Executive Summary:

Title: Project appraisal on the slaughtering house & frozen meat.

This project appraisal is in the respond to the assignment assigned by Mr. Javaid Iqbal, to check
our feasibility study of the slaughtering house project.
Process of review
To complete the assignment we visit the related association and personally visit a
slaughtering house & frozen meat. Collect the data from related parties and possible sources. The
summary of the project appraisal is as follow:

Summary:
Name of industry: TAJ slaughtering house and frozen meat
Location of project: Main industrial zone, BAHAWALPUR.
Address: Plot #156, main link road. Near over bridge multan road, BAHAWALPUR

The project appraisal under consideration has a product range consisting the production of frozen
meat of Goat & Sheep. The installed capacity of the project is 5132166 in a year. The estimated
capacity of the project in the first year (2011) 70% in 2012 & 80% in the 2013 90.
The estimated cost of the project in Rs. Is as follow:

Fixed cost 46150743

+Initial Capital 13849257
Total cost 60000000

The means of finance for the above said cost of project is 60% debt & 40% equity. The name of
lender is national investment bank (NIBP), that the required loan @ per annum against the
securities pledged & the personal assets of the partners. The name of sponsors is:

Mr.Shoaib Nishter
Mr. Hafiz Naveed
Mr. M.Ismail

The civil work & construction of the project is done by Abbass Associates & constructors
bahawal pur The machinery required for the project is conventional machinery that is supplied
by “Top slaughter Machinery Supplier lahore”.
 The implementation schedule of the project is as under:
The financial analysis shows the following results:
IRR is 36% of the project. The above result shows the possibility of the project & proves it’s as a
profitable project, which can generate for the stakeholders and owners. The future chances of
expansion in demand are strong that will make the industry more profitable in future.
All presetting of the project confirms that we can implement the project this year and can start
commercial production on 1st jan, 2011. The details of the project appraisal are discussed in
details in next pages. In line with our project appraisal team, we have provided all information’s
and will present further details related to the project on the final presentation.
Thanks
Yours Sincerely,

Mr.Shoaib Nishter
Mr. Hafiz Naveed
Mr. M.Ismail

INTRODUCTION

NAME: Taj Slaughtering House

STATUS: Partnership Business

PRODUCTION DATE: 30th JUNE 2010

PURPOSE OF COMPANY:
“To provide the quality products at a competitive price,
and thus earning revenues for the owners”

MARKET ANALYSIS

There is a huge shortage of slaughter animals for meat supply. The animal growth
cycle needs a certain period to fill the gap made by slaughtered animals but rapid
increase in daily use, change in consumption patterns, use of more meat in food table
and economic up lift has increased the demand by many folds resulting in
slaughtering of premature animals, poor carcass quality and quantity wise and
increase in price. If this practice continued, there would be a huge gap between
supply and demand, forcing the import of meat at large scale. At present small
ruminant are mainly coming from the range/rain fed areas where feed resources are
not sufficient to bear the animal production requirements. So, most of the cases
range areas are either over crowded or with out grazing systems, resulting in poor
nutrients supply to animals and damage to rangelands themselves. The disappearance
of desirable fodder species and propagation of unwanted plants make this situation
worsened for future also.
The 3 slaughterhouses present in Lahore (Kot Kumboh, Shahdrah and Baghbanpura)
are meeting the only 75% of daily requirements and rest of meat is slaughtered at
different areas illegally. Now it is need of time that if public sector can not meet the
changing trade scenario and export standards (as evident from many reports), the
private sector should be developed for this purpose. The loans to set modern abattoir
with hygienic production facilities should be granted on easy terms. Furthermore,
the Sanitary and phytosanitary (SPS, 1994) Agreement also demands under the
Uruguay Agreement, to define rules for setting national standards and regulations
relating to sanitary and phytosanitary measures to protect human or animal health
from specific risks, including risks arising from animal diseases and food safety.
Under this act more stress was given on animal health than food safety.

Export meat

The export of meat from Pakistan is relatively a new segment of country’s trade, as
the real commercial level export started in not before than. Thus, the export of meat
and meat preparation is not so high; but the export growth rate is quite encouraging.
Pakistan owns a large inventory of livestock, which determines a large size of meat
exports in future. So, meat export is bound to be a good contributor to Pakistan’s
foreign exchange in the years ahead.

