bdp report on san noodles, apex college

7/23/2019 Bdp Report on SAN Noodles, Apex College

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Contents

Chapter 1: Background........................................................................................................4

1.1 Introduction................................................................................................................41.2 Company ownership..................................................................................................5

1.3 Location and premises...............................................................................................5

1.4 Startup summary........................................................................................................5

1.5 ision.........................................................................................................................!

1.! "ission statement......................................................................................................!

1.# $%&ecti'es...................................................................................................................!

1.( Lega) *ramework........................................................................................................#

1.+ S,$- na)ysis..........................................................................................................(

Chapter 2: $rgani/ation nd "anagement -eam.............................................................10

2.1. "anagement Summary...........................................................................................10

2.2. $rgani/ationa) Structure.........................................................................................10

Chapter 3: roducts and Ser'ices......................................................................................14

3.1. roduct istory.......................................................................................................14

3.2. roduct eatures......................................................................................................14

3.3. roduction )ow iagram o* the unit.....................................................................15

3.4. roduct ricing........................................................................................................1#

3.5. Competiti'e edge....................................................................................................1#

3.!. uture )ans.............................................................................................................1#

Chapter 4: "arket and Competitions.................................................................................1(

4.1. Industry and Business $ut)ook...............................................................................1(

4.2. rowth otentia)ity.................................................................................................1+

4.3. "arket Segmentation and -argeting.......................................................................1+4.4. -argeting..................................................................................................................21

4.5. ositioning..............................................................................................................21

4.!. Competition.............................................................................................................21

Chapter 5: Competiti'e na)ysis.......................................................................................22

5.1. orter6s i'e orces "ode)7Competiti'e na)ysis.................................................22

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Chapter !: "arketing nd Sa)es )an................................................................................23

!.1. "arketing mi8.........................................................................................................23

Chapter #: inancia) )an...................................................................................................25

#.1. ssumptions............................................................................................................25

#.2 inancia) detai)s o* startup e8penses........................................................................2#

#.3 ro&ected Income Statement:...................................................................................2(

#.4 ro&ected Ba)ance Sheet:..........................................................................................2(

#.5 ro&ected Cash *)ow Statement................................................................................2(

#.# 9 I;; < "I;;:.................................................................................................31

#.( ay%ack eriod:........................................................................................................31

Chapter (: Critica) ;isk and Contingencies.......................................................................32

(.1 Interna) ;isks:..........................................................................................................32

(.2 =8terna) ;isks:.........................................................................................................33

Chapter +: uture )an and =8it Strategy..........................................................................34

+.1. uture )an..............................................................................................................34

+.2. =8it Strategy............................................................................................................34

99=>.............................................................................................................................35

1. Capita) ;e?uirement..................................................................................................35

Capita) Structure............................................................................................................3!,orking Capita) Structure..............................................................................................3!

2 S9 9ood)es Income Statement................................................................................3#

3. S9 9ood)es Ba)ance Sheet as on @ear =nd *or 5 @ears.........................................40

4. S9 9ood)es Cash )ow Statement.........................................................................42

5. ;atio Summary........................................................................................................44

SC=AL=S....................................................................................................................45

1. Schedu)e or Sa)es orecast......................................................................................45

2.Schedu)e or irect "ateria)......................................................................................45

3.Schedu)e *or irect La%or...........................................................................................4!

Schedu)e *or In'entory o* inished oods....................................................................4!

In'entory o* inished oods in Anits.......................................................................4!

4. In'entory o* inished oods in ;s........................................................................4#

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5. Schedu)e *or in'entory o* raw materia)......................................................................4#

In'entory o* ;aw "ateria) in Anit............................................................................4#

!. In'entory o* ;aw "ateria) In ;s...........................................................................4(

#. epreciation schedu)e................................................................................................4+

(. ,orking Capita) Loan morti/ation Schedu)e..........................................................54

+. -erm Loan morti/ation Schedu)e........................................................................55

11. Schedu)e *or d'ertisement.....................................................................................5(

12. Schedu)e *or ccount ;ecei'a%)e............................................................................5+

13. -ota) 9et i8ed ssets Schedu)e..............................................................................!0

14. Schedu)e *or ccount aya%)e.................................................................................!2

15. ;etained =arnings Schedu)e.....................................................................................!3

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Chapter 1: Background

1.1 Introduction

9epa) with a popu)ation o* around 30 mi))ion possesses a huge "C industry or ast"o'ing Consumer oods6 industry which amounts to more than a %i))ion do))ar. -his

industry is %e)ie'ed to %e growing at a 'ery remarka%)e pace. ,hi)e the o'era)) economy

o* 9epa) is growing at the rate o* 3D to 4D the "C sector in the country is growing

at a high year)y rate o* o'er 20 D. -here*ore 9epa)6s "C industry is growing at a

'ery *aster speed than the o'era)) economy o* the country.

Stick nood)e is one o* the *ast growing "C industries in 9epa). 9ood)es originated in

northern China during the )ast ha)* o* the an ynasty 20! B.C.=.E220 C.=. when)arge7sca)e wheat grinding %ecame a'ai)a%)e pro'iding *)our to make mian mein or mi

the Chinese word *or nood)e. 9epa) is the )eader 1 st in manu*acturing nood)es among

the S;C countries. 9epa)Fs instant nood)es production %egan in the ear)y 1+(0s when

okhara7%ased andaki 9ood)es stepped into a 'irgin market with ;ara. It a)so )aunched

stick nood)es in the market. Soon a*ter that 'arious sma)) cottages industries &umped into

the stick nood)es manu*acturing %usiness. Current)y there are an amp)e num%er o* sma))

medium enterprises as we)) as )arge enterprises manu*acturing stick nood)es within and

outside the Gathmandu 'a))ey.

S9 9ood)es is a stick nood)es manu*acturing company dedicated in producing ?ua)ity

products and making it a'ai)a%)e at a**orda%)e price. -he unit wi)) %e )ocated at ;amkot

Sitapai)a Gathmandu. -he ma&or reason %ehind se)ection o* this area as the industry set

up /one isH it %eing )ess popu)ated with 'ery *ew houses and a%sence o* any other

industries in that periphery. Simi)ar)y it is near to the ;ingroad making it easier in the

de)i'ering as we)) as purchasing process. $ur main product wi)) %e stick nood)es. resh

nood)es are an e8truded product made o* maida. -hey are )ong thread7)ike o* 0.22 to 0.4

mm. thickness. -his is an eata%)e *ood item under instant *ood products and 'ery popu)ar

now7a7days as %reak7*ast *ood )unch and dinner. It is one o* the most con'entiona) *oods

a'ai)a%)e in the market.

