Clarification 16.01.09

As per clarification furnished by the company the reply to queries of Risk, EZO dated
15.01.2009 are given below:1) Cost & Means of Finance

Project-I (2006- Corporation Bank)
Total Project Cost
:- Rs. 431.42 Lakhs
Total Debt
:- Rs, 274.80 Lakhs
Promoters Contribution: - Rs. 156.62 Lakhs
Working Capital Limit : - Rs. 128.50 Lakhs
Project-II (2008- Corporation Bank)
Total Project Cost
:- Rs. 467.92 Lakhs
Total Debt
:- Rs, 327.00 Lakhs
Promoters Contribution : - Rs.140.92 Lakhs
Working Capital Limit : -Rs. 235.00 Lakhs
2) Implementation of Projects
In the First Project of 2006, there was no overrun and project was completed welll within time
i.e. 31st December 2006.The Repayment was started in 1 st January 2007 and continuing till date
as per repayment schedule prescribed by Corporation Bank sanction letter No.
PSLRD/CSI/DMS/DGM/109/2006-07 dated 16.09.2006.
The second project was conceived in the month of September 2007 and final proposal with all
documents was submitted to Corporation Bank on 2 nd November 2007. In the Project , the
company had asked for repayment holiday of 7 months from 1 st December 2007 to 30th June 2008
assuming that loan will get sanctioned by 1st December 2007.
But the banks sanction got delayed due to operational problems of Corporation Bank. The first
loan of 2006 was under the powers of Zonal Manager (DGM) having sanctioning powers of Rs.
500.00 Lakhs. As the old plus new loan crossed Rs. 500.00 Lakhs, the proposal compulsorily
went to Head office at Mangalore. After much follow up the company got the sanction on 27 th
February 2008. The 7 months repayment holiday was cut short to only 4 months. As such
monsoon rainy season started form early June, therefore no work was done within the period from
June 2008 to August 2008.
In the meantime promoters revised their original plan and proposed a new boiled plant instead
of a 6 TPH raw plant. Therefore the total loan required a revision with fresh enhancement. In
Corporation Bank things are taking more time as the Zonal manager (DGM) is due to retire in
March 2009, and he is in no mood to recommend approval/revision of the proposal at Head office
level.
As such there is no cost overrun as such and project implementation is going on smoothly.
3)
Details of CWIP
The CWIP of Rs. 240.22 appearing on 31st March 2008 constituted of the following major
items:-
i) Plant & Machinery

: Rs. 204.00 Lakhs
ii) Building- Machinery Stores
: Rs. 14.97 Lakhs.
iii)New Plant Building (Under Construction) : Rs. 21.25 Lakhs.
Total
Rs. 240.22 Lakhs
The CWIP of Rs. 258.47 appearing on 31st December 2008 constituted of the following
major items:i) Plant & Machinery
: Rs. 204.00 Lakhs
ii) Building- Machinery Stores
: Rs. 14.97 Lakhs.
iii)New Plant Building (Under Construction) : Rs. 39.50 Lakhs.
Total
Rs. 258.47 Lakhs
4) Reconciliation of TL disbursed by Corporation Bank and repayments made by the
company for both the term loans separately with 31.03.2007, 31.03.2008 and
31.12.2008 TL outstanding.:
Balance as on
31.03.2008
( Rs. Lakh)
Balance as on
31.12.2008
267.30
204.09
231.96
217.53
201.45
198.27
63.20*
NA
NA
14.42*
NA
153.64
153.64
3.17
Nil
Nil
-2.07#
Balance
as
31.03.2007
TL-1 ( 2006)
As per sanction terms
Actual as per Audited
B/S
Deviation
TL-2 ( 2008)
As per sanction Terms
Actual as per Audited
B/S
Deviation
on
179.97
182.04
The large positive variation of Rs. 63.20 lakh and Rs. 14.42 lakh was due to non-fund based
exposure of Rs. 86.88 lakh ( LC Rs. 60 lakh taken for import of machine & BG-Rs. 26.88
lakh was given to Buhler for part payment of milling machinery cost) as on 31.03.2007. The
amounts were converted to TL as per prevailing market rate on conversion of LC in 4 th quarter
of FY 2007-08. So as can be seen from above, actually the accounts were in order as
payment was more than given in repayment schedule of Corporation Bank as on 31.03.2008.
# Rs. 2.07 lakh is interest applied as on 31.12.2008.
Copies of sanction
information.
letters ( scanned) of Corporation Bank are attached below for your
5) Balance Sheet of the Company as on 31st December 2008.

We are not in position to submit the Balance Sheet as on 31.12.2008 immediately. But we
can submit the same before the disbursement of the loan.
6) MOFPI Subsidy
In the first project in 2006, when our first loan was in process of sanction, we had almost
completed the project. Therefore we did not approach the Ministry as there is precondition that at time
of application the project should not be completely over. As such, as per our information there was a
internal ban of subsidy on Pure Rice Mills from 01/01/2005 till 31/03/2007. Only Rice Mills with
sufficient or substantial value addition were granted subsidy at that time, Therefore we thought it is
fruitless to apply for MOFPI subsidy at that moment of time.
We will be applying for the Subsidy once we get a sanction form your Bank. As such you may be
aware one unit can get MOFPI subsidy once in a lifetime. Therefore in any case, we could not have
availed the subsidy both times in 2006 & 2009.
7) Capacity Calculation:
Old 8 TPH Plant
Capacity of Paddy Processing= 8 Tonnes/ Hour
No. of days working in a year = 270 days
Working Hours in a Day= 16 Hours
Total Capacity= 16 Hours X 8 Tonnes X 270 Days=34,560 Tonnes.
New 6 TPH Plant
Capacity of Paddy Processing= 6 Tonnes/ Hour
No. of days working in a year = 270 days
Working Hours in a Day= 20 Hours
Total Capacity= 20 Hours X 6 Tonnes X 270 Days=32,400 Tonnes.
The old plant will be operative at 60% capacity utilisation from the 3 RD year i.e. 2008-09. But
the new plant can operational at 65% capacity utilisation in its first commercial year i.e. 200910.
INPUT/OUTPUT STATEMENT ( OLD 8 TPH UNIT AFTER CONVERSION)

