BUS101

Introduction to Business

TERM PAPER

BUSINESS PLAN

PREPARED BY:
JUNAID AHMED (08105008)
REHNUMA FARAH SIFAT
(08105003)
AZIZUR RAHMAN (08104091)
NUSRAT JAHAN (08104137)
MD. ZUBAIR MATIN (07210031)
SEC: 0002
FALL SEMESTER

DATE: 29th November 2008

PREPARED FOR:
Ms. KOHINUR AKTER

Letter of Transmittal

1
To
Ms. Kohinur Akter
BRAC Business School
BRAC University

Subject: Submission of Term Paper on a business plan.

Dear Madam,

This is to inform you that we have successfully completed our term paper on a business
plan that you had assigned to us in the beginning of the semester. A term paper project
like this has contributed immensely in developing our knowledge about the formation and
operations of a business company. It would certainly help us if we move ahead to pursue
a career in the business world. We have tried to accommodate suggestions and valuable
information from your class lectures into our term paper which has assisted our work,
making it easier.

In writing this term paper we have worked together as a team, assisting each other and
consulting with you now and then to achieve perfection. We thank you very much for
letting us have the opportunity to work on this business plan and allowing us to
experience what would definitely benefit our future.

Thanking you

Yours sincerely,

Junaid Ahmed (08105008)

Rehnuma Farah Sifat (08105003)
Azizur Rahman (08104091)
Nusrat Jahan (08104137)
Md. Zubair Matin (07210031)

2
Executive Summary
Velocity, the event planners came into being on the 31st of March 2006 as a result of the
broad vision of Mr. Junaid Ahmed, and Mr. Azizur Rahman, the founder members of the
company. Velocity started its journey with the theme “The success behind your event(s)”.
Velocity started its operation from 1st of October 2006 by conducting the Farewell Party
for the foreign employees of Global Tech Ltd. Velocity’s recent activity is on the way of
signing a contract with City Bank Ltd. for their product launching program.

Velocity provides high-end support for Brand Creation, Brand Awareness and Brand
Enrichment through its unique ILP™ approach. Velocity brainstorms the ideas, plan and
identifies the concepts, locate the best place, and then promotes extensively. The best
part of this company is that the events are organized in quick time and with speed, as the
name of the company suggests. Velocity is unique in that we give our clients our
undivided attention. We listen to their needs and work with them to create the event of
their dreams. Our clients' wishes become our commands. Location of Velocity is in
North Dhanmondi which is a suitable place for the operations of the company.

Mr. Junaid Ahmed holds the largest amount of share at 25%,whereas the other
Managerial Partners Mr. Azizur Rahman, Ms. Rehnuma Farah, Ms. Nusrat Jahan and Mr.
Zubair Matin holds a share of 15% each and Ms X, Mr. Y and Mr. Z holds 5% share
each. Will to make creative events and implementing innovative ideas, which results in
the satisfaction of the client, works as the promoters for Velocity. Velocity believes in
client satisfaction and hence provides the best service to its customer.

At present Velocity is providing services within the Dhaka City. As we can see that there
will be more Live Consumer Promotion in Bangladesh in a few years time we have the
plan to expand our network and area coverage by the year 2010, first in the divisional
cities and then throughout the country. Study of the market reveals that normal people are
willing to be free from the hassles of organizing and planning for an event, which
indicates that the market is growing day by day.

3
 Table of Contents

Sl. No. Chapter Page No.

1.0 Introduction 5
1.1 Objectives 6
1.2 Methodology
1.3 Limitations
2.0 Business description 7
2.1 Name of business
2.1 Name of business
2.2 Form of business 7-8
2.3 Related industrial data
2.4 The company
2.5 Organizational structure
3.0 Services 9
3.1 Ideas
3.2 Smart/skilled hands 9
3.3 Client’s choice
3.4 Perfection in Competition
4.0 Entry and growth strategy 10
5.0 Management Plan 11-13
6.0 Marketing research and analysis 14
6.1 Corporate field
6.2 General Events
6.3 Charitable, social and political fund raisers
6.4 Competition 14-22
6.5 Marketing strategy
6.6 Pricing and sales tactics
6.7 Advertisement, promotion and distribution
6.8 SWOT analysis
6.9 Evaluation of market
6.9a) Questionairre#1 (Market survey)
6.9b) Questionairre#2 (Velocity’s client survey)
7.0 Financial Plan 23
7.1 Financial sources 23-28
7.2 Income statement for 2007
7.3 Balance sheet for 2007
7.4 Income statement for 2008
7.5 Balance sheet for 2008
7.6 Profitability statistics
8.0 Conclusion 29

