PROJECT REPORT ON DAIRY FARM

(LOCATION- KANUBARI, LONGHUA, DIST. LONGDING, ARUNACHAL PRADESH)

SHRI. TAICHAT BIHAM (PAN-CCSPB0082R)

1. BACKGROUND / INTRODUCTION: -

Dairy farming provides an excellent opportunity for self-employment of unemployed youth. It is

also an important source of income generation to small/marginal farmers and agricultural labourers.
Since agriculture is mostly seasonal, there is a possibility of finding employment throughout the year
for many persons through dairy farming. The white (milk) revolution of 70’s had made spectacular
landmarks in Indian milk production scenario. India is the largest milk producer of the world. The
increasing cost of feed ingredients and its seasonal variability can be reduced by undertaking fodder
cultivation. There is a huge opportunity in this field (dairy farming) as it is much under-developed
in North-Eastern India as compared to other states.

2. SCOPE OF THE PROJECT

The project envisages for Dairy form. The cost of the project is estimated at Rs. 1.5 Lakhs the
installed capacity of the plant is 15 Litters on 300 days working. The capacity utilization is assumed
to be at 70% in 1st year, 80% in 2nd year and 90% in 3rd year onwards.

3. SECTOR AND CONSTITUTIONS

A Farm by name and style Longhua Dairy Farm is a proprietor concern, the main object of the
farm is to Milk from cows. The Farm comes under Agricultural sector and does not require any
registration.

4. PROMOTER

Shri. Taichat Biham, S/o., Ato Biham, aged 45 years is residing at Kanubari, Longhua, Dist.
Longding, Arunachal Pradesh-786630. He is the sole proprietor of the firm. He is well versed in
cultivations. His family are having good back ground in Cultivation and Animal Husbandry. The
promoter has worked in similar farm for three years and got good experience in the animal farm. He
has got knowledge in the raring of the Cows and the marketing of Cows milk and its by-products.
With this experience he can manage the farm in a profitable manner.

5. MARKET AND DEMAND ASPECTS

In India, every one demands milk, but does not get it. The production of milk is mainly a rural
activity. Its output varies from region to region. The modernization of dairying has had its impact in
all levels from the production of milk in rural areas to its handling, transportation, processing and
retailing to other urban consumer. With the increasing demand of milk production in the country,

Project Report on a Dairy Farm (Prop. Taichat Biham)

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 PROJECT REPORT ON DAIRY FARM
(LOCATION- KANUBARI, LONGHUA, DIST. LONGDING, ARUNACHAL PRADESH)
SHRI. TAICHAT BIHAM (PAN-CCSPB0082R)
the surplus milk needs to be converted to long self-life production. Operation flood project has
emerged as a highly successful and a very promising programme of Indo-Eec Co-Operation in the
last 20 years.
The promoter has got tie-up with City milk for supply of the milk in bulk. The promoter will sell
all the milk produced in the farm to the said Dairy daily.

6. BASIS AND PRE ASSUMPTIONS

The following assumptions have been taken into consideration: -

i) Land for the construction of shed is available. Moreover, Bank loan will be taken for the
purchase of animal. A part of working capital will also be borrowed from the bank to start
with.
ii) The animals purchased will be freshly calved in 2nd and /or 3rd lactation having a female
calf at its heel.
iii) Replacement of raising heifers on the farm rather than purchasing.
iv) The amount of loan borrowed will be 75 per cent of the total with interest rate @13.05%
per annum.
v) There shall be adequate and timely availability of veterinary aid and breeding facilities,
green /dry fodders and concentrates, etc.
vi) Prices of inputs and outputs vary seasonally. These have been assumed at averages.

Project Report on a Dairy Farm (Prop. Taichat Biham)

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 PROJECT REPORT ON DAIRY FARM
(LOCATION- KANUBARI, LONGHUA, DIST. LONGDING, ARUNACHAL PRADESH)
SHRI. TAICHAT BIHAM (PAN-CCSPB0082R)
-: FINANCIAL ASPECTS :-

7. PROJECT AND MEANS OF FINANCE: -

SL PROJECT COST MEANS OF FINANCE

NO
PARTICULARS AMOUNT PARTICULARS AMOUNT
I LAND OWN
II SHEDS CONSTRUCTION 1,10,000.00 CAPITAL 1,10,000.00
III ANIMAL & OTHER EXPENSES 1,25,000.00
BANK LOAN
IV WORKING CAPITAL 25,000.00 1,50,000.00

