PROJECT REPORT

ON
FOOD PROCESSING UNIT
 PROJECT AT A GLANCE

1 Name of the Unit Sri Vijaya Food Produts

2 Line of Activity Food Processing

3 Products Tomato Powder

4 New/Expansion/Modernization New

5 Constitution Proprietorship

6 Name of the Proprietor V. Narendra Reddy

7 Registered Address #6-161/2, Parasa, Pedakurapadu,

Guntur , A P - 522436

8 Site Location #6-161/2, Parasa, Pedakurapadu,

Guntur , A P - 522436
0

9 Cost of the Project 25,00,000.00

10 Feciliites Required Term Loan

11 Promoters Contribution 2,50,000.00

12 Loan From Bank 22,50,000.00

13 Moratorium 6 Months

14 Power Yes

15 BEP 44.04%

16 Average DSCR 2.56

Sri Vijaya Food Produts

Total Project Cost

S.No Particulars Amount

1 Cost of Tomato Grinding Pulverizer 0 5,00,000
Capacity - 100 kgs /hr
Nubmber of Machine- 1
Each Machine @ 5,00,000
2 Shed Cost 8,40,000
Area Required 60*70sft
Total sft required - 4200 sft
Cost of Const/sft @ 200
3 Tomato Powder Packing Machine- 100kg/hr 5,20,000
4 Tomato dryer Machine 4,00,000
5 Construction Cost 50,000
6 Packing Covers 70,000
7 Weighing Machine 8,000
8 Electrical Wiring 20,000
9 Field Laese 72,000
10 Misc 20,000
Total Cost 25,00,000

Means of Finance :Term Loan

S.NO Particulars Amount %

1 Promoters Conribution 2,50,000 10%

2 Bank Finance 22,50,000 90%
Total 25,00,000 100%

S.NO Particulars Amount %

Working Capital
Total Working Capital Required 10,27,500 84,452
Sri Vijaya Food Produts

Yield Statement - Tomato Power

Particulars Year 1 Year 2 Year 3 Year 4 Year 5
1.Total Installed Capacity in Kgs 500 500 550 550 600
3.No of Production Months in year 10 10 10 10 10
4.Total Installed Capacity 5000 5000 5500 5500 6000
5.Capacity Utilization 100.00% 100.00% 100.00% 100.00% 100.00%
5.Actual Capacity in kgs 5000 5000 5500 5500 6000
6.Selling Price per Kgs 500 500 500 500 500
7.Total Revenue /Year 25,00,000 25,00,000 27,50,000 27,50,000 30,00,000

Purchases
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
a) Cost
1.Chilly in Tons 2 2 2 2 2
2.Raw Chilly Ton 200000 200000 200000 200000 200000
Total Feed Cost 4,00,000 4,00,000 4,00,000 4,00,000 4,00,000

Cost
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
a) Packing Covers 7,500 7,500 8,500 8,500 10,000
b)Labour Cost
1.Manpower Required 5 5 5 5 5
2.Salary/Month 9,000 9,000 9,000 9,000 10,000
Total Salary 5,40,000 5,40,000 5,40,000 5,40,000 6,00,000

c) Repairs and Maintaince/ Year 50000 55000 60500 66550 73205

d)Insurance @2% on Animal Cost - - - - -

e) Electrical Cost/ Year 30,000 33,000 36,300 39,930 43,923

Sri Vijaya Food Produts

Projected Profitabilty Statement

Projected Projected Projected Projected Projected

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Income

Sales Revenue 25,00,000 25,00,000 27,50,000 27,50,000 30,00,000

Other Income - - - - -

Total 25,00,000 25,00,000 27,50,000 27,50,000 30,00,000

Expenditure

Cost of Tomato (Tons) 4,07,500 4,07,500 4,08,500 4,08,500 4,10,000

-
Salaries & Wages 5,40,000 5,40,000 5,40,000 5,40,000 6,00,000
-
Repairs and Maintaince 50,000 55,000 60,500 66,550 73,205

