RASHMI AGRI CORPORATION

PROJECTREPORT
ON SEED PROCESSING &
RICE MILLING

Office:-1362, Dhabaleswar Lane, Gurujanga, Khordha

(Odisha)-752057
Processing Plant:-Rajpath services, NH-5, Gangapada, Khordha
(Odisha) – 752054

Prepared By: - Ram Kishan, M.D.

Rashmi Agri Corporation, Khordha
RASHMI AGRI CORPORATION

Table of Contents
Project at a Glance................................................................................................................1
Name & Address of Promoters..............................................................................................2
Project Feasibility Ratio........................................................................................................3
Project Feasibility Graph.......................................................................................................4
Splitup of Expense...........................................................................................................................4
Revenue V/S Expense......................................................................................................................4
CR, QR, ICR & DSCR..........................................................................................................................5
Gross & Net Profit Percentage.........................................................................................................5

Company Profile...................................................................................................................6
Project Profile.......................................................................................................................7
Seed Processing Plant......................................................................................................................7
Introduction......................................................................................................................................7
Advantages of seed processing.........................................................................................................7
Objectives.........................................................................................................................................7
Raw Material Availability..................................................................................................................8
Market Opportunities.......................................................................................................................8
Rice Milling Plant.............................................................................................................................8
Introduction......................................................................................................................................8
Objectives.........................................................................................................................................9
Raw Material Availability..................................................................................................................9
Market Opportunities.......................................................................................................................9

Project Description..............................................................................................................10
Seed Processing Plant....................................................................................................................10
Capacity..........................................................................................................................................10
Seed Processing Process.................................................................................................................10
Rice Milling Plant...........................................................................................................................11
Product and its uses........................................................................................................................11
Capacity..........................................................................................................................................11
Manufacturing Process...................................................................................................................11

Plant Machinery / Equipments............................................................................................12

Seed Processing Plant....................................................................................................................12
Rice Milling Plant...........................................................................................................................12

Project Cost.........................................................................................................................13
RASHMI AGRI CORPORATION

Working Capital Computation.............................................................................................13

Annual Sales / Revenue.......................................................................................................13
Annual Expenses.................................................................................................................14
Application of Fund.............................................................................................................14
Means of Finance................................................................................................................14
Profitability Statement........................................................................................................15
Cash flow statement...........................................................................................................16
Balance sheet......................................................................................................................17
Repayment of Term loan.....................................................................................................18
Debt Service Coverage Ratio...............................................................................................20
Break Even Point Analysis...................................................................................................21
Depreciation.......................................................................................................................22
Other Financial Indicator.....................................................................................................22
Computation of Production and Revenue............................................................................23
Repair and Maintenance Cost.............................................................................................24
Preliminary and pre-operative Expenses.............................................................................24
Power and Utility................................................................................................................24
Cost of Plant Machinery......................................................................................................25
Assumption.........................................................................................................................26
Conclusion..........................................................................................................................27
RASHMI AGRI CORPORATION

Project at a Glance
NAME OF UNIT - RASHMI AGRI CORPORATION

ADDRESS OF UNIT - Office:-1362, Dhabaleswar Lane,

Gurujanga, Khordha (Odisha)-752057,

Processing Plant: - Rajpath services, NH-5, Gangapada,

Khordha (Odisha)-752054

SEED PROCESSING & FOOD

Activity PRODUCTION
Email [Link]@[Link]
Phone 8897966842,9438731766
Constitution Partnership
Scheme SME
Number of employment 15
Total project cost 6,478,394.00
Fixed Capital 3,389,838.00
Working Capital 3,088,556.00
Total Bank loan 4,858,795.50
Promoter(s)
contribution 1,619,598.50
Term loan 2,542,378.50 Interest:12.00 %
Working capital loan 2,316,417.00 Interest:14.00 %

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Name & Address of Promoters

Name RAM KISHAN
PRUSTY PALACE, MELAN PADIA, GURUJANGA DISTRICT
Address KHORDHA -(ODISHA)-752057
Phone 8897966842
Date of birth 04-06-1958
Designation MANAGING PARTNER
Category OBC
E-mail [Link]@[Link]
Name SAMIR KUMAR SAHOO
1362,DHABALESWAR LANE, GURUJANGA, DISTRICT -
Address KHORDHA (ODISHA)- 752057
Phone 9438731766
Date of birth 11-09-1973
Designation PARTNER
Category OBC
E-mail [Link]@[Link]
Name SUDESH
PRUSTY PALACE, MELAN PADIA, GURUJANGA DISTRICT
Address KHORDHA -(ODISHA)-752057
Phone 8826266842
Date of birth 15-06-1965
Designation PARTNER
Category OBC
E-mail [Link]@[Link]

