Sumi (Farm)

SOUGANDIK
A FARM PRODUCTS
SOUGANDIKA FARM PRODUCTS
PROJECT REPORT
Submitted to The Mahatma Gandhi University in partial fulfillment

Of the requirement for the award of
Degree in Commerce
.
BY
SUMI.C.SUKUMARAN
REG NO: 62168
Under the Supervision And Guidance of
Ms. DIVYA DINESH

(Lecturer, Department Of Commerce)
SWAMI SASWATHIKANANDA COLLEGE POOTHOTTA

(Affiliated to Mahatma Gandhi University)
Kottayam, Kerala
2006-2009
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DEPARTMENT OF COMMERCE
SWAMY SASWATHIKANANDA COLLEGE, POOTHOTTA
Kottayam, Kerala
Ms. DIVYA DINESH Date: 15-02-2009

(Lecturer, Department of Commerce)
CERTIFICATE
I, here by Certified that the project report entitled

“SOUGANDIKA FARM PRODUCTS“, is a bonafide piece of work
done by Ms. SUMI.C.SUKUMARAN in partial fulfillment for her
Bachelor Degree in Commerce of Mahatma Gandhi University under my
supervision and guidance.
Ms. DIVYA DINESH
DEPARTMENT OF COMMERCE
Swamy Saswathikanada College Poothotta

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SWAMY SASWATHIKANANDA COLLEGE POOTHOTTA

Kottayam, Kerala.
Mr. Sunil Kumar Kottaran Date: 15-02-2009

(Head of Commerce Department)
CERTIFICATE
Certified that Ms.SUMI.C.SUKUMARAN is a final year

graduate student of this department and she submits this project report in
partial fulfillment of the requirement for the award of Degree in
Commerce.
Mr. Sunil Kumar Kottaran
Forwarded to Mahatma Gandhi University:-
Prof. M.N.Lekshmanan
Principal,
Swami Saswathikananda College, poothotta
College Seal

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DECLARATION
I, hereby declare that the project report entitled

“SOUGANDIKA FARM PRODUCTS” is a bonafide record of work
done by me under the supervision and guidance of Ms.DIVYA DINESH,
Lecturer In Department Of Commerce, Swami Saswathikananda College,
Poothotta in partial fulfillment of the requirement of B.Com Computer
Application (Vocational – model II) of Mahatma Gandhi University
during the year 2006-2009 and this work has not previously formed the
basis for the award of any academic qualification, fellowship or similar
title of any other Universities or Board.
Internal Guide Signature:-

Ms. DIVYA DINESH Name: Sumi.C.Sukumaran
Reg no: 62168
ACKNOWLEDGEMENT
It is my privilege to place a word of gratitude to all persons who

have helped me for the completion of this project. Firstly, I would like to

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express my sincere thanks to my guide Ms. Divya Dinesh (Lecturer of the
Department, Commerce, Swamy Saswathikananda College, poothotta). I
humbly express my heartfelt thanks to prof. M.N. Lekshmanan
(Principal of Swamy Saswathikananda College, poothotta). I also
acknowledge all our teachers and friends, who have helped me to
complete my project report.
I would also like to thank all the respondents who gave me the
necessary data, which was helpful for the successful completion of the
project report. My sincere thanks also to my parents and friends for their
word of encouragement. I thank God Almighty whose wisdom has been
my guiding light.
Date : 15-02-09 Signature

Name: - Sumi.C.Sukumaran
Reg. No: - 62168

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CONTENTS
1. INTRODUCTION
• Entrepreneurship Definition
• Project Meaning
• Characteristics of a project
• Objectives of a Project
• Project Life Cycle
• Project Identification
• Importance of Project Identification
• Project Report
• Scope of Project Report
• Contents of Project Report
• Formulation of Project Report
• Chart for project
2. SCHEME
• Introduction
• Demand and supply of Product
• Project particulars
• Financial Analysis
• Financial Feasibility/Viability
3. CONCLUSION
4. ANNEXURES

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• Product Mix and annual Sales Realisation
• Cost of construction for factory cum office Building
• Summary of cost estimates for Plant and Machinery
• Summary of Miscellaneous Fixed Assets
• Requirement of Raw Materials and percentage of yield
• Requirement of Raw Materials, consumables and packing materials
• Manpower requirement and remuneration
• Computation of working capital
• Term loan repayment schedule
• Projected profitability statement
• Projected Cash Flow statement
• Projected Balance Sheet
• Allocation of pre-operative expenses
• Interest coverage Ratio and debt service coverage Ratio
• Assets coverage Ratio
• Break Even point
• Statement showing MRP/KG

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INTRODUCTION
An entrepreneur possesses a complex personality. Certain
personality charactSummary of Miscellaneous Fixed Assets

eristics make him quite different from an ordinary human being.
Some of the characteristics which constitute his personality are
inborn and some Requirement of Raw Materials and

percentage of yield are acquired in the process of
entrepreneurial traits can be further development in an individual. If
they are present in him to some extent in latent f Requirement of
Raw Materials, consumables and packing rom, by well

structured training and development programmes.
The tematerialsrm entrepreneur first appeared in French language.
In the early 16th century it was applied to persons engaged in
military expeditions. It was only in the 18th century that the word
was used to refer to economic activities. Richard Cantillion, a French
banker applied the word entrepreneur to mean a person who bears
uncertainty and risk.
The concept of entrepreneurship involves
mobilization of resources and utilization of them with a view to
initiate changes in production. It is the intentional activity of a
person or a group of persons, undertaken to initiate, maintain or
enhance profit by the production or supply of goods or services. It is
very often characterized by adventurism, risk-bearing innovation of
new production ideas, identification of new usage of men and
materials etc.
An entrepreneur is one who plays a significant
role in the economic development of a country. The term
“entrepreneur” is derived from the French verb ‘entreprendre’ which
means to “undertake a business venture”. Since the concept of
entrepreneurship is very evasive, it is difficult to define and different
scholars have attempted to define the term entrepreneur differently,

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Basically an ‘entrepreneur’ can be regarded as a person who has the
initiative skill and motivation to set up a business or an enterprise of
his own and who always looks for high achievements. He is a
catalytic of social change and he works for the common good. Till
the year 1800 the concept of entrepreneur was used by French
economists for Government contracts architects, cultivates, these
who brought labour and material at uncertain places and sold the
resultant product at contracted prices and those who risked capital
in manufacturing.
ENTREPRENEURSHIP DEFINITION
According to Cantillon, “an entrepreneur is the agent

who buys factors of production at certain prices in order to combine
them into a product with a view to selling it at uncertain prices in
future”.
According to Joseph .A. Schumpeter defined an
entrepreneur in an advance economy as “an individual who
introduces something new in the economy a method of production
not yet tested by experience in the branch of manufacture
concerned a product with consumers are not yet familiar, a new
source of raw material or of new markets and the like”
According to Peter F. Drucker an entrepreneur is
“one who always searches for change responds to it and exploits it
as an opportunity. Innovation is the specific tool of entrepreneurs,
the means by which they exploit change as an opportunity for a
different business or service”
In the words of E.E Haggen “An entrepreneur is an
economic man who tries to maximize his profit by innovation.
Innovations involve problem solving and the entrepreneur gets
satisfaction from using his capabilities in attacking problems”.

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The above study on who is an entrepreneur makes it
clear than an entrepreneur is an opportunity seeker either in a new
field or in an existing field. For the achievement of his objective to
introduce new ideas, techniques and activities and co-ordinates the
factors of production to carry out the production for meting carry out
production to meet the future demand.
PROJECT – Meaning
The word project is defined as “an approval of capital
investment to develop facilities to provide goods and
services.”
-World Bank
Projects are the building blocks built to meet the enterprises
objectives and as such effective project management is required to
complete the project in scheduled time and within resources
earmarked. The objective may be to create, expand or develop
certain facilities in order to increase the production of goods and
services for the betterment of the community.
A project can be defined as a scientifically evolved work plan
devised to achieve a specific objective within a specified period of
time.
Characteristics of a PROJECT
1. It has clear and specific objective.
2. Project is different from routine business activities.
3. There are time and financial constraints.
4. It requires team work of different experts and their

collaborated and coordinated efforts.

