Sugar Mill

M.com Finance

Project On Sugar Mill

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A Project Report On Mamoon Sugar Mills Private Limited

Islamia University Bahawalpur

Department Of Commerce

M.com Finance




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M.com Finance




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M.com Finance

Sr. No.


Contents

1 2 3 3 4 5

Preface Acknowledgement Dedication Table of contents Table of Annexure Executive Summary

6 7 8 9 10 11 13 14 15 16

Introduction of company Location for plant Product Range Market Analysis Process flow Ratios Analysis SWOT Analysis Technical analysis Personnel Analysis Projected income statement

17 18 20

Projected Balance Sheet Projected Cash Flow Statement Suggestions and Recommendations



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M.com Finance

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Project Managers…

Project Management is an integral part of M.com (Finance) program, because it gives us the practical knowledge of what we have learnt during our study period. Now Now a day day the busi busines ness s envir environm onment ent keep keeps s on changi changing ng everywhere. New dimensions of business are coming before us. These dramatic and dynamic changes in business world require the specialties about the all aspects of business of today. Because of these requirements business knowledge became important and business education becomes the need of time. The person with latest knowledge can survive in this vast field. But prac practi tica call knowl knowled edge ge is also also necess necessary ary alon along g with with the the theoretical knowledge. This made the Project Management and Appraisal an integral part of M.com (Finance). One can see how the theories and knowledge are being practically implemented. This report is about the Sugar Mill. We prepared the financial data of company and this report carried the information about orga organi niza zati tion onal al,, fina financ ncia iall data data,, st stre reng ngth ths s and and weak weakne ness sses es of Sugar Mill.



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We pay our humble gratitude, with humility and submission, submission, to ALLAH, the Almighty, the Omniscient, the Omnipotent & the Omnipresent, who bestowed our potential to accomplish this task. The completion of this issue is, mere, the blessing of ALLAH and Holy Prophet Hazrat Muhammad (Saw) . Secondly, we must mention “Sir Javed Iqbal” for being kind enough to extend his baseline guidance in the completion of this project report. We also also than thank k ever everyo yone ne else else in incl clud udin ing g our our resp respec ecta tabl ble e teachers and outspoken friends of the Department who helped in one way or another in the completion of this project.



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TO OUR

PARENTS & TEACHER Sir Javed Iqbal The Chairman Of Department Of Commerce



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The The suga sugarr indu indust stry ry play playss an impo import rtan antt role role in the the econ econom omy y of the the country. It is the second largest industry after textiles. At the time of independence in 1947, there were only two sugar factories in Pakistan. The output of these factories was not sufficient for meeting the domestic requirements. The country started to import sugar from other countries and huge foreign exchange was spent on this item. Need was felt to increase the production of sugar. Keeping in view the importance of sugar industry, the Government setup a commission in 1957 to frame a scheme for the development of sugar industry. In this way the first sugar mill was established at Tando Muhammad Khan in Sindh province in the year 1961. At present there are 76 sugar mills operating in Pakistan. The Sugar Sugar indust industry ry employ employss over over 75000 75000 people people,, includ including ing manag managem ement ent experts, experts, technolog technologists, ists, engineers engineers,, financia financiall experts, experts, skilled, skilled, semiskill semiskilled ed and unskilled workers. It contributes around 4 billion rupees only under the head of excise duty and other levies to the Government are also paramount significance. The output of sugar as well as the production of sugarcane increased at an average rate 24 percent and 11.7 percent. But the increased out put could not meet the requirements



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Mammon sugar mills is located at Hasilpur road for this purpose we acquire 400 canals. Our Our project has a capacity capacity of producing 10000 10000 bags per day in 3 shifts of 8 hours each. We purchase sugarcane as raw material from sadiqabad and qusoor @ 230 rupees per Mann we also purchase some chemicals which is used in production process. We require heavy machinery from “Heavy Mechanical Complex’’ (HMC) our project includes 40% of equity and 60% debt. We obtained this debt from The Bank Of Punjab. Our main product is sugar and molasses and mud as by product. We sell sugar in 50 kg bags. We also sell molasses in Karachi and mud to the farmers they use it as fertilizers.