Despite an increase in meat production, the prices have moved upward abnormally.
The recent increase in meat prices is attributed to the export of live animals or meat
to the Middle East and Afghanistan. The country, though rich in livestock, rarely got
a chance to export meat or meat products to earn foreign exchange. It was offered an
opportunity when various Middle East states stopped importing meat from European
countries due to the incidence of the mad cow disease. Meat export from Lahore
started in the beginning of the year 2000 when carcasses of goats and large animals
were airlifted. The meat was processed under a special arrangement between the
exporters and the Metropolitan Corporation of Lahore, which runs four abattoirs in
the city.

Meat Markets:
Currently, meat sector in Pakistan is working on an informal basis from animal
raising to meat selling. Animal traders purchase animals from the rural areas and sell
them to the animal markets in the urban areas. Butchers purchase these animals from
animal markets and slaughter them in the slaughterhouses. Butchers act as meat
traders and dominate the meat market both in rural and urban areas. The animals sold
in these markets are generally diseased and culled animals. Butchers/traders prefer to
buy these cheap animals. Pakistan is one of the cheapest beef producers in the world
as the live weight value per kilogram is lowest in the world because of the cheap raw
materials available.

OpportuiityRationale

Pakistan is situated along both sides of the historic Indus River, following its course
from the mountain valleys of the Himalayas down to the Arabian Sea. It shares
borders with India, China, Afghanistan and Iran. Its 796,095 square kilometer
territory includes a wide variety of landscapes, from arid deserts to lush green
valleys to stark mountain peaks. The estimated human population is 153. 96 million
with annual growth rate of 2.9 %. Of the total population, 65.9 % live in rural areas.
Punjab is the most populated of the 4 provinces, having 56% of the country’s
population while Sindh (23%), NWFP (16%) and Balochistan (5%) provinces share
the rest. Agriculture is the mainstay of Pakistan’s economy. Livestock sector
contributes almost 50 percent to the value addition in the agriculture sector, and
almost 11 % to Pakistan’s GDP, which is higher than the contribution made by the
crop sector (47.4% in agriculture and 10.3 % in GDP). The role of livestock sector in
the rural economy of Pakistan is very critical.

Per Capita availability of meat:

Per capita availability of meat is 12 kg, most of which is from buffalo and cattle. It
may, however, be mentioned that population statistics and statistics on the
availability of products from various sources differ drastically. To meat the domestic
demand of meat, the rate of growth must be at least 5-7 % per annum.
The demand of livestock food products is growing fast because Pakistan's human
population is increasing at the rate of 2.9 per cent annually. If population pressure
continues to grow and livestock production stays at the same level, then food deficit
may become larger. According to one recent survey, in coming years, milk, red meat
and poultry meat deficit will be 9.72, 0.17 and 0.14 million tonnes if our livestock
production stays at the same level.
Therefore there is need of establishment of slaughterhouse facilities of a sufficiently
high standard but still simple would improve the situation. Therefore, this prefeasibility
study has been made of a medium size slaughterhouse equipped with
medium level semi mechanized technology. By providing value added services, the
slaughterhouse can utilize the abundant and unexplored resources of Pakistan.

THE CURRENT SLAUGHTERING PRACTICES:

Public Sector:
For carrying out study of present slaughtering practices Lahore market has been
selected. In Lahore, there are four slaughterhouses owned and managed by
Municipal Corporation Lahore (MCL) at Kot Kamboh, Baghbanpura and Shahdara
with Slaughtering capacity for 6,700 small and 610 large animals. This capacity is

sufficient for meeting only 75% meat requirement of the city. The remaining 25% is
being supplied from outside the city, and by illegal slaughtering.

