Mushroom Project

RASHMI AGRI CORPORATION
TABLE OF CONTENTS
PROJECT AT A GLANCE---------------------------------------------------------------------------------------------------- 1
NAME & ADDRESS OF PROMOTERS------------------------------------------------------------------------------------2
PROJECT FEASIBILITY RATIO-------------------------------------------------------------------------------------------4
PROJECT FEASIBILITY GRAPH------------------------------------------------------------------------------------------5
COMPANY PROFILE-------------------------------------------------------------------------------------------------------- 5
COMPANY PROFILE-------------------------------------------------------------------------------------------------------- 6
INTRODUCTION------------------------------------------------------------------------------------------------------------- 7
PRODUCT DESCRIPTION---------------------------------------------------------------------------------------------- 7
HEALTH BENIFITS OF MUSHROOM---------------------------------------------------------------------------------7
LOCATION, LAND, BUILDING & UTILITIES---------------------------------------------------------------------------8
PLANT & MACHINERY/EQUIPMENT-----------------------------------------------------------------------------------8
RAW MATERIALS/CONSUMBLES---------------------------------------------------------------------------------------9
CANNING OF MUSHROOM--------------------------------------------------------------------------------------------- 9
PICKLE OF MUSHROOM------------------------------------------------------------------------------------------------ 9
DEHYDRATED MUSHROOM------------------------------------------------------------------------------------------- 9
PRODUCT AND PROCESS------------------------------------------------------------------------------------------------10
CANNED MUSHROOM------------------------------------------------------------------------------------------------- 10
MUSHROOM PICKLE IN OIL----------------------------------------------------------------------------------------- 11
DEHYDRATION OF MUSHROOM-----------------------------------------------------------------------------------11
Method for mushroom dehydration------------------------------------------------------------------------------11
MARKET POTENTIAL & STRATEGY----------------------------------------------------------------------------------12
MAN POWER REQUIREMENT------------------------------------------------------------------------------------------12
PROJECT COST------------------------------------------------------------------------------------------------------------- 13
ANNUAL SALES------------------------------------------------------------------------------------------------------------ 13
ANNUAL EXPENSE-------------------------------------------------------------------------------------------------------- 13
APPLICATION OF FUND------------------------------------------------------------------------------------------------- 14
MEANS OF FINANCE------------------------------------------------------------------------------------------------------ 14
PROFITABILITY STATEMENT------------------------------------------------------------------------------------------15
CASH FLOW STATEMENT-----------------------------------------------------------------------------------------------16
BALANCE SHEET---------------------------------------------------------------------------------------------------------- 17
DEBT SERVICE COVERAGE RATIO------------------------------------------------------------------------------------18
BREAK EVEN POINT------------------------------------------------------------------------------------------------------ 19
DEPRECIATION------------------------------------------------------------------------------------------------------------ 20
REPAYMENT OF TERM LOAN------------------------------------------------------------------------------------------21
BREAK UP OF EXPENDITURE ON DIFFERENT ITEMES----------------------------------------------------------24

COST OF LAND AND BUILDIND-------------------------------------------------------------------------------------24

COST OF PLANT AND
PROJECT AT A GLANCE MACHINERY
----------------------------------------------------------------------------------------------------------------------------- 24
Activity Mushroom Processing
Email r.ragrico@gmail.com
Phone 8897966842
Constitution : Partnership
Scheme SME
Number of employment : 10
Total project cost : 4123000
Fixed Capital : 3024000
Working Capital : 1099000
Total Bank loan : 3092250
Promoter(s) contribution : 1030750
Term loan 2268000 Interest : 12%
Working capital loan : 824250 Interest : 14%
MISCELLANEOUS FIXED ASSETS-----------------------------------------------------------------------------------25
PRELIMINARY AND PRE-OPERATIVE EXPENSES--------------------------------------------------------------25
COMPUTATION WORKING CAPITAL------------------------------------------------------------------------------25
COMPUTATION OF PRODUCTION OF CANNED MUSHROOM------------------------------------------------26
C0MPUTATION OF COST OF RAW MATERIALS-----------------------------------------------------------------26
COMPUTATION OF SALE--------------------------------------------------------------------------------------------- 27
STAFF AND LABOUR SALARY--------------------------------------------------------------------------------------- 27
REPAIR AND MAINTENANCE--------------------------------------------------------------------------------------- 27
P0WER AND UTILITY------------------------------------------------------------------------------------------------- 28
OTHER FINANCIAL INDICATOR---------------------------------------------------------------------------------------29
ASSUMPTION-------------------------------------------------------------------------------------------------------------- 30
CONCLUSION--------------------------------------------------------------------------------------------------------------- 31

PROJECT AT A GLANCE
Activity Mushroom Processing
Email r.ragrico@gmail.com
Phone 8897966842
Constitution : Partnership
Scheme SME
Number of employment : 10
Total project cost : 4123000
Fixed Capital : 3024000
Working Capital : 1099000
Total Bank loan : 3092250
Promoter(s) contribution : 1030750
Term loan 2268000 Interest : 12%
Working capital loan : 824250 Interest : 14%

