Pre-Feasibility Study Prime Ministers Small Business Loan Scheme

(Calf Fattening Farm)

Small and Medium Enterprises Development Authority Ministry of Industries & Production
Government of Pakistan
www.smeda.org.pk
HEAD OFFICE
4th Floor, Building No. 3, Aiwan e Iqbal, Egerton Road, Lahore Tel 92 42 111 111 456, Fax 92 42 36304926-7 helpdesk@smeda.org.pk REGIONAL OFFICE PUNJAB 3rd Floor, Building No. 3, Aiwan e Iqbal, Egerton Road Lahore, Tel: (042) 111-111-456 Fax: (042)6304926-7 helpdesk.punjab@smeda.org.pk REGIONAL OFFICE SINDH 5TH Floor, Bahria Complex II, M.T. Khan Road, Karachi. Tel: (021) 111-111-456 Fax: (021) 5610572 helpdesk-khi@smeda.org.pk REGIONAL OFFICE KPK Ground Floor State Life Building The Mall, Peshawar. Tel: (091) 9213046-47 Fax: (091) 286908 helpdesk-pew@smeda.org.pk REGIONAL OFFICE BALOCHISTAN Bungalow No. 15-A Chaman Housing Scheme Airport Road, Quetta. Tel: (081) 831623, 831702 Fax: (081) 831922 helpdesk-qta@smeda.org.pk

September 2013

Pre-Feasibility Study

Calf Fattening Farm

Table of Contents
1. DISCLAIMER ........................................................................................................................................... 3 2. PURPOSE OF THE DOCUMENT ......................................................................................................... 4 3. INTRODUCTION TO SMEDA ............................................................................................................... 4 4. INTRODUCTION TO SCHEME ............................................................................................................. 5 5. EXECUTIVE SUMMARY ........................................................................................................................ 5 6. BRIEF DESCRITION OF PROJECT & PRODUCT ........................................................................... 5 7. CRITICAL FACTORS ............................................................................................................................. 6 8. INSTALLED AND OPERATIONAL CAPACITIES ............................................................................. 6 9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT ........................................................................ 6 10.POTENTIAL TARGET MARKET / CITIES ......................................................................................... 6 11.PROJECT COST SUMMARY .............................................................................................................. 7 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 12. 13. 13.1 13.2 13.4 PROJECT ECONOMICS ........................................................................................................................ 7 PROJECT FINANCING ......................................................................................................................... 7 PROJECT COST .................................................................................................................................. 7 SPACE REQUIREMENT ....................................................................................................................... 8 MACHINERY AND EQUIPMENT .......................................................................................................... 8 OFFICE EQUIPMENT .......................................................................................................................... 9 RAW MATERIAL REQUIREMENTS ...................................................................................................... 9 HUMAN RESOURCE REQUIREMENT ................................................................................................... 9 REVENUE GENERATION .................................................................................................................... 9 OTHER COSTS ..................................................................................................................................10 CONTACT DETAILS OF EXPERTS AND CONSULTANTS ................................................ 10 ANNEXURE .................................................................................................................................. 11 PROFIT & LOSS STATEMENT................................................................................................. 11 BALANCE SHEET....................................................................................................................... 12 USEFUL PROJECT MANAGEMENT TIPS ............................................................................. 14

13.5 : USEFUL LINKS .............................................................................................................................. 15 14. KEY ASSUMPTIONS .................................................................................................................. 16

Pre-Feasibility Study

Calf Fattening Farm

1. DISCLAIMER This information memorandum is to introduce the subject matter and provide a general idea and information on the said matter. Although, the material included in this document is based on data/information gathered from various reliable sources; however, it is based upon certain assumptions which may differ from case to case. The information has been provided on as is where is basis without any warranties or assertions as to the correctness or soundness thereof. Although, due care and diligence has been taken to compile this document, the contained information may vary due to any change in any of the concerned factors, and the actual results may differ substantially from the presented information. SMEDA, its employees or agents do not assume any liability for any financial or other loss resulting from this memorandum in consequence of undertaking this activity. The contained information does not preclude any further professional advice. The prospective user of this memorandum is encouraged to carry out additional diligence and gather any information which is necessary for making an informed decision, including taking professional advice from a qualified consultant/technical expert before taking any decision to act upon the information. For more information on services offered by SMEDA, please contact our website: www.smeda.org.pk

