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MANAGING FINANCE
(Capital Budget Proposal for New Day Room)

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MANAGING FINANCE
(Capital Budget Proposal for New Day Room)

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TABLE OF CONTENTS PAGE.NO. EXECUTIVE SUMMARY.. .04 ABSTRACT .04 BACKGROUND 04 LIST OF TABLES/FIGURES/APPENDICES .04 INTRODUCTION ....05 THE ASSUMPTIONS ON CALCULATIONS..... .05 TASK1 .....0 DETAILED BUDGET SHO!ING THE COSTS AND CASH FLO!S. ..0 "1.A# BUDGET DETAILS FOR RENOVATION AND E$UIPPING STANDARD DAY ROOM E$UIPMENTS..0 "1.B# BUDGET DETAILS FOR BUILD NE! EXTENSION AND E$UIPPING STANDARD DAY ROOM E$UIPMENTS 0% "11#E CPA GUIDE LINES AND TAX CONSIDERATIONS0% TASK& ..0' "&.1# CRITICALLY EVALUATION OF BOTH PRO(ECTS USING APPRAISAL TECHNI$UES0' DECISION RULES .0) "&.11# SOURCES OF FUNDING THE PRO(ECT AND RATIO ON CASH FLO! AND CAPITAL EXPENDITURE.....10 TASK* ..10 "*.1# VIABILITY OF THE PRO(ECT BY USING STRATEGIC MANAGEMENT DECISION TOOLS...11 S!OT ANALYSIS... 1*

4
"*.&# CAPITAL PRO(ECT PROPOSAL IN STANDARD FORMAT14 CONCLUSION 14 REFERENCES . .. ...14 APPENDICES ..14-*4

Executive Summary
This report executed an analysis and evaluation of profitability, liquidity and financial stability of the proposed investment project by the help of predicted financial reports, besides that it analyzed comparison of both renovation and new build projects by different investment appraisal techniques such as !!"#!!"$%&"%# and %ay 'ac( %eriod" The result shows that invest with renovation project and avail the )overnment )rand as sources of fund and it recommended to mana)ement" This report also investi)ated the limitations of analysis conducted* li(ewise the proposal used industry standards and predicted financial reports for decision ma(in)"

Abstract
This analysis has been made a lot of research to financial data in health and social care sector, cost and expenditure analysis in social care projects, +", construction industry standards and relevant taxations in construction industry and health care industry" This paper focused to find which project, such as renovation or new construction is viable to investment purpose" The (ey findin)s were to invest in the renovation project, besides that it finds to opt )overnment )rand as sources of fund"

Background
The local community required to develop a day room from two different options such as .a/ renovation of an existin) buildin) which is in a poor state of repair and .b/ construction of a new extension" The new day room occupies about 1- m by 20 m .300 square meters/ with standard fittin)s and copes up with best value and 1% )uidelines" 2n these circumstances, the local community requested to prepare a project proposal"

List of Tables/Figures/Appendices
ppendice31 4 brea(down of a build bud)et cost ppendice32 4 individual cost brea( chart ppendice33 4 +",3 'uildin) cost m2 of internal area ppendice34 4 individual cost and percenta)e brea( with estimated renovation cost ppendice3- 4 list of equipments and stoc( for day room operations ppendice35 4 start3up expenses and source of fund for new construction of day room ppendice36 4 start3up expenses and source of fund for renovation of day room ppendice37 4 cash receipts for 8ay room ppendice39 4 salary expenses for day room ppendice310 4 %rojected #ncome statement for 12 months of day room ppendice311 4 predicted balance sheet for 12 months ppendice312 4 start up expenses and cash flow for first half year ppendice313 4 cash flow for second half of the year ppendice314 4 cash flow statement considered an increase -: net flow for - years" ppendice31- 3 cash inflow and outflow with percenta)e increase yearly ppendice315 4 #!! calculation for $ew 1onstruction ppendice316 4 #!! calculation for renovation ppendice317 4 $%& calculation for $ew 1onstruction ppendice319 4 $%& calculation for renovation

Introduction
;ana)in) finance consists of plannin), or)anizin), directin) and controllin) of financial activities li(e procurement and utilization of funds of an or)anization, such as applyin) the )eneral mana)ement principles to finance resources of the or)anization" The scope of the financial mana)ement includes #nvestment 8ecision, such as capital bud)etin), investment in current assets or wor(in) capital decisions, besides that <inancial 8ecisions consists of raise funds from different resources which depended on type of source, period of financin) and cost and return of the financin)" The 8ividend 8ecisions closely related with the net profit distribution and it divided into dividend for share holders" The dividend and the rate of dividend decision, further more amount of retained profit, it depend expansion and diversification plans of the or)anization" The objective of financial mana)ement is to ensure the re)ular supply of fund to the or)anization and confirm adequate returns to the share holders and it depends on the earnin) power, mar(et price of the share and shareholders= expectations" #n addition it confirms the optimum funds utilization of the procured fund in maximum possible ways and ensures the safety of the investment and maintains balance between debt and equity capital" The functions of the financial mana)ement are estimation of capital requirements, it depends the expected costs and profits, future pro)rams and policies of an or)anization" The capital

