1

Project Report
ON

RO WATER PLANT
Small and Medium Industries
TAKEN UP BY

M/S PASHUPATI INDUSTRIES

AT:- Akabarpur, P.O.:- Mathurapur, Warisnagar,

District- Samastipur, Pin-848101 (Bihar)

Prepared by:

M. BHARATI & CO.

(Chartered Accountant)
AT - WARD NO. 15, ROSERA,
DIST-SAMASTIPUR
PIN-848210
(BIHAR)
CONTRACT NO.-9199405560

DISCLAIMER
The purpose and scope of this information memorandum is to
introduce the subject matter and provide a general idea and information
on the said area. All the material included in this document is based on
data/information gathered from various sources and is based on certain
assumptions. Although, due care and diligence has been taken to compile
in this document, the contained information may vary due to any change
in any of the concerned factors, and the actual results may differ
substantially from the presented information. M/S PASHUPATI INDUSTRIES
does not assume any liability for any financial or other loss resulting from
this memorandum in consequence of undertaking this activity. Therefore,
the content of this memorandum should not be relied upon for making any
decision, investment or otherwise. The prospective user of this
memorandum is encouraged to carry out his/her own due diligence and
gather any information he/she considers necessary for making an
informed decision. The content of the information memorandum does not
bind on M/S PASHUPATI INDUSTRIES in any legal or other form.

INDEX
1. INTRDUCTION .
................................................................................................ 4
2. MARKET POTENTIAL
......................................................................................................................
............4
3.BASIS AND
PRESUMPTIONS ..............................................................................................
..................... 5
4.TECHNICAL ASPECTS: PROCESSING AND BOTTLING ...
.......................................... 5
5.POLLUTION CONTROL
.....................................................................................................................
.6
6. ENERGY CONSERVATION
.....................................................................................................................
.6
7.QUALITY CONTROL STANDARDS
...................................................................................................... 6

8.FINANCIAL ANALYSIS

.....................................................................................................................
....... 8
8.1 PROJECT COST AND MEANS OF
FINANCE. ................................................................................. 8
8.2 BALANCE SHEET
........................................................................................................... 9
8.3 PROFIT AND LOSS
STATEMENT. ..................................................................................................... 10
8.4 CASH FLOW STATEMENT
................................................................................................................... 11
8.5 IMPORTANT RATIOS
.....................................................................................................................
..........12
8.6 BREAK EVEN POINT CALCULATIONS
............................................................................................ 13
8.7 CALCULATION OF FINANCE
COST................................................................................................... 14
8.8 SCHEDULE OF FIXED ASSETS
................................................................................ 16

PROJECT REPORT ON PACKAGED DRINKING WATER PLANT

1. INTRODUCTION
It is needless to mention that water, a compound of Hydrogen and
Oxygen is a precious natural gift which is very essential for survival of
mankind including animals. The water used for potable purposes should be
free from undesirable impurities. The water available from untreated sources
such as Well, Boreholes and Spring is generally not hygienic and safe for
drinking. Thus it is desirable and necessary to purify the water and supply
under hygienic conditions for human drinking purpose.

As the name implies, the mineral water is the purified water fortified
with requisite amounts of minerals such as Barium, Iron, Manganese, etc
which can be absorbed by human body. It is either obtained from natural
resources like spring and drilled wells or it is fortified artificially by
blending and treating with mineral salts. The mineral water shall be
manufactured and packed under hygienic conditions in properly washed and
cleaned bottles in sterilized conditions

2. MARKET POTENTIAL
Unfortunately sufficient safe potable water is not available everywhere
in the country; either harmful chemical substance is found in the layers of
the earth which enter into water or it may be contaminated due to
pathogenic micro-organisms. If such water is consumed, the body suffers
from water born diseases. Due to this, it has become imperative to process
and bottle safe potable water for the mankind in prevailing conditions. The
demand for purified water becomes more during summer season.

Although few companies have already entered in the bottling of safe

potable water and mineralized water, but still huge gap is there in between
demand and supply at all metropolitan-cities and towns. The product is
widely accepted in offices, restaurants, railway stations, airport, bus stands,
and hospitals and to some extent even in rich house-holds. So there is good
scope for establishing the units for processing and bottling plain and
mineralized drinking water in different parts of the country.

3. BASIS AND PRESUMPTIONS

This project has been drawn on the basis of the

following presumptions:

1.
2.
3.
4.
5.
6.

