M/s Vaibhave_Business plan_V.

01

M/s Vaibhave Enterprises

ANIMAL HUSBANDRY POULTRY & VEGETABLE NURSERY

Business Plan
M/s Vaibhave Enterprises 2-42/11, OM Complex, Chaitanya puri, Dilsukhnagar Hyderabad, Andhra Pradesh.

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M/s Vaibhave_Business plan_V.01 Business Plan

COMPANY INFORMATION
S.No

01. 02. 03.

Particulars Company Status Corporate Office

Details M/s Vaibhave Enterprises Partnership firm registered under the Indian Partnership Act with the registrar, Hyderabad AP. Corporate Office : 2-42/11, OM Complex, Chaitanya puri, Dilsukhnagar, Hyderabad, Andhra Pradesh. In 48 Acres, Maheshwaram, Gafoornagar, Hyderabad, Andhra Pradesh. www.vaihave.com Managing Partner Mr.K. Rama Rao Partner Mrs. K.Lakshmi C.V.R.Murthy BCom.,FCA Chartered Accountants, Hyderabad 500 082 M/s Matrix Consulting Rajbhavan Road, Somajiguda Hyderabad e-mail : matrixconsulting@in.com M/s State Bank of Hyderabad, Dilsukhnagar branch, Hyderabad. Poultry / Milch Animal & Vegetable Nursery Agriculture Agriculture Processing Belongs to existing profit making Group in the business of running fine dining restaurants Project Cost : Rs 550.00 lakhs Term Loan Rs 500.00 lakhs Equity Capital Rs 50.00 lakhs 10 : 1 1.84 3 years 149 Personnel 500 Firm Commission agents net work in places 45% Proven technology, promoters having experience

Project Complex 04. 05. 06. 07. Web Site Management Statutory Auditors Finance Consultants

08. 09. 10. 11. 12. 13 14. 15. 16. 17. 18. 19. 20 21. 20.

Bankers Business Industry Status Highlights Cost of the Project Means of Finance Debt Equity ratio DSCR Payback period Direct Employment Indirect Employment Marketing Relationships Break Even Capacity Technology

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Mr. Rao is now setting up a Agricultural Complex at Maheshwaram in 48 Acres of land at a Project cost of Rs 550 lakhs. Now he is seeking term loan of Rs 500 lakhs for the project and this report depicts the business plan and the design of the project, its components, Profitabilitys and repayment capacity of the firm towards the proposed Term loan.

The Proposed Agricultural complex would contain : 62500 Capacity poultry farm 200 Milch Animals husbandry 30 Acres of most modern Organic Nursery to raise seedlings and planting materials of modern commercial vegetables such as Cabbage, Cauliflower, Tomato & Ornamentals.

Location of the Agricultural Complex : The complex of the above projects is proposed to be located in 48 acres of land at Maheshwaram, Gaffornagar, Hyderabad. The location is leading to ORR i.e 3kms (Outer Ring Road). Only 9 kms away from the Rajiv Gandhi International Airport at Shamshabad. It is located 12 kms from proposed Hardware and Gem Parks. It is only 7 kms from Fab City. It is well connected with twin cities. An ancient temple of Lord Shiva with a picturesque surroundings in the vicinity. Mahidhara Central is located near to many emerging business establishments. Only 10 minute drive to Fab City and Rajiv Gandhi Nano-Technology Park. 20 min drive from the site of proposed US Consulate at Gachibowli. Located very near to proposed TCS Adibatla and 650 acre Golf Course. Vitally connected to IT giant establishments like Microsoft, Wipro and many more at Madhapur. Outer Ring Road at the fleeting distance of 4 kms. The details of the proposed operation is depicted underneath to have a understanding of the project and its revenue generation and repayment capacity to clear off the term loans proposed.

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Unit 1 - Poultry
Poultry egg and meat are important sources of high quality proteins, minerals and vitamins to balance the human diet. Specially developed breeds of egg type chicken are now available with traits of quick growth and high feed conversion efficiency. Depending on the farm-size, layer (for eggs) farming can be main source of family income or can provide income and gainful employment to farmers throughout the year. Poultry manure has high fertilizer value and can be used for increasing yield of all crops. Poultry ind ustry which provides cheap source of animal protein has taken a quantum leap in the last three decades evolving from a near backyard practice to a venture of industrial promotion. Poultry is one of the fastest growing segments of the agricultural sector in India today. While the production of agricultural crops has been rising at a rate of 1.5 to 2 percent per annum that of eggs has been rising at a rate of 8 percent per annum. India is on the world map as one of the top five egg producing countries with 85.6 billion eggs produced during 2009 (FAO). The poultry sector in India has undergone a paradigm shift in structure and operation. This transformation has involved sizable investments in breeding, hatching, rearing and processing. Farmers in India have moved from rearing non-descript birds to rearing hybrids which ensures faster growth, good liveability, excellent feed conversion and high profits to the rearers. High quality chicks, equipment, vaccines and medicines are available. Technically and professionally competent guidance is available to the farmers. The management practices have improved and disease and mortality incidences are reduced to a great extent. The industry has grown largely due to the initiative of private enterprise, minimal government intervention, considerable indigenous poultry genetic capabilities and adequate support from the complementary veterinary health, poultry feed, poultry equipment and poultry processing sectors. The industry has created direct and indirect employment for 3 million people. 1.1 Transformation from a Backyard Activity to a Major Commercial Activity The poultry sector in India has undergone a paradigm shift in structure and operation. A significant feature of India's poultry industry has been its transformation from a mere backyard activity into a major commercial activity in just about four decades. This transformation has involved sizeable investments in breeding, hatching, rearing and processing. Farmers in India have moved from rearing non-descript birds to today rearing hybrids such as is Hyaline, lt is Shaver, ll and in Babcock, lt which ensure faster growth, good livability, excellent feed conversion and high profits to the rearers. The industry has grown largely due to the initiative of private enterprise, minimal government intervention, considerable indigenous poultry genetics capabilities, and considerable support from the complementary veterinary health, poultry feed, poultry equipment, and poultry processing sectors. India is one of the few countries in the world that has put into place a sustained Specific Pathogen Free (SPF) egg production project.

