PROJECT REPORT

Bank : State Bank of India

Borrower :Charnjeet Kaur C/O Manpreet Singh

Village Mian, (Mansa)
(Punjab) 151505

Project : Dairy Farming Mudra Loan

 CHARNJEET KAUR C/O MANPREET SINGH
Village Mian, (Mansa) 151505

INDEX

ANNEXURE NO. SUBJECT

1 PROJECT AT A GLANCE

TECHNO - ECONOMIC PARAMETERS AND

2
ASSUMPTIONS MADE

3 SUMMARY OF COSTS

4 PROJECTED BALANCE SHEET

5 PROJECTED CASH FLOW STATEMENT

6 PROJECTED PROFITABILITY STATEMENT

SCHEDULE OF TERM LOAN REPAYMENT &

7
INTEREST CALCULATION

8 SCHEDULE OF DEBT SERVICE COVERAGE RATIO

9 STATEMENT OF NPV AND IRR

10 STATEMENT OF TOL / TNW

11 STATEMENT OF CURRENT RATIO

 Annexure - 1
CHARNJEET KAUR C/O MANPREET SINGH
Village Mian, (Mansa) 151505

PROJECT AT A GLANCE

S. No. Particulars
1 Unit Size : 10 Female Buffalo
2 Type of animal : Female Buffalo
3 Unit Cost (Rs.) : 700000
Margin Money -
4 : 70000
10% (Rs.)
5 Bank Loan (Rs.) : 630000
Repayment period
6 : 5 Years
(years)

Interest rate (% 11.30

7 :
p.a.)

8 Current Ratio : 1.73

9 TOL / TNW : 0.80

Debt Service
10 : 2.32
Coverage Ratio
Note: The above figures are projections only on the basis of assumptions
made & information given to us
 Annexure - 2
Techno-Economics of 10 Female Buffalo
Assumptions:-
1. The animal shall be purchased from the local breeding tracts.
2. The cost of Buffalo shall be Rs. 70,000/-.
3. The lactation period and lactation yield shall be 280 days and 2800 lit. per animal
respectively.
4. The animals purchased shall be insured @ 2% P.A.
5. The rate of interest on term loan shall be 11.30% P.A. and repayment period is 5
years.
6. Average sale price of milk shall be Rs. 50/- lit.
7. Average purchase price of Green fodder shall be Rs.200/- per quintal.
8. Purchase price of wheat-bhussa shall be Rs.350/- per quintal.
9. Average purchase price of balanced cattle feed shall be Rs.2000/- per quintal.
10. Labour charges shall be Rs. 13500/- per labour (2 labourer) per month.
11. Vety. Aid @ Rs.2500/- per animal shall be incurred.
12. The daily allowances of green fodder, dry fodder and concentrates for milch
animals/calves per day shall be as follow:-

Green Fodder Dry Fodder Concentrates

Kg kg kg
Lactation period 40 5 5
Dry period 40 5 2

13. No Depreciation on Livestock shall be charged.

14. All the receipts and expenditure (except Interest on Term Loan and Insurance)
have been increased by 5% every year.
 Annexure - 2
Techno-Economics of 10 Female Buffalo

Assumptions:-
1. The animal shall be purchased from the local breeding tracts.
2. The cost of Buffalo shall be Rs. 70,000/-.
3. The lactation period and lactation yield shall be 280 days and 2800 lit. per animal
respectively.
4. The animals purchased shall be insured @ 2% P.A.
5. The rate of interest on term loan shall be 11.30% P.A. and repayment period is 5
years.
6. Average sale price of milk shall be Rs. 50/- lit.
7. Average purchase price of Green fodder shall be Rs.200/- per quintal.
8. Purchase price of wheat-bhussa shall be Rs.350/- per quintal.
9. Average purchase price of balanced cattle feed shall be Rs.2000/- per quintal.
10. Labour charges shall be Rs. 13500/- per labour (2 labourer) per month.
11. Vety. Aid @ Rs.2500/- per animal shall be incurred.
12. The daily allowances of green fodder, dry fodder and concentrates for milch
animals/calves per day shall be as follow:-