TOTAL 2,60,000.00 TOTAL 2,60,000.00

8. FIXED CAPITAL

8.1 Land & Building (OWN)

Status of the Building OWN

Built up area 700 SQ FT
Office, Stores 100 SQ FT
Total Cost of Construction 1,10,000.00

8.2 Machinery and Equipment (OWN)

SL
PARTICULARS QUANTITY RATE AMOUNT
NO
1 Water Pump 1 7,000.00
2 Light and fittings 3,000.00
3 Other tools 10,000.00
TOTAL COST OF MACHINERIES 20,000.00
ADD. ELECTRIFICATION, INSTALLATION 5,000.00
GRAND TOTAL 25 ,000.00

NOTE:- The cost of Fixed Capital i.e. Building and Machinery & Equipment shall
be borne by the Farmer himself.

Project Report on a Dairy Farm (Prop. Taichat Biham)

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 PROJECT REPORT ON DAIRY FARM
(LOCATION- KANUBARI, LONGHUA, DIST. LONGDING, ARUNACHAL PRADESH)
SHRI. TAICHAT BIHAM (PAN-CCSPB0082R)
8.3 Other Fixed Expenditure (Non-recurring)

SL
PARTICULARS QUANTITY RATE AMOUNT
NO
1 Cost of COW 2 45000 90,000.00

2 Cost of BULL 1 35000 35,000.00

TOTAL COST OF ANIMAL AND OTHER EXPENSES 1,25,000.00

9. WORKING CAPITAL

Cost of Concentrated Feed (Yearly)

SL
PARTICULARS AMOUNT
NO
COST OF CONCENTRATED FEED FOR 3 (THREE) BONNE @2KG PER 30 DAYS
1 AND ADDITION WITH LOCAL CROPS @ (2KG/3 x 30) = 180 KG @Rs. 40/- per 7,200.00
KG
MISC. EXPENDITURE LIKE MEDICINE/SALT/UTENSILS/STEEL BASKET/ROPE
2 17,800.00
ETC L.S

3 LABOUR CAHRGES NIL

Total working capital requirement of the unit 25,000.00

10. TOTAL CAPITAL

a) Fixed Capital - Rs. 2,35,000.00
b) Working Capital (12 months) - Rs. 25,000.00

Total capital investment - Rs. 2,60,000.00

SUMMARY OF SOURCES OF FUNDS

PROMOTER'S
PARTICULARS TOTAL CAPITAL BANK LOAN
CONTRIBUTION

FIXED CAPITAL 2,35,000.00 1,25,000.00 1,10,000.00

WORKING CAPITAL 25,000.00 25,000.00 -

TOTAL 2,60,000.00 1,50,000.00 1,10,000.00

Project Report on a Dairy Farm (Prop. Taichat Biham)

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 PROJECT REPORT ON DAIRY FARM
(LOCATION- KANUBARI, LONGHUA, DIST. LONGDING, ARUNACHAL PRADESH)
SHRI. TAICHAT BIHAM (PAN-CCSPB0082R)

11. OVERALL SCENERIO OF PROFITABILITY (ANNUAL)

11.1 Cost of Production for 3 Years

SL YEARS
PARTICULARS
NO I II III
1 Working Capital 25,000 37,500 56,250
Depreciation on machinery and
2 3,750 3,188 2,709
equipment @ 15%
Interest on Total Capital Investment @
3 19,575 15,478 5,757
13.05%
4 Miscellaneous 15,000 22,500 33,750
Total: - 63,325 78,666 98,466

11.2 Annual Revenue Generation

YEARS
ITEM
I II III
Revenue From Sales
1 Milk 2,16,000 3,24,000 4,86,000

2 Other Dairy Products 35,000 52,500 78,750

Gross Sales 2,51,000 3,76,500 5,64,750

11.3 Overall Profitability Ratio:-

= Revenue – Cost of Productions

YEARS
PARTICULARS
I II III
Excess of Revenue over Cost 1,87,675 2,97,834 4,66,284
Overall Profitability Ratio 75% 79% 83%

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 PROJECT REPORT ON DAIRY FARM
(LOCATION- KANUBARI, LONGHUA, DIST. LONGDING, ARUNACHAL PRADESH)
SHRI. TAICHAT BIHAM (PAN-CCSPB0082R)

