Pariwartan Nepal Private Limited: Business Plan On
Pariwartan Nepal Private Limited: Business Plan On
Submitted to
Bharat Singh Thapa
Course Facilitator
Apex College
Pokhara University
Submitted By
Prasanna Poudel
Section Name: Nirvana
Examination Roll Number: 13220346
25 Feb. 2015
Kathmandu, Nepal
Declaration
I, the undersigned declare that this business development plan entitled, Business Plan on
Pariwartan Nepal Private Limited, is a result of my own study/ research carried out in the
year 2014/15. It has not been previously submitted to any other university or any other
examination (s).
Signature
_______________
Prasanna Poudel
Date: 2015-02-25
Apex College
ii
ACKNOWLEDGEMENT
I take this opportunity to express my sincere appreciation to the people without whose
support I would have faced insurmountable obstacles in preparation of this business
development plan.
Firstly, I would like to express my profound sense of gratitude to Mr. Bharat Singh
Thapa, Course facilitator, for providing me great attention and time. I really appreciate
his guidance and thankful for it.
I would also like to thank Ms. Namrata Mainali, Mr. Sunil Basnet for furnishing me
with valuable information that was critically needed for undertaking this work.
Finally, I would like to thank friends and families for their inspiration and support during
the preparation of this report.
iii
Table of Contents
EXECUTIVE SUMMARY ............................................................................................... ix
SECTION I ......................................................................................................................... 1
INTRODUCTION .............................................................................................................. 1
1.2.1 Vision.................................................................................................................. 2
SECTION II ........................................................................................................................ 4
iv
SECTION III ....................................................................................................................... 7
SECTION IV .................................................................................................................... 12
v
4.6.1 Markup pricing ................................................................................................. 16
4.7 Distribution.............................................................................................................. 16
SECTION V ...................................................................................................................... 20
FINANCIAL PLAN.......................................................................................................... 20
SECTION VI .................................................................................................................... 28
vi
6.1.6 Designing .......................................................................................................... 30
6.1.8 Cutting, inserting cotton into dolls body and sewing (For dolls) ..................... 30
6.1.9 Packaging.......................................................................................................... 30
Annexure .............................................................................................................................. I
vii
List of Figures
List of Table
viii
EXECUTIVE SUMMARY
The founder and owner of Pariwartan Nepal is Mr. Prasanna Poudel. Mr. Poudel is an
MBA from Apex College. Previously, he was engaged with various NGO and INGOs.
The manager of the company is also an MBA graduate with 5 years of experience in
related business field. Similarly, the designer is fresh college graduate of fashion
designing. The accountant and factory supervisors are BBA graduate with 2 years of
work experience. The is rising awareness, of reuse and recycle, among public along with
rising population, ultimetly producing waste, there is high prospect of growth for
company established with the aim of environment conservation by recycling waste. The
type of industrialisation and urbanisation inside kathmandu valley generate the sufficient
waste needed for successful operation of the company. Government of Nepal along with
different NGO and INGOs and very few private firms are practising in the the field of
textile waste management where are there are some companies which are successfully
running cycling business of plastics.
Pariwartan Nepal will come up with two different products, namely bags and dolls, made
up of textile waste. Each of the products will use 60% waste as product ingredient. The
target market for dolls will be kindergarten, baby day care, and primary schools.
Similarly, for fancy bags, female students will be the target market. Positioning statement
ix
or tagline of Pariwartan Nepal will be: “Change?? Yes we can.” As Promotional
strategy, the company will use Pull Strategy, which involves promoting heavily to end
users and consumers to create a demand. And for the distribution through retailers it will
use both pull and push strategy.
