Sugar Mill

M.
com Finance Project On Sugar Mill 4th semester
A Project Report On Mamoon Sugar Mills

Private Limited
Islamia University Bahawalpur Department Of Commerce

M.com Finance Project On Sugar Mill 4th semester

Words of Quran;
“OH! PROPHET SAY! IF OCEANS ARE

CONVERTED INTO INK TO WRITE QUALITIES OF MY
CREATOR, THEN WHOLE OCEANS WOULD CONSUME IN
WRITING BEFORE IS QUALITIES COME TO AN END. AND
EVEN IF WE PRODUCE THE LIKE OF INK WOULD
INSUFFICIENT”.
(AL-
KAHAF)

Sr. No.
Contents
1 Preface
2 Acknowledgement
3 Dedication
3 Table of contents
4 Table of Annexure
5 Executive Summary
6 Introduction of company
7 Location for plant
8 Product Range
9 Market Analysis
10 Process flow
11 Ratios Analysis
13 SWOT Analysis
14 Technical analysis
15 Personnel Analysis
16 Projected income statement
17 Projected Balance Sheet
18 Projected Cash Flow Statement
20 Suggestions and Recommendations

Project Managers…
Project Management is an integral part of M.com (Finance)

program, because it gives us the practical knowledge of what we
have learnt during our study period.
Now a day the business environment keeps on changing
everywhere. New dimensions of business are coming before us.
These dramatic and dynamic changes in business world require
the specialties about the all aspects of business of today. Because
of these requirements business knowledge became important and
business education becomes the need of time. The person with
latest knowledge can survive in this vast field.
But practical knowledge is also necessary along with the
theoretical knowledge. This made the Project Management and
Appraisal an integral part of M.com (Finance). One can see how
the theories and knowledge are being practically implemented.
This report is about the Sugar Mill. We prepared the financial
data of company and this report carried the information about
organizational, financial data, strengths and weaknesses of
Sugar Mill.

We pay our humble gratitude, with humility and submission,

to ALLAH, the Almighty, the Omniscient, the Omnipotent & the
Omnipresent, who bestowed our potential to accomplish this task.
The completion of this issue is, mere, the blessing of ALLAH and
Holy Prophet Hazrat Muhammad (Saw).
Secondly, we must mention “Sir Javed Iqbal” for being kind
enough to extend his baseline guidance in the completion of this
project report.
We also thank everyone else including our respectable
teachers and outspoken friends of the Department who helped in
one way or another in the completion of this project.

TO OUR
PARENTS
&
TEACHER
Sir Javed Iqbal
The Chairman Of Department Of Commerce

The sugar industry plays an important role in the economy of the

country. It is the second largest industry after textiles. At the time of
independence in 1947, there were only two sugar factories in Pakistan.
The output of these factories was not sufficient for meeting the domestic
requirements. The country started to import sugar from other countries
and huge foreign exchange was spent on this item. Need was felt to
increase the production of sugar. Keeping in view the importance of
sugar industry, the Government setup a commission in 1957 to frame a
scheme for the development of sugar industry. In this way the first sugar
mill was established at Tando Muhammad Khan in Sindh province in the
year 1961. At present there are 76 sugar mills operating in Pakistan. The
Sugar industry employs over 75000 people, including management
experts, technologists, engineers, financial experts, skilled, semiskilled
and unskilled workers. It contributes around 4 billion rupees only under
the head of excise duty and other levies to the Government are also
paramount significance. The output of sugar as well as the production of
sugarcane increased at an average rate 24 percent and 11.7 percent. But
the increased out put could not meet the requirements

Mammon sugar mills is located at Hasilpur road for this purpose we

acquire 400 canals. Our project has a capacity of producing 10000 bags per
day in 3 shifts of 8 hours each. We purchase sugarcane as raw material from
sadiqabad and qusoor @ 230 rupees per Mann we also purchase some
chemicals which is used in production process.
We require heavy machinery from “Heavy Mechanical Complex’’ (HMC)

our project includes 40% of equity and 60% debt. We obtained this debt
from The Bank Of Punjab.
Our main product is sugar and molasses and mud as by product. We sell
sugar in 50 kg bags. We also sell molasses in Karachi and mud to the
farmers they use it as fertilizers.

