Bamboo Shoot Processing

PROJECT REPORT
ON
BAMBOO SHOOT PROCESSING
2017
North Eastern Development Finance Corporation Ltd. an ISO 9001:2008 company
Project Report on Bamboo Shoot Processing
LIST OF CHAPTERS
SL. NO. ITEMS PAGE NO.
1. THE PROJECT AT A GLANCE 01
2. INTRODUCTION 02
3. PROJECT DESCRIPTION 03
4. MARKET PROSPECT 04
5. TECHNOLOGICAL PROCESS 05
6. QUALITY CONTROL AND STANDARDS 06
7. CONSUMABLES, POWER AND UTILITY 07
8. INSTALLED CAPACITY 08
9. BASIS AND PRESUMPTIONS 09
10. PROJECT COST ESTIMATES AND 10

MEANS OF FINANCE
11. ECONOMIC VIABILITY AND FINANCIAL 12

ANALYSIS
LIST OF ANNEXURES
A. ESTIMATED COST OF THE PROJECT 14
B. PROPOSED MEANS OF FINANCE 15
C. WORKING CAPITAL ESTIMATES 16
D COST AND PROFITABILITY ESTIMATES 17
E. PROJECTED BALANCE SHEET 18
F. PROJECTED CASH FLOW STATEMENT 19
G. DEBT-SERVICE COVERAGE RATIO 20
H. BREAK-EVEN ANALYSIS 21
I. INTERNAL RATE OF RETURN 22
K. TERM LOAN REPAYMENT SCHEDULE 23

LIST OF APPENDICES
A1. COST OF LAND & BUILDING 24
A2. COST OF PLANT & MACHINERY 25
A3. MISC. FIXED ASSETS 26
A4. PRELIMINARY & PRE-OPERATIVE 27

EXPENSES
C1. MANPOWER REQUIREMENT & COST 28
C2. POWER & UTILITY 29
D1. REPAIR AND MAINTENANCE COST 30
D2. ESTIMATES OF INCOME 31
D3. INTEREST ON WORKING CAPITAL 32
D4. DEPRECIATION SCHEDULE 33

