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FAT Oil Mills (Pvt) Limited Annexure 1

Estimated Cost of Land

Sr. No. Description Area in Marlas Unit Cost


1 Land 160 125,000
2 Registratioin & Lega Requirements 10% of cost of Land 160 12,500
3 Stamp Duty 5% of Cost of Land 160 6,250
4 District Council Fee 2.5% of Cost of Land 160 3,125
5 Development Charges 15% of Cost of Land 160 18,750
Total Cost of Land 165,625
Annexure 1

Total Cost
20,000,000
2,000,000
1,000,000
500,000
3,000,000
26,500,000
FAT Oils (Pvt) Limited
Estimated Cost of Civil Works

Sr. No. Description Type of Building Unit of Construction


1 Oil Cake Store 1 RCC Square feet
2 Expelelr Room (G/Floor) RCC Square feet
3 Expeller Room (F/Floor) RCC Square feet
4 Refinery Room RCC Square feet
5 Offic Blcok and Corridor RCC Square feet
6 Machinery Covered area RCC Square feet
7 Store RCC Square feet
8 Separate two Rooms RCC Square feet
9 Cost of Jumbo Lon for insulation Open area Square feet
10 Boundary Wall and Gate Running feet
11 Brick Pavement Running feet
Total Cost of Civil Works
Annexure-2
d
orks

Covered area Rate Per Unit Total Cost


7065 575 4,062,375
2214 575 1,273,050
2214 575 1,273,050
196 575 112,700
694 575 399,050
403 575 231,725
714 575 410,550
492 500 246,000
42174 45 1,897,830
275,862
689,655
10,871,847
FAT Oil Mills (Pvt) Limited
Estimated Cost of Machinery

Sr.No. Description Qty


1 Ouil Expeller Bearing Type duty weight (100 Mon) with Crude Oil.
Production 250 m/24 hrs. 6
2 Electric Motor for Expeller 40 HP/950 RPM made China new. 6
3 Electric Motor Pully V-Belt type Local 6
4 Small Crude Tank for Expeller material 1/4 thickness Local 6
5 Big Crude Tank cap (500 Mon) Local Material 1
6 Storage Tank Cap (500 Mon) Local Material 2
7 M.S. Refined Tank Cap (250 Mon) heavy material (3/8 plate Local 3
8 Electric Motor 10 HP/950 RPM China 2
9 Electric Motor 5 HP/950 RPM China 2
10 Refined Pump with Motor 1
11 Gear Pump 2" X 2" Local 2
12 Electric Cables with tape fitting Electric Panel 1
13 Expeller Bolt & Motor Bolts foundation bolts 3
14 Capacitor 40 HP Motor 4
15 Electric Pump Gear with 5 HP Motor 1
16 Insurance & Transportation Cost
Total Cost of Machinery
Annexure-3

Unit Cost (Rs) Total Cost (Rs)

200,000 1,200,000
45,000 270,000
4,000 24,000
7,500 45,000
60,000 60,000
55,000 110,000
85,000 255,000
20,000 40,000
13,000 26,000
16,000 16,000
9,500 19,000
275,000 275,000
75,000 225,000
20,000 80,000
13,000 13,000
265,800
2,923,800
Annexure-4

FAT Oil Mills(Pvt) Limited


Estimated cost of the Project

Sr.No. Description Local currency Foreign currency Total cost


1 Land 26,500,000 - 26,500,000
2 Building 10,871,847 - 10,871,847
3 Machinery 2,923,800 - 2,923,800
4 Vehicles 6,270,000 6,270,000
5 Furniture and Fixture 65,000 65,000
6 Office Equipment 60,000 60,000
7 Other Fixed Assets 50,000 50,000
8 Pre-operating expenses 115,000 115,000
10 Interest during construction 2,579,473
Estimated fixed cost - 49,435,120
Add: Net Initial Net Working Capital 14,560,375
Total Estimated Cost of Project 63,995,494
Annexure-5
Production at 100% Capacity

Crushing Of Cotton Seed:

10000 Kg of Cotton Seed/day/Expellor No. of Expellors % Output Quantity


Oil Cake 6 80 17,280,000
Refined Oil 6 10 2,160,000
Oil Dirt 6 5 1,080,000
Wastage 6 5 1,080,000
Total 100 21,600,000
Year ending 31st December (Units in Kgs)
2008 2009
Capacity Utilized
75% 80%

