Sugar Mill

M.com Finance Project On Sugar Mill 4th semester

A Project Report On Mamoon Sugar Mills Private Limited

Islamia University Bahawalpur Department Of Commerce




Words of Quran;

“OH! PROPHET SAY! IF OCEANS ARE CONVERTED INTO INK TO WRITE QUALITIES OF MY CREATOR, THEN WHOLE OCEANS WOULD CONSUME IN WRITING BEFORE IS QUALITIES COME TO AN END. AND EVEN IF WE PRODUCE THE LIKE OF INK WOULD INSUFFICIENT”.

(AL-KAHAF)



Sr. No. Contents1 Preface2 Acknowledgement3 Dedication3 Table of contents4 Table of Annexure5 Executive Summary

6 Introduction of company7 Location for plant8 Product Range9 Market Analysis10 Process flow11 Ratios Analysis 13 SWOT Analysis 14 Technical analysis15 Personnel Analysis16 Projected income statement

17 Projected Balance Sheet18 Projected Cash Flow Statement20 Suggestions and Recommendations



Project Managers…

Project Management is an integral part of M.com (Finance) program, because it gives us the practical knowledge of what we have learnt during our study period.

Now a day the business environment keeps on changing everywhere. New dimensions of business are coming before us. These dramatic and dynamic changes in business world require the specialties about the all aspects of business of today. Because of these requirements business knowledge became important and business education becomes the need of time. The person with latest knowledge can survive in this vast field.

But practical knowledge is also necessary along with the theoretical knowledge. This made the Project Management and Appraisal an integral part of M.com (Finance). One can see how the theories and knowledge are being practically implemented. This report is about the Sugar Mill. We prepared the financial data of company and this report carried the information about organizational, financial data, strengths and weaknesses of Sugar Mill.



We pay our humble gratitude, with humility and submission, to ALLAH, the Almighty, the Omniscient, the Omnipotent & the Omnipresent, who bestowed our potential to accomplish this task. The completion of this issue is, mere, the blessing of ALLAH and Holy Prophet Hazrat Muhammad (Saw).

Secondly, we must mention “Sir Javed Iqbal” for being kind enough to extend his baseline guidance in the completion of this project report.

We also thank everyone else including our respectable teachers and outspoken friends of the Department who helped in one way or another in the completion of this project.



TO OUR

PARENTS&

TEACHERSir Javed Iqbal

The Chairman Of Department Of Commerce



The sugar industry plays an important role in the economy of the country. It is the second largest industry after textiles. At the time of independence in 1947, there were only two sugar factories in Pakistan. The output of these factories was not sufficient for meeting the domestic requirements. The country started to import sugar from other countries and huge foreign exchange was spent on this item. Need was felt to increase the production of sugar. Keeping in view the importance of sugar industry, the Government setup a commission in 1957 to frame a scheme for the development of sugar industry. In this way the first sugar mill was established at Tando Muhammad Khan in Sindh province in the year 1961. At present there are 76 sugar mills operating in Pakistan. The Sugar industry employs over 75000 people, including management experts, technologists, engineers, financial experts, skilled, semiskilled and unskilled workers. It contributes around 4 billion rupees only under the head of excise duty and other levies to the Government are also paramount significance. The output of sugar as well as the production of sugarcane increased at an average rate 24 percent and 11.7 percent. But the increased out put could not meet the requirements



Mammon sugar mills is located at Hasilpur road for this purpose we acquire 400 canals. Our project has a capacity of producing 10000 bags per day in 3 shifts of 8 hours each. We purchase sugarcane as raw material from sadiqabad and qusoor @ 230 rupees per Mann we also purchase some chemicals which is used in production process.

We require heavy machinery from “Heavy Mechanical Complex’’ (HMC) our project includes 40% of equity and 60% debt. We obtained this debt from The Bank Of Punjab.Our main product is sugar and molasses and mud as by product. We sell sugar in 50 kg bags. We also sell molasses in Karachi and mud to the farmers they use it as fertilizers.



Name of the Project: Mamoon Sugar Mill

Location for our sugar mill is Hasilpur Road. The reasons for choosing this area are as follows.

This area is not classified under residential area and the City authority for industry location has approved it as an industrial state. So it is best for industry. Moreover here is no residential colony near so we will not find the problem to set up our plant there.

The main BWP City is near to this area so we can capture the market of the city. Moreover raw material and labor can be achieved from the city that is close so the high cost on getting labor and transport from other city can be saved.

