Pre-Feasibility Study Prime Ministers Small Business Loan Scheme

(Shrimp Farming)

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 Complex, 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 Complex, Egerton Road Lahore, Tel: (042) 111-111-456 Fax: (042) 36304926-7 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

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Table of Contents
1. DISCLAIMER .......................................................................................................................................... 2 2. PURPOSE OF THE DOCUMENT ......................................................................................................... 3 3. INTRODUCTION TO SMEDA .............................................................................................................. 4 4. INTRODUCTION TO SCHEME ........................................................................................................... 5 5. EXECUTIVE SUMMARY ...................................................................................................................... 6 6. PROJECT PROFILE ............................................................................................................................... 7 7. CRITICAL FACTOR .............................................................................................................................. 8 8. PROPOSED CAPACITY AND RATIONALE ...................................................................................... 9 9. PROPOSED LOCATION ...................................................................................................................... 10 10. 11. 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 13.3 13.4 13.5 14. TARGET MARKET ........................................................................................................................ 11 PROJECT COST SUMMARY ....................................................................................................... 12 PROJECT ECONOMICS ...............................................................................................................12 PROJECT FINANCING..................................................................................................................12 PROJECT COST ..........................................................................................................................13 SPACE REQUIREMENT................................................................................................................13 MACHINERY AND EQUIPMENT ....................................................................................................14 OFFICE EQUIPMENT ...................................................................................................................14 RAW MATERIAL REQUIREMENTS ...............................................................................................15 HUMAN RESOURCE REQUIREMENT ...........................................................................................15 REVENUE GENERATION .............................................................................................................16 OTHER COSTS............................................................................................................................16 CONTACTS - SUPPLIERS, EXPERTS/CONSULTANTS ......................................................... 18 ANNEXURE ..................................................................................................................................... 19 ANNEXURE 1 - INCOME STATEMENT ...........................................................................................19 ANNEXURE 2 STATEMENT OF CASH FLOW ...............................................................................20 ANNEXURE 3 BALANCE SHEET .................................................................................................21 USEFUL PROJECT MANAGEMENT TIPS ........................................................................................22 USEFUL LINKS.............................................................................................................................23 KEY ASSUMPTIONS ..................................................................................................................... 25

Pre-Feasibility Study

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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

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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 Shrimp Farming 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.

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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.

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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 up to 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).

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5. EXECUTIVE SUMMARY
Shrimp Farming business is proposed to be located preferably at Ketibandar Somniani, Gharo, Somyani, Dam & Gevenai. Product includes head on, tail on, live shrimp for local consumption and export. Capacity: Installed capacity 20 tones with an initial utilization of 60% Total Cost Estimates is Rs: 2,097,160 with fixed investment Rs. 1,065,000 and working capital Rs. 1,032,160 Given the cost assumptions IRR and payback are 60% and 2.5 years respectively. The most critical considerations or factors for success of the project are; 1. Technical knowhow of shrimp & aqua marine culture 2. Adherence to good farming practices.

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6. PROJECT PROFILE
Shrimp farming, the production of marine shrimp in impoundments, ponds and tanks, got rolling in the early 1970s, and, today, over fifty countries export farmed shrimp. Our neighboring countries, India, China, Bangladesh, Iran and Sri Lanka all produce huge amounts of farmed shrimp. Shrimp export has a major share of the total seafood export of Pakistan. It is almost 60% of the total fisheries export of the country. The annual catch of the captured shrimp has been constant and we have crossed the sustainable limit. Shrimp farming is the way forward to additional marine exports. Product: Product includes head on tail on live shrimp for local consumption and export. Location: Shrimp Farming business is proposed to be located preferably at Ketibandar Somniani, Gharo, Somyani, Dam & Gevenai. Technology: The project operates on semi intensive farming practices with a stocking density of 150,000 seeds / acre. Target Market: Shrimp is a sellers market. The controlling factor in shrimp export is the shrimp production and not the markets. Exporters of shrimps are confident that the exports can be enhanced if the production can be increased. Thus for the shrimp farming, we can say that, there is a guaranteed ready market. Employment Generation: The proposed project will provide direct employment to 6 people. Financial analysis shows the unit shall be profitable from the very first year of its operation.

