Flour Mill Project

1
Institute of Management Sciences

Feasibility Report
On
Roller Flour Mills
KHAIBER Flour Mills (Pvt.) Ltd.

Takhtani By Pass,
Quetta.
Nida Mohammad Khan Achakzai
Tamoor Shah Shamail Kakar
Waqas Ahmed Qureshi
Khalid Khan
Saadat Ali
Nida Ishfaque
Nida Mohammad, Khalid khan, Tamoor Shah, Waqas Ahmed, Saadat ali, Nida Ishfaque
2
TABLE OF CONTENTS
----------------------------------------------------------------------------------------------------------S#
CONTENTS
PAGE#
----------------------------------------------------------------------------------------------------------PART A
GENERAL
SUMMARY OF THE PROJECT
LAND AND BULIDING
PLANT AND MACHINERY
RAW MATERIAL
WATER AND POWER
MARKET PROJECTS
DEMAND AND SUPPLY GAP
CONCLUSION
PART B
TECHNICAL
OBJECTIVES OF MILLING
10
WHEAT OF THE WORLD
11
WHEAT TYPE
11
DESCRIPTION OF WORKING PROCESSING
12
PART C
FINAJNCIAL & COSTS
FINANCIAL PROJECTIONS
14
ASSUMPTION UNDERLYING
EARNING & EXPENSES FORECAST
15
RAW MATERIAL
16
PACKING MATERIAL
17
MANPOWER
18
3
UTILITIES
19
OTHER MANUFACTURING OVERHEADS
19
STATEMENT OF DEPRECIATION
20
CLOSING INVENTORY
20
OPERATING EXPENSES
21
NET INITIAL WORKING CAPITAL
22
COST OF GOODS SOLD
23
FORECECAST OF INCOME STATEMENT
24
FORECAST OF BALANCE SHEET
30
FORECAST STATEMENT OF CHANGES

IN FINANCIAL POSITION
32
ECONOMIC EVALUATION
BREAK EVEN ANALYSIS
34
35
SUMMARY OF THE PROJECT
Name of the project:
Flour Mulling
Name of the Project:
KHAIBER FLOUR MILLS

(PVT) Ltd
ADDRESS:
Takhtani by pass, Quetta.
Corporate Setup:
Privated Limited Compay
Directors/ Sponsors
Mr. Naseeb Ullah Kakar

Ch: Hashmate Ali
TOTAL COST OF THE PORJECT:

Fixed Capital Cost
24.900
Working Capital
4.896
Total Equity Financing
20.121
67.53%
Total Debts Financing
9.675
32.47%
MEANS OF FINANCE:
5
LAND
A piece of land, measuring 2 acres has already been acquired by the sponsors for housing the plant and other
structures of the flour mills. The land is quite sufficient for the flour mills even if it is expanded. The cost of the
land is estimated Rs. 30, 00,000.00.
BUILDING
The cost for the mill machinery building, wheat godown, atta godown, overhead tank underground tank and the
boundary wall is worked out to be Rs. 80, 00,000.00. It is being completed with in eight to ten months. For the
details please see the building plan with the construction costs.
6
THE PLANT AND MACHINERY (RS. In 000)
Description
Quantity
Rate
Amount
Roller Bodies
06
435
2610
Plan Sifter
02
725
1450
Washing Machine
01
435
435
Reel Machine
01
87
87
Grain Cleaning Separator(8ton)
02
116
232
Scourer Machine
01
87
87
Purifier
01
203
203
Production Pipes
1700 ft.s
(61.40)
104
Lift Pipes
1100 ft.s
(101.50)
112
General Pipe
01
29
29
Conveyor Worm
270 ft.s(1375)
371
Air Lock Gate
07
8.70
61
Air Lock With Cyclone
20
5.80
116
Low Pressure Cyclone 4x8 Size
03
36.25
109
High Pressure Cyclone
01
87
87
Water Pump
02
8.70
17
Packing Bins
04
4.35
17
Air Preston
01
87
87
Elevator
05
87
435
Cyclone Small
16
4.35
70
Cyclone large
04
26
104
Welding Plant
02
11.60
23
Battery Set 4 ways
01
73
73
Battery Set 8 ways
01
145
145
Electric Motors 2-75 HPs
46
870
870
Pannel, Starters etc.
lot
653
653
Cable Various type & guage
lot
653
653
Complete Machinery & Electric Works,
Installation and Commissioning Charges
435
435
Total Cost
=
9675
7
RAW MATERIAL
The main raw material is wheat. The food Department Government of Balochistan has already sanctioned the
supply of wheat on demand from the fixed off-take of the province. As such there will be no problem in this
regard.
WATER AND POWER FACILITEIS
QESCO HT3 Power line is passing in front of the mill site. An application for the supply of 400KVA
transformer and power connection already submitted to the QESCO at Quetta. A standby generator will be an
option to use as an alternative source of power.
8
MARKET PROSPECTS
The monthly demand of atta in Quetta City is estimated to be 25000 to 75,000 bags (100). Due to Few No of
flour mills in the entire City the atta is transported from other cities to meet the demand. The sponsors do not
see any marketing problem. Further the prospective market consists of a very large area from, Quetta to Border
Ares of Afghanistan.
DEMAND AND SUPPLY GAP

