DETAILED PROJECT REPORT
MUSTARD 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: pm[email protected]
Call: 0130-2281089
PMFME‐DetailedProjectReportofMustardOilUnit
2
TABLE OF CONTENTS
S No.
Topic
Pa
g
e
Number
1. Project Summary 3
2. About the Product 4-5
3. Process Flow Chart 6-7
4. Economics of the Project 8-25
4.1. Basis & Presumptions 8
4.2. Capacity, Utilisation, Production & Output 9-10
4.3. Premises
/
Infrastructure 11
4.4. Machinery & Equipment’s 11-12
4.5. Misc. Fixed Assets 13
4.6. Total Cost of Project 13
4.7. Means of Finance 13
4.8 Term Loan 14
4.9. Term Loan repayment & interest schedule 14-17
4.10. Working Capital Calculations 17-18
4.11. Salaries/Wages 18-19
4.12. Power Requirement 19
4.13. Depreciation Calculation 20
4.14. Repairs & Maintenance 20
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-Se
r
vice Coverage Ratio 25
PMFME‐DetailedProjectReportofMustardOilUnit
3
1. PROJECT SUMMARY
1. Name of the proposed project : Mustard Oil Unit
2. Nature of proposed project : Proprietorship/Company/Partnership
3. Proposed project capacity : 180000
b
ottles
/
annum (40,45,50,55&60%
capacity utilization in 1
st
to 5
th
Year
respectively)
4. Raw material : Mustard See
d
.
5. Major product outputs : Mustard Oil
6. Total project cost : Rs. 17.87 Lakh
Land development, building & Civil
Construction
:
Nil
Machinery an
d
equipment’s : Rs. 7.84 Lakh
Miscellaneous Fixed Assets : Rs. 3.50 Lakh
Working capital : Rs. 6.53 Lakh
8. Means of Finance
Subsidy (max 10lakhs) : Rs. 3.97 Lakh
Promoter’s contribution (min10%) : Rs. 1.78 Lakh
Term loan : Rs. 6.24 Lakh
Working Capital Requirement : Rs. 5.88 La
k
h
9. Profit after Depreciation, Interest & Tax
1
s
t
yea
r
: Rs. 1.66 Lakh
2
n
d
yea
r
: Rs. 3.50 Lakh
3
r
d
yea
r
: Rs. 5.65 Lakh
4
th
yea
r
: Rs. 7.85Lakh
5th yea
r
: Rs. 10.06 Lakh
11. Average DSC
R
: Rs. 4.49
12. Term loan repayment : 5 Years with 6 months grace perio
d
PMFME‐DetailedProjectReportofMustardOilUnit
4
2. ABOUT THE PRODUCT
2.1. PRODUCT INTRODUCTION:
Mustard oil is made from pressing the seeds of a mustard plant to produce spicy oil.
Mustard oil is popular in Eastern cooking, although some American chefs have begun
experimenting with the oil, which has a heat and distinctive flavour to it. Mustard
essential oil has been found to be a powerful antibacterial agent. Source found that
mustard essential oil effectively killed off common and harmful bacteria such as
salmonella, staph, listeria,
and even a certain type of yeast. It can also be used as an antifungal. Mustard oil
contains a compound that could be useful for reducing inflammation. Mustard Oil
uses are:
As cooking Oil
Treat Arthritis
Soothe aches & Pains
Relieves body pain
Benefits of Mustard Oil
1.
Mustard essential oil has been found to be a powerful antibacterial agent. Source found
that mustard essential oil effectively killed off common and harmful bacteria such as
salmonella, staph, listeria, and even a certain type of yeast. It can also be used as an
antifungal.
2.
Mustard oil is rich in monounsaturated fatty acids. Researchers have consistently
found that including monounsaturated fatty acids in the diet can reduce the risk of
PMFME‐DetailedProjectReportofMustardOilUnit
5
cardiovascular disease.
3.
