Project Report Dairy Farming

1 M/s THE HIMALAYA’S DAIRY FARM, VILL. BASHING, P.O. BABELI- KULLU (H.P.) PROJECT REPORT On Dairy Farming and Milk Distribution UNDER NAME AND STYLE OF THE HIMALAYA’S DAIRY FARM VILLAGE BASHING POST OFFICE BABELI TEHSIL AND DISTRICT KULLU (HP) Promoter(s) Sh Jitender S/o Shri Amar Chand R/o House No 67, Village Rumsu, Post Office Naggar Tehsil and Distt Kullu (HP)-175130 Project Report prepared by: M/s Sood Consultants 123/2, Inner Akhara Bazar Kullu Mob: 94180-02685 2 M/s THE HIMALAYA’S DAIRY FARM, VILL. BASHING, P.O. BABELI- KULLU (H.P.) Responsibility Statement TO WHOM IT MAY CONCERN  It is certified that the enclosed Project Report has been prepared on the basis of project information, relevant data and business targets/ estimates provided by the promoter(s).  The accuracy of the business information and source of all relevant data is the responsibility of the promoter(s).  Reasonable care has been taken to ensure that the calculations/ forecasts made in the enclosed Project Report are correct.  We do not hold any opinion regarding the accuracy of the forecasts made in the Project Report. For Sood Consultants (Sandeep Sood) 3 M/s THE HIMALAYA’S DAIRY FARM, VILL. BASHING, P.O. BABELI- KULLU (H.P.) PROJECT AT A GLANCE 1 PROJECT DAIRY FARMING UNIT 2 NAME OF THE UNIT M/S THE HIMALAYA'S DAIRY FARM 3 LOCATION OF THE UNIT VILLAGE BASHING P.O. BABELI TEHSIL & DISTRICT KULLU (HP) 4 STATUS SMALL SCALE 5 CONSTITUTION PROP. 6 NAME OF THE PROMOTER(S) SH. JITENDER S/O SH. AMAR CHAND 7 CATAGEORY OF THE PROMOTER MALE 8 CAPACITY 500 Ltr/ day 9 COST OF PROJECT (Rs in Lacs) LAND 0.00 (Leased) BUILDING/ CIVIL WORK 0.00 (Leased) MISC FIXED ASSETS 11.00 WORKING CAPITAL 4.90 TOTAL 15.90 10 MEANS OF FINANCE (Rs in Lacs) PROMOTER’S CONTRIBUTION 3.90 TERM LOAN 8.00 WORKING CAPITAL LOAN (CASH CREDIT LIMIT) 4.00 TOTAL 15.90 11 PAYBACK PERIOD OF TERM LOAN 7 (YEARS) 12 TECHNICAL KNOW-HOW Promoter is a young, progressive Agri-Business entrepreneur and orchardist. 13 EMPLOYMENT POTENTIAL 1 Skilled/ Semi Skilled and 3 unskilled workers shall be employed. 