Professional Documents
Culture Documents
Zulqarnain Haider
5,00,000
Zubair Abdullah
5,00,000
Mohsin Ilyas
5,00,000
Najeeb Kazim
2,00,000
INCOME STATEMENT
HCC
Income Statements
For the year ended 31 December.
Note 1.
Note 2.
Note 3.
Note 4.
Sales Revenue:
Annual subscription revenue
Monthly visits revenue
Total sales
less: Cost paid ( for generating the revenue )
Gross profit
less: Operating Expenses:
Administrating Expenses:
Staff salaries
Employees salaries ( excluding wages )
Rent
Petty cash expenses
Stationery
Miscellaneous Expenses
Repair and maintenance
Utility bills:
Electricity
Telephone
Gas
2011
Amount Rs.
700,000
6,000,000
6,700,000
3,600,000
3,100,000
2012
Amount Rs.
905,625
7,762,500
8,668,125
4,657,500
4,010,625
2013
Amount Rs.
1,171,652
10,042,735
11,214,387
6,025,640
5,188,747
792,000
712,800
480,000
180,000
18,000
24,000
50,000
891,000
801,900
540,000
202,500
20,250
27,000
56,250
1,002,375
902,138
607,500
227,813
22,781
30,375
63,281
116,000
94,200
14,400
130,500
105,975
16,200
146,813
119,222
18,225
HCC
Income Statements
For the year ended 31 December.
Note 5.
Note 6.
Note 7.
Depreciation:
Office equipment
Furniture
Tools
Vehicle
Generator
Amortization of deferred costs:
Uniform
Renovation cost
Registration fee
Initial advertisement
Marketing Expenses:
Advertisement
Profit Before Tax
Less: Tax on Profit (5%, 17.5%, 25%)
Profit after Tax or Net profit
60,000
26,000
10,000
11,000
30,000
60,000
26,000
15,400
11,000
30,000
60,000
26,000
20,800
11,000
30,000
3,600
20,000
1,000
22,030
5,100
20,000
1,000
22,030
6,600
20,000
1,000
22,030
196,780
238,190
11,910
226,280
221,378
807,142
141,250
665,892
249,050
1,601,744
400,436
1,201,308
Note:
Particulars
2011
2012
2013
Net Profit
226,280
665,892
1,201,308
Less: Reserve
100,000
200,000
400,000
Total Profit
126,280
465,892
801,308
HCC
Profit and Loss Appropriation Account
For the year ended 31 December.
Distribution of profit
2011
2012
2013
Total profit
126280
465892
801308
Zulqarnain's share
31570
116473
200327
Zubair's share
31570
116473
200327
Mohsin's share
31570
116473
200327
Najeeb's share
31570
116473
200327
HCC
Partners Capital Account
For the year ended 31 December 2011.
Particulars
Cash Drawings
Balance c/d
Amount Rs.
500,000
1,500,000
Particulars
Cash/Bank
Amount Rs.
2,000,000
Total
2,000,000
Total
2,000,000
Particulars
Cash/Bank
Add: Share of profit
Total Cash/Bank
Less: Cash Drawings
Total Equity
2011
Amount Rs.
5,00,000
31570
531570
125000
406570
2012
Amount Rs.
406570
116473
523043
125000
398043
2013
Amount Rs.
398043
200327
598370
125000
473370
HCC
Balance Sheet
For the year ended 31 December.
HCC
Balance Sheet
For the year ended 31 December.
Note 8.
Note 9.
Note
10.
2011
Amount Rs.
2012
Amount Rs.
2013
Amount Rs.