Pre-Feasibility Study

Calf Fattening Farm

2. PURPOSE OF THE DOCUMENT The objective of the pre-feasibility study is primarily to facilitate potential entrepreneurs in project identification for investment. The project pre-feasibility may form the basis of an important investment decision and in order to serve this objective, the document/study covers various aspects of project concept development, start-up, and production, marketing, finance and business management. The purpose of this document is to facilitate potential investors in Calf Fattening Farm by providing them with a general understanding of the business with the intention of supporting potential investors in crucial investment decisions. The need to come up with pre-feasibility reports for undocumented or minimally documented sectors attains greater imminence as the research that precedes such reports reveal certain thumb rules; best practices developed by existing enterprises by trial and error, and certain industrial norms that become a guiding source regarding various aspects of business set-up and its successful management. Apart from carefully studying the whole document one must consider critical aspects provided later on, which form basis of any Investment Decision. 3. INTRODUCTION TO SMEDA The Small and Medium Enterprises Development Authority (SMEDA) was established in October 1998 with an objective to provide fresh impetus to the economy through development of Small and Medium Enterprises (SMEs). With a mission "to assist in employment generation and value addition to the national income, through development of the SME sector, by helping increase the number, scale and competitiveness of SMEs" , SMEDA has carried out sectoral research to identify policy, access to finance, business development services, strategic initiatives and institutional collaboration and networking initiatives. Preparation and dissemination of prefeasibility studies in key areas of investment has been a successful hallmark of SME facilitation by SMEDA. Concurrent to the prefeasibility studies, a broad spectrum of business development services is also offered to the SMEs by SMEDA. These services include identification of experts and consultants and delivery of need based capacity building programs of different types in addition to business guidance through help desk services.

Pre-Feasibility Study

Calf Fattening Farm

4. INTRODUCTION TO SCHEME Prime Ministers Small Business Loans Scheme, for young entrepreneurs, with an allocated budget of Rs. 5.0 Billion for the year 2013-14, is designed to provide subsidised financing at 8% mark-up per annum for one hundred thousand (100,000) beneficiaries, through designated financial institutions, initially through National Bank of Pakistan (NBP) and First Women Bank Ltd. (FWBL). Small business loans with tenure upto 7 years, and a debt : equity of 90 : 10 will be disbursed to SME beneficiaries across Pakistan, covering; Punjab, Sindh, Khyber Pakhtunkhwah, Balochistan, Gilgit Baltistan, Azad Jammu & Kashmir and Federally Administered Tribal Areas (FATA). 5. EXECUTIVE SUMMARY In Calf fattening business, calves are raised on balanced feed to get targeted weight gain of greater value. These calve are grown in groups and each batch stays on farm for a period of 120 days. The expected weight gain ranges between 700 - 850 grams/day. Higher yields are achievable with better farm management or better quality breeds, specifically meant for meat production. Calves are raised in rural and semi-urban areas and sold in urban markets normally in livestock markets (Mundis). A farm of 101 calves per annum is suggested in this pre-feasibility study as a viable economic size to enter this business. Total estimated investment of Rs 1.12 million is required. This project is proposed to be started on 90% debt and 10% equity basis. IRR, NPV & payback period of the project is 32 %, Rs.1.47 million and 4.04 years respectively. The proposed project is a sole-proprietorship. 6. BRIEF DESCRITION OF PROJECT & PRODUCT Calf fattening venture suggested in this study is based on raising 101 calves / year at the farm premises. The calves, preferably males, 8-9 months of age are fed on concentrated feed ration and fodder. Balanced feed is given to calves for a period of 120 days to get higher body weight gain. Live weight of these calves is around 100 kg. If these calves are fed properly on the formulated fattening feed, an additional weight up to 90 kg can be achieved. The daily weight gain varies between 700 to 850 grams depending on the quality of feed given to them. The subject business can be set-up at any appropriate location preferably with availability of fodder and water. There is year around market, however the demand increases especially before occasions like Eid-ul-Fitr and Eid-ul-Azha, well fed animals are sold at a price higher than usual weight based price. The proposed legal structure of the business entity is sole proprietorship.

