PM FME- Detailed Project Report of Ice Cream Making Unit
1
DETAILED PROJECT REPORT
ICE CREAM MAKING 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: pmfme[email protected].in
Call: 0130-2281089
PM FME- Detailed Project Report of Ice Cream Making Unit
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TABLE OF CONTENTS
S No.
Topic
Page
Number
1.
Project Summary
3
2.
About the Product
4-7
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 & Equipments
12-13
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
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-Service Coverage Ratio
25
PM FME- Detailed Project Report of Ice Cream Making Unit
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1. PROJECT SUMMARY
1. Name of the proposed project
:
Ice Cream Making Unit
2. Nature of proposed project
:
Proprietorship/Company/Partnership
3. Proposed project capacity
:
171000 Kg/annum(55,60,65,70,&75% capacity
utilization in 1
st
to 5
th
Year respectively)
4. Raw materials
:
Fruit juice, Sweet Orange Essence, Glucose, Cups
& cones, Milk, Sugar, Stabilizers, Colors,etc.
5. Major product outputs
:
Ice Cream
6. Total project cost
:
Rs.14.00 Lakh
• Land development, building & Civil
Construction
:
Nil
• Machinery and equipment’s
:
Rs.8.87 Lakh
• Miscellaneous Fixed Assets
:
Rs.1.80 Lakh
• Working capital
:
Rs.3.33 Lakh
8. Means of Finance
• Subsidy (max 10lakhs)
:
Rs.3.73 Lakh
• Promoter’s contribution (min10%)
:
Rs.1.39 Lakh
• Term loan
:
Rs.5.87 Lakh
• Working Capital Requirement
:
Rs.3.00 Lakh
9. Profit after Depreciation, Interest & Tax
•
1
st
year
:
Rs.1.04 Lakh
•
2
nd
year
:
Rs.2.09 Lakh
•
3
rd
year
:
Rs.3.38 Lakh
•
4
th
year
:
Rs.4.70 Lakh
•
5th year
:
Rs.6.05 Lakh
11. Average DSCR
:
3.29
12. Term loan repayment
:
5 Years with 6 months grace period
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2. ABOUT THE PRODUCT
2.1. PRODUCT INTRODUCTION:
Ice cream is a sweetened frozen food typically eaten as a snack or dessert. It may be made from
dairy milk or cream and is flavored with a sweetener, either sugar or an alternative, and any
spice, such as cocoa or vanilla. Ice cream may be served in dishes, for eating with a spoon, or
licked from edible cones. Ice cream may be served with other desserts, such as apple pie, or as an
ingredient in ice cream floats, sundaes, milkshakes, ice cream cakes and even baked items, such
as Baked Alaska.
Ice cream is a mixture of milk, cream, sugar, and sometimes other ingredients that has been
frozen into a soft, creamy delight using special techniques. Ice cream has been a popular treat for
hundreds of years but has only become commonplace since the widespread use of refrigeration.
The exploding popularity of ice cream has led to a number of ice-cream variations including
frozen custard, frozen yogurt, and even non-dairy versions made with ingredients like coconut
milk.
The development of ice harvesting and the invention of the insulated icehouse in the nineteenth
century made ice more accessible to the general public. In 1846, Nancy Johnson designed a
hand-cranked ice cream freezer that improved production slightly. The first documented full-
time manufacturing of ice cream took place in Baltimore, Maryland, in 1851 when a milk dealer
named Jacob Fussell found himself with a surplus of fresh cream. Workipg quickly before the
cream soured, Fussell made an abundance of ice cream and sold it at a discount. The popular
demand soon convinced him that selling ice cream was more profitable than selling milk.
However, production was still cumbersome, and the industry grew slowly until the
industrialization movement of the early twentieth century brought electric power, steam power,
and mechanical refrigeration.
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Type of Ice Cream
a) Hard Ice Creams: This is the traditional type of ice cream which is made using milk,
sweeteners, cream, eggs, sugar, and stabilizers. These ice creams are found in shops, cafes
and ice cream parlors in different ice cream flavors list.
b) French Ice Creams: These ice creams are made using custard base along with milk, cream,
egg yolks, etc. These ice creams are also popularly known as custard ice creams.
c) Light Ice Creams: These are just like the regular easy ice creams with only one minute
difference. The milk that is used for preparing these ice creams contains 25% less fat.
d) Organic Ice Creams: This type of ice cream contains the ice cream names that are made
using only the natural and organic ingredients. These ice creams are generally considered
as good ice cream as they have no side effects on the body.
