Chauras Mills

8/12/2019 Chauras Mills

1/53

Type % of total production kgs

1

2

50.5

1

1

2

Type Amount in kgs SKUs

1

2

5

wholesale

0.5

1

1

2

Product Mix

Jowar 450

10%

Weekely production

Wheat flour 3600

Rice 450

Rice

Wheat flour

Jowar

80%

10%


2/53

Distribution in SKUs Actual amount

10% 240

30% 720

60% 1440

1200 1200

40% 180

60% 270

50% 225

50% 225


3/53

Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Year 1 Year 2

Market 187200 259584 329472 23400 32448 41184 23400 32448

Wheat Jowar Rice


4/53

Year 3

41184


5/53

Particulars

Furniture & fixtures

Chairs

Stools

Tables and cabinets

Flooring and other costs

Electrical Fittings

Vehicles

Tata Ace

Machinery

Milling Machine

Sieving Machine

Packing Machine

Milling Machine (Purchased in year 3)

Other Equipments

Personal Computer

Weighing Machine

Total fixed assets

FIXED ASSETS


6/53


7/53

Funiture & fixtures 186,800 18%Vehicles 250,000 40%

Machinery 157,000 14%

Machinary (Purchased in year 3) 49,500 14%

Other Equipments 20,000 33%

Total Depreciation

Preliminary expenses:

Registration 30,000

Electrical installation 10,000

Telephone & connection 2,000Total preliminary expenses: 42,000

TOTAL

DEPRE

Particulars Asset value

Depreciation

%age


8/53

Depreciation

Depreciated asset

value Depreciation

Depreciated

asset value Depreciation

33,624 153,176 27,572 125,604 22,60937,360 212,640 85,056 127,584 51,034

10,990 146,010 20,441 125,569 17,580

49,500 6,930

3,333 16,667 5,555 11,112 3,704

85,307 138,624 101,856

85,307 138,624 101,856

IATION SCHEDULE (COMPANIES ACT)

YeaYear 1 Year 2


9/53

Depreciated

asset value

102,99676,550

107,989

42,570

7,408

r 3


10/53


11/53

Particulars

grinding machine 1 50 kg/hr.

grinding machine 2 50 kg/hr

Sieving Machine 50 kg/hr.Packer

Grinding Machine3 50 kg/hr.

TOTAL (KW)

Price of electricity (Rs./KW-h)

Annual electricity cost for prodcution

Electricity consumed for office (KW)

Consumption time for office (hrs/day)Total office power consumed (KW-h/day)

Price of electricity (Rs./KW-h)

Annual electricity cost for office (for first year)

ELECTRICITY CONSUMPTION OF


12/53

Year 1 (KW) Year 2 (KW) Year 3 (KW)

7.46 7.46 7.46

7.46 7.46 7.46

0.746 0.746 0.7460.746 0.746 0.746

0 0 7.46

16 16 24

7 7 7

286,750 394,282 573,501

1 1 1

9 12 129 12 12

7 7 7

19,656 26,208 26,208

MACHINES


13/53

Particulars Year 1 Year 2 Year 3

Product 1:

Quantity produced(kg) 234,000 324,480 411,840

Total installed capacity (kg) 372,000 372,000 558,000Production capacity (%) 62.9% 87.2% 73.8%

Machine hours 8 11 11

Office hours 9 12 12

Working days/month 26 26 26

Number of labour 5 6 6

ELECTRICITY CONSUMPTION HOURS

PRODUCTION CAPACITY


14/53

10 11 12

310000 341000 372000272800 297600


15/53

Particulars

Miscellaneous expenses

Director's salary

Office Expenses

Audit Expenses

Packaging

Production Expense (electricity)

Licence Expense

insurance Expenses

Rent

diesel

Maintenance

Employees' salary

Packing Staff

Machine Staff

Driver

Accountant

Supervisor(Director)

Sales & marketing expenses

Sales mens salary

Advertisement

Pamplets

Flex

Radio Advertisement

TOTAL

Fixed cost (recurring exp.)