4
 i
1.0 NTRODUCTION

“VELOCITY” is a Corporate Communication and Entertainment Production Company

providing high-end support for Brand Creation, Brand Awareness and Brand Enrichment

through its unique ILP™ approach. idea! That’s where the work starts from. We

brainstorm and plan to identify the best concepts to support our idea, locate the best

places and media, people and logistics, and then extensively promote the ideas through
our exclusive events. We have a clear vision that in the next few years from now there
will be more Live Consumer Promotion Events in Bangladesh not only reaching global
standards but also setting new benchmark. (As for entertainment, we knit it with
promotion for the perfect reach and positioning of our client’s brand.) As for us, we aim
to become an exclusive brand name for the concept of event management.”

Velocity was created with a broad vision in mind with Mr. Junaid Ahmed as the
Managing Director, Mr.Azizur Rahman as Director of Finance, Ms. Rehnuma Farah as
Director of Operations, Mr. Md. Zubair Matin as the Director of Events, Ms. Nusrat
Jahan as Head of the creative department and Ms X, Mr. Y and Mr. Z as event-
coordinators who have been the masterminds behind planning and orchestrating many
successful events both in groups and also as individuals. These eight being the brain, the
company was prompt to invite other fresh minds and talents who dare to dream the same
and VELOCITY came into being.

Our faith in achieving the very best along with the distinctive ability of generating fresh,
out of the box ideas, and accomplishing our goals with speed and accuracy allows us to
treat our clients with a service which is better than the best and exceeds their expectations.
Ideas! And more Ideas! Brainstorming the routes of the possible sources, identifying the
best ideas and implementing them with 24 hour updates and follow ups in each and every
sector(s) works as the algorithm of VELOCITY.

5
1.1 objectives
We keep every bit of detail of our clients and their events to make the experience both
pleasurable and memorable. Therefore we offer a host of packages and services
specifically tailored to the needs of our clients. We make sure that the event is managed in
an organized manner and the planning is managed in a swift period of time so that there is
time left to make a few adjustments if necessary. We are confident that this business
venture will be a success and we estimate that our net income will increase modestly by
the years to come.

1.2 methodology
When clients come to us with a certain event to plan, the first thing we do is come up with

an idea and identify the best concepts to support our idea. Then we move ahead to locate

the best places and media, people and logistics, and then extensively promote the ideas
by putting them in organizing the event. This method is called the ILP™ approach.

l
1.3 imitations
Velocity has to deal with a few limitations since it is a company that has just began on the
path of business. The very first of them would be that we do not have sufficient funding
required for extensive advertising as it is quite expensive. We have to hire a lot of
equipment (high resolution multimedia projectors, heavy-duty speakers, sound mixers,
etc) from the market in order to support our business as we do not have much of it yet.
These are the few limitations we face but we are looking forward to overcoming them in
the long run.

6
2.0 business description
2.1 name of the business
The Name of the Business is Velocity (Pvt.) Ltd.
The contact address for Velocity is: 1/c, North Dhanmondi (3rd floor)
Bashiruddin Road, Dhaka

f
2.2 orm of the business

Velocity is registered under “Dhaka City Corporation” as a limited partnership company

where Junaid Ahmed, Azizur Rahman, Rehnuma Farah, Nusrat Jahan and Md. Zubair
Matin are the general partners and Ms X, Mr. Y and Mr. Z are the limited partners of the
business.

r
2.3 elated Industrial Data
At present there are some other Event Management firms in Dhaka, but Velocity presents
itself as a unique one with its extraordinary event planning, providing total service as
client’s criteria to the best. Velocity differs from other organizations since it acts not only
as an event organizer but also as an inventor of new events. That’s why VELOCITY is
an event planner where as the others are only mere event organizers.

t
2.4 he company

7
Velocity has chosen its operations in the following fields:
i. Corporate Events
ii. Individual Events
iii. Promoting brand name
iv. Media Events.

