SYMBIOSIS INSTITUTE OF INTERNATIONAL BUSINESS (SIIB) constituent of SYMBIOSIS INTERNATIONAL (DEEMED UNIVERSITY) (Estd. Under section 3 of the UGC act 1956, notification no. F-9-12/2001(A)-U-3 of the Govt. of India) Accredited by NAAC with ‘A’ Grade REPORT Course Name: Project Planning Appraisal And Controle Code No:- 020242210 Project name: Project repot on Fresh Papaya Fruit Production Programme: MBA-AB Batch: 2009-11 [Fresh] Season: March 2010. Semester- II Seat No. Name of the Student: Sachin Lakade PRN: 09020242032
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SYMBIOSIS INSTITUTE OF INTERNATIONAL BUSINESS (SIIB)constituent of SYMBIOSIS INTERNATIONAL (DEEMED UNIVERSITY)
(Estd. Under section 3 of the UGC act 1956, notification no. F-9-12/2001(A)-U-3 of the Govt. of India)Accredited by NAAC with ‘A’ Grade
REPORT
Course Name: Project Planning Appraisal And Controle Code No:- 020242210
Project name: Project repot on Fresh Papaya Fruit Production
Programme: MBA-AB Batch: 2009-11 [Fresh]
Season: March 2010.
Semester- II
Seat No.
Name of the Student: Sachin Lakade
PRN: 09020242032
Submitted to Prof. Chitragar
Submission date: [to be written by receiver at the time of submission only]
National Horticulture Board......................................................................................................................
ToThe Managing DirectorNational Horticulture BoardPlot No. 85, Sector-18, Institutional Area, Gurgaon-122015 (Haryana)(projects above Rs. 20.00 Lakh may be sent to this address and a copy of the same to concerned State Office too)
Application for Letter of Intent (LOI) under the scheme “Development of Commercial Horticulture through production and post Harvest Management” of National Horticulture Board)
2. Category : SC 3. Gender : Male Age _28______4. Occupation : Business Man5. Promoters/beneficiary profile
i) Principal Promoter/Beneficiaryii) Othersiii) In case of companies -
Registration number & date of registration Registering authority Act under which Registered Authorized share capital _________ Paid-up share capital _________ Reserves & surplus _______
(by end of last financial year)
B. PROPOSED ACTIVITY(Cultivation/PHM/Primary Processing/Horticulture ancillary)1. Name of the Project Papaya2. Location:
Survey/Khasra No.__123/6 Village :-Khairgaon , Taluka:-Ralegaon District : Yavatmal State:- Maharashtra
3. Activity proposed under the project in details:-(a) Area under cultivation/project 100 acresName of the Crops Variety (s) Area ( acres ) No. of plants Source of Planting
type of material used)7. Feritgation(filter etc) 800000
8. Cost of drip irrigation 900000
9. Pump House 60000
10.Store 500000
11.Labour quarter 300000
12.Generator room(+generator) 800000
13.Cost of Tractor & accessories 728000
14.Land development 300000
(including digging of pit & fencing) 16. Cost of Land, if purchased 40000000 Total Fixed cost: 50184000
Working capital Cost of labour 416000
Total project cost: 50600000 Total cost of project : Rs 50600000(Rs Five corer six lakh)
Source of Finance:-
Partners Capital 12650000
Bank term Loan 37972000 Total Project cost: 50600000
Repayment Schedule for term loan:-Borrowed capital requirement is RS-37972000/-After calculation of subsidy
of25% on fixed assets Investment excluding land From NHB,the borrowed term
will be be Rs 25322000 This term loan of 25322000 will repay in next 4 years.
Generally subsidy is credited to loan account within 6 months from the date of commencement of the
project.
4) Repayment Schedule for Term Loan.Yr Op. Bal.of Loan Installment Closing
balance
Term Loan
Int.@ 13%
1 37972000 18986000 18986000 4936360
2 18986000 18986000 o 2468180
5).Gross Incentive Component under this scheme:
1) 25% Subsidy on Fixed Capital i.e. on 37972000/- 9493000=00
2) First a Years Total Interest on Term Loan = 7404540=00
Total Subsidy Component : 16897540=00
6) Schedule of Fixed Assets & Depreciation:
Particulars 1 2Opening Balance of
Assets
56958000 51262200
Less : 10% Depre. 5695800 5126220
Written down value of
Fixed Assets
51262200 46135980
7 ) Profitability analysis for First Year of the business :
Gross Margin Per Year 31500000
Total Gross Profit (A) : 31500000
Less : Indirect Expenses (B)Interest on Bank Term Loan (Exempted) 0Electricity Charges 30000Traveling Expenses 360000Salaries and RentLabour quarter
1800000
Total Indirect Expenses (D) 2190000
Net Profit E (C - D) 29310000
Add : Depreciation 5695800
Gross Cash flow 35005800
Less : Bank Installment 18986000
____________
Net Cash Flow 16019800
6 ) Debt Service Coverage Ratio (DSCR) For First Year :
Net Profit + Depreciation + Interest = --------------------------------------------------------------------
Bank Interest + Installments
16019800+5695800+4936360
= ___________________________ 4936360+18986000
= 1.114102:1
For first year of the project interest is not payable by the firm, for profitability
purpose, interest is taken here for calculation purpose. It shows, the capacity of
profit to hold fixed interest charges and loan repayment capacity. It shows fair ratio
i.e. 1.14 : 1, so business is profitable and interest & debt payment capacity of the
firm is also favorable.
