tobacco company

Moonlight Tobacco Company

PROJECT REPORT


MOONLIGHT TOBACCO COMPANY

SUBMITTED TO:

Mr. JAVAID IQBAL (Chairman)

SUBMITTED BY:

NAME ROLL NO

HUNAIN KHAN 32

SHAKEEL AHMED 57

FARZAN RAFI 53

Msc (Accounting & Finance) 3rd Semester

The Islamia University Bahawalpur Pakistan


PREFACE

It is stated that the student of Department of Commerce

presently in M.sc (Accounting & Finance) 3rd semester have

given project on “MOONLIGHT TOBACCO COMPANY”

Department of Commerce is being aware of the importance

of practical training, requires every MSc (Accounting &

Finance) student to make a project Assignment.

We also have also visited a Tobacco Company Named as

Lakson Tobacco Company, Sahiwal, Qadra Abad.

We have tried our best to collect the knowledge and

information. It has broadened out knowledge and vision

about the market.

This Report is the Explanation of all work done by project

Team.


DEDICATED

To

TO

Due to one person we are able to do such a works. He has

produce skills in our selves. We have dedicated all our work

to very

Intelligent Charming, Educated, And Lime light

For student The One and Best OUR Teacher:

Thank you Sir

Thank You Sir

Javaid Iqbal


ACKNOWLEDGEMENT

Up and above everything, we are thankful to ALMIGHTY

ALLAH, the most Beneficent and merciful, and His Holy

Prophet (Peace be upon him) Who is forever a true torch of

guidance for whole humanity. We am greatly obliged to

“ALLAH” by Whom grace we have been able to complete

this Project Report successfully.

We also offer our thanks to Honorable Mr. Javaid Iqbal for

providing us a chance to work in such a Profitable Industrial

Project.

We also offer our thanks to Respect Parents for being

supports us in all means Financially and Mentally to

complete our work.


History of Tobacco

Introduction

INTRODUCTION

Tobacco business is a centuries old business. It has a very

high growth rate and has seen many ups and downs. It has

also been controversial over the period of time and has been

subject to many types of criticisms. But apart from all these

things people do smoke and people want to keep on smoking.

I start my discussion with the history of tobacco.

EARLY TOBACCO USE

1,000 BC Ancient temple carvings depict Mayan priests in

Central America smoking tobacco through a pipe. Tobacco

leaves become widespread in medicine for use on wounds as

a means of reducing pain. Later the Aztecs incorporate


smoke inhalation into religious rituals. Two castes of

smokers emerge: the pipe smokers at the court of

Montezuma and lesser Aztecs who roll the leaves into crude

cigars.

470 - 630AD Mayan tribes begin to scatter - and tobacco

travels with them. The leaf moves southwards to South

America where it is wrapped in maize and palm leaves and

smoked - and north where it is introduced to the native

Americans in the Mississippi area. In North America pipes

are made from clay, marble or lobster claws. Some pipes,

with two stems, are used for inhaling through the nostrils.

Tobacco chewing is common, especially in South America

where the leaf is mixed with lime.

1492 Arawak people in the Bahamas, on an island

Christopher Columbus christens San Salvador, offer the

explorer-dried leaves. Not understanding their significance,

Columbus discards them. A month later Rodrigo de Jerez

and Luis Torres – returning from a trip into the interior of

Cuba - stumble on villagers inhaling the smoke from

burning dried tobacco leaves through a hollow Y-shaped

piece of cane called a tobago or tobaca. Jerez is thought to

be the first smoker outside the Americas. When Jerez

returns to his home town of Ayamonte, during the Spanish

Inquisition, the holy inquisitors accuse him of "consorting

with the devil" when they see smoke coming from his mouth.


He is imprisoned for seven years. By the time he is released,

smoking is a custom in Spain. Jerez perhaps sets a precedent

for the plant's controversial future.

1492: Arawak people in the Bahamans North America give

Christopher Columbus burning leaves, pipes are made from

clay, marble or lobster claws.

USE OF TOBACCO IN 20 TH Century

1900 The Anti Cigarette League publishes a pamphlet

claiming links between cigarette smoking and brain disease.

