Pre-Feasibility Study

Meat Processing Unit and Slaughter House

Small and Medium Enterprises Development Authority

Ministry of Industries & Production
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE
4th Floor, Building No. 3, Aiwan-e-Iqbal Complex, Egerton Road,
Lahore
Tel: (92 42) 111 111 456, Fax: (92 42) 36304926-7
helpdesk@smeda.org.pk

REGIONAL OFFICE REGIONAL OFFICE REGIONAL OFFICE REGIONAL OFFICE

PUNJAB SINDH KPK BALOCHISTAN

3rd Floor, Building No. 3,
Aiwan-e-Iqbal Complex,
Egerton Road Lahore,
Tel: (042) 111-111-456
Fax: (042) 36304926-7
helpdesk.punjab@smeda.org.pk
5TH Floor, Bahria
Complex II, M.T. Khan Road,
Karachi.
Tel: (021) 111-111-456
Fax: (021) 5610572
helpdesk-khi@smeda.org.pk
Ground Floor Bungalow No. 15-A
State Life Building Chaman Housing Scheme
The Mall, Peshawar. Airport Road, Quetta.
Tel: (091) 9213046-47 Tel: (081) 831623, 831702
Fax: (091) 286908 Fax: (081) 831922
helpdesk-pew@smeda.org.pk helpdesk-qta@smeda.org.pk

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Pre-Feasibility Study Meat Processing Unit and Slaughter House

Table of Contents
1 DISCLAIMER ................................................................................................................................... 3
2 EXECUTIVE SUMMARY................................................................................................................. 4
3 INTRODUCTION TO SMEDA........................................................................................................ 5
4 PURPOSE OF THE DOCUMENT ................................................................................................... 5
5 BRIEF DESCRIPTION OF PROJECT & PRODUCT .................................................................... 6
5.1 PRODUCTION PROCESS FLOW ................................................................................................................ 6
.................................................................................................................................................................................................. 6
5.2 INSTALLED AND OPERATIONAL CAPACITIES ..................................................................................... 6
6 CRITICAL FACTORS ...................................................................................................................... 7
7 GEOGRAPHICAL POTENTIAL FOR INVESTMENT .................................................................. 7
8 POTENTIAL TARGET CUSTOMERS / MARKETS .................................................................... 8
9 PROJECT COST SUMMARY .......................................................................................................... 8
9.1 PROJECT ECONOMICS ................................................................................................................................. 8
9.2 PROJECT FINANCING .................................................................................................................................... 8
9.3 PROJECT COST ............................................................................................................................................... 9
9.4 SPACE REQUIREMENT............................................................................................................................... 10
9.5 MACHINERY & EQUIPMENT REQUIREMENT .................................................................................... 10
9.6 FURNITURE & FIXTURES REQUIREMENT.......................................................................................... 11
9.7 OFFICE EQUIPMENT REQUIREMENT................................................................................................... 11
9.8 HUMAN RESOURCE REQUIREMENT .................................................................................................... 12
9.9 UTILITIES AND OTHER COSTS................................................................................................................. 13
9.10 REVENUE GENERATION............................................................................................................................ 13
10 CONTACT DETAILS ..................................................................................................................... 13
10.1 MACHINERY SUPPLIERS ........................................................................................................................... 13
10.2 TECHNICAL EXPERTS / CONSULTANTS ............................................................................................. 14
11 USEFUL WEB LINKS .................................................................................................................... 15
12 ANNEXURES .................................................................................................................................. 16
12.1 INCOME STATEMENT .................................................................................................................................. 16
12.2 BALANCE SHEET .......................................................................................................................................... 17
12.3 CASH FLOW STATEMENT ......................................................................................................................... 18
13 KEY ASSUMPTIONS ..................................................................................................................... 19
13.1 PRODUCTION ................................................................................................................................................. 19
13.2 REVENUE ASSUMPTIONS ......................................................................................................................... 19
13.3 FINANCIAL ASSUMPTIONS ....................................................................................................................... 19

