PROJECT REPORT

OF

M/S RIYA FOOD PRODUCTS

DHARMSHAL ROAD
DISTT. FATEHABAD

This Project Report has been prepared based on the data furnished by the entrepreneur whose details are
given in the application.

DATE : 19/12/2018
PLACE : Hisar

Prepared by: M/S RIYA FOOD PRODUCTS

CA SUNNY NARANG
M NO +91-9937089860
Sunny Narang & Asscociates
15, First Floor, RD City Centre, Hisar-125001 Prop
 PROJECT REPORT

1 NAME OF UNIT M/S RIYA FOOD PRODUCTS

1.1. CONSTITUTION/STATUS PROPRIETOR

1.2 NAME OF INDUSTRY Manufacturing of Mouth Freshner

1.3 NAME OF SCHEME PMEGP

1.4 PROPOSED LOCATION OF UNIT URBAN

1.5 ADDRESS OF UNIT Dharmshala Road, Fatehabad-125050

1.6 TELEPHONE NO 8708750059

1.7 REGISTERED OFFICE Dharmshala Road, Fatehabad-125050

1.8 ADMINISTRATIVE OFFICE Dharmshala Road, Fatehabad-125050

1.9 NAME OF BANK

1) First Preference IDBI BANK, FATEHABAD
2) 2nd Preference

2 BACKGROUND OF PROMOTER ( As per Annexure A)

3 BRIEF DISCRIPTION OF INDUSTRIAL MOUTH FRESHNER MANUFACTURING

ACTIVITY OF PROPOSED PRODUCT

4 DETAIL OF PROJECT COST (Rs in Lacs)

(i) LAND ON RENT

(ii) BUILDING 0.40
(iii) FURNITURE 1.00
(iV) PLANT & MACHINERY 9.00
(V) WORKING CAPITAL 6.71
TOTAL 17.11

5 MEANS OF FINANCE (Rs in Lacs)

(i) OWN CONTRIBUTION 0.86

(!!) TERM LOAN 9.88
(III) WORKING CAPITAL LOAN 6.37
TOTAL 17.11

6 PROPOSED TO BE FINANCED
MARGIN
OWN
MONEY
CONTRIBUTI BANK LOAN
S No PURPOSE TOTAL AMOUNT GOVT
ON
SUBSIDY
5% 95% 25%
1 LAND ON RENT 0.00 0.00 0.00
2 BUILDING 0.40 0.02 0.38 0.10
3 FURNITURE 1.00 0.05 0.95 0.25
4 PLANT & MACHINERY 9.00 0.45 8.55 2.25
5 WORKING CAPITAL 6.71 0.34 6.37 1.68
Total 17.11 0.86 16.25 4.28
 7 EMPLOYMENT Total No
(i) Workers (Unskilled) 10
(iii) Sales Man 1
(iv) Administrator 1
Total 12

8 TECHNICAL FEASIBILITY

8.1 (a) Proposed Product MOUTH FRESHNER

(a) By Product is any N.A

8.2 MANUFACTURING PROCESS

8.3 CAPACITY

(a) Capacity of each Produ

Licence if Required Installed Capacity Operation Capacity
PRODUCTION OF 180000 PAC/ ANNUALLY PRODUCTION OF 180000 PAC/ ANNUALLY 83% to 100%

NO OF WORKING DAYS IN A YEAR 300 Days

8.4 LOCATION ADVANTAGE OF PROPOSED PREMISED WITH REFERENCE TO

i) Proximities of Raw Material WITH IN SAME DISTT,

(ii) Market of Product Local Market

(iii) AVAILABILITY OF UTILITIES:

(a) Power Easily Available
(b) Water Easily Available
(c) Fuel Easily Available
(d) Labour Easily Available
(e) Transport Easily Available
(f) Communication Easily Available

8.5 PARTICULRAS OF MACHINERY & OTHER ASSETS Annexure XI

8.6 RAW MATERIAL & COMPONENTS

Name of Raw material( s) SAUF, DRY FRUIT, ELACHI, SUGER ETC

Availability of Raw material Yes

a. with in state ( Name of State) HARYANA
b. out of Station ( Name of State)
9 ECONOMIC FEASIBILITY

9.1 Whether the product is exclusively reserved for SSI Sector No

9.2 Name of Major Customer DIRECT CONSUMERS, RETAIL SHOPKEEPER

9.3 Region/ Area where Product will be sold Local Market

9.4 Extent of competiton & No of the units Very Few units working in this area
Engaged in simlier line in the area But demand is high across the area

9.5 Proposed to meet the competition

(a) In price and quality how does unit's
product compare with those of competitors
The demand for the product is very
high and being the unit is financed
under margin money scheme, the
unit can offer high quality at cheaper
rate

(b) is the unit selling direct to the customers if so Yes by Sales Man
Please furnish details like sale force, showroom
depots etc.

