MILKY WAY

CATTLE FARM
KOTHAMANGALAM, ERNAKULAM

Karukidam, Kothamangalam, Ernakulam, Kerala-686691

Prop: Thomas Ulahannan

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Name of the Proprietor : Thomas Ulahannan
Address : Varangalakudi, Karukidam P.O.
Kothamanagalam, Ernakulam, Kerala, India-686691

Taluk : Kothamangalam
Phone : 9846397447
Mobile number : 9846397447
PAN Number : AFSPU3114Q
Adhar Number : 840618128003
Nature of Business : Perennial
Type of Business : Trading
Summary:
Particulars Year 1 Year 2 Year 5
Revenue 1770000 1858500 1951425
Net Profit 403125 493257 587062
Profitability 22% 26% 30%

Ownership Structure Proprietor ship

Fixed Capital Required 980750
Working Capital Required 77900
Loan required 10 L
Loan Repayment Period 5 Years
Interest on loan 11.2%
DSCR 1.7

Primary Objective : To distribute carbonated soft drinks& juice and beverages drinks at
wholesale rate and quantity.

This business keep stock level is less than INR14L

Entrepreneur’s Expected Profit from the INR5L

Business (yearly)

Customer Segments.
Societies, Households, Hotels, Restaurants, Schools, Hospitals, Catering Units, Event
Management Companies etc.

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OVERVIEW

There are several business opportunities available in the agricultural industry and dairy farming is
one of them. One good thing about the agriculture industry is that there is market for all the produce
from the industry. A dairy farm is of course a thriving and profitable business because of
usefulness of beef and milk. People eat beef, drink their milk, and use their fur and skin. With
cattle milk, cheese can be made, along with other dairy products.

In recent time, the price of raw milk has been highly volatile, resulting to fluctuations in revenue
for the Dairy Farms industry. For example, in 2013, the price of milk bounced back from the
recession and pushed up by increasing global demand, resulting to appreciable growth in revenue
generation. It was projected that in 2019, an oversupply of dairy products is expected to cause
revenue to deep further in the industry.

However, despite all the volatility, the industry is expected to experience appreciable growth going
forward. For the time being, the price of cattle feed, which typically makes up about half of the
average dairy farm’s total expenses, has been nose diving as far back as 2017, significantly
strengthening industry profit margins.

Statistics has it that in India alone, there are about 42K registered and licensed dairy farms business
responsible for employing about 3.5L and the industry rakes in a whooping sum of INR2.8K
million annually. The industry is projected to enjoy 1.3 percent annual growth.

As an aspiring entrepreneur who is looking towards leveraging on the agriculture industry to

generate huge income, then one of your best bet is to start dairy farms business. Dairy farms
business is all about mass – breeding of cattle for the sole aim of generating raw milk in
commercial quantities and of cause making profits.

Just like any other business, if we are able to conduct our market research and feasibility studies
before launching our dairy farms, we were more likely not going to struggle to sell our raw milk
and other dairy products because there are loads of people out there they eat beef, drink milk and
industries that make use of byproducts from cattle in manufacturing their products.

Lastly, there are few barriers to entry into the dairy farms industry. Usually, all inputs are readily
available. In the nearest future, players in this industry may face the highest costs associated with
accessing technology, especially in relation to genetic modification engineering in livestock
breeding.

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EXECUTIVE SUMMARY

Milky Way Cattle Farm is a registered and class dairy farm that will be based in the outskirt of
Kothamangalam, Ernakulam, Kerala, India. We have done our detailed market research and
feasibility studies and we were able to secure a hundred acres of land to build our dairy farming
business.

Our dairy farms business is a going to be standard one hence will be involved in breeding of cows
and calf et al for the main aim of producing raw milk in commercial quantities.

We are in the dairy farms business because we want to leverage on the vast opportunities available
in the dairy farms industry, to contribute our quota in growing the Indian economy, in national
food (raw milk) production, meat, raw materials production for industries, to export agriculture
produce from India to other countries and over and above to make profit.

Milky Way Cattle Farm is well positioned to become one of the leading brands in the dairy farms
industry in Ernakulam Dist. at Kerala, which is why we have been able to source for the best hands
and equipment to run the business.

We have put process and strategies in place that will help us employ best practices when it comes
to producing raw milk in commercial quantities and conforming to the rules and regulation as
required by the regulating bodies in India.

