Detailed Project Report on Tutti Frutti processing

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RAJASTHAN AGRICULTURAL COMPETITIVENESS PROJECT Detailed Project Report on Tutti- Frutti processing Prepared by: AGRI BUSINESS PROMOTION FACILITY

Transcript of Detailed Project Report on Tutti Frutti processing

Page 1: Detailed Project Report on Tutti Frutti processing

RAJASTHAN AGRICULTURAL

COMPETITIVENESS PROJECT

Detailed Project Report on Tutti-

Frutti processing

Prepared by:

AGRI BUSINESS PROMOTION FACILITY

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Table of Contents

List of Figures 2

List of Table 3

Chapter 1-Introduction of Papaya and Tutti-Frutti 4

Chapter 2- Tutti-frutti Processing 9

Chapter 3-Technical Process Flow 13

Chapter 4: Technology Options Available 16

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Figure 1 Major papaya producing states in India (2017-18) ............................................................ 6 Figure 2: Papaya production in India............................................................................................... 7 Figure 3 Major papaya producing places in Rajasthan ................................................................... 8 Figure 4 Ingredients for Tutti Frutti .................................................................................................. 9 Figure 5 Supply Chain of Tutti-frutti............................................................................................... 11 Figure 6 Process flow chart of tutti frutti processing ...................................................................... 14 Figure 7 Process Flow with plant and machinery .......................................................................... 15

List of Figures

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Table 1:Major papaya producing countries ..................................................................................... 5 Table 2 Major papaya producing states in India (2017-18) ............................................................. 6 Table 3: Assumptions for Operating Capacity utilization ............................................................... 16 Table 4: Project Cost Summary .................................................................................................... 16 Table 5: Means of Finance Summary ........................................................................................... 17 Table 6: Civil Cost Summary ......................................................................................................... 17 Table 7: Utilities and other project components ............................................................................ 17 Table 8: Plant and Machinery ....................................................................................................... 18 Table 9 Assumptions sheet ........................................................................................................... 19 Table 10 Profit and Loss statement .............................................................................................. 20 Table 11 Balance Sheet ................................................................................................................ 21

List of Table

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Tutti Frutti is referred as candied raw papaya as it made from the extraction of

raw papaya. These small-sized cubical titbits have a fruity and sweet taste and

come in different colours such as red yellow and green.

Major uses of tutti-frutti as a candy are mentioned below:

The primary ingredient includes raw papaya which is then mixed with sugar and

artificial colouring to form these tiny colourful cubicles. Papaya originated in

tropical America while Portuguese introduced papaya in India from Malacca

during 1611. At present it is cultivated throughout the world in tropical and sub-

tropical climate. It is the second most nutritive fruit as it has a high nutritional

value. It is a good source of folate, vitamin A, magnesium, copper, pantothenic

acid and fibre. In terms of calories it only gives about 39 calories per 100 grams.

Production of Tutti-frutti is directly linked to the availability and cultivation of

papaya. Being a tropical crop, papaya needs a high level of humidity and

temperature and relatively sensitive to frost and heavy rains. As far as the soil is

concerned, it can grow in a variety of soils, preferably a rich and sandy loam.

The economic life of papaya plant is only 3 to 4 years. The yield varies widely

according to variety, soil, climate and management of the orchard. The yield of

75-100 tonnes /ha. is obtained in a season from a papaya orchard depending

on spacing and cultural practices.

Bakery products such as milk-breads, cookies and buns

Cold desserts as topping for ice-creams and sundaes

Sweet pans for flavouring and adding texture

Various dishes such as idli, pizza, dosa etc.

Chapter 1-Introduction of Papaya and

Tutti-Frutti

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1.1 Global scenario – Papaya

Papayas are the fourth most traded tropical fruit following bananas, mangoes,

and pineapples. Approximately 75 percent of the world’s papayas are produced

in only ten countries. India leads the world in papaya production followed by

Brazil, Indonesia, Nigeria, and Mexico.

