DETAILED PROJECT REPORT

RED RICE FLAKES UNIT

UNDER PMFME SCHEME

National Institute of Food Technology Entrepreneurship and Management

Ministry of Food Processing Industries

Plot No.97, Sector-56, HSIIDC, Industrial Estate, Kundli, Sonipat, Haryana-131028

Website: http://www.niftem.ac.in

Email: pmfmecell@niftem.ac.in

Call: 0130-2281089
 PM FME‐ Detailed Project Report of Red Rice Flakes Unit

TABLE OF CONTENTS

S No. Topic Page

Number
1. Project Summary 3
2. About the Product 4-6
3. Process Flow Chart 6-8
4. Economics of the Project 9-26
4.1. Basis & Presumptions 9
4.2. Capacity, Utilisation, Production & Output 10-11
4.3. Premises/Infrastructure 11
4.4. Machinery & Equipment’s 12-14
4.5. Misc. Fixed Assets 14
4.6. Total Cost of Project 15
4.7. Means of Finance 15
4.8 Term Loan 15
4.9. Term Loan repayment & interest schedule 16-19
4.10. Working Capital Calculations 19
4.11. Salaries/Wages 20
4.12. Power Requirement 21
4.13. Depreciation Calculation 21
4.14. Repairs & Maintenance 22
4.15. Projections of Profitability Analysis 22
4.16. Break Even Point Analysis 23
4.17. Projected Balance Sheet 24
4.18. Cash- Flow Statement 25
4.19. Debt-Service Coverage Ratio 26

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 PM FME‐ Detailed Project Report of Red Rice Flakes Unit

1. PROJECT SUMMARY

1. Name of the proposed project : Red Rice Flakes Unit

2. Nature of proposed project : Proprietorship/Company/Partnership

3. Proposed project capacity : 324000 Kg/annum (50,55,60,65&70% capacity

utilization in 1st to 5th Year respectively)

4. Raw material : Paddy grains

5. Major product outputs : Red Rice Flakes
6. Total project cost : Rs. 21.99 Lakh
 Land development, building & Civil : Nil
Construction

 Machinery and equipment’s : Rs. 13.05 Lakh

 Miscellaneous Fixed Assets : Rs. 3.00 Lakh
 Working capital : Rs. 5.94 Lakh
7. Means of Finance
 Subsidy (max 10lakhs) : Rs. 5.62 Lakh

 Promoter’s contribution (min10%) : Rs. 2.19 Lakh

 Term loan : Rs.8.83 Lakh

 Working Capital Requirement : Rs. 5.35 Lakh
8. Profit after Depreciation, Interest & Tax

 1styear : Rs. 1.83 Lakh

 2ndyear : Rs. 3.54 Lakh
 3rd year : Rs. 5.26 Lakh
 4th year : Rs. 7.03Lakh
 5th year : Rs. 9.63 Lakh
9. Average DSCR : Rs. 3.35
10. Term loan repayment : 5 Years with 6 months grace period

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 PM FME‐ Detailed Project Report of Red Rice Flakes Unit

2. ABOUT THE PRODUCT

2.1. PRODUCT INTRODUCTION:

Oryza sativa, the dominant rice species, is a member of the Poaceae family. Rice is the second
largest cereal produced worldwide and is the source of carbohydrate and minor source of
vitamins, proteins and minerals. Paddy comes in variety of colours, including brown, purple, red
and even black. The structure of rice contains hull, outer covering and fruit or rice caryopsis.
Vitamins and minerals are generally confined to germ and bran. The colourful varieties of rice
viz red, purple, black, brown yellow and green are considered valuable for their health
benefits. The coloured rice varieties are either semi polished or polished.

The kernel colour is formed by deposits of anthocyanins in different layers of pericarps, seed
coat and aleurone layer. Rice with red bran is called red rice. Some Red rice variety is also called
as ‘weedy rice’. The colour of bran ranges from light to dark. Though the color is confined to
the bran of grain, a tinge of red remains after milling. Red rice has number of nutritional
properties over traditional white rice. It contains high content of protein, minerals and vitamins.
Red rice contains 2 -3 times more zinc and iron as compared to traditional white rice. Red rice
possesses antioxidant properties. Red rice can be eaten after steaming, can be used for
preparation of bread and chapati.

