DIAGNOSTIC CENTRE

1 INTRODUCTION

Laboratory diagnostic service is required for providing effective diagnosis of the disease
suffered by the patient, measure the quantum of medicines to be provided, quantify the
extent of cure effected, identify the medical sensitivities of the patient to avoid
wrong/under/over medication resulting in adverse effects and to extend the research
and development capabilities of the medical process.

District hospitals providing secondary medical care are supposed to have a certain
bandwidth of lab tests as per the availability of specialties and the type of medical care
to be provided as per IPHS norms, but most hospitals in India are not equipped to this
extent.

This shortage of essential medium to high-end diagnostic service severely handicaps the
effectiveness of service delivery at the hospital and results in unwanted referrals
resulting in overloading of patients in higher delivery centre.

The objective of this project is to establish district diagnostic centers at district hospitals
on PPP mode

2 PRODUCTS AND ITS APPLICATION

This is a service sector project.

Medical diagnosis has evolved from visual and aural observation, tasting of body fluids,
primitive testing with basic chemicals and heat to advanced atomic level measurements
at present. Medical diagnosis presents a truer picture of the nature of disease, status of
penetration of the disease, degree of cure and the health of the cellular components of
the body.

Medical treatment procedures have become highly dependent on diagnostic service to

provide measured and accurate inputs. Keeping in view the requirement of evidence
based medicine in this era of consumer protection act; it is not surprising that more than
80% of the medical treatment is dependent on proper diagnostic inputs.

The branches of Laboratory diagnosis is conventionally divided into two, anatomical

pathology and clinical pathology. Anatomical pathology includes histopathology,
cystopathology, electro microscopy etc and Clinical pathology includes, microbiology, bio
chemistry, hematology, genetics, reproductive biology etc, each of these sub sections
have further specialized fields of study which offer an in depth view of the disease and
the body. While the advantages medical diagnosis is well documented and proved in
medical treatment efficacy, it is also equally costly to provide for high-end diagnostics.

Diagnostic centers originally associated as a part of hospitals have branched out as a

separate business, so as to economize the service and provide a wide spectrum of
service. A laboratory diagnostic service has to be mandatorily approved by a qualified
pathologist in India

District Hospitals are secondary level health care providers in India with basic specialties,
though IPHS has laid down norms with respect to the number of specialties, types of
treatments, and requirement for diagnostic services, most states in India are not able to
adhere to the same for want of one or more factors. It is observed in most public
hospital laboratories that the diagnostic centres are not adequately equipped with
equipment, technology and manpower.
Factors that influence the inadequate availability of diagnostic services are,

1. Non availability of modern automatic and semi automatic equipments which increase
efficiency of the output
2. High capital cost of high-end equipments required for advanced tests
3. Shortage of skilled manpower for operating the diagnostic centre
4. Insufficient supply chain and logistics of consumables and other chemicals required
for the service
5. Inadequate resources to meet the diagnostic load of the hospital
6. Lack of standard operating procedures for sample collection, management, and
testing, reporting, patient management and infection control
7. Inadequate bio medical waste management practices

These lacunae in the system adversely effects the efficiency and operation of the
hospital by,

1. Delaying the treatment procedure

2. Restricting the treatment capacity of the medical practitioners
3. Absence of proper diagnostics may lead to judgmental errors on the condition of the
patients
4. Everyone is immune or counter reactive to certain drugs and chemicals, lack of
diagnostic service may adversely affect the treatment out comes
5. Inhibits the continuity of medical treatment
6. De-motivates the medical practitioners are they are not able to extend to their fullest
capacity

3 DESIRED QUALIFICATIONS FOR PROMOTER

The promoter should be having formal qualifications in the field of Science (preferably
with relevant specialization such as Microbiology / Pharmacology, etc.) or pharmacy
(B.Pharm. or M. Pharm). Further he / she should have experience of working in a
Diagnostic laboratory

4 INDUSTRY OUTLOOK / TREND

In India, majority (70-80 per cent) of medical treatments are based on laboratory
diagnostic tests, thus making it one of the most promising sectors in the healthcare
industry. In India, the medical diagnostics industry accounts for almost 10 per cent of
the healthcare sector’s revenues.

