final project sarwesh_kasat roll no_18 2003

8/7/2019 FINAL PROJECT SARWESH_KASAT ROLL NO_18 2003

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FeasibilityStudyofBiodieselPlant

i

ChetanasR.K.InstituteofManagementandResearch

FEASIBILITY STUDY OF BIODIESEL PLANT

Submitted by

Mr. Sarwesh O. Kasat

Under the guidance of

Mr. Suhas Gharat

PROJECT SUBMITTED IN FULL COMPLETION OF MMS TO

Chetanas R. K. Institute of Management & Research

Bandra (East), Mumbai 400051

MAY 2010


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DECLARATIONThis is to declare that the study presented by me to Chetanas Institute of Management and

Research, in full completion of MMS degree under the title FEASIBILITY STUDY OF

BIODIESEL PLANT has been accomplished under the guidance of Mr. Suhas Gharat.

Signature

Sarwesh O. Kasat


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CERTIFICATEThis is to certify that the study presented by SARWESH O KASAT to Chetanas Institute of

Management and Research, in full completion of MMS degree under the title Feasibility Study

of Biodiesel Plant has been done under the guidance of Mr. Suhas Gharat.

The project is in the nature of original work that has not so far been submitted for any program

of Chetanas Institute of Management & Research or any other University / Institute.

References of work and related sources of information have been given at the end.

Signature of the Guide Signature of Director

Mr. Suhas Gharat Dr. Firdos T. Shroff


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ACKNOWLEDGEMENTIt gives me great pleasure to present before you, my final semester report on Feasibility Study

of Biodiesel Plant for the year 2008-2010.

I express my sincere gratitude towards Chetanas Ramprasad Khandelwal Institute of

Management and Research, for giving me an opportunity to work on this report.

I take this opportunity to thank my respected project guide Mr. Suhas Gharat, for giving me an

opportunity to undertake this project. His guidance has been invaluable to me while preparing

this report.

I also thank all those who helped me directly or indirectly in completing this project.

Sarwesh O. Kasat


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TABLE OF CONTENTS

1. Executive Summary 012. Introduction 02

2.1 Objective of Study2.2 Scope2.3 Research Methodology

3.

Literature Review 04

3.1 Background of Biodeisel3.2 Market Survey and Demand-Supply Position3.3 Flow Chart3.4 Capital Expenditure Planning Phase3.5 Cost Concept3.6 Cash Flow Statement3.7 Working Capital

4. Findings and Recommendations 145. Conclusion 226. Bibliography 23


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EXECUTIVESUMMARYTohaveconfidenceistohavewings

Financialmanagementisthebackboneofeverybusinessentity.Financeisactingasabloodfor

theorganizationandefficient circulationof thesamemake thesystemrobust.Throughout theglobe

business leaders act proactively in their financial planning which help to make concrete business

foundation.

Foranybusinessstartupweneedtoworkoutallthefinancialaspects.Financialfeasibilityhelps

in takingdecisionwhether togo for theproject.Financialhelps inknowing the future cash flowand

profitgenerationbydeterminingthedemandfortheproductbasedonextensivemarketresearch.

InthisprojectreportIhavetriedtoworkoutallthefinancialwhichareneededforsettingupa

BIODIESELPLANT.Theprojectprovidesathroughindepthknowledgeaboutvariousparameterswhich

an entrepreneur needs to consider while starting a biodiesel plant. The project also covers the

informationaboutBiodiesel,itsproductionprocess,itsbyproductanditsusageasaneffectivefuel.

Various financial ratios like Debt to equity ratio, Debt service coverage ratio, Return on

Investment,etchavebeencalculatetogettheknowledgeabouttheconditionoffinancialplanning in

nutshell.Working capitalwhich act as a life line foranyproduction systemhavebeen calculate and

related information have been put in for through understanding. Rawmaterialmanagement is also

discussed

along

with

its

supply

sources

and

future

availability.

The main objective of project revolves around checking the financial feasibility of Biodiesel

plant. Thefinancialfeasibilityofbiodieselplanthadbeenprovedtobegoodandriskfreeattheendof

thisprojectforwhichallthenecessarycalculationhasbeengivenalongwithotherrealtimeproof.


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INTRODUCTIONObjectiveofProject:

Theprojectgives theperspectiveabout thebiodieselasaproduct. Ithighlights the financial

feasibilityaboutcommissioningthebiodieselplant.Projectgivesustheoverviewaboutwhichfinancials

needtobeconsiderwhilesettingupanindustryandalsothevariousfinancialmeasurementswhichwe

oneshouldconsiderforfinancialfeasibilityoftheproject.

Scopeoftheproject:

Forthebiodieselplantsetupthiswillactasthereadyreferenceandwillprovidetheinitialhelp

fortheentrepreneurswhowanttoforayintothisbusiness.

Biodieselactsasthealternatefuel.Asperthecurrentscenariothewayweareconsumingthe

presentresourcesweneed todevelopvariousalternate fuel tosatisfy theever increasingdemandof

fuel.Thusinthecomingfuturethedemandforwillbethere.Sothereisthescopeforbiodieselinthe

future.

ResearchMethodology:

Data:

PrimarySource:

Interactionwiththefollowingpersons:

Dr.SanjayBhoyarprofessoratPDKV,Akola Dr.SuhasZambhereatechnicalconsultantforBiodieselplant

SecondarySource:

Different articles from variouswebsites aswell as variousweb search engine acted asa thesourceforthesecondarydatasource.Theinformationabouttherawmaterialiscollectedfrom

theinternetaswellaswiththeinteractionwiththeindustrypersons.

Limitationofthedata:

All the limitationof the secondarydata source is applicable to thisproject.Whereas for theprimarydatathesamplesizeistheonlylimitationwhichisverysmall.


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LITERATUREREVIEWBACKGROUNDOFBIODIESEL

Biodiesel fuel canbemade fromneworused vegetableoilsandanimal fats,whicharenontoxic, biodegradable, renewable resources. Fats and oils are chemically reacted with an alcohol

(methanol is the usual choice) to produce chemical compounds known as fatty acid methyl esters.

