sheep fattening farm
TRANSCRIPT
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Pre-Feasibility Study
(Sheep Fattening Farm)
Small and Medium Enterprises Development Authority
Ministry of Industries & ProductionGovernment of Pakistan
www.smeda.org.pk
HEAD OFFICE
4th Floor, Building No. 3, Aiwan-e-Iqbal Complex, Egerton Road,
LahoreTel: (92 42) 111 111 456, Fax: (92 42) 36304926-7
REGIONAL OFFICE
PunjabREGIONAL OFFICE
SindhREGIONAL OFFICE
Khyber PakhtunkhwaREGIONAL OFFICE
Balochistan3rdFloor, Building No. 3,
Aiwan-e-Iqbal Complex,
Egerton Road Lahore,
Tel: (042) 111-111-456
Fax: (042) [email protected]
5TH Floor, Bahria
Complex II, M.T. Khan Road,
Karachi.
Tel: (021) 111-111-456
Fax: (021) [email protected]
Ground Floor
State Life Building
The Mall, Peshawar.
Tel: (091) 111-111-456
Fax: (091) [email protected]
Bungalow No. 15-A
Chaman Housing Scheme
Airport Road, Quetta.
Tel: (081) 2831623, 2831702
Fax: (081) [email protected]
Note: All SMEDA Services / information related to PM's Youth Business Loan areFree of Cost
December, 2013
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Table of Contents
1. DISCLAIMER ...................................................................................................2
2.
purpose of the document .............................................................................2
3. Introduction to SMEDA .................................................................................3
4. Introduction to Scheme ................................................................................3
5.
Executive Summary .......................................................................................3
6. Brief description of Project & Product .....................................................4
7. Critical Factors ................................................................................................4
8. Installed & Operational Capacities ............................................................4
9.
Geographical Potential for Investment ....................................................5
10. Potential Target Markets / cities ..............................................................5
11. Production Process Flow ..........................................................................5
11.1 Breed Selection.......................................................................................................... 511.2 Characteristics of Breeds Recommended for Sheep Fattening:........................ 5
12. Project Cost Summary ...............................................................................6
12.1 Project Economics..................................................................................................... 612.2 Project Financing....................................................................................................... 7
12.3
Project Cost................................................................................................................ 7
12.4 Space Requirement................................................................................................... 712.5 Machinery and Equipment........................................................................................ 812.6 Human Resource Requirement............................................................................... 812.7 Revenue Generation................................................................................................. 8
13. CRITICAL FACTOR ......................................................................................9
14.
Annexure ......................................................................................................10
14.1 Income Statement.................................................................................................... 1014.2 Project Balance Sheet ................................................................................................. 11
14.3
Project Cash Flow Statement ...................................................................................... 12
14.4 USEFUL PROJECT MANAGEMENT TIPS ............................................................ 13
14.5 USEFUL LINKS ........................................................................................................ 14
15. . Key Assumpt ion ......................................................................................17
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11.. DDIISSCCLLAAIIMMEERR
This information memorandum is to introduce the subject matter and provide a general
idea and information on the said subject. Although, the material included in this
document is based on data / information gathered from various reliable sources;
however, it is based upon certain assumptions which may differ from case to case. The
information has been provided on as is where is basis without any warranties or
assertions as to the correctness or soundness thereof. Although, due care and diligence
has been taken to compile this document, the contained information may vary due to
any change in any of the concerned factors, and the actual results may differ
substantially from the presented information. SMEDA, its employees or agents do not
assume any liability for any financial or other loss resulting from this memorandum in
consequence of undertaking this activity. The contained information does not preclude
any further professional advice. The prospective user of this memorandum is
encouraged to carry out additional diligence and gather any information which isnecessary for making an informed decision, including taking professional advice from a
qualified consultant / technical expert before taking any decision to act upon the
information.
For more information on services offered by SMEDA, please contact our website:
www.smeda.org.pk
22.. PPUURRPPOOSSEEOOFFTTHHEEDDOOCCUUMMEENNTT
The objective of the pre-feasibility study is primarily to facilitate potential entrepreneursin project identification for investment. The project pre-feasibility may form the basis of
an important investment decision and in order to serve this objective, the document /
study covers various aspects of project concept development, start-up, production,
marketing, finance and business management.
The purpose of this document is to facilitate potential investors in Sheep Fattening
Farm by providing them a general understanding of the business with the intention of
supporting potential investors in crucial investment decisions.
The need to come up with pre-feasibility reports for undocumented or minimally
documented sectors attains greater imminence as the research that precedes suchreports reveal certain thumb rules; best practices developed by existing enterprises by
trial and error, and certain industrial norms that become a guiding source regarding
various aspects of business set-up and its successful management.
