FINANCIAL MANAGEMENT
A FEASIBILITY REPORT ON
I MPERI ALBAKERS
IMPERIAL BAKERS
ACKNOWLEDGEMENT In the name of Allah, the most merciful & beneficial, we are very thankful to Almighty Allah, Allah, who strengthened us to complete this report.
We acknowledge our sincere gratitude to our subject teacher, without his kind guidance, support & encouragement; we may not be able to complete this report.
We hope that any short comings, errors & mistakes are purely accidental and would be pardoned.
FEASIBILITY REPORT
Page | 2
IMPERIAL BAKERS
ACKNOWLEDGEMENT In the name of Allah, the most merciful & beneficial, we are very thankful to Almighty Allah, Allah, who strengthened us to complete this report.
We acknowledge our sincere gratitude to our subject teacher, without his kind guidance, support & encouragement; we may not be able to complete this report.
We hope that any short comings, errors & mistakes are purely accidental and would be pardoned.
FEASIBILITY REPORT
Page | 2
IMPERIAL BAKERS
S.No
PARTICUALAR
PAGE NUMBER
1.
EXECUTIVE SUMMARY
5
2.
INTRODUCTION TO FESIBILITY
6
3.
INTRODUCTION TO BAKERY
8
.
PRO!ECT AT A GLANCE
11
5.
SWOT ANALYSIS
13
.
FINANCIAL FEASIBILTY
16
5.
CONCLUSION
38
6.
REFERENCES
38
TABLE OF O F CONTENTS CONT ENTS
FEASIBILITY REPORT
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IMPERIAL BAKERS
FEASIBILITY REPORT
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IMPERIAL BAKERS
EXECUTIVE SUMMARY easibility reports address things like where and how the business will operate. !hey provide in"depth details about the business to determine if and how it can succeed, and serve as a valuable tool for developing a winning business plans.
!his project is a feasibility report for establishing a bakery. !he name of our partnership firm has been decided as ‘Imperial Bakery’. We will enter into the business with breads, buns, pi##a, toasts, cream rolls & tea cakes, as our chief products. !his project studies and analyses various parameters that decide the establishment of a bakery and whether the venture shall be feasible or not. !he project has been divided into four major branches of feasibility study, namely, technical, human resource, marketing and financial. $ur team has made an all out effort to present a comprehensive feasibility report and depict the feasibility of the project.
FEASIBILITY REPORT
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IMPERIAL BAKERS
INTRODUCTION TO FEASIBILITY
FEASIBILITY REPORT
Page | 6
IMPERIAL BAKERS
DEFINITION OF FEASIBILITY A feasibility report looks at the viability of an idea with an emphasis on identifying potential problems and attempts to answer one main %uestion Will the idea work and should you proceed with it' (efore you begin writing your business plan you need to identify how, where, and to whom you intend to sell a service or product. )ou also need to assess your competition and figure out how much money you need to start your business and keep it running until it is established. easibility studies address things like where and how the business will operate. !hey provide in"depth details about the business to determine if and how it can succeed, and serve as a valuable tool for developing a winning business plan.
W"# A$% F%&'()(*(+# R%,o$+' 'o I-,o$+&+/ easibility reports contain comprehensive, detailed information about your business structure, your products and services, the market and help you to know the logistics of how you will actually deliver a product or service, the resources you need to make the business run efficiently, as well as other information about the business.
T"% Co-,o%+' o0 & F%&'()(*(+# R%,o$+ •
•
•
•
•
•
Description of the Business: !he product or services to be offered and how they will be delivered. Market Feasibility: Includes a description of the industry, current market, anticipated future market potential, competition, sales projections, potential buyers, etc. Technical Feasibility: *etails how you will deliver a product or service +i.e., materials, labour, transportation, where your business will be located, technology needed, etc.. Financial Feasibility: -rojects how much start"up capital is needed, sources of capital, returns on investment, etc. Organizational Feasibility: *efines the legal and corporate structure of the business +may also include professional background information about the founders and what skills they can contribute to the business. onclusions: *iscusses how the business can succeed. (e honest in your
FEASIBILITY REPORT
Page | 7
IMPERIAL BAKERS assessment because investors wont just look at your conclusions they will also look at the data and will %uestion your conclusions if they are unrealistic.
