NEW UPCOMMING DAIRY
STATEMENT OF INSTALLED CAPACITY, ACTUAL PRODUCTION & SALES
ITEM OF PRODUCT: PROCESSING OF MILK & ITS BY PRODUCTS
INSTALLED CAPACITY: NEW UNIT
IN LTR PER DAY 2,000.00
('000 Kg)
Total No. of working Days considered in year is 350 Days
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YEAR 1 2 3 4 5 6 7
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INSTALLED CAPACITY 2.00 2.00 2.00 2.00 2.00 2.00 2.00
CAPACITY UTILISATION 30 40 50 60 70 70 70
(%)
PRODUCTIONS
Rusk/Bread 500 0.53 0.70 0.88 1.05 1.23 1.23 1.23
Cookies 500 0.53 0.70 0.88 1.05 1.23 1.23 1.23
Buns/puff 300 0.32 0.42 0.53 0.63 0.74 0.74 0.74
Sp Cake 300 0.32 0.42 0.53 0.63 0.74 0.74 0.74
Cup Cake 200 0.21 0.28 0.35 0.42 0.49 0.49 0.49
Puff 200 0.21 0.28 0.35 0.42 0.49 0.49 0.49
Raw Material Required
Raw Material @ Rs. 40.00/- 84.00 112.00 140.00 168.00 196.00 196.00 196.00
Direct Processing Cost
Rusk/Bread 12.00 6.30 8.40 10.50 12.60 14.70 14.70 14.70
Cookies 12.00 6.30 8.40 10.50 12.60 14.70 14.70 14.70
Buns 15.00 4.73 6.30 7.88 9.45 11.03 11.03 11.03
Sp Cake 80.00 25.20 33.60 42.00 50.40 58.80 58.80 58.80
Cup Cake 60.00 12.60 16.80 21.00 25.20 29.40 29.40 29.40
Puff 20.00 4.20 5.60 7.00 8.40 9.80 9.80 9.80
Total Processing Cost 59.33 79.10 98.88 118.65 138.43 138.43 138.43
Cost of Production 143.33 191.10 238.88 286.65 334.43 334.43 334.43
FINISHED GOODS(FG)
SALES
Rusk/Bread 80.00 42.00 56.00 70.00 84.00 98.00 98.00 98.00
Cookies 90.00 47.25 63.00 78.75 94.50 110.25 110.25 110.25
Buns 90.00 28.35 37.80 47.25 56.70 66.15 66.15 66.15
Sp Cake 200.00 63.00 84.00 105.00 126.00 147.00 147.00 147.00
Cup Cake 400.00 84.00 112.00 140.00 168.00 196.00 196.00 196.00
Puff 98.00 20.58 27.44 34.30 41.16 48.02 48.02 48.02
Total Sales Realisation 285.18 380.24 475.30 570.36 665.42 665.42 665.42
GROSS MARGIN 141.86 189.14 236.43 283.71 331.00 331.00 331.00
FACTORY OVERHEADS
Labour Charges 20.00 38.00 39.90 41.90 43.99 46.19 48.50
Salaes Promotion exp 10.00 24.00 25.20 26.46 27.78 29.17 30.63
Repairs & Maintenance 2.50 2.63 2.76 2.89 3.04 3.19 3.35
Insurance of Factory 1.00 1.05 1.10 1.16 1.22 1.28 1.34
Depreciation 27.00 35.72 30.44 25.94 22.10 18.84 16.06
Rent, Taxes & other 1.00 1.05 1.10 1.16 1.22 1.28 1.34
misc. Factory Exp.
