ACHARYA ELECTRONICS

BHAKUNDEBESI 07, NAMOBUDDHA

KAVRE NEPAL

PROJECT FEASIBILITY REPORT

Prepared by Gayatri Acharya

2020

PROJECT SYNOPSIS

Project Name: Acharya Electronics

Promoters: Gayatri Acharya

Project Designer: Gayatri Acharya

Project Highlights: Trading of Electronic items

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Project Location: Namobuddha 07, Bhakundebesi Kavre

Market Size: Local Market

Project Cost: 20,00,000.00 NPR

1. Introduction

Bhakundebesi is a market hub of Namobuddha Municipality. In other word it is a

emerging city in Kavre district. Therefore being a lady I am interested to do some
different thing beyond my household work. Thus I have planned for trading of
electronics item near my home. So I started trading with it and selling of
electronics items in Bhakundebesi.
.

2. Team

Gayatri Acharya ( Proprietorship)

6. The Basic of Business

Purchasing the electronics materials from the wholesaler and trade it in the local
market.

7. Market demographics and methodology

Need of people are increasing day by day. Also the development works are
undergoing rapidly. Therefore, the demand of electronics items is high.
Customers themselves visit the shop and take the items as per their need.

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8. Project

This project aims to fulfill the purchasing interest of local public of the city
regarding the electronic items.

Marketing Objectives

Primary goals of the project are measurable which must be responsible for
the control and ultimate achievement while being valid for a designated
time period.

Marketing Strategies

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14. Financial Objectives

Generate sales on day to day basis and increase the no of transaction day by day
by which I can increase the transaction in volume and can maintain the grown of
business in term of amount, gross margin as well as net margin.

Schedul 2076-77
Particulars 2077-78 2078-79 2079-80
e (Provisional)
           
Income          
1,867,8 2,930,6 3,370,2 4,280,1
- Sales 20 10 01 55

- Other Income       -

Total Income   1,867,820 2,930,610 3,370,201 4,280,155

           
1,467,4 2,243,7 2,647,7 3,362,6
Less: Cost of Sales   36 95 69 66
           
400,3 686,81 722,4 917,4
Gross Operating Profit   84 4 32 89
           
217,8 251,52 251,2 275,3
Administrative Expenses 21 4 12 34

Staff Bonus Expenses   - - - -

Selling & Distribution Expenses   - - - -

Profit Before Depreciation and 182,5 435,29 471,2 642,1
Interest   63 0 20 55
           
24,3 67,2 72,28 96,72
Depreciation 33 67 1 5
           

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 158,2 368,02 398,9 545,4
Profit /(Loss) Before Interest   29 3 39 30
           
180,00 180,0 180,0
Financial Expenses - 0 00 00
           
158,2 188,02 218,9 365,4
Profit /(Loss) Before Tax   29 3 39 30

MARKETING MIX

PRODUCT STRATEGY

It is superior product in terms of quality and service life cycle. The product will be
readymade Electronic items.

PRICE STRATEGY

The product even with its super features as compared to quality product will be
marketed at a similar price. It is easier to penetrate the market by offering a
superior product at lower prices.

PROMOTION STRATEGY

 A promotion strategy includes gifts and targeting local customers. The

promotional strategy will also depend upon the market penetration and
the awareness level.
 Prompt and efficient services will be provided to the potential
customers.
 Efficient and effective services will be provided at the point of sales with
unique value proposition.

ADVERTISING AND PROMOTION

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Advertising will be planned as per the need of competitive market. If required
advertising and promotion will be done in the minimum cost range.

STRUCTURE AND REPAYMENT OF LOAN FROM BANK

There will be total loan of NRS. 15 Lakh as Overdraft Loan. Interest will be paid
timely and renewal of loan will be done on annual basis as per the need of bank.
All the loan amount of the bank will be settled at the end of 3 years from the date
of releasing the loan from the bank.