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M/s Vaibhave_Business plan_V.01 1.2 Regional Variation in Poultry Development Another important aspect of poultry development in India is the significant variation in the industry across regions. The four southern states - Andhra Pradesh, Karnataka, Kerala and Tamil Nadu account for about 45 percent of the country's egg production, with a per capita consumption of 57 eggs and 0.5 kg. of broiler meat. The eastern and central regions of India account for about 20 percent of egg production, with a per capita consumption of 18 eggs and 0.13 kg. of broiler meat. The northern and western regions of the country record much higher figures than the eastern and central regions with respect to per capita availability of eggs and broiler meat. Table eggs and broiler meat are the major end products of the poultry sector in India. Presently production of eggs is estimated to number about 37 billion, that of broilers 895 million, and that of poultry meat 735,000 tonnes. In addition, organized facilities have been set up over the years for the manufacture of egg powder and frozen, processed broiler meat essentially to cater to export markets and markets in the metropolitan areas of India. 1.3 Increasing Scale of Operation The growth of the poultry sector in India is also marked by an increase in the size of the poultry farm. In earlier years broiler farms had produced on average a few hundred birds (200-500 chicks) per cycle. Today units with fewer than 5,000 birds are becoming rare, and units with 5,000 to 75,000 birds per week cycle are common. Similarly, in layer farms, units with a flock size of 10,000 to 50,000 birds have become common. Small units are probably finding themselves at a disadvantage because of high feed and transport costs, expensive vaccines, and veterinary care services and the non-availability of credit. Some small units are reported to be shifting from layer to broiler production because output in broiler units can be realized in six weeks. 1.4 Concentration of Poultry Units Around Cities and Urban Centers There has also been a growing tendency for poultry units to be concentrated around urban areas because of the existence of ready markets for the end products of poultry production. 1.5 Low Per Capita Consumption Even though India is the world's fifth largest egg producer and the eighteenth largest producer of broilers, its per capita consumption of these products is poor - 37 eggs and 1 kg. of poultry meat per capita per annum. Here, again, there is considerable variation in per capita consumption between rural and urban areas and also across the region. Per capita consumption of eggs is only 7.7 per annum in rural areas compared with 17.8 per annum in urban areas. In seven states, per capita consumption is less than 3.5 per annum. Similarly, per capita consumption of poultry meat is 0.24 kg. in rural areas and 1.08 kg. in urban areas.

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M/s Vaibhave_Business plan_V.01 1.6 Exports Exports of poultry products from India comprise table eggs, meat, live birds and value-added products such as egg powder and frozen yolk. The value of aggregated exports was Rs. 1,683 million in 1996-97. Exports were expected to reach the level of Rs. 5 billion by the year 2000. 1.07 Employment Three decades ago, when egg and broiler production was 10 billion and 30 million, respectively, the total employment numbers in the poultry sector were not so encouraging. As income and employment in the crop sector started diminishing, the non-crop sector, which includes dairy and poultry, underwent a significant shift. With the demand for poultry increasing and production reaching 37 billion eggs and 1 billion broilers, this sector now employs around 1.6 million people. At least 80 percent of employment in the poultry sector is generated directly by these farmers, while 20 percent is engaged in feed, pharmaceuticals, equipment and other services required by the poultry sector. Additionally, there may be a similar number of people roughly 1.6 million who are engaged in marketing and other channels servicing the poultry sector.

Present Poultry project by M.s Vaibhave Enterprises

M/s Vaibhave Enterprises is establishing a 62500 poultry farm at Maheshwaram, Gafoornagar, Hyderabad, Andhra Pradesh Modern with well established scientific practices used to obtain maximum economic benefits from poultry farming. Some of the major norms and recommended practices are given below:

CAPEX of 62500 Layer Birds

Particulars Construction of brooder cum grower house Construction of layer house Purchase of brooder cum grower equipment Purchase of layer equipment Total (I) II. Recurring Expenditure Cost of day old chicks Cost of feed upto 25% laying Cost of medicines & miscellaneous expenses upto laying Insurance of sheds and equipment Insurance of birds Total (II) Grand Total (I+II) Amount Rs. 3000000 5100000 510000 2500000 11110000 945000 7140000 510000 58750 236250 8890000 20000000

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Poultry Techno economic parameters

Number of birds Number of batches Batch strength Birds purchased per batch Birds considered for brooding cum growing Birds considered for laying Birds considered for culling Floor space per bird in brooder cum grower house (deep litter system) - sft per bird Floor space per bird in layer shed (cage system) - sft per bird Cost of construction of shed (Rs. per sft) Cost of brooder cum grower equipment (Rs. per bird) Cost of cages for layers (Rs. per bird) Cost of day old chick (Rs. per bird) Feed requirement upto laying, i.e. 20 weeks (kg per bird) Feed quantity capitalized (kg per bird) for first two batches- 8.5 kg upto laying and 1.5 kg for initial laying period Feed requirement during laying (kg per bird) - 52 weeks laying Cost of chick and grower mash (average price Rs. per kg) Cost of layer mash (Rs.) Medicines, vaccines, labour and misc. charges (upto laying) - 20 weeks (Rs.) Medicines, vaccines, labour and misc. charges (laying) - 52 weeks (Rs.) Insurance per bird (Rs. per bird) Insurance of sheds and equipment( Rs. per thousand) Egg production per bird (No.) Sale price per egg (Rs.) Sale price of culled bird (Rs.) Manure production (chicks) - kg per bird per week Manure production (layers) - kg per bird per week Sale price of manure (Rs. per ton) Sale price of gunny bags (Rs. per bag) 62500 3 21000 21500 21000 10000 10000 1 0.85 120 20 50 18 8.5 10 40 14 12 10 25 4.5 5.05 300 2.35 60 0.2 0.5 300 10

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Profitability Statements of Poultry

Item / Year Income Sale of eggs Sale of culls Sale of gunny bags Sale of manure 16099750 0 194063 2011-12 2012-13

INR
2013-14 2014-15 2015-16 2016-17

38978375 3375000 367188 507750 43228313 1181250 7586250 26538469 637500 1382219 70125 295313 37691125 5537188

41520438 3375000 375625 524406 45795469 1181250 6448313 28269219 541875 1472344 70125 295313 38278438 7517031

38978375 1687500 356250 496281 41518406 1181250 6448313 26538469 541875 1382219 70125 295313 36457563 5060844

38978375 3375000 356250 496281 43205906 1181250 6448313 26538469 541875 1382219 70125 295313 36457563 6748344

38978375 3375000 363438 503938 43220750 590625 7206938 26538469 605625 1382219 70125 295313 36689313 6531438

254625 Total 16548438 Expenditure Cost of day old chicks 1181250 Cost of feed upto laying 7586250 Cost of feed during laying 10961531 Cost of medicines, labour & 637500 misc. expenses upto laying Cost of medicines, labour & 570906 misc. expenses during laying Insurance of sheds & 70125 equipment Insurance of birds 295313 Total 21302875 Profit / Loss (4754438)

Flock chart Years No. of batches purchased No. of brooder cum grower weeks No. of layer weeks No. of batches culled

1 3 40 38

2 3 40 92 2

3 3 34 98 2

4 3 34 92 1

5 3 34 92 2

6 3 38 92 2

7 3 36 96 2

8 3 34 94 1

9 3 34 92 2

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Common Management Practices for poultry farm:

Poultry Housing:
Select well raised land for poultry sheds. Land with hard rock or murram is more suitable. Avoid water logging and flooding near the sheds. Ensure adequate facility for water, electricity, approach road, supply of chicks, feed, veterinary aid and nearness to market for sale of live birds and dressed chicken. Obtain training/experience in broiler farming before starting a farm. You should be prepared to stay on the farm and have constant supervision. Provide adequate floor space, feeding space and watering space per bird (see details in Annexure III). BIS specifications for construction of poultry sheds are available. way that the end walls Construct sheds in such a face East-West direction and the side walls face North-South direction, so that rain water will not enter the sheds. Provide strong roof and hard flooring. Raise plinth of the shed at least one feet above the outside ground level. Provide 3 to 4 feet overhang of the roof to avoid entry of rainwater inside the shed. Provide at least 50 feet distance between two sheds. Provide adequate light and ventilation and comfortable housing conditions during all seasons (cool in summer and warm in winter). Construct sheds in such a way that predators (cats/dogs/snakes) will not enter the shed. Avoid entry of rats by constructing rat proof civil structures. Keep the shed clean and free from flies/mosquitoes etc. After disposal of every batch of birds the dirty litter material and manure should be removed, walls and floors should be cleaned, white washed with lime and disinfected with 0.5% malathion or DDT insecticide spray. If deep litter system is followed, always use dry and clean litter material (sawdust, paddy husk, etc.). Spread 4" layer of litter on the floor, keep clean/disinfect brooding, feeding and watering equipment and then introduce chicks in the house. The litter material should be always kept loose and dry. Stir the litter twice a week. Any wet litter/droppings etc. should be removed and replaced with fresh/clean dry litter.

Poultry Equipment:
Use scientifically quipment for brooding, purposes. BIS are available. A good manufactured locally, so designed cages and e feeding and watering specifications for equipment design can be shown and that cost can be reduced.

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Chicks:
Purchase of improved strain broiler type chicks from a Usually 2-5% extra chicks are Clean, wash and disinfect all malathion spray after every disposed off. of one day old healthy reputed hatchery. supplied. equipments with 0.5% batch of birds is

Feeding:
Use high quality balanced feeds. With proper knowledge/experience, the feed can be prepared at the farm. Feed requirement s of birds are shown in Annexure IV. BIS feed formulae and specifications are available. Composition of some of the practical broiler diets is given in annexure Store the feed in clean, dry, well ventilated room. A wet feed may bring fungus infection. Use properly designed feeders and control the rats to avoid feed wastage. Keep proper records on feed consumption per bird for each batch. Compare with the standard feed consumption pattern. Too low feed consumption may be due to disease condition, low quality/unpalatability of feed, high temperature in poultry shed.

Watering of Birds:
Always give fresh and clean drinking water. Water should be always available at birds. Use properly designed watering equi pment. Provide adequate watering space per bird Always keep water-pots clean. Avoid birds entering inside pots. Provide cool water during summer. Store the water in tanks that are not exposed to hot sun in summer.

Disease Prevention/Control:
Clean sanitary conditions of poultry sheds and equipment, balanced feed, fresh clean water, healthy chicks are essential to prevent diseases. Avoid entry of visitors to farm, especially inside the sheds. If visitors come, ask them to dip their feet in a disinfectant solution, wash and clean hands and to wear apron/boots provided by the farm.

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Use proper vaccination schedule

Use high quality vaccines purchased from reputed manufacturers. Keep vaccines in cool, dry conditions away from sunlight. Any left-over vaccine should be properly disposed off. Vaccines should not be used after their expiry date is over. Any dead bird should be immediately removed from the shed and sent to laboratory for post-mortem or buried/burnt suitably away from the poultry sheds. The waste of farm should be suitably disposed off. Any bird showing advanced signs of a disease, should be removed from the shed and culled. It can be sent to laboratory for diagnosis. Birds showing advanced signs of a disease should be shown to a qualified veterinarian and suitable medication/treatment be given as per his/drug manufacturers recommendations. Poultry manure, if infected, can spread disease, from one batch to another. Keep the litter dry, remove it after flock is sold and dispose the manure properly and quickly. Keep proper records on mortality and its causes and the treatment given to birds. Dates of vaccination for each flock should be properly recorded. Rats are important carriers of poultry disease. Avoid rats. Use suitable rat poisons/rat traps. Many poultry medicines can be given in drinking water. When medication is to be given, remove the waterers in poultry sheds on the previous evening. Next morning give medicine in measured quantity of water, so that entire medicine will be quickly consumed and there will be no wastage of medicines. Mild infection of disease may not cause mortality but it will reduce growth. Keep sample record of body weight and mortality rate. Study the possible causes, if weight is low take steps to improve the management of the subsequent batches. A Constant vigil and analysis of records/results is necessary to keep up the efficiency in farming.

Processing / Marketing:
Ensure the constant and steady demand for broiler meat is available and the market is nearer to the farm. Study the market demand for particular live weight of the birds. Birds should not be kept on the farm beyond 6-7 weeks of age, as their feed efficiency will go down considerably. If birds are sold after dressing (processing) use clean dressing hall and processing equipment. Dressed birds should be chilled in the ice-cold water for 3-4 hours and excess water removed. Birds should then be packed in clean plastic bags and the mouth of bag sealed. Processed birds should be marketed as early as possible. If they have to be preserved, deep freezing equipment (-10 to -200C) be used. Refrigerated vans may be required for long distance transportation.

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Unit 2 Milch Animals

Dairying is an important source of subsidiary income to small/marginal farmers and agricultural labourers. The manure from animals provides a good source of organic matter for improving soil fertility and crop yields. The gobar gas from the dung is used as fuel for domestic purposes as also for running engines for drawing water from well. The surplus fodder and agricultural by-products are gainfully utilised for feeding the animals. Almost all draught power for farm operations and transportation is supplied by bullocks. Since agriculture is mostly seasonal, there is a possibility of finding employment throughout the year for many persons through dairy farming. Thus, dairy also provides employment throughout the year. The main beneficiaries of dairy programmes are small/marginal farmers and landless labourers. The total milk production in the country for the year 2008-09 was estimated at 108.5 million metric tonnes and the demand is expected to be 180 million tonnes by 2020. To achieve this demand annual growth rate in milk production has to be increased from the present 2.5 % to 5% . Thus, there is a tremendous scope/potential for increasing the milk production through profitable dairy farming. Buffalo are members of the bovine group of animals. They are cloven footed ruminants with four teats. Buffalo can not interbreed with cattle. There are two species of buffalo. The African Buffalo (Syncerus) which are wild and Asian Buffalo (Bubalus) which for the most are domesticated (Bubalus bubalis). Within the Asian Buffalo there are two distinct types ~ Swamp and River buffalo. Swamp buffalo tend to be indigenous to those parts of Asia which do not have a great culture from drinking milk or eating milk based products. This covers Indonesia northwards to China. River buffalo tend to be found in those countries where milk plays a more important part in the human populations diet. The range of this from India through Pakistan into the middle east round the Caucasus and into the Balkans. River buffalo are primarily a triple purpose animal producing milk, meat and draught power, whilst the swamp buffalo are kept in the main for meat and draught. Buffaloes vary greatly in size. The single greatest reason for this variation is environmental. In areas where animal feed is scarce then animals tend to be smaller than in those where it is more plentiful. Typically adult females can range anything between 350kg, high in the Himalayans, to 800kg in Bulgaria and Italy. As buffalo are capable of surviving on very little they are often fed very little! . Latest estimates of the world population of water (domestic) buffaloes is around 150,000,000 animals in 50 countries worldwide.