According to the Tridge intelligence report, total papaya production in the world

is 1,30,05,000 MT out of which India is the largest producer of papaya in year

2016-17, with an annual production of 57,00,000 MT followed by Brazil with less

than half of the total papaya produced by India. The table below shows the

major papaya producing countries:

Table 1:Major papaya producing countries

# Country Production ('000 MT ) Production

share in %

1 India 5900 43.7%

2 Brazil 1420 10.9%

3 Mexico 951.92 7.3%

4 Indonesia 904.28 6.9%

5 Dominican Republic 863.20 6.6%

6 Nigeria 836.70 6.4%

7 Democratic republic of Congo 215.26 1.6%

8 Cuba 212.58 1.6%

Source: https://www.tridge.com/intelligences/papaya/production

1.2 Indian Scenario – Papaya

India is the largest producer of papaya in the world and has exported 9,990 MT

of papaya in the Year 2017-2018. It produces a variety of papaya such as Pusa

Delicious, Pusa Majesty, Pusa Dwarf, Pusa Giant, Co. 1 to Co. 6, Surya, Pusa

Nanha, etc.

The area under papaya cultivation in India and its production grew at a

compound annual growth rate (CAGR) of 6.2% and 7.1%, respectively, during

last five decades. Furthermore, the yield of papaya has also increased at CAGR

of 6.8% in the last two decades. It is estimated that the production of papaya

will hit 10 million MT by 2030.

The major states of India that produce Papayas are highlighted in the diagram

given below:

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Figure 1 Major papaya producing states in India (2017-18)

Table 2 Major papaya producing states in India (2017-18)

# Country Production('000 MT ) Production

share in %

1 Andhra Pradesh 1687.82 28.18%

2 Gujarat 1256.51 21%

3 Karnataka 593.69 9.91%

4 Madhya Pradesh 421.55 7.03%

5 Maharashtra 408.30 6.81%

Source: Agricoop National Horticulture statistic 2018

From the table above, it can be seen that the top 5 papaya producing states

account for 73% of the total papaya in production India as of 2017-18. Andhra

Pradesh is the largest producer of papaya, contributing 28% to the production of

papaya in India.

Highlights Major papaya

producing states in India

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Figure 2: Papaya production in India

Source: Agricoop National Horticulture statistic 2018

The diagram showcases that production of papaya has slightly increased from

56,67,060 MT in 2015-16 to 59,88,830 in 2017-18. While the area of production

has also increased form 1,32,000 Ha in 2015-16 to 1,38,000 ha in 2017-18.

1.3 Rajasthan Scenario –Papaya

Rajasthan, the largest state of India (3,42,239 sq. km.) situated in the north-

western part of the Indian Union is largely an arid state. A significant portion of

the economy of Rajasthan is agrarian.

It is a key state in terms of production of horticultural produce particularly

spices, medicines and aromatic plants. The state has produced 7,36,350 MT of

fruits in the year 2017-18. The state has diverse profile for fruits production

which includes lemon, orange, kinnow, pomegranate etc.

Production of papaya stands at 4370 MT and production area of 510 ha as of

2017-18. The produce is less than 1% of the total production of papaya in the

country. The lack of papaya production indicates unfavourable soil and climatic

conditions leading to a minimal produce. The productivity of papaya in the state

stand at 8.57 MT/Ha which is amongst the lowest in comparison with other

states.

128.00

130.00

132.00

134.00

136.00

138.00

140.00

5,500.00

5,600.00

5,700.00

5,800.00

5,900.00

6,000.00

6,100.00

2014-15 2015-16 2016-17

Pro

duction in ' 0

00 H

a

Pro

duction in '000 M

T

Papaya Production in India

Production Area

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Figure 3 Major papaya producing places in Rajasthan

The map above highlights the major places where papaya cultivation takes

place. Although production of papaya in the state is minimal, it is still growing

year on year with expansion in the production area as well.

Although RACP clusters particularly does not have significant Papaya

production but based on recent Horticulture plan area under Papaya will

increase. Currently the Papaya producing districts having RACP clusters in

Rajasthan are Jaipur and Chittorgarh.

