MODEL SCHEME 2014

MODEL PROJECT
SMALL SCALE CASHEW PROCESSING UNIT

November 2014

NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
(NABARD)
Plot No C-24, "G" Block Bandra-Kurla Complex
P.B.No 8121
Bandra (E)
Mumbai - 400051
Tel : (91) 022-26539895 / 96 /99
www.nabard.org

i

1.0

Contents
Introduction .............................................................................................................. 1

2.0

Promoters and Type of Concern .............................................................................. 1

3.0

Location of Project ................................................................................................... 2

4.0

Products and Uses .................................................................................................... 2

5.0

Market Potential ....................................................................................................... 2

5.1

Domestic Market .................................................................................................. 2

5.2

Export Market ...................................................................................................... 2

6.0

Manufacturing Process............................................................................................. 3

7.0

Quality Control and Quality Assurance ................................................................... 4

8.0

Raw and Packing Materials ..................................................................................... 4

9.0

Project Cost ............................................................................................................. 4

9.1

Land and Land Development ............................................................................... 5

9.2

Buildings and Civil Works ................................................................................... 5

9.3

Plant and Machinery............................................................................................. 5

9.4

Miscellaneous Assets ........................................................................................... 6

10.0 Working Capital Requirement ................................................................................. 6
11.0

Means of Finance ................................................................................................. 7

11.1

Margin Money .................................................................................................. 7

11.2

Bank Loan......................................................................................................... 8

11.3

Grant & Subsidy ............................................................................................... 8

11.4

Interest Rate ...................................................................................................... 8

11.5

Security ............................................................................................................. 8

11.5.1

ii

Primary Security ........................................................................................... 9

...................2 Collateral Security ...... 10 15.... 19 iii .....................................................................5....................11.............................................................................................................................3 Hypothecation of Stocks ................................................................................................................................................ 13 Annexure II ..................... 11 16...................................................................................................................................................................... Approvals/ Clearance Required ......................................0 Implementation Schedule................. 12 Annexure I .1 Prior to establishment ....................................................... 10 14.......................................................................... 14 Annexure III ................... 10 14..........1 Financial Indicators ........................................................................................................................ 9 13.......0 Manpower Requirement.........................0 Financial Analysis ....... 9 12.............................................................................. 10 14................... 17 Annexure IV ....................................2 Repayment Period and Debt Service Coverage Ratio (DSCR)................................................2 After establishment .....5.............................................................................................................0 Depreciation Schedule ..................0 Govt............................................................................ 18 Annexure V ....................................................... 9 11............................................ 11 15............. 11 15...............................

gov. partnership firm or a joint stock company. Partnership firms should execute a partnership deed as per Indian Partnership Act 1932 on a Non Judicial Stamp Paper as per the Stamp Act of the State Government and register the partnership firm with the Ministry of Corporate affairs. public limited or producers’ company as per The Company Act 2013. Maharashtra. Orissa.mca. Individual & proprietary concern should have their Permanent Account Number (PAN) and should preferably have a bank account. Mechanization in cashew processing is picking up slowly. These units together have processing capacity of more than 8 lakh tons per annum. The cashew apple being fleshy and sweet in taste is used to prepare a fermented fruit drink known as Feni. The dried raw cashew seeds are processed to cashew nut for marketing. The seeds are separated from cashew apple and dried in the sun for 4-5 days. These are collected and processed to get cashew nut. processing of cashew is manual and highly labour intensive process. the details of which are given on the website of Ministry at http://www. More than two third of cashew processing units are in Kerala. The cashew industry is highly unorganized and scattered. In India.html. the cashew apple along with seed falls down on the ground.gov. whereas remaining are scattered in the other states. Kerala is the leading state in processing of cashew. The commercial cultivation of cashew is taken up mainly in eight states in India namely Andhra Pradesh. This model is prepared to provide guidance to start a new small scale cashew processing unit. The current production in India accounts for 19. 1 . 2. proprietary concern.MODEL SCHEME 2014 1. Kerala.in/MinistryV2/companiesact.mca. At the time of maturity. Women constitute almost 90 per cent of labour force in cashew industry. Details of procedure to be followed are available at: http://www.pdf. Goa.46 per cent of global production.in/Ministry/actsbills/pdf/Partnership_Act_1932. Gujarat and Tamil Nadu. A joint stock company can be formed as private limited. Karnataka.0 Introduction Cashew is one of the most sought after nuts among dry fruits obtained from an exotic tree species.0 Promoters and Type of Concern New entrepreneurs may start their business as an individual. Cashew nut is formed outside the fleshy fruit known as cashew apple.