S

General Expenses


16/53

Semi variable OH


17/53

% of Sales Year1 Year2

0.30% 25,759 37,535

2*25000*12 (10%, 12% hike) 600,000 792,000

26,856 33,408

Increases on turnover 15,000 20,000

plastic bags+stickers 425,412 589,905

286,750 394,282

50000 50,000

3000 13,666 10,570

40000*12 480,000 528,000

25,740 28,314

30,000 33,000

5*2000*12 (10%, 12%hike) 120,000 132,000

2*8000*12 (10%, 12%hike) 196,000 321,200

1*6000*12 (10%, 12%hike) 72,000 79,200

1*15,000*12(10%,12%) 1,80,000 198,000

2*25000*12 (10%, 12%hike) 600,000 660,000

2*8000*12 (10%, 12%hike) 196,000 215,600

0 -

6000*12 (10%, 12% hike) 72,000 79,200

300*30 15,000 7,500

30,000 10,000

3,280,184 4,169,714

8.47

12.66947042

12.66947042

LLING, GENERAL & ADMINISTRATIVE (SGA) EXPENSES


18/53

1 year 2 nd year 3 rd year

2,200,522 2,666,478 2,892,795

9.40 8.22 7.02


19/53

Year3

51,080

806,400

33,408

25,000 1,244,778 1,583,130

748,725

573,501

8,787

591,360

31,712

36,000

147,840

478,016

88,704

221,760

739,200

241,472

-

88,704

4,500

7,500

4,923,669


20/53


21/53

1,998,074


22/53

Assets:Raw materials stock:

Wheat (Lokwan)

Rice(Kolam)

Jowar (Gawraan)

Total

Work in Progress:

Finished goods

Debtors:

Total current assets

Liabilities:

Creditors:

Total current liabilities

Working Capital

Add: 10% contingencies

Total Working Capital requirement70% margins

WORKING CAP

Particulars


23/53

Raw material

Wheat

Rice

Jowar

Wheat

RiceJowar

Wheat

Rice

Jowar

Year

1

2

3

Year

1

23

Year

Type

Working

Working Note


24/53

Wheat(wholesale)

Wheat(retail) 1Kg

Wheat (retail) 2 Kg

Wheat(retail) 5Kg

Rice 0.5 Kg

Rice 1 KgJowar 1 Kg

Jowar 2 Kg

Total

Rice for second year1 kg

500gm

Jowar second year

1kg

2kg


25/53

Year1 Year2 Year3

Amount Amount Amount

0.0032 4,817 7,347 10,257

0.0032 1,207 1,839 2,567

0.0032 1,006 1,533 2,139

7,030 10,719 14,963

0.0096 35,434 50,598 68,410

0.0032 2,144 2,496 2,939

0.0962 825,617 1,203,052 1,637,175

870,224 1,266,865 1,723,488

0.0224 98,417 150,072 209,487

771,807 1,052,980 1,427,688

77,181 105,298 142,769

848,988 1,158,278 1,570,457594,292 810,795 1,099,320

ITAL CALCULATION

Holding

duration (days)


26/53

Year Weight(Kg) Rate(Rs) Cost (Rs)

