Académique Documents
Professionnel Documents
Culture Documents
NAME OF PARTNERS:
INTRODUCTION
GUL FLOUR MILLS is a partnership concern proposed to set up flour mill at khanewal
road, Multan.land measuring 24 kanals already acquired.
There is no need to obtain any license/permission from Government for setting up a flour
mill. The project cost has been estimated as Rs.287.946 Million including the working
capital. The sponsors of the project will contribute Rs.287.946 Million.
SUMMARY PROJECT
The project is estimated to complete at total cost of Rs. 287.946 Million which is
Summarized as under.
LAND 3.6
BUILDING 5.996
MACHINERY 220.0
ELECTRICITY CONNECTION FEE 3.0
INITIAL INVESTMENT
BUILDING 5.996
DESCRIPTION PROPOSED.
DETAIL OF MACHINERY
(In Million)
Complete 10 bodies’ roller flour mills along with Electric motors, switches, starters,
Panel board and installation charges.
Total 220
WORKING CAPITAL
(in million)
Year 1 2 3 4 5
Year 1 2 3 4 5
(in million)
Year 1 2 3 4 5
Raw material (wheat) 1319.97 1414.26 1508.544 1508.544 1602.828
Year 1 2 3 4 5
Used 70% 75% 80% 80% 85%
capacity
Year 1 2 3 4 5
No. unit 1,360,800 1,458,000 1,555,200 1,555,200 1,652,400
Expected sales (revenue in million)
Year 1 2 3 4 5
(in million)
Installed cost of plant 220
Year 1 2 3 4 5
SALES 1469.66 1574.64 1679.616 1679.616 1784.592
(-)OPERATING EXPENSES 1374.402 1472.579 1570.74 1570.748 1668.924
E B T & DEPRICIATION 95.258 102.07 108.876 108.86 115.668
(-) DEPRICIATION 45.199 45.199 45.199 45.199 45.199
EBT 50.059 56.871 63.677 63.661 70.469
(-) TAX (40%) 20.023 22.748 25.463 25.464 28.187
EARNING AFTER TAX 30.036 34.123 38.214 38.197 42.282
(+) DEPRICIATION 45.199 45.199 45.199 45.199 45.199
AFTAR TAX CASH FLOW. 75.235 79.322 83.413 83.396 87.481
Payback period
0 (287.946) (287.946) 0
1 75.235 212.711 1
2 79.322 133.389 1
3 83.413 49.976 1
4 83.396 NIL 3 years 7 month 5days
5 87.481
= 12.65%
Profitablity Index
PI= pv of operating cashflows
Initial investment
= 293.221
287.946
=1.018