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1.2 Company ownership

-he company wi)) %e esta%)ished as a So)e roprietorship Business. -he *actory wi)) %e

operated under the super'ision o* "r. 9irma) radhan who has %een associated with the

%usiness *or the past 10 years and has marketing e8perience. It wi)) %e owned and

managed %y "s. ;o&ina Shrestha an "B graduate with 5 years working e8perience

with a%ur 9epa).

1.3 Location and premises

-he *actory wi)) %e )ocated at ;amkot Sitapai)a Gathmandu. -he main reason %ehind

se)ection o* this )ocation is the area %eing )ess popu)ated with 'ery *ew residentia) houses

and no other *actory has %een set up in that area. Simi)ar)y there a sma)) stream o*

*)owing water &ust %e)ow the *actory set up area which can %e used *or the *actory

operation purposes. espite the area %eing )ess popu)ated the *actory site is at a distance

o* 1 Gm. *rom ;ingroad this wi)) make it easier *or de)i'ering and procurement process.

1.4 Startup summary

-he tota) capita) and working capita) re?uirement *or the *actory set up is ;s. !0#5000

and ;s. 21!4040 respecti'e)y. 40D o* the tota) re?uirement is *inanced %y the e?uity i.e.

the owner6s contri%ution whi)e the remaining !0D is *inanced %y %ank )oan. -he )oan wi))

%e taken *rom ima)yan Bank Ltd. and it wi)) in two *orms i.e. term )oan and working

capita) )oan. -he term )oan wi)) %e taken +.#5D with amorti/ation period o* 5 years.

whi)e the working capita) )oan wi)) %e taken 10.5D which wi)) %e paid within 1 year.

-he start up e8penses wi)) inc)ude )ega) e8penses pre7operating sa)aries o**ice supp)ies

purchase o* machineries and )ike.

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Start up capital

equity loan

ig. Start up in'estment re?uirement

1. !ision

$ur 'ision is to %ecome J-he %est packaged *ood company ser'ing Internationa)

Standard roducts *or the utmost satis*action o* its 'a)ued customersK. ,e a)so en'ision

e8panding our %usiness outside the nationa) territory %y e8porting our products a%road.

part *rom %usiness e8pansion product )ine e8pansion is a)so what we p)an to achie'e

tomato ketchup mayonnaise soya sauce and *)a'ored stick nood)es.

1." #ission statement

$ur "ission is to sustain growth %y pro'iding high product ?ua)ity encouraging

inno'ation and pro'iding e8ce))ent customer ser'ice to our customers.

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1.$ %&'ecti(es

,e want to go *orward gaining strength in our particu)ar markets and %eing good at what

we do in e'ery respect. ,e see that the key is to stick to the %asic and to pro'ide premium

?ua)ity products tai)ored to meet the changing market needs. ,e see ourse)'es as

remaining in the 9epa)i *oods market and pro'iding other *antastic products in this

category. $ur company phi)osophy is to respond ?uick)y to the changing en'ironment

encourage )earning and %e *)e8i%)e in adopting new techno)ogies and techni?ue in our

manu*acturing process with particu)ar emphasis on product ?ua)ity and *ood sa*ety.

-he ma&or o%&ecti'es o* S9 9ood)es are )isted in the points gi'en %e)ow:

-o manu*acture high ?ua)ity stick nood)es and cater to the taste %uds o* the

customers. -o *ocus on impro'ing the %est product ?ua)ity sa*ety o* *oods consumption as

we)) as ha'ing en'ironmenta) concerns.

-o generate re'enue and occupy su%stantia) market share.

-o ensure proper uti)i/ation o* a'ai)a%)e resources.

-o increase the sa)es %y 5D in second year and %y 1(D therea*ter.

-o e8pand %usiness outside the nationa) territory.

-o e8pand the product )ine and manu*acture soya sauce tomato ketchup *)a'ored

nood)es and mayonnaise.

1.) Lega* +ramework

ccording to Section 3 o* the ri'ate irm ;egistration ct 2014 the so)e proprietorship

%usiness institution needs to %e registered either in epartment o* Commerce in case o*

commerce re)ated *irm epartment o* Cottage and ;ura) Industry in the case o* cottage

and rura) industry and epartment o* Industry *or any other industry.

S9 9ood)es %eing a so)e proprietorship *irm operating under nood)es industry wi)) %e

registered in epartment o* Industry. or the purpose o* registration an app)ication in the

prescri%ed )ega) *ormat a)ong with the prescri%ed o**icia) *ee o* ;s. 15000 wi)) %e

su%mitted. -he app)ication wi)) contain the *o))owing in*ormation:

i. -he name o* the ri'ate irm

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ii. -he address o* the irm

iii. -he o%&ecti'es *unctions and the particu)ars o* goods or commodity to %e transacted

%y the pri'ate *irm.

i'. -he name and address o* the owner and the name o* hisher *ather mother and

grand*ather grandmother.

Certi*ied copy o* the Citi/enship Certi*icate wi)) %e presented a)ong with other essentia)

documents *or the registration o* the *irm.

pri'ate *irm6s duration is three years a*ter which the *irm needs to %e renewed. -he

renewa) *ee o* ;s. 2300 wi)) %e paid.

$nce the company is registered the ne8t steps is to take 9 num%er that is ermanent

account num%er *rom In)and re'enue epartment which is situated at La/impat. or this

necessary documents are: pp)ication *ormCopy o* the citi/enship certi*icate o* the

owner Copy o* the company*irm registration certi*icate two passport si/e photo o* the

owner and and drawn sketch o* the %usiness )ocation.

1., S-% /na*ysis

-he Strengths ,eaknesses $pportunities and -hreats S,$- ana)ysis guides us to

identi*y the positi'es and negati'es inside and outside o* our organi/ation. rogram

directors po)icy groups and management teams can use this resource to he)p with %oth

strategic p)anning and decision7making. S,$- ana)ysis wi)) pro'ide perspecti'e and

re'ea) connections and areas *or action.

Strength:

=8perienced management team

Low cost o* product

igher understanding o* target customers

ea)thy re)ation with %uyers and supp)iers

-eakness:

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Low )e'e) o* ad'ertisement and promotiona) acti'ities

9o di**erentiation in *)a'or

Low distri%ution network compared to others

Low %rand )oya)ty

%pportunity:

rowing package and canned *ood market

i'ersi*ication

Large domestic markets

=8port markets

hreat:

igh competition

rice wars with esta%)ished %rands

Low %arriers to enter in the %usiness

Less product mi8 un)ike J"aggiK which has nood)es soup pasta etc

"edia generated news a%out hea)th issues

-hreat o* su%stitutes

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Chapter 2: %rgani0ation /nd #anagement eam

2.1. #anagement Summary

-he company wi)) %e owned and managed %y "s. ;o&ina Shrestha an "B graduate

with 5 years o* working e8perience with a%ur 9epa). -he *actory wi)) %e operated under

the super'ision o* "r. 9irma) radhan an "B graduate who ha'e %een associated with

the nood)es industry *or )ast 10 years and ha'e marketing e8perience as we)). -he owner

wi)) %e managing and o'erseeing the entire %usiness. She wi)) %e a)so ha'e the *ina)

authority o* appro'a) or decision making as we)) as wi)) %e responsi%)e *or strategic

p)anning o* the entire *irm. )) the other departments o* the *irm wi)) ha'e to report to the

owner. dditiona) management personne) wi)) %e hired as the %usiness grows in the near

*uture.