Mustard oil contains a compound that could be useful for reducing inflammation: allyl
isothiocyanate.
2.2. MARKET POTENTIAL:
On the record, production of mustard seeds, a winter crop cultivated in the northern States was
very high as compared to last year. Rajasthan is the major producer contributing up to 47 per
cent of the domestic production, followed by Madhya Pradesh (11.44 per cent), Haryana (12
per cent) and Uttar Pradesh (10.41 per cent).
Consumption of mustard oil has grown about 5 percent per year for the past 40 years and
currently stands at approximately 2.3 million metric tons annually. Although consumption of
mustard oil is typically more prevalent in rural areas, total consumption is usually higher in
urban areas. Most mustard oil (around 90 percent) is used for cooking, and the rest is used for
pickling and consumption as raw oil (sareson-ka-thal, “oil of mustard”) directly on foods.
2.3. RAW MATERIAL DESCRIPTION:
Mustard seeds are required as raw material for the production of Mustard oil. Mustard seeds are
the small round seeds of various mustard plants. Mostly Black seeds are used for the production
of mustard oil.
PMFME‐DetailedProjectReportofMustardOilUnit
6
3. PROCESS FLOW CHART
Seeds Drying
Mustard seed drying is essential to reduce the moisture content from the seed. moisture in
the seed could deteriorate the oil. Generally, seeds are dried in the sun.
Cleaning
The dried mustard seeds are then cleaned by removing the dirt and foreign particles from
the seed in order to improve the oil quality of mustard.
Mustard Seeds Heating
After the cleaning, the mustard seeds are then heated. the quantity of yield is increased by
heating the seeds. The heating also improves the protein supply in the by-product seed
cake that is used for animal feed processing.
Mustard Oil Extraction
Well-prepared mustard seeds are automatically fed into the mustard oil pressing machine
where, depending on the volume to produce approximately 26 -30 % oil, the crushing and
pressing are continued further to extract all the oil from the seed cake.
Mustard Oil filtration
The final step involves filtering the extracted oil to remove impurities from the oil before
the oil is bottled and stored.After filtration, the mustard oil is ready for filling, sealing, and
packaging, now the mustard oil is filled in different sizes of a bottle according to market
demand and sent for the market.
PMFME‐DetailedProjectReportofMustardOilUnit
7
Procurethemustardseeds
fromfarmers
Drying
Cleaning
Heating
OilExtraction
Filtration
Packaging
PMFME‐DetailedProjectReportofMustardOilUnit
8
4. ECONOMICS OF THE PROJECT
4.1. BASIS & PRESUMPTIONS
1. Production Capacity is 150 kg per hr. First year, Capacity has been taken @ 40%.
2. Working shift of 8 hours per day has been considered.
3. Raw Material stock is for 10 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 10 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 12 KW.
10. Increase in sales and raw material costing has been taken @ 5% on a yearly basis.
PMFME‐DetailedProjectReportofMustardOilUnit
9
4.2. CAPACITY, UTILIZATION, PRODUCTION & OUTPUT
Items to be Manufactured
Mustard Oil
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 15%
Raw material requirement 360000 Kg
By Product%
40%
Final Output per annum after wastage & by-
product
162000 Kg
Density of 1 Ltr.