5 composition functions decides the capital structure such as short and lon) term debt equity analysis and it closely concerned with the portion of equity capital and additional funds raised from outside sources" The choice of sources of additional funds to be procured closely depends on various methods such as issuance of shares and debentures, loans from financial institutions and public deposits" The investment of funds means to invest into profitable ventures" The disposal of surplus concerned with dividend declaration and retained profits and ;ana)ement of 1ash concerned with overheads and payment to creditors, meetin) current liabilities, maintain ri)ht stoc(" <inally the financial control consists of plan, procure and utilize the fund and maintain control over finance by ratio analysis, financial analysis and cost and profit control" .;ana)ement study )uide/

The assumptions on calculations

The total area to be constructed is 1- m x 20 m, that is 3229"16 square feet or 300 square meters .m2/" The standard m2 buildin) cost in +", for day centre is +>? 2-45 in 2011, therefore the m2 buildin) cost for day centre in 2013 considered as @ 1600" There fore the total cost of buildin) the new day room is 300m2 x @ 1600 A@ -10,000" The day room furnished with standard equipments and the income )eneratin) points are coffee bar, internet, massa)in) chair, outpatients and visitor=s cafB, convenience store and )ift shop" The construction cost and renovation cost should be differ and the operations in both case should be same"

TASK-1 (1) etailed budget sho!ing the costs and cash flo!s
The construction cost estimated for new buildin) is C'%3-10,000 and renovation cost C'%3 276,540 . ppendice34/" The furnishin) of day room costs C'%3100,000 even if it is newly built or renovated . ppendice34/" The newly constructed day room required a total C'% 570,000 . ppendice35/, out of that C'%3160,000 for operation" The start up expenses used for capital equipment, location administration, openin) inventory, and promotion expenses other miscellaneous expenses, contin)ency fund and wor(in) capital . ppendice35/" The cash inflows )enerated from coffee bar, internet services, massa)in) chair, out patient and visitor=s cafB, convenience store and )ift shop . ppendice37/" #t is estimated a yearly revenue of C'%3 1,395,700 with a profit mar)in of 20: such as C'%3296,350 . ppendice3 7/"The salary expenses for day room estimated C'%3112,320 yearly . ppendice39/" The proposed day room yearly revenue estimated C'%31,395,700 and out of that --"10: as cost of )oods sold as C'%3 659,535"70 and other expenses 29"7-: such as C'%3210,944"70" The yearly depreciation char)es considered as 20: only for equipments and buildin) depreciation not considered" Therefore C'%3 1-,500 considered and made adjusted operatin)

6 profit 27"63:" Therefore the operatin) profit before finance char)es is C'%3 401, 344"70" The financial cost calculated at 12: such as C'%371,500, it result in a profit before taxation of C'%3319,644"70" The tax rate ta(en as 2-: of profit before taxation, such as C'%3 69, 935"20, therefore the predicted profit of first fiscal year endin) is 16"16:, such as C'%3 239,707"50, . ppendices3 10/"

(1"a) #udget details for reno$ation and e%uipping standard da& room e%uipments
The old buildin) required to renovate has been inspected and evaluated by the construction industry specialists and evaluated the required percenta)e of renovation cost . ppendice31/ and submitted and estimated cost of C'%3276,540. ppendice36/" The operations expenses remain the same as both renovation and new construction" The renovation cost is -5"4: of new construction cost of C'%3 276,540 . ppendice34/" The furnishin) and stoc( items for operations in both case remains same, therefore the estimated cost for equippin) the day room is C'%310000 and the total cost to implement the renovation and operation of the project day room is C'%345-,000" The fund is supposed to )enerate as a )overnment )rand" The fund utilized for renovation, capital equipment, location and administration fees, openin) inventory, advertisin) and promotion expenses, miscellaneous expenses, contin)ency fund and wor(in) capital . ppendice36/"

(1"b) #udget details for build ne! e'tension and e%uipping standard da& room e%uipments
The new build of day room cost C'%3-10,000, such as +", construction industry cost per m2 is C'%31600 and for 300 m2 cost it as it . ppendice33/" The furnishin) and stoc( procurement remains the same as C'%3100,000 for both cases and the total cost of new build day room project is C'%3572,000 with the other utilization heads mentioned for renovation"

(11)( )*A guide lines and ta' considerations

The new construction and renovation of the old buildin) estimated and planned under existin) rules and re)ulations effected under +", taxation laws, besides that considered the relevant 1onstruction %roducts !e)ulation 20111 .1%!/, that come in action as mandatory from 1st Duly 2013 onwards, the re)ulation demands manufacturers to apply 1E mar(in) and it covered a European >tandard and or European Technical ssessment" The taxation re)ulation 20111 imposes a 10: increase in particular construction materials to help the >;E manufacturin) base and 10: increase in the !F8 credit to)ether with 10: tax on profits from patents and cut to the corporate tax rate"

