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SMEDA Poultry Farm

SMEDA Poultry Farm

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Pre-Feasibility Study

LAYER FARM
(5000 Birds)

Small and Medium Enterprise Development Authority
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE Waheed Trade Complex, 1 Floor , 36-Commercial Zone, Phase III, Sector XX, Khayaban-e-Iqbal, DHA Lahore Tel: (042) 111-111-456, Fax: (042) 5896619, 5899756 helpdesk@smeda.org.pk
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REGIONAL OFFICE PUNJAB Waheed Trade Complex, 1st Floor, 36-Commercial Zone, Phase III, Sector XX, Khayaban-e-Iqbal, DHA Lahore. Tel: (042) 111-111-456 Fax: (042) 5896619, 5899756 helpdesk@smeda.org.pk

REGIONAL OFFICE SINDH 5TH Floor, Bahria Complex II, M.T. Khan Road, Karachi. Tel: (021) 111-111-456 Fax: (021) 5610572 helpdesk-khi@smeda.org.pk

REGIONAL OFFICE NWFP Ground Floor State Life Building The Mall, Peshawar. Tel: (091) 9213046-47 Fax: (091) 286908 helpdesk-pew@smeda.org.pk

REGIONAL OFFICE BALOCHISTAN Bungalow No. 15-A Chaman Housing Scheme Airport Road, Quetta. Tel: (081) 831623, 831702 Fax: (081) 831922 helpdesk-qta@smeda.org.pk

April, 2002

The content of the information memorandum does not bind SMEDA in any legal or other form. the content of this memorandum should not be relied upon for making any decision. The prospective user of this memorandum is encouraged to carry out his/her own due diligence and gather any information he/she considers necessary for making an informed decision. DOCUMENT CONTROL Document No. Therefore. All the material included in this document is based on data/information gathered from various sources and is based on certain assumptions. 2002/ Rev 1 . 2002 Library Officer 2 PREF-19/April. Although. the contained information may vary due to any change in any of the concerned factors. Revision Prepared by Approved by Issue Date Issued by PREF-19 1 SMEDA-Punjab GM Punjab April.Pre-Feasibility Study Layer Farm (5000 Birds) DISCLAIMER The purpose and scope of this information memorandum is to introduce the subject matter and provide a general idea and information on the said area. and the actual results may differ substantially from the presented information. investment or otherwise. due care and diligence has been taken to compile this document. SMEDA does not assume any liability for any financial or other loss resulting from this memorandum in consequence of undertaking this activity.

The rent varies between Rs 0. the layers are sold in the market as culled birds. The average availability of protein is 11 grams a day. poultry sheds are available on rent basis. The selling price of these birds is determined on per bird basis. On completion of 18 weeks. one layer lays about 300 eggs per laying season of 52 weeks.Pre-Feasibility Study Layer Farm (5000 Birds) 1 1. which is far less than the recommended daily dietary protein consumption of 26 grams according to the World Health Organization standards.1 INTRODUCTION Project Brief Layer farm business is an agro-based project.5 to Rs 1 per square feet depending upon the location and facilities at the farm. This can be started in both rural and semi-urban areas. Day old chicks of Layer are initially reared for a period of 18 weeks. After the completion of laying period. These sheds have complete required facilities and equipment. The following table shows the per capita consumption of eggs and poultry meat in 1999: 3 PREF-19/April. According to the current industry practice.2 Opportunity Rationale Layer farming is a profitable business as the produce of the farm provides high quality animal protein which is daily requirement of the human body. 1. On an average. Figure 1-1: Daily Protein Consumption Recommended Daily Dietary Protein Allowance Vs Existing Availability 1991-2000 30 25 Grams 20 15 10 5 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Available per Day Recommend Daily Dietary Allowance The figure above shows the shortage of protein availability in the country. The demand for eggs is increasing with the increase in the population. 2002/ Rev 1 . Animal Protein is more valuable than that of plant protein. the birds start laying eggs for the period of next 52 weeks. Major portion of the cost includes bird feed.

