(I) PROJECT COST ESTIMATION

Total cost of a capital project may be classified and grouped under the
following categories of assets for the purpose of making detailed and realistic
cost estimates :

- Land (including development charges) :

- Building and other Civil Works :

(factory and residential)

- Roads, Bridges and Culverts :

- Drainage, Sewerages and Water Supply :

- Railway Sidings :

- Plant and Machinery :

- Electric Instkallation :

- Furniture, Fixtures and Office :

Equipments

- Vehicles :

- Trade Marks and Patents :

- Goodwill :

- Preliminary Expneses :

- Other preoperative and incidential :

expenditure during the construction/
installation peirod to be apportioned
to the various assets on pro rata
basis.

(II) PREPARATION OF PROJECTED FINANCIAL STATEMENTS

The projected financial statements prepared for working out financial

returns and carrying out financial appraisal by different agencies, are:

Projected Balance Sheet :

Projected Profit and Loss Account :

Projected Cash Flow Statement :

Projected Fund Flow Statement :

Projected Working Capital Statement :

Projected Income Tax Statement :

Projected Cost Statement :

PROJECTED BALANCE SHEET
(Figures in Rs. at the end of)
Year -> 1 2 3 4 5 .... 10

LIABILITY SIDE

(A) Long-term Liabilities

(i) Share Capital :

- Equity Share Capital :

- Preference Share Capital :

(Foreign Equity to be shown separately)

(ii) Reserve and Surplus :

- Capital Reserve :

- General Reserve :

- Surplus as per Profit and :

Loss Account

(iii) Government Subsidy/Assistance :

(iv) Secured Loan :

- Rupee Loan :

- Foreign Currency Loan :

(v) Debenture issue :

(vi) Public Deposits :

(vii) Other borrowings and credits :

Total (A) :

(B) Current Liabilities and provisoins

(i) Creditors :

(ii) Bank overdraft :

(iii) Provisions for Taxes :

(iv) Dividend payable :

(v) Others :

Total (B) :

Total Liabilities [(A) Plus (B)]

ASSETS SIDE
(A) Fixed Assets $

(i) Land (including development) :

(ii) Building and other civil works :

(iii) Plant and Machinery :

(iv) Infrastructural facilities :

(v) Construction Equipments :

(vi) Vehicles :

(vii) Furniture and Fixtures :

(viii) Other assets :

(ix) Goodwill :
(To the extent not charged off)

(x) Trade marks, patents, design :

(xi) Technology fee :

(To be extent not charged off)

(xii) Prelimianry expenses :

(To be extent no amortised)

(xiii) Others :

Total (A) :

(B) Current Assets

(i) Inventories :

(ii) sundry Debtors (Net of Provisons) :

(iii) Loan and Advancves (Net of Provisoins) :

(iv) Marketable Securities :

(v) Cash and Bank Balance :

(vi) Others :

Total (B) :

Total Assets [(A) Plus (B)] :

$ Note. - In respect of all depreciable assets, book value is shown (i.e., total
cost minus accumulated depreciation)

PROJECTED PROFIT AND LOSS STATEMENT

(Figures in Rs. at the end of)
Years -> 1 2 3 4 5 .... 10
INCOME SIDE

(i) Gross Turnover/Sale :

Less : Excise Duty :

Turnover/Sale (Net of ED) :

(ii) (+) Accretion/(-) Decretion in :

Finished Goods stock

(iii) (+) Accretion/(-) Decretion in :

Work-in-progress stock.