Corporate & individual events allow us to grab the lion share of the market and at the
same time provide us with the opportunity to work under different circumstances.
Velocity is eager to meet new challenges, become an idol and post a new vision in the
whole event management industry.

2.5 organizational structure

s
3.0 ervices

8
 i
3.1 deas

Velocity’s pride lies in providing extra-ordinary ideas and uniqueness in implementing

those ideas.

s s
3.2 mart/ killed hands

Velocity believes in working with a young group of people who bear the energy, will of
invention and capability to materialize their dreams. They are chosen under a strict
process of recruitment where smartness in creativity, difference in presentation, skills in
implementation are given extra preference.

c
3.3 lient’s hoice c
Client satisfaction is the main objective of Velocity. Client’s criteria, budget and tentative
time limit gets priority from us. Velocity is always sincere and dedicated to plan and host
the complete event within the time, budget and choice of clients.

3.4 perfection in presentation

Perfection is the key-term for Velocity. From the beginning to the end of an event, we
only perform for perfection. No matter, how tough the task is, Velocity never
compromises with perfection.

4.0 entry and growth strategy

9
Velocity is strictly affixed with its strategy to achieve supremacy in the event
management world and work with a static goodwill. As Velocity is not the only event
management firm in the market, it has some special plans to enter into the market and
capture a ‘lion’s share’. For getting in touch with our potential clientele, we are gradually
contacting the human resource personnel from various companies and others will be
approached using appropriate channels of contact.

As for individual events, Velocity has some special pre-planned themes for various
categories of events like weddings, wedding receptions or birthday parties. These themes
are designed and verified by the expertise of Velocity. The charges for these various
themes have been set considering different economic classes so that everyone fits into our
basic client list.

Velocity intends to plan some special events which will give it an identity as an event
planner. For example, Velocity is now working for a regular unplugged concert with the
title “Live Entertainment” under its own banner at Dhanmondi. It will help Velocity in 2
ways, the primary one being advertisement and the other one is its gradual ascend in
being a top brand name in the unplugged promoter in the music world of Bangladesh.

Velocity has another program to promote various corporate Brand Names along with our
own events. We are always in search of new ideas. Whenever Velocity feels that a new
idea would suit certain brand name it tries to find out the best ways for the promotion of
that specific brand name. In this way Velocity also performs as an advertising agency,
which broadens up the field of business for the company.

5.0 management plan

10
 Team Members Experience % of Share
Junaid Ahmed Worked as an administrative officer in
25%
(Managing Director) Banglaview (Pvt.) Ltd.
Azizur Rahman Worked as financial advisor in Shell
15%
(Director, Finance ) (Pvt.)
Rehnuma Farah Worked as a Human Relations officer in
15%
(Director, Operations) Awards (Pvt.) Ltd.
Nusrat Jahan Former Chief Web-designer in Euro-net
15%
(Head of Creative Dept.) (Pvt.) Ltd.
Md. Zubair Matin Worked as a spokesperson for an
15%
(Director of Events) international organization, AIESEC.
Ms. X 5%
Mr. Y 5%
Mr. Z 5%

Junaid Ahmed
Junaid Ahmed is working as the managing director of Velocity.
Basically he is working as the supreme authority of Velocity. He has divided the authority
of different sectors under the four other owners who are working as directors according to
their subject matter. Not only supervising the four directors but he also controls the
human resource department which is seemingly a real helpful activity for maintaining the
organizational staff.

Azizur Rahman
Azizur Rahman is working as the finance director of Velocity. He is
responsible for coordinating, supervising and directing the financial activities of the
organization. He is fully empowered to appoint, train and evaluate the finance managers.

11
He executes the financial policies issued by the managing director and reports
periodically or when requested, on the financial condition of the organization. Mr. Azizur
Rahman has an assistant accountant working under him to assist him maintain the
company’s financial records.

