MODEL DPR

ESTABLISHMENT OF CHILLY
PROCESSING UNIT
(WITHOUT CAPITAL SUBSIDY)

under Agriculture Infrastructure Fund Scheme

Submitted to Submitted by

Knowledge Partner
NABARD Consultancy Services
Department of Agriculture, Corporate Office: 24 Rajendra Place,
Cooperation & Farmers Welfare 7th Floor, NABARD Building, New Delhi
Registered Office: Plot No. C-24, G Block,
3rd Floor, NABARD Building, Bandra Kurla Complex,
Bandra East, Mumbai
 Model DPR for Establishment of Chilly Processing Plant (without Capital Subsidy)

DISCLAIMER

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

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

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

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

financial commitment whatsoever on any view, observation or conclusion expressed
herein.
 Model DPR for Establishment of Chilly Processing Plant (without Capital Subsidy)

CREDIT CITATION

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

Our sincere thanks are also due to all others who directly or indirectly helped
NABCONS in preparation of this document.
 Model DPR for Establishment of Chilly Processing Plant (without Capital Subsidy)

DPR Template for projects under Agriculture Infrastructure Fund1

1. Details of the Applicant

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

1 This template is prepared keeping in mind the essential information required by the lending institutions to process the
loan application. Different formats of table/description can be used for preparation of the DPR but all the required
information in template should be included in the DPR.
 Model DPR for Establishment of Chilly Processing Plant (without Capital Subsidy)

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

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

To be filled by the applicant

2

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

S Name of Aadhaa PA Academi Net DI Credi Date Partne
Promoter(s r No. N c and Wort N t of r profit
N )/ No. technical h No Ratin Share sharin
Partner(s)/ Qualifica . g holdin g ratio
Director(s)/ ti on g
Members

1 To be filled by the applicant

2
 Model DPR for Establishment of Chilly Processing Plant (without Capital Subsidy)

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

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

2 To be filled by the applicant

5. Details of Existing Banking and Credit facilities of the Applicant/

Promoter(s)/ Partner(s)/ Directors(s)
S Types Name Limit Outstandi Securiti Rate Repayme Purpos
N of of s ng as on es of nt terms e
Facilit Bank dd/mm/yy intere
y and yy st
Branc
h

Cash
1
Credit
To be filled by the applicant
Term
2
Loan

Other
3
s

*Information pertaining to credit rating (internal /external) may also be shared

along with the aforementioned information
Details of GST Returns submitted, if any or status of registration
 Model DPR for Establishment of Chilly Processing Plant (without Capital Subsidy)

6. Project Details
a. Objective of the proposed project: CHILLY PROCESSING UNIT
b. Category of proposed infrastructure as per the Scheme:

SN Component Mark Tick (✓)

1 Supply chain
2 Warehouses
3 Silos
4 Pack Houses
5 Assaying Unit
6 Sorting & Grading unit
7 Cold Chain
8 Logistics facilities
9 Primary Processing Centres ✓
10 Ripening Chambers
11 Organic input production
12 Bio stimulant production unit
13 Infrastructure for Smart and precision agriculture
Projects identified for providing supply chain
14 infrastructure for clusters of crops including export
clusters.
Projects promoted by Central/State/Local
Governments or their agencies under PPP for
15
building community farming assets or post-harvest
management projects.
16 Any other (please Specify)

c. Type of Operating Model (Rental, PPP, captive, Lease, Franchise etc.) and
details
To be filled by the applicant, some sample details are added
7. Land Details:
SN Particulars Details
5000 sq ft (land considered as
1 Land Area
Owned/ Leased)
2 Status of Legal title & Possession
3 if leased, Period of lease
 Model DPR for Establishment of Chilly Processing Plant (without Capital Subsidy)

SN Particulars Details
4 Coordinates of location
5 Details of CLU
Connectivity to roads
6 I. State Highway (in Km.) XX Km from YY road
II. National Highway (in Km.)
7 Availability of Water Borewell and water pipe line
8 Availability of Power State electricity board connection