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5. Project involves high degree of risk and uncertainty.
Thus a project is an economic activity with well

defined objectives and having a specific beginning and end.
Objectives of a PROJECT
1. Maximization of stakeholders wealth or market value of equity

shareholders.
2. Increased production of goods and/or services.
3. Enlarging the capacity of existing projects.
4. Increasing the productivity of goods and services.
5. Increasing the internal rate if return at low risk.
6. They must be consistent with organizational plans, policies and

procedures.
7. They must be measurable, tangible and verifiable from time to

time.
8. The project objectives must be in turn with the present or

anticipated resources.
Project Life Cycle

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Three stages in project life cycle are –
1) Pre investment phase
2) The construction phase
3) The normalization phase
1. Pre Investment Phase:
It is the first phase in the life of a project. This phase starts

with the germination of project idea. The idea may come to
one’s mind while visualizing any situation or while trying to
solve a problem. The problem may relate to non utilization of
funds, available capacity and manpower. This phase may
cover objective formulation, demand forecasting, evaluation of
input characteristics, cost benefit analysis and pre investment
appraisal.
2. The construction Phase:
In this second phase of project entrepreneur prepares

specifications for equipment and machinery, initiates
construction activity, conducts trial run and commissioning of
the plant. Resources are invested during this phase to build
the basic assets of the project, which can be used to achieve
project objectives. Here main emphasis is laid on developing
infrastructure for the project.
3. The normalization Phase:
The basic objective of this phase is to produce goods and

sources for which project was set up. Raw materials and other
consumables are produced during this phase. The assets

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created during the second phase are utilized during this phase.
During this phase project gets a clear shape and comes into
existence.
PROJECT IDENTIFICATION
A small scale enterprise originates and
operates within the business environment. An enterprise has to
remain in touch with the business environment for the sake of its
existence, success and failure. Project identification is concerned
with the collection, compilation and analysis of economic data for
the eventual purpose of locating possible opportunities for
investment.
A project idea is guiding document that shows
how to implement a project. It reveals what could be gained by
person who implements the project.
Importance of PROJECT IDENTIFICATION
1. Identified projects become the catalytic agents of economic

development.
2. They initiate the process of overall development in terms of

employment and income generation.
3. They have long term beneficial consequences.
4. Projects provide guidelines for future pattern of activities and

services to be undertaken by an enterprise.

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5. Project identification result in development of basic
infrastructure and environment.
6. Project commitments are normally not revised.
7. Project accelerates the pace of socio cultural development.
PROJECT REPORT
“A project report is a synchronization and synthesis of
relevant data in respect of a project which serves as a guide
to management and record merits and demerits in allocating
resources to production of specific goods & services. It also
known as feasibility report”
A project report is prepared by an expert after

detailed study and analysis of the various aspects of a project. It
gives a complete analysis of the inputs and outputs of a project. A
project report is not only a guide to the promoter but also an
estimation of future requirements, both long & short term
Scope of Project Report

The complete details regarding the following aspects are
contained in a project report:-
1. Economic aspects:
A project report should clarify the justification of the

investment proposal. It should be able to present a market
analysis of the product to be proposed. The market analysis

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should be based on the following issues: (a) How big is the
current market?
(b) How far the market may grow? (C) After allowing a margin
to the prospective market entrants, how far the given project
may be able to capture the future market?
2. Technical aspects:
The project report should give a clear picture of the techniques

required, the machinery and equipments and the sources from
which they can be obtained.
3. Financial aspects:
The project report should reveal the complete information

regarding the sources of financial availability, the contribution
of the entrepreneur etc.
4. Production aspects:
The project report should clarify details regarding the product

selected for production, and the reasons for making such a
selection. The report should also specify whether the product
is export worthy. A complete description about the product
design should also be given in the report.
5. Managerial aspects:
The qualifications and experiences of the persons entrusted

with the project implementation should be detailed in the
report. In case the entrepreneur is carrying out the
management himself, his qualifications that enable him to
undertake such a responsibility should be clarified in the
report.

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CONTENTS OF PROJECT REPORT

The project report should contain the following essential details:
1. General Information : Bio-data of promoters,
industry/product
profile, Organizational structure

product
details.
2. Land Location : Location advantages, lease or free

hold actual
Requirements – value type of soil

hard or
loose or marshy.
3. Building : Plant area, type of construction,
costs, separate
for Administrative blocks and

factory detailed
plan & Estimate along with plant

layout.
4. Plant & machinery : Use of machinery with full description

and
source of supply and cost layout

plan of the
machinery according to the

process-cost of
miscellaneous assets.
5. Manufacturing : Manufacturing process and technical

know

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how.
6. Effluent disposal
7. Utilities : Power-source, availability,

requirements and
CostEstimates of electrification and
contribution to KSEBsource,
availability,
requirements and cost of arranging

the same.
8. Transport : Mode of transport, cost of internal

roads.
9. Communication : Telecommunication, feasibility of

getting cost.
10. Raw Materials : List of raw materials, quantity

requirements,
etc.
11. Manpower : Manpower requirements with annual

wage
bill.
12. Products : Product mix and estimated annual

sales etc.
13. Working Capital : Requirements, arrangements made

with
Commercial banks etc.
14. Cost of production & profitability.

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15. Break-even analysis.
16. Projected balance sheet & cash flow for last few years.
17. Schedule of implementation of project.
18. Repayment schedule.
FORMULATION OF PROJECT REPORT

Project formulation refers to the step by step investigation of
resources and development of project idea. Project formulation is
defined as taking a first look carefully and critically at a project idea
by an entrepreneur to build up an all round beneficial project after
carefully weighing its various components. Here basic aim is to
derive maximum expenditure in shortest possible time.
 General Information.
 Project Description.
 Market Potential.
 Capital cost and sources of finance.
 Assessment of working capital requirements.
 Other financial aspects.
 Economic and social variables.
GENERAL INFORMATION
1. Bio-data of promoters:
- Name and address of the entrepreneur.

- the qualifications, experience and other capabilities of the
entrepreneur.

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2. Industry profile:
 A little reference of analysis of industry, to which the

project belongs.
3. Constitution and organization:
 The constitution and the organizational structure of the

enterprise. In case it is registered with the register of the
firms.
 Whether a registration certificate from directors of

industries/District industries centre has been obtained or
will be applied later on.
4. Product details:
 The utility of the product and the range of products to be

manufactured.
PROJECT DESCRIPTION
1. SITE :
Location whether owned or lease hold land, whether the

site is an approved industrial area? Is it suitable to the type of
enterprise being planned? The open/covered area available
needed should be mentioned. If the location is in residential
area then the copy of no objection certificate from the
Municipal Authorities should be attached.
2. PHYSICAL INFRASTRUCTURE :
i) Raw materials: Whether imported raw material is also

required? If so whether the license has been obtained.

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ii) Skilled labour: Whether skilled labour is available in that
area? If not what arrangement have been made to train
the the labour in various skill.
3. UTILITIES :
i) Power : Inadequate supply of electricity or its high unit

cost in an area may become a major constraints in
running a project.
ii) Fuel : Whether other fuel items like coal, coke oil or gas
are required and if yes, then state their availability
position.
iii) Water : water is an important factor for projects like

brewery, tannery ice plant, soft drinks and chemicals.
4. POLLUTION CONTROL :
Most industrial plants produce waste material or emission that

may cause significant problems. The emission may be of
various types like (a) gaseous(smoke, fumes, etc) (b)
physical(noise, heat, vibration etc) (c) liquid or solid discharges
through pumps and sewers.
5. COMMUNICATION SYSTEM :
Availability of communication facilities, e.g. telephone, telexes

etc. should be stated in the report.
6. TRANSPORT FACILITY :

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The distance over which the basic material inputs will have to
be transported and the available as potential means of
transportation should be stated together with the expected
bottlenecks, if any.
7. OTHER COMMON FACILITIES :
Availability of facilities like machine shops, welding shops and

electrical repairs etc.
8. MANUFACTURING PROCESS :
The details of production and the process involved should be

clearly stated. Also state the period of conversion from raw
materials into finished goods.
9. LIST OF MACHINERY AND EQUIPMENTS :
A complete list of items of machinery and other equipment

indicating their type, size and cost should be furnished.
Sources of supply capital equipment and the construction
services should be given.
10. CAPACITY OF PLANT :
The installed licensed capacity should be stated. Also state

whether the unit run on single, double or triple shift basis.
11. TECHNOLOGY SELECTED :
Is it up-to-date and appropriate? Which other units are using

the same technology and with what results? How is the
required know how proposed to be arranged?
12. BALANCING OF PLANT :

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While installing the stages of production, also state whether
the capacity of various plants at different stages of production
is sufficient. Balancing equipment required at later stage and
the consequent increase in capacity should be assessed.
13. QUALITY CONTROL/TESTING AND INSPECTION :
Whether some systems has been designed to check the

quality of products on a continuous basis? If there is a
possibility of getting them for the products, the fact should be
included in the project report.
14. RESEARCH AND DEVELOPMENT :
Besides the quality control, whether any cell to study

improvement of quality is proposed to be formed in the
enterprise.
MARKET POTENTIAL
The following aspects relating to market potential should
normally be covered in the project report:
DEMAND & SUPPLY POSITION : State the data
regarding total expected demand of the product and present supply
position.
PRICE EXPECTED TO BE REALISED : An estimate of
the price expected should be furnished to assess the margin of
profit.
1. MARKETING STRATEGY :
What strategy for selling the product is proposed to be

followed? Whether any arrangements have been made with
repute suppliers and distributors for lifting the production?
2. AFTER SALES SERVICE :

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In sometimes it is very vital. Even due to loose screw or
snapping of a wire, the customer may find the instrument
either not working properly and without after-sales service.
3. SEASONALITY FACTOR :
Whether the items have seasonal fluctuations in sales? If so,

the arrangements made for warehousing or stocking of the
goods in off-seasons should be stated.
4. TRANSPORTATION :
Whether the unit will depend for the transportation of goods

on public carrier or will it like to own its transport? If own
transport is needed, state the probable cost and the amount of
assistance required.
CAPITAL COSTS AND SOURCES OF FINANCE

An estimate of the various components of capital items
required by the unit should be given in the report. These
components may be the following:
 Land and Building.
 Plant and Machinery.
 Installation costs.
 Other miscellaneous assets like furniture/fixtures, vehicles,

tools, etc.
 Preliminary and preparative expenses.
 Margin for working capital.