4. The demand for cashew nut increases during festive occasions such as Diwali.0 Location of Project One can start cashew processing unit at any location in the country. Another important byproduct of cashew industry is cashew nut shell liquid (CNSL) which is produced from cashew shells.620 MT of cashew nut valued at $825. which is one the famous dry fruits. 13. These are used in many sweet preparations.89 million (Rs. Africa etc.0 Products and Uses It is not possible to consume raw cashew and cashew apple. 955 crore) to various countries. for processing and are then exported to various 2 . During 2013-14. Ramadan. However. 5. India is leading producer.0 Market Potential The demand for cashew nut is gradually increasing. the units located in cashew growing areas have added advantage of readily available backward and forward linkages. The country is hub for processing of cashew nut due to availability of skilled labour. Cashew apple pulp rich in carbohydrates is converted to beverages and famous fermented product known as Feni.4. The raw cashew can be transported to processing unit from raw material growing areas. These are consumed directly or converted to variety of products like salted cashew nuts. certain Farsan items. but due to its high price it is beyond the reach of low rung population. a location should be decided strategically keeping in view availability of ready market and cheap labour. However. CNSL has multiple uses in paint industry. 5. both of them need processing before consumption. whereas its supply is limited. dessert preparations and ice-creams. Raw cashews are processed to cashew nuts. The demand for cashew nut outstrips production.1 Domestic Market Cashew nut cultivation is limited to coastal areas. The market potential of cashew kernel is described as under: 5. cashew curries etc. Africa etc. The raw cashew is imported from Vietnam. Janmastami etc. Most of existing units import raw cashew from other countries like Vietnam. consumer and exporter of cashew nuts in the world. India exported 1. It is consumed by almost every household.2 Export Market India accounts for 65 per cent of total cashew nut exports in the world and export cashew to more than 60 countries. But there is very high demand for cashew nut and its products from all parts of the country. About two third of cashew produced in the country is consumed locally. Kaju Burfi.3. It is one of the important agricultural commodities exported from India to many countries in the world. Therefore. India produces about 7-8 lakh MT of cashew nut per annum. processor.

countries from here. The cashew kernels Grading and Packing obtained are dried in a cabinet dryer. whereas 50 per Process flow of Cashew Processing cent account for shell and remaining 20 per cent is process loss. The cashew shell is used to extract cashew nut shell liquid (CNSL). is removed to Cashew nut obtain cashew nut after drying.org/ . Raw cashew nut Sun Drying are dried in sun and stored in gunny bags. Cashewnut is graded on the basis of the colour and on how the kernel is broken. The Cashew Export Promotion Council of India (CEPCI) works towards the promotion of cashew nut and cashew nut shell liquid (CSLN). 3 . It CNSL Cashew cake becomes easy to remove nut inside cashew seed after boiling. The grading of cashew as per Agmark standards is available at http://agmarknet. Therefore.nic. Actual recovery of cashew nut is around 30 per cent. The Drying of Kernel in Oven shell of steamed cashew nut is removed by skilled labour by using cashew cutting hand Cooling of Kernels operated equipments. which is an Peeling of Kernels Testa important by-product of cashew industry.0 Manufacturing Process The process of manufacture is well-established.pdf. there is huge potential for export of this commodity. The outer reddish skin known as testa. The boiling helps Cashew Shell Cutting and Separation in softening of cashew shell.cashewindia. The guidelines for becoming member of CEPCI are available at http://www. Raw Cashew 6.in/cashewkernelsgmr. There are manufacturers of small scale Cooling boilers available for boiling of cashew nut in most of the cashew processing areas. The stored raw cashews are boiled by using steam Steam Boiling in a boiler.

