April 2015

PLUTUS PRIVATE LIMITED, JANAKPUR - 4

PROPOSAL FOR LAYERS FARM

2 PROPOSAL FOR LAYERS FARM

Table of Contents
1. Background Study of Poultry Industry in Nepal:.............................................................................3
2. Project Description:........................................................................................................................4
3. Project Details:...............................................................................................................................4
3.1. Project Site:.................................................................................................................................4
3.2. Proposed Capacity/Farm Size:.....................................................................................................4
3.3. Physical Infrastructure:...............................................................................................................4
3.4. Plant Machinery and Equipment:................................................................................................5
3.5. Breed and Feeds source:.............................................................................................................5
3.6. Availabilities of Utilities: Water, Power and Fuel:.......................................................................6
3.7. Veterinary Medicine and Vaccinations:.......................................................................................6
3.8. Sales and Marketing:...................................................................................................................6
3.9. Flock Chart:.................................................................................................................................7
3.10. Market Details:..........................................................................................................................7
4. Promoter/Core Team:....................................................................................................................8
5. Management Structure:.................................................................................................................8
6. Major Risk....................................................................................................................................10
7. Justification of succession risk:.....................................................................................................11
8. Techno Economic Parameters:.....................................................................................................13
9. Financial Projections:...................................................................................................................15
9.1. INCOME STATEMENT................................................................................................................15
9.2. CASH FLOW...............................................................................................................................15
9.3. BALANCE SHEET........................................................................................................................16
9.4. Key Financial Indicators.............................................................................................................17
9.5. Financial Schedules – Annexes..................................................................................................17
9.5.1. Schedule: Fix Infrastructure Cost............................................................................................17
9.5.2. Schedule: Administrative Cost................................................................................................18
9.5.3. Schedule: Working Capital.....................................................................................................18
9.5.4. Schedule: Salary & Wages......................................................................................................18
10. Annexes II...................................................................................................................................19
10.1. Certificate of Incorporation of Company.................................................................................19
10.2. VAT/PAN Certificate................................................................................................................19
10.3. Share Laagat Book...................................................................................................................19
10.4. Laalpurja & Other Details for Collateral..................................................................................19

PROPOSAL FOR LAYERS FARM 3

1. Background Study of Poultry Industry in Nepal:

The size of Nepal’s poultry market has grown by 30 percent in the last five years
toRs.20 billion now, and the GDP contribution of the sector stands at around 4 percent,
according to the latest data compiled by poultry entrepreneurs. The per capita poultry meat
consumption, however, is still low in Nepal, compared to other Asian countries, according to
the Global Poultry Trends (GPT, 2010). The size of poultry population has significantly
increased in the recent years and the present population of the laying hens is 7290875
(statistical data from MOAC, 2009/2010), the meat production from poultry 17551 metric
tonnes (MOAC, 2009/2010), the net egg production from laying hens 6, 34, 60,000 (MOAC,
2009/2010). According to the Nepal egg producers’ association, poultry farming contributes
around 4 percent to the GDP of the national economy.

Considering the important contribution of poultry sector in the national economy APP has
given it third important priority in livestock development programme. There is a growing
trend of poultry keeping in the highway sides and other roadside area. Currently there are 5
hatcheries in government sector and 75 hatcheries in private sector. Similarly there are 178
feed industries in private sector and 1 in government sector. There is a tremendous
potential for poultry development in future. The future strategy may include steps and
policy to marketing level. Poultry farmers have better economic opportunity. It also gives
employment opportunity to women and rural people.

Traditionally, poultry farming is considered as a lower call business. However, in the recent
years the commercial poultry farming is emerging as a viable economical enterprise. It is
estimated that over 1594,400 households are rearing poultry birds (CBS, 2010). Since last
decades, commercial poultry farming for meat and eggs is being quite popular especially
around the urban centres. The poultry population is growing by 5% each year and estimated
production of egg for local is 40 and 280 for pure bred hen. There are about 82 hatcheries
producing broiler and layers chicken to the commercial poultry farmers. The major
commercial breeds are Cobb 100, Cobb 500, Vencobb 100, Kashila, Lohmann, H & N, Hyline,
Marshall, and Rose 308.

