Assignment Taken

Annual operating plan for Financial year 2020-21

Case Understanding

Right now in whole world the pollution become major concern. Whole Universe right now looking for Sustainable Development Goals (SDGs). Some major sources of pollution is Diesel and petrol vehicles, Coal based power plant etc. Government has target that 30% of vehicle playing on roads should be E vehicle by 2030. Our Team member had research on Evs and decide to do business in Evs and green energy. We have 46 lakhs of own corpus and also we can arrange loan of 60lk at 16% interest. Our Startup is in Bangalore City and in our team we have 2 mechanical engineers, 1 electrical engi.,1 Computer science,2 Marketing person, 2 Management Post Graduate. We all team members has require 50k Rs. Per month and we have also develop a prototype of vehicle.

BCS Solution Summary

In India Renewable energy has wide scope because it has long time sun rays for solar energy, largest coastline for wind energy. So government also giving various incentive, subsidy for Green/Clean/Renewable energy. At current in India the proportion of E vehicles is very less and also infra is not so good. And cost of E vehicles is not affordable by Indian Families. But Future of E vehicles are bright because of Various Govt. initiatives like FAME Scheme, Tax incentive on purchase of Evs etc. We have started a private company named E Vech Savior (P) LTD. which basically provide E service on battery charging, battery replacement, Pickup the vehicle and unload to nearby garage, and if any excess of generation of electricity sold to DISCOM at government decided rate.

Solution

E Vech Savior Private Limited

CIN	E56894KR2020ETC121160
Status	Active
Company Category	Company Limited by shares
Company Sub category	Indian Non-Government Company
Company Class	Private
Business Activity	Commercial
Authorized Capital	1 Cr
Paid up Capital	46 lakhs
Registrar Office City	Bangalore
Registered State	Karnataka
Registration Data	11 Apr, 2020

 

The face Value of share is 5.

About of Our Company:

Looking at the focus of all Stakeholder towards environment and Government of India giving incentive for generation of green energy. Our company has taken a step ahead for providing service to Electric Vehicles and established with this objective on 11 Apr,2020.

Our Company basically provide E service on battery charging, battery replacement, Pickup the vehicle and unload to nearby garage, and if any excess of generation of electricity sold to DISCOM at government decided rate.

Initially we have solar system on our workstation which has capacity of 2 KW(kilo watt) power generation and 1 vehicle on which solar system has installed of 1KW capacity of power generation.

And apart from solar system we also have traditional of power sources.

Details of our business operating plan:

Equity Share Capital amount is 46,00,000 INR.

On Apr 2020 ,

we have installed solar system of 2KW( Cost of installation is 1,20,000) on workstation and on Vehicle number1(Owned by business) we installed 1 KW( Cost of installation is 60,000) of solar system and we hire 1 Telecalling( Salary 18,000 per month) and 2 Automobile Technician( Salary 15,000 per month)

On Jun 2020,

We take one more vehicle on lease (Lease rent is 15,000 per month) and installed solar system of  1KW (cost of installation is 60,000) and hire 1 Telecalling( Salary 18,000 per month) and 2 Automobile Technician( Salary 15,000 per month).

On Aug 2020,

We again take one more vehicle on lease (Lease rent is 15,000 per month) and installed solar system of  1KW (cost of installation is 60,000) and hire 1 Telecalling( Salary 18,000 per month) and 3 Automobile Technician( Salary 15,000 per month).

Business established expenditure - 6,00,000 INR

               This include expense on preparing of Documents which is 1,50,000 INR (Such as Memorandum of Association, Article of Association, other certificate requires).

               It also include payment to Charted Accountant (50,000 INR), getting patent of our vehicle design (2,00,000 INR).

               Opening Ceremony (50,000 INR), other Expenses (1,50,000 INR).

Information Technology development initial amount front loaded is 5,00,000 INR.

Initial Marketing Expenditure amount front loaded is 5,00,000 INR.

