Anda di halaman 1dari 34

Anmol Animal Feed Mill

Department1of Commerce
Anmol Animal Feed Mill

A Project on:

Submitted To:

Sir Javeed Iqbal

Submitted By:

Muhammad Zeeshan 15
Muhammad Danish 44
Muhammad Mushtaq 52

M. Com 4th (Morning)


Session 2007-2009

Submitted To:

Department2of Commerce
Anmol Animal Feed Mill

Sir Javeed Iqbal

Department3of Commerce
Anmol Animal Feed Mill

1 Preface 5
2 Dedications 6
3 Acknowledgement 7
4 Executive Summary: 8
5 Company Profile 9
a. Address of Company
b. Location of Project
c. Product Range Mix
d. Installed Capacity
e. Capacity achieved
6 Estimated Cost of Project 12
f. Fixed Cost
g. Initial Working Capital
7 Means of Finance 12
8 Names of Financiers 13
9 Names of Civil Contractor 14
10 Names of Machinery Suppliers 14
11 Machinery Detail 15
12 Machinery 16
13 Implementation Schedule 17
14 SWOT Analysis 18
15 Market Analysis 19
16 Technical Analysis 20
17 Personnel Analysis 21
18 Financial Analysis 22
19 Schedule of Cost of Project 25
20 Assumptions 26
21 Project Return and Ratios, Means of Finance 27
22 Project Visit Highlights 28
23 End words 33

Department4of Commerce
Anmol Animal Feed Mill

Being aware of the importance of practical implementation of any newly established project,
the Department of Commerce (IUB) requires every M.Com student having specialization
in finance to go through feasibility of any project.

The purpose of the project feasibility is to broaden the vision of practical experiences with
theoretical knowledge as it increases one’s capabilities to handle problems at various stages
and the ability of decision.

We have tried our best to collect the valuable information and its relevant facts regarding the
animal’s food mill plant. We also have visited the plant working at Okara (Bahadar Nagar) and
Pattoki Natthey Stop for making our project reliable and successful.
This project concerning with animal food production namely “ANMOL ANIMAL FEED
MILL”.

GROUP NO. 08
Muhammad Zeshan
Muhammad Danish
Muhammad Mushtaq

Department5of Commerce
Anmol Animal Feed Mill

Department6of Commerce
Anmol Animal Feed Mill

“The Purpose of Education is to replace an empty mind with an open one"


All praise for ALLAH, the most merciful and his prophet Muhammad (PBUH) is for
every torch of guidance and knowledge for humanity. We offer humblest and sincerest words
of thanks to ALLAH Almighty who blessed us with potential and ability to make material
contribution to already existing ocean of knowledge. We are also grateful to the department of
Commerce who give us the opportunity of completing our project on “Anmol Animal Feed
Mill” and enhance our capabilities. This project is very much helpful us as we learn a lot by
applying theoretical knowledge in practical field.
We would also show our gratitude to our honorable and respected teacher the Chairman
of Department of Commerce Mr. JAVAID IQBAL Who furnished us with the opportunity to
complete this project, and thereby consolidating our concepts, enriching my knowledge,
establishing our skills and strengthening our confidence, especially his lectures.
Moreover, we are really very thankful to

C
ell# 0322-6978878
Livestock Research Center Okara (Bahadur Nagar)

of the Research Center Okara Animal Feed Mill, who gives us his precious time and valuable
information for doing this project. We are also thankful to other staff members of Research
Center Okara Animal Feed Mill for their cooperation & kindness; Mr.Dr.Akbar Buzdar who
helped us and polish our knowledge for animal feed unit.

We cannot forget the kindness & cooperation of Mr. Muhammad Ahmed we are very thankful
to them for their guidance & support.

Department7of Commerce
Anmol Animal Feed Mill

Animal feed industry is broadly classified in two main categories viz. (i) cattle feed
industry and (ii) poultry feed industry. While the former has not yet developed to any sizeable
extent the latter has expanded in an organized fashion.