10 Bio Data of the promoter(s) Annexure I

11 FINANCIAL VIABILITY

(a) Projected Profitability Statement Annexure II

(b) Projected Balance Sheet Annexure III

(b) Projected Fund Flow Statement Annexure IV

(c)Working capital reuirement for anticipated Turnover Annexure V

(d) Quantitative Detail Annexure VI

(e) Break Even point and Margin on safety Annexure VII

(f) Ratio Analysis Annexure VIII

(e) Depreciation on Fixed Assets Annexure IX

(f) Term Loan Interest & Repayment Annexure X

12 Statutory Compliance

No Objection certificate from pollution control board if any N/A

 ANNEXURE -'I'
BIODATA OF THE PROMOTOER

1 NAME OF PROMOTOR Mrs. MANJU RANI

2 FULL ADDRESS OF THE PROMOTER

(A) PERMANENT DHARAMSHALA ROAD, FATEHABAD

(B) CORRESPONDENCE DHARAMSHALA ROAD, FATEHABAD

3 WHETHER APPLICANT BELONGS TO GEN

SC/SCT/ OBC ETC

4 LANDLINE NO NA

MOBILE NO 8708750059

5 DATE OF BIRTH 25.05.1972

6 ACADEMIC QUALIFICATION Senior Secondary

7 PREVIOUS EXPERIENCE IF ANY

(A) NAME OF ORGANIZATION Fresher
(B) TYPE OF SERVICE Fresher
( C) PERIOD OF SERVICE Fresher

9 RESOURCES OF INVESTMENT SAVING MONEY

10 WHERE HAVE THAT IDEA EVENT TO PROJECT , EXPLAIN DEMAND OF PRODUCT IS INCREASING DAY BY DAY

11 CHARACTER, INTEGRITY, PREVIOUS DEALINGS WITH NEW CASE

THE BOARD & OTHER AGENCIES

12 FINANCIAL POSITION OF PROMOTER SOUND

13 MANAGERIAL CAPABILITY TO RUN THE UNIT CAN RUN EFFICIENTLY

Certificate
I/We certify that all the information furnished by me/us is true that I have no borrowing arrangement for the unit with any bank dues against
indicated in project report, that is no overdue/ statutory dues against me/us/promotoers, that I/we shall furnish all other information that may
required by you in connection with any agency you may deem feet and you, your representative of KVIC/DIC/Public sector & rural bank/ Pvt
Sector and Co-operative sector bank as authorized by you, may at time, inspect/verify my/our assets, booksof accounts etc in my/our factory
business premises.

Place : FATEHABAD
Date : 19/12/2018 Signature of the Borrower
M/S RIYA FOOD PRODUCTS

PROJECT AT GLANCE
COST OF PROJECT

Particulars Figures in Lacs

Land On Rent
Building 0.40
Furniture 1.00
Plant & Machinary 9.00
Working Capital 6.71

Total 17.11

MEANS OF FINANCE

Promotor Contribution 0.86

Loan from Bank
Term Loan 9.88
C/C limit From Bank 6.37

Total 17.11

FINANCIAL ANALYSIS
Debt Service Coverage Ratio- Times- First 3 years 3.51
Net Profit % 9.60
Promotor Contribution(Own)-% 5%
Contribution by DIC/KVIC-% 25%
Break Even Sale ( Rs in Lac) 18.74
Current Ratio- Times 2.09

BREAK UP OF MEANS OF FINANCE

Promotor Margin
Loan Bank
Particulars Total Contribution- Money as per
Component Finance
5% KVIC
Land & Building 0.40 0.02 0.28 0.10 0.38