INTRODUCTION TO BAKERY
FEASIBILITY REPORT
Page | 8
IMPERIAL BAKERS
ISTORY Baking is the techni%ue of prolonged cooking of food by dry heat acting by convection, normally in an oven, but also in hot ashes, or on hot stones. It is primarily used for the preparation of bread, cakes, pastries, pies, cookies, biscuits and crackers. /uch items are sometimes referred to as 0baked goods,0 and are sold at a bakery. A person who prepares baked goods as a profession is called a baker . It is also used for the preparation of baked potatoes, baked apples, baked beans, and various other foods. 1any commercial ovens are provided with two heating elements one for baking, using convection and conduction to heat the food, and one for broiling or grilling, heating mainly by radiation. !he baking process does not re%uire any fat to be used to cook in an oven. /ome makers of snacks such as potato chips or crisps have produced baked versions of their snack items as an alternative to the usual cooking method of deep"frying in an attempt to reduce the calorie or fat content of their snack products. In ancient history, the first evidence of baking occurred when humans took wild grass grains, soaked them in water, and mi2ed everything together, mashing it into a kind of broth"like paste. !he paste was cooked by pouring it onto a flat, hot rock, resulting in a bread"like substance. 3ater, this paste was roasted on hot embers, which made bread"making easier, as it could now be made anytime fire was created.
(aker putting bread into an oven with a peel, 4567
FEASIBILITY REPORT
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IMPERIAL BAKERS
(aking flourished in the 8oman 9mpire. In about : (<, the pastry cook became an occupation for 8omans. !his became a respected profession because pastries were considered decadent, and 8omans loved festivity and celebration. !hus, pastries were often cooked especially for large ban%uets, and any pastry cook who could invent new types of tasty treats was highly pri#ed. Around 4 A*, there were more than three hundred pastry chefs in 8ome, and wrote about how they created all sorts of diverse foods, and flourished because of those foods.. A great selection of bakery products like breads and pastries, with many different variations, different ingredients, and varied patterns, were often found at ban%uets and dining halls. !he 8omans baked bread in an oven with its own chimney, and had mills to grind grain into flour. 9ventually, because of 8ome, the art of baking became known throughout 9urope, and eventually spread to the eastern parts of Asia. (akers often baked goods at home and then sold them in the streets. In 3ondon, pastry chefs sold their goods from handcarts. !his developed into a system of delivery of baked goods to households, and demand increased greatly as a result. In -aris, the first open"air caf= of baked goods was developed, and baking became an established art throughout the entire world, thus leading to the successful birth of bakeries and baked products.
FEASIBILITY REPORT
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IMPERIAL BAKERS
PROJECT AT A GLANCE
FEASIBILITY REPORT
Page | 11
IMPERIAL BAKERS
!ame
Imperial (akers
"ro#ucts
(reads, (uns, -i##a, !oasts,
$tatus
1edium /cale
%##ress
1ain >niversity 8oad, ?ulshan"e"I%bal, @arachi.
Type of firm
-artnership irm
Date of incorporation
4st April, 4:
ost of pro&ect
8s. 6,47,47
$ource of finance
-artners capital " 8s.:, BC,55 (ank 3oan " 8s.:4, D,D
Mission statement
:
E$ur mission is to provide %uality products at lowest pricesF .
'ision
:
E!o be the leader of %uality bakery products provider in the region. !his will be achieved by the dedication of each employee in conjunction with supportive participation from management at all levels.F
FEASIBILITY REPORT
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IMPERIAL BAKERS
SWOT ANALYSIS
S+$%.2+"'
O,,o$+3.(+(%'
T"$%&+'
W%&4.%''%'
FEASIBILITY REPORT
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IMPERIAL BAKERS
SWOT ANALYSIS A scan of the internal and e2ternal environment is an important part of the strategic planning process. 9nvironmental factors internal to the firm usually can be classified as strengths +$ or weaknesses +(, and those e2ternal to the firm can be classified as opportunities +O or threats +T. /uch an analysis of the strategic environment is referred to as a $(OT analysis. !he /W$! analysis provides information that is helpful in matching the firmGs resources and capabilities to the competitive environment in which it operates. As such, it is instrumental in strategy formulation and selection. !he /W$! Analysis of our firm is
S+$%+"' • •
•
•
•
!he prices of our products are very reasonable and less than our competitors. Hew and different varieties of products have been introduced which shall give us the benefit of product differentiation. $ur sales are through tie"ups with grocery stores and supermarkets across @arachi. !his gives us a wide consumer base and a chance to serve different levels of customers. !he firm also gives a little more commission to its distributors to encourage dealership. !he labor re%uired does not need any specific %ualification & skill and hence can be made easily available.
