DETAILED PROJECT REPORT

KATARNI RICE 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: [Link]

Email: pmfmecell@[Link]

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

TABLE OF CONTENTS

S No. Topic Page

Number
1. Project Summary 3
2. About the Product 4-6
3. Process Flow Chart 7-8
4. Economics of the Project 9-25
4.1. Basis & Presumptions 9
4.2. Capacity, Utilisation, Production & Output 10-11
4.3. Premises/Infrastructure 11
4.4. Machinery & Equipment’s 12-13
4.5. Misc. Fixed Assets 14
4.6. Total Cost of Project 14
4.7. Means of Finance 14
4.8 Term Loan 15
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 Katarni Rice Unit

1. PROJECT SUMMARY

1. Name of the proposed project : Katarni Rice Unit

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

3. Proposed project capacity : 840000 Kg/annum (50,55,60,65&70% capacity

utilization in 1st to 5th Year respectively)

4. Raw material : Paddy grains of Katarni Rice.

5. Major product outputs : Katarni Rice
6. Total project cost : Rs. 21.49 Lakh
 Land development, building & Civil : Nil
Construction

 Machinery and equipment’s : Rs. 10.80 Lakh

 Miscellaneous Fixed Assets : Rs. 3.50 Lakh
 Working capital : Rs. 7.19 Lakh
8. Means of Finance
 Subsidy (max 10lakhs) : Rs. 5.01 Lakh

 Promoter’s contribution (min10%) : Rs. 2.14 Lakh

 Term loan : Rs.7.87 Lakh

 Working Capital Requirement : Rs. 6.47 Lakh
9. Profit after Depreciation, Interest & Tax

 1styear : Rs. 1.81 Lakh

 2ndyear : Rs. 3.87 Lakh
 3rd year : Rs. 5.63 Lakh
 4th year : Rs. 7.87Lakh
 5th year : Rs. 9.78 Lakh
11. Average DSCR : Rs. 3.85
12. Term loan repayment : 5 Years with 6 months grace period

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 PM FME‐ Detailed Project Report of Katarni Rice Unit

2. ABOUT THE PRODUCT

2.1. PRODUCT INTRODUCTION:

Rice is a good source of energy, particularly energy-giving carbohydrates, which the body uses
for brain function, physical activity, bodily functions, and everyday growth and repair. Protein is
the second most abundant component of rice, after carbohydrate. Rice protein is considered one
of the highest quality proteins when compared to that of other grains. Rice is cholesterol-free and
low in fat. The rich carbohydrates and essential vitamins in this ideal commodity, which is also
the staple diet of over 70% of the world's population, are widely consumed.

Bhagalpur Basmati Katarni Rice, also known as Patna rice, is cultivated and processed in a good
manner to ensure superior quality and freshness. Long white grains, enticing aroma, great flavor,
high nutritional value, and low fat make Bhagalpur Basmati Katarni Rice a popular choice. Non-
Basmati rice is used to make rice, pulao, biryani, kheer, upma, and other dishes at home, in
hotels, and in restaurants. Katarni Rice is Bihar's most common, ceremonial, and high-quality
scented rice. It's known for its aromatic flavor, palatability, and ability to make Chura (beaten
rice). Katarni Rice is grown in districts of Bihar's Zone IIIA, which include Munger, Banka, and
South Bhagalpur, as well as the south alluvial Gangetic plane of Munger, Banka, and South
Bhagalpur. Only a few blocks in Bhagalpur District, namely Jagdishpur, Sanhaula, Sahkund, and
Sultanganj; Munger District's Tarapur and Asharganj; and Banka District's Amarpur,
Shambhuganj, Rajaun, Barahat, Chanan, and Katoria, develop the Katarni grain's distinct aroma.

PRODUCT USES

Rice can be cooked by boiling or ground to flour. It is eaten alone and in a wide variety of
soups, side dishes, and main dishes in Asia, the Middle East, and many other cuisines. Other
things that use rice are cereal breakfast, noodles, and alcoholic drinks like Japanese sake.

