PROJECT REPORT

OF

BESAN & DAL MILL

M/S. JAGDAMBA AGRO & FOOD PRODUCTS

-: Prepared by:-

SHREYANS T. SHAH & CO.

Chartered Accountants

127/2, Rockel Lane,

Next to Dr. Kanti Shah Hospital,

Vakharbhag, Sangli

Tel: (0233) 2623625, 2622536

HIGHLIGHTS OF THE PROJECT

1. Name of the unit

: JAGDAMBA AGRO & FOOD PRODUCTS

2. Address of unit

: Proposed Plot in Tembhurni MIDC.

3. Constitution

: Proprietorship : Sou. Vijaymala Govardhan Chavarepatil

4. Nature of Activity

: Dal & Besan Mill.

5. Cost of Project : 344.00 Lacs

6. Means of Finance : Capital 86.00 Lacs

Bank Loan 258.00 Lacs

Total Rs. 344.00 Lacs

PROJECT REPORT

OF

M/S. JAGDAMBA AGRO & FOOD PRODUCTS

Introduction:

The proprietor of this company, Sou. Vijaymala Govardhan Chavarepatil, has decided

to start Dal & Besan Mill. The project basically consists of the grinding and milling activities.

Dal & Besan are used in regular food preparation in our day to day usage. Thus, the demand

for the same is ever increasing and marketing is very easy for this project.

Introduction of the Proprietor:

Sou. Vijaymala Govardhan Chavarepatil is an educated woman entrepreneur and

resident of Karmala town.

Project:

Cost of the project shall be Rs. 344 Lacs (details given on later pages), which shall be

funded as Own Capital Rs. 199.37 Lacs (Capital and margin for working capital), and Bank

Finance Rs. 258 Lacs as a Term Loan and Rs. 340.11 Lacs as Cash Credit.

Land & its selection:

The project is proposed in MIDC Tembhurni. A plot up to 20000 sq. mtrs. shall be

required for this project considering immediate use and future expansions to be taken.

Building:

It is proposed to construct building in following form in the 1 st phase i.e.

immediately: -

1. Drying Platform : 1000 Sq. Mtrs.

2. Factory Building : 1000 Sq. Mtrs.

3. Godown Shed : 2000 Sq. Mtrs.

The estimated cost of the above said building is around Rs. 140.00 Lacs, which shall

be constructed.

Machinery:

Various machineries required have been enquired for and the quotation of the same

are attached herewith. These machines include following items:

1. Screening Machines

2. Polishing machines

3. Milling Machines

4. Hoppers

5. Packing Machines

6. Various Motors

Water:

Water shall be used for both industrial and domestic purposes. Total water

requirement per day shall be around 3000 Liters. Water is made amply available from the

Industrial Area. Thus there will be problem regarding water availability.

Marketability:

The products viz. Besan and Dal are food items which have local market with huge

demand. As being the items used in day to day usage, besan and dal have very good

demand and it shall be never ending and ever increasing.

Power Saving:

Maximum care should be taken while selecting the machinery and other electrical

equipments so as to ensure minimum power consumption.

Project cost Details:

Rs. In Lacs

A. Land and Development 15.00

B. Building 140.00

C. Plant & Machinery 175.00

D. Electrification & Installation 10.00

E. Misc. & Other Assets 04.00

Total 344.00

Means of Finance:

This project shall be financed in following manner:

Rs. In Lacs

A. Capital contribution 86.00

B. Bank Term Loan 258.00

Total 344.00

Implementation Schedule:

This project will be implemented in following schedule:

Sr. No. Activity Period

1. Acquisition and development of land 2 months

2. Civil work and building construction 10 months

3. Procurement of machinery and equipment 2-3 months

4. Arrangement for power supply 1 month

5. Water supply Arrangements 2 weeks

6. Erection and installation of machinery 1 month

7. Initial Procurement and commissioning 1 month

8. Trial Runs 2 weeks

9. Commercial Production 1 week

As the above said activities shall start after allotment of plot, and shall be completed within

three years from allotment.

POLLUTION CONTROL MEASURES:

No any chemical process or any water process is involved in the unit. In this unit water is

used for only drinking, or other domestic purposes. This domestic water is used for gardening.

Financial Analysis:

Attached separately.

