PROJECT

ON

MEHRAN PACKERS AND MOVERS

SUBMITTED BY:
MUHAMMAD AHMAD
MAZHAR IQBAL
MUHAMMAD KAMRAN HAIDER
HASSAN MEHMOOD
AMIR KHAN

TO:
PROF. BASHIR GHUMAN

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 IN THE NAME OF ALLAH, MOST
BENEFICIENT,MOST MERCIFUL

Praise to Be Allah, Lord Of The World,

The Beneficent, The Merciful,

Owner Of The Day Of Judgments,

Thee (alone) We Worship; Thee (alone) We Ask For Help.

Show Me The Right Path,

The Path Of Those, Whom Thoa Hast Favored,

Not (the path) Of Those Who Earn Thins Anger

Nor Of Those Who Go Astray.

Ameen!

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 TABLE OF CONTENTS
Preface 05

Acknowledgement 06

1. Executive summary 07
A. The opportunity 07
B. The description of the business 07
C. Competitive advantage 07
D. The target market 08
E. The management team 08
F. Brief summary of the financial projections 09
G. Business needs 09
H. Exit strategy for the investors 09
2. The business
A. The opportunity 10
B. Description of the business 11
C. Vision, Mission and Slogan 12
D. Current status and requirements 13
3. Management team
A. Management team 13
B. Boards of directors 14
C. Boards of advisors 14
D. Key professional service providers 15
4. Company structure, intellectual property and ownership

A. Organizational Chart 16

B. Legal Structure 17
C. Industry analysis
A. Industry description 19
B. Target market 22
C. Competitive position 24
D. SWOT Analysis 27
E. PEST Analysis 28
D. Marketing plan
A. Pricing strategy 30
B. Promotions and advertisement 32
E. Operations plan
A. Application Form 41
B. Moving Information 42
C. Service delivery 43
D. Quality control 44

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F. Critical risk factors
A. Management risks 45
B. Marketing risks 46
C. Operations risks 46
D. Financial risks 46

G. Financial plan
A. Capital requirement 47
B. Financial projections 49
C. Income statement 55
D. Balance sheet 56
E. Financial Ratios 57

4
 PREFACE

In Master of Business Administration, Entrepreneurship is

a Key subject which gives opportunity
to students in practical field.

The most important point in Entrepreneurship is that the

student should spend their time in a true manner and with
the spirit to learn practical orientation of theoretical study
framework.

5
 ACKNOWLEDGMENT
We would take this opportunity to thank Mr.Basheer
Ghuman, our teacher for the course of Entrepreneurship at
the International Islamic University Islamabad, for his
valuable support and encouragement which he has offered.
His teaching method and words of wisdom will always be
remembered, and we are convinced that the knowledge of
Entrepreneurship that he has imparted to all of us would
help to effectively and efficiently understand and
implement the rules and concepts of Entrepreneurship.

6
 1. Executive Summary
A. The Opportunity

Need to be filled
As the large cities like Islamabad, Rawalpindi, Lahore, Karachi people facing the
problems while shifting their home. There is a need of proper company that solves their
problem of shifting their household goods. So, there is an opportunity gap in the market
and we going to launch our company to fill this gap.

 Opportunity to facilitate the people who are living in rented houses, flats, shops etc.
 Due to fast city life, people are more inclined towards using such services.
 Expensive and luxurious households, demands great care while shifting.
 There is no proper business which is providing this service.
 Local shifting services lack proper guidance and training.
 To get rid of conventional procedure of packing and moving.
 Lack of security of households while shifting.
 Fast growing need of rented houses
 More are more likely use to live in rented houses/ flats because they don`t have enough
money to buy their own houses
 Job persons keep moving from one place of the city to another so we can attain the
opportunity to help this salary class.

B. The Description of the Business

How Our Business Fills the Need

MEHRAN PAKERS N MOVERS will fill the opportunity gap by helping the people to
move their valuables household and belongings in the safest and most convenient way.
We safe the precious time of people and take their all worries. SAFETY and
CONVENIENCE are our first priority.

C. Competitive Advantage

7
Description of Business Model

Business model of our company is somehow a new emerging concept. We first of all analyze
the demand in the market. Through a survey we came to know that there is a gap between the
actual performance of the shifting of the houses and the offices and the desired. The second
step is to analyze some critical factors in detail. Then come to the solution loop which is
actually the solution to the problem/gap identified.

D. The Target Market

Our target market consists the people living in the areas like I/8,G-10, F/6,F/10, E-8,E-9,
Satellite Town, Chaklala, Scheme 3, Adjecent areas and belonging to upper or upper-middle
class.

E. The Management Team

8
Muhammad Ahmad
(CEO)

Kamran Hiader
(OPERATIONS MANAGER)
Hassan Mehmood
(HR Manager)
Mazhar Iqbal
Finance Manager
Amir Khan
(Marketing Manager)

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 F. Brief Summary of the Financial Projections

During 2012 we have a total of Rs. 97401000 cash inflows, which becomes subsequently low
in the second and third year but it was enough to meet our current liabilities and even there
was a net inflow of cash in all the first three years of operations which is a good sign for our
start-up firm.

We have total assets of 82927866, 87955470, and 91315706 respectively in the first, second and
third years. Our total expenses during the first year were 14473134 which increase steadily
according to the expected inflation level. Total equity was 79500000 in the first year and as
the business goes into its second year of operations it increases. Our building is valued at
around 33500000, land at 15000000 and equipments are valued at around 5000000.we have
categorized our expenses as follows:

 Advertisement expense
 Salaries
 Medical
 Utility
 Depreciation
 Renting
 Miscellaneous
 Start-up costs

Description of What Our Business Needs

The amount of capital needed and what the capital will be used for, if the plan is
going to a potential investor

Our business needs 25 canals of land which will be provided by one of our investors. For
building the infrastructure the cost required will partially be taken from the management
team and the rest will be from investors. The building will be constructed by Prime Group of
builders on behalf of our investors.

Exit Strategy for investors

In case our idea of packing and Shifting business in Pakistan does not work, we’ll go for
either of the following two exit strategies:

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 1. We`ll give our trucks to transportation business so they could use our
trucks for their own business operations and they will they amount of
installments to the banks because we are going to use truck on leasing
basis.

