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Financial Analysis And Calculate Projected Income Statement Accounting Essay

This project was assigned by the University of Central Punjab to prepare Feasibility Report of Entertainment point on Lahore Canal, Our Advisor give us all material about the project in which everything is mentioned that what kind of project he demand from us at earlier we think that it is an easy task because most of the contents required were understood but as we started working on the project we realized that it’s a tough job. We try to include accurate data and figures whereas some assumptions are necessary to be taken. In this time period we were in touch with Professional Engineers, Charted Accountants and market with different aspect and by making this professional project we gain a lot of knowledge from different dimensions.

Further that because we are bound to establish Entertainment Point on Canal so we recommend establishing this point in front of Medical Colony near Jalo because of huge space as per our requirement. We conduct a survey on the targeted Population and got appreciable response to open this point. Then we prepare the feasibility report in which we include Project Cost, Yearly Expense, Yearly Revenue, Income Statement, Payback Period and Internal Rate of Return to check Whether it is attractive to make investment or not?

During the preparation of the project, we have faced many difficulties especially in calculating Total Construction Cost, Project Cost and Financial Analysis etc. All were tough but interesting tasks but we have done them successfully. Despite of all these problems and tough task, the whole work was very worth full. The whole project was very interesting and we have learned a lot.

Acknowledgement

“After Almighty Allah, who is very merciful and most beneficial to us, we would like to thanks our advisor Prof. Hafiz Musadiq who helped us in every step or whenever we faced any problem on the ladder regarding the preparation of the project. He never disappoints us on any step which make hurdle for further proceeding. We pay our deepest gratitude to all those persons and sites that helped us in getting primary as well as secondary data and information to particular problem regarding the project for implementation point of view”.

Table Of Contents

Table Of Contents 5

Executive Summary 7

INTRODUCTION 8

Capacity 8

VISIT FREQUENCY 9

Investment 9

Proposed Location 9

Market Entry Timing 9

RISK FACTORS IN DECISION MAKING 10

Recommendations 10

Marketing 10

Pricing 10

Product/Product Packaging 10

Technology & Processes 11

Machinery Cost 11

LAND & BUILDING REQUIREMENT 11

Land 11

Requirement 11

Space Allotment 11

Construction Cost 12

Utilities 12

Suitable Location 12

Sketch 13

HUMAN RESOURCE 13

FINANCIAL ANALYSIS 13

Project Appraisal Summary 14

Total Project Cost 14

Projected Income Statement 15

Balance Sheet 16

Cash Flow Statement 17

Payback Period & Internal Rate of Return 18

Financial Calculation Notes 19

Annual Revenue Budget 19

Year wise Calculation of Gate & Parking 20

Year wise Calculation of Entertainment Point Money 21

Year wise Calculation of Food, Souvenir Stalls & Sign Boards Money 22

Notes for Tools, Equipment, Computer & Telephone 23

Notes for Vehicles, Furniture & Security System 23

Notes for Direct Cost & Expenses 23

Notes for Salaries Expenses 24

Notes for Annual Stores, Spares, Repair & Maintenance 25

Notes for General Expenses 26

Notes for Schedule of Depreciation 27

Assumptions 28

Executive Summary

This project is submitted to University of Central Punjab as per the course requirements of Research Project. Our institute assigned us the topic “Establishing Entertainment Point on Lahore Canal” for our project. In this project all aspects are covered as per requirement. In the initial stage we have provided the purpose of this document and factors and decision making for investment. Then we have Prepared project plan and all project profile which contain project brief, capacity, investment, Product Mix, Financial Summary, Location, timing and strategic recommendation etc. Then we have discussed technologies and processes which are used in our project which include machinery requirement and repair & maintenance. After that we have chosen suitable location and measured it for construction cost & utilities requirements for the running of this project etc. then we have figured out the Human Resource requirement as per our project size. At the end we have conducted Financial Analysis and calculate projected income statement, Revenue, Expense Payback Period and IRR (Internal Rate of Return) and gave all financial calculation notes and Key Assumptions.

