Presented by Luqman Ali (F2020314020)
Annual forcasting report 202
JDW sugar mills LTD.
Presented to: Sir Adeel Salam Shaikh
Table of content
PREFACE
ACKNOWLEDGEMENT
INTRODUCTION
EXECUTIVE SUMMARY
SALES BUDGET
PRODUCTION BUDGET
DIRECT MATERIAL BUDGET
DIRECT LABOR BUDGET
MANUFACTURING OVERHEAD BUDGET
SELLING, GENERAL AND ADMINISTRATIVE BUDGET
CASH RECEIPT BUDGET
CASH DISBURSEMENT BUDGET
CASH BUDGET
BUDGETED SCHEDULE OF COST OF GOODS MANUFACTURED
AND SOLDS
BUDGETED INCOME STATEMENT
BUDGETED STATEMENT OF CASH FLOWS
BUDGETED BALANCE SHEET
PREFACE
As studying in the field of business we have to be practical in real life. We have to make or deal
with the financial statements of organizations regarding profit, planning. So, I am needed to
create project on budgeting. the essential objective behind this can be to induce information of
various tools of getting ready master budget of an organization during this project I actually
have enclosed construct of forecasting finances of Jamaal din Wala sugar mills LTD as well as
some schedule of sales, production,direct material etc.
ACKNOWLEDGEMENT
I am terribly glad to the revered teacher AdeelSalam shaikh for providing me the chance to try
to thisforecasting project because it helps me in future while doing my job. I provide my sincere
appreciation for the training opportunities provided by him. My completion concerning this
project couldn't bepotential without consulting with my friends and people. They help me a lot
during this project.
Introduction
JDW Group is the progressive industrial house of the country. Sugar manufacturing is the core
business of the Group and is also renowned for support of innovative farming techniques which
augment the core business. The Group takes immense pride in social responsibility activities
(social mobilization, women enterprise development, support to technical and primary
education, micro credit for the poor, infrastructure development, livestock development etc.)
all aimed at ameliorating social and economic conditions of the poor people in rural [Link]
Sugar Division comprises of three sugar mills Units, JDW Unit-I, JDW Unit-II and JDW Unit-III in
the districts of Rahim Yar Khan, Punjab and Ghotki, Sindh.
The Company has been successful in completing and commissioning its two high-pressure Co-
Generation plants at Unit-II (Sadiq Abad) and Unit-III (Ghoki). The first 26.6 MW plant at Unit-II
achieved commercial operations on 12 June 2014 after clearing all testing, certification and trial
run requirements. The second 26.8 MW project at Unit-III achieved commercial operations on
03 October 2014 after similarly completing all pre-commissioning formalities.
JDW is also managing Sugarcane Corporate Farms over the area of 24,000 Acres in the
Provinces of Punjab & Sindh. By using knowledge, experience together with modern tools and
machinery and distinctive agronomic strategies, JDW has been able to build highly efficient and
eco-friendly farms with higher yields. Company’s unique farming techniques have also led to
the capacity building of existing farmers thereby resulting in improved and reliable cane supply
to JDW.
Executive summary
By viewing on the annual report of JDW sugar mills LTD. 2020-2021 quarterly budgeting is
prepared. In this project I can overcome through budgets (sales, production, direct material,
direct labor, manufacture overhead, selling and administrative expense, cash receipt, cash
disbursement, cash,cost of goods manufactured and sold, income statement, cash flows
statement, balance sheet). Initial it is very difficult for me to analysis the production data then I
overcome this by taking the inflation rate of the next year and growth rate of the company and
then calculate the production data.
Sales budget
Sugar
Quarter
1st 2nd 3rd 4th year
sales in unit 135530.141 133302.4854 169570.0845 149105.6391 587,508
unit sale price 270000 270000 270000 270000 270000
total sales revenue 36593138082 35991671061 45783922814 40258522556 158,627,270,376
According to the sale budget the company will generate revenue of sugar 158627million and
molasses 5533.41 million on the inflation rate and growth rate
Molasses
Quaters
1st 2nd 3rd 4th year
sales in unit 73093.09774 138064.7402 59557.3389 0 270715.1768
unit sale price 20440 20440 20440 20440 20440
sales revenue 1494022918 2822043289 1217352007 0 5533418214
Production Budget:
In the production budgetthe company produced the 3.6% of sugar of the next quarter in the
previous quarter .The expected beginning inventory of the previous year is placed on the 1 st
quarter and the desirable inventory is placed to the next quarter of the beginning inventory to
and then less the beginning inventory by unit required to produced the units of production of
sugar.