2. Our business building is on rental basis so we have no worry for the

building we`ll vacate the building. And so far as our land is concerned
we could use it for our wedding ceremonies. We could rent out the
land to catering business for functions.

THE BUSINESS:

A. The Opportunity

In Pakistan, the large cities like Islamabad, Rawalpindi, Lahore, Karachi people facing
the problems while shifting their home. There is a need of proper company that solves
their problem of shifting their household goods. So, there is an opportunity gap in the
market and we going to launch our company to fill this gap.

 Opportunity to facilitate the people who are living in rented houses, flats, shops etc.
 Due to fast city life, people are more inclined towards using such services.
 Expensive and luxurious households, demands great care while shifting.
 There is no proper business which is providing this service.
 Local shifting services lack proper guidance and training.
 To get rid of conventional procedure of packing and moving.
 Lack of security of households while shifting.
 Fast growing need of rented houses
 More are more likely use to live in rented houses/ flats because they don`t have enough
money to buy their own houses
 Job persons keep moving from one place of the city to another so we can attain the
opportunity to help this salary class.
 Save the time of the people

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 B. The Description of the Business

How the proposed business solves the problem or fills the need

MEHRAN PAKERS N MOVERS will fill the opportunity gap by helping the people to
move their valuables household and belongings in the safest and most convenient way.
We safe the precious time of people and take their all worries. SAFETY and
CONVENIENCE are our first priority.

Household shifting is the process of vacating one residence and settling in a different one.
A move can be to a nearby location within the same neighborhood. Moving a home small
or big can be a daunting task, it is stressful, but with the right preparation and care you can
alleviate some of the stress. We, as reliable movers and packers offer expert services to
perform such hectic tasks. When it comes to moving the treasured belongings, people
surely be looking into aspects like goods safety, moving costs and communication
facilities of the relocating company, strong network of the relocating company, continuous
information flow about movement of your belongings etc. We can eliminate much of the
stress felt while planning your move by customizing people`s moving experience so that it
is exactly what they want it to be.

Mehran Packers-n-movers ensure attention to all household shifting details whether big
or small helping you to settle down quickly and peacefully in a new location. Household
shifting services comprise of an entire package of services, right from the initial
consultancy to the final setting in at the new destination. Mehran Movers and Packers
understand needs and requirements of their clients and provide personalized shifting and
moving of your valuable household goods containing furniture, glass items, paintings,
electronic equipments, television, microwave oven, soft items like glassware & dishes and
sensitive electronic items with extra precautions in packing to protect them.
They acquire a sound infrastructure backed by latest technology which enables them to
provide most innovative solutions to client’s requirements. They are well connected and
located to ensure speedy services. They acquire a fleet of vehicles of varied sizes to cater
all categories of cargo. Also, they acquire most experienced, committed and professional
manpower. They comply with all sorts of formalities to ensure optimum security and
complete protection of goods from any kind of accidental mishap.

Vision

―Our vision is to be the best in every Endeavour we undertake‖

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 Mission Statement

―MAKING AFFORDABLE FOR EVERY BODY TO USE A PROFESSIONAL

PACKING AND SHIFTING SERVICE‖

SLOGAN

―WE TAKE YOUR WORRIES ...!‖

Description of the business model

Business model of our company is a new emerging concept in which we first of all analyze
the needs, what is currently offered by other company. And what are the needs and demands
of the customer. We through our surveys and research came to know that there is a gap
between the actual performances of the other company. In this type of business, the desired
performance and through effective means this gap is fulfilled by our school. The second step
is the factor analyses that include a detailed analysis of some of the critical factors like
organizational system, consultant support, service quality and time management. Then comes
the solution loop which is actually the solution to the problem/gap identified during the first
stage. Our best efforts to provide our customer with our best effects, effect social links and at
least by improving quality.

How the business will create a sustainable competitive advantage:

Our company will create a sustainable competitive advantage by taking into consideration the
following points:

Management team strength

Our management team includes dedicated and highly experienced personnel and is one of the
key competitive advantages we have.

Friendly on co-operative staff

We’ll provide friendly environment to our clients. Our staff will be very cooperative.

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D. Current status and requirements

We are providing packing and shifting service to the locality of Islamabad. For this
purpose, we require professional as well as technical, with the minimum experience in
relative field of moving and packing.

Now, our company is at introductory stage and looking forward for exponential growth
through both by providing quality services by offering low cost.

After successful concept testing, we will move to the other cities of Pakistan.

The future prosperity of our business depends upon following aspects:

 Low cost strategies

 Trained and professional staff
 Management expertise
 Quality of service (prices, competitors, political situations)
 Create goodwill of the company.

We will give vital to these factors for our future success.

3. Management Team

The management experience, management ability and technical expertise of our management
team are discussed below:

Muhammad Ahmad

CEO

Muhammad Ahmad is a post graduate from International Islamic University, Islamabad;

he did his MBA with majors in Management and then he completes the PMP (Project
management professional) degree. He worked with AL-YOUSAF GOODS TRANSPORT
CO. he worked about 5 years and in that business he came to know the shifting problems
of the people who want to move their household. Then he came up with new concept of
packing and shifting company.

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 Kamran Haider

OPERATIONS MANAGER

Kamran Haider holds a post graduation degree in MBA and specialization in major
OPERATIONS MANAGEMENT and from International Islamic University, Islamabad.
Previously he worked for HONDA as senior Operations manager for 3 years. Here
Kamran is responsible for managing the office and, overseeing the staff activities and
keeping the business running smoothly. His duty also includes developing
communications with subordinates. He is responsible for all operations regarding all
packing transportation operations employee recruiting, selection, training and developing
and also setting the pay scales of the employees.

Hassan Mehmood

HR MANAGER

Hassan Mehmood holds a post graduation degree in MBA and specialization in major
HRM and from International Islamic University, Islamabad. His duty also includes
developing communications with subordinates. He is responsible employee recruiting,
selection, training and developing and also setting the pay scales of the employees.

Mazhar Iqbal

FINANCE MANAGER

Mazher Iqbal holds a post graduation degree in MBA and specialization in major Finance
and from International Islamic University, Islamabad. His duty to perform all financial
operation.

Amir Khan

MARKETING MANAGER

Mazher Iqbal holds a post graduation degree in MBA and specialization in major Finance
and from International Islamic University, Islamabad.

