Pasumai Coconut Producer Company Limited

Business Plan
for
Establishment of Cold Pressed Oil Unit
& Cattle Feed Trading
at Perumpathy Village,
Pollachi Taluk,
Coimbatore District

Submitted by
Pasumai Coconut Producer Company Limited

2019
 Table of Contents

SNo Particulars Pg. No

1 Quick Glance of the Project
2 Executive Summary
3 Objectives
4 Company Description
5 Advisors
6 Products and Services
7 Financials
 QUICK GLANCE OF THE BUSINESS PLAN

 Name of the proposed FPO Pasumai Coconut Producer Company

Limited
 Location of the farm Perumpathy village
 Area 10 Cents
 Name of the promoters Shareholders of Pasumai CPCL
 Specifications Cold Pressed Oil & Cattle Feed Trading
 Quantity of Oil 300 Liters of Coconut Oil / day
120 Liters of Groundnut Oil / Day
 Quantity of Cattle Feed 386 bags per month
 Contact Address 9/59, Perumpathi,
Zaminkaliyapuram (PO),
Pollachi (T.K) – 642 110
 Total cost of the project Rs.26,05,030
(Rs. 21,05,030 Investment Cost + Rs. 500000 as Working Capital)
 Subsidy from MSDA Rs. 900000/-
 Contribution by the shareholders Rs.5,32,000/-
 Term loan availed from Union Bank of India Rs.6,00,000/-
 Business Promotion Support requested from NABARD Rs. 5,00,000/-
 Repayment period 5 years
 Rate of interest 13.5 %
Executive Summary

Pasumai Coconut Producer Company Limited (PCPCL) is a farmer

producer company promoted by the farmers of Perumpathy village under the
guidance and leadership of Mr. T. Thiruvankatam. PCPCL seeks financial
assistance from National Bank for Agriculture and Rural Development (NABARD)
& technical support from Vanavarayar Institute of Agriculture (VIA) with 509
shareholders with agriculture land, registered under companies’ act 2013 at 9/59,
Perumpathy, Poravipalayam Village, Pollachi– 642110, with registration number

CIN – U01409TZ2016PTC027637

With Objective of
a. To carry on the business in coconut based operations, procurement,
grading, processing, packaging, marketing and export with specified
standards and best quality.
b. To provide service to the members who are primary suppliers of raw
materials and consumers of finished products.
c. To render technical services, consultancy services, training, research and
development and all other activities for the promotion of the interest of the
members.
d. To provide maximum benefit to their primary produce.
e. To provide for welfare measures or facilities for the benefit of members as
maybe decided by the Board.

Company Description

Promoters and Shareholders

National Bank for Agriculture and Rural Development (NABARD), Coconut
Development Board (CDB) and Vanavarayar Institute of Agriculture (VIA) are
promoters of Pasumai Coconut Producer Company Limited with 309 share
holders with coconut plantation of more than 2 lakh trees.

The following shall be the First Directors of the company.

Sl
Name Address Occupation
No.
9/59, Perumpathi,
1. T. Thiruvankatam Zaminkaliyapuram (Po), Farmer
Pollachi (Tk).
9/28, Perumpathi, Farmer
2. T. Govindaraj Zaminkaliyapuram (Po),
Pollachi (Tk).
1/162, Sokkanur, Farmer
3. K. Nagarathinasamy Sokkanur(Po)
Kinathukadavu (Tk).

8/123, Farmer
4. G.Jagadeeshwari Zaminkaliyapuram (Po)
Pollachi (Tk).
Sattakal pudhur, Farmer
5. Pattiyappan Kaliyathal Sokkanur (Po)
Kinathukadavu Tk

Advisors

Coconut Development Board (CDB), National Bank for Agricultural &

Rural Development (NABARD) and Vanavarayar Institute of Agriculture (VIA)
being resource institutions are monitoring and help in smooth conduct of
business.

Products and services

1. Tradition Chekku Oil:
 Chekku oil is the oil which is manufactured by the traditional method by
using the Cold Pressed chekku. The oil is not heated during the manufacturing
process, hence it contains the original nutrition and flavours. The oil prepared by
this process were the ones that gave strength, stamina and long life to our
ancestors. Pure cold-pressed oil is not refined. It is also rich in antioxidants,
which boosts immunity.

