Introduction

There is a huge consumption of paints and varnishes in the domestic as well as export market. A paint thinner is a solvent used to reduce the thickness of oil-based paints or clean up after their use. They can also be used to remove tar build up and other compounds. The thinner has the ability to reduce all coatings that use conventional high VOC thinners. Normally paint thinner is used to remove oil-based paint from brushes, rollers, equipment, and surfaces. However, there are many other applications and uses for paint thinner saving money and time. With the growth of the automobile market and industrialization and urbanization, a higher demand for paint industries will be generated. Varnishes are used as protective or decorative coatings. The choice of varnish depends on the hardness, inertness, flexibility, durability, resistance to darkening and solubility required. The highly durable but insoluble coatings such as polyurethane and epoxy-resin varnishes are particularly suitable where the coating is intended to be both permanent and hard-wearing sole varnish formulations, such as those of certain alkyd resins, can be baked to form a durable coating with high gloss. Tinted varnishes were widely used as a decorative coating over a metal leaf in interior decoration and for furniture, picture frames, mirrors, and sculpture. They also appear in easel painting, wall painting and on other painted surfaces.

Product / Services & process

Company is planning to produce varnish, thinners & industrial solvents to printing and packaging industries, paints, pesticides, cosmetics, washing, all type of spot removers, fabric printers, dying industries, screen printers, flexo printers, plastic shoe industries, adhesive industries, printing ink industries, and many more industries. Thinners market will witness substantial growth due to increasing paint industry. The firm is there in the market for quite a long time (especially in trading) and now planning to start the manufacturing of the same. So that the quality, up to date delivery can be ensured.

So in a nutshell, the products of the firm are as follows

1) Thinner

2) Varnish

3) Industrial composite solvents

The production process of the above is given as follows

1) The material is transported through tanker/truck by road from Kandhla.
2) The material is been unloaded in the underground tanks in the factory premises for bulk storage
3) Then this material will be transferred to the overhead small tanks by manual pumps before the process.
4) The material will be moved from overhead tanks to the process area.
5) In the processing, area material will be used by different mixtures engaged in preparing the final product.
6) The final product will be packed in 200 LTR drums for selling.

Raw materials / Consumables

The following are the raw materials used by dev chemicals

1)Hydrocarbon solvents

2) oxygenated solvents

3) Halogenated solvents

4) Fine chemicals

5) Rich solvents

6) Metalic chemicals

7) Aromatic chemicals

8) Alcoholic chemicals

9) Polymers

10) petroleum products

11) Resins

12) Heat reaction chemicals

13) Base chemicals

Pollution Status

Our company is a nonpolluting company, so we can call it as a zero pollution company

    Our Industry has:
    No wastage
    No burning
    No heating
    No Air Pollution
    No Water Pollution
    No Noise Pollution
    No Dust Pollution

Market potential & Strategy

The varnish, thinner and industrial composite solvents were used in paint ,industrial uses such as in inks for flexographic & rotogravure printing, as an extraction solvent in the production of pharmaceuticals and food industry, as a carrier solvent in herbicides,used in paints, glues etc, used in agriculture sector againts roundworm and hookworm, usedin artificial letaher, plastics, used in paper coatings, used in semi conductor industry and the list is going big . There are more usage for the products than the listed one. As we can see in our country each of the industries are getting bigger and the demand for this product will goes up. So the market is safe for the firm and the more demnd is the problem to be taken care.

