AN ANALYTICAL STUDY OF

ENTREPRENEURSHIP

DEVELOPMENT IN SMALL INDUSTRIES

PROJECT REPORTON

GRACE OILS

Submitted To Mahatma Gandhi University

Kottayam, In Partial Fulfillment of the Requirements

For the Award of Degree of Bachelor of Commerce

Submitted by:

ELIZABETH B. MATHEW

Reg. No. 53653

Under the Guidance of

Ms. Ambily. V., M.Com., B.Ed.

DEPARTMENT OF COMMERCE AND MANAGEMENT

SANTHIGIRI COLLEGE OF COMPUTER

SCIENCES(Affiliated to M.G. University, Kottayam)

2011

SANTHIGIRI COLLEGE OF COMPUTER

SCIENCES

VAZHITHALA, THODUPUZHA

IDUKKI (DIST)

CERTIFICATE

This is to certify the project work on setting up of a “GRACE OILS

ENTREPRISE” submitted to Mahatma Gandhi University in partial fulfillment of

the requirements for the award of the Degree of bachelor of Commerce (B.Com) with

Computer Application is a record of the original work done by ELIZABETH B.

MATHEW (Reg. No. 53653) during the period of her study in the Department of

commerce, Santhigiri College, Vazhithala, Thodupuzha.

Principal Head of the Department Guide

DECLARATION

I ELIZABETH B MATHEW, a bonafide student of Department of

Commerce, Santhigiri College of Computer Sciences, Vazhithala P.O.,

Thodupuzha-685 583, is hereby declared that, this Project Report is only for my

educational purpose under the guidance of Ms. Ambily V. as the completion of my

degree, bachelor of Commerce. It will not submit to any other University or

Institution for the award of any other degree or diploma.

ELIZABETH B. MATHEW

Place:

Date:

ACKNOWLEDGEMENT

We give all honor and praise to the LORD who gave us wisdom and enabled

us to complete this project successfully.

We express our heartfelt thanks to Rev. Fr. Paul Parakattel CMI Principal,

Santhigiri College of Computer Sciences for granting us permission to the project.

We express our sincere thanks to our Head of the Department

Mr. Jomon Chacko and Project Co-ordinators Prof. K.A. Cyriac and

Ms. Ambily. V. for their valuable advice and guidance.

We also express our gratitude and thanks to all our teachers and other faculty

members of the Department of Commerce, Santhigiri College of Computer Sciences,

for their sincere and friendly co-operation in completing this project.

ELIZABETH B. MATHEW

Contents

Chapter Page No

Introduction to the Coconut Oil Industry 1

Strength of Indian Coconut Industry 4

Uses of coconut Oil 6

Project Report on Grace Oils 12

Annexures 25

Conclusion 39

Bibliography 40

COCONUT OIL INDUSTRY

Coconut or the "tree of life," in tropical climates is a way of life for

millions of people all around the globe. Coconut is a versatile product

and has multiple uses. Almost all the parts of a freshly grown coconut,

eatable or otherwise, are used in some or the other manner. India is one

of the leading coconut producers in the world, producing 13 billion nuts

per annum. India accounts for nearly 20% of global coconut output.

Coconut is a popular plantation and is grown almost in all major

states of the country i.e., in Andhra Pradesh, Assam ,Kerala ,Goa,

Karnataka, Orissa, Tamil Nadu, Tripura, West Bengal, Maharashtra,

Andaman and Nicobar Islands, Lakshadweep and Pondicherry. The

Coconut Development Board has chalked out an ambitious plan for re-

plantation of the crop and expansion of the area in non-traditional

producing states. The objective of the programme is to achieve a level of

annual production of 15 billion nuts by 2012.

Coconut processing adds value, and a number of products like

Coconut Oil, Desiccated Coconut, Coir fiber, Pith, Mattresses,

Desiccated Coconut (DC), Coconut Cream, Coconut Milk, Spray Dried

Coconut Milk Powder, Coconut Shell Products, Shell Charcoal, Shell

Powder, Virgin Coconut Oil are obtained. In India, almost the entire

production goes for internal consumption in the following pattern: about

47% for edible purpose, 28% for coconut oil, 11% for tender nut and 6%

for edible copra. Global export of coconut products exceeds $1.2 billion

annually. The growing market for all coconut products is waking up even

in the USA and Europe, countries which have never used coconut in their

cuisine. The major portion of coconut produced in the country is used for

extraction of oil .India has unbeatable quality advantage in coconut oil

sector. Refined coconut oil is also manufactured in the country for

industrial uses.

