AN ANALYTICAL STUDY OF ENTREPRENEURSHIP DEVELOPMENT IN SMALL INDUSTRIES

PROJECTREPORT ON GRACEOILS 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
Introduction to the Coconut Oil Industry
Strength of Indian Coconut Industry Uses of coconut Oil Project Report on Grace Oils

Page No
1 4 6 12 25 39 40

Annexures Conclusion Bibliography

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 replantation 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 natural shampoo and other cosmetics Desirable emulsifying property No harmful effects due to reheating Can be converted into diesel fuel soaps,

 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 REPORT
OF

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 Keralas 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 coproducts 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 Anish B. Mathew :- 29 Anoop B. Mathew :- 28 Kadukanmackal (h) Kuttiyadu P.O. Kozhikkodu Anish B. Mathew :M.B.A Anoop B. Mathew :M.B.A The promoters are also partners of another family unit and named

Age

: :

Address

: : :

Educational Qualification

: :

Experience

Supriya oils and so they are experienced in this business

ANNEXURE II

DETAILS OF LAND & BUILDING

(Rs. In Lakhs)

Sl.no

Descriptio n

Unit

Qty/Rat e

Rate

Amount

1 2

Land owned Building Total

acre

3 acre

20.00 45.00 65.00

ANNEXURE III

DETAILS OF MACHINERY AND EQUIPMENTS PROPOSED

(Rs in Lakhs) Sl.No 1 2 3 4 5 Descriptions Imported Expeller 10 H.p Motor Cutter Machine Filtter Installation Charges Total Unit Nos Nos Nos Nos Qty 3 2 4 2 Rate Amount 22.30 35.00 12.00 3.00 4.02 76.32

ANNEXURE 1V

MANPOWER REQUIREMENTS AND EMPLOYMENT POTENTIAL

(Rs in Lakhs)

Sl.No
1 2 3 4

Category
Promoter

No
2

Wages/Salar y
10000/month 5000/month 250/day 150/day

Amount
2.40 2.40 7.50 90

Clerk/Accountant 4 Skilled Workers Unskilled workers 10 20

Total Of Annual Salaries And Wages

21.30

ANNEXURE V

ANNUAL INCOME GENERATION

Sl.n o
1 2

Description

Unit

Qty/Rat e

Rate

Amoun t

Coconut Oil Coconut cake Total

Kg Kg

100.16 25.00

333.00 22.73 322.73

ANNEXURE V1

ANNUAL MATERIAL CONSUMPTION

(Rs in Lakhs) Sl.N0 Production description Unit Qty Per day 1 2 Pealed coconut Dried coconut kg kg 95.00 15.00 Rate 750.00 157.00 Amount 213.75 7.16

Total

220.91

ANNEXURE V11

COST OF PRODUCT AND MEANS OF FINANCE

(Rs in Lakhs)

Sl.No 1 2 3 4 5 6 Land Building

Item

Status owned proposed proposed

Amount 20.00 45.00 76.32 1.00 1.00 50.00 193.32

Plant& Machinery Miscellaneous fixed asset Preliminary and pre operative- exp Working capital requirement Total

Sl.No 1 2 3 4

Source Term loan from bank Promoters contribution Working capital loan from bank Working capital- Promoters contribution

Amount 107.49 35.83 37.83 12.50

ANNEXURE VIII

TERM LOAN REPAYMENT SCHEDULE

Year 1 2 3 4 5 6 7

Operating Amount 107.49 92.13 76.78 61.42 46.07 30.71 15.35

Interest per Annum 12.48 10.55 8.63 6.72 4.80 2.88 0.96

Amount Repaid 15.36 15.36 15.36 15.36 15.36 15.36 15.36

Closing Amount 92.13 76.78 61.42 46.07 30.71 15.35 0.00

ANNEXURE IX

COST OF PRODUCTION AND PROFITABILITY STATEMENT

Years Sl.No
1 2

Item
Sales (1)

Cost of Production
Material Salary Incurrence Depreciatio n Repairs Power 176.72 21.30 0.60 12.13 7.63 6.00 224.39 187.77 23.43 0.65 12.13 8.40 6.60 238.98 189.98 25.77 0.70 12.13 9.23 7.26 245.08 192.19 27.06 0.70 12.13 10.16 7.99 250.23 194.40 27.04 0.70 12.13 11.17 8.78 254.25 195.50 28.41 0.75 12.13 12.29 9.66 258.75 195.50 28.41 0.80 12.13 13.52 10.10 260.46

SubTotal (2)
3 Rate & tax Administrat ive exp.

Selling And administrative Expenses

1.70 .50 2.20 1.82 .53 2.35 1.85 .55 2.47 1.88 .58 2.46 1.90 .61 2.51 1.92 .61 2.56 1.92 .67 2.59

Sub Total
(3) 4

Financial Expenses
Interest on term loan Interest on Working capital 12.48 4.88 17.36 243.95 40.05 0.20 12.02 27.84 10.55 4.88 15.43 256.75 46.61 0.20 13.98 32.43

8.63
4.88 13.51 260.99 47.21 0.20 14.16 32.85

6.72 4.88 11.60 264.28 48.76 0.20 14.63 33.93

4.80 4.88 9.68 266.43 49.84 0.20 14.95 34.69

2.88 4.88 7.76 269.07 50.43 0.20 15.13 35.10

0.96 4.88 5.84 268.89 50.61 0.20 15.18 35.23

Sub Total
(4) GrandTotal 1-(2+3+4) Operating Profit Preliminary expenses Income tax Net Profit =5-(6+7)