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Husbandry & Management

Buffalo are generally very docile and easy to handle. They rarely show aggression to people but can be very aggressive to one another. In general the husbandry of buffalo is not that dissimilar to that of cattle. A buffalo is capable of breeding throughout the year and having a calf every year. They carry their calf for 10 months; twin calves and calving difficulties are very rare. Buffaloes are very hardy and tolerant of Indian weather conditions. They are extremely disease resistant. Calves especially rarely suffer from pneumonia or non-nutritional scours. Lameness and clinical mastitis is also rare in adults. Prolapse, vaginal and uterine, are the only major health problem effecting buffaloes. The reasons for this are unknown. Longevity is an important feature of Buffalo. Even in large herds (300+) it is not uncommon to find animals well over 20 years old still being milked next to freshly calved heifers. Higher intelligence levels of Buffalo, compared to cattle can cause problems such as willful destruction of hedges and gates. However a single strand of high tensile electric fence or a "R" pin on a gate hanger will soon solve these problems. While Buffalo love to wallow in water it is not necessary to provide them with a facility to do so. De-horning is not recommended as the horns provide a mechanism for body heat loss. Housing, provided it is well constructed, can be loose yard or cubicles. Traditionally Buffalo have been fed poor quality forage as they have the ability to convert this to meat or milk. This fact should not be overlooked when formulating a diet. By increasing the quality of a ration will not necessarily be beneficial. As a rough guide a buffalo will consume 2.5% of its body weight as a daily dry matter intake. In general stocking rates for buffalo can be 10-20% higher than for cattle. Buffalo prefer to graze a shorter sward to cattle, nearer to that for sheep. Nitrogen inputs have been significantly reduced on most farms where they have switched to buffalo rearing.

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Heat detection in Buffalo can be very difficult. For that reason very little artificial insemination is carried out. However, the technique is similar to cattle. We recommend that if you do AI this is carried on synchronized animals using estrumate or prids. The retention rate with prids is lower than in cattle. This is mainly due to other buffalo pulling them out via the strings ~ so cut these short. The success rates with AI are quiet variable. In the UK high (>90%) conception rates can be achieved in the winter (especially February and March) whilst they can be disappointingly low ( <10%) in the summer months.

Milk Production
The smooth creamy texture of buffalo milk makes it ideal for many types of dairy product. The high levels of solids make processing very much more cost effective when compared to cows milk. Comparison of Buffalo & Cows Milks Buffalo Butterfat % Protein % Cholesterol Colour Texture Taste Cell Counts Yield/Lact'n Kg 8.0% 4.5% 8mg Pure white Smooth Sweet Very low 1850 Cows 3.9% 3.3% 14mg Creamy Less smooth Salty Higher 5500

Demand for buffalo milk, high in calcium and protein yet lower in cholesterol is very strong. In India the milk is used to make a range of products including mozzarella, matured cheese, yogurts, ice creams, khoa and drinking milks. Milking can be carried out in conventional cattle milking parlours, with little or no modification. Buffalo are more difficult to parlour train than cattle, especially when buffalo milking commences for the first time on a farm. This can be very frustrating at first, but becomes less of a problem when subsequent batches are introduced. In fact, experiences at the Sercaia Herd indicate that after 10 years the homebred heifers may even be easier to train than cattle heifers! Milk letdown can be a problem, especially if an animal is stressed. Oxytocin (<1.0ml) cures this problem, but care should be taken to ensure animals do not become dependent on it.

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Rearing of Milch Cattles Buffalo

Freshly calved animals in 1st or 2nd lactation are purchased in two batches of five animals each at an interval of 5 to 6 months. Cost of rearing calves not considered as it will be nullified by their sale value or retention value. Fodder cultivation considered in two acres and working capital for one crop / season considered. Two crops considered per year.

Feeding Schedule Per Day

Lactation Price (Rs.) Concentrate Feed Green Fodder Dry Fodder Total LACTATION CHART Years Lactation Days Dry Days Gunny Bags available for sale 1 2100 625 171 2 2425 1225 208 3 2425 1225 208 4 2425 1425 196 5 2200 1450 195 6 2425 1225 200 7 2425 1075 195 8.00 Home grown 1.50 Qty. (kg) 4 25 4 Cost Per Day (Rs.) 32.00 0.00 6.00 38.00 Qty. (kg) 1 20 5 Dry Cost Per Day (Rs.) 8.00 0.00 7.50 15.50

DAILY OPERATIONS SCHEDULE Approximate time (hours) 03.00 - 03.30 03.30 - 05.00 05.00 - 05.30 S. No Farm operations 1. 1. 2. 1. 2. 1. 2. 3. 4. 5. Cleaning/brushing of milch animals Feeding half of the daily concentrate ration just before milking. Milking the animals Delivery of raw milk (in cans) to the milk pick-up van of dairy plants and receiving previous day's empty cans. Washing and disinfection of milking barns. Cleaning of milk animals sheds. Feeding of dry/green fodder to milch stock. Cleaning farm premises. Isolation of sick animals. Isolation of "in-heat" for artificial insemination

05.30 - 08.00

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CAPEX Cost 200 Buffalo Milch Animal Unit

A. Project Cost Land Cost of milch animals including transportation cost Cost of construction of shed for adult animals Cost of construction of shed for calves Cost of chaff cutter Cost of equipment Capital cost Cost of concentrate feed for first batch for first month Cost of fodder cultivation in 20 acres Insurance of first batch of milch animals Recurring cost Working Capital Total cost Rs. leased 7240000 1800000 150000 75000 240000 9505000 96000 180000 240000 596000 1000000 11617000

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Techno economic parameters

Type of Animal No. of Animals Cost of Animal (Rs./animal) Transportation Cost/Animal Average Milk Yield (litre/day) Floor space (sqft) per adult animal Floor space (sqft) per calf Cost of construction per sqft (Rs.) Cost of chaff cutter (power operated) (Rs.) Cost of equipment per animal (Rs.) Cost of fodder cultivation (Rs./acre/season) Insurance premium (% per annum) Veterinary aid/animal/ year (Rs.) Cost of concentrate feed (Rs./kg) Cost of dry fodder (Rs./kg) No. of labourers Salary of labourer per month (Rs.) Cost of electricity and water/animal/year (Rs.) Margin (%) Rate of interest (%) Repayment period (years) Selling price of milk/litre (Rs./kg) Sale price of gunny bags (Rs. per bag) Lactation days Dry days Graded Murrah Buffalo 200 35000 1200 8 60 20 150 75000 1200 4500 5 250 8 1.5 1 3000 150 15 12 6 16.5 10 270 150

