PRESENTATION ON FESIBILITY REPORT ON

FERTILIZER
GROUP :- P

“ The best fertilizer for a piece of land is the footprints of its owner.”
PART :- 1

 Introduction to feasibility report

 Basic assumption
 Statement of cost of product
 Introduction to feasibility report :-

 What’s the meaning of feasibility mean ?

capable of being done or carried out

 what is a feasibility study ?

a preliminary exploration of a proposed project or undertaking to determine its merits
and viability.
 Why company do feasibility report ?
examine potential risks to determine whether they're worth taking.
 PARTNERSHIP INFORMATION FIRM :-
PARTICULARS ABOUT THE COMPANY
Name Happy Soil Pvt. Ltd.
Logo

Tagline We make your soil happy and healthy

Address A-12, Sahajanand Complex,
National Highway-47,
Ramol, Ahmedabad.
Pin code: 382449.
Contact no. +91 9876543210
E-mail ID happysoil37@gmail.com
Website www.happysoilfertilizers.com
Constitution Partnership Firm
Status of the company Small scale company
Owner’s fund Rs. 55,00,000
ASSUMPTION :-
 Firm will follow accounting year 1st april to 31st march
 All partners are active
 No drawing will be made by the partners till 5 years is completed
 The profit and loss sharing ratio will be the same
 Whatever profit is generated by the firm 60 % will be distributed among the
partners and 40 % transferred to the reserves of the firm
 The number of working days are 300 days a year
 No interest is provided to the partners on their capital
 Factory rent assumed 32,000
 Machines have 9 years of useful life
 Straight line method is used for calculating
 The text rate asuummed to be 30 %
 Advertisement expenses are incurred in the first year which the benefit will be
delivered in the first year by it self
STATEMENT SHOWING COST OF THE PROJECT :-

Particulars Notes Amount (Rs)

Machinery 1 11,75,000

Preliminary expenses 2 44,400

Miscellaneous Assets 3 6,02,230
Cost for Utilities and 4 40,000
Communication
Machineries for material 5 18,00,000
handling
Raw material purchased - 2,31,560
Contingency expenses - 1606810
TOTAL COST OF THE 55,00,000
PROJECT
PART :- 2
 Statement showing estimated sales and production
 Statement showing requirements of raw materials
 Statement overheads
 Statement showing working capital requirement
 Cost sheet
 Trading account, profit and loss , balance sheet and cash
flow statement
STATEMENT SHOWING ESTIMATED SALES AND PRODUCTION ( KG )

Particulars 2022- 2023- 2024- 2025- 2026-

2023 2024 2025 2026 2027

Opening _ 1,44,000k 1,72,800kg 1,92,960kg 2,12,832k

stock g g

Production 7,20,000k 7,20,000k 7,92,000k 8,71,200k 9,14,760k

g g g g g

Sales 5,76,000k 6,91,200k 7,71,840k 8,51,328k 9,02,074k

g g g g g

Closing stock 1,44,000k 1,72,800 1,92,960kg 2,12,832k 2,25,518k

g kg g g
STATEMENT SHOWING REQUIREMENTS OF RAW – MATERIAL ( UNITS ) :-
Products Raw material Price Quantity in Total
per gram gram price
Happy soil base dose Crop residues 50 250 gram 12500
fertilizer Leaf litter 30 200 gram 6000
cow dung 60 250 gram 15000
by product of 52 300 gram 15600
agriculture industry

Happy soil rapid chicken manure 32 200 gram 6400

growth biodiesel production
160 800 gram 128000

Happy soil roots Crop residues 56 280 gram 15680

protector Wood and Scrap 40 255 gram 10200
lumber
cow dung 52 215 gram 11180
domestic waste 44 250 gram 11000

