DETAILED PROJECT REPORT

KHOYA MAKING UNIT

UNDER PMFME SCHEME

National Institute of Food Technology Entrepreneurship and Management

Ministry of Food Processing Industries

Plot No.97, Sector-56, HSIIDC, Industrial Estate, Kundli, Sonipat, Haryana-131028

Website: [Link]

Email: pmfmecell@[Link]

Call: 0130-2281089
 PM FME‐ Detailed Project Report of Khoya Making Unit

TABLE OF CONTENTS

S No. Topic Page

Number
1. Project Summary 3
2. About the Product 4-5
3. Process Flow Chart 6-7
4. Economics of the Project 8-25
4.1. Basis & Presumptions 8
4.2. Capacity, Utilisation, Production & Output 9-10
4.3. Premises/Infrastructure 10
4.4. Machinery & Equipment’s 11-13
4.5. Misc. Fixed Assets 13
4.6. Total Cost of Project 14
4.7. Means of Finance 14
4.8 Term Loan 14
4.9. Term Loan repayment & interest schedule 15-18
4.10. Working Capital Calculations 18
4.11. Salaries/Wages 19
4.12. Power Requirement 20
4.13. Depreciation Calculation 20
4.14. Repairs & Maintenance 21
4.15. Projections of Profitability Analysis 21
4.16. Break Even Point Analysis 22
4.17. Projected Balance Sheet 23
4.18. Cash- Flow Statement 24
4.19. Debt-Service Coverage Ratio 25

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 PM FME‐ Detailed Project Report of Khoya Making Unit

1. PROJECT SUMMARY
1. Name of the proposed project : Khoya Making Unit
2. Nature of proposed project : Proprietorship/Company/Partnership
3. Proposed project capacity : 108000 Kg/annum(40,45,50,55&60% capacity
utilization in 1st to 5th Year respectively)

4. Raw material : Buffalo Milk

5. Major product outputs : Khoya
6. Total project cost : Rs. 27.45 Lakh
 Land development, building & Civil : Nil
Construction
 Machinery and equipment’s : Rs. 16.81 Lakh
 Miscellaneous Fixed Assets : Rs. 3.50 Lakh
 Working capital : Rs. 7.14 Lakh
8. Means of Finance
 Subsidy (max 10lakhs) : Rs. 7.11 Lakh

 Promoter’s contribution (min10%) : Rs. 2.74 Lakh

 Term loan : Rs.11.17 Lakh

 Working Capital Requirement : Rs. 6.43 Lakh
9. Profit after Depreciation, Interest & Tax

 1styear : Rs. 1.83 Lakh

 2ndyear : Rs. 4.05 Lakh
 3rd year : Rs. 6.05 Lakh
 4th year : Rs. 8.34Lakh
 5th year : Rs. 10.79 Lakh
11. Average DSCR : Rs. 3.16
12. Term loan repayment : 5 Years with 6 months grace period

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 PM FME‐ Detailed Project Report of Khoya Making Unit

2. ABOUT THE PRODUCT

2.1. PRODUCT INTRODUCTION:

Milk plays an important role in the vegetarian diet of Indian dishes as animal carbohydrate,
protein, fat. In the Indian subcontinent, due to the higher air temperatures, the ancient Indians
developed more stable dairy products to preserve their nutritional quality. Khoa is a prominent
part of indigenous dairy products as it forms the basis of a number of sweet delicacies. Khoa is a
popular product across India and is known to be khoya, mawa, kava, pavlova, etc in different
regions. Khoa is a concentrated whole milk product produced pan condensing milk. Under the
Food Safety and Standard Regulations 2011, Khoya means a product derived either from cow,
buffalo, goat, or sheep's milk or from milk solids or from a quick-drying combination, by any
variety of names it is sold like Pindi, Danedar, Dhap, Mawa or Kava.

Uses:

Khoya also called mawa or Khoa is dried milk solids that have been evaporated by drying.
Khoya forms a foundation of almost all sweets in Indian cuisine, particularly in the northern part
of India. Khoya is mainly used to make a variety of sweets. It is also used for payasam and many
forms of halva.

