Hooves&WingsFarm

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Project Report on Goat Farming
Nagavalli puttunpur Village Post District - Chamarajanagar- (Karnataka)
INDIA.Mobile:

Hidayath khan
 Hooves&WingsFarms

SUBMITTED BY
BADRUNNISA / SAIFULLA KHAN
Nagavalli, puttunpura village post dist : Chamarajanagar, Karnataka.

SUBMITTED UNDER
Integrated Development of Small Ruminants and Rabbits Scheme
Sponsored by –
National Bank for Agriculture and Rural Development (NABARD)
www.nabard.org

2018-19

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Contents:

 Project at Glance
 Introduction to Goat Farming
 Why Goat Farming
 Market Survey
 Advantages of Goat Farming
 SWOT Analysis
 Environment Analysis
 Technical Feasibility:
- Land Building
- Availability of Breeders (adults Ewes)/ Rams
- Water and Electricity
- Veterinary Aid/ Facilities
- Availability of Animal feed/ Green and Dry Fodder
- Availability of Labour
- Housing Management
- Feeding Management
- Care of Goats during pregnancy
- Care of Kids
- Health Care Management
- Goat Training centers
- Experience of farmer and assistance from Government
 Economic Viability:
- Unit Cost of Animals
- Input Cost for feeds and fodders, Veterinary aid, Insurance Charges etc
- Project Cost
- Techno Economic Parameters
- Flock Projection Chart
- Financial projection and Cash flow for 6 years
- EMI and Interest repayment schedule
- BCR and DSCR Ratio

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PROJECT AT GLANCE:

1. Name of the Unit :: HOOVES & WINGS FARMS

2. Address :: Nagavalli puttunpura village post dist : Chamarajanagar,

Karnataka.

3. Constitution :: Proprietorship

4. Name of the Proprietor :: Badrunnisa w/o Saifulla khan

5. Date of establishment :: New Unit

6. Activity :: Goat Breeding Farm

7. The Project / Purpose :: Goat Breeding Farm with 158 goats

8. Cost of Project :: Rs.20.60 lacs

9. Means of Finance :: Own contribution : Rs.4.00 lacs

Investor Participation : Rs.00.00 lacs

Term Loan : Rs.16.60 lacs

10. Promoter’s contribution :: 19%

11. Investor Contribution :: 0%

11. Project Debt Equity Ratio :: 0.38

12. Average Cumulative DSCR :: 1.32

13. Credit limit required :: Term loan Rs. 10.00 lacs.

14. Moratorium Period :: 12 months

15. Repayment Period :: 5 years

16. Total Period of Loan :: 5 years 12 months

17. Security :: Land & house documents will be furnished

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INTRODUCTION TO GOAT FARMING:
This project report envisages setting up of a new Goat Rearing Unit on a medium scale. The animal husbandry
sector offers a good opportunity for those who are looking for new and expanding markets. While the farming
sector is more or less stagnant, the allied activities like Goat Rearing, Dairying etc has seen much activity.
Goats with its multi-facet utility for meat, milk, skins and manure, form an important component of rural
economy. It provides a dependable source of income through sale of animals. The advantages of goat farming
are:
 It does not need expensive buildings to house them and on the other hand require less labour.
 The foundation stock is relatively cheap and the flock can be multiplied rapidly.
 Goat will eat varied kinds of plants compared to other livestock. This makes them excellent weed
destroyer.
 The production of meat and manure provide two different sources of income.
 Mutton is one kind of meat, towards which there is no prejudice by any community in India and further
development of superior breeds for mutton production will have great scope in developing economy of
India.
Realizing the opportunities in Goat Rearing, Hooves & Wings Farms, a proprietary concern of Miss.
BADRUNNISA w/o SAIFULLA KHAN intends to set up a new unit for breeding Goats. The unit comes in
promoters land measuring 2.9 acres at Nagavalli Puttunpura village post dist : Chamarajanagar, Karnataka. This
Project Report examines the viability of the proposed Goat Breeding Unit.

WHY GOAT FARMING:

Goat is a multi functional animal and plays a significant role in the economy and nutrition of landless, small and
marginal farmers in the country. Goat rearing is an enterprise which has been practiced by a large section of
population in rural areas. Goats can efficiently survive on available shrubs and trees in adverse harsh
environment in low fertility lands where no other crop can be grown. In pastoral and agricultural subsistence
societies in India, goats are kept as a source of additional income and as an insurance against disaster. Goats are
also used in ceremonial feastings and for the payment of social dues. In addition to this, goat has religious and
ritualistic importance in many societies. The advantages of goat rearing are:

i) The initial investment needed for Goat farming is low.

ii) Due to small body size and docile nature, housing requirements and management problems with goats are
less.

iii) Goats are friendly animals and enjoy being with the people.