e) No Sugar Ice Creams: As the name indicates, these ice creams are made by either using
artificial sweeteners or sugar substitutes. Some of the latest ice creams are being made
using this recipe so as to help the people taste the flavors of ice cream along with taking
care of their daily diet. These ice creams can also be termed as sugar-free ice creams.
f) Soft Ice Creams: These soft ice creams are prepared at higher temperatures than the regular
ice creams. The production process conducted at a higher temperature helps the ice cream
mixtures to be soft, smooth and creamy for the maximum amount of time.
g) Lactose-Free Ice Creams: Lactose is a kind of sugar that is generally found in milk and
most of the dairy products. There are many people who have lactose intolerance, which
means that they have a problem with digesting lactose.
h) Gluten-Free Ice Creams: Gluten-free ice creams are for people who have celiac disease or
people suffering from gluten sensitivity. The celiac diseases are hard to inspect and thus
special care should be taken for these people.
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2.2 MARKET POTENTIAL:
India's ice cream market, one of the fastest growing markets in the Asia Pacific (APAC) region, is
forecast to grow from INR121. 4bn (US$1.8bn) in 2018 to INR 213. 6bn (US$2.9bn) in 2023,
registering a compound annual growth rate (CAGR) of 12%. The healthy growth of the market
can be attributed to numerous forces. Population growth, rising disposable incomes, urbanization
rates, changing consumer preferences, improved cold supply chain and growing deep freezer
penetration are some of the factors that are broadening the growth aspects of the market.
The overall ice cream market is estimated at over 250 mn litre valued at around Rs. 17 bn. Nearly
a fourth of the market by volume at 50 mn litres is in the organized sector with players like Amul,
Hindustan Unilever, Mother Dairy, Vadilal having a major share. In value terms, the organized
sector has an overall market of over Rs. 10 bn.
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2.3 RAW MATERIAL DESCRIPTION:
Following raw material is required as the major raw material for the manufacturing of Ice cream.
 Fruit juice
 Sweet Orange Essence
 Glucose
 Cups & cones
 Milk
 Sugar
 Stabilizers
 Colors: Lemon, yellow, orange etc. / Flavor- Chocolate, Vanilla, Strawberry, Blueberry etc.
Average raw material (cost per KG): Rs. 65-75
3. PROCESS FLOW CHART
 Preparation of liquid base- For this you will firstly have to collect fresh milk and perform a
quality test. Then it will be heated at degree Celsius temperature to separate cream.
 Standardization of this milk will be done wherein fat content is balanced in skim milk in the
required quantity.
 Sugar is now added to this milk in the required quantity.
 Milk is now pasteurized, in which milk is heated at 80 to 85 degree temperature for some time.
This process helps in reducing spoilage micro-organisms present in milk.
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 Now milk is cooled till 15 degree Celsius. Taking the help of pump, milk is now passed into
homogenizer here molecular breakdown of fat globules present in milk takes place by high
pressure fast flow.
 Now ice cream stabilizers and emulsifiers are added in milk at required composition and is
mixed properly by stirring. Now liquid base is ready.
 Now to prepare soft ice cream, this milk is transferred for ageing in ageing tank. Ageing tank
temperature is set at 4 to 5 degree Celsius where mixture is kept for 5 to 8 hours.
 After ageing mixture is transferred to flavor tank and flavor essence is added. Then mixture is
send to the continuous freezer, where final product is made.
 Packaging in box, cups, cones etc.
FLOW CHART OF ICE CREAM MAKING PROCESS
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4. ECONOMICS OF THE PROJECT
4.1. BASIS & PRESUMPTIONS
1. Production Capacity of Ice cream taken is 600 KG per day. First year, Capacity has been
taken @ 55%.
2. Working shift of 08 hours per day has been considered.
3. Raw Material stock is for 5 days and finished goods Closing Stock has
been taken for 5 days.
4. Credit period to Sundry Debtors has been given for 10 days.
5. Credit period by the Sundry Creditors has been provided for 8 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 15 KW.
10. Selling Prices & Raw material costing has been increased by 5% & 5% respectively in the
subsequent years.