Livestock production is an integral part of Pakistan's agriculture sector and plays a vital
role in national economy. At present, livestock is contributing about 52% to the agricultural
sector and 10.9% to the GDP. The role of livestock in rural economy may be Assessed by the
fact that 30 to 35 million of the total rural population is engaged in livestock farming, having 2
to 3 cattle/buffalo and 5 to 6 sheep/goats per family deriving 30 to 40 per cent of income from
it.

At present, Pakistan has 215 feed mills, but only few are preparing compound feed for
Livestock. Generally, mixed compound feeds are prepared at home by farmers. Feed accounts
for almost 70% of total cost of production of milk or meat. Hence a balanced feed will
positively affect milk and meat production of livestock

Anmol Animal feed Mill is designed with a wide range of processing capacity and product mix
depending upon the demand, according to availability of feedstuffs and their storage capacity.
However, it is suggested that the viable economic unit should have a capacity of preparing 5
ton of Anmol Rashon per hour.

Some of the poultry feed mills, which have the requisite machinery and equipment also,
occasionally produce cattle feed. But the total quantity thus produced is very small. It is
estimated at 5,000 to 6,000 tonnes per annum and is consumed locally in its ignorance of
livestock owners about the utility of concentrated feeds and therefore they resort to cheaper
conventional feedstuffs. Moreover, the livestock population is scattered in small flocks over
vast areas making its commercial distribution a difficult job.

Department8of Commerce
Anmol Animal Feed Mill

Address of Company:

Near A.C Bus Terminal Bahawalpur.

Head Office of Anmol Animal Feed Mill is Located in the heart of Bahawalpur city which is
easily approachable by key regions of Punjab.

The processing unit is located in district Lodhran near Main Permut By-Pass 1 Km at Jalal pur
pir wala Road

Unit is producing three basic types of “Anmol Rashon” for different categories of Animal
i.e.
• Anmol Wanda for Milky Animal

Department9of Commerce
Anmol Animal Feed Mill

• Anmol Rashon for Kid Animal

• Anmol Wanda for Meat Animal

Department10of Commerce
Anmol Animal Feed Mill

Installed capacity of our processing unit is 100 percent, which is 60 tonns per day

Currently the unit is achieving the capacity of 70 percent, which is 40 tonns per day

Department11of Commerce
Anmol Animal Feed Mill

Total Estimated cost of project is

Fixed Cost Rs.14483498


Initial Working Capital Rs.17, 208,460

Anmol Animal Feed Mill Ltd


PROJECT COST & MEANS OF FINANCE
(Rs.) (Rs.) (Rs.)
COST OF THE PROJECT LOCAL FRGN TOTAL
- Project Land & Its Development 751000 0 751000
- Building & Civil Works 4900000 0 4900000
-Foreign Machinery
MCB 0 3525000 3525000
- Local Machinery 725000 0 725000
-Insurance & clearance 70500 0 70500
- Engineering /Technical Fees 500000 0 500000
- Erection & Installation 212500 0 212500
- Furniture & Fixture 75000 0 75000
- Vehicles 850000 0 850000
- Mark-up during Construction 1274499 0 1274499
- Pre-production Expenses 1200000 0 1200000
- Contingencies 400000 0 400000
TOTAL FIXED COST: 10958498.63 3525000 14483498
- Initial Net Working Capital 43,653,340 0 17,208,460
TOATL COST OF THE PROJECT: 54611838.63 3525000 31,691,959

Pay Back Period 4.35 years


Net Present Value 31,505,747
Benefit cost Ratio 5.78

Equity 61%
Debt 39% MCB

Department12of Commerce
Anmol Animal Feed Mill

Muslim Commercial Bank Ltd.(Dubai Chowk Branch.)