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2.2. MARKET POTENTIAL:

India has the largest bovine population in the world. However, the milk production per animal
is significantly low as compared to the other major dairy producers. Moreover, nearly all of
the dairy products in India are consumed domestically, with the majority of them being sold
as fluid milk. The Indian dairy industry, therefore, has tremendous value-adding and overall
development potential. The Indian milk market reached a value of 11,360 billion INR by 2020
in terms of market size, growth, prices, segments, co-operatives, private dairy, procurement,
and distribution. The milk industry in India serves as a tool for socio-economic development
and offers profitable business opportunities. In view of this, the Government of India has
introduced different schemes and initiatives for the development of the country's dairy sector.

On the other hand, private participation in the Indian dairy sector has also increased over the
past few years. The milk industry, attracted by the size and potential of the Indian market,
enter both national and international players. Valuable products like, cheese, yoghurt,
probiotic drinks, etc. are the focus. They are also introducing innovative products keeping in
mind the specific requirements of the Indian consumers. These players are also improving
their milk procurement network which is further facilitating the development of the dairy
industry in India. Looking forward, the Indian dairy market is expected to exhibit strong
growth during the next five years.

2.3. RAW MATERIAL DESCRIPTION:

The only raw material that is required for Khoya making unit is Milk and is easily
available in the local market.

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 PM FME‐ Detailed Project Report of Khoya Making Unit

3. PROCESS FLOW CHART

 Raw milk brings to the processing plant after collection from different Milk collection units.
 The collected milk is pasteurized in order to eliminate the microbial and other contaminant to
prevent milk from spoilage.
 Now this milk is transferred in the bulk chiller to cool milk at 4°C and to maintain the
freshness of milk.
 100 liter of standard cow milk with 4.5 percent fat or 80 liters of standardized buffalo milk
with 5.5 percent fat is taken in batches and the milk is brought to a boil in the jacketed kettle.
 In order to ensure more control over the healing process and non-smoking heating, a double
jacketed kettle, steam-heated pan, or kettle is used.
 To avoid burning milk solids, the bottom and sides of the kettle are scraped and the milk is
vigorously stirred with a stainless steel stirrer while it is boiling.
 Boiling milk is done at a pressure of about 2 kg/cm2.
 Slow heating is required when the milk reaches the rabri stage to avoid solids burning on the
surface, discoloration of the product, development of burnt flavor and hard body, and coarse
texture.
 To obtain a good quality product, the rate of stirring should be increased during the final
stages.
 The final product is ready when it shows signs of sticking together
 Heating is stopped as soon as the product begins to leave the sides of the kettle and
accumulates in a pat form in the center.
 This method takes about 20-25 minutes to prepare a batch of Khoa (20 kg).
 The Khoa is now ready for packaging, marketing and further processing.

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Milk Collection

Pasteurization of milk

Transfer to bulk chiller

Transfer to double jacketed heating

kettle

Boiling of milk with continuous stirring

Slow heating when product recahes at

rabri stage

Cooling

Packaging

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 PM FME‐ Detailed Project Report of Khoya Making Unit

4. ECONOMICS OF THE PROJECT

4.1. BASIS & PRESUMPTIONS

1. Production Capacity of Khoya is 50 kg per hr. First year, Capacity has been taken @ 40%.

2. Working shift of 8 hours per day has been considered.

3. Raw Material stock is for 2 days and Finished goods Closing Stock has been taken for 5 days.

4. Credit period to Sundry Debtors has been given for 20 days.

5. Credit period by the Sundry Creditors has been provided for 7 days.

6. Depreciation and Income tax has been taken as per the Income tax Act, 1961.

7. Interest on working Capital Loan and Term loan has been taken at 11%.

8. Salary and wages rates are taken as per the Current Market Scenario.

9. Power Consumption has been taken at 14 KW.

10. Increase in sales and raw material costing has been taken @ 5% on a yearly basis.

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4.2. CAPACITY, UTILIZATION, PRODUCTION & OUTPUT