NAME & ADDRESS OF PROMOTERS

Name RAM KISHAN
PRUSTY PALACE, MELAN PADIA, GURUJANGA DISTRICT

Address KHORDHA -(ODISHA)-752057
Phone 8897966842
Date of birth 04-06-1958
Designation MANAGING PARTNER
Category OBC
E-mail rk.rstuv@gmail.com
Name SAMIR KUMAR SAHOO
1362,DHABALESWAR LANE, GURUJANGA, DISTRICT -

Address KHORDHA (ODISHA)- 752057
Phone 9438731766
Designation PARTNER
Category OBC
E-mail r.agrico@gmail.com
Name SUDESH
PRUSTY PALACE, MELAN PADIA, GURUJANGA DISTRICT

Address KHORDHA -(ODISHA)-752057
Phone 8826266842
Designation PARTNER
Category OBC
E-mail rk.rstuv@gmail.com

PROJECT FEASIBILITY RATIO

Debt Service Coverage Ratio (Average) :
4.00
Current ratio (Average) :5.87
Present Value 55.33
Net Present Value 22.09
Internal Rate of Return 46%
Average Rate of Return 59.17
Profitability Index 1.83
Payback Period 2.71 Year
Particulars 1st Year 2nd 3rd 4th 5th
Year Year Year Year
Current ratio 3.04 4.36 5.74 7.26 8.93
Quick ratio 2.83 4.14 5.51 7.03 8.68
Interest coverage ratio 7.29 6.93 9.01 12.47 19.37
Debt equity ratio 1.334 0.738 0.415 0.225 0.101
TOL/TNW 1.38 0.77 0.44 0.24 0.11
DSCR 8.06 2.9 2.81 3.02 3.22
Gross profit Sales Percentage % 17.94% 17.02% 17.36% 17.66% 17.92%
Net profit Sales Percentage % 9.25% 8.91% 9.76% 10.51% 11.19%
Return On Capital Employed 0.4 0.35 0.34 0.33 0.32
Break Even Point - Unit 65878 65657 60843 56079 51183
Break Even Point - Sales (lakhs) 56.00 55.81 51.72 47.67 43.50
Net profit Sales % Quick ratio
PROJECT FEASIBILITY GRAPH

Expense Splitup

COMPANY PROFILE
The Rashmi Agri Corporation is new startup in agriculture sector. It is a partnership firm
a registered in MSME with registration No.UDYAM-OD-19-0000867. The Firm is also
registered with Ministry of commerce and Industry, Department of commerce,
Directorate General of Foreign Trade for Export and Import with IEC -
ABAFR9365G.
The promoter of RAC is Shri Ram Kishan who is competent to run Agri-business. He did
B.Sc.Ag. & AH (Hounor) followed by M.Sc.Ag. in Horticulture from Govind Ballabh
Pant University of Agriculture & Technology, Pantnagar in 1983.After serving six month
in WIMCO Ltd, he joined National Seeds Corporation Ltd. (NSC) in June, 1984 and
worked there till his retirement in June, 2018.He worked in different capacity in NSC and
having the rich experience in production, processing, quality control and marketing of
different kinds of seed. We are having a strong cluster of farmers to produce the superior
quality of seed.
The production & marketing division is headed by Shri Samir Kumar Sahoo who is
associated with the farmers since long back and having vast experience in product
development in agriculture sector.
We are also backed by a dedicated technical team to guide the farmers in producing the
superior quality of seed. The seed processing is also supervised by technical expert in the

field.
Apart from the seed production and supply of superior quality seed, we also facilitate to
the farmers to get the best & tested other inputs also. Our approach is based on
popularizing the improved varieties of food crops that are adaptive to the climate change,
recommended for general cultivation, and released by the National Agricultural Research
System (NARS). The Rashmi Agri Corporation is engaged in production of superior
quality seeds of improved varieties of different crops covering Cereals, Pulses, Oil seeds
and vegetables. We also deal with supply of bio- fertilizers, bio-pesticides and bio-
insecticides to the farmers for organic farming with tie-up to other manufacturing
company.

INTRODUCTION
Mushroom, a form of fleshy edible fungi is a rich source of high quality protein, minerals,
folic acid and vitamins. Because of pleasant flavour, taste and freshness, mushroom are
considered as an important delicacy in human diet. They are praised for their characteristic
meaty biting texture and flavour. White button mushroom (Agaricus Bosporus), oyster
mushroom or dhingri (Pleurotus sajorcaju) and paddy straw mushroom (Volvariella
volvacea) are commercially cultivated in India. White button mushroom contributes more
than 90% of the total production. However owing to high moisture content and delicate
nature, mushroom are highly perishable and cannot be stored for more than 24 hours at
ambient temperature. The deterioration is mainly caused due to their high metabolic
activity, respiration rate and susceptibility to enzymatic browning. Drying, canning and
freezing are the accepted methods for preservation of mushrooms and by converting into
different products like pickle, chutney, soup etc their availability can be increased.
Mushroom Canning is a method of preserving mushroom in which the food contents are
processed and sealed in an airtight container (jars like Mason jars, and steel and tin cans).
Canning provides a shelf life typically ranging from one to five years, although under
Specific circumstances it can be much longer.
PRODUCT DESCRIPTION
Canned mushrooms refers to the product prepared from the sound, succulent, fresh
mushroom by proper trimming, washing, and sorting and is packed with the addition of
water in hermetically sealed containers and sufficient processed by heat to assure
preservation of the product. Salt, or monosodium glutamate, or both may be added in a
quantity sufficient to season the product. Ascorbic acid (Vitamin C) may also be added to
improve the shelf life.
Uses of canned mushroom are as follow:
• Mushroom is used as in ingredient in a number of dishes such as curries, sandwich, soup etc.
• The canned mushrooms can be added to salads, rice preparations and as a delectable topping
on pizzas.
• The canned mushrooms can be used for various Indian recipes like mushroom matar
(with peas), tandoori mushroom (grilled mushrooms) or even mushroom biryani.
HEALTH BENIFITS OF MUSHROOM
• Mushrooms are legendary in providing a wealth of nutrients ranging from protein, fiber,
B vitamins, and vitamin C, to calcium and other minerals.
• The mushrooms have been shown to boost heart health; lower the risk of cancer;
promote immune function; ward off viruses, bacteria, and fungi; reduce inflammation;
combat allergies; help balance blood sugar levels; and support the body's detoxification
mechanisms.