With the growth in income and health insurance coverage, there is an increasing
demand for better healthcare services among the growing population of the country.
The sector’s growth will be driven by the country’s growing middle-class, which can
afford quality healthcare.

Healthcare diagnostics is growing at the rate of 15-20 per cent per annum. The major
driver is the growing population burden and the dual burden of chronic lifestyle diseases
along with the earlier communicable diseases and the dependency on diagnostics for all
treatments. Medical tourism too has grown and today, patients from neighboring
countries in Asia are coming to India to receive specialized medical treatment. This has
helped in further surge in demand for high end diagnostics meeting international
standards.

5 MARKET POTENTIAL AND MARKETING ISSUES, IF ANY

In India, majority (70-80 per cent) of medical treatments are based on laboratory
diagnostic tests, thus making it one of the most promising sectors in the healthcare
industry. In India, the medical diagnostics industry accounts for almost 10 per cent of
the healthcare sector’s revenues.
With the growth in income and health insurance coverage, there is an increasing
demand for better healthcare services among the growing population of the country.
The sector’s growth will be driven by the country’s growing middle-class, which can
afford quality healthcare.

Healthcare diagnostics is growing at the rate of 15-20 per cent per annum. The major
driver is the growing population burden and the dual burden of chronic lifestyle diseases
along with the earlier communicable diseases and the dependency on diagnostics for all
treatments. Medical tourism too has grown and today, patients from neighboring
countries in Asia are coming to India to receive specialized medical treatment. This has
helped in further surge in demand for high end diagnostics meeting international
standards.

In addition to this, the vast difference in costs between Western countries and India, the
country is being seen as the preferred destination for quality health solutions. This has
been reflected by increasing medical tourism.
The Indian diagnostic market is broadly divided into equipment and services. The
service sector is found to be largely unorganized, with a large presence of players
located at the regional or city level. However, a clear and structured format is being
established to have better regulations and proper definition for the market.
The use of advanced and cutting-edge technologies in understanding a disease
prognosis has further strengthened the sophistication level of participants in the sector.
The need for high-end diagnostic service is dependent on availability of medical
treatment facilities that support such service. Region / districts having sufficient
hospitals offer good scope. Existing laboratories, most of the times lack the technology,
automation, and scale required to provide high-end diagnostic service. The number of
patients who would require diagnostic service at the district hospital level is the key
parameter for market prospects.

6 RAW MATERIAL REQUIREMENTS

The project would require a range of reagents, chemicals and other products. These are
illustrated below.

CARDIOLOGY AND LIPIDS

1. Adiponectin
2. Lipoprotein (a)
3. H-FABP.
4. sLDL
5. TxBCardio™HDL3.
6. Homocysteine
7. Apolipoprotein
8. C-IIApolipoprotein
9. C-IIIApolipoprotein E

DIABETES

1. Cystatin C
2. Enzymatic Creatinine.
3. Micro albumin

CLINICAL CHEMISTRY

1. Aldolase
2. Vanadate Oxidation Bilirubin
3. 5th Generation Bile Acids
4. G-6-PDH
5. Immunoglobuline E
6. Copper
7. Zinc...
ANTIOXIDANTS
 1. Total Antioxidant Status (TAS)
2. Glutathione Peroxidase (Ransel)
3. Glutathione Reductase
4. Superoxide Dismutase (Ransod)

The project would also require packaging materials and consumables. These include
empty hard gelatin capsules, boxes, bottles, caps, etc.

Most of the above are easily available in India.

7 MANUFACTURING PROCESS

It has to be noted that there are Guidelines for Good Clinical Laboratory Practices
(GCLP) in India. Regulatory authorities at the Central level and the State level monitor
the same.

