This document outlines the key financial projections and estimates required to evaluate a new project, including: cost of the project, means of financing, sales and production estimates, cost of production, working capital requirements and financing, profitability projections, cash flow statements, and projected balance sheets. Specifically, it details how to estimate sales and production levels over several years, calculate costs including material, labor and overhead, determine working capital needs, and develop multi-year profit/loss, cash flow and balance sheet projections.
how to prepare business project reports before starting the organisation for that planning is required so this power point presentation helps to preparing organisation project reports
Capital and Revenue Expenditure
Before preparing the financial statements of business organisation’s, we should get information about capital and income expenses and capital and income receipts, because having a clear knowledge of these helps in preparing the income statement and balance sheet.
At the end of the financial year, Final Accounts are prepared by every business, in which Trading and Profit & Loss Account and Balance Sheet are included. Items given in the trial balance are entered either in the trading and profit and loss account or in the balance sheet. For this, it is very important to divide the items given in the trial balance into income and capital, because all the income items given in the balance sheet ie income expenditure and income receipts are written in the business and profit and loss account, while all the capital expenditure and capital receipts are written in the balance sheet. (Position Details) are written in.
Therefore, before preparing the final accounts, it is very necessary to divide the items of trial balance into capital and income. Due to wrong classification of any item into capital and income, the amount of profit or loss reported by the profit and loss account will be wrong and the balance sheet will also not give the correct and proper financial position as on that date.
Classification of Expenditure
Expenses can be divided into three categories :
Expenditure
1. Capital Expenditure
2. Revenue Expenditure
3. Deferred Revenue Expenditure
This is a useful template depicting the analytical method used by Banks & Financial Institution to assesse the working capital requirement of Customer.
This presentation provides an insight into techniques which can help business undertake financially viable projects using Capital Budgeting tools like Net Present Value, Internal Rate of Return and Discounted Pay-back Period.
Though the scope of this presentation involves:-
- Mutually exclusive projects,
- Indivisible Projects, and
- Equal duration projects
More research work is being undertaken for projects of different duration.
Moreover, I'll share more about calculation of Weighted Average cost of capital, ROI and Risk-adjusted ROI in the upcoming presentations.
If you wish to add comments or need to ask questions, please feel free.
Scheme for Promotion of Manufacturing of Electronic Components
and Semiconductors (SPECS)
Applicant: Private Limited Company, Public Limited Company, Sole Proprietorship,
Partnership, or Limited Liability Partnership registered in India.
2. Project / Unit: New business unit or expansion of capacity / modernization and / or
diversification of an existing unit.
3. Expansion of capacity / modernization and/ or diversification of an existing unit: An
increase in the value of fixed capital investment in plant, machinery, equipment, associated
utilities and technology, including for Research & Development (R&D) of an existing unit.
4. Approved Project / Unit: Project for which approval is issued by the Project Management
Agency (PMA), based on the recommendations of Executive Committee (EC) under MeitY
1. Expenditure incurred on plant, machinery, equipment and associated utilities:
• tools, dies, moulds, jigs, fixtures (including parts, accessories, components, and spares
thereof) of the same.
• expenditure on packaging, freight/ transport, insurance, and erection and
commissioning.
• The Associated utilities - captive power and effluent treatment plants, essential equipment
required in operations areas such as clean rooms, air curtains, temperature and air quality
control systems, compressed air, water & power supply and control systems, etc.
• The Associated utilities also include IT and ITES infrastructure related to manufacturing
including servers, software and ERP solutions.
• The total expenditure incurred on associated utilities - not exceeding 20% of the total
eligible capital expenditure for plant, machinery and equipment.
how to prepare business project reports before starting the organisation for that planning is required so this power point presentation helps to preparing organisation project reports
Capital and Revenue Expenditure
Before preparing the financial statements of business organisation’s, we should get information about capital and income expenses and capital and income receipts, because having a clear knowledge of these helps in preparing the income statement and balance sheet.