Electricity Charges 30,000 33,000 36,300 39,930 43,923

Misc Exp - - - - -

Finance Charges 2,98,125 1,59,375 1,14,375 69,375 24,375

Depriciation 2,50,000 2,50,000 2,50,000 2,50,000 2,50,000

Profit Before Tax 9,24,375 10,55,125 13,40,325 13,75,645 15,98,497

Provision for Tax - - 4,12,694 4,79,549

Profit After Tax 9,24,375 10,55,125 13,40,325 9,62,952 11,18,948

Net Profit Ratio 36.98% 42.21% 48.74% 35.02% 37.30%

BALANCE SHEET
Projected Projected Projected Projected Projected
Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Liabilities
Proprietors Capital
Capital 2,50,000 11,74,375 22,29,500 35,69,825 45,32,777
Reserves & Surplus 9,24,375 10,55,125 13,40,325 9,62,952 11,18,948
Less: Drawings - - - - -
Total 11,74,375 22,29,500 35,69,825 45,32,777 56,51,724
Secured Loans
Term Loan 18,00,000 13,50,000 9,00,000 4,50,000 -

Unsecured Loans - - - - -

Current Liabilities
Advances From Customers - - - - -
Sundry Creditors - - - - -
Other Provisions - - - - -

Total 29,74,375 35,79,500 44,69,825 49,82,777 56,51,724

Assets

Fixed Assets 22,50,000 20,00,000 17,50,000 15,00,000 12,50,000

Non Current Assets - - - - -

Current Assets
Sundry Debtors 48,611 48,611 53,472 53,472 58,333
Loans & Advances - - - - -
Cash & Bank Balances 6,75,764 15,30,889 26,66,353 34,29,304 43,43,391

Total 29,74,375 35,79,500 44,69,825 49,82,777 56,51,724

Sri Vijaya Food Produts

Term Loan 22,50,000.00

Rate 10.00%
Intallments Monthly 60
Insatallament Amount 37,500.00

Installment No Opening Balance Installment Amount Interest Closing Balance Yearly Interest
- 22,50,000.00 - 18,750 22,50,000
- 22,50,000.00 - 18,750 22,50,000
- 22,50,000.00 - 18,750 22,50,000
- 22,50,000.00 - 18,750 22,50,000
- 22,50,000.00 - 18,750 22,50,000 93,750
1 22,50,000.00 37,500.00 18,750 22,12,500
2 22,12,500.00 37,500.00 18,438 21,75,000
3 21,75,000.00 37,500.00 18,125 21,37,500
4 21,37,500.00 37,500.00 17,813 21,00,000
5 21,00,000.00 37,500.00 17,500 20,62,500
6 20,62,500.00 37,500.00 17,188 20,25,000
7 20,25,000.00 37,500.00 16,875 19,87,500
8 19,87,500.00 37,500.00 16,563 19,50,000
9 19,50,000.00 37,500.00 16,250 19,12,500
10 19,12,500.00 37,500.00 15,938 18,75,000
11 18,75,000.00 37,500.00 15,625 18,37,500
12 18,37,500.00 37,500.00 15,313 18,00,000 2,04,375
13 18,00,000.00 37,500.00 15,000 17,62,500
14 17,62,500.00 37,500.00 14,688 17,25,000
15 17,25,000.00 37,500.00 14,375 16,87,500
16 16,87,500.00 37,500.00 14,063 16,50,000
17 16,50,000.00 37,500.00 13,750 16,12,500
18 16,12,500.00 37,500.00 13,438 15,75,000
19 15,75,000.00 37,500.00 13,125 15,37,500
20 15,37,500.00 37,500.00 12,813 15,00,000
21 15,00,000.00 37,500.00 12,500 14,62,500
22 14,62,500.00 37,500.00 12,188 14,25,000
23 14,25,000.00 37,500.00 11,875 13,87,500
24 13,87,500.00 37,500.00 11,563 13,50,000 1,59,375
25 13,50,000.00 37,500.00 11,250 13,12,500
26 13,12,500.00 37,500.00 10,938 12,75,000
27 12,75,000.00 37,500.00 10,625 12,37,500
28 12,37,500.00 37,500.00 10,313 12,00,000
29 12,00,000.00 37,500.00 10,000 11,62,500
30 11,62,500.00 37,500.00 9,688 11,25,000
31 11,25,000.00 37,500.00 9,375 10,87,500
32 10,87,500.00 37,500.00 9,063 10,50,000
33 10,50,000.00 37,500.00 8,750 10,12,500
34 10,12,500.00 37,500.00 8,438 9,75,000
35 9,75,000.00 37,500.00 8,125 9,37,500
36 9,37,500.00 37,500.00 7,813 9,00,000 1,14,375
37 9,00,000.00 37,500.00 7,500 8,62,500
38 8,62,500.00 37,500.00 7,188 8,25,000
39 8,25,000.00 37,500.00 6,875 7,87,500
40 7,87,500.00 37,500.00 6,563 7,50,000
41 7,50,000.00 37,500.00 6,250 7,12,500
42 7,12,500.00 37,500.00 5,938 6,75,000
43 6,75,000.00 37,500.00 5,625 6,37,500
44 6,37,500.00 37,500.00 5,313 6,00,000
45 6,00,000.00 37,500.00 5,000 5,62,500
46 5,62,500.00 37,500.00 4,688 5,25,000
47 5,25,000.00 37,500.00 4,375 4,87,500
48 4,87,500.00 37,500.00 4,063 4,50,000 69,375
49 4,50,000.00 37,500.00 3,750 4,12,500
50 4,12,500.00 37,500.00 3,438 3,75,000
51 3,75,000.00 37,500.00 3,125 3,37,500
52 3,37,500.00 37,500.00 2,813 3,00,000
53 3,00,000.00 37,500.00 2,500 2,62,500
54 2,62,500.00 37,500.00 2,188 2,25,000
Installment No Opening Balance Installment Amount Interest Closing Balance Yearly Interest
55 2,25,000.00 37,500.00 1,875 1,87,500
56 1,87,500.00 37,500.00 1,563 1,50,000
57 1,50,000.00 37,500.00 1,250 1,12,500
58 1,12,500.00 37,500.00 938 75,000
59 75,000.00 37,500.00 625 37,500
60 37,500.00 37,500.00 313 - 24,375
Debt Service Coverage Ratio

