Annexure IV - Working Capital and Margin Money

Working Capital Requirement

Per
Mont Per
  h Month         in Lacs.
50 50 Units 2Yr.- 30% 3Yr.-50% 4Yr.-70% 5Yr.-80%
Current Assets : 1unit units -100% Capa. Capa. Capa. Capa. Capa.
Salaries and Wages (50:50) 20 1000 12000 3600 6000 8400 9600
Raw Material 300 15000 180000 54000 90000 126000 144000
Utilities 15 750 9000 2700 4500 6300 7200
Other Expenses 5 250 3000 900 1500 2100 2400
Packing Material 10 500 6000 1800 3000 4200 4800
Work-in-Progress 130 6500 78000 23400 39000 54600 62400
Receivables 30 1500 18000 5400 9000 12600 14400
Cash Requirement 10 500 6000 1800 3000 4200 4800
Finished Goods 200 10000 120000 36000 60000 84000 96000
Total (C.A)       129600 216000 302400 345600
Current Liability :              
Bills Payable 80 4000 48000 14400 24000 33600 38400
Outstanding Expenses 40 2000 24000 7200 12000 16800 19200
Creditors 150 7500 90000 27000 45000 63000 72000
Accrued Benefit 25 1250 15000 4500 7500 10500 12000
Provisions              
Provision for bad and doubtful debts 5 250 3000 900 1500 2100 2400
Provision for taxation 2 100 1200 360 600 840 960
Total (C.L)       54360 90600 126840 144960
Bank Finance (C.A-C.L)       75240 125400 175560 200640
               
 Units @
Product Mix 100% Capa. 2ND Year (25%) 3RD Year (40%) 4TH Year (50%) 5TH Year (60%)    
Price/Uni
    Quantity Amount Quantity Amount Quantity Amount Quantity Amount t Units
Packaged Milk 500 125 1875 200 3000 250 3750 300 4500 15 litres
Paneer 250 62.5 6875 100 11000 125 13750 150 16500 110 kgs.
Peda 300 75 9375 120 15000 150 18750 180 22500 125 kgs.
Butter 500 125 18750 200 30000 250 37500 300 45000 150 kgs.
Lassi 800 200 23000 320 36800 400 46000 480 55200 115 kgs.
Ice-cream 500 125 22500 200 36000 250 45000 300 54000 180 kgs.

Rasagolla 750 187.5 15000 300 24000 375 30000 450 36000 80 kgs.
Milk Cake 500 125 25000 200 40000 250 50000 300 60000 200 kgs.
Skim Milk
Powder 800 200 5000 320 8000 400 10000 480 12000 25 kgs.
UHT Milk 1000 250 4500 400 7200 500 9000 600 10800 18 litres
Flavoured
Milk 800 200 4000 320 6400 400 8000 480 9600 20 litres
Sweet Curd 500 125 6875 200 11000 250 13750 300 16500 55 kgs.
Yoghurt 800 200 12000 320 19200 400 24000 480 28800 60 kgs.
White Butter 300 75 9000 120 14400 150 18000 180 21600 120 kgs.
Infant Milk
Food 750 187.5 3750 300 6000 375 7500 450 9000 20 kgs.
Pure Ghee 800 200 28000 320 44800 400 56000 480 67200 140 kgs.
    2462.5 195500 3940 312800 4925 391000 5910 469200    
Revenues     195500   312800   391000   469200    
Annexure V - Revenue From the Sales :

Annexure VI - Depreciation of assets

Depreciation (Under the Written Down Method)

figures in lacs.
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Land 12500 12500 12500 12500 12500 12500 12500 12500 12500 12500

Buildings *
Opening Balance 5225 4702.5 4232.25 3809.025 3428.1225 3085.31025 2776.779225 2499.101 2249.191 2024.272
Less: Depreciation (@10%) 522.5 470.25 423.225 380.9025 342.81225 308.531025 277.6779225 249.9101 224.9191 202.4272
Closing Balance 4702.5 4232.25 3809.025 3428.1225 3085.31025 2776.77923 2499.101303 2249.191 2024.272 1821.845