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4.2. CAPACITY, UTILIZATION, PRODUCTION & OUTPUT
Items to be Manufactured
Ice Cream
Machine capacity Per hour
75
Kg
Total working Hours
8
Machine capacity Per Day
600
Kg
Working days in a month
25
Days
Working days per annum
300
Wastage Considered
5%
Raw material requirement
180000
Kg
Final Output per annum after wastage
171000
Kg
Final Product to be packed in 750 gram box size
Number of Boxes per annum
228000
Box
Production of Ice Cream
Production
Capacity
KG
1st year
55%
94,050
2nd year
60%
1,02,600
3rd year
65%
1,11,150
4th year
70%
1,19,700
5th year
75%
1,28,250
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Raw Material
Cost
Year
Capacity
Rate
Amount
Utilisation
(per Kg)
(Rs. in lacs)
1st year
55%
65.00
64.35
2nd year
60%
68.00
73.44
3rd year
65%
71.00
83.07
4th year
70%
75.00
94.50
5th year
75%
79.00
106.65
COMPUTATION OF SALE
Particulars
1st year
2nd year
3rd year
4th year
5th year
Op Stock
-
1,568
1,710
1,853
1,995
Production
94,050
1,02,600
1,11,150
1,19,700
1,28,250
Less : Closing
Stock
1,568
1,710
1,853
1,995
2,138
Net Sale
92,483
1,02,458
1,11,008
1,19,558
1,28,108
sale price
100.00
105.00
110.00
116.00
122.00
Sales (in Lacs)
92.48
107.58
122.11
138.69
156.29
4.3. PREMISES/INFRASTRUCTURE
The approximate total area required for complete small scale factory setup is 1500-1800 square
feet for smooth production including storage area. It is expected that the premises will be on rental.
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4.4. MACHINERY & EQUIPMENTS
S.N.
Item Description
Image
1
Batch freezer
2
Pasteurizer
Pasteurization is used to achieve food
preservation and food safety. Most
liquid products are heat treated in a
continuous system where heat can be
applied using a plate heat exchanger or
the direct or indirect use of
hot water and steam.
3
Homogenizer
Homogenization provides the following
functions in ice
cream
manufac
ture: Reduces size of fat
globules. Increases surface area.
4
Ice cream hardener
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5
Other Equipment’s
Collection tank, Cream seperator, ice cream
moulds, other handling equipment’s, Ageing
tank
Machine
Unit
Rate
Price
Batch freezer (200
Liter)
1
3,80,000
3,80,000
Pasteurizer (100
Liter/hr)
1
1,30,000
1,30,000
Homogenizer (100
Liter)
1
1,32,000
1,32,000
Ice cream hardener
1
95,000
95,000
Other Equipment’s
-
1,50,000
1,50,000
Note: Cost of the machinery is approx. Rs.8.87 Lakhs excluding GST and other transportation
cost.
4.5. MISCELLANEOUS FIXED ASSETS
 Water Supply Arrangements
 Furniture
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4.6. TOTAL COST OF PROJECT
COST OF PROJECT
(in Lacs)
PARTICULARS
Amount
Land & Building
Owned/Rented
Plant & Machinery
8.87
Miscellaneous Assets
1.80
Working capital
3.33
Total
14.00
4.7. MEANS OF FINANCE
MEANS OF FINANCE
PARTICULARS
AMOUNT
Own Contribution (min 10%)
1.39
Subsidy @35%(Max. Rs 10 Lac) 3.73
Term Loan @ 55%
5.87
Working Capital (Bank Finance)