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ASSESMENTOFWORKINGCAPITAL REQUIREMENT
Planning for working capital requirements is equally crucial for

an entrepreneur. And in the initial stage itself, the estimate of
working capital requirements should be made and shown along with
the total cost of the project.
OTHER FINANCIAL ASPECTS

One of the objectives of setting- up a project is to earn a
livelihood. Besides the project set-up must be able to retrieve the
investment made within its life cycle. This would be possible only if
the products taken up for production are adequately profitable. A
projected balance sheet and cash flow statement would also have to
be prepared to indicate financial position and requirements at
various stages of the project. Next the break-even analysis must be
presented.
Break-even point {BEP=[F/(S-V)]}*100

Where,
F= Fixed costs
S= Sales projected
V= Variable costs
The break-even point thus calculated will show at what percentage

of projected sales the units will break-even. It is also an idea to
calculate and indicate the following ratios:
1. Profitability ratio = (Net

profits/sales)*100

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2. Return on investments = (net profit/capital
employed)*100
3. Debt equity ratio = Debt/Equity
4. Debt service coverage ratio = Net profit after tax

+ Depreciation
Interest for
one year
---------------------------
-----------------------
Installments +
Interests(for 1 year)
5. Current Ratio = Current

Assets/Current Liabilities
6. Debt Equity Ratio = Debt/Equity

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CHART FOR PROJECT

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PROJECT REPORT
ON
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PRODUCTS

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CONTENTS
 INTRODUCTION
 DEMAND AND SUPPLY OF MEAT AND MEAT

PRODUCTS
 PROJECT PARTICULARS
 FINANCIAL ANALYSIS
 FINANCIAL FEASIBILITY/VIABILITY
 CONCLUSION

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ANNEXURES
Product Mix and annual Sales Realisation
I
Cost of construction for factory cum office Building

II
Summary of cost estimates for Plant and Machinery

III
Summary of Miscellaneous Fixed Assets

IV
Requirement of Raw Materials and percentage of yield

V
Requirement of Raw Materials, consumables and packing

VI materials
Manpower requirement and remuneration
VII
Computation of working capital

VIII
Term loan repayment schedule

IX
Projected profitability statement

X
Projected Cash Flow statement

XI
Projected Balance Sheet

XII
Allocation of pre-operative expenses

XIII

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Interest coverage Ratio and debt service coverage Ratio
XIV
Assets coverage Ratio

XV
Break Even point

XVI
Statement showing MRP/KG

XVII

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PROJECT AT A GLANCE
PROMOTERS : SOUGANDIKA FARM

PRODUCTS PRIVATE LIMITED
CONSTITUTION : PRIVATE LIMITED COMPANY
LOCATION : ADIMALI, IDUKKI DISTRICT
KERALA STATE
PRODUCT MIX : A) FRESH MEAT

B) VALUE ADDED MEAT
PRODUCTS
C) PET FOOD
D) BIO- FERTILIZER
E) VALUE ADDED SPICES
INSTALLED CAPACITY : 1049 TONNES ON SINGLE SHIFT
BASIS OF 8 HOURS
DURATION PER DAY FOR 300
DAYS PER ANNUM
CAPACITY UTILISATION : FIRST YEAR – 60%
SECOND YEAR – 70%
THIRD YEAR ONWARDS – 90%
RAW MATERIALS : BEEF, BUFFALO MEAT, VEAL
MEAT MUTTON, CHICKEN,
PORK, RABBIT MEAT, OTHER
POULTRY & SPICES
TECHNICAL KNOW HOW : OWN KNOW-HOW
EMPLOYMENT POTENTIAL : 59 PERSONS
(IN LAKHS)
COST OF THE PROJECT : LAND 14.25
BUILDING 57.35
PLANT
AND MACHINERY 83.01
MISCELLANEOUS
FIXED ASSESTS 10.18
CONTIGENCIES 14.43

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PRE-OPERATIVE
EXPENSES 12.64
MARGIN MONEY FOR
WORKING CAPITAL 8.14
200.00
MEANS OF FINANCE : SHARE CAPITAL 71.25
UNSCHEMED LOAN 28.75
TERM LOAN FROM
KSIDC 100.00
TOTAL 200.00
DEBT EQUITY RATIO : 1:1
ESTIMATED ANNUAL TURN OVER : 602.83 Lakhs
(AT 100% CAPACITY UTILISATION)

BREAK EVEN POINT : 54.00%
AVERAGE DSCR : 2.30
AVERAGE INTEREST COVERAGE RATIO : 10.26
INTRODUTION
Meat foods have been part of human diet since antiquity. As the
civilization advanced, man understood the importance of meat in human nutrition
.modern science has unraveled the mysteries of the biochemistry and microbiology of
meat. As the people are becoming more scientific in their outlook, the religions taboo
attached to meat is slowly dwindling.
Taking into consideration the existing demand and projection
for Meat and Meat products and Value added spices, the promoters have decided to set
up a unit for Meat and Value added Meat spices, the promoters have decided to set up
a unit for Meat and Value added meat products and value added spices at Adimali in
Idukki District of Kerala.
AS the first phase, the Promoter company of this project has
started production of the following Value added spices and Meat products at rented
premises at Adimali from April 2001:
1) Versatile Meat, Chiken, Mutton and Pork Masalas.

2) Versatile Chilly Chiken,Chiken Fry and Tandoori Chicken Seasoning

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3) Cardamom and Masala tea.

4) Ginger and Spices COFFEE.
5) Dried Beef and Dried buffalo meat.
6) Beef, Buffalo and Pork meat pickles.
The above products are introduced to ‘test market’ and to create
awareness among the products to the company and to create goodwill and also to conduct
the market survey for the products in the second phase. the products are available in
selected supermarket and Market Free Markets in major tows of Kerala under the brand
name of ‘SOUGANDIKA’for spices products and ‘HYRANGE MEATS’ for meat
products under MFPO license .
THE PROMOTERS
The promoters of the project M/S Sougandika Farm Products
Private Limited, is a private limited company incorporated under the Companies Act,
1956, vide certificate of incorporation, number 09-14230.The present Directors of the
company are Fr.M.M Abraham, Mr. Jayesh George, Mrs. Binu Sumesh, Mr. Manjush
Mathew, Mr. Shobin Thomas, Mr Deepu Joseph and Mr. Thomas Paul
Most of the directors of company have several years of experience
in various fields like agriculture, Business etc.
DEMAND AND SUPPLY OF MEAT AND MEAT PRODUCTS
Live stock is emerging to be an important segment in the Indian
agricultural sector from the point of its contribution to the Gross National Product (GNP)
as well as the employment potential in rural areas. Its value of output in 1998 amounted
to Rs.25000 Crores at current prices, and accounted for a 20-25% share in the agriculture
and other allied sector. a survey in rural India bi National sample survey. Organization
(NSSO) of the Government of India highlighted the livestock activities were preferred by
other 90 percent of small cultivation and wage earning farm land households, as a source
of supplementary income. animal husbandry farming system can contribute significantly
(1)Higher and more stable income(2)More opportunities for gainful employment and(3)
Food products.