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 PM FME‐ Detailed Project Report of Katarni Rice Unit

The various uses of rice are:

 Rice is a highly versatile grain that can also be used to prepare several dishes, sweet or
savory, spicy and bland, to suit your taste.
 It can be used to make the popular Khichdi, which is a hot pot dish in which rice, lentils,
spices, and seasonings are thrown into a pot and cooked.
 Rice is used in India in many dishes. Pulao, birianis, curd rice, and other flavored rice,
including coconut rice and lemon rice can be produced. These dishes are an important part of
everyday Indian cuisine.
 Not only in India, but rice is also a grain that is used all over the world. Rice is used in the
everyday cooking of most South Asians. It is used for delightful foods such as Nasi Goreng,
Fried, and Sushi, etc. Also popularly used are rice versions in the Middle East for the
production of pilafs and risotto in Europe.
 Rice can be used to make gluten-free rice flour that people on a gluten-free diet are allowed
to eat. In exchange, rice meal is used for fabulous dishes such as Khichuri and Panki. It is
also used for crispy deep-fried snacks.
 Kheer is a popular Indian dish made of rice and milk with variations throughout India, Paal
Payassam in the south and Payesh in the east. Rice is also used to make various types of
desserts such as Meethe Chawal and rice pudding.

2.2. MARKET POTENTIAL:

Other aromatic short-grain varieties with similar starch content characteristics can be found in
various states across the country. Katarni rice is grown in Bihar, Randhunipagal in West Bengal,
and Bhadshahbhog in West Bengal, and each of these varieties commands a higher price in local
markets. These varieties have a regional preference, and their popularity could not be spread
widely elsewhere. Some of these have more aromas than the traditional basmati. The harmonious

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 PM FME‐ Detailed Project Report of Katarni Rice Unit

combination of different factors determining the appearance, taste, quality of cooked rice texture,
etc., and uniquely/popularizes the particular varieties in the domestic and international market.

In recent years, the organized industry has begun to make a name for it by focusing on Tier 1
and Tier 2 cities where urbanization has increased. The report includes various segments of
the Indian rice market, such as basmati and packed rice, which is further divided into types.
Complete trade analysis is included, as well as current market trends. This will aid in gaining
a market share of the competition's best-performing companies. India's rice production and
consumption have increased over the years, and the organized rice industry has benefited from
the involvement of many top companies. Along with production, India is the world's leading
rice exporter, accounting for nearly 25% of global rice exports. Because India is the world's
largest producer of basmati rice, basmati rice dominates India's rice exports. Iran and Saudi
Arabia are India's largest basmati rice importers, accounting for the majority of the country's
overall basmati rice export value. In the last five years, the Indian domestic rice market has
grown at a CAGR of over 4%. Non-basmati rice holds a larger share of the Indian rice market
than basmati rice because basmati rice production is limited to only a few states and is
considered premium rice. Increased urbanization is playing an important role in developing
India's packed rice market, which is shifting from an unorganized to an organized market that
is growing at a CAGR of nearly 12% consumer awareness. Basmati rice dominates the packed
rice market in India, as do new healthy rice segments such as brown rice and organic rice,
whose demand has risen in recent years.

2.3. RAW MATERIAL DESCRIPTION:

Katarni rice varieties are the only raw material required for the milling plant. It is easily
available in the market.

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3. PROCESS FLOW CHART

Paddy Cleaning

In order to ensure the correct functioning of the rice milling machinery, paddy cleaning is
necessary for the removal of unwanted foreign matter. Stones and other heavy impurities, being
heavier, foreign matters are separated in this process.

Paddy De-husking

A streamlined paddy flow is sent into a pair of rubber rolls, rotating at different speeds, in
opposite directions. The husk is actually extracted with friction to allow paddy grain to move
between two abrasive surfaces at different speeds. It is easy to cut the husk. The husk is
removed after dehusking and transported outside the mill to a storage dump. Husk represents
20% of the paddy weight and an effective husker can take away 90% of the husk in one pass.

Polishing

The method involves rubbing the rice surface with another rice surface with mystified air. The
Mystified air act as a lubricant between the two surfaces. This process is used to make a
superfluous silky finish on the rice surface.

Rice Grading

Broken rice is removed from whole rice. After polishing, white rice is separated into head rice,
large and small broken rice, and “brewers”.

Packaging

Rice is now packed in the appropriate package which must be accurately weighed and labeled.

