GENSANTOS FOUNDATION COLLEGE INC.

Bachelor of Science in Business Administration

Major in Financial Management
Bulaong Extention, General Santos City
__________________________________________________________

A FEASIBILITY STUDY OF
ESTABLISHING PRESS M FROZEN COW MEAT
FOR EXOPORTATION IN POLOMOLOK
__________________________________________________________

In Partial Fulfilment of the

Requirements in
Business Finance
__________________________________________________________

Presented by:
Kayl Batayo
Miah Claire Guma
Princess Claire Muñasque
Aizle Mae Salvacion
Kaye Sullano

Presented to:
Mr. Juvir Ian T. Inductivo, LPT
Instructor
 September 2022

CHAPTER I

INTRODUCTION

This chapter discusses the background of the study, the rationale of the study,

objectives of the study, scope and delimitation of the study, the research design,

respondents, locale of the study, data gathering procedure, the definition of terms use

in the study and the significance of the study.

1.1. Background of the Study

Cow meat is the third most widely consumed in the world market. Hence, there is

a major source of frozen meat all over the world. The meat industry is producing live

or frozen meat cow for export to provide the needs of consumption of the consumers.

The frozen meat and meat products are wrapped before they are placed in retail display. The

principal reason for packaging meat during frozen display is to minimize moisture loss.

Moisture loss causes deleterious effects on the texture, flavor, and color of the meat. To

sustain the flavorful taste of cow meat. Thus, frozen meat is common in international or

overseas transports must be frozen. (Lawry et al., 2018)

According to the report of Philippines statistic authority about the cattle situation

report, April -June 2020. The total cattle production from April to June 2020 was

estimated at 46.00 thousand metric tons, live weight. This indicates a decline of 29.5

percent from the previous year’s same quarter output of 65.20 thousand metric tons,

live weight.
 Research Conducted by (STATISCA PH) among regions, Northern Mindanao was

the top producer of cattle during the quarter with 8.47 thousand metric tons, live

weight. This was followed by Calabarzon and Ilocos Region with corresponding

productions of 8.17 thousand metric tons, live weight, and 5.40 thousand metric tons,

live weight. These three regions shared 47.9 percent to the country’s total cattle

production.

The cow industry is an important part of the Philippines’ economy, and the

demand for meat products continues to grow. The local producer of live cows is

difficult to find a supplier for exporting their animals. Polomolok is splendidly gifted

with livestock resources, especially in cow. Every year the province has increasing

demand in both local and international markets of livestock because of its high-quality

meat

The researcher envisions the potential investment of establishing frozen cow

meat to help the local to distribute by exporting and putting up the name of the

province and its high-quality meat. In addition, it will help to increase the economy by

means of exporting frozen cow meat products from the Philippines to a global market

in order to meet the international demand.

1.2 Rationale of the Study

The proposed project of establishing frozen cow meat engage slaughtered live

cow and processes them into packaging production. This project was conceptualized

due to the massive demand of frozen meat in the international market especially, in

Filipino stores in Asia. Frozen cow meat is presently being utilized as raw

commodities the project will target the quality taste of the international market for the
meat industry. This proposed business helps to assess the profitability and at the

same time to give work to the local individual in municipal of Polomolok and

furthermore can possibly acquire foreign exchange by the export.

1.3 Objectives of the Study

The objective of the study is to test the feasibility, viability, and profitability of

exporting frozen cow meat in the municipal of Polomolok. Specifically, the study aims

to assimilate the following:

1. Explain the frozen cow meat and export in Polomolok

2. Analyze the viability of establishing frozen cow meat for exportation in

the following aspects:

1. Marketing

2. Technical

3. Management

4. Financial

5. Socio-economic

1.4 Scope and limitation

The primary goal of the frozen cow meat project is to determine its viability in

terms of market, technical, financial, management, and socio-economic factors. The

researcher wants to look into the possibilities of frozen cow meat being exported to

the Filipino market in Asia.

The study is limited only to the slaughtered live cow and its packaging process

in Polomolok and does not cover other concerns such as establishing production of
live cow, the respondents will be the people who are exposed and knowledgeable in

the operations of the frozen cow meat packaging.

1.5 Research Methodology

This part of the study covers the methodology aspect used in the research which

includes the research design, the respondents, the locale of the study, and the data

gathering procedure.

1.5. 1 Research design

This study will use a quantitative research design with a survey method to

combine factual data to assist investors in making project decisions. Quantitative

research focuses on objective measurements and statistical, mathematical, or

numerical analysis of data collected via polls, questionnaires, and surveys, as well as

manipulating pre-existing statistical data using computational techniques.

Quantitative research is concerned with collecting numerical data and generalizing it

across groups of people or explaining a phenomenon (Babbie, 2012).

1.5.2 Respondent

The study's respondents were the manager and employees of Silway 8 slaughter, a

government-owned company that currently operates in the slaughterhouse

manufacturing sector in Region 12 in Polomoloks’ barangay Silway 8.

The advocate prefers the forename establishment, with personnel drawn from

only those who are completely applicable to the study's objectives.

 1.5. 3 Locale of the Study

This research will be carried out in Polomolok, with the proposed location being in

the municipality of Polomolok. The 1km slaughterhouse for frozen meat processing is

well established. The frozen cow meat will be transported easily from the

slaughterhouse to Dadiangas port. Nearby, we have competitors at the barangay

Silway 8 slaughterhouse, which is owned by the government and produces only for

the local market in the municipality; however, this proposed business will also

produce for the international market, particularly in Filipino stores in Asia

1.5. 4 Data Gathering Procedure

The researcher must first obtain permission from the faculty head to conduct the

study's survey. Once approved, the researcher will send an email to the respondents

requesting that they invest valuable time and effort in completing the online survey

questionnaire.

For fact evaluation and interpretation, all of the records gathered could be tabulated,

collected, and statistically computed.

1.6 Definition of Terms

 To provide a piece of better knowledge and comprehension, the following

terminologies are defined based on how they are operationally used in the feasibility

study.

Cow meat. It refers to cattle meat that is widely consumed around the world

and used as raw materials for other product

Financial. It refers to the aspect of frozen cow meat production that deals with

all financial problems such as start-up capital, sources of cash, return on

investments, and other financial considerations.

Management. It refers to a business term that refers to the process of

allocating finite resources, particularly the human resource. It entails a clear and

explicit definition of roles and responsibilities, as well as the flow of authority and

manpower requirements.

Marketing. It refers to the set of operations that helps a business achieve its

goals in the study. Strategic planning, taking into account both the internal and

external environment, is one of these activities.

Packaging. It refers to the company’s packaging design.

Slaughtered meat. It refers to the size of meat cut in accordance with the

standard, size of the requested part of the live cow.

Socio-economic. It refers to how the prospective business’s actions influence

the environment. It is concerned with the overall economic value that the company

will bring.
 Technical. It refers to the study’s basic structure and technical aspects. This

comprises the proposed project’s equipment, materials, and structure plan, as well as

the supply source.

1.7 Significance of the Study

This study is in line with the system orientation of a commodity study with the

purpose of determining the potential production investment opportunities in the

municipal of Polomolok when it comes to exporting frozen meat. The following are

some of the ways why the findings of this inquiry could be extremely important and

beneficial:

To Customs Administration Student- Enables the student to learn about

starting a business and the technical aspects of exporting.

Local government unit- This study will aid the government to be cognizant of

what Investment priority to study.

Potential Investors- For investors to assess the physical and financial resources

required, as well as to determine the prospective market, competitors, facility costs,

and revenues in the construction of a project.

CHAPTER II

This chapter discusses the market-related aspects of the proposed business. This

includes the products to be offered, the market research analysis which explains the
target market, the market size and trends, the competition, estimated market share,

and the marketing strategies which include the sales and distribution the pricing

strategy, and the promotion strategy.

2.1 Business description

This part of the study presents an overview of the business’s vision, mission,

goals, and business logo.

2.1.1 Vision, Mission, Goals, And Business Logo

The mission and vision serve as the game plan of the organization to

achieve what we aim, imposing the mission and vision will lead to our

destination. Having a game plan for an organization will help the team to be

organized and well knowledgeable on their respective obligations this helps to

give productivity in the organization and increase efficiency to everyone.

2.1.1.1 Vision
Our vision is to establish ourselves as polomolok leading supplier of froze

cow meat.

2.1.1.2 Mission
Our mission is to build a slaughter house whose focus only in cow meat, we

will not only sold in polomolok but exported to Thailand.

2.1.1.3 Goal

 Enhance the quality of meat in the country for exportation purposes

 Provide opportunities to a local individuals in Polomolok

 To produce customer base in the domestic and international market

 To introduce our own meat to the meat industry worldwide

 2.1.1.4 Logo

The logo on the proposed business serves as a symbol to properly identify

the business in the meat industry. The first symbol is the image of the

Philippine native cow which is symbolized as the business’ product. The

symbol of a ship that is above the globe means that the proposed business is

targeting to supply the some places in Asia particularly in thailand . PRESSM

is derived from the proprietor’s name. Through this business logo, it is easier

to find and see the business it features three colours, which make the layout

appealing.

2.2 The Product

Meat is an important source of nutrition for many people around the world, and

one of them is a cow meat.

Frozen cow meat is presently utilized as raw materials or ingredients for the use of

any beef meal for consumption. Meat and eligible offal is the business product for the

purposes of high demand in meat industry.

TABLE 1
 List of the Products

Cow meat

frozen meat is made from cow parts

which froze. During freezing the meat

must be cut into standard size and

take place to packaging and let it

froze to contain the freshness and

prevent or slowdown the growth of

micro-organism, frozen cow meat is

nutritious product that can use any

type of meal.

Eligible Offal

Fresh offal cow meat referred to as

variety meats is the name for internal

organs. Offal dishes are considered

gourment food in international

cruisine it is flavorful and nutritious

product.

2.3 Market Research Analysis

This portion of the study presents a piece of information about the prospective

market or target customers, in order to get the advantage over the competitors. It
identifies and analyzes the target market, the market size and trend, the competition,

and estimated market share.

2.3.1 Target Market

The proposed PREESM frozen cow meat in polomolok will aim to produce

frozen meat in Filipino store in Asia as well we distribute also the domestic

market. The proposed business will be offering the high-quality meat and very

safe product to sell. most of all, worthy spending meat products. Our main

target markets of the proposed business in exportation is Thailand in domestic

public market in municipal, and those individual who live in the barangay within

the municipal area. The population of the barangay within the city is shown in

the next table.

2.3.2 Market Size and Trends

The market of the business will be the people of Polomolok, South

Cotabato with the total population of 152,589 with population growth rate of

1.89% as of 2015 according to Philippine Statistics Authority. The table shows

the total number of population as of 2015 to come up the business target

market. It is less the poverty rate of 14.29% and the difference is multiplied by

the percentage of willing respondents of 81%, with the product of 105,935 as

the market size. Lastly, the researcher uses a 10% margin of error,

considering that the sample size is only 80 respondents compared to the

thousands of populations of Polomolok. Furthermore, the researcher analyzes

that the chosen percentage of margin error is conservative enough to cover

the errors in the computation of the total market for the proposed business.
The market size which is 105,935 less the margin error of 10% is 95,342 and

that is the total estimated market size of the business.

While Thailand 2020 population is estimated at 66,190,200.81 people at mid

year. Below is a table showing the total population for individuals ages 15-64

years old in India. It will calculate the expected number of consumers for the

year based on the population.

Table 1

Estimated Market Size (Domestic)

Particulars Total

2015 Population Ages 18-45

152,589
Years Old

Less: Poverty Rate 14.29%

Target Market 130,784

% of Willing Respondents 81%

Market Size 105,935

Less: Margin of Error 10%

Estimated Market Size 95,342

Source: Philippines Statistics Authority (2015 census)

Table 2
 Estimated Market Size (International)

Particulars Total

2020 Population Ages 16-55 36,971,310

Years Old

Less: Poverty Rate 8.8%

Target Market 66,190,200.81

% of Willing Respondents 80%

Market Size 52,952,160.648

Less: Margin of Error 10%

Estimated Market Size 52,952,160.548

To determine the market size of the business internationally, the researcher

estimated the total population for individuals ages 16-55 years old in thailand.

