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 DETAILED PROJECT REPORT FOR
M/S. Kathmandu Goat Farm
(A goat farming Project)

Bus/Office:
Address
Ward no-2
Chandeswori, Tokha
This project has been designed to establish a goat farm at Tokha, Kathmandu. It is a
Proprietorship concern owned by Hari Upreti The proprietor hail from business family and is
Now it is
having proposed in
experience tothis
startline
operation with financial assistance from a suitable commercial bank.
of business.
Hence this
project Report is presented.

Prepared by:
Development Alliance Nepal
Business Consultant
Maitidevi, Kathmandu

e-mail : [email protected]
 M/S. Kathmandu Goat Farm

I N D E X

SL. CONTENTS PAGES

CHAPTER :
1 PROJECT AT GLANCE 1
2 COST OF THE PROJECT AND MEANS OF FINANCE 2
3 PROJECTIONS AND PROFITABILITY STATEMENT 3
4 CASH - FLOW STATEMENT 4
5 BALANCE SHEET 5

ANNEXURES
1 DEPRECIATION SCHEDULE 6
2 BREAK EVEN ANALYSIS 7
3 INTEREST SCHEDULE 8
4 DEBT COVERAGE RATIO 9
5 ANALYSIS ON RETURN ON INVESTMENT 10
6 ASSUMPTION AND WORKING NOTES 11
 M/S. Kathmandu Goat Farm
CHAPTER NO. 1
PROJECT AT GLANCE :
1 Name : M/S. Kathmandu Goat Farm
2 Address : Reg.Office: Ward No-2, Chandeswori, Tokha
Project Area: Ward No-2, Chandeswori, Tokha

3 Nature of Business : Goat Farming

4 Constitution : Proprietorship
Proprietor : Hari Upreti

5 Cost of the project :

Particulars Total
Operational Cost (301,810)
Furniture & Fittings 25,000
Generator & Office Equipemnts 10,000
Deposits -
Interest during the impl. Period 266,875
Total 6,500,000

Means of Finance :
Particulars Total
Proprietor Contribution 900,000
Term Loan from Bank / Institution 5,600,000

Total 6,500,000

6 Debt Equity Ratio : 6.22 :1

7 Debt Coverage Ratio : 0.12
8 Gross Profit Ratio : 5.37 First Year Operation.
9 Net Profit Ratio : 2.32 First Year Operation.
10 Employment Potential : 3
11 Return on Investment : 10.36 %

Page 5 of 11
 M/S. Kathmandu Goat Farm
STATEMENT NO. 1

COST OF THE PROJECT AND MEANS OF FINANCE:

The project cost has been estimated at Rs. 6,500,000.00

Brief details of the project cost is given below

Cost of the project :

Particulars Total
Operational Cost (301,810)
Furniture & Fittings 25,000
Generator & Office Equipemnts 10,000
Deposits -
Interest during the impl. Period 266,875
Total 6,500,000

Means of Finance :
Particulars Total
Promoters Contribution 900,000
Term Loan from Bank / Institution 5,600,000
Total 6,500,000.00
 M/S. Kathmandu Goat Farm
STATEMENT NO.2

PROJECTIONS AND PROFITABILITY STATEMENT

Operating years
PARTICULARS
0 1 2 3 4 5 6 7
A.INCOME:
Income from Trading Activities 9,000,000 10,800,000 12,960,000 15,552,000 18,662,400 22,394,880 26,873,856 32,248,627
(150 nos*45000)
(The Quanities Sold are expected to increase by 20%
every year)
9,000,000 10,800,000 12,960,000 15,552,000 18,662,400 22,394,880 26,873,856 32,248,627
B. EXPENSES:
Material Purchase Cost and Related cost
(After Adjusting closing stock) 8,100,000 9,720,000 11,664,000 13,996,800 16,796,160 20,155,392 24,186,470 29,023,764
Salary 540,000 567,000 595,350 625,118 656,373 689,192 723,652 759,834
Power Charges 120 126 132 139 146 153 161 169
Depreciation 2,625 4,856 4,128 3,509 2,982 2,535 2,155 1,832
Cost of Operations 8,642,745 10,291,982 12,263,610 14,625,565 17,455,662 20,847,272 24,912,438 29,785,599