Red rice is rice which has red colour due to anthocyanin content in the rice. Red rice can be
consumed with hulls or partially hulled form have nutty taste. Red rice has higher nutritional
value than the usual polished rice. There are different varieties of red rice such as Thai red cargo
rice, rakthashali, Camargue red rice and Bhutanese red rice etc.

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 PM FME‐ Detailed Project Report of Red Rice Flakes Unit

2.2. MARKET POTENTIAL:

The major driving force for red rice market is due to presence of high amount of fibers, minerals
and vitamins. Growing focus for maintaining healthy lifestyle is the key factor in development of
red rice products. Traditional rice-based snacks are high calories as compared to red rice-based
snacks. Red rice also helps in lowering cholesterol and blood glucose.

Red rice is increasingly used in various cosmetic products like moisturizers, lipsticks, serums,
tanning cream, soaps, conditioners, oils, hair mask, face mask, shampoos etc. which cause rapid
growth of red rice in market.

Present day scenario requires the incorporation of novel ingredients in conventional foods. Rice
products are consumed widely because of their cheap cost, longer shelf life and good sensory
attributes. Incorporation of red rice in rice-based snacks produces novel products with more
health benefits.

There is a greater attraction towards local grains as through research now people are aware of
goodness of these grain and nutritional abode due to the presence of high phytochemical
properties and traces minerals as compared to usual white rice. Increasing demand for local
grains increases the market for Red Rice based products.

The government is now introducing initiatives due to a particular nutrient deficiency in various
demographic. These initiatives are creating awareness in consumers as well as producers for use
of functional products in our daily life to full fill the daily requirement of nutrients which result
in wider acceptance of these innovative products.

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 PM FME‐ Detailed Project Report of Red Rice Flakes Unit

2.3. RAW MATERIAL DESCRIPTION:

The only raw material required for production of red rice flakes is the particular variety of paddy.

3. PROCESS FLOW CHART

Receiving of raw material

Before paddy is unloaded, some samples are taken to check quality of raw material to determine
whether it is suitable for end product. Based on these tests, the storage condition of kernels is
determined. The right heat, relative humidity and air must be maintained to prevent rice from
sprouting or fermenting.

Cleaning and grading

The objective of cleaning is to eliminate foreign material such as stones, husk, stick, metals,
plastics, threads and unwanted grain particles. Air current act as a vacuum cleaner. It removes
anything lighter than kernel required weight like dust and other impurities.

Soaking
Graded and sorted paddy is soaked in hot water 24 – 26 hours. The objective of this step is to
soften the grain to achieve maximum recovery and minimize breakage during flaking. Draining
in the excess water next morning.

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 PM FME‐ Detailed Project Report of Red Rice Flakes Unit

Drying and roasting

The paddy after soaking is dried. The final moisture content after drying 16 – 17 % and tempered
for 3 – 4hours. The paddy after drying is roasted to remove remaining moisture and improve
crispiness.

Flaking
The paddy is fed into flaking machine after removal of sand. The rollers of flaking machine are
adjusted according to the fineness of flake desired. Paddy is pressed in fine flakes in short time.
By pressing scrapers against the rim all flakes are collected near the centre of the drum and are
removed by hand.

Sieving
The flakes are passed through sieves to remove uneven and unwanted material and to segregate
flakes of even size. Finally, they are packed. During this process the average yield of even sizes
flakes is around 80%, 10% is the in-process waste and 10% is the bran which has a separate
market.

Packing
The sorted and graded flakes thus obtained are packed in suitable polythene lined bags and
pouches.

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 PM FME‐ Detailed Project Report of Red Rice Flakes Unit

Receving of raw
material

Cleaning and
grading

Soaking

Drying and
roasting

Flaking

Seiving

Packing

Flow chart of red rice flakes

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 PM FME‐ Detailed Project Report of Red Rice Flakes Unit