Indeed the present premises are fairly old structures, had been built several years
ago, and at when a time municipal engineering and public health requirements were
less stringent and different from those prevailing now. These slaughterhouses handle
the bulk of public slaughters, and as such, they are not slaughterhouse but can be
referred to as slaughter slabs merely a place for slaughter
arrangement of hygiene and sanitation. These premises merely make facilities
available for use by butchers and traders (not licensed) for the slaughter of livestock
at fee of Rs. 10 per small animal and Rs.20 per large animal.
No storage facility and sufficient quality control measures are available there. Most
of the times, Meat gets rotten especially in summer season. This problem is
intensified while the meat is sold through the butcher’s shops to final customers. All
the meat is not sold to customers in daytime, and not all the unsold meat is frozen to
keep it in hygienic condition.
The primitive conventional fashion slaughtering results in wastage and damage to
by-products. There is also lack of essential allied facilities. The prevailing conditions
are discouraging for the export of meat and meat by-products.

Private Sector Modern Abattoirs:

There is only one modern abattoir working in private sector in the whole province of
Punjab. It is semi mechanized and has minimum required facilities for export of
meat in Middle East countries. It is located near Mureedka on Mureedka
Shiekhupura road currently this slaughterhouse can process 500 small animals per
day. Another slaughterhouse is situated at Kot -Lakhpat, which has only a chiller and
no slaughtering and de-skinning facilities. These slaughterhouses have insufficient
capacity to fulfill the local and international demand for meat.

MARKEETING:

The proposed slaughterhouse will identify and develop such services and products
that will help to cater the unfulfilled market for quality meat and its by-products in
an effective and efficient manner on the following grounds:
The slaughterhouse, duly equipped with modern facilities and hygienic standards,
can carve a niche in the existing market through properly defined segments and
create a competitive strength over municipality-owned and managed
slaughterhouses. This unique marketing position can be attained through formulation
an adequate marketing mix. The slaughterhouse can achieve differential competitive
advantage by.
• Physical differentiation through distinguishing own product in quality and appearance.
• Psychological differentiation through labeling, stamping, packing
advertisement,salesmanship and sales promotion.
• Differentiation through its distinctive environment of pleasant surroundings,personal
attention and improved services.
• Differentiation through physical distribution capabilities by making meat readily
available at customers’ doorstep.
• Differentiation through pricing and terms of sales and services.

• And direct sale in international markets preferably UK(Large Animal)

• Slaughtering services to local butchers and traders (Slaughtering and chilling services to
exporters, to fill the gap of capacity.

The financial model of this business plan depicts the picture of product mix of the
above options. The prices of services have been taken at current/prevailing market
and there is a margin to decrease prices of services offered.
The decision of selecting the distribution channel will be based on the identification
of target market.
For local market, the slaughterhouse can target the needs of health conscious people
through departmental stores, chain stores, other retail outlets, but in the initial stage,
opening of own retail outlet is not recommended, because it will require investment
and specialized skills of retailing business. It is planned to distribute 30 refrigerators
to major departmental stores of Lahore filled with product free of cost, and a margin
of 5% will be offered to shop keepers on selling each product
Foreign contracts can be obtained with the assistance of Export Promotion Bureau
(EPB). The management of EPB is already working on it to facilitate the export of
meat. The slaughterhouse can also serve the existing meat exporters.

TEHNICAL ANALYSIS

The capacity of the proposed slaughterhouse is 900 small (goats) and

300 large
animals per day. The capacity utilization varies depending on the staff
efficiency and availability of animals.

Land and Building

Slaughter house will be built on the area of 5 Acres / 40 Kanals . The
details of land utilization are given in below.
 Land and its development

Cost of Land
Size Acre Cost per acre Total
200,00 1,000,00
Land 5 0 0
60,00
Cost of Registration 6% 0
20,00
Cost of Transfer 2% 0
450,00
Bounday Wall and Main Gate 0
50,00
Legal Charges 0
10,00
Brokerage fee 1.00% 0
1,590,00
Total 0

