PM FME- Detailed Project Report of Groundnut Oil Unit

DETAILED PROJECT REPORT

GROUNDNUT OIL UNIT

UNDER PMFME SCHEME

National Institute of Food Technology Entrepreneurship and Management

Ministry of Food Processing Industries

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

Website: http://www.niftem.ac.in

Email: [email protected]

Call: 0130-2281089

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 PM FME- Detailed Project Report of Groundnut Oil Unit
TABLE OF CONTENTS

S No. Topic Page

Number
1. Project Summary 3
2. About the Product 4-5
3. Process Flow Chart 5-7
4. Economics of the Project 8-26
4.1. Basis & Presumptions 8
4.2. Capacity , Utilisation, Production & Output 9-10
4.3. Premises/Infrastructure 11
4.4. Machinery & Equipments 11-14
4.5. Misc. Fixed Assets 14
4.6. Total Cost of Project 14
4.7. Means of Finance 15
4.8 Term Loan 15
4.9. Term Loan repayment & interest schedule 15-18
4.10. Working Capital Calculations 18-19
4.11. Salaries/Wages 19-20
4.12. Power Requirement 20
4.13. Depreciation Calculation 21
4.14. Repairs & Maintenance 21
4.15. Projections of Profitability Analysis 22
4.16. Break Even Point Analysis 23
4.17. Projected Balance Sheet 24
4.18. Cash- Flow Statement 25
4.19. Debt-Service Coverage Ratio 26

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 PM FME- Detailed Project Report of Groundnut Oil Unit
1. PROJECT SUMMARY

1. Name of the proposed project : Groundnut Oil Unit

2. Nature of proposed project : Proprietorship/Company/Partnership
3. Proposed project capacity : 118800 Kg/annum(55,60,65,70,&75% capacity
utilization in 1st to 5th Year respectively)

4. Raw materials : Groundnuts

5. Major product outputs : Groundnut Oil
6. Total project cost : Rs.24.31 Lakh
• Land development, building & Civil : Nil
Construction
• Machinery and equipment’s : Rs.15.39 Lakh
• Miscellaneous Fixed Assets : Rs.1.70 Lakh
• Working capital : Rs.7.22 Lakh
8. Means of Finance
• Subsidy (max 10lakhs) : Rs.5.98 Lakh

• Promoter’s contribution (min10%) : Rs.2.42 Lakh

• Term loan : Rs.9.40 Lakh

• Working Capital Requirement : Rs.6.50 Lakh
9. Profit after Depreciation, Interest & Tax

• 1styear : Rs.1.69 Lakh

• 2ndyear : Rs.3.80 Lakh
• 3rd year : Rs.5.71 Lakh
• 4th year : Rs.7.48 Lakh
• 5th year : Rs.9.07 Lakh
11. Average DSCR : 3.30
12. Term loan repayment : 5 Years with 6 months grace period

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 PM FME- Detailed Project Report of Groundnut Oil Unit

2. ABOUT THE PRODUCT

2.1. PRODUCT INTRODUCTION:

The groundnut or peanut is a species in the family Fabaceae (commonly known as the bean, pea
or legume family). Groundnut oil, also known as peanut oil or arachis oil is a mild tasting
vegetable oil derived from peanuts. Groundnut oil is a kind of light yellow transparent edible oil
with clear color and lecture, pleasant fragrance and good taste, is relatively easy to digest.

Groundnut oil contains more than 80% unsaturated fatty acids (including 41.2%oleic acid and
37.6%linoleic acid). It also contains 19.9% of palmitic acid, stearic acid, arachidic acid and other
unsaturated fatty acids. The fatty acid composition of peanut oil is relatively good, therefore it is
easy for human bodies to digest and absorb. The groundnut is an annual herbaceous plant
growing 30 to 50 cm (1.0 to 1.6 ft) tall. The leaves are opposite, pinnate with flour leaflets (two
opposite pairs; no teminal leaflet); each leaflet is 1 to 7 cm (% to 2% in) long and 1to 3 cm (% to
1 inch)across.Peanuts have high oil content (45% - 52%) compared too many other oil seed
crops.

2.2 MARKET POTENTIAL:

The global groundnut oil market is highly congested with high level of competition among key
players. Moreover, since there is no unique functionality of groundnut oil when compared to other
vegetable oils, the demand is anticipated to remain stagnant throughout the forecast period. Peanut
oil is an edible vegetable oil that is derived from peanuts. The peanut oil market size has the
potential to grow by USD 1.90 billion during 2020-2024, and the market’s growth momentum will
accelerate during the forecast period.