The total initial investment will be of Rs 6792750. The initial investment consists
purchase of fixed asset worth Rs 6,457,750.00 and pre operating expenses worth Rs
335,000.00. The profitability ratios of the company are in increasing trend. NPV, IRR
and ratios shows the promising investment opportunity in the business. The production
process starts with the collection of textile and plastics waste. For waste collection,
Pariwartan Nepal will use three different techniques via Rag pickers, Waste collection
containers and Waste collection program. After the dolls and bags are made from the
production department, the factory supervisor and designer are responsible for quality
control. They will see individual product before leaving for delivery. The responsibility
during this process is to see whether the bags are usable or nor, to inspect if there exist
any production defects and to check whether the other purchased accessories are inserted
in right way or not. And for dolls, they will see the body architecture, check whether
body parts are rightly placed or not, whether the decoration in properly made or not.
x
SECTION I
INTRODUCTION
1.1 Background
Industrialization has become an important factor to the development of a country‟s
economy, through the establishment of plants and factories. However, the waste or by-
products discharged from them are severely disastrous to the environment consists
various kind of contaminant which contaminate the surface water, ground water and soil.
There are number of reasons the waste are not safely treated. It is very essential to
understand the impacts of industrial waste to the environment (freshwater, seawater,
land). The industrial discharge carries various types of contaminants to the river, lake and
groundwater. The quality of freshwater is very important as it is highly consumed by
human for drinking, bathing, irrigation etc. The presence of contaminants from industrial
contaminant within the water may reduce the yield of crops and the growth of plant and it
will harmful to the aquatic living organism too.
With rapid urbanization and centralized migration in the Kathmandu Valley, especially in
the Capital, the waste produced by Kathmandu Valley residents has almost doubled in
recent times. According to Solid Waste Management Technical Support Centre, about
1,435 metric tons of waste is daily produced in the Kathmandu valley. Known for its
cultural heritage, it has been overwhelmed with serious environmental problems.
Spontaneous urbanization, rising human growth, increased polluting vehicles and
industries, centralized development activities, etc., have been gradually degrading the
living environment in the capital city. The consequences of these practices have resulted
in continuous damage to city‟s cultural heritage, and rapid loss of agricultural
lands. Rapid environmental degradation in the valley has resulted in a gradual loss of
city‟s landscape and urban environment. Hence, realizing this fact, the company
Pariwartan Nepal aims to promote social entrepreneurship by managing textile wastes
and plastics produced in the Kathmandu Valley. The company employs socially
1
backward women in the production process. These women prepare handmade dolls and
bags from textile and plastic wastes and the company sells those products in the market.
The company will be formally registered in the name of “Pariwartan Nepal Private
Limited”.
1.2.1 Vision
To be leader in solid waste management by empowering local.
1.2.2 Mission
To be socially-oriented and to contribute to the well-being of society by eliminating
negative environmental impact.
1.2.3 Objectives
The objectives of Pariwartan Nepal are as follows:
Environmental Responsibility
2
Continuous Improvement
Integrity
Acting in an honest, ethical, professional, and respectful manner with each other and
community, taking personal responsibility, and being accountable for achieving results.
Teamwork
Promoting unity and cooperation among staff, as well as with our community,
contractors, and stakeholders, to meet our purpose of achieving the mission, vision, and
objectives.
3
SECTION II
2.2.1 Manager
The manager is responsible for the administration of the business. The manager looks
after the overall operation of the business, such as marketing and distribution, human
resource management etc and will take important decisions of the business. He/she is
responsible for market research and all other marketing related activities. Other
employees including accountant and designer should report him/her.
2.2.3 Accountant
The accountant is responsible for looking after the finance of the store. Duties and
responsibilities of accountant include recording transactions, maintaining journal, ledger,
cash receipts, processing payments etc.
4
2.2.4 Designer
The major tasks of designer include designing eye-pleasing bags and dolls of latest trend.
2.2.7 Labor
Labors are socially backward female of nearby locations. They make the dolls and bags
as per the instruction of designer.
Founder
Manager
Factory
Accountant Designer
Supervisor
Waste Machine
Labors
Sorter Operator
5
Pariwartan Nepal is headed by the owner, to whom the manager needs to report.
Accountant, Factory supervisor and designer need to report the manager. And, all other
human resource including waste sorter, machine operator and labors are under factory
supervisor in the organizational hierarchy.
6
SECTION III
Management in the expanding cities is one of the most urgent improvement issues for the
government of Nepal and the stakeholders. The environmental implication of solid waste
management failure has resulted in the decline of health and hygiene conditions of a
growing population. Nepal and especially the capital Kathmandu are today going through
rapid changes and the urbanization is going fast. The urbanization result in more waste
and concurrently the development result in new life patterns, standard of living and
attitudes change the composition. New industries are erected that changes the waste
composition to include more and more hazardous waste.
