Business

Loan Proposal

Prepared For:
Takiya Krishi Firm Pvt. Ltd.
Katahari VDC- 7, Morang

Prepared By:
Takiya Krishi Firm Pvt. Ltd.

Date: 20/10/2076
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Table of Contents

1. Executive Summary: .............................................................................................

2. Company Information: ........................................................................................................
2.1 Registration details
2.2 Objective of establishment ..................................................................................................
2.3 Members of the Company
3. Project Description ..............................................................................................................
3.1 Product ...............................................................................................................................
Feed formulation for swine ..................................................................................................
Feed formulation for Goats .................................................................................................
3.2 Location of the Entity ..........................................................................................................
3.3 Magnitude of Operation ......................................................................................................
3.4 Infrastructure for manufacturing ..........................................................................................
3.5 Human Resources ..............................................................................................................
4. Market ................................................................................................................................
5. Environmental Consideration ............................................................................................
6. Rationale............................................................................................................................
7. Working Capital..................................................................................................................
8. Profitability .........................................................................................................................
9. Projected financial statements ...........................................................................................
1. Summary:
Takiya Krishi Firm Pvt. Ltd. is an existing Agriculture and Poultry Farm located
at Katahari VDC-7, Morang, Nepal. Companies registered office will be at Katahari-
7,Morang. It is Registered Under the Companies Act, 2006. This Firm with a Capital
base of NPR 1,98,00,000 has commenced its operation from the year 2074-75.
With a fair co-operation between the members the unit has detailed its plan of
expansion of farming project in Fish, Egg laying chickens, Black/Local Chicken, Duck,
Buffalo Calf, swine (pig) and Cow.
Agriculture sector, contributing to more than one third of Gross Domestic
Product (GDP) and employing two-thirds of the country's labour force is central to the
livelihood of every Nepalese people. We in the firm, believe that the agricultural sector
is pivotal to increase income, alleviate poverty and uplift the living standard of the
Nepalese people. However, the performance of this sector has been inadequate to
meet the increasing food demand and livelihood needs of growing population in the
country. The aim of agricultural based least developed countries lies in reducing
poverty and resolving economic woes. As the country is taking a revolutionary turn
around in the agricultural sector, the unit has taken an initiative to contribute to the
agricultural sector and ultimately to the economy.
At present, it is focusing in the local market of Eastern region of Nepal.
Why Us?
Being a unit solely handled and operated by female entrepreneurs, the farm is an
example of female lead initiative in the eastern region of Nepal. Expanded in the 20
Bighas of land the firm holds immense opportunity to grow in size and in wealth in the
near future.
Managed by persons having proven experience in the agricultural farming it is
technically sound in all respects.The unit has considered it as a contributor to the
government’s agricultural development plan. For that, it has a strong and feasible
project which can be summarized below:

Area covered 20 Bighas

Fish Ponds 20
Fish Capacity 21500000
Egg Laying Chicken 5000
Black chicken and Local Chicken 1000
Duck 300
Buffalo calf 100
Swing (Pig) 50
Cows 10 (Initially)

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2. Company Information:

2.1 Registration details

Takiya Krishi Firm Pvt. Ltd is registered as a Private Limited under the Companies
Act, 2006 and has its registered office at Katahari-7, Morang Nepal.

2.2 Objective of establishment

The unit is incorporated with the objective of contributing to the agricultural sector in
multiple ways. Further, to enhance the income level of the farmers in the concerned
area to the extent possible.
2.3 Members of the Company
As per the Audit Report of the fiscal year ending 2075/76 certified by Auditor, the
members of the Firm has been detailed in the Table-1 below .

Table-1

Members
1 Nar Maya Bhattarai
2 Gita Devi Apagain(prasain)
3 Biddhya Kumari Khatiwoda

Note: All members are in equal partnership

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3. Project Description
The livestock farming business is growing rapidly as eggs, meats and other
agricultural products producers have started replacing traditional way of farming,
which aids to the tangible benefits in terms of yield improvements. Also, meat is an
important source of high quality proteins, minerals and vitamins to balance the human
diet. Specially developed varieties of fish, chicken are now available with the traits of
quick growth and high feed conversion efficiency.