8. Proposed facilities:
I. Details of proposed facility

Total Capacity
Type of facilities proposed No. of No. of Days
SN [MT, Ltrs,
to be created Units of operation
MT/Hr.
1 Warehouse
2 Silos
3 Pack-house
4 CA Store
5 Cold store
6 Frozen store
7 Pre-cooling Chambers
Processing unit, Weighing,
300 KG Per
8 Packing facility [Modify as 2 Unit 225 days
Hour
per actual]
9 Ripening Chambers
10 IQF
11 Blast Freezing
Refrigerated Vehicles/
12
Reefer vans
13 Mobile Pre-coolers
Insulated/ non-insulated
14
distribution vehicle
15 Irradiation Facility
16 Organic input production
Bio Stimulant production
17
units
18 Others (Specify)
 Model DPR for Establishment of Chilly Processing Plant (without Capital Subsidy)

II. Details of technologies to be used/ alternative technologies Boiler, conveyor

belt, hot air dryer
III. Flow chart of activity process

9. Proposed Project Financials

a. Estimated Project cost details

Amount (Rs. In
S. No. Particulars
Lakhs)
1 Civil Works 16.00
2 Plant & Machineries 16.05
3 Working Capital Margin Money 5.35
4 Preliminary & Preoperative Expenses 0.60
Project Cost 38.00
b. Plant and Machineries
A list of plant and machinery required for a chilly processing unit
are as under:
Qty. in Price in
[Link] Name of Machinery
Nos Rs.
1 Automatic chilly grinding machine 1 670,000
2 Digital weighing scale 1 25,000
3 Packaging machine 1
 Model DPR for Establishment of Chilly Processing Plant (without Capital Subsidy)

Qty. in Price in
[Link] Name of Machinery
Nos Rs.
250,000
4 1
Sieving machine 125,000
5 1
Dryer 65,000
1
6
Quality testing equipment 100,000
1
7
Washing tank 20,000
8 Grading machine 1 150,000
9 Miscellaneous 1 200,000
Total Machineries (Rs. In Lakhs) 16,05,000
Total Cost of Plant and Machineries (Rs.
In Lakhs) 16.05 Lakhs

c. Means of finance

S. No. Source of Finance Amount (Rs. In %

Lakhs)
1 *Promoter’s Equity (10.00%) 3.8 10.00
2 Term Loan from Bank 28.85 75.92
3 Working Capital Margin Money 5.35 14.08
Total 38.00 100
*The source of the owned funds and also the capacity of the promoter to
support the project in the event of cost escalations due to time overruns should
also be mentioned

d. Basic Revenue Projections (₹ in lakh)

SN Item Year 1 Year 2 Year 3 Year 4 Year 5
1 Turnover 481.14 573.36 617.46 661.57 705.67
2 Cost of Operations 466.30 550.18 591.72 633.41 675.26
3 Gross Profit 14.84 23.18 25.74 28.16 30.41
Earnings Before
Interest, Tax,
4 Depreciation and
Amortization
(EBITDA) 14.84 23.18 25.74 28.16 30.41
5 Profit before taxation 7.981 17.661 20.942 24.011 26.869
6 Profit after taxation 5.407 12.363 14.659 16.808 18.808
 Model DPR for Establishment of Chilly Processing Plant (without Capital Subsidy)

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

e. Financial Parameters
Details Ref Page No. in
SN Particulars
(Ratio/%) DPR*
Internal Rate of Return (IRR) [(a) With
1 76.84% -
and (b) without grant/ subsidy]
Avg. Debt Service Coverage Ratio
2 3.4 -
(DSCR)
3 Break Even Point (BEP) 47.23% -
4 Debt-Equity Ratio ( TTL/TNW) 1.74 -
5 Fixed Assets Coverage Ratio 1.41 -

f. Credit Facilities proposed

I. Fund Based
a) Term Loan 28.85 lacs
b) Working Capital 5.35lacs
(Attach Assessment of working capital, if proposed)
II. Non Fund Based

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

g. Repayment Schedule (Including moratorium period) - 84 Months (Including 6

months Moratorium)

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

Completed

10. Availability of Raw Materials in the Catchment Area - provide details such
as Adequate Volume, Wider Mix of Raw Materials, Days of Operation in a
Year along with supporting data. Based on this information
feasibility/viability of the project should be justified.
Raw material is to be acquired from nearby farmer suppliers. The unit has
agreed to procure the chillies from the farmers at the prices agreed in the
agreement.
The unit shall operate for 225 days in a year.
 Model DPR for Establishment of Chilly Processing Plant (without Capital Subsidy)

11. Details of the catchment area of the project

Location of the Name Commodities Quantities to be

S.N Catchment Village/Dist/ to be sourced [MT ]
(Primary/Secondary) APMC sourced ( per annum)
1
2
*DPR should comprised of detailed chapter on proposed catchment (production
and supply statistics).