This method preserves all the natural properties of our coconut oil which
has been carefully selected from high quality coconuts, from matured trees
without using any harmful chemicals or substances. All of the coconuts used to
make our oil are grown organically in plantations from local farmlands.

As stated above Chekku coconut oil is reputed to provide a range of

nourishing benefits, especially when eaten raw and used in everyday cooking as
it is a great source of medium-chain triglycerides. When used to cook in high
temperatures, it is the only oil that stays stable and is ranked as having the
highest Smoke point (before it is damaged due to high heat). This means, this oil
is the best for all your high heat cooking needs

Method of Production

Chekku Coconut oil comes from coconuts, grown in a mature plantation

near the borders of Kerala, in Tamil Nadu, South India. It is harvested at 9 to 11
months when the coconuts are ready for picking. The coconuts are then cut from
trees using poles which are 12-15m tall. The coconuts are then transported to a
central husking area in the local village within the district and then taken into the
processing facility where they are shelled and paired to obtain the white organic
coconut meat.

The white organic coconut meat is rinsed and selected to assure that only
the best meat is used in the process and that no other materials will cause cross-
contamination. The meat is then dried at temperatures below 40˚ degrees to
maintain the freshness of the oil when pressed. After this, the dried coconut flesh
undergoes a Cold-Pressing method, also known as “Chekku”. During this
process of extraction, cold water is passed through the pressing machine to cool
down any increase in heat or temperature caused by the friction in pressing for
the oil. After all the oil is pressed, the organic coconut oil is put in settling tanks
for a minimum of 48 hrs. Finally, the organic coconut oil is filtered and filled in
food grade anti-leeching plastic drums ready for use.

Then the oil will be filled into 500 ml / 1000 ml jars using a mechanical
semi-automatic filling machine which is driven by air pressure and electricity.
After the jars are filled, each jar is checked for quality control individually,
ensuring that hygiene and quality standards are met at all times. Coconut oil is
full of awesome benefits – renowned around the world as a superfood because
of it’s unique nutritional content. The coconuts are peeled, shredded and pressed
within 10 hours of being picked from organically grown trees in the exotic fields of
Southern India.

Coconut oil contains a miracle ingredient called lauric acid – a special type
of super antibacterial fatty acid that’s also found in human breast milk. In it’s raw
and organic state, coconut oil contains the most lauric acid of any substance on
Earth.
 Flow Chart of Preparation of Chekku Coconut Oil & Groundnut Oil

Diversified usage of Coconut Oil

In this section, below is a list of some of its uses:

 Natural shaving cream – Moisturises and soothes the skin as you shave it.
 Eat Raw – to provide you with an extra boost of energy before workouts,
or if you’re feeling slightly drained. It also promotes weight loss.
 Body peel – Use our Himalayan salt with this oil and make yourself a nice
body peel.
 Hair/Scalp conditioner – Helps reduce hair-loss and thickens the hair.
 Massage oil – Can be used as a great massage oil. Can also be blended
with essential oils to provide a unique tropical aromatherapy treatment.
 Moisturising oil – A great oil to help cool hot itchy sensitive skin and to
moisturise our skin.
 Sunburn lotion – Works better than Aloe Vera with its anti-fungal,
antibacterial and anti-inflammatory properties whilst moisturising the skin
and cooling it.
 Sunscreen – Apply on your screen and enjoy the sun!
 Oil Pulling – a traditional and Ayurvedic treatment to detox and cleanse
your mouth. Best when taken first thing in the morning!
 Coffee creamer – Make a tasty and healthy coffee latte, but remember to
blend, not stir!
 Smoothie – Blend a spoon of coconut oil in your favourite smoothie for
additional health benefits.
 Lip balm – A little dip and dab of the oil on the lips could help treat
chapped lips.
 Cooking oil – One of the best oils to use for cooking!
 Polish – Polish and add a clean finish on your wooden furniture’s!
 Body deodorant – Add a dab of oil in your underarms, and if you prefer,
you may add essential oils for extra aromas!
 Breath Freshener – Use the oil to rub into your gums and gargle.
 Toothpaste – Use as a base for toothpaste by mixing with baking soda,
peppermint and a little natural sweetener.
 Body cream – Use as a base for a moisturizing cream. I mix it with Shea
butter and a few drops of essential oil blends that I like, such as Rosemary
and Ylang Ylang or Sandle wood.
 Insect repellent – Apply
 Chocolate – Make delicious artisan chocolates using coco powder, and a
natural sweetener.
  Pan Fry/Stir fry oil – Use as a lubricant to oil your pans when cooking,
instead of using those pan oil sprays.