Project at a glance

Name & Address of Unit

Varnish manufacturing

Address

Details of unit

Email	:	[email protected]
Phone	:	000000000
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		: Yourname
Address		: Address
Phone		: 0000000
Designation		: Proprietor
E-mail		: [email protected]

Project Feasibility Ratios

Debt Service Coverage Ratio (Average)

:1.87

Current ratio (Average)

:2.63

	Year 1	Year 2	Year 3	Year 4	Year 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

Net profit Sales %

Quick ratio

Revenue v/s Expense

Expense Splitup

Project Cost

Sl. no	Item	Amount Rs
1	Building	*******
2	Machinery	*******
3	Preliminary expenses	*******
4	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	varnish	*******	X	85800	Drum	*******
	Total					*******

Total Yearly Expense

Sl. no	Item	Amount Rs
1	Manager	*******
2	unskilled	*******
3	semi skilled	*******
4	Accounts and admin	*******
5	Sales team	*******
6	Electricity	*******
7	Office expense & utilities	*******
8	Raw materials	*******
9	Misc Expenses	*******
10	Marketing & Ads	*******
	Total	*******

Application of Fund

Sl. no	Item	Subsidy %	No.	Rate	Amount Rs
1	Building	*******	1	*******	*******
2	Machinery	*******	1	*******	*******
3	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	15.93	*****	*****	*****	*****	*****
Add :
Closing stock		*****	*****	*****	*****	*****
Total		*****	*****	*****	*****	*****
Less :
Opening stock		*****	*****	*****	*****	*****
Stock purchase	7.20	*****	*****	*****	*****	*****
Salary	3.60	*****	*****	*****	*****	*****
Repairs and maintenance charges	0.24	*****	*****	*****	*****	*****
gas	0.12	*****	*****	*****	*****	*****
ELECTRICITY bill	0.12	*****	*****	*****	*****	*****
Total		*****	*****	*****	*****	*****
Gross profit		*****	*****	*****	*****	*****
Less :
Rent	0.12	*****	*****	*****	*****	*****
Telephone/Postal &internet charge	0.12	*****	*****	*****	*****	*****
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	*****	*****	*****	*****	*****
Subsidy	*****	*****	*****	*****	*****	*****
Termloan	*****	*****	*****	*****	*****	*****
Profit before tax with interest	*****	*****	*****	*****	*****	*****
Increase in WC loan	*****	*****	*****	*****	*****	*****
Depreciation	*****	*****	*****	*****	*****	*****
Increase in Current liability	*****	*****	*****	*****	*****	*****
Total Cash Inflow	*****	*****	*****	*****	*****	*****
Cash Outflow
Fixed Assets	*****	*****	*****	*****	*****	*****
Increase in Current asset		*****	*****	*****	*****	*****
Interest on TL	*****	*****	*****	*****	*****	*****
Interest on WC	*****	*****	*****	*****	*****	*****
Income Tax	*****	*****	*****	*****	*****	*****
Decrease in Term loan		*****	*****	*****	*****	*****
Drawing	*****	*****	*****	*****	*****	*****
Total Cash Outflow	*****	*****	*****	*****	*****	*****
Opening balance	*****	*****	*****	*****	*****	*****
Net Cashflow	*****	*****	*****	*****	*****	*****
Closing balance	*****	*****	*****	*****	*****	*****

Balance sheet

Liability	Pre operative period	Year 1	Year 2	Year 3	Year 4	Year 5
A. Share holders funds
Capital	*****	*****	*****	*****	*****	*****
Reserve & Surplus	*****	*****	*****	*****	*****	*****
B.Non current Liabilities
Termloan	*****	*****	*****	*****	*****	*****
C.Current Liabilities
Working capital loan	*****	*****	*****	*****	*****	*****
Account payable		*****	*****	*****	*****	*****
Total Liability	*****	*****	*****	*****	*****	*****
Asset
A. Non current Assets
Fixed Assets	*****	*****	*****	*****	*****	*****
B. Current Assets
Inventory	*****	*****	*****	*****	*****	*****
Trade receivables	*****	*****	*****	*****	*****	*****
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	*****	*****	*****	*****	*****
b).Depreciation	*****	*****	*****	*****	0.30
c).Interest on termloan	*****	*****	*****	*****	*****
Total	*****	*****	*****	*****	*****
Repayments
a).Loan Principal	*****	*****	*****	*****	*****
b).Interest on termloan	*****	*****	*****	*****	*****
Total	*****	*****	*****	*****	*****
DSCR	*****	*****	*****	*****	*****

Depreciation

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

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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