PROJECT AT A GLANCE

1. NAME OF THE UNIT :M/S CITY FOOD PRODUCT

2. ADDRESS : Parangipete
Mangalore
Mangalore-574219

3. NAME OF THE PROPRIETOR : MR.IRSHAD

4. ADDRESS S/o Hameed
Grama Chavadi
Pajeer
Bantwal
6.QUALIFICATION : Metric
7. CONSTITUTION : Proprietorship
8. NATURE OF THE UNIT : Food Processing Unit

9. TYPE OF UNIT : Manufacturer of Food

10. COST OF THE PROJECT : Machinery Rs.31,70,000.00

: Working Capital Rs. 3,00,000.00
Total Rs.34,70,000.00
11. MEANS OF FINANCE :Term Loan Rs.30,11,500.00
Working Capital Loan Rs. 2,85,000.00
Own Contribution Rs. 1,73,500.00
Total Rs 34,70,000.00
12. TERM OF LOAN REPAYMENT :84 monthly installments of Rs.51555.00
13. DSCR : 1.95:1
14. PAYBACK PERIOD : 4th Year
15. ROI AFTER TAX : 22%
16.ESTIMATED TURNOVER :65 Lakh
17.EMPLOYMENT :14
 PROJECT REPORT

INTRODUCTION

City food Products is a Chappatti & other Food making Industry with the help of
highly sophisticated digital machineries. Today we are suffering from lot of health
problems and most of them are because of non-hygienic and food adulteration
practices. So Keeping this in mind, we have started this business for serving the
public with hygenic food stuff for a better & healthy new generation. We promise that
we have no compromise on quality.
CONSTITUTION & PROMOTERS

The concern is a proprietary one, promoted by Mr.Irshad S/o Hameed aged about
33 years, Residing at Door No -10-10g Grama Chavady Pajeeru. He is very dynamic
and enthusiastic. He has got plenty of experience in this field. As an active social
worker the promoter has developed extensive contacts with the people of the region.

NATURE OF ACTIVITY

The proposed project is unique in this type of industry, because we have selected
the macheneries with high potential and most hygenic in nature.The proprietor has
decided to meet the entire demands within a short period, without compromising on
qualities.This facility will gain momentum and has significant commercial prospects
in the years to come. Since similar facilities with unique ideas are missing in Bantwal
area, this project is expected to provide more social convenience for the residents, and
has potential of becoming a commercial success. This is the compelling reason behind
planning this project.
Production Process

• Workflow Overview:
1. Raw material procurement (wheat flour, water, etc.).
2. Mixing and kneading the dough.
3. Dough resting and rolling.
 4. Cooking (using tandoors or flat pans).
5. Packaging (vacuum sealed or ready-to-eat packaging).
• Technology and Machinery: Equipment required (dough mixers, automatic
chapati machines, packaging machines).

Marketing Strategy

• Marketing channels (online platforms, grocery stores, local markets).

• Branding strategy and packaging design.
• Promotional activities (discounts, samples, collaborations with local restaurants).

RAW MATERIALS & PURCHASES

Purchase will be made from the wholesale in Mangalore in bulk to avail bulk
discounts. Purchase will be on cash basis only.

POWER & WATER

The premise will be connected by electricity & water.

LABOUR

Skilled Labour - 10 No @ Rs. 15000/-P.M

UnSkilled Labour - 4 No @ Rs. 10000/-P.M

Total 14 labour monthly wages will be Rs.1,90,000.00/- All these personnel are
available in the area
COST OF THE PROJECT

This project requires the following expenditure:

Rs in Lakhs

1. Machinery
a) Automac chapati machine: 7,90,600.00
b) Atta Maker- 15kg 76,700.00
c) AUTOMATIC NOODLEMACHINE 11,21,000.00
d) Sai Atta Mixer- 1,47,500.00
e) ARISE ENGINEERING 2,95,000.00
f) SAI DRYER AND STEAMER 1,41,600.00
g) S AI CHOPPER MACHINE 1,23,900.00
h) DEEP FREEZER 1,28,620.00
i) ZEENITH COMPRESSOR 2,89,100.00
j) MS HOT PLATE TAWA 55,980.00
31,70,000.00

2. Working Capital Rs. 3,00,000.00

TOTAL Rs 34,70,000.00

MEANS OF FINACE

The project cost will be financed as follows:

