PROJECT REPORT- MSME DEVELOPMENT INSTITUTE, CHENNAI

PROJECT TITLE - COLD PRESSED OIL

1 Name of the Entreprenuer :

2 Constitution (legal Status) : Individual

3 Father's/Spouse's Name :

4 Unit Address :

Taluk/Block:
District :
Pin: State:
Phone
:
E-Mail
:

5 Product and By Product Groundnut oil & groundnut cake

6 Cost of Project : Rs. 52,47,767

7 Means of Finance
Term Loan Rs. 47,22,990.00
KVIC Margin Money Rs. 3,88,375.00
Own Capital Rs. 524777.00

8 Debt Service : 1.95

Coverage Ratio

9 Pay Back Period : 5 Years

10 Project : 6 Months
Implementation
Period

11 Break Even Point : 26.55%

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 PROJECT REPORT- MSME DEVELOPMENT INSTITUTE, CHENNAI

12 Employment : 4

13 Power Requirement : 5 HP

14 Major Raw materials : Groundnut seeds, packaging materials

15 Estimated Annual : Rs. 15840000.00

Sales Turnover

DETAILED PROJECT REPORT

1 INTRODUCTION :

Oil seed crops occupy an important place in the agriculture and industrial economy of the country. India
has the largest number of commercial varieties of oil seeds. Groundnut Oil is also one of the major oil
seeds from which edible oil is produced. Groundnut oil production in India is financially a profitable
venture with huge export potential.
Groundnut kernel contains 50-55% of oil. The oil obtained from the kernel is yellow to greenish yellow in
colour with chief constituents of glycerides of oleic and linoleic acids with lesser amounts of the
glycerides of palmitic, stearic, arachidic, behenic, and lignoceric acid. The oil is used as a substitute for
olive oil and other edible oils, soaps, salad and cooking oil, mayonnaise and margarine. The groundnut
cake is an important component of feeds (byproducts) for poultry and cattle.

2 MARKET :

Groundnuts are a popular source of food throughout the world. Groundnut oil is used for cooking food
and as a shortening or as a base for confectioneries and they can be used to make peanut butter.
Groundnut oil ranks at the top among edible oils exported from India. It is a premium oil and its cost is
also high. Most other edible oils are priced lower than groundnut oil. Groundnut oil is available in the
market in refined and filtered forms. The size of the global groundnut oil market is about 188,000 MT,
during FY2013. Additionally, India exports about 16,500 MT of groundnut.

3 COST OF PROJECT
A. Fixed Capital Investment

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 PROJECT REPORT- MSME DEVELOPMENT INSTITUTE, CHENNAI

a. Land : 150000 Own

b. Workshed Area Sq.ft Rate in Rs. Amt. In Rs.

Factory buildup 500 1300.00 650000.00
Total 650000.00

C. Machinery Qty. Rate Amount in Rs.

Ghani machinecapacity 20 Kg/hr 2 160000.00 320000.00
Dehuller 1 120000.00 120000.00
Filter / strainer 1 75000.00 75000.00
Oil Storage Tank 3 10000.00 30000.00
Electronic Weighing Scale 1 20000.00 20000.00
Misc. equipment & Tools 1 50000.00 50000.00
Electrical Accessories 1 70000.00 70000.00
Total 685000.00
d. Preliminary & Pre-operative Cost : Rs. 50000.00

e. Furniture & Fixtures : Rs. 100000.00

f. Contingency @10 % : Rs. 68500.00

Total Capital Expenditure : Rs. 1553500.00

Working Capital : Rs. 3694266.67

Total Cost Project : Rs. 5247766.67

3.1 Means of Financing :

Own Contribution 10% Rs. 524777.00

Bank Finance : 90%

Term Loan Rs. 4722990.00
Working Capital Rs. 3324840.00

Total Rs. 8047830.00

Margin Money (Govt. Subsidy) From KVIC 25% Rs. 388375.00

Margin Money Subsidy received From KVIC will be kept in term deposit as per norms of PMEGP in the
name of Beneficiary for three years in the financing branch

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 PROJECT REPORT- MSME DEVELOPMENT INSTITUTE, CHENNAI

3.2 STATEMENT SHOWING THE REPAYMENT OF TERM LOAN & WORKING CAPITAL :
TERM LOAN

Interest @
Year Opening Balance Installment Closing Balance
12.00%
1st 4722990 472299 4250691 566759
2nd 4250691 944598 3306093 510083
3rd 3306093 661219 2644874 396731
4th 2644874 528975 2115900 317385
5th 2115900 423180 1692720 253908
6th
7th
8th

