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 Dal & Besan Mill.

4.

Nature of Activity

5.

Cost of Project

344.00 Lacs

6.

Means of Finance

Capital Bank Loan Total Rs.

86.00 258.00 344.00

Lacs Lacs 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 B. Building C. Plant & Machinery D. Electrification & Installation E. Misc. & Other Assets Total 15.00 140.00 175.00 10.00 04.00 344.00

Means of Finance: This project shall be financed in following manner: Rs. In Lacs A. Capital contribution B. Bank Term Loan Total 86.00 258.00 344.00

Implementation Schedule: This project will be implemented in following schedule: Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. Activity Period Acquisition and development of land Civil work and building construction Procurement of machinery and equipment Arrangement for power supply Water supply Arrangements Erection and installation of machinery Initial Procurement and commissioning Trial Runs Commercial Production 2 months 10 months 2-3 months 1 month 2 weeks 1 month 1 month 2 weeks 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 Building - Drying Platform : 1000 Sq. Mtrs. @ Rs. 1000 / Sq. Mtrs. = - Factory Building : 1000 Sq. Mtrs. @ Rs. 5000 / Sq. Mtrs. = - Godown Shed : 2000 Sq. Mtrs. @ Rs. 4000 / Sq. Mtrs. =

15.00 140.00 10.00 50.00 80.00

Machinery Elect. Installation & Other Assets Per-op. Expenses

175.00 10.00 4.00 344.00

MEANS OF FINANCE : Promoters Contribution Bank Term Loan 86.00 258.00

344.00

REQUIREMENT OF WORKING CAPITAL Stock of Raw Material Stock of work in process Stock of Finished Goods Receivables Total Working Capital 15.00 Days 3.00 Days 7.00 Days 30.00 Days 112.50 22.50 55.01 263.48 453.48

Bank Facility (Cash Credit) Margin

@ 75 % @ 25 %

340.11 113.37 453.48

DEPRECIATION : Building Machinery 10% 20% 14.00 35.00 49.00

INTEREST : Rs.In Lacs Bank T. L. Bank C. C. 13.00% 13.00% 258.00 Lacs 340.11 Lacs 33.54 44.21 77.75

POWER : Load Connection Unit Consumption Yearly Consumption Yearly Cost : : : : @ Rs. 5.20 150 HP 2012 Units Day 603450 Units 31.38 Rs. Lacs

CAPACITY : Production Capacity No. of Working Day No. of Shift Operating Level = Wastage : : : 20 MT per day 300 Days Single or Two 60% 3600 MT per year 20%

Sales Mt Besan Scrap 3600 765.00 Rate / MT 70000 15000 (Rs. In Lacs) 2520 114.75 2634.75

Purchases Raw Material Harbhara Mt 4500.00 Rate / MT 50000.00 (Rs. In Lacs) 2250

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

LABOUR No. of Person Supervisors / Staff Skilled Unskilled 4 10 20 Salary 7500.00 5000.00 3500.00 Months 12 12 12 Rs.In Lacs 3.60 6.00 8.40 18.00

MISC. EXP. :Packing Material @ 1 % of Sales Freight & Hamali @ Rs. 15000 p.m. Printing & Stat. @ Rs. 2000 p.m. Advertisement @ Rs. 5000 p.m. Reparing & Maint. @ Rs. 7500 p.m. Travelling @ Rs. 5000 p.m. Factory Exp. @ Rs. 10000 p.m.

Rs.In Lacs 26.35 1.80 0.24 0.60 0.90 0.60 1.20 31.69

PROFITABILITY STATEMENTS : Rs.In Lacs Sales Less :- Raw Materials Labour Power Mfg. Exps. @ 1% Misc. Exp. (as per list) 2250.00 18.00 31.38 26.35 31.69 2357.41 2357.41 277.34 Less : Interest on T. L. Interest on C. C. Deperciation Selling & Admin Exps. @ 2% 33.54 44.21 49.00 52.70 179.45 Net Profit Bef. Tax Less :- Income Tax @ Net Profit After I. Tax Prov. Add :- Depreciation CASH ACCRUALS Loan Repayment D.S.C.R. 30% 179.45 97.89 29.37 68.52 49.00 117.52 51.60 1.77 2634.75

