FAMOUS BAKERS

KUDUMBASHREE COMMUNITY DEVELOPMENT CENTRE

PROJECT
REPORT
Baison Valley
Pottankadu PO
Idukki
Udubanchola
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Introduction [Year]

Kudumbashree is a female-oriented,
The Mission Statement
community-based, poverty reduction project

of the Government of Kerala, state lying in the

south-west part of the Indian subcontinent,

"To eradicate absolute poverty in
where many development experiments are
ten years through concerted
being tested, refined and implemented. The
community action under the
mission aims at the empowerment of women,
leadership of local governments,
through forming self-help groups and

by facilitating organization of the encouraging their entrepreneurial or other

poor for combining self-help with wide range of activities. The purpose of the

mission is to ensure that the women should no

demand-led convergence of
longer remain as passive recipients of public
available services and resources
assistance, but active leaders in women-
to tackle the multiple dimensions
involved development initiatives.

and manifestations of poverty, Kudumbashree movement was launched on

holistically." May 17, 1998. The formal function was

chaired by the then Local Administration

Minister Paloli Mohammed Kutty at

Kottakkunnu in Malappuram where Prime

Minister Atal Bihari Vajpayee performed the

formal launching of the program

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The CDS system [Year]

Community Development Society (CDS) aims to organise women in low-

income communities to plan for their own

development, thus ensuring

that poverty-focused

programmes reach

their intended target

groups, without diversion or leakage. The

active participation of women in the process is achieved

through a three-tiered structure

comprising:

Neighbourhood committees, which prepare micro-plans;

Area development societies, which consolidate these micro-plans into a

mini-plan; and

Municipal-level community development societies, which integrate these

area plans into a municipal-level action plan

Focus on the poor

The CDS, like other anti-poverty programmes targets the poor. Income

provides a basic measure of poverty, the poverty line for the urban areas of

Kerala being set at Rs 327.96 per capita per month (1999 figure). For the

purposes of the CDS, the poor are not recognised by this criterion alone. An

index based on 9 non-economic indicators is used to identify families at risk.

These indicators are:

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1. A kutcha house (house made from temporary materials) [Year]

2. No access to safe drinking water

3. No access to sanitary latrines

4. An illiterate adult member in the family

5. No more than one earning member in the family

6. Family receiving barely two meals a day or less

7. Children aged 5 or under in the family

8. Family are members of a Schedule Caste or Schedule Tribe

9. An alcoholic or drug addict in the family

Families characterised by four or more of these indicators are considered to

be at high risk. Assistance under the CDS programme is prioritised according

to the degree to which communities and families are considered to be at risk.

When infrastructure and health projects are planned, the locality with the

largest number of at risk families is given priority.

Within these localities,

priority is given to those

individuals and families

that are most at risk.

Formation of women collectives: The poor women from families identified

will be organised into Neighbourhood Groups (NHG) representing 15 to 40

families. A five-member team elected from the NHGs will be the cutting edge

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of the programme. NHGs will be federated democratically into Area

[Year]

Development Societies (ADS) at the Panchayat/Municipality Ward level and

then into Community Development Societies (CDS) at the

Panchayat/Municipal level. Their organizational structures will provide

opportunities for collective public action.

More information and training:

Weekly meetings of NHGs, sharing of experiences, discussions, organised

trainings etc., will broaden their outlook on better health, better education,

better social and economic status.

Skill upgrades training:

To facilitate economic development, suitable skill upgrades training will be

given to women.

Thrift - credit operations and 24-hour banking system:

Enabling women to realize their latent potential, strengthening them through

self-help are the main objectives of Kudumbashree. Small savings generated

at the families are pooled at various levels as thrift and used to attract credit

from banks, which will operate as 24-hour bank for the poor, acting as a sub-

system of the formal banks.

Better living conditions

Infrastructural facilities: The needs identified

at NHG level are shaped as micro plans

which are integrated into mini plans at Area

Development Society (ADS) level and action

plan at CDS level. This will be the anti-poverty

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sub plan of the local body and this will facilitate convergent delivery of
[Year]

Government programmes meant for the poor. Rather than the traditional

system of heavily subsidized approach, Kudumbashree promote self-help

approach for building houses, latrines, access to drinking water, sanitary

facilities etc., availing the minimum support from Government.

