MODEL DPR

ESTABLISHMENT OF
MUSTARD OIL
PROCESSING UNIT
(WITH CAPITAL
SUBSIDY)

Under Agriculture Infrastructure Fund Scheme

Submitted by
Submitted to

Knowledge Partner
NABARD Consultancy Services
Corporate Office: 24 Rajendra Place,
Department of Agriculture, 7th Floor, NABARD Building, New Delhi
Cooperation & Farmers Welfare Registered Office: Plot No. C-24, G Block,
3rd Floor, NABARD Building, Bandra Kurla Complex,
Bandra East, Mumbai
 Model DPR for Establishment of Mustard Oil Processing Unit (with Capital Subsidy)

DISCLAIMER

This document has been prepared by NABARD Consultancy Services (NABCONS)

Private Ltd for Department of Agriculture, Cooperation & Farmers Welfare as a
professional Consultancy agency.

The views expressed and the conclusions arrived at in this document, including
financial, are based on the data and information provided by various Government
Departments and agencies, overall policy and approach of the State Government,
discussions with the stakeholders at various levels as also the observations recorded
by NABCONS during the study. Being only advisory in nature, such views and
conclusions do not represent or reflect, in any way, the policy or views of NABARD.

NABCONS / NABARD accept no liability, financial or otherwise, or any deemed

financial commitment whatsoever on any view, observation or conclusion expressed
herein.
 Model DPR for Establishment of Mustard Oil Processing Unit (with Capital Subsidy)

CREDIT CITATION

Preparation of this document has been possible with broad-based support and co-
operation from various stakeholders. NABARD Consultancy Services hereby,
sincerely and gratefully acknowledges the support and valuable co-operation
extended by them.

Our sincere thanks are also due to all others who directly or indirectly helped
NABCONS in preparation of this document.

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 Model DPR for Establishment of Mustard Oil Processing Unit (with Capital Subsidy)

DPR Template for projects under Agriculture

Infrastructure Fund1
To be filled by the applicant
1. Details of the Applicant
SN Particulars Details
i. Name of the Applicant
Constitution Legal Status of Applicant :
ii. (i.e. Govt. organization, NGO, Co-operative society,
Company, partnership firm, proprietorship firm,
Individual, FPO, Self Help Group, etc.)
iii. Registration No. of Applicant/CIN
iv. GST No. of Applicant
v. Date of Establishment/ Incorporation
vi. Address of the registered office
vii. PAN No. of Applicant
viii. Address of the proposed site
ix. District
x. State
xi. Pin Code
Whether lead promoter belong to SC/ ST/
xii.
Woman/Minority

*Details of associates/ allied firms, if any may also be provided.

2. Contact details of the Applicant/Promoter(s)/Partner(s)/Directors(s)/ Members

including addresses, telephone, mobile, fax, e-mail, website, PAN etc.
SN Name of Aplicant/ Address Telephone Mobile E-mail Id Any other
Promoter(s)/ Partner(s)/ No. No. details
Director(s)/ Members

1
To be filled by the applicant

1
This template is prepared keeping in mind the essential information required by the lending institutions to process the
loan application. Different formats of table/description can be used for preparation of the DPR but all the required
information in template should be included in the DPR.

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 Model DPR for Establishment of Mustard Oil Processing Unit (with Capital Subsidy)

3. Details of the Promoter(s)/Partner(s)/Directors(s)/ Members

S Name of Aadhaar PAN Academic Net DIN Credit Date of Partner
N Promoter(s)/ No. No. and Worth No. Rating Share profit
Partner(s)/ technical holding sharing
Director(s)/ Qualificati ratio
Members on

1
To be filled by the applicant

4. Relative experience of the Applicant/Promoter(s)/Partner(s)/Directors(s)/

Members
SN Name of lead Detail of Details of Supporting Document
Applicant/Promoter(s)/Partner(s)/ Experience Turnover attached, if any (Yes/No)
Members of Applicant Entity (year-wise)

1
To be filled by the applicant

5. Details of Existing Banking and Credit facilities of the Applicant/ Promoter(s)/

Partner(s)/ Directors(s)
S Types Name of Limits Outstandi Securities Rate of Repayment Purpose
N of Bank and ng as on interest terms
Facility Branch dd/mm/yyy
y

Cash
1
Credit

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 Model DPR for Establishment of Mustard Oil Processing Unit (with Capital Subsidy)

Term
2 To be filled by the applicant
Loan

3 Others

*Information pertaining to credit rating (internal /external) may also be shared along with the
aforementioned information

6. Details of GST Returns submitted, if any or status of registration - The Entity is

actively registered under the GST and actively filling its return.