COMPUTATION OF PRODUCTION OF KHOYA

Items to be Manufactured
Khoya

Machine capacity Per hour 50 Kg

Total working Hours 8
Machine capacity Per Day 400 Kg
Working days in a month 25 Days
Working days per annum 300
Wastage Considered 10%
Raw material requirement 120000 Kg
Final Output per annum after wastage 108000 Kg
Final Product to be packed in 1 kg Packet
Number of Packets per annum 108000 1 Kg Packet

Production of Khoya
Production Capacity KG
1st year 40% 43,200
2nd year 45% 48,600
3rd year 50% 54,000
4th year 55% 59,400
5th year 60% 64,800

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Raw Material Cost

Year Capacity Rate Amount
Utilisation (per Kg) (Rs. in lacs)
1st year 40% 140.00 67.20

2nd year 45% 147.00 79.38

3rd year 50% 154.00 92.40
4th year 55% 162.00 106.92
5th year 60% 170.00 122.40

COMPUTATION OF SALE

Particulars 1st year 2nd year 3rd year 4th year 5th year
Op Stock - 720 810 900 990

Production 43,200 48,600 54,000 59,400 64,800

Less : Closing Stock 720 810 900 990 1,080
Net Sale 42,480 48,510 53,910 59,310 64,710
Sale price per packet 240.00 252.00 265.00 278.00 292.00
Sales (in Lacs) 101.95 122.25 142.86 164.88 188.95

4.3. PREMISES/INFRASTRUCTURE

The approximate total area required for complete factory setup is 2000-2500 Sq. ft. for
smooth production including storage area. It is expected that the premises will be on rental.

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4.4. MACHINERY & EQUIPMENTS

Machine Name Description Machine Image.

Milk reception This system is used for collection
system milk in order to maintain freshness
of milk

Bulk chiller The Bulk Milk Chiller is used to

keep milk cool and fresh by cooling
it to 4°C. For Dairy/Milk Collection
Centers, the Bulk Milk Chiller is the
solution for bacteria-free milk
storage.

Milk Pasteurizer Pasteurizer is used for killing

pathogenic microorganisms by
heating milk or milk products to a
specific temperature for a set period
of time without allowing
recontamination.
Khoya Making This machine is used to make
Machine delectable Khoya using steam as
heating sources.

Vacuum Vacuum packaging refers to the

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 PM FME‐ Detailed Project Report of Khoya Making Unit

packaging technique of removing air from a

machine pack prior to sealing and it predates
the use of gases as a means of food
preservation. Its principal purpose is
to remove oxygen by pulling the
packaging material into intimate
contact with the product.

Lactometer A Lactometer is used to find out the

amount of water, It works on the
principle of specific gravity of milk

Boiler Boiler is used for producing steam

which is used by Khoa making
machines

Milk Analyzer This is complete milk testing kit

used for test milk Quality i.e. SNF,
Total fat etc.

Industrial milk This equipment is used for transfer

Pump milk from one place to another
places.

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 PM FME‐ Detailed Project Report of Khoya Making Unit

Material These Equipments are used for

handling and material handling. Other
other equipments like water pumps,
Equipments weighing machine, etc are also
used.

Machine Unit Rate Price

Milk reception system (Capacity 1000 Ltr.) 1 160000 160000
Bulk chiller (Capacity 1000 Ltr.) 1 250000 250000
Milk Pasteurizer 1 275000 275000
Khoya Making Machine (Capacity 250 Ltr.) 2 135000 270000
Vacuum packaging machine 1 131000 131000
Boiler (Capacity 500-1000 Ltr.) 1 180000 180000
Milk Analyzer 1 40000 40000
Industrial milk Pump 2 12500 25000
Material handling and other Equipment’s - 350000 350000
(water pumps, trolleys, trays, bins, lactometer,
weighing machine, etc.)

Note: Total Machinery cost shall be Rs16.81 lakh including equipment’s but excluding
GST and Transportation Cost.

