Project report

On
Grocery Marketing
 Prepared for:
Kathmandu Multi Agro Pvt. Ltd.
Kathmandu Metropolitan City-32
2078

Table of contents

Chapter Content

Executive Summary

Production Status

Location Aspect

Management & Organization

Financial Evaluation

Conclusion & Recommendations

2
 Annexes
Financial Structure

Fixed Assets Investment

Estimation of Annual Operating Cost

Estimated Sales Revenue

Working Capital Estimation

Annual Cost

Profit & Loss Statement

Cash Flow Projection

Projected Balance Sheet

Tables

3
 Executive summary

As Nepalis prepare for the annual rice planting day on 29 June by wading into flooded paddy
fields, it is a time to remind ourselves that the country is more dependent on the import of this
staple than ever before.

Just one statistic says it all: the productivity growth of rice in Nepal in the last 54 years was
1.5% and has not kept up with the population growth rate of 2.3%. Nepal’s per capita rice
consumption per year in Nepal is 137.5 kg, one of the highest in the world, but  we do not
produce enough rice in the country.

Additionally, the spread of roads and better income means more people are switching to rice,
and the demand for branded fine, aromatic, and long grain rice is increasing. The share of
rice in total cereal consumption has gone up to 67% as people abandon traditional nutrient-
dense food like maize, finger millet, buckwheat, barley, foxtail millet, and amaranth. Still, rice
contributes 40% of the energy and 23% of protein in a Nepali’s daily diet.

Project Background
Kathmandu Multi Agro Pvt. Ltd. aims to sell Daily Different quality of rice in Kathmandu Vallery
with attractive packaging materials. In view of its primary being an agrarian society and of its
urgency of catching up the nation in industrial development, Marketing is essential. Marketing of
daily grocery items, such as rice, pulse, peas, chili, potatoes, and Spices etc in the valley is the
target selling items of the different traders. The launch of the consumer items is feasible as
required precondition such as client network; financial sector development and other
necessities already exist.
This trading enterprise is in ward no-32, Kathmandu Metropolitan city. The project aims to
increase its capacity up to around Rs. 240822 thousand yearly. For the purpose it must
purchase more paddy and rice from reputed mills and resell it with handsome margin. So, to
achieve this goal, it is looking forward for investment in the project. It is expected that the
project needs Rs.40000 thousand short-term loans from the financial institution. Rest of the
total project cost will be equity participation. The shop is in the prime location of the city. This
shop has already permitted license to perform its transaction.
This Business is registered in the office of Commerce Division, Ministry of Commerce and
Supply Nepal Government under the act. This Trading house must sell different quality of
grocery items in all seasons.

4
Management Aspect

A qualified team members headed by proprietor Mr. Madhav Karki has been successfully
running the business. The project has been haring indirect & direct labor on contract basis. The
demands for the daily consumer items such as rice will be from the people of the local area and
from all over the country.

Financial Aspect

The Total project cost will be Rs. 57741 thousand including fixed assets investment at Rs. 1100
thousand and working capital of Rs. 56641 thousand at 100% sales utilization. Rs. 40000
thousand of working capital will be financed through financial Institution at 12 percent interest
rate.

All the financial Indicators are positive and attractive. The project Break-Even-Point (BEP) has
been projected as 33%. BEP in Sales comes to Rs. 79933 thousand. The first year Sales
revenue has been projected as 240822 thousand as well as the operating cost will be of Rs.
224400 thousand in initial year. The net profit for the project for 1 st year of operation is projected
as Rs. 8399 thousand and the Average Benefit Cost Ratio is 1.19:1.

Project site:

The site is situated in Ward no-32, Kathmandu. The Project will take specious rented house for
marketing and for the purpose of owner quarter. The annual rent is expected Rs.150000. The
project has all infrastructure requisites like good road, water, power, and public utilities.