A comparison of estimated supply and projected demand of wheat flour in Balochistan is given below: (in
tones)
Year
Demand
Supply
Gap
..
....
2005
1003880
886500
117380
2006
1054074
886500
167574
2007
1106777
886500
220277
2008
1162116
886500
275616
9
CONCLUSTION
Establishment of a flour Mill in Quetta City Provincial headquarter of the Baluchistan seems all the more
imperative in the face of fast changing scenario in the region. The population of the area itself in particular has
already into grow.
The proposed project will strengthen Governments efforts to industrialize the areas of Balochistan especially
the Quetta city.
The sponsors of the project are technically and financially capable and competent and have al lot of experience
in this field. As such the risks for its failure are very very low.
The project is technically and financially viable and will break even just for the very first year.
The projects profit & Loss summary show that it will be earning profits form the very first year of its operation
and will pay the entire loans according to the financing Bank Repayment Schedule.
10
OBJECTIVES OF MILLING
The objectives in the milling of white flour are:
To make- as completely as possible a separation of endosperm form the bran and germ so that the flour shall be
free form bran specks and of good color and so that the palatability and digestibility of the product shall be
improved and its storage life lengthened.
To reduce the maximum amount of endosperm to flour fineness there by obtaining the maximum extraction of
white flour form the wheat and at the some time to ensure that the amount of damage to the starch granules
does not exceed the optimum.
11
WHEAT OF THE WORLD
Wheat is grown throughout the world from the borders of the arctic to near equator- although the crop is most
successful between latitude it ranges form sea level to 10,000 ft. in Kenya and 15,00 ft. in Tibet. Cultivated
varieties which are of widely differing pedigree and are grown ender varied conditions of soil and climate show
wide variations in characteristics.
WHEAT TYPE
In general way wheats are classified according to (1) the texture of the endosperm because this characteristic
of the grain is connected with the way the grain breaks down in milling and (2) the protein content because the
properties of the flour and its suitability for different purpose are related to this characteristic.
Hard and Soft Wheat
Hardness and Softness are milling characteristics relating to the way the endosperm breaks down. Greer
and Hinton (1950) observed that if the cut surface of hard wheat is lightly and uniformly wetted and allowed to
dry a pattern of cracks appears following the lines of the endosperm cell boundaries of the endosperm (which
resemble that in hard wheat) but passes indiscriminately through.
12
DESCRIPTION OF WORKING PROCESS
The grain discharged from the supply truck and be means of input paternoster is delivered to raw silo.
The grain cleaning procedure at first stage takes its place at the seed cleaner. The sand dust stones and other
heavy foreign particles are removed by means of vibrating sieves. Light particles and dust are separated from
the grain through aspiration. Then by means of gravity the grain go to destoner for mineral impurities removing
and after that to wild oat- (or cockle) remover.
To begin peeling process the grain is delivered to the scourer where dry first peeling of the outer shell of the
grain is executed.
Then cleaned grain is delivered to intensive humidifier where from 3 to 5% water is added.
Afterwards the wetted grain is moved by auger into the four- section silo for conditioning during 4-6 hours.
Such operation allows hardening the peripheral part of the grain.
After conditioning and second peeling but before first grinding the grain is wetted again. This operation is
occurred at the mild humidifier where only 0.5% water has been added. (Optional).
After conditional the grain reside approximately 20 minutes at the small silo which is placed the top of the first
roller mill. In run that procedure allows to harden the grain shell and sill stimulate the easiest way of bran
separation after first breaking.
First breaking take place at the first roller in roller mill #1. the grain products by mean of pneumatic transport
are delivered to the 2-section. Thus due to the sifting procedure three types of flours can be separated. Coarse
milling products follow to the next reduction system of the roller mill #1 and #2 with afterwards fractions
separation in the adequate section of sifter machine and so on.
The bran is the one of the largest tail fraction which needs to be processed at the finisher for increasing of the
total flour output.
13
All grain products transportation is executed by pneumatic transport which consists of fan, filter-cyclone and
cyclone dischargers.
The flour and bran are transported to the adequate silo.
The flour of each grade by auger is delivered form silo to the filling weighing section for bagging.
14
THE FINANCIAL PROJECTS
The total cost of the project is estimated to be Rs. 297, 96,000.00 inclusive of the initial working capital Rs 40,
00,000.00. the details of the cost are as under.
THE ESTIMATED PROJECT COST (Rs. 000)

