Paliwala's Bakers Sweet Mart

Name:
Roll #:
Course:
Instructor:

Ali Asghar Paliwala
2002-1-13-2810
Financial Management
Sajjad Siraj

Project Name: Paliwala's Bakers & Sweet Mart
Introduction:
Paliwala's Bakers and Sweet Mart will be started with the idea to introduce bakery products
that has never been introduced before in the Pakistani market e.g. flavoured breads and
biscuits and to introduce famous and unique sweets from different cultures and around the
world.
This bakery will be opened on a plot size of around 25 x 35 square foot. This plot is at the
back side of Tauheed Commercial Area, Phase 5, Defence. The price of the plot was
consulted with a local estate agent (Al - Ameen estate Agency).
For the analysis of this project I had visited the Anjarwala's Bakers and Confectioners in
Clifton opposite to B.B.Q Tonight.

Paliwala's Bakers Sweet Mart

Income Statement Assumptions
No. of Days in a Year

360

Assumption for Sales
Selling Price (Rs)
12
120
110
110
100
120
40

Cost (% of Selling Price)
90%
70%
70%
80%
70%
50%
90%

Cost Price (Rs)
10.8
84
77
88
70
60
36

Sales Growth Rate (%)
Bread
Cake
Mithai
Mithai (Khoay wali)
Biscuit
Chips/Nimco
Branded Products

Year1

Year2
25%
25%
20%
20%
20%
20%
10%

Year3
10%
5%
10%
10%
2%
2%
0%

Year4
0%
0%
0%
0%
0%
0%
0%

Year5
0%
0%
0%
0%
0%
0%
0%

Sales Unit (Per Day)
Bread
Cake
Mithai
Mithai (Kkoay wali)
Biscuit
Chips/Nimco
Branded Products

Year1
40
20
25
25
25
10
70

Year2
50
25
30
30
30
12
77

Year3
55
26.25
33
33
30.6
12.24
77

Year4
55
26.25
33
33
30.6
12.24
77

Year5
55
26.25
33
33
30.6
12.24
77

Sales Amount (Rs. Per Year)
Bread
Cake
Mithai
Mithai (Khoya)
Biscuit
Chips/Nimco
Branded Products

Year1
172800
864000
990000
990000
900000
432000
1008000

Year2
216000
1080000
1188000
1188000
1080000
518400
1108800

Year3
237600
1134000
1306800
1306800
1101600
528768
1108800

Year4
237600
1134000
1306800
1306800
1101600
528768
1108800

Year5
237600
1134000
1306800
1306800
1101600
528768
1108800

Cost Amount (Rs. Per Year)
Bread
Cake
Mithai
Mithai (Khoya wali)
Biscuit
Chips/Nimco
Branded Products

Year1
155520
604800
693000
792000
630000
216000
907200

Year2
194400
756000
831600
950400
756000
259200
997920

Year3
213840
793800
914760
1045440
771120
264384
997920

Year4
213840
793800
914760
1045440
771120
264384
997920

Year5
213840
793800
914760
1045440
771120
264384
997920

Per Month
3500
3000
2000

Per Year
42000
36000
24000
25000
6000
10000
15000

No.
1
1
4
1
3

Avg Salary per Month
8000
6000
2500
7000
2000

Bread (Per Unit)
Cakes (Per lb)
Mithai (per Kg)
Mithai (Khoay wali) (per Kg)
Biscuit (Per Kg)
Chips/Nimco (Per Kg)
Branded Products (Per Unit)

Operating Expense
Electricity
Gas
Telephone
Advertising
Stationary
Entertainment
Miscellaneous
Salary Expense
Employee
Manager
Cashier
Salesman
Chief Baker
Assistant to Baker
Total Salary Expense

Salary per year
96000
72000
120000
84000
72000
444000

Paliwala's Bakers Sweet Mart

Balance Sheet Assumption
Fixed Assets

Land
Building
Plant & Machinery
Furniture & Fixture
Office Equipment

Rs.

2000000
200000
400000
200000
25000

Current Assets

Credit Sales (% of Total Sales)

Accounts Receiveable
Inventory (Estimated in Rs.)
Long Term Liability
Loan (5 Years)
Current Liability
Accounts Payable (50% of Inventory)
Owner's Equity

10%
Year1
434880
Estimated
180000

Year2
527040
20% plus of Year1
216000

Year3
561556.8
10% plus of Year2
237600

Year4
561556.8

Year5
561556.8

237600

237600

108000

118800

118800

118800

700,000

90000
2560000

Page 3 of 10

Paliwala's Bakers Sweet Mart

Income Statement
Year1 (Rs.)

Year2 (Rs.)

Year3 (Rs.)

Year4 (Rs.)

Year5 (Rs.)