Plant & Machinery 9.00 0.45 6.30 2.25 8.55

Working Capital 6.71 0.34 4.70 1.68 6.37

Total 16.11 0.81 11.28 4.03 15.30

 M/S RIYA FOOD PRODUCTS
Annexure-II
PROJECTION OF PERFORMANCE, PROFITABILITY & REPAYMENT
(Figures in Lacs)
Years
S.No Particulars
Ist 2nd 3rd 4th 5th

A SALES
Sales 52.73 59.84 63.40 68.14 71.97
Closing Stock 4.42 4.53 4.77 5.09 5.34

Total 57.15 64.37 68.17 73.23 77.31

B COST OF PRODUCTION
Opening Stock - 4.42 4.53 4.77 5.09
Purchase of Raw Material 40.56 41.76 44.20 47.55 50.17
Wages Direct 6.00 6.00 6.00 6.00 6.00
Power & fuel 0.60 0.64 0.66 0.70 0.72
Repair & Maintainence 0.60 0.64 0.66 0.70 0.72
Depreciation 1.49 1.27 1.09 0.93 0.80
Rent 0.60 0.60 0.60 0.60 0.60

Total - Cost of production 49.85 55.33 57.75 61.24 64.09

C Gross profit ( A-B) 7.30 9.04 10.42 12.00 13.21

D Indirect Expenses
Salary to Staff 1.20 1.20 1.20 1.20 1.20
Admn Expenses 0.60 0.60 0.60 0.60 0.60
Selling & Distribution Expenses 0.60 0.60 0.60 0.60 0.60

Total -Indirect Expenses 2.40 2.40 2.40 2.40 2.40

E Profit Before Interest( C-D) 4.90 6.64 8.02 9.60 10.81

F Interest on Term Loan 0.70 0.54 0.39 0.23 0.08
Interest On CC Loan( Avg Basis) 0.50 0.50 0.50 0.50 0.50
G Profit After Interest 3.70 5.59 7.13 8.86 10.23
H Provision for Taxes 0.06 0.22 0.53 0.87 1.17
I Profit After Taxes 3.64 5.37 6.60 7.99 9.06
J Drawings 2.90 4.29 5.27 5.37 5.60
K Retained profits( I-J) 0.74 1.09 1.34 2.62 3.47
L Depreciation 1.49 1.27 1.09 0.93 0.80
M Cash Accurals( K+L) 2.23 2.36 2.42 3.55 4.26
N Repayement of Installment 1.48 1.48 1.48 1.48 1.48
M/S RIYA FOOD PRODUCTS
Annexure-III
PROJECTED BALANCE SHEET
(Figures in Lacs)
Years
LIABILITIES Ist 2nd 3rd 4th 5th

CAPITAL FUND

Promotor Capital 0.86 0.86 0.86 0.86 0.86

Reserve & Surplus 0.74 1.82 3.16 5.77 9.24

Margin Money - - - 4.28 4.28

LOAN & LIABILITIES

Term Loan 8.40 6.92 5.43 1.99 -

Cash credit Limit 6.37 6.37 6.37 5.01 -
Margin Money 4.28 4.28 4.28

CURRENT LIABILITIES

Sundry Creditors 2.11 2.12 2.24 2.41 2.54

TOTAL 22.75 22.36 22.34 20.32 16.92

ASSETS

Fixed Assets 8.91 7.64 6.55 5.62 4.82

Margin Money FDR 4.28 4.28 4.28 - -

Sundry Debtors 4.39 4.99 5.28 5.68 6.00

Closing Stock 4.42 4.53 4.77 5.09 5.34

Cash in hand & Bank 0.74 0.93 1.47 3.94 0.76

TOTAL 22.75 22.36 22.34 20.32 16.92

 M/S RIYA FOOD PRODUCTS
Annexure-IV
PROJECTED FUND FLOW STATEMENTS
(Figures in Lacs)
Years
S.No Particulars
Ist 2nd 3rd 4th 5th

A. SOURCES OF FUND

1 Net Profits 3.64 5.37 6.60 7.99 9.06

2 Depreciation 1.49 1.27 1.09 0.93 0.80
3 Own Capital 0.86 - - - -
4 Term Loan 9.88 - - - -
6 Cash Credit Limit 6.37 - - - -
5 Subsidy 4.28 - - - -
6 Release of FDR - - - 4.28 -