Project Cost:

The total fixed assets investment cost for the project is Rs. 1100 thousand. The owner invests
all the fixed investment. Likewise, total working capital requirement for the initial year is Rs.
56641 thousand. Rs. 40000 thousand is expected as short-term loan from financial institution.
The marketing process of the grocery items is simple. It is possible to train local people for
selling purpose. The Grocery items and its accessories required are easily available in the local
market. Rice is essential and important consumer items of Nepal. This is taken as one of the
most important necessary item of the general consumers of the world. Selling of rice is viable
venture in any part of the other trading, sufficient related parts abundantly available in all over
the major cities of the country. Considering all these factors the project has selected
Kathmandu Valley and other district’s suitable location for establishing a marketing center.
From the study on different aspect of the project, following inferences have been drawn.
Because of the growing population and increasing leaving standard of the people, consumers
have been cheated from the benefit of the standard quality Grocery items. Therefore, to give
consumer reasonable benefit and to supply different quality of rice in cheaper price this Trading
House is always in fray.

5
Sales promotion:
This Trading House is aiming to sell its items to local inhabitant. Shareholder of the business is
well known among all business circles with the reputed and premier businessman.
Supply Situation:
There are many trading firms in the area. General shops are substandard of which are not to
the expectation and quality desired by the rational buyer. However, some reputed shops sell
the quality items. This enterprise also has the quality at more competitive rates than that of
other same category items. So, for the growing demand for quality rice in the local market,
present supply situation does not seem sufficient. So, from the marketing point of view these
are huge markets of rice suppliers in Nepal.

Marketing is one of the major aspects in determining the success of any project. Daily uses
consumer items such as groceries are a widely acceptable item in all over World for all age of
people. It can be confidently said that selling of these Grocery items of the reputed business
houses without their limited production capacity, can be sold in zero inventory.

Towards the supply side of the market, there are many houses supplying standard quality rice
of different quality. Unless other shops are licensed, the situation of supply quality and cheaper
product is going not high per annum in the city. The gap thus resulting from supply and demand
situation will be almost remaining high.

If this business house will be capable to supply their Quality rice in the market continuously,
there will be no problem of selling the products.

Sales Revenue:

The main selling item is different varieties of rice, pulse, vegetables other cereal and spices.
The management envisages selling the items with the strategy of low margin profit and high
turnover for optimization of the profit of the consumer items. At present, the shop plans to sell
items worth Rs. 240822 thousand yearly.

6
 Production Status

Rice production status of Nepal

Only about 20% of Nepalese farmers have access to any kind of mechanization. Women bear
the brunt of the drudgery. Most are subsistence farmers, dependent on rainfed agriculture.
Rice is by far the most important crop of Nepal, primary source of livelihood and income for
more than two-thirds of farm households and it is deeply embedded in the country’s culture. It
contributes 20% to the Agricultural Gross Domestic Product (AGDP) and more than 7% to the
total GDP.

Figure 1. Rice production and productivity in Nepal from 2010 to 2019 (Source: MoALD, 2019).

But there is a huge rice yield gap – the difference between attainable yield and potential yield
which is between 45-55% in Nepal. Fluctuation in rice production is evident with low rice
productivity (Figure 1).

Increasing rice production, productivity and profitability would need knowledge of intensive rice
farming using best rice varieties and best management practices and linking production with
rice-based agri-food systems. That has not happened because of the lack of training, adequate
and quality inputs, climate change and seasonal variations in rainfall.

Limited surplus for rice and other crops coming to markets is therefore unsurprising. Half of
Nepal’s farmers produce only for their own consumption, 40% sell only when there is a surplus,
and only 10% are farming rice to sell. This situation is unlikely to change soon unless radical
action is taken.

Low agricultural surplus is the key reason for Nepal’s growing negative trade balance in food
products since 1990. Nepal imports rice worth $300 million each year mainly from India, making

7
it a major drain on the national budget. This diverts money away from food and nutrition
security, rural poverty, and delivery of sustainable development goals (SDGs).

Nepal, however, lacks the technical capacity, milling technology and a developed rice value
chain to work towards rice self-sufficiency even as demand grows.

