Contents Table

Contents Link
Annexure 1 - Estimated cost of the project Ann 1
Annexure 2 - Means of Finance Ann 2
Annexure 3 - Complete Estimate of Civil and Plant and Machinery Ann 3
Annexure 4 - Estimated Cost of Production Ann 4
Annexure 5- Projected balance sheet Ann 5
Annexure 8 - Details of Mnpower Ann 8
Annexure 9 - Computation of Depreciation Ann 9
Annexure 10 - Calculation of Income tax Ann 10
Annexure 11- Break even analysis (At maximum capacity utilization) Ann 11
Annexure 13 - Repayment schedule Ann 13
Annexure 14 - Cash flow statement Ann 14
Assumptions Assumptions
Sales Budget Budgets
DPR without subsidy

Annexure 1 - Estimated cost of the project

Estimated cost of project

Grand Total (in
Sr. No. Particulars lakhs)
1 Land and site development
(a) Land (Site Development) 43.42
Total 43.42

3 Civil Work
(a) Civil Work 419.00
Total 419.00

4 Plant and Machinery (indegenous)

(a) Plant and Machinery 360.00
Total 360.00

5 Miscellanoeus Fixed Assets

(a) Cost 6.00

6 Working Capital Margin 5.00

7 Preliminary Expenses -
(a) Security Deposit -
Total

8 Pre-Operative Expense
(for 6 months upto the date od commencement of
commercial production)
(a) Establisment and Travelling and Other Expenses
(b) Legal and Misc Expense 2.00
Total 2.00

9 Service Centre Infrastructure -

10 Contingencies 1.135

Total Cost of Project 836.56

Annexure 2 - Means of Finance

Sr. No. Item Grand Total (in lakhs)

1 Promoter's equity 209.14
2 Eligible Assistance -
3 Term Loan 622.42
4 CC Limit 5.00
Total 836.56
Annexure 3 - Complete Estimate of Civil and Plant and Machinery

1. Civil Work Units Amt

1 Civil work for building 1 41,900,000
Total Civil Work 41,900,000

2. Plant and machinery Units Amt

1 Butterfly separator 1
2 Destoner 1
3 Paddy dehusker 1
4 Rubber sheller 1
5 Rice whitener 1
6 Rice drum grader 1
7 Bucket elevator 1
8 Weighing machine at platform 1
9 Form fill and seal machine 1 36,000,000
Total Plant and Machinery 36,000,000

3. Miscellanoeus Fixed Asset 600000

Total fixed Assets 78,500,000

Annexure 4 - Estimated Cost of Production

Year ending March 31st

Sr. No Description
I II III IV V VI VII VIII IX
No of Working months 12 12 12 12 12 12 12 12 12

Input paddy cost 170,294,400 191,581,200 204,353,280 217,125,360 229,897,440 242,669,520 255,441,600 255,441,600 255,441,600
Electricity expense 2,060,000 2,158,000 2,260,900 2,368,945 2,482,392 2,601,512 2,726,587 2,726,587 2,726,587
Insurance cost @ 2% of purchase cost 720,000 756,000 793,800 833,490 875,165 918,923 964,869 1,013,112 1,063,768
Running and Manintenance expense @10% of sales 17,029,440 20,116,026 22,529,949 25,134,974 27,944,178 30,971,463 34,231,617 35,943,198 37,740,358
Cost of Production 190,103,840 214,611,226 229,937,929 245,462,769 261,199,174 277,161,418 293,364,674 295,124,498 296,972,314
Add: Opening Stock - 1,412,813 2,926,541 4,541,184 6,256,742 8,073,216 6,155,827 4,137,523 2,119,219
Less: Closing Stock 1,412,813 2,926,541 4,541,184 6,256,742 8,073,216 6,155,827 4,137,523 2,119,219 100,915
Sub Total 188,691,027 213,097,498 228,323,286 243,747,211 259,382,701 279,078,807 295,382,978 297,142,802 298,990,618

Administrative salaries and wages 1,188,000 1,271,160 1,360,141 1,455,351 1,557,226 1,666,231 1,782,868 1,907,668 2,041,205
Fixed charge for office 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000 240,000
Total 1,428,000 1,511,160 1,600,141 1,695,351 1,797,226 1,906,231 2,022,868 2,147,668 2,281,205