1902 The Imperial Tobacco Company of the United

Kingdom and The American Tobacco Company of the

United States agree to end a trade war by forming a joint

venture, the 'British-American Tobacco Company LTD'.

James B. Duke, becomes the venture's first chairman.

1908 The New York City authority bans women from

smoking in public. Two weeks later Katie Mulcahey is

arrested for violating the rule. As she is led away she

declares, "No man shall dictate to me". Cigarette smoking

was often seen as a symbol of women's emancipation.

1914Outbreak of World War I. General John J. Pershing,

commander-in-chief of the American forces in France in


1917 calls tobacco "indispensable to the daily ration". In

Europe troops use cigarettes to pass time and to try to calm

their nerves. The popularity of cigarettes in the armed forces

associates tobacco with patriotism.

1925 Despite the bans, cigarette sales continue to increase.

The American Mercury reports, "The more violently it has

been banned, the more popular it has become."

1941 Roosevelt makes tobacco a protected crop as part of

the World War II war effort. His wife Eleanor was dubbed

"the first lady to smoke in public".

1945 During World War II, smoking increases. By the

middle of the next decade, more than a quarter of American

women and more than half of American men smoked

cigarettes.

1952 Two British researchers, Richard Doll and A. Bradford

Hill report the results of a four-year study comparing 1,465

lung cancer patients to an equal number of patients with

other diseases, matched for age, sex and region. They

conclude that lung cancer patients are considerably more

likely to be smokers and much more likely to be heavy

smokers.

1960s Public health warnings emerge.

1964The American Surgeon General publishes a 387-page

report stating, "Cigarette smoking is a health hazard of

sufficient importance in the United States to warrant


appropriate remedial action." For the first time smoking is

banned in the State Department auditorium

1980s The tobacco industry sees substantial annual duty

increases which result in cigarette taxation increasing by 85

per cent or more in several countries including the UK.


SEED TO STICK JOURNEY

Seed

The tobacco plant is a member of the same botanical family

as tomatoes, potatoes, peppers or eggplants. An adaptive

species, it can be grown economically from 50° Northern to

40° Southern latitude. More than 100 countries grow

tobacco. China is the largest producer, followed by the

United States, Brazil, India, Zimbabwe and Turkey.Tobacco

thrives in poorer soils, providing farmers with a welcome

alternative crop. In many cases, it provides a higher income

than any other smallholder crop. As a crop, it integrates well

into environmentally friendly rotations, and its inclusion

benefits subsequent crops like maize. A typical farmer in

rural Uganda, for example, with two to three hectares of

land can earn a good income from only a small part of that

land being planted with tobacco. British American Tobacco

can help the farmer by providing seeds and fertilizer and by

giving advice on planting, growing, harvesting and curing

tobacco and other crops.


There are some 13,000 seeds in a gram -looking rather like

powdery instant coffee. The seeds are so small that they

must be nurtured in specially prepared and protected

seedbeds for 60 days before transplanting to the field. After

a couple of weeks, soil is banked up around the seedlings to

protect them and to allow them to develop a good root

system. Two months later, the plants' flowers and some of

the upper leaves are 'topped' in order to concentrate growth

in the remaining leaves (in the same way that tomatoes are

'pinched out'). All the time, the farmer needs to provide the

appropriate nutrition for the plant and watch out for pests

as the crop grows towards the harvesting stage.


Harvest

With the exception of some countries such as the United

States (where the crop is mechanically harvested), the

farmer will typically harvest by hand, sequentially taking off

2-4 leaves per plant as the leaves ripen from bottom to top,

which stretches the harvesting period from over 2 to 4

months. The typical Ugandan farmer will harvest about

15,000 plants, each with 22 leaves.

Tobacco Types

Virginia is named after the US state where it was first

cultivated. It is also called "bright tobacco" because of its

yellow to orange color, achieved during the flue-cure. This

type grows particularly well in subtropical regions with light

rainfall, such as Georgia (USA), Southern Brazil and

Zimbabwe. Classic English brands like Benson & Hedges or

Dunhill use exclusively Virginia tobacco.