At Milky Way Cattle Farm our customer’s best interest will always come first, and everything we
do will be guided by our values and professional ethics. We will ensure that we hold ourselves
accountable to the highest standards by meeting our client’s needs precisely and completely. We
will cultivate a working environment that provides a human, sustainable approach to earning a
living, and living in our world, for our partners, employees and for our clients.

Milky Way Cattle Farm is a private registered dairy farm that is owned and managed by Mr
Thomas Ulahannan and is immediate family members. The farm will be fully and single handedly
financed by the owner – Mr. Thomas Ulahannan and his immediate family members at least for a
period of time.

Before starting Milky Way Cattle Farm, Thomas Ulahannan has made an associated individual
small scale cattle farming with some leading dairy farm societies in Kothamangalam, Ernakulam,
Kerala, India and well over more than 10 years of experience.

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PRODUCTS& SERVICES

Milky Way Cattle Farm is a licensed dairy farms business that is committed to producing raw milk
in commercial quantities. We are in the dairy farms industry for the purpose of generating profits
and we are going to do all that is permitted by the laws in India to achieve our business goals.

These are the areas we will concentrate on in our dairy farms business. If need arises we will
definitely add more related animal breeding services to our list;
 Milking dairy cattle

 Dairy support services

 Dairy cattle farming

 Sale and export of dairy products

 Sale of Cattle and milk

 Processed Diary foods (Curd)

Dairy farming related consultancy and advisory services

VISION

Our Vision is to become one of the leading dairy farms business brands not just in Ernakulam, but
also in the state Kerala.

MISSION

Our mission is to sell our raw milk and other dairy farms products in commercial quantities both
locally, and for societies/ corporate firms. We want to build a dairy farms business that can
favorably compete with other leading dairy farms brands in Ernakulam and in the state Kerala.

BUSINESS STRUCTURE

Milky Way Cattle Farm is a dairy farm that intend starting small in Kothaanagalam- Ernakulam,
but hope to grow big in order to compete favorably with leading dairy farms in the industry in the
state Kerala.

We are aware of the importance of building a solid business structure that can support the picture
of the kind of world class business we want to own. This is why we are committed to only hire the
best hands in and around Ernakulam.

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At Milky Way Cattle Farm, we will ensure that we hire people that are qualified, hardworking,
dedicated, customer centric and are ready to work to help us build a prosperous business that will
benefit all the stake holders (the owners, workforce, and customers).

In view of the above, we have decided to hire qualified and competent hands to occupy the
employee positions.

ROLES AND RESPONSIBILITIES

 Proprietor/ Owner is responsible for providing direction for the business and overall
direction – i.e. leading the development and implementation of the overall organization’s
strategy. Also responsible for signing checks and documents on behalf of the company and
thus he evaluates the success of the organization.
 Farm Coordinator is responsible for the planning, management and coordinating all farm
activities across the various sections on behalf of the organization like overseeing the
accounting, costing and sale of raw milk and other dairy products. FC should also
responsible for preparing financial reports, budgets, and financial statements for the
organization. If necessary FC have to ensure developing and managing financial systems
and policies too.
 Field Workers / Contract Staffs are needed to responsible for milking& feeding cattle
and other livestock activities like change water in trough, breeding etc. as instructed by the
owner. They should also responsible for the activities like; cleaning the cattle ranch,
handles farm implements& machines, transport working tools and equipment etc.

SWOT ANALYSIS

Milky Way Cattle Farm do not intend to launch out a business on a trial and error platform hence
the need to conduct a proper SWOT analysis. We know that if we get it right from the onset, we
would have succeeded in creating the foundation that will help us build a standard dairy farm
business that will favorably compete with leading dairy farms in Kothamangalam and in the rest
part of Ernakulam Dist.

As a standard dairy farms business, we look forward to maximizing our strength and opportunities
and also to work around our weaknesses and threats. Here is a summary from the result of the
SWOT analysis that was conducted on behalf of Milky Way Cattle Farm;

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Strength: - Our strength as a cattle rearing business is the fact that we have healthy relationships
with loads of major players (agriculture merchants) in the dairy farms industry; both suppliers and
buyers of raw milk in commercial quantity within and outside of the Dist. Ernakulam.

We have some of the latest cattle rearing techniques; tools and equipment that will help us breed
our cattle in commercial quantities with less stress. Aside from our relationship (network) and
equipment, we can confidently boast that we have some the most experienced hands in the dairy
farms industry under our payroll.