LOCATION, LAND, BUILDING & UTILITIES

Location: The unit will be establish at suitable place in Jhujhar Singh Gram Panchayat
which is well approachable to the mushroom growing farmers for supply of raw mushroom to
the unit.
Land: A piece of 2500 sq. ft. is available at above mentioned address which is sufficient to
establish proposed unit
Building: A pre-engineered factory shed would be erected which has been considered in
proposed project.
Utilities: Electricity is available from Orissa state electricity board. However, standby
DG set would also be installed to take care of processing need in the event of power failure.
The bore well will be digged for water.
PLANT & MACHINERY/EQUIPMENT

The following machinery/equipment is required for canning of Mushroom.
1. Tray-type Dehydrator
2. Steam-jacketed Kettle
3. Can Steamer
4. Blanching Equipment’s
5. Straight-line Exhaust Box with electric motor, gear box etc
6. Canning Retort with attachment
7. Stacking Trays
8. Baby Boiler
9. Utensils, Weighing Scales, Hand Gloves, Miscellaneous Tools and Equipment
10. Testing Equipment

RAW MATERIALS/CONSUMBLES
The following materials and consumables are required for production of different product
proposed by unit.
CANNING OF MUSHROOM
1. Good quality of mushroom
2. Salt
3. Sugar
4. Preservative
PICKLE OF MUSHROOM
2. Salt
3. Red chilies Powder
4. Turmeric powder
5. Coriander powder
6. Aniseed and cumin powder
7. Spices (fenugreek, black pepper, cinnamon powder)
8. Garlic chopped/paste
9. Onion chopped
10. Vinegar
11. Mustard oil
DEHYDRATED MUSHROOM
2. Potassium meta-bi-sulphite
3. Citric acid

PRODUCT AND PROCESS

Mushroom is perishable in the nature and has short shelf life. The unit will process the raw
mushroom for enhancing the shelf life of it. The raw mushroom will be procured from the
mushroom growing farmers by our collecting center at premium price. It will be process
and canned and supplied to different entities.
The unit will be produced canned mushroom. Pickle of mushroom and dehydrated
mushroom. The following steps are involved commercial production of above mentioned
product.
CANNED MUSHROOM
1. Sorting and grading: Diseased, damaged, bruised, shriveled and browned mushroom
are discarded. Only the healthy white and tight buttons are selected and separated into two
grades i.e. cap diameter up to 2.5cm with compact head as ‘A’ and cap diameter beyond
2.5 cm as ‘B’grade.
2. Washing: Graded mushrooms are thoroughly washed 3-4 times in cold running water
to remove dirt, soil etc without damaging or rubbing them excessively.
3. Blanching: To inhibit enzymes activity blanching in necessary. It also removes the air
from the tissues of raw material to enable a satisfactory and uniform pack. Mushrooms are
blanched in boiling water for 2-3 minutes followed by immediate cooling in water. The
steam blanching is preferred because the blanching losses in boiling water have been
estimated to be about 30 percent.
4. Filling of cans: For mushroom canning, lacquered cans (sulphur resistant) are
recommended in order to avoid sulphur staining of canned mushroom. The blanched
mushrooms are filled into cans to its declared drained weight i.e. 230 g in A 1 tall can and
430gm in A2½ can size.
5. Brining: After filling mushroom in cans, add hot brine solution having a ratio of 2%
common salt, 1% sugar and 0.05 % citric acid. Fill up to the brim of the can. Brining adds
flavour to the product, reduces processing time and helps in increasing the shelf-life of
canned mushroom.
6. Exhausting: After brining, cans are exhausted to remove any entrapped air and other
occluded gases from the product to ensure longer shelf-life. Cans filled with brine solution
are fed to the exhaust box for a specified period of time depending upon the length of
exhaust tunnel and size of can. Exhausting can also be performed by placing the filled cans
in boiling water till temperature of the center of can reaches 85-90 C for 1-2 minutes.
7. Double Seaming /can closing: Immediately after exhausting cans are sealed with the
help of double seamer to get the hermetic seam. Sealed cans are then placed in upside
down position to sterilize the coded lids.
8. Processing/sterilization: Processing is also designated as sterilization is an