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iv) Goats are prolific breeders and achieve sexual maturity at the age of 10-12 months gestation period in goats
is short and at the age of 16-17 months it starts giving milk. Twinning is very common and triplets and
quadruplets are rare.

v) In drought prone areas risk of goat farming is very much less as compared to other livestock species.

vi) Unlike large animals in commercial farm conditions both male and female goats have equal value.

vii) Goats are ideal for mixed species grazing. The animal can thrive well on wide variety of thorny bushes,
weeds, crop residues, agricultural by-products unsuitable for human consumption.

viii) Under proper management, goats can improve and maintain grazing land and reduce bush encroachment
(biological control) without causing harm to the environment.

ix) No religious taboo against goat slaughter and meat consumption prevalent in the country.

x) Slaughter and dressing operation and meat disposal can be carried without much environmental problems.

xi) The goat meat is more lean (low cholesterol) and relatively good for people who prefer low energy diet
especially in summer and sometimes goat meat (chevon) is preferred over mutton because of its "chewability"

xii) Goat milk is easy to digest than cow milk because of small fat globules and is naturally homogenised. Goat
milk is said to play a role in improving appetite and digestive efficiency. Goat milk is non allergic as compared
to cow milk and it has anti-fungal and anti bacterial properties and can be used for treating urogenital diseases of
fungal origin.

xiii) Goats are 2.5 times more economical than sheep on free range grazing under semi arid conditions.

xiv) Goat creates employment to the rural poor besides effectively utilising unpaid family labour. There is ample
scope for establishing cottage industries based on goat meat and milk products and value addition to skin and
fibre.

xv) Goat is termed as walking refrigerator for the storage of milk and can be milked number of times in a day.

SCOPE FOR GOAT REARING AND ITS NATIONAL IMPORTANCE:

 The country has 115.278 million goat as per 1992 livestock census has increased to 120.8 million in 1997 and
ranks first in the world. Goat meat production stands at the level of 0.47 million tonnes. The slaughter rate of
goat is at the level of 39.7 % as compared to 31.8% for sheep and 11% for buffaloes respectively. Goat also
produce 2.55 million tonnes of milk and 0.1288 million tonnes of skin as per FAO 189 records 2002 report.
The trend in consumption of mutton and goat meat shows increase from 467000MT in 1981 to 696000 MT in
2002 indicating annual compound growth rate of 1.28 % during 92-02. Sheep and goat meat production has
reached 700400MT during 2002 in India. Ovine meat export has touched 29670 thousand $ during 2000 which
was then reduced to 5635thousand $ during 2001.

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 Goat make a valuable contribution to the livelihood of economically weaker sections of the society. Amongst
the livestock owners goat rearers are the poorest of the lot.
 Realising the importance of goat in the agrarian economy of the country, various developmental activities have
been taken up by Govt. of India. The Central Government had established Central Institute for Research on
Goats at Makhdoom, Farah, Mathura District, Uttar Pradesh. During VIII Plan Period Seven Intensive goat
breeding farms were proposed with the objectives:
i) To produce 1000 stud bucks per year for the distribution among goat rearers
ii) To improve yield of milk and chevon through selective breeding of regular breeds like Jamnapari, Beetal,
Barbari, Jakhrana, Jhalawadi.
iii) Cross breeding of non Pashmina goats with Angora goats to produce Mohair in Jammu and Kashmir,
Himachal Pradesh and Uttar Pradesh.
iv) To conserve germ plasm of regular breeds like Jamnapari, Beetal, Barbari, Black Bengal, Malbari, Sirohi
etc.

MARKET SURVEY:
Chamarajanagar district is located in the southern Karnataka. It is having an area extent of 5,102 sq.km and is
located between the north latitude 11˚ 40' to 12˚ 48' and East longitude 74˚ 52' to 76˚ 07'. It borders the state of
Tamil Nadu and Kerala. Specifically, it borders Mysore district of Karnataka to the west and north, Mandya and
Bangalore districts of Karnataka to the north-east, Dharmapuri district of Tamil Nadu to the east, Salem and
Erode districts of Tamil Nadu to the south-east, Nilgiris district of Tamil Nadu to the south and Wayanad district
of Kerala to the south-west. Chamarajanagar District with a geographical area of 5685 square kms., constitute
2.96 % of the states area. The district with a population of 859431 (1991 census) accounts for 1.97 % of the total
population of the state. About 86 % of district population is living in rural areas as against the state average of 69
%. SC/ST population accounts for 28 % of total population in the district. The density of population is 193 per
sq. km as against the state average of 235. Nearly 65 % of total working population is dependent on agriculture,
either as cultivators or as agriculture labourers. The literacy level in the district is 38 % which is lower than the
state average of 56%.

