PROJECT REPORT

OF

COLORED CAPSICUM POLY-HOUSE

MR. VAMAN KRUSHNA SHIKHARE

-: PREPARED BY :-

SHREYANS TEJPAL SHAH

CHARTERED ACCOUNTANTS

“KSHITI”, 127/2, ROCKEL LANE,

VAKHARBHAG, SANGLI

TEL: (0233) 2623625, 2622536

 HIGHLIGHTS OF THE PROJECT

1. Name of the proprietor : MR. VAMAN KRUSHNA SHIKHARE

2. Proposed Location : Gat No. 564 B, A/p. Burli, Tal. Palus, Dist. Sangli

3. Constitution : Proprietorship

4. Nature of Activity : Poly-house of Coloured Capsicum

5. Area : 1008 Sq. Mtrs.

6. Status : Land is own and in possession

7. Cost of Project : ₹ 11.50 Lacs

8. Means of Finance : Capital ₹ 2.30 Lacs

Bank Loan ₹ 9.20 Lacs

Total ₹ 11.50 Lacs

10. Experience : Farming and Agriculture background

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah
 PROJECT PROFILE (FINANCIAL)

# Particulars Unit FIVE YEARS

1. Estimated W/C : ₹ in Lakhs 0.70

Requirements

2. Estimated Annual Turnover : ₹ in Lakhs 10.13

3. Profit After Tax (PAT) : ₹ in Lakhs 3.87

4. ROI - EBT to Capital : % 33.65

Employed

5. B.E.P. (% of Installed : % 54.97

Capacity)

6. Employment Potential : Nos. 3

7. Debt Service Coverage : Average 3.06

Ratio (DSCR)

9. Payback Period : Years 2

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah
INTRODUCTION:

Coloured capsicum (sweet pepper or bell pepper) is one of the important high
value vegetable crops cultivated in green houses and to the some extent under poly
house in milder climatic regions like Bangalore, Pune etc. It is rich in vitamin-A, C and
minerals. Capsicum cultivation is very popular in Peri-Urban production systems because
of easy access to urban markets like Bangalore, Hyderabad, and Pune etc. It is also
gaining importance in Goa state due to ready market available throughout the year. It is
sold anything between Rs.80- 150/kg depending upon the colour, quality and season etc.
Capsicum yields in open field cultivation ranges between 20-40t/ha, where as in a poly
house the yield range is from 90-100 t/ha. In addition to the quantum jump in yield, the
superior quality and substantial reduction in the use of pesticides, makes it an economic
and eco-friendly produce to grow capsicum in naturally ventilated poly houses round the
year.

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah
Varieties
Indra
Plant: Medium tall, bushy plants having Vigorous growth. Dark green leaves, dense
foliage providing fruit shelter.
Fruit: Fruit is dark green, thick-walled and glossy with average weight 170 gm, length 10-
12 cm, girth 10 cm having 3 - 4 lobes. Fruit setting starts in 50-55 days after transplanting.
Longer shelf life. Ideal for long distance transportation. High export potential.
Capsicum Hybrid: Indra

Bomby
Plant: Strong, sturdy, tall plant which requires staking. Early hybrid with good branching.
Dense foliage provides adequate fruit shelter.
Fruit: Fruit is dark green, thick walled, glossy with average weight 130-150 gm. length 10-
11 cm, diameter 10 cm having 3-4 lobes. Longer shelf life. Ideal for long distance
transportation.

Orobelle
Plant: Orobelle is a blocky F 1 hybrid turning from green to yellow at maturity. It sets well
under cold conditions.
Fruit: Fruits are blocky; almost square (10 x 9 cm) with a medium-thick wall.
Average fruit weight is 150. With its many resistances it is a good choice for growing in
the open field, in greenhouses or under plastic under all circumstances.

Capsicum I-hybrid- Orobelle / Swarna

Plant: Strong and vigorous plants
Fruit: Blocky to long fruit with thick and firm wall, attractive dark green colour, quickly
turning to the bright yellow.
Fruit weight: 200-250gms. Suitable for green house, tunnel and open field cultivation

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah
Climatic Requirement:
Name of crop Day (0C) Night (0C) Humidity (%) Light intensity (Lux)
Capsicum 21-28 18-20 60-65 50000-60000

In case of capsicum either seeds (20 Gms) for 1008 sq. m. should be procured for
making seedling at site or seedling should be purchased from the nurseries.

