A Project Report on Finance of Stone Crusher

COMPANY PROFILE NAME

: Rajshree Stone Crusher

REGISTERED OFFICE NO.

: 213 L/6, xxxxxxxx xxxxxxxx

FACTORY ADDRESS

: Jamshedpur, Jharkhand, Ranchi- 825418

STATUS

: Private Company

PRODUCTS

: Crushed Stone (Segregated into Various Sizes Like 35mm, 20mm, 12mm, etc)

QUALIFICATION: BBA

1

ABOUT THE COMPANY & PRODUCTS Rajshree Stone Crusher with a desire and intention to manufacture/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 of raw Material and major commercial centre.  Crushed stone is segregated into various sizes like 35mm, 20mm, 12mm, etc for different uses.

2

 Crushed stone aggregates are used for 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.

 It is advantageous if the crushed stone unit is set up near the 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 of the 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.

3

PROCESS OF MANUFACTURING  The granite stones of various sizes are fed into the jaw crushers for size reduction.  Depending on the desired output size of the crushed stone, the raw materials are fed to one or two jaw crushers in a sequence.  Then these crushed stones re passed onto the rotary screen for size gradation.  Material is handled through a belt conveyor to the different Places of operation i.e. from jaw crusher to the rotary screen. The whole process of crushing stones or granite stones shall be automatic except the process of placing the stones into the jaw crusher for the size reduction. The sizes vary when the stones are crushed. The sizes of stones is segregated into various sizes like 35mm, 20mm, 12mm, etc. these sizes are used in different purposes. The installed machinery has the capacity to crush one truck daily of each various sizes i.e. 1 tucks daily of each sizes like 35mm, 20mm, 12mm etc except the wastage of stones in the form of sand. It reaches 1 truck in a month.

4

FACTORS OF PRODUCTION

Raw Material:The raw material required for crushed stones is stones from the

river and the small hills or mountains. The raw materials are transported from the river and other small hills or mountains to the installed plant & machinery. Labor:Labor is available at reasonable rates. On holiday labor are available on the basis of hour at the reasonable rates.

5

Marketing profile The unit is basically producing crushed stones for construction activities. Hence the demand for crushed stones would be always 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 he is 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.

6

Basic Assumptions  The property or land on which the crusher will be established its own property which is 2 acre.  The work shed will be constructed on 100 sq. meters while The office will be constructed on 5 sq. meters.  The working period will be 9 months in a year, which include 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 on holiday 4 hours per day.  It is considered that in 1 truck of boulders contains 4 ft. of boulders (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 in bank. 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.

7

A)

Assumptions In Preparation Of Projected Financial 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.

8

 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 on time 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. Manager’s 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 year this 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.

9

 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.

10

B)

Assumptions In Preparation Of Projected Balance 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.

11

Rajshree Stone Crusher Jamshedpur, Jharkhand Ranchi- 825418

COST OF PRJOECT AND SOURCES OF FINANCE A. Sources Of Finance S. 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. 2 3 4 5

Cost of license & registration charges Land Construction of work shed Construction of office Purchase of machinery & equipments

6 7 8 9

Furniture & office equipment Truck Electrical fittings Erection & commissioning

40000 900000 60000 100000

Working capital Total capital employed

137000 2500000

A-I (24)

43000 200000 120000 20000 880000

12

Rajshree Stone Crusher Jamshedpur, Jharkhand Ranchi- 825418

Projected profitability statement Particulars

20112012

20122013

2013-2014 2014-2015

4014000 ---------

4617800 -------

5307800 --------

5938200 ------

6654800 ------

4014000

4617800

5307800

5938200

6654800

A-III (24) 2856000 25000 A-IV (26) 325840 127500

3060000 26250 284140 133875

3264000 27562 312554 140568

3468000 28940.60 343809.40 147597

3672000 30387.70 378190.30 154977

3334340

3504265

3744684

3988347

4235555

-------386400

386400 828000

828000 1324800

1324800 1876800

1876800 2484000

Sub Total (B)

2947940

3062665

3247884

3436347

3628355

C. Gross Profit (A-B) D. Payment To Staff A-IV (27) E. Office & Administrative F. Selling & Distribution G.preliminaryexp.Writen off H. Bank Interest A-VI(31) I. Depreciation A-VII J. Net Profit Before Tax

1066060 63000 2500 32400 11000 172500 296000 488660

1555135 64500 2750 41640 11000 13800 214900 1206545

2059916 66000 3025 51800 11000 103500 187035 1637556

2501853 67500 3327 62880 11000 69000 162912 2125234

3026445 69000 3660 74880 11000 34500 219529 2811876

K. Income Tax (30%)

146598

361963

491266

637570

843562

342062

844582

1146290

1487664

1968314

649062

1070482

1344325

1661576

2198843

A: Income Sales Other income

B: Cost of sales Purchases Freight & Octroi Wages & labor charge Manufacturing overheads