ECONOMIC SNAPSHOT
Chamrajnagar's total GDP stands at INR 29.69 billion, contributing 1% to state GSDP. It's per capita annual
income in the district being INR. 40, 275. However, the GDDP trend has been growing at 4% CAGR from 2007-
8 to 2012-13; with the agriculture and allied industries as the highest contributors at 3% with 12.09 billion for
2012-13.

AGRICULTURE IN FOCUS
Chamrajnagar has 32.50% as the net sown land for agriculture, of which 40.02% is used for food grain
cultivation. Its major food crops are Paddy, Maize, Ragi, Jowar, Groundnut, and Pulses alone occupy 33.02%.

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Animal Husbandry (AH) 4.24 Animal Husbandry is one of the important allied activity in the district. Besides,
AH Department, Karnataka Co-operative Milk Producers' Federation Ltd., Karnataka Cooperative Poultry
Federation, Karnataka Sheep and Sheep Products Development Board are actively involved in the
development of AH sector. The activities undertaken by the Department broadly cover treatment and control of
diseases of livestock, Poultry, Calf rearing, infertility camps, fodder development and conservation of feed and
fodder. 4.25 The infrastructure facilities available for providing animal health care services in the district is
presented in the Table - 4.6 below : Table - 4.6 : Infrastructure Facilities Available for Animal Health Sl. No.
Institutions Number 1. Veterinary Hospitals 4 2. Veterinary Dispensaries 16 3. Veterinary Sub - Centres 38 4.
Artificial Insemination Centres 12 5. Integrated Cattle Development Programme Centres 16 6. Veterinary
Mobile Vans 4 4.26 During 1997/98 and 1998/99, an allocation of Rs.3.82 and Rs.4.13 lakhs respectively was
made by the Govt. of Karnataka to ZP for development of infrastructure for the establishment of rural veterinary
dispensaries, polyclinics, veterinary hospitals, supply of equipments for artificial insemination, organisation of
sterile / infertile livestock camps, etc. The following Table - 4.7 gives the relevant information : Table - 4.7 :
Financial Progress of Animal Husbandry (AH) Activities Amount Sanctioned (Rs. in Lakhs) Amount Spent (Rs.
in Lakhs) 1997 /98 3.82 3.42 1998/99 4.13 3.81 1999 /2000 4.50 (Allocation for development of AH activities)
The consumption of mutton was 18.6kg per person in 2002, almost doubled in last decade. Even though people
prefer to consume more mutton, due to shortage of supply and high prices, mutton has become a high value
commodity that is consumed only during festivals or by the select few who can afford to pay for it.

ADVANTAGES OF GOAT REARING:

 The initial investment needed for Goat farming is low.
 Due to small body size and docile nature, housing requirements and management problems with goats are
less.
 Goats are friendly animals and enjoy being with the people.
 Goats are prolific breeders and achieve sexual maturity at the age of 10-12 months gestation period in goats
is short and at the age of 16-17 months it starts giving milk. Twinning is very common and triplets and
quadruplets are rare.
 In drought prone areas risk of goat farming is very much less as compared to other livestock species.
 Unlike large animals in commercial farm conditions both male and female goats have equal value.
 Goat milk is easy to digest than cow milk because of small fat globules and is naturally homogenised. Goat
milk is said to play a role in improving appetite and digestive efficiency.

Goat creates employment to the rural poor. There is ample scope for establishing cottage industries based on goat
meat and milk products and value addition to skin and fibre.

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SWOT ANALYSIS:
As part of the feasibility study, during the initial training period we conducted a detailed analysis of current
strength, opportunity, issues and challenges and found following information