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 PM FME- Detailed Project Report of Groundnut Oil Unit

Peanut or groundnut oil is a well-established product with a historically high use in several Asian
foods and cuisines. It is used either as a base for cooking (cooking oil) or to enhance the flavor of
the underlying food.

2.3 RAW MATERIAL DESCRIPTION:

Groundnuts are the main raw material for manufacturing. Groundnuts are a nutritious, hunger-
satisfying, low-glycemic snack. Groundnuts in India are available throughout the year due to a
two-crop cycle harvested in March and October. Ground Nuts are important protein crops in India
grown mostly under rain-fed conditions. The awareness and concern for quality amongst the Indian
groundnut shellers and processors are growing steadily.

Other than this plastic bottles and caps ae required for packaging of groundnut oil.

3. PROCESS FLOW CHART

A complete seed of Groundnut is called as pod and contains one to five kernels, which develops
underground in a needlelike structure called as peg. In the first step, the healthy and mature seeds
of ground nut are harvested from the authorized vendor and stored in the inventory.

In the next step, the foreign impurities like metal, plastics, husks etc. are separated from the kernels
manually. Then place the kernels over the vibratory pre-cleaner machine to remove dirt, sand and
stone particles. The Vibro sifter machine works on the principle of gyratory vibrations. The
material is separated on the basis of their particle size. Once the motor gets energized, vibration is
caused in the screen/sieve making the material to travel across the sieves according to its particle
size.

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 PM FME- Detailed Project Report of Groundnut Oil Unit

After this, the cleaned groundnuts are fed into Groundnut Decorticator Machine using screw
conveyors. Decortication of groundnut is a tedious and time consuming process. Groundnut
decorticator is operated on the shearing action blowering action and separating action. Firstly the
groundnut sare fed to the machine. Then groundnuts come in contact with the two members, one
is semi-circular net and another is roll shaft having soft wooden core. Semi-circular net is a
stationary member while the roll shaft of wood is rotating member. When the groundnut comes in
contact with these two members then the shearing action takes place there. Due to shearing action
(crushing) the groundnuts gets shelled and divided into two parts that is in the kernels and outer
shell of the groundnuts. There clearance is provided between the net and roll shaft. The clearance
provided is depends upon the size of the groundnuts which is to be decocted.

The kernels have to be prepared for efficient oil recovery by pressing. This is done by adjusting
their moisture content and temperature, while keeping the seeds hot (say 90-95℃) for a period of
30-60 minute. To perform this outer shells of groundnuts separated out in previous step are fed
into the cross tube boiler and burned to generate steam. This steam is further utilized to heat the
kernels for oil extraction. Kernels are stored in the containers and steam is processed at controlled
pressure to treat the kernels.

In the next step, the kernels are fed into oil expeller. The steam is also fed through the expeller to
maintain the temperature for oil extraction. The oil expeller crushes the peanut seeds to extract oil.
The oil extracted is collected in the containers. The oil cake obtained after first compression has
also some percentage of oil content remains in it.The cake is again fed into other oil expeller to
remove the oil content presence in it through conveyor. Steam is fed into the machine to maintain
the temperature. The oil extracted is stored in the containers.

The crude oil obtained after crushing has impurities present in it. In the next step, the crude oil is
fed into Filter machine. The pump feed the crude oil from container through pump and transfer the
oil to filter cloth. The filter cloth soak the fine impurities present in the oil. The filter oil is passed
through the tap present in the machine and collected in the tray. From the machine tray it is
collected into the container.

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 PM FME- Detailed Project Report of Groundnut Oil Unit

In the next step, the oil is tested for quality prospective regarding the presence of fatty acids in the
edible oil as per the fssai norms. After this, the oil is filled into the bottles as per the required
quantity using oil filling machine. It should be ensure that the bottle must be clean and dry before
filling. The caps are mounted precisely to ensure proper sealing.

In the next step, the expiry date, specifications are printed over the bottle using printing machine.
Printed labels of company information are pasted over the bottles. After this, the bottles are packed
and dispatched as per the required quantity.

