Download - Tobacco Company
Moonlight Tobacco Company
PROJECT REPORT
Moonlight Tobacco Company
MOONLIGHT TOBACCO COMPANY
SUBMITTED TO:
Mr. JAVAID IQBAL (Chairman)
SUBMITTED BY:
NAME ROLL NO
HUNAIN KHAN 32
SHAKEEL AHMED 57
FARZAN RAFI 53
Msc (Accounting & Finance) 3rd Semester
The Islamia University Bahawalpur Pakistan
Moonlight Tobacco Company
PREFACE
It is stated that the student of Department of Commerce
presently in M.sc (Accounting & Finance) 3rd semester have
given project on “MOONLIGHT TOBACCO COMPANY”
Department of Commerce is being aware of the importance
of practical training, requires every MSc (Accounting &
Finance) student to make a project Assignment.
We also have also visited a Tobacco Company Named as
Lakson Tobacco Company, Sahiwal, Qadra Abad.
We have tried our best to collect the knowledge and
information. It has broadened out knowledge and vision
about the market.
This Report is the Explanation of all work done by project
Team.
Moonlight Tobacco Company
DEDICATED
To
TO
Due to one person we are able to do such a works. He has
produce skills in our selves. We have dedicated all our work
to very
Intelligent Charming, Educated, And Lime light
For student The One and Best OUR Teacher:
Thank you Sir
Thank You Sir
Javaid Iqbal
Moonlight Tobacco Company
ACKNOWLEDGEMENT
Up and above everything, we are thankful to ALMIGHTY
ALLAH, the most Beneficent and merciful, and His Holy
Prophet (Peace be upon him) Who is forever a true torch of
guidance for whole humanity. We am greatly obliged to
“ALLAH” by Whom grace we have been able to complete
this Project Report successfully.
We also offer our thanks to Honorable Mr. Javaid Iqbal for
providing us a chance to work in such a Profitable Industrial
Project.
We also offer our thanks to Respect Parents for being
supports us in all means Financially and Mentally to
complete our work.
Moonlight Tobacco Company
History of Tobacco
Introduction
INTRODUCTION
Tobacco business is a centuries old business. It has a very
high growth rate and has seen many ups and downs. It has
also been controversial over the period of time and has been
subject to many types of criticisms. But apart from all these
things people do smoke and people want to keep on smoking.
I start my discussion with the history of tobacco.
EARLY TOBACCO USE
1,000 BC Ancient temple carvings depict Mayan priests in
Central America smoking tobacco through a pipe. Tobacco
leaves become widespread in medicine for use on wounds as
a means of reducing pain. Later the Aztecs incorporate
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smoke inhalation into religious rituals. Two castes of
smokers emerge: the pipe smokers at the court of
Montezuma and lesser Aztecs who roll the leaves into crude
cigars.
470 - 630AD Mayan tribes begin to scatter - and tobacco
travels with them. The leaf moves southwards to South
America where it is wrapped in maize and palm leaves and
smoked - and north where it is introduced to the native
Americans in the Mississippi area. In North America pipes
are made from clay, marble or lobster claws. Some pipes,
with two stems, are used for inhaling through the nostrils.
Tobacco chewing is common, especially in South America
where the leaf is mixed with lime.
1492 Arawak people in the Bahamas, on an island
Christopher Columbus christens San Salvador, offer the
explorer-dried leaves. Not understanding their significance,
Columbus discards them. A month later Rodrigo de Jerez
and Luis Torres – returning from a trip into the interior of
Cuba - stumble on villagers inhaling the smoke from
burning dried tobacco leaves through a hollow Y-shaped
piece of cane called a tobago or tobaca. Jerez is thought to
be the first smoker outside the Americas. When Jerez
returns to his home town of Ayamonte, during the Spanish
Inquisition, the holy inquisitors accuse him of "consorting
with the devil" when they see smoke coming from his mouth.
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He is imprisoned for seven years. By the time he is released,
smoking is a custom in Spain. Jerez perhaps sets a precedent
for the plant's controversial future.
1492: Arawak people in the Bahamans North America give
Christopher Columbus burning leaves, pipes are made from
clay, marble or lobster claws.
USE OF TOBACCO IN 20 TH Century
1900 The Anti Cigarette League publishes a pamphlet
claiming links between cigarette smoking and brain disease.
