FM Report

Finance for Managers
Feasibility Report

Table of Contents

S.no Particulars Page. no
1. Executive summary
2. Purpose of report
3 Location information
4 Advantages & disadvantages of location
5 Target Market
6 Sustainable competitive advantage
7 Strategy
8 SWOT Analysis
9
10 Organizational Chart
11 Cost of Ingredients
12 Sales forcast
13 Fixed assets
14 Over heads
15 Sales of Cold drink and
16 Raw material cost
17 Over head and Costing summary
18 Fixed Assets Schedule
19 Yearly sel ling trends
20 Purchases
21 Operating expenses
22 Financing requi red
23 Cash budget
24 Amorti zation table
25 Balance Sheet
26 Ratios
27 Appendix 1
28 Appendix 2
29 Appendix 3
30 Appendix 4
31 Appendix 5
32 Appendix 6
33 Appendix 7
34 Appendix 8
EXECUTIVE SUMMARY

The busy streets are a norm in Karachi and the city beach lives up to this
tradition. As twilight begins to wrap the streets of the city, people from
different areas come to enjoy the city life of Karachi. Karachi has many
cultures in it but one thing that every karachiite fond of is its authentic
chatpata taste that we can find in many faces like its Chaat, Pani puri, Bhel
puri etc. and therefore we start up our business of CHOPAATI HOUSE .

Food items like chaat and sev puri is not confined to any specific person, but
as its a light, spicy and tangy snack which is very popular among everyone.
We have chosen the ideal location of the long stretch of road, right across the
sea view apartments. There are few fast food restaurants and snack bars;
there are some small cafes rights outside the shore. We have chosen this
location because usually people come there to enjoy the sea breeze, to chit
chat with friends and to have a relaxing and a serene evening to enjoy and
have light snacks with some spicy taste in it. The number of people multiplies
over the weekends.

Moreover, we are the only people providing this kind of snacks in a hygienic
way on that location, which people really wanted to have in our city, apart
from this we will provide our customer with great taste and with the better
quality that would make them call on us every time they visit Sea view.

We desire to start business with PKR 1000000. 60% of which we are looking
for an investor. Forecasted sales of our products i.e Chaat, Sev Puri and Pani
Puri with cold drinks and the total expected sales we are getting is PKR
5,959,230.00 in the first year and by doing so we get the net income of PKR
1,140,394.75 in a year, in the same way in second year we are expecting
sales to be PKR 7,071,816.00 and PKR 1,296,164.62 net income and for the
third year our expected sales would be PKR 9,311,824.00 and we would be
making PKR1,904,813.76 of net income. So we can easily repay invested
amount with in 2 years time with reasonable interest rate on monthly basis.
This is good opportunity then to invest in bank, as investor cannot get this
much interest rate which we are offering.

Introduction

The busy streets are a norm in Karachi and the city beach lives up to this
tradition. As twilight begins to wrap the streets of beach, people from different
areas come to enjoy beach life of Karachi. Karachi has many cultures in it but
one thing that every karachiite fond of is its desi chatpata taste that we can
find in many faces like its Bhel puri, paratha roll, chana chat, Pani Puri fruit
chat etc. and therefore we start up our business of chatpata items that are
CHAAT ,PANI PURI AND SEV PURI.

Purpose of report:-

This report clearly reveals and satisfies all the known criteria that are kept
in mind while opening a new business of chatpata snacks such as Chaat,
Pani Puri and Sev Puri and, moreover through this report we are looking
to attract a financer, who is willing to provide some amount of his money in
our business, and can be our partner.

LOCATION OF THE OUTLET:
We have chosen the ideal location of the long stretch of road, right across the
sea view apartments. There are few fast food restaurants and snack bars;
there are some small cafes rights outside the shore.

Dimensions & costs:-
The rent which we will pay for this shop is PKR 30000.

ADVANTAGES OF LOCATION:
Some of the advantages of our location are as follows:
Over 1000 customer visit the adjoining caf and tens of thousands people
walk past the caf every evening. We would have the benefit of huge
market there.
Usually people come there to enjoy the sea breeze, to chit chat with
friends and to have a relaxing and a serene evening to enjoy and have
light snacks with some spicy taste in it.
On weekends the numbers of customers multiply

DISADVANTAGES OF LOCATION:
Some of the disadvantages of our location are as follows:
There is a huge problem of humidity, therefore we would need high
maintenance, and amount of products should be according to sales we
make in a day.
Excessive amount of food can lead to loss.
The natural calamities and disasters can also be major disadvantage of
our location.