Weakness: - Our weakness could be that we are a new dairy farms business in Kothamangalam-
Ernakulam and we may not have the required cash to pump into the publicity of our business. We
are aware of this and from our projection will overcome this weakness with time and turn it to a
major advantage for the business.

Opportunities: - The opportunities that are available to us cannot be quantified. The fact that
almost everybody in the world drinks milk and dairy farms products makes the business highly
marketable. We know that there are loads of homeowners, businesses and industries/ societies that
will source for raw milk and other dairy products both in Ernakulam and other districts of the state
Kerala. We are well positioned to take advantage of these opportunities as they come our way.

Threat: - Some of the threats and challenges that we are likely going to face when we start our
own dairy farms are global economic downturn that can impact negatively on household spending,
bad weather cum natural disasters (draughts, epidemics), unfavorable government policies and the
arrival of a competitor (a dairy farm or even cattle rearing farm that are also into production of raw
milk) within same location.

There is hardly anything you can do as regards this threats and challenges other than to be
optimistic that things will continue to work for your good.

MARKET ANALYSIS

Market Trends: - A close study of the dairy farming industry shows that most dairy farms that
has the capacity do not just concentrate in the commercial production of raw milk for households
and businesses that are involved in the production of fluid milk products, cheese, dry, condensed
and evaporated milk, creamery butter and yogurt et al.

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They go as far as establishing a standard milk and beef processing company in line with their core
business. It is a means of maximizing profits and increasing source of revenue generation.

Despite the fact that dairy farm has been in existence since time immemorial, that does not in any
way make the industry to be over saturated; dairy farmers are exploring new technology to
continue to improve raw milk production processes and also meat and milk preservation and
packaging process. The fact that there is always a ready market for raw milk and other dairy
products makes the business ever green.

Lastly, one of the notable trends in dairy farms industry is that with the recent advancement in
technology dairy farmers can now improve the various breeds of the animals they are breeding so
as to increase the quantity of milk they produce per time.

As a matter of fact, it is now easier for dairy farmers to comfortably import the kind of breed of
domestic animal they want to breed from any country of their choice and also advancement in
technology has made it easier to cross – breed different animal.

Target Market: - As expected, the target market of those who are the end consumer of dairy farms
produce and also those who benefits from the business value chain of the agriculture industry is
all encompassing; it is far – reaching.

Every household consumes produce from livestock farms be it meat, milk, and the skin (leather)
used for bags, belts and shoes production et al. So also a large chunk of manufacturing companies
depends on dairy farms for some of their raw materials. In essence a dairy farmer should be able
to sell his or her raw milk and other dairy products to as many people as possible.

We will ensure that we position our business to attract consumers of raw milk and other dairy
products not just Kothamangalam alone but also other districts of the state Kerala which is why
we will be exporting some of our dairy farm produce either in raw form or processed form to other
districts of the state.

Competitive Advantage: - From experience, entrepreneurs are known to flock towards an

industry that is known to generate consistent income which is why there are more dairy farms in
Ernakulam and of course in most parts of the state Kerala.

As a matter of fact, entrepreneurs are encouraged by the government to embrace commercial

farming/ dairy farming. This is so because part of the success of any state is her ability to cultivate
her own food and also export foods to other parts of the state.

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Milky Way Cattle Farm is fully aware that there are competitions when it comes to selling raw
milk and other dairy products all over the state, which is why we decided to carry out thorough
market research and feasibility studies so as to know how to take advantage of the available market
in Ernakulam and in other parts of the state.

We have done our homework and we have been able to highlight some factors that will give us
competitive advantage in the marketplace; some of the factors are effective and reliable dairy
farming processes that can help us sell our raw milk and other dairy products at competitive prices,
good network and excellent relationship management.

Another competitive advantage that we are bringing to the industry is the fact that we have
designed our business in such a way that we will operate an all – round standard dairy farms that
will be involved in diverse areas such as animal rearing and milk processing and packaging plant.
With this, we will be able to take advantage of all the available opportunities within the industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the
best within our category in the industry. It will enable them to be more than willing to build the
business with us and help deliver our set goals and achieve all our business aims and objectives.

SALES& MARKETING STRATEGY

It is a known fact that the reason why some dairy farms hardly make good profits is their inability
to sell off their raw milk and other dairy products to a larger market. In view of that, we decided
to set up a standard milk processing and packing plant to help us maximize profits.

