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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.

) Ltd

By Islamian Business Executives 1


A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

In the Name of Allah,


The Most Beneficent,
The Most Merciful.
Read:
In the Name of your Lord
Who Created, Created Man from a Clot.
Read:
And your Lord is the most Bounteous,
Who taught by the pen,
The man that which he did not Know

Al-Quran

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“ALLAH DOES NOT LOOK AT


YOUR FORMS AND POSSESSIONS
BUT HE LOOKS AT YOUR
HEART AND DEEDS”

(MUSLIM)

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DEDICATED TO ALLAH

The Almighty

The Omniscient

The Omnipotent

The Omnipresent

The creator of creative mind.

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

Submitted To:
Mr. JAVED IQBAL

Submitted By:
Group # 1
Roll no.
Mr. Sajjad Hussain 24
Mr. Zahid Ghafoor 36
Mr. Faisal Rashid 12

PREFACE

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Department Of COMMERCE has always tried to make its students be familiar

with the different techniques in the field of Project Appraisal in order that they

can understand & present the concepts of Project Appraisal in the light of

present-day progress & development.

The importance of principal work almost exists in every professional field.

Practical knowledge makes man a technical person who enables to do every

work promptly regarding his profession. The very distinctive feature of the

degree of MASTER OF COMMERCE is that it stresses more on the practical

aspects of study. Our teachers have extremely realized this importance & they

use all the tact’s to expose us to the real field circumstances.

Project Appraisal has become a common phenomenon now-a-days. We have

also endeavored to consolidate in this assignment all the important features of

the topic. Every effort has been made to incorporate all the available means of

information to make this assignment exhaustive & comprehensive. We tried our

best to accomplish our work with honesty and diligence.

Mr. Sajjad Hussain


Mr. Zahid Ghafoor
Mr. Faisal Rashid

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Acknowledgement

 Special thanks to Almighty Allah, creator of the creative minds.

 We pay abundant thanks to our encouraging teacher & instructor


Mr. Javed Iqbal Chairman Department of Commerce for enlightens
our minds with the rich information about the topic.

SPECIAL THANKS

 Mr. Arshad Javed, Arshad Chudhary & Management of Asia Ghee


Mills Pvt. Ltd. Ahmed pur Road Bahawalpur.
 Bahawalpur State Agency Bahawalpur.
 District Govt. building department Saddar Pulli Bahawalpur.
 MEPCO Office

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OIL PLANT

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Table OF Contents

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Page
Sr. No Particulars
No.

1 Executive Summery 12
Introduction & Estimated Cost of the
2 17
Project
Name of Machinery Supplier
3 18
Implementation Schedule
4 19
Management
5 20
Sponsors
6 21
Introduction to Industry
7 22
Market Analysis
8 24
Raw Material
9 26
Technical Analysis
10 28
SWOT Analysis & Financial Ratios
11 30
Manufacturing Process
12 31
Economic Analysis
13 45
Financial Statements
14 46
Visits Highlights
15 68
Conclusion & recommendation
16 69

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Page
Sr. No Particulars
No.

1 Cost of Land 46
Cost of Civil Work
2 47
Cost of Plant & Machinery
3 48
Estimated Cost of project
4 49
Pre-Production expense
5 50
Initial Working Capital
6 50
Production at 100% capacity
7 51
Raw Material Requirement
8 52
Cost of Labor
9 53
Manufacturing over head
10 55
Admin, General and Selling Expense
11 56
Depreciation
12 58
Unit of Production and Sale
13 59
Load Re payment schedule
14 61
Estimated Income Statement
15 62
Estimated Balance Sheet
16 64
Estimated Cash flow statement
17 66
WACC & IRR & Payback Period
18 67

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EXECUTIVE SUMMERY

1. The project
NAIMAT Oil & Ghee Mills is a manufacturing plant proposed to set up near Ahmad pur East,
Karachi road Bahawalpur. The proposed project site enjoys the benefits of easy availability of
raw material, quick access to the markets of Pakistan as it is located on the main road, source
of power and electricity & transportation. The project will be equipped with most locally
manufactured plant and machinery and rest of equipment will be imported from China.
2. Location
The proposed project contemplates to set up a new Oil & Ghee Mills 2 km from Ahmedpur
East. The proposed project site enjoys the benefits of 1) easy availability of raw material, 2)
quick access to main road, 3) sources of power, water, fuel etc., 4) availability of Transport
and modern Communication systems, 5) availability of Skilled and Un-Skilled labor, and 6)
free from environmental hazards like water logging and salinity and floods.

3. COMPANY ADDRESS
SITE EDDRESS
2 km from Ahmed pur East at National Highway.
4. Product’s Range
A. Cooking OIL
B. Vegetable Ghee
C. Laundry Soap
Cooking will be in the packaging of 1 kg, 2.5 kg and 5 kg and Vegetable Ghee will be in the
packaging of ½ kg, 1 kg, 2.5 kg, 5 kg, 10 kg and 16 kg.
5. Market
Our site is centrally located in Pakistan from where we can easily get access to the markets
of the country. We have some competitors but its success and profitability is very much
related to its low cost and high quality. Oil and Ghee is basic ingredient of every meal so it

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has high demand locally and nationally. Oil and ghee are also exported to Afghanistan and
Central Asian countries.

6. Plant capacity
The 100% capacity of plant is 150 Tons per day, of which 50 Tons would be the production
of cooking oil and 100 Tons of Vegetable Ghee. We will start production from 60% capacity
and will be increased 10% every year.

7. Material and input

The basic raw material required for producing cooking oil is Canola oil which will be
imported from Canada and Palm Olein oil for ghee will be imported from Malaysia. Other
inputs like Caustic Soda, Bleaching Earth, Common Salt, Antioxidant, Citric Acid, and
Nickel Catalyst are available in Pakistan.
8. Project Engineering
The plant and machinery used for production consist of Storage Section, Pre-Refining
Section, Hydrogenation Section, Post-Refining Section, Ghee Filling Section, Refrigeration
Section, Steam Generation, Soap Section, Water Pump Section, Hydrogen Gas Generation &
Storage Section, Electric Section, Mechanical workshop.
9. Man Power
Mainly three types of man power is required, production labor consist of 21 skilled, 24 semi
skilled and 32 unskilled and 25 Admin staff that includes skilled workers, chowkidar and
peon.

10. Implementation:

The total time period for the installation & execution of output is estimated to be 6 months
from the date of approval of finance.

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11. Estimated Cost: Rs.

