2. 2
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 .
3. 3
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.
5. 5
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
POST NO. OF WORKER
Entrepreneur 1
Skilled labour 1
unskilled labour 2
CUSTOMERS OF THE BUSINESS
Customers or target population will be the youth and other common people.
6. 6
SUPPLIERS FOR THE BUSINESS
GPgrass for synthetic grass
Wanze for HDPE nets (side netting)
The rest items can be bought from retailers locally.
8. 8
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.
9. 9
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.
10. 10
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)
12. 12
COST OF INVESTMENT
Sr. No. Particulars amount amount
1 Equipment cost
Artificial 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
13. 13
FINANCIAL DETAILS OF THE PROJECT
Sr. No. PARTICULAR AMOUNT
A BANK FINANCE (70%) 637000
B OWN CONTRIBUTION (30%) 274000
TOTAL COST OF THE PROJECT 911000
FINANCIAL DETAILS OF THE PROJECT
OWN CAPITAL
30%
BANK LOAN
70%
14. 14
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
4000000
Index:-
3500000
3000000
2500000
2000000
1500000
1000000
500000
0
720000 782712 869496 976176 1103940
year 1
A= Revenue from counter sales
B= Revenue from distribution
year 2
year 3
year 4
year 5
1800000 1963008 2185320 2465844
2804808
A B
15. 15
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 15
Total 150000 9.05 11.33 12.84 13.5
Total Revenue for the Project= (Statement A + Statement B)*12
16. 16
EXPENDITURE FOR ONE MONTH
Sr. no. Particular No. Rate Amount
1
Salaries
Entrepreneur
Skilled labour
Unskilled labour
Driver
1
1
2
1
25000
10000
5500
5500
25000
10000
11000
5500
2
Utilities
Electricity
Fuel
Water charges
1600
8400
1000
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
17. 17
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
Packaging
72000
79200 87120 97574 107331
Telephone Expenses
6000
6180 6365 6620 6884
Repairs & Maintenance
6000
6240 6490 6814 7155
Insurance
6000
6000 6000 6540 6540
Sundry Exp
6000
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
18. 18
3000000
2500000
2000000
1500000
1000000
500000
0
EXPENSES
year 1 year 2 year 3 year 4 year 5
expenses
19. 19
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%
28. 28
700000
600000
500000
400000
300000
200000
100000
0
FIXED ASSETS AND DEPRECIATION
year 1 year 2 year 3 year 4 year 5
Fixed Assets
F.A.After depriciation
Total depriciation
29. 29
INCOME STATEMENT
PARTICULAR
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
REVENUE FROM
PROJECT 2520000 2745720 3054816 3442020 3908748
LESS: EXPENCE OF
PROJECT 2034000 2153268 2346213 2538518 2769520
PROFIT 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
30. 30
NET PROFIT
net profit
800000
700000
600000
500000
400000
300000
200000
100000
0
year 1
year 2
year 3
year 4
year 5
net profit
31. 31
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 3272448
CLOSING
BALANCE 376240 651351 1001181 1480298 2116598
32. 32
376240
CASH IN HAND
651351
Cash in hand
1001181
1480298
2116598
2500000
2000000
1500000
1000000
500000
0
year 1 year 2 year 3 year 4 year 5
33. 33
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 236590
Total 1428000 Total 1428000
34. 34
TRADING ACCOUNT FOR THE 2ND YEAR
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
35. 35
TRADING ACCOUNT FOR THE 3RD YEAR
Particulars Amount particulars Amount
To Raw material 1161600 By sales 3054816
To Electricity 20767
To Fuel 121968
To Water charges 12731
1737750
To Gross profit c/d
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
36. 36
TRADING ACCOUNT FOR THE 4TH YEAR
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
37. 37
TRADING ACCOUNT FOR THE 5TH YEAR
Particulars Amount Particulars Amount
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
38. 38
BALANCE SHEET FOR THE PROJECTED PERIOD
Year 1 Year 2 Year 3 Year 4 Year 5
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
39. 39
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
4500000
4000000
3500000
3000000
2500000
2000000
1500000
1000000
500000
0
Year 1 Year 2 Year 3 Year 4 Year 5
Sales
Net Profit
40. 40
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
2500000
2000000
1500000
1000000
0 Current Assets
Fixed Assets
500000
Year 1 Year 2 Year 3 Year 4 Year 5
Fixed Assets
Current Assets
41. 41
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
600000
500000
400000
300000
200000
100000
0
Year 1 Year 2 Year 3 Year 4 Year 5
Debt
Equity
42. 42
PROPRIOTORY RATIO
PARTICULAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
TOTAL ASSETS 1052990 1269706 1566861 1998450 2591855
OWNER’S
274000 274000 274000 274000 274000
FUND
PROPRIOTORY
RATIO
3.84 4.63 5.71 7.29 9.46
3000000
2500000
2000000
1500000
1000000
0 Total assets
Owners fund
500000
Year 1 Year 2 Year 3
Year 4
Year 5
Owners fund
Total assets
43. 43
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 2591855
RETURN ON
TOTAL ASSETS
0.22 0.25 0.26 0.28 0.29
RATIO
3000000
2500000
2000000
1500000
1000000
500000
0
Year 1 year 2 Year 3 Year 4 Year 5
Net Profit
Total Assets
44. 44
FIXED ASSETS TURNOVER RATIO
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
3500000
3000000
2500000
2000000
1500000
1000000
0 Fixed Assets
Net Sales
500000
Year 1 Year 2
Year 3
Year 4
Year 5
Net Sales
Fixed Assets
45. 45
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
4500000
4000000
3500000
3000000
2500000
2000000
1500000
1000000
500000
0
Year 1 Year 2 Year 3 Year 4 Year 5
Net Sales
Current Assets
46. 46
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
4000000
3000000
2000000
0 Total Assets
Net Sales
1000000
Year 1 Year 2
Year 3
Year 4
Year 5
Net Sales
Total Assets
47. 47
DEBT SERVICE COVERAGE RATIO
Net profit after tax + depreciation + interest on loan/interest on loan +installment
1st year: 236590+63550+83264/83264+177864
=383404/261128 = 1.47
2nd year: 325445+57195+69135/69135+177864
=451775/946999 = 1.83
3rd year: 422120+51475+52899/52899+177864
=526494/230763 = 2.28
4th year: 575216+46328+34237/34237+177864
=655781/212101 = 3.09
5th year: 758484+41695+12785/12785+177864
=812964/190649 = 4.26
49. 49
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.
51. 51
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