At the Central level, the Central Drugs Standard Control Organisation (CDSCO),
Ministry of Health & Family Welfare, Government of India is the apex organisation. At
the state level the Food and Drugs Control Authority (FDCA) is the regulatory
authority.

Indian Council of Medical Research (IMRC) is the nodal organisation in this regards.
Medical diagnosis is the process of determining which disease or condition explains a
person's symptoms and signs. It is most often referred to as diagnosis with the
medical context being implicit. The information required for diagnosis is typically
collected from a history and physical examination of the person seeking medical care.
Often, one or more diagnostic procedures, such as diagnostic tests, are also done
during the process. Sometimes Posthumous diagnosis is considered a kind of medical
diagnosis.
Diagnosis is often challenging, because many signs and symptoms are nonspecific. For
example, redness of the skin (erythema), by itself, is a sign of many disorders and thus
doesn't tell the healthcare professional what is wrong. Thus differential diagnosis, in
which several possible explanations are compared and contrasted, must be performed.
This involves the correlation of various pieces of information followed by the recognition
and differentiation of patterns. Occasionally the process is made easy by a sign or
symptom (or a group of several) that is pathognomonic
When some one provide blood, urine, or other body substances, these samples are sent
to the medical laboratory, where the technical and professional staff process the sample,
test it and report the results to your physician.
An indicative step wise process could be as follows

 Collection
Its all starts with the collection of a proper blood or other specimen. A doctor, nurse,
technician, or phlebotomist will draw your blood. Several tubes of blood may need to be
drawn for different types of tests.
Depending on what illness you might have, your doctor may want to obtain a urine
sample, throat swab, or other sample. Follow the instructions carefully; the right sample
leads to the right answers.
After the sample is collected, the container is labeled with your name and other
information. If you are bringing a sample to the lab, make sure it has your name and
number on it so that we do the proper tests and report them on the right patient.

 Processing
When the sample gets to the laboratory, it is logged into the hospital computer. In some
cases, the liquid portion of blood is separated from the cells to prepare it for testing. It's
then given to the laboratory staff that will perform the testing.
 Testing
• Chemistry
In the Chemistry section of the lab, blood and other body fluids are tested for
chemicals, drugs and substances that indicate disease. Examples of Chemistry
tests include cholesterol and other tests for risk of heart disease, glucose to
monitor diabetes, cyclosporine to help physicians give the correct dose of this
powerful drug, and thyroxin to monitor the thyroid gland.
 • Hematology
The Hematology section of the lab analyzes the amount and function of blood
cells and plasma. Examples of Hematology tests include the Complete Blood
Count (CBC) that tells the doctor how many cells of each type are in your blood
and the prothrombin time (PT), to monitor patients on the drug Coumadin.
• Microbiology
The Microbiology section of the lab tests patients for infections caused by
bacteria, fungi or parasites. Many types of specimens -- including blood, urine,
sputum, stool and others are tested. An example of a Microbiology test is a urine
culture for urinary tract infections.
• Virology
The Virology laboratory tests for viral infections. Depending on the virus
suspected, the laboratory might look for the virus directly, or test your blood to
see if your immune system has reacted to a virus. Examples of Virology tests
include rapid tests for respiratory viruses such as influenza, molecular tests for
noroviruses, and antibody tests for HIV.
• Immunology/Molecular Diagnostics
The Immunology/Molecular Diagnostics laboratory performs a wide variety of
complex tests. Some tests are used by your doctor to determine whether your
immune system is functioning properly. State-of-the-art analysis of DNA and RNA
is used to test for a variety of diseases. and for the risk of developing certain
diseases. Other specialized tests include the ANA, used to screen for
autoimmune disease, and Factor V Leiden genotyping for patients with blood
clots.
• Blood Bank (Transfusion Services)
The Blood Bank is a unique laboratory which not only tests patientsÕ blood types
but also provides blood products to patients who need them. It does additional
tests to assure the safety of transfused blood.