1. Bank Loan Rs 30,11,500.00
2. Working Capital Loan Rs. 2,85,000.00
3. Own Contribution Rs. 1,73,500.00
TOTAL Rs 34,70,000.00
ANNEXURE-1

PROJCETED PROFITABILITY STATEMENT FOR THE NEXT 7 YEARS (Rs In Lakhs)

( Rs In Lakhs
PARTICULARS 1 2 3 4 5 6 7

A. INCOME

Sales 65.00 68.00 75.00 82.00 88.00 95.00 110.25

Closing Stock 4.00 4.25 4.56 4.85 5.15 5.35 5.40

TOTAL 69.00 72.25 79.56 86.85 93.15 100.35 115.65

B. EXPENDITURE

Opening Stock - 4.00 4.25 4.56 4.85 5.15 5.35

Purchase 30.72 28.94 34.77 40.67 45.67 50.62 64.05
Salary & Wages 22.80 23.50 24.50 25.60 26.50 27.50 28.50
Power & Fuel 2.55 2.85 3.15 3.45 3.85 4.15 5.25
Administrative Expence 0.35 0.45 0.35 0.40 0.45 0.55 0.65
Repaire & Maintenance 2.15 2.55 2.65 2.85 3.15 3.25 3.55
Interest on term Loan 3.16 2.81 2.42 1.98 1.50 0.96 0.32
Interest on OD 0.31 0.31 0.31 0.31 0.31 0.31 0.31
Depreciation w/o 3.17 2.853 2.5677 2.31 2.08 1.87 1.68

Total 62.75 65.40 72.01 78.97 84.90 90.80 105.80

C. Net Profit Before Tax 6.25 6.85 7.55 7.88 8.25 9.55 9.85

D.Taxation - - - 0.15 0.25 0.35 0.45

E.Net Profit After Tax 6.25 6.85 7.55 7.73 8.00 9.20 9.40
ANNEXURE-2

PROJCETED CASH FLOW STAEMENT FOR THE NEXT 7 YEAR

PARTICULARS 1 2 3 4 5 6 7

A.SOURCES OF FUNDS

Promoters Contribution 1.74 - - - - - -

Term Loan & OD 32.96 - - - - - -
Net Profit Before Tax 6.25 6.85 7.55 7.88 8.25 9.55 9.85
Depreciation w/o 3.17 2.85 2.57 2.31 2.08 1.87 1.68

Total 44.12 9.70 10.12 10.19 10.33 11.42 11.53

B. APPLICATION OF FUNDS

Investment in Fixed Assets 31.70 - - - - - -

Working Capital 2.85 - - - - - -
Repayment of term loan 3.02 3.37 3.76 4.20 4.68 5.22 5.86
Interest On Term Loan 3.16 2.81 2.42 1.98 1.50 0.96 0.32
Interest On OD 0.31 0.31 0.31 0.31 0.31 0.31 0.31
Taxation - - - 0.15 0.25 0.35 0.45
Drawing 0.55 0.65 0.75 0.78 0.85 0.95 0.98

