HAMID INTERNATIONAL RICE MILL 2010

IQRA UNIVERSITY
IU

Report on :

Rice :

HAMID INTERNATIONAL RICE

Group members:

LUKMAN (4499)
HAMZA JAMAL (4856)
ANUM BUKHKARI (4718)
AHMER KHAN (4853)
KASHIF ALI (6236)
SAHAR AKBER (6284)
HUMAIR KHANANI (4000)

Course Title:Management Accounting

FALL 2010 Students

BBA

Submitted to:

Mr. Athar Iqbal

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ACKNOWLEDGMENT

We would like to express our whole hearted thanks to God who has blessed us with the
knowledge, insight and opportunity to work on this report.

We would also like to thank our respected teacher Mr. Athar Iqbal who has given us this
opportunity to explore our skills and made a product costing report on the HIR MILL. He
has given us thorough knowledge and provides deep understanding about costing
methodologies and because of that we are able to complete this final research.

We would also like to thank all people who helped us by giving valuable information
about the Various Components. Their positive responses helped us in preparing a
valuable Report. Special Thanks to FAME ENTERPRISES.

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Letter of Transmittal

Respected Sir,

We hereby present our Final Project report on “HAMID INTERNATIONAL” and the
product is “SUPER BASMATI RICE” assigned in our best efforts by collecting data
from various sources and we learn about the Concepts of Accounts in current market
applied by different Businesses in different ways.

The report has been prepared keeping the course requirement in mind. We have tried our
level best to apply the basic Accounting concepts taught to us. We hope that our work
meets your requirements by you as a mandatory part of our Course. In this report we have
tried to put and standard.

Though we have tried our best, but still humans are prone to errors. It was a great
learning experience .We hope this report would be to your liking and Hope you enjoy and
find our work satisfactory. If you have any further queries, we will please to satisfy.

Sincerely,

LUKMAN

HAMZA JAMAL

ANUM BUKHARI

AHMER KHAN

KASHIF ALI

SAHAR AKBAR

HUMAIR KHANANI

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HIR MILL

Company Profile:

HAMID INTERNATIONAL RICE (HIR), one of the leading Basmati Rice exporters of
Pakistan, has grown into an organization which is recognized for its remarkable
performance and supply of high quality rice to the customers. What sets us apart from
other manufacturers is our emphasis on building strong relationship with our customers
and targeting our efforts around the customer need.

Identification of Firm

FIRM NAME HAMID INTERNATIONAL RICE MILL

COMPANY S-9, GULBAI, NEAR MERCHANT RICE, S.I.T.E. KARACHI.
ADDRESS:
CONTACT: MUHAMMAD REHAN AZAM
PHONE 021-32593918
EMAIL rehanazam78@yahoo.com /info@walita.com
PAYMENT 100% L/C at Sight
TERMS
INVOICES TO BE HIR MILL
PAID TO
TYPE OF FIRM Partnership
ESTABLISHED 2000
YEAR
BUSINESS Manufacturers, Exporters, Importers,Distributors.
NATURE
BANK BANK ALHABIB JODIA BAZAR KARACHI.

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NUMBER OF 32
WORKERS
MANAGERIAL 5
STAFF
EXPORT U.A.E
MARKETS USA
SOUTH AFRICA
EGYPT
MALYSIA

TECHNICAL INFORMATION

RICE RANGE SUPER BASMATI, SUPER KERNAL, IRRI-6, IRRI-9, SELLA

1121, 1121 BASMATI, 386
QUALITY A+ & broken percentages
ORIGIN OF RAW PUNJAB

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MATERIALS
MONTHLY 2500-3000TON
PRODUCTION
CAPACITY
DAILY 100TON
PRODUCTION
MINIMUM 25TON
ORDER
QUANTITY IN
TONS
TOTAL 15 (further divided into 4 process units)
MACHINES
TYPE OF Husking, Soorting, Cleaning, Washing, Poolisher, Grain Adjuster
MACHINES and all other required machines needed in rice manufacturing.