indispensable unit operation in canning. This is accomplished by processing the

hermetically sealed cans at a pressure of 15 lbs psi for a specified period of time
depending upon the size of the can and altitude of processing place. However for A1 tall
and A21/2 size cans, processing is required for 35 and 45 minute respectively.
9. Cooling: Cooling of cans is done immediately after sterilization in cold running water
to room temperature in order to give an abrupt shock to the micro-organisms to get rid of
their adverse activities.
10. Labelling and storage: The cooled cans are stored in a cool and dry place and
smeared with grease to remove any adhering moisture from the can body to avoid rusting.
Cans are kept at ambient temperature for 8-10 days to check any swell, leakage, puffing
and other disorders before labelling.
MUSHROOM PICKLE IN OIL
Method for mushroom pickling:
Wash and cut mushroom into pieces. Blanch by holding the pieces in muslin cloth in
boiling water containing salt for 3-4 minutes followed by immersing in cold water.
Remove excessive moisture by spreading the pieces on a muslin cloth. Fry onion garlic
and ginger in oil, mix other ingredients and mushrooms except vinegar and mix
thoroughly. Add vinegar and pack in a clean jar.
DEHYDRATION OF MUSHROOM
Method for mushroom dehydration
1. Select sound white button mushroom and wash the fresh produce thoroughly in
running cold water and then in salt and 0.1% KMS.
2. Cut into two equal halves longitudinally and wash again quickly in running cold water.
If desired these can also be kept as such without cutting into halves. Keep the
mushroom in 2 % salt water to check browning.
3. Blanch in boiling water for 4-5 minutes.
4. Cool immediately in cold water.
5. Steep the blanched mushrooms in water containing 1.5% potassium meta-bi-sulphite +
0.2% citric acid for 30 to 45 minutes.
6. Drain the mushroom and wash with water thoroughly.
7. Dry the product by placing over trays.
8. Place the loaded trays in dehydrator maintaining 60 degree celcious temperature for 6-hours.
9. Pack in polyethylene bag.

MARKET POTENTIAL & STRATEGY

The global canned mushroom market size was valued at USD 7.3 billion in 2018. Shifting
consumer preference towards healthy and protein rich food is a key factor driving the
product demand over the forecast period. Mushroom is a potential alternative for protein
supplement due to its high protein content and digestibility. As per studies, 100 grams of
mushroom contain 3.1 grams of protein. Mushroom is a rich source of various nutrients
and proteins such as vitamin C, vitamin B, fiber, calcium, and minerals. In addition, 70
grams of raw mushrooms contain 2.3 grams of carbohydrate and 15 calories, thereby
making it a low calorie food. Moreover, mushroom is a good source of fiber such as
soluble fiber and beta glucan. In addition to vitamins and minerals, the product is found to
be a rich source of antioxidants, which may help in cancer prevention. Demand for canned
mushroom is expected to grow over the forecast period owing to various health benefits
associated with it.
There is huge demand of Mushroom as people becoming health conscious day by day. The
Company uses its own outlet and a dealer’s network for sale of canned mushroom.
The company will also make suitable tie-up with reputed hotel and restaurant.
MAN POWER REQUIREMENT

The staff requirement for smooth running of the unit will be as under.
1. Supervisor -1
2. Accountant - 1
3. Machine Operator/Skilled Workers - 2
4. Unskilled Workers – 3

PROJECT COST
Sl. No. Item Amount
1 Land Development 3,50,000
2 Building & Civil Works 12,50,000
3 Plant Machinery 9,39,000
4 Miscellaneous Assets 2,22,000
5 Contingency 84,000
6 Preliminary & Pre-operative 1,79,000
expenses
7 Working Capital 10,99,000
Total 41,23,000
ANNUAL SALES
Sl. No. Item Sales Details Total
Canned
1 Mushroom 22727 x 85 Can x 12 Month 2,31,81,540
Total 2,31,81,540
ANNUAL EXPENSE
Sl. No. Item Amount
1 Cost of Mushroom 1,33,32,000
2 Cost of packing material 33,16,344
3 Labour Wages 9,88,272
4 Salary of Supervisor & 7,24,740
Accountant
5 Power & Utilities 4,63,224
6 Repairs and maintenance 35,400
Total 1,88,59,980

APPLICATION OF FUND
Sl. No. Item Amount
1 Land Development 3,50,000
2 Building & Civil Works 12,50,000
3 Plant Machinery 9,39,000
4 Miscellaneous Assets 2,22,000
5 Contingency 84,000
6 Preliminary & Pre-operative expenses 1,79,000
Total Investment 30,24,000
Total Subsidy 0
Net Investment 30,24,000
MEANS OF FINANCE
Sl. No. Item Amount
1 Term Loan 22,68,000
2 Working capital Loan 8,24,250
3 Total loan 30,92,250
4 Term Loan contribution 7,56,000
5 Working capital contribution 2,74,750

