An Business Plan on

Entrepreneurship Management
“Sahyog Pathological Laboratory”

Submitted To:

Submitted By:
Group No. : 11
MBA-3rd SEM (CORE)
Class: MBA CORE 4B

1
 Group Members
S.N. Name Roll No.

1 Sameer Narang 130

2 Sarthak Palkar 134

3 Shailesh Firke 135

4 Shalaka Rane 136

5 Sheetal Katkade 138

6 Siddharth Singh 149

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TABLE OF CONTENT

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 SR. PAGE
NO TOPIC NO.
1 Executive Summery 1
2 The Company
2.1 Genesis 2
2.2 Mission Statement 2
2.3 Business Objective, Market and Service Offerings 2
2.4 Customer Pain Point 3
2.5 Proprietary Technology 4
2.6 Value Proposition 5
3 The Team 6
4 Certification
4.1 NABL Certification 8
4.2 Accreditation Process 10
5 Operational Plan 13
6 Marketing Plan
6.1 Market Analysis Summary 14
6.2 Market Research 14
6.3 Market Segmentation 14
6.4 Target Market Segment Strategy 15
6.5 Service Business Analysis 16
6.6 Competition and Buying Patterns 16
6.7 Roll-Out Plan 16
7 Strategic Plan
7.1 Strategy and Implementation Summary 17
7.2 Competitive Strategy 17
7.3 Marketing Strategy 17
7.4 Key Success Factors 18
7.5 Future Service 19
7.6 Risk Management 19
8 Financial Plan
8.1 Partnership Incorporation Details 20
8.2 Profit Projection 21
8.3 Utilization of Fund 22
8.4 Break Even Analysis 23
8.5 Financial Assumptions 24
9 Appendices
9.1 Certificate 25
9.2 Lab Layout 26
9.3 Profit and Loss Statement for 3 Years 27
9.4 Balance Sheet for 3 Years 30

Laboratory Business Plan

4
 Sahyog Pathological Laboratories (SPL)

1. Executive Summary:

Pathological Laboratories today can expand and diversify as never before

beyond their traditional services. Advancing technologies continuously
produce new tests not only for the sick but also for the healthy and
asymptomatic. Some of the multiple opportunities now open to Pathological
labs include testing for government, community, school, and industry;
reference testing and consulting for other laboratories; and running testing
clinics at shopping malls.

Sahyog Pathological laboratory will be a start-up company committed to

providing the most convenient, friendliest blood testing service to the
physicians and the people of the Kolad (Dist. Raigad). Sahyog Pathological
laboratories will focus on quality management, reference systems, in vitro
diagnostic testing (like ELISA Test), and antimicrobial susceptibility testing.
The main fields range from laboratory measurement of quantities in samples
of biological origin, testing the susceptibility of antimicrobial agents against
bacteria involved in infectious disease, quality, competence, safety in the
laboratory, and testing at the point-of-care.

Benefits already realized through the technical committee’s work include

the availability of standards for medical laboratories for implementing
quality management systems based on the standards defined by National
Accreditation Board for Testing and Calibration Laboratories (NABL) and
The Bureau of Indian Standards (BIS). The new standards will intend to
promote a common approach to the quality management of medical
laboratories and to all aspects of operation, from identification to the
collection to examination of clinical samples.

2. The Company

5
1. Genesis:

Sahyog Pathological Laboratory will be formed and registered in Kolad

(Dist. Raigadh), Maharashtra. Sahyog Pathological Laboratory will be a
Partnership Entity owned by six members. Sahyog Pathological Laboratory
will own an Area in Kolad to build its own Central Laboratory, which will
be at the centre of the Raigad district. There currently is no laboratory within
the nearby areas of Kolad, and doctors are forced to send their patients
across villages to have blood drawn and analyzed. And this shows us the
way to generate an idea of opening the Sahyog Pathological Laboratory in
Kolad, which is at equidistance from most of the nearby villages.