Company History:

HAMID INTERNATIONAL RICE (HIR) brings you Basmati Rice from the lush green
and water filled fields of (Punjab) Pakistan, which are best suited to grow pure and
genuine Basmati Rice because the company believes in bringing premium quality rice for
its customers. Our aromatic rice includes Super White Basmati Rice and Parboiled Super
Basmati Rice. We are serving international customers and exporting premium quality
white Basmati and Parboiled rice to European and Middle East countries.

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TYPES OF RICE:

Super Kernel is long grain rice with a slender kernel, four to five times longer that it's
width. The grains are separate, light and fluffy when cooked, and mostly used for recipes
such as biryani, which require rice of a distinct shape and texture.

Basmati Rice 385, is dry and separate when cooked, resulting in long, thin grains, since
the long grain increases only in length when cooked.

Brown Rice, is the least processed form of rice, as the kernels of rice have had only the
hull removed. The light brown colour of brown rice is caused by the presence of bran
layers, which are rich in minerals and vitamins, especially the B-complex group. With a
natural aroma and flavour similar to that of roasted nuts or popcorn, it is chewier than
white rice, and slightly more nutritious, but takes longer to cook. Brown rice may be
eaten as is or milled into regular-milled white rice.

Parboiled Rice is rough rice that has gone through a steam-pressure process before
milling. It is soaked, steamed, dried, and then milled to remove the outer hull. This
procedure gelatinises the starch in the grain, and is adopted at the mill in order to harden
the grain, resulting in less breakage, thus ensuring a firmer, more separate grain.
Consumers and chefs who desire extra fluffy and separate cooked rice favour parboiled
rice. 

WareHouse Faicility:

HIR houses a spacious and hygienic warehousing facility with the capacity of 10000 MT.
This allows the managements to be more flexible in their storage of raw materials and
also for production. Stocks are monitored time-to-time and fumigated.

Main Products are

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1. Super Basmati

2. IRRI-6 (PARBOILED)

3. IRRI-6 (5%&25% Broken)

4. IRRI-9 (5%Broken)

5. IRRI-9 (PARBOILED)

6. 386

7. 1121 (SELLA)

8. 1121 (white)

HISTORY OF BASMATI:

Basmati, the king of rice, is held in the highest regard world over. Among all the other
varieties of rice, none have the distinctive long grains or the subtle aroma for which this
grain is considered so special. This also justifies the premium this rice commands against
all other rice of the world.

It takes birth in the most fertile valleys and plains of Pakistan. It is harvested by hand
with delicate care, aged to perfection and then processed. The result is an extra long,

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pearly white, delicate grain with an irresistible aroma and delectable taste bringing alive
an age of nawabs and emperors, glittering courts and legendary chefs.

The name basmati originated from a Sanskrit word "BASH", which means smell. This
rice has special features, which make it's naturally long grain fragrant and delicious in
taste.

The legend says that this rice was meant to be consumed by maharajas (kings), maharanis
(queens), princes and royal families. This unique rice is just one crop a year grown only
in northern India and Pakistan, the region known as old Punjab - the land of five rivers
originating from Himalayas.

LOCAL MARKET:
Rice is the second largest food item of the pakistani household after wheat flour. During
the last decade, the production of rice in pakistan has been around 5 million ton per
anum. Around 2.9 millions ton of rice is available for domestic consumption of pakistan.
The per capita avalability of rice in pakistan is 20.78kg.

MARKET SEGMENTS:
According to buying power of the rice consumers, the market for rice can be broadly
categorized into three major groups. Lower income group, includes people with income
level of less than rs 300 per month. The majority market of broken rice and irri rice. The
price of broken rice is almost equivalent to the wheat prices.

MIDDELE INCOME GROUP, includes middle and upper incoome households in the
urban areas with monthly income of rs 5000-10000. This segment purchase good quality
rice ( polished rice as well as semi-polioshed rice) upper income group includes the upper
income segment of the society, they prefer to buy high quality branded rice. The hotels
and resturants also purchase polished and semi polished rice for their different dishes.