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Name of the Project:

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Mamoon Sugar Mill

Loca Locati tion on for for our our suga sugarr mill mill is Hasi Hasilp lpur ur Road Road.. The The reas reason onss for for choosing this area are as follows. •

•

•

•

•

This area is not classified under residential area and the City authority for industry industry location location has approved approved it as an industrial industrial state. state. So it is best for industry. Moreover here is no residential colony near so we will not find the problem to set up our plant there. The main BWP City is near to this area so we can capture the market of the city. Moreover raw material and labor can be achieved from the city that is close so the high cost on getting labor and transport from other city can be saved. BWP is situated between Multan, Rahim Yar Khan and SADIQABAD. Also a link with Hasilpur too. So establishing our plant there will be a great opportunity to capture the market of these cities too. Labor and raw material can also be achieved from these areas as these are related with agriculture sector. As concerne rned with infras rastruc ructure, roa roads and all means of commun communica icatio tion, n, BWP provid provides es great great opport opportuni unitie ties. s. So that that area area insures us quick delivery and supply of material, communication and link link with with othe otherr mark market ets. s. Bett Better er ways ways to comm commun unic icat atee and and well well position of roads and infrastructure will help help to enhance enhance our goodwill in markets. As our concerned product is related with agriculture sector and this area is purely an agriculture sector so raw material will be easily



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available. We don’t need to move far away for raw material. This will save our cost. Low production cost will lead towards low per unit cost. Facil Facilit ity y of rail railwa way y stat statio ion n is avai availa labl blee ther theree too. too. Rece Receiv ivin ing g and and • forw forwar ardi ding ng the the mate materia riall thro throug ugh h rail railwa way y mean meanss can can be prov proved ed beneficial for us. By taking into account all the above reasons and facilities and considering the facilities that are related to that specific area we can prefer this area, perfect for becoming an industrial state. Only need to be taking a step that will lead our plant towards great opportunity for profit and goodwill.

Sugar Our main product is sugar we produce white refined sugar 10000 bags Per day. We produce 8 kg sugar from 40 kg of sugar cane.



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Molasses Our Sugar Mills also manufactures molasses in bulk. It is also the main product of our sugar mill.

Mud We sell mud to farmers They use it as a fertilizer.

Installed Capacity of the Project: The installed capacity of the project at 100% is 10000 sugar bags produced daily with 3 shifts shifts in 24 hours. The duration duration of our production is is 4 months.

PRODUCT PRODUCTION CAPACITY 100% Sugar bag of 50 kg Molasses in liter Mud 50 kg bags Working days p.a. No. of Shifts per day


Sugar

10000 1200 25000 120 3


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Estimated Production

a)

Production of Suger

b) Porduction of Molasses c) Muds

2011 2012 2013 960 1,020 1,080 115 122 130 2,400 2,550 2,700

Estimated Cost of the Project: We have decided in this report we have used different techniques that are necessary to make any investment decision. By working at this company we find so many useful insights about juice manufacturing sector. We have decide decided d “Hsail “Hsailpur pur Road” Road” as locati location on for plant. plant. The Estim Estimate ated d cost cost of project is Rs. Fig.1.3 Fixed Cost Initial Working Capital Total

4,186,020000 178,980000 4,365,000000

Means of Finance: Our means of finance is divided on Debt and Equity at 60:40. The long-term loan is 2,619,000 at the rate of 16% 16% for 5 years and and the remaining cost of of project is invested two partners 1,746,000 equally. Fig.1.4 Means of Finance Debt Equity Capital Total Debt Equity Ratio


2,619,000 1,746,000 4,365,000 60:40


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Name of Lander: The Bank of Punjab Pakistan is the name of institute that provide us loan at the rate of 16%.

Name of Sponsors: Muhammad Mudassir Basher Salman Saeed

Name of Civil Contractor: We get get this this faci facili lity ty by Mr. Mr. Muha Muhamma mmad d Yase Yaseen en.. He Cons Constr truc uctt a building of our company and provide necessary information. Address: Apna Home Designer Designer Hasil Pur Road Road Bahawalpur. Bahawalpur. Contact Number: 0301-3334445 0301-3334443

Machinery Suppliers Heavy Mechanical Complex (HMC) Telephone : 92-51-9270562 ( 4Lines 4Lines ) 92-596-9314181 Fax : 92-51-9270560, 92-0596-9314202 , 9314203 Telex : 5607 HMC PK, 5512 5512 HFF PK E-mail : [email protected] [email protected] [email protected] [email protected] [email protected]



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Implementation Schedule: • •

