Business Case Model(Prepared by Reyaz Siddiqui)

7/28/2019 Business Case Model(Prepared by Reyaz Siddiqui)

1/34

Production Capacity 1,700,000

Price of unit 6000

Sales tax of Gross sale 17%

Rise of no. of units 2%

Rise in price 6%

Stock of end of the year 20%

Work in Process ending percentage to the cost of goods manufactured 0.0274

Stores and spares consumed 3%

Salaries, wages and benefits 9%

Travelling, conveyance and vehicles maintenance 8%

Legal and professional charges 5%

Power and fuel 10%

Rent, rates and taxes 5%

Insurance 5%

Repairs and maintenance 6%

replacement allowance 3%

Printing and stationery 5%

Postage and telephone 5%

Freight and insurance 3%

Other manufacturing expenses 6%

Ending Fininshed goods 7.89%

Column1 Column2

Administrative Expense 3%

Distribution cost 3%

Other Operating Expenses 3%

Other operating Income 3%

Financing Cost 3%

TAX rate 18%


2/34

Material available

of Cost of manufactured

ADMIN Expense 6,000

DISTRIB Expense 7,000

OPERATING exp 8,000

OPERATING income 2,000

Finan cost 15,000


3/34


4/34

YEAR 2012 2013 2014 2015

no. of units 1,700,000 1,734,000 1,768,680 1,804,054

Price of per unit 6,000 6,360 6,742 7,146

Total Revenue 10,200,000,000 11,028,240,000 11,923,733,088 12,891,940,215

Sales tax (1,734,000,000) (1,874,800,800) (2,027,034,625) (2,191,629,837)

Net sale 8,466,000,000 9,153,439,200 9,896,698,463 10,700,310,378

NET sale divide by 1000 8,466,000 9,153,439 9,896,698 10,700,310


5/34

2016 2017 2018 2019 2020 2021

1,840,135 1,876,937 1,914,476 1,952,766 1,991,821 2,031,657

7,575 8,029 8,511 9,022 9,563 10,137

13,938,765,760 15,070,593,540 16,294,325,735 17,617,424,985 19,047,959,894 20,594,654,237

(2,369,590,179) (2,562,000,902) (2,770,035,375) (2,994,962,247) (3,238,153,182) (3,501,091,220)

11,569,175,581 12,508,592,638 13,524,290,360 14,622,462,738 15,809,806,712 17,093,563,017

11,569,176 12,508,593 13,524,290 14,622,463 15,809,807 17,093,563


6/34

2022 2023 2024 2025 2026 2027

2,072,291 2,113,736 2,156,011 2,199,131 2,243,114 2,287,976

10,745 11,390 12,073 12,798 13,565 14,379

22,266,940,161 24,075,015,702 26,029,906,977 28,143,535,424 30,428,790,500 32,899,608,289

(3,785,379,827) (4,092,752,669) (4,425,084,186) (4,784,401,022) (5,172,894,385) (5,592,933,409)

18,481,560,334 19,982,263,033 21,604,822,791 23,359,134,402 25,255,896,115 27,306,674,880

18,481,560 19,982,263 21,604,823 23,359,134 25,255,896 27,306,675


7/34

2028 2029 2030 2031 2032 2033

2,333,736 2,380,410 2,428,019 2,476,579 2,526,111 2,576,633

15,242 16,157 17,126 18,154 19,243 20,397

35,571,056,482 38,459,426,268 41,582,331,681 44,958,817,014 48,609,472,956 52,556,562,160

(6,047,079,602) (6,538,102,466) (7,068,996,386) (7,642,998,892) (8,263,610,402) (8,934,615,567)

29,523,976,880 31,921,323,803 34,513,335,296 37,315,818,122 40,345,862,553 43,621,946,592

29,523,977 31,921,324 34,513,335 37,315,818 40,345,863 43,621,947


8/34

2034 2035 2036 2037 2038

2,628,165 2,680,729 2,734,343 2,789,030 2,844,811

21,621 22,918 24,294 25,751 27,296

56,824,155,007 61,438,276,393 66,427,064,437 71,820,942,069 77,652,802,565

(9,660,106,351) (10,444,506,987) (11,292,600,954) (12,209,560,152) (13,200,976,436)

47,164,048,656 50,993,769,407 55,134,463,482 59,611,381,917 64,451,826,129

47,164,049 50,993,769 55,134,463 59,611,382 64,451,826


9/34

2039 2040 2041 2042

2,901,707 2,959,741 3,018,936 3,079,315

28,934 30,670 32,510 34,461

83,958,210,133 90,775,616,796 98,146,596,880 106,116,100,546

(14,272,895,723) (15,431,854,855) (16,684,921,470) (18,039,737,093)