3.1 Product
Fish Farming
Fish farming is known as aquaculture, that is, the breeding and rearing of fish. Fish
farming involves raising fish commercially in ponds, tanks or enclosures. The different
steps associated with fish farming are as follows
Choose The Right Fish Pond: Construct a suitable pond, after selecting your farm
area. Before constructing, make a good design and make the pond according to your
desired design. While designing the pond, ensure the availability of all types of
necessary facilities for maintaining a profitable fish farming business.

Suitable Fish Species and Get Healthy Juveniles: Selecting suitable fish species is
very important for maximizing profits form fish farming business. Select those breeds,
which have a huge demand and high price in your local market. The most important
fish species used in fish farming throughout the world are carp, salmon, tilapia and
catfish.
Feeding: Feeding is the most important part of commercial fish farming business.
There are three means of food for your fish.

 Natural fish feed. This is found naturally in the pond. This include; detritus,
bacteria, plankton, worms, insects, snails, aquatic plants and fish (yes, fish eat
fish if they`re hungry).

 Supplementary fish feed. This usually include cheap materials locally

available such as terrestrial plants, kitchen wastes or agricultural by-products.
Supplementary feed may be good, but they are not for serious fish farmer
(except if he includes the other types of feeds). Many people who are into fish
farming in Nigeria are using supplementary feeds. some to their profit, others to
their loss.
 Complete feed. This is a carefully made fish feed. They`re usually of good
ingredient and nutrients, made by the experts who understand the perfect
formula for the fish at a different stage.

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Fish Hatchery

A Fish hatchery is a place for artificial breeding, hatching, and rearing

through the early life stages of animals, finfish and shellfish in
particular. Hatcheries produce larval and juvenile fish, shellfish
and crustaceans, primarily to support the aquaculture industry where they are
transferred to on-growing systems, such as fish farms, to reach harvest size.
Some species that are commonly raised in hatcheries include salmon, tilapia,
etc. The value of aquaculture production is estimated to be rising in the
nepalese market. However, the value of aquaculture hatchery has yet to be
estimated. Additional hatchery production for small-scale domestic uses, which
is particularly prevalent in South-East Asia or for conservation programmes,
has also yet to be quantified.

This Takiya krishi firm pvt. Ltd. Palns to introduce a fish hatchery, for which
needed ponds and drains are already in a managed system. A Trust building of
5000 sq ft. will be built. The company needs to introduce other Hatching and
machinery equipments which are listed below:

Particulars Nos. sq. ft. ltrs.

Incubation 9 30000
Tank 3 70000
Spanning 1 100000
tank
Overhead
Tank
Conditioning 4 150.00
Generator 1
Boarding 1

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Layer Poultry Farming
Layers poultry farming means raising egg laying chicken for the purpose of
commercial egg production. Layer chickens are such a special species of hens,
which need to be raised from when they are one day old. They start laying eggs
commercially from 18-19 weeks of age. They remain laying eggs continuously
till their 72-78 weeks of age .Commercial layer strains are now available with
traits of high egg production and high feed conversion efficiency. High quality
chicks, equipment, vaccines and medicines are now available through both
public and private players. Technically and professionally competent guidance
is available to the farmers. The managerial practices have improved and
disease and mortality incidences are reduced to a great extent. The company
plans to introduce 5000 layer chicks at the initial stage.

Chicken –Black and Local

Kadaknath(Black chicken) is one of the rarest poultry breeds in Nepal. Black

chicken is famous for its meat quality, texture and taste. The demand is
growing day by day due to the excellent medical values of black chicken meat.
With a very high survival rate black chicken can aid to the generation of
revenue and provide higher yield.
The Farming of black chicken does not vary from the farming of local chicken.
Hence it can be integrated with local chicken farming. The average period of
growing black chicken and local chickens to a marketable weight is about 10-12
months.
More over the duck farming has also been considered as it can be raised with
ease along with chickens and Fish. Duck farming can also be considered as a
complementary farming of Fish.