W%&4%''%' •
•
•
(akery products are perishable items hence need to be sold as soon as possible to gain ma2imum benefit. !he customers also prefer fresh products. (ut the far location of the factory can increase the time between baking and actual selling. $ur bakery has introduced few bakery items from the possible product lines. We are not making cakes, pastries, chocolates and other various products. !his limited menu can be seen as a weakness. We are not introducing our own outlets but are selling through tie"ups across the city. !his delays our brand establishment time.
FEASIBILITY REPORT
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IMPERIAL BAKERS
FEASIBILITY REPORT
Page | 15
IMPERIAL BAKERS
O,,o$+(+(%' •
•
•
92pansion of the product line in the future with the introduction of biscuits and cakes and pastries. /cope for e2pansion with the establishment of our own outlets and bakery caf=s ?rowing concern for health and multigrain food products shall become a reason for increase of our sales of food items such as brown breads, tomato" spinach bread and white"coriander bread.
T"$%&+' •
/evere competition in the industry with well"established players like >nited @ing,
FEASIBILITY REPORT
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IMPERIAL BAKERS
FINANCIAL FEASIBILITY
FEASIBILITY REPORT
Page | 17
IMPERIAL BAKERS !ote: ) ost of *an# !o+
"articular
%mount
4.
(asic
.
4
:.
/tamp duty J 4
4B7 4B7 4B7
TOT%*
),-./00
!ote: . ost of onstruction !o 4. . :. B. 5. 6. C. 7. D.
"articular -roduction area /torage area Administrative office Water room & wash room inished goods storage 3oading *ock -arking space /ecurity cabin $pen land TOT%*
%rea1in s2+ feet3 474: : :C5 BB : 467 45 56 4DB 4,00
%mount 4:4:D5 :5 :4C5 4CB6 :C5 4DC 55 CB 46 .4-0000
!ote: 4 Machinery !o+
"articular
4 : B 5 6 C 7 D 4 44 4
*eck oven *ough mi2er *ough molder /ugar grinder -acking machine !oast slicerKbread slicer ree#er 1i2er 8olling racks !rays /tainless steel utensilsKtoolsKe%uipment knives TOT%*
FEASIBILITY REPORT
5uantity 4 : 4 4 6 4 "
"rice per unit 6B B65 B:5 :5 BC65 :7 46B :6 C5 "
%mount 6B 4:D5 7BC :5 D5: C6 :7 :6 B5 7:B /67400
Page | 18
IMPERIAL BAKERS !ote: - ost of Furniture !o+
"articular
5uantity
4 : B 5 6 C 7 D 4 44 4 4:
/ofa /et 8evolved
B 7 : 4 4 4 B 4 5 4 B
"rice per unit 4B 45 D5 : 7 44: D 4 5 B 4 45
%mount 7 6 C6 D 7 44: D B 5 4 6 5 )..)00
!ote: 8 ost Of e2uipments !o+
"articular
5uantity
4 : B
: : 4
"rice per %mount unit :D C4C 6 4 5 45 5 C5 4,.700
!ote: , ost Of 'ehicle !o+
"articular
4
!empo
5uantity
"rice per unit BC
%mount BDB
TOT%*
-7-000
!ote: 6 "reliminary 9p+ !o+ 4 :.
"articular 3icence ees 8egistration ees +4 -artnership deed TOT%*
FEASIBILITY REPORT
%mt+ :5 4B7 C 8,/00 Page | 19
IMPERIAL BAKERS
!ote: / "re;operati
"articular 1arket /urvey 92p.
%mount 5 B7 475 D 5 B
TOT%*
).0800
WORKING CAPITAL !o+
"articular
%mount
4.
urrent %ssets
A.
8aw material re%uirement
(.
W.I.- re%uirement
<.
inished ?oods re%uirement
57C
*.
*ebtors 8e%uirement
5B6C5
9.
4B77D
Total urrent %ssets
6.6667
:C """"""
.
urrent *iabilities
A.
