1

STRATEGIC FINANCIAL
ACCCOUNTING AND DESIGN

GROUP MEMBERS
Arsal Ali (64338)
Ali Zaidi (6816)
Rimsha Habib (6943)
Laiba Memon (7200)
Rabia Jabeen (7211)
Ummul Banin (64356)

Submitted to: Sir. Faisal Dedhi

1|Page
 PROJECT 1

TOTAL
CAPITAL
30,00,000

SIZZLING INVESTMENT
BITES IN STOCK
15,00,000 15,00,000
50% 50%
 PROJECT 1

SIZZLING BITES RESTAURANT

OUR RESTAURANT DESCRIPTION:

We will operate a restaurant by the name of “SIZZLING BITES”. The restaurant will be
located at MALIR CANTT.

UNIQUE SERVICES:

When the customers will come to take the deals from the menu then the order is book by the
token remote key. The customer will take that remote key and wait for their deal. When the deal
will ready then the remote key light will blink then customer will take the service by themselves
and it is the self service.

TAGLINE

Our tagline is “Come and experience the unique service”. That attracts the customer to come and
experience our new services provided by our restaurant.
 PROJECT 1

Mission Statement

“Provide the best quality food and service to our customers. Also keeping and maintaining a good

healthy customer relationship and treating and considering customers as our first priority”.

Vision

“We proudly serve the fresh and quickly prepared fast food, “Just the way you want it”

Objectives

 To maintain a clean, comfortable and well maintained premises for our guests and staff.
 To provide order to customers instantly.
 To delight our customers with high quality food at reasonable price.
 PROJECT 1

SWOT ANALYSIS
STRENGTH:
 Our strength is our location
 Space in our restaurant (because there is no waiter)
 Delivery of order on time
 Computerized order placing reduces lead time

WEAKNESS:
 Less advertisement campaigns
 Newly entered in the business

OPPORTUNITY:
 Since we have conveyer to deliver food with the help of remote key

THREATS:
 As such we don’t have big threats but MY SECOND HOUSE WIFE and PIZZA
MAX can be because they are our competitors

PARTNERS INVESTMENTS:

Name Contribution
Rimsha Habib 416667
Laiba Memon 416667
Rabia Jabeen 416667
Arsal Ali 416667
Banin 416667
Ali Zaidi 416667
 PROJECT 1

MARKETING MIX
PRODUCT:
 Burger
 Sandwiches
 Fries/ Drinks

PRICES:
 We have different prices range according to menu and deals

PROMOTION:
 Facebook page
 Instagram
 Pamphlets
 SMS

PLACE:
 Our location is Malir Cantt
 PROJECT 1

COMPETITIVE ANALYSIS

The proposed SIZZLING BITES will aim at providing good quality food and innovative
service to people especially families of upper-upper and upper middle group. . There are number
of restaurants located in different areas in Karachi. Especially at Malir Cantt there are some
competitions in our way which are also targeting to the upper-upper and upper middle class. The
main competitors are MY SECOND HOUSE WIFE RESTAURANT.

TARGET MARKET

Our products will be targeted to the upper-upper and upper middle class because we will provide
an appropriate environment with the product with an extra intended service. As this is a
restaurant we are expecting that families will contribute more in our customers.

TOTAL INVESTMENTS

Equity 25,00,000
Debts 5,00,000
Total 30,00,000
 PROJECT 1

INCOME STATEMENT

SIZZLING BITES

Forcasted Income statement

Amount in "Rupees"
Note 2019 2020

Revenue 1 12,816,000 15,463,800

Cost of Goods Sold 2 (7,327,700) (8,977,810)

Gross Profit 5,488,300 6,485,990

Operating Expenses: 3 (3,228,325) (3,509,405)

EBIT 2,259,975 2,976,585

INTEREST (80,000) (68,367)

EBT 2,179,975 2,908,218

Taxation (370,596) (494,397)

NI 1,809,379 2,413,821
BALANCE SHEET

Forcasted Balance Sheet

Amount in "Rupees"
ASSETS Note 2019 2020
Non-Current Assets:
Property, plant and
equipment 4 1,893,675 2,294,470
Current Assets:
Stock in Trade 553,000 659,375
Prepaid rent/Security 455,079 500,587
Cash and Cash Equivalents 5 987,625 955,051
1,995,704 2,115,013
Total Assets 3,889,379 4,409,483

EQUITIES & LIABILITIES

EQUITIES:
Capital at Start 1,500,000 1,500,000
Retained Earnings 1,809,379 2,413,821
3,309,379 3,913,821
Non Current Liabilities:
Bank Loan 500,000 427,295

Current Liabilities:
Trade and other payables 80,000 68,367

Total Equities and Liabilities 3,889,379 4,409,483

 AMORTIZATION

DATA

Financing Amount 500,000

Annual Interest rate 16%
Start date of loan 2019
Frequency Annually
Tenor (Years) 5

Installment 152,705

Total interest 263,523

AMORTIZATION TABLE

S.No Date BEG BALANCE INSTALLMENT INTEREST AMORTIZED ENDING BALANCE

1 2019 500,000 $152,704.69 80,000 72,705 427,295
2 2020 427,295 $152,704.69 68,367 84,337 342,958
3 2021 342,958 $152,704.69 54,873 97,831 245,126
4 2022 245,126 $152,704.69 39,220 113,484 131,642
5 2023 131,642 $152,704.69 21,063 131,642 -
 PROJECT 2

INVESTMENT IN STOCKS
STOCKS OF
INVESTMENT
15,00,000

LUCKY ENGRO OGDC

CEMENT FERTILIZER INVESTMENT
INVESTMENT INVESTMENT 4160 shares
1192 shares 6272 shares 34.4%
16.0% 15.7%
 ENGRO FERTILIZERS LIMITED

INTRODUCTION:
Engro Fertilizers Limited is a subsidiary of Engro Corporation and a renowned name in
Pakistan’s fertilizer industry. It is traded on the stock market under the symbol ‘EFERT. Engro
holds a vast, nationwide production and marketing infrastructure and produces leading fertilizer
brands optimized for local cultivation needs and demand. Engro is also a leading importer and
seller of Phosphate products, which are marketed extensively across Pakistan as phospatic
fertilizers.