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Project Feasibility Ratio

Debt Service Coverage Ratio (Average): 8.46
Current ratio (Average) : 5.41
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Current ratio 1.95 2.60 3.58 4.72 6.13 8.13 10.80
Quick ratio 1.09 1.71 2.65 3.75 5.11 7.07 9.74
Interest coverage
ratio 5.90 6.89 9.14 12.06 15.95 21.35 31.54
Debt equity ratio 1.471 0.904 0.542 0.347 0.224 0.138 0.083
TOL/TNW 1.66 1.07 0.63 0.44 0.30 0.16 0.10
DSCR 4.70 5.15 6.39 7.79 9.38 11.17 14.67
Gross profit Sales 28.07 28.24 31.32 34.26 37.06 39.74 44.73
Percentage % % % % % % %
Net profit Sales 11.49 12.41 15.25 17.88 20.34 22.63 26.81
Percentage % % % % % % %
Return On Capital
Employed 0.48 0.45 0.46 0.45 0.43 0.40 0.39

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Project Feasibility Graph

Splitup of Expense

4%
9% 6% 1%
1%

4%

76%

Cost of Raw Seed Packing Material for seed & rice Salary of Staff & labours
Repairs and maintenance Power & Utility Rent of godown
Insurance of Machinery & Stock

Revenue V/S Expense

300
Revenue Expense
250

200

150

100

50

0
1 2 3 4 5 6 7

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35
45.00% Gross profit Sales Percentage
Current ratio
40.00%
30 Net profit
Quick ratio Sales Percentage
Interest coverage ratio
35.00%
25 Debit Service Coverage Ratio
30.00%
20

25.00%
15
20.00%
10
15.00%
5
10.00%
0
5.00% Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

0.00%
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

CR, QR, ICR & DSCR

Gross & Net Profit Percentage

Company Profile
The Rashmi Agri Corporation is new startup in agriculture sector. It is a partnership
Firm a registered in MSME with registration [Link]-OD-19-0000867. The Firm
is also registered with Ministry of commerce and Industry, Department of commerce,
Directorate General of Foreign Trade for Export and Import with IEC - ABAFR9365G.

The promoter of RAC is Shri Ram Kishan who is competent to run Agri-business. He
did [Link]. & AH (Hounor) followed by [Link]. in Horticulture from Govind Ballabh
Pant University of Agriculture & Technology, Pantnagar in [Link] serving six
month in WIMCO Ltd, he joined National Seeds Corporation Ltd. (NSC) in June, 1984
and worked there till his retirement in June, [Link] worked in different capacity in
NSC and having the rich experience in production, processing, quality control and

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marketing of different kinds of seed. We are having a strong cluster of farmers to

produce the superior quality of seed.

The production & marketing division is headed by Shri Samir Kumar Sahoo who is
associated with the farmers since long back and having vast experience in product
development in agriculture sector.

We are also backed by a dedicated technical team to guide the farmers in producing
the superior quality of seed. The seed processing is also supervised by technical
expert in the field. Apart from the seed production and supply of superior quality
seed, we also facilitate to the farmers to get the best & tested other inputs also. Our
approach is based on popularizing the improved varieties of food crops that are
adaptive to the climate change, recommended for general cultivation, and released
by the National Agricultural Research System (NARS).

The Rashmi Agri Corporation is engaged in production of superior quality seeds of

improved varieties of different crops covering Cereals, Pulses, Oil seeds and
vegetables. We also deal with supply of bio- fertilizers, bio-pesticides and bio-
insecticides to the farmers for organic farming with tie-up to other manufacturing
company.

Project Profile
Seed Processing Plant
Introduction
Seed has been an important agricultural commodity since the first crop plant was
domesticated by pre-historic man. For thousands of years, man cleaned seed of his food
crops by winnowing. This is still an important process, but it is no longer adequate to
supply the kind of seed needed by farmer.

Seed processing is a vital part of the seed production needed to move the improved
genetic materials of the plant breeder into commercial channels for feeding the rapidly
expanding world population. The farmer must get the quality seed that is free from all
undesired materials because farmer’s entire crop depends on it.

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Seed can seldom be planted in the condition in which it comes from the growers. In fact,
many seed lots contain weed or crop seed or inert material that make them unfit for sale
without processing. Crop seed also frequently have stems, awns, clusters or other
structures, which prevent from flowing through the drill freely. Seed processing is that
segment of the seed industry responsible for upgrading seed, improving planting
condition of seed, and applying chemical protectants to the seed.

Advantages of seed processing:

Make possible more uniform planting rates by proper sizing

Improve seed marketing by improving seed quality

Prevent spread of weed seed

Prevent crops from disease by applying chemical protectants

Reduces seed losses by drying

Facilitate uniform marketing by providing storage from harvest time until the seed is
needed for planting.

Objectives
The Government has accorded high priority to the upliftment of rural economy through
the development of agricultural sector and various schemes are being implemented by the
Government to increase the income of the farmers. The Seed being vital input to
agriculture, continuous efforts are being made to ensure availability of quality seeds to
farmers in order to sustain the agricultural development. In the present situation the
demand of quality seeds is so high that the government agency alone can’t meet the
demand of quality seeds, which would be required to fill by the private seed producers. In
view of above, the project has been formulated with the objective to produce quality seed
of paddy through scientific methods and adopting appropriate processing through
establishment of seed processing plant.

Raw Material Availability

Panting material for the certified seed production programme is foundation seed, which
would be available from KVKs/University/SSC/NSC without any problem. The certified
seed production would be taken on contracted basis in the farmer’s field and will be used
as raw seed for seed processing plant AND further sale to the farmers.

