1 .

INTRODUCTION

Wheat Atta is a powder made from the grinding of wheat used for human
consumption. More wheat Atta is produced than any other Atta. Wheat varieties
are called "clean," "white," or "brown" or "hard" if they have high gluten content,
and they are called "soft" or "weak" Atta if gluten content is low. Hard Atta,
or bread Atta, is high in gluten, with 12% to 14% gluten content, and has elastic
toughness that holds its shape well once baked. Soft Atta is comparatively low in
gluten and so results in a finer or crumbly texture. Soft Atta is usually divided
into cake Atta, which is the lowest in gluten, and pastry Atta, which has slightly
more gluten than cake Atta.

In terms of the parts of the grain (the grass fruit) used in Atta—the endosperm or
protein/starchy part, the germ or protein/fat/vitamin-rich part, and the bran or
fibre part—there are three general types of Atta. White Atta is made from the
endosperm only. Whole grain or whole meal Atta is made from the entire grain,
including bran, endosperm. and germ. A germ Atta is made from the endosperm
and germ, excluding the bran.

WHEAT ATTA

All-purpose or plain Atta is blended wheat Atta with protein content lower than
bread Atta, ranging between 9% and 12%. Depending on brand or the region
where it is purchased it may be composed of all hard or soft wheats, but is
usually a blend of the two, and can range from low protein content to moderately
high. It is marketed as an inexpensive alternative to bakers' Attas which is
acceptable for most household baking needs

Atta is the Atta used to make most north India flatbreads, such
as chapati, roti, naan and puri. Most atta is milled from the semi-hard wheat
varieties, also known as durum wheat, that comprise 90% of the Indian wheat
crop, and is more precisely called durum atta.

Hard wheats have a high content of gluten (a protein composite that gives
elasticity), so doughs made out of atta Atta are strong and can be rolled out very
thin. Indian wheat are mostly Durum wheat, which are high in protein but less in
"bread forming gluten" so the bread when baked with this Atta does not rise as
well and tend to be dense

Traditionally fresh Atta were prepared at home by grinding wheat in homemade

stone grinder known as Chakki. Atta has high fiber content due to high bran and
also has high in gluten thus its doughs can be strong and rolled out very thin.

Atta consist of all parts of wheat grain. It has bran, which contains fiber and other
nutrients (vitamins B, iron, magnesium, and phytochemicals), endosperm, which
contains carbohydrate, and germ, which consist of vitamin E and polyunsaturated
fat, remain. Atta is considered healthier than Maida, which has endosperm only,
thus rich in carbohydrate.
Products and its uses:-

Wheat Powder / Atta, Atta

In India wheat products like 'wheat powder' or 'wheat Atta', 'atta Atta' are
available in the market.

Whole Wheat grains

Whole wheat grains contain all three parts of the kernel (Kernel means a grain or
seed, as of a cereal grass, enclosed in a husk). There are, mainly, three parts for a
wheat grain.

Parts of a wheat-grain

(1) Germ (2%) - Embryo of the wheat kernel.

(2) Endosperm (85%) - Nutritive tissue surrounding the embryo.
(3) Bran - Multi-layered outer skin of the kernel.

NORTH INDIA: Products of Pulverized Wheat-grains

 Wheat Powder/Atta - 'Whole Grain' (Mixture of Germ, Endosperm and

Bran)
 Atta Atta – Mixture of Endosperm and Bran
Some chapati mixes are said to be made from a combination of maida
Atta (bleached white Atta) and atta.
Traditional Preparation of Atta

An old manual grinder to make Atta

The Atta Atta found in commerce varies in fiber content from near 0% to 12%.
Atta is obtained from grinding complete wheat grains. It is creamy brown in color
and quite coarse compared to other types of Atta.