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Milch Animal husbandary Projected profitability Statements

Years Period A. Income : Export 'Sales Sale of Milk Total Income (-) Excise duty Net Sales B. Expenditure Fodder Cost ( agriculture ) Cost of Dry fodder Concentrated Feed Cost Utilities ( water & transportation) Salaries and Wages Power & Fuel charges Maintainence Depreciation Total Cost of Production Opening Stock of F G Closing Stock of F G Cost of Sales Gross Profit 2011-12
12 Months

2012-13
12 Months

2013-14
12 Months

2014-15
12 Months

2015-16
12 Months

Rs lacs 2016-17
12 Months

0.00 71.28 71.28 0.00 71.28 0.90 1.10 5.84 4.50 7.20 3.60 2.00 0.00 25.14 0.00 0.00 25.14 46.15 6.00 0.00 0.00 6.00 40.15 0.00 40.15

0.00 74.84 74.84 0.00 74.84 0.95 0.00 6.13 0.00 7.56 3.78 2.67 0.00 21.09 0.00 0.00 21.09 53.76 6.30 0.00 0.00 6.30 47.46 0.00 47.46

0.00 78.59 78.59 0.00 78.59 0.99 0.00 6.44 0.00 7.94 3.97 2.67 0.00 22.01 0.00 0.00 22.01 56.58 6.62 0.00 0.00 6.62 49.96 0.00 49.96

0.00 82.52 82.52 0.00 82.52 1.04 0.00 6.76 0.00 8.33 4.17 2.67 0.00 22.98 0.00 0.00 22.98 59.54 6.95 0.00 0.00 6.95 52.59 0.00 52.59

0.00 86.64 86.64 0.00 86.64 1.09 0.00 7.10 0.00 8.75 4.38 2.67 0.00 23.99 0.00 0.00 23.99 62.65 7.29 0.00 0.00 7.29 55.36 0.00 55.36

0.00 90.97 90.97 0.00 90.97 1.15 0.00 7.45 0.00 9.19 4.59 2.67 0.00 25.06 0.00 0.00 25.06 65.91 7.66 0.00 0.00 7.66 58.26 0.00 58.26

Indirect Expenses
Selling, General & Adm Exp Interest on Term Loan Interest on Working Capital Total Indirect Cost Profit before Taxes Provision for Taxation Profit after taxes

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Unit 3 Vegetable Organic Nursery

The M/s Vibhave Nursery Project is implemented with the overall objective of contributing to improved quality of key natural resources in areas of Andhra Pradesh that are both environmentally and economically significant. to support development of crop and forestry enterprises that will contribute to improving the economic well being of the people.

Project Description
The proposed lant nursery will be 10 hectare in size and will include the following elements: Particulars Shade House 10030 Sq Meters Screen house 21650 Sq feet Open Seading Area - 18 Acres Plotting Shed - 3000 SQ feet Store Room 1500 Sq feet Irrigation System Misting Propegator's Nursery Equipment Fencing Internal Roadway Tractor / Ploughing / Material handling Equipment The crops targeted for the plant nursery include the following:

Cabbage Cauliflower Lettuce Tomato Ornamentals

The market for seedlings and planting material produced by the proposed Vibhave plant nursery will be farmers in the surrounding areas of Telenagana and Andhra

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Marketing Plan
The proposed plant nursery project will be based on the demand for the selected crops to be produced by farmers in the Teleangana and Andhra, the market for the selected crops include food processors, the hotel sector and the export market, in addition to local households. The proposed plant nursery project will include a marketing programme to promote sales of seedlings and planting materials to farmers in the project area. The marketing plan will include the development of a sales brochure and flyers describing the supply and price lists of planting material by the nursery. Other elements in the marketing programme will include limited print media advertising, sales calls, and public relations. The proposed plant nursery also will seek to maximize collaboration with existing agencies with extension services and outreach capabilities, including the Ministry of Agriculture, the public awareness programme, the overall project, to increase awareness of the plant nursery and to encourage farmers to purchase seedlings and planting material from the project.

Management and Operational Plan

The total capital expenditure for the proposed plant nursery is estimated as :

CAPEX of ORGANIC NURSERY 25 Acres

Particulars Shade House 10030 Sq Meters Screen house 21650 Sq feet Open Seading Area - 18 Acres Plotting Shed - 3000 SQ feet Store Room 1500 Sq feet Irrigation System Misting Propegator's Nursery Equipment Fencing Internal Roadway Tractor / Ploughing / Material handling Equipment Grand Total (I+II) Amount Rs. 6139463 3657825 1350000 525000 1992150 900000 385000 4386750 1045000 1156312 21537500

Total annual production by the proposed plant nursery is projected to rise from 295,6510 units in year 1, to 323,9830 units in year 2 and to 453,4410 units in year 10, where units include seedlings, suckers and mini-setts.

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The topography of the project site

Shape Topography Road Access Water Electricity Regular rectangular plot Flat and gently sloping land Good access by main road Water available from 3 inch pipe fed by bore well approximately 200 feet above the site. Available from power lines onr main road.

Proposed Development - Plant Nursery elements:

Element
Shade House Screen House Potting Shed Store Room Open Beds Irrigation System Nursery Equipment Perimeter Fencing Internal Roadway

Specifications
Sunstopper shade structure with 73% black polypropylene shade fabric Insect-proof mesh Wooden frame and concrete base Concrete block structure Irrigated and covered with ground cover plastic Ground sprinklers Open beds Elevated sprinklers Shade house Misting Propagator Screen house See Financial Table 2 m. chain link with concrete base Packed earth and marl

The screen house, potting shed and storeroom will be located on the 0.19-hectare (0.47 re) area of the nursery which is planned for ancillary space. The screen house will be used to propagate seedlings in 72-cavity and 98-cavity seedling trays on raised 16x4 wooden benches. Seedlings also will be grown in seedling bags in the shade covered area and the open nursery. In addition, preparation of mini-sett yams will be carried out on benches in the potting shed. Planting material for vegetable crops will be obtained from local and foreign commercial suppliers of seeds. Plantain & banana suckers will be propagated from imported planting material and grown in seedling bags in the shade covered area. Whole yams will be purchased for the preparation of yam setts. Propagation of fruit tree crops, hard woods and forestry species will involve field investigations to identify and select good sources of plant seeds for collection and propagation in seedling bags in the open nursery. Propagation of fruit tree crops and ornamentals also will involve grafting techniques to produce seedlings with desired qualities. Planting media will include commercial potting mixes for vegetable seedlings and suckers.

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Irrigation
The open nursery will be irrigated by a ground sprinkler system while the shade covered area will be irrigated by elevated sprinklers attached overhead to the shade structure. A misting propagator will be installed in the screen house. The irrigation system will be gravity-fed at a pressure of approximately 40 psi from a spring at 200 feet above the site.