(iv) Other Income :

Total Gross Income (A) :

EXPENDITURE SIDE

(i) Consumption of direct Material :

(ii) Consumption ofIndirect Material :

(iii) Salaries and Wages :

(iv) Power and Fuel :

(v) Depreciation :

(vi) Repair and Maintenance :

(vii) Rent, Rate and Taxes :

(viii) Payment to Collaborators :

(ix) Travellingq :

(x) Insurance :

(xi) Printing and Stationery :

(xii) UPostage, Telephone, etc. :

(xiii) Expenses Charged/Written-off :

(xiv) Interest :

(xv) Selling Expenses :

(xvi) Provisions :

(xvii) Other Miscellaneous Expenses :

Total Expenses (B) :

Profit before tax [(A) Minus (B)] :

 Provision for Tax :

Profit after tax :

PROJECTED CASH FLOW STATEMENT

(Figures in Rs. at the end of)
Years -> 1 2 3 4 5 ..... 10

A. Sources of Cash Inflow

A. Inflow (Receipts)

(i) Share Captial :

(ii) Loan :

(iii) Other Borrowings :

(iv) Inflow against Sale :

(v) Sale of Fixed Assets :

(vi) Other Sources :

Total (A) :

B. Outflow (Payments)

(i) Repayment of loan :

(ii) Capital Expenditure :

(iii) Material Purchase :

(iv) Salaries and Wages :

(v) Other Manufacturing Expenses :

(vi) Administrative Expenses :

(vii) Selling and Distribution Expenses :

(viii) Interest :

(ix) Tax :

(x) Dividend :

(xi) Others :

Total (B) :

Opening balance of Cash in hand/at Bank :

(+) Surplus/(-) Deficit (difference between

A and B above) Closing Balance of cash
Minimum cash balance to be maintained :
Surplus available for :

- Dividend :

- Short-term Investment :

- Pre-mature retirement of debt :

PROJECTED FUND FLOW STATEMENT

(Figures in Rs. at the end of)
Years -> 1 2 3 4 5 ..... 10

A. Sources

(i) Fund from Operation :

Net Profit Before Tax :

Add Back :
--------

Depreciation :
Provisions :
Write offs :

Total Fund from Operation

(ii) Share Capital :

(iii) Loan :

(iv) Other Borrowings :

(v) Sale of Fixed Assets :

(vi) Other Capital and Non-operating :

receipts

(vii) Decrease in Working Capital :

B. Application of Fund

(i) Capital Expenditure :

(ii) Repayment of Loan :

(iii) Repayment of Other Borrowings :

(iv) Payment of Tax :

(v) payment of Dividend :

(vi) Other non-operating payments :

(vii) Increase in Working Capital :

 Total (B) :

PROJECTED WORKING CAPITAL STATEMENT

(Figures in Rs. at the end of)
Years -> 1 2 3 4 5 ... 10

A. Current Assets

* Inventories (Net of Provisoins) :

* Sudnry Debtors (Net of Provisoins) :

* Loan and Advances (Net of Provisoins) :

* Marketable Securities :

* Cash and Bank Balances :

* Others :

Total (A) :

B. Current Liabilities and Provisoins

(i) Current Liabilities :

* Creditors :

* Bank overdraft :

* Others :

(ii) Provisions :

* Provisions for Taxes :

* Dividend Payable :

Total (B) :

Net Working Capital [(A) - (B)] :

Changes (+)/(-) in Working Capital :

PROJECTED INCOME-TAX STATEMENT

(Figures in Rs. at the end of)
Years -> 1 2 3 4 5 ... 10

(A) Profit Before Tax :

(As per Profit and Loss A/c)

(B) Add Back

Expenses not allowed under Income-tax

Act such as:

- Depreciation :
 - Provisions :

- Write-offs :

- Expenses > specified limit :

- Other Expenses :
(as specifically disallowed)

(C) Less Expenses allowed :

- Depreciation as per Income-tax :

Rules

- Charge-offs as per Income-tax :

Rules

- Others as specified :

(D) Less Deductions and exemptions and per

tax laws in respeckt of new project
and others:

Taxable Income (A + B - C - D) :

Tax @ :

Surcharge (If any) @ :

Total Tax :

PROJECTED TOTAL COST STATEMENT

(Figures in Rs. at the end of)
Years -> 1 2 3 4 5 ... 10

1. Factory Cost

Raw Material Consumption :

Labour :

Direct Expenses :

Factory Overheads :

- Depreciation on Plant :

- Indirect Material :

- Toolings :

- Repair & Maintenance :

- Salary of Production & Engg. :

Supervisory & Executive Staff :

 - Power and Fuel :

