COST OF PROJECT

Particulars Amount
Land and site development 1000000
Building and civil works 880000
Plant and machinery 200000
Preoperative expenses 10000
Minimum cash requirement 110000
total 2200000

BUILDING AND CIVIL WORKS

Particulars Amount
Office and Security building 500000
Warehouse 200000
Workstation 180000
Total 880000

PLANT AND MACHINERY

Particulars Amount
Equipment 150000
Generator 50000
Total 200000

PREOPERATIVE EXPENSE

Particulars Amount
TIN 3000
Trade license 5000
Miscellaneous expense 2000
Total 10000
 MEANS OF FINANCE

Particulars amount
Total capital requirement 2200000
Long term loan 700000
Equity supplied by owners 1500000
Interest on loans 12%
Loan period 5 years
Installment payment annually

COST OF PRODUCTION

Particulars 2014 2015 2016 2017 2018

Direct cost:
Material cost 50000 52000 55000 58000 60000
Labor cost 120000 140000 170000 190000 220000
Prime cost 170000 192000 225000 248000 280000
Factory
Overhead:
Utilities cost 80000 84000 87000 90000 94000
Depreciation 10000 10000 10000 10000 10000
Work cost 260000 286000 322000 348000 384000
Administrative
overhead:
Supervisor 50000 50000 50000 50000 50000
salary
maintenance 10000 10000 10000 10000 10000
Cost of 320000 346000 382000 408000 444000
production:

WORKING CAPITAL REQUIREMENT

Particulars 2014 2015 2016 2017 2018

Raw material 50000 52000 55000 58000 60000
Labor cost 120000 140000 170000 190000 220000
Factory 90000 94000 97000 100000 104000
overhead
Administration 60000 60000 60000 60000 60000
overhead
Total 320000 346000 382000 408000 444000
 LOAN REPAYMENT SCHEDULE

Year Loan Loan at 12% interest Principal Ending balance

installment begining payment payment
1 194187 700000 84000 110187 589813
2 194187 589813 70778 123409 466404
3 194187 466404 55968 138219 328185
4 194187 328185 39382 154805 173380
5 194187 173380 20806 173380 -

DEPRECIATION

Particulars Book value Life Period Salvage value Depreciation

amount
Equipment 150000 5 years 5000 29000
Building 880000 20 years 50000 41500
Generator 50000 5 years - 10000
Total 1080000 55000 55000 80500

ADMINISTRATION AND SELLING EXPENSE

Particulars 2014 2015 2016 2017 2018

Salary 200000 200000 200000 200000 200000
Advertising 7000 7000 7000 10000 10000
others 3000 3000 3000 5000 5000
total 210000 210000 210000 215000 215000

PROFITABILITY PROJECTION

Particulars 2014 2015 2016 2017 2018

1. Cost of
production
Raw material 50000 52000 55000 58000 60000
Labor 120000 140000 170000 190000 220000
Factory
overhead
utilities 80000 84000 87000 90000 94000
depreciation 10000 10000 10000 10000 10000
Administrative 60000 60000 60000 60000 60000
and Selling
expense
2. total cost of 320000 346000 382000 408000 444000
production
3. expected sales
Vegetables 1500000 1700000 1800000 2000000 2200000
Fish 434500 436000 438000 440000 442000
Total sales 1934500 2136000 2238000 2440000 2642000
4. Gross profit 1614500 1790000 1856000 2032000 2198000
Administration 210000 210000 210000 215000 215000
and selling
expense
5. Operating 1404500 1580000 1646000 1817000 1983000
profit
6. total financial
expense:
Interest (12%) 84000 70778 55968 39382 20806
Depreciation 70500 70500 70500 70500 70500
7. Net operating 1250000 1438722 1519532 1707118 1891694
profit
8. Preliminary - - - - (10000)
expense
9. Earnings 1250000 1438722 1519532 1707118 1881694
before tax
10. provision for 500000 575489 607813 682847 752678
Tax (40%)
11. Earnings 750000 863233 911719 1024271 1129016
after Tax
12. Dividend - - 18234 204854 225803
(20%)
13. Retained 750000 863233 893485 819417 903213
Earnings current
year
14. Depreciation 80500 80500 80500 80500 80500
15. preliminary - - - - 10000
expenses
Net cash 830500 943733 973985 899917 993713
accruals

