Project Report

(Submitted for the Degree of [Link]. Honours in Accounting & Finance

under the University of Calcutta)

Title of the Project

START UP PLAN FOR A BUSINESS

Submitted by
Name of the Candidate : TANYA SHAW
Registration No.
Name of the College : SHRI SHIKSHAYATAN COLLEGE
College Roll No. :171

Supervised by
Name of the Supervisor: SARMISTHA SAMANTA
Name of the College: SHRI SHIKSHAYATAN COLLEGE

Month & Year of Submission

FEBRUARY, 201
Annexure- IA
Supervisor's Certificate

This is to certify that Ms TANYA SHAW a student of [Link]. Honours in Accounting &
Finance of SHRI SHIKSHAYATAN COLLEGE under the University of Calcutta has worked
under my supervision and guidance for her Project Work and prepared a Project Report with the
title START UP PLAN FOR A BUSINESS which she is submitting, is her genuine and original
work to the best of my knowledge.

Signature
Place: KOLKATA Name: SARMISTHA SAMANTA
Date: Designation: LECTURER
Name of the College: SHRI SHIKSHAYATAN COLLEGE
Annexure- IB
Student's Declaration

I hereby declare that the Project Work with the title START UP PLAN FOR A BUSINESS
submitted by me for the partial fulfillment of the degree of [Link]. Honours in Accounting
& Finance under the University of Calcutta is my original work and has not been submitted
earlier to any other University /Institution for the fulfillment of the requirement for any
course of study.
I also declare that no chapter of this manuscript in whole or in part has been incorporated in
this report from any earlier work done by others or by me. However, extracts of any
literature which has been used for this report has been duly acknowledged providing details
of such literature in the references.

Signature
Name: TANYA SHAW
Address: 302,APC ROAD KOLKATA- 700009
Registration No.
Place: KOLKATA
Date:
CHAPTER-1

INTRODUCTION

1.1 Background
The topic I have chosen to work on is, Start up plan for a business. A startup business is
an entrepreneurial venture which is typically a newly emerged, fast-growing business that aims
to meet a marketplace need by developing or offering an innovative product, process or service.
A start up business plan is a written document that describes in detail how the new start up is
going to work and achieve its goals. A start up plan is a fundamental tool that any business plan
needs to have before beginning its operations. It consists of detailed description of the business,
its products or services and the goals of the business.

My father is engaged in the business of manufacturing & marketing of electrical fans. With his
vast experience and technical guidance, I have decided to commence a start up business of
manufacturing and assembling of electrical and solar fans. A solar fan is a mechanical fan
powered by solar panels. Although the solar fans were invented much earlier, they are still not
widely available in the Indian local markets.
1.2 Need/Justification

The reasons for choosing this topic have been briefly stated below :

 Real life use- This start up plan will be helpful for me in real life after I complete my
graduation. By working on this project, I will be able to identify the important areas of
the start up and figure out how to work on them.

 Growth factor- In this segment(ie. manufacturing fans), the growth rate is higher for the
companies which are emerging in this market and due to the growing needs of residential
and commercial properties which directly and indirectly increase the prospective
customer and demand for our entire product range.

 Saving electricity- By manufacturing solar fans, it will be then available in the local
markets which will enable people to save electricity.

 Reduction in global warming- Burning of fossil fuels to generate electricity produces

carbon dioxide(CO2) which leads to global warming. By the manufacture and usage of
solar fans, consumption of fossil fuels shall be eliminated, leading to a reduction in
climate change and global warming.

 Aid to family business- By commencing a business of manufacturing and assembling of

electrical and solar fans, it will help in the expansion of my father’s business.
1.3 Review of Literature

Although the decision related to become an entrepreneur or remain as a paid worker and
evidence on self-employment have been analyzed, the entrepreneurial objective and behavior are
less documented. An early literature defines the entrepreneur under three main aspects as
summed up in Langlois (2005, p. 4): "Kirzner is about discovery, about 2alertness to new
opportunities; Knight is about evaluation, about the faculty of judgment in economic
organization; and Schumpeter is of course about exploitation, about carrying out of the new
combinations and the creative destruction that often results there from".

But the definition of entrepreneurship has been spread to individuals who do not necessarily
respond to those criteria and whose objectives are limited to create their own jobs. In that sense,
some firms are and remain small (Poschke, 2008). Their creators/managers do not look for a
capitalist development and they do not want to become "empire builders".

