PROJECT REPORT

ON
WHEAT FLOUR MILL
Proprietor: Mrs Madhu Kesarwani
Factory At: Gram- Kesarwani Kala, Post- Sahson,
Prayagraj

COMPILED BY-

CA SHIVAM AGARWAL
(M/s Shivam Agarwal & Associates)
CHARTERED ACCOUNTANT
Address: 6/11 Lakhpat Rai Lane,Bahadurganj,
Prayagraj-211003

MOBILE NO.9532979897,9236135701

Email Id: cashivam1@gmail.com

 KEY HIGHLIGHTS OF THE PROJECT

1 Name of Proprietor :- Mrs. Madhu Kesarwani

2 Address Gram- Kesarwani Kala, Post Sahson,

:- Prayagraj

3 Nature of Business :- Flour/ Atta Mill

4 Constitution :- Individual

5 No. of Working Days :- 350 Days

6 Purpose of Finance :- For Setting up the Unit

7 Total Cost of Project :- (Rs.In lakhs) 25.00

8 Facility Required
Term Loan :- (Rs.In lakhs) 14.25
C/C Limit Proposed (Rs.In lakhs) 9.50
Rate of Interest (Per Annum) 12%
Loan Term/Repayment Period 5 Years

9 Debt Service Coverage Ratio :- Year I Year II Year III Year IV Year V

2.10 2.40 2.78 3.22 3.73

Average DSCR 2.85

Prepared and compiled on the basis of information and explanation as provided by the Individual.

FOR SHIVAM AGARWAL & ASSOCIATES

CHARTERED ACCOUNTANTS

Mrs. Madhu Kesarwani CA. SHIVAM AGARWAL

PROPRIETOR, M.NO. 419196

Date: 16.07.2020
Place : Prayagraj
 `

WHOLE WHEAT FLOUR (ATTA MILL)

1. INTRODUCTION:

Wheat flour, also known as Atta in Hindi, is widely used product on daily basis in every
household. For making chapattis, bread, roti, naan, puri Wheat Flour is basic and essential
raw material. Most atta is milled from the semi-hard wheat varieties, also known as durum
wheat that comprises 90% of the Indian wheat crop, and is more precisely called Durum
Atta.

2. PRODUCT & ITS APPLICATION:

Wheat Flour or Atta is the predominantly used in food items in India, such as chapatti, roti,
naan and puri and in sweat items too like halwa, pakoda, etc. This is basic and most
essential product for daily consumption in every home in India.

3. INDUSTRY LOOKOUT AND TRENDS

Wheat is the most widely produced cereal all over the world, used for human consumption;
Contribution of wheat to energy intake is significant. Global wheat flour market is majorly
driven by rising consumption of bakery products fueled by combined influence of growing
population, change in tastes of consumer and rise in disposable income of consumers
worldwide.

In last few years, there has been a rising demand for wheat flour due to changing trend in
food industry with innovations in food products and recipes coupled with changing taste of
consumers. Companies are launching new products, investing in expansion, and forming
strategic alliances to increase their market share. The major players in the wheat flour
 `

market include Archer Daniels Midland Company (U.S.), Cargill Inc (U.S.), General Mills
(U.S.), Ardent Mills Corporate (U.S.) and ITC Limited (India).

4. MARKET POTENTIAL AND MARKETING ISSUES, IF ANY:

Whole wheat flour is used in making Chapaties, Puries, Parotha and other roasted cereal
based products. Sooji / Rava is used in many sweetmeat products. Wheat flour or Maida is a
basic raw material for making Bread, Biscuits Cakes and other bakery products. Bran
separated on milling is used as cattle feed. The products sold under brand names are very
few. The concept for branded cereal flour products is now increasing.

5. RAW MATERIAL REQUIREMENTS:

Basic raw materials required are Wheat Blended of different types. For packing, gunny bags
will be required.

