MODEL-DPR-MERGED Test

Download as pdf or txt
Download as pdf or txt
You are on page 1of 157

PROJECT REPORT

for
---------------Custom Hiring Center.”
Prepared by :
Name &Address
PROJECT ON:-
Establishment of----------Custom Hiring Center

Under Agriculture Infrastructure Fund Scheme

And
Under Sub-Mission on Agriculture Mechanization (SMAM)

“Solution for Hiring Farming Machinery"

Term Loan of Rs.18.64 Lakhs


(Net Loan 18.64 Lakhs Excluding Subsidy)

Name of Promoters

Year 2022-23
Project at a Glance
Establishment of Custom Hiring
1 Name of Project
Center

Name of the Concern and Proprietor Detial


2

3 Address

4 Aadhar Card -

5 Mobile No

Under Subsidy Scheme of Sub Mission on


Scheme Name Agriculture Mechanization with Agriculture
6
Infrastructure Fund of Central Govt. (A.I.F)
1. Tractor 17.31
2. Other Equipment 7.54
Cost of Project (Rs In Lacs)
7 Total Cost of Project 24.85
1. Own Fund 6.21
2. Term Loan 18.64
Means of Finance (Rs In Lacs)
8 3. Grant SMAM 0.00
Total Means of Finance 24.85

9 Period of Term Loan 7 Year (14 Equated Six monthly Installment)


Rs.18.64 Lakhs (Including Subsidy) (Net
10 Amount of Term Loan.
Loan Rs 18.64)
11 DSCR Average 2.87
12 Payback Period 3 Year Two Months Approx
13 Break Even Point Average 32%

Prepared by :
Name &Address
Brief Profile
Introduction:
Indian agriculture is under going a gradual shift from dependence on human power

and animal power to mechanical power because increasing keep for upkeep of animal and

growing scarcity of human labour . Further use of mechanical power has a direct bearing

on the productivity of a crop apart from reducing the drudgery and facilitating

timelessness of agriculture operations .Thus there is a strong need for taking farm

mechanization CHC aims to such mechanizations.

-----------------------is setting up a Custom Hiring Center at Village-, ------ Block &


Dist---Kerala at In this they will help formers in the nearby area in farm
mechanization.
In Custom Hiring Center they will provide tractors and ancillaries to farmers
on custom hiring basis wherein he will work with farmers in their farm on
payment basis.

Advantage of Custom hiring

1. Provides access to small and marginal farmers to costly farm machinery


2. Facilitates timeliness in farm operations and efficient use of inputs
3. Promotes adoption of climate resilient practices and technologies by farmers
because of availability of appropriate machines at reasonable hiring charge
4. Reduces drudgery
5. Promotes increase in cropping intensity wherever feasible
6. Facilitates crop residue recycling and prevents burning of residues
7. Reduction in cost of cultivation

Promoters:
Objective:
 To make available various farm machinery / equipment to small andmarginal.
 Farmers To offset the adverse economies of scale due to high cost of
individual ownership.

 To improve mechanization in places with low farm power availability

 To provide hiring services for various agricultural machinery/implementsapplied.

 For different operations. To expand mechanized activities during cropping


seasons in large areas especially In small and marginal holdings.

 To provide hiring services for various high value crop specific machinesapplied for
different operations.
Scheme :
 Scheme Declared on ------------notification no----------------by Ministry of
Agriculture.

 The government of Kerala will provide subsidy to establish Hi-


tech Hub Centre. The assistance to each centre will be to the tune of 40%of
the cost of machineries for all categories person and implements purchased
for providing Custom Hiring Services to farmers, up to maximumof Rs. 10
lakhs under credit linked back ended Subsidy. and Central Government will
Provide Additional Interest Subvention of 3% Under AIF Scheme.
 Loan from Bank Can Be taken Without any Collateral Security Under
CGTMSE Scheme in Which Government Given Gurantee to Bank for Loan. Cost
of CGTMSE Fees will be Reimbursed by Central Government Under AIF
Scheme.
 Under Agriculture Infra Fund Scheme of government of India interest
subvention of 3% is to be received on bank loan & Collateral Guarantee is to
be received under CGTMSE Scheme of Government of India. To avail benefit
under Agriculture Infra Fund (AIF) Scheme application has to be applied
through portal 'https://www.agriinfra.dac.gov.in.
 The machines and implements to be kept compulsorily for
Agriculturecrop at each Hitech Hub center are as follows-
S.no Implements/ Machines
1 Tractor (1)
2 Reversible Plough(1)
3 Rotavator (1)
4 Cultivator or Disk Hero (1)
5 Seed cum fertilizer Drill /Zero Til Seed Cum Fertilizer Drill (1)
6 Tractor Operated Thresher or Straw-reaper. (1)
7 Raised Bed Planter or Rice Trans Planter (1)
 All Equipment and Machines which was purchased will be registered from
Directorate of Agriculture Engineering.
 Dealer from which Equipment will be registered from Directorate of
Agriculture Engineering.

Period of Loan :

Loan Period will not be less than 4 years (Lock In Period) and maximum 9
Years. Before closing of loan from 4 year he is not eligible for Subsidy. and
Maximum Moratorium Period 6 Months.

Margin Money
S.no Cost of Project Margin Money Eligible Subsidy
1 Up to 18 Lacs 20 % of Cost of 40% of cost of Project
Project maximum Rs. 7.20 Lacs

2 Rs. 18 lacs upto Rs.25 25% of Cost of 40% of cost of Project


Lacs Project maximum Rs. 10 Lacs
Social and Economic Benefits ¸
Economic benefits ¸
 Increasing the efficiency of labour
 Reducing costs
 Increasing the area cultivated
 Undertaking more timely production
 Improving the quality of cultivation
 Increasing yields
 Adopting crop diversification
 Reducing harvest and post-harvest losses
 Earning a rental income through hiring farm-power services to others
Social benefits ¸
 Reducing drudgery and workloads
 Improving safety
 Gaining prestige
 Encouraging youth and more innovative people to remain in rural areas and
work on the land leads to Social and Economic Benefits
PARTICULARS AMOUNT

Land Owned

Farm Development Nil

Farms Building Owned

Tractors (As per Annexure-1) 1731191

Other Agriculture Implements (As per Annexure-1) 754256

TOTAL 2485447

MEANS OF FINANCE

S.NO. PARTICULARS AMOUNT

1 Own Capital 621447

2 Term Loan 1864000

3 Grant

TOTAL 2485447

(* Own Margin Increase to Set Loan Amount in Thousand)


List of Machinery and Ancillaries with Model and Manufacture Details

SlnO Model/Brand Dealer (To be


Particular Manufacture Name Purchased From ) Qnty. Amount
Mahindra and
Mahindra Ltd Swaraj 8 55 FE / M/S MahaLaxmi
1 Tractor (1) Divison Swaraj Motors 1 846491
Mahindra and Arjun Novo
Mahindra Ltd (Farm 605 DII /
2 Tractor (2) Equipment Sector) Mahindra Mahalaxmi Motors 1 884700

Total cost of Tractor (A) 1731191

Hydraulic 2
Hydraulic Reversible Bottom / Gore Traders &
3 Plough Solanki Loha Udhyog Solanki Machinery 1 75040
VKY-
RT748 /
Vasundhara Krishi Vasundhara
Yantra Krishi Yantra Gore Traders &
4 Rotavator Machinery 1 115000
Rigid Tyne (
9 Tynes) / Gore Traders &
5 Caltivator Solanki Loha Udhyog Solanki Machinery 1 30240
9 Tynes,
Seed cum fertilizer Riyer/Front
Drill/Zero Til Seed wheel / Gore Traders &
6 Cum Fertilizer Drill Solanki Loha Udhyog Solanki Machinery 2 91840
Three Fan
Tractor Operated Multicrop
Multycrop /Excel Vikash Engineering Thresher / Gore Traders &
7 Peddyflow Thresher Works VEW Machinery 1 355000

Raised Bed Planter or Balaji Engineering MCP- 54 / Gore Traders &


8 Rice Trans Planter Works Balaji Machinery 1 87136
Total cost of (B) 754256
Implements
Total Cost of All Farms Machinery (A+B) 2485447
PROJECTED PROFITABILITY CHART

PARTICULARS I II III IV V VI VII


(Esti) (Proj) (Proj) (Proj) (Proj) (Proj) (Proj)
Revenue Gross 2136000 2269500 2403000 2536500 2670000 2670000 2670000
TOTAL :- 2136000 2269500 2403000 2536500 2670000 2670000 2670000
COST OF OPERATION
Fual Consumption Charges 894240 950130 1006020 1061910 1117800 1117800 1117800
Maintance Cost 124272 105632 89787 76319 64871 55140 46869
Operator & Manpower Expenses 152000 167200 183920 202312 222543 222543 222543
SUB TOTAL :- 1170512 1222962 1279727 1340541 1405214 1395483 1387212
GROSS PROFIT 965488 1046539 1123273 1195959 1264786 1274517 1282788
GROSS PROFIT RATIO 45% 46% 47% 47% 47% 48% 48%
Insurance & Other Misc Expenses Exp. 124272 105632 89787 76319 64871 55140 46869
Depreciation 372817 316895 269361 228956 194613 165421 140608
Interest Charges Of Term loan 148290 126328 104367 82405 60444 38482 16521
TOTAL 645379 548855 463514 387680 319928 259043 203998
NET PROFIT BERORE TAX 320109 497684 659759 808279 944858 1015473 1078790
NET PROFIT BEFORE TAX RATIO 15% 22% 27% 32% 35% 38% 40%
INCOME TAX 7011 24768 72928 117484 158458 179642 198637
NET PROFIT AFTER TAX 313098 472915 586831 690796 786401 835831 880153
CASH GENERATION 685915 789810 856192 919752 981014 1001252 1020761
NET PROFIT RATIO 15% 21% 24% 27% 29% 31% 33%
TRANSFERRED TO BALACE SHEET 313098 472915 586831 690796 786401 835831 880153
DEPRECIATION ON FIXED ASSETS (AS PER W.D.V. METHOD)

Calculation of Depreciation on Fixed YEAR


Assets
Details of Assets Rate I II III IV V VI VII
Tractors 15% Cost 1731191 1471512 1250785 1063167 903692 768138 652917
Deprn 259679 220727 187618 159475 135554 115221 97938
Implements 15% Cost 754256 641118 544950 463207 393726 334667 284467
Deprn 113138 96168 81743 69481 59059 50200 42670

Total WDV 2112630 1795735 1526374 1297418 1102805 937384 796776


Deprn 372817 316895 269361 228956 194613 165421 140608
Details of Revenue
(Year Ending 31st March )

S.
No Particular 2022 2023 2024 2025 2026 2027 2028

a Installed Capacity Nos (Working Hours)


1 TRACTOR WITH REVERSIBLE PLOUGH 1 400 400 400 400 400 400 400
2 TRACTOR WITH ROTAVATOR 1 400 400 400 400 400 400 400
3 TRACTOR WITH CULTIVATOR 1 300 300 300 300 300 300 300
4 TRACTOR WITH SEED DRIL/HAPPY 2 400 400 400 400 400 400 400
SEEDER
5 TRACTOR WITH MULTYCROP THRESHER 1 400 400 400 400 400 400 400
6 TRACTOR WITH RAIS BED PLANTER 1 400 400 400 400 400 400 400

b Utilization 80% 85% 90% 95% 100% 100% 100%


C No of Tractor 2 2 2 2 2 2 2
d Net Harvesting
1 TRACTOR WITH REVERSIBLE PLOUGH 320 340 360 380 400 400 400
2 TRACTOR WITH ROTAVATOR 320 340 360 380 400 400 400
3 TRACTOR WITH CULTIVATOR 240 255 270 285 300 300 300
4 TRACTOR WITH SEED DRIL/HAPPY 640 680 720 760 800 800 800
SEEDER
5 TRACTOR WITH MULTYCROP THRESHER 320 340 360 380 400 400 400
6 TRACTOR WITH RAIS BED PLANTER 320 340 360 380 400 400 400
Total Hours 2160 2295 2430 2565 2700 2700 2700

e Revenue Rate P/H


TRACTOR WITH REVERSIBLE PLOUGH 1000 320000 340000 360000 380000 400000 400000 400000
TRACTOR WITH ROTAVATOR 1000 320000 340000 360000 380000 400000 400000 400000
TRACTOR WITH CULTIVATOR 900 216000 229500 243000 256500 270000 270000 270000
TRACTOR WITH SEED DRIL/HAPPY 1000 640000 680000 720000 760000 800000 800000 800000
SEEDER
TRACTOR WITH MULTYCROP THRESHER 1000 320000 340000 360000 380000 400000 400000 400000
TRACTOR WITH RAIS BED PLANTER 1000 320000 340000 360000 380000 400000 400000 400000
Total Revenue 213600 226950 240300 253650 267000 267000 267000
0 0 0 0 0 0 0
Details of Direct Expenses
Details of Fuel Consumption Expenses
PARTICULARS I II III IV V VI VII
(Esti) (Proj) (Proj) (Proj) (Proj) (Proj) (Proj)

Total Harvesting Running Hours 2160 2295 2430 2565 2700 2700 2700

Fual Consumption Per Ltr per Hour (Average) 4.50 4.50 4.50 4.50 4.50 4.50 4.50

Rate of Fual Per Ltr 92 92 92 92 92 92 92

Fual Consumtion Expenses 894240 950130 1006020 1061910 1117800 1117800 1117800
Details of Maintenance Cost

PARTICULARS I II III IV V VI VII


(Esti) (Proj) (Proj) (Proj) (Proj) (Proj) (Proj)

Total Cost of Tractor 173119 147151 125078 106316 903692 768138 652917
1 2 5 7
Average Maintenance for Tractor 5 % of Cost 5 5 5 5 5 5 5
(Average)
Expenses for Tractor Maintenance (A) 86560 73576 62539 53158 45185 38407 32646

Total Cost of Implements 754256 641118 544950 463207 393726 334667 284467

Average Maintenance for Implements 5 % of Cost 5 5 5 5 5 5 5


(Average)
Expenses for Tractor Maintenance (B) 37713 32056 27248 23160 19686 16733 14223

Total Maintenances Cost (A+B) 124272 105632 89787 76319 64871 55140 46869

Details of Operator Salary & Manpower Expenses

PARTICULARS I II III IV V VI VII


(Esti) (Proj) (Proj) (Proj) (Proj) (Proj) (Proj)

No of Driver 1 1 1 1 1 1 1
No of Helper Driver/Supporter 1 1 1 1 1 1 1
Salary Per Months of Driver 10000 11000 12100 13310 14641 14641 14641
Salary Per Months of Helper Driver 9000 9900 10890 11979 13177 13177 13177
No of Months Working (Average) 8 8 8 8 8 8 8

Total Salary & Manpower Expenses 152000 167200 183920 202312 222543 222543 222543
PROJECTED BALANCE SHEET

YEAR ENDED I II III IV V VI VII


LIABILITIES (Esti) (Proj) (Proj) (Proj) (Proj) (Proj) (Proj)

CAPITAL 0 634545 757460 894291 1035087 1171488 1332319


ADD: ADD DURING THE YEAR 621447 0 0 0
RESERVES AND SURPLUS 313098 472915 586831 690796 786401 835831 880153
LESS:WITHDRAWAL 300000 350000 450000 550000 650000 675000 700000

TOTAL CAPITAL 634545 757460 894291 1035087 1171488 1332319 1512472

SECURED LOANS
TERM LOAN 1597800 1331600 1065400 799200 533000 266800 0
Term Loan (SUBSIDY 40%) 0 0 0 0 0
TOTAL :- 2232345 2089060 1959691 1834287 1704488 1599119 1512472

PROJECTED BALANCE SHEET

I II III IV V VI VII
SUNDRY ASSETS (Esti) (Proj) (Proj) (Proj) (Proj) (Proj) (Proj)

FIXED ASSETS
GROSS BLOCK 0 2485447 2485447 2485447 2485447 2485447 2485447
ADDITION IN FIXED ASSETS 2485447 0 0 0 0 0 0
LESS: DISPOSAL 0 0 0 0 0 0 0
LESS: DEPRECIATION 372817 689712 959073 1188029 1382642 1548063 1688671
NET BLOCK 2112630 1795735 1526374 1297418 1102805 937384 796776

CURRENT ASSETS
DEPOSIT OF SUBSIDY 40% 0 0 0 0 0 0 0
CASH & BANK BALANCE 119715 293325 433317 536869 601683 661735 715696

TOTAL CURRENT ASSETS 119715 293325 433317 536869 601683 661735 715696
TOTAL :- 2232345 2089060 1959691 1834287 1704488 1599119 1512472

PROJECTED CASH FLOW STATEMENT EXHIBITS NO F:VII

I II III IV V VI VII
PARTICULARS Pre- (Esti) (Proj) (Proj) (Proj) (Proj) (Proj) (Proj)
Oper.