Rehnuma Farah
Director of operations of the company "Velocity" is the specified
designation of Ms. Rehnuma Farah. She is basically doing her tasks collaborating with
director of events so that the company may get a fruitful result without any disturbance.
She is the supreme authority of her department & controls the organization's every single
operation without interference of any other department. Operations of the company and
all events managed are controlled and monitored by our director of operations- Ms.
Rehnuma Farah and a manager works under her to assist her in her work.

Nusrat Jahan
Nusrat Jahan- head of the creative department, contributes
immensely by creating effective thoughts & activities which gives the company
"Velocity" an edge over any other event management company. She has made her
designation more appropriate for her by taking some creative steps or unique
implementation of thoughts while organizing all events and a creative assistant helps her
carry this load. Her activities make our clients think about us; so that in future if they
want to create an event then they would come to us first as they know that we can present
them with creative and satisfying events according to their demands.

Md. Zubair Matin

Md. Zubair Matin is the director of events in our company. Every
single event is organized under the observation of Md. Zubair Matin. More or less he
works collaborating with Rehnuma Farah. Md. Zubair organizes about the entire event

12
with the help of an event coordinator assisting him but he has to make a direct
communication with the director of operations while doing so.

Ms. X, Mr. Y and Mr. Z

X, Y, Z are the limited partners of Velocity. They do not have the
rights to take part in terms of decision making of the organization but they can contribute
with their efforts in organizing the event.

As we all know that our company just started its journey from a year ago that’s why we
haven’t hired that many staff for our management team. But we plan to hire additional
experts very soon to assist the chief directors and share the work load.

6.0 marketing plan

Velocity’s potential clients are of different ages, different income levels, and from
different classes since we have kept its field of operations open for large and diverse

13
potential clients. The following list represents the major group we are targeting for our
marketing plan.

6.1 corporate field

Dhaka being the capital, all business organizations are interested in maintaining their
operations from here, because of which the opportunity of business in Dhaka is rising and
this gives us a better chance to explore our client network. Our corporate clients are the
most valued of all our clients. Their interest in our services is pleased by the availability
of our facility for seminars, meetings, banquets, cultural events and even casual parties.
Our full range of consultation and services are ready to be the guide to satisfy our clients’
demand. We are ready to make plans and organizing all kinds of corporate events.
Velocity is linked up with some prominent venues in Dhaka, which have proved
themselves to be the best for any sort of corporate events. We also have various well
renowned catering service providers, some franchise outlets of foods, and also some local
suppliers in our linkage. Our full service consulting team is a must for our corporate
clients. Our consulting team acts as a bridge among the clients and Velocity. They collect
data, criterion, and all sorts of requirements from the client, and convey it to us. The team
also updates our clients informing them about our progress. We take care of all aspects of
the event and significantly reduce the time requirements of our corporate clients. All
preliminary footwork would be handled by the hands of Velocity and would require only
final decisions from the corporate liaison.

6.2 general events

In this field of operation Velocity covers the following events:

14
 • Wedding anniversaries
• Birthday parties
• Marriage ceremonies
• Concerts
• Picnic
• Sports Tournaments
• Fairs
• Fashion Shows

We are ready to serve our clients with the total support from the very beginning till the
very end. We provide overall support in planning including shopping, organizing,
catering, and presentation (in case of weddings, anniversaries, and birthdays). We don’t
want our clients to miss the joy and emotions attached with the events, but we, ourselves
get in string with the joys and emotions of the clients which helps them to reduce the
burden of that event, and the touch of Velocity makes the parties memorable. We believe
a satisfied client will work more efficiently than any other advertisement. We also
organize concerts as well as sports tournaments. Velocity is hosting a corporate football
tournament between the private banks of Dhaka city in the upcoming month.

c
6.3 haritable, ocial ands political fund raisers

15
There are a lot of fund raising programs going on in our country throughout the year. If
the initiators of these kinds of charitable, social and political events get a full professional
experienced and a pre-organized team to complete their events within their requirements,
they will definitely be interested to take the services from Velocity. Velocity is
completely ready for planning and organizing these kind of events. We conducted a
successful blood donation program two months ago which encouraged a lot of young
people to donate blood. We are always on a look-out for returning a little back to the
society now and then.

