Students Available

GGC
8000

Items per week

Tea per cup
Coffee per cup
Toast per piece
Egg Omlete
Egg Boiled
Veg Chowmin
Egg Chowmin
Pakauda per Plate
Samosa per Piece
Total Units Daily
Total Units Monthly
Total Units Annually

NIST
5400

Percentage of Customers Having

50%
50%
5%
10%
20%
20%
20%
30%
20%

Daily
2214
2214
221
443
886
886
886
1329
886
9964

Demand Estimation
Locals
2100

Weekly Customers
15500

Price and Cost Calculation

Month
66429
66429
6643
13286
26571
26571
26571
39857
26571

Annual
808214
808214
80821
161643
323286
323286
323286
484929
323286

Target 10%/Annual
80821
80821
8082
16164
32329
32329
32329
48493
32329

298928.571428571
3,636,964.29

363,696

Daily
2214

Two Breaks
4429

Monthly Requirement
6735
6735
674
1347
2694
2694
2694
4041
2694

Weight
0.22
0.22
0.02
0.04
0.09
0.09
0.09
0.13
0.09

Price
8
20
7
15
12
45
55
30
8

Wtd Price
1.78
4.44
0.16
0.67
1.07
4.00
4.89
4.00
0.71
22

30,308

1.00

Cost
7
18
5
13
10
35
45
28
7

Wtd Cost
1.56
4.00
0.11
0.58
0.89
3.11
4.00
3.73
0.62
19

Strategy
Price
Place
Promotion
Service

Simulation
price adj
place
Promotion
Service
Total

Total Revenue
Cost of Production
Marketing Cost
Total Cost
Net Profit

Cost

Effect
2
40000
25000
30000

Morning
Unit/Move

Rs
1.00
3.00
2.00

500
20000
70000
65000

Sales
40,000.00
75,000.00
60,000.00
175,000.00

20,000.00
210,000.00
130,000.00
360,000.00

7,816,000.00
6,696,000.00
175,000.00
6,871,000.00
945,000.00

My Price
22

Marketing Budget
Place
Promotion
Service
Total Cost
Monthly Cost

Sales from simulation

Target Sales
Sales Target

40,000.00
75,000.00
60,000.00
175,000.00
14,583.33

Annual
360,000.00
363,696.43
Year
2014
2015
2016
2017
2018

Monthly
30,000.00

% of Target/Annual Increase
99%
10%
5%
5%
5%

Sales
360,000.00
396,000.00
415,800.00
436,590.00
458,419.50

Fixed Assets
Land
Building
Refrigerator, Microwave Oven, Toaster
Gas Stove
Utensils
Furnitures
Vehicle
Inverter
Total
Monthly

Amount
0
0
150000
15000
30000
45000
4500000
60000
4800000

Depretiation Rate
0
0
15%
15%
10%
15%
10%
20%

Raw Materials (Monthly Requirement)

Milk
Tea Leaves
Sugar
Coffee
Bread
Eggs
Chowmin
Spices
Flour
Vegetables
Paper Plates, Plastic spoons and forks
Plastic Cups
Oil
Gas Cylinders
Petrol
Total

Unit
Packets
Kg
Kg
Kg
Packets
Piece
Packets
Kg
Kg
Kg
Packets
Packets
Litres
Cylinders
Litres

Quantity

Labour (Monthly)
Driver
Cook/Server
Total

No.

Rate

Overhead Expenditure Monthly

Rent
Electricity
Insurance
Repair and Maintenance

1
4

15000
5000
10000
20000

1684
67
135
34
45
6735
1340
20
77
300
337
269
40
10
50

12000
12000

Telephone
Total

Per Unit Production Cost (PUC)

Total Production Cost(Monthly)
Total Production Unit (Monthly)
PUC
Mark-up
Price

Organization and Management Plan

Administrative Expenses
Furniture
Salary
Rent
Travelling Allowance
Total

Preoperating Expense
Registration
Training and Survey
Business Plan
Total

1000
51000

466770.952
30,000.00
16
40.00%
22

No.