Traditionally, atta is made by stone grinding, a process that imparts a

characteristic aroma and taste to the bread. The high bran content of whole meal
atta makes it a fiber-rich food. This may help to regulate blood sugar as well have
other health benefits.The temperatures attained in a chakki (mill or grinder,
traditionally from stone), produced by friction, are of the order of 110-125 deg C.
At such high temperatures, the carotenes present in the bran tend to exude the
characteristic roasty smell, and contribute to the sweetness of the Atta.
 2. P R O M O T E R S’ B A C K G R O U N D

A
THE
COMPANY:
The said project has been promoted by M/S ASP Flour Bhog Mill and is
towards creation of a Automatic Atta Chaki Plant at Garahi, Jandaha, Vaishali
(Bihar). The promoters have proposed a Automatic Atta Chaki of 4 8 0 0 MT
capacities per annum for P r o d u c t i o n a n d p r o c e s s i n g A t t a Chaki and
Godown Space. The firm is partnership and has been established on
13/03/2018. and Smt. Ramdulari Devi (55%), Sh. Suresh Rai (22.5%) & Sh.
Arjun Kumar (22.5%) promoted the firm. It is family owned business. Rai
family already has been in the business of food grain, eatable oil & trading of
cement since last 15 years.

B. CAPITAL STRUCTURE OF THE FIRM:

The total capital structure of the firm is as under at initial level: -

PARTICULARS AMOUNT
Ramdulari Devi ((`(Lacs)
4,00,000
Suresh Rai 3,00,000
Arjun Rai 3,00,000

Net-worth details of Ramdulari Devi

As per the Net worth details of Ramdulari Devi declares total assets holding
of Rs. …… Lacs which comprises of `Rs … Lacs of immovable property
and `Rs …. Lacs as movable property. There is loan and liabilities to a tune
of …. Lacs.

Net-worth details of Suresh Rai

Net worth details of Suresh Rai declares a total asset holding of Rs …

Lacs which comprises of Rs Nil Lacs of immovable property and ` …. Lacs
of movable property.

Net-worth details of Arjun Rai

 Net worth details of Arjun Rai declares a total asset holding of Rs … Lacs
which comprises of Rs Nil Lacs of immovable property and ` …. Lacs of
movable property.

C. MANAGEMENT: At present the firm has three partners. The business

experience are as follows: -
1. Suresh Rai: Mr. Prasad has been in the business of building material,
food grain & edible oil since 15 years . He will be associated with the
overall marketing & production. He is app 45 years old.

2. Arjun Rai: He is a qualified graduate and has worked for proprietary

business of Foods & other allied products since last 10 years.

3. PROJECT DESCRIPTION

As mentioned earlier, the project is envisaged and is being installed in the line
of RABC with major emphasis on Atta Chaki.

Table: The main facilities envisaged under the project are

summarized as follow:
Sl. No. FACILITY OBJECT
Godown 2 Chamber IVE
1. To increases the holding capacity
One for food grain chambers for of Wheat & Finished Products Atta etc;
Grain storage; 2nd for Finished
product
Wheat Sorting, Grading & To facilitate the upgrading and sorting
2. Cleaning Line of wheat for trading and on job work
(2-3 TPH) basis;
To provides better quality wheat
3. Wheat Milling (Atta Chakki) inputs to p r o d u c e b e t t e r q u a l i t y
& Packing line of Products of Atta
Office cum farmers Display of rates and training
4. information center approximately 10 farmers at a time, in
producing good quality potato & maize;
 3. 1. PROJECT COMPONENTS
The project has following components:

3.2. ATTA STORAGE FACILITY

The food grain wheat storage godown with a storage capacity of 500
MT. The capacity of the godown, has been decided on the basis of demand
of the product and the facility has to be built up as per the technical and civil
specifications.
The details of the specifications have been inked in the blue print and the
same document has been attached with this report.

3.3. ATTA PACKING & GRADING LINE

In order to increase the value of supply Atta and its quality the unit also
proposes to come up with a sorting and grading line in order to carry out atta
processing and trading of the processed wheat atta. The packing and grading
line installed at the unit is of 3.125 TPH capacity and is proposed to run almost
2 shifts (of 8 Hours each daily).

