Executive Summary

Plastic bags which are using to carry a good which is the biggest advantage of the plastic
bags and thousands of tons plastic bags are produced during a year. But there is not a
single method to safely dispose off the used plastic bags. Plastic bags are dumped into the
earth. Plastic bags cannot be resolved in the land and convert fertile or normal land into
the barren land. Creating pollution and diseases due to pollution in our country
There is a suitable way to resolve this social problem is to recycle these plastic bags.
Which is in the form of small plastic particles this is also called smeca. ar!et si"e of
smeca plastic is ##$%&'' ($&) of *&'%'''+. ar!et is growing at the rate of #,.&) per
annum. ,') of the mar!et demand is fulfilled by the local firm and $') of the smeca
mar!et is served by the imported smeca.
The competition is on the basis of price because there is not any differentiation in the
-uality of smeca plastic. There are approximately #, firms in the .u/ranwala which are
in the business of recycle plastic bags. There local firms are doing business on the
traditional basis.
0n the next 1years if the local manufacturers didn2t build there capacity then there will be
a huge gap between the demand and supply of the smeca plastic. There are a large
number of suppliers and our expected customers situated in the .u/ranwala region.
ar!eting department is concerned we want to build our brand in business to business
mar!et% which is a new concept in .u/ranwala. We2ll mar!et our product to .u/ranwala
and .u/rat region in the beginning. 3uality product and 3uality service will be our main
motive. We2ll promote our product with the help of sales officers.
We2ll produce our product at the capacity of 4'!g5hour at the initial stage although at the
initial stage if we start our production at #4'!g5hour level then still there is a huge unmet
demand. There are 4 steps in the plastic bags recycling process. 6ocation is decided
inside city of the .u/ranwala at 7owshera 8oad. 9wan choc! is $!m away from us.
:rom which we can easily !eep connected with the suppliers and our customers as well.
;uman resource plan consist of our organi"ation structure% span of control and /ob
description < /ob specification of our employees. Performance appraisal system is also
implemented to !eep motivated our employees. =rgani"ational structure is simple as we
are starting our business at the starting level.
:inancial plan consist of pro/ection balance sheet% 0ncome statement% and Cash flow
statement. To start up this pro/ect there will be &.#4 illions 8upees. :rom which ,')
will be invested by our partners and $') will be borrowed from the ban!. 9t the rate of
#*) per annum.
Page 1
9s we described above that there is $') gap in the demand and supply of the smeca
which is increasing at the rate of #,.&) per annum. So there will be a chance for us to fill
this gap.
0t should be notice that due to high growth rate in this mar!et we can not only achieve the
brea!>even in the second year of our business life but also to earn a reasonable profit of
8s. ?#4?&?.4 in the next year and this profit increasing at the rate of #$) per annum%
which will increase up to almost $') per annum% with maximum capacity utili"ation.
Page 2
0ntroduction
Plastic:
9 plastic is a type of synthetic or man>made polymer@ similar in many ways to natural
resins found in trees and other plants.
Plastics are used because they are:
#. 9ttractive
$. ;ard
1. Soft < 8ubbery
*. Easy to Clean
&. :lexible
4. .ood insulators of heat or electricity
A. 6ight weight
,. ;ygienic
?. Easy to Shape < Color
#'. Economical
The use of plastics is increasing at all times as they replace materials such as metal%
wood% paper% ceramics and glass in a wide variety of uses. ore over the overall demand
and local supply gap that prevails in the market remains largely unmet which also
provides opportunities for entering in to this business
Why 8ecycling of Plastic Bags
Plastic shopping bags are usually made of polyethylene. ost often these bags are
intended for a single use to carry items from a store to a home% reuse for storage or trash
is common. ;eavier duty plastic shopping bags are suitable for multiple uses as shopping
or storage bags.
Introduction:
All of our high-quality, reusable bags will help you eliminate hundreds, if not
thousands, of those choking our planet. Its an easy way to do your part.
arth is wearing rags because of plastic bags where!er we see, we see the plastic
bags.
"olor of the field is multi color now, farmers are so sad because of plastic bags.
Social Issues:
0f we cannot say B7=C to the plastic bags at least we can help to save our souls and all
the victimsD animals% marine life% birds% environment as a whole by recycling the product
so that it cannot be /ust left unseen but instead it should be used by the other businesses
which can further ta!e a positive use out of it. 9s several attempts made to ban the plastic
Page 3
bags /ust went in vein therefore attempts now should be made to recycle the product as it
can further be used in the manufacturing of other products.
Plastic bags have been widely used for carrying up one2s luggage in a number of ways
plus it is also normally used for pac!ing the items and is the principal means of bringing
home groceries and other shopping items. Eenying the fact that the high production and
high usage of these plastic shopping bags is causing a dire threat to the environment
comprising marine life% vegetation% and gives an over all negative impact on our
surroundings as the polyethylene bags remain un>dissolved for #''' years and are
damaging the urban sewerage system% besides causing environmental pollution.

0t has been banned several times in Pa!istan but due to the third world country they are
more concern about the revenues generated from the industry and the overall economic
impact.
Billions of plastic bags are choking our planet: 9ll of these FfreeF bags ultimately cost
both consumers and the environment plentyD
Each year billions of bags end up as ugly litter.
Eventually they brea! down into tiny toxic bits polluting our soil% river% la!es and
oceans.
Production re-uires vast amounts of oil.
Countless animals needlessly die each year.
Polythene bags banned in Pakistan:
0t may be noted that proposed ban was to be applied to the production% import% mar!eting%
sale% display% storage% distribution and carrying of the bags% and there were strict penalties
for violators. But% unfortunately% the initiative to ban plastic bag could not ta!e off.
0t is learnt that the influential manufacturers% mar!eters% sellers% distributors and carriers
of the bags played their role in slowing down the process of banning the plastic bags.
9ccording to estimates around 1 million people are directly and indirectly related to
polythene bag manufacturing and they feared uncertain future if ban was imposed on
plastic bags.
Problems being faced:
9ccording to Environment Protection Eepartment Pun/ab% everyday% millions of plastic
shopping bags are thrown away in cities% towns and villages. 0t said that Bonly #'>#& per
cent is put in dustbins% the rest ends up in drains% sewage channels and open spaces.
Eighty per cent of the drains in the country are bloc!ed because of polythene bagsC.
B0n a country prone to severe health ha"ards% the bloc!ing of drains by polythene bags
severely exacerbates the problem. Besides% bloc!ed drains force sewer water into
drin!ing water supplies. This in turn leads inevitably to water borne diseasesC.
Page 4
0t cannot be overloo!ed that about #& animals including tigers died at the "oo since last
year. Whereas ;undreds of thousands of sea turtles% whales and other marine mammals
die every year from eating discarded plastic bags mista!en for food. Pa!istan has a
serious problem with waste.
With very limited waste collection services and virtually
no public bins% waste tends to be disposed off on the
streets. Erains are essentially open sewers% cluttered and
bloc!ed with rubbish especially non>biodegradable waste
and particularly plastic bags.
The disadantages of Plastic bags:
The following disadvantages have also been identifiedD
Plastic bags are made of petrochemicals% a
nonrenewable resource.
Plastic bags are flimsy and often do not stand up as well as paper or cloth.
When disposed of improperly% they are unsightly and represent a ha"ard to
wildlife.
Plastic bags% conventional or FbiodegradableF% do not readily biodegrade in a
sanitary landfill% (but neither does paper due to lac! of oxygen+.
Plastic bags can cause unsupervised infants to suffocate.
6ittered bags may clog roadside drains% which could cause street flooding during
heavy rainfall.
Taking a round of !u"ran#ala:
6et2s don2t go so far. ove out of the .0:T Gniversity and ta!e a left turn. The big
empty fields are badly covered with the plastic bags. That ma!es the whole land infertile
as the plastic bags does not dissolve and inhibits the growth of the land as it covers on the
land ma!ing it disconnected from the air and water.
Thus it leaves out an infertile land at the end. The huge empty fields thus gets wasted no
implantation can ta!e place. The whole of the rubbish is dumped there and no authority
Page $
loo!s after the matter and it2s /ust a glance of one place and as you move ahead the big
empty fields on either side of the canal is occupied by the plastic bags.
%hallenges faced in our &ecycling business:
The high volume to weight ratio of plastic means that the collection and transport
of this waste is difficult and expensive
There are often high levels of contamination in plastic ma!ing the recycled less
usable% especially where food products are involved
There is a very wide range of plastics in use and segregation is difficult
The mar!et for using recycled plastic is underdeveloped.
Page '
=ur Business odel
(ame: ... Enterprises
Industry: Plastic 8ecycling 0ndustry
)ocation: Plot 7o. #&% Street ;a/i Bashir% 7ear 9wan Cho!%
7owshera 8oad% .u/ranwala.
%ontact Information: :axD '&&>*#'1$1$
TelD '&&>*$'1$1$
CellD '1#$>*1'1$1$
EmailD ...Hgmail.com
*ision:
We are basically a social concern manufacturing business that helps to reduce the
pollution problems in our surroundings saving many victims and environment by
recycling of the plastic bags. =ur products are highly demanded and we see ourselves
standing on the top in the near future by providing best services.
+ission:
=ur mission would be to use the best technology that will help us to wor! more
efficiently and effectively with best distribution facilities that will aid the speed of
delivery with well established and long term relation ships with all the supply chain
partners.
,ur %ore *alues:
We are committed to honesty% accountability and responsibility in all aspects of our wor!
and to serving the public through volunteerism and community service. To !eep our
country clean from the pollution of plastic bags is our basic theme behind our business.
any people start businesses for the profit motive so are we. But we are more incline
towards doing something for our country and for our society. This is !ind of business
which is socially and economically favorable for our country.
,ur %oncern -Problem #hich #e #ant to sole.:
So the main goal for ta!ing the initiative for this business is mainly to save this planet
from the !illing effects of these plastic bags. To open up a forum for the society
development and to encourage people to cooperate by not only focusing only and solely
on the business earning but to educate the people on the usage of plastic bags. 9s plastic
bags also have certain advantages but once the benefits are served now not to exploit the
product further for its disadvantages.
9s both of the aspects the advantages and the disadvantages are highlighted already so
the use of the plastic bags should follow up in a way li!e the people who are the users of
the plastic bags can !eep the plastic bags with them for further use if they are in a
condition that they can be reused again. They should not throw them or dump them in
Page /
water% land% streets% etc but if don2t intend to use them they can simply collect them and
deposit them with the municipal committee to avoid further problems associated with the
product. :or this we will develop a strong mar!eting campaign along with our business
and give a public message to the whole society.
oreover then demand in growing day by day% and supply from the local firms are not
sufficient level. So our country has to import smeca. This is available in the mar!et at
more prices% because normally mar!et price of smeca is 8s. $A per !g and mar!et price of
imported smeca is 8s. $? per !g. This also increases the cost of the production. So by
tapping into this mar!et we provide solution for the problems of the society and economy
of this country.
Product:
Basically we are into the business of plastic recycling% after recycling the plastic bags we
get the plastic. The final shape of our product is plastic dana% which is so called SEC9
in the mar!et. Possible uses of smeca are given below.

