5. MATERIALES Y MÉTODOS
5.2 Elementos físico-naturales:
Less Accumulated Depreciation 9,000 81,000
Fax and printer 30,000
Less Accumulated Depreciation 3,000 27,000
Furniture 100,000
Less Accumulated Depreciation 10,000 90,000
Total fixed Assets 2,11,500
Total Liabilities and Partners’ Equity 32,02,411
3. Cash flow statement
Particular Pre-operating First year Second year Third year
Cash inflow
Equity 29,67,411
Sales 1,26,48,768 1,51,54,656 1,81,38,856
Total cash inflows 29,67,411 1,26,48,768 1,51,54,656 1,81,38,856
Cash outflow
Pre-operating expenses
(Purchase of fixed assets) 2,35,000
Cost of materials 93,28,000 1,11,76,000 1,33,76,000
Operative Expenses 6,86,000 13,67,800 13,66,800
Inventory 5,28,000 5,28,000 7,04,000
Advertisement cost 10,40,000 7,40,000 7,40,000
Tax 1,35,625 1,51,671 2,51,292
Total cash outflows 2,35,000 1,17,17,625 1,39,63,471 1,64,38,092
Net cash flows 27,32,411 9,31,143 11,91,185 17,00,764
Cash balance in the beginning 27,32,411 36,63,554 48,54,739
Borrowing/Repayment – – –
Cash balance at the end 27,32,411 36,63,554 48,54,739 65,55,503
B. Breakeven analysis
First year
Fixed cost 25,8000
Selling price per unit 1,19,328
Variable cost per unit 91,000
Breakeven point in units 89 units
breakeven point=fixed costselling price per unit-variable cost per unit The fixed cost includes:
Advertisement cost (Rs.10,40,000), Initial start up cost (Rs.2,85,000), Running cost for one year (Rs.6,55,000) And the inventory cost(Rs.5,28,000)
Hence after sales of 89 units, we will go into profit.
C. Ratio Analysis:
1. Net profit on Sales ratio:
Net profit on Sales ratio = Net profit ÷ net sales
First year Second year Third year
Net profit 9,07,643 10,15,035 16,81,729
Net sales 1,26,48,768 1,51,54,656 1,81,38,856
Net profit on Sales ratio 7.175 % 6.69% 9.27%
Conclusion :
After deducting all the expenses, 7.175 paisa of each sales rupees remains as a profit for us in the first year. Then in second year due increase in expenses in addition of rooms and human resources, it is decrease to 6.69 paisa of each sales rupees. After third year, it will increase to 9.27 paisa of each sales rupess as no more additional expenses will be added. In other hand advertisement expenses will be deducted after second fiscal year.
2. Net profit to equity (Return on Investment Ratio)
Net profit to equity Ratio= net profits before tax / shareholders equity First Year
Net Profit 10,43,268
Owner’s Equity 32,02,411
Net profit to equity ratio 32.5%
Conclusion:
The earning of ESS is 32.5 percent on the money the partners have invested in ESS for first year.
3. Times interest earned ratio:
Times interest earned ratio= (earnings before interest and taxes)/ (total interest expense)
First Year
Earnings before interest and taxes 10,43,268
Total interest expense 1,35,625
Time interest earned ratio 7.69
Conclusion:
ESS earned 7.69 times more than its tax expenses.
References
1. www.solarpanels.com 2. www.scribd.com 3. www.nea.com .np 4. www.lotusenergy.com 5. www.solarbuzz.com
Appendices
Appendix no. 1
A. Location: Kamal Pokhari
Layout of the Office:
Plan of working area
Area of the office: 40*60 ft2
Room Size(ft*ft)
Account & sales section 5*5
Store room 20*30
Reception 5*5
O&M 5*5
R&D 5*5
Appendix no. 2
Business plan survey
We have done a survey on the students of Kathmandu University coming from Kathmandu altogether about 20 Students by distributing a questionnaire and make them free to express anything on the topic.
Here is the result and model of questions
QN1. How often load shedding is becoming an obstacles in your routine life?
a. Not so often b. Is curse c. Loving it
QN2. What may the best alternatives to solve present load shedding?
a. Inverters b. Diesel generator c. Solar plant
d. Anything you suggest
Among the participants two of them suggested that bio fuel can be used to stop loadshedding.
