Project report for Godown

Introduction

The project report for warehouse is as follows :

ndia has become self-sufficient in food grains and achieved a remarkable growth in the production of pulses, oil seeds and fibres to meet the requirements of the country.  Although  our  farming  community  toiled  hard,  the  small  and  marginal segment of farmers could not get real benefit of the growth in the economy due to either non availability of adequate storage infrastructure within the vicinity of production areas poor access to the godowns.  This situation has forced them to dispose    the    produce    at    farm    gate    at    a    price    determined    by    the middlemen/merchants/commission agents.  Only a handful of influential farmers who have the infrastructure to overcome the market fluctuations, could derive the benefits.Further,  as  the  small  and  marginal  farmers,  who  generally  remain  outside  the purview of formal financing institutions depends heavily on the borrowed money from money lenders for the agricultural operations...

Market potential & Strategy

The demand drivers considered for the warehousing market are the manufacturing and consumption sectors. The manufacturing sector-led demand comprises the requirements arising from the need for the storage of raw materials and finished products from industries such as automobiles, cement and food processing, among others. In terms of consumption-led demand, all product categories, ranging from apparel and footwear to home and lifestyle, have been considered. The  Indian  logistics  industrywas  estimated  to  be approximately $160  bn in FY17.  The  key segments includeroad,  rail,  coastal, warehousing,  cold  chain  and  container  freight  stations  and  inland  container  depots  (CFS/  ICD). The domestic  logistics market  is  expected  to grow  at  a CAGR  of  approximately 10%. Indian  logistics  market  is  expected  to  be  driven  by  the growth  in  the  manufacturing,  retail,  FMCG  and  e-commerce  sectors.  Development of  logistics-related  infrastructure such  as  dedicated  freight  corridors,logistics  parks,  free  trade  warehousing  zones,  and  container  freight  stations  are expected  to  improve  efficiency...

PROJECT REPORT

Godown

Address

Introduction

The project report for warehouse is as follows :

ndia has become self-sufficient in food grains and achieved a remarkable growth in the production of pulses, oil seeds and fibres to meet the requirements of the country.  Although  our  farming  community  toiled  hard,  the  small  and  marginal segment of farmers could not get real benefit of the growth in the economy due to either non availability of adequate storage infrastructure within the vicinity of production areas poor access to the godowns.  This situation has forced them to dispose    the    produce    at    farm    gate    at    a    price    determined    by    the middlemen/merchants/commission agents.  Only a handful of influential farmers who have the infrastructure to overcome the market fluctuations, could derive the benefits.Further,  as  the  small  and  marginal  farmers,  who  generally  remain  outside  the purview of formal financing institutions depends heavily on the borrowed money from money lenders for the agricultural operations. Not only the borrowings are at an unreasonably high rate of interestbut they are forced to sell their produce immediately after the harvest at very lowrate. Thus, the farmers lose heavily on their  investments.  This  vicious  cycle  is  recurring  year  after  year  making  the farmers poorer. The creation of small storage facilities, through construction of grain godowns, having a capacity ranging from 50 MT to 250 MTin villages may be aremedy for the farmers, who not only can store their own produce, but also provide storage space for rentals.  To such farmers who store their produce for rents  should  have  access  to  pledge  loan  against  warehouse  receipts  from financial institutions.

Market potential & Strategy

The demand drivers considered for the warehousing market are the manufacturing and consumption sectors. The manufacturing sector-led demand comprises the requirements arising from the need for the storage of raw materials and finished products from industries such as automobiles, cement and food processing, among others. In terms of consumption-led demand, all product categories, ranging from apparel and footwear to home and lifestyle, have been considered. The  Indian  logistics  industrywas  estimated  to  be approximately $160  bn in FY17.  The  key segments includeroad,  rail,  coastal, warehousing,  cold  chain  and  container  freight  stations  and  inland  container  depots  (CFS/  ICD). The domestic  logistics market  is  expected  to grow  at  a CAGR  of  approximately 10%. Indian  logistics  market  is  expected  to  be  driven  by  the growth  in  the  manufacturing,  retail,  FMCG  and  e-commerce  sectors.  Development of  logistics-related  infrastructure such  as  dedicated  freight  corridors,logistics  parks,  free  trade  warehousing  zones,  and  container  freight  stations  are expected  to  improve  efficiency. The  industry  is  dominated  by  transportation,  which  accounts  for over85%of  total value, and its share is expected to remain high over the next fewyears. The sector provides employmentto more than 22 million people. Improving logistics sector has significant bearing onexports and media sourcesestimatethat a 10?crease in indirect logistics cost could potentially increase 5-8% of exports.