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1 DISCLAIMER
This information memorandum is to introduce the subject matter and provide a
general idea and information on the said matter. Although, the material included in
this document is based on data/information gathered from various reliable
sources; however, it is based upon certain assumptions, which may differ from
case to case. The information has been provided on as is where is basis without
any warranties or assertions as to the correctness or soundness thereof. Although,
due care and diligence has been taken to compile this document, the contained
information may vary due to any change in any of the concerned factors, and the
actual results may differ substantially from the presented information. SMEDA, its
employees or agents do not assume any liability for any financial or other loss
resulting from this memorandum in consequence of undertaking this activity. The
contained information does not preclude any further professional advice. The
prospective user of this memorandum is encouraged to carry out additional
diligence and gather any information which is necessary for making an informed
decision, including taking professional advice from a qualified consultant/technical
expert before taking any decision to act upon the information.
For more information on services offered by SMEDA, please contact our website:
www.smeda.org.pk

Document Control

Document No. PREF-NO

Revision No.
Prepared by SMEDA-Balochistan
Revision Date June, 2019

For information shakoor@smeda.org.pk

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Pre-Feasibility Study Meat Processing Unit and Slaughter House

2 EXECUTIVE SUMMARY

Meat Processing unit and Slaughter House is proposed to be located at

Kuchlak, Balochistan. The Products include Sheep, Goat and Cattles. The
Installed annual capacity will be 2,430,000 kg and initial utilization will be 70% with
5% annual increase.

Total Cost Estimates is Rs. 176,531,175 with fixed investment Rs. 158,312,094
and working capital Rs. 18,219,081

Given the cost assumptions IRR and payback are 38% and 4 years respectively.

The most critical considerations or factors for success of the project are: Safe
disposal of condemned carcass, Safe disposal of waste, maintenance of Good
Hygiene in the slaughterhouse and prevention of Disease

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3 INTRODUCTION TO SMEDA
The Small and Medium Enterprises Development Authority (SMEDA) was
established in October 1998 with an objective to provide fresh impetus to the
economy through development of Small and Medium Enterprises (SMEs).
With a mission "to assist in employment generation and value addition to the
national income, through development of the SME sector, by helping increase the
number, scale and competitiveness of SMEs", SMEDA has carried out ‘sectoral
research’ to identify policy, access to finance, business development services,
strategic initiatives and institutional collaboration and networking initiatives.
Preparation and dissemination of prefeasibility studies in key areas of investment
has been a successful hallmark of SME facilitation by SMEDA.
Concurrent to the prefeasibility studies, a broad spectrum of business
development services is also offered to the SMEs by SMEDA. These services
include identification of experts and consultants and delivery of need based
capacity building programs of different types in addition to business guidance
through help desk services.

4 PURPOSE OF THE DOCUMENT

The objective of the pre-feasibility study is primarily to facilitate potential
entrepreneurs in project identification for investment. The project pre-feasibility
may form the basis of an important investment decision and in order to serve this
objective, the document/study covers various aspects of project concept
development, start-up, and production, marketing, finance and business
management.
The purpose of this document is to facilitate potential investors in Meat
Processing Unit and Slaughter House by providing them with a general
understanding of the business with the intention of supporting potential investors in
crucial investment decisions.
The need to come up with pre-feasibility reports for undocumented or minimally
documented sectors attains greater imminence as the research that precedes
such reports reveal certain thumb rules; best practices developed by existing
enterprises by trial and error, and certain industrial norms that become a guiding
source regarding various aspects of business set-up and its successful
management.
Apart from carefully studying the whole document one must consider critical
aspects provided later on, which form basis of any Investment Decision.

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5 BRIEF DESCRIPTION OF PROJECT & PRODUCT

Following key parameters must be addressed as per pre-feasibility study under
preparation
• Technology: Slaughter house will be operated on industrial lines like a
process type industry with a wide range of services featuring cold storage,
processing, proper by-product utilization.
• Location: The processing unit and slaughter house will be situated in Kuchlak,
Balochistan. It will be situated at a distance from the residential areas to
prevent possible inconvenience to the residents, either by way of pollution from
slaughter wastes or by way of nuisance from noise or stench/smell.
Nevertheless, some proximity to the city or town would be maintained to take
advantage of vital services such as power and water supplies. The premises
near waterlogged areas would be avoided. Where possible, plantation would
be done.
• Product: Red meat will be considered as primary items for processing under
this facility. The project will provide Slaughter House, Packaging and Cold
Storage.
• Target Market: Initially this project will cater the local markets of Pakistan and
then Muslim countries which import halal meat such as Malaysia, Egypt, Iran,
Saudi Araba, UAE and as well as china, which is the one of major importer of
meat.
• Employment Generation: The proposed project will provide direct
employment to 49 people.