Refined coconut oil is mainly used in the manufacture of biscuits,

chocolates and other confectionery items, ice cream, pharmaceutical

products and costly paints. Generally, filtered coconut oil is used for

cooking and toiletry purpose

The demand for coconut oil increases 15-20 % during the festival

season.Coconut oil for edible purposes is now being claimed to be the

second best edible oil in the world, after Olive oil. Coconut  Shell

charcoal is most widely used as domestic and industrial fuel.Coconut oil

is an important cooking medium in Southern parts of the country

especially in Kerala State. Besides, the oil has varied industrial

applications. It is used in the manufacture of toilet soaps, laundry soaps,

surface active agents and detergents, hair tonics, cosmetics, etc. It is used

throughout the country as a hair oil as it helps growth of the hair. As a

massage oil it has a cooling effect on the body. Owing to these qualities

coconut oil has a potential market in the country. Since the price of

coconut oil in the international market is very much lower than the

domestic price, the quality and attractiveness of consumer packs are

important factors to compete in the world market. While the demand for

coconut oil for cooking purpose is elastic, its demand as hair oil is

inelastic.

Strength of Indian Coconut Industry

One of the leading producers of coconuts in the world producing

13 billion nuts per annum.

Coconut area distributed in 18 states and three Union Territories

under different agro-climatic conditions

3000 years' tradition in coconut cultivation

Premier coir manufacturing country in the world

Producer of best grade milling copra in the world yielding high

grade coconut oil known for its aroma and flavour.

Large number of farmer's co-operative societies in primary

processing and marketing

Government agencies such as Kerafed, State Trading Corporation,

Kerala State Marketing Federation and Karnataka State Marketing

Federation in manufacturing and marketing of branded coconut oil

in small packs

Hundreds of reputed and established private firms in

manufacturing and marketing of various coconut products

including branded coconut oil in small packs

Wide range of coconut products both edible and non-edible

available for export

Technical know-how and trained manpower for the manufacture of

various coconut based products.

Availability of research support by reputed research organizations

such as CSIR, ICAR and DRDO.

Good number of cultivars / varieties having specific nut

characteristics

Uses Of Coconut Oil

Oil - Unique & Healthy

Coconut oil finds extensive use in food, toiletry and industrial sectors

because of its unique characteristics. The numerous qualities of coconut

oil reported are:

Oil of natural origin

Edible in raw form

Saturated and stable

Pleasing flavor

Light color

Pleasant aroma

Biodegradable

High resistance to oxidative rancidity

Sharp melting behavior

Narrow temperature range of melting

Skin friendly oil

Effective heat transfer agent in frying

Better shelf life for fried product

Contributes to palatability

Ideal for deep frying

Ideal confectionery fat

Provides moisture barrier and imparts high gloss for bakery items

in spray oil use

Carrier and protective agent for fat soluble vitamins

Low viscosity

Superior baby oil

Oldest and most widely used cosmetic raw material

Contains 91 per cent assimilable glycerides

Maximum glycerine content

Easily saponifiable even in cold

Good emollient on skin, skull and hair

Gives softness and suppleness to skin on regular massaging

Spreads easily on the skin when used as massage oil

Excellent base for hair oil

Provides gloss to hair

Germicidal and antimicrobial property

Lowers evaporative loss of water from skin

Protects skin from heat

Ready penetration into the skin and appreciable water absorbing

property

Nourishes the hair roots and provides coolness to the body

Imparts hardness and lathering property to soaps

Illuminant and lubricant

Does not leave a smoky flame if used in open lamps

Only slight changes on hydrogenation

Blends well with other oils

Easily hydrolyses

Highest saponification value and lowest iodine value

Potential fatty raw material in chemical industry due to its

biodegradable nature

Excellent fat source in the preparation of filled milk and infant

food formulae

Essential for the manufacture of toilet soaps, shaving cream, liquid

soaps, 

natural shampoo and other cosmetics

Desirable emulsifying property

No harmful effects due to reheating

Can be converted into diesel fuel

Essential ingredient in ghee substitutes

Contains fatty acid derivatives such as monoglycerides, fatty

esters, polyol esters, fatty ethanolamide, ethoxylates, polysorbates

and betaines

Contains fatty alcohol derivatives such as fatty chlorides, fatty

alcohol sulphate and fatty alcohol ether sulphate. 