Reporting
After the tests are done, results are reviewed and entered into the hospital computer
system. For results that indicate the patient may be very ill, the laboratory calls the
doctor with the results.
Depending on how long it takes to carry out a particular test, the length of time
between the drawing of the blood and when your provider gets the results can vary
greatly, from as little as a few minutes to as much as several weeks. Most laboratory
testing is done here, but some specialized testing is sent to other labs which are expert
in particular tests.
Using the Results
Once the information is reported, your provider will interpret them based his or her
knowledge of you. The test results may help to rule out or diagnose disease, or to do
the best possible job of managing a known disease. You should ask your provider to
explain your lab results to you, so you can participate in maintaining your health.

8 MANPOWER REQUIREMENTS

Sr. No. Designation Number Approx. Annual Total Salary

1 Laboratory Analysts 3 45000
2 Supervisor 1 20000
3 Manager 1 20000
4 Office staff & marketing executive 5 50000
5 Lab assistants 5 35000
6 Unskilled workers 7 28000

9 IMPLEMENTATION SCHEDULE

Sr. No Activity Time

1 Preparation of Project report One month
2 E M Registration & approval from FDCA One month
3 Financial/Loan from Banker or Financial Institutions Two months
4 Power connection/Building construction Six months One month
5 Machinery procurement & Trial run. Two months
6 Recruitment of Staff & Labour One month
 7 Actual commercial production One month

10 COST OF PROJECT

The total cost of project is estimated as below:

Sr. No Component Particulars Rs. In lakhs

1 Land 1500 sq. mts. 7.00
2 Building 800 sq. mts. 30.00
3 Plant & Machinery including QC 45.00
4 Other Assets 2.00
5 P & P Expenses 1.00
6 Contingencies 5.00
7 WC Margin 3.00
Total 93.00

11 MEANS OF FINANCE

• Term Loan : Rs.65. 00 lacs

• Promoter own contribution : Rs.18.00 lacs

12 WORKING CAPITAL CALCULATION

Particulars Duration Total Estimated cost

( Rs. Lacs)
Raw materials/ Packing materials 1 month 6.00
Working expenses 1 month 3.00
Finished goods 15 days 2.00
Receivable 30 days 4.00
Total 15.00
13 LIST OF MACHINERY REQUIRED AND THEIR MANUFACTURERS

All machinery to be of GMP standards

Sr. no. Machine Number Approx. Cost

1 Mechanical sifter, 30” diameter 1 1,00,000
2 Powder and mass mixer 1 3,00,000
3 Multi mill 1 90,000
4 Granulator 1 60,000
5 Double cone blender 2 5,00,000
6 Tray drier with 48 trays 2 3,60,000
7 Peristaltic pumps 1 50,000
8 Rotary tablet machine 2 24,00,000
9 Semi automatic Capsule filling & Sealing Machine 1 75,000
10 Automatic capsule loader machine 1 1,30,000
11 De dusting unit 1 55,000
12 Coating machine with SS coating pan 30 “ diameter 1 2,90,000
( Optional )
13 Strip packing machine 2 4,00,000
14 Quality Assurance & Quality Control equipments - 3.00 lakhs
15 SS Storage Tanks 2,50,000
Total 45.00 Lakhs

Indicative sources:
• Remi Electrotechnik Ltd, Thane, Mumbai
• Swastik Scientific company, Gopal niwas, Mumbai
• Ambica Machineries, Vatva, Ahmedabad
• ARV Engineering, Thane

14 PROFITABILITY CALCULATIONS
 The main basis for income is the charges for various services (tests / research work,
etc.) from patients / clients. Further assumption also has to be taken regarding the
estimated number of patients per day. In view of diversity of patients and services
offered, an average and approximate revenue per patent is assumed.

