dairy project -project appraisal

Annexure IV - Working Capital and Margin Money

Working Capital Requirement

Per Month

Per Month in Lacs.

Current Assets : 1unit50 units

50 Units -100% Capa.

2Yr.- 30% Capa.

3Yr.-50% Capa.

4Yr.-70% Capa.

5Yr.-80% Capa.

Salaries and Wages (50:50) 20 1000 12000 3600 6000 8400 9600

Raw Material 300 15000 180000 54000 90000 126000 144000

Utilities 15 750 9000 2700 4500 6300 7200

Other Expenses 5 250 3000 900 1500 2100 2400Packing Material 10 500 6000 1800 3000 4200 4800Work-in-Progress 130 6500 78000 23400 39000 54600 62400Receivables 30 1500 18000 5400 9000 12600 14400Cash Requirement 10 500 6000 1800 3000 4200 4800Finished Goods 200 10000 120000 36000 60000 84000 96000Total (C.A) 129600 216000 302400 345600Current Liability : Bills Payable 80 4000 48000 14400 24000 33600 38400Outstanding Expenses 40 2000 24000 7200 12000 16800 19200Creditors 150 7500 90000 27000 45000 63000 72000Accrued Benefit 25 1250 15000 4500 7500 10500 12000Provisions Provision for bad and doubtful debts 5 250 3000 900 1500 2100 2400Provision for taxation 2 100 1200 360 600 840 960Total (C.L) 54360 90600 126840 144960Bank Finance (C.A-C.L) 75240 125400 175560 200640

Product Mix Units @ 2ND Year (25%) 3RD Year (40%) 4TH Year (50%) 5TH Year (60%)

100% Capa.

Quantity Amount Quantity Amount Quantity Amount Quantity AmountPrice/Unit Units

Packaged Milk 500 125 1875 200 3000 250 3750 300 4500 15 litres

Paneer 250 62.5 6875 100 11000 125 13750 150 16500 110 kgs.

Peda 300 75 9375 120 15000 150 18750 180 22500 125 kgs.

Butter 500 125 18750 200 30000 250 37500 300 45000 150 kgs.

Lassi 800 200 23000 320 36800 400 46000 480 55200 115 kgs.

Ice-cream 500 125 22500 200 36000 250 45000 300 54000 180 kgs.

Rasagolla 750 187.5 15000 300 24000 375 30000 450 36000 80 kgs.

Milk Cake 500 125 25000 200 40000 250 50000 300 60000 200 kgs.Skim Milk Powder 800 200 5000 320 8000 400 10000 480 12000 25 kgs.

UHT Milk 1000 250 4500 400 7200 500 9000 600 10800 18 litresFlavoured Milk 800 200 4000 320 6400 400 8000 480 9600 20 litres

Sweet Curd 500 125 6875 200 11000 250 13750 300 16500 55 kgs.

Yoghurt 800 200 12000 320 19200 400 24000 480 28800 60 kgs.

White Butter 300 75 9000 120 14400 150 18000 180 21600 120 kgs.Infant Milk Food 750 187.5 3750 300 6000 375 7500 450 9000 20 kgs.

Pure Ghee 800 200 28000 320 44800 400 56000 480 67200 140 kgs.

2462.5 195500 3940 312800 4925 391000 5910 469200

Revenues 195500 312800 391000 469200

Annexure V - Revenue From the Sales :

Annexure VI - Depreciation of assets

figures in lacs.Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Land 12500 12500 12500 12500 12500 12500 12500 12500 12500 12500

Buildings *

Opening Balance 5225 4702.5 4232.25 3809.025 3428.1225 3085.31025 2776.779225 2499.101 2249.191 2024.272Less: Depreciation (@10%) 522.5 470.25 423.225 380.9025 342.81225 308.531025 277.6779225 249.9101 224.9191 202.4272Closing Balance 4702.5 4232.25 3809.025 3428.1225 3085.31025 2776.77923 2499.101303 2249.191 2024.272 1821.845

