CMAAA/AG/VC/01

Project Profile
for
Financial Assistance
under
Chief Minister’s Atmanirbhar Asom Abhijan (CMAAA)

Name of the scheme: Vermicompost preparation Unit

Total project cost: Rs.2,30,000.00/-
 Project at a glance

1. Name of the Entrepreneur :

2. Constitution (Legal status) : Individual

3. Father’s/ Spouse’s Name :

4. Contact details :
District :
LAC :
Block/Town :
Village/Ward :
PO :
PIN :
Email ID :
Mobile No. :
5. Location of the unit :
District :
LAC :
Block/Town :
Village/Ward :
PO :
PIN :

6. Existing Bank Details : A/c No.-

Bank & Branch:
IFS Code:
7. Proposed Activity : Vermicompost Preparation unit

8. Cost of the Project : Rs. 230000.00 (Approx.)

9. Means of Finance :
Govt. Subsidy : Rs.100000.00
Bank loan : Rs.130000.00
Total : Rs.230000.00
2nd trench of Govt. assistance of Rs.100000.00 after 1 year & third party verification.
(Govt. may consider further assistance to the successful units)

10. Pay Back Period : 5 years

 1. Background:

The "Chief Minister's Atmanirbhar Asom Abhijan 2023" is a visionary initiative of

Hon’ble Chief Minister of Assam, aimed at addressing the issue of unemployment and
fostering inclusive progress in the state. The Abhijan aims at empowering the youths of the
state with self-employment opportunities and is a significant step towards building a more
self-reliant and prosperous Assam. This holistic approach will not only benefit the
individuals, but also will contribute to the overall socio-economic development of the state,
creating a brighter future for all its residents.
Under the scheme financial assistance is proposed to be provided as indicated
below:
Educational qualification of the Quantum of Quantum of interest Total financial
applicant subsidy free loan assistance
Minimum qualification: Rs.50000.00 Rs.50000.00 in the Rs.200000.00
For general categories: in first year 1st year
Matriculate
For ST/SC/ OBC: Up to Class-X Rs.50000.00 Rs.50000.00 in 2nd
ITI, Polytechnic, Diploma in other in 2nd year year
technical courses, post graduates
from recognized universities/
institutes
Degree holders in professional Rs.125000.00 Rs.125000.00 in Rs.500000.00
courses like Engineering, MBBS, in first year first year
BDS, Veterinary, fisheries,
agriculture, CA etc. Rs.125000.00 Rs.125000.00 in
in 2nd year 2nd year

Out of the total project cost, amount other than the govt. assistance will be financed
through Bank. Loan under the scheme will be covered under the CGTMSE and Assam
Credit Guarantee Scheme.

2. Introduction about the Project:

Vermicompost is a nutrient-rich fertilizer that improves soil fertility, structure and
water retention. It also helps to suppress plant diseases and pests. Vermicompost is known
to be the world's best fertilizer. Vermicomposting is a method of preparing enriched compost
with the use of earthworms. It is one of the easiest methods to recycle agricultural wastes
and to produce quality compost. Earthworms consume biomass and excrete it in digested
form called worm casts. Worm casts are popularly called as Black gold. The casts are rich in
nutrients, growth promoting substances, beneficial soil micro flora and having properties of
inhibiting pathogenic microbes. Vermicompost is stable, fine granular organic manure, which
enriches soil quality by improving its physicochemical and biological properties. It is highly
useful in raising seedlings and for crop production. Vermicompost is becoming popular as a
major component of organic farming system. Using Vermicompost can fulfill the
requirements for organically grown products.

3. Potential of the Sector:

The vermicompost market is growing rapidly, as farmers are looking for sustainable
and affordable ways to improve their crop yields. Vermicompost has been emerging as an
important source in supplementing and substituting chemical fertilizers in agriculture.
Consumers are becoming aware of the harmful effects of chemical fertilizers and pesticides
on their health and the environment. As a result, they are looking for alternative ways to
grow food, such as using organic fertilizers like vermicompost. Government has taken
initiatives for promoting organic agriculture and programs like Organic Mission have been
launched to encourage the adoption of organic farming practices. As a result, many
government departments including agriculture, forest and horticulture are purchasing
vermicompost in bulk. This is further driving the demand for vermicompost. Urbanization is
leading to a decrease in the amount of land available for agriculture. This is making it more
important to use land efficiently and sustainably. Moreover, a large no. of people have
started home gardens and rooftop gardens using good quality of vermicompost.