•

•

• •

•

•

The sanction date of above proposed project is 17 th May 2010 The legal formalities of the proposed project will be completed by 20 th June 2010 Civil work will start as soon as the legal formalities are fulfilled and the loaned amount is obtained. Civil Civil work will take take the time period period of approximatel approximately y of 5 months and will start from the 1 st August 2010 At 1st June 2009 machineries will be ordered Delivery of machines will take 3 months and the machinery will be at site at 5th September 2009 The machinery will be installed in at least 1 year and it will be ready to start its trial once operations by the end of 1 st September 2010 The trial once operations operations will take take period of one months and it will end st by the end of 1 October the project will start its commercial operations operations st from the 31 October 2010.



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1) Current Ratio= Current Assets/Current Liabilities 2011

2012

2013

1.85

2.35

3.05

Interpretation: An indi indica cati tion on of a comp compan any' y'ss ability to mee meet sho short-t rt-term erm deb debtt obligations;; the higher the ratio obligations ratio,, the more liquid the company is. Current Islamia University Bahawalpur


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ratio is equal to current assets divided by current liabilities. liabilities . If the current assets of a company are more than twice the current liabilities liabilities,, then that company is generally considered to have good short-term financial strength strength.. If curren currentt liabil liabiliti ities es exceed exceed curren currentt assets assets,, then then the compan company y may have have problems meeting its short-t short-term erm obliga obligatio tions. ns. In the above case case there there is positive trend.

2) Quick ratio = Current Assets-(Ending inventoryPrepaid expenses- A/R) /Current Liabilities 2011 0.91 time

2012

2013

0.79 time

0.79 times

Interpretation: A stringent test that indicates whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory. The acidtest ratio is far more strenuous than the working capital ratio, primarily becau because se the worki working ng capita capitall ratio ratio allow allowss for the inclus inclusion ion of invent inventory ory assets. assets. There is rapid Positive Positive trend and then slightly slightly negative negative trend as the ratio is decreasing.

3) Cash ratio= cash equivalent+marketable sec/current Liability. 2011 0.95 times


2012

2013

1.57 times

2.26times


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Interpretation: The cash ratio measures the extent to which a corporation or other entity can quickly quickly liquidate assets and cover short-term liabilities liabilities,, and therefore is of interest to short-term creditors creditors.. In the above case there is increasing trend that shows a positive sign.

4) Gross Profit Margin = Gross profit/ sales 2011

2012

2013

65.66%

67.87% 68.17%

Interpretation: The The Gros Grosss inco income me marg margin in incl includ udes es only only Gros Grosss inco income me in the the numerator. In the above case there is increase from year 2011 to year 2013 in the Gross income margin percentage. Which show a favorable trend in gross profit margin.



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5) Operating profit margin = Operating profit/ sales 2011 65.53%

2012 67.75%

2013 68.05%

Interpretation: The operating income margin include only operating income in the numerator. numerator. In the above case there is much increase increase from year 2011 to year 2013 in the operating income margin percentage.

6) Net Profit Margin = Net Profit/ sales 2011

2012

2013

35.77% 34.89% 36.00%

Interpretation: This ratio gives a measure of net income Rs. Generated by each Re. of sale. While it is desirable for this ratio to be high. In the above case there is quick increasing trend which is very much favorable. f avorable.



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7) Debt/Equity Ratio = Total Long-term Debt/Equity 2011

2012

0.59

0.20

2013 0.13

Interpretation: Debt is also very low hence there is very low risk involved in the business. The company can easily cover the debts.

Net Number of Years Proft 0 1 2 3

Dep.

Amotrizatio n

0 0 46, 5 710 ,311 931 61, 5 827 ,311 931 70, 5 826 ,311 931 IRR

in/outflo w (100, 0 000) 54 ,952 68 ,069 77 ,068 40%

Fig.1.34



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Pay-Back Peroid Total Investment

100,000

Total Inflow

194,089 2



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Strengths The The comp compan any y has has alwa always ys valu valued ed its its empl employ oyee eess as part partne nerr in prog progre ress ss.. The The company‘s company‘s intellect intellectual ual capital capital is of great value value to the company. These partners partners have always made a difference through their hard work, commitment and fresh ideas. 1. A very good culture culture.. There is an environm environment ent of learning learning that that allows allows people to work in teams and learn from one and other. 4. A very very prog progre ress ssiv ivee manag managem emen entt appr approa oach ch.. Mana Manage geme ment nt alwa always ys stri strive vess to adopt better methods and practices. Quality circles are formed to highlight problems, study them, and come up with workable solutions to improve operations

Weaknesses: a) Lack Lack of of Entr Entrep epren reneur eurshi ship p b) Compan Company y newl newly y form formed ed

Opportunities Consumption of sugar is increasing every year. It means increasing demand of company’s products which mean more growth opportunities .