Poultry egg and meant are important sources of high quality of proteins, minerals and
vitamins to balance the human diet. Commercial Layer strains are now available with traits
of high egg production and high feed conversion efficiency. Superior germplasm of chicken
have been developed by both public and private sectors, which met the requirement of
Nepal Poultry Industry. Depending upon the farm size, commercial layer farming can be
main source of industrial income and develop gainful employment to local resources
throughout the year. Simultaneously poultry manure has high manure value and can be used
for increasing yield of all crops.

Considering this prospective nature of business and Government initiative to promote Agri-
Industry in Nepal has motivated us to get indulged in this business.

4 PROPOSAL FOR LAYERS FARM

2. Project Description:

Project Snapshot:

Geographical Location Dhalkebar-4, Dhanusha

Site Location 500 m inside E-W highway, Rivers on two sides,
farming land and no residents in proximity,
Access with Gravel road (2 roads)
Site Details 1.5 Bigha planted with eucalyptus trees
No of sheds available 10 and 2 more sheds available for expansion
Total Chicks to be reared in 1-5 10000 with aim of reaching 25000
year
Breed to be reared Hyline
Owner Plutus Pvt Ltd, Janakpur-4
Total Staffs in year 1 5 (2 Technical +1 Management+ 2 Helper)
Target Market Dhanusha, Mahottari, Siraha, Saptari
Total Annual Egg Production 20,00,000
Capacity

3. Project Details:

3.1.Project Site:
Total 2.5 Bigha land has been taken on lease of which 1.5 bigha will be used for layers
farming. The lease period is of 5 years. Site is located at Dhalkebar ward no -4, 500m inwards
from Mahendra Highway. The Site is far from dense settlement area with rivers flowing from
two sides. There are 2 Gravel roads reaching to the farm. One side of farm has only
agriculture lands with no settlement.

The site selection has been done after consultation with senior officers of Veterinary
department of Dhanusha district. The approval from local authority has been received to
operate poultry farm in that area whereas there is no any such objections from local
residents. Our consultants have highly appreciated site location.

3.2.Proposed Capacity/Farm Size:

The first year, 9000 chicks will be brought in regular interval of 3 months for which two
brooder sheds are prepared. The lot will be brought in only when existing one is shifted to
the grower sheds. The total aim of expansion is 25000 chicks in 5 years period of time. Once
in the peak stage the company aims to produce 5000 eggs per day.

3.3.Physical Infrastructure:
a. 2 Brooder sheds with 2000 sq.ft each ( First 8 weeks)
b. 3 Grower Sheds with 3000 sq.ft each ( 8-20 weeks)

PROPOSAL FOR LAYERS FARM 5

 c. 4 Layer sheds with 4000 sq.ft each (20- 70 weeks)
d. 2 sheds with 4000 sq.ft each
e. 1 Quarantine room with 200 sq.ft
f. 1 egg collection and storage room with 200 sq.ft each
g. 1 staff quarter with amenities for 1500 sq.ft

The whole premises will be fenced with barbed wire and pillars to prevent unwanted
materials coming in to the farm and maintain health and safety standards within the
premises.

3.4.Plant Machinery and Equipment:

Following equipment’s will be purchased to modernise the layer farm.

 Brooding Equipment’s
 Growth Equipment’s
 Feeder
 Waterer, water tank with pipeline for automatic watering
 Feed grinder and Mixer
 Freezer
 Cages for Layer
 Fan, Exhaust fan, Lights, Generators etc.

(Detail requirement are given in the financial proposal)

3.5.Breed and Feeds source:

Based on the preliminary Hy-line Brown has been selected for rearing in the first stage.
These breed are selected primarily based on two parameters i.e. egg production capacity
and feed efficiency. The suppliers of these are identified and listed below:

 Sagar Poultry and Hatcheries, Bhaktapur

 Avinash Hatcheries, Narayanghat
 Shreenagar Agro Farm, Kathmandu with production in Palpa.

Simultaneously feeding is one most important and cost aspect of the Layer farming. The
brooder, growth and layer mash suppliers are already identified based on the market review
and prices. Following suppliers are selected based on first hand:

 Poshak Feeds, Bara

 Everest Feeds, Kathmandu
 Panchakanya feeds, Narayanghat

The details of breed types and price with feed price required at different level are
mentioned below in techno economic parameter table.

6 PROPOSAL FOR LAYERS FARM

3.6.Availabilities of Utilities: Water, Power and Fuel:
I. Water: 1 well within site premises. 2000 litre capacity of central tank built in centre
of site. We plan to install on tube well and 1000 litres of water tank for each sheds
with automatic water pipeline connection to source.
II. Electricity: Connection to electricity is already available at the site. 10 KVA generator
as alternative source
III. Fuel: available locally.