In 2020, that bracket's estimated population is 36,971,310. After subtracting

the poverty rate of 8.8% the business target will be computed. The number is

then multiplied by 80%, which represents the willing responders. The survey

was performed among 100 people, and the percentage of willing responders

was calculated. If the business is formed, the 80 people are interested in

taking part.

2.3.3 Competition
This type of business, pressm frozen meat, has a lot of competitors in the

municipal, including both private meat shops and government

slaughterhouses. Since then, the business has been open to both export and

domestic markets. The indirect competitors are mostly found in the production

of the municipal public market. Because there are few competitors to compete

with, the proposed business goal is feasible. The Pressm has been

commercialized both in the Domestic and international. However, the number

of entrepreneurs was low, and the industry performed as expected thanks to

their effective marketing strategy. In general, there are few competitors in this

industry, with most frozen meat entrepreneurs selling their product at market

stalls or from their homes.

2.3.4 Demand
The ability of a business venture to provide the product that is desired by

the target customer group is critical to its success. Our frozen meat product

will meet the needs and wants of customers in order to meet customer

demand. In economic terms, demand refers to a consumer's desire to use a

proposed business and willingness to pay a price for a specific product. The

researcher chose to focus on people aged 15 to 64 because the study had

constraints such as limited resources, discovering needs, and manufacturing

capacity.

The frequency of annual market consumption is summarized in the table below

(per kilo). The total frequency in a year must be used to calculate the overall

demand for the business.

Table 4
 Frequency of Annual Market (Domestic)

No. of Total Frequency

Period % Frequency
Respondents in a Year

Once a day 9 11% 360 40.00

Once a week 11 14% 48 6.52

Twice a week 29 36% 96 34.37

Once a month 15 19% 12 2.22

Twice a month 17 21% 24 5.04

Total 81 100% 88.15

Source: Survey conducted by 81 willing respondent.

According to the survey conducted, there are 81 respondents who are

willing to avail the product, and 9 of them want to purchase the product once a

day. On the other hand there are 11 of them wants to purchase once a week,

29 for twice a week, 15 for once a month, and 17 for twice a month.

To come up with the total frequency in a year, for once a day, 9 respondent

is divided by the total willing respondent which is 81 to get the percentage of

11%. After getting the percentage, it is then multiplied by the frequency of 360

to get the frequency in a year for once a day. The same process for once a

week, twice a week, once a month and twice a month. After getting the

frequency in a year for each period, sum up it all to get the total frequency in a

year which is 88.15.

Table 5
Frequency of Annual Market (International)
Period No. of % Frequency Total

Respondents Frequency in

a Year

Once a day 8 9% 365 32.4

Once a week 20 24% 52 12.48

Twice a week 15 18% 104 18.72

Once a month 25 29% 12 3.48

Twice a month 18 20% 24 4.8

Total 86 100% 71.88

To calculate the average frequency, 6 responders with a percentage of 9%

multiplied the frequency of 365, resulting in a frequency of 32.4each year. The

frequency is 12.48 when the proportion of 20 over 86 is multiplied by 52. The

willing responders' percentage is calculated by multiplying 15 divided by 86

multiplied by 104 to achieve a frequency of 18.72 for a period of twice a week.

Because the frequency in a year for a period of once a month is 12, you can

simply multiply it by 29% to get a total frequency of 3.48. Finally, over a period

of twice a month, with 18 responders equalling 24% multiplied by the

frequency of 24, the result is 4.8. In all, the business's yearly frequency is

71.88

the total demand of the proposed business. The total demand will be used in

getting the market share of the business.

 Table 6
Total Demand (Domestic)

Particulars Total

Estimated Market size 95,342

Average Frequency 88.15

Total Demand in Person 8,404,182

The estimated market size of 95,342 is multiplied by the average frequency

of 88.15 to get the total demand of 8,404,182.

Table 7
Total Demand (International)

Particulars Total

Estimated Market size 52,952,160.55

Average Frequency 71.88

Total Demand in Person 3,806,201,300.19

The estimated market size of 52,952,160.55 is multiplied by the average

frequency of 88.15 to get the total demand of 3,806,201,300.19

2.3.5 Supply
The proposed business will provide a high-quality standard of meats that

supply the needs and wants of the customers specifically in the region of

where the proposed project is located. The proposed business produces fresh
and frozen meats that will be scaled based on the demand of the products in

the market. In the table below shows the competitors market share.

Table
Table 8
Total Supply

Competitors Market Share

Number of
Average No. of kilos working Market
Competitor(s)
per day days per Share
year
Silway 8
Slaughter House 1,500 312 468,000
Total

In determining the supply or the market of the direct competitor, the

researcher obtained information through the interview conducted. In computing

the total supply, the average number of kilos of the establishment per day

which is 1,500 kilos was multiplied by the number of working days per year

which is 312 to get the product of 468,000 which is the market share of the

only.

2.3.6 Demand and Supply Analysis

To determine the proposed business share in the demand pie, the demand

and supply analysis is provided on the table below.

Table 9
 Demand and Supply Analysis (Domestic)

Demand and Supply Analysis

Particulars Total

Annual Demand 5,805,242

Less: Annual Supply 468,000

Free Market 5,337,242

The free market is computed by deducting the total annual supply to the

annual demand. In this case, 5,805,242 total demand of cow meat was

deducted by the total annual supply of 468,000 to get the free market of

5,337,242.

Table 10
Demand and Supply Analysis (International)

Demand and Supply Analysis

Particulars Total

Annual Demand 3,806,201,300.19

Less: Annual Supply 468,000

Free Market 3,805,733,300.19

2.3.7 Market Share

 The table shown below is the computation on getting the share of the

proposed business in the market.

Table 11
Estimated Market Share (Domestic)

Particulars Total

Annual Capacity 3,993,600

Divided by: Total Demand 5,805,242

Total 68.79%

The estimated market share of the proposed business is computed by

dividing the annual capacity of 3,993,600 by the estimated market demand of

5,805,242 to get a percentage of 68.79%.

Table 12
Estimated Market Share (International)

Particulars Total

Annual Capacity 3,993,600

Divided by: Total Demand 3,806,201,300.19

Total

The international estimated market share of the proposed business is

computed by dividing the annual capacity of 3,993,600 by the estimated

market demand of 3,806,201,300.19 to get a percentage of

 Estimated Market Share

Proposed
Business-
47.52%
Free Market-
51.92%

Silway 8 Slaughter House-0.56%

As you can see in the pie chart above the wide space which is the color

green represents the Free Market with the percentage of 51.92%, meaning

there is a wide/big space for possible company business that will engage in

selling fresh and frozen cow’s meat in the area. The red stands for the existing

player in the area where the proposed project is being established due to the

number of existing players in the area it has only 0.56% of the percentage in

the market. Lastly, the blue color represents the market share of the proposed

business which is about 47.52% of the market share, as a newly entrant in the

industry.

2.3.8 Machine Capacity

The proposed business will produce fresh and frozen cow’s meat based on

the capacity of its workforce. The table below shows the computation to get

the annual capacity.

 Table 13
Machine Capacity

Total minutes of operation per day (8hrs. X 60mins.) 480

Divided by number of minutes required for production 120

Total Capacity in a production 4

Multiply by number of butcher 10

Total Capacity per day 40

Multiply by number of units produced by butcher (kilo) 400

Total number of units produced in a day (kilo) 16,000

Multiply by number of working days per year 312

Total Annual Capacity 4,992,000

Practical Capacity 80%

Practical annual capacity(kilo) 3,993,600

The total minutes of operation per day is 480 minutes is divided by the number

of minutes required for production of 120 to get the capacity in a production of 4.

The capacity in production is multiply by the number of butcher to get the total

capacity per day. Then, it is multiplied by the number of kilo produced by butcher

and multiplied again by 312 days which is the working days to get the total

capacity of 4,992,000. Lastly, the total annual capacity is multiplied by the

practical capacity rate of 80% to get the practical annual capacity of 3,993,600.
2.4 Marketing Strategy
In this section, discusses the PRESSM frozen cow meat pricing strategy and

promotional strategy. The marketing strategy is the effect by the price, promotion

places. Thus, the proposed business used information from the interview conducted

with its competitor as a tool in establishing sales promotion strategies, pricing

strategy of the proposed business.

2.4.1 SWOT Analysis

The researcher business will help to determine their potential and possible

threat by using SWOT, the proposed business would analyze their

establishment of both short-term and long-term strategies for the goal of

proposed business.

2.4.1.1 Strengths
The PRESSM FROZEN COW MEAT has a quality and high

standard meat among others than can assure the customers

satisfaction in both domestic and international market. This proposed

business make sure to provide fresh meat and safety for consumption

and we only not limit our goal to domestic market but to introduce to

world meat industry, to increase our market profit and give easiest way

of exporting out product abroad.

2.4.1.2 Weaknesses
PRESSM FROZEN COW MEAT is a new entrant in the meat

industry, thus, there is no assurance that the business product will

satisfy the standard and preferences of the customer in both domestic

and international market. There will be limited customers because of the

quality competitors that produce top-quality meat in the industry.

2.4.1.3 Opportunities
PRESSM FROZEN COW MEAT may look forward to foreign

investors to improve our meat industry, and we only not targeting to

supply the domestic and international market but we are open to the

possible opening branch some part in western country.

2.4.1.4 Threats
The proposed business considered the threats of BOVINE

SPONGIFORM ENCEPHALOPATHY or commonly as “mad cow

disease” this a type of virus would be affecting the growth and it could

be fatal and it’s not a healthy meat to sell.

2.5 Pricing Strategy

Price is a major parameter that affects company revenues

significantly. One of the components of marketing which contribute to a

large amount in achieving of the business sales and profit is the pricing

strategy according to STATISCA (2020)

The proposed business pricing strategy will based on competitor

when the researcher conducted a survey among their competitors price.

This method is to know the customer’s buying behavior for developing

our strategic pricing strategy to estimate our profit.

 TABLE10
PRICING STRATEGY
FROZEN COW MEAT PRICE PER KILOGRAM
SILWAY 8 SLAUGTHERED HOUSE PHP 400.00
PROPOSED BUSINESS PHP 250.00
PRICE DIFFERENCES PHP 150.00

In the last DTI price year 2018 is 290 per kilogram. According to

STATISTICA (2020) the total number of cow slaughtered for meat

production in the Philippines amounted to about 885 thousands heads.

The PRESSM pricing strategy is competitive than our competitors since

our meat is high quality.

2.6 Promotion Strategy

The proposed business will have different kinds of promotion strategy to attract

potential customers a table is shown below to present potential promotional

expenses. The researcher chooses the following advertising medium for the

proposed business:

Facebook Ads- The proposed business will have its own Facebook page to easily

reach the public and will run an ads during launching.

Tarpaulin- The proposed business will utilize 1 piece tarpaulin upon grand

opening with a size of 5 ft. x 10 ft. and a total cost of P1,500.00. This will help

customers to easily be informed as they pass by the establishment where the

proposed business will be located.

2.6.2 Promotional Sales

A marketing strategy in which a product is pushed through short-term activities in

order to generate demand and sales is known as sales promotion. The firm

discovered the most effective sales marketing strategy.

  Consumer Sales Promotion- is a type of sales promotion that is

targeted at end users. The basic goal of customer-oriented promotion is

to increase income by attracting new customers and protecting existing

ones. Promotion would be through:

a) Direct Marketing- business shall have its sales personnel who

is in charge of promoting offering directly to consumer

through the means of direct email, sales meeting or sampling.

CHAPTER III

TECHNICAL ASPECT

This chapter discusses the planned business's technical viability, as well as the

building, location, and surrounding map. This chapter also covers the flow of goods,

as well as the availability of resources, equipment, and facilities for use in the

business's actual operations, as well as the waste disposal required for the proposed

business's operation.

