TEV STUDY

Name of the Firm M/s Jai Kissan Foods

Type of Constitution Partnership Firm
Promoters 1. Mr. Sanjay Kumar

2. Mrs. Kavita Devi

3. Mr. Ajay Kumar

4. Mr. Arjun Kumar

5. Mr. Atul Kumar

6. Mr. Honey Arora

Administrative. Office Village - Nijhra, Kashipur, US Nagar, Uttarakhand

Factory Village - Nijhra, Kashipur, US Nagar, Uttarakhand
Nature of Industry Food Processing Industry
PAN NO. Applied For
GST NO. Will be Applied
Installed Capacity IQF-5MT/Hr
Activity Frozen Peas & Other Vegetables

Cost of Project Particulars Rs. In lacs

Land & Site Development Already Owned

Civil Construction 454.93

Plant & Machinery 1552.80

MMWC 206.89

Misc. Fixed Assets 18.20

Securities 8.23

Contingency/ Pre-operative 60.00

Expenses

Total 2301.04

Means of Finance Particulars Rs. in lac

Promoters' Capital 551.04
Term Loan 750.00
 Grant in Aid 1000.00
Total 2301.04

1. Introduction

Food processing industry is of enormous significance for India's development because of the vital linkages
and synergies it promotes between the two pillars of our economy, industry and agriculture. Fast growth in
the food processing sector and simultaneous improvement in the development of value chain are also of
great importance to achieve favorable terms of trade for Indian agriculture both in the domestic and the
international markets. The sector however has to go a long way. Even important is the crucial contribution
that an efficient food processing industry could make in the nation's food security for instance the post-
harvest losses of selected Fruits and Vegetables are about 25% to 30% in our country. Even marginal
reductions in these losses are bound to give us better returns and thereby improve the income level of the
farmers. During the last one decade, India moved from a position of scarcity to surplus in Food. Given the
trade in production of food commodities, the Food Processing Industry in India is on an assured track of
growth and profitability. It is expected to attract phenomenal investment in capital, human, technological
and financial areas. The total food production of India is estimated to double in the next ten years. Hence
there is an opportunity for large investments in food and food processing technologies, skills and
equipment. The major interventions in this context are, for example, Canning, Dairy and Food Processing,
Specialty Processing, Packaging, Frozen Food/Refrigeration and Thermo Processing. Fruits and Vegetables,
Fisheries, Milk and Milk Products, Meat and Poultry, Packaged / Convenience Foods, Alcoholic Beverages
and Soft Drinks and Grains. Health food and health food supplements are other rapidly rising segments of
this industry. India is the home of a wide variety of fruits & vegetables. India is the second largest producer
of fruits and vegetables in the world. India grows approximately 149 million MT fruits & vegetables per
annum. Only about 10 per cent of the Fruit & Vegetables produced are commercially processed. The
produce is perishable and seasonal and is often wasted. It is being increasingly realized that processing
capacity needs to be increased so as to reduce wastage. At the same time, market trends do show an
increasing acceptance of new product concepts in the processed foods. Demand for processed/convenience
food is constantly on the rise.
 The Indian food processing industry is still small and highly fragmented. A large number of players in this
industry are small sized companies, and are largely concentrated in the unorganized segment. This segment
accounts for more than 70% of the output in volume terms and 50% in value terms. As some of the leading
corporate entities of the country have entered the food retail in a big way, the organized sector is expected
to grow at a much faster pace.

The objective of the scheme of Cold Chain, Value Addition and Preservation Infrastructure is to provide
integrated cold chain and preservation infrastructure facilities without any break from the farm gate to the
consumer. It covers pre-cooling facilities at production sites, reefer vans, mobile cooling units as well as
value addition centres which includes infrastructural facilities like Processing/ Multi-line Processing/
Collection Centres, etc. for horticulture,  organic produce, marine,  dairy, meat and poultry etc. Individual
or group of entrepreneurs can set up integrated cold chain and preservation infrastructure with business
interest in cold chain solutions. It can also be set up by those who manage supply chain enabling linking
groups of producers to the processors and market through well-equipped supply chain and cold chain.

The firm intends to establish an integrated cold chain infrastructure along the value chain i.e. establishment
of value addition to the fresh segment through freezing and shelf life extension in the production areas and a
cold chain distribution infrastructure at the market gateway and link them with refrigerated trucks in the
vegetables growing belt of Uttarakhand namely Udham Singh Nagar – a much needed infrastructure.

The project will be implemented through Jai Kissan Foods Firm. The promoters of this new firm have
existing business in the fresh exotic vegetable segment and are well established in the business. Jai Kissan
Foods Firm is a newly incorporated partnership firm under the Partnership Act of India. The promoters of
this firm have long association with Fruit and Vegetable processing and trade and service industry. The
Project is planned by promoters in the heart of cereal and vegetables growing area of Uttarakahnd -
Kashipur in Udham Singh district - with access to Tarai tropical area 60 KM radius for all the year round
availability of raw material.

2. Industrial Scenario
Agriculture plays a vital role in India’s economy. Over 58 per cent of the rural households depend on
agriculture as their principal means of livelihood. The share of primary sectors* (including agriculture,
livestock, forestry and fishery) is estimated to be 20.4 per cent of the Gross Value Added (GVA) during
2016-17 at current prices. GVA from the sector is estimated to have grown at 3 per cent in FY18.
The Indian food industry is poised for huge growth, increasing its contribution to world food trade every
year due to its immense potential for value addition, particularly within the food processing industry. The
Indian food and grocery market is the world’s sixth largest, with retail contributing 70 per cent of the sales.
The Indian food processing industry accounts for 32 per cent of the country’s total food market, one of the
largest industries in India and is ranked fifth in terms of production, consumption, export and expected
growth. It contributes around 8.80 and 8.39 per cent of Gross Value Added (GVA) in Manufacturing and
Agriculture respectively, 13 per cent of India’s exports and six per cent of total industrial investment.

During 2017-18 crop year, food grain production is expected to reach a record 277.49 million tonnes.
During 2016-17, it was 275.68 million tonnes. India has been the world's largest producer of milk for the
last two decades and contributes 19 per cent of the world's total milk production. India is emerging as the
export hub of instant coffee which has led to exports of coffee increase 17 per cent in calendar year 2017 to
reach US$ 958.80 million. Tea exports from India reached a 36 year high of 240.68 million kgs in CY 2017.

India topped the list of shrimp exporters globally in 2016 with exports of US$ 3.8 billion which are
expected to double to US$ 7 billion by 2022. Total area in India, sown with rabi crops reached 64.29
million hectares in February 2018. India is the second largest fruit producer in the world. India's horticulture
output reached 300.64 million tonnes in 2016-17 and is expected to reach 305.43 million tonnes in 2017-
18.  Agricultural export constitutes 10 per cent of the country’s exports and is the fourth-largest exported
principal commodity. Agricultural exports from India reached US$ 28.09 billion during April 2017-January
2018 with exports of basmati, buffalo meat reaching US$ 6.19 billion and US$ 6.59 billion, respectively.
India is the largest producer, consumer and exporter of spices and spice products. Spice exports from India
grew by 6 per cent year-on-year between April-September 2017 to US$ 1.37 billion. Dairy sector in India is
expected to grow at 15 per cent CAGR to reach Rs 9.4 trillion (US$ 145.7) billion by 2020.

The online food delivery industry grew at 150 per cent year-on-year with an estimated Gross Merchandise
Value (GMV) of US$ 300 million in 2016. The sector grew 15 per cent every quarter during January-
September 2017.

175 different types of vegetables are grown in India although potato, tomato, onion, cabbage and
cauliflower account for 60 per cent of the total production. India's main foodgrain crops include rice, wheat,
coarse cereals and pulses. India grows a wide variety of horticultural crops including vegetables, fruits,
potatoes, medicinal and aromatic plants and plantation crops. Agro-processing industries have also grown
rapidly in India, considering the huge quantity of agricultural produce in India.
 Products which come under the frozen food industry are fruits, vegetables, fisheries, milk products, meat,
poultry and other packaged and convenience foods. Although it is a huge producer of food products, India
still has immense untapped potential in the frozen food export industry. The demand for Indian recipes from
the Indian diaspora settled across the globe has served as an impetus to development of the frozen food
industry in recent years. Vegetables like drumsticks and okra and prepared food like chapattis and parathas
are nowadays available in frozen form in neat packets all over the world.

