PROJECT REPORT
ON
DAIRY FARM
1
Name of the Unit
Govardhan Dairy Farm
2
Line of Activity
Dairy Farm
3
Products
Milk
4
New/Expansion/Modernization
New
5
Constitution
Proprietorship
6
Name of the Proprietor
7
Registered Address
4-30, Komeruapudi, Sattenpalli
Guntur, A P - 522438
8
Site Location
4-30, Komeruapudi, Sattenpalli
Guntur, A P - 522438
0
9
Cost of the Project
10,00,000.00
10
Feciliites Required
Term Loan
11
Promoters Contribution
2,00,000.00
12
Loan From Bank
8,00,000.00
13
Moratorium
6 months
14
Power
NA
15
BEP
13.16%
16
Average DSCR
13.24
PROJECT AT A GLANCE
Govardhan Dairy Farm
Total Project Cost
S.No
Particulars
Amount
1
Cost of Buffellows
0
5,60,000
Type - Murrah
Nubmber of Bufellows- 7
Each Bufellow @ 80,000 /-
2
Shed Cost
2,40,000
Area Required 20*60sft/ bufellow
Total sft required for 7 bufellow - 1200 sft
Cost of Const/sft @ 200
3
Chaff Cutter 3HP
15,000
4
Milking Machine
20,000
5
Bore Well
65,000
6
Motor 3HP
20,000
7
Electrical Wiring
30,000
8
Field Laese
-
9
Misc
50,000
Total Cost
10,00,000
Means of Finance :Term Loan
S.NO
Particulars
Amount
%
1
Promoters Conribution
2,00,000
20%
2
Bank Finance
8,00,000
80%
Total 10,00,000 100%
S.NO
Particulars
Amount
%
Working Capital
Total Working Capital Required
43,59,200
3,58,290
Govardhan Dairy Farm
Yield Statement - Milk
Particulars
Year 1
Year 2
Year 3
Year 4
Year 5
1.Total Installed Capacity in Liters/ Bufellow
70
70
80
80
90
2.No of Bufellows
7
7
8
8
9
3.No of Production days in year
275
275
275
275
275
4.Total Installed Capacity
134750
134750
176000
176000
222750
5.Capacity Utilization
80.00%
80.00%
80.00%
80.00%
80.00%
5.Actual Capacity in Liters
107800
107800
140800
140800
178200
6.Selling Price per Liter
60
60
60
65
65
7.Total Revenue /Year
64,68,000
64,68,000
84,48,000
91,52,000
1,15,83,000
Cost
Particulars
Year 1
Year 2
Year 3
Year 4
Year 5
a) Feed Cost
1.Feed Cost /Day/Bufellow
1600
1600
1800
1800
2000
2.Number of Bufellows
7
7
8
8
9
3.No of Days in a year
365
365
365
365
365
Total Feed Cost
40,88,000
40,88,000
52,56,000
52,56,000
65,70,000
Cost
Particulars
Year 1
Year 2
Year 3
Year 4
Year 5
-
-
-
-
a)Labour Cost
1.Manpower Required
2
2
2
2
2
2.Salary/Month
10,000
10,000
10,000
10,000
10,000
Total Salary
2,40,000
2,40,000
2,40,000
2,40,000
2,40,000
b) Vetarnary Aid
Medicines/ Year
10000
11000
12100
13310
14641
c)Insurance @2% on Animal Cost
11,200
11,200
12,200
12,200
13,200
d) Electrical Cost/ Year
10,000
11,000
12,100
13,310
14,641
Govardhan Dairy Farm
Projected Profitabilty Statement
Projected
Projected
Projected
Projected
Projected
Particulars
Year 1
Year 2
Year 3
Year 4
Year 5
Income
Sales Revenue
64,68,000
64,68,000
84,48,000
91,52,000
1,15,83,000
Other Income
-
-
-
-
-
Total
64,68,000
64,68,000
84,48,000
91,52,000
1,15,83,000
Expenditure
Feed Cost
40,88,000
40,88,000
52,56,000
52,56,000
65,70,000
-
Salaries & Wages
2,40,000
2,40,000
2,40,000
2,40,000
2,40,000
-
Medicine Cost
10,000
11,000
12,100
13,310
14,641
Electricity Charges
10,000
11,000
12,100
13,310
14,641
Misc Exp
-
-
-
-
-
Finance Charges
