priya rice mill
TRANSCRIPT
PROJECT PROFILEPROJECT PROFILEOn Rice Mill
For
M/s PRIYA RICE MILLIndustrial Estate, Bettiah, West Champaran
Promoted by: Computed by
Mr. ASHOK KUMAR GUPTA e-SolutaionsPrem Kunj, SikandarpurMuzaffarpur
ACKNOWLEDGEMENT
Completing a task is never a one-man effort. It is often the result of invaluable contribution of a number of individual in direct or indirect manner.
Sincerity and devotion begin here, when after the completion of project work, I look back to see how it could have been possible without them. I thereby, revel, in reciprocation several of my feeling to all those personalities who have helped me along the way.
I convey my deepest sense of guidance to “ Dr. K.V Bachute’’ (Principal, SCOAC) and “ prof. Subhasis pal’’ for the continued interest taken by them and for kind approval of this project report.
I pay my sincere thanks to the faculty member and project guide “ Prof. Subhasis pal for their support.
Last I pay my thanks to ‘GOD Almighty ‘for enabling me to do my work with his abounding grace.
VAIBHAW SAGAR
Date:
Place: Pune.
NAME M/s PRIYA RICE MILL
LOCATION Industrial Area, Bettiah
ITEM TO BE MANUFACTURED RICE MILL & COARSE GRINDING
COST OF THE SCHEME
Particulars Amount
(Rs. In Lakh)
Fixed Cost 19.30
Working Capital 13.11
Total 32.41
MEANS OF FINANCE
Particulars Amount (Rs. In Lakh)
Promoters Contribution 6.65
Subsidy DG Set 0.70
Land 1.90
Term Loan 11.00
Working Capital Loan/Bank 9.50
Deff payment in respect of land 2.66
Total
32.41
PROFITABILITY (1st year capacity utilization 60%)
Particulars Amount (Rs. In Lakh)
Sales Earnings 54.69
Production Cost 52.07
Gross Profit 2.62
Profit before Tax 1.44
Net Profit 1.44
BREAK EVEN POINT 26.99%
DSCR 2.73:1
TABLE OF CONTENTS
SR.NO Title of the practicals
1 Executive summary
2 The Enterprise
Introduction
Constitution
Location & its advantages
Market & Scope
Licenses & Controls
Manufacturing Process
Fixed Assets
Land & Land Development
Building & Civil Constructions
Plant & Machineries
Misc. Fixed Assets
Preoperative Expenses
Item to be manufactured
Installed capacity
Production Programme
Production of End Product
Requirement of Working Capital
Cost of the Scheme
Means of Finance
Profitability Estimates
Requirement of Raw Materials
Requirement of Raw Material & Consumables on efficiency
Utilities
Men Power
Administrative Expenses
Repair & Maintenance
Rent, Rates & Insurance
Deprecation
Yearly Sales Earnings
INTRODUCTION
The unit namely PRIYA RICE MILL is to be located in a piece
of land at Industrial Area, Kumar Bagh, Bettiah.
NAME OF THE UNIT
The name of the unit will remain as PRIYA RICE MILL unless
otherwise changed.
CONSTITUTION OF THE UNIT
The constitution of the unit will be Proprietorship.
ABOUT THE PROMOTERS
1. Name Mr. ASHOK KUMAR GUPTA
Designation PROPRIETOR
Father’s Name Late Raj Bansi Prasad
Resident Vill- Donwar, P.O. Barwan Ojha , P.s.
Sanichari Bettiah, West Champaran
Age 32 Years
PAN AKIPG7898Q
Qualification Intermediate
Experience in Trading of Paddy & Rice
LOCATION & ITS ADVANTAGE
The unit is located at Industrial Area, Kumar bagh, Bettiah
which is connected with Good Road links. It is situated at
distance of 7 km. from Bettiah Railway Station & 1 km from
Kumarbagh Railway Station The unit will enjoy the facilities of
quick transportation; other infrastructural facilities are also
readily available.