The situation in Kathmandu is not representative for whole Nepal but if the developing
problems that are connected with solid waste are not taken care of further urbanization
will most likely give similar scenario in other growing cities.
7
Waste composition
Textiles,rubber Others
Metals leather 5%
2% 3%
Glass
3%
Paper
9%
Organic waste
Plastics 66%
12%
The waste composition analysis of Kathmandu valley indicates that the highest waste
fraction is organic matter (66%), followed by plastics (12%), paper and paper products
(9%), others (5%), and glass (3%). Metal, textiles, and rubber and leather each accounted
for 2% or less. The content of major reusable and recyclable materials (i.e.,plastic, paper
and paper products, metal, glass, rubber and leather, and textiles) comprised 29% on
average.
The is rising awareness, of reuse and recycle, among public along with rising population,
ultimetly producing waste, there is high prospect of growth for company established with
the aim of environment conservation by recycling waste. The type of industrialisation and
urbanisation inside kathmandu valley generate the sufficient waste needed for successful
operation of the company.
8
Government of Nepal along with different NGO and INGOs and very few private firms
are practising in the the field of textile waste management where are there are some
companies which are successfully running cycling business of plastics.
9
3.2.2 Threat of potential entrant
Due to the nature of business, waste management, low economics of scale, cost
disadvantages among competing products from China and capital requirement the threat
of potential entrants is relatively low.
3.3.1 Strengths
Trained and motivated workforce
Strong Business concept for conservation of environment and upliftment
of marginalized group of people
Eye pleasing designs from expert designer
Promising location of business
3.3.2 Weaknesses
Inefficient waste collection system
Low market coverage
10
3.3.3 Opportunities
Easy availability of raw material
Rising awareness among public
Positive impact on environment
Availability of assistance from both government agencies and NGOs.
3.3.4 Threats
Negative reaction from neighboring community
Further, the company will obtain license to work on solid waste management from
Kageshwori-Manohara Metropolitan under the Solid Waste Management Act 2068.
11
SECTION IV
MARKETING PLAN
There is the huge scope of recycled and upcycled products in the national as well as
international market. On the top of that the business of non-profitable and social
organization that works for the welfare of society and people goes really well due to the
emotional attachment of the people. Once the people will know about the objective of the
company, company can attract huge number of customer segment. With rapid
urbanization and centralized migration in the Kathmandu Valley, especially in the
Capital, the waste produced by Kathmandu Valley residents has almost doubled in recent
times. According to Solid Waste Management Technical Support Centre, about 1,435
metric tons of waste is daily produced in the Kathmandu valley. Due to the nature of
business, waste management, low economics of scale, cost disadvantages among
competing products from China and capital requirement the threat of potential entrants is
relatively low. The bargaining power of consumers is relatively high for the product of
Pariwartan Nepal as consumer as there are similar low cost Chinese products. Even the
product switching cost is low. As the company is using primarily using wastes and
trashes as the raw material for its production, process the bargaining power of supplier is
low. Even for cover of dolls and other accessories, the bargaining power of supplier is
low because of high competition among the suppliers. Threat of substitute product is high
in this business. As bags and dolls are not basic goods substitute product can ruin the
12
company's business. Customers may choose other types of bags and instead of dolls they
may choose other decorative or entertainers for their kids.
Kids
Demographic Youth
Market Mums
Segmentation for
dolls
Interior Designers
Purchase
frequency
Kindergarten, baby
day care and
primary schools
For the purpose of effective marketing, the market of dolls will be segmented under
demographic segment and under purchase frequency segment. Under demographic
segment, key segment will be kids, youth and mums. Similarly purchase segment will
include the group of interior designers and kindergarten, baby day care and primary
schools.
13
4.2.2 Market segmentation for bags
For shopping bags, the mass marketing will be done. And for fancy bags market will be
segmented based on the demography.
Female
Gender
Male
Market
segmentation for Demographic
bags
Students
Profession
Professional
The market segments for bags will be male, female, students and professionals based on
demographic segmentation.
