DETAILED PROJECT REPORT

PEPPERMINT OIL 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: [email protected]

Call: 0130-2281089
 PM FME‐ Detailed Project Report of Peppermint Oil Unit

TABLE OF CONTENTS

S No. Topic Page

Number
1. Project Summary 3
2. About the Product 4-5
3. Process Flow Chart 5-7
4. Economics of the Project 8-25
4.1. Basis & Presumptions 8
4.2. Capacity, Utilisation, Production & Output 9-10
4.3. Premises/Infrastructure 10
4.4. Machinery & Equipment’s 11-13
4.5. Misc. Fixed Assets 13
4.6. Total Cost of Project 14
4.7. Means of Finance 14
4.8 Term Loan 14
4.9. Term Loan repayment & interest schedule 15-18
4.10. Working Capital Calculations 18
4.11. Salaries/Wages 19
4.12. Power Requirement 20
4.13. Depreciation Calculation 20
4.14. Repairs & Maintenance 21
4.15. Projections of Profitability Analysis 21
4.16. Break Even Point Analysis 22
4.17. Projected Balance Sheet 23
4.18. Cash- Flow Statement 24
4.19. Debt-Service Coverage Ratio 25

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 PM FME‐ Detailed Project Report of Peppermint Oil Unit

1. PROJECT SUMMARY
1. Name of the proposed project : Peppermint Oil Unit
2. Nature of proposed project : Proprietorship/Company/Partnership
3. Proposed project capacity : 28500 bottles/annum (40,45,50,55&60%
capacity utilization in 1st to 5th Year
respectively)
4. Raw material : Peppermint Shoot (Stem & Leaves).
5. Major product outputs : Peppermint Oil
6. Total project cost : Rs. 13.71 Lakh
 Land development, building & Civil : Nil
Construction
 Machinery and equipment’s : Rs. 6.45 Lakh
 Miscellaneous Fixed Assets : Rs. 2.50 Lakh
 Working capital : Rs. 4.76 Lakh
8. Means of Finance
 Subsidy (max 10lakhs) : Rs. 3.13 Lakh

 Promoter’s contribution (min10%) : Rs. 1.36 Lakh

 Term loan : Rs. 4.92 Lakh

 Working Capital Requirement : Rs. 4.28 Lakh
9. Profit after Depreciation, Interest & Tax

 1styear : Rs. 1.41 Lakh

 2ndyear : Rs. 3.33 Lakh
 3rd year : Rs. 5.08 Lakh
 4th year : Rs. 7.08Lakh
 5th year : Rs. 9.3 5Lakh
11. Average DSCR : Rs. 5.06
12. Term loan repayment : 5 Years with 6 months grace period

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 PM FME‐ Detailed Project Report of Peppermint Oil Unit

2. ABOUT THE PRODUCT

2.1. PRODUCT INTRODUCTION:

Peppermint (Japanese Mint-Menta Japonesa), is a medicinal plant that has received more
attention from both food and pharmaceutical industries because of its health benefits for human
society. Peppermint oil is the essence of peppermint extracted into an oil. Some peppermint oils
are stronger than others. The strongest types are made using modern distillation techniques and
are called essential oils. Peppermint essential oil is the most common type of peppermint
oil available for purchase. It can be used for health, beauty, and cleaning purposes. Peppermint
contains a compound called menthol. Menthol is responsible for many of the benefits of
peppermint oils. Menthol also gives peppermint its taste, smell, and cooling sensation.
Peppermint oil is derived from extraction of oils from leaves and stem (shoot) of peppermint herb.
The steam distillation process is used for extraction of oil.
Some people use peppermint oil as part of their beauty and hair care regimen. Its fragrance is
pleasant and popularly found in shampoos, skin creams, and other products. While peppermint
oil may be known for some skin care benefits, it’s also good for your hair and scalp. It may
help with dryness, itching, or other scalp problems. Peppermint menthol also imparts a
freshened smell and tingly sensation on the skin and scalp. Peppermint oil is used medicines due
to its therapeutic benefits.The healthcare uses of peppermint oil include digestive system
stimulation and for soothing headaches, muscle pain, cold, sinus etc. They are used extensively
in oral care products because of cooling effect and its ability to kill bacteria responsible for bad
breath.