Projected Projected Projected Projected Projected

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Profit After tax 9,24,375 10,55,125 13,40,325 9,62,952 11,18,948

Depriciation 2,50,000 2,50,000 2,50,000 2,50,000 2,50,000

Interest on term Loan 2,98,125 1,59,375 1,14,375 69,375 24,375

Total 14,72,500 14,64,500 17,04,700 12,82,327 13,93,323

Payment Obligation

TL Installments 4,50,000 4,50,000 4,50,000 4,50,000 4,50,000

Interest 2,98,125 1,59,375 1,14,375 69,375 24,375

Total 7,48,125 6,09,375 5,64,375 5,19,375 4,74,375

DSCR 1.97 2.40 3.02 2.47 2.94

Avg DSCR 2.56

Break Even Point

Projected Projected Projected Projected Projected

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Revenue 25,00,000 25,00,000 27,50,000 27,50,000 30,00,000

Variable Costs
Cost Tomato 4,07,500 4,07,500 4,08,500 4,08,500 4,10,000
Repairs and Maintaince 50,000 55,000 60,500 66,550 73,205
Total 4,57,500 4,62,500 4,69,000 4,75,050 4,83,205

Contribution 20,42,500 20,37,500 22,81,000 22,74,950 25,16,795

Fixed Costs
Salaries 5,40,000 5,40,000 5,40,000 5,40,000 6,00,000
Electricity Charges 30,000 33,000 36,300 39,930 43,923
Interest 2,98,125 1,59,375 1,14,375 69,375 24,375
Depriciation 2,50,000 2,50,000 2,50,000 2,50,000 2,50,000
Total 11,18,125 9,82,375 9,40,675 8,99,305 9,18,298

Break even Point 54.74% 48.21% 41.24% 39.53% 36.49%

Break even Sales 13,68,574 12,05,368 11,34,089 10,87,096 10,94,604

Margin of Safety Sales 11,31,426 12,94,632 16,15,911 16,62,904 19,05,396

Average BEP 44.04%