QN3. Do you know about green energy?
a. Yes b. No
QN4. What you use to read during night for study?
a. Solar lamps b. Emergency lights c. Candles
d. Don’t read when loadshedding
QN5. Do you think solar plant is costly?
a. Yes b. No
c. Do not know
QN6. What is the main reason behind present energy crisis?
a. Political instability
b. Not enough hydropower plant c. Leakage and theft of electricity
QN7. What you suggest about to reduce present load shedding and promoting use of solar energy?
Participant expressed their views on the use of solar plants some expressed about high cost of it, So we need to search other alternatives but many of them wrote that sun is this is nature’s gift for us so we must make benefits from it by using solarplants and promoting green energy.
Appendix no. 3
Result of survey conducted among 20 persons
S.N Payment types No of person
1 Full payment 13
2 Installment 7
Appendix no. 4
Glossary
Competitive advantage
The aggregation of factors that sets a small business apart from its competitors and gives it a unique position in the market.
Equity: In property, the difference between the property’s current market value and the claims against the property. In a firm the shareholder’s equity is the ownership interest in the firm.
Depreciation
Decrease in the value of equipment from wear and tear and the passage of time.
Partnership
An association of two or more people who co-own a business for the purpose of making a profit.
Guerrilla Marketing Strategy
Unconventional, low cost, creative marketing strategies designed to give small companies an edge over their large, richer more powerful rivals.
Innovation
The ability to apply creative solutions to problems and opportunities to enhance.
Revenue
The entire amounts of income before any deductions are made.
Assets: Accounting term for everything a company owns and which has a monetary value listed in the balance sheet.
Budget: A plan of future income and expenses during a specified period, such as one year. In an operating budget the planned costs and revenues, expenditures and incomes are compared.
Variable Cost
Any costs that change significantly with the level of output.
Fixed Cost
Any cost of production that does not vary significantly with the volume of output.
Income Statement
A financial statement that represents a moving picture of a business, comparing its expenses against its revenue over a period of time to show its net profit.
Balance Sheet
A financial statement, that provides a snapshot of a business’s financial position.
Current Assets
Assets such as cash and other items to be converted into cash within one year.
Fixed Assets
Assets acquired for long-term use in a business.
Liabilities
Creditors’ claims against a company’s assets.
Current Liabilities
Those debts that must be paid within one year.
Cash Inflow
Cash flowing into the business from all sources over a period of time.
Cash Outflow
Cash flowing out of the business from all sources over a period of time.
Expense
Amounts paid for goods and services that may be currently tax deductible.
Return on Investment
The amount of profit (return) based on the amount of resources (funds) used to produce it.
Profit
Profit is the excess of income over expenses.
Differentiation Strategy
A strategy in which a company seeks to build customer loyalty by positioning its goods or services in a unique or different fashion.
Appendix no. 5
Resume of Key Managers Name: Ashish Manandhar Age: 27
Address: Chetrapati, kathmandu Residence Ph: 01-4460365 Mobile: 9846060720
E-mail: [email protected]
Present status:
Manager at CDC Advertising Pvt. Ltd.
Interest: Sports, Reading, Music, Chess
Academic Achievements
Serial No.
Degree Achieved Awarding Institute Grades Obtained Remarks
1. MBA KU 3.5 CGPA Distinction
2. B.E KU 3.03 CGPA First division
3. I.SC S. Xaviers 73% First Division
4. SLC Gandaki H.S.S 80.00% Distinction
Awards Achieved:
• Best cricketer of Kathmandu, 2008
• Face of Thamel, 2007 Presentation and Seminars:
Marketing seminar organized by KUSOM, 2007
Name: Damodar Paudel Age: 27
Address: Khurkot-5, Parbat Residence Ph: 067-420341 Mobile: 9841419586
E-mail: [email protected] Present Status:
Account Manager in Himstar Electronics PVT LTD.