LIST OF EMPLOYEES

Amount
Sulurles Qty Rute 2010 2011 2012
Supervlsor 1 6,000 6,000 6,600 7,260
Louder 4 5,000 20,000 22,000 24,200
Asslstunts 2 1,800 3,600 3,960 4,356
Accountunt 1 3,500 3,500 3,850 4,235
Drlver 2 8,000 16,000 17,600 19,360
Sec. Guurd 1 6,500 6,500 7,150 7,865
Sweeper & Peon 2 5,000 10,000 11,000 12,100
Monthly Totul

65,600 72,160 79,376
Yeurly Totul

787,200 865,920 952,512
Employee Beneflts 5% 39,360 43,296 47,626
Totul Sulurles & Beneflts

826,560 909,216 1,000,138

OPERATING EXPENSES

OPERATING EXPENSES

Amount

Sulurles Qty Rute 2010 2011 2012

Supervlsor 1 6,000 6,000 6,600 7,260

Louder 4 5,000 20,000 22,000 24,200

Asslstunts 2 1,800 3,600 3,960 4,356

Accountunt 1 3,500 3,500 3,850 4,235

Drlver 2 8,000 16,000 17,600 19,360

Sec. Guurd 1 6,500 6,500 7,150 7,865

Sweeper & Peon 2 5,000 10,000 11,000 12,100

Monthly Totul

65,600

72,160

79,376

Yeurly Totul

787,200

865,920

952,512

Employee Beneflts 5%

39,360

43,296

47,626

Totul Sulurles & Beneflts

826,560

909,216 1,000,138

Purtlculurs

Electrlclty

72,000

79,200

87,120

Telephone

10,800

11,880

13,068

Rent

144,000

144,000

144,000

Llcense

200,000

Depreclutlon

243,990

243,990

243,990

Cuble 12 200

2,400

2,640

2,904

Publlclty 12 1000

12,000

13,200

14,520

Supplles 12 700

8,400

9,240

10,164

Trunsportutlon 12 400

4,800

5,280

5,808

Totul Expenses

1,524,950 1,418,646 1,521,712

Contlngency

7%

106,747

99,305

106,520

Totul Operutlng
Expenses

1,631,697 1,517,951 1,628,231

SALES FORECAST OF 2008
Sales forecast of chaat

SALES FORCAST FOR CHAAT
Max production 36,950 per year
Sales potetional 90%
Expected sales 33255 meals per year
Ending inventory % 1% of sales
Ending inventory 332.55 per year
Total production (see
appendix 1M) 33,587.55 meals per year

Sales forecast of Sev Puri

Sales forecast of Pani Puri

SALES FORCAST FOR PANI PURI
Ending inventory 387 per year
Total production (see 39,087 meals per year
SALES FORCAST FOR SEV PURI
Ending inventory 299.7 per year
Total production (see
Appendix 1N) 30,270 meals per year
appendix 1O)

TOTAL EXPECTED
SALES (see Appendix 1P) 101,925.00 per year

SALES FORECAST 2008

YEARLY SELLING TREND OF CHAAT

MONTH No Of Working Monthly Monthly Sales Monthly % Quaterly Quarterly Quarterly
Days Sales In Unit In Rs(40 per plate) of sales Sales In % Sales In Rs Cost In Rs

January 25 2,250 90,000 6.70
Febuarary 25 2,400 96,000 7.15
March 28 2,350 94,000 7.00 20.84 280,000 26,270.42
April 29 2,700 108,000 8.04
May 30 2,600 104,000 7.74
June 29 3,500 140,000 10.42 26.20 352,000 39,126.15
July 29 3,400 136,000 10.12
August 28 3,300 132,000 9.82
September 28 2,750 110,000 8.19 28.14 378,000 30,741.98
October 28 2,900 116,000 8.63
November 28 2,838 113,520 8.45
December 27 2,600 104,000 7.74 24.82 333,520 29,065.14

TOTAL 334 33,588 1,343,520 100.00 100.00 1,343,520 125,203.68

YEARLY SELLING TREND OF SEV PURI

Days Sales In Unit In Rs(40per plate) of sales Sales In % Sales In Rs Cost In Rs

January 25 1,800 72,000 5.95
Febuarary 25 1,900 76,000 6.28
March 28 2,200 88,000 7.27 19.49 236,000 28,754.00
April 29 2,400 96,000 7.93
May 30 2,450 98,000 8.09
June 29 2,800 112,000 9.25 25.27 306,000 36,596.00
July 29 2,900 116,000 9.58
August 28 3,000 120,000 9.91
September 28 3,000 120,000 9.91 29.40 356,000 39,210.00
October 28 2,600 104,000 8.59
November 28 2,700 108,000 8.92
December 27 2,520 100,800 8.33 25.83 312,800 32,936.40

TOTAL 334 30,270 1,210,800 100.00 100.00 1,210,800 137,496.40

YEARLY SELLING TREND OF PANI PURI


January 25 2,200 66,000 5.63
Febuarary 25 2,400 72,000 6.14
March 28 2,500 75,000 6.40 18.16 213,000 44,047.25
April 29 2,750 82,500 7.04
May 30 3,500 105,000 8.95
June 29 4,000 120,000 10.23 26.22 307,500 70,475.60
July 29 4,117 123,510 10.53
August 28 3,970 119,100 10.16
September 28 3,800 114,000 9.72 30.41 362,610 66,951.82
October 28 3,400 102,000 8.70
November 28 3,200 96,000 8.19
December 27 3,250 97,500 8.31 25.20 295,500 57,261.43