In 2000.261 million eggs. has increased at a growth rate of 3% during the last decade. It included the poultry feed mills. The operational capacity of hatcheries and feed mills is reported to be far below its total installed capacity. 4.4 Proposed Capacity 5000-birds is the minimum economic size to start a layer farm. 1.000 is required as working capital. Layer population however.5% of the total egg production comes from Farm eggs and the rest from Rural Poultry (Desi) eggs. approximately 38. These birds are kept for sixteen months. breeder. 2 CURRENT INDUSTRY STRUCTURE As of the year 1999-2000. layer. the poultry industry reports huge capacity under-utilization. hatcheries.055 million. However. and broiler farms and the related infrastructure. which will be used for purchasing day old chicks and raw material (feed & vaccines) etc. Egg availability in Pakistan has been growing at an annual average rate of 4% during the years 1992 to 2000.3 kg 1.5 months and laying period of 12 months.3 Total Project Cost A Poultry farm with a population of 5. 2002/ Rev 1 .509 layer farms produced 3.000 birds started in a rented shed requires a small capital investment of about Rs 62. According to studies. 4 PREF-19/April. A sum of about Rs 288. the investment in poultry sector was about Rs 35. which includes a rearing period of 4.000 for purchasing farm machinery and equipment.) Poultry Meat Consumption 36 2.Pre-Feasibility Study Layer Farm (5000 Birds) Table 1-1: Per Capita Consumption of Eggs and Poultry Meat Per Capita Eggs (Nos. where the operational and fixed costs are justifiable.

2 11.779 Million 13.0 4.0 Population (Mill.6 13.509 15.0 14.19 99.0 12.36 Million 3.796 322. Birds) 14.202 8.0 0.463 ‘000’ Tons 13.94 184.0 10.6 13.68 5.7 10.0 13.55 303.261 5. 2002/ Rev 1 .535 139.6 11.0 8.0 10.5 12.Pre-Feasibility Study Layer Farm (5000 Birds) Figure 2-1: Layer Population 1992-20001 Layer Population(1992-2000) 16.732 538 20.9 1992 1993 1994 1995 1996 1997 1998 1999 2000 Table 2-1: Poultry Statistics 1999-2000 2 Poultry Statistics (1999-2000) Poultry Farms No of layer farms Broiler farms Breeder farms Total Farms Birds Produced/Maintained Birds Layer Broiler Breeder Stock Rural Poultry Total Birds Produced Poultry Products Farm eggs Rural Poultry (Desi) eggs Total Eggs Production Poultry Meat Culled Birds (Layer and Breeder) Broiler Rural Poultry (Desi) Total Meat Produced 1 2 Numbers 4.0 6.935 Source: Agriculture Statistics Source: Pakistan Poultry Research Institute 5 PREF-19/April.0 2.604 169.

alert and bright eyed. Bamboo baskets. Egg is perishable commodity and cannot be stored for longer period of time. Rate of egg production.1 Purchase of Day Old Chicks The chicks should be of uniform size. and pitch board trays.21 per dozen eggs sold. The demand for eggs is increased during the winter season and. The pre-feasibility study has taken brooding expense at Rs 1 per bird during the rearing period. The birds may need more feed in winter and less feed in summer. collapsible cardboard boxes and in plastic trays are the containers used for transporting eggs. Coal or sawdust is burnt for supplying heat at the stage of brooding in the poultry farm. Of these. Season and weather condition. wooden boxes.3 Feeding The requirement of feed during laying depends on the rate of egg production and the body weight of layer birds. The eggs are more liable to be damaged during transportation. Bamboo baskets and wooden boxes are the safest way. The actual feed consumption may be influenced by several factors as follows: • • • Body weight of the bird. Improved and high yielding chicks should be purchased from reputed farms. The shelf life of egg is short during summer (1 week) and long in winter season (4 weeks). the prices of eggs are also increased. as a result of that. active. 4. The layer is ready to lay eggs in July/August. 4 FARM MANAGEMENT 4. layer farm is recommended to start in the month of February or March. Eggs should be transported in proper containers. 6 PREF-19/April. The shank or leg covering (skin) of healthy chicks should appear bright and shiny. The profits and losses in marketing of eggs depend on the proper transportation methods.Pre-Feasibility Study Layer Farm (5000 Birds) 3 MARKETING Layer starts giving eggs at the age of 15 weeks. 2002/ Rev 1 . Usually. Retail buyers are also available who will directly purchase eggs from the farm. Weighted average sale price at the farm gate for the year has been taken as Rs. During summer months the flock is under severe stress then it is suggested to temporarily change the ration to a higher level of protein content.2 Brooding Proper brooding temperature is required to keep the chicks in comfort during rearing period when they are sensitive to cold and need some artificial heat source to maintain their normal temperature. 4. Eggs are packed in trays and can be sold in bulk to the wholesale markets in the urban cities.