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7. CRITICAL FACTORS
The most critical considerations or factors for success of the project are; Technical knowhow of shrimp & aqua marine Disease management on expert advice Localized shrimp seeds Maintenance of salinity levels Regular Quality checks to avoid diseases Regular monitoring for FCR Adherence to good farming practices. Regular water supply to the premises

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8. PROPOSED CAPACITY
This working assumes semi-intensive farming techniques with initial stocking density of 150,000 post larva shrimp seeds per acre. Assuming 30% mortality, the proposed shrimp farm would produce around 12,051 Kilograms per annum at initial stage, utilizing 60% of capacity of 20,000 kg.

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9. PROPOSED LOCATION
Shrimp farming can easily be developed in Sindh & Baluchistan due to accessibility of Indus delta areas and huge coast line. The weather in these areas would allow two crops (4-5 months) to be cultivated in a year. Keti Bandar, Gharo, Somyani, Dam & Gevenai have has good potential for shrimp farming operations.

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10. TARGET MARKET

Shrimp is a sellers market. The consumption has increased throughout the world in the recent times where as marine resources and natural habitats of shrimps are depleting due to various environmental factors. The local processors have lost international orders due to non-availability of the required qualities & quantities. If there is a consistent supply of the shrimp species, then all of the local processors can commit to their buyers and in result, the cultured shrimp will have a definite market for it. The controlling factor in shrimp export is the shrimp production and not the markets. Exporters of shrimps are confident that the exports can be enhanced if the production can be increased. Thus, for the shrimp farming, we can say that there is a guaranteed ready market.

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11. PROJECT COST SUMMARY

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

The projected Income Statement, Cash Flow Statement and Balance Sheet are attached as annexure. 11.1 Project Economics The following table shows the internal rates of return and payback period for shrimp farming business operating at 60% capacity.
Table 1 - Project Economics

Description Internal Rate of Return (IRR) Payback Period (yrs) Net Present Value (NPV)

Details 60% 2 .5years Rs 11,802,193

Returns on the scheme and its profitability are highly dependent on the efficiency of the production supervisor, interest of the owner manager and quality of the water. 11.2 Project Financing Following table provides details of the equity required and variables related to bank loan;
Table 2 - Project Financing

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Description Total Equity (10%) Bank Loan (90%) Markup to the Borrower (%age/annum) Tenure of the Loan (Years) 11.3 Project Cost

Details Rs 209,716 Rs 1,887,444 8% 7

Following requirements have been identified for operations of the proposed business.

Table 3: Capital Investment for the Project

Capital Investment Advance Rent (Deposit) Office / Infrastructure of Farm Furniture & fixtures Machinery & Office Equipment Pre Operating Costs Total Capital Costs Initial Working Capital Total Project Cost 11.4 Space Requirement

Amount (Rs.) 75,000 270,000 100,000 470,000 150,000 1,065,000 1,032,160 2,097,160

Salt water is delivered from sea or through a 10-inch-diameter, 75-foot-deep well dug on the premises. The salt water will be delivered by a pump/motor system using power from an outside source. An engine-driven pump backup system is provided in case of power outages. Fuel for the backup engine is stored adjacent to the pump and motor shed. The facility has 15 earthen ponds, each measuring an acre. An acclimation tank field contains six large tanks, each 6 meters in diameter, and holding up to 7,900 gallons. An Office Block contains multipurpose building contains an office, men's and women's showers, changing facilities and toilets, and a room that could be subdivided for use as storage and as a small laboratory.
Table 4: Space Requirement

Space Requirement Ponds

13

Unit 2 Acre

Construction & Renovation Amount (Rs.) 70,000

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Office Area & Store Nursery Tank & Fresh Water Tank Total Area

200 Sq.ft

90,000 110,000 270,000

Three (3) acres of land would be acquired on rental basis which will cost around Rs. 75,000/- per year. It has been assumed that it would be a developed land with basic infrastructure available. However, for the necessary construction, renovation and customization of the facility, Rs. 270,000/- will be required, which has been assumed to depreciate at 10% per annum using diminishing balance method. 11.5 Machinery and Equipment Shrimp farm would require pumps, pipes & aeration fans to maintain water quality. Machinery required is available both locally and imported. Local machinery reportedly gives good quality output and after sales service is easily available. Following table provides list of machinery and equipment required for a shrimp farm.
Table 5: List of Machinery and Equipment

Description Pumps Piping Aeration Fans Nets Lightings Total 11.6 Office Equipment

Capacity Units 2 Hp

Quantity 2 1000 m 8 Lump sum

Cost Rs/unit 50,000 175 15,000

Total Rs. 100,000 175,000 120,000 50,000 25,000 470,000

A lump sum provision of Rs. 100,000/- for procurement of office/factory equipment / furniture is assumed. This would include computer, printer, fax, table, desk, chairs etc. The breakup of Factory Office Furniture & Fixtures is as follows:
Table 6: Office Equipment Costs