1 100,202 15 1,503,030

1 12,550 30 376,508

1 12,550 25 313,756

2 138,927 16.5 2,292,303

2 17,391 33 573,9012 17,391 27.5 478,251

3 176,318 18.15 3,200,163

3 22,065 36.3 800,948

3 22,065 30.25 667,457

Raw Material Labour Over Heads Supervisor Total

2193293.7500 196,000 995822.1665 300,000 3685115.917

3344454.0250 321,200 1266503.801 330,000 5262157.826

4668568.1075 478,016 1598459.123 369,600 7114643.231

Packing Labour Supervisor Over Heads Total

120000.0000 300,000 248955.5416 668,956

132000.0000 330,000 316625.9503 778,626147840.0000 369,600 399614.7809 917,055

Kgs Rate Cost Kgs Rate

Working Notes For Debtors

Year1

Notes For FG

For Raw Material

orking Notes For WIP

Year 2


27/53

63648 33 2,100,384 88258.56 35

12355.2 35 432,432 17132.544 36

37065.6 68 1,260,230 51397.632 70

74131.2 168 2,490,808 102795.264 171

11700 27 631,800 16224 29

11700 50 585,000 16224 559360 47 439,920 12979.2 52

14040 92 645,840 19468.8 101

234000 8,586,415 324,480

4992.0000 1,664 03328

5940.0000 1,584

792

624.0000 Rice for 3rd year 792 Wheat374.4000 1 kg 475 5kg

249.6000 500gm 317 2kg

624.0000 Jowar 3 year 792 1kg

312.0000 1kg 396

312.0000 2kg 396

234000.0000 324480

308880.0000

358800.0000


28/53


29/53

56601.1

56238.3

Cost Kgs Rate Cost

Year 3


30/53

3,089,050 112020.48 38 4,256,778

616,772 21745.152 38 826,316

1,798,917 65235.456 72 2,348,476

3,515,598 130470.912 175 4,566,482

940,992 20592 34 1,400,256

892,320 20592 62 1,276,704674,918 16473.6 58 955,469

983,174 24710.4 113 1,396,138

12,511,741 411,840 17,026,619

wholesale retail

2112 42242534.4

1267.2

422.4


31/53

Costing-

Grain

Year 1 2 3 1

Production(Electricity) 229400.3712 315425.5104 458800.7424 28675.05

office expenses 21484.80 26726.40 26726.40 2685.60

diesel 20592.00 22651.20 25369.34 2574.00

Labour 310400.00 425920.00 571648.00 38800.00

Maintenance 24000.00 26400.00 28800.00 3000.00

Total Variable cost 605877.17 817123.11 1111344.49 75734.65

/unit VC 3.24 3.15 3.37 3.24

Semi-variable overhea 9.40 8.22 7.02 9.40

12.64 11.37 10.40 12.64

Raw material 15 16.5 18.15 25

Total Production Cost 27.64 27.87 28.55 37.64

Package cost-

SKU Year 1 Year 2 Year 3 Year 1

1 kg 30.64 30.87 31.55 40.64

2 kg 60.28 60.73 62.09 80.28

5 kg 148.20 149.33 152.74 NA

0.5kg NA NA NA NA

Pricing-

Year 1 Year 2 Year 3 Year 1

1 kg 35 36 38 47

2 kg 68 70 72 92

5 kg 168 171 175 NA

0.5kg NA NA NA NA

Wholesale 33 35 38 NA

Grain

Packaging Cost Year 1 Year 2 Year 3 Year 1

1 kg 37065.6 51398 65235 42120

2 kg 92664 128494 163089 23400

5 kg 148262.4 205591 2609420.5 kg

277992 385482 489266 65520

Total packaging Cost 425412 589904.64 748725.12

Wheat

Wheat

Wheat

Wheat


32/53

2 3 1 2 3

39428.19 57350.09 28675.05 39428.19 57350.09

3340.80 3340.80 2685.60 3340.80 3340.80 187200

2831.40 3171.17 2574.00 2831.40 3171.17

53240.00 71456.00 38800.00 53240.00 71456.00

3300.00 3600.00 3000.00 3300.00 3600.00

102140.39 138918.06 75734.65 102140.39 138918.06

3.15 3.37 3.24 3.15 3.37

8.22 7.02 9.40 8.22 7.02

11.37 10.40 12.64 11.37 10.40

27.5 30.25 30 33 36.3

38.87 40.65 42.64 44.37 46.70 capacity,breaks,packing

Year 2 Year 3 Year 1 Year 2 Year 3

41.87 43.65 45.64 47.37 49.70

82.73 86.29 NA NA NA

NA NA NA NA NA

NA NA 23.32 24.18 25.35


52 58 50 55 62

101 113 NA NA NA

NA NA NA NA NA

NA NA 27 29 34

NA NA NA NA NA


58406.4 74131.2 35100 48672 61776

32448 41184

46800 64896 82368

90854.4 115315.2 81900 113568 144144

Jowar Rice

Jowar Rice

Jowar Rice

Jowar Rice


33/53

23.872

74480.64

521364.5

cooling timevery 4 Hr 30 minutes to 45 mins cooling time

packaging/unit pack

1 kg 3

2 kg 5

5 kg 10

0.5kg 2


34/53

Particulars Year 1

Sales (kg) 234,000

Total Revenue (Rs.) 8,586,415

Fixed cost 683,300

Variable cost 7,281,516

Total cost 7,964,816

PROJECTED SALES VOLUM


35/53

Year 2 Year 3

324,480 411,840

12,511,741 17,026,619

528,493 439,369

10,308,276 13,544,201

10,836,769 13,983,569

E


36/53

Year 1 2 3

Particulars total total total

R.M. 4386588 6688908 9337136

Labour 388,000 532,400 714,560

Electricity 306406.5 420489.9 599708.9Overheads 2,200,522 2,666,478 2,892,795

Total Variable Cost 7281516 10308276 13544201

S.P. 8586415 12511741 17026619

Contribution 1304899 2203465 3482418

Fixed Cost 633,800 528493 439368.8

BEP(period) 11.0621 10.39354 9.855323

Marginal costing


37/53

Particulars Amount

Total equity (Rs.) 800,000

Face value of each share (Rs.) 10

Total shares 80,000Number of promoters 4

Shares per promoter 20,000

888496

254696

SHAREHOLDING PATTERN


38/53


39/53

Particulars Cost Amount WACC

Equity 18% 800,000 17.15%

Short term loan 16% 594,292

Year Depreciation CFAT + Dep.

