slater house

8/9/2019 Slater House

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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 its 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 startcommercial production on 1 st jan, 2011. The details of the project appraisal are discussed indetails in next pages. In line with our project appraisal team, we have provided all informationsand will present further details related to the project on the final presentation.

ThanksYours Sincerely,

Mr.Shoaib Nishter Mr. Hafiz NaveedMr. M.Ismail

INTRODUCTION

NAME: Taj Slaughtering House

STATUS: Partnership Business

PRODUCTION DATE: 30 th 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 growthcycle needs a certain period to fill the gap made by slaughtered animals but rapidincrease in daily use, change in consumption patterns, use of more meat in food table


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and economic up lift has increased the demand by many folds resulting inslaughtering of premature animals, poor carcass quality and quantity wise andincrease in price. If this practice continued, there would be a huge gap betweensupply and demand, forcing the import of meat at large scale. At present smallruminant 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 casesrange areas are either over crowded or with out grazing systems, resulting in poor nutrients supply to animals and damage to rangelands themselves. The disappearanceof desirable fodder species and propagation of unwanted plants make this situationworsened 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 atdifferent areas illegally. Now it is need of time that if public sector can not meet thechanging 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 theUruguay Agreement, to define rules for setting national standards and regulationsrelating to sanitary and phytosanitary measures to protect human or animal healthfrom 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 countrys trade, asthe real commercial level export started in not before than. Thus, the export of meatand 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 meatexports in future. So, meat export is bound to be a good contributor to Pakistansforeign 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 meatto the Middle East and Afghanistan. The country, though rich in livestock, rarely gota chance to export meat or meat products to earn foreign exchange. It was offered anopportunity when various Middle East states stopped importing meat from Europeancountries due to the incidence of the mad cow disease. Meat export from Lahorestarted in the beginning of the year 2000 when carcasses of goats and large animalswere airlifted. The meat was processed under a special arrangement between theexporters and the Metropolitan Corporation of Lahore, which runs four abattoirs inthe city.

Meat Markets:Currently, meat sector in Pakistan is working on an informal basis from animalraising to meat selling. Animal traders purchase animals from the rural areas and sell


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them to the animal markets in the urban areas. Butchers purchase these animals fromanimal markets and slaughter them in the slaughterhouses. Butchers act as meattraders and dominate the meat market both in rural and urban areas. The animals soldin 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 rawmaterials available.

OpportuiityRationale

Pakistan is situated along both sides of the historic Indus River, following its coursefrom 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 greenvalleys to stark mountain peaks. The estimated human population is 153. 96 millionwith 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 countrys population while Sindh (23%), NWFP (16%) and Balochistan (5%) provinces sharethe rest. Agriculture is the mainstay of Pakistans economy. Livestock sector contributes almost 50 percent to the value addition in the agriculture sector, andalmost 11 % to Pakistans GDP, which is higher than the contribution made by thecrop sector (47.4% in agriculture and 10.3 % in GDP). The role of livestock sector inthe 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 theavailability of products from various sources differ drastically. To meat the domesticdemand 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 pressurecontinues to grow and livestock production stays at the same level, then food deficitmay become larger. According to one recent survey, in coming years, milk, red meatand 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 sufficientlyhigh standard but still simple would improve the situation. Therefore, this prefeasibility

study has been made of a medium size slaughterhouse equipped withmedium level semi mechanized technology. By providing value added services, theslaughterhouse can utilize the abundant and unexplored resources of Pakistan.

THE CURRENT SLAUGHTERING PRACTICES:

Public Sector:


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For carrying out study of present slaughtering practices Lahore market has beenselected. In Lahore, there are four slaughterhouses owned and managed byMunicipal Corporation Lahore (MCL) at Kot Kamboh, Baghbanpura and Shahdarawith 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 yearsago, and at when a time municipal engineering and public health requirements wereless stringent and different from those prevailing now. These slaughterhouses handlethe bulk of public slaughters, and as such, they are not slaughterhouse but can bereferred to as slaughter slabs merely a place for slaughter arrangement of hygiene and sanitation. These premises merely make facilitiesavailable 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.