Total 3000 2,31,560

STATEMENT SHOWING SALARY COST :-

Salary cost 2022-23 2023-24 2024-25 2025-26 2026-27

Workers 936000 1029600 1029600 1132560 1132560

Security 72000 79200 79200 87120 87120

guard

Sweeper 21600 23760 23760 26136 26136

Total 1029600 1132560 1132560 1245816 1244816

STATEMENT SHOWING FACTPRY OVER HEADS
Expenses 2022-23 In 2023-24 In 2024-25 In 2025-26 In 2026-27 In
(RS.) (RS.) (RS.) (RS.) (RS.)
Salary:
Workers 936000 1029600 1029600 1132560 1132560
Security guard 72000 79200 79200 87120 87120
Sweepers 21600 23760 23760 26136 26136
Other expenses: 1200000 1200000 1400000 1400000 1500000
Electricity
Repair and 84000 84000 92400 92400 92400
maintenance:
Machinery
Purchase expense -------- ---------- ----------- ------- ---------
Depreciation: on 176250 149812 127340 108239 92003
machines @ 15%
Insurance premium: 33600 33600 33600 33600 33600
Workers medical
insurance
Other utilities 25920 25920 110460 110460 25920
Factory rent 384000 384000 384000 384000 384000
Total 2933370 3009892 3280360 3374515 3373739
MACHINERY

Particulars Quantity Amount (RS.)

1. Cage crusher 1 90000

1. Mixing machine 1 75000

1. Drying machine 1 65000

1. Granulator 1 100000

1. Conveyor 2 500000

1. Packaging 1 345000

Total 7 1175000
STATEMENT SHOWING WORKING CAPTAL

Particular 2022-23 2023-24 2024-25 2025-26 2026-27

Current
assets:
Sundry 2,24,969 2,70,025 3,01,512 3,32,550 3,52,388
debtors
Cash 29,03,668 60,84,850 98,95,185 1,42,46,976 1,89,90,736

Total (A) 31,28,637 63,54,875 1,01,96,697 1,45,79,526 1,93,43,124

Current
liabilities:
Creditors 5,04,000 6,76,800 7,61,760 8,41,392 8,95,731
Total (B) 5,04,000 6,76,800 7,61,760 8,41,392 8,95,731
Net working
capital (A-B) 26,24,637 56,78,075 94,34,937 1,37,38,134 1,84,47,393
 STATEMENT SHOWING COST SHEET [ 2022 – 2023 ]
Particulars Total (RS.) Base Happy soil base dose Happy soil rapid growth Happy soil roots protector
fertilizer (Production 12,506) (Production 13,744)
(Production 18,750)

Per unit Total (RS.) Per unit Total (RS.) Per unit Total (RS.)

Direct material 2,31,560 2.62 49100 10.75 1,34,400 3.50 48,060

Direct wages 9,36,000 1:1:1 16.64 3,12,000 24.45 3,12,000 22.70 3,12,000

Prime cost 11,67,560 19.26 3,61,100 35.7 4,46,400 26.2 3,60,060

Factory overheads 20,33,370 1:1:1 36.15 6,77,790 54.20 6,77,790 49.31 6,77,790

Factory cost 32,00,930 55.41 10,38,890 89.9 11,24,190 75.51 10,37,850

Administrative overheads 8,23,063 1:1:1 14.63 2,74,354 21.94 2,74,354 19.96 2,74,354

Cost of Production 40,23,993 70.04 13,13,244 111.84 1,39,854 95.47 13,12,204

-closing stock of finished goods (26,26,650) (2,80,271) (2,62,447)

3750*70.04 2506*111.84 2749*95.47

Cost of production for good sold 70.4 10,50,594 111.84 11,18,273 95.47 10,49,753

Selling& Distribution overheads 25,36,000 1:1:1 56.35 8,45,333 84.53 8,45,333 76.88 8,45,333

Cost of sale /Total cost 126.39 18,95,927 196.37 19,63,606 172.35 18,95,090

Profit /Loss 123.61 18,54,073 53.63 5,36,394 77.65 8,53,660

Sales 250 37,50,000 250 25,00,000 250 2,74,875

TRADING ACCPUNT AND P&L ACOOUNT :-
 DATA OF YEAR 2022 – 2023
TRADING ACCOUNT [ 2023 ] P & L A/C [ 20023 ]
Particular Amt Particular Amt
Particular Amt Particular Amt