Plant and Machinery **

Opening Balance 48950 41607.5 35366.375 30061.4188 25552.2059 21719.375 18461.46879 15692.25 13338.41 11337.65Less: Depreciation (@15%) 7342.5 6241.125 5304.95625 4509.21281 3832.83089 3257.90626 2769.220318 2353.837 2000.762 1700.647Closing Balance 41607.5 35366.375 30061.4188 25552.2059 21719.375 18461.4688 15692.24847 13338.41 11337.65 9637.002

Miscellaneous Fixed Assets#

Opening Balance 1430 1215.5 1033.175 878.19875 746.468938 634.498597 539.3238073 458.4252 389.6615 331.2122Less: Depreciation (@ 15%) 214.5 182.325 154.97625 131.729813 111.970341 95.1747895 80.8985711 68.76379 58.44922 49.68183Closing Balance 1215.5 1033.175 878.19875 746.468938 634.498597 539.323807 458.4252362 389.6615 331.2122 281.5304

Total Depreciation 8079.5 6893.7 5883.1575 5021.84513 4287.61348 3661.61207 3127.796812 2672.511 2284.13 1952.756

Depreciation (Under the Written Down Method)

Depreciation (Under the Straight Down Method) figures in lacs. Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year

8Year 9 Year

10Land 12500 12500 12500 12500 12500 12500 12500 12500 12500 12500

Buildings * Opening Balance 5225 4702.5 4180 3657.5 3135 2612.5 2090 1567.5 1045 522.5Less: Depreciation (@10%) 522.5 522.5 522.5 522.5 522.5 522.5 522.5 522.5 522.5 522.5Closing Balance 4702.5 4180 3657.5 3135 2612.5 2090 1567.5 1045 522.5 0 Plant and Machinery ** Opening Balance 48950 41607.

5 3426526922.

5 1958012237.

5 4895-

2447.5 0 0Less: Depreciation (@15%) 7342.5 7342.5 7342.5 7342.5 7342.5 7342.5 7342.5 7342.5 7342.5 7342.5Closing Balance 41607.

5 3426526922.

5 1958012237.

5 4895-

2447.5 0 0 0 Miscellaneous Fixed Assets# Opening Balance 1430 1287 1144 1001 858 715 572 429 286 143Less: Depreciation (@ 10%) 143 143 143 143 143 143 143 143 143 143Closing Balance 1287 1144 1001 858 715 572 429 286 143 0 Total Depreciation 8008 8008 8008 8008 8008 8008 8008 8008 8008 8008

*Buildings =(4750+475 Contingencies)=5225**Plant and Machinery= (44500+4450)=48950# Miscellaneous Fixed

Assets=(1300+130)=1430

Annexure VII - Interest and Repayment Schedule Of Term Loan :

Repayment Of Interest Schedule of Term Loan

Particulars Of Term Loans Year 1

Year 2

Year 3 Year 4

Year 5 Year 6

Year 7

Year 8

Year 9

Year 10

Year 11

Year 12

IDBI Opening Balance 175 175 175 157.5 140 122.5 105 87.5 70 52.5 35 17.5Amount Repaid 0 0 17.5 17.5 17.5 17.5 17.5 17.5 17.5 17.5 17.5 17.5Closing Balance 175 175 157.5 140 122.5 105 87.5 70 52.5 35 17.5 0Interest @ 10% 17.5 17.5 17.5 15.75 14 12.25 10.5 8.75 7 5.25 3.5 1.75Total Repayment 17.5 17.5 35 33.25 31.5 29.75 28 26.25 24.5 22.75 21 19.25 ICFI Opening Balance 200 200 200 180 160 140 120 100 80 60 40 20Amount Repaid 0 0 20 20 20 20 20 20 20 20 20 20Closing Balance 200 200 180 160 140 120 100 80 60 40 20 0Interest @ 18% 36 36 36 32.4 28.8 25.2 21.6 18 14.4 10.8 7.2 3.6Total Repayment 36 36 56 52.4 48.8 45.2 41.6 38 34.4 30.8 27.2 23.6 SBI Opening Balance 125 125 125 112.5 100 87.5 75 62.5 50 37.5 25 12.5Amount Repaid 0 0 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5 12.5Closing Balance 125 125 112.5 100 87.5 75 62.5 50 37.5 25 12.5 0Interest @ 15% 18.75 18.75 18.75 16.875 15 13.125 11.25 9.375 7.5 5.625 3.75 1.875Total Repayment 18.75 18.75 31.25 29.375 27.5 25.625 23.75 21.875 20 18.125 16.25 14.375 Canara Bank Opening Balance 50 50 50 45 40 35 30 25 20 15 10 5Amount Repaid 0 0 5 5 5 5 5 5 5 5 5 5Closing Balance 50 50 45 40 35 30 25 20 15 10 5 0Interest @ 18% 9 9 9 8.1 7.2 6.3 5.4 4.5 3.6 2.7 1.8 0.9