0.9 kg
Final Product to be packed in 1 Ltr Bottle
Number of Bottles per annum 1,80,000 1 Ltr. Bottle
COMPUTATION OF PRODUCTION OF MUSTARD OIL
Production of Mustard Oil
Production Capacity Ltr
1st year 40% 72,000
2nd year 45% 81,000
3rd year 50% 90,000
4th year 55% 99,000
5th year 60% 1,08,000
PMFME‐DetailedProjectReportofMustardOilUnit
10
Raw Material Cost
Year
Capacity
Rate
Amount
Utilisation
(per Kg)
(Rs. in lacs)
1st year 40% 30.00 43.20
2nd year 45% 32.00 51.84
3rd year 50% 34.00 61.20
4th year 55% 36.00 71.28
5th year 60% 38.00 82.08
Particulars 1st year 2nd year 3rd year 4th year 5th year
Op Stock - 1,680 1,890 2,100 2,310
Production 72,000 81,000 90,000 99,000 1,08,000
Less : Closing Stock 1,680 1,890 2,100 2,310 2,520
Net Sale 70,320 80,790 89,790 98,790 1,07,790
Sale price per bottle 90.00 95.00 100.00 105.00 110.00
Sales (in Lacs)
63.29 76.75 89.79 103.73 118.57
COMPUTATION OF SALE
Particulars 1st year 2nd year 3rd year 4th year 5th year
Production 57,600 64,800 72,000 79,200 86,400
Net Sale 57,600 64,800 72,000 79,200 86,400
Sale price per Kg 22.00 23.00 24.00 25.00 26.00
Sales (in Lacs)
12.67 14.90 17.28 19.80 22.46
COMPUTATION OF SALE OF BY-PRODUCT
PMFME‐DetailedProjectReportofMustardOilUnit
11
4.3. PREMISES/INFRASTRUCTURE
The approximate total area required for complete factory setup is 1500-2000 Sq. ft. for
smooth production including storage area. It is expected that the premises will be on rental.
4.4. MACHINERY & EQUIPMENTS
Machine Name Description Machine Image.
Heavy duty Oil
Expeller
Oil Expeller machine which is specially
designed to be used for Edible oil plant.
This machines can extract oil from the
most of seeds/nuts. Moreover it can
crush ground nut, linseeds, mustard
seeds, palm kernels, seeds, castor,
neem, sun flower seeds etc.
Heavy duty round
cooking/feeding
kettle
It is used to cook the mustard seeds
initially prior to oil extraction in order
to enhance oil yield.
Filter press
18"×18" - 18 taps
with Filter cloth,
oil collection tray,
complete
It’s an array of filtration membrane
which are arranged such that when the
oil is forced through this array via a
pump it gets filtered.
PMFME‐DetailedProjectReportofMustardOilUnit
12
with all
accessories oil
pump.
Material
handling and
other
Equipments
These Equipment’s are used for
material handling. Other equipment’s
like water pumps, weighing machine,
pipelines, belts, other spare parts etc
are also used.
Machine Unit Rate Price
Heavy duty Oil Expeller chamber size 30"× 5.5"
crushing capacity Up to
250*kg/hr with oil collection tank
1 260000 260000
Heavy duty round cooking/feeding kettle 1 38000 38000
Filter press 18"×18" - 18 taps with Filter
cloth,oil collection tray, complete
with all accessories oil pump.
1 125000 125000
Essential spare parts worm set cage set filter
cloth
1 30000 30000
Crompton electric motor 3 phase 20HP with
L&T starter
1 65000 65000
Acce. pulley, v belts, pipelines, pipe
fittings,valves,etc.
- 16000 16000
Material handling and other equipment’s (Bins,
trolley, weighing machine, etc.)
- 250000 250000
Note: Total Machinery cost shall be Rs 7.84 lakh including equipment’s but excluding
GST and Transportation Cost.