Burley is slightly lighter green than Virginia is. After being

air-cured, the tobacco turns brown with virtually no sugar,

giving it an almost cigar-like taste. It requires heavier soils


and more fertilizer than Virginia does. The best Burley is

grown in the USA, Central America, Malawi and Uganda.

Together with Virginia and Oriental tobacco, it makes up an

American Blend, as used in brands like Lucky Strike or Pall

Mall.

Oriental is the smallest and hardiest of all tobacco types,

grown into the hot summer of the Balkans, Turkey and the

Middle East. These conditions and a high planting density

create an aromatic flavor, enhanced by sun curing, as in a

traditional Turkish cigarette.

Curing

Curing is a carefully controlled process to achieve the

texture, color and overall quality of a specific tobacco type.

During the cure, leaf starch is converted into sugar, the

green color vanishes and the tobacco goes through color

changes from lemon to yellow to orange to brown like tree

leaves in autumn.


There are four main curing methods.

1-Air-Curing

Air cured tobacco, for example Burley, is hung in unheated,

ventilated barns to dry naturally until the leaf reaches a

light to medium brown color. At this point, there are

virtually no sugars left in the leaf.

2-Flue-Curing

Heat is introduced into a barn via pipes from an exterior

furnace like radiators connected to the central heating

system. This controlled heat allows the leaves to turn

yellow/orange at which point they are fixed. These leaves

now contain a high amount of sugar. Virginia tobacco is

flue-cured.

3-Sun-Curing

Leaves are strung out on racks and exposed to the sun. The

whole process takes from 12 to 30 days. The sun's direct heat


fix the leaves at a yellow to orange color with a high sugar

content. Oriental is the most prominent among the sun-

cured tobaccos.

4-Fire-Curing

Fire curing follows the same principle as producing smoked

ham. Brushwood is burnt under the tobacco leaves, which

dries the tobacco and produces a Smokey fragrance. This

type is principally used in some pipe tobaccos such as

Dunhill Morning Mixture, or roll-your-own brands like

Samson or Javanese Jongens.

After curing, the farmer grades the leaves into different leaf

positions, qualities and colors and packs his grades into what

is known as a farmer bale of 30-50kg. He then takes his bales

to a buying center or auction for sale.

Processing

The cured leaf is then processed through a Green Leaf

Threshing Plant. The main purpose of the processing is to

remove sand, dust, scraps and foreign matter. Separate the

lamina from the stem (threshing). Drive down the tobacco to

a safe 'keeping moisture' content. Processed tobacco is


packed into 200kg cardboard boxes, for shipping to

manufacturing sites.

Manufacturing

At the factory, the matured tobacco is checked for quality

and then carefully blended with other ingredients which the

brand recipe may call for, such as flavorings or pre-

processed tobacco. Keeping track of the various types of

tobacco and blend components is key and computers are

increasingly used to track production runs. Moisture content

is crucial. Too dry and the tobacco leaf will crumble; too

moist and it may spoil during storage. The blended tobacco

is treated with just the right amount of steam and water to

make it supple, and then cut into the form in which it

appears in the cigarette. Excess moisture is then removed so

that the cut tobacco can be given a final blending and

quality check.

Cigarette making, once done entirely by hand, is today

almost fully automated with the cut tobacco, cigarette paper

and filters continuously fed into the cigarette-making

machines. The technology has advanced dramatically over

the years, but quality is not forgotten; each cigarette is

automatically quality controlled to ensure that it meets every

aspect of its specification. As packing machines put them


into the familiar brand packs, wrap the packs in protective

film, and group them into cartons and cases, further testing

takes place at each stage to make sure the cigarettes are

properly protected. The completed cases, time-dated to

ensure the freshest product possible, are then ready for

distribution


EXCECUTIVE SUMMARY

Title: “Moonlight Tobacco Company”

Project Assignment:

Each student of MSc. (Accounting & Finance) 3rd semester

required to prepare a sold Project Assignment. The Project

assignment is given to Increase our knowledge about

“Project Management”.

Objectives:

SWOT analysis of Tobacco Company.

Identify and list down the all aspects and important points of

Tobacco Company .

What is a Production Process.

