EXECUTIVE SUMMARY

The Project is proposed to be established on a 1 acre piece of land in Dolat pur

near Multan. Ample supplies of water are available which is essential for both of
the cattle farm and the slaughter house. In order to assure availability of live
animals, it is proposed to develop strong links with the traders of live animals as
well as with farmers in the vicinity of the farm.

Project Investment
The initial investment of the project is Rs.800000 out of which capital cost of the
project is Rs. 123000 for purchasing the animals and constructing the building and
the rest is used to meet the working capital requirement Rs 677,000.the project life
is three years.

Project Costs Rs.

Fixed Capital Investment 123, 000
Working Capital Requirement 677, 000

Initial investment =Fixed Capital Investment +Working Capital Requirement

CFo = 123000+667000 =Rs.800, 000

Details of Project Costs

Machinery and Equipment Requirement/Unit

Water pump 1 10000

Chaff cutter 3, 000
Weight scale 5, 000
Total 18, 000
Fixed capital investment

Machinery and equipment = Rs 18,000

Fixed Land + Building infrastructure = Rs 35,000 per year x 3 years =Rs 105,000

Working Capital Rs

Stock 655,000

Cash at Bank 10,000

Cash in hand 12,000

Total Stock

Goats 170 units x 1,500 price per unit = Rs.255, 000

Cows 100 units x 4000 price per unit = Rs.400, 000

Total Rs.655, 000

Cash at bank Rs 22,000

Utilities of 3 years are including ,electricity and etc.

18,000+20,000+23,000=Rs.61, 000

Salaries of 1st year

2 employees =Rs. 8,000 PM x 2=16,000 x 12 =Rs.192, 000 yearly

Salaries of two Butchers for contract of slaughter house in the month of sale.

2 employees =12000*2=24, 000

Total salary of 1st year

= 192,000+24,000=Rs. 216,000
Salaries of 2nd year

2 employees = 8,500pm x 2=17,000 x 12 =Rs.204, 000 yearly

Salaries of two Butchers for contract of slaughter house

2 employees =13000*2=26, 000

Total Salaries of 2nd year

=204,000 + 26,000

=Rs. 230,000

Salaries of 3rdyear

2 employees = 9,000PM x 2=18,000 x 12 =Rs.216, 000yearly

Salaries of two Butchers for contract of slaughter house

2 employees =Rs.26, 000

Total Salaries of 3rdyear

=216,000 + 26,000

=Rs. 242,000

Deprecation

The machinery & equipment residual value after three years 9000 and the
calculated per year depreciation is given below.

Depreciation = cost - residual value / life

= 18000-9000/3= 3000 per year

Transportation charges for three years

Ist year 25,000, 2nd year 30,000, 3rd years35, 000

25,000+30,000+35,000=Rs.90, 000
Feeding Expenses for three years

150,000+120,000+80,000=Rs.350, 000

Vaccination Expense for three years

60,000+50,000+30,000=Rs.140,000

Cash expenses of 1st year are

Salaries Rs.216, 000

Utilities 18,000

Transportation Charges Rs.25, 000

Feeding Exp Rs.150, 000

Vaccinations Rs.60, 000

Total Rs. 469000

Cash expenses of 2nd year are

Salaries Rs.230,000

Utilities Rs.20,000

Transportation Charges Rs. 30,000

Feeding Exp Rs.1, 20,000

Vaccination Rs.50,000

Total Rs. 450000

Cash expenses of 3rd year are

Salaries RS.242,000

Utilities Rs.23,000

Transportation Charges Rs35,000

Feeding Exp Rs.80,000

Vaccination Rs.30,000

Total Rs. 410,000

Sales

Sales of 1st year

Goats 45 units x 16 kg =720 kg x 470 Rs. price per kg = Rs.338,400

Skin of goats

45 units x 350 Rs. price = Rs.15,750

Head & foot and etc.

45units x Rs.500 price = Rs.22, 500

Total sale of goats for one year = Rs. 376,650

Cows

20 units x 60 kg =1200 kg x 180 Rs. price per kg = Rs.216, 000

Skin of cows

20 units x Rs.800 price = Rs.16, 000

Head & foot

20 units x 1200 Rs. price = Rs.24, 000

Total sale of cows for one year = 256,000

Sales of 2nd year

Goats 55 units x 25 kg =1,375 kg x 470 Rs. price per kg = Rs.646,250

Skin of goats

55 units x 350 price =Rs. 19,250

Head & foot

55units x 500 price = Rs.27,500

Total sale of goats for one year = Rs.693,000

Cows

30 units x 90 kg =2,700 kg x 180 Rs. price per kg = Rs.486, 000

Skin of cows

30 units x 800 Rs.price = Rs. 24,000

Head & foot 30 units x 1,200 price = Rs. 36,000

Total sale of cows for one year = Rs.546, 000

Sales of 3rd year

Goats 70 units x 28 kg = 1960kg x 470 Rs. price per kg = Rs.921, 200

Skin of goats

70 units x 350 price = Rs.24, 500

Head & foot

70 units x 500 price = Rs.35, 000

Total sale of goats for one year = Rs. 980,700

Cows

50 units x 100 kg =5,000 kg x 180 price per kg = Rs. 900,000

Skin of cows

50 units x 800 price = Rs.40, 000

Head & foot

50 units x 1,200 price = Rs.60,000

Total sale of cows for one year = Rs. 1,000,000

Cash at bank calculation of 1st year is

Cash & bank 22000

Sale of 1st year 632650

Less cash exp (469000)

Total Rs. 185650

Total Cash at bank in 1st year Rs. 185650

Cash at bank calculation of 2nd year are

Previous year Cash in Hand & Bank 185650

Sale of 2nd year 1239000

Less cash Exp of 2nd year (450000)

Total 974650

Total Cash at bank in 2nd year 974650

Cash at bank calculation of 3rd year are

Previous year Cash in Hand & Bank 974650

Sale of 3rd year 1980700

Less cash Exp of 3rd year (410000)

Total 2545350

Total Cash at bank in 3rd year 2545350

Cash Flows are to be calculated as per yearly is given below.

CF1=(S-C-D) (1-T) +D

= (632650-469000-3000)(1-0)+3000

= Rs.163650

CF2=(S-C-D) (1-T) +D

= (1239000-450000-3000)(1-0)+3000

= Rs.789000

CF3=(S-C-D) (1-T) +D

= (1980700-410000-3000)(1-0)+3000

= Rs. 1570700

Required rate of return is 15%.