Buffalo Calf and Pig Farming

Buffalo farming in Nepal is a profitable business. It has good potential source
for generating income and employment in community. Buffalo is a multi-
purpose animal. Commercial Buffalo Farming is to produce milk, meat, skin
and Manure. Demands of grass feed, Buffalo meat and organic dairy
products increasing rapidly all over the world because of its distinctive flavour.
For thousands of years man has raised buffalo for milk and meat in Nepal.
Now buffalo farming is an almost worldwide phenomenon. Buffalo milk
contains more butter fat. In this way price of buffalo milk is more. Buffalo is
strong then cows and least chance to surfing from diseases and easy to feed,

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grow and make the shelter. Base of economy of Nepal depend on agriculture
and there are lot of possibility in buffalo farming. Our buffalo eat green grass,
high quality hay, grazing on pasture and produce milk and meats supply on
market.
Similarly Pig Farming is the raising and breeding of domestic
pigs as livestock, and is a branch of animal husbandry. Pigs are farmed
principally for food (e.g. pork, bacon, gammon) and skins.
Pigs are amenable to many different styles of farming: intensive
commercial units, commercial free range enterprises, or extensive farming
(being allowed to wander around a village, town or city, or tethered in a simple
shelter or kept in a pen outside the owner's house). Historically, farm pigs were
kept in small numbers and were closely associated with the residence of the
owner, or in the same village or town. They were valued as a source of meat
and fat, and for their ability to convert inedible food into meat, and were often
fed household food waste when kept on a homestead. Pigs have been farmed
to dispose of municipal garbage on a large scale.
Owing to the demand of buffalo meat and pork, we have considered it
worthwhile to raise buffalo calf and pigs. Buffalo calf takes almost around 1
year an 3 months to reach the marketable weight for being slaughtered.
Similarly , pigs turn around time is 6-7 months.

Cow
Cow farming in Nepal is an ancient farming system still practiced
traditionally all over Nepal. Commercial cow Farming in Nepal is recently
introduce and becoming popular between farmers. Cow Farming is a source
for generating income of Nepali, peoples use to sell the milk on market
maximize benefits and survive their lives. With regards to the growing demands
of milk and having sufficient area for the purpose, cow farming has also been
considered. In the initial Phase 10 cows of holstein breed will be introduced.
They are capable of producing at least 10 ltrs of milk per day per cow.

Optimum 50 cows

The initially introduced 10 cows shall be extended till 50. The manure from
animals provides a good source of organic matter for improving soil fertility and
crop yields. The surplus fodder and agricultural by-products are gainfully
utilized for feeding the animals. Cow dung, manure, or feces is indigestible
plant material released on to the ground from the intestine of a cow. Feces is
generally not a favourite topic of conversation, whether it comes from an animal

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or a human. Cow dung is worth discussing, though. It's a useful material and
helps us in a variety of ways. It's also a plentiful and renewable resource. It's a
shame when it's wasted.Cow manure has a soft texture and tends to be
deposited in a circular shape, which gives dung patches their alternate names
of cow pies and cow pats. The manure is used as a rich fertilizer, an efficient
fuel and biogas producer, a useful building material, a raw material for paper
making, and an insect repellent. The manure also plays an essential role in the
lives of various animals, plants, and microbes, including dung beetles and the
Pilobolus fungus.

Vegetable Farming
Nepal is an agricultural country. There is fertile land and rich in wateral
resources . since Nepal is full of bio diversity, we can get all types of plant and
animals.
Our mission is to provide quality vegetable at fair price throughout the
market area as well as to protect the production of soil and ecosystem of the
planet.
In fact, we are producing the mostly consumed vegetable by Nepalese
consumers considering their test and preferences. The top money spinning
vegetables we are focusing are tomato, beans, cauliflower, radish, cabbage,
onions, garlic, brinjal, ladyfinger and carrot .vegetables aregenerated according
to season.
Warm season vegetables cool season vegetable
Tomato cabbage
Ladyfinger onions
Cucumber peas
cauliflower radish

The expenses incurred for production of vegetable are seeds, fertilizers,

irrigation, pesticides, labor charges . We use the cow dung as fertilizer that is
organic and doesn’t affect environment.

In conclusion, consumers get healthy, environment gets clean and green,

people get employed and we get profi .

