PROJECT REPORT

Of

PICKLE UNIT

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Pickle Making unit.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also prepare
project report on any subject as per your requirement.]

Lucknow Office: Sidhivinayak Building ,

27/1/B, Gokhlley Marg, Lucknow-226001

Delhi Office : Multi Disciplinary Training

Centre, Gandhi Darshan Rajghat,
New Delhi 110002

Email : [email protected]
Contact : +91 7526000333, 444, 555
 PROJECT AT A GLANCE

1 Name of the Entreprenuer XXXXXXX

2 Constitution (legal Status) XXXXXXX

3 Father's/Spouce's Name XXXXXXXX

4 Unit Address XXXXXXXX

Taluk/Block:
District : XXXXX
Pin: XXXXX State:
E-Mail XXXXX
Mobile XXXXX

5 Product and By Product : Pickle Unit

6 Name of the project / business activity proposed : Pickle Unit

7 Cost of Project : Rs22.00lac

8 Means of Finance
Term Loan Rs.15.32 Lacs
KVIC Margin Money - As per Project Eligibility
Own Capital Rs.2.3 Lacs
Working Capital Rs.5.4 Lacs

9 Debt Service Coverage Ratio : 3.85

10 Pay Back Period : 5 Years

11 Project Implementation Period : 8 Months

12 Break Even Point : 26%

13 Employment : 10 Persons

14 Power Requirement : 5.00 HP

15 Major Raw materials : Fruits,Sugar, Pectin, Citric Acid, Preservatives, Mustard Oil, Salt, Spices etc

16 Estimated Annual Sales Turnover : 37.80 Lacs

16 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lacs)

Particulars Amount
Land 2000 Sqft Rented/Owned
Building /shed 1200 Sq Ft) 4.80
Plant & Machinery 10.39
Furniture & Fixtures 1.23
Pre-operative Expenses 0.60
Working Capital Requirement 6.00
Total 23.01

MEANS OF FINANCE
Particulars Amount
Own Contribution @10% 2.30
Term Loan 15.32
Workign Capital Finance 5.40
Total 23.01
General Special
Beneficiary's Margin Money 10% 5%
(% of Project Cost)
PLANT & MACHINERY

PARTICULARS QTY. RATE AMOUNT IN RS.

Plant & Machinery / equipments 1
S.S.Top Working Table, Two head bottle Washing 1
machine, SS Vessles for Oil dipping and Storage, 500,000.00 500,000.00
S.S.Knife, ladles, Small utensils, mug, cups
Vegetable/Fruit Cutting Machine 1 135,000.00 135,000.00
Spices Mixing Machine 1 110,000.00 110,000.00
Automatic Filling Sealing and Packing Machine 1 185,000.00 185,000.00
Weighing Scale 3 18,000.00 54,000.00
Material Handling Equipment LS 30,000.00 30,000.00
Misc. Tools LS 25000 25,000.00
total Plant & Machinery LS 1,039,000.00
PROJECTED CASH FLOW STATEMENT

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

SOURCES OF FUND

Share Capital 2.30 -

Reserve & Surplus 9.93 12.88 16.45 19.87 23.14
Depriciation & Exp. W/off 2.10 1.87 1.62 1.40 1.21
Increase in Cash Credit 5.40 - - - -
Increase In Term Loan 15.32 - - - -
Increase in Creditors 0.75 0.13 0.13 0.13 0.13
Increase in Provisions 0.36 0.04 0.04 0.04 0.05

TOTAL : 36.16 14.92 18.23 21.44 24.53

APPLICATION OF FUND

Increase in Fixed Assets 16.42 - - - -

Increase in Stock 4.86 0.81 0.81 0.81 0.81
Increase in Debtors 1.89 0.53 0.35 0.35 0.35
Increase in Deposits & Adv 2.50 0.25 0.28 0.30 0.33
Repayment of Term Loan - 3.83 3.83 3.83 3.01
Taxation 0.99 1.29 3.29 3.97 4.63