To admin overhead 8,23,063 By gross profit 57,97,820

To purchase 2,31,560 By sales 89,98,750

To selling & distribution 25,36,000

To direct labour 9,36,000

To preliminary expense written off 8880

To manufacturing o/Hs 20,33,370

To gross profit 57,97,820 To profit before tax 24,29,877

To tax paid (30 %) 7,28,963

Total 89,98,750 Total 89,98,750 To profit after tax 17,00,914

Total 57,97,820 57,97,820

DATA OF THE YEAR 2023 – 2024

TRADING ACCOUNT ( 2024 ) P & L A/C ( 2024 )

Particular Amt Particular Amt Particular Amt Particular Amt

To purchase 2,31,560 By sales 1,08,01,000 To admin overhead 8,23,06 By gross 74,29,9

3 profit 48
To direct labour 10,29,600 To selling & distribution 25,36,0
00
To manufacturing o/Hs 21,09,892 To preliminary expense 8880
written off
To gross profit 74,29,948 To profit before tax 40,62,0
05
To tax paid (30%) 12,18,6
02
Total 1,08,01,000 Total 1,08,01,000 To profit after tax 28,43,4
03
Total 74,29,9 74,29,9
48 48
DATA OF YHE YEAR 2024 – 2025
TRADING A/C ( 2025 ) P & L A/C ( 2025 )
Particular Amt Particular Amt
Particular Amt Particula Amt
r

To admin overhead 8,87,86 By gross 85,89,1

To purchase 2,61,398 By sales 1,20,60,50 3 profit 42
0 To selling & distribution 25,93,4
To direct labour 10,29,600 00
To preliminary expense
written off 8880
To manufacturing 21,80,360
o/Hs

To gross profit 85,89,142

To profit before tax 50,98,9
99
To tax paid ( %) 15,29,7
00
Total 1,20,60,50 Total 1,20,60,50
To profit after tax 35,69,2
0 0
99
Total 85,89,1 85,89,1
42 42
DATA OF THE YEAR 2025 – 2026

TRADING A/C ( 2026 ) P & L A/C ( 2026 )

Particular Amt Particula Amt Particular Amt Particular Amt

r

To purchase 2,97,857 By sales 1,33,02,00 To admin overhead 8,87,86 By gross 95,97,0

0 3 profit 68

To direct labour 11,32,560 To selling & distribution 27,93,5

60

To manufacturing 22,74,515 To preliminary expense 8880

o/Hs written off

To gross profit 95,97,068 To profit before tax 59,06,7

65

To tax paid (30%) 17,72,0

30

To profit after tax 41,34,7

35

Total 1,33,02,00 Total 1,33,02,00 Total 95,97,0 95,97,0

0 0 68 68
DATA OF THE YEAR 2026 – 2027

TRADING A/C ( 2027 ) P & L A/C ( 2027 )

Particular Amt Particula Amt Particular Amt Particular Amt
r
To admin overhead 9,59,143 By gross 1,04,72,
profit 870

To purchase 3,16,331 By sales 1,40,95,50 To selling & distribution 29,94,80

0 0
To direct labour 11,32,560
To preliminary expense 8880
written off
To manufacturing 21,73,739
o/Hs To profit before tax 65,10,04
7
To gross profit 1,04,72,87
0
To tax paid ( %) 19,53,01
4

To profit after tax 45,57,03

Total 1,40,95,50 Total 1,40,95,50 3
0 0
Total 1,04,72, 1,04,72,
870 870
BALANCE SHEET :-
 BALACE SHEETS :- ( 2022 – 2023 ) / ( 2023 – 2024 )
Liabilit Amt Asset Amt Liability Amt Asset Amt
y

Owners capital 25,00,00 Machinery 9,98,750

Owners 25,00,000 Machinery 11,75,000 Net profit of P. 0 (-)depreciation 8,48,938
capital (-)depreciation 1,76,250 9,98,750 Y. 17,00,91 1,49,812
4

Net profit 28,43,40 furniture 25,227

Net 17,00,914 furniture 28,030 3 (-)depreciation 2803 22,424
profit (-)depreciation 2,803 25,227
Creditors 6,76,800 Preliminary expense 35,520
Credito 5,04,000 Preliminary expense 35,520 Miscellaneous assets
rs 5,16,78
0 4,59,360
Miscellaneous assets
(-)depreciation 57,420
5,74,200
(-)depreciation 57,420 5,16,780
Debtors 2,70,025
Cash balance 60,84,85
0