* * * * *

COST OF PROJECT :Rs.In Lacs

Land & Site Development 15.00

Building 140.00 - Drying Platform : 1000 Sq. Mtrs. @ Rs. 1000 / Sq. Mtrs. = 10.00 - Factory Building : 1000 Sq. Mtrs. @ Rs. 5000 / Sq. Mtrs. = 50.00 - Godown Shed : 2000 Sq. Mtrs. @ Rs. 4000 / Sq. Mtrs. = 80.00

Machinery 175.00

Elect. Installation & Other Assets 10.00

Per-op. Expenses 4.00

344.00

MEANS OF FINANCE :

Promoters Contribution 86.00

Bank Term Loan 258.00

344.00

REQUIREMENT OF WORKING CAPITAL

Stock of Raw Material 15.00 Days 112.50

Stock of work in process 3.00 Days 22.50

Stock of Finished Goods 7.00 Days 55.01

Receivables 30.00 Days 263.48

Total Working Capital 453.48

Bank Facility (Cash Credit) @ 75 % 340.11 Margin @ 25 % 113.37 453.48

DEPRECIATION :

Building 10% 14.00

Machinery 20% 35.00

49.00

INTEREST : Rs.In Lacs

Bank T. L. 13.00% 258.00 Lacs 33.54

Bank C. C. 13.00% 340.11 Lacs 44.21

77.75

POWER :

Load Connection : 150 HP

Unit Consumption : 2012 Units Day

Yearly Consumption : 603450 Units

Yearly Cost : @ Rs. 5.20 31.38 Rs. Lacs

CAPACITY :

Production Capacity : 20 MT per day

No. of Working Day : 300 Days

No. of Shift : Single or Two

Operating Level 60%= 3600 MT per year

Wastage 20%

SalesMt Rate / MT (Rs. In Lacs)

Besan 3600 70000 2520

Scrap 765.00 15000 114.75

2634.75

Purchases

Raw Material Mt Rate / MT (Rs. In Lacs)

Harbhara 4500.00 50000.00 2250

Note : It is assumed that the recovery of Besan & Scrap is @ 80 % of input

LABOUR No. of Person Salary Months Rs.In Lacs

Supervisors / Staff 4 7500.00 12 3.60

Skilled 10 5000.00 12 6.00

Unskilled 20 3500.00 12 8.40

18.00

MISC. EXP. :- Rs.In Lacs

Packing Material @ 1 % of Sales 26.35

Freight & Hamali @ Rs. 15000 p.m. 1.80

Printing & Stat. @ Rs. 2000 p.m. 0.24

Advertisement @ Rs. 5000 p.m. 0.60

Reparing & Maint. @ Rs. 7500 p.m. 0.90

Travelling @ Rs. 5000 p.m. 0.60

Factory Exp. @ Rs. 10000 p.m. 1.20

31.69

PROFITABILITY STATEMENTS : Rs.In Lacs

Sales 2634.75

Less :- Raw Materials 2250.00

Labour 18.00

Power 31.38

Mfg. Exps. @ 1% 26.35

Misc. Exp. (as per list) 31.69

2357.41 2357.41

277.34Less : Interest on T. L. 33.54

Interest on C. C. 44.21

Deperciation 49.00

Selling & Admin Exps. @ 2% 52.70

179.45 179.45

Net Profit Bef. Tax 97.89

Less :- Income Tax @ 30% 29.37

Net Profit After I. Tax Prov. 68.52

Add :- Depreciation 49.00

CASH ACCRUALS 117.52

Loan Repayment 51.60

D.S.C.R. 1.77

Rs.In Lacs

PARTICUALRS I II III IV VUtilization % 60% 65% 70% 75% 80%

Sales 2634.75 2854.31 3073.88 3293.44 3513.00

Less - Raw Material 2250.00 2437.50 2625.00 2812.50 3000.00

- Labour 18.00 20.48 23.15 26.05 29.17

- Power 31.38 33.99 36.61 39.22 41.84

- Mfg. Exps. @ 1 % 26.35 28.54 30.74 32.93 35.13

- Misc. Exp. 31.69 34.33 36.97 40.61 44.32

2357.41 2554.84 2752.47 2951.31 3150.46

Gross Profit 277.34 299.47 321.41 342.12 362.54

Less - Interest on T.L. 33.54 26.83 20.12 13.42 6.71

- Interest on CC 44.21 44.21 44.21 44.21 44.21

- Selling & Admin Exps. 52.70 57.09 61.48 65.87 70.26

- Depreciation 49.00 40.60 33.74 28.13 23.52

179.45 168.73 159.56 151.63 144.70

Net Profit Before I. Tax 97.89 130.74 161.85 190.50 217.84

Less- I. Tax Provision 29.37 39.22 48.55 57.15 65.35

Net Profit After I. Tax prov. 68.52 91.52 113.29 133.35 152.49

Add- Depreciation 49.00 40.60 33.74 28.13 23.52

Cash Accruals 117.52 132.12 147.03 161.47 176.01

Loan Repayment 51.60 51.60 51.60 51.60 51.60

D.S.C.R. 1.77 2.03 2.33 2.69 3.13

Average D. S. C. R.