3.7.Veterinary Medicine and Vaccinations:

Infections in poultry sector are one of the key aspects, which shall be handled carefully. To
take the utmost care, the company has hired one retired government official as full time
consultant for the poultry and livestock division. Besides being registered in the district
livestock department, the company will ensure periodic visit from the staffs. The major
vaccination will include:

 Coccidiosis
 Mycoplasmasis
 New Castle Disease
 Brussels Disease
 Infectious Bronchitis

To prevent such infections disease Outbreak Company will train its staff regularly to
maintain the bio-security measures and maintain the vaccinations chart for regular follow
up.

3.8.Sales and Marketing:

The company has already identified eight distributors in Dhanusha and Mahottari region
who are now buying eggs from other region of Nepal. They can altogether sell 250000 eggs
per month, which is far beyond our production capacity. Hence, company will not have to
worry about the overstock as fulfilling the current demand will be challenge. In long term,
company has planned to sell and distribute the eggs under its own brand name through our
own specialised retail outlet or existing outlets in the market.

a. Distributors
b. Specialised retail outlets of Company under own Brand.
c. Hotels
d. Existing Retailers

PROPOSAL FOR LAYERS FARM 7

 3.9.Flock Chart:
Below is Five years flock chart predicted for business plan

Flock Chart
Years 1 2 3 4 5
No of batches Purchased 2 2 2 2 2
No of Brooder Cum Grower weeks 40 40 40 4 40
0
No of Layer weeks 38 92 92 9 92
2
No of Batches Culled 0 2 2 1 2

*Batch = 3000 Birds

Below is the plan to purchase one-day-old Bird

Batch/LOT Month No. Of Birds

Batch/LOT 1 Month 1 3100
Batch/LOT 2 Month 3 YEAR 1 3100
Batch/LOT 3 Month 5 3100
Batch/LOT 4 Month 18 3100
Batch/LOT 5 Month 20 YEAR 2 3100
Batch/LOT 6 Month 22 3100
Batch/LOT 7 Month 35 3100
YEAR 3
Batch/LOT 8 Month 37 3100
Batch/LOT 9 Month 39 YEAR 4 3100

3.10. Market Details:

Before conceiving the idea of commercial layer farming, our team made a preliminary survey
on current situation of Farming in Nepal. In due course, we visited commercial layer farm,
hatcheries of Kathmandu and Narayanghat. We were surprised to find that most of the eggs
in dhanusha and mahottari are supplied either from Narayanghat or Biratnagar. There are no
such farms from Hetauda to Kalyanpur, Saptari. Following are the details of farms in this
region:
Supply Side:
I. Farms with 1500-2500 chicken- 9
II. Farm with 2500- 4000 chicken -3
III. Farm with more than 4000 chicken- none
IV. Farm with 10000 chickens - 1 in Kalyanpur (Saptari) - came in operation last year.
V. Total number of wholesale distributors – 10-12
VI. 90% eggs are supplied from Narayanghat and Biratnagar.

8 PROPOSAL FOR LAYERS FARM

 Demand Side:

I. 40-50K eggs per day are consumed in Dhanusha and Mahottari only.
II. Due to inability to meet demand, white eggs from India are illegally imported which
are neither quarantined nor quality assured.
III. There is good scope of egg retailing at certain brand with hygienic packaging.
IV. Brown eggs are preferred over white eggs.

Based on our survey, we have concluded that there is great scope of commercial layer
farming in this area. As a matter of fact, even if we rear 30000 birds, we will not be able to
completely supply the required demand.

Constructing a model farm and practicing modern scientific method with bio measures, this
will be one of the examples on its own in this area. We as a company believe our initiation
will not only be economically beneficial to our company, local resident but will also
encourage other youths to take poultry entrepreneurship.

