Spice Grinding and Packaging

PROJECT REPORT
ON
SPICE GRINDING AND PACKAGING
2017
North Eastern Development Finance Corporation Ltd. an ISO 9001:2008 company
Project Report on Spice Grinding and Packaging
LIST OF CHAPTERS
SL. NO. ITEMS PAGE NO.
1. THE PROJECT AT A GLANCE 01
2. INTRODUCTION 02
3. PROJECT DESCRIPTION 03
4. MARKET PROSPECT 04
5. TECHNOLOGICAL PROCESS 05
6. QUALITY CONTROL AND STANDARDS 06
7. CONSUMABLES, POWER AND UTILITY 07
8. INSTALLED CAPACITY 08
9. BASIS AND PRESUMPTIONS 09
10. PROJECT COST ESTIMATES AND 10

MEANS OF FINANCE
11. ECONOMIC VIABILITY AND FINANCIAL 12

ANALYSIS
LIST OF ANNEXURES
A. ESTIMATED COST OF THE PROJECT 14
B. PROPOSED MEANS OF FINANCE 15
C. WORKING CAPITAL ESTIMATES 16
D COST AND PROFITABILITY ESTIMATES 17
E. PROJECTED BALANCE SHEET 18
F. PROJECTED CASH FLOW STATEMENT 19
G. DEBT-SERVICE COVERAGE RATIO 20
H. BREAK-EVEN ANALYSIS 21
I. INTERNAL RATE OF RETURN 22
K. TERM LOAN REPAYMENT SCHEDULE 23

LIST OF APPENDICES
A1. COST OF LAND & BUILDING 24
A2. COST OF PLANT & MACHINERY 25
A3. MISC. FIXED ASSETS 26
A4. PRELIMINARY & PRE-OPERATIVE 27

EXPENSES
C1. MANPOWER REQUIREMENT & COST 28
C2. POWER & UTILITY 29
D1. REPAIR AND MAINTENANCE COST 30
D2. ESTIMATES OF INCOME 31
D3. INTEREST ON WORKING CAPITAL 32
D4. DEPRECIATION SCHEDULE 33