Rate
2
2
1
2

4000
20000
10000
34000

25000
30000
5000
10000

Deptn Amount
0
0
22500
2250
3000
6750
450000
12000
496500
41375

Rate

Amount
12000
48000
60000

Projected Sales for 2014

Yearly
Monthly
Daily

Amount
25
42100
200
13400
100
13500
600
20400
25
1125
8 53880.95
50
67000
200
4000
70
5390
100
30000
70
23590
40
10760
200
8000
1500
15000
125
6250
314396

Amount
50000
60000
5000
20000
135000

for 2014
360,000.00
30000
1000

Financial Plan
Total Capital Requirement
Working Capital Management
Particulars
Raw Material Inventory
Work in Progress Inventory
Finished Goods Inventory
Accounts Receivable
Cash Balance
Total Working Capital

Days
15
0
0
0

Amount
120585.47619
0
0
0
260,583.33
385,572.14

Fixed Assets
Preoperating Expense

4800000
34000

Total Capital

Vegetable
Milk
Total

5,219,572.14
Vegetable and Milk Inventory
Days
Amount
3
3000
1
1403
4403
Financing Plan
Equity

Fixed Assets
Land
Building
Refrigerator, Microwave Oven, Toaster
Gas Stove
Utensils
Furnitures
Vehicle
Inverter
Pre-Operating Expenses
Working Capital
Total
Debt Ratio
Equity Ratio
Loan Required
Maturity Period (Years)
Interest Rate
Installment

WACC Calculation

150000
15000
30000
45000
1350000
60000
34000
385,572
2,069,572
0.6
0.4
3,150,000
5
14%
917,543

Debt

0
0
0
0
3150000
0
0
0
3,150,000

Debt Ratio

Interest
0.6

Amortization Schedule
Year
0
1
2
3
4
5

Equity Ratio
14%

Installment
0
917,543
917,543
917,543
917,543
917,543

0.4

Interest
0
441000
374284
298228
211523
112681

Total
0
0
150000
15000
30000
45000
4500000
60000
34000
385,572.14
5,219,572

Return Seeked
20%

Principle
0
476543
543259
619316
706020
804862

16%

Outstanding
3,150,000
2,673,457
2,130,198
1,510,882
804,862
0

Year
Sales (QT)
Sales Revenue
Raw Material
Labour
Administrative Expense
Overhead
Depreciation
Marketing
Interest
Total Expenditure

Net Profit (EBT)

Retained Earning

Year
Cash in
Equity
Loan
Sales
Sales after A/R

1
360,000.00
7816000
3772751.42857
720000
135000
612000
496500
175,000.00
441000
6352251.42857
1,463,748.57
1,463,748.57

2069572.14286
3150000
7816000
7816000

Total Cash in
Cash out
Purchase of fixed assets
Preoperating expense
Increase in inventory
Raw material
Labour
Overhead
Administrative Expense
Marketing
Interest
Loan Repayment
Total Cash out

5219572.1429

Net Cash Flow

260583.333333 1483705.39998

Cash at the beginning

Cash at the end

7816000

4800000
34000
124988.809524
3772751.42857
720000
612000
135000
175000
441000
476,543
4958988.8095
6332294.6

260,583.33

260,583.33
1,744,288.73

Year
Assets
Fixed Assets
Less accumulated depr
Net Fixed Assets

4800000
0
4800000

496500
4303500

Pre-operating expense

34000

34000

Inventory
A/R
Cash
Total Assets
Liabilities
Loan
Equity
Retained Profit
Total Equity
Total Liabilities

Year
Sales Revenue
Fixed Cost
Variable Cost

124988.809524 124988.809524
0
260583.333333 1744288.73332
5,219,572.14
6,206,777.54
3150000
2,673,457
2069572.14286 2069572.14286
0 1463748.57143
2069572.14286 3533320.71429
5,219,572.14
6,206,777.54