Cost of Sales 190,119,027 214,608,658 229,923,427 245,442,562 261,179,926 280,985,038 297,405,845 299,290,470 301,271,823
Expected sales revenue 199,559,808 225,817,470 245,242,858 265,679,013 287,257,064 310,124,254 334,445,858 343,245,059 352,924,181
Gross Profit 9,440,781 11,208,812 15,319,430 20,236,451 26,077,138 29,139,216 37,040,012 43,954,589 51,652,359

Financial expense
Interest on Term Loan 4,931,482 4,309,066 3,543,015 2,776,964 2,010,913 718,188 - - -
Interest on WC Loan 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000
Total Financial expense 4,971,482 4,349,066 3,583,015 2,816,964 2,050,913 758,188 40,000 40,000 40,000

Operating profits (PBT) 4,469,299 6,859,746 11,736,416 17,419,487 24,026,225 28,381,028 37,000,012 43,914,589 51,612,359
Preliminary Expense 200,000 - - - - - - - -
depreciation 9,661,350 8,425,215 7,353,194 6,422,799 5,614,705 4,912,293 4,301,263 3,769,307 3,305,820
Net Profit before Tax (5,392,051) (1,565,469) 4,383,222 10,996,688 18,411,519 23,468,735 32,698,749 40,145,282 48,306,538
Income Tax/ savings on tax - (469,641) 1,314,967 3,299,006 5,523,456 7,040,621 9,809,625 12,043,585 14,491,961
Profits after Tax (5,392,051) (1,095,828) 3,068,256 7,697,682 12,888,063 16,428,115 22,889,124 28,101,697 33,814,577
Distribution of profits (80%) - - - - - - - - -
Profit transfer to balance sheet (5,392,051) (1,095,828) 3,068,256 7,697,682 12,888,063 16,428,115 22,889,124 28,101,697 33,814,577

1. Electricity are semi-fixed cost. Rs. 100,000 pa is fixed, balance is variable at Rs. 14 per unit usage
2. Electricity usage in units is given below
Usage in units 140000 147000 154350 162067.5 170170.875 178679.41875 187613.3896875 187613.3896875 187613.3896875
Variable cost 1960000 2058000 2160900 2268945 2382392.25 2501511.8625 2626587.455625 2626587.455625 2626587.455625
3. It is assumed that insuarance cost is 2% of purchase price and this will increase 5% annually
4. Closing stock is valued at Rs 38 (avg cost)
5. Input paddy cost is considered to increase by 5% annually.
Annexure 5- Projected balance sheet

Projected Baalance sheet

Year ending March 31st

Sr. No Description
I II III IV V VI VII VIII IX
A Asset
1 Fixed Capital expenditure
Gross Block 82,955,500 73,294,150.00 64,868,935.00 57,515,741.50 51,092,942.35 45,478,236.87 40,565,943.62 36,264,680.13 32,495,373.35
Less- Depreciation 9,661,350 8,425,215.00 7,353,193.50 6,422,799.15 5,614,705.49 4,912,293.25 4,301,263.49 3,769,306.77 3,305,820.28
net Block 73,294,150 64,868,935.00 57,515,741.50 51,092,942.35 45,478,236.87 40,565,943.62 36,264,680.13 32,495,373.35 29,189,553.07
2 Sundry debtors 16,629,984 18,818,123 20,436,905 22,139,918 23,938,089 25,843,688 27,870,488 28,603,755 29,410,348
3 Closing stock 1,412,813 2,926,541 4,541,184 6,256,742 8,073,216 6,155,827 4,137,523 2,119,219 100,915
4 Cash/ bank balance 13,359,325 11,473,442 11,616,831 15,305,957 23,215,327 28,049,108 57,903,038 91,344,343 129,975,977
Total assets 104,696,272 98,087,040 94,110,661 94,795,559 100,704,869 100,614,567 126,175,730 154,562,691 188,676,794