Green Fodder Dry Fodder Concentrates

Kg kg kg
Lactation period 40 5 5
Dry period 40 5 2

13. No Depreciation on Livestock shall be charged.

14. All the receipts and expenditure (except Interest on Term Loan and Insurance)
have been increased by 5% every year.
 CHARNJEET KAUR C/O MANPREET SINGH
Village Mian, (Mansa) 151505

INDEX

ANNEXURE NO. SUBJECT

1 PROJECT AT A GLANCE

TECHNO - ECONOMIC PARAMETERS AND

2
ASSUMPTIONS MADE

3 SUMMARY OF COSTS

4 PROJECTED BALANCE SHEET

5 PROJECTED CASH FLOW STATEMENT

6 PROJECTED PROFITABILITY STATEMENT

SCHEDULE OF TERM LOAN REPAYMENT &

7
INTEREST CALCULATION

8 SCHEDULE OF DEBT SERVICE COVERAGE RATIO

9 STATEMENT OF NPV AND IRR

10 STATEMENT OF TOL / TNW

11 STATEMENT OF CURRENT RATIO

 Annexure - 1

Village Mian, (Mansa) 151505

PROJECT AT A GLANCE

S. No. Particulars
1 Unit Size : 10 Female Buffalo
2 Type of animal : Female Buffalo
3 Unit Cost (Rs.) : 700000
Margin Money -
4 : 70000
10% (Rs.)
5 Bank Loan (Rs.) : 630000
Repayment period
6 : 5 Years
(years)

Interest rate (%
7 : 11.30
p.a.)

8 Current Ratio : 1.73

9 TOL / TNW : 0.80

Debt Service
10 : 2.31
Coverage Ratio
Note: The above figures are projections only on the basis of assumptions
made & information given to us
 CHARNJEET KAUR C/O MANPREET SINGH
Annexure - 3
Village Mian, (Mansa) 151505

SUMMARY OF COSTS
S. No. Item Specifications Physical Unit Cost Total Cost (Rs.)
Unit (Rs./Unit)
A. CAPITAL EXPENDITURE
(i) Cost of 10 Buffalo Female Buffalo 10 70000 7,00,000.00
Total Capital Expenditure 7,00,000.00
Total Project Cost 7,00,000.00

B. FEEDING COST
-Feeding Cost
(i) Green Fooder
(i) Lactation Period is of 280 days
(ii) Total cows are 10
(iii) Daily allowance of Green
(a) Lactation Period Fodder is 40 kg for 1 animal 10.00 40 kg 2,24,000.00
(iv) Purchase price of Fodder is Rs.
200/- per quintal
[(280x10x40x200)/100]
(i) Dry Period is of 80 days
(ii) Total cows are 10
(iii) Daily allowance of Green
(b) Dry Period Fodder is 40 kg for 1 animal 10.00 40 kg 64,000.00
(iv) Purchase price of Fodder is Rs.
200/- per quintal
[(80x10x40x200)/100]
(ii) Dry Fooder
(i) Lactation Period is of 280 days
(ii) Total Buffalo are 10
(iii) Daily allowance of Green
(a) Lactation Period Fodder is 5 kg for 1 animal 10.00 5 kg 49,000.00
(iv) Purchase price of Fodder is Rs.
350/- per quintal
[(280x10x5x350)/100]
(i) Dry Period is of 80 days
(ii) Total Buffalo are 10
(iii) Daily allowance of Green
(b) Dry Period Fodder is 5 kg for 1 animal 10.00 5 kg 14,000.00
(iv) Purchase price of Fodder is Rs.
350/- per quintal
[(80x10x5x350)/100]
(iii) Concentrates
(i) Lactation Period is of 280 days
(ii) Total Buffalo are 10
(iii) Daily allowance of Green
(a) Lactation Period Fodder is 5 kg for 1 animal 10.00 5 kg 2,80,000.00
(iv) Purchase price of Fodder is Rs.
2000/- per quintal
[(280x10x5x2000)/100]
 (i) Dry Period is of 80 days
(ii) Total Buffalo are 10
(iii) Daily allowance of Green
(b) Dry Period Fodder is 2 kg for 1 animal 10.00 2 kg 32,000.00
(iv) Purchase price of Fodder is Rs.
2000/- per quintal
[(80x10x2x2000)/100]
Total Feeding cost 6,63,000.00

