Project Proposal Model

1. PROJECT PROPOSAL
ON

2. INTRODUCTION
 Marine fish production in India during 2015 was
recorded at 3.6 million tonnes & among the 3
major producing states Kerala holds the 3rd
position.
 Seafood exports from India touched an all-time-
high of Rs 33,441.61 crore, recording a growth
of 11 per cent over the previous year.
 The location of the proposed project and the
increasing value of seafood provides a great
scope to the project.

3. SCOPE OF THE PROJECT
• Product :-
The project proposes to process squid(raw
material)into block frozen product of different grades.
• Market :-
It is proposed to market the product outside the
country.
• Promoter:-
Gopika Viswanath
kizhakeettil (H)
panangad
Ernakulam
kochi-682506

4. • Raw materials:-
The raw material is squid( Loligo duvacelli )
which will be purchased from various landing
centers such as Thoppumpady, Munambam,
Vypin, Neendakara etc.
• Technical knowhow:-
Employees having sufficient technical know-how is
posted in this project.

5. MANUFACTURING PROCESS
shipment
Cold store
Packing and labelling
Glazing,glaze hardening
Freezing
Setting in trays
weighing
grading
washing
Pre-processing (dressing,treatment,etc)
Raw material receiving

6. • Environmental impact :-
The waste water generated from the plant
will be treated in an effluent treatment
plant and after treatment the water is
discharged into the sea. Hence it is clear
that the proposed project will not cause
any harm to the environment.

7. PROJECT PARTICULARS
• Location : Aroor, Alappuzha district.
• Capacity 40tonnes /month
• Building (20 cent)
facilities required are:
1. Pre-processing section
2. Processing section
3. Laboratory
4. Office
5. Restroom & toilets
6. Cold storage
7. Chill room
8. Ice producing section
9. Machine room
10. Overhead tank
11. Effluent treatment system

8. • Plant & Machinery :: Rs 35,00,000/-
Blast freezer
Flake ice machine
Agitator(squid washer)
Weighing machines
Incubator
Autoclave
Processing tables
Vacuum sealer
• Implementation & Registration :
Proposed project will be registered by MPEDA & it
will start functioning within a period of 6 months.

9. • Project cost :
The total cost of the project is estimated to be
Rs3,70,20,000/-
• Labour requirement
Description of labour number Total salary (Rs.)
Direct labour
1)Pre-processing 10 45,000
2)Processing 15 77,000
3)Supervisors 3 24,000
28 1,46,000
Indirect labour
Office staff and other workers 28 2,33,500

10. FIXED ASSETS
SL NO. PARTICULARS AMOUNT (Rs)
1 Land 25,00,000
2 Building 65,00,000
3 Plant & machinery 35,00,000
4 Fixtures & fittings 13,00,000
5 Furniture & Equipment’s 10,00,000
6 Vehicles 30,00,000
7 electrification 10,00,000
8 Preliminary and Pre-operative
expenses 15,00,000
2,03,00,000
Add contingency @10 % 20,30,000
Total fixed assets 2,23,30,000

11. WORKING CAPITAL REQUIREMENTS
( 1 month)
SLNO. PARTICULARS AMOUNT (Rs)
1
Raw material(30 days) 70,00,000
2 Finished goods (15 days)
1. Raw material 35,00,000
2. Labour 73,000
3. Packing material 37,000
4. Overheads 10,000
5. Electricity 70,000
3. Sundry Debtors 20,00,000
4. Cash-In-hand 20,00,000
Total Working Capital
1,46,90,000

12. SOURCE OF FINANCING
• Fixed assets
Term loan : 2,00,00,000
own capital : 23,30,000
Total fixed capital: 2,23,30,000
• Working capital
Term loan : 1,45,00,000
own capital : 1,90,000
Total working capital : 1,46,90,000
TOTAL COST OF THE PROJECT : 3,70,20,000/-

13. SCHEDULE OF WORKING CAPITAL REQUIREMENTS
( 1 month)
CAPACITIES WORKING CAPITAL REQUIREMENT( RS)
60% 94,34,000
80% 1,18,62,000
90% 1,36,29,000
100 % 1,46,90,000