SOURCES OF FUNDS
NET PROFIT 313098 472915 586831 690796 786401 835831 880153
DEPRECIATION 372817 316895 269361 228956 194613 165421 140608
INCREASE IN CAPITAL 6214 0 0 0 0 0 0
47
INCREASE IN CURRENT LIABILITY 2662 0 0 0 0
00
INCREASE IN TERM LOAN 15978 0 0 0 0 0 0
00
INCREASE IN SUBSIDY 0 0 0 0 0 0 0
TOTAL:- 24854 685915 789810 856192 919752 981014 1001252 1020761
47

DISPOSITION OF FUNDS

INVESTMENT IN FIXED ASSETS 24854 0 0 0 0 0 0


47
SUBSIDY RECEIVABLE
WITHDRAWALS FROM CAPITAL 300000 350000 450000 550000 650000 675000 700000
DECREASE IN CURRENT LIB. 0 0 0 0 0 0 0
REPAYMENT OF TERM LOAN 266200 266200 266200 266200 266200 266200 266800
TOTAL:- 24854 566200 616200 716200 816200 916200 941200 966800
47

OPENING BALANCE OF CASH 0 0 119715 293325 433317 536869 601683 661735


SURPLUS DURING THE YEAR 0 119715 173610 139992 103552 64814 60052 53961
CLOSING BALANCE OF CASH 0 119715 293325 433317 536869 601683 661735 715696
check - 0 - - - - - -
BALANCE SHEET ANALYSIS

I II III IV V VI VII
PARTICULARS
(Esti) (Proj) (Proj) (Proj) (Proj) (Proj) (Proj)
REVENUE PER MONTH 178000 189125 200250 211375 222500 222500 222500

CONSUMTION PER MONTH 74520 79178 83835 88493 93150 93150 93150

TANGIBLE NET WORTH 634545 757460 894291 1035087 1171488 1332319 1512472

TERM LIABILITIES 159780 1331600 1065400 799200 533000 266800 0


0
TOTAL OUTSIDE LIABILITIES 159780 1331600 1065400 799200 533000 266800 0
0
CURRENT ASSETS 119715 293325 433317 536869 601683 661735 715696

CURRENT LIABILITY 266200 266200 266200 266200 266200 266800 0

CURRENT RATIO 0.45 1.10 1.63 2.02 2.26 2.48 0

DEBT/EQUITY RATIO 2.52 1.76 1.19 0.77 0.45 0.20 0.00


STATEMENT SHOWING COMPUTATION OF BREAK EVEN SCALE OF OPERATION
I II III IV V VI VII
PARTICULARS
(Esti) (Proj) (Proj) (Proj) (Proj) (Proj) (Proj)

A .TOTAL RECEIPTS 2136000 2269500 2403000 2536500 2670000 2670000 2670000

B. VARIABLE EXPENSES

Fual Consumption 894240 950130 1006020 1061910 1117800 1117800 1117800

Salary & Wages 152000 167200 183920 202312 222543 222543 222543

Repairs & Maintenance 124272 105632 89787 76319 64871 55140 46869
Other Direct Expenses 124272 105632 89787 76319 64871 55140 46869
SUB TOTAL(B) 1294785 1328593 1369514 1416859 1470085 1450624 1434082
C . CONTRIBUTION 841215 940907 1033487 1119641 1199915 1219376 1235918

D. SEMI VARIABLE EXPENSES/FIXED EXPENSES:

Interest on Term loan 148290 126328 104367 82405 60444 38482 16521
Depreciation & amortization of prel. 372817 316895 269361 228956 194613 165421 140608
exps.
SUB TOTAL(D) 521107 443223 373728 311361 255057 203903 157129

BREAK EVEN SCALE OF OPERATION 62 47 36 28 21 17 13


PRESENT CAPACITY UTILISATION D/CX100
13 10 7 5 3 1
CASH BEP AT INSTALLED CAPACITY 18

Check Point - - - - - - -

REPAYMENT SCHEDULE OF TERM LOAN

OPENING EMI REP.OF CLOSING INTEREST TOTAL OF


YEAR BALANCE PRINCIPA BALANCE 8.25% INTEREST
L
YEAR 1
I 18,64,000 1,33,100 1,33,100 17,30,900 76,890
II 17,30,900 1,33,100 1,33,100 15,97,800 71,400 1,48,290
YEAR 2
I 15,97,800 1,33,100 1,33,100 14,64,700 65,909
II 14,64,700 1,33,100 1,33,100 13,31,600 60,419 1,26,328
YEAR 3
I 13,31,600 1,33,100 1,33,100 11,98,500 54,929
II 11,98,500 1,33,100 1,33,100 10,65,400 49,438 1,04,367
YEAR 4
I 10,65,400 1,33,100 1,33,100 9,32,300 43,948
II 9,32,300 1,33,100 1,33,100 7,99,200 38,457 82,405
YEAR 5
I 7,99,200 1,33,100 1,33,100 6,66,100 32,967
II 6,66,100 1,33,100 1,33,100 5,33,000 27,477 60,444
YEAR 6
I 5,33,000 1,33,100 1,33,100 3,99,900 21,986
II 3,99,900 1,33,100 1,33,100 2,66,800 16,496 38,482
YEAR 7
I 2,66,800 1,33,100 1,33,100 1,33,700 11,006
II 1,33,700 1,33,700 1,33,700 0 5,515 16,521

* Loan Amount Consider After Duction of Subsidy.


** Last Installment Adjusted for Rounding off of Installment
Amount.
*** Interest rate Assumed 10% and Less 3% Interest Subvention
under AIF.
D.S.C.R. CHART
I II III IV V VI VII
PARTICULARS
(Esti) (Proj) (Proj) (Proj) (Proj) (Proj) (Proj)

Net Profit after Tax 313098 4,72,915 586831 690796 786401 835831 880153

Interest 148290 126328 104367 82405 60444 38482 16521

Depreciation 372817 316895 269361 228956 194613 165421 140608

TOTAL (A) 834204 916139 960559 1002157 1041457 1039734 1037281

Interest 148290 126328 104367 82405 60444 38482 16521

Installment of Term Loan 266200 266200 266200 266200 266200 266200 266800

TOTAL (B) 414490 392528 370567 348605 326644 304682 283321

GROSS D.S.C.R. (A/B) 2.01 2.33 2.59 2.87 3.19 3.41 3.66

GROSS AVERAGE D.S.C.R. 2.87


PERFORMANCE AND FINANCIAL INDICATORS

I II III IV V VI VII
Particulars (Esti) (Proj) (Proj) (Proj) (Proj) (Proj) (Proj)

Revenue Gross 21,36,000 22,69,500 24,03,000 25,36,500 26,70,000 26,70,000 26,70,000


Net Sales 21,36,000 22,69,500 24,03,000 25,36,500 26,70,000 26,70,000 26,70,000
% rise/fall (-) in net sales - 6 6 6 5 - -
Operating Profit 3,20,109 4,97,684 6,59,759 8,08,279 9,44,858 10,15,473 10,78,790
Profit Before INTEREST &
DEPRICIATION 8,41,215 9,40,907 10,33,487 11,19,641 11,99,915 12,19,376 12,35,918
PBDIT/ Sales (%) 39 41 43 44 45 46 46
Profit Before tax 3,20,109 4,97,684 6,59,759 8,08,279 9,44,858 10,15,473 10,78,790
PBT/ Sales (%) 15 22 27 32 35 38 40
Profit After Tax 3,13,098 4,72,915 5,86,831 6,90,796 7,86,401 8,35,831 8,80,153
Cash Accrual 6,78,904 7,65,042 7,83,265 8,02,268 8,22,556 8,21,610 8,22,124
Paid Up Capital 3,21,447 2,84,545 3,07,460 3,44,291 3,85,087 4,96,488 6,32,319
TNW 6,34,545 7,57,460 8,94,291 10,35,087 11,71,488 13,32,319 15,12,472
Adjusted TNW 6,34,545 7,57,460 8,94,291 10,35,087 11,71,488 13,32,319 15,12,472
TOL/TNW (times) 2.52 1.76 1.19 0.77 0.45 0.20 -
Adjusted TOL/TNW 2.52 1.76 1.19 0.77 0.45 0.20 -
NWC (1,46,485) 27,125 1,67,117 2,70,669 3,35,483 3,94,935 7,15,696
DSCR 2.01 2.33 2.59 2.87 3.19 3.41 3.66
Avg DSCR 2.87

Payback Period 3 Year Two Months Approx

BREAK EVEN SCALE OF OPERATION 62 47 36 28 21 17 13


AT
BREAK EVEN SCALE OF OPERATION
AT

Average Breakeven Point 32

3 1
CASH BEP AT INSTALLED CAPACITY 18 13 10 7 5
FORM VI
CASH FLOW STATEMENT
NAME OF THE UNIT
YEAR I II III IV V VI VII
STATUS (Esti) (Proj) (Proj) (Proj) (Proj) (Proj) (Proj)
I II III IV V V V

SOURCES OF FUNDS
NET PROFIT BEFORE TAXES 3,13,098 4,72,915 5,86,831 6,90,796 7,86,401 8,35,831 8,80,153
DEPRECIATION 3,72,817 3,16,895 2,69,361 2,28,956 1,94,613 1,65,421 1,40,608
INCREASE IN CAPITAL 6,21,447 - - - - - -
INCREASE IN CURRRENT LIAB. 2,66,200 - - - - - -
INCREASE IN TERM BORROWINGS 13,31,600 - - - - - -
INCREASE IN -
BORROWINGS(SUBSIDY)
INCREASE IN BANK BORROWINGS - - - - - - -
(FOR WORKING CAPITAL)
INCRESE IN UNSECURED LOAN - - - - - -
DECREASE IN CURRENT ASSETS - - - - - - -
TOTAL:- 29,05,162 7,89,810 8,56,192 9,19,752 9,81,014 10,01,252 10,20,761
DISPOSITION OF FUNDS
INVESTMENT IN FIXED ASSETS 24,85,447 - - - - - -
DECREASE IN BANK BORROWING - - - - - - -
INCREASE IN SUBSIDY RECEIVABLE - - - - -
DECREASE IN CURRENT LIB. - - - - - - -
REPAYMENT OF TERM LOAN - 2,66,200 2,66,200 2,66,200 2,66,200 2,66,200 2,66,800
- - -

DECREASE IN TERM LIABILITY (SUBSIDY


ADUSTED)
WITHDRAWAL FROM CAPITAL 3,00,000 3,50,000 4,50,000 5,50,000 6,50,000 6,75,000 7,00,000
DECREASE IN UNSECURED LOAN
DEPRECIATION WRITTEN OFF - - - - - - -
TOTAL:- 27,85,447 6,16,200 7,16,200 8,16,200 9,16,200 9,41,200 9,66,800
OPENING BALANCE OF CASH - 1,19,715 2,93,325 4,33,317 5,36,869 6,01,683 6,61,735
SURPLUS DURING THE YEAR 1,19,715 1,73,610 1,39,992 1,03,552 64,814 60,052 53,961
CLOSING BALANCE OF CASH 1,19,715 2,93,325 4,33,317 5,36,869 6,01,683 6,61,735 7,15,696
Check - - - - - - -
Model Detailed Project Report

Under the Agriculture Infrastructure Fund Scheme

(Ministry of------------------------------------------)

Prepared by

Name &Address

Contact Details
TABLE OF CONTENTS

Model Detailed Project Report ....................................................................................


Executive Summary .......................................................................................................
1 Objective Of The Project ........................................................................................
2 Project Profile ...........................................................................................................
3 General overview of Coconut production, clusters, phm and value addition in
India ....................................................................................................................................
3.1 Introduction ........................................................................................................................
3.2 Origin, Distribution and Production Of Coconut ...........................................................
3.3 Health Benefits And Nutritional Importance ................................................................
3.4 Cultivation, Bearing And Post-Harvest Managements ..............................................
3.5 Processing And Value Addition In India ......................................................................
4 Model Desiccated Coconut Processing Under AIF Scheme ....................
4.1 Location Of Proposed Project And Land .....................................................................
4.2 Installed Capacity Of Desiccated Coconut Processing Plant...................................
4.3 Raw Material Requirement For The Unit.....................................................................
4.4 Manufacturing Process ..................................................................................................
4.5 Market Demand And Supply For Desiccated Coconut .............................................
4.6 Marketing Strategy For Coconut Products..................................................................
4.7 Detail Project Assumptions ...........................................................................................
5.1 Machinery suppliers .......................................................................................................
LIST OF TABLES

TABLE 1 Project at Glance..............................................................................................................................................


TABLE 2 Project Description ...........................................................................................................................................
TABLE 3 ALL INDIA AREA PRODUCTION AND PRODUCTIVITY OF COCONUT ............................................
TABLE 4 Nutritional composition Of coconut (45 gm edible portion) ......................................................................
TABLE 5 Project Details ................................................................................................................................................
TABLE 6 Fixed Capital Investment ..............................................................................................................................
TABLE 7 Working Capital Requirements ....................................................................................................................
TABLE 8 Total Project Cost ..........................................................................................................................................
TABLE 9 Means Of Finances ........................................................................................................................................
TABLE 10 Expenditure, Revenue And Profitability ......................................................................................................
TABLE 11 Repayment Schedule ....................................................................................................................................
TABLE 12 Assets Depreciation .......................................................................................................................................
TABLE 13 Financial Assessment Of Project .................................................................................................................
TABLE 14 Break Even Analysis ......................................................................................................................................

LIST OF FIGURES

FIGURE 1 Desiccated Coconut Process Flowchart .........................................................................................................


FIGURE 2 Pia chart for Better Understanding Of Expenses Of EACH Head ..............................................................
FIGURE 3 Plant Layout ........................................................................................................................................................
1 EXECUTIVE SUMMARY

Desiccated coconut is coconut meat that is flaked and dried and is available in unsweetened and
sweetened forms. It is an easy topping for a variety of dishes ranging from desserts and cereals to
Asian curries for a flavorful addition that also contains a nutritional value.

Desiccated coconut has traditionally been used in a lot Asian dishes as toppings and ingredients in
curries, cooked cereal and baked food. Europe is the largest importer for desiccated coconut. In
Western Europe, Belgium is the major consumer for desiccated coconut followed by Germany,
Netherlands and U.K. In North American region U.S. accounts for most of desiccated coconut.
European market for desiccated coconut is expected to show considerably high growth. In Asia-Pacific
region India, Singapore are the major consumers for desiccated coconuts.

The meat is shredded or disintegrated and dried in hot air driers at 140-170oF to 2 per cent moisture
content (fat 65-68 % and Solids nonfat 30-32%) and used in the manufacture of cakes, pastries and
chocolates. Desiccated coconut is the disintegrated, white kernel of coconut processed under strict
hygienic conditions and dried to a moisture content of below 3.0 per cent. It is a food product which is
ready and fit for direct human consumption.
TABLE 1
PROJECT AT GLANCE
1 Name of the proposed project Coconut Processing Unit
2 Name of the entrepreneur/FPO/SHG/ Cooperative ---------------------
3 Nature of proposed project
4 Registered office
5 Project site/location
6 Names of Partner (if partnership)
7 No of shareholders (if company/FPC)
8 Technical advisor
9 Marketing advisor/partners
10 Proposed project capacity 375 Kg/day (60, 70 & 80%
capacity utilization in the 2nd,
3rd and 4th years’ onwards
respectively)
11 Raw materials Coconut Processing Unit
12 Major product outputs Desiccated coconut
13 Total project cost : Rs. 19.37 Lakhs
· Land development, building & civil : construction Rs.3.50 Lakh
· Machinery and Equipment’s : (Lakhs) Rs .10.25 Lakh
· Utilities (Power & water facilities) : (Lakhs) Rs. 0.8 Lakh
· Miscellaneous fixed assets : (Lakhs) Rs. 0.8 Lakh
· Pre-operative expenses : (Lakhs) Rs. 1.00 Lakh
· Contingencies : (Lakhs) Rs. 2.00 Lakh
· Working capital margin : (Lakhs) Rs. 1.02 Lakh
14 Working capital requirement
· 2nd year (Lakhs) Rs. 2.54 Lakh
· 3rd year (Lakhs) Rs. 3.02 Lakh
· 4th year (Lakhs) Rs. 3.49 Lakh
15 Means of Finance
· Subsidy grant by (max 10 lakhs) : : Rs. 10.00 Lakhs
· Promoter’s contribution (min 20%) Rs. 3.87 Lakhs
· Term loan (45%) : Rs. 5.49 Lakhs
16 Debt-equity ratio 0.73
17 Profit after Depreciation, Interest & Tax
· 2nd year (Lakhs) Rs. 4.99 Lakh
· 3nd year (Lakhs) Rs. 2.37 Lakh
· 4nd year (Lakhs) Rs. 3.54 Lakh
18 Average DSCR 2.03
19 Benefit-Cost Ratio 1.04
20 Term loan repayment 7 Years with 1year grace
period
21 Payback period for investment 4years
2 OBJECTIVE OF THE PROJECT

The Prime Objective of the Report is to present a Viable Bankable Model of “Desiccated Coconut
Manufacturing Unit” through adoption of appropriate technology, utilization of resources, quality
production and suitable market strategy.

Some important objectives behind setup of “Desiccate Coconut Processing Unit” are:

 The prime objective is to setup this unit is to produce & make available quality product in most
hygienic conditions with good packaging, untouched & with very less human interference during
entire operations till market.

 To produce & market safe, quality-assured products with highest nutrient value than existing one.

 Improve customer’s nutrition by allowing them to consume quality processed product.

 Empowering the lifestyle of promoter by adopting proper techniques in production and marketing of
final product.

 Proper utilization of land, water, labor & other resources for better plant economics.

 Employment generation for youth and women in surrounding areas.


3 PROJECT PROFILE

TABLE 2
PROJECT DESCRIPTION

PARTICULARS DESCRIPTION

Project Name “SET UP OF DESICCATED COCONUT MANUFCTURING


UNIT”
Project Location NA

Project Area 5000 SqFt

Project Proposed Economic  Setup of Desiccated Coconut Manufacturing Unit with


Activities optimum capacity

Project Capacity/Day Desiccated Coconut Manufacturing Unit


 375 kg / Day Capacity
4 GENERAL OVERVIEW OF COCONUT PRODUCTION, CLUSTERS, PHM AND VALUE
ADDITION IN INDIA

4.1 INTRODUCTION

The coconut palm (Cocos nucifera) serves a multifunctional role in the Caribbean region where it is
commonly grown. Small-scale production of products from the coconut palm makes an important
contribution to food security. At the industrial level, the coconut industry is an important source of
employment and income in rural communities. The coconut produces a variety of products which are
consumed in the region and internationally. These include fresh green and dry nuts, copra, coconut oil
and coconut water among others. Coconut oil is consumed as food while a significant amount goes into
the oleo-chemical industry. It is also used in food preparation. Additionally, the shell is used for various
fibres, charcoal, and other products not yet fully commercialized. There is potential for supplies to both
the regional and export markets in the USA, Canada, and European Union markets which are major
destinations for coconut oil and coconut products. Principal among these is the suspected adverse
health and nutrition effects on humans but studies, such as that conducted by Spade and Dietchy
(1988), have shown that coconut oil prevents the formation of hepatic cholesterol esters. In addition to
this, the lauric acid found in coconut oil provides the disease-fighting fatty acid monolaurin which boosts
the immune system. The bottling and storage of coconut water for extended shelf life and improved
marketability is still posing a serious challenge to packers. Research & Development could also improve
the yield and profitability of coconut intended for the bottled water market or coconut intended for other
uses such as oils or fibres.

4.2 ORIGIN, DISTRIBUTIN AND PRODUCTION OF COCONUT

The origin of coconut palm is the subject of controversy. Indian mythology credits the creation of palm
with its crown of leafy fronds to the sage Vishwamitra, to prop up his friend King Trishanku when the
latter was literally thrown out of heaven by Indra for his misdeeds. In Vadakurungaduthurai, Lord
Kulavanangeesar is believed to have taken the form of a coconut tree to help quench the thirst of a
pregnant woman. In Kerala, Goddess Bhagavati is believed to be the soul of the coconut tree. One of
the Goddess’s common epithets is Kurumba which means ‘tender coconut’. Folktales of all other areas
narrate that coconut originated from head of a dead man or from a dead eel.

Coconut is grown in a large area in India in an area of more than 21 Lakh Hectares. Tamil Nadu, Kerala,
Karnataka and Andhra Pradesh are the leading coconut producing states in India and these states
account for more than 90 per cent of the total coconut produced in the country. Productivity increased
to 11516 fruits per hectare in 2017-18 as compared to 10122 in 2013-14. Between 2014 and 2018,
13,117 hectares were brought under new plantation as compared to 9,561 hectares during 2010-2014.
Due to this increase in production of coconut, India has been exporting coconut oil to Malaysia,
Indonesia and Sri Lanka since April 2017. Till March 2017, India was importing Coconut oil.
TABLE 3
ALL INDIA AREA PRODUCTION AND PRODUCTIVITY OF COCONUT
Sr. No States AREA Production Productivity
(In HA) (Million nuts) (Nuts/ha)
1 Kerala 770.62 7429.39 9641
2 Tamil Nadu 459.74 6171.06 13423
3 Karnataka 526.38 5128.84 9744
4 Andhra Pradesh 103.95 1427.46 13732
5 West Bengal 29.51 373.58 12658
6 Odisha 50.91 328.38 6451
7 Gujrat 22.81 312.68 13706
8 Maharashtra 22.75 271.24 9775
9 Bihar 14.9 141.38 9489
10 Assam 19.73 132.59 6720
11 Chhattisgarh 1.85 30.54 16508
12 Tripura 7.2 29.51 4097
13 Nagaland 0.33 2.67 8091
14 Other 52.8 388.13 7351
ALL INDIA 2083.48 22167.45 141386

4.3 HEALTH BENEFITS AND NUTRITIONAL IMPORTANCE

 Coconut kernel is nutritious and rich in fiber, vitamins and minerals.


