Model Sheep Farm

Jammu and Kashmir Entrepreneurship Development Institute (JKEDI)
DETAILED PROJECT REPORT
On
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October December
2015 2016 2017
TECHNo-ECONOMIC FEASIBILITY
OF
M/S.Model Sheep Farm

S/O: D/O: W/O: Parentage:
Name
Prop
of Entrepreneur:
Proprietor
UNDER
SEED CAPITAL FUND SCHEME

(scfs)
Prop. Mr./Ms.
address 0
District 0
Qualification
Cell No. 0
Jan,2017
Jammu Campus: 0191-2474512/Kashmir Campus: 01933-224362/Ladhak Campus: 01982-252239

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Jammu and Kashmir Entreprenuership Development Institute
Seed Capital Fund Scheme (SCFS)
PROJECT PROFILE
1 Name Of Unit: M/S. Model Sheep Farm
2 Name of the Entreprenuer: Mr./Ms.
3 Name of Father /Spouse Mr./Ms.
4 Residential Addresss:
5 Unit Address :
District :
Tehsil:
Constituency:
Cell:
6 Legal Status: Sole Propreitorship
7 Activity: Sheep Farming
8 Sector: Agri-Allied
9 Total Cost of Project :

S.No. Particulars Percentage Amount
A. Fixed Capital Investment 92% 783,800
B. Initial Recurring Expenses 8% 67,200
Total 100% 851,000
10 Means of Financing:
Particulars Percentage Amount
Bank Finance 65% 553,150
Seed Capital 297,850
35%
Promoters Contribution 0
Total 851,000.00
11 Unit Size (No.Of Ewes) 56
12 Moratorium Period: 1 Year
13 Break Even Point: 49.36%
14 Projected Sales : 360,987
15 Debt Service Coverage Ratio: 2

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Financial Structure
The Total Project Cost for the proposed venture is estimated at 851,000
Investment Plan
S.No. Particulars %age Amounts
A Fixed Investments 92% 783,800
i Primeses Leased
ii Civil Works 168000
iii Livestock 470400
iv Plant & Machinery 16800.00
v Preliminary Expenses 128600.00
B Initial Recurring Expenses 8% 67,200.0
Total Project Cost (A+B) 851,000
The amount if needed to make 35% Margin money, for availing Bank Finance of 65% of Total Project Cost
may be contributed by Entreprenuer himself,the said venture has funding pattern as:
S.No Particulars Percentage Amount (Rs.)

1 Seed Capital 297,850
35%
2 Promoters Contributers 0
3 Bank Finance 65% 553,150
Total 100% 851,000
Likewise,the project will be financed under Term Loan A/c viz.
Term Loan A/c For Fixed Capital Investment & Initial Recurring Expenses
S.No Financing Pattern
A Long Term Investment Amount (Lkhs)
i. Margin 297,850.00
ii. Term Loan 553,150.00
Total 851,000

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I. Introductions
Sheep is a dual purpose animal reared for wool and meat. Sheep farming plays a significant role in the in Agri-
economy and is a large and important segment of livestock farming in J&K, owing to the religious festivals and
other events they offer good returns. The various advantages that sheep farming offer are as:
The initial investment needed for sheep farming is low
Due to small body size and docile nature housing requirements and manage mental problems with sheeps are
less.
Sheep are friendly animals and enjoy being with the people.
Sheep can thrive well on wide variety of weeds, crop residues, agricultural by-products
No religious taboo against sheep slaughter and meat consumption prevalent in the any society
II. Setting up Sheep Farm

Before starting consider your resources, the land available, and your level of interest and capabilities before
deciding to engage in the Sheep farming business. Identify why you want to raise cattle and set goals to achieve
the most constant economic return. Sheep farming provides a dependable source of income to the farmers
through sale of wool, animals and manure. The following points should be taken into consideration:
Locate the area where you want to raise Sheep, this is important because you need to find a location that you
are used to or really like and are confident you can run your farm.
Facilities should be preferably located on elevated, well-drained sites. The site should be equipped with water
and electricity connection.
Housing requirements of Sheep folk vary by climate, season(s) of lambing, and management preferences of
the farmer.
When designing a shelter, the open side should face wind ward side and should be easily accessible for
deliveries and manure handling.
Traditionally sheep flock are housed in concrete shed or Green house-type structure can also be used which is
a lower-cost alternative of housing for the period of 5 months from November to April.
Afterwards the flock is migrated to Alpine pastures Like Sonmarg, Gulmarg and Pahalgam from May to
October
For lambing during winter season more elaborate housing is usually required and for lambing occurring during
grazing season in Alpine pasture simple shelters may be all that is needed in order to ward off predators.
In addition, facilities for the storage of feed, bedding, and equipment are also required.
Space requirements: A flock of 50 ewes can be easily kept in 550 sq.ft to 750 sq. To manage space vertical
expansion can be under-taken where instead of concrete slab metal or mesh flooring is used which saves cost.
Ventilation needs: Good ventilation is an absolute must. Respiratory problems (e.g. pneumonia and
bronchitis) often result from poor ventilation. If ammonia can be smelled in the barn, ventilation is likely
inadequate. Usually naturally-ventilated cold housing is preferable for sheep. It is better to ventilate shed
optimally as over-ventilation and under-ventilation are not desirable.
Bedding needs: Bedding provides warmth, insulation, and comfort to housed sheep flock. Various materials
for bedding can be used, depending upon their cost and availability few mostly used are: straw, sawdust, wood
shavings, peat and leaves can be used. Bedding should be used as per their moisture or liquid absorption
capacity. The use of rubber mats can also be used to improve comfort and insulation but needs constant house-
keeping for better hygiene.
III. Selecting Proper Breed