PROJECTED INCOME STATEMENT

For the year ended 2014-2018

Particulars 2014 2015 2016 2017 2018

Facility 50% 60% 75% 82% 95%
utilization
Sales revenue:
Vegetables 1500000 1700000 1800000 2000000 2200000
Fish 434500 436000 438000 440000 442000
Total sales 1934500 2136000 2238000 2440000 2642000
Cost of goods 320000 346000 382000 408000 444000
sold
Gross profit 1614500 1790000 1856000 2032000 2198000
Administration 210000 210000 210000 215000 215000
and Selling
expense
Operating 1404500 1580000 1646000 1817000 1983000
profit
Interest (12%) 84000 70778 55968 39382 20806
Depreciation 70500 70500 70500 70500 70500
Preoperative - - - - 10000
expenses
Earnings 1250000 1438722 1519532 1707118 1881694
Before Tax
Provision for 500000 575489 607813 682847 752678
Tax
Earnings After 750000 863233 911719 1024271 1129016
Tax

PROJECTED CASH FLOW STATEMENT

Particulars 2014 2015 2016 2017 2018

Cash flow from
operating
activities:
Earnings After Tax 750000 863233 911719 1024271 1129016
Depreciation 80500 80500 80500 80500 80500
Pre operative - - - - 10000
expense
1. Net cash from 830500 943733 992219 1104771 1219516
operating
activities
Cash flow from
investing
activities:
Initial cost of 2200000 - - - -
project
2. Net cash from 2200000 - - - -
investing
activities
Cash flow from
financing
activities:
Increase in equity 1500000 - - - -
Increase in term 700000 - - - -
loan
Repayment of (110187) (123409) (138219) (154805) (173380)
loan
Dividend paid - - (182344) (204854) (225803)
3. Net cash from 2089813 (123409) (320563) (359659) (399183)
financing
activities
4. Net 5120313 820324 671656 745112 820333
increase/decreas
e in cash
Opening cash 110000 5230313 6050637 6722293 7467405
balance
Closing cash 5230313 6050637 6722293 7467405 8287738
balance

PROJECTED BALANCE SHEET

Particulars 2014 2015 2016 2017 2018

Liabilities and
Owner’s
equity
Current
liabilities
Long term
liabilities
Long term loan 700000 589813 466404 328185 173380
Repayment of (110187) (123409) (138219) (154805) (173380)
loan
Retained (84500) (61778) (16430) 86634 200765
earnings
Equity capital 1500000 1500000 1500000 1500000 1500000
Total liabilities 2005313 1904626 1811755 1760014 1700765
Assets:
Current assets
Cash 4395813 4366537 3441953 2361865 2200038
Total current 4395813 4366537 3441953 2361865 2200038
assets
Fixed assets:
Land 1000000 1000000 1000000 1000000 1000000
Equipment 150000 121000 92000 63000 34000
(-)Depreciation (29000) (29000) (29000) (29000) (29000)
total 121000 92000 63000 34000 5000
Building 880000 838500 797000 755500 714000
(-)Depreciation (41500) (41500) (41500) (41500) (41500)
total 838500 797000 755500 714000 672500
Generator 50000 40000 30000 20000 10000
(-)Depreciation (10000) (10000) (10000) (10000) (10000)
total 40000 30000 20000 10000 -
Preoperative 10000 10000 10000 10000 10000
expense
Preoperative - - - - (10000)
expense
written off
Total fixed 2009500 1929000 1848500 1768000 1677500
assets
Total asset 6405313 6295537 5290453 4129865 3877538

PAYBACK PERIOD

year Cash flows Cumulative cash flow

Year 0 2200000
1 750000 750000
2 863233 1613233
3 911719 2524952
4 1024271 3549223
5 1129016 4678239

Payback period= A + (NCO-C)/D

=2.23 years

NPV

Year Discount rate Cash flows Discounted cash NPV@ 6%

flows
0 (2200000)
1 750000 707547
2 863233 768274
3 6% 911719 765497 1696303
4 1024271 811319
 5 1129016 843666
total 3896303

IRR

Years Discount rate Cash flows Discounted cash NPV@ 30%

flows
0 (2200000)
1 750000 576923
2 863233 510789
3 30% 911719 414984 -34602
4 1024271 358626
5 1129016 304077
total 2165398

IRR= LR+ {NPVlr/(NPVlr-NPVhr)}*(HR-LR)

=6% + { 1696303/ (1696303+ 34602)}* (30%-6%)

=29.52%