Computers

Quantity 1
14

Cost 25,000

Amount 25,000

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Computer printer (s) Telephones Fax machines Furniture Total 11.7 Raw Material Requirements

1 2 1 1

10,000 2,500 10,000 50,000

10,000 5,000 10,000 50,000 100,000

Based on our assumptions for the production facility, it would be necessary to maintain raw material inventory in order to avoid any unexpected price fluctuation. For this purpose three month inventory of shrimp feed has been assumed.
Table 7: Cost of Raw Material

Ingredients Shrimp Seeds Shrimp Feed Total Raw Material Cost

Unit No Kg

Rate 1 100

Qty 430,400 24,102

Rs. 430,400 2,410,240 2,840,640

11.8 Human Resource Requirement

Table 8: Human Resource Requirement

Description Owner Manager Pond Supervisor Labor Security Guard Total Staff

No. of Employees 1 1 3 1 6

Salary per month 25,000 12,000 10,000 10,000

Salary per month 25,000 12,000 30,000 10,000 77,000

Shrimp farming business does not need specialized skilled labor but requires a knowledgeable & active supervisor. The proposed project would need a total of 6 persons in order to handle the operations. Manpower requirement for the business operations along with their respective salaries is given in the table above. Owner manager is the driving force behind the success of this venture. He takes active part in day to day business affairs and ensures adherence to quality. Salaries of all employees are estimated to increase at 10% annually.
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11.9 Revenue Generation For the projection purposes, annual price & capacity utilization growth rate of 10% each has been assumed which would cover anticipated growth in the industry as well as price. Based on our discussions with the industry experts, following revenue related assumptions have been made on annualized basis. Table 9: Revenue Sales First Year Price Production (Rs./Unit) 428 12,051 First Year Sales Revenue (Rs) 5,157,914 5,157,914

Shrimp PL 20 Total Sales Revenue 11.10 Other Costs

Unit No

Considering the nature of the industry, it has been assumed that all sales will be on cash. A provision for bad debts has been assumed equivalent to 1% of the annual sales. The cost of the utilities including electricity, fuel, telephone, and gas is estimated to be around Rs. 144,000/- per annum. It has been assumed that long-term financing for 7 years will be obtained in order to finance the project investment cost. This facility would be required at a rate of 8% per annum with 84 monthly installments over a period of seven years. The installments are assumed to be paid at the end of every month. Miscellaneous expenses of running the business are assumed to be Rs. 10,000 per month. These expenses include various items like office stationery, daily consumables, traveling allowances etc. and are assumed to increase at a nominal rate of 10% per annum. The business is assumed to be run as a sole proprietorship; therefore, tax rates applicable on the income of a non salaried individual taxpayer are used for income tax calculation of the business. The cost of capital is explained in the following table:

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Table 10: Revenue Particulars Required return on equity Cost of finance Weighted Average Cost of Capital Rate 20% 8% 9.2%

The weighted average cost of capital is based on the debt/equity ratio of 90:10.

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12. CONTACTS - SUPPLIERS, EXPERTS/CONSULTANTS

Below are the contact details of Fisheries Departments in Sindh and Balochistan. BALOCHISTAN: Zeeshan Ul Haq, Head of Fisheries, Zarghoon Road, Civil sector Baluchistan , Block # 12, room #3. SINDH: Ather Mia Ishaq (Director Research & Development) Haroon Rizvi (Director Marine) Secretariat Live Stock Fisheries Department Block 4-B, Barrick#90, Sindh Secretariat, Karachi. Tel# 021-99203291

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13. ANNEXURE
13.1 Annexure 1 - Income Statement
SHRIMP FARMING
Projected Income Statement (Rs.) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Revenue Bed Debt Expenses Net (Adjusted Sales) Cost of Sales Cost of fry Cost of Feed Salaries (Production Staff) Utilities Gross Profit Gross Profit Margin General Administrative & Selling Expenses Salaries Factory/Office Miscellaneous Expenses Rent Expense Amortization of Preliminary Expenses Depreciation Expense Maintenance Expense Pond Maintainence Selling & Promotional Expense Subtotal Operating Income Financial Charges (8% Per Annum) Earnings Before Taxes Tax Net Profit Monthly Profit After Tax

5,157,914 51,579 5,106,334 3,708,640 430,400 2,410,240 624,000 244,000 1,397,694 27%

5,957,390 59,574 5,897,816 4,103,176 497,112 2,651,264 686,400 268,400 1,794,640 30%