Sales
Bread
Cakes
Mithai
Mithai (Khoaywali)
Biscuit
Chips/Nimco
Branded Products
Total Sales
Total Revenue

172800
864000
990000
990000
900000
432000
1008000
5356800
5356800

216000
1080000
1188000
1188000
1080000
518400
1108800
6379200
6379200

237600
1134000
1306800
1306800
1101600
528768
1108800
6724368
6724368

237600
1134000
1306800
1306800
1101600
528768
1108800
6724368
6724368

237600
1134000
1306800
1306800
1101600
528768
1108800
6724368
6724368

Cost of Goods Sold
Bread
Cakes
Mithai
Mithai (Khoaywali)
Biscuit
Chips/Nimco
Branded Products
Total COGS

155520
604800
693000
792000
630000
216000
907200
3998520

194400
756000
831600
950400
756000
259200
997920
4745520

213840
793800
914760
1045440
771120
264384
997920
5001264

213840
793800
914760
1045440
771120
264384
997920
5001264

213840
793800
914760
1045440
771120
264384
997920
5001264

Gross Profit

1358280

1633680

1723104

1723104

1723104

Operating Expense
Electricity
Sui Gas
Telephone
Advertising Expense
Stationary
Entertainment
Miscellaneous
Salary Expense
Depriciation Expense - Building
Depriciation Expense - Plant & Machinery
Depriciation Expense - Furniture & Fixture
Depriciation Expense - Office Equipment
Total operating Expense

42000
36000
24000
25000
6000
10000
15000
444000
10000
40000
20000
5000
677000

42000
36000
24000
25000
6000
10000
15000
444000
10000
40000
20000
5000
677000

42000
36000
24000
25000
6000
10000
15000
444000
10000
40000
20000
5000
677000

42000
36000
24000
25000
6000
10000
15000
444000
10000
40000
20000
5000
677000

42000
36000
24000
25000
6000
10000
15000
444000
10000
40000
20000
5000
677000

Operating Profit

681280

956680

1046104

1046104

1046104

78500

66500

54500

42500

30500

Net Profit Before Tax

602780

890180

991604

1003604

1015604

Income Tax

120556

178036

198320.8

200720.8

203120.8

Net Profit After Tax

482224

712144

793283.2

802883.2

812483.2

Interest Payment for Loan

20%

Paliwala's Bakers Sweet Mart

Balance Sheet
Year0

Year1

Year2

Year3

Year4

Year5

2000000
200000

2000000

2000000

2000000

2000000

2000000

Fixed Assets

Land
Building
Acc Depreciation: Building
Plant & Machinery
Acc Depreciation: P & M
Furniture & Fixture
Acc Depreciation: F & F
Office Equipment
Acc Depreciation: Off Equipt

400000
200000
25000

200000
10000
400000
40000
200000
20000
25000
5000

200000
20000
400000
80000
200000
40000
25000
10000

190000
360000
180000
20000

320000
160000
15000

2750000
Current Assets
Cash & Bank Balance
Accounts Receiveables
Inventory

Total Assets
Current Liabilities
Accounts Payable
Long Term Liabilities
Long Term Loan
Owner's Equity
Capital
Retained Earnings

435000
0
0

3260000

280000
140000
10000

2675000
52,184
527040
216000

200000
40000
400000
160000
200000
80000
25000
20000

170000

240000
120000
5000

2600000
574,011
561556.8
237600

200000
50000
400000
200000
200000
100000
25000
25000

160000

150000
200000
100000
0

2525000
1,342,294
561556.8
237600

2450000
2,070,178
561556.8
237600

802224

795224

1373168

2141451.2

2869334.4

3552224

3470224

3973168

4666451.2

5319334.4

0

90000

108000

118800

118800

118800

700,000

600,000

500,000

400,000

300,000

200,000

2560000

2560000
482224

3042224
712144

3754368
793283.2

4547651.2
802883.2

5350534.4
812483.2

Drawings
Total Equity + Liabilities

187,344
434880
180000

200000
30000
400000
120000
200000
60000
25000
15000

180000

3,260,000

180000

180000

300000

300000

350000

3,552,224

3,470,224

3,973,168

4,666,451

5,319,334

Paliwala's Bakers Sweet Mart

Cash Flow Statement (Indirect Method)
Net Income
Add: Depreciation Expense
Add: Increase in Accounts Payable
Less: Increase in Accounts Receiveables
Less: Increase in Inventory
Net Cash Flow from Operating activities

Year 1
482224
75000
90000
434880
180000
32344

Year 2
712144
75000
18000
92160
36000
676984

Year3
793283.2
75000
10800
34516.8
21600
822966.4

Year 4
802883.2
75000
0
0
0
877883.2

Year 5
812483.2
75000
0
0
0
887483.2

100000
180000
280000

100000
180000
280000

100000
300000
400000

100000
300000
400000

100000
350000
450000

-247656

396984

422966.4

477883.2

437483.2

Net Cash Flow from Investing Activities
Long Term Loan payments principal
Drawings from capital
Net Cash Flow from Financing Activities

