NEW UPCOMMING DAIRY

STATEMENT OF INSTALLED CAPACITY, ACTUAL PRODUCTION & SALES

ITEM OF PRODUCT: PROCESSING OF MILK & ITS BY PRODUCTS

INSTALLED CAPACITY: NEW UNIT

IN LTR PER DAY 2,000.00

('000 Kg)
Total No. of working Days considered in year is 350 Days
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YEAR 1 2 3 4 5 6 7
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INSTALLED CAPACITY 2.00 2.00 2.00 2.00 2.00 2.00 2.00

CAPACITY UTILISATION 30 40 50 60 70 70 70
(%)

PRODUCTIONS
Rusk/Bread 500 0.53 0.70 0.88 1.05 1.23 1.23 1.23

Cookies 500 0.53 0.70 0.88 1.05 1.23 1.23 1.23

Buns/puff 300 0.32 0.42 0.53 0.63 0.74 0.74 0.74

Sp Cake 300 0.32 0.42 0.53 0.63 0.74 0.74 0.74

Cup Cake 200 0.21 0.28 0.35 0.42 0.49 0.49 0.49

Puff 200 0.21 0.28 0.35 0.42 0.49 0.49 0.49

Raw Material Required

Raw Material @ Rs. 40.00/- 84.00 112.00 140.00 168.00 196.00 196.00 196.00

Direct Processing Cost

Rusk/Bread 12.00 6.30 8.40 10.50 12.60 14.70 14.70 14.70

Cookies 12.00 6.30 8.40 10.50 12.60 14.70 14.70 14.70

Buns 15.00 4.73 6.30 7.88 9.45 11.03 11.03 11.03

Sp Cake 80.00 25.20 33.60 42.00 50.40 58.80 58.80 58.80

Cup Cake 60.00 12.60 16.80 21.00 25.20 29.40 29.40 29.40

Puff 20.00 4.20 5.60 7.00 8.40 9.80 9.80 9.80

Total Processing Cost 59.33 79.10 98.88 118.65 138.43 138.43 138.43
Cost of Production 143.33 191.10 238.88 286.65 334.43 334.43 334.43

FINISHED GOODS(FG)
SALES
Rusk/Bread 80.00 42.00 56.00 70.00 84.00 98.00 98.00 98.00

Cookies 90.00 47.25 63.00 78.75 94.50 110.25 110.25 110.25

Buns 90.00 28.35 37.80 47.25 56.70 66.15 66.15 66.15

Sp Cake 210.00 66.15 88.20 110.25 132.30 154.35 154.35 154.35

Cup Cake 425.00 89.25 112.00 140.00 168.00 196.00 196.00 196.00

Puff 98.00 20.58 27.44 34.30 41.16 48.02 48.02 48.02

Total Sales Realisation 293.58 384.44 480.55 576.66 672.77 672.77 672.77

GROSS MARGIN 150.26 193.34 241.68 290.01 338.35 338.35 338.35

FACTORY OVERHEADS

Labour Charges 20.00 38.00 39.90 41.90 43.99 46.19 48.50

Salaes Promotion exp 18.00 20.00 21.00 22.05 23.15 24.31 25.53

Repairs & Maintenance 2.50 2.63 2.76 2.89 3.04 3.19 3.35

Insurance of Factory 1.00 1.05 1.10 1.16 1.22 1.28 1.34

Depreciation 27.00 35.72 30.44 25.94 22.10 18.84 16.06

Rent, Taxes & other 1.00 1.05 1.10 1.16 1.22 1.28 1.34
misc. Factory Exp.
69.50 98.45 96.30 95.09 94.72 95.08 96.12