7) Return on Investment Ratio (ROI) :
Net Profit = ------------------------------------------------ x 100
Total Capital Employed (Project Cost)
16019800= ---------------- x 100 50600000
= 31.65%
ROI is more than ideal ratio. I depicts that investment in this business can be
recovered in tow years of period, after that year, business will be run on owned
capital of the proprietor.
Break Even Analysis:-
It is the point of Sales level at which all the costs are recovered.
Total sales
Break even Point=------------------- X Fixed cost
Contribution
(Contribution = Total sales- variable cost)
Contribution=63000000-416000
=62584000
CBEP =( 63000000/62584000)* 50184000
= 50517576
Gives an indication regarding at what level of sale the unit will not make cash
losses - Useful Mainly in analysis of rehabilitating sick units.
I. Name of the Bank/FI from where the term loan is availed/to be availed
by the Beneficiary (Please enclose a copy of the duly filled up term loan
Application).
a) Name of Bank: State Bank of India
b) Details of Bank Branch: Savarkheda……
c) Bank Code:07102
J. Date & Amount of sanction of term
loan, if any : ______________________
K. Details of release of term loan, if any: ______________________
L. DETAILS OF LAND
I) Whether own land (ancestral) : _________________________
ii) Whether own land purchased : __100 Acres
iii)Whether leased
If so, how many years lease : _________________________
M. IMPLEMENTATION SCHEDULE OF PROPOSED ACTIVITYi) Proposed month for undertaking land development: March-Juneii) Proposed month for plantation: June-Julyiii)Expected date/month of first commercial crop: Jan-febiv)Proposed date for start of unit in case of processing:
N. MARKETING OF PRODUCE
Details of marketing tie-up (Backward/forward linkage)
O. Cost of Application Form & Scheme Brochure will be as under:
Projects costing above 50.00 lakh : Rs. 10000/-
The above prescribed cost of application form and brochure will be non- refundable.
P. Please remit the cost of application and scheme brochure by Demand Draft drawn in favour of National Horticulture Board payable at Gurgaon (Haryana) for projects costing Rs. 20.00 lakh & above and at concerned state office where project cost is below Rs. 20.00 lakh.
Name of the issuing Demand Draft No. Amount(Rs.)Bank Branch & Date
SBI 03245(4/03/10) 10000
Q. Name & address of consultant who prepared the project report (DPR).
Certified that the information/contents as above furnished by me/us in the application are true to the best of my/our knowledge & 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 rightly at any stage by the Board.
(Signature of the Beneficiary) Name & Address : .........................
iv) Duly filled up and signed bank term loan application form/bank consent letter
v) Copy of last Income Tax Return, if any.
vi) Key map of project land showing project details and land boundary details.
vii) NOC issued by Cooperative Society/Partnership Firm, if applicant is covered by Para- 5(h) of Guidelines No.1/2008.
viii) Proof of identity of applicant (refer Para of 3 Guidelines No. 1/2008.)
ix) In case project include item of 'Primary Processing' for manufacturing 'Fruit Products" covered by FPO 1955 then NOC issued by MFPI, Govt. of India be enclosed.
FORMAT-II
AFFIDAVIT
(on stamp paper of Rs. 20)
I/we Sachin Manikrao Lakade (Name of the promoter/Director son of Mr Manikrao Suryabhan Lakade.(father’s name) resident of At Khairgaon (Ka) Post. Wardh Tq Ralegaon Dist.Yavatmal (residence address) do hereby solemnly affirm and declare as under:
1. That I/we am/are individual grower/promoter/director/partner/group of growers/association of growers/proprietor of M/s Sachin M.Lakade (name of beneficiary) having its Registration no. …………………….. Registered Office at ........................................ (office address of beneficiary).
2. I hereby make application and I am duly authorized in my own right/by management vide its resolution no.---- .dated 5/03/10 …………..to apply and sign all required documents including this affidavit on behalf of company/partnership firm/cooperative society named as ………………… ; and am fully aware of the facts relating to the setting up the project at Survey No.126/3, Village.Khargaon(ka)., Tehsil Ralegaon., District Yavatmal State . Maharashtra (location of the project) for .............................. (activities to be undertaken by project) and application is being made to NHB for seeking Letter of Intent (LOI) under the scheme “Development of Commercial Horticulture through Production and Post Harvest Management”.
3. That the term and conditions of the scheme of NHB under which an application is made by the applicant have been properly read and understood by me and I affirm that the project/proposal/scheme comply with the terms and conditions of NHB and the application is made in the correct applicable scheme.
4. That the proposed activities to be undertaken by the project/proposal scheme are covered under the above scheme of NHB and no part of the scheme/infrastructure of the project is designed or assigned to be used for any activity other than the horticulture activities specified in the application at present or in the near future.
5. That the information provided in the application of Letter of Intent (LOI) is true and correct to the best of my knowledge and belief. The estimate of the cost of project/proposal/Scheme, financial viability and operating results have been worked out/computed as per the rule and generally accepted principle and norms in this regard.
6. No subsidy/grant-in-aid other than shown in application form has been availed/is to be availed by the promoters/ directors/partners/proprietors for this new project and component thereof from Central Govt. or any of its agencies Except the NHB.
7. Myself or any other promoter of Cooperative Society, Partnership Firm, Self Help Group has not availed any subsidy from NHB which has not been disclosed in the application.
8. I/we also solemnly affirm that the proposal activity in the application for LOI is a completely new activity and not a pre-existing activity or any component thereof.
In case of concealment of any facts in this regards, the Board would have right to reject my application out right at any stage.
DEPONDENT
DEPONENT VERIFICATION
Verified on solemn affirmation at ............ (place) on this ............ (date) of, .................... (month), 20 .................(year) that the content of the above affidavit are true to the best of my knowledge and belief and nothing material has been concealed.