Maize RequiredQUARTERLY REQUIREMENT OF MAIZE

Plant Capacity 80metric tonnes/24hrs= 1,600 x 50Kg of maize/24hrs

Maize required in a month of 22 working days 1,600 x 22 = 35,200 x 50Kg of maize1,760 metric tonnes

Maize required for 3 months 3 months x 35,200= 105,600 x 50Kg of maize5,280 metric tonnes

Maize required for 6 months6 months x 35200 = 211,200 x 50Kg of maize10,560 metric tonnes

Maize required for 9 months9 months x 35200 = 316, 800 x 50Kg of maize15,840 metric tonnesMaize required for 12 months/ 1 year12 months x 35200 = 422,400 x 50Kg of Maize21,120 metric tonnes

CostingsAPPENDIX IIPRODUCTION COST Maize @ K76.5 per 50Kg bag ProductYieldStd BranMaizeMaize Bran UnitS.PriceCostGainKgKgKgCost/KgKKB/Fast25.5251.7844.5R/Meal17.5251.7844.5Bran7250.727.250Add Direct CostsMonthlyMonthlyBreakRollerPdctionCostsFastMeal(22days*24hrs)Maize44.544.5Labour60,544200,0003.303.30Electricity60,54425,0000.4129228330.412922833Distribution60,54450,0000.8258456660.825845666Water60,54410,0000.16516913320.1651691332Cotton60,5446,0000.09910147990.0991014799Empty Bags2251.306421775951.3064217759Less Bran Gains7.2Marginal Cost/25kg51.306421775944.1064217759Current SP6046Contribution/25Kg8.69357822411.8935782241Note:*All the above calculations are based on full capacity that is at 24hrs per day, however, currently we working at 12hrs per day.*Cost per kg of maize is cost of 50kg bag divied by 86% of 50kg, 86% being extraction rate.*Bran gain is 7kg bran multiplied by 25kg of roller meal, divided by 17.5kg which is the std yield in 50kg bag of maize multiplied by selling price for 25kg of bran.*Monthly production units are obtained by taking into consideration the 80ton/24hrs capacity, extraction rate at 86%, 22 working days and 24hrs in each day.*The above costings shows that 86.73% of mealie meal cost is from maize hence the need to seriuosly consider cheaper sources of maize.

InputsAPPENDIX I

INPUT COSTINGSMONTHMAIZEB/FASTR/MEALM/BRANTOTALMaize Packaging POWERWaterD/butionCottonD. LabourTotal50Kg25Kg25Kg25KgM/Meal K76.5/50Kg K2/bagKKKKKKMarch35,20039,35421,1908,44860,5442,692,800121,08825,00010,00050,0006,000200,0003,104,888April35,20039,35421,1908,44860,5442,692,800121,08825,00010,00050,0006,000200,0003,104,888May35,20039,35421,1908,44860,5442,692,800121,08825,00010,00050,0006,000200,0003,104,888June35,20039,35421,1908,44860,5442,692,800121,08825,00010,00050,0006,000200,0003,104,888Cost of Maize for four months period.10,771,200.00

TOTAL REVENUEMonthB/FASTR/MEALM/BRANWeight25Kg25Kg25KGS. PriceK60K46K18March2,112,0001,810,284152,064April2,112,0001,810,284152,064May2,112,0001,810,284152,064June2,112,0001,810,284152,064

Note: Mealie meal split ratio is at 65% for Break fast and 35% for Roller meal.

Cash flowsAPPENDIX IIICASH FLOW ANALYSIS MarchAprilMayJuneTotalsOPENING BALANCE3,119,8884,074,3485,023,8085,973,268MATERIALS2,819,8882,819,8882,819,8882,819,88811,279,552ADMIN20,00020,00020,00020,00080,000DISTRIBUTION50,00050,00050,00050,000200,000ELECTRICITY 25,00025,00025,00025,000100,000WATER10,00010,00010,00010,00040,000LABOUR200,000200,000200,000200,000800,000

-5,000949,4601,898,9202,848,380REVENUEB/FAST2,112,0002,112,0002,112,0002,112,0008,448,000R/MEAL1,810,2841,810,2841,810,2841,810,2847,241,136M/BRAN152,064152,064152,064152,064608,256

NET CASH FLOW4,074,3485,023,8085,973,2686,922,728

PROFIT & LOSS PROJECTIONSPROFIT & LOSS MARCHAPRILMAYJUNEREVENUEBREAK FAST2,112,000.002,112,000.002,112,000.002,112,000.00ROLLER MEAL1,810,284.001,810,284.001,810,284.001,810,284.00M/BRAN152,064.00152,064.00152,064.00152,064.00COST OF SALES3,104,888.003,104,888.003,104,888.003,104,888.00GROSS PROFIT969,460.00969,460.00969,460.00969,460.00Provisional loss @ 2% of GP19,389.2019,389.2019,389.2019,389.20DEPRECIATION15,000.0015,000.0015,000.0015,000.00ADMIN20,000.0020,000.0020,000.0020,000.00SALARIEES184,000.00184,000.00184,000.00184,000.00

PROFIT BEFORE TAX731,070.80731,070.80731,070.80731,070.80TAX @35%255,874.78255,874.78255,874.78255,874.78NET PROFIT475,196.02475,196.02475,196.02475,196.02

GROSS PROFIT MARGIN0.240.240.240.24NET PROFIT MARGIN0.120.120.120.12

The above projections assumes that there won't be adverse drastic changes in the cost of raw materials in the subsequent months.