2. Mission Statement:

It is SPL' mission to serve local physicians with fast, accurate, private,

reasonably priced blood testing services. SPL exists to exceed all of their
customer's expectations.

3. Business Objectives, Market and Services Offerings:

3.1: Objectives
SPL has established three significant objectives to pursue.
• The first is securing 80% of the physicians in the Mangaon, Roha,
Khalapur and Pen building as customers.
• The second objective is to develop 20% of revenue from
physicians who practice in the nearby vicinity.
• The third objective is the desire to reach profitability with 12 months.
This is especially important since SPL will be using own investments
by the partners would like to see a positive ROI fairly soon.

3.2: Market

SPL has identified four market segments to serve.

• First is the large number of physicians that are practicing in the
Mangaon, Roha, Khalapur and Pen.
• Second are the Hospitals where SPL will lease space for sample
collection centers.

6
 • The third group is direct customers who will be coming to main lab
for testing.
• The fourth are Insurance companies requiring medical checkups for
policy holders.

3.3: Services
SPL offers a comprehensive battery of blood tests for physician's patients.
Several tests will be done in-house including:
• CBC- A complete test of red blood cell count, white blood count and
a platelet count. Each of these three can be ordered individually if
needed.
• Blood sugar test- Frequently requested for diabetics or possible
diabetics.
• Electrolyte testing- For patients who are on diuretics and there is
concern that they may be losing too many of their electrolytes.
• Creatine- Often used to check kidney functioning or to determine if
there is heart or kidney problems.
• Other types of blood analysis can be done with the specimen sent to a
central lab for testing.

4. Customers Pain Point:

Currently, when the doctors need blood work done, they have to send their
patients to an off-site laboratory, which is far from the doctor's office and
outside the village. The patient needs to travel long distance for the blood
test to be done. And in some critical cases it is not possible for the patient to
travel such a long distance and thus at least the facility for the blood
collection should be provided in the hospitals of villages. Also the
availability of trained professionals for blood collection at Hospitals is a
major issue of concern. Thus to overcome this we have planned to open our
laboratories in the central location i.e. Kolad, which is at equidistance from
most of the villages and Talukas. The convenient central location of our
laboratory will reduce the time and risk of customers. Also we have planned
to lease the collection centers at hospitals of our target villages so that
patients with critical conditions need not to visit our central laboratory for
the blood sample collection.
There are only few Pathology Laboratories in Raigadh District and that too
with less or no advancements. Also it takes four to five days to send the
reports of the testing to the desired location. In serious cases getting the

7
report on time is very much crucial and delay of four to five days could be
danger for the patient. Thus it is required that testing report should be sent to
the doctors within 24-48 hours so that preventive measures could be taken
by the doctors on time.
5. Proprietary Technology:
Sahyog Pathological Laboratories will be equipped with most advance
technological instruments and techniques for the rapid and accurate testing
and for quick report generation system. Some of the advance equipments
required for Sahyog Medical Laboratories as the start up of the business is
listed below:
• Distilling Water Still
• Furnaces
• Heating Mantle
• Hot Air Ovens
• Hot Air Sterilizers
• Hot Plate
• Humidity Cabinet
• Incubators
• Laboratory Balances
• Laminar Air Flow
• Magnetic Stirrer
• Rotator Shaker
• Vortex Mixer
• Water Bath
• Research Microscope
• Diagnostic Sets
• Elisa Kits
• Laryngoscopes ,
• Oto-opthalmoscope set
• Otoscopes
• Proctoscopes
• Sphygmomanometers
• Stethoscopes etc.

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6. Value Proposition:

Value Proposition Features of Sahyog Pathological Laboratory includes:

• NABL and BIS certifications.
• Convenience (blood can be drawn within the same building),
• Faster service (there is no driving or transportation time to get the
blood drawn),
• Comparatively less and affordable pricing for testing.
• The most commonly requested tests and analysis occurs at central
laboratory guaranteeing results within 24 hours.

