Description
Football is the most common sport in the world. It is known and in every part of the world. Even in India, it is hugely popular and is played by a huge number of people.
1
INTRODUCTION
2
Football is the most common sport in the world. It is known and in every part of
the world. Even in India, it is hugely popular and is played by a huge number of
people. But in recent times, due to urbanization, there are not many grounds or
parks left for the people to play, which is where the artificial grounds come in.
These type of grounds are already available in pune itself, but are less in number.
But the popularity of these grounds is high and the demand for it is as well.
They charge the people on per hour basis and usually charge Rs. 1000 – 2000 per
hour.
These grounds are smaller in size than actual football grounds and are
usually meant for playing with five or six players per team. The grass used in these
type of grounds is artificial which is made of polyethylene or polyester .
3
VISION
? To provide good quality turf for playing.
? To create a good environment for playing.
? To price reasonably
? To ensure high standards of service and hygiene at all times.
? To make it an enjoyable experience.
? To have tournaments to boost awareness about the business.
4
BUSINESS PROFILE
5
ABOUT THE BUSINESS
Pro football is a business which deals in renting grounds on per hour basis. Its aim
is to satisfy customers need and to provide service at affordable rates. It aims at
providing things with quality and hygiene.
ESTABLISHMENT YEAR
The business will be established in 2014 and start its operation by august 2014.
LOCATION
Pro football will be located in hadapsar, Pune
STAFF OF THE BUSINESS
CUSTOMERS OF THE BUSINESS
Customers or target population will be the youth and other common people.
POST NO. OF WORKER
Entrepreneur 1
Skilled labour 1
unskilled labour 2
6
SUPPLIERS FOR THE BUSINESS
GPgrass for synthetic grass
Wanze for HDPE nets (side netting)
The rest items can be bought from retailers locally.
7
RESEARCH METHODOLOGY
8
DATA COLLECTION
The term data means group of information that represent the qualitative or quantitative attributes
of a variable or set of variables.
Data collection is a term used to describe a process of preparing and collecting data, for example,
as part of process improvement or similar project. The purpose of data collection is to obtain
information to keep on record, to make decisions about important issues, to pass information to
others.
The information for this project has been collected mainly through secondary sources:-
PRIMARY DATA:
The information for this project has been collected through primary and secondary sources.
In primary data collection, the information and data has been collected through questions raised
to the other ground employees. The loan procedure has been collected by asking questions to the
bank.
SECONDARY DATA:
The secondary data were collected from the brochure of the bank, the boards with the
information displayed in the bank premises and, from the bank website. The ground’s
information has been collected from web sites (www.hotfut.in) for specifications and google for
data about equipments ie. price, requirements, etc.
9
LOAN PROPOSAL
Detailed report (based on the potential borrowers, loan application and credit worthiness),
presented usually by a banks officer (with his or her comments) to a senior loan officer or the
bank loan committee.
HOW TO MAKE A LOAN PROPOSAL
STEP-1
Submit a cover letter with your proposal. This should be a brief introduction of your business,
the size of the loan requested and the purpose of the loan.
STEP-2
Begin your proposal with general information, including the business’ name and address, names
and social security number of the principals, the purpose of the loan, the exact amount of money
needed and detailed plans for what will be done with money.
STEP-3
Describe your business in detail. Include information on prior and projected performance, unique
aspects of your business and the legal and ownership structures.
STEP-4
Provide complete market information. Identify your competition and explain how your business
stacks up. Submit details on your current customer base.
10
STEP-5
Prepare management profiles for all owners and key employees. Highlight their education, past
accomplishments and qualifications.
STEP-6
Submit complete information concerning your last 5years of operation. If you’re just starting out,
provide projected balance sheets and income statements. Also include personal financial
statements from all the owners and information on any collateral that will be placed as security
for the loan.
STEP-7
Proofread the document, double checking spelling, grammar and the facts contained in the
proposal.
STEP-8
Submit your proposal with each copy of the loan package your required to return. Remember to
keep a copy for yourself.
DOCUMENTS REQUIRED FOR BUSINESS PROPOSAL
? Submit shop act license.
? Submit 3 years estimated balance sheet.
? 3 years income tax challan.
? Submit KYC (Know your Customer) documents- ration card, election card, photo, PAN
card, light bill.
? Person must be a shareholder of any company.
Submit property guarantee (house valuation, tax receipt)
11
FINANCIAL STATEMENT ANALYSIS
12
COST OF INVESTMENT
Sr. No. Particulars amount amount
1 Equipment cost
Artificial grass
(2 x 502 sq.mts at 378 per sq.mt)
Side netting
(2 x 1672 sq.mts at 37.8 per sq.mt)
Halogen lights
(12 lights x at 1200 each)
Goal posts
(4 x 900 each)
Footballs
(10 x 500 each)
Concrete poles (for lights)
(12 x
379512
126403
14400
3600
5000
3 Registration charges 6000
4 Deposit 500000
Total cost of the project 911000
13
FINANCIAL DETAILS OF THE PROJECT
Sr. No. PARTICULAR AMOUNT
A BANK FINANCE (70%) 637000
B OWN CONTRIBUTION (30%) 274000
TOTAL COST OF THE PROJECT 911000
OWN CAPITAL
30%
BANK LOAN
70%
FINANCIAL DETAILS OF THE PROJECT
14
REVANUE FOR THE PROJECTED YEARS
PARTICULAR
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