What is Cost of unit, Means of finance, Estimated income

statement, Estimated Balance sheet, etc.


Approach to Project:

The Team of project will, analyze, summarize, and interpret

the data which is collected different primary and secondary

sources.

Data Collection:

Both primary and secondary means of data will be used to

collect the Data. Like Books, internet, personal visits,

teacher guidance and other information etc.

Primary Sources:

The Team of Project personally visited the the TOBACCO


COMPANY for practical view: Unit selected is;

‘LAKSON TOBACCO COMPANY SAHIWAL’

Questionnaire:

Project Team has prepared a Questionnaire that contains 90

Questions and exist on 16 pages for Management of

‘LAKSON TOBACCO COMPANY SAHIWAL’

.


Data Preparation & Analysis:

After collection of all the data through both primary &

secondary means, team will used MS. Word, MS. Excel, MS.

Power point etc.

Time Frame:

Time period is allowed is one month 12/12/2009 to

18/01/2010.

Limitation:

Team has visited the various people but the information

given by them is just based of approximation.

Name of Project

‘MOONLIGHT TOBACCO COMPANY’


Location of Project

Head office: “ JAMPUR”

Tel: 0688-883302

Fax: +92-62-89846, 25643

Contact Person: Hunain Khan

( CEO)

E-mail: shakeelsmile@ yahoo.com

Shakeel Ahmed

Branch: Near Baghdad Road Jampur


City

“Jampur- Pakistan”

Product

king size filter

Reguler size filter

Chocalate flavour

Menthol flavour

Installed Capacity

The capacity of project palnt produce 3240 cartons in a

month and in a year it produces 39010 cartons at 100%

Efficiency.


Cost of Project

Fixed Cost 43445786

Initial Working Capital +35867550

Total cost of project 79313336

Means of Finance

Debt 48%

Equity 52%

Names of Lender

Bank Al-Falah Ltd. Circular road Bahawalpur.


Names Of Sponsers

Adnan Ch.

Farhan Kheizer

Amir Fraz

Arslaan Rabbani

Names Of Civil Contractor

Irfan & Co. Green Market ,Karachi.

Names Of Machinary Supplier

Usman Engineering Limited Co.


Financial Ratios

Year I II III IVEfficiency 65% 70% 75% 80%1- General Profitibility: 1- Gross Profit Ratio 14.8% 16.0% 16.6% 17.1%2- Operating Profit Ratio 12.3% 13.7% 14.3% 14.8%3- Net Profit Ratio 0.0% 0.0% 0.0% 0.0%4- Interest Coverage Ratio 4.4 6.6 9.7 15.2


Market Analysis

Tobacco company in Pakistan of Last Five Years(tones)

2005 2006 2007 2008 2009

1979 1895 1656 2825 2675

596 636 880 950 1050

Present Demand

The Demand of tobacco in last few years is increasing

because the agriculture sector is now growing and the

demand of tobacco is also increasing.


Distribution Channels


List of Machinary

Description Quantity Cost per Item

Grainding HLP 1 1,500,00

Drying GD 1 1,150,00

Steaming 1 850,000

Molding Mark-9 1 2,130,00

Quality Control 1 1,570,00

Packing Machine 1 1,450,00

Film Machine 1 1,350,00

Electric Wringing 1 50,000

Generator (50 kVA) 1 2,500,00

Total cost of Machinery

Second hand paper


Energy machinary


Making and baking machine

Molding machine


Raw material

RAW MATERIAL REQUIREMENT King size filter

( simple & flavor)

