PM FME- Detailed Project Report of Bread Making Unit

DETAILED PROJECT REPORT

BREAD MAKING UNIT

UNDER PMFME SCHEME

National Institute of Food Technology Entrepreneurship and Management

Ministry of Food Processing Industries

Plot No.97, Sector-56, HSIIDC, Industrial Estate, Kundli, Sonipat, Haryana-131028

Website: http://www.niftem.ac.in

Email: pmfmecell@niftem.ac.in

Call: 0130-2281089

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 PM FME- Detailed Project Report of Bread Making Unit

TABLE OF CONTENTS

S No. Topic Page

Number
1. Project Summary 3
2. About the Product 4-6
3. Process Flow Chart 7-8
4. Economics of the Project 9-26
4.1. Basis & Presumptions 9
4.2. Capacity , Utilisation, Production & Output 10-11
4.3. Premises/Infrastructure 11
4.4. Machinery & Equipments 12-14
4.5. Misc. Fixed Assets 14
4.6. Total Cost of Project 14
4.7. Means of Finance 15
4.8 Term Loan 15
4.9. Term Loan repayment & interest schedule 15-18
4.10. Working Capital Calculations 19
4.11. Salaries/Wages 20
4.12. Power Requirement 20
4.13. Depreciation Calculation 21
4.14. Repairs & Maintenance 21
4.15. Projections of Profitability Analysis 22
4.16. Break Even Point Analysis 23
4.17. Projected Balance Sheet 24
4.18. Cash- Flow Statement 25
4.19. Debt-Service Coverage Ratio 26

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 PM FME- Detailed Project Report of Bread Making Unit

1. PROJECT SUMMARY

1. Name of the proposed project : Bread Making Unit

2. Nature of proposed project : Proprietorship/Company/Partnership
3. Proposed project capacity : 232800 Kg/annum(55,60,62,65,&70% capacity
utilization in 1st to 5th Year respectively)

4. Raw materials : Flour, Gluten Powder, Bread Improver, Calcium

Powder, Sugar, Salt, Oil.
5. Major product outputs : Bread
6. Total project cost : Rs.18.69 Lakh
• Land development, building & Civil : Nil
Construction
• Machinery and equipment’s : Rs.13.60 Lakh
• Miscellaneous Fixed Assets : Rs.1.20 Lakh
• Working capital : Rs.3.89 Lakh
8. Means of Finance
• Subsidy (max 10lakhs) : Rs.5.18 Lakh

• Promoter’s contribution (min10%) : Rs.1.86 Lakh

• Term loan : Rs.8.14 Lakh

• Working Capital Requirement : Rs.3.50 Lakh
9. Profit after Depreciation, Interest & Tax

• 1styear : Rs.1.11 Lakh

• 2ndyear : Rs.2.44 Lakh
• 3rd year : Rs.3.49 Lakh
• 4th year : Rs.4.22 Lakh
• 5th year : Rs.5.80 Lakh
11. Average DSCR : 2.65
12. Term loan repayment : 5 Years with 6 months grace period

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 PM FME- Detailed Project Report of Bread Making Unit

2. ABOUT THE PRODUCT

2.1. PRODUCT INTRODUCTION:

Bread is one of the oldest and largest foodstuffs eaten and is consumed by all age groups all over
the world. It has been a popular food in large parts of the world throughout documented history
and is one of the oldest man-made foods, having been of great significance since the dawn of
agriculture. Bread is a mixture of flour, water, salt, yeast and other ingredients that is the result
of baking. From a nutritional viewpoint, good bread has a variety of standards, from wheat
production to methods of storage. The basic dietary minerals, mainly magnesium, calcium,
potassium, sodium, and iron, are also given by bread. In those instances where it is finally
reinforced with them, it may be a perfect supplier of micronutrients. Bread can be represented by
a series of processes involving mixing, kneading, proofing, forming, baking as a fermented
confectionery product that is produced primarily from wheat flour, yeast, water, sugar, salt and
other necessary ingredients.