Total fixed cost of project 327,602

+ Initial permanent working capital 790,091.18

Total cost of Project 1,117,693

12. Financial analysis/means of financing:

Sixty percent of estimated cost of the proposed project will be obtained through loan and
remaining 40% will be contributed by the owner.
Rs. (000)
Debt 670,615.95

Equity 447,077.30

Debt equity Ratio

60%: 40%
13. Financial Assistance:

Rs. 670,615.95 will be obtained from Muslim Commercial bank limited Bahawalpur at 16% per
annum
14. Estimated operating Results:

ITEMS 2011 2012 2013


Rs.000 Rs.000 Rs.000
Sales
2,868,413 3,633,323 4,187,882
Gross profit 1,114,181 2,156,535 2,441,263

Operating profit 1,046,095 2,072,078


2,344,536

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Net profit 486,229 1,064,715


1,222,734

15. Financial Position:


(Rs.000)

ITEMS 2011 2012 2013


Current Assets 2,708,657 4,901,208 7,034,783
Fixed Assets 293,180 293,180
293,180
Intangibles 0 0 0

16. Financial Ratios:


(Rs.000)
ITEMS 2011 2012 2013
Current Ratio 2.23 2.79 3.34
Quick Ratio 1.95 2.50 3.03
Debt Ratio % 58% 44% 35%
Gross Profit Ratio% 39% 34% 33%
Operating profit % 39% 34% 33%
Net Profit Ratio% 17% 15% 15%

Financial Indicators

Project cost IFRR WACC


56% 9.84%

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Machinery Suppliers
New Chaudhary agricultural and mechanical engineers
Multan Pakistan
Company Name: New Chaudhary Agricultural Mechanical Engineers
Street Address: Chowk Bwp, Muzaffar Garh Road
City: Multan
Province/State: Punjab
Country/Region: Pakistan
Zip: 60000
Telephone: 092-061-6527607
Mobile Phone: 09203008737610
Fax: 092-061-6529693 & 092-061-4233706
Website: http://www.newcame.com

THE PROJECT INTRODUCTION


The proposed project contemplates to set up a new Oil & Ghee Mill Unit at Karachi Road
near4 Ahmadpur East The annual rated production capacity of the plant is estimated about 150
ton of which 5o ton oil and 100 ton ghee working 350 days a year and tripled shift per day of 8

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hours each. The project shall be equipped with latest locally manufacturing plant and
Machinery.

Estimated Cost of the Project (Rs. 000)


Total Fixed Cost
327,602
Initial Fixed Working Capital
790,091.18

Total
1,117,693

Means of Finance
The Cost of the Project is proposed to be financed by Debt and Equity in the ratios of
60: 40 respectively.
Equity 447,077.30
Debt 670,615.95

Total 1,117,693.25

TERMS AND CONDITIONS:

1. Proposed name of the project need to be mentioned.


2. Sponsors contribution will be 40% of the total cost of the project.
3. The amount of the loan will be deposited into the joint account with The

Muslim Commercial Bank.


4. Land will be purchased and transferred to the company name.
5. Land will be pledged with the Muslim Commercial bank as security.

6. Final Contract with material, machinery, suppliers and Civil Work need to

be disclosed to the Loan Sanctioning Bank. (MCB)

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7. Loan is to be repaid in 10 equal annual installments to the Muslim

Commercial Bank.
8. For further financial assistance approval from Muslim Commercial bank is

necessary.
9. Accessories and utilities will be arranged as per the contract by the contract
of civil work himself.
Name of Machinery Supplier

New Chaudhary agricultural and mechanical engineers


Multan Pakistan

Company Name: New Chaudhary Agricultural Mechanical Engineers

Street Address: Chowk Bwp, Muzaffar Garh Road

City: Multan

Province/State: Punjab

Country/Region: Pakistan

Zip: 60000

Telephone: 092-061-6527607

Mobile Phone: 09203008737610

Fax: 092-061-6529693 & 092-061-4233706

Website: http://www.newcame.com

NAIMAT Oil & Ghee Mills

IMPLEMENTATION SCHEDULE

S.NO. ACTIVITIES MONTH YEAR

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1 Acquiring of Land & leveling Start 1st Jan 2010

Complete 30th Jan 2010

2 Start 2nd Feb 2010


Engineering studies and designing of
civil work Complete 10th Mar 2010

4 Order for local machinery 15th Sep 2010

5 Construction of building and civil work Start 1st Apr 2010

Complete 30th Sep 2010

6 Arrival of local machinery at site 15th Oct 2010

7 Erection and installation of machinery Start 20th Oct 2010

Complete 30th Nov 2010

8 Order for raw materials 20th Nov 2010

9 Trial run Start 10th Dec 2010

Complete 25th Dec 2010

10 Start of commercial production 1st Jan 2011

Management
The overall management and control of the firm will be actively managed by its active
partners who will actively participate in management decisions and control the affairs
of the firm.

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Partners Name Designation


1. Mr. Javed Hussain Managing Director

2. Mr. Faisal Rashid General Manager

4. Mr. Zahid Ghafoor Production Manager

5. Mr. Sajjad Karim khan Finance Manager

The partners will contribute equally in the equity of the project and will equally participate in
the profit and loss of the firm's business.

Sponsors

The sponsors of the project are professionally qualified and have valuable and extensive
experience of business management in industrial fields. They have got good trading contacts

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and market reputation in the industry... The sponsors experience would assist the firm in its
smooth and profitable operations.
The sponsors are financially sound and capable to contribute their part of equity in the
proposed project.
The Sponsors detail is as under:-

1. Name : Mr. JAVED HUSSAIN


Address : Bahawalpur.
Qualification : MBA
Experience : 10 years

2. Name : Mr. FAISAL RASHID


Address : Khair Pur Tamewali Bahawalpur
Qualification : M.COM (Finance)
Experience : 2 years

3. Name : Mr. ZAHID GHAFOOR


Address : Alipur Distt. Muzaffar Garh
Qualification : M.COM (Finance)
Experience : 2 years

4. Name : Mr. SAJJAD KARIM KHAN


Address : Uch Sharif Tehsil Ahmedpur East Distt. Bahawalpur
Qualification : M.COM (Finance)
Experience : 2 years

Introduction to Industry

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The manufacture of Vegetable Ghee/ Cooking Oil in the organized sector contributing around
Rs.30 billion annually to the government exchequer in the form of Custom Duty, Federal
Excise Duty and Income Tax etc. Ghee & Oil Units are not only catering to the needs of
Pakistan’s whole population, but also supplying this dietary item of daily use to the people of
neighboring countries. The export of the Vegetable Ghee to Afghanistan and the Central Asian
States via land route through Torkhum and Chamman borders is a good source to earn
precious foreign exchange for our country. In addition of boosting trade relations with these
countries that’s why the future of this industry is bright in Pakistan.