Assets
Current Assets
Advance payment of building on rent
Cash in hand/Bank
Total Current Assets
90,000
878,760
968,760
90,000
1,173,682
1,263,682
90,000
2,010,920
2,100,920
Fixed Assets
Furniture
Generator
Office equipment
Tools
150,000
160,000
233,000
100,000
124,000
130,000
173,000
144,000
98,000
100,000
113,000
182,600
65,000
137,000
54,000
142,400
43,000
147,800
571,000
482,600
388,800
Other Assets
Deferred Costs
Initial advertisement
Renovation cost
110,150
100,000
88,120
80,000
66,090
60,000
Registration fee
Uniform
Less: Amortization of deferred costs
Total Other Assets
5,000
18,000
46,630
186,520
4,000
21,900
48,130
145,890
3,000
24,300
49,630
103,760
Total Assets
1,726,280
1,892,172
2,593,480
Vehicle
Less: Accumulated depreciation on fixed
assets
Total Fixed Assets (net of depreciation)
Note
11.
HCC
Balance Sheet
For the year ended 31 December.
100,000
200,000
400,000
100,000
300,000
Total Reserve
300,000
700,000
Owners Equity
Zulqarnain's share
406570
398043
473370
Zubair's share
406570
398043
473370
Mohsin's share
406570
398043
473370
Najeeb's share
406570
398043
473370
Total Equity
1,626,280
1,592,172
1,893,480
1,726,280
1,892,172
2,593,480
HCC
Cash Flow Statements
For the year ended 31 December.
2011
2012
2013
Amount Rs.
Amount Rs.
Amount Rs.
Operating Profits
226,280
665,892
1,201,308
Add: Depreciation
137,000
142,400
147,800
46,630
48,130
49,630
409,910
856,422
1,398,738
(54,000)
(54,000)
(7,500)
(7,500)
(500,000)
(500,000)
878,760
1,173,682
1,173,682
2,010,920
(90,0000)
319,910
(150,000)
Generator
(160,000)
Office equipment
(233,000)
Tools
(100,000)
Vehicles
(65,000)
Deferred Costs:
Initial advertisement
(110,150)
Registration fee
(5,000)
Renovation cost
(100,000)
Uniform
(18,000)
2,000,000
Drawings
(500,000)
878,760
Number of Years
0
1.
2.
3.
Pay Back Period = year before fully recovery + (unrecovered cost at the start of year/cash flow
during the year)
= 1 + 52,442/1,173,682
= 1.4 years
STATISTICAL ANALYSIS
Sr.
1.
2.
3.
4.
5.
6.
7.
8.
9.
Services
Electronics
Electrician
Plumbing & sanitary fittings
Carpenter
Mechanics
Computer (software & hardware)
Interior decoration & maintenance
White wash
Structural
Total
Percentage %
20%
20%
15%
10%
10%
10%
5%
5%
5%
100%
Months
1
1
1
1
1
1
1
1
1
No. of Employees
2
2
2
2
2
2
2
2
2
18
Visits
96
96
72
48
48
48
24
24
24
480
The visits included in above statistics are made for 200 members with 9 employees in first
month only but the percentages (members need firm services in a month) used in it will also be
followed for rest of the year. Because as per need analysis such percentages show how many
members out of 1, 000 need our services in a month and for each service two (2) employees are
hired from 2nd month. For every 200 members there are 480 visits considered monthly and for
1,000 members 24,000 visits are considered annually.
Subscription Revenue
700
No. of members
200
400
600
800
1,000
1,000
Total
Members
1,000
Total
Visits charges
250
250
250
250
250
250
Total
120,000
240,000
360,000
480,000
600,000
4,200,000
6,000,000
24,000
700,000
6,700,000
Amounts Rs.
100
80
70
250
Amounts Rs.
80
70
150
No. of members
1st
2nd
3rd
4th
5th
6th 12th
Total Annual Visits &Cost
200
400
600
800
1,000
1,000
480
960
1,440
1,920
2,400
2,400
24,000
Visits
costs
150
150
150
150
150
150
Total
72,000
144,000
216,000
288,000
360,000
2,520,000
3,600,000
No. of Staff
1-CEO
1-Accountant
2-Operators
Total
18-Employees (including daily wages)
12,000 each
Total salary=12,000
Per visit Commission paid = Rs.80
if 2 visits are conducted by the employee then,
1st month = 2 visits*wages80*30days = Rs.4800
12, 000-4800 = Rs.7, 200 so this extra amount over wages will be paid by the firm in the
form of salary in order to make it Rs.12, 000.