c
6.4 ompetition
Since Velocity provides complete service required for an event, Velocity’s competition is
limited. There are few firms who offer event organizing but there are none who meet the
challenges as best as Velocity. Decorators, caterers and Hotels or Restaurants provide
only a portion of the services we provide. The following is the list of our competing
companies:
i. TRANSCOM
ii. SABA.
iii. SINAPRA.
iv. SIEGEL.
v. SUBPRIME MELTDOWN.
vi. THE SOURCE.
Comparing Velocity with the other firms is difficult since Velocity is not competing
directly with any of these firms. The comparative advantage of the firms lies in that they
are established in the market, but the weakness lies in the lack of flexibility of the firms,
their failure being in their disability to provide complete service of an event. Velocity
provides a variety of options to the client, which allows the client to choose the best one
among those, according to their demands and requirements. Charges set by Velocity lies
within the client’s limit and provide complete satisfactory service for the event. This gives
Velocity comparative advantage over the others. We plan to compete over the other firms
by staying in the spotlight of events more frequently than the others.

16
6.5 marketing strategy
The general objective of Velocity is to create exciting and unique events. We seek to
organize events not only on behalf of companies and corporations in Dhaka but also
individual or general events and charitable and social fund raising events. Very soon
Velocity plans to extend its field of operation among the major cities of the country. To
get in touch with our potential clientele, we are contacting the human resource personnel,
and others will be approached using the appropriate channel of contact. Flexible service
charges, extraordinary concepts and ideas and uniqueness in implementing ideas are the
features that would attract the potential clientele towards Velocity. Velocity started its
regional business in Dhaka with its office located in North Dhanmondi which is an ideal
location for such a firm.

6.6 pricing and sales tactics

Velocity provides service charges which are not necessarily static, rather flexible. We
have established a standard set of service charges based on the service criterion and
duration of the events. Velocity believes that clients will be satisfied with the charge setup
since it is a price competitive firm along with uniqueness, extraordinary and interesting
ideas which any other single firms does not offer.
For the first year, the share holders of Velocity will be the sales force. Our experiences
and skills permit us to take care of the business aspects by ourselves. During this period, a
percentage of our commission from the events will go to the company’s fund. After one
year, we foresee hiring additional staff, which will include sales help, receptionist and
secretary, or operations supervisor.

6.7 advertisement, promotion and distribution

17
Advertisement cost is one of the major financial expenses of an organization, but Velocity
does not believe advertising in local media rather it believes that a satisfied client will
work more efficiently with a company that satisfy their requirements and ensures quality
rather than those which spend much on advertisement. So Velocity works for the
satisfaction of the client which will lead to the promotion of the company itself. We plan
to advertise in the paper before presenting our own events, which will result in
advertisement of Velocity and of the event. The review of the event in the leading daily or
weekly newspapers, and T.V medias will be supervised by Velocity too, which will also
work as its advertisement.

For the first three years Velocity has no plan to expand of its Area of operations outside
of Dhaka. In the same context, we will try to cover the whole part of Dhaka with its effort
and then if possible we will work for opening branches in Divisional cities.

6.8 swot analysis

Strengths

• The main strength of Velocity lies in the fact that Velocity is an event planner
whereas other event management companies are mere event organizers. We

18
 provide a variety of options for the client to choose from and we plan the event of
their dreams.

• We keep complete knowledge of our clients so that whenever they come to us we

don’t have to get to know them all over again.

• We follow a different advertisement policy than other companies. Our events are a
trademark and unique in its own way and the event itself is a form of advertising
for us. That is why we have an experienced creative department to help us
maintain this level.

Weaknesses

• Cost of hiring equipments for our events is one of our major weaknesses. Since
our company is newly formed, we haven’t yet been able to invest enough to buy
our own equipment which is quite expensive when it comes to high-resolution
multimedia projectors, heavy-duty sound speakers, etc.