INTRODUCTION

This project is basically designed to facilitate the canal transportation as well as to provide an entertainment point for children & youngsters. The survey conducted before the project feasibility reveals that our country has a shortage of picnic point and the people want entertainment after their routine life where they can come with friend and families to relax themselves. The canal is a beautiful place but unfortunately no project has been established to realize its beauty. Although many decision has been made by PHA and other government organizations but they were only limited to the decision. In this project we have tried to cover all aspects regarding start up production marketing and finance.

Our product in this case would be the service, which would be through selling joy rides and providing pleasant environment to the people visiting this point either they are using the canal transportation or visiting it separately. For the attraction of population, a combination of Six (6) different rides is used in this feasibility study. Although for this purpose if required the foreign rides can be imported but this will increase the cost very much whereas Video Games, Mini Zoo, etc are some of the other options that can also be attractive in the project. In addition to joy rides, foods and beverages stalls, advertisement sites, and car parking are other sources of revenue.

Capacity

Project Capacity is based on

180,000 visitors per annum

6 Rides are installed in an area of 6 Kanals.

Number of working days has been taken as 360.

The average duration of rides as 3 minutes. Loading and off loading time for the rides have been taken as 7 minutes so one round of ride will consume 10 minutes in total, which would result in 6 rounds of rides per hour.

Capacity and the seating capacity are calculated as under:

Capacity of joy rides

Rides

Van

Seats/Van

Total Seats

Capacity/Day

Clown Around

6

4

24

1,008

Swan

6

2

12

504

Mono Cycle

3

6

18

756

Kiddy Rides (10 No.)

10

1

10

420

Dodgem Cars

4

2

8

336

Free Fall

2

6

12

504

Total

31

21

84

3528

Total capacity of 84 seats x7 working hours per day x 6 Rides per hour.

Maximum number of visitors for any day has been assumed to be 30% of the total Capacity, which comes out to 1,058.

VISIT FREQUENCY

The estimated visit frequency of these visitors is given below:

• 50% would visit once a year

• 25% would visit twice a year

• 15% would visit thrice a year

• 10% would visit four times a year

It is further estimated that average spending per person per visit to the Entertainment Point is Rs 100. Whereas final results can vary depending upon spending per person, ticketing fee, parking fee and other charges.

Investment

Total cost of the project Rs. 20 million.

Fixed cost of Rs. 19.8 million.

Working capital of Rs. 0.2 million.

Proposed Location

The proposed locations for the this project are;

• In front of medical colony

• Wafaqi Colony

• Chabacha Area

The most suitable location on which all the assumption and calculation is done is in front of Medical Colony where there is suitable place for parking and is within the reachable distance for the people.

Market Entry Timing

The main focus in this case is the children/kids and youngsters ranging from age group of 3-25 years, but the investor have to find out the timing when they can give time after their daily routine.

The Peaks season

Summer/winter holidays of the kids

Off peaks season

Ramadan/Muharram & the days of exams respectively.

Other than the Off Peaks, this project can then launched at any time in the whole year because this can also be used by the traveler of the canal transportation for stay & wait.

RISK FACTORS IN DECISION MAKING

Before making an investment it is beneficial to consider the following risk factors;

The number of visitors is the main portion of this project which will make it successful. This point must be established on that place where there is a continuous flow of visitors. The best solution is to evaluate the minimum number of visitors per day.

We have considers that it will attract 2%-3% in the target location which figured out as 500 to 600 visitors per day.

Selection of rides based on the popularity and space available for the project. As this project is associated with canal transportation so it can be established at any point where there is a suitable space and the rides can be increased or decreased to cover the available. We have chosen the place in front of Lahore dental college as there is a huge place there for average number of rides parking and other facilities. The most benefit of that place is that it will affect the traffic flow on a lesser extend as compared to wafaqi colony and chabacha.

In addition to rides there must be other facilities like suitable place for sitting, clean drinking water, ticket counter and food and beverage stops.

Recommendations

Marketing

Marketing of this Entertainment Point will play a key role in the success of project. Major marketing options include, site advertisement, cable ads, signboards, pole signs, Billboards and handbills etc.