CHAPTER-1
THE PROJECT AT A GLANCE
Sl. No. Particulars Description

A. Project Description
1. Proposed Project Spice Grinding and Packaging Unit
2. Capacity of the Plant/Unit  Turmeric Powder: 25 Ton
(At 100% Capacity)  Chili Powder: 15 Ton
 Pepper Powder: 15 Ton
 Jeera Powder: 10 Ton
 Dhania Powder: 10 Ton
Total : 75 Ton
3. Year-wise Capacity Utilisation Yr 01 Yr 02 Yr 03 Yr 04 Yr 05
50% 60% 70% 70% 70%
B. Project Cost
1. Land Own Land/ On Lease
2. Civil Works & Buildings Rs. 5,00,000.00
3. Plant & Machinery Rs. 6,22,000.00
4. Fixed Assets Rs. 2,09,000.00
5. Pre-operative Expenses Rs. 2,11,000.00
6. Contingency & Escalation Rs. 67,000.00
7. Margin for Working Capital Rs. 2,36,000.00
Total Rs. 18,45,000.00
C. Means of Finance
1. Equity @ 40% Rs. 7,38,000.00
2. Loan from Bank @ 60% Rs. 11,07,000.00
Total Rs. 18,45,000.00
D. Financial Benchmarks
1. Break Even Point(at Operating 49.22%
Capacity on Third Year)
2. Average DSCR 1: 2.30
3. Internal Rate of Return 18.00%
E. Basic Assumptions
1. Power Rate Per Unit Rs. 6.00/- Per Unit
2. Interest Rate Term Loan: 8%; WC Loan: 12%
3. Repayment Period 6 Years including moratorium period of 1 Year.
Page | 1
CHAPTER-2
INTRODUCTION
2.1. Spices play an important role in enhancing the flavour and taste of the processed
foods. On account of their ability to impart flavour and aroma, spices have been used
in the preparation of a wide variety of processed foods. Spices are required in
preparing appetising and digested beverages and confectionary, soup powders, sauces,
instant curries, canned meat and poultry products etc. Spices are also used in the
medicines because of their carminative stimulating and digestive properties.
2.2. Ground spices are extensively used in all types of curried dishes in India and abroad.
Although spices are traded chiefly in an unprocessed form, a small yet significant
quantity enters international trade as spice powders. Curry powder is the foremost of
those blends or mixes and sometimes consists of 20 or more spices designed to add
the characteristic flavour of an Indian curry, which is appreciated all over the world.
Apart from the overseas market, processed curry powder is becoming popular in the
domestic market also. Hence the demand for unadulterated spices and curry powder in
attractive packaging is fast emerging.
2.3. Demand for processed spices is directly linked with its consumption in food
processing industry and this is set to grow in India in coming years with growth of
population and fast changing food habits as well as increase in purchasing power of
the middle and upper class households in India.
2.4. Considering the potential market opportunity of such units, the present detail project
report has been developed. The main objective of such initiative is to productively
utilize the abundantly available resources of the local area and to enable uninterrupted
supply of the products to market throughout the year.
2.6.1. A detailed analysis has been carried out considering mainly the aspects below:
2.6.2. Market and demand of the products.
2.6.3. Requirements of miscellaneous assets for the project.
2.6.4. Estimation of installed capacity and operation pattern.
2.6.5. Consumables, power & utilities and manpower requirements etc.
2.6.6. Estimation of the cost of the project and working capital requirements.
2.6.7. Means of Finance
2.6.8. Estimation of cost of operation, profitability and fund flow statements etc.
2.6.9. Implementation Schedule.
2.6.10. The total Project cost is estimated at Rs. 18.45 Lakhs which includes margin money
for working capital @ 25%.
2.6.11. The various profitability estimates and other financial indicators worked out as given
in the following pages are up to the satisfaction level.
Page | 2
CHAPTER-3
PROJECT DESCRIPTION
3.1. The proposed project is that of setting up of a Spice Grinding and Packaging unit at
suitable location.
3.2. The key products of the proposed project are as follows;
 Turmeric Powder
 Chili Powder
 Pepper Powder
 Jeera Powder
 Dhania Powder
3.3. Spices are used all over the country and the unit can go on adding new products once
achieves stability in the market.
3.4. The proposed project would procure the raw materials from the farm level available
locally. After processing, the products would be supplied to the market through
distributors/ wholesalers/retailers.
Page | 3
CHAPTER-4
MARKET PROSPECT
4.1. India is the world's biggest exporter of spices. There is good scope for domestic
market for this commodity in processed form. The market for export of spices is
encouraged in processed form as it will bring more value addition to the unit price of
whole spices. The demand for spice powder is increasing day by day with the
changing attitude as well as improvement in purchasing power of the people. The
products find good market in urban areas of the country particularly within the state
itself.
4.2. Market Promotion plays a vital role for the generation of the potential customers
therefore, application of marketing strategies are recommended. Marketing plan of the
proposed project may include good quality maintenance, promotional campaign like
offering special discounts, referrals, advertisement and tying up with buying houses.
Page | 4
CHAPTER-5
TECHNOLOGICAL PROCESS
5.1. The process flow diagram is as follows:
WASHING
PEELING & CUTTING
DRYING
GRINDING/PULVERIZING
MIXING
PACKING/LOADING/SUPPLY
5.2. PROCESS DETAILS:
(i) Washing: First of all, the spices are washed with water under high pressure to
remove impurities.
(ii) Peeling & Cutting to Small Pieces: Some spices require peeling and cutting to
small pieces. Such spices are peeled with hand knives.
(iii) Drying: Spices are spread on the floor to provide sun drying. At times,
mechanical dryers are also used. Tray type dryer is most suitable.
(iv) Grinding/ Pulverising: Spices are grinded in dry form.
(v) Mixing: After all the above operations, various spices for different purposes
are mixed together.
(vi) Packaging: At the end, spices powder are packaged in automatic form, fill and
sealing machine.
(vii) Transportation and Marketing: Thereafter, the products are transported and
supplied to the bulk purchasers.
Page | 5
CHAPTER-6
QUALITY CONTROL AND STANDARDS
6.1. Following specifications under Bureau of Indian Standard related to processing of

such products may be referred:
Turmeric Powder: IS: 2446-1980
Chili Powder: IS: 2445-1984
Pepper Powder: IS: 1778-1982
Cumin Seeds Powder: IS: 2447-2010
Coriander Powder: IS: 2444- 1980
6.2. FSSAI LICENSE: FSSAI License is issued by the Food Safety and Standards
Authority of India (FSSAI), Ministry of Family Health & Welfare, Government of
India. Application to commence a food business must be made to the FSSAI in the
prescribed format. Based on the application and supporting documents, FSSAI will
accord approval. The Food Safety and Standards (Licensing and Registration of Food
Businesses) Regulations 2011introduced to improve the hygiene and quality of food
has brought about tremendous changes in the food industry. As per the Act, no person
shall commence or carry on any food business except under a FSSAI license or
FSSAI registration. Therefore, any food manufacturing or processing or packaging or
distributing entity is now required to obtain a FSSAI License or Registration.
6.3. POLLTUION CONTROL: There is no major pollution problem associated with this
project in terms of air and sound pollution except for disposal of waste water which
would be managed appropriately through recycling facility. However, entrepreneur
should obtain NOC from concerned State Pollution Control Board.
6.4. EFFLUENT DISPOSAL: Disposal of any effluent out of the project unit should be
treated with recycling facility or dumped in such a way that these does not cause
hazard in the vicinity of the site.
6.5. ENERGY CONSERVATION: Adequate care should be taken in electrical