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No storage facility and sufficient quality control measures are available there. Mostof the times, Meat gets rotten especially in summer season. This problem isintensified while the meat is sold through the butchers shops to final customers. Allthe meat is not sold to customers in daytime, and not all the unsold meat is frozen tokeep 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 conditionsare 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 MureedkaShiekhupura road currently this slaughterhouse can process 500 small animals per day. Another slaughterhouse is situated at Kot -Lakhpat, which has only a chiller andno slaughtering and de-skinning facilities. These slaughterhouses have insufficientcapacity to fulfill the local and international demand for meat.

MARKEETING:

The proposed slaughterhouse will identify and develop such services and productsthat will help to cater the unfulfilled market for quality meat and its by-products inan 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 andcreate a competitive strength over municipality-owned and managed

slaughterhouses. This unique marketing position can be attained through formulationan adequate marketing mix. The slaughterhouse can achieve differential competitiveadvantage 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 theabove options. The prices of services have been taken at current/prevailing marketand there is a margin to decrease prices of services offered.


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The decision of selecting the distribution channel will be based on the identificationof target market.For local market, the slaughterhouse can target the needs of health conscious peoplethrough 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 refrigeratorsto major departmental stores of Lahore filled with product free of cost, and a marginof 5% will be offered to shop keepers on selling each productForeign 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) and300 large

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

Land and BuildingSlaughter house will be built on the area of 5 Acres / 40 Kanals . The

details of land utilization are given in below.


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Land and its development

Cost of LandSize Acre Cost per acre Total

Land 5200,00

01,000,00

0

Cost of Registration 6%60,00

0

Cost of Transfer 2%20,00

0

Bounday Wall and Main Gate450,00

0

Legal Charges50,00

0

Brokerage fee 1.00%10,00

0

Total1,590,00

0

Building and Civil Works

Factory BuildingArea

Sq ft Rate per Sq ft Cost

Machineries building2,24

030

0672,00

0

Slaughters room1,12

030

0336,00

0

Freezers Room48

030

0144,00

0

Store96

030

0288,00

0

Packing room1,45

630

0436,80

0

Meat Room40

030

0120,00

0

Open space14

430

043,20

0

Galleries2,40

030

0720,00

0

Office14

430

043,20

0

Total2,803,20

0Air Conditioning and electricity 4,000,00


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(internal) 0

Furnishing and water supply network1,500,00

0

Total5,500,00

0

Total

8,303,20

0OPEEAATIONAL PROCESSES

LairageThe 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, whilethe 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 theanimal (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 withfacilities/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 thecarcass. It is important that the carcass remains or is placed in the hanging positionon railing.

Post-mortem nspectionInspection 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 themfrom the public meat supply .

Rigor MortisprocessBefore chilling, for at least 2-4 hours, air is provided by fans to carcasses in a

separate room


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PERSONNEL ANALYSIS

It is essential to provide adequately trained staff to carryout the above processes andimprove 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

S.No Type of Staff Number BasicSalary TotalSalaries

RequiredPer Person

Per year

Per Month

(inRurees)

A. Factory Staff (IncludingManagerial, Technical, Skilledand un-skilled ).

1 veternery doctor 1 25000 3000002 neutritionist 1 12000 1440003 Shift Incharge 3 10000 3600004 Machine Operator 3 9000 3240005 Security Guard 3 7000 2520006 Driver 2 8000 1920007 Sweeper 1 6000 72000

14 Total A = 1644000Add:FringeBenefits(@50% of Total A. 822000

Total Salaryof FactoryStaff 2466000

B. Administrative and General Staff


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1 Accountant 1 22000 2640002 admin.oficer 2 10000 2400003 technician 1 6000 720004 Receptionist 1 8000 96000