Apart from carefully studying the whole document one must consider critical aspects
provided later on, which form basis of any investment decision.
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33.. IINNTTRROODDUUCCTTIIOONNTTOOSSMMEEDDAA
The Small and Medium Enterprises Development Authority (SMEDA) was established in
October 1998 with an objective to provide fresh impetus to the economy through
development of Small and Medium Enterprises (SMEs).
With a mission "to assist in employment generation and value addition to the national
income, through development of the SME sector, by helping increase the number, scale
and competitiveness of SMEs" , SMEDA has carried out sectoral research to identify
policy, access to finance, business development services, strategic initiatives and
institutional collaboration and networking initiatives.
Preparation and dissemination of prefeasibility studies in key areas of investment has
been a hallmark of SME facilitation by SMEDA.
Concurrent to the prefeasibility studies, a broad spectrum of business development
services is also offered to the SMEs by SMEDA. These services include identification ofexperts and consultants and delivery of need based capacity building programs of
different types in addition to business guidance through help desk services.
44.. IINNTTRROODDUUCCTTIIOONNTTOOSSCCHHEEMMEE
Prime Ministers Small Business Loans scheme, for young entrepreneurs, with an
allocated budget of Rs. 5.0 Billion for the year 2013-14, is designed to provide
subsidised financing at 8% mark-up per annum for one hundred thousand (100,000)
beneficiaries, through designated financial institutions, initially by National Bank of
Pakistan (NBP) and First Women Bank Ltd. (FWBL).
Small Business Loans upto 2 million with tenure up to 8 years, inclusive of grace period
of 1 year and a debt: equity of 90: 10 will be disbursed to SME beneficiaries across
Pakistan, covering; Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan, Gilgit Baltistan,
Azad Jammu & Kashmir and Federally Administered Tribal Areas (FATA).
SMEDA has been tasked with an advisory role in the implementation of PMs scheme
by providing fifty (50) updated pre-feasibilities for referencing by SME beneficiaries and
participating banks to optimally utilize their financial resources.
55.. EEXXEECCUUTTIIVVEESSUUMMMMAARRYY
Sheep Fattening Farm is proposed to be located at suitable areas of Balochistan. The
project is related to Sheep fattening purposes, the total capacity is 450 Sheep with initial
utilization of 70% (315 sheep). Project Cost Estimate is Rs. 2.19 Million with fixed
investment of Rs. 1.29 Million and working capital Rs. 0.90 Million. Given the cost
assumptions, IRR and payback are 46% and 3.10 years respectively
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The most critical considerations or factors for success of the project are
1. Selection of Quality Sheep
2. Farm Management
Livestock in Balochistan holds great potential towards contributing to increased incomes
of the farmers. Growth in output has varied over the years, but in general has barely
kept pace with population growth.
66.. BBRRIIEEFFDDEESSCCRRIIPPTTIIOONNOOFFPPRROOJJEECCTT&& PPRROODDUUCCTT
Following key parameters pertaining to subject pre-feasibility study are elaborated to
briefly describe the project.
Location:The farm is to be established in sheep rearing areas of country where
range grazing is available. In Balochistan Southern, Northern & Central aresuitable areas to establish sheep farm. Major production areas in Balochistan
include Kalat, Khuzdar, Kharan, Mastung, Noshki Mashkel, Sibi, Naseerabad,
Jaffarabad, Kohlo, Dera Bugti, Killa Saifullah, Ziarat, Loralai, Zhob, Barkhan and
Lasbela Districts
Product (Breed): The most suitable breeds for fattening include Balochi,
Harnai and Bibrik sheep. The farmer not only has to select the better breed
which can bring results for fattening but also have to select most suitable animals
from the selected breed. Through better management, the weight gain of these
selected breeds would be higher.
Target Market: In addition to local markets in Karachi, Lahore and Islamabad
there is an enormous export potential in Middle Eastern countries.
Employment Generation: The proposed project will provide direct employment
to 4 people. Financial analysis shows that the farm shall be profitable from the
very first year of operation
77.. CCRRIITTIICCAALLFFAACCTTOORRSS
Swift increase in consumption/demand of live stock products.
Increasing demand of by-products such as blood, skin, etc.
Technological improvement in livestock production and processing.
88.. IINNSSTTAALLLLEEDD&& OOPPEERRAATTIIOONNAALLCCAAPPAACCIITTIIEESS
The farm will start production with 315 sheep (70% of total capacity). The farm will
achieve maximum capacity of 405 sheep (90% of total capacity) in its 7th year. The limit
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of 450 sheeps has been imposed on the farm because a very large flock would be
difficult to manage. The farm would focus on rearing of young stock for fattening and
marketing. Lambs from six to eight months of age will be purchased and resold in the
market after a fattening period of 120 days.