Ewes in good health and having good physical features must be purchased in consultation with Veterinarian.The
important breeds of sheep are Ramur, Bushair,Gaddi,Gurez,karnah,Bhakarwal,Poonchi,Kashmir
Merino,Rambouillet,Corriedale and Paul dorset which are of dual purpose most of these have been involved
over the last few years in cross-breeding in order to improve the genetic makeup.

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of native sheeps in terms of yield and adaptability to valley climate. Deciding which breed to raise is an
important decision that each farmer must make, so the first step in sheep farming is selecting efficient breed
which can be confirmed form experienced farmers. A Cross breed is an animal whose sire (father) and dam
(mother) are of different breeds, while a Pure breed animal's parents are of the same breed or type. Price and
availability will also have a bearing on which breeds or crosses are chosen. Sheep breeds are often categorized
as to whether they are more suitable as a Ram or Ewe in the breeding program. Ram or "sire" breeds excel in
growth and carcass (meat) characteristics whereas ewe or "dam" breeds excel in fitness (e.g. longevity, parasite
resistance) and reproductive traits.
IV. Finding Age of Sheep flock

Age of sheep can be determined by examining their teeth. Young lambs have eight milk teeth or temporary
incisors arranged in four pairs on their lower jaw. There are no teeth on the upper jaw, only a dental pad. At
approximately one year of age, the middle pair of incisors is shed and replaced by permanent teeth (incisors).
Some breeds mature at a faster rate and their teeth will erupt at an earlier age. At approximately two years of
age, the second pair of milk teeth is replaced by permanent incisor teeth. At three and four years of age, the
third and fourth pair of permanent teeth appear. At four years of age, the sheep has a "full" or "solid" mouth. As
the sheep ages, the teeth will start to wear, spread, and eventually break off.
Age of sheep Sheep Number of teeth

Birth to 12 months Lamb 8 Milk teeth all temporary teeth
~ 12 to 24 months Yearling two tooth Hogget 2 C.I 6 Milk teeth
~ 24 to 36 months Four tooth 2 C.I,2 M.I,4 Milk teeth
~ 36 to 48 months Six tooth 2 C.I,M.I,2 L.I
Over 48 months 8 tooth,Full mouth,Solid mouth 2 C.I,2 M.I,2 L.I,2 C.I
(C.I =Central Insisors,M.I=Middle Insisors)
V. Migration
Farmers take their sheep flock to Alpine green pastures during summers from May to October or till the
vegetations is available and keep their sheep outside for these months without shed feeding for 6 months of
year or can even be migrated to Rajouri and Poonch during winter season as is practiced by Gujjars and
Bakarwals which is a more natural practice. Sheep grazing in alpine pastures result in considerable cost cutting
as Dry feed and Concentrate is not consumed for that period. Besides, housekeeping cost for shed maintenance.
Sheep can also adapt to a complete confinement system of production. Confinement enables a producer to
raise sheep or increase flock size in situations where land is a limiting factor due to its un-availability.
Confinement requires intensive, year-round management. Because it tends to have a higher cost of production,
higher levels of performance are usually required. There are numerous advantages to raising sheep and/or
lambs in total confinement. Internal parasite problems can be practically eliminated, as infective larva is
consumed primarily by grazing animals.
VI. Feeding and Watering management
Feeding during winter season in shed usually results in considerable feed wastage and contributes to the
spread of disease, especially internal parasites. If sheep are able to stand in their feed or feeders, they may
defecate and/or urinate in the feed. Feeders need to be raised off the ground and constructed in such a way to
keep sheep and lambs out (as much as possible).Feeders with square bottoms can be used to feed all at once
depending upon the required length. Rubber or metal pans are also useful for hand feeding small numbers of
animals.
Clean, fresh water is a daily necessity for sheep and lambs. Sheep will consume anywhere from to 4 gallons
of water per day, depending upon their physiological state, the content of water in their feed, and
environmental conditions. Requirements increase greatly during late gestation and lactation. Water can be
provided in buckets, tubs, or channels made of tin.