ITEM
SPONSORS BANKS
TOTAL
Land (2 acres)
3000
3000
Buildings
8000
8000
Plant & Machinery (with erection

And test period running)
Cost of Carriage
9675
9675
150
150
1200
1200
Furniture & Fixtures
150
150
Preliminary & Startup Expenses
375
375
2000
2000
350
350
WAPDA Connection (with

400KVA transformer)
Supply Vehicles
Contingencies
Fixed Capital Cost
Percentage
15225
61%
Initial Working Capital
4896
TOTAL PROJECT COST

Equity-Debt Ratio
20121
67.53%
9675
39%
24900
100%
4896
9675
32.47%
29796
100%
15
ASSUMPTION UNDERLYING
EARNING & EXPENSES FORECAST
Sales Estimates (Rs. 000-Qty. /tones)
_______________________________________________________________________________
Year Operations
1st Year
2nd Year
3rd Year
4th Year
5th Year
_______________________________________________________________________________
Capacity Utilization
50%
55%
60%
65%
70%
Production during the Year
9600
10560
11520
12480
13440
Add: moister 4-5%per ton
432
475
518
561
604
10032
11035
12038
13041
14044
Net: quantity produced

Add: opening stock of flour
64
70
76
82
Less: closing stock of flour

(2days)
64
70
76
82
88
9968
10965
11962
12959
13956
Quantity available for sale
Sale price (Rs. 12000/-per ton 12

12
12
12
12
_______________________________________________________________________________
Net Sales Value
119616131580143544155508167472
_______________________________________________________________________________
Assumption and Explanation Remarks:

a) Operation times
(shift/ days)
b) Production period
(days/ annum)
300
c) Rated capacity
(in ton)
19200
d) Selling price per ton
(in Rs)
12000
16
Raw Material
The price of wheat is assumed at Rs. 11000/-per ton based on open market price. Annual cost for the projected
period is estimated as under:
Operation Year
Capacity utilization
1st Year
2nd Year
3rd Year
50%
55%
60%
Production during the year
9600
Add: Wastage 1% per ton
96
Net quantity
9696
Purchase price (in Rs.)
Cost of Raw Material
11
4th Year
5th Year
65% 70%
10560
11520
12480
13440
106
116
126
136
10666 11636 12606 13576