India’s potential to emerge as one of the leading frozen vegetables suppliers can be judged from the fact that
where in case of frozen vegetables the world trade has grown by 7.5 per cent, 17 per cent growth has been
registered in case of India. Similarly in case of sweet corn as well, India’s trade in world market has grown
84 times as compared to only 6.04 per cent in total world trade.

3. Promoters:
The Firm has been promoted by the under mentioned people:

a. Mr. Honey Arora - Aged 31 years is partner in the firm. He has completed his Post Graduation and has
been involved in the business for past many years. He has a vast experience of more than 5 years in the
food processing industry. He was also a partner in M/s Shree Jai Jagdambey Rice Mill, a food
processing industry for more than 5 years.

b. Mr. Sanjay Kumar – Aged 36 years is partner in the firm. He has completed his Post Graduation and
has been involved in the business for past many years. He has a net worth of Rs.580.27 Lacs as
projected in the report.

c. Mr. Kavita Devi – aged around 37 years, is also a partner in the firm. He has completed his Post Graduation and
is involved in the business line for many years. He has a net worth of Rs.216.02 Lacs as projected in the
report. He has a net worth of Rs.216.02 Lacs as projected in the report.

d. Mr. Atul Kumar – aged around 29 years, is a graduate and is involved in food processing industry since last 1
year. He has a net worth of Rs.266.00 Lacs as projected in the report.

e. Mr. Ajay Kumar – aged around 26 years, is a graduate and is involved in food processing industry since many
years. He has a net worth of Rs.251.25 Lacs as projected in the report.
 f. Mr. Arjun Kumar – aged around 21 years, is a graduate and is involved in food processing industry since many
years. He has a net worth of Rs.252.50 Lacs as projected in the report.

Comments: - Promoters of the Firm are having sufficient experience in the field of Business. Their
existing experience in cultivation of Mushroom and food grain industry provides them
with an insight in to the existing market and gives them an edge over others. Food
Processing Industry helps them to procure raw materials and selling the processed
products efficiently in the market.

4. Allied & Associate Concerns

As informed to us, there is one Associate Concerns of Firm namely, M/s U K Stone Crusher Private Limited . Details of
the same are given as under:-

U K Stone Crusher Private Limited:-

Particulars 2016-17 2015-16 2014-15

Sales 1,56,31,693.68 4,43,99,058.87 4,47,58,254.92

Net Profit -36,20,650.96 (647534.23) 74978.42

Capital 1,08,69,000.00 1,08,69,000.00 1,08,69,000.00

Loan from Bank 1,70,00,443.00 2,17,46,172.00 2,46,70,472.00

Remarks in Audit Report Nil Nil Nil

Comments: - Promoters of the Firm are having sufficient experience in the food processing field of
business. Existing loans are with Bank of Baroda and party is exclusively dealing with the
Bank. All the loans are smoothly running. Existing business has a good sale in the market
and adds to the repute of the firm. (Financial Statements are enclosed for perusal).

5. About the Firm

Firm is newly incorporated partnership firm under the name and style of “M/s Jai Kissan Foods” with its administrative
office at Village- Nijhra, Kashipur U.S. Nagar, Uttarakhand -244713. The partners bring together strength in sourcing of
agriculture produce which is Cultivation of Mushroom and are also engaged in real estate field. The main plant site is
situated at Village- Nijhra, Kashipur U.S. Nagar, Uttarakhand -244713. The object is to process Fresh Fruits and
Vegetables into Frozen form through IQF (Individual Quick Freezing) technique.

The lead Promoters of this project are already in food processing industry for the past 10 years. They are highly skilled in
the field of commerce and Industry since generations. Following are the list of the promoters for this proposed project:-

1. Mr Sanjay Kumar- 35%

2. Mrs. Kavita Devi- 35%

3. Mr Ajay Kumar- 10%

4. Mr. Arjun Kumar- 10%

5. Mr. Atul Kumar- 5%

6. Mr. Honey Arora- 5%

6. About the Project

The promoters of this project are highly skilled in the field of Agriculture/Farming and their projection for setting up this
type of agro-based project indicates very bright future in time to come. The firm intends to establish an integrated cold
chain infrastructure along the value chain i.e. establishment of value addition to the fresh segment through freezing and
shelf life extension in the production areas and a cold chain distribution infrastructure at the market gateway and link
them with refrigerated trucks in the vegetables growing belt of Uttarakhand namely Udham Singh Nagar – a much needed
infrastructure. M/s Jai Kissan Foods, an experienced player in Agribusiness and food processing, wants to establish an
integrated cold chain facility in Kashipur consisting of

a. An Individual Quick Freezing facility for value addition in different horticultural produce.

b. A multi-commodity Hi –Tech Variable Humidity Cold Storage facilities for providing requisite storage
infrastructure to horticultural produce

c. Logistics infrastructure

Total cost of the project has been projected to tune of Rs. 2301.04 Lacs. Processing machineries are Indigenous and
imported.

After tourism, agriculture is the second most important contributor to the economy of Uttarakhand. Cereals, pulses, oil
seeds, sugar cane, onion and a variety of fruits and vegetables are grown here. Of late farmers are adopting floriculture
and cultivation of exotic vegetables. The state recently has started export of litchi and flowers. Since majority of the
population of Uttarakhand is occupied in agricultural sector, agriculture has to be among the top contributors of revenue
in Uttarakhand economy.

However, infrastructure for value addition and end to end cold chain is almost absent in the state. This is hindering the
growth of horticultural sector in the state. Cold stores, whose number is limited, are involved mainly in storage of
potatoes. Kashipur (Udham Singh Nagar) is an important industrial town of Uttarakhand. It is home to a number of
manufacturing units. Availability of skilled and semi-skilled labour for these units is not an issue with a number of
industrial training centers being present in the vicinity. Uttarakhand produces a variety of fruits and vegetables. The soil
and climatic condition of the state is conducive for growing high value off season crops.

The main objective of the project is setting up an integrated cold chain facility in Kashipur, Uttarakhand consisting of an
Individual Quick Freezing (IQF) processing plant for fruit and vegetables with an installed capacity of capacity 5 MT/hr
with end to end cold supply chain and logistics in place.

An Individual Quick Freezing facility shall be installed for value addition in different fruits and vegetables. The installed
capacity of IQF line would be 5MT/hr. It will deal with products such as green peas, Mixed Vegetables, Sweet corn,
Peach, Plum, Apricot, Apple, Mango slices/Pulps, Broccoli, Bell pepper, Asparagus, Mushrooms, etc.

Location of the project is well suited as it’s a CATCHMENT AREA, which provides ample of favorable climate and
temperature to produce the agricultural grow. Below attached is the area map of Udham Singh Nagar which shows that
the belt of Kashipur and adjoining areas is favorable for producing agricultural products.
7. Technology
Individual Quick Freezing (I.Q.F.) is the latest technology available in freezing and with the advent of the same, it is now
possible to preserve and store raw fruit and vegetables in the same farm-fresh condition for more than a year, with the
color, flavor and texture of produce remaining as good as fresh from the farm.

The technology selected for the proposed unit is Individual Quick Freezing. This system involves the use of a blast of
cold air which, when directly on the food products, quickly freezes them. The vegetables are also frozen in air blast tunnel
(chamber freeze) in which cold air at –40 degree C is rapidly moved around the product giving it a cryogenic shock and
freezing it instantly. This type of freezing results in the product free rolling and not clotting into lumps.

Looking at the multiplicity of products and their storage requirements, multi- chambered cold storage has been chosen
instead of a single chambered conventional cold store. This is, while meeting the storage requirements, will result in
significant amount of power saving.

