FEASIBILITY REPORT

1. PROJECT PRESENTATION
Presented to:
Sir Arsalan Hashmi

2. SHAHI
MEALS
“ EAT HEALTHY LIVE HEALTHY”

3. GROUP MEMBERS
 MUHAMMAD SHAHROZ
 FOR CONTACT
 SHAHROZSALEEM34@HOTMAIL.COM

4. ABOUT US:
Cooked at home, prepared with the fresh and healthy
ingredients, we care for your health first and deliver the
healthy and hygienic food at your doorsteps. Shahi Meal
have just started its operations in Karachi. We are located
in Shahrah-e-Faisal, Karachi.
You can order meals online or get in touch with us on phone.
We are there to fulfill your needs of high quality
homemade food in Karachi. Efficient homemade food
delivery in Karachi at offices is managed by the
professionals at the Shahi Meal.

5. BUSINESS PLAN

6. SHAHI MEAL
Vision:
“To be a leader in the market by providing healthy and hygienic food to make
our people healthy.”
Mission
 To be a company that fulfills basic need of people and reduce factors
that are cause of food poisoning and health issues.
 To be a company that endeavors to set the highest standards in food
industry.
 To be a company which optimally combines its people, technology and
market opportunities to achieve profitable growth.
 To be a company that continuously enhances its superior technological
skills to remain competitive in the market and age of increasing
challenges.

7. SWOT ANALYSIS
Strengths:
• Experienced, Qualified
& Expert Cook
• Foods Made up of
Olive Oil
• Consistency in quality
of food
• Affordable Prices
• Trained Customer
Services Staff
• Distribution Team
Weakness:
• Urgent orders
• Limited startup
funds.
Opportunity:
• Increasing demand for
healthier food.
• Customer Loyalty.
• Communicate with
customers through
social networks Threats:
• Increased
Competition
• Law and order
situations.

8. COMPANY’S INFORMATION:
Location:
 Shahrah-e-Faisal
Bankers of the company:
 Bank Al HABIB

9. COMPANY’S INTERNAL ENVIRONMENT:
 Finance Department
 Sales & Marketing Department
 Production Department
 Distribution Department

10. MARKETING STRATEGY
Objective:
Our objective is to improve Nutritional Quality of Food.
Target Market:
 Top & Middle level Managers
 Health conscious people

11. Our Menu

12. LUNCHMENU
Day Menu Price
Monday
• HYDERABADI BONELESS WHITE KARAHI
• ROTI CHAKKI
• RAITA
• SALAD
250
Tuesday
• RAJMA SPECIAL
• WHITE RICE
• RAITA
• SALAD
150
Wednesday • CHICKEN MECHURIAN
• FRIED RICE 250
Thursday
• DAAL MAKHNI
• CHAPPATI
• LAKHNAWI RAITA
• SALAD
150
Friday
• SHAHI BIRYANI
• SHAMI KABAB
• NAWABI RAITA
• NORATAN SALAD
200
Saturday
• CHICKEN KOYLA KARAHI
• CHICKEN SEEKH KABAB
• CHAPATI
• RAITA
• SALAD
300