Over and above, we have perfected our sale and marketing strategies first by networking with
agriculture merchants and companies/ societies that rely on raw materials from the dairy farms
industry who are likely to refer become our customers. In summary, Milky Way Cattle Farm will
adopt the following strategies in marketing our cattle rearing produce;

 Introduce our business by sending introductory letters to stake holders in the agriculture
industry, companies/ societies that rely on the dairy farms industry for their raw materials,
hotels and restaurants and agriculture produce merchant et al.
 Leverage on the internet and social medias to promote our business
 Engage in direct marketing
 Encourage the use of word of mouth marketing (referrals)

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Sources of Income: - Milky Way Cattle Farm is in the dairy farms industry for the purpose of
maximizing profits hence we have decided to explore all the available opportunities within the
industry to achieve our corporate goals and objectives. In essence we are not going to rely only on
the sale of raw milk and other dairy products to generate income for the business.

Below are the sources we intend exploring to generate income for Milky Way Cattle Farm;

 Milking dairy cattle

 Dairy support services
 Dairy cattle farming
 Sale dairy products
 Sale of Cattle and milk
 Sale of processed Diary products
 Dairy farming related consultancy and advisory services

Sales Forecast: - From the survey conducted, we were being able to discover that the sales
generated by a dairy farm depends on the size and capacity of the dairy farms and of course the
network of the business.

We have perfected or sales and marketing strategies and we are set to hit the ground running and
we are quite optimistic that we will meet or even surpass our set sales target of generating enough
income/ profits from the year of operations and build the business from survival to sustainability.

We have been able to critically examine the dairy farms industry and we have analyzed our chances
in the industry and we have been able to come up with the following sales forecast. The sales
projection is based on information gathered on the field and some workable assumptions as well
with respect to the nature of dairy farms business that we run.

Below are the projections that we were able to come up with for the first three years of running
Milky Way Cattle Farm;

First Revenue Year -: INR17,70,000/-

Second Revenue Year -: INR18,58,500/-
Third Revenue Year -: INR19,51,425/-
N.B: This projection is done based on what is obtainable in the industry and with the assumption
that there won’t be any major economic meltdown that can impact negatively on household
spending, bad weather cum natural disasters (draughts, epidemics), and unfavorable government
policies.

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PRICING STRATEGY

We are fully aware that some of the key factors that will help us sell our raw milk and other dairy
farm products at the right price that will guarantee that us making profits is dependent on our
strategy while some of the factors are beyond our control.

For example, if the climatic condition is unfavorable and if there is natural disaster in the location
where we have our dairy farm, then it will directly affect the prices of our raw milk and other dairy
farm products.

The truth is that, if we want to get the right pricing structure for our raw milk and other dairy
products, then we must ensure that we choose a good location for our dairy farms, choose a good
breed that will guarantee steady and multiple breeding (prolific breeds), cut the cost of running our
farm to the barest minimum and of course try as much as possible to attract buyer to our farm as
against taking our raw milk and other dairy products to the market to source for buyers; with this,
we would have successfully eliminate the cost of transporting the goods to the market and other
logistics that can impact on our operational cost.

We are quite aware that one of the easiest means of penetrating the market and acquiring loads of
customers for all our raw milk and other dairy products is to sell them at competitive prices hence
we will do all we can to ensure that the prices of our produce are going to be what other dairy
farms and even commercial livestock farmers who are into the sale of raw milk would look towards
beating.

One thing is certain, the nature of dairy farms business we are involved in makes it possible for
farmers to place prices for their raw milk and other dairy products based on their discretion without
following the benchmark in the industry. The truth is that it is one of the means of avoiding running
into loss. The easier you sell off your raw milk and other dairy products the better for your business.

Payment Options: - The payment policy adopted by Milky Way Cattle Farm is all inclusive
because we are quite aware that different customers prefer different payment options as it suits
them but at the same time, we will ensure that we abide by the financial rules and regulation of the
State Kerala, India.

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Here are the payment options that Milky Way Cattle Farm will make available to his clients;

 Payment via bank transfer

 Payment with cash
 Payment via online bank transfer
 Payment via check
 Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment
for farm produces purchase without any stress on their part. Our bank account numbers will be
made available on our website and promotional materials to clients who may want to deposit cash
or make online transfer for our raw milk and other dairy products.