Building and Civil Works

Area
Factory Building Sq ft Rate per Sq ft Cost
2,24 30 672,00
Machineries building 0 0 0
1,12 30 336,00
Slaughters room 0 0 0
48 30 144,00
Freezers Room 0 0 0
96 30 288,00
Store 0 0 0
1,45 30 436,80
Packing room 6 0 0
40 30 120,00
Meat Room 0 0 0
14 30 43,20
Open space 4 0 0
2,40 30 720,00
Galleries 0 0 0
14 30 43,20
Office 4 0 0
2,803,20
Total 0
Air Conditioning and electricity 4,000,00
(internal) 0
1,500,00
Furnishing and water supply network 0
5,500,00
Total 0
8,303,20
Total 0
OPEEAATIONAL PROCESSES
Lairage
The animal should be given rest for at least 12-18 hours before slaughtering and only
water should be given to it in this process.
Slaughtering
Slaughters are done manually. The animal being cast down is laid on its back, while
the neck vessels and passages (esophagus and trachea) are severed by a single slash
of a sharp knife. Bleeding proceeds to completion.
2
Req. Area per small animal is 15 sq.ft, per large animal is 50 sq.
Slaughtered animals must be positioned first for bleeding. A vertical or hanging
position is achieved by shackling below the hock of one hind leg and hoisting the
animal (head down) to a convenient height. Alternatively, the animal can be placed
horizontally on a concrete slab or a sturdy plastic pallet for bleeding.
Hoist bleeding is more hygienic and is recommended. It also facilitates collection of
blood for further use.
Skiinning
It is removing the skin of animals. Skinning will be done in hanging position with
facilities/equipment of railing, the individual carcasses one after another.
Eviscerating
The next step is to cut open the animal body to dislodge the contents and produce the
carcass. It is important that the carcass remains or is placed in the hanging position
on railing.
Post-mortem nspection
Inspection will be carried out by professional veterinarians and public health
inspectors are to be employed, as it is required by the MCL. (Provision of their
salaries has been provided in the financial analysis). Their duty is to examine the
slaughter products for evidence of disease and abnormality and reject/eliminate them
from the public meat supply.
Rigor Mortisprocess
Before chilling, for at least 2-4 hours, air is provided by fans to carcasses in a
separate room
 PERSONNEL ANALYSIS

It is essential to provide adequately trained staff to carryout the above processes and
improve slaughter hygiene and meat quality, reduce raw material losses, increase
utilization of by-products, and thereby increase profitability. To meet this objective,
proper training is required for the meat workers who are to operate these facilities.
The type of personnel needed and their cost is given in financial analysis.

PERSONNEL REQUIRED FOR THE PROJECT

Year1
a b axbx12
Basic Total
S.No Type of Staff Number Salary Salaries
Per Per
Required Person year
Per (in
Month Rurees)
A. Factory Staff (Including
Managerial, Technical, Skilled
and un-skilled ).
1 veternery doctor 1 25000 300000
2 neutritionist 1 12000 144000
3 Shift Incharge 3 10000 360000
4 Machine Operator 3 9000 324000
5 Security Guard 3 7000 252000
6 Driver 2 8000 192000
7 Sweeper 1 6000 72000
14 Total A = 1644000
Add:Fringe
Benefits
(@50% of
Total A. 822000

Total Salary
of Factory
Staff 2466000

B. Administrative and General Staff

 1 Accountant 1 22000 264000
2 admin.oficer 2 10000 240000
3 technician 1 6000 72000
4 Receptionist 1 8000 96000
5 Total B= 672000
Add:Fringe Benefits
(@50% of Total B. 336000

Total Salary of Admin. &

Gen. Staff 1008000

C. Sales Staff
1 Sales Representative 2 10000 240000
2 Advertising 100000
3 Helper 2 6000 144000
4 Total C.= 484000
Add:Fringe Benefits
(@50% of Total C. 242000

Total Salary of Sales

Staff. 726000

Equipment
The standard installation and equipment required in modern slaughterhouse are those
necessary to effect a rapid and hygienic conversion of livestock into meat.

70,00
hooks 0
80,00
spreaders 0
60,00
steel 0
70,00
sticking knife 0
50,00
skinning knife 0
60,00
meat saw 0
90,00
meat chop 0
480,00
total 0

Machines
Machinary and Equipment
Item Cost Total Cost
3,400,00 20,400,00
Machinary and Equipment 6 0 0
80,00 480,00
slaughtering machine 6 0 0
100,00 200,00
Pressure Tank and Other Motor 2 0 0
1,800,00 3,600,00
Electric Generator 2 0 0
1 2,00 24,00
packing machine 2 0 0
150,00
cooling machine 0
60,00 60,00
Water Turbine 1 0 0
800,00 800,00
AC Ducting 1 0 0
25,714,00
Total 0