 Coconut is a natural anti-bacterial and anti-viral food.
 You can get the benefit of coconut fibre by eating fresh or dried coconut and adding coconut to
recipes.
 A multitude of studies have demonstrated that dietary fibre protects against heart attacks and
strokes.
 Diet rich in coconut kernel prevent digestive disorders and it regulates bowel activity.
 It restores thyroid functions and increases the metabolic rate.
TABLE 4 NUTRITIONAL COMPOSITION OF COCONUT (45 GM
EDIBLE PORTION)

Sr.No Nutrient Amount


1 Calories 160
2 Carbohydrate 6.8 g
3 Protein 1.5 g
4 Fat 1.5 g
5 Fiber 4g
6 Sugar 2.8g
7 Sodium 9 mg

4.4 CULTIVATION, BEARING AND POST-HARVEST MANAGEMENTS

Coconut is a tropical crop and is grown where temperature is 25° to 30°C and a fairly well distributed
annual rainfall of 125 to 130 cm. In a few places, especially in Orissa, coconut is grown with as little as
100 cm annual rainfall.

Frost and drought are very harmful to coconut. It is predominantly grown under rainfed condition in
Kerala and parts of coastal Karnataka and Tamil Nadu. In rest of the country it is mainly grown under
irrigated conditions. Well drained rich loamy soils are best suited for its cultivation. It grows well on
sandy loams along sea-coasts and in adjoining river valleys.

Saplings of coconut palm are first raised in nurseries and after one year these are transplanted in the
garden. The tree starts bearing fruits after 6-7 years and continues to yield harvest for 60-80 years. For
better yield the land has to be ploughed or hoed once or twice in a year. Tender nuts are plucked up
for juice after 6 or 7 months while ripen nuts are harvested after 11 months for copra and oil. Gener-ally
one thousand nuts produce about 150 kg of copra.

The coconut palm is found to grow under varying climatic and soil conditions. It is essentially a tropical
plant, growing most!y between 20° N and 20° S latitudes. The ideal temperature for coconut growth
and yield is 27 ± 5° C and humidity > 60 per cent. The coconut palm grows well upto an elevation of
600 m above MSL. However, near the equator, productive coconut plantations can be established up
to an elevation of about 1000 m above MSL. The palms tolerate wide range in intensity and distribution
of rainfall. However, a well distributed rainfall of about 200 cm per year is the best for proper growth
and higher yield. In areas of inadequate rainfall with uneven distribution, irrigation is required.

Post-Harvest Management: -

Coconuts are harvested at different stages of maturity for specific uses. For tender nut purpose,
harvesting is done when the nuts are six to eight months old. For snowball tender nut and coconut chips
purpose, eight to nine and nine to ten month old nuts are harvested respectively. For the production of
copra and other kernel based products, only fully mature coconuts are harvested. The nuts reach full
maturity in 11 to 12 months after the inflorescence is opened. At this stage, the output of copra and oil
as well as brown fibre would be the maximum. In a study in India, it was found that compared to 12
month old nuts, the copra yield was less to the extent of six percent in 11 month old nuts, 16 percent in
10 month old nuts and 33 percent in nine month old nuts. The corresponding reduction in the percentage
of oil was found to be five, 15 and 33 percent respectively. In places where green husks are in demand
for the production of white fibre, the usual practice is to harvest 11 month old nuts. The slightly low
copra output at this stage would, however, be compensated by the additional income derived from the
fibre and its products.

Though the coconut palm produces an average of 12 inflorescences in one year, some of the
inflorescences are likely to abort or may fail to develop into fruit bunches due to environmental factors.
Consequently, the number of bunches available for harvest is less than12 in many areas. Similarly, the
frequency of harvest also varies from country to country and also within the countries. In many areas,
six to twelve harvests per year are the usual practice. In the properly managed gardens, harvest at
monthly intervals is usually adopted. In the neglected gardens, bunches are not produced regularly and,
as such, not more than six harvests are possible in a year. In most of the coconut growing countries,
harvesting is done at bimonthly intervals and only fully mature nuts of 12 months or above are
harvested.

4.5 PROCESSING AND VALUE ADDITION IN INDIA

There exists a huge scope for coconut based agri-business in India in order to increase the present 8%
level of value addition to 25%, thereby value added products becoming a deciding factor in the price
movement of coconut to ensure fair, reasonable and steady price to coconut farmers. Foreseeing the
imperativeness of high value coconut sector, ICAR CPCRI has developed complete package of
practices for the production of virgin coconut oil (hot and fermentation process), coconut chips, coconut
honey, jaggery and sugar. The Institute has also developed a technology for collecting coconut
inflorescence sap by using a device. The sap thus collected is called Kalparasa. Kalparasa can be
preserved up to 45 days under cold condition (in refrigerator) without adding any preservatives and
additives with the bottling technology. It has been demonstrated that a farmer tapping 15 coconut palms
for Kalparasa could earn on an average Rs. 45,000 a month, while a tapper can earn about Rs. 20,000
per month. For sustaining the value added coconut sector, Women Self Help Groups were formed and
equipped with technical know-how and smooth functioning of the coconut value chain was ensured
through continuous supply of value added products to the downstream part of the chain. An activated
carbon plant was designed for the production of pollution free coconut shell charcoal for community
level processing at small scale level. With regard to the commercialization of technologies Institute had
successfully developed market for the value added products through well-established link with the retail
distributor. Moreover, the marketing functionary was made a part of the value chain through appropriate
integration techniques adopted and there by ensured the efficient functioning of the chain.
5 MODEL DESICCATED COCONUT PROCESSING UNDER FME SCHEME

5.1 LOCATION OF PROPOSED PROJECT AND LAND

The coconut processing unit is being installed by M/s. -------------, a Partnership Firm, is located at------------------
-------------------------..Currently factory construction is completed. P&M is been procured and installed in the
factory. Actualproduction is commenced from January 2020. All expenses is been made through own
sourced andcredit availed from vendors.
ABOUT PROMOTERS

Brief details about the Partners are as under :-

Name &details
---------------------------e is ---------------- by qualification & having the wide experience in this line of business
from ancient business of his father. He is having social contacts which will have an additional edge over the
others & will be helpful for the project to get the required raw material from around thearea. He is managing
said business and holding 30% shareholding.
Name &details

------------------------ graduate in Art & having the wide social contacts which will have an additional edge over
the others & will be helpful for the project to get the required raw materialfrom around the area. She is
70% shareholder in the said partnership firm.

5.2 INSTALLED CAPACITY OF DESICATED COCONUT PROCESSING PLANT

The maximum installed capacity of the manufacturing unit in the present model project is proposed as
375 kg/day Desiccated coconut. The unit is assumed to operate 300 days/annum @ 8-10 hrs/day.
The 1st year is assumed to be construction/expansion period of the project; and in the 2nd year 60
percent capacity, 3rd year 70 percent capacity and 4th year onwards 80 percent capacity utilization is
assumedin this model project.

5.3 RAW MATERIAL REQURIMENT FOR THE UNIT

A sustainable food processing unit must ensure maximum capacity utilization and thus requires an
operation of minimum 300 days per year to get reasonable profit. Therefore, ensuring uninterrupted raw
materials supply requires maintenance of adequate raw material inventory. The processor must have
linkage with producer organizations preferably FPCs through legal contract to get adequate quantity
and quality of raw materials which otherwise get spoiled.

5.4 MANUFACTURING PROCESS

Desiccated Coconut

Desiccated coconut, the edible dried-out shredded coconut meat is prepared from fresh kernel of fully
matured coconut and it is available in coarse, medium and fine grades and also in special grades such
as threads, strips, granules etc. Good desiccated coconut is crisp, snow white in colour with a sweet,
pleasant and fresh taste of coconut kernel. Desiccated coconut, a commercial product was
manufactured from the white part of the meat after removing the brown parings. The meat is shredded
or disintegrated and dried in hot air driers at 140-170oF to 2 per cent moisture content (fat 65-68 % and
Solids nonfat 30-32%) and used in the manufacture of cakes, pastries and chocolates. Desiccated
coconut is the disintegrated, white kernel of coconut processed under strict hygienic conditions and
dried to a moisture content of below 3.0 per cent. It is a food product which is ready and fit for direct
human consumption.
FIGURE 1 DESICCATED COCONUT PRCOESS FLOWCHART

Fully Mature Coconut

Ground Storage-1 Month

Dehiscing

Blanching

Disintegrating

Drying

Cooling

Grading

Packaging
Harvesting

The stage of maturity of harvest of coconuts for Desiccated Coconut production is very crucial. The
quality of desiccated coconut depends upon the quality of coconuts used. Fully matured coconuts of
about 11-12 months are used for the preparation of desiccated coconut. Immature nuts tend to produce
rubbery kernel. Foul smelling nuts should not be selected.

Ground storage

Ground storage of coconuts should be done for a month period. During this process, the coconut water
gets absorbed and the kernel grows thicker and harder thus producing a more suitable material for
desiccated coconut production. The coconuts are then de-husked.

De-husking

The de-husked coconut undergoes dehiscing. Dehiscing process involves the following steps

 Deshelling without breaking the kernel - the outer shell is removed. This is done manually or
mechanically.
 Paring - removing the brown testa. This is done by scraping it off manually using paring knives.
Almost 15% of the kernels is lost as paring during this process. Mechanical paring can also be
employed.
 Washing the kernels to remove any remaining testa particles adhering to the surface of the
kernel. This should be done using clean potable water.
 Slicing the pared kernel into two halves to release the coconut water.

Blanching

The kernels are immersed in boiling water for 8-10 minutes in a blanching tank. Alternatively passing
live steam at 88°C through the kernels for 5 minutes can also be done for blanching of the kernels.
Blanching kills fungus and viruses. Blanching is a crucial step to make good quality desiccated coconut
powder.

Disintegrating

The blanched coconuts are shredded into small pieces. This is done using a disintegrator, which is an
impact pulverize with hammer heads. The hammer heads crush and grind the coconut meat to
powdered form.

Disintegrator is capable of producing different sizes from 1mm to 5mm continuously. Different shapes
and fancy cuts are also done.
Drying

The granules are then dried in a drier; the temperature in the drying chamber is maintained at about
80-90°C for 40-45 minutes. The maximum moisture content of the end product should be 3%; only at
this moisture content, the product will have an increased shelf life. The following types of dryers can be
employed.

 Tray dryer

The granules are spread out uniformly in trays. The granules are stirred occasionally during the
process to ensure uniform drying. During this process the trays are moved twice and the content
raked over in order to ensure uniform drying and to break up any lumps that might have formed.

 Rotary dryer

The arrangement consists of a cylindrical rotating drum into which the coconut powder is fed
using a hopper.

 Vibro fluid bed dryer

This is an extension of fluidised bed techniques, by using vibrations as an external aid to


fluidisation. Vibrations breakup the inter-particle forces of attraction and improve quality of
fluidization.

Cooling & Grading

The dried product is allowed to cool to ambient temperature on stainless steel tables, and then sifted
into coarse, medium, fine (macaroon) and extra fine grades. Grading happens in a vibratory screen with
different screens such as 12, 14 and 16 mesh. The graded desiccated coconut goes to packing. In fully
mechanized plants, the cooling system is integrated into the drying system.

Packaging

The desiccated coconut is packed semi-automatically for bulk packages and automatic form fill seal
machines for retail packages.

5.5 MAEKRT DEMAND AND SUPPLY FOR DESICCATED COCONUT

Coconut plays a very significant role in the economy of India. India is the leading coconut producer in
the world (31%) with a production of 20440 million nuts from an area of 1975 thousand hectares. The
productivity of India is the highest (10614 nuts/ha) among major coconut producing countries in the
world. The present production of arecanut in the world is about 1.13 million tonnes from an area of 0.91
million ha. India ranks first in both area and production of the crop. The overall average yield per hectare
has improved from 843 kg/ha during 1971 to 1558 kg/ha by the year 2016. Average yield of newly
released coconut varieties is around 120 nuts/ palm/ year which is double the national average of 60
nuts/ palm/ year. By adopting the new varieties, the existing crop productivity levels can be enhanced
to the tune of 100% in terms of nut/copra yield. In terms of Gross Value Output, coconut contributes
Rs. 95000 million to the national income. Coconut industry provides livelihood to about twelve million
people in India. Coconut tree is called as "Kalpa Vriksha" which essentially means that all parts of a
coconut tree is useful in one way or the other. Coconut palms have many uses; their leaves are used
for thatching traditional houses, making sheds, baskets, and the husk for making coir and other coir
products. The shell is used for making charcoal and activated carbon, ladles and spoons, and fruits for
making copra and coconut oil and other value added products. Coconut is a staple ingredient in
traditional cuisines of many states. Technology for collection of fresh, hygienic and unfermented
coconut inflorescence sap (Kalparasa) has been developed. Other value added products like coconut
sugar, virgin coconut oil, coconut chips, dark chocolate, drinking chocolate, frozen delicacy etc. and
their adoption has improved the income of farmers and also generated employment in coconut sector..

5.6 MARKETING STRATEGY FOR COCONUT PRODUCTS

The increasing urbanization and income offers huge scope for marketing of Coconut based products.
Urban organized platforms such as departmental stores, malls, super markets can be attractive
platforms to sell well packaged and branded Coconut based products.

5.7 DETAIL PROJECT ASSUMPTIONS

This model DPR for Desiccated Coconut Manufacturing unit unit is basically prepared as a template
based on certain assumptions that may vary with capacity, location, raw materials availability etc. An
entrepreneur can use this model DPR format and modify as per requirement and suitability.The
assumptions made in preparation of this particular DPR are given in This DPR assumes expansion of
existing Coconut processing unit by adding Desiccated Coconut manufacturing line. Therefore, land
and civil infrastructures are assumed as already available with the entrepreneurs.

Herewith in this DPR, we have considered the assumptions as listed below in the tables of
different costs, which may vary as per region, seasons and machinery designs and supplier.

TABLE 5
PROJECT DETAILS

Detailed Project Assumptions


SR.NO Parameter Value
1 Capacity of the processing unit 1500Kg/Day coconut
2 Utilization of capacity 1st year
implementation, 60%
in 2nd year, 70% in 3rd
year and 80% in 4th
year onwards.
3 Working days per year 300 days
4 Working hours per day 8 hrs.
5 Interest on term and working capital loan 12%
6 Repayment period Seven years with one
year grace period is
considered.
7 Average prices of raw material Rs. 10/Kg.
8 Average sale prices Rs. 70/Kg.
9 Recovery rate 25%

TABLE 6
FIXED CAPITAL INVESTMENT
Sr. Particulars Size/ Quantit Tota Unit Amount
No Dimensions y (No) l Cost (Rs) Amoun
. / Area (Rs) t
Specificatio (Sq (Lakh)
n ft)
A Capital Investment 1 Plot 3.50
3,50,000
Capital Investment 3,50,000
3.50
B Machinery & Equipment’s
1 Cabinet type hot air drier 1 19000 1,90,000 1.90
with blower, motor and 0
other accessories
2 Disintegrator 1 10500 1,05,000 1.05
0
3 Vibratory sifting machine 1 50,000 50,000 0.50
4 Platform weighing 1 20000 20,000 0.20
balance
5 Packaging Machinery 2000 pack/ 1 65000 6,50,000 6.50
hr 0
6 Miscellaneous 1 10000 10,000 0.10
Machinery & 10,25,000 10.25
Equipment’s
C Other Costs
C1 Utilities & Fittings
1 Water 0.80
2 Power 80,000
Total
80,000 0.80
Other Fixed Assets
C2
1 Furniture & Fixtures
2 Electrical Fittings 80,000 0.80
Total
80,000 0.80
C3 Pre-operative
Expenses
1 Legal Expenses, Start -
up Expenses,
Establishment Cost,
Consultancy fees, Trials 1,00,000 1.00
and others
2 Plastic Tray Capacity
3 Electrical Fittings
Total 1.00
1,00,000
C4 Contingency 2.00
2,00,000
Total 2.00
2,00,000
C Total Cost
(C1+C2+C3+C4) 4,60,000 4.60
II Total Cost
18,35,000 18.35

TABLE 7
WORKING CAPITAL REQUIRMENTS
Sr. No. Description Unit Total Total Total
Quantity Rate/ Kg Cost Cost (Rs) Cost
(Rs) /Day / Month (Rs) /
Year
1 Coconut With husk 1500 10 15,000 3.75 37.50
2 Packaging Material (1 kg) 375 1.5 563 0.14 1.41
3 Labour 10 300/day 3,000 0.75 7.50
4 Supervisor / Manager 1 600/ day 600.00 0.15 1.50
5 Electricity 360 0.09 0.90
6 Transportation 500 0.13 1.25
7 Miscellaneous 300.00 0.08 0.75
Total Cost 20,322.50 5.08 50.81
Margin For Working 0.04 1.02 10
Capital 20%
TABLE 8 TOTAL PROJECT COST

Sr. No. Particulars Amount In Lakhs


i Land Development & Building Structure 3.50
ii Plant & Machinery 10.25
iii Other Fixed Assets 2.60
iv Working Capital Margin 1.02
v Contingency 2.00
vi Total Project Cost 19.37

TABLE 9 MEANS OF FINANCES

Sr. No. Particulars Amount In Lakhs


i Subsidy 10.00
ii Promoters Contribution 3.87
iii Term Loan 5.49
Total Means of Finance (1 to 3) 19.37

TABLE 10 EXPENDITURE, REVENUE AND PROFITABILITY


PARTICULA YEAR
RS
1st yr 2nd yr 3rd yr 4th yr 5th yr 6th yr
Capacity 0 0.6 0.7 0.8 0.9 1
A. INCOME
Sales of
Desiccated
- 39.77 46.86 54.09 61.46 68.97
coconut

Total
- 39.77 46.86 54.09 61.46 68.97

B.EXPENSE
S
Raw Material
- 22.50 26.78 30.90 35.10 39.38
Consumables
-
- - - - -
Packing cost
- 0.84 1.00 1.16 1.32 1.48
Transportatio
-
n cost 0.75 0.89 1.03 1.17 1.31
Direct
employee -
5.40 6.43 7.42 8.42 9.45
cost
Depreciation
- 2.35 2.04 1.77 1.53 1.33
Office Rent
Plant
Electricity -
0.54 0.64 0.74 0.84 0.95
Cost
Miscellaneou
-
s 0.45 0.54 0.62 0.70 0.79
Office
Expenses - 0.66 0.73 0.80 0.88 0.97
Telephonic
Expenses - 0.06 0.60 0.66 0.73 0.80
Indirect
Employee - 0.50 0.50 0.50 0.50 0.50
Repair &
Maintenance - 0.50 1.50 1.65 1.82 2.00
Audit,
Accounts &
- 0.44 0.44 0.48 0.53 0.59
Compliance
Insurance
0.5 1.5 1.5 1.5 1.5
Total Cost
- 35.49 43.58 49.22 55.04 61.03

Add :-
Opening
- 3.46 4.09 4.72 5.36
Stock

Less :-
Closing Stock - 3.46 4.09 4.72 5.36 6.02
Cost of
Sales - 32.03 42.95 48.59 54.40 60.37

GROSS
PROFIT - 7.74 3.91 5.50 7.06 8.60
- 19.45% 8.35% 10.16% 11.49% 12.47%
FINANCE
EXPENSES
Interest on
Term Loan 0.58 0.53 0.45 0.37 0.28 0.20

Interest On
CC 0.08 0.08 0.08 0.08 0.08
Total Interest
0.58 0.61 0.53 0.44 0.36 0.28
PROFIT
-
BEFORE
0.58 7.13 3.39 5.05 6.70 8.32
TAX

INCOME -
TAX (30%) 0.17 2.14 1.02 1.52 2.01 2.50

PROFIT -
AFTER TAX 0.40 4.99 2.37 3.54 4.69 5.82

TABLE 11 REPAYMENT SCHEDULE


Ye Outstandi Disburs Total Surplus Interes Repaym Tota o/s Balan
ar ng loan at e- ment outstandi for t ent of l Loan ce left
start of ng Loan repaym payme principal outg at the
yr. ent nt o end of
the yr.