installations and optimal utilization of machinery.
Page | 6
CHAPTER-7
CONSUMABLES, POWER AND UTILITY
7.1. The major consumables required are as follows;
1. Turmeric, Chili, Pepper, Jeera and Dhania.
2. Packaging Materials including secondary packaging.
7.2. POWER:
The total requirement of power for the project is 16.92 KW. The total power supply
would be distributed in the following way;
Plant & Machinery - 14.92 KW
General Lighting - 2.00 KW
The details requirement is shown in Appendix-C2.
7.3. UTILITY:
WATER: Constant flow of water would be necessary in the operation of the plant.
Water would be obtained from bore well and can be stored in an overhead tank, from
where it will be supplied to the required areas. Process water should be free of mud
and suspended particles. It should be available at a pressure of 3 Kg/sq.cm.
OTHER UTILITIES: Other utilities includes fuel etc. those should be locally
available. Detail expenditure against the head is shown in Appendix- C2.
Page | 7
CHAPTER-8
INSTALLED CAPACITY
8.1. In assessing the proposed plant capacity, due consideration has been given to
technological and financial factors, marketing considerations, availability of
consumables, infrastructure facilities and economic viability. The detailed
requirement of the plant and machineries to achieve the plant capacity is assessed by
the unit technician. While arriving at the requirement of various type of equipment
and machinery required for the unit, due considerations has been given to the
following points.
a) Minimum Wastage
b) High Productivity
c) Maximum flexibility in operation
d) Adequate stock by provision wherever necessary
The installed production capacity of the unit per annum is as follows;
Turmeric Powder - 25 Ton

Chilli Powder - 15 Ton
Pepper Powder - 15 Ton
Jeera Powder - 10 Ton
Dhania Powder - 10 Ton
For the purpose of carrying out this economic viability of the proposed project, it is
assumed that the plant will operate at following efficiencies during the first 5(Five)
years.
Year 01 02 03 04 05
Capacity 50% 60% 70% 70% 70%

Utilization
Page | 8
CHAPTER-9
BASIS AND PRESUMPTIONS
While deriving figures and projections in this Project report, following Basis and
Presumptions have been made.
9.1. The project is based on a single shift basis and 300 days of working schedule in a
year, working for 8 hours a day, 25 days a month.
9.2. The project cost and other projections etc. have been made on present market
conditions and the sources available within our sources only and therefore it may vary
on account of market fluctuations and with different suppliers and qualities.
9.3. The cost of machinery and equipment/materials indicated refer to a particular make
and the prices are approximate to these prevailing at the time of preparation of this
report.
9.4. Power rate is assumed at Rs.6.00 per unit and monthly fixed rental charges.
9.5. Water would be made available through bore well facility at the project site.
9.6. Manpower requirement for the project has been planned considering the size of the
unit.
9.7. Interest rates considered is 8% on term loan and 12.00% on Working capital loan for
financial assistance.
9.8. For repayment, a period of 6 years is planned with moratorium period of one year.
9.9. Insurance charges have been considered Lump Sum.
9.10. Repair and maintenance have been calculated at reasonably.

9.11. Depreciation shown has been calculated on Straight Line Method.
9.12. Non-refundable deposits, Preparation of detailed project report fees, Architecture fees,
traveling & Convenience amount, Know-how & Engineering fees, Application
processing fees, trial production, fees etc are considered under pre-operative
expenses.
9.13. Break Even Point & Rate of Return is calculated on optimum production condition
findings.
9.14. At the plant site, availability of unskilled labour is not a problem. Skilled and
unskilled labour can be recruited for operating the plant. Initial training will be
required for smooth and efficient running of the plant. It is felt that the skilled
manpower available locally having some experience in operation can be recruited to
satisfy the manpower need.
9.15. Project would be set up at a site that is well connected by road and there is adequate
supply of power and water.
Page | 9
CHAPTER-10
PROJECT COST ESTIMATES AND MEANS OF FINANCE
10.1. TOTAL PROJECT COST:
The Capital cost of the project has been estimated on the basis of installed capacity
assuming 200 working days per annum. The total cost of the Project including margin
for working capital has been estimated at Rs. 18,45,000.00 as detailed in Annexure-
A.
10.2. LAND, BUILDING AND CIVIL WORKS:
The approximate cost of civil works including Building, Electrification, Water

Supply, Sanitation and Drainage etc will be Rs. 5,00,000.00.
10.3. PLANT & MACHINERY:
The total cost of Plant & Machinery has been estimated at Rs.6,22,000.00as detailed
in Appendix-A2.
10.4. PLANT EXPENDITURE:
The total cost on Plant expenditure includes admissible taxes, transportation,

insurance of the machineries and installation etc. has been included as detailed in
Appendix-A2.
10.5. FIXED ASSET:
The cost of Misc. Fixed Assets has been estimated at around Rs. 2, 09,000.00 as
detailed in Appendix-A3. These include cost of furniture and fixture’s and office
equipment.
10.6. PRELIMINARY & PRE-OPERATIVE EXPENDITURE:
An expenditure of Rs. 2, 11,000.00 has been earmarked on this account, as detailed in