- Charges for other Utilities :

- Technical Know-how Fee :

Charge-off

- Other Factory Expenses :

TOTAL FACTORY COST

2. Administrative Cost :
(All expenses of Administrative Service
Departments such as Finance, Personnel)

3. Selling and Distribution Cost :

(All expenses of Marketing Department)

4. Interest :

Total cost of production :

(Sum of 1, 2, 3, 4 and 5 above)

LAND ACQUISITION AND LAND DEVELOPMENT PROGRAMME

ESTIMATED
---------

- Area (.... Acres) @ Rs. ...... per acre :

- Cost of levelling and development :

@ Rs. ....... per acre

- Cost of laying roads m2 :

@ Rs. ...... per m2

- Other incidental works :

Total cost of land ___________

___________

IMPORTED MACHINE
(Figures in Rs.)

(A) F.O.B. Cost (Price in Foreign currency :

x prevailing Exchange Rate)

Note. - In case price is not latest,

the same will be adjusted
based on existing inflation
rate and it's likely trend
upto the date of expected
delivery.
+(B) Specified % of F.O.B. Cost for :
insurance and freight (which may vary
from 2% to 8% depending upon : mode of
transport i.e., by Sea or by Air;
distance covered; nature of goods).

(C) C.I.F. COST (A + B ) :

(D) Custom Duty (Specified % of C.I.F. :

Cost as per Custom Tariff)

Note. - The counterveiling duty (CVD),

if any, will be applied to the
sum of C.I.F. and CD (i.e.,
C + D). However, refund of CVD
by government under MODVAT or
other incentives shcemes should
be considered to arrive at the
net figure.

(E) Landed Cost at port (C + D) :

(f) Specified % of C.I.F. cost (For port :

handling charges such as loading and
unloading, waqrehouse charges,
demurrage and wharfage, agents'
commission, Port Trust charges, etc.
- This may vary from 1% to 3% of
C.I.F. Cost).

Note. - This may also be estimated as

a certain % of F.O.B. Cost as
per existing system/practice).

(G) Specified % of C.I.F. Cost (For :

internal insurance, freight, bank
charges, agents' commission, octroi,
local taxes, handling charges and
other incidental charges - This may
vary from 2% to 5% of C.I.F. Cost).

(H) Total Landed Cost at project site :

(E + F + G).

(I) Installation, Erection and Commission :

charges (if any) (% of H as per
technical estimates, experience, or
existing practice).

INDIGENOUS MACHINE

(A) Purchase/Invoice value :

(As per Quotation)

+ (B) Excise duty (As per Excise Duty Tariff) :

(C) Cost Ex-Works (A + B) :

(D) Sale Tax (As per prevailing Sales :
Tax Rate)

(E) Packing and Forwarding (% of C) :

(F) Insurance and Freight (% of C) :

(G) Other incidental charges such as :

material handling, bank charges,
inspection charges, etc. (% of C).

(H) Total cost at Factory/Site (C+D+E+F+G) :

(I) Installation/Erection and :

Commissioning (% of H).

Total estimated cost (H + I) :

JOB COST CONTROL STATEMENT

Name of the Job :

Code Number :

___________________________________________________________________________________
__________________________
Name of the Date of Contract Financial progress
contractor Contract Value ------------------ ->
Budgeted Actual Value Cost Overrun
Reassibs Corrective
Value of of Work Done
for cost measures
Work Done
Overrun
___________________________________________________________________________________
__________________________

___________________________________________________________________________________
__________________________

CAPITAL OUTFLOW REPORT

Name of the product : Period :

Report Code No. : (Rs.)