56C56B
(.
*eferred Wages
Total urrent *iabilities TOT%* (O=>I!? %"IT%*
FEASIBILITY REPORT
8/78,)4/.)8
Page | 20
IMPERIAL BAKERS
A STATEMENT SOWING COST OF PRO!ECT $=+ !O
"%=TI@*%=
4.
3and
46B7
.
(uilding
:B
:.
1achinery
7CD:
B.
urniture & i2tures
44
5.
9%uipments
:6D
6.
Lehicles
BDB
C.
-reliminary e2penses
567
7.
-re"operative 92penses
45
D.
Working
4:745
4.
8eserves for contingency TOT%* O$T
%MO@!T 1in =s+3
64565 ,.)/)/0
MEANS OF FINANCE H$. 4. . :.
-A8!I<>3A8 -artners capital +5 /ecured loans +5 8eserve and surplus TOT%*
FEASIBILITY REPORT
A1$>H! :BC55 :4DD 64565 ,.)/)/0
Page | 21
IMPERIAL BAKERS
SALARY "articular s actory manager inance manager Accountant
!o+
Monthl )$T y salary A9%=
.!D A9%=
4=D A9%=
-T A9%=
8T A9%=
456
456
46:7
46:7
456
456
46:7
46:7
4
4
4
46
456
456
46:7
46:7
7
456 456 """"""""" " 456 D6
D6
D6
47
47
B5
5B
5B
5B
5B
5B
:5
4 C :6
4
B
B
5B6
C :6
47 :6
4446 :C7
4446 :C7
:6 76.00 0
:6 )07.00 0
:6 )44/00 0
:C7 )4608. 0
:C7 )80.8. 0
4
4:
4
4:
4
4
1arketing 4 manager -roduction 4 supervisor 1aster 4 baker >tility Laries workers *rivers /ecurity 4 guard -eon 4 Total )4
4:
: : : ,-000
BONUS "articulars actory manager inancial manager 1arketing manager Accountant -roduction supervisor 1aster baker
4
)$T A9%= 4:
4
4:
4:
4:
4:65
4:65
4
4:
4:
4:
4:65
4:65
4 4
"""""" 7
4 7
4 7
4 7B
46 7B
4
B5
B5
B5
B5
B5
!o
FEASIBILITY REPORT
.!D 4=D A9%= A9%= 4: 4:
-T A9%= 4:65
8T A9%= 4:65
Page | 22
IMPERIAL BAKERS
DEPRECIATION "%=TI@*%=$
)$T A9%=
M%I!9=I9$ )8C $p balance 7CD: 3ess depreciation 4:47D5
.!D A9%=
4=D A9%=
-T A9%=
8T A9%=
CBCB5 44444 6:5DB
6:5DB D5DB 5B
5B 74 B5D
B5D 6775 :D45
46
47D5B
4C576
45:5CB
3ess depreciation
:B 46
46 47D5B
47D5B 4C576
4C576 45:5CB
45:5C 4:74CBC
44 44 4D7D
4D7D 4D7D D7D4
D7D4 D7D 7D44
7D44 7D4 744
744 744 CDD
BDB 4DC6 D6B
D6B 44756 4CC7B
4CC7B C44:6 46CB
46CB B67 6B
6B 56D :7B4:
$p balance 3ess depreciation
C4C B: 767 ,)/6.8
767 4C7 44BC -,7-,/
44BC 677: B57D 46.6-4
B57D C5: 47:6 4087..
47:6 444 C:5 .86077
Add !empo 3ess depreciation
"""""""" """""""" """""""" ,)/6.8
"""""""" """""""" """""""" -,7-,/
BC D77 4B7 -6)8-4
4B7 5D7 77D 4,8.0.