The plant and machinery for the proposed project shall be procured both from national and international sources . For
IQF the machineries shall consist of fluidized bed IQF along with indeed shaker and frost busters, refrigeration system
along with a walk-in freezer room and a spiral freezer (for ready to eat food items). For cold storage, the machinery may
consist of compressors, condensers, cooling units, induction motor etc which are part of the refrigeration system. PUF
panels will be used for insulating the cold storage chambers.

In IQF, each piece is frozen individually using technique of fluidization resulting in freezing of fruit and vegetables only
in 10 to 12 minutes which otherwise takes at least 3 to 4 hours or even more in the blast freezer. This results into better
texture and there is no lump/ block formation and the product is free flowing.

8. Manufacturing Process
The Process is totally integrated from the receipt of raw material to final packaging.

Process Description

Grower Storage Raw materials –Collected by plant from pickup points in plastic crates to the
plant. Total produce is procured after primary grading by farmer for
Marketable A & B grade and processing C & D grade.

Acceptance sampling Samples of the produce are taken from the supply for acceptance of
marketable and processing grades segregated and grower payments are
decided after inspection and weight at plant.
Grading In some fruits and vegetables size and maturity grading is required. The final
grading on colour,maturity,size,defects

Performed in the pack house and Washing All fruits and vegetables are washed to remove field contamination.
produce is segregated as per grades for The produce for fresh market is further treated as per product and suitably
fresh marketing and processing. packed for storage in cold rooms and delivery to refer vans for supply to
retail.

Preparation/Peeling The produce for processing is segregated in pack house and sent for
processing plant. The processing operations are conducted as per standard
process for each product.

Depoding/Cutting Peas are depoded in automatic depoder machine. Other products are cut
according to market specifications or buyer specifications. Special cutting
equipment are proposed for all types of raw materials proposed in the product
mix. In case of fruits the slices are prepared after peeling before IQF and
 pulps juices are extracted – pasteurized-chilled for storage in frozen store.

Blanching Many Vegetables and fruits require blanching at 90 to 95 Deg C for 2- to 5

minutes to inactivate per oxidase enzyme

Pre-cooling/Chilling Blanched produce is pre-cooled to room temperature and chilled to 5 to 7

Deg.C and moisture is removed by vibro conveyor /blower before feeding to
the IQF.

Freeze Tunnel Produce is quickly frozen in the IQF machine to (-) 18oC.

Packaging The IQF frozen products are packaged into bulk bags or retail packs.
Deep Freeze
Packages are stored in a cold storage warehouse until shipment to grocery
Cold store stores, restaurants and other customers.

Packaging The IQF frozen products are packaged into bulk bags or retail packs.

9. Products & Capacity

The Installed capacity of the plant is to handle 5 MT/per hour. It will deal with products such as green peas, Tomatoes,
Lady Finger, Cauliflower, Potatoes, Mango, Gauva, Lichi, Lemon etc. To store frozen produce the unit will have 2 deep
freezer of 1,000 MT capacity each. The cold store chambers will be connected through temperature controlled dock area.
The unit will also have 2 multiple chambers of cold stores with a total capacity of 1,000 MTs each to provide amenable
storage facility to other fruits and vegetables which will not be going through IQF process. Individual chambers of a
chamber will be 100 MT each, there will be a centralized control panel to maintain different temperature and humidity
level as per the requirement of the produce to be stored in the chamber.

10. Rationale behind integrated cold chain at Kashipur

Uttarakhand produces a variety of fruits and vegetables. The soil and climatic condition of the state is conducive for
growing high value off season crops. The state produces a lot of horticultural produce every year. However, due to lack of
proper post harvest and value addition infrastructure the value realized by the farmer is not appreciable. Moreover, due to
the lack of last mile connectivity products are also not evacuated properly.
Thus there is a requirement of immediate intervention both on post harvest and value addition infrastructure and last mile
connectivity. However, the long term sustainability of such infrastructures is dependent, to a great extent, on the ability to
access remunerative market places.

Kashipur, as a geographical location, has access to major markets of the country including Delhi/NCR. It also acts as an
intervening market for the horticultural produce of Uttarakhand. Thus if an Integrated Cold Chain is established in
Kashipur it would offer the much needed post harvest and value addition infrastructure to the farmers and shall also
ensure long term sustainability. Further, the catchment area of Kashipur provides ample of raw material for the promoters
to be interested in setting up the unit at Kashipur. Below give is the analysis of area and production at Kashipur:-

S.no. Name of the Vegetable/Fruit Area (in HA) Production (in MT)

1. Peas 3590.20 25631.75

2. Potatoes 519.51 12030.52

3. Cauli Flower 510.47 8095.45

4. Tomato 430.74 6094.35

5. Lemon 135.30 326.35

6. Cabbage 499.49 7690.27

7. Mango 2613.88 18548.14

8. Gauva 837.71 5999.35

9. Lichi 458.28 2586.17

11. Marketing Strategies

The major reason for the boom in frozen convenience vegetables is the changes in today’s Lifestyle. The strongest growth
period for the sector was during the 1980s and early 90s due to several social conditions, primarily the growing numbers
in working women, which increased the demand for convenience food as they had far less time to spend in the kitchen.
Therefore manufacturers and retailers have developed ranges that mirror the changes in customer requirement. Quick,
convenient food that is acceptable to both children and adults is in high demand. Frozen food is now an important part of
a family's diet.

Today's consumer is a health-minded label reader who, despite dinner time protests from the kids, understands the benefit
of daily, regular vegetable consumption. And when vegetables go out of season, frozen varieties are an excellent year-
round, easy-to-prepare and long-keeping alternative that retain all of the vitamins and nutrients of fresh vegetables,
providing that the vegetables are frozen at the peak of freshness.

For centuries, Indian consumers have served fresh vegetables with their daily diet of rice or chapattis. Today, although
more meat and fish are consumed, vegetables remain an important part of the diet.

But in the recent times, despite the inflation, changing lifestyles and economic development on India are creating a shift
in buying patterns. Consumers are discovering they have less time to shop and prepare meals at home. This is especially
true for contemporary Indian women, who are entering the workforce in record numbers. Consumers are learning that
frozen vegetables are convenient and easy to prepare, and when it comes to storage, they have a longer shelf life. As a
result, frozen vegetables purchases are up, creating excellent import opportunities for Indian firms for frozen potatoes,
corn, broccoli, cauliflower, and other vegetables.

India is the world's second largest producer of food next to China, and has the potential of being the biggest with the food
and agricultural sector.

The total food production in India is likely to double in the next ten years and there is an opportunity for large
investments in food and food processing technologies, skills and equipment, especially in areas of Canning, Dairy and
Food Processing, Specialty Processing, Packaging, Frozen Food/Refrigeration and Thermo Processing. Fruits &
Vegetables, Fisheries, Milk & Milk Products, Meat & Poultry, Packaged/Convenience Foods, Alcoholic Beverages &
Soft Drinks and Grains are important sub-sectors of the food processing industry.

Rapid urbanization, increased literacy and rising per capita income have all caused rapid growth and changes in demand
patterns, leading to tremendous new opportunities for exploiting the large latent market. An average Indian spends about
50% of household expenditure on food items. Demand for processed/convenience food is constantly on the rise.

The unit shall sale its produce mainly to the organized retailers operating in the domestic market. It will also target
institutional buyers such as army to sale its produce. The industry has made good progress in India during last decade and
taken roots in the Indian food sector. It will target to sell at least 20% of its products in exports markets.
 12. Government Approvals/Sanctions
Approval/Consent Approving Organization Status

Firm Registration Registrar of Firms Registration not Done, Advisable to

obtain the same
PAN Number Income Tax Department To be obtained
GST Number GST To be obtained
Food Licence FSSAI To be Obtained once Commercial
Production Commences
Fire Licence Fire Department Provisional Registration to be
Obtained before Construction starts
Sanctioned Map Local Authority Kashipur To be Obtained before Construction
starts
Electricity Connection Electricity Department To be obtained before Construction
Starts
Pollution Control Board Pollution Control Board It will be obtained after completion
of Building

Comments:-

The copies of the approvals are provided on record to us and were verified by us. However, there are several
approvals which are yet not applied and shall be applied in a short while once the construction commences.
Copies of such above mentioned approvals should be submitted to the Banker once the same is received by the
borrower.