6. ABOUT THE PROPRIETOR

The promoter envisages set up of Wheat Flour Mill at Gram- Kesarwani Kala, Post Sahson,
Prayagraj.
The Proprietor Mrs Madhu Kesarwani is a women entrepreneur. She has an experience of
about 10 year in the food industry sector. She is hardworking person & is good learner. She
has the ability & zeal to excel & take business into new heights

7. ABOUT PROGESS/PROJECT IMPLEMENTATION

Intial steps towards implementation of the project have already been taken like
selection of the site ,market survey, supply selection and finalisation of plant &
machinery etc. It is expected that unit may start production on commercial basis with
a very short span of time from receiving necessary regulatory clearances
 `

8. MANUFACTURING PROCESS:
Firstly, wheat is thoroughly cleaned such that all dust particles, stones and other foreign
matters will be removed. Clean wheat will be tempered before grinding by treating with
water so that the bran is separated from the endosperm. The tempered wheat is crushed
between corrugated rollers (Break rolls). The first break rolls are set relatively far apart to
grind the wheat lightly, while successive break yield finer and finer products. The first break
is separated by sieving or bolting in to very fine particles (flour), intermediate particles
(middling) and coarse particles (stock). The stock is then sent to second break rolls. This
process may continue through 5 to 6 breaks. The stock contains pieces of endosperm and
bran and the stock from the last break is principally bran. The middling contains endosperm,
bran and germ which are then successively classified and some of the bran removed is sent
to reduction rollers. These are smooth rollers, but like the break rolls they are graduated so
that successive reduction becomes finer and finer. After each reduction, sifters separate the
flour, middling and stock, this process is continued until most of the endosperm has been
removed as flour and most of the bran has been separated in the sifters.
 `

BASIC AND PRESUMPTION OF THE PROJECT

1. This Report has been compiled on the basis of records, estimates, information &
explanations provided to us by the proprietor
2. The Process of manufacture is on the basis of single shift of 10 hours per day
3. Labour & wages mentioned in the profile are as per the prevailing market rate
4. Interest on term loan has been assumed to be 12% & for CC Interest has been
taken as 12%
5. Loan will be repaid in 5 year
6. Average price of Raw material as per the current prevailing market rate has
been taken into account while calculating price of raw material
7. Depreciation has been charged as per Income Tax Act 1961
8. The proprietor is well experienced & will get the business.
9. Considering the Inflation,growth rate in the market price of sale as well
expenses is considered @ 15% as compared to previous year
10. Administrative Expenses will be increased @ 10% per Annum
SOURCES AND APPLICATION OF FUNDS
[Rs. in Lacs]
APPLICATION OF FUND
S.N. Particulars Total

Cost of the Project

1 Plant & Machinery
Plant & Machinery (Refer Quotation) 11.41
Jute & Plastic bags 2.51
Weighing Instruments 0.26
Desktop Computer 0.49
Furniture/Fixture 0.83
Sub- Total 15.50 15.50

3 Working Capital 9.50

25.00

SOURCES OF FUND

1 Capital [=> 25%] 1.25

2 Loan From Financial Institution
Term Loan 14.25
Cash Credit Limit 9.50 23.75

Total 25.00

BASIS ASSUMPTION
1 Gross Receipt will be increased @ 15% per annum
2 Depreciation has been charged on Fixed Assets on WDV Basis @ 15% P.A.
3 Administrative Expenses will be increased @ 10% per Annum

Prepared and compiled on the basis of information and explanation as provided by the Individual.

FOR SHIVAM AGARWAL & ASSOCIATES

CHARTERED ACCOUNTANTS

Mrs. Madhu Kesarwani CA. SHIVAM AGARWAL

PROPRIETOR, M.NO. 419196

Date: 16.07.2020
Place : Prayagraj
INTEREST ON TERM LOAN
Particulars Year I Year II Year III Year IV Year V
On Term Loan 12% 1.59 1.31 0.99 0.64 0.24
On Cash Credit 12% 1.14 1.14 1.14 1.14 1.14
2.73 2.45 2.13 1.78 1.38

DEPRECIATION ON ASSETS
Particulars Dep.% Year I Year II Year III Year IV Year V

Plant and Machinery 15%

Opening W.D.V. 0.00 13.18 11.20 9.52 8.09
Add Addition 15.50 0.00 0.00 0.00 0.00
15.50 13.18 11.20 9.52 8.09
Depreciation 2.33 1.98 1.68 1.43 1.21
Closing W.D.V. 13.18 11.20 9.52 8.09 6.88

Prepared and compiled on the basis of information and explanation as provided by the Individual.