3.1 Technical Process

This section of the research covers the business's service flow as well as the

technical method of procuring the materials required for its operation. A technical

process is used to evaluate the specifics of how the proposed business intends to

deliver its products to customers. Consider materials, labor, transportation, the

company's location required for production.

A. Service Materials
 Customer Inquiry no Exit

Checking Orders

Billing

Payment

Delivery/Pick-up

Figure 3. Service Materials

The flow of acquiring service materials is depicted in the diagram above. Prior

to the acquisition, the company will assess the materials required for its operations,

such as the number of pieces required and the amount of money set aside for

materials. Then, create a requisition to notify the purchasing department of the

required materials, which will be ordered if approved. When the materials arrive, they

are inspected for quality and condition. The invoice and purchase order are

reconciled once the materials are confirmed to be in good condition.

B. Importation

The Proposed business will engaged importation because such items or supplies are

not readily available locally at a suitable price, quality, or quantity, the proposed

business will engage in importation, in which machineries and equipment essential

for manufacturing are obtained from outside the country, primarily from China.

These items are not for sale, hire, or barter in the domestic market, but rather for use

in the firm's operations.

The exporter/Licensed Customs Broker shall facilitate

business importation of machineries and equipment.

The LCB will comply all pertinent documents, fill up the

import entry and lodge it via E2M and process the
papers to the BOC.

Once the IEIRD has been confirmed by the BOC, the LCB
will then pay the duties and taxes due on the importation
and present the release of the goods in CY-CFS.

Once the approval has been granted by the BOC for the
release of the goods, the LCB will arrange for the carrier
for the imports good be deliver to proposed business
location.
 Figure 4. Importation

The steps in the importation process are shown in the figure below.

3.1.2. Service Flow

Service flow shows the process on how the products and services are

converted into a finished product or reach the customers. Service flow would

affect the markets’ patronage of the proposed business products. This will

show how convenient the service process is for the prospect client.

Customer Inquiry NO Exit

Accommodation

Checking Orders
 Billing

Payment

Delivery/Pick-up

Figure 5. Service Flow

The diagram above depicts a company's set of operations that it performs with

all of its employees, combining many divisions to ensure that each customer has a

positive and satisfying experience. To begin, when dealing with customer inquiries,

the company will respond to their questions in a timely manner. Orders will be

checked and, if available, orders will be placed once the business has achieved

complete client satisfaction. After that, the company will move on to billing, followed

by payment settlement. Finally, the frozen cow meat must be delivered or picked up

at the business.

B. Production Plan
 Figure 6. PRESS M FROZEN COW MEAT

The frozen cow meat begins as a live cow, which is the proposed business's primary
product, and then goes through the process of being cut into various sizes and forms
according to the business's size standards. The meat may be checked in meat
inspector and submit it to laboratory to determine the quality if ready for the local and
international trade. If this is done, the packaging must be done in a way to prevent
contamination of the meat. The packaging material must be clean and approved for
food. If the meat is frozen the freezing capacity must be sufficient to assure correct
freezing.
 C. Exportation

Exporting is one strategy for companies to quickly extend their potential market

and increase revenue. The business produce, frozen cow meat, will be sent to

places in Asia which in a high demand. The documentation and method of

exporting products

Figure 7. Exportation Process

3.2. Location Analysis/Plant Analysis

This section delves into the specifics of how and where the frozen meat is made. The

proposed business plan includes a location map, a map of the surrounding area, and

a map of the planned business.

3.2.1. Location Map

The primary goal of a location map is to show the exact location of a company and its

potential operations.

The proposed business will be located in Klinan 6, Polomolok Diversion Road, South

Cotabato. The researcher is convinced that the area is very accessible for the

disposal of our waste, and that when it comes to location, this is the easiest and most

suitable location because the activities require a distance from the home. It will also

be simple to locate the proposed business due to its proximity to the highway.

Figure 7. Location Map

3.2.2. Vicinity Map

The vicinity map shows the area and places near the site where the

proposed business will be located. The Vicinity map is located at Purok

lower Maabi- Abihon Klinan 6 Polomolok, 9500 South Cotabato.

 Figure 8. Vicinity Map

3.2.3. Building Facilities/Floor Plan

The proposed business will rent a 1000 Sq. space for a total of php

120,000 per year under a least 25- year lease arrangement that will be

renewed every five years.

Proper construction and organization under the authority's supervision

makes the layout more comfortable and safer for the personnel,

preventing any accidents or property damage.

Figure 11. floor plan

 Figure 10. Building Structure

The plan was designed to incorporate good utility facilities, ventilation, and

working space.
3.3 Production Needed

This section reviews the facilities designed for the satisfaction of the customer’s

needs. These things are important to our operation such as facilities, equipment,

furniture, utilities, and waste disposal.

3.3.1 Facilities

This section discusses the different areas within the business. These areas

are required in order to have smooth operation or to make the activity of

business easier. Through this division the personnel can easily determine their

area of responsibility. The following are the divisions of the area:

3.3.1.2. Office

This area is four the officials where you can find the area of

the business owner, follow by the assistant supervision who is

facilitate the flow of the production if the owner is absent, the

office of the quality inspector where you can find the meat

inspectors as well the vetenerian and the hiring officer and office

of accountant. Basically, this one huge area is consist of 5

division in the proposed business.

3.3.1.3 Stunning area

This area is where cow rendered by a shot, this pneumatic

captive bolt into the brain. And killing box takes place

3.3.1.4 Bleeding area

This area is bleeding situation should be carried out by an incision made with sharp

knife in the jugular furrow at the base. If the neck the knife being directed towards the

entrance of the chest to serve all the major blood vessels arising from the heart.
3.3.1.5 Slaughter area

This area where actual process of slaughtering and dressing the cow, it is ventilated

area

3.3.1.6 Hanging area

This area is to process of aging or maturing meat by hanging the carcass from a

hook.

3.3.1.7 Dressing

This area provide an opportunity for inspection and evaluation of fitness for

consumption as it allows checking the meat.

3.3.1.8 Cold storage

this is special area where meat display to prevent or to reduce the determoration

process, particularly microorganism development, chilling has to be carried quickly

after carcass dousing at the end of the slaughter process.

3.3.1.9 labaratory

this is the place that describe the sampling and laboratory methods that can be used

in support of meat inspecting decisions by the official veterinarian at the

slaughterhouse.

3.3.1.10 Packaging

This area where meat packed ready to trade. If this done, the packaging must be

done in a way to prevent contamination of the meat we also add the company design

and logos to the chosen cover. the packaging materials must be clean and approved.

3.3.1.11 Distribution Room

if the meat is froze and well-packed then it must delivered on time to the customers

both domestic in also in Thailand by way of exporting.

 3.3.1.12 Rest Room/Dressing room

This area is strictly for male the dressing room is exclusive for them to sanitize their

things before entering in the production.

3.3.1.13 Rest Room/Dressing room

This area is only female employee this purpose also is the privacy and dressing room

is designed for sanitizing their things before entering in the production.

3.3.1.14 Cafeteria/Rest area

This is for all employee in the Pressm business to atleast have place to rest.

3.3.2 Machinery and Equipment

MACHINERY/ EQUIPMENT DESCRIPTION SUPPLIER UNIT QTY TOTAL

COST COST

KILLING BOX This 324,000 Mezbaha 1 324,000

machine is teknolojil

trap that eri, UK

provides

your bovine

fall onto gara

 by turning

maches up

to180

degrees.

Walk-in refrigerators 141,659 Mezbaha 2 283,318

Walk in freezer and freezers are very teknolojil

large, insulated,
eri,UK
enclosed spaces used

to store and/or display

refrigerated or frozen

food or other perishable

goods.

PRE-SKINING LINE .this equipment is 400,362 Mezbaha 1 400,362

very necessary
where cow is hang teknolojil
approximately 10 to
14 days. eri,UK

SHARPENING STONE Used to sharpen 147 Gaisano 10 1,470

the edges of steel mall,

tools and polomolo

implements such k

as butcher knife.

BUTCHER KNIVES Butcher knife is 899.00 Gaisano 1 set 899.00

 primarly used for Mall,

the butchering or polomolo

dressing of cow k

carcasses.

MEAT SAW A tool used to cut 25,300 Lazada,P 1 25,300

large chunks of H

meat into standard

size.

MEAT CRATES . Bins for the meat 355.180 Lazada 10 3,551.8

industry is very PH

important this for

the facifilities the

transfer of cold

towards the storage

room and van.

Butcher paper Gaisano Mall, 58.33 10 583.33

PH
This paper is a
special it design to
wrap and protect
raw meats from
airbone
contaminants.
 A scale or balance is a Lazada 859 2 1,718
Digital weighing device to measure Philippines
weight or mass.

Hyundai 833,000 2 1,766,00

Refrigerated trucks are Philippines
0
used to transport
frozen or perishable
goods.

Refrigerated van

PPE is equipment worn Gaisano mall, 200 10 2000

to minimize exposure
gensan
to a variety of hazards.

Ppe complete set

VENTILATOR

The use of a Mezbaha 1 10,641

ventilating fire near teknolojileri, ₱10,641
an air vent which UK
would forcibly
cause the air in the
building to
circulate.
 this table is for 4,551,00 Mezbaha 2 4,551,00
deboning,chopping, teknolojil
and slicing all eri, UK
butcher work need
to have this to meat
the perfect cut.

Butcher
cutting table

3.3.3 OFFICE EQUPMENT

The following are the equipment regularly used in office by the business and
these will be purchased locally;

PARTICULARS DESCRIPTION/ UNIT QTY TOTAL

USAGE COST COST

Use for office 20,350 5 101,758

Computer set tasks such as
email, data
storage, banking,
and inventory
management.

. An output device 9,848 1 49,240

printer that prints paper
 documents

Is a system used 24,000 2 48,000

to cool down the
temperature in an
inside space
aircon

Modem is a 1500 1 150

network device
that modulates
digital information
Mode m/telephone
and Telephone is
utilized for basic
office
communication,
customer service
assistance, and
emergency calls
and appointments

SUPPLY DESCRIPTION UNIT QTY TOTAL

COST COST
A device that performs 400 2 800
arithmetic operations on
Digital numbers
calculator
 paper that is suitable for 165 10 1,650
electronic printing and use in reams
office machines Bond paper is
a durable, including copiers
and network and desktop
bondpaper

An instrument used for writing 7 20 140

ballpe ns

Usage to keep track of all 57 15 855

Record book business transactions and
other relevant inputs

RECEIPT PAPER Issued by the seller to the 20 2o 400

buyer as written evidence on pads
sale of services

Used to put out a small fire by 1500 2 3OOO

directing onto it.
Fire extinguisher

Table 18
Furniture and Fixtures

Particular Description/Usage Qty Unit Estimated Total

. Cost Life Cost
A piece of furniture 5 2,180 5 10,900
Office table having a flat work table
that is usually used for
a computer and filing.

Office chair A kind of office chair 5 800 5 4000

that is designed to be
used at a desk.

A seat that is used for 1 8,202 5 8,202

Waiting chair client accommodations
in order to provide
greater comfort to
inquirers

A piece of office 2 5700 5 11,400

furniture for storing
paper documents in file
Office cabinet folders.
 3.3.5. Utilities

3.3.5.1 Electric Supply

The electricity supply will be provided by South Cotabato Electric

Cooperative (SOCOTECO II).

3.3.5.2 Water Supply

The water supply would be provided by NAWASA.

3.4 Waste Disposal

 Cleanliness and orderliness shall be observed all over the place, as required

by the City Environment of Natural Resources Office (CENRO). Trash cans

shall be placed all over the area and the segregation of biodegradable and

non-biodegradable waste will be strictly implemented. Waste materials are to

be collected by the garbage collector of the city government.

 For excess waste disposal or waste water treatment facilities and the disposal

of the waste water and solid waste shall comply with the effluent standards

and environment standards set by the Bureau of agriculture and fisheries

standard.

3.4.1 Ventilation
 In Slaughter house, the sanitation is very strict due to implementing rules of

the DA, The proposed business envision to create ventilation to prevent the

cause of bacteria and also the odor. Ventilation ducts should be built into walls

or ceilings or kept clear of bearers to make cleaning easier. Inlets that are

insect-proof should be placed away from dusty areas. All metal fittings that are

prone to rust should be painted. Screens should be detachable for easy

cleaning.

