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HAMID INTERNATIONAL RICE MILL 2010

1

IQRA UNIVERSITY

IU

Report on :

Rice :

HAMID INTERNATIONAL RICE

Group members:

LUKMAN (4499)

HAMZA JAMAL (4856)

ANUM BUKHKARI (4718)AHMER KHAN (4853)

KASHIF ALI (6236)SAHAR AKBER (6284)

HUMAIR KHANANI (4000)

Course Title:Management Accounting

FALL 2010 Students

BBA

Submitted to:

Mr. Athar Iqbal

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ACKNOWLEDGMENT

We would like to express our whole hearted thanks to God who has blessed us with the

knowledge, insight and opportunity to work on this report.

We would also like to thank our respected teacher Mr. Athar Iqbal who has given us this

opportunity to explore our skills and made a product costing report on the HIR MILL. He

has given us thorough knowledge and provides deep understanding about costing

methodologies and because of that we are able to complete this final research.

We would also like to thank all people who helped us by giving valuable information

about the Various Components. Their positive responses helped us in preparing a

valuable Report. Special Thanks to FAME ENTERPRISES.

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Letter of Transmittal

Respected Sir,

We hereby present our Final Project report on HAMID INTERNATIONAL and the

product is SUPER BASMATI RICE assigned in our best efforts by collecting data

from various sources and we learn about the Concepts of Accounts in current market

applied by different Businesses in different ways.

The report has been prepared keeping the course requirement in mind. We have tried ourlevel best to apply the basic Accounting concepts taught to us. We hope that our work

meets your requirements by you as a mandatory part of our Course. In this report we have

tried to put and standard.

Though we have tried our best, but still humans are prone to errors. It was a great

learning experience .We hope this report would be to your liking and Hope you enjoy and

find our work satisfactory. If you have any further queries, we will please to satisfy.

Sincerely,

LUKMAN

HAMZA JAMAL

ANUM BUKHARI

AHMER KHAN

KASHIF ALI

SAHAR AKBAR

HUMAIR KHANANI

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HIR MILL

Company Profile:

HAMID INTERNATIONAL RICE (HIR), one of the leading Basmati Rice exporters of

Pakistan, has grown into an organization which is recognized for its remarkable

performance and supply of high quality rice to the customers. What sets us apart from

other manufacturers is our emphasis on building strong relationship with our customers

and targeting our efforts around the customer need.

Identification of Firm

FIRM NAME HAMID INTERNATIONAL RICE MILL

COMPANY

ADDRESS:

S-9, GULBAI, NEAR MERCHANT RICE, S.I.T.E. KARACHI.

CONTACT: MUHAMMAD REHAN AZAM

PHONE 021-32593918

EMAIL [email protected] /[email protected]

PAYMENT

TERMS

100% L/C at Sight

INVOICES TO BE

PAID TO

HIR MILL

TYPE OF FIRM Partnership

ESTABLISHED

YEAR

2000

BUSINESS

NATURE

Manufacturers, Exporters, Importers,Distributors.

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BANK BANK ALHABIB JODIA BAZAR KARACHI.

NUMBER OF

WORKERS

32

MANAGERIAL

STAFF

5

EXPORT

MARKETS

U.A.E

USA

SOUTH AFRICA

EGYPT

MALYSIA

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TECHNICAL INFORMATION

RICE RANGE SUPER BASMATI, SUPER KERNAL, IRRI-6, IRRI-9, SELLA

1121, 1121 BASMATI, 386

QUALITY A+ & broken percentages

ORIGIN OF RAW

MATERIALS

PUNJAB

MONTHLY

PRODUCTION

CAPACITY

2500-3000TON

DAILY

PRODUCTION

100TON

MINIMUM

ORDER

QUANTITY INTONS

25TON

TOTAL

MACHINES

15 (further divided into 4 process units)

TYPE OF

MACHINES

Husking, Soorting, Cleaning, Washing, Poolisher, Grain Adjuster

and all other required machines needed in rice manufacturing.

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Company History:

HAMID INTERNATIONAL RICE (HIR) brings you Basmati Rice from the lush green

and water filled fields of (Punjab) Pakistan, which are best suited to grow pure and

genuine Basmati Rice because the company believes in bringing premium quality rice for

its customers. Our aromatic rice includes Super White Basmati Rice and Parboiled Super

Basmati Rice. We are serving international customers and exporting premium quality

white Basmati and Parboiled rice to European and Middle East countries.

TYPES OF RICE:

Super Kernelis long grain rice with a slender kernel, four to five times longer that it'swidth. The grains are separate, light and fluffy when cooked, and mostly used for recipes

such as biryani, which require rice of a distinct shape and texture.

Basmati Rice 385, is dry and separate when cooked, resulting in long, thin grains, sincethe long grain increases only in length when cooked.

Brown Rice, is the least processed form of rice, as the kernels of rice have had only the

hull removed. The light brown colour of brown rice is caused by the presence of branlayers, which are rich in minerals and vitamins, especially the B-complex group. With a

natural aroma and flavour similar to that of roasted nuts or popcorn, it is chewier than

white rice, and slightly more nutritious, but takes longer to cook. Brown rice may be

eaten as is or milled into regular-milled white rice.

Parboiled Riceis rough rice that has gone through a steam-pressure process before

milling. It is soaked, steamed, dried, and then milled to remove the outer hull. This

procedure gelatinises the starch in the grain, and is adopted at the mill in order to harden

the grain, resulting in less breakage, thus ensuring a firmer, more separate grain.