11
11
11
106656117326127996 138666
11
149336
17
Packing Materials
50% of the annual production will be packed in the 60kg bags @ Rs 6/-per bag.
Year
1st Year
2nd Year
3rd Year
4th Year
5th Year
Production to be packed
No of bags
Cost per bag (in Rs)
Total Cost
4984
83067
6
498
5482
91374
6
548
5980
99680
6
597
6478
6976
107987116293
6
6
647
696
30% of the annual production will be packed in the 30kg bags @ Rs 4/-per bag
No of bags
Total Cost
2994
99667
4
399
3290
3589
3888
109634119600129567139533
4
4
4
439 478
518
557
4187
4
20% of the annual production will be packed in the 20kg bags @ Rs. 3/-per bag.
No of bags
Total Cost
1994
99700
3
299
2193
2393
2593
109670119640129610139580
3
3
3
329
358
388
417
2793
3
Total Cost of the packing Material
Plastic bags 60 kgs
498
548
597
647
696
Plastic bags 30 kgs
399
439
478
518
557
Plastic bags 20 kgs
299
329
358
388
417
1196
1316
1433
1553
Total Cost
1670
18
Manpower
Milling Staff:
Particular
Number
Miller
Assistant Miller/ Fitter
Electrician
Skill man
Washer man
Helper
Labour
01
01
Total Pay
Yearly
96
4
4
48
01
3
3
36
01
3
3
36
01
3
3
36
02
2
4
48
06
3
18
216
___________________________________________________
Total
=
Fringe benefit @ 25%
Grand Total
Monthly
13
516
129
=====
645
======
The annual salaries & wages are escalated by 10% for projected period:
1st Year
2nd Year
3rd Year
4th Year
5th Year
645
710
781
859
Administrative Staff:
Particular
945
Number
Monthly
Total Pay
Yearly
Chief Executive
01
16
16
192
Manager Production/Operation 01
10
10
120
Manager Sales
01
6
6
72
Accountant
01
4
4
48
Assistants
02
3
6
72
Drivers
02
3
6
72
Peon
01
3
3
36
Chowkidar
02
3
6
72
___________________________________________________
Total
11
684
Fringe benefit @ 25%

Grand Total
171
=====
855
======
The annual salaries & wages are escalated by 10% for projected period:
855
1035
944
1139
1st Year
2nd Year
3rd Year
4th Year
5th Year
1253
19
Utilities
Power;
Fixed Charges
Connecting Load x Rs x 200 x No. Of months
400
200
12
Variable charge
Consumption x Hrs x No. of days
300 x
24
300
1st Year
Efficiently %
50%
Kwh
1080,000
Rate (Rs)
Cost
2nd Year
1188,000
1296,000
735
216,000 kwh
3rd Year
60%
0.68
960
kwh
55%
0.68
fixed charges
65%
881
5th Year
70%
1404,000
1512,000
0.68
0.68
954
1028
0.68
808
4th Year
Total Cost Of Electricity

1st Year
2nd Year
3rd Year
4th Year
5th Year
Fixed Charges
960
960
960
960
960
Variable Charges
735
808
881
954
1028
Total
1665
1768
1841
1914
1988
Other Manufacturing Overheads

The overheads are estimated @ 10% of Machinery Cost which includes cost of insurance, Stores & Spares
and maintenance.
1st Year
968
1065
1162
2nd Year
1259
3rd Year
4th Year
5th Year
1356
20
Statement of Depreciation
Particulars
Amounts
Contingencies Total
Depreciation%
Depreciation Rs
Land
Mill Building
Building (Admin Block)
Machinery
Carriage +
Electric connection
3000
6340
1660
9575
0
145
25
3000
6485
1685
0%
5%
5%
0
324
84
1350
135
11160
10%
1116
Furniture & Fixture