12. Details of existing demand of the product and marketing arrangements

(including e-trading), possibility of for leasing with FCI/CWC/SWC/e-commerce
players / retailers for assured cash flows if any.

India being the world's largest producer, consumer and exporter of chillies has the
largest area of 7.33 lakh ha (18.11 lakh acres) accounting for 42.81% of world area.
Chilli powder is the dried, pulverized fruit of one or more varieties of chilli pepper,
sometimes with the addition of other spices (where it is also sometimes known as
chilli powder blend or chilli seasoning mix).It is used as a spice (or spice blend) to
add pungency (piquancy) and flavor to culinary dishes.

Capsaicin in red chillies is known to reduce inflammation and act as natural pain
relief remedy. It binds with nerve endings that sense pain to reduce the feeling of
pain. Capsaicin also helps reduce pain and inflammation in the muscles and joints of
the lower back. Red chillies are good for digestive health as they help increase the
secretion of digestive juices which prevent problems such as constipation and gas.
Red chillies are also used as a preservative due to their antibacterial and antifungal
properties, which also helps in reducing harmful bacteria. This can help in keeping
the intestines healthy.

13. Employment Generation projections

a. Direct Employment: (Skilled and Semi-skilled): 12
b. Contractual Employment with no. of days: ……………..
c. Indirect Employment (specify): …Packing material suppliers, Dealers and
Service providers, Local vendors gets indirect employment from this
project in rural areas.

Particulars Nos. Monthly Salary (Rs.)

Accountant -cum -Cashier 1 22000
Mechanic 4 10000
Helper 1 15000
Labour 4 12000
 Model DPR for Establishment of Chilly Processing Plant (without Capital Subsidy)

Particulars Nos. Monthly Salary (Rs.)

Security 2 10500
Total salary for the year 10 1752000
Benefits @ 30% 525600
Total salary (Rs. In Lakh Per year) 22.77 lakhs

 Direct Employment: (Skilled and Semi-skilled) -12

 Contractual Employment with no. of days: 4 (300 days)
 Indirect Employment (specify): 25

14. Details of renewable/ alternate energy sources including solar energy, if

any, proposed to be used for operating the project including inter alia,
details of power generation.
50% of power requirement will be fulfilled by renewable energy

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

Basic cost How the technology will help

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

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

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

Date: _________________ Signature of the Applicant

Place: ______
 Model DPR for Establishment of Chilly Processing Plant (without Capital Subsidy)

Annexures
Contents Table

Contents Link
Annexure 1 - Estimated cost of the project Ann 1'!A1
Annexure 2 - Means of Finance Ann 2'!A1
Annexure 3 - Complete Estimate of Civil and Plant and Machinery Ann 3'!A1
Annexure 4 - Estimated Cost of Production Ann 4'!A1
Annexure 5- Projected balance sheet Ann 5'!A1
Annexure 8 - Details of Manpower Ann 8'!A1
Annexure 9 - Computation of Depreciation Ann 9'!A1
Annexure 10 - Calculation of Income tax Ann 10'!A1
Annexure 11- Break even analysis (At maximum capacity utilization) Ann 11'!A1
Annexure 13 - Repayment schedule Ann 13'!A1
Annexure 14 - Cash flow statement Ann 14'!A1
Sales Budget Budgets!A1
Assumptions Assumptions!A1
DPR without subsidy

Annexure 1 - Estimated cost of the project

Estimated cost of project

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

2 Site Development -
(a) Total -

3 Civil Work
(a) Civil Work 16.00
Total 16.00

4 Plant and Machinery (indegenous)

(a) Plant and Machinery 16.05
Total 16.05

5 Miscellanoeus Fixed Assets

(a) Cost -

6 Working Capital Margin 5.35

7 Preliminary Expenses -
(a) Security Deposit -
Total -

8 Pre-Operative Expense
(for 6 months upto the date od commencement of
commercial production)
(a) Establisment and Travelling and Other Expenses
(b) Legal and Misc Expense 0.60
Total 0.60