Industry Background and History

Ghee industry was introduced in the sub continent in mid thirties, and since then it has grown
tremendously in face of all environmental hazards. It has been subjected to serious edible Oil
shortages, government inconsistent policies and severe variations between demand and supply
in the domestic market.
There are about 150 units of edible oil and oil extraction in Pakistan, involved in extraction
and production of various types of cooking oil and ghee. However, the number of ghee
manufacturer's registered with PVMA at present are 95.
The country which was self sufficient in edible Oil production (0.154 million MT), till 1960,
and paying not a single dollar against the import bill, is today importing well over 1.160
million MT against an import bill of no less that Rs.33000 million per year, being the third
largest edible Oil importing country of the world, after China and the European Union. All
these imports originated from Malaysia.

During the past 21 years of interrupted and partially half hearted efforts of successive
governments since 1979, the country has been able to procure only 0.5 million MT of edible
Oil from indigenous resources while the rest of the 1.1 million MT is procured from imports.

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The share of ghee & cooking oil in large scale manufacturing is 7.4 percent. During the last
seven years (FY01-07) the average annual growth for ghee/edible oil production is about
seven percent

The structure of Ghee/Oil industry is just like all the other developing industries of Pakistan.
There are certain well-established companies working with good brand names, serving the
nation as a whole. Along with them there are certain units, which are working in limited areas,
meeting the requirements of these niche markets. Some of the vegetable Ghee mills are
working under the control of government and other are held privately.

The raw material required for the production of Ghee/Oil is imported from different countries
and this is the biggest imported item in food category. The prices of Ghee/Oil are very much
influenced by the duties on these imports and the international price fluctuations of these
items.

In early 1990’s there had been a serious crisis in the Ghee industry, and the main reason for
this was that production of Ghee was greater than the demand. In this period due to the heavy
looses on account of these units government privatize so many Ghee producing units.

Vegetable Ghee is the commercial term for vegetable Oil hardened by the process of
hydrogenation. Cottonseed, soybean Oil, Sun Flower Oil, corn Oil, is being mainly used in
Pakistan for the manufacturing of Oil/Ghee. Pakistan is importing Palm Oil and Soya bean Oil
from America, Indonesia and Malaysia. During 1999-2000 Pakistan imports of soya bean Oil
and palm Oil has drastically decreased both in quantity and value. Pakistan imported soya
bean Oil worth $75.8 million and Palm Oil $267.8 million in year 1999-2000.

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Market Analysis
Pakistan is the third largest importer of edible oil as only around 27.0 percent of its
requirement is met through domestic production. Pakistan: Per Kg Consumption of Vegetable
Ghee Per Annum Is Lower Than EU, USA and Russia But Is Above India and Bangladesh
(18.86 Kg per Annum per Person)

The remaining needs are met from imports of various edible oils. The ghee and cooking oil are
the basic food items of human diet all over the world. With the passage of time the overall
production as well as consumption of ghee & cooking oil has significantly increased in
Pakistan

Competitors

In Pakistan ghee industry is flourished over the years. Today there are many Locals and
National companies as well as international companies engage in the production of ghee and
oil working in Pakistan.

Among multinational companies includes Lever Brothers (Pvt.) Ltd. They manufacture
DALDA and PLANTA cooking oil and ghee. Some other companies are as follows.

1) Al Hilal Vegetable Ghee Mills engages in the production of Sultan Banaspati Ghee. It is
situated in Multan.
2) Shahbaz Ghee Mills is engage in the production of Shahbaz Banaspati. It is situated in
Rahim Yar Khan.
3) Wazeer Ali Industries Ltd. engages in the production of Tallo Banaspati ghee and cooking
oil. It is situated in Hyderabad.
4) Fatima Enterprises Ltd.

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5) Rafhan Maize Product Company involved in the production of Rafhan Corn Oil and it is
situated in Faislabad.
6) Ahmad Food Industries manufactures Ahmad Soya bean Oil.
7) Ghee Corporation of Pakistan (G.C.P) under which 26 units engaged in the production of
ghee is working all over the country.
Apart from these combines there are many other firms manufacturing ghee. Now Brothers
ghee and Oil Mill is entering in the market.

Raw material:
The basic raw material required for producing cooking oil and vegetable ghee is Canola oil,
Palm oil and Palm alien. These raw materials are not locally available; they would be imported
from Canada and Malaysia. There are some other input materials which are necessary for

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production but they are available in Pakistan. List of raw materials and their prices are listed
below.
Cooking Oil
Raw Material
Quantity Price Rs (000)
Canola Oil (Tons) 17500 86000/Ton
Caustic Soda (Kg) 102000 25/kg
Fuller Earth (Kg) 204000 30/kg
Common Salt (Kg) 26000 3/kg
Antioxidants (Kg) 3400 160/kg

Vegetable Ghee

Raw Material
Quantity Price Rs (000)

RBD Palm Olein Oil (Tons) 32,000 75000/ton


Caustic Soda (Kg) 75,000 25/kg
Fuller Earth (Kg) 67,000 30/kg
Common Salt (Kg) 50,000 3/kg
Citric Acid (Kg) 7000 120/kg
Nickel Catalyst (Kg) 5000 1400/kg

Project demand, Products and product mix:

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The main products of the company are cooking oil and vegetable ghee and by-products will be
laundry soap and carbon dioxide gas. At 100% capacity, annual production of cooking oil will
be 17500 Tons, vegetable ghee 32000 Tons and Laundry soap 1050 Tons.

TECHNICAL ANALYSIS

Location of the Project

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The project is proposed to set up at Karachi Road near Ahmadpur East. The site enjoys the
following advantages:-
- Easy availability of raw material
- Access to the main road, Sources of Power, water, fuel etc.
- Availability of transport & communication like telephone, Internet etc.
- Availability of skilled and Un-Skilled manpower
- Free from other environmental hazards like water logging, floods, salinity etc.

Utilities
Main utilities required for project are gas, electricity, water, and transportation and disposal
arrangement.
Gas
Gas is very important for our project because our production process needs steam. And
hydrogen gas. So we have planned to get commercial connection of gas from Sui northern gas
pipelines limited, main line of gas is 1.5 km away from the proposed site
Electricity
Machinery can not work without power, so power is like blood for project; we have planned to
get connection of power from MEPCO.
Water
Water is needed during the process we will get water through water pumps.