14 TIME SCHEDULE FOR COMPLETION 6 Months 15 NO OF WORKING DAYS 365 Days 4 M/s THE HIMALAYA’S DAIRY FARM, VILL. BASHING, P.O. BABELI- KULLU (H.P.) 17 IMPROTANT RATIO ANALYSIS DEBT EQUITY RATIO 3.08 :1 PROMOTER'S CONTRIBUTION TO TOTAL PROJECT COST 24.52% G.P. RATIO 52.32% BREAK EVEN POINT (ON THIRD YEAR BASIS) 24.41% BREAK EVEN POINT (IN TERM OF FULL CAPACITY UTILISATION) 17.09% BREAK EVEN POINT (IN TERM OF SALES REALISATIN) 3.59 Lacs DEBT SERVICE COVERAGE RATIO (AVERAGE) 4.12 5 M/s THE HIMALAYA’S DAIRY FARM, VILL. BASHING, P.O. BABELI- KULLU (H.P.) TECHO - ECONOMIC FEASIBILITY REPORT FINANCIAL ASPECTS PROJECT COST 1 Land/ Building Land & Building are to be leased on an annual lease rent of Rs 1.00 Lac which may be increased by 10% p.a. 2 Misc Fixed Assets 20 Jersey breed cows are to be purchased @ Rs 40,000/- each. Other fixed assets will cost about Rs 3,00,000/-. 3 Working Capital During 1st year of operation, Rs 4.90 Lac of Working Capital will be required. Cash Credit Loan of Rs 4.00 Lac shall be arranged from bank and Rs 0.90 Lac will be promoter's share. MEANS OF FINANCE 1 Promoter's Share Promoter will invest Rs 3.90 Lac which is 24.52% of the total cost of project. 2 Term Loan A Term Loan of Rs 8.00 Lac shall be raised from Bank for purchase of Cows/ MFA 3 Working Capital Loan A working capital loan of Rs 4.00 Lac, during 1st year of operation, will be availed from bank to meet the working capital requirements. COST OF PROJECT & PROFITABILITY 1 Raw Materials Main raw-materials of this project are easily available in the local market. 2 Manpower The unit shall employ 1 skilled / Semi-Skilled and 3 unskilled worker. The required man-power is easily available. 3 Electricity & Power No special arrangement is to be made for Electricity and power. A connected load of 5 KW shall be sufficient. 4 Admn. Selling & Distribution Expenses Selling expenses are calculated @3% on the annual Sales realization. 5 Repair & Maintenance It is assumed that these expenses will be 1% of the total cost of Building, Plant & Machinery and other assets. 6 Depreciation Depreciation is calculated by WDVM @ 5% p.a. on Buildings and Misc Fixed Assets and @10% p.a. on Plant & Machinery. 6 M/s THE HIMALAYA’S DAIRY FARM, VILL. BASHING, P.O. BABELI- KULLU (H.P.) TOTAL PROJECT COST & MEANS OF FINANCE A. TOTAL PROJECT COST Sr No Particulars Amount (Rs in Lac) 1 Land 0.00 (Leased) 2 Building/ Shed 0.00 (Leased) 3 Misc Fixed Assets 11.00 4 Working Capital 4.90 TOTAL 15.90 B. MEANS OF FINANCE Sr No Particulars Amount (Rs in Lac) 1 Promoter's Contribution 3.90 2 Term Loan 8.00 3 