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VII. Lambing (Parturition) management

With the gestation period of 5 months Ewes usually lamb in spring and Winter season, lambing may occur both
in shed and in Alpine pasture. Still the following precautions may be taken during and after parturition:
For ewes that are to lamb for the first time keep a vigilant eye for difficult birth and seek prompt veterinary
aid.
Immediately after parturition ewes lick lambs and recognize them properly.
Do not handle lambs too frequently till they stand on their legs and start seeking for teats and suckle milk. If
they are not able to do so after sufficient time, provide help to them in suckling foremilk (the first milk) which is
very essential for health and survivability of lambs.
At Alpine pastures new born lambs should be protected from cold, rain and winds. In case of orphan lambs
arrange foster mothers, if ewe is not available Goats can also serve.
Dress antiseptically the naval cord of the lamb. Give a teaspoonful of castor-oil or liquid paraffin to the lamb to
facilitate defecation and passing out of Meconium (green faeces) easily.
Feed sufficient quantity of good-quality hay and concentrates to the lactating ewes for meeting nutritional
requirements for early lactation. Provide plenty of clean fresh drinking water as the lactating ewes drink
surprisingly higher amount of water during lactation the lamb should be taken care of the maximum extent
during early period of life to ensure better survival.
Provide plenty of clean fresh drinking water as the lactating ewes drink surprisingly higher amount of water
during lactation the lamb should be taken care of the maximum extent during early period of life to ensure
better survival.
Provide good quality hay with or without concentrate mixture to suckling lambs in addition to suckling of milk
from tenth day to weaning age i.e act of substituting Milk/Stopping Suckling in Lambs) which should preferably
be done at 90 days, although in breeds with low milk production or where re-breeding is desired it can be done
around 60 days.
Provide green leguminous fodder or fresh tree leaves to lambs to nibble during suckling period.
Lambs may be ear-tagged or tattooed on the ear for identification, tattooing forceps and ear-tagging forceps
should also be cleaned and sterilized at the time of use.
during lactation the lamb should be taken care of the maximum extent during early period of life. This will also
ensure better survival.
during lactation the lamb should be taken care of the maximum extent during early period of life. This will also
ensure better survival.
Provide good quality hay with or without concentrate mixture to suckling lambs in addition to suckling of milk
from tenth day to weaning age i.e act of substituting Milk/Stopping Suckling in Lambs) which should preferably
be done at 90 days, although in breeds with low milk production or where re-breeding is desired it can be done
around 60 days.
Provide green leguminous fodder or fresh tree leaves to lambs to nibble during suckling period.
Lambs may be ear-tagged or tattooed on the ear for identification, tattooing forceps and ear-tagging forceps
should also be cleaned and sterilized at the time of use.
Lambs born in spring are usually grown by the time summer comes, if you rear native breeds then they may
attain weight of 25-30 Kg within 6 months and can be sold by autumn thereby fetching nice margin as it
coincides with the marriage and festivals season in J&K, besides producers carry larger flock to alpine pastures,
reducing cost on feed significantly and, if you are rearing cross breed like Kashmir Merino they may attain
weight of 80-85 Kg within 9 months.
Lambs born in winter season need adequate facilities with respect to housing, cost of feed & concentrate,
besides infections like Mastitis, scours and pneumonia tend to be bigger issues because sheep are confined into
smaller areas. The only advantage in winter lambing is that, since lambs are usually fed on feed and concentrate
problems like internal parasites and predators are controlled to a large extent.

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VIII. Breeding Management

Preparing flock for breeding starts well in advance of the breeding season. Ram and Ewes should be purchased
at least several months before the start of the breeding season. Selection of Ram and Eves is usually done on
the basis of visual appraisal of flock in order to exercise efficient breeding management, a first generation
farmer should seek help form veterinarian or an experienced farmer. The below mentioned parameters are
carefully analyzed viz:
Health
Healthy sheep will survive and be productive for a longer time than an animal which has physical problems. The
conditions to gauge health status of sheep are that it stays bright and alert; it does not separate itself from the
rest of the flock. It is in good body condition, relative to its stage of production and plane of nutrition. Sheep
that limp, have abscesses, pink eye, or sore mouth lesions, or is showing respiratory symptoms, or are in
extremely poor body condition should not be purchased for breeding.
Mouth
In a correct mouth, both the top and bottom jaws are aligned so the incisor teeth are flush with the pad on the
upper jaw. Sheep with severe "undershot" or "overshot" jaws should be avoided, as this is an inherited defect.
An undershot jaw, also called a "parrot mouth," is when the lower jaw is too short. Sheep with severe
undershot parrot mouths may have difficulty grazing short pastures. An overshot jaw, also called a "monkey
mouth" is when the lower jaw is too long. Slight variations in jaw alignment are not a problem or inherited
defect. The best way to observe jaw structure is to look at the sheep from the side.
Teeth
Condition of a sheep's teeth depend upon its diet and the place where it lives. Animals on a rough, coarse diet
will grind their teeth away faster than animals on an easily eaten diet. The molar teeth are far more important
than the incisor teeth. They do the grinding of feed. To evaluate the molar teeth, you have to feel on the
outside of the cheek and jaw. Never put your fingers inside the animal's jaw. You are likely to get badly bitten.
Bad breath can be a sign that there is something wrong with the molar teeth. Animals with teeth problems
should be not selected for breeding.
Feet and legs