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3.2 Location of the Entity
The unit is established in the Katahari VDC-7, which is at a distance of
approximately 18kms from Biratnagar city.
3.3 Magnitude of Operation
Fish makes up approximately 80% to 82% of the total revenue. In the 19 ponds
dug on around 17 bighas of land a total of 21,500,000 hatchlings could be
introduced. In spite of high mortality rate in fish farming, it is capable of
generating greater yield than others. The fish farm composition shall be as in

Table-1
Breeds Proportion
Rahu, Naini and Bhakur 40%
Common Carp and Grass Crap 10%
Big-head and Silver Carp 50%
70% of the fish shall be raised for short period for being sold as hatchlings to
other farms. While 30% shall be sold as fish for consumption. Being a
complementary farming 300 Ducks shall be introduced in the initial years which
might grow in future.
Eggs makes up about 9%-11% of revenue generation. A total of 5000 layers
chicken shall be introduced. They are capable of producing 90% of eggs per
day. The production and salable quantity has been conservatively forecasted
as in Table-2
Table-2
Production Year 1 Year 2 Year 3 Year 4 Year 5
Capacity Utilization (Eggs) 50% 90% 90% 90% 90%
In Unit 3,911 7,039 7,039 7,039 7,039
Sales( of Production) 98% 98% 98% 98% 98%
Units 3,832 6,898. 6,898. 6,898. 6,898.

500 each of Kadaknath and local chicken shall be introduced. As they can be
raised in similar fashion they shall be kept in a single shed. They have low
mortality rate and hence are considered fruitful in investing.
100 Buffalo calf and 50 Pigs shall be raised in shed constructed for them.
Availability of area, resources and the proven market we have planned to invest
in buffalo and pig.
Initially 10 Holstein cows shall be introduced having production capacity of at
least 10 ltrs of milk per day per cow. In the next year 5 more cows shall be
added.

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We have expected providing 15 days of credit periods to our customers so that
the customer base will be increased and further flexible period could be
provided on increasing the capacity utilization. Consistent with the similar
sector we have

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forecasted a minimum gross profit margin of 12%-14% and net profit margin
around 8%.
Similarly, on prior survey among existing suppliers it has come to our
knowledge that maximum 20 days of credit period is provided by the creditors.
we have assumed 18 days period in the initial year and maximum 8-10 days
thereafter so that materials availability could be increased as our credit being
more competitive.
3.4 Infrastructure for manufacturing
Land & Building:
The unit will be set-up in a lease-hold property. An expenditure will be made on
development of land and for constructing Fence to cover the entire area. In the
immediately coming year, 25 Kathha of land shall be purchased for the project.

Ponds:
20 Ponds shall be constructed for fish farming. 17 ponds has already been
constructed and the 18th is on progress.
Equipments:
A generator, Computer inverter and 12 CCTV cameras shall be installed in the
project area.
Vehicles:
For the transportation of input materials as well as the finished goods initially 2
vehicles one being Mahindra mini truck and other being TATA Ace is deemed
necessary. By the end of 4th year another pick up van has been expected to be
procured. As the production increases and we have planned to create our own
market for fish another vehicle should be bought to facilitate transportation.
3.5 Human Resources
We expect to invest in good team and fairly compensate them. Workforces
required for the purpose shall be recruited from local community itself.
However, in case of lack of skilled work force in Nepal, they might have to be
hired. It is prudent to assume necessity of 9 workers an accountant an admin
manager 2 drivers and a Security guard. Apart from those a vet technician
having sound knowledge of livestock farming shall be hired for at least a visit
per month and.

