PRESENTED BY:

Muhammad Sulman AshrafSana KhalidUmair ShakeelJawwad Bajwa

IMPERIAL MUSHROOM FARM

OBJECTIVES

• To provide fresh mushrooms in the market with least price.

• Introducing fresh mushrooms as an alternative of canned mushrooms.

• Pioneer in fresh production market.• Awareness about nutritional benefits of mushroom.• Create new employment opportunities.

MUSHROOM MARKET

COMPETITOR ANALYSIS

Direct Competitors• Kakar Trading Company.•  Falcon Exports (pvt) Ltd.•  Business Concepts (Pvt) Ltd.•  PAK International Enterprises •  A.T.M Industries Pvt Ltd.

Indirect Competitors

OPERATIONAL FLOW CHART

Building Acquisition

Cotton Waste arrangement

Care Takers Spawn Order Polythene Bags Order

Raw Material Arrival

WettingMoisture LevelAccurate

Inaccurate

Filling of Bags

Cover the Bags Temperature Regulation

Un cover bags after 2 weeks

Growth Of 40 Days

Spawn Spray

Precaution

Cut if flower is completed

“A” Category

Wait 5 days more

Cut Before Maturity

“B” Category “C” Category

PACKING

DISPATCH

FINANCIALS

INITIAL CAPITAL INVESTMEMT

Products Cost (Rs.)Purchase of raw material 300000

Building rent 25000

Iron Shelves 30000

Supplies (office and operation) 10000

Cutting equipment 5000

Utilities 30000

Generator 120000

Humidity controller 10000

TOTAL 530000

PROJECTED INCOME STATEMENTSParticulars 2011 2012 2013

Sales 1440000 1800000 2400000

less: Cost of goods sold

Cotton Waste 44800 61600 80500

Spawn 24000 30000 37500

Plastic Bags 9600 12000 17500

Labor 224000 300000 375000

Total CGS 302400 403600 510500

Gross profit 1137600 1396400 1889500

Particulars 2011 2012 2013Less: Operating expenses:

Administrative exp Salaries Electricity Traveling

240000 120000 48000

26400013200050000

29040014400052000

Marketing exp Advertisement Telephone

12000024000

100000 25000

10000027000

Total Operating Expenses 552000 571000 613400

Earning before income tax 585600 825400 1276100

Tax deduction: (5% on sales) 72000 90000 120000

Net income 513600 735400 1156100

BALANCE SHEET FOR THE YEAR 2011

Particulars Debit (Rs.)

Credit (Rs.)

Current Assets:

Cash 1000000

Inventory (F/G, Material) 56800

Total Current Assets 1056800

Fixed Assets:

Land & Building (25000/month rent) 300,000

Machinery (30,000) 27000

Less: accumulated depreciation (30,000 @ 10%=3000)

Total Fixed Assets 327000

TOTAL ASSETS 1383800

Particulars Debit (Rs.)

Credit (Rs.)

Current Liabilities:

Estimated income tax 72000

Total current Liabilities 72000

Stockholders Equity:

Common stock 776600

Retained earnings 535200

Total stockholders equity 1311800

TOTAL LIABILITIES & STOCKHOLDERS EQUITY

1383800

• BREAK EVEN POINT=Total Fixed Cost/ (selling price per unit-variable cost per unit)= 832800/(500-5)= 832800/295= 1682 units

• PAY BACK PERIOD=Investment/Retained Earnings=1000000/535200=1.87 years=1 year, 10 months and 13 days