PROJECT REPORT

SPICES MAKING UNIT

05 MAY 2024
ANJANI DEVI
GRAM-MOHIUDDIN NAGAR, BLOCK-MOHIUDDIN NAGAR, SAMASTIPUR, BIHAR 848501
 BIO DATA
• NAME OF PROPRIETOR :- ANJANI DEVI
• ADRESS OF THE UNIT :- VILL-MOHIUDDIN NAGAR
MOHIUDDIN NAGAR
SAMASTIPUR, BIHAR
848501
• UNIT LOCATION :- RURAL
• PRODUCT ITEM :- SPICES POWDER
• CATRGORY :- MANUFACTURING
• KIND OF FIRM :- PROPRIETORSHIP
• NAME OF APLICANT :- ANJANI DEVI
• NAME OF FATHER :- RAM BABU SAH
• NAME OF HUSBAND :- MANOJ KUMAR SAH
• NAME OF MOTHER :- MANIKA DEVI
• GENDER :- FEMALE
• DATE OF BIRTH :- 01-JAN-1985
• RESIDENTIAL ADDRESS :- VILL-MOHIUDDIN NAGAR
MOHIUDDIN NAGAR
SAMASTIPUR, BIHAR
848501
• MOBILE NUMBER :- 6289967521
• ACADEMIC QUALIFICATION :- UNDER 8TH
• SOCIAL CATEGORY :- EBC
• PAN NO :- FNGPD8703R
• ADHAAR NO :- 2837 6341 0014
• LAND :- OWNED

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 PROJECT SUMMARY

1. Name of the proposed project : Spices Making Unit

2. Nature of proposed project : Proprietorship

3. Proposed project capacity : 80,000 Kg/annum

4. Raw materials : Haldi, Dhaniya, Chili,

5. Major product outputs : Haldi Powder, Dhaniya Powder, Chili Powder

6. Total project cost : Rs. 9,99,653.00

• Land development, building & Civil : Rs. 1,14,000.00

Construction

• Machinery and equipment’s : Rs. 6,50,000.00

• Miscellaneous Fixed Assets : Rs. 60,000.00

• Working capital : Rs. 1,75,653.00

9. Profit after Depreciation, Interest & Tax

• 1styear : Rs. 6,53,667.00

• 2ndyear : Rs. 8,01,935.00

• 3rd year : Rs. 9,57,599.00

• 4th year : Rs. 9,88,496.00

11. Average DSCR : 4.60

12. Term loan repayment : 5 Years

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 ABOUT THE PRODUCT

INTRODUCTION:
Spices are very important and essential for adding and enhancing flavour, taste and scent in
preparation of food. They are also useful in preparation of certain medicine. India is the
largest producer, consumer and exporter of spices Andhra Pradesh, Gujarat, Orissa, Rajasthan
are major states producing varieties of spices. Spices are heavily used in Indian household for
preparing food. They give aroma, taste and flavour to food. Curry powder, extensively used
in Indian recipes, contains some time more than 20 different spices. Even in foreign
countries, Indian spices are extensively used in preparation of food. Some of spices have
medicinal properties and can be used in preparation of medicines and ayurvedic & cosmetic
products.

PROMOTER & MANAGEMENT:

The promoter is reported to have good financial standing presently. The Promoters is actively
associated with the implementation of the project. Promoter is over all in charge of the
working of the unit.

MARKET AND DEMAND:

India is largest consumer of spices and with the growth of population; there will be huge
demand of spices which is increasing. Moreover, the varied tastes and habits of the people,
there is even increasing demand for high quality spice and curry/masala powder. Even there
is a good scope for exporting spices to other countries. There is a growing demand of
pure/unadulterated grounded spices from the customers who are increasingly informed these
days. With various food standards such as FSSAI, FSMS, ISI and ISO standards
implementation, there can be huge market growth for manufacturer for packed spice and
curry powder. Raw materials are easily available from the local market anywhere in India.
Marketing of spices is not complicated. Umpteen number of retail shops in and around the
unit would be the prospective buyers of spices in bulk.