Appendix- A4.
10.7. CONTINGENCY AND ESCALATION:
This has been calculated @ 5% on Civil Work, Plant & Machinery and Misc. Fixed
Assets to provide safeguard against escalation of prices or any other unforeseen
expenditure. The total amount works out to Rs. 67,000.00.
10.8. WORKING CAPITAL ESTIMATES:
The details of the Working Capital requirements of the proposed unit have been
shown in Annexure-C. In arriving at the working capital estimates, various
components vis Administrative Expenses/Consumables and Working Expenses have
been taken on the basis of usual norms. The Working Capital requirement is proposed
to be met from project margin money and cash credit loan borrowings from the
financial institution.
Page | 10
10.9. MEANS OF FINANCE:
The Proposed Project Cost of Rs. 18.45 Lakhs would be financed under MSME
development schemes of financial institutions/commercial banks, in the following
manner as shown below.
1. LOAN FROM BANK/FI @ 60% = 11.07 LAKHS
2. PROMOTERS CONSTRIBUTION @ 40% = 7.38 LAKHS
TOTAL = 18.45 LAKHS
10.10. DEBT-EQUITY RATIO:
Based on the above financing pattern, the Debt-Equity ratio of the Project is 1.5:1.
Page | 11
CHAPTER-11
ECONOMIC VIABILITY
AND
FINANCIAL ANALYSIS
11.1. COST OF PRODUCTION:
The cost of production has been estimated annually for the first five years of
operation. The various cost components taken into account are cost of administrative
expenses, consumable stores, utilities, wages and salaries, repairs and maintenance,
insurance, interest rates, taxes etc. depreciation. The detailed cost of production has
been shown in Annexure-D.
11.2. REPAIR & MAINTENANCE:
Cost under Repair and Maintenance expenses have been assessed by charging 1% on
Land & Building, 2% on Machineries and 1.5% on Fixed Assets on first year with
increase of 2% on subsequent years as detailed in Appendix-D1.
11.3. ADMINISTRATIVE EXPENSES:
This has been considered in the cost and profitability statement under other expenses
etc.
11.4. SELLING EXPENSES:
This has been considered in the cost and profitability statement under other expenses
etc.
11.5. DEPRECIATION:
In calculating the cost of operation, depreciation has been calculated under straight
line method after absorbing the pre-operative and contingencies expenses as shown in
Appendix-D4.
11.6. FINANCIAL CHARGES:
The interest on proposed term loan amount of Rs. 11.07 Lakhs has been calculated@
8% being the rate of interest. The interest calculation for various years after
considering the repayments due in respective years has been shown in Appendix-D3.
11.7. SALES REALISATION:
The total annual income of the Project is shown in Appendix-D2. Based on 70%
capacity utilisation, total turnover is estimated at Rs. 114.63 Lakhs on third year, the
sale for other years are estimated at different capacity utilisation as shown in
Appendix-D2.
Page | 12
11.8. NET PROFIT:
The proposed project is expected to generate profit from the first year of operation
itself and will gradually increase with increase in capacity utilisation.
11.9. INTERNAL ACCRUALS:
The net profit after tax with depreciation added back would make up sufficient
internal accruals to meet the term loan, working capital loan repayment obligations
without any liquidity problems.
11.10. FINANCIAL ANALYSIS:
The break-even point of the proposed project is 49.22%at 70% operating capacity on
third year as shown in Annexure-F.
The DSCR of the project has been worked out in Annexure-H with an average of
1:2.30, which is considered quite satisfactory to meet the repayment and interest
obligations in respect of the term loan.
The internal rate of return of the project works out to 18.00 %, which is
satisfactory.
Page | 13
ANNEXURE-A
ESTIMATED COST OF THE PROJECT
Particulars Amount (Rs. lacs)

Land & Site development Own Land/ On Lease
Building & Civil Works 5.00
Plant & Machinery 6.22
Misc. Fixed Assets 2.09
Preliminary & Pre-operative Expenses 2.11
Contingencies & Escalation @ 5% 0.67
Working Capital 2.36
TOTAL 18.45
Total Project Cost :Rs. 18, 45, 000.00
(Rupees Eighteen Lakhs and Forty Five Thousand Only).
Page | 14
ANNEXURE-B
PROPOSED MEANS OF FINANCE
Particulars Percent Amount (Rs. lacs)

