Project Report on Seed production

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 INTRODUCTION

The products of the unit are polished and graded Pea, Onion, Palak, Muskmelon,
Mustard, and Toria. The installed capacity of the unit is 1.5 tons per Hours of graded
seeds.
The demand of the seeds would be increase every season because processed, packed
seeds are being used for cultivation at farmer field. The promoter of the unit has
already involved for seed production, processing and marketing of seeds throughout
the region since long back through the farmer, retailer, and distributor of the area.

Considering the viability of the project and the benefit accruing from it, it is felt that it
deserves encouragement and support from all concerned departments and financial
institutions.
PRODUCT & ITS MARKET POTENTIAL
The proposed seed business unit is a basically unit of seed industry. The products of
the unit are to be produced at farmer field and raw produce by back at godown for
processing, storage and relevant testing and packing before marketing to the farmers
through dealer distributor network throughout the area. The following crops
seasonally are to be taken as seeds of Pea, Onion, Palak, Muskmelon Torea, Mustard
etc. that to be meat out the requirements of farmers and vegetable crop to be used
commercial and domestic purpose. These items are also being supply seasonally in
the market, mandies and retailers to meet out the customer needs as commercial and
domestic purpose.

Further the proposed business unit products can be consider by the state Govt. time
to time for fulfillment the demand of farmers at different location throughout the
state as subsidiary schemes for crop rotation purpose at farmer field level.

The promoter of the unit has done market survey and observe the demand of related
seeds then decide to supply the quality seeds in the market for the benefit of farmer,
seed supplies are to be made in the state of Haryana, Punjab, Rajasthan, Madhya
Pradesh and Uttar Pradesh. The findings of the market survey level that quality seeds
supply to the farmers at timely and on affordable rates in comparison of market
scenario.

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 SALIENT FEATURES OF THE PROJECT
Land & Building
The proposed unit will be established at Vill- Beerpura, Teh - Dadri, Dist- Gauram
Buddha Nagar (U.P.), Pin-203207. The available total area of land and building will be
sufficient for the unit.
Plant & Machinery
Selection of plant and machinery will be according to the capacity and size of the unit.
The various plant and machinery required by the unit are Sealing Machine, Grading
Fan, Weighing Machine, Clip Packing Machine, Color Coating Machine, Thread Cealing
Machine Grader Weighing balance, electric motors of different HP and other
accessories. The cost of different items of plant and machinery have been taken on
the basis of quotation received from the some of the manufacturers and suppliers.
Provision has also been made for taxes, insurance, freight charges, packaging charges
and also electrification charges. The cost of the plant and machineries have been
estimated at Rs. 3.00 lakh.
Selection of plant and machinery will be according to the capacity and size of the unit.
The cost of different items of plant and machinery have been taken on the basis of
quotation received from the some of the manufacturers and suppliers. Provision has
also been made for taxes, insurance, freight charges, packaging and also
electrification charges. The cost of plant & machineries has been estimated at Rs. 3.00
lakh.
Working Capital
The working capital has been worked out in Annexure F.I on the basis of requirement
of raw materials, power, water, work in process, receivables, finished goods and
working expenditures for single cycle. The total working capital requirement in the
first year for single cycle is estimated at Rs.22.00 lakh and has been added to the cost
of the project.
Pre-operative & Contingencies Expenses
A provision has been made to care of price escalation in machinery/equipments and
building materials items, which can take place during the implementation period.
Suitable provision for pre-operative expenses consisting of technical know how fees,
expenses during mortgage deed, interest during civil construction/site development
period, traveling expenses, consultancy fee, loan processing fee, MPSEB deposit for
power connection of 5 HP load, Telephone deposit and other Govt. deposits have

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 been made. The total pre-operative & contingencies expenses has been estimated at
Rs. 0.50 lakh.
Raw Materials
The main raw material required by the unit are raw Pea, Onion and Mustard and
packaging material, which are easily available in the local market at reasonable
rates in bulk quantity.
Labour & Infrastructure
Suitable skilled and unskilled labour is easily available in the proposed site. Other
infrastructure facilities like power, water, approach road and transportation etc. exist
in the site.