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 3. THE TEAM

Shailesh Firke (C. E. O.) aged 24 years, has completed his pharmacy form
Mumbai University. He was working with Tata Consultancy services for
Roche pharmaceuticals in clinical Trials. He has also completed his summer
training from Pfizer and samarth pharmaceuticals. (MR) as a Trainee. He
has also completed DMLT from Mumbai University and currently pursuing
MBA in Marketing from.
Siddharth Singh, (Operational Manager) age 24 years, has mastered in
Biotechnology from Bangalore University. He had prior experience of two
years as a micro biologist in Reliable Analytical Laboratory. He is currently
pursuing his MBA in specialization in Marketing from. He has also done his
summer training from CEAT Tyres Ltd.

Sarthak Palkar, (Business Development officer) age 22 years. He has

graduated in Bachelors of Science (specialization in Biotechnology) from
Pillai’s College; New Panvel. He has worked as a Financial Advisor in Bajaj
Alliance Insurance Company in the year 2007-08. He is currently pursuing
its MBA, specialization in Marketing from. He has done his summer
training from Bajaj Alliance, Panvel.

Sameer Narang, (Marketing Manager) 23 years old, has done his

graduation in Bachelors of commerce from Mumbai University. He has
worked as an executive in Max New York Life Insurance Ltd. Currently
pursuing its MBA in Marketing. He has done his summer internship in Max
New York Life Insurance Ltd.

Shalaka Rane (Finance Head ), 23 years old, she has done her graduation
in Bachelors of commerce(Specialization in Banking and insurance ) from
KELKAR college of Commerce & Science, Mumbai University .She has
worked as Quality Analyst in Syntel Global Pvt ltd. for one year. She is
currently pursuing her MBA in Finance from. She has done her summer
training from Abhyudaya Co-operative bank as Trainee.

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Sheetal katkade (Administration head), age 23 yrs,has graduated in IT
from Ruparel College ,Mumbai university .she has prior experience of one
year in Administrative Dept. at Accenture. She is currently pursuing MBA in
HR from. She has done her summer training from Reliance Retail as
Trainee.

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 4. Certification:

Laboratory accreditation is a process by which an authoritative body gives

formal recognition of technical competence for specific tests/measurements,
based on third party assessment and following international standards.

3.1: National Accreditation Board for Testing and Calibration

Laboratories (NABL):

“National Accreditation Board for testing and calibration Laboratories”

(NABL), it is an autonomous body under the aegis of Department of Science
& Technology, Government of India and is functioning since 1985 under
Quality Council of India (QCI).

It’s a sole accreditation body for testing and calibration laboratories

authorized by Government of India, established with an objective to provide
government, industry associations and industry in general with a scheme for
third-party assessment of the quality and technical competence of testing
and calibration laboratories. NABL maintains a linkage with International
Laboratory Accreditation Co-operation (ILAC) & Asia Pacific Laboratory
Accreditation Cooperation (APLAC).

The National Accreditation Board for Testing and Calibration Laboratories

(NABL) undertakes the assessment and accreditation of Testing and
Calibration Laboratories, in accordance with the international standard ISO /
IEC 17025 and ISO 15189.

Accreditation areas:

Testing: Biological, Chemical, Electrical, Electronics, Fluid-Flow,

Mechanical, Non-Destructive Testing, Photometry, Radiological, Thermal,
Forensic, Medical.

Calibration: Electro-Technical, Mechanical, Fluid flow, Thermal &

Optical, Radiological

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Achievements & International Linkages:

The Board is a signatory of Mutual Recognition Arrangement (MRA) of

International Laboratory Accreditation Co-operation (ILAC) and Asia
Pacific Laboratory Accreditation Co-operation (APLAC).