EQUITY
A. Equity from Promoters 40% 7.38
B. Subsidy from Central/ State Govt. -
DEBT
Term Loan from Banks/ FIs 60% 11.07
TOTAL 100% 18.45
Total Project Cost :Rs. 18, 45, 000.00
(Rupees Eighteen Lakhs and Forty Five Thousand Only).
Page | 15
ANNEXURE-C
WORKING CAPITAL ESTIMATES
(Rs. in lacs)
Period Total Current Assets
(Days) Year 1 Year 2 Year 3
Raw Materials 10 1.80 2.16 2.52
Power & Utility 30 0.13 0.15 0.18
Salary 30 0.90 0.90 0.91
Finished Goods 15 3.26 3.82 4.39
Receivables 15 3.36 4.04 4.71
Total 9.45 11.08 12.71
Working Capital Margin in Year 1

25%) 2.36
Page | 16
ANNEXURE-D
COST AND PROFITABILITY ESTIMATES
(Rs. in lacs)
Particulars Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6
A. INCOME
Production Capacity (Ton/ annum) 75 75 75 75 75 75
Capacity utilisation 50% 60% 70% 70% 70% 70%
Production/ annum at capacity utilisation 38 45 53 53 53 53
Total income/ annum 81.88 98.25 114.63 114.63 114.63 114.63
B. OPERATING EXPENSES
Raw Materials 65.81 78.98 92.14 92.14 92.14 92.14
Power & Utility 1.55 1.87 2.18 2.18 2.18 2.18
Salary 10.92 10.97 11.03 11.08 11.14 11.20
Repair & Maintenance 0.22 0.22 0.22 0.23 0.23 0.24
Other Expenses 0.82 0.98 1.15 1.15 1.15 1.15
Total Operating Expenses 79.32 93.02 106.72 106.78 106.84 106.90
Operating profit 2.55 5.23 7.91 7.85 7.79 7.73
C. FINANCIAL EXPENSES
Depreciation 0.79 0.79 0.79 0.79 0.79 0.79
Interest on Term Loan 0.89 0.80 0.63 0.45 0.27 0.10
Interest on Working Capital Loan 0.85 1.00 1.14 1.14 1.14 1.14
Net Profit 0.03 2.64 5.35 5.47 5.58 5.70
Net Cash Accruals 0.82 3.43 6.14 6.26 6.37 6.49
Principal Repayment 0.00 2.21 2.21 2.21 2.21 2.21
Page | 17
ANNEXURE-E
PROJECTED BALANCE SHEET
(Rs. in lacs)
Particulars Impl. Period Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6

LIABILITIES
Promoters Capital
Promoters capital 7.38 7.38 7.38 7.38 7.38 7.38 7.38
Profit from P&L 0.03 2.67 8.02 13.49 19.07 24.77
Sub Total 7.38 7.41 10.05 15.40 20.87 26.45 32.15
Secured Loan
Term loan 11.07 11.07 8.86 6.64 4.43 2.21 0.00
CC limit from Banks 7.09 8.31 9.53 9.53 9.53 9.53
Sub Total 11.07 18.16 17.17 16.17 13.96 11.74 9.53
Unsecured Loan
Current Liabilities
Total of Liabilities 18.45 25.57 27.21 31.57 34.82 38.19 41.68
ASSETS
Gross Fixed Block 13.98 13.98 13.98 13.98 13.98 13.98 13.98
Sub Total (a) 13.98 13.98 13.98 13.98 13.98 13.98 13.98
Depreciation
Cum. Depreciation 0.79 1.58 2.36 3.15 3.94 4.73
Sub Total (b) 0.00 0.79 1.58 2.36 3.15 3.94 4.73
Net Fixed Asset Block (a-b) 13.98 13.19 12.40 11.61 10.82 10.03 9.25
Current Asset Block
W.I.P.(Inventories)
Cash & Bank balance 2.36 1.03 2.05 5.78 10.03 14.40 18.89
Other Current Assets 9.45 11.08 12.71 12.71 12.71 12.71
Sub-Total 2.36 10.48 13.13 18.48 22.73 27.11 31.59
Preliminary expenses not written off 2.11 1.90 1.69 1.48 1.27 1.06 0.84
Total of Assets 18.45 25.57 27.21 31.57 34.82 38.19 41.68
Page | 18
ANNEXURE-F
PROJECTED CASHFLOW STATEMENT
(Rs. in lacs)
Particulars Impl. Period Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6
SOURCES OF FUND
Profit after tax with depreciation &