PMFME‐DetailedProjectReportofMustardOilUnit
13
4.5. MISCELLANEOUS FIXED ASSETS
Water Supply Arrangements
Furniture & Fixtures
Computers & Printers
4.6. TOTAL COST OF PROJECT
4.7. MEANS OF FINANCE
(in Lacs)
PARTICULARS
Amount
Land & Building Owned/Rented
Plant & Machinery 7.84
Miscellaneous Assets 3.50
Working capital 6.53
Total 17.87
COST OF PROJECT
PARTICULARS AMOUNT
Own Contribution (min 10%) 1.78
Subsidy @35%(Max. Rs 10 Lac) 3.97
Term Loan @ 55% 6.24
Working Capital (Bank Finance)
5.88
Total 17.87
MEANS OF FINANCE
PMFME‐DetailedProjectReportofMustardOilUnit
14
4.8. TERM LOAN: Term loan of Rs. 6.24 Lakh is required for project cost of
Rs. 17.87 Lakh
4.9. TERM LOAN REPAYMENT& INTEREST SCHEDULE
REPAYMENT SCHEDULE OF TERM LOAN
Interest 11.00%
Year Particulars Amount Addition Total Interest
Repa
y
ment
Closing
Balance
1st Openin
g
Balance
1st month - 6.24
6.24 - - 6.24
2nd month 6.24 -
6.24 0.06 - 6.24
3rd month 6.24 -
6.24 0.06 - 6.24
4th month 6.24 -
6.24 0.06
6.24
5th month 6.24 -
6.24 0.06
6.24
6th month 6.24 -
6.24 0.06
6.24
7th month 6.24 -
6.24 0.06 0.12 6.12
8th month 6.12 -
6.12 0.06 0.12 6.01
9th month 6.01 -
6.01 0.06 0.12 5.89
10th month 5.89 -
5.89 0.05 0.12 5.78
11th month 5.78 -
5.78 0.05 0.12 5.66
12th month 5.66 -
5.66 0.05 0.12 5.54
PMFME‐DetailedProjectReportofMustardOilUnit
15
0.61 0.69
2nd Openin
g
Balance
1st month 5.54 -
5.54 0.05 0.12 5.43
2nd month 5.43 -
5.43 0.05 0.12 5.31
3rd month 5.31 -
5.31 0.05 0.12 5.20
4th month 5.20 -
5.20 0.05 0.12 5.08
5th month 5.08 -
5.08 0.05 0.12 4.97
6th month 4.97 -
4.97 0.05 0.12 4.85
7th month 4.85 -
4.85 0.04 0.12 4.74
8th month 4.74 -
4.74 0.04 0.12 4.62
9th month 4.62 -
4.62 0.04 0.12 4.50
10th month 4.50 -
4.50 0.04 0.12 4.39
11th month 4.39 -
4.39 0.04 0.12 4.27
12th month 4.27 -
4.27 0.04 0.12 4.16
0.54 1.39
3rd Openin
g
Balance
1st month 4.16 -
4.16 0.04 0.12 4.04
2nd month 4.04 -
4.04 0.04 0.12 3.93
3rd month 3.93 -
3.93 0.04 0.12 3.81
4th month 3.81 -
3.81 0.03 0.12 3.70
5th month 3.70 -
3.70 0.03 0.12 3.58
6th month 3.58 -
3.58 0.03 0.12 3.47
7th month 3.47 -
3.47 0.03 0.12 3.35
8th month 3.35 -
3.35 0.03 0.12 3.23
9th month 3.23 - 0.03 0.12 3.12
PMFME‐DetailedProjectReportofMustardOilUnit
16
3.23
10th month 3.12 -
3.12 0.03 0.12 3.00
11th month 3.00 -
3.00 0.03 0.12 2.89
12th month 2.89 -
2.89 0.03 0.12 2.77
0.39 1.39
4th Openin
g
Balance
1st month 2.77 -
2.77 0.03 0.12 2.66
2nd month 2.66 -
2.66 0.02 0.12 2.54
3rd month 2.54 -
2.54 0.02 0.12 2.43