Strength Weakness
 The farmers show greater inclination to take up  The farmers are not aware of the fodder crops
goat farming if showcased as financially viable to be grown for the goats
model with sufficient technical and veterinary  They are also not aware of the concentrate/
support supplements to be given to the animals and the
 There is sufficient local material available that can importance of it.
be used to construct sheds, setup small scale goat  No medical assistance with respect to the
farm in each community/village/region. regular vaccinations and the disease prevention
 The required green fodder like Maize, Napier, schedule.
papaya, coconut can be grown in sufficient  Treatment of sick animals is not done on time
quantity that is required for a goat farm. because of the non-availability of the
 The required veterinary medicine and concentrate medicines
supplement is available across the border in India  The shed are unhygienic and less/no
for very cheap price. ventilation is maintained. This is one of the
 Government has taken lot of interest in agriculture main causes for the mortality among kids
and is willing to support establishment of model  Country breeds from India are been imported
breeding unit that can serve as “Centre of which is not productive in terms of weaning
Excellence in Goat Farming” for all interested weight and fattening cycle
groups.  The feeding cycle followed is non productive
 Nearly 150 ton of maize grain is grown each year, because of the intervals between each meal
i.e. 300-500 ton of green fodder. This can be  The feed supplied is of very low nutrition and
stored for years in silage format, and can support unhygienic, the kitchen waste served to the
breeding of 500-800 goats goat is spoilt and exhibits a foul smell and
goats will not consume because of the same.
Opportunity Threat
 Increasing demand among domestic consumers  Natural calamity
during festive season and otherwise to consume  Lack of availability of medicines and required
goat meat. veterinary aid
 High price of mutton making project strongly  Improper farm management
viable as compared to other initiatives.

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 Interest among the domestic consumers to
consume goat meat if made affordable.
 Large market to serve

ENVIRONMENT ANALYSIS:
Nagavalli, Chamarajanagar is located at latitude 11.9379405 & longitude 77.0268631 and experiences normal
climate. The mean maximum temperature in the district is 34°C. and the mean minimum temperature
is 16.4°C. during January month. Relative humidity ranges from 69 to 85% in the morning and in the evening it
ranges from 21% to 70%. The wind speed ranges from 8.4 to 14.1 kmph. With plentiful of sunshine, stable
weather conditions throughout the year and good amount to rains, the normal weather of Nagavalli,
Chamarajanagar is ideal for goat farming. If sufficient measures are taken to ensure that required green fodder is
cultivated during suitable rainy seasons and stored in the form of silage, goat farm can be setup without any
issues.
Maize, Jower, Ragi grains are grown across the year. This can be stored for years in silage format, and can
support breeding of 500 goats. If combined with perennial fodder like Napier (similar to maize but multi cutting
fodder), including of papaya trunk and other locally available fodder and kitchen waste, sustainable number of
goat livestock can be created in Nagavalli, Chamarajanagar that can easily cater to the entire demand of current
mutton requirement of the District and State, thus reducing the import burden.

ESSENTIAL REQUIREMENTS FOR GOAT FORMING:

Land and Building:
The proposed Goat Rearing Farm has 2.9 acre of land. Total animal shed measuring required is 1500 Sq.Ft.
Quarter for workers, Silage Tanks with capacity of 12 Tons and Godown for dry fodder is also planned along
with the shed and addition room constructed for fodder cutting. The construction of animal shed does not involve
many technicalities and hence can be completed within the planned period by employing suitable masons /
laborers.

Availability of Breeders (adult Ewes) / Rams:

The required number of Breeders and Rams will be imported once the project is setup and ready to become
operational. The high quality Sirohi and Barbari and other well known breeds will be imported.

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Water and Electricity:
The proposed location has two bore well with throughput of minimum 2500 litres/hr. We have built suitable tank
of atleast 10,000 litre capacity to avoid power cut and bore maintenance /breakdown issues.

Veterinary Aid / Facilities:

We will deploy experienced animal husbandry person as supervisor who can take care of all diseases in house
without the need of veterinary person. All medicines will be stocked atleast for two months in order to avoid
logistic and supply issues.

Availability animal feed / Green and Dry Fodder:

We have the required land bank as outlined earlier, we have well set to fill the silage tanks numbering 3 with 30
ton capacity and secure the food issues atleast for 6 months. The required concentrate supplement would be
stocked 3 months advance.

Availability of Labour:
The unit requires two labors and one supervisor to take care of the animals. The number of labors would be
increased subsequent years as we increase the unit size. The wage cost and inflation has been factored into the
financials.

Housing Management:
 Constructed shed on dry and proper ground
 Shed having 10Ft high, with good ventilation
 Bucks are housed in Individual pens
 Does are housed in groups up to 60 per pen
 Proper Disposal of dung and urine

Feeding Management:
 Cultivated fodder from own farm and from surrounding farms
 2/3rd of the energy are met through roughages, were half of the roughages is leguminous green fodders and rest
half are grasses/tender tree leaves
 Kids upto the age of 5 days are fed in colostrums, later on they are shifted to Kid starter rations
 Green leguminous fodders are offered adlib to kids from 15days onwards

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 Salt and water are provided to kids all the times
 Additional concentration provided in breeding season of bucks and does

Care of Goats during pregnancy:

At the advance stage of pregnancy the does are transferred to either kidding pens or separate earmarked space
for kidding within the main shed after thoroughly disinfecting it. After kidding, the does are provided with warm
bran mash for two days.