TOTAL 334 39,087 1,172,610 100.00 100.00 1,178,610 238,736.10

YEARLY SELLING TREND OF COLD DRINK
MONTH
No Of
Working Monthly Monthly Sales Monthly Cost Quarterly Quarterly
MONTHLY
SALES
Days Sales In Unit In Rs(15per drink) In Rs(12per drink) Sales in Rs Cost In Rs IN %
January 25 8,000 120,000 96000.00 5.38
Febuarary 25 9,000 135,000 108000.00 6.05
March 28 9,200 138,000 110400.00 393000.00 314,400 6.18
April 29 11,000 165,000 132000.00 7.39
May 30 13,500 202,500 162000.00 9.07
June 29 18,420 276,300 221040.00 643800.00 515,040 12.38
July 29 19,500 292,500 234000.00 13.10
August 28 17,200 258,000 206400.00 11.56
September 28 10,000 150,000 120000.00 700500.00 560,400 6.72
October 28 13,000 195,000 156000.00 8.74
November 28 11,000 165,000 132000.00 7.39
Dcember 27 9,000 135,000 108000.00 495000.00 396,000 6.05

TOTAL 334 148,820 2,232,300 1,785,840.00 2,232,300 1,785,840 100.00

SALES FORECAST 2009


Days Sales In Unit In Rs(40 per plate) of sales Sales In % Sales In Rs Cost In Rs

January 28 2,475 99,000 6.70
Febuarary 27 2,640 105,600 7.15
March 28 2,585 103,400 7.00 20.84 308,000 28,897.46
April 29 2,970 118,800 8.04
May 30 2,860 114,400 7.74
June 29 3,850 154,000 10.42 26.20 387,200 43,038.77
July 29 3,740 149,600 10.12
August 28 3,630 145,200 9.82
September 28 3,025 121,000 8.19 28.13 415,800 33,816.17
October 28 3,190 127,600 8.63
November 28 3,122 124,880 8.45
December 27 2,860 114,400 7.74 24.82 366,880 31,971.65

TOTAL 339 36,947 1,477,880 100.00 100.00 1,477,880 137,724.05



January 28 1,980 79,200 5.95
Febuarary 27 2,090 83,600 6.28
March 28 2,420 96,800 7.27 19.49 259,600 31,629.40
April 29 2,640 105,600 7.93
May 30 2,695 107,800 8.09
June 29 3,080 123,200 9.25 25.27 336,600 40,255.60
July 29 3,190 127,600 9.58
August 28 3,300 132,000 9.91
September 28 3,300 132,000 9.91 29.40 391,600 43,131.00
October 28 2,860 114,400 8.59
November 28 2,970 118,800 8.92
December 27 2,772 110,880 8.33 25.83 344,080 36,230.04

TOTAL 339 33,297 1,331,880 100.00 100.00 1,331,880 151,246.04



January 28 2,420 72,600 5.63
Febuarary 27 2,640 79,200 6.14
March 28 2,750 82,500 6.40 18.16 234,300 48,451.98
April 29 3,025 90,750 7.04
May 30 3,850 115,500 8.95
June 29 4,400 132,000 10.23 26.22 338,250 77,523.16
July 29 4,529 135,870 10.53
August 28 4,367 131,010 10.16
September 28 4,180 125,400 9.72 30.41 398,880 73,647.00
October 28 3,740 112,200 8.70
November 28 3,520 105,600 8.19
December 27 3,575 107,250 8.31 25.20 325,050 62,987.57

TOTAL 339 42,996 1,289,880 100.00 100.00 1,296,480 262,609.70


MONTH No Of Working Monthly Monthly Sales Monthly Cost Quarterly Quarterly
Days Sales In Unit In Rs(15per drink) In Rs(12per drink) Sales in Rs Cost In Rs

January 25 9,000 135,000 108000.00
Febuarary 25 10,000 150,000 120000.00
March 28 10,200 153,000 122400.00 438000.00 350,400
April 29 12,000 180,000 144000.00
May 30 14,500 217,500 174000.00
June 29 19,420 291,300 233040.00 688800.00 551,040
July 29 20,500 307,500 246000.00
August 28 18,200 273,000 218400.00
September 28 11,000 165,000 132000.00 745500.00 596,400
October 28 14,000 210,000 168000.00
November 28 12,000 180,000 144000.00
Dcember 27 10,000 150,000 120000.00 540000.00 432,000