Market Opportunities
There is huge demand of certified seed as the Govt. agencies are not able to fulfill the
requirement of certified seed. Setting up seed processing plant will allow farmers to
engage in seed production & there by fetch more profits than the production of grain. The
seed produced and processed by the company will be made available to the farmers at

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cheaper rate. The existing infrastructure for seed processing is not enough to meet current
and future demand. The new entrants have good scope to start this business

Rice Milling Plant

Introduction
Agriculture is the main occupation of the rural population in Odisha. Among various crops,
rice is the principal food crop of the State. Odisha was the 7th largest producer of rice in the
country with an annual production of around 65.30 Lakh Tonnes during 2017-18. The rice
is obtained after hulling/ dehusking of paddy in a rice mill. The paddy comprises of 20%
rice hull or husk, 11% bran layers, and 69% starchy endosperm. Paddy in its raw form
cannot be consumed by human beings. It needs to be suitably processed for obtaining rice.
Rice milling is the process of removal of husk and bran layer from the paddy to produce
whole white rice kernel. The rice should be free from impurities and should contain
minimum number of broken grains

The rice available in the market is of two qualities i.e. raw and parboiled. The raw rice is
obtained by simply milling the raw paddy, while parboiled variety is the one in which
the paddy is first partly boiled and dried before milling. Par boiled rice is preferred in
some parts of the country such as Assam, West Bengal, Orissa, Tamilnadu, Kerala and
some parts of Bihar etc. In other state raw rice is consumed.
The process of milling for both is same except the boiling part of paddy. The milling
process provides whole rice as the main product and Husk, Bran and Broken rice as Bye
products. Husk is sold in the market as a fuel, Bran for extraction of Oil and broken rice is
consumed as a cheaper variety of rice.
In India, rice milling business has a turnover of more than Rs.25, 500 crore per annum.
Among other states, West Bengal, Punjab, Haryana, Andhra Pradesh etc. also produce large
quantities of rice.

Objectives
The commercial rice milling will have a following objective
• Production of edible rice free of husks, stones and other foreign material
• Minimization of grain breakage and maximization of whole rice recovery

Raw Material Availability

The rice production in the State has shown remarkable growth in production. It has been
grown over an area of 5 million hectare with 15 Million tons of production during the year. As
a result of new agriculture strategy, like 'High Yield Varieties Programme’ the production
of paddy has seen appreciable growth in production over the years.

Market Opportunities
Setting up rice mill will allow farmers to engage in value addition & more profits. Rice bran is a
byproduct obtained during rice milling process, which is a very good source of edible oil.

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Rice is in great demand both in house hold consumption and also in Hotels, restaurant,
canteens, etc. A major share of crop production can easily be sold to FCI or other
procurement agency at MSP.

Project Description
Seed Processing Plant
Capacity
The capacity of this model is considered as 20 Qtls. (2.00 MT) per hour on wheat basis
which will be reduced to 70% in case of Paddy and 14 qtls of Paddy may be processed per
hour. The plant will operate for 07 hours per day in one shift (08 hrs minus 01 hr for lunch
etc.). Thus, in a day about 100 qtls of Paddy will be processed.

Seed Processing Process

Seed processing plant is designed based on the characteristics of seed grain and the
impurities present in it, which need to be separated. Capacity of plant is known by the

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capacity of the seed cleaner which is the basic machine in the seed processing plant. Other
machines, which work on the principle of separating the material, based on difference in
characteristics of good seed and impurities are included in the plant. Capacity of such
machines are kept matching with that of cleaner to have effective utilization.

Brief descriptions of the processing machines used in a seed processing plant are given
hereunder.

Scalper/Pre-cleaner:- The seed contains contaminants of various kinds as it comes into

the processing plant especially if it has not been harvested and threshed mechanically. To
get the seed into condition to flow easily through the processing operations, to improve
capacity and separating precision during processing, and to prevent loss of quality, seed is
usually prepared for processing by sending them through one or more special machines or
processes. A scalper can be used to rough clean seed when trash content is high. The
scalper basically consists of a vibrating or rotating screen or sieve. The screen
perforations are large enough to allow the rough seed to pass through readily while large
inert material is scalped off and removed from the seed lot.

Cleaner:-The air screen cleaner is the basic machine in almost all seed processing plants.
A common air screen cleaner for processing seed uses two air blasts and two screens. The
first air system removes dust and light chaff before the seed reaches the first screen. The
first screen allows the good seed to drop onto the second screen. The large foreign
material rides over the first screen and is discarded. The second screen is a grading
screen.

Specific gravity separator: - Seed of same size and general shape can often be separated
because they differ in specific gravity. This difference is very useful in removing light
immature seed or heavy sand and rocks to improve the purity and germination of crop
seed.

Indented cylinder: - Seed of the same width and thickness can be separated by taking
advantages of difference of length. Indented cylinder can do very precise separation by
using length difference. The indented cylinder separator is a rotating almost horizontal
cylinder with a movable horizontal separating through mounted inside it. Thousand of half
round indents line are inside surface of indented cylinder.

Elevator:- Single leg bucket elevator consisting of receiving hopper, boot, bucket, belt,
boot pulley, leg, head pulley, motor, drive and discharge spout will be used for conveying
seed from one machine to another machine. It will lift the seed from the ground vertically
upward and discharge it from top to the different machines. This type of elevating
machines requires less power and floor area.