comfortable and safe. The medicine can also be mixed in the water and also through eye. Therefore. 2002/ Rev 1 . ricehusk and sawdust are generally used for making the litter. Generally the feed intake increases with an increase in egg production. ft. Caked or moldy material should be removed and refilled with fresh materials. 4. 200 feeders are enough. Generally. It should be dry and free of moulds.8 Litter Litter is spread on the floor to prevent the direct contact with the floor. 4. 4. Irregular lighting results in drop in egg production. reasonably warm in winter and cool in summer. 4.9 Vaccination Vaccination can be applied to chicks through injections. Ideally. Each bird should be provided a floor space of about 2 sq. Adequate lighting boosts up egg production by 5 to 10 percent. 4. caloric value of feed etc.7 Drinkers Proper drinking space should be provided to birds.5 Feeders It is essential to provide adequate feeder space. Using new litter for each flock is good for raising disease-free broiler.6 Lighting Light affects growth and reproduction of poultry birds by different physiological actions. It is necessary to provide extra water during summer and extremely hot weather. The duration of the light period should not be decreased during laying period. Extensively wet and dusty litter should also not be used.Pre-Feasibility Study Layer Farm (5000 Birds) • • Health and physical condition of the bird. Average vaccination cost per bird usually varies between Rs 2-4. Straw. 4. Lighting encourages the birds to eat more feed. durable. Vaccination is provided to the birds once in the rearing period and once in the laying period. for 5000 birds. two pan type feeders are sufficient for 50 birds. The feasibility study has therefore taken 100 large drinkers and 50 small drinkers. Litter can also be resold in the market. The feasibility study has taken vaccination cost at Rs 3 per bird.4 Housing The poultry house should be well ventilated. The poultry house should be cheap. more of which will lead to better growth and more eggs production. 7 PREF-19/April. Feed quality such as protein contents. one large drinker is sufficient for 50 birds.

After the rearing phase is over.10 Fumigation & Spraying It is essential to disinfect all equipment and walls of the broiler house.5 4. During the rearing phase of 4. Potassium Permanganate.Pre-Feasibility Study Layer Farm (5000 Birds) 4.5 4. the rearing phase and the laying phase.5 0 4. In the feasibility study the culled birds are sold at a rate of Rs. it is fumigated with Formaldehyde Gas.5 0 4. which is produced by putting Formaline on Potassium Permanganate.12 Rearing and Laying Schedule The cycle of one flock of layer farm is divided into two distinct phases.5 6. Poor layer should be culled to minimize the cost of production.5 4.5 7.5 months.5 6. 2002/ Rev 1 .5 11. The rooms should be white washed and sprayed before the arrival of birds.5 7.5 7.5 11.5 11. So. the revenues and costs occur in the form of cycles. Carbolic Acid and Formaline. the birds consume feed and are non-productive.5 0 4. the birds start laying eggs and remain productive for the next 7. To sanitize the layer farm from germs and insects. 4. Disinfectant solution can be prepared with Phenol. A solution of Sodium Hydroxide/Caustic Soda with warm water can also be used to clean the house.5 months. The schedule for this calculation for the first ten years of operation of the farm is shown in Table 4-1.5 0 1 1 0 1 1 0 1 1 0 1 1 0 1 1 0 1 1 0 1 8 1 2 1 1 2 1 1 2 1 1 2 2 0 2 2 0 2 2 0 2 2 2 1 2 2 1 2 2 1 2 2 2 0 2 2 0 2 2 0 2 PREF-19/April.5 6. 4. 20 per bird. The rooms should be sealed for 30 minutes after the fumigation so that the gas infiltrates in every corner of the room.11 Culling Culling is the procedure of selection and rejection of unproductive and poor producers.5 7. Table 4-1: Schedule for calculation of Revenues and Expenses Year Rearing Laying Months Months Birds Sale Frequency per year Birds Litter Litter Spray Vaccination Purchased Sale Purchased Cost Cost 1 2 3 4 5 6 7 8 9 10 4. Culling is a very important job for running layer farm profitably. The birds that have laid well for short period but have stopped laying for one reason or another should be culled out.