Pricing

It is recommended that the average spending per person per visit to the Entertainment Point should not exceed average per day income of the targeted market. Any pricing strategy should be designed based on this guideline.

Product/Product Packaging

Product/Product package can be directly correlated with the type of location, spending power of people in that area and the total investment available with the entrepreneur for this project.

Technology & Processes

It is recommended that local machinery with local installation is favorable. There is also foreign with technology with installation are available but it increases the cost which will become unaffordable for the investment in more than one point. Major Concern for the ride is the quality and safety measures which are reasonable in local machinery and local installation capabilities are acceptable. Therefore for this project local technology with local installation has been considered whereas foreign technology can be used if required which results variation in given results.

Machinery Cost

Machinery Cost in Rs.

Name of the Rides

Qty

Unit Cost

Total Cost in Rs.

Clown Around

1

1,170,000

1,170,000

Swan

1

910,000

910,000

Mono Train

1

1,400,000

1,400,000

Kiddy Rides

10

100,000

1,000,000

Dodgem Cars

4

25,000

100,000

Free Fall

1

1,600,000

1,600,000

Total

6,180,000

LAND & BUILDING REQUIREMENT

Land

For the proposed set up on the green belt of the canal, the land is in the ownership of govt. and this project is made for the govt. to welfare the nation. Therefore the cost of land is not included in this report.

Requirement

For the proposed set up with 6 Rides, a total of 2,4000 sq.ft of land requirement is estimated for the project. This land requirement includes space for installation of rides, management building, ticketing booths, food and beverages places, parking space and others.

Space Allotment

Joy Rides 15500 sq.ft.

Food Stalls & sign Boards 900 sq.ft.

Other Construction Area [1] 2000 sq.ft.

Construction Cost

Total cost of building & civil works is estimated at Rs. 7.9 millions including Joy Rides and the other items.

Construction Cost

Facilities

Total Cost

Civil works for Joy Rides

3,845,000

Buildings

2,118,000

Landscaping Work

1,965,000

Total

7,928,000

Utilities

Main utilities would be power, water and gas. Water supply would be through local tube well. In addition to it, 3 computers with UPS, 1 telephone connection with internal exchange, telephone sets is also required for communication, accounts and data management. Almost Rs. 8 millions is estimated as annual expense associated with utilities.

Utility Requirement

Facilities

Total Cost

Gas

500,000

Electricity

6,500,000

Water

500,000

Telephone

500,000

Total

8,000,000

Suitable Location

The suitable location for the project would be

In front of Medical Colony

Wafaqi Colony

Mughal Pura

The most favorable space for this project is in front of Medical Colony because our main purpose is to provide Entertainment Point on Canal as well as this space has a huge space for parking and will affect the traffic flow lesser as compared to other locations. There is another benefit is that 3-4 colonies and Societies are linked with this Location.

Sketch

HUMAN RESOURCE

The following requirement of staff along with their levels and monthly salary is foreseen for this project:

Human Resource Requirement

Designation

Salary

Staff

Monthly

Annum-Rs

Chief Executive Officer

1

30,000

360,000

Senior Management Admin Staff

2

25,000

600,000

Middle Management Admin Staff

2

20,000

480,000

Junior Admin Staff

2

15,000

360,000

Technicians & Electricians

4

8,500

408,000

Machine Operators & Machine attendance

8

8,000

768,000

Guards, Mali, Janitorial Service etc.