1,06,000
56,667
40,667
24,667
8,667
Depriciation
1,00,000
1,00,000
1,00,000
1,00,000
1,00,000
Profit Before Tax
19,14,000
19,61,333
27,87,133
35,04,713
46,35,051
Provision for Tax
-
-
10,51,414
13,90,515
Profit After Tax
19,14,000
19,61,333
27,87,133
24,53,299
32,44,536
Net Profit Ratio
29.59%
30.32%
32.99%
26.81%
28.01%
BALANCE SHEET
Projected
Projected
Projected
Projected
Projected
Particulars
Year 1
Year 2
Year 3
Year 4
Year 5
Liabilities
Proprietors Capital
Capital 2,00,000 21,14,000 40,75,333 68,62,467 93,15,766
Reserves & Surplus 19,14,000 19,61,333 27,87,133 24,53,299 32,44,536
Less: Drawings - - - - -
Total 21,14,000 40,75,333 68,62,467 93,15,766 1,25,60,302
Secured Loans
Term Loan 6,40,000 4,80,000 3,20,000 1,60,000 -
Unsecured Loans - - - - -
Current Liabilities
Advances From Customers - - - - -
Sundry Creditors - - - - -
Other Provisions - - - - -
Total
27,54,000
45,55,333
71,82,467
94,75,766
1,25,60,302
Assets
Fixed Assets 9,00,000 8,00,000 7,00,000 6,00,000 5,00,000
Non Current Assets - - - - -
Current Assets
Sundry Debtors 1,25,767 1,25,767 1,64,267 1,77,956 2,25,225
Loans & Advances - - - - -
Cash & Bank Balances 17,28,233 36,29,567 63,18,200 86,97,810 1,18,35,077
Total
27,54,000
45,55,333
71,82,467
94,75,766
1,25,60,302
Govardhan Dairy Farm
Term Loan 8,00,000.00
Rate 10.00%
Intallments Monthly 60
Insatallament Amount 13,333.33
Installment No Opening Balance Installment Amount Interest Closing Balance Yearly Interest
- 8,00,000.00 - 6,667 8,00,000
- 8,00,000.00 - 6,667 8,00,000
- 8,00,000.00 - 6,667 8,00,000
- 8,00,000.00 - 6,667 8,00,000
-
8,00,000.00
-
6,667
8,00,000
33,333
1 8,00,000.00 13,333.33 6,667 7,86,667
2 7,86,666.67 13,333.33 6,556 7,73,333
3 7,73,333.33 13,333.33 6,444 7,60,000
4 7,60,000.00 13,333.33 6,333 7,46,667
5 7,46,666.67 13,333.33 6,222 7,33,333
6 7,33,333.33 13,333.33 6,111 7,20,000
7 7,20,000.00 13,333.33 6,000 7,06,667
8 7,06,666.67 13,333.33 5,889 6,93,333
9 6,93,333.33 13,333.33 5,778 6,80,000
10 6,80,000.00 13,333.33 5,667 6,66,667
11 6,66,666.67 13,333.33 5,556 6,53,333
12
6,53,333.33
13,333.33
5,444
6,40,000
72,667
13 6,40,000.00 13,333.33 5,333 6,26,667
14 6,26,666.67 13,333.33 5,222 6,13,333
15 6,13,333.33 13,333.33 5,111 6,00,000
16 6,00,000.00 13,333.33 5,000 5,86,667
17 5,86,666.67 13,333.33 4,889 5,73,333
18 5,73,333.33 13,333.33 4,778 5,60,000
19 5,60,000.00 13,333.33 4,667 5,46,667
20 5,46,666.67 13,333.33 4,556 5,33,333
21 5,33,333.33 13,333.33 4,444 5,20,000
22 5,20,000.00 13,333.33 4,333 5,06,667
23 5,06,666.67 13,333.33 4,222 4,93,333
24
4,93,333.33
13,333.33
4,111
4,80,000
56,667
25 4,80,000.00 13,333.33 4,000 4,66,667
26 4,66,666.67 13,333.33 3,889 4,53,333
27 4,53,333.33 13,333.33 3,778 4,40,000
28 4,40,000.00 13,333.33 3,667 4,26,667
29 4,26,666.67 13,333.33 3,556 4,13,333
30 4,13,333.33 13,333.33 3,444 4,00,000
31 4,00,000.00 13,333.33 3,333 3,86,667
32 3,86,666.67 13,333.33 3,222 3,73,333
33 3,73,333.33 13,333.33 3,111 3,60,000
34 3,60,000.00 13,333.33 3,000 3,46,667
35 3,46,666.67 13,333.33 2,889 3,33,333
36