Groundnut Oil Production Process & Technology

Basically, you can divide the edible oil technology into two groups. These
are mechanical pressing and solvent extraction. For oilseeds with high oil content
such as groundnut, you will need to apply first mechanical pressing.

Here, you can extract over 85% of the oil. However, you can extract the
remaining oil in the expeller cake with a solvent. As per mechanical pressing
technology, you can divide the groundnut oil production process into three
stages. These are seed preparation, pressing and crude oil refining.

Storage → Cleaning → Dehulling → Grinding or rolling → Heating → Pressing oil

cakes → Refining impurities → Purified Edible Oil

Production Process
1. Cleaning

The first step in preparing oil seeds for oil extraction is to clean them.
Clean properly so that the oil is not contaminated with foreign materials.
Therefore, it helps to proceed the extraction process as efficiently as possible.
During the process, carefully inspect the seeds to remove stones, sand, dirt and
spoilt seeds. Additionally, you can use dry screening technique to remove all
material that is over or undersized. Sometimes washing is also resorted to but it
must be avoided as the plant tissue will have to be dried at a later stage.

2. Dehulling

During the process, remove the outer seed coat of the oil seed. Generally,
you can use a power operated dehuller for the operation. Removal of the outer
seed coat is necessary as it does not contain oil and inclusion of it in the unit
operations makes the oil extraction process less efficient. Some seeds such as
groundnut can be shelled by hand. Some other such as sunflower seeds are
usually hulled in machines. Still others, like safflower and colza, cannot be
shelled.

3. Grinding or rolling

Seed is not usually pressed whole since oil extraction is more efficient if
the seed is in smaller particles. Herein lies the relevance of the grinding process.
Grinding is the process for reducing the particle size. Additionally, you can use
small motor powered hammer mills for the unit operation.

Another alternate process used for the reduction of particle size is rolling the
oilseeds to produce flakes for oil extraction. Many large-scale commercial plants
find this the most effective approach. Additionally, with large oilseeds, it may be
necessary to grind the seed first, and then put the pieces through the flaking
rollers.

4. Heating

It is the final step for preparing the raw material for oil extraction. Heating leads to
increased oil yield. Heating helps in killing those enzymes present in the plant
tissue which have a deteriorating effect on oil quality.

Moreover, if you don’t use the oilseed cake for feed or feed, heating is useful as it
increases protein availability. Sometimes, you can press the oil bearing material
without heating it. Oil extracted in this way is called cold press oil.

5. Pressing

During processing, press the conditioned oil seeds/oil bearing material using a
lever press, hydraulic press or a mechanical expeller to remove the oil.

6. Refining

When you use the lower quality feedstock for oil extraction, you can use this
process. Basically, it helps in removing undesirable cloudiness, color, and flavor
from the extracted oil.
In groundnut oil production, mentioning the shelf life on packets or labels is
mandatory.

Properties of Chekku Oil:

Physical Properties

These properties of coconut oil are known to almost everyone. That being said,
there is nothing wrong with refreshing your memory.

Color: Coconut oil is colorless at or above 30o C. It is white when in its solid
form.

Odor: The typical smell of Coconut oil is that of coconuts (if not refined,
bleached, and deodorized).

Melting Point: Coconut oil melts at 25o C (76o Fahrenheit). It is solid below this
temperature.

Smoking Point: 1770 C (3500 Fahrenheit).

Solubility in Water: Coconut oil forms a white homogenous mixture when

beaten well in a little water. Otherwise, it is insoluble in water at room
temperature.

Density: 924.27 Kg/Meter3

Chemical Composition: Among the chief constituents, coconut oil also has;

I. Vitamin-E: The thing which you always wanted for silky hair and smooth,
younger looking skin.

II. Moisture: The amount of moisture present in Coconut oil varies greatly
depending upon the moisture content of the source, such as Copra or Fresh
Coconut; including the method of extraction and also on the processing done
on it. But obviously, coconut derived from well-dried copra will have less
 moisture than that from less dried copra or from fresh coconuts (virgin coconut
oil). Similarly, the oil subjected to heat will have less moisture than that which
was not exposed to heat.