Relatively fewer tools

 are required for the slaughter and some can be made by local
metal workshops or blacksmiths. The most commonly used slaughtering tools are

REGULATIONS
Registration
Permission is required from Local Municipal Authority before starting construction
of an abattoir.
Application for permission is to be submitted to:
Secretary Livestock Department
Local municipal authority
No fee is required for submission of application.
Public veterinarian/doctor will be required for inspection of meat who will work on
 behalf of MCL.
1 Taxation
There is no General Sales Tax on abattoir services.
Income tax will be levied as per status i.e. individual, partnership, AOP, or company.
Laws
The regulatory laws governing the slaughtering of animals are as under
The Punjab Animal Slaughtering Control Act, 1963
(West Pakistan Animals Slaughter Control Act, 1963)
Photocopies of above laws are being annexed for ready reference.

FINANCIAL ANALYSIS

Cost of project
Finanacial Plan
Cost of the Project Local Foreign Total
Rs. Rs. Rs.
1,590,00 1,590,00
Land and its Devolpment 0 0
8,303,20 8,303,20
Building and Civil Work 0 0
25,714,00 25,714,00
Machinary and Equipment 0 0
Engineering and Technical 100,00 100,00
Fee 0 0
69,00 69,00
Furniture and Fixture 0 0
2,780,00 2,780,00
Vehicles 0 0
1,140,00 1,140,00
Preproduction Expense 0 0
32,00 32,00
Office Equipment 0 0
400,00 400,00
Contingencies 0 0
182,54 182,54
Others 3 3
5,840,00 5,840,00
Intrest During Construction 0 0
46,150,74 46,150,74
Total Fixed Cost 3 3
74,052,65 74,052,65
Initial Working Capital 2 2
60,000,00 60,000,00
Total Cost of the Project 0 0

Net Fixed Assets 45,010,743

 CALCULATION OF INTEREST

Nmae of Bank NIBP

36,000,00
Amount of loan 0
per
Rate Of Intrest 16% Annuam
Period Of Loan 5 Years 360
Repayment of Intrest Quartely Instalment
Repayment of Instalment Half Yearly
Date of Disbursement of Loan 3/31/2010
Completion of the Project 31/12/2010
Date of Commercial Production 31/3/2011
Date of Repayment of principle 30/6/2011 6 Instalment
No of Principle Amount Total Outstanding
Due Dates Days Instalment of Intrest Instalment Principle
36,000,00
3/31/2010 0 0 0 - 0
9 1,456,00 1,456,00 36,000,00
6/30/2010 1 0 0 0 0
9 1,472,00 1,472,00 36,000,00
9/30/2010 2 0 0 0 0
9 1,472,00 1,472,00 36,000,00
12/31/2010 2 0 0 0 0
9 1,440,00 1,440,00 36,000,00
3/31/2011 0 0 0 0 0
9 3,600,00 1,456,00 5,056,00 32,400,00
6/30/2011 1 0 0 0 0
9 1,324,80 1,324,80 32,400,00
9/30/2011 2 0 0 0
9 3,600,00 1,324,80 4,924,80 28,800,00
12/31/2011 2 0 0 0 0
9 1,164,80 1,164,80 28,800,00
3/31/2012 1 0 0 0
9 3,600,00 1,164,80 4,764,80 25,200,00
6/30/2012 1 0 0 0 0
9 1,030,40 1,030,40 25,200,00
9/30/2012 2 0 0 0
9 3,600,00 1,030,40 4,630,40 21,600,00
12/31/2012 2 0 0 0 0
9 864,00 864,00 21,600,00
3/31/2013 0 0 0 0
9 3,600,00 873,60 4,473,60 18,000,00
6/30/2013 1 0 0 0 0
9/30/2013 9 736,00 736,00 18,000,00
 2 0 0 0
9 3,600,00 736,00 4,336,00 14,400,00
12/31/2013 2 0 0 0 0
9 576,00 576,00 14,400,00
3/31/2014 0 0 0 0
9 3,600,00 582,40 4,182,40 10,800,00
6/30/2014 1 0 0 0 0
9 441,60 441,60 10,800,00
9/30/2014 2 0 0 0
9 3,600,00 441,60 4,041,60 7,200,00
12/31/2014 2 0 0 0 0
9 288,00 288,00 7,200,00
3/31/2015 0 0 0 0
9 3,600,00 291,20 3,891,20 3,600,00
6/30/2015 1 0 0 0 0
9 147,20 147,20 3,600,00
9/30/2015 2 0 0 0
9 3,600,00 147,20 3,747,20
12/31/2015 2 0 0 0
36,000,00 20,460,80 56,460,80
Total 0 0 0