69,685,314,410 75,343,761,941 81,461,675,410 88,076,363,453

69,685,314 75,343,762 81,461,675 88,076,363


10/34

YEAR 2012 2013 2014 2015 2016

Stock at beginning of the year 1,370,000 1,200,000 1,140,000 1,128,000 1,125,600

Purchases 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000

Material Available 5,870,000 5,700,000 5,640,000 5,628,000 5,625,600

Less:

Stock at end of the year (1,200,000) (1,140,000) (1,128,000) (1,125,600) (1,125,120)Material Consumed 4,670,000 4,560,000 4,512,000 4,502,400 4,500,480


11/34

2017 2018 2019 2020 2021 2022 2023 2024

1,125,120 1,125,024 1,125,005 1,125,001 1,125,000 1,125,000 1,125,000 1,125,000

4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000

5,625,120 5,625,024 5,625,005 5,625,001 5,625,000 5,625,000 5,625,000 5,625,000

(1,125,024) (1,125,005) (1,125,001) (1,125,000) (1,125,000) (1,125,000) (1,125,000) (1,125,000)4,500,096 4,500,019 4,500,004 4,500,001 4,500,000 4,500,000 4,500,000 4,500,000


12/34

2025 2026 2027 2028 2029 2030 2031 2032

1,125,000 1,125,000 1,125,000 1,125,000 1,125,000 1,125,000 1,125,000 1,125,000

4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000

5,625,000 5,625,000 5,625,000 5,625,000 5,625,000 5,625,000 5,625,000 5,625,000

(1,125,000) (1,125,000) (1,125,000) (1,125,000) (1,125,000) (1,125,000) (1,125,000) (1,125,000)4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000


13/34

2033 2034 2035 2036 2037 2038 2039 2040

1,125,000 1,125,000 1,125,000 1,125,000 1,125,000 1,125,000 1,125,000 1,125,000

4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000

5,625,000 5,625,000 5,625,000 5,625,000 5,625,000 5,625,000 5,625,000 5,625,000

(1,125,000) (1,125,000) (1,125,000) (1,125,000) (1,125,000) (1,125,000) (1,125,000) (1,125,000)4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000


14/34

2041 2042

1,125,000 1,125,000

4,500,000 4,500,000

5,625,000 5,625,000

(1,125,000) (1,125,000)4,500,000 4,500,000


15/34

YEAR 2012 2013 2014 2015

Opening stock of work-in-process 158,000 180,000 170,538 171,294

Raw materials consumed 4,670,000 4,560,000 4,512,000 4,502,400

Stores and spares consumed 200,000 206,000 212,180 218,545

Salaries, wages and benefits 700,000 763,000 831,670 906,520

Travelling, conveyance and vehicles maintenance 21,000 22,680 24,494 26,454

Legal and professional charges 2,000 2,100 2,205 2,315

Power and fuel 300,000 330,000 363,000 399,300

Rent, rates and taxes 3,000 3,150 3,308 3,473

Insurance 16,000 16,800 17,640 18,522

Repairs and maintenance 35,000 37,100 39,326 41,686

replacement allowance 21,000 21,630 22,279 22,947

Depreciation 141,000 141,000 141,000 141,000

Amortisation 90,000 90,000 90,000 90,000

Printing and stationery 4,000 4,200 4,410 4,631

Postage and telephone 2,000 2,100 2,205 2,315

Freight and insurance 36,000 37,080 38,192 39,338

Other manufacturing expenses 5,000 5,300 5,618 5,955

Total (Calculate it by yourself) 6,404,000 6,422,140 6,480,065 6,596,696

Work-in-process at end of the year (180,000) (170,538) (171,294) (172,860)

Cost of goods manufactured (Calculate it by yourself) 6,224,000 6,251,602 6,308,771 6,423,835