Pre-Feasibility Study

Calf Fattening Farm

7. CRITICAL FACTORS Adequate weight gain through the use of balanced feed purchased from well reputed companies or formulated accordingly. Proper selection of animal based on breed, age and health condition. Recommended breeds include Brahaman, Angus or local Tharparkar, Rojhaan and Lohani. Appropriate farm management practices (feeding, housing, disease control, comfortable & ventilated barns and drinking water etc) Timely vaccination against infectious diseases such as Rinderpest, Black Quarter and Foot & Mouth Disease and timely medication for endoparasitic infestations. Regular technical assistance from the livestock professionals and experts. 8. INSTALLED AND OPERATIONAL CAPACITIES In this pre-feasibility study 101 young calves of 8 to 9 months of age are raised / year in 3 production cycles of 35 calves each, raised for 4 months on Feed Lot Fattening system. The project is operating at 45% of its capacity in its 1st year of operations. 9. GEOGRAPHICAL POTENTIAL FOR INVESTMENT Metropolitan cities like Lahore, Karachi, Multan, Faisalabad, Rawalpindi, etc are the major markets of meat. However, farm lands and a rural areas with abundant water good soil for fodder make better choice for farming provided access to mundis and veterinary services are not an issue. 10. POTENTIAL TARGET MARKET / CITIES Apart from Sialkot, Jhang, Rahim Yar Khan, Bahawalnagar, Bahawalpur, Sahiwal, Okara etc in the Punjab, livestock markets in all the cities and peri urban locations are the primary market in addition to specially arranged locations for larger cities during Eid festival in the urban markets. Normally animals are sold on Live Body Weight basis. The price of fattened calves varies according to animals health and market conditions. In this feasibility Rs. 160 per kg of live body weight is assumed as a selling price. Following are some of the target clients for a calf-fattening farmer: Local farmers Livestock traders Butchers Contractors Slaughter house owners 6

Pre-Feasibility Study

Calf Fattening Farm

11.

PROJECT COST SUMMARY

A detailed financial model has been developed to analyze the commercial viability of Calf Fattening Farming project under the Prime Ministers Small Business Loan Scheme. Various cost and revenue related assumptions along with results of the analysis are outlined in this section. 11.1 Project Economics

The pre-feasibility suggests fattening of 101 calves per year in 3 groups. Each group of 35 calves stays on farm premises for 120 days at rented purpose built farm building. The total cost of the project is Rs.1.12 million, out of which capital investment is Rs. 0.22 millions and working capital requirement is Rs. 0.90 millions. The following table shows internal rates of return and payback period. Table 1 - Project Economics Description Internal Rate of Return (IRR) Payback Period (yrs) Net Present Value (NPV) 11.2 Project Financing Details 32% 4.04 1,463,581

Following table provides details of the equity required and variables related to bank loan; Table 2: Project Financing Description Details Total Equity (10%) Rs. 111,718 Bank Loan (90%.) Rs. 1,005,458 Markup to the Borrower (%age/annum) 8% Tenure of the Loan (Years) 7 11.3 Project Cost

The proposed pre-feasibility is based on the assumption of 90% debt and 10% equity. Table 3: Capital Investment for the Project Capital Investment Machinery & equipment Furniture & fixtures Pre-operating costs Total Capital Costs Equipment spare part inventory Raw material inventory (incl. calves) 7 Amount (Rs.) 105,000 10,000 100,639 215,639 15,188 733,648