13. Manpower
Total requirement of technical and other bon-technical manpower in the plant is estimated at 112 persons. The total
employee cost for 112 employees amounts to Rs 15.77 Lacs per month which appears to be reasonable keeping in mind
the current trend of wage and salary payment. The details of which is enclosed as under:-

Wages to The Labour

Annexure - XIII
             
Amount
Particulars Wages No. (Rs.) Total
      Per Month     (Rs.)

A) Technical Staff (One Month)

General Manager 30000.00 1 30000.00

Production / Factory Manager 80000.00 2 160000.00
Agronomist 20000.00 1 20000.00
Farm Coordinators 8000.00 8 64000.00
Engineer 12000.00 2 24000.00
Plant Operators 7500.00 6 45000.00
Lab & Production Asst 7500.00 6 45000.00
Technical Field Executives 9000.00 5 45000.00
433000.00
Add 10% Perquisites 43300.00 476300.00

Other Staff Workers(One

B) Month)
Marketing Manager 10000.00 1 10000.00
Accountant 7500.00 2 15000.00
Sales Executives 7500.00 5 37500.00
Clerks 6000.00 2 12000.00
Driver 6000.00 3 18000.00
Peon 5500.00 3 16500.00
Store Incharge 10000.00 2 20000.00
Machanic 7500.00 2 15000.00
Supervisors 7500.00 5 37500.00
Skilled Labour 6000.00 10 60000.00
Semi Skilled Labour 4800.00 20 96000.00
Unskilled Labour 4800.00 10 48000.00
Helpers 5000.00 8 40000.00
Total 104 425500.00
 Add 10% Perquisites 42550.00 468050.00

Total Of Factory Supervision 944350.00

Wages per annum (Rs. in Lacs) 113.32

Salary for the Staff          

Amount
Salary No. (Rs.) Total
        Per Month (Rs.)   (Rs.)

A) Administrative Staff
Director Cum Chief Executive 40000.00 2 80000.00
80000.00
Add 20% Perquisites 16000.00 96000.00

B) Commercial Staff

Accounts Clerk 8000.00 1 8000.00

Watchman/GateKeeper 4000.00 2 8000.00
Peon 5000.00 2 10000.00
Sweeper (Part Time) 3500.00 1 3500.00
Total 6 29500.00
Add 20% Perquisites 5900.00 35400.00
Total 131400.00

Administrative Salary per annum (Rs. in Lacs) 15.77

Comments: - a. Contractual Labour and Casual Labour are available in abundance in the nearby area.

b. The Staff and the rates as provided are expectable in the present scenario.

14. Location of Plant

Promoters have acquired a leasehold plot of land measuring approximately 2.62 Acre for setting up the unit at Village
Moza, Nijra, Kashipur District Udham Singh Nagar Uttarakhand. The area has got all the required infrastructural
facilities. Being located on National Highway, transport, skilled labour and maintenance services are easily available. The
proposed size of the plot is ideal for the project with enough room for expansion. The site is situated within the fruits and
Vegetables growing area, as such raw material is easily available, moreover the unit will be able to access markets at
NCR, Uttar Pradesh and parts of Uttarakhand for its finished product as the site is strategically located within 300-400
kms from the said areas. The promoters will have to recruit skilled and administrative workers from outside the local area
but unskilled workers are available locally and are cost effective. Water is also available.

1. Raw material.
2. Market.
3. Power & Fuel.
4. Climate.
5. Transport facilities.
6. Water availability
7. Waste disposal
8. Labor availability.
9. Taxation & Incentive
10. Community Factory

The site location is suitable for installing the plant since there is proper availability of raw material. The soil and
climatic condition of the state is conducive for growing high value off season crops. Proper transport facility and
water facility is available at the site. The market trend in the area is also supportive.

15. Cost of Project & Means of Finance

Cost of Project Particulars Rs. In lacs
Land & Site Development Already Owned
Civil Construction 454.93
Plant & Machinery 1552.80
MMWC 206.89
Preoperative Expenses 60.00
Misc. Fixed Assets 18.20
Securities 8.23
Total 2301.04