MARKET & SCOPE
India is an agricultural country, two-third population depends
on agriculture sector directly or indirectly .Agriculture
continues to be the mainstay of the Indian economy with food
being the crowing need of the mankind, much emphasis has
been on commercializing agricultural production. Hence,
adequate production and even distribution of food has lastly
become a high priority global concern. The potential role that
may play in alleviating the suffering of million people who
remain under ravished never been fully exploited. The world
continues to face the major challenge of increasing food
production in a sustainable manner and improving horticulture
production with post harvest management.
During the present crisis of ever increasing burden of
population, the importance of reduction in post harvest loss of
commodities is of vital importance to the developing country.
Post harvest handling accounts for 20-40% of the losses at
different stage of storage, grinding packing transport and
finally at marketing as a fresh produce or in processed form
Rice is an important crop world wide. Almost ½ of the people
in world eat rice as a staple food. The fear of decrease rice
production has set trembles of fear throughout the world.
Specifically in India the economy has seen upturn, according
to the Financial Times. Rice is such an important asset to
Indian culture; more than 70percent of the people within the
country rely on agriculture for their income. To even make
alight improvement to the devastating poverty and
unemployment levels, the Indian economy must grow a
minimum of eight percent each year, according to an United
Nations.
Due to the liberal government and other developmental
measuring being taken the future of the industry looks very
bright. The production base is given enlarged, medium
methods of cultivation are being adopted, thus improving the
productivity and cutting
per unit cost. To some extent cold chain is being provided ,
which will helping retaining quality , freshness and reduce
post harvest losses. With the new hybrid varieties being
added the production season is also being extended , these
development shall result in the greater availability of quality
raw material to the industry these resulting in better4 capacity
utilization producing a wide range of products and of
international quality . The quality is new the watchword for
success. The multinational new entering the food industry
have an international marketing network and have their brand
loyalty all over the world. This will have India products
reaching al over the world in the form and packing required.
LICENSES & CONTROL
The unit may need following licenses / NOC / permission from
various government departments:-
1. SSI Registration from BIADA.
2. Approval of Factory Building & other construction from
BIADA and Chief Inspector of Factories, Govt. of Bihar,
Patna.
3. Registration of the Firm from Registrar of Firms Govt. of
Bihar, Patna.
4. NOC from Bihar State Pollution Control Board, Patna.
5. License from the office of the Factory Inspector, Govt. of
Bihar.
6. License & verification of weight from the department of
weight & measures Govt. of Bihar.
7. Any other license / statutory permission required for the
time being
MANUFACTURING PROCESS
STORAGE BIN
CLEANER
STORAGE BIN CLEANED
FRESH RICE
BROKEN RICE
Paddy
EL
EV
AT
OR
Foreign Particles
EL
EV
AT
OR
Separator
BRAN
Production
Packing in 50 Kg
Starting for Market
De Husker
HU
SK
STORAGE BIN RICE
RiceSeparator
Marketable Rice
Weighing
Stitching
FIXED ASSETS
Particular Amount
(Rs. In Lakh)
Land & Land Development 4.20
Building & Civil Works 9.50
Plant & Machinery 3.20
Misc. Fixed Assets 1.70
Preoperative Expenses 0.70
Total 19.30
LAND & LAND DEVELOPMENT
Particular Amount
(Rs. In Lakh)
LAND
The land measuring 1 acre in area has
been allotted by BIADA at rural
industrial estate, Bettiah
3.80
LAND DEVELOPMENT -
As the plot is lower than the road earth filling is required. It has been estimated to
0.20
TOTAL 4.00
BUILDING & CIVIL WORKS
A Technically designed building needed for such the detailed drawing and estimate units have been decided of civil works is sited at ANN-1, the extracts of the same are as follows:
PARTICULARS AREA SPECIFICATIONAmount