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95

100

105


17/34

2016 2017 2018 2019 2020 2021 2022 2023

172,860 176,013 179,657 183,701 188,116 192,924 198,161 203,863

4,500,480 4,500,096 4,500,019 4,500,004 4,500,001 4,500,000 4,500,000 4,500,000

225,102 231,855 238,810 245,975 253,354 260,955 268,783 276,847

988,107 1,077,037 1,173,970 1,279,627 1,394,794 1,520,325 1,657,155 1,806,298

28,570 30,856 33,324 35,990 38,870 41,979 45,337 48,964

2,431 2,553 2,680 2,814 2,955 3,103 3,258 3,421

439,230 483,153 531,468 584,615 643,077 707,384 778,123 855,935

3,647 3,829 4,020 4,221 4,432 4,654 4,887 5,131

19,448 20,421 21,442 22,514 23,639 24,821 26,062 27,365

44,187 46,838 49,648 52,627 55,785 59,132 62,680 66,440

23,636 24,345 25,075 25,827 26,602 27,400 28,222 29,069

141,000 141,000 141,000 141,000 141,000 141,000 141,000 141,000

90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000

4,862 5,105 5,360 5,628 5,910 6,205 6,516 6,841

2,431 2,553 2,680 2,814 2,955 3,103 3,258 3,421

40,518 41,734 42,986 44,275 45,604 46,972 48,381 49,832

6,312 6,691 7,093 7,518 7,969 8,447 8,954 9,491

6,732,821 6,884,077 7,049,233 7,229,152 7,425,062 7,638,405 7,870,776 8,123,920

(176,013) (179,657) (183,701) (188,116) (192,924) (198,161) (203,863) (210,073)

6,556,808 6,704,420 6,865,532 7,041,037 7,232,137 7,440,244 7,666,913 7,913,846


18/34


19/34

2024 2025 2026 2027 2028 2029 2030 2031

210,073 216,839 224,212 232,246 241,003 250,550 260,959 272,311

4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000

285,152 293,707 302,518 311,593 320,941 330,570 340,487 350,701

1,968,865 2,146,063 2,339,209 2,549,738 2,779,214 3,029,343 3,301,984 3,599,163

52,882 57,112 61,681 66,616 71,945 77,700 83,916 90,630

3,592 3,771 3,960 4,158 4,366 4,584 4,813 5,054

941,529 1,035,681 1,139,250 1,253,174 1,378,492 1,516,341 1,667,975 1,834,773

5,388 5,657 5,940 6,237 6,549 6,876 7,220 7,581

28,734 30,170 31,679 33,263 34,926 36,672 38,506 40,431

70,427 74,652 79,132 83,880 88,912 94,247 99,902 105,896

29,941 30,839 31,764 32,717 33,699 34,710 35,751 36,824

141,000 141,000 141,000 141,000 141,000 141,000 141,000 141,000

90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000

7,183 7,543 7,920 8,316 8,731 9,168 9,626 10,108

3,592 3,771 3,960 4,158 4,366 4,584 4,813 5,054

51,327 52,867 54,453 56,087 57,769 59,503 61,288 63,126

10,061 10,665 11,305 11,983 12,702 13,464 14,272 15,128

8,399,745 8,700,339 9,027,981 9,385,165 9,774,615 10,199,312 10,662,513 11,167,779

(216,839) (224,212) (232,246) (241,003) (250,550) (260,959) (272,311) (284,692)

8,182,906 8,476,127 8,795,735 9,144,161 9,524,065 9,938,353 10,390,202 10,883,087


20/34


21/34

2032 2033 2034 2035 2036 2037 2038 2039

284,692 298,197 312,930 329,006 346,549 365,694 386,591 409,402

4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000

361,222 372,059 383,221 394,717 406,559 418,756 431,318 444,258

3,923,088 4,276,165 4,661,020 5,080,512 5,537,758 6,036,156 6,579,411 7,171,557

97,880 105,711 114,167 123,301 133,165 143,818 155,323 167,749

5,307 5,572 5,851 6,143 6,450 6,773 7,111 7,467

2,018,250 2,220,075 2,442,082 2,686,291 2,954,920 3,250,412 3,575,453 3,932,998

7,960 8,358 8,776 9,215 9,675 10,159 10,667 11,200

42,453 44,575 46,804 49,144 51,602 54,182 56,891 59,735

112,250 118,985 126,124 133,691 141,713 150,215 159,228 168,782

37,928 39,066 40,238 41,445 42,689 43,969 45,288 46,647

141,000 141,000 141,000 141,000 141,000 141,000 141,000 141,000

90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000

10,613 11,144 11,701 12,286 12,900 13,545 14,223 14,934

5,307 5,572 5,851 6,143 6,450 6,773 7,111 7,467

65,020 66,971 68,980 71,049 73,181 75,376 77,637 79,966

16,036 16,998 18,018 19,099 20,245 21,459 22,747 24,112

11,719,004 12,320,447 12,976,762 13,693,042 14,474,855 15,328,287 16,260,000 17,277,276

(298,197) (312,930) (329,006) (346,549) (365,694) (386,591) (409,402) (434,306)

11,420,808 12,007,517 12,647,756 13,346,494 14,109,161 14,941,696 15,850,598 16,842,970