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 PM FME‐ Detailed Project Report of Katarni Rice Unit

Paddy Grain

Cleaning

Paddy Milling (De‐husking)

Polishing

Grading

Packaging

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4. ECONOMICS OF THE PROJECT

4.1. BASIS & PRESUMPTIONS

1. Production Capacity of Katarni Rice is 500 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 7 days and Finished goods Closing Stock has been taken for 7 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 14 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 Katarni Rice Unit

4.2. CAPACITY, UTILIZATION, PRODUCTION & OUTPUT

COMPUTATION OF PRODUCTION OF KATARNI RICE

Items to be Manufactured
Katarni Rice

Machine capacity Per hour 500 Kg

Total working Hours 8
Machine capacity Per Day 4,000 Kg
Working days in a month 25 Days
Working days per annum 300
Wastage Considered 30%
Raw material requirement 1200000 Kg
Final Output per annum after wastage 840000 Kg
Final Product to be packed in 1 kg Packet
Number of Packets per annum 840000 1 Kg Packet

Production of Katarni Rice

Production Capacity KG
1st year 50% 4,20,000
2nd year 55% 4,62,000
3rd year 60% 5,04,000
4th year 65% 5,46,000
5th year 70% 5,88,000

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 PM FME‐ Detailed Project Report of Katarni Rice Unit

Raw Material Cost

Year Capacity Rate Amount
Utilisation (per Kg) (Rs. in lacs)
1st year 50% 16.00 96.00

2nd year 55% 17.00 112.20

3rd year 60% 18.00 129.60
4th year 65% 19.00 148.20
5th year 70% 20.00 168.00

COMPUTATION OF SALE

Particulars 1st year 2nd year 3rd year 4th year 5th year
Op Stock - 9,800 10,780 11,760 12,740

Production 4,20,000 4,62,000 5,04,000 5,46,000 5,88,000

Less : Closing Stock 9,800 10,780 11,760 12,740 13,720
Net Sale 4,10,200 4,61,020 5,03,020 5,45,020 5,87,020
Sale price per packet 32.00 34.00 36.00 38.00 40.00
Sales (in Lacs) 131.26 156.75 181.09 207.11 234.81

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 Katarni Rice Unit

4.4. MACHINERY & EQUIPMENTS

Machine Name Description Machine Image.

Paddy Pre A Paddy Cleaner is an effective
Cleaning Machine machine designed to clean unwanted
paddy materials.

Compact Milling A Rice milling machine is a machine

Machine used for removing the outer husks, Rice
polishing, and grading of rice grains.

Packaging This automatic rice packing machine is

machine mainly used for the automatic
quantitative packaging of rice.

Unloading Bins These are large bins designed for

unloading of grains & similar product;
they are equipped with large rod mess
to prevent big impurities from entering
system.
Silos This Equipment are class of storage
Equipment which are specifically
designed for dry grain raw material of
small granule composition. Usually
used to store grains but can also be used

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 PM FME‐ Detailed Project Report of Katarni Rice Unit

to store cement & aggregate.

Bucket Elevator A bucket lift is also a grain leg and is a

device for vertical transport, often grain
materials.

Material These Equipments are used for

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

Machine Unit Rate Price

Paddy Pre Cleaning Machine 1 150000 150000
Compact Milling Machine 1 200000 200000
Packaging machine 1 380000 380000
Material handling and other equipment’s (Bins, - 350000 350000
trolley, conveyor, silos, weighing machine,
bucket elevator etc.)

Note: Total Machinery cost shall be Rs 10.80 lakh including equipment’s but excluding
GST and Transportation Cost.

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4.5. MISCELLANEOUS FIXED ASSETS

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

4.6. TOTAL COST OF PROJECT

COST OF PROJECT
(in Lacs)

PARTICULARS Amount

Land & Building Owned/Rented

Plant & Machinery 10.80
Miscellaneous Assets 3.50
Working capital 7.19
Total 21.49

4.7. MEANS OF FINANCE

MEANS OF FINANCE

PARTICULARS AMOUNT
Own Contribution (min 10%) 2.14
Subsidy @35%(Max. Rs 10 Lac) 5.01
Term Loan @ 55% 7.87
Working Capital (Bank Finance) 6.47
Total 21.49

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4.8. TERM LOAN: Term loan of Rs. 7.87 Lakh is required for project cost of
Rs. 21.49 Lakh