WORKING CAPITAL

Interest @
Year Opening Balance Installment Closing Balance
12.00%
1st 3324840 332484 2992356 398981
2nd 2992356 299236 2693120 323174
3rd 2693120 269312 2423808 323174
4th 2423808 242381 2181428 290857
5th 2181428 218143 1963285 261771
6th
7th
8th

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 PROJECT REPORT- MSME DEVELOPMENT INSTITUTE, CHENNAI

3.3 STATEMENT SHOWING THE DEPRECIATION ON FIXED ASSETS:

WORKSHED @ 10.00%
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Opening Balance 650000 585000 526500 473850 426465
Depreciation 65000 58500 52650 47385 42647
Closing Balance 585000 526500 473850 426465 383819
MACHINERY @ 10.00%
Opening Balance 685000 616500 554850 499365 449429
Depreciation 68500 61650 55485 49937 44943
Closing Balance 616500 554850 499365 449429 404486
TOTAL DEPRECIATION
Workshed 65000 58500 52650 47385 42647
Machinery 68500 61650 55485 49937 44943
Total 133500 120150 108135 97322 87589

4 Schedule of Sales Realization :

4.1 Details of Sales
Rate/ No. of Amount in Rs.
Particulars of Product
Pair/Unit Pair/Unit
Groundnut oil 270.00 48000 12960000.00
Groundnut cake 60.00 48000 2880000.00

Total 15840000.00

4.2 Capacity Utilization of Sales

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year

Capacity Utilization 70% 80% 90% 90% 90%

Sales / Receipts 11088000 12672000 14256000 14256000 14256000

5 Raw materials :
Particulars Unit Rate/unit Reqd.Unit Amount in Rs.
Ground nut seeds kg 65.00 96000 6240000.00
Empty tins nos 50.00 6000 300000.00
Packaging materials nos 20.00 6000 120000.00
Total 6660000.00

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 PROJECT REPORT- MSME DEVELOPMENT INSTITUTE, CHENNAI

5.1 Salary/ Wages :

No. of Wages Amount in Rs.
Particulars
Worker Per Month (Per Annum)
Manager 1 15000.00 15000.00
Accountant/ Store-keeper 1 10000.00 10000.00
Skilled worker 1 8000.00 8000.00
Unskilled worker 1 6500.00 6500.00
Total 4 39500.00
5.2 Repairs and Maintenance : Rs. 5000.00

5.3 Power and Fuel : Rs. 8000.00

5.4 Other Overhead Expenses : Rs. 3000.00

6 Administrative Expenses :
6.1 Telephone Expenses Rs. 1000.00

6.2 Stationery & Postage Rs. 2000.00

6.5 Advertisement & Publicity Rs. 5000.00

6.6 Workshed Rent Rs. 8000.00

6.7 Other Miscellaneous Expenses Rs. 2000.00

Total 34000.00
7 Capacity Utilization of Manufacturing & Administrative Expenses :
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Capacity Utilization 70% 80% 90% 90% 90%
Manufacturing Expenses
Rawmaterials 4662000 5328000 5994000 5994000 5994000
Salary/ Wages 331800 379200 426600 426600 426600
Repairs & Maintenance 42000 48000 54000 54000 54000
Power & Fuel 67200 76800 86400 86400 86400
Other Overhead Expenses 25200 28800 32400 32400 32400
Administrative Expenses
Telephone Expenses 8400 9600 10800 10800 10800
Stationery & Postage 16800 19200 21600 21600 21600
Advertisement & Publicity 42000 48000 54000 54000 54000
Workshed Rent 96000 105600 115200 124800 134400
Other Misc Expenses 16800 19200 21600 21600 21600

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 PROJECT REPORT- MSME DEVELOPMENT INSTITUTE, CHENNAI

Total: 5308200 6062400 6816600 6826200 6835800

8 Assessment of Working Capital :

Particulars Amount in Rs.
Sale 15840000.00

Manufacturing Expenses
Raw Material 6660000.00
Salary/ Wages 39500.00
Repair & Maintenance 5000.00
Power & Fuel 8000.00
Other Overhead Expenses 3000.00

Production Cost 6715500.00

Administrative Cost 34000.00
Manufacturing Cost 6749500.00
Working Capital Estimate :

Element of Working Capital No of Days Basis Amount in Rs.