1 -0.00 5.49 0.61 0.58 0 0.58 5.49 0.04


5.49

2 5.49 5.49 0.59 0.53 0.78 1.32 4.71 -0.73

3 4.71 4.71 0.76 0.45 0.78 1.23 -0.47


3.92

4 3.92 3.92 1.65 0.37 0.78 1.15 3.14 0.50

5 3.14 3.14 2.65 0.28 0.78 1.07 2.35 1.58

6 2.35 2.35 3.48 0.20 0.78 0.99 1.57 2.50

7 1.57 1.57 3.71 0.12 0.78 0.90 0.78 2.80

8 0.78 0.78 4.69 0.04 0.78 0.82 - 3.87


TABLE 12 ASSETS DEPRECIATION
PARTICULAR YEAR
S
1st yr 2nd yr 3rd yr 4th yr 5th yr 6th yr 7th yr 8th yr
Land &
Building
Structure
Opening Bal.
3.50 3.15 2.84 2.55 2.30 2.07 1.86
Additions
3.50
Less :-
Depreciation @ 0.35 0.32 0.28 0.26 0.23 0.21 0.19
10%

Closing Bal.
3.50 3.15 2.84 2.55 2.30 2.07 1.86 1.67
YEAR
PARTICULAR
S
1st yr 2nd yr 3rd yr 4th yr 5th yr 6th yr 7th yr 8th yr
Plant &
Machinery
Opening Bal.
10.25 8.71 7.41 6.29 5.35 4.55 3.87
Additions
10.25
Less :-
Depreciation @ 1.54 1.31 1.11 0.94 0.80 0.68 0.58
15%

Closing Bal.
10.25 8.71 7.41 6.29 5.35 4.55 3.87 3.29
YEAR
PARTICULAR
S
1st yr 2nd yr 3rd yr 4th yr 5th yr 6th yr 7th yr 8th yr
Other
Required
Material &
Accessories
Opening Bal.
4.60 4.14 3.73 3.35 3.02 2.72 2.44
Additions
4.60
Less :-
Depreciation @ 0.46 0.41 0.37 0.34 0.30 0.27 0.14
10%
Closing Bal.
4.60 4.14 3.73 3.35 3.02 2.72 2.44 2.30
TOTAL -
DEPRECIATIO
N
YEAR
PARTICULAR
S
1st yr 2nd yr 3rd yr 4th yr 5th yr 6th yr 7th yr 8th yr
Land & -
Building 0.35 0.32 0.28 0.26 0.23 0.21 0.19
Structure
Plant & -
Machinery 1.54 1.31 1.11 0.94 0.80 0.68 0.58
-
-
Other -
Required 0.46 0.41 0.37 0.34 0.30 0.27 0.14
Material &
Accessories
TOTAL -
DEPRECIATIO 2.35 2.04 1.77 1.53 1.33 1.16 0.91
N

TABLE 13 FINANCIAL ASSESSMENT OF PROJECT


YEAR
1st yr 2nd yr 3rd yr 4th yr 5th yr 6th yr 7th yr 8th yr
Cost
18.35 35.49 43.58 49.22 55.04 61.03 61.79 62.01
Benefit
- 39.77 46.86 54.09 61.46 68.97 69.66 70.36
Discounting
Rate 0.91 0.83 0.75 0.68 0.62 0.56 0.51 0.47
P.V Cost
16.68 29.33 32.74 33.62 34.18 34.45 31.71 28.93
P.V Benefit
- 32.87 35.21 36.94 38.16 38.93 35.75 32.82

Total P.V Cost 241.64


Total P.V Benefit 250.68
Benefit Cost Ratio 1.04
TABLE 14 BREAK EVEN ANALYSIS
PARTICULARS Year
1st yr 2nd yr 3rd yr 4th yr 5th yr 6th yr 7th yr
Annual Production
in Kg - 56,250 65,625 75,000 84,375 93,750 93,750
Revenue
- 39.77 46.86 54.09 61.46 68.97 69.66
Selling Cost Per -
Kg 70.70 71.41 72.12 72.84 73.57 74.31

Office & General


Expenses - 1.16 1.77 1.94 2.14 2.35 2.59
Depreciation
- 2.35 2.04 1.77 1.53 1.33 1.16

Total Fixed Cost


- 3.51 3.80 3.71 3.67 3.68 3.75
Total Fixed Cost -
Per Kg 6.24 5.79 4.95 4.35 3.93 4.00

Total Variable -
Cost 29.49 35.10 40.50 46.01 51.61 51.61
Variable Cost Per -
Kg 52.43 53.48 54.01 54.53 55.06 55.06

Contribution -
10.28 11.76 13.59 15.45 17.36 18.05
Contribution per -
Unit 18.27 17.93 18.11 18.31 18.52 19.25
Contribution in % - 26% 25% 25% 25% 25% 26%

Break Even Point -


kg 0 0 0 0 0 0
Break Even Point -
Rs 2.77 3.05 2.96 2.92 2.94 3.01
Break Even In % -
34.14 32.32 27.30 23.76 21.23 20.76

Margin Of Safty -
37.00 43.81 51.13 58.54 66.04 66.66
FIGURE 2
PIA CHART FOR BETTER UNDERSTANDING OF EXPENCES OF EACH
HEAD

Cabinet type hot air drier


with blower, motor and
other accessories
19%
Disintegrator
10%

Vibratory
sifting
machine
5%

Platform
Packaging weighing
Machinery balance
64% 2%

5.1 MACHINERY SAPPLIERS

There are many machinery suppliers available within India for processing machineries and
equipment. Some of the suppliers are:

1.
2.
3. .
FIGURE 3
PLANT LAYOUT
PROJECT REPORT

FOR

ESTABLISHMENT

OF

VIRGIN COCONUT OIL

PROCESSING UNITS
Under the Agriculture Infrastructure Fund Scheme
(Ministry of------------------------------------------)

AT -----------------
------

SUBMITTED BY

Name &Address
COCONUT PROCESSING MACHINE
Sl. No Particulars Page No

1 PROJECT AT A GLANCE

2 INTRODUCTION

3 DETAILS OF PLANT & MACHINERY

4 DETAILS OF RAWMATERIAL

5 MAN POWER REQUIREMENT

6 COMPUTATION OF WORKING CAPITAL

7 CAPITAL INVESTMENT & SOURCE OF FINANCE

8 SALES TURNOVER & PROFIT

9 REPAYMENT SHEDULE OF TERM LOAN

10 COMPUTATION OF DEPRECIATION

11 PROJECTED PROFITABILITY STATEMENT

12 COMPUTATION OF BREAK EVEN POINT

13 PROJECTED BALANCE SHEET

14 PROJECTED CASH FLOW STATEMENT

15 CALCULATION OF DSCR

ANNEXURE

MEMBERSHIP & SHARE CAPITAL A

BOARD OF DIRECTORS B

DETAILS OF STAFF C

ESTIMATE OF BUILDING D

FURNITURE & EQUIPMENT E

PRILIMINARY & PREOPERATIVE EXPENSES F

FINANCIAL REQUIREMENT G

SOURCE OF FINANCE H
PROJECT AT A GLANCE
-------------------------------SERVICE CO-OPERATIVE
1 Name Of the Bank BANKLTD.No-------,

2 Location VADASERIKARA, PATHANAMTHITTA

3 Organization Co-Operative Sector


MANUFACTURING OF VIRGIN
4 Activity COCONUT OIL

5 Project Cost

i Land & Building OWN 25,12,101.00

ii Plant & Machinery 57,00,000.00

iii Working capital 39,00,000.00

1,21,12,101.00
TOTAL

6 Means of Finance

i Bank’s Contribution 27,71,210.10


Term loan from NABARD for
ii Building 90% 22,60,890.90
Term loan from NABARFD for
iii Plant & Machinery 90% 51,30,000.00

iv Working Capital Loan 50% 19,50,000.00

TOTAL 1,21,12,101.00

7 Power

8 Employment 12 Nos

9 Marketing Area

10 Installed Capacity 528.31 Lakhs

11 Average Profit per year Rs. 23,24,311.84

12 Number of shifts One

13 Expected Capacity Utilisation 60.00%

14 DSCR 2.47

15 Return on investment 19.19% First year

16 Break Even Point 41%


Page 1

M/s ------------------- Co operative Bank Ltd.N

M/s.----------------- Service Co operative Bank Ltd.No.--------


was formed and registered under the ---------------- Co-operative
Societies’ on ----------- and started functioning on -------------------.
The society had its humble beginning with a share capital base of Rs.
125/- contributed by 30 members. The noble object behind the
formation of the Society was to improve the economic and social
status of the members of the society and to formulate and implement
schemes to encourage thrift, self-help and co-operation among
members. Needless to describe that the share capital base of the bank
as on 31-03-2021 has reached 104.09 lakhs contributed by 8662
members and the government contribution is to the tune of Rs
23.53 lakhs. It is worth mentioning that M/S ------------ Service Co-
Operative bank is one of the best performing credit Co-Operative
institution in --------- Taluk . The Bank could extend various type of
assistance to the members depending on their requirement. The major
business activities of the bank are mobilization of deposits and
disbursement of loans and advances. In order to provide the public at
large, the society has established a Neethi Medical Store, Neethi store,
Manure depot and an Agro shop . The Bank is running 5 Nos of
G.D.C.S for the benefit the members. The Bank is having a branch at -
-----------------
Page 2

0.2 Area of Operation

The area of operation of the bank is confined to wards 4 to 8 of -


--------------- Grama Panchayat in --------- Taluk ---------------District.
However mortgage loans can be issued to members on the mortgage
of landed property in the Taluks of------------,---------- and -----------

0.3 Objects of the society

The avowed object of the bank is to provide financial assistance,


facilities and other services to small and marginal farmers, village
small and cottage industries, small business entrepreneurs so as
improve their production and thereby to assure them a reasonable
income. Apart from the main object mentioned above, following are
the other important objectives mentioned in clause 3 of the bye-laws
of the bank.

(1) To advance short term, medium term and long term loans to
members depending on their requirement
(2) To encourage thrift, self help and co operation among the
members and to formulate schemes to promote them

(3) To Procure and supply to the members seeds, manure, fertilizers,


pesticides agricultural implements, house hold articles etc.

(4) To arrange for the sale of agricultural produce of the members


through marketing societies.

(5) To prepare and implement agricultural production plan for the

members.
Page 3

(6) To own or rent go downs for the storage of the agricultural


produce of the members.

(7) To assist the members to procure and produce new verity of


seeds.

(8) To assist the members to establish bio-manure, composite manure


plant either individually or jointly in the area of operation of the
society,

(9) To arrange for the purchase of modern agricultural implements


and such other equipments as are required by the members and to let
them on rental basis.

(10) To arrange for the distribution of high breed domestic animals


such as oxen, goats and cock for promotion of domestic animals

(11) To act as agents for the supply of manure, fertilizers, pesticides


agricultural implements etc.

(12) To arrange for the purchase of movable and immovable assets


required by the bank.

(13) Under special circumstances under take the work of irrigation


and land development for the benefit of the members with permission
of the Government.

(14) To undertake contract works of Panchayats and others.


Page 4

(15) To arrange necessary funds for the attainment of the above


objects either by way of deposits or by loan or otherwise from
members and well wishers

(16) To undertake all other activities calculated to further the objects


mentioned (1) to (15) above.

(17) To run fair price shops

(18) To run consumer store for the supply of domestic items of daily
use
(19) To run chitties with the prior sanction of the Joint Registrar of Co
operative societies.
(20) To undertake various projects of government /quasi government
organizations with the sanction of the Registrar
(21) To formulate various schemes through center/state government
agencies for the benefit to the members.
(22) To open and operate branches in the area of operation of the
bank.
(23) To establish own medical store or act as franchise for the
distribution of medicines’
(24) To establish small processing units

25) To establish tourist information centers at tourist destinations/


pilgrim center either own or jointly with state Government
(26) To establish Neethi clinical diagnostic centers and other health
care centers for the benefit of the members.
(27) To undertake high tech banking facilities such as ATM,NEFT RTGS
etc in association with Nationalized banks/District Co operative bank.
(28) To run library for the benefit of members.
Page 5

0.4 Membership and Share Capital

The bank had its humble beginning with a share capital base of
Rs. 125/-contributed by the 30 farmer members. In order to fulfill the
desired objective of the founders, the bank had developed its activities
so as to create a respectable position in the minds of its members.
Needless to describe that the share capital of the bank as on 31-3-
2021 stood at 104.09lakhs contributed by 8662 members. The
Government participation in the share capital is to the tune of 23.54
lakhs. Details are furnished in Annexure-A

0.5 Management

The management of the bank is vested with a Board of Directors


consisting of 11 members. The president and other members of the
Board heal from near by places in the area of operation of the bank
Their dynamic leadership is of immense help for the rapid development
of the bank. The Board Directors are earnest to urge to diversify their
business activities so as to achieve fruitful results. The present Board
of Directors under the chairman ship of-------------- took charge on 1
and their term of office is for five years. Details of the present Board of
Directors are furnished in Annexure-B
Page 6

0.6 Establishment

At present 10 employees are working in the society and their


dedicated service has helped the bank to reach the present position.
Details of staff are furnished in Annexure-C

0.7 Present Scenario

As has been stated earlier, ---------- Service Co operative Bank


Ltd.No is one of the best performing credit institution in --------Taluk
of------------ District.. Apart from fulfilling the financial requirements
of the members, the bank is committed in meeting the socio-economic
well being of the members of the society. As per the tentative financial
statements of the bank for the year 2020-2021 the bank is having a
deposit of Rs-3293.43- lakhs and the loan outstanding is Rs.2562.39
lakhs. The profit earned by the bank during the year 2020-2021 is
Rs.2.13 lakhs. The working capital of the society as on 31-03-2021 is
Rs.3480.79 lakhs. The bank is having a branch at ------------. In the
non-banking sector the bank is having a Neethi medical store for the
distribution of all medicines at a very fair and reasonable price. Yet
another venture in the non-banking sector is the establishment of a
Neethi store from where people can get all domestic items for their
daily use. During last year the bank has established an Agro shop for
the sale of agricultural equipment and implements required by the
farmers. The business achievements made by the society during the
last five years are furnished below:-
Page 7

Achievements made by the society during the last five years

(Amount in lakhs)

Sl.No Particulars 2016-17 2017-18. 2018-19 2019-20 2020-2021

1 Members 8229 8264 8260 8465 8662

2 Share Capital 70.14 76.12 91.36 101.65 104.09


3 Deposits 2817.32 3204.78 3162.95 3051.30 3293.43

4 Borrowings 41.15 3.09 191.50 237.96 122.23


5 Loans to members 2221.95 2452.05 2540.17 2544.65 2562.39

5 G.D.C.S Sala 7.50 8.00 8.50 3.00 2.50


6 Neethi medical 95.42 95.87 109.24 114.25 141.72
sales
7 Neethi store Sales 14.23 9.08 5.18 11.08 19.53

Manure Sales 32.20 33.32 17.46 36.21 54.72


7 Trade profit 7.82 8.52 9.25 10.26 12.37

8 Working Capital 2937.31 3200.00 3205.00 3340.93 3480.73


Page 8

0.8 The Proposal

Majority of the members of the bank are small and marginal


farmers. The main source of livelihood of the people in the area of
operation of the bank is agriculture. Apart from paddy cultivation cash
crops like rubber, pepper, coconut and other vegetables are also
largely grown in the area of operation of the bank.. The bank intends
to procure and process the coconut from the famers. By processing the
coconut the bank intends to produce cold pressed virgin coconut oil
which is having a high demand in the market. The other agricultural
crops that are largely grown in the area are Banana, Tapioca, Elephant
yam, Ginger, Yan taro, Taro root etc. The main problem faced by the
farmers is that they are not getting fair and reasonable price for their
agricultural produce. By implementing the project the bank anticipates
to procure the vegetables from the members and market the same
through a retail outlet to be opened by the bank. This will ensure a
better priceto the farmers for their agricultural produce.
Page 9

0.9 Land and Building

The Bank is having seven cents of land at -------------- where


the branch of the bank is functioning. Since the building is pretty old,
the management of the bank intends to demolish the building and
construct a double storied building having a plinth area of 3656 sq.ft.
After the construction of the double storied building the bank proposes
to house the branch office to the 1st floor of the building. In the ground
floor separate compartments will be set apart for the proposed virgin
coconut processing unit and for the honey processing unit. The bank
also intends to run a retail out let for the sale of vegetables procured
from the farmers directly. For this the bank intends to occupy a
rented building at ----------------

1.0 Civil Construction Works

The bank intends to construct a double storied building. The


ground floor will be having separate compartments to house the honey
Processing unit and the vegetable dryer unit and the coconut oil mill
The first floor will be utilized to house the branch office of the bank
and the proposed Agro training center It is estimated that an amount
of Rs 25.12 lakhs is required for civil construction works including
plumbing, electrification and painting. Details are furnished in
Annexure-D.
Page 10

1.1 Furniture and Equipment

For the proposed retail outlet the bank may require certain
furniture . It is estimated that Rs 1.50 lakh is required for the same.
Details are furnished in Annexure E

1.2 Plant and Machinery

As has been stated in the aforesaid paras, by the implementation


of the proposed scheme, the bank proposes to establish a cold pressed
virgin coconut oil production unit. For the successful implementation of
the project the bank may require certain machineries and equipment
such as oil expeller, cold press oil expeller, dryer for coconut oil
processing unit. It is estimated that Rs 57 lakh is required. Details are
furnished in Page no. 16 & 17

1.3 Packing Material

The bank intends to market the proceed coconut oil and honey in
attractive Pet bottles.
Page 11

1.4 Working Capital Requirement

Under the proposed scheme the bank intends to undertake


activity of Virgin Coconut Oil mill. For the cold press virgin oil
processing unit the bank may collect coconut from farmers dry them
and process them using cold press to produce virgin coconut oil. As
mentioned earlier in order to safe guard and protect the interest of the
farmers the bank will procure the vegetables directly from the farmers
and sell the same to the customers through the proposed retailed
outlet to be opened by the bank. More over people can purchase virgin
coconut oil from the proposed retail outlet. The working Capital
requirement is estimated at Rs.39 lakhs. Computation of working
capital requirement is furnished in Pages No.18 & 19

1.5 Preliminary and Pre Operative Expenses.

For implementing the project, the bank may have to incur certain
preliminary and pre operative expenses such as security deposit to
KSEB for power allotment and other statutory levies. It is estimated
that Rs 7 lakhs is required for the same. Details are provided in
Annexure-F
Page 12

1.6 Implementation of the Project

By implementing the project the bank intends to procure raw


coconut from members and dry the coconut by using the dryer and the
process the dried coconut using cold press machine and produce the
virgin coconut oil and hygienically packed for sales.

