ACKNOWLEDGEMENTS “OUR BEST THOUGHTS COME FROM OTHERS” The successful completion of any research project requires guidance and help from a number of people. I was fortunate to have all the support. I feel greatly honored in availing this opportunity of expressing my deep gratitude to “Dr. E.M KHAN” principal of ABEDA INAMDAR SENIOR COLLEGE OF ARTS SCIENCE AND COMMERCE PUNE for providing me this opportunity and guiding me with academics and project work.
Transcript
ACKNOWLEDGEMENTS
“OUR BEST THOUGHTS COME FROM OTHERS”
The successful completion of any research project requires guidance and help
from a number of people. I was fortunate to have all the support.
I feel greatly honored in availing this opportunity of expressing my deep gratitude
to “Dr. E.M KHAN” principal of ABEDA INAMDAR SENIOR COLLEGE OF
ARTS SCIENCE AND COMMERCE PUNE for providing me this opportunity
and guiding me with academics and project work.
I feel greatly delighted to express my deepest sense of gratitude to my learned and
esteem teacher Ms. Shakira shaikh for her valuable assistance, keen interest and
constant motivation at each step and for spending her precious time, without her
help, it would have not been possible for me to complete the project
Last but not the least, I express my sincere thanks to all those people, known and
unknown, who have contributed in making this project a success.
DECLARATION
I, the undersigned, hereby declare that the following documented Project
Report titled “BUSINESS LOAN ON SUNRISE AUTOMATIC BAKERY” is a
bonafide work prepared by me. This is an organized and authentic work carried by
me for the partial fulfillment of the Bachelor of Business Administration. The
findings in this project report are based on the data collected by me from different
sources.
All the deeds put in the fulfillment of the task are genuine and original to best of
my knowledge.
Date:-
Place :- WASIM KHAN
PREFACE
Here are discussing about the project .here we will find out sources
and application of funds, calculation of the revenue, calculation of the
expenditure, interest and installment, calculation of depreciation, cash flow
statement, projected profit & loss a/c, balance sheet.
INDEX
Serial no. Particulars Page no.
1 INTRODUCTION
1.1 SCOPE
1.2 OBJECTIVES
1.3 LIMITATIONS
1.4 VISION AND MISSION
2 ORGANISATION PROFILE
3 RESEARCH METHODOGY
4 FINANCIAL ANALYSIS
4.1 FINANCIAL STATEMENT OF PROJECT
4.2 CALCULATION OF THE REVENUE
4.3 CALCULATION OF EXPENDITURE
4.4 EMI CALCULATION
4.5 CALCULATION OF DEPRECIATION
4.6 PROJECTED CASH FLOW STATEMENT
4.7 PROJECTED BALANCE SHEET
4.8 RATIO ANALYSIS
5 CONCLUSION
5.1 CONCLUSION
5.2 SUGGESTION
5.3 BIBILOGRAPHY
Chapter - 1
INTRODUCTION
SCOPE OF THE PROJECT
The study has a scope to analyze the different loan Schemes of bank and choose
best among them.
The study provides information regarding documentation, paper work and
other important factors involved in getting term loan.
To be competitive and successful in modern corporate world, constant
capital flow is essential. Whether to expand your business or to relocate your
production unit to some other place for cost effectiveness, you require
finance. It’s not always possible to fund them through interest sources. A
delay of a few days can cost you in millions.
Objectives of the Project
To learn preparation of Projected Financial Statements
To learn Deep Analysis of financial Statements
To get knowledge about Loan Procedure
To get knowledge of prevailing Tax-Rate and Depreciation rates
To get knowledge about the popular SMEs for Self employment
To get knowledge about different Bank Policies for granting Loans.
To get experience of effective and efficient working of an enterprise.
To get practical knowledge about sanctioning loan from bank.
To help the firm by telling its solvency, payment policies etc. with the help
of various different ratios.
LIMITATIONS OF THE PROJECT
Due to the strict confidential policy of the bank the accounts department
provided only screened information.
Accuracy of the data cannot be guaranteed.
Due to the busy schedule of the manager of the bank the information is very
limited.
MISSION AND VISSION
To become the largest chain of fine bakery products provider in the
Ahmednagar and enjoy equity that is enjoyed by no other stand alone private
bakery.
To constantly provide quality, taste and services at rational price.
To create wonderful experience uniqueness lies in its elegance refining
which is brought alive by caring their customer.
To provide unique service at rational price and to continually improve our
services and by ensuring to continues satisfaction of the clients.
We shall ensure high standards of safety and security while at manufacturing
which doesn’t harm the environment in any way.
Chapter -2
Company Profile
SUNRISE AUTOMATIC BAKERS
Sunrise Bakers is a new venture established in 2009 by Abdul Rehman
Chaus.It is a single ownership business setup there is no partner in the business .
The interest of mass in bakery business has been increasing day by day. But,
Sunrise Bakers is successful in attracting more and more customers by its fluent
service and product quality.
It provides quality products with efficient quantity. The behavior with the
customers is specially taken care off. which attracts more customers to buy the
bakery products.
The bakery focuses mainly on two areas:
Profit maximization
Customer satisfaction
Company Profile
PROFILE OF THE COMPANY
Legal Name SUNRISE AUTOMATIC BAKERY
Location PLOT NO. 150 INDL.ESTATE, PUNE ROAD, AHMEDNAGAR - 414005, MAHARASHTRA, INDIA
Salary and wages are on monthly basis.Sr. No. Designation No. Rate Amount
1 Salary 3 10000 30000
2 Wages 5 7000 35000
Total 65000
CHAPTER – 4
RESEARCHMETHODOLOGY
Research:
Research is a careful of critical inquiry or examination in seeking facts or principles, diligent investigation in order to ascertaining something
Research is the manipulation of things, concepts or symbols for the process of generalizing to extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in the practice of an art
Research is a more systematic activity directed towards discovery and development of an organized body of knowledge
METHODS OF DATA COLLECTION
1. Primary Data2. Secondary Data
1. Primary Data:
Primary data are obtained by a study specifically designed to fulfill the data needs of the problem at hand. Such data are original in character and are governed in large number of surveys conducted mostly by government and also by some individuals, institutions and research bodies.