Disposal

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Safe Disposal arrangement is very important for a project which has wastage contains
chemicals that can harm. We will dispose off after some treatment. We have site near cannel
so it is very easy to dispose off treated wastage.
Transportation
Our proposed site is just 0.25 km away from national high way which gives us opportunities to
use road ways for carriage, besides road ways we have railway junction just 5 km away from
site, Dera Nawab. So we will enjoy a best infrastructure here.

SWOT ANALYSIS
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Strength:
 Raw material is easily available
 Access to customers
 Well technology is used
 Demand is very high
 Profit earning is high
Weakness:
 Recourses are going to be end
 Security problem
 Government restriction
 Load shedding of sui gas & electricity
Threat
The proposed project will be facing the following threat:

 Market saturation over a longer period of time due to a large number of entrants
 Threat of increase in the import duty by the government

Gross Profit Ratio 39% 34% 33%


Operating Profit Ratio 39% 34% 33%
Net Profit Ratio 17% 15% 15%

Ratios 1 2 3 4
Current Ratio 1.43 2.23 2.79 3.34
Quick Ratio 1.24 1.95 2.50 3.03
Debt Ratio 84% 58% 44% 35%
Total Assets Turnover 0 25% 25% 20%
Return on Equity 52% 37% 30%
Return on Assets 4% 4% 3%

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Manufacturing Process

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In our proposed project we will produce three elements


1. Cooking Oil
2. Vegetable Ghee
3. Laundry Soap

Process has following stages:


A) Decantation
Decantation is a process of unloading of unprocessed oil from carriage into decanting tanks.
We will have proposed a 50 ton decanting tank.

B) Oil Storage
The next step is storage. Oil from decanting tanks is transformed from decanting to storage
tanks with the help of powerful pumps. Two storage tanks of 500 tons capacity are needed.

C) Refining

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The oil in refined to remove free from acids and phosphatides and the gaining material and to
improve its color. The oil is refined with strong Caustic Soda. This result in two products one
is the refined oil and the other is it’s by product namely mud which is being used for
manufacturing soap but the firm sells the mud it does not manufacture soap. We will produce
soap.

After Refining Process is divided in to three independent processes

OIL REFINING PLANT


MANUFACTURING PROCESS OF COOKING OIL

1. Bleaching
In this step we decolorize the oil by using Fuller Earth, Caustic Soda and Activated Carbon at
high temperature.
2. Filtration
In this step we remove impurities (Fuller Earth) from oil through filtration medium. All
impurities that become part of oil in Bleaching process are removed in this step.

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3. Deodorization
It is a process of purify the oil. Its odor is removed by using vacuum vessels. All those
impurities that are reason of odor in oil are removed in this section. The temperature of oil is
very much increase in this process.

4. Cooling
In the Deodorization Process temperature of oil much rises so it needs to cool again. In
Cooling Section oil is cooled to normal temperature by using coolers.
5. Filtration
To remove the impurities, oil is re filter through filtration process.

6. DE-Waxing

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It is a complex process that is used to remove Wax from oil. It is necessary to remove wax for
further processing. For this purpose some organic compounds are used in chemical reaction.
These reaction are much complex in nature. Samples are taken and laboratory tests are
applied.
7. Filtration & Vitamin Addition
De-waxed oil is passed through further filtration. Move over some essential Vitamins (A&D)
are added in this section. Nickel catalyst (Ni) is used in this process.

8. Storage
After final filtration and Vitamins addition oil is stored in storage tanks. In these tanks oil is
store at moderate temperature.

9. Packing

In packing section oil is packed in deferent weights plastic bags. These bags properly sealed
and again weigh before forward to store rooms.
10. Godown
After packing oil bags are forward to Godown. Ammonia section is there to control
temperature of Godown.

MANUFACTURING PROCESS OF VEGETABLE GHEE

1. Bleaching
In this step we decolorize the oil by using Fuller Earth, Caustic Soda and Activated Carbon at
high temperature.
2. Filtration

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In this step we remove impurities (Fuller Earth) from oil through filtration medium. All
impurities that become part of oil in Bleaching process are removed in this step.
3. Hydrogenation
Hydrogenation is process of addition of hydrogen gas in oil. It is a complex organic process in
which unsaturated hydrocarbon are convert into saturated hydrocarbons. It is main process of
converting oil into ghee. At high temperature hydrogen gas is passed into the oil, chemical
reaction occurs in presence of Nickel (Ni) catalysts.
4. Filtration
In this step we remove impurities (Fuller Earth) from ghee through filtration medium. All
impurities that become part of oil in Bleaching process and Hydrogenation process are
removed in this step.

5. post Refining
After hydrogenation oil is once again refined by using caustic soda in order to remove the
entire harmful chemicals that become part of oil during process.
6. Post Bleaching
After refining, once again bleaching is done in order to decrease the color of oil.
7. Filtration
To remove the impurities, ghee is re filter through filtration medium.
8. Deodorization
It is a process of purify the ghee. Its odor is removed by using vacuum vessels. All those
impurities that are reason of odor in ghee are removed in this section. The temperature of ghee
is very much increase in this process.
9. Cooling
In the Deodorization Process temperature of ghee much rises so it needs to cool again. In
Cooling Section ghee is cool down by using coolers.
10. Filtration & Vitamin Addition

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

For further filtration ghee must re heated. Move over some essential Vitamins (A&D) and
ghee flavors are added in this section.

11. Storage
After final filtration and Vitamins addition ghee is stored in storage tanks. In these tanks ghee
is store at high temperature.
12. Packing
In packing section ghee is packed in deferent weights plastic bags. These bags properly sealed
and again weigh before forward to store rooms. 0.5kg, 1kg, 2kg, 2.5kh, 5kg, 10kg, 16kg
packing is available. Plastic bags and steel teens are used for packing.

13. Chilling
Packed ghee is in melted form and hot. It is passed through chiller to decrease its temperature.
14. Godown
After packing ghee bags and teen packs are forward to Godown. Ammonia section is there to
control temperature of Godown.

MANUFACTURING PROCESS OF LAUNDRY SOAP

1. Soap Stock
In the process of refining, dirt is separated and sent to soap section for making laundry soap.
2. Saopnification Cooking
This is process of making soap from soap stock. Soap stock is heated and treated by using
some techniques.
3. Setting
Liquid is treated and soap in liquid form is made
4. Filling in Frames

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

Liquid is filled in frames to makes blocks of soap


5. Cutting into Cakes
Solid soap blocks are divided in small cubes.
6. Packing
Soap is packed in packets and cartons
7. Godown
Finished soap is sent to Godown and from Godown it is delivered to market.