BOARD OF DIRECTORS

Our MD (Managing Director) who will control, lead and organize the organization
abilities is Muhammad Ahmad who is also the CEO of the company.

Function of MD:

 Appoint the officers for key positions

 Declare the dividend/profits

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  Oversee the performance of management team

Our Advisors

Accounting Firm:

HLB & CO. was established in early 70’s as a firm of chartered accountants at Islamabad
by Mr. Muhammad Ali (FCA) with the prime object of rendering the services in the area
of Finance and Accounts to the domestic market. The company widened its scope to be a
part of technology revolution resulting into the formation of Business Process Outsourcing
arm. Today they are not only catering to the Pakistan but also the International market
with wide array of services in the Finance and Accountancy space.

HLB & Co endeavor to elevating Finance and Accounting Outsourcing from

transaction processing to the level of a true business transformation. To provide auditing,
accounting, taxation, management consultancy and computer consultancy services.

They understand that selecting a firm to entrust your accounting, financial, financial
services, and business development coaching and mentoring needs is an important
decision requiring great care and forethought. Rapid economic changes and increases in
competitive pressures magnify the significance of the decision as every business,
organization and individual must make the very most of their valuable resources. They can
provide us with valuable information to help you make the right decisions with tools such
as benchmarking, cash flow, forecasting, payroll and much more!

Using state of the art technology, we fuse strategy with results in an effort to help you
grow.

Some of our extensive business development coaching services include but are not limited to:

 Business Start Up mentoring

 Management Consulting and coaching
 Strategic planning mentoring
 Budgeting

Whatever stage your business is at, your HLB & Co chartered accountants is there to
counsel and help you through the transitions, big and small. We ask the right questions
because we've been helping our clients with the challenge of change for over 34 years.
Click here to make an appointment with Ijaz Akbar Senior Partner.

16
 We have simultaneously evolved to meet the needs of clients in today's
rapidly changing business environment. To that end we have developed a range of services
and specialties, while embracing Information Technology that very few can match.

As an innovative and forward-looking organization our future plans already embody

the expansion of our IT services to incorporate on-line book keeping, e-commerce and the
continued growth of our specialist activities.

Their service

The way they manage our business is based on a set of core values – honesty, integrity and
respect for people. These are embodied in our principles that describe the behavior
expected of every employee in their business relationships with other people,
organizations and companies.

They believe in the promotion of trust, openness, teamwork and professionalism and take
pride in what we do. In order to make sure that we act according to our values, they have
put in place, and are still installing the necessary management systems and protocol tools
that help employees go about their daily business in a responsible way.

Following is the list of their services:

 AUDIT & ACCOUNTANCY

 MANAGEMENT CONSULTANCY
 TAXATION MANAGEMENT
 CORPORATE AFFAIRS & SECRETARIAL PRACTICES
 INFORMATION TECHNOLOGY NEEDS
 COMMITMENT TO BUSINESS SOFTWARE EXCELLENCE
 KEY BENEFITS OF INTEGRATED ACCOUNTING SYSTEM
 SPECIAL AUDITS & INVESTIGATIONS

ORGANIZATIONAL CHART:

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 CEO

OPERATIONS
MARKETING FINANCE PROJECT
/ HR
MANAGER MANAGER MANAGER
MANAGER

Description of the organizational chart:

The CEO, board of advisers and board of directors remain in close contact to each other
and hold regular business meetings which shows the sense of dedication and passion for
the team to gear the business ahead.

The CEO is on the top of the traditional hierarchy and acts as a figurehead of the
organization. Then the second tier includes the CFO, operations manager, marketing
manager and project manager.

LEGAL STRUCTURE:

Legal form of organization:

MEHRAN PACKERS AND MOVERS is a general entrepreneurial business and is registered

under the company’s ordinance of 1984. The partners of the business have the unlimited
liability.

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 Owner ship status

Being a startup firm there are five partners but as the time passed and firm needs more capital
it will surely go for more partners which is written in partnership deed.

INDUSTRY ANALYSIS

INDUSTRY OVERVIEW:

In today’s competitive era and fast paced life, professionals relocate to another city or area, in
search of better job opportunities and to accomplish their dreams. Till very recently, the very
thought of relocation would include months of planning, sleepless nights, help of neighbors,
tiresome packing, leaves from offices and loads of money. But with the inception of this dynamic
industry called the Mehran Packers and Movers, relocation has become an easy, economical, safe
and hassle free activity. It takes one phone call or visit to the moving agent, and the work is done
in the most conducive and structured manner.

Mehran Packers and Movers is a service oriented industry, with thrust and focus being given on
total customer satisfaction. Though the industry has a separate identity, it works with the support
of many other industries such as the warehousing, insurance, etc.

Manpower and infrastructure plays an vital role in the operation of the packers and movers; as
based on their competency the enterprise can pitch for complete customer satisfaction, thus carving
a niche in the market. Given this, it becomes imperative for the mehran packers and movers to be
experienced, efficient and reliable. Easy and friendly, they should also be able to understand the
exact requirement of the clients and offer customized services that not only meets their
expectations but also fits their budget.

Besides, having a proficient team with effective communication skills, it is also very important to
have good market repute for the players of this industry. Complete transparency and adherence to
various corporate & legal codes should become the underlining factor of their service

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ABOUT MEHRAN MOVERS AND PACKERS

Mehran Packers and Movers are said to be those people who help you to pack and move your
belongings in the safest and the most convenient way. Earlier both these services were
distinct from each other with different companies involved in packing the belongings and
others in transporting the belongings to the desired location. However in the past 50 years as
travel has become easier most of the times both these services are offered by the same
company.

There is no clear cut period when mehran Packers and Movers really gained momentum. As
mentioned earlier these two jobs were handled by different sets of professionals but then
because of mergers and agreements between companies, the thin line of difference between
the two blurred considerably.
Most of the individual big companies decided to group the two activities together. This
activity has gained much more significance in the past decade or so due to industrialization.
Because of the growth in various companies and expansion all around the globe people were
being moved and transferred with a higher frequency than before.
As people moved their stuff needed to be moved as well. And when dealing with cross-
country transfers or international ones people always seemed to place more trust in
professional companies than in individual dealers.
Thus, soon enough there was a huge rise in the number of moving services being offered. At
the same time packers too witnessed a growth in their business sector as many people
preferred their expensive possessions to be handled thoroughly by such services. Despite the
large number of related services available people around the world still prefer to pack and
move their stuff on their own.

