Table of Contents

List of Figures/Diagrams

List of Tables
 Acknowledgment

Introduction

1. Introduction (100-150)
The background of the public company you are choosing to develop and propose your business idea/s

Eg 1- DO NOT COPY
Named a world heritage site by UNESCO, Sinharaja Forest Reserve is a World Heritage Site. It is one of
Sri Lanka's most popular national parks for its large biodiversity. Initially, the Sinharaja National Forest
Management and Conservation Plan ("Forest Plan") was created, along with financial insight modules. By
attacks (deforestation) and forest fire caused by humans, Sri Lanka is gradually increasing the danger to
natural biodiversity. It is therefore important to protect the Sinharaja Forest against forest fires, to
prevent wild animals attack and to avoid illegal activities within the forest.

UNESCO's Natural Heritage site, Sinharaja Forest has proposed a project by an NGO organization that
requires capital investment to improve the current resources at the site. This project centred with the core
ideas, Revenue model, potential costs which are itemized, financial decisions using investment appraisal
techniques.
The proposed project-
Bio-fencing at the forest boundary to prevent attacks by wild animals and prevent illegal activities

EG2- DO NOT COPY

Sundarbans is a beautiful mangrove forest which stretches as far as the Hooghly River in west
Bengal, India and the Baleshwar River in Bangladesh. UNESCO has designated four protected
areas as world heritage sites. This mangrove swamp is home to a number of very special trees
called Sundari and Geva. 453 different animals also live here. The mangrove forest is home to
120 fish, 42 mammals, 290 birds, 8 amphibians and 35 reptiles.
This assessment aims to launch management strategic plans to protect this World heritage site
and implement financial plans relevant to conserving biodiversity. It will be analyzes all the
annual financial plans for this purpose

Part A

2. Current financial position of the chosen company (100-150)

1. Income statement
2. Balance sheet
3. Cash flow statement
4. Current business model
Table recommended
 2.1 Income statement …………..(include company name)
EG- DO NOT COPY

Vitra Motors, Inc

2020 Income Statement
Sales $46,298,115
Cost of goods sold 34,536,913
Other expenses 5,870,865
Depreciation 2,074,853
Earnings before interest and taxes (EBIT) $3,815,484
Interest 725,098
Taxable income $3,090,386
Taxes (25%) 772,597
Net income $2,317,789
Dividends $705,000
Additionals to retained earnings 1,612,789

2.2 Balance sheet of …………..(include company name)

Vitra Motors Inc.

Balance Sheet as of December 31, 2020
Assets Liabilities & Equity
Current Assets Current Liabilities
 Cash $524,963 Account payable $1,068,356
Accounts receivable 843,094 Notes payable 2,439,553
Inventory 1,235,161 Total $3,507,909
Total $2,603,218
Fixed assets Long-term debt $6,300,000
Net plant and equipment $20,381,945
Shareholders' equity
Common stock $460,000
Retained earnings 12,717,254
Total equity $13,177,254
Total assets $22,985,163 Total liabilities and equity $22,985,163

2.3 Cash flow statement of …………..(include company name)

Cash Flow
Rs (in Crores)

Particulars Mar'21 Mar'20 Mar'19 Mar'18 Mar'17

Profit Before Tax 5123.55 5130.01 6354.74 5668.76 4174.15

Net Cash Flow from Operating Activity 9119.89 3677.83 4923.87 7027.08 3710.00

Net Cash Used in Investing Activity -14563.81 -2575.72 -2548.71 -5110.42 -2781.83

Net Cash Used in Financing Activity 3859.82 -1015.46 -1555.22 -1033.31 -1161.49

Net Inc/Dec In Cash and Cash Equivalent -1584.20 85.93 819.63 884.06 -233.23

Cash and Cash Equivalent - Beginning of the Year 2323.51 2237.58 1417.95 533.89 767.12

Cash and Cash Equivalent - End of the Year 739.31 2323.51 2237.58 1417.95 533.89
Rs (in Crores)

NOTE- SAMPLES HAVE BEEN GIVEN ABOVE YOU CAN GET THE CORRECT INFORMATIONS
AND DATA FROM GOOGLE OR BY THE CHOOSEN COMPANY’S ANNUAL REPORTS

2.4 Current business model…………..(include company name)

The term business model refers to a company's plan for making a profit.
Under this topic please mention
 What product or service a company will sell.
 How it intends to market that product or service.
  What kind of expenses it will face.
 How it expects to turn a profit.

 EG- DO NOT COPY

 What kind of product or service a company will sell:

Netflix sells an online streaming service.
 How it intends to market that product or service:
Netflix uses a multichannel marketing strategy and
markets its service through social media, email
marketing, advertising and even simple word-of-mouth
marketing.
 What kind of expenses it will face: As a Fortune 500
company, Netflix's expenses are extensive, but perhaps
notably, its expenses will include the costs to produce or
acquire the content on its platform, as well as the
technology and staff needed to maintain the service.
 How it expects to turn a profit: Even though Netflix is
such a large enterprise, (and has a few different ways of
making money) when it comes down to it, it expects to
earn a profit from its subscription sales.

Part B

3 Project proposal (300-400)

Propose a project that requires a capital investment that could help further improve the future financial
performance of the firm.
Business proposal
  What is your business idea you are proposing?
 The possible challenges and it will improve the future financial performance of the firm
Why you choose this project? Current financial issues / problem of the company

1.

2.