Total Repayment 9 9 14 13.1 12.2 11.3 10.4 9.5 8.6 7.7 6.8 5.9Total (in lakhs) 8125 81.25 136.25 128.125 120 111.875 103.75 95.625 87.5 79.375 71.25 63.125

Annexure XIIa - Social Cost Of Initial Outlay

Economic Rate Of Return

in Lakhs.

Items Financial Cost BOC Tradable Value T L R

Land 12500 SCF = 1/1.5

Buildings 4750 T = 0.5 2375 1188 1188

L = 0.25

R = 0.25

Plant and Machinery (Imported) 35000 CIF Value 40000

Plant and Machinery (Indigenous) 10750 CIF Value 10750

Transportation 50 T= 0.65 25 12.5 5

L = 0.25

R= 0.10

Technical Know How 1600 SCF= 1.50 2000

Pre-Operative Expenses 2500 SCF = 1.00 2500

Working Capital Requirement 5800 CIF Value 5000

Total 72950 60250 2400 1200 1193

Annexure XIIb - Calculation Of Social Value

Economic Rate Of Return in Lakhs.

Items Financial Cost BOC Tradable Value T L RLand 12500 SCF = 1/1.5 Buildings 4750 T = 0.5 2375 1188 1188 L = 0.25 R = 0.25 Plant and Machinery (Imported) 35000 CIF Value 40000 Plant and Machinery (Indigenous) 10750 CIF Value 10750 Transportation 50 T= 0.65 25 12.5 5 L = 0.25 R= 0.10 Technical Know How 1600 SCF= 1.50 2000 Pre-Operative Expenses 2500 SCF = 1.00 2500 Working Capital Requirement 5800 CIF Value 5000 Total 72950 60250 2400 1200 1193

Calculation Of Social Value Rs. Lakh

Tradable Value ab inito 60250Social Cost of tradeable component 1600 1600Social Cost of labour component 600 600Social cost of residual component 596.25 596.25 63046.25

Annexure XIIIa - Social Value Of Inputs Consumed In The Production Process

Item Description Financial Cost BOC Tradeable Value T L R

Raw Material 14400 SCF 0.8 11520

Labour 4800 SCF 0.5 2400

Salary 4800 SCF 0.8 3840

Repairs and Maintenance 1200 SCF 0.6667 799.992

Water, Fuel etc. 1000 T 0.5 500 250 250

L 0.25

R 0.25

Electricity 5000 T 0.71 3550 1250 650

L 0.13

R 0.16

Other Overheads 2400 SCF 0.6667 1599.984

Total 20159.976 4050 1500 900

Annexure XIIIb - Calculation Of Social Value

Calculation Of Social Value

Tradable Value ab inito 20159.976 20160

Social Cost of tradeable component 2700 2700

Social Cost of labour component 750 750

Social cost of residual component 450 450

Annexure XIV - Effective Rate Of Protection

Effective Rate Of Production

Input Domestic Prices World Prices

Tradeable Input

Raw Material 14400 13000

14400 13000

Non-Tradeable Input

Power, Fuel and Water 6000 5000

Repairs and Maintenance 1200

Administrative Overheads 2400

9600 5000

Total Input Cost 24000 18000

Output

Sales Realization 48300 35000

Value Added 24300 17000

Effective Rate of Protection (ERP)(%) 42.94117647

Annexure IX (A) -Long Term Point Of View;

Net Cash Flows (in lacs.)