Biodiesel is thenamegiven to theseesterswhen theyare intended foruseas fuel.Glycerol (used in

pharmaceuticalsand cosmetics,amongothermarkets) isproducedasa coproduct.Biodiesel canbe

producedbyavarietyofesterificationtechnologies.Theoilsandfatsarefilteredandpreprocessedto

removewaterandcontaminants. If free fattyacidsarepresent, theycanberemovedor transformed

intobiodieselusing specialpretreatment technologies.Thepretreatedoilsand fatsare thenmixed

with an alcohol (usually methanol) and a catalyst (usually sodium or potassium hydroxide). The oil

molecules (triglycerides) are broken apart and reformed into esters and glycerol, which are then

separatedfromeachotherandpurified.Approximately55%ofthebiodieselindustrycanuseanyfator

oilfeedstock,includingrecycledcookingoils.Theotherhalfoftheindustryislimitedtovegetableoils,

the leastexpensiveofwhich is Jatropaoil.The Jatropaoil industryhasbeen thedriving forcebehind

biodiesel commercialization because of large production capacity, product surpluses, and declining

prices.Similarissuesapplytotherecycledoilsandanimalfatsindustry,eventhoughthesefeedstockare

lessexpensivethanJatropaoils.Easedonthecombinedresourcesofbothindustries,thereisenoughof

thefeedstocktosupply1.9billiongallonsofbiodiesel(underpoliciesdesignedtoencouragebiodiesel

use).BiodieselBenefits

Biodieselisasubstituteorextenderfortraditionalpetroleumdieselandyoudon'tneedspecial

pumpsorhighpressureequipmentforfueling.Inaddition,itcanbeusedinconventionaldieselengines,

soyoudontneedtobuyspecialvehiclesorenginestorunonbiodiesel.

Scientistsbelieve carbondioxide isoneof themain greenhouse gases contributing to global

warming.Heat biodiesel (100 percent biodiesel) reduces carbon dioxide emissions bymore than 75

percentoverpetroleumdiesel.Usingablendof20percentbiodieselreducescarbondioxideemissions

by15percent.

Biodieselalsoproducesfewerparticulate,carbonmonoxide,andsulphurdioxideemissions,all

targetedaspublichealthrisksbytheEnvironmentalProtectionAgency.Sincebiodieselcanbeused in

conventionaldieselengines,therenewablefuelcandirectlyreplacepetroleumproducts;reducingthe

countrysdependenceonimportedoil.

Biodieselofferssafetybenefitsoverpetroleumdieselbecauseitismuchlesscombustible,with

aflashpointgreaterthan150C,comparedto77Cforpetroleumdiesel.Itissafetohandle,store,and

transport.

Biodiesel canhelp reduceourdependenceon foreignoilandhelpus leverageour fossil fuel

supplies.Itcanalsohelpreducegreenhousegasemissions,aswellaspublichealthrisksassociatedwith

air

pollution.

It

is

nontoxic

and

biodegradable.

Biodiesel

contains

only

trace

amounts

of

sulphur,

typically

less than thenewEPA standards thatwillgo intoeffect in2006 fordiesel fuel. It is safe tohandle,

transport,andstore,andhasahigherflashpointthanpetroleumdiesel.Itcanalsobe storedindiesel

tanksandpumpedwithregularequipmentexcept incolderweather,where tankheatersoragitators

may be required. Biodieselmixes readilywith petroleumdiesel at any blend level,making it a very

flexiblefueladditive.

Biodiesel isanoxygenated fuel,so itcontributes toamorecomplete fuelburnandagreatly

improvedemissionsprofile.Themorebiodieselusedinablend,thehighertheemissionreductions.One


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of theuniquebenefitsofbiodiesel is that it significantly reduces air toxic those are associatedwith

petroleumdieselexhaustandaresuspectedofcausingcancerandotherhumanhealthproblems.NO

emissionsareanexceptiontotherule,sincebiodieseltendstoincreaseNOemissions.Recentresearch

hasshownanumberofwaystomitigatethisproblem.

You can use pure biodiesel inmost enginesmade after 1994with some limitations. Engine

performance(fueleconomy,torque,andpower)canbelessthanthatofdieselby8%to15%,because

of the lowerenergy contentof thebiodiesel (121,000Btu compared to135,000Btu fordiesel fuel).

Consumers should be aware of potential cold weather problems during vehicle operation and fuel

storage.Consumersshouldalsowatchforobvioussignsofdamagearoundsealsandgaskets.Youcan

use pure biodiesel in older engines, but the seals and gaskets are more likely to be damaged by

biodiesel.Also,ithelpstostartoutwithacleanstoragetankifpurebiodieselisused.Mostpeopleusea

blend of 20% biodiesel with petroleum diesel (B20) to avoid the problems listed above. Engine

performancewithB20isvirtuallythesameaswithpetroleumdiesel.Problemsassociatedwithstorage,

seals andgaskets,and coldweather isminimal. Even very lowamountsofbiodiesel (1% to2%) can

providesubstantiallubricatingbenefitstopremiumdieselfuels.

Everygallonofbiodieseldisplaces0.95gallonsofpetroleumbaseddieseloveritslifecycle.Itis

also very energy efficient. For every unit of fossil energy used to produce biodiesel, 3.37 units of

biodieselenergyarecreated.Additionally,biodieselreduces theamountofcarbondioxide(CO)being

released into the atmosphere. It releases less fossilCOas compared to conventionaldiesel, and the

cropsused toproducebiodieselabsorb largeamountsofCOas theygrow.Andbecausebiodiesel is

nontoxic andbiodegradable, it is an excellent fuel foruse in fragile environments such as estuaries,

lakes,rivers,andnationalparks.

DESCRIPTION:

BioDiesel isamanufacturedproduct,slightlyyellow incolour,oily liquidwithaslightaromatic

odourandabittertaste.

APPLICATIONS:

It

is

commonly

used

as

fuel

for

stationary

diesel

engine

like

Pump

sets

and

other

agricultural

implementsandalsoinDieselcars.

STANDARDS:

Specifications for Biodiesel (B100): providedby the NationalBiodieselBoard. StandardSpecification forBiodieselFuel (B100)BlendStock forDistillateFuelsasprovidedby

ASTHInternational.

BIODIESELPRODUCTIONANDQUALITY:

NationalBiodieselBoard. BiodieselHandlingandUseGuidelines BiodieselHandlingandUseGuidelines Japaneseversion.

Pure biodiesel (B100) needs to meet the requirements of ASTH D6751 to avoid engine

operationalproblems.ToobtainacopyofASTH'sStandardSpecificationforBiodieselFuel(B100)Blend

StockforDistillateFuels,visittheASTHInternationalWebsite.Thistablesummarizestherequirements

for B100. Keep up with the latest biodiesel activities by reading the National Biodiesel Board's

newsletter,BiodieselBulletin.


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TRANSPORTINFORMATION:

Itishazardousforair,seaandroadtransport.