Selection of planting material for capsicum cultivation:

1) The planting material should be healthy, resistant to diseases & pests.

2) Age of the seedling should be 35 to 40 days old.
3) Height of the seedling should be 16 – 20 cm.
4) Plant should possess good rooting system.
5) Seedling should have at least 4 – 6 leaves on the stem at the time of plantation.

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah
 Other characteristics like fruit shape, fruit colour, production, fruit quality and
vigour should also be considered while selecting plant material of good variety of
capsicum.

Steps in plantation of Capsicum:

1. Pebbles, clods etc. should be removed from bed surface.
2. Adequate moisture must be available in the soil at the time of plantation.
3. The seedlings should be dipped in Bavistin (0.2 %) solution at the time of plantation.
4. Plantation to be done by making holes or trenches on bed in a zigzag method.
5. Planting should be avoided during the hottest period of the day/year & should
normally be done during morning hours or late in the evening.

Care after plantation:

After plantation, the soil around the plants must be kept humid but not soaking
wet. Irrigate the plant with hose pipe immediately after plantation. During periods with
strong sunshine or high temperature, the young plants must frequently be given an
overhead spray of water to assist establishment & reduce post planting losses. For first
three weeks the irrigation should be done only by using hose sprayer & later on irrigation
should be done by drip system.

Procedure for planting capsicum

Bed preparation:
A raised bed of red laterite soil is always preferred for plantation of capsicum or
sweet pepper. Bed should be highly porous, well drained, providing adequate aeration
for root development. The raised bed of capsicum plantation should have following
dimensions.

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah
Fig. Bed preparation for Capsicum

Plantation:

The bed should be irrigated with water and kept wet at the time of plantation.
Capsicum seedling should be sown in two rows on the raised beds. Plantation of
capsicum can also be done on raised bed with plastic mulch in order to save water and
checked the growths of weeds.

Planting method:

Two rows of Capsicum seedlings are planted in a zigzag method on the bed.

Planting distance:

Plant to Plant distance: 40 cm

Row to Row distance: 50 cm

Fungicides drenching schedule: -

Sr. No. Fungicide Dose Time of drenching
1 Bavistin 1 g/litre Immediately after plantation
2 M – 45 1 g/litre 3 days after plantation
3 Bavistin 1.5 g/litre 7 days after plantation
4 M – 45 1.5 g/litre 10 days after plantation
5 Bavistin 2 g/litre 14 days after plantation
6 M – 45 2 g/litre 17 days after plantation

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah
Quantity of water 50 ml/plants to be used while drenching.

Fig: Plantation of Capsicum seedlings on mulch bed

Cultural practices:

Capsicum is a nine months to one year crop and production starts after 60 to 75
days from the date of plantation. The different cultural practices to be carried out are as
below:

Crop support:

Some varieties are very vigorous & plant can become as tall as 3.5 m and they
produce about 4 - 5 kg fruits on one plant in their life cycle. As stems are weak, they need
support system. Plant stem after transplantation is tied by a high density plastic or nylon
string. Twines are vertical ropes that are tied to horizontal wires on the ceiling at one
end and to the crop at another end. Twines of good quality are used to hang from
horizontal wires at least 3 m above the ground. Horizontal wire used should not have
thickness less than 12 gauge, as it supports the weight of all plants in the row. If the wire
is weak it will break and lead to losses. Three rows of overhead horizontal wires are
required for one bed and for each single plant four numbers of twines are required.

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah
Fig: Support system in capsicum crop

Topping:

The growing point at the top of the plant are removed. This operation is called
topping. This technique is adopted for producing more branches. This is practiced after
one month period from transplantation. After topping two or four main leaders are kept
whereas the lateral shoots are pinched first leaf (internodes) or second leaf (internodes).
One or two fruits per side shoot are maintained.

Systems of training in capsicum cultivation:

Generally two system of training are practiced in capsicum cultivation.

Two – leader system of training: In this system of training two main shoots are
maintained as two leaders after topping. Side shoots are pinched after one or two pairs
of leaves; generally one fruit is kept per side shoot.