Pre-Feasibility Study

Calf Fattening Farm

Upfront building rent Cash Total Working Capital Total Investment 11.4 Space Requirement

72,700 80,000 901,536 1,117,175

The area has been calculated on the basis of very basic and simple space requirement for sheds for breeding animals, calves and open paddock, labourers room, kitchen, washrooms and store. Following table shows calculations for project space requirement. Table 4: Space Requirement Space Requirement Management building Shed for Animals Store Attendants Room Open Paddock Total Infrastructure Space (Sq.Ft) 144 3,750 240 136 7,500 11,770

It is assumed that the calves would require above mentioned space in farm. Furthermore, shed space may be increased as the number of animals increase in the herd. It is assumed that the shed would be acquired on monthly rent of Rs. 18,175 per month. 11.5 Machinery and Equipment

Following table provides list of machinery and equipment required for the proposed camel farm. Table 5: List of Machinery and Equipment Farm supplies Chopper Water pump Weighing Scale Miscellaneous farm utensils Furniture Total Machinery Cost Rate per unit 15,000 25,000 50,000 15,000 10,000 No. 1 1 1 1 1 5 Amount (Rs.) 15,000 25,000 50,000 15,000 10,000 115,000

Pre-Feasibility Study

Calf Fattening Farm

For the calf fattening farm, the basic equipments are feeding mangers, water troughs etc. additionally. 11.6 Office Equipment

There is no requirement of Vehicles required for this project. 11.7 Raw Material Requirements Table 6: Cost of Material Cost of calves Feed Stuff per calf Vaccination/ Medication for herd Total Cost 11.8 Unit Calves Per calf Per calf Rate (Rs.) 15,000 12,749 200 Qty 101 101 101 Total Rs. 1,181,250 1,003,944 15,750 2,200,944

Human Resource Requirement Table7: Human Resource Requirement

Description Farm Helper Total

No. 1 1

Monthly Salary (Rs.) 10,000 10,000

Annual salary (Rs.) 120,000 120,000

The table above provides, the details of human resource required to run project of calf fattening farm. One person can handle 35-40 calves easily during the fattening period of 120 days. 11.9 Revenue Generation Table 8: Revenue Generation Unit Sale Price First Year Rs./Unit Production

Revenue in First Year (Rs.) Fattened calves sold Animal 29,440 101 2,980,800 Total Revenue 2,980,800 ** Calves are divided in three groups, one of 33 and balance two of 34 each

Description

Pre-Feasibility Study

Calf Fattening Farm

11.10 Other Costs An essential cost to be borne by the farm is electricity expense which is assumed to be Rs. 850 per animal. The repair and maintenance cost is estimated at Rs. 450 per animal. 12. CONTACT DETAILS OF EXPERTS AND CONSULTANTS Feed Suppliers Hi-Tech Feeds (Pvt.) Ltd. 1-A, Shadman Chowk Jail Road, Lahore Phone : +92-42-37564503 Fax : +92-42-37564508 National Feeds Ltd. 171 Shadman II Lahore. Phone: +92-42 37551405-8 Fax: +92-42- 37573045 Consultants Prof. Dr. Muhammad Yunas Department of Livestock Management, Faculty of Animal Husbandry, University of Agriculture, Faisalabad, Pakistan Ph: +92-41-9200161-170 Prof. Dr. Raziq Kakar Dean, Lasbella University of Agriculture, Water and Marine Sciences, Balochistan / President, Society of Animal, Veterinary and Environmental Scientists (SAVES) Email: raziq2007@gmail.com Ph: +92-0853-610921 Dr. Tanveer University of Arid Agriculture, Rawalpindi Dr. M. Sarwar Dean, Faculty of Animal Husbandry Uni. Of Agriculture, Faisalabad Ph: +92-41-9920161-70