Interest: Reading, sports, travelling
Academic Achievements
Serial No
Degree Achieved Awarding Institute Grades Obtained Remarks
1. MBA KU 3.85 CGPA Distinction
2. BE KU 3.5 CGPA Distinction
3. I S C. NIST 77% First Division
4. SLC Kalika Ma.Vi, parbat 75% First Division
Other Degrees Obtained:
1. “Complete Windows Package” course from Brilliant Computers, 2006.
Awards Achieved:
• Gold Medal for highest CGPA, 2007
Presentation and Seminars:
• Seminar on Microeconomics organized By Nepal chamber of Commerce, 2006
• Presented paper on Microeconomics, 2007
Name: Rubbendra Maharjan Age: 28
Address: Jorpati-5, Kathmandu Residence Ph: 01 – 4486163 Mobile: 9841291928
E-mail: gnr_Rubbendra @hotmail.com Present Status:
Customer Service Officer at Prisma Electronics Pvt. Ltd.
Interest: Reading, Sports, Music
Academic Achievements
Serial
No Degree Achieved Awarding Institute Grades Obtained Remarks
1. ME KU 3.75 CGPA Distinction
2. B.E KU 3.65 CGPA Distinction
3. ISC KU 70% First Division
4. SLC Gyanodaya 80.2% Distinction
Other Degrees Obtained:
1. Microsoft Office Package Course from New Tech Institute,2007
1. 6 months training in Organizational Development and Leadership , Malthus Institute, Putalisadak, 2006
Awards Achieved:
• Winner of Music Competition at Gyanodaya, 2002
Presentation and Seminars:
• Attended one day seminar on “Renewable Energy” ,2007
Table of Contents
I Executive Summary...1
A. company name, address and phone number...1
B. contacts of key people...1
C. Our Business, Services and solutions...2
D. Our Market...2
E. Competition and marketing Strategy...2
F. Management team...3
G. Financial forecast...3
II. VISION AND MISSION STATEMENTS...4
A. vision statement...4
B. Mission statement...4
Ç. Values and Principles on which business stands...4
D. Competitive Advantage...4
III. BUSINESS AND INDUSTRY PROFILE...5
A. stage of growth...5
B. Company Goals and Objectives...5
C. Industry analysis...6
1) Industry background and overview...6
2) Significant trends...6
3) Growth rate...6
4) Key success factors In the industry...6
5) Outlook for the future...7
IV. BUSINESS STRATEGY...8
A. Desired Image and Position in the Market...8
B. SWOT Analysis...8
C. Competitive Strategy...8
V Company product and services...9
A. Description...9
1. Product or Service features...9
2. Customer benefits...9
3. Warranties and Guarantees...9
4. Uniqueness...10
B. Patent or trademark protection...10
C. Description of Service process...10
D. Future Service offerings:...11
C. Market Size and Trends...13
1) How large is the market?...13
2) Is it growing or shrinking?...13
D. Advertising and Promotion...13
1. Media to be used...14
2. Frequency of usage...15
E. Pricing...16
VII: Location and Layout...18
A. Location and demographic analysis...18
B. Layout and ergonomics issue...18
VIII COMPETITORS ANALYSIS...19
A. Existing Competitors...19
1. Competitive Profile Matrix...19
2. Strengths and Weakness of competitors...20
B. Potential competitors...20
Kinetic Energy Pvt. Ltd...20
Nepal Energy Development Company (Pvt.) Ltd. (NEDCO)...21
Lotus Energy Pvt. Ltd...21
IX DESCRIPTION OF MANAGEMENT TEAM...22
A. Key managers and employees...22
1. Designation of Key managers...22
2. Key Employees: ...22
3. Salary Structure of staffs:...23
B. Qualification of Management Team...23
X PLAN OF OPERATION...24
A. Form of ownership...24
B. Structure of the Company...24
C. Decision Making Authority...24
D. Compensation and Benefits Packages...25
XI FINANCIAL FORCASTS...26
A. Financial statement...26
1. Pro forma Income Statement...26
B. Annual Expenses ...27
C. Pro forma Balance Sheet ...28
D. Cash flow statement...29
E. Breakeven analysis...30
References...33
Appendices...34 Appendices