Half of the world’s crop production in last century was attributed to the contribution of genetic
component alone. Nepal released 87 rice varieties (including two hybrids) until 2020. More than
two-thirds of genetic improvement in rice in Nepal came from the International Rice Research
Institute contributing about 3.78 million tons of rice production worth $890 million annually.

Fast-tracking deployment of new batches of high yielding, climate resilient and multi-stress
tolerant rice varieties is overdue to improve rice productivity. Nearly 85% of seeds used for rice
production are inbred varieties from farm-saved seeds. Ironically, rice production is still
dominated by old and obsolete rice varieties bred and disseminated during or before the 1990s.
Demand for hybrid rice seeds is picking up but is met through imports from India and China —
contributing to a growing negative trade imbalance.

Crops like rice need 17 elements (including trace elements) for their proper growth and
development. The attention is concentrated on urea (nitrogen), but there needs to be more
awareness about the other nutrients that the rice crop needs. Average nutrient use in Nepal for
all crops in last 11 years was 47 kg per hectare (Figure 2) which includes nitrogen, phosphorus,
and potassium – half of it used on rice.

As a rule of thumb, 100 kg of nitrogen is needed to produce 3 tons of rice per hectare and one
can understand how undernourished rice crops are in Nepal. We are expecting miracles in rice
productivity growth if we do not increase balanced nutrition.

Figure 2: Average quantity of plant nutrient (nitrogen, phosphorus, and potassium) used in crop production in Nepal from 2008 to 2018 (Source: MoALD,
2019).

Urban land expansion in the Tarai, Kathmandu, Pokhara and other towns rose from 221.1
km2 in 1989 to 930.2 km2 in 2016. This means 71,000 ha of land was converted into housing
and 93% of this was prime agricultural land suitable for rice cultivation.

8
Outmigration has also meant that 18-37% of farms have been abandoned in the mountainous
regions.

These trends have serious implications for food and nutrition security in the country. But this
change in land use pattern and land abandonment is hardly reflected in any government data
base of crop area coverage in Nepal.

The COVID-19 pandemic offers an opportunity to rethink health and livelihoods of low income
groups and vulnerable people in Nepal’s overall economy. However, this crisis  offers us the
chance to build technology intensive rice-based agri-food system in Nepal.

Now is the time to have a national discourse and consensus on the type of actions needed to
make the country self-sufficient in rice, improve productivity and profitability of rice-based
system using innovative solutions, create more jobs in rice-based agri-food systems for Nepali
youth and women by connecting production with the food systems and fully unlock the
immense potential of rice-based agri-food systems in Nepal for overall economic development.

Nepal needs to adopt technology-intensive farming to increase rice productivity by at least 1.5

times in next five years and reduce cost of production to make it competitive while protecting
the environment. This is best done by integrating climate resilient technologies and precision
rice farming practices widely.

A practical strategy could be to intensify climate resilient, high yielding and high quality
improved inbred varieties in at least 60% of the area, conserving and commercializing
indigenous rice landrace in about 15% while growing high-yielding and multi-stress tolerant
hybrid rice varieties in about 25% area.

Post COVID-19 agriculture extension can be totally transformed because 90% of Nepal’s

population now has mobile phones that can be used for sharing technical message during
critical growth stage of rice. Digital decision support tools such as Rice Doctor, Rice Crop
Manager, are also available, although some of these would need to be adapted for  Nepal.

Nepal lacks a critical mass of trained professionals in the National Agriculture and Research
Systems (NARES) that have limited exposure to new science, technologies, and innovations.
Moreover, their institutional set up is not aligned to respond to the changing needs of
transforming existing subsistence rice production into a technology intensive rice-based agri-
food system.

9
 Location Aspect

The Kathmandu Valley is the most developed and populated place in Nepal. Most offices and
headquarters are in the valley, making it the economic hub of Nepal. It is popular with
tourists for its unique architecture, and rich culture that includes the highest number
of jatras (street festivals) in Nepal. The valley itself was referred to as "Nepal Proper" by
British historians.