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ManagingDirector

FactorySuperviso

r

SalesPersonnel

Driver

MaleWorkers

FemaleWorkers

Accountant

Receptionist

SecurityGuard

Ofceelper

2.2. %rgani0ationa* Structure

ig. %rgani0ationa* structure o+ S/ ood*es

"anaging irector

"s. ;o&ina Shrestha an "B graduate with 5 years o* working e8perience with

a%ur 9epa) wi)) %e designated the post o* managing director. -he managing

director is the person at the highest )e'e) o* the organi/ationa) hierarchy. She wi))

%e responsi%)e *or managing and o'erseeing the entire %usiness. She wi)) %e a)so

ha'e the *ina) authority o* appro'a) or decision making as we)) as wi)) %e

responsi%)e *or strategic p)anning o* the entire agency. )) the other departments

o* the agency wou)d ha'e to report to the "anaging irector.

-he other duties o* the managing director areH

Se)ecting hiring and super'ising the o**ice sta**s.

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"aintaining )ong term and hea)thy re)ationship with the customer

supp)iers and the )ega) authorities.

reparing the &o% description schedu)e and assigning duties and

responsi%i)ities to the emp)oyees as per the post he)d %y them.

esigning the work*)ow p)an and schedu)es o* the *actory and super'ising

the *actory operations with the he)p o* *actory super'isor.

reparing the marketing strategies.

actory Super'isor

"r. 9irma) radhan an "B graduate who ha'e %een associated with the

nood)es industry *or past 10 years and ha'e marketing e8perience as we)) wi)) %e

ho)ding the post o* actory Super'isor.

e wi)) %e responsi%)e *orH

Se)ecting and hiring the *actory workers.

uiding super'ising and pro'ing training to the ma)e and *ema)e workers.

ro'iding suggestions and guidance to the "anaging irector in the

decision making process.

roper maintenance o* the *actory machineries and e?uipments.

uiding the sa)es personne) on how to dea) with the who)esa)ers.

"oti'ating the workers to put in their %est e**orts.

ccountant

person with at )east Bache)ors degree in the management *ie)d or at )east

Intermediate degree with 2 years e8perience wi)) %e hired as an accountant.

She wi)) %e accounta%)e *or *unctions )ikeH

inancia) p)anning

ccount keeping

Bi))ing the c)ients

"aking payments to the supp)iers

"aintain the emp)oyee sa)ary sheet

reparation o* *inancia) statements o* the agency In'entory management

Sa)es ersonne)

person with at )east M2 ?ua)i*ication and 1 year o* e8perience in the re)ated *ie)d

wi)) %e hired as the sa)es personne). e wi)) %e responsi%)e *or de)i'ering the

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Chapter 3: roducts and Ser(ices

3.1. roduct 5istory

9ood)es originated in northern China during the )ast ha)* o* the an ynasty 20!

B.C.=.E220 C.=. when )arge7sca)e wheat grinding %ecame a'ai)a%)e pro'iding *)our to

make mian mein or mi the Chinese word *or nood)e. 9epa) is the )eader 1st in

manu*acturing nood)es among the S;C countries. 9epa)Fs instant nood)es production

%egan in the ear)y 1+(0s when okhara7%ased andaki 9ood)es stepped into a 'irgin

market with ;ara. It a)so )aunched stick nood)es in the market. Soon a*ter that 'arious

sma)) cottages industries &umped into the stick nood)es manu*acturing %usiness. Current)y

there are an amp)e num%er o* sma)) medium enterprises as we)) as )arge enterprises

manu*acturing stick nood)es within and outside the Gathmandu 'a))ey.

3.2. roduct eatures

S9 9ood)es wi)) %e manu*acturing JStick 9ood)esK packaged in 1 Gg. packets. Stick

nood)es are an e8truded product made o* JmaidaK. -hey are )ong thread7)ike o* 0.22 to

0.4 mm. thickness. -he ?ua)ity o* the manu*actured nood)es wi)) %e the ma&or concern o*

the %usiness. or this purpose the *actory super'isor wi)) pro'ide training to the *actory

workers and audit the conditioning o* the machineries on a time)y %asis. Simi)ar)y the

workers wi)) conduct their duties and operation under the contro) and guidance o* the

*actory super'isor.

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3.3. roduction *ow 6iagram o+ the unit

-he production process has %een )isted in the points gi'en %e)owH

)our storageIn this step the main raw materia) re?uired *or the manu*acturing i.e *)our wi)) %e

%ought as per the re?uirement and staking o* the *)our wi)) %e done in a proper

manner in order to reduce any possi%)e wastages.

,ooden pa))ets wi)) %e used under the *)our sacks in order to a'oid moisture

pickup.

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ough making

u)'eri/er "i8er wi)) %e used *or mi8ing o* *)our water and other ingredients.

uargum Sodium tri7po)y phosphate otassium Car%onate Sodium Ch)oride

wi)) %e used *or impro'ing the ?ua)ity and Sodium Ben/oate to e8tend the se)*

)i*e. -he usage o* these ingredients wi)) a)so he)p in minimi/ation o* wastages.

Sheeting and cutting

Sheeting and cutting wi)) %e per*ormed with the he)p o* cutting machine.

roo'ed SS sheet wi)) %e pro'ided o'er the wooden parts o* ta%)e and machine to

a'oid contact %etween dough and wood. -his wi)) enhance the hygiene )e'e) and

minimi/ation scrapping waste.

rying

Co)d air drying in room with the he)p o* a *an at N20oC wi)) %e adopted.

thermometer in side the room wi)) %e hanged *or checking the temperature. -his

wi)) sa'e time as we)) as minimi/e the space re?uirement *or drying and

dependence on sunny days. rrangement wi)) %e made *or hot air drying with the

he)p o* hot air %)ower at N30oC in p)ace o* sun drying in the partitioned

e8isting room.

o)ythene sheet wi)) %e spread under the hanging sticks during drying to a'oid

contamination to recyc)a%)e waste.a))s cei)ing wi)) %e pro'ided and c)eaning schedu)e wi)) %e maintained at e'ery

a)ternate day.