5 Total B= 672000Add:Fringe Benefits(@50% of Total B. 336000

Total Salary of Admin. &Gen. Staff 1008000

C. Sales Staff 1 Sales Representative 2 10000 2400002 Advertising 1000003 Helper 2 6000 144000

4 Total C.= 484000Add:Fringe Benefits(@50% of Total C. 242000

Total Salary of SalesStaff. 726000

EquipmentThe standard installation and equipment required in modern slaughterhouse are those

necessary to effect a rapid and hygienic conversion of livestock into meat.

hooks70,00

0

spreaders80,00

0

steel60,00

0

sticking knife70,00

0

skinning knife50,00

0

meat saw60,00

0

meat chop90,00

0

total480,00

0

Machines


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Machinary and EquipmentItem Cost Total Cost

Machinary and Equipment 63,400,00

020,400,00

0

slaughtering machine 680,00

0480,00

0

Pressure Tank and Other Motor 2100,00

0200,00

0

Electric Generator 21,800,00

03,600,00

0

packing machine1

22,00

024,00

0

cooling machine150,00

0

Water Turbine 160,00

060,00

0

AC Ducting 1800,00

0800,00

0

Total25,714,00

0

Relatively fewer tools


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

REGULATIONS

RegistrationPermission is required from Local Municipal Authority before starting constructionof an abattoir.

Application for permission is to be submitted to:Secretary Livestock DepartmentLocal municipal authority

No fee is required for submission of application .Public veterinarian/doctor will be required for inspection of meat who will work on


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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 projectFinanacial Plan

Cost of the Project Local Foreign TotalRs. Rs. Rs.

Land and its Devolpment1,590,00

01,590,00

0

Building and Civil Work8,303,20

08,303,20

0

Machinary and Equipment25,714,00

025,714,00

0Engineering and TechnicalFee

100,000

100,000

Furniture and Fixture69,00

069,00

0

Vehicles2,780,00

02,780,00

0

Preproduction Expense1,140,00

01,140,00

0

Office Equipment32,00

032,00

0

Contingencies400,00

0400,00

0

Others182,54

3182,54

3

Intrest During Construction5,840,00

05,840,00

0

Total Fixed Cost46,150,74

346,150,74

3

Initial Working Capital74,052,65

274,052,65

2

Total Cost of the Project60,000,00

060,000,00

0

Net Fixed Assets 45,010,743


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CALCULATION OF INTEREST

Nmae of Bank NIBP

Amount of loan36,000,00

0

Rate Of Intrest 16%per Annuam

Period Of Loan 5 Years 360Repayment of Intrest Quartely InstalmentRepayment of Instalment Half YearlyDate of Disbursement of Loan 3/31/2010Completion of the Project 31/12/2010Date of Commercial Production 31/3/2011Date of Repayment of principle 30/6/2011 6 Instalment

No of Principle Amount Total Outstanding Due Dates Days Instalment of Intrest Instalment Principle