7. Project Details
a. O
b
j
Primary Processing plant of Mustard oil.
e
c
tive of the proposed project:

b. Category of proposed infrastructure as per the Scheme:

SN Component Mark Tick (✓)

1 Supply chain
2 Warehouses
3 Silos
4 Pack Houses
5 Assaying Unit
6 Sorting & Grading unit
7 Cold Chain
8 Logistics facilities
9 Primary Processing Centres
10 Ripening Chambers
11 Organic input production
12 Bio stimulant production unit
13 Infrastructure for Smart and precision agriculture
Projects identified for providing supply chain
14
infrastructure for clusters of crops includingexport clusters.
15 Projects promoted by Central/State/Local Governments or their

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 Model DPR for Establishment of Mustard Oil Processing Unit (with Capital Subsidy)

agencies under PPP for

building community farming assets or post-harvestmanagement
projects.
Any other (please Specify) MUSTARD OIL
16
PROCESSING UNIT

c. Type of Operating Model (Rental, PPP, captive, Lease, Franchise etc.) and details

To be filled by the applicant

8. Land Details:
Particulars Details
SN

1 Land Area
2 Status of Legal title & Possession
3 if leased, Period of lease
4 Coordinates of location
5 Details of CLU
Connectivity to roads
6 I. State Highway (in Km.)
II. National Highway (in Km.)
7 Availability of Water
8 Availability of Power

9. Proposed facilities:
I. Details of proposed facility

Type of facilities proposed to be Total Capacity No. of Days of

SN No. of Units
created [MT, Ltrs, MT/Hr. operation
1 Warehouse
2 Silos
3 Pack-house
4 CA Store
5 Cold store
6 Frozen store
7 Pre-cooling Chambers
Assaying, Sorting, Grading, Waxing,
8 Weighing, Packing facility [Modify as
peractual]
9 Ripening Chambers
10 IQF

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 Model DPR for Establishment of Mustard Oil Processing Unit (with Capital Subsidy)

11 Blast Freezing
12 Refrigerated Vehicles/ Reefer vans
13 Mobile Pre-coolers
Insulated/ non-insulated distribution
14
vehicle
15 Irradiation Facility
16 Organic input production
17 Bio Stimulant production units
20 MT per day,
18 Others (Specify) MUSTARD OIL 250 days
PRODUCTION

II. Details of technologies to be used/ alternative technologies

III. Flow chart of activity process

10. Detailed timeline for construction of proposed project and proposed date for
commencement of operation
a) Date of disbursement of 1st instalment of term loan
b) Date of start of construction of building
c) Date of completion of building
d) Date of placing order for plant & machinery
e) Date of installation/erection of P&M
f) Date of sanction of electricity connection (LT/HT)
g) Date of release of electricity connection (LT/HT)
h) Date of trial production/running
i) Date of commencement of production/running

11. Proposed Project Financials

a. Estimated Project cost details
SN Items Amount (₹)
1 Site Development 16,00,000
2 Civil Works
3 Technical Civil Works/Errection etc.
4 Plant & Machinery (P&M) 46,00,000
Fixed cost on power supply connection or/ and Generator
5
set/solar system etc.
6 Common Utilities like Water/ETP/ STP, etc.

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 Model DPR for Establishment of Mustard Oil Processing Unit (with Capital Subsidy)

7 Pre-operative Expenses
8 Interest During Construction
9 Contingencies
10 Working Capital 20,00,000
Total Project Cost 82,00,000

b. Means of finance

SN Items Amount (₹ in lakhs)

1 *Promoter’s Equity 8.20

Capital Subsidy/ Benefit from other

2
Central/ State Scheme
Loan (TL + CC) (including back end 73.80 (including back end capital subsidy)
capital subsidy @ 25% maximum Rs
3
12.5 lakhs, in instant case Rs. 12.5
lakhs)
Total 82.00

*The source of the owned funds and also the capacity of the promoter to support the project in the
event of cost escalations due to time overruns should also be mentioned

c. Basic Revenue Projections (₹ in lakh)

SN Item Year Year Year Year Year
2021-22 2022-23 2023-24 2024-25 2025-26
1 Turnover 2893.28 3254.93 3471.93 3688.93 3984.83

2 Cost of Operations 2877.87 3219.51 3430.67 3642.18 3923.71

3 Gross Profit 15.40 35.42 41.26 46.75 61.12

Earnings Before Interest,
4 Tax, Depreciation and
Amortization (EBITDA) 15.40 35.42 41.26 46.75 61.12

5 Profit before taxation 1.705 23.324 30.682 37.546 53.166

6 Profit after taxation 1.193 16.327 21.477 26.282 37.216

*CMA data to be provided along with projected balance sheet, profit & loss statements, covering
entire period of repayment.

d. Financial Parameters
SN Particulars Details (Ratio/%) Ref Page No. in DPR*
Internal Rate of Return (IRR) [(a) With and (b)
1 89.92% -
without grant/ subsidy]

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 Model DPR for Establishment of Mustard Oil Processing Unit (with Capital Subsidy)

2 Avg. Debt Service Coverage Ratio (DSCR) 1.25 -

3 Break Even Point (BEP) 32.13% -
4 Debt-Equity Ratio ( TTL/TNW) 1.72 -
5 Fixed Assets Coverage Ratio 0.57 -

e. Credit Facilities proposed

I. Fund Based
a) Term Loan 53.80 lakhs
b) Working Capital 20.00 lakhs
(Attach Assessment of working capital, if proposed)
II. Non Fund Based

f. Collateral Security proposed to be offered and its approximate value for the applicable
cases. (To be furnished only in case of loans above Rs.2 crore)

g. Repayment Schedule (Including moratorium period):

h. Details of Statutory/other approvals/registrations (status):

12. Availability of Raw Materials in the Catchment Area - provide details such as
Adequate Volume, Wider Mix of Raw Materials, Days of Operation in a Year along
with supporting data. Based on this information feasibility/viability of the
project should be justified.