MAJOR BENEFITS OF THE PROJECT:

I. Easy availability of material.
II. Job opportunity for local people.

PLANT, MACHINERY AND EQUIPMENTS:

Plant, Machinery, Tools, Shed and other equipment’s required for the proposed unit are
available indigenously. The various items required for installation of Rs. 9,83,000/- details as
per quotation attached herewith.

QUALITY CONTROL:
The concern proposed to set up above unit for which provision testing equipment have been
proposed in the project report.

TECHNICAL KNOW- HOW

The process for sale of products is simple and no sophisticated technology is involved. There
is no requirement of any type of technical knowhow.

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TRANSPORTATION:
The proposed location is connected by road and near to the city. Thus, the unit is not likely to
face difficulty on account of transportation.

UTILITIES:
a) Power: The total connected load for the smooth operations of the unit has been
estimated and Electricity connection will be obtained as per required load including
lighting load if required.
b) Water: The water will be available. Necessary provision for storage of water and
water supply has been made in the project cost.

MANPOWER:
The unit would require total manpower of person of different category. The details of
salary/wages proposed to be paid together with annual Salary/wages bill is given in separate
annexure.

DEPRECIATION
The depreciation on fixed assets has been computed in annexure of this project report in
accordance with the admissibility of the same under the Income Tax Act, 1961.

MANUFACTURING PROCESS:

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 CAPACITY, UTILIZATION, PRODUCTION & OUTPUT: -

COMPUTATION OF PRODUCTION OF SPICES POWDER

Items to be Manufactured Spices powder

Machine capacity Per hour 18.75 Kg

Total working Hours 8 Hours

Machine capacity Per Day 150 Kg

Working days in a month 25 Days

Working days per annum 300 Days

Machine capacity per annum 45,000 Kg/Annum

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 MEANS OF FINANCE

MEANS OF FINANCE (TERM LOAN): -

Own Contribution 10% RS. 82,400.00

Bank Finance 90%

Term Loan RS. 7,41,600.00

Govt. Subsidy 35% RS. 2,88,400.00

MEANS OF FINANCE (WORKING CAPITAL): -

Own Contribution 20% RS. 35,131.00

Bank Finance 80%

Working Capital RS. 1,40,522.00

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 COST OF PROJECT
A. Fixed Capital Investment
a. Land : 600 Own

b. Work shed Area Sq. Ft Rate in Rs. Amt. In Rs.

RCC/Asbestos shed 600 190.00 114000.00

Total 114000.00

c. Machinery Qty. Rate Amount in Rs.

MASALA MACHINE WITH CYCLONE 3 HP 2 190000.00 380000.00
AUTOMATIC HEAVY DUTY WITH CYCLONE
07 1 240000.00 240000.00
PACKING MACHINE 1 30000.00 30000.00

Total 650000.00
d. Preliminary & Pre-operative Cost: Rs. 35000.00

e. Furniture & Fixtures : Rs. 25000.00

f. Contingency/Others/Miscellaneous
: Rs. 0.00

Total Capital Expenditure : Rs. 824000.00

Working Capital : Rs. 175653.00

Total Cost Project : Rs. 999653.00

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 Repayment Shedule of Term Loan and Working Capital

Term Loan
Interest
@
Year Opening Balance Instalments Closing Balance
11.00%
1st 741600 74160 667440 81576
2nd 667440 148320 519120 73418
3rd 519120 148320 370800 57103
4th 370800 148320 222480 40788
5th 222480 148320 74160 24473
6th 74160 148320 0 8158
7th 0 0 0 0
8th 0 0 0 0

Working capital
Interest
Year Opening Balance Instalments Closing Balance @
11.00%

1st 140522 14052 126470 15457

2nd 126470 28104 98365 13912
3rd 98365 28104 70261 10820
4th 70261 28104 42157 7729
5th 42157 28104 14052 4637
6th 14052 28104 0 1546
7th 0 0 0 0
8th 0 0 0 0

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 Statement Showing The Depreciation on Fixed
Assets