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2.1. Introduction to Tutti Frutti

Tutti frutti is a jelly like cubical which is made by impregnating fruits with flavour

& taste along with attractive colour. It is useful in the preparation of other food

items such as toppings for bread, ice cream, fruit bar, pulao, cakes, pastries,

custard shrikhand & fruit salads etc. It provides attractiveness as well as

nutritive value to many food items.

Figure 4 Ingredients for Tutti Frutti

The flowchart above shows a list of the ingredients that required to make tutti-

frutti. The process of making tutti-frutti is rather simple and can be even made at

home without the use of manufacturing equipment.

There are two main types of tutti-frutti: Western (European/American) version

and the Indian version. Western tutti frutti refers to a fruit mixture that is

preserved in brandy and prepared over several months. Indian tutti frutti is a

type of candied papaya commonly used in fruit cakes and various Indian

recipes.

Preservatives

Water

Red,yellow and green food coloring

Vanilla extract

Granulated sugar

Raw papaya

Chapter 2- Tutti-frutti Processing

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With emergence western food taste preferences, this has led to increase in the

demand bakery items, cold desserts etc. In fact, certain brands such as red

mango and coco berry have developed their entire market on these desserts i.e.

frozen yogurts. it is important to note that tutti-frutti is a complimentary item to

bakery and cold desserts. Therefore, an increase in the sales for these items

would also lead to increase in sales for tutti-frutti.

Other value added products from Papaya:

2.2. Global and Indian scenario

Tutti-frutti is a niche flavouring item that is consumed majorly all around the

world. However, since it is just a flavouring add on, the quantity of production

and consumption will be relatively less compared to other processed agricultural

crops. The countries with largest production of tutti-frutti are India, Brazil

followed by Nigeria, Indonesia and Mexico. It is important to note that these

countries are one top papaya producing states too.

The primary problem with manufacturing Tutti-frutti is the availability and

perishability of raw material. It requires unripe papayas but at the same time

they should be fully grown in size and it cannot have stored for more than 2-3

days. Therefore, the production of tutti-frutti is closer to where the papayas are

produced.

The following are the leading producers on Tutti Frutti India:

Nakodas Group

Jadli foods

Aditi food Pvt. Ltd

Papain Leather

Candy Jam

Jelly

Sauce

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Ecotech Agri & Dairy care

Various stages of supply chain in the process of Tutti-frutti, from the

manufacturers to the consumers is explained below in the given diagram:

Figure 5 Supply Chain of Tutti-frutti

2.3. Rajasthan Scenario

As of now, the production of papaya is very low in the state of Rajasthan. This

highlights limited opportunity for the processing of the Tutti-frutti as it usually

made near to the production centres. However, considering the investment plan

of state in the papaya, this can be a good opportunity for the early movers in

adopting tutti frutti processing technology as bakery sector in the state obtain

tutti frutti from other states which increases their cost of production.

Manufacturer

Distributors

Wholesalers

End consumers Retailers

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3.1 Process of Manufacturing

There are various steps involved in the manufacturing of Tutti-frutti:

1. The first step is to wash unripe papayas with clean water and then

remove their peel with a help of peeling machine.

2. Cut the papaya lengthwise and remove seeds and fibre.

3. Blanch the pieces in boiling water for 8-10 minutes and then cool them.

4. Prepare a sugar syrup with 30% sugar solution and 3% citric acid.

5. Then add the pieces of papaya in boiling syrup and keep for about 10

minutes.

6. Add colouring and other flavours to the syrup and keep these pieces

soaked for about 8-10 hours.

7. Further cut the dried pieces into smaller sizes and the put them in a

dryer a temperature of around 60° C for about 10 minutes.

8. Further cool the pieces and then pack with moisture-proof packaging

materials.

3.2 Tutti-frutti Manufacturing Plant & Machinery

A manufacture can choose to either set up a semi-automated or a fully

automatic plant. The plant & machinery varies depending on investment,

capacity and production output. The following is a list basic machinery

requirement in order to set up the plant:

Papaya peeling machine

Papaya slicing and cubing machine of SS with double rollers and SS

hopper

Diesel Furnace (Bhatti) with burners, fire bricks, oil cock, blower etc.