a) Revenue
from
retail sales
720000 782712 869496 976176 1103940
b) Revenue
from
distribution
1800000 1963008 2185320 2465844 2804808
Total Revenue 2520000 2745720 3054816 3442020 3908748
Index:-
A= Revenue from counter sales
B= Revenue from distribution
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
year 1
year 2
year 3
year 4
year 5
720000
782712
869496
976176
1103940
1800000 1963008
2185320
2465844
2804808
A B
15
REVENUE SCHEDULE
Statement –A
Showing revenue from retail sales for one month
Particulars 1
st
Year
% Increase in
2
nd
Year
% Increase
in 3
rd
Year
% Increase in
4
th
Year
% Increase
in 5
th
Year
Birth day cakes 14400 9 12 13 14
Fresh cream cakes 16200 8 10 11 12
Plum cake 10500 10 13 14 15
Butter cake 6300 8 10 11 11
Fruit cake 5400 8 9.5 11 11
Pastries 7200 9 11 13 14
Total 60000 8.71 11.09 12.27 13.09
Statement –B
Showing revenue from distribution for one month
Particulars 1
st
Year
% Increase in
2
nd
Year
% Increase
in 3
rd
Year
% Increase in
4
th
Year
% Increase
in 5
th
Year
Birth day cakes 32400 10 13 14 15
Fresh cream cakes 25200 9 10 11 12
Plum cakes 36000 9 13 15 15
Butter cakes 23100 8 9 10.5 12
Fruit cakes 17100 8 9 10.5 12
Pastries 16200 10 12 14 15
Total
150000 9.05 11.33 12.84 13.5
Total Revenue for the Project= (Statement A + Statement B)*12
16
EXPENDITURE FOR ONE MONTH
Sr. no. Particular No. Rate Amount
1
Salaries
Entrepreneur
Skilled labour
Unskilled labour
Driver
1
1
2
1
25000
10000
5500
5500
25000
10000
11000
5500
2
Utilities
Electricity
Fuel
Water charges
1600
8400
1000
3
Raw material
80000
4
Distribution
3000
5
Packing charges
6000
6
Rent
15000
7
Telephone expenses
500
8
Repairs & maintenance
500
9
Insurance
500
10
Sundry expenses
500
11
Stationary expenses
500
12
Accountant fees
500
Total
169500
17
TOTAL AMOUNT OF EXPENDITURE FOR PROJECTED PERIOD
Particular 1
st
Year 2
nd
Year 3
rd
Year 4
th
Year 5
th
Year
Raw Material 960000 1056000 1161600 1300992 1431091
Electricity Expenses 19200 19968 20767 21805 22895
Fuel 100800 110880 121968 136604 150265
Water 12000 12360 12731 13240 13902
Wages & Salary 618000 618000 679800 679800 747780
Distribution 36000 39600 43560 48787 54642
Packaging
72000
79200 87120 97574 107331
Telephone Expenses
6000
6180 6365 6620 6884
Repairs & Maintenance
6000
6240 6490 6814 7155
Insurance
6000
6000 6000 6540 6540
Sundry Exp
6000
6240 6552 7011 7572
Stationary 6000 6600 7260 8131 8863
Auditors Fee 6000 6000 6000 6600 6600
Rent 180000 180000 180000 198000 198000
Total
2034000 2153268 2346213 2538518 2769520
18
0
500000
1000000
1500000
2000000
2500000
3000000
year 1 year 2 year 3 year 4 year 5
EXPENSES
expenses
19
PERCENTAGE INCREASE IN EXPENDITURE
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Raw Material Nil 10% 10% 12% 10%
Electricity
Expenses Nil 4% 4% 5% 5%
Fuel Nil 10% 10% 12% 10%
Water Nil 3% 3% 4% 5%
Wages and Salary Nil 0% 10% 0% 10%
Distribution
Expenses
Nil
10% 10% 12% 12%
Packaging
Expenses Nil
10% 10% 12% 10%
Telephone
Expenses Nil
3% 3% 4% 4%
Repairs and
Maintenance Nil
4% 4% 5% 5%
Insurance Nil
0%
0% 9% 0%
Sundry expenses Nil 4% 5% 7% 8%
Stationary Nil 10% 10% 12% 9%
Auditors fees Nil 0% 0% 10% 0%
Rent Nil 0% 0% 10% 0%
20
CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN
FOR 1
ST
YEAR
Month
Opening
balance
EMI Amount
Interest
Amount
Principal
Reduction
Balance Due
1. 637000 14822
7432 7390 629610
2.
629610
14822
7346 7476 622134
3.
622134
14822
7258 7564 614570
4.
614570
14822
7170 7652 606918
5.
606918
14822
7081 7741 599177
6.
599177
14822
6991 7831 591346
7.
591346
14822
6899 7923 583423
8.
583423
14822
6807 8015 575408
9.
575408
14822
6713 8109 567299
10.
567299
14822
6618 8204 559095
11.
559095
14822
6523 8299 550796
12.
550796
14822
6426 8396 542400
Total
83264 94600
21
CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN
2
ND
YEAR
Month
Opening
balance
EMI Amount
Interest
Amount
Principal
Reduction
Balance Due
1. 542400 14822
6328 8494 533906
2.
533906
14822
6229 8593 525313
3.
525313
14822
6129 8693 516620
4.
516620
14822
6027 8795 507825
5.
507825
14822
5925 8897 498928
6.
498928
14822
5821 9001 489927
7.
489927
14822
5716 9106 480821
8.
480821
14822
5610 9212 471609
9.
471609
14822
5502 9320 462289
10.
462289
14822
5393 9429 452860
11.
452860
14822
5283 9539 443321
12.
443321
14822
5172 9650 433671
Total
69135 108729
22
CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN
3
RD
YEAR
Month
Opening
balance
EMI Amount
Interest
Amount
Principal
Reduction
Balance Due
1.
433671
14822
5060 9762 423909
2.
423909
14822
4946 9876 414033
3.
414033
14822
4831 9991 404042
4.
404042
14822
4714 10108 393934
5.
393934
14822
4596 10226 383708
6.
383708
14822
4477 10345 373363
7.
373363
14822
4356 10466 362897
8.
362897
14822
4234 10588 352309
9.
352309
14822
4110 10712 341597
10.
341597
14822
3985 10837 330760
11.
330760
14822
3859 10963 319797
12.
319797
14822
3731 11091 308706
Total
52899 124965
23
CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN
4
TH
YEAR
Month
Opening
balance
EMI Amount
Interest
Amount
Principal
Reduction
Balance Due
1. 308706 14822
3602 11220 297486
2.
297486
14822
3471 11351 286135
3.
286135
14822
3338 11484 274651
4.
274651
14822
3204 11618 263033
5.
263033
14822
3069 11753 251280
6.
251280
14822
2932 11890 239390
7.
239390
14822
2793 12029 227361
8.
227361
14822
2653 12169 215192
9.
215192
14822
2511 12311 202881
10.
202881
14822
2367 12455 190426
11.
190426
14822
2222 12600 177826
12.
177826
14822
2075 12747 165079
Total
34237 143627
24
CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN
5
TH
YEAR
Month
Opening
balance
EMI Amount
Interest
Amount
Principal
Reduction
Balance Due
1. 165079 14822
1926 12896 152183
2.
152183
14822
1775 13047 139136
3.
139136
14822
1623 13199 125937
4.
125937
14822
1469 13353 112584
5.
112584
14822
1314 13508 99076
6.
99076
14822
1156 13666 85410
7.
85410
14822
997 13825 71585
8.
71585
14822
835 13987 57598
9.
57598
14822
672 14150 43448
10.
43448
14822
507 14315 29133
11.
29133
14822
340 14482 14651
12.