Material Description

RequiredAnnual

Unit Produced

Requirement of

Material in unit for annual

Production

Unit cost

Annually Cost each Material

Items

243,810,000

0 0 0 0 0 0 0 0 0 0

Tobbaco 70% 170,667,000

11 1,877,337,000

Paper 2% 4,876,200 1 4,876,200

Nicotin 7% 17,066,700

1.5 25,600,050

Cafine 6% 14,628,600

2 29,257,200

Choklate 3% 7,314,300 4 29,257,200

Menthol 5% 12,190,500

3 36,571,500

Filter 4% 9,752,400 2 19,504,800Film 2% 4,876,200 4 19,504,800Total Annual Cost

28.5 2,041,908,750

Per Unit Cost

8


Regular size filter


RequiredAnnual

Unit Produced

Requirement of


Production

Unit cost


Items

243,810,000

0

0 0 0 0

Tobbaco 70% 170,667,000

9 1,536,003,000

Paper 2% 4,876,200 1 4,876,200

Nicotin 7% 17,066,700

2 34,133,400

Cafine 6% 14,628,600

1 14,628,600

Choklate 3% 7,314,300 3 21,942,900

Menthol 5% 12,190,500

3 36,571,500

Filter 4% 9,752,400 2 19,504,800Film 2% 4,876,200 2 9,752,400Total Annual Cost

23 1,677,412,800

Per Unit Cost

7


Required

Annual Unit

Produced

Requirement of


Production

Unit cost


Items

0 0 0 0 0 0Tobbaco 70% 170,667,00 9 1,536,003,0


0 00Paper 2% 4,876,200 1 4,876,200Nicotin 7% 17,066,700 2 34,133,400Cafine 6% 14,628,600 1 14,628,600Choklate 3% 7,314,300 3 21,942,900Menthol 5% 12,190,500 3 36,571,500Filter 4% 9,752,400 2 19,504,800Film 2% 4,876,200 2 9,752,400

Total Annual Cost 23 1,677,412,800

Per Unit Cost #DIV/0!

Personel analysis

Descriptioon Numbe

rSalary per month

Rs,Annual

costCEO 1 45,000 540,000General Manager 1 40,000 480,000Financial Manager

1 40,000 480,000

Export Manager 1 40,000 480,000

Sectery 1 160,000 1,920,000

Accountant 1 17,000 204,000Clerks 4 10,000 480,000Computer operator

1 10,000 120,000

Recepnicet 1 8,000 96,000Time Keeper 3 8,000 288,000Drivers 2 7,800 187,200security Guard 3 8,500 306,000Gate keeper 3 6,500 234,000Office Attendence

2 6,500 156,000

Mali 1 6,000 72,000Sweepers 2 5,000 120,000

TOTAL 6,163,200

Financial Analysis


In Financial Analysis we see the sources of finance and

calculate the ratios of our project that how much it is

profitable for us and also we make financial statements to

know that how much it is feasible for us.

Cost of Project

The total cost of project is Rs. 79313336

Means of Finance

In the sources of finance we take Loan from bank Al Falah

and the remaining is from the Sponsors.

Income Statement

MOONLIGHT TOBACCO COMPANY. JAMPUR

ESTIMATED INCOME STATEMENTS (In Rs)For the year ending Dec. 31, I II III IVEfficiency Assumed : 65% 70% 75% 80% SALES

a ) King size filter 45,322,436,677

54,286,784,423 58,181,101,813

62,075,419,204

b) Regular size filter 45,322,436,677

53,769,767,428 57,626,996,082

61,484,224,735

c) Flavours 54,766,760 65,599,105 70,304,923 75,010,741Total Sales 195,143,105 232,939,885 249,650,063 266,360,242Less: COST OF GOODS SOLD :

Raw Materials 2,417,559,008

2,733,701,339 2,928,965,721

3,124,230,102


Labour 15,599,520 16,067,506 16,549,531 17,046,017Manufacturing Expenses 10,632,790 11,047,551 11,348,398 11,649,246Excise Duty \ Sales tax 3% 5,854,293 6,988,197 7,489,502 7,990,807Royalty fee (Straight

line method)

0 0 0 0

Deprication 2,086,929 2,086,929 2,086,929 2,086,929

Cost of Goods Manufactured 176,347,974 196,487,064 209,056,759 221,642,860Add: Opening Inventory 0 0 0 0Less: Ending Inventory 0 7,314,300 3 21,942,900

COST OF G00DS SOLD 166,181,136 195,704,999 208,274,695 220,860,795

G R O S S P R O F I T 28,961,969 37,234,886 41,375,369 45,499,446Less : OPERATING EXPENSES Admin & General Expenses 5,011,189 5,558,564 5,955,604 6,352,644