The Moving and Packing industry has certainly seen a tremendous rise in its turnover but it
seems a bit pale in comparison to the amount of people who are moving. This is due to two
reasons; in the western world labor is very expensive. Due to this most of the times it is not
feasible to engage the services of these experts.

Secondly packing is something which most of the people consider as personal this too
contributes to the relative barrier in this industry. Within Pakistan most consumers prefer to
pack the goods on their own and transport them through trucker services or exclusive
movers.

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 PACKERS AND MOVERS IN PAKISTAN:

Some small companies are providing packing and moving service in Lahore and Karachi and
Islamabad but not in proper way so there is gap of opportunity to be filled out. So this
industry is at introductory stage in Pakistan. Names of the companies those are providing
packing and moving service in Pakistan.

 Care Packer Pakistan.

 Family Movers International.

INDUSTRY DESCRIPTION

INDUSTRY TRENDS:

In Pakistan there are very few companies those are providing this service in few cities of
Pakistan at low scale but some of them only provides packing or moving service at very high
cost. So the industry is on introductory stage and there is a window of opportunity for new
entrant.

INDUSTRY SIZE:

As movers and packer industry in Pakistan is on introductory stage the local industry size is
very small. But all over the world especially in U.S.A, U.K and Canada the size of this
industry is at peak and serving the people in very profitable way.

INDUSTRY ATTRACTIVENESS:

The packers and movers industry is become very attractive in Pakistan now a days because
the city life become very busy and people have not much time to waste on shifting there
home and people are also not satisfy with the conventional type of packing and moving
because they were not cost effective and cause a lot of damage of goods. So there is a need of
company which can provide proper service of moving and packing.

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PROFIT POTENTIAL:

Packers and Movers industry has high profit potential all over the world and its demand is
also increasing day by day in Pakistan because new housing societies are establishing in
many cities of Pakistan. This industry is on introductory stage and proving opportunity for
new entrant. Introducing this industry in Pakistan is very profitable now a day because most
of the people in big city of Pakistan like Lahore and Karachi are living on rent or shifting
there home to newly established society.

PRODUCT LIFE CYCLE:

As we are new in the market and for the first two years we will be in the introduction stage
and we need a lot of promotions for MEHRAN PACKERS AND MOVERS Besides this we
have opportunity for growth and will chance to reach at maturity after few years.

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 BCG MATRIX

Packers
and
Movers

MEHRASN Movers and Packers are currently lying on ‘Question Mark’ because this
industry is on introductory stage. The market growth is high but the market share is low
because people used to shift their homes by themselves. We are trying to increase our market
share by extensive marketing and advertising on different media sources. We are planning to
adopt extensive marketing strategies to attract our customers.

TARGET MARKET

SEGMENTATION

We have segmented our market using the following segmentations

1. Geographic

 Country — Pakistan

 City — Islamabad

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  Density — Urban

2. Demographic

 Age — 25 or above

3. Education— Educated

4. Psychographic

 Social Class—Upper ad Upper-Middle

 Business Class—Small businesses

5. Behavioral

 Benefits Sought

DESCRIPTION OF TARGET MARKET:

Mehran Packers and Movers industry is on introductory stage in Pakistan, it is very good
place to enter in. Islamabad is one of the most urbanized city of Pakistan provides a great
opportunity for new entrant to came up and serve the people of Islamabad. For this reason
our target market will be the people of Islamabad initially. After 3 years operation we’ll
expand our target market to the other cities of Pakistan depending on the respond we get in
Islamabad.

We are mostly targeting the people who are living in rented house, professional moving to
other cities and small business.

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 • Social Class
1 A

• Business
2 Class B

COMPETITIVE POSITION WITHIN TARGET MARKET:

COMPETITOR ANALYSIS

Packing and moving industry is on introductory stage in Pakistan, we have few competitors
that are offering the service of packing and moving but not in proper way.

DIRECT COMPETITORS:.

 Family Movers International.

 Care Movers

INDIRECT COMPETITORS:

These are the conventional movers.

COMPETITIVE ANALYSIS GRID

Competitor’s analysis grid helps us determine our position with respect to our competitors.

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Names of Mehran Family Care
features Packers movers movers
and International
Movers
Legal status Registered Registered Registered
and licensed and licensed and
from federal from licensed
govt. provisional from
Nature of govt. provisional
service govt.
Provide
both Provide only Provide
Packing and Moving only
moving facility to the Moving
facility to commercial facility to
household consumers the
and commercial
commercial. consumers
Price Rs: 800 Per Rs: 1800 Per 2000 Per
5 km move move

Brand name Initially Recognized Not Good

recognition lounged but by only the recognition
will get to people of in Pakistan.
be known Karachi
by the end
of the first
year
Staff are Fully Fully
Sufficiency fully equipped equipped
of equipped
equipment
Quality of High High Quality Good
Packing Quality of Packing quality
material packing
material.

Professional 10 highly Team are highly

team experienced highly experienced
team experienced team

26
 According to the Comparative Analysis Grid Mehran Packer and
Mover are only the company which are licensed from Federal Government. Provide both
Packing and moving service to Household and commercial consumers with high quality of
packing material and experienced staff.

PORTER’S FIVE FORCES MODEL

Competitive forces Threat to Industry Profitability

Low Medium High

Threat of substitutes √

Threat of new entrants √

Rivalry among existing firms √

Bargaining power of suppliers √

Bargaining power of √
customers

DESCRIPTION OF PORTER’S MODEL:

Threat of substitutes is medium for Packers and movers since most of our target market can
shift there homes through conventional shifting process. Threat of new entrants is high
because this industry is on introduction stage and there is more window of opportunity for
new firms. Rivalry among existing firm and Mehran Packers and Movers would be low
because they are not such firm in Pakistan who are providing proper packing and moving

27
facility. Bargaining Power of Suppliers would be low since there are a large number of
suppliers to buy from. Bargaining power of customers is medium.