BWP is situated between Multan, Rahim Yar Khan and SADIQABAD. Also a link with Hasilpur too. So establishing our plant there will be a great opportunity to capture the market of these cities too. Labor and raw material can also be achieved from these areas as these are related with agriculture sector.

As concerned with infrastructure, roads and all means of communication, BWP provides great opportunities. So that area insures us quick delivery and supply of material, communication and link with other markets. Better ways to communicate and well position of roads and infrastructure will help to enhance our goodwill in markets.

As our concerned product is related with agriculture sector and this area is purely an agriculture sector so raw material will be easily available. We don’t need to move far away for raw material. This will



save our cost. Low production cost will lead towards low per unit cost.

Facility of railway station is available there too. Receiving and forwarding the material through railway means can be proved beneficial for us.

By taking into account all the above reasons and facilities and considering the facilities that are related to that specific area we can prefer this area, perfect for becoming an industrial state. Only need to be taking a step that will lead our plant towards great opportunity for profit and goodwill.

Sugar

Our main product is sugar we produce white refined

sugar 10000 bags

Per day. We produce 8 kg sugar from 40 kg of

sugar cane.



Molasses

Our Sugar Mills also manufactures

molasses in bulk. It is also the main

product of our sugar mill.

Mud

We sell mud to farmers They use it as a fertilizer.

Installed Capacity of the Project:

The installed capacity of the project at 100% is 10000 sugar bags produced daily with 3 shifts in 24 hours. The duration of our production is 4 months.

PRODUCT SugarPRODUCTION CAPACITY 100%Sugar bag of 50 kg 10000Molasses in liter 1200Mud 50 kg bags 25000

Working days p.a. 120No. of Shifts per day 3



Estimated Production

2011 2012 2013a) Production of Suger 960 1,020 1,080b) Porduction of Molasses 115 122 130c) Muds 2,400 2,550 2,700

Estimated Cost of the Project:

We have decided in this report we have used different techniques that are necessary to make any investment decision. By working at this company we find so many useful insights about juice manufacturing sector. We have decided “Hsailpur Road” as location for plant. The Estimated cost of project is Rs.

Fig.1.3Fixed Cost 4,186,020000Initial Working Capital 178,980000Total 4,365,000000

Means of Finance:

Our means of finance is divided on Debt and Equity at 60:40. The long-term loan is 2,619,000 at the rate of 16% for 5 years and the remaining cost of project is invested two partners 1,746,000 equally.

Fig.1.4Means of FinanceDebt 2,619,000EquityCapital 1,746,000 Total 4,365,000Debt Equity Ratio 60:40



Name of Lander:

The Bank of Punjab Pakistan is the name of institute that provide us loan at the rate of 16%.

Name of Sponsors:

Muhammad Mudassir BasherSalman Saeed

Name of Civil Contractor:

We get this facility by Mr. Muhammad Yaseen. He Construct a building of our company and provide necessary information.

Address: Apna Home Designer Hasil Pur Road Bahawalpur.Contact Number: 0301-3334445 0301-3334443

Machinery Suppliers

Heavy Mechanical Complex (HMC)Telephone : 92-51-9270562 ( 4Lines ) 92-596-9314181

Fax : 92-51-9270560, 92-0596-9314202 , 9314203

Telex : 5607 HMC PK, 5512 HFF PK E-mail : [email protected]@hmc.com.pk [email protected] [email protected]



Implementation Schedule:

The sanction date of above proposed project is 17th May 2010 The legal formalities of the proposed project will be completed by 20th

June 2010 Civil work will start as soon as the legal formalities are fulfilled and the

loaned amount is obtained. Civil work will take the time period of approximately of 5 months and

will start from the 1st August 2010 At 1st June 2009 machineries will be ordered Delivery of machines will take 3 months and the machinery will be at site

at 5th September 2009 The machinery will be installed in at least 1 year and it will be ready to

start its trial once operations by the end of 1st September 2010 The trial once operations will take period of one months and it will end

by the end of 1st October the project will start its commercial operations from the 31st October 2010.



1) Current Ratio= Current Assets/Current Liabilities

2011 2012 2013

1.85 2.35 3.05 Interpretation:



An indication of a company's ability to meet short-term debt obligations; the higher the ratio, the more liquid the company is. Current ratio is equal to current assets divided by current liabilities. If the current assets of a company are more than twice the current liabilities, then that company is generally considered to have good short-term financial strength. If current liabilities exceed current assets, then the company may have problems meeting its short-term obligations. In the above case there is positive trend.