Repayment Schedule of Loan
Name of Bank Muslim Commercial Bank Ltd.
Amount of Loan Rs. 10000000
Interest 9%
Date of Disbursement of Loan 1/1/2010
Date of Commercial Production 1/1/2011
Repayment of Principle installment 30/6/2011
Period of Loan (principle repayment) 5 years Years
Repayment of interest Quarterly Installment
Repayment of Principle installment Half yearly 10
No. of Principles Outstanding
Due Dates Mark Up Installment
Days Installment Principles
1/1/2010 10٫000000
31/3/2010 89 207747.945 207747.9452 10٫000000
30/6/2010 91 212416.438 212416.4384 10٫000000
30/9/2010 92 214750.685 214750.6849 10٫000000
31/12/2010 92 214750.685 214750.6849 10٫000000
31/3/2011 90 210082.192 210082.1918 10٫000000
30/6/2011 91 212416.438 1000000 1212416.438 9٫000000
30/9/2011 92 193275.616 193275.6164 9٫000000
31/12/2011 92 193275.616 1000000 1193275.616 8٫000000
31/3/2012 91 169933.151 169933.1507 8٫000000
30/6/2012 91 169933.151 1000000 1169933.151 7٫000000
30/9/2012 92 150325.479 150325.4795 7٫000000
31/12/2012 92 150325.479 1000000 1150325.479 6٫000000
31/3/2013 90 126049.315 126049.3151 6٫000000
30/6/2013 91 127449.863 1000000 1127449.863 5٫000000
30/9/2013 92 107375.342 107375.3425 5٫000000
31/12/2013 92 107375.342 1000000 1107375.342 4٫000000
31/3/2014 90 84032.8767 84032.87671 4٫000000
30/6/2014 91 84966.5753 1000000 1084966.575 3٫000000
30/9/2014 92 64425.2055 64425.20548 3٫000000
31/12/2014 92 64425.2055 1000000 1064425.205 2٫000000
31/3/2015 90 42016.4384 42016.43836 2٫000000
30/6/2015 91 42483.2877 1000000 1042483.288 1٫000000
30/9/2015 92 21475.0685 21475.06849 1٫000000
31/12/2015 92 21475.0685 1000000 1021475.068 0٫000000
Interest during
construction 849665.7534

Department13of Commerce
Anmol Animal Feed Mill

• ALLIED ENGINEERING & SERVICES LIMITED


44-Qasim Road, Imperial Cinema Building, Multan, Pakistan
• ADAMJEE CONSTRUCTION CO. LIMITED
39-A, PR-2, Abdullah Haroon Road, Saddar, Karachi, Pakistan

Cost of building and civil works


ADAMJEE CONSTRUCTION CO. LIMITED
Factory Building 900٬000
Ware House 600٬000
Processed Feed 600٬000
General Store 900٬000
Office Block 1000٬000
ALLIED ENGINEERING & SERVICES LIMITED
Residential Colony 800٬000
Bath rooms 100٬000
Total 4900٬000

• AFZAL MACHINERY STORES


37-Nishtar Road, Lahore, Pakistan, 54000

Items of local Machinery

Sr.# Items Qty Total Cost in Rs.


1 Hooper Hammer mill 1 325000
2 Molasses Mixer Tank 1 235000
3 Pipe Line 2 165000
Total 725000

• Amandus-Kahl GmbH, Dieselstrasse 5, D-21465 Reinbek, Germany.

Telephone: + 00 49 (40) 727 71-0

Fax: + 00 49 (40) 727 71-100

Department14of Commerce
Anmol Animal Feed Mill

E.mail address: info@amandus-kahl-group.de

Website: http://www.amandus-kahl-group.de/
• Acemo, 30 rue Albert de Mun BP 50, 56302 Pontivy Cedex, France.

Telephone: + 33 2 97 25 05 30

Fax: + 33 2 97 27 84 60

E.mail address: acemo@wanadoo.fr

Website: http://www.acemo.fr

Items of Foreign Machinery


Total Cost
Sr.# Item Qty in Rs.
1 Hopper Elevator 1 1000000
2 Grinding Machine 1 1450000
3 Packing Hopper 1 85000
4 Hopper Mixer 1 195000
5 Motor 4 265000
6 Sewing Machine
1 95000
7 Boiler 1 150000
8 Molasses Pump 1 35000
9 Fan Low pressure 5 250000
Total 3525000