Those points of view correspond to the notions of employer and non-employer in Davis et al.
(2008). This distinction and the heterogeneity of entrants involves that objectives are different
among entrepreneurs: some of them yearn for start-up high-growth businesses and others aspire
to more restrictive ambitions that is self-employment or micro-enterprises. This paper adopts the
French definition of the firm2 that includes firms with no paid worker and firms employing at
least one worker and thus catches employer and non-employer aspirations

. The entrepreneurial literature (Blanchflower, 1998; Blanchflower and Oswald, 1998)

generally focuses on the decision to enter entrepreneurship or to become/remain as a paid worker
and distinguishes entrepreneur-specific pro- files. Key determinants to become entrepreneurs
have been emphasized: occupational qualifications, family resources, gender, work environment
(Berglann, 2009) and entrepreneurial network (Djankov et al., 2005).

Dawson et al. (2009, p. 12) suggest that "motivations that might be considered to choose to
become self-employed are: the need for self-expression, for independence, for status, or for
pecuniary advantage. There are significant differences between different types within the self-
employed in terms of gender, ethnicity, educational attainment and housing tenure status". Those
factors and profiles have been rarely studied in relation to entrepreneurial objectives themselves
while entrepreneurs present different aspirations. Consequently, personal characteristics may
have an influence on their objectives. Among those characteristics, human capital has been
received a great deal of attention.

Models of occupational choice (Lazear, 2003; Poschke, 2008) study the individual decision to
enter entrepreneurship or become/remain as a paid worker and isolate human capital, in
particular education, as a key factor to enter entrepreneurship: multi-skilled people are more
likely to become entrepreneurs than single skilled people and "a self-employed person needs not
have any other employees and the kinds and combinations of skills that are necessary for real
entrepreneurship are less important for, say, a self-employed handyman who works alone"
(Lazear, 2003, p. 3). Thus the level of human capital and the decision to become entrepreneur or
self-employed, that is individual objectives, are correlated; the relation between education and
entrepreneurship is U-shaped that is the most and the least educated people are more likely to
start a business (Poschke, 2008). This statement assumes that education plays a role in the
decision to enter entrepreneurship. Education and the number of skills influence individual
entrepreneurial aspirations.
1.4 Objectives

The objectives of this start up business plan are stated as follows :

 To make solar fans available in the local markets.

 To make our brand available in sub-urban areas.

 To attract a minimum of fifty customers per day in the first year of operation.

 To offer our customers excellent product quality and services at a reasonable price.

 To generate positive cash flow from operations and at least 10% net profits to sales.

 To strive to meet and exceed customer’s expectation so as to ensure a sustainable

business relationship.
1.5 Methodology

Research methodology is a set of various methods used to collect information and data for the
purpose of making business decisions.

Through this research we will be able to identify the appropriate suppliers for our business which
shall be in accordance with our requirements.

Area of study- The research was conducted in Kolkata, West Bengal.

Sample Technique-Random Sampling

Sample Size- Data was collected from a sample size of 50 suppliers.

Research instrument- Structured Questionnaire

Type of study- The following sources were used for data collection :

 Primary Source- Primary data is the data collected by the researcher themselves through
interviews, observations, action research, questionnaires etc.
 Secondary Source- Secondary sources are data that already exist ie. previous research,
official statistics, government reports, web information etc.

Tools for data collection- The primary data was collected by means of a survey. A questionnaire
was prepared and various suppliers were approached to fill them up. The questionnaire consists
of 10 questions which comprises of different aspects of the business. Secondary data were
collected from several articles from search engines like Google, Yahoo and [Link].

Method of analysis- The response from the suppliers were later analyzed and interpreted through
various bar graphs, pie charts, line graphs and venn diagrams.
1.6 Limitations of the study

The following limitations were discovered during the course of study :

 The time period for the submission of the project was not sufficient to study all the
factors in details.

 Visiting various places for the research consumed a lot of time.

 The sample taken for research is confined only to a specific location ie. Kolkata.

 The sample size is limited only to 50 suppliers.

 Many suppliers were reluctant to provide information and did not cooperate.