Rs in lakh
Total
A Processing Shade
50 x 50 x 18 = 2500ft
Acc truss 5.00
B Godwon Open husk shade
50 x 25x 181250ft
On stiphners Acc roofs , no walls
1.00
C Godown 30 x25750ft
Acc truss roof With pucca walls
1.50
D Pathar for grains sun drying brick soling
100x 100 = 10,000sft
Brick soling with joint tipping 0.30
E Office 10x20x10h=200sft
RCC roof pucca const
0.50
F Boundary wallsGate pillars, inside pathwaysGuardroom
LS 1.20
Total 9.50
PLANT & MACHINERY
S.NO DESCRIPTIONQTY RATE AMOUNT ( RS )
1D-Husker DMR-6”-6308 with Aspirator
1 pc 35000.00 35,000.00
2 Rice Polisher With Collar 1pc 27000.00 27000.00
3Paddy separator -6plate -4”*4”
1 pc27000.00 27000.00
4Paddy cleaner attached fan-30”*36”
1 pc25000.00 25000.00
5 Elevator-16” x 8”x 6”bokit 6set 19566.00 117396.00
6 Line shaft-2.5” 20ft 304.35 6087.00
7 Bearing-6215 4pc 350 1400.00
8 Sakit-6215 4pc 80.00 32.00
9 Bulak-6215 4pc 255.00 1020.00
10 Rail-36 2pc 450.00 900.00
11 Rail -30” 2pc 362.50 725.00
12 Patta-3 32fee 362.50 725.00
13Flate pully-6*2.5bor
1 pc250.00 250.00
14v-pully-26*3
1 pc2184 2184
15v-pully-418*2
1 pc950 950.00
16v-pully-9*2
1 pc360 360.00
17 v-pully-8*2 1pc 300.0 300.00
18 Flotation bolt 1 2000.00 2000.00
19 Angle 40ft 50.00 2000.00
20 Misc Machineries , welding, scales L.S 12000.00 12000.00
Sub total 2,78,212.00
Add : Tax Freight , Installation , Errection etc @ 15 % 41,731.00
Total 3,19,943.00
To say 3.20 Lakh
MISC. FIXED ASSETS
Particular Amount
(Rs. In Lakh)
A. D.G Set 30 KVA 1.4 0
B. Electrical Fittings 0.20
C. MISCELLANEOUS TOOLS &
TACKLES
0.05
D. Furniture Fixtures 0.05
Total 1.70
PREOPERATIVE EXPENSES
The main components of the preoperative expenses are as
follows
Particular Amount
(Rs. In Lakh)
1. Legal Fees & Charges 0.08
2. Salary Of Guards During START
UP PERIOD
0.12
3. Interest during implementation
BSEB Security
0.30
4. Security to BSEB 0.20
Total 0.70
ITEMS TO BE MANUFACTURED
The unit envisages processing Paddy and during off season
Coarse Grinding of Maize
INSTALLED CAPACITY
From the set of machineries installed the processing Capacity
of unit will be as follows:
Per Hr 1000KG/Paddy
Per day (single shift) 400 Kg
Per Annum (250day season)1600MT
In off season the unit will Coarse grind Maize as Coarse
Materials to be used by
cattle /Poultry farmers. The pulverization capacity will be as
follows:-
Per HR- 250kg
Per day/Single Shift 2MT
Per Annum 100days) 200 MT
PRODUCTION PROGRAMME
Year of
operation
Level of capacity
utilization
Per Annum Paddy
- 100% 1600MT
I 60% 960MT
II 70% 1120MT
III on word 80% 1280MT
PRODUCTION OF END PRODUCT
The quantity of different materials after Paddy processing will be as follows:-
Year of Operation
Capacity utilization
Fresh rice Broken rice
Bran Husk
- 100% 1008.00 64.00 112.00 400.00
I 60% 640.08 38.04 67.02 140.00
II 70% 705.06 44.8 78.4 280.00
III & onwards
80% 806.40 51.2 89.6 320.00
REQUIREMENT OF WORKING CAPITAL
Amount Rs in lakh
Level of capacity utilization 60% 70% 80%
Particulars
A 1 month average value of raw materials
6.55 7.65 8.74
B 1/8 days cost of goods under process
0.86 1.00 1.1S4
C ¼ month value of Finished stock 1.76 2.05 2.33
D ½ months value of bill receivable 3.59 4.18 4.76
E 1 month working expenses 0.35 0.38 0.41
Total 13.11 15.26 17.38
Bank borrowing (75% of ABC&D) 9.57 11.16 12.73
to say 9.50 11.00 12.50
Margin money 3.61 4.26 4.88
COST OF THE SCHEME
Particulars Amount Rs. In Lakh
A Fixed Asset
(i) Land & land development
4.20
(ii) Building & civil work 9.50
(iii) Plant & machinery 3.20
(iv) Misc fixed assets 1.70
(v) Preoperative 0.70
Sub Total 19.30
B Working capital(on 50% capacity
utilization)
13.11
Total32.41
MEANS OF FINANCE
Particulars Amount Rs in lakh
Promoter’s contribution 6.65
Subsidy D.G set 0.70
Land 1.90
Term Loan 11.00
Working Capital Loan 9.50
Def payment in respect of Land
2.66
Total 32.41
PRODUCTION & PROFITABILITY ESTIMATES
The estimated profitability statement giving details of the cost of
production, sales & other expenses for first 6 years of operation of
the unit. The projections show sufficient surplus from operations to
take care of repayment obligations will in time. The following
assumptions have been taken into consideration while computing
the expenses:-
(a)Cost price of the Paddy is taken on an average.