1902 The Imperial Tobacco Company of the United
Kingdom and The American Tobacco Company of the
United States agree to end a trade war by forming a joint
venture, the 'British-American Tobacco Company LTD'.
James B. Duke, becomes the venture's first chairman.
1908 The New York City authority bans women from
smoking in public. Two weeks later Katie Mulcahey is
arrested for violating the rule. As she is led away she
declares, "No man shall dictate to me". Cigarette smoking
was often seen as a symbol of women's emancipation.
1914Outbreak of World War I. General John J. Pershing,
commander-in-chief of the American forces in France in
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1917 calls tobacco "indispensable to the daily ration". In
Europe troops use cigarettes to pass time and to try to calm
their nerves. The popularity of cigarettes in the armed forces
associates tobacco with patriotism.
1925 Despite the bans, cigarette sales continue to increase.
The American Mercury reports, "The more violently it has
been banned, the more popular it has become."
1941 Roosevelt makes tobacco a protected crop as part of
the World War II war effort. His wife Eleanor was dubbed
"the first lady to smoke in public".
1945 During World War II, smoking increases. By the
middle of the next decade, more than a quarter of American
women and more than half of American men smoked
cigarettes.
1952 Two British researchers, Richard Doll and A. Bradford
Hill report the results of a four-year study comparing 1,465
lung cancer patients to an equal number of patients with
other diseases, matched for age, sex and region. They
conclude that lung cancer patients are considerably more
likely to be smokers and much more likely to be heavy
smokers.
1960s Public health warnings emerge.
1964The American Surgeon General publishes a 387-page
report stating, "Cigarette smoking is a health hazard of
sufficient importance in the United States to warrant
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appropriate remedial action." For the first time smoking is
banned in the State Department auditorium
1980s The tobacco industry sees substantial annual duty
increases which result in cigarette taxation increasing by 85
per cent or more in several countries including the UK.
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SEED TO STICK JOURNEY
Seed
The tobacco plant is a member of the same botanical family
as tomatoes, potatoes, peppers or eggplants. An adaptive
species, it can be grown economically from 50° Northern to
40° Southern latitude. More than 100 countries grow
tobacco. China is the largest producer, followed by the
United States, Brazil, India, Zimbabwe and Turkey.Tobacco
thrives in poorer soils, providing farmers with a welcome
alternative crop. In many cases, it provides a higher income
than any other smallholder crop. As a crop, it integrates well
into environmentally friendly rotations, and its inclusion
benefits subsequent crops like maize. A typical farmer in
rural Uganda, for example, with two to three hectares of
land can earn a good income from only a small part of that
land being planted with tobacco. British American Tobacco
can help the farmer by providing seeds and fertilizer and by
giving advice on planting, growing, harvesting and curing
tobacco and other crops.
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There are some 13,000 seeds in a gram -looking rather like
powdery instant coffee. The seeds are so small that they
must be nurtured in specially prepared and protected
seedbeds for 60 days before transplanting to the field. After
a couple of weeks, soil is banked up around the seedlings to
protect them and to allow them to develop a good root
system. Two months later, the plants' flowers and some of
the upper leaves are 'topped' in order to concentrate growth
in the remaining leaves (in the same way that tomatoes are
'pinched out'). All the time, the farmer needs to provide the
appropriate nutrition for the plant and watch out for pests
as the crop grows towards the harvesting stage.
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Harvest
With the exception of some countries such as the United
States (where the crop is mechanically harvested), the
farmer will typically harvest by hand, sequentially taking off
2-4 leaves per plant as the leaves ripen from bottom to top,
which stretches the harvesting period from over 2 to 4
months. The typical Ugandan farmer will harvest about
15,000 plants, each with 22 leaves.
Tobacco Types
Virginia is named after the US state where it was first
cultivated. It is also called "bright tobacco" because of its
yellow to orange color, achieved during the flue-cure. This
type grows particularly well in subtropical regions with light
rainfall, such as Georgia (USA), Southern Brazil and
Zimbabwe. Classic English brands like Benson & Hedges or
Dunhill use exclusively Virginia tobacco.
