Armstrong Rural BPO

Introduction: Five people started a Business Process Outsourcing (BPO) centre in the village of Shivnar in Bihar to tap the potential of rural youth as well as provide employment to them. They set up the business on 1st March 2013. Following are the details of the transactions during the month of March, 2013: 1. March 1, 2013: Each person has put in Rs. 3 lac as capital (Rs. 15 lac in total). 2. March 2, 2013: They have also raised a loan of Rs 10 lac from State Bank of India (rate of interest 15% per annum) and deposited in the Armstrong Solutions Ltd. Bank account. 3. March 3, 2013: Bought office space on lease at Rs 10,000 per month, thus paid Rs. 120,000 towards rent from March 2013 to April 2014. 4. March 3, 2013: Paid Rs. 150,000 to Decoration India Ltd for furnishing the office 5. March 4, 2013: Purchased computers worth Rs 500,000 from HCL InfoTech; half payment in cash and half on credit payable by 5th April 2013. 6. March 4, 2013: Purchased networking hardware worth Rs. 200,000; paid advance internet rental Rs. 120,000 from March 1, 2013 to Feb 29, 2014 to Sify. 7. March 4, 2013: Wiring and Installation charges of Rs. 60,000. 8. March 6, 2013: Signed a contract worth Rs. 100,000 with Payroll HR Consultancy for recruiting personnel and paid in cash. 9. March 7, 2013: Spent Rs. 100,000 for pitching to get new projects (Deferred Expenditure for 5 yrs). 10. March 9, 2013: Paid Rs. 75,000 as software license fee. 11. March 10, 2013: Recruited 2 managers for a salary of Rs. 30,000 per month each and 10 local youth for a salary of Rs. 10,000 per month each, paid via cheque. 12. March 11, 2013: Miscellaneous expense of Rs. 50,000 to various facilities (refreshments, lunch etc.) 13. March 12, 2013: Signed a 1-month contract worth Rs. 100,000 with NIIT for training these local youth and paid via cash 14. March 14, 2013: Signed a 5-year contract worth Rs. 6,000,000. Payment of Rs. 2,000,000 was received as a onetime payment and Rs. 1,000,000 payment per annum from next year. 15. March 14, 2013: Withdrew Rs. 500,000 from bank for various expenses. 16. March 15, 2013: Invested Rs. 10, 00,000 in mutual fund. 17. March 17, 2013: Started computer and internet awareness centre for a nominal fee of Rs. 100, trained 100 local youth. 18. March 18, 2013: Spent Rs. 100,000 for CCTV and Inverter installation 19. March 19, 2013: Due to high voltage power supply some computer got malfunctioned. Rs. 50,000 was spent on its repair.

20. March 20, 2013: Paid Rs. 50,000 as fine to Vodafone for missing SLA (Service Level Agreement) 21. March 21, 2013: Paid Rs. 60,000 towards Electricity bill. 22. March 23, 2013: Due to recent instances of theft in the locality, security services were hired from a local firm for Rs. 20,000 per month. Bill for current month was paid. 23. March 29, 2013: Had to donate Rs. 10,000 for local festival organising committee. 24. Mar 31, 2013: Paid Rs. 250,000 via checks bonus to all employees as performance allowance. 25. Mar 31, 2013: Repaid half of the loan (Rs. 500,000) along with Rs. 6250 as the interest.