14
4.4 Positioning Strategy
Positioning defines where your product (item or service) stands in relation to others
offering similar products and services in the marketplace as well as the mind of the
consumer. Pariwartan Nepal will position itself as a brand that cares the environment and
deprived members of the society. Positioning statement or tagline of Pariwartan Nepal
will be: “Change?? Yes we can.” People who need bags and dolls will remember us for
the unique design and qualitative products and our commitment to environment and
society.
Bag
Shopping bags are medium sized bags, typically around 10-20 liters, which will be used
by grocery shoppers to carry home their purchases. With the expert designers and
specially trained worker, Pariwartan Nepal will produce the reusable shopping bags with
the use of waste such as textile, leather and thick plastics.
B. Fancy bag
Fancy bags are made of waste materials that are collected by „ragpickers‟. During the
production process, the waste will be cleaned and fabricated into new products.
Pariwartan Nepal will use the concept of „upcycling': waste materials are refabricated into
new products with a higher value.
Doll
Dolls will be produced with different designs, shapes and sizes targeting the different age
groups of customers. The interiors of doll body will be filled with the cotton made from
the waste and the external cover will be purchased from market. Pariwartan Nepal will
produces 3 types of dolls:
15
A. Animal them
This will includes the doll with the appearance of animals like bear, dog, rabbit,
elephants etc.
B. Baby theme
This will include the baby boy doll and baby girl doll
C. Religious theme
This category will include the dolls with the appearance of different gods like
Ganesh, Shiva etc. Further Santa clause will be produced from august to
November.
4.6 Pricing
A pricing strategy takes into account segments, ability to pay, market conditions,
competitor actions, trade margins, and input costs, amongst others. It is targeted at the
defined customers and against competitors. Pariwartan Nepal will follow two type of
pricing strategy for its products.
4.7 Distribution
Pariwartan Nepal will use two modes of distribution channels.
16
4.7.1 Zero level channel
A state of art website will be built in order to transact directly with customers via
internet. Customer will visit Pariwartan Nepal's website and place the order and our staff
will promptly deliver the goods inside and within the periphery of ringroad. Delivery cost
will be charged to the customer according to the distance from our location.
Similarly, direct marketing will be done at kindergarten, baby day care, and primary
schools.
4.8 Promotion
As Promotional strategy, the company will use Pull Strategy, which involves promoting
heavily to end users and consumers to create a demand. And for the distribution through
retailer it will use both pull and push strategy.
Retailer empowerment:
It will provide a handsome amount of margin for our retailers which will induce retailer
to sell more number of products. Retailer will take initiation to sell our product while
applying this strategy.
Press conference:
The company will organize a press conference during our inauguration program.
Inauguration program will create awareness among the society about our company and
products. It will inform our mission, vision and objectives among the participants during
the program.
17
Further, it will inform the participants about our production process which will upcycle
the plastics and textile wastes into useful and decorative goods. Our contribution towards
the environment and society will be emphasized during the programme.
Pariwartan Nepal will participate in the expose and tradeshows related to Nepalese
handicrafts and production. It will promote the product by establishing stall and will
always communicate our consciousness for well being of society and environment.
Awareness Program
The company will organize awareness program among college students for environment.
During the program, insights will be provided on how social problems can be converted
to business motive. Basically, the three objectives of the awareness programs are:
Kids are our prime consumer for dolls. Thus primary schools, kindergarten and child
cares can be the potential buyers for dolls as they can buy dolls in large number for the
children‟s. Thus, the manager will visit different childcares, primary school, and
kindergarten in order to inspire the owner of those institutions to purchase dolls for their
class rooms.
It will tie up as a gift partner brand with leading Noodle Company in Nepal. The Noodle
Company will list our doll brand in some of their gift coupon, which will be put inside
18
the noodle packet. The objective of the tie up is to induce demand for the dolls while
giving opportunity to experience product.
Online promotion
Profile will be created on Facebook, twitter and YouTube where it will be updating
customers about new product and designs. The company will gift dolls and bags for those
customers who are heavily engaged on our Facebook page.
