DETAILED PROJECT REPORT
Of
MUKNOGY MICRO FINANCE
FOUNDATION
S1, 2ND Floor, Trade Center 10, Near Lal Koti Sabhji Mandi, Sahkar Marg,
Jaipur 302015
Project at:
AJMER
For
INVESTORS MEET
Prepared By:
M/s. YASH DANI & CO.
CHARTERED ACCOUNTANTS
3rd Floor, Opp. Hotel Payal,
Agra Gate Circle, P.R. Marg,
Ajmer-305001
Cont: 9509583991 / 9549583991
1
Table of Content
Sr. Particulars Page Nos.
No.
1 About the Organization and their Promoters
2 Profile of Promoters & Key Management Personnel
Details about Licenses & various statutory registration of the
3
company.
4 About The Project & Cost Of Project, Means of Finance
5 Land and Site Analysis
6 Promoters own Contribution along with unsecured loans
7 Details of Term Loans
8 Security For Project Finance
9 SWOT Analysis
10 Affiliations
11 Statistics related to the Industry Growth
12 Financial Feasibility Report
2
ABOUT THE ORGANISATION
MUKNOGY MICRO FINANCE FOUNDATION has been established with a vision of
carrying on the business of microfinance to give low income people an opportunity to
become self-sufficient by providing a means of saving high cost of borrowing
(especially from private lenders), borrowing money for business and insurance. It
covers a wide range of services which are also non-financial services like training,
counseling, health, other various social activity related services.
Microfinance sector has grown rapidly over the past few decades. Nobel Laureate
Muhammad Yunus is credited with laying the foundation of the modern MFIs with
establishment of Grameen Bank, Bangladesh in 1976. Today it has evolved into a
vibrant industry exhibiting a variety of business models.
Microfinance Institutions (MFIs) in India exist as NGOs (registered as societies
or trusts), Section 25 companies and Non-Banking Financial Companies
(NBFCs). Commercial Banks, Regional Rural Banks (RRBs), cooperative societies
and other large lenders have played an important role in providing refinance facility
to MFIs. Banks, Small Bank, have also leveraged the Self-Help Group (SHGs)
channel to provide direct credit to group borrowers.
Salient Features of Microfinance
Borrowers are from the low income group
Loans are of small amount – micro loans
Short duration loans
Loans are offered without collaterals
High frequency of repayment
Loans are generally taken for income generation purpose
The World Bank In India
With a population of more than 1.2 billion, India is the world’s largest democracy.
Over the past decade, the country’s integration into the global economy has been
accompanied by economic growth. India has now emerged as a global player.
As the world’s third largest economy in purchasing parity terms, India aspires
to better the lives of all its citizens and become a high-middle income country
by 2030. Between 2011-15, more than 90 million people escaped extreme poverty
and improved their living standards thanks to robust economic growth. However,
India’s growth rate has decelerated in the past two years.
In recent years, the country has made a significant dent in poverty levels, with
extreme poverty dropping from 46 percent to an estimated 13.4 percent over the two
decades before 2015. While India is still home to 176 million poor people, it is
seeking to achieve better growth, as well as to promote inclusion and sustainability
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by reshaping policy approaches to human development, social protection, financial
inclusion, rural transformation.
The Regd. Office of the Company is situated at:
S1, 2nd Floor, Trade Center 10, Near Lal Koti, Sabhji Mandi, Sahkar Marg, Jaipur 302015
The First Branch will be located at:
Ajmer
PROMOTERS DETAILS:
Name No of Shares
TARUN SUMAN 5000
DEEPA PAL 5000
KEY MANAGEMENT PERSONS:
Key Task
Name Designation
MANAGING CEO
TARUN SUMAN
DIRECTOR
DEEPA PAL DIRECTOR BUSINESS HEAD
4
PROFILE OF PROMOTOR & KEY MANAGEMENT PERSONNEL
Name: Tarun Suman
Fathers Name: Late Vijay Prakash Suman
Address: A21, Aggrasen Colony, Near PNB, Brahmpuri
Road. Jaipur 302002
Contact: +91-9828100631
Email-id: [email protected]
PAN No. ANVPS3107N
Aadhar No.: 501634490249
Date of Birth – 14/09/1980
DIN No. 01685808
Qualification – B.COM
Current Business or Occupation:
Designation :- Financial Consultant
Work Experience, Functional Responsibility & Privileges to the unit
Sept 2000, GE, 2012 left. Splendid partnership company
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PROFILE OF PROMOTOR & KEY MANAGEMENT PERSONNEL
Name: Deepa Pal
Photo
Fathers Name: Umroa Singh
Address :
Daanmal Mathur Colony Gulabari, House no.9, Ward No.39,
AJMER-305001, Rajasthan
Contact : 6375197890
Email-Id: [email protected]
PAN No. : CISPP9185P
Aadhar No: 559102813006
Date of Birth – 15/08/1978
DIN no: 08178509
Qualification – B.A
Current Business or Occupation :
Designation :- Director
Work Experience: More than 10 years
Work Experience, Functional Responsibility & Privileges to the unit
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MICRO FINANCE
Content : Branch Survery Report
Branch : Ajmer
Sources : MFIN & Branch visits done at competitors office
Name of the Survey Manager : Deepa Pal (Survey submitted by internal team)
Date : 15/11/2019
Ajmer District is a district of the state of Rajasthan in western India. The city of Ajmer is the
district headquarters.