Care of Goats during pregnancy:

 Kids are protected from extreme weather conditions, particularly during the first two months
 Kids are Dehorned during first two weeks of age
 Male kids are castrated for better quality meat production
 Kids are Vaccinated as per the schedule

Health Care Management:

 Clean and uncontaminated feed and water for minimizing the health disorders
 Strictly followed by recommended vaccine schedule as given in Vaccination Program
 Animals dewormed regularly
 The faces of adult animals to detect eggs of internal parasites and treat the animals with suitable drugs
 Sick animals are segregated from healthy one and are provided with necessary medicine

Training Facilities:

Experience of Farmer and the type of assistance from State Government:

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NON-RECURRING INVESTMENT FOR GOATS

(i) GOAT PURCHASE COST:

Kg.s Rs./Per Kg.
20 X 350 = 7,000 (Per Does Cost)
25 X 350 = 8,750 (Per Buck Cost)

Investment for 1 Unit i.e., 100 Does + 25 Bucks

Total Cost of 100 Does :: 100 X 7,000 = 7,00,000

Total Cost of 8 Bucks :: 8 X 8,750 = 70,000
Total Cost of 1 Unit 7,70,000

Note:
- Live weight cost for Does/Buck is Rs. 350/-
- Min. weight cost for Does is 20 Kg.
- Min. weight cost for Buck is 25 Kg.
- 1 Unit is 100 Does + 8 Bucks

(ii) HOUSING FOR GOATS:

100 x 10
For 100 Does = = 1000 Sft.
ft.
8 x 20
For 8 Bucks = = 160 Sft.
ft.
180 x 4
For 800 Kids = = 720 Sft.
ft.
TOTAL 1880 Sft.

2,06,80
.: Cost of Construction for 1880 Sft.
0

Note:
- 1 Does = 10 Sft.
- 1 Buck = 20 Sft.

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- 1 Kid = 4 Sft.
- 1 Sft. Construction cost = Rs. 110/-

(iii) INFRASTRUCTURE COST / CHAP CUTTER ROOM

A size requirement is 20 x 30 = 600 Sft.

Total Cost of Room is 600 Sft x 90 = 54,000/-

(iv) OTHER INSTRUMENTS

10,80
Equipment for Feeding-ghemale and Other = 0
20,00
Cost of Chaff Cutter = 0
15,00
Cost of Grass Cutter = 0
5,00
Cost of Rope and Chains = 0
10,00
Cost of Water Storage and Distribution = 0
60,00
Cost of Contingencies = 0
TOTAL = 1,20,800

RECURRING EXPENDITURE FOR GOATS

(i) Water, Electricity and other Misc. Expenses:

For 1 Unit (i.e., 100 Does and 8 Bucks) is 108 x 80 = 8,640/-

Note:
- Water, Electricity and other Misc Expenses not computed for Kids
as it is 1st year of Breeding.

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(ii) Fodder Cultivation Cost:

Per Season for 1 Acre = 20,000

For 3 Seasons x 20,000/- for 3 Acres = 1,80,000

(iii) Supplementary Feed Cost:

10 6.7
For 100 Does for 12 Months = 12 x 0 x 11 x 5 = 89,100

For 8 Bucks for 12 Months = 12 x 8 x 11 x 7.5 = 7920

97,020

18 3.7
For 180 Kids for 12 Months = 12 x 0 x 11 x 5 = 89100

Total 1 Unit Feed Cost 1,86,120

Note:
- Does = 6.75 Kg./Month
- Buck = 7.50 Kg./Month
- Kid = 3.75 Kg./Month
- Cost of Feed / Kg. is Rs. 11/-
- Cost of Feed for Kids will be Zero

(iv) Insurance:
30,80
4% of Purchase cost of Goats (i.e., Rs. 7,70,000/-) = 0

Note:
- Insurance not computed for Kids as it is 1st year of Breeding.

(v) Medical and VET Charges:

Per Goat = Rs. 30/-
For 1 Unit = 108 x 30 = 3,240

Note:
- Medical and VET Charges not computed for Kids
as it is 1st year of Breeding.