B Liabilities
1 Capital 20,913,875 15,521,824 14,425,996 17,494,251 25,191,933 38,079,996 54,508,111 77,397,235 105,498,933
Add- Profit (5,392,051) (1,095,828) 3,068,256 7,697,682 12,888,063 16,428,115 22,889,124 28,101,697 33,814,577
Less- Drawings - - - - - - - - -
Closing capital 15,521,824 14,425,996 17,494,251 25,191,933 38,079,996 54,508,111 77,397,235 105,498,933 139,313,509
2 term Loan 57,454,183 47,878,548 38,302,913 28,727,279 19,151,644 - - - -
3 Working capital 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000
4 Creditors 31,220,640 35,282,871 37,813,872 40,376,722 42,973,603 45,606,831 48,278,870 48,564,133 48,863,660
Total liabilities 104,696,647 98,087,415 94,111,036 94,795,934 100,705,244 100,614,942 126,176,105 154,563,066 188,677,169

Current Ratio
Current Assets 31,402,122 33,218,105 36,594,920 43,702,617 55,226,632 60,048,623 89,911,050 122,067,317 159,487,241
Current Liabilities 31,720,640 35,782,871 38,313,872 40,876,722 43,473,603 46,106,831 48,778,870 49,064,133 49,363,660
Ratio 0.989958640979 0.9283241986411 0.95513500775514 1.06913212365027 1.27034862663459 1.30238019413563 1.84323766240005 2.4879134648755 3.2308633904346
Average 1.56414370105621

Debt Equity ratio

Debt 57,954,183 48,378,548 38,802,913 29,227,279 19,651,644 500,000 500,000 500,000 500,000
Equity 15,521,824 14,425,996 17,494,251 25,191,933 38,079,996 54,508,111 77,397,235 105,498,933 139,313,509
Ratio 3.7337224538064 3.353567280908 2.21803793572192 1.16018404354881 0.51606213361675 0.00917294675742 0.00646017909382 0.0047393844451 0.0035890273843
Average 1.22283726503139

Fixed asset coverage ratio

Fixed assets 73,294,150 64,868,935 57,515,742 51,092,942 45,478,237 40,565,944 36,264,680 32,495,373 29,189,553
Debt 57,954,183 48,378,548 38,802,913 29,227,279 19,651,644 500,000 500,000 500,000 500,000
ratio 1.2646912887916 1.3408615508026 1.48225317042262 1.74812518876432 2.31422044542172 - - - -
0.905572404911429

Debt service coverage ratio

Interest on loan (TL + WC) 4,931,482 4,309,066 3,543,015 2,776,964 2,010,913 718,188 - - -
Instalment of loan 5,287,817 10,075,635 10,075,635 10,075,635 10,075,635 19,651,644 500,000 500,000 500,000
Total 10,219,299 14,384,700 13,618,649 12,852,599 12,086,548 20,369,832 500,000 500,000 500,000
Net operating income 9,440,781 11,208,812 15,319,430 20,236,451 26,077,138 29,139,216 37,040,012 43,954,589 51,652,359
ratio 0.9238188133687 0.7792176305485 1.12488617660141 1.57450269739374 2.15753398482066 1.43050841635532 - - -
Average 1.31199186054659

1. asssumed that 60 days of purchases are average creditors maintained

2. assumed that 30 days of sales are average debtors maintained by the business
Annexure 8 - Details of Mnpower

Details of Manpower

S. No. Designation In no. Salary per person per month Annual cost
i. Factory manager 1 15,000 180,000
ii. Accountant cum cashier 1 10,000 120,000
iii. Mechanic 5 6,000 360,000
iv. Security 2 5,000 120,000
v. Labour 5 300,000 See note
Total 1,080,000

Add: benefits @ 10% 108,000

Total 1,188,000

Total annual wages 1,188,000

Annual increase in wages 7%
Total manpower 14

Note- It is assumed that some of the labour remains even in the off days, considering working days to be 300 days
Annexure 9 - Computation of Depreciation

Computation of Depreciation

Sr. No. Particulars Building and civil wor Plant and MachineryMisc Fixed AssetAmount in lakhs
i. Cost 41,900,000 36,000,000 600,000 785.00
ii. Pre operatives - - - 0.00
iii. Contingencies - - 113,500 1.14
Total 786.14

