TECHNO-ECONOMIC ASSUMPTIONS

S.
No Particulars Units
A General Assumptions
Cross bred
1 animals (Jersy        
Type of animal or HF cross)
4 in I half of first 4 in II half of
2 Number of animals 8
year (A) first year (B)
3 Cost of animals (Rs./animal) 50,000        
Calf &
4 Cow
Shed Construction Heifer Store    
Floor space
  50
requirement (Sq.ft) 25 100    
Cost of construction
  350
(Rs./Sq.ft) 0 0    
6 Cost of Land in (Rs/Acre) 0        
Cost of Borewell & Motor
7 0
Installation (Rs)        
8 Cost of milking machine (Rs) 50,000        
9 Chaff Cutting Machine (Rs) 20,000        
Miscellaneous Equipments
10 2,000
(Rs)        
Insurance
11 6
premium/animal/year (%)        
Calf&Hei
12 Veterinary aid/year (Rs.) Cow 5,000
fer 500  
Nos.
Unit labour cost per month after
13
(Rs.) No. till 3rd
7,000 1 3rd year 2 year
(till 3rd
14 Electricity charges (Rs./year) 2,000 2,000 (after 3rd year)
year)
15 Depriciation on Building (%) 5        
Depriciation on Equipments
16 10        
(%)
   
B Production Assumptions
1 Lactation length in days 350        
2 Dry period in days 65        
3 Calf starter feeding in days 90        
4 Sex Ratio of calves Born 1:1        
Age at Sexual maturity in
5 2.0
Years        
6 Service Period in Days 60        
7 Age at First Calving in Years 3.0        
             
C Feeding Assumptions
1 Concentrate feeding          
For lactating animals
  6
(Kg/day)        
  For dry animals (Kg/day) 2        
  For Calfs (Kg/day) 0.50        
2 Dry Fodder Feeding        
Dry fodder requirement
  5        
(Kg/animal/day)
Dry fodder requirement
  3        
(Kg/Heifer/day)
Dry fodder requirement
  1        
(Kg/Calf/day)
Cost of concentrate in Rs
3 24        
per Kg
Cost of calf starter in Rs per
4 25        
Kg
5 Cost of dry fodder (Rs./Kg) 3        
Green Fodder (1 acre yields 100-120 tonnes of green fodder which is sufficient for 10
6
dairy cows and progeny)
Fodder area (till 3rd
  1 2 (after 3rd year)
requirement in Acres year)
Cultivation cost in
  12,000
first year (Rs. /Acr)        
In subsequent years
  2,500        
(Rs. /Acr)
             
D Returns
1 Milk yield (Litres/day/animal) 12        
2 Sale price of milk (Rs./litre) 34        
Sale price of heifer calves
3 0
(Rs./animal)        
Sale price of bull
4 6,000
calves(Rs./animal)        
Sale of manure/Animal/ year
5 2,000
in Rs.        
6 Sale of Gunny bags (Rs./bag) 40        
             
E Finance
1 Margin money (%) 10        
2 Repayment period 7        
3 Rate of Interest (%) 9        
4 Subsidies (if any) 0        
 DETAILS OF INVESTMENT
Sl.No Particulars (Rs.)
A Fixed Investment  
1 Cost of animals 400,000
2 Cost of Land 0
3 Cost of Borewell and Motor Installation 0
4 Cost of building 140,000
5 Cost of equipments 72,000
  Total Fixed Investment Rs. 612,000
     
B Fixed Cost  
1 Insurance cost 24,000
2 Cost of labour 84,000
3 Cost of Electricity 2,000
  Total Fixed Cost Rs. 110,000
     
C Variable cost  
1 Cost of concentrate feed 297,960
2 Cost of green fodder production 12,000
3 Cost of dry fodder 37,050
4 Cost of Veterinary aid 43,000
  Total Variable Cost Rs. 390,010
     
GRAND TOTAL Rs. 1,112,010
     
     
Cost of Project
1 Loan From Bank Rs. 1,000,809
2 Margin amount from entrepreneur Rs. 111,201
  Total cost of project Rs. 1,112,010
 INCOME-EXPENDITURE STATEMENT
             
Particulars I year II year III year IV year V year VI year
Income            
From Sale of Milk 783360 979200 979200 1224000 1713600 2203200
From sale of Manure 16000 16000 20000 28000 36000 46000
From sale of Gunny
Bags 7086 9029 11234 15697 20211 25829
From sale of Bull calves 24000 24000 24000 30000 42000 54000
Total Income Rs. 830,446 Rs. 1,028,229 Rs. 1,034,434 Rs. 1,297,697 Rs. 1,811,811 Rs. 2,329,029
             