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 Table-3
Particulars Nos.
Workers 9
Vet Technician 1
1
Accounts and Admin
Driver 2
Security 1
Manager 1
Total 15
Table-4

S.No. Description UOM Quantity Rate Investment Notes

(Rs.)
1 Land & Land
Developments
1.1 Land Development Bigha 20.00 320,000 6,400,000 Ponds Digging
(Earthing, Cutting, and Land
Filling, Leveling, Development
Protection, Plantation)
1.2 Purchase Kathha 25.00 240,000 6,000,000
Sub Total (A) - 12,400,000
2 Building & Civil
Construction
2.1 Shed Constructions Sq Ft 4,430 886 3,924,700 Layers chicken

2.2 Shed Constructions Lumpsum 890,000 Chickens and

ducks
2.3 Shed Constructions Lumpsum 1,000,000 Calf and Pigs
2.4 Shed Constructions Lumpsum 400,000 Cow Shed
2.5 Fence Construction Lumpsum 1,800,000 For the entire
Project Area
2.6 Office Building Sq Ft 1,080 1,200,000 Administrative
Water Tank LTR 50,000 850,000 For Livestock
as a whole
2.7 Incuvation Tank 8,241,934 For Fish
Hatchlings
Total 18,306,634

3 Machinery and Units Rate Amount

Equipments
3.1 Generator 2 790,000 1,580,000
3.2 Computer 1 65,000 65,000
3.2 Inverter 1 160,000 160,000
CCTV 12 100,000

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 Total 1,905,000
4 Vehicle 2 4,650,000
5 Furnitures & Fixtures Lumpsum 150,000
Total 37,411,634

6 Biological Assets Unit Rate Amount

6.1 Chicken (layers) 5000 60 300,000
6.2 Chicken (local) 500 90 45,000
6.3 Chicken (Black) 500 200 100,000
6.4 Chicken (Ducks) 300 100 30,000
6.5 Cows 30 100000 3,000,000
6.6 Buffalo Calves 100 15000 1,500,000
6.7 Fish Parents For Fish 825 650 536,250
Hatchings
6.8 Fish Parents For Fish 340 450 153,000
Hatchling
6.9 Pigs 50 4000 200,000
Total 5,864,250

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4. Market
The firm aims to gradually market its products in every nooks and corners of
eastern region. It aims to provide good values to the consumers and has
planned to distribute fish in the market through own outlets in the near future.

5. Environmental Consideration
5.2 Hazardous and Solid waste Management
There will be no generation of any hazardous waste for the proposed project.
Total Solid Waste Generated from the proposed facility is expected to be less
than 4 Kg/ Day and the same will be disposed properly having regards to the
environmental consideration.
The manure could be used as well as sold as fertilizers.
5.3 Fire Fighting System Description
Following are the type of fire protection systems for proposed plant,
 Portable Fire Extinguishers.
 Personnel Health & Safety Equipment.

6. Rationale
The demand of fish and meats has been increasing day by day. In Nepal
maximum proportion of fish is imported from India. Even the buffalo are being
imported .
We have considered the immense opportunity of fish , eggs and meat market in
Nepal. As, there is still a big gap between demand and local supply. As more
and more people are being conscious about health, fresh fish and meat are in
tremendous demand.
Moreover, the encouragement provided by the Government has motivated us to
take the initiative.

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7. Working Capital

The Co-operative envisions following working capital plan/cycle:

 Closing Stock: The fish stock shall cover the maximum proportion of
closing stocks. As it consumes maximum of the materials its value is
also high. However the high mortality has also to be taken into account

 Debtors: We have expected providing 15 days of credit periods to our

customers so that the customer base will be increased and further
flexible period could be provided on increasing the capacity utilization

 Sundry Creditors: Similarly, on prior survey among existing suppliers it

has come to our knowledge that maximum 20 days of credit period is
provided by the creditors. we have assumed 18 days period in the initial
year and maximum 8-10 days thereafter so that materials availability
could be increased as our credit being more competitive.

8. Profitability
Consistent with the similar sector we have forecasted a minimum gross profit
margin of 12%-14% and net profit margin around 8%. .

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9. Projected financial statements
Detailed projected financial statements prepared considering the project’s
operation based on the assumptions discussed and relevant details are
attached as annexure to the documents as follows:

INDEX
S Particulars Ref.
No
1 Estimated Total Investments and fund Annex-
requirements 1
2 Projected Income & Expenditure Statement Annex-
2
3 Projected Balance Sheet Annex-
3
4 Projected Cash flow statement Annex-
4
5 Schedules to Financial Statements Annex-
5
6 HR Details Annex-
6
7 Capacity Utilization Details Annex-
7

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