Land and building It is estimated that a land of 250sqm is required with 125sqm with buildup area.Cost of land in rural area is calculated as Rs1,25,000/- and the cost of construction is taken as Rs3,25,000/-
It is suggested to install a unit with annual production capacity of 250MT based on 300working days and 1 shift per day.
| No | ITEM | QUANTITY |
PRICE(IN LAKHS) |
| 1 | Avil mill | 2 | 1.50 |
| 2 | Roaster | 2 | 1.00 |
| 3 | Husk fired Furnace | 1 | 0.25 |
| 4 | Paddy soaking tanks | 4 | 0.60 |
| 5 | Sieves | 4 | 0.25 |
| 6 | Sealing machines | 1 | 0.25 |
| TOTAL | 3.85 |
A provision of Rs40,000/- is provided for the working tables furniture and fixtures storage facilities.
Power requirement shall be 15 hp and daily water consuming is Rs750 for 800 liters
| Particulars | Monthly salary(Rs) | Total Monthly salary(Rs) |
| Skilled workers | 3500 | 7000 |
| Semi-skilled Workers | 3000 | 6000 |
| Helpers | 2000 | 8000 |
| Sales man | 3000 | 3000 |
| Total | 24000 |
A total cost of Rs3.85 Lakhs is calculated in this head.
A total cost of Rs3.85 Lakhs is calculated in this head.
A provision of Rs40,000/- is provided to this project
This include some charges like registration, trial run expenses, interest during implementation etc. and are covered with a provision of Rs50,000/-
| Particulars | Period | Margin | Promoters | Bank | Total(Lakhs) |
| Stock of Materials | 1 Month | 30% | 0.30 | 0.80 | 1.10 |
|
Stock of Finished Goods |
1⁄2 months | 25% | 0.14 | 0.41 | 0.55 |
| Receivables | 1 Month | 25% | 0.26 | 1.39 | 1.65 |
| Working Expenses | 1 Month | 100% | 0.20 | 0.20 | |
| Total | 0.90 | 2.60 | 3.50 |
| Item | Amount(Lakhs) |
| Land and Building | 4.50 |
| Machinery | 3.85 |
| Miscellaneous assets | 0.40 |
| Preliminary & Preoperative Expenses | 0.50 |
| Contingencies @10% on fixed assets | 0.84 |
| Working Capital | 3.50 |
| 13.59 |
| Promoters contribution | 4.07 |
| Loan frombank | Term loan6.92 Working capital2.6 | 9.52 |
| Total | 13.59 |
a) Utilities: the annual expenditure towards power and water is estimated to beRs 60000/-
b) Selling expenses: Rice flakes will be sold through retailers. For this commission andtransportation charges will be there. Hence a provision @ 12.5% is provided.
c) Interest on term loan is calculated as 12% per annum assuming a repayment period of 4 years. Interest on working capital is taken as 14% per annum.
d) Depreciation. It is calculated assuming @10% on building and @20% on plant and machinery
| Product | Quantity(MT) | Rate/ price |
Value(In Lakhs) |
| Paddy | 250 | 8900 | 22.25 |
| Spices | 25 | 4000 | 1.0 |
| 23.25 |
| Product | Quantity | Selling price |
Sales(In Lakhs) |
| Roasted flakes | 200 | 12000 | 24.00 |
| Rice Bran | 25 | 2000 | 1.0 |
| 25.0 |
| No | Particulars | Year1 | Year2 | Year3 | Year4 |
| A | Installed capacity | 250MT | |||
| Capacity utilization | 60% | 70% | 80% | 100% | |
| Sales realization | 24.5 | 31.85 | 34 | 38.25 |
| B | Cost of production | Year1 | Year2 | Year3 | Year4 |
| Raw materials | 13.95 | 16.28 | 18.60 | 20.93 | |
| Utilities | 0.36 | 0.42 | 0.42 | 0.54 | |
| Salaries | 2.88 | 2.88 | 2.88 | 3.17 | |
| Stores &Spares | 0.20 | 0.20 | 0.20 | 0.20 | |
| Repairs and Maintenance | 0.30 | 0.30 | 0.30 | 0.30 | |
| Selling expenses | 1.91 | 1.99 | 1.99 | 1.99 | |
| Administrative Expenses | 0.30 | 0.30 | 0.30 | 0.30 | |
| Total | 19.9 | 22.37 | 25.48 | 28.76 |
| C |
Profit before Interest Taxation |
4.6 | 9.48 | 8.52 | 9.49 |
| Interest on Term loan | 0.83 | 0.83 | 0.63 | 0.43 | |
| Interest on working capital | 0.36 | 0.36 | 0.36 | 0.36 | |
| Depreciation (0.32+.77) | 1.09 | 1.09 | 1.09 | 1.09 | |
| Profit before tax | 2.32 | 7.20 | 7.43 | 8.40 | |
| Income tax @10% | 0.23 | 2.28 | 2.08 | 2.52 | |
| Profit after Tax | 2.09 | 5.04 | 5.2 | 5.88 | |
| Cash accruals | 3.18 | 6.13 | 6.29 | 6.97 |
| No | Particulars | Amount (Lakhs) | |
| A | Sales | 25.0 | |
| B | Variable cost | ||
| Raw materials | 13.95 | ||
| Utilities (60%) | 0.22 | ||
| Salaries (60%) | 1.73 | ||
| Stores & Spares | 0.2 | ||
| Selling expenses (60%) | 1.15 | ||
| Admn.expenses (50%) | 0.15 | ||
| Interest on working Capital | 0.36 | ||
| 17.76 | |||
| C | Contribution | ||
| 7.24 | |||
| D | Fixed Cost | ||
| Depreciation | 1.09 | ||
| Utilities | 0.14 | ||
| Salaries | 1.15 | ||
| Selling expenses | 0.76 | ||
| Administrative expenses | 0.15 | ||
| 3.29 | |||
| E | Break-even point ( D/C) | ||
|
45.44% |
Return on investment
Profit after tax/investment
=2.09/13.59*100 =15.37