Normal sheep has straight legs that are set squarely under the corners of the body. They are not too close at
the hocks or knees. The pasterns (portion limb above hoofs) are neither too straight nor too angled. Sheep with
severe feet and leg problems may break down in difficult mating situations. Sheep with slight structural defects
usually do not have any problems.
Body Volume
Sheeps should have a Deep side, Wide top, and Round body, indicative of good spring of rib. Narrow, flat-
sided, shallow-bodied animals are less likely to be productive.
Sex character
Rams should appear rugged, stout and masculine. If they have horns, the horns should be growing away from
the head. Ewes should be feminine and more refined in their features. Femininity is usually associated with a
longer head and neck and a more angular body type.
Udder
Ewes without a sound udder has no value in a breeding program. The size of the ewe's udder will depend upon
its age and stage of lactation. Ewes udders should be palpated to determine that they are healthy and
functional. Ewes with hard, lumpy, pendulous udders and bulbous or oversized teats should be avoided. The
udder should have two functional teats that are free from defects.

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Testicles
Ram's testicles should be palpated to determine that they are well-developed and normal. They should be
firm, evenly sized, and move freely within the scrotum. Both the testicles and Epididymus should be free from
lumps. Rams of below average scrotal circumference should be avoided for breeding purpose. Though scrotal
size varies by breed, body condition, and season, ram lambs to be used for breeding should have a scrotal size
of at least 30 centimeters; mature rams, 32 centimeters. Scrotal size affects a ram's semen output.
Scrotal circumference (cm)

Questionable Satisfactory Exceptional
Ram lambs, 8-14 months < 30 30-36 >36
Mature rams, > 14 months < 32 32-40 >40
Ram to Ewe Ratio

In general, the recommended ratio for mature rams is 1:25 to 1:50. In large flocks, the percentage of rams to
ewes is often higher. If estrus cycle has been synchronized in flock, more ram power is needed, approximately
1 ram for every 5 to 10 ewes.
IX. Bio-security:
Bio-security refers to the management practices that are undertaken to prevent the infection and spread of
diseases. Healthy Ewes are the cornerstone of a successful sheep enterprise. The necessary steps that should
be undertaken in order to maintain bio-security of your farm at various stages are as:
Acquisition of new animals
Introduction of new animals poses the single greatest risk to bio-security. While livestock may appear
outwardly healthy, they could be carrying a wide variety of diseases. Anytime a new animal is introduced to
the flock, there is a potential risk of that animal introducing a new disease.
Limit access to your farm and flock
Diseases are spread by contaminated footwear and vehicles. By limiting access to your farm and sheep, you
can limit the risk of introducing and spreading diseases. When people are given access to your sheep flock,
they should not have been on another sheep operation for several days. They should be required to wear
plastic boots or clean their shoes before entering your sheep-raising areas.
Vaccination
A vaccination program provides inexpensive insurance against common sheep diseases. It is generally
recommended that all sheep and lambs be vaccinated for clostridium perfringins type C & D (overeating
disease) and tetanus. The use of other vaccines will depend upon the perceived disease risk and diagnosis of
particular diseases in the flock by consulting vetenarian.
X. Manure management
All sheep farmers producers are responsible for properly and safely disposing of manure. Because many
sheep spend most of their life on pasture, sheep act as natural manure spreaders, meaning build-up of
manure is minimal. However, there are certain situations in which sheep are confined and manure may build
up, such as when sheep are penned for handling, lambing, or winter feeding. avoid spreading near known sink
holes, during rain, near permanent and intermittent bodies of water, and on steep land grades.
XI. Culling
Culling of sheep is very important for the development of a good flock. It helps to remove undesirable animals
and breeding from those which are most approximating the ideal sheep. About 10-20 per cent culling should
be practiced annually from third year onwards to develop a good flock and to avoid inbreeding depression.
The flock size should be maintained by replacing culled ewes by ewe lambs born in the flock.

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XII. Shearing
Most flocks are usually shorn twice a year, i.e. March-April after the winter and September-October after the
rains. The wool sector in the country is small and widely scattered. This is the sector, where organized sector
and decentralized sector run complimentary to each other towards meeting the requirements of all sections of
the domestic market as well as export .Taking the due cognizance of these complexities in the wool sector the
Government of India has constituted the Central Wool Development Board in the Ministry of Textiles for the
overall growth and development of this sector. The State Governments have also set up wool. Which purchase
wool and animals on Weight basis and shepherds/sheep farmers are paid better prices.
XIII. MARKET AND DEMAND

The State of Jammu & Kashmir has been a state of rich heritage and cultural values where the taste of the
people is positive about the consumption of Sheep Meat. The State has a population of Approximately 1.20
Crore Population which makes a great scope for sheep meat. 90% of the Requirement of the Meat is met by
imports from the Neighbouring States of J & K.
XIV. Feeding Schedule

From spring to late autumn sheep are reared exclusively on natural grazing be it at village pastures or alpine
pastures. Grazing is the natural habitat of sheep flock and is most economical.
But during winter months 15th November to early March sheep are stall fed with dry fodde3r and concentrate
mixture, Dry fodder is offered at the rate of 1 to 1.5 Kg per sheep and concentrate (feed) of 250gms to 400 gms
per day. The concentrate mixture is usually prepared in the following ratio:
S.No Material Quantity
1 Wheat/Rice bran 40-45 %
2 Maize grains 25%
3 Corn 20%
4 Salt 1%
5 Mineral mix 2%
6 Molasses 7%
XVI. Environmental Concerns