99.. GGEEOOGGRRAAPPHHIICCAALLPPOOTTEENNTTIIAALLFFOORRIINNVVEESSTTMMEENNTT
In Balochistan, contribution of livestock is estimated to be 40% towards agriculture.
Livestock is the main source of income of more than 75% of the people inhabiting the
countryside of Balochistan. The potential areas for investment to establish proposed
project are in sheep rearing areas of country where grazing is available. Southern,
Central and some Northern parts of Balochistan are suitable areas to establish sheep
farms. Major breeding areas in Balochistan include Kalat, Khuzdar, Kharan, Mastung,
Noshki Mashkel, Sibi, Naseerabad, Jaffarabad, Kohlo, Dera Bugti, Killa Saifullah, Ziarat,
Loralai, Zhob, Barkhan and Lasbela Districts.
1100..PPOOTTEENNTTIIAALLTTAARRGGEETTMMAARRKKEETTSS//CCIITTIIEESS
Target market would be the areas where breeding is being undertaken as well as majorcities like Karachi, Lahore, Rawalpindi, Islamabad, Peshawar etc. In addition to localmarkets there is an enormous export potential to Middle Eastern countries.
1111..PPRROODDUUCCTTIIOONNPPRROOCCEESSSSFFLLOOWW
Animals selected for fattening should be from six to eight months of age. At this age the
animal is weaned and starts eating green fodder and grass. As compared to grown up
sheep the daily weight-gain capacity is also better at this age. Weight and age of all the
selected animals should also be similar otherwise the larger and older animals wouldnot let the smaller animals to eat feed according to their requirement. Selected animals
should not be sick, weak or with physical disabilities.
1111..11 BBrreeeeddSSeelleecctt iioonn
The farmers should not only select good quality breed which can bring better results for
fattening but also select most suitable animals from the selected breed. Through better
management, the weight gain of these selected breeds would be higher. The most
suitable breeds for fattening include Balochi, Harnai and Bibrik sheep.
The animals should be tagged on arrival to the farm. The information to be recorded
includes breed, live weight, age and date of purchase etc.
1111..22 CChhaarraacctteerriisstt iiccssooffBBrreeeeddssRReeccoommmmeennddeeddffoorrSShheeeeppFFaatttteenniinngg::
1111..22..11BBaalloocchhiiSShheeeepp
Balochi sheep is a large sized fat tailed breed, found in Central, Southern and some
South-western parts of the Balochistan. It is used for meat and milk. Coarse wool is also
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collected from it. Its fleece is white with pigmented head and legs. Body weight of adult
varies between 35 and 40 Kg, milk yield is between 40-50 kg in a period of about 125
days. The average fleece production is 1.3 1.8 kg.
1111..22..22BBiibbrriikk
It is a fat and short tailed, mutton type sheep that is found in parts of Loralai Kohlu,
Bugti, Barkhan, Musakhel and Sibi districts in Balochistan province. It is a medium size
breed. Body colour is white with black or brown head. The wool yield is about 1.7 kg.
Average adult live-weight is 27 kg.
1111..22..33HHaarrnnaaii
Harnai is a fat tail, mutton / wool type breed. It is found in parts of Loralai, Quetta, Sibi
and Zhob districts in Balochistan. It is medium sized with a white body coat and a black
or tan spotted head and ears. The wool yield is 2.6 kg with medium fiber diameter. Its
wool is dense and heavy. Average adult body weight is around 30-32 kg. The breedalso produces excellent quality mutton.
1122..PPRROOJJEECCTTCCOOSSTTSSUUMMMMAARRYY
A detailed financial model has been developed to analyze the commercial viability of
Sheep Fattening Farm. Various cost and revenue related assumptions along with
results of the analysis are outlined in this section.
The projected Income Statement, Cash Flow Statement and Balance Sheet are
attached as appendix
1122..11 PPrroojjeecctt EEccoonnoommiiccss
All the figures in this financial model have been calculated for 315 sheep for total area
of around 9,400 sq.ft, that would be used for different functions of the farm.
The following table shows internal rates of return and payback period.