Net Cash Flow

Paliwala's Bakers Sweet Mart

Long Term Loan Payment Schedule - 7 years
Loan Amount (Rs.)
Interest Rate (Yearly)
Interest Rate (Montly)
Period

700,000
12%
1%
84

Installment No.
1
2
3
4
5
6
7
8
9
10
11
12
Total (Year1)

Interest Amount
7000
6916.67
6833.33
6750
6666.67
6583.33
6500
6416.67
6333.33
6250
6166.67
6083.33

13
14
15
16
17
18
19
20
21
22
23
24

6000
5916.67
5833.33
5750
5666.67
5583.33
5500
5416.67
5333.33
5250
5166.67
5083.33

Principal Payment
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33

8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33

Total Amount Paid
15333.33
15250
15166.67
15083.33
15000
14916.67
14833.33
14750
14666.67
14583.33
14500
14416.67

14333.33
14250
14166.67
14083.33
14000
13916.67
13833.33
13750
13666.67
13583.33
13500
13416.67

Balance
691,667
683,333
675,000
666,667
658,333
650,000
641,667
633,333
625,000
616,667
608,333
600,000

5000
4916.67
4833.33
4750
4666.67
4583.33
4500
4416.67
4333.33
4250
4166.67
4083.33

8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33

13333.33
13250
13166.67
13083.33
13000
12916.67
12833.33
12750
12666.67
12583.33
12500
12416.67

4000
3916.67
3833.33
3750
3666.67
3583.33
3500
3416.67
3333.33
3250
3166.67
3083.33

8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33

12333.33
12250
12166.67
12083.33
12000
11916.67
11833.33
11750
11666.67
11583.33
11500
11416.67

3000
2916.67
2833.33
2750
2666.67
2583.33
2500
2416.67
2333.33
2250
2166.67
2083.33

8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33

11333.33
11250
11166.67
11083.33
11000
10916.67
10833.33
10750
10666.67
10583.33
10500
10416.67

2000

8333.33

10333.33

66500

100000

54500

100000

42500

100000

30500

100000

291,667
283,333
275,000
266,667
258,333
250,000
241,667
233,333
225,000
216,667
208,333
200,000

Total (Year5)
61

100000

391,667
383,333
375,000
366,667
358,333
350,000
341,667
333,333
325,000
316,667
308,333
300,000

Total (Year4)
49
50
51
52
53
54
55
56
57
58
59
60

78500

491,667
483,333
475,000
466,667
458,333
450,000
441,667
433,333
425,000
416,667
408,333
400,000

Total (Year3)
37
38
39
40
41
42
43
44
45
46
47
48

Principal (Yearly)

591,667
583,333
575,000
566,667
558,333
550,000
541,667
533,333
525,000
516,667
508,333
500,000

Total (Year2)
25
26
27
28
29
30
31
32
33
34
35
36

Yearly Interest

191,667

Paliwala's Bakers Sweet Mart
62
63
64
65
66
67
68
69
70
71
72

1916.67
1833.33
1750
1666.67
1583.33
1500
1416.67
1333.33
1250
1166.67
1083.33

8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33

10250
10166.67
10083.33
10000
9916.67
9833.33
9750
9666.67
9583.33
9500
9416.67

183,333
175,000
166,667
158,333
150,000
141,667
133,333
125,000
116,667
108,333
100,000

Total (Year6)
73
74
75
76
77
78
79
80
81
82
83
84
Total (Year7)

1000
916.67
833.33
750
666.67
583.33
500
416.67
333.33
250
166.67
83.33

8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33
8333.33

9333.33
9250
9166.67
9083.33
9000
8916.67
8833.33
8750
8666.67
8583.33
8500
8416.67

18500

100000

6500

100000

91,667
83,333
75,000
66,667
58,333
50,000
41,667
33,333
25,000
16,667
8,333
0

Paliwala's Bakers Sweet Mart

Project Costing
Uses

Land
Building
Plant & Machinery
Furniture & Fixture
Office Equipment
Cash & Bank Balance

Rs.

2000000
200000
400000
200000
25000
435000

Total Uses

3260000

Sources
Long Term Loan
Capital

700,000
2560000

Total Sources

3,260,000

Paliwala's Bakers Sweet Mart

Depriciation Assumption Sheet
Fixed Assets
Cost
Building
200000
Plant & Macinery
400000
Furniture & Fixture
200000
Office Equipment
25000
Total Depreciation Expense
Acc Depriciation - Building
Acc Depriciation - Plant & Machinery
Acc Depriciation - Furniture & fixture
Acc Depriciation - Office Equipment

Life (Years)
20
10
10
5

Year1
10000
40000
20000
5000
75000

Year2
10000
40000
20000
5000
75000

Year3
10000
40000
20000
5000
75000

Year4
10000
40000
20000
5000
75000

Year5
10000
40000
20000
5000
75000

10000
40000
20000
5000

20000
80000
40000
10000

30000
120000
60000
15000

40000
160000
80000
20000

50000
200000
100000
25000

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