CHAPTER-1
THE PROJECT AT A GLANCE
Sl. No. Particulars Description

A. Project Description
1. Proposed Project Processing and Packaging of Bamboo Shoots
2. Capacity of the Plant/Unit  Bamboo Shoot Pickle : 100 Ton
(At 100% Capacity)  Canned Bamboo Shoot: 150 Ton
Total : 250 Ton
3. Year-wise Capacity Utilisation Yr 01 Yr 02 Yr 03 Yr 04 Yr 05
50% 60% 70% 70% 70%
B. Project Cost
1. Land Own Land/ On Lease
2. Civil Works & Buildings Rs. 10,00,000.00
3. Plant & Machinery Rs. 6,72,000.00
4. Fixed Assets Rs. 2,11,000.00
5. Pre-operative Expenses Rs. 1,89,000.00
6. Contingency & Escalation Rs. 94,000.00
7. Margin for Working Capital Rs. 1,99,000.00
Total Rs. 23,65,000.00
C. Means of Finance
1. Equity @ 40% Rs. 9,46,000.00
2. Loan from Bank @ 60% Rs. 14,19,000.00
Total Rs. 23,65,000.00
D. Financial Benchmarks
1. Break Even Point (at Operating 48.18%
Capacity on Third Year)
2. Average DSCR 1: 2.16
3. Internal Rate of Return 18.00%
E. Basic Assumptions
1. Power Rate Per Unit Rs. 6.00/- Per Unit
2. Interest Rate Term Loan: 8%; WC Loan: 12%
3. Repayment Period 6 Years including moratorium period of 1 Year.
Page | 1
CHAPTER-2
INTRODUCTION
2.1. North-East India is endowed with abundance of natural resources and bamboo is one
such resource. One extensive use of bamboo in this region is the usage of young
shoots as food. Bamboo shoots are the young, edible bamboo plants that have just
emerged from the ground. Bamboo shoots are low in fat and calories but rich in fibre
with about 90% water. Fresh shoots have a crisp and sweet flavour with limited shelf
life and have to be sold immediately. The peak availability period is June to October.
The shoots are usually harvested when they attain the height of 15-16 cm.
2.2. In north-east India, bamboo shoot is consumed either raw or processed because of its
exotic taste and flavour. Many nutritious and active materials-such as vitamins, amino
acids and anti-oxidants such as flavones, phenols and steroids are present in the
bamboo shoots. They are valuable in pharmaceutical and food processing industries
and can be processed into beverages, medicines, additives or health foods.
2.3. Being a lesser-known food product, bamboo shoot processing has potential to be
developed as an innovative and promising enterprise..
2.4. Considering the potential market opportunity of such units, the present detail project
report has been developed. The main objective of such initiative is to productively
utilize the abundantly available resources of the local area and to enable uninterrupted
supply of the products to market throughout the year.
2.5. A detailed analysis has been carried out considering mainly the aspects mentioned
below:
2.5.1. Market and demand of the products.
2.5.2. Requirements of miscellaneous assets for the project.
2.5.3. Estimation of installed capacity and operation pattern.
2.5.4. Consumables, power & utilities and manpower requirements etc.
2.5.5. Estimation of the cost of the project and working capital requirements.
2.5.6. Means of Finance
2.5.7. Estimation of cost of operation, profitability and fund flow statements etc.
2.5.8. Implementation Schedule.
2.5.9. The total Project cost is estimated at Rs. 23.65 Lakhs which includes margin money
for working capital @ 25%.
2.5.10. The various profitability estimates and other financial indicators worked out as given
in the following pages are up to the satisfaction level.
Page | 2
CHAPTER-3
PROJECT DESCRIPTION
3.1. The proposed project is that of setting up of a Bamboo Shoot Processing unit at
suitable location.
3.2. The key products of the proposed project are as follows;
 Bamboo Shoot Pickle
 Canned Bamboo Shoot
3.3. Bamboo shoots are gaining popularity among the people all over the world. Despite
huge scope of value addition, the preparation of various bamboo shoot based products
is traditional, local and unorganized. This calls for development of appropriate
technologies and enterprises for preservation of bamboo shoots in different forms. It
will not only address the economic and ecological aspects related to bamboo but also
the food security and nutritional concerns of the region.
3.4. The proposed project would procure the raw materials locally. After processing, the
products would be supplied to the market through distributors/ wholesalers/retailers.
Page | 3
CHAPTER-4
MARKET PROSPECT
4.1. Bamboo shoots either processed or raw, have a high demand in the markets. There is
a ready market as there are very few processing units whereas demand is increasing.
Apart from individual households, processed bamboo shoots have very good demand
from restaurants, caterers, other caterers etc. Product can be sold through provisional
stores and super markets in consumer packs and to bulk buyers in large packing.
4.2. The NE region being the largest producer of bamboos in India has a bright prospect
for bamboo shoot industry but presently bamboo shoot production is predominantly
for fulfilling the local needs only.
4.3. The local bamboo shoot industry if properly established will not only help in
socioeconomic upliftment of the region but also generate huge income for the
country. But effective marketing strategies should be formulated to extract maximum
profits by making bamboo shoot products available to many potential customers
within and outside the country.
4.4. The proposed business may utilise media such as broadcast, newspapers and also
social network platforms at certain interval of time to introduce the products and also
attract more customers. Placement of the product at strategic outlets and publicity in
local media would boost sales. It may also carry door to door services in the initial
years to introduce the product and attract more customers.
4.5. Marketing plan of the proposed project may include good quality maintenance,
promotional campaign like offering special discounts, referrals, advertisement and
tying up with buying houses.
Page | 4
CHAPTER-5
TECHNOLOGICAL PROCESS
5.1. The process flow diagram is as follows:
BAMBOO SHOOT PICKLE CANNING OF BAMBOO SHOOT
PEELING/WASHING/SLICING PEELING/WASHING/SLICING
DRYING GRADING
CURING IN SALT BRINING AND DRAINING
ADDING SPICES STERILIZATION
MIXING WITH OIL AND VINEGAR COOLING
SEALING/LABELING/PACKING SEALING/LABELING/PACKING
5.2. Bamboo Shoot Pickle: Bamboo shoots Pickle processing starts with thorough
washing followed by peeling off the skin, shredding, slicing and cutting into small
pieces. Next, they are boiled for about 10 min to remove bitterness and unwanted
matter. This is followed by storing in brine solution with 5% salt and 1% citric acid.
After that, necessary ingredients and oil are added and mixed thoroughly before
packaging in suitable jars. The process flow diagram is as follows:
5.3. Canning of Bamboo Shoot: High moisture content of bamboo shoots makes them
prone to growth of undesirable micro-organisms. Process of canning is effective in
abating rancidity and preventing the growth of micro-organisms in bamboo shoots,
thus preventing the products for a longer period of time. Fresh bamboo shoots are cut
from head and tail. After chopping, slicing and grading, the bamboo shoots are boiled,
drained and canned. Salt solution is added to the cans and is kept to evaporate. Cans
are sealed and are processed through retort at a temperature of 100-21230 degree C.
After cooling of cans, labelling and packing is done.
Page | 5
CHAPTER-6
QUALITY CONTROL AND STANDARDS
6.1. The Containers made of plastic materials should conform to the following Indian
Standards Specification, used as appliances or receptacles for packing or storing
whether partly or wholly, food articles namely;
(i) IS : 10146 (Specification for Polyethylene in contact with foodstuffs);

(ii) IS : 10142 (Specification for Styrene Polymers in contact with foodstuffs);
(iii) IS : 10151 (Specification for Polyvinyl Chloride (PVC), in contact with
foodstuffs);
(iv) IS : 10910 (Specification for Polypropylene in contact with foodstuffs);
(v) IS : 11434 (Specification for Ionomer Resins in contact with foodstuffs);
6.2. General packaging requirements for canned products;
(i) All containers shall be securely packed and sealed.