Burley is slightly lighter green than Virginia is. After being
air-cured, the tobacco turns brown with virtually no sugar,
giving it an almost cigar-like taste. It requires heavier soils
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and more fertilizer than Virginia does. The best Burley is
grown in the USA, Central America, Malawi and Uganda.
Together with Virginia and Oriental tobacco, it makes up an
American Blend, as used in brands like Lucky Strike or Pall
Mall.
Oriental is the smallest and hardiest of all tobacco types,
grown into the hot summer of the Balkans, Turkey and the
Middle East. These conditions and a high planting density
create an aromatic flavor, enhanced by sun curing, as in a
traditional Turkish cigarette.
Curing
Curing is a carefully controlled process to achieve the
texture, color and overall quality of a specific tobacco type.
During the cure, leaf starch is converted into sugar, the
green color vanishes and the tobacco goes through color
changes from lemon to yellow to orange to brown like tree
leaves in autumn.
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There are four main curing methods.
1-Air-Curing
Air cured tobacco, for example Burley, is hung in unheated,
ventilated barns to dry naturally until the leaf reaches a
light to medium brown color. At this point, there are
virtually no sugars left in the leaf.
2-Flue-Curing
Heat is introduced into a barn via pipes from an exterior
furnace like radiators connected to the central heating
system. This controlled heat allows the leaves to turn
yellow/orange at which point they are fixed. These leaves
now contain a high amount of sugar. Virginia tobacco is
flue-cured.
3-Sun-Curing
Leaves are strung out on racks and exposed to the sun. The
whole process takes from 12 to 30 days. The sun's direct heat
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fix the leaves at a yellow to orange color with a high sugar
content. Oriental is the most prominent among the sun-
cured tobaccos.
4-Fire-Curing
Fire curing follows the same principle as producing smoked
ham. Brushwood is burnt under the tobacco leaves, which
dries the tobacco and produces a Smokey fragrance. This
type is principally used in some pipe tobaccos such as
Dunhill Morning Mixture, or roll-your-own brands like
Samson or Javanese Jongens.
After curing, the farmer grades the leaves into different leaf
positions, qualities and colors and packs his grades into what
is known as a farmer bale of 30-50kg. He then takes his bales
to a buying center or auction for sale.
Processing
The cured leaf is then processed through a Green Leaf
Threshing Plant. The main purpose of the processing is to
remove sand, dust, scraps and foreign matter. Separate the
lamina from the stem (threshing). Drive down the tobacco to
a safe 'keeping moisture' content. Processed tobacco is
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packed into 200kg cardboard boxes, for shipping to
manufacturing sites.
Manufacturing
At the factory, the matured tobacco is checked for quality
and then carefully blended with other ingredients which the
brand recipe may call for, such as flavorings or pre-
processed tobacco. Keeping track of the various types of
tobacco and blend components is key and computers are
increasingly used to track production runs. Moisture content
is crucial. Too dry and the tobacco leaf will crumble; too
moist and it may spoil during storage. The blended tobacco
is treated with just the right amount of steam and water to
make it supple, and then cut into the form in which it
appears in the cigarette. Excess moisture is then removed so
that the cut tobacco can be given a final blending and
quality check.
Cigarette making, once done entirely by hand, is today
almost fully automated with the cut tobacco, cigarette paper
and filters continuously fed into the cigarette-making
machines. The technology has advanced dramatically over
the years, but quality is not forgotten; each cigarette is
automatically quality controlled to ensure that it meets every
aspect of its specification. As packing machines put them
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into the familiar brand packs, wrap the packs in protective
film, and group them into cartons and cases, further testing
takes place at each stage to make sure the cigarettes are
properly protected. The completed cases, time-dated to
ensure the freshest product possible, are then ready for
distribution
Moonlight Tobacco Company
EXCECUTIVE SUMMARY
Title: “Moonlight Tobacco Company”
Project Assignment:
Each student of MSc. (Accounting & Finance) 3rd semester
required to prepare a sold Project Assignment. The Project
assignment is given to Increase our knowledge about
“Project Management”.
Objectives:
SWOT analysis of Tobacco Company.
Identify and list down the all aspects and important points of
Tobacco Company .
What is a Production Process.
What is Cost of unit, Means of finance, Estimated income
statement, Estimated Balance sheet, etc.
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Approach to Project:
The Team of project will, analyze, summarize, and interpret
the data which is collected different primary and secondary
sources.