TOTAL 334 160,820 2,412,300 1,929,840.00 2,412,300 1,929,840

SALES FORECAST 2010


MONTH No Of Working Monthly Monthly Sales
Monthly
% Quaterly Quarterly Quarterly
Days Sales In Unit In Rs(50per plate) of sales
Sales In
% Sales In Rs Cost In Rs

January 29 2,970 118,800 6.70
Febuarary 28 3,168 126,720 7.15
March 28 3,102 124,080 7.00 20.84 369,600 34,676.95
April 29 3,564 142,560 8.04
May 30 3,432 137,280 7.74
June 29 4,620 184,800 10.42 26.20 464,640 51,646.52
July 29 4,488 179,520 10.12
August 25 4,356 174,240 9.82
September 28 3,630 145,200 8.19 28.13 498,960 40,579.41
October 29 3,828 153,120 8.63
November 28 3,746 149,856 8.45
December 28 3,432 137,280 7.74 24.82 440,256 38,365.98

TOTAL 340 44,336 1,773,456 100.00 100.00 1,773,456 165,268.86

Sales In

January 29 2,592 103,680 5.95
Febuarary 28 2,736 109,440 6.28
March 28 3,168 126,720 7.27 19.49 339,840 42,512.56
April 29 3,456 138,240 7.93
May 30 3,528 141,120 8.09
June 29 4,032 161,280 9.25 25.27 440,640 54,106.90
July 29 4,176 167,040 9.58
August 25 4,320 172,800 9.91
September 28 4,320 172,800 9.91 29.40 512,640 57,971.68
October 29 3,744 149,760 8.59
November 28 3,888 155,520 8.92
December 28 3,629 145,152 8.33 25.83 450,432 48,696.21

TOTAL 340 43,589 1,743,552 100.00 100.00 1,743,552 203,287.36


MONTH No Of Working Monthly Monthly Sales
Monthly
% Quaterly Quarterly Quarterly
Sales In

January 29 3,168 95,040 5.63
Febuarary 28 3,456 103,680 6.14
March 28 3,600 108,000 6.40 18.16 306,720 64,685.65
April 29 3,960 118,800 7.04
May 30 5,040 151,200 8.95
June 29 5,760 172,800 10.23 26.22 442,800 103,497.04
July 29 5,928 177,840 10.53
August 25 5,717 171,504 10.16
September 28 5,472 164,160 9.72 30.41 522,144 98,322.19
October 29 4,896 146,880 8.70
November 28 4,608 138,240 8.19
December 28 4,680 140,400 8.31 25.20 425,520 84,091.35

TOTAL 340 56,285 1,688,544 100.00 100.00 1,697,184 350,596.24
MONTH
No Of
Working Monthly Monthly Sales Monthly Cost Quarterly Quarterly
Days Sales In Unit In Rs(20per drink)
In Rs(15per
drink) Sales in Rs Cost In Rs

January 25

12,000 240,000 180000.00
Febuarary 25

13,000 260,000 195000.00
March 28

13,200 264,000 198000.00 764000.00

573,000
April 29

15,000 300,000 225000.00
May 30

17,500 350,000 262500.00
June 29

22,420 448,400 336300.00 1098400.00

823,800
July 29

23,500 470,000 352500.00
August 28

21,200 424,000 318000.00
September 28

14,000 280,000 210000.00 1174000.00

880,500
October 28

17,000 340,000 255000.00
November 28

15,000 300,000 225000.00
Dcember 27

13,000 260,000 195000.00 900000.00

675,000

TOTAL 334 196,820 3,936,400 2,952,300.00

3,936,400 2,952,300
Processes

Chat & Sev Puri

Boiling Kg Mins
Chick Peas 11.25 120 mins
Potatoes 2.25 25 mins

Chopping
Onions 3.75 6 mins
Boiled Potatoes 2.25 5 mins
Tomatoes 2.25 5 mins

Cleaning
Chopped Onions 3.75 2 mins
Tomatoes 2.25 2 mins

total time 165 mins

Mixing time 2 mins

Processes
Boiling
Chopping
Cleaning
Mixing
Preparation Time
Total Preparing Time
Chat & Sev Puri 167 mins 150 meals

PANI PURI
Frying Units Mins
Puri 100 15 mins
Assembling
chick Peas 10 mins
chutneys 5 mins