(ii) The exterior of the cans shall be free from major dents, rust, perforations and seam
distortions and
(iii) Cans shall be free from leaks.
6.2. FSSAI LICENSE: FSSAI License is issued by the Food Safety and Standards
Authority of India (FSSAI), Ministry of Family Health & Welfare, Government of
India. Application to commence a food business must be made to the FSSAI in the
prescribed format. Based on the application and supporting documents, FSSAI will
accord approval. The Food Safety and Standards (Licensing and Registration of Food
Businesses) Regulations 2011 introduced to improve the hygiene and quality of food
has brought about tremendous changes in the food industry. As per the Act, no person
shall commence or carry on any food business except under a FSSAI license or
FSSAI registration. Therefore, any food manufacturing or processing or packaging or
distributing entity is now required to obtain a FSSAI License or Registration.
6.3. POLLTUION CONTROL: There is no major pollution problem associated with this
industry except for disposal of waste which should be managed appropriately.
However, waste water resulting from washing of ginger & lime treated ginger water
may be safely dispersed over a large area of land for irrigation purpose. The promoter
is advised to take "No Objection Certificate" from the State Pollution Control Board.
6.4. EFFLUENT DISPOSAL: Disposal of any effluent out of the project unit should be
treated with recycling facility or dumped in such a way that these does not cause
hazard in the vicinity of the site.
6.5. ENERGY CONSERVATION: Proper care should be taken in running the

machineries and equipment to avoid over run and high electricity consumption. The
machineries selected for the plant should be most energy efficient for economical
production.
Page | 6
CHAPTER-7
CONSUMABLES, POWER AND UTILITY
7.1. The major consumables required are as follows;
1. Raw Bamboo Shoot
2. Ingredients like Salt, Mustard Seed, Mustard Oil, Spices, Vinegar and
Preservatives.
3. Packaging Materials
7.2. POWER:
The total requirement of power for the project is 17.42 KW. The total power supply
would be distributed in the following way;
Plant & Machinery - 14.92 KW
General Lighting - 2.50 KW
The details requirement is shown in Appendix-C2.
7.3. UTILITY:
WATER: Constant flow of water would be necessary in the operation of the plant.
Water would be obtained from bore well and can be stored in an overhead tank, from
where it will be supplied to the required areas. Process water should be free of mud
and suspended particles. It should be available at a pressure of 3 Kg/sq.cm.
OTHER UTILITIES: Other utilities includes LPG cylinders and fuel those should be
locally available. Detail expenditure against the head is shown in Appendix- C2.
Page | 7
CHAPTER-8
INSTALLED CAPACITY
8.1. In assessing the proposed plant capacity, due consideration has been given to
technological and financial factors, marketing considerations, availability of
consumables, infrastructure facilities and economic viability. The detailed
requirement of the plant and machineries to achieve the plant capacity is assessed by
the unit technician. While arriving at the requirement of various type of equipment
and machinery required for the unit, due considerations has been given to the
following points.
a) Minimum Wastage
b) High Productivity
c) Maximum flexibility in operation
d) Adequate stock by provision wherever necessary
The installed production capacity of the unit per annum is as follows;
Bamboo Shoot Pickle - 100 Ton

Canned Bamboo Shoot - 150 Ton
For the purpose of carrying out this economic viability of the proposed project, it is
assumed that the plant will operate at following efficiencies during the first 5(Five)
years.
Year 01 02 03 04 05
Capacity 50% 60% 70% 70% 70%

Utilization
Page | 8
CHAPTER-9
BASIS AND PRESUMPTIONS
While deriving figures and projections in this Project report, following Basis and
Presumptions have been made.
9.1. The project is based on a single shift basis and 300 days of working schedule in a
year, working for 8 hours a day, 25 days a month.
9.2. The project cost and other projections etc. have been made on present market
conditions and the sources available within our sources only and therefore it may vary
on account of market fluctuations and with different suppliers and qualities.
9.3. The cost of machinery and equipment/materials indicated refer to a particular make
and the prices are approximate to these prevailing at the time of preparation of this
report.
9.4. Power rate is assumed at Rs.6.00 per unit and monthly fixed rental charges.
9.5. Water would be made available through bore well facility at the project site.
9.6. Manpower requirement for the project has been planned considering the size of the
unit.
9.7. Interest rates considered is 8% on term loan and 12.00% on Working capital loan for
financial assistance.
9.8. For repayment, a period of 6 years is planned with moratorium period of one year.
9.9. Insurance charges have been considered Lump Sum.
9.10. Repair and maintenance have been calculated at reasonably.