List of the required farm equipment is given in Table 6-1: Table 6-1 Farm Equipment Farm Equipment Brooders Drum Heaters Drinkers (Small) Drinkers (Large) Feeders Nests Shifting Box Total Unit 10 1 50 100 200 50 5 416 Unit Cost Total Cost 450 4.000 125 25. 2002/ Rev 1 .300 1.000 26 1.800 9.000 9 PREF-19/April.500 1.200 60 3. The feasibility has taken 2 attendants. each attendant will be paid a monthly salary of Rs 2.000 62.500. drinking and handling the birds. 6 FARM MACHINERY 6. Two persons are sufficient to look after the 5000 birds.000 180 18.1 Farm Equipment Various types of farm equipment are needed for feeding.200 1.Pre-Feasibility Study Layer Farm (5000 Birds) 5 MANPOWER REQUIREMENTS One person can handle 3000 birds easily.

2 Suitable Locations 10. Generally. these sheds are located along the roadsides around the cities and rural areas.1 Recommended Mode for Acquiring Land It is recommended that the proposed project should be started in a rented shed.ft (Rs) Total Building Rental Cost (Rs) per month 7.ft/bird Store Room Rooms for Guard and Workers Pavement/Driveway Required Area (Sq. 2002/ Rev 1 .000 64 144 510 Total Project Space Requirement Rental Cost/Sq.Pre-Feasibility Study Layer Farm (5000 Birds) 7 LAND & BUILDING 7. Setting up a farm at an isolated place will minimize the risk of disease.718 Sub-urban and rural areas around the major cities of the country are recommended for starting a layer farm. This option will help us to save on the capital cost required for constructing new sheds. the rate prevailing in the market is around Rs 1 per square feet.ft) 10. Table 7-1 Space Requirement Space Requirement Shed Space @ 2 Sq. Normally. 7.3 Infrastructure Requirements • • • • Road Electricity Water Drainage of rain water 10 PREF-19/April.718 1 10.

62.230 350.230 Rs.616 288.614 128. 2002/ Rev 1 .69% 570.000 62.Pre-Feasibility Study Layer Farm (5000 Birds) 8 PROJECT COST Table 8-1: Total Project Cost Project Costs Machinery & equipment Total Fixed Costs Raw material inventory Prepaid building rent Total Working Capital Total Project Cost Table 8-2: Financial Plan Initial Financing Debt Equity Table 8-3: Project Returns Project IRR NPV (Rs) Payback Period (years) 34.84 50% 50% Rs. in actual 175.000 159.986 6.115 11 PREF-19/April.115 175.