Working Capital Loan (CCL) 4.00 TOTAL 15.90 Detail of Misc Fixed Assets Sr DESCRIPTION AMOUNT 1 LIVE STOCK 8,00,000.00 20 Jersey Cows @ Rs 40,000/- each 2 Equipments/ Utensils / Furniture & Fixture/ OFA 2,40,000.00 Add: Cost of Transportation, taxes etc on above 60,000.00 11,00,000.00 RUPEES IN LAC 11.00 7 M/s THE HIMALAYA’S DAIRY FARM, VILL. BASHING, P.O. BABELI- KULLU (H.P.) SALES/ REVENUE FORECAST DESCRIPTION Qty ( in Ltr) Rate (Rs/ Ltr) AMOUNT 1. SALE OF FARM MILK 120000 25.00 30,00,000.00 (20 cows x 240 days x 25 LPD) TOTAL SALES/ REVENUE PER ANNUM 30,00,000.00 TOTAL SALES PER ANNUM AT 100% CAPACITY 30,00,000.00 DETAILS OF ANNUNAL SALES/ REVENUE FORECAST (AMOUNT IN LACS) YEAR DESCRIPTION I YEAR II YEAR III YEAR IV YEAR V YEAR VI YEAR VII YEAR CAPACITY UTILISATION (%AGE) 60% 65% 70% 75% 75% 75% 75% MAXIMUM SALES REALISATIONS AT 100% CAPACITY 30.00 30.00 30.00 30.00 30.00 30.00 30.00 EXPECTED SALES REALISATIONS AT ACTUAL CAPACITY UTILISED 18.00 19.50 21.00 22.50 22.50 22.50 22.50 8 M/s THE HIMALAYA’S DAIRY FARM, VILL. BASHING, P.O. BABELI- KULLU (H.P.) ANNUAL RAW MATERIAL REQUIREMENT DESCRIPTION AMOUNT 1. COST OF FEED PER DAY 730000.00 (for 20 cows @ Rs 100/- per cow for 365 days) 2. COST OF VETERNITY AID/ INSURANCE ETC 109500.00 (for 20 cows @ Rs 15/- per cow for 365 days) TOTAL RM REQUIRED PER ANNUM 839500.00 TOTAL RAW METERIAL CONSUMPTION PER ANNUM 839500.00 WASTAGE/ MISHANDLING @ 2% 16790.00 TOTAL RAW METERIAL CONSUMPTION PER ANNUM 856290.00 DETAILS OF ANNUNAL RAW MATERIAL CONSUMED & PURCHASES (AMOUNT IN LACS) DESCRIPTION I YEAR II YEAR III YEAR IV YEAR V YEAR VI YEAR VII YEAR CAPACITY UTILISATION (%AGE) 60% 65% 70% 75% 75% 75% 75% MAXIMUM MATERIAL CONSUMPTION AT 100% CAPACITY 8.56 8.56 8.56 8.56 8.56 8.56 8.56 EXPECTED MATERIAL CONSUMPTION AT ACTUAL CAPACITY UTILISED (A) 5.14 5.57 5.99 6.42 6.42 6.42 6.42 CLOSING STOCK (B) 1.03 1.11 1.20 1.28 1.28 1.28 1.28 TOTAL (A+B) 6.17 6.68 7.19 7.71 7.71 7.71 7.71 LESS: OPENING STOCK 0.00 1.03 1.11 1.20 1.28 1.28 1.28 TOTAL PURCHASES 6.17 5.65 6.08 6.51 6.42 6.42 6.42 9 M/s THE HIMALAYA’S DAIRY FARM, VILL. BASHING, P.O. BABELI- KULLU (H.P.) REQUIREMENT OF WORKING CAPITAL S.No DESCRIPTION I YEAR II YEAR III YEAR IV YEAR V YEAR VI YEAR VII YEAR CURRENT ASSETS 1 RAW MATERIALS 1.28 1.39 1.50 1.61 1.61 1.61 1.61 2 WORK IN PROGRESS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3 