9.11. Depreciation shown has been calculated on Straight Line Method.
9.12. Non-refundable deposits, Preparation of detailed project report fees, Architecture fees,
traveling & Convenience amount, Know-how & Engineering fees, Application
processing fees, trial production, fees etc are considered under pre-operative
expenses.
9.13. Break Even Point & Rate of Return is calculated on optimum production condition
findings.
9.14. At the plant site, availability of unskilled labour is not a problem. Skilled and
unskilled labour can be recruited for operating the plant. Initial training will be
required for smooth and efficient running of the plant. It is felt that the skilled
manpower available locally having some experience in operation can be recruited to
satisfy the manpower need.
9.15. Project would be set up at a site that is well connected by road and there is adequate
supply of power and water.
Page | 9
CHAPTER-10
PROJECT COST ESTIMATES AND MEANS OF FINANCE
10.1. TOTAL PROJECT COST:
The Capital cost of the project has been estimated on the basis of installed capacity
assuming 300 working days per annum. The total cost of the Project including margin
for working capital has been estimated at Rs. 23,65,000.00 as detailed in Annexure-
A.
10.2. BUILDING AND CIVIL WORKS:
The approximate cost of civil constructions including Electrification, Water Supply,

Sanitation and Drainage etc will be Rs. 10,00,000.00.
10.3. PLANT & MACHINERY:
The total cost of Plant & Machinery has been estimated at Rs.6,72,000.00as detailed
in Appendix-A2.
10.4. PLANT EXPENDITURE:
The total cost on Plant expenditure includes admissible taxes, transportation,

insurance of the machineries and installation etc. has been included as detailed in
Appendix-A2.
10.5. FIXED ASSET:
The cost of Misc. Fixed Assets has been estimated at around Rs. 2, 11,000.00 as
detailed in Appendix-A3. These include cost of furniture and fixture’s and office
equipment’s.
10.6. PRELIMINARY & PRE-OPERATIVE EXPENDITURE:
An expenditure of Rs. 1, 89,000.00 has been earmarked on this account, as detailed in

Appendix- A4.
10.7. CONTINGENCY AND ESCALATION:
This has been calculated @ 5% on Civil Work, Plant & Machinery and Misc. Fixed
Assets to provide safeguard against escalation of prices or any other unforeseen
expenditure. The total amount works out to Rs. 94,000.00.
10.8. WORKING CAPITAL ESTIMATES:
The details of the Working Capital requirements of the proposed unit have been
shown in Annexure-C. In arriving at the working capital estimates, various
components vis Administrative Expenses/Consumables and Working Expenses have
been taken on the basis of usual norms. The Working Capital requirement is proposed
to be met from project margin money and cash credit loan borrowings from the
financial institution.
Page | 10
10.9. MEANS OF FINANCE:
The Proposed Project Cost of Rs. 23.65 Lakhs would be financed under MSME
development schemes of financial institutions/commercial banks, in the following
manner as shown below.
1. LOAN FROM BANK/FI @ 60% = 14.19 LAKHS
2. PROMOTERS CONSTRIBUTION @ 40% = 9.46 LAKHS
TOTAL = 23.65 LAKHS
10.10. DEBT-EQUITY RATIO:
Based on the above financing pattern, the Debt-Equity ratio of the Project is 1.5:1.
Page | 11
CHAPTER-11
ECONOMIC VIABILITY
AND
FINANCIAL ANALYSIS
11.1. COST OF PRODUCTION:
The cost of production has been estimated annually for the first five years of
operation. The various cost components taken into account are cost of administrative
expenses, consumable stores, utilities, wages and salaries, repairs and maintenance,
insurance, interest rates, taxes etc. depreciation. The detailed cost of production has
been shown in Annexure-D.
11.2. REPAIR & MAINTENANCE:
Cost under Repair and Maintenance expenses have been assessed by charging 1% on
Land & Building, 2% on Machineries and 1.5% on Fixed Assets on first year with
increase of 2% on subsequent years as detailed in Appendix-D1.
11.3. ADMINISTRATIVE EXPENSES:
This has been considered in the cost and profitability statement under other expenses
etc.
11.4. SELLING EXPENSES:
This has been considered in the cost and profitability statement under other expenses
etc.
11.5. DEPRECIATION:
In calculating the cost of operation, depreciation has been calculated under straight
line method after absorbing the pre-operative and contingencies expenses as shown in
Appendix-D4.
11.6. FINANCIAL CHARGES:
The interest on proposed term loan amount of Rs. 14.19 Lakhs has been calculated@
8% being the rate of interest. The interest calculation for various years after
considering the repayments due in respective years has been shown in Appendix-D3.
11.7. SALES REALISATION:
The total annual income of the Project is shown in Appendix-D2. Based on 70%
capacity utilisation, total turnover is estimated at Rs. 87.50 Lakhs on third year, the
sale for other years are estimated at different capacity utilisation as shown in
Appendix-D2.
Page | 12
11.8. NET PROFIT:
The proposed project is expected to generate profit from the first year of operation
itself and will gradually increase with increase in capacity utilisation.
11.9. INTERNAL ACCRUALS:
The net profit after tax with depreciation added back would make up sufficient
internal accruals to meet the term loan, working capital loan repayment obligations
without any liquidity problems.
11.10. FINANCIAL ANALYSIS:
The break-even point of the proposed project is 48.18%at 70% operating capacity on
third year as shown in Annexure-F.
The DSCR of the project has been worked out in Annexure-H with an average of
1:2.16, which is considered quite satisfactory to meet the repayment and interest
obligations in respect of the term loan.
The internal rate of return of the project works out to 18.00 %, which is
satisfactory.
Page | 13
ANNEXURE-A
ESTIMATED COST OF THE PROJECT
Particulars Amount (Rs. lacs)