Threats: 1. Manufacturi Manufacturing ng sugar sugar is a fast growing growing busines business. s. Local players players are entering entering into the business so competition is increasing. So it will become difficult in future to maintain good profit margin.



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2. Incr Increa easi sing ng pric prices es of raw raw mate materi rial al has has caus caused ed the the cost cost of prod produc ucti tion on.. Incre Increas ased ed cost costss of tran transp sport ortat atio ion n are are also also incre increas asin ing g the the cost cost of doin doing g business. 3. Increasing Increasing oil oil prices and and energy energy crises in count country ry has created created problem problem for the company in the face of foreign companies. Cost of production is increasing on one one hand hand and and the the comp compaany is unab nable to avai availl oppo pportu rtunit nities ies on international level. 4. Water pollution and air pollution pollution may increase 5. WTO is a main main threat threat for for sugar sugar manufactu manufacturers rers in Pakistan Pakistan due due to their heavy cost of production that is due to heavy sales taxes and other indirect taxes.

At the present rate of growth in the sugar industry by way of addition new sugar mills seems to be very fast as about 12 sugar mills would come into operation in 1996-97. There would thus be a production surplus during 1997-98 through 199899. Another 6 to 8 sugar mills are in advance stage of processing with various Banks. These sugar mills include Raja, Qand Ghar, Madina, Sheikhoo, Seri etc. Thus there will be shortage of sugar cane to feed all these mills and a need for rationalization of the expansion of the industry. Sugar industry is the second biggest industry of Pakistan first being textile. It employs more than 30,000 workers and contributes Rs. 6380.395 million to the GDP. In 1994-95 it has entered into the export field and earned Rs. 1204 million m illion in Islamia University Bahawalpur


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foreign exchange in 1993-94 by exporting 121,561 tonnes of sugar. At present the industry has been faced with a number of problems. Some of these problems have been briefly discussed in the following paragraphs

.

LOCAL MARKET. There is only 1 sugar mill working in Bahawalpur named ashraf sugar mill millss limi limite ted d but but the the suga sugarr usag usagee in our our coun countr try y is very very high high so the the production of sugar is not increasing as demand or need increasing. So its our advantage that there is only 1 competitor by our production we will not only fulfill the needs of our area but we can supply sugar in other areas & provinces as well.

Production in Pakistan Pakistan during last 10 10 years years.

Name of Sugar Mills Operatings In Bwp

Ashraf Sugar Mills LTD Ashraf abad bahawalpur Tel: 062-2870361-3 Fax: 062-2870593



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Demand of sugar in Pakistan

Table 4: PROJECTION OF DEMAND AND SUGAR PRODUCTION CAPACITY 1998/99-2004/5 Year

Population In Million

Domestic Consumption in Tones

Projected Sugar Prod: Capacity In Tones

1998-99 134.51

2959000

3530850

19992000

137.51

3025220

2414746

2000-01 140.94

3100680

3304360

2001-02 144.47

3178340

3304360

2002-03 148.08

3257760

3304360

2003-04 151.78

3339160

3304360

2004-05 155.58

4322760

3304360

Source: Government of Pakistan, Economic Survey, 19992000, Islamabad, 2000, Statistical Section P.07

Prices Exe factory price per kg

Whole sale price per kg

Retail price per kg

56.7

60

63



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Analys Analysis is of techni technical cal and engine engineeri ering ng aspect aspectss is done done contin continual ually ly when a project is being examined and formulated. Other types of analysis are closely intertwined with technical analysis. The The broa broad d purpo purpose se of tech techni nica call anal analys ysis is is (a) (a) to ensu ensure re that that the the project is technically feasible in the sense that all the inputs required to set up the the proj projec ectt are are avai availa labl ble, e, and and (b) (b) to faci facili lita tate te the the most most opti optima mall formulation of the project in terms of technology, technology, size, location, and and so on.