Cultivation
The screen house will provide an environment which is free from insects and other vectors. Weed control in the shade house and open nursery will be effected by use of polypropylene ground cover plastic. Watersoluble fertilizer will be applied through the irrigation system and misting propagat or according to the regimen for each crop. Insecticides such as Malathion and Diazinon and soil and systemic fungicides such as Redimil and Basudin will be applied according to manufacturers specifications and the growing conditions. Plants typically will be ready for sale at the appropriate age and height for transplanting depending on the specific crop, and will be sold either as rooted plugs or in seedling bags. Yam mini-setts will be prepared in setts from purchased whole yams and dipped in fungicide. Yam mini-setts will be planted in the field and grown out under contract by selected farmers in the GRW, to provide seed yams as planting material to be sold to yam farmers in the project area.

Environmental Aspects
The environmental aspects of the proposed plant nursery will be of priority importance in the development of the project. All steps will be taken to ensure that the land clearing and construction work takes place in accordance with recommended measures for environmental conservation. Environmental risk mitigation measures including minimizing dust and noise pollution during the construction and operating stages and proper procedures for waste water and solid waste disposal will be employed. While it would be desirable for the proposed nursery to practice organic farming, the nursery will be located in close proximity to farming using chemicals, In addition, as organic farming is not widespread in the project area, the benefits of providing organically grown seedlings would not be realized by farmers. Consequently, the proposed nursery will employ chemical fertilizers and pesticides, until the farming conditions in the project area are conducive to the introduction of organic farming.

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Benefits
Introduction of improved varieties of selected crops with higher yield, resistance to disease and lower mortality rates Reduced time and resources spent by farmers in self-propagation of planting material Establishment of efficient and modern plant propagation centre in the GRW Availability of high-quality planting material on consistent and predictable basis allowing farmers to plan production Demonstration of benefits of efficient plant propagation methods Increased yield and income to farmers Tomatoes and cabbage are the most important of the selected crops within the project area, in terms of both area reaped and crop production. Cauli flower / Onion are the next most important based on the figures for 2009. The crops which remain after this process of elimination represent the target market segments for the proposed plant nursery. The crops targeted for the plant nursery include the following Targeted Crops Vegetables & Condiments Cabbage Cauliflower Lettuce Pak Choi Tomato Broccoli Hot Pepper Sweet Pepper Plantains & Bananas Yams Fruit Tree Crops Ornamentals Timber & Non-Timber Forest Species

Other Crops

15% over years 1-10. These ratios reflect the viable levels attained by the financial projections for the project over the first ten (10) years.

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CAPEX of ORGANIC NURSERY 25 Acres

Particulars Shade House 10030 Sq Meters Screen house 21650 Sq feet Open Seading Area - 18 Acres Plotting Shed - 3000 SQ feet Store Room 1500 Sq feet Irrigation System Misting Propegator's Nursery Equipment Fencing Internal Roadway Tractor / Ploughing / Material handling Equipment Grand Total (I+II) Amount Rs. 6139463 3657825 1350000 525000 1992150 900000 385000 4386750 1045000 1156312 21537500

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NURSERY Projected profitability Statements

Years Period A. Income : Export 'Sales Sale of Seedlings /Suckers /Mini - Setts Total Income (-) Excise duty Net Sales B. Expenditure Labour Fertilizer Fungicides Water & transortation Seedling Bags & Rooted Plugs Power & Fuel charges Total Cost of Production Opening Stock of F G Closing Stock of F G Cost of Sales Gross Profit 2011-12
12 Months

2012-13
12 Months

2013-14
12 Months

2014-15
12 Months

2015-16
12 Months

Rs lacs 2016-17
12 Months

UNITS SOLD 2956510 0.00 434.27 434.27 0.00 434.27 173.71 43.43 47.77 28.23 14.98 4.00 312.11 0.00 0.00 312.11 122.15 5.00 0.00 0.00 5.00 117.15 0.00 117.15

3239830 0.00 475.88 475.88 0.00 475.88 190.35 47.59 52.35 30.93 16.42 4.00 341.64 0.00 0.00 341.64 134.24 5.25 0.00 0.00 5.25 128.99 0.00 128.99

4534410 4534410 0.00 666.03 666.03 0.00 666.03 266.41 66.60 73.26 43.29 22.98 4.00 476.55 0.00 0.00 476.55 189.48 5.51 0.00 0.00 5.51 183.97 0.00 183.97 0.00 666.03 666.03 0.00 666.03 266.41 66.60 73.26 43.29 22.98 4.00 476.55 0.00 0.00 476.55 189.48 5.79 0.00 0.00 5.79 183.69 0.00 183.69

4534410 0.00 666.03 666.03 0.00 666.03 266.41 66.60 73.26 43.29 22.98 4.00 476.55 0.00 0.00 476.55 189.48 6.08 0.00 0.00 6.08 183.41 0.00 183.41

4534410 0.00 666.03 666.03 0.00 666.03 266.41 66.60 73.26 43.29 22.98 4.00 476.55 0.00 0.00 476.55 189.48 6.38 0.00 0.00 6.38 183.10 0.00 183.10

Indirect Expenses
Selling, General & Adm Exp Interest on Term Loan Interest on Working Capital Total Indirect Cost Profit before Taxes Provision for Taxation Profit after taxes

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CONSOLIDATED FINANCIALS & INFRA DETAILS OF AGRICULTURAL COMPLEX Share Holding Pattern
S.No. Name of each Partner % equity Role contribution into the Project 50.00% Managing Partner 25.00% Partner 25.00% Partner total 100.00%

M/s VAIBHAVE ENTERPRISES

01. 02. 03.

Mr. K.Rama Rao Mrs. K. Lakshmi Others

Details of the Associate Concerns

Name of the Activity Concern Nature of Annual Association Turnover Financing Status of Arrangements Account Nil Standard

Vibhave Tiffin South Indian Mr. Rama Rs 65 lakhs Center Fast Food Rao is the Promoter Center 2.00 Vibhavi Fine Multi Crisine Mr. Rama Rs Rao is the Crores Restaurant dining with Banquet Promoter Restaurant Hall

Nil

Standard

Power & Fuel

Power requirement of the Poultry / Mi lch Animals and the Nursery is estimated at 100 KVA and is proposed to be obtained Power received at 33 KV volts by means of step-down sub-station from the local Power grid. The would be stepped down to 415 transformer located in the main (MSDS) and would be fed into the located in MSDS. One diesel50 KVA rating at 430V, 50 Hz is

low tension switch board generating power set of requiring uninterrupted power supply in case of power cuts.

proposed as a standby to meet the emergency power requirement of vital units of the plant

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Water Requirements
Water for the Poultry / Milch Animals and the Nursery is a major issue which would require water for irrigations, Animal Cleaning, consumption , Drip Washing etc which is water on a continuous location has 4 numbers of storage tanks above the network to take care of the requirement. In addition to liters of water is required

about 50,000 liters of basis every day. The 3 bore well along with ground in the supply make up water the above around 1000 to avoid leakages and wastages.

for human consumption. Adequate ipe lines are planned for supply of water to the source of need

Project Implementation Schedule:

The unit is proposing to complete the entire implementation of the 3 project' in 6 months time. The company has already acquired required 48 acres of land, completed all the legal formalities, identified and ordered equipment, and have completed finalizing commission agent network all over India to sell the entire production on a continuous basis.