Income to the Centre per patient 175 175 193 193 212

OPERATING REVENUE Project Year

0 1 2 3 4 5
Per day patients in Lab from OPD 334 339 344 349 354 360
Per day patients in Lab from IPD 120 130 140 140 150 150
Per day patient volume in Lab 454 469 484 489 504 510

TOTAL OPERATING REVENUE (in crores) 2.543 2.625 2.918 3.009 3.345

OPERATING EXPENDITURE
Manpower 0.71 0.74 0.78 0.82 0.86

Supplies & Consumables 0.89 0.92 1.02 1.05 1.17

Logistics 0.5 0.53 0.55 0.58 0.61

Insurance Cost 0.15 0.12 0.1 0.08 0.06
NABL cost (third year onwards) 0.01 0.003 0.003

TOTAL OPERATING EXPENDITURE (in

2.25 2.31 2.46 2.53 2.7
crores)

NET (SURPLUS / -DEFICIT) -1.2 0.32 0.46 0.48 0.64

Key Assumptions and The basis of profitability calculation:

As mentioned above, The Unit is a service unit offering a wide and long range of
Diagnostic services. Accordingly the capacity has been considered in terms of
patients per day. The capacity build up is taken considering the sales related from
OEM/ Retail network that is built up by the entrepreneur based on his prior experience
in the industry.
This project has to have diverse grange of services. The sales prices of these products
vary. Accordingly a range of service charge has been assumed. The cost of production,
inclusive of major cost heads such as raw materials, labour & power has been
considered based on prevailing industry standards and assumed @ 70 %.
On indicative basis, power Costs are considered at Rs 7/- per Kwh and fuel cost is
considered at Rs. 60/- per litre. The depreciation of plant is taken at 10-12 % and
Interest costs are taken at 12 % depending on type of industry. All these are wherever
applicable.
It may be kindly noted that basis / assumptions for such kind and size of the projects in
a profile can be on indicative basis only. At the same time it does provide a reasonably
accurate scenario.

15 BREAKEVEN ANALYSES

FC X 100: 15.00 X 100 = 1500

FC + Profit: 15.00 +18.00 = 33

BEP = 45.00 %

16 STATUTORY/ GOVERNMENT APPROVALS

Diagnostic centers and laboratories require approval from the Food and Drugs Control
Authorities of respective states. Further, iIt has to be noted that there are Guidelines for
Good Clinical Laboratory Practices (GCLP) in India. Regulatory authorities at the Central
level and the State level monitor the same.

MSME & GST registration, IEC Code for Export of end products and local authority
clearance may be required for Shops and Establishment, for Fire and Safety requirement
and registration for ESI, PF and Labour laws may be required if applicable. And
promoter hast to take approval from Pollution Control Board.

17 BACKWARD AND FORWARD INTEGRATION

As backward integration, Entrepreneur may think of going for the production of
diagnostic reagents and reactants.

18 TRAINING CENTERS/COURSES

Training and short term courses may be availed from the Institutions such as NIPER , B
V Patel PERD Centre and Pharmacy collages.

Disclaimer:
Only few machine manufacturers are mentioned in the profile, although many machine
manufacturers are available in the market. The addresses given for machinery
manufacturers have been taken from reliable sources, to the best of knowledge and
contacts. However, no responsibility is admitted, in case any inadvertent error or
incorrectness is noticed therein. Further the same have been given by way of
information only and do not carry any recommendation.
Use all the templets provided
below to design your own
BUSINESS PLAN
EXECUTIVE SUMMARY

This business plan is a projection for the period from ____ / ____ / 20____ till ____ / ____ / 20____

Name of the business: ____________________________________________________________________________________________________________

Contact address: _______________________________________________ Telephone: ____________________________________________

Type of business: Legal form: _____________________________________________

•• Manufacturer of the following good(s): Owners:_____________________________________________

•• Service operator to provide the following service(s):

_____________________________________________
•• Retailer running the following type of shop:
Managers: ____________________________________________
•• Wholesaler running the following wholesale business:
_____________________________________________
•• Other (please specify):
_____________________________________________
______________________________________________________________ Qualifications and experience in attached CVs

: Sources of start-up capital:

Customers: ____________________________________________________
___________________________________ ____________________
_______________________________________________________________
___________________________________ ____________________
Staff: _________________________________________________________
___________________________________ ____________________
______________________________________________________________
___________________________________ ____________________
______________________________________________________________
___________________________________ ____________________
 1. BUSINESS IDEA

Name of the business: ____________________________________________________________________________________________________________

Type of business:

Manufacturer Service operator Retailer Wholesaler Other: ___________________________________________________

The business is going to produce the following products: _____________________________________________________________________________

_______________________________________________________________________________________________________________________________

The customers will be: ___________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

The business will sell in the following ways: _________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

The business will satisfy the following needs of the customers: ________________________________________________________________________

_______________________________________________________________________________________________________________________________

My personal motivation to retain this business idea: _________________________________________________________________________________

 2.1 MARKET RESEARCH

Needs and preferences of Gaps (that competitors

Products Customers Competitors
customers have not fulfilled)
Product 1:

Product 2:

Product 3:

Product 4:
 2.2 Marketing Plan
Product

Good, service or range of products:

1.______________________ 2. ______________________ 3. ______________________ 4. ______________________

Quality

Colour

Size

Packaging

Certification
 2.3 Marketing Plan
Price

Good, service or range of products:

1.____________________ 2. ____________________ 3. ____________________ 4. ____________________

Cost

The price that customers are willing to

pay

Competitors’ prices

Price

Reasons for setting this price

Discounts will be given to the

following customers

Reason for giving discounts

Credit will be given to the following

customers

Reason for giving credit

 2.4 MARKETING PLAN
Place

Location:

_______________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

This location is chosen for the following reasons:

_______________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

The monthly cost of this location is: ____________________( → section 6.3) This cost includes: _________________________________________

Method of distribution:

The business will sell to:

Direct Retail Wholesale Others (please specify): __________________________________________

This method of distribution is chosen for the following reason:

_______________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________
 2.5 MARKETING PLAN
Promotion

Means Details Costs

Direct marketing

Advertising

Publicity

Sales promotion

→ section 6.3)
Total promotion costs (
 2.6 MARKETING PLAN
People

Position Recruiting criteria Training plan

 2.7 MARKETING PLAN
Process

Steps Description

1.

2.

3.

4.

5.

6.

7.
 2.8 MARKETING PLAN
Physical Evidence

Physical Evidence Description

Office premises and interior decoration

Internet presence and website

Packaging

Signage

Employee uniforms

Business cards

Mail boxes, etc.

 3. SALES ESTIMATION

Product Distribution Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TOTAL
1. Direct

Retail

.....

Total

2. Direct

Retail

.....

Total

3. Direct

Retail

.....

Total

4. Direct

Retail

.....

Total

Total sales volume

Total sales in the market

Market share
 4.1 ORGANIZATION STRUCTURE

Tasks and responsibilities Position Staff

1.

2.

3.

4.

5.

6.

7.
 4.2 STAFF REQUIREMENTS AND COSTS
Contributions to
Task Required skills and experience Performed by Monthly pay pension fund and health
insurance

Total number of permanent staff

→ Section 6.3)
Total staff cost per month (
 5.1 LEGAL FORM OF BUSINESS

The business will operate as a: Sole Proprietorship Partnership Cooperative Limited Company

Other: __________________________

The reason for choosing this form of business is:

_______________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

The owners will be:

Name: ___________________________________________________ Name: ___________________________________________________

Position in the business: ____________________________________ Position in the business: ____________________________________

Description of skills: Description of skills:

__________________________________________________________ __________________________________________________________

__________________________________________________________ __________________________________________________________

__________________________________________________________ __________________________________________________________

Relevant experience: Relevant experience:

__________________________________________________________ __________________________________________________________

__________________________________________________________ __________________________________________________________

__________________________________________________________ __________________________________________________________
 5.2 LEGAL RESPONSIBILITIES AND INSURANCE

The following taxes apply to the business: ___________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