,eighing and packaging

-he manu*actured stick nood)es wi)) %e weighed and packed %y the *actory

workers with the he)p o* use o* weighing machine and sea)ing machine.

-he 1 kg packets wi)) %e then stacked inside the paper %o8es and these %o8es wi))

%e de)i'ered to the customers.

-he production process mentioned wi)) not on)y *ocus on producing the nood)es %ut a)so

wi)) %e assuring ?ua)ity and hygiene. s in each step the maintaining ?ua)ity and hygiene

wi)) %e a ma&or concern o* S9 9ood)es.

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3.4. roduct ricing

-he pricing o* the product wi)) %e done on the %asis o* the cost in'o)'ed in the

manu*acturing process and certain percentage o* margin wi)) %e added to the cost o*

production to deri'e the se))ing price. -he other *actor that wi)) %e considered in the

pricing strategy is on the %asis o* pre'ai)ing market trend. iscount wi)) %e pro'ided to

the who)esa)ers.

3.. Competiti(e edge

ssurance o* ?ua)ity and hygiene in the production process wi)) pro'ide the competiti'e

edge to S9 9ood)es. -he )ocation o* the *actory wi)) %e another competiti'e edge as

the *actory site is a%out a ki)ometer away *rom the ;ingroad making it easier *or de)i'ery

and procurement process. Simi)ar)y the a%sence o* other simi)ar industry in the area wi))

enhance the possi%i)ity to co'er the )oca) market.

uman resource is the ma&or asset o* any organi/ationH they )ead the organi/ation to the

path o* success and prosperity. =**iciency e8perience and ?ua)i*ication o* human

resource are the *actors that pro'ide an organi/ation competiti'e ad'antage o'er its

competitors. ence the ?ua)i*ied and e8perienced work*orce wi)) pro'ide the competiti'e

edge to S9 9ood)es.

3.". uture *ans

*ter 5 years o* operation S9 9ood)es p)an to e8pand the market as we)) as the product

)ine. Since nood)es is priority e8port potentia) agro product according to 9-IS 9epa)

-rade Integration Strategy we p)an to e8pand our market %eyond the nationa) %oundaries

%y e8porting the product. =8pansion o* product )ine is another goa). ,e p)an to enhance

our product port*o)io %y manu*acturing tomato ketchup soya sauce mayonnaise and

*)a'ored nood)es.

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Chapter 4: #arket and Competitions

4.1. Industry and Business %ut*ook

Stick nood)e is one o* the *ast growing "C industries in 9epa). 9ood)es originated in

northern China during the )ast ha)* o* the an ynasty 20! B.C.=.E220 C.=. when

)arge7sca)e wheat grinding %ecame a'ai)a%)e pro'iding *)our to make mian mein or mi

the Chinese word *or nood)e. 9epa) is the )eader 1 st in manu*acturing nood)es among

the S;C countries. 9epa)Fs instant nood)es production %egan in the ear)y 1+(0s when

okhara7%ased andaki 9ood)es stepped into a 'irgin market with ;ara. It a)so )aunched

stick nood)es in the market. Soon a*ter that 'arious sma)) cottages industries &umped into

the stick nood)es manu*acturing %usiness. Current)y there are an amp)e num%er o* sma))

medium enterprises as we)) as )arge enterprises manu*acturing stick nood)es within and

outside the Gathmandu 'a))ey.

-he demand o* stick nood)es has %een increasing rapid)y in 9epa) as the num%er o*

restaurants ca*es and hote)s are growing in a 'ery *ast pace. ,hether it %e sma)) )oca)

restaurant or %ig restaurants and ca*es dishes made *rom stick nood)es is a'ai)a%)e in

e'ery menu. -he dishes made *rom stick nood)es 'ary *rom chowmine spring ro))

thukpa hakka nood)es Chinese chopsey merican chopsey nood)es sa)ad and many

more. It can %e consumed *or %reak*ast )unch as we)) as dinner.

part *rom commercia) use *or restaurants and ca*es stick nood)es is %ecoming *amous

among the 9epa)ese *ami)ies. s 9epa)ese today ha'e %ecome 'ery %usy they do not

ha'e time to cook *u)) mea) so they opt *or nood)es as it is hea)thy as we)) as peop)e can

prepare the nood)es as per their taste %uds and pre*erences. Simi)ar)y it is cheaper than

other packaged *ood a'ai)a%)e in the market.

Stick nood)es are suita%)e *or 'egetarian as we)) as non 'egetarian. s peop)e can add

'egeta%)es and meat products to the nood)es as per their pre*erence and cook it in

%reak*ast )unch and dinner. Because o* this *)e8i%i)ity a)so stick nood)es are %ecoming

*amous in the 9epa)ese *ami)ies.

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4.2. 7rowth otentia*ity

9ood)es and chowmein a ready7to7eat *ood item is 'ery popu)ar in de'e)oped countries

and now it has created good market potentia) in our country a)so and is %ecoming a

popu)ar item. -he num%er o* restaurants ca*es and hote) are increasing rapid)y. ,ith the

increase in their num%er the demand *or stick nood)es wi)) increase as di**erent dishes

made *rom stick nood)es are a'ai)a%)e in e'ery menu o* e'ery %ig or sma)) restaurants or

ca*es or hote)s.

Stick nood)es are %ecoming *amous among the 9epa)ese househo)ds as we)). ue to their

%usy )i*esty)e peop)e are not %eing a%)e to cook *u)) mea) e'eryday so they opt *or stick

nood)es. s stick nood)es can %e prepared as per the taste and pre*erences. It is suita%)e

*or %oth 'egetarian and non 'egetarian. $ther attracti'e *eature o* stick nood)es is it is

cheaper than other packaged *ood a'ai)a%)e in the market. ence there certain)y is growth

potentia) *or the stick nood)es in 9epa)ese market.

-he *actors go'erning its demand are:

Increasing popu)ation o* the country.

;apid industria)i/ation in the country.

Increase in the purchasing capacity o* the peop)e.

ura%i)ity o* the product. Change in peop)e6s eating ha%its especia))y the younger generation.

Con'enience o* preparation.

)e8i%i)ity in preparation as per the taste %uds.

Geeping in 'iew the a%o'e *actors the demand o* this product is )ike)y to increase

mani*o)d in the coming years.

4.3. #arket Segmentation and argeting

ccording to a census conducted in 2011 Gathmandu metropo)is a)one has 2.5 mi))ion

inha%itants and the agg)omerate has a popu)ation o* more than 3 mi))ion inha%itants. -he

metropo)itan city area is 50.!# s?uare ki)ometres 1+.5! s? mi and has a popu)ation

density o* 3000per kmO and 1#000 per km s?uare in city. -here are more than 5 )akh

*ami)ies residing in Gathmandu itse)*. -he a'ai)a%i)ity o* in*rastructura) *aci)ities in

2 | a g e


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Gathmandu has attracted peop)e outside the 'a))ey. -his has made the city more

popu)ated and the num%er o* houses and %ui)ding has increased rapid)y. It is 'isi%)e to us

that the in e'ery house there is a sma)) retai) out)ets se))ing wide range o* products.