Total Preparation Time
Pani Puri 30 mins 50 meals

OPERATING EXPENSE

OPERATING EXPENSES
Salaries Qty Rate Per Month Yearly Amount PKR
Waiters 4

3,000

12,000
Cashier 1

5,000

5,000
Chef 2

6,000

12,000
Monthly Total

29,000
FIXED ASSETS DATA
YEARLY ALLOCATION
ITEM QUANTITY RATE VALUE LIFE
YEARLY
DEP PROD % AMOUNT ADMIN % AMOUNT
UPS 1

7,000

7,000

3 2,333.33

0.60

1,400.00

0.40

933.33
Stove 1

5,000

5,000

4 1,250.00

0.85

1,062.50

0.15

187.50
Fridge 1

12,000

12,000

5 2,400.00

0.70

1,680.00

0.30

720.00
Tube Lights 5

150

750

2 375.00

0.35

131.25

0.65

243.75
Energy Savers 5

100

500

1 500.00

0.35

175.00

0.65

325.00
Fans 2

1,200

2,400

5 480.00

0.20

96.00

0.80

384.00
Cutlery 1

5,000

5,000

4 1,250.00

0.80

1,000.00

0.20

250.00
Mixer 2

1,500

3,000

3 1,000.00

1.00

1,000.00 - -
Cash Machine 1

10,000

10,000

4 2,500.00 - -

1.00

2,500.00
Water Filter 1

5,000

5,000

3 1,666.67

1.00

1,666.67 - -
Frying Utensils* 2

1,000

2,000

5 400.00

1.00

400.00 - -
Supporting Table For - -
Preparation 3

2,000

6,000

5 1,200.00

0.65

780.00

0.35

420.00
Cash Machine 1

2,000

2,000

4 500.00 - -

1.00

500.00
TOTAL

60,650 15,855

9,391

6,464
per month depreciation

782.62
Total of Prod & Admin

15,855
Yearly Total

348,000
Employee Benefits 5%

17,400
Total Salaries &
Benefits (SEE
APPENDIX 2C)

365,400

ALLOCATED EXPENSES

Electricity 2,100
Telephone 1,200
Gas 600
Water 250
Rent 9,000
Depreciation 6,464
Repair And Maintainance* 500
Supplies* 5,000
Transportation* 10,000
Publicity * (4) 8,000
Misc* 24,000
Total Expenses 432,514
Contengency* 10% 43,251
Total Operating Expenses 475,765
All Figures taken from overhead data, Except *

Total Operating Expenses (Yearly) PKR 475,765.40
Total Operating Expenses (Monthly) PKR 39,647.12
Less: Depreciation + Rent PKR 15,464.00
Op. Exp Payable (30 days credit) PKR 24,183.12
Op. Exp Payable (3 months credit) 72549.35

SEE APPENDIX 2D FOR YEARLY OPERATING EXPENSE
SEE APPENDIX 2E FOR OPERATING EXPENSE CALCULATIONS

Opening Cash
OPENING CASH
deposit 100,000.00
fixed asset 70,650.00
puchses 814,240.57

Profit and loss

CHAAT
cash inhand 286,120.53
Total 1,000,000.00
COGS Meal Units PKR
Op. Stock - -
Purchases (see
appendix 3A) 36,950.00 426,139.56
GAFS 36,950.00 426,139.56
cl. Stock (see
appendix 3B) 3,695.00 42,613.96
COGS(see
appendix 3C) 33,255.00 383,525.60

SEV PURI
COGS Meal Units PKR
Op. Stock - -
Purchases(see
appendix 3A) 33,300.00 446,865.03
GAFS 33,300.00 446,865.03
cl. Stock(see
appendix 3B) 3,330.00 44,686.50
COGS(see
appendix 3C) 29,970.00 402,178.53

PANI PURI
COGS Meal Units PKR
Op. Stock - -
Purchases(see
appendix 3A) 43,000.00 772,634.19
GAFS 43,000.00 772,634.19
cl. Stock(see
appendix 3B) 4,300.00 77,263.42
COGS(see
appendix 3C) 38,700.00 695,370.77

SALES MIX
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
CHAAT 6.70% 7.15% 7.00% 8.04% 7.74% 10.42% 10.12% 9.82% 8.19% 8.63% 8.45% 7.74%
SEV PURI 5.95% 6.28% 7.27% 7.93% 8.09% 9.25% 9.58% 9.91% 9.91% 8.59% 8.92% 8.33%
PANI PURI 5.63% 6.14% 6.40% 7.04% 8.95% 10.23% 10.53% 10.16% 9.72% 8.70% 8.19% 8.31%
COLD DRINKS 5.38% 6.05% 6.18% 7.39% 9.07% 12.38% 13.10% 11.56% 6.72% 8.74% 7.39% 6.04%
COLD DRINK
COGS Drink Units PKR
Op. Stock
Purchases (see appendix
3A) 148819.8 1785837.6
GAFS 148819.8 1785837.6
CL. Stock(see appendix 3B) 14,882 178584
COGS (see appendix 3C) 133,938 1607253.6

Forecasted P&L
for the year 2008
Particulars JAN FEB MARCH APRIL MAY JUNE JUL AUG SEPT OCT NOV Dec
Sales of chat(see
appendix 3D)