Working Hours
:Number of Shift per day
:Number of working days per annum
:
Total numbers of working hours
:Working efficiency Plant
:Total period of maximum capacity
utilization
:

8
1
300
48
75%
Third year from the date of
commencement of production

4. TECHNICAL ASPECTS: PROCESSING AND BOTTLING

As the name itself indicates that the proposed concern will purify the
available water in such a way that it may be kept 4-7 days at least as
well as it should be a hygienic. The major steps involved on the
purification process are given below:
Water
Purification

treatment

&

Mixing of negligible mineral and necessary for human life.

Jar Filling

Inspection
Packing

and

Dispatch

5. POLLUTION CONTROL
Although this unit will not affect the environment, but the entrepreneurs are
advised to obtain, No Objection Certificate from competent authority of State
Pollution Control Board. They should develop Kitchen Garden in the factory
premises to utilize waste water from the plant.

6. ENERGY CONSERVATION
Suitable measures should be adopted to use appropriate amount of fuel
and electricity. The promoters should arrange periodic auditing of electrical
consumption, as the unit will be running in three shifts. Unnecessary operation
of machines should be controlled to avoid excess consumption of electricity.
Natural ventilation in production premises may be made available to avoid use
of electric power during day hours.

7. QUALITY CONTROL STANDARDS

Quality of the product must be according to Beauro of Indian

standards and parameters of local municipal \ Food Controlling office

THE PROPOSED PROJECT

Brief Profile:
NAME

PASHUPATI INDUSTRIES

LOCATION OF THE PROJECT

VILL- AKBARPUR, PO- MATHURAPUR,

WARISNAGAR, SAMASTIPUR, DISTSAMASTIPUR, (BIHAR) PIN-848101.

PROMOTER

AJAY KUMAR SINGH

REGISTERED OFFICE

VILL- AKBARPUR, PO- MATHURAPUR,

WARISNAGAR, SAMASTIPUR, DISTSAMASTIPUR, (BIHAR) PIN-848101.

ADMINISTRATIVE OFFICE

VILL- AKBARPUR, PO- MATHURAPUR,

WARISNAGAR, SAMASTIPUR, DISTSAMASTIPUR, (BIHAR) PIN-848101.
EMAIL: PHONE:-

LINE OF ACTIVITY

RO WATER PLANT

SECTOR

PRIVATE

CONSTITUTION

PROPRIETORSHIP

INDUSTRY

WATER PURIFICATON

8. FINANCIAL ANALYSIS
8.1 PROJECT COST AND MEANS OF FINANCE
PROJECT COST:
PREMISES
PLANT & MACHINERY
COMPUTER
WORKING CAPITAL REQUIREMENTS

AMOUNT (Rs.)
1,25,000.00
12,15,000.00
32,500.00
1,52,500.00

TOTAL

15,25,000.00

MEANS OF FINANCING

AMOUNT (Rs.)

- PROMOTERS
TERM LOAN FROM BANK
TOTAL

8,25,000.00
7,00,000.00
15,25,000.00

8.2 BALANCE SHEET

Particulars
A. SOURCES OF FUNDS

PROMOTOR'S CAPITAL

1ST
YEAR

2ND
YEAR

YEAR

4TH
YEAR

5TH YEAR

8,25
,000

4,32
,500

4,32
,500

4,32
,500

4,32
,500

13
,495

1,94
,580

3,10
,192

5,50
,269

10,24
,612

8,3
8,495

6,2
7,080

7,4
2,692

9,8
2,769

14,5
7,112

5,92
,725

4,71
,125

3,33
,287

1,77
,042

RD

RESERVES & SURPLUS

-

PROFIT & LOSS

TOTAL PROMOTOR'S
FUNDS

TERM LOAN FROM BANK

UNSECURED LOAN

TOTAL

14,31
,220

10,98
,205

10,7
5,979

11,5
9,811

14,5
7,112

11,64,
500

9,95
,850

8,55
,414

7,36
,883

1,68

1,40

1,18

1,00

B. USE OF FUNDS:

GROSS FIXED ASSETS

ADDITIONS
LESS: DEPRECIATION

13,72,
500
2,08

10

,000

,650

,436

,531

,726

11,64
,500

9,9
5,850

8,5
5,414

7,3
6,883

6,3
6,157

CASH & BANK BALANCES

1,39
,220

55
,640

1,05
,000

2,70
,000

4,25
,000

NET CURRENT ASSETS

1,11
,500

34
,715

1,07
,565

1,48
,928

3,95
,954

MISC. EXPENDITURE

16
,000

12
,000

14,31
,220

10,98
,205

NET FIXED ASSETS

8,000

4,000

10,7
5,979

11,5
9,811

14,5
7,111

YEAR

2ND
YEAR

3RD YEAR

4TH YEAR

5TH YEAR

REVENUE:
RECEIPTS FROM
SALES
(NO. OF JAR @ Rs. 30 PER
JAR)