SWOT ANALYSIS:

STRENGTH:

 Cost effective
 Attractive packaging
 Valuable services
 Safety and protection
 Insurance
 Good management
 Trained Professional staff
 Dynamic leader ship
 Good Transportation
 24/7 hours open
 One stop shop

WEAKNESS

 Operating loss in the initially due to high fixed cost

 Waste cannot be utilized properly.
 Improper time management
 Poor infrastructure

OPPORTUNITIES

 Serving the under serve market

 Car carrier
 Expansion to other cities

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  Development of association with other business.
 Expansion of relationship with other partners
 Maximum utilization of resources

THREATS

 Current security condition

 High oil prices
 Rapid change in government
 Economic instability
 Conventional way of shifting

PEST ANALYSIS:

The external macro-environment in which a firm operates can be expressed in terms of the
following factors

 Political

 Economic

 Social

 Technological

Packers and Movers to operate under the effect of these factors

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ECONOMIC

The economic arena in which Mehran Packers and Movers will function is not favorable. The
economic condition of Pakistan is deteriorating. The major economic challenges facing
Pakistan is raising poverty and unemployment, heavy external and domestic indebtedness,
high fiscal deficit and low investment.

Poor domestic commodity production combined with excess demand and some high import
prices have been inferred to cause annual inflation to increase to 12 per cent during 2007-08
and further to 25 per cent in the first quarter of the current year

A Rise in costs of most products and services has been seen which is corresponded with an
increase in pay of government employees, although most claims, it’s hardly a relief;
especially since private sector employees have been not so lucky.

TECHNOLOGY

In terms of Technological Capabilities variables, Pakistan is placed at 10 (above Bangladesh)

for use of computers and third from the bottom (above Nigeria and Bangladesh) for the
number of telephone lines and the use of internet.

POLITICAL

In terms of Political Conditions variables, Pakistan is ranked at 7th for rule of law and is
placed at 8th for corruption. Pakistan face significant structural weaknesses, and are much
more likely to fail in meeting the projections than those countries whose political and
economic conditions are more stable today.

Political changes in Pakistan are moving extremely fast. The Pakistani army has entered full-
scale military operations against the local Taliban in the Sawat Valley of the Northern
Province Sarhad. The press is in -chains and the printed word is in disgrace. Political leaders
are victimized and political parties suppressed

SOCIAL

In the social sector too, there is a need for significant improvement. To take the example of
health care, Pakistan spent less than $25 per head on health each year in 2005. Pakistan is a
marked under-performer, spending just $13 per person on health care in 2003, a figure that
has fallen 13% since 1998. Current situation is not much different for the previous years
mentioned above.

30
MARKETING PLAN:

PRODUCT FEASIBILITY AND STRATEGY:

Concept Testing:

We conducted a survey using the most appropriate tool i.e. the questionnaires in which we
asked tenants if a FM service operating in Pakistan, would they like to avail it or nor. For this
purpose we used a sample of 200 and response we got is shown below graphically:

NO. of respondants willing to use the Mehran

Packers and Movers Service

not willing
30%

willing
70%

31
Out of the 200 respondents, 70% said that they’ll happy with opening of Mehran PACKERS
and MOVERS and will like to get the benefit from this company while rest 30% said they
would not.

Conclusion drawn from the survey

Taking into the response of our target market, we are sure about the success of our project.

MARKETING STRUCTURE:

As, we are new in the market and some companies already provide services to the customers.
And as a new product much time will be spent by the Mehran PACKERS AND MOVERS to
create awareness of its presence amongst its target market.

 PRODUCT

Established quality and branding and protect the intellectual property such as
patents, trademark etc

 PRICING

At the introduction stage prices are low. And settle according to the economic
conditions of Pakistan because the fuel prices are keep on rising which can severely
affect our business.

 PLACEMENT

Is selective until consumer show acceptance and the entire placement are
made by the company itself.

 PROMOTION

The main objective of promotion is to build product awareness and to educate

people about the product.

 PEOPLE

The staff we are required should have interpersonal skills, aptitude, and
Knowledge about the service which are providing to the consumer.

 PROCESS

The systems used to assist the organization in delivering the services.

32
  PHYSICAL EVIDENCE

The services being delivered to the consumers. And it is the element of the
services mix where the consumer is in the condition to judge the level of services
provided by the MEHRAN PACKERS AND MOVERS. .

PROMOTIONS:

1. Discount

The discount will be provided to those who come with any reference or from our friends
and family.

2. Referral Schemes

A great source for our biz will be our current pool of happy customers. Families that will
be pleased with our program will be glad to share their experiences with their friends and
families.

 Send them a thank you note for referring someone.

 Give them a feedback note and request them for referrals.
 ADVERTISING:

We’ll be advertising our camp using the following tools

 Hoardings

 Brochures

 Referrals

 Web directories

 Cable adds

 Add on Face Book as well as on YouTube

Distribution through News papers

We’ll be distributing our brochures with the local news papers also

 Dawn
 The NEWS
 Nawa-e-Waqt
 Jang
 The Nations

33
HOARDING:

The city in which we’ll use hoardings for the advertising of our company along with
the campaign’s budget is given below:

HOARDING CAMPAIGN FOR THE FIRST MONTH

PRICING STRATEGY:

Price is a very major factor as far as economy and consumer mind setup is concerned. While
setting prices company should consider setting such an appropriate price that coincides with
the product image in the consumer mind that is established through promotion. As we are
entrepreneurs so we should set price while keeping the affordability of our customer and our
competitor.

PRICING OBJECTIVITY:

Our main objective is to capture the maximum market share and to become the
market leader. Also have brand image in the market.

PRICE SETTING:

Before setting the many prices we will include many factors whose cost combine
together and make the prices which are

 Cost of workers

 Services cost

 Transportation cost

 Estimated demand

 Cost

 Promotion cost

 Distribution cost

 Cost and price of competitor

STRATEGIES:

 STATUS GOALS:

34
The primary intention of us to adopt these goals to avoid any form of prices
competition. Major reason for seeking the price stability is to avoid price
wars. This pricing policy will give us an easy means of avoiding difficult
pricing decisions.

 MARKET SHARE LEADERSHIP:

This is related to current situation in short return and not to long run. We will
select that price which gives it maximum current profit.

 TO MAXIMIZE PROFIT:

According to the economic theory or business practices there is nothing wrong

with profit maximization because a profit maximization goal for us is far more
beneficial to it and also to the public, if it is practiced over the long run. To do
this we will sometimes have to accept short run losses.