Supply Vehicles
150
2000
15
30
165
2030
10%
10%
17
203
Total
24175
350
24525
1744
Direct Cost
1660
Administrative Expenses
84
======
1744
======
Closing Inventory
The closing inventory is estimated at 3 days cost of the production. Annual cost of the inventory is estimated as
under:
1st Year
3 days cost of production
1127
2nd Year
1240
3rd Year
1352
4th Year
1465
5th Year
1577
21
Operation Expenses
General Administrative Expenses:
Salaries & wages
855
941
Printing & Stationary
30
Traveling & Conveyance
100
Tel. Telegraph& postage
60
Power and fuel
100
Entertainment expenses
50
Legal & Audit fees
20
Insurance & Bank charges
148
Amortization of pre-op. exp. 30
Depreciation
84
Miscellaneous expenses
50
1st Year
2nd Year
1035
3rd Year
1139
5th Year
1253
33
110
66
110
4th Year
36
120
72
120
39
130
78
130
55
20
162
30
84
55
60
20
176
30
84
60
42
140
84
140
65
20
191
30
84
65
70
20
206
30
84
70
Total =
1527
1666
1813
1971
2139
____________________________________________________________________________
Selling & Distribution Expenses:
Selling expenses are estimated at 2% of annual sales revenue.
1st Year
2392
2631
2870
Financial Expenses:
851
1064
639
2nd Year
3109
1st Year
3rd Year
5th Year
3348
2nd Year
426
4th Year
3rd Year
4th Year
5th Year
213
Amortization: preliminary startup expenses are amortized over a period of 10 years annual cost of
amortization is estimated as under:
Annual cost of amortization
Pre-operation & startup expenses
Annual Amortization @ 10 %
Amortization (Manufacturing)
Amortization (Administrative)
375
38
8
30
22
NET INITIAL WORKING CAPITAL (Rs.ln 000)
Particular
Raw Materials
Finished Goods
1st Year
Tied up
period
10 Days
3 Days
Packing Materials 15 Days

