Assignment TakenFinancial Planning, Budgeting, Risk Analysis, Development of Cash flow, Payroll, Taxation etc.

Case UnderstandingThe “AIRWAY DELIVERY” courier service provider company, with targeted with PAN India locations and delivers to most pin-codes. As per Company’s next step for business advancement, the Company's Board has decided to venture into 'Hyper Local Delivery space' and want to conduct local delivery through drones and we have access to all necessary permissions. Our team was successful in testing deliveries. Exploring the concepts of courier services few initial deliveries were experimented such as food, Pharma & Internal Local deliveries with a hope in exploring more business areas for cost-effective cargo deliveries. As a proof of concept we received valuable feedback by Initial Users in terms of time saving and displacement via traffic free innovations in spite of today's busy city roads. Initially the company has decided to start this venture as "Short Range Drone Based Services" accordingly company Intended for building an end-to-end Drone Operations & Management Platform through which a rapid scaling of business can be achieved. Inspired by the radical innovation in this sector, our company wants drone services to add value to end users and as it is an extension of company's current services portfolios.

BCS Solution SummaryPlan out & develop the Financial Planning & budgeting for next fiscal Year Including Financial support, accounting report, risk analysis an end-to-end Drone Operations & Management Platform through which a rapid scaling of business can be achieved. Also providing support to the inter-functional department.

Solution

Finance Department has  plan to Implement the following Financial functions.

 

1. Financial Transparency and planning

 

Financial transparency shows how accumulated costs are transferred to service consuming fees and how actual correlate to plans. Financial planning ensures:

1. Reserving future cash flow to business technology elements (budgeting)
2. Measuring the actual spend by business technology elements and comparing actuals to planned costs to identify deviations and suggest corrective actions (controlling)
3. Allocation of business technology costs to business units and -capabilities as service fees (invoicing)

 

1. Financial Feasibility:

Financial feasibility provides feasibility analysis about propose, up-coming and complete development initiatives and feasibility of on-going services throughout their life cycle by assessing:

1. Financial feasibility of proposed development initiatives with the demand and development portfolio steering. Analysis is based on a business case with payback and/or net present value calculation (Pre-feasibility)
2. Financial feasibility of an on-going development initiative with the project steering. Analysis will help to make go/no-go decisions to identify initiatives that should not be continued even with high sunk costs
3. Financial feasibility of completed initiative by measuring the realised costs and business benefits and comparing them to the previously approved business case. The analysis is important for lessons learned purposes (Post-feasibility)

1. Resource & Asset Management:
2. Forecast of Demand.
3. Fulfill the Demand.
4. Digital Support.
5. Risk division support.
6. Taxation & Compliance
7. Providing sustainable cash support.
8. Investment & Tracking of cash system.
9. Budgeting and taxes.
10. Managing liquidity, or ready access to cash.
11. Financing large purchases.
12. Managing Risk.
13. Investing Money.
14. Communication and record keeping.

 

 

 

 

 

 

 

 

 

 

 

 

 

Planning for FY 21-22 with Recurring Expenditure & Budget
SL No.	Particular	Quantity	Cost / per unit (INR)	Remark
1	Office Rent	12	30000	3,60,000
2	Short Range Drones	4	1,25,000	5,00,000
3	Long Range Drone	1	4,00,000	4,00,000
4	Qualified Drone Operators	4	50000	24,00,000
5	Management Team	5	1,00,000	60,00,000
6	Software	1	25,00,000	25,00,000
7	Software Development Team	2	70000	16,80,000
8	Support Staff	4	20000	9,60,000
	TOTAL OPERATIONAL COST FOR FY 21-22			1,48,00,000

 

Courier Charges:

Category of Couriers	Courier weight	Price
A	0.1 grams to 500 grams	60 Rs.
B	501 grams to 1 Kg	80 Rs.
C	from 1.01 Kg to 5 Kg	100 Rs. /Kg
D	5.01 Kg to 10 Kg	110 Rs./Kg

 

Booking of Packages with price rate projection:

SALES TARGET TO REACH THE DAILY BUSINESS				BOOKING AMOUNT Collection
Category of Couriers	Courier weight	Price	Unit Booking(min)	Daily	Monthly with 25 Days	Yearly
A	0.1 grams to 500 grams	60	5,000	3,00,000	75,00,000	9,00,00,000
B	501 grams to 1 Kg	80	2,000	1,60,000	40,00,000	4,80,00,000
C	from 1.01 Kg to 5 Kg	100	2,000	2,00,000	50,00,000	6,00,00,000
D	5.01 Kg to 10 Kg	110	1,000	1,10,000	27,50,000	3,30,00,000
TOTAL REVENUE COLLECTION						23,10,00,000.00

 

ConclusionAIRWAY DELIVERY- As a Finance Department need to be conduct day-to-day Cash in flow & out flow activities, Daily need of liquid cash, getting daily cash report over the selling & booking of packages from the sales team, support to administration department, HR Department, IT Department, Purchase Department with need of financial cash expenditure. Also responsible to generate the income through the investments. To going with plan as shown, will provide the company to reach the break-even in the first financial year.