Common infrastructural facilities in the community strengthens them further.

Micro-enterprises for sustainable economic development: Providing skill

upgrade trainings, self-employment opportunities and infrastructural

development through wage employment schemes are the preparing

grounds for further development of successful micro enterprises.

Kudumbashree is bent on giving necessary resource support and facilitate

forward/backward linkages etc., to promote micro-entrepreneurship among

poor women.

Power to the people especially the poor women: The skill for identification

of needs, fixing priorities, availing resources, bridging gap between needs

and resources in a cost effective manner etc., are taught to the poor women

groups in various phases. In the decentralization of power to the local bodies

and common man, Kudumbashree can act as a healthy sub-system

facilitating participation of poor women in the planning, implementation and

monitoring of the programme.

Leadership - decision making power: Interaction in women collectives will

help them to have a better understanding, which will lead to the emergence

of leadership. This will help to ensure efficient women leadership to elected

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governments in future. The ultimate goal: Reaching out family through

[Year]

women, and community through family, is the ultimate target of

Kudumbashree.

Famous Bakers is a CDS registered at saibanvalley grama panjayath Idukki .

The prior performance of the CDS is satisfactory and is moving towards

achieving the goal. The CDS had purchased fixed assets to the tune of Rs 6.8

lakhs for the purpose of manufacturing bakery items and its marketing. The

purpose of this project is to illustrate the financial viability, technical

perfection and social commitment that the CDS had performed since its

incorporation.

Bakery Products

We all know FMCG hold the majority

of market share in the current

society. In the market the bakery

product has towering demand.

Bakery items are processed in very

hygienic environment. As it is very

perishable the product should be

packed within no time after its processing is completed. Bakery products

have become very popular throughout the country. Breads and biscuits are

the most common products but other items like cakes, pastries, cream-rolls,

cookies etc. These items are consumed by people of all age groups across

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the board. Nature of these products is such that the consumers prefer fresh
[Year]

items. Shelf life of cakes & pastries is limited and thus local manufacturers

enjoy distinct advantage. In spite of continuous increase in the consumption

of these items during last few years, the per capita consumption is still very

low compared to the advanced countries. There is, thus, good scope for

these items. A good pastry is light and airy, easily broken in the mouth (what is

called 'short' eating), but firm enough to support the weight of the filling. The

dough must be well mixed but care must be taken not to overmix the

pastry. This results in long gluten strands and toughens the pastry.

Thus, the manufacture of good pastry is something of a fine art

Raw Material Availability

The all important raw materials will be wheat flour, sugar, eggs and ghee for

which proper arrangements should be made. Other items like milk

powder, yeast, salt, assorted fruits, baking powder, caramel colour,

vanilla, butter cream, etc.

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[Year]

Bakery industry in India is the largest of the food industries .India is the

second largest producer of biscuits after USA. The biscuit industry in India

comprises of organized and un- organised sectors. Bread and Biscuits

form the major baked foods accounting for over 80% of total bakery

products produced in the country. The quantities of bread and biscuits

produced are more or less the same. However, value of biscuits is more

than bread. The industry has traditionally been and largely continues to be

in the unorganized sector contributing over 70% of the total production.

Bakery products once considered as sick mans diet, have now become an

essential food items of the vast majority of population. Though bakery

industry in India has been in existence since long, real fillip came only in

the later part of 20th century. The contributing factors were urbanization,

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resulting in increased demand for ready to eat products at reasonable costs

[Year]

etc

Bread

Bread roll

Flatbreads

Bagels

Muffins

Pizzas

Buns

Pastries

Pies

Tarts

Brownies

Cakes

Cupcakes

Cookies

Scones

Barmbrack

Soda bread

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Biscuit (bread) [Year]

Crackers

Biscuits

Pretzels

Biscotti

Cornbread

Pandesal

Pumpkin bread

Pita

Sourdough

Potato bread

FINANCIALANALYSIS & KEYASSUMPTIONS

The project cost estimates for the proposed project have been formulated on the

basis of discussions with industry stakeholders and experts. The projections cover the

cost of Tools, equipment including office equipment, fixtures etc.