interest added back 2.55 5.23 7.91 7.85 7.79 7.73
Increase in Promoters capital 7.38
Increase in un-secured loan
Increase in Term Loan 11.07
Increase in Bank borrowing (WC) 7.09 1.22 1.22
Prelim. exp. W/off 0.21 0.21 0.21 0.21 0.21 0.21
Decrease in WIP(inventory)
Decrease in Other current assets
Sub Total 18.45 9.85 6.66 9.34 8.06 8.00 7.94
USES OF FUND
Preliminary expenses 2.11
Capital expenditure 13.98
Increase in WIP
Repayment of Term Loan 0.00 2.21 2.21 2.21 2.21 2.21
Decrease in unsecured loan
Interest payment
Term Loan 0.89 0.80 0.63 0.45 0.27 0.10
Other bank(W.C) 0.85 1.00 1.14 1.14 1.14 1.14
Increase in Working capital 9.45 1.63 1.63
Decrease in Other current liabilities
Sub Total 16.09 11.19 5.64 5.61 3.81 3.63 3.45
Opening cash/bank balance 0.00 2.36 1.03 2.05 5.78 10.03 14.40
Surplus/Deficit 2.36 -1.34 1.02 3.73 4.25 4.37 4.49
Closing cash/bank balance 2.36 1.03 2.05 5.78 10.03 14.40 18.89
Page | 19
ANNEXURE-G
DEBT-SERVICE COVERAGE RATIO
(Rs. in lacs)
Year 1 2 3 4 5 6
Profit After Tax (Net Profit) 0.03 2.64 5.35 5.47 5.58 5.70
Depreciation 0.79 0.79 0.79 0.79 0.79 0.79
Interest 0.89 0.80 0.63 0.45 0.27 0.10
Total 1.70 4.23 6.77 6.71 6.65 6.59
Interest 0.89 0.80 0.63 0.45 0.27 0.10
Loan Repayment 0.00 2.21 2.21 2.21 2.21 2.21
Total 0.89 3.02 2.84 2.66 2.49 2.31
DSCR 1.92 1.40 2.38 2.52 2.67 2.85
Average DSCR = 2.30
Page | 20
ANNEXURE-H
BREAK-EVEN ANALAYSIS
(Rs. in lacs)
Year 1 2 3
A. Net sales (Rs. lac) 81.88 98.25 114.63

B. Variable cost
Raw Materials 65.81 78.98 92.14
Power & Utility 1.55 1.87 2.18
Other Expenses 0.82 0.98 1.15
Interest on Working Capital Loan 0.85 1.00 1.14
Total variable cost 69.04 82.82 96.60
C. Contribution (A-B) 12.84 15.43 18.02
D. Fixed & Semi-fixed Costs
Salary 10.92 10.97 11.03
Repair & maintenance 0.22 0.22 0.22
Interest on Term Loan 0.89 0.80 0.63
Depreciation 0.79 0.79 0.79
Total fixed cost 12.81 12.79 12.67
E. BREAKEVEN POINT 99.79% 82.88% 70.31%
F. BEP at operating capacity 49.89% 49.73% 49.22%
G. Cash BEP 46.82% 46.66% 46.15%
Page | 21
ANNEXURE-I
INTERNAL RATE OF RETURN
(Rs. in lacs)
Year 0 1 2 3 4 5 6
CASH OUTFLOW
Capital Expenditure 13.98 0.00 0.00 0.00 0.00 0.00 0.00

Working Capital 0.00 9.45 1.63 1.63 0.00 0.00 0.00
Total (A) 13.98 9.45 1.63 1.63 0.00 0.00 0.00
CASH INFLOW
Profit After Tax 0.03 2.64 5.35 5.47 5.58 5.70
Add: Depreciation 0.79 0.79 0.79 0.79 0.79 0.79
Add: Interest 0.89 0.80 0.63 0.45 0.27 0.10
Add: Salvage Value
Total (B) 0.00 1.70 4.23 6.77 6.71 6.65 6.59
NET FLOW (B-A) -13.98 -7.75 2.61 5.14 6.71 6.65 6.59
IRR = 18%
Page | 22
ANNEXURE-J
TERM LOAN REPAYMENT SCHEDULE
(Rs in lacs)
Month Year 1 2 3 4 5 6
Month 1 Opening balance 11.07 11.07 8.86 6.64 4.43 2.21
Repayment 0.00 0.18 0.18 0.18 0.18 0.18
Interest (8%) 0.07 0.07 0.06 0.04 0.03 0.01
Closing balance 11.07 10.88 8.67 6.46 4.24 2.03
Repayment 0.00 0.18 0.18 0.18 0.18 0.18
Interest 0.07 0.07 0.06 0.04 0.03 0.01
Closing balance 11.07 10.70 8.49 6.27 4.06 1.84
Repayment 0.00 0.18 0.18 0.18 0.18 0.18
Interest 0.07 0.07 0.06 0.04 0.03 0.01
Closing balance 11.07 10.52 8.30 6.09 3.87 1.66
Repayment 0.00 0.18 0.18 0.18 0.18 0.18
Interest 0.07 0.07 0.06 0.04 0.03 0.01
Closing balance 11.07 10.33 8.12 5.90 3.69 1.48
Repayment 0.00 0.18 0.18 0.18 0.18 0.18
Interest 0.07 0.07 0.05 0.04 0.02 0.01
Closing balance 11.07 10.15 7.93 5.72 3.51 1.29
Repayment 0.00 0.18 0.18 0.18 0.18 0.18
Interest 0.07 0.07 0.05 0.04 0.02 0.01
Closing balance 11.07 9.96 7.75 5.53 3.32 1.11
Repayment 0.00 0.18 0.18 0.18 0.18 0.18
Interest 0.07 0.07 0.05 0.04 0.02 0.01
Closing balance 11.07 9.78 7.56 5.35 3.14 0.92
Repayment 0.00 0.18 0.18 0.18 0.18 0.18
Interest 0.07 0.07 0.05 0.04 0.02 0.01
Closing balance 11.07 9.59 7.38 5.17 2.95 0.74
Repayment 0.00 0.18 0.18 0.18 0.18 0.18
Interest 0.07 0.06 0.05 0.03 0.02 0.00
Closing balance 11.07 9.41 7.20 4.98 2.77 0.55
Repayment 0.00 0.18 0.18 0.18 0.18 0.18
Interest 0.07 0.06 0.05 0.03 0.02 0.00
Closing balance 11.07 9.22 7.01 4.80 2.58 0.37
Repayment 0.00 0.18 0.18 0.18 0.18 0.18
Interest 0.07 0.06 0.05 0.03 0.02 0.00
Closing balance 11.07 9.04 6.83 4.61 2.40 0.18
Repayment 0.00 0.18 0.18 0.18 0.18 0.18
Interest 0.07 0.06 0.05 0.03 0.02 0.00
Closing balance 11.07 8.86 6.64 4.43 2.21 0.00
Principal Repayment 0.00 2.21 2.21 2.21 2.21 2.21