Add : Opening Stock Less : Closing Stock

L. Profit after Tax Cash Profits

Ann(pg) 20102011 A-II (22)

A-V (28)

13

Rajshree Stone Crusher Jamshedpur, Jharkhand Ranchi- 825418 Projected Balance Sheet as at 31st March

Particulars

2011 2012 2013 2014

2015

Capital & Reserves

1342062 2186644 3332934 4820598

6788912

Secured loans Term Loan

1500000 1200000 900000

600000

300000

Unsecured Loans & Advances

----------

---------

---------

----------- -----------

Sundry Creditors For Goods Sundry Creditors For Expenses

234291 144291

249272 149273

263224 163225

257395 197395

LIABILITIES

Total

256817 226817

3220644 3785189 4659383 5875388

7572546

43000 1924000 221800 44000

47300 1709100 358700 33000

52030 1522065 410355 22000

62436 1359153 572100 11000

74923 150624 642422 00000

386400 644400 -42956 3220644

828000 1086400 -277311 3785189

1324800 1269600 -58533 4659383

1876800 1137600 856299 5875388

2484000 431500 3789077 7572546

ASSETS Goodwill Fixed Assets Sundry Debtors Preliminary Expenses Stock in Trade Raw materials Finished goods Cash & Bank Balances

Total

14

Rajshree Stone Crusher Jamshedpur, Jharkhand Ranchi- 825418

Statement showing working capital requirement Particulars

2011

2012

2013

2014

2015

386400 644400 221800 -42956

828000 1086400 358700 -277311

1324800 1269600 410355 -58533

1876800 1137600 572100 856299

2484000 431500 642422 3789077

CURRENT ASSETS I) Stock In Trade a) Raw materials b) Finished goods II) Sundry Debtors III) Cash & Bank Balances

SUB TOTAL (A) 1209644 1995789 2946222 4442799 7346999 CURRENT LIABILITIES 234291 Sundry Creditors For Goods 144291 Sundry Creditors For Expense SUB TOTAL (B) 378582 B.) Working capital gap (A-B)

249272 149273

263224 163225

257395 197395

256817 226817

398545

426449

454790

483634

831062

1597244 2519773 3988009 6863365

302411

498947

C.) Minimum stipulated

net working capital (25% of A)

736555

1110699 1836749

15

Rajshree Stone Crusher Jamshedpur, Jharkhand Ranchi- 825418 Projected Fund Flow Statement Particulars

2011

2012

2013

2014

2015

Net profit after tax Add: depreciation & preliminary expenses

342062

844582

1146290 1487664 1968314

307000

225900

198035

Cash profit

649062

1070482 1344325 1661576 2198843

Term loan

1500000 1200000 900000

Decrease in working capital

---------

Margin money

1213000 -252238 476448

Sources Of Funds

---------

173912

600000

---------- --------937433

230529

300000 ---------3940522

TOTAL 3362062 1897244 2819773 4288009 7528365 Application Of Funds Addition of fixed assets

2220000 0000000 0000000 0000000 365000

Increase in working capital

831062

1597244 2519773 3988009 6863365

Preliminary expenses incurred

11000

00000

Repayment of term loan

300000 300000 300000 300000 300000 3362062 1897244 2819773 4288009 7528365

TOTAL

00000

00000

00000

16

Rajshree Stone Crusher Jamshedpur, Jharkhand Ranchi- 825418

Capital & Reserve Particulars Add: Introduced

2010 1000000

2011 2012 2013 ---------- ----------- ----------

2014 -----------

Add : Net Profit

342062

844582

Less: Withdrawal Closing Balance

-----------1342062

---------- ----------- ----------- -----------2186644 3332934 4820598 6788912

1146290 1487664 1968314

Preliminary Expenses Particulars

20102011 ---------25000 30000 55000

20112012 44000 ----------------44000

20122013 33000 ----------------33000

20132014 22000 ---------------22000

20142015 11000 ----------------11000

Less : Written off

11000

11000

11000

11000

11000

Balance carried to balance sheet

44000

33000

22000

11000

00000

Opening balance Market survey exp Professional fees

17

Rajshree Stone Crusher Jamshedpur, Jharkhand Ranchi- 825418 Selling & Distribution Particulars

20102011

20112012

20122013

20132014

20142015

Commission Paid A: 35 mm Quantity (truck) Rate (truck)

207 50

225 60

243 70

261 80

279 90

B: 20 mm Quantity (truck) Rate (truck)

216 50

234 60

252 70

270 80

288 90

C: 12 mm Quantity (truck) Rate (truck) Total

225 50 32400

235 60 41640

245 70 51800

255 80 62880

265 90 74880

18

Rajshree Stone Crusher Jamshedpur, Jharkhand Ranchi- 825418 Calculation Of Consolidated Debt Service Coverage Ratio Particulars Profit Available For Debt Servicing Net profit after tax Interest on long term debts Total (A)