3,33,333.33
13,333.33
2,778
3,20,000
40,667
37 3,20,000.00 13,333.33 2,667 3,06,667
38 3,06,666.67 13,333.33 2,556 2,93,333
39 2,93,333.33 13,333.33 2,444 2,80,000
40 2,80,000.00 13,333.33 2,333 2,66,667
41 2,66,666.67 13,333.33 2,222 2,53,333
42 2,53,333.33 13,333.33 2,111 2,40,000
43 2,40,000.00 13,333.33 2,000 2,26,667
44 2,26,666.67 13,333.33 1,889 2,13,333
45 2,13,333.33 13,333.33 1,778 2,00,000
46 2,00,000.00 13,333.33 1,667 1,86,667
47 1,86,666.67 13,333.33 1,556 1,73,333
48
1,73,333.33
13,333.33
1,444
1,60,000
24,667
49 1,60,000.00 13,333.33 1,333 1,46,667
50 1,46,666.67 13,333.33 1,222 1,33,333
51 1,33,333.33 13,333.33 1,111 1,20,000
52 1,20,000.00 13,333.33 1,000 1,06,667
53 1,06,666.67 13,333.33 889 93,333
54 93,333.33 13,333.33 778 80,000
Installment No Opening Balance Installment Amount Interest Closing Balance Yearly Interest
55 80,000.00 13,333.33 667 66,667
56 66,666.67 13,333.33 556 53,333
57 53,333.33 13,333.33 444 40,000
58 40,000.00 13,333.33 333 26,667
59 26,666.67 13,333.33 222 13,333
60
13,333.33
13,333.33
111
-0
8,667
Debt Service Coverage Ratio
Projected
Projected
Projected
Projected
Projected
Particulars
Year 1
Year 2
Year 3
Year 4
Year 5
Profit After tax 19,14,000 19,61,333 27,87,133 24,53,299 32,44,536
Depriciation 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000
Interest on term Loan 1,06,000 56,667 40,667 24,667 8,667
Total
21,20,000
21,18,000
29,27,800
25,77,966
33,53,203
Payment Obligation
TL Installments 1,60,000 1,60,000 1,60,000 1,60,000 1,60,000
Interest 1,06,000 56,667 40,667 24,667 8,667
Total
2,66,000
2,16,667
2,00,667
1,84,667
1,68,667
DSCR 7.97 9.78 14.59 13.96 19.88
Avg DSCR 13.24
Break Even Point
Projected
Projected
Projected
Projected
Projected
Particulars
Year 1
Year 2
Year 3
Year 4
Year 5
Revenue
64,68,000
64,68,000
84,48,000
91,52,000
1,15,83,000
Variable Costs
Feed Cost
40,88,000
40,88,000
52,56,000
52,56,000
65,70,000
Medicine Cost
10,000
11,000
12,100
13,310
14,641
Total
40,98,000
40,99,000
52,68,100
52,69,310
65,84,641
Contribution
23,70,000
23,69,000
31,79,900
38,82,690
49,98,359
Fixed Costs
Salaries
2,40,000
2,40,000
2,40,000
2,40,000
2,40,000
Electricity Charges
10,000
11,000
12,100
13,310
14,641
Interest
1,06,000
56,667
40,667
24,667
8,667
Depriciation
1,00,000
1,00,000
1,00,000
1,00,000
1,00,000
Total
4,56,000
4,07,667
3,92,767
3,77,977
3,63,308
Break even Point
19.24%
17.21%
12.35%
9.73%
7.27%
Break even Sales
12,44,476
11,13,038
10,43,458
8,90,940
8,41,915
Margin of Safety Sales
52,23,524
53,54,962
74,04,542
82,61,060
1,07,41,085
Average BEP
13.16%
Assumptions
1
Sale Prices are expected to increase by Rs 5 per Liter for every year
2
Feed Cost is expected to increase by Rs.5 for every year
3
Salaries are expected to increase by 5% for every year
4
Term Loan Interest is considered at 10% p.a
5
Internal Accruals are expected to invest in Lands
6
Income tax is considered at rates applicable to Individuals as per Income tax act,1961
7
Depriciation on Bufellow & Other Equipment is considered @ 10% on Straight Line basis