Page 0
SW=T 9nalysis
Strength:
9vailability of labor is much easier due to our presence near the awan choc!.
Sophisticated production system.
0ncrease in demand for local and national manufacturer.
6ocation inside the city is also favorable for us to get connected with out
customers and suppliers easily.
1eakness:
The industry is not centrali"ed and geographically dispersed.
Supplier has more bargaining power in this industry.
There is low rate of innovation in this industry.
Iery minimum level of exports in this industry.
6oad shedding can create problem for us.
,pportunity:
With the passage of time% most appliances predominately being made by plastic.
.lobali"ation and free trade agreements can help for export.
7ew innovative product can be offered to mar!et later on.
Strong national economic indicators wor!ing for benefit of industry. We can
easily capture mar!et share because $') of the raw material is imported from the
different countries.
We can serve the society and economy of the country both at the same time.
There is chance for us to expand our business because plastic industry at its
growth stage.
We can go for the forward integration in the near future.
We can tap into the business of plastic recycling as well.
There is a chance to clean the .u/ranwala then the whole country from the plastic
bags which are creating pollution.
Threat:
:ree trade and globali"ation is also a big threat for the industry.
Big giants are dominated in local mar!ets.
Threat of customers who can switch because of multiple options.
6arger firms can offer high standard -uality within same price.
Page 2
ar!et Situation
9s we !now our customers are the firm that uses plastic dana (smeca+ to manufacture and
pac! their products. There are almost 4''' firms in Pa!istan which comes into the
business of plastic manufacturing. oreover 4''%''' people are directly or indirectly
connected with the plastic manufacturing business.
4') of the firms are situated in the
Pun/ab% 1') of the firms are situated
in Sindh% A) of the firms are situated
in 7W:P% and only 1) of the firms
are situated in Balushistan.
Users of Plastic Dana

PUNJAB 3600
NWFP 180
SINDH 1800
BALOHIS!AN "#0
!O!AL 6$000
The total consumption of raw material used in the plastic industry in the country is
around *&'%''' tons. :rom which almost $&) of the *&'%''' tons is the mar!et of smeca
plastic dana% smeca plastic dana is produced from the recycling of the plastic bags.
9ccording to estimation the mar!et si"e of the smeca is ##$&'' tons per annum.
%ar&et si'e 450,000 tons
s%eca %ar&et si'e 25% 112500 tons
%ar&et (ro)t* 18.5% per annum
%ar&et s*are of local %an+fact+rers 80%
i%,orte- s%eca .,lastic -ana/ 20%
,rofit %ar(in 16%
$') of the smeca imported from the different countries% including G9E% 0ndia% and
others. ,') of the mar!et demand fulfilled by the local firms which are manufacturing
smeca.
There are approximately #, firms in the .u/ranwala region which are manufacturing
smeca and almost more than #4* firms in the Pun/ab which are in the business of smeca.
9nd the mar!et share of each firm is estimated &1*4 tons per year.
Page 13
o%,etitors in 0+1ran)ala 18
o%,etitors aro+n- central P+n1a2 164
!otal co%,etitor in central P+n1a2 18#
%ar&et si'e of central P+n1a2 3"$000 tons
%ar&et s*are 24 eac* co%,etitor #56 tons
%ar&et s*are of 0+1ran)ala #56718 8 33"6 tons
ar!et is price sensitive so there is a stiff competition among the firms which are
manufacturing smeca on the basis of price% because there is not any well established
branded supplier of smeca% most of the businesses are operating on traditional basis. 7o
uses of latest technology and you2ll se not any supplier whose operations are
sophisticated designed.
9s we !now mar!et is price sensitive so every firm has to sell the smeca at a certain
price. We can say there is perfect competition in the smeca mar!et of .u/ranwala.
.rowth rate of smeca plastic industry is depend on the growth rate of those firms which
are using smeca as a raw material. The growth rate of the smeca mar!et is accounted for
#,.&) per annum which is huge. ore and more plastic products are introducing in the
mar!et and people are comfortable in using plastic products.
Page 11
9ears #008 #005 #010 #011 #01#
!ons ,er 4ear .1 tone 8 1000&(/
%ar&et si'e of Pa&istan 112,500 132,806 156,778 185,076 218,482
%ar(in for ne) co%ers 20,306 23,972 28,298 33,406
:ar&et si'e of central P+n1a2 .60;/ 67,500 99,605 117,583 138,807 163,862
%ar(in for ne) co%ers 32,105 17,979 21,224 25,055
%ar&et si'e local ,ortion 54,000 79,684 94,067 111,046 131,089
%ar&et si'e i%,ort ,ortion .central
P+n1a2/
13,500 19,921 23,517 27,761 32,772
%ar&et si'e of 0+1ran)ala 4266 5036 5945 7018 8285
o,,ort+nit4 for fir%s to ser<e t*e local
%ar&et
631 660 505 1063 1#66
o,,ort+nit4 for ne) co%ers to ser<e
i%,ort %ar&et
1067 1259 1486 1755 2071
total o,,ort+nit4 for ne) co%ers 1698 2029 2395 2828 3338
if )e enter at ca,acit4 of 60 = 160&(>*o+r 18" 300 3"6 365 365
re%ainin( %ar&et si'e ""6 "60 363 60" 858
9s mar!et trend is upward because the #,.&) growth is a huge growth rate% which means
demand of the plastic smeca is increasing and either the old firms has to build up there
capacity or country has to import more smeca or there is chance for the new player to
come and serve the unmet demand of the mar!et.
9bove table elaborates that there is a .9P exist in the mar!et between the demand and
the supply. This .9P filled by importing smeca from the different countries% moreover
by building more capacities. 0mport of smeca is $') of the whole smeca plastic mar!et
and mar!et is growing at #,.&) as the .9P is increasing between demand and supply of
the smeca mar!et there is chance for the new firm to come in the mar!et and serve it.
ar!et is price sensitive because there is not any reasonable difference on the basis of
-uality of the product al most every manufacturer is producing at the same -uality. Even
imported material is also at the same -uality level. So if we enter into the mar!et with the
capacity from 4'!g to #4' !g per hour. We can sell all of our produced smeca to this
mar!et.
But we cannot go beyond the limit of #4'!g per hour because our raw material will limit
us at this production level. 0t is very difficult to get raw material for operating beyond the
level of #4'!g5hour.
So there is a favorable time for the new comer to enter into this mar!et.
Page 12
0
500
1000
1500
2000
2500
3000
3500
1 2 3 4 5 6 7 8 9 10
Unmet demand
Capacity
Remainin
!ar"et
ar!eting Plan
+arketing ,b"ectie:
To recogni"e as respected plastic raw material (smeca+ supplier in the mar!et of
central Pun/ab.
To provide the speedy delivery of smeca to the plastic manufacturer.
To capture the reasonable mar!et share of the mar!et% by mar!et penetration
strategy.
To position as a consistent in delivery of standardi"e -uality smeca.
To provide branded smeca to the mar!et% and introducing branding in smeca in
this region.
To be recogni"e as the firm who is operating for the betterment of the society and
then profits.
To provide our customers better value for their money.
Segmentation:
The plastic manufacturer mar!et is divided into following segments@ the basis of
segmentation is the nature of business that our customers are doing% !ind of benefits that
they sought in out product.
Plastic Sheet anufacturers.
Plastic ;ome 9ppliances.
Plastic :urniture.
Pac!ing 0ndustries.
Plastic Eecoration Pieces.
Plastic Gtensils anufacturers.
=ther Plastic anufacturer. (who use smeca as their secondary product+
Targeting:
location Smeca use for industry
Plastic Sheet
+anufacturers
.u/ranwla% 6ahore%
.u/rat
Plastic sheet
manufacturing which
is used for pac!ing
the product.
Plastic Sheets
0ndustry
Plastic 4ome
5ppliances
.u/ranwala% 6ahore Plastic used as a
secondary product%
consider as a raw
material to
manufacture some of
the parts of product.
;ome 9ppliances
0ndustry
Page 13
Plastic 6urniture .u/anwala Plastic :urniture
industries used smeca
as manufacture some
parts of their
products.
Plastic :urniture
0ndustry
Packing Industries 9ll Pun/ab Smeca used in these
companies to prepare
plastic sheet% and to
pac! their products at
their company.
9ll 0ndustries which
produce their own
plastic sheets to pac!
their products