As per the following laws:
Air ( Prevention and Control of Pollution) Act,1981
Water (Prevention and Control of Pollution) Act.1974
Environment (Protection) Act, 1986
The project will have adequate arrangements for the disposal of solid and liquid waste from the farm, besides
will follow guidelines issued by local bodies like Muncipality/Town area Committee/PCB from time
to time in order to prevent any discomfort to neighbours by; Cleaning shed from time to time and making
provision for adequate sanitation.
XVII.Apprisal & Disbursement of Funds
The Detailed Projected Report after getting approval from steering committee is apprised by J&K Bank for
examining its Techno-Economic feasibility and Bankability, consequent upon which funds are disbursed in
stages against creation of specific assets such as establishment of Workshop/Shed/factory,procurement of plant
& machinery/Livestock,after every verification by JKEDI.

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Techno-Economic Parameters
S.No Discription Remarks
1 Economic Life of Ewe 6-7 Lambings
2 Rearing System Shed Rearing and Pasture Rearing
3 Breeds Type Cross Breeds
4 Shed Area ( Incl.Storage,Soakage Pit) 10 Sq.ft per Ewe
5 Cost of Construction of Livestock shed Rs.300/Sft
6 Cost of Equipment 10% of Civil Works
7 Breeding Cycle Three Lambs Every 2 Two Years (Spring & Autumn)
8 Gestation Period 150 Days
9 Adult Mortality 5%
10 Lamb Mortality 10%
11 Culling Percentage Every year at the rate of 20 Percent
12 Inter-lambing period 8 Months
13 Insurance Cost on Value of Ewe 5%
14 Cost of Adult Ewe 8400.00
15 Cost of Adult Ram 10880,Given free of Cost by Sheep Husbandry
16 Lambing rate 80%
17 Shearing Twice a Year
18 Sex ratio 1:01
19 Female Progeny Retained in Flock as per the Culling Percentage
20 Flooring Slatted
21 Revenue From Manure/Annum Adult (cft) Hogget (cft) Rs./Cft
10 5 50
22 Wool Production Per Annum (Kg) Ewe Lamb Rate/Kg

2 0.8 75
23 Rate of Culled Stock/Ewe 7000
24 Salvage value of Dead Sheep 100
25 Feed Requirement during winter per Animal Per Day Adult Weaner Rate/Ewe/1.5 Year
Dry Fodder in Kgs 1 0.5
900
Concentrate in Kgs 0.4 0.1
26 Feed Requirement during summers (Free foraging)
27 Shift Round the Clock
28 Fodder & Concentrate (Days) 120
29 Grazing period for the number of days are 245 Grazing Expenses/Animal 200
30 Medicine & Vaccines per Ewe/Annum(Rs) 100
31 Shearing Charges Per Animal (Rs.) 50
32 Selling Price of Progeny (Rs) 8000

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Background of Entreprenuer & Project

M/S.Model Sheep Farm Is a sole propreitorship concern of Mr./Ms.
S,D/o Mr./Ms. R/o 0
The promoter is a young person with all necessary qualifications, enthusiasm and energy to excel. The
opportunity for this venture exists for two reasons:
1. Growing Demand.
2. There are few providers of such Product/Service.
There is rapid growth in the market and increasing demand. In addition, more niche markets are evolving.
Initially, it will be difficult to compete with experienced providers, especially the market leaders. However,
the units target market is an exploitable niche and its service is differentiated. The ventures target market
members will have similar activity interests, more disposable income and less sensitivity to price. The
package prices will be out of reach for the majority of travellers. Product/Service will be priced based upon
competitor prices and the value added of offering.
The unit is proposed to be located at on Owned/Rented land. Where all the basic infrastructural facilities viz:
Water connection, Power connection road connectivity is available as per the requirement. The proposed
project as such would not fact any difficulty for its smooth operation. The requirement of land for the project
has been worked out on the basis of covered area for civil works, marginal area for future expansion.
The Subsidy amount under Seed Capital Fund Scheme depends upon the educational
qualification of the borrower and is as:
S.No Qualification Amount (Lkhs) Loan Repayment Period
1 10+2 & Graduate 300,000.00 5.5 Years
2 Post Graduate 500,000.00 6.5 Years
3 Technical Graduate 750,000.00 6.5 Years
The Contents of DPR are given under following heading:
i Introduction about Various Aspects of Project
ii Assumptions of Project
iii Fixed Capital Estimate
iv Working Capital Estimate
v Recurring Expenses
vi Depreciation Schedule
vii Projected Sales
viii Projected Profit & Loss Account for Seven Years

ix Projected Cash Flow Statement for Seven Years
x Projected Balance Sheet for Seven Years
xi Repayment Schedule for Seven Years
xii Payback Period
xiii Break-Even Analysis
xiv Debt Service Coverage Ratio