Note: The above figures are projections only on the basis of assumptions made &
information given to us
 CHARNJEET KAUR C/O MANPREET SINGH
Village Mian, (Mansa) 151505

PROJECTED BALANCE SHEET

(Rs.)
Projected Projected Projected Projected Projected
Particulars
31.03.2024 31.03.2025 31.03.2026 31.03.2027 31.03.2028
A) CAPITAL & LIABILITIES
Capital Account 2,36,265 3,72,424 5,10,680 6,73,427 8,43,265
Secured Loan
Term Loan 5,29,227 4,17,117 2,92,395 1,53,641 -
Current Liabilities & Provisions
Sundry Creditors 1,12,710 83,538 87,715 92,101 96,706
Other Current Liabilities 45,360 47,628 50,009 52,510 55,135
Total of Current Liabilities & Provisions 1,58,070 1,31,166 1,37,724 1,44,611 1,51,841
GROSS TOTAL 9,23,562 9,20,707 9,40,799 9,71,678 9,95,106
B) ASSETS
Gross Fixed Assets
(i) Live Stock 7,00,000 7,00,000 7,00,000 7,00,000 7,00,000
Total Gross Fixed Assets 7,00,000 7,00,000 7,00,000 7,00,000 7,00,000
Less:- Depreciation - - - - -
Net Fixed Asset 7,00,000 7,00,000 7,00,000 7,00,000 7,00,000
CURRENT ASSET LOAN & ADVANCES
Cash & Bank Balance 13,562 14,907 24,709 44,784 56,867
Sundry Debtors and Debit Balances 2,10,000 2,05,800 2,16,090 2,26,895 2,38,239
Total of Current Assets & Advances 2,23,562 2,20,707 2,40,799 2,71,678 2,95,106
GROSS TOTAL 9,23,562 9,20,707 9,40,799 9,71,678 9,95,106
Note: The above figures are projections only on the basis of assumptions made & information given to us
 CHARNJEET KAUR C/O MANPREET SINGH
Village Mian, (Mansa) 151505

CASH FLOW ANALYSIS

Years
Particulars Projected Projected Projected Projected Projected
31.03.2024 31.03.2025 31.03.2026 31.03.2027 31.03.2028
(Rs.)
Net Profit 2,86,265 3,16,159 3,48,256 3,82,747 4,19,838
Add: Interest on Term Loan 70,875 59,538 46,926 32,894 17,285
Net Profit before Interest 3,57,140 3,75,697 3,95,182 4,15,641 4,37,123
Less: Repayment of Loan (1,71,648) (1,71,648) (1,71,648) (1,71,648) (1,70,926)
Less: Withdrawal by Prop. (1,20,000) (1,80,000) (2,10,000) (2,20,000) (2,50,000)

Add: Change in S. Creditors 1,12,710 (29,172) 4,177 4,386 4,605

Add: Change in Current Liab. 45,360 2,268 2,381 2,500 2,625
Add: Capital by Proprietor 70,000
Add: Bank Loan 6,30,000

Less: Addition in Fixed Assets (Live Stock) (7,00,000) - - - -

Less: Change in S.Debtors (2,10,000) 4,200 (10,290) (10,805) (11,345)