C. Gross Profit [ A - B ] 357,255 508,018 696,390 926,435 1,206,738 1,547,608 1,961,418 2,463,028

D. Interest: on term loan 266,875 231,875 196,875 161,875 126,875 91,875 21,875 -
266,875 231,875 196,875 161,875 126,875 91,875 21,875 -

E. Selling & Admin. Exp. 180,000 189,000 198,450 208,373 218,791 229,731 241,217 253,278

F. Profit before Tax[ C - (D+E) ] (89,620) 87,143 301,065 556,187 861,072 1,226,002 1,698,326 2,209,750

G. Income Tax (26,886) 26,143 90,319 166,856 258,322 367,801 509,498 662,925

H. Profit after Tax ( F-G ) (62,734) 61,000 210,745 389,331 602,751 858,201 1,188,828 1,546,825

I. Depreciation added back 2,625 4,856 4,128 3,509 2,982 2,535 2,155 1,832

J. Cash Accruals ( H + I ) (60,109) 65,856 214,873 392,840 605,733 860,736 1,190,983 1,548,657

L. Repayment of Term Loan 350,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000

M. Net Cash A'ble (J - K)) (410,109) (634,144) (485,127) (307,160) (94,267) 160,736 490,983 848,657
 M/S. Kathmandu Goat Farm
STATEMENT No.3

CASH - FLOW STATEMENT :

Operating Years
PARTICULARS
0 1 2 3 4 5 6 7
A. Source of Funds :
Profit after Tax (62,734) 61,000 210,745 389,331 602,751 858,201 1,188,828 1,546,825
Depreciation 2,625 4,856 4,128 3,509 2,982 2,535 2,155 1,832
Term Loan from Bank 5,600,000
Promoters Contribution 900,000 - - - - - - -

TOTAL OF ' A ' 6,439,891 65,856 214,873 392,840 605,733 860,736 1,190,983 1,548,657

B. Application of Funds :
Furniture & Fittings 25,000 - - - - - - -
Gen & Office Equipts, 10,000
Deposits -
Repayment of loan 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000

TOTAL OF ' B ' 735,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000

C. Opening Balance - 5,704,891 5,070,747 4,585,620 4,278,460 4,184,193 4,344,930 4,835,913

D. Net surplus ( A - B ) 5,704,891 (634,144) (485,127) (307,160) (94,267) 160,736 490,983 848,657

E. Closing Balance 5,704,891 5,070,747 4,585,620 4,278,460 4,184,193 4,344,930 4,835,913 5,684,569
 M/S. Kathmandu Goat Farm
STATEMENT No.4

BALANCE SHEET

Operating Years
PARTICULARS
0 1 2 3 4 5 6 7

A. LIABILITIES :
Capital Account 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000
Reserves & Surplus (62,734) (1,734) 209,011 598,343 1,201,093 2,059,295 3,248,123 4,794,948
Secured Loan 4,900,000 4,200,000 3,500,000 2,800,000 2,100,000 1,400,000 700,000 -

TOTAL 5,737,266 5,098,266 4,609,011 4,298,343 4,201,093 4,359,295 4,848,123 5,694,948

B. ASSETS :
Fixed Assets 32,375 27,519 23,391 19,882 16,900 14,365 12,210 10,379
Current Assets
Cash & Bank 5,704,891 5,070,747 4,585,620 4,278,460 4,184,193 4,344,930 4,835,913 5,684,569
Deposits - - - - - - - -

TOTAL 5,737,266 5,098,266 4,609,011 4,298,343 4,201,093 4,359,295 4,848,123 5,694,948

 M/S. Kathmandu Goat Farm

ANNEXURE NO.1

DEPRECIATION SCHEDULE:
WDV at the year end
PARTICULARS
0 1 2 3 4 5 6 7
1. Furniture & Fittings 25,000 23,125 19,656 16,708 14,202 12,071 10,261 8,722
Depreciation @ 15% 1,875 3,469 2,948 2,506 2,130 1,811 1,539 1,308
WDV 23,125 19,656 16,708 14,202 12,071 10,261 8,722 7,413