TOTAL : 26.66 6.70 8.55 9.27 9.14

Opening Cash & Bank Balance - 9.50 17.72 27.39 39.57

Add : Surplus 9.50 8.22 9.68 12.17 15.39

Closing Cash & Bank Balance 9.50 17.72 27.39 39.57 54.96
PROJECTED BALANCE SHEET

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

SOURCES OF FUND

Capital Account 2.30 2.30 2.30 2.30 2.30

Retained Profit 8.94 20.54 33.69 49.59 68.10

Term Loan 15.32 11.49 7.66 3.83 0.81

Cash Credit 5.40 5.40 5.40 5.40 5.40
Sundry Creditors 0.75 0.88 1.00 1.13 1.25
Provisions & Other Liab 0.36 0.40 0.44 0.48 0.53

TOTAL : 33.07 41.00 50.49 62.72 78.40

APPLICATION OF FUND

Fixed Assets ( Gross) 16.42 16.42 16.42 16.42 16.42

Gross Dep. 2.10 3.97 5.59 7.00 8.21
Net Fixed Assets 14.32 12.45 10.83 9.42 8.21

Current Assets
Sundry Debtors 1.89 2.42 2.77 3.12 3.47
Stock in Hand 4.86 5.67 6.48 7.29 8.10
Cash and Bank 9.50 17.72 27.39 39.57 54.96
Deposits & Advances 2.50 2.75 3.03 3.33 3.66

TOTAL : 33.07 41.00 50.49 62.72 78.40

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

A) SALES
Gross Sale 37.80 48.30 55.30 62.30 69.30

Total (A) 37.80 48.30 55.30 62.30 69.30

B) COST OF SALES

Raw Mateiral Consumed 15.00 17.50 20.00 22.50 25.00

Elecricity Expenses 0.43 0.50 0.57 0.64 0.72
Repair & Maintenance - 0.48 0.55 0.62 0.69
Labour & Wages 5.28 5.81 6.39 7.03 7.73
Depriciation 2.10 1.87 1.62 1.40 1.21
Consumables,packaging and Other
Expenses 1.89 2.42 2.77 3.12 3.47
Cost of Production 24.70 28.58 31.90 35.31 38.82

Add: Opening Stock /WIP - 3.36 3.92 4.48 5.04

Less: Closing Stock /WIP 3.36 3.92 4.48 5.04 5.60

Cost of Sales (B) 21.34 28.02 31.34 34.75 38.26

C) GROSS PROFIT (A-B) 16.46 20.28 23.96 27.55 31.04

44% 42% 43% 44% 45%
D) Bank Interest (Term Loan ) 1.32 1.60 1.16 0.72 0.29
Bank Interest ( C.C. Limit ) 0.62 0.62 0.62 0.62 0.62
E) Salary to Staff 3.83 4.21 4.63 5.10 5.60
F) Selling & Adm Expenses Exp. 0.76 0.97 1.11 1.25 1.39

TOTAL (D+E) 6.53 7.39 7.51 7.68 7.90

H) NET PROFIT 9.93 12.88 16.45 19.87 23.14

I) Taxation 0.99 1.29 3.29 3.97 4.63

J) PROFIT (After Tax) 8.94 11.60 13.16 15.90 18.51

COMPUTATION OF MANUFACTURING OF Pickle

Items to be Manufactured Pickle 40.00 MT

Manufacturing Capacity per day 0.20 MT

No. of Working Hour 8

No of Working Days per month 25

No. of Working Day per annum 200

Total Production per Annum 40.00 MT

Year Capacity MT
Utilisation

IST YEAR 60% 24.00

IIND YEAR 70% 28.00
IIIRD YEAR 80% 32.00
IVTH YEAR 90% 36.00
VTH YEAR 100% 40.00

COMPUTATION OF RAW MATERIAL

Item Name Quantity of Recovery Unit Rate of Total Cost

Raw Material/MT /MT Per Annum (100%)

Bamboo
g Shoot, carrot, coconut, fish, garlic, 100% 100.00 13,500.00 1,350,000.00
Mustard Oil, Salt, Spices etc. LS - 750,000.00
Packaging Material including Plastic Jar,
Pouches, Packaging Cardboard Boxes and LS 400,000.00

Total (Rounded off in lacs) 2,500,000.00

Expenses on Raw Material at 100% capacity
(Rs)

Annual Consumption cost ( In Lacs) 25.00

Raw Material Consumed Capacity Amount (Rs.)