Means of Finance Particulars Rs. in lac

Promoters' Capital 551.04
Term Loan 750.00
Subsidy from MFPI 1000.00
Total 2301.04
 16. Projected Repayment of Term Loan
The term loan of Rs. 750.00 lacs has been projected by the party. This term loan has been projected to be
repaid in 7 years of installment of Rs.15.00 lacs in first four quarter. Interest at a rate of 9% pa has been
estimated to be charged to the Project as per Bank’s Term as given in Loan Sanction. Any Changes in the
rate of interest may result in change of Financial Results.
MONTH AMT. O/S INTEREST TOTAL AMOUNT OF BALANCE PRINCIPAL INTEREST PRINCIPAL
  AT BEG.   AMTOUNT INSTALMENT O/S AMT. ANUUAL AMOUNT
Year 20-21
1 73500000.00 566562.50 73500000.00 0.00 73500000.00 0.00
2 73500000.00 566562.50 74066562.50 0.00 73500000.00 0.00
3 73500000.00 566562.50 74066562.50 1500000.00 72000000.00 1500000.00
4 72000000.00 555000.00 72555000.00 0.00 72000000.00 0.00
5 72000000.00 555000.00 72555000.00 0.00 72000000.00 0.00
6 72000000.00 555000.00 72555000.00 1500000.00 70500000.00 1500000.00
7 70500000.00 543437.50 71043437.50 0.00 70500000.00 0.00
8 70500000.00 543437.50 71043437.50 0.00 70500000.00 0.00
9 70500000.00 543437.50 71043437.50 1500000.00 69000000.00 1500000.00
10 69000000.00 531875.00 69531875.00 0.00 69000000.00 0.00
11 69000000.00 531875.00 69531875.00 0.00 69000000.00 0.00
12 69000000.00 531875.00 69531875.00 1500000.00 67500000.00 1500000.00 6590625.00 6000000.00
Year 21-22 0.00 0.00
13 67500000.00 520312.50 68020312.50 0.00 67500000.00 0.00
14 67500000.00 520312.50 68020312.50 0.00 67500000.00 0.00
15 67500000.00 520312.50 68020312.50 3000000.00 64500000.00 3000000.00
16 64500000.00 497187.50 64997187.50 0.00 64500000.00 0.00
17 64500000.00 497187.50 64997187.50 0.00 64500000.00 0.00
18 64500000.00 497187.50 64997187.50 3000000.00 61500000.00 3000000.00
19 61500000.00 474062.50 61974062.50 0.00 61500000.00 0.00
20 61500000.00 474062.50 61974062.50 0.00 61500000.00 0.00
21 61500000.00 474062.50 61974062.50 3000000.00 58500000.00 3000000.00
22 58500000.00 450937.50 58950937.50 0.00 58500000.00 0.00
23 58500000.00 450937.50 58950937.50 0.00 58500000.00 0.00
24 58500000.00 450937.50 58950937.50 3000000.00 55500000.00 3000000.00 5827500.00 12000000.00
Year 22-23 0.00 0.00
25 55500000.00 427812.50 55927812.50 0.00 55500000.00 0.00
26 55500000.00 427812.50 55927812.50 0.00 55500000.00 0.00
27 55500000.00 427812.50 55927812.50 3000000.00 52500000.00 3000000.00
28 52500000.00 404687.50 52904687.50 0.00 52500000.00 0.00
29 52500000.00 404687.50 52904687.50 0.00 52500000.00 0.00
30 52500000.00 404687.50 52904687.50 3000000.00 49500000.00 3000000.00
 31 49500000.00 381562.50 49881562.50 0.00 49500000.00 0.00
32 49500000.00 381562.50 49881562.50 0.00 49500000.00 0.00
33 49500000.00 381562.50 49881562.50 3000000.00 46500000.00 3000000.00
34 46500000.00 358437.50 46858437.50 0.00 46500000.00 0.00
35 46500000.00 358437.50 46858437.50 0.00 46500000.00 0.00
36 46500000.00 358437.50 46858437.50 3000000.00 43500000.00 3000000.00 4717500.00 12000000.00
Year 23-24 0.00 0.00
37 43500000.00 335312.50 43835312.50 0.00 43500000.00 0.00
38 43500000.00 335312.50 43835312.50 0.00 43500000.00 0.00
39 43500000.00 335312.50 43835312.50 4000000.00 39500000.00 4000000.00
40 39500000.00 304479.17 39804479.17 0.00 39500000.00 0.00
41 39500000.00 304479.17 39804479.17 0.00 39500000.00 0.00
42 39500000.00 304479.17 39804479.17 4000000.00 35500000.00 4000000.00
43 35500000.00 273645.83 35773645.83 0.00 35500000.00 0.00
44 35500000.00 273645.83 35773645.83 0.00 35500000.00 0.00
45 35500000.00 273645.83 35773645.83 4000000.00 31500000.00 4000000.00
46 31500000.00 242812.50 31742812.50 0.00 31500000.00 0.00
47 31500000.00 242812.50 31742812.50 0.00 31500000.00 0.00
48 31500000.00 242812.50 31742812.50 4000000.00 27500000.00 4000000.00 3468750.00 16000000.00
Year 24-25 0.00 0.00
49 27500000.00 211979.17 27711979.17 0.00 27500000.00 0.00
50 27500000.00 211979.17 27711979.17 0.00 27500000.00 0.00
51 27500000.00 211979.17 27711979.17 4000000.00 23500000.00 4000000.00
52 23500000.00 181145.83 23681145.83 0.00 23500000.00 0.00
53 23500000.00 181145.83 23681145.83 0.00 23500000.00 0.00
54 23500000.00 181145.83 23681145.83 4000000.00 19500000.00 4000000.00
55 19500000.00 150312.50 19650312.50 0.00 19500000.00 0.00
56 19500000.00 150312.50 19650312.50 0.00 19500000.00 0.00
57 19500000.00 150312.50 19650312.50 4000000.00 15500000.00 4000000.00
58 15500000.00 119479.17 15619479.17 0.00 15500000.00 0.00
59 15500000.00 119479.17 15619479.17 0.00 15500000.00 0.00
60 15500000.00 119479.17 15619479.17 4000000.00 11500000.00 4000000.00 1988750.00 16000000.00
Year 25-26 0.00 0.00
61 11500000.00 88645.83 11588645.83 0.00 11500000.00 0.00
62 11500000.00 88645.83 11588645.83 0.00 11500000.00 0.00
63 11500000.00 88645.83 11588645.83 4000000.00 7500000.00 4000000.00
64 7500000.00 57812.50 7557812.50 0.00 7500000.00 0.00
65 7500000.00 57812.50 7557812.50 0.00 7500000.00 0.00
66 7500000.00 57812.50 7557812.50 4000000.00 3500000.00 4000000.00
67 3500000.00 26979.17 3526979.17 0.00 3500000.00 0.00
68 3500000.00 26979.17 3526979.17 0.00 3500000.00 0.00
69 3500000.00 26979.17 3526979.17 3500000.00 0.00 3500000.00
70 0.00 0.00 0.00 0.00 0.00 0.00
71 0.00 0.00 0.00 0.00 0.00 0.00
72 0.00 0.00 0.00 0.00 0.00 0.00 520312.50 11500000.00
17. Land
Promoters have acquired a plot of land measuring approximately 2.62 acres for setting up the unit at Village Moza, Nijra,
Kashipur District Udham Singh Nagar Uttarakhand. As the ideal location for the proposed plant. The site spread over an
area of 1.0602 hectares. Required infrastructures/utilities like electricity, water, etc are present at the site.

18. Building
Cost of land development and non-technical civil works are included in the cost of project and is estimated by Shakti
Associates (Kashipur) a reputed architect and has been estimated at Rs.454.93 lakh and includes cost components such as
land leveling and drainage, internal roads, tube well, administration block, security gate House, tube well, etc. Details of
the buildings, as given in project report are given as under:-

COST ESTIMATES OF BUILDING CONSTRUCTION

A FARM LEVEL INFRASTRUCTURE -SETELLITE COLLECTION
CENTRES

a) Location -1 - HALDWANI
Aggregation Shed L.S. 5.00
b) Location 2 - RAMANAGR
Aggregation Shed L.S. 5.00

TOTAL A(a+b) 10.00

FARM LEVEL INFRASTRUCTURE / DISTRIBUTION HUB-

B Village Area Rate
1 MAIN BUILDING
a Deep Freezers, Processing Hall, Ante Room (Sqmt) (Per Sqmt)
Process Hall, Cold Storage, Machine Room 3489.13 5210.00 181.78
Raw Material Room & Lab
TOTAL (a) 181.78

b Mezzaninr Floor Cold Storage Deep -4 Nos Area Rate

(Sqmt) (Per Sqmt)
i) Civil Works 1311.84 808.26 10.60

ii) Structure Work 1311.84 3113.89 40.85

TOTAL (b) 51.45
c Pre Engineering Building
Deep Freezers, Processing Hall, Ante Room, Machine Room 3489.13 3228.00 112.63

TOTAL MAIN BUILDING 1 (a+b) 345.87

Area Rate
d Other Comman Technical Civil Works (Sqmt) (Per Sqmt)
1 Boiler Feul Shed 57.49 6567.11 3.78
2 ETP Room 68.93 14604.70 10.07
3 OHT & Boring 19.89 31623.93 6.27
 4 Transformer (Foundation) 26.88 10788.69 2.91
5 Weigh Bridge 47.52 13741.58 6.53
6 D.G. (Foundation) 26.88 10788.69 2.91
7 Cooling Tower 37.17 4627.38 1.73
8 Sanitation / Drinage LS L.S 2.00

TOTAL (C) 36.19

C
TOTAL TECHNICAL CIVIL WORKS (A+B+C) 392.06
Area Rate
Non- Technical Civil Works (Sqmt) (Per Sqmt)
1 Office Block GF 126.00 14722.00 18.55
Office Block FF 126.00 8500.00 10.71
2 Labour Quarters 33.03 12867.00 4.25
3 Guard Room 24.57 19332.50 4.75
4 Site Development & Earth Filing LS 5.00
5 Security & Time Office 73.50 12748 9.37
6 Boundry Wall 296.05 RNMT 3458.87 10.24

TOTAL NON - TECHNICAL CIVIL WORKS (D) 62.87

GRAND TOTAL 454.93

(A+B+C+D)
Say ( Rs. in Lacs) 454.93

Comments: - Construction etc is yet to begin at the site which shall commence shortly. Cost of Construction
is in alignment with the rates prevalent in the market. Bank must ensure that the constructed
area is as per the dimensions mentioned in the project report.

19. Implementation Schedule:-

Activity Expected Date of Commencement Expected date of Completion

Land Acquisition Already Acquired

Construction Start July 2019 September 2019

Plant & Machinery Order August 2019 August 2019

Plant & Machinery Receipt October 2019 November 2019

Erection & Commissioning November 2019 November 2019

Trial Run December 2019 December 2019

Commercial Production December 2019 December 2019

Comments: - The critical time in completion of project is influenced by:

  Obtaining necessary statutory approval

 Resource mobilization

 Civil construction

 Machinery order

 Installation and commissioning of machinery

 Procurement of raw material on long term basis

 Commercial trial runs

On our visit to the proposed site, we found that the land is in possession of the borrower and agricultural produce is being
currently done on the site. Construction is yet to begin which according to the promoters shall start very shortly once the
wheat is being harvested, which may delay the project a bit. However, provision for contingency etc has already been
done in the project.