Debtors
Cash
3 Days
Lump sum
2nd Year
3555
11271240
3rd Year
4th Year
5th Year
3911
4267
4623
1352
1465
1577
4979
60
66
72
78
84
1196
1315
1435
1554
1674
25
27
30
32
35
_____________________________________________________________
5963
6559
7155
7751
8347
_____________________________________________________________
Less:
Accounts Payable @ of 3 days of annual
Requirement of raw material
1067
1174
1281
1388
1495
_______________________________________________
Net Working Capital
4896
5385
5874
6363
6852
_______________________________________________
23
Cost of Goods Sold
______________________________________________________________________________
Year of Operation
1st Year
2nd Year
3rd Year
4th Year
5th Year
_______________________________________________________________________________
Capacity utilization
Production in tones
50%
9600
55%
10560
60%
12520
65%
70%
12480
13440
Direct Cost:
Raw Material
106656117326127996138666149336
Packing Material
1196
1316
1434
1555
1674
Labor
645
710
774
839
903
1695
1780
1865
1950
2035
968
1065
1162
1259
1356
Depreciation
1660
1660
1660
1660
1660
Amortization
Miscellaneous
50
55
60
65
70
Overheads:
Utilities
Other overheads
_______________________________________________________
Total Cost
112878123920134960146002157042
_______________________________________________________
Add: Opening stock (2days) 0
1127
1240
1352
1465
Less: Closing Stock (3days) 1127
1240
1352
1465
1577
_______________________________________________________
Cost of Sales
111751123807134848145889156930
_______________________________________________________
Unit Cost (Per ton)
11.64
11.72
11.71
11.69
11.68
24
Forecast of Income Statement
_______________________________________________________________________________
Year of Operation
1st Year
2nd Year
3rd Year
4th Year
5th Year
_______________________________________________________________________________
Seles
119616131580143544155508167472
Cost of Goods Sold
111751123807134848145889156930
_______________________________________________________
Gross Profit
7865
7778
8696
9619
10542
Gen. & Admin Expenses
1527
1666
1813
1971
2139
Selling & Distbu. Expenses
2392
2613
2870
3109
3348
Empty Bardana Sales
(2400)
(2640)
(2880)
(3120)
(3360)
Operating Expenses
______________________________________________________
Operating Profit
6346
6134
6893
7659
8415
Bank Finance @ 11%
1064
851
639
426
213
Profit before Tax
5282
5283
6254
7233
8202
Income Tax @ 35%
1849
1849
2189
2532
2871
Net Profit after Tax
3433
3434
4065
4701
5331
Proposed Dividend @ 30%
1030
1030
1220
1410
1599
Un-Appropriated Profit
2403
2404
2845
3291
3732
2403
2404
2845
3291
Financial Expenses
Payment & Market up on
Opening Balance
25
Carried Forward
2403
4807
5249
6136
7023
Gross Profit
6.57
5.91
6.06
6.19
6.29
Operating Profit to Sales
5.31
4.66
4.80
4.93
5.02
Profitated Ratio (%)
Pre-Tax Profit to Sales4.42
4.02
4.80
4.93
4.80
Net-Profit to Sales
2.87
2.61
2.83
3.02
3.18
Return on Total Assets
10.57
10.32
12.69
15.06
17.62
Retrun Owners Equity
15.18
13.64
15.86
17.78
19.61
Return on Equity before Tax 23.36
20.98
24.40
27.36
30.17
26
Gross Profit to sale
Gross profit
Sales
7865 X 100
119616
6.57%
=
Operating profit to sale
operating profit
Sales
6346 X 100
119616
5.13%
=
Pre- Tax profit to sale
=
=
=
Net profit to sale
=
=
=
Average Equity
Return on Owner Equity
Net profit
Sales
3433 X 100
119616
2.87%
= equity at the end of the construction period + equity at the end of year1
=
20121 + 22524/2
Net Profit
AV. Equity
3433 X 100
21322.5
15.18%
=
=
Return on total Assets
pre tax profit

Sales
5282 X 100
119616
4.42%
=
=
=
2
=
213222.5
Profit
Total Assets
3433
X 100
29796 + 32361
2
10.57
27
____________________________________________________________
1st Year
2nd Year
3rd Year
4th Year
5th Year
____________________________________________________________
Operating Income
Add Depreciation
Net income
6346
6134
6893
7659
8415
1660
1660
1660
1660
1660
____________________________________________________________
8006
7794
8553
9379
10075
Land
Building (75%)
Machinery (50%)
Net Working Capital
Net cash inflow for 5th Year
3000
6000
4838
4896
28809
=====
1. Pay Back Period:

Cash out flow-29796
Cash inflow
1.
2.
3.
4.
5.
8006
7794
8553
9379
28809
x=
3 + 5443
9379
=
=
3 + 0.58
3.58 years
28
2. Discounted pay Back Period
IRR = 121
Cash out flow = 29796
Discounted cash in flow:1.
2.
3.
4.
5.
7148
6213
6088
5960
16347
x=
=
x=
4+ 4360
16347
4 + 0.26
4.26 years
3. Profitability Index
=
sum of p.v of cash inflow

Initial cash out flow
41756
29796
1.40
4. Net present value

NPV
=
=
=
sum of P.V Initial less flow

Rs 41756- Rs29796
Rs 11960
29
IRR
NPV @ 20% =
NPV @ 25% =
Rs 3338
(742)
IRR
20% + x
amount at lower rate initial cash outflow

Amount at lower rate amount at higher rate
Rs 33134- Rs29796 X (0.05)

