Sprint one

Assignment Taken

Financial plan for 1 year and expansion plan for further 4 years.

Case Understanding

In a country like India, Most of the people are dependent on fossil fuels based transportation. Government of India is aiming to promote electrical vehicle usage in the country. The government targets for 30% adoption of electric vehicles by 2030. There are some issues due to which people are less keen to buy EVs: which are: 1) India is not having as much of electric Charging stations, People are afraid of battery reliability. 2)Indians want economic product with long time durability, lack of Instances etc.

BCS Solution Summary

Through our startup we will help governments aim of electrifications by 2030 by manufacturing electric vehciles.

Solution

The Electric Vehicle Industry in India is low as compared to other countries but will be growing industry. The central and state governments have launched schemes and incentives to promote electric mobility in the country and some regulations and standards are also in place.

As per the data , the total number of registered vehicles in India is 230 Million and the market is growing continuously. The government target for 30% adoption of electric vehicles by 2030 will be majorly driven by the electrification of two-wheeler, three-wheeler, and commercial vehicles.

In the case study, we have given a corpus fund which is a personal investment by all the members of the team of Rs.46 lakh and have the option to take loan of 60 lakh if need arises at 16% fixed rate of interest.

Start up required coworking space for 8 people at a monthly rent of 3000/ workstation…

hence total amount for 8 people for a month :- 3000*8

total amount for a year :- 3000*8*12 = 288000

ANNUAL OPERATING PLAN  FOR FINANCIAL YEAR 2021-2022

Cost of 1 electronic car :- 700000 (4,00,000 for battery, 2,00,000 for design and 100,000 for other expenses)

In first year, we are producing 10 electronic car.

Cost of 10 car :- 7,00,000 * 10 = 70,00,000

We have taken loan for 50 lakh in the first year.

Total amount in the starting: 46 lakh+ 50 lakh= 96 lakh
 

 

Total amount at the start of year                         96,00,000

Less: Cost of 10 car                                             70,00,000

Amount left                                                          26,00,000

Less: interest on loan

(50,00,000*16%)                                                   800,000

Less: rent of workstation                                       2,88,000

Less: Salary of member (given 35000/

Member, as we have shortage of fund)                  2,90,000

Amount left                                                           12,22,000

Less: Amount spent by IT Dept.                                50,000

Less: Amount spent on Marketing                           3,00,000

Less: Amount spent on Training                              2,00,000

Amount left at the end of year                                   672,000

 

Now, Our selling price for 1 car is Rs. 13 Lakh

And we assume that we are able to sell 60% of car

Financial plan for Second year

Amount from sales: 13lakh * 6 (10 car*60%) = 78 lakh

And will take loan of another 10 lakh

And issue share in the market for 30 lakh

Total fund at the start of 2nd year is 78,00,000 + 10,00,000 + 30,00,000 + 672000 (amount left from the first year) :- 1,24,72,000

This year, salary will increase from 35000 to 36500.

In second year, we will produce 15 car.

 

Total amount at the start of year                          1,24,72,000

Less: cost of 15 car                                               1,05,00,000

Amount left                                                             19,72,000

Less: Interest (60 lakh* 16%)                                    9,60,000

Less: Rent of workstation                                          2,88,000

Less: Salary (36500*8)                                              2,92,000

Amount left                                                                4,32,000

Less: Amount paid on marketing                               1,00,000

Amount left                                                                3,32,000

Less: 5% Dividend paid to shareholders

(30,00,000*5%= 1,50,000)                                         1,50,000

Amount at the end of year 2nd                                      1,82,000   

 

For 3rd year            

 we assume that we are able to sell 12 car  

Sales : 13,00,000 * 12 = 156 Lakh

Amount at the start of 3rd year:- 156 lakh+1,82,000 = 1,57,82,000

Salary will increase from 36500 to 38000.

 

 

Amount in the starting                                             1,57,82,000

Cost of 20 car :-                                                       1,40,00,000

Amount paid                                                               17,82,000

Less: interest                                                                9,60,000

Less : Salary                                                                 3,04,000

 Less: rent                                                                    2,88,000

Amount left                                                                 2,30,000

Less: 1% dividend to shareholders                                30,000

Amount left at the end of third year                            2,00,000  

 

FOR 4TH YEAR:

we assume that we are able to sell 18 car

Sales :- 18* 13 lakh= 234,00,000

Salary will increase to 42000

Now producing 25 car

 

Amount at the start of year                                     2,36,00,000

Less: loan repaid of 35 lakh                                       35,00,000

Amount left with business                                       2,01,00,000

Less: Cost of 25 car                                                 1,75,00,000  

Amount left                                                                26,00,000      

Less: Interest (25 lakh* 16%)                                      4,00,000

Less: rent                                                                      2,88,000

Less: Salary                                                                  3,60,000

Amount left                                                                15,52,000

Less: Amount paid on marketing                                 5,00,000

Amount paid                                                               10,52,000

Less: 10% dividend paid to shareholder                      3,00,000

Amount left                                                                  7,52,000

 

FOR 5TH YEAR

we assume that we are able to sell 25 car

Sales: 25*13 lakh = 325 lakh

Amount paid at the start of the year :- 325lakh+ 752000 = 3,32,52,000

Producing 35 car this year

Salary increase to 50,000

Amount in the starting :-                                        3,32,52,000                                           

Less:- repaid remaining 25 lakh loan                        25,00,000

Amount left                                                             3,07,52,000

Less: cost of 35 car                                                  2,45,00,000

Remaining amount                                                     62,52,000 

Less:- Rent                                                                   2,88,000

Less:- Salary                                                                 4,00,000

Amount left                                                                55,64,000

Less: Amount paid on marketing                             10,00,000

Amount left                                                              45,64,000

Less : 10% dividend                                                   3,00,000   

Amount at the end of 5th year                                   42,64,000

Conclusion

we will follow above financial plan for this year and further years and by the time requirements is needed we will also alter some of the things.

Attached File Details