8

7,000

672,000

Total

27

113,500

3,648,000

FINANCIAL ANALYSIS

FINANCIAL ANALYSIS

Project Appraisal Summary

Parameter

Details

Anticipated Commissioning

1 Year

Location

In front of Medical Colony on Canal

New/ Expansion

New

Setup

Govt. Owned

Total Project Cost

Description

Total Rs

Building & Civil Works

7,928,000

Plant & Machinery

6,180,000

Tools, Equipment, Computers & Telephones

347,000

Electric Installations

4,000,000

Vehicles, Furniture & Security System

1,119,400

Contingencies

309,000

Total Fixed Cost

19,883,400

Net Initial Working Capital

200,000

Project Cost

20,083,400

Income Statement

Projected Income Statement

Year 1

Year 2

Year 3

Year 4

Year 5

Revenue

22,572,000

24,783,120

27,212,853

29,882,969

32,817,419

Direct Cost & Expenses

15,093,473

15,682,456

16,303,700

16,959,340

17,651,670

Gross Profit

7,478,527

9,100,664

10,909,153

12,923,628

15,165,748

Other Income

0

0

0

0

0

Operating Profit

7,478,527

9,100,664

10,909,153

12,923,628

15,165,748

Financial Charges

0

0

0

0

0

Profit Before Tax

7,478,527

9,100,664

10,909,153

12,923,628

15,165,748

Taxation

0

0

0

0

0

Net Profit

7,478,527

9,100,664

10,909,153

12,923,628

15,165,748

Projected Taxable Income Statement

Year 1

Year 2

Year 3

Year 4

Year 5

Revenue

22,572,000

24,783,120

27,212,853

29,882,969

32,817,419

Direct Cost & Expenses

15,093,473

15,682,456

16,303,700

16,959,340

17,651,670

Gross Profit

7,478,527

9,100,664

10,909,153

12,923,628

15,165,748

Other Income

0

0

0

0

0

Operating Profit

7,478,527

9,100,664

10,909,153

12,923,628

15,165,748

Financial Charges

0

0

0

0

0

Profit Before Tax

7,478,527

9,100,664

10,909,153

12,923,628

15,165,748

Taxation

2,991,411

3,640,266

4,363,661

5,169,451

6,066,299

Net Profit

4,487,116

5,460,398

6,545,492

7,754,177

9,099,449

Balance Sheet

Projected Balance Sheet

 

 

 

 

 

 

 

 

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Capital & Reserves

Capital

20,083,400

20,083,400

20,083,400

20,083,400

20,083,400

20,083,400

Retained Earnings

-

4,487,232

9,947,746

16,493,354

24,247,647

33,347,212

Sub Total

20,083,400

24,570,632

30,031,146

36,576,754

44,331,047

53,430,612

 

 

Current Liabilities 

Accrued Expenses

-

364,800

393,984

425,503

459,543

496,306

Tax payable

-

2,991,488

3,640,343

4,363,739

5,169,529

6,066,377

Sub Total

-

3,356,288

4,034,327

4,789,241

5,629,072

6,562,683

 

 

Total Equity & Liabilities

20,083,400

27,926,920

34,065,473

41,365,995

49,960,119

59,993,295

 

 

Fixed Assets  

Fixed Assets

19,883,400

18,342,870

16,802,340

15,261,810

13,721,280

12,180,750

Sub Total

19,883,400

18,342,870

16,802,340

15,261,810

13,721,280

12,180,750

 

 

Current Assets 

Debtors

-

44,280

47,304

50,544

54,016

57,737

Cash & Bank Balance

200,000

9,539,770

17,215,830

26,053,642

36,184,823

47,754,809

Sub Total

200,000

9,584,050

17,263,134

26,104,186

36,238,839

47,812,546

 

 

Total Assets

20,083,400

27,926,920

34,065,473

41,365,995

49,960,119

59,993,295

Cash Flow Statement

Cash Flow Statement

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Operating Profit

-

7,478,720

9,100,857

10,909,346

12,923,822

15,165,942

Add Depreciation

-

1,540,530

1,540,530

1,540,530

1,540,530

1,540,530

Capital

20,083,400

 

Other Source

 

Long Term Loan

-

-

-

-

-

-

Inc/Dec in Accrued Exp

-

364,800

29,184

31,519

34,040

36,763

Total

20,083,400

9,384,050

10,670,572

12,481,395

14,498,392

16,743,235

Applications

 

Fixed Assets

19,883,400

-

-

-

-

-

Long Term Loan

-

-

-

-

-

-

Payment Of

 