Rs 33134 -Rs29054
3338
4079
=
=
0.0409* 100
4.09%
IRR
IRR
=
=
20% + 4.09%
24.09%
X 0.05
30
Forecast of Balance Sheet
_______________________________________________________________________________
As on
Const. Period
1st Year
2nd Year
3rd Year
4th Year
5th Year
_______________________________________________________________________________
Current Assets
Cash & Bank Balance
4896
Stock
Packing Material
Debtors
3297
5023 4978
5377
4682
5150
5618
60
66
72
1196
1316
1435
5776
6086
6554
78
84
1555
1674
________________________________________________________________
Total Current Assets
4896
9235
11555
12103
13096
14088
Fixed Assets Net
24900
23126
21382
19638
17894
16150
________________________________________________________________
Total Assets
29796
32361
32937
31741
30990
20238
Account Payable
1067
1174
1281
1388
1495
Proposed Dividend
1030
1030
1220
1410
1599
Current Liabilities
________________________________________________________________
Total
2097
2204
2501
2798
3094
Bank Finance
LMM Finance
Finance
Total Bank Finance
9675
0
7740
0
9675
5805
0
7740
3870
0
5805
1935
0
3870
0 Running
0
1935
__________________________________________________________
Total Liabilities
9675
9837
8009
6371
4733
3094
31
Owner Equity
Paid up Capital
20121
20121
20121
20121
20121
20121
2403
4807
5249
6136
7023
__________________________________________________________
Total Equity
20121
22524
24928
25370
26257
27144
__________________________________________________________
Total Liabilities
And Equity
29796
32361
32937
31741
30990
30238
===================================================
32
Forecast statement of Changes in financial Position
_______________________________________________________________________________
Year Ending
End of cost 1st Year
2nd Year
3rd Year
4th Year5th Year
Period
_______________________________________________________________________________
Cash Flow from Operating Activities
Profit before taxation
5282
5283
6254
7233
8202
Depreciation (Total)
1744
1744
1744
1744
1744
Amortization
38
38
38
38
38
__________________________________________________________
Operating Profit before
Working Capital changes
7064
7065
8036
9015
9984
(4339)
(2320)
(548)
(933)
(992)
107
297
297
296
(Increase)/Decrease in
Current Assets
(Decrease)/Increase in Current Liabilities

(Other than Bank Borrowing) 0
2097
__________________________________________________________
Cash Generated
From Operating
4822
4832
7785
8319
9984
Income Tax paid
1849
1849
2189
2532
2871
Borrowing
9675
(1935)
(1935)
(1935)
(1935)
(1935)
(Inerease in Paid up Capital
20121
(Decrease) in Bank
_________________________________________________________________
Net Cash from (Used in
Operating Activities)
29796 4908
4938
7531
7725
8355
33
Cash Flow from Investing Activities
Fixed Capital Expenditures
24900
0 0
Advance & other Invetsments
________________________________________________________________
Net Cash used in
Investing Activities
24900
1030
Cash Flows from Financinq Activities

Dividend Paid
1030
1220
1440
________________________________________________________________
Net Cash used in
Financing Activities 0
1030
1030
1220
1440
Net (Decrease) in
Cash & Bank Balance
4896
Cash & Bank Balance
(1599)
1726
(45)
399
4896
3297
5023
4978
399
5377
______________________________________________________________
Cash & Bank Balance
At Closing
4896
3297
5023
4878
5377
5776
_______________________________________________________________
34
Economic Evolution
Contribution to the Gross National Product:
__________________________________________________________________________________
1st Year
2nd Year
3rd Year
4th Year
5th Year
__________________________________________________________________________________
Value of Production
119616131580143544155508
167472
Less: Intermediate Inputs

Raw Material
10665611732612799613866614933
Packing Material
1196
1316
1433
1553
1670
Water, Power & Fuel
1795
1878
1961
2044
2128
Other Mfg. Overheads
968
1065
1162
1259
1350
33
36
39
42
110
120
130
140
Printing & Stationary