61.50 102.45 100.50 99.50 99.35 99.95 101.22
GROSS PROFIT 80.36 86.69 135.93 184.21 231.65 231.05 229.77
Gross Profit % 28.18 22.80 28.60 32.30 34.81 34.72 34.53
STATEMENT OF SELLING & ADMINISTRATIVE EXPENSES
SALARIES TO STAFF 4.00 4.40 4.84 5.32 5.86 6.44 7.09
PROMOTER SALARY 2.00 2.20 2.42 2.66 2.93 3.22 3.54
PRINTING & STATIONERY 1.50 1.58 1.65 1.74 1.82 1.91 2.01
OFFICE EXPENSES 1.50 1.58 1.65 1.74 1.82 1.91 2.01
SELLING EXPENSES 5.00 3.23 4.04 4.85 5.66 5.66 5.66
TOTAL 14.00 12.98 14.61 16.31 18.09 19.15 20.31
STATEMENT OF PREOPERATIVE & TRAIL RUN EXPENSES
COST TOTAL
INCURRED
ESTABLISHMENT EXPENSES 22.00 22.00
MISC. EXPENSES 12.84 12.84
MORTGAGE EXPENSES 3.50 3.50
38.34 38.34
COST OF PROJECT AND MEANS OF FINANCE
COST OF PROJECT
DESCRIPTION TOTAL
AMOUNT AMOUNT
LAND 10.00 10.00
BUILDING 105.00 105.00
PLANT & MACHINERY 225.00 225.00
MISC. FIXED ASSETS 15.00 15.00
PREOPERATIVE EXPENSES 10.00 10.00
365.00 365.00
CONTINGENCY 10.00
WORKING CAPITAL MARGIN 20.00
TOTAL COST OF PROJECT 395.00
MEANS OF FINANCE
1. EQUITY CAPITAL
PROMOTERS 98.75 98.75
2. TERM LOAN FROM AXIS BANK 276.25 276.25
375.00 375.00
ALLOCATION OF CONTINGENCY AND PREOPERARTIVE EXPENSES
PROJECT CONTINGENCY PRE.OPER TOTAL
COST EXPENSES AMOUNT
LAND & BUILDING 10 0.40 0.40 10.80
PLANT & MACHINERY 225 9.00 9.00 243.00
MISC. FIXED ASSETS 15 0.60 0.60 16.20
250.00 10.00 10.00 270.00
CALCULATION OF WORKING RESULTS
CAPACITY UTILISATION(%) 30 40 50 60 70 70 70
PRODUCTION (In Ltr & Kgs)
Rusk/Bread 500 0.525 0.700 0.875 1.050 1.225 1.225 1.225
Cookies 500 0.525 0.700 0.875 1.050 1.225 1.225 1.225
Buns 300 0.315 0.420 0.525 0.630 0.735 0.735 0.735
Sp Cake 300 0.315 0.420 0.525 0.630 0.735 0.735 0.735
Cup Cake 200 0.21 0.28 0.35 0.42 0.49 0.49 0.49
Puff 200 0.21 0.28 0.35 0.42 0.49 0.49 0.49
SALES ( Ltrs & Kgs)
GROSS SALES 285.18 380.24 475.30 570.36 665.42 665.42 665.42
285.18 380.24 475.30 570.36 665.42 665.42 665.42
EXPENDITURE
R.M. CONSUMPTION 84.00 112.00 140.00 168.00 196.00 196.00 196.00
DIRECT PROCESSING COST 59.33 79.10 98.88 118.65 138.43 138.43 138.43
FACTORY OVERHEAD 61.50 102.45 100.50 99.50 99.35 99.95 101.22
SUB- TOTAL 204.83 293.55 339.37 386.15 433.77 434.37 435.65
GROSS PROFIT 80.36 86.69 135.93 184.21 231.65 231.05 229.77
G.P. OF SALES 28.18 22.80 28.60 32.30 34.81 34.72 34.53
STATEMENT OF DEPRECIATION
W.D.V. METHOD ( AS PER INCOME TAX LAW)
1. LAND & BUILDINGS 10.80 9.72 8.26 7.02 5.97 5.07 4.31