Debtors 2,24,969
closing stock 1,72,800
Cash balance 29,03,668
77,21,11 77,21,11
closing stock 1,44,000 7 7
47,04,914 47,04,914
2024 – 2025 2025 – 2026
Liability Amt Asset Amt Liability Amt Asset Amt

Owners capital 25,00,0 Machinery Owners capital 25,00,00 Machinery

Net profit of P. 00 8,48,938 7,21,598 Net profit of P. 0 7,21,598 6,13,359
Y. 1 17,00,9 (-)depreciation Y. 1 17,00,91 (-)depreciation
Net profit of P. 14 1,27,340 Net profit of P. 4 1,08,239
Y. 2 28,43,4 Y. 2 28,43,40
03 Net profit of P. 3
Net profit 35,69,2 furniture Y. 3 35,69,29
99 22,424 19,621 9
(-)depreciation Net profit 41,34,73 furniture
2803 5 19,621 16,818
(-)depreciation
Creditors 7,61,76 Preliminary expense 35,520
2804
0
Creditors 8,41,392 Preliminary expense 35,520
Miscellaneous assets
Miscellaneous assets
4,59
4,01,940 4,01
,360 3,44,520
,940
(-)depreciation
(-)depreciation
57,420
57,420
Debtors 3,01,512
Cash balance 98,95,18 Debtors 3,32,550
5 Cash balance 1,42,46,
closing stock 1,92,960 976
total 1,13,75, total 1,13,75, closing stock 2,12,832
376 376 total 1,55,89, total 1,55,89,
743 743
 2026 – 2027
Liability Amt Asset Amt

Owners capital 25,00,000 Machinery 6,13,359

Net profit of P. Y. 1 17,00,914 (-)depreciation 92,003 5,21,356
Net profit of P. Y. 2 28,43,403
Net profit of P. Y. 3 35,69,299
Net profit of P. Y. 4 41,34,735

Net profit 45,57,033 furniture 16,818

(-)depreciation 2803 14015
Creditors 8,95,731 Preliminary expense 35,520
Miscellaneous assets
3,44,520
(-)depreciation 57,420 2,87,100

Debtors 3,52,388
Cash balance 1,89,90,736

Closing stock 2,25,518

total 2,02,01,115 total 2,02,01,115
CASH FLOW STATEMENT :-
 statement showing cash flow for year 2022 – 23
Particulars Amount Amount
Net profit 1700914
(A) Cash flow from operating activities
Cash Inflow
Cash received from customer
(8998750/12×30%=224968.74) 8773781 8773781
8998750-224969

Cash outflow
Cash paid to suppliers 504000
(576000-72000)

Cash paid to employees 2001600

General expense of business
Electricity bill 300000
Preliminary expense 44400
Repair and maintenance:
Transportation vehicle (Tempo) 18000
Machinery 84000 102000

Insurance premium:
Employee 33600
Transportation vehicle 9000 42600

Rent 384000
Cost of utilities 18700
Advertisement expense 6000
Packaging expense 2135000
Tax paid 728963
Total cash outflow 6267263
Net Cash flow from operating activities(A) 2506518
(B) Cash flow from investing activities
Cash Outflow
Machinery. 1175000
Machinery for material handling 750000
Miscellaneous asset 602230 2527230

Net cash flow from investing activities(B) 2527230

(C) Cash flow from financing activities
Cash Inflow
Owners capital 2500000
Net cash flow from financing activities(C) 2500000
Net cash and cash equivalent (A+B+C) 7533748
PART :- 3

 Evaluation of project through capital budgeting

 Financial analysis through ratios
 Conclusions
EVALUATION FO PROJECT

 NPV ( NWT PRESENT VALUE )