Other Machines: - Weighing, Packing, conveyor Belt and stitching machine/Bag closer are
required.

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Rice Milling Plant

Product and its uses
Rice is a staple food for the majority of population in India. Rice bran is a by-product of the
rice milling process and it contains various antioxidants that impart beneficial effects on
human health. This can be utilized for the production of oil and as animal feed. The rice
bran oil is a niche product and is being promoted as healthy oil. The husk is having high
calorific value and used as a source of energy. The husk is a delicacy for horses and is in
good demand for animal feed.

Capacity
The rice mill works on economies of scale model. The decision about the capacity of rice
milling plant depends upon number of factors like market demand, availability of
manpower etc. The capacity of this model is considered as 10 Qtls. (1.00 MT) per hour.
The plant will operate for 07 hours per day in one shift (08 hrs minus 01 hr for lunch etc.).
Thus, in a day 70 qtls of Paddy will be milled and a quantity of 43.40 qtls (62% of quantity
milled) of head rice 4.90 broken rice (7% of quantity milled) will be produced.

Manufacturing Process
Generally three types of methods are used for milling of paddy rice viz. one step, two step
and multi stage process. In modern commercial mill, the multi stage process is adopted.
Efficiency of milling depends on the variety of paddy, quality of equipment, operator skill
etc. Multi stage process of rice milling involves following steps:

Cleaning: -Removal of foreign materials like straw, weed seeds, soil, etc. from paddy prior
to milling.

Destoning:- Removing small stones from the paddy prior to milling process. It is done by
using the destoner.

Dehusking/Dehulling: - It is a process of removing the husk or outer layer of paddy to

produce brown rice.

Whitening or Polishing: - The white rice is obtained from brown rice using the process of
abrasion or friction between two surfaces.

Separation: - Separation of rice from broken rice is carried out using different types of
graders and separator.

Bagging: - The milled rice is packed in different quantity according to the requirement

Plant Machinery / Equipments

The following machinery is required for seed processing plant and rice milling plant.

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Seed Processing Plant

Pre-Cleaner

Seed Grader

Indented cylinder seed Grader

Specific Gravity Separator

[Link]

Rice Milling Plant

Paddy Cleaner

De-Stoner

Paddy Husker/Huller

Rice whitener/Polisher

Rice Grader

Project Cost
Sl. No Item Amount
1 Seed Processing & Rice Milling Machinery 28,65,970
2 Preliminary & Pre-operative expenses 1,25,000
3 Other miscellaneous assets 2,43,400
4 Contingency 1,55,468
5 Working Capital 30,88,556
  Total 64,78,394

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Working Capital Computation

Sl. No Item Amount
Sl. No
1 Item
Consumables / stock in hand Amount
2,234,265
12 Rent of godown
Working expense. 720,000.00
558,566
23 Salary of Staff & labours
Receivables/Sundry debtors 1,087,500.00
589,990
34 Repairs
Payables and maintenance 161,004.00
294,265
45 Powerworking
Total & Utility capital 473,148.00
3,088,556
56 Insurance
Own of Machinery & Stock
Contribution 75,000.00
772,139
67 Working
Cost of Rawcapital
Seed loan 2,316,417
9,699,996.00
7 Packing Material for seed & rice 523,128.00
Total 12,739,776.00

Annual Sales / Revenue

Sl. No Item Sales Details Total
1 Seeds 39000 x 212.5 Ton / Year 8,287,500.00
2 Rice 50000 x 150 Ton / Year 7,500,000.00
Total 15,787,500.00

The meager amount will be received by selling of screen rejection and husk of
paddy which has not been considered as revenue from operation.

Annual Expenses

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Application of Fund
Sl. No Item Amount
1 Seed Processing & Rice Milling Machinery 2,865,970.00
2 Preliminary & Pre-operative expenses 125,000.00
3 Other miscellaneous assets 243,400.00
4 Contingency 155,468.00
Total Investment 3,389,838.00
Total Subsidy 0.00
Net Investment 3,389,838.00

Means of Finance
Sl. No Item Amount
1 Term Loan 2,542,378.50
2 Working capital Loan 2,316,417.00
3 Total loan 4,858,795.50
4 Term Loan contribution 847,459.50
5 Working capital contribution 772,139.00

Profitability Statement
All figures are in lakhs

Year Year Year Year Year

1 2 3 4 5 Year 6 Year 7
Revenue from operation
Seeds 82.88 91.16 100.28 110.31 121.34 133.47 146.82

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Rice 75.00 82.50 90.75 99.83 109.81 120.79 132.87

