Scba of Yummy

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    PRESENTED BY:

    NEHA ARORAPALAK THAKKAR

    CHETASH MEHTA

    SANDEEP KR. YADAV

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    INTRODUCTION

    PRODUCT:- INSTANT NOODLES

    BRAND NAME:-YUMMY NOODLES

    SECTOR:-FAST MOVING CONSUMER GOODS

    COMPANY NAME:- YUMMY NOODLES PVT. LTD.

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    SHADOW PRICING

    Firstly we need to decide that whether the good is Tradable orNon-Tradable ?

    Secondly we need to see that whether the good is Merit or De-Merit ?

    Source of shadow prices.

    How our project is going to effect following markets

    Factor market:- ?

    Product market:- ?

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    ABOUT RATIONALE

    Market Imperfection

    Externalities

    Taxes and Subsidies.

    Impact on income distribution

    Concern for Savings.

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    YUMMYS P&LA/C

    ITEMS INRS FOREX TOTAL

    SALES 16,20,000 - 16,20,000

    LESS

    COGS ( 5,74,700 ) - ( 5,74,700 )

    GROSS MARGIN 10,45,300 - 10,45,300

    OFFICE ANDADMIN

    ( 3,60,000 ) - ( 3,60,000 )

    ADVT ANDPROM

    ( 3,40,000 ) - ( 3,40,000 )

    PROFIT 3,45,300 - 3,45,300

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    DOMESTIC RESOURCE COST

    y DRC= A+B+C / (P-( Q+R+S+T)* Exchange rateWhere,

    A= annual charge on domestic capital at the rate of 10%

    B= annual depreciation on domestic capital at 8%

    C= annual cost of non-traded inputs

    P= sales realization at international prices (exports)

    Q= annual charge on imported capital assets at 10%

    R= annual depreciation on imported capital assets at 8%S= annual cost of imported inputs

    T= annual cost of domestically procured, but tradable inputs

    Exchange rate= Rs.43.38 per US dollar

    Sales realization at international price (export) is estimated around 280 million

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    CAPITALEMPLOYED IN THE PROJECTITEMS T.C ( IN lacks ) DOMESTIC CAP IMPORTED CAP

    LAND 15 15 -

    BUILDING 10 10 -

    PLANT 140 40 100

    T AN & 5 5 -

    MI FIX D A T 30 20 10

    P M & P 0OP XP 45 45 -

    ONTING N I 25 05 20

    W. .P 40 25 15

    TOTAL AP MP 310 165 145

    HA G ON AP (10% )

    16.5 14.5

    D P ON AP ( 8% ) 10 10.4

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    ITEM TOTAL COST (

    IN MILLION )

    NON-

    TRADABLE

    TRADABLE

    COMP

    IMPORTED

    COMP

    RAWMATERIAL

    140 15 100 25

    UTILITIES 20 15 05 -

    REPAIRSMAINTENANCE

    10 10 - -

    WAGES SAL 20 20 - -

    RENT INS 03 03 - -

    ADM EXPENSE 05 05 - -

    SELL EXP 07 07 - -

    TOTAL OP

    COST

    205 75 105 25

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    DRC of the projectDRC= 16.5+10+75/280- (14.5+10.4+105+25)*43.38

    DRC= 35.20

    Thus the domestic resource cost per USD saved is Rs 35.20,

    which is lower than the present exchange rate. Hence it isdesirable to manufacture the product in the country ratherthan import it.

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    TANGIBLE BENEFITS

    Low cost Employment opportunities Income for govt. Hygienic Food Inflow of Forex

    INTANGIBLE BENEFITS

    Time savingAdditional food option Enjoyment Easy to cook

    TANGIBLE COST

    Diversion in wheatconsumption

    Increase in Consumption exp.

    INTANGIBLE COST

    Change in Food Habit

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