
11000
44000
11000
33000
11000
22000
11000
11000
11000
44000 33000 22000 11000 00000
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Rajshree Stone CrusherJamshedpur, Jharkhand
Ranchi- 825418
Calculation Of Consolidated Debt Service Coverage Ratio
Particulars 2011 2012 2013 2014 2015
Profit Available For Debt
Servicing
Net profit after tax
Interest on long term debtsTotal (A)
Total loan installments &
Interest (B)
Debt service coverage ratio(A/B)
Average Debt Service
Coverage Ratio
342062
172500
844582
138000
1146290
103500
1487664
69000
1968314
34500514562 982582 1249790 1556664 2002814
472500 438000 403500 369000 334500
1.08 2.24 3.09 4.21 5.98
3.32
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Rajshree Stone CrusherJamshedpur, Jharkhand
Ranchi- 825418
Annexure I: Cost Of Machine
S. no. Particulars Quantity Amount(RS)
1 Jaw crusher 400*225 mm with 25 HP Motor 1 225000
2 Jaw Crusher 350*150 mm with 15 HP Motor 1 200000
3 Rotary Screen for 35, 20, 12 mm with 10 HP Motor 1 60000
4 Belt Conveyor with 15 HP Motor 2 120000
5 Cyclonic Dust Collector With 12 HP Motor 1 225000
6 Spares, Jaws, Jigs, Fixtures & Tools 1 set 50000
Total Cost Of Machine 880000
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Rajshree Stone CrusherJamshedpur, Jharkhand
Ranchi- 825418
Annexure II: Details of Sales
Particulars Years
2010-2011 2011-2012 2012-2013 2013-2014 2014-2015
A.35 mmQuantity (truck)
(ft.)
Rate (truck)(ft.)
TOTAL(A)
B: 20 mm
Quantity (truck)(ft.)
Rate (truck)(ft.)
TOTAL(B)
C: 12 mm
Quantity (truck)
(ft.)Rate (truck)
(ft.)TOTAL(C)
207828
52001300
225900
54001350
243972
58001400
2611044
58001450
2791116
60001500
1076400 1215000 1409400 1513800 1674000
216864
6000
1500
234936
6400
1600
2521008
6800
1700
2701080
7200
1800
2881152
7600
1900
1296000 1497600 1713600 1944000 2188800
225
9007200
1800
235
9408000
2000
245
9808800
2200
255
10209600
2400
265
106010400
2600
1620000 1880000 2156000 2448000 2756000
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D: sand
Quantity (truck)
(ft.)Rate (truck)
(ft.)
TOTAL (D)
Total Sales
(A+B+C+D)
9
36
2400600
9
36
2800700
9
36
3200800
9
36
3600900
9
36
40001000
21600 25200 28800 32400 36000
4014000 4617800 5307800 5938200 6654800
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Rajshree Stone CrusherJamshedpur, Jharkhand
Ranchi- 825418
Annexure III: Details of Purchases
Particulars Years
2010-2011 2011-2012 2012-2013 2013-2014 2014-2015
Raw material:
Stones (boulder)
Quantity:
(Truck)
(ft.)
Rate :
(Truck)
(ft.)
Total Purchases
1020
4080
2800
700
1020
4080
3000
750
1020
4080
3200
800
1020
4080
3400
850
1020
4080
3600
900
2856000 3060000 3264000 3468000 3672000
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Rajshree Stone CrusherJamshedpur, Jharkhand
Ranchi- 825418
Revenue Statement of Purchases of Boulders in Month:
Month April May June Oct. Nov. Dec. Jan. Feb. Marc
h
Days In a
Month* Per
Day Purchases
30*4=
120
30*4=
120
15*4=
60
30*4=
120
30*4=
120
30*4=
120
30*4=
120
30*4=
120
30*4=
120
Total 120 120 60 120 120 120 120 120 120
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Rajshree Stone CrusherJamshedpur, Jharkhand
Ranchi- 825418
AnnexureIV (a): Details Of Wages & Labor Charges
Particulars Qty Salary Years
2010-2011 2011-2012 2012-2013 2013-2014 2014-2015
SkilledWorkers
UnskilledWorkers
Security
Labor (timebasis). 4 hrs ina day.
3
8
1
4
3000
2000
2000
Rs.40/hr
9000*9=81000
16000*9=144000
2000*12=
24000
1280*8=
10240
89100
158400
26400
10240
98010
174240
29040
11264
107811
191664
31944
12390.4
118592.1
210830.4
35138.4
13629.44
Total 325840 284140 312554 343809.4 378190.34
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Rajshree Stone CrusherJamshedpur, Jharkhand
Ranchi- 825418
Annexure IV (b): Payment to Staff
Particulars Years
2010-2011 2011-2012 2012-2013 2013-2014 2014-2015Manager/Entrepreneur
Accountantcum clerk
Total
4000*9= 36000
3000*9 =
27000
36000+1000= 37000
2700+500 =
27500
37000+1000= 38000
27500+500
= 28000
38000+1000= 39000
28000+500
= 28500
39000+1000= 40000
28500+500
= 29000
63000 64500 66000 67500 69000
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Rajshree Stone CrusherJamshedpur, Jharkhand
Ranchi- 825418
Annexure V: Details of Closing Stock of Raw Material
Particulars Years
2010-2011 2011-2012 2012-2013 2013-2014 2014-2015
Stones (boulders)
A:Opening stockQuantity (truck)
(ft.)