Rates of Depreciation 10% 15% 10% Total depreciation for the year
Year 1 4,190,000.00 5,400,000.00 71,350.00 9,661,350.00
Year 2 3,771,000.00 4,590,000.00 64,215.00 8,425,215.00
Year 3 3,393,900.00 3,901,500.00 57,793.50 7,353,193.50
Year 4 3,054,510.00 3,316,275.00 52,014.15 6,422,799.15
Year 5 2,749,059.00 2,818,833.75 46,812.74 5,614,705.49
Year 6 2,474,153.10 2,396,008.69 42,131.46 4,912,293.25
Year 7 2,226,737.79 2,036,607.38 37,918.32 4,301,263.49
Year 8 2,004,064.01 1,731,116.28 34,126.48 3,769,306.77
Year 9 1,803,657.61 1,471,448.84 30,713.84 3,305,820.28
Annexure 10 - Calculation of Income tax

Calculation of Income Tax

Year ending March 31st

Particulars I II III IV V VI VII VIII IX
Net profit before tax 4,469,299 6,859,746 11,736,416 17,419,487 24,026,225 28,381,028 37,000,012 43,914,589 51,612,359
Add- dep on SLM - - - - - - - - -
Sub total 4,469,299 6,859,746 11,736,416 17,419,487 24,026,225 28,381,028 37,000,012 43,914,589 51,612,359
Less- Dep on WDV 9,661,350 8,425,215 7,353,194 6,422,799 5,614,705 4,912,293 4,301,263 3,769,307 3,305,820
Sub total (5,192,051) (1,565,469) 4,383,222 10,996,688 18,411,519 23,468,735 32,698,749 40,145,282 48,306,538
Less - Deductions - - - - - - - - -
Taxable profits (5,192,051) (1,565,469) 4,383,222 10,996,688 18,411,519 23,468,735 32,698,749 40,145,282 48,306,538
Income tax @30% - (469,641) 1,314,967 3,299,006 5,523,456 7,040,621 9,809,625 12,043,585 14,491,961
Annexure 11- Break even analysis (At maximum capacity utilization)

Break even capacity at maximum capacity utilixzation

Sales 285,085,440
Variable cost
- Running and maintenance cost 14,254,272
- Interest on Working capital -
- electricity expense 2,626,587 16,880,859
Contribution 268,204,581
Less: Fixed costs
Wages and salaries 1,188,000
Insurance 720,000
Depreciation 9,661,350
Fixed charges for office 240,000
Electricity fixed charge 100,000
Interest on TL 4,931,482
Fixed cost 16,840,832

Particulars Rs. per kg

Sales price per kg 35
Variable costs
Inut paddy cost 28.28571428571
Electricity cost 0.28
Running and maintenance 3.5
Interest on working capital -
Contribution per unit 2.936657241469
BEP in kgs 5,734,694.40
Total BEP % 60.62%

Break-even point is the condition when an entity generate sufficient revenue that it can meet its
fixed expense after deducting any variable expense, i.e., the point where contribution is equal to
the fixed expense.

For the first year of operation the break-even capacity comes at 9.59% capacity, it is because of
the fact that in the Initial year the fixed expense of consultancy for project is taken in to
consideration for calculation of BEP. considering our operational capacity in year 1 to be 75%
which is more than the BEP, hence we can conclude that the project is sound enough to cover
its fixed expense.
Annexure 12 - Profitability statement

Years
1 2 3 4 5 6 7 8
Vegetable procument Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509
Fruits procurement e Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509
Direct Expenses
 9
Err:509
Err:509
Annexure 13 - Repayment schedule

Repayment schedule
Amount of Loan (in lakhs) 622.416
Rate of interest 8.00%
Moratorium period 6 months