TTaabbllee11--PPrroojjeecctt EEccoonnoommiiccss
Description DetailsInternal Rate of Return (IRR) 46%
Payback Period (yrs) 3.10
Net Present Value (NPV) 6,873,512
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1122..22 PPrroojjeecctt FFiinnaanncciinngg
Following table provides details of the equity required and variables related to bankloan;
Description DetailsTotal Equity (@ 10%) Rs. 218,884
Bank Loan (@ 90%) Rs. 1,969,955
Markup to the Borrower (%age/annum) 8%
Tenure of the Loan (Years) 8
Grace Period (Year) 1
1122..33 PPrroojjeecctt CCoosstt
Following requirements have been identified for operations of the proposed business.
TTaabbllee11:: PPrroojjeecctt IInnvveessttmmeennttffoorrtthheePPrroojjeecctt
Project Investment Amount (Rs.)
Land 91,233
Building 664,800
Machinery & Equipment 367,500
Furniture & Fixture 10,000
Pre-operating Cost 158,839
Total Capital Cost 1,292,372
Initial Working Capital 896,466
Total Project Cost 2,188,839
1122..44 SSppaacceeRReeqquuiirreemmeenntt
Details of the area required are given below:
TTaabbllee22:: SSppaacceeRReeqquuii rreemmeenntt
Item Space /Animal
Sq.ft.
TotalAreaSq.ft.
Cost /Sq.ft. (Rs.)
Total cost.Rs.
Owners Room 144 500 72,000
Shed Space 20 3,000 150 450,000
Stores for Raw Material 240 300 72,000
Attendants Room 136 300 40,800
Open Paddock 40 6,000 5 30,000
Total Cost 664,800
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Total investment in building and infrastructure is calculated to be approximately Rs. 0.66million.
1122..55 MMaacchhiinneerryyaannddEEqquuiippmmeenntt
Following table provides list of machinery and equipment required for Sheep FatteningFarm working for Livestock sector.
TTaabbllee33:: LLiisstt ooffMMaacchhiinneerryyaannddEEqquuiippmmeenntt
Description Unit Unit Price(Rs.)
Total Cost.(Rs.)
Chopper 1 15,000 15,000
Water Pump with boring 1 250,000 250,000
Mangers 10. 2,500 25,000
Tubs 5 1,500 7,500
Hand Cart 1 5,000 5,000
Weigh Scale 1 50,000 50,000
Misc 1 15,000 15,000
Total 367,500
1122..66 HHuummaannRReessoouurrcceeRReeqquuiirreemmeenntt
TTaabbllee44:: HHuummaannRReessoouurrcceeRReeqquuii rreemmeenntt
Description No. of
Employees
Salary per
monthOwner / Manager 1 25,000
Farm Attendants 3 30,000
Total Staff 4 55,000
The table above provides details of human resource required for sheep fattening farm.
1122..77 RReevveennuueeGGeenneerraatt iioonn
Product
Sales
Price(Rs./Unit)
First Year
Production(Sheep)
First YearSales
Revenue(Rs)
Sale of Live Sheep 12,375 315 3,898,125
Total Sales Revenue 3,898,125
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1133..CCRRIITTIICCAALL FFAACCTTOORR
Establishment of the farm in areas where cheap land is available, but still not very
far from the animal markets.
The farming should be done on scientific grounds taking care of Vaccination,
Medicine etc.
Healthy and attractive local female without horn should be selected, as it has
better characteristics compatible with the local environment.
Healthy and quality male stock should be selected for breeding.
New feeding techniques including concentrate feeding and preparation of urea
molasses blocks, wheat straw treatment should be used for better results.
Well-trained / experienced staff adding to the efficiency of the farm.