Total 41.59 7.14 7.24 7.42 7.59 7.79 7.92

C. SURPLUS 2.53 2.56 2.88 2.77 2.74 3.63 3.61

D. Opening Balance - 0.30 0.85 0.99 1.49 2.38 6.01

E. Closing Balance 0.30 0.85 3.73 3.76 4.23 6.01 4.85

ANNEXURE-3

CALCULATION OF DEPRECIATION

ASSETS 1 2 3 4 5 6 7

Machinery @cost 31.7 28.53 25.68 23.11 20.80 18.72 16.85

Depriciation @ 15 % 3.17 2.85 2.57 2.31 2.08 1.87 1.68

Total 3.17 2.85 2.57 2.31 2.08 1.87 1.68

ANNEXURE-4
DEPT SERVICE COVERAGE RATIO

PARTICULARS 1 2 3 4 5 6 7

Net Profit After Tax 6.25 6.85 7.55 7.73 8.00 9.20 9.40

Interst on Term Loan 3.16 2.81 2.42 1.98 1.50 0.96 0.32

Depreciation W/o 3.17 2.85 2.57 2.31 2.08 1.87 1.68

Total 12.58 12.51 12.54 12.02 11.58 12.03 11.40

Repayment of Term Loan 3.02 3.37 3.76 4.20 4.68 5.22 5.86

Interest on Term Loan 3.16 2.81 2.42 1.98 1.50 0.96 0.32

Total 6.18 6.18 6.18 6.18 6.18 6.18 6.18

DEBT SERVICE COVERAGE 2.04 2.02 2.03 1.95 1.87 1.95 1.85
RATIO

AVERAGE D.S.C.R 1.95:1

ANNEXURE-5
INTERST &REPAYMENT SCHEDULE

Teram Loan 30.11 Lakh @11%

Working Capital Loan 2.85 Lakh @11%

Rate of Interest 11.00%

Repayment of Terms
:Rs 51555/--*84 Months

in Lakh Rupee
A)Repayment Shedule of Term Loan

Year Payment Principal Interest Balance

30.11
1 6.18 3.02 3.16 27.09

2 6.18 3.37 2.81 23.72

3 6.18 3.76 2.42 19.96

4 6.18 4.20 1.98 15.76

5 6.18 4.68 1.50 11.08

6 6.18 5.22 0.96 5.86

7 6.18 5.86 0.32 (0.00)

B)Repayment Shedule Of Working Capital Loan

Year OD Balance Interest @11%

1 2.85 0.31

2 2.85 0.31

3 2.85 0.31

4 2.85 0.31

5 2.85 0.31

6 2.85 0.31

7 2.85 0.31
ANNEXURE-6
RETURN ON INVESTMENT

COST OF THE PROJECT Rs 34.70 Lakhs

NO.OF OPERATIVE YEAR 7Years

NET PROFIT BEFORE TAX Rs 56.18 Lakhs

NET PROFIT AFTER TAX Rs 54.98 Lakhs

INTEREST ON LOAN Rs 13.147 Lakhs

CASH IN FLOWS BEFORE TAX Rs 69.327 Lakhs

CASH IN FLOWS AFTER TAX Rs 68.127 Lakhs

RETURN ON INVESTMENT

BEFORE TAX = 56.18*100

34.70* 7

= 23.00%

AFTER TAX = 54.98*100

34.70 *7

= 22.00%
ANNEXURE-7
PROJECTED BALANCE SHEET FOR THE NEXT 6 YEARS(Rs In lakhs)

PARTICULARS 1 2 3 4 5 6 7

A. LIABILITIES:

Capital Account

Opening balance - 8.55 14.75 19.75 24.23 28.38 33.63

Amount Brought in 2.85
Net Profit for the Year 6.25 6.85 7.55 7.73 8.00 9.20 9.40
Total 9.10 15.40 22.30 27.48 32.23 37.58 43.03
Less: Drawings 0.55 0.65 2.55 3.25 3.85 3.95 4.15
Closing Balance 8.55 14.75 19.75 24.23 28.38 33.63 38.88
Term Loan From Bank 27.09 23.72 19.96 15.76 11.08 5.86 -
Working Capital Loan 2.85 2.85 2.85 2.85 2.85 2.85 2.85
TOTAL 38.49 41.32 42.56 42.84 42.31 42.34 41.73

B. ASSETS:

FIXED ASSETS
Opening Balance 28.53 25.68 23.11 20.80 18.72 16.85
Add: Additions 31.70
Less: Depreciation 3.17 2.85 2.57 2.31 2.08 1.87 1.68
Net Block 28.53 25.68 23.11 20.80 18.72 16.85 15.16

CURRENT ASSETS:
Cash&bank Balances 3.41 6.84 8.34 9.94 9.90 10.58 10.92
Debtors 2.55 4.55 6.55 7.25 8.54 9.56 10.25
Stock of Material 4.00 4.25 4.56 4.85 5.15 5.35 5.40

TOTAL 38.49 41.32 42.56 42.84 42.31 42.34 41.73

ANNEXURE-8
PAY BACK PERIOD

YEAR CASH INFLOW CUMULATIVE

1 9.42 9.42
2 9.70 19.12
3 10.12 29.24
4 10.19 39.43
5 10.33 49.76
6 11.53 61.30

Cost of the project Rs 34.70 lakhs

Since the cumulative cash inflow are more the cost of the project
In the 4th year, we can say that the back period is 4th year