Manufacturing Process Sugarcane is a perennial herb belonging to the grass family. Native to tropical and subtropical regions of the world, this tropical grass is 10-24-feet tall. bears long, pointed leaves, and has several stalks. The segmented stalks have a bud at each joint and as the plant matures, small flowers appear.

PLANTING Sugarcane cuttings are planted in fields by workers or mechanical planters. In order for the cane to grow, the seeds must be planted in well-drained soil. Typical cane soil is made of a mixture of silt, sand, clay particles and organic matter. Canes are spaced at least 4-feet apart and lined in rows and covered with soil. Fertilizers are applied from the time of planting up until the beginning of the ripening period. Cane fields are also routinely weeded to provide for optimum growth of the cane. Depending on the region where the crop is planted, cane seasons last from 8-22 months. In the United States, sugarcane is grown in Florida, Hawaii, Louisiana and Texas. Islamia University Bahawalpur


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COLLECTING THE HARVEST Mature canes are gathered by a combination of manual and mechanical methods. Canes are cut at ground level, its leaves are removed and the top is trimmed off by cutting off the last mature joint. Cane is then placed into large piles and picked up, tied, and transported to a sugar factory.

CLEANSING AND GRINDING Stalks are thoroughly washed and cut when reaching the sugar mill. After the cleaning process, a machine led by a series of rotating knives, shreds the cane into pieces. This is known as "grinding." During grinding, hot water is sprayed on to the sugarcane to dissolve any remaining hard sugar. The smaller pieces of cane are then spread out on a conveyer belt.

JUICING The shredded pieces of sugarcane travel on the conveyer belt through a series of heavy-duty rollers, which extract juice from the pulp. The pulp that remains or "bagasse" is dried and used as fuel. The raw juice moves on through the mill to be clarified.

CLARIFYING

Carbon dioxide and the milk of a lime are added to the liquid sugar mixture and it is heated to the boiling point, as the process pr ocess of clarifying begins. As the carbon dioxide travels through the liquid it forms calcium carbonate, which attracts nonsugar debris (fats, gums, and wax) from the juice, and pulls them away from the sugar juice. The juice is then pushed through a series of filters to remove any remaining impurities.

EVAPORATION The clear juice which results from the clarifying process is put under a vacuum, where the juice boils at a low temperature and begins to evaporate. It is heated until it forms into a thick, brown syrup.



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CRYSTALLIZATION By evaporating what little water is left in the sugar syrup, crystallization takes place. Inside a sterilized vacuum pan, pulverized sugar is fed into the pan as the liquid evaporates, e vaporates, causing the formation of crystals. The remaining mixture is a thick mass of large crystals, which is sent to a centrifuge to spin and dry the crystals. The dried product is raw sugar, still inedible.

REFINERY Raw sugar is transported to a Cane Sugar Refinery for the removal molasses, minerals and other non-sugars, which still contaminate the sugar. This is known as the purification process. Raw sugar is mixed with a solution of sugar and water to loosen the molasses from the outside of the raw sugar crystals, producing a thick matter known as "magma." Large machines then spin the magma, which separate the molasses from the crystals. Crystals are promptly washed, dissolved and filtered to remove impurities. The golden syrup which is produced is then sent through filters to remove the color and water. What's left is a concentrated, clear syrup, which is again fed into a vacuum pan.

SEPARATION AND PACKAGING Once the final evaporation and drying process is done, screens scr eens separate the different sized sugar crystals. Large and small crystals are packaged and shipped, labeled as white, refined, sugar.

SUGAR FACTS REFINED white sugar is 99.9-percent sucrose. WHITE sugar is pure sucrose, containing no preservatives or additives.



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Process in diagram

List of Machinery •

•

•

•

•

•

•

•

•

Mill House E.O.T. Crane & Gantry Cane Unloaders, Table Feeders Cane Cutters, Cane Levellers & Kickers Cane Carriers, Intercarriers with Chains, Slats. Bagasse Elevators complete Headstocks, Crown Pinions, Scrappers, Trash Plates, Coupling Bagasse Baling Presses All Types of Chains, Slats. Rakes, Sprockets Power House Crane & Gantry Roller



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Requirement of Raw Material

Sugarcane

Sugar cane cane is our main raw material material we purchase purchase it from Sadiqabad Sadiqabad and Qusoor the recent purchase price of sugar cane is 230 rupee per mann but its price may vary in future.