20. Plant & Machinery

As per the quotations of suppliers of plant and machinery, the total cost is Rs 1552.80 Lacs. The details are
enclosed in project report.

Details of Plant & Machinery

             
Name of
S.No. Description Including Broad Specification No. Rate Manufacturer/supplier Amount Basis of
(Rs. In
          lacs) valuation

FARM LEVEL INFRASTRUCTURE SATELLITE COLLECTION

A CENTRE

a) Location -1 - HALDWANI Total

1 Weighing Machines (300 Kg) 1 0.25 0.25
3
3 Grander/Sorter 1 MT/HR 18.00
Total 18.25
b) Location 2 - RAMANAGR
1 Weighing Machines (300 Kg) 1 0.25 0.25
Pre Cooling Chambers 1 10.00

Total 10.25

TOTAL A(a+b+c) 28.50

B FARM LEVEL INFRASTRUCTURE / DISTRIBUTION HUB-
Village
a) IQF & FREEZER ROOMS
MT/
1 Pre-Processing Line - Peas 5 HR 165.00
MT/
2 Pre-Processing Line - for Other Vegetables 5 HR 36.00
MT/
3 IQF Freezer 5 HR 205.00
4 Refregeration System for IQF & Freezer Rooms 260.00
5 Puff Panels for Frozen Chambers 128.00
7 Air Curtains, Air Compreesors 4.00
8 Metal Detectors 5.00

TOTAL
(a) 803.00
b) COLD ROOMS (2 Nos) - 1000 MT
Refrigeration System for Cold Rooms
1 Puff Panels 40.00
2 Ante Room 8.00
3 (Reciprocating Compressors (1 Nos)
Air Cooling Units, Receivers,
4 Refrigeration Pipes & Fittings, Refrigeration Pipes & Fittings, 1000 MT 50.00
refrigeration Line Insulation, Temperature Controllers,
Fittings & Valves & Other Standard Assosories
PLC /Monitoring Equipments TOTAL (b) 98.00

c) CA Store - 100 MT
Puff Panels 15.00
Ante Room 3.00
CA Equipment, Refrigeration System 28.00

TOTAL
(c) 46.00

TOTAL B (a+b) 947.00

C Reefer / Mobile Vans 3 28MT 58.50

Reefer / Mobile/ Pre Cooloing Vans
TOTAL (C) 58.50

D Solar Power System 105 KW 45.00

TOTAL (D) 45.00

E Other Misc Machinery 38.50

 Steam Boiler & Assecessaries - 2
1 TPH 18.00
2 LAB Equipments Lot 24.00
3 ETP Lot 45.00
4 Generator DG Set - 500 KVA 2 Nos 65.00
5 Electric Panels, Trasformer, Monitoring Instruments Lot 6.50
6 Water Softener & RO 1 Nos 15.00
9 Electronic Weighing Bridge- 150 M T 1 Nos 3.00
TOTAL
10 Fire Extinguishers and hydrant, Fire Alarms, Water Springlers (E) 215.00

F GST / FRIEGHT ON ABOVE MACHINERY 258.80

1552.80
GRAND TOTAL OF MACHINERY (A+B+C+D+E)

Grand Total 1552.80

Comments: - Suppliers of the aforesaid machines are under finalization and quotations etc have been currently
obtained from Rana Machines India Pvt Ltd.(Haryana), Bansal Power & Machine Corporation
(Ramnagar) and Jakson Limited. All these suppliers are renowned and have successfully
commissioned various projects in the nearby area. Rates of the machinery are in alignment with
the rates in the market.

21.Utilities
Power & Fuel: The total connected load of the facility is estimated at about 650 KW. The power tariff has been
assumed at the proposed tariff of Rs 5.25 per unit. Borrower has also made arrangements for Solar Energy of
105KWA.

Labour Availability: Labour availability pertaining to this project has a lot of advantage, as the demand of
unskilled is very less to run this unit. And the required labor can be made available easily on cheaper rates as
Rudrapur is situated among clusters of small villages. The employee cost has been assessed based on the
organization structure prepared by the Firm which takes into account the managerial and the support staff
required for its operations,

Transport Facility: Transportation plays an important role in controlling the cost of production. Transportation facility is
readily available in the periphery and shall be a great advantage to the firm

Water Supply: The firm is situated at such a location that it has sufficient capacity to cater the demand in the processing
industry. Industrial water to the tune of 150000 Ltr/Day shall be required while Potable Water to the tune of 5000 Ltr/Day
 shall be used by the Firm. Water is available in abundance in the surroundings and proper arrangements to store water shall
be made as well.

Climate:-Kashipur (Rudrapur) is an important industrial town of Uttarakhand. It is home to a number of manufacturing

units. Availability of skilled and semi-skilled labour for these units is not an issue with a number of industrial training
centers being present in the vicinity.

22. Raw Material

India is the second largest producer of the fruits and vegetables in the world, contributing 10.23% and 14.45% of the total
world production of fruits and vegetables respectively. Uttarakhand has almost all the different agro-geo climatic zones
making it particularly conducive to commercial horticulture. Uttarakhand in particular is a state of abundance with high
levels of production and yield in fruits & vegetables. District Udham Singh Nagar in Kumaun region of Uttaranchal is
largest Pea producing area in whole of North India. Apart from Peas, other horticultural crop is Tomatoes, Carrots, Lady
fingers, Cabbage, Cauliflower etc. are also grown in abundant. Although this fresh commodity has, a ready market in
various mandies of the country, still lot of quantity is left unsold and gets spoilt; resulting becomes uneconomical to the
Grower/Farmers. Kashipur of Udham Singh Nagar is most ideal for processing all types of fruits and vegetables grown in
Uttaranchal and fresh Peas in particular, which may constitute 90% of total production of the plant. Kashipur where the
installation of the plant has been finalised is ideally located for tapping major vegetable i.e. Peas from nearby area
including Rudrapur, Kashipur and tomatoes and other vegetables from Haldwani and Ram Nagar respectively.

23. ANALYSIS OF PROFITABILITY

(Rs. in Lacs)
S.No. PARTICULARS 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27
Capacity Utilization 45% 50% 60% 70% 80% 90% 90% 95%
(Production in figures)
Raw Material,
Chemicals,
1 Components
and consumable
stores
a) Cost 758.91 1324.45 1631.59 1901.79 2171.99 2285.18 2437.62 2493.59
b) Consumables 6.80 13.51 16.21 18.91 21.62 22.81 24.32 24.91
Add Opening Stock of
Raw Material 0.00 78.51 51.96 62.35 72.75 83.14 87.72 93.53
Less Closing stock of
Raw material 78.51 51.96 62.35 72.75 83.14 87.72 93.53 95.82
A) Total Material
Cost 687.20 1364.51 1637.41 1910.31 2183.22 2303.41 2456.12 2516.21

2 Utilities
a) Power 10.24 45.50 54.60 63.70 72.80 81.90 81.90 86.45
 B) Total Utilities 10.24 45.50 54.60 63.70 72.80 81.90 81.90 86.45

Labour and Plant

3 Overheads
a) Wages 28.33 119.00 124.95 131.20 137.76 144.65 151.88 159.47

C) Total Labour 28.33 119.00 124.95 131.20 137.76 144.65 151.88 159.47

Repairs and
4 maintenance 5.22 21.92 23.02 24.17 25.38 26.65 27.98 29.38
D) Total Factory
Overheads 5.22 21.92 23.02 24.17 25.38 26.65 27.98 29.38

730.99 1550.93 1839.98 2129.38 2419.16 2556.61 2717.88 2791.51

Add Opening Stock of
WIP 0.00 0.69 1.86 2.23 2.60 2.98 3.35 3.35
Less Closing stock of
WIP 0.69 1.86 2.23 2.60 2.98 3.35 3.35 3.53
Estimated cost of
Production 730.30 1549.76 1839.61 2129.01 2418.78 2556.23 2717.88 2791.33