 DEMAND SCHEDULE:

Different prices for services will produce different level of demand. The
relation between the price and resulting demand is captured in a demand
schedule. We have a normal demand schedule in which price varies as
inversely to demand.

 FINAL PRICE:

The price of us is in agreement with different people such as government,

distributors, dealers, customers.

35
 PRICING PLAN:

BOX SIZE COST PER BOX BOX DIMENSIONS

Regular box Rs 400/box (16 * 13 *12)

Medium box Rs 500/box (18 *18 *16)

Extra large box Rs 600/box (24 * 18 *18)

Dish box Rs 800/box (Hold full set of 6)

Wardrobe box Rs 800/box (Hold about 3-5ft of clothes)

TRANSPORTATION KILOMETERS COST

5 K.M Rs 4OO

10 K.M Rs 800

15 K.M Rs 1500

25 K.M Rs 3700
OTHERS COST:

Bubble wrap cost = Rs 60/ft

LABOUR CHARGES Rs 400/trip
Wrapping paper = Rs180/pound

Tape = Rs 160/Roll

OPERATIONS

Mehran Packers and movers is always committed to provide the best services within time.
The transportation services provided by us are unmatched as we have skilled drivers &
trained staff to do so for all our valuable clients. Since we have our own fleet of Trucks,
Containers so we don’t have any kind of problem in on tome delivery of the goods.

36
We are providing the packing n moving services to the tenants and the small office who are
about to relocate their houses/business.

OUR Philosophy

At Mehran packers and movers we are trying to deliver cheap and best shifting facilities to
our customers. Our trained and highly motivated staff will try their best effort to reduce the
time of shifting so people starts their work as early as possible at their new locations. Our
marketing team will encourage new customer to come and try our service by offering them
different packages.

OUR Program

The main focus of our business is to give the awareness to people about the concept of
professional Mehran Packers n Movers. Our main object will be the elimination of the
conventional concept of shifting things. People usually used to shift their homes by their
own, doing this they face a lot of difficulties and of course lot of mental stress. So in order to
get rid of it they can simply call us to help them in shifting.

OUR Teams

There are 4 teams having 4 separate supervisors. Each team will handle 1 client at one time
and reports to the project manager. The whole responsibility will be on the shoulders of the
supervisor of the concerned team which dealing with the client. It’s the primarily duty of the
team to shift the household of the client safely and timely to their required destination. Team
will asset and guide the clients. At end when all the work of shifting is done our project
manager will go and take feedback from the clients if they need any further changing.

Packing Method

Mehran Packers and movers are always committed to provide the best services within time.
The transportation services provided by us are unmatched as we have skilled drivers &
trained staff to do so for all our valuable clients. Since we have our own fleet of Trucks,
Containers so we don’t have any kind of problem in time delivery of the goods.

Processing

Crockery is wrapped individually in cushioning paper and placed into special corollary
cartoons which are liable with fragile stickers.

Furniture is wrapped in polythene to prevent moisture ingress, and covered with corrugated
sheets into heat curtail shapes to permit easy positioning into container.

TV, computer, washing machine, fridge, almerah, music system, glass items and other items
are wooden crated for full protection.

37
 Books are placed in small, strong cartoons which are lined with polythene to keep inside part
to be dry at all the time.

Clothes, kitchenware items are kept into polythene lined cartoon.

If weight is critical for an air shipment, we palletize the shipment and surround it will
stretch film, to provide safety as well as keep the gross weight down, to sum up every
precaution is taken to ensure a safe and damage free delivery at the destination.

Office Relocation

Office Relocation is different from residential moves not only in terms of the word but the
entire floor planning, organization of tasks and the relocation itself. This is a huge
responsibility that needs careful planning and more careful execution. At Fast and Forward
Mehran Packers & Movers we assist you in the entire plan of this mammoth task and execute
it to your utmost satisfaction.

Moving a business needs to be viewed as a mission critical event. During the office moving
process, it is probable some segments of your company will be essentially out of business.
Files, computers, records and phones will be inaccessible. Your staff may not be able to
access the tools they require to serve your customers needs. Can you afford to trust
yourfuture to a moving company that may not perform?

We offer a customized office relocation service - seven days a week. Fast and Forward
Mehran Packers & Movers offers a customized office relocation service providing
professional advice and expertise, specialized equipment and careful handling of office
furniture, fittings and computer equipment. Pre-planning and a seven day week service
ensure moves are completed with minimal disruption to staff, management and business.
For your office relocation contacts us to discuss your requirements.

Household shifting

We at Mehran Packers & Movers provide complete relocation services including loading and
unloading, packing & unpacking services. We have expert workers who are well trained in
how to load and unload goods carefully. They are also experienced. They load and unload
goods carefully. They know well which items should be load first. They arrange packed
goods according to their sizes and nature.

Moving to a new home in another town? Then you need furniture movers who will move
your furniture professionally, Our Operational staff receives comprehensive in-house
training, and is graded according to ability, qualifications and achievement. This means you

38
know you're going to get the very best in professional service and personal care.
From the time you contact us to arrange your move, through to our personal follow up after
delivery to ensure furniture movers met your satisfaction, you'll find we're with you all the
way.

The Process . . .

 Packing Services
 Loading Services
 Transportation Services
 Unloading Services
 Unpacking Services
 Rearranging Services
 Moving Insurance Following flow process shows the performance of the service from

PACKERS N ORDER
CLIENTS
MOVERS CONFIRMATION

INSURANCE OF SERVICE
PACKING
GOODS PERFORMANCE

RE-
LOADING UNLOADING
ARRANGEMENT

FULFILLMENT
39 OF SERVICE
 initial step to the last step.

