Financial Plan

(Trading)

By

Tahbeer Iqbal
Sep 04, 2021
 Start up Capital
Facilities & Equipment Requirement

Sr. No. Of Cost per Amount

No Description Units Unit (Rs.) (Rs.)
25,00
1 Laptop 2 0 50,000
2,00
2 Internet Connection 1 0 2,000
10,00
3 Electricity Connection 1 0 10,000
12,00
4 UPS 1 0 12,000
50,00
5 Air Conditioner 1 0 50,000
25,00
6 Furniture and Fixtures   0 25,000
30,00
7 Security Deposit (Office)   0 30,000
7,00
8 Printer 1 0 7,000
20,00
9 Digital Marketing   0 20,000
10,00
10 Legal Fee   0 10,000
Company Registration/Incorporation 25,00
11 Fee   0 25,000
TOTAL → A 241,000

Working Capital
 Sr.
No Description Per Month Cost (Rs.)
1 Office staff 3 months’ salary 180,000
2 Rent expense of 3 months 30,000
3 Electricity Bill of 3 months 18,000
other utilities expenses of 3
4 months 21,000
5 Marketing Expense of 3 months 15,000
TOTAL → B
264,000

Start Up Capital
Sr. No Description Amount (Rs.)
Facilities & Equipment
1 requirement (same as A) 241,000

2 Working Capital (Same as B) 264,000

Total Start-up capital Required 505,000

SOURCES OF FINANCE
  Capital structure Amount (Rs.)
29
Equity   0,000
29
Debt   0,000

Sales
 No. of units
Month likely to be sold Selling Price Revenue (Rs.)
1 40 3,500 140,000
2 49 3,500 171,500
3 37 3,500 129,500
4 52 3,500 182,000
5 65 3,500 227,500
6 59 3,500 206,500
7 75 3,500 262,500
8 69 3,500 241,500
9 83 3,500 290,500
10 76 3,500 266,000
11 96 3,500 336,000
12 98 3,500 343,000
Total 2,796,500

COS
Product Cost per Unit No. of Units Unit/Rate Amount (Rs.)
1,1
Purchasing Cost 799 1,500 98,500
1,1
TOTAL   98,500

Profit & Loss Statement

  Year-0 Year 1 Year 2 Year 3 Year 4
3,1 3,120, 4,074,00
Revenue   2,796,500 50,200 000 0
(1,40 (1,520, (2,134,00
Less: CGS   (1,198,500) 9,300) 000) 0)
1,7 1,600, 1,940,00
Gross Profit   1,598,000 40,900 000 0
Less: Other Operating (1,15 (1,195, (1,265,40
expenses   (1,177,400) 5,400) 400) 0)
5 404 674,60
Operating Profit   420,600 85,500 ,600 0
Less: Loan Interest (2 (23, (23,20
expenses @8%   (23,200) 3,200) 200) 0)
Less: Other Miscll. (9 (97, (113,50
expenses   (70,000) 0,000) 000) 0)
4 284 537,90
Profit Before Tax   327,400 72,300 ,400 0
(11 (71, (134,47
Less: Tax (25%)   (81,850) 8,075) 100) 5)
3 213 403,42
Profit After Tax   245,550 54,225 ,300 5

Balance Sheet
  Year-0 Year 1 Year 2 Year 3 Year 4
ASSETS          
20, 17,50
Office Furniture 25,000 22,500 000 0 15,000
40, 35,00
Air Conditioner 50,000 45,000 000 0 30,000
40, 35,00
Laptops 50,000 45,000 000 0 30,000
5, 4,90
Printers 7,000 6,300 600 0 4,200
9, 8,40
UPS 12,000 10,800 600 0 7,200
297, 370,50
Inventory 75,000 225,000 500 0 424,600
Security 30, 30,00
Deposit (Office) 30,000 30,000 000 0 30,000
Preliminary
Expenses 67,000 - - - -
393, 190,65
Cash at Bank - 368,600 925 0 320,600
42, 56,35
Cash In hand 264,000 32,350 600 0 41,825
879, 748,30
Total Assets 580,000 785,550 225 0 903,425
EQUITY          
290, 290,00
Opening Capital 290,000 290,000 000 0 290,000
354, 213,30
Profit - 245,550 225 0 403,425
(55, (45,00
Drawings - (40,000) 000) 0) (80,000)
589, 458,30
Total EQUITY 290,000 495,550 225 0 613,425
LIABILITIES          
290, 290,00
Loan 290,000 290,000 000 0 290,000
Total Equity & 879, 748,30
Liabilities 580,000 785,550 225 0 903,425

Ratios
  Year-0 Year 1 Year 2 Year 3 Year 4
GPM   57% 55% 51% 48%
NPM   9% 11% 7% 10%
ROE   85% 71% 36% 88%
Break Even Point
Break-even point Year-0 Year 1 Year 2 Year 3 Year 4
Illustration (Break-
even Point)          

Break-even point =   589 550 598 633

Payback Period
Year Cash Flows Cumulative Cash Flows
0 (580,000) (580,000)
1 435,000 (145,000)
2 599,900 454,900
3 419,000 873,900
4 689,000 1,562,900
   
Payback
Period =  
=Year before full recovery+(Operating
Profit/Revenue)
1+(599,900/2,796,500)
1.21Years