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah
 Fig. Two - leader system

Four - leader system: In this system of training four main shoots are maintained as four
leaders after topping. Side shoots are pinched after one or two pairs of leaves; generally
one fruit is kept per side shoot.

Fruit thinning:

When there are too many fruits on the plant, it is necessary to remove some fruits,
to promote the development of remaining fruits. This operation is called as fruit

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah
thinning. Fruit thinning is done when the fruit is of pea size. This practice is normally
followed to increase the size of fruit thus by increasing the quality of production.

Fig. Flowering and fruit formation in Capsicum

Pollination:

Capsicum are self-pollinating but there is high degree of cross pollination because
of honey bees, thrips and other insects who transfer pollen from blossom to blossom.
Pollination is not improved by using an “electric bees” or by spraying plant hormones but
pollination is clearly better when honey bees or bumble bees fly in the green house. Bees
increase the number of seeds in capsicum fruits.
Maturity indices:

Harvesting of capsicum is done at green, breaker and coloured (red/ yellow etc.)
stage. It depends upon the purpose for which it is grown and distance for the ultimate
market. In India fruits are harvested at breaker stage for long distant markets. For local
market, it is better to harvest coloured stage. Breaker stage is the one when 10% of the
fruit surface is coloured and when more than 90% of the fruit surface is coloured it is
considered as coloured stage.

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah
 Harvesting: Harvesting starts after 60 to 75 days after transplanting & should be done
with the help of sharp knife. Harvesting at the proper stage of maturity, careful and
minimal handling of the produce will help in maintaining better fruit quality and reduce
storage losses. Harvesting is generally done during morning and evening hours. Avoid
harvesting immediately after fogging to check the disease and pest under control and to
maintain better keeping quality of fruit. Generally, the yield of capsicum is 8 to 10 kg/
m2. Harvesting of capsicum is done by skilled worker in green house and kept in plastic
containers and send to the packaging hall.

Post-harvest:
Cleaning and Grading:

All damaged, malformed and bruised capsicums should be removed. Those

with dirt adhering to their surface can be cleaned by wiping the surface with a moist
soft cloth. The capsicums should be graded into same size and colour lots according to
market requirements.

Sorting:

Sorting is done on the basis of shape and weight of capsicum.

Packing:
Capsicum is packed in cartons and should hold about 10 kg or 12 kg of capsicum.
Mostly farmers use apple boxes (used ones) for packaging capsicum for local market.
An ideal corrugated boxes carries following in formation.
§ On top side of the lid “Fresh vegetables” is printed.
§ On width wise side of the lid “Variety, number of capsicums, gross and net weight of box,
box number is written on both sides.
§ On length wise side of the lid “Fresh vegetable and handle with care is written on both
sides.”
§ Senders and buyers address with phone number.

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah
Storage:
Capsicums can be stored in a cool room at a temperature of 7–10 °C for up to 3
weeks if required.

Post-harvest operation in Capsicum:

Grading of Capsicum

Packaging of capsicums in boxes Polythene packaging of single Capsicum

Capsicums packed in a collapsible plastic crate (for Domestic Market)

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah
Well-graded capsicum packing (For Domestic Market)

Display of coloured Capsicums

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah
 PROJECT REPORT OF CAPSICUM POLY HOUSE

MR. VAMAN KRUSHNA SHIKHARE

COST OF PROJECT :
₹ In Lacs

Land & Development Own

Building (Poly House & Other) 9.48

(1008 Sq. Mtrs. X ₹ 940 / Sq. Mtrs.)
(the rate per sq. mtrs. Is all inclusive with the structure,
irrigation, drip system, plantation & Soil Exps.)