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A. Fixed Capital Investment
1 Land Leased Avg.1 Kanal

Sub-Total 0.00
2 Civil Work Dimensions Area Sq.ft Rate/Sq.ft Amount

Shed (Inc.Storage &
Septic Pit) 30" X 20'' X10" 560 300.00 168,000.00
Sub-Total 168,000.00
3 Livestock Quantity Rate Amount

Ewes 56 8400.00 470400.00
Sub-Total 470,400
4 Equipement: Quantity Rate Amount

Feeding Equipment
Watering Equipment
Syntax Tank
Manuare Disposal Equipement
10% of Shed Cost 16800.00
Shearing Machine
Water Pump
Bukharis
First Aid Equipment
Sub-Total 16,800
5 Preliminary Expenses Amount
Advertisement Expenses
Travelling Expenses
10% of Livestock 47,040
Legal Expenses
Insurance on Livestock
Intererst during Moratorium 81,560
Sub-Total 128,600
Total Fixed Cost 783,800

6 Particulars (Initial Recurring Expenses) Amount
Stock of Medicine, Feed,Fodder for 120 days 67,200
Total Project Cost 851,000

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Annual Recurring Expenses
A Purchases
S.No Particulars Quantity/No. Rate/Livestock Amount
1 Feed & Fodder 56 900 50400
2 Grazing Expenses 56 200 11200
3 Medicine & Vaccines 56 100 5600
Total 67,200
B Utilities & Upkeep

S.No Particulars Per Month Per Annum
1 Heating & Lighting* 500 6000
2 Water 100 1200
Total 600 7200
*Power Agreement .5 Kwh flat rate Rs.500/Month
C Repairs & Maintenance

S.No Particulars Amount %age Per Month Per Annum
1 Building 168000 2% 280 3360
2 Equipement 16800 5% 70 840
Total 350 4200
D Selling & Distribution Expenses

S.No Particulars %age Per Month Per Annum
1 Sales 30082 360987
2 Marketing 5% 1504 18049

3 Hauling 5% 1504 18049
Total 3008 36099
E General Expenses
1 Rent 0.00 0.00

2 Telephone Expenses 1000.00 12000.00
Total 12000.00
F Salary & Wages

1 Remuneration 5000.00 60000.00

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STATEMENT SHOWING THE DEPRECIATION ON FIXED ASSETS

The Depreciation is calculated under Written-Down Value Method (WDV) with preliminary expenses amortized in 5
years.
BUILDING @ 5.00%
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year
Opening Balance 168000 159600 151620 144039 136837 129995 123495
Depreciation 8400 7980 7581 7202 6842 6500 6175
Closing Balance 159600 151620 144039 136837 129995 123495 117321
EQUIPMENT @ 10.00%
Opening Balance 16800 15120 13608 12247 11022 9920 8928
Depreciation 1680 1512 1361 1225 1102 992 893
Closing Balance 15120 13608 12247 11022 9920 8928 8035
PRELIMNERY EXPENSES
Opening Balance 128600 102880 77160 51440 25720 0 0
Less: 25720 25720 25720 25720 25720 0 0
Closing Balance 102880 77160 51440 25720 0 0 0
Assets Net of Depreciation

Particulars 1st 2nd 3rd 4th 5th 6th 7th
Building 159600 151620 144039 136837 129995 123495 117321
Equipment 15120 13608 12247 11022 9920 8928 8035
Net Block 174720 165228 156286 147860 139915 132424 125356
Total Depreciation 10080 9492 8942 8427 7944 7492 7068

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Repayment Schedule Yearly
Repayment of Principle amount along with Interest payments is calculated at the rate of 10.10% per
annum,the repayment period of Seven years and the moratorium period is of two quarters,in which an
enterprenuer is going to pay an interest amount only.
Term Loan Repayment
S.No. Particulars 0 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year
1 Balance 553,150 483765 406542 320597 224943 118484 0 0
2 Principle 0 -69385 -77223 -85946 -95654 -106459 -118484 0
3 Interest 0 0 -23104 -39550 -29842 -19037 -7012 0
4 Cash Outflow 69385 100327 125496 125496 125496 125496 0

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Sales Realization
This is assumed that the sale of lambs will be held in the season of festivals and marriages as the ratie is higher
than the normal price and the sale of wool and manure will be realized at market rate.
Livestock/Prog Mortality/ Quantity

S.No Particulars Price/Unit Amount
eny Culling (No./Cft/Kg)
45 4 29 8000 232960
1 Sale of Lamb
Sale of Culled
56 11 11
2 Ewes 7000 78400
3 Sale of Wool
56 112
Adult 8400
75
40 32
Progeny 2419.2
4 Sale of Manure
56 10
Adult 28000
50
40 5
Hogget 10080
7 7
5 Sale of Carcuss 100 728
360,987.20

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Projected Profitability statement for Six years of operation of unit

