BUSINESS CASE INR

Year 1 Year 2
Description Numbers Avg Cost Total Cost Y1 Numbers Avg Cost
Capex
Laptops 7 80,000 560,000 186,667
Mositure meter 4 20,000 80,000 26,667
Opex
Head (Salary) 1 2,500,000 2,500,000 2,500,000
BD (Salaries) 4 1,200,000 4,800,000 4,800,000
Operation (Salary) 1 1,000,000 1,000,000 1,000,000
Operations exe 1 600,000
Marketing Expenses 555,556
Sales Travelling expenses 666,667
Inspectors 4 20,000
Inspection cost 110 2,000 220,000 240 2,000
Bad debts 138,889
Total Cost 10,094,444
Net Profit -7,316,667
Profit in % -263.40

Target/Revenue 2,777,778

NOTE: 6 months provision of working capital

ASSUMPTIONS:
Capex:
Laptop Avg cost is consiedered INR.80,000/- with 3 years depreciation.
Moisture meter cost is considered INR 20,000/-with 3 years depreciation

Opex:

Salary Increement: 9% (Average)

Marketing Expenses: 10% of Revenue

Sales Travelling Expenses: 12% of Revenue (1st &2nd year) and 10% of Revenue in (3rd year)

Inspectors: 4 Inspectors to be recuirted in 2nd year

2 new inspectors in 3rd year

Operations Exe : One operation executive in 2nd year

Inspection Cost: 2000 (Avg) per manday inspectors cost

Bad Debts: 0.05% of Revenue

Number of Inspections:
1st year expected inspections 10 per month after 6 months (from 2nd half of the year)
2nd year 20 inspections per month
3rd year 35 inspections per month
Year 2 Year 3
Total Cost Y2 Numbers Avg Cost Total Cost Y3

186,667 186,667 186,667

26,667 26,667

2,725,000 2,970,250
5,232,000 5,702,880
1,090,000 1,188,100
600,000 600,000 654,000
1,666,667 2,000,000
1,666,667 2,000,000
960,000 960,000 2 20,000 480,000 1,526,400
480,000 420 2,500 1,050,000
833,333 1,000,000
15,467,000 18,304,963
1,199,667 1,695,037
7.20 8.48

16,666,667 20,000,000
Revenue for Three years Year 1 Year 2 Year 3
North 1,111,111 6,666,667 8,000,000
West (Maharashtra, Gujarat & MP) 1,111,111 6,666,667 8,000,000
South 555,556 3,333,333 4,000,000
Targeting Revenue in 3 years 2,777,778 16,666,667 20,000,000

1. Considered only 6 months revenue in 1st year

2. In Year 3 considered 20% yoy growth vs year 2