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    Financial Plan Atstyle

    Uploaded by

    M.Shahnam
    The document outlines the components needed for a financial plan including start-up capital requirements, sources of financing, projected financial statements, and metrics to evaluate financial attractiveness. It estimates that Rs. 758,000 is needed for initial equipment, facilities, and working capital. The plan proposes funding this amount through 6.6% equity of Rs. 50,000 and 93.4% debt of Rs. 708,000. Projected income statements and balance sheets are provided along with calculations for net profit margin, return on equity, break-even point, and payback period to evaluate the venture's prospects.

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    Financial Plan Atstyle

    Uploaded by

    M.Shahnam
    40 views4 pages
    The document outlines the components needed for a financial plan including start-up capital requirements, sources of financing, projected financial statements, and metrics to evaluate financial attractiveness. It estimates that Rs. 758,000 is needed for initial equipment, facilities, and working capital. The plan proposes funding this amount through 6.6% equity of Rs. 50,000 and 93.4% debt of Rs. 708,000. Projected income statements and balance sheets are provided along with calculations for net profit margin, return on equity, break-even point, and payback period to evaluate the venture's prospects.

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    Financial plan Atstyle

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    The document outlines the components needed for a financial plan including start-up capital requirements, sources of financing, projected financial statements, and metrics to evaluate financial attractiveness. It estimates that Rs. 758,000 is needed for initial equipment, facilities, and working capital. The plan proposes funding this amount through 6.6% equity of Rs. 50,000 and 93.4% debt of Rs. 708,000. Projected income statements and balance sheets are provided along with calculations for net profit margin, return on equity, break-even point, and payback period to evaluate the venture's prospects.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    40 views4 pages

    Financial Plan Atstyle

    Uploaded by

    M.Shahnam
    The document outlines the components needed for a financial plan including start-up capital requirements, sources of financing, projected financial statements, and metrics to evaluate financial attractiveness. It estimates that Rs. 758,000 is needed for initial equipment, facilities, and working capital. The plan proposes funding this amount through 6.6% equity of Rs. 50,000 and 93.4% debt of Rs. 708,000. Projected income statements and balance sheets are provided along with calculations for net profit margin, return on equity, break-even point, and payback period to evaluate the venture's prospects.

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    of 4

    COMPONENTS OF FINANCIAL PLAN

    1. Start-up Capital Requirement


    2. Sources of Finance
    3. Prospected Financial Statements
    4. Financial Attractiveness

    Equipment and facilities

    Serial # Description No. Of Units Cost per Unit Amount


    (Rs.) (Rs.)
    2 Air Conditioner 2 75,000 150,000

    3 Fan 3 6,000 18,000

    4 Laptops (SERVER) 2 50,000 100,000

    6 Furniture - - 80,000

    7 Other Office Supplies - - 20,000


    (Stationery, Internet device etc.)
    8 Internet Connection 1 6,000 6,000

    9 Electricity Connection 1 10,000 10,000

    11 Legal Fee - - 30,000

    12 Office Security Deposit 1 100,000 100,000

    ,TOTA 514,000
    L
    Working capital
    Serial # Description Per month cost (Rs.)
    1 Electricity expense 40,000
    2 Salaries expense 90,000
    3 Office rent 50,000
    4 Maintenance expense 20,000
    5 Marketing expense 40,000
    6 Internet expense 4,000
    Total 244,000
    For 12 month= 12 x 244,000 2,928,000

    Start-up Capital Requirement


    Serial # Description Amount (Rs.)
    1 Facilities & Equipment requirement 514,000

    2 Working Capital 244,000


    Total Start-up Capital Required 758,000

    SOURCES OF FINANCE

    Description Percentage Amount (Rs.)


    Equity 6.6 % 50,000
    Debt 93.4 % 708,000

    Income Statement

    Serial # Description Amount (Rs.)


    1 Revenue 3,834,400
    2 Operating Expenses 2,928,000
    3 Operating Profit 906,400
    4 Less: Business Tax (29%) 262,856
    5 Net Income after tax 643,544
    Balance Sheet

    Asset Amount Liabilities & Equity Amount


    (Rs.)
    AC 150,000 Debt 708,000
    Fan 18,000 Equity 50,000
    Laptop 100,000
    Security deposit 100,000
    Office supplies 20,000
    Furniture 80,000
    Internet device 6,000
    Cash (working capital) 244,000
    Legal fee 30,000
    Electricity connection 10,000
    Total 758,000 Total 758,000

    Prospected Financial Statements

    Suit service
    Month No. of Tailor No. of Profit price Revenue per Revenue
    customers margin (average per sale (Rs.) (Rs.)
    suit)
    1 5 70 20 % 1600 320 22,400
    2 10 200 20 % 1600 320 64,000
    3 15 350 20 % 1600 320 112,000
    4 20 500 20 % 1600 320 160,000
    5 25 650 20 % 1600 320 180,000
    6 30 900 20 % 1600 320 208,000
    7 35 1,150 20 % 1600 320 368,000
    8 45 1,350 20 % 1600 320 432,000
    9 50 1,550 20 % 1600 320 496,000
    10 55 1,700 20 % 1600 320 544,000
    11 65 1,900 20 % 1600 320 608,000
    12 70 2,000 20 % 1600 320 640,000
    Total 3,834,400

    Total Tailors in one year = 70


    Total customers in one year = 3,834,400
    Financial attractiveness
    Calculations
    Net Profit Margin Net profit after tax × 100
    Revenue

    1. Net Profit Margin = 643,544/3,834,400 × 100 = 16.78%


    2. Return on Equity = Net profit after tax x 100
    Equity at start of year

    3. Return on Equity = 643,544/50,000 × 100 = 1,287.088%


    Break Even analysis = "Annual Operating Expenses" /"Per Unit Contribution"

    Break Even = 244,000/320 =763 customers in 6th month

    Payback period = Years before full recovery + "Operating Profit" /"Revenue"

    4. Payback period = 0 + 906,400/3,834,400 = 0.236 years

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