FLYTER DRONE SERVICES

-Unbox Your Happiness

ASSIGNMENT TAKEN :-

Financial Planning for the year 2021-22 ( Budget preparation and

Estimated Budget)

CASE UNDERSTANDING :-

Flyter Drone Services is a courier company which majorly operates

across India and delivers to most pin-codes. The company wants to add
the drone based services to conduct local deliveries as it is an extension
of company’s current services portfolios. It will give an edge to the
company among all the courier based companies. The company has all
the necessary permissions from Director General of Civil Aviation
(DGCA), as it is a mandatory rule from all the flying objects in India.
Company was successful in testing deliveries. As per feedback received
by Initial Users time saving is clear and best use case for "drone
services". Company wants drone services to add value to end users and
as it is an extension of company's current services portfolios.

BCS SOLUTION SUMMARY :-

The budget has been prepared for the financial year 2021-2022. The
budget given for the all divisions for financial year 2021-2022 was 10CR.
The expenditure for FY 2021-2022 is moderate as of other delivery
services. The overall expenditure of all department is around 4CR. So
the remaining 6CR can be utilised for expansion of business, buying
more drones and hiring team to manage drones.

SOLUTION:-

The detailed solution is given below:-

 EXPENDITURE AND BUDGET FOR FINANCIAL YEAR 2021-2022
SL PARTICULARS QUANTITY COST PER REMARKS
NO. UNIT (INR)
1. Short Range Drone 4 1,25,000 5,00,000
2. Long Range Drone 1 4,00,000 4,00,000
3. Qualified Drone 4 50,000 24,00,000
Operators
4. Management Team 5 1,00,000 60,00,000
5. Software 1 25,00,000 25,00,000
6. Software Development 2 70,000 16,80,000
Team
7. Support Staff 4 20,000 9,60,000
8. Drone Maintenance 5 24,000 1,20,000
Cost
9. Office Rent 12 30,000 3,60,000
TOTAL 1,49,20,000
10. Marketing Department Expenses 2,00,00,000
11. HR Department Training Expenses 40,00,000
TOTAL COST FOR FY 2021-2022 3,89,20,000

SALES TARGET FOR FY 2021-2022

CATEGORE COURIER WEIGHT PRICE BOOKING DAILY YEARLY
Y OF (INR) UNITS (INR) (INR)
COURIERS
A. 0.1 grams to 500 60 RS 700 42,000 1,53,30,000
grams
B. 501 grams to 1 Kg 80RS 600 48,000 1,75,20,000
C. 1.01 Kg to 5 Kg 100RS/KG 500 50,000 1,82,50,000
D. 5.01 Kg to 10 Kg 110RS/KG 450 49,500 1,80,67,500
TOTAL 6,91,67,500

CONCLUSION:-

As above mentioned the company is in profit and is less likely to go in

loss in future. The profit can be used to expand company’s business.
The company is like to have good position in market in long run. If the
company goes with the targeted sales plan then it will surely reach
break-even in its first financial year.