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 - 7.87 7.87 - - 7.87

2nd month 7.87 - 7.87 0.07 - 7.87

3rd month 7.87 - 7.87 0.07 - 7.87

4th month 7.87 - 7.87 0.07 7.87

5th month 7.87 - 7.87 0.07 7.87

6th month 7.87 - 7.87 0.07 7.87

7th month 7.87 - 7.87 0.07 0.15 7.72

8th month 7.72 - 7.72 0.07 0.15 7.57

9th month 7.57 - 7.57 0.07 0.15 7.43

10th month 7.43 - 7.43 0.07 0.15 7.28

11th month 7.28 - 7.28 0.07 0.15 7.14

12th month 7.14 - 7.14 0.07 0.15 6.99

0.77 0.87
2nd Opening Balance

1st month 6.99 - 6.99 0.06 0.15 6.85

2nd month 6.85 - 6.85 0.06 0.15 6.70

3rd month 6.70 - 6.70 0.06 0.15 6.55

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4th month 6.55 - 6.55 0.06 0.15 6.41

5th month 6.41 - 6.41 0.06 0.15 6.26

6th month 6.26 - 6.26 0.06 0.15 6.12

7th month 6.12 - 6.12 0.06 0.15 5.97

8th month 5.97 - 5.97 0.05 0.15 5.83

9th month 5.83 - 5.83 0.05 0.15 5.68

10th month 5.68 - 5.68 0.05 0.15 5.53

11th month 5.53 - 5.53 0.05 0.15 5.39

12th month 5.39 - 5.39 0.05 0.15 5.24

0.68 1.75
3rd Opening Balance

1st month 5.24 - 5.24 0.05 0.15 5.10

2nd month 5.10 - 5.10 0.05 0.15 4.95

3rd month 4.95 - 4.95 0.05 0.15 4.81

4th month 4.81 - 4.81 0.04 0.15 4.66

5th month 4.66 - 4.66 0.04 0.15 4.52

6th month 4.52 - 4.52 0.04 0.15 4.37

7th month 4.37 - 4.37 0.04 0.15 4.22

8th month 4.22 - 4.22 0.04 0.15 4.08

9th month 4.08 - 4.08 0.04 0.15 3.93

10th month 3.93 - 3.93 0.04 0.15 3.79

11th month 3.79 - 3.79 0.03 0.15 3.64

12th month 3.64 - 3.64 0.03 0.15 3.50

0.49 1.75

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4th Opening Balance

1st month 3.50 - 3.50 0.03 0.15 3.35

2nd month 3.35 - 3.35 0.03 0.15 3.20

3rd month 3.20 - 3.20 0.03 0.15 3.06

4th month 3.06 - 3.06 0.03 0.15 2.91

5th month 2.91 - 2.91 0.03 0.15 2.77

6th month 2.77 - 2.77 0.03 0.15 2.62

7th month 2.62 - 2.62 0.02 0.15 2.48

8th month 2.48 - 2.48 0.02 0.15 2.33

9th month 2.33 - 2.33 0.02 0.15 2.18

10th month 2.18 - 2.18 0.02 0.15 2.04

11th month 2.04 - 2.04 0.02 0.15 1.89

12th month 1.89 - 1.89 0.02 0.15 1.75

0.30 1.75
5th Opening Balance

1st month 1.75 - 1.75 0.02 0.15 1.60

2nd month 1.60 - 1.60 0.01 0.15 1.46

3rd month 1.46 - 1.46 0.01 0.15 1.31

4th month 1.31 - 1.31 0.01 0.15 1.17

5th month 1.17 - 1.17 0.01 0.15 1.02

6th month 1.02 - 1.02 0.01 0.15 0.87

7th month 0.87 - 0.87 0.01 0.15 0.73

8th month 0.73 - 0.73 0.01 0.15 0.58

9th month 0.58 - 0.58 0.01 0.15 0.44

10th month 0.44 - 0.00 0.15 0.29

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0.44

11th month 0.29 - 0.29 0.00 0.15 0.15

12th month 0.15 - 0.15 0.00 0.15 -

0.10 1.75
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 3.27 3.74 4.25 4.78

Raw Material
2.24 2.62 3.02 3.46 3.92
Closing Stock 5.06 5.88 6.76 7.71 8.70

COMPUTATION OF WORKING CAPITAL REQUIREMENT

TRADITIONAL METHOD (in Lacs)
Particulars Amount Own Margin Bank Finance
Finished Goods & Raw Material 5.06
Less : Creditors 2.24
Paid stock 2.82 10% 0.28 90% 2.54
Sundry Debtors 4.38 10% 0.44 90% 3.94
7.19 0.72 6.47