5.1 Production Process Flow

Lirage Slaughtering Bleeding Skinning

Packaging Rigor Mortis Post-mortem

and Storage Process Inspection Eviscerating

5.2 Installed And Operational Capacities

The capacity of the proposed slaughterhouse is 200 goats, 200 Sheep and 50
cattle per day. The capacity utilization varies depending on the staff efficiency and

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availability of animals. To make it more prudent, starting capacity is assumed to be

70% with an annual growth of 5%.

6 CRITICAL FACTORS
• Safe disposal of condemned carcass
• Safe disposal of waste
• Good Hygiene in the slaughterhouse
• Disease
• Availability of water

7 GEOGRAPHICAL POTENTIAL FOR INVESTMENT

Balochistan area wise is the largest province of Pakistan with a total land mass of
348,189 sq. km. it has a variety of geographic features including mountains,
deserts, rangelands, forests and coastal line. Livestock plays an important role in
the economy of Balochistan in terms of income and employment. Livestock
production is an important source of income for the rural poor in the province. It
enables poor and landless farmers to earn income using common property
rangelands owned by different tribes.
Balochistan is rich in livestock resources contributing about 40 per cent of
Pakistan’s total livestock population. The main consumers of its livestock include
leather, carpet and pharmaceutical industries. The province caters to the needs
and demands of leather and carpet industries by sustaining the supply of Hyde
and wool to these sectors. Being a pastoral economy Balochistan is yet to exploit
its tremendous potential in livestock sector. Animals are traditionally kept for
meeting household milk and meat needs. Livestock development is linked with
poverty alleviation in the province, as its 70 percent population is directly or
indirectly involved in livestock rearing activities. A poverty alleviation strategy with
main focus on livestock development can target the higher poverty in the province.
Livestock is an important sector of rural economy contributing about 40 percent to
the provincial GDP. According to one estimate, the province maintains 2.253581
million cattle, 12.804217 million sheep, 11.784711 million goats, 0.319854 million
buffaloes, 0.379528 million camels, 0.059973 million horses, 0.006256 million
mules, 0.471942 million donkeys and 5.911304 million poultry. Livestock
contributes Rs. 20 billion with share of meat 40%, milk 35%, eggs 13%, skin, hides
& wool 10% and others 2%. The province annually produces 28,000 tons of beef
and 204,000 tons of mutton. Ironically, the provincial government allocates a

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nominal amount for the development of this sector, which is the primary
sustainable source of living for over 70 percent of local population.

8 POTENTIAL TARGET CUSTOMERS / MARKETS

Meat is daily used product, consumed everywhere in the globe. Due to its high
demand and uses its prices are increasing on daily bases. Meat is used for
different purposes all over the world. Demand for meat in Pakistan has been
increasing due to change in consumption pattern and population growth. The
demand gets double during the holy month of Ramadan. However due to lack of
proper handling, processing, package and storage the world market is not fully
explored.
Initially only Pakistani market will be targeted. Also the potential target markets are
the Muslim countries which import halal meat such as Malaysia, Egypt, Iran, Saudi
Araba, and UAE and as well as china, which is the one of major importer of meat.
Meat is widely consumed in Pakistan too, so local market of Pakistan is also the
potential market.

9 PROJECT COST SUMMARY

9.1 Project Economics

All the figures in this financial model have been calculated for estimated sales of
Rs. 1228 million in the year one. The capacity utilization during year one is worked
out at 70% with 5% increase in subsequent years up to the maximum capacity
utilization of 95%.
The following table shows internal rate of return, payback period and net present
value of the proposed venture.
Table 1: Project Economics
Description Details

Internal Rate of Return (IRR) 38%

Payback Period (yrs.) 4.00

Net Present Value (Rs.) 93,804,287

9.2 Project Financing

Following table provides details of the equity required and variables related to
bank loan;

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Table 2: Project Financing

Description Details
Total Equity (50%) Rs 87,779,988
Bank Loan (50%) Rs 87,779,988
Markup to the Borrower (%age / annum) 16%
Tenure of the Loan (Years) 5

9.3 Project Cost

Following fixed and working capital requirements have been identified for
operations of the proposed business.

