Budgeting

Fixed assets investment

Particular Unit Quantity Total
1. Land
2. Building and civil works
a) Office room
b) Storage room
c) Guard Room
d) Goat shed
e) Water trough cemented
f) Dipping Tank
g) Boring
h) Hand pipe
i) Fencing
3. Farm Machinery and equipment
Electrical Chaff cutter
Manual chaff cutter
Can, bucket, chin, shovel
Wheel barrow
Spade
Sickle
Laboratory setup
Tree cutter
Plant pruning set
Hand spreyer
Burdizo castrator and
accessories

Teeth and hoof cutture
Tag/record
4. Furniture, Fixture, Office Equipment
Tables
Chairs
Sofa sets
Carpeting
Computers
Telephone sets
Freeze
Cupboard
Notice board
5. Pre-operational expenses
a) Registration
b) Financial Plan
c)Project management
expenses Before operation

Total TVF


Operating Fixed cost at 100% capacity utilization

Depreciation calculation at 100% capacity utilization

Value Depreciation rate 1 2 3 4 5
Building 100 5% 100*0.05 (100-100*0.05)*0.05
Machinery and equipments 15%
Vehicle 20%
Furniture and Fixtures 25%
Goat 10%
Total

Interest calculation at 100% capacity utilization
Interest calculation
Let loan amount is 100 it is to be paid in 5 year

1 2 3 4 5
Equal payment 20 20 20 20 20
Remaining
principle
100 80 60 40 20
Interest to be
paid
K=100*0.16 L=80*0.16 M=60*0.16 N=40*0.16 O=20*0.16
Total P

Insurance calculation @ 100% capacity utilization
Insurance1% 1 2 3 4 5
Total value of fixed assets excluding land TVF
Remaining value
of fixed assets
X=TVF-1
st

year
depreciation
X-2
nd
year
depreciation
In similar way
Insurance amount


Total insurance amount = ?













Particular Unit Quantity Annual amount
Fixed utility cost
a) Telephone charge
b) Drinking water charges
c) Cable networks
d) Rent
Total Fixed utility cost
Office overhead
a) Legal and audit fees
b) Stationery & printing
c) Postage, telephone etc.
d) Travelling
e) Publicity & promotion
Total office overhead cost
Manpower
a) Project Manager
b) Labor
c) Supervisor
d) Economic consultant
e) Driver
Sub total A
Fringe benefit @20% of total manpower cost B
Total manpower cost A+B
Total


Fixed cost according to capacity utilization

Particular Value
obtain
Year 1 Year 2 Year 3 Year 4 Year 5
Capacity utilization 60 70 80 90 100
Depreciation
Interest
Insurance
Fixed utility
cost

Total office
overhead cost

Total
manpower
cost

Total








B
.
Variable Cost:


1 Utilities
A Electricity
Unit/Month Unit Charge
per
Monthly charge Annual,
Charge
Over the minimum


Charges


B Telephone
Total Call Per call Per month
Per annum
Over the minimum


D Drinking water
Total liter Per liter Per month
Per annum
Over the minimum


Charges


Sub Total

20,700
2 Fuel
Monthly
consumed Per liter
Annual
consumption
Annual
Charge
Petrol


Diesel

Sub Total 97,800
3 Operating Materials
Unit of
measurement Unit
Charge per unit
per yr
Total
charge

Concentrate ration ton

Medicine and feed
additives, AI
As a whole

Ginger seed Ton

Turmeric seed Ton

Yam seed Ton

Pea seed Ton

Chemical fertilizer As a whole

Fertilizer (FYM) Ton
Sub Total 6,056,772
4
Repair & Maintenance

Annual Rate
Value of the
things
a) Building
2%


b) Machinery &
Equipment, %
3%


c) Furniture, Office
Equipment, %
2%

d) Vehicle, %
5%

Sub Total

Total

Variable cost according to capacity utilization

S.N. Particulars Total Year1 Year2 Year3 Year4 Year5
1 Capacity utilization %

60 70 80 90 100
2 Utilities

3 Fuel

4 Operating materials

5 Repair and maintenances

5 Grand total



Sales revenue

Sn. Items Unit Quantity Rate (Rs.) Total (Rs.)
A Goat
sale of male
meat goat
no
sale of breeding
buck
no
sales of culled
goat
no
sales of
breeding
hoggets
no
Manure Tractor
subtotal
B Timber
Chinaberry fire
wood
ft
Chinaberry saw
log
ft
Babul ft
Chiraito Kg
subtotal
C short term
commodity

Cowpea Ton
Pea Ton
Turmeric Ton
Ginger Ton
Yam Ton

D Banana Plant
Total Revenue


Sales revenue according to capacity utilization
1 2 3 4 5
Capacity
utilization
60 70 80 90 100
Total sales
revenue


B/C ratio, NPV, IR, payback period, Break even analysis and sensitivity analysis table

Year Fixed cost Variable cost TC Sales revenue
0
1
2
3
4
5

Break even point = FC/SR-VC

Sensitivity analysis
1. Check out when sales revenue decreased by 10%
2. Check out BEP when Variable cost increased by 10%