Overall, the vermicompost market is a promising market with high growth potential.
The increasing demand for organic and sustainable agricultural practices is driving the
growth of the market. Units that can offer high-quality products at competitive price and
provide excellent customer service are well-positioned to succeed in this market.
 4. Marketing Strategy (to be filled up by the applicant)
Name of the district :

Population of the district :

No. of farmer population (Approx) :

Percentage of farmer expected to use vermicompost :

(Approx)

Average annual requirement of vermicompost per :

farmer in the district (Approx)

No. of existing vermicompost preparation unit in the :

district with annual production capacity (Approx)

5. Process:
Process for Vermicompost preparation is as indicated below:
Vermicromposting is done by either bed or pit method. In bed method composting is done
on the pucca / kachcha floor by making bed of organic mixture while in pit method it is done
in the cemented pits.
• Vermicomposting unit should be in a cool, moist and shady site
• Cow dung and chopped dried leafy materials are mixed in the proportion of 3:
1 and are kept for partial decomposition for 15 – 20 days.
• A layer of 15-20cm of chopped dried leaves/grasses should be kept as
bedding material at the bottom of the bed.
• Red earthworm (1500-2000) should be released on the upper layer of bed.
• Water should be sprinkled with can immediately after the release of worms
• Beds should be kept moist by sprinkling of water (daily) and by covering with
gunny bags/polythene.
• Bed should be turned once after 30 days for maintaining aeration and for
proper decomposition.
• Compost gets ready in 80-90 days. The finished product is 3/4th of the raw
materials used.
 6. Financial Analysis:

COST OF PROJECT
A. Fixed Capital Investment
a. Land : Own

b. Work shed Area Sq.ft Rate in Rs. Amt. In Rs.

Construction of Assam type 150 500.00 75000.00
shed with CC flooring, brick wall
& CGI sheet roofing etc. for
processing and storage of Raw
Material & finished products
(10ftx 15ft & 10ft height)
5 nos. of Brick vermicomposting 300 150.00 45000.00
pit of size 60 Sq.ft. each (breath
3 ft, length 20 ft and depth 3 ft)

Total 120000.00
C. Machinery Qty. Rate Amount in Rs.
Manual sieves 10 500.00 5000.00
Manual Packaging & stitching
Machine 2 5000.00 10000.00
Weighing machine/scale 1 2500.00 2500.00
Water sprinkler & Hand tools
(set) 2 3500.00 7000.00
Total 24500.00

d. Preliminary & Pre-operative Cost : Rs. 5000.00

e. Furniture & Fixtures : Rs. 4000.00
f. Contingency/Others/Miscellaneous : Rs. 6794.00

Total Capital Expenditure : Rs. 160294.00

Working Capital Rs. 69706.00

(* Details provided below)
Total Cost Project : Rs. 230000.00

Means of Financing :
Govt Assistance Rs. 100000.00
Bank Finance : Rs. 130000.00
Total Rs. 230000.00

2nd trench of Govt. assistance after 1 year & third party verification Rs. 100000.00
 STATEMENT SHOWING THE REPAYMENT OF BANK LOAN:
Closing Interest @
Year Opening Balance Installment
Balance 12.00%
1st 130000.00 6000.00 124000.00 15600.00
2nd 124000.00 106000.00 18000.00 14880.00
3rd 18000.00 6000.00 12000.00 2160.00
4th 12000.00 6000.00 6000.00 1440.00
5th 6000.00 6000.00 0.00 720.00

STATEMENT SHOWING THE DEPRECIATION ON FIXED ASSETS:

WORKSHED @ 10.00%
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Opening Balance 120000 108000 97200 87480 78732
Depreciation 12000 10800 9720 8748 7873
Closing Balance 108000 97200 87480 78732 70859
EQUIPMENT @ 15.00%
Opening Balance 24500 20825 17701 15046 12789
Depreciation 3675 3124 2655 2257 1918
Closing Balance 20825 17701 15046 12789 10871
TOTAL DEPRECIATION
Work shed 12000 10800 9720 8748 7873
Equipments 3675 3124 2655 2257 1918
Total 15675 13924 12375 11005 9792

Schedule of Sales Realization :

Details of Sales
Rate Quantity (kg) Amount in Rs.
Particulars of Product
Vermicompost (KG) 20.00 24000 480000.00
Total 480000.00

Capacity Utilization of Sales

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Capacity Utilization 70% 80% 90% 90% 90%
Sales / Receipts 336000 384000 432000 432000 432000
Raw materials :
Particulars Unit Rate/unit Reqd.Unit Amount in Rs.
Decomposable organic Kg 1.00 140000 140000.00
wastes such as animal
excreta, kitchen waste, farm
residues and forest litter
Earthworm KG 2500.00 20 50000.00
Packing material Lumpsum 4000 4000.00
Total 194000.00

Wages :(as per Labour Department norms)

No. of Wages Amount in Rs.
Particulars
Worker Per Month (Per Annum)
Semi skilled workers (self) 1 0.00 0.00
Total 1 0.00

Repairs and Maintenance : Rs. 5000.00

Power and water : Rs. 2000.00
Other Overhead Expenses : Rs. 2000.00

Administrative Expenses :
Per Amount (in Rs.) per
Salary No. month annum
Manager Cum supervisor (self) 1 0.00 0.00
Total 1 0.00 0.00

Advertisement, Publicity & selling expenditure 3000.00

Other Miscellaneous Expenses 2000.00
Total 5000.00
Capacity Utilization of Manufacturing & Administrative Expenses :
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Capacity Utilization 70% 80% 90% 90% 90%
Manufacturing
Expenses
Raw materials 135800.00 162960.00 183330.00 192060.00 200790.00
Repairs & Maintenance 3500.00 4000.00 4500.00 4500.00 4500.00
Power & Fuel 1400.00 1600.00 1800.00 1800.00 1800.00
Other Overhead
Expenses 1400.00 1600.00 1800.00 1800.00 1800.00
Administrative Expenses
Advertisement, Publicity
& selling expenses 3000.00 3000.00 3000.00 3000.00 3000.00
Other Miscellaneous
Expenses 2000.00 2000.00 2000.00 2000.00 2000.00
Total: 147100.00 175160.00 196430.00 205160.00 213890.00

Assessment of Working
Capital :
Particulars Amount in Rs.
Sale 480000.00
Raw Material 194000.00
Repair & Maintenance 5000.00
Power & Fuel 2000.00
Other Overhead Expenses 2000.00
Production Cost 203000.00
Administrative Cost 5000.00
Manufacturing Cost 208000.00

Working Capital Estimate :

Element of Working
Capital No of Days Basis Amount in Rs.
Material cost 30 Material Cost 19400.00
Stock in process 60 Production Cost 40600.00
Manufacturing
Working expenses 7 Cost 4853.00
Manufacturing
Receivable by 7 Cost 4853.00

Total Working Capital Requirement Per Cycle 69706.00

Projected Profit & Loss Account :
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Sale/ Receipt ** 336000.00 403200.00 453600.00 475200.00 496800.00
336000.00 403200.00 453600.00 475200.00 496800.00
Manufacturing Expenses
Raw Material** 135800.00 162960.00 183330.00 192060.00 200790.00
Repairs & Maintenance 3500.00 4000.00 4500.00 4500.00 4500.00
Power & Fuel 1400.00 1600.00 1800.00 1800.00 1800.00
Other Overhead
Expenses 1400.00 1600.00 1800.00 1800.00 1800.00
Depreciation 15675.00 13923.75 12375.19 11004.91 9791.57
Production Cost 157775.00 184083.75 203805.19 211164.91 218681.57
Administrative Expenses
Advertisement, Publicity
& selling expenses 3000.00 3000.00 3000.00 3000.00 3000.00
Workshed Rent 0.00 0.00 0.00 0.00 0.00
Other Miscellaneous
Expenses 2000.00 2000.00 2000.00 2000.00 2000.00
Administrative Cost 5000.00 5000.00 5000.00 5000.00 5000.00
Interest on Bank credit @
12% 15600.00 14880.00 2160.00 1440.00 720.00
Bank Loan 0.00 0.00 0.00 0.00 0.00
Working Capital Loan 0.00 0.00 0.00 0.00 0.00
Cost of Sale 178375.00 203963.75 210965.19 217604.91 223681.57
Net Profit Before Tax 157625.00 199236.25 242634.81 257595.09 273118.43
Less Tax 0.00 0.00 0.00 0.00 0.00
Net Profit 157625.00 199236.25 242634.81 257595.09 273118.43