(b)Selling price of the finished product is taken on an average for
the whole year.
(c)Rent rates & Insurance has been considered @ 5% on the
project outlay.
(d)Rate of interest on Term Loan & working Capital Loan has
been taken as per present norms.
(e)Deprecation has been considered on W.D.V. method.
(f) Administrative expenses have been considered @ 10% on the
Amount of Salary/wages & contract labour charges.
(g)VAT, if any is to be charged from customers and to be
deposited to the department so it has not been considered
while computing.
(h)Income Tax has been calculated as per provisions applied for
the financial year 2008-09.
REQUIREMENT OF RAW MATERIALS
Per Annum on 100% Capacity Utilization
Particulars Qty Rate AmountRs in lakh
Paddy 1600MT 8000/-MT 128.00
Total 128.00
REQUIREMENT OF PACKING MATERIALS
Per Annum on 100% capacity utilization
Particulars Qty Rate AmountRs in lakh
Bags(50kg)
21500 14/- 3.01
Misc L.S 2.5% above
0.08
To say Rs 3.09 lakh
Note- Broken Rice /coarse Maize are to packed in old bags in which it comes to
REQUIREMENT OF RAW MATERIALS & PACKING MATERIALS ON DIFFERENT LEVEL OF CAPACITY
Amount Rs in lakh
Year ofOperation
Level of capacity
Utilization
Raw Materials
Packing Materials
Total
- 100% 128.00 3.09 131.09
I 60% 76.80 1.84 78.64
II 70% 89.60 2.16 91.76
III & onward
80% 102.40 2.47 104.87
UTILITIES
The unit will require following utilities:-
(i) Water
(ii) Power
(iii) Diesel
WATER
Water will be required for the drinking and cleaning purpose from own borwell. There will be no requirement of water in processing.
POWER
The electricity will be required only for the lighting purpose. 2 KB. commercial load will solve the purpose which will cost approx 10000.