TASK-+" (+"1) criticall& e$aluation of both pro,ects using appraisal techni%ues

The accountin) analysis reveals the stability, viability and profitability of the or)anization" #t consider and compare past performance, future performance and competitive performance and disclose the solvency, profitability, liquidity and stability, besides that the project appraisal techniques are important to evaluate the investment opportunities to understand and determine which project )enerate reasonable return to the prime sta(eholders, The common tools used to determine the decision are non discounted cash flows and discounted cash flows, besides that the traditional methods are pay bac( period and accountin) rate of return"

7 The $%& consider the time value of money and it depend forecasted cash flows and opportunity cost of capital" The earnin) based measures are !!, $%& and #!! and ris( based measures are pay bac( period , )earin), brea( even points and sensitivity of estimated taxation, inflation and capital rationin).Table31/" Table31 Earnin) 'ased ;easures 1 !! 2 $%& 3 #!! !is( 'ased ;easures 1 2 3 4 %ay 'ac( %eriod Cearin) 'E% >ensitivity of estimated.a/Taxation.b/#nflation.c/1apital !ationin)

The $et %resent &alue calculated for both new construction and renovation by a cost of capital of 12: .Table32/ Table32
C+,-./01.2+ , Net cash flow - '0:000 &*)'0' &51%)' & 4*'' &%% 0% &)14'%

Y35 / 0 1 & * 4 5

C+-. +6 1572.58 1&9 1.0000 0.')*0 0.%)%0 0.%1&0 0. * 0 0.5 %0 NPV Avera e a!!"al #rof$t

NPV " '0:000.00# &14:14'.54 &00: '*.01 1'':&44.4' 1% :55'.05 1 5:&%*.1* )44: )0%.&14' 1'':)'1.44

R3,+45.2+, Net cash flow -4 5:000 &*)'0' &51%)' & 4*'' &%% 0% &)14'%

C+-. +6 1572.58 1&9 1.0000 0.')*0 0.%)%0 0.%1&0 0. * 0 0.5 %0 NPV Avera e a!!"al #rof$t

NPV (465,000.00) 214,148.54 200,683.01 188,244.48 176,558.05 165,273.13 944,907.21 188,981.44

!! A vera)e nnual %rofitG1apital #nvested x 100 -e! )onstruction !! A 177,971"44G570000 x 100 A 0"2669 x100 A 26"69 .eno$ation !! A 177971"44 G 45-000 H100 A 0"4054 H 100 A 40"541

ecision .ules
Ihen multiples projects appraisals the !!3 decision rule is accept the hi)her !! and when considerin) #!! 4 the investment is acceptable if the #!! is equal to or hi)her than predetermined tar)et rate and here in renovation project shows a hi)her percenta)e than the new construction" The project investment is accepted if the $%& is zero or above " The pay bac( period is calculated by dividin) the initial investment by annual cash flow and the decision is select the project which paybac( within the desired time period or fastest paybac(" The summary of the appraisal result shown in Table33 Table33 ppraisal Techniques #!! $%& %rofitability #ndex .%#/ %ay 'ac( %eriod !! $ew 1onstruction 3-"-9: -01926"76 1"64 4 Jears 26"69 !enovation -6"23: 615926"76 2"-4 3 Jears 40"54

The comparison shows that the renovation project has an #!! percenta)e, $%& value, %#,
and !! is )rater than new construction project, besides that the %ay 'ac( %eriod is lesser than the new construction project and it is recommended the option of renovation"

(+"11) Sources of funding the pro,ect and ratio on cash flo! and capital e'penditure
The (ey sources of finance in an or)anizational context , it can be )enerate from internal sources or external sources" #t depends up on the nature of the or)anization" The finance may own money, ownership capital or non ownership capital" The internal source may own money, sale of personal property or use of retained profit, sale of assets and lease bac(, cheque discountin), wor(in) capital arran)ement" The ownership capital may ordinary shares or preference shares" The non ownership capital is debentures, bonds, ban( loans, overdraft, hire3purchase, leasin), trade credit, venture capital, factorin) or franchisin)" The cost of capital and ownership may differ in each case" . ppendice320/ The accountin) analysis reveals the stability, viability and profitability of the or)anization or supposed to invest the projects proposal, it can compare to past performance, future performance, comparative performance" The historical or predicted financial statement analysis reveals the solvency, profitability, liquidity and stability" The healthcare industry is one of the increased opportunities providin) industry in +", and the industry standard shows shows a favorable past performance" The predicted financial data shows a favorable position and the predicted income statement of the proposed project shows a net profit of C'%3239707"50 . ppendice310/ and total current assets C'%3 346,407 and 9