The following regulations apply to the employees: _____________________________________________________________________________________

_______________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________

The business will need the following licences and permits: Cost:

__________________________________________________________________________________________________ ___________________________

__________________________________________________________________________________________________ ___________________________

The business will have the following insurance:

__________________________________________________________________________________________________ ___________________________

__________________________________________________________________________________________________ ___________________________

Other legal responsibilities of the business:

__________________________________________________________________________________________________ ___________________________

__________________________________________________________________________________________________ ___________________________
 6.1 PRODUCT COSTING FORM
(for manufacturers and service operators)

Product 1:

1. VARIABLE COST PER ITEM

1 2 3 4
Estimated Estimated cost
Input Cost of purchase
quantity per item per item

Estimated Variable Cost per item (1) ( → section 6.5)

2. FIXED COST PER ITEM

Estimated total Fixed Cost per month (2) (see section 6.3)
Estimated total Variable Cost of the business per month (3) (see section 6.5)
Fixed Cost per Variable Cost (4) = (2)/(3)
Estimated Fixed Cost per item (5) = (4) x (1)

3. TOTAL COST PER ITEM (6) = (1) + (5)

 6.1 PRODUCT COSTING FORM
(for manufacturers and service operators)

Product 2:
1. VARIABLE COST PER ITEM

1 2 3 4
Cost of Estimated Estimated cost
Input
purchase (RS) quantity per item per item (RS)

Estimated Variable Cost per item (RS) (1) ( → section 6.5)

2. FIXED COST PER ITEM

Estimated total Fixed Cost per month (RS) (2) (see section 6.3)
Estimated total Variable Cost of the whole business per month (RS) (3) (see section 6.5)
Fixed Cost per Variable Cost (4) = (2)/(3)
Estimated Fixed Cost per item (RS) (5) = (4) x (1)

3. TOTAL COST PER ITEM (RS) (6) = (1) + (5)

 6.1 PRODUCT COSTING FORM
(for manufacturers and service operators)

Product 3:

1. VARIABLE COST PER ITEM

1 2 3 4
Cost of Estimated Estimated cost
Input
purchase (RS) quantity per item per item (RS)

Estimated Variable Cost per item (RS) (1) ( → section 6.5)

2. FIXED COST PER ITEM

Estimated total Fixed Cost per month (RS) (2) (see section 6.3)
Estimated total Variable Cost of the business per month (RS) (3) (see section 6.5)
Fixed Cost per Variable Cost (4) = (2)/(3)
Estimated Fixed Cost per item (RS) (5) = (4) x (1)

3. TOTAL COST PER ITEM (RS) (6) = (1) + (5)

 6.1 PRODUCT COSTING FORM
(for manufacturers and service operators)

Product 4:

1. VARIABLE COST PER ITEM

1 2 3 4
Cost of Estimated Estimated cost
Input
purchase (RS) quantity per item per item (RS)

Estimated Variable Cost per item (RS) (1) ( → section 6.5)

2. FIXED COST PER ITEM

Estimated total Fixed Cost per month (RS) (2) (see section 6.3)
Estimated total Variable Cost of the business per month (RS) (3) (see section 6.5)
Fixed Cost per Variable Cost (4) = (2)/(3)
Estimated Fixed Cost per item (RS) (5) = (4) x (1)

3. TOTAL COST PER ITEM (RS) (6) = (1) + (5)

 6.2 PRODUCT COSTING FORM
(for retailers and wholesalers)

FIXED COST CHARGE (%)

TOTAL FIXED COST PER MONTH (2) (see section 6.3)

= x 100 = %
TOTAL VARIABLE COST PER MONTH (3) (see section 6.6)
FIXED COST CHARGE (4)

1 2 3
Fixed Cost per item (RS) Total Cost per item (RS)
Product Variable Cost per item (RS) (1)
(5) = (1) x (4) (6) = (1) + (5)
 6.3 FIXED COST FORM

Details Cost per month (RS)

Rent (see section 2.4)