ISO 17025/IEC 17025: 1999:

International Organisation for Standerdisation (ISO) 17025 (more

specifically ISO/IEC International Electromechanical Commission
17025:1999) is an international standard for calibration and testing labs
“General Requirements for the competence of testing and Calibration
Laboratories”.

It requires labs to demonstrate that they:

• Operate a quality system covering processes, documentation and

management.
• Generate technically valid results taking account of the equipment,
procedures, and personnel.

The laboratories seeking accreditation are assessed on the basis of its

capability to perform tests(s)/ calibration(s) and provide accurate and
reliable results, in accordance with ISO/IEC 17025:1999 and relevant
specific criteria.

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3.2 Accreditation Process:

14
15
16
 5. Operational Plan

Sahyog Pathological Laboratories offers routine blood tests on-site (Directly

at collection centre) and more complex blood tests outsourced to a central
lab. SPL will be located at Kolad which is at the centre of the Raigad
district. Currently, when the doctors need blood work done, they have to
send their patients to an off-site laboratory, a 15 minute drive from the
doctor's office (As our laboratory is situated in the central location almost
equidistance from all the target villages).
Once Sahyog Pathological Laboratories is up a running the doctors will be
able to send their patients to SPL's offices. For simple tests Sahyog
Pathological Laboratories will do the analysis at the collection centre itself,
for more complex blood work the specimens will be sent to an outsourced
central laboratory.
Sahyog Pathological Laboratories will offer the following tests at centre:

• Red blood cell count- Rs. 50

• White blood cell count- Rs. 50
• CBC (a more complete test that counts platelets in addition to white
and red blood cell counts)- Rs. 100
• Blood sugar (suited for diabetics or people who are trying to
determine if they have a blood sugar problem)- Rs. 150
• Electrolytes (for people on diuretics)- Rs. 200
• Creatine (tests for heart or kidney difficulties)- Rs. 200

If more extensive blood work is needed, blood will be drawn at the

collection centre and sent to a central laboratory. Sahyog Pathological
Laboratories will use a courier service that transports the samples in an ice
cooler. The specimens are tested within 24-36 hours of receipt at the central
lab and the results are returned to SPL via email.

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 6. Marketing Plan

6.1 Market Analysis Summary

Sahyog Patohological Laboratories has identified four market segments.

• First is the large number of physicians that have a practice in the

Mangaon, Roha, Khalapur and Pen.
• Second are the Hospitals where SPL will lease space for sample
collection centers.
• The third group is direct customers who will be coming to main lab
for testing.
• The fourth are Insurance companies requiring medical checkups for
policy holders.

6.2 Market Resarch

Sahyog Pathological Laboratory has conducted preliminary market research
through interview with Surpunch of Kolad village and some medical
practitioners in the nearby vicinity. During the interviews few issues which
came up were as follows:

1. Requirement of central laboratory.

2. Requirement of blood collection centers in hospitals.
3. Need to get the report within two days.
4. Blood testing at affordable price.

6.3 Market Segmentation

Sahyog Patohological Laboratories will provide services geared to four

distinct customer segments.

1. Physicians practicing in the Mangaon, Roha, Khalapur and Pen-

This segment is made up of physicians that practice medicine in
offices that are located within the target villages (Taluka). There is a
wide range of specialties represented, but predominantly primary care

18
 and general practitioners. Most types of doctors need blood work
done on their patients with some regularity. Target physicians have
always just had to send their patients to another area of town to have
blood drawn and analyzed. This is not convenient for their patients
and is time consuming, so physicians in the near by vicinity would
generally be quite happy if there were a blood laboratory at
convenience distance from their place so that they could get the
results as quickly as possible.
2. Hospitals (Sample Collection Centers) – SPL will provide the
facilities of direct collection centers in the hospitals of target villages
and talukas. SPL will also provide quick testing facility at the
collection centers for simple blood tests; whereas for the complicated
testing requirement samples will be drawn at the collection centers by
the experts and send to the central laboratory.
3. Direct Customers – SPL will also facilitates direct testing
requirements for the people of the villages (Like getting the blood test
done for blood group and any other general tests).
4. Insurance Companies: SPL will have tie ups with the various
insurance companies as these companies require various tests for
policy holders.