A. TOTAL-SOURCES OF FUND 26.51 6.65 7.69 13.20 9.86

B. APPLICATION OF FUND

1 Increase in Fixed Assets 10.40 - - - -

2 Increase in Working capital 6.71 0.69 0.41 0.55 0.44
3 Subsidy -FDR 4.28 - - - -
4 Drawings 2.90 4.29 5.27 5.37 5.60
5 Repayment of Term Loan 1.48 1.48 1.48 3.45 1.99
6 Repayment of Addition term Loan -
7 Repayment of CC Limit 1.36 5.01

B. TOTAL-APPLICATION OF FUND 25.77 6.46 7.16 10.73 13.04

C MOVEMENT IN CASH 0.74 0.19 0.54 2.47 - 3.17

D OPENING BALANCE - 0.74 0.93 1.47 3.94

E CLOSING BALANCE 0.74 0.93 1.47 3.94 0.76

 M/S RIYA FOOD PRODUCTS
Annexure-V
PROJECTED STATEMENT OF WORKING CAPITAL REQUIREMENT
(Figures in Lacs)
Years
S.No Particulars Period( Days)
Ist 2nd 3rd 4th 5th

A CURRENT ASSETS

1 Stock of Raw Material 15 1.93 1.99 2.10 2.26 2.39

2 Stock of Finished Goods 15 2.49 2.55 2.66 2.82 2.95

3 Sundry Debtors 25 4.39 4.99 5.28 5.68 6.00

A TOTAL( 1+2+3) 8.82 9.52 10.05 10.77 11.34

CURRENT LIABILITIES

4 Sundry Creditors 15 2.11 2.12 2.24 2.41 2.54

5 Other Libilities if any - - - - -

B TOTAL( 4+5) 2.11 2.12 2.24 2.41 2.54

C NET WORKING CAPITAL 6.71 7.40 7.81 8.35 8.79

 M/S RIYA FOOD PRODUCTS
Annexure-VI
QUANTITATIVE DETAIL OF PRODUCTION
YEARS
Particulars U.O.M
Ist 2nd 3rd 4th 5th

MAXIMUM PRODUCTION PAC/ DAY 500 530 550 580 600

NO OF WORKING HOURS - SHIFT Hrs 8 8 8 8 8
NO OF WORKING DAYS IN A YEAR Days 300 300 300 300 300
CAPACITY UTILIZATION % 83% 88% 92% 97% 100%

TOTAL PRODUCTION- YEAR PAC 150000 159000 165000 174000 180000

OPENING STOCK- FINISHED GOODS PAC 0 7500 7950 8250 8700

CLOSING STOCK- FINISHED GOODS PAC 7500 7950 8250 8700 9000

TOTAL SALES PAC 142500 158550 164700 173550 179700

SELLING PRICE RS/PAC 37 38 38 39 40

TOTAL SALE VALUE Rs in Lac 52.73 59.84 63.40 68.14 71.97

Souaf Rs/KG 50.00 51.00 52.02 53.06 54.12

SAUF/PAC KG/PAC 0.05 0.05 0.05 0.05 0.05

DRY DATE Rs/KG 100 102 104 106 108

DRY DATE/PAC KG/PAC 0.05 0.05 0.05 0.05 0.05

SILVER COATED ALAICHI Rs/KG 125 128 130 133 135

SILVER COATED ALAICHI/ PAC KG/PAC 0.11 0.11 0.11 0.11 0.11

Other ( Misri etc) Rs/KG 50 51 52 53 54

Other ( Misri, Essense etc)/PAC KG/PAC 0.05 0.05 0.05 0.05 0.05

REPAIR & MAINTAINENCE Rs/ per Month 5000 5300 5500 5800 6000

PaCKING CHARGES PER PAC 2 2.04 2.08 2.12 2.16

Utility Cost(Electricity, Water, Gas, Diesal Etc)Per Month 5000 5300 5500 5800 6000
Detail of staff & Labour
Salary Per
Particulars No of Person
Month
No of Worker 10 5000 10 10 10 10 10
Sales Man 1 10000 1 1 1 1 1
Administrator 1 Self Self Self Self Self Self
M/S RIYA FOOD PRODUCTS
Annexure-VII
PROJECTED BREAK EVEN POINT
S.NO PARTICULARS AMOUNT IN LACS
5th Year
A TOTAL SALE 77.31