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1144..AANNNNEEXXUURREE
1144..11 IInnccoommeeSSttaatteemmeenntt
Statement Summaries SMED
Income Statement
Rs. in actu
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year
Revenue 3,898,125 4,594,219 5,390,550 6,300,205 7,337,886 8,071,675 8,878,842 9,766,727 10,743,399 11,817
Cost of Goods Sold
Feed & Vaccination Cost 709,774 780,751 858,826 944,709 1,039,180 1,143,098 1,257,407 1,383,148 1,521,463 1,673
Cost of Sheeps 1,724,625 1,897,088 2,086,796 2,295,476 2,525,023 2,777,526 3,055,278 3,360,806 3,696,887 4,066
Direct Labor 360,000 396,000 435,600 479,160 527,076 579,784 637,762 701,538 771,692 848
Repair & Maintenance 15,000 16,875 18,900 21,085 23,442 24,614 25,845 27,137 28,494 29
Utilities 60,000 70,714 82,971 96,973 112,945 124,239 136,663 150,330 165,363 181
Total Cost of Sales 2,869,399 3,161,428 3,483,094 3,837,403 4,227,666 4,649,260 5,112,956 5,622,959 6,183,898 6,800
Gross Profit 1,028,726 1,432,791 1,907,456 2,462,802 3,110,220 3,422,414 3,765,886 4,143,767 4,559,501 5,016
General administration & selling expenses
Administration expense 309,000 339,900 373,890 411,279 452,407 497,648 547,412 602,154 662,369 728
T ravelling & Comm. expense (phone , fax, etc.) 60,000 66,000 72,600 79,860 87,846 96,631 106,294 116,923 128,615 141
Office vehicles running expense - - - - - - - - -
Office expenses (stationary, etc.) 7,500 8,250 9,075 9,983 10,981 12,079 13,287 14,615 16,077 17
Depreciation expense 104,230 104,230 104,230 104,230 104,230 104,230 104,230 104,230 104,230 104
Amortization expense 31,768 31,768 31,768 31,768 31,768 - - - -
Property tax expense - - - - - - - - -
Miscellaneous expense 19,491 22,971 26,953 31,501 36,689 40,358 44,394 48,834 53,717 59
Subtotal 531,988 573,119 618,516 668,620 723,921 750,945 815,617 886,756 965,008 1,051
Operating Income 496,738 859,672 1,288,940 1,794,182 2,386,299 2,671,469 2,950,270 3,257,012 3,594,493 3,965
Other income - - - - - - - - -
Gain / (loss) on sale of assets - - - - - - - - -
Earnings Before Interest & Taxes 496,738 859,672 1,288,940 1,794,182 2,386,299 2,671,469 2,950,270 3,257,012 3,594,493 3,965
Interest expense 163,505 149,691 131,534 111,870 90,574 67,510 42,533 15,482 -
Earnings Before Tax 333,233 709,981 1,157,407 1,682,312 2,295,725 2,603,959 2,907,737 3,241,530 3,594,493 3,965
Tax 66,647 141,996 231,481 336,462 459,145 520,792 581,547 648,306 718,899 793
NET PROFIT/(LOSS) AFTER TAX 266,586 567,985 925,925 1,345,850 1,836,580 2,083,167 2,326,190 2,593,224 2,875,594 3,172
Balance brought forward 266,586 834,571 1,760,496 3,106,346 4,942,926 7,026,093 9,352,283 11,945,507 14,821
Total profit available for appropriation 266,586 834,571 1,760,496 3,106,346 4,942,926 7,026,093 9,352,283 11,945,507 14,821,101 17,993
Dividend - - - - - - - - -
Balance carried forward 266,586 834,571 1,760,496 3,106,346 4,942,926 7,026,093 9,352,283 11,945,507 14,821,101 17,993
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1144..22 PPrroojjeeccttBBaallaanncceeSShheeeett
Statement Summaries SMED
Balance SheetRs. in actu
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year
Assets
Current assets
Cash & Bank 80,000 358,200 692,751 1,325,185 2,328,760 3,768,755 5,366,796 7,153,173 9,133,602 11,696,436 17,751
Accounts receivable - 213,596 232,667 273,555 320,295 373,646 422,180 464,398 510,838 561,921 618
Finished goods inventory - - - - - - - - - -
Eq uip me nt s pa re pa rt in ve nt ory 5,000 5,906 6,946 8,136 9,498 10,471 11,545 12,728 14,033 15,471
Raw material inventory 811,466 937,244 1,082,516 1,250,306 1,444,104 1,667,940 1,926,471 2,225,073 2,569,960 2,968,304
Total Current Assets 896,466 1,514,945 2,014,880 2,857,183 4,102,656 5,820,812 7,726,991 9,855,372 12,228,432 15,242,132 18,370
Fixed assets
Land 91,233 91,233 91,233 91,233 91,233 91,233 91,233 91,233 91,233 91,233 91
Building/Infrastructure 664,800 598,320 531,840 465,360 398,880 332,400 265,920 199,440 132,960 66,480
Machinery & equipment 367,500 330,750 294,000 257,250 220,500 183,750 147,000 110,250 73,500 36,750
Furniture & fixtures 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000
Office vehicles - - - - - - - - - -
Office equipment - - - - - - - - - -