GROSS PROFIT 80.76 94.89 145.38 194.92 243.63 243.26 242.23

Gross Profit % 27.51 24.68 30.25 33.80 36.21 36.16 36.00

STATEMENT OF SELLING & ADMINISTRATIVE EXPENSES

SALARIES TO STAFF 4.00 4.40 4.84 5.32 5.86 6.44 7.09

PROMOTER SALARY 2.00 2.20 2.42 2.66 2.93 3.22 3.54

PRINTING & STATIONERY 1.50 1.58 1.65 1.74 1.82 1.91 2.01
OFFICE EXPENSES 1.50 1.58 1.65 1.74 1.82 1.91 2.01

SELLING EXPENSES 5.00 3.27 4.08 4.90 5.72 5.72 5.72

TOTAL 14.00 13.02 14.65 16.36 18.15 19.21 20.37

STATEMENT OF PREOPERATIVE & TRAIL RUN EXPENSES

COST TOTAL
INCURRED
ESTABLISHMENT EXPENSES 22.00 22.00

MISC. EXPENSES 12.84 12.84

MORTGAGE EXPENSES 3.50 3.50

38.34 38.34

COST OF PROJECT AND MEANS OF FINANCE

COST OF PROJECT

DESCRIPTION TOTAL
AMOUNT AMOUNT
LAND 10.00 10.00

BUILDING 105.00 105.00

PLANT & MACHINERY 225.00 225.00

MISC. FIXED ASSETS 15.00 15.00

PREOPERATIVE EXPENSES 10.00 10.00

365.00 365.00

CONTINGENCY 10.00

WORKING CAPITAL MARGIN 20.00

TOTAL COST OF PROJECT 395.00

MEANS OF FINANCE

1. EQUITY CAPITAL
PROMOTERS 98.75 98.75

2. TERM LOAN FROM AXIS BANK 296.25 296.25

395.00 395.00
ALLOCATION OF CONTINGENCY AND PREOPERARTIVE EXPENSES
PROJECT CONTINGENCY PRE.OPER TOTAL
COST EXPENSES AMOUNT

LAND & BUILDING 10 0.40 0.40 10.80

PLANT & MACHINERY 225 9.00 9.00 243.00

MISC. FIXED ASSETS 15 0.60 0.60 16.20

250.00 10.00 10.00 270.00

CALCULATION OF WORKING RESULTS

CAPACITY UTILISATION(%) 30 40 50 60 70 70 70

PRODUCTION (In Ltr & Kgs)

Rusk/Bread 500 0.525 0.700 0.875 1.050 1.225 1.225 1.225

Cookies 500 0.525 0.700 0.875 1.050 1.225 1.225 1.225

Buns 300 0.315 0.420 0.525 0.630 0.735 0.735 0.735

Sp Cake 300 0.315 0.420 0.525 0.630 0.735 0.735 0.735

Cup Cake 200 0.21 0.28 0.35 0.42 0.49 0.49 0.49

Puff 200 0.21 0.28 0.35 0.42 0.49 0.49 0.49

SALES ( Ltrs & Kgs)

GROSS SALES 293.58 384.44 480.55 576.66 672.77 672.77 672.77

293.58 384.44 480.55 576.66 672.77 672.77 672.77

EXPENDITURE
R.M. CONSUMPTION 84.00 112.00 140.00 168.00 196.00 196.00 196.00

DIRECT PROCESSING COST 59.33 79.10 98.88 118.65 138.43 138.43 138.43

FACTORY OVERHEAD 69.50 98.45 96.30 95.09 94.72 95.08 96.12

SUB- TOTAL 212.83 289.55 335.17 381.74 429.14 429.51 430.54

GROSS PROFIT 80.76 94.89 145.38 194.92 243.63 243.26 242.23

G.P. OF SALES 27.51 24.68 30.25 33.80 36.21 36.16 36.00

 STATEMENT OF DEPRECIATION

W.D.V. METHOD ( AS PER INCOME TAX LAW)

1. LAND & BUILDINGS 10.80 9.72 8.26 7.02 5.97 5.07 4.31
LESS: DEPR.ECIATION 1.08 1.46 1.24 1.05 0.90 0.76 0.65
9.72 8.26 7.02 5.97 5.07 4.31 3.67