3/31/2010 0 0 0 -36,000,00

0

6/30/20109

1 01,456,000

1,456,000

36,000,000

9/30/20109

2 01,472,000

1,472,000

36,000,000

12/31/2010

9

2 0

1,472,00

0

1,472,00

0

36,000,00

0

3/31/20119

0 01,440,000

1,440,000

36,000,000

6/30/20119

13,600,00

01,456,000

5,056,000

32,400,000

9/30/20119

21,324,800

1,324,800

32,400,000

12/31/20119

23,600,00

01,324,800

4,924,800

28,800,000

3/31/20129

11,164,800

1,164,800

28,800,000

6/30/20129

13,600,00

01,164,800

4,764,800

25,200,000

9/30/20129

21,030,400

1,030,400

25,200,000

12/31/20129

23,600,00

01,030,400

4,630,400

21,600,000

3/31/20139

0864,00

0864,000

21,600,000

6/30/20139

13,600,00

0873,60

04,473,60

018,000,00

09/30/2013 9 736,00 736,00 18,000,00


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2 0 0 0

12/31/20139

23,600,00

0736,00

04,336,00

014,400,00

0

3/31/20149

0576,00

0576,000

14,400,000

6/30/2014

9

1

3,600,00

0

582,40

0

4,182,40

0

10,800,00

0

9/30/20149

2441,60

0441,600

10,800,000

12/31/20149

23,600,00

0441,60

04,041,60

07,200,00

0

3/31/20159

0288,00

0288,000

7,200,000

6/30/20159

13,600,00

0291,20

03,891,20

03,600,00

0

9/30/20159

2147,20

0147,200

3,600,000

12/31/20159

23,600,00

0147,20

03,747,20

0

Total 36,000,000 20,460,800 56,460,800

Intrest during Construction

from 3/31/2010 to 3/31/20115,840,00

0

2011 2012 2013 2014 2015 2016

Interest1,456,00

04,979,20

03,798,40

02,630,40

01,462,40

0294,40

0

Instalments3,600,00

07,200,00

07,200,00

07,200,00

07,200,00

03,600,00

0

ASSUMPTIONS


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land in acr 5cost of registeration 6.00%cost of land per acr 200000legal expense 50000Rate per Square ft building Rs 300depriciation 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 15840months in a year 12days in a month 30price of per kg meat 200price of animal 3000estimated load shading hours 10

fuel utiliazationliter per hr 20

daily fuel used liter 200monthly fuel consumption liter 6000yearly fuelconsumption 72000fuel per liter 65

INCOME STATEMENTS


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Income Statement

For the Year ended 2011 2012 2013operating efficiencyassumed Rs. Rs. Rs.

Sales668,926,5

16860,048,37

81,075,060,4

73Cost of good Sold:.

Raw material consumed179,625,6

00205,286,40

0230,947,2

00

Labour 2,466,0

002,712,60

02,983,8

60

Manufacturing expense8,696,0

009,565,60

010,522,1

60

Depreciation3,552,6

603,552,66

03,552,6

60

Cost of good Sold194,340,2

60221,117,26

0248,005,8

80

Gross Profit474,586,2

56638,931,11

8827,054,5

93Operating Expenses

General and Admin. Expenses1,008,0

001,108,80

01,219,6

80

Selling Expenses726,00

0798,60

0878,46

0

Total Operating Expenses1,734,0

001,907,40

02,098,1

40

Operating Profit472,852,2

56637,023,71

8824,956,4

53Non-Operating Expenses

Financial Exp. 1,456,000 4,979,200 3,798,400

Amortization of preproduction exp.228,00

0228,00

0228,00

0

Workers Welfare Fund (2%)9,457,0

4512,740,47

416,499,1

29

Total Non-operating Exp.11,141,0

4517,947,67

420,525,5

29

Profit before Tax461,711,2

11619,076,04

4804,430,9

24

Tax184,684,4

85247,630,41

8321,772,3

70

Net Profit after Tax

277,026,7

27

371,445,62

6

482,658,5

54

Raw Material


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a b axbx12

ItemMonthly

Requiredcost per

ItemTotal (at100%) (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 42350002 Generator 4680000 5148000 56628003 Maintance Exp. 300000 330000 3630004 Carriage in 8000 96000 105600 1161605 Carriage out 10000 120000 132000 145200

Total 8696000 9565600 10522160

Depreciation Expense

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

1 Building8,303,20

0 5%415,160

415,160 415,160

2 Machinary25,714,00

0 10%2,571,40

02,571,40

0 2,571,400

3 Vehicle2,780,00

0 20%556,000

556,000 556,000

4 Furniture69,00

0 10%6,90

06,90

0 6,900

5OfficeEquipment

32,000 10%

3,200

3,200 3,200

Total3,552,66

03,552,66

0 3,552,660

Depreciation & Amortization

3,780,66

0

3,780,66

0 3,780,660

Sale(at70%) Price/ kg Total

Meat Produce 3592516.2

Less Dead 5% 1796263412890

Less SaleBonus 2% 68258

Net Sale 3344633 200 668926516.4

(at 80%)

meat Produce 4105732.8

Less Dead 5% 2052873900446

Less SaleBonus 2% 78009

(At100%)

Net Sale 3822437 225 860048378.3 5132166


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(at 90%)

Meat Produce 4618949.4

Less Dead 5% 2309474388002

Less SaleBonus 2% 87760Net Sale 4300242 250 1075060473

BALANCE SHEETS

PROJECTED BALANCE SHEET

As on 2010 2011 2012 2013Rs. Rs. Rs. Rs.

