Professional Documents
Culture Documents
OF
M/s PRAMOD DAIRY
AT
Promoter:
PRAMOD KUMAR
Vill. Kanyoun, P.O. Rama, Teh. Nahan Distt. Sirmour
Chartered Accountants
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Confidential
This Document should be treated as
confidential and must not be reproduced,
copied, or disposed directly or indirectly, not
used for any purpose other than that for which
it is specially furnished without the permission
of “M/s Sumit Kumar Aggarwal & Associates”
Kala Amb.
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Chartered Accountants
CHAPTER 1
EXECUTIVE SUMMARY
Introduction
M/s Pramod Dairy is proposed sole proprietorship concern promoted by Sh. Pramod
kumar aged 30 years R/o Village kanyoun P.O. Rama, Teh Nahan, Distt. Sirmour, HP.
Promoter has decided to commence its business by producing dairy products. The
promoter has already owned land measuring 15 bighas at Village Kanyoun, Rama,
Nahan, Distt Sirmour HP. The piece of land is very strategically and ideally located on
Ramadhaun, Road at Kanyoun, just 11 k.m. from city Nahan.
Initially components of the subsidy which is Rs 8.90 Lacs will be financed by the bank
which will be adjustable in the amount of the loan in the latter years.
Employment
Besides this the promoter will provide new employment opportunities for the
unemployed youth. It is proposed to provide new direct employment to 13 persons and
indirect employment will be provided to many more people.
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M/s PRAMOD DAIRY
CHAPTER 2
IMPORTANCE AND MARKET POTENTIAL
Recent study shows that India is the largest producer of the milk in the world which is
nearly 10% of the world production. Various milk- based products which can be
manufactured commercially in a rural industry are Paneer, Cheese, Curd, Ghee etc.These
products can be produce by the low cost traditional methods and machineries. This kind
of industries can be located in area where abundance quantity of milk available. The cost
of these products would be considerably low as compare to those of small companies.
Moreover a good number of employment generations are possible with low investment.
India derives nearly 33% of the gross domestic population form agriculture and
has 66% of economically active population, engaged in agriculture. The share of
livestock product is estimated at 21% of total agriculture sector. Growth prospects in the
dairy sector are very bright.
Milk and its products are the essential items of the daily life in our country, especially
majority of Indians are vegetarian and thus milk products are indispensable to Indians.
The per capita consumption was 122 gms per day in 1980 against an availability of 281
gms. Today per capita consumption as well as production quantity has increased and
there is a need to make available milk and milk products to the people at reasonable price
which can be attained only by setting small scale model dairy unit in different milk
producing areas to cater to the local needs. There is a challenge of multi-national
companies paying major role in this industry. So it would be better for rural industries to
produce milk products with a traditional as well as modern tinge.
Dairy development in India has been acknowledged the
world over as one of the modern India’s most successful development programme. India
is the second largest milk producing country with anticipated production of 78 million
tons during 1999-2000. The production of milk products stood at 3.07 lacs tons in 1999-
2000. Production of milk powder including infant milk food has
risen to 2.25 lacs tons in 1999-2000, whereas that of malted food is at 65000 tons. Off
late market for milk products is showing a steady increase.
Vast potential of growth of modern farms through scientific
planning, using emerging technologies of dairy production and modern management
techniques exist in India. The last few years saw an unprecedented growth in milk
procurement, processing, transportation, and milk distribution in most of the part of the
country. Bulks of this milk come from small unorganized, traditional dairy farmers
without giving much consideration for quality of milk. Tremendous potential exists for
large scale quality milk production through modern dairy farms to match the growth of
dairy processing industries in this country. The present low level of per capita availability
of milk with booming population clearly indicate ever increasing need as well as demand
of milk in this country. Availability of dependable source of irrigation for growing fodder
and comparatively low price of concentrate, high producing animals and modern dairy
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farming techniques are essential to turn a dairy farm in profit. Keeping all these points in
view it has been proposed to establish a commercial dairy farm.
Besides this the unit provides new employment
opportunities for the unemployed youth. It is proposed to provide new direct employment
to 13 persons and indirect employment will be provided to many more people. In it own
way the proposed unit will be contributing to remove the increasing unemployment in the
state thereby developing the enterprising atmosphere. The promoter intends to produce
the hygiene products in order to build up a reputation for the proposed unit. Considering
all the aspects especially the demand factor, marketing will not be a problem for the
proposed unit.
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M/s PRAMOD DAIRY
CHAPTER 3
COST OF PRODUCTION AND PROFITABILITY
3.6 OVERHEADS
Necessary provision for the expenditures to be incurred on administration and
distribution have been done while working out profitability. Details of overheads
are given in annexure 15 and 16.
3.8 DEPRICIATION
Depreciation has been calculated by the WDV method. Rate of depreciation for
the Furniture & Fixture is @ 10%, Plant and Machinery @ 15%, Computers @
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25% and building @ % and Misc. Fixed Assets @ 10% as per detail given in
Annexure-06
Profitability statement indicates sound financial position of the proposed unit and is
therefore recommended for speedy implementation.
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M/s PRAMOD DAIRY
CHAPTER 4
COST OF PROJECT AND MEANS OF FINANCE
LAND:
The promoter has already owned 30 bigha of land at village chalana, Ddahu,
Nahan, Distt. Sirmour, HP. The relevant land documents are enclosed. In project
calculations only land development expenses capitalized to land account which
works out to Rs.6/- lacs.
BUILDING:
As per the detailed cost estimates provided by the promoter the total cost of the
construction of the building work out to Rs. 7.64 lacs
COMPUTERS
One computer and printer is considered sufficiently for running the project. The
total cost of the computer works out to Rs.0.35 lacs.
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(expenses other than RM) has been taken as average 30 days. Inventory period for
finished goods is taken on cost of production for 2 days. Debtor holding period is
taken 15 days on sale value. Creditors are ready to give credit of 10 days on
purchase value of raw material. It is estimated that the total working capital
requirement of the proposed organization would be 6.54/- lacs during the first
year operation. Any increase in the subsequent year would be met out of each
accruals of the project which are available throughout of the period.
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M/s PRAMOD DAIRY
CHAPTER 5
ECONOMIC VIABILITY
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