In 2015, Kathmandu Valley was hit by the April 2015 Nepal earthquake.[4] The earthquake
caused thousands of deaths and destruction of many infrastructures across the Kathmandu
Valley, which includes the towns of Lalitpur, Kirtipur, Madhyapur Thimi, Bhaktapur and the
municipalities across Kathmandu valley making the total population of roughly 1.5 million
people. Kathmandu is also the largest city in the Himalayan hill region. Kathmandu Valley
has total population of 2,517,023.It is proposed to Government of Nepal to develop
Kathmandu valley as a separate national capital territory and not a part of Bagmati Pradesh.
Kathmandu Valley consists of 3 Districts of Bagmati Pradesh of Which total population is
2472071 and total area is 902.61 square kilometres (348.50 sq mi)

District Area Population

Kathmandu 433.61 square kilometers (167.42 sq mi) 1,699,288

Bhaktapur 119 square kilometers (46 sq mi) 304,651

Latipur 350 square kilometers (140 sq mi) 468,132

Kathmandu NCT 902.61 square kilometers (348.50 sq mi) 2,472,071

10
 Management & Organization

Promoter Profile:
Mr. Madhav Karki is the main shareholder of this business. Mr. Karki and his experience team
has been monitoring the selling product executing as per originally planned cost estimate with
necessary controls and co-coordinator with other skilled people in valued in this Trading. She
will promote the items in the markets. The project will run effectively because of his long
outstanding association with management and operational executives of consumer items
marketing business of Nepal.
Management:
The Trading House will be advertised in local and national newspaper with attractive exposition
and information of the consumer items. The promoter is well known among all business circles
with the reputed and premier businessman. He will promote the business through the medium
of their present associations and relations with them.

11
 Financial Evaluation

1. Assumptions
Financial projections are based on the total project cost, Annual operating cost, and sales
Revenue. In these projections, it has been assumed that the proposed project will attain its full
selling target.
2. Investment Cost

The Total project cost will be Rs. 57741 thousand including fixed assets investment at Rs. 1100
thousand and working capital of Rs. 56641 thousand at 100% sales utilization. Rs. 40000
thousand of working capital will be financed through financial Institution at 12 percent interest
rate.

All the financial Indicators are positive and attractive. The project Break-Even-Point (BEP) has
been projected as 33%. BEP in Sales comes to Rs. 79933 thousand. The first year Sales
revenue has been projected as 240822 thousand as well as the operating cost will be of Rs.
224400 thousand in initial year. The net profit for the project for 1 st year of operation is projected
as Rs. 8399 thousand and the Average Benefit Cost Ratio is 1.19:1.
3. Fixed Assets
The estimates of fixed assets investment are outlined below:

Fixed Assets Investment

1 Equipment 500
     
2 Furniture & Fixture 500
     
3 Pre-operating Cost 100
     
     
  Total 1100

The whole amount of fixed asset investment i.e., Rs. 1100 thousand is stipulated to come from
owner's equity.

12
4. Working Capital
The requirement of working capital has been worked out based on stock, Account Receivable
and Cash Account payable. Out of the working capital requirements of Rs. 56641 thousand,
Rs.40000 thousand is anticipated to receive from financial institutions as short-term loan
financing 69% percent Rs. 17846 thousand from promoters as equity share contribution.
5. Operating Cost & Expenses
The project, based on its production planning, involves an operating cost & expenses
amounting Rs. 229248 thousand annually. It comprises fixed and variable cost of Rs. 5204
thousand and 16641 thousand.
6. Sales Revenue
The sales revenue from the sales of Grocery items will amount of Rs.240822 thousand in initial
year.
7. Cash Flow
Cash flow projections indicate favorable positions of accumulated cash balance of Rs. 9222
thousand in the first year to Rs. 52730 thousand in the 5th year.
8. Balance sheet
The projected balance sheet reveals an increase in the assets value from Rs. 6648 thousand in
the first year to Rs. 118893 thousand in the fifth year.
This increase is due to largely to the increase in the cash balance in respective year.
9. Other Financial Indicators
The BEP of the project is arrived at 33% whereas the Break Even in Sales is Rs. 79933
thousand. The Benefit cost ratio is 1:1.19.