Data Collection:
Both primary and secondary means of data will be used to
collect the Data. Like Books, internet, personal visits,
teacher guidance and other information etc.
Primary Sources:
The Team of Project personally visited the the TOBACCO
Moonlight Tobacco Company
COMPANY for practical view: Unit selected is;
‘LAKSON TOBACCO COMPANY SAHIWAL’
Questionnaire:
Project Team has prepared a Questionnaire that contains 90
Questions and exist on 16 pages for Management of
‘LAKSON TOBACCO COMPANY SAHIWAL’
.
Moonlight Tobacco Company
Data Preparation & Analysis:
After collection of all the data through both primary &
secondary means, team will used MS. Word, MS. Excel, MS.
Power point etc.
Time Frame:
Time period is allowed is one month 12/12/2009 to
18/01/2010.
Limitation:
Team has visited the various people but the information
given by them is just based of approximation.
Name of Project
‘MOONLIGHT TOBACCO COMPANY’
Moonlight Tobacco Company
Location of Project
Head office: “ JAMPUR”
Tel: 0688-883302
Fax: +92-62-89846, 25643
Contact Person: Hunain Khan
( CEO)
E-mail: shakeelsmile@ yahoo.com
Shakeel Ahmed
Branch: Near Baghdad Road Jampur
Moonlight Tobacco Company
City
“Jampur- Pakistan”
Product
king size filter
Reguler size filter
Chocalate flavour
Menthol flavour
Installed Capacity
The capacity of project palnt produce 3240 cartons in a
month and in a year it produces 39010 cartons at 100%
Efficiency.
Moonlight Tobacco Company
Cost of Project
Fixed Cost 43445786
Initial Working Capital +35867550
Total cost of project 79313336
Means of Finance
Debt 48%
Equity 52%
Names of Lender
Bank Al-Falah Ltd. Circular road Bahawalpur.
Moonlight Tobacco Company
Names Of Sponsers
Adnan Ch.
Farhan Kheizer
Amir Fraz
Arslaan Rabbani
Names Of Civil Contractor
Irfan & Co. Green Market ,Karachi.
Names Of Machinary Supplier
Usman Engineering Limited Co.
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Financial Ratios
Year I II III IVEfficiency 65% 70% 75% 80%1- General Profitibility: 1- Gross Profit Ratio 14.8% 16.0% 16.6% 17.1%2- Operating Profit Ratio 12.3% 13.7% 14.3% 14.8%3- Net Profit Ratio 0.0% 0.0% 0.0% 0.0%4- Interest Coverage Ratio 4.4 6.6 9.7 15.2
Moonlight Tobacco Company
Market Analysis
Tobacco company in Pakistan of Last Five Years(tones)
2005 2006 2007 2008 2009
1979 1895 1656 2825 2675
596 636 880 950 1050
Present Demand
The Demand of tobacco in last few years is increasing
because the agriculture sector is now growing and the
demand of tobacco is also increasing.
Moonlight Tobacco Company
Distribution Channels
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List of Machinary
Description Quantity Cost per Item
Grainding HLP 1 1,500,00
Drying GD 1 1,150,00
Steaming 1 850,000
Molding Mark-9 1 2,130,00
Quality Control 1 1,570,00
Packing Machine 1 1,450,00
Film Machine 1 1,350,00
Electric Wringing 1 50,000
Generator (50 kVA) 1 2,500,00
Total cost of Machinery
Second hand paper
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Energy machinary
Moonlight Tobacco Company
Making and baking machine
Molding machine
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Raw material
RAW MATERIAL REQUIREMENT King size filter
( simple & flavor)
Material Description
RequiredAnnual
Unit Produced
Requirement of
Material in unit for annual
Production
Unit cost
Annually Cost each Material
Items
243,810,000
0 0 0 0 0 0 0 0 0 0
Tobbaco 70% 170,667,000
11 1,877,337,000
Paper 2% 4,876,200 1 4,876,200
Nicotin 7% 17,066,700
1.5 25,600,050
Cafine 6% 14,628,600
2 29,257,200
Choklate 3% 7,314,300 4 29,257,200
Menthol 5% 12,190,500
3 36,571,500
Filter 4% 9,752,400 2 19,504,800Film 2% 4,876,200 4 19,504,800Total Annual Cost
28.5 2,041,908,750
Per Unit Cost
8
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Regular size filter