Doctor's Dairies & Feeds (Pvt) Ltd Plot no. 203/7 UC-3,Cattle Colony Bin Qasim Town, Karachi Tel. 021-35081923-24-27 ICI Pakistan Cattle Feed 63-Mozang Road Lahore Tel. 042-36370042 Big Feed (PVT) Ltd. 2-A, Ahmad Block, New Garden Town, Lahore Tel. 042-35835374-35835373 Alhalal Wanda Al-Halal Livestock Concern Company Super High Way Jahania Tel. 065-2002373, 0300 6881293

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Calf Fattening Farm

13. ANNEXURE 13.1 PROFIT & LOSS STATEMENT

SMEDA
Year 1 Revenue # Cost of Goods Sold Feed & Vaccination Cost Cost of Calves Direct Labor Repair & Maintenance Utilities Total Cost of Sales Gross Profit General administration & selling expenses Administration expense Travelling & Comm. expense (phone, fax, etc.) Office vehicles running expense Office expenses (stationary, etc.) Depreciation expense Amortization expense Property tax expense Miscellaneous expense Subtotal Operating Income Other income Gain / (loss) on sale of assets Earnings Before Interest & Taxes Interest expense Earnings Before Tax Tax NET PROFIT/(LOSS) AFTER TAX 2,980,800 1,019,694 1,181,250 120,000 45,563 86,063 2,452,569 528,231 Year 2 3,338,496 1,121,664 1,299,375 132,000 51,030 100,980 2,705,049 633,447 Year 3 3,724,510 1,233,830 1,429,313 145,200 56,930 118,020 2,983,293 741,216 Year 4 4,140,778 1,357,213 1,572,244 159,720 63,293 137,459 3,289,929 850,849 Year 5 4,589,363 1,492,935 1,729,468 175,692 70,150 159,605 3,627,850 961,513 Year 6 5,072,453 1,642,228 1,902,415 193,261 77,534 184,806 4,000,244 1,072,209 Year 7 5,592,380 1,806,451 2,092,656 212,587 85,481 213,451 4,410,627 1,181,753 Year 8 6,151,618 1,987,096 2,301,922 233,846 94,029 245,977 4,862,870 1,288,748 Year 9 6,752,799 2,185,805 2,532,114 257,231 103,219 282,873 5,361,242 1,391,556 Rs. in actuals Year 10 7,398,719 2,404,386 2,785,326 282,954 113,092 324,689 5,910,447 1,488,272

Statement Summaries
Income Statement

11,000 20,128 14,904 264,132 264,099 264,099 77,137 186,962 186,962

11,000 20,128 16,692 287,730 345,717 345,717 67,917 277,800 277,800

11,000 20,128 18,623 313,651 427,565 427,565 57,937 369,628 369,628

11,000 20,128 20,704 342,123 508,726 508,726 47,134 461,592 461,592

11,000 20,128 22,947 373,395 588,118 588,118 35,441 552,677 552,677

11,000 25,362 387,614 684,595 684,595 22,784 661,810 661,810

11,000 27,962 425,339 756,414 756,414 9,084 747,330 747,330

11,000 30,758 466,773 821,974 821,974 821,974 821,974

11,000 33,764 512,281 879,276 879,276 879,276 879,276

11,000 36,994 562,262 926,010 926,010 926,010 926,010

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13.2
Balance Sheet

BALANCE SHEET
SMEDA
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Rs. in actuals Year 10

Statement Summaries

Assets Current assets Cash & Bank Accounts receivable Finished goods inventory Equipment spare part inventory Raw material inventory Total Current Assets Fixed assets Land Building/Infrastructure Machinery & equipment Furniture & fixtures Office vehicles Office equipment Total Fixed Assets Intangible assets Pre-operation costs Legal, licensing, & training costs Total Intangible Assets TOTAL ASSETS Liabilities & Shareholders' Equity Current liabilities Accounts payable Total Current Liabilities Other liabilities Long term debt Total Long Term Liabilities Shareholders' equity Paid-up capital Retained earnings Total Equity TOTAL CAPITAL AND LIABILITIES