Financial Charges

-

-

-

-

-

-

Tax Paid

-

-

2,991,488

3,640,343

4,363,739

5,169,529

Inc/Dec in Current Assets

-

44,280

3,024

3,240

3,472

3,721

Total

19,883,400

44,280

2,994,512

3,643,583

4,367,211

5,173,250

Surplus

200,000

9,339,770

7,676,060

8,837,812

10,131,182

11,569,985

Opening Balance

-

200,000

9,539,770

17,215,830

26,053,642

36,184,823

Closing Balance

200,000

9,539,770

17,215,830

26,053,642

36,184,823

47,754,809

Payback Period & Internal Rate of Return

Payback Period & Internal Rate of Return

Year

Net Profit

Depreciation

Cash Flow

Net Cash Flow

NPV @ 26.42%

0

(20,083,400)

0

(20,083,400)

(20,083,400)

0

1

4,487,232

1,540,530

6,027,762

(14,055,638)

4,767,924

2

5,460,514

1,540,530

7,001,044

(7,054,594)

4,380,356

3

6,545,608

1,540,530

8,086,138

1,031,544

4,001,851

4

7,754,293

1,540,530

9,294,823

10,326,367

3,638,599

5

9,099,565

1,540,530

10,640,095

20,966,462

3,294,670

Σ

20,083,400

P.P [2] =

(Last Year With -ve Cash Flow)

+

(Absolute Value of Net Cash Flow in that Year)

(Total Cash Flow in the Following Year)

P.P =

2

+

7,054,594

8,086,138

P.P =

 

 

2.87

Years

 

IRR =

 

 

26.42%

 

 

Financial Calculation Notes

Annual Revenue Budget

Year

Annual Fee

Annual Rental of Stalls & SignBoards

Total

Gate & Parking

Park

0

0

0

0

0

1

4,080,000

18,000,000

492,000

22,572,000

2

4,412,520

19,845,000

525,600

24,783,120

3

4,772,140

21,879,113

561,600

27,212,853

4

5,161,070

24,121,722

600,178

29,882,969

5

5,581,697

26,594,198

641,524

32,817,419

–See notes in next Pages

Year wise Calculation of Gate & Parking

Average No. of visitors expected per day

500

No of working days in one year.

360

%age annual increase in no. of visitors.

3%

Annual increase in visitor entrance fee in %age.

5%

Visitors entrance fee in Rs.

20

Vehicle Parking fee in Rs.

20

Annual increase in vehicle parking fee in %age.

5%

% age of visitor visiting park by their own car

* It is assumed that one vehicle contains 3 people.

40%

Daily

Yearly

Yr

C.U [3] 

E.F [4] 

Vehicle parking fee

No of Visitor

No of Visitor with Own Car

No of Vehicles

Income from Entrance Fee

Income From Parking

Income from Entrance Fee

Income From Parking

Total

0

0

0

0

0

0

0

0

0

0

0

0

1

100%

20

20

500

200

67

10,000

1,333

3,600,000

480,000

4,080,000

2

100%

21

21

515

206

69

10,815

1,442

3,893,400

519,120

4,412,520

3

100%

22

22

530

212

71

11,696

1,560

4,210,712

561,428

4,772,140

4

100%

23

23

546

219

73

12,650

1,687

4,553,885

607,185

5,161,070

5

100%

24

24

563

225

75

13,681

1,824

4,925,027

656,670

5,581,697

Year wise Calculation of Entertainment Point Money

Average No. of visitors expected per day

500

%age annual increase in no. of visitors.

5%

Average fee for rides in Rs.

100

Annual increase in visitors’ entrance fee in %age.

5%

Daily

Yearly

Year

Capacity Utilization

No of Working Days

Volume of Visitors

Entrance Fee

Total

Total

0

0%

0

0

0

0

0

1

100%

360

500

100

50,000

18,000,000

2

100%

360

525

105

55,125

19,845,000

3

100%

360

551

110

60,775

21,879,113

4

100%

360

579

116

67,005

24,121,722

5

100%

360

608

122

73,873

26,594,198

Year wise Calculation of Food, Souvenir Stalls & Sign Boards Money

Total covered area of food service/souvenir stalls

500

Monthly average rentals per sft. in Rs.

50

Annual increase of monthly rentals in %age.

8%

Total area of sign board in sft.

400

Monthly rentals of Sign Boards in sft. in Rs.

40

Annual increase of monthly rentals in %age.

5%

Food/Souvenir stalls

Sign Boards

Year

Area in sft.