2. PLANT & MACHINERY 243.00 218.70 185.90 158.01 134.31 114.16 97.04
LESS: DEPR.ECIATION 24.30 32.81 27.88 23.70 20.15 17.12 14.56
218.70 185.90 158.01 134.31 114.16 97.04 82.48

3.MISC. FIXED ASSETS 16.20 14.58 13.12 11.81 10.63 9.57 8.61
LESS: DEPR.ECIATION 1.62 1.46 1.31 1.18 1.06 0.96 0.86
14.58 13.12 11.81 10.63 9.57 8.61 7.75

TOTAL ASSETS 270.00 243.00 207.28 176.84 150.91 128.80 109.96

TOTAL DEPRECIATION 27.00 35.72 30.44 25.94 22.10 18.84 16.06

AS PER I. TAX ACT

PROFITABILITY STATEMENT

GROSS PROFIT 80.76 94.89 145.38 194.92 243.63 243.26 242.23

INTEREST
ON TERM LOAN 17.78 21.90 18.30 14.70 11.10 7.50 3.90
ON WORKING CAPITAL 3.71 4.95 4.95 4.95 4.95 4.95 4.95
21.49 26.85 23.25 19.65 16.05 12.45 8.85

SELLING & ADM. EXPENSES 14.00 13.02 14.65 16.36 18.15 19.21 20.37

TOTAL 35.49 39.87 37.90 36.01 34.20 31.66 29.22

PROFIT BEFORE TAX 45.27 55.03 107.48 158.91 209.43 211.60 213.01

TAXATION 13.99 17.00 33.21 49.10 64.71 65.38 65.82

PROFIT AFTER TAX 31.28 38.02 74.27 109.81 144.72 146.22 147.19

PROFIT BEFORE INTEREST 93.76 117.60 161.16 204.50 247.58 242.89 237.92
DEPRECIATION & TAX
STATEMENT OF INTEREST ON TERM LOAN & WORKING CAPITAL
TERM LOAN I