PERSONALPROTECTION:

Safetyglasses,adequateventilation.

CONSUMERSAFETY:

BioDiesel is used as substitute for Diesel and all safety precautions are same as that of

Petroleumdiesel.

ALTERNATIVEFUELSINCENTIVESANDLAWS:

EnergyPolicyAct(EPAct)FleetInformationandRegulations:

TheEnergyPolicyActof1992waspassedbyCongresstoreduceournation'sdependenceon

importedpetroleumbyrequiringcertainfleetstoacquirealternativefuelvehicles.Usethislinktolearn

moreabouttheEPActprograms.

Regulatoryreviewcompleted:OnHay2,2001,theDepartmentofEnergy(DOE)publishedinthe

FederalRegisterthecompletionofitsregulatoryreviewfortheBiodieselFuelUseCredit.Accordingto

the review,DOEdoesnot intend to initiate further rulemaking tomodifyprovisions in the final rule

publishedJanuary11,2001.EffectivedateoftheruleisApril13,2001.

BiodieselFinalRulepublishedon January11,2001 the finalrulemakingconcerning theuseof

biodiesel to fulfil EPAct requirements was published in the Federal Register. The final rule making

amendsTitlesIIIandVoftheEnergyPolicyActof1992(EPAct),givingbiodieselfuelusecredittofleets

thatwouldotherwisebe required topurchaseanalternative fuelled vehicle. If youare interested in

learningmoreaboutthefinalrulemaking,pleasedownloadthiscopyoftheFederalRegister(PDF145

KB)forJanuary11,2001.

MARKETSURVEYANDDEMANDSUPPLYPOSITION

Recenttrendsare indicativeoftremendous increase intheproductionofCommercialVehicles

and

the

consumption

of

Diesel.

The

import

bill

is

mounting

and

the

availability

is

going

down.

Hew

sourceswillhavetobedevelopedandnewunitshavetobeputupinthenextdecadetomanufacture

BioDieselwhichwillsubstituteimporteddieselinlargequantitiestomeetthedomesticdemandwhere

bycausingsmallerdrainofourlimitedsourcesofforeignexchange.Thegrowthofautomotiveindustry,

particularlyinthelast15years,hasbeenspectacular.Itisnotthemagnitudeofvolumeonly,butalso

thediversityofproducts(Commercialvehicle,cars,two/threewheelers),whichhavebeenimpressive.

Theproposedproduct,i.e.BioDieselalsoshowsagoodpotentialgrowthfordemand.

Thebiodiesel industry is relativelymature inEuropewith theEuropeanUnion (EU)being theworld leader in biodiesel production, producing1.4 billion gallons (5.3 billion litres) in2006,

mainly fromrapeseed (EuropeanBiodieselBoard,2007). In2006 totalproductioncapacity in

theEUwas3billiongallons(11.3billionlitres).TheEUhasmandatedarenewablefuelcontent

of5.75%ofmarketshareby2010,howeverthistargetisunlikelytobemet(Commissionofthe

EuropeanCommunities,2006).AnEUCommissionGreenPaper setsanevenmoreambitious

objectiveof20%substitutionof conventional fuelsbyalternative fuels in the road transport

sectorby2020(CommissionoftheEuropeanCommunities,2006).

USbiodieselproductionin2006was250milliongallons(950millionlitres),withatotal

productioncapacityof1.4billiongallons(5.3billionlitres).IntheUS,smallproducerscanqualify

fora10centpergallontaxcredit forupto15milliongallonsofbiodieselproduced.TheU.S.

FederalGovernment'sRenewableFuelsStandardtargets7.5billiongallons(23.4billionlitres)of


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renewable fuels by 2012 (Yacobucci, 2007). Canadian biodiesel production is limited and is

estimated to be between 30 to 90 million litres per annum (Agra, 2006). The proposed

renewable fuels standard inCanada calls fora2% renewable content indieselby 2012.The

presenttotalproductioninIndia,ofBioDieselisestimatedtobe30,000Kilolitresperyear.

Futuredemand:ThemajoruserofBioDieselwillbesmallfarmersaswellasforblendingwithdiesel in

petroleumrefinery.ThedemandfortheproductwillgrowwiththeincreaseinproductionofOil

Engines. Due to shortage and irregular supply of electrical power, the growth rate for oil

engines, isexpected tobeveryhigh in coming years for stateswhereelectricalpower isnot

easilyavailable. Lookingat the tremendousgrowth inAutomotiveandStationaryOilEngines,

whichisprojectedtobe10%paintermsofnumberofnewengines,largequantitiesofDieseloil

willberequired.TakingintoaccountthepotentialforBioDieselunits,thetotalcapacityofthese

BioDieselplantswillsubstituteonlyatinyfractionofthetotaldieselrequirement.

Conclusion:Fromthedemandandsupplyposition,itappearsthatthereshouldbeagoodscopefor

anumberofnewventureswithacapacityof1to30Kilolitresperday.

RAWMATERIALSSUPPLIERS

Therawmaterialsare:

VegetableOil:TomanufactureoneKilolitresofBioDiesel,basicrawmaterial,nonediblevegetableoil,

required is1,050 litres.Soat100%capacityutilization,346,500 litresofnonediblevegetablewillbe

required,whichiseasilyavailablefromthelocalmanufacturersandsuppliers.

MethylAlcohol:TomanufactureoneKilolitresofBioDiesel,150litresofMethylAlcoholisrequired.At

100%capacityutilization,requirementofMethylAlcoholwillbe49,500bulklitres,whichcanprocured

easilyfromthemarket.CausticPotash:TomanufactureofoneKilolitresofBioDiesel,3.8kgsofcausticpotashisrequired.At100%capacityutilization,requirementofcausticpotashwillbe1254kgs,which

canprocuredeasilyfromthemarket.


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FLOW CHART


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CAPITAL EXPENDITURE PLANNING PHASES

Identification of investment opportunities. Development of forecasts of benefits and costs. Evaluation of net benefit.