FINISHED GOODS 2.15 2.34 2.53 2.74 2.83 2.93 3.04 4 DEBTORS 2.25 2.44 2.63 2.81 2.81 2.81 2.81 TOTAL CURRENT ASSETS (A) 5.68 6.16 6.66 7.16 7.25 7.35 7.46 CURRENT LIABILITIES 1 SUNDRY CREDITORS 0.77 0.71 0.76 0.81 0.80 0.80 0.80 TOTAL CURRENT LIABILITIES (B) 0.77 0.71 0.76 0.81 0.80 0.80 0.80 WORKING CAPITAL REQUIRED (A-B) 4.90 5.46 5.90 6.34 6.44 6.55 6.66 WORKING CAPITAL LOAN FROM BANK 4.00 4.00 4.00 4.00 4.00 4.00 4.00 PROMOTER'S SHARE/ MARGIN 0.90 1.46 1.90 2.34 2.44 2.55 2.66 % MARGIN OF PROMOTER ON W. C. 18.35% 26.72% 32.16% 36.93% 37.93% 38.89% 39.91% 10 M/s THE HIMALAYA’S DAIRY FARM, VILL. BASHING, P.O. BABELI- KULLU (H.P.) A) GENERAL STAFF S. NO. DESIGNATION NO'S SALARY AMOUNT P.M. (RS.) 1 MANAGER SELF 0.00 TOTAL SALARY (P.M.) 0 0.00 TOTAL SALARY (P.A.) 0.00 SAY RS. (IN LACS) 0.00 LACS B) WORK STAFF & LABOUR S. NO DESIGNATION NO'S SALARY AMOUNT P.M. (RS.) 1 SKILLED WORKER 1 8000.00 8000.00 2 UNSKILLED WORKER 3 5000.00 15000.00 TOTAL WAGES (P.M.) 4 23000.00 TOTAL WAGES (P.A.) 276000.00 SAY RS. (IN LACS) 2.76 LACS TOTAL SALARY & WAGES (P.A.) 276000.00 SAY RS. (IN LACS) 2.76 LACS 11 M/s THE HIMALAYA’S DAIRY FARM, VILL. BASHING, P.O. BABELI- KULLU (H.P.) DETAILS OF UTILITIES S.NO DESCRIPTION AMOUNT 1 ELECTRICITY & POWER 54000.00 (Contracted Load 5 Kw) (5 Kw x 300 days x 8 hrs x Rs 5.00/- x 0.9 PF) 2 WATER CONSUMPTION 60000.00 TOTAL COST OF UTILITIES (P.A.) 114000.00 AT 100% CAPACITY AMOUNT IN LACS 1.14 DESCRIPTION I YEAR II YEAR III YEAR IV YEAR V YEAR VI YEAR VII YEAR CAPACITY UTILISATION (%AGE) 60% 65% 70% 75% 75% 75% 75% MAXIMUM UTILITIES CONSUMED AT 100% CAPACITY 1.14 1.14 1.14 1.14 1.14 1.14 1.14 EXPECTED UTILITIES CONSUMED AT ACTUAL CAPACITY UTILISED 0.68 0.74 0.80 0.86 0.86 0.86 0.86 NOTES: 1. ELECTRICITY SUPPLY IS AVAILABLE AT UNIT SITE. 2. WATER SUPPLY & OTHER REQUIRED CONSUMABLES ARE ALSO EASILY ARRANGABLE AT SITE. 12 M/s THE HIMALAYA’S DAIRY FARM, VILL. BASHING, P.O. BABELI- KULLU (H.P.) DETAILS OF ADMN, SELLING & DISTRUBUTION EXPENSES (AMOUNT IN LACS) DESCRIPTION I YEAR II YEAR III YEAR IV YEAR V YEAR VI YEAR VII YEAR ADMN. S & D EXPENSES (PA) 0.90 0.98 1.05 1.13 1.13 1.13 1.13 NOTES: THESE EXPENSES ARE CALCULATED @ 5% OF THE TOTAL SALES TURNOVER PER ANNUM DETAILS OF REPAIR & MAINTENANCE EXPENSES (AMOUNT IN LACS) DESCRIPTION I YEAR II YEAR III YEAR IV YEAR V