FSSAI Act is applicable pan India for all food products. building.30 3. plant and machinery and civil works.in/UserLogin/Login.0 Raw and Packing Materials The proposed cashew processing unit will have installed capacity for processing of 500 MT raw cashews per year for 200 days operation.fssai. Lakh) 3. Reportedly.00 60.30 50.91 .aspx?ReqID=99887766 8.00 0.54 39.1. 1 2 3 4 5 6 7 8 4 Particulars Land Land development Sub Total Building and civil structures (sq mt) Plant and machinery Miscellaneous fixed assets Preliminary & Pre-operative expenses Margin money for working capital Contingencies @5% Total project cost Margin Money (25%) Bank loan (75%) Amount (Rs. The details of project cost are given in Table 1 and the individual components are discussed in this section.14 1.7. Hence.158.23 lakh Ha acres of land is under cashew cultivation in India. It prescribes minimum standards operating procedures.09 5.64 118. No.gov. A project cost of Rs. around 9.0 Quality Control and Quality Assurance The processing units should follow the Food Safety and Standard Authority of India (FSSAI) act 2006. Packing materials like polythene bags and second-hand corrugated boxes shall be available locally.00 2.54 Lakh has been estimated. The new units need to take a license called FSSAI number from Food Safety and Standards Authority of India. food safety norms. Table . The licensing procedure is given at FSSAI website link http://foodlicensing. The only raw material required will be cashew fruits.0 Project Cost The major component of a cashew processing unit is land. packaging & labelling norms.50 36.51 158. obtaining around 500 tonnes of cashew fruits per season even at 100% capacity utilization will not pose any problem. 9. Project cost of small scale cashew processing unit Sr.

shall be obtained for the land. A built-up area of 250 sqm is considered adequate for a cashew processing unit of small scale. The cost of land up to a maximum of 10 per cent of project cost can be reckoned towards margin. 5 . The land can also be taken on lease and the lease period should be sufficiently more than the repayment period of loan. Glazed tiled flooring shall be preferable to ensure easy cleaning of floor after processing session. Main processing area would require about 55-60 sqm. Permission for non-agriculture use. The land should be classified as non-agriculture. All windows and doors should be provided with insect proof wire mess.3 Plant and Machinery Cashew processing is a seasonal activity and the factory would work for about 200 days in a year. if purchased by the promoters for the project.15 lakh. 9. whereas storage and packing rooms would occupy balance area. 0. The site should be leveled and with open space for sun drying of raw cashew. 9. Land cost of Rs. The land should be free from any encumbrance and shall be mortgageable. Land development cost of Rs. The land cost varies considerably from place to place.30 Lakh has been considered in the model.9.00 lakh. processing capacity of 500 tonnes of raw cashew processing per season is suggested.1 Land and Land Development A plot of land admeasuring 500 sqm will be sufficient for small scale cashew processing unit.0 lakh has been considered for this model.2 Buildings and Civil Works The cashew processing unit requires a processing. The terrace of the unit can be used as drying yard for raw cashew. The details of plant and machinery and other equipments are given in Table 2. Slope as per standard guidelines should be provided in floor.60. The total cost of building is estimated at Rs. The estimated cost of plant and machinery is Rs. The lease land should preferably be with an enabling clause for mortgage of land to banks or financial institutions. and packing area.3. The height of the building should be such that sufficient breathing space is available. The buildings for processing of cashew should be constructed as per the guidelines of FSSAI. drying. Similarly cost of land development also varies from place to place and should be considered on actual basis. Keeping in mind the availability of raw materials and market prospects. wherever applicable. The promoters can acquire more land keeping in view future expansion plans.50.