III. Fatty Acids:

Name of fatty acid Percentage Remarks Type of fat

Lauric acid 45% to 52% Medium chain Saturated fat
fatty acid
Myristic acid 16% to 21% Medium chain Saturated fat
fatty acid
Caprylic acid 5% to 10% Medium chain Saturated fat
fatty acid
Capric acid 4% to 8% Medium chain Saturated fat
fatty acid
Caproic acid 0.5% to 1% Medium chain Saturated fat
fatty acid
Palmitic acid 7% to 10% Saturated fat
Oleic acid 5% to 8% Unsaturated fat
Palmitoleic acid In traces Saturated fat
Linoleic acid 1% to 3% Unsaturated fat
Linolenic acid Up to 0.2% Unsaturated fat
Stearic acid 2% to 4% Saturated fat

Market Analysis
Globally, the demand and supply of oil is disproportionately distributed, for
example Middle East contributes 32 percent of the world supply but demand is
only 7.8 percent, while Asia-Pacific has 30 percent of world demand but only 9.7
percent supply.
.
Currently, in India, the refined oil segment has a growth rate of around 20
percent per annum; and for the branded packed oil segment, the consumption
growth is 6 percent. The current per capita consumption of edible oil is low
compared to the world average. In the above context, an attempt has been made
to understand the buyer’s behavior and preferences for edible oils in Coimbatore
& Tiruppur district (Perception and Preference of edible oils among wholesalers,
retailers and consumers in Coimbatore & Tiruppur District by Abinaya C, Aparna K,
Arikaran P, Dilsha and Giri Prasath, 2018)

Target Market

The primary target market will be

a) Own share holders
b) Retail chains in Coimbatore & Tirupur district
c) Shops and Individuals
d) Events and exhibitions
e) Own Sales point outlets.

The targeted customers for industrial purpose will expect good quality and
regular supply of product with varied packing size.

Total Market Valuation

According to the research report, the India Edible Oil Market Report will
grow at a considerable CAGR rate thus exceeding INR 2,080 billion by 2019 due
to the increasing number of edible oil brands and rising consumption of edible oil
in the country.

Target Company revenue

Weekly sale of 300 Liters of Coconut Oil and 120 Liters of Groundnut Oil
with monthly capacity of 1.6 ton liter sales at the cost of Rs.200 / Litre with a
value of Rs.44, 12,160 per month is expected per year.

Competitors
 Competitors present are sparse with low quantities production and have
never been into direct marketing or advertising of product. Creating an
opportunity for new establishments.

Marketing / Sales Strategy

Direct contact and negotiation with industrial customers and supply of
finished retail saleable packets for individual customer use with second party
retails and direct retailing is planned. On long run with multiple products on hand
placing own retail outlet ( coconut point) is planned and supply to events and
meetings at regular level is being planned. For Coconut point subsidy from CDB
will be obtained.

Raw Material
Procurement of raw material from the shareholders will be at a rate of
Rs.14 per nut requiring about 500 dehusked nuts / day with the total of 12000
nuts per month and 50kg of groundnut seed per day with 1200 kgs per month.
Costing around Rs.3, 32,200/ month.

Pricing
Pricing is done by BoD of Pasumai Coconut Producer Company limited
with help of Vanavarayar Institute of Agriculture (VIA). Based on the market
price, the price will be fixed. Mostly Penetration type of pricing will be followed.

Revenue Sources
Revenue is generated from the stage of procurement where procurement
of raw material is from its own members with premium price generation income to
share holders of the company.

2. Cattle Feed:
Marketing of Cattle feed from the manufactures like SKM & KSE to the
shareholder and farmers directly on low cost basis.
3. Staffing and Operations
Management (including Board) Organization Chart

1. Board of Directors = 5 directors are in charge of planning and organizing of

business, financial decision making and future plans.
2. CEO Chief Executive officer = Management of daily activities, reporting,
accounting and maintenance of reports.
3. Employees = Daily work of collection of raw material cleaning and processing.