14651
14822
171 14651 0
Total
12785 165079
25
SCHEDULE FOR DEPRECIATION
1- Depreciation on Oven
Year Opening balance Depreciation amount @ 10% Closing balance
1 100000 10000 90000
2 90000 9000 81000
3 81000 8100 72900
4 72900 7290 65610
5 65610 6561 59049
2- Depreciation on Mixer
Year Opening balance Depreciation amount @ 10% Closing balance
1 50000 5000 45000
2 45000 4500 40500
3 40500 4050 36450
4 36450 3645 32805
5 32805 3280 29525
3- Depreciation on Refrigerator
Year Opening balance Depreciation amount @ 10% Closing balance
1 40000 4000 36000
2 36000 3600 32400
3 32400 3240 29160
4 29160 2916 26244
5 26244 2624 23620
4- Depreciation on Motor Vehicle
Year opening balance Depreciation amount @ 10% Closing balance
1 190000 19000 171000
2 171000 17100 153900
3 153900 15390 138510
4 138510 13851 124659
5 124659 12466 112193
26
5- Depreciation on Furniture
Year Opening balance Depreciation amount @ 10% Closing balance
1 100000 10000 90000
2 90000 9000 81000
3 81000 8100 72900
4 72900 7290 65610
5 65610 6561 59049
6- Depreciation on Weighing scale
Year Opening balance Depreciation amount @ 10% Closing balance
1 10000 1000 9000
2 9000 900 8100
3 8100 810 7290
4 7290 729 6561
5 6561 656 5905
7- Depreciation on Fire extinguisher
Year Opening balance Depreciation amount @ 10% Closing balance
1 1100 110 990
2 990 99 810
3 810 81 729
4 729 73 656
5 656 65 591
8- Depreciation on Inverter
Year Opening balance Depreciation amount @ 10% Closing balance
1 20000 2000 18000
2 18000 1800 16200
3 16200 1620 14580
4 14580 1458 13122
5 13122 1312 11810
27
9- Depreciation on trays
Year Opening balance Depreciation amount @ 10% Closing balance
1 60000 6000 54000
2 54000 5400 48600
3 48600 4860 43366
4 43366 4374 39366
5 39366 3936 35430
10- Depreciation on Electricity Fitting
Year Opening balance Depreciation amount @ 10% Closing balance
1 22000 2200 19800
2 19800 1980 17820
3 17820 1782 16038
4 16038 1604 14434
5 14434 1443 12991
11- Depreciation on Utensils
Year Opening balance Depreciation amount @ 10% Closing balance
1 40000 4000 36000
2 36000 3600 32400
3 32400 3240 29160
4 29160 2916 26244
5 26244 2624 23620
12- Other equipments
Year Opening balance Depreciation amount @ 10% Closing balance
1 2400 240 2160
2 2160 216 1944
3 1944 194 1750
4 1750 175 1575
5 1575 157 1418
28
0
100000
200000
300000
400000
500000
600000
700000
year 1 year 2 year 3 year 4 year 5
FIXED ASSETS AND DEPRECIATION
Fixed Assets
F.A.After depriciation
Total depriciation
29
INCOME STATEMENT
PARTICULAR
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
REVENUE FROM
PROJECT
2520000 2745720 3054816 3442020 3908748
LESS: EXPENCE OF
PROJECT
2034000 2153268 2346213 2538518 2769520
PROFIT BEFORE
INTREST
DEPRICIATION AND
TAX
2034000 2153268 2346213 2538518 2769520
LESS:INTREST
83264 69135 52899 34237 12785
LESS
EPRICIATION
63550 57195 51475 46328 41695
LESS: REGISTRATION 1200 1200 1200 1200 1200
PROFIT BEFORE TAX
337986 464922 603029 821737 1083548
LESS: TAX (30%)
101396 139477 180909 246521 325064
NET PROFIT
236590 325445 422120 575216 758484
30
NET PROFIT
net profit
0
100000
200000
300000
400000
500000
600000
700000
800000
year 1
year 2
year 3
year 4
year 5
net profit
31
CASH FLOW STATEMENT
PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
CASH INFLOW
OPENING BALANCE
NIL 376240 651351 1001181 1480298
REVENUE
2520000 2745720 3054816 3442020 3908748
OWN CAPITAL
274000
NIL NIL NIL NIL
BANK LOAN
637000
NIL NIL NIL NIL
TOTAL
3431000 3121960 3706167 4443201 5389046
CASH OUTFLOW
FIXED ASSETS 635500
----- ----- ----- -----
DEPOSIT 100000
----- ----- ----- -----
REG. CHARGES 6000
----- ----- ----- -----
WORKING CAPITAL
2034000 2153268 2346213 2538518 2769520
INSTALLMENT 177864 177864 177864 177864 177864
TAX PAID
101396 139477 180909 246521 325064
TOTAL
3054760 2470609 2704986 2962903 3272448
CLOSING
BALANCE
376240 651351 1001181 1480298 2116598
32
376240
651351
1001181
1480298
2116598
0
500000
1000000
1500000
2000000
2500000
year 1 year 2 year 3 year 4 year 5
CASH IN HAND
Cash in hand
33
TRADING ACCOUNT FOR THE 1
ST
YEAR
Particulars Amount Particulars Amount
To Raw material 960000 By sales 2520000
To Electricity 19200
To Fuel 100800
To Water charges 12000
To Gross profit c/d 1428000
Total 2520000 Total 2520000
PROFIT AND LOSS ACCOUNT FOR THE 1
ST
YEAR
Particulars Amount Particulars Amount
To Salary 618000 By gross profit b/d 1428000
To Distribution expenses 36000
To Packing expenses 72000
To Telephone expenses 6000
To Repairs & maintenance 6000
To Insurance 6000
To Sundry expenses 6000
To Stationary 6000
To Auditors 6000
To Rent 180000
To Depreciation 63550
To Reg. charges 1200
To Interest 83264
To Tax paid 101396
To Net profit 236590
Total
1428000
Total
1428000
34
TRADING ACCOUNT FOR THE 2
ND
YEAR
Particulars Amount Particulars Amount
To Raw material
1056000
By sales
2745720
To Electricity
19968
To Fuel
110880
To Water charges
12360
To Gross profit c/d
1546512
Total
2745720
Total
2745720
PROFIT AND LOSS ACCOUNT FOR THE 2
ND
YEAR
Particulars Amount particulars Amount
To Salary
618000
By Gross profit b/d
1546512
To Distribution expenses
39600
To Packing expenses
79200
To Telephone expenses
6180
To Repairs & maintenance
6240
To Insurance
6000
To Sundry expenses
6240
To Stationary
6600
To Auditors
6000
To Rent
180000
To Depreciation
57195
To Reg. charges
1200
To Interest
69135
To Tax paid
139477
To Net profit
325445
Total 1546512 Total 1546512
35
TRADING ACCOUNT FOR THE 3
RD
YEAR
Particulars Amount particulars Amount
To Raw material
1161600
By sales
3054816
To Electricity
20767
To Fuel
121968
To Water charges
12731
To Gross profit c/d
1737750
Total
3054816
Total
3054816
PROFIT AND LOSS ACCOUNT FOR THE 3
RD
YEAR
Particulars Amount particulars Amount
To Salary
679800
By Gross profit b/d
1737750
To Distribution expenses
43560
To Packing expenses
87120
To Telephone expenses
6365
To Repairs & maintenance
6490
To Insurance
6000
To Sundry expenses
6552
To Stationary
7260
To Auditors
6000
To Rent
180000
To Depreciation
51475
To Reg. charges
1200
To Interest