Raw Material Availability: Xyz is famous for it’s indigenous rapeseed produce. So, there
will be abundance and quite good quality of produce will be available for further
processing.

Availability of utilities (Water/Electricity etc.):

Electricity: Yes, Electricity Connection is available at location for electricity consumption.

Water: Facility has fresh water through Water Dept. facility.

Cleaning: The Company is dedicated to follow the best-in-class cleanliness policies. To

ensure excellent hygiene, the garbage will be disposed of at a suitable place on a daily
basis. Garbage will not be allowed to be stored in the premise.

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 Model DPR for Establishment of Mustard Oil Processing Unit (with Capital Subsidy)

Labor/Staff : The Plant will require 3 skilled and 4 unskilled labor for plant, 1accountant
& 1 guard. The required labor (skilled/ unskilled) and staff are easily available
considering the market.

13. Details of the catchment area of the project

Name Quantitiesto be
Location of the Catchment Commoditiesto sourced [MT ]
S.N Village/Dist/
(Primary/Secondary) be sourced
APMC ( per annum)
1 ABC
2 XYZ

*DPR should comprised of detailed chapter on proposed catchment (production and supply
statistics).

14. Details of existing demand of the product and marketing arrangements (including
e-trading), possibility of for leasing with FCI/CWC/SWC/e-commerce players /
retailers for assured cash flows if any.

15. Employment Generation projections

a. Direct Employment: (Skilled and Semi-skilled)…………9………
b. Contractual Employment with no. of days: ……………..

c. Indirect Employment (specify):

16. Details of renewable/ alternate energy sources including solar energy, if any,
proposed to be used for operating the project including inter alia, details of power
generation.

17. Details of pollution issues (if any) and adoption of modern technology for reducing
the carbon footprints and increasing operational efficiency:-

Basic cost How the technology will help in

Name of
SN reducing carbon footprint and/or
technology/item (Excluding taxes etc.) increase in operationalefficiency

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 Model DPR for Establishment of Mustard Oil Processing Unit (with Capital Subsidy)

18. List of Manufacturers/ Suppliers of P&M (enclose quotations)

I Certify that the information / contents as above furnished by me / us are true to the best
of my / our knowledge and belief and nothing material has been concealed. In case, any information
furnished in the application is found false, my / our application may be rejected out at any stage by the
Bank and not eligible under Agriculture Infrastructure Fund scheme.

Date: _________________ Signature of the Applicant

Place: ______

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 Model DPR for Establishment of Mustard Oil Processing Unit (with Capital Subsidy)

Annexures

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Contents Table

Contents Link
Annexure 1 - Estimated cost of the project Ann 1'!A1
Annexure 2 - Means of Finance Ann 2'!A1
Annexure 3 - Complete Estimate of Civil and Plant and Machinery Ann 3'!A1
Annexure 4 - Estimated Cost of Production Ann 4'!A1
Annexure 5- Projected balance sheet Ann 5'!A1
Annexure 8 - Details of Manpower Ann 8'!A1
Annexure 9 - Computation of Depreciation Ann 9'!A1
Annexure 10 - Calculation of Income tax Ann 10'!A1
Annexure 11- Break even analysis (At maximum capacity utilization) Ann 11'!A1
Annexure 13 - Repayment schedule Ann 13'!A1
Annexure 14 - Cash flow statement Ann 14'!A1
Assumptions Assumptions!A1
Sales Budget Budgets!A1
DPR with subsidy

Annexure 1 - Estimated cost of the project

Estimated cost of project

Grand Total (in
Sr. No. Particulars lakhs)
1 Land and site development
(a) Land (Lease in name of company) -
Total -

2 Site Development 16.00

(a) Total 16.00

3 Civil Work
(a) Civil Work -
Total -

4 Plant and Machinery (indegenous)

(a) Plant and Machinery 46.00
Total 46.00

5 Miscellanoeus Fixed Assets

(a) Cost -

6 Working Capital Margin 20.00

7 Preliminary Expenses
(a) Security Deposit -
Total

8 Pre-Operative Expense
(for 6 months upto the date od commencement of
commercial production)
(a) Establisment and Travelling and Other Expenses -
(b) Legal and Misc Expense -
Total -

9 E mandi expense -

Total Cost of Project 82.00

Annexure 2 - Means of Finance

Sr. No. Item Grand Total (in lakhs)

1 Promoter's equity 8.20
2 Eligible Assistance -
3 Term Loan 53.80
4 CC Limit 20.00
Total 82.00
Annexure 3 - Complete Estimate of Civil and Plant and Machinery