Man power requirement

Sl. No Designation Number

Production Manager (CEO –
1. 1
PCPCL)
2. Plant Supervisor (PCPCL) 1
3. Plant labors 2

Staffing

Employees will be give training for better handling and safety of Machinery
use. The CEO will be attending training on better management of FPO
documentation accounting and conduct of daily activities.
1.Economics of Oil Business:
One Share Value in Rs / Share 250/- Note: Shareholder paid
up share capital of Rs
Subscription/ Year 100/-
5.32 Lakhs (532 farmers
Authorised Share Capital in Rs. 15,00,000/- each owning a share of
Paid Up Share Capital 532000/- Rs 1000)

A. Investment Cost
S.No. Items Phy. Unit Total Status
Units Cost Cost
(Rs./unit) (Rs.)
1 Cost of Chekku 2 Nos 277300 5,54,600 Installed
2 Cost of construction 1000 Sq. 650 6,50,000 Installed
of shed ft
3 Cost of Filter Machine 1 No 106200 1,06,200 Installed
4 Cost of Botteling 1 No 88500 88,500 Installed
Machine
5 Cost of Other 1 No 374566 3,74,566 Installed
Machines ( Pulveriser,
Poly bag, Wheel
Barrow, Weighing
Scale, De huller, Flour
Machine,
Decorticator, )
6 Insurance 1 No 27730 21,164 Installed
7 Miscellaneous assets 10,000 Installed
8 EB & Wiring 3,00,000 Installed
arrangements
Total cost 21,05,030

B. Recurring Cost:
Sl.no Particulars Cost
(RS.)
1 Cost of Coconuts @ 500nuts/ day @ 168000
24 operating days per month @
Rs.14/nut (500*24*14)
2 Cost of Groundnut @ 50Kg/day @ 108000
24 operating days per month @
 Rs.90/kg (100*24*90)
3 Transport Charges, Loading & 6,900
Unloading@2.5% of Raw material
Cost
4 Electricity charges @ Rs. 35/hour (5 8,400
hours/day)
5 Rent 2,500
6 Labour charges 3 person @ Rs. 300 21,600
per day (300*2*24)
7 Packing charges ( 70 litres/day @ 16,800
Rs.10/Litre for 24 days)
TOTAL 332200

C. Cash Outflow / Year

Years
Sl.no Particulars I II III

Capital cost 15,11,596 - -

1 Cost of Coconuts 2016000 2419200 2903040

2 Cost of Groundnut 1296000 1555200 1866240

3 Transport Charges, Loading & 82800 99360 119232
Unloading Charges
4 Electricity charges 100800 120960 145152
5 Rent 30000 36000 43200
6 Labour charges 259200 311040 373248
7 Packing charges 201600 241920 290304
Total 39,86,400 47,83,680 57,40,416

D. Cash Inflow / Year

Years
Sl.no Particulars I II III
Coconut Oil
By sale of Coconut Oil @65%
Recovery (50 Liters/day *
1 24 days * Rs.200/-) 28,80,000 34,56,000 41,47,200
 By sale of Coconut Cake
2 (25Kg/day @ Rs.20/Kg) 1,29,600 1,55,520 1,86,624
Sale of Coconut Shell
(500 nuts @120gms/nut@
3 Rs.7/kg) 1,20,960 1,45,152 1,74,182.4
Sub Total 31,30,560 37,56,672 45,08,006
Groundnut Oil
By sale of Groundnut Oil @45%
Recovery (20 Litres/day*24
1 days*Rs.200/-) 11,52,000 13,82,400 16,58,880
By sale of Groundnut Cake
2 (30Kg/day @ Rs.20/Kg) 1,29,600 1,55,520 1,86,624
Sub Total 12,81,600 15,37,920 18,45,504
Grand Total 44,12,160 52,94,592 63,53,510

Assumptions
Total No. of Coconut Processed per day 500 Nos
Total Kgs of Groundnut Processed per day 50 Kgs
Operating Days 24 days
Coconut to Copra Conversion Ratio ( %) 15 %
Copra to Oil recovery 65%
Groundnut Seed Oil recovery 45 %
Rs. 200
Sale Price per litre
Operating Time per day 5 Hours
Coconut to Copra conversion period 3 days
Rs. 14 per
Cost of Coconut nut
Rs.90 per
Cost of Groundnut Kg
 2.Economics of Cattle Feed Business:
Procurement Price ( 70 Kg 2018 -19 Y1 Y2 Y3
Bag) (2019-20) (2020-21) (2021-22)