52899
To Tax paid
180909
To Net profit
422120
Total
1737750
Total
1737750
36
TRADING ACCOUNT FOR THE 4
TH
YEAR
Particulars Amount Particulars Amount
To Raw material
1300992
By sales
3442020
To Electricity
21805
To Fuel
136604
To Water charges
13240
To Gross profit c/d
1969379
Total
3442020
Total
3442020
PROFIT AND LOSS ACCOUNT FOR THE 4
TH
YEAR
Particulars Amount particulars Amount
To Salary
679800
By gross profit b/d 1969379
To Distribution expenses
48787
To Packing expenses
97574
To Telephone expenses
6620
To Repairs & maintenance
6814
To Insurance
6540
To Sundry expenses
7011
To Stationary
8131
To Auditors
6600
To Rent
198000
To Depreciation
46328
To Reg. charges
1200
To Interest
34237
To Tax paid
246521
To Net profit
575216
Total
1969379
Total 1969379
37
TRADING ACCOUNT FOR THE 5
TH
YEAR
Particulars Amount Particulars Amount
To Raw material
1431091
By sales
3908748
To Electricity
22895
To Fuel
150265
To Water charges
13902
To Gross profit c/d
2290595
Total
3908748
3908748
PROFIT AND LOSS ACCOUNT FOR THE 5
TH
YEAR
Particulars Amount particulars
Amount
To Salary
747780
By gross profit b/d 2290595
To Distribution expenses
54642
To Packing expenses
107331
To Telephone expenses
6884
To Repairs & maintenance
7155
To Insurance
6540
To Sundry expenses
7572
To Stationary
8863
To Auditors
6600
To Rent
198000
To Depreciation
41695
To Reg. charges
1200
To Interest
12785
To Tax paid
325064
To Net profit
758484
Total
2290595
Total 2290595
38
BALANCE SHEET FOR THE PROJECTED PERIOD
Year 1 Year 2 Year 3 Year 4 Year 5
LIABILITIES
Own capital
274000 274000 274000 274000 274000
Bank loan
542400 433671 308706 165079 0
Net profit
236590 562035 984155 1559371 2317855
Total
1052990 1269706 1566861 1998450 2591855
ASSETS
Fixed assets
571950 514755 463280 416952 375257
Current Assets
376240 651351 1001181 1480298 2116598
Preliminary
4800 3600 2400 1200 0
Deposit
100000 100000 100000 100000 100000
Total
1052990 1269706 1566861 1998450 2591855
39
NET PROFIT RATIO
PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
NET PROFIT
236590 325445 422120 575216 758484
SALE
2520000 2745720 3054816 3442020 3908748
NET PROFIT
RATIO
9.38 11.85 13.81 16.71 19.40
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000
Year 1 Year 2 Year 3 Year 4 Year 5
Sales
Net Profit
40
FIXED ASSETS TO CURRENT ASSETS RATIO
PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
FIXED
ASSETS
571950 514755 463280 416952 375257
CURRENT
ASSETS
376240 651351 1001181 1480298 2116598
RATIO
1.52 0.79 0.46 0.28 0.18
Fixed Assets
Current Assets
0
500000
1000000
1500000
2000000
2500000
Year 1
Year 2
Year 3
Year 4
Year 5
Fixed Assets
Current Assets
41
DEBT TO EQUITY RATIO
PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
DEBT
542400 433671 308706 165079 0
EQUITY 274000 274000 274000 274000 0
RATIO 1.97 1.58 1.12 0.60
0
100000
200000
300000
400000
500000
600000
Year 1 Year 2 Year 3 Year 4 Year 5
Debt
Equity
42
PROPRIOTORY RATIO
PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
TOTAL ASSETS 1052990 1269706 1566861 1998450 2591855
OWNER’S
FUND
274000 274000 274000 274000 274000
PROPRIOTORY
RATIO
3.84 4.63 5.71 7.29 9.46
Owners fund
Total assets
0
500000
1000000
1500000
2000000
2500000
3000000
Year 1
Year 2
Year 3
Year 4
Year 5
Owners fund
Total assets
43
RETURN ON TOTAL ASSETS
PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
NET PROFIT
236590 325445 422120 575216 758484
TOTAL ASSETS 1052990 1269706 1566861 1998450 2591855
RETURN ON
TOTAL ASSETS
RATIO
0.22 0.25 0.26 0.28 0.29
0
500000
1000000
1500000
2000000
2500000
3000000
Year 1 year 2 Year 3 Year 4 Year 5
Net Profit
Total Assets
44
FIXED ASSETS TURNOVER RATIO
PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
NET SALES 2520000 2745720 3054816 3442020 3908748
FIXED
ASSETS
571950 514755 463280 416952 375257
RATIO 4.40 5.33 6.59 8.25 10.41
Net Sales
Fixed Assets
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
Year 1
Year 2
Year 3
Year 4
Year 5
Net Sales
Fixed Assets
45
CURRENT ASSETS TURNOVER RATIO
PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
SALES 2520000 2745720 3054816 3442020 3908748
CURRENT
ASSETS
376240 651351 1001181 1480298 2116598
RATIO 6.69 4.21 3.05 2.32 1.85
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000
Year 1 Year 2 Year 3 Year 4 Year 5
Net Sales
Current Assets
46
TOTAL ASSETS TURNOVER RATIO
PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
SALES
2520000 2745720 3054816 3442020 3908748
TOTAL
ASSETS
1052990 1269706 1566861 1998450 2591855
RATIO
2.39 2.16 1.95 1.72 1.51
Net Sales
Total Assets
0
1000000
2000000
3000000
4000000
Year 1
Year 2
Year 3
Year 4
Year 5
Net Sales
Total Assets
47
DEBT SERVICE COVERAGE RATIO
Net profit after tax + depreciation + interest on loan/interest on loan +installment
1
st
year: 236590+63550+83264/83264+177864
=383404/261128 = 1.47
2
nd
year: 325445+57195+69135/69135+177864
=451775/946999 = 1.83
3
rd
year: 422120+51475+52899/52899+177864
=526494/230763 = 2.28
4
th
year: 575216+46328+34237/34237+177864
=655781/212101 = 3.09
5
th
year: 758484+41695+12785/12785+177864
=812964/190649 = 4.26
48
CHAPTER 5
CONCLUSION
49
CONCLUSION
After the study we can conclude that loan proposal requires too many legal formalities which
needs legal documentation work to be done. Since football industry is in profit making industry
so we can earn interest and also pay back the installment on time.
Our conclusion states that we should provide quality service to the customer and should maintain
good relation with them for smooth functioning of the firm which in future will help to grow our
business and will also help in increasing profit.
50
CHAPTER 6
BIBLIOGRAPHY
51
BIBLIOGRAPHY
REFERRED BOOKS:
? Financial management by Dr. Satish Inamdar
? Financial management by Dr. N.M. Vechlekar
REFERRED WEBSITES:
? www.google.com
? www.wikipedia.com
? www.justdial.com
doc_235876264.docx
Football is the most common sport in the world. It is known and in every part of the world. Even in India, it is hugely popular and is played by a huge number of people.