1 2 3 Particulars Steam Boiler Cooking Vessels Semi Automated Peeling Machine Multi-color Cashew Kernel Sorting Machine Husk Winnowing Machine Steam Pipeline Hot Oven Hand Operated Cutting Machine 4 5 6 7 8 9 10 11 12 13 14 Cashew Peeling Machine Filling Machine Pieces separator Weighing Machine Sealing machine Food grade plastic tubs. bowls Diesel Generator Set Grand total 15 Number Rate 1 2 1 758000 36000 834000 Amount (Rupees) 758000.00 250000. working tables etc. The estimated working capital requirement is given in Table 3. SS utensils.2. cashew basket. 3rd and 4th year onwards has been considered in the model.00 7 1 1 3 1 LS 214286 105500 90000 13500 3500 1500000.00 1 562609 562609. The plant is expected to start its operation during 2nd year at capacity utilization of 70%.00 40500. 80% and 90% during 2nd. below: 6 .00 834000.0/.00 3500.00 9.00 610000. crates. 10.0 Working Capital Requirement Time period for construction has been considered one year including preliminary work like feasibility study.lakh is made.00 335000.00 90000.00 1 729300 729300. 1.00 6014409. Plant & machinery and other equipments required by cashew processing units S.00 105500. storage racks. DPR preparation and financial closure. buckets.Table.4 Miscellaneous Assets Some other assets like furniture & fixtures.00 1 1 1 10 105000 610000 335000 1900 105000.00 72000.No.00 19000. shall be required for which a provision of Rs.

Working capital assessment of cashew processing unit (Amount in Rs.08 61.57 144. 8 Bank loan 25% 11.1 Margin Money The promoters of the units need to bring margin as per the requirement of financing banks and also as per RBI guideline issued from time to time.79 4 Debtors 7 14. Important terms and conditions of financing such units are discussed in this section. 11.54 Total current assets 6 Creditors (current liabilities) 0 Working capital gap 7 Margin money for W. Such units can be financed by any scheduled commercial banks.72 36.00 144.18 108. Lakh) S.80 1 Raw materials stock 2 Work in progress 7 14.28 3 Finished goods 30 61.57 0.27 16. 7 .17 69.72 0. Regional Rural Banks and Cooperative Banks. We have assumed margin money of 25 per cent in this model scheme.27 16.0 Means of Finance Financing to food processing falls under priority sector lending.28 5 Working expenses 30 0.37 164.28 123.Table.37 164. The loans to units meeting the criteria of MSME are classified under MSME sector. The margin money varies from minimum 10 per cent to 25 per cent of project cost.09 41.No. Particulars Period (days) 30 Yr2 Yr3 54.C.3.00 0.