Ajmer District has an area of 8,481 sq km², and a population of 2,180,526 (2001 census).
Three main religions are; Hindu 1,869,044, Muslim 244,341, Jains 47,812. The district is
situated in the center of Rajasthan, and is bounded by Nagaur District to the
north, Jaipur and Tonk districts to the east, Bhilwara District to the south, and Pali District to
the west.
What is the population of Ajmer in 2019? The fact is, last census for Ajmer district was done
only in 2011 and next such census would only be in 2021. But as per estimate and projection,
population of Ajmer district in 2018 is 28.34 Lakhs compared to 2011 census figure of 25.83
Lakhs.
Ajmer Table Data
Description 2011 2001
Population 25.83 21.82 Lakhs
Lakhs
Actual Population 25,83,052 21,81,670
Male 13,24,085 11,29,920
Female 12,58,967 10,51,750
Population Growth 18.40% 20.93%
Area Sq. Km 8,481 8,481
Density/km2 305 257
Male Literacy 82.44 79.39
Female Literacy 55.68 48.9
Literates 15,26,673 11,68,856
Male Literates 9,26,268 7,42,535
Female Literates 6,00,405 4,26,321
Out of the total Ajmer population for 2011 census, 40.08 percent lives in urban
regions of district. In total 1,035,410 people lives in urban areas of which males are
534,688 and females are 500,722.
As per 2011 census, 59.92 % population of Ajmer districts lives in rural areas of
villages. The total Ajmer district population living in rural areas is 1,547,642 of which
males and females are 789,397 and 758,245 respectively. In rural areas of Ajmer
district, sex ratio is 961 females per 1000 males
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Future Branch Proposals that can be looked into or spoke location
City/Metros in Ajmer District
Populatio
Cities inside Ajmer District n Male Female
Ajmer Municipal Corporation 5,42,321 2,78,545 2,63,776
Kishangarh - Municipal Council 1,54,886 80,024 74,862
Beawar - Muncipal Council 1,45,504 74,698 70,806
Map of Ajmer and its Vicinity for potential business
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Area Wise & Manpower Work Analysis
Work Area Analysis:
# of Distance
Proposed
Sub-area Name House from branch
clients
Area RO # holds (in kms)
Middle -
Office RO-1
East RO-2
West RO-3
North RO-4
South RO-5
TOTAL
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Competitor’s analysis:
Parameters Competitor 1 Competitor 2 Competitor 3 Competitor 4
Operations Since (No of Yrs)
No. Of Branches
No. of Members
Radius in KM
POS in cr
Centre size
No of days CGT
Disbursement TAT
Place of Disbursement
Mode of Disbursement
KYC
Loan
Additional Loan
Re-Payment
OD
Remarks
RBI Norms
OBSERVATION NOTES :
Business projections:
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Sr # Months No of customer acquisition Remarks
Disbursements
1 Dec-19 140 customers 35 lacs
2 Jan-20 140 customers 35 lacs
3 Feb-20 140 customers 35 lacs
4 Mar-20 140 customers 35 lacs
5 Apr-20 140 customers 35 lacs
Total 700 Customers 175 lacs
The business projection is calculated based on the ticket size
20000 loan amount – 50 customers
25000 loan amount – 40 customers
30000 loan amount – 50 customers
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13
Details about Licenses and Various Statutory Registrations of the Company:
With
S. No. Nature of
Name of Authority Effect Regn No
Registration
From
1. Company Ministry of Corporate
06/12/2016 U65100RJ2016NPL056592
Incorporation Affairs
2. PAN Income Tax Dept 19/07/2016 AAOCA6570E
3. Goods and Service
GST No. 08AAOCA6570E2ZG
Tax Department
ABOUT THE PROJECT & COST OF PROJECT
COST OF PROJECT:-
Fig in Rs
Cost of Project and Means of Finance
Particulars Proposed
Cost of Project:
