You are on page 1of 1

Assumptions

Followings are the assumptions taken:

I. Increase in the sale @ 25 %


II. Increase in the stock @ 20%
III. Purchase will increase @ 30%
IV. Operating expense will increase at the rate of 10% p.a
V. Limit of credit purchase will be 10% of the total purchase
VI. Limit of the credit sales will be 20% of the in first year and 15% for next 3 years
VII.Interest rate on the HBL loan is 9% p.a
VIII.Interest rate from the ABM AMRO bank @ 8.5% p.a
IX. Stock of the business will be increase at the rate of the 20% p.a
X. Depreciation will be charged at the 10% p.a on the assets
XI. Dividend paid to the stockholders @ of 5% in the first two years and rest of the
two years it will be double of the previous amount.
XII.Loan that we repayments to HBL @ of 15% and to ABM AMRO @10% p.a
XIII.Income tax will be 15% p.a
XIV.Drawing made in the 4th year of the 25,000 rupees
XV.In 3rd year amount of rupee 200,000 invested in the bank Standard charter
receiving 20% interest p.a