Plantation & Preparatory Expenses 1.32

Working Capital 0.70

11.50

MEANS OF FINANCE :

Equity Share Capital 20.00% 2.30

Bank Term Loan 80.00% 9.20

11.50

REQUIREMENT OF WORKING CAPITAL

15 Days Raw Material Required 0.14

15 Days Stock in Process 0.14

15 Days Receivables 0.42

0.70

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah
DEPRECIATION :
₹ In Lacs

Building 0% 0.00

Machinery 20% 1.90

1.90

Capacity of Yield :-

Yield Every Year = 60 Tons / Acre

= 15 Tons

Material Input
Total ₹ Lacs

Water 0.10

Pesticides & Insecticides 0.20

Fertilizers 0.25

Cost of Raw Material 0.55

Packing Material
Tons Cost / Ton Total ₹ Lacs

Packing Cost 15.00 3000.00 0.45

0.45

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah
SALES
Tons ₹ / Ton Value (₹ Lacs)

Colored Capsicum - Prime 11.25 75000.00 8.44

Colored Capsicum - Secondary 3.75 45000.00 1.69

10.13

LABOUR Nos. Salary / month Month Total Rs. Lacs

Workers - Unskilled 3 5500.00 12 1.98

1.98

POWER

Lord Required 2.00 KW

LoadConnected 2.00 KW

Maximum Demand 2.00 KW

Consumption per day 12.80 Units

Consumption Per Year 3840.00

Total Cost @ ₹ 7.10 0.27 ₹ Lacs

INTEREST :

Bank Term Loan @ 12.00% 1.10

1.10

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah
 PROFITABILITY STATEMENTS

Particulars ₹ In Lacs

Sales 10.13

Less :- Raw Material 0.55

Labour 1.98

Power 0.27

Packing Material & Expenses 0.45

3.25 3.25

6.87

Less : Interest 1.10

Deperciation 1.90

3.00 3.00

Net Profit Bef. Tax 3.87

Less :- Income Tax @ 0% 0.00

Net Profit After I. Tax Prov. 3.87

Add :Depreciation 1.90

CASH ACCRUALS 5.77

Loan Repayment 1.84

D.S.C.R. 2.33

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah
 BREAK EVEN POINT ANALYSIS

₹ In Lacs

I II III IV V

Fixed Costs

Depreciation 1.90 1.52 1.21 0.97 0.78

Interest on term loan 1.10 0.88 0.66 0.44 0.22

Wages / Salaries : Fixed : 80 % 1.58 1.63 1.79 1.84 2.01

Utilities : Fixed : 20 % 0.14 0.15 0.16 0.16 0.17

4.73 4.18 3.82 3.41 3.17

Variable Costs

Raw Material 0.55 0.57 0.62 0.64 0.70

Salaries & Wages : Variable : 20% 0.40 0.41 0.45 0.46 0.50

Utilities : Variable : 80% 0.58 0.58 0.63 0.64 0.68

1.52 1.56 1.69 1.73 1.88

Contribution 8.60 8.77 9.50 9.68 10.45

P/V ratio (contribution to sales) 0.85 0.85 0.85 0.85 0.85

Break even sales Rs.Lacs 5.57 4.92 4.50 4.02 3.74

Break Even % 54.97% 47.64% 40.20% 35.22% 30.36%

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah
 PROFITABLITY STATEMENT

₹ In Lacs

PARTICUALRS I II III IV V

Utilization % 80% 80% 85% 85% 90%

Sales 10.13 10.33 11.19 11.42 12.33

Less- Direct Expenditures

- Raw Material 0.55 0.57 0.62 0.64 0.70

- Labour 1.98 2.04 2.23 2.30 2.51

- Power 0.27 0.28 0.31 0.32 0.35

- Packing Material 0.45 0.45 0.48 0.48 0.51

3.25 3.34 3.64 3.73 4.05

Gross Profit 6.87 6.99 7.56 7.68 8.27

Less- Indirect Expenditure :

- Interest on T.L. 1.10 0.88 0.66 0.44 0.22

- Depreciation 1.90 1.52 1.21 0.97 0.78

3.00 2.40 1.88 1.41 1.00

Net Profit Before I. Tax 3.87 4.59 5.68 6.27 7.28

Less- I. Tax Provision 0.00 0.00 0.00 0.00 0.00

Net Profit After I. Tax prov. 3.87 4.59 5.68 6.27 7.28

Add- Depreciation 1.90 1.52 1.21 0.97 0.78

Cash Accruals 5.77 6.11 6.89 7.24 8.05

Loan Repayment 1.84 1.84 1.84 1.84 1.84

D.S.C.R. 2.33 2.57 3.02 3.37 4.02

Average D.S.C.R. 3.06

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah
 CASH FLOW & FUND FLOW STATEMENT