Traveling & Conveyance
30
100
Tel. Tlgph. &Postage
60
66
72
78
84
Entertainment Expenses
50
55
60
65
70
Legal & Audit Fee
20
22
24
26
28
1064
581
639
426
213
Insurance Expenses
148
162
176
191
Selling & Distb. Expenses
2392
2631
2870
3109
3348
55
60
65
70
Markup on Bank Borrowing
Miscellaneous Expenses
50
__________________________________________________________________________________
Total Intermediate Outputs 114529125515136609147651158691
__________________________________________________________________________________
Value Added
5087
6065
6935
7857
8781
Value Added%
4.25%
4.61%
4.83%
5.05%
5.24%
__________________________________________________________________________________
35
Break Even Analysis
Operational Year 1:
__________________________________________________________________________________
Item
Total
Fixed
Variable
Fixed%
Var.%
__________________________________________________________________________________
Raw Material
Packing Material
Salaries and Wages
106656
1066560
100%
1196
11960
100%
645387
25860%
Depreciation
16601660
100%
0%
Amortization
100%
0%
1695 508
1187
30%
70%
Utilities
Other Mfg. Overheads
968 468
Markup on Bank
Long Term Loan
Miscellaneous Expenses
500
40%
48%
52%
1064
50
1064
18
0
32
Gen. Administrative Expenses 1527
855
0
Markup on Running Finance

Selling & Distb. Expenses
2392
100%
36%
0%
64%
0%
0%
672
56%
44%
2392
0%
100%
__________________________________________________________________________________
117891 4998
112893
__________________________________________________________________________________
Net Sales @ 50% Capacity
119616
Total Expenses @ 50%
117891
Break-Even Sales
Fixed Expenses/(1-Variable Expenses/ Sales)
4998/(1-112893/119616)
83300
83300*50/119616
34.82
Capacity Utilization

Flour Mill Project

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Flour Mill Project

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1

Institute of Management Sciences

KHAIBER Flour Mills (Pvt.) Ltd.

SUMMARY OF THE PROJECT

LAND AND BULIDING

PLANT AND MACHINERY

WATER AND POWER

DEMAND AND SUPPLY GAP

WHEAT OF THE WORLD

DESCRIPTION OF WORKING PROCESSING

FINAJNCIAL & COSTS

OTHER MANUFACTURING OVERHEADS

NET INITIAL WORKING CAPITAL

COST OF GOODS SOLD

FORECECAST OF INCOME STATEMENT

FORECAST OF BALANCE SHEET

FORECAST STATEMENT OF CHANGES

SUMMARY OF THE PROJECT

Name of the project:

Name of the Project:

KHAIBER FLOUR MILLS

Takhtani by pass, Quetta.

Privated Limited Compay

Mr. Naseeb Ullah Kakar

TOTAL COST OF THE PORJECT:

Total Equity Financing

Total Debts Financing

WATER AND POWER FACILITEIS

DEMAND AND SUPPLY GAP

THE ESTIMATED PROJECT COST (Rs. 000)

Plant & Machinery (with erection

Furniture & Fixtures

Preliminary & Startup Expenses

WAPDA Connection (with

Initial Working Capital

TOTAL PROJECT COST

Production during the Year

Add: moister 4-5%per ton

Net: quantity produced

Less: closing stock of flour

Quantity available for sale

Sale price (Rs. 12000/-per ton 12

Assumption and Explanation Remarks:

d) Selling price per ton

Production during the year

Add: Wastage 1% per ton

Purchase price (in Rs.)

Cost of Raw Material

10666 11636 12606 13576

Total Cost of the packing Material

Plastic bags 60 kgs

Plastic bags 30 kgs

Plastic bags 20 kgs

Fringe benefit @ 25%

Total Cost Of Electricity

Other Manufacturing Overheads

Furniture & Fixture

Packing Materials 15 Days

Add: Opening stock (2days) 0

Less: Closing Stock (3days) 1127

Unit Cost (Per ton)

Cost of Goods Sold

Gen. & Admin Expenses