10 capital equipments C'%352400, property and equipment C'%3-10000" The total assets of the proposal are C'%3 910000" There are no current liabilities remainin) in the first fiscal year of operations . ppendice311/" The comparison with the industry standard is satisfactory"

A 239707K1-500 G570000K0 A 2--407G570000A 0"36-5

The )overnment )rand required for new construction and startin) day room operations is C'%3572000 out of that 64"67: required for construction and 11"44: required for capital equipment" The renovation and startin) operations required C'%345-000 and out of that 51"75: required for renovation cost and 15"66: for capital equipments".Table34/

Table34
S/0.)( A0TILISATI/ 2o$ernment grand #uildings/real estate )apital e%uipment -e! )onstruction 34+555 715555 94555 1 155 96"94 11"6:9 .eno$ation 6378555"55 +498365"55 948555"55 1 155 31"43 13"99

TASK-: (:"1) ;iabilit& of the pro,ect b& using strategic management decision tools
The renovation project is financially viable due to the less capital requirement than the new construction, as well as the capital the capital equipment utilisation portion from the total

10

11 )overnment )rand .Table34/, besides that the appraisal techniques stron)ly proof and recommended to invest in renovation project.Table33/ S</T Anal&sis Strengths %rovidin) services to the indoor and room services %roduction of food made inside the (itchen <inance available to invest bility to handle the staff requirement Expansion provisions available <ea=nesses 2utside the premises all facilities available >ome portion of production depends out parties 8ependin) )overnment )rant #nnovation and expansion of products /pportunities <uture expansion facility and fund availability 1han)in) to new trends and tastes 1ustomers easy access and choice is limited to premises >tandard, specified and quality food for patients prescribed by law Threats %ermission from )overnment side 1ompilin) patient trends and visitors tastes and trends 2utside easy accessible super mar(ets and restaurants Technolo)ical evolution reduces to use internet services due to mobile technolo)y

(:"+) )apital pro,ect proposal in standard format

%repared by <inancial 1onsultant %roject #nformation %roject im To examine the viability of investment option .To investi)ate the viability and decide to invest in renovate or build a new day room/ 8ate 29G0-G2013 Executive >ponsor Covernment

!ationale

11

12

,ey rea of <ocus

To implement the selected renovation pro)ram in desired time

>tart 8ate

01G07G2013

%rojected End 8ate

30G10G2013

%roject 2bjectives .>; !T/L The project involved renovation of a less maintained buildin) The project involved to renovate it and not involvin) the base construction" The renovation and operation process be)ins in specified time period and the results are achieved in a specified period" The time bound plannin) of renovation, procurement, staffin) should be scaled in a time frame"

%roject >cope 4 #$

%roject >cope 3 2+T

To satisfy the health care users and customers those visitin) the main hospital

The quality services to the society and users

#t is beneficial to the prime sta(eholders

1ommunity members can easy access and provide them service locally

#t helps to improve quality and performance

Muality service for customers money

!eputation and financial benefits to sta(eholders

The local service helps community to save money

12

13

;easure Expected 'enefitsL 'enefit Ihat is the benefitN %erfection in service Taxation <inancial benefit Ihat is the measureN #ndustry standards Tax rules #ndustry

>ta(eholder

Iho benefitsN 1ommunity Covernment #nternal sta(e holders

,ey ;ilestones .sta)es of the project plan/L

;ilestone

>tart 2ut

8efine F >cope

;easure F +nderstand

8esi)n F %lan

%ilot F #mplement

>ustain F >hare

Tar)et 1ompletion 8ate

31G10G2013

simultaneously start wor( by implementin) .%E!T/

%roject supervision and completion

'ased on plan

>upervisor responsible

#mplement the strate)y

%roject TeamL . /

!oleL %roject mana)er and administrator #mplementation of the plan %rocurement and resource allocation includin) O!

Time commitmentL 50 days

.'/

50 8 J>

dditional !esource !equirementsL %rocurement of capital equipments, staffin)

dditional #nformationL

13

14 The project should be implementin) at precise time and should be started providin) services at pre3planned time schedule"

CONCL S!ON The financial analysis report critically evaluated financial theories and tools in or)anizational settin) for critically evaluate financial information and ma(e jud)ments for or)anizational performance and assessed financial strate)ies and prepared proposal for a day room project investment plan and decision" The findin)s were to invest in the renovation project" The limitations of the study was, it used only the comparison of renovation and new construction projects and not used deep industry data comparisons and alternate models and data comparisons and one methodolo)ical conclusion of data were submitted"

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A$$EN%!CES
ppndice31

1-

15

ppndice32

ppndice33

15

16

ppndice34

%otal &'"are (eet 300 Avera e co!str"ct$o! )ost 0$!-ows a!- e1ter!al )h$+!e2 &ta$rs 3##er floors .oof 41ter!al 0alls (o"!-at$o!

