PROJECT REPORT
Godaun
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
|
: |
[email protected]
|
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 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
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 |
15.93 |
***** |
***** |
***** |
***** |
***** |
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 |
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 |
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.