PUBLICITY AND ADVERTISING STRATEGY

Any business that wants to grow beyond the corner of the street or the city they are operating from
must be ready and willing to utilize every available means (both conventional and non –
conventional means) to advertise and promote the business. We intend growing our business which
is why we have perfected plans to build our brand via every available means.

We know that it is important to create strategies that will help us boost our brand awareness and
to create a corporate identity for our cattle rearing business. Below are the platforms we want to
leverage on to boost our dairy farms brand and to promote and advertise our business;

 Place adverts on both print (newspapers and magazines) and electronic media platforms
 Sponsor relevant community based events / programs
 Leverage on the internet and social media platforms like; Instagram, Facebook, twitter,
YouTube, Google + et al to promote our business
 Distribute our fliers and handbills in target areas
 Contact corporate organizations and residence in our target areas by calling them up and
informing them of Milky Way Cattle Farm and the dairy farm produce we sell
 List our dairy farms in local directories
 Advertise our dairy farms in our official website and employ strategies that will help us
pull traffic to the site.
 Ensure that all our staff members wear our branded shirts and all our vehicles and trucks
are well branded with our company logo et al.

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FINANCIAL PROJECTIONS AND COSTING

When it comes to calculating the cost of starting a dairy farm, there are some key factors that
should serve as a guide. The capacity of the raw milk to be produced per time and other related
dairy products will determines the total cost of setting up the business.

Besides, in setting up any business, the amount or cost will depend on the approach and scale you
want to undertake. If you intend to go big by renting / leasing a big facility, then you would need
a good amount of capital as you would need to ensure that your employees are well taken care of,
and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and
aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference
in prices would be minimal and can be overlooked.

Below are some of the basic areas we will spend our start – up capital in setting up our dairy farms;

 The amount needed to acquire / lease a dairy farm land – Own

 The amount required for preparing the farm land (cattle ranch / dairy farm) – INR2.5K
 Legal expenses for obtaining licenses and permits – INR3.5K
 The total cost for hiring Business Consultant, Survey, DPR Management etc.– INR7.5K
 The amount required for the purchase of the first set of cattle – INR7L
 The cost for acquiring the required working tools and equipment et al– INR25K
 Operational cost for the first month (salaries of employees, payments of bills et) – INR80K

Going by the report from detailed research and feasibility studies conducted, we will need an
average of INR11L to start a standard dairy farms business in Kerala, India.

GENERATING FUNDING / STARTUP CAPITAL

No matter how fantastic your business idea might be, if you don’t have the required money to
finance the business, the business might not become a reality. Finance is a very important factor
when it comes to starting a business such as commercial poultry farming. No doubt raising start –
up capital for a business might not come cheap, but it is a task that an entrepreneur must go through.

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Milky Way Cattle Farm is a family business that is solely owned and financed by Mr. Thomas
Ulahannan and his immediate family members. They do not intend to welcome any external
business partners, which is why he has decided to restrict the sourcing of the start – up capital to
3 major sources.

These are the areas we intend generating our start – up capital;

 Generate part of the start – up capital from personal savings

 Source for soft loans from family members and friends
 Apply for loan from my Bank

N.B: We have been able to generate about INR1L (Personal savings INR70K and soft loan from
family members INR30K) and we are at the final stages of obtaining a loan facility
of INR10L from our bank. All the papers and document have been signed and submitted soon, so
the loan will be approved and any moment from now our account will be credited with the amount.

SUSTAINABILITY AND EXPANSION STRATEGY

The future of a business lies in the numbers of loyal customers that they have the capacity and
competence of the employees, their investment strategy and the business structure. If all of these
factors are missing from a business (company), then it won’t be too long before the business close
shop.

One of our major goals of starting Milky Way Cattle Farm is to build a business that will survive
off its own cash flow without the need for injecting finance from external sources once the business
is officially running. We know that one of the ways of gaining approval and winning customers
over is to sell our raw milk and other dairy products a little bit cheaper than what is obtainable in
the market and we are well prepared to survive on lower profit margin for a while.

Milky Way Cattle Farm will make sure that the right foundation, structures and processes are put
in place to ensure that our staff welfare are well taken of. Our firm’s culture is designed to drive
our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, incentive arrangement will be made available to all our management staff and
it will be based on their performance for a period of six years or more. We know that if that is put
in place, we will be able to successfully hire and retain the best hands we can get in the industry;
they will be more committed to help us build the business of our dreams.

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This project report is prepared by Tincy C Samuel (Project Manager, ARE Consultancy) as per the
surveys are conducted under her team. For any further clarifications you may be contacted at the
following address.