13
 Conclusion and recommendation

Kathmandu Multi Agro Private Limited have warehouse in Kathmandu valley. and sell most of
its items to retailers of all major cities of Nepal. So, in this context it will help to generate
economic activities to some extent.
Demand & Supply
It has been observed that there is good local market for the grocery item such rice, pulse,
beans, vegetables, and kitchen spices such as ginger, Turmeric etc. all over the country.
However, there are others selling in the area, but the quality and standard rice items still in
large demand. So, in this state, there is still demand gap of standard quality in the market.
Location:
This Trading House established in Kathmandu district. This area is well equipped with all the
needful infrastructures such as transportation, electricity, water supply, telephone etc.
Manpower:
The project provides the employment to the 5 people. The number of direct and administrative
manpower is 1 and 4 respectively.
Financial Evaluation:

The Total project cost will be Rs. 57741 thousand including fixed assets investment at Rs. 1100
thousand and working capital of Rs. 56641 thousand at 100% sales utilization. Rs. 40000
thousand of working capital will be financed through financial Institution at 12 percent interest
rate.
Conclusion:
Based on market, technical, financial aspects to invest in project have been found feasible and
viable. So, to invest in this venture is attractive and viable with low risk factor.

14
 Annex-1

Financial Structure
(at initial year of operation)

Rs.in '000

A. Fixed Assets Investment 1100

a Term Loan @0% 0
b Owner's Equity @ 100% 1100

Initial Working
B. Capital 56641

a Short Term Loan 40000

b Owner's Equity 16641

Total Initial
C. Investment 57741

a Term Loan 0
b Short Term Loan 40000
c Owner's Equity 17741

15
 Annex-2
Fixed Assets Investment

1 Equipment’s 500

2 Furniture & Fixture 500

3 Pre-operating Cost 100

Total 1100

16
 Annex-3A
Annual Operating Cost and Expenses
(100% rated capacity)

Basic of Calculation;
300
Working days: days

A. FIXED COST Rs.in 000

Sn   Depreciation Unit Qnt Rate Amount Total
1   Depreciation         813
               
2   Amortization on Pre-operating Cost Rs. 100 10% 10 10
               

3   Administrative Expenses (see table)         4,756

               
    Total Fixed Cost         5579
               

17
 Annex-3B
Variable Cost
Rs.in 000
S.N.   Description Unit Qnt Rate Amount Total
               
1.   Direct Labour         300
  a Salesman-1 month 12 15000 180  
  b Helper-1 month 12 10000 120  
               
2.   Purchasing Material         218929
    (Detail on the table-1)          
               
3  Repair & Maintenance         15.0
  a) equipment Rs. 500 3% 15.0  
               
Interest on Short Term
4   Loan Rs. 40000 12.0% 4800 4800
               
    Total Variable Cost         224044
    Annual Operating Cost         229623

18
 Annex-4
Estimated Sales Revenue

Rs. '000
Products  
Year 1 2 3 4 5
Sales of Different grocery items 240822 252863 265506 278781 292720
( Details on table-1)          
Total Sales Revenue Rs. 240822 252863 265506 278781 292720

19
 Annex-5
Working Capital Estimation
000
Operating
Years         1 2 3 4 5
                   
I.   CURRENT ASSETS MDR COT          
A.   Inventory              
  I Purchasing Materials 60 5 36488 38313 40228 42240 44352
    Packaging Materials     1.8 1.8 1.9 1.9 1.9
    TOTAL     36490 38314 40230 42241 44353
B.   Account Receivable 30 5 20068 21072 22125 23232 24393
Cash in Hand (from iv
C.   below) 30 5 423 424 425 427 428
TOTAL CURRENT
    ASSETS     56981 59810 62781 65900 69175
CURRENT
II.   LIABILITIES              
    Account Payable     340.00 340.00 346.80 346.80 353.74
NET WORKING
III.   CAPITAL     56641 59470 62434 65553 68821
    Increase in W.C.     - 2829 2964 3119 3268
Total Short-term loan
    Required     40000 41998 44091 46294 48602
    Interest on STL     4800 5040 5291 5555 5832
    Equity     16641 17472 18343 19259 20220
CALCULATION OF
IV.   CASH              
  a Operating Cost     224000 234962 246472 258557 271246
  b Direct material     218929 229875 241369 253437 266109
    REQUIRED CASH     5071 5087 5103 5120 5137