The project implementation of NURSERY is proposed to be as per the following chart.

ACTIVITY YEAR Land Purchase Land Development Civil Works Machinery Seed lings and Saplings Electrical Power Nursery Production Supplies DEC JAN FEB 11 MAR 11 APRIL 11 MAY !! JUNE 11

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The project implementation of MILCH ANIMALS is proposed to be as per the following chart.
ACTIVITY YEAR Land Purchase Land Development Civil Works Tools and equipment Animals Power Production Supplies DEC JAN FEB 11 MAR 11 APRIL 11 MAY !! JUNE 11

The project implementation of POULTRY is proposed to be as per the following chart.

ACTIVITY YEAR Land Purchase Land Development Civil Works Tools and equipment Chicks Power Production Supplies DEC JAN FEB 11 MAR 11 APRIL 11 MAY !! JUNE 11

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CONSOLIDATED CAPEX & PROJECT FINANCIALS

The total CAPEX, Means of finance & the projected repayment capabilities of the total consolidated business for the three projects are depicted below for having an understanding about the companys potential for implementing the project and repayment of the loans.

CONSOLIDATED CAPEX FOR INTEGRATED POULTRY ANIMAL HUSBANDARY & NURSERY

A. Project Cost
Capital Cost of 200 Milch Animal husbandry Capital Cost of 125000 Layer poultry farm Capital Cost of Organic Vegetable nursery Vehicles Generator back up Deposits Power Cost Office Equipment Preoperative Expenditure Total cost

Rs. 11617000 20000000 21537500 500000 450000 200000 250000 150000 295500 55000000

B. Means of Finance
Capital of Vibhave Enterprises Term Loan Capital Cost of Organic Vegetable nursery

Rs. 5000000 50000000 55000000

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Projected Performance/Financial Indicators:

Consolidated Profitability Statements of Animan Husbandry / Poultry & Nursery
Years Period INCOME Income from Dairy Income from poultry Income from Nursery Total Income (-) Excise duty Net Sales Total Expenditure EXPENDITURE Dairy Poultry Nursery Direct Expenditure Term loan Interest
Selling,General and Adm Exp

2011-12
12 Months

2012-13
12 Months

2013-14
12 Months

2014-15
12 Months

2015-16
12 Months

2016-17
12 Months

71.28 165.48 434.27 671.03 0.00 671.03

74.84 432.28 475.88 983.01 0.00 983.01

78.59 457.95 666.03 1202.57 0.00 1202.57

RS lacs 82.52 415.18 666.03 1163.73 0.00 1163.73

86.64 432.06 666.03 1184.73 0.00 1184.73

90.97 432.21 666.03 1189.21 0.00 1189.21

2011-12 31.14 221.03 317.11 569.27 30.00 40.26 639.54 31.49

2012-13 27.39 385.31 346.89 759.59 27.00 58.98 845.57 137.44

2013-14 28.62 391.60 482.06 902.29 21.00 72.15 995.45 207.13

2014-15 29.92 373.84 482.34 886.10 15.00 69.82 970.92 192.81

2015-16 31.29 374.30 482.63 888.21 9.00 71.08 968.30 216.44

2016-17 32.72 377.10 482.93 892.75 3.00 71.35 967.10 222.11

Total Expenditure Net Income

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Balance Sheets - Liabilities

Years Current Liabilities Working Capital Sundry Creditors Total Term Liabilities Term Loan Unsecured Loans Total Net Worth Equity Share Capital Profit & Loss Account General Reserve Total Total Liabilities
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

0.00 6.00 6.00 500.00 0.00 500.00 50.00 31.49 0.00 81.49 587.49

0.00 7.00 7.00 400.00 0.00 400.00 50.00 137.44 31.49 218.93 625.93

0.00 8.00 8.00 300.00 0.00 300.00 50.00 207.13 168.93 426.06 734.06

0.00 9.00 9.00 200.00 0.00 200.00 50.00 192.81 376.06 618.87 827.87

0.00 10.00 10.00 100.00 0.00 100.00 50.00 216.44 568.87 835.31 945.31

0.00 11.00 11.00 0.00 0.00 0.00 50.00 222.11 785.31 1057.42 1068.42

Balance Sheets - Assets

Years Current Assets Cash & Bank Balances Recivables Stock of Finished Goods Stock of Raw Materials Stores Advances for Raw material Adv Tax/Advances /Investments Total Fixed Assets Gross Block (-) Depreciation as on date Net Block Other Assets Deposits Preoperative Expenses Total Total Assets
2011-12

2012-13 7.00 40.96 21.97 6.00 0.00 0.00 0.00 75.93 545.04 0.00 545.04 2.00 2.96 4.96 625.93

2013-14 15.00 100.21 24.17 13.00 9.00 17.84 4.84 184.06 545.04 0.00 545.04 2.00 2.96 4.96 734.06

2014-15 20.00 96.98 26.58 15.00 10.00 20.00 89.31 277.87 545.04 0.00 545.04 2.00 2.96 4.96 827.87

2015-16 25.00 98.73 29.24 17.00 10.00 22.00 193.34 395.31 545.04 0.00 545.04 2.00 2.96 4.96 945.31

2016-17 30.00 99.10 32.17 19.00 10.00 24.00 304.15 518.42 545.04 0.00 545.04 2.00 2.96 4.96 1068.42

5.00 27.96 0.00 4.53 0.00 0.00 0.00 37.49 545.04 0.00 545.04 2.00 2.96 4.96 587.49

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Cash Flow Statements - Sources of Funds

Years Long Term Sources Profits from Operations Depreciation Share Capital Term Loan Total Short Term Sources Increase in Bank Loans Sundry Creditors Total Total Sources
2011-12 Estimated 2012-13 Projections 2013-14 Projections 2014-15 Projections 2015-16 Projections 2016-17 Projections

31.49 0.00 50.00 500.00 581.49 0.00 6.00 6.00 587.49

137.44 0.00 0.00 0.00 137.44 0.00 1.00 1.00 138.44

207.13 0.00 0.00 0.00 207.13 0.00 1.00 1.00 208.13

192.81 0.00 0.00 0.00 192.81 0.00 1.00 1.00 193.81

216.44 0.00 0.00 0.00 216.44 0.00 1.00 1.00 217.44

222.11 0.00 0.00 0.00 222.11 0.00 1.00 1.00 223.11

Cash Flow Statements - Application Of Funds

Years Long Term Applications Increase in Fixed Assets Deposits Preoperative Expenses Term Loan Total Short Term Applications Recivables Stock of Finished Goods Adv Tax/Advances /Investments Stores Stock of Raw Materials Advances for Raw material Total Total Applications Opening Cash Balance Surplus Closing Cash Balance 2011-12
Estimated