3.5 Policies

The business applies safety first, considering the risk of an employee/customer

especially entering the vicinity. That’s why there are some rules that should be

understand and followed to avoid accident and injuries.

3.5.1 Management Policy

These are the policies by the management to ensure good internal

control, efficiency and safety in the workplace.

3.5.1.1. Employees are required to turn off all the machines and

equipment after using.

3.5.1.2. Follow the safety procedures on how to properly use the

equipment to avoid accidents.

3.5.1.3. Observe cleanliness in the working area.

3.5.1.4. Employees must wear their prescribed uniform.

3.5.1.5. Employees are mandatory to work overtime if necessary.

 CHAPTER IV

MANGEMENT AND ORGANIZATION ASPECT

This chapter discusses the entire organizational arrangement of duties and

responsibilities, flow of authority and manpower level requirement. This contains the

organizational chart and the qualifications of the people Involve in the formation of the

business organization. It must be set up to aim at finest effectiveness. To attain this,

the management must be able to plan all activities, for the company to become

dynamic and competitive.

4.1 Form of Business Organization

The proposed business will be run as a partnership. A partnership is a legally

binding agreement between two or more people to run a business together and share

profits. This type of business will be absorbed by the proposed business because it is

preferred for production businesses because it is critical to avoid any disagreements,

confusion, or changes that may arise during the business' tenure. It will also increase

the amount of knowledge, expertise, and resources available to improve products

and reach a larger audience.

4.2 Organizational Structure

The proposed business will use the hierarchies since the researcher believes it

has a big impact in the organization. An organizational structure is a system that

outlines how certain activities are directed in order to achieve the goals of an

organization. This suggested that employees will have direct supervision who they

can report to (Bragg, 2020).

This will help the proposed business to create organizational structure.

BUSINESS OWNER
(HEAD OFFICE)

QUALITY CONTROL
INSPECTOR/VETIRE
NARIAN

HUMAN
ASSISTANT
RESOURCES ACCCONTANT
HIRING SUPERVISION
OFFICER
 BUTCHERS MACHINE
PACKERS
INSTALLATOR

DELIVERY
SECURITY GUARD
MAN

Figure 11. Organizational Structure

As shown above, the company shall be headed by the Business Owner who

has control over a company and has the authority to dictate its operations and

activities. under the business owner is the quality control lead by the meat inspector

and veterinarian who shall inspect and test the quality of meat to be slaughtered and

for consumption. The other departments which the office of accountant who is

responsible for collecting, recording, analysing, and presenting financial data. The

office of assistant supervision who lead the entire flow of production in case the

business owner is not around in the building his/her responsibilities is to check the

operations from raw materials up to finish product, then the office of HR responsible

for keeping all transactions record and hiring people in the business. Other

departments is the personnel who work in the production of frozen meat, we have
machine installator incase of machine interruptions during the flow of production also

they are the one to assist the machines, and follow by butchers responsible for the

right handling of processing the size of meat, packers who will assign in the

packaging department responsible for wrapping, freezing. The department of delivery

include loading the products to Van and the entire transportation of orders, lastly

since we don’t have electric fence we need security to ensure the slaughterhouse is

aware on possible of unwanted persons.

4.3 Personnel Qualifications

Before the commencement of business operations, it is very important to consider

the selection of its human resources. Hiring the best employees plays a great role to

the success of the business. Thus, their specific functions, duties and responsibilities

should be properly clear. The qualified personnel must know their perspective

function in the organization. Below are the qualifications and descriptions of the

personnel needed in the proposed business.

Quality Inspector

 Must be a graduate of BS food microbiology. Age ranges to 25-45 years

old.

 Inspect products to ensure that they meet quality standards. Monitor

production operations to ensure conformance to company specifications.

 Have knowledge of meat processing standard and regulations.

 Communicating with regulatory officials, compliance auditors, safety

inspectors and other external facility personnel

 Grading all types of cuts meats

Accountant

 Must be a Certified Public Accountant (25-35 years old) with Master’s

Degree in Accounting or Business Administration.

 Relevant years of working or internship experience and other relevant

trainings and certification.

 Strong analytical skills with attention to details, excellent computer skills

and strong communication and interpersonal skills.

Hiring Officer

 Must be a graduate of BSBA Major in Human Resources and have

excellent communication skills, including the ability to listen and effectively

verbalise ideas.

 A solid understanding of the key principles of employment law. Age ranges

from 30-45 years old.

 The ability to remain calm in stressful situations including during

disciplinary hearings or staff conflicts.

Assistant Supervision

 Advanced skills in MS Office, organizational and leadership abilities,

communication and interpersonal skills

 Self-motivated with a results-driven approach, Ability to multi-task and can

work with minimal supervision.

 Set workflow, target and conduct monitoring of outputs and able to educate

production members and appraise their performance

  Implement set policies and procedure of production, monitors Daily Output

Per Process in Production

 Prepare and make Daily Production Reports and establish line operation

Butchers

 At least High School graduate or with NC II in Butchery (30 to 45 years old)

 With at least 2 years’ experience

 Skilled in operating band saw and meat-cutting machines

Machine Operator

 Technical / Vocational course/ Eng. graduate or undergrad .

 Knowledge and experience in using Machine.

 Assisting in the installation of new manufacturing equipment

 Monitor and analyze electrical systems.

 Test devices for improvement, safety and quality control

 Update older electrical systems for changes, cost reductions,

improvements, safety and quality control.

Packers

 Graduate of at least any 2-year / vocational course

 Must be 25 to 45 years old

 Preferably with experience in food handling (fruits, vegetables, meats and

grocery items)
  Physically fit, honest and trustworthy, able to work during weekends,

holidays and early shift

Deliveryman

 Must graduate high school at least (30 to 50 years old)

 Must have a professional/ non-professional driver license

 5-10 years’ experience as a driver

 Honest, diligent personality

 Have a driver’s license

Securities

 Must be registered as a security officer (30-50 years old) with 2 years of

experience as a Security Guard or similar role.

 Good understanding of legal guidelines for area security and public safety.

Outstanding surveillance and observation skills

4.4 Personnel Duties and Responsibilities

Personnel are the one who perform the operation of the business. They must be

knowledgeable of their respective duties and they must follow the standard operating

procedures in order to achieve a smooth business operation and control malpractice

within the organization.

The table on the below are the duties and responsibilities of every employee to be
hire in PRESSM COW MEAT

Quality Inspector
  Perform regular quality assessments on all incoming materials from

vendors and outgoing products for shipping.

 Reject all products and materials that fail to meet quality expectations.

 Measure product dimensions, examine functionality, and compare the

final product to the specifications.

 Recommend improvements to the production process to ensure quality

control.

 Document inspection outcomes by completing detailed reports and

performance records.

 Teach the production team about quality control concerns to improve

product excellence.

 Supervise the production process.

 Resolve quality-related issues in a timely manner.

Accountant

 Assisting management in the decision-making process by preparing

budgets and financial forecasts.

 Keeping informed about current legislation relating to finance and

accounting.

 Compiling, analysing, and reporting financial data.

Hiring Officer

 Managing company staff, including coordinating and supporting the

recruitment process.
  On boarding newcomers to the company.

 Developing adequate induction and training.

Assistant Supervisor

 Reporting to the Supervisor or other senior managers as required.

 Liaising between the Supervisor and other employees.

 Hiring and training new employees.

 Developing training materials and conducting training sessions and

workshops.

 Establishing business knowledge and awareness of shared company

goals.

 Monitoring both individual and team job performance metrics.

 Providing staff with technical guidance and assistance.

 Relaying productivity concerns to the Supervisor.

 Preparing job descriptions and work schedules.

 Assisting with other administrative tasks, when required.

PACKER

 Weighing packages and labeling them appropriately

 Inspecting packages to ensure they are not damaged

 Inspecting shipping containers to ensure they meet shipping

regulations

 Assembling daily orders by shipping location

 Keeping records of packages including delivery notes, invoices.

  Filling out packaging and order forms with the relevant shipping

information

BUTCHER

 Cutting, grinding and preparing meats for sale.

 Weighing, packaging, pricing, and displaying products.

 Performing quality inspections on meats and other products.

 Adhering to food safety and sanitation controls.

MACHINE OPERATOR

 Assist in the installation, maintenance, and repair of machinery.

 Operate tools in order to aid in the manufacturing process.

 Perform periodic checks on equipment and solve problems as detected.

 Work with others in order to ensure that equipment is in proper working

order.

 Observe and follow company safety rules and regulations.

DELIVERY MAN

 Distributing various packages to specified locations within a given time frame.

 Planning daily travel routes based on locations and time frames.

 Carefully loading and unloading all packages.

 Accepting and recording payment for delivered packages.

 Investigating any discrepancies with the delivered packages.

 Obtaining customers' signatures on delivery papers upon completion of each

delivery.
  Cleaning, washing, refueling, and maintaining the company vehicle.

 Promptly reporting any road accidents and traffic violations to the company.

SECURITY GUARD

 Ensure that guests sign in upon arrival and exit.

 Make guests aware of rules that must be adhered to.

 Remove trespassers or unwanted individuals from the property.

 Contact the relevant authorities if a crime is committed or an accident occurs.

 Report to supervisors on a regular basis.

 Record any suspicious activities to the supervisor.

4.5 Personnel Salary Structure

Salary is the monetary compensation that employees receive in exchange for the

services they provide to the company. Employees are contracted to work for a

specific hour per day and are expected to work the number of hours necessary to

complete the job satisfactorily.

The table on the following page showed how much each employee would be paid

for their services. Salaries may differ depending on the position.

HDMF
Monthly SSS PHIC
Position Contributi Net Pay
Salary Contribution Contribution
on
Quality
Inspector 30,500.00 2,592.50 1,067.50 610.00 26,230

Accountant 25,500.00 2,167.50 892.50 510.00 21,930

Hiring Officer 25,500.00 2,167.50 892.50 510.00 21,930

Assistant
Supervisor 25,500.00 2,167.50 892.50 510.00 21,930
 Delivery Man 13,500.00 1,147.50 472.50 270.00 11,610

Security Guard 16,000.00 1,360.00 560.00 320.00 13,760

Machine
Operator 13,500.00 1,147.50 472.50 270.00 11,610

Butcher 13,500.00 1,147.50 472.50 270.00 11,610

Packer 13,500.00 1,147.50 472.50 270.00 11,610

4.6 Pre-operating Activities

Prior to the official start of the business, pre-operational activities will take place.

These activities are critical for the successful launch of a business into the market.

Making a project feasibility study, selecting a location, obtaining permits and licenses,

acquiring supplies and equipment, hiring and orienting personnel, promotional

activities, and finally starting a business are all part of the activities.

4.6.1 Project Feasibility Study

The business owner is required to conduct a feasibility study to determine

whether the business is feasible and to determine the market viability of the

proposed business. This ensures that the money does not go to waste and

that the business prospers in the future. This research will provide preliminary

information about the industry and the market in which the business will

operate. This activity will take two months to complete because it requires a

thorough study and analysis of the various aspects of the business, including

marketing, technical, management and organizational, financial, and

socioeconomic aspects.
4.6.2 Selection of Location

The location is one of the most important factors to consider when starting

a business. Choosing the right location is critical because it determines the

viability of the company's existence in the community.

Since the business owner has a own a 1km lot to raise the proposed

business for long term use it will give probability success of establishing the

proposed building of the business.

4.6.3 Permit and Licenses

The proposed project will secure the necessary permits and licenses for the

legalization of the business operation. As a result, the prospect owner must

ensure the following:

The proposed project will secure the necessary permits and licenses for the

legalization of the business operation. As a result, the prospect owner must

ensure the following:

4.6.3.1 Business permit

All business owners in the Municipality of Polomolok, must obtain a

business permit. The revised business permit application process in the

city as required in the City Mayor's Office- Business Permits and

Licenses Division is outlined below.