3. 4 COMPULSORY T
ASKS

A. FUNDING ARRANGEMENTS
The proposed unit will require sizable capital investment. For running the
unit sustainably, it needs proper amount of investment in form of working
capital as well. The promoters thus need to arrange sufficient fund from
various sources. The equity capital from the promoters & availing debt fund
are the traditional avenues which the promoters are looking at for this
purpose. Promoters have informed that they would be able to infuse the
required amount of equity capital and they are arranging for that from their
 side.
Subsidy finance available under the “Scheme for Integrated Development of
Food Processing Sector” by the GoB is also a substantial avenue for
funding the project. For this purpose, they have approached the PMA.

Overall as a necessary task towards the project, the promoters

need to:
a. Chalk out the plans to arrange for Equity Fund towards estimated capital
investment and margin money for working capital as and when required;
b. Fulfill the criteria of bank(s) towards availing lending from
them.

c. Fulfill all the eligibility criteria on a continuous basis for availing grant
from GoB as set through the scheme guidelines & communicated to
them by the programme management agency.

B. ARRANGEMENT OF CERTIFICATES/LICENSES &

COMPLIANCES
As per the statutory requirements specified by the Government, the
promoters need to arrange for some statutory status/documents in order to
carry out the project legally forming an important project component.
Table: List of clearances needed for the project:
Sl.No PARTICULARS SATAUS
.
1. Registration Obtained,
2. SIPB Approval Obtained,
4. Land Conversion Certificate for using the Agricultural Not Applicable
Land for Industrial purpose,
5. Consent order from the State Pollution Control Board Under process,
under Prevention and Control of Pollution Act for Air
and Water
6. Factory Licences (Labour Certificate) Yet to be
Obtained,
7. Registration by Director of Legal Metrology Yet to be
(under the Standards of Weights & Measures Act, Obtained,
1956);Registration Number from the Excise Tax
8. GST Yet to be
Officer Obtained,
(under VAT
9. License Acts)of Agri In-puts
of Trade Yet to be
Obtained,
10. License from FSSAI Yet to be
Obtained,
Copy of all the documents obtained till date are annexed to the report.

3.5 P R O J E C T L O C A T IO N A N D L A N D

The current project is proposed at Garahi, Jandaha, Vaishali (Bihar).

The land has been in the name of partner and is well in possession of the
company and there is entrance to the unit from east side via 30 ft wide road.

4. PROCESS DESCRIPTION

Atta Chakki mills are mills that use cylindrical rollers, either in opposing pairs
or against flat plates, to crush or grind various materials, such as grain, and
 others. Roller grain mills are an alternative to traditional millstone arrangements
in gristmills. Roller mills for rock complement other types of mills, such as ball
mills and hammer mills.

To produce refined (white) wheat Atta, grain is usually tempered, i.e. moisture
added to the grain, before milling, to optimize milling efficiency. This softens the
starchy "endosperm" portion of the wheat kernel, which will be separated out in
the milling process to produce what is known to consumers as white Atta. The
addition of moisture also toughens the bran and ultimately reduces the energy
input required to shatter the kernel, while at the same time avoiding the shattering
of bran and germ particles to be separated out in this milling process by sieving
or sifting.

The endosperm portion of the kernel makes up about 80% of the volume and is
desirable because the products produced by this white atta are often considered to
have milder flavor, smoother texture, and, in the case of bread, greater volume.
The balance of the kernel is composed of the bran and the germ which tend to be
coarser. With the invention of the roller milling system in the late 19th century,
the bran and the germ were able to be removed, dramatically improving the
appeal of baked products to the public.