we have considered an interest rate of 12 per cent for term loan and 12. the banks are required to take adequate security for loans extended by them. Base rate of a bank is a minimum lending rate below which bank is not allowed to lend. The entrepreneurs may contact State Nodal Agencies in respective states to avail this scheme.mofpi. Some of the states have formulated Agro Industry Policy.aspx?OPsNrN8PJA9sTrxLD7BvfB2hBlJg+pf ldJPrxZAjVpDNZljdsLVU2Gbcbo6343MQnfLHw3hYt7Q=.5 Security As per RBI guidelines. It generally varies from customer to customer based on credit appraisal of borrower. The scheme will be operational during 12th Five Year Plan.5 per cent for working capital to assess the bankability of the model project.aspx?KYEwmOL+HGqHeLlRhVlZUABVfKtILFmuP NWgdG0C70PqfSu+Dkvx1A==. Various incentives are available from District Industry Centres (DIC) depending upon location of unit. Subsidy is available under this scheme for various food processing industries. 11. the promoters should be careful in deciding means of finance.4 Interest Rate The banks are free to charge any rate of interest above its base rate within overall RBI guideline issued from time to time. Therefore. The borrowers should plan projects in such a manner that they have 8 . 11. 11. However. GoI is implementing a centrally sponsored scheme known as National Mission on Food Processing (NMFP) jointly with State Governments. The details of the scheme are available at http://www.in/SchemeViewPage. The new comers should go through these guidelines. The details of the State Nodal Officers is given at link http://www.3 Grant & Subsidy There are numbers of incentives from Sate Government for promotion of food industry. to take maximum advantage of these incentives. entrepreneurs may contact the DIC in respective states. Therefore.nic.in/H_Dwld.mofpi.nic. It is compulsory to take bank loan to avail various subsidy schemes of government. Ministry of Food Processing Industry.2 Bank Loan The promoters of the units can approach any financing bank for finance.11.

11. The wages are paid on per Kg basis. No. The cashew cutting and peeling is a skilled job. The labour is required for each and every operation like loading and unloading of raw materials and finished products. The detail of manpower requirement is given in Table.enough fixed assets to offer as security against bank loan.4. drying of raw materials. 11.5. especially buildings and plant and machinery is not enough to cover the bank loan.4. The higher the value of collateral softer will be the terms for financing.5. Various types of securities considered by banks are given here: 11. The mortgage can be registered or equitable in nature. processing and packing of cashew kernel. Table. 1 2 3 9 Post Manager cum supervisor Skilled labour Helper Total Number Salary/ Annual wages 1 25000 300000 2 15000 180000 1 8000 96000 4 576000 . The value of all these assets is known as primary security for a bank.3 Hypothecation of Stocks All stocks. This is known as collateral security. inventories and debtors are hypothecated to financing banks as security against the bank loan extended by them. machinery and other miscellaneous fixed assets acquired by bank loan shall have to be hypothecated to bank. The processing units also need to employ permanent labour for handling various day to day operations.0 Manpower Requirement The cashew processing industry is highly labour intensive. Therefore. The plant. the banks insists for mortgage of any other property or asset of the company or promoters. 12.5.2 Collateral Security As the value of primary assets. entrepreneurs may offer reasonable amount of collateral security to reduce interest cost. Most of these cashew processing activities are performed by female skilled labour on contract basis. Manpower requirement of cashew processing unit S.1 Primary Security The land and buildings acquired by bank loan are mortgaged to financing banks.

Permission to commence production from State Pollution Control Board iii.5 0. keeping in view preliminary activities and processes involved in project approvals etc.5.5. The estimated time period required for each activity is given in Table. Registration with District Industry Centre (DIC) for as Small and Medium Enterprise vii.mandatory iv. . Registration of concern with Registrar of Companies (ROC) ii.0 Activity Feasibility Study DPR preparation Preliminary activities Construction period (Civil work and placement of orders for plant and machinery Installation of plant and machinery and trial run Period (months) 0. No. Implementation schedule for cashew processing unit.1 Prior to establishment i. Consent to establish from State Pollution Control Board . NOC from Local Bodies like Gram Sabha/ MC etc.2 After establishment i.mandatory iii. A cashew processing unit is simple to construct.mandatory v. Table.13. Application to State Electricity Board/ Authority for sanction of requisite power load 14.0 Implementation Schedule The time for implementation of project is an important factor to decide the viability of a project. License from boiler inspector 10 . However. S. Approvals/ Clearance Required 14. an implementation period of 1 year has been considered.5 1 8 2 Govt. Approval of Layout plan for construction . 1 2 3 4 5 14. Permission to dug bore well from Ground Water Survey and Development Authority (GSDA) vi. License from FSSAI ii.