4. ECONOMICS OF THE PROJECT

4.1. BASIS & PRESUMPTIONS

1. Production Capacity of Red Rice Flakes is 150 kg per hr. First year, Capacity has been taken
@ 50%.

2. Working shift of 8 hours per day has been considered.

3. Raw Material stock is for 15 days and Finished goods Closing Stock has been taken for 15
days.

4. Credit period to Sundry Debtors has been given for 10 days.

5. Credit period by the Sundry Creditors has been provided for 7 days.

6. Depreciation and Income tax has been taken as per the Income tax Act, 1961.

7. Interest on working Capital Loan and Term loan has been taken at 11%.

8. Salary and wages rates are taken as per the Current Market Scenario.

9. Power Consumption has been taken at 18 KW.

10. Increase in sales and raw material costing has been taken @ 5% on a yearly basis.

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 PM FME‐ Detailed Project Report of Red Rice Flakes Unit

4.2. CAPACITY, UTILIZATION, PRODUCTION & OUTPUT

COMPUTATION OF PRODUCTION OF RED RICE FLAKES

Items to be Manufactured
Red Rice Flakes

Machine capacity Per hour 150 Kg

Total working Hours 8
Machine capacity Per Day 1,200 Kg
Working days in a month 25 Days
Working days per annum 300
Wastage Considered 10%
Raw material requirement 360000 Kg
Final Output per annum after wastage 324000 Kg
Final Product to be packed in 1 kg Packet
Number of Packets per annum 324000 1 Kg Packet

Production of Red Rice Flakes

Production Capacity KG
1st year 50% 1,62,000
2nd year 55% 1,78,200
3rd year 60% 1,94,400
4th year 65% 2,10,600
5th year 70% 2,26,800

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 PM FME‐ Detailed Project Report of Red Rice Flakes Unit

Raw Material Cost

Year Capacity Rate Amount
Utilisation (per Kg) (Rs. in lacs)
1st year 50% 18.00 32.40

2nd year 55% 19.00 37.62

3rd year 60% 20.00 43.20
4th year 65% 21.00 49.14
5th year 70% 22.00 55.44

COMPUTATION OF SALE

Particulars 1st year 2nd year 3rd year 4th year 5th year
Op Stock - 8,100 8,910 9,720 10,530

Production 1,62,000 1,78,200 1,94,400 2,10,600 2,26,800

Less : Closing Stock 8,100 8,910 9,720 10,530 11,340
Net Sale 1,53,900 1,77,390 1,93,590 2,09,790 2,25,990
Sale price per packet 44.00 46.00 48.00 50.00 53.00
Sales (in Lacs) 67.72 81.60 92.92 104.90 119.77

4.3. PREMISES/INFRASTRUCTURE

The approximate total area required for complete factory setup is 2500-3000 Sq. ft. for
smooth production including storage area. It is expected that the premises will be on rental.

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 PM FME‐ Detailed Project Report of Red Rice Flakes Unit

4.4. MACHINERY & EQUIPMENTS

Machine Name Description Machine Image.

Vibrating grain A vibrating grain separator is a
separator multifunctional machinery used for pre-
treatment and cleaning. Adopting high
frequency and small vibrating
amplitude motor, it can efficiently
separate and clean impurities of
different sizes. The outlet is equipped
with a circulation air separator to
remove dust and light impurities.

Silos or storage Silos are used for the storage of grain

bin and flour in the mill. The material of
silo should protect the grains from the
harsh environment of outside. There
will be one or more discharge hole in
the bottom depending on the different
material and storage capacity.

Tray dryer Industrial tray drying machine / Hot air-

drying machine is made with stainless
steel and equipped with plastic,
stainless steel and customized drying
racks. The drying method can be co
current or counter current air flow. The
temperature is controlled and speed of
the conveyor can be adjusted according
to the drying time required. The heating
source is electricity to generate hot air.

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 PM FME‐ Detailed Project Report of Red Rice Flakes Unit

Paddy roasting Hot air as the drying medium, the heat

machine energy works on roasted paddy, which
is constantly propelled by propulsion
device in roasting process and also
lower production costs. Principle of
adopting rotary drum, heat conduction
and heat radiation. It also consists of
dust fog exhaust fan system.

Flaking machine The flaking machine consists of two

rollers. The speed ratio of flaking rolls
can be set precisely via control system.
this drive principle as well as the
automatic roll adjustment with spindle,
instead of hydraulics, improves food
safety.

Packaging Packaging machine is used for filling,

machine sealing, cutting, heating packets of rice
flakes. packaging speed can be changed
according to the speed of production. It
involves setting up of parameters such
as bag length and weight followed by
sealing of bag and final product
delivered by conveyor.