12. ESTIMATED AND PROJECTED PROFIT AND LOSS ACCOUNT FOR 3 YEARS:

YEARS
PARTICULARS Estimated Projected Projected
2021-22 2022-23 2023-24
A) Revenues:
Turnover (refer revenue generation table
2,51,000 3,76,500 4,99,950
above)
TOTAL (A): 2,51,000 3,76,500 4,99,950
B) Direct Expenses
Raw Materials 25,000 37,500 56,250
Wages to Skilled Workers and Helper 19,800 25,740 36,036
TOTAL (B): 44,800 63,240 92,286
GROSS PROFIT (A-B): 2,06,200 3,13,260 4,07,664

C) Administration Expenses
Salary to Manager cum Supervisor - - -
Electric Expenses 10,668 16,002 24,003
Transportation and Insurance 59,628 83,479 91,827
Miscellaneous Expenses 15,000 22,500 33,750
TOTAL (C): 85,296 1,21,981 1,49,580

Profit Before Depreciation, Interest & Tax

D) 1,20,904 1,91,279 2,58,084
(G.P. - C)

E) Depreciation 3,750 3,188 2,709

Profit Before Interest & Tax 1,17,154 1,88,091 2,55,375
Interest on Bank Loan 19,575 15,478 5,757
Interets on Unsecured Loan 13,500 4,500 10,800
Profit Before Tax 84,079 1,68,113 2,38,817
F) Income Tax (Exempted) - - -

G) Profit After Tax 84,079 1,68,113 2,38,817

H) Depreciation Add Back 3,750 3,188 2,709

I) Cash Profit 87,829 1,71,301 2,41,527

Project Report on a Dairy Farm (Prop. Taichat Biham)

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 PROJECT REPORT ON DAIRY FARM
(LOCATION- KANUBARI, LONGHUA, DIST. LONGDING, ARUNACHAL PRADESH)
SHRI. TAICHAT BIHAM (PAN-CCSPB0082R)

13. ESTIMATED AND PROJECTED BALANCE SHEET FOR 3 YEARS:

YEARS
PARTICULARS Estimated Projected Projected
2021-22 2022-23 2023-24
LIABILITIES
CAPITAL ACCOUNT
Opening Balance - 96,186 2,24,182
Add: Additional Capital Introduced 1,50,000 1,50,000 1,50,000
Add: Profit during the year 84,079 1,68,113 2,38,817
Less: Withdrawal 1,37,893 1,90,117 2,81,270
SUB TOTAL : 96,186 2,24,182 3,31,730
SECURED LOANS
Bank Loan 1,50,000 79,861 0
UNSECURED LOANS
Loan from Family & Relatives 50,000 50,000 1,20,000
CURRENT LIABILITIES
Sundry Creditors 2,500 4,875 7,875
Expenses Payable 15,427 18,398 21,998
Provision for Income Tax - - -
Interest Payable on Unsecured Loans 375 375 900
EMI Payable 1,631 7,135 7,135

TOTAL Rs. 3,16,119 3,84,826 4,89,638

ASSETS
FIXED ASSETS:-
Opening Balance - 1,46,250 1,43,063
Add : Additions during the Year 1,50,000 - -
GROSS BLOCK 1,50,000 1,46,250 1,43,063
Less : Depreciation 3,750 3,188 2,709
NET BLOCK 1,46,250 1,43,063 1,40,353
Loans & Advances
Advances to Suppliers 50,000 55,000 50,000
CURRENT ASSETS
Inventories 15,654 39,744 61,229
Sundry Debtors 25,100 56,475 84,992
Cash & Cash Equivalents 54,115 65,544 1,28,064
Security Deposit 25,000 25,000 25,000

TOTAL Rs. 3,16,119 3,84,826 4,89,638

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 PROJECT REPORT ON DAIRY FARM
(LOCATION- KANUBARI, LONGHUA, DIST. LONGDING, ARUNACHAL PRADESH)
SHRI. TAICHAT BIHAM (PAN-CCSPB0082R)

14. KEY FINANCIAL RATIOS:

YEARS
PARTICULARS
I II III

NET PROFIT RATIO IN % 33.50% 44.65% 47.77%

(Net Profit/Gross Sales)

DEBT- EQUITY RATIO 1.56x 0.36x 0.00x

(Loan Liability/Equity)

DEBT-SERVICE COVERAGE RATIO (DSCR) 5.6x 8.3x 18.7x

(Earning available for Debt Services/Interest+Instalments)

Hence, with the analysis of all aspects we can term the project as operationally feasible as well as
economically justifiable.