E) Administrative
5 Expenses
a) Administrative
Salaries 3.94 16.56 17.39 18.26 19.17 20.13 21.14 22.20
c) Professional fees 0.40 1.68 1.76 1.85 1.94 2.04 2.14 2.25
d) Light, Postage,
Office suppliers etc.
telephone office
suppliers etc. 9.66 40.56 42.59 44.72 46.96 49.31 51.78 54.37
F) Total
Administrative
Expenses 14.00 58.80 61.74 64.83 68.07 71.48 75.06 78.82

G) Total Sales
6 Expense 11.29 69.89 78.42 89.97 102.30 114.84 118.33 0.00

H) Total Cost of
Production 755.59 1678.45 1979.77 2283.81 2589.15 2742.55 2911.27 2870.15
Add Opening Stock of
Finished Goods 0.00 622.25 620.11 701.42 812.92 931.82 1052.72 1083.09
Less Closing stock of
Finished Goods 622.25 620.11 701.42 812.92 931.82 1052.72 1083.09 1136.04

I) Total cost of
Production
(E) + (F) + (G) +
(H) 133.34 1680.59 1898.47 2172.31 2470.25 2621.65 2880.90 2817.20
J) Sales (Net of
Excise ) 313.74 2067.05 2338.47 2709.71 3106.28 3508.87 3609.46 3786.77
K) Gross Profit
before interest (J)-(I) 180.40 386.46 439.99 537.40 636.04 887.22 728.55 969.57
L) Financial
Expenses
a) Interest on term
loans 17.34 65.91 58.28 47.18 34.69 19.89 5.20 0.00
b) Interest on
borrowing for working
 capital 16.19 48.56 48.56 48.56 48.56 48.56 48.56 48.56
Total Financial
Expenses (L) 33.53 114.47 106.84 95.74 83.25 68.45 53.77 48.56
M) Depreciation 103.00 206.00 206.00 206.00 206.00 206.00 206.00 206.00
N) Operating Profits
(K-L-M) 43.87 65.99 127.15 235.66 346.79 612.77 468.79 715.01
O) Provisions for
taxation 0.00 0.00 19.53 97.11 118.64 205.05 167.52 276.30
P) Profit after tax 43.87 65.99 107.63 138.55 228.15 407.72 301.27 438.71
R) Retained Profit (P-
Q) 43.87 65.99 107.63 138.55 228.15 407.72 301.27 438.71
Add : Depreciation 103.00 206.00 206.00 206.00 206.00 206.00 206.00 206.00
Net Cash accruals 146.87 271.99 313.63 344.55 434.15 613.72 507.27 644.71

Capacity utilization

YEAR 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27

CAPACITY
UTILIZATION 45% 50% 60% 70% 80% 90% 90% 95%

Comments: - a. Sales has been worked out as under:-

Sale
Product Price
Peas 41500.00
Cut/ Frozen
Vegetables 21550.00
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27

CAPACITY
UTILIZATION 45% 50% 60% 70% 80% 90% 90% 95%
Peas
Quantity Manufactured 2520.00 2800.00 3360.00 3920.00 4480.00 5040.00 5040.00 5320.00
Pea Grains
Manufactured (MT) 2520.00 2800.00 3360.00 3920.00 4480.00 5040.00 5040.00 5320.00
Other Cut/ Frozen
Vegetables
Quantity Manufactured 0.00 4000.00 4800.00 5600.00 6400.00 7200.00 7200.00 7600.00
Cut Vegetables
Manufactured (Kgs) 0.00 4000.00 4800.00 5600.00 6400.00 7200.00 7200.00 7600.00
SALES:

Peas
Production 2520.00 2800.00 3360.00 3920.00 4480.00 5040.00 5040.00 5320.00
Add: Opening Stock 0.00 1764.00 1141.00 1125.00 1261.00 1435.00 1619.00 1665.00
2520.00 4564.00 4501.00 5045.00 5741.00 6475.00 6659.00 6985.00
Less: Closing Stock 1764.00 1141.00 1125.00 1261.00 1435.00 1619.00 1665.00 1746.00
Quantity to be Sold 756.00 3423.00 3376.00 3784.00 4306.00 4856.00 4994.00 5239.00
Sales Price 41500.00 41500.00 41500.00 41500.00 41500.00 41500.00 41500.00 41500.00
Sales Value 313.74 1420.55 1401.04 1570.36 1786.99 2015.24 2072.51 2174.19

Other Cut/ Frozen

Vegetables
Production 0.00 4000.00 4800.00 5600.00 6400.00 7200.00 7200.00 7600.00
Add: Opening Stock 0.00 0.00 1000.00 1450.00 1763.00 2041.00 2310.00 2378.00
0.00 4000.00 5800.00 7050.00 8163.00 9241.00 9510.00 9978.00
Less: Closing Stock 0.00 1000.00 1450.00 1763.00 2041.00 2310.00 2378.00 2495.00
Quantity to be Sold 0.00 3000.00 4350.00 5287.00 6122.00 6931.00 7132.00 7483.00
Sales Price 21550.00 21550.00 21550.00 21550.00 21550.00 21550.00 21550.00 21550.00
Sales Value 0.00 646.50 937.43 1139.35 1319.29 1493.63 1536.95 1612.59

Storage Rent (CA /

MA) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL SALES
VALUE 313.74 2067.05 2338.47 2709.71 3106.28 3508.87 3609.46 3786.77

WORK IN
PROGRESS

One Day Production 7.88 21.25 25.50 29.75 34.00 38.25 38.25 40.38
Purcase Price of
Material 8750.00 8750.00 8750.00 8750.00 8750.00 8750.00 8750.00 8750.00
WIP (One Day) 0.69 1.86 2.23 2.60 2.98 3.35 3.35 3.53

FINISHED GOODS
(QUANTITY)

Peas (MT) 1764.00 1141.00 1125.00 1261.00 1435.00 1619.00 1665.00 1746.00
Cut/ Frozen
Vegetables (MT) 0.00 1000.00 1450.00 1763.00 2041.00 2310.00 2378.00 2495.00

FINISHED GOODS
(VALUE)

Peas 622.25 426.16 420.19 470.98 535.97 604.70 621.88 652.13

Cut/ Frozen
Vegetables 0.00 193.95 281.23 341.93 395.85 448.02 461.21 483.91
TOTAL 622.25 620.11 701.42 812.92 931.82 1052.72 1083.09 1136.04
Sales, is commensurate to the size of the project and is easily achievable as well.

b. Administrative Expenses have been considered as under:-

Total
Amount
    Month Amount
(Rs.)
(Rs.)
A) PROFESSIONAL FEES
Auditors Remuneration 100000.00
Legal Expenses @ 5000/- p.m. 12.00 5000.00 60000.00

B) Lighting Expenses @. Rs. 10000/- P.M. 12.00 10000.00 120000.00

Postage @.Rs.5000/- P.M. 12.00 5000.00 60000.00
Telephone Rs.5000/-pm 12.00 12000.00 144000.00
Printing & Stationery @ Rs.5000/- P.M. 12.00 5000.00 60000.00
Staff Welfare @ Rs.3500/- P.M. 12.00 3500.00 42000.00
Traveling & Conveyance @ Rs.7500/-
P.M. 12.00 7500.00 90000.00
Vehicle running Expenses 12.00 20000.00 240000.00
Misc. Expenses 60000.00
Total (D) 976000.00

Grand Total 976000.00

c. Salary is considered as under:-

S.No. PARTICULARS 1 2 3 4 5 6 7

1 Salary Paid to Sales Staff 1.88 7.88 8.27 8.68 9.11 9.57 10.05
Marketing/Brand Building
2 expenese 6.27 41.34 46.77 54.19 62.13 67.14 71.43
3 Insurance 3.14 20.67 23.38 27.10 31.06 33.57 35.72

Total 11.29 69.89 78.42 89.97 102.30 110.28 117.20

d. Repair & Maintenance at 1% on the WDV has been considered.

1.00% on cost of Building 4.55

1.00% on cost of Plant and Machinery 16.31

Total 20.86

d. Depreciation has been considered at rates prescribed under Income Tax Act 1961.
The expenditure under various heads is reasonable and keeping in mind the nature of business, the estimates are
justified.