 The cost structure prepared is a budgeted cost sheet. The actual figures may differ.
CHAPTER- 2

CONCEPTUAL FRAMEWORK /NATIONAL /INTERNATIONAL

SCENARIO
2.1 National Scenario

India is a tropical country and thus fans are necessary. Therefore the Fan industry in India is
well-established and has grown significantly over the years. The fan market in India consists of
ceiling fans (which have dominant share), table fans, pedestal fans, wall fans and exhaust fans
and manufacture special purpose fans for industrial applications. The Indian market is estimated
at 2.5 million fans per month and it is growing at about10% per annum. India has large number
of manufacturing plants located across the country and producing world class fans. In fact the
export of fans from India has doubled in the last few years and are a testimony to the quality and
development of the Indian fan Industry. The distribution of fans in India is also well developed
with over 1,00,000 selling points for fans, across the country covering towns right up to the 5th
population.
Electric Fans is a high market penetration product category and is very high in terms of purchase
priority amongst durables. It is a matured product category with a stagnant growth rate from the
time of 1990s. The domestic market size of fans in India is around 20 Million units. The share of
the organized sector stands at 45 per cent and of the unorganized sector at 55 per cent. The
figures were exactly the opposite in the early Nineties. Low technology manufacturing process,
quality norms, lower overheads and tax evasion methods have enabled the un-organized sector to
gain larger share of the market by ensuring a significant price difference. The local/unorganized
brands are quite appealing to a large section of the price-conscious Indian consumers, for their
lower price points. The organized sector is dominated by national brands that have built their
brand image over a period of time, through sustained advertising and a good dealer network. The
market size in value terms of the fans category is quite large at around Rs.1500 crore and it is the
largest selling item in the brown goods category. All large players in the industry have their own
manufacturing facilities, which is helping them in reaping the benefits of economies of scale.
Intense competition in the market has transformed the fan industry into a high-volume, low-
margin business. To remain profitable and competitive, it becomes imperative to have high-
volumes and a reasonable market-share, to enjoy the related economies of scale. With
liberalization of imports, low cost world-class manufacturers of Table, Pedestal and Wall fans
from China offer an active threat to Indian manufacturers.

Market Segmentation

The fans market is segmented based on price, quality and aesthetics. The Fan industry has the
following Product based segmentation and shares: Ceiling Fans - 70 percent Table/ Wall /
Pedestal (TPW) Fans - 20 per cent Fresh air Fans - 10 percent.

10% 20%
TPW
Fans
Ceiling
Fans
70%
2.2 Major Players in the Market

 Marshal FAN MARKET OF KOLKATA

 Toofan
 SEC Nova
Polycab
 Barsha 15% Marshall
Toofan
 Polycab 12% SEC Nova
49%
Barsha
Others
10%

6% 8%

2.3 Strategies to Overcome Competitors

 Low pricing- Giving higher margin to our dealers for their motivation
 Strong advertisements
 Organizing dealer meets and felicitating them for good performance
 Distributors- Two distributors in one region
 Better credit policies
 Product quality- Providing high quality products
 Providing low electricity consuming goods
 Rendering after sales services
 Ensuring long term sustainability and low maintenance costs

CHAPTER-3
ANALYSIS AND FINDINGS
3.1 Company Description
Name of the enterprise : H.L Engineering Corporation

Name of the brand: Hilson

Name of the owners : Mr. Chandragupta Shaw

Ms. Tanya Shaw

Mission and vision : We aim at bringing greater happiness to our customers

by improving their quality of life, while enhancing stakeholder value.

3.2 Products
H.L Engineering Corporation shall deal with the manufacturing and assembling of electric and
solar fans. The product mix of the firm are as follows :

 Ceiling fans
 Portable fans
 Table fans
 Pedestal fans
 Exhaust fans
 Wall fans

3.3 Marketing plan and

strategies
Societal marketing
  Providing economical products for the people of the society
 Providing products that consume less electricity
 Providing products that are user friendly and portable
 Providing solar fans for an eco friendly environment

Product strategy

 Launching high quality decorative fans

 Launching basic products for sub-economy segment

Pricing strategy

 Launching differentiated models aimed at the lower price segment

 Introducing sub economy fans at the price range of Rs.800

Packaging and promotion

 Publicity through campaigns

 Circulating attractive posters
 Providing themes to cartons
 Mass advertising
3.4Distribution channel

Dealers and distribution play a major role in serving customers, while growing and
sustaining markets. H.L Engineering Corporation shall follow the indirect distribution
channel.

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3.6 Market Segmentation

 Market segmentation is the marketing process in of dividing a market into distinct subsets
(segments) that behave in the same way or have similar needs.

