COSTING FOR THE BUSINESS

Costing Assumptions
Assumptions Amount
Transport
Suzuki Rs. 600000.00
Total Transport Cost 600,000.00
Raw Materials
20w-50 (Synthetic Oil) Rs.650 per liter 15600
20W-40 Rs. 450 per liter 765
Sticker for 20 liter Can Rs. 25/Sticker 25
Sticker for 1 liter and 700ml
bottle Rs. 4.5/Sticker 4.5
Sticker for 4 Liter Bottle Rs. 8/Sticker 8
Cartons 3 units (75+75+135) 285

4 Liter Bottle Can 75/can 75

1 & 700ml liter bottle 38/ bottle 38
20 liter Plastic New Polymer
Rs. 350/Can 350
Can

Blending Plant Filling Cost 110 per liter 3927

Warehouse

Rent Rs. 45000.00/Month

Shop/Office Rs.30000.00/Month
Total Rent Expense 75000
Per year 900,000

Salaries Expense
2 workers
1 Marekting Stafff Salary 25000/ Month

2 Labour Staff Salary 20000/Month

Total Salaries 65000/Month

Salaries per year 780,000

Advertising Expense Rs. 50,000/Year

Internet
Initial Amount Rs. 6000.00
Per Month Rs. 2300.00/Monthly

Total Internet Expense per

33600
year

Electricity and Utilities Rs. 25000/month

Description Amount
Balance Sheet
Assumptions:
Cash/Bank Rs. 15,000,000.00
Accrued Expenses Furniture

Laptops
G FOR THE BUSINESS

ting Assumptions
Description

Euro 2 model that will reduce cost of petrol not (2 stroke engine)

Techno Lube Blending Plant Site Area, Karachi or Star oil Company
near Hawksbay, Karachi (Group 1-2 (CF-3 & CF4) made from Virgin
oil)

Outsource Stickers from Qureshi Printers or some other

manufacturers in Site Area, Karachi

Purchased Raw material bottles from Universal plastics/ CBM

Plastics /Bottle Gali….. As we all know that the High density polymer
comes from Dubai or US so the can prices may fluctuates because it all
depends on the Dollar currency.. On the other hand as K electric tariff
increases the prices of Industries charges may increase. Carton of
different sizes also included

Finished Product with warehouse Delivery

For 300 sq. yard Warehouse

In Garden West main Oil Market Karachi

10% Increase per year as per the mutual agreement

Other incentives will be given depends on the sales

Note : 1 labour must knows driving of suzuki

We will needing labors for the upliftment of Products in lorry

Increased by 15% Each year

It includes all the costs of Printing in which our Company profile,

Visiting cards, Labour Cards, Shirts, Designing our posts for the Social
Media and Our Sign Boards (Shop Banner)and Sandi's

Stormfibre - 15MBPS will cost us PKR6000 initially and then PKR2300

per month

For first year from second year onwards 27600

Based on short survey and as per the tariff on K-electric increase it

may fluctuate

Description

3750000 per person invested (4 partners) = 15m

Rs.18000+14400(Chairs) as per Lalu khet or light house Furniture
market for per tables 6000 (3 tables) and chairs for Rs.1200
6,400 each (4 chairs)
Own Laptops
 Projected Profit & Lo

Lub

Sales Revenue

Cost of goods sold

Gross Profit

Operating Expenses
Salaries & Wages
Internet Expense
Utilities
Rent
Advertising Expense
Repair & maintenance
Depreciation
Miscellaneous

Total Operating Expenses

Net Operating
Income/EBIT
Interest expense
EBT
Tax GST ( 17 %)

Net Profit

Net Profit/Sales
Projected Profit & Loss Statement of 3 years

Lubricants
Amounts in PKR
2022 2023
9,000,000 12,000,000

6,300,000 8,400,000
2,700,000 3,600,000

780,000 850,000
33,600 27,600
25,000 50,000
900,000 990,000
50,000 100,000
50,000 55,000
80,000 80,000
100,000 160,000

2,018,600 2,312,600

681,400 1,287,400
 109,024 75,000
572,376 1,212,400
PKR 206,108

572,376 1,006,292

6% 8%
 2024
15,000,000

10,500,000
4,500,000

890,000
27,600
75,000
1,089,000
150,000
95,000
80,000
120,000

2,526,600

1,973,400
 60,000
1,913,400
PKR 325,278

1,588,122

11%
 Projected Balance Sheet

Lubricants Supplier

Starting Balances
Cash
Accounts Receivable
Inventory (Raw Material
Prepaid rent(Security Deposit)
Total Current Assets
Non Current Asset
Furniture
Vehicle
Less: Depreciation Vehicle
Net Vehicle
Equipment
Less: Depreciation
Net Equipment
Total Long-Term Assets