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(vi) Labour Wages:

For 1 Labours Rs. 6,000 x 12 x 1 = 72,000
For 1 Supervisor Rs. 10,000 x 12 x 1 = 120,000

TOTAL 1,92,000
Note:
- Per head for Labour is Rs. 6,000/-
- Per head for Supervisor is Rs. 10,000/-

TOTAL PROJECT COST

CAPITAL EXPENDITURE REVENUE EXPENDITURE

1 Goat purchase cost for 1 Unit 11,20,000 Water and Electricity 12,640
2 Housing for Goats for 1 Unit 2,61,800 Fodder Cultivation 80,000
3 Room 54,000 Supplementry Feed 1,41,570
4 Instruments and Others 1,20,800 Insurance 44,800
Medical and VET 4,740
Labour and Salary 1,92,000
Misc Expenses 25,000
15,56,600 5,00,750
Grand Total 20,57,350
Margin 19% Money @ rate of Total Cost 4,00,000
MEANS OF FINANCE
Bank Loan @ 81% of Total Cost 16,57,350

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TECHNO-ECONOMIC PARAMETERS

No. of Bucks 8
No. of Does 150
A PRODUCTION TRAITS:
i Age of Maturity (Months) 10-12
ii Kidding Interval (Months) 8
iii Kidding Percentage 80%
iv Twinning Percentage 60%
v No. of Kidding Per year 1.5
vi Sex Ratio 1:1
vii Mortality (%) Adults 5%
Kids 20%
viii Saleable age of Kids (Months) 09-11
ix Payback period: 6 years including moratorium for the 1st year
B EXPENDITURE NORMS:
i Space Requirement (Sft. Per head)
Buck 20 Sft.
Doe 10 Sft.
Kid 4 Sft.
ii Cost of Construction ( Rs. / Sft.) Rs. 110/-
iii Cost of Equipment (Rs. / Adult Animal) Rs. 300/-
iv a) Cost of Green Fodder Cultivation (Rs. Acre/Season) Rs. 20,000/-
b) No. of Acres 8
v Concentrated Feed:
Adult does one month before and after kidding i.e., Per Kidding 6.75 Kg Per Month
i.e., Buck (two months per breading season) 7.50 Kg Per Month
Kids for (30 Days) 3.75 Kg Per Month
vi Cost of Feed Rs. 11/-
vii Labour (No's) 3
Labour Cost Per Month (Rs. 6,000 x 2 + Rs.8,000 x 1) Rs 264,000/-
viii Insurance (as percentage of the Cost of breading stock) 4%
ix Veterinary aid (Rs. / Adult / Year) Rs. 30/-
x Water, Electricity and Other Misc. Expenses (Rs. Adult) Rs. 80/-
C INCOME NORMS:
i Sale price of Adult Does (Rs. / Doe) 7,200/-
ii Sale price of Adult Buck (Rs. / Buck) 7,200/-
iii Income from manure is not assumed as it is used on own form
iv Sale of Gunny bags ( Rs. / Bag) Rs. 20 Per Bag
D REPAYMENT NORMS:
i Repayment Period (years, Incl grace period) 5
ii Grace Period (years) 1
iii Interest (%) 14%

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SALES PROJECTIONS CHART

SI NO PARTICULARS YEARS
  YEARS 1 2 3 4 5 6 7 8 9
A Opening Stock
  Adult Bucks 8 8 8 8 8 8 8 8 8
Adult does
  purchased stock 150 150 150 150 150 150 150 150 150
  Male Kids 0 0 32 52 65 73 81 86 87
  Female Kids 0 0 32 52 65 73 81 86 87
                     
B Births During the Year
  Male Kids 0 120 120 120 120 120 120 120 120
  Female Kids 0 120 120 120 120 120 120 120 120
      240 240 240 240 240 240 240 240
C Mortality
  Adult 5% 0 8 8 8 8 8 8 8 8
  Kids 10% 0 43 43 43 43 43 43 43 43
                     
D Sales During the Year
  Bucks 0 63 75 81 87 87 90 93 93
  Does 0 63 75 81 87 87 90 93 93
      126 150 162 174 174 180 186 186
Closing stock at the end
E of the Year
  Adult Bucks 8 8 8 8 8 8 8 8 8
  Adult Does 150 150 150 150 150 150 150 150 150
  Transfered for breeding 0 8 8 8 8 8 8 8 8
  Male Kids 0 32 52 65 73 81 86 87 89
  Female Kids 0 32 52 65 73 81 86 87 89

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PROJECTED PROFIT AND LOSS ACCOUNT

SI NO PARTICULARS 2018 2019 2020 2021 2022 2023

A SALES:
Goats - 9,07,200 11,34,000 12,24,720 14,09,400 14,09,400
Gunny Bags 5,663 9,977 10,975 12,073 13,280 14,608
GROSS INCOME 5,663 9,17,177 11,44,975 12,36,793 14,22,680 14,24,008