2) Quick ratio = Current Assets-(Ending inventory- Prepaid expenses- A/R) /Current Liabilities

2011 2012 2013

0.91 time 0.79 time 0.79 times

Interpretation:

A stringent test that indicates whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory. The acid-test ratio is far more strenuous than the working capital ratio, primarily because the working capital ratio allows for the inclusion of inventory assets. There is rapid Positive trend and then slightly negative trend as the ratio is decreasing.

3) Cash ratio= cash equivalent+marketable sec/current Liability.

2011 2012 2013

0.95 times 1.57 times 2.26times


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Interpretation:

The cash ratio measures the extent to which a corporation or other entity can quickly liquidate assets and cover short-term liabilities, and therefore is of interest to short-term creditors. In the above case there is increasing trend that shows a positive sign.

4) Gross Profit Margin = Gross profit/ sales

2011 2012 2013

65.66% 67.87% 68.17%

Interpretation:

The Gross income margin includes only Gross income in the numerator. In the above case there is increase from year 2011 to year 2013 in the Gross income margin percentage. Which show a favorable trend in gross profit margin.


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5) Operating profit margin = Operating profit/ sales

2011 2012 2013 65.53% 67.75% 68.05%

Interpretation:

The operating income margin include only operating income in the numerator. In the above case there is much increase from year 2011 to year 2013 in the operating income margin percentage.

6) Net Profit Margin = Net Profit/ sales

2011 2012 2013

35.77% 34.89% 36.00%

Interpretation:

This ratio gives a measure of net income Rs. Generated by each Re. of sale. While it is desirable for this ratio to be high. In the above case there is quick increasing trend which is very much favorable.



7) Debt/Equity Ratio = Total Long-term Debt/Equity

2011 2012 20130.59 0.20 0.13

Interpretation:

Debt is also very low hence there is very low risk involved in the business. The company can easily cover the debts.

Fig.1.34


Number of Years Net Proft Dep.

Amotrization

in/outflow

0 0 0 0 (100,000)

1

46,710

5,311

931

54,952

2

61,827

5,311

931

68,069

3

70,826

5,311

931

77,068

IRR 40%


Pay-Back Peroid

Total Investment 100,000

Total Inflow 194,089

2





Strengths

The company has always valued its employees as partner in progress. The company‘s intellectual capital is of great value to the company. These partners have always made a difference through their hard work, commitment and fresh ideas.

1. A very good culture. There is an environment of learning that allows people to work in teams and learn from one and other.

4. A very progressive management approach. Management always strives to adopt better methods and practices. Quality circles are formed to highlight problems, study them, and come up with workable solutions to improve operations

Weaknesses:

a) Lack of Entrepreneurshipb) Company newly formed

Opportunities

Consumption of sugar is increasing every year. It means increasing demand of company’s products which mean more growth opportunities.

Threats:

1. Manufacturing sugar is a fast growing business. Local players are entering into the business so competition is increasing. So it will become difficult in future to maintain good profit margin.



2. Increasing prices of raw material has caused the cost of production. Increased costs of transportation are also increasing the cost of doing business.

3. Increasing oil prices and energy crises in country has created problem for the company in the face of foreign companies. Cost of production is increasing on one hand and the company is unable to avail opportunities on international level.

4. Water pollution and air pollution may increase

5. WTO is a main threat for sugar manufacturers in Pakistan due to their heavy cost of production that is due to heavy sales taxes and other indirect taxes.

At the present rate of growth in the sugar industry by way of addition new sugar

mills seems to be very fast as about 12 sugar mills would come into operation in

1996-97. There would thus be a production surplus during 1997-98 through 1998-

99. Another 6 to 8 sugar mills are in advance stage of processing with various

Banks. These sugar mills include Raja, Qand Ghar, Madina, Sheikhoo, Seri etc.

Thus there will be shortage of sugar cane to feed all these mills and a need for

rationalization of the expansion of the industry.

Sugar industry is the second biggest industry of Pakistan first being textile. It

employs more than 30,000 workers and contributes Rs. 6380.395 million to the

GDP. In 1994-95 it has entered into the export field and earned Rs. 1204 million in



foreign exchange in 1993-94 by exporting 121,561 tonnes of sugar. At present the

industry has been faced with a number of problems. Some of these problems have

been briefly discussed in the following paragraphs

.LOCAL MARKET.