Nutritional / Medicinal

Does not contain cholesterol (All vegetable oils does not contain

cholesterol, but animal fats contain cholesterol eg: cow milk,

butter, ghee, curd, non-veg foods, etc.)

Easy digestibility and absorbability

Ideal energy source in baby foods

Contains Vitamin E

Composed mainly of short and Medium Chain Fatty Acids (MCFA)

or Medium Chain Triglycerides (MCT) which have desirable

qualities and functions

Reduced fat accumulation in body

Easily oxidized and therefore a preferred energy source

Requires no transport system to absorb, digest and metabolize

Very low content of Omega 6 fatty acid

Helps maintain healthy ratio of Omega 6 to Omega 3 fatty acids

when consumed as a part of diet

Rich content of lauric acid, the source of disease fighting fatty

acid derivative monolaurin

Contains 6-8 per cent monounsaturated oleic acid

Inhibitory effect against certain chemical carcinogens

Superior antigenotoxic activity.

Coconut oil aids faster absorption of calcium and thereby

strengthens bones and teech.

The saturated fats in coconut oil have antimicrobial properties.

Hence, coconut oil is highly effective against microbes that cause

indigestion.

Coconut oil also helps in the absorption of vitamins, minerals and

amino acids.

Studies undertaken by the Biochemistry Department, 

University of Kerala showed that coconut oil:

Does not elevate blood total cholesterol 

Increases blood HDL cholesterol

Consumed along with coconut kernel lowers blood cholesterol

Does not elevate LDL cholesterol or LDL cholesterol / HDL

cholesterol ratio

Decreases serum triglycerides

PROJECT REPORTOF

GRACE OILS

Kuttiyadu P.O.

Kozhikkodu

kerala

A Coconut oil Manufacturing Company

GRACE OIL MILL

Grace oil mill is to be constituted as a partnership firm at

kuttiyadu kozhikkodu district. The firm is constituted with a view to

exploit the opportunities in the field of oil mills.

In present days consumers get choice of selection. So they select

the quality products available in a reasonable price Every business is

started with the aim of making profit and provide good service to the

customer so my project is based on this aim providing quality coconut oil

and oil cake to the customer in a reasonable price.

Oil is essential for our day to day requirements. In south India oil

is largely used for making delicious food and sweets The basic

necessities for the manufacture of coconut oil are source of raw material

and availability if necessary infrastructure facilities like road, power,

land etc.. Oil is used as a raw material in soap industry and sweet

industry The waste of coconut like coconut husk, coconut shell etc.. is

used in coir industry and handicraft industry.

The promoters family owned one oil manufacturing mill in the

same village named Supriya oils ,so the raw material is not a problem

for the manufacture of coconut oil Beside coconut is easily available

locally. And also the experience of the family definitely help the new unit

in its new venture.

PROMOTERS

This is the partnership firm set up by Anish B. Mathew and Anoop

B. Mathew of Kadukanmackal (H) Kuttiyadu p.o Kozhikkodu. The

promoters are also partners of another family unit and named Supriya

oils and so they are experienced in this business. and also they are highly

qualified and educated

Anish B. Mathew 29, M.B.A

Anoop B. Mathew 28, M.B.A

The details in annexure - 1

PRODUCT AND MARKET

The proposed unit is intended to manufacture coconut oil using

coconut. The existing unit is now exporting their product to Europe,

U.S.A… Coconut oil is a finished product And so it has enough market

world wide when the demand for the product and availability of raw

material is considered the unit has got good scope. Proximity to the

several farms is the major advantages And the preference of people

residing in this area for good oil is another merit for the unit

LOCATION AND INFRA-STRUCTURAL

FACILITIES

Which is owned by partners of promoters and also by the

promoters. This land has good proximity to the main road there is

availability of abundant quantity of water, power, labour , material etc…

MARKETING STRUCTURE

(A) Product And its uses

In Kerala there is high demand for oil. It is the Kerala’s home oil.