FLOW CHART OF GROUNDNUT OIL MANUFACTURING PROCESS

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 PM FME- Detailed Project Report of Groundnut Oil Unit

4. ECONOMICS OF THE PROJECT

4.1. BASIS & PRESUMPTIONS

1. Production Capacity of Peanut oil is 400 Kgs per day. First year, Capacity has been taken
@ 55%.

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

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

been taken for 10 days.

4. Credit period to Sundry Debtors has been given for 06 days.

5. Credit period by the Sundry Creditors has been provided for 10 days.

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

1961.

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

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

9. Power Consumption has been taken at 22 KWH.

10. Selling Prices & Raw material costing has been increased by 5% & 5% respectively in the
subsequent years.

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4.2. CAPACITY, UTILIZATION, PRODUCTION & OUTPUT

COMPUTATION OF PRODUCTION OF GROUNDNUT OIL

Items to be Manufactured
Groundnut oil

Machine capacity Per hour 50 Kg

Total working Hours 8
Machine capacity Per Day 400 Kg
Working days in a month 25 Days
Working days per annum 300
Wastage Considered 10%
of
Peanut oil minimum extraction rate taken 30% input
Raw material requirement 400000 Kg
Final Product to be packed in 1 Litre Packet 118800
Number of Packets per annum 118800 Litre
Groundnut Cake 240000 Kg

Production of Groundnut oil

Production Capacity KG

1st year 55% 65,340

2nd year 60% 71,280

3rd year 65% 77,220

4th year 70% 83,160

5th year 75% 89,100

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 PM FME- Detailed Project Report of Groundnut Oil Unit

Raw Material Cost

Year Capacity Rate Amount
Utilisation (per Kg) (Rs. in lacs)
1st year 55% 66.00 145.20

2nd year 60% 69.00 165.60

3rd year 65% 72.00 187.20
4th year 70% 76.00 212.80
5th year 75% 80.00 240.00

COMPUTATION OF SALE

Particulars 1st year 2nd year 3rd year 4th year 5th year
Op Stock - 2,178 2,376 2,574 2,772

Production 65,340 71,280 77,220 83,160 89,100

Less : Closing
Stock 2,178 2,376 2,574 2,772 2,970
Net Sale 63,162 71,082 77,022 82,962 88,902
sale price per
packet 264.00 277.00 291.00 306.00 321.00
Sales (in Lacs) 166.75 196.90 224.13 253.86 285.38

COMPUTATION OF SALE(Groundnut
Cake)

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

Production 1,32,000 1,44,000 1,56,000 1,68,000 1,80,000

Net Sale 1,32,000 1,44,000 1,56,000 1,68,000 1,80,000

sale price per
packet 22.00 23.00 24.00 25.00 26.00
Sales (in Lacs) 29.04 33.12 37.44 42.00 46.80

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 PM FME- Detailed Project Report of Groundnut Oil Unit

4.3. PREMISES/INFRASTRUCTURE

The approximate total area required for complete factory setup is 1500-1800 Sq. ft. for smooth
production including storage area. It is expected that the premises will be on rental.

4.4. MACHINERY & EQUIPMENTS

S. Machine Machine Description Image

N.
1. Vibratory Pre- This machine is used to
cleaner machine remove foreign impurities
like husk, stone, plastics
from the harvested peanuts.
The Vibro sifter machine
works on the principle of
gyratory vibrations. The
material is separated on the
basis of their particle size.

2. Groundnut This machine divides the

Decorticator groundnut into two parts
Machine that is in the kernels and
outer shell of the
groundnuts by shearing
action.

3. Cross Tube The feed water is fed to the

Boiler cross drum through feed
water inlet. Then this water
comes down through the
down-comer pipe and
enters into inclined water
tube placed in hot chamber.
Here, the water becomes
hot and steam is produced

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 PM FME- Detailed Project Report of Groundnut Oil Unit
in the water which comes
into steam chamber.

4. Groundnut oil This machine is used to

expeller crush the groundnut kernels
to produce oil. The
expelling unit consists of a
screw expellant shaft.
Rotary screw arrangement
is made in the machine for
crushing the groundnut.
The heating of groundnut
seeds is achieved by
generated heat, which heats
the surrounding of seeds
passage.

5. Oil Filter Press An industrial filter press is

a tool used in separation
processes, specifically to
separate solids and liquids.
The machine stacks many
filter elements and allows
the filter to be easily opened
to remove the filtered
solids, and allows easy
cleaning or replacement of
the filter media.