PROFITABILITY STATEMENT
All figures are in lakhs
Particulars Estimated Projected Projected Projected Projected
Utilisation of @100 @ 60 % @ 65 % @ 70 % @ 75 % @ 80 %
installed
capacity
Revenue from
operation
Canned 231.8 139.09 150.68 162.27 173.86 185.45
Mushroom
Add :
Closing stock 1.92 2.02 2.12 2.22 2.33
Total 141.01 152.70 164.39 176.08 187.79
Less :
Opening stock 0 1.92 2.02 2.12 2.22
Gross Sale 141.01 150.78 162.37 173.96 185.57
Less :
Cost of 133.32 79.99 86.66 93.32 99.99 106.66
Mushroom
Cost of packing 33.16 19.9 21.56 23.21 24.87 26.53
material
Salary of 7.25 7.25 7.25 7.25 7.25 7.25
Supervisor &
Accountant
Labour Wages 9.88 5.93 6.42 6.92 7.41 7.91
Repairs and 0.35 0.21 0.23 0.25 0.27 0.28
maintenance
Power & Utilities 4.63 2.78 3.01 3.24 3.47 3.71
Total 116.06 125.13 134.19 143.26 152.34
Gross profit 24.95 27.57 30.20 32.82 35.45
Less :
Depreciation 3.14 2.76 2.42 2.13 1.87
Interest on TL 2.27 2.55 1.97 1.31 0.56
Interest on WC 1.15 1.15 1.15 1.15 1.15
Total 6.56 6.46 5.54 4.59 3.58
Profit before tax 18.39 21.11 24.66 28.23 31.87
Income Tax 5.52 5.76 6.79 7.83 8.89
Profit after tax 12.87 15.35 17.87 20.40 22.98

CASH FLOW STATEMENT

Cash Inflow Pre Estimated Projected Projected Projected Projected
operativ
e period
Capital 7.56 2.75 0 0 0 0
Subsidy 0 0 0 0 0 0
Term loan 22.68 0 0 0 0 0
Profit before tax 0 21.81 22.89 25.76 28.57 31.37
with interest
Increase in WC loan 0 8.24 0 0 0 0
Depreciation 0 3.14 2.76 2.42 2.13 1.87
Increase in Current 0 0.96 0.048 0.05 0.053 0.056
liability
Total Cash Inflow 30.24 36.90 25.70 28.23 30.75 33.30
Cash Outflow
Fixed Assets 30.24 0 0 0 0 0
Increase in Current 6.22 0.31 0.33 0.34 0.36
asset
Interest on TL 0 2.27 2.55 1.97 1.31 0.56
Interest on WC 0 1.15 1.15 1.15 1.15 1.15
Income Tax 0 5.52 5.76 6.79 7.83 8.89
Decrease in Term 0 3.9 5.23 5.89 6.64
loan
Drawing 0 0 0 0 0 0
Total Cash Outflow 30.24 15.16 13.67 15.47 16.52 17.60
Opening balance 0 0 21.74 33.77 46.52 60.75
Net Cashflow 0 21.74 12.03 12.76 14.23 15.70
Closing balance 0 21.74 33.77 46.52 60.75 76.43

BALANCE SHEET
Liability Pre As of Projected Projected Projected Projected
operativ Estimated
e period
A. Share holders’
funds
Capital 7.56 10.31 10.31 10.31 10.31 10.31
Reserve & Surplus 0 12.87 26.30 42.15 60.43 81.20
B.Non current
Liabilities
Term loan 22.68 22.68 18.78 13.55 7.66 1.02
C.Current
Liabilities
Working capital 0 8.24 8.24 8.24 8.24 8.24
loan
Account payable 0.96 1.02 1.04 1.09 1.13
Total Liability 30.24 55.06 64.65 75.29 87.73 101.90
Asset
A. Non current
Assets
Fixed Assets 30.24 27.10 24.34 21.91 19.78 17.91
B. Current Assets
Inventory 0 1.92 2.02 2.12 2.22 2.33
Trade receivables 0 4.30 4.52 4.74 4.98 5.23
Cash and cash 0 21.74 33.77 46.52 60.75 76.43
equivalence
Total Asset 30.24 55.06 64.65 75.29 87.73 101.90

DEBT SERVICE COVERAGE RATIO

Particulars Estimated Projected Projected Projected Projected
Receipts
a)Net Profit 12.87 13.43 15.84 18.28 20.75
b)Depreciation 3.14 2.76 2.42 2.13 1.87
c)Interest on 2.27 2.55 1.97 1.31 0.56
term loan
Total 18.28 18.74 20.23 1.72 23.19
Repayments
a)Loan Principal 0 3.90 5.23 5.89 6.64
b)Interest on term 2.27 2.55 1.97 1.31 0.56
loan
Total 2.27 6.45 7.20 7.20 7.20
DSCR 8.06 2.9 2.81 3.02 3.22
Average DSCR: 4.00 DSR = Total Receipt/Total Repayment

