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this is a project on loan proposal
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INTRODUCTION
1
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 .
2
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.
3
BUSINESS PROFILE
4
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.
5
POST NO. OF WORKER
Entrepreneur 1
Skilled labour 1
unskilled labour 2
SUPPLIERS FOR THE BUSINESS
GPgrass for synthetic grass
Wanze for HDPE nets (side netting)
The rest items can be bought from retailers locally.
6
RESEARCH METHODOLOGY
7
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.
8
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.
9
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)
10
FINANCIAL STATEMENT ANALYSIS
11
COST OF INVESTMENT
Sr. No. Particulars amount amount
1 Equipment costArtificial 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
12
FINANCIAL DETAILS OF THE PROJECT
Sr. No. PARTICULAR AMOUNTA BANK FINANCE (70%) 637000B OWN CONTRIBUTION (30%) 274000
TOTAL COST OF THE PROJECT 911000
OWN CAPITAL30%
BANK LOAN70%
FINANCIAL DETAILS OF THE PROJECT
13
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
year 1year 2
year 3year 4
year 5
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
720000 782712 869496 976176 1103940
1800000 1963008 2185320 2465844 2804808
A B
Index:-
A= Revenue from counter sales
B= Revenue from distribution
14
REVENUE SCHEDULE
Statement –A
Showing revenue from retail sales for one month
Particulars 1st Year % Increase in 2nd Year
% Increase in 3rd Year
% Increase in 4th Year
% Increase in 5th 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 1st Year% Increase in
2nd Year% Increase in 3rd Year
% Increase in 4th Year
% Increase in 5th 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 15Total 150000 9.05 11.33 12.84 13.5
Total Revenue for the Project= (Statement A + Statement B)*12
EXPENDITURE FOR ONE MONTH
15
Sr. no. Particular No. Rate Amount
1
SalariesEntrepreneur Skilled labour Unskilled labourDriver
1121
250001000055005500
2500010000110005500
2
Utilities ElectricityFuel Water charges
160084001000
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
16
TOTAL AMOUNT OF EXPENDITURE FOR PROJECTED PERIOD
Particular 1st Year 2nd Year 3rd Year 4th Year 5th 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
Packaging72000
79200 87120 97574 107331
Telephone Expenses6000
6180 6365 6620 6884
Repairs & Maintenance6000
6240 6490 6814 7155
Insurance6000
6000 6000 6540 6540
Sundry Exp6000
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
17
year 1 year 2 year 3 year 4 year 50
500000
1000000
1500000
2000000
2500000
3000000
EXPENSES
expenses
18
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%
19
CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN
FOR 1 ST YEAR
Month Opening balance
EMI AmountInterest 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
CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN
20
2 ND YEAR
Month Opening balance
EMI AmountInterest 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
CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN
3 RD YEAR
21
Month Opening balance
EMI AmountInterest 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
CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN
4 TH YEAR
Month Opening EMI Amount Interest Principal Balance Due
22
balance Amount Reduction
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
CALCULATION OF INTEREST AND INSTALLMENT OF BANK LOAN
5 TH YEAR
Month Opening EMI Amount Interest Principal Balance Due
23
balance Amount Reduction
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
SCHEDULE FOR DEPRECIATION
1- Depreciation on Oven
Year Opening balance Depreciation amount @ 10% Closing balance1 100000 10000 90000
24
2 90000 9000 810003 81000 8100 729004 72900 7290 656105 65610 6561 59049
2- Depreciation on Mixer
Year Opening balance Depreciation amount @ 10% Closing balance1 50000 5000 450002 45000 4500 405003 40500 4050 364504 36450 3645 328055 32805 3280 29525
3- Depreciation on Refrigerator
Year Opening balance Depreciation amount @ 10% Closing balance1 40000 4000 360002 36000 3600 324003 32400 3240 291604 29160 2916 262445 26244 2624 23620
4- Depreciation on Motor Vehicle
Year opening balance Depreciation amount @ 10% Closing balance1 190000 19000 1710002 171000 17100 1539003 153900 15390 1385104 138510 13851 1246595 124659 12466 112193
5- Depreciation on Furniture
Year Opening balance Depreciation amount @ 10% Closing balance1 100000 10000 900002 90000 9000 81000
25
3 81000 8100 729004 72900 7290 656105 65610 6561 59049
6- Depreciation on Weighing scale
Year Opening balance Depreciation amount @ 10% Closing balance1 10000 1000 90002 9000 900 81003 8100 810 72904 7290 729 65615 6561 656 5905