The firm proposes to produce the coconut oil and sell it in the nearest

market. Most of the people living in Kerala give preference for coconut

oil and other coconut oil products. It is proposed to produce 500 ton per

year. The oil is demanded by all the people in Kerala. Coconut oil is used

for cooking, making sweets and also used as a raw material in soap

Industry, Ayurvedic medicines etc… And it has enough market world

wide.

(B)Availability of Raw Material

Coconut is the main raw material required for producing coconut

oil Most of big unit producing Coconut oil in Kerala is the problem of

non-availability of good coconut. The unit is proposed to locate in

Kuttiyadu, which is nearest at farm sector. According to survey there are

7500 acres Out of these 5000 acres is used for coconut cultivation. The

raw material can purchased from farmers directly. Proximity of the unity

to agriculture sector will reduce the transportation cost. The details are

annexed separately in Annexure V1.

(C) Demand For The Product

No people living Kerala can not think of avoiding oil from there

food preparation. The demand for oil is very large approximately 500 kg

per day in our panchayathu. But supply is only 200 kg. Remaining 300 kg

was purchased from nearest town, so the demand is very high the demand

for oil is not an ending one. It is used for bathing purpose. And also it

has enough market world wide. So it is expected that the business will

earn a average profit in the present and future.

(D) Sale of Product

Finding market for sale of goods is the very difficult task in

business. In this project the market is purely controllable and safety. The

sale of coconut oil, and oil cask is make through retail stores and sweets

industry and also to soap industries also. The market for oil is purely

defined. The price of an affordable one to the consumers. Coconut oil is

also demanded by hotels and soap industries. The co-products of this unit

i.e. oil cake is demanded by cattle farms And proposed to exporting oil to

Europe, Butan U.S.A

(E) Setting Arrangements

Good transportation is made in order to carry goods from the

Manufacturing

place to selling points .Godowns are available for storage of coconut oil.

MANUFACTURING PROCESS

The manufacturing process of coconut oil contains various

steps. They are pealing coconut, drying coconut, separating coconut

shells, cutting dried coconut, and crushing through expellers, and

separate oil and oil cake through filtering.

First of all we purchase bulk quantity of coconut from the

coconut farmers and coconut development unit. After that we separate

coconut in the different grades according to their size and quantity. After

that we cut it through machines and separate its nuts. And dried under

sunlight for a week , in rainy seasons also use smoke drying After that

separate the dried coconut from the outer shell s and cut it into several

small pieces and put dried coconut into the expeller and we get the oil

and cake through the outlet. After filtering we get the pure coconut oil

and it is filled in cans

FACTORS FOR THE IMPLEMENTATION OF

PROJECT

Land

Land is the basic requirement for the implementation of this project. A

well sighted position is also needed for the location of the factory. So the

proposed land is situated near the kozhikkodu –Thamarasseri main

road in kuttiyadu panchayathu. It is also a populated place and avail the

other necessities like, transport, communication, water and irrigation.

Details of land is given in Annexure1

Building

For the implementation of this project, a concrete roof building is

proposed to construction and this is divided in to two parts. One part is

used as machinery room and other part is used for office requirements.

The rooms are also separated by the sound proof walls. It have a

1500sqft space and also require Aluminum sheet proofing sheds for

storage of dried coconut. Details of building is given in Annexure1

Machinery

High tech expeller machine are used for crushing purposes and also use

the cutter machine, filter machine etc.. for reducing man power

requirements. The expeller is operated on a 10 H.P motors. This are the

basic machinery is used for this business. Details of machinery is given

in Annexure11

Vehicles

Vehicles are used for purchasing coconut and distribution of coconut

oil. For this purposes a mini lorry is required. It is proposed to buy

through a second sale purchased from Mr. Thomas.