Project Manager
ARE Consultancy
Kollam, Kerala, India
Mob: +91 7907048573
E-Mail : [email protected]
WEB : https://areklm.com
Blog : https://areklm.blogspot.com/
Link : https://www.facebook.com/kollam.kerala.917907048573/

Page 15 of 24
 Attached Annexure

Sl. No. Annexure Page No.

1. FIXED CAPITAL ANALYSIS 17
2. WORKING CAPITAL 17
3. PRE-OPERATIVE EXPENSE 18
4. TOTAL CAPITAL 18
5. MEANS OF FINANACE 18
6. COST ANALYSIS 19
7. REVENUE ANALYSIS 19
PROFIT AND LOSS
8. 19
STATEMENT
9. CASH FLOW STATEMENT 20
10. BALANCE SHEET 21
11. PROFITABILITY RATIOS 21
12. RETURN ON INVESTMENT 21
DEBT SERVICE COVERAGE
13. 22
RATIO
LOAN REPAYMENT
14. 22
STATEMENT
15. DEPRECIATION TABLE 23

Page 16 of 24
 Annexure 1
FIXED CAPITAL ANALYSIS
Particulars Amount
Deposit (6 Acre) Own
Hiring Cows (10Nos) 700000
Construction Work 600 sq. Ft. 250000
CCTV 10500
Electrical Purpose 5000
Basic& Supporting Tools 10000
Water Sprinkler (5 Nos) 2250
Miscellaneous 3000
Total 980750

Annexure 2
WORKING CAPITAL FOR 1 MONTH
Particulars Amount
Vaccination& Treatment 2000
Feeding Raw Materials& Preparation 35500
Compost Pesticides etc. 2200
Transportation 1200
Unloading 500
Salary& Allowances 32500
Electricity bill 1300
Communication expenses 500
Miscellaneous expenses 2200
Total 77900

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 Annexure 3
PRE-OPERATIVE EXPENSES
Particulars Amount
Legal Registrations 3500
Preparation cost 4200
Consultation fees and DPR Formation 7500
Total 15200

Annexure 4
TOTAL CAPITAL
Annexure 1+Annexure 2+Annexure 3 1073850

Annexure 5
MEANS OF FINANCE
Own contribution 73850
Bank loan 1000000
Total Capital 1073850

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 Annexure 6
COST ANALYSIS
Year 1 Year 2 Year 3 Year 4 Year 5
Particulars
Amount Amount Amount Amount Amount
Vaccination& Treatment 24000 24480 24969.6 25468.992 25978.37184
Feeding Raw Materials& Preparation 486000 495720 505634.4 515747.088 526062.0298
Compost Pesticides etc. 26400 26928 27466.56 28015.8912 28576.20902
Transportation 14400 14688 14981.76 15281.3952 15587.0231
Unloading 6000 6120 6242.4 6367.248 6494.59296
Salary& Allowances 622000 634440 647128.8 660071.376 673272.8035
Electricity bill 15600 15600 15600 15600 15600
Communication expenses 6000 6000 6000 6000 6000
Miscellaneous expenses 26400 26400 26400 26400 26400
Depreciation 28075 25267 22740 20466 18420
Interest on Loan 112000 89600 67200 44800 22400
Total 1366875 1365243 1364363.52 1364217.99 1364791.03

Annexure 7
REVENUE ANALYSIS
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Milk 1620000 1701000 1786050 1875352.5 1969120.125
Selling calves 150000 157500 165375 173643.75 182325.9375
Total 1770000 1858500 1951425 2048996.25 2151446.063

Annexure 8
PROFIT AND LOSS STATEMENT
Revenue 1770000 1858500 1951425 2048996 2151446
Cost 1366875 1365243 1364363 1364217 1364791
Profit 403125 493257 587062 684779 786655