Monthly Rentals per sft.

Monthly Income

Yearly Income

Area in sft.

Monthly Rentals per sft.

Monthly Income

Yearly Income

Total

0

0

0

0

0

0

0

0

0

0

1

500

50

25,000

300,000

400

40

16,000

192,000

492,000

2

500

54

27,000

324,000

400

42

16,800

201,600

525,600

3

500

58

29,160

349,920

400

44

17,640

211,680

561,600

4

500

63

31,493

377,914

400

46

18,522

222,264

600,178

5

500

68

34,012

408,147

400

49

19,448

233,377

641,524

Notes for Tools, Equipment, Computer & Telephone

Tools, Equipments, Computers & Telephone

Description

Unit Cost in

Unit

Qty

Rs.

Total Cost

Tools

1

50,000

50,000

Equipments

1

100,000

100,000

Total of Tools & Equipments

150,000

Computers

Computers

Each

3

12,000

36,000

UPS

Each

3

25,000

75,000

Laser Printers

Each

1

9,000

9,000

Misc.

1

5,000

5,000

Total of Computers

125,000

Telephone

Telephone Exchange

Each

1

60,000

60,000

Telephone Sets

Each

10

700

7,000

Misc. Accessories & Wiring

1

5,000

5,000

Total of Telephone

72,000

Total

347,000

Notes for Vehicles, Furniture & Security System

Vehicles, Furniture & Security System

Description

Unit

Qty

Rs.

Total Cost

Vehicles

Carrier Van

Each

1

800,000

800,000

Total of Vehicles

800,000

Furniture

Executive Table with Side Racks & Chairs

Each

1

20,000

20,000

Working Table with Side Racks & Chairs

Each

4

10,000

40,000

Visitor Chairs for Executive

Each

8

1,500

12,000

Visitor Chairs

Each

8

800

6,400

Computer Table

Each

1

3,000

3,000

Computer Chairs

Each

1

3,000

3,000

File Cabinets

Each

1

5,000

5,000

Steel Safe

Each

1

15,000

15,000

Air Conditioners

Each

2

45,000

90,000

Refrigerators

Each

1

25,000

25,000

Total of Furniture

219,400

Security System

Public Address and Paging System

 

1

100,000

100,000

Total of Security System

100,000

Total

1,119,400

Notes for Direct Cost & Expenses

DIRECT COST & EXPENSES

Year

Power, Fuel & Water

Stores, Spares, Repair & Maint.

General Exp

Total

0

0

0

0

0

1

8,000,000

332,750

1,572,000

9,904,750

2

8,240,000

342,733

1,619,160

10,201,893

3

8,487,200

353,014

1,667,735

10,507,949

4

8,741,816

363,605

1,717,767

10,823,188

5

9,004,070

374,513

1,769,300

11,147,883

Notes for Salaries Expenses

Salaries Expenses

Year

Salaries & Benefits

Total

0

0

0

1

3,648,000

3,648,000

2

3,939,840

3,939,840

3

4,255,027

4,255,027

4

4,595,429

4,595,429

5

4,963,064

4,963,064

Notes for Annual Stores, Spares, Repair & Maintenance

Stores, Spares, Repair & Maintenance

Tools & Consumable

Description

Qty.

Unit Cost

Total

Entertainment Point

Tools

LS

100,000

100,000

Equipments

LS

100,000

100,000

Total

200,000

Annual Maintenance Cost of Building & Civil Works

 

 

 

 

 

 

Yearly

Total Maint.

Description

Capital Cost

Maint. Cost %age

Cost

Entertainment Point

7,928,000

0.75%

59,460

Total

7,928,000

 

59,460

Annual Maintenance Cost of Plant & Machinery

 

 

 

 

 

 

Yearly

Total Maint.

Description

Capital Cost

Maint. Cost %age

Cost

Joyland Park

6,180,000

0.75%

46,350

Total

6,180,000

 

46,350

Annual Maintenance Cost of Tools, Equipments, Computers & Telephone

Yearly

Total Maint.