LESS: DEPR.ECIATION 1.08 1.46 1.24 1.05 0.90 0.76 0.65
9.72 8.26 7.02 5.97 5.07 4.31 3.67
2. PLANT & MACHINERY 243.00 218.70 185.90 158.01 134.31 114.16 97.04
LESS: DEPR.ECIATION 24.30 32.81 27.88 23.70 20.15 17.12 14.56
218.70 185.90 158.01 134.31 114.16 97.04 82.48
3.MISC. FIXED ASSETS 16.20 14.58 13.12 11.81 10.63 9.57 8.61
LESS: DEPR.ECIATION 1.62 1.46 1.31 1.18 1.06 0.96 0.86
14.58 13.12 11.81 10.63 9.57 8.61 7.75
TOTAL ASSETS 270.00 243.00 207.28 176.84 150.91 128.80 109.96
TOTAL DEPRECIATION 27.00 35.72 30.44 25.94 22.10 18.84 16.06
AS PER I. TAX ACT
PROFITABILITY STATEMENT
GROSS PROFIT 80.36 86.69 135.93 184.21 231.65 231.05 229.77
INTEREST
ON TERM LOAN 19.68 24.82 21.97 19.12 16.27 13.42 6.00
ON WORKING CAPITAL 1.88 2.50 2.50 2.50 2.50 2.50 2.50
21.56 27.32 24.47 21.62 18.77 15.92 8.50
SELLING & ADM. EXPENSES 14.00 12.98 14.61 16.31 18.09 19.15 20.31
TOTAL 35.56 40.30 39.08 37.93 36.86 35.07 28.80
PROFIT BEFORE TAX 44.80 46.39 96.85 146.28 194.79 195.98 200.97
TAXATION 13.84 14.34 29.93 45.20 60.19 60.56 62.10
PROFIT AFTER TAX 30.95 32.06 66.92 101.08 134.60 135.42 138.87
PROFIT BEFORE INTEREST 93.36 109.43 151.76 193.84 235.67 230.74 225.53
DEPRECIATION & TAX
STATEMENT OF INTEREST ON TERM LOAN & WORKING CAPITAL
TERM LOAN I
OPENING BALANCE 276.25 246.25 216.25 186.25 156.25 126.25
ADD: RECEIPTS 276.25 - - - - - -
TOTAL 276.25 276.25 246.25 216.25 186.25 156.25 126.25
LESS: REPAYMENTS 0.00 30.00 30.00 30.00 30.00 30.00 20.00
CLOSING BALANCE 276.25 246.25 216.25 186.25 156.25 126.25
INTEREST @ 9.50% 19.68 24.82 21.97 19.12 16.27 13.42 6.00
WORKING CAPITAL FINANCE
OPENING BALANCE 0.00 25.00 25.00 25.00 25.00 25.00 25.00
ADD: RECEIPTS 25.00 0.00 0.00 0.00 0.00 0.00 0.00
CLOSING BALANCE 25.00 25.00 25.00 25.00 25.00 25.00 25.00
INTEREST @ 10.00% 1.88 2.50 2.50 2.50 2.50 2.50 2.50
PROJECTED CASH FLOW STATEMENT
SOURCES
1.INCREASE IN CAPITAL. 98.75 0.00 0.00 0.00 0.00 0.00 0.00
2. INCREASE NEW CAPITAL 40.00 40.00 40.00 40.00 40.00 40.00 40.00
3. INCREASE IN TERM LOAN 276.25 0.00 0.00 0.00 0.00 0.00 126.25
4. INCREASE IN BANK FIN. 25.00 0.00 0.00 0.00 0.00 0.00 0.00
5. PROFIT BEFORE TAX 44.80 46.39 96.85 146.28 194.79 195.98 200.97
6. DEPRECIATION 27.00 35.72 30.44 25.94 22.10 18.84 16.06
511.80 122.11 167.29 212.22 256.90 254.82 383.28
USES
1. INCREASE IN FIX. ASSETS 270.00 0 0.00 0.00 0.00 0.00 0.00
2.REPAYMENT OF T. LOAN 0.00 30.00 30.00 30.00 30.00 30.00 20.00