Stainless steel working tools

Electrically-operated drier with aluminium trays

Chapter 3-Technical Process

Flow

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Weighing scale

Heat-sealing Machine

Laboratory equipment

Manufacturing quality specification:

The moisture content of the product at the time of packing should not

exceed 6%.

Mould and fungal growth should be absent. It should also test negative

for coliforms, salmonella, streptococci.

The manufacturer must obtain a ‘Fruit Products Order’ license to

manufacture the product.

3.3 Process Flow Chart for the Semi-Automatic Plant

Figure 6 Process flow chart of tutti frutti processing

Papaya Washing Peeling and

cutting of unripe papaya

Seasoning Soaking in

sugar syrup Blanching and

pricking

Cutting cleaning and

drying Cooling & Packing

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3.4 Process Flow Chart for Tutti-Frutti

Figure 7 Process Flow with plant and machinery

Tutti-frutti

Papaya

Band Sealer

Dicing & Cubing Machine Papaya Peeler

Steam Jacketed Kettle

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We propose a medium end technology option for tutti frutti. The medium end

option includes a Semi-Automatic processing plant of 2 MT per day input

capacity.

4.1. Business Assumption

The business plan has assumed that the business model operates under

captive mode that involves direct selling of final product.

The assumptions for the model are as follows:

Table 3: Assumptions for Operating Capacity utilization

Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Operating Capacity 0 70% 70% 80% 90% 90% 90% 90% 90% 90%

4.1.1. Project Cost

The total cost of the project is estimated at Rs.41.31 Lakh, out of which civil

cost constitutes Rs 12.60 Lakhs, plant and machinery constitutes Rs.16.10

Lakhs, utilities & support of Rs. 5.95 Lakhs, Interest during construction of Rs.

1.66 Lakhs and Preliminary & pre-operating expenses of Rs. 5.00 Lakhs. The

detailed description of each component of project cost is depicted in the tables

below.

Table 4: Project Cost Summary

Capex Components Amount (Rs. Lakh)

Civil Cost 12.60

Plant & Machinery 16.10

Utility & Support 5.95

Preliminary & Pre-operative expenses 5.00

IDC 1.66

Total Capex 41.31

Note: We have not considered the land cost in this business model

Chapter 4: Technology Options

Available

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4.1.2 Proposed Means of Finance

The promoter’s equity in the project is Rs 21.31 Lakhs which is 52% of the total

project cost. The term loan considered for the project is estimated at Rs. 20

Lakhs which is 48% of the total project cost.

Table 5: Means of Finance Summary

Means of Finance (INR Lacs) Amount (Rs. Lakh)

Total Project Cost 41.31

Funding

Equity (Promoters Cost) 21.31

Debt 20.00

Total Funding Required 41.31

Note: We have not considered grant in aid being offered by National

Horticulture Board or any other government entity/ institutions, which may have

an impact on the overall profitability of the project in a positive way.

4.1.3 Civil Work

The total cost of civil work has been estimated to be Rs 12.60 lakhs. Cost of

civil work comprises of the built-up cost of core plant and machinery area, raw

material storage & finished goods storage.

Table 6: Civil Cost Summary

Civil Cost Total Area

Required

(SQM)

Total Civil Cost

(Rs. Lakh)

Core plant and machinery area, raw material

storage & finished goods storage 150 12.60

4.1.4 Utilities and other project components

The total cost of Utilities has been estimated to be Rs 5.95 lakhs, which

includes 2 water storage tanks of 10,000 LT, generator set of 30 KVA, weighing

scale, and electrical wires & panel.

Table 7: Utilities and other project components

Utility & Support Infrastructure Capacity

(No. of Units)

Overall Cost

(INR Lacs)

Water Storage 2x10000 LT 1.785

Generator 30 KVA 1.785

Weighing Scale 4 1.19

Transformer / Electrical wires and Panel 1.19

Total Utility & Support

5.95

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4.1.5. Plant and Machinery

The total cost of plant and machinery has been arrived on the basis of quotation

received from various suppliers of equipment and machinery. The total cost of

P&M is considered as Rs. 16.10 Lakhs (including IGST). The following table

captures the components under Plant & Machinery.