)ost *+2 1700 New ,"$l8.12/ 1.99/ 0.99/ 2.53/ 11.60/ 15.22/ 10.20/ Pro#ort$o!

%otal 510000 .e!ovat$o! / 4.40/ 0.55/ 0.25/ 0.25/ 5.00/ 5.55/ 1.25/ .e!ovat$o! )ost 22,440.00 2,805.00 1,275.00 1,275.00 25,500.00 28,305.00 6,375.00 41,412.00 10,149.00 5,049.00 12,903.00 59,160.00 77,622.00 52,020.00

16

17
5!ter!al Part$t$o! 5!ter!al 6oors (loor ($!$shes 0all ($!$shes )e$l$! ($!$shes 7"$lt $! )"#,oar-s 8$tche! ($tt$! s &a!$tar2 ($tt$! s 0aste #$#es 9ot a!- )ol- 0ater 9eat$! 4lectr$cal 2.25/ 2.25/ 4.53/ 8.40/ 2.90/ 3.51/ 6.06/ 5.73/ 5.23/ 1.11/ 3.38/ 4.00/ 100.00/ 11,475.00 11,475.00 23,103.00 42,840.00 14,790.00 17,901.00 30,906.00 29,223.00 26,673.00 5,661.00 17,238.00 20,400.00 510,000.00 2/ 1.25/ 2.25/ 2.25/ 1.50/ 1.30/ 7.06/ 5.73/ 5.73/ 1.62/ 3.48/ 4.98/ 56.40/ 10,200.00 6,375.00 11,475.00 11,475.00 7,650.00 6,630.00 36,006.00 29,223.00 29,223.00 8,262.00 17,748.00 25,398.00 287,640.00

ppndice3("r!$sh$! a!- stoc: $te+s for -a2 roo+ o#erat$o!s 6a2 .oo+ ("r!$sh$! )o"ches %elev$s$o! )offee %a,le 7oo: )ase 0aste 7$! )o+#"ters co+#"ter ta,le a!- cha$r )offee sho# e'"$##$! coffee +a:er ta,le a!- cha$rs <$scella!eo"s ="t #at$e!ts a!- v$s$tors coffee sho# e'"$##$! :$tche! w$th foo- #re#arat$o! accessor$es 6$s#la2 "!$ts ta,le , cha$rs accessor$es )o!ve!$e!ce store f"r!$sh$! a!- cash +ach$!e ;t2 6 4 4 2 4 4 4 0 1 2 1 0 1 1 1 0 1 1 0 1 1 3!$t #r$ce 700 1600 600 800 150 1500 700 0 1800 1200 2000 0 10000 4000 10000 0 20000 10000 0 10000 12000 1800 2400 2000 0 10000 4000 10000 0 10000 10000 0 10000 12000 %otal 4200 6400 2400 1600 600 6000 2800

&toc: for sale >$ft sho# store rac: a!- cash +ach$!e &toc: for sale a!- +$scella!eo"s

17

19

<$scella!eo"s 41#e!ses for tra!s#ortat$o! etc.. %otal 4st$+ate- )ost

3800

3800 100,000.00

ppndice35
P.=P=&46 -a2 roo+ #ro?ect (N40 )=N&%.3)%5=N) &tart"# 41#e!ses a!- &o"rces of f"!>over!+e!t ra!100/ 682,000.00 682,000.00

%otal 5!vest+e!t

>over!+e!t

ra!ra!-

100/

680,000 680,000 510,000.00 510,000.00 0

%otal >over!+e!t

)=N&%.3)%5=N )=&% 300 +2 @ Po"!1700*+2 %otal 7"$l-$! s )ost )a#$tal 4'"$#+e!t A$st

6a2 .oo+ ("r!$sh$!

24,000

)offee sho# e'"$##$! ="t #at$e!ts a!- v$s$tors coffee sho# e'"$##$!

6,200

24,000

)o!ve!$e!ce store

10,000

>$ft sho# %otal )a#$tal 4'"$#+e!t Aocat$o! a!- A-+$! 41#e!ses Pre#a$- $!s"ra!ce PreBo#e!$! salar$es =ther %otal Aocat$o! a!- A-+$! 41#e!ses =#e!$! 5!ve!tor2

13,800 78,000.00 5000 2,000 10,000 6,000 18,000

19

20

stoc: co!ve!$e!ce store stoc: for $ft store %otal 5!ve!tor2 A-vert$s$! a!- Pro+ot$o!al 41#e!ses &$ !a e Pr$!t$! %ravel*e!terta$!+e!t =ther*a--$t$o!al cate or$es %otal A-vert$s$! *Pro+ot$o!al 41#e!ses =ther e1#e!se 1*5 !a "ral =ther e1#e!se 2 %otal =ther 41#e!ses