Total Cost of Project 38.00

Annexure 2 - Means of Finance

Sr. No. Item Grand Total (in lakhs)

1 Promoter's equity 3.800
2 Eligible Assistance -
3 Term Loan 28.850
4 CC Limit 5.35
Total 38.00
Annexure 3 - Complete Estimate of Civil and Plant and Machinery

1. Civil Work Units Amt

1 Civil work for building 1 1,600,000
Total Civil Work 1,600,000

2. Plant and machinery** Units Capacity Amt

1 Automatic chilly gringing machine 2 upto 300 kg per hr 670,000
2 Digital weighing scale 1 25,000
3 Packaging machine 1 250,000
4 Sieving machine 1 125,000
5 Dryer 1 upto 4000 kg per day 65,000
6 Quality testing equipments 1 100,000
7 Washing tank 1 20,000
8 Grading machine 1 150,000
9 Miscellaneous 1 200,000
Total Plant and Machinery 1,605,000

Total fixed Assets 3,205,000

** The Plant and Machinery cost estimate is as per the available technology
Annexure 4 - Estimated Cost of Production

Year ending March 31st

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

Input chilly 36,936,000 44,015,400 47,401,200 50,787,000 54,172,800 57,558,600 60,944,400 64,330,200 67,716,000
Electricity expense 1,270,000 1,326,000 1,384,800 1,446,540 1,511,367 1,579,435 1,650,907 1,725,952 1,804,750
Insurance cost @ 2% of purchase cost 64,100 67,305 70,670 74,204 77,914 81,810 85,900 90,195 94,705
Running and Manintenance expense @15% of raw material 5,540,400 6,602,310 7,110,180 7,618,050 8,125,920 8,633,790 9,141,660 9,649,530 10,157,400
Cost of Production 43,810,500 52,011,015 55,966,850 59,925,794 63,888,001 67,853,635 71,822,867 75,795,878 79,772,855
Add: Opening Stock - 469,800 978,750 1,526,850 2,114,100 2,740,500 2,074,950 1,370,250 626,400
Less: Closing Stock 469,800 978,750 1,526,850 2,114,100 2,740,500 2,074,950 1,370,250 626,400 -
Sub Total 43,340,700 51,502,065 55,418,750 59,338,544 63,261,601 68,519,185 72,527,567 76,539,728 80,399,255

Administrative salaries and wages 2,277,600 2,437,032 2,607,624 2,790,158 2,985,469 3,194,452 3,418,063 3,657,328 3,913,341
Packaging cahrges @ Rs. 2 per kg 481,140 521,235 561,330 601,425 641,520 695,385 736,290 777,195 816,480
Selling charges @ Rs. 1 per kg 320,760 347,490 374,220 400,950 427,680 463,590 490,860 518,130 544,320
Fixed charge for office 210,000 210,000 210,000 210,000 210,000 210,000 210,000 210,000 210,000
Total 3,289,500 3,515,757 3,753,174 4,002,533 4,264,669 4,563,427 4,855,213 5,162,653 5,484,141

Cost of Sales 46,630,200 55,017,822 59,171,924 63,341,077 67,526,270 73,082,612 77,382,781 81,702,381 85,883,396
Expected sales revenue 48,114,000 57,335,850 61,746,300 66,156,750 70,567,200 76,492,350 80,991,900 85,491,450 89,812,800
Gross Profit 1,483,800 2,318,028 2,574,376 2,815,673 3,040,930 3,409,738 3,609,119 3,789,069 3,929,404

Financial expense
Interest on Term Loan 171,436 149,798 123,167 96,537 69,906 43,275 16,644 - -
Interest on WC Loan 53,500 53,500 53,500 53,500 53,500 53,500 53,500 53,500 53,500
Total Financial expense 224,936 203,298 176,667 150,037 123,406 96,775 70,144 53,500 53,500

Operating profits (PBT) 1,258,864 2,114,730 2,397,708 2,665,637 2,917,524 3,312,963 3,538,975 3,735,569 3,875,904
Preliminary Expense 60,000 - - - - - - - -
depreciation 400,750 348,638 303,542 264,491 230,649 201,300 175,829 153,706 134,477
Net Profit before Tax 798,114 1,766,092 2,094,166 2,401,146 2,686,875 3,111,663 3,363,146 3,581,863 3,741,427
Income Tax 257,434 529,828 628,250 720,344 806,063 933,499 1,008,944 1,074,559 1,122,428
Profits after Tax 540,680 1,236,265 1,465,916 1,680,802 1,880,813 2,178,164 2,354,202 2,507,304 2,618,999
Distribution of profits (80%) 432,544 989,012 1,172,733 1,344,642 1,504,650 1,742,531 1,883,362 2,005,843 2,095,199
Profit transfer to balance sheet 108,136 247,253 293,183 336,160 376,163 435,633 470,840 501,461 523,800