Furniture and Fixtures 100,000
Computers and Printers 350,000
Electrical Fiitings and Wirings 50,000
Working Capital 29,500,000
Total 30,000,000
Means of Finance:
Subscribed Capital 30,000,000
Directors Loan (Out of Own Funds) -
Total 30,000,000
Authorised Capital 30,000,000
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Statement showing the estimated earnings
Years
Particulars 2020-2021 2021-2022 2022-2023 2023-24 2024-25
Estimated Earnings
12,696,44 32,135,70 44,307,59
1.) Interest Income 2 17,179,750 23,529,833 5 6
380,89 964,07 1,329,22
Less: NPA 3% approx 3 515,392 705,895 1 8
12,315,54 31,171,63 42,978,36
Net Interest Income Receivable 8 16,664,357 22,823,938 4 8
3,389,38 6,898,41 9,529,16
2) Processing fees 0 3,684,529 5,010,314 8 5
15,704,92 38,070,05 52,507,53
TOTAL RECEIPTS 8 20,348,886 27,834,252 2 4
STATEMENT SHOWING SHARE CAPITAL OF THE COMPANY
No of Per Share
Particulars Shares Price Amount
Authorised Capital
3,000,00
Equity Shares Rs.100 Per Share 0 10 30,000,000
Issued Capital
3,000,00
Equity Shares Rs.100 Per Share 0 10 30,000,000
Subscribed and Paid up Capital
3,000,00
Equity Shares Rs.100 Per Share 0 10 30,000,000
3,000,00
Total 0 10 30,000,000
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PROJECTED PROFIT AND LOSS ACCOUNT
(fig in Rs.)
S.No. Particulars 2020-2021 2021-2022 2022-2023 2023-24 2024-25
REVENUE
15,704,92 20,348,88 27,834,25 38,070,05 52,507,53
Receipts as per Sheet attached 8 6 2 2 4
15,704,92 20,348,88 27,834,25 38,070,05 52,507,53
A Total Revenue 8 6 2 2 4
EXPENSES
1,944,00 2,041,20 2,881,20 3,025,26 3,176,52
Less: Salary Payments 0 0 0 0 3
60,00 63,00 66,15 89,30 120,55
Electricity and Telephone charges 0 0 0 3 8
420,00 525,00 656,25 885,93 1,107,42
Rent 0 0 0 8 2
120,00 144,00 172,80 233,28 314,92
Advertisment and other charges 0 0 0 0 8
60,00 63,00 72,45 84,00 92,40
Miscellaneous Expenses 0 0 0 0 0
67,50 58,12 50,08 43,17 37,24
Depreciation 0 5 1 7 7
2,671,50 2,894,32 3,898,93 4,360,95 4,849,07
B Total Expenses 0 5 1 7 8
222,62 241,19 324,91 363,41 404,09
Expenses Per Month (total/12) 5 4 1 3 0
13,033,42 17,454,56 23,935,32 33,709,09 47,658,45
C Profit before taxation 8 1 1 5 6
D Provision for taxes (Current)
13,033,42 17,454,56 23,935,32 33,709,09 47,658,45
E Net profit after taxation 8 1 1 5 6
13,033,42 17,454,56 23,935,32 33,709,09 47,658,45
G Net cash Accruals 8 1 1 5 6
H Earning Per Share 4.34 5.82 7.98 11.24 15.89
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PROJECTED BALANCE SHEET
(Fig in Rs.)
Years
PARTICULARS 2020-2021 2021-2022 2022-2023 2023-24 2024-25
EQUITY AND LIABILITIES
30,000,00 30,000,00 30,000,00 30,000,00 30,000,00
i) Share Capital 0 0 0 0 0
13,033,42 30,487,98 54,423,31 88,132,40 135,790,86
ii) Reserves and surplus 8 9 0 6 1
43,033,42 60,487,98 84,423,31 118,132,40 165,790,86
Shareholder Funds 8 9 0 6 1
iii) Term Loan - - - - -
iv) Provision for Taxation - - - - -
43,033,42 60,487,98 84,423,31 118,132,40 165,790,86
TOTAL 8 9 0 6 1
ASSETS
Non Current Assets
500,00 432,50 374,37 324,29 281,11
i) Gross Block 0 0 5 4 7
67,50 58,12 50,08 43,17 37,24
Less:- Depreciation 0 5 1 7 7
432,50 374,37 324,29 281,11 243,87
Net Block 0 5 4 7 0
Current Assets
100,00 125,00 156,25 195,31 244,14
ii) Other Assets 0 0 0 3 1
32,935,31 47,189,65 64,471,02 88,792,45 122,964,70
iii) Loans to Customers 1 7 3 6 3
9,565,61 12,798,95 19,471,74 28,863,52 42,338,14
iii) Cash and Bank Balance 8 8 3 0 7
43,033,42 60,487,98 84,423,31 118,132,40 165,790,86
TOTAL 8 9 0 6 1
14.3 20.1 28.1
Value Per Share (Asset Method) 4 6 4 39.38 55.26
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PROJECTED CASH FLOW STATEMENT
(Fig in Rs.)