Positioning:
We want to position our product as a -uality product% and want to be the first choice of
our customers% due to the speedy delivery% consistent in -uality% < providing best service
along with and after the sale of the product.
This positioning shall be achieved with help of positive word of mouth% personal selling
and !eep in touch with the customer to better understand their needs% to maintain a
friendly relationship we also send gift to our customers% retailers as well.
* P2s
Gnder the following main heads we2ll describe our strategies to achieve our mar!eting as
well as business main ob/ectives.
Product:
Price:
Prices will be e-ual to our competitors but we are intended to provide more for the same
strategy which at the competitive price% we provide more value in the same price. We can
also call it penetration prices because at the initial stage our basic aim is to capture the
mar!et share as soon as possible.
But according to the mar!et situation the large portions of the mar!et demand is unmet
and mostly satisfy by importing the smeca from different countries.
Product
%ost Per kg
-&s7.
Pack Si8e %olor Shape
smeca $&>$A $&!g J *'!g White < others 9ny shape
Page 14
Plastic Sheet +fg7
9 Packing
%ompanies
Plastic 6urniture
9 Plastic 4ome
5ppliance
!eneral +arket
Pack Si8e *'!g $&!g $&!g > *'!g
%olor 9ny Color White < Brown 9ny Color
Shape Small < edium
Particles
Small Particles Particles in any
shape
Place:
Placement strategy shall be intensive@ we need to deliver our raw materials as far as
possible in our region of central Pun/ab. But we need to focus on two main cities in
which growth is exceptional% because of natural cluster of plastic manufacturer in
.u/ranwala < 6ahore.
:irstly we limit our distribution of smeca to the 1 cities only which are .u/ranwala%
.u/rat and 6ahore% there are a lot of firms which use smeca as their raw material to
manufacture their primary product% or to manufacture plastic sheet to pac! their products.
0ntensive distribution system will provide our product a chance to be sold% because the
smeca mar!et is price sensitive usually decision about purchasing products made on price
comparison and the products which are available to the customers have better probability
to be sold.
!u"ran#ala +arkets:
.ondalanwala 8oad
Khiali Bypass
Companies which use smeca as their raw material are
mostly situated at the ..T 8oad.
!u"rat +arkets:
Shahdola 8oad.
Promotions:
Promotional activities are divided into two main categories which are 9bove the 6ine
9ctivities (9T6+ and Below the 6ine 9ctivities (BT6+.
0n 5T) actiities only radio spots will be aired to communicate our product and business
contact for our target audience. This will cost us &''>A'' rupees spot per 1'sec. we use
only this media because in .u/ranwala < .u/rat region mostly B$B adds are aired at
radio awa" #'4 < #'&. but we are not going toward 9T6 activities at the initial stage of
the business% after some time we2ll prefer to give adds at radio.
0n BT) 5ctiities we publish our business brushers% personal selling with the help of
experienced sales force% and most important factor sending samples and gifts to our
business customers which will allow us to get their attention and to serve them in a better
way. ost of the businesses in this region are operating at traditional basis and the only
two things which we need to focus on firstly relationship with our sta!eholders <
secondly !ic!bac!s to the !ey persons in out target firms to get their favors.
While considering retailers and middlemen which are always !ey influencers in the
mar!et% mar!et is price sensitive and people are not loo!ing at any particular brand for
the smeca product. But they are loo!ing for the appreciation by the retailer and the
availability of the product. We can ensure availability but we need to give a reasonable
margin to the retailers in the general mar!ets. But -uality also matters@ we are focusing
on -uality and brand building also to get recognition.
Page 1$
=perational Plan
=perational plan consist of manufacturing plan% facility layout < scheduling.
anufacturing plan is explain with the diagram.
+anufacturing Plan
0n this process &A4!g materials will be consumed and we will get *,'!g finished goods.
The lead time or process throughput time is 1 hours and *' minutes. Cycle time for the
process is one hour. The washing and drying process is bottlenec! in the whole process.
The wor!ing hours for the whole day will be , hours. The detail for the process is given
below.
&a# +aterial:
8aw material is the first element of production process. The raw material will be in the
plastic bags. &A4!g raw material would be used on daily bases. By careful calculation% we
came to !now that we will purchase 1*&4!g #1,$*!g material on wee!ly and monthly
bases respectively. We will purchase the raw material from different suppliers located in
different areas of .u/ranwala.
Inentory:
0nventory means the extra and remaining raw materials which being saved for the further
use. 9s mentioned above that 1*&4!g raw material will be use on wee!ly bases so we
have to be an inventory of at least of &'''!g. The raw material would be purchased on
wee!ly bases but consume on daily bases so the rest of the material would be the
inventory.
Page 1'
&a# material
Inentory
1ashing 9
:rying
%rushing
6inish !oods
Inentory
*acuum
+olding Packing
&'''!g
&'''!g
A$!g5hour A$!g5hour
#''!g5hour
#''!g5hour $*'!g5hour
1ashing and :ryer:
0n this step of our process% all the plastic bags are washed in their washing area% to clean
these plastic bags from mud and other elements% the caustic soda will be used. The
capacity for this process would be A$!g5hour on the behalf of six persons. 0t means that
six persons will perform this /ob. 0n this process four people will be responsible for
washing and remaining two peoples will be responsible for drying.
%rushing:
7ow these washed < dried plastic bags are crushed in small particles with the help of a
crusher. The capacity of crushing is #''!g5hour. 0t ta!es *1 minutes because the inta!e
was A$ !g. 0n the process of crushing #A) to $') material would be waste.
*acuum:
0n this step all the crushed small particles of plastic bags are passed from a vacuum
machine. The main purpose of this process is to extract the remaining moisturi"er from
the material. The capacity of this process would be #''!g5hour but it ta!es 14 min
because the inta!e was 4'!g.
+olding:
The main purpose of this process is to convert the crushed material into finish product.
Which is also called smeca (plastic dana+. The capacity for this process would be
#''!g5hour.
Packing:
0n this step we pac! all the smeca particles into the bags. =ne person should be for
pac!ing. This process will ta!e & to #' minutes. The smeca plastic dana will be pac! in
$&!g and *'!g bags.
6acility )ayout
The total area for the firm is $' maralas which is near to 9wan Chow! .u/ranwala.
=ffice% 0nventory room% washing area% drying area% crushing and olding% pac!ing and
storage room are located side by side. The detail of each room is given below.
,ffice:
:rom the entrant% on very left side there will be office. The purpose of the office is to
conduct meetings with customers as well as suppliers. The general manager and the
accountant will be chaired in the office. The sale peoples will meet the general manager
and inform him about the sale and current mar!eting trends.
Inentory &oom:
Iery next to the office% there will be inventory room. The capacity of the inventory room
is 4'''!g because 1*&4!g of raw material will be consume on wee!ly bases. The
capacity is more than consumption because we decided to increase the capacity with the
increase in demand.
Page 1/
1ashing 5rea:
Iery next to the inventory is washing area. This area is larger than others because most
of the peoples are wor!ing in that particular area. Washing is the first formal step of the
process.
4eater &oom:
=pen area is very next to washing area. This area is also larger because a large -uantity
has to put in open area for drying purpose. Washing and drying are the process which
ta!es a long time in the whole process.
=ffice 0nventory
Washing 9rea
=pen 9rea
Store
olding and
Pac!ing Crushing Iacuum
*acuum:
Iery next to open area is vacuum. This room is use to extract the remaining moisturi"er
from the material. This process is very fast and extracts the moisturi"er at the rate of
#''!g5hour.
%rushing:
Crushing room is very close to the vacuum room in this room% the material is crush for
the molding process. The crushing process is very -uic! and base on the vacuum.
+olding 9 Packing:
The molding room is very next to the crushing room and we can easily transfer crushed
material to the molding room the purpose of the molding room is to convert crushed
Page 10
;eater
material to the finished good and then the finished good are pac!ed in the bags of $&!g
and *'!g.
Store &oom:
Store room is very next to the molding and pac!ing room the purpose of this room is to
store the finished goods inventory. Store room is close to the exit and finished goods can
easily load for dispatch.
Suppliers; %ustomers 9 Sales People Scheduling
&a# material purchase plan:
8aw material is the !ey element which will pass through the different steps in order to
ma!e a finish good. 0t is the very necessary element. We will purchase the material on
wee!ly bases. We will purchase 14''!g per wee! because our consumption is almost
1&''!g per wee!. =n first wee!% we will purchase the material from !achi fathomand and
on second wee!% we will purchase the material from Khalia road. 0n the remaining two
wee!s we will revise the same procedure.
Territory 1:
The main areas of territory # are .ondlawala road and 7ila choc!. 0t consisted of
8ehman plastic% Bright plastic% Eawood plastic% 9l!hair plastic% Chand plastic and so
many other are there.
Territory 2:
0n this territory% the ma/or areas are pindi bypass and Estate #.these areas included
adina plastic% Shafi- plastic% Sonia plastic% Laib washing machines% Super plastic% Boss
plastic% Ienius plastic etc.
Page 12
?a) :aterial P+rc*ase Plan
)ee& or-er .&(/ location
#ee"
1 3600 "ac$i p$atomand
#ee"
2 3600 "$ia%i road
#ee"
3 3600 "ac$i p$atomand
#ee"
4 3600 "$ia%i road
Territory 3:
.T road and Estate $ are the ma/or areas of this territory. 0t includes Toyo plastic% Super
9sia% Citi"en plastic industry% Bright washing machines and so many other are also there.
!u"rat region:
0n this region% there is only one territory. 0t includes the Shadola road mar!et and the fan
industry.
territor4 1 territor4 # territor4 3 terrritor4 "
0on-al)ala roa- an- Naila *oc&
Pin-i 24,ass an- @state
1 0A! ?oa- B @state # 0+1rat
re$man p%astic madina p%astic toyo p%astic &urniture
s$ado%a
c$oc"
'ri$t p%astic s$a&i( p%astic
citi)en p%astic
&urniture mi%%at &an
a%*"$air p%astic sonica p%astic superasia "$urram &an
da#ood p%astic )ai' #as$in mac$ine master 'a%% point nauman &an
$eera p%astic super p%astic
'ri$t #as$in
mac$ine "$e'ar &an
me$mood p%astic 'oss p%astic $am)a p%astic usmania &an
c$and p%astic +enus #as$in mac$ine "$a#a,a p%astic
$u%am $ussian p%astic
"o$*e*nor #as$in
mac$ine
Sales officers #orking plan:
Sale officer of .u/ranwala region will visit each territory twice a wee!. Sale officer will
visit territory # on Saturday and Tuesday. Sale officer will visit territory $ on Sunday and
Wednesday. ;e will visit the territory 1 on onday and Thursday.
Supply plan:
=n Saturday the plastic dana will be supplied to territory 1. The supply to territory # will
be on Sunday. onday will be the day for the supply of territory $. .u/rat region will be
supplied in Tuesday. We will supply the territory 1 on Wednesday. =n Thursday% we will
supply to territory # as well Estate # also.
sales officer )or&in( ,lan
)ee&-a4s or-er s+,,l4
!onday -.. Road and /state 2 0indi 1ypass and /state 1
.uesday
-onda%#a%a Road 2 3ia%a
C$oc" -u,rat
4ednesday 0indi 1ypass and /state 1 -.. Road and /state 2
.$ursday -.. Road and /state 2 /state 1 and -onda%#a%a
Fri-a4 off -a4
5aturday
-onda%#a%a Road 2 3ia%a
C$oc" -.. Road and /state 2
5unday 0indi 1ypass and /state 1
-onda%#a%a Road 2 3ia%a
C$oc"
Page 23
;uman 8esource Plan
;uman resource plan consist of structure of the organi"ation% compensation system% span
of control and /ob description and /ob specification.
,rgani8ational Structure 9 Span of %ontrol
,rgani8ation structure:
The organi"ational structure would be !ept flat. This is because the span of control would
be !ept low so that the lac! of communication does not ta!e place because this factor
further leads to many problems. There won2t be much layers or management levels. This
will help to remain close with the employees and the organi"ational goals and ob/ectives
could be met with much ease as employees will be closely lin!ed with each other and can
easily see! help when necessary directly from the top level. 9s more and more layers
added to the structure the lac! of communication ta!es place and employees remain far
away showing less concern towards the organi"ation.
The organi"ational structure would be asD
The top level would comprise of the .eneral anager. The middle level would
comprise of the sales people% supervisor and the accountant.
The general manager will be loo!ing forward for the strategic decisions% would loo!
in for setting the goals for the organi"ation.
Sales people would be responsible to meet the sales target allocated to them.
Page 21
9ccountant
.eneral
anager
Supervisor
Sales People
Washing <
Erying
Crushing olding
Pac!ing
Supervisors would be managing and supervising the wor! and they would be the ones
!nowing how to get the things done from the employees under their influence.
The accountant would be in charge of the maintenance of all the records and accounts
of the business.
,rgani8ational %ulture:
Culture is a very important element of any business and is seen as a uni-ue characteristic
of any organi"ation. Gnderstanding it can help a manager predict how his or her
=rgani"ation is li!ely to respond to different situations@ to assess the difficulties that the
organi"ation might experience as it confronts a changing future@ and to identify the
priority issues for the leadership to address as they prepare the organi"ation to compete
for the future.
=rgani"ational culture affects and regulates the way members of the organi"ation thin!%
feel and act within the framewor! of that organi"ation. Culture is the result of common
learning experiences. Because culture forms the basis of group identity and shared
thought% belief% and feeling% one of the most decisive and important functions of leaders
particularly the founders of a company is the creation and management of its culture.
Sub cultures could develop as a part of for example% the culture of manufacturing and
mar!eting groups can be very different% because the problems they confront% they way
they define success% and the conse-uent methods for solving their problems% are different.
:ecision<making:
Culture can be dynamic and could be changed with effort in order to match up with the
environment. Therefore ta!ing the above points into account our organi"ational culture
would be open. The decision>ma!ing would be concentrated with the top management for
the unseen issues and the issues that are more complicated in nature. But the employees
would also be included and the decisions be made in a participative environment when
felt necessary because this gives a sense of belongingness and loyalty for the employees
towards the organi"ation.
This will help the employees to remain close with the organi"ation and this will
ultimately affect their performance and they2ll be more willing to wor! with dedication
and devotion. Therefore to have a friendly and open culture the involvement of
employees in certain decision>ma!ing issues would help to achieve the goals.
The employees whereas would have the delegated authority for decision>ma!ing with the
daily routines because this re-uires mot much of the research and is not complicated as
it2s a daily routine matter so the employees can simply ta!e the decisions of the daily
matters or routine tas!s. :or instance the daily orders to be ta!en and delivered.
Po#er distance:
There would be easy access for the employees to the top management. They can easily
approach the top management if any problem occurs and immediate steps would be ta!en
to solve the problems. 9 more li!e family oriented culture would be a part of our
Page 22
organi"ation because this is what is lac!ing in our country. Therefore our culture could be
one way to differentiate to our competitors.
)eadership Style:
0t would be a participative leadership style when the employees would be regarded and
would be encouraged to give their opinions on the various issues and situations. They2ll
be given a chance to spea! up in the important issues when a need is felt because ta!ing
their opinions sometimes help to ma!e the rational decisions that are in the best interest
of the business because sometimes it happens that employees can understand a problem
more well if its on the lower level therefore there involvement becomes very important
and must.
&ules and policies:
There would be certain rules and policies that will aid in the smooth running of the
business because in its absence things would be out of control. Therefore there are some
basic rules and policies in every organi"ation that assists smooth functioning. :or
instance being punctual% eating only in the prescribed and allotted times% giving an
application for leave prior # or $ days before etc% Therefore for the implementation of
rules and policies penalties would be charged in case of its violation.
Building% maintaining% and creating a feeling of togetherness among group members so
that they become capable of accomplishing things that individuals cannot accomplish
alone is% in fact% an important ob/ective of any manager.
Therefore =rientation and sociali"ation within the organi"ation will be encouraged to
!now each other well in order to avoid conflicts. Plus employees would be well aware of
the culture% norms and values within the organi"ation that will help to further give
comfortable environment to wor! and employees would be more dedicated towards the
organi"ational goals with the better understanding of the organi"ation.
=ob 9 &esponsibilities
!eneral +anager
=ob description:
The primary ob/ective of the .eneral anager is to be a direct representative capable of
ma!ing sound decisions on behalf of 8ecreation 8esource anagement% 0nc. .eneral
anager must possess good administrative% public relations and maintenance s!ills
necessary to enhance overall operations. They will supervise and train host and
maintenance personnel in procedures established by 88. The .eneral anager will
ma!e suggestions5recommendations that could enhance or streamline operations% will
perform or supervise certain construction and maintenance functions and be available to
assist maintenance personnel in performing re-uired duties.
The .eneral anager will conduct a MTraining Wor!shopM at the beginning of each season
for all employees. The .eneral anager will have full supervisory control over 88
Page 23
employees. The .eneral anager will recruit% hire and train other personnel for
permitted areas and resolve personnel problems% will handle complaints% infractions% etc.%
which are referred to him5her and ta!e necessary action to resolve these situations. The
.eneral anager will ensure public relations are handled in a courteous and professional
manner% both from oneself and other 88 employees. The .eneral anager will assist
and participate in all phases of fee collection and maintenance as needed% process and
maintain all records regarding revenues and provide reports to 88. The .eneral
anager is expected to be on duty during wee!ends and holidays. 9 compensation
pac!age for this position will be negotiated on an individual basis.
=ob Specification:
This is a post% designed to provide clear business leadership from a hands on perspective%
with direction to standards% ensuring strong performance% and a !een eye to profitability
and future innovation.
The .eneral anager will be reporting on all aspects of the trading operation including
business planning and performance% budgetary control and service standards.
Person Specification:
Excellent leadership s!ills% and proven hands on :<B management experience within a
commercial environment are a given. This exciting and rewarding role re-uires a creative