At the end of the financial year, Final Accounts are prepared by every business, in which Trading and Profit & Loss Account and Balance Sheet are included. Items given in the trial balance are entered either in the trading and profit and loss account or in the balance sheet. For this, it is very important to divide the items given in the trial balance into income and capital, because all the income items given in the balance sheet ie income expenditure and income receipts are written in the business and profit and loss account, while all the capital expenditure and capital receipts are written in the balance sheet. (Position Details) are written in.
Therefore, before preparing the final accounts, it is very necessary to divide the items of trial balance into capital and income. Due to wrong classification of any item into capital and income, the amount of profit or loss reported by the profit and loss account will be wrong and the balance sheet will also not give the correct and proper financial position as on that date.
Classification of Expenditure
Expenses can be divided into three categories :
Expenditure
1. Capital Expenditure
2. Revenue Expenditure
3. Deferred Revenue Expenditure
This is a useful template depicting the analytical method used by Banks & Financial Institution to assesse the working capital requirement of Customer.
This presentation provides an insight into techniques which can help business undertake financially viable projects using Capital Budgeting tools like Net Present Value, Internal Rate of Return and Discounted Pay-back Period.
Though the scope of this presentation involves:-
- Mutually exclusive projects,
- Indivisible Projects, and
- Equal duration projects
More research work is being undertaken for projects of different duration.
Moreover, I'll share more about calculation of Weighted Average cost of capital, ROI and Risk-adjusted ROI in the upcoming presentations.
If you wish to add comments or need to ask questions, please feel free.
Scheme for Promotion of Manufacturing of Electronic Components
and Semiconductors (SPECS)
Applicant: Private Limited Company, Public Limited Company, Sole Proprietorship,
Partnership, or Limited Liability Partnership registered in India.
2. Project / Unit: New business unit or expansion of capacity / modernization and / or
diversification of an existing unit.
3. Expansion of capacity / modernization and/ or diversification of an existing unit: An
increase in the value of fixed capital investment in plant, machinery, equipment, associated
utilities and technology, including for Research & Development (R&D) of an existing unit.
4. Approved Project / Unit: Project for which approval is issued by the Project Management
Agency (PMA), based on the recommendations of Executive Committee (EC) under MeitY
1. Expenditure incurred on plant, machinery, equipment and associated utilities:
• tools, dies, moulds, jigs, fixtures (including parts, accessories, components, and spares
thereof) of the same.
• expenditure on packaging, freight/ transport, insurance, and erection and
commissioning.
• The Associated utilities - captive power and effluent treatment plants, essential equipment
required in operations areas such as clean rooms, air curtains, temperature and air quality
control systems, compressed air, water & power supply and control systems, etc.
• The Associated utilities also include IT and ITES infrastructure related to manufacturing
including servers, software and ERP solutions.
• The total expenditure incurred on associated utilities - not exceeding 20% of the total
eligible capital expenditure for plant, machinery and equipment.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
For more information, visit-www.vavaclasses.com
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
2. Outline
Cost of project
Means of financing
Estimates of sales and production
Cost of production
Working capital requirement and its financing
Profitability projections
Projected cash flow statements
Projected balance sheets
3. Balance Sheet
Cash Flow
Statement
Means of Finance
and Time Phasing
Interest and Loan
Repayment
Estimate of
Working Results
Working Capital
Advance (WCA)
Cost of Project and
Time Phasing
Interest on WCA
Tax Factor
Depreciation
Cost of Production
Working Capital
Needs
Production Plan
Projected Sales
Financial Projections
4. Cost of Project
The cost of project represents the total of all items of outlay
associated with a project which are supported by long-term funds.