4. Promoter/Core Team:

1. Sujeet Jha: Chairman

2. Suraj Kashyap: Managing Director
3. Gyan Kala Shah: Partner

5. Management Structure:

OWNERS (To reside on site)

Principal
Consultant
Manager (1) Veterinary Consultant

Clinical Technical Management

Consultant Supervisor (2) Supervisor (1)
(JTA)

Helper (2) and Security

Guard (1)
PROPOSAL FOR LAYERS FARM 9
 In addition to this:
1. Weekly visit from Department of animal health, Dhalkebar
2. Monthly Visit of doctor from Chicks suppliers
3. Bi-weekly visit from nutrition consultant of feed suppliers

10 PROPOSAL FOR LAYERS FARM

Brief Profile:

Name Position Experience

Sujeet Jha and Top level Management Combined 20 years of experience in
Suraj Kashyap Engineering and Management in Sales,
Marketing, Finance, Supply Chain and
NGO/INGO, IT & Telecom
Dr. Brij.K.Jha Principal Consultant More than 25 years of experience in
Veterinary science, Retired Government
official from higher post. National and
International experience
Dr. Subir Singh Veterinary Consultant Professor of Animal Nutrition and
Breeding in IAAS for last 16 Years. More
than 12 years of experience as General
Manager of Avinash Hatchery
Pradip Dahal Farm Manager 10 years of management experience in
Aman Poultry farm and also a local
resident of site.
Bramhadev Jha Clinical Consultant Retired as Clinical director after 25 years
from Sarlahi Department of Animal
health
Jay Shankar Mandal Clinical Supervisor 2 years of experience working in poultry
farm in sarpallo. Completed JTA and
received training from Jankapur
headquarter.
Gauri Sudi and Helper Worked for 2 years in Layers farm in
Laxman Mandal Delhi as helper.

6. Major Risk
Types Risk Identified Mitigation Strategy
Biological Risk Pollution, Smell, 6 ft fencing of whole land, Placement of guard at
Encroachment, door, Periodic disinfectants used as
infection recommended, Regular Cleaning of the sheds to
prevent any pollution, Proper culling site for
disease control
Disease Prone to various Vaccines to be done with high standard medicines
Management disease as per schedule. Vaccination of chicks reared by
local residents as well.
Management Risk Lack of Monitoring, The owner shall reside at the farm to ensure all
Threat of theft and the duties of respective staffs are performed as
loss, Timely feeding per the standard. Daily work chart of individual to
and monitoring, be given and has to be signed once completed as
Proper storage of raw checklist. In second year CCTV camera will be
and finished materials installed.
Market Risk Lack of Demand, Information shall be taken with suppliers,
Fluctuation in price of distributors and retailers to be updated. Based on

PROPOSAL FOR LAYERS FARM 1

1
 chicks and eggs future projection try to go for options strategy to
ensure the delivery for chicks, feeds, vaccines,
medicines at the given time and agreed price
Political Risk Local and National Not to get involved in any political activities at the
local or national level. Maintain cordial relation
with locals by teaching the effective methods of
farming. In case bandh, the farm will have
enough storage of feeds and medicines in
advance. The eggs shall be stored properly within
controlled temperature.
Financial Risk Lack of cash flow, Proper financial planning and rectification in
inability to maintain advance, diversification in portfolio, enough
etc. collateral to cover loan risk

7. Justification of succession risk:

Following points will be key to ensure the success of this business:

 Efficient Management: The common recommendations from most of our consultant were
Layers farming is not so significant about types of breed, medicine or feed but it is all about
how you efficiently manage all the factors. Hence, owners of this farm will monitor each and
every activity personally. Every single detail of the activity has been planned in well advance
and will be executed accordingly.

 Scientific Farming: The farm will operate completely with scientific approach. The
consultation has been taken from day one of preparation of sheds, maintain hygiene in and
around sheds, atomise whole process rather than making labour intensive, methodology of
water sanitation, rearing and culling of birds etc. Hence, the farm is built with approach
where there will be minimal third party intervention and if there are any with standard
sanitization process.

 Specialised Human Resources: From farm manager to the security guard, people selected
are either specialist of veterinary science or have prior experience of working in poultry
field. Simultaneously we will also involve the students as intern to gain experience and excel
in their career as a part of our CSR initiative. The consultants were selected based on their
years of experience in this field, practical exposure and academic background.

 Long term strategy: Most of the farms operating in this area are opened with short term
profit motive. They ignore the risk involved in the business or overlook it. They do not have
long term risk mitigation strategy or back up investment plan. Thus based on the preliminary
survey, we have identified most of the foreseen risk and developed mitigation plan in
advance. Similarly, we have our investment plan for next five years planned to ensure there
is no cash crunch whenever required.

12 PROPOSAL FOR LAYERS FARM

 Supply Chain management: The site selection was done with keeping in mind the logistic
and value chain factors. Proximity to the roadways but at same time away from dense
population is strength of our site. We have already identified and finalised contract
agreement with suppliers of DOCs, Feeds, Machineries, accessories and contractors involved
in this project. Alternative plan for each factors are also identified and contacted. The
system will be in place in order to ensure right products are delivered on the right place on
time.