6.4 Target Market Segment Strategy

It is fairly intuitive as to why physicians within the targeted villages will be

targeted; they are the customers who would have the most demand for
Sahyog Pathological Laboratories' services. Almost all types of doctors
regularly have patients who need blood testing done. Assuming that the lab
accepts most of the common types of medical insurance, the lab is generally
chosen by being the most convenient for the patient since they are the ones
who must travel to the lab to have the blood drawn.

For physicians, Sahyog Pathological Laboratories would be the most

convenient laboratory, being located within the nearby area. No longer
would the doctor have to ask the patient to travel to have blood drawn.

19
6.5 Service Business Analysis

Blood laboratories all provide similar services. Most accept a wide range of
insurance plans. Some do the tests in-house, others will outsource the tests.
Where the tests are completed is not really that significant. To be
competitive the labs need to have the tests completed within a couple of
days at the most. This means it all comes down to convenience. Labs serve
the physicians and doctors that are closest in terms of geographic proximity.
In most cities/towns, you will see labs placed throughout the city serving the
different clusters of physicians.

SPL is different, or at least if different because since many years the people
of Kolad and other nearby areas have been trying to have a laboratory locate
within the same area to serve the large population of doctors. Kolad has had
difficulty attracting qualified technical people, in this instance phlebotomists
(blood drawing technicians) and chemical analyzers. This is the explanation
for the absence of a blood laboratory in the targeted villages. The need has
existed, just no one has "stepped up to the plate", at least not until now.

6.6 Competition and Buying Patterns

In Kolad, at present there is no such kind of labs except one or two labs that
too which are at the distance of 40km. Also the results provided by them
would come after 4-5 days because of the distance and lack of talented staff.

The closest competitor to Sahyog Patholgical Laboratories is Vinayak

Laboratories located 40 km away from Kolad situated in Mangoan. This is
the facility that 80% of the physicians in the Kolad and other nearby areas
currently use. It is used by these physicians because of convenience, it was
the closest laboratory. As mentioned earlier, blood testing service providers
are chosen based on convenience, how close they are to the patients. Hours
of operation (i.e. longer hours/evening hours) are insignificant since
physicians are only available during traditional daytime office hours.

6.7ROLL-OUT PLAN
We would start operating from January 2010 and after a gaining some
experience we would target other villages and districts of Maharashtra.
Further by 2017 we would expand our business to National level.

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 7. Strategic Plan
7.1 Strategy and Implementation Summary
Sahyog Pathological Laboratories will leverage their competitive edge of a
convenient location within a large medical facility to help it quickly gain
market share. SPL has developed a strategic marketing plan that will use
several different methods to develop local awareness of it and the benefits
offered. Sahyog Pathological Laboratories has also developed a sales
strategy to help turn the qualified leads into clients by emphasizing the
significant benefits that physicians can offer their patients by sending them
to Sahyog Pathological Laboratories.
7.2 Competitive Strategy
Sahyog Pathological Laboratories' competitive edge is convenience. In the
blood analysis industry it is hard to differentiate yourself from competitors
assuming a few basic levels of care and performance:

• You accept several popular insurance plans; otherwise many patients

could not use your service.
• You provide fast analysis; tests are completed and reported within 48-
60 hours at the most.
• You provide accurate, precise results.