4. Genr & Office Equipts 10,000 9,250 7,863 6,683 5,681 4,829 4,104 3,489
Depreciation @ 15% 750 1,388 1,179 1,002 852 724 616 523
WDV 9,250 7,863 6,683 5,681 4,829 4,104 3,489 2,965

Total Assets
[1+2+3+4] 32,375 27,519 23,391 19,882 16,900 14,365 12,210 10,379

Total Depreciation
[1+2+3+4] 2,625 4,856 4,128 3,509 2,982 2,535 2,155 1,832
 M/S. Kathmandu Goat Farm
ANNEXURE NO.2

BREAK-EVEN ANALYSIS
Years
(A HDPE/PP Fabrics Project)
0 1 2 3 4 5 6 7
A. Receipts 9,000,000 10,800,000 12,960,000 15,552,000 18,662,400 22,394,880 26,873,856 32,248,627

B. Variable cost: 8,642,745 10,291,982 12,263,610 14,625,565 17,455,662 20,847,272 24,912,438 29,785,599

D. Fixed costs:
Depreciation 2,625 4,856 4,128 3,509 2,982 2,535 2,155 1,832
Interest on Term Loan 266,875 231,875 196,875 161,875 126,875 91,875 56,875 21,875
Administration Expenses 180,000 189,000 198,450 208,373 218,791 229,731 241,217 253,278
449,500 425,731 399,453 373,756 348,648 324,141 300,247 276,985

E. Contribution [ B - C ] 357,255 508,018 696,390 926,435 1,206,738 1,547,608 1,961,418 2,463,028

F. P.V.Ratio [ E/B x 100 ] 3.97 4.70 5.37 5.96 6.47 6.91 7.30 7.64

G. Break - even [ Value ]

[ D / F x 100 ] 11,323,844 9,050,663 7,433,922 6,274,219 5,391,904 4,690,524 4,113,754 3,626,582

H. Cash Break Even 11,257,715 8,947,424 7,357,103 6,215,319 5,345,781 4,653,841 4,084,232 3,602,602
[ Without Depreciation]

126% 84% 57% 40% 29% 21% 15% 11%

 M/S. Kathmandu Goat Farm
ANNEXURE NO.3

INTEREST SCHEDULE :
QUARTERS OPENING LOAN CLOSING INTEREST INTEREST
BALANCE REPAYMENT BALANCE PER QTR. P.A.
0 1 5,600,000 175,000 5,425,000 70,000
2 5,425,000 175,000 5,250,000 67,813
3 5,250,000 175,000 5,075,000 65,625
4 5,075,000 175,000 4,900,000 63,438 266875
I 1 4,900,000 175,000 4,725,000 61,250
2 4,725,000 175,000 4,550,000 59,063
3 4,550,000 175,000 4,375,000 56,875
4 4,375,000 175,000 4,200,000 54,688 231875
II 1 4,200,000 175,000 4,025,000 52,500
2 4,025,000 175,000 3,850,000 50,313
3 3,850,000 175,000 3,675,000 48,125
4 3,675,000 175,000 3,500,000 45,938 196875
III 1 3,500,000 175,000 3,325,000 43,750
2 3,325,000 175,000 3,150,000 41,563
3 3,150,000 175,000 2,975,000 39,375
4 2,975,000 175,000 2,800,000 37,188 161875
IV 5 2,800,000 175,000 2,625,000 35,000
6 2,625,000 175,000 2,450,000 32,813
7 2,450,000 175,000 2,275,000 30,625
8 2,275,000 175,000 2,100,000 28,438 126875
VI 9 2,100,000 175,000 1,925,000 26,250
10 1,925,000 175,000 1,750,000 24,063
11 1,750,000 175,000 1,575,000 21,875
12 1,575,000 175,000 1,400,000 19,688 91875
VII 13 1,400,000 175,000 1,225,000 17,500
14 1,225,000 175,000 1,050,000 15,313
15 1,050,000 175,000 875,000 13,125
16 875,000 175,000 700,000 10,938 56875
VIII 17 700,000 175,000 525,000 8,750
18 525,000 175,000 350,000 6,563
19 350,000 175,000 175,000 4,375
20 175,000 175,000 - 2,188 21875
NOTE : Interest on Term Loan is calculated at 5% per annum liquidated in
8 year
 M/S. Kathmandu Goat Farm
ANNEXURE NO.4