TARGET SEGMENT

 Business Class
 Higher Income Class
 Higher Middle Class

DEMOGRAPHIC SEGMENTATION
 It’s for all age group.
 Income – low, middle & high end consumer
 Occupation – all types of working and non-working people

GEOGRAPHIC SEGMENTATION
 Metropolitan Cities, major cities of the states, and towns.
 Density of Area: Urban, Sub-urban, Rural

3.7Product Decisions
FEATURES

Features of all the Hilson fans are different. Some of the prominent features are as follows

 Cost effective
 Large variety
 Less power consumption
 Nice all round performance
 Strong regulators
 Effective air movement to suit exact requirement for ventilation
 Low temperature rise leading to longer bearing life
 Specially designed blades for better performance and non-overloading characteristics
 Stable speed voltage motor characteristics leading to excellent low voltage performance
 Designed to comply with abnormal test conditions as per international safety standards
 Higher Air Delivery Power Ratio (ADPR) for ultimate performance.

PRODUCT LIFE CYCLE

Our product lies in introduction stage

 Slow sales
 Products are non existent
 Heavy expenses incurred with product
introduction
 High costs per customer
 Profits are negative
 Less competitors
 Customers are innovative
3.8Data Analysis

[Link] of commencement of business

 [Link] YEARS IN MARKET FREQUENCY

0-3 6

3-8 14

8-15 21

15 Above 9

INTERPRETATION

This is aimed at analyzing the number of years the firm has been operating in the market. The
highest responses have been attributed to the time period of 8-15 years consisting of 21 firms.
Whereas only 6 firms fall in the category of 0-3 years. Thus, we can conclude that maximum
number of firms are well acquainted with the market.

[Link] production capacity

NO. OF UNITS FREQUENCY

500-1000 8

1000-5000 11

5000-8000 19

8000 Above 12
 DAILY PRODUCTION
20
18
16
F 14
r
e 12
10 19
q FREQUENCY
u 8
e 11 12
6
n 8
4
c
y 2
0

500-1000 1000- 5000- 8000

5000 8000 Above
Daily production capacity

INTERPRETATION

This is aimed at understanding the daily production capacity of the firms to ascertain whether
they would be able to meet our requirements or not. It is seen that 12 firms have daily production
capacity above 8000 units whereas maximum number of firms(19) have a daily production
between 5000-8000 units Thus ,we can say that firms with higher production per day shall be
able to dispatch our orders earlier than firms with lower production capacity per day.

[Link] turnover

ANNUAL TURNOVER FREQUENCY

(In Rupees)
 Up to 5,00,000 4

5,00,000-10,00,000 12

10,00,000-20,00,000 18

Above 20,00,000 16

INTERPRETATION

From the above pie chart we can analyze that out of 50 respondents, the annual turnover of only
4 firms are up to Rs.5,00,000 while the maximum number of firms (18) have an annual turnover
above Rs.20,00,[Link] annual turnover of 12 firms fall between RS.5,00,000-10,00,000 and 16
firms have an annual turnover ranging between Rs.10,00,000-20,00,[Link] with higher
turnover reflect profitability and active trading which is a key factor in the selection of the
supplier

MATERIALS FREQUENCY [Link] of

materials/items
Winding wires and cables 17

Fastners(nuts, bolts and screws) 15

Table fan stand and blades 10

Speed controller 8
 CATEGORY OF MATERIALS

8 Winding wires and cables

Fastners(nuts, bolts and
17 screws)
Table fan stand and blades
10 Speed controller

15

INTERPRETATION

It is important to know the category of materials provided by the supplier so as to obtain the type
and source of each raw material needed for production. According to the survey, maximum
suppliers provide winding wires and cables which comprises of 17 suppliers. Out of 50 suppliers,
15 of them provide fastners (nuts, bolts and screws), 10 provide table fan stand and blades while
only 8 of them provide electronic speed controllers.

[Link] and maximum delivery period

 DELIVERY PERIOD FREQUENCY

2-3 Weeks 8

3-5 Weeks 26

4-6 Weeks 12

Above 6 weeks 4

DELIVERY PERIOD
30

25

F 20
r
e Series1
q 15
u 26
e
n 10
c
y 12
5
8
4
0 0
DELIVERY 2-3 Weeks 3-5 Weeks 4-6 Weeks Above 6 weeks
PERIOD

INTERPRETATION

This is aimed at understanding the minimum and maximum delivery period of each supplier
which one of the major concerns for selection of suppliers for raw materials. Suppliers with
shorter span of delivery period are preferred to suppliers with higher span of delivery period as
they can meet emergency requirements of raw materials. Out of 50 suppliers, maximum
suppliers(ie.26) take 3-5 weeks for delivery of materials while only 4 of them take above 6
weeks.