1
INTRODUCTION
2
Football is the most common sport in the world. It is known and in every part of
the world. Even in India, it is hugely popular and is played by a huge number of
people. But in recent times, due to urbanization, there are not many grounds or
parks left for the people to play, which is where the artificial grounds come in.
These type of grounds are already available in pune itself, but are less in number.
But the popularity of these grounds is high and the demand for it is as well.
They charge the people on per hour basis and usually charge Rs. 1000 – 2000 per
hour.
These grounds are smaller in size than actual football grounds and are
usually meant for playing with five or six players per team. The grass used in these
type of grounds is artificial which is made of polyethylene or polyester .
3
VISION
? To provide good quality turf for playing.
? To create a good environment for playing.
? To price reasonably
? To ensure high standards of service and hygiene at all times.
? To make it an enjoyable experience.
? To have tournaments to boost awareness about the business.
4
BUSINESS PROFILE
5
ABOUT THE BUSINESS
Pro football is a business which deals in renting grounds on per hour basis. Its aim
is to satisfy customers need and to provide service at affordable rates. It aims at
providing things with quality and hygiene.
ESTABLISHMENT YEAR
The business will be established in 2014 and start its operation by august 2014.
LOCATION
Pro football will be located in hadapsar, Pune
STAFF OF THE BUSINESS
CUSTOMERS OF THE BUSINESS
Customers or target population will be the youth and other common people.
POST NO. OF WORKER
Entrepreneur 1
Skilled labour 1
unskilled labour 2
6
SUPPLIERS FOR THE BUSINESS
GPgrass for synthetic grass
Wanze for HDPE nets (side netting)
The rest items can be bought from retailers locally.
7
RESEARCH METHODOLOGY
8
DATA COLLECTION
The term data means group of information that represent the qualitative or quantitative attributes
of a variable or set of variables.
Data collection is a term used to describe a process of preparing and collecting data, for example,
as part of process improvement or similar project. The purpose of data collection is to obtain
information to keep on record, to make decisions about important issues, to pass information to
others.
The information for this project has been collected mainly through secondary sources:-
PRIMARY DATA:
The information for this project has been collected through primary and secondary sources.
In primary data collection, the information and data has been collected through questions raised
to the other ground employees. The loan procedure has been collected by asking questions to the
bank.
SECONDARY DATA:
The secondary data were collected from the brochure of the bank, the boards with the
information displayed in the bank premises and, from the bank website. The ground’s
information has been collected from web sites (www.hotfut.in) for specifications and google for
data about equipments ie. price, requirements, etc.
9
LOAN PROPOSAL
Detailed report (based on the potential borrowers, loan application and credit worthiness),
presented usually by a banks officer (with his or her comments) to a senior loan officer or the
bank loan committee.
HOW TO MAKE A LOAN PROPOSAL
STEP-1
Submit a cover letter with your proposal. This should be a brief introduction of your business,
the size of the loan requested and the purpose of the loan.
STEP-2
Begin your proposal with general information, including the business’ name and address, names
and social security number of the principals, the purpose of the loan, the exact amount of money
needed and detailed plans for what will be done with money.
STEP-3
Describe your business in detail. Include information on prior and projected performance, unique
aspects of your business and the legal and ownership structures.
STEP-4
Provide complete market information. Identify your competition and explain how your business
stacks up. Submit details on your current customer base.
10
STEP-5
Prepare management profiles for all owners and key employees. Highlight their education, past
accomplishments and qualifications.
STEP-6
Submit complete information concerning your last 5years of operation. If you’re just starting out,
provide projected balance sheets and income statements. Also include personal financial
statements from all the owners and information on any collateral that will be placed as security
for the loan.
STEP-7
Proofread the document, double checking spelling, grammar and the facts contained in the
proposal.
STEP-8
Submit your proposal with each copy of the loan package your required to return. Remember to
keep a copy for yourself.
DOCUMENTS REQUIRED FOR BUSINESS PROPOSAL
? Submit shop act license.
? Submit 3 years estimated balance sheet.
? 3 years income tax challan.
? Submit KYC (Know your Customer) documents- ration card, election card, photo, PAN
card, light bill.
? Person must be a shareholder of any company.
Submit property guarantee (house valuation, tax receipt)
11
FINANCIAL STATEMENT ANALYSIS
12
COST OF INVESTMENT
Sr. No. Particulars amount amount
1 Equipment cost
Artificial grass
(2 x 502 sq.mts at 378 per sq.mt)
Side netting
(2 x 1672 sq.mts at 37.8 per sq.mt)
Halogen lights
(12 lights x at 1200 each)
Goal posts
(4 x 900 each)
Footballs
(10 x 500 each)
Concrete poles (for lights)
(12 x
379512
126403
14400
3600
5000
3 Registration charges 6000
4 Deposit 500000
Total cost of the project 911000
13
FINANCIAL DETAILS OF THE PROJECT
Sr. No. PARTICULAR AMOUNT
A BANK FINANCE (70%) 637000
B OWN CONTRIBUTION (30%) 274000
TOTAL COST OF THE PROJECT 911000
OWN CAPITAL
30%
BANK LOAN
70%
FINANCIAL DETAILS OF THE PROJECT
14
REVANUE FOR THE PROJECTED YEARS
PARTICULAR
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
a) Revenue
from
retail sales
720000 782712 869496 976176 1103940