Raw materials 45 Material Cost 999000.00

Stock in process 40 Production Cost 895400.00

Finished goods 40 Manufacturing Cost 899933.33

Receivable by 40 Manufacturing Cost 899933.33

Total Working Capital Requirement Per Cycle 3694266.67

9 Financial Analysis
9.1 Projected Profit & Loss Account :
Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Sales / Receipts 11088000 12672000 14256000 14256000
Manufacturing Expenses
Rawmaterials 4662000 5328000 5994000 5994000
Wages 331800 379200 426600 426600
Repairs & Maintenance 42000 48000 54000 54000
Power & Fuel 67200 76800 86400 86400
Other Overhead Expenses 25200 28800 32400 32400
Depreciation 133500 120150 108135 97322
Production Cost 5261700 5980950 6701535 6690722

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 PROJECT REPORT- MSME DEVELOPMENT INSTITUTE, CHENNAI

Administrative Expenses
Telephone Expenses 8400 9600 10800 10800
Stationery & Postage 16800 19200 21600 21600
Advertisement & Publicity 42000 48000 54000 54000
Workshed Rent 96000 105600 115200 124800
Other Miscellaneous Expenses 16800 19200 21600 21600
Administrative Cost 180000 201600 223200 232800
Interest on Bank credit @ 0%
Term Loan interest 566759 510083 396731 317385
Term Loan installment 472299 944598 661219 528975
Working Capital Loan 398981 323174 323174 290857
Working Capital installment 332484 299236 269312 242381
Cost of Sale 7212223 8259641 8575171 8303119
Net Profit Before Tax 3875777 4412359 5680829 5952881
Less Tax (5%) 554400.00 633600.00 712800.00 712800.00
Net Profit 3321377 3778759 4968029 5240081

9.2 CALCULATION OF DEBT SERVICE CREDIT RATIO (D.S.C.R) :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Net Profit 3321377 3778759 4968029 5240081
Add :
Depreciation 133500 120150 108135 97322
TOTAL - A 3454877 3898909 5076164 5337402
Payments :
On Term Loan :
Interest 566759 510083 396731 317385
Installment 472299 944598 661219 528975
On Working Capital:
Interest 398981 323174 323174 290857
Installment 332484 299236 269312 242381
TOTAL - B 1770523 2077091 1650436 1379598
D.S.C.R = A/B
1.95 1.88 3.08 3.87
Average D.S.C.R 2.69

9.3 PROJECTED BALANCE SHEET :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
LIABILITIES :
Promoters Capital 524777 524777 524777 524777
Profit 3321377 3778759 4968029 5240081

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 PROJECT REPORT- MSME DEVELOPMENT INSTITUTE, CHENNAI

Term Loan 4722990 4250691 3306093 2644874

Working Capital Loan 3324840 2992356 2693120 2423808
Current Liabilities 0 0 0 0
Sundry Creditors 0 0 0 0
11893984 11546583 11492019 10833541
ASSETS :
Gross Fixed Assets : 1435000 1301500 1181350 1073215
Less : Depreciation 133500 120150 108135 97322
Net Fixed Assets 1301500 1181350 1073215 975894
Preliminary & Pre-Op. Expenses 50000 37500 28125 21094
Current Assets 3324840 2992356 2693120 2423808
Cash in Bank/Hand 7267644 7372877 7725684 7433839
Total 11893984 11546583 11492019 10833541

9.4 CASH FLOW STATEMENT :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Net Profit 3321377 3778759 4968029 5240081
Add : Depreciation 133500 120150 108135 97322
Term Loan 4722990 4250691 3306093 2644874
Working Capital Loan 3324840 2992356 2693120 2423808
Promoters Capital 524777 0 0 0
Total 12027484 11141956 11075377 10406085

Total Fixed Capital Invested 1553500

Repayment of Term Loan 472299 944598 661219 528975

Term Loan interest 566759 510083 396731 317385
Repayment of WC Loan 332484 299236 269312 242381
WC interest 398981 323174 323174 290857
Current Assets 3324840 2992356 2693120 2423808
Total 5095363 5069447 4343557 3803406

Opening Balance 0 6932122 859613 -5872208

Surplus 6932122 6072509 6731821 6602679
Closing Balance 6932122 859613 -5872208 -12474887

9.5 BREAK EVEN POINT AND RATIO ANALYSIS :

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year

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 PROJECT REPORT- MSME DEVELOPMENT INSTITUTE, CHENNAI

Fixed Cost 1352558 1776431 1389285 1176481

Variable Cost 5993165 6603360 7294021 7223959
Total Cost 7345723 8379791 8683306 8400441

Sales 11088000 12672000 14256000 14256000

Contribution (Sales-VC) 5094835 6068640 6961979 7032041

B.E.P in % 26.55% 29.27% 19.96% 16.73%

Break Even Sales in Rs. 621488 850735 678463 580322

Break Even Units 1883 2578 2056 1759

Current Ratio 1.88 1.44 1.63 1.76

Net Profit Ratio 29.95% 29.82% 34.85% 36.76%

This Project Report has been prepared based on the data collected during April-2018 for
information purpose only.
Place : Chennai Signature:
Date : 25/04/2018

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