___________________________________________________________________________________
___________________________
Name of project/ Sanctioned Budget Latest estimate Actual
Actual Pending Reasons
scheme cost outflow --------------- -------------- upto
bills as for
for the for upto for upto
month on date varia-
year mth. mth. mth. mtd. last
year tions

(Actual)

Budget)
___________________________________________________________________________________
___________________________

PHYSICAL PERFORMANCE REPORT (CONTRACT-WISE)

Name of the Project/Work/Job :

Code Number :

________________________________________________________________________________
Name of the Contractor Date of Contract Physical progress
Contract Value -------------------------
Schedule Actual
Completion Completion
________________________________________________________________________________

________________________________________________________________________________
Scheduled Date Actual Date Time Overrun Reasons for Corrective
of Work of Work (Days) Time Overrun Measures
Completed Completed
________________________________________________________________________________

________________________________________________________________________________

Detailed Construction Progress Report

(Assets category-wise)

Project Name :

Period :

________________________________________________________________________________
Description % Age Completion Estimate Cost Actual Expenses Pending
of Assets ________________ upto date Commitments
 Target Actual
________________________________________________________________________________

1. Land and
Development

2. Building

3. Plant and
Machinery

4. Infrastructural
Facilities

5. Others

________________________________________________________________________________

Note. - Give reasons for increase in cost and delays in the planned works.

Capital Work-in-progress Report

Name of the product : Report No. :

Division : Period :

___________________________________________________________________________________
___________________________
Name of M/C Nos. of Budget Issue Amount Liquidation plans
Yearwise Reasons
Items Code Voucher booked --------------------
outstanding for
No. No. till date Target Expected
year 1 year outstanding
date date
2 and so on
___________________________________________________________________________________
___________________________

___________________________________________________________________________________
___________________________

Specimen format of a commissioning/installation report

Description of the machine/equipment :

(i.e. Make, Purpose, Year of manufactuirng)

Power rating : Project Code :

Installation/ Equipment Code :

Erection :

- Date of start : Location :

(Work Centre/Block)
- Date of
completion :

Trail Run/Testing :

(as per the terms of the purchase order)

- Date of start : Sources of Supply : M/s. _________

(indigenous/imported)
- Date of
completion : Purchase Order No. and :
Date.
- Results :
Store Issue Voucher No. :
Remarks on erection : and date.

Guarantee Period :

Condition of the :
machine at the time
of Handing over.

(Signature of Erection Incharge) (Signature of User Department)

List of distribution of copies :-

Report on Capitalisastion of Capital Asset

Name of Product : Period :

Division : (In Rs.)

________________________________________________________________________________
Sl. Description of Location M/c Code Commissioning Capitalised

No. machine Date Cost

________________________________________________________________________________

________________________________________________________________________________
 Asset History Card

(Sheet No. 1)

Description of Equipment

Name : Location : Equipment Code :

Year of Manufacturing : i. Project Code :

Weight : ii.

Size : iii.

- Length :
(Indicate new
location on
transfers).

- Width :

- Height :

Power Rating : Floor Area :

Capacity :

Technical
Specification :

____________________

____________________ Date of commissioning :

____________________

Details of accessories:

____________________ Condition of the machine:

at the time of
____________________ commissioning.

Normal lifke of the : Guarantee Period :

m/c.
Authority for erection :
Description of :
supplier Purchase Order No. and :
Date.

- Name : Store Receipt Voucher :

No.
- Country :
Store Issue Voucher No. :
- Agents' : and Date.
Reference.

Reference of : Authority for Handing :

Drawings and over of the machine.
Documents supplied
by the supplier.

Assets History Card

(Sheet No. 2)

Break up of Capital : Post Installation :

Cost capital

Invoice value : Expenditure :

Erection Cost : - Year 1 :

Incidentals Cost : - Year 2 :

and so on
Total Capitalised
Cost Yearwise
utilisation :

________________________________________________________________________________
Year Available Standard Utilised % Age % Age
Hrs. Hrs. Hrs. Utilisation efficiency
________________________________________________________________________________

Year 1

Year 2

and so on

Yearwise Analysis of Idle Hours :

___________________________________________________________________________________
_________________
Year Maint. No No No No No
Others Total
Problems Work Operator Material Tool Power
___________________________________________________________________________________
_________________

Year 1

Year 2

and so on

Yearwise Analysis of Maintenance Hours :

___________________________________________________________________________________
_________________
Year Design Operator's Wrong Wrong Bad Accident Wear
Others Total
Fault fault location Techno- Maint. and
logy tear
___________________________________________________________________________________
_________________

Year 1

Year 2

and so on

Yearwise Expenditure on Maintenance (Rs.)