Note:DSCR Tends to higher side due to very high Turnover.

PROFITABLITY STATEMENT (FIVE EARS)

2.39

Rs.In Lacs

I II III IV V

Sources of Funds

Cash Accruals 117.52 132.12 147.03 161.47 176.01

Increas in Capital 199.37 0.00 0.00 0.00 0.00

Increase in Term Loan 258.00 0.00 0.00 0.00 0.00

Increase in Bank Borrowing 340.11 0.00 0.00 0.00 0.00

Increase in U/S Loan 0.00 0.00 0.00 0.00 0.00

Others - 0.00 0.00 0.00 0.00 0.00 Total Application (A) 915.00 132.12 147.03 161.47 176.01

Dispossion of Funds

Pre-op Expenses 0.00 0.00 0.00 0.00 0.00

Increase in Capital Expenditure 344.00 0.00 0.00 0.00 250.00

Decrease in Term Loan 51.60 51.60 51.60 51.60 51.60

Decrease in Cash Credit 0.00 0.00 0.00 0.00 0.00

Interest 0.00 0.00 0.00 0.00 0.00

Taxation 0.00 0.00 0.00 0.00 0.00

Increase in Working Capital 453.48 45.00 45.00 45.00 45.00

Others (specify) 0.00 0.00 0.00 0.00 0.00

Total Dispossion (B) 849.08 96.60 96.60 96.60 346.60

Opening Balance 0.00 65.92 101.44 151.87 216.75

Net Surplus (A-B) 65.92 35.52 50.43 64.87 -170.59

Closing Balance 65.92 101.44 151.87 216.75 46.16

CASH FLOW & FUND FLOW (FIVE EARS)

Rs.In Lacs

I II III IV V

Liabilities

Capital 199.37 199.37 199.37 199.37 199.37

Reserve & Surplus 68.52 160.04 273.33 406.68 559.17

Term Loans 206.40 154.80 103.20 51.60 0.00

Bank Borrowing for W.C. 340.11 340.11 340.11 340.11 340.11

Other Liabilities (specify) 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00

Total 814.40 854.32 916.01 997.76 1098.65

Assets :

Gross Block 344.00 344.00 344.00 344.00 594.00

Depreciation 49.00 89.60 123.34 151.47 174.99

Net Block 295.00 254.40 220.66 192.53 419.01

Pre-operative Exps 0.00 0.00 0.00 0.00 0.00

Current Assets 453.48 498.48 543.48 588.48 633.48 Cash & Bank balance 65.92 101.44 151.87 216.75 46.16

814.40 854.32 916.01 997.76 1098.65

0.00 0.00 0.00 0.00 0.00

PROJECTED BALANCE-SHEET (FIVE YEARS)

INTEREST SCHEDULE :Rs.In Lacs

PARTICULARS Bank T. L. INTEREST Bank C. C. INTEREST13% 13%

BALANCE 258.00 340.11 [-] Ist Yr. Installment 51.60 33.54 0.00 44.21BALANCE 206.40 340.11

[-] IIst Yr. Installment 51.60 26.83 0.00 44.21BALANCE 154.80 340.11

[-] IIIrd Yr. Installment 51.60 20.12 0.00 44.21BALANCE 103.20 340.11

[-] IVth Yr. Installment 51.60 13.42 0.00 44.21BALANCE 51.60 340.11

[-] Vth Yr. Installment 51.60 6.71 0.00 44.21BALANCE 0.00 340.11

DEPRECIATION SCHEDULE Rs.In Lacs

PATICULARS Building Machinery Total Depr.10% 20%

OP.BALANCE 140.00 175.00

[-] Ist YR. Depr. 14.00 35.00 49.00W.D.V. 126.00 140.00

[-] IInd Yr. Depr. 12.60 28.00 40.60113.40 112.00

[-] IIIrd YR. Depr. 11.34 22.40 33.74W.D.V. 102.06 89.60

[-] IVnd Yr. Depr. 10.21 17.92 28.13WDV 91.85 71.68

[-] Vnd Yr. Depr. 9.19 14.34 23.52 WDV 82.67 57.34