Bread is a staple food prepared, usually by baking, from flour and water dough. It has been a
popular food in large parts of the globe throughout documented history. It is one of the oldest
foods produced by man, which has been of major importance since the dawn of agriculture, and
plays an important role in both religious rites and secular culture. To make good bread, dough
created by any process must be sufficiently extensible to relax and expand while it rises. If it's
going to stretch out when pulled, a strong dough is extendable. It must also be elastic, that is,
have the power to hold the emitted gases when growing, and stable enough to preserve its shape
and cell structure.

Bread may be leavened by naturally occurring bacteria, chemicals, yeast developed industrially,
or aeration at high pressure. Commercial bread also includes additives in many countries to
enhance taste, texture, color, shelf life, nutrition and ease of production.

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2.2 MARKET POTENTIAL:

The global market bread product is divided by product type (Loaves, Baguettes, Rolls, Burger
Buns, Sandwich Slices, Ciabatta, Frozen Bread, and Others), Distribution Channel (Convenience
Stores, Specialist Retailers, Supermarkets and Hypermarkets, Online Retail, Variety Stores, and
Others), and by Geography. Global bread market is projected to register a CAGR of 1.43% during
the forecast period, 2019 - 2024. During the forecast period, 2019 - 2024, the global bread market
is expected to register a CAGR of 1.43%. Since the nineties, the Indian bread industry has come a
long way. For certain clients, bread has progressed from being viewed as a fundamental breakfast
food item to being a confectionary item. Rising disposable sales, urbanization, and changing
customer tastes and behaviors have provided the bread industry a boost over the years.

The Indian bread market stood at $640.73 million in 2017, and is projected to rise to $1024.54
million by 2024 at a CAGR of over 10.70 percent, in value terms, during 2019-2024. Market
factors and demographic patterns are increasingly affecting supply and demand; India's bread
market is aided by an expanding working population and a rising number of health-conscious
consumers.. The bread industry in India is dominated by unorganized players, leading to about
55% of the total market.

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2.3 RAW MATERIAL DESCRIPTION:

In several countries, including developed countries, cereal products, mainly in the form of bread,
play an important role in the diet, although some of these are experiencing a slow decline in cereal
consumption. Fundamental Structure: Basic Structure: Three main components-
 Water
 Gluten proteins
 Starch granules
The texture of bread and pastries depends 100% on how the "other stuff" interacts with these
components.

S.N. Name

1. Flour

2. Gluten powder

3. Bread Improver

5. Sugar

6. Salt

7. Oil

Owing to their nutritional benefits, the market for functional ingredients in bakery products is
growing.

• Bread has catered to more practical demand, becoming a staple food that is a big part of the
regular diet.
• The demand growth was sparked by new low-carb, high-fiber, multigrain, and fortified bread
appealing to health-conscious customers.
• In addition to practical health benefits, there is an increase in the incorporation of natural
ingredients, such as natural preservatives, antioxidants, and bread enzymes

Average raw material cost is Rs.30-40 per Kg.

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3. PROCESS FLOW CHART

 The production of bread begins with mixing of the ingredients. For this purpose, 32-45%
Maida, 50-64% water, 2% yeast, 2% salt and optionally fat, emulsifiers and sugar are
combined.

 After mixing the ingredients, the dough is kneaded. The dough is kneaded after the
components have been combined. The dough creates the gluten network and creates air
bubbles that can absorb carbon dioxide (Co2), created by fermentation.

 Proofing is the process of leaving the dough in the machine for 30 to 50 minutes at a steady
temperature of 27°C.

 The rising of the dough will take about 30 minutes, at a humidity of 85% and a temperature
of 34°C. During this process the dough can rest and this will make it easier to (pre) shape
later.

 After the folding, the dough is shaped for use in a baking tin. The forming of the dough
into a long roll is called shaping. During the shaping process the dough ball is rolled into a
slab. This slab is then rolled back up to fit into the backing tin.

 The bread needs to cool down before it is cut and packed. Packing it before the bread is
cooled down will lead to condensation in the bag.