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Cattle, Buffaloes, Goat, Sheep Poultry and Pigs are the major meat
animals/birds, Duck, Quails, Rabbits, Turkey etc.are minor contributions to meat
production and their numbers are not significant.
MARKET POTENTIAL
There will not be any difficulty in marketing the products
manufactured by the company.Kerala has a population of 3.2 crore and recent survey
shows 90% of population are Non-Vegetarians and per capita consumption of meat is
5.25 kg/annum.
Two important segments of the economy of Kerala also tend to
favour the processed meat industry. Tourism is big business in Kerala.it is estimated that
almost 2 lakhs foreign tourists and more than 45 lakhs domestic tourists visit Kerala
annually. The other significant contribution to the economy is the large number of NRI’s.
All the above factors tend to indicate substantial potential for
dependent of the processed meat market in Kerala.
PROJECT PARTICULARS
PLANT CAPACITY AND CAPACITY UTILISATION
The proposed project will have annual capacity to produce the
following on single shift basis of 8 Hours. duration per day.
PARTICULARS Qty .in .tones
1. Fresh meat 605
2. Value added meat products 180
3. Pet food(by products) 60
4. Bio Fertilizer(By products) 180
5. Value added spices 24
1049
It is assumed that 60% capacity utilization will be achieved during
the first year of operation. The capacity utilization will be expected to increase to 70%
during second year and the operations are assumed to be stabilized at 90% from third
year onwards.

SOUGANDIKA FARM
PRODUCTS
QUANTITY CONTROL
The process and quality control measures adopted will be as per the
code of practices stipulated under the Meat Food Products Order 1973 issued by the
Ministry of Agriculture, Government of India and in accordance with the specification
laid down.
The production will be under strict super supervision of qualified
veterinarians, Food Technologist and Micro Biologist. There will be a well equipped
laboratory as per the International specification to ensure the quality and hygiene of the
products for HACCP and ISO Certification
LOCATION AND LAND
Unit is proposed to be located in a plot measuring 125cents of land in
survey No. 1250 in Mannamkandom village Adimali,in Devikulam Taluk of Idukki
District . It is approximately 110 kilometers from Cochin and 30 km from Munnar, both
major towns. It is readily accessible by road. Workers and staffs for facility can be
recruited from this area and can be trained to operate various plant and machinery.
Power, Telephone and fax facility are also available as also all type of postal services.
Banking and other financial services are also available. The site has close proximity to
the cattle/poultry/small animals flow route from tamilnadu. The site is always from
thickly populated area and it is in a disease free zone. The location is also away from
places of worships and hence objections from public are not anticipated.
The promoter company has already purchased an area of 125 cents of
land with a building of approximately 1500 sq.ft.in survey number 1250 in
Mannamkondom village in Devikulam Taluk at Adimaly,Iddukki District, where the
company is functioning at present. The registration and other formalities of land was
completed on 5/02/2002.
BUILDING
Proposed factory cum administration building will have an area of
approximately 10000 sq.ft. the total cost of civil construction works out to be Rs 57.35

SOUGANDIKA FARM
PRODUCTS
Lakhs including the building purchased at an estimated cost of Rs.6.27 lakhs.The details
of which are in ANNEXURE II.
PLAND AND MACHINERY
The cost of Plant and Machinery has been estimated at 83.01 lakhs,which
comprises Meat Processing Machineries, Pig slaughtering equipments Poultry
Slaughtering Equipment, Large animal slaughtering equipments,thermic fluid heater,
Refrigeration unit, weighting machines and Laboratory equipments. summery of cost for
plant and machinery is given in ANNEXURE III
MISCELLANEOUS FIXED ASSET
The Miscellaneous Fixed Asset required for the project include,
computers, office furniture and fitting,125KVA Diesel Generator set and office
equipments. The total expenditure of Miscellaneous Fixed Asset works out to Rs.10.18
Lakhs.the details are furnished in ANNEXURE IV
RAW MATERIALS,CONSUMABLES AND PACKING MATERIALS
The main raw materials for meat and meat products are beef
meat,buffalow meat,veal meat,mutton,chicken ,pork, rabbit etc..Large animals will be
slaughtered at the factory or meat carcasses will be brought from the approved slaughter
houses located outside Kerala. The carcasses will be transported in insulated truck s
packed with ice of the factory as per norms. The company is planning to buy live birds
and small animals from the farmers of Kerala. Both types of pigs ie exotic and black gigs
are abundantly available in Kerala.
LIVE PIGS
The purchase price of live body cost per kg of exotic pigs at factory are:
45kgs to 60kgs –Rs26/-
60kgs to 90kgs – Rs27/-
90kgs and above -Rs24-25/-
BROILER CHICKEN
The farm rate of Broiler chicken varies from Rs22 to35 and
average annual purchase price price will be Rs.28/-Broiler Chicken are abundantly grown

SOUGANDIKA FARM
PRODUCTS
by the farmers of Kerala and due to the integrated supply chain established with the
growers of other states has given a tremendous boost to production within the state.
TURKEY FOWL/GUINI FOWL/DUCK
These are not grown abundantly in Kerala and the company
process only seasonal sales. The purchase price also varies as per season and demand and
are as follows:
Turkey Fowl Rs100 to 125 per kg.live body weight
Guini Fowl Rs80 to 100 per kg live body weight
Duck Rs25 to 50 per kg live body weight
JAPANESES QUAIL
Quail cultivation is getting popularized in kerala and the purchase
price for birds having a live body weight of150 to180gmsis
Rs10/11 per number.
BOILER RABBIT
Rabbits are grown abundantly in Idukki District and Trichur
District. The live body rate of boiler rabbit is Rs35/- per kg and the skin of rabbit is also
having great demand for the manufacturing of bags, valets etc. The Rabbit meat is treated
as ‘white meat’.
POWER AND FUEL
The total power requirement is estimated at 130KVA for the second
phase. The board of directors are confident of getting the required load sanction from the
K.S.E.B. In addition to this, for meeting power failure the company is planning to install
a 125KVA generator with acoustic enclosure.
The total annuity electricity charges is estimated at Rs. 14 lakhs at 100%
capacity. In addition to electricity, diesel is required for running the 125KVA generator
set and Thermic Fluid heater and the cost for the same is estimated at Rs. 4.00 lakhs per
annum.
WATER

SOUGANDIKA FARM
PRODUCTS
The source of water for this proposed project is from natural resources
and will be stored in the overhead tank of 20000 liter capacity.
The total requirement of water per day is estimated at 10000liters. It is mainly foe
cleaning, sanitation, drinking and refrigeration.
MANPOWER REQUIREMENT
According to the organizational structure envisaged, the managing director
will be in charge of all functions of the unit. There will be a general manager with
veterinary science qualification.
There will be 59 persons employed in the unit including the managing
director. Details of manpower requirements and their remuneration is given in
ANNEXURE VII
LICENSES/REGISTERATION OBTAINED BY THE COMPANY
The company has already obtained the following licenses/registration for
the existing unit:
1)License from Panchayath to Manufacture Food Products.
2)No Objection Certificate For Manufacturing Meat Food Products.
3)MFPO license to produce meat food products.
4)SSI permanent registration.
Application for sanction for building construction from local panchayath
Authorities has already submitted on 6/02/2002.Further sanctions for running the unit
will be objected immediately after the construction of the factory cum office building
FINANCIAL ANALYSIS
The detailed picture of financial analysis is given below:
Cost of the Project
In Lakhs
Particulars Amount
Land 14.25
Building and other civil works 57.35
Plant and machinery 83.01

SOUGANDIKA FARM
PRODUCTS
Miscellaneous fixed assets 10.18
Contingencies 14.43
Pre-Operative expenses 12.64
Margin money for working capital 8.14
TOTAL 200.00
Means of Finance
The total project cost of Rs. 200.00 lakhs is proposed to be financed as follows:
Particulars Amount
Promoters equity 71.25
Unsecured loan from promoters 28.75
Term loan from KSIDC 100.00
TOTAL 200.00
Promoter Equity
The promoters have decided to bring Rs.71.25 lakhs as additional capital for the second
phase of the project.
Unsecured Loan
It is proposed to raise Rs.28.75 lakhs as unsecured interest free loans from the promoters.
Loan from financial institution
It is proposed to raise a term loan of Rs.100.00 lakhs from KSIDC. the loan will be repaid
in 24 quarterly installments immediately after the moratorium of one year. The details are
given in ANNEXURE IX.
Debt Equity Ratio
On the basis of proposed functioning pattern, the debt equity ratio will be 1:1.
FINANCIAL FEASIBILITY/VIABILITY
Cost of Production and Profitability
A detailed profitability for the first five year after completion of the 2nd phase of the
project is attached in ANNEXURE X.
Cash Flow