6. Bottle filling This machine is used to fill

machine oil within the bottles at
sufficient pressure in
required quantity.

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 PM FME- Detailed Project Report of Groundnut Oil Unit
7. Other Oil collection tank, pump,
machineries & screw conveyor, bins etc.
equipments

Machine Unit Rate Price

Vibratory Pre-cleaner 1 1,50,000 1,50,000

machine (250 kg/hr)

Groundnut 1 45000 45000

Decorticator Machine
(300 kg/hr)

Cross Tube Boiler (30 1 80000 80000

kg/hr)

Groundnut oil 1 99000 99000

expeller (125-140
kg/hr)

Oil Filter Press (16 1 65000 65000

Plates – 16”x16”)

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 PM FME- Detailed Project Report of Groundnut Oil Unit
Bottle filling machine 1 8,50,000 8,50,000
(100 ml to 5 Ltr; 40
BPM)

Other machineries - 2,50,000 2,50,000

&equipments

Note: Cost of the machinery is approx. Rs.15.39 Lakhs excluding GST and other transportation
cost.

4.5. MISCELLANEOUS FIXED ASSETS

• Electricity connection
• Other equipment’s & fixture

4.6. TOTAL COST OF PROJECT

COST OF PROJECT
(in Lacs)

PARTICULARS Amount

Land & Building Owned/Rented

Plant & Machinery 15.39
Miscellaneous Assets 1.70
Working capital 7.22
Total 24.31

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4.7. MEANS OF FINANCE

MEANS OF FINANCE

PARTICULARS AMOUNT
Own Contribution (min 10%) 2.42
Subsidy @35%(Max. Rs 10 Lac) 5.98
Term Loan @ 55% 9.40
Working Capital (Bank Finance) 6.50
Total 24.31

4.8. TERM LOAN: Term loan of Rs.9.40 Lakh is required for project cost of Rs.24.31 Lakh.

4.9. TERM LOAN REPAYMENT & INTEREST SCHEDULE

REPAYMENT SCHEDULE OF TERM LOAN

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

1st month - 9.40 9.40 - - 9.40

2nd month 9.40 - 9.40 0.09 - 9.40

3rd month 9.40 - 9.40 0.09 - 9.40

4th month 9.40 - 9.40 0.09 9.40

5th month 9.40 - 9.40 0.09 9.40

6th month 9.40 - 9.40 0.09 9.40

7th month 9.40 - 9.40 0.09 0.17 9.23

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 PM FME- Detailed Project Report of Groundnut Oil Unit

8th month 9.23 - 9.23 0.08 0.17 9.05

9th month 9.05 - 9.05 0.08 0.17 8.88

10th month 8.88 - 8.88 0.08 0.17 8.70

11th month 8.70 - 8.70 0.08 0.17 8.53

12th month 8.53 - 8.53 0.08 0.17 8.36

0.92 1.04
2nd Opening Balance

1st month 8.36 - 8.36 0.08 0.17 8.18

2nd month 8.18 - 8.18 0.07 0.17 8.01

3rd month 8.01 - 8.01 0.07 0.17 7.83

4th month 7.83 - 7.83 0.07 0.17 7.66

5th month 7.66 - 7.66 0.07 0.17 7.48

6th month 7.48 - 7.48 0.07 0.17 7.31

7th month 7.31 - 7.31 0.07 0.17 7.14

8th month 7.14 - 7.14 0.07 0.17 6.96

9th month 6.96 - 6.96 0.06 0.17 6.79

10th month 6.79 - 6.79 0.06 0.17 6.61

11th month 6.61 - 6.61 0.06 0.17 6.44

12th month 6.44 - 6.44 0.06 0.17 6.27

0.81 2.09
3rd Opening Balance

1st month 6.27 - 6.27 0.06 0.17 6.09

2nd month 6.09 - 6.09 0.06 0.17 5.92

3rd month 5.92 - 5.92 0.05 0.17 5.74

4th month 5.74 - 5.74 0.05 0.17 5.57

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 PM FME- Detailed Project Report of Groundnut Oil Unit