FOR SHIVAM AGARWAL & ASSOCIATES

CHARTERED ACCOUNTANTS

Mrs. Madhu Kesarwani CA. SHIVAM AGARWAL

PROPRIETOR, M.NO. 419196

Date: 16.07.2020
Place : Prayagraj
PROFITABILITY STATEMENT [Rs. in Lacs]

Particulars Year I Year II Year III Year IV Year V

1 Gross Revenue 60.00 69.00 79.35 91.25 104.94

Total A 60.00 69.00 79.35 91.25 104.94

EXPENSES
2 Cost of Material Consumed 45.00 51.75 59.51 68.44 78.71
3 Labour Charges 2.40 2.76 3.17 3.65 4.20
4 Electricity and Fuel Exp. 0.24 0.28 0.32 0.37 0.42
5 Telephone Exp. 0.10 0.11 0.12 0.13 0.14
6 Rent 0.72 0.79 0.87 0.96 1.05
6 Travelling & Conv.(Transport) 0.60 0.66 0.73 0.80 0.88
7 Misc Exp.
Insurance Expenses 0.05 0.20 0.22 0.24 0.26
Entertainment Expenses 0.12 0.13 0.15 0.16 0.18
Legal Exp. 0.10 0.12 0.13 0.15 0.17
Other Misc. Exp. 0.24 0.28 0.32 0.37 0.42
8 Advertisement & Marketing Exp. 0.04 0.05 0.05 0.06 0.07
9 Depreciation on Assets 2.33 1.98 1.68 1.43 1.21
10 Interest on Loan 2.73 2.45 2.13 1.78 1.38

Total B 54.66 61.54 69.40 78.52 89.09

Net Profit [ A - B ] 5.34 7.46 9.95 12.73 15.85

Add Depreication 2.33 1.98 1.68 1.43 1.21

Cash Accural 7.66 9.44 11.63 14.16 17.06

Prepared and compiled on the basis of information and explanation as provided by the Individual.

FOR SHIVAM AGARWAL & ASSOCIATES

CHARTERED ACCOUNTANTS

Mrs. Madhu Kesarwani CA. SHIVAM AGARWAL

PROPRIETOR, M.NO. 419196

Date : 07.07.2018
16.07.2020
Place : Prayagraj
CASH FLOW STATEMENT [Rs. in Lacs]

Particulars Year I Year II Year III Year IV Year V

CASH IN FLOW
Net Profit 5.34 7.46 9.95 12.73 15.85

Depreciation 2.33 1.98 1.68 1.43 1.21

Promoter Capital 1.25 0.00 0.00 0.00 0.00

Loan From Financial Institution 23.75 0.00 0.00 3.00 3.00

Total [ A ] 32.66 9.44 11.63 17.16 20.06

CASH OUT FLOW

Fixed Assets 15.50 0.00 0.00 0.00 0.00

Repayment of Loan 2.21 2.49 2.81 3.17 3.57

Increase in Debtors & Current Assets 9.50 2.85 3.42 4.10 4.92

Drawing 1.20 1.38 1.59 1.83 2.10

Total [ B ] 28.41 6.72 7.82 9.10 10.59

Cash Balance [ A - B ] 4.25 2.72 3.82 8.06 9.47

Add Opening Balance 0 4.25 6.97 10.78 18.84
Closing Cash & Bank Balance 4.25 6.97 10.78 18.84 28.32

Prepared and compiled on the basis of information and explanation as provided by the Individual.

FOR SHIVAM AGARWAL & ASSOCIATES

CHARTERED ACCOUNTANTS

Mrs. Madhu Kesarwani CA. SHIVAM AGARWAL

PROPRIETOR, M.NO. 419196

Date : 07.07.2018
16.07.2020
Place : Prayagraj
PROJECTED BALANCE SHEET [Rs. in Lacs]

Particulars Year I Year II Year III Year IV Year V

LIABILITIES
Proprietor's Capital 1.25 5.39 11.41 19.64 30.29
Add Net Profit 5.34 7.46 9.95 12.73 15.85
6.59 12.85 21.36 32.37 46.14
Less Drawing 1.20 1.44 1.73 2.07 2.49
5.39 11.41 19.64 30.29 43.66

Bank Term Loan 12.04 9.48 6.73 3.57 0.00

Cash Credit Limit 9.50 9.50 9.50 12.50 15.50
PMEGP Subsidy KVIB 8.75 8.75 8.75

Total 35.68 39.14 44.62 46.36 59.16

ASSETS
Fixed Assets 13.18 11.20 9.52 8.09 6.88
FDR - Subsidy 8.75 8.75 8.75
Sundry Debtors & Stock 9.50 12.23 15.57 19.42 23.96
Cash & Bank Bal. 4.25 6.97 10.78 18.84 28.32

Total 35.68 39.14 44.62 46.36 59.15

- - -- - -

Debt Service Coverage Ratio : Net Profit After Tax + Interest on Term Loan + Depreciation
Repayment of Term Loan (Interest + Principal)

Year I Year II Year III Year IV Year V

Debt Service Coverage Ratio : 2.10 2.40 2.78 3.22 3.73

Prepared and compiled on the basis of information and explanation as provided by the Individual.