4th month 2.43 -
2.43 0.02 0.12 2.31
5th month 2.31 -
2.31 0.02 0.12 2.19
6th month 2.19 -
2.19 0.02 0.12 2.08
7th month 2.08 -
2.08 0.02 0.12 1.96
8th month 1.96 -
1.96 0.02 0.12 1.85
9th month 1.85 -
1.85 0.02 0.12 1.73
10th month 1.73 -
1.73 0.02 0.12 1.62
11th month 1.62 -
1.62 0.01 0.12 1.50
12th month 1.50 -
1.50 0.01 0.12 1.39
0.24 1.39
5th Openin
g
Balance
1st month 1.39 -
1.39 0.01 0.12 1.27
2nd month 1.27 -
1.27 0.01 0.12 1.16
3rd month 1.16 -
1.16 0.01 0.12 1.04
4th month 1.04 -
1.04 0.01 0.12 0.92
5th month 0.92 -
0.92 0.01 0.12 0.81
PMFME‐DetailedProjectReportofMustardOilUnit
17
6th month 0.81 -
0.81 0.01 0.12 0.69
7th month 0.69 -
0.69 0.01 0.12 0.58
8th month 0.58 -
0.58 0.01 0.12 0.46
9th month 0.46 -
0.46 0.00 0.12 0.35
10th month 0.35 -
0.35 0.00 0.12 0.23
11th month 0.23 -
0.23 0.00 0.12 0.12
12th month 0.12 -
0.12 0.00 0.12 -
0.08 1.39
DOOR TO DOO
R
60 MONTHS
MORATORIUM
PERIOD 6 MONTHS
REPAYMENT PERIOD 54 MONTHS
4.10. WORKING CAPITAL CALCULATIONS
(in Lacs)
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Finished Goods
1.46 1.72 1.98 2.27 2.57
Raw Material
1.44 1.73 2.04 2.38 2.74
Closing Stock 2.90 3.44 4.02 4.64 5.30
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL
PMFME‐DetailedProjectReportofMustardOilUnit
18
4.11. SALARY & WAGES
TRADITIONAL METHOD
(in Lacs)
Particulars Amount
Finished Goods & Raw Material 2.90
Less : Creditors 1.44
Paid stock 1.46 10% 0.15 90% 1.32
Sundry De btors 5.06 10% 0.51 90% 4.56
6.53 0.65 5.88
MPBF 5.88
5.88
Working Capital Margin
0.65
WORKING CAPITAL LIMIT DEMAND ( from Bank)
Own Margin Bank Finance
COMPUTATION OF WORKING CAPITAL REQUIREMENT
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) 7,500 3 22,500
Total salary per month 94,500
Total annual labour charge s (in lacs) 11.34
PMFME‐DetailedProjectReportofMustardOilUnit
19
4.12 POWER REQUIREMENT
BREAK UP OF STAFF SALARY CHARGES
Particulars Salary No of Total
Rs. per Month Employees Salary
Administrative Staff 8,500 3 25,500
Manager 18,000 1 18,000
Accountant 15,000 1 15,000
Total salary per month 58,500
Total annual Staff charge s (in lacs) 7.02
Utility Charges (per month)
Particulars value De scription
Power connection required 12 KWH
consumption per day 96 units
Consumption per month 2,400 units
Rate per Unit 10 Rs.
power Bill per month 24,000 Rs.
PMFME‐DetailedProjectReportofMustardOilUnit
20
4.13. DEPRECIATION CALCULATION
4.14. REPAIR & MAINTENANCE:
Repair & Maintenance is 2.5% of Gross Sale.
