Feasibility Study on Establishing Community Radio in Nepal

Feasibility Study on

Establishing Community Radio Begnas FM 105.4 MHz in Khudi, Kaski

Prepared By: Bishnu Prasad Neupane MBA III Trimester/2010 Batch School of Business, Pokhara University 13th March, 2011

Business Development plan of Radio Begnas FM

ACKNOWLEDGEMENT It is a matter of great pleasure for us to acknowledge all the people who helped us for the successful completion of feasibility study of Community Radio Begnas FM as per the requirement of group work of the third trimester syllabus provided by Masters in Business Administration, Pokhara University. First of all I would like to express my hearty gratitude and thanks to my instructor Dr. Deepak Bahadur Bhandari for encouraging and guiding us in each and every step during the preparing this feasibility analysis. I would like to thank him for providing the necessary suggestion. This study helps us to understand the real situation of particular business in my \society and it has been a great opportunity for us to explore the possibility within my community. I would also like to thank Mr. Amrit Banstola for providing us the information regarding the mass communication and journalism, process of program production. My heartfelt gratitude goes to Mr. Govinda Devkota (Radio Sky FM 88.4MHz), Mr. Devendra Chhetri (Radio Safalta, Pokhara), Mr. Dul Bahadur Kunwar (Community Radio Muktinath, Palpa), Mr. Ramesh Panthi (Accountant-Radio Sky), Mr. Amrit Pandeya (Radio Namaste, Butwal), Mr. Raju Pariyar (Radio Lekhnath),Mr. Saroj Adhikari (Radio Gandaki), Mr. Dhanu Ruchal (Radio Madanpokhara, Palpa), Ms. Shanti Bhattarai (Himchuli FM), Mr. Yugraj Basyal (Ruru FM), Mr. Dinesh Khadka (Butwal FM), Nepal Press Institute and Federation of Nepalese Journalists (Kaski) for providing information to us without which this study could not be complete. I am grateful to School of Business and Pokhara University Central Library family for providing opportunity to accesses the required materials. I also thank to Mr. Uday Kumar Sharma, Mr. Pankaj Karn and all my colleagues who helped us on preparing the report. And my special thanks to Mr. Rishabh Gautam, Mr. Pradeep Sapkota, Mr. Anil Gupta and Mr. Anwesh Bajracharya for their help.

Bishnu Neupane School of Business, Pokhara University

Business Development plan of Radio Begnas FM

EXECUTIVE SUMMARY Radio has been standing as a very powerful weapon in the society which can direct the time. Radio broadcasting is the cheapest and quickest means of mass communications in Nepal. Radio Begnas is a community radio going to be established in Lekhnath-12, Khudi, Kaski. The radio station will be located at the center of Khudi, nearer to Pokhara University, just 1300 meter inside the Prithivi Highway. The transmitting power of the radio will be 500 Watt and broadcasted within the radius of 20 km. Radio Begnas will be registered under government of Nepal, Ministry of communication as a community radio. This will be registered as a organization which mostly focuses on developing the community through mass communication. The project evaluation from the NPV, IRR, cash flow, discounted cash flow and many more methods are providing the more feasibility to establish the project near future. From the research report it shows there is the profitability in to our investment i.e. 2, discounted payback period is 2.23 years, IRR is 47 % etc. From these financial indicators we can say that the capital expenditure is viable to our project. The services that we are selling of radio broadcasting capacity hour are projected from 50% to 70% which gives measurable profit and are feasible on the basis of budget. The methodology of this research design that we select in to our study is on the basis of the projected data. The feasibility study of establishing an FM radio in Khudi, Kaski is best idea financially and in the sense of serving people too. Since the coverage area of Radio Begnas is remote villages of Kaski, Tanahau & Lamjung which are far from modern information and communication technology; so it will help to access education & information to all. Another important fact, in the present context, is people suffering from long power cut (load shedding) are listening radio as the best means of communication. So it’s feasible and good to establish a 500 watt FM radio in Khudi, Kaski.