10,000 12,000 22,000

3,000 1,000 2,000 1,000 7,000 2,000 3,000 5,000

.eserve for )o!t$! e!c$es 0or:$! )a#$tal &"++ar2 &tate+e!t &o"rces of )a#$tal >over!+e!t ra!-

10,000 30,000

682,000 682,000

%otal &o"rce of ("!-s &tart"# 41#e!ses 7"$l-$! s*real estate )a#$tal e'"$#+e!t Aocat$o!*a-+$!$strat$o! e1#e!ses =#e!$! $!ve!tor2 A-vert$s$! *#ro+ot$o!al e1#e!ses =ther e1#e!ses )o!t$! e!c2 f"!0or:$! ca#$tal %otal &tart"# 41#e!ses

510,000 78,000 18,000 22,000 7,000 5,000 10,000 30,000 680,000

20

21 ppndice36
P.=P=&46 -a2 roo+ #ro?ect (.4N=VA%5=N) &tart"# 41#e!ses a!- &o"rces of f"!>over!+e!t ra!100/ 465,000.00 465,000.00

%otal 5!vest+e!t

>over!+e!t

ra!ra!-

100/

465,000 465,000 287,640.00 287,640.00 0

%otal >over!+e!t

4&%5<A%46 .4N=VA%5=N 4@P4N&4& %otal .e!ovat$o! )ost )a#$tal 4'"$#+e!t A$st

6a2 .oo+ ("r!$sh$!

24,000

)offee sho# e'"$##$! ="t #at$e!ts a!- v$s$tors coffee sho# e'"$##$!

6,200

24,000

)o!ve!$e!ce store >$ft sho# %otal )a#$tal 4'"$#+e!t Aocat$o! a!- A-+$! 41#e!ses Ae al a!- acco"!t$! fees Pre#a$- $!s"ra!ce PreBo#e!$! salar$es =ther %otal Aocat$o! a!- A-+$! 41#e!ses =#e!$! 5!ve!tor2 stoc: co!ve!$e!ce store stoc: for $ft store %otal 5!ve!tor2 A-vert$s$! a!- Pro+ot$o!al 41#e!ses &$ !a e Pr$!t$! %ravel*e!terta$!+e!t

10,000 13,800 78,000.00 5000 2,000 2,000 10,000 6,000 25,000

10,000 12,000 22,000

3,000 1,360 2,000

21

22

=ther*a--$t$o!al cate or$es %otal A-vert$s$! *Pro+ot$o!al 41#e!ses =ther e1#e!se 1*5 !a "ral =ther e1#e!se 2 %otal =ther 41#e!ses

1,000 7,360 2,000 3,000 5,000

.eserve for )o!t$! e!c$es 0or:$! )a#$tal &"++ar2 &tate+e!t &o"rces of )a#$tal >over!+e!t ra!-

10,000 30,000

465,000 465,000

%otal &o"rce of ("!-s &tart"# 41#e!ses 7"$l-$! s*real estate )a#$tal e'"$#+e!t Aocat$o!*a-+$!$strat$o! e1#e!ses =#e!$! $!ve!tor2 A-vert$s$! *#ro+ot$o!al e1#e!ses =ther e1#e!ses )o!t$! e!c2 f"!0or:$! ca#$tal %otal &tart"# 41#e!ses

287,640 78,000 25,000 22,000 7,360 5,000 10,000 30,000 465,000

*./*/S( da& room pro,ect Startup ('penses and Sources of fund 2o$ernment grand Total In$estment 1551 34+8555"55 34+8555"55

2o$ernment grand

1551

> 34+8555

22

23
Total 2o$ernment grand )/-ST.0)TI/- )/ST :55 m+ ? *ound 1955/m+ > 34+8555 7158555"55

Total #uildings )ost )apital (%uipment List a& .oom Furnishing

7158555"55 5 > +68555

)offee shop e%uipping /ut patients and $isitors coffee shop e%uiping

38+55 +68555

)on$inience store 2ift shop Total )apital (%uipment Location and Admin ('penses *repaid insurance *re-opening salaries /ther Total Location and Admin ('penses /pening In$entor& stoc= con$inience store stoc= for gift store Total In$entor& Ad$ertising and *romotional ('penses Signage *rinting Tra$el/entertainment > > > > >

158555 1:8455 >948555"55 7555 +8555 158555 38555 148555

158555 1+8555 ++8555

:8555 18555 +8555

23

24
/ther/additional categories Total Ad$ertising/*romotional ('penses /ther e'pense 1/Ignagural /ther e'pense + Total /ther ('penses > > > 18555 98555 +8555 :8555 78555

.eser$e for )ontingencies <or=ing )apital Summar& Statement Sources of )apital 2o$ernment grand Total Source of Funds Startup ('penses #uildings/real estate )apital e%uipment Location/administration e'penses /pening in$entor& Ad$ertising/promotional e'penses /ther e'penses )ontingenc& fund <or=ing capital Total Startup ('penses