1.7 Marketing strategy

By implementation of the project, the bank intends to market the


virgin coconut oil through the retail out let of the bank. More over the
bank also anticipates to sell organic fresh vegetables procured directly
from farmers though this retail outlet product of coconut. The bank
also plans to distribute the virgin coconut oil through the various
consumer stores in the area and nearby places of the bank.

1.8 Employment Potential

By implementation of the project the bank anticipates to provide


gainful employment to 12 persons directly and more people indirectly.
By implementing the project the bank wishes to bring more youth to
the agricultural sector and thereby to improve the agricultural
production in the area. Details of man power requirement are
furnished in Page No.18
Page 13

1.9 Economic Viability

The major crops that are being cultivated in the area of


operation of the bank are Paddy and coconut and various types of
vegetables. Yet another activity in which people is engaged is
collection of honey . By implementing the project the bank expects to
attract more people to the agricultural sector especially the youth. This
will in turn bring more area of land for agricultural cultivation. Since
majority of the population in the area of operation of the bank depends
on agriculture for their lively hood, any development in the agricultural
sector will reflect in the improvement of the socio-economic condition
of the people

2.0 Financial Requirement

For the successful implementation of the scheme the bank may


require financial assistance to the tune of Rs,121 lakhs details of
which are furnished in Annexure G
Page 14

2.1 Source of Finance

NABARD has introduced a novel scheme of providing financial


assistance to to co operatives to convert them into Multi Service
Center (MSC) under Special Refinance Facility (SRF). The bank intends
to avail the financial assistance under this scheme to implement the
proposed project. The pattern of assistance under the scheme is as
follows:-

90% of the project cost as loan under AIF

scheme

10% of the project cost by the bank.

The Net Disposable Resources of the bank is positive and the bank
intends to mobilize its contribution to the proposed project from out of
its NDR, Details are furnished in Annexure- H

2.2 Profitability Statement

By implementing the proposed project, the bank anticipates to


achieve a sales turn over of Rs 317 lakhs during the first year of
implementation of the scheme followed by an increase in the volume
of sales by 25% in the succeeding years. Detailed Profitability
statement for the first seven years is furnished in Page No. 24
Page 15

2.3 Repayment Schedule of Loan

As per the norms for availing the financial assistance from


NABARD under the scheme the bank has to repay the loan amount
over a period of seven year with interest rate@ 4%. Detailed
repayment schedule of loan is furnished in page no.22

2.4 Financial Statements

Page No

Break Even Point 25


Cashflow 27
DSCR 28

Conclusion

The project has enough scope in all over -------------------


District and nearby areas. It can be seen from the details furnished
above, that this project is economically viable and financially sound
and employment generating one.
The economics of the project is detailed as follows.
Page 16

ECONOMICS OF THE PROJECT

1 LAND & BUILDING Own 25,12,101.00

2 PLANT & MACHINERY PRICE GST TOTAL

AUTOMATIC HEAT PUMP DRYER 1300000 234000 15,34,000.00


OIL EXPELLER 6 BOLT TRIPLE GEAR BED
i TYP SPF MAKE 230000 41400 2,71,400.00

ii FILTER PRESS SPF MAKE 115000 20700 1,35,700.00

iii COPRA CUTTER WITH PLATFORM 32000 5760 37,760.00

iv FOUNDATION BOLTS, BELT, PULLEYS 16000 2880 18,880.00

v COPRA DRYER- IMPERIAL MODEL 145000 26100 1,71,100.00


15 HP ELECTRIC MOTOR-960RPM
vi CROMPTON FOR EXPELLER 56400 10152 66,552.00
3 HP ELECTRIC MOTOR CROMPTON FOR
vii CUTTER 14250 2565 16,815.00
2 HP ELECTRIC MOTOR CROMPTON FOR
viii FILTER 11400 2052 13,452.00
1 HP PUMP SET -CROMPTON FOR OIL
ix TANK, 9570 1723 11,293.00

x FILTER TRAY, PUMP TRAY 7040 1267 8,307.00

xi SS PREMIUM OIL EXTRACTION MACHINE 3,12,700.00

xii HONEY FILLING MACHINE 2,65,500.00

Xiii TRANSPORTATION, INSTALLTION etc 53,100.00

47,10,159.00
Page 17

Balance B/d 47,10,159.00


SEMI AUTOMATIC TWO HEAD VOLUMETRIC
xvi FILLING MACHINE 1,41,600.00

xvii FURNITURE & EQUIPMENT 1,50,000.00

xviii ELECTRICAL & PREOPERATIVE EXPENSES 7,00,000.00

TOTAL 57,01,759.00

Say Rs. 57,00,000.00


Page 18

3 Raw Material Required for one month

A For virgin coconut oil Days Rate

i Coconut 25 1000 Kg 40.00 10,00,000.00

ii Pet bottle 25 1200 Nos 3.50 1,05,000.00

20,000.00
Packing materials

TOTAL 20,68,750.00

4 Staff & Labour per month Nos

i Supervisors 2 40,000.00

ii Factory Workers 8 80,000.00

iii Depo Manager 1 15,000.00

iv Sales Assistant 1 10,000.00

Total 12 1,45,000.00

Add 20% benefit 29,000.00

Grand TOTAL 1,74,000.00


Page 19

5 Other Expense per month

i Electricity Charges 50,000.00

ii Insurance 2,500.00

iii Communication 2,500.00

iv Repair & Maintenance 17,500.00

v Other Unforeseen expenses 20,000.00

TOTAL 92,500.00

6 Working Capital

i Stock of Raw Materials 25 days 20,68,750.00

ii Raw Materials in Process 2 days 1,65,500.00

iii Stock of Finished Goods 8 days 6,62,000.00

iv Credit Sale 9 days 7,44,750.00

v One Month working expenses 2,66,500.00

TOTAL 39,07,500.00

Say Rs. 39,00,000.00


Page 20

7 TOTAL CAPITAL INVESTMENTS

i Building Own 25,12,101.00

ii Plant & Machinery 57,00,000.00

iii Working Capital 39,00,000.00

TOTAL 1,21,12,101.00

8 SOURCE OF FINANCE

i Bank Contribution 27,71,210.10


ii Term loan from NABARD for Building 90% 22,60,890.90
Term loan from NABARFD for Plant &
iii Machinery 90% 51,30,000.00

iv Working Capital Loan 50% 19,50,000.00

TOTAL 1,21,12,101.00

9 Cost of Production per month

i Raw material 20,68,750.00

ii Staff & Labour 1,74,000.00

iii Other Expenses 92,500.00

iv Interest on Term Loan 4 % 24,636.30

v Interest on Working Capital Loan 4 % 6,500.00

vi Depreciation (Machinery) 15% 71,250.00

vii Depreciation (Building) 2.5% 5,233.54

viii Sales promotion expenses 5,000.00

TOTAL 24,47,869.85
Page 21

10 Sales Revenue Per month Kg Rs.

i Virgin Cocout oil 7500 190.00 14,25,000.00

TOTAL 26,75,000.00

Less wastage 33,437.500

TOTAL INCOME 26,41,562.50

11 Profit Per month 1,93,692.65

12 Profit per year 23,24,311.84

13 Net Profit 23,24,311.84

14 Return on Investment 19.19%

15 Return on Sales 7.33%

16 Debt Service Coverage Ratio 2.47


(for a repayment period of 7 years)
Page 22

REPAYMENT CHART OF TERM LOAN


Lakhs
Year 1 2 3 4 5 6 7

Opening balance 73.909 63.350 52.792 42.234 31.675 21.117 10.558

Repayment 10.558 10.558 10.558 10.558 10.558 10.558 10.558

Closing Balance 63.350 52.792 42.234 31.675 21.117 10.558 0.000

Interest Due 4% 2.956 2.534 2.112 1.689 1.267 0.845 0.422

Total Term Loan Dues 13.515 13.515 13.515 13.515 13.515 13.515 10.981
Page 23

DEPRECIATION OF PLANT & MACHINERY


Year 1 2 3 4 5 6 7

Opening balance 57.00 48.45 41.18 35.01 29.75 25.29 21.50

Depreciation @15% 8.55 7.27 6.18 5.25 4.46 3.79 3.22

Closing Balance 48.45 41.18 35.01 29.75 25.29 21.50 18.27

DEPRECIATION OF BUILDING
Year 1 2 3 4 5 6 7

Opening balance 25.12 24.49 23.88 23.28 22.70 22.13 21.58

Depreciation @2.50 % 0.63 0.61 0.60 0.58 0.57 0.55 0.54

Closing Balance 24.49 23.88 23.28 22.70 22.13 21.58 21.04


Page 24
PROJECTED PROFITABILITY STATEMENT
Sales Revenue per year Lakhs
Year 1 2 3 4 5 6 7
Installed Capacity 528.31 528.31 528.31 528.31 528.31 528.31 528.31
Capacity Utilisation 0.60 0.65 0.70 0.75 0.80 0.85 0.90
Production 316.99 343.40 369.82 396.23 422.65 449.07 475.48
Total Sales 316.99 343.40 369.82 396.23 422.65 449.07 475.48
Cost of Production
Year 1 2 3 4 5 6 7
Raw materials 248.25 270.10 291.16 313.29 334.13 355.18 376.49
Staff & Labour 20.88 23.75 26.13 27.43 30.72 32.57 34.20
Other Expences 11.10 11.66 13.18 14.83 15.57 17.37 19.31
Interest on Term Loan 2.96 2.53 2.11 1.69 1.27 0.84 0.42
Interest on Working
0.78 0.78 0.78 0.78 0.78 0.78 0.78
Capital Loan

Depreciation of Plant &


9.18 7.88 6.77 5.83 5.03 4.35 3.76
Machinery and building
Sales Promotion
0.60 0.66 0.73 0.80 0.88 0.97 1.06
Expenses
Total Cost of production 293.74 317.36 340.86 364.65 388.37 412.05 436.02
Profit per year 23.24 26.05 28.96 31.58 34.28 37.02 39.46

Net profit 23.24 26.05 28.96 31.58 34.28 37.02 39.46


Return on investments 19.19% 21.51% 23.91% 26.08% 28.30% 30.56% 32.58%
Return on sales 7.33% 7.59% 7.83% 7.97% 8.11% 8.24% 8.30%
DSCR 2.47 2.63 2.81 3.00 3.22 3.46 3.71
Page 25 ANNEXURE - J

Break Even Analysis at a normal year of operation at 70% Capacity utilisation

A Fixed & Semivariable Costs

i 50 % of other Expenese 6.59

ii Interest on Term Loan 2.11

iii Depreciation 6.77

iv Staff & Labour 26.13

TOTAL 41.60

B Variable Costs

i Raw Materials 291.16

ii 50 % of Other expenses 6.59

iii Interest of Working Capital Loan 0.78

iv Sales Promotion Expenses 0.73

TOTAL 299.26

C Contribution 70.56

D Break Even Point

i In terms of Capacity Utilisation 41 %

ii In terms of Production/ Sales Rs.218.04


Page 26
PROJECTED BALANCE SHEET
LIABILITIES Lakhs

Year Const. Period 1 2 3 4 5 6 7

Capital 27.712 77.925 105.949 136.074 165.899 197.581 230.742 264.233


Reserve &
surplus 0.000 32.421 33.927 35.732 37.416 39.307 41.363 43.225
Term Loan from
NABARD 73.909 63.350 52.792 42.234 31.675 21.117 10.558 0.000
Working Capital
Loan 19.500 19.500 19.500 19.500 19.500 19.500 19.500 19.500

TOTAL 121.121 193.197 212.169 233.540 254.490 277.504 302.164 326.957

Assets
Lakhs
Year Const period 1 2 3 4 5 6 7

Fixed assets 82.121 72.943 65.063 58.289 52.456 47.425 43.078 39.314

Stock in trade 0.000 62.063 67.524 72.791 78.323 83.531 88.794 94.122
Cash in hand/
Bank 39.000 58.191 79.581 102.460 123.711 146.548 170.292 193.522
TOTAL 121.121 193.197 212.169 233.540 254.490 277.504 302.164 326.957
Page 27
Cash - Flow Statement
Lakhs
Const. Period Ist Year IInd year IIIrd year IVth year Vth year VI th year VII th year
A-Source of Funds
Net profit before taxes with
1 interest added back Rs. - Rs. 26.20 Rs. 28.58 Rs. 31.07 Rs. 33.27 Rs. 35.54 Rs. 37.86 Rs. 39.88
2 Increase in share capital Rs. 27.71 Rs. - Rs. 1.10 Rs. 1.19 Rs. 1.29 Rs. 1.39 0.65 0.68
3 Increase in Term Loan Rs. 73.91 Rs. - Rs. - Rs. - Rs. - Rs. - Rs. - Rs. -
Increase in Working Capital
4 Loan Rs. 19.50 Rs. - Rs. - Rs. - Rs. - Rs. - Rs. - Rs. -
5 Depreciation Rs. - Rs. 8.55 Rs. 7.27 Rs. 6.18 Rs. 5.25 Rs. 4.46 Rs. 3.79 Rs. 3.22

TOTAL Rs. 121.12 Rs. 34.75 Rs. 36.95 Rs. 38.44 Rs. 39.81 Rs. 41.40 Rs. 42.30 Rs. 43.79

B - Deposition of Funds
Increase in Capital
1 Expenditure Rs. 82.12 Rs. - Rs. - Rs. - Rs. - Rs. - Rs. - Rs. -
2 Increase in current Assets Rs. - Rs. - Rs. - Rs. - Rs. - Rs. - Rs. -
3 Decrease in Term Loan Rs. - Rs. 10.56 Rs. 10.56 Rs. 10.56 Rs. 10.56 Rs. 10.56 Rs. 10.56 Rs. 10.56
Decrease in Working Capital
4 Loan Rs. - Rs. - Rs. - Rs. - Rs. - Rs. - Rs. - Rs. -
5 Taxation Rs. - Rs. - Rs. - Rs. - Rs. - Rs. - Rs. - Rs. -
6 Drawings Rs. - Rs. 5.00 Rs. 5.00 Rs. 5.00 Rs. 8.00 Rs. 8.00 Rs. 8.00 Rs. 10.00
TOTAL Rs. 82.12 Rs. 15.56 Rs. 15.56 Rs. 15.56 Rs. 18.56 Rs. 18.56 Rs. 18.56 Rs. 20.56

Accumulation of Net Profit


C- opening balance Rs. - Rs. 39.00 Rs. 58.19 Rs. 79.58 Rs. 102.46 Rs. 123.71 Rs. 146.55 Rs. 170.29
D - net cash balance Rs. 39.00 Rs. 19.19 Rs. 21.39 Rs. 22.88 Rs. 21.25 Rs. 22.84 Rs. 23.74 Rs. 23.23
E- Closing Balance Rs. 39.00 Rs. 58.19 Rs. 79.58 Rs. 102.46 Rs. 123.71 Rs. 146.55 Rs. 170.29 Rs. 193.52
Page 28
CALCULATION OF DSCR ANNEXURE- I

IN FLOW Ist Year IInd year IIIrd year IVth year Vth year VIth year VIIth year

Net profit 23.24 26.05 28.96 31.58 34.28 37.02 39.46


1
Depreciation of 9.18 7.88 6.77 5.83 5.03 4.35 3.76
2 Plant & Machinery
Interest on Term 2.96 2.53 2.11 1.69 1.27 0.84 0.42
3 Loan

A 35.38 36.46 37.84 39.10 40.57 42.21 43.65

OUT FLOW Ist Year IInd year IIIrd year IVth year Vth year VIth year VIIth year

Repayment of 10.56 10.56 10.56 10.56 10.56 10.56 10.56


1 Term Loan
Interest on Term 2.96 2.53 2.11 1.69 1.27 0.84 0.42
2 Loan
Interest on 0.78 0.78 0.78 0.78 0.78 0.78 0.78
3 Working capital

B 14.29 13.87 13.45 13.03 12.61 12.18 11.76

DSCR (A/B) 2.47 2.63 2.81 3.00 3.22 3.46 3.71

AVERAGE DSCR 3.12


ANNEXURE A Rs. IN LAKHS

DETAILS OF MEMBERSHIP AND SHARE CAPITAL AS ON 31-03-2021

SL NO. OF NO. OF
PARTICULARS AMOUNT
NO. MEMBERS SHARES

1 INDIVIDUALS A CLASS 6915 160912 80.45

2 INDIVIDUALS B CLASS 1740 1000 0.10

3 GOVERNMENT 7 23540 23.54

TOTAL 8662 185452 104.09


ANNEXURE - B
DETAILS OF BOARD OF DIRECTORS

SL
NAME OF DIRECTORS DESIGNATION
NO.

1 PRESIDENT

2 VICE PRESIDENT

3 DIRECTOR

4 DIRECTOR

5 DIRECTOR

6 DIRECTOR

7 DIRECTOR

8 DIRECTOR

9 DIRECTOR

10 DIRECTOR

11 DIRECTOR
ANNEXURE - C
DETAILS OF STAFF AS ON 31-03-2021

SL
NAME DESIGNATION
NO.

1 SECRETARY

2 INTERNAL AUDITOR

3 SR. CLERK

4 JR. CLERK

5 JR. CLERK

6 ATTENDER

7 PHARMACIST

8 P T SWEEPER

9 COLLECTION AGENT

10 COLLECTION AGENT
k,Koratty P.O., Thrissur Dist., Kerala
State, South India. Pin-680309.

Regd office & works:


XI/368, Near Ap

Manufacturers of Machines & Plants for Pharmaceutical, Food, Beverages, cosmetic & chemical applications since 2000.
GSTIN : 32ACZPJ8003F1ZL
Quote No: APE/QTN/21/11/1067
Page 1 3

Date: 11-11-2021
of
To
The Secretary,
Kerala-689 662

Sir,
SUB: Quotation for Semi-Automatic Two Head Volumetric Filling Machine (For Oil) with VFD
We thank you for your recent enquiry and have extreme pleasure in submitting our quotation
for your consideration.
We are confident that our offer is in line with your requirement and looking forward to receive
your valuable order.