Land & Site development Own Land/ On Lease
Building & Civil Works 10.00
Plant & Machinery 6.72
Misc. Fixed Assets 2.11
Preliminary & Pre-operative Expenses 1.89
Contingencies & Escalation @ 5% 0.94
Working Capital 1.99
TOTAL 23.65
Total Project Cost :Rs. 23, 65, 000.00
(Rupees Twenty Three Lakhs Sixty Five Thousand Only).
Page | 14
ANNEXURE-B
PROPOSED MEANS OF FINANCE
(Rs. in lacs)
Particulars Percent Amount
EQUITY
A. Equity from Promoters 40% 9.46
B. Subsidy from Central/ State Govt. -
DEBT
Term Loan from Banks/ FIs 60% 14.19
TOTAL 100% 23.65
Total Project Cost :Rs. 23, 65, 000.00
(Rupees Twenty Three Lakhs Sixty Five Thousand Only).
Page | 15
ANNEXURE-C
WORKING CAPITAL ESTIMATES
(Rs. in lacs)
Period Total Current Assets
(Days) Year 1 Year 2 Year 3
Raw Materials 15 1.87 2.24 2.61
Power & Utility 30 0.12 0.15 0.17
Salary 30 0.95 0.96 0.96
Finished Goods 15 2.44 2.83 3.23
Receivables 15 2.57 3.08 3.60
Total 7.95 9.26 10.57
Working Capital Margin in Year 1

(25%) 1.99
Page | 16
ANNEXURE-D
COST AND PROFITABILITY ESTIMATES
(Rs. in lacs)
Particulars Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6
A. INCOME
Production Capacity (Ton/ annum) 250 250 250 250 250 250
Capacity utilisation 50% 60% 70% 70% 70% 70%
Production/ annum at capacity utilisation 125 150 175 175 175 175
Total income/ annum 62.50 75.00 87.50 87.50 87.50 87.50
B. OPERATING EXPENSES
Raw Materials 45.40 54.48 63.56 63.56 63.56 63.56
Power & Utility 1.49 1.79 2.09 2.09 2.09 2.09
Salary 11.58 11.64 11.70 11.75 11.81 11.87
Repair & Maintenance 0.28 0.28 0.29 0.30 0.30 0.31
Other Expenses 0.63 0.75 0.88 0.88 0.88 0.88
Total Operating Expenses 59.38 68.95 78.51 78.58 78.64 78.71
Operating profit 3.12 6.05 8.99 8.92 8.86 8.79
C. FINANCIAL EXPENSES
Depreciation 0.99 0.99 0.99 0.99 0.99 0.99
Interest on Term Loan 1.14 1.03 0.80 0.58 0.35 0.12
Interest on Working Capital Loan 0.72 0.83 0.95 0.95 0.95 0.95
Net Profit 0.28 3.20 6.24 6.40 6.57 6.73
Net Cash Accruals 1.27 4.19 7.23 7.39 7.56 7.72
Principal Repayment 0.00 2.84 2.84 2.84 2.84 2.84
Page | 17
ANNEXURE-E
PROJECTED BALANCE SHEET
(Rs. in lacs)
Particulars Impl. Period Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6
LIABILITIES
Promoters Capital
Promoters capital 9.46 9.46 9.46 9.46 9.46 9.46 9.46
Profit from P&L 0.28 3.48 9.72 16.13 22.69 29.42
Sub Total 9.46 9.74 12.94 19.18 25.58 32.15 38.88
Secured Loan
Term loan 14.19 14.19 11.35 8.51 5.68 2.84 0.00
CC limit from Banks 5.96 6.94 7.93 7.93 7.93 7.93
Sub Total 14.19 20.15 18.29 16.44 13.60 10.76 7.93
Unsecured Loan
Current Liabilities
Total of Liabilities 23.65 29.89 31.23 35.62 39.19 42.91 46.80
ASSETS
Gross Fixed Block 19.77 19.77 19.77 19.77 19.77 19.77 19.77
Sub Total (a) 19.77 19.77 19.77 19.77 19.77 19.77 19.77
Depreciation
Cum. Depreciation 0.99 1.98 2.97 3.96 4.95 5.94
Sub Total (b) 0.00 0.99 1.98 2.97 3.96 4.95 5.94
Net Fixed Asset Block (a-b) 19.77 18.78 17.79 16.80 15.81 14.82 13.83
Current Asset Block
W.I.P.(Inventories)
Cash & Bank balance 1.99 1.46 2.67 6.93 11.67 16.58 21.65
Other Current Assets 7.95 9.26 10.57 10.57 10.57 10.57
Sub-Total 1.99 9.41 11.93 17.50 22.24 27.15 32.22
Preliminary expenses not written off 1.89 1.70 1.51 1.32 1.13 0.94 0.75
Total of Assets 23.65 29.89 31.23 35.62 39.19 42.91 46.80
Page | 18
ANNEXURE-F
PROJECTED CASHFLOW STATEMENT
(Rs. in lacs)
Particulars Impl. Period Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6
SOURCES OF FUND
Profit after tax with depreciation &