B COST OF PRODUCTION
AND OPERATIONS:
1 Cultivated Fodder 80,000 80,000 96,000 1,05,600 1,16,160 1,27,776
2 Supplementary Feed 1,41,570 93,706 1,10,829 1,21,481 1,28,896 1,33,076
3 Water and Electricity 12,640 8,366 9,895 10,846 11,508 11,882
4 Insurance 44,800 29,653 35,072 38,443 40,789 42,112
5 Medical and VET 4,740 3,137 3,711 4,067 4,316 4,456
6 Labour 1,92,000 1,92,000 1,92,000 1,92,000 1,92,000 1,92,000
7 Other Misc Expenses 25,000 16,548 19,571 21,452 22,762 23,500
8 Repairs and Maintanance - 15,790 28,422 34,106 46,044 62,159
5,00,750 4,39,201 4,95,501 5,27,996 5,62,475 5,96,960
C COST OF SALES:
Term Loan Interest - 2,16,979 1,80,162 1,37,847 89,213 33,316

D DEPRECIATION @ 10% 43,660 39,294 40,865 36,778 38,600 34,740

E PROFIT BEFORE TAX (5,38,747) 2,21,704 4,28,448 5,34,171 7,32,391 7,58,992

F TAX @ ** - - - - - -

G PROFIT AFTER TAX (5,38,747) 2,21,704 4,28,448 5,34,171 7,32,391 7,58,992

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PROJECTED BALANCE SHEET

PARTICULARS 2018 2019 2020 2021 2022 2023

A CAPITAL ACCOUNT
Opening Balance - (1,38,747) 82,957 4,11,404 8,45,576 14,77,967
Add: Additions Capital 4,00,000 - - - - -
Net Profit for the year (5,38,747) 2,21,704 4,28,448 5,34,171 7,32,391 7,58,992
Less: Drawings - - 1,00,000 1,00,000 1,00,000 1,00,000
Closing Balance (1,38,747) 82,957 4,11,404 8,45,576 14,77,967 21,36,958

B LIABILITIES
Term Loan 16,57,000 14,10,475 11,27,134 8,01,478 4,27,188 -
Unsecured Loans - - - - -
Sundry Creditors - - - - - -
16,57,000 14,10,475 11,27,134 8,01,478 4,27,188 -

C TOTAL LIABILITIES 15,18,253 14,93,432 15,38,538 16,47,053 19,05,154 21,36,958

D FIXED ASSETS
Gross Block 4,36,600 3,92,940 3,53,646 3,67,781 3,31,003 3,47,403
Add: Additions - - 55,000 - 55,000 -
Less: Depreciation 43,660 39,294 40,865 36,778 38,600 34,740
Net Block 3,92,940 3,53,646 3,67,781 3,31,003 3,47,403 3,12,663

E CURRENT ASSETS
Cash and Bank Balance 5,313 19,786 (49,243) (53,950) 37,751 3,01,296
Other Current Assets - - 1,00,000 2,50,000 4,00,000 4,00,000
Stock (Goats) 11,20,000 11,20,000 11,20,000 11,20,000 11,20,000 11,20,000
Total Currents Assets 11,25,313 11,39,786 11,70,757 13,16,050 15,57,751 18,21,296

F TOTAL ASSETS 15,18,253 14,93,432 15,38,538 16,47,053 19,05,154 21,33,958

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CASH FLOW STATEMENT

SI YEARS
PARTICULARS
NO I II III IV V VI
A SOURCE OF FUNDS
1 Investment:
- Promoter 4,00,000 - - - - -
- Bank Term Loan 16,57,000 - - - - -
Contribution 20,57,000 - - - - -
2 Sale of Animals:
Bucks (Avg 18Kgs) - 4,53,600 5,67,000 6,12,360 7,04,700 7,04,700
Does (Avg 18 Kgs) - 4,53,600 5,67,000 6,12,360 7,04,700 7,04,700
Sale of Gunny Bags 5,663 9,977 10,975 12,073 13,280 14,608
Total Income 5,663 9,17,177 11,44,975 12,36,793 14,22,680 14,24,008