Investment ideasInvestmentopportunitieshavetobeidentifiedorcreated.Mostproposals,inthenatureofcost

reductionorreplacementorprocessorproductimprovementtakeplaceatplantlevel.Thecontribution

of top level management in generating investment idea is generally confined to expansion or

diversificationproject.Theproposalforaddinganewprojectmaygeneratefrommarketingdepartment

orplantmanager

Long Term FinanceFinancing isbasicallydonebyafirmtosupportits Investments.EquityandDebtrepresentthe

twobroadsourcesoffinanceforabusinessfirm.EquityReferredtoasshareholdersfundsonbalance

sheets in India.Equity investorshaveaclaimon theresidualcash flowsof the firm.DividendPaid to

equity investors has to come out of the profit tax. Equity basically has an infinite life in terms of

maturity.Equityinvestorsenjoytheprerogativetocontroltheaffairsofthefirm.Debtsreferredtoas

loanfundsonbalancesheetsinIndia.Debtsinvestorsareentitledtoacontractualsetofthecashflows

(interestandprincipal). Interestpaid todebt investor representsa taxdeductibleexpense.Debthas

fixedmaturity.Debts investorsoften imposecertainrestrictionsonthewaythefirm isruntoprotect

theirinterests.

Equity Capital:Equity Capitals represent the ownership capital, as equity shareholders collectively own the

company. Theyenjoy the reward andbear the riskofownership. Firmsmay raise the equity capital

internally by retaining earnings. Alternatively, they could distribute the entire earnings to equity

shareholdersandraiseequitycapitalsexternallybyissuingnewshares.

In both cases, shareholders are providing funds to the firms to finance their capital

expenditures. Therefore, theequity shareholders require rateof returnwouldbe the samewhether

they supply funds by purchasing new shares or by foregoing dividends, which could have been

distributedtothem.Thereisadifferencebetweenretainedearningsandissueofequitysharesfromthe

firmspointofview.The firmmayhaveto issuenewsharesataprice lowerthan thecurrentmarket

price.Also,itmayhavetoincurfloatingcosts.Thus,externalequitywillcostmoretothefirmthanthe

internalequity.

Internal Accruals:The internal accruals of a firm consist of depreciation charges and retained earnings.

Depreciationrepresentstheallocationofcapitalexpendituretovariousperiodsoverwhichthecapital

expenditureisexpectedtobenefitthefirm.Retainedearningsarethatportionofequityearnings(profitaftertaxlesspreferencedividends)whichareploughedbackinthefirm.Becauseretainedearningsare

thesacrificemadebyequityshareholders,theyarereferredtoasinternalequity.Companiesnormally

retain30% to80%ofProfitafter tax financinggrowth. If you lookata sampleof corporatebalance

sheets youwill find that reserves and surplus (other than shared premium reserve and revaluation

reserve),whichessentiallyrepresentaccumulatedareanimportantsourceoflongtermfinancing.Even

this isanunderstatementof the contributionof retained earnings to long term financingbecause aportionofreservesandsurpluswouldhavebeencapitalizedbythefirmintheformofbonusshares.


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Preference Capital:PreferenceCapitalrepresentsahybridformoffinancingithassomecharacteristicsofequityand

someattributesofdebentures.Itresemblesequityinthefollowingways:

Preferencedividendispayableonlyoutofdistributableprofits. Preferencedividend isnotobligatorypayment(thepaymentofpreferencedividend isentirelywithinthediscretionofdirectors) Preferencedividendisnottax deductiblepayment.

PreferenceCapitalissimilartodebenturesinseveralways:

Thedividendrateofpreferencecapitalisfixed. Theclaimofpreferenceshareholdersispriortotheclaimofequityshareholders Preferenceshareholdersdonotnormallyenjoytherighttovote.

Term LoansSofarwelookedatthesourcesoffinancewhichfallunderthebroadcategoryofequityfinance

(or shareholders funds).Nowwe turnourattention to long termdebt. Firmsobtain long termdebt

mainlybyraisingtermloansorissuingdebentures.Historically,termloansgivenbyfinancialinstitutions

andbanksweretheprimarysourceoflongtermdebtforprivatefirmsandmostpublicfirms.Terms

loans,alsoreferredtoastermfinance,representsasourceofdebtfinancewhichisgenerallyrepayable

in less than 10 years. They are employed to finance acquisition of fixed assets andworking capital

margin. Term loans differ from short term bank loanswhich are employed to finance short term

workingcapitalneedandtendtobeselfliquidatingoveraperiodoftime,usuallylessthan1year.

DebenturesFormany firms,debenturesareaviablealternative to term loans.Akin topromissorynotes,

debenturesareinstrumentsforraisinglongtermdebt.Debentureholdersarethecreditorsofcompany.

Theobligationofacompanytowarditsdebentureholdersissimilartothatofaborrowerwhopromises

topay interest andprincipal at specified times.Debenturesoftenprovidemore flexibility than term

loansastheyoffergreatervarietyofchoiceswithrespecttomaturity,interestrate,security,repayment,

andspecialfeatures.

Short term financing.Identify theappropriatesourceof financing,given thecashconversioncycle: the inventory is

ideallyfinancedbycreditgrantedbythesupplier;however,itmaybenecessarytoutilizeabankloan(or

overdraft),orto"convertdebtorstocash"through"factoring".

COST CONCEPTSThe amount of expenditurewhether it is actual or notional incurred on or attributable to a

specifiedarticle,productoractivityisknownascost.Therearetwomethodsofascertainingcosts,viz.PostCostingandContinuousCosting.Postcostingmeans,analysisofactualinformationasrecordedin

financial books. It is accurate and is useful in the case of cost plus contract where price is to be

determinedfinallyonthebasisofactualcosts.Continuouscosting,aimsatcollectinginformationabout

costasandwhentheactivitytakesplacesothatassoonasajobiscompletedthecostofcompletion

wouldbeknown.Thisinvolvescarefulestimatesbeingpreparedofoverheads.Inordertobeofanyuse,

costingmustbeacontinuousprocess.


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Thoughthesellingpriceoftheproductisinfluencedbymarketconditions,whicharebeyondthe

controlofanybusiness, it isstillpossibletodeterminethesellingpricewithinthemarketconstraints.Forthispurpose,itisnecessarytorelyuponcostdatasuppliedbyCostingDepartment.

Direct Costs:Costswhicharedirectlyrelatedtoorattributabletoacostcentreorcostunit

areDirectCosts.Such,ascostofbasicrawmaterialusedinthefinishedproduct,wages

paid tooperatorsworking foractualproduction. It includes alldirectmaterial,direct

labourandotherdirectexpenses.

Indirect Costs:Costswhich are not directly identified with a cost centre or a cost unit are

IndirectCosts.Suchcostsareapportionedoverdifferentcostcentresusingappropriate

basis. Such as, Factory rent incurred over various departments; Salary of supervisor

engagedinoverseeingproductionactivity.