slant% which the resources of a small team demand. The ability to manage the business
(with an eye to improving turnover and profitability+% while raising the -uality of service
to the customers is essential.
Superisor:
=ob :escription:
Supervises and directs the daily activities of the staff through appropriate
delegation% managerial support% and wor! supervision.
Screens and assigns wor!load@ plans% prioriti"es and assigns tas!s and pro/ects@
assists in developing performance standards@ approves promotions and
terminations.
Counsels% trains and coaches staff@ monitors wor!% develops staff s!ills% and
evaluates performance@ identifies training needs and develops training for staff.
onitors operations and procedures% and submits recommendations for improving
the wor! group2s functions and processes@ clarifies and reconciles issues relating
to policies and procedures.
eets regularly with staff to offer support and guidance@ analy"es and evaluates
issues% and recommends and implements solutions.
Coordinates a variety of administrative activities including employee scheduling%
payroll reporting and report processing@ coordinates and validates employee time
cards and mileage claims@ prepares and reviews statistical reports.
Page 24
8eviews and criti-ues wor! of appraisers@ visits appraisal wor! sites% conducts
inspections% and identifies discrepancies@ provides guidance and recommendations
for improvements.
8eviews% investigates% and corrects errors and inconsistencies in data entries%
transactions% documents% procedures and reports.
Coordinates and performs appraisals of real property involving large and complex
residential% commercial and industrial appraisal assignments to include apartment
complexes% mobile home par!s% private power plants% and water companies.
8esearches legislative changes% sales data and mar!et trends% and writes reports
and recommendations.
8epresents the Eepartment in a variety of meetings.
Performs other related duties as assigned.
=ob Specification:
+I(I+>+ ?>5)I6I%5TI,(S
&e@uired Ano#ledge and Skills:
Knowledge of the principles and practices of the appraisal process and
applications.
Knowledge of applicable rules% ordinances% codes and regulations.
Knowledge of County and Eepartment policies and procedures.
Knowledge of techni-ues and practices for effective and efficient management of
allocated resources.
Knowledge of management and supervision principles and practices.
Knowledge of the principles and practices of boo!!eeping and accounting.
Knowledge of the principles and practices of file and records management.
S!ill in following and effectively communicating verbal and written instructions.
S!ill in reading% understanding% interpreting and applying relevant city% County%
state and :ederal statutes% rules% ordinances% codes and regulations.
S!ill in coordinating staff% and delegating tas!s and authority.
S!ill in analy"ing and interpreting technical reports and documents.
S!ill in assessing and prioriti"ing multiple tas!s% pro/ects and demands.
S!ill in wor!ing within deadlines to complete pro/ects and assignments.
S!ill in assessing% analy"ing% identifying and recommending solutions to
problems.
S!ill in establishing and maintaining effective wor!ing relations with co>wor!ers%
other County employees and public.
S!ill in operating a personal computer utili"ing a variety of business software.
5ccountant:
=ob :escription:
Page 2$
6earns to and5or performs professional accounting and budgetary duties involved
in establishing% analy"ing% reviewing% reconciling% monitoring% and maintaining
financial records and reports@ ensures financial integrity of assigned accounts.
6earns to and5or prepares% analy"es% evaluates% and monitors a program% a
division% or the department2s budget% and other designated budgets@ learns to
and5or prepares income and expenditure pro/ections for budget preparation@
analy"es program and pro/ect costs@ provides recommendations.
Prepares or verifies a variety of routine and simple accounting% statistical% and
narrative statements or reports% re-uiring analysis and interpretation of data.
onitors cash flow from enterprise funds% internal service funds% special revenue%
and special district funds@ learns to prepare cash flow analyses and funding
re-uirements for various funds and pro/ects.
Calculates% posts% and ad/usts /ournal entries@ updates accounts to reflect revenue
and expenditures@ audits accounts for errors and ma!es appropriate ad/ustments@
coordinates and reconciles different computer financial systems statements@
reconciles various financial statements to ensure accurate fund accounting@
matches financial statements with cash amounts@ initiates account transfers and
other transactions as needed@ utili"es manual and computeri"ed record!eeping
systems.
8eviews and monitors grants% contracts% claims@ prepares financial statements%
balance sheets% income and expense reports% and conducts cash flow analysis.
8eviews% analy"es% and documents a variety of accounts and transactions@
reconciles general ledger% cash% and other designated accounting reports and
statements with financial records@ compares manual and automated records and
transactions@ identifies errors@ verifies account balances@ ad/usts accounts@ initiates
transfers@ and ma!es corrections.
aintains current !nowledge of and complies with applicable laws% codes% rules%
regulations% established policies and procedures% and with generally accepted
accounting principles@ ensures accuracy of input and output data.
8esponds to in-uiries% resolves issues and conflicts% and provides detailed and
technical information concerning related standards% practices% pending legislation%
laws% codes% regulations% polices% and procedures@ attends and participates in
various meetings% committees% and professional groups.
0dentifies% develops% and implements procedures and techni-ues to enhance fiscal
accuracy% operational efficiency% financial effectiveness% and compliance with
established re-uirements.
Page 2'
?>5)I6I%5TI,(S
9 combination of experience% education% and5or training which substantially demonstrates
the following !nowledge% s!ills% and abilitiesD
1orking Ano#ledge:
#. ethods% procedures% and terminology used in professional accounting
$. :inancial and statistical record!eeping techni-ues
1. 8elated computer hardware and applicable software
Skill and 5bility to:
#. 6earn to and5or accurately perform professional accounting and budgetary wor!
involved in preparing% analy"ing% reconciling% and maintaining financial records and
reports.
$. 6earn to and5or prepare% analy"e% and monitor funds% budgets% and accounts
1. 8econcile various statements
*. 0nterpret% apply% and explain rules% regulations% policies% and procedures
&. Prepare accounting reports
4. 9naly"e financial data and prepare reports% forecasts% and recommendations
A. Gnderstand administrative policies and their impact on routine accounting functions
,. Perform mathematical calculations
?. eet schedules and timelines
#'. =perate standard office e-uipment% including a computer and associated software
##. Communicate effectively both orally and in writing
#$. Provide excellent and courteous customer service and establish and maintain effective
wor!ing relationships
Sales people
=ob :escription:
Present and sell company products and services to current and potential clients.
Prepare action plans and schedules to identify specific targets and to pro/ect the
number of contacts to be made.
:ollow up on new leads and referrals resulting from field activity.
0dentify sales prospects and contact these and other accounts as assigned.
Prepare presentations% proposals and sales contracts.
Eevelop and maintain sales materials and current product !nowledge.
Establish and maintain current client and potential client relationships.
Prepare paperwor! to activate and maintain contract services.
anage account services through -uality chec!s and other follow>up.
0dentify and resolve client concerns.
Prepare a variety of status reports% including activity% closings% follow>up% and
adherence to goals.
Page 2/
Communicate new product and service opportunities% special developments%
information% or feedbac! gathered through field activity to appropriate company
staff.
Coordinate company staff to accomplish the wor! re-uired to close sales.
Eevelop and implement special sales activities to reduce stoc!.
=ther duties as assigned
=ob Specification:
Basic reading% writing% and arithmetic s!ills re-uired. This is normally ac-uired
through a high school diploma or e-uivalent.
9bility to persuade and influence others. 9bility to develop and deliver
presentations. 9bility to create% composes% and edits written materials. Strong
interpersonal and communication s!ills. Knowledge of advertising and sales
promotion techni-ues. This is normally ac-uired through a combination of the
completion of a BachelorMs Eegree and three to five years of sales or mar!eting
experience.
Iisibility re-uires maintaining a professional appearance and providing a positive
company image to the public.
Wor! re-uires significant local travel to current and potential clients. This
re-uires the possession of a valid state driver2s license within 4' days of
employment.
Wor! re-uires willingness to wor! a flexible schedule and occasional overnight
travel.
Performance 5ppraisal:
Performance appraisal is a way to measure and evaluate the employees2 wor! and
recogni"e their efforts in order to motive them so that they can further wor! with more
dedication and devotion. Performance appraisal plays a vital and foremost role in every
organi"ation to !eep the environment conditions smooth and to better motivate the
employees.
=ur organi"ation will be one of those organi"ations that will !eep the employees into
account. We will be dealing li!e organi"ations as organs that is prioriti"ing our
employees.
We will be appraising our employees after every six months that is twice a year.
Supervisors will be chec!ing up and the employees on certain factorsD
:or instance
Punctuality
8egularity
9ssigned tas!s
6ow occurrence of errors
Ethical behavior
Coordination among each other
Page 20
=rgani"ation citi"en behavior
Willingness to wor!
6oyalty to wor!