We assure you our complete service and support all the time.

Regards

(Proprietor)
Regd office & works: Branch (CNC Tool Room):
XI/368, Near Apollo Tyres, III/644-C, Pratheeksha Building,
Perambra P.O., Thrissur Dist., Kinfra Park,Koratty P.O., Thrissur Dist.,
Kerala State, South India.Pin-680689. Kerala State, South India. Pin-680309.

Manufacturers of Machines & Plants for Pharmaceutical, Food, Beverages, cosmetic & chemical applications since 2000.
GSTIN : 32ACZPJ8003F1ZL
Quote No: APE/QTN/21/11/1067
Page 2 of 3

1. Semi-Automatic Two Head Volumetric Filling Machine (For Oil) with VFD
Mode of operation Semi-Automatic
No of Filling Head provisions 2 Nos
No of removable Syringes 2Nos of 1000ml each
available with Machine
Filling Accuracy ± 1ml
Material of Construction SS Grade: AISI 304 for SS contact parts
SS Grade: AISI 304 for other SS parts
Body: Rigid MS Structure frame fully cladded with SS304
sheet.
Machine Motor 0.5 HP
Speed controlled by VFD
Power Supply Single Phase, 220V, 50Hz AC Supply.
Basic Price Per Unit Rs. 1,20,000.00
Reqd. Qty 1 No
Taxable Amount Rs. 1,20,000.00
GST @ 18% Rs. 21,600.00
Total Price Including GST Rs. 1,41,600.00
of Machines &
etic & chemical
MODEL DPR FOR RIPENING CHAMBER
Banana and Mango

NAME--------------------
ADDRESS------------------------

Contact Details---------------

PREPARED BY

----------------------------------
CONTENTS

Executive Summary

1. Introduction

2. Project Planning
2.1 Planning of Ripening Activity for Fruits
2.2 Proposed Backward Linkages & Farm Based Activity for Project
2.3 Planning of Activity, Area & Equipment Requirements
2.4 Marketing & Forward Linkages for Project
2.5 Site Evaluation & Layout Planning

3. Financial Assessment of Operations


3.1 Total Project Outlay
3.2 Source of Funds
3.3 Projected Revenues
3.4 Projected Expenses
3.5 Projected Profitability & Feasibility

4. Project Implementation Schedule

5. Potential, Social, Environmental Impact on Farmers & Risk Analysis

6. Annexures
6.1 Annexure 1 – Ripening Table for Fruits & Vegetables
6.2 Annexure 2 – Heat Load Calculations
6.3 Annexure 3 – Site Map
6.4 Annexure 4 – Building Layout Plan
6.5 Annexure 5 – Civil, Electrical & DG Work Quotation
6.6 Annexure 6 –Insulation, Refrigeration & Ripening Eqpt
6.7 Annexure 7 - Plastic Crates
6.8 Annexure 8 - Solar System
6.8 Annexure 9 – Term Loan Repayment & Interest Schedule
6.9 Annexure 10 – Depreciation Schedule
EXECUTIVE SUMMARY

Banana is one of the ideal and low cost food sources in the developing countries

like India, where most of the people rely upon the banana as food. In terms of

volumes they are the largest exported fruit, while they rank second after citrus

fruit in terms of value. Its year round availability, affordability, varietal range,

taste, nutritive and medicinal value makes it the favourite fruit among all classes

of people. It has also good export potential. India has emerged as the world’s

largest producer of banana.

Banana is harvested in un-ripe stage from the farm and brought to the markets

where it needs to be ripened before it is supplied to retailers. A well documented

package of practices need to be followed for the banana viz. cutting of loom into

hands, cleaning, grading, packaging and quality checking, followed by controlled

ripening in ripening room before it arrives at the different retail outlets for sale to

the consumers. The proposed unit will cater to the post-harvest management

requirement for handling bananas and ripening safely using modern technology

as prescribed by National Horticulture Board and FSSAI. The project proposes

providing ripening facility under controlled conditions for fresh green bananas of

appropriate physiological maturity brought from farm to the ripening chamber.

Further, the customers prefer banana of spotless yellow color, apart from its size.

Thus there is a critical need for proper ripening facility where the fruit can be
safely ripened in order to be sold at the most remunerative price from the

producers' perspective.

The proposed ripening room project has been planned at Village & Post –

Thrisur-------------- (Kerala.), to cater to requirements of fruit ripening and ensuring

complete Supply Chain Management of Banana in local markets. The project will

provide necessary impetus in the form of physical infrastructure and

technological input to the Banana growers, which in turn will develop good quality

and safe banana that can be supplied within Thrissur and nearby towns. The

proposed Banana ripening facility would have capacity of handling and ripening

120 MT of Banana and Mango at any point of time. It would be equipped with 4

nos ripening chambers to cater to the demand of the Thrissur and surrounding

markets.

The Project is proposed to be funded through a mix of own funds and assets

contributed by the promoters and bank loan covering term loan including back-

ended capital subsidy under scheme of AIF (Agriculture Infrastructure Fund) for

Post Harvest Management including Ripening Rooms. The promoter contribution

in the project is proposed at Rs -------------- lacs (10% of project cost) bank loans

of Rs ----------lacs (90% of project cost). The debt-equity ratio of the project has

been proposed at ---------------- The project


is expected to be commissioned in a short time of 5-6 months and startcommercial

operations from April 2022.

The Project has excellent profitability - positive Net Present Value (NPV) of Rs.

------ lacs (on 10% discount rate) and post tax IRR of ------------%. The project has a short

Payback period of 7 years, Average BEP of ---------% and average debt service coverage

ratio of ------------ which indicates the strength of the project.


INTRODUCTION

Bananas occupy a major role in the fruit production basket of India – 31% of

India’s fruit production (308.08 lac MT during 2017-18) and 13% of Total Area

under Fruits (8.84 lac hectares during 2017-18). India is the world’s leading

producer of Banana contributing nearly 24% of the global production.

Bananas are the main fruit in international trade and the most popular one in the

world. In terms of volume they are the first exported fruit, while they rank second

after citrus fruit in terms of value. Banana is a very delicate commodity on

economic, social, environmental and political grounds.

GRAPHICAL REPRESENTATION
Bananas are also a very important staple commodity for many developing

countries, together with wheat, rice or corn, hence the relevance of bananas for

food security. Some of the main bananas producing countries, such as India or

Brazil, are hardly involved in international trade. In fact, only about one fifth of

total banana production is internationally traded. Nevertheless, the share of

banana trade in world banana production increased slightly in the last decades

(from around 18% in the sixties and seventies to over 22% in the 1990s and

2000s). The international banana market shows a highly regional character.

“It is believed that 2.7 lakh tonnes of raw banana are cultivated in

Kerala annually, of which 50% is directed towards banana chips. The

final yield will be one third of that 50%, which is nearly 40,000 tonnes.

This entire production might not be consumed locally and a part might

be going to other states and the Middle East,”

BANANA PRODUCTION IN INDIA


Area: in ‘000 Ha, Production: in ‘’000 MT
Sr. 2015-16 2016-17 2017-18
STATES/UTs
No. Area Production Area Production Area Production
1 ANDHRA PRADESH 75.72 3570.62 88.17 4672.75 88.96 5003.07
2 ARUNACHAL PRADESH 5.42 31.64 2.45 17.47 2.21 14.08
3 ASSAM 51.1 882.71 49.27 854.85 53.08 913.27
4 BIHAR 34.8 1535.30 35.07 1527.85 31.07 1396.39
5 CHHATISGARH 25.76 587.42 26.12 609.21 26.57 745.78
6 GUJARAT 64.69 4185.52 66.31 4293.23 68.15 4472.32
7 HIMACHAL PRADESH 0.09 0.42 0.08 0.35 0.08 0.35
8 JHARKHAND 12.53 33.28 9.06 31.63 9.17 32.06
9 KARNATAKA 96.63 2370.95 99.46 2446.03 110.55 2328.90
10 KERALA 84.56 1292.41 84.98 1250.55 109.26 1119.16
11 MADHYA PRADESH 28.35 1758.05 26.97 1876.45 26.38 1834.03
12 MAHARASHTRA 69.55 3025.15 81.34 3888.9 80.88 4209.27
13 MANIPUR 6.95 93.95 8.19 109.82 6.93 93.48
14 MEGHALAYA 7.11 88.71 7.24 94.32 7.37 96.90
15 MIZORAM 10.91 141.03 11 141.04 11.21 143.84
16 NAGALAND 7.25 108.51 8.32 116.98 8.34 117.04
17 ODISHA 24.47 462.71 24.46 466.44 24.2 449.82
18 PUNJAB 0.11 6.43 0.09 5.27 0.09 5.27
19 RAJASTHAN 0.03 0.41 0.04 0.35 0.03 0.68
20 SIKKIM 1.15 3.56 1.21 3.87 1.28 3.71
21 TAMIL NADU 94.61 4331.65 94.98 3499.48 82.63 3205.04
22 TELANGANA 4.65 183.70 2.06 73 2.29 90.02
23 TRIPURA 14.62 153.62 10.8 115.28 10.29 109.40
24 UTTAR PRADESH 67 3061.21 69.1 3160.82 69.38 3172.33
25 WEST BENGAL 48.07 1172.34 48.07 1172.34 49.3 1200.00
OTHERS 5.03 53.55 5.16 48.97 4.07 51.29
TOTAL 841.19 29134.82 859.97 30477.22 883.77 30807.50
Source : Horticulture Statistics Division, Department of Agriculture, Coopn & Farmers Welfare.

In India, the leading banana producing states are – Tamil Nadu, Maharashtra,

Gujarat, Andhra Pradesh, Uttar Pradesh etc. Traditionally, raw banana moves in

large quantities from these major production belts to the consumption centers in

India. Thrissur is one of the important consumption and local distribution center

for Banana in Kerala Banana is an important fruit crop of many tropical and

subtropical regions of India. It is cultivated in India in an area of 830.5 thousand

ha and total production is around 29,779.91 thousand tons.

The State produces about 42.404 lacs MT of banana produce from an area of

52.89 lacs ha. and accounts for ----------of total horticultural production of the

country. The major horticulture produce comprises vegetables (--------------%)

and fruits (------------%).. Production of banana is concentrated in belts of -----------

-------------------------------------------------------------(Name of Area)
Recommended cultivars of banana in the state are ----------------------------.

Banana’s are deeply linked with the traditional culture of Kerala. Different banana varieties
play a significant role in the daily life of the people in this South Indian state. In Malayalam
language, banana plant is called by ‘Vaazha’ and the banana fruit is termed as ‘Vaazha
pazham’. Different varieties of bananas in terms of colour, size and taste are available in
the market.

. The State produces about 48.569 lacs MT of mango from an area of about78.155

lacs ha. with the productivity of -------------- t/ha. which is the highest in the country. The

commercial mango varieties grown in the State are--------------------------------------, The

major mango producing belts in the State are ------------------------------------------------

Raw Banana (Green) is ripened at the distribution centers prior to release to the market

for consumption. Earlier, the accepted practice was to ripen banana using carbide, a

carcinogenic substance which has been banned in India. The emerging trend has

been to ripen banana placed in cold chambers using calibrated doses of Ethylene

injected in the cold chambers through Ethylene Generators. Ethylene is a naturally

occurring gas linked to ripening process of any fruit or vegetable. The use of

controlled ripening technology allows for ripening of fruit like banana as per the market

requirements. The beneficial impact of controlled ripening using this technology is

now largely being utilized for ripening of other fruits like Mango and Papaya, which

has led to a huge demand for such facilities to be set up across the distribution and

consumption centers.
In terms of volumes, Banana being a round the year crop, presents excellent

opportunity for ripening business followed by Mango which in season have large

volumes.

The Proposed project for ripening facility at Village & Post ---------, Dist.

THrissur(Kerala) is to promote controlled ripening of fruits like Banana and

Mango using latest ripening technology which is safe and natural. The project is

aimed at capitalising on emerging market demand in Thrissur for “naturally

ripened banana” which are free from harmful chemicals.

PROMOTERS PROFILE

The Project is being promoted by M/s----------- Agro Industries– a partnership firm

set up by experienced and reputed farmers Mr. ----------, Mr. --------------,l. The

promoters are involved in various farm based activities for more than a decade

including farming, cane crushing, brick kilns and allied business successfully. A

large group of farmers known and related to the promoters have been growing

banana in and around Thrissur for several years now and underscored the

requirement for ripening rooms for marketing of the banana in local markets.

The promoter has keen interest in developing integrated chain linking growing of

fruits like banana with controlled ripening and direct marketing to nearby city

markets. Herein, lies the genesis of this project where the promoter

proposes to set up modern Ripening Chambers for Banana and Mango in

Thrissur
The project has been planned to be set up with financial assistance under applicable

scheme of AIF – Scheme for PHM related components including Ripening Chambers.

PROJECT PLANNING
The Controlled Ripening Store project is planned for handling Banana, Mango

etc. which can be ripened under controlled conditions. Traditionally, the

requirement for ripened bananas in the markets of Thrissur and are met by

supplies of Green Banana from production belts of --------------------------------------

routed by traders based in Thrissur markets and local merchants. Similarly,

Mango supplies to these markets are sourced from --------------------------- and

Mango are ripened using various methods at these consumption markets.

The winter months of December to February are lean months linked to lower

production and consumption patterns whereas peaking of arrivals and

consumption is observed during July to October linked to festival demands.

Maharashtra is the major source for Banana (72% market share) followed by

Gujarat (9% market share) and Andhra Pradesh (8% market share). However,

with captive cultivation in different belts of UP, locally grown banana is available

in good quantities.

Demand of Banana in India as a whole is tremendous as it is the cheapest fruit

available to common man; therefore, there is tremendous scope for setting up of

a ripening unit in this area.


The Ripening Facilities are rapidly picking up given the strict enforcement of ban

on use of carcinogenic materials traditionally used for ripening of banana and

other fruits. The major volume of business in ripening is likely to be generated

from Banana followed by seasonal demands for ripening of Mango and other

fruits like Papaya. The ripening of Banana and Mango will be by modern system

replacing the traditional methods using carcinogenic materials. The Ripening

facilities are being set up closer to the consumption markets to ensure better &

safe quality of ripened fruits to the consumers. This also reduces the wastages

involved in transportation of ripened fruit over long distance. Such ripening

facilities are being planned as captive facilities by traders for meeting their in-

house requirements and also for Long term lease of chambers for ripening to

other market traders. The existing demand for ripening rooms is far in excess of

the available ripening rooms leading to a trend whereby several upcoming Cold

Rooms are also proposing to set up Ripening Rooms or existing Cold Rooms are

being converted into Ripening Rooms. Small traders across the region are

setting up small ripening facility for own use.

The entire project planning process has been based on the following

methodology followed for the project:-

a) Planning of Ripening Activity for Fruits

b) Proposed Backward Linkages & Farm based activity for Project

c) Planning of Activity, Area & Equipment Requirements

d) Marketing & Forward Linkages for Project


e) Site Evaluation and Layout Planning
a) Planning of Ripening Activity for Fruits

For many years, ethylene has been used in the fruit business in Ripening rooms

to speed up the process. Fruit naturally gives off ethylene gas and the more

ethylene that fills a storage space, the quicker the ripening process.

If not controlled, ethylene gas can be extremely damaging to fruit, vegetables

and flowers, even though it exists only in low parts per millions. In India,

traditionally, the ripening of fruit was handled in a dis-organized manner with lack

of knowledge resulting in use of hazardous chemicals and uneven ripening in

lots.

In Bananas, the ripening process can vary from 4 days (fast) to 8 days (slow)

with the use of ripening chambers to cater to the needs of the market. Once the

ripening process has been triggered (100-150 ppm dosage during first 24 hours),

the most efficient way to stop or slow this process is to remove the ethylene from

the storage area. This ensures that neither the rate of ripening nor intensity of

respiration of the fruit is significantly changed. (Refer below Table for ripening

schedule for Bananas & colour chart showing stages of ripening)


BANANA RIPENING SCHEDULE

Fast oC Normal oC Slow oC Ethylene


Day added
18 18 17 Yes
18 16 15 No
17 15 14 No
14-16 15 14 No
14 14 No
14 14 No
14 No
14 No
Mangoes are only medium producers of ethylene but are highly sensitive to the

presence of ethylene. Ripening is slowed down by the reduction of ethylene. Similarly,

in other fruits and vegetables control of ethylene can provide better quality and

enhanced storage conditions. (Refer Annexure 1 for table of ripening of various fruits).

Temperature affects both the rate of ethylene production and the sensitivity of

products to ethylene. Ethylene gas is naturally produced in most if not all plant tissue.

This simple chemical compound is generally recognized as a fruit-ripening hormone. It

can have beneficial or detrimental effects on fresh commodities, depending on

management needs. For these effects to occur a minimum concentration must

accumulate within the internal atmosphere of the product, and the temperature must be

above a minimum. These minimums are not well defined. However since the

production and action of ethylene are both temperature-dependent, rapid cooling and

good temperature management are vital if fruit ripening and other deterioration

processes are to be delayed. In terms of respiratory activity, fruits-including fruit-type

vegetables have been grouped into two classifications, “Climacteric” and “Non-

climacteric”. Climacteric fruits (like Apple, Peach, Papaya, Tomato) normally ripen after

harvesting, during which time sugars increase and volatile constituents develop. The

non-climacteric fruits (like Citrus, Grapes, and Strawberries) do not ripen after harvest

and exhibit no rise in respiratory activity. (Refer Ethylene Sensitivity Table below)
Fruit and Ethylene Sensitivity to Product Response Recommended
Vegetables Production Ethylene to Excess Ethylene Humidity Level
Apples Very high High Less crisp 90 – 98%
Apricots High High Soft 90 – 98%
Asparagus Very low Medium Tough 90 – 98%
Avocados High High Dark spots 90 – 98%
Bananas Medium High Dark spots 85 – 95%
Broccoli Very low High Yellowing 90 – 98%
Brussell Very low High Yellowing 90 – 98%
Sprouts
Cucumber Low High Yellowing 90 – 98%
Grapes Very low Low Colour fade 90 – 98%
Kiwi Fruit Low High Soft colour fade 90 – 98%
Lettuce Very low High Spotty 95 – 98%
Melons Medium High Soft 85 – 95%
Peaches Medium Medium Soft 90 – 98%
Peas Very low Medium Colour change 90 – 98%
Plums/Prunes Medium Medium Soft/Colour 90 – 98%
change
Soft
Soft/Colour
Change
Rock Melon High Medium 85 – 95%
Tomatoes Low Medium 85 – 95%

b) Proposed Backward Linkages & Farm based activity for Project

Banana & Mango are the main fruit crops to be handled in the proposed

project for ripening. As discussed earlier in the report, large number of farmers

are growing mango & banana in the catchment area which will be available for

ripening from May to October. Rest of the year, fruits will be procured from

other production belts in -----------------. The major sourcing points for Banana

from these states are as follows: -


STATE PRODUCTION BELTS SEASON
Kerala Round the year

Tamil Nadu May to Oct.