3.00
Total
14.00
4.8. TERM LOAN: Term loan of Rs.5.87 Lakh is required for project cost of Rs.14.00 Lakh.
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4.9. TERM LOAN REPAYMENT & INTEREST SCHEDULE
REPAYMENT SCHEDULE OF TERM LOAN
Interest
11.00%
Year
Particulars
Amount
Addition
Total
Interest
Repayment
Closing
Balance
1st
Opening Balance
1st month
-
5.87
5.87
-
-
5.87
2nd month
5.87
-
5.87
0.05
-
5.87
3rd month
5.87
-
5.87
0.05
-
5.87
4th month
5.87
-
5.87
0.05
5.87
5th month
5.87
-
5.87
0.05
5.87
6th month
5.87
-
5.87
0.05
5.87
7th month
5.87
-
5.87
0.05
0.11
5.76
8th month
5.76
-
5.76
0.05
0.11
5.65
9th month
5.65
-
5.65
0.05
0.11
5.54
10th month
5.54
-
5.54
0.05
0.11
5.43
11th month
5.43
-
5.43
0.05
0.11
5.33
12th month
5.33
-
5.33
0.05
0.11
5.22
0.58
0.65
2nd
Opening Balance
1st month
5.22
-
5.22
0.05
0.11
5.11
2nd month
5.11
-
5.11
0.05
0.11
5.00
3rd month
5.00
-
5.00
0.05
0.11
4.89
4th month
4.89
-
4.89
0.04
0.11
4.78
5th month
4.78
-
4.78
0.04
0.11
4.67
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6th month
4.67
-
4.67
0.04
0.11
4.56
7th month
4.56
-
4.56
0.04
0.11
4.46
8th month
4.46
-
4.46
0.04
0.11
4.35
9th month
4.35
-
4.35
0.04
0.11
4.24
10th month
4.24
-
4.24
0.04
0.11
4.13
11th month
4.13
-
4.13
0.04
0.11
4.02
12th month
4.02
-
4.02
0.04
0.11
3.91
0.51
1.30
3rd
Opening Balance
1st month
3.91
-
3.91
0.04
0.11
3.80
2nd month
3.80
-
3.80
0.03
0.11
3.69
3rd month
3.69
-
3.69
0.03
0.11
3.59
4th month
3.59
-
3.59
0.03
0.11
3.48
5th month
3.48
-
3.48
0.03
0.11
3.37
6th month
3.37
-
3.37
0.03
0.11
3.26
7th month
3.26
-
3.26
0.03
0.11
3.15
8th month
3.15
-
3.15
0.03
0.11
3.04
9th month
3.04
-
3.04
0.03
0.11
2.93
10th month
2.93
-
2.93
0.03
0.11
2.83
11th month
2.83
-
2.83
0.03
0.11
2.72
12th month
2.72
-
2.72
0.02
0.11
2.61
0.36
1.30
4th
Opening Balance
1st month
2.61
-
2.61
0.02
0.11
2.50
2nd month
2.50
-
2.50
0.02
0.11
2.39
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3rd month
2.39
-
2.39
0.02
0.11
2.28
4th month
2.28
-
2.28
0.02
0.11
2.17
5th month
2.17
-
2.17
0.02
0.11
2.06
6th month
2.06
-
2.06
0.02
0.11
1.96
7th month
1.96
-
1.96
0.02
0.11
1.85
8th month
1.85
-
1.85
0.02
0.11
1.74
9th month
1.74
-
1.74
0.02
0.11
1.63
10th month
1.63
-
1.63
0.01
0.11
1.52
11th month
1.52
-
1.52
0.01
0.11
1.41
12th month
1.41
-
1.41
0.01
0.11
1.30
0.22
1.30
5th
Opening Balance
1st month
1.30
-
1.30
0.01
0.11
1.20
2nd month
1.20
-
1.20
0.01
0.11
1.09
3rd month
1.09
-
1.09
0.01
0.11
0.98
4th month
0.98
-
0.98
0.01
0.11
0.87
5th month
0.87
-
0.87
0.01
0.11
0.76
6th month
0.76
-
0.76
0.01
0.11
0.65
7th month
0.65
-
0.65
0.01
0.11
0.54
8th month
0.54
-
0.54
0.00
0.11
0.43
9th month
0.43
-
0.43
0.00
0.11
0.33
10th month
0.33
-
0.33
0.00
0.11
0.22
11th month
0.22
-
0.22
0.00
0.11
0.11
12th month
0.11
-
0.11
0.00
0.11
-
0.08
1.30
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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
1.39
1.59
1.78
2.02
2.25
Raw Material
1.07
1.22
1.38
1.58
1.78
Closing Stock
2.46
2.82
3.17
3.59
4.02
COMPUTATION OF WORKING CAPITAL REQUIREMENT
TRADITIONAL METHOD
(in Lacs)
Particulars Amount Own Margin Bank Finance
Finished Goods & Raw Material
2.46
Less : Creditors
1.72
Paid stock 0.75 10% 0.07 90% 0.67
Sundry Debtors 3.08 10% 0.31 90% 2.77
3.83 0.38 3.45
MPBF
3.45
WORKING CAPITAL LIMIT DEMAND ( from Bank)
3.00
Working Capital Margin
0.33
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4.11. SALARY & WAGES
BREAK UP OF LABOUR CHARGES
Particulars
Wages
No of
Total
Rs. per Month
Employees
Salary
Skilled (in thousand rupees)
14,000
2
28,000
Unskilled (in thousand rupees)
8,500
2
17,000
Total salary per month
45,000
Total annual labour charges
(in lacs)
5.40
BREAK UP OF STAFF SALARY CHARGES
Particulars
Salary
No of
Total
Rs. per Month
Employees
Salary
Helper
7,000
2
14,000
Accountant
15,000
1
15,000
Total salary per month
29,000
Total annual Staff charges
(in lacs)
3.48
4.12 POWER REQUIREMENT
Utility Charges (per month)
Particulars
value
Description
Power connection required
15
KWH
consumption per day
120
units
Consumption per month
3,000
units
Rate per Unit
10
Rs.
power Bill per month
30,000
Rs.