If these basic, foundational levels of performance are met, then you are
competitive. This is why convenience is so important and why it is an
effective way of distinguishing one lab from another. The physician is
looking for a way to get a blood sample from a patient that is easiest from
the patient's perspective.
Other factors include maintaining a high level of customer satisfaction. If
these were not met it would not "kill the deal" but would decrease sales.
Here are some important customer service elements that all employees of
Sahyog Pathological Laboratories will emphasize:

7.3 Marketing Strategy

Sahyog Pathological Laboratories will undertake a marketing strategy
employing three means of communicating its new service offering:

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 • Direct Approach: Local physicians will receive a flyer announcing
the opening of Sahyog Pathological Laboratories and detailing the
services offered. A list of physicians is easily obtained through the
local licensing board.
• Personal introductions to doctors in Hospitals in nearby vicinity. A
representative from Sahyog Pathological Laboratories will visit all of
the Hospitals within the target villages and talukas as a way of
introducing SPL to the doctors. This will provide SPL with an
opportunity to develop a personal relationship with doctors,
something that is useful and valuable for service providers within a
licensed industry.
• Advertisements. Ads will be placed in the regional flyer that all
licensed physicians receive as members of their local chapter of the
Indian Medical Association (IMA).
• Briefing during GramSabha. A representative from SPL will brief
about the facilities and the services provided by SPL to the mass
people of village.
• Sponsorships. Organizing\ various sports events like kabbadi,
Cricket, etc. as these will attract many people and will serve as a good
ground for publicity.
• Free Half Yearly Check Ups of the students in different Villages.

These customer service factors will certainly be taught to all employees to

ensure the most positive patient experience.
7.4: Key Success Factors

1. Owned space in the centre location of target villages (Taluka).

2. Set up collection centers in Hospitals to outsource the more difficult

tests to central laboratry, ensuring fast service and good rates.

3. Follow a strict regime of accounting controls to help ensure
profitability.

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7.5 FUTURE SERVICES:
• In due course of time, as revenue increases our expansion plans will
be to open more laboratories in other villages of Maharashtra.
• Further we will expand our business to other states of India.
• We are also planning to expand our business by adding the diagnostic
facility and converting our pathological laboratory in Diagnostic
Laboratory.

7.6 RISK MANAGEMENT:

Market Risk: - Our primary research has shown customer’s acceptability of
our service. Also as our laboratory is in central location and equidistance
from most of the villages, we expect continuous growth and it reduces the
risks of failure of business.

Operational Risk: - As we are following the NABL & BIS certified

standards and specification for laboratory testing procedures and safety
measures, we can expect less chances of operational risks. But we need to
design a rapid action system in case of critical incidences.

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 8. Financial Analysis

8.1. Partnership Incorporation Details:

The firm will be treated as a partnership firm and the six promoters of the
business will become the partners of the firm. The partners will share profit
and losses equally amongst themselves and will contribute capital in equal
amounts. The partner will contribute Rs. 20, 00,000/ each.

Sales Forecast
14000000
12000000
10000000
8000000
Rs.
6000000
4000000 Rs.
2000000
0
Year 1 Year 2 Year 3
Year

The first year income is Rs.79,53,200. It indicates that firm has incurred
operating Expenses more. The firm will concentrate on reducing on
operating expense for increasing the profit. The second year sales increase
by 50.88% i.e.
Rs.40,46,800
(Rs, 1,20,00,000-Rs.79,53,200).

40,46,800/79,53,200*100= 50.88%. The Third year we will estimate sales

forecast 2.17%.

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8.2 PROFIT PROJECTION:

60.00% 53.69%
50.00% 40.02%
34.12%
40.00%

30.00%
%
20.00%
10.00%

0.00%
Year 1 Year 2 Year3

• Working Notes:

 Year 1
Profit After taxes = Net Profit/ Income Received *100
= 27,14,005/79,53,200*100
= 34.12%

 Year 2
Profit After taxes = Net Profit / Income Received *100
=48,02,154/1,20,00,000*100
= 40.02%

 Year 3
Profit After taxes = Net Profit / Income Received *100
= 65,83,287/1,22,60,732*100
= 53.69%

25
8.3 Utilization of Fund

The initial cost of project is Rs. 64, 09,500. The partner will contribute
Rs 20 lakh each.