Engro extensive market development activities have ensured a sustained pull for our primary and
secondary fertilizer products and sell out productions since launch. Engro Fertilizers Limited
enjoys loyal customer base across Pakistan owing to its trusted fertilizer brands and continual
farmer assistance in training and education.

Engro Fertilizers Limited was incorporated in June 2009, following a decision to demerge
fertilizer concern from its parent company Engro Chemical Pakistan Limited. The continual
expansions and diversifications in its enterprises necessitated a broad restructuring in Engro
Chemical operations and management. To facilitate better oversight, Engro Chemical Pakistan
was converted into a holding company named Engro Corporation, and its fertilizer business was
subsequently demerged to a newly formed Engro subsidiary –Engro Fertilizers Limited..

OUR VISION
We are passionate about transforming the agricultural landscape, bringing change and helping
the farmer grow.
 OGDCL
Oil and Gas Development Company Limited commonly known as OGDCL is a
Pakistani multinational oil and gas company. It has a primary listing on the Pakistan Stock
Exchange, and secondary listing on the London Stock Exchange. Established in 1961 by
the Government of Pakistan, it was turned into a public listed company on 23 October 1997.
Today it is involved in exploring, drilling, refining and selling oil and gas in Pakistan. It is the
market leader in terms of reserves, production and acreage It is based on Jinnah Avenue, Blue
Area in Islamabad, with the Government of Pakistan holding 74% stake in the company. Rest are
held by private investors. In 2013, it has revenue of Rs. 223.365 billion and profit before
tax soaring at Rs. 90.777 billion.

CORE VALUE
 Merit
 Integrity
 Team Work
 Safety
 Dedication
 Innovation

Mission
To become the leading provider of oil and gas to the country by increasing exploration and
production

Vision
To be a leading multinational Exploration and Production Company.
 LUCKY CEMENT

Lucky cement is one of the largest producers and leading exporters of quality cement in pakistan
and is listed on the pakistan stock exchange (psx). The company has also issued global
depository receipts (gdrs), listed and traded on the professional securities market of the london
stock exchange.

Over the years, the company has grown substantially and is expanding its business operations
with production facilities at strategic locations in karachi to cater to the southern regions and
pezu, khyber pakhtunkhwa to furnish the northern areas of the country. Lucky cement is
pakistan’s first company to export sizeable quantities of loose cement being the only cement
manufacturer to have its own loading and storage terminal at karachi port.

Lucky cement strives to remain an efficient and low cost producer and is one of the pioneers to
introduce and install waste heat recovery and refuse derived fuel (rdf) and tyre derived fuel (tdf)
plants in pakistan. It also has self-sufficient captive power generation facility of 180 mw and
supplies additionally generated electricity to support the national grid. Lucky cement owns a
fleet of bulkers & trailers, which gives added advantage in terms of logistics and efficient
deliveries to all types of customers spread across the length and breadth of the country.

Vision
Ensure sustainable leadership position in Pakistan & increase global footprint in the cement
sector. Identify & capitalize on diversification opportunities to maximize shareholders’ value
while remaining socially responsive in all spheres of operations.

Mission
We strive to be a growth oriented company by identifying opportunities, making the right
investments, producing high quality cement and using innovative technology to achieve cost
competitiveness and customer satisfaction. We endeavor to harness the best human resources and
providing them a level playing field in achieving long term goals. We aim to deliver sustained
growth and enduring value to our stakeholders. We recognize our obligations towards
environment and corporate social responsibility and seek to mitigate any adverse effects on our
environment.
 STOCKS
Total Investment 1500000
Investment in 3

No of
COMPANY WEIGHT AMOUNT
Shares

OGDC 40% 600,000 4,160

ENGRO
FERTILIZER 30% 450,000 6,272

LUCKY 30% 450,000 1,192

100% 1,500,000 11,624

Invested in OGDC,ENGRO FERTLIZERR LUCKY CEMENT

# of OGDC shares 4160 shares
# ENGRO FERTILIZER of
shares 6272 shares
# of LUCKY CEMENT shares 1192 shares

TARGET PRICE
COMPANY DPS FY19(DIV1) P0
(P1)
OGDC 183.8 10 144.23
ENGRO FERTILIZER 71.996 11 71.75
LUCKY CEMENT 428.954 9 377.57

R= DIV1+P1-P0
P0
COMPANY RETURN
OGDC 34.4%
Engro fertilizer 15.7%
LUCKY CEMENT 16.0%

R(avg)= rA+rB+rC
3
 R(avg)= 22.01%

WACC
WACC= WdRd(1-t)+WcRc
Tax rate : 20%

AMOUNT WIEGHTS RETURNS

DEBT 500000 25% 16.0%
STOCKS 1500000 75% 23.65%
Total 2000000 1

WACC= (0.08)*(0.70)(1-0.20)+(0.92)*(0.23)
WACC= 20.9%

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