6,880,786 68,808 6,811,978 4,540,835 574,164 2,916,390 755,040 295,240 2,271,143 33%

7,947,307 79,473 7,867,834 5,026,497 663,160 3,208,029 830,544 324,764 2,841,337 36%

9,179,140 91,791 9,087,349 5,565,621 765,950 3,528,832 913,598 357,240 3,521,728 39%

10,601,907 106,019 10,495,888 6,164,310 884,672 3,881,716 1,004,958 392,964 4,331,578 41%

12,245,202 122,452 12,122,750 6,829,398 1,021,796 4,269,887 1,105,454 432,261 5,293,352 44%

14,143,209 141,432 14,001,777 7,568,537 1,180,174 4,696,876 1,215,999 475,487 6,433,240 46%

16,335,406 163,354 16,172,052 8,390,300 1,363,101 5,166,563 1,337,599 523,036 7,781,752 48%

18,867,394 188,674 18,678,720 9,304,300 1,574,382 5,683,220 1,471,359 575,339 9,374,420 50%

300,000 120,000 75,000 30,000 84,000 23,500 25,000 153,190 810,690 587,004 143,421 443,583 44,358 399,225 33,269

330,000 132,000 78,750 30,000 75,600 23,500 26,250 176,934 873,034 921,606 126,025 795,581 41,837 753,744 62,812

363,000 145,200 82,688 30,000 68,040 23,500 27,563 204,359 944,349 1,326,794 107,184 1,219,609 105,441 1,114,168 92,847

399,300 159,720 86,822 30,000 61,236 23,500 28,941 236,035 1,025,554 1,815,784 86,780 1,729,003 193,301 1,535,703 127,975

439,230 175,692 91,163 30,000 55,112 23,500 30,388 272,620 1,117,705 2,404,022 64,683 2,339,340 315,368 2,023,972 168,664

483,153 193,261 95,721 49,601 23,500 31,907 314,877 1,192,020 3,139,558 40,751 3,098,806 497,202 2,601,605 216,800

531,468 212,587 100,507 44,641 23,500 33,502 363,683 1,309,889 3,983,464 14,833 3,968,630 714,658 3,253,973 271,164

584,615 233,846 105,533 40,177 23,500 35,178 420,053 1,442,901 4,990,339 4,990,339 1,019,602 3,970,737 330,895

643,077 257,231 110,809 36,159 23,500 36,936 485,162 1,592,874 6,188,879 6,188,879 1,388,607 4,800,271 400,023

707,384 282,954 116,350 32,543 23,500 38,783 560,362 1,761,876 7,612,544 7,612,544 1,886,890 5,725,654 477,138

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13.2 Annexure 2 Statement of Cash Flow

SHRIMP FARMING
Projected Statement of Cash Flows (Rs.) Cash Flow From Operating Activities Net Profit Add: Depreciation Expense Amortization Expense (Increase) / decrease in Receivables (Increase) / decrease in RM (Increase) / decrease in FG Inventory Net Cash Flow From Operations Cash Flow From Financing Activities Receipt of Long Term Debt Repayment of Long Term Debt Owner's Equity Net Cash Flow From Financing Activities Cash Flow From Investing Activities Equipment Factory/Office Furniture Preliminary Operating Expenses Purchase of Raw Material Inventory Advance Rent Construction & Renovation Net Cash Flow From Investing Activities NET CASH FLOW (470,000) (100,000) (150,000) (710,160) (75,000) (270,000) (1,775,160) 322,000 0 86,629 0 533,717 0 856,960 0 1,239,286 0 0 1,887,444 (209,596) 209,716 2,097,160 (209,596) (226,993) (245,833) (266,237) (288,335) (312,266) (338,184) 0 0 0 (226,993) (245,833) (266,237) (288,335) (312,266) (338,184) 0 0 0 0 399,225 84,000 30,000 0 (217,000) 0 296,225 753,744 75,600 30,000 0 (98,634) 0 760,710 1,114,168 68,040 30,000 0 (109,415) 0 1,102,793 1,535,703 61,236 30,000 0 (121,416) 0 1,505,523 2,023,972 55,112 30,000 0 (134,781) 0 1,974,303 2,601,605 49,601 0 (149,672) 0 2,501,534 3,253,973 44,641 0 (166,272) 0 3,132,342 3,970,737 40,177 0 (184,785) 0 3,826,129 4,800,271 36,159 0 (205,441) 0 4,630,989 5,725,654 32,543 0 (228,500) 0 5,529,697 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