₹ In Lacs

I II III IV V

Sources of Funds

Cash Accruals 5.77 6.11 6.89 7.24 8.05

Increas in Capital 2.30 0.00 0.00 0.00 0.00

Increase in Term Loan 9.20 0.00 0.00 0.00 0.00

Increase in Bank Borrowing 0.00 0.00 0.00 0.00 0.00

Increase in U/S Loan 0.00 0.00 0.00 0.00 0.00

Others - Import L/c 0.00 0.00 0.00 0.00 0.00

Total Application (A) 17.27 6.11 6.89 7.24 8.05

Dispossion of Funds

Pre-op Expenses 0.00 0.00 0.00 0.00 0.00

Increase in Capital Expenditure 10.80 0.00 0.00 0.00 0.00

Decrease in Term Loan 1.84 1.84 1.84 1.84 1.84

Decrease in Unsecured loan 0.00 0.00 0.00 0.00 0.00

Withdrawls by Proprietor 3.00 3.60 3.60 4.20 4.20

Taxation 0.00 0.00 0.00 0.00 0.00

Increase in Working Capital 0.70 0.75 0.75 0.75 0.75

Others (specify) 0.00 0.00 0.00 0.00 0.00

Total Dispossion (B) 16.34 6.19 6.19 6.79 6.79

Opening Balance 0.00 0.93 0.85 1.55 2.00

Net Surplus (A-B) 0.93 -0.08 0.70 0.45 1.26

Closing Balance 0.93 0.85 1.55 2.00 3.27

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah
 PROJECTED BALANCE-SHEET

₹ In Lacs

I II III IV V
Liabilities

Capital 2.30 2.30 2.30 2.30 2.30

Reserve & Surplus 3.87 5.46 7.54 10.22 13.29

Less: Withdrawls 3.00 3.60 3.60 4.20 4.20

Capital in Business 3.17 4.16 6.24 8.31 11.39

Term Loans 7.36 5.52 3.68 1.84 0.00

Bank Borrowing for W.C. 0.00 0.00 0.00 0.00 0.00

Other Liabilities (specify) 0.00 0.00 0.00 0.00 0.00

Total 10.53 9.68 9.92 10.15 11.39

Assets :

Gross Block 11.50 11.50 11.50 11.50 11.50

Depreciation 1.90 3.41 4.63 5.60 6.37

Net Block 9.60 8.08 6.87 5.90 5.12

Capital WIP 0.00 0.00 0.00 0.00 0.00

Current Assets 0.70 1.45 2.20 2.95 3.70

Cash & Bank balance 0.93 0.85 1.55 2.00 3.27

11.23 10.38 10.62 10.85 12.09

-0.70 -0.70 -0.70 -0.70 -0.70

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah
 INTEREST SCHEDULE

₹ In Lacs

PARTICULARS TERM LOAN INTEREST

12%
BALANCE 9.20

[-] Ist Yr. Installment 1.84 1.10

BALANCE 7.36

[-] IIst Yr. Installment 1.84 0.88

BALANCE 5.52

[-] IIIrd Yr. Installment 1.84 0.66

BALANCE 3.68

[-] IVth Yr. Installment 1.84 0.44

BALANCE 1.84

[-] Vth Yr. Installment 1.84 0.22

BALANCE 0.00

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah
 DEPRECIATION SCHEDULE

₹ In Lacs

PATICULARS Building Machinery Total Depre.

0% 20%

OP.BALANCE 0.00 9.48

[-] Ist YR. Depr. 0.00 1.90 1.90

W.D.V. 0.00 7.58

[-] IInd Yr. Depr. 0.00 1.52 1.52

W.D.V. 0.00 6.07

[-] IIIrd YR. Depr. 0.00 1.21 1.21

W.D.V. 0.00 4.85

[-] IVnd Yr. Depr. 0.00 0.97 0.97

WDV 0.00 3.88

[-] Vnd Yr. Depr. 0.00 0.78 0.78

WDV 0.00 3.11

Project Report of Mr. Vaman Krushna Shikhare, prepared by CA Shreyans Tejpal Shah