 Availability of Market: As mentioned earlier the region we have selected has great potential
for layer farming mainly because of the abundant market. Even if we exceed our planned
production capacity we will not be able to fulfil the current demand. For this process
marketing and sales channel viz wholesaler, distributors and retailers are already identified
and contacted.

 Strong Local Support:

Before finalising site, we had coordination meeting with locals residing in that place to get
their view on starting on poultry in their area. They were very positive and promised their
support of any kind in future. We also selected two people to work as security guard and
helper who had experience of working in poultry farm of Delhi. We have also planned to
address their problem of water scarcity by installing a boring by in co-ordination with local
authorities. This has helped us to gain their confidence and support.

 Clear Social Motive:

As being resident of this reason and privileged enough to get education and
domestic/international exposure, we completely understand no business can sustain long
term with social vision. We strongly believe people like us need to give back to their society
and as a part we will build a most modern farm in this area which will definitely encourage
other youths like us to start their own business then to go abroad. As per current CBS data
74000 youths from Dhanusha district has migrated abroad. Our small effort might make little
difference to that figure. We have also planned other initiatives, which will benefit
immediate locals as well as society at large.

PROPOSAL FOR LAYERS FARM 1

3
8. Techno Economic Parameters:
Following table implicates all the parameter and assumption made to formulate a financial
Plan:

Number of Birds 27000  In Five Years

Number of Batches 9  
Batch Strength 3000  Birds
Birds Purchased per Batch 3100 Considering mortality, health
status
Birds considered for brooding and Growing 3000 Assumption of mortality during
brooding
Birds considered for Laying per Batch 3000  
Birds considered for culling 3000 Depends upon the laying capacity
and period
Floor space per bird in brooder cum grower 0.7 to 0.8 Brooder - 2500 sq.ft, Grower-
house (Deep litter system)- sqft per bird 3500 Sq.ft
Floor space per bird in layer shed -sqft per bird 1 to 1.25
Total number of sheds 4 ( Brooder, Grower and 2 Layer)
Cost of Construction of Shed (Rs Per Sq.ft) 400
Cost of brooder cum grower equipment (Rs per 35  
Bird)
Cost of Cages for layers (Rs per Bird) 80  
Cost of Day old Bird 80 ( Hy-line or Hinex Brown)
Feed Requirement up toLaying i.e. 20 weeks (Kg 9 8 weeks brooding- 12 weeks
per bird) Growing
Feed Requirement during Laying i.e. 52 weeks 40  
laying (Kg per bird)
Cost of Bird mash Per Kg 36 Local Suppliers
Cost of Grower Mash per Kg 40 Local Suppliers
Cost of Layer Mash 37 Local Suppliers
Medicines, vaccination cost (Per bird) 20  One Life Cycle

Labour charges - annual Per bird 72  

Insurance of Shed and Equipments- Per thousand 10  
Insurance of Birds 5 subsidy from Local Government
Egg Production per bird 500  
Sales Price per Egg Caret (30 eggs in each Caret) 320 Current Market rate
Sales price of culled birds Per KG 160 Current Market rate
Manure Production (Chicks) - Kg per bird per 0.2  
week
Manure Prouction Layers- Kg per bird per week 0.5  
Sales Price of Manure per ton 420  
Sales Price of Gunny Bags (Rs per bag) 10  

Performance Summary ( Hy-Line) www.hyline.com

Growing Period (to 17 Weeks)  