0 1,685,969

0 2,189,267

0 2,794,158

0 3,826,129

0 4,630,989

0 5,529,697

Cash at the Beginning of the Period Cash at the End of the Period

0 322,000

322,000 408,629

408,629 942,346

942,346 1,799,306

1,799,306 3,038,593

3,038,593 4,724,561

4,724,561 6,913,829

6,913,829 9,707,986

9,707,986 13,534,116

13,534,116 18,165,105

18,165,105 23,694,802

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13.3 Annexure 3 Balance Sheet

SHRIMP FARMING
Projected Balance Sheet (Rs.) Assets Current Assets Cash & Bank Balance Raw Material Inventory Finished Goods Inventory Accounts Receivable Advnace Rent Total Current Assets Fixed Assets Plant Machinery & Facility Factory Construction Land Furniture & Fixtures Vehicle Total Fixed Assets Intangible Assets Preliminary Expenses Total Assets Owner's Equity Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

322,000 710,160 0 0 75,000 1,107,160

408,629 927,160 0 0 75,000 1,410,789

942,346 1,025,794 0 0 75,000 2,043,140

1,799,306 1,135,209 0 0 75,000 3,009,515

3,038,593 1,256,624 0 0 75,000 4,370,217

4,724,561 1,391,405 0 0 75,000 6,190,966

6,913,829 1,541,078 0 0 75,000 8,529,906

9,707,986 1,707,350 0 0 75,000 11,490,336

13,534,116 1,892,134 0 0 75,000 15,501,250

18,165,105 2,097,575 0 0 75,000 20,337,680

23,694,802 2,326,075 0 0 75,000 26,095,877

470,000 270,000 0 100,000 0 840,000

423,000 243,000 0 90,000 0 756,000

380,700 218,700 0 81,000 0 680,400

342,630 196,830 0 72,900 0 612,360

308,367 177,147 0 65,610 0 551,124

277,530 159,432 0 59,049 0 496,012

249,777 143,489 0 53,144 0 446,410

224,800 129,140 0 47,830 0 401,769

202,320 116,226 0 43,047 0 361,592

182,088 104,604 0 38,742 0 325,433

163,879 94,143 0 34,868 0 292,890

150,000 2,097,160 209,716

120,000 2,286,789 608,941

90,000 2,813,540 1,362,685

60,000 3,681,875 2,476,853

30,000 4,951,341 4,012,556 6,686,978

8,976,317

11,892,105 11,892,105

15,862,842 15,862,842

20,663,113 20,663,113

26,388,767 26,388,767

6,036,528

8,638,133

Long Term Liability Total Equity & Liabilities

1,887,444 2,097,160

1,677,848 2,286,789

1,450,855 2,813,540

1,205,022 3,681,875

938,785 4,951,341

650,450 6,686,978

338,184 8,976,317

0 11,892,105

0 15,862,842

0 20,663,113

0 26,388,767

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13.4 Useful Project Management Tips Technology Pumps Piping Aeration Fans Nets Lightings 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 Sales & Distribution Network: agreements are required with. Expert's advise and distribution

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 Owner Manager Pond Supervisor Labor Security Guard Adequacy & Competencies: Skilled and experienced staff should be considered an investment even to the extent of offering share in business profit. Performance Based Remuneration: Attempt to manage human resource cost should be focused through performance measurement and performance based compensation.
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Training & Skill Development: Encouraging training and skill of self & employees through experts and exposure of best practices is route to success. Least cost options 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 & Medium Enterprises Development Authority (SMEDA) www.smeda.org.pk First Women Bank Limited (FWBL) www.fwbl.com.pk Pakistan Institute of Fashion Design(PIFD) www.pifd.edu.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
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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 National Bank of Pakistan (SBP) www.nbp.com.pk Pakistan Fashion Design Council (PFDC) www.pfdc.org

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Shrimp farming

14. KEY ASSUMPTIONS

Item Sales Volume Increase Sales Price Increase Increase in Cost of Sales Increase in Staff Salaries Increase in Utilities Increase in Rent Increase in Office Expenses Debt / Equity Ratio Depreciation: Premises Renovation Furniture Lease Period Lease Installments Financial Charges (Lease Rate) Bad Debts Assumption(s) 5% 10% 10 % 10 % per year 10 % per year 10 % per year 10 % per year 90 : 10 10 % per annum (Diminishing Balance) 10 % per annum (Diminishing Balance) 7 Years Monthly 8 % per annum 1% of Sales

25 September 2013