Plant and Machinery **

Opening Balance 48950 41607.5 35366.375 30061.4188 25552.2059 21719.375 18461.46879 15692.25 13338.41 11337.65
Less: Depreciation (@15%) 7342.5 6241.125 5304.95625 4509.21281 3832.83089 3257.90626 2769.220318 2353.837 2000.762 1700.647
Closing Balance 41607.5 35366.375 30061.4188 25552.2059 21719.375 18461.4688 15692.24847 13338.41 11337.65 9637.002

Miscellaneous Fixed Assets#

Opening Balance 1430 1215.5 1033.175 878.19875 746.468938 634.498597 539.3238073 458.4252 389.6615 331.2122
Less: Depreciation (@ 15%) 214.5 182.325 154.97625 131.729813 111.970341 95.1747895 80.8985711 68.76379 58.44922 49.68183
Closing Balance 1215.5 1033.175 878.19875 746.468938 634.498597 539.323807 458.4252362 389.6615 331.2122 281.5304

Total Depreciation 8079.5 6893.7 5883.1575 5021.84513 4287.61348 3661.61207 3127.796812 2672.511 2284.13 1952.756
 Depreciation (Under the Straight Down Method)
                  figures in lacs.  
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year Year Year 9 Year
7 8 10
Land 12500 12500 12500 12500 12500 12500 12500 12500 12500 12500
                     
Buildings *                    
Opening Balance 5225 4702.5 4180 3657.5 3135 2612.5 2090 1567.5 1045 522.5
Less: Depreciation (@10%) 522.5 522.5 522.5 522.5 522.5 522.5 522.5 522.5 522.5 522.5
Closing Balance 4702.5 4180 3657.5 3135 2612.5 2090 1567.5 1045 522.5 0
                     
Plant and Machinery **                    
Opening Balance 48950 41607. 26922. 12237. -
5 34265 5 19580 5 4895 2447.5 0 0
Less: Depreciation (@15%) 7342.5 7342.5 7342.5 7342.5 7342.5 7342.5 7342.5 7342.5 7342.5 7342.5
Closing Balance 41607. 26922. 12237. -
5 34265 5 19580 5 4895 2447.5 0 0 0
                     
Miscellaneous Fixed Assets#                    
Opening Balance 1430 1287 1144 1001 858 715 572 429 286 143
Less: Depreciation (@ 10%) 143 143 143 143 143 143 143 143 143 143
Closing Balance 1287 1144 1001 858 715 572 429 286 143 0
                     
Total Depreciation 8008 8008 8008 8008 8008 8008 8008 8008 8008 8008

*Buildings =(4750+475 Contingencies)=5225

**Plant and Machinery= (44500+4450)=48950
# Miscellaneous Fixed
 Assets=(1300+130)=1430

Annexure VII - Interest and Repayment Schedule Of Term Loan :

Repayment Of Interest Schedule of Term Loan
Year Year Year Year Year Year Year Year Year
Particulars Of Term Loans 1 2 3 Year 4 5 Year 6 7 8 9 10 11 Year 12
IDBI                        
Opening Balance 175 175 175 157.5 140 122.5 105 87.5 70 52.5 35 17.5
Amount Repaid 0 0 17.5 17.5 17.5 17.5 17.5 17.5 17.5 17.5 17.5 17.5
Closing Balance 175 175 157.5 140 122.5 105 87.5 70 52.5 35 17.5 0
Interest @ 10% 17.5 17.5 17.5 15.75 14 12.25 10.5 8.75 7 5.25 3.5 1.75
Total Repayment 17.5 17.5 35 33.25 31.5 29.75 28 26.25 24.5 22.75 21 19.25
                         
ICFI                        
Opening Balance 200 200 200 180 160 140 120 100 80 60 40 20
Amount Repaid 0 0 20 20 20 20 20 20 20 20 20 20
Closing Balance 200 200 180 160 140 120 100 80 60 40 20 0
Interest @ 18% 36 36 36 32.4 28.8 25.2 21.6 18 14.4 10.8 7.2 3.6
Total Repayment 36 36 56 52.4 48.8 45.2 41.6 38 34.4 30.8 27.2 23.6
                         
SBI                        
Opening Balance 125 125 125 112.5 100 87.5 75 62.5 50 37.5 25 12.5
Amount Repaid 0 0 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5
Closing Balance 125 125 112.5 100 87.5 75 62.5 50 37.5 25 12.5 0
Interest @ 15% 18.75 18.75 18.75 16.875 15 13.125 11.25 9.375 7.5 5.625 3.75 1.875
Total Repayment 18.75 18.75 31.25 29.375 27.5 25.625 23.75 21.875 20 18.125 16.25 14.375
                         