Production of Oil Cake:

a) Number of Units Manufactured 12,960,000 13,824,000


Add: Opening Inventory - 1,296,000
Total Units available for Sales 12,960,000 15,120,000
Less: Closing Inventory 1,296,000 1,382,400
Units Sold 11,664,000 13,737,600

Production of Refined Oil:

b) Number of Units Manufactured 1,620,000 1,728,000


Add: Opening inventory - 162,000
Total Units available for Sales 1,890,000
Less: Closig Inventory 162,000 172,800
Units Sold 1,458,000 1,717,200

c) Production of Oil Dirt:

Number of Units Manufactured 810,000 864,000


Add: Opening Inventory - 8,100
Total Production available for Sales 810,000 872,100
Less: Closing Inventory 1% of Production 8,100 8,640
Quantity Sold 801,900 863,460
(Units in Kgs)
2010 2011 2012
85% 85% 85%

14,688,000 14,688,000 14,688,000


1,382,400 1,468,800 1,468,800
16,070,400 16,156,800 16,156,800
1,468,800 1,468,800 1,468,800
14,601,600 14,688,000 14,688,000

1,836,000 1,836,000 1,836,000


172,800 183,600 183,600
2,008,800 2,019,600 2,019,600
183,600 183,600 183,600
1,825,200 1,836,000 1,836,000

918,000 918,000 918,000


8,640 9,180 9,180
926,640 927,180 927,180
9,180 9,180 9,180
917,460 918,000 918,000
Sales Revenue:
Sales in Rupees
Capacity Utilized: 2008 2009 2010
75% 80% 85%

a) Sales of Oil Cake @ 12/Kg. 139,968,000 164,851,200 175,219,200


b) Sales of Refined Oil @ 70/kg. 102,060,000 120,204,000 127,764,000
c) Sales of Oil Dirt @ 6/Kg. 4,811,400 5,180,760 5,504,760
Total Sales( a, b & c) 246,839,400 290,235,960 308,487,960
s in Rupees
2011 2012
85% 85%

176,256,000 176,256,000
128,520,000 128,520,000
5,508,000 5,508,000
310,284,000 310,284,000
Raw Material:

Years 2008 2009 2010

Capacity Utilized 75% 80% 85%

Consumption of Raw Material:

Description Quantity (Kgs.)

a) Cotton Seed 10000kg/day/Expeller 16200000 17280000 18360000

b) Caustic Soda 486000 518400 550800


Total Quantity Consumed 16686000 17798400 18910800

Cost of Raw material:

Description Cost (Rupees)

a) Cotton seed @ 14/kg 226800000 241920000 257040000


b) Caustic soda @ 35/kg 17010000 18144000 19278000

Total Cost 243810000 260064000 276318000


2011 2012
85% 85%

ntity (Kgs.)

18360000 18360000

550800 550800
18910800 18910800

t (Rupees)

257040000 257040000
19278000 19278000

276318000 276318000
Labor Cost:

a) Direct Labor:

Sr. No. Plant Labor No. of Employees Salary/Month/Worker


1 Skilled 6 6000
2 Semi-Skilled 6 6000
3 Un-Skilled 6 6000
Total 18 18000
Add: Fringe Benefits (40% of Basic Salary)
Total Cost of Plant Labor

Sr. No. Production Labor No. of Employees Salary/Month/Worker


1 Plant Manager 1 10000
2 Electrition 6 5000
3 Peon/Sweeper 3 3000
Total 10 18000
Add: Fringe Benefits (40% of Basic Salary)
Total Cost of Production Labor
Annual Salary (Rs.)
432000
432000
432000
1296000
518400
1814400

Annual Salary (Rs.)


120000
360000
108000
588000
235200
823200
Year Wise Wages of Labor:

Years
Sr. No. Description 2008 2009
Cost in Rupees
1 Plant Labor 1,814,400 2,086,560
2 Production Labor 823,200 946,680
Total Cost of Labor 2,637,600 3,033,240
Years
2010 2011 2012
Cost in Rupees
2,399,544 2,759,476 3,173,397
1,088,682 1,251,984 1,439,782
3,488,226 4,011,460 4,613,179
Manufacturing Overhead Cost:

Description
a) Fixed Cost:

Power: KV @ Rs. 200/KV/Month


Insurance: @ 1% of Fixed Assets Cost

Maintenance and Depreciation:

Overhauling Expenses @ 15000 Per Expeller


Maintenance of Building
Maintenance of Vehicles
Depreciation - Building
Depreciation - Vehicles
Miscelleneous

Total Fixed Cost


b) Variable Manufacturing Expenses:

Power: KV @ Rs. 200/KV/Month


Machinery Rs. 0.5 Per 40/Kg on Crusing of Cotton Seed

Total Variable Cost

Year ending Manufacturing Overheads as per Different Capacities:

Years
2008 2009
Description
Cost in Rupee
75% 80%
Fixed Cost 1,317,645 1,317,645
Variable Cost 5,201,091 5,547,830
Total Cost of Manufacturing Overheads 6,518,736 6,865,475
Rupees

876,000 365 Operating Season Per KV


202,406 5.5 Per Unit
Maintenance Rs. 0.5 Per Mon on
Over Haulling Expenses Rs. 1500
Building Maintenance Rs. 25000
90,000 Vehicles One Motorcycle Honda C
25,000 Fixed Assets Office Furniture Rs.
360,000 Vehicles Maintenance Cost Rs. 1
362,395 Markeitng Rs. 5000 Per Month
470,250
10,000 Pre-Production Expenses
Pre-Production Expenses Rs. 500
1,317,645 Registration & Sales Tax Number

Transportaion Cost Rs. 7.00 to Rs


6,732,288 Transportaion Cost Rs. 40.00 to R
202,500 Office Equipment
FAX Machine
Computer
6,934,788
Othe Assets

fferent Capacities:

Years
2010 2011 2012
Cost in Rupees
85% 85% 85%
1,317,645 1,317,645 1,317,645
5,894,570 5,894,570 5,894,570
7,212,215 7,212,215 7,212,215
365 Operating Season Per KV
5.5 Per Unit
Maintenance Rs. 0.5 Per Mon on Crushing Cotton Seed
Over Haulling Expenses Rs. 15000 Per Expellor
Building Maintenance Rs. 25000 (White Wash)
Vehicles One Motorcycle Honda CD 70, Car Honda VTI (Rs. 1200000)
Fixed Assets Office Furniture Rs. 50000
Vehicles Maintenance Cost Rs. 10000 Per Month
Markeitng Rs. 5000 Per Month

Pre-Production Expenses
Pre-Production Expenses Rs. 50000
Registration & Sales Tax Number Rs. 10000

Transportaion Cost Rs. 7.00 to Rs. 10.00 Per 40 Kg. Local Purchases.
Transportaion Cost Rs. 40.00 to Rs. 50.00 Per 40 Kg. Othe than Punjab
Office Equipment
FAX Machine 50000
0
Othe Assets 0
Break Up of Administrative Salaries:

Sr. No. Designation


1 Managing Director
2 Accountant
3 Clerk
4 Cahier
5 Chowkidar/Godown Keeper
6 Peon/Sweeper
Total
Add: Fringe Benefits @ 40%
Total Cost of Administrative Staff

General Expenses:

Sr. No. Description


1 Travelling Expenses
2 Printing & Stationary
3 Telephone, Telex, Postage
4 Rents, Rates and Taxes
5 Entertainment
6 Legal & Audit
7 Miscellaneous
Total
Rupees
No. of Employees
Salary Per Month Annual Salary
1 15,000 180,000
1 6,500 78,000
3 4,500 162,000
1 4,000 48,000
2 3,000 72,000
2 3,000 72,000
9 21,000 432,000
8,400 172,800
ve Staff 29,400 604,800

Annual Expenses (Rs.)


100,000
20,000
250,000
250,000
20,000
100,000
15,000
755,000
Year Wise Administrative Salaries:

2008 2009
Sr. No. Designation No. of Employees
Cost in Rupe
1 Managing Director 1 180,000 198,000
2 Accountant 1 78,000 85,800
3 Clerk 3 162,000 178,200
4 Cahier 1 48,000 52,800
5 Chowkidar/Godown Keeper 2 72,000 79,200
6 Peon/Sweeper 2 72,000 79,200
Total 10 612,000 673,200
Add: Fringe Benefits @ 40% 244,800 269,280
Total Administrative Salaries per Year 856,800 942,480

General Expenses:

Sr. No. Description Cost in Rupe


1 Travelling Expenses 100,000 110,000
2 Printing & Stationary 20,000 22,000
3 Telephone, Telex, Postage 250,000 275,000
4 Rents, Rates and Taxes 250,000 275,000
5 Entertainment 20,000 22,000
6 Legal & Audit 100,000 110,000
7 Miscellaneous 15,000 16,500
Total 755,000 830,500
2010 2011 2012
Cost in Rupees
216,000 234,000 252,000
93,600 101,400 109,200
194,400 210,600 226,800
57,600 62,400 67,200
86,400 93,600 100,800
86,400 93,600 100,800
734,400 795,600 856,800
293,760 318,240 342,720
1,028,160 1,113,840 1,199,520

Cost in Rupees
120,000 130,000 140,000
24,000 26,000 28,000
300,000 325,000 350,000
300,000 325,000 350,000
24,000 26,000 28,000
120,000 130,000 140,000
18,000 19,500 21,000
906,000 981,500 1,057,000
Initial Net Working Capital Requirement

Description Rupees
A. Current Assets:

1 Inventories:

a) Raw Material 20 Days Requirement:

I) Cotton Seed 12,600,000


II) Caustic Soda 945,000

b) Finished Goods 12,648,317


c) Spares & Stores 541,800

Total Cost of Inventory 26,735,117


2 Advances and Deposits 270,900
3 Accounts Receivables (3% of Sales) 7,405,182
4 Cash 1% of Amount withdrawn from Bank for Inventory 200,513
Total Current Assets 34,611,712

5 Possible Current Liabilities:

B. Less: Bank Borrowing 75% of Inventories 20,051,338

Net Initial Working Capital 14,560,375


Depreciation Schedule of Fixed Assets:

Sr. No. Description Total Cost (Rs.) Depreciation (Rs.)


1 Plant & Machinery 2,923,800 219,285
2 Building 10,871,847 362,395
3 Vehicles 6,270,000 470,250
4 Furniture & Fixture 65,000 10,400
5 Office Equipment 60,000 9,600
6 Other Fixed Assets 50,000 8,000
Total Depreciation Cost 20,240,647 1,079,930
Year Wise Depreciation:

Years
Description 2008 2009 2010 2011 2012
Cost in Rupees
Depreciation 1,079,930 1,079,930 1,079,930 1,079,930 1,079,930
Pre-Production Expenses:
Description
Registration Charges
Sales Tax Registration Charges
Consultancy & Report Preparation Charges
Total Preprodction Expenses
Amount in Rupees
45,000
20,000
50,000
115,000
Estimated Cash Flow Statement

End of Construction 2008


Sources of Funds:
Operating Profit -
Add: Depreciation -
Total Funds from Operation -
Other Sources
Long Term Loans 38,397,297
Bank borrowings 500,000
Paid_ Up Capital 25,598,198
Total sources of funds 64,495,494
Application Of Funds:
Investment in fixed assets 46,740,647
Financial Charges During Construction 2,579,473
Pre-Production Expenses 115,000
Repayment of:
Long term loan -
Bank borrowings -
Financial Charges On:
Long Term Loans -
Bank Borrowings -
Payment Of:
Taxes
Worker's Fund
Short Term Investment -
Increase in current assets other than cash 14,357,700
Total Application of funds 63,792,820
Cash Surplus 702,675
Cash at beginning of year -
Cash at end of year 702,675
ow Statement

2009 2010 2011 2012


Estimated Balance Sheet

End of construction 2008 2009


Assets:
Current Assets
Cash 702,675
Short term Investment -
Accounts Receivable -
Inventories:
Raw material 13,545,000
Finished goods -
Stores&spares 541,800
Advances deposits 270,900
Total Current Assets 15,060,375
Fixed Assets
Fixed Assets at cost 49,320,120
Less Acc: Depreciation -
Net fixed Assets 49,320,120
Intangibles 115,000
Total Assets 64,495,494
Liabilities And Equity
Current Liabilities:
Bank borrowings 500,000
Taxes payable -
Worker's fund payable -
Current Maturity of long term debt -
Total Current Liabilities 500,000
Long Term Debt:
Long term loan 38,397,297
Total long term debt 38,397,297
Equity
Paid up capital 25,598,198
Retained earnings -
Total equity 25,598,198
Total Liabilities & Equity 64,495,494
2010
Estimated Income Statement

2008 2009 2010


Sales 246839400
Less cost of sale
Raw material 243810000
Labour 2637600
Factory overheads 6518736
Depreciation 1079930
Total cost of manufacturing ###
Inventory Adjustment ###
Cost of Sale ###
Gross Profit ###
Operating Expenses