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 Annexure 9
CASH FLOW STATEMENT
Particulars Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Cash In Flow
Opening Balance 93100 281025 574282 961343 1446121
Owners Contribution 73850 0 0 0 0 0
Bank loan 1000000 0 0 0 0 0
Revenue 0 1770000 1858500 1951425 2048996 2151446
Account Receivable 0 0 0 0 0 0
Total Cash In Flow 1073850 1863100 2139525 2525707 3010339 3597567
Cash Out Flow
Hiring Cows (10Nos) 700000 0 0 0 0 0
Construction Work 600 sq. Ft. 250000 0 0 0 0 0
CCTV 10500 0 0 0 0 0
Electrical Purpose 5000 0 0 0 0 0
Basic& Supporting Tools 10000 0 0 0 0 0
Water Sprinkler (5 Nos) 2250 0 0 0 0 0
Miscellaneous 3000 0 0 0 0 0
Vaccination& Treatment 0 24000 24480 24969.6 25468.99 25978.37
Feeding Raw Materials&
0 486000 495720 505634.4 515747.09 526062.03
Preparation
Compost Pesticides etc. 0 26400 26928 27466.56 28015.9 28576.21
Transportation 0 14400 14688 14981.76 15281.4 15587.02
Unloading 0 6000 6120 6242.4 6367.25 6494.6
Salary& Allowances 0 622000 634440 647128.8 660071.38 673272.80
Electricity bill 0 15600 15600 15600 15600 15600
Communication expenses 0 6000 6000 6000 6000 6000
Miscellaneous expenses 0 26400 26400 26400 26400 26400
Depreciation 0 28075 25267 22740 20466 18420
Interest on Loan 0 112000 89600 67200 44800 22400
Loan Repayment 0 200000 200000 200000 200000 200000
Pre-Operative Expenses 0 15200 0 0 0 0
Total Cash out Flow 980750 1582075 1565243 1564363.52 1564217.99 1564791.03
Closing Balance 93100 281025 574282 961343.48 1446121.01 2032775.97

Page 20 of 24
 Annexure 10
BALANCE SHEET
Liability (A)
Particulars Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Owner's Contribution 73850 73850 73850 73850 73850 73850
Bank loan 1000000 800000 600000 400000 200000 0
Retained Earnings 0 403125 896382 1483444 2168223 2954878
Less Pre-operative expenses
0 15200 0 0 0 0
(Adjustment)
Total Liability 1073850 1261775 1570232 1957294 2442073 3028728
Asset (B)
Security Deposit (Shop) 0 0 0 0 0 0
Furniture& other assets 280750 252675 227407 204666 184200 165780
Cow (10Nos) 700000 700000 700000 700000 700000 700000
Cash balance 93100 281025 574282 961343 1446121 2032775
Live Stock 0 28075 68543 91285 111752 130173
Total Asset 1073850 1261775 1570232 1957294 2442073 3028728

Annexure 11
PROFITABILITY RATIOS
Gross Profit Ratio 69%
Net Profit Ratio 26.00%

Annexure 12
RETURN ON INVESTMENT
Total Investment 1073850
Net Profit 403125
Return on Investment 38%

Page 21 of 24
 Annexure 13
DEBT SERVICE COVERAGE RATIO
Net Income 403125
Interest Expenses 112000
Depreciation 28075
Total 543200
Interest Expenses 112000
Principal Repayment 200000
Total 312000
Debt Service Coverage Ratio 1.7

Annexure 14
LOAN REPAYMENT
Year Principal Amount Interest Rate Repayment Loan Balance Interest
1 1000000 11.2 200000 800000 112000
2 800000 11.2 200000 600000 89600
3 600000 11.2 200000 400000 67200
4 400000 11.2 200000 200000 44800
5 200000 11.2 200000 0 22400

Page 22 of 24
 Annexure 15
DEPRECIATION TABLE
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Book Depre: Book Depre: Book Deprec: Book Depre; Book Deprec: Book
Particulars
Value Amt Value Amt Value Amt Value Amt Value Amt Value
Construction
250000 25000 225000 22500 202500 20250 182250 18225 164025 16402.5 147622.5
Work 600 sq. Ft.
CCTV 10500 1050 9450 945 8505 850.5 7654.5 765.45 6889.05 688.905 6200.15
Electrical
5000 500 4500 450 4050 405 3645 364.5 3280.5 328.05 2952.45
Purpose
Basic&
10000 1000 9000 900 8100 810 7290 729 6561 656.1 5904.9
Supporting Tools
Water Sprinkler
2250 225 2025 202.5 1822.5 182.25 1640.25 164.025 1476.23 147.6225 1328.6
(5 Nos)
Miscellaneous 3000 300 2700 270 2430 243 2187 218.7 1968.3 196.83 1771.47
Total 280750 28075 252675 25267.5 227407.5 22740.75 204666.75 20466.68 184200.08 18420.01 165780.07

Page 23 of 24
How to Choose a DRM Software to protect your document? Page 24 of 24