Material Description
RequiredAnnual
Unit Produced
Requirement of
Material in unit for annual
Production
Unit cost
Annually Cost each Material
Items
243,810,000
0
0 0 0 0
Tobbaco 70% 170,667,000
9 1,536,003,000
Paper 2% 4,876,200 1 4,876,200
Nicotin 7% 17,066,700
2 34,133,400
Cafine 6% 14,628,600
1 14,628,600
Choklate 3% 7,314,300 3 21,942,900
Menthol 5% 12,190,500
3 36,571,500
Filter 4% 9,752,400 2 19,504,800Film 2% 4,876,200 2 9,752,400Total Annual Cost
23 1,677,412,800
Per Unit Cost
7
Material Description
Required
Annual Unit
Produced
Requirement of
Material in unit for annual
Production
Unit cost
Annually Cost each Material
Items
0 0 0 0 0 0Tobbaco 70% 170,667,00 9 1,536,003,0
Moonlight Tobacco Company
0 00Paper 2% 4,876,200 1 4,876,200Nicotin 7% 17,066,700 2 34,133,400Cafine 6% 14,628,600 1 14,628,600Choklate 3% 7,314,300 3 21,942,900Menthol 5% 12,190,500 3 36,571,500Filter 4% 9,752,400 2 19,504,800Film 2% 4,876,200 2 9,752,400
Total Annual Cost 23 1,677,412,800
Per Unit Cost #DIV/0!
Personel analysis
Descriptioon Numbe
rSalary per month
Rs,Annual
costCEO 1 45,000 540,000General Manager 1 40,000 480,000Financial Manager
1 40,000 480,000
Export Manager 1 40,000 480,000
Sectery 1 160,000 1,920,000
Accountant 1 17,000 204,000Clerks 4 10,000 480,000Computer operator
1 10,000 120,000
Recepnicet 1 8,000 96,000Time Keeper 3 8,000 288,000Drivers 2 7,800 187,200security Guard 3 8,500 306,000Gate keeper 3 6,500 234,000Office Attendence
2 6,500 156,000
Mali 1 6,000 72,000Sweepers 2 5,000 120,000
TOTAL 6,163,200
Financial Analysis
Moonlight Tobacco Company
In Financial Analysis we see the sources of finance and
calculate the ratios of our project that how much it is
profitable for us and also we make financial statements to
know that how much it is feasible for us.
Cost of Project
The total cost of project is Rs. 79313336
Means of Finance
In the sources of finance we take Loan from bank Al Falah
and the remaining is from the Sponsors.
Income Statement
MOONLIGHT TOBACCO COMPANY. JAMPUR
ESTIMATED INCOME STATEMENTS (In Rs)For the year ending Dec. 31, I II III IVEfficiency Assumed : 65% 70% 75% 80% SALES
a ) King size filter 45,322,436,677
54,286,784,423 58,181,101,813
62,075,419,204
b) Regular size filter 45,322,436,677
53,769,767,428 57,626,996,082
61,484,224,735
c) Flavours 54,766,760 65,599,105 70,304,923 75,010,741Total Sales 195,143,105 232,939,885 249,650,063 266,360,242Less: COST OF GOODS SOLD :
Raw Materials 2,417,559,008
2,733,701,339 2,928,965,721
3,124,230,102
Moonlight Tobacco Company
Labour 15,599,520 16,067,506 16,549,531 17,046,017Manufacturing Expenses 10,632,790 11,047,551 11,348,398 11,649,246Excise Duty \ Sales tax 3% 5,854,293 6,988,197 7,489,502 7,990,807Royalty fee (Straight
line method)
0 0 0 0
Deprication 2,086,929 2,086,929 2,086,929 2,086,929
Cost of Goods Manufactured 176,347,974 196,487,064 209,056,759 221,642,860Add: Opening Inventory 0 0 0 0Less: Ending Inventory 0 7,314,300 3 21,942,900
COST OF G00DS SOLD 166,181,136 195,704,999 208,274,695 220,860,795
G R O S S P R O F I T 28,961,969 37,234,886 41,375,369 45,499,446Less : OPERATING EXPENSES Admin & General Expenses 5,011,189 5,558,564 5,955,604 6,352,644
Selling Expenses 745,579,550 875,930,386 938,711,461 1,001,492,536
Total Operating Expenses
750,590,739 881,488,949 944,667,065
1,007,845,180
OPERATING PROFIT 24,096,844 31,875,811 35,687,830 39,483,443Add: OTHER INCOME 0 0 0 0Less: NON OPERATING EXPENSES Financial Expenses 7200000 6,837,041 5,397,041 3,957,041Amortzn. of Prelim. Exp 334,700 334,700 334,700 334,700Workers participation fund 4% 963,874 1,275,032 1,427,513 1,579,338workers wekfore fund 4% 963,874 1,275,032 1,427,513 1,579,338Total Operating Expenses
6,225,840 6,643,993 #REF! #REF!