14 PROPOSAL FOR LAYERS FARM

 Livability 98%
Feed Consumed 5.75 - 6.13 KG
Body Weight at 17 Weeks 1.47-1.57 KG
   
LAYING PERIOD (TO 110 WEEKS)  
Percent Peak 95-96%
Hen-Day Eggs to 60 Weeks 257-266
Hen-Day Eggs to 90 Weeks 419-432
Hen-Housed Eggs to 60 Weeks 253-262
Hen-Housed Eggs to 90 Weeks 408-421
Hen-Housed Eggs to 110 Weeks 491-508
Livability to 60 Weeks 97%
Livability to 90 Weeks 93%
Days to 50% Production (from Hatch) 140 Days
Egg weight at 26 Weeks 57.3-59.7 Gm./Egg
Egg weight at 32 Weeks 60.1-62.5 Gm./Egg
Egg weight at 70 Weeks 62.9-65.5 Gm./Egg
Total Egg Mass for Hen-housed (18-90 Weeks) 25.5KG
Body Weight at 32 Weeks 1.85-1.97 KG
Body Weight at 70 Weeks 1.91-2.03 KG
Freedom from Egg Inclusions Excellent
Shell Strength Excellent
Shell Color at 38 Weeks 87
Shell Color at 56 Weeks 85
Shell Color at 70 Weeks 81
Haugh Units at 38 Weeks 90
Haugh Units at 56 Weeks 84
Haugh Units at 70 Weeks 81.1
Average Daily Feed Consumption (18-90 Weeks) 105-112Gm/day per
Bird
Feed Conversion Rate , Kg Feed/Kg Eggs (20-60 Weeks) 1.87-1.99
Feed Conversion Rate , Kg Feed/Kg Eggs (20-90 Weeks) 1.95-2.07
Feed Utilization, KG/Egg/KG Feed (20-60 Weeks) 0.503-0.535
Feed Utilization, KG/Egg/KG Feed (20-90 Weeks) 0.483-0.513
Feed per Dozen Eggs (20-60 Weeks) 1.42-1.46 KG
Feed per Dozen Eggs (20-90 Weeks) 1.51-1.55 KG
Skin Color Yellow
Conditions of Droppings Dry

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9. Financial Projections:

9.1.INCOME STATEMENT

INCOME STATEMENT
(Projected)          
Y-1 Y-2 Y-3 Y-4 Y-5

Gross Income 13,005,000 26,590,000 26,290,000 26,590,000 19,810,000

Less: Cost of Operation
Recurring Cost 12,317,983 18,517,420 17,501,855 18,164,920 13,812,889
Interest Cost 197,040 162,086 125,034 85,760 44,129
Depreciation 821,000 821,000 821,000 821,000 821,000
Administration Cost 2,034,500 2,237,950 2,461,745 2,707,920 2,978,711
Profit/ (Loss) Before Tax (2,365,523) 4,851,545 5,380,365 4,810,401 2,153,271
Tax Provision - 621,505 1,345,091 1,202,600 538,318
Net Profit After Tax (2,365,523) 4,230,039 4,035,274 3,607,801 1,614,953

9.2.CASH FLOW

CASH FLOW STATEMENT

(Projected)
         
Y-1 Y-2 Y-3 Y-4 Y-5

Net Profit After Tax (2,365,523) 4,230,039 4,035,274 3,607,801 1,614,953

Add:
Depreciation 821,000 821,000 821,000 821,000 821,000
(1,544,523) 5,051,039 4,856,274 4,428,801 2,435,953
Inventory (9,568,800) - - - -
(Increase)/ Decrease in
Current Assets - - - - -
Increase/ (Decrease) in
Current Liabilities - 621,505 723,586 (142,491) (664,283)
Net Cash Generated From
Operation (11,113,323) 5,672,545 5,579,860 4,286,310 1,771,670

Investment Activities
Project Investment (4,105,000)
Net Cash Flow from
Investment Activities (4,105,000) - - - -

Financing Activities
Equity 4,884,760
Term Loan 3,284,000
Overdraft 7,655,040

16 PROPOSAL FOR LAYERS FARM

 Repayment
Overdraft
Term Loan (582,570) (617,524) (654,575) (693,850) (735,481)
Net Cash Flow From
Financing Activities 15,241,230 (617,524) (654,575) (693,850) (735,481)

Net Changes in Cash

Position 22,907 5,055,021 4,925,284 3,592,460 1,036,189
Opening Balance - 22,907 5,077,928 10,003,212 13,595,672
Net Closing Balance 22,907 5,077,928 10,003,212 13,595,672 14,631,861

9.3.BALANCE SHEET

BALANCE SHEET
(Projected)          
Y-1 Y-2 Y-3 Y-4 Y-5

Equity 4,884,760 4,884,760 4,884,760 4,884,760 4,884,760

Reserves (2,365,523) 1,864,516 5,899,790 9,507,591 11,122,544
Term Loan 2,701,430 2,083,906 1,429,331 735,481 -
Overdraft 7,655,040 7,655,040 7,655,040 7,655,040 7,655,040
Total Sources of Funds 12,875,707 16,488,223 19,868,921 22,782,872 23,662,344