Name of the Project: Mamoon Sugar Mill
Location for our sugar mill is Hasilpur Road. The reasons for
choosing this area are as follows.
• This area is not classified under residential area and the City authority
for industry location has approved it as an industrial state. So it is
best for industry. Moreover here is no residential colony near so we
will not find the problem to set up our plant there.
• The main BWP City is near to this area so we can capture the market
of the city. Moreover raw material and labor can be achieved from the
city that is close so the high cost on getting labor and transport from
other city can be saved.
• BWP is situated between Multan, Rahim Yar Khan and
SADIQABAD. Also a link with Hasilpur too. So establishing our
plant there will be a great opportunity to capture the market of these
cities too. Labor and raw material can also be achieved from these
areas as these are related with agriculture sector.
• As concerned with infrastructure, roads and all means of
communication, BWP provides great opportunities. So that area
insures us quick delivery and supply of material, communication and
link with other markets. Better ways to communicate and well
position of roads and infrastructure will help to enhance our goodwill
in markets.
• As our concerned product is related with agriculture sector and this
area is purely an agriculture sector so raw material will be easily

available. We don’t need to move far away for raw material. This will
save our cost. Low production cost will lead towards low per unit
cost.
• Facility of railway station is available there too. Receiving and
forwarding the material through railway means can be proved
beneficial for us.
By taking into account all the above reasons and facilities and considering the
facilities that are related to that specific area we can prefer this area, perfect for
becoming an industrial state. Only need to be taking a step that will lead our plant
towards great opportunity for profit and goodwill.
Sugar
Our main product is sugar we produce white refined
sugar 10000 bags
Per day. We produce 8 kg sugar from 40 kg of
sugar cane.

Molasses
Our Sugar Mills also manufactures
molasses in bulk. It is also the main
product of our sugar mill.
Mud
We sell mud to farmers

They use it as a fertilizer.
Installed Capacity of the Project:

The installed capacity of the project at 100% is 10000 sugar bags
produced daily with 3 shifts in 24 hours. The duration of our production is 4
months.
PRODUCT Sugar
PRODUCTION CAPACITY 100%
Sugar bag of 50 kg 10000
Molasses in liter 1200
Mud 50 kg bags 25000
Working days p.a. 120

No. of Shifts per day 3

Estimated Production
2011 2012 2013

a) Production of Suger 960 1,020 1,080
b) Porduction of Molasses 115 122 130
c) Muds 2,400 2,550 2,700
Estimated Cost of the Project:

We have decided in this report we have used different techniques that are
necessary to make any investment decision. By working at this company we
find so many useful insights about juice manufacturing sector. We have
decided “Hsailpur Road” as location for plant. The Estimated cost of
project is Rs.
Fig.1.3
Fixed Cost 4,186,020000
Initial Working Capital 178,980000
Total 4,365,000000
Means of Finance:
Our means of finance is divided on Debt and Equity at 60:40. The
long-term loan is 2,619,000 at the rate of 16% for 5 years and the remaining
cost of project is invested two partners 1,746,000 equally.
Fig.1.4
Means of Finance
Debt 2,619,000
Equity
Capital 1,746,000
Total 4,365,000
Debt Equity Ratio 60:40

Name of Lander:
The Bank of Punjab Pakistan is the name of institute that provide us
loan at the rate of 16%.
Name of Sponsors:
Muhammad Mudassir Basher
Salman Saeed
Name of Civil Contractor:

We get this facility by Mr. Muhammad Yaseen. He Construct a
building of our company and provide necessary information.
Address: Apna Home Designer Hasil Pur Road Bahawalpur.

Contact Number: 0301-3334445 0301-3334443
Machinery Suppliers
Heavy Mechanical Complex (HMC)

Telephone : 92-51-9270562 ( 4Lines )
92-596-9314181
Fax : 92-51-9270560,
92-0596-9314202 , 9314203
Telex : 5607 HMC PK, 5512 HFF PK

E-mail : [email protected]
[email protected]
[email protected]
[email protected]

Implementation Schedule:
• The sanction date of above proposed project is 17th May 2010
• The legal formalities of the proposed project will be completed by 20th
June 2010
• Civil work will start as soon as the legal formalities are fulfilled and the
loaned amount is obtained.
• Civil work will take the time period of approximately of 5 months and
will start from the 1st August 2010
• At 1st June 2009 machineries will be ordered
• Delivery of machines will take 3 months and the machinery will be at site
at 5th September 2009
• The machinery will be installed in at least 1 year and it will be ready to
start its trial once operations by the end of 1st September 2010
• The trial once operations will take period of one months and it will end
by the end of 1st October the project will start its commercial operations
from the 31st October 2010.

