Professional Documents
Culture Documents
OF
2080
1. Executive summary:
The demand of Chicken meat is increasing rapidly, hence Broiler production
business become one of the most popular and income generating business in Nepal.
Due to high level of profit margin and turnover Rita poultry farm plans to expand
its business up to 100% capacity. For that it needs total of Rs 15.7 million funds.
its planning to borrow Rs 5 million Loan from PRABHU BANK, Jhiwakhola and
remaining will be financed through self financing. The Farm is calculating and
analyzing various financial indicators to make decision regarding financing and
investing activities.
The project has Positive NPV Rs 4.9 million, IRR= 18.2% Payback period is 4.15
years & BCR is greater than 1. These all indicators show that investing in this
project is profitable and value adding hence the Farm is concluded to expand the
business as per business plan.
5. Legal Status: Rita Poultry Farm has been registered in office of cottage
and small industry department, Baglung on 2069.02.08 having registration
No 3340/258/068/69. it is also registered in inland revenue office, Janakpur
with PAN No 601659371 on 2071.10.09. it has to authorized capital Rs 3
lakhs.
6. Past Performance: Rita Poultry Farm is operating since 2068.69 with
growing profit margin. As per audited financial report 2074.75 the Financial
indicator of Rita poultry Farm is presented in Annex 18
There are 7 Staff and One business supervisor under top to down
management style. The Organization Structure of Rita Poultry Farm is as
follows.
Proprietor
Poultry Supervisor
SOURCES OF FINANCE
(Rs.'000)
SN Items Total Equity Bank
Amount Finance Loan
A Fixed Asset Investment 11632 9127 2505
100% 78% 22%
1 Land & Land Development 3600 3600 0
3 Building & Civil Works 5104 3216 1888
4 Machineries & Equipments 849 339 509
5 Furniture & Office Equipments 145 58 87
6 Vehicle 1900 1900 0
7 Pre-operating Expenses 35 14 21
THE END