YEAR VI YEAR VII YEAR REPAIR & MAINTENANCE EXPENSES (P.A.) 0.03 0.06 0.09 0.09 0.09 0.09 0.09 NOTES: IT IS ASSUMED THAT REPAIR & MAINTENANCE COST WILL BE @ 1% FOR THE IST YEAR, 2% II YEAR AND 3% DURING IIIRD YEAR ONWARDS OF THE TOTAL COST OF BUILDING, MACHINERY AND OTHER FIXED ASSETS 13 M/s THE HIMALAYA’S DAIRY FARM, VILL. BASHING, P.O. BABELI- KULLU (H.P.) DEPRECIATION SCHEDULE YEAR PARTICULARS BUILDING MFA TOTAL DEPRECIATION RATE % 0.00% 10.00% BASIC COST 0.00 3.00 3.00 I DEPRECIATION 0.00 0.30 0.30 W.D.V 0.00 2.70 2.70 II DEPRECIATION 0.00 0.27 0.27 W.D.V 0.00 2.43 2.43 III DEPRECIATION 0.00 0.24 0.24 W.D.V 0.00 2.19 2.19 IV DEPRECIATION 0.00 0.22 0.22 W.D.V 0.00 1.97 1.97 V DEPRECIATION 0.00 0.20 0.20 W.D.V 0.00 1.77 1.77 VI DEPRECIATION 0.00 0.18 0.18 W.D.V 0.00 1.59 1.59 VII DEPRECIATION 0.00 0.16 0.16 W.D.V 0.00 1.43 1.43 NOTES DEPRECIATION HAS BEEN CALCULATED WITH WRITTEN DOWN VALUE METHOD. 14 M/s THE HIMALAYA’S DAIRY FARM, VILL. BASHING, P.O. BABELI- KULLU (H.P.) INTEREST CALCULATION & REPAYMENT OF TERM - LOAN AMOUNT OF TERM LOAN = 8.00 LACS AMOUNT OF SUBSIDY = 0.00 LACS AMOUNT REFUNDABLE = 8.00 LACS NO OF INSTALLMENTS = 78 MONTHLY AMOUNT OF EMI (EXCLUDING INTEREST) 0.10260 Lac (6 MONTH'S MOROTORIUM PERIOD) RATE OF INTEREST P.A. 13.00% YEAR MONTH Opening Balance Repayment Yearly Repayment Closing Balance Interest Payable Yearly 1 1ST 8.00 0.00 8.00 0.09 2ND 8.00 0.00 8.00 0.09 3RD 8.00 0.00 8.00 0.09 4TH 8.00 0.00 8.00 0.09 5TH 8.00 0.00 8.00 0.09 6TH 8.00 0.00 8.00 0.09 7TH 8.00 0.10 7.90 0.09 8TH 7.90 0.10 7.79 0.09 9TH 7.79 0.10 7.69 0.08 10TH 7.69 0.10 7.59 0.08 11TH 7.59 0.10 7.49 0.08 12TH 7.49 0.10 0.62 7.38 0.08 1.02 2 1ST 7.38 0.10 7.28 0.08 2ND 7.28 0.10 7.18 0.08 3RD 7.18 0.10 7.08 0.08 4TH 7.08 0.10 6.97 0.08 5TH 6.97 0.10 6.87 0.08 6TH 6.87 0.10 6.77 0.07 7TH 6.77 0.10 6.67 0.07 8TH 6.67 0.10 6.56 0.07 9TH 6.56 0.10 6.46 0.07 10TH 6.46 0.10 6.36 0.07 11TH 6.36 0.10 6.26 0.07 12TH 6.26 0.10 1.23 6.15 0.07 0.89 3 1ST 6.15 0.10 6.05 0.07 2ND 6.05 0.10 5.95 0.07 3RD 5.95 0.10 5.85 0.06 4TH 5.85 0.10 5.74 0.06 5TH 5.74 0.10 5.64 0.06 6TH 5.64 0.10 5.54 0.06 7TH 5.54 0.10 5.44 0.06 8TH 5.44 0.10 5.33 0.06 9TH 5.33 0.10 5.23 0.06 10TH 5.23 0.10 5.13 0.06 11TH 5.13 0.10 5.03 0.06 12TH 5.03 0.10 1.23 4.92 0.05 0.73 15 M/s THE HIMALAYA’S DAIRY FARM, VILL. BASHING, P.O. BABELI- KULLU (H.P.) 