Department15of Commerce
Anmol Animal Feed Mill

Implementation Schedule

Sr.No. Activities Month Year

1 Engineering studies and designing of civil works: 2010

Start January 2010

complete February 2010

3 Construction of building and civil works: 2010

Start February 2010

complete September 2010

4 Order for foreign machinery March 2010

5 Arrival of foreign machinery at sea port September 2010

6 Arrival of foreign machinery a site October 2010

7 Order for local machinery Jun 2010

8 Arrival of local machinery at site September 2010

9 Order for raw material November 2010

Department16of Commerce
Anmol Animal Feed Mill
10 Trial Runs: 2010

Start December 2010

complete January 2011

11 Start Commercial production January 2011

Strengths
• Investment in dairy and livestock sector is increasing day by day and quality feed
is a pre-requisite in profitable dairy and livestock farming.
• Feed Processing Unit establishing according to modern techniques with proper
utilization of locally available cheaper feedstuffs leads to success in dairy and livestock
farming hence for feed business too.
Weaknesses
• Limited availability of protein sources of standard quality due to low or limited
production, processing technology, variable composition and adulteration.
• Comparatively poor nutrient composition of home-grown feed ingredients due to
differences in varieties and use of improper soil fertilizers.
• Improper use of pesticides, the residues of which result in poor feed utilization.
• Lack of proper storage facility. Due to this fact various agricultural products when
produced under quite high moisture content, thus liable to be affected with insect
damage, auto-oxidation and fungal contamination.
• Lack of nutritional data of indigenous feed ingredients particularly for amino acids,
energy, vitamins, minerals and by pass protein value especially in high producing
cattle/buffalo.
• Improper storage, transfer, grading, feed milling and mixing of feed ingredients may
also affect the quality of feed.

Opportunities
• The annual growth rate in livestock population of Pakistan was 3.8 percent (Economic
Survey of Pakistan, 2007-08) due to which there is demand for compound feed. The
increased productivity would require better feed utilization and increase in overall feed
availability both from fodder crops and formulated compound feed.
• The agro industrial by products can be better utilized in formulated compound feed.
• In order to meet the rapidly increasing demand for the various kinds of livestock
products (Milk & meats), the better rations with improved feed formula are needed to
get more meat and milk, for the same feed supplies. By increasing livestock numbers,
rather than their average weight, the feed requirements are much larger.

Department17of Commerce
Anmol Animal Feed Mill
Threats
• Implementation of WTO. Open and competitive commodity pricing
• There is no feed ingredient quality control program as improper storage, transfer,
grading, feed milling and mixing of feed ingredients may also affect the quality of feed.
• The prices of different feedstuffs vary through out the year. Improper storage of raw
material can affect its nutritional value.
• There is limited availability of protein sources of standard quality due to low or static
production, processing technology, variable composition and adulteration.
• Lack of awareness among dairy and livestock farmers to use compound feed for the
high production of their animals is a constant threat for feed mill business as well.

Demand & Supply Conditions for last five years of Live stock Product:
Livestock plays an important role in the economy of the country and the livelihood of people.
Livestock accounts for 52.2 percent of agriculture value added and 10.9 percent of national
GDP. It is a net source of foreign exchange earnings, constituting more than 8.5 % of the total
exports. It is an important source of raw material particularly for leather, carpet and woolen
cloth industries. Livestock is raised by more than 8.5 million small and landless families in the
rural areas and is their main livelihood source. It is a form of social security for the poor, who
cash it at the time of need and it also serves as security against crop failure in barani (rain-fed)
areas. Dairy sector is an important component of Pakistan’s economy. The value of milk alone
exceeds the combined value of wheat, rice, maize and sugarcane in the country. Livestock
produces 34.064 million tons of milk, making Pakistan 4th largest producer of milk in the
world.

Product Demand Supply Gap % Surplus/Deficit


Motton 820 723 (97) (13)%
Beef 999 1087 88 8%
Milk 15044 28624 13580 90%

All amount in Rs.(ooo) but parenthesis indicate the %


Demand is increasing @ 6-7 % per annum; whereas the supply is increasing @ 3.2 %
per annum, creating a gap of around 3.8 % per annum.