DECANTATION

OIL STORAGE

REFINING

GHEE COOKING OIL SOAP

Bleaching
Soap Stock
Bleaching

Filtration
Saopnification
Filtration Cooking
Deodorization

Setting
Hydrogenation
Cooling
By Islamian Business Executives 47
A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

Filling in Frames
Filtration
Filtration

Post Refining Cutting into cakes


De- Waxing

Post Bleaching Packing


Filtration & Vitamin Add.

Godown
Filtration
Storage

Packing Dispatch
Deodorization

Godown
Cooling

Filtration & Vitamin Add. Dispatch

Storage

Packing

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

ECONOMIC ANALYSIS

Economic evaluation is considered prominent yardstick to measure the viability of a project.


This analysis is directed towards determining whether the project is likely to contribute
significantly to the development of the economy as a whole and the contribution of the project
would be great enough to justify the use of available resources. This aspect is reviewed under
the following:-

INITIAL IMPACT
In order to pursue a theory of balanced growth of the economy the current government is
putting an emphasis on industrialization of our inherently agrarian economy. Industrialization
of substantial dynamic benefits is important for changing the traditional structure of our less
developed economy, while providing employment for a rapidly increasing labor force, and
saving scarce foreign exchange by import substitution and creating export potentials.

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

A capital expenditure creates incomes for people engaged in the fabrication of capital goods,
who in turns spend their incomes on consumer goods. An initial original capital investment
creates a wave of income and spending which has multiplied effect on the national income,
increasing it by several times, the original investment. The initial original capital investment
of Rs. (000) 1,117,693.25 in local currencies would have a healthy impact on the GNP of the
country, the extent of which depends on the degree of multiplied effect.

EMPLOYMENT OPPORTUNITIES
The project would create employment opportunities for the following staff:
Detail Total Nos.
Skilled Labor 21
Semi-Skilled Labor 24
Unskilled Labor 32
Administrative Staff 25

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

NAIMAT OIL AND GHEE MILLS PVT. LTD.


Estimated Cost of the Land

Sr. Area in Unit Cost Total cost Rs.


no. Description Acers Rs. (000)

2,000,0
1 Land 5 00 10,000

Registration and Legal


2 Requirements 10% 5 1,000

3 Stamp Duty 2% 5 200

4 District Council Fee 1% 5 100

5 Development Charges of land 15% 5 1,500

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

Total Cost of Land 12,800

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

NAIMAT OIL AND GHEE MILLS PVT. LTD.

Estimated Cost of the Building and Civil Works

Description Type of Unit of Covered Rate per Amount Rs.


Sr.
Buildin Construction Area Unit (000)
No.
g
Refinery RCC Square Feet 7,500 700 5,250
1
Filling Section RCC Square Feet 11,000 700 7,700
2
Cold Room RCC Square Feet 12,000 675 8,100
3
Pouch Filling RCC Square Feet 1,600 675 1,080
4
Electric Room RCC Square Feet 1,500 675 1,012.5
5
HQ Compressor RCC Square Feet 1000 675 675
6
Ammonia RCC Square Feet 900 675 607.5
7 Condenser
Ammonia RCC Square Feet 900 675 607.5
8
Godown RCC Square Feet 4,500 650 2,925
9
Gas Plant RCC Square Feet 700 650 455
10
Mosque RCC Square Feet 450 700 315
11
Store RCC Square Feet 1200 700 840
12
Boiler Section RCC Square Feet 3,000 675 2,025
13
Soap Section RCC Square Feet 6,000 700 4,200
14
Boundary Wall & Runing Feet 3,000 400 1200
15 Gate
Office Block RCC Square Feet 12,000 750 9,000
16
Residential RCC Square Feet 13,000 750 9,750
17 Quarters
Guest Rooms RCC Square Feet 2,000 750 1,500
18
19 Uncovered Area Square Feet 132,000 25 3,300
Contingency 2% 1,210.85
20 (2%)
TOTAL COST 61,753.35

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

NAIMAT OIL & GHEE MILLS PVT LTD


Estimated Cost of Plant & Machinery
Rs.
S.NO. DESCRIPTION (000)
1 STORAGE SECTION 13,550
2 PRE-REFINING SECTION 6,110
3 HYDROGENATION SECTION 8,690
4 POST-REFINING SECTION 9,805
5 GHEE FILLING SECTION 8,650
6 REFRIGERATION SECTION 4,500
7 STEAM GENERATION 5,650
8 SOAP SECTION 1,595
9 WATER PUMP SECTION 1,150
10 HYDROGEN GAS GENERATION & STORAGE SECTION 9,950
11 CO2 GAS SECTION 2,800
12 ELECTRIC SECTION 10,700
13 MACHANICAL WORKSHOP 900
COST OF MACHINERY 84,050
14 ERECTION & INSTALLATION:15 % of machinery 15% 12,608
15 TRANSPORTATION (10% of Machinery) 10% 8,405
16 INSURANCE (5% of Machinery) 5% 4,203
17 Contingencies 2% of Building & Machinery 2% 1,681
TOTAL COST OF PLANT & MACHINERY 194,996

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

NAIMAT OIL AND GHEE MILLS PVT. LTD.


Estimated Cost of the Project

Cost of the Project Local Foreign Total


(Rs.000) (Rs.000) (Rs.000)
Project Land and it's Development 12,800 - 12,800
Building and Civil Works 61,753.35 - 61,753.35
Plant & Machinery 58,499 136,497 194,996
Furniture and Fixture 100 - 100
Utilities & Office Equipment 3,000 - 3,000
Vehicles 1,500 - 1,500
Markup during Construction 51,192 - 51,192
Pre Production Expenses 1,780 - 1,780
Contigencies 481 - 481

Total Fixed Cost 191,105 136,497.20 327,602


Initial Net Working Capital 790,091.18 - 790,091.18

Total Cost of the Project 981,196 136,497.20 1,117,693

Means of Finance
Debt
Loan from MCB 670,615.95 0 670,615.95
Total Debt 670,615.95 0 670,615.95
Equity
Paid up Capital (Sponsors 447,077.30 0 447,077.30
Total Equity 447,077.30 0 447,077.30

Total Debt and Equity 1,117,693.25 - 1,117,693.25


Debt : Equity Ratio
Sponsors stake 40%
Debt 60%

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

Estimated Initial Net Working Capital


Currnet Assets
RS.(000)
Cash 12000
Account Receivable 3 % of Sales 86052.375
Imported raw material 1200000

Raw Material 763083.5


Stores and Spares 5000

Advances and deposits 6000


Finished Goods Inventory 10% of production 318712.5
Total 2390848
Current Liabilities
Account Payable 0
Accrued Expenses 0
Bank Borrowing 75% of inventory 1600757
Total current liabilities 1600757
Initial Net Working Capital 790091
Total 2390848

NAIMAT OIL AND GHEE MILLS PVT. LTD.