We will prefer to give intangible awards to the employees who perform well on the above
factors and the overall /udgment would lead to the final results and decision. 6i!e we will
be announcing as best employee after 4 months.
:inancial Plan
:inancial plan of !7! enterprises consist of Balance Sheet% 0ncome Statement <
pro/ected Cash flow statement. The pro/ect cost estimates for the proposed Plastic Bags
8ecycling Setup have been formulated on the basis of discussions with relevant
sta!eholders and experts. The cost pro/ections cover the cost of land% building% inventory%
e-uipment including office furniture etc. The specific assumptions relating to individual
cost components are given as under.
&eenue 9 %ost Pro"ections:
There is already $') gap in the existing mar!et% which is fulfilling by importing the
material (Eanna+ from other countries% so sales are expected to increase with respect to
increase in our capacity of 11) per anum. =n the other hand raw material cost will also
expect to increase with respect to capacity. 0tMs assumed that every #'' !g of the raw
material will produce the ,1 !g of finished goods. The annual increase in revenue is
expected to result from a part increase in capacity utili"ation and part increase in product
price. ;owever the price of the raw material is usually lin!ed with the petrochemical
prices% therefore itMs re-uired to carefully negotiate the purchase price and manage the
inventory level in coordination with the production personnel.
The prices used to calculate the gross revenue earned are based on the selling rate at
which the we will charge the distributor. These basic prices do not include the selling and
distribution margins and the since these would depend on the negotiation with the
distributor. The prices are also exclusive of the .eneral Sales Tax.
>tility &e@uirement:
Utilities
9ear 1
?sA
9ear #
?sA
9ear 3
?sA
9ear "
?sA
9ear 3
?sA
-as, 6urnace 7i% and 8u'ricants 10000 10000 13000 15000 16000
7t$er Uti%ity 1i%%s 20000 20000 22000 25000 26000
8eased 9e$ic%es /:penses 10000 12000 15000 18000 20000
.e%ep$one usae 5000 5000 6000 6500 6600
7 !*ese are %ont*l4 a%o+nt o<er a ,artic+lar 4ear
9s depicted above the machines re-uire considerable power during the blow molding
process% whereas gas and water also important in process% Electricity for 8unning of
batteries of machine and crusher whereas% gas will be re-uire to melt resins% while water
will be used by the cooling system. 0t is assumed that utilities expenses will increase by
different amounts (as mentioned in above table+.
Page 22
:epreciation on Building 9 B@uipment:
Eepreciation on Building% achinery and =ffice :urniture < :ixtures is assumed to be at
the rate of #') per annum based on the straight line balance method for the pro/ected
period% which is amount to be 8s. $&'%'''.
+achine +aintenance:
The olding achines and molds have a long life however the maintenance cost of the
machines are usually very high since they need to be oiled and cleaned regularly specially
before installing a new mold or starting a fresh production process. The yearly
maintenance cost has been ta!en to be 8s. &,''5month to 8s.?'''5month% over the &
years of the written down value of the machine.
1orking %apital 9 Pre ,perating %osts:
0t is estimated that an additional amount of approximately 8s. *?&%&1A will be re-uired as
cash in hand to meet the wor!ing capital re-uirements 5 contingency cash for the initial
stages. But it will be increase up to 8s. *.1 illions at the &
th
year. The re-uirement is
based on the utilities% salaries and other expenses for per month and raw material
inventory is assumed to be maintained for monthly production.
The following table gives the brea! up.
Ite%
9ear 1
?sA
9ear #
?sA
9ear 3
?sA
9ear "
?sA
9ear 3
?sA
Uti%ities 45000 47000 56000 64000 68600
5a%aries 37500 42700 48000 52500 56700
Ra# materia% in+entory 167432 233625.33 280800 299520 299520
!isc. 5000 5800 8000 9000 9000
7 !*ese are %ont*l4 a%o+nt o<er a ,artic+lar 4ear
Proision for pre<operating cost:
The provision for pre operating costs is assumed to be 8s. #A#%*A, which will be
amorti"ed e-ually with the amount of 8s. $'%''' p.a. over a & year period.
5ccount &eceiables:
9 collection period of one month is assumed for sales. :urther provision for bad debts
has been assumed e-uivalent to #.$&) of .ross Sales.
&a# +aterial Inentory:
Based on our assumptions for the production facility% orders and availability of desired
material% it would be necessary to maintain #& days of raw material in order to cover any
urgent order re-uirement. Based on discussion with existing sta!eholders% by product of
petrochemical and all import for foreign countries we must contain minimum level of
material for continuity of production.
6inished !oods Inentory:
The proposed pro/ect will maintain #& days finished goods inventory in order to meet
mar!et supplies and boo!ed orders.
6inancial %harges:
Page 33
0t is assumed that long>term financing for & years will be obtained in order to finance the
9uto Wor!shop setup which would mainly include Construction of Building% asonry
wor!% Purchase of E-uipment etc. This facility would be re-uired at a rate of 1) of Total
sales Iolume per annum.
TaCation:
The tax rate applicable to partnership is the same as that of the any registered firm. There
will be $&) tax charges on the 0ncome before tax.
&atio 5nalysis
)i@uidity &atios
%urrent &atio:
This 8atio suggest us to measure the solvency of the firm by indicating its ability to pay
current liabilities (debts+ from its current assets generally it2s consider that ;igher the
ratio% better the firm is. But it2s not a #'') guarantee to indicate the solvency of that
firm.
With respect to this firm% current ratio of !7! Bnterprises will be 171142: 1 in 1
st
year;
which will increases up to 17$/: 1 into $
th
year7 This indicates the good solvency over the
time period.
?uick ratio:
This ratio represents the most li-uid assets over current liabilities by excluding the
0nventory from the current assets. Purpose of this ratio is to find out the most reliable
solvency position of the firm for ability to pay the current liabilities of that firm. 0n first
$ years of ... Enterprises% the ratio will be under #% but after the maximum capital
utili"ation of the capacity% it can be up to #.'#D #% #.'AD #% and #.'4D # at 1
rd
% *
th
% and &
th
year respectively% which indicates the ability to solve the current liabilities with its most
li-uid assets.
)eerage &atios:
:ebts &atio:
This ratio suggests us to measure the ability of the firm to pay bac! its Total debts with
its Total assets. This ratio is also helpful to ta!e an additional loan from :inancial
0nstitutions. The lower the ratio is% the better it will be. 9nd with respect to ...
Enterprises% this ratio will remain under # at decreasing trend over the years.
:ebt to (et #orth &atio:
7et worth includes the capitalN capital stoc!N earned surplus. 6ower the ratio better it
will be ad vice versa. 0n case of ... enterprises% it will be lower (with decreasing trend+.
Time Interest Barned &atio:
This ratio represents the ability of the firm to pay bac! its interest expenses from the
Earning before 0nterest and Tax. ;igher the ratio the better it will be in position to
Page 31
paybac! its interest expenses. 0n case of !7! Bnterprises it will be at increasing trend
with higher rate% which is a good indicator of the performance of our firm over the tears.
Performance &atios
5erage Inentory turnoer &atio:
This ratio can derive by dividing the Cost of goods sold by average 0nventory of the firm
over a year. The lower the ratio% the worst it will be for the firm. This ratio describes that
whether the inventory is under stoc!% over stoc! or balanced. There will be a problem for
... Enterprises for the proper management of the 0nventory% as this ratio is decreasing
gradually over the years. The reason for that lower ratio can be the high mar!et demand
for our product (smeca dana+.
&eceiable Turnoer &atio:
This ratio tells us that how efficient our collection of payment system is. The higher the
ratio the worst it can be. But for ... enterprises it will remain stagnant over the years%
which shows the consistency in collection of receivable.
5erage %ollection Period &atio:
This ratio tells us that in how many days we collect the money from our receivables. The
lower it will% the better it will be. But in case of ... Enterprises it will remain stagnant%
which shows that company can consistently collect its receivables.
Payable Turnoer &atio:
This ratio will tell us whether our payment system from purchases of raw material is
efficient or consistency or not. But fortunately due to consistency in accounts receivables
collection% there will also be a consistent payment to our creditors and suppliers% which is
good indication of firm2s performance.
5erage Payable Period:
This ratio tells us whether our payment period is good or not. But due to consistency in
the Payable turnover ratio% there will be consistent payment period for ... Enterprises.
(et Sales to Total 5ssets &atio:
The higher the ratio will be the better it is. Because this ratio will tell us whether our
Total assets contributing into our net sales. 9nd for the .. Enterprises it will remain
consistent over the years% which is not even bad.
(et Sales to 1orking %apital &atio:
The purpose of this ratio is same as of above ratio% but the difference is that% in this ratio
we will find the percentage contribution of the wor!ing capital for net sales of that firm.
0t will decrease gradually in respect of ... Enterprises% which can be a threat for this
firm. But due to proper management of the wor!ing capital we can overcome this
problem.
(et Profit on Sales &atio:
Page 32
This ratio will tell us the percentage of the profit over the net sales of the company. The
higher the percentage% the better it will be. 9nd it case of ... Enterprises its increasing
gradually over the period% which 0 good for this firm.
(et Profit to B@uity &atio:
The higher the ratio the better it will be% because this ratio tells us that whether the firm is
utili"ing its total e-uity over its net profit or not. :or ... Enterprises it2s increasing
gradually over the period.
Page 33
Pro1ecte- Balance S*eet .0A0 @nter,rises/