Intrest during Construction

5,840,00
from 3/31/2010 to 3/31/2011 0

2011 2012 2013 2014 2015 2016

1,456,00 4,979,20 3,798,40 2,630,40 1,462,40 294,40
Interest 0 0 0 0 0 0
3,600,00 7,200,00 7,200,00 7,200,00 7,200,00 3,600,00
Instalments 0 0 0 0 0 0

ASSUMPTIONS
land in acr 5
cost of registeration 6.00%
cost of land per acr 200000
legal expense 50000
Rate per Square ft building Rs 300
depriciation rate 10%
tax anually 40%
incresse in sale anuualy 10%
increse in direct cost & expenses 110%
Debt portion 60%
Equity portion 40%
Distributable profit to all partners 90%
retained earning 10.0%
Animal slaughtered 15840
months in a year 12
days in a month 30
price of per kg meat 200
price of animal 3000
estimated load shading hours 10
liter per
fuel utiliazation hr 20
daily fuel used liter 200
monthly fuel consumption liter 6000
yearly fuelconsumption 72000
fuel per liter 65

INCOME STATEMENTS
 Income Statement
For the Year ended 2011 2012 2013
operating efficiency
assumed Rs. Rs. Rs.
668,926,5 860,048,37 1,075,060,4
Sales 16 8 73
Cost of good Sold:.
179,625,6 205,286,40 230,947,2
Raw material consumed 00 0 00
2,466,0 2,712,60 2,983,8
Labour 00 0 60
8,696,0 9,565,60 10,522,1
Manufacturing expense 00 0 60
3,552,6 3,552,66 3,552,6
Depreciation 60 0 60
194,340,2 221,117,26 248,005,8
Cost of good Sold 60 0 80
474,586,2 638,931,11 827,054,5
Gross Profit 56 8 93
Operating Expenses
1,008,0 1,108,80 1,219,6
General and Admin. Expenses 00 0 80
726,00 798,60 878,46
Selling Expenses 0 0 0
1,734,0 1,907,40 2,098,1
Total Operating Expenses 00 0 40
472,852,2 637,023,71 824,956,4
Operating Profit 56 8 53
Non-Operating Expenses
1,456,0 4,979,20 3,798,4
Financial Exp. 00 0 00
228,00 228,00 228,00
Amortization of preproduction exp. 0 0 0
9,457,0 12,740,47 16,499,1
Workers Welfare Fund (2%) 45 4 29
11,141,0 17,947,67 20,525,5
Total Non-operating Exp. 45 4 29
461,711,2 619,076,04 804,430,9
Profit before Tax 11 4 24
184,684,4 247,630,41 321,772,3
Tax 85 8 70
277,026,7 371,445,62 482,658,5
Net Profit after Tax 27 6 54

Raw Material
 a b axbx12
Monthly cost per Total (at
Item Required Item 100%) (at 70%) (at 80%) (at 90%)
Eggs. 7128 3000 256608000 179625600 205286400 230947200

Manufacturing Expense (at 70%) (at 80%) (at 90%)

S.No. Item Cost
1 Electricity 3500000 3850000 4235000
2 Generator 4680000 5148000 5662800
3 Maintance Exp. 300000 330000 363000
4 Carriage in 8000 96000 105600 116160
5 Carriage out 10000 120000 132000 145200
Total 8696000 9565600 10522160