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 PM FME‐ Detailed Project Report of Peppermint Oil Unit

2.2. MARKET POTENTIAL:

The rise in demand for aromatherapy treatments is expected to drive the growth of
global peppermint oil market. The increasing consumer awareness regarding the use of
safe natural and organic products is expected to boost the growth of global peppermint oil
market. The overall demand for essential oil has been on the rise over the past few years
which is attributable to the rising awareness about the health benefits associated with the
product. An ever- increasing global population, rapid urbanisation, a growing
pharmaceutical sector, and rising geriatric population are some of the significant factors
that are influencing a steady shift in consumer preferences.

2.3. RAW MATERIAL DESCRIPTION:

The only raw material that is required for Peppermint Oil unit is Peppermint Shoot (Stem
& Leaves).

3. PROCESS FLOW CHART

The Peppermint Shoots are purchased from farmers and stored temporarily in a shaded area; it acts
as a raw material inventory for distillation unit. The steam and water distillation methods are
generally employed to perform a simple distillation process.

The Peppermint Shoot are boiled with water in a heating vessel and are boiled for 20 to 40 minutes
for optimal extraction, during this period the steam generated carries along with-it Peppermint
Oil as it also gets vaporized from within shoot of plant.

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 PM FME‐ Detailed Project Report of Peppermint Oil Unit

This steam is transferred to condenser via steam pipe, as condenser is circulated with cooling
water continuously utilizing a pump, thus steam transferred to condenser undergoes condensation
completing distillation process, while used cooling water is sent to cooling tower where it
undergoes evaporative cooling to lower its temperature and become reusable for cooling.

The cooled water in cooling tower sump is replenished periodically with make-up water from
another water tank, if required via a make-up water pump to make up for evaporated water in
evaporative cooling.

The contents (Water + Peppermint Oil) obtained from condenser are supplied to separator and then
the liquid is allowed to settle down and as oil and water are immiscible, water settles below while
Peppermint Oil settles above water layer.

A valve is located at bottom of the separator which is used to drain almost all the water from
separator, this water is supplied back to heating vessel for enrichment purpose. The enrichment
process continues for 20 to 40min, after which most of the Peppermint oil is extracted and it’s not
feasible to go after the remainder of portion.

Now water is completely drained from separator and oil is supplied to a filling machine. The filling
machine fills the Peppermint oil in appropriately sized bottles which can range from 10ml to
500ml and machine setting are made accordingly.

Once Peppermint Oil is filled in bottles they are capped manually or by a capping machine; same
goes for Labels, they can either be applied manually or a labelling machine can be used to do so.
Followed by which they are filled in cartons and sent for sale.

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 PM FME‐ Detailed Project Report of Peppermint Oil Unit

Procurement of Pepperminmt
Shoots from Farmers

Peppermint Shoots are

boiled with Water

Steam generated is
transferred to condensor

Water+Peppermint Oil is
obtained from Condensor

Water is drained off

Peppermint oil is collected

Packaging in bottles

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 PM FME‐ Detailed Project Report of Peppermint Oil Unit

4. ECONOMICS OF THE PROJECT

4.1. BASIS & PRESUMPTIONS

1. Production Capacity of Peppermint Oil is 10 Ltr. per day. First year, Capacity has been
taken @ 40%.

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

3. Raw Material stock is for 7 days and Finished goods Closing Stock has been taken for 7 days.

4. Credit period to Sundry Debtors has been given for 20 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 6 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 Peppermint Oil Unit

4.2. CAPACITY, UTILIZATION, PRODUCTION & OUTPUT

COMPUTATION OF PRODUCTION OF PEPPERMINT OIL

Items to be Manufactured
Peppermint Oil

Total working Hours 8

Plant capacity Per Day 10 Ltr
Working days in a month 25 Days
Working days per annum 300
Wastage Considered 5%
Raw material requirement 3000 Ltr
Final Output per annum after wastage 2850 Ltr
Final Product to be packed in 100 ml Bottles
Number of Bottles per annum 28500 100 ml Bottles

Production of Peppermint Oil

Production Capacity Ltr
1st year 40% 11,400
2nd year 45% 12,825
3rd year 50% 14,250
4th year 55% 15,675
5th year 60% 17,100

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 PM FME‐ Detailed Project Report of Peppermint Oil Unit