Interest 0.89 0.80 0.63 0.45 0.27 0.10
Page | 23
APPENDIX-A1
COST OF LAND AND BUILDING
Covered Area – 1,000 Square Feet
Particulars Area (Sqft) Rate (Rs) Amount (Rs)

Work Shed, Store House cum Office 1000 400 400000
Sub total 400000
Add: Electrification, Water supply, Sanitation and Drainage @ 25% 100000
TOTAL 500000
Say (Rs. in lacs) 5.00
Page | 24
APPENDIX-A2
COST OF PLANT AND MACHINERY
Particulars Qty Amount (Rs)

Pulveriser with Motor and accessories 2 510000
Disintegrator with Motor 1
Hot Air Dryer 2
Sieving Machine 1
Automatic Form Fill and Sealing Machine 1
Manual Packaging Machine 2
Platform Weighing Scale 1
Aluminium Top Working Tables 3
Washing Tanks, SS Utensils, Trays and Laboratory LS 30000
Equipment’s
Miscellaneous Equipment’s LS 25000
Sub total 565000
Add: Taxes, transportation and installation etc @ 10% 56500
TOTAL 621500
Page | 25
APPENDIX-A3
MISCELLANEOUS FIXED ASSETS
Particulars Qty Rate (Rs) Amount (Rs)

Electrical Load Security and Transformer LS -- 95000
Furniture’s and Fixtures LS -- 50000
Miscellaneous items LS -- 45000
Sub total 190000
Add: Taxes, transportation and installation etc @ 10% 19000
TOTAL 209000
Page | 26
APPENDIX-A4
PRELIMINARY AND PRE-OPERATIVE EXPENSES
Particulars Amount (Rs. lacs)

Travelling Expenses 40000
Non Refundable Deposits and Professional Fees 87000
Interest during implementation 49040
Miscellaneous expenses 35000
TOTAL 211040
Page | 27
APPENDIX-C1
MANPOWER REQUIREMENT & COST
The salaries and wages of different types of manpower is projected as follows:
Salary/ Cost/
Particulars of Employee Numbers Month annum
(Rs) (Rs)
Manager 1 12500 150000
Sales Person 4 8250 396000
Skilled Workers 2 6250 150000
Semi-Skilled Workers 3 5000 180000
Unskilled Workers 4 4500 216000
Expenses on salary in the 1st year (Rs) 1092000
Increase of 0.50% has been considered every subsequent year.
Page | 28
APPENDIX-C2
POWER AND UTILITY
A. Expenses on Power
Particulars Quantity Power (Kw) Total (Kw)
Plant & Machinery (Total HP of 20) 1 14.92 14.92
General Lighting 25 0.10 2.50
Total power requirement/ day (Kw) 17.42
No. of hrs/ day 8