It is the sum of the outlays on the following:
• Land and site development
• Buildings and civil works
• Plant and machinery
• Technical know-how and engineering fees
• Expenses on foreign technicians and training of Indian technicians
abroad
• Miscellaneous fixed assets
• Preliminary and capital issue expenses
• Pre-operative expenses
• Margin money for working capital
• Initial cash losses
5. Means of Finance
To meet the cost of the project the following means of finance are
available:
• Share capital
• Term loans
• Debenture capital
• Deferred credit
• Incentive sources
• Miscellaneous sources
6. Project Financing Decision
The key business considerations relevant for the project
financing decisions are:
• Cost
• Risk
• Control
• Flexibility
7. Estimates of Sales and Production
In estimating sales and production, assume that:
• The capacity utilisation would be at 40-50 percent of
the installed capacity in the first year, 50-80 percent in
the second year, and 80-90 percent from the third year
onwards
• Production and sales will be equal
• The selling price used may be the present selling price
8. (Details may be furnished separately for each product and until the plant reaches
maximum capacity utilisation)
Product
1st 2nd 3rd 4th
yr yr yr yr
Product
1st 2nd 3rd 4th
yr yr yr yr
1. Installed capacity (qty per day per annum)
2. No. of working days
3. No. of shifts
4. Estimated production per day (qty)
5. Estimated annual production(qty)
6. Estimated output as % of plant capacity
7. Sales (qty) (after adjusting stocks)
8. Value of sales (in’000 of Rs)
Product
(i)
(ii)
(iii)
Note : Production in the initial period should be assumed at a reasonable level of utilisation of
capacity increasing gradually to attain full capacity in subsequent years.
Estimates of Production and Sales
9. Cost of Production
Given the estimated production, the cost of production may be
worked out. The major components of cost of production are:
• Material cost
• Utilities cost
• Labour cost
• Factory overhead cost
10. Working Capital Requirement and Its Financing
In estimating the working capital requirements and planning for
its financing, bear in mind the following:
• The working capital requirement consists of raw materials and
components, work-in-process, finished goods, consumable stores,
debtors, and operating expenses.
• The principal sources of working capital finance are working capital
advances provided by commercial banks, trade credit, accruals and
provisions, and long-term sources of financing.
• There are limits to obtaining working capital advances from
commercial banks. They relate to the maximum permissible bank
finance for working capital and the amounts that can be raised
against each individual current asset.
11. Profitability Projections ( or Estimates of Working Results)
Given the estimates of sales revenues and cost of production, the next step is
to prepare the profitability projections or estimates of working results (as
they are referred to by term-lending financial institutions in India). The
estimates of working results may be prepared along the following lines:
A Cost of Production
B Total administrative expenses
C Total sales expenses
D Royalty and know-how payable
E Total cost of production (A+B+C+D)
F Expected sales
G Gross profit before interest
H Total financial expenses
I Depreciation
12. J Operating Profit (G - H - I)
K Other income
L Preliminary expenses written off
M Profit/loss before taxation (J+K - L)
N Provision for taxation
O Profit after tax (M - N)
Less Dividend on
- Preference capital
- Equity capital
P Retained profit
Q Net cash accrual (P+I+L)
13. Sources of Funds
1. Share issue
2. Profit before taxation with interest added back
3. Depreciation provision for the year
4. Development rebate reserve
5. Increase in secured medium and long-term borrowings for the project
6. Other medium/long-term loans
7. Increase in unsecured loans and deposits
8. Increase in bank borrowings for working capital
9. Increase in liabilities for deferred payment (including interest) to machinery
suppliers
10. Sale of fixed assets
11. Sale of investments
12. Other income (indicate details)
Total (A)
Cash Flow Statement
14. Disposition of Funds
1. Capital expenditure for the project
2. Other normal capital expenditure
3. Increase in working capital*
4. Decrease in secured medium and long-term borrowings
- All India Institutions
- SFCs
- Banks
5. Decrease in unsecured loans and deposits
6. Decrease in bank borrowings for working capital
7. Decrease in liabilities for deferred payments (including interest) to machinery
suppliers
8. Increase in investments in other companies
9. Interest on term loans
15. 10. Interest on bank borrowings for working capital
11. Taxation
12. Dividends
- Equity
- Preference
13. Other expenditure (indicate details)
Total (B)
- Opening balance of cash in hand and at bank
- Net surplus/deficit (A-B)
- Closing balance of cash in hand and at bank
* Working capital here is defined as: (Current assets other than cash )-
(Current liabilities other than bank borrowings)
16. Projected Balance Sheet
For preparing the projected balance sheet at the end of year n+1, we
need information about the following:
• the balance sheet at the end of year n
• the projected income statement and the distribution of earnings for
the year n + 1
• the sources of external financing proposed to be tapped in the year
n+1
• the proposed repayment of debt capital (long-term, intermediate
term, and short-term) during the year n + 1
• the outlays and the disposal of fixed assets during the year n + 1
• the changes in the level of current assets during the year n + 1
• the changes in other assets and certain outlays like preoperative and
preliminary expenses (which are capitalised) during the year n + 1
• the cash balance at the end of year n +1
17. • To judge a project from the financial angle, we need information about the
following : (i) cost of project, (ii) means of financing, (iii) estimates of sales and
production, (iv) cost of production, (v) working capital requirement and its
financing, (vi) estimates of working results (profitability projections), (vii) break-
even point, (viii) projected cash flow statements, and (ix) projected balance sheets.