Utilisation

IST YEAR 60% 15.00

IIND YEAR 70% 17.50
IIIRD YEAR 80% 20.00
IVTH YEAR 90% 22.50
VTH YEAR 100% 25.00

COMPUTATION OF SALE
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

Finished Goods
(30Days requirement) 3.36 3.92 4.48 5.04 5.60
Raw Material
(30 Days requirement) 1.50 1.75 2.00 2.25 2.50

Closing Stock 4.86 5.67 6.48 7.29 8.10

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Total
Amount
Stock in Hand 4.86

Sundry Debtors 1.89

Total 6.75
Sundry Creditors 0.75

Working Capital Requirement 6.00

Margin 0.60

Working Capital Finance 5.40

BREAK UP OF LABOUR

Particulars Wages No of Total

Per Month Employees Salary
Supervisor Food specialist 12,000.00 1 12,000.00
Skilled Worker 8,000.00 2 16,000.00
Unskilled Worker 6,000.00 4 24,000.00

40,000.00
Add: 10% Fringe Benefit 4,000.00
Total Labour Cost Per Month 44,000.00
Total Labour Cost for the year ( In Rs. Lakhs) 7 5.28

BREAK UP OF SALARY

Particulars Salary No of Total

Per Month Employees Salary
Manager self
Accountant 9,000.00 1 9,000.00
Sales 10,000.00 2 20,000.00
Total Salary Per Month 29,000.00

Add: 10% Fringe Benefit 2,900.00

Total Salary for the month 31,900.00

Total Salary for the year ( In Rs. Lakhs) 3 3.83

COMPUTATION OF DEPRECIATION

Plant &
Description Land Building/shed Machinery Furniture TOTAL

Rate of Depreciation 10.00% 15.00% 10.00%

Opening Balance Leased - - - -
Addition - 4.80 10.39 1.23 16.42
- 4.80 10.39 1.23 16.42
Less : Depreciation - 0.48 1.56 0.06 2.10
WDV at end of Ist year - 4.32 8.83 1.17 14.32
Additions During The Year - - - - -
- 4.32 8.83 1.17 14.32
Less : Depreciation - 0.43 1.32 0.12 1.87
WDV at end of IInd Year - 3.89 7.51 1.05 12.45
Additions During The Year - - - - -

- 3.89 7.51 1.05 12.45

Less : Depreciation - 0.39 1.13 0.11 1.62
WDV at end of IIIrd year - 3.50 6.38 0.95 10.83
Additions During The Year - - - - -
- 3.50 6.38 0.95 10.83
Less : Depreciation - 0.35 0.96 0.09 1.40
WDV at end of IV year - 3.15 5.42 0.85 9.42
Additions During The Year - - - - -
- 3.15 5.42 0.85 9.42
Less : Depreciation - 0.31 0.81 0.09 1.21
WDV at end of Vth year - 2.83 4.61 0.77 8.21
REPAYMENT SCHEDULE OF TERM LOAN 11.5%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

IST YEAR Opening Balance

Ist Quarter - 15.32 15.32 - - 15.32
Iind Quarter 15.32 - 15.32 0.44 - 15.32
IIIrd Quarter 15.32 - 15.32 0.44 - 15.32
Ivth Quarter 15.32 - 15.32 0.44 - 15.32
1.32 -
IIND YEAR Opening Balance
Ist Quarter 15.32 - 15.32 0.44 0.96 14.36
Iind Quarter 14.36 - 14.36 0.41 0.96 13.40
IIIrd Quarter 13.40 - 13.40 0.39 0.96 12.45
Ivth Quarter 12.45 12.45 0.36 0.96 11.49
1.60 3.83
IIIRD YEAR Opening Balance
Ist Quarter 11.49 - 11.49 0.33 0.96 10.53

Iind Quarter 10.53 - 10.53 0.30 0.96 9.57

IIIrd Quarter 9.57 - 9.57 0.28 0.96 8.62
Ivth Quarter 8.62 8.62 0.25 0.96 7.66
1.16 3.83
IVTH YEAR Opening Balance
Ist Quarter 7.66 - 7.66 0.22 0.96 6.70
Iind Quarter 6.70 - 6.70 0.19 0.96 5.74
IIIrd Quarter 5.74 - 5.74 0.17 0.96 4.79
Ivth Quarter 4.79 4.79 0.14 0.96 3.83
0.72 3.83
VTH YEAR Opening Balance
Ist Quarter 3.83 - 3.83 0.11 0.96 2.87
Iind Quarter 2.87 - 2.87 0.08 0.96 1.91
IIIrd Quarter 1.91 - 1.91 0.06 0.55 1.36
Ivth Quarter 1.36 1.36 0.04 0.55 0.81