PRE OPERATING EXPENSES
Sr. No. Description Rs. ("000")
1 Registration Charges 500
2 Sales Tax Registration Charges 120
3 Consultancy & Report Preparation Charges 100
4 Printing & Stationary 30
5 Conveyance Charges 100
6 Telephone & Postage 30
7 Salaries and Wages during Construction 900
Total Pre Operating Expenses 1,780

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

NAIMAT OIL AND GHEE MILLS PVT. LTD.


PRODUCTION AT 100%
COOKING OIL

Output% Quantiy (Tons)


Production of oil 97%
16975
Wastage 1%
175
Soap Stock dirt 2%
350
Total 100 17500
VEGETABLE GHEE
Ghee 95%
30400
Wastage 5% 1600
Soap Stock dirt 3%
960
Total 100 32000
LAUNDY SOAP
Soap 75%
1050
Wastage 25%
350
Total 100
1400

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

NAIMAT OIL AND GHEE MILLS PVT. LTD.


COST OF PRODUCTION
Raw Materials Requirement at100%
Cooking Oil
Canola Oil (Tons) 17,500
Caustic Soda (Kg) 102,000
Fuller Earth (Kg) 204,000
Common Salt (Kg) 26,000
Antioxidant (Kg) 3,400
Raw Material Purchase
Years. 2011 2012 2013
Capacity utilization 50% 60% 70%
QUANTITIES SCHEDULE
Canola Oil (Tons) 8,750 1,0500 1,2250
Caustic Soda (Kg) 51,000 61,200 7,1400
Fuller Earth (Kg) 102,000 122,400 142,800
Common Salt (Kg) 13,000 15,600 18,200
Antioxidant (Kg) 1,700 2,040 2,380
COST OF RAW MATERIAL RS(000) RS(000) RS(000)
Canola Oil per ton @RS. 86,000 752,500 903,000 1,053,500
Caustic Soda per Kg. @Rs. 25 1,275 1,530 1,785
Fuller Earth per Kg. @ Rs. 30 3,060 3,672 4,284
Common Salt per Kg. @ Rs. 3 39 46.8 54.6
Antioxidant per Kg. @Rs. 160 272 326.4 380.8
TOATL 757,146 908,575.2 106,0004.4
VEGETABLE GHEE
Raw Materials Requirement at100%
Palm Olein Oil (Tons) 32,000
Caustic Soda (Kg) 75,000
Fuller Earth (Kg) 67,000
Common Salt (Kg) 50,000
Citric Acid (Kg) 7,000
Nickle Catalyst (Kg) 5,000

Years. 2011 2012 2013


Capacity utilization 50% 60% 70%
QUANTITIES SCHEDULE
Palm Olein Oil (Tons) 16,000 19,200 22,400
Caustic Soda (Kg) 37,500 45,000 52,500
Fuller Earth (Kg) 33,500 40,200 46,900
Common Salt (Kg) 25,000 30,000 35,000
Citric Acid (Kg) 3,500 4,200 4,900

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

Nickle Catalyst (Kg) 2,500 3,000 3,500

COST OF RAW MATERIAL RS(000) RS(000) RS(000)


Palm Olein Oil per Ton @Rs. 75,000 1,200,000 1,440,000 1,680,000
Caustic Soda per Kg@ Rs. 25 937.5 1,125 1312.5
Fuller Earth per Kg@ Rs. 30 1,005 1,206 1,407
Common Salt per Kg@ Rs. 3 75 90 105
Citric Acid per Kg @ Rs. 120 420 504 588
Nickle Catalyst per Kg @Rs. 1400 3,500 4,200 4,900
TOATL 1,205,937.5 1,447,125 1,688,312.5
Total Cost of Raw Materials
(Grand Total) 1,963,083.5 2,355,700.2 2,748,316.9

Imported Raw material 1,200,000 1,440,000 1,680,000


Local Raw Material 763,083.5 915,700.2 1,068,316.9
ASSUMPTIONS
Production capacity per day 150 TONS
Working schedule 3 shifts of 8 hours each
working days in year 330

Bank Borrowing 70% of inventory 70%

NAIMAT OIL AND GHEE MILLS PVT. LTD.


Estimated Labor Cost

Year wise Wages of Labor RS.(000) RS.(000) RS.(000)


Sr.No.
Description 2011 2012 2013
1 Production Labor 8,244 9,068 9,975

2 Add fringe benefits 3,298 3,627 3,990

TOTAL COST OF LABOUR


11,542 12,696 13,965

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd
Labor Cost
Sr.No. Production Labor No. of Salary/month/worker Annual Salary RS.
Employees (000)
1 G.M Technical 1 50,000 600
2 Electrical Dept. -
Forman 1 10,000 120
Electricians 6 6,000 432
3 Boiler Section -
Boiler Engineer 1 25,000 300
Forman 3 10,000 360
Operator/Helper 9 6,000 648
4 Gas Plant -
Forman 1 10,000 120
Operator/Helper 6 6,000 432
5 Mechanical Workshop -
Forman 1 10,000 120
Fitter 3 6,000 216
Welder 1 8,000 96
Helper 3 6,000 216
6 Ghee Filling Section -
Forman 1 10,000 120
Operator 3 8,000 288
Helper 3 6,000 216
7 Ammonia Section -
Forman 1 10,000 120
Operator 3 8,000 288
Helper 3 6,000 216
8 Soap Section -
Forman 1 10,000 120
Operator 2 8,000 192
Helper 2 6,000 144
9 Main Storage -
Store In charge 1 10,000 120
Clerk 3 8,000 288
10 Laboratory -
Chief Chemist 1 20,000 240
Shift Chemist 3 15,000 540
Lab.Attendent 3 6,000 216
11 Refinery Section -
Supervisor 1 15,000 180
Forman 3 10,000 360
Operator 3 8,000 288
Helper 9 6,000 648
TOTAL EMPLOYEES 82
Total Cost Of Production Labor 8,244
By Islamian Business Executives
Assumptions: 60
Direct labor will increase every year @ 10%
FRINGE BENEFITS 40%
A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

NAIMAT OIL AND GHEE MILLS PVT. LTD.