12 PREF-19/April. Some times the epidemic diseases results in heavy mortality of up to 25%.Pre-Feasibility Study Layer Farm (5000 Birds) 9 • KEY SUCCESS FACTORS Farm management Professional farm management is the key success factor to increase the birds productivity. Proper vaccination and medication is very helpful to reduce the mortality loss up to 5%. Egg is a perishable commodity and cannot be stored for a long time at the room temperature. • Market Information Sale price of eggs fluctuates during a year. the sale price of eggs is lower in summer season and higher in winter season. It needs to be either sold within short time or has to be stored at a cool temperature. This will help the entrepreneur to negotiate well the sale price of eggs. The entrepreneur should be well aware of this price fluctuation. The prices of eggs go up in winter season as the demand is increased. • Vaccination and Medication Mortality is the most critical component in determining the viability of a Layer farm. • • Disease Shelf life Mortality is the most alarming threat to the viability of the farm. The farm labor should be experienced enough to look after the biological/disease matters of the farm. 10 THREATS FOR THE BUSINESS • Price fluctuations in the market Egg prices are determined by supply and demand phenomenon in the market. Generally. Timely feeding and vaccination is only possible if some person is available at the farm 24 hours a day. 2002/ Rev 1 .

9 6 1 5 6 1 .3 8 1 7 5 5 .5 2 3 9 3 .7 6 9 1 3 .0 0 0 5 .9 7 6 1 8 0 .0 9 1 1 0 9 .1 5 0 1 .3 6 2 1 9 0 .7 0 0 1 4 8 .0 1 8 1 2 8 .8 4 0 8 1 4 .1 5 9 .7 5 7 3 .7 0 0 3 .8 1 3 .4 3 5 1 5 6 .0 2 7 1 .2 3 5 .4 9 6 Y ear 7 2 .0 8 2 8 0 .5 1 0 .2 0 0 2 8 .2 0 0 3 7 .8 5 6 .6 9 7 1 .0 1 2 .2 0 4 1 .9 3 6 .7 0 4 .1 5 0 1 .6 2 8 2 9 4 .1 9 9 1 8 0 .7 8 8 2 .7 9 9 2 6 0 .7 9 2 (6 0 .0 3 8 7 1 3 .5 8 7 6 6 .5 9 1 1 7 .9 4 4 1 0 .8 8 9 1 7 8 .8 6 8 6 9 .1 7 4 1 .3 8 8 4 4 7 .2 5 0 2 .6 1 3 3 9 5 .7 9 8 6 .6 4 5 .4 1 2 1 6 6 .8 9 0 1 .0 8 2 1 6 4 .0 8 2 1 .6 5 2 1 9 .5 7 7 2 .9 4 1 ) 2 6 7 .0 0 0 5 .2 0 0 2 0 .3 5 9 1 .7 2 1 .7 4 0 .2 8 6 7 2 .5 5 2 6 .2 5 7 .5 5 1 7 6 .1 1 3 2 9 1 .5 9 1 ) 8 3 .5 1 8 4 6 .7 6 3 1 0 9 .9 2 5 .1 2 7 2 9 .4 4 0 6 .7 3 1 1 .1 5 6 2 .7 3 2 6 8 .2 9 0 4 3 4 .7 0 0 6 .2 0 6 7 .5 0 0 2 4 .3 4 6 .5 1 4 .4 4 6 2 5 .1 6 3 1 .2 0 0 2 8 .8 2 3 3 0 6 .7 1 0 1 9 9 .3 6 8 .0 6 8 (3 9 8 .3 7 8 8 4 .3 5 1 ) (2 1 7 .2 7 0 3 4 5 .3 8 3 .9 3 6 .5 1 7 1 3 .3 4 9 2 8 .0 7 8 3 .2 0 0 1 7 .0 7 5 8 8 .2 8 7 Y ear 5 2 .5 8 9 2 7 .9 3 0 6 .1 4 2 .4 3 6 .3 6 9 8 5 .0 5 8 .8 7 6 .Pre-Feasibility Study Layer Farm (5000 Birds) 11 FINANCIAL ANALYSIS 11.6 8 4 .4 6 0 2 .1 0 5 .0 0 0 2 .0 3 6 3 .4 5 5 4 2 6 .4 0 6 7 .5 2 6 1 9 9 .4 0 5 1 3 5 .1 2 1 7 6 .3 6 2 4 .5 4 6 .0 5 0 Y ear 9 5 .8 2 4 6 .4 6 8 Y ear 4 2 .5 7 8 1 .1 Projected Income Statement P R O J E C T E D IN C O M E S T A T E M E N T Y ear 1 S a le s C o st o f g o o d s s o ld R a w M a te ria l P a yro ll (P ro d u c tio n S ta ff) B ro o d in g E x p e n se T o ta l G r o s s P r o fit O p e r a tin g E x p e n s e s L itte r C o s t S p ra y C o s t F ix e d e le c tric ity A d m in istra tiv e O v e rh e a d s D e p re c ia tio n M o rtility L o s s T o ta l O p e r a tin g P r o fit N o n -o p e r a tin g E x p e n s e s F in a n c ia l C h a rg e s o n R u n n in g F in a n c e B u ild in g R e n t T o ta l P r o fit B e fo r e T a x T ax P r o fit A fte r T a x R e ta in e d E a rn in g s b e g in n in g o f ye a r R e ta in e d E a rn in g s e n d o f ye a r 1 .2 0 0 3 2 .8 4 1 6 3 .4 3 7 .2 0 0 2 4 .6 0 7 1 4 1 .0 8 0 7 .6 2 1 1 .4 0 0 7 .4 5 1 (1 8 1 .1 5 0 1 6 4 .6 1 6 in R s Y ear 10 3 .3 8 3 .5 0 8 8 8 .1 8 8 6 6 6 .3 2 8 2 7 .7 6 9 1 3 7 .5 8 4 .5 6 2 6 . 2002/ Rev 1 .3 2 9 .5 9 5 1 .3 4 8 2 .4 6 1 1 0 9 .6 7 8 .5 9 1 ) (2 1 7 .0 4 7 2 1 8 .4 0 6 6 .1 8 2 1 .3 5 1 ) (1 8 1 .1 4 2 .1 6 1 .9 1 7 6 .2 0 0 3 2 .4 2 6 7 .2 9 3 6 .4 0 6 8 3 2 .6 8 7 Y ea r 3 2 .0 2 6 .7 8 8 1 .5 9 5 3 8 .2 2 8 .9 5 6 ) 5 .8 0 1 1 0 4 .6 0 5 7 2 .7 5 2 1 .8 0 8 1 3 1 .5 9 9 .1 9 9 2 .8 3 6 1 .1 0 1 1 .3 3 4 1 6 8 .5 6 4 .9 1 2 .0 3 6 1 .8 4 7 5 1 .5 2 6 6 0 .4 5 8 5 .7 5 7 2 .2 1 0 2 .7 6 3 .0 5 4 2 .6 1 6 1 5 6 .7 9 8 1 .5 4 0 6 9 .5 3 1 5 .6 8 3 7 0 4 .3 4 4 6 6 6 .0 2 4 1 9 0 .6 4 7 2 .8 1 8 5 .5 2 6 1 .2 0 0 2 3 .9 1 3 1 .7 8 5 4 .0 7 8 1 .3 9 2 6 .3 6 1 Y ear 2 1 .9 4 1 ) 1 1 8 .6 3 4 (2 1 7 .4 9 4 3 7 .3 8 2 6 .1 2 7 2 9 4 .2 5 6 2 0 5 .5 0 1 .7 3 7 1 .5 2 8 8 6 .0 4 0 1 4 .8 4 8 4 3 .3 7 8 2 9 .7 0 0 2 .1 6 7 1 .9 3 2 1 3 0 .7 1 0 4 .5 9 1 ) (3 9 8 .7 5 0 .8 2 3 1 9 2 .8 3 4 .6 4 0 Y ea r 6 3 .5 9 1 ) (2 1 7 .5 2 6 9 0 5 .9 5 0 .9 7 6 5 2 3 .3 5 8 1 7 2 .3 5 0 4 2 .1 3 8 1 0 .3 5 4 Y ear 8 2 .0 9 2 .4 5 5 1 2 .6 2 1 1 7 2 .6 6 3 .5 3 9 4 2 6 .9 2 5 .2 5 0 1 .6 2 5 2 6 .7 3 3 6 .0 3 3 1 .1 6 4 .4 9 5 13 PREF-19/April.0 1 2 .0 0 0 7 .5 9 0 .4 3 5 5 .3 5 8 3 8 8 .0 2 4 2 .8 9 4 3 1 .8 4 9 .2 0 0 2 4 .5 9 0 .8 7 8 5 6 .0 0 0 1 .5 2 6 8 .3 2 8 2 6 7 .0 3 9 3 5 .0 6 1 6 .3 5 8 1 .7 5 9 .

