Overall Budget:

One Time Capital Cost:

FIXED COST:
1. Details of Land and Building
No. Details Area(sq. MT) PSM rate Total Value
1 Land and Building 600 15,375 92,25,000

2. Machinery and Equipment

No. Details No. of Amount

Machines
1. Water Circular Pump 1 25,000
2. Electric water heater 1 55,000
3. Jumbo Grinder with 8 blade system, 75 kg 1 1,00,000
capacity, 12.5 H.P. electric motor
4. Electric Mixer(75 kg capacity) 1 20,000
5. Packaging Machine 3 55,000
6. Miscellaneous equipment trays, tools etc. 10,000
Total Machinery and Equipment 2,65,000

3. Other Fixed Assets

No. Details Amount

1. Electricity and Installation 26,500
2. Office Furniture And Other Equipment 80,500
Total 1,07,000

Total Fixed Cost:

12,00,000+2,65,000+1,07,000=Rs.15,72,000
Recurring Cost:
Working Capital
No. Particulars Amount Amount
(per month) (per 1 year)
1 Personnel (Wages and Salary) 1,20,000 14,40,000
2 Raw Material 4,50,000 54,00,000
Amla
Aretha
Neem
Sikakai
Kalonji
Color, Perfumes, preservatives
Oils
Aloe-Vera
Lactic Acid
Formaldehyde
Menthol
Glycerin
Avocado
Potassium Sorbate
Bottles and Packaging Material
3 Utility of Power And Water 20,000 2,40,000
4 Other Contingent Expenses 15,000 1,80,000
Transport
Insurance
Telephone, postage, stationary
Repair and maintenance
Legal fee and Taxes
5 Advertisement Expenses 7,00,000 84,00,000
Total 13,05,000 1,56,60,000

Total Capital Investment

Fixed capital investment+ Total working capital for 1 year
15,72,000+1,56,60,000=Rs. 4,77,52,000

Sources of Funds:
Owned Capital (55%):2,67,03,600
Borrowed Capital (45% with 6% interest):2,18,48,400 (Rs. 13,10,904 interest)

PROFITABILITY:
 I- COST OF PRODUCTION:
For Year-I
No. Particulars Amount
1. Total Recurring Expenses per annum 1,56,60,000
2. Depreciation
On building @ 6% 72,000
On Machinery and Equipment @ 10% 26,500
On furniture and fixtures @ 10% 8,050 1,06,550
3. Interest on investment @ 10% 48,55,200
Total 2,06,21,750

II- Expected Sales for Year 1:

No. Particulars Rate per unit Quantity Value
1. Ponds Organic Shampoo 7 ml Rs.5 3,00,000 15,00,000
2. Ponds Organic Shampoo25 ml Rs.20 2,00,000 40,00,000
3. Ponds Organic Shampoo 50 ml Rs.45 1,50,000 67,50,000
4. Ponds Organic Shampoo 100 ml Rs.90 1,00,000 90,00,000
5. Ponds Organic Shampoo 250 ml Rs.160 70,000 1,12,00,000
6. Ponds Organic Shampoo 500 ml Rs.350 50,000 1,75,00,000
Annual Sales 870,000 4,99,50,000
 Sales increased by 10% per year and Cost of Producing Goods by 7%.

Projected Income Statement

For the Year Ending
Details I II III
Sales 4,99,50,000 5,49,45,000 6,04,39,500
Less: Cost of Goods Sold 2,06,21,750 2,20,65,273 2,36,09,842
EBIT 2,93,28,250 3,28,79,727 3,68,29,658
Less: Interest 48,55,200 48,55,200 48,55,200
EBT 2,44,73,050 2,80,24,527 3,19,74,458
Less: Taxes (40%) 97,89,220 1,12,09,810 1,27,89,783
Profit After Taxes 1,46,83,830 1,68,14,717 1,91,84,675

Balance Sheet:
Assets Year I Year II Year III
Amount(in Rs.) Amount (in Rs.) Amount(in Rs.)
Current Assets
Cash and cash equivalents 75,00,000 95,00,000 97,00,000
 Net Account Receivables 30,00,000 27,00,000 23,00,000
Inventory 1,35,29,750 1,20,00,000 1,05,00,000
Short-term deposits and pre- 50,00,000 55,50,000 57,50,000
payments

Net Current Assets 2,90,29,750 2,90,50,000 2,71,50,000

Fixed Assets
Machinery and Equipment 2,65,000 2,38,500 2,12,000
Less: Accumulated 26,500 26,500 26,500
Depreciation
Loading truck 90,09,000 85,58,550 81,30,622
Land and Building 92,25,000 92,13,000 10,56,000
Less: Accumulated 72,000 72,000 72,000
Depreciation
Furniture and Fixtures 80,710 72,660 64,400
Less: Accumulated 8,050 8,050 8,050
Depreciation
Other fixed Assets 26,500 26,500 26,500
Long-term investment 3,00,990 3,00,990 3,00,990
Net Fixed Assets 18,860,650 1,82,18,400 1,06,83,962
Total Assets 4,78,90,400 4,78,87,400 4,77,52,000
Liabilities and Owner’s Equity
Current Liabilities
Accruals 50,000 47,000 40,000
Net Current Liabilities 50,000 47,000 40,000
Long-term Liabilities
Long-term debt 88,400 88,400 60,000
Net Long-term Liabilities 88,400 88,400 60,000
Total Liabilities 1,38,400 1,35,400 100,000
Shareholder’s Equity
Common Stock 4,77,52,000 4,77,52,000 4,77,52,000

Total Stockholders’ Equity 4,77,52,000 4,77,52,000 4,77,52,000

Total Liabilities and Equity 47,890,400 4,78,87,400 4,78,52,000

Return on Investment:
𝑛𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡
=𝑡𝑜𝑡𝑎𝑙 𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 × 100
 Year 1 Year 2 Year 3
1,46,83,830 1,68,14,717 1,91,84,675
= × 100 = × 100 = × 100
4,77,52,000 4,77,52,000 4,77,52,000
=30.75%. =35.21% =40.17%

Break-even Analysis:
fixed costs
Break-even point(in units)=
𝑠𝑒𝑙𝑙𝑖𝑛𝑔 𝑝𝑟𝑖𝑐𝑒−𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑐𝑜𝑠𝑡𝑠
1.8190
=57.41−16.027 (per unit)

=0.043955 per unit.