BREAK EVEN POINT

Year 1st Year 2nd Year 3rd Year 4th Year 5th Year
Net Sales & Other Income 139.09 150.68 162.27 173.86 185.45
Less : Op. WIP Goods 0 1.92 2.02 2.12 2.22
Add : Cl. WIP Goods 1.92 2.02 2.12 2.22 2.33
Total Sales 141.01 150.78 162.37 173.96 185.56
Variable & Semi Variable Exp.
Raw Material Consumed 79.99 86.66 93.32 99.99 106.66
Packaging 19.9 21.56 23.21 24.87 26.53
Wages & Salary at 60% 7.908 8.202 8.502 8.796 9.096
Power and Utilities at 85% 2.36 2.56 2.75 2.95 3.15
Repair & maintenance 0.21 0.23 0.25 0.27 0.28
Interest on working Capital 1.15 1.15 1.15 1.15 1.15
Total 111.52 120.36 129.19 138.03 146.87
Contribution 29.49 30.42 33.18 35.93 38.69
Fixed & Semi Fixed Expenses
Power and Utilities at 15% 0.417 0.4515 0.486 0.5205 0.5565
Wages & Salary at 40% 5.272 5.468 5.668 5.864 6.064
Interest on Term Loan 2.27 2.55 1.97 1.31 0.56
Depreciation 3.14 2.76 2.42 2.13 1.87
Total 11.10 11.23 10.54 9.82 9.05
Sale Price per unit (Rs.) 85.00 85.00 85.00 85.00 85.00
Variable Cost per Unit (Rs.) 68.15 67.90 67.67 67.48 67.32
Contribution per Unit (Rs.) 16.85 17.10 17.33 17.52 17.68
BREAK EVEN POINT - Unit 65878 65657 60843 56079 51183
BREAK EVEN POINT - Sale 56.00 55.81 51.72 47.67 43.50
BREAK EVEN POINT - 40% 37% 32% 27% 23%
Capacity
BREAK EVEN POINT - Unit = Fixed Cost/(Sale Price per unit-Variable cost per unit)
BREAK EVEN POINT - Sale = Fixed Cost/[(Sales - Variable Cost)/Sales]

DEPRECIATION
Particulars Rate Estimated Projected Projected Projected Projected
Building & Civil 10 12.50 11.25 10.13 9.11 8.20

Works
Less Depreciation 1.25 1.13 1.01 0.91 0.82
Written down value 11.25 10.13 9.11 8.20 7.38
Plant Machinery 15 9.39 7.98 6.78 5.77 4.90
Miscellaneous Assets 10 2.22 2.00 1.80 1.62 1.46
Contingency 10 0.84 0.76 0.68 0.61 0.55
Preliminary & Pre- 10 1.79 1.61 1.45 1.30 1.17
operative expenses
Total less 3.14 2.76 2.42 2.13 1.87
depreciation
Total written down 27.10 24.34 21.91 19.78 17.91
value
REPAYMENT OF TERM LOAN

Instalment Outstandin Principal Interes Amount Outstanding

Nos. g at the repayment t paid at the end
beginning
1 22.68 0.00 0.23 0.23 22.68
2 22.68 0.00 0.23 0.23 22.68

3 22.68 0.00 0.23 0.23 22.68
4 22.68 0.00 0.23 0.23 22.68

5 22.68 0.00 0.23 0.23 22.68

6 22.68 0.00 0.23 0.23 22.68
7 22.68 0.00 0.23 0.23 22.68

8 22.68 0.00 0.23 0.23 22.68
9 22.68 0.00 0.23 0.23 22.68

10 22.68 0.00 0.23 0.23 22.68
11 22.68 0.00 0.23 0.23 22.68

12 22.68 0.00 0.23 0.23 22.68
13 22.68 0.37 0.23 0.60 22.31

14 22.31 0.38 0.22 0.60 21.93
15 21.93 0.38 0.22 0.60 21.55

16 21.55 0.38 0.22 0.60 21.16
17 21.16 0.39 0.21 0.60 20.78

18 20.78 0.39 0.21 0.60 20.38
19 20.38 0.40 0.20 0.60 19.99

20 19.99 0.40 0.20 0.60 19.59
21 19.59 0.40 0.20 0.60 19.18

22 19.18 0.41 0.19 0.60 18.78
23 18.78 0.41 0.19 0.60 18.36

24 18.36 0.42 0.18 0.60 17.95
25 17.95 0.42 0.18 0.60 17.53

26 17.53 0.42 0.18 0.60 17.10
27 17.10 0.43 0.17 0.60 16.67

28 16.67 0.43 0.17 0.60 16.24
29 16.24 0.44 0.16 0.60 15.80

30 15.80 0.44 0.16 0.60 15.36
31 15.36 0.45 0.15 0.60 14.91

32 14.91 0.45 0.15 0.60 14.46
33 14.46 0.46 0.14 0.60 14.01

34 14.01 0.46 0.14 0.60 13.55

35 13.55 0.46 0.14 0.60 13.08
36 13.08 0.47 0.13 0.60 12.61

Instalment Outstanding Principal Interest Amount Outstanding
Nos. at the repayment paid at the end
beginning
37 12.61 0.47 0.13 0.60 12.14
38 12.14 0.48 0.12 0.60 11.66
39 11.66 0.48 0.12 0.60 11.18
40 11.18 0.49 0.11 0.60 10.69
41 10.69 0.49 0.11 0.60 10.20
42 10.20 0.50 0.10 0.60 9.70
43 9.70 0.50 0.10 0.60 9.20
44 9.20 0.51 0.09 0.60 8.69
45 8.69 0.51 0.09 0.60 8.17
46 8.17 0.52 0.08 0.60 7.66
47 7.66 0.52 0.08 0.60 7.13
48 7.13 0.53 0.07 0.60 6.60
49 6.60 0.53 0.07 0.60 6.07
50 6.07 0.54 0.06 0.60 5.53
51 5.53 0.54 0.06 0.60 4.99
52 4.99 0.55 0.05 0.60 4.44
53 4.44 0.56 0.04 0.60 3.88
54 3.88 0.56 0.04 0.60 3.32
55 3.32 0.57 0.03 0.60 2.75
56 2.75 0.57 0.03 0.60 2.18
57 2.18 0.58 0.02 0.60 1.60
58 1.60 0.58 0.02 0.60 1.02
59 1.02 0.59 0.01 0.60 0.43
60 0.43 0.43 0.00 0.43 0.00