10,80,
000
36,
000

13,50,
000
45,
000

16,20,
000
54,
000

21,60,
000
72,
000

32,40,
000
1,08,
000

TOTAL

10,80
,000

13,50
,000

16,20
,000

21,60
,000

32,40
,000

3,60,
360
80,
000
15,
000
1,55,
000

4,50,
450
1,20,
000
25,
000
1,70,
500

5,40,
540
1,50,
000
40,
000
1,87,
550

7,20,
720
1,80,
000
50
,000
2,06,
305

10,81,
080
2,20,
000
70
,000
2,26,
936

10,
000
2,
500
4,
500
82,
145
4,
000
5,
000

20,
000
3,
000
6,
000
67,
820
4,
000
10,
000

30,
000
3
,500
7
,200
51,
582
4
,000
10,
000

40
,000
4
,000
8
,000
33
,175
4
,000
15
,000

50
,000
4
,500
9
,000
12
,147
4
,000
20
,000

TOTAL

8.3 PROFIT AND LOSS STATEMENT

Particulars

ST

OPERATING &
ADMINISTRATIVE
EXPENSES
RAW MATERIALS
ELECTRICITY EXPENSES
CONSUMABLE
SALARY & WAGES
RUNNING & MAINTENANCE
EXPENSES
POSTAGE & STATIONERY
TELEPHONE EXPENSES
FINANCE COST
MISC. ENPENDITURE W/OFF
LEGAL AND INSURANCE
COST

11

OPERATING PROFIT

3,6
1,495

4,7
3,230

5,95
,628

8,98
,800

15,42
,337

2,08,
000

1,68,
650

1,40,
436

1,18,
531

1,00,
726

1,5
3,495

3,0
4,580

4,55
,192

7,80
,269

14,41
,612

15,
000

20,
000

80
,000

2,57,
000

1,53,
495

2,89,
580

4,35,
192

7,00,
269

11,84,
612

DEPRECIATION

PROFIT

PROVISION FOR TAXATION

TRANSFER TO RESERVES

8.4 CASH FLOW STATEMENT

Particulars
INFLOW
Cash Accurals (PBTI)
Promotor's Capital
Unsecured Loan
Term Loan
DEPRECIATION

TOTAL INFOW
OUTFLOW
Preliminary and PreOperative Expenses
Increase In Capital
Expenditure
Increase in Current
Assets
Decrease in Term Loan
Decrease in Unsecured
Loan

0 YEAR

8,2
5,000
7,0
0,000
15,2
5,000

2
0,000
13,72
,500
1,5
2,500
-

2ND
YEAR

3RD
YEAR

4TH
YEAR

5TH
YEAR

2,3
5,640

3,8
7,400

5,2
6,774

8,9
3,444

17,10
,759

2,0
8,000

1,6
8,650

1,4
0,436

1,1
8,531

1,0
0,726

4,
43,640

5,5
6,050

6,6
7,210

10,1
1,975

18,1
1,485

-4
1,000
2,3
2,275
8
2,145

Interest on Term Loan

Taxation

Withdrawal by Promotor

TOTAL OUTFLOW

1ST
YEAR

15,4

7
5,715
1,2
1,600
-

3
1,850
1,3
7,838
-

1,1
7,078
1,5
6,245
-

2,7
8,876
1,7
7,042
-

1,2
1,000

6
7,820
1
5,000
3,5
9,495

5
1,582
2
0,000
3,7
6,580

3
3,175
8
0,000
4,6
0,477

1
2,147
2,5
7,000
9,3
1,420

3,

6,3

6,1

8,4

16,5

12

5,000

94,420

9,630

7,850

6,975

6,485

CASH & BANK

BALANCES

OPENING BALANCE

6
5,000

4
5,000

1,3
9,220

5
5,640

1,0
5,000

2,7
0,000

NET INFLOW

-2
0,000

4
9,220

-8
3,580

4
9,360

1,6
5,000

1,5
5,000

45,000

1,
39,220

5
5,640

1,0
5,000

2,7
0,000

4,
25,000

CLOSING BALANCE

8.5 IMPORTANT RATIOS

Partuculars

1ST YEAR

2ND YEAR

3RD YEAR

4TH YEAR

5TH YEAR

DEBT/EQUITY

0.71

0.75

0.45

0.18

OPERATING PROFIT/INCOME

33.47

35.05

36.77

41.61

47.60

PAT/INCOME

14.21

22.56

28.10

36.12

44.49

RETURN ON TOTAL ASSETS

10.72

26.37

40.45

60.38

81.30

RETURN ON NET WORTH

18.31

46.18

58.60

71.25

81.30

DIVIDEND PAYOUT RATIO

2.87

5.27

9.44

22.11

98.52

DEBT SERVICE CONVERAGE

(PAT BEFORE INTEREST/
INTEREST)