Project at a glance

Name & Address of Unit

Warehouse

Address

Details of unit
Email : youremail@gmail.com
Phone : 000000
Constitution : Proprietership
Total project cost : *******
Fixed Capital : *******
Working Capital : *******
Total Bank loan : *******
Promoter(s) contribution : *******
Term loan : *******
Working capital loan : *******
Name & address of promoter(s)
Name : Your name
Designation : Proprietor
Category : General

Project Feasibility Ratio

Debt Service Coverage Ratio (Average) :1.87
Current ratio (Average) :2.63
Year 1Year 2Year 3Year 4Year 5
Current ratio 1.53 2.06 2.62 3.19 3.76
Quick ratio 1.13 1.56 2.10 2.64 3.18
Interest coverage ratio 3.87 5.55 7.00 9.48 14.71
Debt equity ratio 2.863 2.080 1.528 1.020 0.542
TOL/TNW 3.02 1.45 0.79 0.43 0.21
DSCR 1.65 1.86 1.90 1.94 1.97
Gross profit Sales Percentage % 29.23 % 28.54 % 28.18 % 27.86 % 27.50 %
Net profit Sales Percentage % 10.84 % 10.56 % 11.10 % 11.57 % 11.90 %
BEP in % of installed capacity % 49.90 % 27.12 % 27.12 % 27.12 % 27.12 %
BEP in sales of Rs 2,620,800.00 1,840,695.65 1,972,173.91 2,103,652.17 2,235,130.43
Return On Capital Employed 0.26 0.34 0.34 0.33 0.33

Project Feasibility graph

Revenue v/s Expense Expense Splitup
 
Revenue
 
Expense
Net profit Sales % Quick ratio

Project Cost

Sl. no Item Amount Rs
1 Building *******
2 Land *******
3 Cooling towers *******
4 crates *******
5 Electrification *******
6 Preliminary expenses *******
7 Working Capital *******
Total *******

 

Working Capital Computation

Sl. no Item Amount Rs
1 Consumables / stock in hand *******
2 Work in progress *******
3 Finished goods *******
4 Working expense. *******
5 Receivables/Sundry debtors *******
6 Payables *******
7 Total working capital *******
8 Own Contribution *******
9 Working capital loan *******

Annual Sales / Revenue

Sl. no Item Rate Quantity Unit Total Rs
1 Revenue from storage space ******* X 30000 Square feet *******
Total *******

Total Yearly Expense

Sl. no Item Amount Rs
1 Salary *******
2 Accounts and admin *******
3 Repairs & Maintanance *******
4 Electricity *******
5 Office expense & utilities *******
Total *******

Application of Fund

Sl. no Item Subsidy % No. Rate Amount Rs
1 Building ******* 1 ******* *******
2 Land ******* 1 ******* *******
3 Cooling towers ******* 1 ******* *******
4 crates ******* 1 ******* *******
5 Electrification ******* 1 ******* *******
6 Preliminary expenses ******* 1 ******* *******
Total Investment *******
Total Subsidy *******
Net Investment *******

Means of Finance

Sl. no Item Amount
1 Term Loan *******
2 Working capital Loan *******
3 Total loan *******
4 Term Loan contribution *******
5 Working capital contribution *******

Profitability Statement

Year 1(!*) Year 2 Year 3 Year 4 Year 5
Revenue from operation
Sales ***** ***** ***** ***** *****
Add :
Closing stock 0.00 0.00 0.00 0.00 0.00
Total ***** ***** ***** ***** *****
Less :
Opening stock 0.00 0.00 0.00 0.00 0.00
Stock purchase ***** ***** ***** ***** *****
Salary ***** ***** ***** ***** *****
Repairs and maintenance charges ***** ***** ***** ***** *****
gas ***** ***** ***** ***** *****
ELECTRICITY bill ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Gross profit ***** ***** ***** ***** *****
Less :
Rent ***** ***** ***** ***** *****
Telephone/Postal &internet charge ***** ***** ***** ***** *****
Total ***** 0***** ***** ***** *****
Depreciation ***** ***** ***** ***** *****
Interest on TL ***** ***** ***** ***** *****
Interest on WC ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Profit before tax ***** ***** ***** ***** *****
Income Tax ***** ***** ***** ***** *****
Profit after tax ***** ***** ***** ***** *****