Step 1. Secure forms from City Mayor’s Office (CMO) – Business

Permit and Licenses Division (BPLD)/ BPLD lounge

Step 2. Submit to BPLD the duly filled-up forms:

 1. Application form

2. Barangay Clearance

3. Community tax certificate

4. SEC

5. BIR Annual Registration

6. Pag-ibig

Step 3. Proceed to City Treasure’s Office to pay appropriate dues.

Step 4. Proceed to Bureau of Fire Protection (BFP) to get fire safety

inspection certificate (FSIC)

Step 5. Return to CMO- BPLD to submit all documents for preparations

of business permit.

4.6.3.2 Building Permit

Step 1. Building Plans package with signatures of civil engineer,

electrical, mechanical, plumbing and sanitary.

Step 2.Office of the building official. Submit 6 copies of the following:

1. Building Plans approved by city planning

2. Zoning/City planning clearance

3. Other requirements must be attached to the application of

building permits.

4. Estimated cost of charges for approved building permit.

 In addition to the abovementioned, the following requirements must also

be complied.

1. SSS Clearance

2. Phil health Clearance

3. Pag-ibig Clearance

4. CENRO Clearance and official receipt

4.6.4 Construction and Interior Designing

Following the feasibility study project, the selection and preparation of the

target location, and the acquisition of business permits, licenses, and

insurance, the proposed project will construct the building and create an

interior based on the design and layout provided in the Lay-out section.

4.6.5 Acquisition of Equipment, Machineries, Supplies and Furniture and

Fixtures

Following the interior design, the proposed project will acquire property,

equipment, machines, supplies, and furniture and fixtures required for its

operation from suppliers at the lowest possible cost while maintaining

acceptable quality standards.

4.6.6 Hiring of Employees

 The proposed project will hire personnel based on the qualifications and

standards outlined in the section on personnel qualifications.

The hiring requirements may include but not limited to the following:

1. Completely filled-up resume or bio-data

2. Photocopy of authenticated birth certificate

3. High school diploma/ college diploma and transcript of record

4. Purok, barangay and police clearance.

To ensure that the entity hired a good investment, the partnership

will conduct interviews based on the information indicated in the

applicant's resume or bio-data, including their previous job experiences,

if any.

4.6.7 Compliance of Other Permits and Licenses

Other permits and licenses will be complied provided that the construction

progress is at 90%.

4.6.8 Start of Business Operation

When everything is in order and all of the requirements has been

meet, the business can begin operations.

4.7. Time Table

Activities 1 2 3 4 5 6 7 8 9 10 11 12

Project Feasibility Study

Selecting Location

Negotiation of Building

Construction

Business permits and

licenses’

Acquisition of Supplies

and equipment

Hiring and orientation of

personnel

Promotional Activities

Start the operation

The first 2 months will be conducting feasibility study and selecting for location.

The third months up to 11 months will be undertaken for construction of building

Complying all the important documents like permits and licenses will be undertaken in

7 months then acquiring the important supplies and equipment for production and

office uses will the undertaken in 8 months. The hiring and orientation of the selected

employees will be undertaken in 9 months, while the promotional activities which

promotes the product before the company will start opening will be in 10 months.

Lastly when everything has been done pre-operating activities, the business will be

ready in 12 months.
 CHAPTER V

FINANCIAL ASPECT

This chapter shows and discusses the financial forecast for the proposed

business including the financial assumptions, the investment costs, the financial

statements and the financial analysis. Moreover, this chapter also summarizes the

source and uses of funds.

5.1 Investment Cost

The total capitalization of proposed business will be Php21,133,278.36. The

partners will contribute the cash investment to the entity.

Schedule
Particulars Cost
No.
Property, Plant & Equipment    
Machinery & Equipment 13 3,520,964.20
Furniture & Fixture 14 84,410.00
Building   1,500,000.00
Working Capital    
 Inventory 19 13,833,333.33
Pre-Operating Expenses 20 2,194,570.82
Total   21,133,278.36

The investment will be used in the acquisition of machineries and equipment,

furniture and fixtures, building, land and supplies. This will also be used in purchasing

other expenditures necessary for the establishment of the proposed business

especially during the pre-operating years. Presented on the above is the table of

investment cost of the proposed business.

5.2 Initial Capital Requirement

The initial capital requirement of the business will be provided in the form of

partnership. The partner will provide and invest the amount to sustain the business.

5.3 Sources of Financing

The total investment will be acquired from the personal assets of the

prospective partners who will invest a total amount of Php21,133,278.36. It is

assumed by the researcher that the prospective owner have the capacity to provide

the investment need thus, no borrowings will be required.

5.4 Financial Forecast

This section discusses the financial assumptions, the net investment cost, the

financial statements, and financial analysis.

5.4.1 Financial Assumptions

This section states the financial assumptions to be implemented by the

proposed business regarding financial related issues of the entity. These are
based on the data gathered by the researchers from interviews in their

competitors in the business industry.

5.4.1.1 Revenue
This portion of the study states the financial assumption with

regards to the computation of the revenues for the proposed business.

1. Sales are based on the total maximum annual capacity of its

machines distributed to the percentage of average annual

consumption of the products multiplied by the selling price.

2. Selling price will increase by 15% annually starting from its second

operation.

3. All sales transaction will be on cash basis.

4. The proposed business will be operating at its practical capacity of

80%.

5. Sales are VAT inclusive.

5.4.1.2 Expenses
This portion of the study states the financial assumption with

regards to the computation of the expenses for the proposed business.

1. All expenses are on cash basis other than depreciation expense.

2. Pre-operating cost will be expensed as incurred based on PAS 38

par.69.

3. Purchases of cleaning materials and office supplies will increased by

5% starting year 2 and will be expensed outright.

4. Utilities will be expensed outright each year and will increase by 5%

starting second year of operation.

5. The researcher used straight line depreciation method. The

depreciation is constant from first year to fifth year.

6. Business permits and licenses will be constant every year except for

community tax.

7. 13th month pay will be provided to the personnel.

8. Payment of SSS, Philhealth, and Pag-ibig will be made every first

week of the following month.

9. Income tax of employee for the month will be withheld.

10. Repairs and Maintenance will be 5% of the cost of the asset during

the first year and will be increased by 5% in the next years.

5.4.1.3 Others
This portion of the study states the financial assumptions that

may affect the other sections of the projected financial statements of the

proposed business. Philippine Peso will be used as the currency in

preparing the financial statements of the proposed business.

1. The proposed business will be in a form of partnership.

2. The partners will invest Php21,133,278.36 in order to start the

business.

3. Ending inventory will be 10% of the total goods available for sale for

every year.

4. The owners is allowed to withdraw Php4,000,000 each year starting

the first year of operation.

 5. Income taxes will be paid every first month of the succeeding

quarter.

5.5 Financial Statements

This section provides information about the financial statements of

the proposed business. Financial statements provide information that is

useful to a wide range of users. These are Balance Sheet, Income

Statement, Cash Flows and Changes in Partners Equity. In line with this, a

summary of these statements are presented in the next page and its

detailed information are shown in exhibit section.

5.5.1 Projected Statement of Financial Position

This section pictures out the financial condition of the firm as a

whole. It shows the control asset, owned liability and the owner’s equity

of the business on given dates. The purpose of the balance sheet is to

show the financial pattern of the business. The researcher prepared a 5

year period of the financial position and condition of the business

showing assets, liabilities and owner’s equity at the year end.

5.5.2 Projected Statement of Financial Performance

This section shows the financial performance of the proposed

business. Statement of Financial Performance provides information

about the summarized earned revenue and expenses incurred in a

particular period of time to measure the profitability of the business.

 The researcher prepares a five (5) year periods of financial

performance of the proposed business showing the comparison and the

expenses incurred.

5.5.3 Projected Statement of Cash Flow

This section pictures out the cash flow activities, particularly

operating, investing and financing. Statement of Cash Flows shows the

inflows and outflows of cash during the operation. It also shows the

liquidity of the firm in a given period of time. Aside from that it also

assesses the ability of the business to generate cash in order to pay its

obligations.

5.5.4 Projected Statement of Changes in Equity

This explains the changes in partners’ capital which results from

earnings and losses. It also provides on how the capital or fund has

been used.

5.6 Financial Analysis

The researcher used ratio analysis showing the liquidity ratio, the profitability

ratio, the solvency or stability ratio and period, discounted cash

 Projected Statement of Financial Position
As of December 31, 20A, 20B,20C, 20D, 20E

Sched
Current Assets: No. Year 1 Year 2 Year 3 Year 4 Year 5
Current Assets:
Cash ₱ 38,765,478.84 ₱ 68,683,484.07 ₱ 104,492,677.73 ₱ 147,175,252.49 ₱ 197,762,909.98
Inventory 12 5,533,333.33 6,363,333.33 7,317,833.33 8,415,508.33 9,677,834.58
Total Current Assets 44,298,812.18 75,046,817.41 111,810,511.07 155,590,760.82 207,440,744.56

NonCurrent Assets
Building ₱ 1,500,000.00 ₱ 1,500,000.00 ₱ 1,500,000.00 ₱ 1,500,000.00 ₱ 1,500,000.00
Machinery & Equipments 13 3,520,964.20 3,520,964.20 3,520,964.20 3,520,964.20 3,520,964.20
Furniture and Fixtures 14 84,410.00 84,410.00 84,410.00 84,410.00 84,410.00
Accumulated Depreciation 15 329,145.65 658,291.31 987,436.96 1,316,582.61 1,645,728.27
Total NonCurrent Assets 4,776,228.55 4,447,082.89 4,117,937.24 3,788,791.59 3,459,645.93

Total Assets ₱ 49,075,040.72 ₱ 79,493,900.30 ₱ 115,928,448.31 ₱ 159,379,552.41 ₱ 210,900,390.49

Current Liabilies
SSS Payable 16 ₱ 26,650.00 ₱ 26,650.00 ₱ 26,650.00 ₱ 26,650.00 ₱ 26,650.00
Philhealth Payable 16 14,350.00 14,350.00 14,350.00 14,350.00 14,350.00
Pag-ibig Payable 16 8,200.00 8,200.00 8,200.00 8,200.00 8,200.00
Vat Payable 17 355,819.80 507,566.07 584,225.24 672,387.46 773,778.39
Income Tax Payable 18 3,051,942.83 3,611,521.56 4,255,104.23 4,995,294.79 5,846,587.93
Total Current Liabilities 3,456,962.63 4,168,287.63 4,888,529.47 5,716,882.25 6,669,566.32

Owner's Capital 45,618,078.09 75,325,612.67 111,039,918.84 153,662,670.17 204,230,824.17

Total Liabilities and Equity ₱ 49,075,040.72 ₱ 79,493,900.30 ₱ 115,928,448.31 ₱ 159,379,552.41 ₱ 210,900,390.49
 Projected Statement of Financial Performance
For the Year Ended December 20A, 20B, 20C, 20D and 20E