b) Revenue
from
distribution
1800000 1963008 2185320 2465844 2804808
Total Revenue 2520000 2745720 3054816 3442020 3908748
Index:-
A= Revenue from counter sales
B= Revenue from distribution
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
year 1
year 2
year 3
year 4
year 5
720000
782712
869496
976176
1103940
1800000 1963008
2185320
2465844
2804808
A B
15
REVENUE SCHEDULE
Statement –A
Showing revenue from retail sales for one month
Particulars 1
st
Year
% Increase in
2
nd
Year
% Increase
in 3
rd
Year
% Increase in
4
th
Year
% Increase
in 5
th
Year
Birth day cakes 14400 9 12 13 14
Fresh cream cakes 16200 8 10 11 12
Plum cake 10500 10 13 14 15
Butter cake 6300 8 10 11 11
Fruit cake 5400 8 9.5 11 11
Pastries 7200 9 11 13 14
Total 60000 8.71 11.09 12.27 13.09
Statement –B
Showing revenue from distribution for one month
Particulars 1
st
Year
% Increase in
2
nd
Year
% Increase
in 3
rd
Year
% Increase in
4
th
Year
% Increase
in 5
th
Year
Birth day cakes 32400 10 13 14 15
Fresh cream cakes 25200 9 10 11 12
Plum cakes 36000 9 13 15 15
Butter cakes 23100 8 9 10.5 12
Fruit cakes 17100 8 9 10.5 12
Pastries 16200 10 12 14 15
Total
150000 9.05 11.33 12.84 13.5
Total Revenue for the Project= (Statement A + Statement B)*12
16
EXPENDITURE FOR ONE MONTH
Sr. no. Particular No. Rate Amount
1
Salaries
Entrepreneur
Skilled labour
Unskilled labour
Driver
1
1
2
1
25000
10000
5500
5500
25000
10000
11000
5500
2
Utilities
Electricity
Fuel
Water charges
1600
8400
1000
3
Raw material
80000
4
Distribution
3000
5
Packing charges
6000
6
Rent
15000
7
Telephone expenses
500
8
Repairs & maintenance
500
9
Insurance
500
10
Sundry expenses
500
11
Stationary expenses
500
12
Accountant fees
500
Total
169500
17
TOTAL AMOUNT OF EXPENDITURE FOR PROJECTED PERIOD
Particular 1
st
Year 2
nd
Year 3
rd
Year 4
th
Year 5
th
Year
Raw Material 960000 1056000 1161600 1300992 1431091
Electricity Expenses 19200 19968 20767 21805 22895
Fuel 100800 110880 121968 136604 150265
Water 12000 12360 12731 13240 13902
Wages & Salary 618000 618000 679800 679800 747780
Distribution 36000 39600 43560 48787 54642
Packaging
72000
79200 87120 97574 107331
Telephone Expenses
6000
6180 6365 6620 6884
Repairs & Maintenance
6000
6240 6490 6814 7155
Insurance
6000
6000 6000 6540 6540
Sundry Exp
6000
6240 6552 7011 7572
Stationary 6000 6600 7260 8131 8863
Auditors Fee 6000 6000 6000 6600 6600
Rent 180000 180000 180000 198000 198000
Total
2034000 2153268 2346213 2538518 2769520
18
0
500000
1000000
1500000
2000000
2500000
3000000
year 1 year 2 year 3 year 4 year 5
EXPENSES
expenses
19
PERCENTAGE INCREASE IN EXPENDITURE
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Raw Material Nil 10% 10% 12% 10%
Electricity
Expenses Nil 4% 4% 5% 5%
Fuel Nil 10% 10% 12% 10%
Water Nil 3% 3% 4% 5%
Wages and Salary Nil 0% 10% 0% 10%
Distribution
Expenses
Nil
10% 10% 12% 12%
Packaging
Expenses Nil
10% 10% 12% 10%
Telephone
Expenses Nil
3% 3% 4% 4%
Repairs and
Maintenance Nil
4% 4% 5% 5%
Insurance Nil
0%
0% 9% 0%
Sundry expenses Nil 4% 5% 7% 8%
Stationary Nil 10% 10% 12% 9%
Auditors fees Nil 0% 0% 10% 0%
Rent Nil 0% 0% 10% 0%
20
CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN
FOR 1
ST
YEAR
Month
Opening
balance
EMI Amount
Interest
Amount
Principal
Reduction
Balance Due
1. 637000 14822
7432 7390 629610
2.
629610
14822
7346 7476 622134
3.
622134
14822
7258 7564 614570
4.
614570
14822
7170 7652 606918
5.
606918
14822
7081 7741 599177
6.
599177
14822
6991 7831 591346
7.
591346
14822
6899 7923 583423
8.
583423
14822
6807 8015 575408
9.
575408
14822
6713 8109 567299
10.
567299
14822
6618 8204 559095
11.
559095
14822
6523 8299 550796
12.
550796
14822
6426 8396 542400
Total
83264 94600
21
CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN
2
ND
YEAR
Month
Opening
balance
EMI Amount
Interest
Amount
Principal
Reduction
Balance Due
1. 542400 14822
6328 8494 533906
2.
533906
14822
6229 8593 525313
3.
525313
14822
6129 8693 516620
4.
516620
14822
6027 8795 507825
5.
507825
14822
5925 8897 498928
6.
498928
14822
5821 9001 489927
7.
489927
14822
5716 9106 480821
8.
480821
14822
5610 9212 471609
9.
471609
14822
5502 9320 462289
10.
462289
14822
5393 9429 452860
11.
452860
14822
5283 9539 443321
12.
443321
14822
5172 9650 433671
Total
69135 108729
22
CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN
3
RD
YEAR
Month
Opening
balance
EMI Amount
Interest
Amount
Principal
Reduction
Balance Due
1.
433671
14822
5060 9762 423909
2.
423909
14822
4946 9876 414033
3.
414033
14822
4831 9991 404042
4.
404042
14822
4714 10108 393934
5.
393934
14822
4596 10226 383708
6.
383708
14822
4477 10345 373363
7.
373363
14822
4356 10466 362897
8.
362897
14822
4234 10588 352309
9.
352309
14822
4110 10712 341597
10.
341597
14822
3985 10837 330760
11.
330760
14822
3859 10963 319797
12.
319797
14822
3731 11091 308706
Total
52899 124965
23
CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN
4
TH
YEAR
Month
Opening
balance
EMI Amount
Interest
Amount
Principal
Reduction
Balance Due
1. 308706 14822
3602 11220 297486
2.
297486
14822
3471 11351 286135
3.
286135
14822
3338 11484 274651
4.
274651
14822
3204 11618 263033
5.
263033
14822
3069 11753 251280
6.
251280
14822
2932 11890 239390
7.
239390
14822
2793 12029 227361
8.
227361
14822
2653 12169 215192
9.
215192
14822
2511 12311 202881
10.
202881
14822
2367 12455 190426
11.
190426
14822
2222 12600 177826
12.
177826
14822
2075 12747 165079
Total
34237 143627
24
CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN
5
TH
YEAR
Month
Opening
balance
EMI Amount
Interest
Amount
Principal
Reduction
Balance Due
1. 165079 14822
1926 12896 152183
2.
152183
14822
1775 13047 139136
3.
139136
14822
1623 13199 125937
4.
125937
14822
1469 13353 112584
5.
112584
14822
1314 13508 99076
6.
99076
14822
1156 13666 85410
7.
85410
14822
997 13825 71585
8.
71585
14822
835 13987 57598
9.
57598
14822
672 14150 43448
10.
43448
14822
507 14315 29133
11.
29133
14822
340 14482 14651
12.