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 PM FME‐ Detailed Project Report of Red Rice Flakes Unit

Material These Equipment’s are used for

handling and material handling. Other equipment’s
other like water pumps, weighing machine,
Equipment’s etc are also used.

Machine Unit Rate Price

Vibrating grain separator 1 145000 145000
Tray dryer 1 90000 90000
Paddy roasting machine 1 140000 140000

Flaking machine 1 350000 350000

Packaging machine 1 280000 280000

Material handling and other equipment’s (Bins, - 300000 300000

trolley, conveyor, silos, weighing machine, etc.)

Note: Total Machinery cost shall be Rs 13.05 lakh including equipment’s but excluding
GST and Transportation Cost.

4.5. MISCELLANEOUS FIXED ASSETS

 Water Supply Arrangements
 Furniture & Fixtures
 Computers & Printers

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4.6. TOTAL COST OF PROJECT

COST OF PROJECT
(in Lacs)

PARTICULARS Amount

Land & Building Owned/Rented

Plant & Machinery 13.05
Miscellaneous Assets 3.00
Working capital 5.94
Total 21.99

4.7. MEANS OF FINANCE

MEANS OF FINANCE

PARTICULARS AMOUNT
Own Contribution (min 10%) 2.19
Subsidy @35%(Max. Rs 10 Lac) 5.62
Term Loan @ 55% 8.83
Working Capital (Bank Finance) 5.35
Total 21.99

4.8. TERM LOAN: Term loan of Rs. 8.83 Lakh is required for project cost of
Rs. 21.99 Lakh.

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 PM FME‐ Detailed Project Report of Red Rice Flakes Unit

4.9. TERM LOAN REPAYMENT& INTEREST SCHEDULE

REPAYMENT SCHEDULE OF TERM LOAN

Interest 11.00%
Closing
Year Particulars Amount Addition Total Interest Repayment Balance
1st Opening Balance

1st month - 8.14 8.14 - - 8.14

2nd month 8.14 - 8.14 0.07 - 8.14

3rd month 8.14 - 8.14 0.07 - 8.14

4th month 8.14 - 8.14 0.07 8.14

5th month 8.14 - 8.14 0.07 8.14

6th month 8.14 - 8.14 0.07 8.14

7th month 8.14 - 8.14 0.07 0.15 7.99

8th month 7.99 - 7.99 0.07 0.15 7.84

9th month 7.84 - 7.84 0.07 0.15 7.69

10th month 7.69 - 7.69 0.07 0.15 7.54

11th month 7.54 - 7.54 0.07 0.15 7.39

12th month 7.39 - 7.39 0.07 0.15 7.24

0.80 0.90
2nd Opening Balance

1st month 7.24 - 7.24 0.07 0.15 7.08

2nd month 7.08 - 7.08 0.06 0.15 6.93

3rd month 6.93 - 6.93 0.06 0.15 6.78

4th month 6.78 - 6.78 0.06 0.15 6.63

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 PM FME‐ Detailed Project Report of Red Rice Flakes Unit

5th month 6.63 - 6.63 0.06 0.15 6.48

6th month 6.48 - 6.48 0.06 0.15 6.33

7th month 6.33 - 6.33 0.06 0.15 6.18

8th month 6.18 - 6.18 0.06 0.15 6.03

9th month 6.03 - 6.03 0.06 0.15 5.88

10th month 5.88 - 5.88 0.05 0.15 5.73

11th month 5.73 - 5.73 0.05 0.15 5.58

12th month 5.58 - 5.58 0.05 0.15 5.43

0.70 1.81
3rd Opening Balance

1st month 5.43 - 5.43 0.05 0.15 5.28

2nd month 5.28 - 5.28 0.05 0.15 5.13

3rd month 5.13 - 5.13 0.05 0.15 4.97

4th month 4.97 - 4.97 0.05 0.15 4.82

5th month 4.82 - 4.82 0.04 0.15 4.67

6th month 4.67 - 4.67 0.04 0.15 4.52

7th month 4.52 - 4.52 0.04 0.15 4.37

8th month 4.37 - 4.37 0.04 0.15 4.22

9th month 4.22 - 4.22 0.04 0.15 4.07

10th month 4.07 - 4.07 0.04 0.15 3.92

11th month 3.92 - 3.92 0.04 0.15 3.77

12th month 3.77 - 3.77 0.03 0.15 3.62

0.51 1.81
4th Opening Balance
1st month 3.62 - 0.03 0.15 3.47

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 PM FME‐ Detailed Project Report of Red Rice Flakes Unit