Consumers and chefs who desire extra fluffy and separate cooked rice favour parboiledrice.

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WareHouse Faicility:

HIR houses a spacious and hygienic warehousing facility with the capacity of 10000 MT.

This allows the managements to be more flexible in their storage of raw materials and

also for production. Stocks are monitored time-to-time and fumigated.

Main Products are

1.Super Basmati2.IRRI-6 (PARBOILED)

3.IRRI-6 (5%&25% Broken)

4.IRRI-9 (5%Broken)

5.IRRI-9 (PARBOILED)

6.

386

7.1121 (SELLA)

8.1121 (white)

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HISTORY OF BASMATI:

Basmati, the king of rice, is held in the highest regard world over. Among all the othervarieties of rice, none have the distinctive long grains or the subtle aroma for which this

grain is considered so special. This also justifies the premium this rice commands against

all other rice of the world.

It takes birth in the most fertile valleys and plains of Pakistan. It is harvested by hand

with delicate care, aged to perfection and then processed. The result is an extra long,

pearly white, delicate grain with an irresistible aroma and delectable taste bringing alive

an age of nawabs and emperors, glittering courts and legendary chefs.

The name basmati originated from a Sanskrit word "BASH", which means smell. This

rice has special features, which make it's naturally long grain fragrant and delicious in

taste.

The legend says that this rice was meant to be consumed by maharajas (kings), maharanis

(queens), princes and royal families. This unique rice is just one crop a year grown only

in northern India and Pakistan, the region known as old Punjab - the land of five rivers

originating from Himalayas.

LOCAL MARKET:

Rice is the second largest food item of the pakistani household after wheat flour. During

the last decade, the production of rice in pakistan has been around 5 million ton per

anum. Around 2.9 millions ton of rice is available for domestic consumption of pakistan.

The per capita avalability of rice in pakistan is 20.78kg.

MARKET SEGMENTS:

According to buying power of the rice consumers, the market for rice can be broadly

categorized into three major groups. Lower income group, includes people with incomelevel of less than rs 300 per month. The majority market of broken rice and irri rice. The

price of broken rice is almost equivalent to the wheat prices.

MIDDELE INCOME GROUP, includes middle and upper incoome households in the

urban areas with monthly income of rs 5000-10000. This segment purchase good quality

rice ( polished rice as well as semi-polioshed rice) upper income group includes the upper

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income segment of the society, they prefer to buy high quality branded rice. The hotels

and resturants also purchase polished and semi polished rice for their different dishes.

RAW MATERIALS:

The raw materia of the husking unit is paddy, obtained from rice harvesting. The paddy

can be purchased from the local grain market(MANDI) as well as directly from the

farmers on cash basis. The paddy- harvesting season starts in mid of september and ends

in december.

Specifications of BASMATI RICE:

Product: Brown Rice (Cargo) / White Rice / Par-boiled Rice

Milling Grades: Double Polished / Silky Polished, Color Sortexed

Broken Percentage: 2% Max.

Average Grain Length (AGL): Super Basmati = 7.2 MM

Packaging: 1 / 2 / 5 / 10 / 25 / 50 Kgs Bags & Cartons

Packaging Material: Polypropylene, HDPE, PE, Cardboard Boxes, Cotton & Jute

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COSTING

SUPER BASMATI:

Super basmati rice is brought in the form of paddy from the farmers(fields) at the cost of

65 rupees per kg. At that time the rice is harvested from the field and is been transported

through trucks from field to factory at the cost of 45000 rupees.

Stages of production of SUPER BASMATI RICE:

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Storage:

In the last the rice is filled up in packing of bags which includes: 5kh, 10kg, 35kg , 25kg

and 50kg packing.

Statement of cost ofgoods sold

Raw Material Used [email protected] per kg.

1,625,000

Add: Transportation Cost

45,000

Net Purchases

1,670,000

Direct Labor @Rs. 0.5 per kg

12,500

Prime Cost

1,682,500

Add: Factory Overheads (Milling Cost)

25,000

COGS

1,707,500

Raw Rice Purchase @

Rs. 65 per kg

65TransportationCost

1.8

Total Cost of RawRice

66.8

Milling Cost

1.5

Wastage Cost

7.8

P.P bag cost

1Total CostIncurred

77.1

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Working to justify the wastag percentage

Total Rice 681,634

Ready Goods Lot # 1 KATTA 8280 READY RICE 50.25 KG 416,070 61.04

Ready Goods Lot # 2 KATTA 216 READY RICE 50 KG 10,800 1.58 69.15

Ready Goods Lot # 3 KATTA 889 READY RICE 50 KG 44,450 6.52

PONIA GRAIN KATTA 1740 50 KG 87,00036 per

kg

BROKEN 1 KATTA 1631 50 KG 81,55032 per

kg

BROKEN 2 KATTA 82 50 KG 432 per

kg

PIN POINT KATTA 13 50 KG 18 per

kg

DUST, STONE,

GARBAGE

KATTA 5 112 0.02

POWDER KATTA 540 18,937 2.78 15 per

kg

ELEVATOR/PADDY KATTA 7+9 1,125 0.17 21 per

kg

CSR KATTA 329 50 KG 16,27 per

kg

TOTAL GROSS WEIGHT 681,244 99.94

390 0.06

SHORTFALL/EXCESS

TOTAL NET WEIGHT 681,634 100

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