Electricity and water including waste water

Licences

Insurance

Labour (see section 4.2)

Consumables including recycling and disposal

Depreciation ( see section 6.4)

Transport

Repairs

Marketing (promotion) costs (see section 2.5)

Total Fixed Cost per month

 6.4 DEPRECIATION FORM

Equipment Estimated cost of purchase (RS) Estimated life of the equipment Depreciation per year (RS)

Total

Depreciation per month

 6.5 TOTAL VARIABLE COST PER MONTH

Quantity produced per month Variable Cost per item (RS)

Products Total Variable Cost per month (RS)
(see section 3) (see section 6.1)

Product 1:

Product 2:

Product 3:

Product 4:

Total Variable Cost per month

 6.6 MONTHLY PURCHASE FORM

Estimated number of items sold Variable Cost per item Total Variable Cost
Product
per month (RS) (see section 3) (purchase price) (RS) per month (RS)

Total Variable Cost per month

 7.1 SALES PLAN
Product Details Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Product 1:
Sale volume

Sales price (RS)

Sales value (RS) (1)

Product 2:
Sale volume

Sales price (RS)

Sales value (RS) (2)

Product 3:
Sale volume

Sales price (RS)

Sales value (RS) (3)

Product 4:
Sale volume

Sales price (RS)

Sales value (RS)

(4) Total sales value (RS)
(5) = (1) + (2) + (3) +(4)
 7.2 COST PLAN
Product Details Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Total
Product 1: Production volume

Variable Cost per item (RS)

Total Variable Cost (RS) (1)

Product 2: Production volume

Variable Cost per item (RS)

Total Variable Cost (RS) (2)

Product 3: Production volume

Variable Cost per item (RS)

Total Variable Cost (RS) (3)

Product 4: Production volume

Variable Cost per item (RS)

Total Variable Cost (RS) (4)

Total Variable Cost of the business (RS)

(5) = (1) + (2) + (3) + (4)

Total Fixed Cost (RS) (6)
Total cost (RS) (7) = (5) + (6)
 7.3 PROFIT PLAN
(Unit: )

Details Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Total sales value (1)

(see section 7.1)

Total Variable Cost (2)

(see section 7.2)

Gross Profit
(3) = (1) – (2)

Total Fixed Cost (4)

Net Profit
(5) = (3) – (4)
 7.4 CASH FLOW PLAN
(Unit: )
Details Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

1. Cash at the beginning of the

month (1)

2. Cash from cash sales

CASH IN

3. Cash from credit sales

4. Other cash in

5. Total cash in (2)

6. Purchase of goods

7. Payment of wages
CASH OUT

8. Purchase of equipment

9. Loan repayment

10. Other payments

11. Total cash out (3)

12. Cash at month end

(4) = (1) + (2) - (3)
 8. REQUIRED START-UP CAPITAL
For the period from: _______________________ to: _______________________
(Unit: )

INVESTMENTS Amount

Business premises

•• Construction or purchase of a building

•• Conversion or reconstruction of business premises

Equipment

•• Machinery and Tools

•• Furniture

WORKING CAPITAL

Stock of raw materials or finished goods

Licenses and fees

Marketing expenses

Salaries

Rent

Electricity and water

Contingency for emergency

TOTAL START-UP CAPITAL

 9.1 SOURCES OF START-UP CAPITAL
( Unit: )

Amount

Required start-up capital

Sources of start-up capital

•• Owner’s equity

•• Other sources

Total (must be the same amount as the required start-up capital)

Collateral (if applying for a loan)

 9.2 LOAN REPAYMENT SCHEDULE

Loan provider: _________________________________________________________________________________________

Total amount borrowed: _______________ Loan period: _______________ Instalment period: _______________

Interest rate: _______________ Grace period: _______________ 1st year capital cost: _______________ ( see section 7.2)

Insurance policy: __________________________________________________________________________________________

Instalment period Outstanding capital Instalment Capital repayment Interest Insurance

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Total