3.62

2nd month 3.47 - 3.47 0.03 0.15 3.32

3rd month 3.32 - 3.32 0.03 0.15 3.17

4th month 3.17 - 3.17 0.03 0.15 3.01

5th month 3.01 - 3.01 0.03 0.15 2.86

6th month 2.86 - 2.86 0.03 0.15 2.71

7th month 2.71 - 2.71 0.02 0.15 2.56

8th month 2.56 - 2.56 0.02 0.15 2.41

9th month 2.41 - 2.41 0.02 0.15 2.26

10th month 2.26 - 2.26 0.02 0.15 2.11

11th month 2.11 - 2.11 0.02 0.15 1.96

12th month 1.96 - 1.96 0.02 0.15 1.81

0.31 1.81
5th Opening Balance

1st month 1.81 - 1.81 0.02 0.15 1.66

2nd month 1.66 - 1.66 0.02 0.15 1.51

3rd month 1.51 - 1.51 0.01 0.15 1.36

4th month 1.36 - 1.36 0.01 0.15 1.21

5th month 1.21 - 1.21 0.01 0.15 1.06

6th month 1.06 - 1.06 0.01 0.15 0.90

7th month 0.90 - 0.90 0.01 0.15 0.75

8th month 0.75 - 0.75 0.01 0.15 0.60

9th month 0.60 - 0.60 0.01 0.15 0.45

10th month 0.45 - 0.45 0.00 0.15 0.30

11th month 0.30 - 0.00 0.15 0.15

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0.30

12th month 0.15 - 0.15 0.00 0.15 -

0.11 1.81
DOOR TO DOOR 60 MONTHS
MORATORIUM
PERIOD 6 MONTHS
REPAYMENT PERIOD 54 MONTHS

4.10. WORKING CAPITAL CALCULATIONS

COMPUTATION OF CLOSING STOCK & WORKING CAPITAL (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Finished Goods
2.82 3.22 3.64 4.07 4.56

Raw Material
1.62 1.88 2.16 2.46 2.77
Closing Stock 4.44 5.11 5.80 6.53 7.33

COMPUTATION OF WORKING CAPITAL REQUIREMENT

TRADITIONAL METHOD (in Lacs)
Particulars Amount Own Margin Bank Finance
Finished Goods & Raw Material 4.44
Less : Creditors 0.76
Paid stock 3.69 10% 0.37 90% 3.32
Sundry Debtors 2.26 10% 0.23 90% 2.03
5.94 0.59 5.35

MPBF 5.35
WORKING CAPITAL LIMIT DEMAND ( from Bank) 5.35
Working Capital Margin 0.59

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4.11. SALARY & WAGES

BREAK UP OF LABOUR CHARGES

Particulars Wages No of Total

Rs. per Month Employees Salary

Plant Operator 14,000 3 42,000

Supervisor 16,000 1 16,000
Skilled (in thousand rupees) 12,000 2 24,000
Unskilled (in thousand rupees) 8,000 3 24,000
Total salary per month 1,06,000
Total annual labour charges (in lacs) 12.72

BREAK UP OF STAFF SALARY CHARGES

Particulars Salary No of Total

Rs. per Month Employees Salary
Administrative Staff 6,500 2 13,000
Manager 18,000 1 18,000
Accountant 15,000 1 15,000
Total salary per month 46,000
Total annual Staff charges (in lacs) 5.52

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4.12 POWER REQUIREMENT

Utility Charges (per month)

Particulars value Description
Power connection required 18 KWH
consumption per day 144 units

Consumption per month 3,600 units

Rate per Unit 10 Rs.
power Bill per month 36,000 Rs.