The process starts from the entrance of the customer in the office of the Mehran Packers n
Movers. Customer will provide the information according to his needs. After it, we offer
them 3 types of services from which he will select it according to his requirements. After the
selection of the service type, we’ll give him a order confirmation invoice. In next step, our
team will go to the client’s place and perform these 4 services:

• PACKING

• INSURANCE OF GOODS

• LOADING

• UNLOADING

• RE-ARRANGEMENT

• FULFILLMENT OF SERVICE

40
 APPLICATION FORM

CUSTOMER INFORMATION

Name: *

N.I.C *

Email:

Work Number: *

Contact No: *

How u Heard About us:

41
 MOVING INFORMATION

MOVE FROM MOVE TO

Address: * Address:

City: * City:

Province: * Province:

Postal Code: * Postal Code:

Floor: * Floor:

Type of move: Storage Type of move: Storage

Apt.1 Bedroom Apt. 1 Bedroom

Apt. 2 Bedroom Apt. 2 Bedroom

Apt. 3 Bedroom Apt. 3 Bedroom

House House

Business Business

MOVING DATE

AM

MOVING TIME
42 PM
 LIVING ROOM

Sofa Bed

Chairs Tables:

Picture Book case

Rugs Wall mirror

Lamp Air conditioner

T.V T.V Table

DVD Player Stereo

Bench Glass Top

DINING ROOM:

Dining table(wood) Dining table(glass)

Dining table(marble) Breakfast table

Baker’s Rack Rugs

APPLIANCES:

Vacuum cleaner Dish washer

Dryer Washing machine

43
 Refrigerator Freezer

Stove Ironing board

Microwave

MISC AND TOOLS:

Tool box Lawnmower

Aquarium Wall shelves

Sewing machine

OFFICE:

Computer Computer table

Printer Printer stand

Fax machine File cabinets

Office desk Office table

Quality Control

We have specialized packing techniques, our services are cost effective without
compromising with the quality.

Our priority is Safety of your goods

We have experienced and highly trained packing staff with strict supervisory checks and
accountability. Bedsides experienced Drivers with great sense of integrity and belonging to
ensure extra care and personalized handling in transit. We never encourage such concept
which may give rise to incidence of damages and also increase cost.

44
Following measures are taken by our company to ensure the quality:

1. Training and Development Of Employees

2. Maintenance of Trucks
3. Quality Raw Materials
4. Special and Effective Loading and Unloading Techniques
5. Safety Measures for Expensive Goods

CRITICAL RISK ANALYSIS:

MANAGEMENT RISKS:

 As we come with different idea and concept in Pakistan so in future there is

possibility anyone of our manager or business partner could be our
competitor.

 As in the Mehran packing and moving industry in Pakistan is emerging in

Pakistan. There is a lack of trained and efficient workers.

Measures to cope up with the risks:

 We have proper legal documentation with our managers/employees/business

partners. We have non-disclosure agreements and no one from within our
organization will be our competitor in next 15 years.

 Few Foreign trained personnel’s are hired. So we get two way benefits from
them. First to make our business run smoothly and second is to assist us in
different management decisions.

 We shall provide high security and incentives as well.

MARKETING RISKS:

 As our target market is narrow, so there are chances that our marketing
campaign could not reach to our targeted market.

45
  Through our marketing program people might not be convinced about
measures that we have made. They feel their child insecure in our camp and
hence pay no attention towards our promotional campaign.

Measures to cope up with risks:

 We have planned our marketing very wisely and extensively. We placed our
billboards in the best locations. Flyers and brochures are distributed in our
targeted market areas.

 Personal marketing and lecture delivering in different schools would be

effective to make sure parents about the security of their children.

OPERATIONAL RISKS:

As we know the current political, law and order situation of our country. It’s
very bad on security side. So our trucks will possibly face security problems.

Measures to cope up with the Risks:

Considering the current security conditions of the country. We are giving the
insurance facility to our clients which are mandatory. We are also using
guards that will go with on trucks.

FINANCIAL RISKS:

As there is global recession and economy is not going so well so it’s very hard
to attract the investors. So we will be unable to generate profits in first five
years. But we`ll try our level best to attract new investors so we will able to
open new offices in other cities. If we need finance in short run we can borrow
it from our friends and relatives.

46
INTERNAL SOURCES:

Ateeq-u-Rahman (C.E.O.) Rs.7,26,900

Shujauddin (CFO) Rs. 7,26,900

Sanaullah khan (Marketing manager) Rs. 7,26,900

Samiullah (HRM/operations) Rs. 7,26,900

Masood ahmed (Project manager) Rs. 7,26,900

Total (Team) Rs. 36,34,500

Investors Rs. 3,365,500

Grand Total Rs.7,000,000

EQUITY SHARE
Our Team Investors
Equity Share Rs. 36,34,500 Rs.3,365,500

47
START UP COST:

1. Land * 1 Kanal Plot 13,50000

2. Building* 300/Square ft
27,5000
Office.
3. Furniture and Fixture Used Furniture and
30,000
Fixture
4. Equipment/Machinery* 2 computers and 1
Photocopy machine, 29,500
Printers
5. Truck* 4 trucks on lease. 1,920,000
6. Working Capital For Office Per month 30,000
Total 36,34,500

48
WORKING:

1) The Total Land value/cost = 90,00000

30 years lease Down payment = 1000,000

Annual Lease = 3, 50,000

Total =13, 50000

2) Building 3 months Advance Rent =75000

(25000 per month)

Security =2, 00,000

Total =2, 75,000

3) Tracks 5 years leased at 15%

(1,800,000 Lac per truck)

Annual installments =7, 20,000

Down payment =3, 00,000

Total =1,920,000

PROFIT DIVISION:

The profit division will be according to the following formula.

 50% of the profit left after paying tax will go to the investors.
 50% of the profit amount left after paying tax will go to the Packers and
Movers team.

49
0perating cost:

Items Per year cost

1. Salary expense* 669,600

2. Utility expense* 135,600

3. Promotion expense* 719,200

4. Maintenance 10,000

5. Depreciation* 721,475

Total 2,255,875

SALARIES EXPENSE:

Items No. Pay/person Total/month Total/year

Administrative 03 5,000 15,000 180,000
staff
Transport Labor 04 3700 14,800 177,600

Drivers 04 6,500 26,000 312,000

Total 55,800 669,600

50
Total projected salaries for five years:

Total Projected salaries for 1st year = 669,600

We increase salaries 10 % every years to project 5 year salaries.