1) Current Ratio= Current Assets/Current Liabilities
2011 2012 2013
1.85 2.35 3.05

Interpretation:
An indication of a company's ability to meet short-term debt

obligations; the higher the ratio, the more liquid the company is. Current

ratio is equal to current assets divided by current liabilities. If the current

assets of a company are more than twice the current liabilities, then that
company is generally considered to have good short-term financial strength.
If current liabilities exceed current assets, then the company may have
problems meeting its short-term obligations. In the above case there is
positive trend.
2) Quick ratio = Current Assets-(Ending inventory-

Prepaid expenses- A/R) /Current Liabilities
2011 2012 2013
0.91 time 0.79 time 0.79 times
Interpretation:
A stringent test that indicates whether a firm has enough short-term

assets to cover its immediate liabilities without selling inventory. The acid-
test ratio is far more strenuous than the working capital ratio, primarily
because the working capital ratio allows for the inclusion of inventory
assets. There is rapid Positive trend and then slightly negative trend as the
ratio is decreasing.
3) Cash ratio= cash equivalent+marketable sec/current

Liability.
2011 2012 2013
0.95 times 1.57 times 2.26times

Interpretation:
The cash ratio measures the extent to which a corporation or other

entity can quickly liquidate assets and cover short-term liabilities, and
therefore is of interest to short-term creditors. In the above case there is
increasing trend that shows a positive sign.
4) Gross Profit Margin = Gross profit/ sales
2011 2012 2013
65.66% 67.87% 68.17%
Interpretation:
The Gross income margin includes only Gross income in the

numerator. In the above case there is increase from year 2011 to year 2013
in the Gross income margin percentage. Which show a favorable trend in
gross profit margin.

5) Operating profit margin = Operating profit/ sales
2011 2012 2013

65.53% 67.75% 68.05%
Interpretation:
The operating income margin include only operating income in the
numerator. In the above case there is much increase from year 2011 to year
2013 in the operating income margin percentage.
6) Net Profit Margin = Net Profit/ sales
2011 2012 2013
35.77% 34.89% 36.00%
Interpretation:
This ratio gives a measure of net income Rs. Generated by each Re. of
sale. While it is desirable for this ratio to be high. In the above case there is
quick increasing trend which is very much favorable.

7) Debt/Equity Ratio = Total Long-term Debt/Equity
2011 2012 2013

0.59 0.20 0.13
Interpretation:
Debt is also very low hence there is very low risk involved in the
business. The company can easily cover the debts.
Net Amotrizatio in/outflo

Number of Years Proft Dep. n w
(100,
0 0 0 0 000)
46, 5 54
1 710 ,311 931 ,952
61, 5 68
2 827 ,311 931 ,069
70, 5 77
3 826 ,311 931 ,068
IRR 40%
Fig.1.34

Pay-Back Peroid
Total Investment 100,000

Total Inflow 194,089
2


Strengths
The company has always valued its employees as partner in progress. The
company‘s intellectual capital is of great value to the company. These partners
have always made a difference through their hard work, commitment and fresh
ideas.
1. A very good culture. There is an environment of learning that allows people

to work in teams and learn from one and other.
4. A very progressive management approach. Management always strives

to adopt better methods and practices. Quality circles are formed to highlight
problems, study them, and come up with workable solutions to improve
operations
Weaknesses:
a) Lack of Entrepreneurship
b) Company newly formed
Opportunities
Consumption of sugar is increasing every year. It means increasing demand of
company’s products which mean more growth opportunities
.
Threats:
1. Manufacturing sugar is a fast growing business. Local players are entering

into the business so competition is increasing. So it will become difficult in
future to maintain good profit margin.