• No backup is another one of our weaknesses. The five directors are the brains
behind the company but if one of them, e.g. head of the creative department
decides to dissolve her partnership and leave this company then Velocity will fall
in a serious crisis because it is because of her we are able to plan such creative
events which is a trademark for Velocity.

• The other event management companies mentioned in the competition section are
quite well established so if they lower their prices to create stiff competition it is
quite difficult for Velocity since it is newly formed and doesn’t have the necessary
funding for support if prices need to be lowered.

Opportunities

• There is plenty of opportunity for Velocity to perform in the market because

nowadays a huge number of people don’t want to get into the troubles of arranging

19
 their own events and they are always on the lookout for event management
companies who are fresh and provide unique ideas. Such a company is Velocity.

• Velocity has more opportunities in the market because it is not only an event
organizer but an event planner too. Clients would definitely keep that in mind.

• There are plenty of fresh minds looking forward to working in event management
companies and with the kind of approach Velocity has, it is sure to attract such
young people.

Threats

• Competition is always a threat when there is so many of the same kind.

Especially since Velocity can’t cut down its price due to lack of funding.

• Not being able to operate on a wide-span basis is also a threat to us

because tomorrow if we get a contract for planning an event in some other
divisional city besides Dhaka then we would definitely face major problems as
we would not be familiar with the environment.

6.9 evaluation of market

Velocity executed a survey to evaluate the market condition, to be updated about the
changes going on in this field, to find how people are accepting it and what do the clients
want from the event organizers. The survey reflects that 30% of the people would like to
be free from the hassles of arranging an event and 25% of them are satisfied with the
services received from the event organizers, whereas Velocity’s clients were 100%
satisfied regarding the service. This survey acted both ways as a marketing tool and also
to maintain the quality of service. The following is the set of questionnaire:

20
6.9 a) questionnaire #1 (Market survey)
i. Does your company sponsor any events? If yes, how many events does your
company sponsor every year?
ii. How many events does your company arrange every year?
iii. What are the services that you require for an event?
iv. Is there any consultant for the events organized by your company? If not, who
conducts the events of your company?
v. Were you ever engaged with any professional event organizer?
vi. If yes (answer to question no. v), how were the services?
vii. How were the services charged? Do you feel it was justified or unjustified?
viii. Would you like to be engaged with any professional event organizer?
ix. What type of services would you like to have from the firm?
x. How do you look at being engaged with an event organizer?
xi. What are the services that might encourage people to be engaged with event
management firms?

6.9 b) questionnaire #2 (Velocity’s client survey)

i. Are you satisfied with the services of Velocity?
ii. In case of both yes and no briefly explain. Please mention the part where
improvement is necessary.

21
 iii. According to you what is the best part and the main drawback of Velocity?
iv. Is the service charge of Velocity justified? If no explain.
v. Have you ever had services from other firms?
vi. Did you feel any difference between Velocity and others? (If answer to question
no. v is yes)
vii. Any suggestion for Velocity? Any features you would like Velocity to add in the
services?

f
7.0 inancial plan
Velocity requires 50% – 60% deposit of the total charge on signing a contract. The due is
to be paid within two weeks of the event so that Velocity can pay her vendors on time.
Since Velocity has a contract with its vendors, we hardly need cash money because most

22
of the job is done in an agreement that the expenses or the charge will be paid after the
events.

f
7.1 inancial ources s

Financial source

'Investors
capital
15%

Owner's capital
85%

i s
7.2 ncome tatement for 2007
Velocity (Pvt.) Ltd
Income Statement
For the year ended 31 October, 2007

23
 Total Service Revenue 55,00,000 Tk.
Cost of services provided (25,00,000) Tk.
Gross profit 30,00,000 Tk.
Sales & Administrative Cost
Communication & Transportation expenses 50,000 Tk.
Office expenses 10,000 Tk.
Rent 36,000 Tk.
Salary 1,00,000 Tk.
. (1,96,000) Tk.
EBIT (Earnings Before Interest & Taxes) 28,04,000 Tk.
Less: Interest (12,000) Tk.
EBT (Earnings Before Taxes) 27,92,000 Tk.
Less: Tax (9,000) Tk.
Net income 27,83,000 tk..