Target Market:
The target markets of our project national market. Initially we will sell our product to target
region of Multan, Bahawalpur, Lodhran, Vihari, Mailsi, Bahawalnagar and Rahim yar khan.
Role of Live Stock in Economy:

In Punjab, the nutritional requirements are mainly met through fodder crops, shrubs,
grasses, and agro industrial wastes. Punjab produces about 45 million tonnes of fodder from

Department18of Commerce
Anmol Animal Feed Mill
2.03 million hectares of land with an average yield of 22 tonnes/ha (Younas and Yaqoob,
2005). The existing available feed resources can only fulfill the maintenance requirements of
animals.
Improving the quantity and quality of feeds could substantially enhance livestock production
from the existing genetic pool of animals. The gap between the requirement and availability of
nutrients could be minimized both through proper fodder research and extension policies in
terms of better quality seed, seed rate and improved agronomic practices. The National
Commission on Agriculture (NCA) 1988 suggested that "if all animals in milk receive full diet
which meets their daily appetite without changing the feed mix i.e. maintaining the present
poor nutritional requirement balance, this alone could increase milk yield by 100 per cent."

Role of Livestock in the Economy

Contribution in Agricultural GDP 47 %


Contribution in National GDP 11 %
Contribution in Exports 12 %
Population dependent on Livestock 60 %

Major machinery of Anmol Animal Feed Mill is brought from Germany and France. But we
have also acquired the local machinery which is easily available and economical in Pakistan.
Hooper Elevator and Grinding Machine, Motors,

Items of Foreign Machinery

Sr.# Name of Machinery Qty


1 Hopper Elevator 1
2 Grinding Machine 1
3 Packing Hopper 1
4 Hopper Mixer 1
5 Motor 125 HP 4
6 Sewing Machine 1
7 Boiler 1

Department19of Commerce
Anmol Animal Feed Mill
8 Molasses Pump 1
9 Fan Low pressure 5

Items of local Machinery

Sr.# Items Qty


1 Hooper Hammer 1
2 Molasses Mixer Tank 1
3 Pipe Line 2

Animal Food Process

Personnel Required for The Project


Administrative Staff
Numbers Basic Salary Total Salaries
Sr.No. Types of Staff Required Per Month for the Year
1 Chief Executive Officer 1 65000 780000
2 Production Manager 1 35000 420000
3 Account Officer 1 12000 144000
Total 1344000
Factory Staff
Numbers Basic Salary
Sr.No. Types of Staff Required Per Month
1 Labors 10 6500 780000
Department of Commerce
20
Anmol Animal Feed Mill
2 Mechanic 1 8000 96000
3 Guard 2 7000 168000
4 Driver 1 8000 96000
Total 1140000
Marketing Staff
Numbers Basic Salary
Sr.No. Types of Staff Required Per Month
1 Sales Executive 2 30000 720000
Total 720000
Total Cost of Human Recourse Management 3204000

Estimated Financial Statements


Anmol Animal Feed Mill
Income Statement

Year 1 Year 2 Year 3 Year 4 Year 5


166,212,00 188,373,60
Sales 146,966,400 0 177,292,800 0 199,454,400

130,776,52 149,783,47
Cost of Sales 122,217,540 5 139,954,078 1 160,312,424

35,435,47 38,590,12
Gross Profit 24,748,860 5 37,338,722 9 39,141,976

Operating Expense 2,300,750 2,517,313 2,755,599 3,017,554 3,305,553


32,918,16 35,572,57
Operating Profit 22,448,110 3 34,583,123 4 35,836,423

Financial Expense 809,050 640,517 468,250 297,850 170,400

Profit Before 32,277,64 35,274,72


taxation 21,639,060 5 34,114,873 5 35,666,023

Income tax 7,573,671 11,297,176 11,940,206 12,346,154 12,483,108


20,980,46 22,928,57
Net Profit after tax 14,065,389 9 22,174,668 1 23,182,915

Department21of Commerce
Anmol Animal Feed Mill
Ratio

Gross Profit 16.84% 21.32% 21.06% 20.49% 19.62%

Operating Profit 15.27% 19.80% 19.51% 18.88% 17.97%

Net Profit 9.57% 12.62% 12.51% 12.17% 11.62%

Current Ratio BALANCE SHEET OF ANMOL ANIMAL


2.11 2.28 FEED MILL
2.22 2.15 2.07
Return on Equity Year 0 Year 10.90 Year 21.35 Year 3 1.42 Year 4
1.47 Year 51.49
Return on Assets
Assets 1.13 1.87 2.23 2.64 3.13