90000 96000 94000 108000 104000 140000 136000 132000 110000 116000 113520 104000
sales of Sev puri (see
appendix 3D) 72000 76000 88000 96000 98000 112000 116000 120000 120000 104000 108000 100800
sales of pani puri (see
appendix 3D) 66000 72000 75000 82500 105000 120000 123510 119100 114000 102000 96000 97500
Sales of Cold drink(see
appendix 3D) 120000 135000 138000 165000 202500 276300 292500 285000 150000 195000 165000 135000
Total sales (see
appendix 3E) 348000 379000 395000 451500 509500 648300 668010 629100 4994000 517000 482520 437300
Less:
COGS of chat (see
appendix 3F) 25696.22 27422.08 26846.79 30835.46 29684.88 39963.37 38812.79 37662.21 31410.75 33089.26 32407.91 29684.88
COGS of sevpuri (see
appendix 3F) 23929.62 25256.81 29238.38 32536.24 32536.24 37201.51 38528.70 39855.89 39855.89 34547.14 35874.32 33501.47
COGS of pani puri
(see appendix 3F) 39149.37 42695.77 44503.73 48954.10 62235.68 71136.43 73222.54 70649.67 67590.04 60497.26 56950.87 57785.31
COGS of Cold
Drinks(see appendix
3F) 86470.24 97238.84 99328.27 118776.04 145777.9 198978.00 210550.22 185798.52 108007.44 104473.96 118776.04 97078.12
Total COGS(see
appendix 3F) 175245.46 192613.50 199917.17 231101.84 270234.71 347279.31 361114.26 333966.29 246864.12 268616.62 244009.14 218049.78
Gross Profit(see
appendix 3G) 172754.54 186386.50 195082.83 220398.16 239265.29 301020.69 306895.74 295133.71 247135.88 248383.38 238510.86 219250.22
Less:
Operating Expenses 39647.12 39647.12 39647.12 39647.12 39647.12 39647.12 39647.12 39647.12 39647.12 39647.12 39647.12 39647.12

Depreciation 1552.50 1552.50 1552.50 1552.50 1552.50 1552.50 1552.50 1552.50 1552.50 1552.50 1552.50 1552.50
EBIT 131554.93 145186.88 153883.21 179198.54 198065.67 259821.08 265696.13 25394.09 205936.26 207183.77 197311.24 178050.60
Less: Interest exp 20% 26310.99 29037.38 30776.64 35839.71 39613.13 51964.22 53139.23 50786.82 41187.25 41436.75 39462.25 35610.1
EBT 105243.94 116149.51 123106.57 143358.83 158452.54 207856.86 212556.90 203147.27 164749.01 165747.01 157848.99 142440.48
Less: Tax 40% 42097.58 46459.80 49242.63 57343.53 63381.02 83142.74 85022.76 81258.91 65988.60 66298.81 63139.60 56976.19
Net Income(see
appendix 3H) 63146.37 69689.70 73863.94 86015.30 95071.52 124714.12 127534.14 121888.36 98849.41 99448.21 94709.39 58464.29
CHOPAATI HOUSE
PROFIT AND LOSS STATEMENT

FOR THE YEARS ENDED 2008,2009,2010

Particulars YEAR 2008 % YEAR 2009 % YEAR 2010 %
Sales of chat
PKR
1,343,520.00 22.55%
PKR
1,612,224.00 22.80%
PKR
1,934,688.00 20.78%
sales of Sev puri
PKR
1,210,800.00 20.32%
PKR
1,452,960.00 20.55%
PKR
1,743,552.00 18.72%
sales of pani puri
PKR
1,172,610.00 19.68%
PKR
1,414,332.00 20.00%
PKR
1,697,184.00 18.23%
Sales of Cold drink
PKR
2,232,300.00 37.46%
PKR
2,592,300.00 36.66%
PKR
3,936,400.00 42.27%
Total sales
PKR
5,959,230.00 100.00%
PKR
7,071,816.00 100.00%
PKR
9,311,824.00 100.00%

Less:
Cost of Goods Sold of chat
PKR
383,525.60 6.44%
PKR
518,601.45 7.33%
PKR
711,169.77 7.64%
Cost of Goods Sold of sevpuri
PKR
402,862.23 6.76%
PKR
541,506.63 7.66%
PKR
755,197.65 8.11%
Cost of Goods Sold Pani puri
PKR
695,370.77 11.67%
PKR
853,953.01 12.08%
PKR
1,322,214.27 14.20%
Cost of Goods Sold of Cold
Drinks
PKR
1,607,253.60 26.97%
PKR
1,915,440.00 27.09%
PKR
1,908,240.00 20.49%
Total COGS
PKR
3,089,012.20 51.84%
PKR
3,829,501.09 54.15%
PKR
4,696,821.68 50.44%

Gross Profit
PKR
2,870,217.80 48.16%
PKR
3,242,314.91 45.85%
PKR
4,615,002.32 49.56%