Year 1 2 3 4 5 6 7 8 9 10

A Investment 100000

B Sales 195500 312800 391000 469200 492660 517293 543157.65 570315.53 598831.309

C Operating Cost(exclud. Depre.) 93745 142270 147900 188600 207460 228206 251026.6 276129.26 303742.186

D Depreciation 8079.5 6893.7 5883.1575 5021.8451 4287.61348 3661.61 3127.797 2672.5112 2284.13 1952.75647

E Interest On Term Loan 8125 8125 13625 12812.5 12000 11187.5 10375 9562.5 8750 7937.5

(C+D+E) 108763.7 161778.158 165734.35 204887.613 222309 241708.8 263261.61 287163.39 313632.442

Profit before tax 86736.3 151021.843 225265.65 264312.387 270351 275584.2 279896.04 283152.14 285198.867

Tax (@ 45%) 39031.335 67959.8291 101369.54 118940.574 121658 124012.9 125953.22 127418.46 128339.49

Profit after tax 47704.965 83062.0134 123896.11 145371.813 148693 151571.3 153942.82 155733.68 156859.377

Initial Flow 116205

Operatiing Flow (D+PAT+Interest) 60286.165 98482.6709 137886.71 158059.426 160186 161961.6 163309.08 164142.81 164368.383

Net Cash Flow from long term -

116205 60286.165 98482.6709 137886.71 158059.426 160186 161961.6 163309.08 164142.81 164368.383

Calculation Of Estimated Cash Flows

Year 1 2 3 4 5 6 7 8 9 10

Initial Outlay 100000

Net Cash Flows 60286.165 98482.671137886.

7 158059.4 160186 161962 163309.08 164142.81 164368.383

Discounted Cash Flows @15% 52422.752 74467.04890662.7

5 90370.99 79640.7 70020.5 61393.933 53658.575 46723.7531

Cumulative Discounted Cash Flows 52422.752 126889.8

217552.5 307923.5 387564 457585 518978.6 572637.2 619360.95

BCR 0.5242275 1.2688982.17552

5 3.079235 3.8756 4.57585 5.189786 5.726372 6.1936095

NBCR -0.475772 0.2688981.17552

5 2.079235 2.8756 3.57585 4.189786 4.726372 5.1936095

Internal Rate Of Return 83%

Annexure IX(B) - Estimated Cash Flows :

Annexure X(A) - Equity Point Of View;


Year 1 2 3 4 5 6 7 8 9 10

A Investment 100000

B Sales 195500 312800 391000 469200 492660 517293 543157.65570315.5

3 598831.3091

COperating Cost(excluding depre.) 93745 142270 147900 188600 207460 228206 251026.6

276129.26 303742.186

D Depreciation 8079.5 6893.7 5883.1575 5021.845125 4287.613483661.612

1 3127.797 2672.5112 2284.13 1952.756469

E Interest On Term Loan 8125 8125 13625 12812.5 12000 11187.5 10375 9562.5 8750 7937.5

(C+D+E) 108763.7 161778.158 165734.3451 204887.613222309.1

1 241708.8 263261.61287163.3

9 313632.4425

Profit before tax 86736.3 151021.843 225265.6549 264312.387270350.8

9 275584.2 279896.04283152.1

4 285198.8667

Tax (@ 45%) 39031.34 67959.8291 101369.5447 118940.574 121657.9 124012.9 125953.22127418.4

6 128339.49

F Profit after tax 47704.97 83062.0134 123896.1102 145371.813148692.9

9 151571.3 153942.82155733.6

8 156859.3767

GRepayment of Term Loan 55 55 55 55 55 55 55 55

Initial Flow 116205

Operatiing Flow (D+F-G) 54598.67 88890.1709 128862.9553 149604.426 152299.6 154644.1 156560.33

157962.81 158757.1331

Net Cash Flow from - 54598.67 88890.1709 128862.9553 149604.426 152299.6 154644.1 156560.33 157962.8 158757.1331