Simi)ar)y the num%er o* who)esa)ers is a)so increasing. ,ith the increase in popu)ation in

the Gathmandu city peop)e see scope in opening restaurants and ca*es )eading to rapid

increment in num%er o* restaurants ca*es and hote)s in the city.

-he segmentation wi)) %e done on the %asis o* the type o* %usiness.

,ho)esa)er

-he num%er o* *ood who)esa)ers is increasing rapid)y in the Gathmandu city. -he

who)esa)ers wi)) %e the ma&or segment *or our %usiness. s the who)esa)ers act as

means o* reaching the retai) out)ets and u)timate)y the consumers. ;etai)ers

,ith the increase in popu)ation the num%er o* houses in the Gathmandu city ha'e

increased so has the num%er o* sma)) retai) out)ets se))ing *ood items. ,e see sma))

retai) out)ets in e'ery nooks and corners. ,e can supp)y the stick nood)es to these

retai) out)ets howe'er it wi)) %e a cum%ersome process reaching and supp)ying the

products to these sma)) shops.

Big restaurants

;estaurant %usiness is %ooming in the city. "ost o* the %ig restaurants ha'e 'arious

dishes made *rom stick nood)es in their menu. Bigger the restaurant more the num%er

o* customer more the re?uirement o* raw materia)s i.e. stick nood)es. -his wi))

u)timate)y increase our sa)es.

Sma)) restaurants

Sma)) restaurants and ca*es are mushrooming in the city. ,e can see these sma)) ca*es

and restaurants in e'ery nooks and corners. $ne o* the main dishes ser'ed in these

restaurants is Chowmine which is cooked *rom the stick nood)es.

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4.4. argeting

$* the a%o'e segmented market ma&or *ocus wi)) %e on the segmentsH who)esa)ers and %ig

restaurants. -he reason %ehind this decision is the num%er o* who)esa)er and %ig

restaurants wi)) %e )esser in comparison to retai)ers and sma)) restaurants. owe'er the

sa)es re'enue *rom these sections wi)) %e much higher as they wi)) %e purchasing in %u)k

and supp)ying to the retai)ers.

-he other reason is regarding the reach. istri%uting our products to e'ery sma))

restaurants and retai)ers in e'ery nooks and corner wi)) %e a cum%ersome process.

4.. ositioning

ositioning is important *or any %usiness as it is the on)y too) that determines their image

as we)) as perception in the minds o* their customers. S9 9ood)es wants to position

itse)* as a nood)e manu*acturing company that stri'es to de)i'er ?ua)ity product to

e**ecti'e)y meet the re?uirements o* its target customers.

rom the market research conducted the *irms in nood)es industry do not particu)ar)y do

ad'ertisements and promotions. -hey supp)y the products as per the demand.

So S9 9ood)es wi)) %e positioning its product as a ?ua)ity product with the same priceas that o* its competitors.

4.". Competition

Stick nood)es %eing an "C product and )isted on the priority e8port potentia) product

%y 9-IS 9epa) -rade Integration Strategy 'arious cottage industries sma)) and

medium enterprises are attracted towards the nood)es industry. Simi)ar)y in nood)es

industry the pro*it margin seems to %e high. -his has %een another attracti'e *eature. ,ith

the growing interest and inc)ination towards the nood)es industry the num%er o* *irms is

increasing. -his has )ed to high competition.

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Chapter : Competiti(e /na*ysis

.1. orter8s i(e orces #ode*9Competiti(e /na*ysis

we))7used method o* e8terna) ana)ysis is orterFs i'e orces a mode)

de'e)oped %y ro*essor "ichae) orter. orter identi*ied and demonstrated that

the state o* competition *or an organi/ation is a composite o* *i'e competing

*orces. -hese *orces are:

hreat o+ new entrants: 9ew entrants are a)ways a power*u) source o*

competition. -he new capacity and product range %ring in throw up new

competition pressure. In opening up a stick nood)es *actory doesn6t re?uire

huge amount o* capita) hence anyone can enter this market a*ter a thoroughstudy o* market and trained sta**s. Simi)ar)y stick nood)es %eing an "C

product and )isted on the priority e8port potentia) product %y 9-IS 9epa)

-rade Integration Strategy 'arious cottage industries sma)) and medium

enterprises are attracted towards the nood)es industry.

Bargaining power o+ customer: -here are many competitors in market so the

%argaining power o* customers wi)) %e high. -he %argaining power can %e

minimi/ed %y maintain good re)ationship with the who)esa)ers and %ig

restaurants and assuring ?ua)ity products at the same price charged %y the

competitors.

Bargaining power o+ supp*ier: -he raw materia)s re?uired *or the production

o* stick nood)es items are supp)ied %y many num%ers o* supp)iers thus this

makes the supp)iers position weak. ence there is )ow %argaining power o*

supp)iers.

hreat o+ su&stitute products: -here are many su%stitute products *or the

stick nood)es. eop)e can go *or *ast *ood or *or packed and &unk *ood. ence

there is a threat o* su%stitute product *or our %usiness.

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i(a*ry among current p*ayers:-here are many competitors such as -iger

oo&a Attam and many more

Chapter ": #arketing /nd Sa*es *an

".1. #arketing mi;

roduct

-he core product o* S9 9ood)es is stick nood)es. resh nood)es are an e8truded

product made o* maida. -hey are )ong thread7)ike o* 0.22 to 0.4 mm. thickness.

-his is an eata%)e *ood item under instant *ood products and 'ery popu)ar now7a7

days as %reak7*ast *ood )unch and dinner. It is one o* the most con'entiona) *oods

a'ai)a%)e in the market. -he nood)es wi)) %e a'ai)a%)e in 1 kg packet with e8piry

date o* ! months *rom the date o* manu*acturing. rice

-he pricing o* the product wi)) %e done on the %asis o* the cost in'o)'ed in the

manu*acturing process and certain percentage o* margin wi)) %e added to the cost

o* production to deri'e the se))ing price. -he other *actor that wi)) %e considered

in the pricing strategy is on the %asis o* pre'ai)ing market trend. iscount wi)) %e

pro'ided to the who)esa)ers.

-he se))ing price in the *irst year wi)) %e ;s. 55. and wi)) increase %y 5D e'ery

year in order to co'er the in*)ation i.e. increase in price o* raw materia). romotion

In the initia) phase promotion wi)) %e done in order to create awareness regarding

the S9 9ood)es. -he same promotiona) methods are used *or the 5 years

howe'er the purpose wi)) %e to retain the customers. romotiona) techni?ues are:

amph)ets and %roachers wi)) %e distri%uted in 'arious restaurants shopping ma))s

and retai) out)ets as we)) as to the who)esa)ers.