sugar
Quarters
1st 2nd 3rd 4th year
sales in unit 135530.141 133302.485 169570.084 149105.639 587508.409
add desirable inventory of finished good 4798.889475 6104.52304 5367.80301 4879.08508 4879.08508
total unit required 140329.0305 139407.008 174937.888 153984.724 592387.494
less: expected beginning inventory 20326.01288 4798.88947 6104.52304 5367.80301 20326.0129
unit to be produced 120003.0176 134608.119 168833.364 148616.921 572061.481
molasses
quaters
1st 2nd 3rd 4th year
sales in unit 73093.09774 138064.74 59557.3389 0 270715.177
add: desirable inventoryof finished goods 0 0 0 0 0
total unit required 73093.09774 138064.74 59557.3389 0 270715.177
less: expected beginning invemtory 0 0 0 0 0
unit to be produced 73093.09774 138064.74 59557.3389 0 270715.177
Direct material budget:
In direct material budget the company will make 10.2 ton of sugarcane by 1 ton of sugar. So,
the production of required sugar cane is come through the unit to be produced in the
production budget multiply the sugarcane required per unit. Then we add the desirable ending
inventory and less the beginning inventory. according to the company the cost per sugar can of
ton is Rs 5250.
Sugar
Quarters
1st 2nd 3rd 4th year
Sugarcane to be produced 120003.0176 134608.119 168833.3645 148616.9212 572061.481
raw material required per unit 10.02 10.02 10.02 10.02 10.02
sugarcane required for production 1202430.237 1348773.352 1691710.312 1489141.55 5732056.04
add desirable ending inventory for production 48555.84068 60901.57123 53609.0958 43287.48852 43287.48852
total raw material required 1250986.077 1409674.923 1745319.408 1532429.039 5775343.528
less expected beginning inventory 0 0 0 0 0
raw material to be purchased 1250986.077 1409674.923 1745319.408 1532429.039 5775343.528
cost per sugarcane 5250 5250 5250 5250 5250
total cost 6567676906 7400793347.81 9162926890.50 8045252453 30320553523
Molasses
quaters
1st 2nd 3rd 4th year
molasses to be produced 73093.09774 138064.7402 59557.3389 0 270715.1768
raw material required per unit 21.6 21.6 21.6 21.6 21.6
sugarcane required for production 1578810.911 2982198.388 1286438.52 0 5847447.819
add desirable ending inventory for production 0 0 0 0 0
total raw material required 1578810.911 2982198.388 1286438.52 0 5847447.819
less expected beginning inventory 0 0 0 0 0
raw material to be purchased 1578810.911 2982198.388 1286438.52 0 5847447.819
cost 10000 10000 10000 10000 10000
total cost 15788109111 29821983876 12864385202 0 58474478189
Direct Labor budget:
In the direct labor budget, I can conclude the direct labor cost by dividing the amount oflabor
cost 2145582602 with the production of cost in in m ton 548219 in previously year and then
multiply with the units to conclude total labor cost
labor budget
Quarters
1st 2nd 3rd 4th year
unit to be produced 120003.0176 134608.119 168833.3645 148616.9212 572061.481
direct labor cost 3913.732654 3913.732654 3913.732654 3913.732654 3913.732654
total direct labor cost 469659728.72 526820190.74 660768651.58 581646897.31 2238895698.28
Manufacturing overhead budget:
Selling and administrative budget:
Cash receipt budget:
In cash receipt the company collect cash 90% in the same quarter and 8% in the next quarter
and 2% of cash is uncollectible from the sales revenue.
cash receipt
Quarters
1st 2nd 3rd 4th year
sales revenue 38087161000 38813714350 47001274821 40258522556 164,160,688,590
collection of quarters 90% in the same quarter 34278444900 34932342915 42301147339 36232670300 147744605454.36
collection of quarters 8% in the next quarter 4,195,841,481 2742275592 2794587433 3384091787 13,116,796,293
total cash receipt 38,474,286,381 37674618507 45095734772 39616762088 160,861,401,748
quaters
1st 2nd 3rd 4th year
uncollectible accounts 761743220 776274287 940025496.4 805170451.1 3283213455
Cash disbursement budget:
In this budget the company make purchases of sugar 97.4% in the same quarter and 2.6% of the
purchases is done in the next quarter.