Equity 116205 1

Annexure X(B) - Estimated Cash Flows


Year 1 2 3 4 5 6 7 8 9 10

Initial Outlay 100000

Net Cash Flows 54598.67 88890.1709 128862.9553 149604.426 152299.6 154644.11 156560.333 157962.808 158757.1331Cumulative Non-Discounted Cash Flows 54598.67 143488.836 272351.7912 421956.217 574255.82 728899.9 885460.26 1043423.1 1202180.2

Discounted Cash Flows @15% 47477.1 67213.7398 84729.48487 85536.8162 75719.8181 66856.916 58856.828 51638.3223 45128.68559Cumulative Discounted Cash Flows 47477.1 114690.84 199420.3247 284957.141 360676.96 427533.9 486390.7 538029.02 583157.7105

BCR 0.474771 1.1469084 1.994203247 2.84957141 3.6067696 4.275339 4.863907 5.3802902 5.831577105

NBCR -0.52523 0.1469084 0.994203247 1.84957141 2.6067696 3.275339 3.863907 4.3802902 4.831577105


Annexure XI (A) - Total Fund Point Of View


Year 1 2 3 4 5 6 7 8 9 10

A Investment 100000

B Sales 195500 312800 391000 469200 492660 517293 543157.65 570315.5325 598831.3091

COperating Cost(excluding depreciation) 93745 142270 147900 188600 207460 228206 251026.6 276129.26 303742.186

D Depreciation 8079.5 6893.7 5883.165021.8

5 4287.613661.6

1 3127.796812 2672.511186 2284.130015 1952.756469

E Interest On Term Loan 8125 8125 1362512812.

5 1200011187.

5 10375 9562.5 8750 7937.5

(C+D+E) 108764 161778 165734 204888 222309 241708.7968 263261.6112 287163.39 313632.4425

Profit before tax 86736.

3 151022 225266 264312 270351 275584.2032 279896.0388 283152.1425 285198.8667

Tax (@ 45%) 39031.

3 67959.8 101370 118941 121658 124012.8914 125953.2175 127418.4641 128339.49

Profit after tax 47705 83062 123896 145372 148693 151571.3118 153942.8213 155733.6784 156859.3767

Initial Flow 116205

Operatiing Flow (D+PAT+Interest)

62723.7 102570 141730 161659 163542 165074.1086 166177.8325 166767.8084 166749.6331

Net Cash Flow from long term aspect

-116205

62723.7 102570 141730 161659 163542 165074.1086 166177.8325 166767.8084 166749.6331

Annexure XI(B) - Estimated Cash Flows


Year 1 2 3 4 5 6 7 8 9 10

Initial Outlay10000

0

Net Cash Flows 62723.

710257

014173

016165

916354

2165074.108

6166177.832

5166767.808

4166749.633

1

Discounted Cash Flows @15%

54542.3

77557.8

93190.1

92429.3

81309.3 71366.0925

62472.40246

54516.69238

47400.65292

Cumulative Discounted Cash Flows

54542.3

132100

225290

317719

399029

470394.8992

532867.3016 587383.994

634784.6469

BCR 0.5454

2 1.321 2.25293.1771

93.9902

94.70394899

25.32867301

6 5.873839946.34784646

9

NBCR -

0.4546 0.321 1.25292.1771

92.9902

93.70394899

24.32867301

6 4.873839945.34784646

9


Annexure III - Cost of Project

Project Cost Details

Project Cost Details For1Unit(laks) Total(inlacs)Land 250 12500Site Development 40 2000Buildings 95 4750Plant and Machinery 890 44500Miscellaneous Fixed Assets 26 1300Establishment of private veterinary clinics 50 2500Technical Know How 32 1600Preliminary and Pre-Operative Expenses 50 2500Provision for Contingencies 111.7 5585Margin Money for working capital 116 5800Establishment of small dairy farms * 40 2000

1700.7 85035

*100 animal unit (buffaloes/cross breed cows) for milk production

dairy project -project appraisal

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