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Chemicals

We also use chemicals as a raw material unless we cannot find the sugar in pure form we purchase purchase chemicals of rupees 100 100 per liter liter sugar sugar proces processin sing g chemic chemicals als are anti-s anti-scal calant ant sugar sugar proces processin sing g chemic chemicals als and carbonate based sugar processing chemicals sugar processing chemicals that includes microbiocides, microbiocides, defoamer chemicals and sugar colour treating chemicals. Also offers other chemicals like water treatment chemicals and effluent water treatment chemicals. chemicals.



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Personnel analysis discusses number of employees working in mill. It tells about total numbers of employees working either technical or nontechnical staff. Techni Technical cal analys analysis is shows shows that that there there one Genera Generall Manage Manager, r, one deputy deputy general manager, 6 manager are working in sugar mill. There is 1 chief chemist 1 chief engineers 6 assistants managers 10 supervisor clerical staff is consist of 20 people, 10 peons ,5 sweeper and 2 gate keepers.



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Financial statement Mamoon Suger Mill (Prt). Limited Limited Income Statement For the Year Ended Dec 31,_______________

2,01 For the Year ended operating efficiency assumed Sales

2,01

2,01

1

2

3

Rs. 4,995,68 6

Rs. 6,556,83 8

Rs. 6,947,12 6

1,613,20

1,714,47

1,815,87

Cost of good Sold:. Raw material consumed

0

5 10,23

Labour

8

1 80,86

Manufacturing expense

7

Depreciation

5

7

9

84,97 2

313,88 5

2,018,18 9

12,38

82,91

313,88

Cost Of Goods Manufactured

0 11,26

313,88 5

2,122,54 0

2,227,11 4

302,72 Add: Beginning Inventory Less: Ending Inv.

0 302,72 15%

8

8 1

1

7

8

6

334,06

2,106,88

3,280,22 Gross Profit

1 318,38

1,715,46

Cost of Goods Sold :

318,38

2,211,42 8

4,449,95 1

4,735,69 9

Operating Expenses 5,00 General and Admin. Expenses

3

5,50 4

1,76 Selling Expenses

0

1,93 6

6,76 Total Operating Expenses

3

0

0

2

2,13

7,44

3,273,46 Operating Profit

6,05 4

8,18 4

4,442,51 1

4,727,51 5

Other Income Sale of Wastge /Electricty

Total Other Income Profit before Non-Oprating Expenses


2

40000

44000

48400

40000 3,313,46

44000 4,486,51

48400 4,775,91

1


5

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Non-Operating Expenses 105,92 Financial Exp.

362,23

4

7 26

Amortization of preproduction exp.

26

5

5 163,67

Workers Participation fund (5%)

6 65,46

9

Total Non-operating Exp.

2

0 673,47

2,978,13

607,52 5

3,813,03 3

1,191,25

4,168,39 0

1,525,21

2

3 1,786,87

Net Profit after Tax

94,55 0

8

1

Tax

6 88,85

335,33

Net Profit before Tax

265 236,37

222,12

3

Workers Welfare Fund (2%)

276,33 4

1,667,35 6

2,287,82

8

0

2,501,03 4

Mamoon Suger Mill Mill (Prt). Limited Limited Projected Balance Sheet As On 31 Dec,_______________ As on

2010 Rs.

2011 Rs.

2012 Rs.

2013 Rs.

Owners Equity & Liabilities Capital & reserves: Capital

1,746,000

1,746,000

1,746,000

1,746,000

0

1,786, 1,786,878 878

4,074, 4,074,698 698

6,575, 6,575,733 733

1,746,000

3, 3,532,878

5,820,698

8,321,733

2,619,000

2,095,200

1,571,400

1,047,600

Sub Total

2,619,000

2, 2,095,200

1,571,400

1,047,600

Total Debt & Equity

4,365,000

5,628,078

7,392,098

9,369,332

26,086

322,640

342,895

363,174

Notes Payable

96,792

102,869

108,952

short term Loans @ 75%

749,353

983,526

1,042,069

Workers Participation fund (5%)

163,673

222,126

236,376

0

65,469 65,469

88,850 88,850

94,550 94,550

0

399,65 399,655 5

566,51 566,511 1

615,25 615,254 4

261,900

523,800

523,800

0

0

Retain Retained ed earnin earning g Sub Total Long Term Liabilities The bank of Punjab loan

Current liabilities Account Payable 20% of Material Used

Worker Workers s Welfar Welfare e Fund Fund (2%) (2%) Accrud Accrude e expens expense e Current Maturity of Loan tax payable


0


0

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sub total Total Equity & Liabilities

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26,086

2,059,482

2,830,576

2,984,175

4,391,086

7,687,560

10,222,674

12,353,507

4,184,959

4,184,959

3,871,074

3,557,190

313,885

313,885

313,885

3,871,074

3,557,190

3,243,305

Assets Fixed Assets Fixed Assets Less:Acc. Dep.