Cash disbursement
Quarters
1st 2nd 3rd 4th Year
cost of raw material purchase 22355786017 37222777224.10 22027312092.04 8045252453 88795031711.43
cash payment in purchases during the quarter 21774535581 36254985016 21454601978 7836075889 87320198463.87
cash payment for prior quarters purchase 1032234146 581250436.5 967792207.8 572710114.4 3153986905
total cash payment 22806769727.02 36836235452.73 22422394185.47 8408786003.33 90474185368.54
other cash disbursement
Diret labour 469659728.72 526820190.74 660768651.58 581646897.31 2238895698.28
Manufacturing overheads 122479072.4 117556148.2 152936132.4 134625680.5 530526783.1
Selling, admin, general expenses 19014607.64 18928152.5 20335700.86 19541474.04 77819935.04
Total other cash payments 611153408.73 663304491.46 834040484.84 735814051.84 2847242416.40
Total payments 23417923136 37499539944 23256434670 9144600055 93321427784.95
Cash budget:
In cash budget we can less cash disbursement from cash receipt to conclude change in cash
then we deduct the cash of previous year to make cash balance. The company has no loss in the
any quarter so we do not need of taking loan.
Cash budget
Quarters
1st 2nd 3rd 4th year
cash receipt 38,474,286,381 37674618507 45095734772 39616762088 160,861,401,748
less: cash disbursement 23417923136 37499539944 23256434670 9144600055 93321427784.95
change in cash 15056363245.12 175078562.9 21839300102 30472162032.35 67,539,973,963
cash balance previous year -3,535,745,781
cash balance 64,004,228,182
Cost of goods manufactured:
In the cost of goods manufactured the raw material cost is noted from the annual report of
JDW sugar mills limited [Link] in process is zero because no ending or beginning inventory
take place because the sugarcane material used collectively to produced sugar immediately
because it will dry after sometimes if it left in the stores.
Direct Material
Raw material inventory 0
add: purchases of raw material 30320553523
raw ,material available for use 30320553523
deduct: raw material inventory 432874885.2
Direct material used 29887678637
Direct labor 2238895698.28
manufacturing overhead 530526783.1
total manufacturing cost 32657101118.76
add:work in process inventory 0
subtotal 32657101118.76
deduct : work in process inventory 0
cost of goods manufactured 32657101118.76
add: finished goods inventory 0
cost of goods available for sale 32657101118.76
deduct finished goods inventory 0
cost of goods sold 32657101118.76
Income statement:
sales revenue 164,160,688,590
cogs 32657101118.76
gross margin 131,503,587,471.03700
expenses
manufacturing overhead 530526783.1
selling admin exp 77819935.04
uncollectible amounts 3283213455
total exp 3891560173
profit of the year 127,612,027,298.36700
Current assets
Right-of-use assets 43,462,361
Short term investments 651,994,491
Lease receivables 69,633,908
Biological assets 2,335,200,206
Stores, spare parts and loose tools 1,381,816,893
Stock-in-trade 432,874,885
Trade receivables 3,220,681,804
Advances, deposits, prepayments and other receivables 596,888,246
Advance income tax - net 290,291,164
Cash and bank balances 67,787,293,642
76,810,137,600
Non current assets
Property, plant and equipment 19,670,791,623
Right-of-use assets 1,836,163,006
Investment property 185,854,012
Intangibles 612,730,104
Long term investments 1,084,012,500
Long term deposits 95,186,741
Deferred taxation 368,027,550
23,852,765,536
total assets 100,662,903,136
current liabilities
Short term borrowings 3,015,112,876
Current portion of non-current liabilities 4,167,790,367
Trade and other payables 1,376,475,426
Advances from customers 1,064,373,067
Unclaimed dividend 33,748,830
Accrued profit / interest / mark-up 251,304,750
9,908,805,316
noncurrent liabilities
Long term finances - secured 8,995,865,407
Lease liabilities 1,313,728,626
Deferred taxation 0
Retirement benefits 55,987,252
Deferred income - Government grant 685,215
total liabilities 10,366,266,500
Equity
Share capital 597,766,610
Share premium reserve 678,316,928
Accumulated profit 140,783,490,229
142,059,573,767
total liabilities and equity 162,334,645,583
Cashflow statement:
In the cashflow statement the financing and investing activities are zero because company is
not investing or financing in any kind of productafter concluding the net increase in cash by
adding all activities we can subtract it from the beginning cash to balance the cash at the year
end .
cashflows from operating activities
cash receipt from customer 160,861,401,748
cash payment
to supplier of raw material 90474185368.54
direct labor 2238895698.28
manufacturing overhead 530526783.1
seeling ,general expenses 77819935.04
interest 0
total cash payment 93321427784.95
net cash flows 67,539,973,962.7279
cashflows from investing activities
construction of building addition 0
net cash 0
cash flows from financing activities
0
net incease in cash 67,539,973,962.7279
balance in cash in the beginning -3,535,745,781
balance of cash et the end of the year 64,004,228,181.7279