There is only 1 sugar mill working in Bahawalpur named ashraf sugar mills limited but the sugar usage in our country is very high so the production of sugar is not increasing as demand or need increasing. So its our advantage that there is only 1 competitor by our production we will not only fulfill the needs of our area but we can supply sugar in other areas & provinces as well.

Production in Pakistan during last 10 years.

Name of Sugar Mills Operatings In Bwp

Ashraf Sugar Mills LTDAshraf abad bahawalpurTel: 062-2870361-3Fax: 062-2870593



Demand of sugar in Pakistan

Table 4: PROJECTION OF DEMAND AND SUGAR PRODUCTION

CAPACITY 1998/99-2004/5

Year Population In Million

Domestic Consumption

in Tones

Projected Sugar Prod: Capacity In

Tones

1998-99 134.51 2959000 3530850

1999-2000

137.51 3025220 2414746

2000-01 140.94 3100680 3304360

2001-02 144.47 3178340 3304360

2002-03 148.08 3257760 3304360

2003-04 151.78 3339160 3304360

2004-05 155.58 4322760 3304360

Source: Government of Pakistan, Economic Survey, 1999-2000, Islamabad, 2000, Statistical Section P.07

Prices

Exe factory price per kg Whole sale price per kg Retail price per kg

56.7 60 63



Analysis of technical and engineering aspects is done continually when a project is being examined and formulated. Other types of analysis are closely intertwined with technical analysis.

The broad purpose of technical analysis is (a) to ensure that the project is technically feasible in the sense that all the inputs required to set up the project are available, and (b) to facilitate the most optimal formulation of the project in terms of technology, size, location, and so on.

Manufacturing Process

Sugarcane is a perennial herb belonging to the grass family. Native to tropical and subtropical regions of the world, this tropical grass is 10-24-feet tall. bears long, pointed leaves, and has several stalks. The segmented stalks have a bud at each joint and as the plant matures, small flowers appear.

PLANTING

Sugarcane cuttings are planted in fields by workers or mechanical planters. In order for the cane to grow, the seeds must be planted in well-drained soil. Typical cane soil is made of a mixture of silt, sand, clay particles and organic matter. Canes are spaced at least 4-feet apart and lined in rows and covered with soil. Fertilizers are applied from the time of planting up until the beginning of the ripening period. Cane fields are also routinely weeded to provide for optimum growth of the cane. Depending on the region where the crop is planted, cane seasons last from 8-22 months. In the United States, sugarcane is grown in Florida, Hawaii, Louisiana and Texas.



COLLECTING THE HARVEST

Mature canes are gathered by a combination of manual and mechanical methods. Canes are cut at ground level, its leaves are removed and the top is trimmed off by cutting off the last mature joint. Cane is then placed into large piles and picked up, tied, and transported to a sugar factory.

CLEANSING AND GRINDING

Stalks are thoroughly washed and cut when reaching the sugar mill. After the cleaning process, a machine led by a series of rotating knives, shreds the cane into pieces. This is known as "grinding." During grinding, hot water is sprayed on to the sugarcane to dissolve any remaining hard sugar. The smaller pieces of cane are then spread out on a conveyer belt.

JUICING

The shredded pieces of sugarcane travel on the conveyer belt through a series of heavy-duty rollers, which extract juice from the pulp. The pulp that remains or "bagasse" is dried and used as fuel. The raw juice moves on through the mill to be clarified.

CLARIFYING

Carbon dioxide and the milk of a lime are added to the liquid sugar mixture and it is heated to the boiling point, as the process of clarifying begins. As the carbon dioxide travels through the liquid it forms calcium carbonate, which attracts non-sugar debris (fats, gums, and wax) from the juice, and pulls them away from the sugar juice. The juice is then pushed through a series of filters to remove any remaining impurities.

EVAPORATION

The clear juice which results from the clarifying process is put under a vacuum, where the juice boils at a low temperature and begins to evaporate. It is heated until it forms into a thick, brown syrup.



CRYSTALLIZATION

By evaporating what little water is left in the sugar syrup, crystallization takes place. Inside a sterilized vacuum pan, pulverized sugar is fed into the pan as the liquid evaporates, causing the formation of crystals. The remaining mixture is a thick mass of large crystals, which is sent to a centrifuge to spin and dry the crystals. The dried product is raw sugar, still inedible.