May to Oct.

The major sourcing points for Mango from the key belts of Uttar Pradesh are

as follows:-

The promoter has planned to integrate the project with direct supplies from

neighborhood farms and farmer groups who will be encouraged to adopt modern

post harvest practices for minimising losses and improving quality. In banana, it

is planned to de-hand the banana and transport the fruit in field crates to the

proposed project facility so as to ensure minimum losses in transit. The entire

activity of conversion of banana from loom to hands is proposed to be carried out

in the banana fields by farmers. The conversion of banana looms into hands

requires the following activities to be carried out:-


1. The Banana Loom is hung and de-handed.

2. De-Handing is the process of cutting hands (clusters of banana’s on the

bunches) off the bunch, cutting them into manageable sizes and de-flowered

(process of picking off the dried flowers from the ends of banana’s) before

placing them into a wash trough.

3. Banana are washed twice for cleaning and treatment in tanks.

4. Clustering is the process of breaking a hand of bananas into clusters of three

(3) to eight (8) bananas depending on the size requirement.


5. Banana clusters are placed into plastic crates of 20 kg capacity (containing

around 18 kg of banana) using white safety sheet between each bunch.

6. Packing in cartons (of 13.5 kg capacity) or plastic crates (of 20kg capacity)

requires banana clusters to be placed in a transparent polythene bag lining

the carton and each bunch having white safety sheet between bunches.

Similarly, Mango fruit is proposed to be harvested, de-sapped, cleaned, graded

and packed in cartons/ crates at field prior to be shipped to the ripening facility.
c) Planning of Activity, Area & Equipment Requirements

The proposed project has been planned to carry out various activities for

benefit of growers and various other stakeholders. The existing business

activity of the promoters involving farm related activities and trading creates an

opportunity to tap requirement for ripening of Banana for supplies to the

markets in Kerala . Hence, one of the key strengths of the project is assured

supplies of Banana and other fruits for captive ripening. The proximity of the

proposed project site to farms offers an opportunity to tap these market

segments and also cut down the losses during transportation. The existing

trend is to ripen truck loads of banana for a 3 - 4 day cycle. The shorter 3 day

cycle is preferred for shipping out partly ripened to distant clients and during

festival season. Based on evaluation of the market demand, the following

activities are proposed to be carried out within the project:-

 Controlled ripening of fruits like Banana, Mango etc. for 3 – 4 day cycle for

captive use as per the business requirements.

 Controlled ripening of fruits like Banana, Mango on lease / rental basis for

customers/ traders.

Initially, it is proposed to start the project with 4 chambers (based on 4 day

ripening cycle) each with a capacity to handle around 30 MT of banana in


crates per chamber – 4 chambers in a row with a loading area of 2.3m wide

running across the ripening rooms to allow for smooth loading-unloading

operations. Buffer space has been kept for expansion of ripening rooms in

future.

The planning of area requirements for Ripening Store have been worked out

on the basis of standard loads of 30 MT. The capacities for Ripening rooms

have been based on requirements for placement of plastic crates (650mm (L)

x 400mm (W) x 350mm (H) with average load of around 20 - 22 kg of banana.

Each crate position can stack upto 8 nos. high stacking with total load of

around 160 - 170 kg load. A total of 192 crates positions will be placed in

each chamber. (refer crate stacking pattern on crates below)


For proposed ripening room, it is proposed to have 16 rows of crates each

with 12 crates across the room with passage left between all crates and walls

to allow for air circulation. Hence a total of 1,536 crates are planned with a

total capacity of around 30 MT load per room. The dimension of the ripening

room is planned at 13.5m x 7.0m x 3.5m (H). (Refer photo below for

positioning of fruit in ripening room.)


The produce arrivals and despatches within the project facility will be largely

on trucks for which a large open docking & parking area has been provided to

allow for simultaneous docking of 2 - 3 trucks. A covered Packhouse has

been provided for carrying cleaning-grading-packing operations of the

banana. The fruit movements will be in crates mounted on pallets with hand

pallet trucks.

INSULATION, REFRIGERATION, RIPENING EQUIPMENT

The proposed project has been planned to set up with the latest available

technology which can be seamlessly expanded for capacity expansions at later

stage and allow for economic operations. The various technical components for

the facility have been planned as under:-


INSULATION

The insulation plays an important role in any cold / ripening room operations. It is

proposed to install PUF sandwich panels of 80mm thickness for ceiling and walls,

with following specifications which are suitable for the positive temperature

ripening rooms as are proposed :-

PUF insulation core thickness 80mm

Environmental acceptance CFC Free

Outer/ Inner Skin [Body Sheet] 0.5mm GI Colour coated galvanised sheet

Density 40 + 2 Kg/M3

Closed cell content 90 - 95%

Thermal Conductivity .017 - .020 W/M DEG K

Wall joints Lockable

The floor insulation is proposed with laying of PUF slab of 80mm complete with

tar felt sheets and bitumen below the flooring. Each room shall be leak proof.

The doors planned for the ripening rooms are insulated doors of hinge type (1.2m

x 2.1m) to allow for ease of stuffing and de-stuffing of rooms.

REFRIGERATION SYSTEM

The refrigeration system for the facility has been planned on “stand-alone” basis

for each room. This will facilitate the operations of each ripening room

independently and also allow for savings in power costs during shut off period.
The required heat load for each room has been estimated at 31 KW (refer

Annexure 2 for heat load calculation sheet). Each ripening room is proposed to

have 2 units of desired refrigeration capacity of around 55,000 btuh capacity.

Pressurized air-flow within the room is proposed to ensure forced movement

through the crates is planned with high CFM fans in evaporator units to meet the

guidelines of NHB. Each of the rooms would require to maintain high humidity

levels of 90 - 95% RH which is essential for ripening activity which is proposed to

be achieved by installation of humidifiers complete with all accessories. Display

and control units for temperature, humidity, ethylene and CO 2 levels in the

ripening rooms are proposed to be installed so as to ensure proper monitoring of

these levels.

RIPENING EQUIPMENT

The ripening system planned for the project consists of portable Ethylene

Catalytic Generators placed within the ripening rooms and ethylene gas released

in the room by using liquid with catalyst. Temperature sensors for air temperature

are planned for each room. The desired concentration levels of gas are achieved

within the room and monitored through a system of gas analysers placed within

all room and a control system to allow for monitoring the levels of ethylene and

CO2 and duration of treatment. (refer below)


A ventilation system through installation of dampers is proposed for removal of

CO2 built-up within the room. The portable ethylene catalytic generators can be

shifted amongst ripening rooms as per the requirement for initial dosing of

ethylene in a room (upto 24 hours in banana).

MATERIAL HANDLING EQUIPMENT

The material handling equipment have been planned to ensure smooth

movement of produce within the facility. The following components are planned

for the facility:-

PLATIC CRATES

The fruit in crates of 20 kg capacity will be brought into the ripening rooms for

ripening activity. For captive ripening, fruit filled crates after ripening process will

be dispatched from the facility. Customers bringing fruit for ripening the facility

will have owned crates. Hence, plastic crates (with distinctive markings) will be

required for captive ripening in the project. The requirement for plastic crates is

estimated at 1536 crates per room. Hence, a total requirement of around 6,150

crates is envisaged for the ripening activity in the project.


ANCILLARY EQUIPMENT

100% power back-up is proposed for the facility with 1 Genset of capacity 125

kVA complete with sound-proof covers. (refer calculations below)

POWER LOAD CALCULATION FOR UPPAL AGRO INDUSTRIES

LOAD
S.No EQUIPMENT UNIT QUANTITY (KW) TOTAL(KW)

1 REFRIGERATION UNIT Nos. 4 35 140


2 LIGHTING Lot 1 5 5
3 MISCELLANEOUS Lot 1 5 5

TOTAL 150

LOAD FACTOR @ 0.85 128


DIVERSITY @ 0.7 89
TAKING POWER FACTOR 0.85 KVA 105
We choose 125KVA DG set taking 85% loading.

d) Marketing & Forward Linkages for Project

The marketing efforts in the project are required to be planned for sale of

quality ripened Banana & Mango as captive activity of the promoters.

The project has a key benefit of its location being in close proximity to the

major markets of ----------------- and other -------------------markets and good

connectivity by road from production belts. Hence, there is a major

requirement for ripening of Banana and Mango handled by them for these

markets. The benefits of controlled ripening rooms are now well recognized in
terms of better product quality & price realisations. Large farmers, traders and

retail chains prefer to utilise such ripening facilities for improved fruit quality

and also higher returns. The proposed project enjoys this advantage which will

facilitate the marketing of ripened fruits. Hence, the project has excellent

market potential with assured in-house business.

e) Site Evaluation and Layout Planning

The project site measures around 715 SQM and is located at---------------,

Village & Post. –-------------Kerala The site being located on the village road

has direct road access to site which allows for free truck movement to & from

the project. (Refer Annexure ----)

The docking of trucks for unloading-loading operations will be provided within

the project. There is sufficient space within the site for smooth planning of

project facilities as well as buffer space for expansion. Hence, the entire

project facility will be single storey structure made of Pre-fab steel shed. Open

platforms have been provided for smooth unloading – loading operations. The

following activity areas have been planned within the Project Building (Refer

Annexure---- for layout plan):-

 Ripening Rooms of 30 MT capacity (dimensions 13.5m length x 7.0m

width x 3.5m height – 4 nos of total capacity 120 MT per batch.


 Loading passage of 3.0 m width across the ripening rooms for smooth

stuffing – destuffing operations.

 Banana Cleaning-Grading-Packing Area

 Administrative office, Changing Rooms & Toilet

 Unloading-Loading Area with truck docking stations for trucks.

 Parking Bay for trucks capable of handling 2-3 trucks.

 Electrical & Plant Control Room


FINANCIAL ASSESSMENT OF OPERATIONS

The Financial Assessment of the Project Operations for Ripening Store has been

assessed based on the proposed activities to be carried out. The various

financial aspects of the project have been assessed as under:-

TOTAL PROJECT OUTLAY

The total project outlay has been estimated at Rs 168.0 lacs as per the details

given below:-

FINANCIAL OUTLAY FOR THE PROJECT


(Rs in lacs)
S.No. Description Amount
1. Land Nil
Civil Works for new Construction, Electrical & Fire
2. Detection, Solar Equipment 65.74
3. Insulation & Refrigeration Eqpt. 100.55
4. Pre-Operative Expenses 1.80

Total 168.09

1. LAND

The project is proposed to be set up on a plot measuring 715 SQM and is located

at -----------, Village & Post. – ------------ Dist. – Thrissur Kerala , The project land

belongs to partners of the firm. Hence, land value has been taken at nil.
2. PRE-FAB SHED, CIVIL WORK, ELECTRICAL & SOLAR EQUIPMENT

A civil structure with plinth area measuring 44.0m x 10.0m (440 sq. m. approx)

has already constructed and further 11.0m x 10.0m (110 sq. m. approx) is

proposed to be built comprising Ground Floor for the ripening rooms. The

proposed shed includes an area of around 154 sq. m. for loading & unloading

operations. The total estimated cost for the civil structure is estimated at Rs 5.40

lacs as per details given below (as per civil items quotation). (Refer Annexure 6--

for cost details.)

The cost of electrical works including Panel, Transformer, lighting, cabling, panel

etc. has been estimated at Rs 12.80 lacs. The proposed genset for 100% back-

up covering 125 Kva (1 no) is estimated to cost Rs 8.95 lacs as per quotation

from supplier.

Hence, total civil and electrical works have been estimated at Rs 27.15 lacs as

follows:

S. No. Components Amount (Rs lacs)

1. Civil works including Pre-fab shed 5.40

2. Miscellaneous electrical works 12.80

3. DG Set 8.95

TOTAL 27.15
3. PLANT & MACHINERY FOR RIPENING STORE

The complete plant and machinery for the ripening project is proposed to be

installed on turnkey basis for Rs 100.55 lacs covers the following:-

S. No. Components Amount (Rs lacs)

1. PUF PANEL FOR WALLS & CEILING (1000 18.50

SQ.M.)

2. PUF FLOOR INSULATION (400 SQ.M.) 6.20

3. DOORS FOR RIPENING ROOM (4 NOS) 1.80

4. REFRIGERATION SYSTEM (LOT) 47.80

5. RIPENING EQUIPMENT (LOT) 8.25

6. FIELD CRATES (3000 NOS) 18.00

TOTAL 100.55

INSULATION, REFRIGERATION & RIPENING EQUIPMENTS

The proposed insulation, refrigeration and ripening equipments covering 4 nos

ripening rooms of 30 MT capacity is proposed to be installed on turnkey basis at

an estimated cost of Rs 100.55 lacs as per quotation received from suppliers

(refer Annexure -- for Quotation).


MATERIAL HANDLING & ALLIED EQUIPMENT:

The proposed equipment for material handling covering crates is estimated to

cost Rs 18.00 lacs as per quotation received from suppliers (Refer Annexure ----

for Quotation).

4. SOLAR SYSTEM

The estimates for solar system of the proposed Cold Store and Ripening Unit,

including installation, etc. have been based on vendor quotations and estimated

at Rs 40.80 Lacs. (Refer Annexure 8 for quotation of insulation and refrigeration

equipment)

5. PRE-OPERATIVE EXPENSES

Pre-operative expenses have been estimated at Rs 1.80 lacs towards interest

cost during construction period. (Refer interest on term loan workings as per

Annexure 8)

SOURCE OF FUNDS

The Project is proposed to be funded through a mix of own funds and assets

contributed by the promoters and bank loan covering term loan including back

ended capital subsidy under scheme of MIDH for Post Harvest Management

including Ripening Rooms. The promoter contribution in the project is proposed

at Rs -------- lacs (10% of project cost) bank loans of Rs ---- lacs (---% of project

cost). The debt-equity ratio of the project has been proposed at =----
The workings for eligible financial grant from AIF for the Post harvest scheme

has been worked out as under :-

Financial Grant from National Horticulture Board


(Rs in lacs)
Non
S. Total Eligible Eligible
No. Component Amount for Grant for Grant
1 CIVIL WORKS & ELECT. 27.15 27.15
2 PLANT & MACHINERY 100.55 100.55
ALTERNATE TECHNOLOGY (SOLAR
3 PANEL) 40.80 40.80
TOTAL (A) 168.50 168.50

RIPENING CHAMBER @ 100000/- PER MT


1 FOR 120 MT 120 120

ALTERNATE TECHNOLOGY (SOLAR


2 PANEL) UPTO 35 LACS 35 35
TOTAL (B) 155 155
C) ELIGIBLE COST (LOWER OF A OR B
ABOVE) 155 155
SUBSIDY @ 35% OF C ABOVE 54.25
PROJECTED REVENUES

The projected revenues for the project operations have been worked out for

proposed service offerings covering sale of captive banana ripening operations.

The project is proposed to be fully completed by- - - - - - - - - 2022 and the first

fullyear of operations shall be 2022 - 23. The proposed revenue stream has been

based on competitive pricing and likely volumes to be handled, as discussed

below :-

Banana Handling

The project has been planned to handle the entire 100% capacity for captive

handling and ripening of banana by the promoters. With a 120 MT total capacity

and annual 90 ripening cycles the total annual installed capacity is estimated at

10,800 MT. The first year of operations 2022-23 will be for full 12 months for

which capacity utilization has been taken at 60%, followed by 2023-24 (70%),

2024-25 and onwards (80%). Hence, in the first year (2021-22), banana handling

activity is proposed to handle 6,840 MT followed by 7,560 MT in second year,

and 8,640 MT in the third and following years. Process losses have been taken

at 10%. The banana realizations have been assumed at Rs 15/- per kg and

purchases (including transport till site) at Rs 12.00/- per kg. A 5% increase in

purchase & sale prices have been considered from 4 th year onwards year-on-

year basis.
PROJECTED EXPENSES

The projected expenses for the proposed project operations have been worked

out for proposed level of operations. Each of the cost components are discussed

below :

1. Salaries & Wages are estimated at Rs 15.36 lacs annually - Manager 1 no

(Rs 20,000/- pm); Plant Operator 1 no. (Rs 18,000/- pm); Accountant 1

no. (Rs 18,000/- pm) Operation Staff 5 nos (Rs 12,000/- pm); and Security

Staff 1 nos (Rs 12,000/- pm). A 10% year-on-year increase has been

proposed after the first year operations.

2. Water, Power & Fuel expenses have been estimated based on projected

operational levels as under –

Water requirements for basic washing and other cleaning operations have

been estimated at 1KL per day with peak annual requirements of 360KL

all of which will be met from captive borewell.

Power & fuel requirements are based on connected load of 49 kw (16 hr

run time per day) which are proposed to be met 50% with solar supply

(day-time) and balance 50% from grid supply. The peak annual

requirements have been estimated at 1.43 lac units on 100% capacity

utilisation. The projected power costs (based on existing tariff for electricity

@ Rs 6.5 per unit and for genset operations Rs 10.00 per unit) has been

worked out on the basis of 90% running from direct supplies & 10% from
genset. Hence, the total projected costs under this head are Rs 5.88 lacs

in 2022-23; Rs 6.86 lacs in 2023-24 and Rs 7.84 lacs in 2024-25 onwards.

A 10% year-on-year increase has been proposed after the third year

operations.

3. Repairs, Maintenance & Insurance Overheads have been

estimated at 1%, 2% and 3% of the total cost of the equipment and project

building for the first three years and onwards –Rs 1.66 lacs in 2022-23; Rs

3.33 lacs in 2023-24 and Rs 4.99 lacs in 2024-25 onwards. A 10% year-

on-year increase has been proposed after the third year operations.

4. Administrative Overheads and Consumables covering ripening liquid for

Ethylene Generator, Chemicals for washing & treatment of fruits, have

been estimated at 2.0% of the total income to meet the various

administrative costs and expenses.

5. Interest on bank Term loan of Rs 120.00 lacs have been taken at 7.0% pa.

Interest subvention @ 3% is available under AIF scheme for complete

loan (being less than Rs 2.00 crores) will be available for the entire period

of loan including gestation period (upto maximum 7 years). Hence, interest

calculations have been worked out @ 4.00% per annum basis. Subsidy

available under MIDH scheme will be adjusted against the term loan on
receipt from MIDH. Repayment of term loan is assumed at 6 ½ years

commencing after 6 month gestation period. The total interest charges for

the first year are estimated at Rs 2.38 lacs; for the second year at Rs 1.97

lacs and third year at Rs 1.57 lacs. (Refer Annexure -----for interest &

repayment schedule of Term loan).

6. Depreciation has been charged on WDV basis at the rates as per IT Act.

The assets have been adjusted for the amount of eligible subsidy from

MIDH received in 2022-23 (refer Annexure 9 for depreciation workings )

PROJECTED PROFITABILITY & FEASIBILITY

The Project has excellent profitability - positive Net Present Value (NPV) of Rs.