Man power

Manpower is necessary for all business and proper placement of

manpower will encourage our business and will earn huge profit to the

business.

Power, Fuel and water

20000 units of electricity is needed for this per year and 4004 liter

diesel is required. Water is used only for drinking purpose and there is a

well in a corner of the land

COST OF PRODUCTION AND PROFIT ABILITY

FORTHE PROJECT

The cost of production and profitability statement are prepared on

the basis of following.

The unit excepts 300 working days per annum and 60% of the installed

machinery capacity utilization in the first year,65%capacity in the second year

68% capacity utilization in the third year and 70%,73%,76%,,80%,5%, 90%

,93?% respectively used for next ten years

Price of the material and price of the product is based on

Prevailing market price

Employees salary have been 2%annual increase.

The fluctuation in the price of the product are not taken into

consideration. It is expected that any increase in the cost of raw

materials and other expenses will be set by the corresponding.

increase in the sales revenue

Interest for the term loan and over draft is calculation at 12%

Depreciation provided at the rate of 10% on land and building,

machinery 15%, vehicles 20%.

WORKING CAPITAL

Working capital requirements Rs. 50 lakhs is necessary

FINANCING PATTERN

The total capital requirement of the unit is estimated Rs.193.32

lakhs. (Annexure no (V11) And out of which the partners is ready to

invest Rs.48.33 lakhs. Thy anticipate a financial assistance to support his

fixed capital requirement and working capital requirement are annexed

in annexure no V11.

PROFITABILITY ESTIMATE

The unit is proposed to generate a net profit of Rs. 27.84 lakhs

in the first year of operation. The details of profitability statement given

in Annexure no 1X

PROJECTED BALANCE SHEET

The projected balance sheet of the first seven years of the proposed

unit is given in annexure no X1, Which shows that the financial position

of the unit is very sound.

CASH FLOW STATEMENT

Cash flow statement for a period of seven years on the basis of the

above profitability statement is furnished as annexure - X

BREAK EVEN ANALYSIS

The detailed computation is attached as annexure – X111.

DEBT SERVICE COVERAGE RATIO

The ratio is given in annexure - X11

ANNEXURES

ANNEXURE I

BIO DATA OF THE PROMOTER

Name : Anish B. Mathew

: Anoop B. Mathew

Age : Anish B. Mathew :- 29

: Anoop B. Mathew :- 28

Address : Kadukanmackal (h)

: Kuttiyadu P.O.

: Kozhikkodu

Educational Qualification : Anish B. Mathew :M.B.A

: Anoop B. Mathew :M.B.A

Experience : The promoters are also partners of

another family unit and named

Supriya oils and so they are

experienced in this business

ANNEXURE II

DETAILS OF LAND & BUILDING

(Rs. In Lakhs)

ANNEXURE III

DETAILS OF MACHINERY AND EQUIPMENTS PROPOSED

(Rs in Lakhs)

Sl.No Descriptions Unit Qty Rate Amount

1 Imported Expeller Nos 3 22.30

Sl.no Description Unit Qty/

Rate

Rate Amount

1 Land owned acre 3 acre 20.00

2 Building 45.00

Total 65.00

2 10 H.p Motor Nos 2 35.00

3 Cutter Machine Nos 4 12.00

4 Filtter Nos 2 3.00

5 Installation Charges 4.02

Total 76.32

ANNEXURE 1V

MANPOWER REQUIREMENTS AND EMPLOYMENT POTENTIAL

(Rs in Lakhs)

Sl.No Category No Wages/Salary Amount

1 Promoter 2 10000/month 2.40

2 Clerk/Accountant 4 5000/month 2.40

3 Skilled Workers 10 250/day 7.50

4 Unskilled workers 20 150/day 90

Total Of Annual Salaries And Wages 21.30

ANNEXURE V

ANNUAL INCOME GENERATION

Sl.no Description Unit Qty/

Rate

Rate Amount

1 Coconut Oil Kg 100.16 333.00

2 Coconut cake Kg 25.00 22.73

Total 322.73

ANNEXURE V1

ANNUAL MATERIAL CONSUMPTION

(Rs in Lakhs)