14651
14822
171 14651 0
Total
12785 165079
25
SCHEDULE FOR DEPRECIATION
1- Depreciation on Oven
Year Opening balance Depreciation amount @ 10% Closing balance
1 100000 10000 90000
2 90000 9000 81000
3 81000 8100 72900
4 72900 7290 65610
5 65610 6561 59049
2- Depreciation on Mixer
Year Opening balance Depreciation amount @ 10% Closing balance
1 50000 5000 45000
2 45000 4500 40500
3 40500 4050 36450
4 36450 3645 32805
5 32805 3280 29525
3- Depreciation on Refrigerator
Year Opening balance Depreciation amount @ 10% Closing balance
1 40000 4000 36000
2 36000 3600 32400
3 32400 3240 29160
4 29160 2916 26244
5 26244 2624 23620
4- Depreciation on Motor Vehicle
Year opening balance Depreciation amount @ 10% Closing balance
1 190000 19000 171000
2 171000 17100 153900
3 153900 15390 138510
4 138510 13851 124659
5 124659 12466 112193
26
5- Depreciation on Furniture
Year Opening balance Depreciation amount @ 10% Closing balance
1 100000 10000 90000
2 90000 9000 81000
3 81000 8100 72900
4 72900 7290 65610
5 65610 6561 59049
6- Depreciation on Weighing scale
Year Opening balance Depreciation amount @ 10% Closing balance
1 10000 1000 9000
2 9000 900 8100
3 8100 810 7290
4 7290 729 6561
5 6561 656 5905
7- Depreciation on Fire extinguisher
Year Opening balance Depreciation amount @ 10% Closing balance
1 1100 110 990
2 990 99 810
3 810 81 729
4 729 73 656
5 656 65 591
8- Depreciation on Inverter
Year Opening balance Depreciation amount @ 10% Closing balance
1 20000 2000 18000
2 18000 1800 16200
3 16200 1620 14580
4 14580 1458 13122
5 13122 1312 11810
27
9- Depreciation on trays
Year Opening balance Depreciation amount @ 10% Closing balance
1 60000 6000 54000
2 54000 5400 48600
3 48600 4860 43366
4 43366 4374 39366
5 39366 3936 35430
10- Depreciation on Electricity Fitting
Year Opening balance Depreciation amount @ 10% Closing balance
1 22000 2200 19800
2 19800 1980 17820
3 17820 1782 16038
4 16038 1604 14434
5 14434 1443 12991
11- Depreciation on Utensils
Year Opening balance Depreciation amount @ 10% Closing balance
1 40000 4000 36000
2 36000 3600 32400
3 32400 3240 29160
4 29160 2916 26244
5 26244 2624 23620
12- Other equipments
Year Opening balance Depreciation amount @ 10% Closing balance
1 2400 240 2160
2 2160 216 1944
3 1944 194 1750
4 1750 175 1575
5 1575 157 1418
28
0
100000
200000
300000
400000
500000
600000
700000
year 1 year 2 year 3 year 4 year 5
FIXED ASSETS AND DEPRECIATION
Fixed Assets
F.A.After depriciation
Total depriciation
29
INCOME STATEMENT
PARTICULAR
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
REVENUE FROM
PROJECT
2520000 2745720 3054816 3442020 3908748
LESS: EXPENCE OF
PROJECT
2034000 2153268 2346213 2538518 2769520
PROFIT BEFORE
INTREST
DEPRICIATION AND
TAX
2034000 2153268 2346213 2538518 2769520
LESS:INTREST
83264 69135 52899 34237 12785
LESS
EPRICIATION63550 57195 51475 46328 41695
LESS: REGISTRATION 1200 1200 1200 1200 1200
PROFIT BEFORE TAX
337986 464922 603029 821737 1083548
LESS: TAX (30%)
101396 139477 180909 246521 325064
NET PROFIT
236590 325445 422120 575216 758484
30
NET PROFIT
net profit
0
100000
200000
300000
400000
500000
600000
700000
800000
year 1
year 2
year 3
year 4
year 5
net profit
31
CASH FLOW STATEMENT
PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
CASH INFLOW
OPENING BALANCE
NIL 376240 651351 1001181 1480298
REVENUE
2520000 2745720 3054816 3442020 3908748
OWN CAPITAL
274000
NIL NIL NIL NIL
BANK LOAN
637000
NIL NIL NIL NIL
TOTAL
3431000 3121960 3706167 4443201 5389046
CASH OUTFLOW
FIXED ASSETS 635500
----- ----- ----- -----
DEPOSIT 100000
----- ----- ----- -----
REG. CHARGES 6000
----- ----- ----- -----
WORKING CAPITAL
2034000 2153268 2346213 2538518 2769520
INSTALLMENT 177864 177864 177864 177864 177864
TAX PAID
101396 139477 180909 246521 325064
TOTAL
3054760 2470609 2704986 2962903 3272448
CLOSING
BALANCE
376240 651351 1001181 1480298 2116598
32
376240
651351
1001181
1480298
2116598
0
500000
1000000
1500000
2000000
2500000
year 1 year 2 year 3 year 4 year 5
CASH IN HAND
Cash in hand
33
TRADING ACCOUNT FOR THE 1
ST
YEAR
Particulars Amount Particulars Amount
To Raw material 960000 By sales 2520000
To Electricity 19200
To Fuel 100800
To Water charges 12000
To Gross profit c/d 1428000
Total 2520000 Total 2520000
PROFIT AND LOSS ACCOUNT FOR THE 1
ST
YEAR
Particulars Amount Particulars Amount
To Salary 618000 By gross profit b/d 1428000
To Distribution expenses 36000
To Packing expenses 72000
To Telephone expenses 6000
To Repairs & maintenance 6000
To Insurance 6000
To Sundry expenses 6000
To Stationary 6000
To Auditors 6000
To Rent 180000
To Depreciation 63550
To Reg. charges 1200
To Interest 83264
To Tax paid 101396
To Net profit 236590
Total
1428000
Total
1428000
34
TRADING ACCOUNT FOR THE 2
ND
YEAR
Particulars Amount Particulars Amount
To Raw material
1056000
By sales
2745720
To Electricity
19968
To Fuel
110880
To Water charges
12360
To Gross profit c/d
1546512
Total
2745720
Total
2745720
PROFIT AND LOSS ACCOUNT FOR THE 2
ND
YEAR
Particulars Amount particulars Amount
To Salary
618000
By Gross profit b/d
1546512
To Distribution expenses
39600
To Packing expenses
79200
To Telephone expenses
6180
To Repairs & maintenance
6240
To Insurance
6000
To Sundry expenses
6240
To Stationary
6600
To Auditors
6000
To Rent
180000
To Depreciation
57195
To Reg. charges
1200
To Interest
69135
To Tax paid
139477
To Net profit
325445
Total 1546512 Total 1546512
35
TRADING ACCOUNT FOR THE 3
RD
YEAR
Particulars Amount particulars Amount
To Raw material
1161600
By sales
3054816
To Electricity
20767
To Fuel
121968
To Water charges
12731
To Gross profit c/d
1737750
Total
3054816
Total
3054816
PROFIT AND LOSS ACCOUNT FOR THE 3
RD
YEAR
Particulars Amount particulars Amount
To Salary
679800
By Gross profit b/d
1737750
To Distribution expenses
43560
To Packing expenses
87120
To Telephone expenses
6365
To Repairs & maintenance
6490
To Insurance
6000
To Sundry expenses
6552
To Stationary
7260