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Assets

Current assets
Cas$ 2 1an" 495,537 3,728,698 3,259,061 2,787,596 4,096,873 4,309,039
;ccounts recei+a'%e 0 998400 1497600 1946880 2116608 2236416
<n+entory 0 748800 1996600 2670819 2611015.8 3111813
!otal +rent Assets "53336 3"63858 6633#61 6"03#53 88#""56 5636#68

Fixed assets
8and 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
1ui%din=<n&rastructure 785,000 785,000 706,500 628,000 549,500 471,000
!ac$inery 2 e(uipment 780,000 780,000 772,200 764,400 756,600 748,800
6urniture 2 6i:tures 225,000 225,000 202,500 180,000 157,500 135,000
9e$ic%e

710,000

710,000 639,000 568,000 497,000 426,000
!otal FiCe- Assets

"$300$000

"$300$000 "$3#0$#00 "$1"0$"00 3$560$600 3$680$800
Subtotal of Eepriciable 9ssets $%&''%''' $%&''%''' $%1$'%$'' $%#*'%*'' #%?4'%4'' #%A,'%,''
Less; ;ccumu%ated >epriciation?net@ A 10% p.a

250,000 250,000 250,000 250,000 250,000
;ctua% >ericia'%e ;ssets

#$300$000

#$#30$000 #$060$#00 1$850$"00 1$610$600 1$330$800
!otal FiCe- Assest .After De,riciation/

"$300$000

"$#30$000 "$060$#00 3$850$"00 3$610$600 3$330$800
Intengible Assets
0re*7prations cost 171,478 151,478 131,478 111,478 91,478 71,478
!otal Inten(i2le Assets 161$"68 131$"68 131$"68 111$"68 51$"68 61$"68
!O!AL ASS@!S

3$166$013A00

5$866$366A00 10$53"$535A00 11$"06$163A00 1#$6#6$36"A80 13$#35$3"6A00

Lia2ilities B @D+it4

Current Liabilities
;ccounts paya'%e 0 2496000 3369600 3893760 3704064 3913728
Page 34
Current 'orro#ins 0 0 0
7t$er current %i'i%ities 0 2415221 1586365.69 754609.04 2054513.6 2254185.02
!otal c+rrent li2ilities 0 "511##1 "533563A65 "6"8365A0" 3638366A6 6166513A0#

