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  • Project Profiles 39

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    pradip_kumar
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    This document summarizes the capital investment, production costs, sales projections, and profitability of a coconut processing business. It estimates total capital investment of Rs. 1,894,000 funded through term loans of Rs. 1,420,500 and own funds of Rs. 473,500. Production costs are estimated at Rs. 958,000 per month with projected sales of Rs. 1,075,000 per month, yielding a net monthly profit of Rs. 117,000. The business is found to be technically feasible, economically viable and eligible for financing based on an 11% net profit ratio and ability to repay loans from cash flow.

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    This document summarizes the capital investment, production costs, sales projections, and profitability of a coconut processing business. It estimates total capital investment of Rs. 1,894,000 funded through term loans of Rs. 1,420,500 and own funds of Rs. 473,500. Production costs are estimated at Rs. 958,000 per month with projected sales of Rs. 1,075,000 per month, yielding a net monthly profit of Rs. 117,000. The business is found to be technically feasible, economically viable and eligible for financing based on an 11% net profit ratio and ability to repay loans from cash flow.

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    © All Rights Reserved
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    6 views2 pages

    Project Profiles 39

    Uploaded by

    pradip_kumar
    This document summarizes the capital investment, production costs, sales projections, and profitability of a coconut processing business. It estimates total capital investment of Rs. 1,894,000 funded through term loans of Rs. 1,420,500 and own funds of Rs. 473,500. Production costs are estimated at Rs. 958,000 per month with projected sales of Rs. 1,075,000 per month, yielding a net monthly profit of Rs. 117,000. The business is found to be technically feasible, economically viable and eligible for financing based on an 11% net profit ratio and ability to repay loans from cash flow.

    Copyright:

    © All Rights Reserved
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    of 2

    TOTAL CAPITAL INVESTMENT

    C
    a)
    b)
    Total
    Source of
    Fund
    a
    b
    c
    Total

    F
    1
    2
    3
    4
    5
    6

    Term loan
    working Capital Loan
    Own fund

    720000
    700500
    473500
    1894000
    1420500

    The Capacity utilization in this project has been worked out to be 60%n in the 1st
    year 70% in the 2nd year
    cost of production
    Total recurring expenditure
    934000
    Depreciation on Building and tank @5%
    1833
    Depreciation on machinery and equipments
    @10%
    2917
    Depreciation on hand tools@15%)
    438
    Depreciation on Office equipments@20%
    1000
    Interest on loan(15%)
    17756
    Total production cost
    957944
    Say
    958000

    Turnover (per month) in Rs


    1 Desiccated Coconut
    7.5 Tone @ Rs.130000 per ton)
    2 Coconut shell
    2 MT @35000per mt
    3 Coconut husk 75000 nos @ 40ps)
    TOTAL
    H

    960000
    934000
    1894000

    Total loan required

    Fixed Capital
    working Capital

    Net profit per month

    975000

    70000
    30000
    1075000
    117000

    Annual profit
    1404000
    (Before tax)
    J
    Net profit Ratio on sales
    11%
    The above net profit is sufficient for the repayment of loan amount of Rs. 1420500 @ Rs. 16920
    per month with interest and also to meet the monthly living expenses of the promoter and his
    family. The project is found to be technically feasible, economically viable and eligible for being
    financed. BEP and viable and eligible for being financed. BEP and repayment schedule are shown
    below

    BREAK EVEN POINT


    FIXED
    COST
    a)
    b)
    c)
    d)

    I)

    Depreciation
    Interest
    40% of salary and wages
    40% 0f other expenses

    Total
    2)
    Net profit

    6188
    17756
    44000
    5480
    73424
    117000

    BEP

    38.56%

    FIXED COSTx100
    (FIXED COST+NET PROFIT)

    REPAYMENT SCHEDULE
    Basis; Interest rate 15%, period of repayment 7yrs
    Amount repayable
    Year
    1st
    2nd
    3rd
    4th
    5th
    6th
    7th

    Opening
    Balance
    1420500
    1217570
    1014640
    811710
    608780
    405850
    202920

    principal
    202930
    202930
    202930
    202930
    202930
    202930
    202920

    Interest
    213825
    182636
    152196
    121757
    91317
    60878
    30438

    Total
    416755
    385566
    355126
    324687
    294247
    263808
    233358

    Closing Balance

    1217570
    1014640
    811710
    608780
    405850
    202920
    0

    LIST OF MACHINERY SUPPLIERS


    1) M/s. Avery India Ltd. Falnir Road Cross, Mangalore - 1.
    2) M/s. Ganapathi Bhandarkar and Company Azizuddin Road, Mangalore - 1.
    3) Premier Engg. Products, 3rd floor, C.R.C. Building, M.G. Road, Cochin - 682 011. (Dryer)
    Heat Flow Engineers, Plot 305, Netaji Nagar, Perungadi, Madras - 600 096. (Dryer)

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