extension subject project

3. Moisture 5.9
Total Minerals 2.4
Total Fiber 1.3
Energy 785
Protein 24
Total Fat 64
Saturated 12.9
Unsaturated
(Oleic)
36.8
Unsaturated
(Linoleic)
10.2
Carbohydrate 41

4. Ca 53
P 52.2
fe 5.3
Thiamine 0.63
Riboflavin 0.19
Niacin 2.5
Beta-carotene 60
Retinol Equivalent 33 IU; 10 mcg
Vitamin K 650

5. The domestic consumption of cashew or
the wonder nut, mainly used in many
Indian sweets, pastries and gravies, would
also grow in the range of 8-10% in the
current fiscal, according to reports.
The various cashew kernels include
cashew kernels (raw, salted or roasted),
Cashew Nut Shell Liquid etc.

7. •RAW MATERIAL: SOURCE ORISSA
AND SRIKAKULAM DIST. OF A.P

10. MANUFACTURING PROCESS:

11. CAPACITY OF THE PLANT: 110 Kg/day
QUALITY CONTROL: AS PER FPO REQUIREMENTS
TECHNOLOGY SELECTED: DRUM ROASTING AND STEAM
ROASTING.

12. MARKET POTENTIAL

13. •There exists good market in India for Cashew
nut and tremendous export potential.
•The markets for processed cashew nuts are
growing
.Cashew kernel export is also expected to grow in
value terms at Rs 2,500 crore against Rs 2,288.90
crore in 2007-08, according to the estimates by the
Cashew Promotion Council of India. In terms of
quantity, exports are likely to go up by about 5% in
the coming years.
• The export marketing is highly competitive.

14. DESCRIPTION OF CASHEW FRUIT

16. CAPITAL COSTS AND SOURCE OF FINANCE
• As our enterprise is food processing it comes under
priority sector. So we can get a subsidy of 40lakhs.
• Loan from bank-20lakhs
FIXEDCAPITAL AMOUNTIN Rs
Land 3,00,000
Building 10,00,000
Fixed assets 22,30,000
TOTAL 35,30,000

17. Machinery and equipment
S.NO MACHINE COST
1 Drum roasting machinery 10,00,000
2 Steam roasting machinery 18,00,000
3 Packing machine(2) 12,00,000
4 Other equipment& tools 5,80,000
TOTAL 45,80,000
TOTAL FIXED COST 35,30,000+45,80,000
=81,10,000

18. OTHER EXPENDITURES
S.No INVESTED ON AMOUNT IN Rs
1 Computer 30,000
2 Furniture & vehicles 10,00,000
3 generator 10,00,000
4 Installation costs 2,00,000
T0TAL 22,30,000

19. WORKING CAPITAL
DETAILS
S.No DETAILS AMOUNT IN Rs
1 Raw material 27,00,000
2 Utilities 98,000
3 Postage&Stationery expenses 27,000
4 Consumeble stores 20,000
5 Other expenses 1,75,000
TOTAL 30,00,000

20. OTHER OPERATING EXPENSES
S.No DETAILS AMOUNT IN Rs
1 Lorry rent 1,00,000
2 Labour wages 17,64,000
3 electricity 5,40,000
4 water 39,000
5 advertising 50,000
6 Office expenses 50,000
7 interest 2,40,000
8 insurance 1,20,000
9 Maintenance & repairs 25,000
TOTAL 29,28,000
Total working capital=30,00,000+29,28,000
=59,28,000

21. SALES
As we are producing 40,000kgs/year.
Cost of produce 500Rs/kg.
Therefore total sales:
40,000*500=2,00,00,000

22. BALANCE
SHEET

23. S
.
N
o
ASSETS AMOUNT(Rs) S.No LIABILITIES AMOUNT(
Rs)
1 CURRENT ASSETS 21,00,000 1 CURRENT LIABILITIES
2 LONG TERM ASSETS Land tax@1% 3,000
land 3,00,000 Machine tax@6% 2,74,800
building 10,00,000 Interest
payable@12%
2,40,000
depreciation@5% 9,50,000 2 LONG TERM
LIABILITIES
20,00,000
machinery 45,80,000 TOTAL LIABILITIES 25,17,800
depreciation@5% 43,51,000
Other assets 22,30,000
depreciation@5% 21,18,500 NET WORTH 73,01,700
TOTAL ASSETS 98,19,500 LIABILITIES+
NETWORTH
98,19,500

