Financial Projections

Assumption Sheet: Sowing and Picking Period of Selected Off Season Vegetables

Vegetable

Sowing Period

Picking Period

Tomato

Late August (Nursery)

November ( Transplantation)

February Mid June

Cucumber

End of October to End of Mid-January Mid June

December (direst seeding)

Capsicum

October (Nursery)
November ((transplantation)

February - May

Source: SMEDA, Google, Wikipedia

Ratio Analysis of Projected Financial Statement

No

Ratio

Formula

Current Ratio

Current Assets / Current

Liabilities

1;0

1;0

8.89(times)

Net Profit Margin

Net profit / Sales

-0.052

0.033

0.1028

Return on Equity

Net income / Total Equity

-0.08

0.064

0.242

Return on Assets

Net income / Total Assets

-0.09

0.066

0.195

Years

Today

2014

2015

2016

Net cash flow

-1100000

543100

664317

NPV, IRR, DIS P.B.P

NPV

431864.04

DIS P.B.P

2.69

IRR

32.5%

Breakeven Analysis
Write formula here
px = vx + FC + Profit
Where,
p is the price per unit,
x is the number of units,
v is variable cost per unit and
FC is total fixed cost.

Vegetable

Breakeven

Tomato

36351 Kg

Cucumber

38687 Kg

Capsicums

9560 Kg

976795.13

PROJECTED INCOME STATEMENT

FOR THE YEAR ENDED
2014 - 2016
2014

2015

2016

Sales

1800800

2142952

2550112.88

C.G.S (less)

627000

707000

797369

Gross profit

1173800

1435952

1752743.88

Depreciation expense*

50450

50450

50450

Salaries expense

432000

492480

561427.2

Legal expenses

10000

Utility bills

18000

20520

23392.8

Land Rent

275000

275000

275000

Transport Cost

240000

273600

311904

Packing Cost

188700

198135

208041.75

Advertisement

50000

55000

60500

Total expenses

1264150

1365185

1490715.75

Net income before tax

-90350
No
Tax
Agriculture**

70767

262082.13

70767

262028.13

Operating expenses:

Net income
Correct

-90350

On

*Depreciation is deducted from all long term assets @ 10% because of nature of our assets
** No tax is applicable on agriculture still yet

PROJECTED CASH FLOWS STATEMENT

FOR THE YEAR ENDED
2014-2016
2014

2015

2016

Cash In Hand
Revenue

583000

543100

664317

1173800

1435952

1752743.88

Total Cash Inflow for Operating

1756800

1979052

2417060.88

492480

561427.2

55000

60500

50450

50450

273600

311904

198135

208041.75

275000

275000

543100

20520
664317

23392.8
976795.13

Net Cash Flow

492650

613867

926345.13

Plus: Deprecation

50450

50450

50450

Net Cash Flow after Operating Activity

543100

664317

976795.13

Expenses
Payroll (Admin)
Legal Expense
Advertising
Deprecation
Transport Cost
Packing Cost
Land Rent
Utility Bills

432000
10000
50000
50450
240000
188700
275000
18000

Total Cash Outflow for Operating

Correct

PROJECTED BALANCE SHEET

FOR THE YEAR ENDED
2012-2014
Assets:
2014

2015

2016

ASSETS

RS

RS

RS

current assets:
cash in hand
Spare Parts Inventory

543100
12500

664317
14250

976795.1
16245

long term assets not long

term these are Fixed
assets
furniture
Building and Civil Works
Ridger
Spray Machine & Farm Tools
Soil Leveler
Peter Engine
Rotavator
Steel
Total Fixed Assets
Less: accumulated
depreciation

TOTAL ASSETS

32000
200000
12000
23000
20000
25000
60000
132500
504500
50450

32000
200000
12000
23000
20000
25000
60000
132500
504500
454050

1009650

100900

32000
200000
12000
23000
20000
25000
60000
132500
504500
403600

1082167

151350

353150

1346190

Liabilities:
LIABILITY AND
OWNER EQUITY
owner's equity
Abdul Wahab
Nabeel Maqsood
Asim Ali
Ali Hamid
Mazhar
Investor
T. equity
Retained earning
Less: Defferd cost

RS
150000
150000
150000
150000
100000
400000

150000
150000
150000
150000
100000
400000

RS
150000
150000
150000
150000
100000
400000

1100000

1100000
70767

1100000
262028.1

90350

90350

90350

1750

74512

1082167

1346190

current liabilities
Dividend payable

TOTAL EQUITY AND

LIABILITIES

RS

1009650

First year ki retained earnings nai likhi v.. or agar nai likhni
tou ye likho assumption ki heading daal k ke retained earnings nai kien
q k dividends dae diye hain, or deferred cost nai h taxes hain

Key Assumption:
Table 01: Crop Assumptions
Crop Assumption

Avg. Seed Requirement in

Unit/ Acre

Crop Yield/
Acre in Kgs

15000

Avg. Seed Price/

Acre
(Bag)
24000

Cucumber
Tomato

15000

28500

20000

Capsicum

15000

22500

12000

28000

Source: SMEDA, Mian Shadi Agricultural Material Co

Plastic Cost per Acre
Description

Quantity

Price per Unit

Plastic Cost kg/Acre

Plastic Mulch
Total Cost kg/Acre

135
74
-

140
150
-

Total Cost

18900
11100
30000
Source: Local Market

Table 02: Economy Related Assumptions

Description
Increasing Rate
Water Price Growth Rate
10%
Electricity Growth Rate
14%
Wage Growth Rate
14%
Inflation Rate
14%
Fuel Growth Rate
12%
Seed Price Growth Rate
10%
Pesticide
14%
Fertilizer
14%
Packing Cost Growth Rate
5%
Plastic Growth Rate
13%
Industry Growth Rate
7.46%
Source: Economic Survey of Pakistan 2011, Google, Market

Table 03: Expenses Assumptions

Description
Increasing Rate
Water Cost Per Irrigation / Acre
200
Irrigation (No. Of Months)
5
No. Of Times land Irrigated / Month
2
Transport Cost / Round
8000
Packing Cost / Kg in PRs
1.50
Pesticide Cost / Acre / Year
15000
Fertilizer Cost per Acre / Year
15000
Source: SMEDA, Mian Shadi Agriculture Material Co

Last 4 tables are correct