Total Fixed Assets 1,133,533 1,029,303 925,073 820,843 716,613 612,383 508,153 403,923 299,693 195,463 91
Intangi ble asset s
Pre-operation costs 158,839 127,071 95,304 63,536 31,768 - - - - -
Leg al, licens in g, & training cos ts - - - - - - - - - -
Total Intangible Assets 158,839 127,071 95,304 63,536 31,768 - - - - -
TOTAL ASSETS 2,188,839 2,671,320 3,035,257 3,741,562 4,851,037 6,433,196 8,235,144 10,259,296 12,528,125 15,437,596 18,461
Liabilities & Shareholders' Equity
Current liabilities
Accounts payable - 185,893 207,352 231,395 258,349 288,551 322,370 360,347 403,018 450,993 316Total Current Liabilities - 185,893 207,352 231,395 258,349 288,551 322,370 360,347 403,018 450,993 316
Other liabilities
Long term debt 1,969,955 1,969,955 1,751,196 1,514,280 1,257,700 979,825 678,885 352,968 - -
To ta l Lo ng Te rm Lia bilit ie s 1,969,955 1,999,957 1,774,450 1,530,786 1,267,458 982,835 667,797 327,782 (39,284) (53,382) (67
Shareholders' equity
Paid-up capital 218,884 218,884 218,884 218,884 218,884 218,884 218,884 218,884 218,884 218,884 218
Retained earnings - 266,586 834,571 1,760,496 3,106,346 4,942,926 7,026,093 9,352,283 11,945,507 14,821,101 17,993
Total Equity 218,884 485,470 1,053,455 1,979,380 3,325,230 5,161,810 7,244,977 9,571,167 12,164,391 15,039,985 18,212
TOTAL CAPITAL AND LIABILITI 2,188,839 2,671,320 3,035,257 3,741,562 4,851,037 6,433,196 8,235,144 10,259,296 12,528,125 15,437,596 18,461
Note: Total assets valu e will di ffer from project cost du e to first instal lment of leases pa id at th e start of year 0- - - - - - - - - -
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1144..33 PPrroojjeeccttCCaasshhFFlloowwSSttaatteemmeenntt
- - - - - - - - - - -
Statement Summaries SMEDA
Cash Flow Statement
Rs. in actuals
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Operating activities
Net profit - 266,586 567,985 925,925 1,345,850 1,836,580 2,083,167 2,326,190 2,593,224 2,875,594 3,172,632
Add: depreciation expense - 104,230 104,230 104,230 104,230 104,230 104,230 104,230 104,230 104,230 104,230amortization expense - 31,768 31,768 31,768 31,768 31,768 - - - - -
Deferred income tax - 30,002 (6,748) (6,748) (6,748) (6,748) (14,098) (14,098) (14,098) (14,098) (14,098)
Accounts receivable - (213,596) (19,071) (40,888) (46,739) (53,352) (48,533) (42,218) (46,440) (51,084) (56,192)
Finished good inventory - - - - - - - - - - -
Equipment inventory (5,000) (906) (1,040) (1,191) (1,362) (974) (1,073) (1,183) (1,305) (1,438) 15,471
Raw material inventory (811,466) (125,777) (145,273) (167,790) (193,797) (223,836) (258,531) (298,603) (344,886) (398,344) 2,968,304
Accounts payable - 185,893 21,459 24,043 26,954 30,202 33,819 37,977 42,671 47,974 (134,823)
Other liabilities - - - - - - - - - - -
Cas h p ro vid ed b y o pe rat io ns (816,466) 278,200 553,311 869,350 1,260,155 1,717,871 1,898,980 2,112,294 2,333,397 2,562,835 6,055,524
Financing activities
Change in long term debt 1,969,955 - (218,759) (236,916) (256,580) (277,876) (300,939) (325,917) (352,968) - -
Issuance of shares 218,884 - - - - - - - - - -
Purchase of (treasury) shares - - - - - - - - - - -
Cash provided by / (used for) financ 2,188,839 - (218,759) (236,916) (256,580) (277,876) (300,939) (325,917) (352,968) - -
Investing activi ties
Capital expenditure (1,292,373) - - - - - - - - - -
Acquisitions - - - - - - - - - - -Cash (used for) / provided by invest (1,292,373) - - - - - - - - - -
NET CASH 80,000 278,200 334,552 632,434 1,003,575 1,439,995 1,598,041 1,786,377 1,980,429 2,562,835 6,055,524
Cash balance brought forward 80,000 358,200 692,751 1,325,185 2,328,760 3,768,755 5,366,796 7,153,173 9,133,602 11,696,436
Cash available for appropria tion 80,000 358,200 692,751 1,325,185 2,328,760 3,768,755 5,366,796 7,153,173 9,133,602 11,696,436 17,751,960
Dividend - - - - - - - - - - -
Cash carried forward 80,000 358,200 692,751 1,325,185 2,328,760 3,768,755 5,366,796 7,153,173 9,133,602 11,696,436 17,751,960
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Technology
List of Machinery & Equipment (As per Section 12.5)
Energy Requirement: Should not be overlooked. Alternate source of energyfor critical operations be arranged in advance.