(in Lacs)
De scription Plant & Machine ry Miss. Asse ts TOTAL
Rate of Depreciation
15.00% 10.00%
Opening Balance
- - -
Addition 7.84 3.50 11.34
Total 7.84 3.50 11.34
Less : Depreciation 1.18 0.35 1.53
WDV at end of Year 6.66 3.15 9.81
Additions During The Year - - -
Total 6.66 3.15 9.81
Less : Depreciation 1.00 0.32 1.31
WDV at end of Year 5.66 2.84 8.50
Additions During The Year - - -
Total 5.66 2.84 8.50
Less : Depreciation 0.85 0.28 1.13
WDV at end of Year 4.81 2.55 7.37
Additions During The Year - - -
Total 4.81 2.55 7.37
Less : Depreciation 0.72 0.26 0.98
WDV at end of Year 4.09 2.30 6.39
Additions During The Year - - -
Total 4.09 2.30 6.39
Less : Depreciation 0.61 0.23 0.84
WDV at end of Year 3.48 2.07 5.55
COMPUTATION OF DEPRECIATION
PMFME‐DetailedProjectReportofMustardOilUnit
21
4.15. PROJECTIONS OF PROFITABILITY ANALYSIS
(in Lacs)
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Capacity Utilisation %
40% 45% 50% 55% 60%
SALES
Gross Sale
Mustard Oil 63.29 76.75 89.79 103.73 118.57
Oil Cake (By-Product) 12.67 14.90 17.28 19.80 22.46
Total 75.96 91.65 107.07 123.53 141.03
COST OF SALES
Raw Material Consumed 43.20 51.84 61.20 71.28 82.08
Electricity Expenses 2.88 3.31 3.81 4.38 4.82
Depreciation 1.53 1.31 1.13 0.98 0.84
Wages & labour 11.34 12.47 13.47 14.35 15.28
Repair & maintenance 2.28 2.75 3.21 3.71 4.23
Packaging 1.52 1.83 2.14 2.47 2.82
Cost of Production
62.74 73.52 84.97 97.16 110.07
Add: Ope ning Stock /WIP
- 1.46 1.72 1.98 2.27
Less: Closing Stock /WIP
1.46 1.72 1.98 2.27 2.57
Cost of Sales 61.28 73.27 84.70 96.88 109.77
GROSS PROFIT 14.68 18.38 22.37 26.65 31.26
19.33% 20.06% 20.89% 21.58% 22.17%
Salary to Staff 7.02 8.07 9.28 10.21 11.23
Interest on Term Loan 0.61 0.54 0.39 0.24 0.08
Interest on working Capital 0.65 0.65 0.65 0.65 0.65
Rent 3.60 3.96 4.36 4.79 5.27
selling & adm exp 1.14 1.67 1.71 2.01 2.30
TOTAL 13.02 14.89 16.39 17.89 19.53
NET PROFIT 1.66 3.50 5.98 8.76 11.73
2.19% 3.81% 5.59% 7.09% 8.32%
Taxation - - 0.33 0.91 1.66
PROFIT (After Tax) 1.66 3.50 5.65 7.85 10.06
PROJECTED PROFITABILITY STATEMENT
PMFME‐DetailedProjectReportofMustardOilUnit
22
4.16. BREAK EVEN POINT ANALYSIS
BREAK EVEN POINT ANALYSIS
Ye ar I II III IV V
Net Sales & Other Income
75.96 91.65 107.07 123.53 141.03
Less : Op. WIP Goods - 1.46 1.72 1.98 2.27
Add : Cl. WIP Goods 1.46 1.72 1.98 2.27 2.57
Total Sales 77.42 91.91 107.34 123.81 141.33
Raw Material Consumed 43.20 51.84 61.20 71.28 82.08
Electricity Exp/Coal Consumption at 85% 2.45 2.82 3.24 3.72 4.10
Wages & Salary at 60% 11.02 12.33 13.65 14.74 15.91
Selling & adminstrative Expenses 80% 0.91 1.33 1.37 1.61 1.84
Interest on working Capital 0.646275 0.646275 0.646275 0.646275 0.646275
Repair & maintenance 2.28 2.75 3.21 3.71 4.23
Packaging 1.52 1.83 2.14 2.47 2.82
Total Variable & Semi Variable Exp 62.02 73.55 85.46 98.17 111.62
Contribution 15.40 18.36 21.88 25.65 29.71
Electricity Exp/Coal Consumption at 15% 0.43 0.50 0.57 0.66 0.72
Wages & Salary at 40% 7.34 8.22 9.10 9.82 10.61
Interest on Term Loan 0.61 0.54 0.39 0.24 0.08
Depreciation 1.53 1.31 1.13 0.98 0.84
Selling & adminstrative Expenses 20% 0.23 0.33 0.34 0.40 0.46
Rent 3.60 3.96 4.36 4.79 5.27
Total Fixed Expenses 13.74 14.86 15.89 16.89 17.98
Capacity Utilization 40% 45% 50% 55% 60%
OPERATING PROFIT 1.66 3.50 5.98 8.76 11.73
BREAK EVEN POINT 36% 36% 36% 36% 36%
BREAK EVEN SALES 69.07 74.41 77.98 81.52 85.55
Variable & Semi Variable Exp.