77D :5567 5::5 .7.,,6
FEASIBILITY REPORT
Page | 23
IMPERIAL BAKERS
FACTORY OVEREAD EXPENSES "%=TI@*%=$
)$T A9%=
.!D A9%= 4=D A9%= -T A9%=
8T A9%=
$alary actory manager
456
456
456
46:7
46:7
-roduction supervisor
D6
D6
D6
47
47
-eon
:6
:6
:6
:C7
:C7
/ecurity guard
:6
:6
:6
:C7
:C7
4:
4:
4:
4:65
4:65
/upervisor
7
7
7
7B
7B
-eon
:
:
:
:45
:45
/ecurity guard
:
:
:
:45
:45
1achinery
4:47D5
44444
D5DB
74
6775
(uilding
:B
46
47D5B
4C576
45:5C
4:4D
4444
D5D
74
6775
B67
B4
:CD4
:B4
:C4
,4,
56DB
75B45
::5D7
:56D
47
54B4
5D7B
6D7:
75CB4
(uilding
:B
:B
:B
:B
:B
1achinery
7CD
7CD
7CD
7CD
7CD
))-,/78
))4)077
))6),/4
))0)7)7
)0-)./-
Bonus actory manager
Depreciation
Insurance 1achinery (uilding 9lectricity charges -ower and fuel =epairs an# maintenance
TOT%*
FEASIBILITY REPORT
Page | 24
IMPERIAL BAKERS
ADMINISTRATIVE OVEREADS "%=TI@*%=$ $alary Accountant inance manager Bonus Accountant inance manager Depreciation
)$T A9%=
.!D A9%= 4=D A9%= -T A9%=
8T A9%=
456
4 456
4 456
4 46:7
46 46:7
4:
4 4:
4 4:
4 4:65
46 4:65
B: 44 6 5 D 4-8.40
4C7 4D7D 4CC5 655 D5B6 --,0-4
677: D7D 45:4 675B D:567 -44808
C5: 7D4 467 CB5 DB7C4 ---600
444 744 4565 C5 D576 ---)7-
SELLING DISTRIBUTION OVEREAD "articulars $alary 1arketing manager *river Bonus 1arketing 1anager *river Depreciation of vehicle uel & maintenance of vehicle Advertisement
)$T A9%=
.!D A9%=
4=D A9%=
-T A9%=
8T A9%=
456
456
456
46:7
46:7
C
C
47
4446
4446
4:
4:
4:
4:65
4:65
6 4DC6
6 44756
D 46DD:6
D: 44D6
D: 644CC
455
4657
4657BC
4C7B5
4756
475 4C57
5 545
5 667
5 574
C 6DC5
4CD
4545
:B
46DC
4:B74
/))470
6,6008
/78-76
/6647.
/80/6/
FEASIBILITY REPORT
Page | 25
IMPERIAL BAKERS
FEASIBILITY REPORT
Page | 26
IMPERIAL BAKERS
REPAYMENT OF LOAN Aear
"rinciple =emaining
Installment "ai#
Interest
Total %mt+ "ai#
Balance of "rinciple
4st )ear
:4DD
64747
:B
D6:747
B7CC
nd )ear :rd )ear
B7CC 4765B5B
64747 64747
C:6 5
7D5B47 7C47
4765B5B 4B:6:6
Bth )ear
4B:6:6
64747
4:67
C57647
64747
5th )ear
64747
64747
67B
6D47
TOT%*
4)07070
)0.,000
-)48070
M
STATEMENT OF INTEREST ON PARTNERS CAPITAL "articular $pening balance of capital
)st Aear
.n# Aear
4r# Aear
-th Aear
8th Aear
:BC55
:4:67C
:574D74
B6:6:
5C4
4775
4774CC
4BD4D
B:CD6
:46::
77C6
BB56DB
B747
D6:D57
4D4C6
44)7)47
4660)8/
-.6/)/.
8.6)0)6
,-)7740
3ess Interest
+4775
+4774CC
+4BD4D
+B:CD6
+:46::
TOT%*
4)4,./6
48/)7/)
-0,4.,4
80.6..)
,))/.76
Add Interest Add -rofit
FEASIBILITY REPORT
Page | 27
IMPERIAL BAKERS
COST SEET "articular $pening /tock of 8.1. Add" -urchases 3ess"
)st Aear
.n# Aear
4r# Aear
-th Aear
8th Aear
:C
:5
:7D5
B45
B5B54
5DC4C
575:B
666B:B
6D6B5:
:C
:5
:7D5
B45
B57D
-8)0.-0
8.7..-0
8/-7.70
,,,))-0
,7,0670
6B -67,.-0
6B 886/.-0
BCB :D5 ,4,.670
BCB :D5 6)6-,-0
6 B55 6,0,.70
44B67D5
44:4DD
44C467:
444D4D
4B47B
86..)48
,607447
684--64
/.6,887
/,-686-
:B5:
BB6Bss:
B::55
BBBC
BBB4DB
,0,64,8
6)884/.