4 1ST 4.92 0.10 4.82 0.05 2ND 4.82 0.10 4.72 0.05 3RD 4.72 0.10 4.62 0.05 4TH 4.62 0.10 4.51 0.05 5TH 4.51 0.10 4.41 0.05 6TH 4.41 0.10 4.31 0.05 7TH 4.31 0.10 4.21 0.05 8TH 4.21 0.10 4.10 0.05 9TH 4.10 0.10 4.00 0.04 10TH 4.00 0.10 3.90 0.04 11TH 3.90 0.10 3.79 0.04 12TH 3.79 0.10 1.23 3.69 0.04 0.57 5 1ST 3.69 0.10 3.59 0.04 2ND 3.59 0.10 3.49 0.04 3RD 3.49 0.10 3.38 0.04 4TH 3.38 0.10 3.28 0.04 5TH 3.28 0.10 3.18 0.04 6TH 3.18 0.10 3.08 0.03 7TH 3.08 0.10 2.97 0.03 8TH 2.97 0.10 2.87 0.03 9TH 2.87 0.10 2.77 0.03 10TH 2.77 0.10 2.67 0.03 11TH 2.67 0.10 2.56 0.03 12TH 2.56 0.10 1.23 2.46 0.03 0.41 6 1ST 2.46 0.10 2.36 0.03 2ND 2.36 0.10 2.26 0.03 3RD 2.26 0.10 2.15 0.02 4TH 2.15 0.10 2.05 0.02 5TH 2.05 0.10 1.95 0.02 6TH 1.95 0.10 1.85 0.02 7TH 1.85 0.10 1.74 0.02 8TH 1.74 0.10 1.64 0.02 9TH 1.64 0.10 1.54 0.02 10TH 1.54 0.10 1.44 0.02 11TH 1.44 0.10 1.33 0.02 12TH 1.33 0.10 1.23 1.23 0.01 0.25 7 1ST 1.23 0.10 1.13 0.01 2ND 1.13 0.10 1.03 0.01 3RD 1.03 0.10 0.92 0.01 4TH 0.92 0.10 0.82 0.01 5TH 0.82 0.10 0.72 0.01 6TH 0.72 0.10 0.62 0.01 7TH 0.62 0.10 0.51 0.01 8TH 0.51 0.10 0.41 0.01 9TH 0.41 0.10 0.31 0.00 10TH 0.31 0.10 0.21 0.00 11TH 0.21 0.10 0.10 0.00 12TH 0.10 0.10 1.23 0.00 0.00 0.09 16 M/s THE HIMALAYA’S DAIRY FARM, VILL. BASHING, P.O. BABELI- KULLU (H.P.) PROJECTED PROFITABLITY STATEMENT DESCRIPTION I YEAR II YEAR III YEAR IV YEAR V YEAR VI YEAR VII YEAR CAPACITY UTILISATION 60% 65% 70% 75% 75% 75% 75% INCOME SALES REALISATIONS 18.00 19.50 21.00 22.50 22.50 22.50 22.50 TOTAL (A) 18.00 19.50 21.00 22.50 22.50 22.50 22.50 COST OF PRODUCTION RAW MATERIAL RAW MATERIAL CONSUMED 5.14 5.57 5.99 6.42 6.42 6.42 6.42 DIRECT EXPENSES WAGES 2.76 3.04 3.34 3.67 4.04 4.45 4.89 UTILITIES 0.68 0.74 0.80 0.86 0.86 0.86 0.86 TOTAL COST OF PRODUCTION (B) 8.58 9.34 10.13 10.95 11.32 11.72 12.17 C. GROSS PROFIT (A - B) 9.42 10.16 10.87 11.55 11.18 10.78 10.33 ADMINISTRATIVE & SELLING EXPENSES LEASE RENT 1.00 1.10 1.21 1.33 1.46 1.61 1.77 SELLING & DISTRIBUTION EXPENSES 0.90 0.98 1.05 1.13 1.13 1.13 1.13 REPAIR & MAINTENTANCE 0.03 0.06 0.09 0.09 0.09 0.09 0.09 INTEREST ON W/C LOAN @ 13% 0.52 0.52 0.52 0.52 0.52 0.52 0.52 TOTAL (D) 2.45 2.66 2.87 3.07 3.20 3.35 3.51 PROFIT BEFORE INTT, DEPRECIATION & I.TAX (C-D) 6.97 7.50 8.00 8.48 7.98 7.43 6.83 INTEREST ON TERM LOAN 1.02 0.89 0.73 0.57 0.41 0.25 0.09 DEPRECIATION 