Add :
Closing stock 22.34 23.46 24.63 25.86 27.16 28.52 28.52
Total 180.22 197.12 215.66 236.00 258.30 282.77 308.20
Less :
Opening stock 16.45 22.34 23.46 24.63 25.86 27.16 28.52
Cost of Raw Seed 97.00 101.85 106.94 112.29 117.90 123.80 123.80
Packing Material for seed &
rice 5.23 5.49 5.77 6.06 6.36 6.68 6.68
Salary of Staff & labours 10.88 11.42 11.99 12.59 13.22 13.88 13.88
Repairs and maintenance 1.61 1.77 1.95 2.14 2.36 2.59 2.59
Power & Utility 4.73 5.20 5.73 6.30 6.93 7.62 7.62
Total 135.90 148.08 155.83 164.01 172.63 181.73 183.08
Gross profit 44.32 49.04 59.83 71.99 85.67 101.05 125.12
Less :
Rent of godown 7.20 7.92 8.71 9.58 10.54 11.60 11.60
Insurance of Machinery &
Stock 0.75 0.83 0.91 1.00 1.10 1.21 1.21
Total 7.95 8.75 9.62 10.58 11.64 12.80 12.80
Depreciation 4.30 3.65 3.11 2.64 2.24 1.91 1.62
Interest on TL 2.92 2.60 2.25 1.85 1.40 0.89 0.32
Interest on WC 3.24 3.24 3.24 3.24 3.24 3.24 3.24
Total 18.41 18.24 18.22 18.31 18.52 18.84 17.99
Profit before tax 25.91 30.80 41.61 53.68 67.15 82.21 107.13
Income Tax 7.77 9.24 12.48 16.10 20.14 24.66 32.14
Profit after tax 18.14 21.56 29.13 37.57 47.00 57.54 74.99

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Cash flow statement

Pre
operative
Cash Inflow period Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Capital 8.47 7.72 0 0 0 0 0 0
Subsidy 0 0 0 0 0 0 0 0
Term loan 25.42 0 0 0 0 0 0 0
Profit before
tax with
interest 0 32.07 36.64 47.10 58.77 71.79 86.34 110.69
Increase in
WC loan 0 23.16 0 0 0 0 0 0
Depreciation 0 4.30 3.65 3.11 2.64 2.24 1.91 1.62
Increase in
Current
liability 0 2.94 0.15 0.15 0.16 0.17 0.18 0
Total Cash
Inflow 33.90 70.20 40.44 50.36 61.57 74.20 88.42 112.31
Cash Outflow
Fixed Assets 33.90 0 0 0 0 0 0 0
Increase in 28.24 1.41 1.48 1.56 1.63 1.72 0
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Current asset
Interest on TL 0 2.92 2.60 2.25 1.85 1.40 0.89 0.32
Interest on
WC 0 3.24 3.24 3.24 3.24 3.24 3.24 3.24
Income Tax 0 7.77 9.24 12.48 16.10 20.14 24.66 32.14
Decrease in
Term loan 2.48 2.80 3.15 3.55 4.00 4.51 4.93
Drawing 0 3.00 5.00 3.00 6.00 7.00
Total Cash
Outflow 33.90 47.66 24.29 25.61 32.30 37.42 35.02 40.63
Opening
balance 0 0 22.54 38.69 63.44 92.71 129.49 182.89
Net Cash
flow 0 22.54 16.15 24.75 29.27 36.78 53.40 71.69
Closing
balance 0 22.54 38.69 63.44 92.71 129.49 182.89 254.58
All figures are in lakhs

Balance sheet
All figures are in lakhs

Pre
operative
Liability period Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
A. Share
holders’ funds
8.47 16.20 16.20 16.20 16.20 16.20 16.20 16.20
Capital
0 0 0 0 0 0 0 0
Subsidy
Reserve & 0 15.14 31.70 57.83 89.40 129.40 186.95 261.94
Surplus
[Link] current
Liabilities
25.42 22.94 20.14 16.99 13.44 9.44 4.93 0
Term loan
[Link]
Liabilities
Working capital 0 23.16 23.16 23.16 23.16 23.16 23.16 23.16
loan
Account 2.94 3.09 3.24 3.41 3.58 3.76 3.76
payable
33.90 80.38 94.29 117.42 145.60 181.77 234.99 305.05
Total Liability
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Asset
[Link] current
Assets
33.90 29.60 25.95 22.84 20.20 17.96 16.05 14.43
Fixed Assets
B. Current
Assets
0 22.34 23.46 24.63 25.86 27.16 28.52 28.52
Inventory
Trade 0 5.90 6.19 6.50 6.83 7.17 7.53 7.53
receivables
Cash and cash 0 22.54 38.69 63.44 92.71 129.49 182.89 254.58
equivalence
33.90 80.38 94.29 117.42 145.60 181.77 234.99 305.05
Total Asset