> >

158555 :58555

> 34+8555 > 34+8555

> 7158555 948555 148555 ++8555 98555 78555 158555 :58555 > 3458555

ppndice37
)A&9 .4)45P%& )ash &ales )offee 7ar Daily Collection 280 month total 8,400 year total 100,800 profit margin20% 20,160

24

2)ash &ales 5!ter!et serv$ces )ollect$o! fro+ <assa $! )ha$r ="t #at$e!t a!- v$s$tors )afC )o!ve!$e!ce store >$ft sho# %=%AA )A&9 .4)45P%& 240 160 1,800 800 600 440,000 7,200 4,800 54,000 24,000 18,000 116,400 86,400 57,600 648,000 288,000 216,000 1,396,800 17,280 11,520 129,600 57,600 43,200 279,360

ppndice39
salar2 e1#e!ses )offee 7ar 5!ter!et serv$ces N m!er of "taff 1 0 #$erage rate%ho r 6 0 year total 12 12 &otal ho r"%month 360 360 yearly ho r" 4,320 4,320 &otal yearly "alary 25,920 0

<assa $! )ha$r ="t #at$e!t a!v$s$tors )afC )o!ve!$e!ce store >$ft sho# T/TAL Salar& ('penses

12

360

4,320

5 1 1 8

8 6 6 26

12 12 12 72

360 360 360 2,160

4,320 4,320 4,320 25,920

34,560 25,920 25,920 112,320

ppndice310
S0@@A.A /F *./B()T( I-)/@( STAT(@(-T F/. 1+ @/-TCS PROPOSED DAY ROOM Revenue of day room from all income spots %otal Revenues &ost of Sales ''$10% 100% 1, !",#00$00 1, !",#00$00 ("!," "$#0

%otal &ost of Sales )ross Profit **$!0%

("!," "$#0 "+(,1" $+0

E,penses Pay roll and ot-er e,penses 1'$0'% +10,+1#$*0

%otal E,penses

+10,+1#$*0

Operatin. Profit /efore 0inancin. E,penses Ad1usted E/2%ADA 3ess Depreciation4(#000 5 +0%6

+!$#'%

*1",!**$#0

1',"00$00

2-

25
Ad1usted Operatin. Profit Less AmortiDation of Assets Less -on- recurring Assets Operatin. Profit /efore 0inance &-ar.es Add Finance Income Less Finance ('penses (345555 ? 1+1) *rofit #efore Ta'ation Less Ta'ation +71 *rofit for the period 19"19 +4"9: +#$( *01, **$#0 7 6518:66"45 418355"55 :1E8966"45 9E8E:3"+5 +:E8454"35

ppndice311

ppndice312

Cash Flow (12 months) PreStartup EST Cash on $an% (&eg'nn'ng o( month) 1)*+** * Aug-13 Sep-13 Oct-13 12-+,1 No 13 1.1+#3 / !ec-13 221+/. 2 "an-1# 2).+*2 )

#*+***

)#+)#,

25

26 CAS$ 0ECE1PTS Cash Sales all outlets

* * *

11/+#** *

11/+#**

11/+#* *

11/+#* *

11/+#* *

11/+#* *

TOTA2 CAS$ 0ECE1PTS Total Cash A a'la&le (&e(ore cash out) CAS$ PA1! O3T E4u'pments Other Assets 5'scallaneo us Pa6roll e7penses (ta7es+ etc8) Outs'%e ser 'ces Suppl'es (o(('ce 9 oper8) 0epa'rs 9 ma'ntenanc e A% ert's'ng Car+ %el' er6 9 tra el Account'ng 9 legal 0ent Telephone 3t'l't'es 1nsurance Ta7es (real estate+ etc8) 1nterest 'n entor6 purchase Other cater'ng

* 1)*+** *

11/+#**

11/+#**

11/+#* * 2#,+-1

11/+#* * 2-)+.3 /

11/+#* * 33.+*. 2

11/+#* * 3-#+#2 )

1,/+#**

1-1+1#,

).+*** * 1.+*** * * -3/* ,+/,* .+/,# 1+/,. )+*** #+*** 1+.** /** 2** /** 1+2** /** /** * 22+*** 2/+*** 12+*** -3/* ,+/,* .+/,# 1+/,. 2+*** 1+.** /** 2** ,** 1+2** /** /** * .+*** 12+*** -+3/* ,+/,* .+/,# 1+/,. 1+*** 1+.** /** 2** ,** 1+2** /** /** * 12+*** 12+*** -+3/* ,+/,* .+/,# 1+/,. /** 1+.** /** 2** ,** 1+2** /** /** * 2#+*** 12+*** -+3/* ,+/,* .+/,# 1+/,. ,** 1+.** /** 2** ,** 1+2** /** /** * .+*** 12+*** -+3/* ,+/,* .+/,# 1+/,. ,** 1+.** /** 2** ,** 1+2** /** /** * 12+*** 12+***