Nos. of days/annum 300
Annual power requirement (kwh) 41808
Rate per unit (Rs) 6
Expenses on power (Rs) 250848
B: Estimate of Utility
Expenses on Water/Other Utilities (Rs) 60000
Expenses on Power & Utility at 100% capacity (Rs) 310848
Page | 29
APPENDIX-D1
REPAIR AND MAINTENANCE COST
(Rs. in lacs)
Particulars Cost (Rs) Contingencies Total Rate Amount (Rs)
Building & Civil Works 5.00 0.25 5.25 1.00% 0.05
Plant & Machinery 6.22 0.31 6.53 2.00% 0.13
Misc. Fixed Assets 2.09 0.10 2.19 1.50% 0.03
Expenses on repair &
maintenance in year 1 13.31 0.67 13.98 0.22
Page | 30
APPENDIX-D2
ESTIMATES OF INCOME
(Basis-100% Capacity Utilisation)
Price
per
Unit
Particulars Qty (Rs.) Amount (Rs.)
Turmeric Powder 25 Ton 125000 3125000
Chilli Powder 15 Ton 125000 1875000
Pepper Powder 15 Ton 555000 8325000
Jeera Powder (Cumin Seeds Powder) 10 Ton 180000 1800000
Dhania Powder (Coriander Powder) 10 Ton 125000 1250000
Total Sales per annum at 100% capacity (Rs) 75 Ton 16375000
Page | 31
APPENDIX-D3
INTEREST ON WORKING CAPITAL
(Rs. in lacs)
Particulars Year 1 Year 2 Year 3
Total Current Assets 9.45 11.08 12.71
Bank Loan (75%) 7.09 8.31 9.53
Interest @ 12% 0.85 1.00 1.14
Page | 32
APPENDIX-D4
DEPRECIATION SCHEDULE
(Rs in lacs)
Amount/
Description Cost (Rs) Contingencies Total Rate annum
(Rs)
Building & Civil Works 5.00 0.25 5.25 3.17% 0.17
Plant & Machinery 6.22 0.31 6.53 6.33% 0.41
Misc. Fixed Assets 2.09 0.10 2.19 9.50% 0.21
TOTAL 13.31 0.67 13.98 0.79
Page | 33

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PROJECT REPORT

SL. NO. ITEMS PAGE NO.

1. THE PROJECT AT A GLANCE 01

6. QUALITY CONTROL AND STANDARDS 06

7. CONSUMABLES, POWER AND UTILITY 07

9. BASIS AND PRESUMPTIONS 09

10. PROJECT COST ESTIMATES AND 10

11. ECONOMIC VIABILITY AND FINANCIAL 12

SL. NO. ITEMS PAGE NO.

A. ESTIMATED COST OF THE PROJECT 14

B. PROPOSED MEANS OF FINANCE 15

C. WORKING CAPITAL ESTIMATES 16

D COST AND PROFITABILITY ESTIMATES 17

E. PROJECTED BALANCE SHEET 18

F. PROJECTED CASH FLOW STATEMENT 19

G. DEBT-SERVICE COVERAGE RATIO 20

I. INTERNAL RATE OF RETURN 22

K. TERM LOAN REPAYMENT SCHEDULE 23

SL. NO. ITEMS PAGE NO.

A1. COST OF LAND & BUILDING 24

A2. COST OF PLANT & MACHINERY 25

A3. MISC. FIXED ASSETS 26

A4. PRELIMINARY & PRE-OPERATIVE 27

C1. MANPOWER REQUIREMENT & COST 28

C2. POWER & UTILITY 29

D1. REPAIR AND MAINTENANCE COST 30

D2. ESTIMATES OF INCOME 31

D3. INTEREST ON WORKING CAPITAL 32

D4. DEPRECIATION SCHEDULE 33

THE PROJECT AT A GLANCE

Sl. No. Particulars Description

2.6.2. Market and demand of the products.

2.6.3. Requirements of miscellaneous assets for the project.

2.6.4. Estimation of installed capacity and operation pattern.

2.6.5. Consumables, power & utilities and manpower requirements etc.

2.6.7. Means of Finance

2.6.9. Implementation Schedule.

3.2. The key products of the proposed project are as follows;

5.1. The process flow diagram is as follows:

PEELING & CUTTING

5.2. PROCESS DETAILS:

(iv) Grinding/ Pulverising: Spices are grinded in dry form.

QUALITY CONTROL AND STANDARDS

6.1. Following specifications under Bureau of Indian Standard related to processing of

Turmeric Powder: IS: 2446-1980

Chili Powder: IS: 2445-1984

Pepper Powder: IS: 1778-1982

Cumin Seeds Powder: IS: 2447-2010

Coriander Powder: IS: 2444- 1980

6.5. ENERGY CONSERVATION: Adequate care should be taken in electrical

CONSUMABLES, POWER AND UTILITY

7.1. The major consumables required are as follows;

1. Turmeric, Chili, Pepper, Jeera and Dhania.

2. Packaging Materials including secondary packaging.

Plant & Machinery - 14.92 KW

General Lighting - 2.00 KW

The details requirement is shown in Appendix-C2.

The installed production capacity of the unit per annum is as follows;

Turmeric Powder - 25 Ton

Capacity 50% 60% 70% 70% 70%

BASIS AND PRESUMPTIONS

9.9. Insurance charges have been considered Lump Sum.

9.10. Repair and maintenance have been calculated at reasonably.