22/34


23/34

2040 2041 2042

434,306 461,497 491,188

4,500,000 4,500,000 4,500,000

457,586 471,313 485,452

7,816,998 8,520,527 9,287,375

181,169 195,663 211,316

7,840 8,232 8,644

4,326,298 4,758,928 5,234,821

11,760 12,348 12,966

62,722 65,858 69,151

178,909 189,644 201,022

48,046 49,488 50,973

141,000 141,000 141,000

90,000 90,000 90,000

15,681 16,465 17,288

7,840 8,232 8,644

82,365 84,836 87,381

25,558 27,092 28,717

18,388,080 19,601,124 20,925,938

(461,497) (491,188) (523,612)

17,926,582 19,109,936 20,402,326


24/34

YEAR 2012 2013 2014 2015 2016 2017

Finished Goods at start 700,000 491,074 493,251 497,762 506,841 517,332

Cost of goods manufactured 6,224,000 6,251,602 6,308,771 6,423,835 6,556,808 6,704,420

Finished goods at ending (491,074) (493,251) (497,762) (506,841) (517,332) (528,979)

Cost of Goods Sold 6,432,926 6,249,425 6,304,260 6,414,757 6,546,317 6,692,774


25/34

2018 2019 2020 2021 2022 2023 2024 2025

528,979 541,690 555,538 570,616 587,035 604,919 624,402 645,631

6,865,532 7,041,037 7,232,137 7,440,244 7,666,913 7,913,846 8,182,906 8,476,127

(541,690) (555,538) (570,616) (587,035) (604,919) (624,402) (645,631) (668,766)

6,852,820 7,027,189 7,217,059 7,423,825 7,649,029 7,894,363 8,161,677 8,452,992


26/34

2026 2027 2028 2029 2030 2031 2032 2033

668,766 693,983 721,474 751,449 784,136 819,787 858,676 901,102

8,795,735 9,144,161 9,524,065 9,938,353 10,390,202 10,883,087 11,420,808 12,007,517

(693,983) (721,474) (751,449) (784,136) (819,787) (858,676) (901,102) (947,393)

8,770,518 9,116,671 9,494,091 9,905,665 10,354,551 10,844,199 11,378,381 11,961,225


27/34

2034 2035 2036 2037 2038 2039 2040

947,393 997,908 1,053,038 1,113,213 1,178,900 1,250,612 1,328,910

12,647,756 13,346,494 14,109,161 14,941,696 15,850,598 16,842,970 17,926,582

(997,908) (1,053,038) (1,113,213) (1,178,900) (1,250,612) (1,328,910) (1,414,407)

12,597,241 13,291,364 14,048,986 14,876,009 15,778,886 16,764,671 17,841,085


28/34

2041 2042

1,414,407 1,507,774

19,109,936 20,402,326

(1,507,774) (1,609,744)

19,016,569 20,300,356


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Rupees in "000"

YEAR 2012 2013 2014 2015 2016

Net sale 8,466,000 9,153,439 9,896,698 10,700,310 11,569,176

Cost of Goods sold (6,432,926) (6,249,425) (6,304,260) (6,414,757) (6,546,317)

Gross Profit 2,033,074 2,904,015 3,592,438 4,285,554 5,022,859

AdministrativeExpense (6,000) (6,180) (6,365) (6,556) (6,753)

Distribution cost (7,000) (7,210) (7,426) (7,649) (7,879)

Other Operating

Expenses (8,000) (8,240) (8,487) (8,742) (9,004)

Other operating

Income 2,000 2,060 2,122 2,185 2,251

Profit from

Operations 2,014,074 2,884,445 3,572,281 4,264,792 5,001,474

Financing Cost (15,000) (15,450) (15,914) (16,391) (16,883)

Profit beforetaxation 1,999,074 2,868,995 3,556,368 4,248,401 4,984,592

Taxation (359,833) (516,419) (640,146) (764,712) (897,227)

Net Profit 1,639,240 2,352,576 2,916,221 3,483,689 4,087,365

Net profit in

Foreign Exchange

rate 1,639,240 2,352,576 2,916,221 3,483,689 4,087,365

Exchange rate 1

1

95

100

105


30/34

2017 2018 2019 2020 2021 2022

12,508,593 13,524,290 14,622,463 15,809,807 17,093,563 18,481,560

(6,692,774) (6,852,820) (7,027,189) (7,217,059) (7,423,825) (7,649,029)

5,815,819 6,671,470 7,595,273 8,592,747 9,669,738 10,832,531

(6,956) (7,164) (7,379) (7,601) (7,829) (8,063)

(8,115) (8,358) (8,609) (8,867) (9,133) (9,407)

(9,274) (9,552) (9,839) (10,134) (10,438) (10,751)