Less:
Operating Expenses PKR 7.98% PKR 7.40% PKR 6.74%

475,765.40 523,341.94 628,010.33
Depreciation
PKR
18,630.00 0.31%
PKR
18,630.00 0.26%
PKR
18,630.00 0.20%
EBIT
PKR
2,375,822.40 39.87%
PKR
2,700,342.97 38.18%
PKR
3,968,361.99 42.62%
Less: Interest exp 20%
PKR
475,164.48 7.97%
PKR
540,068.59 7.64%
PKR
793,672.40 8.52%
EBT
PKR
1,900,657.92 31.89%
PKR
2,160,274.37 30.55%
PKR
3,174,689.59 34.09%
Less: Tax 40%
PKR
760,263.17 12.76%
PKR
864,109.75 12.22%
PKR
1,269,875.84 13.64%
Net Income
PKR
1,140,394.75 19.14% PKR 1,296,164.62 18.33% PKR 1,904,813.76 20.46%

Balance sheet

CHOPAATI HOUSE
BALANCE SHEET
As On 31 Dec 2008
ASSETS LIABILITIES & OWNERS EQUITY

Fixed Assets: Ratios Current Liabilities:
Ratios
%
Cost PKR 70,650 2.62% Salaries Payable PKR 29,000 1.08%
Less: Acc. Dep PKR 18,630 0.69% Overheads Payable PKR 3,142 0.12%
Net Fixed Assets PKR 52,020 1.93% Op. Exp Payable PKR 290,197 10.76%

Current Assets: Total Current Liabilities PKR 322,339 11.95%
Cash PKR 2,181,937 80.92% Long Term Liability PKR 600,000 22.25%
Inventory PKR 343,148 12.73% less:Installments PKR 366,450 13.59%
Security Deposit PKR 100,000 3.71%
Resturant Supplies PKR 19,180 0.71% Net L/T Liability PKR 233,550 8.66%

Owners Equity PKR 1,000,000 37.09%
Net Income PKR 1,140,395 42.30%
Total Current Assets PKR 2,644,264 98.07% Net Owners Equity PKR 2,373,945 88.05%

Total Assets 2,696,284 PKR 100.00% Total Liabilities & Equity PKR 2,696,284 100.00
SEE APPENDIX 5

CHOPAATI HOUSE
BALANCE SHEET
As On 31 Dec 2009

Fixed Assets: Ratios % Current Liabilities:
Ratios
%

Current Assets: Total Current Liabilities PKR 1,126,627 24.82%
Cash PKR 4,088,700 90.06% Long Term Liability PKR 600,000 13.22%
Inventory PKR 399,229 8.79% less:Installments PKR 366,450 8.07%

Resturant Supplies PKR 15,000 0.33% Net L/T Liability PKR 233,550 5.14%
General Reserves PKR 133,607 2.94%
Net Income PKR 1,296,165 28.55%

Total Assets 4,539,949 PKR 100.00% Total Liabilities & Equity PKR 4,539,949 100.00%
CHOPAATI HOUSE
BALANCE SHEET
As On 31 Dec 2010

Fixed Assets: Ratios Current Liabilities: Ratios
Advertising Payable PKR 100,000 1.48%
Maintenance Payable PKR 200,000 2.96%
Current Assets: Total Current Liabilities PKR 1,461,227 21.65%
Cash PKR 6,231,191 92.31%
Inventory PKR 466,806 6.92%
Marketable Securities PKR 25,000 0.37%
Resturant Supplies PKR 23,000 0.34%
General Reserves PKR 183,975 2.73%
Net Income PKR 1,904,814 28.22%

Total Assets 6,750,016 PKR 100.00% Total Liabilities & Equity PKR 6,750,016 100.00%

AMORTIZATION
600000 principal amount
20% per anum
0.016666667 montly interest rate
24 payments
$30,537.48 installment amount
AMORTIZATION TABLE