SOUGANDIKA FARM
PRODUCTS
Cash flow statement for the period of 5 year on the basis of profitability statement is
furnished as ANNEXURE XI. The cash flow is sufficient to ensure the repayment of loan
and to plough back a reasonable amount for the further development/
modernization/Expansion of the unit.
Balance Sheet
Projected balance sheet for first five years is attached as ANNEXURE XII.
Coverage Ratios
On all years the ratios are satisfactory and so the payment of term loans are adequately
covered. The computation of debt service coverage ratio (DSCR)
and Interest coverage ratio (ICR) are attached as ANNEXURE XIV. Asset coverage ratio
(ACR) for various years is attached as ANNEXURE XV.
Average DSCR : 2.30
Average Interest coverage ratio : 10.26
The ACR is satisfactory throughout the currency of the term loan.
Break-even analysis
Based on the 3rd year operation, the unit will break-even at 54.00% of the installed
capacity. The detailed computation is attached as ANNEXURE XVI.
CONCLUSION
M/s Sougandika Farm Products Private Limited proposes to set up a meat and a meat
processing unit as an expansion programme at Adimali. The registration formalities of
the land required for the project has completed on 05/02/2001.
The cost of the project is estimated to be Rs. 200000 lakhs which is proposed to be
financed by means of a term loan of Rs. 100.00 lakhs from KSIDC and Rs. 71.25 lakhs
by way of promoters equity and Rs.28.75 lakhs as unsecured interest free loan from
promoters. The debt equity ratio is 1:1 and the unit will break even at 54% of the installed
capacity in the third year of operation. The project will provide employment to 59
persons including the managing director of the company.
The viability of the project is established and the working is shown in the annexure. The
project will contribute, in addition to duties, a sum of Rs.91.25 lakhs by way of income

SOUGANDIKA FARM
PRODUCTS
tax during the first 5 years of its operations. there is no doubt that this project is going to
be a feather in the cap of the promoters.
In nutshell, considering the market potential and good debt service coverage ratio,
interest coverage ratio, assets coverage ratio, the prospectus for the project are very good.
SO There seems no risk to the promoters as well as to the financial institutions and the
company deserves all support from financial Institutions and other agencies.

SOUGANDIKA FARM
PRODUCTS
ANNEXURES

SOUGANDIKA FARM
PRODUCTS
SOUGANDIKA FARM PRODUCTS PRIVATE LIMITED
PRODUCT MIX AND ANNUAL SALES REALISATION

(100% CAPACITY)
ANNEXURE - I
PRODUCTS QTY/MONTH QTY/ANNUM RATE/TONNE ANNUAL SALES

TONNES TONNES Rs. (Rs. In Lakhs )
Fresh Meat 90.000

Beef 7.500 93.600 40000 36.00
Buffalo 7.800 121.300 42000 39.31
Veal 10.100 146.500 44000 53.37
Pork 12.200 102.000 90000 131.85
Chicken 8.500 25.000 41000 41.82
Mutton 2.100 26.400 90000 22.68
Other Poultry 2.200 15.600 100000 26.40
Value added Meat 2.400 71280 11.12
Products 1.300 1.200 100000 2.40
BEEF PRODUCT
0.200 0.900 68670 0.82
Sausages&Salamis 0.100 1.500 68670 0.62
Meat loaf 0.075 2.400 80000 1.20
Biriyani 0.125 3.000 67340 1.62
Pulavu 0.200 2.400 40000 1.20
Curry 0.250 1.200 105700 2.54
Cutlet Mix 0.200 15.600 208670 2.50
Keema 0.100 2.400 80000 12.48
Pickle 1.300 1.200 108670 2.61
Dried Meat 0.200 0.900 80000 0.96
0.100 1.500 80000 0.72
BUFFALO 0.075 2.400 88670 1.33
PRODUCTS 0.125 3.000 70000 1.68
Sausages 0.200 1.200 42000 1.26
Meat Loaf 0.250 1.800 85840 1.03

SOUGANDIKA FARM
PRODUCTS
Biriyani 0.100 2.400 90000 1.62

Pulavu 0.150 1.200 117800 2.82
Curry 0.200 10.800 226340 2.72
Cutlet Mix 0.100 1.200 139760 15.09
Keema 0.900 1.200 170000 2.04
Meat Balls 0.100 1.200 140000 1.68
Burger 0.100 1.800 140000 2.45
Pickle 0.100 0.600 136340 0.56
Dried Meat 0.150 0.600 93340 .64
CHICKEN 0.050 0.600 106640 1.12
PRODUCTS 0.050 0.600 186640 .88
Sausages/ Salamis 0.050 0.300 146670 .70
Meat Loaf 0.050 33.600 23340 33.54
Biriyani 0.025 2.400 99810 3.36
Pulavu 2.800 0.600 140000 0.60
Curry 0.200 1.200 100000 1.20
Cutlet Mix 0.050 0.600 100000 0.60
Keema 0.100 0.300 100000 0.34
Meat Balls 0.050 0.300 113340 0.34
Burger 0.025 1.200 113340 1.47
Dried Meat 0.025 42.000 122570 44.98
PORK PRODUCTS 0.100 2.400 107110 3.25
Sausages/Salamis 3.500 0.600 13540 0.84
Meat loaf 0.200 0.600 140000 0.84
Biriyani 0.050 0.600 140000 0.88
Curry 0.050 1.200 146670 1.48
Cutlet Mix 0.050 0.600 123340 0.74
Meat Balls 0.100 0.600 123340 0.74
Ham Burger 0.050 0.600 123340 0.66
Pickle 0.050 1.500 110000 1.55
Bacon/Smoked 0.050 0.300 1033340 0.45
MUTTON 0.125 0.600 150000 0.88
PRODUCTS 0.025 0.300 146670 0.45

SOUGANDIKA FARM
PRODUCTS
Sausages 0.050 0.900 150000 1.32

Biriyani 0.025 0.300 146670 0.38
Pulavu 0.075 0.900 126670 1.08
Curry 0.025 1.200 120000 1.44
Keema 0.075 1.500 120000 1.90
Meat balls 0.100 60.000 126670 24.00
Burger 0.125 180.000 40000 18.00
OTHER POULTRY 5.000 24.000 10000 24.00
PRODUCTS 15.000 1049.00 100000 602.83
Biriyani 2.000
Curry
Turkey
Biriyani
Curry
Guinifowl
Biriyani
Curry
Duck
Biriyani
Curry
Rabbit
Biriyani
Curry
PET food
Bio-Fertilizer
Value added spices
COST OF CONSTRUCTION FOR FACTORY CUM OFFICE BUILDING

AN
NEXURE-II
SL DESCRIPTION OF ITEMS UNIT AMOUNT
NO
1 Earth Work Excavation in all soil and 180 m3 12960

SOUGANDIKA FARM
PRODUCTS
depositing on bank with initial lead upto

150cm and lift upto 150cm including watering
and ramming etc.. Complete
2 Filling in basement with ordinary 500m3 47500

soil,watering,ramming etc.. complete
3 Cement concrete 1: 4 : 8 using 40mm 15m3 25140

metal,10cm thick for footing with floated hard
4 Random rubble masonry in 1:6 cement mortar 200m3 195000

for foundation and basement etc.. complete
5 Reinforced cement concrete 1:2:4 ( 1 cement, 70m3 203000

2 sand, 4 broken stone,20mm nominal size)
in slabs including all form work,watering,
curing etc..complete..But excluding
reinforcement.
6 Reinforcement for R.C.C.work,bent,tied and 7000kg 140000

placed in position (plain grill requiring
bending cold)
8 Flooring with cement mortar 1 : 4: 8 using 124024

40mm metal ,10cm thick floated hard and
trowelled smooth 74m
9 Finishing of flooring with ironite mix 700m3 91000
10 Plastering for walls cement mortar 1 : 6 3000m2 168000

12mm thick one coat
11 Supplying, paving white ceramic tiles over a 1.For floor with 180000
bed of 10mm thick cement mortar 1:3 adding 30x 30cm size- 60
necessary pure cement grout for the proper m2
binding of the tiles to mortar including 2. For wall 30x
pointing the joints and closing the voids with 20cm
cement of the colour to match and etc.. size- 450 m2
Complete.
12 Jack wood paneled and framed work for 4m2 8840

SOUGANDIKA FARM
PRODUCTS
frames and shutters of doors etc… complete
13 Aluminium frame door with half glass, 6mm 65m2 67080

thick, with closer etc.. complete
(7 doors)
14 Aluminium frame door with full glass 6mm 10m2 11830

thick ( 5 doors)
15 Sintex doors white colour with frame 18m2 7750
16 Toilet and Urinals fittings Complete : 2500

A. Indian Water Closets 5 Nos 5000
B. European Water Closets 5 Nos 900
C. Urinals 3 Nos 5000
D. Wash basins 5 Nos
17 Supplying and fixing steel windows painted 8400

with a coat of iron primer, in brick work,or
concrete including embedding 7m2
18 White washing 2 coats 3350m2 63650
19 Painting with Acrylic emulsion( Rangoli ) 2000 m2 24200
20 Painting with synthetic enamel paint for each 8m2 2332

succeeding coat for wood work.
21 Rolling shutters with 18 gauge including all 42m2 31500

necessary fittings etc..
22 Aluminum framed windows with 4mm plain 9m2 9288

glass with all necessary fittings etc..
23 Grills for windows with steel 500kg 16250
24 Steel tress works for roofing with angler L.S 1274500

& roofing with aluminium sheet 18 gauge
25 False ceiling with Gypsum board 6’ x 4’ size ( 1000m2 484200

beamless ceiling )
26 Pest control treatment with chemical for entire 1200m2 33600

building area
27 Plumbing and electrification L.S 825000
28 Compound wall, internal roads, gates L.S 680000

SOUGANDIKA FARM
PRODUCTS
Total 5108399

SUMMARY OF COST ESTIMATES FOR PLANT & MACHINERY
ANNEXURE III
SL DESCRIPTION QTY AMOUNT (Rs.