2. Increasing prices of raw material has caused the cost of production.

Increased costs of transportation are also increasing the cost of doing
business.
3. Increasing oil prices and energy crises in country has created problem for the
company in the face of foreign companies. Cost of production is increasing
on one hand and the company is unable to avail opportunities on
international level.
4. Water pollution and air pollution may increase
5. WTO is a main threat for sugar manufacturers in Pakistan due to their

heavy cost of production that is due to heavy sales taxes and other indirect taxes.
At the present rate of growth in the sugar industry by way of addition new sugar
mills seems to be very fast as about 12 sugar mills would come into operation in
1996-97. There would thus be a production surplus during 1997-98 through 1998-
99. Another 6 to 8 sugar mills are in advance stage of processing with various
Banks. These sugar mills include Raja, Qand Ghar, Madina, Sheikhoo, Seri etc.
Thus there will be shortage of sugar cane to feed all these mills and a need for
rationalization of the expansion of the industry.
Sugar industry is the second biggest industry of Pakistan first being textile. It
employs more than 30,000 workers and contributes Rs. 6380.395 million to the
GDP. In 1994-95 it has entered into the export field and earned Rs. 1204 million in

foreign exchange in 1993-94 by exporting 121,561 tonnes of sugar. At present the
industry has been faced with a number of problems. Some of these problems have
been briefly discussed in the following paragraphs
.
LOCAL MARKET.
There is only 1 sugar mill working in Bahawalpur named ashraf sugar

mills limited but the sugar usage in our country is very high so the
production of sugar is not increasing as demand or need increasing. So its
our advantage that there is only 1 competitor by our production we will not
only fulfill the needs of our area but we can supply sugar in other areas &
provinces as well.
Production in Pakistan during last 10 years.
Name of Sugar Mills Operatings In Bwp
Ashraf Sugar Mills LTD

Ashraf abad bahawalpur
Tel: 062-2870361-3
Fax: 062-2870593

Demand of sugar in Pakistan
Table 4:
PROJECTION OF DEMAND AND SUGAR PRODUCTION
CAPACITY 1998/99-2004/5
Year Population Domestic Projected Sugar
In Million Consumption Prod: Capacity In
in Tones Tones
1998-99 134.51 2959000 3530850
1999- 137.51 3025220 2414746
2000
2000-01 140.94 3100680 3304360
2001-02 144.47 3178340 3304360
2002-03 148.08 3257760 3304360
2003-04 151.78 3339160 3304360
2004-05 155.58 4322760 3304360
Source: Government of Pakistan, Economic Survey, 1999-
2000, Islamabad, 2000, Statistical Section P.07
Prices
Exe factory price per kg Whole sale price per kg Retail price per kg
56.7 60 63

Analysis of technical and engineering aspects is done continually

when a project is being examined and formulated. Other types of analysis
are closely intertwined with technical analysis.
The broad purpose of technical analysis is (a) to ensure that the
project is technically feasible in the sense that all the inputs required to set
up the project are available, and (b) to facilitate the most optimal
formulation of the project in terms of technology, size, location, and so on.
Manufacturing
Process
Sugarcane is a perennial herb belonging to the grass family. Native to tropical and
subtropical regions of the world, this tropical grass is 10-24-feet tall. bears long,
pointed leaves, and has several stalks. The segmented stalks have a bud at each
joint and as the plant matures, small flowers appear.
PLANTING
Sugarcane cuttings are planted in fields by workers or mechanical planters. In
order for the cane to grow, the seeds must be planted in well-drained soil. Typical
cane soil is made of a mixture of silt, sand, clay particles and organic matter. Canes
are spaced at least 4-feet apart and lined in rows and covered with soil. Fertilizers
are applied from the time of planting up until the beginning of the ripening period.
Cane fields are also routinely weeded to provide for optimum growth of the cane.
Depending on the region where the crop is planted, cane seasons last from 8-22
months. In the United States, sugarcane is grown in Florida, Hawaii, Louisiana and
Texas.
COLLECTING THE HARVEST

Mature canes are gathered by a combination of manual and mechanical methods.
Canes are cut at ground level, its leaves are removed and the top is trimmed off by
cutting off the last mature joint. Cane is then placed into large piles and picked up,
tied, and transported to a sugar factory.
CLEANSING AND GRINDING

Stalks are thoroughly washed and cut when reaching the sugar mill. After the
cleaning process, a machine led by a series of rotating knives, shreds the cane into
pieces. This is known as "grinding." During grinding, hot water is sprayed on to
the sugarcane to dissolve any remaining hard sugar. The smaller pieces of cane are
then spread out on a conveyer belt.
JUICING
The shredded pieces of sugarcane travel on the conveyer belt through a series of
heavy-duty rollers, which extract juice from the pulp. The pulp that remains or
"bagasse" is dried and used as fuel. The raw juice moves on through the mill to be
clarified.
CLARIFYING
Carbon dioxide and the milk of a lime are added to the liquid sugar mixture and it
is heated to the boiling point, as the process of clarifying begins. As the carbon
dioxide travels through the liquid it forms calcium carbonate, which attracts non-
sugar debris (fats, gums, and wax) from the juice, and pulls them away from the
sugar juice. The juice is then pushed through a series of filters to remove any
remaining impurities.
EVAPORATION
The clear juice which results from the clarifying process is put under a vacuum,
where the juice boils at a low temperature and begins to evaporate. It is heated
until it forms into a thick, brown syrup.