Consumption and cost over power will be as follows:
Connected Load : 25 H.P
Consumption : 25 X 6 X 746 X 300
(As Power Is Assumed To
6hrs Be Available On Average) : 33,570 Units/Annum
Cost @ 5/25 Per Unit : 33,570 X 5.25
: 1, 76,242/50
Add Meter Rent : 600/-
Add Cost towards Lighting : 10800/-
: -------------------
Cost per Annum : 1, 87,642/-
To Say : Rs 1.88 Lakh
----------------
Diesel
Diesel will be required to run D.G.Set during loadscheding by BSEB. It is for 2Hrs/shift. The cost towards running of D.G Set will be as follows:-
Consumption
Per Hr = 2.00lit
Per Annum = 2 x 300 x 2
= 1200 Lit
Cost @35/- Per Liter
Inclusive Of Lubricants = 35 x 1200
= Rs 42,000/-
Hence Expenditure over UTILITIES
Year ofoperation
Level ofCapacity utilization
Electricity(Rs in lakh)
Fuel(Rs in lakh)
Total
I 60% 1.13 0.25 1.38
II 70% 1.32 0.29 1.61
III onward
80% 1.50 0.34 1.84
MAN POWER REQUIREMENT
There will be two types of manpower. One of personal nature and other will be of contract nature to be paid piecemeal basis. The details of manpower are as follows:
S.No Situation No Salary/wagesPer month
Amount
Production section
1 Skilled operator
1 3000/- 3000.00
2 Semi skilled 2 2500/- 5000.00
Administration/Sale
1 Manager 1 3000/- 3000.00
2 GUARD 2 2000/- 4000.00
SUB TOTAL 15000.00
Add : perks 20% 3000.00
Total 18000.00
N.B : Provision of yearly increment @2%Contract Labor Wages
Paddy processing qty 800MT@50/-MT Rs. 80,000.00on 60% Capacity Utilization Rs. 48,000.00on 70% Capacity Utilization Rs. 56,000.00on 80% Capacity Utilization Rs. 64,000.00
ADMINISTRATIVE EXPENDITURE
Administrative expenditure has been considered @ 10% of the total salary/wages & contact labour charges paid during the year towards cell phone charges., stationery, conveyance, traveling and misc. expenditure of administrative nature required to be done for smooth running of the unit the figure comes as under :-
Year ofOperation
Salary/wages Contract wages
Total AdministrativeExpenditureRs in lakh
I 2.16 0.48 2.64 0.26
II 2.20 0.56 2.76 0.28
III 2.24 0.64 2.88 0.29
IV 2.28 0.64 2.92 0.29
V 2.33 0.64 2.97 0.30
VI 2.38 0.64 3.02 0.30
REPAIR & MAINTENANCE
The yearly expenditure towards repair and maintenance has been considered on the cost of Building & Civil works, Plant & machineries & its installation and misc fixed assets i.e. 9.25 lakh. The figures are as under
Year ofOperation
Rate of repair& Maintenance
AmountRs in lakh
I 2% 0.30
II 2.5% 0.36
III 3% 0.43
IV 4% 0.57
V & onward 5% 0.72
RENT, RATES & INSURANCE
Yearly rent, rates and insurance is to be considered @ 0.5% of the project outlay i.e. Rs 21.08 which comes to Rs 0.11 lakh
DEPRECTION
Year ofOperation
Assets Amount Rs in Lakh
Rate ofDeprecation
Building &Civil work
Plant M/c &Misc Fixed
Asset
Total
10% 15%
I Value 9.50 4.90 14.40
Deprecation .95 0.74 1.18
II Value 8.55 4.16 12.71
Deprecation 0.85 0.62 1.47
III Value 7.69 3.54 11.23
Deprecation 0.76 0.53 1.29
IV Value 6.92 3.01 9.93
Deprecation 0.69 0.45 1.14
V Value 6.2 2.56 8.76
Deprecation .62 0.38 1.00
VI Value 5.60 2.18 7.78Deprecation
0.50 0.33 0.83
VII Value 5.10 1.85 6.95
YEARLY SALES EARNING(On 100% capacity utilization)
Item Qty Rate Amount Rs in lakh
Rice 1008 MT 1450/- MT146.16
Broken rice 64.00 MT 8000/- MT5.12
Brae 112.00MT 4000/- MT4.48
Husk 400MT 500/- MT2.00
Total157.76
Hence sales earning on different level of capacities utilization
Amount Rs in lakh
Year ofOperation
Level ofCapacity
SalesEarning
TradeDiscount
Net salesEarning
I 60% 94.66 1.89 92.77
II 70% 110.43 2.21 108.22
III & onward 80% 126.21 2.52 123.69
SELLING EXPENSE
Selling Expenses have been considered @2% on the Net Sales
earning for middle man for
smooth Sales & realization of sales proceeds the figure come as
under
Year of
Operation
Level of
Capacity
Net Sales Selling Exp
I 60% 92.77 1.86
II 70% 108.22 2.16
III & onward 80% 123.69 2.47