Int Period Payment Date Mthly pmt Int Exp Principal Principal
Repayment Remaining
600000
1 1/1/2008 $30,537.48 10000 $20,537.48 $579,462.52
2 1/31/2008 $30,537.48 $9,657.71 $20,879.77 $558,582.75
3 3/1/2008 $30,537.48 $9,309.71 $21,227.77 $537,354.98
4 3/31/2008 $30,537.48 $8,955.92 $21,581.57 $515,773.41
5 4/30/2008 $30,537.48 $8,596.22 $21,941.26 $493,832.15
6 5/30/2008 $30,537.48 $8,230.54 $22,306.95 $471,525.21
7 6/29/2008 $30,537.48 $7,858.75 $22,678.73 $448,846.48
8 7/29/2008 $30,537.48 $7,480.77 $23,056.71 $425,789.77
9 8/28/2008 $30,537.48 $7,096.50 $23,440.99 $402,348.79
10 9/27/2008 $30,537.48 $6,705.81 $23,831.67 $378,517.12
11 10/27/2008 $30,537.48 $6,308.62 $24,228.86 $354,288.26
12 11/26/2008 $30,537.48 $5,904.80 $24,632.68 $329,655.58
13 12/26/2008 $30,537.48 $5,494.26 $25,043.22 $304,612.36
14 1/25/2009 $30,537.48 $5,076.87 $25,460.61 $279,151.75
15 2/24/2009 $30,537.48 $4,652.53 $25,884.95 $253,266.79
16 3/26/2009 $30,537.48 $4,221.11 $26,316.37 $226,950.43
17 4/25/2009 $30,537.48 $3,782.51 $26,754.97 $200,195.45
18 5/25/2009 $30,537.48 $3,336.59 $27,200.89 $172,994.56
19 6/24/2009 $30,537.48 $2,883.24 $27,654.24 $145,340.32
20 7/24/2009 $30,537.48 $2,422.34 $28,115.14 $117,225.18
21 8/23/2009 $30,537.48 $1,953.75 $28,583.73 $88,641.45
22 9/22/2009 $30,537.48 $1,477.36 $29,060.12 $59,581.33
23 10/22/2009 $30,537.48 $993.02 $29,544.46 $30,036.87
24 11/21/2009 $30,537.48 $500.61 $30,036.87 $0.00

SEE APPENDIX 6

RATIOS

CHOPAATI HOUSE
RATIO ANALYSIS
2008 2009 2010
Gross Profit Margin 48.2% 45.8% 49.6%
Net Profit Margin 19.1% 18.3% 20.5%
Current Ratio 8.20 3.98 4.58
Interest Coverage Ratio 5.00 5.00 5.00
Earning Power 88% 59% 47%
Return on Equity assets 42% 29% 28%
total assets turnover 2.21 1.56 1.38
total current assets 98.07% 98.85% 99.23%
Quick Ratio 7.14 3.63 4.26
Working Capital Ratio 0.39 0.48 0.56
Cash Ratio 0.81 0.90 0.92
Inventory Turnover Ratio 9.00 9.59 10.06
Day Sales Inventory 40.55 38.05 36.28

See appendix 7

SENSITIVITY ANALYSIS

Yearly
Total Fixed Cost 582630
Total Variable Cost 3325412.20

SENSITIVITY ANALYSIS
FOR THE YEAR 2008
Base Case Case A Case B
Particulars PKR PKR PKR

Sales 5959230 5959230 5959230
Less: Variable Cost 3325412.20 4325412.20 3325412.20
Fixed Cost 582630 582630 482630
Depreciation 18630 18630 18630
Profit Before Tax 2032557.80 1032557.80 2132557.80
Less: Tax(40%) 813023.12 413023.12 853023.1212
Profit After Tax 1219534.68 619534.68 1279534.68
Add: Depreciation 18630 18630 18630
Operating Cashflow 1238164.68 638164.68 1298164.68
D.C (10%) 0.9091 0.9091 0.9091
DCF 1125615.51 580155.51 1180161.512

Assumed in Case A Variable Cost increases by 1000000
Assumed in Case B Fixed Cost decreases by 100000
SCENARIO ANALYSIS

SCENARIO ANALYSIS
FOR THE YEAR 2008
Base Case Best Worst
Particulars PKR PKR PKR

Sales 5959230 8437943.738 3872076.262
Less: Variable Cost 3325412.20 2903220.74 3551823.65
Fixed Cost 582630 550000 615260
Depreciation 18630 18630 18630
Profit Before Tax 2032557.80 4966093.00 -313637.39
Less: Tax(40%) 813023.12 1986437.20 -125454.9563
Profit After Tax 1219534.68 2979655.80 -188182.43
Add: Depreciation 18630 18630 18630
Operating Cashflow 1238164.68 2998285.80 -169552.43
D.C (10%) 0.9091 0.9091 0.9091
DCF 1125615.51 2725741.62 -154140.1181

PRICE BASE BEST WORST
Selling Price 24 30 18
Variable Cost 13 10 16
Fixed Cost 582630 550000 615260
Quantity 251,764.25 284,394.25 219,134.25
ASSUMPTIONS
In best case selling price has increased by Rs. 6
variable cost decreased by Rs. 3
Fixed cost increased by Rs. 32630
Quantity increased by 32630units

In worst case selling price has decreased by Rs. 6
variable cost increased by Rs. 3
Fixed cost decreased by Rs. 32630
Quantity decreased by 32630units
NET PRESENT VALUE

CALCULATION OF NPV:

DF 10% DCF
0

1,000,000.00 1.0000 1000000.00
1

2,181,936.54 0.9091

1,983,598.51
2

4,088,699.78 0.8264

3,378,901.50
3

6,231,190.94 0.7531

4,692,709.90
DCF

10,055,209.91

NPV= DCF-II
NPV=

9,055,209.91

PROFITIBILITY INDEX:

CALCULATION OF PROFITABLILITY INDEX

PI= DCF/II
PI= 10.06

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