Year -> 1 2 3 and so on

- on Break down maintenance

- on Preventive maintenance

Details on Sale/Transfer :

Expected realisable value :

at the end of life.

Other Important Events :

Machine/Equipment Utilistion Report

Part A

Name of the Product : Report No. :

Doivision/Block : Period :

Submitted by : Submitted to :

________________________________________________________________________________
Name of m/c M/c. Location Available hours Utilised hours Standard hours
Code for upto for upto for upto
________________________________________________________________________________

________________________________________________________________________________
% age % age % age % age Reasons for
Utilisation Efficiency Utilisation Efficiency lower
for upto for upto upto the upto the efficiency
last year last year
________________________________________________________________________________

________________________________________________________________________________

NOTES :
Available hours for a period :

(No. of days x No. of hours x No. of shifts) MINUS Provision for unavoidable
hours lost due to preventive maintenance and setting time.

Percentage Utilistion :

(Standard hours x 100) divided by utilised hours.

Percentage Efficiency :

(Standard hours x 100) divided by utilised hours.

Part B

Analysis of Idle Hours

________________________________________________________________________________
Name of m/c M/c Code Location Idle hours Idle hours Idle Hours upto
for the upto period period last year
period
________________________________________________________________________________

________________________________________________________________________________

Reasons for idle hours during the current year

________________________________________________________________________________
Breakdown No No No No No Others Total

Maint. Work Worker Material Tool Power

________________________________________________________________________________

________________________________________________________________________________

Part C

Analysis of Overall Machine Utilisation

Period : Year :

Division/Block :

________________________________________________________________________________
Work Nos. of Nos. of Machines having utilisation
Centre m/cs. Above 90% 75-90% 60-74% 50-59% below 50%
________________________________________________________________________________
________________________________________________________________________________

Capital Asset Transfer Note

Description of Equipment Code : Location Code :

Capital Asset
______________ ________________ _______________

Old : Old :
New : New :

Date of Requisition :
Date of Transfer :
Asset History Card No. :

Issued By Received By Approved By

_________ ___________ ___________

Sign./Date Sign./Date Sign./Date

Distribution of copy to :-

PROJECT COMPLETION REPORT

1. Project background, its objectives and its relevance for the

organisation.

2. A brief on justification of location selected.

3. Description about the preparation and approval of feasibility report

such as : date of start, date of completion, agencies involved, date of
submission to the competent authority for approval, date of approval, a
brief about experience gained during report preparation stage, and
management observations/recommendations on the project approval.

4. Particulars of collaboration/cfonsultancy agreement : Name of the

agency/company; period of agreement; date of approval of agreement;
scope of the agreement; brief on technology absorption; and payments to
the collaborators (with breakup into lump sum, consultancy charges,
royalty, etc.).

5. Land Acquisition and Land Development :

As per Actual Delays

Project
Report
_______ ______ ______
 Land Acquisition :

- Date of Application

- Date of approval

- Date of acquisition

- Area of land

Land Development :

- Date of stasrt

- Date of completion

6. Financing of Project :

- Agencies involved and

their percentage.

- In case of external
agencies :

- date of application

- date of approval

7. Employment

Nos. as per Nos. as per Difference

Project Actuals
Report
___________ ___________ __________

Year (________)

Technical :

- Executives

- Supervisors

- Operators :

skilled

unskilled

- Casual Workers

Non-Technical :

- Executives

- Supervisors

- Clerks
 - Unskilled Staff

- Casual Staff

Year (_______ and so on)

8. Cost of Project (Rs.)

Original Revised Actual Diff. Diff.

Estimate Estimate
A B C A - C B - C
________ ________ ______ _____ _____

- Land and Building

- Plant and Machinery

- Infrastructural
facilities.

- Other Assets

- Erection and
Commissioning

- Working Capital

- Contingency

Total Project outlay

9. Details of Machines and

Equipments :

In respect of Machines
and Equipments
purchased :

- Description of the
Machine.