5th month 5.57 - 5.57 0.05 0.17 5.40

6th month 5.40 - 5.40 0.05 0.17 5.22

7th month 5.22 - 5.22 0.05 0.17 5.05

8th month 5.05 - 5.05 0.05 0.17 4.87

9th month 4.87 - 4.87 0.04 0.17 4.70

10th month 4.70 - 4.70 0.04 0.17 4.53

11th month 4.53 - 4.53 0.04 0.17 4.35

12th month 4.35 - 4.35 0.04 0.17 4.18

0.58 2.09
4th Opening Balance

1st month 4.18 - 4.18 0.04 0.17 4.00

2nd month 4.00 - 4.00 0.04 0.17 3.83

3rd month 3.83 - 3.83 0.04 0.17 3.66

4th month 3.66 - 3.66 0.03 0.17 3.48

5th month 3.48 - 3.48 0.03 0.17 3.31

6th month 3.31 - 3.31 0.03 0.17 3.13

7th month 3.13 - 3.13 0.03 0.17 2.96

8th month 2.96 - 2.96 0.03 0.17 2.79

9th month 2.79 - 2.79 0.03 0.17 2.61

10th month 2.61 - 2.61 0.02 0.17 2.44

11th month 2.44 - 2.44 0.02 0.17 2.26

12th month 2.26 - 2.26 0.02 0.17 2.09

0.35 2.09
5th Opening Balance

1st month 2.09 - 2.09 0.02 0.17 1.91

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 PM FME- Detailed Project Report of Groundnut Oil Unit

2nd month 1.91 - 1.91 0.02 0.17 1.74

3rd month 1.74 - 1.74 0.02 0.17 1.57

4th month 1.57 - 1.57 0.01 0.17 1.39

5th month 1.39 - 1.39 0.01 0.17 1.22

6th month 1.22 - 1.22 0.01 0.17 1.04

7th month 1.04 - 1.04 0.01 0.17 0.87

8th month 0.87 - 0.87 0.01 0.17 0.70

9th month 0.70 - 0.70 0.01 0.17 0.52

10th month 0.52 - 0.52 0.00 0.17 0.35

11th month 0.35 - 0.35 0.00 0.17 0.17

12th month 0.17 - 0.17 0.00 0.17 -

0.12 2.09
DOOR TO DOOR 60 MONTHS
MORATORIUM
PERIOD 6 MONTHS
REPAYMENT PERIOD 54 MONTHS

4.10. WORKING CAPITAL CALCULATIONS

(in
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL Lacs)
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Finished Goods
6.24 7.07 8.00 9.01 10.10

Raw Material
2.42 2.76 3.12 3.55 4.00
Closing Stock 8.66 9.83 11.12 12.56 14.10

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COMPUTATION OF WORKING CAPITAL REQUIREMENT

TRADITIONAL METHOD (in Lacs)
Particulars Amount Own Margin Bank Finance
Finished Goods & Raw Material 8.66
Less : Creditors 4.84
Paid stock 3.82 10% 0.38 90% 3.44
Sundry Debtors 3.92 10% 0.39 90% 3.52
7.73 0.77 6.96

MPBF 6.96
WORKING CAPITAL LIMIT DEMAND ( from Bank) 6.50
Working Capital Margin 0.72

4.11. SALARY & WAGES

BREAK UP OF LABOUR CHARGES

Particulars Wages No of Total

Rs. per Month Employees Salary

Machine Operator 10,000 2 20,000

Supervisor 15,000 1 15,000
Skilled (in thousand rupees) 12,000 4 48,000
Unskilled (in thousand rupees) 8,500 4 34,000
Total salary per month 1,17,000
Total annual labour charges (in lacs) 14.04

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BREAK UP OF STAFF SALARY CHARGES

Particulars Salary No of Total

Rs. per Month Employees Salary
Helper 6,500 1 6,500

Manger 15,000 1 15,000

Administrative Staff 6,000 2 12,000
Total salary per month 33,500
Total annual Staff charges (in lacs) 4.02

4.12 POWER REQUIREMENT

Utility Charges (per month)

Particulars value Description
Power connection required 22 KWH
consumption per day 176 units

Consumption per month 4,400 units

Rate per Unit 10 Rs.
power Bill per month 44,000 Rs.