CRYSTALLIZATION
By evaporating what little water is left in the sugar syrup, crystallization takes place. Inside a
sterilized vacuum pan, pulverized sugar is fed into the pan as the liquid evaporates, causing the
formation of crystals. The remaining mixture is a thick mass of large crystals, which is sent to a
centrifuge to spin and dry the crystals. The dried product is raw sugar, still inedible.
REFINERY
Raw sugar is transported to a Cane Sugar Refinery for the removal molasses,
minerals and other non-sugars, which still contaminate the sugar. This is known as
the purification process. Raw sugar is mixed with a solution of sugar and water to
loosen the molasses from the outside of the raw sugar crystals, producing a thick
matter known as "magma." Large machines then spin the magma, which separate
the molasses from the crystals. Crystals are promptly washed, dissolved and
filtered to remove impurities. The golden syrup which is produced is then sent
through filters to remove the color and water. What's left is a concentrated, clear
syrup, which is again fed into a vacuum pan.
SEPARATION AND PACKAGING

Once the final evaporation and drying process is done, screens separate the
different sized sugar crystals. Large and small crystals are packaged and shipped,
labeled as white, refined, sugar.
SUGAR FACTS
REFINED white sugar is 99.9-percent sucrose.
WHITE sugar is pure sucrose, containing no preservatives or additives.

Process in diagram
List of Machinery
• Mill House E.O.T. Crane & Gantry

• Cane Unloaders, Table Feeders
• Cane Cutters, Cane Levellers & Kickers
• Cane Carriers, Intercarriers with Chains, Slats. Bagasse Elevators complete
• Headstocks, Crown Pinions, Scrappers, Trash Plates, Coupling
• Bagasse Baling Presses
• All Types of Chains, Slats. Rakes, Sprockets
• Power House Crane & Gantry
• Roller


Requirement of Raw Material
Sugarcane
Sugar cane is our main raw material we purchase it from Sadiqabad

and Qusoor the recent purchase price of sugar cane is 230 rupee per mann
but its price may vary in future.

Chemicals
We also use chemicals as a raw material unless we cannot find the sugar in pure
form we purchase chemicals of rupees 100 per liter
sugar processing chemicals are anti-scalant sugar processing chemicals and
carbonate based sugar processing chemicals
sugar processing chemicals that includes microbiocides, defoamer chemicals and

sugar colour treating chemicals. Also offers other chemicals like water treatment
chemicals and effluent water treatment chemicals.

Personnel analysis discusses number of employees working in mill.

It tells about total numbers of employees working either technical or non-
technical staff.
Technical analysis shows that there one General Manager, one deputy
general manager, 6 manager are working in sugar mill. There is 1 chief
chemist 1 chief engineers 6 assistants managers 10 supervisor clerical staff is
consist of 20 people, 10 peons ,5 sweeper and 2 gate keepers.

Financial statement
Mamoon Suger Mill (Prt). Limited
Income Statement
For the Year Ended Dec 31,_______________
2,01 2,01 2,01

For the Year ended 1 2 3
operating efficiency assumed Rs. Rs. Rs.
4,995,68 6,556,83 6,947,12
Sales 6 8 6
Cost of good Sold:.
1,613,20 1,714,47 1,815,87
Raw material consumed 0 5 0
10,23 11,26 12,38
Labour 8 1 7
80,86 82,91 84,97
Manufacturing expense 7 9 2
313,88 313,88 313,88
Depreciation 5 5 5
2,018,18 2,122,54 2,227,11
Cost Of Goods Manufactured 9 0 4
302,72 318,38
Add: Beginning Inventory 0 8 1
302,72 318,38 334,06
Less: Ending Inv. 15% 8 1 7
1,715,46 2,106,88 2,211,42
Cost of Goods Sold : 1 8 8
3,280,22 4,449,95 4,735,69