Particulars Amount

Fixed Investment 55,09,500

Training to Labour 5,00,000

Advertising Expenses 1,00,000

Working Capital 3,00,000

Total 64,09,500

Working Notes;

 Fixed Investment Consist of Land, Building, Computer, Electricity

Generator & Machinery, Vehicle etc.

26
8.4 Break Even Analysis

PARTICULARS AMOUNT

Sales 79,53,200

Less: Variable Cost 45,10,400

Contribution 34,42,800

Profit Volume Ratio (P/V ratio)

= Contribution / Sales *100
=34,42,800/ 79,53,200*100
= 43.28%

Break Even Analysis

Fixed cost / PV ratio
= 512450 / 43.28%
= Rs. 11,84,034.
The firm will achieve the BEP in the First year.

27
8.5 Financial Assumption

o Fixed Assets are stated at cost less accumulated depreciation.

o Depreciation is provided using the Reducing Balancing
Method (RBM).
o The firm capitalized all costs relating to the acquisition and
installation of fixed cost.
o The financial statement is prepared to comply in all material
aspect with all the applicable accounting principle in India as
per applicable Accounting Standard.

All the sales are made on cash basis.

28
 9. Appendix

Appendix 9.1: NABL Certificate

29
Appendix 9.2: Sahyog Pathological Laboratories Layout

30
Appendix9.3: Profit and Loss Statement for 3 Years

Profit & Loss Account for 2010-11

Dr. Cr.
Particulars Amount Particulars Amount
To Insurances Premium 1,00,000 By Income Received 79,53,200
To Sales and Distribution 10,00,000
To Marketing 5,00,000
To Rent 1,46,400
To Wages & Salaries 25,00,000
To Stationeries 20,000
To Maintenances Expenses 42,000
To water charges 4,000
To Electricity Expenses 96,000
To Other Expense 40,000
To Transport Expenses 16,000
To Telephone Expenses 24,000
To Carriage Expenses 22,000
To fuel charges 80,000
To Refreshment 20,000
To Depreciation
Building 55,000
Computer 1,48,000
Equipment 1,02,950
Electricity Generator 40,000
Furniture 1,500
Vehicle 65,000
To Advertising Expenses 1,00,000
To Income Taxs@30% 1,16,345
To Net profit C/d 27,14,005

79,53,200 79,53,200

Working notes:
Profit After taxes = Net Profit / Income Received *100
= 27,14,005/79,53,200*100
= 34.12

31
 Profit & Loss Account For 2011-12
Dr. Cr.
Particulars Amount Particulars Amount
To Insurances Premium 1,20,000 By Income Received 1,20,00,000
To Sales and Distribution 7,00,000
To Marketing 3,00,000
To Rent 2,10,000
To Wages & Salaries 30,00,000
To Stationeries 32,000
To Maintenances Expenses 52,000
To water charges 7,600
To Electricity Expenses 1,22,000
To Other Expense 45,000
To Transport Expenses 20,000
To Telephone Expenses 30,000
To Carriage Expenses 27,000
To fuel charges 1,00,000
To Refreshment 22,000
To Depreciation
Building 4,950
Computer 88,800
Equipment 92,655
Electricity Generator 36,000
Furniture 1,275
Vehicle 58,500
To Advertising Expenses 70,000
To Income Taxs@30% 20,58,066
To Net profit C/d 48,02,154

1,20,00,000 1,20,00,000

Working notes:

Profit After taxes = Net Profit/ Income Received *100

=48,02,154/1,20,00,000*100
= 40.02%

32
 Profit &Loss Account for 2012-13
Dr. Cr.
Particulars Amount Particulars Amount
By Income
To Insurances Premium 1,30,000 Received 1,22,60,732
To Sales and Distribution 4,50,000
To Marketing 2,80,000
To Rent 3,20,000
To Wages & Salaries 34,00,000
To Stationeries 38,000
To Maintenances Expenses 60,000
To water charges 8,000
To Electricity Expenses 1,44,000
To Other Expense 61,000
To Transport Expenses 25,000
To Telephone Expenses 35,000
To Carriage Expenses 30,000
To fuel charges 1,20,000
To Refreshment 27,000
To Depreciation
Building 44,500
Computer 53,280
Equipment 83,390
Electricity Generator 32,400
Furniture 1,084
Vehicle 52,650
To Income Taxs@30% 2,82,141
To Net profit C/d 65,83,287