Cash flow statement

Cash Inflow Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
Capital 0.63 0.00 0.00 0.00 0.00 0.00
Subsidy 0.00 0.00 0.00 0.00 0.00 0.00
Termloan ***** 0.00 0.00 0.00 0.00 0.00
Profit before tax with interest 0.00 ***** ***** ***** ***** *****
Increase in WC loan 0.00 0.00 0.00 0.00 0.00 0.00
Depreciation 0.00 ***** ***** ***** ***** *****
Increase in Current liability 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Inflow ***** ***** ***** ***** ***** *****
Cash Outflow
Fixed Assets ***** ***** ***** ***** ***** *****
Increase in Current asset 0.00 0.00 0.00 0.00 0.00
Interest on TL 0.00 ***** ***** ***** ***** *****
Interest on WC 0.00 0.00 0.00 0.00 0.00 0.00
Income Tax 0.00 ***** ***** ***** ***** *****
Decrease in Term loan ***** ***** ***** ***** *****
Drawing 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Outflow ***** ***** ***** ***** ***** *****
Opening balance ***** ***** ***** ***** ***** *****
Net Cashflow 0.00 ***** ***** ***** ***** *****
Closing balance 0.00 ***** ***** ***** ***** *****

Balance sheet

Liability Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
A. Share holders funds
Capital ***** ***** ***** ***** ***** *****
Reserve & Surplus 0.00 ***** ***** ***** ***** *****
B.Non current Liabilities
Termloan ***** ***** ***** ***** ***** *****
C.Current Liabilities
Working capital loan 0.00 0.00 0.00 0.00 0.00 0.00
Account payable 0.00 0.00 0.00 0.00 0.00
Total Liability ***** ***** ***** ***** ***** *****
Asset
A. Non current Assets
Fixed Assets ***** ***** ***** ***** ***** *****
B. Current Assets
Inventory 0.00 0.00 0.00 0.00 0.00 0.00
Trade receivables 0.00 0.00 0.00 0.00 0.00 0.00
Cash and cash equivalence ***** ***** ***** ***** ***** *****
Total Asset ***** ***** ***** ***** ***** *****

Repayment of Term loan

Year Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end
1 1 ***** ***** ***** ***** *****
1 2 ***** ***** ***** ***** *****
1 3 ***** ***** ***** ***** *****
1 4 ***** ***** ***** ***** *****
1 5 ***** ***** ***** ***** *****
| | | | | | |
| | | | | | |
5 56 ***** ***** ***** ***** *****
5 57 ***** ***** ***** ***** *****
5 58 ***** ***** ***** ***** *****
5 59 ***** ***** ***** ***** *****
5 60 ***** ***** ***** ***** *****

Debt Service Coverage Ratio

Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Receipts
a).Net Profit 0.00 0.00 0.00 0.00 0.00
b).Depreciation 0.00 0.00 0.00 0.00 0.30
c).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
Repayments
a).Loan Principal 0.00 0.00 0.00 0.00 0.00
b).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
DSCR 0.00 0.00 0.00 0.00 0.00

Depreciation

Particulars Rate Year 1 Year 2 Year 3 Year 4 Year 5
Building 0.00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Computers/ Printers /Photocopier/Electronic gadget 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Furniture & fixtures 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Racks & storage/Interior works 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new item 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Air-conditioning 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Other investments 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Total less depreciation 0.00 0.00 0.00 0.00 0.00
Total written down value 0.00 0.00 0.00 0.00 0.00

Conclusion

The project as a whole describes the scope and viability of the Trading industry and mainly of the financial, technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good return on capital investment. When analyzing the social- economic impact, this project is able to generate an employment of 5 and above. It will cater the demand of Trading and thus helps the other business entities to increase the production and service which provide service and support to this industry. Thus more cyclic employment and livelihood generation. So in all ways, we can conclude the project is technically and socially viable and commercially sound too.

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