You are on page 1of 21

Let’s Discuss!

HAMRO
GROCERY
Ashma Dixit
Dipin Pradhan
Ganesh Bist
Prabriti Neupane
Raksha Lama
Ujjwal Limbu Financial
Management
2019
OUR
/AGENDA
4

Agenda

Company
Profile

Initial Investment,
Expense and Revenue Model

Capital Budgeting
Techniques

Conclusion
Hamro • Online Business

Grocery • Groceries
• Operation inside the Kathmandu Valley
6

Flow of Goods

1 IMPORTS
2
STOCK
Dairy Dealers 3 DISTRIBUTION
Hamro
Grocery

Wholesalers of ( 6AM – 7PM ) • School / College


Food Grains, Canteens
Ingredients • Hostels
• Hotels
• Caterings
Balkhu
Wholesale
Vegetable
Market
7

Initial Investment

• 2 Maruti Vans • Web Operating Costs


• Office Furniture • Registration / Legal Cost
8

Initial Investment
.

1 Fixed Asset : Van and


Furnitures
2 Expenses

In year 0, out of 16 lakhs 50%


3 Legal Cost

43.8% 4 Web Operating Cost


9

Expenses & Revenue

Expenses Revenue

• Salary
• Subscription
Driver – 2, Helper - 2,
• Delivery Charge
Office Employees - 4
• Profit Margin
• Office Administration
• Online Advertisements
• Marketing Cost
• Office Rent
10

Capital Budgeting

The Scope of Capital Budgeting

Example

Financial Investment
Decision Decision
11

Pay Back Period

Cumulative Cash
Year Cash Flow (NRS) Flow
Pay Back Period
Year 0 -1600000.00
Year 1 500000.00 500000.00
=3 + (1600000-1576250)/206375
Year 2 525000.00 1025000.00
= 3.12 years
Year 3 551250.00 1576250.00
Year 4 206375.00 1782625.00
Year 5 727650.00 2510275.00
Year 6 836797.50 3347072.50
Year 7 903741.30 4250813.80
Year 8 948928.37 5199742.17
Year 9 996374.78 6196116.95
Year 10 1046193.52 7242310.47
12

3.12
13

Discounted Pay Back Period


Cumulative
Cash Flow Discounted Cash Discounted Cash
Year (NRS) Flow @10% Flow
DPBP
Year 0 -1600000.00 -1600000.00 = 4 + (1600000-1443548.94)
Year 1 500000.00 454545.45 500000.00 /451813.10
Year 2 525000.00 433884.30 1025000.00 = 4.35 years
Year 3 551250.00 414162.28 1576250.00
Year 4 206375.00 140956.90 1782625.00
Year 5 727650.00 451813.40 2510275.00
Year 6 836797.50 472350.37 3347072.50
Year 7 903741.30 463762.18 4250813.80
Year 8 948928.37 442682.09 5199742.17
Year 9 996374.78 422560.17 6196116.95
Year 10 1046193.52 403352.89 7242310.47
14

4.35
15

Yearly Discounted Cash Flow


Net Present Value
Year 0 -1600000.00
.

Year 1 454545.45

Year 2 433884.30

Year 3 414162.28

Year 4 140956.90
.

Year 5 451813.40
.

Year 6 472350.37
.

Year 7 463762.18
Year 8 442682.09

Year 9 422560.17

Year 10 403352.89
.

NPV@10% = 2500070.05
16
Internal Rate of Return

Discounted Cash Flow Discounted Cash Flow


Year Cash Flow (NRS) @10% @35%

Year 0 -1600000.00 -1600000.00 -1600000.00


Year 1 500000.00 454545.45 370370.37
Year 2 525000.00 433884.30 288065.84
Year 3 551250.00 414162.28 224051.21
Year 4 206375.00 140956.90 62132.96
Year 5 727650.00 451813.40 162275.77
Year 6 836797.50 472350.37 138234.92
Year 7 903741.30 463762.18 110587.94
Year 8 948928.37 442682.09 86012.84
Year 9 996374.78 422560.17 66898.87
Year 10 1046193.52 403352.89 52032.46
NPV: 2500070.05 -39336.82
17

34.15
18

Profitability Index

PI = 1 + NPV/Initial Cash Flow

= 1+ 2500070.05/1600000

= 2.56
THANK YOU
QUERIES?