The moistened grain is first passed through the series of break rollers, then sieved
to separate out the fine particles that make up white Atta. The balance are
intermediate particles of endosperm (otherwise known as product middling or
farina) and coarse particles of bran and germ. The middling then makes multiple
passes through the reduction rolls, and is again sieved after each pass to
maximize extraction of white Atta from the endosperm, while removing coarser
bran and germ particles.

To produce whole wheat Atta, 100% of the bran and germ must be reintroduced
to the white Atta that the roller milling system was originally designed to separate
it from. Therefore, these elements are first ground on another mill (usually a pin
mill). These finer bran and germ fractions are then reintroduced to the endosperm
(white Atta) to produce whole wheat Atta made of 100% of the kernel of wheat.
 5. O R G A N I Z A T I O N S T R U C T U RE

Currently the following organization structure has been proposed by the firm for the
coming Automatic Atta Chakki Plant. However, this organization structure has future
needs as the major imperative and hence will evolve accordingly.

Table. Detail of the considered staffing pattern is as follow:

Workforce Assumptions Nos. Salary p.m. Total
Managerial (Rs.)
Manager 1 25,000 20,500
Supervisor/ Technicians 1 15,000 15,000
Accountant 1 15,000 15,000
Permanent & Skilled staff
Operator 3 12,000 36,000
Unloading Assistant 50 8,000 40,000
Electrician 1 12,000 12,000
Helper 7,000 70,000
Total (Permanent Work 10 58
Force)Employee cost
Total 5,01,000
Total Employee cost in `Lacs p.a (encl 15% benefit) 28.84
benefit)
Promoters have proposed to provide at least 10% in lacklustre trade on the
wholesale grains market today on adequate supplies against reduced offtake by flour
mills.
However, other grains moved in a tight range in limited deals and settled around
previous levels.

Traders said reduced off take by flour mills against adequate stocks position mainly
put pressure on wheat prices. In the national capital, wheat dara (for mills) slipped by
Rs 5 each to Rs 1,570-1,575 per quintal. Atta chakki delivery traded lower by the
same margin to Rs 15,75-1,580 per 90 kg.

The following were today's quotations per quintal:

Wheat MP (deshi) 2,000-2,200,
Wheat dara (for mills) 1,670-1,680,
Chakki atta (delivery) 1,570-1,680
Atta Rajdhani (10 kg) 210,
Shakti bhog (10 kg) 300,
Roller flour mill 1100-1200 (50 kg),
Government's wheat buying may touch 28-30 million tonne this season
(ET 29/5/2013)
Wheat procurement in the Rabi marketing season 2013-14 is likely to touch 28-30
million tonne. When procurement began in April, the government had estimated to
buy 44.06 million tonne wheat this year. "Wheat procurement this season will fall to
28-30 million tonne," said Union Food Minister KV Thomas. He added that since the
government was strict with the OMSS price and didn't accept the industry demand of
cutting wheat price, private trade have begun procuring in this season.
 7. C I V I L C O N S T R U C T I O N S
7. 1 L A N D S I T E A N A L Y
SIS

(a) The land for the project is located at Plot No.-2500, Holaschak,, PS – Janipur,
Patna.
(b) Total size of the land is approx 208.625 sq fts. Out of this: 125.175 sqfts
(60%)
is the total covered area, and rest 83.45 sqfts (40 %) is left as open space. Out
of this open area space, about 31% area is for Open Shade & internal roads
for smooth movement of heavy trucks.
(c) The site is situated Plot No.-2500, Holaschak, PS-Janipur, Patna and the same
is linked to Patna through PWD Road (AIIMS to Akabarpur). It is very well
connected by road.
(d) >6m wide PCC road is the internal plant road constructed for the said project.