interest added back 3.12 6.05 8.99 8.92 8.86 8.79
Increase in Promoters capital 9.46
Increase in un-secured loan
Increase in Term Loan 14.19
Increase in Bank borrowing (WC) 5.96 0.98 0.98
Prelim. exp. W/off 0.19 0.19 0.19 0.19 0.19 0.19
Decrease in WIP(inventory)
Decrease in Other current assets
Sub Total 23.65 9.27 7.22 10.16 9.11 9.05 8.98
USES OF FUND
Preliminary expenses 1.89
Capital expenditure 19.77
Increase in WIP
Repayment of Term Loan 0.00 2.84 2.84 2.84 2.84 2.84
Decrease in unsecured loan
Interest payment
Term Loan 1.14 1.03 0.80 0.58 0.35 0.12
Other bank(W.C) 0.72 0.83 0.95 0.95 0.95 0.95
Increase in Working capital 7.95 1.31 1.31
Decrease in Other current liabilities
Sub Total 21.66 9.80 6.01 5.90 4.37 4.14 3.91
Opening cash/bank balance 0.00 1.99 1.46 2.67 6.93 11.67 16.58
Surplus/Deficit 1.99 -0.53 1.21 4.25 4.74 4.91 5.07
Closing cash/bank balance 1.99 1.46 2.67 6.93 11.67 16.58 21.65
Page | 19
ANNEXURE-G
DEBT-SERVICE COVERAGE RATIO
(Rs. in lacs)
Year 1 2 3 4 5 6
Profit After Tax (Net Profit) 0.28 3.20 6.24 6.40 6.57 6.73
Depreciation 0.99 0.99 0.99 0.99 0.99 0.99
Interest 1.14 1.03 0.80 0.58 0.35 0.12
Total 2.41 5.22 8.04 7.97 7.91 7.84
Interest 1.14 1.03 0.80 0.58 0.35 0.12
Loan Repayment 0.00 2.84 2.84 2.84 2.84 2.84
Total 1.14 3.87 3.64 3.41 3.19 2.96
DSCR 2.12 1.35 2.21 2.33 2.48 2.65
Average DSCR = 2.16
Page | 20
ANNEXURE-H
BREAK-EVEN ANALAYSIS
(Rs. in lacs)
Year 1 2 3
A. Net sales (Rs. lac) 62.50 75.00 87.50

B. Variable cost
Raw Materials 45.40 54.48 63.56
Power & Utility 1.49 1.79 2.09
Other Expenses 0.63 0.75 0.88
Interest on Working Capital Loan 0.72 0.83 0.95
Total variable cost 48.23 57.86 67.48
C. Contribution (A-B) 14.27 17.14 20.02
D. Fixed & Semi-fixed Costs
Salary 11.58 11.64 11.70
Repair & maintenance 0.28 0.28 0.29
Interest on Term Loan 1.14 1.03 0.80
Depreciation 0.99 0.99 0.99
Total fixed cost 13.98 13.94 13.78
E. BREAKEVEN POINT 98.03% 81.34% 68.83%
F. BEP at operating capacity 49.02% 48.80% 48.18%
G. Cash BEP 45.55% 45.34% 44.72%
Page | 21
ANNEXURE-I
INTERNAL RATE OF RETURN
(Rs. in lacs)
Year 0 1 2 3 4 5 6
CASH OUTFLOW
Capital Expenditure 19.77 0.00 0.00 0.00 0.00 0.00 0.00