0.30 0.27 0.24 0.22 0.20 0.18 0.16 TOTAL (E) 1.32 1.16 0.97 0.79 0.60 0.42 0.24 PROFIT BEFORE TAX 5.64 6.35 7.03 7.70 7.38 7.01 6.58 INCOME TAX 0.56 0.63 0.70 0.77 0.74 0.70 0.66 PROFIT AFTER TAX 5.08 5.71 6.33 6.93 6.64 6.31 5.92 17 M/s THE HIMALAYA’S DAIRY FARM, VILL. BASHING, P.O. BABELI- KULLU (H.P.) PROJECTED BALANCE SHEET DESCRIPTION I YEAR II YEAR III YEAR IV YEAR V YEAR VI YEAR VII YEAR LIABILITIES CAPITAL ACCOUNT OPENING BALANCE 3.90 7.18 10.49 13.82 17.14 19.79 21.49 ADD: NET PROFIT DURING THE YEAR 5.08 5.71 6.33 6.93 6.64 6.31 5.92 8.98 12.89 16.82 20.74 23.79 26.09 27.42 LESS: WITHDRAW LS 1.80 2.40 3.00 3.60 4.00 4.60 5.00 CLOSING BALANCE 7.18 10.49 13.82 17.14 19.79 21.49 22.42 SECURED LOANS TERM LOAN 7.38 6.15 4.92 3.69 2.46 1.23 0.00 WORKING CAPITAL LOAN 4.00 4.00 4.00 4.00 4.00 4.00 4.00 CURRENT LIABILITIES SUNDRY CREDITORS 0.77 0.71 0.76 0.81 0.80 0.80 0.80 TOTAL 19.33 21.35 23.50 25.65 27.05 27.53 27.22 ASSETS FIXED ASSETS GROSS BLOCK 3.00 3.00 3.00 3.00 3.00 3.00 3.00 LESS: DEPRECIATION 0.30 0.57 0.81 1.03 1.23 1.41 1.57 WRITTEN DOWN VALUE 2.70 2.43 2.19 1.97 1.77 1.59 1.43 NET CURRENT ASSETS INVENTORY 3.43 3.73 4.03 4.34 4.44 4.54 4.65 DEBTORS 2.25 2.44 2.63 2.81 2.81 2.81 2.81 CASH & BANK BALANCES 10.96 12.76 14.66 16.53 18.03 18.58 18.33 TOTAL 19.33 21.35 23.50 25.65 27.05 27.53 27.22 18 M/s THE HIMALAYA’S DAIRY FARM, VILL. BASHING, P.O. BABELI- KULLU (H.P.) PROJECTED CASH FLOW STATEMENTS FOR THE YEAR ENDED DESCRIPTION I YEAR II YEAR III YEAR IV YEAR V YEAR VI YEAR VII YEAR TERM LOAN 8.00 PROMOTER'S CONTRIBUTION 3.90 NET PROFIT BEFORE INTT, DEP. & TAXES 6.97 7.50 8.00 8.48 7.98 7.43 6.83 WORKING CAPITAL LOAN 4.00 INCREASE IN CREDITORS 0.77 -0.06 0.05 0.05 -0.01 0.00 0.00 TOTAL (A) 23.64 7.44 8.05 8.54 7.97 7.43 6.83 INCREASE IN FIXED ASSETS 3.00 REPAYMENT OF TERM LOAN 0.62 1.23 1.23 1.23 1.23 1.23 1.23 PAYMENT OF INTEREST 1.02 0.89 0.73 0.57 0.41 0.25 0.09 INCREASE IN SUNDRY DEBTORS 2.25 0.19 0.19 0.19 0.00 0.00 0.00 INCREASE IN INVENTORY 3.43 0.30 0.30 0.31 0.09 0.10 0.11 INCOME TAX 0.56 0.63 0.70 0.77 0.74 0.70 0.66 DRAWINGS BY PROMOTERS 1.80 2.40 3.00 3.60 4.00 4.60 5.00 TOTAL (B) 12.68 5.64 6.15 6.67 6.47 6.88 7.09 . OPENING BALANCE 0.00 10.96 12.76 14.66 16.53 18.03 18.58 NET INFLOW 10.96 1.80 1.90 1.87 1.50 0.55 -0.26 CLOSING BALANCE 10.96 12.76 14.66 16.53 18.03 18.58 