134,525 15,188 733,648 901,536

129,735 163,332 17,861 847,364 1,178,284

191,118 173,131 20,922 978,705 1,385,868

305,144 193,507 24,423 1,130,404 1,677,669

477,163 215,487 28,423 1,305,617 2,053,300

701,902 239,182 32,985 1,507,987 2,511,328

972,277 264,707 38,184 1,741,726 3,049,092

1,279,096 292,187 44,103 2,011,693 3,662,497

1,799,707 321,753 50,834 2,323,505 4,534,759

2,330,661 353,546 58,481 2,683,649 5,469,192

2,952,099 387,713 3,339,812

105,000 10,000 115,000

94,500 9,500 104,000

84,000 9,000 93,000

73,500 8,500 82,000

63,000 8,000 71,000

52,500 7,500 60,000

42,000 7,000 49,000

31,500 6,500 38,000

21,000 6,000 27,000

10,500 5,500 16,000

5,000 5,000

100,639 100,639 1,117,175

80,512 80,512 1,362,795

60,384 60,384 1,539,252

40,256 40,256 1,799,925

20,128 20,128 2,144,428

2,571,328

3,098,092

3,700,497

4,561,759

5,485,192

3,344,812

170,506 170,506

190,230 190,230

212,323 212,323

237,084 237,084

264,851 264,851

296,005 296,005

330,980 330,980

370,268 370,268

414,426 414,426

290,565 290,565

1,005,458 1,005,458

893,610 893,610

772,542 772,542

641,494 641,494

499,644 499,644

346,101 346,101

179,900 179,900

111,718 111,718 1,117,175

111,718 186,962 298,680 1,362,795

111,718 464,762 576,480 1,539,252

111,718 834,390 946,108 1,799,925

111,718 1,295,982 1,407,700 2,144,428

111,718 1,848,659 1,960,377 2,571,328

111,718 2,510,470 2,622,187 3,098,092

111,718 3,257,799 3,369,517 3,700,497

111,718 4,079,774 4,191,491 4,561,759

111,718 4,959,049 5,070,767 5,485,192

111,718 2,942,530 3,054,247 3,344,812

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13.3
SMEDA
Cash Flow Statement

CASH FLOW STATEMENT

SMEDA
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Rs. in actuals Year 10

Operating activities Net profit Add: depreciation expense amortization expense Deferred income tax Accounts receivable Finished good inventory Equipment inventory Raw material inventory Accounts payable Other liabilities Cash provided by operations Financing activities Change in long term debt Issuance of shares Purchase of (treasury) shares Cash provided by / (used for) financing act Investing activities Capital expenditure Acquisitions Cash (used for) / provided by investing acti NET CASH

(15,188) (733,648) (767,011)

186,962 11,000 20,128 (163,332) (2,673) (113,715) 170,506 107,058

277,800 11,000 20,128 (9,800) (3,061) (131,341) 19,724 182,450

369,628 11,000 20,128 (20,376) (3,501) (151,699) 22,093 245,074

461,592 11,000 20,128 (21,980) (3,999) (175,213) 24,761 313,870

552,677 11,000 20,128 (23,695) (4,563) (202,371) 27,766 378,282

661,810 11,000 (25,525) (5,199) (233,738) 31,154 436,575

747,330 11,000 (27,480) (5,919) (269,967) 34,975 486,719

821,974 11,000 (29,566) (6,731) (311,812) 39,288 520,611

879,276 11,000 (31,792) (7,647) (360,143) 44,158 530,955

926,010 11,000 (34,167) 58,481 2,683,649 (123,861) 3,563,967

1,005,458 111,718 1,117,175

(111,848) (111,848)

(121,068) (121,068)

(131,048) (131,048)

(141,850) (141,850)

(153,543) (153,543)

(166,200) (166,200)

(179,900) (179,900)

(215,639) (215,639) 134,525

(4,790)

61,382

114,026

172,019

224,739

270,375

306,819

520,611

530,955

3,563,967

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Pre-Feasibility Study Calf Fattening Farm