6. The entrepreneurs should undertake an exhaustive study of all rules and regulations prior to establishment of any such unit. The debt service coverage ratio based on assumed techno economic parameters is found satisfactory. The new entrepreneurs may take help of suitable consultant to avoid unnecessary expenditure for compliance later on. Benefit Cost Ratio (BCR).6.0 Financial Analysis In order to test the financial soundness of business.057 Should be >1.18 Should be +ve IRR 34.2 Repayment Period and Debt Service Coverage Ratio (DSCR) The repayment period has been drawn by considering net surplus available for repayment. analyzed by discounting cash flow @15% discounting rate are given in Annexure III and summary is presented in Table. key financial indicators are assessed. The details are presented in Annexure IV. Estimated Financial Indicators Financial Indicators NPW @ 15 % DF` Estimated Requirement 124. Table. The assumptions made might vary from place to place. 11 .0 DSCR 1.1 Financial Indicators Based on the assumptions on input and output parameters. Internal Rate of Return (IRR) etc.27% > 15% BCR 1. 15. hence need to be considered on case-by-case basis. 15. The bank loan with interest is repayable within 10 years with a grace period of one year. Based on historical data on cost and prices. The financial indicators like Net Present Worth (NPW). The key techno-economic assumptions are presented in Annexure I. techno-economic assumptions are made for preparation of this model.5 15.604 Should be >1. an Income Expenditure statement (Cash Flow Statement) prepared is presented at Annexure II.The list is only illustrative.

These methods are used invariably to submit the returns to Registrar of Companies & Income Tax Authorities.16. The actual cost and returns of projects will have to be taken on a case by case basis considering the specific requirement of projects 12 . We have followed WDV method for computation of depreciation in the present model and the schedule of depreciation is presented in Annexure V.0 Depreciation Schedule There are two different methods for assessment of depreciation on fixed assets namely Written Down Value Method (WDV) and Straight Line Method (SLM). DISCLAIMER The views expressed in this model project are advisory in Nature. NABARD assume no financial liability to anyone using the report for any purpose.

5.Kg for cutting.5% of the depreciated cost of the assets. Sales price will be Rs. Capacity utilization: 1st year – Construction period. Total Installed Capacity 500 MT per annum of raw cashew. 10.425/Kg for splits 6.5% per annum and interest on term loan considered at 12% per annum. Repayment period of ten years with one year grace period has been considered. 11. Insurance charges for the fixed assets considered as 0. Interest on working capital considered at 12. respectively. 4. peeling and grading.103 / Kg 7. 2. Recovery of final products considered was 24% of raw cashew. The unit will operate in a single shift of 8 hours for 200 days. 9. Cost of raw cashew including transportation Rs.160/. Margin money considered at 25% of the financial outlay. 12. Labour charges are considered as Rs. 2nd year – 70%. 8. 3rd Year 80% and 4th year onwards – 90%. 13 .Annexure I Techno Economic Parameters Assumptions for working out economics of a 500 MT/ Annum capacity raw cashew processing plant 1. Depreciation rate of 5% and 10% has been considered for civil structures and plant & machineries.550/Kg for whole cashew and Rs. 3.

40 86.20 Yr 8 475.60 21.50 589.60 21.00 17.80 Cashew shells 0.50 589.50 22.60 21.40 86.40 86.40 81.Lakh) 0.00 589.80 91.80 91.00 71.80 91.00 Yr 2 369.00 22.20 Yr10 475.50 22.Annexure II Profitability Statement i.50 524.50 22.50 589. Installed Capacity & Capacity utilization Installed Capacity Installed capacity .60 21.20 Yr 6 475.000 458.80 91.20 76.50 22.20 Splits 0.50 Income per annum (Rs.60 Yr 3 422.20 Yr 5 475.80 91.40 86.20 Yr 7 475.80 19.60 21.40 86.50 20.50 589.Raw cashew (tonnes) Installed capacity cashewnut (tonnes) Capacity utilization (%) Actual production (MT) Whole cashew (MT) Splits (MT) Yr 1 Yr 2 500 ii.50 22.40 Yr 4 475.60 21.20 21.60 91.50 22.40 0 16.80 91.20 Yr9 475.40 86.50 589.80 86.60 Sales Revenue (Rupees in Lakh) Products Yr 1 Whole cashew 0. Yr 3 500 500 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 500 500 500 500 500 Yr9 500 Yr10 500 120 120 120 120 120 120 120 120 120 120 0% 70% 80% 90% 90% 90% 90% 90% 90% 90% 0 84 96 108 108 108 108 108 108 108 0 67.50 589.50 14 .