2011

2012

2013

342062 172500 514562

844582 1146290 1487664 1968314 138000 103500 69000 34500 982582 1249790 1556664 2002814

Total loan installments & Interest (B)

472500

438000 403500

369000

334500

Debt service coverage ratio (A/B) Average Debt Service Coverage Ratio

1.08

2.24

4.21

5.98

3.09

2014

2015

3.32

19

20

Rajshree Stone Crusher Jamshedpur, 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 6

Cyclonic Dust Collector With 12 HP Motor Spares, Jaws, Jigs, Fixtures & Tools

1 1 set

225000 50000

Total Cost Of Machine

880000

21

Rajshree Stone Crusher Jamshedpur, Jharkhand Ranchi- 825418

Annexure –II: Details of Sales Particulars

Years 2010-2011

2011-2012 2012-2013 2013-2014 2014-2015

A. 35 mm Quantity (truck) (ft.) Rate (truck) (ft.) TOTAL(A)

207 828 5200 1300 1076400

225 900 5400 1350 1215000

243 972 5800 1400 1409400

261 1044 5800 1450 1513800

279 1116 6000 1500 1674000

B: 20 mm Quantity (truck) (ft.) Rate (truck) (ft.) TOTAL(B)

216 864 6000 1500 1296000

234 936 6400 1600 1497600

252 1008 6800 1700 1713600

270 1080 7200 1800 1944000

288 1152 7600 1900 2188800

C: 12 mm Quantity (truck) (ft.) Rate (truck) (ft.) TOTAL(C)

225 900 7200 1800

235 940 8000 2000

245 980 8800 2200

255 1020 9600 2400

265 1060 10400 2600

1620000

1880000

2156000

2448000

2756000

22

D: sand Quantity (truck) (ft.) Rate (truck) (ft.)

9 36 2400 600

9 36 2800 700

9 36 3200 800

9 36 3600 900

9 36 4000 1000

21600

25200

28800

32400

36000

4014000

4617800

5307800

5938200

6654800

TOTAL (D) Total Sales (A+B+C+D)

23

Rajshree Stone Crusher Jamshedpur, 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.)

1020 4080

1020 4080

1020 4080

1020 4080

1020 4080

2800 700

3000 750

3200 800

3400 850

3600 900

2856000

3060000

3264000

3468000

3672000

Rate : (Truck) (ft.) Total Purchases

24

Rajshree Stone Crusher Jamshedpur, 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

25

Rajshree Stone Crusher Jamshedpur, Jharkhand Ranchi- 825418 Annexure – IV (a): Details Of Wages & Labor Charges Particulars Skilled Workers

Unskilled Workers Security

Labor (time basis). 4 hrs in a day.

Total

Qty 3

8

1

4

Salary 3000

2000

2000 Rs. 40/ hr

Years 2010-2011 2011-2012 2012-2013 2013-2014

2014-2015

9000*9= 81000

89100

98010

107811

118592.1

16000*9= 144000

158400

174240

191664

210830.4

2000*12= 24000

26400

29040

31944

35138.4

1280*8= 10240

10240

11264

12390.4

13629.44

325840

284140

312554

343809.4

378190.34

26

Rajshree Stone Crusher Jamshedpur, Jharkhand Ranchi- 825418

Annexure IV (b): Payment to Staff

Particulars 2010-2011

Years 2011-2012 2012-2013 2013-2014 2014-2015

Manager/E ntrepreneur

4000*9 = 36000

36000+1000 37000+1000 38000+1000 39000+1000 = 37000 = 38000 = 39000 = 40000

Accountant cum clerk

3000*9 = 27000

2700+500 = 27500

27500+500 = 28000

28000+500 = 28500

28500+500 = 29000

63000

64500

66000

67500

69000

Total

27

Rajshree Stone Crusher Jamshedpur, Jharkhand Ranchi- 825418

Annexure V: Details of Closing Stock of Raw Material

Particulars

Years 2010-2011

2011-2012

2012-2013

2013-2014 2014-2015

------------------------

138 552

276 1104

414 1656

552 2208

-------------------------

2800 700

3000 750

3200 800

3400 850

Sub Total (A)

xxxxxxxx

386400

828000

1324800

1876800

B:Add: purchases Quantity (truck) (ft.)

1020 4080

1020 4080

1020 4080

1020 4080

1020 4080

Rate

2800 700

3000 750

3200 800

3400 850

3600 900

Sub Total(B)

2856000

3060000

326400

3468000

3672000

C:Less : production Quantity (truck) (ft.)