1. Building Units Amt

1 Building as per estimate 1 1,600,000
Total Plant and Machinery 1,600,000

2. Plant and machinery Units Capacity Amt

1 Automatic Oil expeller 2 1,000,000
2 Motor 2 400,000
3 Oil filter 50,000
4 Boilers 2 80,000
5 Oil storage tank 3 60,000
6 Shaker with blower 1 30,000
7 Weighing scale 1 50,000
8 Packaging machine 200,000
9 Tractor (for foraying the produce to and from farm) 500,000
10 Electrical expense including generator 1,200,000
11 Bucket elevator 2 300,000
12 seed cleaner 200,000
13 Conveyor belt 1 200,000
14 Oil testing equipment 250,000
15 Miscellaneous 80,000
Total Plant and Machinery 4,600,000

Total fixed Assets 6,200,000

Annexure 4 - Estimated Cost of Production

Year ending March 31st

Sr. No Description
I II III IV V VI VII VIII IX
No of Working months 12 12 12 12 12 12 12 12 12

Purchase of raw material input 227,500,000 255,937,500 273,000,000 290,062,500 307,125,000 324,187,500 341,250,000 341,250,000 341,250,000
Electricity expense 11,800,000 12,340,000 12,907,000 13,502,350 14,127,468 14,783,841 15,473,033 15,473,033 15,473,033
Running and Manintenance expense @15% of procurement cost 34,125,000 38,390,625 40,950,000 43,509,375 46,068,750 48,628,125 51,187,500 51,187,500 51,187,500
Fixed running cost 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000
Cost of Production 274,625,000 307,868,125 328,057,000 348,274,225 368,521,218 388,799,466 409,110,533 409,110,533 409,110,533
Add: Opening stock - 2,630,250 5,448,375 8,454,375 11,648,250 8,266,500 4,696,875 939,375 -
Less: Closing stock 2,630,250 5,448,375 8,454,375 11,648,250 8,266,500 4,696,875 939,375 - -
Sub Total 271,994,750 305,050,000 325,051,000 345,080,350 371,902,968 392,369,091 412,868,033 410,049,908 409,110,533

Administrative salaries and wages 1,696,320 1,798,099 1,905,985 2,020,344 2,141,565 2,270,059 2,406,262 2,550,638 2,703,676
Packaging cost @ Rs. 2 per kg 6,300,000 6,750,000 7,200,000 7,650,000 8,100,000 8,550,000 9,000,000 9,000,000 9,000,000
Selling expenses @ Rs. 2.5 per kg 7,796,250 8,353,125 8,910,000 9,466,875 10,226,250 10,794,375 11,362,500 11,278,125 11,250,000
Total 15,792,570 16,901,224 18,015,985 19,137,219 20,467,815 21,614,434 22,768,762 22,828,763 22,953,676

Cost of Sales 287,787,320 321,951,224 343,066,985 364,217,569 392,370,782 413,983,525 435,636,795 432,878,671 432,064,209
Expected sales revenue 289,327,500 325,493,438 347,193,000 368,892,563 398,482,875 420,620,813 442,758,750 439,470,938 438,375,000
Gross Profit 1,540,180 3,542,213 4,126,015 4,674,993 6,112,093 6,637,288 7,121,955 6,592,267 6,310,791

Financial expense
Interest on Term Loan 319,696 279,346 229,685 180,023 130,362 46,558 - - -
Interest on WC Loan 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000
total 519,696 479,346 429,685 380,023 330,362 246,558 200,000 200,000 200,000

Operating profits (PBT) 1,020,484 3,062,867 3,696,330 4,294,970 5,781,731 6,390,730 6,921,955 6,392,267 6,110,791
Preliminary Expense - - - - - - - - -
depreciation 850,000 730,500 628,125 540,386 465,160 400,635 345,264 297,726 256,893
Other income - Subsidy for repayment of loan - - - - - 1,250,000 - - -
Net Profit before Tax 170,484 2,332,367 3,068,205 3,754,584 5,316,571 7,240,095 6,576,691 6,094,541 5,853,897
Income Tax 51,145 699,710 920,462 1,126,375 1,594,971 1,797,029 1,973,007 1,828,362 1,756,169
Profits after Tax 119,339 1,632,657 2,147,744 2,628,209 3,721,600 5,443,067 4,603,684 4,266,179 4,097,728
Distribution of profits (50%) 59,669 816,329 1,073,872 1,314,104 1,860,800 2,721,533 2,301,842 2,133,089 2,048,864
Profit transfer to balance sheet 59,669 816,329 1,073,872 1,314,104 1,860,800 2,721,533 2,301,842 2,133,089 2,048,864

1. Electricity are semi-fixed cost. Rs. 10,00,000 pa is fixed, balance is variable at Rs. 12 per unit usage
2. Electricity usage in units is given below
Usage in units 900000 945000 992250 1041862.5 1093955.625 1148653.406 1206086.077 1206086.077 1206086.077
Variable cost 10800000 11340000 11907000 12502350 13127467.5 13783840.88 14473032.92 14473032.92 14473032.92
3. Closing stock is valued at Rs. 120 per kg
Annexure 5- Projected balance sheet