67,676/
/6.).87
707)6,/
"
57C
C75
DD5
:5
57C ,0-)-78
C75 6).684.
DD5 674/0./
:5 /,70687
:D5 708//)/
744:D
C6C5
7D5BDC
7CC:D
757C7
,/8.//8 D7445 66,)000
6/7-846 445D74: 708-480
//448.8 44CDC5 )000-800
78,/)8) 47:7D ))47).-0
7707,7, 4DDB6CB ))70-460
FEASIBILITY REPORT
Page | 28
IMPERIAL BAKERS
TRADING AND PROFIT LOSS A7C "articulars I!OM9:;
)st Aear
.n# Aear
4r# Aear
-th Aear
8th Aear
C44B5 6B6C5
74C5 756
7DC76 45D
44:7B 457B
4B4D:C 4B75
CC64
D5B:5
4B5
44:D4B
44DB:C
57C
C75
DD5
:5
:D5
"""""" CC767C
57C D56::
C75 466
DD5 44:D4CD
:5 44D67
B54B
5DB
57BDD
66644B
6D6CD
76 C74
76 77:77
54:5 7767BD
54:5 75:::
6B55 747DC
D
B4C7B6
B46C:
B::B6
B:57
64:CD
6B7BB5
C5564
CC5B:
C7DC4
:5B6
:5B6
:5B6
:5B6
:5B6
4775
4774CC
4BD4D
B:CD6
:46::
,,774-.
6,6,88,
/,-.4))
78).608
77/6064
)0/68./
)46766-
)4,-./7
)/670/8
)7)76-6
647C5 -,//04
B6DB67 7)040,
BC45B: /7.6-,
:65 )8)4//4
D66C ),.60/0
:B ).,/04
C:6 ,4,60,
5 ,/68-,
4:67 )4660/4
67B )88/,/0
:7B4 //6,.
4D44 --8,7-
66B -/)./.
B4:45 7,478/
B6C6B )07)06,
FEASIBILITY REPORT
Page | 29
IMPERIAL BAKERS
BALANCE SEET "articulars
Aear )
Aear .
Aear 4
Aear -
Aear 8
$O@=9 OF F@!D$ $wners unds 8eserve & /urplus (ank 3oan TOT%* $O@=9 OF F@!D
:4:67C 64565
:574D74 64565
B6:6: 64565
5C4 64565
6447DC 64565
B7CC 8,/8).-
4765B5B 8807000
4B:6:6 84,/-,-
64747 86)0,0-
,)67/,.
%""*I%TIO! OF F@!D$ Fie# %ssets *an# Buil#ing 3ess *epreciation Machinery 3ess *epreciation Furniture 3ess *epreciation 'ehicle 3ess *epreciation omputer 3ess *epreciation
46B7 :B :B
46B7 46 46
46B7 47D5B 47D5B
46B7 4C576 4C576
46B7 45:5CB 45:5C
.)0,000 7CD: 4:47D5
)/78-00 CBCB5 44444
)608/,0 6:5DB D5DB
)848.65B 74
)4/)6-6 B5D 6775
6-6-08 44 44
,48.74D7D 4D7D
8-0000 D7D4 D7D
-87000 7D44 7D4
470)80 744 744
)07/70 BDB 4DC6
7/70) D6B 44756
/70)) BB7B 46DD:C
/0))0 5BD: 44D6
6.077 45DB4 644CC
.7,-00 C4C B:
)66/-0 767 4C7
.8-704 44BC 677:
)8.7-) B57D C5:
7)6,47:6 44
./,/0 D4
))-6. D4
-8/7 D4
)/4, D4
64D4
-),4),)
4/60-7-
B45 :5
B57D :D5
$ther e%uipment TOT%* FI9D 8...468 -68.706 -8./4,4 %$$9T$ @==9!T %$$9T$E *O%!$ %!D %D'%!9 In
FEASIBILITY REPORT
Page | 30
IMPERIAL BAKERS /undry *ebtors
5B6C5
:C57:
TOT%* @==9!T %$$9T$
7)0-64
754:
D65B
45:6
445B6
B467 )4.4/84
55B454 )8-787)
47744: .4/,).4
7:D7 4.//.0/
*9$$ : @==9!T *I%BI*ITI9$ %!D "=O'I$IO!