Total Assets

Liabilties & Owners Equity

Accounts Payable
Salaries Payable
Total Current Liabilities
Long-Term Debt (Certificates
from SGS - ISO 9001 , Logo
Registrations)
Long-Term Liabilities

Equity capital (3.75M each for

4 Partners in First year)
Shareholder's Equity

Retained Earning (Profit/Loss)

Total Liabilities &

Shareholder's Equity

Straight line depreciation is being applied on furniture of a value of Rs.30,000 p

straight line of about Rs.80,000 per year and 60,0000 per year respectively. Th
5million each respectively. These partners have an equal share in their profits a
Projected Balance Sheet

Lubricants Supplier
Amounts in PKR
2022 2023 2024
4,100,000 2,650,000 3,200,000
1,729,976 1,361,492 705,522
8,400,000 11,550,000 12,580,000
450,000 450,000 450,000
14,679,976 16,011,492 16,935,522

32,400 24,800 12,600

600,000 1,400,000 1,800,000
(80,000) (160,000) (240,000)
520,000 1,240,000 1,560,000
500,000 340,000 220,000
(60,000) (60,000) (60,000)
440,000 280,000 160,000
992,400 1,544,800 1,732,600

15,672,376 17,556,292 18,668,122

- - -
- - -
- - -
 100,000 150,000 180,000

100,000 150,000 180,000

15,000,000 16,400,000 16,900,000

15,000,000 16,400,000 16,900,000

572,376 1,006,292 1,588,122

15,672,376 17,556,292 18,668,122

ture of a value of Rs.30,000 per year. Depreciation on equipment and vehicle is also
000 per year respectively. The Four partners of the business have invested 3.7
n equal share in their profits and losses.
 RATIO ANALYSIS

Ratios Working 2022

1 Operating Profit Margin = Operating Income / Sales 8%

2 Return on Assets = Net Income / Total Assets 4%

3 Net Profit Margin = Net Income / Sales 6%

4 Gross Profit Margin = Gross Income / Sales 30%

5 Total Assets Turnover = Sales / Total Assets 57%

6 Pretax Margin = EBT / Sales 6%

7 Working Capital = Current Assets - Current Liabilities 14,679,976

8 Return on Equity = Net Income / Shareholders Equity 4%

YSIS

2023 2024

11% 13%

6% 9%

8% 11%
30% 30%

68% 80%

10% 13%

16,011,492 16,935,522

6% 9%
 INTERPRETATIONS

2022

This ratio reflects the percentage of profit a company produces from its operations before subtracting taxes and inte
the revenue left after accounting for operating expenses and cost of sales.

This indicates how profitable a company is in relation to its total assets. For 2022, the company earned a return of 4

The net profit margin measures how much net income or profit is generated as a percentage of revenue. For 2022, N
This ratio indicates how much is left with the company after accounting for cost of goods it has sold. For 2022, Gross

This ratio helps understand how effectively company is using its assets to generate sales. For 2022, sales for the yea

Return on equity signifies how good the company is in generating returns on the investment it received from its sha
profit of the investments.

2023

This ratio reflects the percentage of profit a company produces from its operations before subtracting taxes and inte
the revenue left after accounting for operating expenses and cost of sales.
This indicates how profitable a company is in relation to its total assets. For 2023, the company earned a return of 6
The net profit margin measures how much net income or profit is generated as a percentage of revenue. For 2023, N
This ratio indicates how much is left with the company after accounting for cost of goods it has sold. For 2023, Gross
This ratio helps understand how effectively company is using its assets to generate sales. For 2023, sales for the yea
Return on equity signifies how good the company is in generating returns on the investment it received from its sha
profit of the investments.

2024

This ratio reflects the percentage of profit a company produces from its operations before subtracting taxes and inte
the revenue left after accounting for operating expenses and cost of sales.
This indicates how profitable a company is in relation to its total assets. For 2024, the company earned a return of 9
The net profit margin measures how much net income or profit is generated as a percentage of revenue. For 2024, N
This ratio indicates how much is left with the company after accounting for cost of goods it has sold. For 2024, Gross
This ratio helps understand how effectively company is using its assets to generate sales. For 2024, sales for the yea
Return on equity signifies how good the company is in generating returns on the investment it received from its sha
profit of the investments.
Investment Plan B
Total investment in Stock Porfolio
Stock Portfolio 5,000,000
Total 5,000,000

Company Sectors Investment Portfolio % Investment Amount

HBL Banking 40% 2,000,000
OGDC Oil & Gas 30% 1,500,000
FFCL Fertizer 30% 1,500,000
5,000,000

Returns Calculation
P1 Po D1

HBL 176 9661% 10

OGDCL 149.6 8521% 6
FFCL 141.9 10224% 18
Investment Portfolio
r=(D1+P1-Po)/Po
0.92
0.826
0.562
WACC Calculation

Wa = 0.75
Ra = 0.06

Wb = 0.25
Rb 0.769

WaRa + WbRb = 0.237061