Gross Profit 6 1 9
Operating Expenses
5,00 5,50 6,05
General and Admin. Expenses 3 4 4
1,76 1,93 2,13
Selling Expenses 0 6 0
6,76 7,44 8,18
Total Operating Expenses 3 0 4
3,273,46 4,442,51 4,727,51
Operating Profit 2 1 5
Other Income
Sale of Wastge /Electricty 40000 44000 48400
Total Other Income 40000 44000 48400

3,313,46 4,486,51 4,775,91
Profit before Non-Oprating Expenses 2 1 5

Non-Operating Expenses
105,92 362,23 276,33
Financial Exp. 4 7 4
26 26
Amortization of preproduction exp. 5 5 265
163,67 222,12 236,37
Workers Participation fund (5%) 3 6 6
65,46 88,85 94,55
Workers Welfare Fund (2%) 9 0 0
335,33 673,47 607,52
Total Non-operating Exp. 2 8 5
2,978,13 3,813,03 4,168,39
Net Profit before Tax 1 3 0
1,191,25 1,525,21 1,667,35
Tax 2 3 6
1,786,87 2,287,82 2,501,03
Net Profit after Tax 8 0 4

Projected Balance Sheet
As On 31 Dec,_______________
As on 2010 2011 2012 2013

Rs. Rs. Rs. Rs.
Owners Equity & Liabilities
Capital & reserves:
Capital 1,746,000 1,746,000 1,746,000 1,746,000
Retained earning 0 1,786,878 4,074,698 6,575,733
Sub Total 1,746,000 3,532,878 5,820,698 8,321,733
Long Term Liabilities
The bank of Punjab loan 2,619,000 2,095,200 1,571,400 1,047,600
Sub Total 2,619,000 2,095,200 1,571,400 1,047,600
Total Debt & Equity 4,365,000 5,628,078 7,392,098 9,369,332
Current liabilities
Account Payable 20% of Material Used 26,086 322,640 342,895 363,174
Notes Payable 96,792 102,869 108,952
short term Loans @ 75% 749,353 983,526 1,042,069
Workers Participation fund (5%) 163,673 222,126 236,376
Workers Welfare Fund (2%) 0 65,469 88,850 94,550
Accrude expense 0 399,655 566,511 615,254
Current Maturity of Loan 261,900 523,800 523,800
tax payable 0 0 0 0

sub total 26,086 2,059,482 2,830,576 2,984,175

Total Equity & Liabilities 4,391,086 7,687,560 10,222,674 12,353,507
Assets
Fixed Assets
Fixed Assets 4,184,959 4,184,959 3,871,074 3,557,190
Less:Acc. Dep. - 313,885 313,885 313,885
Net Fixed Assets 4,184,959 3,871,074 3,557,190 3,243,305
Pre-Production Exp. 1,061 1,061 796 530
Less Amortized 0 265 265 265
Net Pre-Production Exp. 1,061 796 530 265
Sub total 4,186,020 3,871,870 3,557,720 3,243,571
Current Assets
Cash 78,657 1,937,998 4,422,880 6,737,474
Account Receivable 20% 22,200 999,137 1,311,368 1,389,425
Inventory 86,953 695 696 697
Packaging materials 10% 2,560 161,320 171,448 181,587
Finished Goods Inventory 15% of
Production 2,220 302,728 318,381 334,067
Stores & Spares 2,920 403,300 428,619 453,968
Marketable Securities 9,556 10,512 11,563 12,719
sub total 205,066 3,815,690 6,664,954 9,109,937
Total Assets 4,391,086 7,687,560 10,222,674 12,353,507