Year Quarter Balance outstanding Principal instalment Interest

1 622.42 0 12.4484
2 622.42 0 12.4484
1
3 622.42 23.9390865384615 12.4484
4 598.480913461538 23.9390865384615 11.9696
1 574.541826923077 23.9390865384615 11.4908
2 550.602740384615 23.9390865384615 11.0121
2
3 526.663653846154 23.9390865384615 10.5333
4 502.724567307692 23.9390865384615 10.0545
1 478.785480769231 23.9390865384615 9.57571
2 454.846394230769 23.9390865384615 9.09693
3
3 430.907307692308 23.9390865384615 8.61815
4 406.968221153846 23.9390865384615 8.13936
1 383.029134615385 23.9390865384615 7.66058
2 359.090048076923 23.9390865384615 7.1818
4
3 335.150961538462 23.9390865384615 6.70302
4 311.211875 23.9390865384615 6.22424
1 287.272788461538 23.9390865384615 5.74546
2 263.333701923077 23.9390865384615 5.26667
5
3 239.394615384615 23.9390865384615 4.78789
4 215.455528846154 23.9390865384615 4.30911
1 191.516442307692 23.9390865384615 3.83033
2 167.577355769231 167.577355769231 3.35155
6
3 0 0 0
4 0 0 0
1 0 0 0
2 0 0 0
7
3 0 0 0
4 0 0.00 0
Annexure 14 - Cash flow statement

Particulars 0 I II III IV V VI VII VIII IX

opening balance 500,000 500,000 13,359,325 11,473,442 11,616,831 15,305,957 23,215,327 28,049,108 57,903,038 91,344,343
Add: Capital 20,913,875 - - - - - - - - -
Add: Loan disbursement 62,241,625 - - - - - - - - -
Less: Purchase of asset 78,613,500 - - - - - - - - -
Less: Land purchase & Development 4,342,000
Add: Sales realizations - 182,929,824 206,999,348 224,805,953 243,539,096 263,318,975 284,280,566 306,575,369 314,641,304 323,513,833
Less: Payment made to creditors of previos year - - 31,220,640 35,282,871 37,813,872 40,376,722 42,973,603 45,606,831 48,278,870 48,564,133
Add: Receipts from debtors of previos year - - 16,629,984 18,818,123 20,436,905 22,139,918 23,938,089 25,843,688 27,870,488 28,603,755
Less: Payments made for current year purchase - 160,311,200 180,839,515 193,724,199 206,781,398 220,022,797 233,460,819 247,108,672 248,708,033 250,389,859
Less: Pre incorporation expense 200,000 - - - - - - - - -
Less: Interest payments - 4,971,482 4,349,066 3,583,015 2,816,964 2,050,913 758,188 40,000 40,000 40,000
500,000 18,147,142 20,579,436 22,507,432 28,180,598 38,314,417 54,241,373 67,712,663 103,387,928 144,467,939
Less: Income tax - - (469,641) 1,314,967 3,299,006 5,523,456 7,040,621 9,809,625 12,043,585 14,491,961
- 18,147,142 21,049,076 21,192,466 24,881,591 32,790,962 47,200,752 57,903,038 91,344,343 129,975,977
Less: Distrubutions made from profits - - - - - - - - - -
- 18,147,142 21,049,076 21,192,466 24,881,591 32,790,962 47,200,752 57,903,038 91,344,343 129,975,977
Less: Principal repayment of loan - 4,787,817 9,575,635 9,575,635 9,575,635 9,575,635 19,151,644 - - -
Closing cash balance 500,000 13,359,325 11,473,442 11,616,831 15,305,957 23,215,327 28,049,108 57,903,038 91,344,343 129,975,977

PV dicounting rate 6.00%

PVF 1 0.943396226 0.889996440 0.839619283 0.792093663 0.747258173 0.704960540 0.665057114 0.627412371 0.591898464
Inflows 83,655,500 183,429,824 236,988,656 255,097,517 275,592,832 300,764,850 331,433,982 360,468,165 400,414,831 443,461,931
PV of Inflows 83,655,500 173,047,004 210,919,060 214,184,794 218,295,336 224,748,992 233,647,879 239,731,918 251,225,218 262,484,436
Outflows 83,155,500 170,070,499 225,515,215 243,480,686 260,286,875 277,549,523 303,384,874 302,565,127 309,070,488 313,485,954
PV of Outflows 83,155,500 160,443,867 200,707,738 204,431,079 206,171,584 207,401,149 213,874,365 201,223,090 193,914,648 185,551,854