13. BUDGET FORECASTING

14. Balance Sheet

15. YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
INTANGIBLE ASSETS
PRELIMINARY EXPENSES 80,000 60,000 40,000 20,000 -
TOTAL INTANGIBLE
ASSET 80,000 60,000 40,000 20,000 -
NON-CURRENT ASSETS
KITCHEN EQUIPMENTS 270,000 240,000 210,000 180,000 150,000
FURNITURE & FIXTURES 85,000 70,000 55,000 40,000 25,000
OFFICE EQUIPMENT 15,300 13,600 11,900 10,200 8,500
VEHICLES 85,000 70,000 55,000 40,000 25,000
AC 45,000 40,000 35,000 30,000 25,000
GENERATOR 45,000 40,000 35,000 30,000 25,000
TOTAL NON CURRENT
ASSETS 545,300 473,600 401,900 330,200 258,500
CURRENT ASSETS
CASH/BANK 1,160,040 1,931,940 3,535,730 5,955,332 9,180,768
INVENTORIES 20,000 10,000 30,000 32,000 35,000
A/C RECEIVABLES 100,000 140,000 120,000 130,000 100,000
PREPAID RENT 240,000 240,000 240,000 240,000 240,000
TOTAL CURRENT
ASSETS 1,520,040 2,321,940 3,925,730 6,357,332 9,555,768
TOTAL ASSETS 2,145,340 2,855,540 4,367,630 6,707,532 9,814,268
CURRENT LIABILITIES
A/C PAYABLE 45,000 25,000 75,000 45,000 55,000
TOTAL LIABILITIES 45,000 25,000 75,000 45,000 55,000
EQUITY
SHARE CAPITAL 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
RETAINED EARNINGS 100,340 830,540 2,292,630 4,662,532 7,759,268
TOTAL EQUITY 2,100,340 2,830,540 4,292,630 6,662,532 9,759,268
TOTAL EQUITIES 2,145,340 2,855,540 4,367,630 6,707,532 9,814,268

16. INCOME STATEMENT

17. YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
REVENUES 3,380,000 4,461,600 5,714,800 7,217,600 8,892,000
LESS: COST OF
MATERIAL COST 1,521,000 1,784,640 2,000,180 2,165,280 2,667,600
GROSS PROFIT 1,859,000 2,676,960 3,714,620 5,052,320 6,224,400
LESS: EXPENSES
SALARIES EXPENSE 780,000 858,000 943,800 1,038,180 1,141,998
RENT EXPENSE 480,000 528,000 580,800 638,880 702,768
UTILITIES EXPENSE 186,000 204,600 225,060 247,566 272,323
TRANSPORTATION
EXPENSE 110,960 116,508 122,333 128,450 134,873
ADVERTISEMENT
EXPENSE 50,000 51,000 52,000 53,000 54,000
COMMUNICATION
EXPENSE
(PHONE,INTERNET) 24,000 25,000 26,000 27,000 28,000
OFFICE EXPENSE 36,000 37,800 39,690 41,675 43,758
AMORTIZATION
EXPENSE 20,000 20,000 20,000 20,000 20,000
DEPRECIATION
EXPENSE 71,700 71,700 71,700 71,700 71,700
TOTAL EXPENSE 1,758,660 1,912,608 2,081,383 2,266,451 2,469,419
EARNINGS BEFORE TAX 100,340 764,352 1,633,237 2,785,869 3,754,981
INCOME TAX - (34,152) (171,147) (415,967) (658,245)
NET PROFIT/(LOSS)
AFTER TAX 100,340 730,200 1,462,090 2,369,902 3,096,736
RETAINED EARNING
BROUGHT FORWARD - 100,340 830,540 2,292,630 4,662,532
RETAINED EARNING
CARRIED FORWARD TO
B/S 100,340 830,540 2,292,630 4,662,532 7,759,268

19. Cashflows

20. YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Cash flows from
operating activities:
Net profit 100,340 730,200 1,462,090 2,369,902 3,096,736
Adjustments:
Add:Depreciation Exp 71700 71700 71700 71700 71700
Add:Amortization expense 20,000 20,000 20,000 20,000 20,000
Operating profit before
woking capital 192,040 821,900 1,553,790 2,461,602 3,188,436
(Increase)/Decrease in
Prepaid Rent (240,000) - - - -
(Increase)/Decrease in
inventories (20,000) 10,000 (20,000) (2,000) (3,000)
(Increase)/Decrease in
A/C Rec (100,000) (40,000) 20,000 (10,000) 30,000
Increase/(Decrease) in
A/C payable 45,000 (20,000) 50,000 (30,000) 10,000
Net cash flows from
operating activities (122,960) 771,900 1,603,790 2,419,602 3,225,436
Cash flows from
investing activities:
Capital expenditures (717,000) - - - -
Net cash flow from
investing activities (717,000) - - - -
Cash flows from
financing activities:
Issuance of shares 2,000,000 - - - -
Net Cash Flows from
Financing Activities 2,000,000 - - - -
Net Cash Flow Increase /
(Decrease) 1,160,040 771,900 1,603,790 2,419,602 3,225,436
Beginning Cash and
Bank Balance - 1,160,040 1,931,940 3,535,730 5,955,332
Ending Cash and Bank
Balance 1,160,040 1,931,940 3,535,730 5,955,332 9,180,768