Canara Bank                        
Opening Balance 50 50 50 45 40 35 30 25 20 15 10 5
Amount Repaid 0 0 5 5 5 5 5 5 5 5 5 5
Closing Balance 50 50 45 40 35 30 25 20 15 10 5 0
Interest @ 18% 9 9 9 8.1 7.2 6.3 5.4 4.5 3.6 2.7 1.8 0.9
 Total Repayment 9 9 14 13.1 12.2 11.3 10.4 9.5 8.6 7.7 6.8 5.9
Total (in lakhs) 8125 81.25 136.25 128.125 120 111.875 103.75 95.625 87.5 79.375 71.25 63.125

Annexure XIIa - Social Cost Of Initial Outlay

Economic Rate Of Return

      in Lakhs.

Items Financial Cost BOC Tradable Value T L R

Land 12500 SCF = 1/1.5      
Buildings 4750 T = 0.5   2375 1188 1188
    L = 0.25        
    R = 0.25        
Plant and Machinery (Imported) 35000 CIF Value 40000      

Plant and Machinery (Indigenous) 10750 CIF Value 10750      

Transportation 50 T= 0.65   25 12.5 5

    L = 0.25        
    R= 0.10        
Technical Know How 1600 SCF= 1.50 2000      
Pre-Operative Expenses 2500 SCF = 1.00 2500      

Working Capital Requirement 5800 CIF Value 5000      

Total 72950   60250 2400 1200 1193

Annexure XIIb - Calculation Of Social Value
Economic Rate Of Return
      in Lakhs.
Items Financial Cost BOC Tradable Value T L R
Land 12500 SCF = 1/1.5      
Buildings 4750 T = 0.5   2375 1188 1188
    L = 0.25        
    R = 0.25        
Plant and Machinery (Imported) 35000 CIF Value 40000      
Plant and Machinery (Indigenous) 10750 CIF Value 10750      
Transportation 50 T= 0.65   25 12.5 5
    L = 0.25        
    R= 0.10        
Technical Know How 1600 SCF= 1.50 2000      
Pre-Operative Expenses 2500 SCF = 1.00 2500      
Working Capital Requirement 5800 CIF Value 5000      
Total 72950   60250 2400 1200 1193

Calculation Of Social Value

    Rs. Lakh
Tradable Value ab inito   60250
Social Cost of tradeable component 1600 1600
Social Cost of labour component 600 600
Social cost of residual component 596.25 596.25
    63046.25
Annexure XIIIa - Social Value Of Inputs Consumed In The Production Process

Item Description Financial Cost BOC   Tradeable Value T L R

Raw Material 14400 SCF 0.8 11520      
Labour 4800 SCF 0.5 2400      
Salary 4800 SCF 0.8 3840      
Repairs and Maintenance 1200 SCF 0.6667 799.992      
Water, Fuel etc. 1000 T 0.5   500 250 250
    L 0.25        
    R 0.25        
Electricity 5000 T 0.71   3550 1250 650
    L 0.13        
    R 0.16        
Other Overheads 2400 SCF 0.6667 1599.984      
Total       20159.976 4050 1500 900

Annexure XIIIb - Calculation Of Social Value

Calculation Of Social Value

Tradable Value ab inito 20159.976 20160
Social Cost of tradeable component 2700 2700
Social Cost of labour component 750 750
Social cost of residual component 450 450
Annexure XIV - Effective Rate Of Protection

Effective Rate Of Production

Input Domestic Prices World Prices
Tradeable Input    
Raw Material 14400 13000
  14400 13000
Non-Tradeable Input    
Power, Fuel and Water 6000 5000
Repairs and Maintenance 1200  
Administrative Overheads 2400  
  9600 5000
     
Total Input Cost 24000 18000
     
Output    
Sales Realization 48300 35000
Value Added 24300 17000
     
Effective Rate of Protection (ERP)(%) 42.94117647  
 Annexure IX (A) -Long Term Point Of View;

Net Cash Flows (in lacs.)