24. DSCR

A. DSCR
Particulars 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26
Capacity utilization              
Sales 313.74 2067.05 2338.47 2709.71 3106.28 3508.87 3609.46
Net Profit after Tax 43.87 65.99 107.63 138.55 228.15 407.72 301.27

Depreciation 103.00 206.00 206.00 206.00 206.00 206.00 206.00

Cash Accruals 146.87 271.99 307.57 338.49 434.15 613.72 507.27
Interest 17.34 65.91 58.28 47.18 34.69 19.89 5.20
TOTAL 164.22 337.89 371.90 391.73 468.84 633.61 512.47
TL repayments 0.00 60.00 120.00 120.00 160.00 160.00 115.00
Interest 17.34 65.91 58.28 47.18 34.69 19.89 5.20
TOTAL 17.34 125.91 178.28 167.18 194.69 179.36 120.20
Gross DSCR 9.47 2.68 2.09 2.34 2.41 3.52 4.26
Average Gross
DSCR 2.88

25. PROJECTED BALANCE SHEET

Amt in
Lacs
2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27
FIXED ASSETS
Cost of Assets 2085.93 2085.93 2085.93 2085.93 2085.93 2085.93 2085.93 2085.93
Less : Depreciation 103.00 309.00 515.00 721.00 927.00 1133.00 1339.00 1545.00
Net Block 1982.93 1776.93 1570.93 1364.93 1158.93 952.93 746.93 540.93

CURRENT
ASSETS
Closing Stocks 701.45 673.93 766.00 888.27 1017.94 1143.78 1179.97 1235.39
Sundry Debtors 248.38 602.89 682.05 790.33 906.00 1169.62 1503.94 2208.95
Cash in hand at
Bank 131.88 29.11 30.32 29.95 64.38 131.00 155.94 41.38
Security Deposit 8.23 8.23 8.23 8.23 8.23 8.23 8.23 8.23

Total 3072.85 3091.09 3057.52 3081.70 3155.47 3405.55 3595.00 4034.87

LIABILITIES
Capital Balance 551.04 551.04 551.04 551.04 551.04 551.04 551.04 551.04
Reserve and
Surplus 43.87 109.86 217.49 356.04 584.18 991.90 1293.17 1731.88
Grant 1000.00 1000.00 1000.00 1000.00 1000.00 1000.00 1000.00 1000.00

SECURED
Working Capital 700.00 700.00 700.00 700.00 700.00 700.00 700.00 700.00
Term Loan 675.00 555.00 435.00 275.00 115.00 0.00 0.00 0.00
VCA from SCAF 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

UNSECURED
LOANS 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

CURRENT
LIABILITIES
Sundry Creditors 42.94 55.19 33.99 39.62 45.25 47.61 50.78 51.95
Term Loan
Instalment (1 Year) 60.00 120.00 120.00 160.00 160.00 115.00 0.00 0.00

Total 3072.85 3091.08 3057.51 3081.69 3155.47 3405.55 3594.99 4034.86

26. RATIO ANALYSIS

B. Debt Equity Ratio

Equity 1594.91 1660.90 1768.52 1907.07 2135.22 2542.94 2844.21 3282.91

Debt 615.00 555.00 395.00 275.00 160.00 115.00 0.00 0.00
DE Ratio 0.39 0.33 0.22 0.14 0.07 0.05 0.00 0.00

o/s Liabilities 1477.94 1430.19 1288.99 1174.62 1020.25 862.61 750.78 751.95
0.93 0.86 0.73 0.62 0.48 0.34 0.26 0.23

C. IRR
Year Cash Cash inflow of each year ( B ) Net DISCOUNTED RATE
outflow Cash
of each Reciepts
year(A)
 PAT DEP INTEREST Total 25.00 30.00 35.00
- - -
0 2094.15 -2094.15 2094.15 2094.15 2094.15
1st -1000.00 43.87 103.00 33.53 180.40 1180.40 1049.25 852.28 849.21
2nd 0.00 65.99 206.00 114.47 386.46 386.46 305.35 201.47 200.02
3rd 0.00 107.63 206.00 106.84 420.46 420.46 295.30 158.26 156.56
4th 0.00 138.55 206.00 95.74 440.29 440.29 274.87 119.66 117.94
5th 0.00 228.15 206.00 83.25 517.40 517.40 287.12 101.53 99.71
6th 0.00 407.72 206.00 68.45 682.17 682.17 336.49 96.65 94.58
7th 0.00 301.27 206.00 53.77 561.03 561.03 245.99 57.39 55.96
8th 0.00 301.27 206.00 48.56 555.83 555.83 216.63 41.05 39.89

4675.82 941.85 -435.87 -445.28

24.79%

COMMENTS: Debt-Equity Ratio and NPM are satisfactory.

27. WORKING CAPITAL

The major revenue stream for the unit will be from sale of fresh and stored products. Sales will be made against
cash payments or a maximum credit period of one week. Thus the major source of working capital requirements
is raw material which will be stored in the facilities being created under the project.

The raw materials will be procured during the harvest season. Thus frozen peas will be stored for about 120
days, frozen carrots for 30 days, potato for 60 days, baby corns for 120 days, capsicum for 60 days, and
American Sweet Corn for 30 days. The firm’s working capital requirements for the first year are calculated as
described below:

Item Require- Bank Amount Amount Margin

ment Margin of bank money
  available finance required
             
     
i) Indigenous raw      
material      
components 2.00 0.75 78.51 58.88 19.63
(in Months)      
      
ii) Work in      
Progress 1.00 0.75 0.69 0.52 0.17
(in Days)      
     
iii) Stock of finished      
goods 3.00 0.75 622.25 466.69 155.56
(in Months)      
     
Outstanding
iv) debtors 3.50 0.75 248.38 186.28 62.10
(in months)      
     
    949.83 712.37 237.46
Less: Trade
v) credits      
available on raw      
materials and      
  consumable 0.33 0.25 42.94 10.73 32.21
     
Net working
capital      
required     906.89 700.00 206.89
             
Intrest On Bank      
Borrowings   9.25% 16.19

% Margin 22.81

28. SWOT ANALYSIS

Strength

1. The main product of the Firm is fruits and other vegetables. The plant is situated in agriculture belt, where there is no
dearth of fruits and other vegetables during the season. The various fruits which the Firm intends to process are also
produced in abundance in Uttarakhand.

2. The Project is planned by promoters in the heart of cereal and vegetables growing area of Uttarakahnd - Kashipur in
Udham Singh district - with access to Tarai tropical area 60 KM radius for all the year round availability of raw material.
The project site selected is declared as Industrial belt by Government of Uttarakhand.

Weakness

1. Government grants and venture capital assistance forms the major part of the means of finance of the project. If these
grants and assistances are not sanctioned by the government, then interest burden upon the Firm shall increase.
2. The party does not have its own brand name.

Opportunities

There are not many players in India in this field. There is change in the life style and taste pattern of the people now a
day; they want to eat various types of vegetables throughout the year. The demand of frozen vegetables has also increased
due to increase in business of hotels, restaurants and catering services.

Threat

1. Government policies are being changed frequently and are complicated.

2. Lack of research facilities may hamper modernization of the plant.

Indian brands have yet to acquire an image in the international markets because of poor global marketing.

29. Observations

1. Interest: Interest would be charged to the Project as per Bank’s Term as given in Loan Sanction. In case of
any change in the rate of interest the working may be changed accordingly.

2. The project is subsidy driven and hence it must be assured that the subsidy amount is received within the
stipulated time frame. In case of any delay, the promoter must infuse the required capital so that the project
is not delayed.

3. It is advisable to Bank to obtain all the NOC’s and approvals as listed above in the report.

30. Conclusion

Based upon the information, analysis, explanations and assumptions and subject to our observations in the
foregoing paragraphs, we are of the opinion that the project is technically feasible and economically viable.
For Ravi Kumar Srivastava & Associates

Chartered Accountants

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