-

Net Fixed Assets

4,184,959

Pre-Production Exp.

1,061

Less Less Amor Amorti tize zed d

1,061

796

530

265 265

265 265

265 265

1,061

796

530

265

4,186,020

3,871,870

3,557,720

3,243,571

78,657

1,937,998

4,422,880

6,737,474

22,200

999,137

1,311,368

1,389,425

0

Net Pre-Production Exp. Sub total Current Assets Cash Account Receivable

20%

Inventory

86,953

Packaging materials 10% Finished Goods Inventory 15% of Production

695

696

697

2,560

161,320

171,448

181,587

2,220

302,728

318,381

33 334,067

Stores & Spares

2,920

403,300

428,619

453,968

Marketable Securities

9,556

10,512

11,563

12,719

205,066

3,815,690

6,664,954

9,109,937

4,391,086

7,687,560

10,222,674

12,353,507

sub total Total Assets

Mamoon Suger Mill Mill (Prt). Limited Limited Projected Cash Flow Statement Islamia University Bahawalpur


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semester 4

For The Year Ended Dec 31,______

For the Year Ended

2010 Rs.

2011 Rs.

2012 Rs,

2013 Rs.

Sources 3,273,46 Oprating Profit

0

2

4,442,51 1

314,15 Add:Dep. & Amort. Equity

0 1,746,00

0

4,727,51 5

314,15 0

314,15 0

0

Other Sources 2,619,00 Long Term Loans

0 26,08

Inc/(dec) in Current Liabilities

6

2,033,39 6

4,391,08 6

Total Sources

771,09 4

153,59 9

5,621,00 9

5,527,75 5

5,195,26 4

265 261,90

265 523,80

265 523,80

Uses 4,184,95 Fixed Asset

9

Pre-Production Exp.

1

1,06

Long Term Loans

0

Re-Payment of:.

0

0

0 105,92

Financial Exp.

0

4

362,23 7

163,67 Workers Participation fund (5%) Workers Welfare Fund (2%)

3 65,46

Profit Distribute Inc/(dec) in Current asset

9

7

Balance Opening Balance Closing


0 78,65 7

236,37 6

88,85

94,55 0

1,525,21 3

0 1,751,28 4

4,312,42 9 78,65

Total Net Cash Inflow/(Outflow) Inflow/(Outflow)

2

0 126,40

4

0 1,191,25

0

276,33

222,12 6

9

Tax Paid

0

1,667,35 6

0 364,38 1

0 130,38 9

3,761,66 8

3,042,87 2

2,880,67 0

1,859,341

2,484,882

2,314,594

78,657

1,937,998

4,422,880

1,937,998

4,422,880

6,737,474


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semester 4

Cost Of Land Mamoon Shugar Mill Kanals Land

Marlas 400

Cost per marla

8000

Cost of Registration

1.00%

Stamp Duty of Cost of Land 2%

2.00%

comitte fee

1.00%

CVT Development Charges of Cost of Land

4.00%

55,000

2.00%

Total

Cost Of Building & Civil Works Factory Building

Area Sq ft.

Cost Per Sq. Ft

Cost

GM Office

600

700

420,000

Account Manager

600

700

420,000

Financial Manager

600

700

420,000

Chemical manager

600

700

420,000

production manager

600

700

420,000

purchase manager

600

700

420,000

labour room

1,000

500

500,000

ware house

40,000

350

14,000,000

guest room

800

700

560,000

boundry wall (ft)

1,922,600

Shade & Structure

208,000

100

192,260,000

80

16,640,000

Total

226,480,000

electricity (internal)

9,000,000

Fee of Civil Civil Contra Contractu cture re

4.50% 4.50%

Total Total Cost

10,191 10,191,60 ,600 0 19,191,600

2,176,000


245,671,600


Total Cost Rs. 440,000,00 0 4,400,00 0 8,800,00 0 4,400,00 0 17,600,00 0 8,800,00 0 484,000,00 0