4.5. MISCELLANEOUS FIXED ASSETS

 Water Supply Arrangements
 Furniture & Fixtures
 Computers & Printers

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4.6. TOTAL COST OF PROJECT

COST OF PROJECT
(in Lacs)

PARTICULARS Amount

Land & Building Owned/Rented

Plant & Machinery 16.81
Miscellaneous Assets 3.50
Working capital 7.14
Total 27.45

4.7. MEANS OF FINANCE

MEANS OF FINANCE

PARTICULARS AMOUNT
Own Contribution (min 10%) 2.74
Subsidy @35%(Max. Rs 10 Lac) 7.11
Term Loan @ 55% 11.17
Working Capital (Bank Finance) 6.43
Total 27.45

4.8. TERM LOAN: Term loan of Rs. 11.17 Lakh is required for project cost of
Rs. 27.45 Lakh

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4.9. TERM LOAN REPAYMENT& INTEREST SCHEDULE

REPAYMENT SCHEDULE OF TERM LOAN

Interest 11.00%
Closing
Year Particulars Amount Addition Total Interest Repayment Balance
1st Opening Balance

1st month - 11.17 11.17 - - 11.17

2nd month 11.17 - 11.17 0.10 - 11.17

3rd month 11.17 - 11.17 0.10 - 11.17

4th month 11.17 - 11.17 0.10 11.17

5th month 11.17 - 11.17 0.10 11.17

6th month 11.17 - 11.17 0.10 11.17

7th month 11.17 - 11.17 0.10 0.21 10.96

8th month 10.96 - 10.96 0.10 0.21 10.76

9th month 10.76 - 10.76 0.10 0.21 10.55

10th month 10.55 - 10.55 0.10 0.21 10.34

11th month 10.34 - 10.34 0.09 0.21 10.14

12th month 10.14 - 10.14 0.09 0.21 9.93

1.10 1.24
2nd Opening Balance

1st month 9.93 - 9.93 0.09 0.21 9.72

2nd month 9.72 - 9.72 0.09 0.21 9.52

3rd month 9.52 - 9.52 0.09 0.21 9.31

4th month 9.31 - 9.31 0.09 0.21 9.10

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 PM FME‐ Detailed Project Report of Khoya Making Unit