OPENING BALANCE 296.25 251.25 206.25 161.25 116.25 71.25

ADD: RECEIPTS 296.25 - - - - - -
TOTAL 296.25 296.25 251.25 206.25 161.25 116.25 71.25

LESS: REPAYMENTS 0.00 45.00 45.00 45.00 45.00 45.00 45.00

CLOSING BALANCE 296.25 251.25 206.25 161.25 116.25 71.25 26.25

INTEREST @ 8% 17.78 21.90 18.30 14.70 11.10 7.50 3.90

WORKING CAPITAL FINANCE

OPENING BALANCE 0.00 60.00 60.00 60.00 60.00 60.00 60.00

ADD: RECEIPTS 60.00 0.00 0.00 0.00 0.00 0.00 0.00

CLOSING BALANCE 60.00 60.00 60.00 60.00 60.00 60.00 60.00

INTEREST @ 8.25% 3.71 4.95 4.95 4.95 4.95 4.95 4.95

PROJECTED CASH FLOW STATEMENT

SOURCES
1.INCREASE IN CAPITAL. 98.75 0.00 0.00 0.00 0.00 0.00 0.00

2. INCREASE NEW CAPITAL 40.00 40.00 40.00 40.00 40.00 40.00 40.00

3. INCREASE IN TERM LOAN 296.25 0.00 0.00 0.00 0.00 0.00 71.25

4. INCREASE IN BANK FIN. 60.00 0.00 0.00 0.00 0.00 0.00 0.00

5. PROFIT BEFORE TAX 45.27 55.03 107.48 158.91 209.43 211.60 213.01

6. DEPRECIATION 27.00 35.72 30.44 25.94 22.10 18.84 16.06

567.27 130.75 177.91 224.85 271.53 270.44 340.32
USES
1. INCREASE IN FIX. ASSETS 270.00 0 0.00 0.00 0.00 0.00 0.00

2.REPAYMENT OF T. LOAN 0.00 45.00 45.00 45.00 45.00 45.00 45.00

3. INCOME TAX 13.99 17.00 33.21 49.10 64.71 65.38 65.82

4. INVESTMENT 0.50 1.00 1.00 1.00 1.00 1.00 1.00

6. INCREASE IN W.CAPITAL 25.00 - - - - - -

TOTAL 309.49 63.00 79.21 95.10 110.71 111.38 111.82

OPENING BALANCE 0 257.78 325.52 424.23 553.97 714.79 873.85

NET SURPLUS 257.78 67.74 98.70 129.74 160.82 159.06 228.50

CLOSING BALANCE 257.78 325.52 424.23 553.97 714.79 873.85 1102.35

PROJECTED BALANCE SHEET

LIABILITIES
1. PROMOTERS CAPITAL 98.75 98.75 98.75 98.75 98.75 98.75 98.75

2. BANK TEM LOAN 296.25 251.25 206.25 161.25 116.25 71.25 26.25

3. BANK O.D. 60.00 60.00 60.00 60.00 60.00 60.00 60.00

4. NET PROFIT 31.28 69.30 143.57 253.38 398.09 544.31 691.49

486.28 479.30 508.57 573.38 673.09 774.31 876.49

130.03 168.05 242.32 352.13 496.84 643.06 790.24
ASSETS

FIXED ASSETS 243.00 207.28 176.84 150.91 128.80 109.96 93.90

INVESTMENT 0.50 1.50 2.50 3.50 4.50 5.50 6.50

LOANS & ADVANCES 2.50 2.50 2.50 2.50 2.50 2.50 2.50

CURRENT ASSETS

STOCK IN HAND 23.52 27.88 27.88 27.88 27.88 27.88 27.88

SUNDRY DEBTORS 71.76 114.00 114.00 114.00 114.00 114.00 114.00

CASH & BANK BALANCE 257.78 325.52 424.23 553.97 714.79 873.85 1102.35

599.06 678.68 747.95 852.76 992.47 1133.69 1347.13

RETAINED PROFIT 31.28 38.02 74.27 109.81 144.72 146.22 147.19

DEBT SERVICE COVERAGE RATIO

DEBT

INTEREST ON TERM LOAN 17.78 21.90 18.30 14.70 11.10 7.50 3.90

TERM LOAN REPAYMENT 0.00 45.00 45.00 45.00 45.00 45.00 45.00
 TOTAL 17.78 66.90 63.30 59.70 56.10 52.50 48.90

SERVICE

PROFIT AFTER TAX 31.28 38.02 74.27 109.81 144.72 146.22 147.19

INTEREST 17.78 21.90 18.30 14.70 11.10 7.50 3.90

DEPRECIATION 27.00 35.72 30.44 25.94 22.10 18.84 16.06

76.05 95.64 123.00 150.44 177.92 172.56 167.15

D. S. C. R. 4.28 1.43 1.94 2.52 3.17 3.29 3.42

5 YEAR AVERAGE D. S. C. R. 2.67

BREAK EVEN POINT CALCULATION (RS. IN LACS)

SALES 293.58 384.44 480.55 576.66 672.77 672.77 672.77
LESS: VARIABLE EXPENSES
R.M. CONSUMED 84.00 112.00 140.00 168.00 196.00 196.00 196.00