Projected Cash Flow Statement

For The Year Ended Dec 31,______
For the Year Ended 2010 2011 2012 2013

Rs. Rs. Rs, Rs.
Sources
3,273,46 4,442,51 4,727,51
Oprating Profit 0 2 1 5
314,15 314,15 314,15
Add:Dep. & Amort. 0 0 0 0
1,746,00
Equity 0
Other Sources
2,619,00
Long Term Loans 0
26,08 2,033,39 771,09 153,59
Inc/(dec) in Current Liabilities 6 6 4 9
4,391,08 5,621,00 5,527,75 5,195,26
Total Sources 6 9 5 4
Uses
4,184,95
Fixed Asset 9
1,06
Pre-Production Exp. 1 265 265 265
261,90 523,80 523,80
Long Term Loans 0 0 0 0
Re-Payment of:. 0
105,92 362,23 276,33
Financial Exp. 0 4 7 4
163,67 222,12 236,37
Workers Participation fund (5%) 3 6 6
Workers Welfare Fund 65,46 88,85 94,55
(2%) 9 0 0
1,191,25 1,525,21 1,667,35
Tax Paid 0 2 3 6
Profit Distribute 0 0 0 0
126,40 1,751,28 364,38 130,38
Inc/(dec) in Current asset 9 4 1 9
4,312,42 3,761,66 3,042,87 2,880,67
Total 9 8 2 0
78,65
Net Cash Inflow/(Outflow) 7 1,859,341 2,484,882 2,314,594
Balance Opening 0 78,657 1,937,998 4,422,880
78,65
Balance Closing 7 1,937,998 4,422,880 6,737,474

Cost Of Land
Mamoon Shugar Mill

Total Cost
Kanals Marlas Cost per marla Rs.
440,000,00
Land 400 8000 55,000 0
4,400,00
Cost of Registration 1.00% 0
8,800,00
Stamp Duty of Cost of Land 2% 2.00% 0
4,400,00
comitte fee 1.00% 0
17,600,00
CVT 4.00% 0
Development Charges of Cost of 8,800,00
Land 2.00% 0
484,000,00
Total 0
Cost Of Building & Civil Works

Factory Building Area Sq ft. Cost Per Sq. Ft Cost
GM Office 600 700 420,000
Account Manager 600 700 420,000
Financial Manager 600 700 420,000
Chemical manager 600 700 420,000
production manager 600 700 420,000
purchase manager 600 700 420,000
labour room 1,000 500 500,000
ware house 40,000 350 14,000,000
guest room 800 700 560,000
boundry wall (ft) 1,922,600 100 192,260,000

Shade & Structure 208,000 80 16,640,000
Total 226,480,000
electricity (internal) 9,000,000
Fee of Civil Contracture 4.50% 10,191,600
Total 19,191,600
Total Cost 2,176,000 245,671,600

Machinery Requried
Capicit
Item y Cost Total Cost
2,850,000,00
Machinery Requried 1 0 2,850,000,000
Installation Charges of Machinery 150,000,000
Total 3,000,000,000
Other Machinary Requirement
600 2,000,00
Electric Generator 1 KVA 0 2,000,000
Total 2,000,000
Total Local Machinary 3,002,000,000
Furniture and Fixture
Cost/qt
Description qty y Total
Tables 15 8,000 120,000
Revolving Chairs 10 5,000 50,000
Chairs/plastic 80 1,000 80,000
Total 250,000

Office Equipment
Item Cost/Item Total
1 45,00 675,00
Computer HP 5 0 0
1 35,00 350,00
AC Split 0 0 0
12,50 50,00
Printers 4 0 0
5,50 11,00
Scaners 2 0 0
12,00 24,00
Fax Machine 2 0 0
75,00 75,00
Photocopier 1 0 0
1,185,00
0
Cost of Vehcials
No. of Cost per

Name Of Vechial Vechial vechial Total cost
1,500,00
Toyota GLI Second Hand 1 1,500,000 0
2,450,00
Mehran 7 350,000 0
2,700,00
Buses 2 1,350,000 0
6,000,00
Shezhore Trucks 10 600,000 0
1,110,00
Bolan 3 370,000 0
13,760,00
Total 0


ESTIMATED INITIAL NETWORKING CAPITAL
CURRENT ASSETS Rs.

Cash 78,657,000
Account Receivable 20% 22,200,000
Inventory 86,952,500
Packaging materials 10% 2,560,000
Finished Goods Inventory 15% of Production 2,220,000
Stores & Spares 2,920,000
Marketable Securities 9,556,000
Total 205,065,500
CURRENT LIABILITIES
Account Payable 20% of Material Used 26,085,750
-
Total Current Liabilities Total 26,085,750
INITIAL NET WORKING CAPITAL 178,979,750