14. SCHEDULE OF DEPRECIATION FOR
7 YEARS
YEAR DEPRECIATION (Rs)
1 19,30,000
2 16,77,000
3 14,61,300
4 12,76,770
5 11,18,373
6 9,81,961
7 8,64,107

15. Schedule of repayment of Term loan
particular
s
1st year 2nd year 3rd year 4th year 5th year 6th year 7th year
Term loan 20,00,000 20,00,000 19,00,000 17,00,000 15,00,000 13,00,000 11,00,000
Working
capital
loan
14,50,000 14,50,000 13,50,000 12,00,000 10,50,000 8,50,000 6,50,000
total 34,50,000 54,50,000 67,50,000 64,00,000 65,50,000 61,50,000 57,50,000

16. PROJECTED PROFITABILITY STATEMENT
FOR 7 YEARS

17. PARTICULARS 1st YEAR 2nd YEAR 3rd YEAR 4th YEAR
Capacity utilization 60% 80% 90% 90%
Net Sales @ Rs.280 / kg(less
customs and excise 0.8%) 7,99,94,880 10,66,59,840 11,99,92,320 11,99,92,320
Less cost of goods sold 5,36,16,000 7,10,88,000 7,98,96,000 7,98,96,000
Gross profit (sales-CGS) 2,63,78,880 3,55,71,840 4,00,96,320 4,00,96,320
Less Office & administrative
expenses 28,08,000 36,00,000 42,00,000 45,00,000
Less Selling & distribution
expenses 6,00,000 8,00,000 9,00,000 9,50,000
Interest on Loan(10 %) 34,50,000 54,50,000 6750000 6400000
Less depreciation 19,30,000 16,77,000 14,61,300 12,76,770
Preliminary expense written
off 1,50,000 1,50,000 1,50,000 1,50,000
Net profit 1,74,40,880 2,38,94,840 2,66,35,020 2,68,19,550
Less Income tax 30% 52,32,264 71,68,452 79,90,506 80,45,865
N.P.A.T : 1,22,08,616 1,67,26,388 1,86,44,514 1,87,73,685

18. PROJECTED PROFITABILITY STATEMENT FOR LAST 3 YEARS
PARTICULARS 5th YEAR 6th YEAR 7th YEAR
Capacity utilization 100% 100% 100%
Net Sales @ Rs.280 / kg(less
customs and excise 0.8%) 13,44,00,000 133324800 133324800
Less cost of goods sold 8,85,60,000 88560000 88560000
Gross profit (sales-CGS) 4,47,64,800 44764800 44764800
Less Office & administrative
expenses 50,00,000 5200000 5500000
Less Selling & distribution
expenses 10,00,000 1050000 1050000
Interest on Loan (10%) 6550000 6150000 5750000
Less depreciation 1118373 981961 864107
Preliminary expense written off 150000 150000 150000
Net profit 30946427 31232839 31450693
Less Income tax 30% 9283929 9369852 9435208
NPAT : 21662498 21862987 220154485

19. PROJECTED CASHFLOW STATEMENT FOR 7 YEARS
PARTICULAR
S
1st
YEAR
2nd
YEAR
3rd
YEAR
4th
YEAR
5th
YEAR
6th
YEAR
7th
YEAR
Cash inflow (A)
Opening cash
balance - 31008616 47562004 64317818 81018273 99949144 118944092
Own capital 25200000 - - - - - -
Term loan 20000000 - - - - - -
Working capital
loan 14500000 - - - - - -
N.P.A.T 12208616 16726388 18644514 18773685 21662498 21862987 22015485
Depreciation 1930000 1677000 1461300 1276770 1118373 981961 864107
Preliminary exp 150000 150000 150000 150000 150000 150000 150000
Interest on loan 3450000 5450000 6750000 6400000 6550000 6150000 5750000
Income tax 5232264 7168452 7990506 8045865 9283929 9369852 9435189
Total cash
inflow (A) 59990880 62180456 82558324 971344138 119783073 138463944157158873

