Analysis Of Financial Statement

Analysis of Financial Statement Business Plan for Shrimp Farming / Exporting

Submitted to Mr. Mohammed Shuja Submitted by:  Syed Asad Mehmood  Ejaz Hussain  Mohammad Furqanuddin  Adnan Shabbir  Ahsan Zaki Siddiqui

Flow of Presentation      

The Business Operations The Market Risk Management Financial Plan

The Business  



 

Marine Shrimp Farming in Pounds/Tanks Today over 50 Countries export farmed shrimp Huge demand/supply gap in USA, Japan and Western Europe 75% Shrimp produced in China & Thailand 25% Shrimp produced in Latin America

Unique Features of Product 

Major target specie is Giant Tiger Shrimp     

Good Price Growing Period is less Native to the Indian Ocean Tolerate wide range of salinities Huge demand in Japan & USA

Operations – Semi Intensive    

Hatchery Operation Nursery Operation Acclimatization Tanks Growout Pond Operations

Process Flow of Shrimp Farming

Hatchery

Nursery

Grow Out Ponds

Market

Acclimation Tanks

Facility Layout

The Market – Market Analysis 

Key Success Factors        

Pond Made as per part standards Good Quality Shrimp hatched Cost Cutting methods employed Entrepreneur stays on top of the problems Quality at sub stages checked Shrimp is saved from diseases Marketing emphasized Adherence to international Standards

The Market – SWOT Analysis 

Strengths 

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





Comparatively low cost land utilization Comparatively cheep labor utilization Fish farming background of entrepreneurs Adherence to international standards Adherence to latest marketing tools



Weakness 



Sponsor’s fund limitations Funding through costly dept

The Market – SWOT Analysis 

Opportunities 





Growing Export/Local consumer ship Opening of Local/Foreign Sea food restaurants No existence of competition



Threats 

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

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Disrupted water supply to the production facility Outbreak of shrimp disease Orders not received, once production has started Government organization start bothering too soon, before profits even starts Law and order situation

The Market – Market Research     

Shrimp dominated 60% seafood export from Pakistan Annual catch of shrimp is constant but natural production are reducing Shrimp consumption has increased Enhancement of eating out trend and wealth of locals. Shrimp remain on the top of seafood menu

The Market – Market Segmentation    

B2C – Upper class households B2B – 5 Star hotels B2B – Wholesale / Retail Store Chain B2B – Upper class foreign/local sea food outlets.

The Market – Marketing Objects   

 

Establish strong presence in the market Seafood industry conduit for foreign market entry Capitalize on guaranteed demand of domestic markets Expand local market Establish the company as the premier provider of shrimp and sea food with a significant high margin

The Market – Strategies 

Distribution 

Utilizing the distribution channels of the large corporations (Wholesale/Retail Store Chains) with whom we will secure strategic alliances will facilitate efficient product distribution. Such corporations will typically have nationwide coverage. This strategy will ensure a presence in the market that increases awareness and builds demand.

The Market – Strategies 

Promotion      

Seek out the decision-makers in large corporations using our products Direct mail corporate material to the above Undertake a campaign of personal selling, targeting decision-makers Advertise in industry journals, on the Internet, and on our website Attend/sponsor exhibitions and trade shows Continual PR: press coverage (i.e., write-ups; interviews; product reviews, etc.)

Business Risk         

Technology and Engineering – Moderate Product – Low Business Plan and vision – Low/Moderate Development Risk – Low Manufacturing Risk – Moderate Financing Risk – High Marketing Risk – Moderate Management Risk – Low Exit Risk - Moderate

Management Team - Ownership No. of Shares

Pak (Rupees)

%Shareholding

Authorized 800,000 Ordinary Share PKR 10/ each

8,000,000

Issued, Subscribed and Paid Up Issued for Cash 110,000 Ejaz Hussain

1,100,000

20%

110,000 Syed Asad Mehmood

1,100,000

20%

110,000 Adnan Shabbir

1,100,000

20%

110,000 Mohammed Furqanuddin

1,100,000

20%

110,000 Ahsan Zaki Siddiqui

1,100,000

20%

550,000 Total

5,500,000

100%

Management Team – Professional Support Banks: 1) 2)

Bank Alfalah, Nazimabad, Branch, Soneri Bank Ltd., Gole Market Branch,

Auditor:

Internal

:

Tanzeem & Co., Chartered Accountants.

Auditor

External

:

Sheer Mohammed Khan & Co., Chartered Accountants.

:

Ashtar Ali & Sons, Law Associates.

Legal Advisor:

Management Team – Board of Directors 1)

Ejaz Hussain

Chairman

2)

Syed Asad Mehmood

Director / Chairman Executive Committee

3)

Adnan Shabbir

Director / Member Audit Committee

4)

Mohammed Furqanuddin

Director / Chairman Audit Committee

5)

Ahsan Zaki Siddiqui

Director / Member Executive Committee

Management Team – Human Resources Requirement Description   Management Marketing Manager Finance Manager Operation Manager Accounts Officer Export Officer H.R. Officer Purchase Officer Workers Pond Supervisor Laboratory In charge Driver Labor Office Boy Total

No. of Positions 1 1 1 1 1 1 1

Monthly Salary/Person 35,000 35,000 35,000 20,000 20,000 20,000 20,000

3

10,000 1

2 12

5,000 4,000 1

26

10,000 4,000

Financial Plan – Cost of Goods Sold / Unit of products Assumptions Stocking Rate / Hector Fry Cost / Fry (US$) Crops per year Rs/$ Conversion Rate

250,000 0.02 2 61

Net Farming Area

6

Total Cost of Fry

3,660,000

Cost of Fry per Kg

44

Food Conversion Ratio

1.5

Cost of Feed ($)

1.4

Rs/$ Conversion Rat Shrimp Production

61 84,000

Cost of Foods

10,760,400

Total Cost of Fry

14,420,400

Total Cost of Fry per Kg

92

Financial Plan – Revenue Assumptions Stocking Rate / Hector Survival Rate Harvest Size (g)

250,000 0.70 25

Net Farming Area

6

Total Cost of Fry

3,660,000

Cost of Fry per Kg

44

Food Conversion Ratio

1.5

Cost of Feed ($)

1.4

Rs/$ Conversion Rat

61

Shrimp Production

84,000

Cost of Foods

10,760,400

Total Cost of Fry

14,420,400

Total Cost of Fry per Kg

92

Thank You