WORKSHED @ 10.00%

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year

Opening Balance 114000 102600 92340 83106 74795

Depreciation 11400 10260 9234 8311 7480

Closing Balance 102600 92340 83106 74795 67316

MACHINERY @ 15.00%

Opening Balance 650000 552500 469625 399181 339304

Depreciation 97500 82875 70444 59877 50896

Closing Balance 552500 469625 399181 339304 288408

TOTAL DEPRECIATION

Workshed 11400 10260 9234 8311 7480

Machinery 97500 82875 70444 59877 50896

Total 108900 93135 79678 68188 58375

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 SCHEDULE OF SALES REALIZATION

DETAILS OF SALES
Amount in Rs.
Rate/ No. of
Particulars of Product
Pair/Unit Pair/Unit

HALDI POWDER 120.00 20000 2400000.00

DHANIYA POWDER 130.00 15000 1950000.00
CHILLI POWDER 220.00 10000 2200000.00

Total 6550000.00

CAPACITY UTILIZATION OF SALES

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year

Capacity Utilization 70% 80% 90% 90% 90%

Sales / Receipts 4585000 5240000 5895000 5895000 5895000

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 ESTIMATE OF RAW MATERIALS & WAGES
RAW MATERIALS
Particulars Unit Rate/unit Reqd.Unit Amount in Rs.
HALDI KG 70.00 20500 1435000.00
DHANIYA KG 65.00 15400 1001000.00
CHILI KG 170.00 10300 1751000.00

Total 4187000.00

Wages
No. of Wages Amount in Rs.
Particulars
Worker Per Month (Per Annum)
UNSKILLED 2 8000.00 192000.00
SKILLED 2 12000.00 288000.00

Total 4 480000.00

Repairs and Maintenance : Rs. 131000.00

Power and Fuel : Rs. 196500.00

Other Overhead Expenses : Rs. 65500.00

ADMINISTRATIVE EXPENSES
Telephone Expenses 65500.00

Stationery & Postage 65500.00

Advertisement & Publicity 65500.00

Workshed Rent 0.00

Other Miscellaneous Expenses 65500.00

Total 262000.00

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 CAPACITY UTILIZATION OF
MANUFACTURING & ADMINISTRATIVE
EXPENSES:

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year

Capacity Utilization 70% 80% 90% 90% 90%

Manufacturing Expenses

Raw materials 2930900 3349600 3768300 3768300 3768300

Wages 336000 384000 432000 432000 432000

Repairs & Maintenance 91700 104800 117900 117900 117900

Power & Fuel 137550 157200 176850 176850 176850

Other Overhead
Expenses 45850 52400 58950 58950 58950

Administrative Expenses

Salary 0 0 0 0 0
Postage Telephone
Expenses 45850 52400 58950 58950 58950

Stationery & Postage 45850 52400 58950 58950 58950

Advertisement & Publicity 45850 52400 58950 58950 58950

Workshed Rent 0 0 0 0 0
Other Miscellaneous
Expenses 45850 52400 58950 58950 58950

Total: 3725400 4257600 4789800 4789800 4789800

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 ASSESSMENT & ESTIMATE OF
WORKING CAPITAL
1. ASSESSMENT OF WORKING CAPITAL

Particulars Amount in Rs.

Sale 6550000.00

Manufacturing Expenses
Raw Material 4187000.00
Wages 480000.00
Repair & Maintenance 131000.00
Power & Fuel 196500.00
Other Overhead Expenses 65500.00

Production Cost 5060000.00

Administrative Cost 262000.00
Manufacturing Cost 5322000.00

2. WORKING CAPITAL ESTIMATE

Element of Working
Capital No of Days Basis Amount in Rs.
Material Cost 0.00

Stock in process 2 Production Cost 33733.00

Finished goods 3 Manufacturing Cost 53220.00

Receivable by 5 Manufacturing Cost 88700.00

Total Working Capital Requirement Per Cycle 175653.00

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 PROJECTED PROFIT & LOSS ACCOUNT
Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year
Sales / Receipts 4585000 5240000 5895000 5895000