The layout of the plant has been developed keeping in the view the following
factors:

 Smooth and uninterrupted flow of materials in accordance with

the technological requirements.
 Contours and gradient of the site
 Optimum lead for transport of materials and for service lines
 Logistic approach in location of technological units as well as service facilities
 Safety clearances & statutory provisions
 Adequate green belt within the plant boundary.
 7. 2. C I V IL C O N S T R U C T IO N S

As discussed in earlier chapter, the project includes Godown and Milling Section
for Atta Chakki produces for about 4800 MT per annum. Thus the master plan
and civil construction includes facility for storing of grains and as well as for
storing and grading the raw materials and finished goods.
The project has taken up elaborate construction to install various production
and other facilities and activities as mentioned earlier. The major civil
constructions built for the purpose and their respective cost details are hereunder.

7.3 . L A N D C O S T, O W N E R S H IP S T A T U S A N D S T A T U T O R Y A
PPROVALS:

The land has been chosen for proposed plant would be self-owned by one
of the firm managing partner and there would be no question of Rental
for use of Land for proposed plant.
Statutory approvals status: -
Sl no. Description Status
1. Civil/Building construction permissions Not Applicable
from the competent authority
2. Consent to establish from Bihar Pollution Under process
Control Board
3. (BPCB) from Land Revenue department for
Consent Not Applicable
change in land use from agriculture to
industrial
4. Consent from department of Not applicable
Horticulture for construction of food
 7.4 M A S T E R P L A
N

(a) The Master Plan has been prepared in accordance with the requirements
of the project based on the requirements of project component, the facilities
are planned and user amenities integrated.

(b) The planning of the building structures and infrastructure facilities has
been done keeping in view the major attributes like entrance to the plot,
vehicular movement inside the plot and other functional requirements.
The location of the various units in the site has been fixed to facilitate
smooth process flow.
(c) The Master plan meets all plot development and planning norms of
“Bihar Regional Development Authority Act (amendment) of
2006/Bihar
Municipal A c t of 2007”. All building setbacks, built-up area and open
space have been considered as per local bye-laws applicable for industrial
buildings.

Sl No. Particula Coverage area

rs (in sq.ft
1. Open Shade Area 75x26
2. Chakki Atta processing centre 70x26
3 Godown 1 55x26
4. Office /Accounts Section (1st
Floor) 30x26
5. Labour quarter
30x26
7. Open area including roads 100x26

The entire built-up area has a land filling of 2ft in addition to the
average land filling of 3ft. This 2ft land filling has been included in the
civil cost of all the buildings.
Note: In addition to this electrification charges are `3.75 Lacs.
Thus, the total cost of civil work (Buildings) is estimated at ` 18.00 Lacs in which
Rs. 3 Lakhs has been already invested.
All the civil item rates for building works are based on S.O.R. of building
dept. of GoB

7. 5. E S E N T IA L I N F R A S T R U C T U R E

 Boundary wall & land development:

A boundary wall of >2.15m height with an entrance gate has been
constructed all around the ….. Sq fts of available land. 3’ of avg.
earth filling has been done at project site. The land needs an average
3’ of land filling to counter any probable flooding in rainy season
and keep the level of grain storage godown higher than the
approach road. This is very much needed as the unit proposes to
store food grains and flooding or dampening will not only destroy
the quality but may also hamper the further usability of the grains..
 Internal Plant Roads, water supply & drainage system:
The facility has >3.70m wide concrete road around the premises as per the
specifications in drawing. Internal roads with such specifications are very
much essential for handling the traffic of grain carrying trucks of
immense weight. The better quality of roads will enhance faster movement
of trucks. This road runs b/w various building components. Water supply
lines, storm water drain lines; fire hydrant lines have been built.
 Power Supply:
BSEB connection is yet to be taken by the unit although the promoters
have proposed to use a 250 KVA silent DG set as a backup for power
connection.
 Cost of Essential Infrastructure:
As per the cost estimation, the total cost of Common Infrastructure is
estimated at 26.10 including electrification work and installation parts.
 The total cost of civil work is `26.10 Lacks

7. 6 . P R O J E C T P LA N N IN G
The project is under construction stage.

