2. Vision
To solve the needs of drinking water in twin cities and to
provide quality service to households
Mission
to become the leading supplier of drinking water in twin cities
4. Assumptions in the project:
• The sales are assumed to be constant at the
minimum level for easy calculation of accounts the
real sales will be much higher than projected.
• The business activity is kept as constant from the
2nd year and assumed to continue in the same way
5. Income and expenditure statement(1st year)
Expenditure Amount Income Amount
Bore 2,00,000 Normal sales 10,95,000
Tank 2,00,000 Tin sales 35,000
Cooling equipment 75,000 Seasonal
extra sales
1,83,000
Refreshing tank 20,000 deficit 70,000
Rent advance 25,000
Salaries 2,88,000
electricity 3,00,000
Rent 1,50,000
Tins cost 30,000
depreciation 50,000
Office & Stationary
expenses
15,000
Miscellaneous
expenses
30,000
Total 13,83,000 Total 13,83,000
6. Liabilities Amount Assets Amount
Capital 6,00,000 Bore 1,80,000
Net loss (70,000) Tank 1,80,000
Cooling
equipment
67,000
Refreshing
tank
18,000
Rent advance 25,000
Cash 50,000
Prepaid for
tins
10,000
Total 5,30,000 Total 5,30,000
Balance sheet(1st year)
Net profit= Total Income – Total Expenditure
= 13,13,000-13,83,000
=(70,000).
7. Income and expenditure statement(2nd year)
Expenditure Amount Income Amount
Salaries 2,88,000 Normal sales 10,95,000
electricity 3,00,000 Tin sales 15,000
Rent 1,50,000 Seasonal
extra sales
1,83,000
Depreciation 50,000
Office &
Stationary
expenses
15,000
Additional
tank
construction
2,00,000
Miscellaneous
expenses
20,000
surplus 2,70,000
Total 12,93,000 Total 12,93,000
Net profit= Total Income – Total Expenditure
= 12,93,000-10,23,000
= 2,70,000.
8. Liabilities Amount Assets Amount
Capital 6,00,000 Bore 1,60,000
Net Profit 2,70,000 Tank 3,60,000
Drawings (1,20,000) Cooling
equipment
59,000
Refreshing
tank
16,000
Rent advance 25,000
Cash 1,30,000
Total 7,50,000 Total 7,50,000
Balance sheet(2nd year)