4.13. DEPRECIATION CALCULATION

COMPUTATION OF DEPRECIATION (in Lacs)

Description Plant & Machinery Miss. Assets TOTAL
Rate of Depreciation 15.00% 10.00%
Opening Balance - - -

Addition 13.05 3.00 16.05

Total 13.05 3.00 16.05
Less : Depreciation 1.96 0.30 2.26
WDV at end of Year 11.09 2.70 13.79
Additions During The Year - - -
Total 11.09 2.70 13.79
Less : Depreciation 1.66 0.27 1.93
WDV at end of Year 9.43 2.43 11.86
Additions During The Year - - -
Total 9.43 2.43 11.86
Less : Depreciation 1.41 0.24 1.66
WDV at end of Year 8.01 2.19 10.20
Additions During The Year - - -
Total 8.01 2.19 10.20
Less : Depreciation 1.20 0.22 1.42
WDV at end of Year 6.81 1.97 8.78
Additions During The Year - - -
Total 6.81 1.97 8.78
Less : Depreciation 1.02 0.20 1.22
WDV at end of Year 5.79 1.77 7.56

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4.14. REPAIR & MAINTENANCE: Repair & Maintenance is 3.0% of Gross Sale.

4.15. PROJECTIONS OF PROFITABILITY ANALYSIS

PROJECTED PROFITABILITY STATEMENT (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Capacity Utilisation % 50% 55% 60% 65% 70%

SALES
Gross Sale
Red Rice Flakes 67.72 81.60 92.92 104.90 119.77

Total 67.72 81.60 92.92 104.90 119.77

COST OF SALES
Raw Material Consumed 32.40 37.62 43.20 49.14 55.44
Electricity Expenses 4.32 4.97 5.71 6.57 7.23
Depreciation 2.26 1.93 1.66 1.42 1.22
Wages & labour 12.72 14.25 15.67 16.92 18.96
Repair & maintenance 2.03 2.45 2.79 3.15 3.59
Packaging 2.71 3.26 3.72 4.20 4.79
Cost of Production 56.44 64.48 72.75 81.40 91.23
Add: Opening Stock /WIP - 2.82 3.22 3.64 4.07
Less: Closing Stock /WIP 2.82 3.22 3.64 4.07 4.56
Cost of Sales 53.62 64.08 72.33 80.97 90.73
GROSS PROFIT 14.10 17.52 20.59 23.93 29.04
20.82% 21.47% 22.16% 22.81% 24.25%
Salary to Staff 5.52 6.62 7.29 7.87 8.97
Interest on Term Loan 0.87 0.76 0.55 0.33 0.12
Interest on working Capital 0.59 0.59 0.59 0.59 0.59
Rent 3.60 3.96 4.36 4.79 5.27
selling & adm exp 1.69 2.04 2.32 2.62 2.99
TOTAL 12.27 13.98 15.10 16.20 17.94
NET PROFIT 1.83 3.54 5.49 7.72 11.10
2.70% 4.34% 5.91% 7.36% 9.27%
Taxation - - 0.23 0.69 1.47
PROFIT (After Tax) 1.83 3.54 5.26 7.03 9.63

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4.16. BREAK EVEN POINT ANALYSIS

BREAK EVEN POINT ANALYSIS

Year I II III IV V

Net Sales & Other Income 67.72 81.60 92.92 104.90 119.77
Less : Op. WIP Goods - 2.82 3.22 3.64 4.07
Add : Cl. WIP Goods 2.82 3.22 3.64 4.07 4.56

Total Sales 70.54 82.00 93.34 105.33 120.27

Variable & Semi Variable Exp.

Raw Material Consumed 32.40 37.62 43.20 49.14 55.44
Electricity Exp/Coal Consumption at 85% 3.67 4.22 4.86 5.58 6.14
Wages & Salary at 60% 10.94 12.52 13.77 14.88 16.76
Selling & adminstrative Expenses 80% 1.35 1.63 1.86 2.10 2.40
Interest on working Capital 0.588365 0.588365 0.588365 0.588365 0.588365
Repair & maintenance 2.03 2.45 2.79 3.15 3.59
Packaging 2.71 3.26 3.72 4.20 4.79
Total Variable & Semi Variable Exp 53.70 62.30 70.78 79.63 89.71
Contribution 16.84 19.70 22.55 25.70 30.56