To Auditors
6000
To Rent
180000
To Depreciation
51475
To Reg. charges
1200
To Interest
52899
To Tax paid
180909
To Net profit
422120
Total
1737750
Total
1737750
36
TRADING ACCOUNT FOR THE 4
TH
YEAR
Particulars Amount Particulars Amount
To Raw material
1300992
By sales
3442020
To Electricity
21805
To Fuel
136604
To Water charges
13240
To Gross profit c/d
1969379
Total
3442020
Total
3442020
PROFIT AND LOSS ACCOUNT FOR THE 4
TH
YEAR
Particulars Amount particulars Amount
To Salary
679800
By gross profit b/d 1969379
To Distribution expenses
48787
To Packing expenses
97574
To Telephone expenses
6620
To Repairs & maintenance
6814
To Insurance
6540
To Sundry expenses
7011
To Stationary
8131
To Auditors
6600
To Rent
198000
To Depreciation
46328
To Reg. charges
1200
To Interest
34237
To Tax paid
246521
To Net profit
575216
Total
1969379
Total 1969379
37
TRADING ACCOUNT FOR THE 5
TH
YEAR
Particulars Amount Particulars Amount
To Raw material
1431091
By sales
3908748
To Electricity
22895
To Fuel
150265
To Water charges
13902
To Gross profit c/d
2290595
Total
3908748
3908748
PROFIT AND LOSS ACCOUNT FOR THE 5
TH
YEAR
Particulars Amount particulars
Amount
To Salary
747780
By gross profit b/d 2290595
To Distribution expenses
54642
To Packing expenses
107331
To Telephone expenses
6884
To Repairs & maintenance
7155
To Insurance
6540
To Sundry expenses
7572
To Stationary
8863
To Auditors
6600
To Rent
198000
To Depreciation
41695
To Reg. charges
1200
To Interest
12785
To Tax paid
325064
To Net profit
758484
Total
2290595
Total 2290595
38
BALANCE SHEET FOR THE PROJECTED PERIOD
Year 1 Year 2 Year 3 Year 4 Year 5
LIABILITIES
Own capital
274000 274000 274000 274000 274000
Bank loan
542400 433671 308706 165079 0
Net profit
236590 562035 984155 1559371 2317855
Total
1052990 1269706 1566861 1998450 2591855
ASSETS
Fixed assets
571950 514755 463280 416952 375257
Current Assets
376240 651351 1001181 1480298 2116598
Preliminary
4800 3600 2400 1200 0
Deposit
100000 100000 100000 100000 100000
Total
1052990 1269706 1566861 1998450 2591855
39
NET PROFIT RATIO
PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
NET PROFIT
236590 325445 422120 575216 758484
SALE
2520000 2745720 3054816 3442020 3908748
NET PROFIT
RATIO
9.38 11.85 13.81 16.71 19.40
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000
Year 1 Year 2 Year 3 Year 4 Year 5
Sales
Net Profit
40
FIXED ASSETS TO CURRENT ASSETS RATIO
PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
FIXED
ASSETS
571950 514755 463280 416952 375257
CURRENT
ASSETS
376240 651351 1001181 1480298 2116598
RATIO
1.52 0.79 0.46 0.28 0.18
Fixed Assets
Current Assets
0
500000
1000000
1500000
2000000
2500000
Year 1
Year 2
Year 3
Year 4
Year 5
Fixed Assets
Current Assets
41
DEBT TO EQUITY RATIO
PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
DEBT
542400 433671 308706 165079 0
EQUITY 274000 274000 274000 274000 0
RATIO 1.97 1.58 1.12 0.60
0
100000
200000
300000
400000
500000
600000
Year 1 Year 2 Year 3 Year 4 Year 5
Debt
Equity
42
PROPRIOTORY RATIO
PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
TOTAL ASSETS 1052990 1269706 1566861 1998450 2591855
OWNER’S
FUND
274000 274000 274000 274000 274000
PROPRIOTORY
RATIO
3.84 4.63 5.71 7.29 9.46
Owners fund
Total assets
0
500000
1000000
1500000
2000000
2500000
3000000
Year 1
Year 2
Year 3
Year 4
Year 5
Owners fund
Total assets
43
RETURN ON TOTAL ASSETS
PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
NET PROFIT
236590 325445 422120 575216 758484
TOTAL ASSETS 1052990 1269706 1566861 1998450 2591855
RETURN ON
TOTAL ASSETS
RATIO
0.22 0.25 0.26 0.28 0.29
0
500000
1000000
1500000
2000000
2500000
3000000
Year 1 year 2 Year 3 Year 4 Year 5
Net Profit
Total Assets
44
FIXED ASSETS TURNOVER RATIO
PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
NET SALES 2520000 2745720 3054816 3442020 3908748
FIXED
ASSETS
571950 514755 463280 416952 375257
RATIO 4.40 5.33 6.59 8.25 10.41
Net Sales
Fixed Assets
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
Year 1
Year 2
Year 3
Year 4
Year 5
Net Sales
Fixed Assets
45
CURRENT ASSETS TURNOVER RATIO
PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
SALES 2520000 2745720 3054816 3442020 3908748
CURRENT
ASSETS
376240 651351 1001181 1480298 2116598
RATIO 6.69 4.21 3.05 2.32 1.85
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000
Year 1 Year 2 Year 3 Year 4 Year 5
Net Sales
Current Assets
46
TOTAL ASSETS TURNOVER RATIO
PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
SALES
2520000 2745720 3054816 3442020 3908748
TOTAL
ASSETS
1052990 1269706 1566861 1998450 2591855
RATIO
2.39 2.16 1.95 1.72 1.51
Net Sales
Total Assets
0
1000000
2000000
3000000
4000000
Year 1
Year 2
Year 3
Year 4
Year 5
Net Sales
Total Assets
47
DEBT SERVICE COVERAGE RATIO
Net profit after tax + depreciation + interest on loan/interest on loan +installment
1
st
year: 236590+63550+83264/83264+177864
=383404/261128 = 1.47
2
nd
year: 325445+57195+69135/69135+177864
=451775/946999 = 1.83
3
rd
year: 422120+51475+52899/52899+177864
=526494/230763 = 2.28
4
th
year: 575216+46328+34237/34237+177864
=655781/212101 = 3.09
5
th
year: 758484+41695+12785/12785+177864
=812964/190649 = 4.26
48
CHAPTER 5
CONCLUSION
49
CONCLUSION
After the study we can conclude that loan proposal requires too many legal formalities which
needs legal documentation work to be done. Since football industry is in profit making industry
so we can earn interest and also pay back the installment on time.
Our conclusion states that we should provide quality service to the customer and should maintain
good relation with them for smooth functioning of the firm which in future will help to grow our
business and will also help in increasing profit.
50
CHAPTER 6
BIBLIOGRAPHY
51
BIBLIOGRAPHY
REFERRED BOOKS:
? Financial management by Dr. Satish Inamdar
? Financial management by Dr. N.M. Vechlekar
REFERRED WEBSITES:
? www.google.com
? www.wikipedia.com
? www.justdial.com
doc_235876264.docx