DEPRECIATION TREATMENT

The treatment of depreciation would be on a diminishing balance method as

detailed below

1.Machinery -10%

2. Furniture -10%

3.Buildings-10%

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REVENUE PROJECTIIONS [Year]

For the projection purposes, annual revenue growth rate of 5% has been assumed

which would cover anticipated growth in the industry as well as price. Based on our

previous experience and assumption and discussions with the industry experts

ACCOUNTS RECEIIVABLES

In the case of perishable food products it is considering the industry norms, it has

been assumed that 40% of the total sales will be cash while remaining 60% sales will

be on credit to local distributors, house hold customers etc . A collection period of 30

days has been assumed.

FINANCIAL VIABILITY

The proposed Profitability Statement, Projected Balance Sheet and the Projected

Cash Flow Statement, the debt service coverage ratio, and the return on investment

ratio etc indicated the project is financially viable. The projected profit and loss

account statement shows that there will be surplus fund even for meeting any

unforeseen contingencies. The Cash Flow Statement also revels the healthy financial

trend in the flow of fund.

CONCLUSION

On revealing the various aspects of the project and studying the financial &

technical features of the scheme, it can easily be noted that the above project will

be a great success. This Project viewed from any angle will find a viable and

justifiable outlook. There are no hidden anomalies or expenses in the Project. The

Working capital Loan and the Term Loan availed for implementation of the Project

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and for domestic business and its repayment can be done from the income derived
[Year]

from the business. This Project is recommended for implementation.

Considering the fair quality of services and product offered by the establishment

and further the prior experience, knowledge, technical expertise and commitment

of the promoters are added advantage for the smooth running of the project. The

income generated, with the experience, expertise and commitment of the promoter

ensures the success of the project. Even the conservative estimates show that

project is financially and economically viable and commercially sound. Expected

demand fashion and new tends in the market in the upcoming year are added

advantage for the smooth running of the unit in a profitable manner as projected in

the annexure. The various projected financial statements and Debit Service

Coverage Ratio (DSCR), Return on Investment (ROI),Pay Back Period etc. show that

the project will be able to repay the entire Bank Loan together with interest with in

the stipulated period and further shows that the project is financially sound and

deserve support and help from the Bank.

ANNEXURE

Projected Profit and Loss Account

Projected Balances Sheet

Cash Flow Statement

Key Assumptions and Project Cost

Depreciation Statement

Ratio analysis statements

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[Year]