The projected income staement gives a snapshot of yearly performance of project and ins presented below:
S.No. Particulars Operating Years
A Year of Operation 1st 2nd 3rd 4th 5th 6th 7th
B Capacity Utilization (%) 100 100 100 100 100 100 100
C Sales/Revenue 360987 360987 360987 360987 360987 360987 360987
Purchases 67200 67200 67200 67200 67200 67200 67200
Salary & Wages 60000 60000 60000 60000 60000 60000 60000
D Gross Profit on Sales 233787 233787 233787 233787 233787 233787 233787
Less: Operating
Overhead Expenses
General Expenses 12000 12000 12000 12000 12000 12000 12000
Utilities & Upkeep 7200 7200 7200 7200 7200 7200 7200
Repairs & Maintenance 4200 4200 4200 4200 4200 4200 4200
Depreciation 10080 9492 8942 8427 7944 7492 7068
Sub-Total 33480 32892 32342 31827 31344 30892 30468
Less: Operating
Selling & Distribution
Expenses
Marketing 18049 18049 18049 18049 18049 18049 18049
Hauling 18049 18049 18049 18049 18049 18049 18049
Sub-Total 36099 36099 36099 36099 36099 36099 36099
E Gross Expenses 69579 68991 68441 67925 67443 66991 66566
F Operating Profit 164208 164796 165347 165862 166344 166797 167221
Less: Financial Expenses
Interest on Term Loan 0 23104 39550 29842 19037 7012 0
Less: Other Expenses
Preliminary expenses 25720 25720 25720 25720 25720 0 0
Sub-Total 25720 48824 65270 55562 44757 7012 0
G Cost of Sales (COS)/Total Cost 162499 185015 200911 190688 179400 141203 133766
H Profit Before Tax 138488 115973 100076 110300 121587 159785 167221
Less: Taxation 0 0 0 0 0 0 0
H Profit After Tax 138488 115973 100076 110300 121587 159785 167221
Reserve & Surpluses 138488 254461 354537 464837 586424 746209 913429
Appropriations
Less: Drawings 0 0 0 0 0 0 0
Term Loan Repayments 69385 77223 85946 95654 106459 118484 0
Sub-Total 69385 77223 85946 95654 106459 118484 0
Profit After Appropriations 69103 38750 14131 14646 15128 41301 167221

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Projected Cash Flow Statement for Seven years
S.NO. Particulars YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7
A Cash flow from operating activities
Receipts from customers 293787 360987 360987 360987 360987 360987 360987
Payments to suppliers 67200 67200 67200 67200 67200 67200 67200
Salary & Wages 60000 60000 60000 60000 60000 60000 60000
Selling & Distribution 36099 36099 36099 36099 36099 36099 36099
Total 186699 186699 186699 186699 186699 186699 186699

Net cash flow from operating activities 107088 174288 174288 174288 174288 174288 174288
B Cash flow from investing activities
Establishment 313400
Livestock 470400
Net cash flow from investing activities -783800 0 0 0 0 0 0
C Cash flow from financing activities
Promoters Contribution 0
Seed Capital 297850
Term Loan 553150
Re-Payments of Borrowings -69385 -77223 -85946 -95654 -106459 -118484 0
Payment of Interest 0 -23104 -39550 -29842 -19037 -7012 0
Net cash flow from Financing activities 781615 -100327 -125496 -125496 -125496 -125496 0
Net increase (decrease) in cash held 104903 73962 48792 48792 48792 48792 174288
Cash at beginning of period 0 104903 178865 227658 276450 325242 374035
D Cash at end of period 104903 178865 227658 276450 325242 374035 548323

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Projected Balance Sheet for Six years
Liabilities 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year
Promoters Contribution 0 0 0 0 0 0 0
Seed Capital 297850 297850 297850 297850 297850 297850 297850
Term loan 553150 483765 406542 320597 224943 118484 0
Repayments of Principle 69385 77223 85946 95654 106459 118484 0
Net loan Balance 483765 406542 320597 224943 118484 0 0
Reserve & Surpluses 138488 254461 354537 464837 586424 746209 913429
Total 920,103 958,853 972,984 987,630 1,002,758 1,044,059 1,211,279
Assets 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year
Livestock 470400 470400 470400 470400 470400 470400 470400
Gross Block 184800 174720 165228 156286 147860 139915 132424
Depreciation 10080 9492 8942 8427 7944 7492 7068
Net Block 174720 165228 156286 147860 139915 132424 125356
Preliminary Expenses 102880 77160 51440 25720 0 0 0
Current Assets 67200 67200 67200 67200 67200 67200 67200
Cash & Bank Balance 104903 178865 227658 276450 325242 374035 548323
Total 920,103 958,853 972,984 987,630 1,002,758 1,044,059 1,211,279

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Detailed Debt Service Coverage

The Debt service coverage ratio shows the ability of the unit to repay interest and principal amount of
composite loans.
S.no Particulars 1st 2nd 3rd 4th 5th 6th
A Source of funds
1 Profit after tax 138488 115973 100076 110300 121587 159785

2 Depreciation 10080 9492 8942 8427 7944 7492
3 Interest 0 23104 39550 29842 19037 7012
4 Preliminary expenses 25720 25720 25720 25720 25720 0
Total A 174288 174288 174288 174288 174288 174288
B Disposition of funds
4 Repayment of term loan 69385 77223 85946 95654 106459 118484