Table 3: Project Cost

Description Amount Rs.
Capital Cost
Land 6,775,999
Building/Infrastructure 34,736,000
Machinery and Equipment 82,985,000
Furniture and Fixtures 1,980,000
Office Vehicles 28,035,000
Office Equipment 1,214,000
Pre-operating costs 2,586,095
Total Capital Cost 158,312,094
Working Capital
Equipment spare part inventory 1,601,775
Raw Material Inventory 15,617,306
Cash 1,000,000
Total Working Capital 18,219,081
Total Project Cost 176,531,175

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9.4 Space Requirement

The space requirement for the proposed meat processing and slaughter house
is estimated considering various facilities including management office, production
hall, storage, open space, etc. Details of space requirement and cost related to
land & building is given below;
Table 4: Space Requirment
Estimated Area Unit Cost/ Total Cost
Description
(Sqft) Rate (Rs.) (Rs.)
Management building 2,000 2,500 5,000,000
Processing Line Hall 3,000 3,500 10,500,000
Cattle, Goat and Sheep 1,500
3,000 4,500,000
Preservation shed
Raw Material Store 1,000 1,500 1,500,000
Duty staff Accommodation 500 2,000 1,000,000
Staff Washrooms 200 2,000 500,000
Cold Storage area 2,000 3,000 6,000,000
Cafeteria 500 2,000 1,000,000
Pavement/driveway 4,000 500 2,000,000
Grounds/Boundary wall 27,360 100 2,736,000
Total 43,560 34,736,000

9.5 Machinery & Equipment Requirement

Plant, machinery and equipment for the proposed project are stated below.

Table 5: Machinery & Equipment

Description Quantity Unit Cost Total Cost
(Rs.) (Rs.)

Slaughter and Meat Processing line 1 45,000,000 45,000,000

Cold Storage 1 6,000,000 6,000,000
Packing line 1 4,000,000 4,000,000
Refrigerated Vehicle 2 5,500,000 11,000,000
Generator 1 2,000,000 2,000,000

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Tube well 1 1,500,000 1,500,000

Miscellaneous Expenses 1 1,000,000 1,000,000
Total 8 70,500,000

9.6 Furniture & Fixtures Requirement

Details of the furniture and fixture required for the project are given below;

Table 6: Furniture & Fixture

Description Quantity Unit Cost Total Cost
(Rs.) (Rs.)

Furniture 1 500,000 500,000

Carpeting 2,000 70 140,000
Electric wiring & lighting 1 1,000,000 1,000,000
Air conditioners (1.5 ton ) 2 75,000 150,000
Air conditioners (2 ton split) 2 95,000 95,000
Total 1,980,000

9.7 Office Equipment Requirement

Following office equipment will be required for meat processing unit and slaughter
house:
Table 7: Office Equipment
Description Quantity Unit Cost Total Cost
(Rs.) (Rs.)

Computer server (s) 1 125,000 125,000

Computers 2 50,000 100,000

Computer printer (s) 1 40,000 40,000

Laptop (s) 2 150,000 300,000

Networking cost 1 200,000 200,000

Multimedia 1 40,000 40,000

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Telephone exchange 1 150,000 150,000

Telephones 8 3,000 24,000

Fax machines 1 35,000 35,000

Copier 1 200,000 200,000

Total 1,214,000

9.8 Human Resource Requirement

In order to run operations of meat processing unit and slaughter house smoothly,
details of human resources required along with number of employees and monthly
salary are recommended as under;

Table 8: Human Resource Requirment

Description No. of Employees Monthly Salary
per person (Rs.)
Project Manager 1 90,000
Admin/Accounts officer 1 60,000
HR officer 1 40,000
Marketing officer 1 40,000
Veterinary Doctor 1 70,000
Veterinary Attendant 2 30,000
Skilled Butcher 10 25,000
Machine Operators 5 35,000
Labor 20 18,000
Tube well/Generator operator 2 25,000
cold Storage Supervisor 1 35,000
driver 2 18,000
Security guard 2 18,000
Total 49

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9.9 Utilities and other costs

An essential cost to be borne by the project is the cost of electricity and gas. The
electricity expenses are estimated to be around Rs. 1,115,588 per month.
Furthermore, promotional expense being essential for marketing of meat
processing unit and slaughter house is estimated as 1% of administrative / Cost of
Sales expenses.