SN Particulars Amount Remarks

       

1 Total Overdraft Loan 1,500,000.00  

       

2 Interest per Annum 52,500.00 3.50%

       
       

STATEMENT OF WORKING CAPITAL REQUIREMENT

S.N
Particulars Coefficient 2076-77 2077-78 2078-79 2079-80
o
         
A Current Assets  
1,861,049.00 3,690,097.93 3,744,231.63 4,290,295.75
         
1 Accounts Receivables 90 Days
138,569.00 1,523,407.56 1,255,475.63 1,566,355.75
         
2 Inventory 30 Days
1,722,480.00 2,166,690.37 2,488,756.00 2,723,940.00
a Raw Materials
- - - -
b Finished Goods
1,722,480.00 2,166,690.37 2,488,756.00 2,723,940.00
         
Advances
3 Lump Sum - - - -

a Staff and Office -

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 Advances - - - -

         

4 Operational Cash Lump Sum - - - -

         

B Current Liabilities   3,697.00 88,647.00 107,430.00 207,778.00

1 Trade Creditors 30 Days 1,047.00 85,997.00 104,780.00 205,128.00

2 Other Payables Lump Sum 2,650.00 2,650.00 2,650.00 2,650.00

         
C Working Capital          

  Net Working Capital 1,857,352.00 3,601,450.93 3,636,801.63 4,082,517.75

Increase in Working
  Cpital   - 1,744,098.93 35,350.71 445,716.11
         
D Sources of Financing          

  Short Term Loan - 1,500,000.00 1,500,000.00 1,500,000.00

  Equity (Floating Equity) 1,857,352.00 2,101,450.93 2,136,801.63 2,582,517.75

  Interest - 52,500.00 52,500.00 52,500.00

             
70% Of Net Working
B Capital - 2,521,015.65 2,545,761.14 2,857,762.42
Proposed short term Loan in
  Percentage 42% 41% 37%
             

SCHEQULE OF ANNUAL COST

Particulars 2076-77 2077-78 2078-79 2079-80

         

A.Fixed Cost 148,053.48 383,235.01 388,135.83 425,165.66

         

1.Overheads and Depreciation 63,720.15 75,968.34 75,855.00 82,440.49

         
Office Staff Salary (incl. One Month
Bonus) - - - -
Other Administrative Costs 63,720.15 75,968.34 75,855.00 82,440.49

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2. Depreciation and Repair and

Maintenance 24,333.33 67,266.67 72,280.83 96,725.17
Maintenance of Plant and Machinaries
and Factory Set Up - - - -
Depreciation 24,333.33 67,266.67 72,280.83 96,725.17
         
3. Insurance - - - -
Insurance Cost - - - -
         

4. Land rent 60,000.00 60,000.00 60,000.00 66,000.00

Leasehold Land Rent 60,000.00 60,000.00 60,000.00 66,000.00
         
5. Financial Expenses & Charges - 180,000.00 180,000.00 180,000.00
Interest on Working Capital Loan - 52,500.00 52,500.00 52,500.00
Other banking & financial charges - 127,500.00 127,500.00 127,500.00
         
6. Pre Operating Expenses Written Off - - - -
Pre operating Expenses W/off during the
year - - - -
         

B. Variable Cost 94,100.96 115,555.97 115,357.42 126,893.16

         

Other Variable Cost 73,345.56 90,068.35 89,913.59 98,904.94

Printing & Stationary Expenses 10,871.94 13,350.74 13,327.80 14,660.58
Telephone Expenses 22,002.73 27,019.35 26,972.92 29,670.21
Transportation Expenses 17,500.00 21,490.00 21,453.08 23,598.38
Lunch & Tiffin Expenses 7,198.47 8,839.72 8,824.53 9,706.99
Guest & Entertainment 15,772.43 19,368.54 19,335.26 21,268.79
         

5.Utility Cost 9,584.00 11,769.15 11,748.93 12,923.83

Electricity & Water Cost 9,584.00 11,769.15 11,748.93 12,923.83

         

6.Miscellaneous Expenses 11,171.40 13,718.47 13,694.90 15,064.39

Other Expenses 11,171.40 13,718.47 13,694.90 15,064.39
         

Total 242,154.44 498,790.98 503,493.25 552,058.82

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Cost of Capital/Equity

Calculation Of cost Of capital

   
Acharya Electronics
Particulas   2076-77 2077-78 2078-79 2079-80  
Fixed Capital 1,000,000 1,000,000 1,000,000 1,000,000
NP  
R
Floating Capital 1,000,000 1,500,000 1,500,000 1,500,000
NP  
R
Others/Unsecured/secured 155,729 1,341,252 1,557,691 1,920,622
NP  
R
Total 2,155,729 3,841,252 4,057,691 4,420,622  
NP
R