MEANS OF FINANCE

PARTICULARS EXISTING PROPOSED AMOUNT

1. Own Capital 0.00 500,000.00 500,000.00
2. Current Liabilities 0.00 0.00 0.00
3. Term Loan 0.00 2,000,000.00 2,000,000.00
0.00 2,500,000.00 2,500,000.00

The total project cost arrived at Rs. 25.00 lakh is proposed to be financed as per the
following finance mix under the ACABC Scheme of Central Government:

1 EQUITY (Rs. in Lakhs)

Promoter’s Contribution for TL (20%) 5.00

Total 5.00
2. DEBT
Term Loan from Bank 20.00
Subsidy Available @ 36 % 7.20

GRAND TOTAL 25.00

The above finance mix is based on the following assumptions:

 The entrepreneur shall bring 20 % of the project cost as his contribution for
term loan, which comes out to be Rs. 5.00 lakhs, free subsidy from NABARD
under ACABC scheme (Rs. 7.20 lakhs for term loan).

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 COST PRICE OF ITEMS ANNUALLY

NAME OF ITEM Qty in Qtls Rate / kg AMOUNT IN RS

1.Pea 200 55 1100000
2.Onion 10 620 620000
3.Palak 50 50 250000
4.Muskmelon 0.75 270 20250
5.Toria 30 45 135000
6.Mustard 140 60 840000

Total 2965250

* Average Rate includes cost of transportation & packing.

SALES REALIZATION ANNUALLY

NAME OF ITEM Qty in Qtls Rate / kg AMOUNT IN RS

1.Pea 200 73.3 1466000
2.Onion 10 1200 1200000
3.Palak 50 70 350000
4.Muskmelon 0.75 500 37500
5.Toria 30 65 195000
6.Mustard 140 92.5 1295000
4543500
S.No Term loan Requirement AMOUNT
1 Sealing Machine 3000.00
2 Grading Fan 2000.00
3 Weighing Machine 4000.00
4 Clip Packing Machine 600.00
5 Tape Packing Machine 600.00
6 Color Coating Machine 20000.00
7 Thread Ceiling Machine 1500.00
8 Wooden Crate 56000.00
9 Grader Machine 212300.00
Total 300000.00

10 Working Capital 2200000.00

Total 2500000.00

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 SATFF SALARY NO SALARY PER MONTH AMOUNT
1. Supervisor 1 12000 12,000.00
2. Labour 2 20000 40,000.00
3. Sale Man 1 12000 12,000.00
Total 52,000.00

Salary per year 624,000.00

Other Expenses (Per month) AMOUNT

1. Loading & Unloading Expenses 4,000.00
2.Transportation Exp 5,000.00
3. Telephone 3,000.00
4.Conveyance Exp 3,000.00
5. Entertainment Exp 2,000.00
6.Miscellaneous Exp 1,000.00

Total 18,000.00

Expenses per year 216,000.00

PROJECTED PROFITABILITY STATEMENT

(Figures in Lakh")
ITEM (A) 1Year 2 Year 3 Year 4 Year 5 Year 6 Year

SALES 45.44 49.98 54.98 59.10 63.53 68.30

Total 45.44 49.98 54.98 59.10 63.53 68.30

B. EXPENDITURE

cost of Items 29.65 32.62 35.88 39.47 43.41 47.76

Staff Salary & Labour Exp. 6.24 6.24 6.86 7.55 8.31 9.14
Other Expenses 2.16 2.16 2.38 2.61 2.87 3.16
Interest on Term Loan 0.59 2.06 1.56 1.06 0.56 0.09
Depreciation 0.45 0.38 0.33 0.28 0.23 0.20
Total 39.10 43.46 47.01 50.97 55.39 60.35

Profit (A-B) 6.34 6.52 7.97 8.13 8.14 7.95

Income Tax 1.90 1.95 2.39 2.44 2.44 2.38
Profit after Tax 4.44 4.56 5.58 5.69 5.70 5.56

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 PROJECTED BALANCE SHEET

(Figures in Lakh")
PARTICULARS 1Year 2 Year 3 Year 4 Year 5 Year 6 Year

LIABILITIES
Capital 0.00 8.44 12.00 16.58 21.27 25.97
Add : Addition 5.00 0.00 0.00 0.00 0.00 0.00
Add : Profit after tax 4.44 4.56 5.58 5.69 5.70 5.56
9.44 13.00 17.58 22.27 26.97 31.53
Less : Drawing 1.00 1.00 1.00 1.00 1.00 1.00
8.44 12.00 16.58 21.27 25.97 30.53

LOAN LIABILITIES

Term Loan 20.00 20.00 20.00 20.00 20.00 20.00

Creditor 5.00 5.50 6.05 6.66 7.32 8.05
33.44 37.50 42.63 47.92 53.29 58.58

ASSETS
Fixed Assets 2.55 2.17 1.84 1.57 1.33 1.13
(Less Depreciation)

CURRENT ASSETS
Stocks 6.00 6.60 9.00 9.63 10.30 11.03
Debtors 8.00 8.80 9.68 15.00 20.00 28.00
Cash & Bank Balance 16.89 19.93 22.10 21.73 21.65 18.43

33.44 37.50 42.63 47.92 53.29 58.58

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 COMPUTATION OF DEPRECIATION ON W.D.V. METHOD.