Raw Material Cost

Year Capacity Rate Amount
Utilisation (per bottle.) (Rs. in lacs)
1st year 40% 250.00 28.50
2nd year 45% 263.00 33.73
3rd year 50% 276.00 39.33
4th year 55% 290.00 45.46
5th year 60% 305.00 52.16

COMPUTATION OF SALE

Particulars 1st year 2nd year 3rd year 4th year 5th year
Op Stock - 266 299 333 366
Production 11,400 12,825 14,250 15,675 17,100
Less : Closing Stock 266 299 333 366 399
Net Sale 11,134 12,792 14,217 15,642 17,067
Sale price per bottle 500.00 525.00 551.00 579.00 608.00
Sales (in Lacs) 55.67 67.16 78.33 90.57 103.77

4.3. PREMISES/INFRASTRUCTURE

The approximate total area required for complete factory setup is 2000-2500 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 Peppermint Oil Unit

4.4. MACHINERY & EQUIPMENTS

Machine Name Description Machine Image.

Heating Vessel Heating Vessel is used to heat the
material at required temperature. They
are used in many industries.

Condenser A condenser is a heat exchanger used to

condense a gaseous substance into a
liquid state through cooling.

Steam Pipe Steam pipe may refer to:

A pipe designed to carry
pressurized steam from a boiler to the
working components, i.e.
the steam engine(s) or turbine(s).
Such piping usually includes valves to
control the routing of the steam, or to
stop the flow altogether.
Separator
The separator, or disc centrifuge, is a
vertically arranged centrifuge. It is used
for separating and clarifying liquids. In
a disk stack separator, solid-liquid
mixtures or liquid-liquid mixtures are

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 PM FME‐ Detailed Project Report of Peppermint Oil Unit

separated by centrifugal force.

Cooling Tower A cooling tower is a specialized heat

exchanger in which air and water are
brought into direct contact with each
other in order to reduce the water's
temperature.

Water Tank It is used to store water.

Bottle Filling This machine is used to fill liquid in

Machine desired quantity and minimizes
wastage.

Material These Equipments are used for

handling and material handling. Other equipments
other like water pumps, weighing machine,
Equipments bucket elevator etc are also used.

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 PM FME‐ Detailed Project Report of Peppermint Oil Unit

Machine Unit Rate Price

Heating Vessel 1 75000 75000

Condenser 1 70000 70000

Separator 1 15000 15000

Cooling Tower 1 40000 40000

Water Tank 1 15000 15000

Bottle Filling Machine 1 180000 180000

Material handling and other equipment’s (Bins, - 250000 250000

trolley, steam pipe, weighing machine, etc.)

Note: Total Machinery cost shall be Rs 6.45 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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 PM FME‐ Detailed Project Report of Peppermint Oil Unit

4.6. TOTAL COST OF PROJECT

COST OF PROJECT
(in Lacs)
PARTICULARS Amount

Land & Building Owned/Rented

Plant & Machinery 6.45
Miscellaneous Assets 2.50
Working capital 4.76
Total 13.71

4.7. MEANS OF FINANCE

MEANS OF FINANCE

PARTICULARS AMOUNT
Own Contribution (min 10%) 1.36
Subsidy @35%(Max. Rs 10 Lac) 3.13
Term Loan @ 55% 4.92
Working Capital (Bank Finance) 4.28
Total 13.71

4.8. TERM LOAN: Term loan of Rs. 4.92 Lakh is required for project cost of
Rs. 13.71 Lakh

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 PM FME‐ Detailed Project Report of Peppermint Oil 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 - 4.92 4.92 - - 4.92

2nd month 4.92 - 4.92 0.05 - 4.92

3rd month 4.92 - 4.92 0.05 - 4.92

4th month 4.92 - 4.92 0.05 4.92

5th month 4.92 - 4.92 0.05 4.92

6th month 4.92 - 4.92 0.05 4.92

7th month 4.92 - 4.92 0.05 0.09 4.83

8th month 4.83 - 4.83 0.04 0.09 4.74

9th month 4.74 - 4.74 0.04 0.09 4.65

10th month 4.65 - 4.65 0.04 0.09 4.56

11th month 4.56 - 4.56 0.04 0.09 4.47

12th month 4.47 - 4.47 0.04 0.09 4.38

0.48 0.55
2nd Opening Balance

1st month 4.38 - 4.38 0.04 0.09 4.28

2nd month 4.28 - 4.28 0.04 0.09 4.19

3rd month 4.19 - 4.19 0.04 0.09 4.10

4th month 4.10 - 4.10 0.04 0.09 4.01

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 PM FME‐ Detailed Project Report of Peppermint Oil Unit