DEBT SERVICE COVERAGE RATIO :

Operating Years
0 1 2 3 4 5 6 7
A. SOURCES :
Profit after tax (62,734) 61,000 210,745 389,331 602,751 858,201 1,188,828 1,546,825
Depreciation 2,625 4,856 4,128 3,509 2,982 2,535 2,155 1,832
Interest on term loan 266,875 231,875 196,875 161,875 126,875 91,875 21,875 -
TOTAL OF ' A ' 206,766 297,731 411,748 554,715 732,608 952,611 1,212,858 1,548,657

B DEBT :
Term loan installment 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000
Interest on Term Loan 266,875 231,875 196,875 161,875 126,875 91,875 21,875 -

TOTAL OF ' B ' 966,875 931,875 896,875 861,875 826,875 791,875 721,875 700,000

C Debt Service Coverage Ratio

DSCR [A/B] 0.21 0.32 0.46 0.64 0.89 1.20 1.68 2.21

D Average DSCR 0.12

 M/S. Kathmandu Goat Farm
ANNEXURE NO.5

ANALYSIS OF RETURN ON INVESTMENT :

1. Return on Investment = Average Return x 100

Capital Employed

2. Return = Profit before tax + Depreciation + Interest on term loan

3. Capital Employed = Cost of the Project

RETURN ON INVESTMENT :

OPERTING YEARS
PARTICULARS
0 1 2 3 4 5 6 7
Profit before tax (89,620) 87,143 301,065 556,187 861,072 1,226,002 1,698,326 2,209,750

Depreciation 2,625 4,856 4,128 3,509 2,982 2,535 2,155 1,832

Interest on Term Loan 266,875 231,875 196,875 161,875 126,875 91,875 21,875 -

179,880 323,874 502,068 721,571 990,930 1,320,412 1,722,356 2,211,582

# Average Return 673,122

# Capital Employed 6,500,000

# Return on Investment 10.36 %

 M/S. Kathmandu Goat Farm
ANNEXURE NO.6
Assumption and workings notes to the Financial Statements of the Project Report:
1 Revenue In Rs
Sale of Goats
Total Quantity Estimated to be sold for a month : 20
Sale value of each nos : 30000
Monthly Revenue : 600,000.00
Yearly Revenue 7,200,000.00
First year Revenue for 6 months 3,600,000.00
Every year the Revenue is estimated to increase
by 20%.

2 Material Purchase Costs

The material is estimated to cost at 90% of sales price.
The cost for 1 year is 3600000*90% = 3240000

3 Salary
S.No. Category of Employee No.of Salary per Salary per
Employees Month Annuam
1 Managers 1 25,000.00 300,000.00
2 Helpers 1 20,000.00 240,000.00
3 Accountant 0 5,000.00 -
Total 2 540,000.00
Note: Increament in salary is taken at 5% per annum

4 Power
Power Charges is estimated at Rs.1000/- per month and provision made for increase
in rates @ 5% per annuam

5 Depreciation:
Depreciation is calculated at the rates prescribed under
the Income Tax Act. Separate Annexure made

6 Interest:
Interest on term loan is calculated at 5% per annum
Term loan will be repaid in 4 year

7 Selling and Administration Expenses:

Selling expenses includes sales commission, Post & Telephone expenses and other
Office maintenance expenses.
It is estimated at Rs.15,000/- per month and provision made for increase in cost
at 5% per annuam

Page 11 of 11