Current assets
7,981,61 12,938,0 12,116,2 13,215,8 12,668,6
Cash 500,000 6 31 50 59 17
Account 14,696,6 16,621,2 17,729,2 18,837,3 19,945,4
Receivable 40 00 80 60 40
Raw material 11,403,50 12,218,0 13,032,5 13,847,1 14,661,6 15,394,7
Inventory 4 40 76 12 48 30
Finished goods
inventory 452,658 534,587 572,343 612,767 656,057
12,670,6 12,656,0 13,600,1 12,180,0 11,985,8
Stores and spares 98 72 63 77 52
Total 11,903,5 48,019,6 55,782,4 57,865,1 59,507,7 60,650,6
04 52 66 48 11 96
Fixed Assets
Land and Building 5,651,000 5,161,00 4,644,90 4,131,41 3,617,65 3,103,93
0 0 0 9 4
Plant and 4,250,000 3,825,00 3,442,50 3,017,50 2,592,50 2,167,50
Machinery 0 0 0 0 0
Furniture and 75,000 71,250 67,688 64,116 60,544 56,973
Fixture
Vehicles 850,000 765,000 688,500 611,150 533,885 456,612
Pre-operating 2,832,666 2,592,66 2,352,66 2,112,66 1,872,66 1,632,66
Expense 6 6 6 6 6
Total 13,658,6 12,414,9 11,196,2 9,936,84 8,677,25 7,417,68
66 16 53 1 4 4
Total Assets 25,562,1 60,434,5 66,978,7 67,801,9 68,184,9 68,068,3
70 67 20 89 65 80
Liabilities and Owner’s equity
Current
liabilities
Account Payable 22,807,0 24,436,0 26,065,1 27,694,2 29,323,2
08 80 52 24 96
Tax payable
Long term loan 10,000,00 8,000,00 6,000,00 4,000,00 2,000,00 0
0 0 0 0 0
Equity
Capital 15,562,17 15,562,1 15,562,1 15,562,1 15,562,1 15,562,1
0 70 70 70 70 70
Net Profit 14,065,3 20,980,4 22,174,6 22,928,5 23,182,9

Total
Department
25,562,1
of Commerce
89 22
60,434,5 66,978,7
69 68
67,801,9
71
68,184,9
15
68,068,3
70 67 19 89 65 81
Anmol Animal Feed Mill

Cash Flow Statement

Department23of Commerce
Anmol Animal Feed Mill

Cash Flow Statement


Sources Year 0 Year 1 Year 2 Year 4 Year 4 Year 5
22,448,11 53,563,44 61,153,71 64,562,28 66,772,85
Operating Profit 0 3 5 0 0

Depreciation 1,000,000 991,500 992,350 992,265 992,274

Depreciation of fixture 3,750 3,563 3,572 3,571 3,571

Amortization 240,000 240,000 240,000 240,000 240,000


Increase in current 21,386,84
liabilities 1,420,166 2 1,629,072 1,629,072 1,629,072 1,629,072
10,000,00
long term debt 0
16,982,33
Owner’s equity 6
28,402,5 45,078,7 56,427,5 64,018,7 67,427,1 69,637,7
Total 01 02 77 09 88 67

Application
11,403,50 12,218,04 13,032,57 13,847,11 14,661,64 15,394,73
Raw material inventory 4 0 6 2 8 0

Finished goods inventory 226,329 242,179 259,174 277,377 296,875

Financing expense 809,050 640,517 468,250 297,850 170,400


18,523,02 21,239,91 22,492,55 23,310,85
Income tax 7,573,671 4 3 1 8
13,658,66
Capital Expenditure 6

payment of loan 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000


Increase in current 17,104,18
Assets 4 5,121,226 2,670,524 2,302,626 2,160,510
25,062,1 39,931,2 39,559,5 40,484,9 42,032,0 43,333,3
Total 70 74 22 73 51 73
16,868,05 23,533,73 25,395,13 26,304,39
surplus/deficit 3,340,332 5,147,429 5 6 8 4
16,868,05 23,533,73 25,395,13
cash carry forward 3,340,332 5,147,429 5 6 8
22,015,48 40,401,79 48,928,87 51,699,53
Total cash 3,340,332 8,487,760 4 1 3 2