PROFITABLITY STATEMENT (FIVE EARS) Rs.In Lacs PARTICUALRS Utilization % Sales Less - Raw Material - Labour - Power - Mfg. Exps. @ 1 % - Misc. Exp. I 60% 2634.75 2250.00 18.00 31.38 26.35 31.69 2357.41 Gross Profit Less - Interest on T.L. - Interest on CC - Selling & Admin Exps. - Depreciation 277.34 33.54 44.21 52.70 49.00 179.45 Net Profit Before I. Tax Less- I. Tax Provision Net Profit After I. Tax prov. Add- Depreciation Cash Accruals Loan Repayment D.S.C.R. Average D. S. C. R. 97.89 29.37 68.52 49.00 117.52 51.60 1.77 II 65% 2854.31 2437.50 20.48 33.99 28.54 34.33 2554.84 299.47 26.83 44.21 57.09 40.60 168.73 130.74 39.22 91.52 40.60 132.12 51.60 2.03 2.39 III 70% 3073.88 2625.00 23.15 36.61 30.74 36.97 2752.47 321.41 20.12 44.21 61.48 33.74 159.56 161.85 48.55 113.29 33.74 147.03 51.60 2.33 IV 75% 3293.44 2812.50 26.05 39.22 32.93 40.61 2951.31 342.12 13.42 44.21 65.87 28.13 151.63 190.50 57.15 133.35 28.13 161.47 51.60 2.69 V 80% 3513.00 3000.00 29.17 41.84 35.13 44.32 3150.46 362.54 6.71 44.21 70.26 23.52 144.70 217.84 65.35 152.49 23.52 176.01 51.60 3.13

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

CASH FLOW & FUND FLOW (FIVE EARS) Rs.In Lacs I Sources of Funds Cash Accruals Increas in Capital Increase in Term Loan Increase in Bank Borrowing Increase in U/S Loan Others Total Application (A) 117.52 199.37 258.00 340.11 0.00 0.00 915.00 132.12 0.00 0.00 0.00 0.00 0.00 132.12 147.03 0.00 0.00 0.00 0.00 0.00 147.03 161.47 0.00 0.00 0.00 0.00 0.00 161.47 176.01 0.00 0.00 0.00 0.00 0.00 176.01 II III IV V

Dispossion of Funds Pre-op Expenses Increase in Capital Expenditure Decrease in Term Loan Decrease in Cash Credit Interest Taxation Increase in Working Capital Others (specify) Total Dispossion (B) Opening Balance Net Surplus (A-B) Closing Balance 0.00 344.00 51.60 0.00 0.00 0.00 453.48 0.00 849.08 0.00 65.92 65.92 0.00 0.00 51.60 0.00 0.00 0.00 45.00 0.00 96.60 65.92 35.52 101.44 0.00 0.00 51.60 0.00 0.00 0.00 45.00 0.00 96.60 101.44 50.43 151.87 0.00 0.00 51.60 0.00 0.00 0.00 45.00 0.00 96.60 151.87 64.87 216.75 0.00 250.00 51.60 0.00 0.00 0.00 45.00 0.00 346.60 216.75 -170.59 46.16

PROJECTED BALANCE-SHEET (FIVE YEARS) Rs.In Lacs I Liabilities Capital Reserve & Surplus Term Loans Bank Borrowing for W.C. Other Liabilities (specify) 199.37 68.52 206.40 340.11 0.00 0.00 Total 814.40 199.37 160.04 154.80 340.11 0.00 0.00 854.32 199.37 273.33 103.20 340.11 0.00 0.00 916.01 199.37 406.68 51.60 340.11 0.00 0.00 997.76 199.37 559.17 0.00 340.11 0.00 0.00 1098.65 II III IV V

Assets : Gross Block Depreciation Net Block Pre-operative Exps Current Assets Cash & Bank balance 344.00 49.00 295.00 0.00 453.48 65.92 344.00 89.60 254.40 0.00 498.48 101.44 344.00 123.34 220.66 0.00 543.48 151.87 344.00 151.47 192.53 0.00 588.48 216.75 594.00 174.99 419.01 0.00 633.48 46.16

814.40 0.00

854.32 0.00

916.01 0.00

997.76 0.00

1098.65 0.00

INTEREST SCHEDULE : Rs.In Lacs PARTICULARS BALANCE [-] Ist Yr. Installment BALANCE [-] IIst Yr. Installment BALANCE [-] IIIrd Yr. Installment BALANCE [-] IVth Yr. Installment BALANCE [-] Vth Yr. Installment BALANCE Bank T. L. 258.00 51.60 206.40 51.60 154.80 51.60 103.20 51.60 51.60 51.60 0.00 33.54 INTEREST 13% Bank C. C. 340.11 0.00 340.11 0.00 340.11 0.00 340.11 0.00 340.11 0.00 340.11 44.21 INTEREST 13%

26.83

44.21

20.12

44.21

13.42

44.21

6.71

44.21

DEPRECIATION SCHEDULE PATICULARS OP.BALANCE [-] Ist YR. Depr. W.D.V. [-] IInd Yr. Depr. Building 10% 140.00 14.00 126.00 12.60 113.40 11.34 102.06 10.21 91.85 9.19 82.67 Machinery 20% 175.00 35.00 140.00 28.00 112.00 22.40 89.60 17.92 71.68 14.34 57.34

Rs.In Lacs Total Depr.

49.00

40.60

[-] IIIrd YR. Depr. W.D.V. [-] IVnd Yr. Depr. WDV [-] Vnd Yr. Depr. WDV

33.74

28.13

23.52