How your idea/ proposal/ project is going to help to improve the financial performance
of your firm/ company

Project idea- xxxxxxxxx

Total cost of your project,

Duration- min 3 to 5 years

Project
Chain link fencing whole over the Forest Boundary and fixing a main entrance along with security
cottage

 Area value- the reserve is only 21 km from east to west, and a maximum of 7 km from
north to south
 Project cost : 13,000,000 LKR
 Project duration: 3 years

3.1 Main activities of the project (100 – 150)

You can list down the main activities (Action plan) and budget that will be carried out in your project in
the order in which they are carried out.

 EG- DO NOT COPY

ACTION PLAN
3.2 BUDGET
Prepare an estimated budget for your proposed project

 EG- DO NOT COPY

4.0 Costs and revenues

4.1 Key costs items (400 – 500)

You will need to identify the costs of the activities. (You will need to research on costs widely)

You need to explain the costs that will be incurred in the project. (A brief description of the cost and how
it will be incurred)

You may have to categorize the costs – Direct material, direct labour, overhead expenses or Variable
costs, fixed costs etc.
 Estimation of relevant cost
o Property/land cost
o Equipment cost
o Interest cost if there is any borrowing
o Staff wages
o Promoting fees
o Utility cost, etc.
You may also have to account for inflation when forecasting costs into the future.
Table recommended
  EG- DO NOT COPY
 Inflation of Brazil
According to Statista, the inflation rates of Brazil stated as follows,

Statista, H. Plecher, published on Nov 26, 2020 (https://www.statista.com/statistics/270812/inflation-

rate-in-brazil/)

2021 – 2.91%

2022 – 3.08%

2023 – 3.26%

2024 – 3.25%

2025 – 3.25%

PREPARING THE LAND

(Duration of the activity – from 2021 to end of 2022)

A land preparation is important to ensure the field is ready for planting. Further 02 Acres will be
separately allocated for parking and another 02 acres will be prepared for Butterfly garden.

Only the cost of preparing the land is calculated here, such as putting nutrients and mixing the sand and
etc.

Refer annexure 1.1 for the calculation.

1.1 PREPARING THE LAND

Cost of preparing the land is $200 per acre

 2021,
30 Acres,
30 x $200 = $6,000
With the inflation, @2.91%
$6,000 x (1+0.0291) = $6,174.60

 2022,
20 Acres,
20 x $200 = $4,000
With the inflation, @3.08%
$4,000 x (1+0.0291) x (1+0.0308) = $4,243.19

COST OF PURCHASING PLANTS

(Duration of the activity – from mid of 2021 to end of 2020)

The aim of the project is to plant 100,000 trees such as Hybrid Poplar, Weeping Willow and Weeping
Willow which are growing faster such as 08 feet within 04 months of the plantation, which will be
attractive for the park project and supporting to the reforestation as well.

Plants will be purchased for the year of 2021 and 2022 of 25,000 trees each year to plant in the selected
area.

Refer annexure 1.2 for the calculation.

1.2 COST OF PURCHASING PLANTS

Wholesale price of a plant - $0.5

 2021,
50,000 Nos x $0.5 = $25,000
With the inflation, @2.91%
$25,000 x (1+0.0291) = $25,727.50

 2022,
50,000 Nos x $0.5 = $25,000
With the inflation, @3.08%
$25,000 x (1+0.0291) x (1+0.0308) = $26,519.91

RENTAL PAID TO MACHINERIES

Duration of the activity – from 2021 to end of 2020

The machineries which are going to be used in the preparation of the land for and in planting the trees
will be obtained for a rental for 02 years of period in order to complete the project immaculate.

Refer annexure 1.3 for the calculation.

1.3 RENTAL PAID TO MACHINERIES

The rental of 01 Excavator is $80 per month (For 24 Months)

03 Excavators are engaged in the project
 2021
With the inflation, @2.91%
$80 per month x 03 Nos x 12 Months x (1+0.0291) = $2,963.81

 2022
With the inflation, @3.08%
$80 per month x 03 Nos x 12 Months x (1+0.0291) x (1+0.0308) = $3,055.10

The rental of 01 planting machine is $110 per month (For 18 Months)

02 Planting machines are engaged in the project

 2021(Project starts from mid of the year)

With the inflation, @2.91%
$110 per month x 02 Nos x 06 Months x (1+0.0291) = $1,358.41

 2022
With the inflation, @3.08%
$110 per month x 02 Nos x 12 Months x (1+0.0291) x (1+0.0308) = $2,800.50

INFLATION CALCULATION OF KEY COST ITEMS should go under Annexure,

4.2 Total cost

The revenue model (200)

What kind of service/products you are able to provide?

Estimate revenue through your business running period

You will need to identify and explain the revenue models of the project in detail. (Ways in which project
will generate cash/revenues) e.g. – sales of souvenirs, sales of tickets, regulation costs saved, monitoring
costs saved.

You will need to make use of the relevant costing principles in this area.

Then you will need to quantify the revenues. (You will need to research on revenues widely)
Table recommended

Financial Decision (300)

It would be ideal to show the NPV of the cash flows. You may use an arbitrary discount factor. However
keep in mind that if the NPV is negative then the projects become worthless.

 Whether generated revenue can cover all you cost?

 If there is net cash inflow (revenue>cost), how long does it take to get back all you initial
investment?
 Based on your analysis, what is your financial decision?
Conclusion (App.100 words)
 Bibliography
Books
Journals

Websites

Appendix 1: Other relevant data/ Statics