Cost of Sales Schedule

Department24of Commerce
Anmol Animal Feed Mill

Year 1 Year 2 Year 3 Year 4 Year 5

Cost of Sales

Raw material 114035040 1.22E+08 1.31E+08 140258112.2 150276548.8

Packing cost 1848000 1940400 2037420 2139291 2246255.55

Wages 1260000 1386000 1524600 1677060 1844766

Electricity 4032000 4233600 4445280 4667544 4900921.2

Repair and maintenance 42500 44625 46856.25 49199.0625 51659.01563

Depreciation 1000000 991500 992350 992265 992273.5

Total 122217540 1.3E+08 1.4E+08 149783471 160312424

Operating Cost Schedule

Year 1 Year 2 Year 3 Year 4 Year 5

Operating Cost
227040
Administrative expense 2064000 0 2497440 2747184 3021902.4
23094.6187
Electricity 19000 19950 20947.5 21994.875 5
3571.87 3571.4062 3571.42968
Depreciation of furniture 3750 3562.5 5 5 8

Telephone 36000 36000 36000 36000 36000

Traveling and conveyance 60000 60000 60000 60000 60000

Printing and Stationary 24000 24000 24000 24000 24000


Market and Promotional
charges 84000 92400 101640 111804 122984.4

Legal and Professional charges 10000 11000 12000 13000 14000

Amortization 240000 240000 240000 240000 240000


251731 275559 3017554. 3305552.8
Total 2300750 3 9 3 5

Department25of Commerce
Anmol Animal Feed Mill
14 KEY ASSUMPTION

Department26of Commerce
Anmol Animal Feed Mill
OPERATING ASSUMPTIONS
Working days in a year 300
Shifts Operational 1
Hours per shift 8
Initial year Capacity utilization 70%
Production Capacity (Tons per Annum) 5
Annual Production Capacity (Tons) 12,000
Capacity Utilization growth rate 5%
Maximum Capacity utilization 95%

REVENUE ASSUMPTIONS
Sales Price per 40 kg (Animal Feed Mill) 800
Sales Price growth rate 5%

COST OF SALES ASSUMPTIONS


Raw Material Cost growth rate 5%
Packing Cost (Rs./Bag) 11
Electricity Growth rate 5%
Salaries Growth rate 10%
Repair and Maintenance (as percentage of machinery) 1%
Repair and Maintenance Growth Rate 5%
Depreciation on Plant and Machinery 10%
Depreciation on Land and Building 5%
Depreciation on Furniture and Fixture 5%
Depreciation on Motor Vehicle (Straight Line method) 10%

Department27of Commerce
Anmol Animal Feed Mill

Operating Assumptions
Telephone and Telex (per month) Rs. 3,000 3000
Administrative Expense growth rate 10% 10%
Printing and Stationery (per month) Rs. 2,000 200
Legal & professional charges (annual) Rs. 10,000 1000
Traveling & conveyance (per month) Rs. 5,000 5000
Marketing and Promotional Expenditures Rs. 5,000 5000
Amortization of pre-operating expenses yrs. 5 5
Tax rate 25% 25%

During the visit of Okara Research center for Livestock (Highlights)

Observing the Raw Material

Department28of Commerce
Anmol Animal Feed Mill

Observing the Machinery at site with workers

Asking about Raw Material

Department29of Commerce
Anmol Animal Feed Mill

Observing the Working of Hooper Elevator

Asking about the packing of Rashon Wanda

Department30of Commerce
Anmol Animal Feed Mill

Observing the working of Hooper Mixture

Asking about the Packing and Weight per Bag

Department31of Commerce
Anmol Animal Feed Mill

Asking bout the Molasses Ingredients

The Researchers with Director and Head of Department

Department32of Commerce
Anmol Animal Feed Mill

Working of Hooper Mixture with Hooper Elevator

Asking about the consumption of Utilities

Department33of Commerce
Anmol Animal Feed Mill

Department34of Commerce