Depreciation Expense

S.No. Item Total Cost Rate of Dep. Year1 Year2 Year3

8,303,20 415,16 415,16
1 Building 0 5% 0 0 415,160
25,714,00 2,571,40 2,571,40
2 Machinary 0 10% 0 0 2,571,400
2,780,00 556,00 556,00
3 Vehicle 0 20% 0 0 556,000
69,00 6,90 6,90
4 Furniture 0 10% 0 0 6,900
Office 32,00 3,20 3,20
5 Equipment 0 10% 0 0 3,200
3,552,66 3,552,66
Total 0 0 3,552,660
3,780,66 3,780,66
Depreciation & Amortization 0 0 3,780,660

Sale
(at70%) Price/ kg Total
Meat Produce 3592516.2
Less Dead 5% 179626
3412890
Less Sale
Bonus 2% 68258
Net Sale 3344633 200 668926516.4

(at 80%)

meat Produce 4105732.8

Less Dead 5% 205287
3900446
Less Sale (At
Bonus 2% 78009 100%)
Net Sale 3822437 225 860048378.3 5132166
(at 90%)

Meat Produce 4618949.4

Less Dead 5% 230947
4388002
Less Sale
Bonus 2% 87760
Net Sale 4300242 250 1075060473

BALANCE SHEETS

PROJECTED BALANCE SHEET

As on 2010 2011 2012 2013

Rs. Rs. Rs. Rs.
Owners Equity &
Liabilities
Capital & reserves:
24,000,0 24,000,0
Capital 24,000,000 24,000,000 00 00
78,360,2 139,594,6
Retained earning 0 31,530,673 81 10
102,360,2 163,594,6
Sub Total 24,000,000 55,530,673 81 10
Long Term Liabilities
21,600,0 14,400,0
The bank of Punjab loan 36,000,000 28,800,000 00 00
21,600,0 14,400,0
Sub Total 36,000,000 28,800,000 00 00
Current liabilities
Account payables
12,740,4 16,499,1
Workers Welfare Fund 0 9,457,045 74 29
Accrude expense 0
tax payable 0 0 0 0
sub total 0 9457045 12740474 16499129
136,700,7 194,493,7
Total Equity & Liabilities 60,000,000 93,787,718 55 39
Assets
Fixed Assets
41,458,0 37,905,4
Fixed assets 45,010,743 45,010,743 83 23
3,552,6 3,552,6
Less:Acc. Dep. - 3,552,660 60 60
37,905,4 34,352,7
Net Fixed Assets 45,010,743 41,458,083 23 63
 912,00 684,00
Pre-Production Exp. 1,140,000 1,140,000 0 0
Less Amortized - 228000 228000 228000
684,00 456,00
Net Pre-Production Exp. 1,140,000 912,000 0 0
38,589,4 34,808,7
Sub total 46,150,743 42,370,083 23 63
Current Assets
Debtors 0
store & spare 0
Advances deposits & other 0
short term investment 0
98,111,3 159,684,9
Cash &bank balance 13,849,257 51,417,635 32 76
Sub total 13849257 51417635 98111332 159684976
136,700,7 194,493,7
Total Assets 60,000,000 93,787,718 55 39

RATIOS
7.7 9.6
CURRENT RATIO 5.44 0 8
7.7 9.6
CASH RATIO 5.44 0 8
DEBT TO EQUITY 68.89% 33.55% 18.89%

CASH FLOWS

PROJECTED CASH FLOW

For the Year Ended 2010 2011 2012 2013
Rs. Rs. Rs, Rs.
Sources
824,956,45
Operating Profit 0 472,852,256 637,023,718 3
Add:Dep. & Amort. 0 3,780,660 3,780,660 3,780,660
Equity 24,000,000
Other Sources
Long Term Loans 36,000,000
828,737,11
Total 60000000 476,632,916 640,804,378 3
Uses
Fixed Asset 45,010,743
Pre-Production Exp. 1,140,000
Long Term Loans 0 3,600,000 7,200,000 7,200,000
Re-Payment of:.
Financial Exp. 0 1,456,000 4,979,200 3,798,400
Tax Paid 0 184684485 247630417.6 321772369.5
434,392,69
Profit Distribute 0 249,324,054 334,301,064 9
Inc/(dec) in Current asset 0 0 0 0
Total 46,150,743 439064539 594110681 767163468.4
61,573,64
Net Cash Inflow/(Outflow) 13,849,257 37,568,378 46,693,697 4
98,111,33
Balance Opening 0 13,849,257 51,417,635 2
159,684,97
Balance Closing 13,849,257 51,417,635 98,111,332 6
 FINANCIAL RATIOS & COMMENTRY