MPBF 6.47
WORKING CAPITAL LIMIT DEMAND ( from Bank) 6.47
Working Capital Margin 0.72

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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 15,000 3 45,000

Supervisor 18,000 1 18,000
Skilled (in thousand rupees) 12,000 2 24,000
Unskilled (in thousand rupees) 8,500 3 25,500
Total salary per month 1,12,500
Total annual labour charges (in lacs) 13.50

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 14 KWH
consumption per day 112 units

Consumption per month 2,800 units

Rate per Unit 10 Rs.
power Bill per month 28,000 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 10.80 3.50 14.30

Total 10.80 3.50 14.30
Less : Depreciation 1.62 0.35 1.97
WDV at end of Year 9.18 3.15 12.33
Additions During The Year - - -
Total 9.18 3.15 12.33
Less : Depreciation 1.38 0.32 1.69
WDV at end of Year 7.80 2.84 10.64
Additions During The Year - - -
Total 7.80 2.84 10.64
Less : Depreciation 1.17 0.28 1.45
WDV at end of Year 6.63 2.55 9.18
Additions During The Year - - -
Total 6.63 2.55 9.18
Less : Depreciation 0.99 0.26 1.25
WDV at end of Year 5.64 2.30 7.93
Additions During The Year - - -
Total 5.64 2.30 7.93
Less : Depreciation 0.85 0.23 1.08
WDV at end of Year 4.79 2.07 6.86

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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 % 50% 55% 60% 65% 70%

SALES
Gross Sale
Katarni Rice 131.26 156.75 181.09 207.11 234.81

Total 131.26 156.75 181.09 207.11 234.81

COST OF SALES
Raw Material Consumed 96.00 112.20 129.60 148.20 168.00
Electricity Expenses 3.36 3.86 4.44 5.11 5.62
Depreciation 1.97 1.69 1.45 1.25 1.08
Wages & labour 13.50 15.12 16.63 18.30 19.76
Repair & maintenance 3.28 3.92 4.53 5.18 5.87
Packaging 2.63 3.13 3.62 4.14 4.70
Cost of Production 120.74 139.93 160.28 182.18 205.02
Add: Opening Stock /WIP - 2.82 3.27 3.74 4.25
Less: Closing Stock /WIP 2.82 3.27 3.74 4.25 4.78
Cost of Sales 117.92 139.48 159.80 181.66 204.49
GROSS PROFIT 13.34 17.27 21.28 25.44 30.32
10.17% 11.01% 11.75% 12.29% 12.91%
Salary to Staff 4.74 5.69 7.05 7.76 8.69
Interest on Term Loan 0.77 0.68 0.49 0.30 0.10
Interest on working Capital 0.71 0.71 0.71 0.71 0.71
Rent 3.60 3.96 4.36 4.79 5.27
selling & adm exp 1.71 2.35 2.72 3.11 4.23
TOTAL 11.53 13.39 15.33 16.67 19.00
NET PROFIT 1.81 3.87 5.96 8.78 11.32
1.38% 2.47% 3.29% 4.24% 4.82%
Taxation - - 0.32 0.91 1.54
PROFIT (After Tax) 1.81 3.87 5.63 7.87 9.78

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4.16. BREAK EVEN POINT ANALYSIS

BREAK EVEN POINT ANALYSIS

Year I II III IV V

Net Sales & Other Income 131.26 156.75 181.09 207.11 234.81
Less : Op. WIP Goods - 2.82 3.27 3.74 4.25
Add : Cl. WIP Goods 2.82 3.27 3.74 4.25 4.78

Total Sales 134.08 157.19 181.56 207.62 235.34

Variable & Semi Variable Exp.