26

27 ser 'ces Other pro%uct'on e7penses 5'scellaneo us S3:TOTA2 2oan pr'nc'pal pa6ment Cap'tal purchase (spec'(6) Other startup costs 0eser e an%;or Escrow Owners< ='th%rawal TOTA2 CAS$ PA1! O3T Cash Pos't'on (en% o( month)

,+***

.+,** 233

.+,** 233 /1+,,,

.+,** 233 /#+,,, *

.+,** 233 )/+1,, *

.+,** 233 /*+*,, *

.+,** 233 /#+*,, *

13*+** * .1+/,#8/* * * * * * 13*+** * #*+*** .1+/,, *

/1+,,,

/#+,,, 1.1+#3 /

)/+1,, 221+/. 2

/*+*,, 2).+*2 )

/#+*,, 33*+3) 2

)#+)#,

12-+,-1

ppndice313
Feb-16 1ash on Oand .be)innin) of month/ 1 >O !E1E#%T> 1ash >ales all outlets 330,362 @ar-16 390,617 Apr-16 443,053 @a&-16 -01,409 Bun-16 -49,6-4 Bul-16 502,099

115,400

115,400

115,400

115,400

115,400

115,400

T2T R 1 >O !E1E#%T> Total 1ash vailable .before cash out/

115,400 445,662

115,400 -06,117

115,400 --9,453

115,400 516,709

115,400 555,1-4

115,400 617,499

27

29

1 >O % #8 2+T Equipments 2ther ssets ;iscellaneous %ayroll expenses .taxes, etc"/ 2utside services >upplies .office F oper"/ !epairs F maintenance dvertisin) 1ar, delivery F travel ccountin) F le)al !ent Telephone +tilities #nsurance Taxes .real estate, etc"/ #nterest inventory purchase 2ther caterin) services 2ther production expenses ;iscellaneous >+'T2T R Roan principal payment 1apital purchase .specify/ 2ther startup costs !eserve andGor Escrow 2wnersS Iithdrawal T2T R 1 >O % #8 2+T )ash *osition (end of month) 9,350 -,5-0 7,5-4 1,5-7 -00 1,700 500 200 -00 1,200 500 500 0 4,000 12,000 7,-00 233 -5,0-0 9,350 -,5-0 7,5-4 1,5-7 -00 1,700 500 200 -00 1,200 500 500 0 12,000 12,000 7,-00 233 54,0-0 9,350 -,5-0 7,5-4 1,5-7 -00 1,700 500 200 -00 1,200 500 500 0 5,000 12,000 7,-00 233 -7,0-0 9,350 -,5-0 7,5-4 1,5-7 -00 1,700 500 200 -00 1,200 500 500 0 15,000 12,000 7,-00 233 57,0-0 9,350 -,5-0 7,5-4 1,5-7 -00 1,700 500 200 -00 1,200 500 500 0 12,000 12,000 7,-00 233 54,0-0 9,350 -,5-0 7,5-4 1,5-7 -00 1,700 500 200 -00 1,200 500 500 0 9,000 12,000 7,-00 233 51,0-0

-5,0-:E58914

54,0-66:853:

-7,0-751865E

57,0-76E8976

54,0-35+85EE

51,0-3798667

29

30

ppendice314
C5-; F8+< S.5.3=3,. Y35/ 0 1 & * 4 5 TOTAL C.F C+,-./01.2+, - '0:000 &*)'0' &51%)' & 4*'' &%% 0% &)14'% 1:*&5:0''.*& C0=085.243 C.F - '0:000 -440:1)& -1'':*)4 %5))4.*& &01: 1* '):'%4 R3,+45.2+, -4 5:000 &*)'0' &51%)' & 4*'' &%% 0% &)14'% 1:*&5:0''.*& C0=085.243 C.F -4 5:000 -&&5:1)& & : 0 &)0))4.*& -1*:*'% *04:'%4

ppndice31Total Expenses 1,1-5,991"40 1,170,131"23 1,203,633"71,226,707"-3 1,2-2,354"60 1ash #nflow 1,395,700"00 1,455,540"00 1,-39,962"00 1,515,960"50 1,596,719"13 : increase 2: 2: 2: 2: 2: : increase -: -: -: -: -: #ncreased mt" 23,139"73 23,502"52 24,064"57 24,--5"16 2-,046"29 #ncreased mt" 59,740"00 63,332"00 65,997"50 70,747"-3 74,790"95 Jearly outflow 1,170,131"23 1,203,633"71,226,707"-3 1,2-2,354"60 1,266,411"99 Jearly #nflow 1,455,540"00 1,-39,962"00 1,515,960"50 1,596,719"13 1,672,610"09

30

31

ppndice315

ppndice316

ppndice317

31

32

ppndice319

32

33

ppndice320

33

34

34