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FLOW CHART OF BREAD MAKING PROCESS

Dough Kneading Slicing Packaging

Mixing Baking

Moulding Leavening

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4. ECONOMICS OF THE PROJECT

4.1. BASIS & PRESUMPTIONS

1. Production Capacity of Bread taken is 800 Kgs per day. First year, Capacity has been taken
@ 55%.

2. Working shift of 8 hours per day has been considered.

3. Raw Material stock is for 20 days and finished goods Closing Stock has been taken for 3
days (due to perishable nature of product).

4. Credit period to Sundry Debtors has been given for 10 days.

5. Credit period by the Sundry Creditors has been provided for 10 days.

6. Depreciation and Income tax has been taken as per the Income tax Act,

1961.

7. Interest on working Capital Loan and Term loan has been taken at 11%.

8. Salary and wages rates are taken as per the Current Market Scenario.

9. Power Consumption has been taken at 10 KW.

10. Selling Prices & Raw material costing has been increased by 5% & 5% respectively in the
subsequent years.

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4.2. CAPACITY, UTILIZATION, PRODUCTION & OUTPUT

COMPUTATION OF PRODUCTION OF BREAD

Items to be Manufactured
Bread

Machine capacity Per hour 100 Kg

Total working Hours 8
Machine capacity Per Day 800 Kg

Working days in a month 25 Days

Working days per annum 300
Wastage Considered 3%
Raw material requirement 240000 Kg
Final Output per annum after wastage 232800 Kg
Final Product to be packed in 1 kg Packet
Number of Packets per annum 232800 Kg

Production of Bread

Production Capacity KG

1st year 55% 1,28,040

2nd year 60% 1,39,680

3rd year 62% 1,44,336

4th year 65% 1,51,320

5th year 70% 1,62,960

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Raw Material
Cost
Year Capacity Rate Amount
Utilisation (per Kg) (Rs. in lacs)

1st year 55% 30.00 39.60

2nd year 60% 32.00 46.08

3rd year 62% 34.00 50.59

4th year 65% 36.00 56.16

5th year 70% 38.00 63.84

COMPUTATION OF SALE

Particulars 1st year 2nd year 3rd year 4th year 5th year

Op Stock - 1,280 1,397 1,443 1,513

Production 1,28,040 1,39,680 1,44,336 1,51,320 1,62,960

Less : Closing
Stock 1,280 1,397 1,443 1,513 1,630

Net Sale 1,26,760 1,39,564 1,44,289 1,51,250 1,62,844

sale price per packet 50.00 53.00 56.00 59.00 62.00

Sales (in Lacs) 63.38 73.97 80.80 89.24 100.96

4.3. PREMISES/INFRASTRUCTURE

The approximate total area required for complete small scale factory setup is 800-1000 square feet
for smooth production including storage area. It is expected that the premises will be on rental.

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4.4. MACHINERY & EQUIPMENTS

Steps Machines Uses Image

Dough Kneading Dough Kneading Bread machine to knead bread

dough for you, or you could go
with a heavy duty stand mixer
with a dough hook attachment.

Mixing Mixer machine A mixer, depending on the type

also called a hand mixer or
stand mixer, is a kitchen device
that uses a gear-driven
mechanism to rotate a set of
"beaters" in a bowl.

Moulding Moulding frames The container used to give the

dough of the breads shape.

Leavening Leavening One of a number of substances

that cause foaming results in
doughs and batters that lighten
and soften the mixture.

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 PM FME- Detailed Project Report of Bread Making Unit
Baking Baking oven An oven is a thermally insulated
chamber used for the
heating, baking, or drying of a
substance

slicing Bread Slicing Bread slicing machine, Cut

machine loaves of bread evenly use for
bread slicing machine. Bread
slicing machines represent a
milestone in the food
processing business.

Packaging Impulse sealer Impulse sealing is typically used

to seal the barrier sacks and
sack bags with many layers,
metal and oxygen.