Cattle Feed 1350 1450 1,486 1,523

Selling Price ( 70 Kg Bag) Y1 Y2 Y3

Feed Sales 1,365 1,465 1,501 1,539

Cattle Feed Requirement per

month Y1 Y2 Y3
No of Farmers with Dairy
Animals (Approx. 2 animal
per farmer) @5 % increase
YoY 275 300 314 330
Total Feed Requirement
@3Kg/Cow/day *30 24,750 27,000 28,260 29,700
Total Feed Procurement ( In
bags) 354 386 404 424

Produce Procurement / Year Y1 Y2 Y3

Cattle Feed 354 386 404 424

Procurement Cost 57,27,857 67,11,428.57 72,00,244.29 77,56,314.11

Feed Sales Details / Year Y1 Y2 Y3

Feed Sales (70Kg Bag) 57,91,500 67,78,543 72,72,247 78,33,877

Sale of Bag @ Rs. 10/bag 42,429 46,285.71 48,445.71 50,914.29

Total Sales Details 58,33,929 68,24,829 73,20,692 78,84,792

Assumptions
Total Feed Requirement / 3 Kgs
cow/day
No. of Cows per farmer 2 Nos
YoY increase of Cows 2%
 Projections of Pasumai Coconut Producer Company Limited

Coimbatore District - Coverage at Various Levels

Projecte Projected Projected
s Coverage d 2019 - 2020 - 2021 -
2019 -20 2020 -21 2021 -22
A Share Holders
No. of Shareholders 532 752 1002
Opening No. of Shares - Individual 400 532 752
No. of Shares Issued During the year :-
- To Individual Share Holders 132 220 250
- To Farmers (Under SFAC Scheme) 0 0 0
Total No. of Shares - Individual 132 752 1002

Share Amount Opening Balance 400000 532000 752000

Share Amount Collected During the Year -
Individual 132000 220000 250000
Share Capital from Equity Grant - SFAC Scheme 0 0 0
Total Share Capital 532000 752000 1002000

Total Share Capital in Rs 532000 752000 1002000

Projecte Projected Projected

II Operational Cost d 2019 - 2020 - 2021 -
2019 -20 2020 -21 2021 -22
A Producer Company Level

Total No of CEO 1 1 1
Marketign Staff 1 1
CEO Salary per month 20,000 35,000 38,500
Total CEO salary per month 20,000 35,000 38,500
Total CEO salary per Annum 2,40,000 4,20,000 4,62,000

Total Staff Salary Expenses Per Annum 2,40,000 4,20,000 4,62,000

B BOD and AGM

No of BoD meeting Conducted Per month 1 1 1
Total No of BoD meeting Per Annum 12 12 12
 BoD meeting Expenses per Month 500 550 605
BoD meeting Expenses per Annum 6,000 6,600 7,260

No of AGM per Annum 1 1 1

Total No of AGM per Annum 20,000 22,000 24,200
AGM expenses per Annum 20,000 22,000 24,200

Training of Staff, BOD and Members Expenses

Per Month 1,500 1,650 1,815
Training Expenses Per Annum 18,000 19,800 21,780

Total BOD & AGM related Expenses Per

Annum 44,000 48,400 53,240

C Administration Expenses
Monthly Expenditures :-
Rent Expenses per Month 3,000 3,300 3,630
Total Rent Expenses Per Annum 36,000 39,600 43,560
Electricity Expenses Per Month 500 550 605
Total Electricity Expenses Per Annum 6,000 6,600 7,260
Printing & Stationery Expenses Per Month 1,000 1,100 1,210
Total Printing & Stationery Expenses Per
Annaum 12,000 13,200 14,520
Office Maintenance Expenses Per Month 500 550 605
Total office Maintenance Expenses Per Annum 6,000 6,600 7,260
Travel Expenses Per Month 2,000 2,200 2,420
Total Travel Expenses Per Annum 24,000 26,400 29,040
Annual Expenditure :-
Audit and Statuatory Expenses 30,000 33,000 36,300
ROC filing fees 1,000 1,100 1,210
Goods Insurance 1,500 1,650 1,815
Consultancy & Professional Fees 5,000 5,500 6,050
Rates & Taxes 2,000 2,200 2,420
Warehouse Rent 1,200 1,320 1,452
Loading & Unloading Charges 3,500 3,850 4,235
Bank Charges 1,000 1,100 1,210
Total Administration Expense Per Annum 1,29,200 1,42,120 1,56,332

D Assets
2 wheelers - 60,000 -
 Computer, Printer & Software - - -
Weighing machine - - -
Table, chairs, bero etc., - -
Investment and Infrastructure Cost - 60,000 0

Projecte Projected Projected

Trading of Cattle Feed and Value Addition
V d 2019 - 2020 - 2021 -
Charges
2019 -20 2020 -21 2021 -22
A Quantity

1 Cattle Feed ( Bags/Month) 386 404 424

2 Coconut Oil (Litres/month) 1,200 1,440 1,728
3 Groundnut Oil (Litres/month) 480 576 691

B Produce/Produce Procurment Cost in Rs.