• The cost of project represents the sum of all items of outlay associated with a project
which are supported by long-term funds. It is the sum of outlays on the following:
(i) land and site development, (ii) buildings and civil works, (iii) plant and
machinery, (iv) technical know-how and engineering fees, (v) expenses on foreign
technicians and training of Indian technicians abroad, (vi) miscellaneous fixed
assets, (vii) preliminary and capital issue expenses, (viii) pre-operative expenses, (ix)
provision for contingencies, (x) margin money for working capital, and (xi) initial
cash losses.
• To meet the cost of project, the following sources of finance (referred to commonly
as the means of finance) may be available: share capital (equity capital and
preference capital), term loans (rupee term loans and foreign currency term loans),
debenture capital (non-convertible debentures and convertible debentures), deferred
credit, incentive sources (seed capital assistance, capital subsidy, and tax deferment
or exemption), and miscellaneous sources (unsecured loans, public deposits and lease
and hire purchases finance)
Summary
18. • To determine the specific means of finance for a given project, the following
should be borne in mind:(i) norms of regulatory bodies and financial institutions,
and (ii) key business considerations, namely cost, risk, control, and flexibility.
• Typically, the starting point for profitability projections is the forecast for sales
revenues. In estimating sales it is reasonable to assume that capacity utilisation
would be somewhat low in the first year and rise thereafter gradually to reach
the maximum level in the third or fourth year of operation.
• The major components of cost of production are: material cost, utilities cost,
labour cost, and factory overhead cost. The material cost comprises the cost of
raw materials, chemicals, components, and consumable stores required for
production. The cost of utilities is the sum of the cost of power, water, and fuel.
The labour cost includes the cost of all manpower employed in the factory. The
expenses on repairs and maintenance, rent, taxes and insurance on factory
assets, and so on are collectively referred to as factory overheads.
19. • In estimating the working capital requirement and planning for its financing, the
following must be borne in mind: the build up of current assets till the rated level
of capacity utilisation is reached, the maximum permissible bank finance as per
the second method of lending recommended by the Tandon Committee, and the
margin requirements against various current assets.
• The profitability projections or estimates of working results (as they are referred
to by term-lending financial institutions) are prepared along the following lines:
(i) cost of production, (ii) total administrative expenses, (iii) total sales expenses,
(iv) royalty and know-how payable, (v) total cost of production (vi) expected sales,
(vii) gross profit before interest, (viii) total financial expenses, (ix) depreciation,
(x) operating profit, (xi) other income, (xii) preliminary expenses written off, (xiii)
profit/loss before taxation, (xiv) provision for taxation, (xv) profit after tax, (xvi)
dividend,(xvii) retained profit, and (xviii) net cash accrual.
• The cash flow statement shows movement of cash into and out of the firm and
its net impact on the cash balance with the firm.
• The balance sheet, showing the balance in various asset and liability
accounts, reflects the financial condition of the firm at a given point of time.