1,22,60,732 1,22,60,732

Working Notes:

Profit After taxes = Net Profit / Income Received *100

= 65,83,287/1,22,60,732*100
= 53.69%

Appendix9.4: Balance Sheets for 3 Years

33
 Balance sheet for 2010-11
Liabilities Amount Assets Amount Amount
Land 2,00,000
Partner’s Capital Building 5,50,000
Less:
Mr. Shailesh Firke 20,00,000 Depreiciation@10% 55,000 4,95,000
Mr. Siddharth Singh 20,00,000 Equipment 1,029,500
Less:
Mr. Sameer narang 20,00,000 Depreiciation@10% 1,02,950 9,26,550
Mr. Sarthak palkar 20,00,000 Electricity Generator 4,00,000
Less:
Ms. Shalaka Rane 20,00,000 Depreiciation@10% 40,000 3,60,000
Ms.Sheetal Katkade 20,00,000 Computer 3,70,000
Net Profit 27,14,005 Less: Depriciation@40% 1,48,000 2,22,000
Vehicles 6,50,000
Less:
Depreiciation@10% 65,000 5,85,000
Furniture 10,000
Less:
Depreiciation@15% 1,500 8,500
Current Assets
Cash 39,16,955
Bank 80,00,000

1,47,14,00
5 1,47,14,005

Balance Sheet for 2011- 12

34
Liabilities Amount Assets Amount Amount
Land 2,00,000
Partner’s Capital Building 4,95,000
Less:
Mr. Shailesh Firke 20,00,000 Depreiciation@10% 4,950 4,45,500
Mr. Siddharth
Singh 20,00,000 Equipment 9,26,550
Less:
Mr. Sameer narang 20,00,000 Depreiciation@10% 92,655 8,33,895
Mr. Sarthak palkar 20,00,000 Electricity Generator 3,60,000
Less:
Ms. Shalaka Rane 20,00,000 Depreiciation@10% 36,000 3,24,000
Ms.Sheetal
Katkade 20,00,000 Computer 2,22,000
Net Profit 48,02,154 Less: Depriciation@40% 88,800 1,33,200
Vehicles 5,85,000
Less:
Depreiciation@10% 58,500 5,26,500
Furniture 8,500
Less:
Depreiciation@15% 1,275 7,225
Current Assets
Cash 48,31,834
Bank 95,00,000

1,68,02,154 1,68,02,154

Balance Sheet for 2012- 13

35
Liabilities Amount Assets Amount Amount
Land 2,00,000
Partner’s Capital Building 4,45,500
Less:
Mr. Shailesh Firke 20,00,000 Depreiciation@10% 44,550 40,050
Mr. Siddharth
Singh 20,00,000 Equipment 8,33,895
Less:
Mr. Sameer narang 20,00,000 Depreiciation@10% 83,390 75,050
Mr. Sarthak palkar 20,00,000 Electricity Generator 3,24,000
Less:
Ms. Shalaka Rane 20,00,000 Depreiciation@10% 32,400 2,91,600
Ms.Sheetal katkade 20,00,000 Computer 1,33,200
Net Profit 6,583,287 Less: Depriciation@40% 53,280 79,920
Vehicles 5,26,500
Less:
Depreiciation@10% 52,650 4,73,850
Furniture 7,225
Less:
Depreiciation@15% 1,084 7,16,141
Current Assets
Cash 4,706,667
Bank 1,20,00,000

1,85,83,287 1,85,83,287

36