TOTAL (A) 20,62,663 9,17,177 11,44,975 12,36,793 14,22,680 14,24,008

B APPLICATION OF FUNDS
1 Capital Cost:
Goat Purchase Cost 11,20,000 - - - - -
Goat Housing Cost 2,61,800 - - - - -
Room 54,000 - - - - -
Instrument and Others 1,20,800 - 55,000 - 55,000 -
Loan Repayment - 4,63,504 4,63,504 4,63,504 4,63,504 4,63,504
Drawings - - 1,00,000 1,00,000 1,00,000 1,00,000
Other Investments - - 1,00,000 75,000 75,000 -
Investment Cost 15,56,600 4,63,504 7,18,504 6,38,504 6,93,504 5,63,504
2 Recurring Cost:
Water and Electricity 12,640 8,366 9,895 10,846 11,508 11,882
Fodder Cultivation 80,000 80,000 96,000 1,05,600 1,16,160 1,27,776
Supplementary Feed 1,41,570 93,706 1,10,829 1,21,481 1,28,896 1,33,076
Insurance 44,800 29,653 35,072 38,443 40,789 42,112
Medical and VET 4,740 3,137 3,711 4,067 4,316 4,456
Labour 1,92,000 1,92,000 1,92,000 1,92,000 1,92,000 1,92,000
Other Misc Expenses 25,000 16,548 19,571 21,452 22,762 23,500
Repairs and Maintanance - 15,790 28,422 34,106 46,044 62,159
Tax - - - - - -
Variable Cost 5,00,750 4,39,201 4,95,501 5,27,996 5,62,475 5,96,960

TOTAL (B) 20,57,350 9,02,704 12,14,004 11,66,499 12,55,979 11,60,463

C Opening Balance - 5,313 19,786 (49,243) 21,050 1,87,751

D Surplus ( A - B ) 5,313 14,473 (69,029) 70,293 1,66,701 2,63,544
E Closing Balance (C + D) 5,313 19,786 (49,243) 21,050 1,87,751 4,51,296

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FINANCIAL ANALYSIS

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year

Capital Cost 15,56,600 - - - - -

Recurring Cost 5,00,750 4,39,201 4,95,501 5,27,996 5,62,475 5,96,960
Total Cost 20,57,350 4,39,201 4,95,501 5,27,996 5,62,475 5,96,960

Benefit (Sales) 5,663 9,17,177 11,44,975 12,36,793 14,22,680 14,24,008

Add: Depreciation 43,660 39,294 40,865 36,778 38,600 34,740
Closing Stock (Adults & Kids) 11,20,000 - - - - 11,34,000

Less: Tax @ 30.33% - - - - - -

Interest on Term Loan - 2,16,979 1,80,162 1,37,847 89,213 33,316
Total Benefit 11,69,323 7,39,493 10,05,677 11,35,723 13,72,067 25,59,432

Net Benefit (8,88,027) 3,00,292 5,10,177 6,07,728 8,09,592 19,62,472

Discounting Factor @ 14% 1 0.877 0.769 0.675 0.592 0.519

NPV Cost at 14% DF 20,57,350 3,85,179 3,81,040 3,56,397 3,32,985 3,09,822

NPV Benefit at 14% DF 11,69,323 6,48,535 7,73,366 7,66,613 8,12,264 13,28,345

NPW at 14% DF 16,87,771

BCR at 14% DF 1.10 : 1
IRR% 15.10

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TERM LOAN REPAYMENT

OPENING TOTAL CLOSING

YEARS PRINCIPAL INTEREST
BALANCE REPAYMENT BALANCE
1 16,57,000 4,63,504 2,46,525 2,16,979 14,10,475
2 14,10,475 4,63,504 2,83,341 1,80,162 11,27,134
3 11,27,134 4,63,504 3,25,656 1,37,847 8,01,478
4 8,01,478 4,63,504 3,74,290 89,213 4,27,188
5 4,27,188 4,63,504 4,30,188 33,316 (3,000)

DEBT SERVICE COVERAGE RATIO

OPERATING YEARS
SI No
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year

1 Profit after Taxes (5,38,747) 2,21,704 4,28,448 5,34,171 7,32,391 7,58,992

2 Depreciation (WDV) 43,660 39,294 40,865 36,778 38,600 34,740

3 Interest on Bank Borrowings - 2,16,979 1,80,162 1,37,847 89,213 33,316

A = (1) + (2) + (3) (4,95,087) 4,77,977 6,49,474 7,08,797 8,60,205 8,27,048

4 Repayment of Loan - 2,46,525 2,83,341 3,25,656 3,74,290 4,30,188

B = (3) + (4) - 4,63,504 4,63,504 4,63,504 4,63,504 4,63,504

Debt Service Coverage Ratio

(A / B) - 1.03 1.40 1.53 1.86 1.78

Average Cumulative D.S.C.R 1.32

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