20
 Annex-6
Annual Cost
Rs.in 000
Year   1 2 3 4 5
sales
Utilization  100% 100% 100% 100% 100%
             
1Direct Material 218929 229875 241369 253437 266109
2Direct Labour 300 315 331 347 365
3Repair & Maintenance 15.0 15.3 15.6 15.9 16.2
             
4PROJECT COST 219244 230205 241715 253801 266490
5Administrative Overheads 4756 4756 4756 4756 4756
             
6OPERATING COST 224000 234962 246472 258557 271246
7Financial cost 4800 5040 5291 5555 5832
  a.On Short-Term Loan 4800 5040 5291 5555 5832
Depreciation+
8 Amortization 823 823 823 823 823
             
TOTAL ANNUAL
9 COST 229623 240824 252585 264935 277901

21
 Annex-7
Projected Profit & Loss Statement
Rs in '000
Operating Years 1 2 3 4 5
           
Sales Revenue 240822 252863 265506 278781 292720
Less: Operating Cost 224000 234962 246472 258557 271246
GROSS OPERATING
PROFIT 16822 17901 19034 20224 21474
Less: Dep+Amor 823 823 823 823 823
Profit before interest & tax 15999 17078 18212 19402 20651
Less: Financial Cost 4800 5040 5291 5555 5832
Profit before interest tax 11199 12039 12921 13846 14819
Less: tax 2800 3010 3230 3462 3705
Net Profit 8399 9029 9691 10385 11114
Retained Earning 8399 17428 27119 37504 48618

22
 Annex-8
Cash Flow Projection
Rs.in '000
Operatin
g Year       1 2 3 4 5
                 
CASH
IN-
A. FLOW              
  1 a. Fixed Assets 1100 - - - - -
    b. Working Capital - 16641 831 871 916 960
                 
  2 Long-term Loan 0 - - - - -
  3 Short-term Loan - 40000 41998 44091 46294 48602
  4 Gross Operating Profit - 16822 17901 19034 20224 21474
                 
Total
Cash In-
flows     1100 73463 60730 63996 67434 71036
CASH
OUT-
B. FLOWS              
  1 Capital Expenditure 1100 - - - - -
  2 Repayment of STL - 0 40000 41998 44091 46294
  3 Interest on STL - 4800 5040 5291 5555 5832
  4 Working Capital - 56641 2829 2964 3119 3268
  5 Tax - 2800 3010 3230 3462 3705
                 
    Total Cash Out-flows 1100 64241 50879 53483 56227 59099
C.   NET CASH FLOW - 9222 9851 10513 11207 11937
ACCUMULATED
D.   CASH-FLOW - 9222 19073 29586 40794 52730
BCR 1.19

23
 Annex-9
Projected Balance Sheet

Rs. In '000
  Operating Years 1 2 3 4 5
             
A. ASSETS 66480 78338 91000 104503 118893
             
  1. Current Assets:          
  Purchasing Materials 36490 38314 40230 42241 44353
  Account Receivable 20068 21072 22125 23232 24393
  Cash in hand 423 424 425 427 428
  2. Accumulated Cash Balance 9222 19073 29586 40794 52730
  3. Fixed Assets (dep+Amor) 278 -545 -1368 -2190 -3013
             
B. LIABILITIES 66480 78338 91000 104503 118893
             
  1. Current Liabilities (account payable) 340.0 340.0 346.8 346.8 353.7
  2. Short Term Loan 40000 41998 44091 46294 48602
  3. Equity 17741 18572 19443 20359 21320
  4. Retained Earning 8399 17428 27119 37504 48618
  Rounding Error 0 0 0 0 0