Profit Transferred to Profit& losss Appropriaion account 17,871,004 25,231,819 29,548,876 33,850,840
Balance Sheet
MOONLIGHT TOBACCO (PVT)LTD COMPA NY . JAMPUR
Moonlight Tobacco Company
ESTIMATED BALANCE SHEETS
(In Rs)
As on Sept. 30, Construction year I II III IV
ASSETS
Fixed Assets
Fixed Assets at cost 53,318,186 53,318,186 53,318,186 53,318,186 53,318,186
Less: Accumulated Dprcn. 0 2,086,929 4,173,858 6,260,786 8,347,715
Net Fixed Assets 53,318,186 51,231,25749,144,32
847,057,400 44,970,471
Preliminary Expenses: 2,677,600 2,342,900 2,008,200 1,673,500 1,338,800
Total Fixed Assets 55,995,786 53,574,15751,152,5
2848,730,90
046,309,27
1
Current Assets
Cash 388,411,524 38,368,364 59,853,666
67,367,049
79,787,474
Marketable Securities 886,245 6,051,849 533,342 0 0
Accounts Receivables 7,805,724 9,757,155 11,113,652
10,482,503
13,318,012
Finished Goods Inventory 5,083,419 0 7,314,300 9,830,307 21,942,900
Raw Material Inventory 201,463,251 145,053,540 5,000,000 76,153,109
3,300,004
Stores & Spares 98,916 2,000,000 735,942 475,165 61,560
Advances & Depostis 1,000,000 1,500,000 3,000,000 4,500,000 4,300,000
Total Current Assets 46,449,102 75,847,930 91,185,505 96,856,979 105,152,049
TOTAL ASSETS 87,165,370 115,269,723129,312,8
22133,689,8
21151,461,3
20
LIABILITIES & EQUITY
Long-term Liabilities
Muslim Commercial Bank:
Outstanding Loan principal 45,000,000 45,000,00036,000,00
027,000,00
0 18,000,000
Moonlight Tobacco Company
Total Long-term Liab.: 45,000,000 45,000,00036,000,0
0027,000,00
018,000,00
0
Current Liabilities
- Accounts Payable 72,526,770 72,526,770 82,011,040
87,868,972
93,726,903
- Accrued Expenses 72,526,770 5,854,293 6,988,197 7,489,502 7,990,807
- Workers Partcpn. Fund 0 963,874 2,238,906 3,666,419 5,245,757
-Workers Welfare Fund 0 963,874 2,238,906 3,666,419 5,245,757
Provision for Taxation 0 2,144,521 5,172,339 8,718,204 12,780,305
- Bank Borrowings 2,577,829 4,980,998 4,606,988 5,078,203 6,457,761
outstanding loan instalments 0 7,200,000 15,837,041
14,397,041
12,957,041
Interest payable
Total Current Liabilities: 10,581,552 22,959,42135,925,0
0441,902,99
250,517,85
9
Total Liabilities 37,581,552 49,959,42157,525,0
0458,102,99
261,317,85
9
EQUITY
Equity 49,583,818 49,583,818 49,583,818
49,583,818
49,583,818
Balance c/d from Profit & loss appropriation account 0 15,726,484
22,204,000
26,003,011 29,788,739
Total Equity: 49,583,818 65,310,30271,787,8
1875,586,82
979,372,55
7
Total Liab. & Equity: 87,165,370 115,269,723129,312,8
23133,689,8
21140,690,4
16
R A T I O S: 0 0 0 0 0
Current Ratio 3.30 2.54 2.31 2.08
Debt as %-age of total captlsn.