539 6.520 (329.292 10.200 75.845 10.557.000 (77.000) (175.722) 77.163 1.279 10.138 1.014) 3.292) 141.734) (181.799) (521.722) (85.591) 6.814 10.518 1.078 461.722) 156.628 1.807 115.614) (217.031.Pre-Feasibility Study Layer Farm (5000 Birds) 11.894 (47.863) 7.024 (199.207 1.614) (159.013.279) (528.525.200 6.516 (62.799 (148.976 (190.876.200 6.090.881 0 0 0 1.614 401.976) 1.292) 741.279) 135.031.302 562.208) 1.702 447.350 131.000) (62.630) 132.351) 6.722) 10.141) (201.200 (125.627) (193.090.279) 0 (511.637 199.328 6.159 17.200 (3.000 (67.785 6.159 190.358) 0 (8.434.484.348 713.072) (77.261) 666.616) 175.200 (3.2 Projected Cashflow Statement PROJECTED CASH FLOW STATEMENT Year 0 Operating activities Net profit Depreciation Accounts receivable Stocks-RM Cash provided by operations Financing acivities Add: buliding rent expense Building rent payment Repayment of Running Finance Issuance of share Cash provided by/used for financing activities Total Investing activities Capital expenditure Cash provided by/used for invetsing activities Net Cash Cash balance brought forward Cash Balance Running Finance Cash carried forward Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 in Rs Year 10 (159.557.501) 1.022.618) 453.518 0 3.084 392. 2002/ Rev 1 .516 3.000 (185.616 (135.015 6.722 1.083) (213.200 6.526 (209.539) 7.976) 0 (8.639 1.221 247.084 180.115) 0 (175.150 (172.546) (511.068 6.637 1.150) (77.876.115 46.200 99.200 (5.815) 4.115) (181.722 1.525.032) (741.115 - (511.000 17.115) 175.434.034 0 4.013.889 (156.526) 0 (9.434.000 (731.024) 0 (9.000 (741.334) (185.881 1.518 4.047) (175.000 7.292) (748.502) 0 (9.814 1.613) 2.034 14 PREF-19/April.033 345.493 (128.352 1.639 1.292) 10.889) (741.484.782 93.000 (175.627 10.115) 128.814 1.200 (113.049) 392.881 3.825 453.722 1.100.627) 148.031.567.759.639 1.627) 10.499 (113.578 6.027) (35.334 (164.488) (40.825 172.382) (185.484.876.722 10.755 27.627) 185.814 164.164.047 (141.279) 521.863) (151.814 0 17.358 (180.

