PROJECT ON CERTIFIED SEED PRODUCTION OF GROUNDNUT

PROJECT LIFE CYCLE = 15 YEARS TARGETED SEED PRODUCTION PER ANNUM =15,000 QUINTALS

NON RECURRING COST (Rs in lakhs)S. No.

Particulars Cost

1. Plant machinery and equipment

15.20

2. Building and civil works 25.003. Land 3.48

Total 43.68

RECURRING COST (per quintal)Particulars Cost (Rs) Total (Rs)

Raw seed ( certified seed ) 4,000 6,00,00,000Seed treatment 20 3,00,000Packing 50 7,50,000Loading and unloading 10

1,50,000Seed certification 40 6,00,000Miscellaneous @1.25% 50 7,50,000Labour charges 25 3,75,000Technical staff 100 15,00,000Transportation 40 6,00,000

Commission to distributor 7511,25,000

Electricity 20 3,00,000Provision for rejection @5% 200 30

,00,000Provision for shelling loss @1.25% 50 7,50,000Provision for moisture @2.5% 100 15,00,000TOTAL (Rs) 4,780 7,17,00,000

TABLE NO. 1. COST AND CAPACITY OF MACHINERY INVOLVED

S. No.

Name of machines Capacity

Qty. Rate/ Unit, Rs in lakhs

Amount, Rs in lakhs

1. Pre-cleaner 2 TPH 1 No. 2.00 1.503. Seed Cleaner 2 TPH 1 No. 2.10 1.604. Indent Cylinder 2 TPH 1 No. 1.30 1.305. Specific gravity separator 2 TPH 1 No. 0.50 1.506. Elevator up to 5 m height 2 TPH 4 No. 0.40 1.608. Vacuum cleaner 1 No. 0.10 0.109. Electronic moisture meter

(Wet type) - 1 No. 0.20 0.20

10. Bag closer heavy duty Nil 2 No. 0.04 0.0811. Weighing machine 100 kg

300 kg1 No.1 No.

0.400.50

0.400.50

12. Diesel generating set 45 KVA 1 No. 2.50 2.50 Total (X) 11.28

13. Spares parts for 3 Years @ 5% of amount (X)

0.564

14. Installation, testing, commissioning of Machines @ 10% of amount (X)

1.128

15. Laboratory equipments like germinator, hot air oven, weighing balance, divider etc

1.75

16. Sum of S. No. 1 to 15 14.72217. Contingencies @ 3% 0.44

Grand Total = 15.162 Rs15.20

TABLE NO. 2DESCRIPTION OF INFRASTRUCTURE COST AND AREA

S. Description Area Rate/

Unit(in Rs.)

Amount(Rs. in lakhs)

1.Threshing/drying platform with 0.90 m plinth height

100 m2 750/m2 0.75

2.(a)

Plant building for temporary store of raw seeds, processing machines as per layout plant

200 m2 3500/m2 7.00

(b) Room for DG set 45 KVA 25 m2 3000/m2 0.75(c) Room space for Plant

Incharge, certification packing material, chemicals, workshop for storing of spare parts, tools, processing screens and toilet etc.

50 m2 3500/m2 1.75

3. Seed storage, 250-300 tonnes 200 m2 4000/m2 8.004. Boundary wall (200 m) 900/m 1.805. Cement concrete Road (125 m

x 4 m), 25 cm thick 500 m2 500/m2 2.50

6. Site development like drainage, security etc @ 10% total expenditure given above

2.20

SUB TOTAL 1075 m2 24.25Contingency @ 3% 0.73

GRAND TOTAL = 24.98 25 lakhs (Rs twenty five lakhs)

SOURCES OF FUND FOR PROJECT

Sources %of fund provided

Amount of fund provided (in Rs)

Bank loan 70 36517600

Owner’s equity 30 15650400

Total 100 52168000

GROSS REVENUE PER ANNUM (IN Rs)

Season Quantity (quintal )

Price/quintal Total receipts

Kharif 10,000 5000 5,00,00,000

Rabi 5,000 5000 2,50,00,000

Total 7,50,00,000

CASH FLOW STATEMENT (IN Rs)

Year cash outflow per annum

Cash inflow per annum

Discounted cash outflow @12%

Discounted cash inflow @12%

Discounted Net cash flow

Un discounted net cash flow

04368000 0 4368000 0 -4368000 -4368000

171700000 75000000 64028100 66975000 2946900 3300000

271700000 75000000 57144900 59775000 2630100 3300000

371700000 75000000 51050400 53400000 2349600 3300000

471700000 75000000 45601200 47700000 2098800 3300000

571700000 75000000 40653900 42525000 1871100 3300000

671700000 75000000 36351900 38025000 1673100 3300000

771700000 75000000 32408400 33900000 1491600 3300000

871700000 75000000 28966800 30300000 1333200 3300000

971700000 75000000 25883700 27075000 1191300 3300000

1071700000 75000000 23087400 24150000 1062600 3300000

1171700000 75000000 20577900 21525000 947100 3300000

1271700000 75000000 18426900 19275000 848100 3300000

1371700000 75000000 16419300 17175000 755700 3300000

1471700000 75000000 14698500 15375000 676500 3300000

1571700000 75000000 13121100 13725000 603900 3300000

TOTAL 1079868000 1125000000 492788400 510900000

18111600 (NPV)

BREAK EVEN POINT ANALYSIS

BREAK EVEN POINT= FIXED CAPITAL EXPENDITURE

SELLING PRICE –VARIABLE COST PERQUINTAL

291200

= 5000-4780 = 1323.64 quintals

BEP IN MONETARY TERMS = BEP IN UNITS * PRICE PER UNIT =1323.64 *5,000 = Rs 6618200

MARGIN OF SAFETY =TOTAL OUTPUT – OUTPUT AT BEP =15,000- 1323.64 = 13676.36 quintals

MARGIN OF SAFETY = GROSS REVENUE – GROSS REVENUE AT BEP =7, 50, 00,000- 66, 18,200

= Rs 7, 49, 99,780

PROFITABILITY RATIO =NPV

TOTAL CAPITAL REQUIRED

18111600 = 4343000

=4.15

BENEFIT COST RATIO= PRESENT VALUE OF THE BENEFITS

PRESENT VALUE OF THE COST 22479600 = 4368000

=5.15

NET BENEFIT COST RATIO (NBCR) =BCR-1 =5.15-1 =4.15

IRR (INTERNAL RATE OF RETURN)

= LDR + {LDR –HDR} *[NPV AT LDR / NPV AT LDR – NPV AT HDR]=12+ (28)* [18111600 /15127200]

=12+28*[1.197287]

=45.52

Here in the above formula, LDR = Lower discount rate HDR =higher discount rate

PAY BACK PERIOD = 1YEARS AND 3 MONTH