Fixed Costs:Therearethecostswhichareincurredforaperiod,andwhich,withinacertain

outputandturnoverlimits,tendtobeunaffectedbyfluctuationsinthelevelsoutputor

turnover. They do not tend to increase or decreasewith the changes in output. For

example,rent,insuranceoffactorybuildingetc.remainthesamefordifferentlevelsof

production.

Variable Costs:Thesecostswhich tendtovaryorchange inrelationtovolumeofproduction.

Theyincreaseintotalasproductionincreasesandviceversa.

Forexample, costof rawmaterials,directwagesetc.However,variable costs

perunitaregenerallyconstantforeveryunitofadditionaloutput.

Semi-variable Costs:Thesearethecostswhicharepartlyfixedandpartlyvariable.Thesearefixedup

toaparticularvolumeofproductionandbecomevariablethereafterforthenext level

ofproduction.Hence, theyarealsocalledStepCosts.Someexamplesarerepairsand

maintenance,electricity,telephoneetc.

Production Costs:The cost of the set of operations commences with the supply of materials,

labourandservicesandendswiththeprimarypackingoftheproduct.Thusitisequalto

thetotalofdirectmaterials,directlabour,directexpensesandproductionoverheads.

Administration Cost:Thecostofformulatingthepolicy,directingtheorganizationandcontrollingthe

operationsof theundertaking,which isnotdirectly related toproduction, sellingand

distribution, research or development activity or function. Some examples are office

rent,accountsdepartmentexpenses,auditandlegalexpenses,directremuneration.

Selling Cost:Thecostofseekingtocreateandstimulatedemandincludingsecuringordersisselling cost. These are sometimes called marketing costs. Some examples are

advertisement,costofdemonstration,samplesetc.


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Distribution Costs:Thecostof thesequenceofoperationswhichbeginswithmaking thepacked

productavailablefordispatchandendswithmakingthereconditionedreturnedempty

package,ifany,availableforreuse.

Research and Development Cost:The

cost

of

researching

for

new

or

improved

products,

new

applications

of

materialsor improvedmethods isResearchcost.Thecostoftheprocesswhichbegins

withthe implementationofthedecisiontoproduceanewor improvedproduct,orto

employaneworimprovedmethodandendswithcommencementofformalproduction

ofthatproductorbythatmethodisDevelopmentcost.

CASH FLOW STATEMENTCashflowstatementisastatementwhichindicatessourcesofcashinflowsandtransactionofcash

outflowsofafirmduringanaccountingperiod.Whencashflowsareadjustedfor presentvalueusing

presentvaluefactorwhichisderivedfromcostofcapitalitisknownasdiscountedcashflows.

Ananalysisofcashflowisusefulforshortrunplanning.Afirmneedssufficientcashtopaydebts

maturinginthenearfuture,topay interestandotherexpensesandtopaydividendstoshareholders.

The firm can make projection of cash inflows and outflows for the near future to determine the

availabilityofcash.Thiscashbalancecanbematchedwiththefirmsneedforcashduringtheperiod,

andaccordingly,arrangementcanbemadetomeetthedeficitorinvestthesurpluscashtemporarily.It

summarisescausesofchangesincashpositionbetweenthedatesoftwobalancesheets.

Cashflowsarisefrom3activities:

1) Cash flows from operating activities Operating activities are the principal revenue producingactivitiesoftheenterpriselikesaleofgoodsandrenderingservices.

2) Cash flows from investingactivities Investmentactivitiesare theacquisitionanddisposalof longtermassets.

3)

Cash flows from financingactivities Financingactivitiesare theactivities thatresult inchanges in

thesizeandcompositionofownerscapitalandborrowingofthecompany.

The statementhelps to analyse the companys liquidityposition, fixed asset acquiredby the

firm,whetherthefirmuseexternalresourcesoffinancetomeetitsneedsetc.

Cashoutflowsatoperational levelare in the formofcost.Costsaremainlyclassified into two

typesthepurposeofcapitalbudgetingi.e.fixedcostandvariablecost.

WORKING CAPITALAny industrial establishment requires broadly two kinds of funds. The first one is longterm

fundswhicharerequiredforthepurchaseoffixedassetssuchasland,building,machineries,electrical

installations, start up expenses, development expenses, purchase of goodwill, purchase of furniture,

purchase of vehicles and other items to bring the establishment into operation. The second kind is

short

term

funds.

These

are

required

to

meet

the

needs

of

day

to

day

expenses

such

as

raw

materials,

stores, power and fuel, salaries, wages, administrative expenses, interest, sales and distribution

expensesandotherexpensestoproducethesaleablegoods,uptotherealizationofthesaleproceeds.

Till the sale proceeds are realized, the inventory is built up to facilitate smooth production and

outstandingbillsi.e.debtorsarealsofinancedbytheshorttermfunds.Induecoursetheestablishment

alsogetssomecreditfromtheirsupplierwhichisindirectfinancingoftheshorttermfunds.

Funds employed in current assets constituteworking capital. It is in fact the lifeblood and

controllingnerveoftheunit.Theconceptusedforworkingcapitalmaybegrossworkingcapitalornet


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working capital.Grossworking capital constitutes currentassets,whereasnetworking capitalmeans

currentassetminuscurrentliabilities.Workingcapital,alsoknownasnetworkingcapital,isafinancial

metricwhichrepresentsoperatingliquidityavailabletoabusiness.Alongwithfixedassetssuchasplant

andequipment,workingcapitalisconsideredapartofoperatingcapital.Itiscalculatedascurrentassets

minuscurrentliabilities.Ifcurrentassetsarelessthancurrentliabilities,anentityhasaworkingcapital

deficiency,alsocalledaworkingcapitaldeficit.Acompanycanbeendowedwithassetsandprofitability

but short of liquidity if its assets cannot readily be converted into cash. Positiveworking capital is

requiredtoensurethatafirmisabletocontinueitsoperationsandthatithassufficientfundstosatisfy

bothmaturingshorttermdebtandupcomingoperationalexpenses.

Themanagement ofworking capital involvesmanaging inventories, accounts receivable and

payableandcash.Howmuchworkingcapitalwillberequiredbyaparticularindustrialundertakingwill

dependupontheproductioncycle i.e.fromthetimerawmaterial ispurchasedtothetimegoodsare

soldandcashisrealized(operatingcycle).Therefore,theworkingcapitalforaunitwouldmeanthetotal

currentassetsithastohold.

Operatingcycledependsuponthefollowingactions:

Seasonality Stockcut/safety Economyofpurchases Bunchedreceipts Productionprocess Disturbanceinproductionprocess Disturbanceinsalesduetotransportproblems Disturbanceinsalesduetodepressioninmarket Termsofsaleand Slowbilling(slowcollectionetc.)