5th month 4.01 - 4.01 0.04 0.09 3.92

6th month 3.92 - 3.92 0.04 0.09 3.83

7th month 3.83 - 3.83 0.04 0.09 3.74

8th month 3.74 - 3.74 0.03 0.09 3.65

9th month 3.65 - 3.65 0.03 0.09 3.56

10th month 3.56 - 3.56 0.03 0.09 3.46

11th month 3.46 - 3.46 0.03 0.09 3.37

12th month 3.37 - 3.37 0.03 0.09 3.28

0.43 1.09
3rd Opening Balance

1st month 3.28 - 3.28 0.03 0.09 3.19

2nd month 3.19 - 3.19 0.03 0.09 3.10

3rd month 3.10 - 3.10 0.03 0.09 3.01

4th month 3.01 - 3.01 0.03 0.09 2.92

5th month 2.92 - 2.92 0.03 0.09 2.83

6th month 2.83 - 2.83 0.03 0.09 2.73

7th month 2.73 - 2.73 0.03 0.09 2.64

8th month 2.64 - 2.64 0.02 0.09 2.55

9th month 2.55 - 2.55 0.02 0.09 2.46

10th month 2.46 - 2.46 0.02 0.09 2.37

11th month 2.37 - 2.37 0.02 0.09 2.28

12th month 2.28 - 2.28 0.02 0.09 2.19

0.31 1.09
4th Opening Balance
1st month 2.19 - 0.02 0.09 2.10

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 PM FME‐ Detailed Project Report of Peppermint Oil Unit

2.19

2nd month 2.10 - 2.10 0.02 0.09 2.01

3rd month 2.01 - 2.01 0.02 0.09 1.91

4th month 1.91 - 1.91 0.02 0.09 1.82

5th month 1.82 - 1.82 0.02 0.09 1.73

6th month 1.73 - 1.73 0.02 0.09 1.64

7th month 1.64 - 1.64 0.02 0.09 1.55

8th month 1.55 - 1.55 0.01 0.09 1.46

9th month 1.46 - 1.46 0.01 0.09 1.37

10th month 1.37 - 1.37 0.01 0.09 1.28

11th month 1.28 - 1.28 0.01 0.09 1.19

12th month 1.19 - 1.19 0.01 0.09 1.09

0.19 1.09
5th Opening Balance

1st month 1.09 - 1.09 0.01 0.09 1.00

2nd month 1.00 - 1.00 0.01 0.09 0.91

3rd month 0.91 - 0.91 0.01 0.09 0.82

4th month 0.82 - 0.82 0.01 0.09 0.73

5th month 0.73 - 0.73 0.01 0.09 0.64

6th month 0.64 - 0.64 0.01 0.09 0.55

7th month 0.55 - 0.55 0.01 0.09 0.46

8th month 0.46 - 0.46 0.00 0.09 0.36

9th month 0.36 - 0.36 0.00 0.09 0.27

10th month 0.27 - 0.27 0.00 0.09 0.18

11th month 0.18 - 0.00 0.09 0.09

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 PM FME‐ Detailed Project Report of Peppermint Oil Unit

0.18

12th month 0.09 - 0.09 0.00 0.09 -

0.07 1.09
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
1.05 1.21 1.39 1.58 1.78
Raw Material
0.67 0.79 0.92 1.06 1.22
Closing Stock 1.71 2.00 2.30 2.64 3.00

COMPUTATION OF WORKING CAPITAL REQUIREMENT

TRADITIONAL METHOD (in Lacs)
Particulars Amount Own Margin Bank Finance
Finished Goods & Raw Material 1.71
Less : Creditors 0.67
Paid stock 1.05 10% 0.10 90% 0.94
Sundry Debtors 3.71 10% 0.37 90% 3.34
4.76 0.48 4.28
MPBF 4.28
WORKING CAPITAL LIMIT DEMAND ( from Bank) 4.28
Working Capital Margin 0.48

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 PM FME‐ Detailed Project Report of Peppermint Oil Unit