[Link] with ISO Standards

 ANSWER FREQUENCY

Yes 34

NO 16

COMPLIANCE WITH ISO STANDARDS

A
n NO 16
s
w
e FREQUENCY
r

Yes 34

0 5 10 15 20 25 30 35 40
Frequency

INTERPRETATION

From the above bar chart we can see that 34 firms out of 50 comply with the ISO(International
Organization for Standardization) Standards while 16 firms do not comply with them. It is
known that the firms which comply with the ISO Standards have products which are safe,
reliable and of good quality. It also ensures increased productivity and minimization of wastes.
Therefore, it is essential to choose a supplier which complies with the ISO Standards.

[Link] of quality control(QC) and quality assurance(QA) unit

 ANSWER FREQUENCY

Yes 28

NO 22

EXISTENCE OF QC AND QA UNITS

Yes

22 NO
28

INTERPRETATION

Quality control(QC) unit ensures that a manufactured product or performed service adheres to a
defined set of quality criteria or meets the requirements of the client or customer. "Quality
assurance (QA) is a way of preventing mistakes or defects in manufactured products and
avoiding problems when delivering solutions or services to customers; which ISO 9000 defines
as "part of quality management focused on providing confidence that quality requirements will
be fulfilled”. From the above pie chart it is evident that out of 50 firms, 28 firms have QC and
QA units which implies that they have a standard quality of product and are preferable to firms
which do not have QC and QA units.
[Link] of materials prior to delivery

ANSWER FREQUENCY

Yes 17

NO 33

INSPECTION PRIOR TO DELIVERY

35

F 30
r
e 25
q
u 20
e FREQUENCY
n 15 33
c 10
y 17
5
0
Yes NO

Answer

INTERPRETATION

It is important to know whether the supplier provides inspection of materials prior to delivery or
not. This is because the customer can satisfy himself whether the materials are in accordance to
the specifications or not. Also the correct quantity and quality of materials shall be verified.
Inspection of materials prior to delivery shall also help in identifying any defects. Out of 50
suppliers, only 17 of them provide inspection of materials prior to delivery while 33 suppliers do
not provide such inspection. Therefore, it is preferable to select those suppliers who provide such
inspection.
. [Link] facility to customers

ANSWER FREQUENCY

Yes 31

NO 19

CREDIT FACILITY TO CUSTOMERS

F 35
r
e 30
q 31
u 25
e
n 20
c 19 FREQUENCY
y 15
10
5
0
Yes NO
Answer

INTERPRETATION

Convenience in purchase of goods though credit enables the customers to purchase ahead of his
ability. Through availability of credit, new business enterprises came into existence using their
abilities effectively. From the above graph, we can see that 31 suppliers out of 50 provide credit
facility to customers while 19 of them do not provide such facility.
[Link] major brands

BRAND NAME FREQUENCY

Usha 8

Havells 10

Khaitan 13

Bajaj 19

khaitan
3

10

Bajaj Usha
9 3
5

Havells
5

INTERPRETATION

This is aimed at identifying the major competitors of the firm in the market. As shown in the
venn-diagram, 8 suppliers supply to Usha, 10 supply to Havells, 19 supply to Bajaj and 13 of
them supply to Khaitan. It is also seen that 10 suppliers supply to both Bajaj and Khaitan and 5
of them supply to both Usha and Havells.
3.9 Cost Structure

Project : Solar Fans (Table

Mounted Type)

Cost Analysis

12 VOLT BRUSHLESS DC
MOTOR ASSEMBLY :

NAME OF ITEMS QUANTITY RATE AMOUNT

MOTOR COVERS (M.S.) 1 PAIR 43.00 43.00

BUSH / SLEEVES (BRASS
SINTERED) 2 NOS. 8.00 16.00

FELT 2 NOS. 0.35 0.70

ARMATURE CORE (CRNO
GRADE) 1 NO. 39.15 39.15
PERMANENT MAGNET
(STATOR) 4 NOS 42.00 168.00
SUPER ENAMELLED COPPER
WINDING WIRE 0.115 KG 580.00 66.70
NUT, SCREW & WASHERS
(FASTNERS) 1 SET 2.80 2.80