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4.13. DEPRECIATION CALCULATION

(in
COMPUTATION OF DEPRECIATION Lacs)
Miss.
Description Plant & Machinery Assets TOTAL
Rate of Depreciation 15.00% 10.00%
Opening Balance - - -

Addition 15.39 1.70 17.09

Total 15.39 1.70 17.09
Less : Depreciation 2.31 0.17 2.48
WDV at end of Year 13.08 1.53 14.61
Additions During The Year - - -
Total 13.08 1.53 14.61
Less : Depreciation 1.96 0.15 2.12
WDV at end of Year 11.12 1.38 12.50
Additions During The Year - - -
Total 11.12 1.38 12.50
Less : Depreciation 1.67 0.14 1.81
WDV at end of Year 9.45 1.24 10.69

Additions During The Year - - -

Total 9.45 1.24 10.69
Less : Depreciation 1.42 0.12 1.54
WDV at end of Year 8.03 1.12 9.15
Additions During The Year - - -
Total 8.03 1.12 9.15
Less : Depreciation 1.21 0.11 1.32
WDV at end of Year 6.83 1.00 7.83

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

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4.15. PROJECTIONS OF PROFITABILITY ANALYSIS

PROJECTED PROFITABILITY STATEMENT (in Lacs)

2nd 3rd 4th

PARTICULARS 1st year year year year 5th year
Capacity Utilisation % 55% 60% 65% 70% 75%

SALES
Gross Sale
Groundnut Oil 166.75 196.90 224.13 253.86 285.38
Groundnut Cake 29.04 33.12 37.44 42.00 46.80
Total 195.79 230.02 261.57 295.86 332.18
COST OF SALES
Raw Material Consumed 145.20 165.60 187.20 212.80 240.00
Electricity Expenses 5.28 6.07 6.98 8.03 8.83
Depreciation 2.48 2.12 1.81 1.54 1.32
Wages & labour 14.04 15.44 19.31 18.34 18.34
Repair & maintenance 4.89 5.75 6.54 7.40 8.30
Packaging 15.27 17.25 18.05 22.19 26.24
Cost of Production 187.16 212.23 239.88 270.30 303.04
Add: Opening Stock /WIP - 6.24 7.07 8.00 9.01
Less: Closing Stock /WIP 6.24 7.07 8.00 9.01 10.10
Cost of Sales 180.93 211.40 238.96 269.28 301.94
GROSS PROFIT 14.86 18.62 22.61 26.58 30.23
7.59% 8.09% 8.65% 8.98% 9.10%
Salary to Staff 4.02 4.66 5.69 6.54 7.20
Interest on Term Loan 0.92 0.81 0.58 0.35 0.12
Interest on working Capital 0.72 0.72 0.72 0.72 0.72
Rent 3.60 3.96 4.36 4.79 5.27
selling & adm exp 3.92 4.60 5.23 5.92 6.64
TOTAL 13.17 14.75 16.58 18.32 19.95
NET PROFIT 1.69 3.87 6.04 8.26 10.28
0.86% 1.68% 2.31% 2.79% 3.09%
Taxation - 0.07 0.33 0.78 1.21
PROFIT (After Tax) 1.69 3.80 5.71 7.48 9.07

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4.16. BREAK EVEN POINT ANALYSIS

BREAK EVEN POINT ANALYSIS

Year I II III IV V

Net Sales & Other Income 195.79 230.02 261.57 295.86 332.18
Less : Op. WIP Goods - 6.24 7.07 8.00 9.01
Add : Cl. WIP Goods 6.24 7.07 8.00 9.01 10.10

Total Sales 202.03 230.85 262.50 296.88 333.27

Variable & Semi Variable Exp.

Raw Material Consumed 145.20 165.60 187.20 212.80 240.00
Electricity Exp/Coal Consumption at
85% 4.49 5.16 5.94 6.83 7.51
Wages & Salary at 60% 10.84 12.06 15.00 14.93 15.32
Selling & adminstrative Expenses 80% 3.13 3.68 4.19 4.73 5.31
Interest on working Capital 0.715 0.715 0.715 0.715 0.715
Repair & maintenance 4.89 5.75 6.54 7.40 8.30
Packaging 15.27 17.25 18.05 22.19 26.24
Total Variable & Semi Variable Exp 184.54 210.22 237.62 269.59 303.41
Contribution 17.49 20.63 24.88 27.29 29.86