9.10 Revenue Generation

Based on the capacity utilization of 70% for sheep, 70% for goat and 70% for
cattle respectively, sales revenue during the first year of operations is estimated as
under;

Table 9: Revenue Generation – Year 1

Description No. of Finished Units Sale Sales
Units Goods available Price / Revenue
Produced Inventory for Sale unit (Rs.)
(Kg) (Kg) (Kg) (Kg)
Sheep 567,000 33,075 533,925 900 480,532,500
Goat 567,000 33,075 533,925 900 480,532,500
Cattle 567,000 33,075 533,925 500 266,962,500
Total 1,701,000 99,225 1,601,775 766 1,228,027,500

10 CONTACT DETAILS
In order to facilitate potential investors, contact details of private sector Service
Providers relevant to the proposed project be given.

10.1 Machinery Suppliers

Name Address Phone Fax E-mail Website
of
Suppli
er
SOKEYU +86-371-
FA 65903478
Buiding.
info@amisyma https://www.meat-
Amisy NO.26
chine.com machinery.com/
Jingliu
Road.
Zhengzho

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u, China
243-S, +92-42- +92-42-
Quaid-e- 35116727 354006
Azam 45
Industrial +92-42-
Estate 35116728 koldkraft@brai
KoldKr https://www.koldkraft-
Kot n.net.pk
aft refrigeration.com
Lakhpat, +92-42-
Lahore 35400643
54770,
Pakistan +92-300-
0243243
Kölner +49 2191 +49
Straße / 4 234 2191 /
HABU 71 265 4 233
nfo@habur- https://www.habur-
R- D-42897 722
saws.de saws.de
SAWS Remschei
d
Germany

10.2 Technical Experts / Consultants

Name of Address Phone Fax E-mail Website
Expert/Organization

Spinny 081-
DG Livestock
Road, 9202564
Department
Quetta,
Balochistan
Balochistan

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11 USEFUL WEB LINKS

Small & Medium Enterprises Development Authority (SMEDA) www.smeda.org.pk

Government of Pakistan www.pakistan.gov.pk
Ministry of Industries & Production www.moip.gov.pk
Ministry of Education, Training & Standards in Higher Education http://moptt.gov.pk
Government of Punjab www.punjab.gov.pk
Government of Sindh www.sindh.gov.pk
Government of Khyber Pakhtunkhwa www.khyberpakhtunkhwa.gov.pk
Government of Balochistan www.balochistan.gov.pk
Government of Gilgit Baltistan www.gilgitbaltistan.gov.pk
Government of Azad Jamu Kashmir www.ajk.gov.pk
Trade Development Authority of Pakistan (TDAP) www.tdap.gov.pk
Security Commission of Pakistan (SECP) www.secp.gov.pk
Federation of Pakistan Chambers of Commerce and Industry www.fpcci.com.pk
(FPCCI)
State Bank of Pakistan (SBP) www.sbp.org.pk
Punjab Small Industries Corporation www.psic.gop.pk
Sindh Small Industries Corporation www.ssic.gos.pk
Pakistan Horticulture Development and Export Company www.phdec.org.pk
(PHDEC)
Punjab Vocational Training Council (PVTC) www.pvtc.gop.pk
Technical Education and Vocational Training Authority (TEVTA) www.tevta.org
Pakistan Readymade Garment Technical Training Institute www.prgmea.org/prgtti/
Livestock & Dairy Development Department, Government of www.livestockpunjab.gov.pk
Punjab.
Punjab Industrial Estates (PIE) www.pie.com.pk
Faisalabad Industrial Estate Development and Management www.fiedmc.com.pk
Company (FIEDMC)

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12 ANNEXURES

12.1 Income Statement

Statement Summaries SMEDA

Income Statement
Rs. in actuals
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Revenue 1,228,027,500 1,530,997,875 1,796,809,162 2,100,472,729 2,446,900,916 2,841,610,015 3,135,397,236 3,448,936,959 3,793,830,655 4,173,213,721
Cost of goods sold 1,072,316,325 1,347,028,167 1,568,235,525 1,828,497,345 2,113,129,697 2,434,857,434 2,669,169,822 2,917,082,267 3,188,057,710 3,484,243,648
Gross Profit 155,711,175 183,969,708 228,573,637 271,975,384 333,771,219 406,752,580 466,227,413 531,854,692 605,772,945 688,970,072