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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
8.87
1.80
10.67
Total
8.87
1.80
10.67
Less : Depreciation
1.33
0.18
1.51
WDV at end of Year
7.54
1.62
9.16
Additions During The Year
-
-
-
Total
7.54
1.62
9.16
Less : Depreciation
1.13
0.16
1.29
WDV at end of Year
6.41
1.46
7.87
Additions During The Year
-
-
-
Total
6.41
1.46
7.87
Less : Depreciation
0.96
0.15
1.11
WDV at end of Year
5.45
1.31
6.76
Additions During The Year
-
-
-
Total
5.45
1.31
6.76
Less : Depreciation
0.82
0.13
0.95
WDV at end of Year
4.63
1.18
5.81
Additions During The Year
-
-
-
Total
4.63
1.18
5.81
Less : Depreciation
0.69
0.12
0.81
WDV at end of Year
3.94
1.06
5.00
4.14. REPAIR & MAINTENANCE:
Repair & Maintenance is 2.5% of Gross Sale.
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4.15. PROJECTIONS OF PROFITABILITY ANALYSIS
PROJECTED PROFITABILITY STATEMENT
(in Lacs)
PARTICULARS
1st year
2nd
year
3rd
year
4th
year
5th year
Capacity Utilisation %
55%
60%
65%
70%
75%
SALES
Gross Sale
Ice Cream
92.48
107.58
122.11
138.69
156.29
Total
92.48
107.58
122.11
138.69
156.29
COST OF SALES
Raw Material Consumed
64.35
73.44
83.07
94.50
106.65
Electricity Expenses
3.60
4.14
4.76
5.48
6.02
Depreciation
1.51
1.29
1.11
0.95
0.81
Wages & labour
5.40
5.94
6.53
7.06
7.62
Repair & maintenance
2.31
2.69
3.05
3.47
3.91
Packaging
6.20
7.96
8.55
9.57
9.69
Cost of Production
83.37
95.46
107.07
121.02
134.70
Add: Opening Stock /WIP
-
1.39
1.59
1.78
2.02
Less: Closing Stock /WIP
1.39
1.59
1.78
2.02
2.25
Cost of Sales
81.98
95.26
106.88
120.78
134.48
GROSS PROFIT
10.50
12.32
15.23
17.90
21.82
11.36%
11.45%
12.47%
12.91%
13.96%
Salary to Staff
3.48
4.04
4.92
5.66
6.23
Interest on Term Loan
0.58
0.51
0.36
0.22
0.08
Interest on working Capital
0.33
0.33
0.33
0.33
0.33
Rent
3.60
3.96
4.36
4.79
5.27
selling & adm exp
1.48
1.40
1.83
2.08
3.44
TOTAL
9.47
10.23
11.81
13.09
15.35
NET PROFIT
1.04
2.09
3.42
4.82
6.47
1.12%
1.94%
2.80%
3.47%
4.14%
Taxation
-
-
0.05
0.12
0.42
PROFIT (After Tax)
1.04
2.09
3.38
4.70
6.05
PM FME- Detailed Project Report of Ice Cream Making Unit
22
4.16. BREAK EVEN POINT ANALYSIS
BREAK EVEN POINT ANALYSIS
Year
I
II
III
IV
V
Net Sales & Other Income
92.48
107.58
122.11
138.69
156.29
Less : Op. WIP Goods
-
1.39
1.59
1.78
2.02
Add : Cl. WIP Goods
1.39
1.59
1.78
2.02
2.25
Total Sales
93.87
107.78
122.30
138.92
156.52
Variable & Semi Variable Exp.