56C56B
654B
C57B4
754B
D567B
*eferred Wages
TOT%* @==9!T *I%BI*ITA !9T @==9!T %$$9T$
8/78,-
,6-)-0
6/0-)0
/6-)-0
76//-0
4.0707
,-76)4
6,7)/)
)8))7/4
.4074,/
1iscellaneous 92penditure +!o the e2tent not written off TOT%* %""*I%TIO! OF F@!D$
4B47B
46:7
CD
:5B6
8,/8).-
8807000
84,/-,-
86)0,0-
,)67/,.
FEASIBILITY REPORT
Page | 31
IMPERIAL BAKERS
CAS FLOW STATEMENT )st year .n# year 4r# year -th year %$ F*O( F=OM O"9=%TI!? %TI'ITI9$ -A! 77C6 BB56DB B747 D6:D57 Interest 5B75 B64CCC B44D :75D6 !a2 -rovision :7B4 4D44 66B B4:45 *epreciation 647C5 B6DB67 BC45B: :65 -reliminary :5B6 :5B6 :5B6 :5B6 92penses %!?9$ I! +4::6 +5CC B: +77B (O=>I!? %"IT%* !a2 -aid +:7B4 +4D44 +66B +B4:45 !et ash Flo ).8--64 ))/,,7. )-4.-06 )64,46, From Operating %cti
FEASIBILITY REPORT
8th year 4D4C6 :C:: B6C6B D66C :5B6 +45D
+B6C6B )6/6,-,
"""""" """""" ;;;;;;
"""""" """""" +64747 +67B +:46:: 177)/8)3
678678 47744: .0/470/
Page | 32
IMPERIAL BAKERS
FEASIBILITY REPORT
Page | 33
IMPERIAL BAKERS
RATIO ANALYSIS "%=TI@*%=$ "=OFIT%BI*ITA =%TIO Het profit ratio + +Het profitKsales4 $perating ratio + +-(I!KsalesO4
FEASIBILITY REPORT
)st year
.n# year
4r# year
-th year
8th year
4.4B
B.D
B.74
7.B6
D.4C
6.B
4.5
7.D
4:.D
4:.6C
D.4
4.44
D.5
44.6C
44.6
4.BD
4.D4
.4
.CB
:.7
4.C
4.BD
4.65
4.CB
4.66
5.4B
6.
6C.7C
CC.C
76.::
4.:C
:.:
B.:5
44.C
:.CD
4.5B
4.D6
4.DD
.C:
:.:6
Page | 34
IMPERIAL BAKERS
TREND OF RATIOS 1.
NET PROFIT RATIO N%+ P$o+ R&+(o
P%$9%+&%
Y%&$
Interpretation: !he firm has continuously made profit for five years. It shows the firms capability to increases revenue from its business.
2.OPERATING RATIO
O,%$&+( R&+(o
P%$9%+&%
Y%&$
Interpretation: $perating profit of the firm is continously increasing over the five years. It does not increase with more margins because of increses in revenues e2penses in that years, but it also does not decrease which shows continuous increment in revenue.
FEASIBILITY REPORT
Page | 35
IMPERIAL BAKERS
3. CAS PROFIT RATIO
C&'" P$o+ R&+(o P%$9%+&%
Y%&$
Interpretation:
.
FIXED ASSETS TURNOVER RATIO F(:%; A''%+' T$o<%$ R&+(o
P%$9%+&%
Y%&$
Interpretation: As the revenue is increasing year by year and the depreciation is written off the value of fi2ed assets reduces and thus there is an increase in the fi2ed asset turnover ratio.
FEASIBILITY REPORT
Page | 36
IMPERIAL BAKERS
5.
TOTAL ASSETS TURNOVER RATIO To+&* A''%+' T$o<%$ R&+(o
P%$9%+&%
Y%&$
Interpretation: !he total asset turnover ratio of the firm continously increses in 5 years. It shows that firm has optimum uses of its assets to generate its revenue.
6.
PROPRIETORS RATIO P$o,$(%+o$=' R&+(o
P%$9%+&%
Y%&$
Interpretation: -roprietor ratio indicate that the share of owners in the firm aganist the other liabilites. !he -roprietor ratio of the firm is continously increasing in five years and in the 5th year its is nearly 76.:: and its e%ual to half of the balance sheet total and its gives encourage the firm to take more risk.