Change in Cash & Bank 13,562 1,345 9,802 20,075 12,083

Opening Cash & Bank - 13,562 14,907 24,709 44,784
Closing Cash & Bank 13,562 14,907 24,709 44,784 56,867
Note: The above figures are projections only on the basis of assumptions made & information given to us
 CHARNJEET KAUR C/O MANPREET SINGH
Village Mian, (Mansa) 151505 Annexure - 6

PROJECTED PROFT & LOSS ACCOUNT

(Rs.)
Projected Projected Projected Projected Projected
Particulars 31.03.2024 31.03.2025 31.03.2026 31.03.2027 31.03.2028
Sale of Milk 14,00,000 14,70,000 15,43,500 16,20,675 17,01,709
Total 14,00,000 14,70,000 15,43,500 16,20,675 17,01,709
Purchases
Feeding Cost
-Lactation Period 5,53,000 5,80,650 6,09,683 6,40,167 6,72,175
-Dry Period 1,10,000 1,15,500 1,21,275 1,27,339 1,33,706
Veterinary Care Expense 25,000 26,250 27,563 28,941 30,388
Labour charges 3,24,000 3,40,200 3,57,210 3,75,071 3,93,824
Electricity and Fuel 16,860 17,703 18,588 19,518 20,493
Interest on Term Loan 70,875 59,538 46,926 32,894 17,285
Insurance of Animals 14,000 14,000 14,000 14,000 14,000
Net Profit 2,86,265 3,16,159 3,48,256 3,82,747 4,19,838

Note: It is assumed that loan will be sanctioned in March 2023 end and hence first Financial Year ending is considered as 31.03.2024.
 CHARNJEET KAUR C/O MANPREET SINGH
Annexure - 7
Village Mian, (Mansa) 151505

REPAYMENT OF TERM LOAN

(Rs.)
Term Loan 630000
Repayment
Period 5
(Years)
Interest 11.30%
(Rs.)
Years Opening Balance Interest Repayment Closing Balance

Projected
630000 70875 171648 529227
31.03.2024

Projected
529227 59538 171648 417117
31.03.2025

Projected
417117 46926 171648 292395
31.03.2026

Projected
292395 32894 171648 153641
31.03.2027

Projected
153641 17285 170926 0
31.03.2028

Note: It is assumed that loan will be sanctioned in March 2023 end and hence first Financial
Year ending is considered as 31.03.2024.
 CHARNJEET KAUR C/O MANPREET SINGH
Annexure - 8
Village Mian, (Mansa) 151505

SCHEDULE OF DEBT SERVICE COVERAGE RATIO

(RS.)
Projected Projected Projected Projected Projected
S.NO. PARTICULARS Total
31.03.2024 31.03.2025 31.03.2026 31.03.2027 31.03.2028
A CASH ACCRUALS

1 Net Profit 2,86,265 3,16,159 3,48,256 3,82,747 4,19,838

2 Interest on Term Loan 70,875 59,538 46,926 32,894 17,285

TOTAL (A) 3,57,140 3,75,697 3,95,182 4,15,641 4,37,123 19,80,783

B DEBT REPAYMENT

1 Term Loan Installment 1,71,648 1,71,648 1,71,648 1,71,648 1,70,926

TOTAL (B) 1,71,648 1,71,648 1,71,648 1,71,648 1,70,926 8,57,518

DEBT SERVICE COVERAGE RATIO
2.08 2.19 2.30 2.42 2.56 2.31
(A/B)
Note: The above figures are projections only on the basis of assumptions made & information given to us
 CHARNJEET KAUR C/O MANPREET SINGH
Annexure - 9
Village Mian, (Mansa) 151505