  Year 1 2 3 4 5 6 7 8 9 10

A Investment 100000                  

B Sales   195500 312800 391000 469200 492660 517293 543157.65 570315.53 598831.309

C Operating Cost(exclud. Depre.)   93745 142270 147900 188600 207460 228206 251026.6 276129.26 303742.186

D Depreciation 8079.5 6893.7 5883.1575 5021.8451 4287.61348 3661.61 3127.797 2672.5112 2284.13 1952.75647

E Interest On Term Loan 8125 8125 13625 12812.5 12000 11187.5 10375 9562.5 8750 7937.5

                       

  (C+D+E)   108763.7 161778.158 165734.35 204887.613 222309 241708.8 263261.61 287163.39 313632.442

  Profit before tax   86736.3 151021.843 225265.65 264312.387 270351 275584.2 279896.04 283152.14 285198.867

  Tax (@ 45%)   39031.335 67959.8291 101369.54 118940.574 121658 124012.9 125953.22 127418.46 128339.49

  Profit after tax   47704.965 83062.0134 123896.11 145371.813 148693 151571.3 153942.82 155733.68 156859.377

  Initial Flow 116205                  

Operatiing Flow
  (D+PAT+Interest)   60286.165 98482.6709 137886.71 158059.426 160186 161961.6 163309.08 164142.81 164368.383
                       
-
  Net Cash Flow from long term 116205 60286.165 98482.6709 137886.71 158059.426 160186 161961.6 163309.08 164142.81 164368.383
 Calculation Of Estimated Cash Flows

Year 1 2 3 4 5 6 7 8 9 10
10000
Initial Outlay 0                  

60286.16 98482.67 158059. 164142.8

Net Cash Flows   5 1 137886.7 4 160186 161962 163309.08 1 164368.383

52422.75 74467.04 90370.9 79640. 53658.57

Discounted Cash Flows @15%   2 8 90662.75 9 7 70020.5 61393.933 5 46723.7531

Cumulative Discounted Cash 52422.75 307923.

Flows   2 126889.8 217552.5 5 387564 457585 518978.6 572637.2 619360.95
0.524227 3.07923
BCR   5 1.268898 2.175525 5 3.8756 4.57585 5.189786 5.726372 6.1936095
2.07923
NBCR   -0.475772 0.268898 1.175525 5 2.8756 3.57585 4.189786 4.726372 5.1936095

Internal Rate Of Return 83%                  

Annexure IX(B) - Estimated Cash Flows :

 Annexure X(A) - Equity Point Of View;

Net Cash Flows (in lacs.)

  Year 1 2 3 4 5 6 7 8 9 10
A Investment 100000                  
543157.6
B Sales   195500 312800 391000 469200 492660 517293 5 570315.53 598831.3091
Operating
C Cost(excluding depre.)   93745 142270 147900 188600 207460 228206 251026.6 276129.26 303742.186
5021.84512 3127.79 2672.511
D Depreciation 8079.5 6893.7 5883.1575 5 4287.61348 3661.6121 7 2 2284.13 1952.756469
E Interest On Term Loan 8125 8125 13625 12812.5 12000 11187.5 10375 9562.5 8750 7937.5
                       
108763. 165734.345 241708. 263261.6
  (C+D+E)   7 161778.158 1 204887.613 222309.11 8 1 287163.39 313632.4425
225265.654 275584. 279896.0
  Profit before tax   86736.3 151021.843 9 264312.387 270350.89 2 4 283152.14 285198.8667
39031.3 101369.544 124012. 125953.2
  Tax (@ 45%)   4 67959.8291 7 118940.574 121657.9 9 2 127418.46 128339.49
47704.9 123896.110 151571. 153942.8
F Profit after tax   7 83062.0134 2 145371.813 148692.99 3 2 155733.68 156859.3767
Repayment of Term
G Loan     55 55 55 55 55 55 55 55
  Initial Flow 116205                  
Operatiing Flow (D+F- 54598.6 128862.955 154644. 156560.3
  G)   7 88890.1709 3 149604.426 152299.6 1 3 157962.81 158757.1331
                       
  Net Cash Flow from - 54598.6 88890.1709 128862.955 149604.426 152299.6 154644. 156560.3 157962.81 158757.1331
 Equity 116205 7 3 1 3