5th month 9.10 - 9.10 0.08 0.21 8.90

6th month 8.90 - 8.90 0.08 0.21 8.69

7th month 8.69 - 8.69 0.08 0.21 8.48

8th month 8.48 - 8.48 0.08 0.21 8.27

9th month 8.27 - 8.27 0.08 0.21 8.07

10th month 8.07 - 8.07 0.07 0.21 7.86

11th month 7.86 - 7.86 0.07 0.21 7.65

12th month 7.65 - 7.65 0.07 0.21 7.45

0.97 2.48
3rd Opening Balance

1st month 7.45 - 7.45 0.07 0.21 7.24

2nd month 7.24 - 7.24 0.07 0.21 7.03

3rd month 7.03 - 7.03 0.06 0.21 6.83

4th month 6.83 - 6.83 0.06 0.21 6.62

5th month 6.62 - 6.62 0.06 0.21 6.41

6th month 6.41 - 6.41 0.06 0.21 6.21

7th month 6.21 - 6.21 0.06 0.21 6.00

8th month 6.00 - 6.00 0.05 0.21 5.79

9th month 5.79 - 5.79 0.05 0.21 5.59

10th month 5.59 - 5.59 0.05 0.21 5.38

11th month 5.38 - 5.38 0.05 0.21 5.17

12th month 5.17 - 5.17 0.05 0.21 4.96

0.69 2.48
4th Opening Balance
1st month 4.96 - 0.05 0.21 4.76

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4.96

2nd month 4.76 - 4.76 0.04 0.21 4.55

3rd month 4.55 - 4.55 0.04 0.21 4.34

4th month 4.34 - 4.34 0.04 0.21 4.14

5th month 4.14 - 4.14 0.04 0.21 3.93

6th month 3.93 - 3.93 0.04 0.21 3.72

7th month 3.72 - 3.72 0.03 0.21 3.52

8th month 3.52 - 3.52 0.03 0.21 3.31

9th month 3.31 - 3.31 0.03 0.21 3.10

10th month 3.10 - 3.10 0.03 0.21 2.90

11th month 2.90 - 2.90 0.03 0.21 2.69

12th month 2.69 - 2.69 0.02 0.21 2.48

0.42 2.48
5th Opening Balance

1st month 2.48 - 2.48 0.02 0.21 2.28

2nd month 2.28 - 2.28 0.02 0.21 2.07

3rd month 2.07 - 2.07 0.02 0.21 1.86

4th month 1.86 - 1.86 0.02 0.21 1.65

5th month 1.65 - 1.65 0.02 0.21 1.45

6th month 1.45 - 1.45 0.01 0.21 1.24

7th month 1.24 - 1.24 0.01 0.21 1.03

8th month 1.03 - 1.03 0.01 0.21 0.83

9th month 0.83 - 0.83 0.01 0.21 0.62

10th month 0.62 - 0.62 0.01 0.21 0.41

11th month 0.41 - 0.00 0.21 0.21

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0.41

12th month 0.21 - 0.21 0.00 0.21 -

0.15 2.48
DOOR TO DOOR 60 MONTHS
MORATORIUM
PERIOD 6 MONTHS
REPAYMENT PERIOD 54 MONTHS

4.10. WORKING CAPITAL CALCULATIONS

COMPUTATION OF CLOSING STOCK & WORKING CAPITAL (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Finished Goods
1.47 1.71 1.97 2.26 2.58

Raw Material
0.45 0.53 0.62 0.71 0.82
Closing Stock 1.92 2.24 2.59 2.98 3.40

COMPUTATION OF WORKING CAPITAL REQUIREMENT

TRADITIONAL METHOD (in Lacs)
Particulars Amount Own Margin Bank Finance
Finished Goods & Raw Material 1.92
Less : Creditors 1.57
Paid stock 0.35 10% 0.03 90% 0.31
Sundry Debtors 6.80 10% 0.68 90% 6.12
7.14 0.71 6.43

MPBF 6.43
WORKING CAPITAL LIMIT DEMAND ( from Bank) 6.43
Working Capital Margin 0.71

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4.11. SALARY & WAGES

BREAK UP OF LABOUR CHARGES

Particulars Wages No of Total

Rs. per Month Employees Salary

Plant Operator 14,000 2 28,000

Supervisor 16,000 1 16,000
Skilled (in thousand rupees) 12,000 2 24,000
Unskilled (in thousand rupees) 7,000 2 14,000
Total salary per month 82,000
Total annual labour charges (in lacs) 9.84

BREAK UP OF STAFF SALARY CHARGES

Particulars Salary No of Total

Rs. per Month Employees Salary
Administrative Staff 8,000 2 16,000
Manager 18,000 1 18,000
Accountant 15,000 1 15,000
Total salary per month 49,000
Total annual Staff charges (in lacs) 5.88

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4.12 POWER REQUIREMENT

Utility Charges (per month)

Particulars value Description
Power connection required 14 KWH
consumption per day 112 units

Consumption per month 2,800 units

Rate per Unit 10 Rs.
power Bill per month 28,000 Rs.

4.13. DEPRECIATION CALCULATION

COMPUTATION OF DEPRECIATION (in Lacs)

Description Plant & Machinery Miss. Assets TOTAL
Rate of Depreciation 15.00% 10.00%
Opening Balance - - -

Addition 16.81 3.50 20.31

Total 16.81 3.50 20.31
Less : Depreciation 2.52 0.35 2.87
WDV at end of Year 14.29 3.15 17.44
Additions During The Year - - -
Total 14.29 3.15 17.44
Less : Depreciation 2.14 0.32 2.46
WDV at end of Year 12.15 2.84 14.98
Additions During The Year - - -
Total 12.15 2.84 14.98
Less : Depreciation 1.82 0.28 2.11
WDV at end of Year 10.32 2.55 12.87
Additions During The Year - - -
Total 10.32 2.55 12.87
Less : Depreciation 1.55 0.26 1.80
WDV at end of Year 8.77 2.30 11.07
Additions During The Year - - -
Total 8.77 2.30 11.07
Less : Depreciation 1.32 0.23 1.55
WDV at end of Year 7.46 2.07 9.53

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4.14. REPAIR & MAINTENANCE: Repair & Maintenance is 2.5 % of Gross Sale.