B VARIABLE COST
Raw Material( Inc Stock) 55.26
Wages Direct 6.00
Power & fuel 0.72
Repair & Maintanence 0.72
Selling & Distribution Expense 0.60
Interest on CC 0.50 63.80

CONTRIBUTION ( A-B) 13.51

C CONTRIBUTION Ratio 17%

D FIXED EXPENSES
Depreciation 0.80
Salary to Staff 1.20
Admn Expenses 0.60
Rent 0.60
Interest on Term Loan 0.08 3.27

E BREAK EVEN SALES Fixed cost/contribution ration 18.74

M/S RIYA FOOD PRODUCTS
Annexure-VIII
CALCULATION OF DEBT SERVICE COVERAGE RATIO( D.S.C.R)
(Figures in Lacs)
Years
S.NO Particulars
Ist 2nd 3rd 4th 5th
SOURCES OF FUNDS

1 NET PROFIT AFTER TAX 3.64 5.37 6.60 7.99 9.06

2 DEPRECIATION 1.49 1.27 1.09 0.93 0.80

3 INTEREST ON TERM LOAN 0.70 0.54 0.39 0.23 0.08

A TOTAL-A 5.83 7.19 8.08 9.15 9.94

FUND TO BE SERVED

1 INSTALLMENT AMOUNT 1.48 1.48 1.48 1.48 1.48

2 INTEREST ON TERM LOAN 0.70 0.54 0.39 0.23 0.08

B TOTAL(1+2+3) 2.18 2.03 1.87 1.72 1.56

C D.S.C.R(A/B) 2.67 3.55 4.32 5.34 6.37

AVG OF D.S.C.R- First 3 Year 3.51

CALCULATION OF CURRENT RATIO
1 Sundry Debtors 4.39 4.99 5.28 5.68 6.00

2 Closing Stock 4.42 4.53 4.77 5.09 5.34

3 Cash in hand & Bank 0.74 0.93 1.47 3.94 0.76

A TOTAL CURRENT ASSETS 9.56 10.45 11.52 14.70 12.10

5 Sundry Creditors 2.11 2.12 2.24 2.41 2.54

6 Cash Credit 6.37 6.37 6.37 5.01 -

B Total CURRENT LIABILITIES 8.48 8.49 8.62 7.42 2.54

B CURRENT RATIO 1.13 1.23 1.34 1.98 4.75

B AVERAGE OF CURRENT RATIO ( based 2.09

 M/S RIYA FOOD PRODUCTS
Annexure-IX
CALCULATION OF DEPRECIATION ( W.D.V METHOD)
Figures in Lacs
BUILDING SHED & FURNITURE
Year Opening Value Rate of Depreciation Depreciation Closing Value
Ist 1.40 10% 0.14 1.26
2nd 1.26 10% 0.13 1.13
3rd 1.13 10% 0.11 1.02
4th 1.02 10% 0.10 0.92
5th 0.92 10% 0.09 0.83
PLANT & MACHINEY
Year Opening Value Rate of Depreciation Depreciation Closing Value
Ist 9.00 15% 1.35 7.65
2nd 7.65 15% 1.15 6.50
3rd 6.50 15% 0.98 5.53
4th 5.53 15% 0.83 4.70
5th 4.70 15% 0.70 3.99
M/S RIYA FOOD PRODUCTS
Annexure-X
CALCULATION OF INTEREST ON TERM LOAN
PARTICULARS FIGURES IN LACS

Total Amount of Loan 9.88

Less Subsidy( 25%) 2.47

Amount to Repay 7.41

Frequancy of Installment Monthly

Repayment Period 5 Years

Repayment in a year 1.48

Rate of Interest 10.5%

YEARS
PARTICULARS
Ist 2nd 3rd 4th 5th
Opening Balance 7.41 5.93 4.45 2.96 1.48
Less payment during the year 1.48 1.48 1.48 1.48 1.48
Closing Balance 5.93 4.45 2.96 1.48 0.00
Average Balance 6.67 5.19 3.71 2.22 0.74
Interest -10.5% on Averge Balance 0.70 0.54 0.39 0.23 0.08
M/S RIYA FOOD PRODUCTS

S.No Capital Investment Amount In Lac

A LAND On Rent

B CONSTRUCTION OF BUILDING SHED 0.40

B FURNITURE 1.00

D PLANT & MACHINERY 9.00

Total( A+B+C) 10.40