67,11,42
1 Cattle Feed ( Year) 9 72,00,244 77,56,314
Coconut & Groundnut Procurement & Processing 39,86,40
2 Cost ( Per Year) 0 47,83,680 57,40,416

Produce/Product Procurement cost-Total 1,06,97,8 1,19,83,92 1,34,96,73

29 4 0

C Produce/Produce Sales Cost in Rs.

68,24,82
1 Cattle Feed ( Year) 9 73,20,692 78,84,792
44,12,16
2 Coconut Oil & Groundnut Oil ( Per Year) 0 52,94,592 63,53,510

Produce/Product Sales cost-Total 1,12,36,9 1,26,15,28 1,42,38,30

89 4 2
Projected Cash Flow Statement
Projecte Projected Projected
N
Particulars d 2019 - 2020 - 2021 -
o
2019 -20 2020 -21 2021 -22
1 Opening Balance 0 6,43,660 15,22,360

2 Cash Inflow
- Share Capital 5,32,000 2,20,000 2,50,000
- Subscription 53,200 75,200 1,00,200
- Sale of Produce or Product 1,12,36,9 1,26,15,28 1,42,38,30
89 4 2
- Other Income
- Other Current Liabilities
- Secured Loans/Working Capital Facility
- Share Application
- Unsecured loans
- Trade Payables
1,18,22,1 1,35,54,14 1,61,10,86
TOTAL CASHINFLOW 89 4 2

3 Cash Outflow
- Programme Cost - - -
- Producer Company - Staff Salary 2,40,000 4,20,000 4,62,000
- Producer Company Administration Expenses 1,29,200 1,42,120 1,56,332
- BoD and AGM related Expenses 44,000 48,400 53,240
1,06,97,8 1,19,83,92 1,34,96,73
- Produce/Product Procurement cost 29 4 0
- Loan Repayment - Principal
- Interest on Loan/Working Capital 67,500 81,000 97,200
- Infrastructure and Investment - -
- Share Holders Divident - - -
- Trade Receivables - - -
- Short term loans & Other Current Assets - - -
- Withheld price - - -
- Income Tax paid - - -
Reserves : -
- Reserve Fund - - -
- Staff Bonus Fund - - -
- Charity Fund - - -
- Dividend Equalization Fund - - -
 - Development of Cooperative - - -
1,11,78,5 1,26,75,44 1,42,65,50
TOTAL CASH OUTFLOW 29 4 2

4 Net Cashflow 6,43,660 8,78,700 18,45,360

5 Closing Balance 6,43,660 15,22,360 33,67,720

Projected Profit and Loss Analysis

Projecte Projected Projected

N
Particulars d 2019 - 2020 - 2021 -
o
2019 -20 2020 -21 2021 -22
1 REVENUE :
- Subscription 53,200 75,200 1,00,200
- Sale of Produce or Product 1,12,36,9 1,26,15,28 1,42,38,30
89 4 2
- Closing Stock 0 0 0
- Other Income 0 0 0
1,12,90,1 1,26,90,48 1,43,38,50
TOTAL REVENUE 89 4 2

2 EXPENDITURES :
Opening Stock 0 0
1,06,97,8 1,19,83,92 1,34,96,73
- Produce/Product Procurement cost 29 4 0
- Trading of produce/product expenses
- Programme Cost
- Producer Company - Staff Salary 2,40,000 4,20,000 4,62,000
- Producer Company Administration Expenses 1,29,200 1,42,120 1,56,332
- BoD and AGM related Expenses 44,000 48,400 53,240
- Interest on Loan
- Management cost to Ciks/Vrutti
- Withheld price
- Depreciation - - -
- Provision for Storage Losses
- Provision for Bad Debts