CALCULATION OF DEBT SERVICE CREDIT RATIO (D.S.C.R) :

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Net Profit 157625.00 199236.25 242634.81 257595.09 273118.43
Depreciation 15675.00 13923.75 12375.19 11004.91 9791.57
TOTAL – A 173300.00 213160.00 255010.00 268600.00 282910.00
Payments :
On Bank Loan :
Interest 15600.00 14880.00 2160.00 1440.00 720.00
Installment 6000.00 6000.00 6000.00 6000.00 6000.00
TOTAL - B 21600.00 20880.00 8160.00 7440.00 6720.00
D.S.C.R = A/B
8.02 10.21 31.25 36.10 42.10
Average D.S.C.R
 PROJECTED BALANCE SHEET :
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
LIABILITIES :
Promoters Capital 100000.00 100000.00 100000.00 100000.00 100000.00
Profit 157625.00 199236.25 242634.81 257595.09 273118.43
Bank Loan 124000.00 18000.00 12000.00 6000.00 0.00
381625.00 317236.25 354634.81 363595.09 373118.43
ASSETS :
Gross Fixed Assets : 148500.00 132825.00 118901.25 106526.06 95521.15
Less : Depreciation 15675.00 13923.75 12375.19 11004.91 9791.57
Net Fixed Assets 132825.00 118901.25 106526.06 95521.15 85729.58
Preliminary & Pre-Op.
Expenses 5000.00 3750.00 2812.50 2109.38 1582.03
Cash in Bank/Hand 248800.00 198335.00 248108.75 268073.94 287388.85
Total 381625.00 317236.25 354634.81 363595.09 373118.43

CASH FLOW STATEMENT :

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Net Profit 157625.00 199236.25 242634.81 257595.09 273118.43
Add : Depreciation 15675.00 13923.75 12375.19 11004.91 9791.57
Bank Loan 124000.00 18000.00 12000.00 6000.00 0.00
Promoters Capital 100000.00 0.00 0.00 0.00 0.00
Total 397300.00 231160.00 267010.00 274600.00 282910.00

Total Fixed Capital

Invested 160294.00
Repayment of Bank
Loan 106000.00 6000.00 6000.00 6000.00 0.00
Total 106000.00 6000.00 6000.00 6000.00 0.00

Opening Balance 0.00 291300.00 516460.00 777470.00 1046070.00

Surplus 291300.00 225160.00 261010.00 268600.00 282910.00
Closing Balance 291300.00 516460.00 777470.00 1046070.00 1328980.00
BREAK EVEN POINT AND RATIO ANALYSIS :
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Fixed Cost 20675.00 18923.75 17375.19 16004.91 14791.57
Variable Cost 157775.00 184083.75 203805.19 211164.91 218681.57
Total Cost 178450.00 203007.50 221180.38 227169.82 233473.15

Sales 336000.00 403200.00 453600.00 475200.00 496800.00

Contribution (Sales-VC) 178225.00 219116.25 249794.81 264035.09 278118.43

B.E.P in % 11.60% 8.64% 6.96% 6.06% 5.32%

Break Even Sales in Rs. 38977.70 34821.95 31551.44 28805.01 26422.03

Net Profit Ratio 46.91% 49.41% 53.49% 54.21% 54.98%

** 5% annual increase has been considered in sale price, raw material cost and wages

Signature of the Applicant