EXECUTIVE SUMMARY

Title: M/s Pakistan Poultry Farms

Borrowers Name:
Ch. Muhammad Akram (Managing Partner)
Ch. Abdul Majeed (CO-Partner)
Mrs. Rubina Akram (Partner)
Mrs. Abida Majeed (Partner)
Occupation: Poultry Farming/ Partnership Concern
Description of the product and/or service:
Production Units:
The Punjab Chicks has a Head Office located at Rawalpindi and a branch office in Dubai.
The Breeding Farms are situated in Punjab as well as Northern Areas of Pakistan.
However, hatcheries are located in Punjab.
Products:
There are two major products of Punjab Chicks
1. Day old Chicks
2. Hatching eggs, which are produced in their own Poultry Farms located at different
places of Pakistan and then exported to the countries in the Middle East.
These products are met with the international quality standard to ensure credibility
among the customers.
Current market position and the potential for growth:
PPF have volume & larger profit share. This means that they will consolidate & grow in the
longer run.
Another niche for PPF is closed house farming, controlling the environment & improves
livability. This means less heat stress & more birds per square meter.

 Due to economies of scale, PPF has an obvious edge over competitors & this will be further
strengthen due to increased export at low cost as Saudi Arabia has lifted ban on import from
Pakistani origin companies.

The reason the business will be successful:

Pakistan's poultry industry has flourished over the last few decades. Now it is the country's
second-largest industry, beaten only by textiles, with a turnover of some Rs 300 billion ($3
billion).
M/s Pakistan Poultry Farms is recognized nationally and internationally as a pioneer in providing
quality standard chicks and Hatching Eggs. PPF having 29 years experience of poultry business
has emerged as the front runner with established linkages in UAE & again venturing in Saudi
market also.

Financial projections:

Particulars

2006 (Audited) 2007 (Audited) 2008 (Audited)

Sales

162,486,809

188,313,537

206,656,863

2.5

2.4

3.3

12

9.4

10.1

6.9

6.8

6.5

1.3

1.2

1.4

0.1

0.1

0.1

4.5

3.0

1.9

2.5

1.0

0.5

0.7

0.6

82%

75.1%

65.2%

38%

25.2%

15.7%

Profitability Ratios

Net Income/Sales
Net Income/Net Worth
Operating Profit/Sales
liquidity Ratios

Current Ratio
Quick Ratio
Leverage Ratios

Total Liabilities/Net Worth

Long Term Liab./Net Worth
Debt Service Coverage Ratio
Total Liabilities/Total Assets
Total LT Liabilities/Total Assets

Assessment of sources of repayment:

Primary Source:
In worst case scenario, we have requisite prime security in shape of hypothecation of
stock of chicks, feed, eggs, machinery & poultry utensils of the firm wit 20% Margin
duly insured by Banks approved Insurance Company covering the risks of fire, burglary
& earthquake.
The primary source of repayment is the firms cash flows generated from the progress of
contracts and realization of its receivables. The firm has around Rs. 13,333,905 FY 2008
of net operating profit. Cash flows from this would serve as a source to service mark-up
payments.
Secondary Source:
Another source of repayment is the mortgage of property. It is located at Karmang Bala,
Mansehra. The property is owned by Ch. Muhammad Akram & Ch. Abdul Majeed. This
property has sufficient forced sale value to cover our exposure. Given the high demand of
real estate in country, we would not have any problem in liquidating this property, if such
a need arises.
Funds sought and usage:
NIACF facility PKR 50.0 M & an LC (DA) for PKR 10.0 M is recommended foreseeing
their future requirement to import raw material and other imported material of specific
grades vis--vis export of PPF products as Saudi Arabia has again open the import from
Pakistan by lifting the ban imposed previously.
This NIACF facility & LC (Inland DA) will cater to the needs of the PPF specific farm as
now the potential to increase the business is highly suitable with more & more avenues
are emerging for expansion. This will ultimately reflects in totality business output with
increased profit margins.