2. Secondary Data:Data which is not originally collected but rather obtained
from published and unpublished sources are known as secondary data .The secondary data constitute the chief material on the basis of which statistical work is carried out in many investigations.
ADVANTAGES TO USE THE PRIMARY SOURCE
1. Primary source shows data in regular detail.2. It frequently defines terms and nits used.3. The secondary source may contain mistakes due to errors in transcription
made when the figures were copied from the primary source.
ADVANTAGES OF SECONDARY DATA:
1. If secondary data are available, they are much quicker to obtain than primary data.
2. It may available on some subjects where it would be impossible to collect primary data.
METHODS OF DATA COLLECTION
The methods and the techniques that can be uses to generate the primary as well as the secondary data are as follows:
1. Visiting Bank.2. By going through the website on the internet.3. By words of mouth.4. Information provided by the bank.
DOCUMENTS REQUIRED FOR SANCTION OF LOAN FOR BUSINESS
1. Proof of identity. (Copy of sales tax/ vat/ Service tax/ Excise registration
receipt or registration under shop and establishment act or pan/ It return of
the concern or water/ Electricity municipal tax bill in the name of concern)
2. Proof of individual identity. (Copy of passport/ Voters identity card/ Photo
pan card/ Driving license)
3. Proof of residence address. (Copy of passport/ Voters identity card/ Driving
license/ Ration card/ Life insurance policy/ Electricity bill/ Telephone bill)
4. Pan number / form 60 of the concern.
5. Financial documents. (Copy of P&L a/c and Balance sheet for last two
years, Audited by a C.A and copies of it returns for the last two years)
6. Bank statement for last 6 months.
7. Partnership deed. (Required only in case of partnership firm)
8. Proof of place of business.
9. Two passport size photographs.
PURPOSE OF THE LOAN
The basic idea behind taking the loan from the bank is to start a new Bakery.
The company is supposed to provide services consistently with taking good care of the users.
The firm requires term loan of Rs.962500.00 to set up a company..
The most essential part of taking loan from the bank is to have working capital in hand.
The loan taken from the bank will repaid in five years.
CHAPTER - 4
FINACIAL ANALYSIS
Projected cost
Sr.no. Fixed capital Amount
1 Equipments 800000
2 Furniture 100000
3 Computer 20000
4 Fixtures 10000
Total 930000
Sr. no. Working capital Amount1 Raw material 1850002 Labours 350003 Utility 15000
To salary 392400 By gross profit 2350200To advertisement 65400To transport 130800To sundry 65400To telephone 26160To electricity 196200To rent 261600To packing 104640To interest 51728To depn 67589To preli.exp.w/o
3000
To NPBT 985283 2350200
Cash flow statement
inflow Amount Outflow AmountOpening cash 2202357 Working capital 4316400sales 5424000 Tax 78822
EMI 268748Cash in hand 2962387
7626357 7626357
Balance sheet
liabilities Amount Assets AmountOwn capital 3414255 Fixed assets 598301
Bank loan 249433 Cash in hand 2962387
Deposit 100000Preliminary ex. 3000
3663688 3663688
5th year
Trading and profit and loss accountParticulars Amount Particulars AmountTo purchases 2464200 By sales 5520000To wages 466200To utilities 199800To gross profit 2389800
5520000 5520000
To salary 399600 By gross profit 2389800To advertisement 66600To transport 133200To sundry 66600To telephone 26640To electricity 199800To rent 266400To packing 106560To interest 19317To depn 60330To preli.exp.w/o
3000
To NPBT 1041753 2389800
Cash flow statement
Inflow Amount Outflow AmountOpening cash 2962387 Working capital 4395600Sales 5520000 Tax 83340
EMI 268748Cash in hand 3734699
8482387 8482387
Balance sheet
liabilities Amount Assets AmountOwn capital 4372668 Fixed assets 537971
Bank loan 0 Cash in hand 3734699
Deposit 100000Preliminary ex. 0
4372670 4372670
YEARLYCASH IN HAND GRAPH
year1 year2 year3 year4 year50
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
852437
1498998
2202357
2962387
3734699
Series 1
CALCULATION OF RATIO ANALYSIS
Year Net profit ratio=sales/net profit1 4800000/561377=8.552 5136000/720947=7.123 5280000/812970=6.494 5424000/906461=5.985 5520000/958413=5.75
Year Fixed assets to current assets=fixed assets/current assets1 829000/952437=0.872 742100/1598998=0.463 665890/2302357=0.284 598301/3062387=0.195 537971/3834699=0.14
Year Debt service coverage ratio=Net profit after tax+depreciation+interest/interest+installment
After the study we came to the conclusion that loan sanction required too
many legal formalities to be completed and many legal documents to be submitted
to the bank but since the confectionary industry is the rising industry we can get
the loan sanctioned easily.
From this observation we can say that bakery business can be in profit which
will enable us to pay back the loan installment on time.
SUGGESTIONS
The Bakery should perform its activities according to the pre- planned.
Continuous taking of the customer are one of the main reason for growth of the business.
To be a successful Company and aiming to expand business in future and all the necessary activities should be done in advance which will make you approach your dream.