PRE-PRODUCTION EXPENSES
Project examination fee 0.50% 13,095

Legal Documentation fee 0.25% 6,547
Commitment Charges 1.50% 39,285
Travelling and Other Mix Expenses on constraction 500,688
WAPDA 500,000
Office, Fuel, Telephone, Fax, Networking System,Entertainment & other Misc. Exp. 1,375
Total Pre-Production Exp. 1,060,991
Salaries
Salary Annual
per Month Cost
a) Administrative Salaries Nos (Rs.) (000)
GM 1 80,000 80,000
DGM 1 65,000 65,000
Managers 6 45,000 270,000
Chief Chiemst 1 40,000 40,000
Chief Engieener 1 40,000 40,000
Assistant Managers 6 30,000 180,000
Supervisors 10 15,000 150,000
Clarical Staff 20 14,000 280,000
peons 10 8,500 85,000
Sweepers 5 6,500 32,500
Gatekeeper 2 6,500 13,000

We visited our nearest sugar mill named Ashraf sugar mills on

th
11 may 2010 at 10:00 am. Where we meet with Muhammad Altaf he
is a controller Finance in sugar mill. He gave all the necessary
information’s regarding to our project. He also visited us the
machinery of sugar mill.


• Al-Humra Furniture Works, Bahawalpur.

• Saeed Computer’s, Bahawalpur.
• Noor’s High Tec Computer’s, Bahawalpur.
• Grace Computer’s, Bahawalpur.
• Khan Computer’s, Bahawalpur.
• Gayass Electronics, Bahawalpur.
• Adnan & Co. Bahawalpur.
• New National Electronics, Bahawalpur.
• Muhammad yaseen Apna Home Designer, Bahawalpur.
• Dubai Copier & Fax Machine, D.I.G Chowk, Bahawalpur.
• Google.com
• The Bank Of Punjab
• Muhammad Altaf Controller Finance Ashraf Sugar Mills
Bahawalpur.
• Heavy Mechanical Complex (HMC)


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M.

com Finance Project On Sugar Mill 4th semester

A Project Report On Mamoon Sugar Mills

Islamia University Bahawalpur Department Of Commerce

Islamia University Bahawalpur Department Of Commerce

“OH! PROPHET SAY! IF OCEANS ARE

Islamia University Bahawalpur Department Of Commerce

Islamia University Bahawalpur Department Of Commerce

Project Management is an integral part of M.com (Finance)

Islamia University Bahawalpur Department Of Commerce

We pay our humble gratitude, with humility and submission,

Islamia University Bahawalpur Department Of Commerce

Islamia University Bahawalpur Department Of Commerce

The sugar industry plays an important role in the economy of the

Islamia University Bahawalpur Department Of Commerce

Mammon sugar mills is located at Hasilpur road for this purpose we

We require heavy machinery from “Heavy Mechanical Complex’’ (HMC)

Islamia University Bahawalpur Department Of Commerce

Name of the Project: Mamoon Sugar Mill

Islamia University Bahawalpur Department Of Commerce

Our main product is sugar we produce white refined

sugar 10000 bags

Per day. We produce 8 kg sugar from 40 kg of

Islamia University Bahawalpur Department Of Commerce

Our Sugar Mills also manufactures

molasses in bulk. It is also the main

product of our sugar mill.

We sell mud to farmers

Installed Capacity of the Project:

Working days p.a. 120

Islamia University Bahawalpur Department Of Commerce

2011 2012 2013

Estimated Cost of the Project:

Islamia University Bahawalpur Department Of Commerce

Name of Civil Contractor:

Address: Apna Home Designer Hasil Pur Road Bahawalpur.

Heavy Mechanical Complex (HMC)

Telex : 5607 HMC PK, 5512 HFF PK

Islamia University Bahawalpur Department Of Commerce

Islamia University Bahawalpur Department Of Commerce

1) Current Ratio= Current Assets/Current Liabilities

2011 2012 2013

1.85 2.35 3.05

An indication of a company's ability to meet short-term debt

Islamia University Bahawalpur Department Of Commerce

ratio is equal to current assets divided by current liabilities. If the current

2) Quick ratio = Current Assets-(Ending inventory-

2011 2012 2013

0.91 time 0.79 time 0.79 times

A stringent test that indicates whether a firm has enough short-term

3) Cash ratio= cash equivalent+marketable sec/current

2011 2012 2013

0.95 times 1.57 times 2.26times

Islamia University Bahawalpur Department Of Commerce

The cash ratio measures the extent to which a corporation or other

4) Gross Profit Margin = Gross profit/ sales

2011 2012 2013

65.66% 67.87% 68.17%

The Gross income margin includes only Gross income in the