FEASIBILITY REPORT
Page | 37
IMPERIAL BAKERS
>.
INTEREST COVERAGE RATIO
Interest o
P%$9%+&%
Y%&$
Interpretation: !he interest coverage ratio indicates capacity of firm to pay interest on debt out of its profit. !he above chart shows that there is continuous increase in this ratio through out 5 years because of increase in revenue. It is ma2imum :.CD in the 5th year.
8.
CURRENT RATIO C$$%+ R&+(o
T(-%'
Y%&$
Interpretation: Ideal current ratio is 4 but the above ratios are around :.:64 which is above ideal ratio that is justifiable in our industry.
FEASIBILITY REPORT
Page | 38
IMPERIAL BAKERS
CAPITAL BUDGETING A9% =
"%T
D9"=9 I%TIO !
"=9+ 9"+
F% T
DI$O @!TI! ?
" ' OF %$ F*O(
DI$O @!TI! ?
F%TO = ))C 4st )ear
77C 6
nd )ear
BB5 6DB
:rd )ear
B74 7
Bth )ear
D6: D57 4D 4C 6
5th )ear
647C5
:5B6
CB DBC
B6DB67
:5B6
D5 6
BC45B:
:5B6
:65
:5B6
D66C
:5B6
D77 75 4:6 B6 4B4 D : 8-, 8,6 6
Total
.D4
.74
.C:4
.65D
.5D:
" ' OF %$ F*O(
@M F%T
C:5547
CBD BC
D:464
46D: 56D
D5D65
674 75B
4:44B
BB6 BCB
4:BD66
5B65 6CC
F%TO = )C
66D:D5
CC4D5
CB:6
7DD75
7B457C
.DD
.D7
.DC4
.D64
.D54
470-,07
8./6/)-
NET PRESENT VALUE "articular !otal *iscounted
%mount :DB6D
!"'
FEASIBILITY REPORT
64747 1.4)486)3
Page | 39
IMPERIAL BAKERS
"%A B%> "9=IOD In our project -ay (ack -eriod is beyond 5 years. As at the end of the 5 years net cumulative
"=OFIT%BI*ITA I!D9 "articular !otal
%mount :DB6D 64747 0+,.67
I!T9=!%* =%T9 OF =9T@=! In case of I88 we re%uire two H-L i.e. one negative and one positive at two different discounting factor. Nence in our project we have taken in to consideration two discounting factor i.e. 4 and 44 discount level and at both the levels H-L is negative so it is not feasible within the scope of five years.
FEASIBILITY REPORT
Page | 40
IMPERIAL BAKERS
BREAK EVEN ANALYSIS "articular Total Income *ess : 'ariable ost *irect 1aterial *irect 3abour 9lectricity
)st Aear
66/,/60 708,440
4r# Aear -th Aear 8th Aear )000,,0 0 ))47)670 ))70,/.0
B5,4,B 5DB 76 76 :44 :47B
57BDD 54:5 :C7D7:
66644B 54:5 :7B6D
6D6CD 6B55 ::455
4C4C4 54B4
4C6DCC 5D7B
47D57 6D7:
4D:6D 75CB4
4C57 545 8,E.7E46 0 ,-6/-/) .)86800 .866/-7
667
574
6DC5
646)-).,48)/,
/)6666. 4.)-0)/
/,/60.4 4.)7676
466:: 47
.n# Aear
C6C 647C5 :546
7DD B6DB67 :6:7
D:7 BC45B: :5:5B
DC:BC :65 7B7
77D:5 D66C :B:C
6
4CC5
45:4
467
4565
5 475
655 5
675B 5
CB5 5
C5 C
4775 4774CC :B C:6 :5B6 :5B6 .040,76 )7-))-4 ).,/04 ,4,60, C.C4 7.B6
4BD4D 5 :5B6 )7-6,-0 ,/68-, 6.::
B:CD6 4:67 :5B6 )/4,748 )4660/4 7.4
:46:: 67B :5B6 ),,)))6 )88/,/0 C.B
64./470 ,/.0,00
647604/
,8)),-8
,)-4)/-
FEASIBILITY REPORT
Page | 41
IMPERIAL BAKERS
FEASIBILITY REPORT
Page | 42