0.29 3.01
CALCULATION OF D.S.C.R

PARTICULARS IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

CASH ACCRUALS 11.04 13.47 14.78 17.30 19.73

Interest on Term Loan 1.32 1.60 1.16 0.72 0.29

Total 12.36 15.07 15.93 18.01 20.02

REPAYMENT
Instalment of Term Loan 3.83 3.83 3.83 3.01 3.01
Interest on Term Loan 1.32 1.60 1.16 0.72 0.29

Total 5.15 5.43 4.99 3.73 3.30

DEBT SERVICE COVERAGE RATIO 2.40 2.78 3.20 4.83 6.06

AVERAGE D.S.C.R. 3.85

COMPUTATION OF SALE

Particulars IST YEAR IIND YEAR IIIRD YEAR IVTH YEAR VTH YEAR

Op Stock - 2.40 2.80 3.20 3.60

Production 24.00 28.00 32.00 36.00 40.00

24.00 30.40 34.80 39.20 43.60

Less : Closing Stock 2.40 2.80 3.20 3.60 4.00

Net Sale 21.60 27.60 31.60 35.60 39.60

Sale Price per MT 175,000.00 175,000.00 175,000.00 175,000.00 175,000.00

Sale (in Lacs) 37.80 48.30 55.30 62.30 69.30

COMPUTATION OF ELECTRICITY
(A) POWER CONNECTION

Total Working Hour per day Hours 8

Electric Load Required HP 5
Load Factor 0.7460
Electricity Charges per unit 8.00
Total Working Days 300
Electricity Charges ( 8 Hrs Per day ) 71,616.00

Add : Minimim Charges (@ 10%)

(B) DG set
No. of Working Days 300 days
No of Working Hours - Hour per day
Total no of Hour -
Diesel Consumption per Hour 8
Total Consumption of Diesel -
Cost of Diesel 65.00 Rs. /Ltr
Total cost of Diesel -

Add : Lube Cost @15% -

Total -

Total cost of Power & Fuel at 100% 0.72

Year Capacity Amount

(in Lacs)

IST YEAR 60% 0.43

IIND YEAR 70% 0.50
IIIRD YEAR 80% 0.57
IVTH YEAR 90% 0.64
VTH YEAR 100% 0.72
BREAK EVEN POINT ANALYSIS

Year I II III IV V

Net Sales & Other Income 37.80 48.30 55.30 62.30 69.30

Less : Op. WIP Goods          ‐        3.36        3.92        4.48        5.04
Add : Cl. WIP Goods        3.36        3.92        4.48        5.04        5.60

Total Sales 41.16 48.86 55.86 62.86 69.86

Variable & Semi Variable Exp.

 Raw Material & Tax      15.00      17.50      20.00      22.50      25.00

Electricity Exp/Coal Consumption at 85%         0.37        0.43        0.49        0.55        0.61
Manufacturing Expenses 80%        1.51        2.32        2.65        2.99        3.33
 Wages & Salary at 60%         5.46        6.01        6.61        7.27        8.00
Selling & adminstrative Expenses 80%        0.60        0.77        0.88        1.00        1.11
 Intt. On Working Capital Loan         0.62        0.62        0.62        0.62        0.62
Total Variable & Semi Variable Exp      23.57      27.65      31.26      34.93      38.67

Contribution      17.59      21.21      24.60      27.93      31.19

Fixed & Semi Fixed Expenses

Manufacturing Expenses 20% 0.38 0.58 0.66 0.75 0.83

Electricity Exp/Coal Consumption at 15%  0.06 0.08 0.09 0.10 0.11
 Wages & Salary at 40%  3.64 4.01 4.41 4.85 5.33
 Interest on Term Loan  1.32 1.60 1.16 0.72 0.29
 Depreciation   2.10 1.87 1.62 1.40 1.21
Selling & adminstrative Expenses 20% 0.15 0.19 0.22 0.25 0.28
Total Fixed Expenses 7.66 8.33 8.16 8.06 8.05

 Capacity Utilization  60% 70% 80% 90% 100%

OPERATING PROFIT 9.93 12.88 16.45 19.87 23.14
BREAK EVEN POINT 26% 27% 27% 26% 26%
BREAK EVEN SALES 17.92 19.18 18.52 18.14 18.03
 DISCLAIMER

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