BREAK UP OF EXPENDITURE ON
COST OF LAND AND BUILDIND

Particulars Area (Sqft) Rate Amount
(Rs) (Rs)
Land Own
Land Development 350000
Work Shed, Store House cum 2500 400 1000000
Office
Add: Electrification, Water supply, Sanitation and 250000
Drainage @ 25%
TOTAL 1250000
Say (Rs. in lakhs ) 16.00
DIFFERENT ITEMES
COST OF PLANT AND MACHINERY

Particulars Qty Rate Amount
(Rs)
Tray-type Dehydrator 1 60000 60000
Steam-jacketed Kettle 1 60000 60000
Can Seamer 1 92000 92000
Blanching Equipment’s 2 55000 110000

Straight-line Exhaust Box with 1 80000 80000

electric motor, gear box etc
Canning Retort with attachment 1 95000 95000
MISCELLANEOUS FIXED ASSETS
Stacking Trays 225 209 47025
Baby Boiler 1 85000 Amount 85000
Particulars Qty (Rs)
Utensils, Weighing Scales, Hand LS 150000
Electrical Load Security and Transformer LS 95000
Gloves, Miscellaneous Tools and
Furniture’s, Fixtures including Working LS 60000
Equipment
Tables
Testing Equipment
Miscellaneous items LS LS 75000
47000
Sub totalSub total 854025
202000
Add: Taxes, transportation and installation etc
Add: Taxes, transportation and installation etc @ 10% 85400
20200
@ 10% TOTAL 222200
TOTAL 939426
Say (Rs. in lakhs) 9.39
PRELIMINARY AND PRE-OPERATIVE

EXPENSES
Particulars Amount (Rs)
Travelling Expenses 25000
Non Refundable Deposits and Professional Fees 49500
Interest during implementation 63000
Miscellaneous expenses 41000
TOTAL 178500

COMPUTATION OF PRODUCTION OF
CANNED MUSHROOM
Items to be Manufactured - Canned Mushroom @ 100%
Plant's Capacity
Plant capacity 50 KG per Hour
Plant capacity per day 400 KG
Plant capacity per annum 120000 KG
Wastage 10%
Raw Material 133334 KG
Requirement
Final Product
One can size 440 Grams
Total canned per annum 272727 Can
COMPUTATION WORKING CAPITAL
Sl. No. Item Amount
C0MPUTATION OF COST OF RAW MATERIALS
1 Consumables / stock in hand 1,92,000
2 Receivables/Sundry
Mushroom debtors
Cast of Nos. of 4,30,000
Cost of
3 Payablesrequired/ Mushroom Can 96,000
Can per
4 Total working capital
Year with per Year 10,99,000
required year @
Year 5 Capacity
Own Contribution
wastage @ /Year 2,74,750
Rs.12.16/
6 Working capital loanRs.100/Kg Can
8,24,250
(in lakhs) (in lakhs)
1st year 60% 79999 79.99 163636 19.90

2nd year 65% 86666 86.66 177273 21.56
3rd year 70% 93332 93.32 190909 23.21

4th year 75% 99999 99.99 204545 24.87

5th year 80% 106666 106.66 218182 26.53
COMPUTATION
100% OF SALE
P0WER AND UTILITY
133332 133.32 272727 33.16
Particulars
A. Expenses on1stPower
year 2nd year 3rd year 4th year 5th year
Opening Stock Particulars 0 2259 2376
Quantity 2494 Total2612
Power
Production 163636 177273 190909 204545
(Kw) 218182
(Kw)
LessPlant
: Closing 2259 2376
& Machinery (Total HP of 20) 2494
1 2612
14.92 14.92 2741
Stock
General Lighting 20 0.1 2
Net Sale 165895 177391 191027 204663 218311
Total power 16.92
Sales (in Lacs) 141.01 150.78 162.37 173.96 185.56
requirement/ day (Kw)
No. of hrs/ day 8
Nos. of days/annum 300
Annual power requirement (kwh) 40608
Rate per unit (Rs) 5.5
Expenses on power (Rs) 223344
B: Estimate of Utility
Expenses on Water/Other Utilities 30000
(Rs)
STAFF AND LABOUR SALARY
Expenses on Power & Utility at 253344
Particulars REPAIR AND MAINTENANCE
100% capacity (Rs) Wages Rs.
Per month
No of
employee
Total Salary
Particulars Say (Rs.Contingencies
Cost in lakhs) 2.53
Total Rate Amount
Accountant (Rs) 12,000 1 12,000
(Rs)
Supervisor
Building & Civil 12.50 10,000
0.625 1
5.51 2.00% 10,000
0.11
Skilled
Works 9,450 2 18,900
Unskilled
Plant & 9.39 6,500
0.47 3
9.86 2.00% 19,5000.19
Total salary per month
Machinery 60,400
Misc.annual
Total Fixed Assets 2.22 (In lakhs) 0.11 2.33 2.00% 724800
labour charges 0.05
Expenses on 24.11 1.205 17.7 0.35
repair &
maintenance