Machine Unit Rate Price

Dough Kneading (25 Kg) 4 60,000 2,40,000

Mixer machine (Capacity - 2 2,00,000 4,00,000

50 Kg)

Moulding Frames 100 450 45,000

Leavening (12 Trays) 3 42,000 1,26,000

Baking oven (36 Trays) 1 5,00,000 5,00,000

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 PM FME- Detailed Project Report of Bread Making Unit
Bread Slicing machine (36 1 48,000 48,000
Slices)

Impulse sealer (50 pouches 1499 1,499

per hour)

Note: Cost of the machinery is approx. Rs.13.60 Lakhs excluding GST and other transportation
cost.

4.5. MISCELLANEOUS FIXED ASSETS

 Electricity Connection & Fitting
 Furniture & Equipment’s

4.6. TOTAL COST OF PROJECT

COST OF PROJECT
(in Lacs)

PARTICULARS Amount

Land & Building Owned/Rented

Plant & Machinery 13.60
Miscellaneous Assets 1.20
Working capital 3.89
Total 18.69

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4.7. MEANS OF FINANCE

MEANS OF FINANCE

PARTICULARS AMOUNT
Own Contribution (min 10%) 1.86
Subsidy @35%(Max. Rs 10 Lac) 5.18
Term Loan @ 55% 8.14
Working Capital (Bank Finance) 3.50
Total 18.69

4.8. TERM LOAN: Term loan of Rs.8.14 Lakh is required for project cost of Rs.18.69 Lakh.

4.9. TERM LOAN REPAYMENT & INTEREST SCHEDULE

REPAYMENT SCHEDULE OF TERM LOAN

Interest 11.00%
Closing
Year Particulars Amount Addition Total Interest Repayment Balance
1st Opening Balance

1st month - 8.14 8.14 - - 8.14

2nd month 8.14 - 8.14 0.07 - 8.14

3rd month 8.14 - 8.14 0.07 - 8.14

4th month 8.14 - 8.14 0.07 8.14

5th month 8.14 - 8.14 0.07 8.14

6th month 8.14 - 8.14 0.07 8.14

7th month 8.14 - 8.14 0.07 0.15 7.99

8th month 7.99 - 7.99 0.07 0.15 7.84

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9th month 7.84 - 7.84 0.07 0.15 7.69

10th month 7.69 - 7.69 0.07 0.15 7.54

11th month 7.54 - 7.54 0.07 0.15 7.39

12th month 7.39 - 7.39 0.07 0.15 7.24

0.80 0.90
2nd Opening Balance

1st month 7.24 - 7.24 0.07 0.15 7.08

2nd month 7.08 - 7.08 0.06 0.15 6.93

3rd month 6.93 - 6.93 0.06 0.15 6.78

4th month 6.78 - 6.78 0.06 0.15 6.63

5th month 6.63 - 6.63 0.06 0.15 6.48

6th month 6.48 - 6.48 0.06 0.15 6.33

7th month 6.33 - 6.33 0.06 0.15 6.18

8th month 6.18 - 6.18 0.06 0.15 6.03

9th month 6.03 - 6.03 0.06 0.15 5.88

10th month 5.88 - 5.88 0.05 0.15 5.73

11th month 5.73 - 5.73 0.05 0.15 5.58

12th month 5.58 - 5.58 0.05 0.15 5.43

0.70 1.81
3rd Opening Balance

1st month 5.43 - 5.43 0.05 0.15 5.28

2nd month 5.28 - 5.28 0.05 0.15 5.13

3rd month 5.13 - 5.13 0.05 0.15 4.97

4th month 4.97 - 4.97 0.05 0.15 4.82

5th month 4.82 - 4.82 0.04 0.15 4.67

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6th month 4.67 - 4.67 0.04 0.15 4.52