Product wise detail in MT
Sl No
Particulars
Capacity Utilisation
Total Paddy
Ref. Cap.
utilisation
100%
4TH YEAR 5TH YEAR 6TH YEAR 7TH YEAR 8TH YEAR 9TH YEAR
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
60%
65%
70%
75%
80%
80%
10TH
YEAR
(2015-16)
85%
34560
20,736
22,464
24,192
25,920
27,648
27,648
29,376
Output ( In MTs)
1)
Boiled Rice ( 60 %)
20,736
12,442
13,478
14,515
15,552
16,589
16,589
17,626
2)
Broken Rice (8 %)
2,765
1,659
1,797
1,935
2,074
2,212
2,212
2,350
3)
Rice Bran (4 % )
1,382
829
899
968
1,037
1,106
1,106
1,175
4)
Paddy Husk (10%)
346
2,074
2,246
2,419
2,592
2,765
2,765
2,938
25,229
17,004
18,420
19,837
21,254
22,671
22,671
24,088
INPUT/OUTPUT STATEMENT ( NEW BOILED RICE UNIT: 6 TPH)
Product wise detail in MT
Sl No
Particulars
Reference
Capacity
utilisation
100%
1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR 6TH YEAR
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
65%
65%
70%
75%
80%
7TH
YEAR
2015-16
85%
90%
Input ( In MTs)
1)
Total Paddy*
32400
21060
21060
22680
24300
25920
27540
29160
19,440
3,240
12,215
2,106
12,215
2,106
13,154
2,268
14,094
2,430
15,034
2,592
15,973
2,754
16,913
2,916
Output ( In MTs)
1)
Boiled rice ( 58 %)
2)
Broken Rice (10 %)
3)
Rice Bran (4 % )
1,296
842
842
907
972
1,037
1,102
1,166
Paddy Husk (10%)
3,240
2,106
2,106
2,268
2,430
2,592
2,754
2,916
27,216
17,269
17,269
18,598
19,926
21,254
22,583
23,911
4)
Sales Revenue:
SALES REVENUE STATEMENT ( OLD CONVERTED BOILED UNIT)
Assumptions
SALES REVENUE IN RUPEES LAKHS

Sl
No
Particulars
3RD YEAR
2009-10
4TH YEAR
20010-11
5TH YEAR
2011-12
6TH YEAR
2012-13
7 TH
YEAR
2013-14
8TH
YEAR
2014-15
9 TH YEAR
2015-16
Rate
per MT
( In Rs)
1 Boiled Rice
13500
1,679.62
1,819.58
1,959.55
2,099.52
2,239.49
2,239.49
2,379.46
2 Broken Rice
9250
153.45
166.23
166.23
179.02
191.81
204.60
217.38
12500
103.68
112.32
112.32
120.96
129.60
138.24
146.88
650
13.48
14.60
14.60
15.72
16.85
17.97
19.09
1,950.22
2,112.74
2,252.71
2,415.23
2,577.74
2,600.29
2,762.81
3 Rice Bran
4 Paddy Husk
TOTAL REVENUE
SALES REVENUE STATEMENT ( NEW BOILED UNIT)

SALES REVENUE IN RUPEES LAKHS
Sl
No
Particulars
1ST YEAR
2009-10
2ND YEAR
2010-11
3RD YEAR
2011-12
4TH YEAR
2012-13
5TH YEAR
2013-14
6TH YEAR
2014-15
7TH YEAR
2015-16
60%
65%
70%
70%
75%
75%
80%
Rate per MT(

In Rs)
1 Boiled Rice
250
30.54
30.54
32.89
35.24
37.58
39.93
42.28
9,000
75.82
75.82
81.65
87.48
93.31
99.14
104.98
12,500
263.25
263.25
283.50
303.75
324.00
344.25
364.50
650
113.15
112.25
120.88
129.52
138.15
146.79
155.42
482.75
481.85
518.92
555.98
593.05
630.12
667.18
2432.97
2594.59
2771.63
2971.21
3170.79
3230.41
3429.99
(Custom Milling)*
2 Broken Rice
3 Rice Bran
4 Paddy Husk
TOTAL
Total for Both plant
* In Custom milling only Milling Charges per MT has been considered conservatively though there could be some open sales. By products
sales has been considered like that of 1st Plant. ( figures rounded off where needed)

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Clarification 16.01.09

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As per clarification furnished by the company the reply to queries of Risk, EZO dated

15.01.2009 are given below:1) Cost & Means of Finance

i) Plant & Machinery

letters ( scanned) of Corporation Bank are attached below for your

5) Balance Sheet of the Company as on 31st December 2008.

INPUT/OUTPUT STATEMENT ( OLD 8 TPH UNIT AFTER CONVERSION)

Paddy Husk (10%)

INPUT/OUTPUT STATEMENT ( NEW BOILED RICE UNIT: 6 TPH)

Product wise detail in MT

Broken Rice (10 %)

Paddy Husk (10%)

SALES REVENUE IN RUPEES LAKHS

SALES REVENUE STATEMENT ( NEW BOILED UNIT)

Rate per MT(

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