REFINERY

Raw sugar is transported to a Cane Sugar Refinery for the removal molasses, minerals and other non-sugars, which still contaminate the sugar. This is known as the purification process. Raw sugar is mixed with a solution of sugar and water to loosen the molasses from the outside of the raw sugar crystals, producing a thick matter known as "magma." Large machines then spin the magma, which separate the molasses from the crystals. Crystals are promptly washed, dissolved and filtered to remove impurities. The golden syrup which is produced is then sent through filters to remove the color and water. What's left is a concentrated, clear syrup, which is again fed into a vacuum pan.

SEPARATION AND PACKAGING

Once the final evaporation and drying process is done, screens separate the different sized sugar crystals. Large and small crystals are packaged and shipped, labeled as white, refined, sugar.

SUGAR FACTS

REFINED white sugar is 99.9-percent sucrose.

WHITE sugar is pure sucrose, containing no preservatives or additives.



Process in diagram

List of Machinery

Mill House E.O.T. Crane & Gantry Cane Unloaders, Table Feeders Cane Cutters, Cane Levellers & Kickers Cane Carriers, Intercarriers with Chains, Slats. Bagasse Elevators complete Headstocks, Crown Pinions, Scrappers, Trash Plates, Coupling Bagasse Baling Presses All Types of Chains, Slats. Rakes, Sprockets Power House Crane & Gantry Roller







Requirement of Raw Material

Sugarcane

Sugar cane is our main raw material we purchase it from Sadiqabad and Qusoor the recent purchase price of sugar cane is 230 rupee per mann but its price may vary in future.



Chemicals

We also use chemicals as a raw material unless we cannot find the sugar in pure

form we purchase chemicals of rupees 100 per liter

sugar processing chemicals are anti-scalant sugar processing chemicals and

carbonate based sugar processing chemicals

sugar processing chemicals that includes microbiocides, defoamer chemicals and sugar colour treating chemicals. Also offers other chemicals like water treatment chemicals and effluent water treatment chemicals.


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Personnel analysis discusses number of employees working in mill.It tells about total numbers of employees working either technical or non-technical staff.Technical analysis shows that there one General Manager, one deputy general manager, 6 manager are working in sugar mill. There is 1 chief chemist 1 chief engineers 6 assistants managers 10 supervisor clerical staff is consist of 20 people, 10 peons ,5 sweeper and 2 gate keepers.



Financial statement Mamoon Suger Mill (Prt). Limited

Income Statement For the Year Ended Dec 31,_______________

For the Year ended 2,01

1 2,01

2 2,013

operating efficiency assumed Rs. Rs. Rs.

Sales 4,995,686

6,556,838

6,947,126

Cost of good Sold:.

Raw material consumed 1,613,200

1,714,475

1,815,870

Labour 10,238

11,261

12,387

Manufacturing expense 80,867

82,919

84,972

Depreciation 313,885

313,885

313,885

Cost Of Goods Manufactured 2,018,189

2,122,540

2,227,114

Add: Beginning Inventory 0 302,728

318,381

Less: Ending Inv. 15% 302,728

318,381

334,067

Cost of Goods Sold : 1,715,461

2,106,888

2,211,428

Gross Profit 3,280,226

4,449,951

4,735,699

Operating Expenses

General and Admin. Expenses 5,003

5,504

6,054

Selling Expenses 1,760

1,936

2,130

Total Operating Expenses 6,763

7,440

8,184

Operating Profit 3,273,462

4,442,511

4,727,515

Other Income

Sale of Wastge /Electricty 40000 44000 48400

Total Other Income 40000 44000 48400

Profit before Non-Oprating Expenses 3,313,462

4,486,511

4,775,915



Non-Operating Expenses

Financial Exp. 105,924

362,237

276,334

Amortization of preproduction exp. 265

265 265

Workers Participation fund (5%) 163,673

222,126

236,376

Workers Welfare Fund (2%) 65,469

88,850

94,550

Total Non-operating Exp. 335,332

673,478

607,525

Net Profit before Tax 2,978,131

3,813,033

4,168,390

Tax 1,191,252

1,525,213

1,667,356

Net Profit after Tax 1,786,878

2,287,820

2,501,034

Mamoon Suger Mill (Prt). LimitedProjected Balance SheetAs On 31 Dec,_______________

As on 2010 2011 2012 2013

Rs. Rs. Rs. Rs.