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 Famous Bakers Kudumbashree CDS
Project Assemption
Rent Advance 5,000.00
Machinery 680,000.00
Buildings 100,000.00
Funiture and Fixtures 80,000.00
Total 865,000.00
Purchase of Raw Materials Amount
Cashewnut 94,000.00
Egg 13,000.00
Milk 29,000.00
Packing Materials 157,000.00
Rum 20,000.00
Purchases Provisions 7,936,000.00
Vegetables 271,000.00
Total 8,520,000.00
Operations and Capacity Utilisation Assumptions
Per day Per month Per year
Average expected sales 45000 1125000 13,500,000.00
Total 13,500,000.00
 Famous Bakers Kudumbashree CDS
Projected Profit and Loss Account
PARTICULARS Year-1 Year-2 Year-3 Year-4 Year-5
By Direct Income
" Sales 13,500,000.00 15,120,000.00 16,930,000.00 18,960,000.00 21,240,000.00
Closing Stock 800,000.00 880,000.00 970,000.00 1,070,000.00 1,180,000.00
Total 14,300,000.00 16,000,000.00 17,900,000.00 20,030,000.00 22,420,000.00
To Direct Expenses
" Opening Stock 800,000.00 880,000.00 970,000.00 1,070,000.00
" Purchae of Raw materials 8,520,000.00 8,720,000.00 9,764,000.00 10,934,000.00 12,247,000.00
" Staff cost 1,200,000.00 1,326,000.00 1,465,000.00 1,619,000.00 1,789,000.00
" Rent 60,000.00 60,000.00 66,000.00 66,000.00 73,000.00
" Electicity and watercharges 7,000.00 8,000.00 9,000.00 10,000.00 11,000.00
Total 9,787,000.00 10,914,000.00 12,184,000.00 13,599,000.00 15,190,000.00
To Gross Profit 4,513,000.00 5,086,000.00 5,716,000.00 6,431,000.00 7,230,000.00
GP Ratio 33.43 33.64 33.76 33.92 34.04
To Indirect Expenses
" Salaries Administrative Staffs 120,000.00 120,000.00 132,000.00 132,000.00 145,000.00
" Telephone charges 12,000.00 13,000.00 14,000.00 15,000.00 17,000.00
" Miscellaneous Expenses 15,000.00 15,800.00 16,600.00 17,400.00 18,300.00
" Repairs & Maintanance 50,000.00 55,000.00 60,500.00 66,600.00 73,300.00
" Staff Welfare 18,000.00 19,800.00 21,800.00 24,000.00 26,400.00
" Depreciation 86,000.00 77,000.00 70,000.00 63,000.00 56,000.00
Total 301,000.00 300,600.00 314,900.00 318,000.00 336,000.00
Net Profit 4,212,000.00 4,785,400.00 5,401,100.00 6,113,000.00 6,894,000.00
29.45 29.91 30.17 30.52 30.75
 Famous Bakers Kudumbashree CDS
Projected Balance Sheet
Liabilities Year-1 Year-2 Year-3 Year-4 Year-5
Capital Account
Capital Introduced/opening 380,000.00 4,442,000.00 9,027,400.00 14,178,500.00 19,991,500.00
Add :Net profit 4,212,000.00 4,785,400.00 5,401,100.00 6,113,000.00 6,894,000.00
Sub Total 4,592,000.00 9,227,400.00 14,428,500.00 20,291,500.00 26,885,500.00
Less: Drawings 150,000.00 200,000.00 250,000.00 300,000.00 350,000.00
Capital 4,442,000.00 9,027,400.00 14,178,500.00 19,991,500.00 26,535,500.00
Current Liabilities
Sundry Creditors 300,000.00 400,000.00 500,000.00 575,000.00 600,000.00
Other Current Liabilities 30,000.00 33,000.00 36,000.00 40,000.00 44,000.00
CREDIT TOTAL 4,772,000.00 9,460,400.00 14,714,500.00 20,606,500.00 27,179,500.00
Fixed Assets (As per Dep Statement) 774,000.00 697,000.00 627,000.00 564,000.00 508,000.00
Current Assets
Sundry Debtors 500,000.00 550,000.00 575,000.00 600,000.00 610,000.00
Closing Stock 800,000.00 880,000.00 970,000.00 1,070,000.00 1,180,000.00
Cash and bank balances 2,698,000.00 7,333,400.00 12,542,500.00 18,372,500.00 24,881,500.00
Sub Total 3,998,000.00 8,763,400.00 14,087,500.00 20,042,500.00 26,671,500.00
DEBIT TOTAL 4,772,000.00 9,460,400.00 14,714,500.00 20,606,500.00 27,179,500.00
 - - - - -
Cash Flow Statement
Net Profit 4,212,000.00 4,785,400.00 5,401,100.00 6,113,000.00 6,894,000.00
Cash Flow from Operating Activities
Depreciation Expenses 86,000.00 77,000.00 70,000.00 63,000.00 56,000.00
Net (increase) Decrease in Stock - 800,000.00 - 80,000.00 - 90,000.00 - 100,000.00 - 110,000.00
Net (increase) Decrease in Debtors - 500,000.00 - 50,000.00 - 25,000.00 - 25,000.00 - 10,000.00
Net increase (Decrease) in Creditors 300,000.00 100,000.00 100,000.00 75,000.00 25,000.00
Net Cash Flow from Operating Activities - 914,000.00 47,000.00 55,000.00 13,000.00 - 39,000.00
Cash Flow from Financing Activities
Net increase (Decrease) in Capital 230,000.00 - 200,000.00 - 250,000.00 - 300,000.00 - 350,000.00
Net increase (Decrease) in Other Liabilites 30,000.00 3,000.00 3,000.00 4,000.00 4,000.00
Net Cash Flow from Financing Activities 260,000.00 - 197,000.00 - 247,000.00 - 296,000.00 - 346,000.00
Cash Flow from Investment Activities
Net (increase) Decrease in Fixed Assets - 860,000.00
Opening Cash Balance 2,698,000.00 7,333,400.00 12,542,500.00 18,372,500.00
Closing Cash Balance 2,698,000.00 7,333,400.00 12,542,500.00 18,372,500.00 24,881,500.00
- - - - -
 Break Even Analysis
Income 13,500,000.00 15,120,000.00 16,930,000.00 18,960,000.00 21,240,000.00
Total 13,500,000.00 15,120,000.00 16,930,000.00 18,960,000.00 21,240,000.00
Variable Cost
Cost of Goods sold 7,720,000.00 8,640,000.00 9,674,000.00 10,834,000.00 12,137,000.00
Staff cost 1,200,000.00 1,326,000.00 1,465,000.00 1,619,000.00 1,789,000.00
Rent 60,000.00 60,000.00 66,000.00 66,000.00 73,000.00
Electicity and watercharges 7,000.00 8,000.00 9,000.00 10,000.00 11,000.00
Total 8,987,000.00 10,034,000.00 11,214,000.00 12,529,000.00 14,010,000.00