Manufacturing Overhead Cost

Description (Rs:000)
Fixed cost
Insurance @ 5% of Fixed assets 5% 16,380
Overhauling Expense @ 5% of Machinery 5% 9,750
Maintenance of Building @ 5% of Cost of Building 5% 3,088
Maintenance of Vehicles @ 5% of Cost of Vehicle 5% 75
Total Fixed Cost 29,293
Variable Manufacturing Expenses
Power:(450KV*24hrs*330days*Rs12) * 50% 21,384
Gas (at 50% capacity) 15,000

Total Variable Cost 36,384


Year ending Manufacturing Overheads as per Different Capacities
Rs(000)
Description 2011 2012 2013
50% 60% 70%
Fixed cost 29,293 29,293 29,293
Variable cost 36,384 40,022 44,025

Total Cost of Manufacturing Overheads 65,677 69,315 73,317

Capacity Increases yearly 10%

NAIMAT OIL AND GHEE MILLS PVT. LTD.


Year wise Administrative and General Expenses
RS. RS. RS.
Administrative Expenses (000) (000) (000)

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

Sr. No. Designation No. of Salary/Mont 2,0 2,0 2,01


Employees h 11 12 3
GM Commercial 1 50,000 6 6 72
1 00 60 6
GM Accounts 1 50,000 6 6 72
2 00 60 6
Accountants 2 10,000 2 2 29
3 40 64 0
Clerks 10 8,000 9 1,0 1,16
4 60 56 2
Cashier 1 8,000 1 11
5 96 06 6
Assistants Cashier 2 6,000 1 1 17
6 44 58 4
Chowkidar/Gunman 6 6,000 4 4 52
7 32 75 3
Peon/Sweeper 2 6,000 1 1 17
8 44 58 4
Total 25 3,2 3,5 3,89
16 38 1
Add Fringe Benefits 0 1,2 1,4 1,55
86 15 7
Total 4,5 4,9 5,44
02 53 8
Assumption

Increase every 0
year

General Expenses RS.(000) RS.(000) RS.(000)


Sr.No Description 2,011 2,012 2,013
Per Month
1 Traveling Expenses 15,000 180 198 218
2 Printing & Stationary 20,000 240 264 290

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

3 Phone, Postage 15,000 180 198 218


4 Rent, Rate, & Taxes 100,000 1,200 1,320 1,452
5 Entertainment 10,000 120 132 145
6 Legal & Audit 200,000 2,400 2,640 2,904
7 Miscellaneous 10,000 120 132 145
Total 4,440 4,884 5,372
Add Fringe Benefits 0 1,776 1,954 2,149
Total 6,216 6,838 7,521
Assumption
Increase every year 0

Selling Expenses

Selling Expenses are assumed 2% of Sales Revenue 57,368 72,666 83,758

Sales

0
2,011 2,868,413
2,012 3,633,323

2,013 4,187,882

NAIMAT OIL AND GHEE MILLS PVT. LTD.

DEPRECIATION COST

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

Depreciation Schedule of Fixed


Asset Rs. (000) Rs. (000)

Depreciable Rate Depreciatio


Cost s n

Plant & Machinery 194,996 15% 29,249

Building 61,753 5% 3,088

Furniture & Fixtures 100 5% 5

Vehicles 1,500 20% 300

TOTAL 32,642

Depreciation will be constant over the life of assets.

DEPRECIATION IS CALCULATED BY USING STRAIGHT LINE METHOD

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NAIMAT OIL AND GHEE MILLS PVT. LTD.
A Feasibility
Production Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd
capacity at100%
a) Cooking Oil 16,975 Tons
b) Vegetable Ghee 30,400 Tons
c) Laundry Soap 1,050 Tons
Working days p.a. 330
Capacity per day 150 Tons
No. of Shifts per day 3
SALES

Operating Years : 2,011 2,012 2,013

Production Efficiency
Assumed : 60% 70% 80%

A. Cooking Oil 10,185 11,883 13,580


Add; Beginning inventory - 1,019 1,290
Available for Sale 10,185 12,901 14,870
Less: Ending inventory 10% 1,019 1,290 1,487

Quantity Sold 9,167 11,611 13,383


60% 70% 80%

B. Production of Vegetable Ghee 18,240 21,280 24,320


Add; Beginning inventory - 1,824 2,310
Available for Sale 18,240 23,104 26,630
Less: Ending inventory 10% 1,824 2,310 2,663

Quantity Sold 16,416 20,794 23,967

C. Laundry Soap 630 735 840


Add; Beginning inventory - 63 80
Add; Beginning inventory 630 798 920
Less: Ending inventory 10% 63 80 92
56
Quantity Sold 7 718 828

Sale Revenue Rupees (000)


Price/
Description Ton 60% 70% 80%

Cooking Oil 115 1,054,148 1,335,254 1,539,055

Vegetable Ghee 110 1,805,760 2,287,296 2,636,410


By Islamian Business Executives 65
Laundry Soap 15 8,505 10,773 12,417
2,868,
A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

NAIMAT OIL & GHEE MILLS PVT LTD

LOAN REPAYMENT SCHEDULE


Rs.(000)

670,
616
Amount of Loan

Mark up rate 16%

Installment p.a 10

Opening Closing
Interest Principle PMT
Balance Balance
Years
67,06
1 670,616 107,299 2 174,360 603,554
67,06
2 603,554 96,569 2 163,630 536,493
67,06
3 536,493 85,839 2 152,900 469,431
67,06
4 469,431 75,109 2 142,171 402,370
67,06
5 402,370 64,379 2 131,441 335,308
67,06
6 335,308 53,649 2 120,711 268,246
67,06
7 268,246 42,919 2 109,981 201,185
67,06
8 201,185 32,190 2 99,251 134,123
67,06
9 134,123 21,460 2 88,521 67,062
67,06
10 67,062 10,730 2 77,791 -

Markup during Construction 53,649

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

NAIMAT OIL AND GHEE MILLS PVT LTD


Estimated Income Statement
Rs.(000)
Years ending September 30 : 2011 2012 2013
50% 60% 70%
2,868,4 3,633,3 4,187,8
Sales 13 23 82
Les: COST OF SALES
1,963,0 2,355,7 2,748,31
Raw Material 84 00 7
11,5 12,6 13,96
Labor 42 96 5
65,6 69,3 73,31
Manufacturing Overheads 77 15 7
32,6 32,6 32,64
Depreciation 42 42 2
2,072,9 2,470,3 2,868,2
Total Cost of Goods Manufactured 44 53 42
318,7 403,7
Add: Beginning Inventory - 13 03
318,7 403,7 465,32
Less: Ending Inventory 10% 13 03 0
1,754,2 2,385,3 2,806,6
Cost of Sales 31 63 24
1,114,1 1,247,9 1,381,2
Gross Profit 81 60 58
OPERATING EXPENSES:
4,5 4,9 5,44
Administrative Expenses 02 53 8
6,2 6,8 7,52
General Expenses 16 38 1
57,3 72,6 83,75
Seling Expenses 68 66 8
68,0 84,4 96,7
Total Operating Expenses 87 57 27
1,046,0 1,163,5 1,284,5
Operating Profit 95 03 32
OTHER EXPENSES:

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

Financial Charges on:


174,3 163,6 152,90
Long Term Loan 60 30 0
3 3 3
Amortization of Pre-Production Expenses 56 56 56
174,7 163,9 153,2
Total Other Expenses 16 86 56
871,3 999,5 1,131,2
Profit Before Tax and Worker's Fund 78 17 75
60,9 69,9 79,1
Worker's Fund 96 66 89
810,3 929,5 1,052,0
Profit/(Loss) Before Tax 82 50 86
324,1 371,8 420,83
Tax Provisions @ 40% 53 20 4
486,2 557,7 631,2
Net Profit 29 30 52

Dividend - - -
486,2 557,7 631,2
Retained Earning 29 30 52
Ratios:
Gross Profit Ratio 39% 34% 33%
Operating Profit Ratio 39% 34% 33%
Net Profit Ratio 17% 15% 15%

ASSUMPTIONS
Rs.(000)
Preliminery Expenses Amortized in 5 years 1780

Workers funds
Profit Participation
: 5%
Welfare : 2%
TOTAL 7%
ACCOUNTS RECEIVABLE OF SALES 10%
ACCURED EXPENSES OF SALES 5%
ACCOUNTS PAYABLES OF MATERIAL CONSUMED 10%
Tax provision 40%

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

NAIMAT OIL AND GHEE MILLS PVT LTD


Balance Sheet
End of
Operating Years
Construction
2011 2012 2013
ASSETS:

CURRENT ASSETS:
Cash and Bank Balance 12000 122769 2141577 4133803
Short Term Investment 0 0 0 0
Accounts Receivable 86052 286841 363332 418788
Raw Material Inventory 1963084 1963084 1963084 1963084
other assets 0 0 0 0
Inventory of Finished
Goods:
Cooking Oil 117128 117128 148362 171006
Vegetable Ghee 200640 200640 254144 292934
Laundry Soap 945 945 1197 1380
Advances, Deposits and Prepayments 6000 12000 24000 48000
Stores & Spares 5000 5250 5512.5 5788.125
Total Current Assets 2390848 2708657 4901208 7034783

FIXED ASSETS:

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd
Fixed Assets at Cost 325822 325822 325822 325822
Accumulated Depreciation on Fixed
Assets 0 32642 32642 32642

Fixed Assets Net 325822 293180 293180 293180

Preliminery Expenses 1780 1424 1068 712

Total Assets 2,718,450 3,003,261 5,195,456 7,328,675


LIABILITIES AND EQUITY:
CURRENT LIABILITIES:
Bank Borrowings 1600757 423888 536924 618876
Acconts Payable 0 196308 144713 168831
Accrued Expenses 0 143421 181666 209394
Provision for Taxes 0 324153 709810 815156
Dividend Payable 0 0 0 0
Worker's Fund Payable 0 60996 133566 153390
Current Maturity of Log Term Debt 67,062 67062 67062 67062
Total Current Liabilities 1,667,819 1215827 1773741 2032708

LONG TERM DEBTS:


Long Term Debt 603,554 536,493 469,431 402,370
Total long Term Debt 603,554 536,493 469,431 402,370
EQUITY:
Paid-Up-capital 447,077 447,077 447,077 447,077
Retained Earnings - 486229 1550944 2773678
Reserves for contigencies 317634 954262 1672841
Total Equity 447,077 933,306 1,998,022 3,220,756
Total Liabilities and Equity 2,718,450 3,003,261 5,195,456 7,328,675

NAIMAT OIL AND GHEE MILLS PVT. LTD.


Cash Flow Statement
Operating Years

years ending 30th DECEMBER


End of 2011 2012 2013
Construction
SOURCES OF FUNDS:
2,072,07 2,344,53
Operating Profits 0 1,046,095 8 6
Amortization of preliminiry Expenses 0 356 356 356
Depreciation 0 32,642 32,642 32,642
2,105,07 2,377,53
Total Funds from Operation 0 1,079,093 6 4
Other Sources:
Long Term Loan 603,554 0 0 0
Bank Borrowings 1,600,757 423888 536924 618876
Paid-Up Capital 447,077 0 0 0
Increase in Liabilities - -451991 557914 258967

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd
3,199,91 3,255,37
Total Sources of Funds 2,651,389 1,050,989 4 7
APPLICATION OF FUNDS:
Investment in Fixed Assets 325,822 - - -
Financial Charges 51,192 107,299 96,569 85,839
Pre-Production Expenses 1,780 356 356 356
Repayment of:
Long Term Loan 67,062 67,062 67,062 67,062
Bank Borrowings
PAYMENT OF:
Taxes - 324,153 709,810 815,156
Dividends - - - -
Worker's Fund - 60,996 133,566 153,390
Short Term Investment - - - -
Increase in Current Assets (Other than Cash) 2,378,848 195,039 173,744 141,349
1,181,10 1,263,15
Total Application of Funds 2,824,704 754,904 6 1
2,018,80 1,992,22
Cash Surplus/(Deficit) (173,315) 296,085 8 6
(173,315 2,141,57
Cash at the Beginning of the Year - ) 122,769 7
2,141,57 4,133,80
Cash at the end of the year (173,315) 122,769 7 3

NAIMAT OIL & GHEE MILLS PVT LTD


Weighted Average cost of Capital

Nature Of Fund Amounts Interest Rate weight WACC

Long term Loan 670,616 0.14 0.60 56332

Paid up Capital 447,077 0.30 0.40 53649

1,117,693 100.00 109981

Weighted Cost of capital 9.84%

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A Feasibility Of NAIMAT Oil & Ghee Mills (Pvt.) Ltd

Calculation of IRR
Amortizati
Years Net Profit Depriciation on Out/ Inflow of cash
(1,117,6
0 93)
1 486,229 32,642 356 519,227
2 557,730 32,642 356 590,728
3 631,252 32,642 356 664,250

IRR 26%
Pay back period
Total inflow 1,774,205
1,117,69
Outflow 3

pay back
period 1.59
7.08
2.4

Pay back 1 year 7 months and 3


period days

Visit Highlights

Group photo with finance manager Asia Oil & Ghee mills

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Photo with The Technical Manager Asia Oil & Ghee mills

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