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semester 4

Machinery Requried Capicit y

Item Machinery Requried

1

Cost 2,850,000,00 0

Total Cost

Inst Instal alla lati tion on Char Charge ges s of Mach Machin iner ery y

2,850,000,000 150, 150,00 000, 0,00 000 0

Total

3,000,000,000

Other Machinary Requirement Electric Generator

600 KVA

1

2,000,00 0

2,000,000

Total

2,000,000

Total Local Machinary

3,002,000,000

Furniture and Fixture Description Tables Revolving Chairs Chairs/plastic Total


qty 15 10 80

Cost/qt y 8,000 5,000 1,000

Total 120,000 50,000 80,000 250,000


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semester 4

Office Equipment Item 1 5 1 0

Computer HP AC Split Printers

4

Scaners

2

Fax Machine

2

Photocopier

Cost/Item 45,00 0 35,00 0 12,50 0 5,50 0 12,00 0 75,00 0

1

Total 675,00 0 350,00 0 50,00 0 11,00 0 24,00 0 75,00 0 1,185,00 0

Cost of Vehcials

Name Of Vechial

No. of Vechial

Cost per vechial

Toyota GLI Second Hand

1

1,500,000

Mehran

7

350,000

Buses

2

1,350,000

10

600,000

3

370,000

Shezhore Trucks Bolan

Total cost 1,500,00 0 2,450,00 0 2,700,00 0 6,000,00 0 1,110,00 0 13,760,00

Total


0


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semester 4

Mamoon Suger Mill (Prt). Limited ESTIMATED INITIAL NETWORKING CAPITAL

CURRENT ASSETS

Rs.

Cash Account Receivable

78,657,000 20%

22,200,000

Inventory

86,952,500

Packaging materials 10%

2,560,000

Finished Goods Inventory 15% of Production

2,220,000

Stores & Spares

2,920,000

Marketable Securities

9,556,000 Total

205,065,500

CURRENT LIABILITIES Account Payable 20% of Material Used

26,085,750 -

Total Current Liabilities

Total

INITIAL NET WORKING CAPITAL


26,085,750 178,979,750


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semester 4

PRE-PRODUCTION EXPENSES

Project examination fee

0.50%

13,095

Legal Documentation fee

0.25%

6, 6,547

Commitment Charges

1.50%

39,285

Travelling and Other Mix Expenses on constraction

500,688

WAPDA

500,000

Office, Fuel, Telephone, Fax, Networking System,Entertainment System,Entertainment & other Misc. Exp. Total Pre-Production Exp.

1,060,991

Salaries

a) Administrative Salaries

Nos

Salary

Annual

per Month

Cost

(Rs.)

(000)

GM

1

80,000

80,000

DGM

1

65,000

65,000

Managers

6

45,000

270,000

Chief Chiemst

1

40,000

40,000

Chief Engieener

1

40,000

40,000

Assistant Managers

6

30,000

180,000

Supervisors

10

15,000

150,000

Clarical Staff

20

14,000

280,000

peons

10

8,500

85,000

Sweepers

5

6,500

32,500

Gatekeeper

2

6,500

13,000


1,375


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semester 4

We visited our nearest sugar mill named Ashraf sugar mills on 11 may 2010 at 10:00 am. Where Where we meet with Muhammad Altaf he is a controller Finance in sugar mill. He gave all the necessary information’s regarding to our project. He also visited us the machinery of sugar mill. th

.



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semester 4

M.com Finance


•

Al-Humra Furniture Works, Bahawalpur.

•

Saeed Computer’s, Bahawalpur.

•

semester 4

Noor’s High Tec Computer’s, Bahawalpur.

•

Grace Computer’s, Bahawalpur.

•

Khan Computer’s, Bahawalpur.

•

Gayass Electronics, Bahawalpur.

•

Adnan & Co. Bahawalpur.

•

th

New National Electronics, Bahawalpur.

•

Muhammad yaseen Apna Home Designer, Bahawalpur.

•

Dubai Copier & Fax Machine, D.I.G Chowk, Bahawalpur.

•

Google.com

•

The Bank Of Punjab

•

Muhammad Altaf Controller Finance Ashraf Sugar Mills Bahawalpur.

•

Heavy Mechanical Complex (HMC)



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semester 4

Sugar Mill

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