General administration & selling expenses

Administration expense 4,783,320 11,637,386 12,770,418 16,578,055 18,192,118 19,963,328 21,906,986 24,039,881 26,380,437 28,948,874
Rental expense - - - - - - - - - -
Utilities expense - - - - - - - - - -
Travelling & Comm. expense (phone, fax, etc.) 92,880 225,969 247,969 321,904 353,245 387,637 425,378 466,794 512,242 562,114
Office vehicles running expense 841,050 925,155 1,017,671 1,119,438 1,231,381 1,354,519 1,489,971 1,638,969 1,802,865 1,983,152
Office expenses (stationary, etc.) 46,440 112,984 123,985 160,952 176,623 193,819 212,689 233,397 256,121 281,057
Promotional expense 12,280,275 15,309,979 17,968,092 21,004,727 24,469,009 28,416,100 31,353,972 34,489,370 37,938,307 41,732,137
Insurance expense 5,551,000 4,855,725 4,160,450 3,465,175 2,769,900 4,332,157 3,465,726 2,599,294 1,732,863 866,431
Professional fees (legal, audit, etc.) 6,140,137 7,654,989 8,984,046 10,502,364 12,234,505 14,208,050 15,676,986 17,244,685 18,969,153 20,866,069
Depreciation expense 15,961,700 15,961,700 15,961,700 15,961,700 15,961,700 19,384,830 19,384,830 19,384,830 19,384,830 19,384,830
Amortization expense 517,219 517,219 517,219 517,219 517,219 - - - - -
Property tax expense - - - - - - - - - -
Miscellaneous expense 36,840,825 45,929,936 53,904,275 63,014,182 73,407,027 85,248,300 94,061,917 103,468,109 113,814,920 125,196,412
Subtotal 83,054,847 103,131,042 115,655,824 132,645,715 149,312,727 173,488,741 187,978,456 203,565,327 220,791,737 239,821,076
Operating Income 72,656,328 80,838,666 112,917,813 139,329,669 184,458,492 233,263,839 278,248,958 328,289,365 384,981,208 449,148,997

Other income - - 2,421,498 8,362,099 14,958,389 26,220,424 44,738,362 68,014,768 96,660,475 135,772,455
Gain / (loss) on sale of assets - - - - 11,214,000 - - - - -
Earnings Before Interest & Taxes 72,656,328 80,838,666 115,339,310 147,691,768 210,630,882 259,484,264 322,987,320 396,304,133 481,641,683 584,921,452

Interest expense 17,685,439 14,673,347 8,945,785 6,317,570 3,429,862 77,547 29,932 - - -

Earnings Before Tax 54,970,889 66,165,319 106,393,525 141,374,198 207,201,020 259,406,717 322,957,388 396,304,133 481,641,683 584,921,452

Tax 17,590,685 21,172,902 34,045,928 45,239,743 66,304,326 83,010,149 103,346,364 126,817,322 154,125,339 187,174,865
NET PROFIT/(LOSS) AFTER TAX 37,380,205 44,992,417 72,347,597 96,134,455 140,896,693 176,396,567 219,611,024 269,486,810 327,516,344 397,746,587

Balance brought forward 37,380,205 82,372,621 154,720,218 250,854,673 391,751,367 568,147,934 787,758,958 1,057,245,768 1,384,762,113
Total profit available for appropriation 37,380,205 82,372,621 154,720,218 250,854,673 391,751,367 568,147,934 787,758,958 1,057,245,768 1,384,762,113 1,782,508,700
Dividend - - - - - - - - - -
Balance carried forward 37,380,205 82,372,621 154,720,218 250,854,673 391,751,367 568,147,934 787,758,958 1,057,245,768 1,384,762,113 1,782,508,700

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12.2 Balance Sheet

Statement Summaries SMEDA
Balance Sheet
Rs. in actuals
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Assets
Current assets
Cash & Bank - - - 48,429,952 118,812,036 180,355,752 344,052,738 550,714,501 809,580,856 1,123,628,649 1,591,820,451
Accounts receivable - 100,933,767 113,384,604 136,759,193 160,162,269 186,878,369 217,336,066 245,630,435 270,589,076 297,647,984 327,412,783
Finished goods inventory - 66,426,675 78,883,412 91,815,148 107,029,604 123,666,671 142,470,761 155,701,573 170,163,132 185,970,033 203,247,546
Equipment spare part inventory 1,601,775 2,001,492 2,354,329 2,758,470 3,220,724 3,748,758 4,145,734 4,570,672 5,039,166 5,555,681 -
Raw material inventory 15,617,306 20,313,717 24,873,308 30,336,496 36,870,712 44,673,131 51,427,008 59,020,206 67,734,540 77,735,544 -
Pre-paid annual land lease - - - - - - - - - - -
Pre-paid building rent - - - - - - - - - - -
Pre-paid lease interest 17,805 16,601 15,102 13,239 10,922 8,040 4,457 - - - -
Pre-paid insurance 5,551,000 4,855,725 4,160,450 3,465,175 2,769,900 4,332,157 3,465,726 2,599,294 1,732,863 866,431 -
Total Current Assets 22,787,887 194,547,977 223,671,205 313,577,672 428,876,166 543,662,878 762,902,490 1,018,236,681 1,324,839,633 1,691,404,323 2,122,480,780