3. INCOME TAX 13.84 14.34 29.93 45.20 60.19 60.56 62.10
4. INVESTMENT 0.50 1.00 1.00 1.00 1.00 1.00 1.00
6. INCREASE IN W.CAPITAL 25.00 - - - - - -
TOTAL 309.34 45.34 60.93 76.20 91.19 91.56 83.10
OPENING BALANCE 0 202.45 279.23 385.59 521.61 687.32 850.58
NET SURPLUS 202.45 76.78 106.36 136.02 165.71 163.27 300.18
CLOSING BALANCE 202.45 279.23 385.59 521.61 687.32 850.58 1150.77
PROJECTED BALANCE SHEET
LIABILITIES
1. PROMOTERS CAPITAL 98.75 98.75 98.75 98.75 98.75 98.75 98.75
2. BANK TEM LOAN 276.25 246.25 216.25 186.25 156.25 126.25 0.00
3. BANK O.D. 25.00 25.00 25.00 25.00 25.00 25.00 25.00
4. NET PROFIT 30.95 63.01 129.94 231.02 365.62 501.04 639.91
430.95 433.01 469.94 541.02 645.62 751.03 763.66
129.70 161.76 228.69 329.77 464.37 599.79 738.66
ASSETS
FIXED ASSETS 243.00 207.28 176.84 150.91 128.80 109.96 93.90
INVESTMENT 0.50 1.50 2.50 3.50 4.50 5.50 6.50
LOANS & ADVANCES 2.50 2.50 2.50 2.50 2.50 2.50 2.50
CURRENT ASSETS
STOCK IN HAND 23.52 27.88 27.88 27.88 27.88 27.88 27.88
SUNDRY DEBTORS 71.76 114.00 114.00 114.00 114.00 114.00 114.00
CASH & BANK BALANCE 202.45 279.23 385.59 521.61 687.32 850.58 1150.77
543.73 632.39 709.32 820.40 965.00 1110.42 1395.55
RETAINED PROFIT 30.95 32.06 66.92 101.08 134.60 135.42 138.87
DEBT SERVICE COVERAGE RATIO
DEBT
INTEREST ON TERM LOAN 19.68 24.82 21.97 19.12 16.27
TERM LOAN REPAYMENT 0.00 30.00 30.00 30.00 30.00
TOTAL 19.68 54.82 51.97 49.12 46.27
SERVICE
PROFIT AFTER TAX 30.95 32.06 66.92 101.08 134.60
INTEREST 19.68 24.82 21.97 19.12 16.27
DEPRECIATION 27.00 35.72 30.44 25.94 22.10
77.64 92.60 119.33 146.14 172.97
D. S. C. R. 3.94 1.69 2.30 2.98 3.74
AVERAGE D. S. C. R. 3
BREAK EVEN POINT CALCULATION (RS. IN LACS)
SALES 285.18 380.24 475.30 570.36 665.42 665.42 665.42
LESS: VARIABLE EXPENSES
R.M. CONSUMED 84.00 112.00 140.00 168.00 196.00 196.00 196.00
DIRECT PROCESSING COST 59.33 79.10 98.88 118.65 138.43 138.43 138.43
FACTORY OVERHEAD 20.00 38.00 39.90 41.90 43.99 46.19 48.50
INTEREST ON W. CAPITAL 1.88 2.50 2.50 2.50 2.50 2.50 2.50
SELLING EXPENSES 5.00 3.23 4.04 4.85 5.66 5.66 5.66
170.20 234.83 285.32 335.89 386.57 388.77 391.08
170.20 234.83 285.32 335.89 386.57 388.77 391.08
CONTRIBUTION 114.98 145.41 189.98 234.47 278.85 276.65 274.34
P/V RATIO 0.40 0.38 0.40 0.41 0.42 0.42 0.41
FIXED EXPENSES
SALARIES & WAGES 6.00 6.60 7.26 7.99 8.78 9.66 10.63
REPAIRS & MAINTENANCE 2.50 2.63 2.76 2.89 3.04 3.19 3.35
OTHER MFG. EXPENSES 12.00 26.10 27.41 28.78 30.21 31.72 33.31