24. Profit AND LoSS
StAtEMENt

25. I SALES 2,00,00,000
II COSTS OF GOODS SOLD 30,00,000
III GROSS MARGIN 1,70,90,000
IV OPERATING EXPENSES
Salaries and wages 17,64,000
Lorry lease amount 1,00,000
electricity 5,40,000
water 39,000
advertising 50,000
Office expenses 50,000
insurance 1,20,000
Maintinance and repairs 25,000
TOTAL 26,88,000
V NET OPERATING PROFIT 1,43,12,000
VI INTEREST EXPENSES 2,40,000
VII NET PROFIT BEFORE TAXES 1,40,72,000
VIII PROFIT TAXES@30% 42,21,600
IX NET PROFIT AFTER TAXES 98,50,400

26. PRINCIPLE INTEREST INSTALLMENT BALANCE
3,00,000 2,40,000 5,40,000 17,00,000
3,00,000 2,04,000 5,04,000 14,00,000
4,00,000 1,68,000 5,68,000 10,00,000
10,00,000 12,000 10,12,000 -

27. rAtio ANALYSiS
• =2,00,00,000-59,28,000
=1,40,72,000
BREAK EVEN POINT=(Total fixed cost/Sales-V.c)*100
=81,10,000/1,40,72,000*1OO
=57%
PROFITABILITY RATIO=(Net profit/sales)*100
=1,40,72,000/2,00,00,000*100
=70%
NET RETURNS=Total sales- Total working capital

28. • RETURNS ON INVESTMENT =Net
profit/Capital employed
1,40,72,000/1,40,38,000
=1.002
• DEBT EQUITY RATIO=Total debts/Equity
=25,17,800/73,01,700= 0.34

29. CASH fLoW StAtEMENt
S
.
N
o
ITEM 1st
yr 2nd
yr 3rd
yr 4th
yr
1 Cash in flow 2,00,00,000 2,50,00,000 2,87,50,000 3,25,00,000
2 Cash out flow 56,88,000 66,88,000 76,88,000 86,88,000
3 Net cash flow 1,43,12,000 1,83,12,000 2,10,62,000 2,38,12,000
4 Profit Tax @ 30% 42,21,600 54,21,600 62,46,600 70,71,600
5 Interest @12% 2,40,000 2,04,000 1,68,000 12,000
6 Net profit after taxes 98,50,400 1,26,86,400 1,46,47,400 1,67,28,400
7 Break even point 57% 42% 35% 30%

30. SSI provisional registration : 1-2 months
 Sanction
SSI provisional registration : 1-2 months
 Sanction
 Installation of machinery and power : 6-8 monthsS Installation of machinery and power : 6-8 monthsS
 Trial run and production : 01 month Trial run and production : 01 month

31. ECONOMIC & SOCIAL VARIABLES
LOCAL RESOURCE UTILISATION:
water, power, labour
IMPORT:
• no import substitution
EXPORT:
• planning to export

32. Drum roasting machinery PACKING
MACHINE
OTHER
MACHINES
GODOWN FOR RAW
MATERIAL
LUNCH
ROOM
STORAGE ROOM
OFFICE ROOM
TOI
LETS
Steam roasting
machinery

33. Annexures
•Cost of production & profitability after taxes
=59,28,000+98,50,400=1,57,78,400.
•Labour&Staff requirements
Superviser-1
Skilled workers-20
Un skilled-10
Wages&Salaries=17,64,000

34. Break even point=57%
Total working capital=59,28,000

35. SWOT ANALYSIS
STRENGTH’S :
Availability of machinery.
Good manufacturing practices.
Quality assurance & control.
Efficient management.
Low cost of manufacturing.

36. WEAKNESS :
Low availability of raw material.
Shortage of trained labour.
OPPORTUNITIES :
Growing population.
Favourable govt. policies.
Changes in eating habits.

37. THREAT’S :
Imbalanced prices of raw material.
Emerging competition.
Customers acceptability.