NO In Lakhs )
1 Meat processing Machinery L.S 27048

2 Pig Slaughtering Equipments L.S 17065
3 Poultry Slaughtering Equipments L.S 1.47
4 Large Animal Slaughtering Equipments L.S 1.40
5 Thermic Fluid Heater L.S 3.75
6 Refrigeration Unit L.S 27.00
7 Weighing Machines/ Scales L.S 1.29
8 Laboratary Equipments L.S 2.97
TOTAL 83.01

SOUGANDIKA FARM
PRODUCTS
SUMMARY OF MISCELLANEOUS FIXED ASSESTS

ANNEXURE IV
SL NO ITEM AMOUNT( Rs. In Lakhs )
1 Computer 0.50
2 Furniture & Fittings 2.15
3 125 K V Diesel Generator with acoustic enclosure 6.75
Office Equipments
4 0.78
10.18

SOUGANDIKA FARM
PRODUCTS
DETAILS OF REQUIREMENT OF RAW MATERIALS PER MONTH

AND PERCENTAGE OF YIELD
ANNEXURE V
SL ITEM RAW YIELD OF YIELD OF YIELD OF

NO MATERIALS FRESH MEAT SAUSAGE SLAUGHTER
( CARCASSES MEAT WASTE
LIVEBODY WT) Qty % Qty % Qty %
MT
MT MT MT
1 Beef meat 18 7.5 42 1.98 11 8.46 47
2 Buffalo meat 19 7.8 41 2.09 11 9.12 48
3 Veal meat 23 10.1 44 1.297 5.65 11.58 50.35
4 Pork 25 12.2 49 4.55 18 8.25 33
5 Chicken 13.5 8.5 63 1.22 9 3.78 28
6 Mutton 2.5 2.1 82.5 0.31 12.5 0.125 5
7 Quail,Turkey, 3.5 2.2 62.5 0.19 5.5 1.12 32

Guini Fowl,
Duck
8 Rabbit 0.255 …. …. 0.125 50 0.125 50

SOUGANDIKA FARM
PRODUCTS
REQUIREMENTS OF RAW MATERIALS, CONSUMABLES

AND PACKING MATERIALS
ANNEXURE VI
SL DESCRIPTION QTY/MONT-H QTY/ANNU-M RATE/TONNE AMOUNT
NO TONNES TONNES ( Rs.) ( Rs. Lakhs )
A. Raw Materials 18.0 216.0 16000 34.56

Beef Carcasses 19.0 228.0 16000 36.48
Buffalo Carcasses 23.0 276.0 16000 44.16
Veal Carcasses 25.0 300.0 27000 81.00
Pig 13.5 162.0 28000 45.36
Chicken 2.5 30.0 87500 26.25
Sheep 3.5 42.0 65000 27.30
Other poultry 0.25 3.0 35000 1.05
Rabbits 2.0 24.0 60000 14.40
Spices 17.93
Extenders/Materials 4.85
/ Minerals etc… 4.60
For sausages, 0.97
salami,Cutletmix,
Burger9960kg @
18/-kg
For Biriyani
9900kg @49/-kg
Forcurries,18000kg
@ 25/kg
For keema
7800kg@12.5/kg

SOUGANDIKA FARM
PRODUCTS
e) For dried 6.70

f) meats,Bacon 6.00
447000kg@15/-kg
For Pet food
60000kg@Rs.10/kg
1. TOTAL
2. B. Consumables
Ammonia Gas
351.61
Lubricating Oil,
Grease etc
TOTAL
1.50
0.75
2.25
REQUIREMENTS OF RAW MATERIALS, CONSUMABLES

AND PACKING MATERIALS

SOUGANDIKA FARM
PRODUCTS
SL DESCRIPTION AMOUNT
NO ( Rs. Lakhs )
1 C. Packing materials 2.86

2 For Fresh meat other than poultry 476600kg/Annum in 1.03
3 1 kg Poly pkt2Rs.0.60/pkt 3.80
4 For fresh poultry1283400kg/Annum@Rs.0.80/pkt 2.20
5 For value added meat products other than Biriyani,pulavu & 2.80
6 curry & pickles 152.100kg Annum in 200gm Poly 0.80
7 pkt@Rs.).50/pkt 2.25
8 For biriyani & pulavu 9900kg/annum in 450gm. 0.99
9 Trays@RS.10.00/tray 1.44
For curries- 12000kg in 300gm trays @Rs.7.00/trays 0.16
10 For pickles- 6000kg in 180gm poly jars@Rs.2.40/jar 0.21
For pet food- 60000kg in 1kg pkt@Rs.3.75/pkt
For Bio-Fertilizer-180000kg in 10kg pkt@Rs.5.50/pkt
For value added spices -24000kg .In 100gm pkts@Rs.0.60/pkt
Corrugated paper cartons
For pickles, biriyanis & pulavus,curries
2954 cartons@Rs.5.50
For value added spices and dried meat
2750 cartons@Rs750
TOTAL
18.54

SOUGANDIKA FARM
PRODUCTS
MANPOWER REQUIREMENT & RENUMERATION

ANNEXURE VII
SL DESIGNATION NOS MONTHLY ANNUAL

NO SALARY/EMPLOYEE SALARY
(Rs)
A Administration 1 25000.00 300000.00

1 Managing Director 1 18000.00 216000.00
2 General manger 1 10000.00 120000.00
3 Secretary cum Finance Manager 1 10000.00 120000.00
4 Manager(Procurement & 1 10000.00 120000.00
5 Marketing) 1 6000.00 72000.00
6 Manager ( Production) 1 6000.00 72000.00
7 Micro Biologist 2 3500.00 84000.00
8 Food Technologist 1 3500.00 42000.00
9 Computer 2 3000.00 72000.00
10 operators/Receptionists 7 1500.00 126000.00
11 Accountant 3 1500.00 54000.00
12 Marketing Executive 3000.00
B Securing Guards 22 2500.00
1 Peon,Sweepers,Gardeners 1 2500.00 1398000.00
2 2 2000.00 279600.00
3 TOTAL 4 1500.00 1677600.00
4 Add: Benefits@20% 5 36000.00
5 Production 25 60000.00
General Mechanic 37 120000.00
Electrician 120000.00
Machine Operator 450000.00
Supervisor 786000.00
Semiskilled 157200.00
TOTAL 943200.00
Add: Benefits@20% (9.430Lakhs)
TOTAL SALARY & WAGES( 26.21 Lakhs
Swamy Saswathikanada
A+B) College Poothotta
SOUGANDIKA FARM
PRODUCTS
( Annual Increase of 10% on salary is expected)

COMPUTATION OF WORKING CAPITAL AND MARGIN
MONEY REQUIREMENT
AN
NEXURE VIII
Particulars Raw Consumable Finished Receivable Working Total
& Packing
Materials Goods Expenses
Materials
Period(Months) 0.10 1.00 0.25 0.50 0.50
Margin % 25 25 25 25 100
I Year Working 1.76 1.04 5.77 15.07 2.23 25.87

Capital
Bank 1.32 0.78 4.33 11.30 0.00 17.73

Finance
Margin 0.44 0.26 1.44 3.77 2.23 8.14

money
II Working 2.05 1.21 6.68 17.58 2.50 30.02

Year Capital
Bank 1.54 0.91 5.01 13.19 0.00 20.65

Finance
Margin 0.51 0.30 1.67 4.39 2.50 9.37

money
III Working 2.64 1.60 8.45 22.61 2.93 38.23

Year Capital
Bank 1.98 1.20 6.34 16.96 0.00 26.48

Finance
Margin 0.66 0.40 2.11 5.65 2.93 11.75

money
TERM LOAN REPAYMENT SCHEDULE

SOUGANDIKA FARM
PRODUCTS
ANNEXURE IX
YEAR OPENING REPAYMENT CLOSING INTERST (Rs in

BALANCE @14.5% lakhs)
ANNUAL
INTERST
I YEAR
1st quarter 100.00 …. 100.00 3.63
2nd quarter 100.00 …. 100.00 3.63
3rd quarter 100.00 …. 100.00 3.63
4th quarter 100.00 …. 100.00 3.63 14.50
II YEAR
1st quarter 100.00 4.20 95.80 3.63
2nd quarter 95.80 4.20 91.60 3.47
3rd quarter 91.60 4.20 87.40 3.32
4th quarter 87.40 4.20 83.20 3.17 13.59
III YEAR
1st quarter 83.20 4.20 79.00 3.02
2nd quarter 79.00 7 74.80 2.86
3rd quarter 74.80 7 70.60 2.71
4th quarter 70.60 7 66.40 2.56
IV YEAR
1st quarter 66.40 4.20 62.20 2.41
2nd quarter 62.20 4.20 58.00 2.25
3rd quarter 58.00 4.20 58.80 2.10
4th quarter 53.80 4.20 49.60 1.95 8.71
V YEAR
1st quarter 49.60 4.0 45.40 1.80
2nd quarter 45.40 4.0 41.20 1.65