 IRR ( INTERNAL RATE OF RETURN )
 PROFIBILITY INDEX
 PLAY BACK PERIOD
 1 ] NPV ( NET PRESENT VALUE ) :-

Operating Cash Discounting  Calculation of Discounting rate:-

Year flow factor PV of Cash
CAGR = (PAT for 5th
@ 22% flow
year) ^ (PAT for 1st year) (1/n)-1
2022- 2506518 0.819 2052838
23 =(4557033) ^ (1/n)-(1700914)
2023- 3786382 0.672 2544449
24
2024- 4532792 0.552 2502101
= 1.2179-1
25
2025- 5331365 0.453 2415108 = 1.22-1
26
2026- 5553381 0.743 4126162 = 0.22*100
27 = 22%
13640658
Total  Net present value = PV of
Cash inflow – PV of Cash
outflow
= 13640658 - 5500000
NPV = 8140658 Rs.
 2 ] PLAY BACK PRIOD :-
Operating Commutative  Cost of project = 5500000 .
Y Cash flow operating Cash
ear flow

 Fraction Value = Cost of project - Cumulative

1. CFAT for year 2022-23
202 2506518 2506518
= 5500000-2506518
2-23
= 2993482

2. 202 3786382 6292900

3-24  Cash flow year
3. 202 4532792 10825692 3786382 = 1
4-25
2993482 = ?
4. 202 5331365 16157057
5-26
 The fraction Value = 2993482÷3786382
5. 202 5553381 21710438
6-27 = 0.80
= 0.8 years
 Payback period is 1.8 years.
 3 ] INTERNAL RATE OF RETURN :-
Year CFAT Disco PV of Cash Discou PV of Cash
unt flow nt flow
 Interpretation between 22% and
@ @ 25% 25%
22%
Internal Rate of Return=
2022-23 25065 0.819 2052838 0.800 2005214 22%+ 13640658-5500000 * 3%
18
13640658 - 10756657
2023-24 37863 0.672 2544449 0.640 2423284
82 22 % + 2.82 * 3 %
2024-25 45327 0.552 2502101 0.512 2320790
22 % + 8.46 %
92

2025-26 53313 0.453 2415108 0.410 2185860

30.46 %
65

2026-27 55533 0.743 4126162 0.328 1821509

81 INR = 30.46 %
PV of Cash 13640658 10756657
Inflow

PV of Cash (5500000) (5500000)

outflow

NPV 8140658 5256657

4 ] PROFIBILITY TAX :-

 Profitability index = PV Cash Inflow

PV Cash Outflow
= 13640658
5500000
= 2.48
Profitability index is 2.48
RATIO ANALYSIS :-
LIQUIDITY RATIO :-
1 . CURRENT RATIO :-

▪ In our calculations, the ratio shows a continuously increasing trend line and
hence, it shows that the company has relatively more assets than current
liabilities .
2 . LIQUID RATION :-

▪ In our calculations, the ratio has a continuous increasing trend

which implies that the company’s liquidity position is quite
good.
3 . QUICK RATIO :-

▪ In our calculations, Quick assets represent only the

available cash balance at the end of each year and as the
ratio shows an increasing trend line, it means that the
company has enough liquid cash to meet the requirements.
PROFIBILITY RATIO :-
1 ] NET PROFIT RATIO :-

▪ In our calculations, the Net profit ratio shows an

increasing trend which implies that by following
proper methods and techniques, we can achieve the
same in reality to make our business survive and
grow.
2 ] GROSS PROFIT RATIO :-

▪ In our calculations, the ratio shows a continuous

increasing trend which means that it is a favourable
condition for the business to carry out its trading
activities smoothly.
ACTIVITY BASED RATIO :-
1 ) DEBTOR’S RATIO :-

▪ In our calculations, the time period is constant at 25

days which is equivalent to 1 month and it
therefore matches with the assumption of our
company which shows a favourable condition.
2 ) NET WORKING CAPITAL TURNOVER RATIO :-

In our calculations, in the coming years the ratio turns out to be

getting reduced. So, it indicates that the company will have to
take extreme care while using its net working capital as it is
necessary for our day-today working operations
3 ) TOTAL ASSET TURN OVER RATIO :-

▪ Here, it is continuing downward trend so it is

unfavourable for the business.
4 ) FIXED ASSETS TURN OVER RARTIO :-

▪ In our calculations, the ratio has a decreasing

trend it means that the company’s ability meet
current obligations is high which is also
proved through earlier ratios.
5 ) SCREDITOR’S RATIO :-

▪ As the ratio is almost near to it, it shows a favourable

condition for the company as it can have good relations with
the creditors.
FINDINGS AND CONCLUSION OF THE PROJECT :-