Projected Balance sheet

Year ending March 31st

Sr. No Description
I II III IV V VI VII VIII IX
A Asset
1 Fixed Capital expenditure
Gross Block 6,200,000 5,350,000.00 4,619,500.00 3,991,375.00 3,450,988.75 2,985,828.44 2,585,193.37 2,239,929.65 1,942,203.95
Less- Depreciation 850,000 730,500.00 628,125.00 540,386.25 465,160.31 400,635.07 345,263.73 297,725.69 256,893.22
net Block 5,350,000 4,619,500.00 3,991,375.00 3,450,988.75 2,985,828.44 2,585,193.37 2,239,929.65 1,942,203.95 1,685,310.74
2 Closing Stock 2,630,250 5,448,375 8,454,375 11,648,250 8,266,500 4,696,875 939,375 - -
3 Sundry debtors 28,932,750 27,124,453 28,932,750 30,741,047 33,206,906 35,051,734 36,896,563 36,622,578 36,531,250
4 Cash/ bank balance 16,432,823 13,298,381 12,202,139 11,070,515 16,328,424 22,363,754 29,767,282 33,411,456 35,808,542
Total assets 53,345,823 50,490,709 53,580,639 56,910,801 60,787,658 64,697,557 69,843,149 71,976,238 74,025,102

B Liabilities
1 Capital 820,000 879,669 1,695,998 2,769,870 4,083,974 5,944,774 8,666,307 10,968,149 13,101,238
Add- Profit 59,669 816,329 1,073,872 1,314,104 1,860,800 2,721,533 2,301,842 2,133,089 2,048,864
Less- Drawings - - - - - - - - -
Closing capital 879,669 1,695,998 2,769,870 4,083,974 5,944,774 8,666,307 10,968,149 13,101,238 15,150,102
2 term Loan 4,966,154 4,138,462 3,310,769 2,483,077 1,655,385 - - - -
3 Working capital 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
4 Creditors 45,500,000 42,656,250 45,500,000 48,343,750 51,187,500 54,031,250 56,875,000 56,875,000 56,875,000
Total liabilities 53,345,823 50,490,709 53,580,639 56,910,801 60,787,658 64,697,557 69,843,149 71,976,238 74,025,102

Current Ratio
Current Assets 45,365,573 40,422,834 41,134,889 41,811,562 49,535,330 57,415,489 66,663,844 70,034,034 72,339,792
Current Liabilities 45,500,000 42,656,250 45,500,000 48,343,750 51,187,500 54,031,250 56,875,000 56,875,000 56,875,000
Ratio 0.997045565 0.947641539 0.904063493 0.864880408 0.967723174 1.06263484 1.172111548 1.231367635 1.271908424
Average 1.046597403

Debt Equity ratio

Debt 6,966,154 6,138,462 5,310,769 4,483,077 3,655,385 2,000,000 2,000,000 2,000,000 2,000,000
Equity 879,669 1,695,998 2,769,870 4,083,974 5,944,774 8,666,307 10,968,149 13,101,238 15,150,102
Ratio 7.919059447 3.619380501 1.917335415 1.097724146 0.614890446 0.230778806 0.182346175 0.152657327 0.13201231
Average 1.762909397

Fixed asset coverage ratio

Fixed assets 5,350,000 4,619,500 3,991,375 3,450,989 2,985,828 2,585,193 2,239,930 1,942,204 1,685,311
Debt 6,966,154 6,138,462 5,310,769 4,483,077 3,655,385 2,000,000 2,000,000 2,000,000 2,000,000
ratio 0.767999117 0.752550125 0.7515625 0.769781293 0.81683017 1.292596686 - - -
0.572368877

Debt service coverage ratio

Interest on loan (TL + WC) 519,696 479,346 429,685 380,023 330,362 246,558 200,000 200,000 200,000
Instalment of loan 2,413,846 2,827,692 2,827,692 2,827,692 2,827,692 2,405,385 2,000,000 2,000,000 2,000,000
Total 2,933,542 3,307,038 3,257,377 3,207,715 3,158,054 2,651,942 2,200,000 2,200,000 2,200,000
Net operating income 1,540,180 3,542,213 4,126,015 4,674,993 6,112,093 6,637,288 7,121,955 6,592,267 6,310,791
ratio 0.52502396 1.071113427 1.266667919 1.45742146 1.93539847 2.502802491 3.237252155 0 0
Average 1.251125047

1. asssumed that 60 days of purchases are average creditors maintained

2. assumed that 30 days of sales are average debtors maintained by the business
Annexure 8 - Details of Manpower

Details of Manpower

S. No. Designation In no. Salary per person per month Annual cost
i. Machine operators 2 17,000 408,000
ii. Accountant 1 29,000 348,000
iii. Labour/ helper 3 12,000 432,000
iv. Security 2 9,400 225,600
Total 1,413,600

Add: benefits @ 20% 282,720

Total 1,696,320

Total annual wages 1,696,320

Annual increase in wages 6%
Total manpower 8
Annexure 9 - Computation of Depreciation

Computation of Depreciation

Sr. No. Particulars Building and civil work Plant and Machinery Misc Fixed Asset Amount in lakhs
i. Cost 1,600,000 4,600,000 - 62
ii. Pre operatives - - - -
iii. Contingencies - - - -
Total 62