13

8.6 BREAK EVEN POINT CALCULATIONS

1ST YEAR
10,80
,000

2ND YEAR
13,50
,000

3RD YEAR
16,20
,000

4TH YEAR
21,60
,000

5TH YEAR
32,40
,000

3,60,
360
80,
000
15,
000
1,55,
000

4,50,
450
1,20,
000
25,
000
1,70,
500

5,40,
540
1,50,
000
40,
000
1,87,
550

7,20,
720
1,80,
000
50
,000
2,06,
305

10,81,
080
2,20,
000
70
,000
2,26,
936

TOTAL

10,
000
6,2
0,360

20,
000
7,8
5,950

30,
000
9,48
,090

40
,000
11,97
,025

50
,000
16,48
,016

CONTRIBUTIONS

4,5
9,640

5,6
4,050

6,71
,910

9,62
,975

15,91
,985

TOTAL

2,
500
4,
500
82,
145
4,
000
10,
000
1,0
3,145

3,
000
6,
000
67,
820
4,
000
10,
000
9
0,820

3
,500
7
,200
51,
582
4
,000
10,
000
76
,282

4
,000
8
,000
33
,175
4
,000
15
,000
6
4,175

4
,500
9
,000
12
,147
4
,000
20
,000
4
9,647

BREAK-EVEN POINT (%)

22.44

16.10

6.66

3.12

Particulars
GROSS REVENUE
VARIABLE EXPENSES
RAW MATERIALS
ELECTRICITY EXPENSES
CONSUMABLE
SALARY & WAGES
RUNNING & MAINTENANCE
EXPENSES

FIXED EXPENSES
POSTAGE & STATIONERY
TELEPHONE EXPENSES
FINANCE COST
MISC. ENPENDITURE W/OFF
LEGAL AND INSURANCE
COST

11.35

14

8.7 CALCULATION OF FINANCE COST

Repayme
nt

Princip
al
Payme
nt

Interse
t@
12.60
%

Principal
amount at
the end of
year

7,00,
000
6,91,
565
6,83,
041
6,74,
428
6,65,
725
6,56,
930
6,48,
043
6,39,
062
6,29,
987
6,20,
817
6,11,
551
6,02,
187

15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5

8,4
35
8,5
24
8,6
13
8,7
04
8,7
95
8,8
87
8,9
81
9,0
75
9,1
70
9,2
66
9,3
64
9,4
62

6,91,5
65
6,83,0
41
6,74,4
28
6,65,7
25
6,56,9
30
6,48,0
43
6,39,0
62
6,29,9
87
6,20,8
17
6,11,5
51
6,02,1
87
5,92,7
25

Finance cost for 1st Year

5,92,
13
725
5,83,
14
164
5,73,
15
502
5,63,
16
739

15,78
5
15,78
5
15,78
5
15,78
5

9,5
61
9,6
62
9,7
63
9,8
66

7,3
50
7,2
61
7,1
72
7,0
81
6,9
90
6,8
98
6,8
04
6,7
10
6,6
15
6,5
19
6,4
21
6,3
23
82,1
45
6,2
24
6,1
23
6,0
22
5,9
19

Mont
h

1
2
3
4
5
6
7
8
9
10
11
12

Principal of Term
Loan at
beginning of the
year

5,83,1
64
5,73,5
02
5,63,7
39
5,53,8
73

15

5,53,
873
5,43,
904
5,33,
830
5,23,
650
5,13,
363
5,02,
968
4,92,
465
4,81,
850

15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5

9,9
69
10,0
74
10,1
80
10,2
87
10,3
95
10,5
04
10,6
14
10,7
26

Finance cost for 2nd Year

4,71,
25
125
4,60,
26
287
4,49,
27
335
4,38,
28
268
4,27,
29
085
4,15,
30
784
4,04,
31
365
3,92,
32
825
3,81,
33
165
3,69,
34
382
3,57,
35
476
3,45,
36
444

15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5

10,8
38
10,9
52
11,0
67
11,1
83
11,3
01
11,4
19
11,5
39
11,6
60
11,7
83
11,9
06
12,0
32
12,1
58