Selling Expenses 745,579,550 875,930,386 938,711,461 1,001,492,536

Total Operating Expenses

750,590,739 881,488,949 944,667,065

1,007,845,180

OPERATING PROFIT 24,096,844 31,875,811 35,687,830 39,483,443Add: OTHER INCOME 0 0 0 0Less: NON OPERATING EXPENSES Financial Expenses 7200000 6,837,041 5,397,041 3,957,041Amortzn. of Prelim. Exp 334,700 334,700 334,700 334,700Workers participation fund 4% 963,874 1,275,032 1,427,513 1,579,338workers wekfore fund 4% 963,874 1,275,032 1,427,513 1,579,338Total Operating Expenses

6,225,840 6,643,993 #REF! #REF!

Profit Transferred to Profit& losss Appropriaion account 17,871,004 25,231,819 29,548,876 33,850,840

Balance Sheet

MOONLIGHT TOBACCO (PVT)LTD COMPA NY . JAMPUR


ESTIMATED BALANCE SHEETS

(In Rs)

As on Sept. 30, Construction year I II III IV

ASSETS

Fixed Assets

Fixed Assets at cost 53,318,186 53,318,186 53,318,186 53,318,186 53,318,186

Less: Accumulated Dprcn. 0 2,086,929 4,173,858 6,260,786 8,347,715

Net Fixed Assets 53,318,186 51,231,25749,144,32

847,057,400 44,970,471

Preliminary Expenses: 2,677,600 2,342,900 2,008,200 1,673,500 1,338,800

Total Fixed Assets 55,995,786 53,574,15751,152,5

2848,730,90

046,309,27

1

Current Assets

Cash 388,411,524 38,368,364 59,853,666

67,367,049

79,787,474

Marketable Securities 886,245 6,051,849 533,342 0 0

Accounts Receivables 7,805,724 9,757,155 11,113,652

10,482,503

13,318,012

Finished Goods Inventory 5,083,419 0 7,314,300 9,830,307 21,942,900

Raw Material Inventory 201,463,251 145,053,540 5,000,000 76,153,109

3,300,004

Stores & Spares 98,916 2,000,000 735,942 475,165 61,560

Advances & Depostis 1,000,000 1,500,000 3,000,000 4,500,000 4,300,000

Total Current Assets 46,449,102 75,847,930 91,185,505 96,856,979 105,152,049

TOTAL ASSETS 87,165,370 115,269,723129,312,8

22133,689,8

21151,461,3

20

LIABILITIES & EQUITY

Long-term Liabilities

Muslim Commercial Bank:

Outstanding Loan principal 45,000,000 45,000,00036,000,00

027,000,00

0 18,000,000


Total Long-term Liab.: 45,000,000 45,000,00036,000,0

0027,000,00

018,000,00

0

Current Liabilities

- Accounts Payable 72,526,770 72,526,770 82,011,040

87,868,972

93,726,903

- Accrued Expenses 72,526,770 5,854,293 6,988,197 7,489,502 7,990,807

- Workers Partcpn. Fund 0 963,874 2,238,906 3,666,419 5,245,757

-Workers Welfare Fund 0 963,874 2,238,906 3,666,419 5,245,757

Provision for Taxation 0 2,144,521 5,172,339 8,718,204 12,780,305

- Bank Borrowings 2,577,829 4,980,998 4,606,988 5,078,203 6,457,761

outstanding loan instalments 0 7,200,000 15,837,041

14,397,041

12,957,041

Interest payable

Total Current Liabilities: 10,581,552 22,959,42135,925,0

0441,902,99

250,517,85

9

Total Liabilities 37,581,552 49,959,42157,525,0

0458,102,99

261,317,85

9

EQUITY

Equity 49,583,818 49,583,818 49,583,818

49,583,818

49,583,818

Balance c/d from Profit & loss appropriation account 0 15,726,484

22,204,000

26,003,011 29,788,739

Total Equity: 49,583,818 65,310,30271,787,8

1875,586,82

979,372,55

7

Total Liab. & Equity: 87,165,370 115,269,723129,312,8

23133,689,8

21140,690,4

16

R A T I O S: 0 0 0 0 0

Current Ratio 3.30 2.54 2.31 2.08

Debt as %-age of total captlsn.