,e wi)) open a sta)) within the premises o* Bhat%hateni. ,e wi)) change our

)ocation e'ery year. In the *irst year we wi)) p)ace our sta)) at Bhat%hateni 9a8a).

ro'iding discount to the customer wi)) %e another promotiona) strategy to

increase the sa)es 'o)ume and maintain good re)ationship with the customer.

d'ertising our product on radio and =CS maga/ine.

24 | a g e


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26/63

-he *actory wi)) %e )ocated at ;amkot Sitapai)a a%out a ki)ometer away *rom ;ingroad.

-he product wi)) %e distri%uted to the who)esa)ers *rom the *actory site itse)* the

who)esa)er wi)) se)) the product to the retai)ers and *rom the retai)ers it wi)) reach to the

u)timate consumers.

-he company wi)) itse)* distri%ute its product to the %ig restaurants.

Chapter $: inancia* *an

$.1. /ssumptions

ssumptions *or the in'entory

1. -he in'entory o* *inished goods *or the *irst year has %een taken as ha)* month o*

the tota) year)y production.

2. -he remaining units o* *inished goods are so)d. $* the tota) sa)es (0D is made on

cash and remaining on credit.

3. -he in'entory o* raw materia) *or the *irst year wi)) %e taken on the %asis on raw

materia) re?uired to maintain the )e'e) o* in'entory o* *inished goods.

ssumptions *or Start Ap =8pensesH

&) Ofce supplies include stationeries2 3ater 4ar2 co5ee making

macine2 utensils2 electric eater2 door mats2 stamp2 etc)%) 6e start7up e!penses 3ill "e 3ritten o5 in & year)

ssumptions *or epreciation Schedu)eH

1. -he wi)) %e no additions in the poo) o* assets *or the *irst 5 years %ecause the

*actory wi)) not operate in *u)) capacity.

2. -he machineries wi)) %e repaired once in 3 years and it wi)) not %e capita)i/ed as

the e8pense incurred wi)) not enhance the capacity o* the machineries.

ssumptions *or Loan morti/ation Schedu)e

1. -he term )oan amount o* ;s. !0#5000 has %een taken *rom ima)ayan %ank at

an annua) rate o* +.#5D.

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28/63

there*ore 3!0kgs o* ;" P 420 kgs o*

1 kg o* P 0.(! kgs o* ;"

50 kgs o* ;"P ;s. 1(50

there*ore 0.(! kgs o* ;"P ;s. 31.(2

1 kg o* ;"P ;s. 3#

-he cost o* ;aw materia) wi)) increase %y 5D e'ery year.

ssumptions or Cash Co))ection rom ; nd Cash ayment -o

1. $* the tota) sa)es (0D is made on cash and the remaining 20D is made on credit.

2. $* the credit sa)es a)) wi)) %e co))ected in the ne8t year.3. $* the tota) purchase (0D is made on cash and remaining 20D is made on credit.

4. $* the credit purchase a)) the payment wi)) %e made in the ne8t year.

9$-=S

1. urniture and *i8tures inc)ude ta%)es chairs hanging sticks paint %rush *or

c)eaning the machine %room and stationeries.

-a%)esP 10 Q 20000P 200000ChairsP 25Q 5000P 125000

aint %rushP 20 Q 200P 4000

Broom P 20 Q 50P 1000StationeriesP 5000

So*a P !5000

-$-L P ;s. 400000

$.2 inancia* detai*s o+ startup e;penses

S9 9ood)es wi)) %e started with an initia) in'estment o* 9;s. !0#5000 out o* which

40D i.e. 9;s.%2#($2$$$ wi)) %e *inanced %y e?uity and the remaining !0D i.e. 9;s.

3!45000 wi)) %e *inanced %y a %anks term )oan. -he )oan wi)) %e taken *rom ima)ayan

Bank Ltd at +.#5D interest rate.

-he initia) working capita) re?uirement *or the %usiness is o* 9;s. 22(!#(2H !0D o*

which wi)) %e *inanced %y working capita) )oan o* 9;s. 13#20!+ *rom ima)ayan Bank

at 10.5D interest rate. -he other start7up cost wi)) amount to 9;s. (5000. It wi)) consists

o* di**erent types o* e8penses )ike purchase o* *urniture registration *ees pre operating

sa)aries o**ice supp)ies and others. -he detai) o* the start7up e8penses is shown in nne8

1.

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$.3 ro'ected Income Statement:

ro&ected income statements is a summary o* the operating acti'ities o* the %usiness. It is

an important too) *or p)anning *uture %usiness operations. -he pro&ected income

statement o* S9 9ood)es shows appropriate pro*it *or the periods o* pro&ection and the

trend o* pro*it is increasing continuous)y throughout the pro&ected period. -he detai) o*

pro&ected income statement o* this institution is shown in nne8 2.

$.4 ro'ected Ba*ance Sheet:

ro&ected %a)ance sheet disc)oses a %usiness6s assets )ia%i)ities and e?uity at a speci*ic

point in time. -he opening %a)ance sheet o* S9 9ood)es shows 9;s. !0#5000.00 o*

tota) assets with same )e'e) o* )ia%i)ities and e?uity and the tota) %a)ance at the end o*

*i*th year is 9;s. 3+#4!524.2!. -he o'era)) pro *orma %a)ance sheet o* S9 9ood)es

*or *i'e years is disc)osed in nne8 3.

$. ro'ected Cash +*ow Statement

ro&ected cash *)ow statement shows the tota) net cash in*)ow or out*)ow at a speci*ic

point o* time *rom operating in'esting and *inancing acti'ities. -he pro&ected cash *)ow

shows a %a)ance o* 9;s. 453#521 at the *irst year and at the end o* *i*th year it is 9;s.

2#3#2(4!. -he pro&ected cash *)ow statement o* S9 9ood)es is disc)osed in nne8 4.

$." Business inancia* atios:

-he *inancia) ratios o* the %usiness indicate its )i?uidity so)'ency and pro*ita%i)ity o* the

*irm. ,hich is e8p)ained %e)ow and the detai) is shown in the nne8 !

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Li


31/63

It is ca)cu)ated %y di'iding the cash *)ow *rom operation %e*ore interest and ta8 with

interest and principa) payments Cash *)ow *rom $perations %e*ore interest and ta8R

Interest and rincipa) ayment which determines the a%i)ity o* the company to pay its

interest and principa) on )oan. -his ratio has a)so %een increasing *rom 1.!1 to 12.((

indicating high a%i)ity o* the *irms to pay the interest and principa).

ro+ita&i*ity atio

ro*ita%i)ity ratiosmeasure a company6s a%i)ity to generate earnings re)ati'e to sa)es

assets and e?uity. -hese ratios assess the a%i)ity o* a company to generate earnings

pro*its and cash *)ows re)ati'e to re)ati'e to some metric o*ten the amount o* money

in'ested. -hey high)ight how e**ecti'e)y the pro*ita%i)ity o* a company is %eing managed.