Expenditure            
On concentrate feed 297960 379560 472200 659730 849510 1085610
On green fodder 12,000 2,500 2,500 14,500 5,000 5,000
On dry fodder 37050 56910 74430 97965 126420 163635
On veterinary aid 43000 45000 56000 77000 99500 127500
On labour 84000 84000 84000 168000 168000 168000
On insurance 24000 24000 30000 42000 54000 69000
On electricity 2,000 2,000 2,000 2,000 2,000 2,000
On depreciation            
-Building 7000 6650 6318 6002 5702 5416
-Equipment 7200 6480 5832 5249 4724 4252
Total Expenditure Rs. 514,210 Rs. 607,100 Rs. 733,280 Rs. 1,072,445 Rs. 1,314,855 Rs. 1,630,413
 PROFIT AND LOSS STATEMENT
Particulars I year II year III year IV year V year VI year
Expenditure
Total Expenditure 514,210 607,100 733,280 1,072,445 1,314,855 1,630,413
Net Expenditure (TE- Dep &Int) 500,010 593,970 721,130 1,061,195 1,304,430 1,620,745
Income
Total Income (TI) 830,446 1,028,229 1,034,434 1,297,697 1,811,811 2,329,029
Net Profit(TI-NE) 330,436 434,259 313,304 236,502 507,381 708,284

REPAYMENT SCHEDULE
             
Open Repayment of Total Net
Year Interest Net profit
Balance Principal Interest Repayment surplus
I 1,000,809 120,097 330,436 166,802 120,097 286,899 43,537
II 834,008 100,081 434,259 166,802 100,081 266,882 167,376
III 667,206 80,065 313,304 166,802 80,065 246,866 66,438
IV 500,405 60,049 236,502 166,802 60,049 226,850 9,652
V 333,603 40,032 507,381 166,802 40,032 206,834 300,548
VI 166,802 20,016 708,284 166,802 20,016 186,818 521,466
  CASH FLOW STATEMENT      

             
Particulars I year II year III year IV year V year VI year
Inflow
From Sale of Milk 783360 979200 979200 1224000 1713600 2203200
From sale of Manure 16000 16000 20000 28000 36000 46000
From sale of Gunny
Bags 7086 9029 11234 15697 20211 25829
From sale of Bull
calves 24000 24000 24000 30000 42000 54000
Total Rs.
Cash Inflow 830,446 Rs. 1,028,229 Rs. 1,034,434 Rs. 1,297,697 Rs. 1,811,811 Rs. 2,329,029
Outflow
On concentrate feed 297960 379560 472200 659730 849510 1085610
On green fodder 12000 2500 2500 14500 5000 5000
On dry fodder 37050 56910 74430 97965 126420 163635
On veterinary aid 43000 45000 56000 77000 99500 127500
On labour 84000 84000 84000 168000 168000 168000
On insurance 24000 24000 30000 42000 54000 69000
On electricity 2000 2000 2000 2000 2000 2000
Tot Rs.
al Outflow 500,010 Rs. 593,970 Rs. 721,130 Rs. 1,061,195 Rs. 1,304,430 Rs. 1,620,745
             
Rs.
Net Cash Inflow 330,436 Rs. 434,259 Rs. 313,304 Rs. 236,502 Rs. 507,381 Rs. 708,284
 Financial Analysis of the Project
Year Year Year Year Year Year
Particulars
1 2 3 4 5 6
Fixed Investment 612,000 0 0 0 0 0
Working Capital 500,010 593,970 721,130 1,061,195 1,304,430 1,620,745
Total Cost 1,112,010 593,970 721,130 1,061,195 1,304,430 1,620,745
Total Benefit 830,446 1,028,229 1,034,434 1,297,697 1,811,811 2,329,029
Net Cash Flow -281,564 434,259 313,304 236,502 507,381 708,284
DCF at 20% 0.833 0.694 0.579 0.482 0.402 0.335
Disc. Benefit 692,038 714,048 598,631 625,818 728,126 779,987
Disc.cost 926,675 412,479 417,321 511,765 524,221 542,784
NPV at 20% DCF -234,637 301,568 181,310 114,054 203,905 237,203
DCF at 25% 0.800 0.640 0.512 0.410 0.328 0.262
Disc. Benefit 664,357 658,066 529,630 531,537 593,694 610,541
Disc.cost 889,608 380,141 369,219 434,665 427,436 424,869
NVP at 25% DCV -225,251 277,925 160,412 96,871 166,259 185,672

Benefit Cost Ratio at

Internal Rate of Returns 26.76 %

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