4.15. PROJECTIONS OF PROFITABILITY ANALYSIS

PROJECTED PROFITABILITY STATEMENT (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Capacity Utilisation % 40% 45% 50% 55% 60%

SALES
Gross Sale
Khoya 101.95 122.25 142.86 164.88 188.95

Total 101.95 122.25 142.86 164.88 188.95

COST OF SALES
Raw Material Consumed 67.20 79.38 92.40 106.92 122.40
Electricity Expenses 3.36 3.86 4.44 5.11 5.62
Depreciation 2.87 2.46 2.11 1.80 1.55
Wages & labour 9.84 11.32 12.90 14.58 16.76
Repair & maintenance 2.55 3.06 3.57 4.12 4.72
Packaging 2.24 2.44 2.86 3.30 3.78
Cost of Production 88.06 102.52 118.28 135.83 154.83
Add: Opening Stock /WIP - 1.47 1.71 1.97 2.26
Less: Closing Stock /WIP 1.47 1.71 1.97 2.26 2.58
Cost of Sales 86.60 102.28 118.02 135.54 154.52
GROSS PROFIT 15.36 19.97 24.85 29.34 34.44
15.06% 16.33% 17.39% 17.80% 18.22%
Salary to Staff 5.88 7.11 8.89 9.78 10.96
Interest on Term Loan 1.10 0.97 0.69 0.42 0.15
Interest on working Capital 0.71 0.71 0.71 0.71 0.71
Rent 3.60 3.96 4.36 4.79 5.27
selling & adm exp 2.24 3.17 3.71 4.27 4.57
TOTAL 13.53 15.92 18.37 19.97 21.66
NET PROFIT 1.83 4.05 6.48 9.37 12.78
1.79% 3.31% 4.54% 5.68% 6.76%
Taxation - - 0.43 1.03 1.99
PROFIT (After Tax) 1.83 4.05 6.05 8.34 10.79

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4.16. BREAK EVEN POINT ANALYSIS

BREAK EVEN POINT ANALYSIS

Year I II III IV V

Net Sales & Other Income 101.95 122.25 142.86 164.88 188.95
Less : Op. WIP Goods - 1.47 1.71 1.97 2.26
Add : Cl. WIP Goods 1.47 1.71 1.97 2.26 2.58

Total Sales 103.42 122.49 143.12 165.17 189.27

Variable & Semi Variable Exp.

Raw Material Consumed 67.20 79.38 92.40 106.92 122.40
Electricity Exp/Coal Consumption at 85% 2.86 3.28 3.78 4.34 4.78
Wages & Salary at 60% 9.43 11.06 13.08 14.62 16.63
Selling & adminstrative Expenses 80% 1.79 2.53 2.97 3.42 3.66
Interest on working Capital 0.707308 0.707308 0.707308 0.707308 0.707308
Repair & maintenance 2.55 3.06 3.57 4.12 4.72
Packaging 2.24 2.44 2.86 3.30 3.78
Total Variable & Semi Variable Exp 86.78 102.46 119.36 137.42 156.68
Contribution 16.64 20.02 23.76 27.75 32.59

Fixed & Semi Fixed Expenses

Electricity Exp/Coal Consumption at 15% 0.50 0.58 0.67 0.77 0.84
Wages & Salary at 40% 6.29 7.37 8.72 9.74 11.09
Interest on Term Loan 1.10 0.97 0.69 0.42 0.15
Depreciation 2.87 2.46 2.11 1.80 1.55
Selling & adminstrative Expenses 20% 0.45 0.63 0.74 0.85 0.91
Rent 3.60 3.96 4.36 4.79 5.27
Total Fixed Expenses 14.81 15.97 17.28 18.38 19.81