BEP (%)(FC/(Sales Revenue- Variable Cost)

55.95%

BEP in Volume

Year
Return on Investment (ROI)
Return on Equity (ROE)

1
7816000
1859500
4492751.42857

201,435.43

1
28.04%
41.43%

Projected Income Statement

2
3
4
5
396,000.00
415,800.00
436,590.00
458,419.50
8597600
9027480
9478854
9952796.7
4150026.57143
4357527.9
4575404.295 4804174.50975
720000
720000
720000
720000
135000
135000
135000
135000
612000
612000
612000
612000
496500
496500
496500
496500
175000
175000
175000
175000
374284
298228
211523
112681
6662810.52743 6794255.56583 6925427.790049 7055355.250103
1,934,789.47
3,398,538.04

2,233,224.43
5,631,762.48

2,553,426.21
8,185,188.69

2,897,441.45
11,082,630.14

Projected Cash Flow

2

8597600
8597600

9027480
9027480

9478854
9478854

9952796.7
9952796.7

8597600

9027480

9478854

9952796.7

4150026.57143
4357527.9
4575404.295 4804174.50975
720000
720000
720000
720000
612000
612000
612000
612000
135000
135000
135000
135000
175000
175000
175000
175000
374283.955997 298227.665835 211523.4950488 112680.7403531
543,259
619,316
706,020
804,862
6709569.7429 6917071.0714 7134947.46645 7363717.6812
1888030.25712 2110408.92855 2343906.533553 2589079.018803
1,744,288.73
3,632,318.99

3,632,318.99
5,742,727.92

5,742,727.92
8,086,634.45

8,086,634.45
10,675,713.47

Balance Sheet
2

993000
3807000

1489500
3310500

1986000
2814000

2482500
2317500

34000

34000

34000

34000

124988.809524 124988.809524 124988.8095238 124988.8095238

0
0
0
0
3632318.99044 5742727.91899 8086634.452546 10675713.47135
7,598,307.80
9,212,216.73
11,059,623.26
13,152,202.28
2,130,198
1,510,882
804,862
0
2069572.14286 2069572.14286 2069572.142857 2069572.142857
3398538.044 5631762.47817 8185188.688119 11082630.13802
5468110.18686 7701334.62103 10254760.83098 13152202.28087
7,598,307.80
9,212,216.73
11,059,623.26
13,152,202.28

Projected Break Even Point

2
3
4
5
8597600
9027480
9478854
9952796.7
1792783.956 1716727.66583 1630023.495049 1531180.740353
4870026.57143
5077527.9
5295404.295 5524174.50975
48.10%
190,457.00

43.46%
180,714.94

Projected Profitability
2
3
31.17%
29.39%
35.38%

29.00%

38.96%
170,111.27

34.57%
158,496.95

4
27.72%

5
26.20%

24.90%

22.03%

Particular
Capacity Distribution
Cash Inflow

Equity
Term Loan
Short term loan
Sales
Total Cash from sales
Total Cash Inflows
Cash Outflow
Pre-operating expenses
Purchase of fixed assets
Direct costs less depreciation
Admin expenses less dep
Overhead
Marketing
Increase in inventories
Interest Expenses
Term loan amortisation
Short term loan amortisation
Total cash outflows

Preoperating

1
8.75%

2
8.75%

3
8.75%

683900
683900
683900

683900
683900
683900

683900
683900
683900

2069572.1429
3150000
0

5219572.143

34000
4800000
393115.8 393115.8 393115.8
11250
11250
11250
14300
14300
14300
14583.33 14583.33 14583.33
124988.80952

4958988.81

433249

433249

433249

Net Cashflows

260583.3333

250651

250651

250651

Cash balance in the beginning

Cash balance at the end

0 260583.3 511234.3 761885.2

260583.33333 511234.3 761885.2 1012536

Short term loan requirement

Additional cash inflow
Interest expenses
Principal paid
Additional cash outflow
Additional Net cash flow
Cash balance in the beginning
Cash balance at the end

