Project Cost/Equity Contribution

Cost Item Exist Proposed

ing
Owner's Loan Owner' Loan Total
Contributi s Cost
on Contrib
ution
Fixed Assets
Building
16 poultry sheds 873,200.00 6,000,000.00 6,873,200.00
Store 150,000.00 200,000.00 350,000.00
Workers Hut 75,000.00 75,000.00
Officers Quarters 150,000.00 850,000.00 1,000,000.00
Plant, Machinery, Vehicles and other fixed Assets
02 No of motor cycles
210,000.00 210,000.00
01 No of Hand Tractor
350,000.00 350,000.00
01 No of Truck Vehicle
600,000.00 600,000.00
Water supply system 100,000.00 200,000.00 300,000.00
01 No of Weighting balance hanging
15,000.00 15,000.00
01 no of Weighting
balance flat model 65,000.00 65,000.00
01 No of refrigerator 26,000.00 26,000.00
Administration and Management Fixed Assets and Equipment
Office equipments/furniture
10,000.00 10,000.00
Telephone 01 6,000.00 6,000.00
Fixed Assets Total ( a)
9,880,200.00
Pre Operative
Expenses
Deposit to chick supplier
10,000.00 800,000.00 810,000.00
Total Pre Operative
Expenses ( b )
810,000.00
Working Capital Expenditure
Total working
Capital Expenditure( c )
2,380,000.00 3,500,000.00 5,880,000.00
Total Project Cost a + b + c
4,070,200 12,500,000 16,570,200.00
Investment Contribution %
Investment Contribution %
24.56% 75.44% 100.00%
 Profitability forecast
Proposed
Item 1st Year 2nd Year
Sales Account
Sales 57,242,400 66,112,800
Less : BTT 1% 0 0
Net Sales A 57,242,400 66,112,800
Production Account
1.Chicks 350*3000*45+ Working 14,040,000.00
2.Feeds capitol
2.1.Starter 17,784,000.00
2.2.finisher 20,280,000.00
3.Medicines 624,000.00
4.Transport 468,000.00
5.Salary 936,000.00
6.Other Expenses 468,000.00
Total Production cost 53,130,000 54,600,000.00
Gross profit 4,112,400 11,512,800
Management &
Administration Account
Insurance for Vehicles 20,000 20,000
Stationery 5,000 5,000
Welfare 10,000 10,000
Other 5,000 5,000
Total Administration Cost 40,000 40,000

Depreciation of building 729,820 729,820

Depreciation of Plant,
Machinery, Vehicles and
other fixed Assets
156,600 156,600
Depreciation of
Administration and
Management Equipment

2,200 2,200
Depreciation of Officers
Quarters 50,000 50,000
Lone Interest 900,000 700,000
*Pre-Operation Expenses 162,000 162,000

Net Profit before tax 2,073,980 9,674,380

Income Tax 0 0
Net Profit after Tax 2,073,980 9,674,380

* Pre-Operation Expenses would be covered during 5 years.

d
3rd Year
 162,000

,674,380
 Working Capital
Costing item Rate per unit Requirement per
bird

Cost for bird

1.Chicks 90 1 ###
2.Feeds
2.1.Starter 71 1.6 ###
2.2.finisher 68 1.9 ###
3.Medicines 4 1 4
4.Transport 3 1 3
5.Salary 6 1 6
6.Other Expenses 3 1 3
Cost for per bird 350

A. 4 Batchers required full working capital = 4×3000×350= 4,200,000.00

B. 2 Batchers required 80% of working capital = 2×3000×350×.8= 1,680,000.00

Full working capital requirement = 5,880,000.00

200,000.00
×.8= 1,680,000.00
 Loans Repayment Schedule

Name of the loan

Loan Amount 8,000,000
Period of Repayment 5 Years
Interest Rate 5%
Guarantee
Personal Assets

Annual Annual
Installme Interest
nt of
Loan Balance of loan loan (B) Loan Balance Total Monthly
in start of the (A) in End of the Installment
Year Year ((A+B)/12)

Year
1 ### 1,600,000 400,000 6,400,000.00 166,667
2 ### 1,600,000 320,000 4,800,000.00 160,000
3 ### 1,600,000 375,000 5,900,000.00 164,583
4 ### 1,600,000 250,000 3,400,000.00 154,167
5 ### 1,600,000 125,000 900,000.00 143,750
Monthly Monthly
Principal Interest
Instalment Installment

133,333.33 33,333
133,333.33 26,667
133,333.33 31,250
133,333.33 20,833
133,333.33 10,417
4.5.Financial Analysis

Rate of Net
profit before tax = Net profit before × ###
Net Sales
For the 1st Year = 2,073,980×100 = 3.62%
57,242,400

For the 2nd Year = 9,674,380 × 100 =

66,112,800

Rate of
Investment = Net profit before × ###
Total Project Cost

For the 1st Year = 2,073,980 × ### =

16,570,200.00

For the 2nd Year = 9,674,380 × ### =

16,570,200.00
14.63%

###

###
4.6.Cash Flow Statement
Description Existing Year Proposed
(LKR) 1st Year 2nd(Naira)
Year 3rd Ye.
Cash Inflow
Client 4,070,200
Contribution
Loan 12,500,000
Sales Income 0 57,242,400.00 66,112,800.00
(Net)
B/F 0 5,880,000.00 6,552,400.00
Total Cash 16,570,200.00 63,122,400.00 72,665,200.00
Inflow
Cash
Outflow
Land 0
Building
16 6,873,200.00
poultry
sheds
Store 350,000.00
Workers 75,000.00
Hut
Officers 1,000,000.00
Quarters
Total 8,298,200.00
Machinery &
Equipment
02 No of 210,000.00
motor
cycles
01 No of 350,000.00
Hand
Tractor
01 No of 600,000.00
Truck
Vehicle
Water 300,000.00
supply
system
01 No of 15,000.00
Weighting
balance
hanging
 01 no of 65,000.00
Weighti
ng
balance
flat model
01 No of 26,000.00
refrigera
tor
Office 10,000.00
equipme
nts
/furnitur
Telepho 6,000.00
ne 01
Total 1,582,000.00
Pre-Operating 810,000.00
Expenses

Direct 53,130,000.00 54,600,000.00

Material
Expenses
Management 40,000.00 40,000.00
&
Administratio
n
Expenses
Lone 2,500,000.00 2,500,000.00
Lone interest 900,000.00 700,000.00
Total Cash 10,690,200.00 56,570,000.00 57,840,000.00
Outflow
Closing Cash 5,880,000.00 6,552,400.00 14,825,200.00
Balance