Manynewlystartedunitsbecomesickorrunintofatalproblemsduetodefectivefinancialplan.The

planadoptedmayfailtoprovideadequatecapitaltomeettheneedsofbothfixedandworkingcapital,

particularlythelater.Thereareinstanceswhereunitshavebeenabletoobtainsufficientfundstobuya

plantbut failed toequip the sameand conductproductionoperations successfullybecauseof faulty

assessmentofworkingcapitalneeds.

Asfarastherequirementofpurchaseoffixedassets isconcerned, it isalmostcertainwhat items

are to be purchased and how much amount will be involved and usually the decision for this

expenditureistakenintheverybeginning.Ifaborrowerapproachesforfundsforthispurpose,bankers

examine the technical feasibility, economic validity and managerial competency before deciding to

sanctiontheloan.Thereisnotmuchproblemtosanctionit,providedthebankerissatisfiedaboutthe

earning capacityand the repayment schedule.Both thebankers aswell asborrowerhave todecide

aboutitonlyonce.

Ontheotherhand,amountofworkingcapitalrequiredbytheconcernedunitmayvaryfromtime

to time,dependingupon various factors suchas costof rawmaterial,utilization capacity,marketing

arrangementsetc. It isonaccountofthis fact thatentrepreneursusuallyspendmostof theirtimetomanageworkingcapitalrequirements.

Priortonationalization,bankslargelyfinancedmediumandlargescaleindustriesandtraders.There

was inequitable distribution of credit amongst different sector and geographical areas. The security

orientedapproach of banks resulted in credit being available only to thewelltodo, thus leading to

concentrationofeconomicpowerintheirhands.Evenupto1973,industriesdidnothavetoplantheir

creditssinceitwaseasilyavailableagainstcollaterals.Banksontheirpartdidnotthinkofcreditplanning

becausebankswereflushwithfunds.


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WORKING CAPITAL MANAGEMENTDecisionsrelatingtoworkingcapitalandshorttermfinancingarereferredtoasworkingcapital

management.Theseinvolvemanagingtherelationshipbetweenafirm'sshorttermassetsanditsshort

termliabilities.Thegoalofworkingcapitalmanagementistoensurethatthefirmisabletocontinueits

operationsandthat ithassufficientcashflowtosatisfybothmaturingshorttermdebtandupcoming

operational expenses. By definition, working capital management entails short term decisions

generally,relating to thenextoneyearperiods,whichare"reversible".Thesedecisionsare therefore

nottakenonthesamebasisasCapitalInvestmentDecisionsrathertheywillbebasedoncashflowsand

/orprofitability.Onemeasureofcashflowisprovidedbythecashconversioncycle thenetnumberof

days from the outlay of cash for raw material to receiving payment from the customer. As a

management tool, thismetricmakesexplicitthe interrelatednessofdecisionsrelatingto inventories,

accounts receivableandpayable,and cash.Because thisnumbereffectively corresponds to the time

thatthefirm'scashistiedupinoperationsandunavailableforotheractivities,managementgenerally

aimsatalownetcount.

Guidedbytheabovecriteria,managementwilluseacombinationofpoliciesandtechniquesforthe

managementofworkingcapital.Thesepoliciesaimatmanagingthecurrentassets(generallycashand

cash equivalents, inventories and debtors) and the short term financing, such that cash flows and

returnsareacceptable.

Cashmanagement:Identifythecashbalancewhichallowsforthebusinesstomeetdaytodayexpenses,butreducescashholdingcosts.

Inventory management. Identify the level of inventory which allows for uninterruptedproductionbutreducestheinvestmentinrawmaterials andminimizesreorderingcosts and

henceincreasescashflow.

Debtorsmanagement.Identifytheappropriatecreditpolicy,i.e.credittermswhichwillattractcustomers,suchthatany impactoncashflowsandthecashconversioncyclewillbeoffsetby

increasedrevenueandhenceReturnonCapital(orviceversa).


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FINDINGSANDRECOMMENDATIONFINANCIAL STATEMENTS

PARTICULAR AMOUNT

COSTOFFINANCE

LANDANDSITE 145

BUILDINGANDCIVILWORK 7,295

PLANTANDMACHINERY 11,233

UTILITIES 860

KNOWHOWANDENGINEERINGFEES 550

MISC.FIXEDASSETS 2,050

PRELIMINARY&PREOPERATIVEEXPENCES 539

WORKINGCAPITALREQUIREMENT 21,300

TOTAL 43,778

MEANSOFFINANCE (0)

PROMOTERS'CAPITAL 9,000

SECUREDTERMLOAN 19,800

WCFINANCE 14,978

TOTAL 43,778

DEBTEQUITYRATIO

COSTOFPROJECT


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SR.NO. PARTICULARS AMOUNT UNIT