(Signature)

Taichat Biham
(Proprietor)
Longhua Dairy Farm

Project Report on a Dairy Farm (Prop. Taichat Biham)

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 PROJECT REPORT ON DAIRY FARM
(LOCATION- KANUBARI, LONGHUA, DIST. LONGDING, ARUNACHAL PRADESH)
SHRI. TAICHAT BIHAM (PAN-CCSPB0082R)

ANNEXURES
BANK LOAN REPAYMENT DETAILS (ESTIMATION)
Term Loan Amount ₹ 1,50,000.00
Tenor of Term Loan (in Months) 36
Moratorium Period (in Months) 12
Repayment Period (in Months) 24
EMI Amount Rs. 7,135/-
ROI 13.05%
Subsidy Amount ₹ 0.00
Loan after adjusting Subsidy ₹ 1,50,000.00

EMI DETAILS TO BE PAID IN 3 YEARS:

Payment Opening EMI Principal Interest Closing Remarks, If
Number Balance Amount Part Part Balance any
1 1,50,000 1,631 0 1,631 1,50,000 Moratorium Period
2 1,50,000 1,631 0 1,631 1,50,000 Moratorium Period
3 1,50,000 1,631 0 1,631 1,50,000 Moratorium Period
4 1,50,000 1,631 0 1,631 1,50,000 Moratorium Period
5 1,50,000 1,631 0 1,631 1,50,000 Moratorium Period
6 1,50,000 1,631 0 1,631 1,50,000 Moratorium Period
7 1,50,000 1,631 0 1,631 1,50,000 Moratorium Period
8 1,50,000 1,631 0 1,631 1,50,000 Moratorium Period
9 1,50,000 1,631 0 1,631 1,50,000 Moratorium Period
10 1,50,000 1,631 0 1,631 1,50,000 Moratorium Period
11 1,50,000 1,631 0 1,631 1,50,000 Moratorium Period
12 1,50,000 1,631 0 1,631 1,50,000 Moratorium Period
13 1,50,000 7,135 5,504 1,631 1,44,496
14 1,44,496 7,135 5,563 1,571 1,38,933
15 1,38,933 7,135 5,624 1,511 1,33,309
16 1,33,309 7,135 5,685 1,450 1,27,624
17 1,27,624 7,135 5,747 1,388 1,21,877
18 1,21,877 7,135 5,809 1,325 1,16,068
19 1,16,068 7,135 5,873 1,262 1,10,195
20 1,10,195 7,135 5,936 1,198 1,04,259
21 1,04,259 7,135 6,001 1,134 98,258
22 98,258 7,135 6,066 1,069 92,192
23 92,192 7,135 6,132 1,003 86,060
24 86,060 7,135 6,199 936 79,861
25 79,861 7,135 6,266 868 73,594
26 73,594 7,135 6,334 800 67,260

Project Report on a Dairy Farm (Prop. Taichat Biham)

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 PROJECT REPORT ON DAIRY FARM
(LOCATION- KANUBARI, LONGHUA, DIST. LONGDING, ARUNACHAL PRADESH)
SHRI. TAICHAT BIHAM (PAN-CCSPB0082R)
27 67,260 7,135 6,403 731 60,857
28 60,857 7,135 6,473 662 54,384
29 54,384 7,135 6,543 591 47,840
30 47,840 7,135 6,615 520 41,226
31 41,226 7,135 6,686 448 34,539
32 34,539 7,135 6,759 376 27,780
33 27,780 7,135 6,833 302 20,948
34 20,948 7,135 6,907 228 14,041
35 14,041 7,135 6,982 153 7,058
36 7,058 7,135 7,058 77 0

BRIEF SUMMARY (YEAR WISE)

Principal Interest Net Balance at

Instalments Interest
Year Amount Amount Interest the End of
Paid Subsidy
Paid Paid Payable the Year
1st Year 19,575 0 19,575 0 19,575 1,50,000
2nd Year 85,617 70,139 15,478 0 15,478 79,861
3rd Year 85,617 79,860 5,757 0 5,757 0

NOTE: The above Loan Repayment Table is prepared only for projection of the Interest and
Principal repayment. It may vary depending on the mechanism that the bank apply.

(Signature)

Taichat Biham
(Proprietor)
Longhua Dairy Farm

--End--

Project Report on a Dairy Farm (Prop. Taichat Biham)

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