160.88 lacs (on 10% discount rate) and post tax IRR of 28.94%. The project has

a short Payback period of 4 years, Average BEP of 42.56% and average debt

service coverage ratio of 7.82 which indicates the strength of the project.
Revenue From Ripening Room Operations
(Rs.in Lacs)
2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31
Annual Ripening Capacity (MT) 10800 10800 10800 10800 10800 10800 10800 10800 10800
Capacity Utilisation (%) 60% 70% 80% 80% 80% 80% 80% 80% 80%
Capacity Utilisation (MT) 6480 7560 8640 8640 8640 8640 8640 8640 8640

Income (Rs.in Lacs)


RIPENED FRUIT SALES 874.80 1020.60 1166.40 1224.72 1285.96 1350.25 1417.77 1488.65 1563.09

Total Income 874.80 1,020.60 1,166.40 1,224.72 1,285.96 1,350.25 1,417.77 1,488.65 1,563.09

Expenses (Rs.in Lacs)


Fruit Purchases 777.60 907.20 1036.80 1088.64 1143.07 1200.23 1260.24 1323.25 1389.41
Salaries & Wages 15.36 16.90 18.59 20.44 22.49 24.74 27.21 29.93 32.93
Electricity Charges 5.88 6.86 7.84 8.62 9.49 10.44 11.48 12.63 13.89
Repairs & Maintenance O/H 1.66 3.33 4.99 5.49 6.04 6.64 7.30 8.03 8.84
Administrative O/H & Consummables 17.50 20.41 23.33 24.49 25.72 27.01 28.36 29.77 31.26
Interest on Term Loan 2.38 1.97 1.57 1.16 0.76 0.35 0.02 - -
Depreciation 14.96 12.90 11.13 9.61 8.30 7.18 6.21 5.38 4.66
Pre-operative expenses written off 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18 0.18
Total Expenses 835.52 969.75 1,104.42 1,158.65 1,216.05 1,276.76 1,341.00 1,409.17 1,481.17

Profit 39.28 50.85 61.98 66.07 69.91 73.50 76.76 79.48 81.92
Tax Expense:
(a) Current Tax 12.26 15.87 19.34 20.62 21.81 22.93 23.95 24.80 25.56
Net Profit after Tax 27.03 34.99 42.64 45.46 48.10 50.57 52.81 54.68 56.36

PROJECTED BALANCE SHEET


(Rs.in Lacs)
2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31
I Equity & Liabilities
(1) Shareholders' Funds
(a) Promoter Capital 48.09 48.09 48.09 48.09 48.09 48.09 48.09 48.09 48.09 48.09
(b) Reserves & Surplus - 27.03 62.01 104.65 150.11 198.21 248.78 301.59 356.27 412.64

(2) Non current liabilities


(a) Bank Term Loan 120.00 55.63 45.51 35.39 25.27 15.15 5.03 (0.00) 0.00 0.00
(b) Working Capital Loan from Bank - -
Total 168.09 130.74 155.61 188.13 223.47 261.45 301.89 349.68 404.36 460.72

II Assets
(1) Non-current assets
(a) Fixed Assets
(i) Tangible Assets 166.29 97.07 84.17 73.04 63.43 55.12 47.94 41.73 36.35 31.70
(b) Other Non current assets 1.80 1.62 1.44 1.26 1.08 0.90 0.72 0.54 0.36 0.18

(2) Current Assets


(a) Cash & Bank Balances - 32.05 70.00 113.83 158.96 205.42 253.23 307.40 367.64 428.84
(b) Trade Receivables -

Total 168.09 130.74 155.61 188.13 223.47 261.45 301.89 349.68 404.36 460.72
PROJECTED CASH FLOW STATEMENT
(Rs.in Lacs)
2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31
A. CASH FLOW FROM OPERATING ACTIVITIES

Net Profit Before Tax and Extraordinary Items - 39.28 50.85 61.98 66.07 69.91 73.50 76.76 79.48 81.92
Adjustment for :-
Depreciation/Amortisation - 15.14 13.08 11.31 9.79 8.48 7.36 6.39 5.56 4.84
Operating Profit Before Working Capital Changes - 54.42 63.93 73.29 75.87 78.40 80.86 83.15 85.04 86.76
Adjustment for:-
Trade receivables etc. - - - - - - - - - -
Cash Generated from Operations - 54.42 63.93 73.29 75.87 78.40 80.86 83.15 85.04 86.76
Direct Taxes paid - 12.26 15.87 19.34 20.62 21.81 22.93 23.95 24.80 25.56
Net Cash from Operating Activities (A) - 42.17 48.07 53.95 55.25 56.58 57.93 59.20 60.24 61.20

B. CASH FLOW FROM INVESTING ACTIVITIES


Purchase of Fixed Assets (166.29) - - - - - - - -
Pre-operative Expenses (1.80) - - - - - - - - -
Govt. grant received credit linked with term loan 0.00 54.25 - - - - - - - -
Term Loan from Bank 120.00 (64.37) (10.12) (10.12) (10.12) (10.12) (10.12) (5.03) - -
Working Capital Loan from Bank 0.00 - - - - - - - - -
Net Cash used in Investing Activities (B) (48.09) (10.12) (10.12) (10.12) (10.12) (10.12) (10.12) (5.03) - -

C. CASH FLOW FROM FINANCING ACTIVITIES


Proceeds of Promoter Capital 48.09 - - - - - - - - -
Net Cash from Financing Activities (C) 48.09 - - - - - - - - -

Net Change in Cash & Bank Balances (A+B+C) - 32.05 37.95 43.83 45.13 46.46 47.81 54.17 60.24 61.20
OPENING BALANCE OF CASH & BANK BALANCES - - 32.05 70.00 113.83 158.96 205.42 253.23 307.40 367.64
CLOSING BALANCE OF CASH & BANK BALANCES - 32.05 70.00 113.83 158.96 205.42 253.23 307.40 367.64 428.84

NPV & IRR Calculation for Ripening Rooms


(Rs in Lacs)
2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31
Net Cap Investment -168.09 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Cash Earning before Dep, Tax, Amort - 54.42 63.93 73.29 75.87 78.40 80.86 83.15 85.04 86.76
I Tax - 12.26 15.87 19.34 20.62 21.81 22.93 23.95 24.80 25.56
Net Earning after Tax - 42.17 48.07 53.95 55.25 56.58 57.93 59.20 60.24 61.20
Salvage Value 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0 85.95
Net Cash Flow -168.09 42.17 48.07 53.95 55.25 56.58 57.93 59.20 60.24 147.15
Cum. Cash Flows -125.92 -77.85 -23.90 31.35 87.94 145.86 205.07 265.31 412.46
NPV (at 10% discount) 160.88

IRR (POST-TAX) 28.94%


BREAK EVEN POINT CALCULATIONS
(Rs in Lacs)
PARTICULAR 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31
FIXED COST
DEPRECIATION 15.14 13.08 11.31 9.79 8.48 7.36 6.39 5.56 4.84
REPAIR & MAINTENANCE 1.66 3.33 4.99 5.49 6.04 6.64 7.30 8.03 8.84
SALARIES(75%) 11.52 12.67 13.94 15.33 16.87 18.55 20.41 22.45 24.69
ADMN O/H (60%) 10.50 12.25 14.00 14.70 15.43 16.20 17.01 17.86 18.76
INTEREST ON TERM LOAN 2.38 1.97 1.57 1.16 0.76 0.35 0.02 0.00 0.00

TOTAL 41.20 43.30 45.80 46.47 47.58 49.11 51.14 53.91 57.13
VARIABLE COST
WATER, POWER & FUEL 5.88 6.86 7.84 8.62 9.49 10.44 11.48 12.63 13.89
SALARIES(25%) 3.84 4.22 4.65 5.11 5.62 6.18 6.80 7.48 8.23
ADMN O/H (40%) 7.00 8.16 9.33 9.80 10.29 10.80 11.34 11.91 12.50
FRUIT PURCHASES 777.60 907.20 1,036.80 1,088.64 1,143.07 1,200.23 1,260.24 1,323.25 1,389.41

TOTAL 794.32 926.45 1058.62 1112.17 1168.47 1227.65 1289.86 1355.27 1424.04

INCOME 874.80 1020.60 1166.40 1224.72 1285.96 1350.25 1417.77 1488.65 1563.09

CONTRIBUTION 80.48 94.15 107.78 112.55 117.49 122.61 127.90 133.39 139.05

BREAK EVEN POINT 51.19 45.99 42.50 41.29 40.49 40.05 39.98 40.41 41.08
AVERAGE BEP 42.56

AVERAGE DEBT SERVICE COVERAGE RATIO


Rs in Lacs
2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29
EBITD 56.80 65.91 74.86 77.03 79.15 81.21 83.18
Repayment of Loan & Intt 12.50 12.09 11.69 11.28 10.88 10.47 5.06
DSCR 4.55 5.45 6.40 6.83 7.28 7.75 16.45
Avg. DSCR 7.82
PROJECT IMPLEMENTATION SCHEDULE

The proposed project has the advantage of readily available basic infrastructure

of land with easy access to all utilities and road connectivity. This can be

leveraged for a very short gestation period of 5 - 6 months to set up the facility.

The proposed facility is proposed to be set up with the following time frame of 5 -

6 months, and will be launched in June 2022:

S. No. Activity Time Frame


1. Approval of Financial Assistance from MIDH 4 weeks
& Funding from bank
2. Finalisation of Contracts 4 weeks
3. Civil Work & Structure 8 weeks
4. Procurement & supply of Insulation, 10 weeks
Refrigeration, Ripening Equipment &
Ancillary equipment.
5. Installation of equipment, Utilities and 4 weeks
Finishing Work
6. Trial Runs & Commissioning 2 weeks

Note: Activities listed at serial no. 3 and 4 can be undertaken simultaneously


followed by activity at 5 and 6. Hence, the total project can be completed in a
time span of 24 weeks.
Potential, Social, Environmental Impact on Small Farmer, Risk
Analysis & Replication Factor of the Unit

The proposed project will be the first such value addition project to be set up for

the benefit of farmers in Western UP. The lack of such a facility closer to the

major banana consumption markets of -------------------------------major setback for

farmers seeking direct access through northern India. The project is likely to

provide wide-spread social and economic benefits to the farmers, consumers

and traders across the country as discussed below:

 Development of ripening facility for value addition with competitive

charges for users.

 Promotion of safe and quality graded- ripened fruit which is likely to fetch

better realization for farmers

 Benefit of proximity to consumption markets of Delhi and Haryana can

reduce the transit losses and improve product quality.

 Facility can function as Resource centre and provide farmers training in

post harvest handling to ensure high quality and distribute kits. The project

aims to develop dedicated relationship with farmers in U.P, Maharashtra &

Gujarat.

 Minimization of Post harvest losses can result in value creation for the

farmers with resultant economic benefit.


ANNEXURE 1 – RIPENING TABLE FOR FRUITS & VEGETABLES

S. Product Ethylene Ethylene Ripening Predicted


No. Concentration Exposure Temp Storage after
Time Temp
1. Apple 10 ppm 6 days 25 deg C Less than 4
months at 8
deg C
2. Banana 100 – 150 ppm 24 to 48 14 to 18 Less than 7
hrs deg C days at 14 deg
C
3. Kiwi Fruit 100-200 ppm 12 hrs 0 to 5 3 to 6 weeks
deg C at 0 deg C
4. Mango 100 ppm 12 to 24 15.5 to Less than 7
hrs 25 deg C days at 10 to
13 deg C
5. Pear 100 ppm 20 to 24 20 to 25 Storage life is
hrs deg C not affected if
fruits are
cooled to 0
deg C
6. Tomato 100 ppm 3 to 35 18 to 20 7 days after
days to deg C reaching the
reach Red stage
breaker
stage and
5 to 16
days
depending
on temp to
reach full
red stage
ANNEXURE 2 – HEAT LOAD CALCULATION
Client: Uppal Agro Industries Location: Amroha (UP)
30 MT Banana ripening x 4 rooms
Basis of design Type of product
Room size meter Foot Room Temp. to be maintained Deg C Deg F

L 13.5 44.28 42 107.6


W 7 22.96 Ambient temp Deg C Deg F
H 3.5 11.48 30 86.0
Product storage capacity 30000 kg Product in temp 25 77
Product daily loading 30000 kg product storage temp 14 57.2
prod sp heat banana 0.8 btu Product freezing temp
btu ACU motor kW 0.55
Respiration load factor for banana 2.75 btu No of ACU/Room 2
btu No of motor/ACU 2
Insulation insu thk u value btu Total no of ACU motor 4
u value wall PUF 80 0.045 no of fork lift op.in a room 0
u value ceiling PUF 80 0.045 fork lift motor 0 kW
u value floor PUF 80 0.045 No of persons 0
Area sq ft 1 2 3 4
wall 508.3 508.3 263.6 263.6 1543.8
ceiling 1016.7 1016.7
floor 1016.7 1016.7
Total Area sq ft 3577.168
Wall heat gain Area u value out side temp inside tempheat gain ( btu/hr)
Wall 1 508.3344 0.045 86 107.6 -494.10
Wall 2 508.3344 0.045 86 107.6 -494.10
Wall 3 263.5808 0.045 86 107.6 -256.20
Wall 4 263.5808 0.045 86 107.6 -256.20
ceiling 1016.669 0.045 86 107.6 -988.20
floor 1016.669 0.045 86 107.6 -988.20
Total heat gain -3477 btu/hr (A)
Volume of room
Vol 11671.36 cu ft
Air change / 24 hr 6.5
Heat removal in cooling air to room
condition 2.75 btu/cuf
Air change load/hr 8693 btu/hr (B)
ACU Motor load
Motor kW 0.55
No of motors in room 4
Factor 1.34
Factor 2950
Motor load/ hr 8697 btu/hr (C)
People load
No. of person working inside room 0
Factor 1300
People load 0 btu/hr (D)
Lighting load
assume watt/sqft 0.7
Factor 3.41
Area floor sq ft 1016.669
Lighting load 2427 btu/hr (E)
Fork lift load
Motor kW 0
No of forklift in the room 0
Factor 1.34
Factor 2950
Motor load/ hr 0 btu/hr (F)
Total load ( A to F) 16339 btu/hr (G)
Safety 10% 1634 btu/hr (H)
Total - I 17973 btu/hr
Assume compressor running 18 hrs
load other than product load will be 23964 btu/hr .(1)
Product load calculation
Product load banana 1045440 btu/day

Product load below freeze 0 btu/day


Respiration load 181500 btu/day
RH load 122694 btu/day
Total product load/day 1349634 btu/day
Product load/hr 74980 btu/hr
Product load including 10 % safety 82477.63 btu/hr .(2)
Total load ( 1 + 2) 106442 btu/hr
31 kW
ANNEXURE 3– SITE MAP
ANNEXURE 4 – BUILDING LAYOUT PLAN
ANNEXURE 5– CIVIL, ELECTRICAL & DG WORKS QUOTATION

Ref- 42
Date = 21 / 03 /2022
Email -

Sr.NO Description of work Qty Unit Rate Amount

Construction of Pre Engineered Building for Cold


1 Storage with Material 1200 SQFT 450 540000

Supply and Installation of Electrical cable, LT Panel,


2 Lights and etc for 04 nos. of Ripening Rooms 1 Lot 1280000 1280000

3 62 KVA DG Set 1 Nos. 895000 895000

Add GST @18% Inclusive


Total 2715000
Payments =
1- 10% at time of work order sign .
2- 20% of total value at the time of completion all foundation .( Before Anchor bolt casting )
3- 90% of total value at the time of PEB Supply, Elerical Items and DG .
7 - 100 % of total value at the time of finishing of projects
Complection Time --04 Months
Client Name Contactor Name . Dinesh Sharma
Consultant Mr. Rajeev Goswamy Rakesh Sharma
Project Name Prime Hortiagro Cold Storage
ANNEXURE 6 – EQUIPMENT QUOTATION
ANNEXURE 6 (CONTD.) – EQUIPMENT QUOTATION
ANNEXURE 7 – CRATES QUOTATION

Sub:- Quotation for Plastic Crates.


Kindly refer to your enquiry for supply of perforated plastic crates. As desired by you, we
give below our quotation for the same:
Description Qty Rs.(Per pc)

Plastic Crate (OD 650 x 400 x 350 mm +/- 2mm) 6000Nos 254.00
Capacity Approx.44 ltrs
1. GST 18% Extra per unit.
2 Freight charges Extra as actual
3 Road Permit to be provided by you.
4 Any standard Colour
5 Screen Printing as per your matter or logo
6 Payment Against Proforma-Invoice before dispatch of materials.
7 Delivery 3/4 days after receipt of confirm order, payments and road permits
from you.
8. Validity 7 days
We hope you will find our offer in order to favour us with your valued
order.
Thanking you and assuring you of our prompt services at all times.

Yours faithfully,

Vinod Goyal
Director
ANNEXURE 8 – SOLAR SYSTEM QUOTATION
ANNEXURE 9 – TERM LOAN REPAYMENT & INTEREST SCHEDULE

INTEREST & REPAYMENT SCHEDULE OF TERM LOAN

(RS. IN LACS)

LOAN INTT. @ 7.0%


(SUBJECT TO 3% INTT.
Year QTR AMOUNT SUBVENT.) INTT. PAID PRIN. PAID
2021-22 1 60.00 0.60
2 120.00 1.20 1.80 0.00
2022-23 3 63.22 0.63
4 60.69 0.61
5 58.16 0.58
6 55.63 0.56 2.38 10.12
2023-24 7 53.10 0.53
8 50.57 0.51
9 48.04 0.48
10 45.51 0.46 1.97 10.12
2024-25 11 42.98 0.43
12 40.45 0.40
13 37.92 0.38
14 35.39 0.35 1.57 10.12
2025-26 15 32.86 0.33
16 30.33 0.30
17 27.80 0.28
18 25.27 0.25 1.16 10.12
2026-27 19 22.74 0.23
20 20.21 0.20
21 17.68 0.18
22 15.15 0.15 0.76 10.12
2027-28 23 12.62 0.13
24 10.09 0.10
25 7.56 0.08
26 5.03 0.05 0.35 10.12
2028-29 27 2.50 0.02
28 0.00 0.00 0.02 5.03
ANNEXURE 10 – DEPRECIATION SCHEDULE

DEPRECIATION ON FIXED ASSETS (As Per IT Act)


(Rs.in Lacs)
2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31
Land
Book Value - - - - - - - - -

Civil Works
Book Value 65.74 65.74 33.19 29.87 26.89 24.20 21.78 19.60 17.64 15.88
Less: Adjustment for Grant - (28.85) - - - - - - - -
Less: Depreciation - (3.69) (3.32) (2.99) (2.69) (2.42) (2.18) (1.96) (1.76) (1.59)
Net Value 65.74 33.19 29.87 26.89 24.20 21.78 19.60 17.64 15.88 14.29

Plant & Machinery


Book Value 100.55 100.55 63.88 54.30 46.15 39.23 33.35 28.34 24.09 20.48
Less: Adjustment for Grant - (25.40) - - - - - - - -
Less: Depreciation - (11.27) (9.58) (8.14) (6.92) (5.88) (5.00) (4.25) (3.61) (3.07)
Net Value 100.55 63.88 54.30 46.15 39.23 33.35 28.34 24.09 20.48 17.41

You might also like