7th month 4.52 - 4.52 0.04 0.15 4.37

8th month 4.37 - 4.37 0.04 0.15 4.22

9th month 4.22 - 4.22 0.04 0.15 4.07

10th month 4.07 - 4.07 0.04 0.15 3.92

11th month 3.92 - 3.92 0.04 0.15 3.77

12th month 3.77 - 3.77 0.03 0.15 3.62

0.51 1.81
4th Opening Balance

1st month 3.62 - 3.62 0.03 0.15 3.47

2nd month 3.47 - 3.47 0.03 0.15 3.32

3rd month 3.32 - 3.32 0.03 0.15 3.17

4th month 3.17 - 3.17 0.03 0.15 3.01

5th month 3.01 - 3.01 0.03 0.15 2.86

6th month 2.86 - 2.86 0.03 0.15 2.71

7th month 2.71 - 2.71 0.02 0.15 2.56

8th month 2.56 - 2.56 0.02 0.15 2.41

9th month 2.41 - 2.41 0.02 0.15 2.26

10th month 2.26 - 2.26 0.02 0.15 2.11

11th month 2.11 - 2.11 0.02 0.15 1.96

12th month 1.96 - 1.96 0.02 0.15 1.81

0.31 1.81
5th Opening Balance

1st month 1.81 - 1.81 0.02 0.15 1.66

2nd month 1.66 - 1.66 0.02 0.15 1.51

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3rd month 1.51 - 1.51 0.01 0.15 1.36

4th month 1.36 - 1.36 0.01 0.15 1.21

5th month 1.21 - 1.21 0.01 0.15 1.06

6th month 1.06 - 1.06 0.01 0.15 0.90

7th month 0.90 - 0.90 0.01 0.15 0.75

8th month 0.75 - 0.75 0.01 0.15 0.60

9th month 0.60 - 0.60 0.01 0.15 0.45

10th month 0.45 - 0.45 0.00 0.15 0.30

11th month 0.30 - 0.30 0.00 0.15 0.15

12th month 0.15 - 0.15 0.00 0.15 -

0.11 1.81
DOOR TO DOOR 60 Months
MORATORIUM
PERIOD 6 Months
REPAYMENT PERIOD 54 Months

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4.10. WORKING CAPITAL CALCULATIONS

(in
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL Lacs)
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Finished Goods
0.56 0.64 0.70 0.77 0.87

Raw Material
2.64 3.07 3.37 3.74 4.26
Closing Stock 3.20 3.72 4.07 4.51 5.12

COMPUTATION OF WORKING CAPITAL REQUIREMENT

TRADITIONAL METHOD (in Lacs)
Particulars Amount Own Margin Bank Finance
Finished Goods & Raw Material 3.20
Less : Creditors 1.32
Paid stock 1.88 10% 0.19 90% 1.69
Sundry Debtors 2.11 10% 0.21 90% 1.90
3.99 0.40 3.59

MPBF 3.59
WORKING CAPITAL LIMIT DEMAND ( from Bank) 3.50
Working Capital Margin 0.39

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4.11. SALARY & WAGES

BREAK UP OF LABOUR CHARGES

Particulars Wages No of Total

Rs. per Month Employees Salary

Skilled (in thousand rupees) 12,000 3 36,000

Unskilled (in thousand rupees) 6,000 2 12,000
Total salary per month 48,000
Total annual labour charges (in lacs) 5.76

BREAK UP OF STAFF SALARY CHARGES

Particulars Salary No of Total

Rs. per Month Employees Salary
Helper 7,500 1 7,500

Total salary per month 7,500

Total annual Staff charges (in lacs) 0.90

4.12 POWER REQUIREMENT

Utility Charges (per month)

Particulars value Description
Power connection required 10 KWH
consumption per day 80 units

Consumption per month 2,000 units

Rate per Unit 10 Rs.

power Bill per month 20,000 Rs.

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4.13. DEPRECIATION CALCULATION

COMPUTATION OF DEPRECIATION (in Lacs)

Description Plant & Machinery Miss. Assets TOTAL
Rate of Depreciation 15.00% 10.00%
Opening Balance - - -

Addition 13.60 1.20 14.80

Total 13.60 1.20 14.80
Less : Depreciation 2.04 0.12 2.16
WDV at end of Year 11.56 1.08 12.64

Additions During The Year - - -

Total 11.56 1.08 12.64
Less : Depreciation 1.73 0.11 1.84
WDV at end of Year 9.83 0.97 10.80
Additions During The Year - - -
Total 9.83 0.97 10.80
Less : Depreciation 1.47 0.10 1.57
WDV at end of Year 8.35 0.87 9.23