2012-13
Projections

2013-14
Projections

2014-15
Projections

2015-16
Projections

2016-17
Projections

545.04 2.00 2.96 0.00 550.00 27.96 0.00 0.00 0.00 4.53 0.00 32.49 582.49 0.00 5.00 5.00

0.00 0.00 0.00 100.00 100.00 13.00 21.97 0.00 0.00 1.47 0.00 36.44 136.44 5.00 2.00 7.00

0.00 0.00 0.00 100.00 100.00 59.26 2.20 4.84 9.00 7.00 17.84 100.13 200.13 7.00 8.00 15.00

0.00 0.00 0.00 100.00 100.00 -3.24 2.42 84.47 1.00 2.00 2.16 88.80 188.80 15.00 5.00 20.00

0.00 0.00 0.00 100.00 100.00 1.75 2.66 104.03 0.00 2.00 2.00 112.44 212.44 20.00 5.00 25.00

0.00 0.00 0.00 100.00 100.00 0.37 2.92 110.81 0.00 2.00 2.00 118.11 218.11 25.00 5.00 30.00

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Important Financial Ratios

Years Turn over Rs. Lakhs PAT Rs.lakhs PBDIT Current Ratio TOL / TNW Debt Equity Ratio DSCR Fixed Assets / Turnover ( times) Recivables - Days Cr's - usance - days Finished Goods - weeks Rawmaterials - days Break Even Point % 2011-12 671.03 31.49 61.49 6.25 6.21 12 : 1 1.84 1.23 15 1 1 Week 2 45.28 2012-13 983.01 137.44 164.44 10.85 1.86 2013-14 1202.57 207.13 228.13 23.01 0.72 2014-15 1163.73 192.81 207.81 30.87 0.34 2015-16 1184.73 216.44 225.44 39.53 0.13 2016-17 1189.21 222.11 225.11 47.13 0.01

1.80 15 1 1 Week 2

2.21 30 1 1 Week 2

2.14 30 1 1 Week 2

2.17 30 1 1 Week 2

2.18 30 1 1 Week 2

Term Loan Repayment Schedule

Years Principal Loan amount Repayment Closing Balance Average Balance in the year Interest rate Interest Cost per anum - Rs lakhs 2011-12 500.00 0.00 500.00 500.00 6.00% 30.00

500.00 2012-13 500.00 100.00 400.00 450.00 6.00% 27.00

2013-14 400.00 100.00 300.00 350.00 6.00% 21.00

2014-15 300.00 100.00 200.00 250.00 6.00% 15.00

2015-16 200.00 100.00 100.00 150.00 6.00% 9.00

2016-17 100.00 100.00 0.00 50.00 6.00% 3.00

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Debt Service Coverage Ratio Cover

Years Profit from operations Depreciation Interest on Term Loan Total Cover
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Total

31.49 0.00 30.00 61.49

2006-07

137.44 0.00 27.00 164.44

2007-08

207.13 0.00 21.00 228.13

2008-09

192.81 216.44 222.11 1007.42 0.00 0.00 0.00 0.00 15.00 9.00 3.00 105.00 207.81 225.44 225.11 1112.42
2009-10 2010-11 2011-12

Debt
Years Interest on TermLoan Installment of Term loan Total Debt Service Converage Ratio 30.00 0.00 30.00 2.05 27.00 100.00 127.00 1.29 21.00 100.00 121.00 1.89 15.00 9.00 3.00 100.00 100.00 100.00 115.00 109.00 103.00 1.81 2.07 2.19 Total 105.00 500.00 605.00 1.84

Break Even Analysis

Particulars Total direct expenditure Interest on Term Loan Selling, General and Adm charges Total Total Sales Contribution BE Sales Break even Point %
Varialble cost

Fixed Cost 150.38 21.00 0.00 171.38

Total Cost 902.29 21.00 72.15 995.45 1202.57 378.51 544.50 45.28

751.91 0.00 72.15 824.06

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Present Proposal
Facility
Working Capital - CC limit Term Loan Securities Repayment of Term loans. The Project implementation has commenced and is proposed to be completed for commercial production by June 2011. The term loan is thus proposed to be repayable in 5 years i.e 60 monthly installments along with interest with a initial holiday of 12 months. i.e first 6 months for project implementation and the balance 6 months for stabilizing the cash flows.

Present Limit
Nil Nii

Proposed Limit
Nil Rs 500.00 Lacs

____ % collateral security apart from primary assets

PROJECTED OPERATIONAL RESULTS Detailed data on operational expenses and profits for the forthcoming 6 years of projected operations have been worked out and given in the statement annexed. While working out estimates, prices of inputs and selling prices of outputs have been kept at constant rates assuming that any increase in inputs cost would be effect by proportionate increase in the selling price. Marginal increase has been provided in other operational cost to cover effects of possible inflation. CASH GENERATION & REPAYMENT SCHEDULE Based on the estimates of cash generation from the operations and considerations the need to retain certain funds for meeting any other contingent situations, plans for repayment of the loan has been worked out and enclosed as annexes. By the end of the third year the company shall be self sufficient to meet the enhanced working capital limits /or /for expansion or diversification PROJECTED CASH FLOWS A projected cash flow statement of the company at the end of the projected 6 years of working has been drawn up and given in the statement enclosed. The pictures emerges from a glance of the date, spread for the 6 years i.e. Increasing levels of reserve accumulation and decreasing borrowings on the one hand and increasing levels of current assets on the other with comparatively very less amount blocked in fixed capital. The data also reveals a comparatively high ratio of equity to debt depicting a growing strong capital base of the unit over loan funds in the business.

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CONCLUDING REMARKS
GENERAL
From the foregoing detailed analysis of the proposal towards Term loan finance for M/s VIBHAVE ENTERRISED Agricultural Complex it can be concluded that the Company has been extremely careful and selective in preparing its business program. It has drawn up the scheme after adequately studying AGRICULTURAL SECTOR market in india. The plans have been made in such a way that the salability of the market could be almost assured with least marketing cost. The firm has already made a committed commission agents network in place thus the sale is firmly committed.

TECHNO ECONOMICAL ASPECTS

The Group are well experienced in Business operations for the last 15 years. The core founders are qualified and experienced persons and posses all required technical know-how in selling their products and commercial expertise to run the business of a day to day basis.. The founders would be on full time occupation with the company. A suitable and broad based marketing network is already available which could be taken expanded further if found necessary to achieve for proposed sales targets.

FINANCIAL ASPECTS
The Capital investment proposed is comparatively low and the founders have necessary resources to bring in and organize the proposed capital. The financial assistance sought from LENDER is well within normal of lending. The projected operational results show reasonable profit generation by the unit to enable it to meet its debt servicing obligations. A considerable part of cash generation is also proposed to be ploughed back every year to supplement future working capital requirement. Thus the venture is a thoroughly well planned organization and is a sound and viable proposition.

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