742 15 .00 22.60 3.25 29.36 3.43 0.911 8.78 3.443 15.63 523.72 9.72 9.00 5.50 Yr 8 463.46 0.847 Yr 8 65.183 4.50 Yr 3 412.173 13.78 0.126 26.34 0.48 6.476 12.55 0.098 9.48 6.668 Yr 4 65.72 9.55 0.27 0.72 0.10 0.10 0.25 29.33 523.76 5.919 28.50 Yr 7 463.10 6.906 Interest on Term Loan Interest on WC 14.55 0.443 Total interest 14.59 0.76 5.50 Yr 6 463.59 0.50 Yr10 463.443 15.891 Yr10 65.034 4. Lakh) Particulars Raw materials Yr 1 0.61 523.60 3.956 23.76 5.72 9.59 Financials Particulars Gross Surplus ( PBDIT ) Depreciation Yr 1 -6.72 9.72 9.00 2.00 0.683 11.25 29.59 0.56 8.269 13.927 6.65 523.80 3.982 5.76 5.68 523.764 Yr 5 65. 0.626 19.25 29.541 24.568 Yr 3 57.10 0.281 2.55 0.443 15.248 3.534 15.870 Yr9 65.25 Peeling expenses 0.60 3.60 3.00 29.76 5.370 21. Expenditure Calculation (Rs.623 4.59 0.76 6.10 0.48 6.59 0.442 27.59 5.48 6.486 5.59 0.48 6.37 0.76 5.822 Yr 7 65.55 0.60 0.60 3.55 0.iii.78 3.64 9.10 0.528 5.20 3.10 0.32 0.76 5.299 0.10 0.78 3.94 3.50 Yr 5 463.794 Yr 6 65.53 0.74 523.55 0.48 Grading expenses Packing and marketing cost Fuel consumption Power consumption Staff salary 0.443 15.47 0.30 0.55 0.00 Yr 2 360.76 Repair and maintenance (building and P&M) Insurance of buildings and civil works Misc Expenses 0.40 0.724 17.10 0.48 6.71 523.00 2.128 6.51 0.919 Yr 2 49.25 29.78 3.514 7.10 0.75 26.04 5.443 15.78 3.93 466.00 Yr 4 463.443 15.55 0.50 Cutting expenses 0.788 7.78 3.25 Total Expenditure iv.60 3.76 5.25 29.92 408.269 14.55 0.803 28.50 Yr9 463.513 7.443 15.76 5.00 7.

895 24.920 Yr10 44.328 -7.092 31.621 Yr 4 31.875 Yr 2 13.783 11.263 0.460 22.200 11.000 1.875 8.604 16 .269 20.963 25.443 Yr 8 39.642 36.643 23.621 Yr9 41.357 34.000 DSCR -0.310 22.644 1.163 35.977 Yr 3 21.Particulars Profit after Depreciation and Interest Tax Yr 1 -29.002 34.092 31.642 36.037 20.641 1.374 37.110 Yr 5 33.082 25.533 14.700 1.925 36.163 35.032 7.479 14.380 Yr 7 37.829 28.264 15.122 38.945 13.293 22.511 1.533 -7.725 22.000 1.000 1.656 1.357 34.485 1.000 5.925 36.000 1.910 21.796 21.935 Profit after Depreciation.837 19.978 12.002 34.122 38.456 Value 1.000 1.000 1.579 1.441 39.441 39.715 1.609 Average DSCR 1.000 1. Interest and Tax Surplus available for Repayment DSCR Coverage Available Debt -29.374 37.358 26.875 20.000 1.271 Yr 6 35.737 13.091 15.000 1.497 1.