Sl.N0 Production description Unit Qty Rate Amount

Per day 750.00 213.75

1 Pealed coconut kg 95.00 157.00 7.16

2 Dried coconut kg 15.00

Total 220.91

ANNEXURE V11

COST OF PRODUCT AND MEANS OF FINANCE

(Rs in Lakhs)

Sl.No Item Status Amount

1 Land owned 20.00

2 Building proposed 45.00

3 Plant& Machinery proposed 76.32

4 Miscellaneous fixed asset 1.00

5 Preliminary and pre operative- exp 1.00

6 Working capital requirement 50.00

Total 193.32

ANNEXURE VIII

TERM LOAN REPAYMENT SCHEDULE

Sl.No Source Amount

1 Term loan from bank 107.49

2 Promoters contribution 35.83

3 Working capital loan from bank 37.834 Working capital- Promoters contribution 12.50

Year Operating Amount Interest per Annum

Amount Repaid

Closing Amount

1 107.49 12.48 15.36 92.13

2 92.13 10.55 15.36 76.78

3 76.78 8.63 15.36 61.42

4 61.42 6.72 15.36 46.07

5 46.07 4.80 15.36 30.71

6 30.71 2.88 15.36 15.35

7 15.35 0.96 15.36 0.00

ANNEXURE IX

COST OF PRODUCTION AND PROFITABILITY STATEMENT

ANNEXURE X

CASH FLOW STATEMENT

1 2 3 4 5 6 7

Sl.No Item Years1 2 3 4 5 6 7

1 Sales (1)

2 Cost of ProductionMaterial 176.72 187.77 189.98 192.19 194.40 195.50 195.50

Salary 21.30 23.43 25.77 27.06 27.04 28.41 28.41

Incurrence 0.60 0.65 0.70 0.70 0.70 0.75 0.80

Depreciation

12.13 12.13 12.13 12.13 12.13 12.13 12.13

Repairs 7.63 8.40 9.23 10.16 11.17 12.29 13.52

Power 6.00 6.60 7.26 7.99 8.78 9.66 10.10

SubTotal (2)

224.39 238.98 245.08 250.23 254.25 258.75 260.46

3 Selling And administrative ExpensesRate & tax 1.70 1.82 1.85 1.88 1.90 1.92 1.92

Administrative exp.

.50 .53 .55 .58 .61 .61 .67

Sub Total (3)

2.20 2.35 2.47 2.46 2.51 2.56 2.59

4 Financial ExpensesInterest on term loan

12.48 10.55 8.63 6.72 4.80 2.88 0.96

Interest on Working capital

4.88 4.88 4.88 4.88 4.88 4.88 4.88

Sub Total (4)

17.36 15.43 13.51 11.60 9.68 7.76 5.84

GrandTotal 1-(2+3+4)

243.95 256.75 260.99 264.28 266.43 269.07 268.89

6 Operating Profit

40.05 46.61 47.21 48.76 49.84 50.43 50.61

7 Preliminary expenses

0.20 0.20 0.20 0.20 0.20 0.20 0.20

8 Income tax 12.02 13.98 14.16 14.63 14.95 15.13 15.18

9 Net Profit=5-(6+7)

27.84 32.43 32.85 33.93 34.69 35.10 35.23

A Source1. profit before interest and tax

57.21 61.84 60.52 60.16 59.32 57.99 56.25

2 Depreciation 12.13 12.13 12.13 12.13 12.13 12.13 12.133 Promoters capital

48.33 0.00 0.00 0.00 0.00 0.00 0.00

4 Term loan 107.495 WC Loan 37.506 perl and pre op expenses

0.20 0.20 0.20 0.20 0.20 0.20 0.20

Sub Total - 262.82 74.17 72.86 72.49 71.65 70.32 68.58B Application1. Land and building