Long term Libilities
8on term de'ts

1,033,403.00

1,033,403.00 930,062.70 826722.4 723382.1 620041.8

Equity and Caital
5tart up capita%

4,133,612.00

4,133,612.00 4,133,612.00 4,133,612.00 4,133,612.00 4,133,612.00
Retained earnins 0 18339.192 35264.12 39431.432 45842.74
;ccumu%ated 0ro&it = ?8oss@ 0 *200860 916959.6 1763206 1971571.6 2292137
!otal eD+it4

"$133$61#A00

3$53#$63#A00 3$068$510A65 3$53#$08#A1# 6$1""$613A03 6$"61$351A6"
!O!AL @EUI!9 B LIABILI!I@S

3$166$013A00

5$866$366A00 10$53"$535A18 11$"06$163A36 1#$6#6$36"A63 13$#35$3"6A36
LiD+i-it4 ?atiosF 9ear 1 9ear # 9ear 3 9ear " 9ear 3

+rrent ?atioF Current ;ssets 1.114976907 1.362652896 1.593095328 1.532409114 1.565727008
Current 8ia'i%ities

E+ic& ?atioF Current ;ssets* 5toc" 0.96250973 0.959784893 1.018524123 1.078995792 1.061210652
Current 8ia'i%ities


Lea<era(e ?atiosF

De2t ?atioF .ota% >e't 0.601842433 0.537294492 0.479969177 0.513358516 0.511929656
.ota% ;ssets

De2t to Net Wort* ?atioF .ota% >e'ts 1.511568489 1.161201811 0.922962853 1.054900863 1.048884895
.ani'%e net #ort$

!i%e Interest @arne- ?atioF
/arnin 'e&ore <nt. 2
.a: *2.341212607 3.80224359 4.327395628 4.479284042 5.028916816
.ota% <nterest
Page 3$
/:penses

O,erations ?atios are in t*e Inco%e State%ent
S*eet



4or"in Capita% 564677 1797295 2756926 3065919 3489355
Pro1ecte- Inco%e State%ent 0A0 @nter,risesA
Bear 1 Bear 2 Bear 3 Bear 4 Bear 5
Sales "$55#$000 6"88000 563""00 103830"0 1118#080
LessF ost of 0oo- Sol-F
>irect !ateria% 2009180 2803504 3369600 3594240 3594240
>irect 8a'or 660000 720000 780000 840000 864000
Factor4 O<er*ea- 663$000 666$"00 6"1000 806000 833"00
-as, 6urnance 7i% and 8u'ricants 120,000 120,000 156000 180000 192000
7t$er Uti%ity 1i%%s 240,000 240,000 264000 300000 312000
5uper+isor 5a%ary 90,000 92,400 96000 102000 104400
>epriciation 225,000 225,000 225000 225000 225000
!otal of ost of 0oo- Sol- .act+al/ 33""180 "$#00$50" "850600 3#"1#"0 3#516"0
0ross :ar(in 1$6"6$8#0 3$#86$056 "8"3800 33"1800 3850""0
-ross !arin ; 33% 43.90 49.76 50.48 52.68
O,eratin( @C,ensesF

Sales B :ar&etin( @C,ensesF
5a%es 2 !ar"etin 0ayro%% 360000 420000 480000 528000 576000
;d+ertisin=0romotion 240000 300000 360000 372000 384000
.ra+e% 180000 216000 240000 264000 288000
!otal Sales B :ar&etin( @C,enses 680000 536000 1080000 116"000 1#"8000
5a%es 2 !ar"etin ; 15.63 12.5 11.09467456 10.99873004 11.16071429

0eneral B A-%inistration @C,ensesF
-enera% 2 ;dministration 0ayro%% 299520 449280 584064 634982.4 670924.8
;morti)ation o& 0re%iminary /:penses 20000 20000 20000 20000 20000
7&&ice /(uipment 120000 60000 72000 72000 72000
.ra+e%in 2 /ntertainment /:pense 180000 192000 216000 240000 240000
Page 3'
!tilities" 180000 #0"000 #3#000 #5"000 315#00
8eased 9e$ic%es /:penses 120000 144000 180000 216000 240000
.e%ep$one usae 60000 60000 72000 78000 79200
!isc 0%ant 2 !aintanence /:penses 69600 72000 96000 108000 108000
7t$ers ?/:penses@ 49800 50400 60000 66000 68400
!otal 0eneral B A-%inistration @C,enses 5185#0 10"6680 130006" 1"3"58#A" 1"583#"A8
-enera% 2 ;dministration /:penses % 18.41 13.99 13.36 13.56 13.40

Ot*er @C,ensesF ?6inancia% C$ares, etc.@ 1"5$660A00 ##"6"0 385366 "#33#1A6 ""6#83A#
7t$er /:penses ; 3.00 3 4 4 4
!otal O,eratin( @C,enses 1$8"8$680A00 #$#08$3#0A00 #$665$""0A00 3$0##$30"A00 3$153$808A00
O,eratin( Inco%e> Loss .#00$860A16/ 1$068$666A00 #$06"$360A00 #$315$"56A00 #$656$63#A00
.a:es <ncured 0 161,816.40 311,154.00 347,924.40 404,494.80
N@! INO:@ or .LOSS/ .#00$860/ 516$535A60 1$663$#06A00 1$561$361A60 #$#5#$136A#0
Net Inco%e.Loss/ > Sales ; *4% 12.25 18.11 18.63 20.50
Pro1ecte- as* Flo) 0A0 @nter,risesA
Bear 0 Bear 1 Bear 2 Bear 3 Bear 4 Bear 5

as* Flo) fro% O,ertain( Acti<ities F
Net Profit *

.#00$860/ 516535 1663#06 1561361 ##5#136
Add: >epriciation /:penses 0 250,000 250000 250000 250000 250000
;morti)ation /:penses 0 20,000 20000 20000 20000 20000
?<ncrease@ = >ecrease in Recei+a'%es 0 *998400 *1497600 *1946880 *1497600 *1497600
?<ncrease@ = >ecrease in Ra# !ateria% 0 *1198080 *1797120 *2527200 *1797120 *1797120
?<ncrease@ = >ecrease in 6inis$ed -oods <n+entory 0 *29952 *44928 *56160 *44928 *44928
<ncrease = ?>ecrease@ in 0aya'%e 0 399360 *74880 *93600 *74880 *74880
!otal as* Flo) fro% O,eratin( @C,enses =

.1$636$53#/ =###6365 =#35063" =116#536 =83#351

A--itional as* ?ecei<e-F
3e# current 'orro#ins 0 0 0 0 0 0
3e# ot$er %ia'i%ties ?<nterest &ree@ 0 0 0 0 0 0
Page 3/
3e# <n+estment recie+ed 0 0 0 0 0 0
5a%es o& %on*term assets 0 0 0 0 0 0
5a%es o& current assets 0 0 0 0 0 0
#ubtotal o$ Cas% $lo& $rom additional a'ti(iies 0 0 0 0 0 0

as* Flo) fro% Financin( Acti<ities F
Reciept &rom 8on .erm >e't 1119664 1199664 1091264 982864 874464 766064
Repayment o& 8on .erm >e't 0 0 108400 108400 108400 108400
7#nerCs /(uity 4286966 4286966 4286966 4286966 4286966 4286966
Net as* Flo) fro% Financin( Acti<ities

3$"06$630A00

3$"86$630A00

3$"86$630A00

3$368$#30A00

3$#65$830A00

3$161$"30A00

as* Flo) fro% In<estin( Acti<ities F
Capita% /:penditure 2274999.4 0 0 0 0 0
6actory= 7&&ice 6urniture 225,000 0 0 0 0 0
0re%iminary 7peratin /:penses 171,478 0 0 0 0 0
Ra# !ateria% <n+entory 239616 0 0 0 0 0
0urc$ase o& 8and 2,000,000 0 0 0 0 0
Net as* Flo) fro% In<estin( Acti<ities "$511$053 0 0 0 0 0

N@! ASH FLOW "53$336

3$6#8$658

3$#35$061

#$686$356

"$056$863

"$305$035
as* at Be(innin( of t*e Perio- 0 495,537

3,728,698

3,259,061

2,787,596

4,096,873
as* at t*e @n- of t*e Perio- 495,537

3,728,698

3,259,061

2,787,596

4,096,873

4,309,039
Page 30