Fixed assets
Land 6,775,999 6,775,999 6,775,999 6,775,999 6,775,999 6,775,999 6,775,999 6,775,999 6,775,999 6,775,999 6,775,999
Building/Infrastructure 34,736,000 32,999,200 31,262,400 29,525,600 27,788,800 26,052,000 24,315,200 22,578,400 20,841,600 19,104,800 17,368,000
Machinery & equipment 82,985,000 74,686,500 66,388,000 58,089,500 49,791,000 41,492,500 33,194,000 24,895,500 16,597,000 8,298,500 -
Furniture & fixtures 1,980,000 1,782,000 1,584,000 1,386,000 1,188,000 990,000 792,000 594,000 396,000 198,000 -
Office vehicles 28,035,000 22,428,000 16,821,000 11,214,000 5,607,000 45,150,648 36,120,518 27,090,389 18,060,259 9,030,130 -
Office equipment 1,214,000 1,092,600 971,200 849,800 728,400 607,000 485,600 364,200 242,800 121,400 -
Total Fixed Assets 155,725,999 139,764,299 123,802,599 107,840,899 91,879,199 121,068,147 101,683,318 82,298,488 62,913,658 43,528,829 24,143,999

Intangible assets
Pre-operation costs 2,586,095 2,068,876 1,551,657 1,034,438 517,219 - - - - - -
Legal, licensing, & training costs - - - - - - - - - - -
Total Intangible Assets 2,586,095 2,068,876 1,551,657 1,034,438 517,219 - - - - - -
TOTAL ASSETS 181,099,981 336,381,152 349,025,462 422,453,010 521,272,584 664,731,025 864,585,807 1,100,535,169 1,387,753,291 1,734,933,152 2,146,624,779

Liabilities & Shareholders' Equity

Current liabilities
Accounts payable - 88,198,324 109,185,579 127,394,180 148,063,755 171,498,230 197,811,016 217,029,663 237,416,495 259,735,531 276,336,091
Export re-finance facility - - - - - - - - - - -
Short term debt 4,573,751 41,614,678 1,632,268 - - - - - - - -
Other liabilities - - - - - - - - - - -
Total Current Liabilities 4,573,751 129,813,002 110,817,847 127,394,180 148,063,755 171,498,230 197,811,016 217,029,663 237,416,495 259,735,531 276,336,091

Other liabilities
Lease payable 966,254 899,332 816,108 712,611 583,903 423,841 224,789 - - - -
Deferred tax - 13,277,600 13,277,600 13,277,600 13,277,600 13,277,600 10,622,080 7,966,560 5,311,040 2,655,520 (0)
Long term debt 87,779,988 67,231,026 53,961,298 38,568,413 20,712,666 - - - - - -
Total Long Term Liabilities 88,746,242 81,407,958 68,055,006 52,558,624 34,574,169 13,701,441 10,846,869 7,966,560 5,311,040 2,655,520 (0)

Shareholders' equity
Paid-up capital 87,779,988 87,779,988 87,779,988 87,779,988 87,779,988 87,779,988 87,779,988 87,779,988 87,779,988 87,779,988 87,779,988
Retained earnings - 37,380,205 82,372,621 154,720,218 250,854,673 391,751,367 568,147,934 787,758,958 1,057,245,768 1,384,762,113 1,782,508,700
Total Equity 87,779,988 125,160,192 170,152,609 242,500,206 338,634,661 479,531,354 655,927,922 875,538,946 1,145,025,756 1,472,542,101 1,870,288,688
TOTAL CAPITAL AND LIABILITIES 181,099,981 336,381,152 349,025,462 422,453,010 521,272,584 664,731,025 864,585,807 1,100,535,169 1,387,753,291 1,734,933,152 2,146,624,779

Note: Total assets value will differ from project cost due to first installment of leases paid at the start of year 0
- - - - - - - 0 (0) 0 (0)