7ross ro+it #argin:

S9 9ood)es has maintained its constant gross pro*it ratio throughout the period.

et ro+it #argin atio:

Initia))y the pro*it margin is 21D which wi)) increase to 2#D in the *ina) year o*

prediction.

eturn on asset ratio

Initia))y the return on asset ratio was 2! D which decreased to 23D in year three and then

it went up to 25D indicating a high return on assets.

eturn on sa*es ratio

Same as the return on assets and net pro*it margin the in the initia) year the return on

sa)es was 21D which increased to 2#D in *ina) year o* pro&ection.

/sset turno(er ratio

It is an e**iciency ratio which te))s how success*u))y the company is using its assets to

generate re'enue. uring the *irst three years the asset turno'er ratio has %een

31 | a g e


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-rade Integration Strategy we p)an to e8pand our market %eyond the nationa) %oundaries

%y e8porting the product.

=8pansion o* product )ine is another goa). ,e p)an to enhance our product port*o)io %y

manu*acturing tomato ketchup soya sauce mayonnaise and *)a'ored nood)es.

,.2. ?;it Strategy

-he degree o* competition is high in 9epa)ese 9ood)es industry as there is si/ea%)e

num%er o* competing enterprises e8isting in the market. In this conte8t it wou)d %e wise

i* S9 9ood)es prepares itse)* i* it is una%)e to sur'i'e success*u))y in the market %y

p)anning an e8it strategy %e*orehand.

-he nood)es *actory wi)) enter into di**erent )i*e cyc)e. In the )ong run we may not

continue in the same %usiness. -he *our stages o* )i*e cyc)e indicate to adopt a di**erent

and appropriate %usiness strategy. -hus a*ter the maturity stage the stage o* dec)ine

comes. Be*ore making the %usiness *ai)ure we shou)d adopt another suita%)e strategy.

-here are %asica))y *our e8it strategiesH

"erger and ac?uisition

Se)) it to a *riend)y indi'idua)

"ake it a cash cow

Li?uidation and c)ose

-he strategies that S9 9ood)es wi)) adopt to e8it the market wi)) %e to se)) its entire

%usiness to the interested party and use the sa)es proceeds to co'er the )oss *aced %y it.

part *rom this it can a)so merge with other growing and success*u) ad'ertising *irm so

as to ser'e the market with a renewed %rand name and goodwi)).

/?@

1. Capita* e


36/63

Land on )ease 1200000

Bui)ding 1 2000000

"i8ing machine 1 50000 50000

ough making machine 3 (0000 240000

Cutting machine 2 50000 100000

"otors 4 !0000 240000

Iron pipes 2#5 1000 2#5000

acking machine 2 20000 40000

enerator 1 500000 500000

ehic)e 1 +00000 +00000

Computer 2 !5000 130000

urniture < *i8ture 400000

ota* +i;ed assets "=$=

-orking capita* 2=2)"=$)2

ota* )=3"1=$)2

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Capita* Structure

-orking Capita* Structure

articu*ars Anit ate s. /mount s.

In'entory o* *inished goods 13!50 35 4#!5+3

ccount recie'a%)es !2#+0 55 3453450

In'entory o* raw materia)s 2!4 3# +#!(

)ess : ccount aya%)es 20(!(00

$perating e8penses *or a mth 433##1

ota* 2=2)"=$)2

;s 13#20!+ i.e. !0D o* the working capita) wi)) %e taken as working capita) )oan *rom

ima)ayan Bank Ltd.

3$ | a g e

Capita* Structure /mount s.

=?uity 40D 2430000

Loan !0D 3!45000

ota* "=$=


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39/63

ue) e8penses

21!0

00

22!(0

0

23(1

40

2500

4#

2!254

+

"iscce))aneous

!00

00

!300

0

!!1

50

!+4

5(

#2+3

0

morti/ation o* start up

e8penses

(50

00 7 7 7 7

;egisteration renewa) *ee

30

00

300

0

30

00

30

00

300

0

,astages

22(#

!5

23+1(

+

334(

!4

3501

((

45+!2

2

ackaging cost

!552

00

!!(30

4

+0((

+3

+2#0

#1

11(201

!

epreciation on i8ed

assets !

!2+2

50

522!1

3

43!5

(3

3!!+

0(

31024

#

Insurance

1215

00

12150

0

1215

00

1215

00

12150

0

Interest on ,C )oan #

+12

0(

Interest on term )oan (

3340

44

2#3(0

4

20#4

#3

1344

33

5400

(

Sa)aries and re)ated

e8penses +

14#2+

00

14#2+0

0

154!5

45

154!5

45

1!23(#

2

;oad ta8 *or 'ehic)e

200

00

2000

0

200

00

200

00

2000

0

%/L

4=3"=)

"$

3=$3$=1

,

4=4=4

4)

3=,2)=

"

4=2="

"

Sa*es and promotiona*

e;penses

d'ertiment and

promotiona) e8penses 10

133#3

!3

144+55

#

1#01+

3!

200++

30

!0##

5

Sa)ary to Sa)es personne)

15!0

00

1!3(0

0

1#1+

+0

1(05

+0

1(+!1

+

3, | a g e


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ccount paya%)e

13.

00

20(!(0

0.00

21+1

140.0

3220+#

5.(0

33(202

4.5+

4+#15#

!.15

Income ta8

paya%)e

12030!

2.13

1352

(2(.2

1!2(+#

+.20

21(4!!

(.20

330+0(

3.#1

,C Loan

13#20!

+.42

ota* Current

*ia&i*ities

4=""1=,31

.

3=43=,

").2

4=)4,=,.

=""=",2

.$,

)=2)=",.

)"

Long term

*ia&i*ities

-erm )oan (.0

3!450

00

304+2+

1.55

23+3

343.2

1!#10!

3.30

(#5#4

4.21

0

.05

Shareho*derFs

euity

=?uity

24300

00

243000

0.00

2430

000.0

243000

0.00

243000

0.00

243000

0.00

;etained earning

14

3!0+1(

!.3(

#!!#

!#1.1

12554!0

(.#2

1+10(!

13.33

2+035(!

4.45

ota*

shareho*derFs

e


43/63

dd: depreciation !

!2+25

0

522!