7- Depreciation on Fire extinguisher
Year Opening balance Depreciation amount @ 10% Closing balance1 1100 110 9902 990 99 8103 810 81 7294 729 73 6565 656 65 591
8- Depreciation on Inverter
Year Opening balance Depreciation amount @ 10% Closing balance1 20000 2000 180002 18000 1800 162003 16200 1620 145804 14580 1458 131225 13122 1312 11810
9- Depreciation on trays
Year Opening balance Depreciation amount @ 10% Closing balance1 60000 6000 540002 54000 5400 48600
26
3 48600 4860 433664 43366 4374 393665 39366 3936 35430
10- Depreciation on Electricity Fitting
Year Opening balance Depreciation amount @ 10% Closing balance1 22000 2200 198002 19800 1980 178203 17820 1782 160384 16038 1604 144345 14434 1443 12991
11- Depreciation on Utensils
Year Opening balance Depreciation amount @ 10% Closing balance1 40000 4000 360002 36000 3600 324003 32400 3240 291604 29160 2916 262445 26244 2624 23620
12- Other equipments
Year Opening balance Depreciation amount @ 10% Closing balance1 2400 240 21602 2160 216 19443 1944 194 17504 1750 175 15755 1575 157 1418
27
year 1 year 2 year 3 year 4 year 50
100000
200000
300000
400000
500000
600000
700000
FIXED ASSETS AND DEPRECIATION
Fixed AssetsF.A.After depriciationTotal depriciation
28
INCOME STATEMENT
PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
REVENUE FROM PROJECT 2520000 2745720 3054816 3442020 3908748LESS: EXPENCE OF PROJECT 2034000 2153268 2346213 2538518 2769520PROFIT BEFORE INTREST DEPRICIATION AND TAX 2034000 2153268 2346213 2538518 2769520
LESS:INTREST 83264 69135 52899 34237 12785
LESS:DEPRICIATION 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
29
NET PROFIT
year 1year 2
year 3year 4
year 5
0
100000
200000
300000
400000
500000
600000
700000
800000
net profit
30
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 3272448CLOSING BALANCE 376240 651351 1001181 1480298 2116598
31
32
year 1 year 2 year 3 year 4 year 50
500000
1000000
1500000
2000000
2500000
376240
651351
1001181
1480298
2116598
CASH IN HANDCash in hand
TRADING ACCOUNT FOR THE 1ST 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 1ST 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 236590Total 1428000 Total 1428000
TRADING ACCOUNT FOR THE 2ND YEAR
33
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 2ND 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
TRADING ACCOUNT FOR THE 3RD YEAR
34
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 3RD 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
TRADING ACCOUNT FOR THE 4TH YEAR
35
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 4TH 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
TRADING ACCOUNT FOR THE 5TH YEAR
Particulars Amount Particulars Amount
36
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 5TH 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
BALANCE SHEET FOR THE PROJECTED PERIOD
Year 1 Year 2 Year 3 Year 4 Year 5
37
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
38
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
Year 1 Year 2 Year 3 Year 4 Year 50
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000
SalesNet Profit
39
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
Year 1 Year 2 Year 3 Year 4 Year 5
0
500000
1000000
1500000
2000000
2500000
Fixed AssetsCurrent Assets
Fixed AssetsCurrent Assets
40
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
41
Year 1 Year 2 Year 3 Year 4 Year 50
100000
200000
300000
400000
500000
600000
DebtEquity
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
42
Year 1 Year 2 Year 3 Year 4 Year 5
0
500000
1000000
1500000
2000000
2500000
3000000
Owners fund
Total assets
Owners fundTotal assets
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 2591855RETURN ON TOTAL ASSETS RATIO
0.22 0.25 0.26 0.28 0.29
Year 1 year 2 Year 3 Year 4 Year 50
500000
1000000
1500000
2000000
2500000
3000000
Net ProfitTotal Assets
FIXED ASSETS TURNOVER RATIO
43
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
Year 1 Year 2 Year 3 Year 4 Year 5
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
Net Sales
Fixed Assets
Net SalesFixed Assets
44
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
Year 1 Year 2 Year 3 Year 4 Year 50
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000
Net SalesCurrent Assets
45
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
Year 1 Year 2 Year 3 Year 4 Year 5
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
Net Sales
Total Assets
Net SalesTotal Assets
46
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
47
CHAPTER 5
CONCLUSION
48
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.
49
CHAPTER 6
BIBLIOGRAPHY
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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
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