DIRECT PROCESSING COST 59.33 79.10 98.88 118.65 138.43 138.43 138.43

FACTORY OVERHEAD 20.00 38.00 39.90 41.90 43.99 46.19 48.50

INTEREST ON W. CAPITAL 3.71 4.95 4.95 4.95 4.95 4.95 4.95

SELLING EXPENSES 5.00 3.27 4.08 4.90 5.72 5.72 5.72

172.04 237.32 287.81 338.40 389.08 391.28 393.59

172.04 237.32 287.81 338.40 389.08 391.28 393.59

CONTRIBUTION 121.54 147.12 192.74 238.26 283.69 281.49 279.18

P/V RATIO 0.41 0.38 0.40 0.41 0.42 0.42 0.41

FIXED EXPENSES
SALARIES & WAGES 6.00 6.60 7.26 7.99 8.78 9.66 10.63

REPAIRS & MAINTENANCE 2.50 2.63 2.76 2.89 3.04 3.19 3.35

OTHER MFG. EXPENSES 20.00 22.10 23.21 24.37 25.58 26.86 28.21

DEPRECIATION 27.00 35.72 30.44 25.94 22.10 18.84 16.06

INTEREST ON TERM LOAN 17.78 21.90 18.30 14.70 11.10 7.50 3.90

TOTAL 73.28 88.95 81.96 75.88 70.61 66.06 62.15

BREAK EVEN SALES 176.99 232.42 204.34 183.65 167.46 157.88 149.77

AS A % OF SALES 60.29 60.46 42.52 31.85 24.89 23.47 22.26

CASH BREAK EVEN SALES 111.78 139.08 128.46 120.88 115.04 112.85 111.06

AS A % OF SALES 38.07 36.18 26.73 20.96 17.10 16.77 16.51

PROJECTED SOURCES & APPLICATION

SOURCES

PROFIT BEFORE TAX 45.27 55.03 107.48 158.91 209.43 211.60 213.01

DEPRECIATION 27.00 35.72 30.44 25.94 22.10 18.84 16.06

INCREASE OF S. CAPITAL 98.75 0.00 0.00 0.00 0.00 0.00 0.00

INCREASE OF NEW CAPITAL 40.00 40.00 40.00 40.00 40.00 40.00 40.00

INCREASE OF BANK LOAN 296.25 0.00 0.00 0.00 0.00 0.00 71.25

INCREASE IN BANK O.D. 60.00 0.00 0.00 0.00 0.00 0.00 0.00

567.27 130.75 177.91 224.85 271.53 270.44 340.32

APPLICATION

INCREASE OF F. ASSETS 270.00 0.00 0.00 0.00 0.00 0.00 0.00

REPAYMENT OF T. LOAN 0.00 45.00 45.00 45.00 45.00 45.00 45.00

DEPOSIT PAID FOR GALA 2.50 0 0 0 0 0 0

INCOME TAX 13.99 17.00 33.21 49.10 64.71 65.38 65.82

INVESTMENTS 0.50 1.00 1.00 1.00 1.00 1.00 1.00

CHANGE IN W. CAPITAL 281.30 72.10 98.70 129.74 160.82 159.06 228.50

568.29 135.11 177.91 224.85 271.53 270.44 340.32

FUTURE PROSPECTS AND PROFITABILITY

The Statement of projected profitability, cash flow and Assets and Liabilities are furnished. The assumption
underlying the projection profitability are furnished based on the current input cost.

The Key Financial indicators are as under:- (Rs. In Lacs)

Year I II III IV V VI VII

PRODUCTION
Rusk/Bread 250 0.53 0.70 0.88 1.05 1.23 1.23 1.23

Cookies 250 0.53 0.7 0.875 1.05 1.225 1.225 1.225

Buns 150 0.32 0.42 0.525 0.63 0.735 0.735 0.735

Sp Cake 150 0.32 0.42 0.525 0.63 0.735 0.735 0.735

Cup Cake 100 0.21 0.28 0.35 0.42 0.49 0.49 0.49

Puff 100 0.21 0.28 0.35 0.42 0.49 0.49 0.49

NET INCOME

SALES 293.58 384.44 480.55 576.66 672.77 672.77 672.77

PBIDT 93.76 117.60 161.16 204.50 247.58 242.89 237.92

% OF NET SALES 31.94 30.59 33.54 35.46 36.80 36.10 35.36

PBT 45.27 55.03 107.48 158.91 209.43 211.60 213.01

% OF NET SALES 15.42 14.31 22.37 27.56 31.13 31.45 31.66

PAT 31.28 38.02 74.27 109.81 144.72 146.22 147.19

% OF NET SALES 10.65 9.89 15.45 19.04 21.51 21.73 21.88

D. S. C. R. 4.28 1.43 1.94 2.52 3.17 3.29 3.42

DEBTS EQUITY RATIO 2.28 1.50 0.85 0.46 0.23 0.11 0.03
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