Total B (3+4) 69385 100327 125496 125496 125496 125496
C Debt service coverage ratio 2.51 1.74 1.39 1.39 1.39 1.39
D Average DSCR 1.63

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Break-Even Analysis
It suggests the level of capacity utilization,which the unit must attain in order to avoid any loss.
Particulars Ist 2nd 3rd 4th 5th 6th 7th
A) Sales 360987 360987 360987 360987 360987 360987 360987
B) Variable cost 103299 103299 103299 103299 103299 103299 103299
Purchases 67200 67200 67200 67200 67200 67200 67200
Selling & Distribution 36099 36099 36099 36099 36099 36099 36099
C) Contribution 257688 257688 257688 257688 257688 257688 257688
D) Fixed costs 119200 141716 157612 147389 136101 97904 90468
Interest Payments 0 23104 39550 29842 19037 7012 0
Salary & Wages 60000 60000 60000 60000 60000 60000 60000
Depreciation 10080 9492 8942 8427 7944 7492 7068
Preliminary expenses 25720 25720 25720 25720 25720 0 0
E) B-E Point (%) 46.26% 55.00% 61.16% 57.20% 52.82% 37.99% 35.11%
F) Avg.B-E Point (%) 49.36%

www.jkedi.org 21

Model Sheep Farm

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Model Sheep Farm

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Jammu and Kashmir Entrepreneurship Development Institute (JKEDI)

DETAILED PROJECT REPORT

M/S.Model Sheep Farm

SEED CAPITAL FUND SCHEME

Jammu Campus: 0191-2474512/Kashmir Campus: 01933-224362/Ladhak Campus: 01982-252239

1 Name Of Unit: M/S. Model Sheep Farm

2 Name of the Entreprenuer: Mr./Ms.

3 Name of Father /Spouse Mr./Ms.

6 Legal Status: Sole Propreitorship

7 Activity: Sheep Farming

9 Total Cost of Project :

11 Unit Size (No.Of Ewes) 56

12 Moratorium Period: 1 Year

13 Break Even Point: 49.36%

14 Projected Sales : 360,987

15 Debt Service Coverage Ratio: 2

Jammu Campus: 0191-2474512/Kashmir Campus: 01933-224362/Ladhak Campus: 01982-252239

Total Project Cost (A+B) 851,000

S.No Particulars Percentage Amount (Rs.)

Jammu Campus: 0191-2474512/Kashmir Campus: 01933-224362/Ladhak Campus: 01982-252239

II. Setting up Sheep Farm

III. Selecting Proper Breed

Jammu Campus: 0191-2474512/Kashmir Campus: 01933-224362/Ladhak Campus: 01982-252239

IV. Finding Age of Sheep flock

Age of sheep Sheep Number of teeth

Jammu Campus: 0191-2474512/Kashmir Campus: 01933-224362/Ladhak Campus: 01982-252239

VII. Lambing (Parturition) management

Jammu Campus: 0191-2474512/Kashmir Campus: 01933-224362/Ladhak Campus: 01982-252239

VIII. Breeding Management

Feet and legs

Jammu Campus: 0191-2474512/Kashmir Campus: 01933-224362/Ladhak Campus: 01982-252239

Scrotal circumference (cm)

Ram to Ewe Ratio

Jammu Campus: 0191-2474512/Kashmir Campus: 01933-224362/Ladhak Campus: 01982-252239

XIII. MARKET AND DEMAND

XIV. Feeding Schedule

XVI. Environmental Concerns

Jammu Campus: 0191-2474512/Kashmir Campus: 01933-224362/Ladhak Campus: 01982-252239

22 Wool Production Per Annum (Kg) Ewe Lamb Rate/Kg

Jammu Campus: 0191-2474512/Kashmir Campus: 01933-224362/Ladhak Campus: 01982-252239

Background of Entreprenuer & Project

vii Projected Sales

viii Projected Profit & Loss Account for Seven Years

xiv Debt Service Coverage Ratio

Jammu Campus: 0191-2474512/Kashmir Campus: 01933-224362/Ladhak Campus: 01982-252239

A. Fixed Capital Investment

1 Land Leased Avg.1 Kanal

2 Civil Work Dimensions Area Sq.ft Rate/Sq.ft Amount

3 Livestock Quantity Rate Amount

4 Equipement: Quantity Rate Amount

Total Fixed Cost 783,800

Total Project Cost 851,000

Jammu Campus: 0191-2474512/Kashmir Campus: 01933-224362/Ladhak Campus: 01982-252239

Annual Recurring Expenses

B Utilities & Upkeep

C Repairs & Maintenance

D Selling & Distribution Expenses

1 Sales 30082 360987

2 Marketing 5% 1504 18049

1 Rent 0.00 0.00

F Salary & Wages

Jammu Campus: 0191-2474512/Kashmir Campus: 01933-224362/Ladhak Campus: 01982-252239

STATEMENT SHOWING THE DEPRECIATION ON FIXED ASSETS

Assets Net of Depreciation