Raw Material Consumed 96.00 112.20 129.60 148.20 168.00
Electricity Exp/Coal Consumption at 85% 2.86 3.28 3.78 4.34 4.78
Wages & Salary at 60% 10.94 12.48 14.21 15.63 17.07
Selling & adminstrative Expenses 80% 1.37 1.88 2.17 2.49 3.38
Interest on working Capital 0.712073 0.712073 0.712073 0.712073 0.712073
Repair & maintenance 3.28 3.92 4.53 5.18 5.87
Packaging 2.63 3.13 3.62 4.14 4.70
Total Variable & Semi Variable Exp 117.78 137.62 158.62 180.69 204.51
Contribution 16.30 19.58 22.94 26.93 30.83

Fixed & Semi Fixed Expenses

Electricity Exp/Coal Consumption at 15% 0.50 0.58 0.67 0.77 0.84
Wages & Salary at 40% 7.30 8.32 9.47 10.42 11.38
Interest on Term Loan 0.77 0.68 0.49 0.30 0.10
Depreciation 1.97 1.69 1.45 1.25 1.08
Selling & adminstrative Expenses 20% 0.34 0.47 0.54 0.62 0.85
Rent 3.60 3.96 4.36 4.79 5.27
Total Fixed Expenses 14.48 15.71 16.98 18.15 19.52

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

OPERATING PROFIT 1.81 3.87 5.96 8.78 11.32
BREAK EVEN POINT 44% 44% 44% 44% 44%
BREAK EVEN SALES 119.17 126.10 134.41 139.93 148.97

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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 6.96 8.33 9.96 11.83
Add:- Own Capital 2.14
Add:- Retained Profit 1.81 3.87 5.63 7.87 9.78
Less:- Drawings 2.00 2.50 4.00 6.00 7.50
Subsidy/grant 5.01
Closing Balance 6.96 8.33 9.96 11.83 14.11
Term Loan 6.99 5.24 3.50 1.75 -
Working Capital Limit 6.47 6.47 6.47 6.47 6.47
Sundry Creditors 2.24 2.62 3.02 3.46 3.92
Provisions & Other Liab 0.40 0.50 0.60 0.72 0.86
TOTAL : 23.06 23.16 23.56 24.23 25.37
Assets
Fixed Assets ( Gross) 14.30 14.30 14.30 14.30 14.30
Gross Dep. 1.97 3.66 5.12 6.37 7.44
Net Fixed Assets 12.33 10.64 9.18 7.93 6.86

Current Assets
Sundry Debtors 4.38 5.22 6.04 6.90 7.83
Stock in Hand 5.06 5.88 6.76 7.71 8.70
Cash and Bank 1.30 1.42 1.57 1.68 1.98
TOTAL : 23.06 23.16 23.56 24.23 25.37

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 PM FME‐ Detailed Project Report of Katarni Rice Unit

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 2.14

Net Profit 1.81 3.87 5.96 8.78 11.32
Depriciation & Exp. W/off 1.97 1.69 1.45 1.25 1.08
Increase in Cash Credit 6.47 - - - -
Increase In Term Loan 7.87 - - - -
Increase in Creditors 2.24 0.38 0.41 0.43 0.46
Increase in Provisions & Oth lib 0.40 0.10 0.10 0.12 0.14
Sunsidy/grant 5.01
TOTAL : 27.91 6.04 7.92 10.58 13.00
APPLICATION OF FUND
Increase in Fixed Assets 14.30
Increase in Stock 5.06 0.83 0.88 0.94 1.00
Increase in Debtors 4.38 0.85 0.81 0.87 0.92
Repayment of Term Loan 0.87 1.75 1.75 1.75 1.75

Drawings 2.00 2.50 4.00 6.00 7.50

Taxation - - 0.32 0.91 1.54
TOTAL : 26.61 5.92 7.76 10.47 12.70

Opening Cash & Bank Balance - 1.30 1.42 1.57 1.68

Add : Surplus 1.30 0.12 0.15 0.11 0.30
Closing Cash & Bank Balance 1.30 1.42 1.57 1.68 1.98

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 PM FME‐ Detailed Project Report of Katarni Rice 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 3.78 5.56 7.09 9.12 10.86

Interest on Term Loan 0.77 0.68 0.49 0.30 0.10
Total 4.56 6.25 7.58 9.41 10.96

REPAYMENT
Instalment of Term Loan 0.87 1.75 1.75 1.75 1.75
Interest on Term Loan 0.77 0.68 0.49 0.30 0.10

Total 1.65 2.43 2.24 2.04 1.85

DEBT SERVICE COVERAGE RATIO 2.77 2.57 3.39 4.61 5.92

AVERAGE D.S.C.R. 3.85

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