FOR SHIVAM AGARWAL & ASSOCIATES

CHARTERED ACCOUNTANTS

Mrs. Madhu Kesarwani CA. SHIVAM AGARWAL

PROPRIETOR, M.NO. 419196

Date : 07.07.2018
16.07.2020
Place : Prayagraj
CALCULATION OF INTEREST AND INSTALLMENT ON TERM LOAN (Rs. In Lakhs)

S.N. Opening Bal. Installment Principal Interest Closing Bal.

12%
1 14.25 0.32 0.17 0.14 14.08
2 14.08 0.32 0.18 0.14 13.90
3 13.90 0.32 0.18 0.14 13.72
4 13.72 0.32 0.18 0.14 13.54
5 13.54 0.32 0.18 0.14 13.36
6 13.36 0.32 0.18 0.13 13.18
7 13.18 0.32 0.19 0.13 12.99
8 12.99 0.32 0.19 0.13 12.80
9 12.80 0.32 0.19 0.13 12.62
10 12.62 0.32 0.19 0.13 12.42
11 12.42 0.32 0.19 0.12 12.23
12 12.23 0.32 3.80 0.19 2.21 0.12 1.59 12.04
13 12.04 0.32 0.20 0.12 11.84
14 11.84 0.32 0.20 0.12 11.64
15 11.64 0.32 0.20 0.12 11.44
16 11.44 0.32 0.20 0.11 11.24
17 11.24 0.32 0.20 0.11 11.03
18 11.03 0.32 0.21 0.11 10.83
19 10.83 0.32 0.21 0.11 10.62
20 10.62 0.32 0.21 0.11 10.41
21 10.41 0.32 0.21 0.10 10.19
22 10.19 0.32 0.22 0.10 9.98
23 9.98 0.32 0.22 0.10 9.76
24 9.76 0.32 3.80 0.22 2.49 0.10 1.31 9.54
25 9.54 0.32 0.22 0.10 9.32
26 9.32 0.32 0.22 0.09 9.10
27 9.10 0.32 0.23 0.09 8.87
28 8.87 0.32 0.23 0.09 8.64
29 8.64 0.32 0.23 0.09 8.41
30 8.41 0.32 0.23 0.08 8.18
31 8.18 0.32 0.24 0.08 7.94
32 7.94 0.32 0.24 0.08 7.71
33 7.71 0.32 0.24 0.08 7.47
34 7.47 0.32 0.24 0.07 7.23
35 7.23 0.32 0.24 0.07 6.98
36 6.98 0.32 3.80 0.25 2.81 0.07 0.99 6.73
37 6.73 0.32 0.25 0.07 6.48
38 6.48 0.32 0.25 0.06 6.23
39 6.23 0.32 0.25 0.06 5.98
40 5.98 0.32 0.26 0.06 5.72
41 5.72 0.32 0.26 0.06 5.46
42 5.46 0.32 0.26 0.05 5.20
43 5.20 0.32 0.27 0.05 4.93
44 4.93 0.32 0.27 0.05 4.66
45 4.66 0.32 0.27 0.05 4.39
46 4.39 0.32 0.27 0.04 4.12
47 4.12 0.32 0.28 0.04 3.85
48 3.85 0.32 3.80 0.28 3.17 0.04 0.64 3.57
49 3.57 0.32 0.28 0.04 3.29
 50 3.29 0.32 0.28 0.03 3.00
51 3.00 0.32 0.29 0.03 2.71
52 2.71 0.32 0.29 0.03 2.42
53 2.42 0.32 0.29 0.02 2.13
54 2.13 0.32 0.30 0.02 1.84
55 1.84 0.32 0.30 0.02 1.54
56 1.54 0.32 0.30 0.02 1.24
57 1.24 0.32 0.30 0.01 0.93
58 0.93 0.32 0.31 0.01 0.62
59 0.62 0.32 0.31 0.01 0.31
60 0.31 0.32 3.80 0.31 3.57 0.00 0.24 0.00

Prepared and compiled on the basis of information and explanation as provided by the Individual.

FOR SHIVAM AGARWAL & ASSOCIATES

CHARTERED ACCOUNTANTS

Mrs. Madhu Kesarwani CA. SHIVAM AGARWAL

PROPRIETOR, M.NO. 419196

Date : 07.07.2018
16.07.2020
Place : Prayagraj