Particulars 2020-2021 2021-2022 2022-2023 2023-24 2024-25
A. Sources of funds
13,033,42 17,454,56 23,935,32 33,709,09 47,658,45
1 Profit before taxation 8 1 1 5 6
30,000,00
2 Increase in share capital 0 - - -
67,50 58,12 50,08 43,17 37,24
3 Depreciation 0 5 1 7 7
4 Increase in Long term loan - - - - -
43,100,92 17,512,68 23,985,40 33,752,27 47,695,70
Total Sources (A) 8 6 2 2 2
B Application of Funds
500,00
1 Increase in Capital Exp. 0 - - - -
100,00 25,00 31,25 39,06 48,82
2 Increase in Current Assets 0 0 0 3 8
Increase in Loans to 32,935,31 14,254,34 17,281,36 24,321,43 34,172,24
3 Customers 1 6 7 3 6
4 Tax paid - - - - -
33,535,31 14,279,34 17,312,61 24,360,49 34,221,07
Total Application (B) 1 6 7 5 5
9,565,61 12,798,95 19,471,74 28,863,52
Opening Bal - 8 8 3 0
9,565,61 3,233,34 6,672,78 9,391,77 13,474,62
Net Surplus (A-B) 8 0 5 7 8
9,565,61 12,798,95 19,471,74 28,863,52 42,338,14
Closing Balance 8 8 3 0 7
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LAND & SITE ANALYSIS:-
For the purpose of starting and expanding the manufacturing unit of the company, Company has taken
a Factory on lease of 5 years for which company has already entered into an agreement with the
Landlord.
COMPANY’S CONTRIBUTION (QUASI CAPITAL):-
For the above purpose the Company will contribute out of its own Reserves and Surplus along with it
Company Directors will also arrange some unsecured loans from themselves and their relatives.
TERM LOAN: -
Directors have decided to make an application for the term loan of Rs 35 Lakhs and Working
Capital Limit of Rs.10 Lacs. The rate of interest for the both the proposal is considered
12.00% p.a. on term loan
Particulars Amount
Term Loan (Proposed Loan) 35 Lakhs
Working Capital Limit 10 Lakhs
Total 45 Lakhs
SECURITY FOR PROJECT FINANCE
SECURITY:
Primary security:-
A. For Term Loan and Working Capital: Hypothecation of House Property situated at
419/33, Balu Ram Building, Near Shahi Masjid, Pal Bichla, AJMER-305001, Rajasthan.
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B. Estimated Value of the Security: House Property
Secondary Security:
Equitable Mortgage on the Machineries acquired out the loan amount
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SWOT ANALYSIS
STRENGTH
a. Lesser Operating cost
b. Ability to provide financial service to the poor at their door steps
c. Low Cost of Infrastructure
d. Experienced Management
e. Estimated that in next 5 years, 65% of the bottom line, will have access to MFIs
f. Almost all the pvt banks and foreign banks are entering into this segment due to low NPA
g. Upliftment of women workforce
WEAKNESS
a. Competition making this business deviate from the path of social services / upliftment and
now this business has merely become profit center
b. Customers getting access to micro credit purely based on the category, and not backed by any
co-lateral
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OPPORTUNITIES
a. Microfinance lends to individuals who have a yearly income of less than Rs. 100,000
in rural areas and less than Rs. 160,000 in semi-urban areas. More than 176 millions
are poor in India. Based on this the opportunities are huge to fill the gap.
b. MFIN sector is showing operational and financial profits. This has been recognized
by hard-nosed private equity investors. Six MFIN members have raised money in the
last six months
THREATS
a. High Competition deteroiting the process of business.
b. MFIN pricing controlled by RBI, is slashing the pricing cap frequently.
c. MFIN customers are highly susceptible to rumors
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AFFILIATIONS
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