Annexure X(B) - Estimated Cash Flows

Calculation Of Estimated Cash Flows

Year 1 2 3 4 5 6 7 8 9 10

Initial Outlay 100000                  

Net Cash Flows   54598.67 88890.1709 128862.9553 149604.426 152299.6 154644.11 156560.333 157962.808 158757.1331
Cumulative Non-
Discounted Cash
Flows   54598.67 143488.836 272351.7912 421956.217 574255.82 728899.9 885460.26 1043423.1 1202180.2
Discounted Cash
Flows @15%   47477.1 67213.7398 84729.48487 85536.8162 75719.8181 66856.916 58856.828 51638.3223 45128.68559
Cumulative
Discounted Cash
Flows   47477.1 114690.84 199420.3247 284957.141 360676.96 427533.9 486390.7 538029.02 583157.7105

BCR   0.474771 1.1469084 1.994203247 2.84957141 3.6067696 4.275339 4.863907 5.3802902 5.831577105

NBCR   -0.52523 0.1469084 0.994203247 1.84957141 2.6067696 3.275339 3.863907 4.3802902 4.831577105
Internal Rate Of
Return 77%                  
 Annexure XI (A) - Total Fund Point Of View

Net Cash Flows (in lacs.)

  Year 1 2 3 4 5 6 7 8 9 10
10000
A Investment 0                  
570315.532
B Sales   195500 312800 391000 469200 492660 517293 543157.65 5 598831.3091
Operating Cost(excluding
C depreciation)   93745 142270 147900 188600 207460 228206 251026.6 276129.26 303742.186
5883.1 5021.8 3661.6 3127.79681 2672.51118 2284.13001
D Depreciation 8079.5 6893.7 6 5 4287.61 1 2 6 5 1952.756469
12812. 11187.
E Interest On Term Loan 8125 8125 13625 5 12000 5 10375 9562.5 8750 7937.5
                       
241708.796 263261.611
  (C+D+E)   108764 161778 165734 204888 222309 8 2 287163.39 313632.4425
86736. 275584.203 279896.038 283152.142
  Profit before tax   3 151022 225266 264312 270351 2 8 5 285198.8667
39031. 67959. 124012.891 125953.217 127418.464
  Tax (@ 45%)   3 8 101370 118941 121658 4 5 1 128339.49
151571.311 153942.821 155733.678
  Profit after tax   47705 83062 123896 145372 148693 8 3 4 156859.3767
11620
  Initial Flow 5                  
Operatiing Flow 62723. 165074.108 166177.832 166767.808
  (D+PAT+Interest)   7 102570 141730 161659 163542 6 5 4 166749.6331
                       
-
Net Cash Flow from long 11620 62723. 165074.108 166177.832 166767.808
  term aspect 5 7 102570 141730 161659 163542 6 5 4 166749.6331

Annexure XI(B) - Estimated Cash Flows

Calculation Of Estimated Cash Flows

Year 1 2 3 4 5 6 7 8 9 10

10000
Initial Outlay 0                  

62723. 10257 14173 16165 16354 165074.108 166177.832 166767.808 166749.633

Net Cash Flows   7 0 0 9 2 6 5 4 1

Discounted Cash 54542. 77557. 93190. 92429. 81309. 62472.4024 54516.6923 47400.6529
Flows @15%   3 8 1 3 3 71366.0925 6 8 2
Cumulative
Discounted Cash 54542. 13210 22529 31771 39902 470394.899 532867.301 634784.646
Flows   3 0 0 9 9 2 6 587383.994 9

0.5454 3.1771 3.9902 4.70394899 5.32867301 6.34784646

BCR   2 1.321 2.2529 9 9 2 6 5.87383994 9
 - 2.1771 2.9902 3.70394899 4.32867301 5.34784646
NBCR   0.4546 0.321 1.2529 9 9 2 6 4.87383994 9

Internal Rate Of
Return 85%                  

Annexure III - Cost of Project

 Project Cost Details

Project Cost Details For1Unit(laks) Total(inlacs)

Land 250 12500
Site Development 40 2000
Buildings 95 4750
Plant and Machinery 890 44500
Miscellaneous Fixed Assets 26 1300
Establishment of private veterinary clinics 50 2500
Technical Know How 32 1600
Preliminary and Pre-Operative Expenses 50 2500
Provision for Contingencies 111.7 5585
Margin Money for working capital 116 5800
Establishment of small dairy farms * 40 2000
  1700.7 85035

*100 animal unit (buffaloes/cross breed cows) for milk production