20. Cont…
PARTICULARS
1st
YEAR
2nd
YEAR
3rd
YEAR
4th
YEAR
5th YEAR 6th YEAR 7th YEAR
Cash outflow (B)
Purchase of
fixed assets 20300000 - - - - - -
Income tax 5232264 7168452 7990506 8045865 9283929 9369852 9435189
Interest on loans 3450000 5450000 6750000 6400000 6550000 6150000 5750000
Repayment of
term loan - 1000000 2000000 2000000 2000000 2000000 2000000
Repayment of
working capital - 1000000 1500000 1500000 2000000 2000000 2000000
Total cash
outflow (B) 28982264 14618452 18240506 17945865 19833929 19519852 19185189
closing cash
balance
(A-B) 31008616 47562004 64317818 81018273 99949144 118944092137973684

21. PROJECTED BALANCE SHEET FOR THE 1st YEAR
Liabilities Amount
( Rs)
Assets Amount
( Rs)
Own capital- 25,20,000
Add net profit- 12,208,616 14,728,616
Cash in hand and bank 3,10,08,616
Land 25,00,000
Term Loan 2,00,00,000 Building- 65,00,000
Less dep. - 6,50,000 58,50,000
Working capital loan
1,45,00,000
Plant& mach. - 35,00,000
Less dep. - 3,50,000 31,50,000
4,92,28,616
Furniture& eq.- 10,00,000
Less dep. - 1,00,000
Vehicles- 30,00,000
Less dep. - 6,00,000
Fixture &fit - 13,00,000
Less dep. - 1,30,000
Electrification
Preliminary exp. written off
9,00,000
24,00,000
1170000
900000
13,50,000
4,92,28,616

22. PROJECTED BALANCE SHEET FOR THE 7th YEAR
Liabilities Amount
( Rs)
Assets Amount
( Rs)
Own capital- 25,20,000 Cash in hand and bank 13,79,73,684
Land 25,00,000
Term Loan - 11000000
Less repayment - 2000000 90,00,000
Building- 34,54,995
Less dep. - 3,45,500 31,08,929
Working capital loan – 650000
Less repayment -2000000
P & L A/C - 10,98,78,688
Add net profit - 2,20,15,485
45,00,000
Plant& mach. - 18,60,043
Less dep. - 1,86,005 16,74,038
13,18,94,173
14,79,14,173
Furniture& eq.- 5,31,441
Less dep. - 53,145
Vehicles- 78,64,322
Less dep. - 1,57,287
Fixture &fit - 6,90,873
Less dep. - 69,088
Electrification
Preliminary exp. written off
4,78,296
6,29,145
6,21,785
4,78,296
4,50,000
14,79,14,173

23. Schedule of variable cost
Year 1 2 3 4 5 6 7
Total
variable
cost
53616000 71088000 40096320 40096320 44764800 44764800 44764800

24. Schedule of fixed expenses
year 1 2 3 4 5 6 7
Total
fixed
expenses
8788000 11527000 13311300 13126770 13668373 13381961 13164107

25. BREAK EVEN POINT ANALYSIS
Year CAPACITIES P/V RATIO
(%)
B.E.P (Rs)
Capacities at
which B.E.P is
attained (%)
1 60% 32.98 2,66,46,452 19.98
2 80% 33.34 3,45,74,085 25.93
3 90% 33.42 3,98,30,341 29.87
4 90% 33.42 3,92,78,187 29.46
5 100% 33.58 4,07,03,910 30.52
6 100% 33.58 3,98,50,986 29.89
7 100% 33.58 3,92,02,225 29.40

26. FINANCIAL FEASIBILITY OF THE
PROJECT
• PAY BACK PERIOD
2 years & 3 months
• RETURN ON INVESTMENT
50.89%
• IRR
43.99%

27. CONCLUSION
– The Pay back period of the project is 2 years and 3
months.
– The IRR of the project is 43.99%
– Short payback period and greater IRR makes the project
to earn greater profit.
– The product has high demand & there is no difficulty in
marketing the product.
– The product does not cause any environmental damage.