7.3 balance sheet for 2007

Velocity (Pvt.) Ltd
Balance Sheet
As at 31st October 2007

24
 Assets
Current assets:
Cash 20,00,000 Tk.
Accounts Receivable 10,00,000 Tk.
Total Current Assets 30,00,000 Tk.
Fixed Assets:
Fixtures and fittings 60,000 Tk.
Office Equipments 1,00,000Tk
Trade Mark & Patent 1,00,000Tk
Total Fixed Assets 2,60,000 Tk.
Total Assets 32,60,000 Tk.
Liabilities
Current Liabilities:
Accounts Payable 2,00,000Tk.

Short-term bank loan 2,77,000 Tk.

Total current liabilities 4,77,000 Tk.

Owner’s Equity
Junaid Ahmed 6,95,750 Tk.

Azizur Rahman 4,17,450 Tk.

Ms. Rehnuma Farah 4,17,450 Tk.

Ms. Nusrat Jahan 4,17,450 Tk.

Md. Zubair Matin 4,17,450 Tk.

X 1,39,150 Tk.

Y 1,39,150Tk

Z 1,39,150Tk.
27,83,000 Tk.
Total owners’ equity
32,60,000 Tk
Total liabilities & owner’s equity
.

i s
7.4 ncome tatement for 2008

25
 Velocity (Pvt.) Ltd
Income Statement
For the year ended 31 October, 2008

Total Service Revenue 1,20,00,000 Tk.

Cost of services provided (49,00,000) Tk.
Gross profit 71,00,000 Tk.
Sales & Administrative Cost
Communication & Transportation expenses 90,000 Tk.
Office expenses 25,000 Tk.
Rent 36,000 Tk.
Salary 1,00,000 Tk.
. (2,51,000) Tk.
EBIT (Earnings Before Interest & Taxes) 68,49,000 Tk.
Less: Interest (24,000) Tk.
EBT (Earnings Before Taxes) 68,25,000 Tk.
Less: Tax (20,000) Tk.
Net income 68,05,000 tk..

7.5 balance sheet for 2008

Velocity (Pvt.) Ltd
Balance Sheet
As at 31st October 2008

26
 Assets
Current assets:
Cash 50,05,000 Tk.
Accounts Receivable 18,00,000 Tk.
Total Current Assets 68,05,000 Tk.
Fixed Assets:
Fixtures and fittings 1,00,000 Tk.
Office Equipments 3,00,000Tk
Trade Mark & Patent 3,00,000Tk
Total Fixed Assets 7,00,000 Tk.
Total Assets 75,05,000 Tk.
Liabilities
Current Liabilities:
Accounts Payable 3,45,000Tk.

Short-term bank loan 3,55,000 Tk.

Total current liabilities 7,00,000 Tk.

Owner’s Equity
Junaid Ahmed 17, 01,250 Tk.

Azizur Rahman 10,20,750 Tk.

Ms. Rehnuma Farah 10, 20,750 Tk.

Ms. Nusrat Jahan 10, 20,750 Tk.

Md. Zubair Matin 10, 20,750 Tk.

X 3, 40,250 Tk.

Y 3,40,250 Tk

Z 3,40,250 Tk.
68,05,000 Tk.
Total owners’ equity
75,05,000
Total liabilities & owner’s equity
Tk .

7.6 profitability statistics

27
 c
8.0 onclusion

28
Velocity competes with none but only with itself, smart ideas, presentation, bringing the
ideas in life and quality of an event. To get in touch with our potential clientele, we are
contacting the human resource personnel, and others will be approached using the
appropriate channel of contact. Flexible service charges, extraordinary concepts and ideas
and uniqueness in implementing ideas are the features that would attract the potential
clientele towards Velocity. Pricing, services, promotion (publicity) and placing makes
Velocity an individual in the competition of event management firms. . Velocity differs
from other organizations since it acts not only as an event organizer but also as an
inventor of new events. That’s why Velocity is an event planner where as the others are
only mere event organizers. Very soon we will see this company climbing to the peak of
success, one towards which Velocity is already paving the way.

29