6 7 8 9

ANNEXURE X

CASH FLOW STATEMENT

(Rs. In lakhs)

ANNEXURE-X1

PROJECTED BALANCE SHEET

Years Liabilities Capital Reserves A Source 1. profit before interest and tax WorkingCapital 2 Depreciation 3 Promoters Bankloan MLT capital 4 Term loan Total 5 WC Loan 6 perl and pre op Assets expenses Sub Total Land B Application 1. Land Fixed assetsand building 2. Machinery and (includingBuilding) equipments Current Asset 3. Perl and pre op expenses Cash in hand 4.. Current Assets 1 48.33 2 48.33 3 4 48.33 4 127.0 5 48.33 5 161.7 6 48.33 6 196.7 7 48.33 7 232.06

48.33 1 2 3 27.84 60.26 93.11 57.21 61.84

60.16 59.32 57.99 56.25 5 3 3 37.5012.13 37.5 12.1337.5 12.13 37.5 12.13 37.5 12.13 37.5 12.13 37.5 12.13 0.00 30.71 0.00 15.35 0.00 0.00 92.1348.33 76.78 0.00 61.420.00 46.07 107.49 205.8 222.8 240.3 258.9 278.2 298.0 217.89 37.50 0 0.20 7 0.20 60.20 4 7 2 0.20 0.20 0.20 0.20
-

60.52

262.82 74.17 72.86 72.49 71.65 70.32 68.58 20.00 20.00 20.00 20.00 20.00 20.00 20.00 54.92 72.79 60.66 48.53 36.40

109.1965.00 97.06 76.32 50.00

Cash 6. Repayment at bank of Term loan Total 205.8 222.8 240.3 258.9 278.2 298.0 317.89 7. Interest on term 17.36 15.43 13.51 11.60 9.68 7.76 5.84 0 7 6 4 7 2 loan and w/c 7. Income tax 12.02 13.98 14.16 14.63 14.95 15.13 15.18 30% Sub total 238.05 44.77 43.03 41.58 39.99 38.25 36.37 Opening 24.81 54.21 84.07 114.95 146.61 178.69 Net surplus 24.81 29.40 29.83 30.91 31.66 32.08 32.21 Closing 24.81 54.21 84.04 114.95 146.61 178.69 210.90

50.00 50.00 50.00 50.00 50.00 50.00 2.00 1.80 54.21 84.04 114.95 146.61 178.6 210.90 50.00 0.00 0.00 0.00 0.00 0.00 0.00 9 1.8015.36 1.60 15.361.40 15.36 1.20 15.36 1.00 15.36 0.80 15.36 0.60 15.35

ANNEXURE XII

DEBT SERVICE COVERAGE RATIO

Sl. No 1 1 2 3 4 Profit Depreciation PreliminaryExpences Interest On term Loan 27.84 12.13 0.20 12.48 2 32.43 12.13 0.20 10.55 3 32.85 12.13 0.20 8.63 53.81 Total A 1 2 Interest on term loan Repayment of T L 52.65 12.48 15.36 27.84 1.89 (A/B) 55.31 10.55 15.36 25.91 2.13 2 8.63 15.36 23.99 2.24 5 6.72 15.36 22.08 2.40 9 4.80 15.36 20.16 2.57 5 2.88 15.36 18.24 2.76 Years 4 33.93 12.13 0.20 6.72 52.98 5 34.69 12.13 0.20 4.80 51.81 6 35 12.13 0.20 2.88 50.31

Total B Debt Service Coverage Ratio

ANNEXURE XIII

BREAK EVEN ANALYSIS

Rs. In lakhs) 1 2 3 4 5 6 284 303.36 308.20 313.04 316.27 319.50 284 303.36 308.20 313.04 316.27 319.50 176.72 187.77 189.98 192.19 194.40 6.00 6.60 7.26 7.99 8.78 21.30 23.43 25.77 27.06 27.04 195.5 9.66 28.41 7 319 319 195.5 10.10 28.41

Sales A Variable cost Raw me trials Power Employees remuneration Selling expenses B Contribution (AB) Fixed cost Establishment & Administration Repairs and maintance Depreciation Interest on loan Total Break even point

1.70 1.82 1.85 1.88 1.90 1.92 1.92 205.72 219.62 224.86 229.12 232.12 235.49 235.93 78.28 83.74 83.34 83.92 84.15 84.01 83.07 0.50 7.63 0.53 8.4 0.55 9.23 0.58
10.16

0.61 11.17

0.61 12.13

0.67 12.13

12.13 12.13 12.13 12.13 12.13 12.13 12.13 17.36 15.43 13.51 11.60 9.68 7.76 5.84 37.62 36.49 35.42 34.47 33.59 32.63 30.77 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 etchave been made.

BIBLIOGRAPHY

Vasant Desai, Himalaya Publications, Mumbai 2000 Dynamics of Entrepreneurial Development and Management

Jose Paul, N Ajith Kumar, Paul.T.Mampilly entrepreneurship Development Vasant Desai, Himalaya Publications, Mumbai Project Management Narendra. S. Bisht, Pamila. K. Sharama entrepreneurship Expectations and Experience

Dr. K.G. Chandrasekharan Nair, Dr. Jayan, Dr. James entrepreneurship Development and Management

Schumpeter J.A. The theory of Economic Development: An enquiry into profits, Capital, Credit, Interest, and the Business Cycle. Cambridge: Harvard University Press, 1961.