Description

Capital Cost

Maint. Cost %age

Cost

Entertainment Point

347,000

2.00%

6,940

Total

347,000

6,940

Annual Maintenance Cost of Electric Installations

Yearly

Total Maint.

Description

Capital Cost

Maint. Cost %age

Cost

Entertainment Point

4,000,000

0.50%

20,000

Total

4,000,000

20,000

Total

332,750

Notes for General Expenses

General Expenses

Monthly

Annual

Description

Charges

Charges

Postage & Courier

2,000

24,000

Printing & Stationary

5,000

60,000

Fee & Subscription

8,000

96,000

Legal & Professional Charges

10,000

120,000

Entertainment

10,000

120,000

Staff Welfare

5,000

60,000

Travelling & conveyance

5,000

60,000

Vehicle & Equipment Running Expenses *

543,600

News papers & periodical

200

2,400

Publicity & advertisement

40,000

480,000

Safety Gears

500

6,000

1,572,000

* Vehicle & Equipment Running Expenses

Rate per Litter of Patrol in Rs.

75

Rate per Litter of Diesel in Rs.

76

Description

No.

Litters per Month

Amount

Carrier Van

1

300

270,000

Generators 200 KVA

1

300

273,600

Total Vehicle Cost of Component

543,600

Notes for Schedule of Depreciation

Schedule of Depreciation

Description

Cost

Rate in %age

Amount

Building & civil works

7,928,000

 

 

Contingencies

122,884

 

 

Sub Total

8,050,884

4%

322,035

Plant & Machinery

6,180,000

 

 

Contingencies

98,880

 

 

Sub Total

6,278,880

10%

627,888

Tool, Equipment, Computers & Telephone

347,000

 

 

Contingencies

5,379

 

 

Sub Total

352,379

20%

70,476

Electric Installation

4,000,000

 

 

Contingencies

64,000

 

 

Sub Total

4,064,000

10%

406,400

Vehicles, Furniture & Security System

1,119,400

 

 

Contingencies

17,910

 

 

Sub Total

1,137,310

10%

113,731

Total

19,883,453

 

1,540,530

Assumptions

Project Assumptions

Period of Construction in Years

1

Total Covered Area of Food Service/Souvenir Stalls in Sq. ft

500

Operating Assumptions

No of Working Days in One Year

360

Population of The Target Area in Millions

3

Expected %Age of Population Visiting Per Annum of Total

6%

Revenue Assumptions: Joy Rides

Average Duration of Rides in Minutes

3

Loading-Off Loading Time For Each Ride in Minutes

7

Total No. of Rides Per Hours

6

Virtual Capacity of The Entertainment Point/Day

3,528

Max. No. of Visitors Per Day At 30% of Virtual Capacity

1,058

Average No. of Visitors Expected Per Day

500

Average No. of Visitors Expected Per Annum

180,000

Estimated Percentage of Visitors Visiting Weekly

30%

Estimated Percentage of Visitors Visiting Yearly

10%

Estimated Percentage of Visitors Visiting Monthly

60%

Revenue Assumptions: Others

Monthly Average Rentals Per Sq. ft. In Rs.

50

Total Area of Signboard in Sq ft.

400

Monthly Rentals of Signboards in Sq ft. in Rs.

40

Visitors Entrance Fee in Rs.

20

Average Fee For Rides in Rs.

100

Vehicle Parking Fees in Rs.

20

Growth Rates

Annual Increase in Visitors’ Entrance Fee

5%

Annual Increase in Vehicle Parking Fee.

5%

%Age Annual Increase in No. of Visitors.

3%

Financial Assumptions

Annual Increment To The Employees in %Age

8%

Expected Increase in Electricity, Water & Gas

3%

Annual Increase in Consumable And Maintenance

3%

Annual Increase in General Expenses Cost Items

3%

Accrued Expense Every Year

10%

Debtor Increase by % of Revenue

9%

Annual Repair & maintenance Cost of Plant & Machinery

0.75%

Annual Increase in Repair & maintenance Cost of Plant & Machinery

3%

Depreciation Rate

Tools, Equipments, Computers & Telephones

20%

Electric Installations

10%

Vehicles, Furniture & Security System

10%

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