RATIOS
CURRENT 5.4 7.7 9.6
RATIO 4 0 8
5.4 7.7 9.6
CASH RATIO 4 0 8
DEBT TO
EQUITY 68.89% 33.55% 18.89%

CURRENT RATIO: 5.44 7.70 9.68

The current ratio trend is increasing in the future years by 2 in each year. We
should have to check it out with comparing with the industry average. The
most of our cash is now going to be blocked in our inventories & account
receivables. We should check it out and retain it close to 2:1 or 3:1. it also
means that our current assets are increasing, other words our inventories of
raw material & finished goods and account receivables are also increasing.
We should check their balance and manage them in an effective manner.

CASH RATIO: 9.68

5.44 7.70
The cash ratio also shows increasing trend and good liquidity position of the
business in near future. The increasing cash also requires attention, why we
are retaining so much cash instead of its further investment. It is also good
for business as it increases the credibility of the business. The excess cash
help us to expand our business and to explore new investment opportunities.

LIQUIDITY 68.89 33.55 18.89

RATIO:

The liquid ratio is also going to be decrease. The increasing trend shows not
good solvency position of a business. It will not attract the stakeholders to
the industry; enhance the relationship with the Supplier and creditors.

GROSS PROFIT 70.95 74.29 76.93

RATIO:
The gross profit ratio also shows increasing trend. The increasing margin
trend is beneficial for the business. The comparison with the industry
averages and with competitors gives us insight in our weakness and
strengths. If we check it, it shoes the increasing performance of the business.

OPERATING PROFIT
RATIO: 70.07 70.07 76.74

The increasing trend in operating profit ratio is not same as Gross profit
ratio. Although there is increasing trend in this ratio but we have to check
our Admin, Selling & General expenses. We should have to control over them
& check them as per their requirement & their benefit cost ratio; if the
benefits of these expenses are less than their cost then we have to decrease
them.

NET PROFIT RATIO: 34.06% 33.52% 35.52%

The decreasing trend in net profit is not good. The debt burden & interest
payments affect it, but as the debt burden decrease down it shows increase
from 3rd year.

DEBT/ TOTAL EQUITY RATIO: 68.89 35.55 18.89

The debt to total equity ratio shows decreasing trend that is beneficial for
the owners that the business investment proportion is now shifting towards
them. As the new profit is re-invested in the business, the total equity shows
more increasing trend. The gradual payment of the debt also decreases the
numerator. And ratio shows decrease in the next years. Means the owners
share is increasing & outsiders claim is going to be decrease. The overall
increase in the GP Ratio, Net Profit Ratio, Liquid Ratio and Cash Ratio
increases the credibility of the industry. The deal with fund providers in the
future gives good results & we can start the expansion easily.

SWOT ANALYSIS
A). STRENGTH

1) Foctory is the base of meat and animal.

2) It is the main part of the economy.
3) Provides meat for food for human beings.
4) In Pakistan, there is wide scope of animal production.
5) Providing employment to the people.
6) There is a huge demand and supply gap in this sector.
7) The factory totally depends upon machinery.

B). WEAKNESSES

1) No proper system of keeping record infoctory

2) Using traditional approach in due to lack of education, skill and management.
3) Management of animal is very difficult task.
4) Heavy losses in this sector due to diseases l.
5) There is little bit research work.

C). OPPORTUNITIES

1) The demand for maet remain alive and can’t end.

2) Increasing production of healthy and sound animal time to time..
3) It is becoming a compulsory item in every ceremony in the society.
4) As population is increasing day by day the production of animal also increasing.
5) Government is giving priority to this sector.

D). THREATS

1) There is high risk in industry.

2) Complicated and defective markets in our economy.
3) There is a gap between the prices of Inputs and Outputs.
4) Banking sector hesitate to lending loans due to the fear of default.
5) There is no saving and holding capacity due to increasing of poverty.
6) Tax relaxation is not provided.
7) There may be huge losses because this sector depends upon the demand, if the demand is
very less than the supply.