Owners Equity & Liabilities

Capital & reserves:

Capital 1,746,000 1,746,000 1,746,000 1,746,000

Retained earning 0 1,786,878 4,074,698 6,575,733

Sub Total 1,746,000 3,532,878 5,820,698 8,321,733

Long Term Liabilities

The bank of Punjab loan 2,619,000 2,095,200 1,571,400 1,047,600

Sub Total 2,619,000 2,095,200 1,571,400 1,047,600

Total Debt & Equity 4,365,000 5,628,078 7,392,098 9,369,332

Current liabilities

Account Payable 20% of Material Used 26,086 322,640 342,895 363,174

Notes Payable 96,792 102,869 108,952

short term Loans @ 75% 749,353 983,526 1,042,069

Workers Participation fund (5%) 163,673 222,126 236,376

Workers Welfare Fund (2%) 0 65,469 88,850 94,550

Accrude expense 0 399,655 566,511 615,254

Current Maturity of Loan 261,900 523,800 523,800

tax payable 0 0 0 0



sub total 26,086 2,059,482 2,830,576 2,984,175

Total Equity & Liabilities 4,391,086 7,687,560 10,222,674 12,353,507

Assets

Fixed Assets

Fixed Assets 4,184,959 4,184,959 3,871,074 3,557,190

Less:Acc. Dep. - 313,885 313,885 313,885

Net Fixed Assets 4,184,959 3,871,074 3,557,190 3,243,305

Pre-Production Exp. 1,061 1,061 796 530

Less Amortized 0 265 265 265

Net Pre-Production Exp. 1,061 796 530 265

Sub total 4,186,020 3,871,870 3,557,720 3,243,571

Current Assets

Cash 78,657 1,937,998 4,422,880 6,737,474

Account Receivable 20% 22,200 999,137 1,311,368 1,389,425

Inventory 86,953 695 696 697

Packaging materials 10% 2,560 161,320 171,448 181,587 Finished Goods Inventory 15% of Production 2,220 302,728 318,381 334,067

Stores & Spares 2,920 403,300 428,619 453,968

Marketable Securities 9,556 10,512 11,563 12,719

sub total 205,066 3,815,690 6,664,954 9,109,937

Total Assets 4,391,086 7,687,560 10,222,674 12,353,507

Mamoon Suger Mill (Prt). LimitedProjected Cash Flow Statement



For The Year Ended Dec 31,______

For the Year Ended 2010 2011 2012 2013

Rs. Rs. Rs, Rs.

Sources

Oprating Profit 0 3,273,462

4,442,511

4,727,515

Add:Dep. & Amort. 0 314,150

314,150

314,150

Equity 1,746,000

Other Sources

Long Term Loans 2,619,000

Inc/(dec) in Current Liabilities 26,086

2,033,396

771,094

153,599

Total Sources 4,391,08

6 5,621,00

9 5,527,75

5 5,195,26

4

Uses

Fixed Asset 4,184,959

Pre-Production Exp. 1,061 265 265 265

Long Term Loans 0 261,900

523,800

523,800

Re-Payment of:. 0

Financial Exp. 0 105,924

362,237

276,334

Workers Participation fund (5%) 163,673

222,126

236,376

Workers Welfare Fund (2%) 65,469

88,850

94,550

Tax Paid 0 1,191,252

1,525,213

1,667,356

Profit Distribute 0 0 0 0

Inc/(dec) in Current asset 126,409

1,751,284

364,381

130,389

Total 4,312,42

9 3,761,66

8 3,042,87

2 2,880,67

0

Net Cash Inflow/(Outflow) 78,657 1,859,341 2,484,882 2,314,594

Balance Opening 0 78,657 1,937,998 4,422,880

Balance Closing 78,657 1,937,998 4,422,880 6,737,474



Cost Of Land

Mamoon Shugar Mill

Kanals Marlas Cost per marla Total Cost Rs.