Rates of Depreciation 10% 15% 10% Total depreciation for the year
Year 1 160,000.00 690,000.00 - 850,000.00
Year 2 144,000.00 586,500.00 - 730,500.00
Year 3 129,600.00 498,525.00 - 628,125.00
Year 4 116,640.00 423,746.25 - 540,386.25
Year 5 104,976.00 360,184.31 - 465,160.31
Year 6 94,478.40 306,156.67 - 400,635.07
Year 7 85,030.56 260,233.17 - 345,263.73
Year 8 76,527.50 221,198.19 - 297,725.69
Year 9 68,874.75 188,018.46 - 256,893.22
Annexure 10 - Calculation of Income tax

Calculation of Income Tax

Year ending March 31st

Particulars I II III IV V VI VII VIII IX
Net profit before tax 1,020,484 3,062,867 3,696,330 4,294,970 5,781,731 6,390,730 6,921,955 6,392,267 6,110,791
Add- dep on SLM - - - - - - - - -
Sub total 1,020,484 3,062,867 3,696,330 4,294,970 5,781,731 6,390,730 6,921,955 6,392,267 6,110,791
Less- Dep on WDV 850,000 730,500 628,125 540,386 465,160 400,635 345,264 297,726 256,893
Sub total 170,484 2,332,367 3,068,205 3,754,584 5,316,571 5,990,095 6,576,691 6,094,541 5,853,897
Less - Deductions - - - - - - - - -
Taxable profits 170,484 2,332,367 3,068,205 3,754,584 5,316,571 5,990,095 6,576,691 6,094,541 5,853,897
Income tax @30% 51,145 699,710 920,462 1,126,375 1,594,971 1,797,029 1,973,007 1,828,362 1,756,169
Annexure 11- Break even analysis (At maximum capacity utilization)

Break even capacity at maximum capacity utilixzation

Sales 413,325,000
Variable cost
- Procurement cost of inputs 325,000,000
- Running and maintenance cost 4,875,000
- Interest on Working capital 200,000
- electricity expense 1,456,086 331,531,086
Contribution 81,793,914
Less: fixed cost
Wages and salaries 1,696,320
Depreciation 850,000
Electricity 1,000,000
Fixed running expense 1,200,000
Interest on TL 319,696
Fixed cost 5,066,016

Particulars Oil Cake

Sales price per kg 160 39
Procurement cost of rapeseed 36.11111111 26
Running and maintenance cost 3.611111111 3.9
Interest on Working capital 0.0400 0.0400
selling expenses 2.5 2.5
Packaging cost 2 2
Electricity charges 0.2912 0.29122
Contribution per kg 115.4465606 4.268782785
Contribution margin 72.154% 10.946%
Sales mix 44.44% 55.56%
Proportionate contribution 32.07% 6.08% 38.15%

BEP total in Rs. 13,279,420.68

BEP 32.13%

Break-even point is the condition when an entity generate sufficient revenue that it can meet its fixed
expense after deducting any variable expense, i.e., the point where contribution is equal to the fixed
expense.
For the first year of operation the break-even capacity comes at 32.13% capacity, it is because of the
fact that in the Initial year the fixed expense of consultancy for project is taken in to consideration for
calculation of BEP. considering our operational capacity in year 1 to be 75% which is more than the
BEP, hence we can conclude that the project is sound enough to cover its fixed expense.
Annexure 13 - Repayment schedule

Repayment schedule
Amount of Loan (in lakhs) 53.80
Amount of subsidy (in lakhs) 12.50
Rate of interest 6.00%
Moratorium period 6 months

Year Quarter Balance outstanding Principal instalment Interest

1 53.80 0 0.807
2 53.80 0 0.807
1
3 53.80 2.069230769 0.807
4 51.73076923 2.069230769 0.77596
1 49.66153846 2.069230769 0.74492
2 47.59230769 2.069230769 0.71388
2
3 45.52307692 2.069230769 0.68285
4 43.45384615 2.069230769 0.65181
1 41.38461538 2.069230769 0.62077
2 39.31538462 2.069230769 0.58973
3
3 37.24615385 2.069230769 0.55869
4 35.17692308 2.069230769 0.52765
1 33.10769231 2.069230769 0.49662
2 31.03846154 2.069230769 0.46558
4
3 28.96923077 2.069230769 0.43454
4 26.9 2.069230769 0.4035
1 24.83076923 2.069230769 0.37246
2 22.76153846 2.069230769 0.34142
5
3 20.69230769 2.069230769 0.31038
4 18.62307692 2.069230769 0.27935
1 16.55384615 2.069230769 0.24831
2 14.48461538 1.984615385 0.21727
6
3 12.5 0 0
4 0 0 0
1 0 0 0
2 0 0 0
7
3 0 0 0
4 0 0.00 0
Annexure 14 - Cash flow statement