29% 23% 18% 12%
Moonlight Tobacco Company
Cash Flow
MOONLIGHT TOBACCO (PVT)LTd COMPA NY . JAMPUR
E S T I M A T E D C A S H F L O W S (Rs. in 000)For the year ending Sept. 30,
Const. Yr. I II III IV
SOURCES
Operating Profit 0 24,096,844 31,875,811 35,687,830
39,483,443
Add Back: Depreciation
0 2,086,929 2,086,929 2,086,929 2,086,929
Amortization
0 334,700 334,700 334,700 334,700
Funds from Operations
0 25,391,319 33,170,287 36,982,305
40,777,918
other income 0 0 0 0 0
Equity 49,583,818
0 0 0 0
Loan from Mcb 45,000,000
0 0 0 0
- Custom Debentures 0 0 0 0 0Increase in Current Liab.
0 12,377,869 12,965,583 5,977,988 8,614,867
Increase in Bank Borrowings
2,577,829
2,403,170 534,640 471,215 1,379,558
TOTAL SOURCES 79,161,647
40,172,358 46,670,51042,522,85
750,772,344
APPLICATION OF FUNDS
Investment in Fixed Assets:
53,318,186
0 0 0 0
-Preliminary Exp 2,677,600
334,700 334,700 334,700 334,700
Financial Expenses 0 7,200,000 6,837,041 5,397,041 3,957,041Repayment of : 0 0 0 0 0Loan from Mcb 0 0 9,000,000 9,000,000 9,000,000Workers Partcpn. Fund 0 963,874 1,275,032 1,427,513 1,579,338-Workers Wel. Fund 0 963,874 1,275,032 1,427,513 1,579,338provision for tax 0 2,144,521 3,027,818 3,545,865 4,062,101profit distributed 0 0 0 0 0Increase in current Assets:
25,990,587
5,888,425 10,113,397 19,924,655
23,257,215
TOTAL 66,706,855
14,258,785 25,185,208 #REF! #REF!
Moonlight Tobacco Company
SWOT Analysis
Strengths:
The labour to cultivate the tobaccao is easily available we
can reach easily to low cost labour. Moreover the location
for our project is very attractive. We can avail maximum
advantage from this market.
Weaknesses:
Our weakness is that we are not producing tobacco up to the
present demand of the consumer. Because we have
dependend on tobacco & other raw materials and electricity
problem is also our weakness.
Opportunities:
Moonlight Tobacco Company
Pakistan is an agricultureal country, the production of
tobacco is very high. so, demand of tobacco is repedly
increases.also there is no enough tobacco company to fullfill
the demand so, there is great opportunity to establish
tobacco company.
Threats:
The market of the tobacco company is highly competitive;
therefore if the entrepreneur is not well responsive and
fulfilling the demand of the consumer he/she may not be
able to capitalize the opportunity properly..
Conclusion & Recommendations
We conclude that on the basis of survey of tobacco company
that the tobacco is neccessry product so its demand increse
day by day. There is no chance to decrease the demand of
tobacco. Pakista is an agricultural country and it plays a
very important role in our economy. Tobacco contributes
3.2% GDP in our economy. Availability of raw material is
very easy. So, conclusion is that the tobacco company is a
profit motive business because no chance of decrease of
demand.
Moonlight Tobacco Company
Our recommendation to new investors is that they
must invest in tobacco company. So, they step
forward to come and invest or to start this business,
and also contribute in the economic as well as social
groth of Pakistan.
Special thanks
We bow our head, before ALLAH Almighty, who
blessed us with potential and stamina to complete our
fesibility report on tobacco company.
First of all would like to pay our special regards to
Respected “Sir Mr. JAVED IQBAL” who provides us
guidance at each and every step, in completion of all
this fesibility report. We are especially thankful to
those personalities who help us in collecting data
during the visit and servey and also in our practical
work.
Moonlight Tobacco Company
In this regard our thanks goes to:
Mr:Arsalan Rabbani, Mr:jawad ul hassan, Mr:Hassan
Qureshi Mr: Mohsin shazad, Mr: Adnan Ch., Mr:
Farhan Khizer & Mr. Amir Faraz and all of our class
fellows