Working Capital 0.00 7.95 1.31 1.31 0.00 0.00 0.00
Total (A) 19.77 7.95 1.31 1.31 0.00 0.00 0.00
CASH INFLOW
Profit After Tax 0.28 3.20 6.24 6.40 6.57 6.73
Add: Depreciation 0.99 0.99 0.99 0.99 0.99 0.99
Add: Interest 1.14 1.03 0.80 0.58 0.35 0.12
Add: Salvage Value
Total (B) 0.00 2.41 5.22 8.04 7.97 7.91 7.84
NET FLOW (B-A) -19.77 -5.54 3.91 6.73 7.97 7.91 7.84
IRR = 19%
Page | 22
ANNEXURE-J
TERM LOAN REPAYMENT SCHEDULE
(Rs in lacs)
Month Year 1 2 3 4 5 6
Month 1 Opening balance 14.19 14.19 11.35 8.51 5.68 2.84
Repayment 0.00 0.24 0.24 0.24 0.24 0.24
Interest (8%) 0.09 0.09 0.08 0.06 0.04 0.02
Closing balance 14.19 13.95 11.11 8.28 5.44 2.60
Repayment 0.00 0.24 0.24 0.24 0.24 0.24
Interest 0.09 0.09 0.07 0.06 0.04 0.02
Closing balance 14.19 13.72 10.88 8.04 5.20 2.36
Repayment 0.00 0.24 0.24 0.24 0.24 0.24
Interest 0.09 0.09 0.07 0.05 0.03 0.02
Closing balance 14.19 13.48 10.64 7.80 4.97 2.13
Repayment 0.00 0.24 0.24 0.24 0.24 0.24
Interest 0.09 0.09 0.07 0.05 0.03 0.01
Closing balance 14.19 13.24 10.40 7.57 4.73 1.89
Repayment 0.00 0.24 0.24 0.24 0.24 0.24
Interest 0.09 0.09 0.07 0.05 0.03 0.01
Closing balance 14.19 13.01 10.17 7.33 4.49 1.66
Repayment 0.00 0.24 0.24 0.24 0.24 0.24
Interest 0.09 0.09 0.07 0.05 0.03 0.01
Closing balance 14.19 12.77 9.93 7.09 4.26 1.42
Repayment 0.00 0.24 0.24 0.24 0.24 0.24
Interest 0.09 0.09 0.07 0.05 0.03 0.01
Closing balance 14.19 12.53 9.70 6.86 4.02 1.18
Repayment 0.00 0.24 0.24 0.24 0.24 0.24
Interest 0.09 0.08 0.06 0.05 0.03 0.01
Closing balance 14.19 12.30 9.46 6.62 3.78 0.95
Repayment 0.00 0.24 0.24 0.24 0.24 0.24
Interest 0.09 0.08 0.06 0.04 0.03 0.01
Closing balance 14.19 12.06 9.22 6.38 3.55 0.71
Repayment 0.00 0.24 0.24 0.24 0.24 0.24
Interest 0.09 0.08 0.06 0.04 0.02 0.00
Closing balance 14.19 11.82 8.99 6.15 3.31 0.47
Repayment 0.00 0.24 0.24 0.24 0.24 0.24
Interest 0.09 0.08 0.06 0.04 0.02 0.00
Closing balance 14.19 11.59 8.75 5.91 3.07 0.24
Repayment 0.00 0.24 0.24 0.24 0.24 0.24
Interest 0.09 0.08 0.06 0.04 0.02 0.00
Closing balance 14.19 11.35 8.51 5.68 2.84 0.00
Principal Repayment 0.00 2.84 2.84 2.84 2.84 2.84
Interest 1.14 1.03 0.80 0.58 0.35 0.12
Page | 23
APPENDIX-A1
COST OF LAND AND BUILDING
Covered Area – 2,000 Square Feet
Particulars Area (Sqft) Rate (Rs) Amount (Rs)

Work Shed, Store House cum Office 2000 400 800000
Sub total 800000
Add: Electrification, Water supply, Sanitation and Drainage @ 25% 200000
TOTAL 1000000
Say (Rs. in lacs) 10.00
Page | 24
APPENDIX-A2
COST OF PLANT AND MACHINERY
Particulars Qty Amount (Rs)

Washing Tanks of 1000 Litre Capacity 2 514000
Slicing Machine 1
Boiler with accessories 1
Mixer/Grinder 2
Bottle Washing and Filling Machine 1
Cap Sealing Machine 1
Automatic Form Fill and Sealing Machine 1
Burner Stove 1
SS Utensils, Weighing Scales, Hand Gloves, Miscellaneous LS 72000
Tools and Equipment
Testing Equipment LS 25000
Sub total 611000
Add: Taxes, transportation and installation etc @ 10% 61100
TOTAL 672100
Page | 25
APPENDIX-A3
MISCELLANEOUS FIXED ASSETS
Particulars Qty Rate (Rs) Amount (Rs)

Electrical Load Security and Transformer LS -- 95000
Furniture’s, Fixtures including Working LS -- 47000
Tables
Miscellaneous items LS -- 50000
Sub total 192000
Add: Taxes, transportation and installation etc @ 10% 19200
TOTAL 211200
Page | 26
APPENDIX-A4
PRELIMINARY AND PRE-OPERATIVE EXPENSES
Particulars Amount (Rs. lacs)

Travelling Expenses 25000
Non Refundable Deposits and Professional Fees 45000
Interest during implementation 71108
Miscellaneous expenses 47500
TOTAL 188608
Page | 27
APPENDIX-C1
MANPOWER REQUIREMENT & COST
The salaries and wages of different types of manpower is projected as follows:
Salary/ Cost/
Particulars of Employee Numbers Month annum
(Rs) (Rs)
Production Manager 1 12500 150000
Store In-charge cum Accountant 1 10000 120000
Marketing and Sales Personnel 4 8000 384000
Machine Operator/Skilled Workers 3 6000 216000
Unskilled Workers 6 4000 288000
Expenses on salary in the 1st year (Rs) 1158000
Increase of 0.50% has been considered every subsequent year.
Page | 28
APPENDIX-C2
POWER AND UTILITY
A. Expenses on Power
Particulars Quantity Power (Kw) Total (Kw)
Plant & Machinery (Total HP of 20) 1 14.92 14.92
General Lighting 25 0.10 2.50
Total power requirement/ day (Kw) 17.42
No. of hrs/ day 8