1. Electricity are semi-fixed cost. Rs. 150,000 pa is fixed, balance is variable at Rs. 14 per unit usage
2. Electricity usage in units is given below
Usage in units 80000 84000 88200 92610 97240.5 102102.525 107207.6513 112568.0338 118196.4355
Variable cost 1120000 1176000 1234800 1296540 1361367 1429435.35 1500907.118 1575952.473 1654750.097
3. It is assumed that insuarance cost is 2% of purchase price and this will increase 5% annually
4. Closing stock is valued at Rs 145 (avg cost)
5. Input cost of chilly would increase 10% per annum while 5% of input is wasted.
Annexure 5- Projected balance sheet

Projected Balance sheet

Year ending March 31st

Sr. No Description
I II III IV V VI VII VIII IX
A Asset
1 Fixed Capital expenditure
Gross Block 3,205,000.00 2,804,250.00 2,455,612.50 2,152,070.63 1,887,580.03 1,656,931.03 1,455,630.57 1,279,801.27 1,126,094.83
Less- Depreciation 400,750.00 348,637.50 303,541.88 264,490.59 230,649.00 201,300.45 175,829.31 153,706.44 134,476.85
Net Block 2,804,250.00 2,455,612.50 2,152,070.63 1,887,580.03 1,656,931.03 1,455,630.57 1,279,801.27 1,126,094.83 991,617.98
2 Sundry debtors 9,622,800.00 11,467,170 12,349,260 13,231,350 14,113,440 15,298,470 16,198,380 17,098,290 17,962,560
3 Closing stock 469,800.00 978,750 1,526,850 2,114,100 2,740,500 2,074,950 1,370,250 626,400 -
4 Cash/ bank balance 3,532,282.94 3,773,400 3,664,190 3,519,756 3,342,333 4,184,041 5,359,755 7,026,963 8,615,471
Total assets 16,429,132.94 18,674,933 19,692,371 20,752,786 21,853,204 23,013,091 24,208,186 25,877,748 27,569,649

B Liabilities
1 Capital 380,000.00 488,136 735,389 1,028,572 1,364,733 1,740,895 2,176,528 2,647,368 3,148,829
Add- Profit 108,136.02 247,253 293,183 336,160 376,163 435,633 470,840 501,461 523,800
Less- Drawings - - - - - - - - -
Closing capital 488,136.02 735,389 1,028,572 1,364,733 1,740,895 2,176,528 2,647,368 3,148,829 3,672,629
2 Term Loan 2,663,076.92 2,219,231 1,775,385 1,331,538 887,692 443,846 - - -
3 Working capital 535,000.00 535,000 535,000 535,000 535,000 535,000 535,000 535,000 535,000
4 Creditors 12,742,920.00 15,185,313 16,353,414 17,521,515 18,689,616 19,857,717 21,025,818 22,193,919 23,362,020
Total liabilities 16,429,132.94 18,674,933 19,692,371 20,752,786 21,853,204 23,013,091 24,208,186 25,877,748 27,569,649

Current Ratio
Current Assets 13,624,883 16,219,320 17,540,300 18,865,206 20,196,273 21,557,461 22,928,385 24,751,653 26,578,031
Current Liabilities 13,277,920 15,720,313 16,888,414 18,056,515 19,224,616 20,392,717 21,560,818 22,728,919 23,897,020
Ratio 1.02613082 1.03174283 1.038599612 1.044786668 1.050542311 1.057115666 1.063428353 1.088993869 1.112190186
Average 1.057058924

Debt Equity ratio

Debt 3,198,077 2,754,231 2,310,385 1,866,538 1,422,692 978,846 535,000 535,000 535,000
Equity 488,136 735,389 1,028,572 1,364,733 1,740,895 2,176,528 2,647,368 3,148,829 3,672,629
Ratio 6.551610201 3.745270768 2.246205484 1.367695264 0.81721879 0.449728256 0.202087474 0.169904417 0.145672211
Average 1.74393254