- Budget code No.

- Whether imported/
indigenous.

- Location

- Year of installation:

- as per original
project estimate.

- as per revised
project estimate.

- as per actual
booking.
 - reasons for time
overrun ---

- cost break up :

(in foreign exchange

and in rupees)

- as originally
sanctioned

- as per revised
estimate

- as per actual
capitalised cost
- Reasons for cost
variance:
(State financial implications of : change in scope, change in duties
and taxes, inflation, over/under estimation, fund shortage, change in
foreign exchange rate, others)

10. Cost break-up for Infrastructural Facilities and Other Assets

(In Rs.)

Original Revised Actual Diff. Diff.

Estimate Estimate
A B C A - C B - C
________ ________ ______ _____ _____

Infrastructural
Facilities :

- Roads

- Bridges and culverts

- Railway Sidings

- Power supply

- Water supply

- Gas supply

- Effluent disposal

- Drainage

- Sewerage

- Total cost

Other Assets

- Construction
 equuipments

- Vehicles

- Furniture and
Fixtures

- Intangible
Assets :-

- Goodwill

- Trade marks,
patents,
design

- Others

- Preliminary Expenses
(not adjusted yet)

Total Cost of Other Assets

11. Details of Building

Original Revised Actual Diff. Diff.

Estimate Estimate
A B C A - C B - C
________ ________ ______ _____ _____

- Production Blocks

- Administrative Blocks

- Engineering Blocks

- Laboratories

- Stores

- Packing and Shipping

Blocks

- Welfare

(Canteen, Creches,
Hospitals, Schools
etc.)

- Other Plant Services

- Residential
Construction

12. Working Capital

Original Revised Actual Diff. Diff.

 Estimate Estimate
A B C A - C B - C
________ ________ ______ _____ _____

External Financing :

Internal Financing :

Value at the commence-

ment of Production :

(a) Current
Assets _____________

(b) Current
Liabilities_________

13. Reasons for Variations _________

(Item-wise) __________

14. Order Book Position

Original Revised Actual Diff. Diff.

Estimate Estimate
A B C A - C B - C
________ ________ ______ _____ _____

- Indigenous

- Export

15. Number of Working

Hours/Shifts

Expected Actual
-------- ------

16. Production

Expected Actual
-------- ------

- Date of trial run in respect of

each machine

- Date of commercial production

17. Project time Schedule

(This may be elaborated through Multiple Activity Charts showing

expected and actual start and completion time for each activity in the
project).

18. Capital Structure

Original Revised Actual Diff. Diff.

 Estimate Estimate
A B C A - C B - C
________ ________ ______ _____ _____

- Equity Capital :

- Public Issue

- Promoters'
contribution
(Foreign Equity to
be shown separately)

- Reserve and Surplus

- Cash subsidy

- Long-term borrowings

- Working Capital

Total Fund Employed

19. Financial Results

As per original As per latest

Projections Projections
--------------- -------------

- Return on Investment

- Internal Rate of Return

- Pay Back Period

- Break Even Point

- Value Added to Output Ratio

- Capital Output Ratio

Change in financial assumptions in respect of :

- Economic life of the project ______ years

- Sale Price per unit Rs. ___________

- Cost Norms ________

Rates and Taxes, etc. ________

20. Description of Product Mix

21. Product-wise Capacity Utilisation : Describe any change in the latest

projections against original projections in respect of :

- Licensed Capacity
 - Installed Capacity

- Expected Utilisation

22. Other Details :

Original Revised Actual Diff. Diff.

Estimate Estimate
A B C A - C B - C
________ ________ ______ _____ _____

- Expenditure on
Training

- Expenditure on
Social Overhead

- Expenditure on
Pollution Control

- Expenditure in
Foreign Currency
(In domestic
Currency)

- Capital Goods

- Revenue
Expenditure

23. A detailed description of project highlights

- Milestones achieved

- Quality of work executed

- Major failures

- New Inventions

- Other experience gained

24. Suggestions for improvements in the Methods, Systems, Procedures, etc.

for effective managerial funtioning.