Capacity Utilization 40% 45% 50% 55% 60%

OPERATING PROFIT 1.83 4.05 6.48 9.37 12.78
BREAK EVEN POINT 36% 36% 36% 36% 36%
BREAK EVEN SALES 92.06 97.70 104.09 109.40 115.05

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4.17. PROJECTED BALANCE SHEET

PROJECTED BALANCE SHEET (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Liabilities

Capital
opening balance 9.67 11.22 13.27 15.61
Add:- Own Capital 2.74
Add:- Retained Profit 1.83 4.05 6.05 8.34 10.79
Less:- Drawings 2.00 2.50 4.00 6.00 8.00
Subsidy/grant 7.11
Closing Balance 9.67 11.22 13.27 15.61 18.40
Term Loan 9.93 7.45 4.96 2.48 -
Working Capital Limit 6.43 6.43 6.43 6.43 6.43
Sundry Creditors 1.57 1.85 2.16 2.49 2.86
Provisions & Other Liab 0.40 0.50 0.60 0.72 0.86
TOTAL : 28.00 27.45 27.42 27.74 28.55
Assets
Fixed Assets ( Gross) 20.31 20.31 20.31 20.31 20.31
Gross Dep. 2.87 5.33 7.44 9.24 10.78
Net Fixed Assets 17.44 14.98 12.87 11.07 9.53

Current Assets
Sundry Debtors 6.80 8.15 9.52 10.99 12.60
Stock in Hand 1.92 2.24 2.59 2.98 3.40
Cash and Bank 1.85 2.09 2.44 2.70 3.03
TOTAL : 28.00 27.45 27.42 27.74 28.55

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4.18. CASH FLOW STATEMENT

PROJECTED CASH FLOW STATEMENT (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
SOURCES OF FUND

Own Margin 2.74

Net Profit 1.83 4.05 6.48 9.37 12.78
Depriciation & Exp. W/off 2.87 2.46 2.11 1.80 1.55
Increase in Cash Credit 6.43 - - - -
Increase In Term Loan 11.17 - - - -
Increase in Creditors 1.57 0.28 0.30 0.34 0.36
Increase in Provisions & Oth lib 0.40 0.10 0.10 0.12 0.14
Sunsidy/grant 7.11
TOTAL : 34.11 6.89 8.99 11.63 14.83
APPLICATION OF FUND
Increase in Fixed Assets 20.31
Increase in Stock 1.92 0.32 0.35 0.39 0.42
Increase in Debtors 6.80 1.35 1.37 1.47 1.60
Repayment of Term Loan 1.24 2.48 2.48 2.48 2.48

Drawings 2.00 2.50 4.00 6.00 8.00

Taxation - - 0.43 1.03 1.99
TOTAL : 32.26 6.66 8.64 11.37 14.50

Opening Cash & Bank Balance - 1.85 2.09 2.44 2.70

Add : Surplus 1.85 0.24 0.35 0.26 0.33
Closing Cash & Bank Balance 1.85 2.09 2.44 2.70 3.03

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 PM FME‐ Detailed Project Report of Khoya Making Unit

4.19. DEBT SERVICE COVERAGE RATIO

CALCULATION OF D.S.C.R

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

CASH ACCRUALS 4.70 6.51 8.15 10.14 12.33

Interest on Term Loan 1.10 0.97 0.69 0.42 0.15
Total 5.80 7.48 8.85 10.56 12.48

REPAYMENT
Instalment of Term Loan 1.24 2.48 2.48 2.48 2.48
Interest on Term Loan 1.10 0.97 0.69 0.42 0.15

Total 2.34 3.45 3.18 2.90 2.63

DEBT SERVICE COVERAGE RATIO 2.48 2.17 2.79 3.64 4.75

AVERAGE D.S.C.R. 3.16

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