Table 8: Plant and Machinery

Plant & Machinery Amount (Rs. Lakh)

Plant & Machinery

Papaya Peeler 1.50

Vegetable Dicing & Cubing Machine 3.21

Steam Jacketed Kettle 2.14

Steam Boiler 5.36

Band Sealer 0.32

Soaking Trays 3.57

Total Cost of Plant & Machinery 16.10

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4.2 Financial model

4.2.1. Assumptions

Table 9 Assumptions sheet

Revenue Assumptions Units Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Installed Capacity

Hours in a Day 8

Number of Shifts per day number 1 1 1 1 1 1 1 1 1

Installed Capacity -Tonnes per hour tonnes/hour 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25

Installed Capacity -Tonnes per day tonnes/day 2 2 2 2 2 2 2 2 2 2

Actual Available Capacity tonnes/day 2 2 2 2 2 2 2 2 2

Capacity Utilisation (%) percentage 70% 70% 80% 90% 90% 90% 90% 90% 90%

Quantity of Papaya tonnes/day 45% 1.40 1.40 1.60 1.80 1.80 1.80 1.80 1.80 1.80

Sugar (30% of sugar syrup) tonnes/day 55% 0.51 0.51 0.59 0.66 0.66 0.66 0.66 0.66 0.66

Processing Losses percentage 40% 0.77 0.77 0.87 0.98 0.98 0.98 0.98 0.98 0.98

Total quantity after processing loss tonnes/day 1.15 1.15 1.31 1.48 1.48 1.48 1.48 1.48 1.48

Product Mix Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Tutti Frutti 100% 30% 50% 35% 60% 70% 80% 70% 60%

No. of Days of operation no. 150 150 150 150 150 150 150 150 150

Operational Cost Assumptions Units YoY Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Papaya Rs/kg 1% 18 18 18 18 18 18 19 19 19

Sugar Rs/kg 1% 30 30 31 31 31 32 32 32 32

Selling Price Assumptions Units YoY Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Tutti Frutti Rs/kg 1% 55.00 55.28 55.55 55.83 56.11 56.39 56.67 56.95 57.24

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4.2.2. Profit and Loss statement

Table 10 Profit and Loss statement

Particulars (Rs. Lakhs) Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Tutti Frutti