804 175.024 2.000 37.856.000 49.825 4.736 1.197 62.004 62.627 185.722 77.627 77.000 31.291 17.466 175.292 741.495 5.869 10.639 213.041 172.031.765.111.000 43.477 3.936 62.362 2.291 175.477 175.866 62.031.093 125.968 199.230 175.466 10.292 185.610 62.000 152.455 469.469 62.000 24.074 209.031.000 18.826) 517.600 2.Pre-Feasibility Study Layer Farm (5000 Birds) 11.092.000 62.941) (223.710 4.434.616 288.722 203.091 62.199 2.799 467.200 4.115 (217.000 31.111.591) (42.863 135.077 62.476) 478.825 4.546.314 1.976 2.082 601.590.736 175.279 521.317.600 12.000 6.558.230 10.176 128.047 423.706 148.869 175.150 570.400 2.680 171.067 167.200 55.736 1.691 156.000 350.722 0 0 0 0 0 0 0 0 0 0 0 0 175.800 1.337 190.334 510.814 216.525.115 4.115 294.600 517.034 0 297.197 1.3 Projected Balance Sheet PROJECTED BALANCE SHEET Year 0 Current Assets Cash Stocks and Inventory Receivable Pre-paid building rent Total Gross Fixed Assets Less: Accumulated depreciation Net Fixed Assets Total Assets Current Liabilities Running Finance Total Equity Paid-up Capital Retained Earnings Total Total Liabilities And Equity Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 in Rs Year 10 0 159.115 2.477 2.614 429.834 228.804 10.400 49.800 6.115 521.825 175.625 62.317.876.111.614 0 128.000 55.230 62.115 0 175.000 0 5.031.898 323.197 175.317.115 (398.000 0 62.000 182.936.197 601. 2002/ Rev 1 .242 627.553 164.621 1.518 247.820 223.800 478.874 242.314 2.279 741.526 4.314 175.127 442.115 175.115 267.115 350.196 180.765.800 37.558.000 187.000 176.765.358 1.000 12.000 601.400 627.889 584.570 547.142.115 1.484.558.115 4.200 547.115 1.115 426.400 18.881 250.610 5.740.891 141.610 15 PREF-19/April.502 5.610 175.311.200 24.714 62.600 43.383.031.

750 4.250 2.7 27.33 13.97 3 1.000 1 5% 3% 2% 250 4.000 12 16 PREF-19/April.78 2.500 2.5 12 2 Table 12-2: Economy Related Assumptions Electricity growth rate Wage growth rate 10% 5% Table 12-3: Expense Assumptions Administrative overhead (%of Sales) Raw material price growth rate DOC Cost (Day Old Chicks) Weight of Feed Bag(Kg) Feed Cost/Bag Rearing Period Feed Consumption/Bird/Month(Kg) Rearing Period Cost of Feed/Bird/Month Laying Period Feed Consumption/Bird/Month(Kg) Laying Period Cost of Feed/Bird/Month Vaccination Cost per Bird Spray Cost per Flock Litter Cost per Flock Electricity Expense per Month Pre-paid building Rent (Months) 0. 2002/ Rev 1 .5% 5% 20 50 518 1.Pre-Feasibility Study Layer Farm (5000 Birds) 12 KEY ASSUMPTIONS Table 12-1:Production Assumptions Maximum Capacity Utilization Number of Birds per Flock Number of Flocks per Year Total Mortality Rate Mortality Rate (Rearing Period) Mortality Rate (Laying Period) Total Mortality Loss (Birds) Total number of Birds Laying Eggs Length of Rearing Period (Months) Length of Laying Period (Months) Lag time between the Flock(Weeks) 100% 5.

500 5 10% Table 12-5: Cashflow Assumptions Raw Material Inventory (Days) Accounts Receivable Cycle(Days) 40 30 Table 12-6: Financial Assumptions Project life (Years) Debt Equity Interest rate on long-term debt Interest rate on short term debt Debt tenure (Years) Debt payments per year Discount rate (weighted Avg.Pre-Feasibility Study Layer Farm (5000 Birds) Table 12-4: Revenue Assumptions Number. 2002/ Rev 1 .250 21 20 1.5 71. of eggs laid/Bird/Month (Dozens) Availability of Eggs in Year 1 (Months) Production Capacity in Year 1 (Dozens) Eggs selling price (per Dozen) Birds selling price Litter selling price (per Flock) Feed Bags selling price (in Rs) Sales price growth rate 2 7.000 17 PREF-19/April. cost of capital for NPV) Minimum Cash Balance 10 50% 50% 16% 16% 5 1 20% 10.

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