From the 2nd month 9 more employees will be hired in order to meet visits burden of
increasing customers. So up to first five months salary paid by firm to 18 employees is Rs.
410, 400. Up to next seven months salary paid by firm to 18 employees is Rs.302, 400.
Total salary paid by firm (excluding daily wages) = Rs. 712, 800
Sr.
1.
2.
Note 4.
4.
5.
6.
Expenses
Rent
Petty cash
Utility Bills:
Electricity
(summer)
(winter)
Telephone (land line7,000+ net charges850)
Gas
Monthly Rs.
40,000
15,000 (Rs.500 daily)
Annually Rs.
480,000
180,000
13,000*7months= 91,000
5,000*5months = 25,000
7,850
1,200
116,000
94,200
14,400
Estimated
life(years)
2011
2012
2013
Furniture
26,000
26,000
26,000
Generator
30,000
30,000
30,000
Office equipment
60,000
60,000
60,000
Tools
10
10,000
15,400
20,800
Vehicle
11,000
11,000
11,000
Total
Companies Ordinance 1984 recommends deferred costs should be amortize at 20% rate through
straight line method. It is also the general practice of business organizations. Amortized amount
would be charge to income statement annually.
Deferred cost Amortizations
Initial advertisement
Renovation cost
Registration fee
Uniform
Total
Rate
20%
20%
20%
20%
2011
22,030
20,000
1,000
3,600
46,630
2012
22,030
20,000
1,000
5,100
48,130
2013
22,030
20,000
1,000
6,600
49,630
Note:
Uniforms are purchased for employees of equal amount Rs.7,500 in next years and also
amortized for 5 years with 20% rate for following two years.
Costs Rs.
3, 500
4,000
17, 000
7,650
45,000
16,800
10,200
6,000
110,150
306,930
84,000
46,000
16,800
36,000
6,000
3,500
4,480
196,780
Furniture
Costs Rs.
40,000
52,000
33,000
10, 000
8, 000
7, 000
Total cost
150,000
Office Equipments
Costs Rs.
100, 000
1 Water cooler
30, 000
23,000
80, 000
Total cost
233,000
Services
1.
Electronics
2.
Electrician
3.
Plumbing & sanitary fittings
4.
Carpenter
5.
Mechanics
6.
Computer (software & hardware)
7.
Interior decoration & maintenance
8.
White wash
9.
Structural
10. Other tools
Total cost
No. of Employees
2
2
2
2
2
2
2
2
2
Total Rs.
12,000
12,000
10,000
14,000
10,000
8,000
8,000
4,000
10,000
12,000
100,000
Specifications
1 Honda 70cc
Power 20kw, Company Nekata
25 uniforms (Rs.720 each)
Costs Rs.
65,000
160,000
18,000
243,000
Renovations
Ceiling
REL tag on reception wall
Paint
Decoration material
Curtains
Total cost
Costs Rs.
20, 000
20, 000
50, 000
7, 000
3, 000
100,000
Key Assumptions
Customers increase annually
Subscription fee increase with
inflation
Sales increase with growth &
inflation
Cost increase with growth &
inflation
Expenses increase with inflation
Advertisement increase with
inflation
Tax Rate
Depreciation method (annually)
Salaries
Amortization (annually)
Employees increased
Uniform cost (1)
Capital Accounts Method
Drawings
Reserve
Year 2012
15%
12.5%
Year 2013
15%
12.5%
15% + 12.5%
15% + 12.5%
15% + 12.5%
15% + 12.5%
12.5%
12.5%
12.5%
12.5%
17.5% on profit
Straight line method
12.5%
20% Straight line method
9
Rs.750
Fixed Capital Method
Rs. 250,000
Rs. 200,000
25% on profit
Straight line method
12.5%
20% Straight line method
9
Rs.750
Fixed Capital Method
Rs. 250,000
Rs. 400,000
Management Risks
Marketing Risks
Natural risks
Macroeconomic risks
Financial risk
Credit risks
liquidity risks
Operating risk
Personnel risks