Additions During The Year - - -

Total 8.35 0.87 9.23

Less : Depreciation 1.25 0.09 1.34

WDV at end of Year 7.10 0.79 7.89

Additions During The Year - - -
Total 7.10 0.79 7.89
Less : Depreciation 1.06 0.08 1.14
WDV at end of Year 6.03 0.71 6.74

4.14. REPAIR & MAINTENANCE: Repair & Maintenance is 2.5% of Gross Sale.
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4.15. PROJECTIONS OF PROFITABILITY ANALYSIS

PROJECTED PROFITABILITY STATEMENT (in Lacs)

2nd 3rd 4th

PARTICULARS 1st year year year year 5th year
Capacity Utilisation % 55% 60% 62% 65% 70%

SALES
Gross Sale
Bread 63.38 73.97 80.80 89.24 100.96

Total 63.38 73.97 80.80 89.24 100.96

COST OF SALES
Raw Material Consumed 39.60 46.08 50.59 56.16 63.84
Electricity Expenses 2.40 2.76 3.17 3.65 4.02
Depreciation 2.16 1.84 1.57 1.34 1.14
Wages & labour 5.76 6.34 6.97 7.53 8.13
Repair & maintenance 1.58 1.85 2.02 2.23 2.52
Packaging 4.44 5.55 5.49 6.07 6.87
Cost of Production 55.94 64.41 69.82 76.98 86.52
Add: Opening Stock /WIP - 0.56 0.64 0.70 0.77
Less: Closing Stock /WIP 0.56 0.64 0.70 0.77 0.87
Cost of Sales 55.38 64.33 69.77 76.91 86.42
GROSS PROFIT 8.00 9.64 11.03 12.33 14.54
12.62% 13.03% 13.66% 13.82% 14.40%
Salary to Staff 0.90 1.04 1.27 1.46 1.61
Interest on Term Loan 0.80 0.70 0.51 0.31 0.11
Interest on working Capital 0.39 0.39 0.39 0.39 0.39
Rent 3.60 3.96 4.36 4.79 5.27
selling & adm exp 1.20 1.11 0.97 1.07 1.01
TOTAL 6.89 7.20 7.49 8.02 8.38
NET PROFIT 1.11 2.44 3.54 4.31 6.16
1.75% 3.29% 4.39% 4.83% 6.10%
Taxation - - 0.05 0.09 0.36
PROFIT (After Tax) 1.11 2.44 3.49 4.22 5.80

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4.16. BREAK EVEN POINT ANALYSIS

BREAK EVEN POINT ANALYSIS

Year I II III IV V

Net Sales & Other Income 63.38 73.97 80.80 89.24 100.96
Less : Op. WIP Goods - 0.56 0.64 0.70 0.77
Add : Cl. WIP Goods 0.56 0.64 0.70 0.77 0.87

Total Sales 63.94 74.05 80.86 89.31 101.06

Variable & Semi Variable Exp.

Raw Material Consumed 39.60 46.08 50.59 56.16 63.84
Electricity Exp/Coal Consumption at
85% 2.04 2.35 2.70 3.10 3.41
Wages & Salary at 60% 4.00 4.43 4.95 5.40 5.84
Selling & adminstrative Expenses 80% 0.96 0.89 0.78 0.86 0.81
Interest on working Capital 0.385 0.385 0.385 0.385 0.385
Repair & maintenance 1.58 1.85 2.02 2.23 2.52
Packaging 4.44 5.55 5.49 6.07 6.87
Total Variable & Semi Variable Exp 53.01 61.52 66.91 74.20 83.68
Contribution 10.93 12.53 13.94 15.11 17.38

Fixed & Semi Fixed Expenses

Electricity Exp/Coal Consumption at
15% 0.36 0.41 0.48 0.55 0.60
Wages & Salary at 40% 2.66 2.95 3.30 3.60 3.90
Interest on Term Loan 0.80 0.70 0.51 0.31 0.11
Depreciation 2.16 1.84 1.57 1.34 1.14
Selling & adminstrative Expenses 20% 0.24 0.22 0.19 0.21 0.20
Rent 3.60 3.96 4.36 4.79 5.27
Total Fixed Expenses 9.82 10.09 10.40 10.80 11.22