Finance cost for 3rd Year

3,33,
37
287
3,21,
38
001
3,08,
39
587
2,96,
40
042
41
2,83,

15,78
5
15,78
5
15,78
5
15,78
5
15,78

12,2
85
12,4
14
12,5
45
12,6
77
12,8

17
18
19
20
21
22
23
24

5,8
16
5,7
11
5,6
05
5,4
98
5,3
90
5,2
81
5,1
71
5,0
59
67,8
20
4,9
47
4,8
33
4,7
18
4,6
02
4,4
84
4,3
66
4,2
46
4,1
25
4,0
02
3,8
79
3,7
53
3,6
27
51,5
82
3,5
00
3,3
71
3,2
40
3,1
08
2,9

5,43,9
04
5,33,8
30
5,23,6
50
5,13,3
63
5,02,9
68
4,92,4
65
4,81,8
50
4,71,1
25
4,60,2
87
4,49,3
35
4,38,2
68
4,27,0
85
4,15,7
84
4,04,3
65
3,92,8
25
3,81,1
65
3,69,3
82
3,57,4
76
3,45,4
44
3,33,2
87
3,21,0
01
3,08,5
87
2,96,0
42
2,83,3
65
2,70,5

16

365
2,70,
555
2,57,
611
2,44,
531
2,31,
314
2,17,
958
2,04,
461
1,90,
823

5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5

10
12,9
44
13,0
80
13,2
17
13,3
56
13,4
96
13,6
38
13,7
81

Finance cost for 4th Year

1,77,
49
042
1,63,
50
116
1,49,
51
043
1,34,
52
823
1,20,
53
454
1,05,
54
934
91,
55
261
76,
56
434
61,
57
452
46,
58
312
31,
59
013

15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5
15,78
5

13,9
26
14,0
72
14,2
20
14,3
69
14,5
20
14,6
73
14,8
27
14,9
82
15,1
40
15,2
99
15,4
59

42
43
44
45
46
47
48

60

Finance cost for 5th Year

2,35,1
Total
1,327

9,31,3
15

6,84,4
46

75
2,8
41
2,7
05
2,5
68
2,4
29
2,2
89
2,1
47
2,0
04
33,1
75
1,8
59
1,7
13
1,5
65
1,4
16
1,2
65
1,1
12
9
58
8
03
6
45
4
86
3
26
12,1
47
2,46,8
69

55
2,57,6
11
2,44,5
31
2,31,3
14
2,17,9
58
2,04,4
61
1,90,8
23
1,77,0
42
1,63,1
16
1,49,0
43
1,34,8
23
1,20,4
54
1,05,9
34
91,2
61
76,4
34
61,4
52
46,3
12
31,0
13
2,28,11,
327

17

8.8 SCHEDULE OF FIXED ASSETS

ASSETS

YEA
R
I

PARTICULARS

OPENING BALANCE
LESS: DEPRECIATION

II

WDV AT END OF 1ST YEAR

LESS: DEPRECIATION

III

WDV AT END OF 2ND YEAR

LESS: DEPRECIATION

IV

WDV AT END OF 3RD YEAR

LESS: DEPRECIATION

WDV AT END OF 4TH YEAR

LESS: DEPRECIATION
WDV AT END OF 5TH YEAR

LAND &
BUILDING

COMPUTE
R

PLANT &
MACHINERY

RATE OF
DEP. 5%

RATE OF
DEP. 60%

RATE OF
DEP. 15%

1,25,
000.00
6,
250.00
1,18,
750.00
5,
937.50
1,12,
812.50
5,
640.63
1,07,
171.88
5,
358.59
1,01,
813.28

32,50
0.00
19,50
0.00
13,00
0.00
7,80
0.00
5,20
0.00
3,12
0.00
2,08
0.00
1,24
8.00
83
2.00

12,15,0
00.00
1,82,2
50.00
10,32,7
50.00
1,54,9
12.50
8,77,8
37.50
1,31,6
75.63
7,46,1
61.88
1,11,9
24.28
6,34,2
37.59

5,09
0.66
96,72
2.62

499.
20
332.
80

95,135
.64
5,39,101
.95

TOTAL
13,72,5
00.00
2,08,0
00.00
11,64,5
00.00
1,68,6
50.00
9,95,8
50.00
1,40,4
36.25
8,55,4
13.75
1,18,5
30.88
7,36,8
82.88
1,00,7
25.50
6,36,1
57.37

18

19

20

21

22

23

24

25

26

27