00 0.68 523.82 65.33 523.00 589.61 523.50 640.Annexure III Calculation of IRR.00 0.50 589.50 589.46 49.24 2316. No.50 589.59 165.00 50.54 0.50 589.57 57.18 34% 1.46 408.74 523.63 523.93 466.91 0.50 1 Capital Cost 2 Recurring Cost 3 Total Cost 4 Benefits 5 Depreciated value of structures 6 Total Benefits 7 Net Benefits 8 Discounting Factor 9 NPW @ 15 % DF 10 IRR 11 BCR 17 Yr9 0.50 589.00 589.33 523.89 116.59 0.00 458. Particulars Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 158.As per IT Act (Rupees in Lakh) S.42 .65 523.85 65.68 523.00 0.50 589.74 523.92 408.67 65.71 523.41 -165.50 524.50 589.00 0.50 589.06 2192.00 0.50 524.61 523.00 6.82 15% 124.65 523.63 523.00 458.79 65.87 65.00 Yr10 0.00 0. BCR and NPW .76 65.50 589.50 589.93 466.50 589.71 523.

46 51.70 39.70 14.91 31.12 12.36 4 105.16 6.48 6.28 16.30 19.92 7 66.91 -7.48 13.06 36.31 79.06 6 79.61 20.61 20.21 25.27 6.70 105.91 118.67 35.30 112.13 3 112.53 22.93 14.16 14.85 22.16 21.53 51.53 36.13 9 35.21 22.21 24.72 66.10 13.Annexure IV Repayment Schedule Surplus for Repayment Interest Payment Repayment of Principal Total Outgo O/S Bank Loan at End of Year Balance left 0 Total loan outstanding O/S Bank Loan at Start of Year 1 Disb.91 2 118.67 14.51 13.09 14.16 34.27 0.80 19.00 14.04 35.30 10.08 105.92 7.08 18 .56 10 19. During the year Year (Rupees in Lakh) 118.36 4.67 35.68 13.87 112.06 66.48 92.23 5 92.53 2.27 118.46 0.64 9.48 38.37 11.18 15.36 118.44 13.46 8 51.00 14.27 79.30 34.27 37.16 19.51 20.06 14.00 13.91 -21.27 14.53 14.90 92.

06 54.13 48.72 43.46 35.06 54.13 42.20 2.79 7.46 35.19 74.97 1 All assets 110.66 1. No.Annexure V Depreciation as Per the WDV Method: IT Act (Rupees in lakh) Sr.87 4.92 33.33 3 Depreciated cost 54.03 4.85 39.30 6.50 2.51 31.72 43.38 2.75 34.49 5.91 2 19 .77 25.14 2.38 3.20 68.63 93.89 23.13 42.17 31.50 45.93 1.30 20.20 68.04 1.81 2 Depreciation 8.41 4.98 5.13 48.73 38.84 1.25 3.77 25.87 40.19 74.26 2.92 33.13 6.94 3 Depreciated cost 1 Plant & Machinery Depreciation 60.68 59.62 4.87 40.88 2.51 31.81 50. 1 2 Particulars Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Civil Structures Depreciation 50.69 36.91 3 Depreciated cost 101.71 80.96 28.85 39.96 28.53 5.84 86.51 7.72 63.14 54.95 3.71 80.51 29.63 93.14 101.58 47.51 2.75 1.55 3.01 5.17 31.00 47.50 45.72 63.89 23.68 59.75 34.73 38.69 36.59 2.84 86.