Nos. of days/annum 300
Annual power requirement (kwh) 41808
Rate per unit (Rs) 6
Expenses on power (Rs) 250848
B: Estimate of Utility
Expenses on Water/Gas Cylinder/Other Utilities (Rs) 48000
Expenses on Power & Utility at 100% capacity (Rs) 298848
Page | 29
APPENDIX-D1
REPAIR AND MAINTENANCE COST
(Rs. in lacs)
Particulars Cost (Rs) Contingencies Total Rate Amount (Rs)
Building & Civil Works 10.00 0.50 10.50 1.00% 0.11
Plant & Machinery 6.72 0.34 7.06 2.00% 0.14
Misc. Fixed Assets 2.11 0.11 2.22 1.50% 0.03
Expenses on repair &
maintenance in year 1 18.83 0.94 19.77 0.28
Page | 30
APPENDIX-D2
ESTIMATES OF INCOME
(Basis-100% Capacity Utilisation)
Price
per
Unit
Particulars Qty (Rs.) Amount (Rs.)
Bamboo Shoot Pickle 100 Ton 62000 6200000
Canned Bamboo Shoot 150 Ton 42000 6300000
Total Sales per annum at 100% capacity (Rs) 250 Ton 12500000
Page | 31
APPENDIX-D3
INTEREST ON WORKING CAPITAL
(Rs. in lacs)
Particulars Year 1 Year 2 Year 3
Total Current Assets 7.95 9.26 10.57
Bank Loan (75%) 5.96 6.94 7.93
Interest @ 12% 0.72 0.83 0.95
Page | 32
APPENDIX-D4
DEPRECIATION SCHEDULE
(Rs in lacs)
Amount/
Description Cost (Rs) Contingencies Total Rate annum
(Rs)
Building & Civil Works 10.00 0.50 10.50 3.17% 0.33
Plant & Machinery 6.72 0.34 7.06 6.33% 0.45
Misc. Fixed Assets 2.11 0.11 2.22 9.50% 0.21
TOTAL 18.83 0.94 19.77 0.99
Page | 33

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What is the proposed project about?

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What are the projected sales and capacity details?

PROJECT REPORT

SL. NO. ITEMS PAGE NO.

1. THE PROJECT AT A GLANCE 01

6. QUALITY CONTROL AND STANDARDS 06

7. CONSUMABLES, POWER AND UTILITY 07

9. BASIS AND PRESUMPTIONS 09

10. PROJECT COST ESTIMATES AND 10

11. ECONOMIC VIABILITY AND FINANCIAL 12

SL. NO. ITEMS PAGE NO.

A. ESTIMATED COST OF THE PROJECT 14

B. PROPOSED MEANS OF FINANCE 15

C. WORKING CAPITAL ESTIMATES 16

D COST AND PROFITABILITY ESTIMATES 17

E. PROJECTED BALANCE SHEET 18

F. PROJECTED CASH FLOW STATEMENT 19

G. DEBT-SERVICE COVERAGE RATIO 20

I. INTERNAL RATE OF RETURN 22

K. TERM LOAN REPAYMENT SCHEDULE 23

SL. NO. ITEMS PAGE NO.

A1. COST OF LAND & BUILDING 24

A2. COST OF PLANT & MACHINERY 25

A3. MISC. FIXED ASSETS 26

A4. PRELIMINARY & PRE-OPERATIVE 27

C1. MANPOWER REQUIREMENT & COST 28

C2. POWER & UTILITY 29

D1. REPAIR AND MAINTENANCE COST 30

D2. ESTIMATES OF INCOME 31

D3. INTEREST ON WORKING CAPITAL 32

D4. DEPRECIATION SCHEDULE 33

THE PROJECT AT A GLANCE

Sl. No. Particulars Description

2.5.1. Market and demand of the products.

2.5.2. Requirements of miscellaneous assets for the project.

2.5.3. Estimation of installed capacity and operation pattern.

2.5.4. Consumables, power & utilities and manpower requirements etc.

2.5.6. Means of Finance

2.5.8. Implementation Schedule.

3.2. The key products of the proposed project are as follows;

 Bamboo Shoot Pickle

 Canned Bamboo Shoot

5.1. The process flow diagram is as follows:

BAMBOO SHOOT PICKLE CANNING OF BAMBOO SHOOT

CURING IN SALT BRINING AND DRAINING

ADDING SPICES STERILIZATION

MIXING WITH OIL AND VINEGAR COOLING

QUALITY CONTROL AND STANDARDS

(i) IS : 10146 (Specification for Polyethylene in contact with foodstuffs);

6.2. General packaging requirements for canned products;

(i) All containers shall be securely packed and sealed.

6.5. ENERGY CONSERVATION: Proper care should be taken in running the

CONSUMABLES, POWER AND UTILITY

7.1. The major consumables required are as follows;

1. Raw Bamboo Shoot

Plant & Machinery - 14.92 KW

General Lighting - 2.50 KW