Solar system installation details:

Cost of installation calculated from https://solarrooftop.gov.in/rooftop_calculator and we purchase it on EMI and all details is given in attached PDF.

Solar System	Capacity	Cost
At workstation	2 Kw	120000
1st vehicle	1kw	60000
2nd Vehicle	1kw	60000
3rd vehicle	1kw	60000

All expenses are based on EMI. So please look at Loan Statement given in attached PDF.

Interest payment on this account as revenue expenditure and principle payment as capital expenditure.

Assets Purchase for traditional sources of Power cost 12,00,000.

Expenditure on Vehicle which are taken on lease 7,00,000 on each which. Total 14,00,000

After all this expenditure we have Cash on hand 4,00,000.

Summary of Expenditure:

Solar System expenditure on EMI Principle payment taken as Capital Expenditure and interest payment as a revenue expenditure.

Expenditure on Patent, IT development, traditional sources of Power, and vehicle modification is Capital Expenditure.

Initial Marketing Expenditure and business established (expect of patent) is deferred revenue expenditure.

Details of Monthly expenses for FY 2020-21

Salary of employee total for FY 2020-21 is 15,60,000.

Calculation:

                In Apr 1 Telecalling(18,000 per month) and 2 Automobile Technician (15,000 per month). So 1*18,000+2*15,000=48,000 and this is same for May also.

               In Jun 2 Telecalling(18,000 per month) and 4 Automobile Technician (15,000 per month). So 2*18,000+4*15,000=96,000 and this is same for July also.

               In Aug 3 Telecalling(18,000 per month) and 7 Automobile Technician (15,000 per month). So 3*18,000+7*15,000=1,59,000 and this is same for Sep to Mar.

Incentive Cost:

As per plan of HR Team I just taken 1500 INR per employee. And total cost for FY 2020-21 is 1,47,000 INR. 

Calculation:

                In Apr 1 Telecalling(1500 per month) and 2 Automobile Technician (1500 per month). So 3*1500=4500 and this is same for May also.

               In Jun 2 Telecalling(1500 per month) and 4 Automobile Technician (1500 per month). So 6*1500=9000 and this is same for July also.

               In Aug 3 Telecalling(1500 per month) and 7 Automobile Technician (1500 per month). So 10*15,000=15,000 and this is same for Sep to Mar.

Workstation rent 3000 per month.

Interest payment for Solar system:

It’s calculation is from loan statement which given is attached PDF. Here is only monthly interest expense incur is given.

Month				Apr	May	Jun	July	Aug	Sep	Oct	Nov	Dec	Jan	Feb	Mar	Total
Interest				1500	1481	1961	1935	2145	2376	2342	2309	2275	2241	2206	2171	24942

 

Lease Rent:

15,000 per month for each vehicle. So in Apr,May it is Zero and in Jun and July it is 15,000 per month and in Aug to Mar it is 30,000 for each month. Total for FY 2020-21 is 2,70,000.

Management Salary:

Our all 8 Management person has decided that we will not take any single penny in first four months. So management salary is started from Aug so 8*50,000=4,00,000 per month onwards. Total for FY 2020-21 is 32,00,000

Maintenance cost and running expense of vehicle, Maintenance cost of IT system, Solar System and marketing /Selling expense is given in table which is in attached PDF.

Other expense include cost of dress, coupon etc.

Our Service with Charges:

Battery Charging	6.5 Rs per unit
Pickup of Vehicle	150 Rs KM-Ton
Battery Replacement	MRP of Battery
Labour Charges if our Staff replace battery	Rs 50
Excess Power Sold to DISCOM	Rs 3.25 per unit

 

Note all amount given in Indian Rupees whether dollar($) symbol is mention or not. All figures are in INR.

Conclusion

We are actually providing E Service for battery charging, battery replacement, pickup service, etc. And we mostly use solar energy for our operations and help in fulfilling of infra Gap in Evs by which growth of Evs will more and pollution also reduced. Our Business serve solution for Evs. So that people can buy Evs without worry of it’s infrastructure.

Attached File Details