4585000 5240000 5895000 5895000

Manufacturing Expenses
Raw materials 2930900 3349600 3768300 3768300
Wages 336000 384000 432000 432000
Repairs & Maintenance 91700 104800 117900 117900
Power & Fuel 137550 157200 176850 176850
Other Overhead
Expenses 45850 52400 58950 58950
Depreciation 108900 93135 79678 68188
Production Cost 3650900 4141135 4633678 4622188
Administrative Expenses
Salary 0 0 0 0
Postage Telephone
Expenses 45850 52400 58950 58950
Stationery & Postage 45850 52400 58950 58950
Advertisement & Publicity 45850 52400 58950 58950
Workshed Rent 0 0 0 0
Other Miscellaneous
Expenses 45850 52400 58950 58950
Administrative Cost 183400 209600 235800 235800
Interest on Bank credit @
11%
Term Loan 81576 73418 57103 40788
Working Capital Loan 15457 13912 10820 7729
Cost of Sale 3931333 4438065 4937401 4906504
Net Profit Before Tax 653667 801935 957599 988496
Less Tax 0.00 0.00 0.00 0.00
Net Profit 653667 801935 957599 988496

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 CALCULATION OF DEBT SERVICE CREDIT RATIO
(D.S.C.R)

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year

Net Profit 653667 801935 957599 988496

Add:

Depreciation 108900 93135 79678 68188

TOTAL - A 762567 895070 1037277 1056683

Payments:

On Term Loan:

Interest 81576 73418 57103 40788

Instalments 74160 148320 148320 148320

On Working Capital

Interest 15457 13912 10820 7729

TOTAL - B 171193 235650 216243 196837

D.S.C.R = A/B
4.45 3.80 4.80 5.37
Average D.S.C. R

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 PROJECTED BALANCE
SHEET

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year

LIABILITIES:

Beneficiary's Capital 117531 117531 117531 117531

Profit 653667 801935 957599 988496

Term Loan 741600 667440 519120 370800

Working Capital Loan 140522 126470 98365 70261

Current Liabilities 0 0 0 0

Sundry Creditors 0 0 0 0

1653320 1713376 1692615 1547088

ASSETS:

Gross Fixed Assets: 789000 680100 586965 507287

Less: Depreciation 108900 93135 79678 68188

Net Fixed Assets 680100 586965 507287 439099

Preliminary & Pre-Op.
Expenses 35000 26250 19688 14766

Current Assets 140522 126470 98365 70261

Cash in Bank/Hand 832698 999941 1086963 1037727

Total 1653320 1713376 1692615 1547088

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 CASH FLOW STATEMENT

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year

Net Profit 653667 801935 957599 988496

Add: Depreciation 108900 93135 79678 68188

Term Loan 741600 667440 519120 370800

Working Capital Loan 140522 126470 98365 70261

Beneficiary's Capital 117531 0 0 0

Total 1762220 1688980 1654762 1497744

Total Fixed Capital

Invested 824000

Repayment of Term Loan 74160 148320 148320 148320

Repayment of WC Loan 14052 28104 28104 28104

Current Assets 140522 126470 98365 70261

Total 228734 302894 274790 246685

Opening Balance 0 1533485 2919571 4299543

Surplus 1533485 1386086 1379972 1251059

Closing Balance 1533485 2919571 4299543 5550602

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 BREAK EVEN POINT AND
RATIO ANALYSIS

Particulars 0 Year 1st Year 2nd Year 3rd Year 4th Year

Fixed Cost 373876 376153 372581 344776

Variable Cost 3666357 4155047 4644498 4629916

Total Cost 4040233 4531200 5017079 4974692

Sales 4585000 5240000 5895000 5895000

Contribution (Sales-VC) 918643 1084953 1250502 1265084

B.E.P in % 40.70% 34.67% 29.79% 27.25%

Break Even Sales in Rs. 1866037 1816708 1756386 1606576

Break Even Units 15550 15139 14637 13388

Current Ratio 0.76 0.48 0.40 0.31

Net Profit Ratio 14.26% 15.30% 16.24% 16.77%

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 THIS PROJECT REPORT HAS BEEN PREPARED ON DATA
FURNISHED BY THE ENTERPRENEUR WHOSE DETAILS
ARE GIVEN IN THE APPLICATION

DATE: - 05-05-2024 Authorized Signatory

PLACE: - MOHIUDDIN NAGAR

ANJANI DEVI

PREPARED BY: -

RITESH KUMAR
(GSTP1092)
Mob no- 9903393616

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