YEARS EQUIPMENTS TOTAL

15%

1 Year 3.00 3.00

Less : Dep 0.45 0.45

2 Year 2.55 2.55

Less : Dep 0.38 0.38

3 Year 2.17 2.17

Less : Dep 0.33 0.33

4 Year 1.84 1.84

Less : Dep 0.28 0.28

5 Year 1.57 1.57

Less : Dep 0.23 0.23

6 Year 1.33 1.33

Less : Dep 0.20 0.20

7 Year 1.13 1.13

Less : Dep 0.17 0.17

PROJECTED FUND FLOW STATEMENT

Figures (Rs. in Lakh)

PARTICULARS 1Year 2 Year 3 Year 4 Year 5 Year 6 Year

SOURCE OF FUND
Contribution 5.00 0.00 0.00 0.00 0.00 0.00
Net Profit 4.44 4.56 5.58 5.69 5.70 5.56
Term Loan 20.00 0.00 0.00 0.00 0.00 0.00
Depreciation 0.45 0.38 0.33 0.28 0.23 0.20
Creditor 5.00 0.50 0.55 0.61 0.67 0.73
34.89 5.44 6.45 6.57 6.60 6.50

APPLICATION OF FUNDS
Increase in fixed assets 3.00 0.00 0.00 0.00 0.00 0.00
Increase in Stocks 6.00 0.60 2.40 0.63 0.67 0.72
Debtors 8.00 0.80 0.88 5.32 5.00 8.00
Drawing 1.00 1.00 1.00 1.00 1.00 1.00
18.00 2.40 4.28 6.95 6.67 9.72

Opening Balance 0.00 16.89 19.93 22.10 21.73 21.65

Cash Surplus/ Deficit 16.89 3.04 2.17 -0.38 -0.08 -3.22
16.89 19.93 22.10 21.73 21.65 18.43

Closing Balance 16.89 19.93 22.10 21.73 21.65 18.43

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 PROJECTED DEBT SERVICE COVERAGE RATIO STATEMENT

(Figures in
'lakh)
PARTICULARS 1Year 2 Year 3 Year 4 Year 5 Year 6 Year

SOURCES OF FUND

Net Profit 4.44 4.56 5.58 5.69 5.70 5.56

Depreciation 0.45 0.38 0.33 0.28 0.23 0.20
Interest on T/Loan 0.59 2.06 1.56 1.06 0.56 0.09

TOTAL 5.48 7.01 7.47 7.03 6.50 5.86

DEBTS TO SERVICE

Repayment of Loan 1.00 4.00 4.00 4.00 4.00 3.00

Interest on Loan 0.59 2.06 1.56 1.06 0.56 0.09

TOTAL 1.59 6.06 5.56 5.06 4.56 3.09

DSCR 3.44 1.16 1.34 1.39 1.42 1.89

Average DSCR 1.29

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 PROJECTED INTEREST CALCULATION & REPAYMENT SCHEDULE

INTEREST ON TERM LOAN (Rs. In 'Lakh')

YEARS QTRS. OPENING REPAYMENT BALANCE QUARTER YEARLY INT.

INTEREST @ 12.5%

1 1st 0.00 0.00 0.00 0.00

2nd 0.00 0.00 0.00 0.00
3nd 0.00 0.00 0.00 0.00
4th 20.00 1.00 1.00 19.00 0.59 0.59

2 1st 19.00 1.00 18.00 0.56

2nd 18.00 1.00 17.00 0.53
3rd 17.00 1.00 16.00 0.50
4th 16.00 1.00 4.00 15.00 0.47 2.06

3 1st 15.00 1.00 14.00 0.44

2nd 14.00 1.00 13.00 0.41
3rd 13.00 1.00 12.00 0.38
4th 12.00 1.00 4.00 11.00 0.34 1.56

4 1st 11.00 1.00 10.00 0.31

2nd 10.00 1.00 9.00 0.28
3rd 9.00 1.00 8.00 0.25
4th 8.00 1.00 4.00 7.00 0.22 1.06

5 1st 7.00 1.00 6.00 0.19

2nd 6.00 1.00 5.00 0.16
3rd 5.00 1.00 4.00 0.13
4th 4.00 1.00 4.00 3.00 0.09 0.56

6 1st 3.00 1.00 2.00 0.06

2nd 2.00 1.00 1.00 0.03
3rd 1.00 1.00 3.00 0.00 0.00 0.09

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