Application of Funds
Fixed Assets 3,284,000 2,463,000 1,642,000 821,000 -

Current Assets 9,568,800 9,568,800 9,568,800 9,568,800 9,568,800

Cash and Bank Balance 22,907 5,077,928 10,003,212 13,595,672 14,631,861
Less: Current Liabilities - 621,505 1,345,091 1,202,600 538,318
Net Current Assets 9,591,707 14,025,223 18,226,921 21,961,872 23,662,344

Total Application of Funds 12,875,707 16,488,223 19,868,921 22,782,872 23,662,344

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 9.4.Key Financial Indicators
           
Key Financial
Indicators (Projected) Y-1 Y-2 Y-3 Y-4 Y-5
KFI  
Operation Profit Ratio -17% 19% 21% 18% 11%
FA Turnover Ratio 3.96 10.80 16.01 32.39 -
ROE -48% 87% 83% 74% 33%
IRR (Project) 31%  
IRR (Equity) 76%  
DSCR (19.08) 9.19 8.52 6.18 2.41
ISCR (0.68) 44.74 63.72 88.67 117.30
           

9.5.Financial Schedules – Annexes

9.5.1. Schedule: Fix Infrastructure Cost

S.no Particulars Unit Rate Total  

A. Land and office Set up        
  Land Filling (Biggha) 2 100,000 200,000  
  Fencing (Biggha Land) 2 250,000 500,000  
  Entrance Gate 1 15,000 15,000  
  Culvert 1 10,000 10,000  
  Subtotal A 725,000
B. Infrastructure Cost        
  Shed 10 150,000 1,500,000  
  Store Room 1 50,000 50,000  
  Furniture & Fixture 1 100,000 100,000  
  Staff Room 5 50,000 250,000  
  Subtotal B 1,900,000
C. Machines & Equipment        
  Purchase of Brooder equipment’s 9000 20 180,000  
  Purchase of Grower Equipment 9000 20 180,000  
  Cooling FAN 20 5,000 100,000  
  Heaters 10 5,000 50,000  
  Electricity Installation 1 75,000 75,000  
  Boring & Water Pump 1 75,000 75,000  
  Water Tank & Accessories 1 50,000 50,000  
  Water Drinker & Pipeline Setup 1 200,000 200,000  
  Weighing Machine 5 10,000 50,000  
  Generator (10KVA) 1 520,000 520,000  
  Sub Total C 1,480,000
Total Fixed Asset Cost I 4,105,000

18 PROPOSAL FOR LAYERS FARM

 9.5.2. Schedule: Administrative Cost

D. Administrative Cost  Unit  Rate  Total  

  Salary & Wages 1 1,773,500 1,773,500  
900
  Insurance of Bird 0 4 36,000  
900
  Electricity & Water 0 10 90,000  
900
  Diesel 0 15 135,000  
  Sub Total D 2,034,500

9.5.3. Schedule: Working Capital

E. Working Capital (1st Year)  Unit  Rate  Total  

900
  Cost of Day Old Chicks 0 80 720,000  
900
  Cost of Feed till 20 Weeks 0   1,890,000  
900
  Cost of Feed from 20 to 52 weeks 0   6,058,800  
900
  Medicine Vaccine, Lab for 52 weeks 0 100 900,000  
  Sub Total E 9,568,800

9.5.4. Schedule: Salary & Wages

Salary & Wages

      13 Month    
Annual Annual
Monthly
S/N Description Annual Staff Medical
(CTC)
Welfare Insurance
1 Manager 25,000.00 325,000.00 72,000.00 4000
2 Vetenary Officer 20,000.00 260,000.00 72,000.00 4000
3 Farm Supervisor 15,000.00 195,000.00 72,000.00 4000
Assistant Vet.
4 Officer 10,000.00 130,000.00 72,000.00 4000
5 Accountant 10,000.00 130,000.00 72,000.00 4000
6 Labour 8,000.00 104,000.00 72,000.00 4000
7 Security Guard 7,500.00 97,500.00 72,000.00 4000
           
  Total 95,500 1,241,500 504,000 28,000

PROPOSAL FOR LAYERS FARM 1

9
20 PROPOSAL FOR LAYERS FARM
10. Annexes II
10.1. Certificate of Incorporation of Company

10.2. VAT/PAN Certificate

10.3. Share Laagat Book

10.4. Laalpurja & Other Details for Collateral

PROPOSAL FOR LAYERS FARM 2

1