29% 23% 18% 12%


Cash Flow

MOONLIGHT TOBACCO (PVT)LTd COMPA NY . JAMPUR

E S T I M A T E D C A S H F L O W S (Rs. in 000)For the year ending Sept. 30,

Const. Yr. I II III IV

SOURCES

Operating Profit 0 24,096,844 31,875,811 35,687,830

39,483,443

Add Back: Depreciation

0 2,086,929 2,086,929 2,086,929 2,086,929

Amortization

0 334,700 334,700 334,700 334,700

Funds from Operations

0 25,391,319 33,170,287 36,982,305

40,777,918

other income 0 0 0 0 0

Equity 49,583,818

0 0 0 0

Loan from Mcb 45,000,000

0 0 0 0

- Custom Debentures 0 0 0 0 0Increase in Current Liab.

0 12,377,869 12,965,583 5,977,988 8,614,867

Increase in Bank Borrowings

2,577,829

2,403,170 534,640 471,215 1,379,558

TOTAL SOURCES 79,161,647

40,172,358 46,670,51042,522,85

750,772,344

APPLICATION OF FUNDS

Investment in Fixed Assets:

53,318,186

0 0 0 0

-Preliminary Exp 2,677,600

334,700 334,700 334,700 334,700

Financial Expenses 0 7,200,000 6,837,041 5,397,041 3,957,041Repayment of : 0 0 0 0 0Loan from Mcb 0 0 9,000,000 9,000,000 9,000,000Workers Partcpn. Fund 0 963,874 1,275,032 1,427,513 1,579,338-Workers Wel. Fund 0 963,874 1,275,032 1,427,513 1,579,338provision for tax 0 2,144,521 3,027,818 3,545,865 4,062,101profit distributed 0 0 0 0 0Increase in current Assets:

25,990,587

5,888,425 10,113,397 19,924,655

23,257,215

TOTAL 66,706,855

14,258,785 25,185,208 #REF! #REF!


SWOT Analysis

Strengths:

The labour to cultivate the tobaccao is easily available we

can reach easily to low cost labour. Moreover the location

for our project is very attractive. We can avail maximum

advantage from this market.

Weaknesses:

Our weakness is that we are not producing tobacco up to the

present demand of the consumer. Because we have

dependend on tobacco & other raw materials and electricity

problem is also our weakness.

Opportunities:


Pakistan is an agricultureal country, the production of

tobacco is very high. so, demand of tobacco is repedly

increases.also there is no enough tobacco company to fullfill

the demand so, there is great opportunity to establish

tobacco company.

Threats:

The market of the tobacco company is highly competitive;

therefore if the entrepreneur is not well responsive and

fulfilling the demand of the consumer he/she may not be

able to capitalize the opportunity properly..

Conclusion & Recommendations

We conclude that on the basis of survey of tobacco company

that the tobacco is neccessry product so its demand increse

day by day. There is no chance to decrease the demand of

tobacco. Pakista is an agricultural country and it plays a

very important role in our economy. Tobacco contributes

3.2% GDP in our economy. Availability of raw material is

very easy. So, conclusion is that the tobacco company is a

profit motive business because no chance of decrease of

demand.


Our recommendation to new investors is that they

must invest in tobacco company. So, they step

forward to come and invest or to start this business,

and also contribute in the economic as well as social

groth of Pakistan.

Special thanks

We bow our head, before ALLAH Almighty, who

blessed us with potential and stamina to complete our

fesibility report on tobacco company.

First of all would like to pay our special regards to

Respected “Sir Mr. JAVED IQBAL” who provides us

guidance at each and every step, in completion of all

this fesibility report. We are especially thankful to

those personalities who help us in collecting data

during the visit and servey and also in our practical

work.


In this regard our thanks goes to:

Mr:Arsalan Rabbani, Mr:jawad ul hassan, Mr:Hassan

Qureshi Mr: Mohsin shazad, Mr: Adnan Ch., Mr:

Farhan Khizer & Mr. Amir Faraz and all of our class

fellows

tobacco company

Documents