2,319 2,388 2,460 2,534 2,610 2,688

5,793,793 6,648,783 7,571,906 8,568,679 9,644,948 10,806,997

(17,389) (17,911) (18,448) (19,002) (19,572) (20,159)

5,776,404 6,630,872 7,553,458 8,549,677 9,625,376 10,786,838

(1,039,753) (1,193,557) (1,359,622) (1,538,942) (1,732,568) (1,941,631)

4,736,651 5,437,315 6,193,835 7,010,735 7,892,808 8,845,207

4,736,651 5,437,315 6,193,835 7,010,735 7,892,808 8,845,207


31/34

2023 2024 2025 2026 2027 2028

19,982,263 21,604,823 23,359,134 25,255,896 27,306,675 29,523,977

(7,894,363) (8,161,677) (8,452,992) (8,770,518) (9,116,671) (9,494,091)

12,087,900 13,443,146 14,906,142 16,485,378 18,190,004 20,029,886

(8,305) (8,555) (8,811) (9,076) (9,348) (9,628)

(9,690) (9,980) (10,280) (10,588) (10,906) (11,233)

(11,074) (11,406) (11,748) (12,101) (12,464) (12,838)

2,768 2,852 2,937 3,025 3,116 3,209

12,061,599 13,416,056 14,878,240 16,456,639 18,160,403 19,999,397

(20,764) (21,386) (22,028) (22,689) (23,370) (24,071)

12,040,836 13,394,670 14,856,212 16,433,950 18,137,033 19,975,326

(2,167,350) (2,411,041) (2,674,118) (2,958,111) (3,264,666) (3,595,559)

9,873,485 10,983,629 12,182,094 13,475,839 14,872,367 16,379,767

9,873,485 10,983,629 12,182,094 13,475,839 14,872,367 16,379,767


32/34

2029 2030 2031 2032 2033 2034

31,921,324 34,513,335 37,315,818 40,345,863 43,621,947 47,164,049

(9,905,665) (10,354,551) (10,844,199) (11,378,381) (11,961,225) (12,597,241)

22,015,658 24,158,784 26,471,619 28,967,481 31,660,721 34,566,807

(9,917) (10,215) (10,521) (10,837) (11,162) (11,497)

(11,570) (11,917) (12,275) (12,643) (13,022) (13,413)

(13,223) (13,619) (14,028) (14,449) (14,882) (15,329)

3,306 3,405 3,507 3,612 3,721 3,832

21,984,254 24,126,438 26,438,303 28,933,165 31,625,376 34,530,401

(24,793) (25,536) (26,303) (27,092) (27,904) (28,742)

21,959,462 24,100,901 26,412,000 28,906,073 31,597,471 34,501,660

(3,952,703) (4,338,162) (4,754,160) (5,203,093) (5,687,545) (6,210,299)

18,006,758 19,762,739 21,657,840 23,702,980 25,909,926 28,291,361

18,006,758 19,762,739 21,657,840 23,702,980 25,909,926 28,291,361


33/34

2035 2036 2037 2038 2039 2040

50,993,769 55,134,463 59,611,382 64,451,826 69,685,314 75,343,762

(13,291,364) (14,048,986) (14,876,009) (15,778,886) (16,764,671) (17,841,085)

37,702,406 41,085,477 44,735,373 48,672,941 52,920,643 57,502,677

(11,842) (12,197) (12,563) (12,940) (13,328) (13,728)

(13,815) (14,230) (14,656) (15,096) (15,549) (16,015)

(15,789) (16,262) (16,750) (17,253) (17,770) (18,303)

3,947 4,066 4,188 4,313 4,443 4,576

37,664,908 41,046,854 44,695,591 48,631,965 52,878,438 57,459,206

(29,604) (30,492) (31,407) (32,349) (33,319) (34,319)

37,635,304 41,016,362 44,664,184 48,599,616 52,845,119 57,424,887

(6,774,355) (7,382,945) (8,039,553) (8,747,931) (9,512,121) (10,336,480)

30,860,949 33,633,417 36,624,631 39,851,686 43,332,998 47,088,407

30,860,949 33,633,417 36,624,631 39,851,686 43,332,998 47,088,407


34/34

2041 2042

81,461,675 88,076,363

(19,016,569) (20,300,356)

62,445,106 67,776,007

(14,139) (14,564)

(16,496) (16,991)

(18,853) (19,418)

4,713 4,855

62,400,332 67,729,889

(35,348) (36,409)

62,364,983 67,693,480

(11,225,697) (12,184,826)

51,139,286 55,508,654

51,139,286 55,508,654

Documents

Business Case Model(Prepared by Reyaz Siddiqui)