Fixed asset coverage ratio

Fixed assets 2,804,250 2,455,613 2,152,071 1,887,580 1,656,931 1,455,631 1,279,801 1,126,095 991,618
Debt 3,198,077 2,754,231 2,310,385 1,866,538 1,422,692 978,846 535,000 535,000 535,000
ratio 0.876855081 0.891578341 0.931477214 1.011273044 1.164644679 1.487088208 2.3921519 2.104850147 1.853491554
1.41260113

Debt service coverage ratio

Interest on loan (TL + WC) 224,936 203,298 176,667 150,037 123,406 96,775 70,144 53,500 53,500
Instalment of loan 756,923 978,846 978,846 978,846 978,846 978,846 978,846 535,000 535,000
Total Interest 981,859 1,182,144 1,155,513 1,128,883 1,102,252 1,075,621 1,048,990 588,500 588,500
Net operating income 1,483,800 2,318,028 2,574,376 2,815,673 3,040,930 3,409,738 3,609,119 3,789,069 3,929,404
Ratio 1.511215483 1.960867329 2.227906118 2.494212481 2.758833977 3.170017778 3.440564714 6.438520813 6.67698244
Average 3.408791237

1. asssumed that 90 days of purchases are average creditors maintained

2. assumed that 60 days of sales are average debtors maintained by the business
Annexure 8 - Details of Manpower

Details of Manpower

S. No. Designation In no. Salary per person per month Annual cost
i. Accountant cum cashier 1 22,000 264,000
ii. Mechanic 4 10,000 480,000
iii. Helpers 1 15,000 180,000
iv. Labour 4 12,000 576,000
v. Security 2 10,500 252,000
Total 1,752,000

Add: benefits @ 30% 525,600

Total 2,277,600

Total annual wages 2,277,600

Annual increase in wages 7%
Total manpower 12
Annexure 9 - Computation of Depreciation

Computation of Depreciation

Sr. No. Particulars Civil work Plant and Machinery Misc Fixed Asset Amount in lakhs
i. Cost 1,600,000 1,605,000 - 32.05
ii. Pre operatives - - - 0.00
iii. Contingencies - - - 0.00
Total 32.05

Rates of Depreciation 10% 15% 10% Total depreciation for the year
Year 1 160,000.00 240,750.00 - 400,750.00
Year 2 144,000.00 204,637.50 - 348,637.50
Year 3 129,600.00 173,941.88 - 303,541.88
Year 4 116,640.00 147,850.59 - 264,490.59
Year 5 104,976.00 125,673.00 - 230,649.00
Year 6 94,478.40 106,822.05 - 201,300.45
Year 7 85,030.56 90,798.75 - 175,829.31
Year 8 76,527.50 77,178.93 - 153,706.44
Year 9 68,874.75 65,602.09 - 134,476.85
Annexure 10 - Calculation of Income tax

Calculation of Income Tax

Year ending March 31st

Particulars
I II III IV V VI VII VIII IX
Net profit before tax 1,258,864 2,114,730 2,397,708 2,665,637 2,917,524 3,312,963 3,538,975 3,735,569 3,875,904
Add- dep on SLM - - - - - - - - -
Sub total 1,258,864 2,114,730 2,397,708 2,665,637 2,917,524 3,312,963 3,538,975 3,735,569 3,875,904
Less- Dep on WDV 400,750 348,638 303,542 264,491 230,649 201,300 175,829 153,706 134,477
Sub total 858,114 1,766,092 2,094,166 2,401,146 2,686,875 3,111,663 3,363,146 3,581,863 3,741,427
Less - Deductions - - - - - - - - -
Taxable profits 858,114 1,766,092 2,094,166 2,401,146 2,686,875 3,111,663 3,363,146 3,581,863 3,741,427
Income tax @30% 257,434 529,828 628,250 720,344 806,063 933,499 1,008,944 1,074,559 1,122,428
Annexure 11- Break even analysis (At maximum capacity utilization)

Break even capacity at maximum capacity utilization

Sales 68,734,286
Variable cost
- Running and maintenance cost 10,310,143
- Interest on Working capital 53,500
- electricity expense 1,654,750 12,018,393
Contribution 56,715,893
Less: Fixed costs
Wages and salaries 2,277,600
Depreciation 400,750
Fixed charges for office 210,000
Electricity fixed charge 150,000
Insurance cost 64,100
Interest on TL 171,436
Fixed cost 3,273,886