Marketing
Product Development & Packaging: Expert's help may be engaged for
product / service and packaging design & development.
Ads & Point of Sale Promotion: Business promotion and dissemination
through banners is highly recommended.
Sales & Distribution Network: Expert's advise and strong networking with
livestock exporters and Atrhis of larger cities e.g. Karachi, Lahore, Rawalpindietc.
Price - Bulk Discounts, Cost plus Introductory Discounts: Price should
never be allowed to compromise quality. Price during introductory phase may
be lower and used as promotional tool. Product cost estimates should be
carefully documented before price setting. Government / Market Committee
controlled prices should be displayed, where applicable.
Human Resources
List of Human Resource (As per Section 12.6)
Adequacy & Competencies: Recruitment ofSkilled and experienced staff.
Performance Based Remuneration:Attempt to manage human resource cost
should be focused through performance measurement and performance based
compensation.
Training & Skill Development: Encouraging training and skill of self &
employees through experts and exposure to best practices is a route to
success. Least cost options for Training and Skill Development (T&SD) may be
linked with compensation benefits and awards.
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Prime Ministers Office, www.pmo.gov.pk
Government of Pakistan, www.pakistan.gov.pk
Ministry of Industries & Production, www.moip.gov.pk
Small & Medium Enterprises Development Authority (SMEDA),
www.smeda.org.pk
Ministry of Education, Training & Standards in Higher Education
http://moptt.gov.pk
Government of Punjab, www.punjab.gov.pk
Government of Sindh, www.sindh.gov.pk
Government of Khyber Pakhtunkhwa, www.khyberpakhtunkhwa.gov.pk
Government of Balochistan, www.balochistan.gov.pk
Government of Gilgit Baltistan, www.gilgitbaltistan.gov.pk
Government of Azad Jammu & Kashmir, www.ajk.gov.pk
Trade Development Authority of Pakistan (TDAP), www.tdap.gov.pk
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
www.fpcci.com.pk
State Bank of Pakistan (SBP), www.sbp.org.pk National Bank of Pakistan (SBP), www.nbp.com.pk
First Women Bank Limited (FWBL), www.fwbl.com.pk
Ministry of National Food Security & Research, www.mnfsr.gov.pk
Ministry of Education, Training & Standards in Higher Education,
www.moptt.gov.pk
Securities & Exchange Commission of Pakistan (SECP), www.secp.gov.pk
Punjab Board of Investment & Trade (PBIT), 23-Aikman Road, GOR-I,
Lahore
Tel. 042-99205201,www.pbit.gop.pk
Sindh Board of Investment (SBI), 1st Floor, Tower B, Finance & Trade
Center, Shahra-e-Faisal, Karachi, Tel. 021-99207512-4,www.sbi.gos.pk
All Pakistan Meat Exporters and Processors Association, Lahore,
www.apmepa.com
Punjab Agriculture and Meat Company (PAMCO), Lahore,www.pamco.bz
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http://www.pbit.gop.pk/http://www.sbi.gos.pk/http://www.apmepa.com/http://www.pamco.bz/http://www.pamco.bz/http://www.apmepa.com/http://www.sbi.gos.pk/http://www.pbit.gop.pk/ -
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Pakistan Agricultural Research Council (PARC), Islamabad, Tel. 051-
9203966 www.parc.gov.pk
National Agricultural Research Centre (NARC), Islamabad, Tel. 051-
9255061,www.parc.gov.pk
National Veterinary Laboratory, NARC, Islamabad, Tel. 051-9255108
Balochistan Agricultural Research Centre (BARC), Quetta, Tel: 081-
9213286-7, www.parc.gov.pk
Southern-zone Agricultural Research Centre (SARC), Karachi, Tel: 021-
99261661, 99261561, www.parc.gov.pk
Arid Zone Research Institute (AZRI), Bahawalpur, Tel: 0622-876833,
www.parc.gov.pk
Punjab Livestock & Dairy Development Board (PLDDB), 11- Shami Road,
Lahore Cantt. Tel. 042-36676821,www.plddb.pk
Faculty of Animal Husbandry, University of Agriculture, Faisalabad,
www.uaf.edu.pk Faculty of Veterinary Sciences, University of Agriculture, Faisalabad,
www.uaf.edu.pk
Faculty of Veterinary and Animal Sciences, Lasbela University of
Agriculture, Water & Marine Sciences, Lasbela,www.luawms.edu.pk
Faculty of Veterinary Sciences and Animal Husbandry, Sindh Agriculture
University, Tondojam,www.sau.edu.pk
Gomal College of Veterinary Sciences, Dera Ismail Khan,www.gu.edu.pk
KPK Agricultural University, Peshawar,www.aup.edu.pk
Pir Mehr Ali Shah Arid Agricultural University, Rawalpindi,www.uaar.edu.pk University College of Veterinary & Animal Sciences, Islamia University
Bahawalpur (IUB),www.iub.edu.pk
University of Veterinary & Animal Sciences (UVAS), Out Fall Road, Lahore,
www.uvas.edu.pk
College of Veterinary & Animal Sciences, Jhang,
www.uvas.edu.pk/other_campuses
Bahauddin Zakariya University (BZU), Multan,www.bzu.edu.pk
Animal Husbandry In-Service Training Institute (AHITI), Peshawar, Tel.