7. 7 . Q U A L I T Y C O N T R O L D U R I N G E X E C U T I O
N
During the civil construction activities, the quality of the work is being
maintained with good workmanship and good quality of building/construction
materials.

7. 8. S A F E T Y A S P E C T S
During the entire civil construction activities and during erection & commissioning
of equipments, proper safety precautions will be taken and the safe working
conditions will be maintained. Better housekeeping and hygienic working
environment will be maintained at project site.

7. 9. C A R E / P R E C A U T I O N S T O B E T A K E N A T P R O J E C
T SITE
a) All concreting/RCC work shall be done with concrete mixer machine and the
same shall be properly compacted by needle vibrator.
b) There shall be sufficient days of curing after all types of concreting work, also
in summer; cover these s t r u c t u r a l m e m b e r s ( beams/columns/slabs) w i t h
h e s s i a n c l o t h s a f t e r curing and continue this curing process.
c) RCC beam/band has to be provided at each 7-8’ intervals in brick wall
construction, if its height
exceeds 10’.
d) Asbestos (prohibited roofing material in residential sense) shall not be used
in living areas. e) There shall be arrangement of sufficient no. of fire-
extinguishers at working site.
f) First aid facility/kit shall be available at project site.
g) There shall be a designated place/shelter for worker’s meal.
h) There shall be a designated place/shelter for urinal/W.C.
i) At project site, all emergency phone numbers must be posted
and known by all.
ii) j) Landscaping is desirable at the industrial unit.
 8. PROJECT COST AND MEANS OF FINANCE

The different financial aspects of the project are dealt in detail in this chapter. It
explains the cost of the project, the source of funds employed and the financial analysis
of the project to understand its long term viability and sustainability.

8.1. PROJECT COST

Once completed the project is estimated to cost around ` 136.45 Lacs.

Table: Detailed break-up of the cost of the project is given below:
PARTICULARS Rs in Lakhs
OU
Factory Building, Atta Chakki & Godown 18.00
Plant & Machinery 42.65
Electric Transformer & DG Set
7.35
Errection & Commissioning 0.75
Contingency 0.70
Working Capital Requirements 50.00

Margin Money for Working Capital 16.75

TOTAL PROJECT COST 136.45
86.20

8.1.1.
BUILDINGS
The total cost of Buildings and civil infrastructure creation is ` 18 Lacs. A priced
civil estimate has been obtained with i/c costs of other facilities of building
works. Sanitation, plumbing and internal electrification charges has been included
in the civil estimate. The rates are as per the SOR, Building Construction Dept. of
Govt. of Bihar.
The entire built-up area has a land filling of 2ft in addition to the average land
filling of 3ft. This 2ft land filling has been included in the civil cost of all the
buildings.
 8.1.3 PLANT AND MACHINERY
Promoters have proposed to install plant and machinery worth `42.65 Lacs.
The entire plant and machinery is for sorting and grading of food grains and
has to be procured from a single supplier i. e. Flour Tech Engineers Private
Limited.
The plant and machineries procured by the promoters are suitable for the design
of the project.

8.1.4.
WORKING CAPITAL
The project shall deal with trading of various Atta Chakki and Agri inputs.
Promoters propose to store and sell various food grains after sorting and
grading them at the proposed sorting grading centre at the proposed unit.
The cash realization period of all these activities differ from each other and
shall require substantial investment in working capital.

Table: Working capital for the unit at 90% capacity utilization would be as follow:
PARTICULARS AMOUNT (`in Lacs)

Margin Money 16.75

WC Borrowing 50.25
Total Working Capital 67.00

8.1.6.
CONTINGENCY
As most of the civil construction and all the plant and machinery installation are yet
to take place,
5% contingency has been taken for the civil construction, plant & machinery
and miscellaneous fixed assets cost.
 8.2. M E A N S O F F IN
ANCE
The project envisaged to be financed through a mix of equity, and term loans.