Particulars Rs. per kg

Sales price per kg 150
Variable costs
Input chilly cost 114
Electricity cost 2.96
Running and maintenance 17.1
Packing charges 2
Selling expense 1
Interest on working capital 0.10
Contribution per unit 12.83796296
BEP in kgs 255,015.97
Total BEP % 47.23%

Break-even point is the condition when an entity generate sufficient revenue that it can meet its fixed
expense after deducting any variable expense, i.e., the point where contribution is equal to the fixed
expense.

For the first year of operation the break-even capacity comes at 47.23% capacity, it is because of the fact
that in the Initial year the fixed expense of consultancy for project is taken in to consideration for
calculation of BEP. considering our operational capacity in year 1 to be 60% which is more than the BEP,
hence we can conclude that the project is sound enough to cover its fixed expense.
Annexure 13 - Repayment schedule

Repayment schedule
Amount of Loan (in lakhs) 28.8500
Rate of interest 6.00%
Moratorium period 6 months

Year Quarter Balance outstanding Principal instalment Interest

1 28.85 0 0.43275
2 28.85 0 0.43275
1
3 28.85 1.109615385 0.43275
4 27.74038462 1.109615385 0.41611
1 26.63076923 1.109615385 0.39946
2 25.52115385 1.109615385 0.38282
2
3 24.41153846 1.109615385 0.36617
4 23.30192308 1.109615385 0.34953
1 22.19230769 1.109615385 0.33288
2 21.08269231 1.109615385 0.31624
3
3 19.97307692 1.109615385 0.2996
4 18.86346154 1.109615385 0.28295
1 17.75384615 1.109615385 0.26631
2 16.64423077 1.109615385 0.24966
4
3 15.53461538 1.109615385 0.23302
4 14.425 1.109615385 0.21638
1 13.31538462 1.109615385 0.19973
2 12.20576923 1.109615385 0.18309
5
3 11.09615385 1.109615385 0.16644
4 9.986538462 1.109615385 0.1498
1 8.876923077 1.109615385 0.13315
2 7.767307692 1.109615385 0.11651
6
3 6.657692308 1.109615385 0.09987
4 5.548076923 1.109615385 0.08322
1 4.438461538 1.109615385 0.06658
2 3.328846154 1.109615385 0.04993
7
3 2.219230769 1.109615385 0.03329
4 1.109615385 1.110 0.01664
Annexure 14 - Cash flow statement

Particulars 0 I II III IV V VI VII VIII IX

opening balance 535,000 535,000 3,532,283 3,773,400 3,664,190 3,519,756 3,342,333 4,184,041 5,359,755 7,026,963
Add: Capital 380,000 - - - - - - - - -
Add: Loan disbursement 2,885,000 - - - - - - - - -
Less: Purchase of asset 3,205,000 - - - - - - - - -
Less: Land purchase -
Add: Sales realizations 38,491,200 45,868,680 49,397,040 52,925,400 56,453,760 61,193,880 64,793,520 68,393,160 71,850,240
Less: Payment made to creditors of previos year - - 12,742,920 15,185,313 16,353,414 17,521,515 18,689,616 19,857,717 21,025,818 22,193,919
Add: Receipts from debtors of previos year - - 9,622,800 11,467,170 12,349,260 13,231,350 14,113,440 15,298,470 16,198,380 17,098,290
Less: Payments made for current year purchase - 34,357,080 40,341,459 43,366,610 46,406,812 49,463,054 52,559,345 55,652,263 58,764,612 61,894,976
Less: Pre incorporation expense 60,000 - - - - - - - - -
Less: Interest payments - 224,936 203,298 176,667 150,037 123,406 96,775 70,144 53,500 53,500
535,000 4,444,184 5,736,086 5,909,019 6,028,588 6,096,891 7,303,917 8,695,907 10,107,366 11,833,099
Less: Income tax - 257,434 529,828 628,250 720,344 806,063 933,499 1,008,944 1,074,559 1,122,428
- 4,186,750 5,206,258 5,280,770 5,308,244 5,290,829 6,370,418 7,686,963 9,032,807 10,710,670
Less: Distrubutions made from profits - 432,544 989,012 1,172,733 1,344,642 1,504,650 1,742,531 1,883,362 2,005,843 2,095,199
- 3,754,206 4,217,246 4,108,036 3,963,602 3,786,179 4,627,887 5,803,601 7,026,963 8,615,471
Less: Principal repayment of loan - 221,923 443,846 443,846 443,846 443,846 443,846 443,846 - -
Closing cash balance 535,000 3,532,283 3,773,400 3,664,190 3,519,756 3,342,333 4,184,041 5,359,755 7,026,963 8,615,471