Owners Equity &LiabilitiesCapital & reserves:

Capital 24,000,000 24,000,00024,000,0

0024,000,0

00

Retained earning 0 31,530,67378,360,2

81139,594,6

10

Sub Total 24,000,000 55,530,673102,360,2

81163,594,6

10Long Term Liabilities

The bank of Punjab loan 36,000,000 28,800,00021,600,0

0014,400,0

00

Sub Total 36,000,000 28,800,00021,600,0

0014,400,0

00Current liabilitiesAccount payables

Workers Welfare Fund 0 9,457,04512,740,4

7416,499,1

29Accrude expense 0tax payable 0 0 0 0sub total 0 9457045 12740474 16499129

Total Equity & Liabilities 60,000,000 93,787,718 136,700,755 194,493,739 Assets

Fixed Assets

Fixed assets 45,010,743 45,010,74341,458,0

8337,905,4

23

Less:Acc. Dep. - 3,552,6603,552,6

603,552,6

60

Net Fixed Assets 45,010,743 41,458,08337,905,4

2334,352,7

63


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Pre-Production Exp. 1,140,000 1,140,000912,00

0684,00

0Less Amortized - 228000 228000 228000

Net Pre-Production Exp. 1,140,000 912,000684,00

0456,00

0

Sub total 46,150,743 42,370,083

38,589,4

23

34,808,7

63Current AssetsDebtors 0store & spare 0Advances deposits & other 0short term investment 0

Cash &bank balance 13,849,257 51,417,63598,111,3

32159,684,9

76Sub total 13849257 51417635 98111332 159684976

Total Assets 60,000,000 93,787,718136,700,7

55194,493,7

39

RATIOS

CURRENT RATIO 5.447.7

09.6

8

CASH RATIO 5.447.7

09.6

8DEBT TO EQUITY 68.89% 33.55% 18.89%

CASH FLOWS

PROJECTED CASH FLOW


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For the Year Ended 2010 2011 2012 2013Rs. Rs. Rs, Rs.

Sources

Operating Profit 0 472,852,256 637,023,718824,956,45

3

Add:Dep. & Amort. 0 3,780,660 3,780,660 3,780,660Equity 24,000,000Other SourcesLong Term Loans 36,000,000

Total 60000000 476,632,916 640,804,378828,737,11

3UsesFixed Asset 45,010,743Pre-Production Exp. 1,140,000Long Term Loans 0 3,600,000 7,200,000 7,200,000Re-Payment of:.Financial Exp. 0 1,456,000 4,979,200 3,798,400

Tax Paid 0 184684485 247630417.6 321772369.5

Profit Distribute 0 249,324,054 334,301,064434,392,69

9Inc/(dec) in Current asset 0 0 0 0Total 46,150,743 439064539 594110681 767163468.4

Net Cash Inflow/(Outflow) 13,849,257 37,568,378 46,693,69761,573,64

4

Balance Opening 0 13,849,257 51,417,63598,111,33

2

Balance Closing 13,849,257 51,417,635 98,111,332159,684,97

6


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FINANCIAL RATIOS & COMMENTRY

RATIOSCURRENTRATIO

5.44

7.70

9.68

CASH RATIO 5.44 7.70 9.68DEBT TOEQUITY 68.89% 33.55% 18.89%

CURRENT RATIO:

The current ratio trend is increasing in the future years by 2 in each year. Weshould have to check it out with comparing with the industry average. Themost of our cash is now going to be blocked in our inventories & accountreceivables. We should check it out and retain it close to 2:1 or 3:1. it alsomeans 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:

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

LIQUIDITY RATIO:

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

GROSS PROFITRATIO:

5.44 7.70 9.68

5.44

7.70

9.68

68.89 33.55 18.89

70.95 74.29 76.93


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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 infoctory2) 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 cant 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.

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