Fixed & Semi Fixed Expenses
PMFME‐DetailedProjectReportofMustardOilUnit
23
4.17. PROJECTED BALANCE SHEET
(in Lacs)
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Liabilities
Capital
opening balance 5.41 6.70 8.36 10.71
Add:- Own Capital
1.78
Add:- Retained Profit 1.66 3.50 5.65 7.85 10.06
Less:- Drawings 2.00 2.20 4.00 5.50 7.50
Subsidy/grant 3.97
Closing Balance 5.41 6.70 8.36 10.71 13.27
Term Loan 5.54 4.16 2.77 1.39 -
Working Capital Limit 5.88 5.88 5.88 5.88 5.88
Sundry Creditors 1.44 1.73 2.04 2.38 2.74
Provisions & Other Liab 0.40 0.50 0.60 0.72 0.86
TOTAL : 18.67 18.96 19.64 21.07 22.75
Assets
Fixed Assets ( Gross)
11.34 11.34 11.34 11.34 11.34
Gross Dep. 1.53 2.84 3.97 4.95 5.79
Net Fixed Assets 9.81 8.50 7.37 6.39 5.55
Current Asse ts
Sundry Debtors 5.06 6.11 7.14 8.24 9.40
Stock in Hand 2.90 3.44 4.02 4.64 5.30
Cash and Bank 0.88 0.91 1.12 1.80 2.50
TOTAL : 18.67 18.96 19.64 21.07 22.75
PROJECTED BALANCE SHEET
PMFME‐DetailedProjectReportofMustardOilUnit
24
4.18. CASH FLOW STATEMENT
(in Lacs)
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
SOURCES OF FUND
Own Margin 1.78
Net Profit 1.66 3.50 5.98 8.76 11.73
Depriciation & Exp. W/off 1.53 1.31 1.13 0.98 0.84
Increase in Cash Credit 5.88 - - - -
Increase In Term Loan 6.24 - - - -
Increase in Creditors 1.44 0.29 0.31 0.34 0.36
Increase in Provisions & Oth lib 0.40 0.10 0.10 0.12 0.14
Sunsidy/grant 3.97
TOTAL : 22.89 5.20 7.53 10.19 13.08
APPLICATION OF FUND
Increase in Fixed Assets 11.34
Increase in Stock 2.90 0.54 0.58 0.62 0.66
Increase in Debtors 5.06 1.05 1.03 1.10 1.17
Repayment of Term Loan 0.69 1.39 1.39 1.39 1.39
Drawings 2.00 2.20 4.00 5.50 7.50
Taxation - - 0.33 0.91 1.66
TOTAL : 22.00 5.17 7.32 9.51 12.38
Opening Cash & Bank Balance - 0.88 0.91 1.12 1.80
Add : Surplus 0.88 0.03 0.21 0.68 0.70
Closing Cash & Bank Balance
0.88 0.91 1.12 1.80 2.50
PROJECTED CASH FLOW STATEMENT
PMFME‐DetailedProjectReportofMustardOilUnit
25
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 3.19 4.81 6.79 8.83 10.91
Interest on Term Loan 0.61 0.54 0.39 0.24 0.08
Total
3.80 5.35 7.17 9.07 10.99
REPAYMENT
Instalment of Term Loan 0.69 1.39 1.39 1.39 1.39
Interest on Term Loan 0.61 0.54 0.39 0.24 0.08
Total 1.31 1.93 1.77 1.62 1.47
DEBT SERVICE COVERAGE RATIO 2.91 2.78 4.05 5.59 7.48
AVERAGE D.S.C.R. 4.49
