Pen Plan

Cost structure for the first 6 months(based on 1 month projected sale of 80,000 units)

Allocation | amount |

Cost of outsourcing | Rs6 |

Transportation | Rs0.625 |

Electricity | Rs0.035 |

Miscellaneous | Rs0.0625 |

Selling expenses | Rs0.125 |

Delivery charges | Rs0.031 |

commission | Rs0.5 |

Salaries to staff | Rs0.15 |

stationary | Rs0.0125 |

Legal expense | Rs0.9 |

Cost/unit | Rs8.10 |

Initial capital

Initial capital require for the business as mentioned earlier is Rs 60 lacs. The source of the same mentioned below:

Sources | Rs |

Shailendra Chaturvedi | 5 Lac |

Akash Jain | 5 Lac |

Gaurav Surekha | 5 Lac |

Nitin Bhandari | 5 Lac |

Abhishek kumar | 5 Lac |

Ritesh Kothari | 5 Lac |

Abhishek Jha | 5 Lac |

Bank Loan | 25 Lac |

ESTIMATION OF PROJECT CASH FLOWS

Particulars | 0 | 1 | 2 | 3 | 4 |

Initial investment (Incremental cash outflow) | 30,00,000 | | 2,00,000 | 5,00,000 | |

Furnitures & Fixtures | 20,000 | | | | |

Cost of new computer system | 25,000 | | | | |

Add:working capital | 1,00,000 | | | | |

Net capital investment | 41,45,000 | | | | |

operating cash flows | | | | | |

Units sold | | 500000 | 1200000 | 20,00,000 | 22,00,000 |

Sales revenue | | 45,00,000 (Rs9/unit) | 14400000 ( Rs12/unit) | 3,00,00,000 (Rs 15/unit) | 33000000 (Rs15/unit) |

Less:cost | | 4,05,000 (Rs8.10/unit) | 12960000 ( Rs10.80) | 27000000 ( Rs13.5/unit) | 29700000(Rs13.5/unit) |

EBDT | | 45000 | 1440000 | 3000000 | 3300000 |

Less:dep | | 7,000 | 27,000 | 77000 | 77000 |

EBT | | 38000 | 1437300 | 2923000 | 3223000 |

Less:tax@35% | | 13300 | 503550 | 1023050 | 1128050 |

EAT | | 24700 | 933750 | 1899950 | 2094950 |

Add:depreciation | | 7000 | 27000 | 77000 | 77000 |

Total operating cash flow | | 31700 | 960750 | 1976950 | 2171950 |

Calculation of NPV@12%

Year | Cash Inflows | PV Factor@ 12% | Total |

1 | 31700 | 0.893 | 28308 |

2 | 960750...