Rate (truck)
(ft.)
Sub Total (A)
B:Add: purchases
Quantity (truck)
(ft.)
Rate (truck)(ft.)
Sub Total(B)
C:Less : production
Quantity (truck)
(ft.)
Rate (truck)(ft.)
Sub Total(C)
-------------
------------
-------------
-------------
138
552
2800
700
276
1104
3000
750
414
1656
3200
800
552
2208
3400
850
xxxxxxxx 386400 828000 1324800 1876800
1020
4080
2800
700
1020
4080
3000
750
1020
4080
3200
800
1020
4080
3400
850
1020
4080
3600
900
2856000 3060000 326400 3468000 3672000
882
3528
882
3528
882
3528
882
3528
882
3528
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Quantity (truck)
(ft.)
Rate (truck)
(ft.)
Closing StockTotal (A+B-C)
138
552
2800
700
276
1104
3000
750
414
1656
3200
800
552
2208
3400
850
690
2760
3600
900
386400 828000 1324800 1876800 2484000
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Rajshree Stone CrusherJamshedpur, Jharkhand
Ranchi- 825418
Annexure V: Details of Closing Stock of Finished Products
Particulars Years
2010-2011 2011-
2012
2012-2013 2013-2014 2014-2015
Opening stock
A)35mmQuantity (truck)
(ft.)Rate (truck)
(ft.)
Sub Total (A)
B)20 mmQuantity (truck)
(ft.)
Rate (truck)
(ft.)
Sub Total (B)
C)12 mmQuantity (truck)
(ft.)
Rate (truck)(ft.)
Sub Total (C)
-------------
-------------
45
180
52001300
72
288
54001350
81
324
56001400
72
288
58001450
------------- 234000 388800 453600 417600
-------------------------
36144
6000
1500
54216
64001600
54216
6800
1700
36144
72001800
------------ 216000 345600 367200 259200
------------
------------
27
108
72001800
44
176
80002000
51
204
88002200
48
192
96002400
-------------- 194400 352000 448800 460800
Total (A+B+C) -------------- 644400 1086400 1269600 1137600
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Annexure VII: Details of Assets & Depreciation
Particulars 2011 2012 2013 2014 2015
Land
Opening W.D.VAdd : AdditionsLess : Deletions
Less : Depreciation
Closing W.D.V
Work shed
Opening W.D.V
Add : AdditionsLess : Deletions
Less: Depreciation (10%)
Closing W.D.V
Office
Opening W.D.V
Add : AdditionsLess : Deletions
Less: Depreciation (10%)
Closing W.D.V
Machinery
Opening W.D.V
Add : AdditionsLess : Deletions
Less: Depreciation (15%)
Closing W.D.V
Electrical fittings
Opening W.D.VAdd : Additions
Less : Deletions
Less : Depreciation (15%)
Closing W.D.V
Truck
Opening W.D.V
Add : AdditionsLess : Deletions
Less : Depreciation (15%)
Closing W.D.V
---------200000
000000
200000
---------
120000
12000
108000
--------
20000
2000
18000
---------
880000
132000
748000
--------60000
9000
51000
---------
900000
135000
765000
200000---------
---------
200000
108000
----------
10800
97200
18000
---------
1800
16200
748000
---------
74800
673200
51000---------
7650
43350
765000
---------
114750
650250
200000---------
---------
200000
97200
--------
9720
87480
16200
--------
1620
14580
673200
000000
67320
605880
4335000000
6502
36847
650250
---------
97537
552712
200000000000
000000
200000
87480
00000
8748
78732
14580
00000
1458
13122
605880
000000
60588
545292
36847000000
5527
31320
552712
--------
82906
469806
200000000000
000000
200000
78732
80000
15873
142859
13122
10000
2312
20810
545292
225000
115543
654749
3132040000
10698
60622
469806
---------
70471
399335
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Annexure VII: Details of Assets & Depreciation
Particulars 2011 2012 2013 2014 2015
Furniture & Office EquipmentOpening W.D.V
Add : Additions
Less : DeletionsLess : Depreciation (15%)
Closing W.D.V
Total AssetsOpening W.D.V
Add : AdditionsLess : DeletionsLess : Depreciation
Closing W.D.V
---------
40000
600034000
----------2220000
----------
2960001924000
34000
--------
510028900
1924000----------
----------
2149001709100
28900
000000
433524565
1709100----------
----------
1870351522065
24565
---------
368520880
1522065----------
-----------
1629121359153
20880
10000
463226248
1359153365000
----------
2195291504624
-
8/13/2019 A Project Report on Finance of Stone Crusher
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