0 -725,300 -725,300

1 140,967 85,307 226,274

2 417,741 138,624 556,365

3 976,647 101,856 1,078,503

Present value of cash inflows

WACC

Profitability Index

NPV

Discounted pay-back period 2 years, 2 mon

NET PRESENT VALUE (NPV


40/53

DF (1/(1+WACC)) PVCF ccf

1.00 -725,300

0.85 193,153 193,153

0.73 405,409 598,562

0.62 670,844 1,269,407

1,269,407

544,107

1.75

hs

) CALCULATION


41/53

Year 1 2

Loan Amt 594,292 810,795

Interest Rate 16.00% 16.00%

Interest 95,087 129,727

Working capital Loan


42/53

3

1,099,320

16.00%

175,891


43/53

Particulars

Income:Sales 8,586,415

less: excise duty (6%) 515,185

Net sales 8,071,230

Expenditure:

Raw materials 4,386,588

Electricity 286,750

Wages 388,000

Cost of production 5,061,338

Operating profit 3,009,892

Insurance (2% of total project cost) 13,666

SG&A 2,605,433

Depreciation & amortisation 85,307

Cost of sales 2,704,406

EBIT 305,486

less: Interest 95,087

EBT 210,399

less: taxes (@33%) 69,432

EAT 140,967

Dividend 40,000

DDT (@15%) 6,000

Transfer to reserves & surplus 94,967

Year 1

PROJECTED PROFIT & LOSS


44/53

12,511,741 17,026,619

750,704 1,021,597

11,761,037 16,005,022

6,688,908 9,337,136

394,282 573,501

448,800 502,650

7,531,990 10,413,287

4,229,047 5,591,734

10,570 8,787

3,326,632 3,847,518

138,624 101,856

3,475,826 3,958,161

753,221 1,633,574

129,727 175,891

623,494 1,457,682

205,753 481,035

417,741 976,647

320,000 480,000

48,000 72,000

49,741 424,647

Year 2 Year 3

TATEMENT


45/53

Net profit before tax 210,399

Adjustment for:

Depreciation 85,307

Interest 95,087

Operating profit before working capital

changes

Working capital changes:

Trade receivables(-) 825,617

Inventories(-) 77,464

Trade payables(+) 98,417

Cash balance (-) 18,744

Cash generated from operating activities:

Interest paid(-)

Direct tax paid(-) 69,432

Net cash flow from operating activities

Cash flow from investing activities:

Purchase of fixed assets(-) 633,800

Sale of fixed assets (+) -

Preliminary expenses (-) 42,000

Interest Received 3,000

Net cash flow from investing activities

Cash flow from financing activites:

Debt 594,292Equity 800,000

Loan Repayment(-)

Interest(-) 95,087

Dividend paid (-) 40,000

Net cash flow from financing activities

PROJ

Year


46/53

Total

Cash from previous year 20,000

Total


47/53

623,494 1,457,682

138,624 101,856

129,727 175,891

390,793 891,845

377,435 434,123

18,273 35,726

51,655 59,415

81,673 30,513

-432,615 466,118

205,753 481,035

-502,047 260,365

- 449,500

- -

4,000 5,000

-672,800 4,000

216,503 288,525- -

129,727 175,891

320,000 480,000

1,259,205 -233,224

CTED CASH FLOW STATEMENT

Year 2 Ye


48/53

84,358 31,141

104,358 135,499

104,358 135,499


49/53

1,735,429

1,294,482

813,447

-444,500

-367,366

ar 3


50/53


51/53

PARTICULARS

A)Equity and liabilities

1.Shareholders' funds

Share capital 800,000Reserves & surplus 94,967

Total 894,967

2.Current liabilities

Other Current liabilities: 98,417

Short term borrowings(cash credit loan) 485,933

584,350

TOTAL 1,479,317

B) Assets

1.Non current assets

Fixed assets 633,800

Less: depreciation 85,307

Net block of fixed assets 548,493

Non current Investments

2.Current assets:

Cash balance 40,393

Inventories 64,815

Trade recievables 825,617

Total current assets 930,824

TOTAL 1,479,317

-0

PROJECTED BALA

Year 1


52/53

800,000 800,000144,708 569,355

944,708 1,369,355

150,072 209,487

703,783 945,136

853,854 1,154,623

1,798,563 2,523,978

528,493 439,369

138,624 101,856

389,869 337,513

400,000

109,905 17,826

95,738 131,464

1,203,052 1,637,175

1,408,695 1,786,465

1,798,563 2,523,978

-1 -0

CE SHEET

Year 2 Year 3


53/53

Ratios Year 1 Year 2 Year 3

Interest coverage ratio 3.21 5.81 9.29

Current ratio 1.59 1.65 1.55

Quick ratio 1.48 1.54 1.43Inventory turnover 78.09 78.67 79.21

Debtors turnover 10.40 10.40 10.40

Working capital turnover 9.51 10.15 10.19

Fixed assets turnover 14.72 30.17 47.42

Operating profit margin 37.29% 35.96% 34.94%

EBIT margin 3.78% 6.40% 10.21%

Net profit margin 1.75% 3.55% 6.10%

Return on equity 17.62% 52.22% 122.08%Return on net worth 15.75% 44.22% 71.32%

FUNDAMENTALS

Chauras Mills

Documents

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