DEPRECIATION 27.00 35.72 30.44 25.94 22.10 0.00 0.00
INTEREST ON TERM LOAN 19.68 24.82 21.97 19.12 16.27 0.00 0.00
TOTAL 67.18 95.86 89.83 84.71 80.41 44.58 47.29
BREAK EVEN SALES 166.63 250.69 224.72 206.06 191.88 107.22 114.70
AS A % OF SALES 58.43 65.93 47.28 36.13 28.84 16.11 17.24
CASH BREAK EVEN SALES 99.66 157.28 148.58 142.97 139.14 107.22 114.70
AS A % OF SALES 34.95 41.36 31.26 25.07 20.91 16.11 17.24
PROJECTED SOURCES & APPLICATION
SOURCES
PROFIT BEFORE TAX 44.80 46.39 96.85 146.28 194.79 195.98 200.97
DEPRECIATION 27.00 35.72 30.44 25.94 22.10 18.84 16.06
INCREASE OF S. CAPITAL 98.75 0.00 0.00 0.00 0.00 0.00 0.00
INCREASE OF NEW CAPITAL 40.00 40.00 40.00 40.00 40.00 40.00 40.00
INCREASE OF BANK LOAN 276.25 0.00 0.00 0.00 0.00 0.00 126.25
INCREASE IN BANK O.D. 25.00 0.00 0.00 0.00 0.00 0.00 0.00
511.80 122.11 167.29 212.22 256.90 254.82 383.28
APPLICATION
INCREASE OF F. ASSETS 270.00 0.00 0.00 0.00 0.00 0.00 0.00
REPAYMENT OF T. LOAN 0.00 30.00 30.00 30.00 30.00 30.00 20.00
DEPOSIT PAID FOR GALA 2.50 0 0 0 0 0 0
INCOME TAX 13.84 14.34 29.93 45.20 60.19 60.56 62.10
INVESTMENTS 0.50 1.00 1.00 1.00 1.00 1.00 1.00
CHANGE IN W. CAPITAL 225.97 81.14 106.36 136.02 165.71 163.27 300.18
512.82 126.47 167.29 212.22 256.90 254.82 383.28
FUTURE PROSPECTS AND PROFITABILITY
The Statement of projected profitability, cash flow and Assets and Liabilities are furnished. The assumption
underlying the projection profitability are furnished based on the current input cost.
The Key Financial indicators are as under:- (Rs. In Lacs)
Year I II III IV V VI VII
PRODUCTION
Rusk/Bread 250 0.53 0.70 0.88 1.05 1.23 1.23 1.23
Cookies 250 0.53 0.7 0.875 1.05 1.225 1.225 1.225
Buns 150 0.32 0.42 0.525 0.63 0.735 0.735 0.735
Sp Cake 150 0.32 0.42 0.525 0.63 0.735 0.735 0.735
Cup Cake 100 0.21 0.28 0.35 0.42 0.49 0.49 0.49
Puff 100 0.21 0.28 0.35 0.42 0.49 0.49 0.49
NET INCOME
SALES 285.18 380.24 475.30 570.36 665.42 665.42 665.42
PBIDT 93.36 109.43 151.76 193.84 235.67 230.74 225.53
% OF NET SALES 32.74 28.78 31.93 33.99 35.42 34.68 33.89
PBT 44.80 46.39 96.85 146.28 194.79 195.98 200.97
% OF NET SALES 15.71 12.20 20.38 25.65 29.27 29.45 30.20
PAT 30.95 32.06 66.92 101.08 134.60 135.42 138.87
% OF NET SALES 10.85 8.43 14.08 17.72 20.23 20.35 20.87
D. S. C. R. 3.94 1.69 2.30 2.98 3.74 - -
DEBTS EQUITY RATIO 2.13 1.52 0.95 0.56 0.34 0.21 0.00
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