Repayment of Term loan

All figures are in lakhs

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Balanc
Instalmen Balance at Principa Total
Interest e at
t No. beginning l paid Paid
end
1 25.42 0.25 0 0.25 25.42
2 25.42 0.25 0 0.25 25.42
3 25.42 0.25 0 0.25 25.42
4 25.42 0.25 0 0.25 25.42
5 25.42 0.25 0 0.25 25.42
6 25.42 0.25 0 0.25 25.42
7 25.42 0.25 0 0.25 25.42
8 25.42 0.25 0 0.25 25.42
9 25.42 0.25 0 0.25 25.42
10 25.42 0.25 0 0.25 25.42
11 25.42 0.25 0 0.25 25.42
12 25.42 0.25 0 0.25 25.42
13 25.42 0.25 0.24 0.50 25.18
14 25.18 0.25 0.25 0.50 24.93
15 24.93 0.25 0.25 0.50 24.68
16 24.68 0.25 0.25 0.50 24.43
17 24.43 0.24 0.25 0.50 24.18
18 24.18 0.24 0.26 0.50 23.93
19 23.93 0.24 0.26 0.50 23.67
20 23.67 0.24 0.26 0.50 23.41
21 23.41 0.23 0.26 0.50 23.15
22 23.15 0.23 0.27 0.50 22.88
23 22.88 0.23 0.27 0.50 22.61
24 22.61 0.23 0.27 0.50 22.34
25 22.34 0.22 0.27 0.50 22.07
26 22.07 0.22 0.28 0.50 21.79
27 21.79 0.22 0.28 0.50 21.51
28 21.51 0.22 0.28 0.50 21.23
29 21.23 0.21 0.28 0.50 20.95
30 20.95 0.21 0.29 0.50 20.66
31 20.66 0.21 0.29 0.50 20.37
32 20.37 0.20 0.29 0.50 20.07
33 20.07 0.20 0.30 0.50 19.78
34 19.78 0.20 0.30 0.50 19.48
35 19.48 0.19 0.30 0.50 19.18
36 19.18 0.19 0.31 0.50 18.87

Repayment of Term loan

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All figures are in lakhs

Instalment Balance at Principal Total Balance
Interest
No. beginning paid Paid at end
37 18.87 0.19 0.31 0.50 18.56
38 18.56 0.19 0.31 0.50 18.25
39 18.25 0.18 0.31 0.50 17.94
40 17.94 0.18 0.32 0.50 17.62
41 17.62 0.18 0.32 0.50 17.30
42 17.30 0.17 0.32 0.50 16.98
43 16.98 0.17 0.33 0.50 16.65
44 16.65 0.17 0.33 0.50 16.32
45 16.32 0.16 0.33 0.50 15.98
46 15.98 0.16 0.34 0.50 15.65
47 15.65 0.16 0.34 0.50 15.31
48 15.31 0.15 0.34 0.50 14.96
50 14.62 0.15 0.35 0.50 14.26
51 14.26 0.14 0.35 0.50 13.91
52 13.91 0.14 0.36 0.50 13.55
53 13.55 0.14 0.36 0.50 13.19
54 13.19 0.13 0.37 0.50 12.83
55 12.83 0.13 0.37 0.50 12.46
56 12.46 0.12 0.37 0.50 12.08
57 12.08 0.12 0.38 0.50 11.71
58 11.71 0.12 0.38 0.50 11.33
59 11.33 0.11 0.38 0.50 10.94
60 10.94 0.11 0.39 0.50 10.56
61 10.56 0.11 0.39 0.50 10.17
62 10.17 0.10 0.40 0.50 9.77
63 9.77 0.10 0.40 0.50 9.37
64 9.37 0.09 0.40 0.50 8.97
65 8.97 0.09 0.41 0.50 8.56
66 8.56 0.09 0.41 0.50 8.15
67 8.15 0.08 0.42 0.50 7.73
68 7.73 0.08 0.42 0.50 7.31
69 7.31 0.07 0.42 0.50 6.89
70 6.89 0.07 0.43 0.50 6.46
71 6.46 0.06 0.43 0.50 6.03
72 6.03 0.06 0.44 0.50 5.59

Repayment of Term loan

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All figures are in lakhs

Balance
Balanc
Instalme at Intere Princip Total
e at
nt No. beginnin st al paid Paid
end
g
73 5.59 0.06 0.44 0.50 5.15
74 5.15 0.05 0.45 0.50 4.71
75 4.71 0.05 0.45 0.50 4.26
76 4.26 0.04 0.45 0.50 3.80
77 3.80 0.04 0.46 0.50 3.34
78 3.34 0.03 0.46 0.50 2.88
79 2.88 0.03 0.47 0.50 2.41
80 2.41 0.02 0.47 0.50 1.94
81 1.94 0.02 0.48 0.50 1.46
82 1.46 0.01 0.48 0.50 0.98
83 0.98 0.01 0.49 0.50 0.49
84 0.49 0.00 0.49 0.50 0.00

Debt Service Coverage Ratio

All figures are in lakhs

Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Receipts
a).Net Profit 18.14 21.56 29.13 37.57 47.00 57.54 74.99
b).Depreciation 4.30 3.65 3.11 2.64 2.24 1.91 1.62
c).Interest on
term loan 2.92 2.60 2.25 1.85 1.40 0.89 0.32
Total 25.35 27.82 34.48 42.06 50.65 60.34 76.93
Repayments
a).Loan
Principal 2.48 2.80 3.15 3.55 4.00 4.51 4.93
b).Interest on
term loan 2.92 2.60 2.25 1.85 1.40 0.89 0.32
Total 5.40 5.40 5.40 5.40 5.40 5.40 5.24
DSCR 4.70 5.15 6.39 7.79 9.38 11.17 14.67
Average DSCR :8.46

Break Even Point Analysis

Particular 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year

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Seeds 82.88 91.16 100.28 110.31 121.34 133.47 146.82