2nd year = 66,960+669,600 = 736,560

3rd year= 73,656+ 736,560 =810,216

4th year = 81,021+810,216 =891,237

5th year = 89,123+891,237 =980360

Utility expenses:

Item Bill/month Total/year

Electric bills 7,500 90,000

Telephone 2,200 26,400

bills

Internet usage 1,600 19,200

bills

Total 11,300 135,600

Note:

The utility expense increased by 15% every year

51
Promotion Expense:

1) Print media:

Pamphlet prints

(30,000 pamphlets at price of 15) = 450,000

News paper adds

(Dawn and Jang on Sunday) = 118,800/three months

1) Cable adds:

(Saturday after 8pm to 10pm

4 time play) = 150,400/two months

Total 719,200

Depreciation cost:

Equipment/ Machinery

(Coat 29,500 depreciation rates 5%) = 1,475

Trucks

(10% depreciation 180,000per truck into 4) = 720,000

Total =721,475

Projected Sales/Revenue:

Monthly sales are show as average sale of 1200 regular boxes, 550 medium
boxes, 350 extra large boxes, 375 wardrobe boxes.

52
 Regular box (1200 into Rs400) 480,000

Medium box (550 intoRs500) 275,000

Extra large box (350 into Rs 600) 210,000

Dish box (300 into Rs800) 240,000

Wardrobe box (375 into Rs800) 300,000

Total Rs1, 505000

Calculation of kilometers:

65km/ per day into 4 trucks = 260km /day

260km into 30 days = 7,800km/month

7800km into 12months = 93600km/annually

Total K.M covers by Trucks at cost

(93,600 @ cost of Rs 50/km) Rs 4,680,000

Other Costs:

Bubble warping cost = (Rs 60/ft into1125) = Rs 67,500

Wrapping paper = (Rs 180/pound into895) = Rs 161,100

Tape = (Rs 160/ roll into 750) = Rs 120,000

Total = Rs348, 600

53
1st Year Projected sales = Rs 6,533,600

Sales increase by 2% annually

2nd Year Projected sales = Rs 6,664,272

3rdYear Projected sales = Rs 6,797,557

4th Year Projected sales = Rs 6,933,508

5th Year Projected sales = Rs 7,072178

54
 Mehran PACKERS N MOVERS
PRO-FORMA INCOME STATEMENT
AS OF YEAR END

ACCOUNT YEARS
1st 2nd 3rd 4th 5th
Sales/revenue Rs 6,533,600 Rs 6,664,272 Rs 6,797,557 Rs 6,933,508 Rs 7,072178

-operating expenses
1. Salary expense! Rs 669,600 Rs 736,560 Rs 810,216 Rs 891,237 Rs 980360

2. Utility expense Rs 135,600 Rs 155,940 Rs 179,331 Rs 206230 Rs 237,164

3. Promotion Rs 719,200 Rs 719,200 Rs 719,200 Rs 719,200 Rs 719,200
expense

4. Maintenance Rs 10,000 Rs 12,000 Rs 14,000 Rs 16,000 Rs 18,000

expense

5. Depreciation Rs 721,475 Rs 721,475 Rs 721,475 Rs 721,475 Rs 721,475

Total Rs 2,255,875 Rs 2,345,175 Rs 2,444,222 Rs 2,554,142 Rs 2,676,199

EBIT(earnings before Rs 4,277,725 Rs 4,319,097 Rs 4,353,335 Rs 4,379,366 Rs 4,395,979
income tax)
-income tax Rs 812,767 Rs 820,628 Rs 827,133 Rs 832,079 Rs 835,236
(19% income tax)
Rs 3,464,958 Rs 3,498,469 Rs 3,526,202 Rs 3,547,287 Rs 3,560,743
EAT(earnings after tax)

55
 Mehran PACKERS N MOVERS
PRO-FORMA BALANCE SHEET
AS AT DECEMBER 31,

1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR
Current Payable
Account payable/Tax Rs 812,767 Rs 820,628 Rs 827,133 Rs 832,079 Rs 835,236
payable
Total current liabilities Rs 812,767 Rs 820,628 Rs 827,133 Rs 832,079 Rs 835,236
Capital
CEO 726,900 1,073,395 1,423,241 1,775,861 2,130,589
CFO 726,900 1,073,395 1,423,241 1,775,861 2,130,589
Marketing manager 726,900 1,073,395 1,423,241 1,775,861 2,130,589
Project manager 726,900 1,073,395 1,423,241 1,775,861 2,130,589

HR/Operations manager 726,900 1,073,395 1,423,241 1,775,861 2,130,589

Investors 3,365,500 5,097,979 6,847,213 8,610,314 10,383,957
Total capital 7,000,000 10,46,4954 13,963,418 17,489,619 21,036,90
Net profit 3,464,958 3,498,469 3,526,202 3,547,287 3,560,743
Net Equity 10,464,958 13,963,423 17,489,620 21,036,906 24,597,645
Rs.11,277,725/- Rs.14,784,051/- Rs.18,316,753/- Rs.21,868,985/- Rs.25,432,881/-

1st Year 2nd Year 3rd Year 4th Year 5th Year

Current Assets

Cash in hand 1196612 2727663 2896452 4359473 5812671

Cash at banks 1196612 2727663 2896452 4359473 5812671
Total current assets 2393225 5455326 5792908 8718947 11625343
Fixed Assets

Building 275000 288750 3031875 3183468 3342641

Trucks 720000 7560000 7938000 8334900 8751645
equipments 29500 30975 32523 34149 35856
Furniture and fixture 30000 31500 33075 34728 36464
land 1350000 1417500 1488375 1562793 1640932
Total fixed assets 8884500 9328725 12523848 13150038 13807538

56
Total assets Rs.11277725/- Rs.14784051/- Rs.18316753/- Rs.2186898/- Rs.25432881/-

RATIOS

Year

No. Ratios Formula 1st 2nd 3rd 4th 5th

1. Current Ratio C.Assets/C.Liability 2.945 6.647 7.0 10.4 13.91

Net working C.assets-
2. capital C.liabilities/T.assets 0.140 3.13 0.271 0.366 0.424
Debt equity Total debt/total
3. ratio equity 0.321 0.365 0.391 0.409 0.422
Operating
expense/net Any Operating
4. sale expense×100/ net sale 10.24 10.52 11.9 12.85 13.86
Gross profit
5. margin Gross profit/net sales 0.65 0.64 0.640 0.631 0.621
Net profit
6. margin Net profit/net sales 0.530 0.524 0.518 0.511 0.503
Net profit
7. margin Net profit×100/sales 53.032 52.49 51.88 51.16 50.34

57