Particulars 0 I II III IV V VI VII VIII IX

opening balance 2,000,000 2,000,000 16,432,823 13,298,381 12,202,139 11,070,515 16,328,424 22,363,754 29,767,282 33,411,456
Add: Capital 820,000 - - - - - - - - -
Add: Loan disbursement 5,380,000 - - - - - - - - -
Less: Purchase of asset 6,200,000 - - - - - - - - -
Add: Sales realizations - 260,394,750 298,368,984 318,260,250 338,151,516 365,275,969 385,569,078 405,862,188 402,848,359 401,843,750
Less: Payment made to creditors of previos year - - 45,500,000 42,656,250 45,500,000 48,343,750 51,187,500 54,031,250 56,875,000 56,875,000
Add: Receipts from debtors of previos year - - 28,932,750 27,124,453 28,932,750 30,741,047 33,206,906 35,051,734 36,896,563 36,622,578
Less: Payments made for current year purchase - 244,917,570 282,113,099 300,572,985 319,067,694 337,801,532 356,382,650 375,004,295 375,064,296 375,189,209
Less: Interest payments - 519,696 479,346 429,685 380,023 330,362 246,558 200,000 200,000 200,000
- 16,957,484 15,642,112 15,024,165 14,338,687 20,611,887 27,287,701 34,042,131 37,372,908 39,613,575
Less: Income tax - 51,145 699,710 920,462 1,126,375 1,594,971 1,797,029 1,973,007 1,828,362 1,756,169
- 16,906,339 14,942,402 14,103,703 13,212,312 19,016,916 25,490,672 32,069,124 35,544,545 37,857,406
Less: Distrubutions made from profits - 59,669 816,329 1,073,872 1,314,104 1,860,800 2,721,533 2,301,842 2,133,089 2,048,864
- 16,846,669 14,126,074 13,029,831 11,898,208 17,156,116 22,769,139 29,767,282 33,411,456 35,808,542
Less: Principal repayment of loan - 413,846 827,692 827,692 827,692 827,692 405,385 - - -
Closing cash balance 2,000,000 16,432,823 13,298,381 12,202,139 11,070,515 16,328,424 22,363,754 29,767,282 33,411,456 35,808,542

PV dicounting rate 6.00%

PVF 1 0.943396226 0.889996440 0.839619283 0.792093663 0.747258173 0.704960540 0.665057114 0.627412371 0.591898464
Inflows 8,200,000 262,394,750 343,734,558 358,683,084 379,286,405 407,087,531 435,104,408 463,277,676 469,512,204 471,877,784
PV of Inflows 8,200,000 247,542,217 305,922,533 301,157,234 300,430,358 304,199,485 306,731,439 308,106,114 294,577,765 279,303,735
Outflows 6,200,000 245,961,927 330,436,176 346,480,945 368,215,889 390,759,107 412,740,654 433,510,394 436,100,748 436,069,243
PV of Outflows 6,200,000 232,039,554 294,087,021 290,912,083 291,661,473 291,997,937 290,965,874 288,309,172 273,615,004 258,108,715

Net cash inflow 2,000,000 16,432,823 13,298,381 12,202,139 11,070,515 16,328,424 22,363,754 29,767,282 33,411,456 35,808,542
Net Present value 2,000,000 15,502,663 11,835,512 10,245,151 8,768,885 12,201,548 15,765,564 19,796,943 20,962,761 21,195,021 138,274,048
Sales Budget

Year ending March 31st

Particulars I II III IV V VI VII VIII IX
Production capacity utilization 70% 75% 80% 85% 90% 95% 100% 100% 100%
Production qty for oil 1400000 1500000 1600000 1700000 1800000 1900000 2000000 2000000 2000000
Production qty for cake 1750000 1875000 2000000 2125000 2250000 2375000 2500000 2500000 2500000
Sale qty for oil 1386000 1485000 1584000 1683000 1818000 1919000 2020000 2005000 2000000
Sale qty for cake 1732500 1856250 1980000 2103750 2272500 2398750 2525000 2506250 2500000
Sales for Oil 221,760,000 249,480,000 266,112,000 282,744,000 305,424,000 322,392,000 339,360,000 336,840,000 336,000,000
Sales for Cake 67,567,500 76,013,438 81,081,000 86,148,563 93,058,875 98,228,813 103,398,750 102,630,938 102,375,000
Total Sales 289327500 325493438 347193000 368892563 398482875 420620813 442758750 439470938 438375000

Production budget

Production capacity 20000 kg per day

Production days in a year 250 days
Production qty in a year 5,000,000 kgs

Products Production at 100% sales prices for oil purchase prices sales prices for
capacity per kg in year I per kg in year I cake per kg in year
I
Output 5,000,000 160.0 65.0 39

Output stock calculation - For oil

Year ending March 31st
Particulars I II III IV V VI VII VIII IX
Opening Stock - 14,000 29,000 45,000 62,000 44,000 25,000 5,000 -
Add: Production 1,400,000 1,500,000 1,600,000 1,700,000 1,800,000 1,900,000 2,000,000 2,000,000 2,000,000
Ouput available for sale 1,400,000 1,514,000 1,629,000 1,745,000 1,862,000 1,944,000 2,025,000 2,005,000 2,000,000
Less: Sales 1,386,000 1,485,000 1,584,000 1,683,000 1,818,000 1,919,000 2,020,000 2,005,000 2,000,000
Closing Stock 14,000 29,000 45,000 62,000 44,000 25,000 5,000 - -
Value for closing stock 2,016,000 4,176,000 6,480,000 8,928,000 6,336,000 3,600,000 720,000 - -