4.11. SALARY & WAGES

BREAK UP OF LABOUR CHARGES

Particulars Wages No of Total

Rs. per Month Employees Salary
Plant Operator 15,000 2 30,000
Supervisor 18,000 1 18,000
Skilled (in thousand rupees) 12,000 2 24,000
Unskilled (in thousand rupees) 8,500 2 17,000
Total salary per month 89,000
Total annual labour charges (in lacs) 10.68

BREAK UP OF STAFF SALARY CHARGES

Particulars Salary No of Total

Rs. per Month Employees Salary
Administrative Staff 6,500 1 6,500
Manager 18,000 1 18,000
Accountant 15,000 1 15,000
Total salary per month 39,500
Total annual Staff charges (in lacs) 4.74

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4.12 POWER REQUIREMENT

Utility Charges (per month)

Particulars value Description
Power connection required 6 KWH
consumption per day 48 units
Consumption per month 1,200 units
Rate per Unit 10 Rs.
power Bill per month 12,000 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 6.45 2.50 8.95
Total 6.45 2.50 8.95
Less : Depreciation 0.97 0.25 1.22
WDV at end of Year 5.48 2.25 7.73
Additions During The Year - - -
Total 5.48 2.25 7.73
Less : Depreciation 0.82 0.23 1.05
WDV at end of Year 4.66 2.03 6.69
Additions During The Year - - -
Total 4.66 2.03 6.69
Less : Depreciation 0.70 0.20 0.90
WDV at end of Year 3.96 1.82 5.78
Additions During The Year - - -
Total 3.96 1.82 5.78
Less : Depreciation 0.59 0.18 0.78
WDV at end of Year 3.37 1.64 5.01
Additions During The Year - - -
Total 3.37 1.64 5.01
Less : Depreciation 0.51 0.16 0.67
WDV at end of Year 2.86 1.48 4.34

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4.14. REPAIR & MAINTENANCE: Repair & Maintenance is 2.5% 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 % 40% 45% 50% 55% 60%
SALES
Gross Sale
Peppermint Oil 55.67 67.16 78.33 90.57 103.77

Total 55.67 67.16 78.33 90.57 103.77

COST OF SALES
Raw Material Consumed 28.50 33.73 39.33 45.46 52.16
Electricity Expenses 1.44 1.66 1.90 2.19 2.41
Depreciation 1.22 1.05 0.90 0.78 0.67
Wages & labour 10.68 11.75 12.92 14.22 15.35
Repair & maintenance 1.39 1.68 1.96 2.26 2.59
Packaging 1.67 2.01 2.35 2.72 3.11
Cost of Production 44.90 51.87 59.37 67.62 76.29
Add: Opening Stock /WIP - 1.05 1.21 1.39 1.58
Less: Closing Stock /WIP 1.05 1.21 1.39 1.58 1.78
Cost of Sales 43.85 51.71 59.19 67.43 76.09
GROSS PROFIT 11.82 15.44 19.14 23.14 27.68
21.23% 23.00% 24.44% 25.55% 26.67%
Salary to Staff 4.74 5.78 7.18 7.90 8.85
Interest on Term Loan 0.48 0.43 0.31 0.19 0.07
Interest on working Capital 0.47 0.47 0.47 0.47 0.47
Rent 3.60 3.96 4.36 4.79 5.27
selling & adm exp 1.11 1.48 1.57 2.01 2.33
TOTAL 10.41 12.12 13.88 15.36 16.99
NET PROFIT 1.41 3.33 5.26 7.78 10.69
2.53% 4.95% 6.71% 8.59% 10.30%
Taxation - - 0.18 0.70 1.34
PROFIT (After Tax) 1.41 3.33 5.08 7.08 9.35

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4.16. BREAK EVEN POINT ANALYSIS

BREAK EVEN POINT ANALYSIS

Year I II III IV V

Net Sales & Other Income 55.67 67.16 78.33 90.57 103.77
Less : Op. WIP Goods - 1.05 1.21 1.39 1.58
Add : Cl. WIP Goods 1.05 1.21 1.39 1.58 1.78

Total Sales 56.72 67.32 78.51 90.76 103.97

Variable & Semi Variable Exp.