Net cash inflow 500,000 13,359,325 11,473,442 11,616,831 15,305,957 23,215,327 28,049,108 57,903,038 91,344,343 129,975,977
Net Present value 500,000 12,603,137 10,211,322 9,753,715 12,123,751 17,347,843 19,773,514 38,508,827 57,310,571 76,932,581 254,565,263
 Sales Budget
Year ending March 31st
S. No. Particulars
I II III IV V VI VII VIII IX
A. Estimated ocupational capacity 70% 75% 80% 85% 90% 95% 100% 100% 100%
B. Production capacity (kgs) [A. X Total capacity] 6,622,560 7,095,600 7,568,640 8,041,680 8,514,720 8,987,760 9,460,800 9,460,800 9,460,800
C. Own produce (kgs) [B. X 2/3] 4,415,040 4,730,400 5,045,760 5,361,120 5,676,480 5,991,840 6,307,200 6,307,200 6,307,200
D. Government produce (kgs) [B. X 1/3] 2,207,520 2,365,200 2,522,880 2,680,560 2,838,240 2,995,920 3,153,600 3,153,600 3,153,600
E. Revenue from sale of own produce [C. X Sale price per kg] 154,526,400 173,842,200 185,431,680 197,021,160 208,610,640 220,200,120 231,789,600 231,789,600 231,789,600
F. Revenue from processing government produce [D. X Processing charges] 331,128 354,780 378,432 402,084 425,736 449,388 473,040 473,040 473,040
G. Input required (kgs) [C. X Input output ratio] 9,460,800 10,136,571 10,812,343 11,488,114 12,163,886 12,839,657 13,515,429 13,515,429 13,515,429
H. Sale of by products -Husk 9,933,840 10,643,400 11,352,960 12,062,520 12,772,080 13,481,640 14,191,200 14,191,200 14,191,200
I. Sale of by products -Bran 34,768,440 40,977,090 48,079,786 56,193,249 65,448,608 75,993,106 87,992,018 96,791,219 106,470,341
Total revenue 199,559,808 225,817,470 245,242,858 265,679,013 287,257,064 310,124,254 334,445,858 343,245,059 352,924,181

Estimation of Production capacity

Per annum capacity in kgs 9,460,800

Operational days 225 days

Products Production at sales prices per kg purchase price Processing

100% capacity per kg charges for
government
produce per kg
Output 9,460,800 35.0 18.0 0.15

Production Budget
Year ending March 31st
Particulars
I II III IV V VI VII VIII IX
Opening Stock - 44,150 91,454 141,912 195,523 252,288 192,370 129,298 66,226
Production 4,415,040 4,730,400 5,045,760 5,361,120 5,676,480 5,991,840 6,307,200 6,307,200 6,307,200
Sales 4,370,890 4,683,096 4,995,302 5,307,509 5,619,715 6,051,758 6,370,272 6,370,272 6,370,272
Closing Stock 44,150 91,454 141,912 195,523 252,288 192,370 129,298 66,226 3,154

It is assumed that 2/3rd capacity of rice mill is used to process own produce, i.e., to process paddy into rice which is further sold by rice mill in the market. The balance 1/3rd capacity is used to process the government produce, for such processing rice mill
charges minimal processing charges.

In case of processing own produce, paddy is procured from farmers and processed for selling. While for government produce, paddy is provided to mill for further processing and only processing charges are taken for such work.
Sales proce per kg is Rs. 35 (considering single type of output rice) which will increase 5% annually
Input output ratio is taken to be 70%
Assumed that Husk being by product of producing the rice, is 10% of the total production capacity. Sale price of husk per kg is rs. 10
S. no. Assumptions
1 Electricity are semi-fixed cost. Rs. 100,000 pa is fixed, balance is variable at Rs. 14 per unit usage
2 Electricity usage in units is given below
Usage in units 140000 147000 154350 162067.5 170170.875 178679.41875 187613.38969 187613.38969 187613.38969
Variable cost 1960000 2058000 2160900 2268945 2382392.25 2501511.8625 2626587.4556 2626587.4556 2626587.4556
3 Asssumed that 60 days of purchases are average creditors maintained
4 Assumed that 30 days of sales are average debtors maintained by the business
5 It is assumed that insuarance cost is 2% of purchase price and this will increase 5% annually