OTHER FINANCIAL INDICATOR

Pre Estimated Projected Projected Projected Projected
Particulars operative
period
Profit after tax 12.87 15.35 17.87 20.4 22.98
Average Profit 17.89
after tax
Net Cashflow -30.24 21.74 12.03 12.76 14.23 15.70
Cumulative Cash
flow -8.50 3.53 16.29 30.52 46.22
Present Value 55.33
Net Present Value 22.09
Internal Rate of
Return 46%
Average Rate of
Return 59.16
Profitability Index 1.83
Payback Period 2.71 Year

ASSUMPTION
The entire projection is based on the assumption that the sales From Canned Mushroom for 5
years will be as under
Estimated Projected Projected Projected Projected

139.09 lakhs 150.68 lakhs 162.27 lakhs 173.86 lakhs 185.45 lakhs
Also the total expense for the firm during the projection years will be as follows.
Estimated Projected Projected Projected Projected

116.06 lakhs 125.13 lakhs 134.19lakhs 143.26 lakhs 152.33 lakhs
• Cost of the land or building is based on the basis of current rate.

• Cost of machinery is based on the prevailing price in the market.
• Value of raw materials & utility charges as per the current market conditions.
• The project is base on single shift and 300 days in a year.
• To run the unit viably throughout the year, the other fruits & vegetables can be canned
with the same machinery whenever mushroom is not available.
• All other assumptions are calculated based on the basis of experience of the
promoter and deep study on the working of similar model.

CONCLUSION
The project as a whole describes the scope and viability of the Agriculture industry and mainly
of the financial, technical and its market potential. The project guarantee sufficient fund to repay
the loan and also give a good return on capital investment. When analyzing the social- economic
impact, this project is able to generate an employment of 10 and above. It will cater the demand
of Agriculture and thus helps the other business entities to increase the production and service
which provide service and support to this industry. Thus more cyclic employment and livelihood
generation. So in all ways, we can conclude the project is technically and socially viable and
commercially sound too.
When we take a close look at the Debt Service Coverage Ratio (DSCR), the avg: DSCR is
4.00: 1, which is at a higher proposition and proposes a stable venture
The Profit and Loss shows a steady growth in profit throughout the year and the firm has a higher
Current Ratio (average) of 5.87, this shows the current assets and current liabilities are managed
& balanced well.

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RASHMI AGRI CORPORATION

RASHMI AGRI CORPORATION

COST OF LAND AND BUILDIND-------------------------------------------------------------------------------------24

RASHMI AGRI CORPORATION

RASHMI AGRI CORPORATION

NAME & ADDRESS OF PROMOTERS

RASHMI AGRI CORPORATION

Name RAM KISHAN

PRUSTY PALACE, MELAN PADIA, GURUJANGA DISTRICT

Date of birth 04-06-1958

Designation MANAGING PARTNER

Name SAMIR KUMAR SAHOO

1362,DHABALESWAR LANE, GURUJANGA, DISTRICT -

Date of birth 11-09-1973

PRUSTY PALACE, MELAN PADIA, GURUJANGA DISTRICT

Date of birth 15-06-1965

RASHMI AGRI CORPORATION

PROJECT FEASIBILITY RATIO

Net proﬁt Sales % Quick ratio

PROJECT FEASIBILITY GRAPH

RASHMI AGRI CORPORATION

RASHMI AGRI CORPORATION

RASHMI AGRI CORPORATION

RASHMI AGRI CORPORATION

Uses of canned mushroom are as follow:

HEALTH BENIFITS OF MUSHROOM

RASHMI AGRI CORPORATION

RASHMI AGRI CORPORATION

LOCATION, LAND, BUILDING & UTILITIES

PLANT & MACHINERY/EQUIPMENT

5. Straight-line Exhaust Box with electric motor, gear box etc

6. Canning Retort with attachment

9. Utensils, Weighing Scales, Hand Gloves, Miscellaneous Tools and Equipment

10. Testing Equipment

RASHMI AGRI CORPORATION

1. Good quality of mushroom

1. Good quality of mushroom

3. Red chilies Powder

6. Aniseed and cumin powder

7. Spices (fenugreek, black pepper, cinnamon powder)

11. Mustard oil

1. Good quality of mushroom

RASHMI AGRI CORPORATION

PRODUCT AND PROCESS

8. Processing/sterilization: Processing is also designated as sterilization is an

RASHMI AGRI CORPORATION

indispensable unit operation in canning. This is accomplished by processing the

MUSHROOM PICKLE IN OIL

Method for mushroom pickling:

Method for mushroom dehydration

RASHMI AGRI CORPORATION

MARKET POTENTIAL & STRATEGY

MAN POWER REQUIREMENT

3. Machine Operator/Skilled Workers - 2

RASHMI AGRI CORPORATION

RASHMI AGRI CORPORATION

RASHMI AGRI CORPORATION

RASHMI AGRI CORPORATION