65.00

2. Machinery and equipments

76.32

3. Perl and pre op expenses

2.00

4.. Current Assets 50.00 0.00 0.00 0.00 0.00 0.00 0.00

6. Repayment of Term loan

15.36 15.36 15.36 15.36 15.36 15.36 15.35

7. Interest on term loan and w/c

17.36 15.43 13.51 11.60 9.68 7.76 5.84

7. Income tax 30%

12.02 13.98 14.16 14.63 14.95 15.13 15.18

Sub total - 238.05 44.77 43.03 41.58 39.99 38.25 36.37Opening 24.81 54.21 84.07 114.95 146.61 178.69Net surplus 24.81 29.40 29.83 30.91 31.66 32.08 32.21Closing 24.81 54.21 84.04 114.95 146.61 178.69 210.90

(Rs. In lakhs)

ANNEXURE-X1

PROJECTED BALANCE SHEET

Years

Liabilities 1 2 3 4 5 6 7

Capital 48.33 48.33 48.33 48.33 48.33 48.33 48.33

Reserves 27.84 60.26 93.11 127.05 161.73 196.73 232.06

WorkingCapital 37.50 37.5 37.5 37.5 37.5 37.5 37.5

Bankloan MLT 92.13 76.78 61.42 46.07 30.71 15.35

Total 205.80 222.87 240.36 258.94 278.27 298.02 217.89

Assets

Land 20.00 20.00 20.00 20.00 20.00 20.00 20.00

Fixed assets

(includingBuilding)

109.19 97.06 54.92 72.79 60.66 48.53 36.40

Current Asset 50.00 50.00 50.00 50.00 50.00 50.00 50.00

Cash in hand 1.80 54.21 84.04 114.95 146.61 178.69 210.90

Cash at bank 1.80 1.60 1.40 1.20 1.00 0.80 0.60

Total 205.80 222.87 240.36 258.94 278.27 298.02 317.89

ANNEXURE XII

Debt Service Coverage Ratio

Sl. No Years

1 2 3 4 5 6

1 Profit 27.84 32.43 32.85 33.93 34.69 35

2 Depreciation 12.13 12.13 12.13 12.13 12.13 12.13

3 PreliminaryExpences 0.20 0.20 0.20 0.20 0.20 0.20

4 Interest On term Loan 12.48 10.55 8.63 6.72 4.80 2.88

Total A 52.65 55.31 53.812 52.985 51.819 50.315

1 Interest on term loan 12.48 10.55 8.63 6.72 4.80 2.88

2 Repayment of T L 15.36 15.36 15.36 15.36 15.36 15.36

Total B 27.84 25.91 23.99 22.08 20.16 18.24

Debt Service Coverage Ratio

(A/B)1.89 2.13 2.24 2.40 2.57 2.76

ANNEXURE XIII

BREAK EVEN ANALYSIS

Rs. In lakhs)

1 2 3 4 5 6 7Sales 284 303.36 308.20 313.04 316.27 319.50 319A 284 303.36 308.20 313.04 316.27 319.50 319Variable costRaw me trials 176.72 187.77 189.98 192.19 194.40 195.5 195.5Power 6.00 6.60 7.26 7.99 8.78 9.66 10.10Employees remuneration

21.30 23.43 25.77 27.06 27.04 28.41 28.41

Selling expenses 1.70 1.82 1.85 1.88 1.90 1.92 1.92B 205.72 219.62 224.86 229.12 232.12 235.49 235.93Contribution (A-B)

78.28 83.74 83.34 83.92 84.15 84.01 83.07

Fixed costEstablishment & Administration

0.50 0.53 0.55 0.58 0.61 0.61 0.67

Repairs and maintance

7.63 8.4 9.23 10.16 11.17 12.13 12.13

Depreciation 12.13 12.13 12.13 12.13 12.13 12.13 12.13Interest on loan 17.36 15.43 13.51 11.60 9.68 7.76 5.84Total 37.62 36.49 35.42 34.47 33.59 32.63 30.77Break even point 48.05

%43.57% 42.5% 41.07% 39.92% 38.84% 37.04%

CONCLUSION

The project report in the result of a truth attempt to understand

different aspects of project of a project idea. The demand for coconut

oil is increased .Most of the peoples give preference for coconut oil

Financial, Commercial, Economical And Environmental dimensions of

the proposed project have been analyzed. In order to after the financial

viability of the project variable tools like a projected balance sheet,

profit and loss account, cash flow statements etc…have been made.

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