“Fete n Fiesta”

Management Team

Names Shareholding

Maryam Shiekh 33.34%

Lubaina Malik 33.34%

Hamza Iqbal 33.32%

 Sale Price and Cost Per month
Product Description Per event/dinning/take Cost (rs)
away Prices (rs)

Décor materials 6000 70%

Outsource Food(Italian, Pastas (800-800) 70%

Chinese)
Salads (500-700)
Soft Drinks (100)
Pure Water(50-100)

Materials for making food (1000-5000) 70%

Project Capital & Operating Cost (Debt &equity)
Items Amount Comments
Operating Expenses:
Building rent 1,00,000 Based on area and location in DHA
2,Downtown Giga, Sector C, in front of
Lignum Tower
Products Materials 50,000 Based on quotation +taxes

Working capital 1,00,000 Estimated

Capital Expense:
Furniture(Tables, chairs, 3,00,000 Estimated
sofas)
Office Furniture 80,000 Computer, chairs, tables etc

Cutlery 1,00,000 Estimated

Machinery 1,00,000 Estimated

Invertors, Boilers Fans 5,00,000 Estimated

Rest room 30,000 Estimated

Contingency 1,00,000 Estimated

IDC 65,000 Interest rate, repayment schedule

Total project Cost 1525000 50% our investment & 50% Loan

Debt/Equity ratio 50%-50%

 ***Project WC Requirement

Items Amount

Raw Material (30 days) 100000

Cash requirements 50000

Total Working Capital Req. 150000

Assumptions for Income Statement:

 Year 1: 100 % capacity utilization
 5 % increase in inflation in each year

 Cost of goods sold each year: 70% of sale

 2% maintenance expenses

 5% increase in Administrative, staff & Utilities expenses each year

 20,000 rs salary per month

 Depreciation @ 30,000 Rs. yearly

 Increase in 10 % land rent in each year
 Revenue Model
(Calculations)

Items Year 1 Year 2 Year 3

Products line in per month For Gazebo 7500 10,000
(6000), Per
head (1200, 1350 1700
estimated)
Revenues:

Product line (No. of

customers) 8064000
1: (6000*12+1200*500*12)
2: (7500*25+1350*900*12)
3: 16830000
(10,000*50+1600*1300*12)
30960000

Total revenue 8064000 16830000 30960000

 Income Statement
(Margins)

Sales 8064000 16830000 30960000

CGS 5644800 11781000 21672000

GP margin 2419200 5049000 9288000

Adm. & Utilities 400000 420000 441000

Expenditures & salaries

Depreciation 30000 30000 30000

Maintenance Expense 161280 336600 619299

rent 100000 100000 121000

Total Operating Expense 691280 886600 1211299

EBIT 1727920 4162400 8076701

 CASH INFLOW

Cash Inflow YR0 Yr1 YR2 YR3

Loan (3 years) 7625000

Owner Equity 7625000

EBIT 1727920 4162400 8076701

Depreciation 30000 30000 30000

Total Cash 1525000 1757920 4192400 8106701

Inflow
 CASH OUTFLOW

YR 0 YR 1 YR 2 YR 3

Capital Exp. 1525000

Loan Pmt 645871 645871 645871

Interest 13% 198250 140059 74303

Income tax 5% 86396 208120 403835

Total Cash Outflow 930517 994050 1124009

Net Cash 0 827403 3198350 6982692

Project Selection (NPV & B/C Ratio:
Year Cash flows PVIF @ 13%(cost of PV
capital) for 3 years

1 827403 0.8849 732168.91

2 3198350 0.7631 2440660.88

3 6982692 0.6930 4839005.56

Total PV 8011835.35

Investment 762500

Net PV 7249335.35

B/C Ratio 7249335.35/762500 =

9.507