Magazines and FM
Advertisements will be given on renowned magazines for fancy bags. And company will
also sponsor FM program and provide dolls and bags as gift for one lucky caller.
19
SECTION V
FINANCIAL PLAN
20
5.1.1 Start-up Cost
Table 1 Start-up Cost
Start-up Cost
Total 6,792,750.00
The total start up cost will be of Rs 6,792,750.00. The initial investment consists
purchase of fixed asset worth Rs 6,457,750.00 and pre operating expenses worth Rs
335,000.00. The details of fixed assets and pre operating expenses are shown on annexure
1 and annexure 2 respectively.
Capital Structure
Total 7,000,000.00
A sum of NPR 7,000,000.00 is needed to start Pariwartan Nepal Private Limited. Out of
NPR 7,000,000.00, the owner will contribute 70% of capital i.e. 4,900,000.00 and
21
remaining 30%, i.e. 2,100,000.00 will be borrowed from commercial bank at the rate of
12% per annum.
Chart Title
20,000,000
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
Series1
8,000,000
6,000,000
4,000,000
2,000,000
-
Year 1 Year 2 Year 3 Year 4 Year 5
Company is expecting to earn the sales revenue of Rs 90, 66,000 from first year of sales.
The sales growth rate is expected to increase by 20% from second year to fifth year. The
sales revenue of first year is shown on annexure 3. The forecasting is based on the recent
economic outlook of the country and the political situation is expected to be stable and
positive towards private business.
22
5.3 Pro-forma Income Statement
Operating
expenses 5 (14,05,000) (15,93,300) (18,12,430) (20,67,873) (23,66,140)
Depreciation
expense 6 (9,65,150) (8,19,580) (6,96,005) (5,91,094) (5,02,021)
Preliminary
expense written
off 7 (67,000) (67,000) (67,000) (67,000) (67,000)
Income tax @
25% (2,55,838) (5,63,659) (9,65,729) (14,49,108) (20,32,854)
On the opening year company is expecting to earn Rs 7, 67,513 as net profit after tax. For
two years of operation, company will not provide any dividend and in third year 20%
dividend will be provided to owner and for fourth year cash dividend will be 30% and
23
fifth year 50% cash dividend will be provided. Each items of the income statement is
detailed on the mentioned schedule.
Balance sheet
Particulars Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Capital and
Liabilities
Assets
24
The total asset, on the opening day, is Rs 70, 00,000 and the total equity capital is Rs 49,
00,000. Similarly, long term loan is Rs 21, 00,000 and it is to be paid within five years.
The rate of interest is 12% per annum. Each item of balance sheet is detailed on the
related annexure.
Cash from
Investment
Purchase of Fixed
Assets (64,07,750) Nil Nil Nil Nil (80,00,000)
25
Cash from
financing
Activities
Issue of share
capital 49,00,000
Issue of 12%
Long Term Loan 21,00,000
Payment of long
term loan (3,30,560) (3,70,228) (4,14,655) (4,64,414) (5,20,143)
Preliminary
expense (3,35,000)
Investment Appraisal
Year Cash Flow Discounted Cash Flow Cumulative DCF
0 (67,42,750) (67,42,750) (67,42,750)
1 15,00,440 13,04,730 (54,38,020)
2 24,66,977 18,65,389 (35,72,631)
3 35,94,613 23,63,516 (12,09,115)
4 49,66,091 28,39,378 16,30,264
5 66,67,066 33,14,710 49,44,974
Total PV 1,16,87,724
NCO -67,42,750
NPV 49,44,974
Discounted Payback Period 3.43
IRR 36%
26
The company‟s Net Present Value is Rs 49, 44,974. The discounted payback period
according to forecasted income statement and forecasted balance sheet will be 3.43 years
and Internal Rate of Return is 36%. Since the company have positive NPV and IRR is
36%, the prospect of company is profitable for investment.
The current ratio of company is 7.14:1 in the first year of operation and in the fifth year
the ration will decrease as the cash is invested for establishing factory in Dharan and
Pokhara. Similarly, the profitability ratios of the company are in increasing trend. The net
profit margin is in increasing trend and the company will attend 32.44% net profit in the
fifth year. On the first year, Return on Asset is 9.94% and it will be 34.19% in the fifth
year. After the debt will be paid in fifth year, the company will be debt free.