Rice 75 82.5 90.75 99.83 109.81 120.79 132.87
Total Sales 157.88 173.66 191.03 210.14 231.15 254.26 279.69
Variable & Semi Variable Exp.    
Raw Material
Consumed 97.00 101.85 106.94 112.29 117.90 123.80 123.80
Packaging 5.23 5.49 5.77 6.06 6.36 6.68 6.68
Wages &
Salary 10.88 11.42 11.99 12.59 13.22 13.88 13.88
Power and
Utilities 4.73 5.20 5.73 6.30 6.93 7.62 7.62
Interest on
working
Capital 3.24 3.24 3.24 3.24 3.24 3.24 3.24
Total 121.08 127.20 133.67 140.48 147.6 155.22 155.22
5
Contributio 36.80 46.46 57.36 69.66 83.50 99.04 124.47
n
Fixed & Semi Fixed Expenses    
Repair &
maintenance 1.61 1.77 1.95 2.14 2.36 2.59 2.59
Rent of
godown 7.20 7.92 8.71 9.58 10.54 11.60 11.60
Insurance of
Machinery &
Stock 0.75 0.83 0.91 1.00 1.10 1.21 1.21
Interest on
Term Loan 2.92 2.60 2.25 1.85 1.40 0.89 0.32
Depreciation 4.30 3.65 3.11 2.64 2.24 1.91 1.62
Total 16.78 16.77 16.93 17.21 17.64 18.20 17.34
Weighted 4355 4791 5270 5797 6377 7014 7716
Sale Price per
unit (Rs.)
Variable Cost 3340 3509 3687 3875 4073 4282 4282
per Unit (Rs.)
Contribution 1015 1282 1582 1922 2303 2732 3434
per Unit (Rs.)
BREAK EVEN
POINT - Unit 1083 992 890 805 733 734 735
BREAK EVEN 71.99 62.68 56.38 51.92 48.83 46.72 38.96
POINT - Sale

Depreciation
Particulars Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Seed Processing & Rice
Milling Machinery 28.66 24.36 20.71 17.60 14.96 12.72 10.81
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Less Depreciation 4.30 3.65 3.11 2.64 2.24 1.91 1.62

Written down value 24.36 20.71 17.60 14.96 12.72 10.81 9.19
Total less depreciation 4.30 3.65 3.11 2.64 2.24 1.91 1.62
Total written down
value 29.60 25.95 22.84 20.20 17.96 16.05 14.43

Other Financial Indicator

 
Pre 1st 2nd 3rd 4th 5th 6th 7th
Particulars operativ Year Year Year Year Year Year Year
e period
Profit after tax   18.14 21.56 29.13 37.57 47 57.54 74.99
Average Profit 40.85
after tax
Net Cashflow -33.90 22.54 16.15 24.75 29.27 36.78 53.4 71.69
Cumulative Cash
flow   -11.36 4.79 29.54 58.81 95.59    
Present Value 133.14              
Net Present
Value 99.24              
Internal Rate of
Return 70%              
Average Rate of
Return 120.49              
Profitability
Index 3.93              
Payback Period 1.70 Year              

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Computation of Production and Revenue
Year→ 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year
Amount Amount Amount Amount Amount Amount Amount
Particular↓ (Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.)
Seed production 5000 6000 7200 8640 10368 12442 14930
target (Qtls.)
MSP per Qtls 1940 2018 2098 2182 2270 2360 2455
Quantity of raw 2500 3000 3600 4320 5184 6221 7465
seed to dispose as
seed(Qtls.)
Quantity of raw 2500 3000 3600 4320 5184 6221 7465
seed to dispose as
rice (Qtls.)
Qty. of seed after 2125 2550 3060 3672 4406 5288 6345
processing (Qtls.)
Qty of rice after 1500 1800 2160 2592 3110 3732 4479
milling (Qtls.)
Cost of packing 105.00 110 116 122 128 134 141
materials for seed
(Rs./quintal)
Cost of packing 200.00 210 221 232 243 255 268
material for rice
(Rs./quintal)
Salary of staff & 300.00 315 331 347 365 383 402
labour arrived
(Rs./quintal)
Rent of godown 60000.00 66000 72600 79860 87846 96631 106294
per month
(Rs./month)
Sale price of seed 4500.00 4725 4961 5209 5470 5743 6030
(Rs./quintal)
Sale price of rice 5500.00 5775 6064 6367 6685 7020 7371
(Rs./quintal)
Expense              
Cost of raw seed 9700000 1210560 15107789 1885452 23530441 2936599 36648757
0 0 1
Cost of packing
materials for seed 223125 281138 354233 446334 562381 708600 892836
Cost of packing
materials for rice 300000 378000 476280 600112.8 756142.1 952739.1 1200451
Salary of Staff 1370250 1726515 2175409 2741015 3453679 4351636
Rent of Godown 720000 792000 871200 958320 1054152 1159567 1275524
Power & Utilities 473148 496805 521646 547728 575114 603870 634064
Repairs and
maintenance 161000 169050 177502.5 186377.6 195696.5 205481.3 215755.4
Insurance 75000 78750 82688 86822 91163 95721 100507
Total 1567159 2385562 3654564
12739773 3 19317853 3 29506105 9 45319529
Income            
Sale of Seed (Rs.) 1204875 1912859 3036855
9562500 0 15181425 6 24102030 8 38264383
Sale of Rice (Rs.) 8250000 1039500 13097700 1650310 20793909 2620032 33012409
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0 2 5
Total Revenue 2244375 3563169 5656888
17812500 0 28279125 8 44895939 3 71276793