Fixed & Semi Fixed Expenses

Electricity Exp/Coal Consumption at 15% 0.65 0.75 0.86 0.99 1.08
Wages & Salary at 40% 7.30 8.35 9.18 9.92 11.17
Interest on Term Loan 0.87 0.76 0.55 0.33 0.12
Depreciation 2.26 1.93 1.66 1.42 1.22
Selling & adminstrative Expenses 20% 0.34 0.41 0.46 0.52 0.60
Rent 3.60 3.96 4.36 4.79 5.27
Total Fixed Expenses 15.01 16.16 17.07 17.97 19.46

Capacity Utilization 50% 55% 60% 65% 70%

OPERATING PROFIT 1.83 3.54 5.49 7.72 11.10
BREAK EVEN POINT 45% 45% 45% 45% 45%
BREAK EVEN SALES 62.87 67.25 70.63 73.67 76.59

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4.17. PROJECTED BALANCE SHEET

PROJECTED BALANCE SHEET (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Liabilities

Capital
opening balance 7.64 8.68 9.94 11.48
Add:- Own Capital 2.19
Add:- Retained Profit 1.83 3.54 5.26 7.03 9.63
Less:- Drawings 2.00 2.50 4.00 5.50 7.50
Subsidy/grant 5.62
Closing Balance 7.64 8.68 9.94 11.48 13.61
Term Loan 7.85 5.89 3.92 1.96 -
Working Capital Limit 5.35 5.35 5.35 5.35 5.35
Sundry Creditors 0.76 0.88 1.01 1.15 1.29
Provisions & Other Liab 0.40 0.50 0.60 0.72 0.86
TOTAL : 21.99 21.29 20.82 20.65 21.11
Assets
Fixed Assets ( Gross) 16.05 16.05 16.05 16.05 16.05
Gross Dep. 2.26 4.19 5.85 7.27 8.49
Net Fixed Assets 13.79 11.86 10.20 8.78 7.56

Current Assets
Sundry Debtors 2.26 2.72 3.10 3.50 3.99
Stock in Hand 4.44 5.11 5.80 6.53 7.33
Cash and Bank 1.50 1.61 1.73 1.85 2.23
TOTAL : 21.99 21.29 20.82 20.65 21.11

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4.18. CASH FLOW STATEMENT

PROJECTED CASH FLOW STATEMENT (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
SOURCES OF FUND

Own Margin 2.19

Net Profit 1.83 3.54 5.49 7.72 11.10
Depriciation & Exp. W/off 2.26 1.93 1.66 1.42 1.22
Increase in Cash Credit 5.35 - - - -
Increase In Term Loan 8.83 - - - -
Increase in Creditors 0.76 0.12 0.13 0.14 0.15
Increase in Provisions & Oth lib 0.40 0.10 0.10 0.12 0.14
Sunsidy/grant 5.62
TOTAL : 27.23 5.70 7.38 9.40 12.61
APPLICATION OF FUND
Increase in Fixed Assets 16.05
Increase in Stock 4.44 0.66 0.69 0.73 0.81
Increase in Debtors 2.26 0.46 0.38 0.40 0.50
Repayment of Term Loan 0.98 1.96 1.96 1.96 1.96

Drawings 2.00 2.50 4.00 5.50 7.50

Taxation - - 0.23 0.69 1.47
TOTAL : 25.73 5.59 7.26 9.28 12.23

Opening Cash & Bank Balance - 1.50 1.61 1.73 1.85

Add : Surplus 1.50 0.11 0.12 0.12 0.38
Closing Cash & Bank Balance 1.50 1.61 1.73 1.85 2.23

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 PM FME‐ Detailed Project Report of Red Rice Flakes Unit

4.19. DEBT SERVICE COVERAGE RATIO

CALCULATION OF D.S.C.R

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

CASH ACCRUALS 4.09 5.48 6.92 8.45 10.85

Interest on Term Loan 0.87 0.76 0.55 0.33 0.12
Total 4.96 6.24 7.47 8.79 10.97

REPAYMENT
Instalment of Term Loan 0.98 1.96 1.96 1.96 1.96
Interest on Term Loan 0.87 0.76 0.55 0.33 0.12

Total 1.85 2.73 2.51 2.29 2.08

DEBT SERVICE COVERAGE RATIO 2.68 2.29 2.97 3.83 5.28

AVERAGE D.S.C.R. 3.35

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