091-2960109, 9210309
Veterinary Research Institute (VRI), Ghazi Road, Lahore Cantt., Tel. 042-
99220140
Agribusiness Support Fund (ASF), Lahore,www.asf.org.pk
Directorate of Livestock Farms, L&DD, Lahore, Tel: 042-99201126-7
Govt. Livestock Farm (GLF) Kallurkot District Bhakkar, Tel: 0453-200928
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http://www.parc.gov.pk/http://www.parc.gov.pk/http://www.plddb.pk/http://uaf.edu.pk/http://uaf.edu.pk/http://www.luawms.edu.pk/http://www.sau.edu.pk/http://www.gu.edu.pk/N/faculties/Science/Veternary/Veterinary.asphttp://www.aup.edu.pk/http://www.uaar.edu.pk/http://www.iub.edu.pk/http://www.uvas.edu.pk/http://www.bzu.edu.pk/http://www.asf.org.pk/http://www.asf.org.pk/http://www.bzu.edu.pk/http://www.uvas.edu.pk/http://www.iub.edu.pk/http://www.uaar.edu.pk/http://www.aup.edu.pk/http://www.gu.edu.pk/N/faculties/Science/Veternary/Veterinary.asphttp://www.sau.edu.pk/http://www.luawms.edu.pk/http://uaf.edu.pk/http://uaf.edu.pk/http://www.plddb.pk/http://www.parc.gov.pk/http://www.parc.gov.pk/ -
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Livestock Experiment Station (LES), Rakh Ghulaman, District Bhakkar, Tel:
0453-446134
Livestock Experiment Station (LES), Khizarabad, District Sargodha, Tel:
048-3019835
Research & Development Centre, Rakh Khairewala, District Layyah
Livestock Experiment Station (LES), Khushab, Tel: 0454-215543
Livestock Experiment Station (LES), Chak Katora, District Bahawalpur, Tel:
062-2442589
Livestock Experiment Station (LES), Haroonabad, District Bahawalnagar,
Tel: 063-2252960
Directorate of BLPRI, Kherimurat (Attock), L&DD, Punjab, Tel: 057-
2213422, 2212130, 2210781
Directorate of Small Ruminants, Multan, L&DD, Punjab, Tel: 061-9210417
Directorate of Livestock Training Centre (LSTC), Bahadurnagar, Okara, Tel:
044-2661393
Livestock Training Centre (LSTC), Sheikhupura, Tel: 056-9200056
Livestock & Fisheries Department, Government of Sindh,www.sindh.gov.pk
Agriculture & Livestock Department, Government of KPK,
www.khyberpakhtunkhwa.gov.pk
Livestock Research Station, Jaba, Mansehra, (Jaba Sheep and Goat
Farm), Tel: 0997-301866
Livestock & Dairy Development, Government of Balochistan,
www.balochistan.gov.pk
Bhagnari Cattle Cum Balochi Sheep Farm Usta Muhammad, Dera Allah Yarc/o L&DD Quetta, Tel: 081-9202564
SMEDA Services / Information related to PMs Youth Business Loan are FREE OF COST - 16
http://www.sindh.gov.pk/http://www.khyberpakhtunkhwa.gov.pk/http://www.balochistan.gov.pk/http://www.balochistan.gov.pk/http://www.khyberpakhtunkhwa.gov.pk/http://www.sindh.gov.pk/ -
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Particulars Assumption
Sales Price Growth Rate 5 % per year
Capacity Utilization Growth Rate 5 % per year
Increase in Cost of Raw Materials 10 % per yearIncrease in Staff Salaries 10 % per year
Increase in Utilities (Electricity / Water / Gas) 10 % per year
Debt / Equity Ratio 90 : 10
Depreciation
Plant Building 10 % per annum
Machinery 10 % per annum
Office Furniture & Equipment 10 % per annum
Loan Period 8 Years (inclusive of 1 year graceperiod)
Loan Installments Quarterly
Financial Charges (Loan Rate) 08 % per annum