27
SECTION VI
OPERATIONAL PLAN
Rag pickers
Waste collection containers
Waste collection program
Rag pickers
Rag pickers will be the primary source for collection of waste used during the production
process. Company will motivate the rag pickers by paying extra price for their collection.
Company‟s vehicle will reach each collection center early in the morning for collecting
those wastes.
It will coordinate with different social clubs, NGOs, schools and office for conducting
waste collection program. The aim of program is to collect bulk amount of waste from
28
the local community, offices and schools. These programs will be organized on periodical
basis.
A. Primary sorting
Under primary sorting, the collected waste will be divided into plastic and textiles. This
process will be carried out by trained waste sorter. The sorter will reject those wastes
which cannot be further processed. Those wastes will be carried to KMC waste collection
centre by our vehicle on the next day.
B. Secondary sorting
Here the textile waste will be categorized by the help of our expert designer. Textile
waste which can be used on manufacturing fancy bags will be put aside and other textile
waste will be put next side. For plastics, they will be sorted based on the colors.
29
6.1.6 Designing
Here our expert designer will design the bags based on our available pieces of textiles
and colors of plastics. The designer is solely responsible for making the fancy bags. The
designer designs the bags with the mix of plastics and textiles. We will have a normal
design for shopping bags and extra pieces of designs will be made in every production lot
for fancy bags.
6.1.8 Cutting, inserting cotton into dolls body and sewing (For dolls)
The cover of dolls will be purchased from the market. In this process the labors will be
responsible for cutting the cover according the design of dolls. Designer is responsible for
the dolls design. Manager will also assist in designing phase. After the piece of cover is
cut, the labor sews the periphery of doll and the cotton is filled inside the cover in order
to body architecture of dolls. Finally, it is sewed resulting into the finished dolls body.
The labor will again be responsible for decorating the dolls as per design.
6.1.9 Packaging
After the products pass the quality control, they are packed and ready for delivery.
30
Table 8 Closing stock
Monthly Monthly
Name of Price produce sales Closing Closing
Product per Unit d Quantity stock Stock
Dolls
Animal
Theme
Small
Sized 300.00 400.00 350.00 50.00 15,000.00
Small
Baby Theme Sized 200.00 300.00 250.00 50.00 10,000.00
Bags
Shopping
bags 40.00 1,000.00 950.00 50.00 2,000.00
The company maintains Rs 1,29,500 as closing stock for the first year of operation and
company is expecting to maintain the inventory growth rate at 10%. 50 units of each
produced item are placed as inventory for the first year of operation except fancy bags. 20
units of fancy bags will be inventory for the first year.
31
6.3 Quality Assurance and Control
After the dolls and bags are made from the production department, the factory supervisor
and designer are responsible for quality control. They will see individual product before
leaving for delivery. The responsibility during this process is to see whether the bags are
usable or nor, to inspect if there exist any production defects and to check whether the
other purchased accessories are inserted in right way or not. And for dolls, they will see
the body architecture, check whether body parts are rightly placed or not, whether the
decoration in properly made or not.
32
SECTION VII
Internal risks:
• Delay in opening of the company due to unavailability of bank loan, expert designer or
machine operators.
External risks:
• There may be risk from the political instability due to which it will hamper the business
operation.
33
Ensuring up to date legal obligation to mitigate non-payment risk.
Aggressive promotional campaign if customer do not accept the products
In case the business does not turn out to be profitable within the five years term,
Pariwartan Nepal will exit from market by adopting following strategies.
34
Annexure
Fixed assets
Particulars Quantity Price/Qty Amt.