3rd quarter 41.20 4.0 37.00 1.49
4th quarter 37.00 4.0 32.80 1.34 6.28

SOUGANDIKA FARM
PRODUCTS
PROJECTED PROFITABILITY STATEMENT

ANNEXURE X
(Rs. In Lakhs)
PARTICULARS I YEAR II YEAR III YEAR IV YEAR V YEAR
A.INCOME 361.7 421.98 542.55 542.55

Sales (A) 542.55

SOUGANDIKA FARM
PRODUCTS
246.13 316.45 316.45

B.OPERATING 210.97 14.55 18.71 18.71
COST 12.47 12.60 16.20 316.45
Raw Materials 10.37 11.41 16.20 18.71
Consumable & Packing 3.64 3.64 12.55
materials 10.80 0.91 0.91 3.64
Power & Fuel 9.43 1.37 1.60 0.91 16.20
Direct salary & wages 7.86 7.86 1.66 13.80
Repairs & 3.64 7.86
Maintenance 3.64
Insurance 0.91
Contingency 1.23 0.91
Depreciation 7.86 1.72
7.86
TOTAL ( B)
257.31 297.43 376.78 377.98 379.29
PARTICULARS I YEAR II YEAR III IV V YEAR

YEAR YEAR
C.ADMINISTRATION
EXPENSES
Salary 16.78 18.46 20.31 22.34 24.57
Administration Overhead 10.85 12.66 16.28 16.28 16.28
Marketing & Distribution 45.21 42.20 54.26 54.26 54.26

Overhead

SOUGANDIKA FARM
PRODUCTS
TOTAL (C) 72.84 73.32 90.85 92.88 95.11
D.FINANCIAL
EXPENSES
Interest on Term loan 14.50 13.59 11.15 8.71 6.28
Interest on Working- capital

loan
2.66 3.10 3.97 3.97 3.97
TOTAL(D)
17.16 16.69 15.12 12.68 10.25

SOUGANDIKA FARM
PRODUCTS
E. TOTAL 347.31 387.44 482.75 483.54 484.65

EXPENSES
F. PROFIT 14.39 34.54 59.80 59.90 57.90

( A-E )
G. 0.24 0.24 0.24 0.24 0.23

PRELIMINAR
Y
EXPENSES
written off
H.PROFIT 14.15 34.30 59.56 58.77 57.67

BEFORE TAX
( F- G)
I. INCOME 0.00 0.10 16.44 17.78 18.61

TAX
J.PROFIT 14.15 34.20 43.12 40.99 39.06

AFTER TAX
( H- I)
K.DIVIDEND 0.00 0.00 0.00 0.00 0.00
L.BROUGHT 1.16 0.00 0.00 0.00 0.00

FORWARD
LOSS
M. RETAINED 12.99 34.20 43.12 40.99 39.06

PROFIT
N. 12.99 47.19 90.13 131.30 170.36

CUMULATIVE
PROFIT
SOUGANDIKA FARM
PRODUCTS
PROJECTED CASH FLOW STATEMENT

ANNEXURE XI
(Rs. In Lakhs)
PARTICULARS 0 CONSTRUCTION I II III IV V YEAR
Year PERIOD YEAR YEAR YEAR YEAR
A. CASH IN
FLOWS
Profit before 1.16

tax and 0.00 14.39 34.54 59.80 59.01 57.90
preliminary
expenses
written off
Depreciation 0.00 0.00 7.86 7.86 7.86 7.86 7.86
Equity share 8.75 71.25 0.00 0.00 0.00 0.00 0.00

capital
Unschemed 0.00 28.75 0.00 0.00 0.00 0.00 0.00

Loan
2.06 0.00 0.00 0.00 0.00 0.00 0.00
Term loan 0.00 100.00 0.00 0.00 0.00 0.00 0.00
Increase in 0.00 0.00 17.73 2.92 5.83 0.00 0.00

working
capital
TOTAL(A) 9.65 200.00 39.98 45.32 73.49 66.87 65.76

SOUGANDIKA FARM
PRODUCTS
PARTICULARS ‘0’ CONSTRUCTION I II III IV V

YEAR PERIOD YEAR YEAR YEAR YEAR YEAR
B.CASH
OUTFLOWS
Capital 4.59 191.86 0.00 0.00 0.00 0.00 0.00

Expenditure
Preliminary 1.19 0.00 0.00 0.00 0.00 0.00

Expenses
0.00 0.00 2.06 0.00 0.00 0.00 0.00
Deposits 0.05 0.00 0.00 0.00 0.00 0.00 0.00
Increase in 1.52 0.00 22.12 3.88 7.78 0.00 0.00

working
capital
Repayment of 0.00 0.00 0.00 16.80 16.80 16.80 16.80

term loan
Income tax 0.00 0.00 0.00 0.10 16.44 17.78 18.61
Dividend 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total (B) 7.35 191.86 24.18 20.78 41.02 34.58 35.41
Opening 0.00 2.30 10.44 26.24 50.78 83.25 115.5

balance
Surplus 2.30 8.14 15.80 24.54 32.47 32.29 30.35

( A- B)
Closing 2.30 10.44 26.24 50.78 83.25 115.5 145.8

Balance
PROJECTED BALANCE SHEET

ANNEXURE XII
(Rs. In Lakhs)

SOUGANDIKA FARM
PRODUCTS
PARTICULARS I II YEAR III YEAR IV YEAR V YEAR

YEAR
LIABILITIES 80.00 80.00

Share Capital 28.75 28.75 80.00 80.00 80.00
Unschemed Loan 12.99 47.19 28.75 28.75 28.75
Term loan 100.00 85.20 90.31 131.30 170.36
Working capital loan 17.73 20.65 66.40 49.60 32.80
TOTAL 26.48 26.48 26.48
ASSETS
\Gross Fixed Assets 239.47 259.79 291.94 316.13 338.39
Less:Depreciation
Net fixed Assests 196.45 188.59 180.73 172.87 165.01
Current Assests 7.86 7.86 7.86 7.86 7.86
Deposits
Preliminary expenses net 188.59 180.73 172.87 165.01 157.15
Written off 23.64 27.52 35.30 35.30 35.30
Cash& Bank balance 0.05 0.05 0.05 0.05 0.05

0.95 0.71
26.24 50.78 0.47 0.23 0.00
83.25 115.54 145.89
TOTAL 239.47 259.79 291.94 316.13 338.39
ALLOCATION OF PRE-OPERATIVE EXPENSES

AND CONTIGENCY COST
ANNEXURE XIII
(Rs. In Lakhs)
PARTICULARS BASIC CONTIGENCY PRE-OPERATIVE TOTAL

COST EXPENSES
BUILDING 57.35 5.50 4.81 67.66

SOUGANDIKA FARM
PRODUCTS
PLANT & 83.01 7.95 6.97 97.93

MACHINERY
COMPUTERS 0.50 0.05 0.04 0.59
FURNITURES & 2.15 0.21 0.18 2.54

FITTINGS
OFFICE 0.78 0.07 0.07 0.92

EQUIPMENTS
GENERATOR 6.75 0.65 0.57 7.97
COMPUTATION OF INTEREST COVERAGE RATIO (ICR) AND

DEBT SERVICE COURAGE RATIO (DSCR)
ANNEXUR
E XIV
(Rs.
In Lakhs)
SL PARTICULARS I YEAR II II IV V
NO YEAR YEAR YEAR YEAR
1 Profit after tax 14.15 34.20 43.12 40.99 39.06
2 Interest on term 14.50 13.59 11.15 8.71 6.28

loan
3 Depreciation 7.86 7.86 7.86 7.86 7.86
4 Preliminary 0.24 0.24 0.24 0.24 0.23