Land 400 8000 55,000 440,000,000

Cost of Registration 1.00% 4,400,000

Stamp Duty of Cost of Land 2% 2.00% 8,800,000

comitte fee 1.00% 4,400,000

CVT 4.00% 17,600,000

Development Charges of Cost of Land 2.00%

8,800,000

Total 484,000,000

Cost Of Building & Civil Works Factory Building Area Sq ft. Cost Per Sq. Ft Cost

GM Office 600 700 420,000

Account Manager 600 700 420,000

Financial Manager 600 700 420,000

Chemical manager 600 700 420,000

production manager 600 700 420,000

purchase manager 600 700 420,000

labour room 1,000 500 500,000

ware house 40,000 350 14,000,000

guest room 800 700 560,000

boundry wall (ft) 1,922,600 100 192,260,000

Shade & Structure 208,000 80 16,640,000

Total 226,480,000

electricity (internal) 9,000,000

Fee of Civil Contracture 4.50% 10,191,600

Total 19,191,600

Total Cost 2,176,000 245,671,600



Machinery Requried

Item Capicity Cost Total Cost

Machinery Requried 1

2,850,000,000 2,850,000,000

Installation Charges of Machinery 150,000,000

Total 3,000,000,000

Other Machinary Requirement

Electric Generator 1

600 KVA

2,000,000 2,000,000

Total 2,000,000

Total Local Machinary 3,002,000,000

Furniture and Fixture

Description qty Cost/qt

y Total Tables 15 8,000 120,000

Revolving Chairs 10 5,000 50,000 Chairs/plastic 80 1,000 80,000

Total 250,000


http://www.go4pakistanbusiness.com/show/members/latest/inqdetails.asp?objid=194572


Office Equipment

Item Cost/Item Total

Computer HP 15

45,000

675,000

AC Split 10

35,000

350,000

Printers 4

12,500

50,000

Scaners 2

5,500

11,000

Fax Machine 2

12,000

24,000

Photocopier 1

75,000

75,000

1,185,000

Cost of Vehcials

Name Of Vechial No. of Vechial

Cost per vechial Total cost

Toyota GLI Second Hand 1 1,500,000 1,500,000

Mehran 7 350,000 2,450,000

Buses 2 1,350,000 2,700,000

Shezhore Trucks 10 600,000 6,000,000

Bolan 3 370,000 1,110,000

Total 13,760,000



Mamoon Suger Mill (Prt). Limited ESTIMATED INITIAL NETWORKING CAPITAL

Rs. CURRENT ASSETS

Cash 78,657,000

Account Receivable 20% 22,200,000

Inventory 86,952,500

Packaging materials 10% 2,560,000

Finished Goods Inventory 15% of Production 2,220,000

Stores & Spares 2,920,000

Marketable Securities 9,556,000

Total 205,065,500

CURRENT LIABILITIES

Account Payable 20% of Material Used 26,085,750

-

Total Current Liabilities Total 26,085,750

INITIAL NET WORKING CAPITAL 178,979,750



PRE-PRODUCTION EXPENSES

Project examination fee 0.50% 13,095

Legal Documentation fee 0.25% 6,547

Commitment Charges 1.50% 39,285

Travelling and Other Mix Expenses on constraction 500,688

WAPDA 500,000

Office, Fuel, Telephone, Fax, Networking System,Entertainment & other Misc. Exp. 1,375

Total Pre-Production Exp. 1,060,991

Salaries

Salary Annual

per Month Cost

a) Administrative Salaries Nos (Rs.) (000)

GM 1 80,000 80,000

DGM 1 65,000 65,000

Managers 6 45,000 270,000

Chief Chiemst 1 40,000 40,000

Chief Engieener 1 40,000 40,000

Assistant Managers 6 30,000 180,000

Supervisors 10 15,000 150,000

Clarical Staff 20 14,000 280,000

peons 10 8,500 85,000

Sweepers 5 6,500 32,500

Gatekeeper 2 6,500 13,000



We visited our nearest sugar mill named Ashraf sugar mills on 11th may 2010 at 10:00 am. Where we meet with Muhammad Altaf he is a controller Finance in sugar mill. He gave all the necessary information’s regarding to our project. He also visited us the machinery of sugar mill.

.





Al-Humra Furniture Works, Bahawalpur.

Saeed Computer’s, Bahawalpur.

Noor’s High Tec Computer’s, Bahawalpur.

Grace Computer’s, Bahawalpur.

Khan Computer’s, Bahawalpur.

Gayass Electronics, Bahawalpur.

Adnan & Co. Bahawalpur.

New National Electronics, Bahawalpur.

Muhammad yaseen Apna Home Designer, Bahawalpur.

Dubai Copier & Fax Machine, D.I.G Chowk, Bahawalpur.

Google.com

The Bank Of Punjab

Muhammad Altaf Controller Finance Ashraf Sugar Mills

Bahawalpur.

Heavy Mechanical Complex (HMC)




Documents

Sugar Mill