Besan Mill Project

PROJECT REPORT OF

B ES ESA N & D A L M I L L M/ S. JAGD JAGD AMB A A GRO & FOOD PROD U CTS

- : Pr Pr e p a r e d b y ::SH REY REYAN S T. SH SH AH & CO.

Ch a r t e r ed e d A cc cc o u n t a n t s

1 2 7 / 2 , R o ck c k el e l L a n e, N ex ex t t o D r . K a n t i Sh a h H o s sp pi t a l , Va k h a r b h a g , Sa n g l i T el : ( 0 2 3 3 ) 2 6 2 3 6 2 5 , 2 6 2 2 5 3 6

HIGHLIGHTS OF THE PROJECT

1.

Name of the unit

:

JAGDAMBA AGRO & FOOD PRODUCTS

2.

Address of unit

:

Proposed Plot in Tembhurni MIDC.

3.

Constit ution

:

Propriet orship : Sou. Vijaymala Govardhan Chavarepatil

4.

Nature of Activity

:

Dal & Besan Mill.

5.

Cost of Project

:

344.00 Lacs

6.

Means of Finance

:

Capit al

86.00

Lacs

Bank Loan

258.00

Lacs

Tot al 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 t his project considering immediate use and fut ure 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 att ached herewith. These machines include following items: 1. Screening Machines 2. Polishing machines 3. Milling Machines 4. Hoppers 5. Packing Machines 6. Various Mot ors

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 contribut ion B. Bank Term Loan Total

86.00 258.00 344.00

Implementation Schedule: This project will be implemented in following schedule: Sr. No.

Activit y 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.

Init ial 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 allot ment.

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 & Sit e Development

15.00

Building - Drying Platform : 1000 Sq. Mtrs. @ Rs. 1000 / Sq. Mtrs. = - Factory Building : 1000 Sq. Mtrs. @ Rs. 5000 / Sq. Mtrs. = - Godown Shed : 2000 Sq. Mt rs. @ Rs. 4000 / Sq. Mt rs. =

140.00 10.00 50.00 80.00

Machinery

175.00

Elect. Installation & Other Assets

10.00

Per-op. Expenses

4.00 344.00

MEANSOF FINANCE : Promot ers 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

30.00 Days

263.48

Receivables 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

:

Unit Consumption

:

Yearly Consumption

:

Yearly Cost

:

150 HP 2012 Units Day 603450 Units @ Rs.

5.20

31.38 Rs. Lacs

CAPACITY : Production Capacity

:

No. of Working Day

:

300 Days

No. of Shift

:

Single or Two

Operating Level = Wastage

20 MT per day

60% 3600 MT per year 20%

Sales Mt

Rate / MT

(Rs. In Lacs)

Besan

3600

70000

2520

Scrap

765.00

15000

114.75 2634.75

Purchases Raw Material Harbhara

Mt

Rate / MT

(Rs. In Lacs)

4500.00

50000.00

2250

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

LABOUR No. of Person

Salary

Mont hs

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. :Packing Material @ 1 % of Sales

Rs.In Lacs 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

2357.41 277.34

Less : Interest on T. L.

33.54

Interest on C. C.

44.21

Deperciation

49.00

Selling & Admin Exps. @ 2%

52.70 179.45

Net Profit Bef. Tax Less :- Income Tax @

179.45 97.89

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

PROFITABLITY STATEMENT (FIVE EARS) Rs.In Lacs PARTICUALRS Utilization %

I 60%

II 65%

III 70%

IV 75%

V 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

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

117.52

132.12

147.03

161.47

176.01

51.60

51.60

51.60

51.60

51.60

1.77

2.03

2.33

2.69

3.13

Gross Profit

Cash Accruals Loan Repayment D.S.C.R. Average D. S. C. R.

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

2.39

CASH FLOW & FUND FLOW (FIVE EARS) 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/ SLoan

0.00

0.00

0.00

0.00

0.00

Others -

0.00

0.00

0.00

0.00

0.00

915.00

132.12

147.03

161.47

176.01

0.00

0.00

0.00

0.00

0.00

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

453.48

45.00

45.00

45.00

45.00

0.00

0.00

0.00

0.00

0.00

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

Total Application (A)

Dispossion of Funds Pre-op Expenses Increase in Capital Expenditure

Increase in Working Capital Others (specify) Total Dispossion (B)

PROJECTED BALANCE-SHEET (FIVE YEARS) Rs.In Lacs I

II

III

IV

V

199.37

199.37

199.37

199.37

199.37

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

814.40

854.32

916.01

997.76

1098.65

Gross Block

344.00

344.00

344.00

344.00

594.00

Depreciation

49.00

89.60

123.34

151.47

174.99

295.00

254.40

220.66

192.53

419.01

0.00

0.00

0.00

0.00

0.00

453.48

498.48

543.48

588.48

633.48

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

Liabilities Capital Reserve & Surplus

Total

Assets :

Net Block Pre-operative Exps Current Assets Cash & Bank balance

INTEREST SCHEDULE : Rs.In Lacs PARTICULARS

Bank T. L.

INTEREST 13%

Bank C. C.

INTEREST 13%

BALANCE

258.00

340.11

[-] Ist Yr. Installment BALANCE

51.60 206.40

33.54

0.00 340.11

44.21

[-] IIst Yr. Installment BALANCE

51.60 154.80

26.83

0.00 340.11

44.21

[-] IIIrd Yr. Installment BALANCE

51.60 103.20

20.12

0.00 340.11

44.21

[-] IVth Yr. Installment BALANCE

51.60 51.60

13.42

0.00 340.11

44.21

[-] Vth Yr. Installment BALANCE

51.60 0.00

6.71

0.00 340.11

44.21

DEPRECIATION SCHEDULE PATICULARS

Rs.In Lacs Building 10% 140.00

Machinery 20% 175.00

[-] Ist YR. Depr. W.D.V.

14.00 126.00

35.00 140.00

49.00

[-] IInd Yr. Depr.

12.60 113.40

28.00 112.00

40.60

[-] IIIrd YR. Depr. W.D.V.

11.34 102.06

22.40 89.60

33.74

[-] IVnd Yr. Depr. WDV

10.21 91.85

17.92 71.68

28.13

[-] Vnd Yr. Depr. WDV

9.19 82.67

14.34 57.34

23.52

OP.BALANCE

Total Depr.