18.33 19 M/s THE HIMALAYA’S DAIRY FARM, VILL. BASHING, P.O. BABELI- KULLU (H.P.) DEBT SERVICE COVERAGE RATIO DESCRIPTION I YEAR II YEAR III YEAR IV YEAR V YEAR VI YEAR VII YEAR FUNDS AVAILABLE FOR SERVICING DEBTS PROFIT AFTER TAX 5.08 5.71 6.33 6.93 6.64 6.31 5.92 DEPRECIATION 0.30 0.27 0.24 0.22 0.20 0.18 0.16 INTEREST ON TERM LOAN 1.02 0.89 0.73 0.57 0.41 0.25 0.09 TOTAL (A) 6.40 6.87 7.30 7.71 7.24 6.73 6.17 DEBTS TO BE SERVICED REPAYMENT OF TERM LOAN 0.62 1.23 1.23 1.23 1.23 1.23 1.23 INTEREST ON LOAN 1.02 0.89 0.73 0.57 0.41 0.25 0.09 TOTAL (B) 1.64 2.12 1.96 1.80 1.64 1.48 1.32 . D. S. C. R = A/B 3.91 3.24 3.73 4.29 4.42 4.56 4.69 AVG DSCR 28.84 /7 = 4.12 20 M/s THE HIMALAYA’S DAIRY FARM, VILL. BASHING, P.O. BABELI- KULLU (H.P.) CALCULATION OF INTERNAL RATE OF RETURN (BEFORE TAX) YEAR CASH OUT FLOW CASH IN FLOW NET CASH RECEIPT DISCOUNT RATE PRESENT VALUE OF NET CR 20% 25% 30% 20% 25% 30% 1 12.68 23.64 10.96 1.000 1.000 1.000 10.96 10.96 10.96 2 5.64 7.44 1.80 0.833 0.800 0.769 1.50 1.44 1.39 3 6.15 8.05 1.90 0.694 0.640 0.592 1.32 1.22 1.12 4 6.67 8.54 1.87 0.579 0.512 0.350 1.08 0.96 0.65 5 6.47 7.97 1.50 0.482 0.410 0.269 0.73 0.62 0.40 6 6.88 7.43 0.55 0.402 0.328 0.207 0.22 0.18 0.11 7 7.09 6.83 -0.26 0.335 0.262 0.159 -0.09 -0.07 -0.04 TOTAL 15.72 15.30 14.60 LOWER DISCOUNT RATE 25 30 15.72 29.90 RATE DIFFERENCE 5 PRESENT VALUE AT MIN. RATE 15.72 PRESENT VALUE AT LOWER RATE 15.30 PRESENT VALUE AT HIGHER RATE 14.60 PRESENT VALUE AT MIN RATE INTERNAL RATE OF RETURN= LOWER RATE + RATE DIFFERENCE x PV AT LOWER RATE+ PV AT HIGHER RATE INTERNAL RATE OF RETURN = 27.63 % 21 M/s THE HIMALAYA’S DAIRY FARM, VILL. BASHING, P.O. BABELI- KULLU (H.P.) BREAK EVEN POINT ANANLYSIS (BASED ON THIRD YEAR WORKING RESULTS) S. NO PARTICULARS AMOUNT P.A. (RS IN LACS) A SALES 21.00 B LESS: VARIABLE COST 1 RAW MATERIAL CONSUMED 5.99 2 WAGES 3.34 3 UTILITIES 0.80 4 SELLING EXPENSES 1.05 5 INTEREST ON W/C LOAN 0.52 11.70 C CONTRIBUTION (A - B) 9.30 D LESS; SEMI-VARIABLES & FIXED COST 1 REPAIR & MAINTENANCE 0.09 2 LEASE RENT 1.21 3 INTEREST ON TERM LOAN 0.73 4 DEPRECIATION 0.24 2.27 E NET PROFIT 7.03 F B.E.P. (IN TERMS OF CAPACITY UTILISATION) FIXED COST / CONTRIBUTION 2.27 24.41% 9.30 B.E.P. AT FULL CAPACITY 17.09% G B.E.P ( IN TERMS OF SALES REALISATION) F X A BEP IN TERMS OF CAPACITY X SALES 17.09% X 21.00 3.59 LACS