SPACERS 1 PAIR 0.75 0.75

LOOP CABLE 1 NO. 4.50 4.50

M.S. SHAFT (EN-31 GRADE) 1 NO. 12.80 12.80

OSCILLATING GEAR BOX 1 NO. 32.25 32.25

OSCILLATING LINK STRIP 1 NO. 4.50 4.50

 PIVOT 1 NO. 3.00 3.00

PIVOT PIN 1 NO. 9.40 9.40

HINGE PIN 1 NO. 6.75 6.75

MOTOR OUTER COVERS
(POLYPROPYLENE) 1 SET 19.00 19.00

TERMINAL CONNECTOR 1 NO. 3.40 3.40

GEAR KNOB 1 NO. 1.80 1.80

TOTAL OF MOTOR
ASSEMBLY 434.50

TABLE FAN STAND

ASSEMBLY :

NAME OF ITEMS QUANTITY RATE AMOUNT

TABLE FAN STAND 1 SET 95.00

NAME PLATE 1 NO. 6.00

SWITCH 1 NO. 18.50

ELECTRONIC SPEED
CONTROLLER 1 NO. 145.00

BUFFER 4 NOS. 1.00

MAIN POWER CABLE WITH
PLUG 1 NO. 13.00
NUT, BOLT, SCREW &
WASHERS (FASTNERS) 1 SET 6.40

GUARD SHOW 1 NO. 4.30

POLY WRAP 1 NO. 3.00

 OUTER GUARD RING 1 NO. 5.00

GUARD 1 SET 75.00

BLADE / PROPELLER 1 NO. 65.00

LOCKNUT FOR BLADE 1 NO. 4.00

PACKING BOX 1 NO. 23.00

WARRANTY CARD 1 NO. 1.50

INSTALLATION & OPERATING
MANUAL 1 NO. 3.50
SILICA GEL SACHET
(DESICCANT) 1 NO. 2.15

MASTER PACKING 1 NO. 12.50

TOTAL TABLE FAN STAND
ASSEMBLY 483.85

COST OF BLDC MOTOR

ASSEMBLY 434.50

GRAND TOTAL 918.35

PROFIT

SUB TOTAL
 RATE PER UNIT AMOUNT

RAW MATERIALS 949.35

LABOUR COST

FOR WINDING OF ARMATURE 12

FOR MOTOR ASSEMBLY 10

FOR TABLE FAN STAND
ASSEMBLY 17

FOR PACKING 3

DELIVERY COST 10
TOTAL LABOUR COST PER
UNIT 52
VARIABLE OVERHEAD
CALCULATION :

COST OF SALES

INSURANCE 2000

WAREHOUSING 12000

PROFESSIONAL FEES

TRADEMARKS 15000

LEGAL EXPENSES 5000

NON-DISCLOSURE
AGREEMENTS

LICENCES 2500

TECHNOLOGY COST

COMPUTER 120000

LOGO/BRAND DESIGN 3500

WEBSITE/DOMAIN 5000

INTERNET 805
 TELEPHONE 1034

ADMINISTRATIVE EXPENSES

ACCOUNTING STAFF WAGES 26000 26000

OFFICE EQUIPMENTS 350000

AUDITOR'S FEES 12000

OFFICE UTILITIES 2000

ADVERTISING AND
MARKETING COST

MARKETING MATERIAL 1500

BROCHURE PRINTING 150000

BILLBOARD ADVERTISING 2000

SALES PROMOTION 5000

FIXED OVERHEAD
CALCULATION:

NIL
DEPRECIATION ON FACTORY
EQUIPMENT
DEPRECIATION ON OFFICE
EQUIPMENT
QUALITY CONTROL
SUPERVISOR 12500

POWER 7500

INTEREST ON BANK LOAN

CAPITAL COST
 MANUFACTURING
MACHINERIES(Note1) 827000

FACTORY EQUIPMENT(Note2) 19000

INSTALLATION OF
MACHINERIES 45000

TOOLS AND TACKLES(Note3) 25300

Note 1-Manufacturing
Machineries :

LATHE 125000

DRILL 72000
AUTOMATIC ARMATURE
WINDING MACHINE 350000

HYDRAULIC PRESS MACHINE 130000

CONTROL PANEL BOARD 150000

Total
827000

Note 2-Factory Equipment :

HAND TROLLEY 2NOS @ 2500/- 5000

 MOVABLE BIN FOR ARMATURE 14000

Total 19000

Note 3-Tools And Tackles :

ANEMOMETER 12000
STROBOSCOPE 7500
HIGH VOLTAGE TESTING MACHINE 5800

Total
25300

Note 4- rent on factory building is

rs25000 which is an opportunity
cost as I’m using my father’s
factory