Capacity Utilization 55% 60% 62% 65% 70%

OPERATING PROFIT 1.11 2.44 3.54 4.31 6.16
BREAK EVEN POINT 49% 48% 46% 46% 45%
BREAK EVEN SALES 57.45 59.66 60.30 63.81 65.26

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4.17. PROJECTED BALANCE SHEET

PROJECTED BALANCE SHEET (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Liabilities

Capital
opening balance 8.15 10.08 12.08 14.30
Add:- Own Capital 1.86
Add:- Retained Profit 1.11 2.44 3.49 4.22 5.80
Less:- Drawings - 0.50 1.50 2.00 3.50
Subsidy/grant 5.18
Closing Balance 8.15 10.08 12.08 14.30 16.60
Term Loan 7.24 5.43 3.62 1.81 -
Working Capital Limit 3.50 3.50 3.50 3.50 3.50
Sundry Creditors 1.32 1.54 1.69 1.87 2.13
Provisions & Other Liab 0.40 0.50 0.60 0.72 0.86
TOTAL : 20.60 21.05 21.48 22.20 23.09

Assets
Fixed Assets ( Gross) 14.80 14.80 14.80 14.80 14.80
Gross Dep. 2.16 4.00 5.57 6.91 8.06
Net Fixed Assets 12.64 10.80 9.23 7.89 6.74

Current Assets
Sundry Debtors 2.11 2.47 2.69 2.97 3.37
Stock in Hand 3.20 3.72 4.07 4.51 5.12
Cash and Bank 2.65 4.07 5.49 6.82 7.86
TOTAL : 20.60 21.05 21.48 22.20 23.09

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4.18. CASH FLOW STATEMENT

PROJECTED CASH FLOW STATEMENT (in Lacs)

1st 2nd 3rd 4th

PARTICULARS year year year year 5th year
SOURCES OF FUND

Own Margin 1.86

Net Profit 1.11 2.44 3.54 4.31 6.16
Depriciation & Exp. W/off 2.16 1.84 1.57 1.34 1.14
Increase in Cash Credit 3.50 - - - -
Increase In Term Loan 8.14 - - - -
Increase in Creditors 1.32 0.22 0.15 0.19 0.26
Increase in Provisions & Oth lib 0.40 0.10 0.10 0.12 0.14
Sunsidy/grant 5.18
TOTAL : 23.67 4.59 5.37 5.96 7.70
APPLICATION OF FUND
Increase in Fixed Assets 14.80
Increase in Stock 3.20 0.52 0.35 0.44 0.61

Increase in Debtors 2.11 0.35 0.23 0.28 0.39

Repayment of Term Loan 0.90 1.81 1.81 1.81 1.81

Drawings - 0.50 1.50 2.00 3.50

Taxation - - 0.05 0.09 0.36
TOTAL : 21.02 3.18 3.94 4.62 6.66

Opening Cash & Bank Balance - 2.65 4.07 5.49 6.82

Add : Surplus 2.65 1.41 1.42 1.34 1.04
Closing Cash & Bank Balance 2.65 4.07 5.49 6.82 7.86

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 PM FME- Detailed Project Report of Bread Making Unit

4.19. DEBT SERVICE COVERAGE RATIO

CALCULATION OF D.S.C.R

1st 2nd 3rd 4th 5th

PARTICULARS year year year year year

CASH ACCRUALS 3.27 4.28 5.06 5.56 6.94

Interest on Term Loan 0.80 0.70 0.51 0.31 0.11

Total 4.07 4.98 5.57 5.87 7.05

REPAYMENT

Instalment of Term Loan 0.90 1.81 1.81 1.81 1.81

Interest on Term Loan 0.80 0.70 0.51 0.31 0.11

Total 1.70 2.51 2.31 2.12 1.92

DEBT SERVICE COVERAGE

RATIO 2.39 1.98 2.41 2.77 3.68
AVERAGE D.S.C.R. 2.65

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