Particulars Sched No. Year 1 Year 2 Year 3 Year 4 Year 5

Gross Sales 1 ₱ 99,600,000.00 ₱ 114,540,000.00 ₱131,721,000.00 ₱ 151,479,150.00 ₱ 174,201,022.50
Cost of Goods Sold 2 ₱ 49,800,000.00 ₱ 57,270,000.00 ₱ 65,860,500.00 ₱ 75,739,575.00 ₱ 87,100,511.25
Gross Profit ₱ 49,800,000.00 ₱ 57,270,000.00 ₱ 65,860,500.00 ₱ 75,739,575.00 ₱ 87,100,511.25
Less: Operating Expenses
Salaries Expense 3 ₱ 7,468,500.00 ₱ 7,468,500.00 ₱ 7,468,500.00 ₱ 7,468,500.00 ₱ 7,468,500.00
SSS Expense 4 209,100.00 209,100.00 209,100.00 209,100.00 209,100.00
PhilHealth Expense 4 86,100.00 86,100.00 86,100.00 86,100.00 86,100.00
PAG-IBIG Expense 4 49,200.00 49,200.00 49,200.00 49,200.00 49,200.00
Supplies Expense 5 6,705.00 7,040.25 7,392.26 7,761.88 8,149.97
Depreciation Expense 6 329,145.65 329,145.65 329,145.65 329,145.65 329,145.65
Repairs and Maintenance 7 82,299.46 86,414.43 90,735.15 95,271.91 100,035.51
Advertising Expense 8 90,000.00 94,500.00 99,225.00 104,186.25 109,395.56
Rent Expense 9 600,000.00 600,000.00 600,000.00 600,000.00 600,000.00
Business Permits and Licenses 10 186,378.84 186,378.84 186,378.84 186,378.84 186,378.84
Total Operating Expenses ₱ 9,107,428.95 ₱ 9,116,379.17 ₱ 9,125,776.91 ₱ 9,135,644.53 ₱ 9,146,005.53
Net Income Before Tax 40,692,571.05 48,153,620.83 56,734,723.09 66,603,930.47 77,954,505.72
Less: Tax (30%) 11 12,207,771.31 14,446,086.25 17,020,416.93 19,981,179.14 23,386,351.72
Net Income After Tax ₱ 28,484,799.73 ₱ 33,707,534.58 ₱ 39,714,306.16 ₱ 46,622,751.33 ₱ 54,568,154.00
 Projected Statement of Cash Flow
For the Year Ended December 31, 20A, 20B, 20C, 20D, 20E

Exhibit Year 1 Year 2 Year 3 Year 4 Year 5

Net income 1 ₱ 28,484,799.73 ₱ 33,707,534.58 ₱ 39,714,306.16 ₱ 46,622,751.33 ₱ 54,568,154.00
Add: Depreciaton Expense 1 329,145.65 329,145.65 329,145.65 329,145.65 329,145.65
Cash Income ₱ 28,813,945.39 ₱ 34,036,680.23 ₱ 40,043,451.82 ₱ 46,951,896.98 ₱ 54,897,299.66

Operating Activities: (Increase)/Decrease

Increase in Inventory 2 ₱ (5,533,333.33) ₱ (830,000.00) ₱ (954,500.00) ₱ (1,097,675.00) ₱ (1,262,326.25)
Increase in SSS Payable 2 26,650.00
Increase in PhilHealth Payable 2 14,350.00
Increase in PAG-IBIG Payable 2 8,200.00
Increase in Vat Payable 2 355,819.80 151,746.26 76,659.17 88,162.22 101,390.93
Increase in Income Tax Payable 3,051,942.83 559,578.73 643,582.67 740,190.55 851,293.14
Cash Generated From Operations (2,076,370.70) (118,675.00) (234,258.16) (269,322.23) (309,642.17)
Net cash Provided by Operating Activities 26,737,574.69 33,918,005.23 39,809,193.66 46,682,574.76 54,587,657.48

Investing Activities: (Increase)/Decrease

Acquisition of Machinery and Equipment 2 (3,520,964.20) - - - -
Acquisition of Furnitures and Fixtures 2 (84,410.00) - - - -
Acquisition of Building (1,500,000.00)
Net Cash Provided by Investing Activities (5,105,374.20) - - - -

Financing Activities: Increase/(Decrease)

Owner's Investment 3 21,133,278.36
Ownner's Withdrawal 3 (4,000,000.00) (4,000,000.00) (4,000,000.00) (4,000,000.00) (4,000,000.00)
Net cash Provided by Financing Activities 17,133,278.36 (4,000,000.00) (4,000,000.00) (4,000,000.00) (4,000,000.00)

Net increase/decrease in cash ₱ 38,765,478.84 ₱ 29,918,005.23 ₱ 35,809,193.66 ₱ 42,682,574.76 ₱ 50,587,657.48

Add: Cash, Beginning - 38,765,478.84 68,683,484.07 104,492,677.73 147,175,252.49
Cash, Ending ₱ 38,765,478.84 ₱ 68,683,484.07 ₱ 104,492,677.73 ₱ 147,175,252.49 ₱ 197,762,909.98
 Projected Statement of Changes in Partner's Equity
As of December 20A, 20B, 20C, 20C, 20D and 20E

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Beg. Capital ₱ 10,566,639.18 ₱ 22,809,039.05 ₱ 37,662,806.34 ₱ 55,519,959.42 ₱ 76,831,335.08
Add: Net Income/(Loss) 14,242,399.87 16,853,767.29 19,857,153.08 23,311,375.67 27,284,077.00
Total ₱ 24,809,039.05 ₱ 39,662,806.34 ₱ 57,519,959.42 ₱ 78,831,335.08 ₱ 104,115,412.08
Less: Withdrawal 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00
Ending Balance ₱ 22,809,039.05 ₱ 37,662,806.34 ₱ 55,519,959.42 ₱ 76,831,335.08 ₱ 102,115,412.08

Beg. Capital ₱ 10,566,639.18 ₱ 22,809,039.05 ₱ 37,662,806.34 ₱ 55,519,959.42 ₱ 76,831,335.08

Add: Net Income/(Loss) ₱ 14,242,399.87 ₱ 16,853,767.29 ₱ 19,857,153.08 ₱ 23,311,375.67 ₱ 27,284,077.00
Total ₱ 24,809,039.05 ₱ 39,662,806.34 ₱ 57,519,959.42 ₱ 78,831,335.08 ₱ 104,115,412.08
Less: Withdrawal 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00
Ending Balance ₱ 22,809,039.05 ₱ 37,662,806.34 ₱ 55,519,959.42 ₱ 76,831,335.08 ₱ 102,115,412.08
flow adequacy and investment analysis using the payback period and internal rate of

return methods in analyzing the financial performance, position and cash flows of the

proposed business for five years of operation.

5.6.1. Ratio Analysis

This is a method of financial evaluation whereby the relationship between

the items found in the Statement of financial Performance, Statement of

financial Position, and Statement of Comprehensive Income or both are being

established.

5.6.1.1 Current Ratio

Current ratio indicates the extent to which current liabilities are

covered by the current assets expected to be converted to cash in the

near future.

A summary of the current ratio is presented below.

Year Current Assets Current Liability CR

20A 44,298,812.18 3,456,962.63 12.81
20B 75,046,817.41 4,168,287.63 18.00
20C 111,810,511.07 4,888,529.47 22.87
20D 155,590,760.82 5,716,882.25 27.22
20E 207,440,744.56 6,669,566.32 31.10

Current Ratio
Formula: Current ratio = current assets/current liabilities.

The figure shows that the proposed business has an increasing

current ratio which indicates that it has enough assets to pay its maturing
obligations for five years. It indicates that the said project business is

capable in paying back its short-term assets.

5.6.1.2 Debt to Equity Ratio

This is a measure of a company's financial leverage. It indicates

what proportion of equity and debt the company is using to finance its

assets.

Year Total Debt Equity DTE

20A 3,456,962.63 22,809,039.05 0.152
20B 4,168,287.63 37,662,806.34 0.111
20C 4,888,529.47 55,519,959.42 0.088
20D 5,716,882.25 76,831,335.08 0.074
20E 6,669,566.32 102,115,412.08 0.065

Debt to Equity Ratio

Formula: Total Liabilities/Owners’ Equity

The proposed business results a low debt to equity ratio. This is

because it does not engage in borrowing funds to be used in its

operations. The figure above expresses that it is dependent to the

owner’s equity that on debt financing or borrowings. It shows that the

business is described to be owned than owed.

5.6.1.3 Rate of Return on Total Assets

Return on Total Assets indicates how profitable a company is

relative to its total assets. It gives an idea on how efficient is the

management at using its assets to generate its earnings.

Table on the next page shows the rate of return on total assets

analysis of the proposed business.

 Year Net Income Total Assets ROA
20A 28,484,799.73 26,266,001.68 108%
20B 33,707,534.58 41,831,093.97 81%
20C 39,714,306.16 60,408,488.89 66%
20D 46,622,751.33 82,548,217.33 56%
20E 54,568,154.00 108,784,978.41 50%

Formula: Net Income/Total Assets

Return on Total Assets

The return on assets resulted to 108% for the first year which

means that the entity is efficient enough in using their assets in earning

profits. The second year of operation resulted to a 81% return. The third

year resulted to a return of 66%; 56% for the fourth year; and 50% for

the fifth year. If there is a decrease in ratio, it should not be taken

negatively. This is because of the idle cash that the business has

reserved for future expansion.

5.6.1.4 Rate of Return on Sales

Rate of Return on Sales is used to evaluate an entity’s operating

performance. It indicates how much profit an entity makes after paying

for variable cost of production such as wages, raw materials and others.

Year Net Income Gross Sales ROS

20A 28,484,799.73 99,600,000.00 29%
20B 33,707,534.58 114,540,000.00 29%
20C 39,714,306.16 131,721,000.00 30%
20D 46,622,751.33 151,479,150.00 31%
20E 54,568,154.00 174,201,022.50 31%
 Return on Sales
Formula: Return on sales = Operating Income/Sales

The return on sales for the first year is 29% and an increasing

percentage up to fifth year. The consistency of the ratios indicates that

the profitability of the business is improving as the years go by and an

excellent result because operating cost is relatively low.

5.6.1.5 Rate of Return on Investment

Rate of Return on Investment or the Return on Owner’s Equity

measures the percentage of profit generated by investment.

The table below shows that the proposed business will have a

high Rate of Return on Investment. This indicates that the partners

should expect a return on their investment.

Year Net Income Equity ROE

20A 28,484,799.73 22,809,039.05 125%
20B 33,707,534.58 37,662,806.34 89%
20C 39,714,306.16 55,519,959.42 72%
20D 46,622,751.33 76,831,335.08 61%
20E 54,568,154.00 102,115,412.08 53%

Return on Investment
Formula: Return on investment = profit/ average equity

The return of investment for the first year is 125%, 89% for the

second year; 72% for the third year; 61% for the fourth year; and 53%

for the fifth year. This implies that the entity generates more profit out of

the investment. The equity increased over the 5 years since the
 partners do not have excessive withdrawals. The profit is generated

since they contemplate on expanding business operations in the future.

5.6.1.6 Total Asset Turnover

The asset turnover ratio calculates the total revenue for every

amount of assets a company owns. It measures the ability of a

company to use its assets to efficiently generate sales.

Year Revenue Ave. Total Asset TAT

20A 99,600,000.00 26,266,001.68 3.79
20B 114,540,000.00 34,048,547.82 3.36
20C 131,721,000.00 51,119,791.43 2.58
20D 151,479,150.00 71,478,353.11 2.12
20E 174,201,022.50 95,666,597.87 1.82

Total Asset Turnover

Formula: Asset turnover = sales/ average total assets

It shows that the proposed business has high total asset turnover

indicating that it is efficiently generating more sales given its total

assets. The proposed business will have a very good performance.

5.7 Investment Analysis

An investment analysis is a look back at previous investment decisions and

the thought process of making the investment decision. This section involves

examining and assessing economic and market trends, earnings prospects, earnings

ratios and various other indicators and factors to determine suitable investment

strategies.

5.7.1 Payback Period

 This is the length of time required to recover the cost of an investment.

Shown below is the table summarizing the payback period of the proposed

business.