STATEMENT OF NPV AND IRR

(Amount Rs.)
Projected Projected Projected Projected Projected
S.No. Particulars
31.03.2024 31.03.2025 31.03.2026 31.03.2027 31.03.2028
I Cost
1 Capital cost 7,00,000 - - - -
2 Recurring cost
a Feeding Cost
-Lactation Period 5,53,000 5,80,650 6,09,683 6,40,167 6,72,175
-Dry Period 1,10,000 1,15,500 1,21,275 1,27,339 1,33,706
b Veterinary Care Expense 25,000 26,250 27,563 28,941 30,388
c Labour charges 3,24,000 3,40,200 3,57,210 3,75,071 3,93,824
d Electricity and Fuel 16,860 17,703 18,588 19,518 20,493
e Interest on Term Loan 70,875 59,538 46,926 32,894 17,285
f Insurance 14,000 14,000 14,000 14,000 14,000
Total Cost 18,13,735 11,53,841 11,95,244 12,37,928 12,81,870
II Benefits
a Sale of Milk 14,00,000 14,70,000 15,43,500 16,20,675 17,01,709
Total Benefit 14,00,000 14,70,000 15,43,500 16,20,675 17,01,709
Net Benefit (Total Cost- Total Benefit) (4,13,735) 3,16,159 3,48,256 3,82,747 4,19,838
NPV @ 15% 5,35,847

PV factor @ 15% 0.8696 0.7561 0.6575 0.5718 0.4972

PV of future benefits @ 15% 12,17,391 11,11,467 10,14,851 9,26,702 8,46,090
PV of future costs @ 15% 16,68,465 8,72,419 7,85,873 7,07,847 6,37,346
BCR 1.10

Note: NPV is positive

 CHARNJEET KAUR C/O MANPREET SINGH
Village Mian, (Mansa) 151505 Annexure - 10

SCHEDULE OF TOTAL OUTSIDE LIABILITIES TO TANGIBLE NET WORTH (TOL / TNW)

(RS.)
Projected Projected Projected Projected Projected
S. No. Particulars TOTAL
31.03.2024 31.03.2025 31.03.2026 31.03.2027 31.03.2028
A TOTAL OUTSIDE LIABILITIES (TOL)

1 Long Term Liabilities 5,29,227 4,17,117 2,92,395 1,53,641 -

2 Short Term Liabilities 1,58,070 1,31,166 1,37,724 1,44,611 1,51,841

TOTAL (A) 6,87,297 5,48,283 4,30,119 2,98,252 1,51,841 21,15,792

B TANGIBLE NET WORTH (TNW)

1 Capital 2,36,265 3,72,424 5,10,680 6,73,427 8,43,265

TOTAL (B) 2,36,265 3,72,424 5,10,680 6,73,427 8,43,265 26,36,061

TOL / TNW (A/B) 2.91 1.47 0.84 0.44 0.18 0.80

Note: The above figures are projections only on the basis of assumptions made & information given to us
 CHARNJEET KAUR C/O MANPREET SINGH
Village Mian, (Mansa) 151505 Annexure - 11

SCHEDULE OF CURRENT RATIO

(RS.)
Projected Projected Projected Projected Projected
S.NO. PARTICULARS TOTAL
31.03.2024 31.03.2025 31.03.2026 31.03.2027 31.03.2028
A CURRENT ASSETS

1 Cash & Bank Balance 13,562 14,907 24,709 44,784 56,867

2 Sundry Debtors & Debit Balances 2,10,000 2,05,800 2,16,090 2,26,895 2,38,239

TOTAL (A) 2,23,562 2,20,707 2,40,799 2,71,678 2,95,106 12,51,853

B CURRENT LIABILITIES

1 Sundry Creditors 1,12,710 83,538 87,715 92,101 96,706

2 Other Current Liabilities 45,360 47,628 50,009 52,510 55,135

TOTAL (B) 1,58,070 1,31,166 1,37,724 1,44,611 1,51,841 7,23,412

CURRENT RATIO (A/B) 1.41 1.68 1.75 1.88 1.94 1.73
Note: The above figures are projections only on the basis of assumptions made & information given to us