Fixed & Semi Fixed Expenses

Electricity Exp/Coal Consumption at
15% 0.79 0.91 1.05 1.20 1.32
Wages & Salary at 40% 7.22 8.04 10.00 9.95 10.21
Interest on Term Loan 0.92 0.81 0.58 0.35 0.12
Depreciation 2.48 2.12 1.81 1.54 1.32
Selling & adminstrative Expenses 20% 0.78 0.92 1.05 1.18 1.33
Rent 3.60 3.96 4.36 4.79 5.27
Total Fixed Expenses 15.80 16.76 18.84 19.03 19.58

Capacity Utilization 55% 60% 65% 70% 75%

OPERATING PROFIT 1.69 3.87 6.04 8.26 10.28
BREAK EVEN POINT 50% 49% 49% 49% 49%
BREAK EVEN SALES 182.54 187.58 198.77 207.02 218.53

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4.17. PROJECTED BALANCE SHEET

PROJECTED BALANCE SHEET (in Lacs)

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

Capital
opening balance 8.59 9.89 12.60 16.58
Add:- Own Capital 2.42
Add:- Retained Profit 1.69 3.80 5.71 7.48 9.07
Less:- Drawings 1.50 2.50 3.00 3.50 4.00
Subsidy/grant 5.98
Closing Balance 8.59 9.89 12.60 16.58 21.65
Term Loan 8.36 6.27 4.18 2.09 -
Working Capital Limit 6.50 6.50 6.50 6.50 6.50
Sundry Creditors 4.84 5.52 6.24 7.09 8.00
Provisions & Other Liab 0.40 0.50 0.60 0.72 0.86
TOTAL : 28.69 28.68 30.11 32.98 37.01

Assets
Fixed Assets ( Gross) 17.09 17.09 17.09 17.09 17.09
Gross Dep. 2.48 4.59 6.40 7.94 9.26
Net Fixed Assets 14.61 12.50 10.69 9.15 7.83

Current Assets
Sundry Debtors 3.92 4.60 5.23 5.92 6.64
Stock in Hand 8.66 9.83 11.12 12.56 14.10
Cash and Bank 1.50 1.74 3.07 5.36 8.44
TOTAL : 28.69 28.68 30.11 32.98 37.01

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 PM FME- Detailed Project Report of Groundnut Oil Unit
4.18. CASH FLOW STATEMENT

PROJECTED CASH FLOW STATEMENT (in Lacs)

1st 2nd 3rd 4th

PARTICULARS year year year year 5th year
SOURCES OF FUND

Own Margin 2.42

Net Profit 1.69 3.87 6.04 8.26 10.28
Depriciation & Exp. W/off 2.48 2.12 1.81 1.54 1.32
Increase in Cash Credit 6.50 - - - -
Increase In Term Loan 9.40 - - - -
Increase in Creditors 4.84 0.68 0.72 0.85 0.91
Increase in Provisions & Oth lib 0.40 0.10 0.10 0.12 0.14
Sunsidy/grant 5.98
TOTAL : 33.71 6.76 8.66 10.77 12.65
APPLICATION OF FUND
Increase in Fixed Assets 17.09
Increase in Stock 8.66 1.18 1.28 1.44 1.54

Increase in Debtors 3.92 0.68 0.63 0.69 0.73

Repayment of Term Loan 1.04 2.09 2.09 2.09 2.09

Drawings 1.50 2.50 3.00 3.50 4.00

Taxation - 0.07 0.33 0.78 1.21
TOTAL : 32.21 6.52 7.33 8.49 9.57

Opening Cash & Bank Balance - 1.50 1.74 3.07 5.36

Add : Surplus 1.50 0.25 1.33 2.28 3.08
Closing Cash & Bank Balance 1.50 1.74 3.07 5.36 8.44

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 PM FME- Detailed Project Report of Groundnut Oil Unit
4.19. DEBT SERVICE COVERAGE RATIO

CALCULATION OF D.S.C.R

1st 2nd 3rd 4th 5th

PARTICULARS year year year year year

CASH ACCRUALS 4.17 5.91 7.51 9.02 10.39

Interest on Term Loan 0.92 0.81 0.58 0.35 0.12

Total 5.09 6.73 8.10 9.38 10.51

REPAYMENT

Instalment of Term Loan 1.04 2.09 2.09 2.09 2.09

Interest on Term Loan 0.92 0.81 0.58 0.35 0.12

Total 1.97 2.90 2.67 2.44 2.21

DEBT SERVICE COVERAGE

RATIO 2.59 2.32 3.03 3.84 4.75
AVERAGE D.S.C.R. 3.30

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