4
8.75%

5
8.75%

6
8.75%

7
8.75%

8
8.75%

9
8.75%

10
3.75%

11
8.75%

683900
683900
683900

683900
683900
683900

683900
683900
683900

683900
683900
683900

683900
683900
683900

683900
683900
683900

293100
293100
293100

683900
683900
683900

393115.8 393115.8 393115.8 393115.8 393115.8 393115.8 168478.2 393115.8

11250
11250
11250
11250
11250
11250
11250
11250
14300
14300
14300
14300
14300
14300
14300
14300
14583.33 14583.33 14583.33 14583.33 14583.33 14583.33 14583.33 14583.33

433249

433249

433249

433249

433249

433249

208612

433249

250651

250651

250651

250651

250651

250651 84488.5

250651

1012536
1263187

1263187
1513838

1513838
1764489

1764489
2015140

2015140
2265791

2265791
2516442

2600930
2851581

2516442
2600930

12 1st Year
8.75%
100%

683900 7816000
683900 7816000
683900 7816000

393115.8
11250
14300
14583.33
441000
476543.2
0
1350792

4492751
135000
612000
175000
124988.8
441000
476543
0
2936265

-666892 4879735
2851581
2184689

0
3859467

Rate

16.38%

NPV/IRR
Year

NPV
IRR

Cashflow
0 -4958988.80952
1 1483705.399982
2 1888030.257125
3 2110408.928553
4 2343906.533553
5 2589079.018803
1,322,630.25
28%

Selling Price Prob

IRR
19
10%
22
80%
25
10%
EXP IRR

Sd

Z
-3
-2

-1

IRR*Prob
(IRR-EIRR
0%
0.00%
0
28%
22.40%
0.0784
57%
5.70%
0.3249
28.10% Var
Std

IRR
-3
-2
-1.8
-1.6
-1.4
-1.2
-1.1
-1.09
-1.08
-1.06
-1.04
-1.02
-1
-0.95
-0.9
-0.88
-0.86
-0.84
-0.82

-64.47%
-33.61%
-27.44%
-21.27%
-15.10%
-8.93%
-5.84%
-5.53%
-5.22%
-4.61%
-3.99%
-3.37%
-2.76%
-1.21%
0.33%
0.95%
1.56%
2.18%
2.80%

Area under Z Total

0.4986
0.4772
0.4641
0.4452
0.4192
0.3849
0.3643
0.3621
0.3599
0.3554
0.3508
0.3461
0.3413
0.3289
0.3159
0.3106
0.3051
0.2995
0.2939

area
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5

-0.8
-0.78
-0.76
-0.75
-0.74
-0.72
-0.7
-0.6
-0.5
-0.4
-0.3
-0.2
-0.1
0

3.42%
4.03%
4.65%
4.96%
5.27%
5.88%
6.50%
9.59%
12.67%
15.76%
18.84%
21.93%
25.01%
28.10%

0.2881
0.2823
0.2764
0.2734
0.2704
0.2642
0.258
0.2257
0.1915
0.1554
0.1179
0.0793
0.0398
0

0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.5

(IRR-EIRR)^2*P
0
0.06272
0.03249
0.09521
0.3085611771

%chance that IRR may be lower than expected k=16%

0.14%
2.28%
3.59%
5.48%
8.08%
11.51%
13.57%
13.79%
14.01%
14.46%
14.92%
15.39%
15.87%
17.11%
18.41%
18.94%
19.49%
20.05%
20.61%

21.19%
21.77%
22.36%
22.66%
22.96%
23.58%
24.20%
27.43%
30.85%
34.46%
38.21%
42.07%
46.02%
50.00%

Interpolation
LR+ (Lc-Tc)/(Lc-Hc) * (HR-LR)
35.22%