Electronics
Laptop 1.00 40,000.00 40,000.00
Router-wifi 1.00 3,500.00 3,500.00
Telephone set with installation 1.00 3,750.00 3,750.00
Fan 1.00 2,500.00 2,500.00
Fax/copier/printer/scanner 1.00 20,000.00 20,000.00
Office equipments 10,000.00
Total (A) 79,750.00
Furniture
Sofa set 1.00 30,000.00 30,000.00
Revolving chairs 2.00 2,500.00 5,000.00
Showcase 2.00 25,000.00 50,000.00
Desks 2.00 5,000.00 10,000.00
Sit- on chairs 3.00 1,000.00 3,000.00
Chairs 10.00 1,000.00 10,000.00
Total (B) 108,000.00
Machinery
Textile waste cutting machine 1.00 500,000.00 500,000.00
High pressure water jet cleaning machine 1.00 100,000.00 100,000.00
Generator 1.00 2,000,000.00 2,000,000.00
Plastic Molding 1.00 500,000.00 500,000.00
Cleaner 1.00 500,000.00 500,000.00
Total (C) 3,600,000.00
Vehicles
Vehicle (Tata Ace) 1.00 2,500,000.00 2,500,000.00
Bike 1.00 120,000.00 120,000.00
Total (D) 2,620,000.00
Total Fixed Assets 6,407,750.00
I
Annexure 2 Pre operating Expenses
Particular Amount
Registration charge 25,000.00
Feasibility 9,000.00
Consultancy fee 1,000.00
Initial HR development and training 100,000.00
Factory site construction 200,000.00
Total 335,000.00
Shopping
bags 40 1,000 950 12 11,400 4,56,000
Fancy
Bags 1,000 200 180 12 2,160 21,60,000
II
Annexure 4 Cost of Goods sold
Particulars 1st year 2nd year 3rd year 4th year 5th year
III
Annexure 6 Amortization of preliminary expenses
Annexure 8 Salary
IV
Annexure 9 Rent
Factory Rent
Particulars Rent/Month Number of months Total
Factory Land 50,000.00 12 6,00,000.00
Factory Building 50,000.00 12 6,00,000.00
Total 12,00,000.00
Office Rent
Office 6000 12 72000
Total 72000
Annexure 10 Depreciation
Dep@20%
Electronics Year Beginning value Depreciation amt. Book Value
1 79,750.00 15,950.00 63,800.00
2 63,800.00 12,760.00 51,040.00
3 51,040.00 10,208.00 40,832.00
4 40,832.00 8,166.40 32,665.60
5 32,665.60 6,533.12 26,132.48
Dep@15%
Furniture Year Beginning value Depreciation amt. Book Value
1 1,08,000.00 16,200.00 91,800.00
2 91,800.00 13,770.00 78,030.00
3 78,030.00 11,704.50 66,325.50
4 66,325.50 9,948.83 56,376.68
5 56,376.68 8,456.50 47,920.17
Dep@15%
Machinery Year Beginning value Depreciation amt. Book Value
1 36,00,000.00 5,40,000.00 30,60,000.00
2 30,60,000.00 4,59,000.00 26,01,000.00
3 26,01,000.00 3,90,150.00 22,10,850.00
4 22,10,850.00 3,31,627.50 18,79,222.50
5 18,79,222.50 2,81,883.38 15,97,339.13
V
Dep@15%
Vehicle Year Beginning value Depreciation amt. Book Value
1 26,20,000.00 3,93,000.00 22,27,000.00
2 22,27,000.00 3,34,050.00 18,92,950.00
3 18,92,950.00 2,83,942.50 16,09,007.50
4 16,09,007.50 2,41,351.13 13,67,656.38
5 13,67,656.38 2,05,148.46 11,62,507.92
For 1
Manufacturing Overhead Month No of months Amount
VI
Annexure 12 Direct labor
Packing
Sewing and and
Cutting feeding cotton loading Total wage
Name of Produced Wage Wage per
Product quantity per piece Wage per piece piece
Animal
Theme
Small
Sized 4,800 10 10 2 1,05,600
Big
Sized 4,800 10 11 2 1,10,400
God
Theme
Small
Sized 2,400 10 10 2 52,800
Big
Sized 2,400 20 22 2 1,05,600
Baby
Theme
Small
Sized 3,600 10 11 1 79,200
Big
Sized 3,600 10 15 1 93,600
Shopping
bags 12,000 10 5 1,80,000
Fancy
Bags 2,400 20 40 1,44,000
Total 8,71,200.00
VII