21. RATIO
ANALYSIS

22. Ratios Formulas Year 1 Year 2 Year 3 Year 4 Year 5
Current ratio
current assets / current
liabilities 33.78 92.88 52.34 141.27 173.74
Quick ratio
(cash + accounts
receivables)/CL 28.00 82.88 48.74 135.23 168.74
Cash Ratio
(cash + marketable
securities)/current
liabilities 25.78 77.28 47.14 132.34 166.92
Working Capital Ratio
Current assets - Current
liabilities/ Sales 0.45 0.52 0.69 0.88 1.07
Efficiency / Turnover
Ratios
Average Receivables current +previous /2 50000 120000 130000 125000 115000
Receivable turnover
net annual sales /
average receivables 67.60 37.18 43.96 57.74 77.32
Receivable turnover
in days
365 days/receivables
turnover 5 10 8 6 5
Return on Sales
Gross Profit
Gross profit = net sales
– cost of goods sold 1859000 2676960 3714620 5052320 6224400
Gross Profit Margin gross profit / net sales 55% 60% 65% 70% 70%
Operating Profit
Margin
operating income/net
sales 3% 17% 29% 39% 42%
Per-Tax Margin (EBT
margin) Earning before tax/sales 3% 17% 29% 39% 42%
Net Margin (Profit
Margin) net income/sales 3% 16% 26% 33% 35%
Return on Investment
Ratios
AVERAGE TOTAL
EQUITY 1050170 2465440 3561585 5477581 8210900
Return on Total Equity
(ROE)
net income/average total
equity 10% 30% 41% 43% 38%
Operating Efficiency
Ratios
Average Total Assets 1072670 2500440 3611585 5537581 8260900
Total Asset Turnover
net sales / average total
assets 3.15 1.78 1.58 1.30 1.08
Equity Turnover
net sales / average total
equity 3.22 1.81 1.60 1.32 1.08
FINANCIAL RISK
RATIOS
Debt to Equity total debt / total equity 2% 1% 4% 2% 3%

23. FIXED ASSETS &
DEPRECIATION SCHEDULE FOR
FIVE YEARS

24. FIXED ASSET & DEPRICIATION SCHEDULE
Asset
Description
Cost Salvag
e
Value
Dep.
Rate
Depreciation (Straight Line) Book Value at the end of Year
Year-
1
Year-2 Year-3 Year-4 Year-5 Year-1 Year-2 Year-3 Year-
4
Year
-5
Kitchen
equipment
300,000 - 10% 30,000 30,000 30,000 30,000 30,000 270,000 240,000 210,000 180,000
150,00
0
Furniture &
fixturea
100,000 - 15% 15,000 15,000 15,000 15,000 15,000 85,000 70,000 55,000 40,000 25,000
Office
Equipments
17,000 - 10% 1,700 1,700 1,700 1,700 1,700 15,300 13,600 11,900 10,200 8,500
Vehicles
500,000 - 15% 75,000 75,000 75,000 75,000 75,000 425,000 350,000 275,000 200,000
125,00
0
Air
Conditioner
50,000 - 10% 5,000 5,000 5,000 5,000 5,000 45,000 40,000 35,000 30,000 25,000
Generator
50,000 - 10% 5,000 5,000 5,000 5,000 5,000 45,000 40,000 35,000 30,000 25,000
Total
131,700 131,700 131,700 131,700 131,700 885,300 753,600 621,900 490,200
358,50
0