Raw Material Consumed
64.35
73.44
83.07
94.50
106.65
Electricity Exp/Coal Consumption at
85%
3.06
3.52
4.05
4.65
5.12
Wages & Salary at 60%
5.33
5.99
6.88
7.63
8.31
Selling & adminstrative Expenses 80%
1.18
1.12
1.47
1.66
2.75
Interest on working Capital
0.33
0.33
0.33
0.33
0.33
Repair & maintenance
2.31
2.69
3.05
3.47
3.91
Packaging
6.20
7.96
8.55
9.57
9.69
Total Variable & Semi Variable Exp
82.76
95.04
107.39
121.82
136.76
Contribution
11.11
12.74
14.91
17.10
19.76
Fixed & Semi Fixed Expenses
Electricity Exp/Coal Consumption at
15%
0.54
0.62
0.71
0.82
0.90
Wages & Salary at 40%
3.55
3.99
4.58
5.09
5.54
Interest on Term Loan
0.58
0.51
0.36
0.22
0.08
Depreciation
1.51
1.29
1.11
0.95
0.81
Selling & adminstrative Expenses 20%
0.30
0.28
0.37
0.42
0.69
Rent
3.60
3.96
4.36
4.79
5.27
Total Fixed Expenses
10.08
10.65
11.49
12.29
13.29
Capacity Utilization
55%
60%
65%
70%
75%
OPERATING PROFIT
1.04
2.09
3.42
4.82
6.47
BREAK EVEN POINT
50%
50%
50%
50%
50%
BREAK EVEN SALES
85.12
90.14
94.24
99.80
105.29
PM FME- Detailed Project Report of Ice Cream Making Unit
23
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
6.16
7.75
9.62
12.32
Add:- Own Capital
1.39
Add:- Retained Profit
1.04
2.09
3.38
4.70
6.05
Less:- Drawings
-
0.50
1.50
2.00
3.50
Subsidy/grant
3.73
Closing Balance
6.16
7.75
9.62
12.32
14.87
Term Loan
5.22
3.91
2.61
1.30
-
Working Capital Limit
3.00
3.00
3.00
3.00
3.00
Sundry Creditors
1.72
1.96
2.22
2.52
2.84
Provisions & Other Liab
0.40
0.50
0.60
0.72
0.86
TOTAL :
16.49
17.12
18.05
19.87
21.58
Assets
Fixed Assets ( Gross)
10.67
10.67
10.67
10.67
10.67
Gross Dep.
1.51
2.80
3.91
4.86
5.67
Net Fixed Assets
9.16
7.87
6.76
5.81
5.00
Current Assets
Sundry Debtors
3.08
3.59
4.07
4.62
5.21
Stock in Hand
2.46
2.82
3.17
3.59
4.02
Cash and Bank
1.79
2.85
4.05
5.84
7.35
TOTAL :
16.49
17.12
18.05
19.87
21.58
PM FME- Detailed Project Report of Ice Cream Making Unit
24
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
1.39
Net Profit
1.04
2.09
3.42
4.82
6.47
Depriciation & Exp. W/off
1.51
1.29
1.11
0.95
0.81
Increase in Cash Credit
3.00
-
-
-
-
Increase In Term Loan
5.87
-
-
-
-
Increase in Creditors
1.72
0.24
0.26
0.30
0.32
Increase in Provisions & Oth lib
0.40
0.10
0.10
0.12
0.14
Sunsidy/grant
3.73
TOTAL :
18.66
3.72
4.89
6.19
7.75
APPLICATION OF FUND
Increase in Fixed Assets
10.67
Increase in Stock
2.46
0.35
0.35
0.42
0.43
Increase in Debtors
3.08
0.50
0.48
0.55
0.59
Repayment of Term Loan
0.65
1.30
1.30
1.30
1.30
Drawings
-
0.50
1.50
2.00
3.50
Taxation
-
-
0.05
0.12
0.42
TOTAL :
16.87
2.66
3.69
4.40
6.24
Opening Cash & Bank Balance
-
1.79
2.85
4.05
5.84
Add : Surplus
1.79
1.06
1.20
1.79
1.51
Closing Cash & Bank Balance
1.79
2.85
4.05
5.84
7.35
PM FME- Detailed Project Report of Ice Cream Making Unit
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
2.55
3.38
4.48
5.65
6.86
Interest on Term Loan
0.58
0.51
0.36
0.22
0.08
Total
3.12
3.89
4.85
5.87
6.94
REPAYMENT
Instalment of Term Loan
0.65
1.30
1.30
1.30
1.30
Interest on Term Loan
0.58
0.51
0.36
0.22
0.08
Total
1.23
1.81
1.67
1.53
1.38
DEBT SERVICE COVERAGE
RATIO
2.54
2.14
2.91
3.85
5.02
AVERAGE D.S.C.R.
3.29