Year ending March 31st

Particulars I II III IV V VI VII VIII IX
Opening Stock - 17,500 36,250 56,250 77,500 55,000 31,250 6,250 -
Add: Production 1,750,000 1,875,000 2,000,000 2,125,000 2,250,000 2,375,000 2,500,000 2,500,000 2,500,000
Ouput available for sale 1,750,000 1,892,500 2,036,250 2,181,250 2,327,500 2,430,000 2,531,250 2,506,250 2,500,000
Less: Sales 1,732,500 1,856,250 1,980,000 2,103,750 2,272,500 2,398,750 2,525,000 2,506,250 2,500,000
Closing Stock 17,500 36,250 56,250 77,500 55,000 31,250 6,250 - -
Value for closing stock 614,250 1,272,375 1,974,375 2,720,250 1,930,500 1,096,875 219,375 - -

Assumptions:
1. assumed that 99% of production is sold for first 5 years, thereafter demand is almost 101% of output but we are able to serve market according to the availablility of output
input output ratio is 50%, i.e., 1 kg of rapeseed would produce 0.5 kg/ litre of oil
Proportion
Wastage 10%
oil 40%
Cake 50%
S. no. Assumptions
1 Electricity are semi-fixed cost. Rs. 10,00,000 pa is fixed, balance is variable at Rs. 12 per unit usage
2 Electricity usage in units is given below
Usage in units 900000 945000 992250 1041862.5 1093955.625 1148653.406 1206086.077 1206086.077 1206086.077
Variable cost 10800000 11340000 11907000 12502350 13127467.5 13783840.88 14473032.92 14473032.92 14473032.92
3 Closing stock is valued at Rs. 120 per kg
4 Asssumed that 60 days of purchases are average creditors maintained
5 Assumed that 30 days of sales are average debtors maintained by the business
6 It is assumed that input output ratio of mustard oil production is 50%, i.e., to produce output of 1 litre of oil- 2 kg of rapeseed is required to be processed
7 The selling expense per kg is takes to be variable @ Rs. 2.5 per kg of output sold
8 Packing expense is variable at Rs 2 per kg
There are some miscellaneous expenses assumed for managing office and employees expense. This is semi fixed
cost, fixed to the extent of Rs 10 lakhs per annum and variable @ 1% of sales. The fixed expense would increase after
9 5 years by 20%
 (Wholly – owned subsidiary of NABARD)

i. More than 100 Full-time Consultants

ii. Backed by 400 domain specialists
iii. Executed over 1700 assignments across India and in African and
Asian Continents
iv. Core Competencies
a. Preparation/Appraisals of DPRs
b. Techno-feasibility study
c. Baseline Surveys
d. Project Management Consultancy
e. Climate Issues and Green Funds
f. Monitoring and Evaluation
g. Impact Assessment Studies
h. Third Party Monitoring of Infrastructural Projects
i. Skills for Livelihood
j. Capacity Building
k. Accreditation of Rural Godowns
l. Climate Change Issues
m. CSR Facilitation
n. IT in Rural Banks
 Pro - Services Rendered by NABCONS
No. Name of Services Description

1 Project Management Entails provision of end-to-end solution, including assistance in

Consultancy (PMC) statutory approvals, bid process management, issuing and
evaluating tender documents and supervision over infrastructure
projects like Mega Food Park, Rural Godowns, Cold Storage, etc.
funded by Govt. or private entities.
2 Preparation of Detailed For various activities under agriculture, horticulture, forestry,
Project Report / Conduct / fisheries, irrigation, animal husbandry, food processing activities,
Techno-economic agri-infrastructure, climate issues, etc.
Feasibility
3 Third Party Monitoring TPM of various Govt.-funded infra projects to assess the level of
(TPM) of Infrastructure compliance followed in execution. This also covers socio-
Projects economic impact evaluation.
4 Monitoring and M & E is undertaken for various developmental schemes of Govt.
Evaluation (M&E) of India and State Govts in the areas of agriculture, animal
husbandry and all other socio-development sectors.
5 Training and Capacity Training is imparted on forward markets, agriculture market
Building infrastructure, rural godown, agri-financing, treasury and
investment management for banks, etc.

6 Studies / Baseline Baseline surveys are taken up for measuring impact of community
Surveys investment made by public and private sector Companies.
Studies are conduct on women, children, disadvantaged groups /
regions, etc.
7 Livelihood Mapping Livelihood mapping and analysis is done for identification of
potential activities to be taken up by SHGs
8 International Visitors’ Entails organizing study tours / exposure for the visiting foreign
Programme / delegates to their areas of interest such as watershed, micro-
International Exposure finance, fin-inclusion, cooperatives, projects appraisal, agro-
Visits processing, post-harvest technologies, farmers’ clubs, etc.
9 Consultancy on Banking Designing and execution of priority sector strategies, advisory
and Finance services on Treasury and Investment Management for Banks,
preparation of IT Policy, etc.
10 Transaction advisory Transaction Advisory for setting up of Agri-mall, Silos & Cold
Storages

11 Skills for Livelihood Skilling of rural BPL youth and placement in the formal sector,
monitoring skill initiatives of MORD, Govt. of India, facilitating
access to credit for trainees, etc.

12 Accreditation of Engaged by WDRA as Accreditation Agency for accrediting rural

Godowns godowns.