Year Annual Cash Flow Unrecovered Cost

Year 0   (₱21,133,278.36)
Year 1 ₱26,737,574.69 ₱5,604,296.33
Year 2 ₱33,918,005.23 ₱39,522,301.56
Year 3 ₱39,809,193.66 ₱79,331,495.22
Year 4 ₱46,682,574.76 ₱126,014,069.98
Year 5 ₱54,587,657.48 ₱180,601,727.46

The proposed business has a payback period .80 years. It indicates

that proposed business will recover its investment cost within 1 year and 10

months of operation. It expresses that proposed venture is desirable for

investment positions.
 SCHEDULES

Schedule 1
Sales

Sales in Qty.
Particulars Price Sales
(kilo)
Cow's Meat 398,400 250 ₱ 99,600,000
Total     99,600,000

Schedule 2
Cost of Goods Sold

Product Qty. Sold Cost Cost of Goods Sold

Cow's Meat 398,400 125.00 49,800,000.00
Total     49,800,000.00

Schedule 3
Salaries Expense
No. of Rate Monthly Annual 13th- Salaries
Position
EE per day Salary Salary month Expense
Quality Inspector 2 1173 30,500 732,000 61,000 793,000
Accountant 1 981 25,500 306,000 25,500 331,500
Hiring Officer 1 981 25,500 306,000 25,500 331,500
Assistant Supervisor 1 981 25,500 306,000 25,500 331,500
Delivery Man 5 519 13,500 810,000 67,500 877,500
Security Guard 2 615 16,000 384,000 32,000 416,000
Machine Operator 5 519 13,500 810,000 67,500 877,500
Butcher 10 519 13,500 1,620,000 135,000 1,755,000
Packer 10 519 13,500 1,620,000 135,000 1,755,000
Total 37 7,468,500

Schedule 4
SSS, Philhealth and HDMF Contribution
 EMPLOYER'S SHARE
No. of Monthly
Position
EE Salary SSS PHILHEALTH HDMF
Quality Inspector 2 30,500.00 62,220.00 25,620.00 14,640.00
Accountant 1 25,500.00 26,010.00 10,710.00 6,120.00
Hiring Officer 1 25,500.00 26,010.00 10,710.00 6,120.00
Assistant Supervisor 1 25,500.00 26,010.00 10,710.00 6,120.00
Delivery Man 5 13,500.00 68,850.00 28,350.00 16,200.00
Security Guard 2 16,000.00 32,640.00 13,440.00 7,680.00
Machine Operator 5 13,500.00 68,850.00 28,350.00 16,200.00
Butcher 10 13,500.00 137,700.00 56,700.00 32,400.00
Packer 10 13,500.00 137,700.00 56,700.00 32,400.00
Total 209,100.00 86,100.00 49,200.00

Schedule 5
Supplies Expense

Supplies Quantity Unit Cost Total

Digital Calculator 2 400.00 800.00
Bondpaper 10 165.00 1,650.00
Record Book 15 57.00 855.00
Receipt Paper 20 20.00 400.00
Fire Extinguisher 2 1,500.00 3,000.00
TOTAL SUPPLIES ₱ 6,705.00

Schedule 6
Depreciation Expense
 Useful Depreciation
Particulars Cost Qty Total Cost
Life Expense
Machinery & Equipment
Killing Box 324,000 1 324,000 10 32,400
Walk in freezer 141,659 2 283,318 10 28,332
Pre Skining Line 400,362 1 400,362 10 40,036
Meat Saw 31,915 20 638,309 10 63,831
Meat Crates 355.18 100 35,518 5 7,104
Digital weighing Scale 859.00 2 1,718 5 344
Refrigerated Van 833,000.00 2 1,666,000 25 66,640
Ventilator 10,641.00 1 10,641 15 709
Computer Set 20,350.00 5 101,750 15 6,783
Printer 9,848.00 1 9,848 10 985
Aircon 24,000.00 2 48,000 10 4,800
Modem Telephone 1,500.00 1 1,500 5 300
Total 3,520,964 252,264
Furniture and Fixtures
Office Table 2,180 5 10,900 5 2,180
Office Chair 800 5 4,000 5 800
Waiting Chair 8,202 5 41,010 5 8,202
Office Cabinet 5,700 5 28,500 5 5,700
Total 84,410 16,882
Building 1,500,000 1 1,500,000 25 60,000
TOTAL 3,605,374 329,146

Schedule 7
Repairs & Maintenance

Particulars Cost
Killing Box 324,000
Walk in freezer 283,318
Pre Skining Line 400,362
Meat Saw 638,309
Total 1,645,989
Multiply by 5%
Total 82,299.46

Schedule 8
Advertising Expense
 Particulars Cost per Month Annual Cost
Fliers 1,500 18,000
Tarpaulins 6,000 72,000
Total   90,000

Schedule 9
Rent Expense

Particulars Cost
Monthly Rental for Land 50,000
Multiply by No. of Months 12
Annual Rental 600,000

Schedule 10
Business Permits

Particulars Total
Business Location Clearance ₱ 75.00
Sanitary Health Clearance 60.00
Fire Safety Clearance 460.00
CENRO 500.00
SEC Registration 80,100.00
Brgy. Clearance 60.00
Garbage Collection Fee 500.00
Community Tax 496.00
Permit Fee 70,142.84
Certificate of Tax Payment 30.00
Documentary Stamp Tax 30.00
Recording Fee 500.00
Building Permit 17,850.00
DENR Permit 15,575.00
Total ₱ 186,378.84

Schedule 11
Income Tax Expense
Year 1 Year 2 Year 3 Year 4 Year 5
Income Before Tax ₱ 40,692,571.05 ₱ 48,153,620.83 ₱ 56,734,723.09 ₱ 66,603,930.47 ₱ 77,954,505.72
Multiply 30% 30% 30% 30% 30%
Income Tax ₱ 12,207,771.31 ₱ 14,446,086.25 ₱ 17,020,416.93 ₱ 19,981,179.14 ₱ 23,386,351.72

Schedule 12
Inventory
 Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Beginning Inventory ₱ - ₱ 5,533,333.33 ₱ 548,321.12 ₱ 578,419.54 ₱ 608,121.37
Net Purchases 55,333,333.33 58,100,000.00 72,630,012.21 83,576,663.79 96,170,224.46
Available for Use ₱ 55,333,333.33 ₱ 63,633,333.33 ₱ 73,178,333.33 ₱ 84,155,083.33 ₱ 96,778,345.83
Less: Ending Inventory 5,533,333.33 6,363,333.33 7,317,833.33 8,415,508.33 9,677,834.58
Cost of Goods Sold ₱ 49,800,000.00 ₱ 57,270,000.00 ₱ 65,860,500.00 ₱ 75,739,575.00 ₱ 87,100,511.25

Schedule 13
Machinery & Equipments

Particulars Cost Qty Total Cost

Machinery & Equipment
Killing Box 324,000 1 324,000
Walk in freezer 141,659 2 283,318
Pre Skining Line 400,362 1 400,362
Meat Saw 31,915 20 638,309
Meat Crates 355.18 100 35,518
Digital weighing Scale 859.00 2 1,718
Refrigerated Van 833,000.00 2 1,666,000
Ventilator 10,641.00 1 10,641
Computer Set 20,350.00 5 101,750
Printer 9,848.00 1 9,848
Aircon 24,000.00 2 48,000
Modem Telephone 1,500.00 1 1,500
Total     3,520,964

Schedule 14
Furniture & Fixtures

Particulars Cost Qty Total Cost

Furniture and Fixtures      

Office Table 2,180 5 10,900
Office Chair 800 5 4,000
Waiting Chair 8,202 5 41,010
Office Cabinet 5,700 5 28,500
Total     84,410

Schedule 15
Accumulated Depreciation
 Useful Accumulated
Particulars Cost Qty Total Cost
Life Depreciation
Machinery & Equipment
Killing Box 324,000 1 324,000 10 32,400
Walk in freezer 141,659 2 283,318 10 28,332
Pre Skining Line 400,362 1 400,362 10 40,036
Meat Saw 31,915 20 638,309 10 63,831
Meat Crates 355.18 100 35,518 5 7,104
Digital weighing Scale 859.00 2 1,718 5 344
Refrigerated Van 833,000.00 2 1,666,000 25 66,640
Ventilator 10,641.00 1 10,641 15 709
Computer Set 20,350.00 5 101,750 15 6,783
Printer 9,848.00 1 9,848 10 985
Aircon 24,000.00 2 48,000 10 4,800
Modem Telephone 1,500.00 1 1,500 5 300
Total 3,520,964 252,264
Furniture and Fixtures
Office Table 2,180 5 10,900 5 2,180
Office Chair 800 5 4,000 5 800
Waiting Chair 8,202 5 41,010 5 8,202
Office Cabinet 5,700 5 28,500 5 5,700
Total 84,410 16,882
Building 1,500,000 1 1,500,000 25 60,000
TOTAL 3,605,374
329,146

Schedule 16
SSS, Philhealth and HDMF Payable
EMPLOYER'S SHARE EMPLOYEE'S SHARE
No. of Monthly
Position
EE Salary SSS PHILHEALTH HDMF SSS PHILHEALTH HDMF

Quality Inspector 2 30,500.00 62,220.00 25,620.00 14,640.00 32,940.00 25,620.00 14,640.00

Accountant 1 25,500.00 26,010.00 10,710.00 6,120.00 13,770.00 10,710.00 6,120.00
Hiring Officer 1 25,500.00 26,010.00 10,710.00 6,120.00 13,770.00 10,710.00 6,120.00
Assistant Supervisor 1 25,500.00 26,010.00 10,710.00 6,120.00 13,770.00 10,710.00 6,120.00
Delivery Man 5 13,500.00 68,850.00 28,350.00 16,200.00 36,450.00 28,350.00 16,200.00
Security Guard 2 16,000.00 32,640.00 13,440.00 7,680.00 17,280.00 13,440.00 7,680.00
Machine Operator 5 13,500.00 68,850.00 28,350.00 16,200.00 36,450.00 28,350.00 16,200.00
Butcher 10 13,500.00 137,700.00 56,700.00 32,400.00 72,900.00 56,700.00 32,400.00
Packer 10 13,500.00 137,700.00 56,700.00 32,400.00 72,900.00 56,700.00 32,400.00
Total 209,100.00 86,100.00 49,200.00 110,700.00 86,100.00 49,200.00
X 1/12 X 1/12 X 1/12 X 1/12 X 1/12 X 1/12
Payable 17,425.00 7,175.00 4,100.00 9,225.00 7,175.00 4,100.00

Schedule 17
Vat Payable
Particular Year 1 Year 2 Yaer 3 Year 4 Year 5
Output Vat 10,671,428.57 12,272,142.86 14,112,964.29 16,229,908.93 18,664,395.27
Less: Creditable Input Tax
Purchases 5,335,714.29 6,136,071.43 7,056,482.14 8,114,954.46 9,332,197.63
OPEX
Supplies Expense 718.39 754.31 792.03 831.63 873.21
Repairs and Maintenance 35,265.61 35,265.61 35,265.61 35,265.61 35,265.61
Capital Assets
Building 300,000.00
Machinery and Equipments 704,192.84
Furniture & Fixture 16,882.00
VAT Payable 4,269,837.65 6,090,792.82 7,010,702.89 8,068,649.52 9,285,340.73

Year 1 Year 2 Year 3 Year 4 Year 5

VAT Payable 4,269,837.65 6,090,792.82 7,010,702.89 8,068,649.52 9,285,340.73
Add:VAT Payable Beg. - 355,819.80 507,566.07 584,225.24 672,387.46
Less:Remittance for the
year 3,914,017.84 5,939,046.56 6,934,043.71 7,980,487.30 9,183,949.79
VAT Payable for the year 355,819.80 507,566.07 584,225.24 672,387.46 773,778.39

Schedule 18
Income Tax Payable
Year 1 Year 2 Year 3 Year 4 Year 5
Income Before Tax ₱ 40,692,571.05 ₱ 48,153,620.83 ₱ 56,734,723.09 ₱ 66,603,930.47 ₱ 77,954,505.72
Multiply 30% 30% 30% 30% 30%
Income Tax ₱ 12,207,771.31 ₱ 14,446,086.25 ₱ 17,020,416.93 ₱ 19,981,179.14 ₱ 23,386,351.72
Remittance (1st - 3rd Quarter)9,155,828.49
₱ ₱ 10,834,564.69 ₱ 12,765,312.70 ₱ 14,985,884.36 ₱ 17,539,763.79
Income Tax Payable ₱ 3,051,942.83 ₱ 3,611,521.56 ₱ 4,255,104.23 ₱ 4,995,294.79 ₱ 5,846,587.93

Schedule 19
Working Capital- Inventory

Particulars Schedule No. Cost

 12 55,333,333.33
Total Purchases for
the Whole Year
Divided   12 months
Multiply   3 months

Total Inventory for 3 13,833,333.33

months  

Schedule 20
Pre-operating Expenses

Particulars Schedule No. Cost

Salaries Expense 3 7,468,500.00
SSS Expense 4 209,100.00
PhilHealth Expense 4 86,100.00
PAG-IBIG Expense 4 49,200.00
Supplies Expense 5 6,705.00
Repairs and Maintenance 7 82,299.46
Advertising Expense 8 90,000.00
Rent Expense 9 600,000.00
Business Permits and Licenses 10 186,378.84
Total   8,778,283.30
Divided by   12 months
Multiply   3 months
TOTAL   2,194,570.82
 CHAPTER VI

SOCIO-ECONOMIC ASPECT

The benefits of the proposed enterprise are discussed in this chapter, as well as how

it would impact society and the economy. It also demonstrates the operation's

relevance and significance in terms of social economics.