Repair and Maintenance Cost

Particulars Cost Rate Amount
(Rs) (Rs)
Plant & Machinery 28.66 5% 1.43
Misc. Fixed Assets 2.43 5% 0.12
Contingency 1.01 5% 0.05
Expenses on repair & maintenance 32.10 5% 1.61

Preliminary and pre-operative Expenses

Particulars Amount (Rs)
Travelling Expenses 25000
Fees for obtaining certificate from different authority 50000
Miscellaneous expenses 50000
TOTAL 125000
Say (Rs. in lakhs ) 1.25

Power and Utility

A. Expenses on Plant Machinery
Particulars Power
(Kw)
Processing Plant Machinery load 30 HP 22.38
No. of hrs/ day 7
Nos. of days Seed Processing plant runs 120
/annum
Annual power requirement (kwh) 18799
Rice Milling Machinery load 40 HP 29.84
No. of hrs/ day 7
Nos. of days Rice Milling Plant runs /annum 300
Annual power requirement (kwh) 62664
Total power requirement (kwh) 81463
Rate per unit (Rs) 5.50
Expense on Plant (Rs.) 448048
B. Expenses on General Lighting
General Lighting 2.00
Total power requirement/ annum (Kw) 4200
Rate per unit (Rs) 5.50
Expenses on power for Light (Rs.) 23100
C: Expenses on Utility  
Expenses on Water/Other Utilities (Rs) 2000
Expenses on Power & Utility / annum at 100% 473148
capacity (Rs)
Say (Rs. in lakhs) 4.73

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Cost of Plant Machinery

Particulars Qty Rate Amount (Rs)
MACHINERY
Pre-Cleaner 1 238000 238000
Seed Grader 1 382500 382500
Indented cylinder seed Grader 1 250750 250750
Specific Gravity Separator 1 280500 280500
[Link] 3 312035 312035
By Pass Arrangement 1 35700 35700
VFD arrangement 1 31875 31875
Compact Rice Milling Plant 1 950000 950000
Sub-Total 2481360
GST @ 5 % 124068
Sub-Total 2605428
Add: transportation and installation etc @ 10% 260542
Sub-Total Plant and Machinery 2865970
MISCELLANEOUS FIXED ASSETS
Electrical Load Security and Transformer LS 95000
Furniture and Fixtures LS 60000
Computer & printer LS 47000
Bag closer, Weighing machine etc. LS 41400
Sub-Total 243400
Total 3109370
Contingency 5% 155469
  Grand Total 3264838.5

Assumption
 The entire projection is based on the assumption that the revenue from the
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sale of Paddy seed and Rice will be as under. The sale value has been calculated
at prevailing market price and 5% increased has been considered for
subsequent year.

Estimated Projected Projected Projected Projected Projected Projected

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

180.22 197.12 215.66 236.00 258.30 282.77 308.20

lakhs lakhs lakhs lakhs lakhs lakhs lakhs

 The total expenditure to be incurred in the business during projection year will be
as follows. An increase of 5% has also been taken in to consideration while making
the projection for expenditure.

Estimated Projected Projected Projected Projected Projected Projected

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

127.40 134.48 141.99 149.96 158.41 167.37 167.37

lakhs lakhs lakhs lakhs lakhs lakhs lakhs

 The depreciation has been calculated at the rate of 15% annually on the depreciated
cost of the plant machinery.

 The Plant will run as per production target. Accordingly, seed processing plant will
be in operation for 90 days and rice milling will run for 300 days in a year.

 Cost of machinery is based on the quotation submitted by the supplier.

 Value of raw materials & utility charges as per the current market conditions.

 Interest on term loan and working capital loan has been calculated @ 12% and 14%
respectively.

 Salary and wages rate are taken as per the current market scenario.

 The 25% of total investment is taken as margin money.

 Operation cycle of 90 days at different stages has been taken for calculation of
working capital.

 All other assumptions are based on the of the promoter and deep study on the working of
similar model

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Conclusion
The project as a whole describes the scope and viability of the Agriculture industry and
mainly of the financial, technical and its market potential. The project guarantee sufficient
fund to repay the loan and also give a good return on capital investment. When analyzing
the social- economic impact, this project is able to generate an employment of 15 and
above. It will cater the demand of Agriculture and thus helps the other business entities to
increase the production and service which provide service and support to this industry.
This will also generate employment and livelihood to the people. So in all ways, we can
conclude the project is technically and socially viable and commercially sound too.

When we take a close look at the Debt Service Coverage Ratio (DSCR), the avg: DSCR is
8.46: 1, which is at a higher proposition and proposes a stable venture

The Profit and Loss shows a steady growth in profit throughout the year and the firm has a
higher Current Ratio (average) of 5.41, this shows the current assets and current liabilities
are managed & balanced well. The other financial indicator like Net Present Value, Internal
Rate of Return, Average Rate of Return, Profitability Index are at higher proposition which
shows that project is very sound in all respect and can be financed.

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