1 ALLTHEAMOUNTISRs.in Thousand

2 PROMOTER'SCAPITAL 9000 Rs.

3 TERMLOAN 19800 %

4 INTERESTRATEON TERMLOAN 11.50% %

5 W.CLOANINTERSTRATE 12% KLPERYEAR

6 BIODIESEL 100%CAPACITY 3300 TONSPERYEAR

7 GLTCERINEPRODUCTIONCAPACITY 363 PERUNIT

8 POWERRATE 7 PERLTR

9 FUELOIL(LDO) RATE 33 PERCU.M

10 WATERRATE 12.5

11 PACKINGTOBEDONEIN DRUMSOF220LTR.

12 COSTOFTHEDRUM 600 Rs.

13 TAXRATE 30%

14 TOTALDAYSINTHEYEAR 330

ASSUMPTION


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PARTICULARS 1 2 3 4

PRODUCTIONINKL 2,310 2,640 2,970 3,300

SALES

BIODIESEL 106,260 121,440 136,620 151,800

GLYCERIN 4,066 4,646 5,227 5,808

NETSALES 110,326 126,086 141,847 157,608

RAWMATERIALCOST 85,811 98,069 110,328 122,587

PACKINGCOST 6,930 7,920 8,910 9,900

UTILITIESCOST 2,400 2,743 3,086 3,428

SALARIES&WAGES 1,033 1,033 1,033 1,033

REPAIRS&MAINTAINENCE 595 680 765 850

DEPRICIATION 2,788 2,788 2,788 2,788

TOTALCOSTOFPRODUCTION 99,556 113,233 126,909 140,586

ADD:OPENINGSTOCK 15,657 17,894 20,130

LESS:CLOSINGSTOCK 15,657 17,894 20,130 22,367

COSTOFSALES1%OFSALES 1,103 1,261 1,418 1,576

GROSSPROFIT 25,323 13,829 15,756 17,683

INTEREST

1.ONTERMLOAN 2,277 2,174 1,760 1,346

2.ONW.C.LOAN 1,797 2,054 2,311 2,568

ADMINISTRATIVEOVERHEADS 2,450 2,800 3,150 3,500

SELLINGOVERHEADS&EXPENSES 315 315 315 360

PRELIMINARY&PREOPERATIVEEXP.WRITEOFF 77 77 77 77

TOTALOVERHEADS(14+15+16+17) 6,916 7,420 7,612 7,850

PROFITBEFORETAX(13 18) 18,407 6,410 8,144 9,833

PROVISIONFORTAX 5,522 1,923 2,443 2,950

NETPROFITAFTERTAX 12,885 4,487 5,701 6,883

RETAINEDPROFITS 12,885 4,487 5,701 6,883

ADD:DEPRICIATION 2,788 2,788 2,788 2,788

ADD:PRELIMINARY&PREOPERATIVEEXP.WRITEOFF 77 77 77 77

NETCASHACCRUALS 15,750 7,352 8,566 9,748

PROJECTEDINCOMESTATEMENT


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PARTICULARS 5 6 7

PRODUCTION IN KL 3,300 3,300 3,300

SALES

BIODIESEL 151,800 151,800 151,800

GLYCERIN 5,808 5,808 5,808

NETSALES 157,608 157,608 157,608

RAW MATERIALCOST 122,587 122,587 122,587

PACKINGCOST 9,900 9,900 9,900

UTILITIESCOST 3,428 3,428 3,428

SALARIES&WAGES 1,033 1,033 1,033

REPAIRS&MAINTAINENCE 850 850 850

DEPRICIATION 2,788 2,788 2,788

TOTALCOSTOFPRODUCTION 140,586 140,586 140,586

ADD:OPENINGSTOCK 22,367 22,367 22,367

LESS:CLOSINGSTOCK 22,367 22,367 22,367COSTOFSALES1%OFSALES 1,576 1,576 1,576

GROSSPROFIT 15,446 15,446 15,446

INTEREST

1.ON TERMLOAN 932 518 104

2.ON W.C.LOAN 2,568 2,568 2,568

ADMINISTRATIVEOVERHEADS 3,500 3,500 3,500

SELLINGOVERHEADS&EXPENSES 360 360 360

PRELIMINARY&PREOPERATIVEEXP.WRITEOFF 77 77 77

TOTALOVERHEADS(14+15+16+17) 7,436 7,022 6,608

PROFITBEFORETAX (13 18) 8,010 8,424 8,838

PROVISION FORTAX 2,403 2,527 2,651

NETPROFITAFTERTAX 5,607 5,897 6,187

RETAINEDPROFITS 5,607 5,897 6,187

ADD:DEPRICIATION 2,788 2,788 2,788

ADD:PRELIMINARY&PREOPERATIVEEXP.WRITEOFF 77 77 77

NETCASHACCRUALS 8,472 8,762 9,052

PROJECTEDINCOMESTATEMENT


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YEAR 1 2 3 4 5 6 7

PARTICULARS

SOURCESOFFUNDS

1 EQUITYSHARECAPITAL 19,800

2 NETCASHACCRUALS

3 TERMLOAN 14,978

4 BANKBORROWING 43,778

TOTAL 78,556

APPLICATIONOFFUNDS

1 CAPITALEXPENDITURE 7,295

2 CURRENTASSETS

(INCREASE/DECREEASEINWC)

3 PRELIMINARYEXP. 21,300

5 DECREASEINTERMLOAN 3,600 3,600 3,600 3,600 3,600

6 TAX

TOTAL 28,595 3,600 3,600 3,600 3,600 3,600

NETCASHFLOW 49,960 (3,600) (3,600) (3,600) (3,600) (3,600)

OPENINGCASH 49,960 46,360 42,760 39,160 35,560 31,960

CLOSINGCASHFLOW 49,960 46,360 42,760 39,160 35,560 31,960 31,960

CASH FLOW STATEMENT


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1 2 3 4 5 6 7

SOURCESOFFUND

EQUITY 9,000 9,000 9,000 9,000 9,000 9,000 9,000

RETAINEDEARNING 12,885 17,371 23,072 29,955 35,562 41,459 47,645

TERMLOAN 19,800 16,200 12,600 9,000 5,400 1,800

W.CLOAN 14,978 17,118 19,257 21,397 21,397 21,397 21,397

TOTAL 56,662 59,689 63,929 69,352 71,359 73,655 78,042

APPLICATIONOFFUNDS

FIXEDASSETS

LAND 145 145 145 145 145 145 145

BUILDING 7,295 7,295 7,295 7,295 7,295 7,295 7,295

PLANT&MACHINERY 11,783 11,783 11,783 11,783 11,783 11,783 11,783

MISC.FIXEDASSETS 2,050 2,050 2,050 2,050 2,050 2,050 2,050

UTILITIES 860 860 860 860 860 860 860

DEPRECIATION (2,788) (5,576) (8,364) (11,152) (13,940) (16,728) (19,516)

NETFIXEDASSET 19,345 16,557 13,769 10,981 8,193 5,405 2,617

CURRENTASSETS

CASH 15,555 18,386 22,367 27,662 32,534 37,696 44,948

PRELIMINARYEXPENSES 462 385 308 231 154 77

NETWORKINGCAPITAL 21,300 24,361 27,485 30,477 30,477 30,477 30,477

TOTAL 56,662 59,689 63,929 69,352 71,359 73,655 78,042

BALANCESHEET


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SR. PARTICULARS PERIO BASIS MARGIN