PV dicounting rate 6.00%

PVF 1 0.943396226 0.889996440 0.839619283 0.792093663 0.747258173 0.704960540 0.665057114 0.627412371 0.591898464
Inflows 3,800,000 39,026,200 59,023,763 64,637,610 68,938,850 73,204,866 78,649,653 84,276,031 89,951,295 95,975,493
PV of Inflows 3,800,000 36,817,170 52,530,939 54,270,984 54,606,026 54,702,935 55,444,902 56,048,374 56,436,555 56,807,747
Outflows 3,265,000 35,493,917 55,250,363 60,973,420 65,419,094 69,862,534 74,465,612 78,916,275 82,924,332 87,360,022
PV of Outflows 3,265,000 33,484,827 49,172,626 51,194,459 51,818,050 52,205,349 52,495,318 52,483,830 52,027,752 51,708,263

Net cash inflow 535,000 3,532,283 3,773,400 3,664,190 3,519,756 3,342,333 4,184,041 5,359,755 7,026,963 8,615,471
Net Present value 535,000 3,332,342 3,358,313 3,076,525 2,787,977 2,497,585 2,949,584 3,564,543 4,408,804 5,099,484 31,075,157
Sales Budget
Year ending March 31st
Particulars
I II III IV V VI VII VIII IX
Estimated ocupational capacity 60% 65% 70% 75% 80% 85% 90% 95% 100%
Production capacity (kgs) 324,000 351,000 378,000 405,000 432,000 459,000 486,000 513,000 540,000
Input required to produce above output (kgs) 462,857 501,429 540,000 578,571 617,143 655,714 694,286 732,857 771,429
Sales (kgs) 320,760 347,490 374,220 400,950 427,680 463,590 490,860 518,130 544,320
Revenue in Rs. 48,114,000 57,335,850 61,746,300 66,156,750 70,567,200 76,492,350 80,991,900 85,491,450 89,812,800

Estimation of Production capacity

Per annum capacity in kgs 540,000 Assumed that 1000 kg per hour is the production capacity
Operational days 225 dys

Products Production at 100% Sales prices per kg Purchase price per

capacity kg

Output 540,000 150.0 76.0

Production Budget
Year ending March 31st
Particulars
I II III IV V VI VII VIII IX
Opening Stock - 3,240 6,750 10,530 14,580 18,900 14,310 9,450 4,320
Production 324,000 351,000 378,000 405,000 432,000 459,000 486,000 513,000 540,000
Sales 320,760 347,490 374,220 400,950 427,680 463,590 490,860 518,130 544,320
Closing Stock 3,240 6,750 10,530 14,580 18,900 14,310 9,450 4,320 -

Assumed input output ratio is 0.6:1,i.e., to say that 1 kg of rhisomes produce 600 grams of turmeric powder
assumed that the output is sold in wholesale market
S. no. Assumptions
1 Electricity are semi-fixed cost. Rs. 150,000 pa is fixed, balance is variable at Rs. 14 per unit usage
2 Electricity usage in units is given below
Usage in units 75000 78750 82687.5 86821.875 91162.96875 95721.11719 100507.173 100507.173 100507.173
Variable cost 1050000 1102500 1157625 1215506.25 1276281.563 1340095.641 1407100.423 1407100.423 1407100.423
3 Asssumed that 90 days of purchases are average creditors maintained
4 Assumed that 60 days of sales are average debtors maintained by the business
5 It is assumed that insuarance cost is 2% of purchase price and this will increase 5% annually
6 Input cost of rhizomes would increase 10% per annum and there would be 5% wastage in processing on inputs
 (Wholly – owned subsidiary of NABARD)

i. More than 100 Full-time Consultants

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

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

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

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

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

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

Godowns godowns.