6.1 Effects of the Business to the Society 

Business is an important aspect of the advancement of society, which is described

as a group of individuals who engage in continuous social interaction and share a

common political authority and dominant cultural expectations. The importance of

business to society was mirrored in the influence it had on the government and the

home.

 Creating Job Opportunities- Starting a new business opens up new

work opportunities. Sham's Smoked Fish Production helps to reduce

the number of unemployed people in the community. They create jobs,

which help to improve the quality of life and overall standard of living in

communities.

 Effects in the Government- The contribution and impact of the

business on the government is significantly determined, i.e., tax money

contribution from profits generated through business operations, in

which this proposed business will provide funding for a variety of

 government services, and concisely, the business will be responsible

for adhering to tax regulations to contribute to public finances.

 It Fosters Creativity- It provides a platform for visionaries and

dreamers to realize their dreams. It assists newcomers in moving on

with their ideas in order to create new creations.

6.2 Effects of the Business to the Economy

Economy is a social domain that focuses on the activities, discourses, and

physical manifestations involved with the creation, use, and management of limited

resources.

 Employment- Workers are one of the most important business

requirements because they are the lifeblood of the firm, contributing

significantly to its growth and success. As a result, many persons will be

employed as a result of the proposed business's development. This

company not only tries to make a profit, but also to give employment

possibilities for the unemployed in the community. Fortunately, it raises

the living standards of people who will be hired.

Effects in Economic Trade- Export business has a significant impact

on the economy; exportation promotes economic exchange. Trading increases

the country's resources, resulting in faster growth and, eventually, improved

productivity and innovation. The company's major goal is to distribute items

outside of the country and increase the country's export rate.

Furthermore, the formation of new company prospects, business start-

up decisions, and the resource mobilization process are all impacted by

this industry. For aspiring entrepreneurs, the company will serve as a

wake-up call.

 Effects in Market Share- Company investments

can have an impact on the economy's short- and

long-term growth. When business investments

increase, it directly raises the present level of

Gross Domestic Product (GDP) due to the physical

capital of the proposed business that has been

generated and sold. As a result, the resources

collected through trade transactions help to offset

the cost of imports and strengthen the domestic

economy, contributing to the GDP.

 Projected Statement of Financial Position
As of December 31, 20A, 20B,20C, 20D, 20E

Sched
Current Assets: No. Year 1 Year 2 Year 3 Year 4 Year 5
Current Assets:
Cash ₱ 38,765,478.84 ₱ 68,683,484.07 ₱ 104,492,677.73 ₱ 147,175,252.49 ₱ 197,762,909.98
Inventory 12 5,533,333.33 6,363,333.33 7,317,833.33 8,415,508.33 9,677,834.58
Total Current Assets 44,298,812.18 75,046,817.41 111,810,511.07 155,590,760.82 207,440,744.56

NonCurrent Assets
Building ₱ 1,500,000.00 ₱ 1,500,000.00 ₱ 1,500,000.00 ₱ 1,500,000.00 ₱ 1,500,000.00
Machinery & Equipments 13 3,520,964.20 3,520,964.20 3,520,964.20 3,520,964.20 3,520,964.20
Furniture and Fixtures 14 84,410.00 84,410.00 84,410.00 84,410.00 84,410.00
Accumulated Depreciation 15 329,145.65 658,291.31 987,436.96 1,316,582.61 1,645,728.27
Total NonCurrent Assets 4,776,228.55 4,447,082.89 4,117,937.24 3,788,791.59 3,459,645.93

Total Assets ₱ 49,075,040.72 ₱ 79,493,900.30 ₱ 115,928,448.31 ₱ 159,379,552.41 ₱ 210,900,390.49

Current Liabilies
SSS Payable 16 ₱ 26,650.00 ₱ 26,650.00 ₱ 26,650.00 ₱ 26,650.00 ₱ 26,650.00
Philhealth Payable 16 14,350.00 14,350.00 14,350.00 14,350.00 14,350.00
Pag-ibig Payable 16 8,200.00 8,200.00 8,200.00 8,200.00 8,200.00
Vat Payable 17 355,819.80 507,566.07 584,225.24 672,387.46 773,778.39
Income Tax Payable 18 3,051,942.83 3,611,521.56 4,255,104.23 4,995,294.79 5,846,587.93
Total Current Liabilities 3,456,962.63 4,168,287.63 4,888,529.47 5,716,882.25 6,669,566.32

Owner's Capital 45,618,078.09 75,325,612.67 111,039,918.84 153,662,670.17 204,230,824.17

Total Liabilities and Equity ₱ 49,075,040.72 ₱ 79,493,900.30 ₱ 115,928,448.31 ₱ 159,379,552.41 ₱ 210,900,390.49
 Projected Statement of Changes in Partner's Equity
As of December 20A, 20B, 20C, 20C, 20D and 20E

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Beg. Capital ₱ 10,566,639.18 ₱ 22,809,039.05 ₱ 37,662,806.34 ₱ 55,519,959.42 ₱ 76,831,335.08
Add: Net Income/(Loss) 14,242,399.87 16,853,767.29 19,857,153.08 23,311,375.67 27,284,077.00
Total ₱ 24,809,039.05 ₱ 39,662,806.34 ₱ 57,519,959.42 ₱ 78,831,335.08 ₱ 104,115,412.08
Less: Withdrawal 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00
Ending Balance ₱ 22,809,039.05 ₱ 37,662,806.34 ₱ 55,519,959.42 ₱ 76,831,335.08 ₱ 102,115,412.08

Beg. Capital ₱ 10,566,639.18 ₱ 22,809,039.05 ₱ 37,662,806.34 ₱ 55,519,959.42 ₱ 76,831,335.08

Add: Net Income/(Loss) ₱ 14,242,399.87 ₱ 16,853,767.29 ₱ 19,857,153.08 ₱ 23,311,375.67 ₱ 27,284,077.00
Total ₱ 24,809,039.05 ₱ 39,662,806.34 ₱ 57,519,959.42 ₱ 78,831,335.08 ₱ 104,115,412.08
Less: Withdrawal 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00 2,000,000.00
Ending Balance ₱ 22,809,039.05 ₱ 37,662,806.34 ₱ 55,519,959.42 ₱ 76,831,335.08 ₱ 102,115,412.08
 Projected Statement of Financial Performance
For the Year Ended December 20A, 20B, 20C, 20D and 20E

Particulars Sched No. Year 1 Year 2 Year 3 Year 4 Year 5

Gross Sales 1 ₱ 99,600,000.00 ₱ 114,540,000.00 ₱131,721,000.00 ₱ 151,479,150.00 ₱ 174,201,022.50
Cost of Goods Sold 2 ₱ 49,800,000.00 ₱ 57,270,000.00 ₱ 65,860,500.00 ₱ 75,739,575.00 ₱ 87,100,511.25
Gross Profit ₱ 49,800,000.00 ₱ 57,270,000.00 ₱ 65,860,500.00 ₱ 75,739,575.00 ₱ 87,100,511.25
Less: Operating Expenses
Salaries Expense 3 ₱ 7,468,500.00 ₱ 7,468,500.00 ₱ 7,468,500.00 ₱ 7,468,500.00 ₱ 7,468,500.00
SSS Expense 4 209,100.00 209,100.00 209,100.00 209,100.00 209,100.00
PhilHealth Expense 4 86,100.00 86,100.00 86,100.00 86,100.00 86,100.00
PAG-IBIG Expense 4 49,200.00 49,200.00 49,200.00 49,200.00 49,200.00
Supplies Expense 5 6,705.00 7,040.25 7,392.26 7,761.88 8,149.97
Depreciation Expense 6 329,145.65 329,145.65 329,145.65 329,145.65 329,145.65
Repairs and Maintenance 7 82,299.46 86,414.43 90,735.15 95,271.91 100,035.51
Advertising Expense 8 90,000.00 94,500.00 99,225.00 104,186.25 109,395.56
Rent Expense 9 600,000.00 600,000.00 600,000.00 600,000.00 600,000.00
Business Permits and Licenses 10 186,378.84 186,378.84 186,378.84 186,378.84 186,378.84
Total Operating Expenses ₱ 9,107,428.95 ₱ 9,116,379.17 ₱ 9,125,776.91 ₱ 9,135,644.53 ₱ 9,146,005.53
Net Income Before Tax 40,692,571.05 48,153,620.83 56,734,723.09 66,603,930.47 77,954,505.72
Less: Tax (30%) 11 12,207,771.31 14,446,086.25 17,020,416.93 19,981,179.14 23,386,351.72
Net Income After Tax ₱ 28,484,799.73 ₱ 33,707,534.58 ₱ 39,714,306.16 ₱ 46,622,751.33 ₱ 54,568,154.00
 Projected Statement of Cash Flow
For the Year Ended December 31, 20A, 20B, 20C, 20D, 20E

Exhibit Year 1 Year 2 Year 3 Year 4 Year 5

Net income 1 ₱ 28,484,799.73 ₱ 33,707,534.58 ₱ 39,714,306.16 ₱ 46,622,751.33 ₱ 54,568,154.00
Add: Depreciaton Expense 1 329,145.65 329,145.65 329,145.65 329,145.65 329,145.65
Cash Income ₱ 28,813,945.39 ₱ 34,036,680.23 ₱ 40,043,451.82 ₱ 46,951,896.98 ₱ 54,897,299.66

Operating Activities: (Increase)/Decrease

Increase in Inventory 2 ₱ (5,533,333.33) ₱ (830,000.00) ₱ (954,500.00) ₱ (1,097,675.00) ₱ (1,262,326.25)
Increase in SSS Payable 2 26,650.00
Increase in PhilHealth Payable 2 14,350.00
Increase in PAG-IBIG Payable 2 8,200.00
Increase in Vat Payable 2 355,819.80 151,746.26 76,659.17 88,162.22 101,390.93
Increase in Income Tax Payable 3,051,942.83 559,578.73 643,582.67 740,190.55 851,293.14
Cash Generated From Operations (2,076,370.70) (118,675.00) (234,258.16) (269,322.23) (309,642.17)
Net cash Provided by Operating Activities 26,737,574.69 33,918,005.23 39,809,193.66 46,682,574.76 54,587,657.48

Investing Activities: (Increase)/Decrease

Acquisition of Machinery and Equipment 2 (3,520,964.20) - - - -
Acquisition of Furnitures and Fixtures 2 (84,410.00) - - - -
Acquisition of Building (1,500,000.00)
Net Cash Provided by Investing Activities (5,105,374.20) - - - -

Financing Activities: Increase/(Decrease)

Owner's Investment 3 21,133,278.36
Ownner's Withdrawal 3 (4,000,000.00) (4,000,000.00) (4,000,000.00) (4,000,000.00) (4,000,000.00)
Net cash Provided by Financing Activities 17,133,278.36 (4,000,000.00) (4,000,000.00) (4,000,000.00) (4,000,000.00)

Net increase/decrease in cash ₱ 38,765,478.84 ₱ 29,918,005.23 ₱ 35,809,193.66 ₱ 42,682,574.76 ₱ 50,587,657.48

Add: Cash, Beginning - 38,765,478.84 68,683,484.07 104,492,677.73 147,175,252.49
Cash, Ending ₱ 38,765,478.84 ₱ 68,683,484.07 ₱ 104,492,677.73 ₱ 147,175,252.49 ₱ 197,762,909.98