24
 Annex-10
Break Even Analysis
Fixed Cost
1 Depreciation 813
2 Office overheads 4756
Total 5569

Variable Cost
1 Direct Labour 300
2 Purchasing Material 218929
3 Repair & Maintenance 15
4 Interest on Short Term Loan 4800
Total 224044

Sales Revenue 240822

BEP= Fixed Cost/(Sales Revenue-Variable Cost)*100

33 %
BEP in Sales 79933

25
 Amount in Rs.
Table-1
Purchasing Materials
Average
Sn. Item Unit Quantity Rate Amount Margin
1 Bhatman Kg 167000 70 11690000  
2 Mass Kg 124000 115 14260000 9%
3 Rajma Kg 153000 70 10710000  
4 Gahat Kg 99000 65 6435000  
5 Phaphar Kg 350009 40 14000360  
6 Jau Kg 54000 70 3780000  
7 Kodo Kg 266000 50 13300000  
8 Makai Kg 284000 50 14200000  
9 Aalu Kg 316000 59 18644000  
10 Masyang Kg 21000 95 1995000  
11 Badam Kg 2000 225 450000  
12 Chamal:          
a Basmati Kg 19000 155 2945000  
b Local Kg 24000 55 1320000  
c Marsi Kg 16000 200 3200000  
d Thapachini Kg 32000 70 2240000  
e Tichin Kg 36000 60 2160000  
f Pokhareli Kg 2000 85 170000  
13 Aduwa Kg 58000 60 3480000  
14 Besar Kg 2000 65 130000  
  Total       218928720 240821592

26
 Table-2
Amount in Rs.
Administrative Expenses
S.
2077/078 2078/079
N. Particulars 2079/080 2080/081 2081/082
3,000,00 3,600,00 4,320,00 5,184,00
1 Staff Salary 2,500,000 0 0 0 0
312,00 374,40 449,28 539,13
2 Insurance Expenses 260,000 0 0 0 6
200,40 240,48 288,57 346,29
3 Printing & Stationary Expenses 167,000 0 0 6 1
499,80 599,76 719,71 863,65
4 Guest Entertainment 416,500 0 0 2 4
738,00 885,60 1,062,72 1,275,26
5 Fuel & Conveyance 615,000 0 0 0 4
9,00 10,80 12,96 15,55
6 Newspaper & Magazine Exp. 7,500 0 0 0 2
150,00 180,00 216,00 259,20
7 Selling Commission 125,000 0 0 0 0
144,00 172,80 207,36 248,83
8 House Rent 120,000 0 0 0 2
28,50 34,20 41,04 49,24
9 Telephone Expenses 23,750 0 0 0 8
93,00 111,60 133,92 160,70
10 Internet Expenses 77,500 0 0 0 4
5,40 6,48 7,77 9,33
11 Water Electricity Exp. 4,500 0 0 6 1
115,80 138,96 166,75 200,10
12 Bank Charges 96,500 0 0 2 2
115,80 138,96 166,75 200,10
13 Rate & Taxes 96,500 0 0 2 2
265,93 319,11 382,94 459,53
14 Misc. Expenses 221,610 2 8 2 0
30,00 36,00 43,20 51,84
15 Audit Fee 25,000 0 0 0 0
5,707,63 6,849,15 8,218,99 9,862,78
  Total 4,756,360 2 8 0 8

27
 Property, Plant & Equipment
Rs. In 000
S.N. Group Opening Depn. Depn. Closing Depn. Closing Depn. Closing Depn. Closing Depn. Closing
Particulars Balance Rate Rs. 2078-079 Rs. 2079-080 Rs. 2080-081 Rs. 2081-082 Rs. 2082-083

1 Shade & Building A 0 - - - - - - - - - -

2 Furniture & Fixture B 500 0 63 438 109 328 82 246 62 185 46 138
3 Tools & Equipment B 500 0 125 375 94 281 70 211 53 158 40 119
4 Vehicle C - 0 - - - - - - - - - -
Total 1,000 188 813 203 609 152 457 114 343 86 257

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