Table: The means of finance for the project:

Means of Finance Percentage of Project Cost Amount (` In
Lacs)
Equity 47.70% 41.12
Debt 52.30% 45.08
Total 86.20

A. Promoters propose to bring ` 145.70 Lacs as their equity contribution.

This includes `
24.37 Lacs towards Capital Expenditure and ` 16.75 Lacs as margin
money for Working Capital @ 25% of total working capital requirement in the
second year of operation. Looking at the net worth details of the promoters, it is
observed that the promoters either would have to dilute some of their
immovable assets or they might have to bring in some more shareholders or
both so as to meet the requirement towards this end.

B. Promoters propose to bring in debt to the tune of ` 45.08 Lac

 8.3. OPERATING COST ASSUM PTIONS
The key operating assumptions underlying ASP Bhog Flour Mills business plan
are described below.
 300 days per annum for Wheat grain storage;
 At full capacity utilization in grain storage from the first year;
 300 working days per annum for trading and other business activities.

8.3.1. RAW MATERIAL C OST

At 100% capacity utilization the total cost of purchase for agri outputs shall be
approximately `
100 Lacs based on the average prices of the commodities.

8.3.1.2.
POWER & FUEL COST
Total power load proposed for the units shall be around 50 KVA. The unit will be
taking its power connection from the transformer of BSEB, adjacent to the site
with a boundary..

It is also assumed that it would require 20 Liters of fuel/hour of running. The

requirement to run
DG set of 50 KVA is only for 4 hours per day. The Cost of diesel has been
assumed to be ` 12/Liter.

8.3.1.3. WATER COST

It is assumed that total water requirement for industrial purpose will be 50
Liters/MT of stored grains and for personal usage it would be 60
Liters/person/day. Water cost has been assumed at `25/KL. Accordingly, the cost
has come around `0.13 Lacs.

8.3.1.4. EMPLOYEE COS T

The employee cost has been estimated based on an organization structure
proposed by the company which takes into account the managerial and the support
staff required for its proposed level of operations. It is estimated that total
manpower cost would be approximately ` 12 Lacs per annum. Details of the
manpower have been provided in Chapter-5.

The manpower planning has been done after analyzing similar units. Manpower
will be sufficient to carry out the operation.

8.3.1.5. COST OF INSU RANCE

The cost of insurance has been assumed as 1% of cost of building, Plant &
Machinery & Miscellaneous Fixed Assets.

8.3.1.6. ADMIN & SELL ING OVERHEADS

Admin & Selling Overhead Cost has been assumed @ 0.10
% of revenues.

8 . 4. F IN A N C I A L A S S U M P T I O N S

8.4.1 TAXES
Income Tax rate is assumed as flat 33.99%

8.4.2.
DEPRECIATION RATES
Depreciation has been provided on straight-line method, as per the Companies
Act, 1956, for book purposes, whereas for tax purposes, written down value
method is employed. The rate of depreciation for plant & machinery and
miscellaneous fixed assets is taken as 10% for book purposes and 15% for
tax purposes.

8.4.3. INTEREST
The rate of interest is assumed to be charged to the Project at 11.00% p.a.
for Term Loan. Arepayment period of 7 years including a moratorium of 1
year has been considered for financial projections.

8 . 5. REVENUE ASSUMPTIONS
It is expected that at 60 % capacity utilization unit will attain in its 1st
year and the unit shall be earning sufficient profit which includes the entire
revenue generated from Sale of Atta trading, Agri output trading, Rentals and
grain warehouse. The projections are tabulated in the subsequent table:

As described earlier, the installation of the proposed unit comprises getting

necessary approvals, construction of plant building, erection of plant and
equipments, preparation of ancillary buildings, utilities and services and
auxiliary facilities. This thus is an extensive task demanding coordination of
various activities.

Considering the delivery period of major equipment and the time required for
construction of buildings and miscellaneous items and for installation of plant
and machineries and finally the targeted commencement deadline.