Raw Material Consumed 28.50 33.73 39.33 45.46 52.16
Electricity Exp/Coal Consumption at 85% 1.22 1.41 1.62 1.86 2.05
Wages & Salary at 60% 9.25 10.52 12.06 13.27 14.52
Selling & adminstrative Expenses 80% 0.89 1.18 1.25 1.61 1.87
Interest on working Capital 0.471139 0.471139 0.471139 0.471139 0.471139
Repair & maintenance 1.39 1.68 1.96 2.26 2.59
Packaging 1.67 2.01 2.35 2.72 3.11
Total Variable & Semi Variable Exp 43.40 51.00 59.04 67.65 76.77
Contribution 13.32 16.32 19.46 23.11 27.20

Fixed & Semi Fixed Expenses

Electricity Exp/Coal Consumption at 15% 0.22 0.25 0.29 0.33 0.36
Wages & Salary at 40% 6.17 7.01 8.04 8.85 9.68
Interest on Term Loan 0.48 0.43 0.31 0.19 0.07
Depreciation 1.22 1.05 0.90 0.78 0.67
Selling & adminstrative Expenses 20% 0.22 0.30 0.31 0.40 0.47
Rent 3.60 3.96 4.36 4.79 5.27
Total Fixed Expenses 11.91 12.99 14.20 15.33 16.51

Capacity Utilization 40% 45% 50% 55% 60%

OPERATING PROFIT 1.41 3.33 5.26 7.78 10.69
BREAK EVEN POINT 36% 36% 36% 36% 36%
BREAK EVEN SALES 50.71 53.59 57.29 60.21 63.12

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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 3.90 4.93 6.01 7.59
Add:- Own Capital 1.36
Add:- Retained Profit 1.41 3.33 5.08 7.08 9.35
Less:- Drawings 2.00 2.30 4.00 5.50 7.50
Subsidy/grant 3.13
Closing Balance 3.90 4.93 6.01 7.59 9.43
Term Loan 4.38 3.28 2.19 1.09 -
Working Capital Limit 4.28 4.28 4.28 4.28 4.28
Sundry Creditors 0.67 0.79 0.92 1.06 1.22
Provisions & Other Liab 0.40 0.50 0.60 0.72 0.86
TOTAL : 13.63 13.78 14.00 14.75 15.80
Assets
Fixed Assets ( Gross) 8.95 8.95 8.95 8.95 8.95
Gross Dep. 1.22 2.26 3.17 3.94 4.61
Net Fixed Assets 7.73 6.69 5.78 5.01 4.34

Current Assets
Sundry Debtors 3.71 4.48 5.22 6.04 6.92
Stock in Hand 1.71 2.00 2.30 2.64 3.00
Cash and Bank 0.47 0.62 0.69 1.06 1.54
TOTAL : 13.63 13.78 14.00 14.75 15.80

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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 1.36
Net Profit 1.41 3.33 5.26 7.78 10.69
Depriciation & Exp. W/off 1.22 1.05 0.90 0.78 0.67
Increase in Cash Credit 4.28 - - - -
Increase In Term Loan 4.92 - - - -
Increase in Creditors 0.67 0.12 0.13 0.14 0.16
Increase in Provisions & Oth lib 0.40 0.10 0.10 0.12 0.14
Sunsidy/grant 3.13
TOTAL : 17.39 4.60 6.39 8.82 11.65
APPLICATION OF FUND
Increase in Fixed Assets 8.95
Increase in Stock 1.71 0.28 0.31 0.34 0.36
Increase in Debtors 3.71 0.77 0.75 0.82 0.88
Repayment of Term Loan 0.55 1.09 1.09 1.09 1.09

Drawings 2.00 2.30 4.00 5.50 7.50

Taxation - - 0.18 0.70 1.34
TOTAL : 16.92 4.44 6.32 8.45 11.17

Opening Cash & Bank Balance - 0.47 0.62 0.69 1.06

Add : Surplus 0.47 0.15 0.07 0.37 0.48
Closing Cash & Bank Balance 0.47 0.62 0.69 1.06 1.54

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 PM FME‐ Detailed Project Report of Peppermint Oil 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 2.63 4.37 5.98 7.85 10.02

Interest on Term Loan 0.48 0.43 0.31 0.19 0.07
Total 3.11 4.80 6.29 8.04 10.08

REPAYMENT
Instalment of Term Loan 0.55 1.09 1.09 1.09 1.09
Interest on Term Loan 0.48 0.43 0.31 0.19 0.07

Total 1.03 1.52 1.40 1.28 1.16

DEBT SERVICE COVERAGE RATIO 3.02 3.16 4.49 6.28 8.70

AVERAGE D.S.C.R. 5.06

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