882 3528

882 3528

882 3528

882 3528

882 3528

Stones (boulders) A:Opening stock Quantity (truck) (ft.) Rate

Rate

(truck) (ft.)

(truck) (ft.)

(truck) (ft.)

Sub Total(C)

28

Quantity (truck) (ft.)

138 552

276 1104

414 1656

552 2208

690 2760

Rate

2800 700

3000 750

3200 800

3400 850

3600 900

386400

828000

1324800

1876800

2484000

(truck) (ft.)

Closing Stock Total (A+B-C)

29

Rajshree Stone Crusher Jamshedpur, Jharkhand Ranchi- 825418

Annexure V: Details of Closing Stock of Finished Products

Particulars

Years 2010-2011

20112012

2012-2013 2013-2014 2014-2015

-------------------------

45 180 5200 1300 234000

72 288 5400 1350 388800

81 324 5600 1400 453600

72 288 5800 1450 417600

------------------------

36 144 6000 1500

54 216 6800 1700

------------

216000

54 216 6400 1600 345600

367200

36 144 7200 1800 259200

-----------------------

27 108 7200 1800

44 176 8000 2000

51 204 8800 2200

48 192 9600 2400

--------------

194400

352000

448800

460800

1086400

1269600

1137600

Opening stock A) 35mm Quantity Rate

(truck) (ft.) (truck) (ft.)

Sub Total (A)

-------------

B) 20 mm Quantity Rate

(truck) (ft.) (truck) (ft.)

Sub Total (B) C) 12 mm Quantity Rate

(truck) (ft.) (truck) (ft.)

Sub Total (C) Total (A+B+C)

-------------- 644400

30

Rajshree Stone Crusher Jamshedpur, Jharkhand Ranchi- 825418

Annexure VI

: Details of Bank Interest & Repayment Of Loan

Particulars Term Loan

2010-2011 2011-2012 2012-2013 2013-2014 2014-2015

Opening Balance Add : Additions

--------1500000 1500000

1200000 ----------1200000

900000 ---------900000

600000 ---------600000

300000 ---------300000

Less :Annual Repayments

300000

300000

300000

300000

300000

Closing Balance

1200000

900000

600000

300000

000000

172500

138000

103500

69000

34500

Interest @ 11.5% (A)

31

Annexure VII: Details of Assets & Depreciation Particulars Land Opening W.D.V Add : Additions Less : Deletions Less : Depreciation Closing W.D.V Work shed Opening W.D.V Add : Additions Less : Deletions Less: Depreciation (10%) Closing W.D.V Office Opening W.D.V Add : Additions Less : Deletions Less: Depreciation (10%) Closing W.D.V Machinery Opening W.D.V Add : Additions Less : Deletions Less: Depreciation (15%) Closing W.D.V Electrical fittings Opening W.D.V Add : Additions Less : Deletions Less : Depreciation (15%) Closing W.D.V Truck Opening W.D.V Add : Additions Less : Deletions Less : Depreciation (15%) Closing W.D.V

2011

2012

2013

2014

2015

--------200000

200000 ---------

200000 ---------

200000 000000

200000 000000

000000 200000

--------200000

--------200000

000000 200000

000000 200000

--------120000

108000 ----------

97200 --------

87480 00000

78732 80000

12000 108000

10800 97200

9720 87480

8748 78732

15873 142859

-------20000

18000 ---------

16200 --------

14580 00000

13122 10000

2000 18000

1800 16200

1620 14580

1458 13122

2312 20810

--------880000

748000 ---------

673200 000000

605880 000000

545292 225000

132000 748000

74800 673200

67320 605880

60588 545292

115543 654749

-------60000

51000 ---------

43350 00000

36847 000000

31320 40000

9000 51000

7650 43350

6502 36847

5527 31320

10698 60622

--------900000

765000 ---------

650250 ---------

552712 --------

469806 ---------

135000 765000

114750 650250

97537 552712

82906 469806

70471 399335

32

Annexure VII: Details of Assets & Depreciation Particulars 2011 Furniture & Office Equipment Opening W.D.V Add : Additions Less : Deletions Less : Depreciation (15%) Closing W.D.V

Total Assets Opening W.D.V Add : Additions Less : Deletions Less : Depreciation Closing W.D.V

2012

2013

2014

2015

--------40000

34000 --------

28900 000000

24565 ---------

20880 10000

6000 34000

5100 28900

4335 24565

3685 20880

4632 26248

---------2220000 ---------296000 1924000

1924000 ------------------214900 1709100

1709100 ------------------187035 1522065

1522065 -------------------162912 1359153

1359153 365000 ---------219529 1504624

33

GROSS BLOCK

2220000 2220000 2220000 2220000 2585000

TOTAL DEPRECIATION 296000 NET BLOCK

510900

697935

860847

1080376

1924000 1709100 1522065 1359153 1504624

34