Fixed Cost
Salaries Administrative Staffs 120,000.00 120,000.00 132,000.00 132,000.00 145,000.00
Telephone charges 12,000.00 13,000.00 14,000.00 15,000.00 17,000.00
Miscellaneous Expenses 15,000.00 15,800.00 16,600.00 17,400.00 18,300.00
Repairs & Maintanance 50,000.00 55,000.00 60,500.00 66,600.00 73,300.00
Staff Welfare 18,000.00 19,800.00 21,800.00 24,000.00 26,400.00
Depreciation 86,000.00 77,000.00 70,000.00 63,000.00 56,000.00
Total 301,000.00 300,600.00 314,900.00 318,000.00 336,000.00
Net profit (Before Tax) 4,212,000.00 4,785,400.00 5,401,100.00 6,113,000.00 6,894,000.00
- - - - -
Contribuion 4,513,000.00 5,086,000.00 5,716,000.00 6,431,000.00 7,230,000.00
PV Ratio 33.43 33.64 33.76 33.92 34.04
Average PV Ratio 33.76
BEP in Rs 900,398.85 893,643.73 932,690.17 937,533.82 987,087.14
Average BEP in Rs 930,270.74
BEP in % 6.67 5.91 5.51 4.94 4.65
Average BEP in % 5.54
 Famous Bakers Kudumbashree CDS
Depreciation Statement
Funiture and
Machinery Buildings
Fixtures Total
Rate of Depreciation 10% 10% 10%
Cost 680,000.00 100,000.00 80,000.00 860,000.00
Depreciation for 1st year 68,000.00 10,000.00 8,000.00 86,000.00
WDV 612,000.00 90,000.00 72,000.00 774,000.00
Depreciation for 2nd year 61,200.00 9,000.00 7,200.00 77,000.00
WDV 550,800.00 81,000.00 64,800.00 697,000.00
Depreciation for 3nd year 55,080.00 8,100.00 6,480.00 70,000.00
WDV 495,720.00 72,900.00 58,320.00 627,000.00
Depreciation for 4th year 49,572.00 7,290.00 5,832.00 63,000.00
WDV 446,148.00 65,610.00 52,488.00 564,000.00
Depreciation for 5th year 44,615.00 6,561.00 5,249.00 56,000.00
WDV 401,533.00 59,049.00 47,239.00 508,000.00