NO. (DAYS) (%) Amount Margin Amount Margin

CURRENTASSETS1 RAWMATERIALS 45 RMCOST 30 11,701 3,510 13,373 4,012

2 PACKINGMATERIAL 15 MATERIALCOST 25 315 79 360 90

3 GOODSINPROCESS 5 RMCOST 50 1,300 650 1,486 743

4 FINISHEDGOODS 7 SALESVALUE 30 2,340 702 2,675 802

5 DEBITORS 30 SALESVALUE 30 10,030 3,009 11,462 3,439

TOTAL 25,686 7,950 29,356 9,086

CURRENTLIABILITIES

1 CREDITORS 15 RMCOST 30 3,900 1,170 4,458 1,337

2 SALARY&WAGES 30 EXPENSES 100 94 94 94 94

3 FUEL

OIL 7 FUEL

OIL

COST 30 40

12

46

14

4 OTHERUTILITIES 30 MONTHLYEXP. 100 100 100 115 115

5

ADMINISTRATIVE

OVERHEADS 30 MONTHLYEXP. 100 223 223 255 255

6 SELLINGOVERHEADS 30 MONTHLYEXP. 100 29 29 29 29

TOTAL 4,386 1,628 4,995 1,843

NE TWORKINGCAPITAL 21,300 6,322 24,361 7,243

YEAR1 YEAR2

WORKINGCAPITALREQUIREMENT


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SR. PARTICULARS

NO. Amount Margin Amount Margin Amount Margin Amount Margin Amount Margin

CURRENTASSETS

1 RAWMATERIALS 15,045 4,513 16,716 5,015 16,716 5,015 16,716 5,015 16,716 5,015

2 PACKINGMATERIAL 405 101 450 113 450 113 450 113 450 113

3 GOODSINPROCESS 1,672 836 1,857 929 1,857 929 1,857 929 1,857 929

4 FINISHEDGOODS 3,009 903 3,343 1,003 3,343 1,003 3,343 1,003 3,343 1,003

5 DEBITORS 12,895 3,869 14,328 4,298 14,328 4,298 14,328 4,298 14,328 4,298

TOTAL 33,025 10,222 36,695 11,357 36,695 11,357 36,695 11,357 36,695 11,357

CURRENTLIABILITIES

1 CREDITORS 5,015 1,504 5,572 1,672 5,572 1,672 5,572 1,672 5,572 1,672

2 SALARY&WAGES 94 94 94 94 94 94 94 94 94 94

3 FUELOIL 52 15 57 17 57 17 57 17 57 17

4 OTHERUTILITIES 129 129 143 143 143 143 143 143 143 143

5

ADMINISTRATIVE

OVERHEADS 223 223 318 318 318 318 318 318 318 318

6 SELLINGOVERHEADS 29 29 33 33 33 33 33 33 33 33

TOTAL 5,541 1,994 6,218 2,277 6,218 2,277 6,218 2,277 6,218 2,277

NETWORKINGCAPI 27,485 8,227 30,477 9,080 30,477 9,080 30,477 9,080 30,477 9,080

WORKINGCAPITALREQUIREMENT

YEAR7YEAR3 YEAR4 YEAR5 YEAR6

SR.NOPARTICULARS 1 2 3 4 5 6 7

1

TOTALWORKINGCAPITAL

REQUIREMENT 21,300 24,361 27,485 30,477 30,477 30,477 30,477

2 PROMOTER'SMARGIN 6,322 7,243 8,227 9,080 9,080 9,080 9,080

3 PERMISSIBLEBANKLIMITS 14,978 17,118 19,257 21,397 21,397 21,397 21,397

FINANCINGOFWORKINGCAPITAL


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CONCLUSION0 1 2 3 4 5 6 7

DISCOUNTINGFACTOR 13.00%

CASHFLOWS 15,750 7,352 8,566 9,748 8,472 8,762 9,052

CUMULATIVECASHINFLOW 15,750 23,101 31,667 41,415 49,887 58,648 67,700

CASHOUTFLOW (43,972)

DISCOUNTINGFACTOR 13% 13% 13% 13% 13% 13% 13%

DCIF 13,938 5,758 5,936 5,978 4,598 4,208 3,848

DCF (43,972) 13,938 5,758 5,936 5,978 4,598 4,208 3,848

TOTALDCIF 44,264

NPV 292

IRR 0.21%PAYBACKPERIOD 4 YEARS

4 MONTHS

ROI 29.30% 10.20% 12.96% 15.65% 12.75% 13.41% 14.07%

DSCR 7.92 1.65 1.93 2.24 2.08 2.25 2.47

DEBTTOEQUITYRATIO 3.86 1.59 1.26 0.99 0.78 0.60 0.46 0.38

CONCLUSIONSHEET

Fromtheabovetablewecandrawfollowingconclusion:

The NPV of the project considering only the revenue of first seven year and adiscountingfactorof13%is292,whichispositive.Asinthiscasewehavenotconsider

theterminalvaluefortheprojectsothevalueofNPVwhich ispositive isgoodforthe

projectandweshouldgofortheproject.

TheIRRfortheprojectat13%discountingfactoris.21%. Thepaybackperiodfortheprojectis4yearsand4months ROIandDSCRarehighforthefirstyearascomparedwiththeremaining;thisisduethe

reasonthatwearedoingtherepaymentofthetermloanform2nd

yearonward.

Atthebeginningoftheprojectthedebttoequityratiois3.86whichisreducingastheretainedearningsfortheproject is increasingastheplantstartoperating.Wearenot

doing any extra capital expenditure in the seven year that is the reasoningwhy the

retainedearningsareincreasing.


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BIBLIOGRAPHYThestudyisbasedonsecondarydatacollectedfromRBIwebsite,variousscholarlyarticlesand

researchpapers.ItalsoinvolvesdiscussionwithDr.SanjayBhoyar,BiodieseldepartmentPDKV,Akola

andDr.SuhasZambhereaconsultantforBiodieselplant,Mumbai.

ARTICLES&RESEARCHPAPER:

http://www.iwmi.cgiar.org/EWMA/files/papers/rajagopal_biofuels_final_Mar02.pdfThisdocumentbriefsyouabouttheproductionstrategiesandchallengesinvolvedinthe

sameinIndia.

http://www.crowniron.com/userImages/Biodiesel.pdfThisdocumentgivestheinformationabouttheplantlayoutandengineeringaspectsof

thebiodieselplant.

http://www.istc.illinois.edu/tech/smallscalebiodiesel.pdfThisreportbriefsaboutthebiodieselplantandmaterialrequirementforthesame.

http://www.unapcaem.org/Activities%20Files/A0801/0307.pdfThisdocumentgivesthe informationaboutesterificationplant in Indiaandalsoabout

theproductionfacilitiesinIndia.

http://www.canolacouncil.org/uploads/convention_2008/Global%20Biodiesel%20Market%20Trends%20%20Outlook%20and%20Opportunities%20%20THURMOND.pdf

This document gives the information about the global market survey, raw material

trendsandmarketforecastofthebiodieselinthefuture.

BOOKS:

FinancialManagement:SeventhEditionbyPrasannaChandra PrinciplesofCorporateFinance:EightEditionbyRichardBrealey&StewartMyers

final project sarwesh_kasat roll no_18 2003

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