cattle farm
TRANSCRIPT
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EXECUTIVE SUMMARY
The Project is proposed to be established on a 1 acre piece of land in Dolat pur
nearMultan. 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 10000Chaff cutter 3, 000
Weight scale 5, 000Total 18, 000
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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
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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 3rd
year
=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
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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
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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
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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 bankcalculation 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
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