1,11,11,0 1,25,94,44 1,41,68,30

TOTAL EXPENDITURE 29 4 2

Net Income (before tax) 1,79,160 96,040 1,70,200

Income Tax 0 0 0
Profit After Tax 1,79,160 96,040 1,70,200
Projected Balance Sheet -PCPCL
Projecte Projected Projected
N
Particulars d 2019 - 2020 - 2021 -
o
2019 -20 2020 -21 2021 -22
Assets:
Fixed Assets - Land & Buildings 15,11,59 13,60,436. 12,24,392.
6 40 76
Other Movable Assets - - -
Trade Receivables - - -
Other Current Assets - - -
Cash and Bank Balance 6,43,660 15,22,360 33,67,720
Short Term loans and advances - -
Inventories 0 0 0
21,55,25 28,82,797 45,92,113
Total Assets 6

Liabilities:
Share capital 5,32,000 7,52,000 10,02,000
Reserves and Surplus 1,79,160 2,75,200 4,45,400
Other Long Term Liabilities (Related Parties)
Secured Loans/Working Loan Facility 2,05,106
Unsecured Loans from Share Holders &
Members
Trade Payables
Other Current Liabilities
Share Application pending allotment
Provison for income tax 20,553 0
Provsion for Storage Loss & Bad Debits - - 0

Total Liabilities 9,16,266 10,47,753 14,47,400

Technical Feasibility of the project:

The area is flooded with coconut & groundnut, since coconut is the main
crop in that region. Groundnut Oil is one of the main part of our diet. Already
solar coconut tunnel dryer is installed with the support of DST at Perumpathy we
can use the facilities in their plant.
As the farm is situated in the nearby village, labor force is sufficiently
available from these villages.

Marketing:

Direct Marketing has been planned to sell the oil. Also a target of 2 Litre
of oil per month is per member is been planned initially.

Repayment:

The repayment schedules are furnished in the project report. The loan
limit of will be recovered in 6 annual installments from I year as shown in the
repayment schedule.
 Pasumai Coconut Producer Company Ltd

Projected Projected
Projected
I Working Capital Calculation 2020 -2020 - 2021 -2021 -
2019 -2019 -20
21 22
Total Turnover
Sale of Feeds 68,24,829 73,20,692 78,84,792

Sale of Oil 44,12,160 52,94,592 63,53,510

Total 1,12,36,989 1,26,15,284 1,42,38,302

Working Capital Gap (WCG) 1,12,36,989 1,26,15,284 1,42,38,302

Working Capital Loan = One Month of

WCG 9,36,415.71 10,51,273.70 11,86,525.16

Actual WC Requirement 9,00,000

Fund From Shareholders 4,00,000
Working Capital Requirement
(Rounded off) 5,00,000

Projected Projected
I Projected
Term Loan Calculation 2020 -2020 - 2021 -2021 -
I 2019 -2019 -20
21 22
Purchase of Assets 21,05,030
Subsidy From MSDA Scheme 900000
Loan from Bank 600000
2 wheelers - 60,000 -
Computer, Printer & Software - - -
Weighing machine - - -
Tarpaulin, crates, etc - - -
Total 6,00,000 60,000 -

Term Loan = 30% of total cost 6,31,509 45,000 -

Term Loan Requirement (Rounded

off) 6,00,000 1,00,000 -
E. REPAYMENT SCHEDULE: (Amount in Rupees)

Share Amount Available 532000

Total Amount Needed
for Business 21,05,030
Total Loan Taken from
UBI 6,00,000

Subsidy from MSDA 900000

Loan Income
Distributed from
during the Outstanding at the the Total Net
Sl.no Bank Loan year end of the year project Repayment outgoing surplus DSCR

Principle Interest Principle Interest

1 6,00,000 6,00,000 81,000 6,43,660 1,20,000 81,000 2,01,000 4,42,660 2.20

2 4,80,000 4,80,000 64,800 6,43,660 1,20,000 64,800 1,84,800 4,58,860 2.48

3 3,60,000 3,60,000 48,600 6,43,660 1,20,000 48,600 1,68,600 4,75,060 2.82 2.890461
4 2,40,000 2,40,000 32,400 6,43,660 1,20,000 32,400 1,52,400 4,91,260 3.22

5 1,20,000 1,20,000 16,200 6,43,660 1,20,000 16,200 1,36,200 5,07,460 3.73