94.71 95.18 109.33 123.61 124.22 124.84 125.47 126.10 126.73

Total Income - 94.71 95.18 109.33 123.61 124.22 124.84 125.47 126.10 126.73

Raw material

60.90 61.32 70.56 79.93 80.49 81.04 81.60 82.17 82.74

Power

0.69 0.71 0.73 0.74 0.76 0.78 0.80 0.82 0.84

Packing Cost

3.44 3.62 4.13 4.65 4.65 4.65 4.65 4.65 4.65

Water

0.22 0.22 0.23 0.23 0.24 0.24 0.25 0.26 -

Total Direct Expenses

65.25 65.87 75.65 85.56 86.14 86.72 87.30 87.90 88.23

Gross Profit

29.46 29.32 33.68 38.05 38.09 38.13 38.16 38.20 38.50

Manpower

9.74 10.23 11.69 13.15 13.15 13.15 13.15 13.15 13.15

Repairs & Maintenance

0.17 0.18 0.19 0.20 0.21 0.22 0.23 0.24 0.26

Insurance

0.09 0.09 0.09 0.10 0.10 0.11 0.12 0.12 0.13

Admin Expenses

2.00 2.10 2.21 2.32 2.43 2.55 2.68 2.81 2.95

Travelling Expenses

1.52 0.87 1.05 1.98 2.08 2.19 2.30 2.41 2.53

Total In-Direct Expenses - 13.52 13.48 15.23 17.75 17.98 18.23 18.48 18.75 19.02

EBITDA

15.94 15.84 18.44 20.29 20.10 19.90 19.69 19.45 19.47

Depreciation for Civil Works - 1.26 0.81 0.75 0.70 0.65 0.60 0.56 0.52 0.48

Depreciation on P&M - 1.73 1.54 1.38 1.23 1.10 0.98 0.87 0.78 0.70

Depreciation on Others Components - 0.43 0.39 0.37 0.34 0.32 0.29 0.27 0.25 0.16

Amortization (IDC, Pre-ops, Contingency) - 1.33 1.33 1.33 1.33 1.33 - - - -

Sub-Total - 4.74 4.08 3.83 3.60 3.39 1.87 1.71 1.55 1.34

EBIT - 11.20 11.76 14.62 16.69 16.71 18.03 17.98 17.90 18.13

Interest on Term Loan

1.79 1.46 1.11 0.72 0.29 Interest on Working Capital - Normal

0.70 0.60 0.96 1.08 1.09 1.09 1.10 0.46 0.28

PBT - 8.71 9.71 12.55 14.90 15.34 16.94 16.88 17.44 17.85

Tax - 0.31 0.57 1.89 2.59 2.73 3.21 3.19 3.36 3.48

PAT - 8.40 9.14 10.66 12.30 12.61 13.73 13.69 14.08 14.37

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4.2.3 Balance Sheet

Table 11 Balance Sheet

PARTICULARS (Amount in Rs. Lakh) Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

LIABILITIES and SHAREHOLDER'S EQUITY

A) Promoters Funds

Capital Contribution 21.3 21.3 21.3 21.3 21.3 21.3 21.3 21.3 21.3 21.3

PAT - 8.4 9.1 10.7 12.3 12.6 13.7 13.7 14.1 14.4

PAT after appropriations - 8.4 17.5 28.2 40.5 53.1 66.8 80.5 94.6 109.0

Sub-Total 21.3 29.7 38.9 49.5 61.8 74.4 88.2 101.9 115.9 130.3

B) Debt Long Term Loans Term Loan - Outstanding 20.0 16.7 13.1 9.1 4.8 - - - - -

Sub-Total 20.0 16.7 13.1 9.1 4.8 - - - - -

C)Current Liabilities Creditors - others - 0.2 0.2 0.2 0.3 0.3 0.3 0.3 0.3 0.3

Creditors - Raw Material - 2.0 2.0 2.4 2.7 2.7 2.7 2.7 2.7 2.8

Bank Finance - Working Capital - 4.4 5.2 6.0 6.8 6.8 6.8 6.9 2.9 1.7

Total Current Liabilities - 6.6 7.5 8.6 9.7 9.7 9.8 9.8 5.9 4.8

TOTAL LIABILITIES 41.3 53.0 59.4 67.2 76.3 84.2 98.0 111.7 121.8 135.1

ASSETS D)Land - - - - - - - - - -

Fixed Assets Gross Block (Civil + P&M) 20.5 34.7 31.2 28.5 26.0 23.7 21.7 19.8 18.1 16.5

Purchases 14.2 - - - - - - - - -

Less: Depreciation - 3.4 2.7 2.5 2.3 2.1 1.9 1.7 1.6 1.3

Sub-Total 34.7 31.2 28.5 26.0 23.7 21.7 19.8 18.1 16.5 15.2

E)Current Assets Net Debtors - 4.3 4.3 4.9 5.6 5.6 5.6 5.7 5.7 5.7

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PARTICULARS (Amount in Rs. Lakh) Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Cash & Bank Balance - 9.0 19.5 30.0 41.5 52.8 68.4 83.8 95.4 109.9

Stock - 3.2 3.2 3.6 4.1 4.1 4.2 4.2 4.2 4.2

Sub-Total - 16.5 26.9 38.6 51.2 62.5 78.2 93.6 105.3 119.9

F)IDC, Pre-ops written off 6.7 5.3 4.0 2.7 1.3

TOTAL ASSETS 41.3 53.0 59.4 67.2 76.3 84.2 98.0 111.7 121.8 135.1

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