13

43!5

(3

3!!+

0(

3102

4#

dd: pre)iminary e8penses written o**

(500

0

dd: pro'ision *or income ta8

12030

!2

1352

(2(

1!2(

+#+

21(4

!!(

330+

0(4

Increase decrease in ccount

recei'a%)e 11

32(0##

(

2+44

4+(

52(1

+#

20!!

10

255+

+0

Increase decrease in in'entory ;" 5

+#!

(

10#

45

#(22

(4

(!04

!1

3(231

#(

Increase decrease in In'entory o* 4

4#!5+

3

530

2+

1(540

3(

#(5#

24

25((

(+

Increase decrease in ccounts

paya%)e 13

20(!(

00

1043

40

102+

(3!

1!10

4+

15(+

552

ayment o* -a8 7

12030

!2

1352(

2(

1!2(+

#+

21(4!

!(

Cash +*ow +rom operating acti(ities

/

3=)4"=1"

$=)21=,

)"

3=4"4=,

),

$=3"=3

3

)="13=4

)

B. In(esting /cti(ities

Sa)e o* e?uipment

urchase o* *i8ed assets

!0#50

00

urchase o* Bui)ding =?uipment

re)iminary e8penses

(500

0

Cash +*ow +rom In(esting /cti(ities

B

"=$=

)=

9 9 9 9

C. inancing /cti(ities

Capita) 243

-erm )oan 3"4

;epayment o* term )oan (

5+5#0

(

!55+

4(

#222

(0

#+53

1+

(#5#

44

,orking capita) )oan 13#20

43 | a g e


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ime interest earned ratio

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1. Schedu*e or Sa*es orecast

articu*ars Dear 1 Dear 2 Dear 3 Dear 4 Dear

ercent change G 1)G 1)G 1)G

Sa)es unit

313+5

0.00

32+!4

#.50

3((+(

4.05

45+00

1.1(

541!2

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ercent change in

SA 5D 5D 5D 5D

SA s.

.

$.

$

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)

ota* sa*es 1$=2"$=2. 1,=3$=143. 23=)$=2. 2,=224=31). 3"=2)=,3.

4 | a g e


46/63


47/63


48/63

. Schedu*e +or in(entory o+ raw materia*

In(entory o+ aw #ateria* in Anit


$pening in'entory o* ;" 7

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ercent change 5D 5D 5D 5D

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49/63

$. 6epreciation schedu*e

Dear 1

articu*ars

ate o+

6ep. %pening Ba*ance 6epreciation

C*osing

Ba*ance

B*ock9/

Bui)ding 5D 2000000 100000 1+00000

B*ock9B

Computer 25D 130000 32500 +#500

urniture < *i8ture 25D 400000 100000 300000

ota* 530000

B*ock9C

ehic)e 20D +00000 1(0000 #20000

B*ock96

"i8ing machine 15D 50000 #500 42500

ough making machine 15D 240000 3!000 204000

Cutting machine 15D 100000 15000 (5000

"otors 15D 240000 3!000 204000

Iron pipes 15D 2#5000 41250 233#50

acking machine 15D 40000 !000 34000

enerator 15D 500000 #5000 425000

4, | a g e


50/63


51/63


52/63

Dear 4

articu)ars

;ate o*

ep. $pening Ba)ance epreciation

C)osing

Ba)ance

B*ock9/

Bui)ding 5D 1#14#50 (5#3( 1!2+013

B*ock9B

Computer 25D 54(44 13#11 41133

urniture < *i8ture 25D 1!(#50 421(( 12!5!3

ota* 2235+4 55(+( 1!#!+5

B*ock9C

ehic)e 20D 4!0(00 +21!0 3!(!40

B*ock96

"i8ing machine 15D 30#0! 4!0! 2!100

ough making machine 15D 14#3+0 2210+ 1252(2

Cutting machine 15D !1413 +212 52201

"otors 15D 14#3+0 2210+ 1252(2

Iron pipes 15D 1!(((4 25333 143552

acking machine 15D 245!5 3!(5 20((0

enerator 15D 30#0!3 4!05+ 2!1003

ota* ((#411 133112 #542++

ota* deprecation 3""=,)

Dear

articu)ars

;ate o*

ep. $pening Ba)ance epreciation

C)osing

Ba)ance

B*ock9/

Bui)ding 5D 1!2+013 (1451 154#5!2

2 | a g e


53/63


54/63

) ,

4 | a g e


55/63

,. erm Loan /morti0ation Schedu*e

S.

.

aymen

t date

Beginning

&a*ance # Interest

rincipa

*

?nding

&a*ance

Cumu*ati(e

interest

1

4

20+5

3

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23243

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56/63

ota* 2$=4$3

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1

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10. Sa)aries and $ther ;e)ated =8penses Schedu)e

Sa*aries and re*ated

e;penses

o

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#onth*

y Dear 1 Dear 2 Dear 3 Dear 4 Dear

ercentage increment G G

$wnerFs compensation 1

300

00

300

00

3+0

000

3+00

00

40+

500

40+

500

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+#5

Sa)ary to super'isor 200 200 2!0 2!00 2#3 2#3 2(!

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57/63


58/63

d'ertisement 'ia radio 50000 52500 55125 5#((1 !0##5

ota* 1=33$=3"3 1=44,=$ 1=$1=,3" 2=,=,3 2=3)"=,"

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59/63


60/63


61/63

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%/L

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62/63

14. Schedu*e +or /ccount aya&*e


-ota) purchase

1043400

0

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+

1!+1012

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ayment to credit purchase

same year 0D 7 7 7 7 7

ne8t year 100D 7

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3220+#

!

33(202

5

-ota) payment to credit

purchase 7

20(!(0

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ota* cash payment to /

)=34$=2

1=)1=3"

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"2 | a g e


63/63

1. etained ?arnings Schedu*e

articu*ar Dear 1 Dear 2 Dear 3 Dear 4 Dear

Beginning ;etained =arning 7 3!0+1(! #!!#!#1 12554!0+ 1+10(!13

dd: 9et income 3!0+1(! 405(4(5 4((!+3( !554005 ++2#251

C*osing retained earning 3=",=1)" $=""$="$1 12=4=", 1,=1)="13 2,=3=)"4

1". Ca*cu*ation o+ != I > #I

@ear Cash *)owI 10D resent 'a)ue

1

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2 103314((.+5

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3 130#41+(.2+

0.#513 +(22(3(.!(

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0.!20+ 1!++!3(3.(+

-ota) resent a)ue-

52(+3#55.(#

Less 9et Cash $ut*)ow

(44!#(2.3#

9et resent a)ue

4444!+#3.50

1$. Ca*cu*ation o+ ay Back eriod

iscounted pay%ack period P minimum *u)) year Mremaining amt to %e

reco'erediscounted C- o* reco'ery year

iscounted pay%ack 1.50! years

bdp report on san noodles, apex college

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