RAW MATERIALS:

The raw materia of the husking unit is paddy, obtained from rice harvesting. The paddy
can be purchased from the local grain market(MANDI) as well as directly from the

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farmers on cash basis. The paddy- harvesting season starts in mid of september and ends
in december.

Specifications of BASMATI RICE:

Product: Brown Rice (Cargo) / White Rice / Par-boiled Rice

Milling Grades: Double Polished / Silky Polished, Color Sortexed

Broken Percentage: 2% Max.

Average Grain Length (AGL): Super Basmati = 7.2 MM

Packaging: 1 / 2 / 5 / 10 / 25 / 50 Kgs Bags & Cartons

Packaging Material: Polypropylene, HDPE, PE, Cardboard Boxes, Cotton & Jute

COSTING

SUPER BASMATI:

Super basmati rice is brought in the form of paddy from the farmers(fields) at the cost of
65 rupees per kg. At that time the rice is harvested from the field and is been transported
through trucks from field to factory at the cost of 45000 rupees.

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Stages of production of SUPER BASMATI RICE:

1.Cleaning:

First stage is cleanning process in which paddy is seprated from the rice and other
materials like stones are removed from the grain.

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2.Husking:

Rice husking unit will use the paddy as raw materials. Husking is the process of
seperating the rice from the husk. Rubber roll and hullers are used to shatter the paddy to
produce rice.

3Milling:

Milling helps in removing broken percentages and seperation of head rice, rice powder,
dust and barn.

Polishing unit:

Rice polishing unit will use the rice for cleaning and polishing. Various types of cleaners/
polishers are used to give shinning and silkness to the rice. The husking of paddy
produces different products, including 53% head rice, 10% broken rice, 2.5% powder
rice, 33.50% husk and 1.00% waste and dust particales to make different value added rice
products like silky and non silky rice.

Grading:

The process of grading is to settle down the rice value into process form such as A grade
B grade broken percentages and etc.

Storting:

Final process is sorting that helps in managing grain size short,medium or long.

Storage:

In the last the rice is filled up in packing of bags which includes: 5kh, 10kg, 35kg , 25kg
and 50kg packing.

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Statement of cost of
goods sold

1,625,00
Raw Material Used 25000kg@Rs.65 per kg. 0

Add: Transportation Cost 45,000

1,670,00
Net Purchases 0

Direct Labor @Rs. 0.5 per kg 12,500

1,682,50
Prime Cost 0

Add: Factory Overheads (Milling Cost) 25,000

1,707,50
COGS 0

Raw Rice Purchase @

Rs. 65 per kg 65
Transportation
Cost 1.8
Total Cost of Raw
Rice 66.8
Milling Cost 1.5
Wastage Cost 7.8
P.P bag cost 1
Total Cost
Incurred 77.1

Working to justify the wastag percentage

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Total Rice 681,634

Ready Goods Lot # 1 KATTA 8280 READY RICE 50.25 KG 416,070 61.04

Ready Goods Lot # 2 KATTA 216 READY RICE 50 KG 10,800 1.58 69.15

Ready Goods Lot # 3 KATTA 889 READY RICE 50 KG 44,450 6.52

PONIA GRAIN KATTA 1740 50 KG 87,000 12.76 36 per

kg

BROKEN 1 KATTA 1631 50 KG 81,550 11.96 32 per

kg

BROKEN 2 KATTA 82 50 KG 4,100 0.60 32 per

kg

PIN POINT KATTA 13 50 KG 650 0.10 18 per

kg

DUST, STONE, KATTA 5 112 0.02 0

GARBAGE

POWDER KATTA 540 18,937 2.78 15 per

kg

ELEVATOR/PADDY KATTA 7+9 1,125 0.17 21 per

kg

CSR KATTA 329 50 KG 16,450 2.41 27 per

kg

TOTAL GROSS WEIGHT 681,244 99.94

390 0.06

SHORTFALL/EXCESS

TOTAL NET WEIGHT 681,634 100

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