FINANCIAL ASPECTS

A.FIXED CAPITAL

i) Land and Building
Sl.No Particulars Amount(in Rs)
1 Land Owned
2 Building 2000sqft @Rs.2000per Sqft 400000
3 Over Head Tank 40000
Total 440000

ii) Machinery and Equipments
Sl.NO Particulars Amount(in Rs)
1 Cabinet type hot air drier with blower, motor and other accessories 185000
2 Disintegrator 12" size with 10HP motor and accessories 105000
3 Vibratory sifting machine fitted with GI wire mesh and 2 Hp motor 50000
4 Aluminium Trays 10 nos 15000
5 Platform weighing Balance 10000
6 Polythene sealing machine 2 nos 5000
7 Other misc items like scrapping knives, trolleys etc 10000
8 working tables 20000
9 Lab testing equipments 20000
10 Electrification and installation 50000
11 Essential Office furniture 25000
Total 495000

iii) pre Operative Expenses 25000

TOTAL FIXED CAPITAL (i+ii+iii)

 960000

B.WORKING CAPITAL

i) RAW MATERIALS
1 coconut with husk 75000nos 2 Rs 10 750000
2 Polythene bags 75 kg @ Rs120 per bag 9000
3

Plywood Boxes of 25kg capacity 300nos @ Rs.100 per box

 30000
4 Labels, gums and other packing aids L.S 10000
Total 799000
ii) SALARIES AND WAGES
1 Manager cum Food technologist 1 20000
2 sales man 10000
3 Skilled workers-2 30000
4 Helpers 10 nos 50000
Total 110000
iii) utilities
1 Electricity charges 4000
2 water 300
3 Firewood 7000
Total 11300

iv) Other Contingencies
1 Printing postage, telephone 400
2 Repair and maintenance 1000
3 Transportation 5000
4

Advertisement and publicity

 5000
5 Insurance 1000
6 Misc- 1300
Total 13700

Total working capital(i+ii+iii+iv)

 934000

C.TOTAL CAPITAL INVESTMENT

a) Fixed Capital 960000
b) working Capital 934000
Total 1894000

D.Source of Fund

a Term loan 720000
b working Capital Loan 700500
c Own fund 473500
Total 1894000

E.Total loan required

1420500

F.cost of production

The Capacity utilization in this project has been worked out to be 60%n in the 1st year 70% in the 2nd year
1 Total recurring expenditure 934000
2 Depreciation on Building and tank @5% 1833
3

Depreciation on machinery and equipments @10%

 2917
4 Depreciation on hand tools@15%) 438
5 Depreciation on Office equipments@20% 1000
6 Interest on loan(15%) 17756
Total production cost 957944
Say 958000

G.Turnover (per month) in Rs

1

Desiccated Coconut 7.5 Tone @ Rs.130000 per ton)

 975000
2

Coconut shell 2 MT @35000per mt

 70000
3 Coconut husk 75000 nos @ 40ps) 30000
Total 1075000

H.Net profit per month

117000

I.Annual profit(Before tax)

1404000

J.Net profit Ratio on sales

11%

The above net profit is sufficient for the repayment of loan amount of Rs. 1420500 @ Rs. 16920 per month with interest and also to meet the monthly living expenses of the promoter and his family. The project is found to be technically feasible, economically viable and eligible for being financed. BEP and viable and eligible for being financed. BEP and repayment schedule are shown below

K.BREAK EVEN POINT

I)

FIXED COST
a Depreciation 6188
b Interest 17756
c 40% of salary and wages 44000
d 40% 0f other expenses 5480
Total 73424
2) Net profit 117000
B.E.P FIXED COSTx100 38.56%
(FIXED COST+NET PROFIT)