Expenses
5 Total 36.75 55.89 62.37 57.80 53.43
6 Interest on term 14.50 13.59 11.15 8.71 6.28

loan
7 Repayment of 0.00 16.80 16.80 16.80 16.80

term loan
8 Total 14.50 30.39 27.95 25.51 23.08
9 Interest coverage 2.53 4.11 5.59 6.64 8.51

ratio 10.26
Average ICR

SOUGANDIKA FARM
PRODUCTS
10 Debit Service 2.53 1.84 2.23 2.31 2.31

coverage ratio 2.30
Average DSCR
ASSESTS COVERAGE RATIO

ANNEXURE XV
(Rs. In Lakhs)
Net Fixed Asset 188.59 180.73 172.87 165.01 157.15

Outstanding term loan 100.00 83.70 66.40 49.60 32.80
Asset cover 1.89 2.17 2.60 3.33 4.79
COMPUTATION OF BREAK EVEN POINT

( BASED ON THIRD YEAR OPERATION)
ANNE
XURE XVI
(R
s. In Lakhs)
I SALES 542.55
II VARIABLE COSTS
1. Raw Materials 316.45
2. Consumables & Packing Materials 18.71
3. Power & Fuel 16.20
4. Interest on working capital loan 3.97
5. Marking Overheads 54.26 409.59
III CONTRIBUTION (I-II) 132.96
IV CASH FIXED OVERHEAD
1. Salary 31.72
2. Repairs & Maintenance 3.64
3. Insurance 0.91
4. Administration Overheads 61.21
5. Interest on term loan 11.15 63.70

SOUGANDIKA FARM
PRODUCTS
V NON CASH FIXED OVERHEADS

1. Depreciation 7.86
2. Preliminary Expenses Written off 0.24 8.10
VI TOTAL FIXED OVERHEADS (IV + V) 71.80

VII BREAK EVEN POINT 54.00%
VIII CASH BREAK EVEN POINT 47.91%
STATEMENT SHOWING MRP/KG . FOR VARIOUS PRODUCTS OF

SEPP LAND COMPETITORS
ANNEXURE XVII
ITEM MPI Farm Danvar EELS Swiss Alka Tuckins SFPPL
Suzanne Food Naturen Beer
1.BEEF Rs Rs Rs Rs Rs Rs Rs Rs
PRODUCTS
Fresh frozen beef 53.00 60.00 52.00

meat
Fresh frozen 58.25 60.00 55.00

buffalo meat
Fresh frozen veal 60.00 65.00 58.00

meat
Beef keema 60.00 62.00 60.00
Meat keema 65.00

( buffalo)
Beef round steak 93.50 90.00
Buffalo round 100.00

steak
Veal round steak 105.00
Tenderloin ( 73.00 70.00

Beef)
Tenderloin 75.00
( Buffalo)

SOUGANDIKA FARM
PRODUCTS
Beef liver 26.00 22.00
Buffalo liver 25.00
Beef sausage 115.0 182.50 130.00 150.00 105.00
Masala sausage 115.0 110.00
Cutlet mix 102.5 98.00
Buffalo sausage 120.00
Meat cutlet mix 105.00

( Beef)
Meat Balls 125.00
Meat burger 135.00
Beef ‘N’ Ham 150.00
Meat ‘N’ Ham 160.00

Beef biriyani 100.00
Beef pulavu 100.00
Beef curry 137.00 120.00

Buffalo meat 120.00
biriyani
Buffalo meat 120.00

pulavu
Buffalo meat 130.00

curry
Beef pickle 178.00 155.55

Buffalo meat 172.20
pickle
Dried Beef 235.00 310.00

Dried buffalo 335.00
meat
2.POULTRY
PRODUCTS
Frozen Fresh 58.00 50.55

Chicken
Chicken 110.00 137.50 366.70 100.00

Drumstick
Chicken Thigh 110.00 125.00 100.00

Chicken Breast 110.00 137.50 100.00
Chicken keema 168.00 160.00
Chicken cutlet 140.00
mix

SOUGANDIKA FARM
PRODUCTS
Chicken 247.50 266.70 240.00 300.00 386.70 230.00

sausage
Chicken salami 247.50 260.00 240.00 237.50 235.00

Chicken ‘N’ 306.00 260.00 500.0 255.00
ham

SOUGANDIKA FARM
PRODUCTS

Chicken meat 330.0 280.00
ball
Chicken pepper 240.00

SOUGANDIKA FARM
sausage
PRODUCTS
Japanese Quails 21/no 18/no

Turkey meat 150.00
Guinifowl meat 150.00
Duck meat 100.00
Chicken 225.0 210.00
biriyani
Quail biriyani 165.00
Turkey biriyani 225.00

Guinifowl 225.00
biryani
Duck biriyani 190.00

Chicken pulavu 210.00
Chicken curry 173.85 200.00
Turkey meat 220.00
curry
Guini fowl 220.00

curry
Japanese quail 163.10 155.00

cuury
Duck curry 190.75 180.00

Chicken burger 245.00 220.00
Dried Chicken 350.00
Wings
3.PORK
PRODUCTS
Pork Bits 82.00 92.00 84.00 80.00
Pork chops 110.00 105.00
Pork 130.00 144.00 125.00

tenderloin
Fresh Ham 120.00 115.00

Cocktail 150.00 185.00 195.00 353.35 145.00
sausage
Pork sausage 143.75 352.00 140.00
Frank ruter 167.50 185.00 195.00 296.00 162.00

sausage
Hotdog sausage 167.50 360.00 162.00
Pork salami 150.00 140.00

Pork salami 167.50 180.00 195.00 320.00 162.00

( sliced)
Bacon 172.50 105.00

SOUGANDIKA FARM
PRODUCTS
Mutton 287.50 200.00

Sausage
Mutton balls 185.00
Mutton burger 185.00
Mutton biriyani 210.00
Mutton pulavu 210.00
mutton curry 230.00 220.00
5.RABBIT
PRODUCTS
Frozen Rabbit 150.00
meat
Rabbit sausage 180.00
Rabbit curry 198.50 190.00
RATIO ANALYSIS
ANNEXURE XVIII
Ratios I Year II Year III Year IV Year V year
Gross Profit 31.6 31.9 32.41 32.2 32.02

Ratio
Net Profit 3.91 8.12 10.9 10.8 10.6

Ratio
Current 2.8 3.79 4.47 5.69 6.8

Ratio
Debt Equity 1.5 1.04 0.71 0.49 0.35

Ratio
Return on 0.152 0.269 0.349 .278 230

Capital
Employed

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SOUGANDIK

SOUGANDIKA FARM PRODUCTS

Submitted to The Mahatma Gandhi University in partial fulfillment

REG NO: 62168

Under the Supervision And Guidance of

Ms. DIVYA DINESH

SWAMI SASWATHIKANANDA COLLEGE POOTHOTTA

Ms. DIVYA DINESH Date: 15-02-2009

I, here by Certified that the project report entitled

Ms. DIVYA DINESH

Swamy Saswathikanada College Poothotta

SWAMY SASWATHIKANANDA COLLEGE POOTHOTTA

Mr. Sunil Kumar Kottaran Date: 15-02-2009

Certified that Ms.SUMI.C.SUKUMARAN is a final year

Mr. Sunil Kumar Kottaran

Forwarded to Mahatma Gandhi University:-

Swamy Saswathikanada College Poothotta

I, hereby declare that the project report entitled

Internal Guide Signature:-

Reg no: 62168

It is my privilege to place a word of gratitude to all persons who

Swamy Saswathikanada College Poothotta

Date : 15-02-09 Signature

Swamy Saswathikanada College Poothotta

• Project Life Cycle

• Importance of Project Identification

• Scope of Project Report

• Contents of Project Report

• Formulation of Project Report

• Chart for project

• Demand and supply of Product

Swamy Saswathikanada College Poothotta

• Product Mix and annual Sales Realisation

• Cost of construction for factory cum office Building

• Summary of cost estimates for Plant and Machinery

• Summary of Miscellaneous Fixed Assets

• Requirement of Raw Materials and percentage of yield

• Requirement of Raw Materials, consumables and packing materials

• Manpower requirement and remuneration

• Computation of working capital

• Term loan repayment schedule

• Projected profitability statement

• Projected Cash Flow statement

• Projected Balance Sheet

• Allocation of pre-operative expenses

• Interest coverage Ratio and debt service coverage Ratio

• Assets coverage Ratio

• Break Even point

• Statement showing MRP/KG

Swamy Saswathikanada College Poothotta

personality charactSummary of Miscellaneous Fixed Assets

inborn and some Requirement of Raw Materials and

they are present in him to some extent in latent f Requirement of

Raw Materials, consumables and packing rom, by well

Swamy Saswathikanada College Poothotta

According to Cantillon, “an entrepreneur is the agent

Swamy Saswathikanada College Poothotta

2. Project is different from routine business activities.

3. There are time and financial constraints.

4. It requires team work of different experts and their

Swamy Saswathikanada College Poothotta

5. Project involves high degree of risk and uncertainty.