13.4 Technology

USEFUL PROJECT MANAGEMENT TIPS

List of Machinery & Equipment Required spare parts & consumables: Suppliers credit agreements and availability as per schedule of maintenance be ensured before start of operations Energy Requirement: Should not be overestimated or installed in excess and alternate source of energy for critical operations be arranged in advance Machinery Suppliers: Should be asked for training and after sales services under the contract with the machinery suppliers Quality Assurance Equipment & Standards: Whatever means required products quality standards need to be defined on the packaging and a system to check them instituted, this improves credibility

Marketing Product Development & Packaging: Expert's help product/service and packaging design & development may be engaged for

Ads & P.O.S. Promotion: Business promotion and dissemination through banners and launch events is highly recommended. Product broachers from good quality service providers Sales & Distribution Network: required with. Expert's advise and distribution agreements are

Price - Bulk Discounts, Cost plus Introductory Discounts: Price should never be allowed to compromise quality. Price during introductory phase may be lower and used as promotional tool. Product cost estimates should be carefully documented before price setting. Government controlled prices shall be displayed.

Human Resources List of Human Resource Adequacy & Competencies: Skilled and experienced staff should considered an investment even to the extent of offering share in business profit. be

Performance Based Remuneration: Attempt to manage human resource cost should be focused through performance measurement and performance based compensation. Training & Skill Development: Encouraging training and skill of self & employees through experts and exposure of best practices is route to success. Least cost options 14

Pre-Feasibility Study Calf Fattening Farm

for Training and Skill Development (T&SD) may be linked with compensation benefits and awards.

13.5 : USEFUL LINKS Prime Ministers Office, www.pmo.gov.pk Small and Medium Enterprise Development Authority, www.smeda.org.pk National Bank of Pakistan (NBP), www.nbp.com.pk First Women Bank Limited (FWBL), www.fwbl.com.pk Government of Pakistan, www.pakistan.gov.pk Ministry of Industries & Production, www.moip.gov.pk Ministry of Education, Training & Standards in Higher Education, http://moptt.gov.pk Government of Punjab, www.punjab.gov.pk Government of Sindh, www.sindh.gov.pk Government of Khyber Pakhtoonkhwa, www.khyberpakhtunkhwa.gov.pk Government of Balochistan, www.balochistan.gov.pk Government of Gilgit Baltistan, www.gilgitbaltistan.gov.pk Government of Azad Jamu Kashmir, www.ajk.gov.pk Trade Development Authority of Pakistan (TDAP), www.tdap.gov.pk Security Commission of Pakistan (SECP), www.secp.gov.pk Federation of Pakistan Chambers of Commerce and Industry (FPCCI) www.fpcci.com.pk State Bank of Pakistan (SBP), www.sbp.org.pk

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Pre-Feasibility Study Calf Fattening Farm

14. KEY ASSUMPTIONS Table A: Financial Assumptions Project life (years) Debt Equity ratio Interest rate on short term debt Interest rate on long term debt Debt tenure (years) Debt payments per year Table B: Production and Revenue Assumptions Annual Installed capacity (Calves) Capacity Utilization (%) Maximum Capacity % Capacity Utilization Growth per year % Annual Production (calves) in first year Number of Calves fattened per production cycle Number of production ycles per year Fattening days Selling price (Rs/ kg live body weight) Live body weight at purchase time (Kgs) Average daily weight gain (grams) Live Body Weight at selling time (Kgs) Table C: Expense Assumptions Purchase price (Rs/kg live body weight) Mortality Rate Vaccination/ Medication cost (Rs. per calf) Open Space per animal (Sq. ft) Total Mixed Ration requirement (% of live bodyweight) Price of Total Mixed Ration (Rs. Per Kg) Table D: Cash flow Assumptions Raw Material Inventory (Months) 4 150 0% 200 50 3 25 225 45 90 3 101 33-34 3 120 160 100 700 183 10 90:10 8% 8% 7 12

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