a project report on finance of stone crusher

8/13/2019 A Project Report on Finance of Stone Crusher

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1

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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6

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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8

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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9

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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11

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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12

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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13


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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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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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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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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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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20


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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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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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23

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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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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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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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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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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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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29

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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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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32

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



Closing W.D.V

Machinery

Opening W.D.V



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


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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33

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


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a project report on finance of stone crusher

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