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Pre-Feasibility Study Meat Processing Unit and Slaughter House

12.3 Cash Flow Statement

- - - - - - - 0 (0) 0 (0)

Statement Summaries SMEDA

Cash Flow Statement
Rs. in actuals
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Operating activities
Net profit - 37,380,205 44,992,417 72,347,597 96,134,455 140,896,693 176,396,567 219,611,024 269,486,810 327,516,344 397,746,587
Add: depreciation expense - 15,961,700 15,961,700 15,961,700 15,961,700 15,961,700 19,384,830 19,384,830 19,384,830 19,384,830 19,384,830
amortization expense - 517,219 517,219 517,219 517,219 517,219 - - - - -
Deferred income tax - 13,277,600 - - - - (2,655,520) (2,655,520) (2,655,520) (2,655,520) (2,655,520)
Accounts receivable - (100,933,767) (12,450,837) (23,374,589) (23,403,076) (26,716,099) (30,457,697) (28,294,369) (24,958,642) (27,058,908) (29,764,798)
Finished good inventory - (66,426,675) (12,456,737) (12,931,736) (15,214,455) (16,637,067) (18,804,090) (13,230,812) (14,461,559) (15,806,901) (17,277,513)
Equipment inventory (1,601,775) (399,717) (352,837) (404,140) (462,254) (528,035) (396,976) (424,938) (468,494) (516,515) 5,555,681
Raw material inventory (15,617,306) (4,696,411) (4,559,591) (5,463,188) (6,534,216) (7,802,419) (6,753,878) (7,593,198) (8,714,333) (10,001,005) 77,735,544
Pre-paid building rent - - - - - - - - - - -
Pre-paid lease interest (17,805) 1,205 1,498 1,863 2,317 2,882 3,584 4,457 - - -
Advance insurance premium (5,551,000) 695,275 695,275 695,275 695,275 (1,562,257) 866,431 866,431 866,431 866,431 866,431
Accounts payable - 88,198,324 20,987,255 18,208,601 20,669,575 23,434,475 26,312,787 19,218,647 20,386,832 22,319,036 16,600,560
Other liabilities - - - - - - - - - - -
Cash provided by operations (22,787,887) (16,425,043) 53,335,362 65,558,601 88,366,539 127,567,091 163,896,038 206,886,551 258,866,355 314,047,794 468,191,802

Financing activities
Change in long term debt 87,779,988 (20,548,962)
Change in short term debt 4,573,751 37,040,926
Change in export re-finance facility - -
Add: land lease expense - -
Land lease payment - -
Change in lease financing 966,254 (66,922)
Issuance of shares 87,779,988 - -
Purchase of (treasury) shares - -
Cash provided by / (used for) financing activities 181,099,981 16,425,043
(13,269,728) (15,392,885) (17,855,747) (20,712,666) - - - - -
(39,982,410) (1,632,268) - - - - - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
(83,224) (103,497) (128,709) (160,062) (199,052) (224,789) - - -
- - - - - - - -
- - - - - - - - -
(53,335,362) (17,128,650) (17,984,455) (20,872,728) (199,052) (224,789) - - -

Investing activities
Capital expenditure (158,312,094) - - - - (45,150,648) - - - - -
Acquisitions - - - - - - - - - - -
Cash (used for) / provided by investing activities(158,312,094) - - - - (45,150,648) - - - - -

NET CASH - - - 48,429,952 70,382,084 61,543,716 163,696,986 206,661,762 258,866,355 314,047,794 468,191,802

Cash balance brought forward - - - 48,429,952 118,812,036 180,355,752 344,052,738 550,714,501 809,580,856 1,123,628,649
Cash available for appropriation - - - 48,429,952 118,812,036 180,355,752 344,052,738 550,714,501 809,580,856 1,123,628,649 1,591,820,451
Dividend - - - - - - - - - - -
Cash carried forward - - - 48,429,952 118,812,036 180,355,752 344,052,738 550,714,501 809,580,856 1,123,628,649 1,591,820,451

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Pre-Feasibility Study Meat Processing Unit and Slaughter House

13 KEY ASSUMPTIONS

13.1 Production
Description Details
Production Year 1 (kg) 1,701,000

13.2 Revenue Assumptions

Description Details
Sales Revenue (Rs.) 1,228,027,500

13.3 Financial Assumptions

Description Details

158,312,094
Total Capital Cost

18,219,081
Total Working Capital

176,531,176
Total Project Cost

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