Business Development plan of Radio Begnas FM

TABLE OF CONTENTS

ACKNOWLEDGEMENT EXECUTIVE SUMMARY CHAPTER 1 Introduction 1.1 Background of the study ....................................................................................................... 1 1.2 Objectives .............................................................................................................................. 6 1.3 Methodology .......................................................................................................................... 7 1.4 Limitation……………………………………...…………………………………………..12 CHAPTER 2 Organizational Description 2.1 Nature of business ............................................................................................................... 13 2.2 Organizational structure……………………………..…………………………………….16 2.3 Industry overview…………………………………………………………………………18 CHAPTER 3 Production Plan 3.1 Radio program production process……………………………………………………….19 3.2 Purposed schedule…………………………………………………………………………26 3.3 Input requirement………………………………………………………………………….26 3.4 Estimate cost sheet………………………………………………………………………...27

Business Development plan of Radio Begnas FM

CHAPTER 4 Financial Projection 4.1 Production and sales estimate ............................................................................................ .29 4.2 Revenue Budget …………………………………………………………………………..29 4.3 Projected income statement ………………………………………………………………30 4.4 Projected balance sheet …………………………………………………………………...31 4.5 Projected cash flow statement ……………………………………………………………31 CHAPTER 5 Fixed Capital Requirement 5.1 Fixed capital requirement…………………………………………………………………33 5.2 Working capital Requirement……………………………………………………………..34 CHAPTER 6 Financial Plan 6.1 Sources of financing………………………………………………………………………35 6.2 Capital structure…………………………………………………………………………...35 6.3 Loan drawing and payment schedule……………………………………………………...35 CHAPTER 7 Financial Analysis 7.1 Return on Equity…………………………………………………………………………..37 7.2 Return on assets…………………………………………………………………………...37 7.3 Time interest earned ratio…………………………………………………………………37 7.4 Break even analysis………………………………………………………………………..38 Business Development plan of Radio Begnas FM

7.5 Profit margin………………………………………………………………………………39 7.6 Net Present Value…………………………………………………………………………39 7.7 Internal Rate of Return…………………………………………………………………….40 7.8 Payback Period and discounted payback period…………………………………………..40 7.9 Profitability index…………………………………………………………………………41 CHAPTER 8 Conclusion and Recommendation 8.1 Conclusion………………………………………………………………………………....43 8.2 Recommendation ………………………………………………………………………....43 References Annexes

Business Development plan of Radio Begnas FM

CHAPTER 1 INTRODUCTION 1.1 Background of the Study 1.1.1 Radio Radio broadcasting is an audio (sound) broadcasting service, traditionally broadcast through the air as radio waves (a form of electromagnetic radiation) from a transmitter to an antenna and thus to a receiving device. Radio is the transmission of signals by modulation of electromagnetic waves with frequencies below those of visible light. 1.1.2 History Early history: The etymology (Origin of the word) of "radio" or "radiotelegraphy" reveals that it was called "wireless telegraphy", which was shortened to "wireless" in Britain. The prefix radioin the sense of wireless transmission, was first recorded in the word radio conductor, a description provided by the French physicist Édouard Branly in 1897. The meaning and usage of the word "radio" has developed in parallel with developments within the field of communications and can be seen to have three distinct phases: electromagnetic waves and experimentation; wireless communication and technical development; and radio broadcasting and commercialization. A demonstration of wireless telegraphy took place in the lecture theater of the Oxford University Museum of Natural History on August 14, 1894, carried out by Professor Oliver Lodge and Alexander Moorhead. During the demonstration a radio signal was sent from the neighboring Clarendon laboratory building, and received by apparatus in the lecture theater. 20th Century: On Christmas Eve, 1906, Reginald Fessenden used a synchronous rotary-spark transmitter for the first radio program broadcast, from Ocean Bluff-Brant Rock, Massachusetts. Ships at sea heard a broadcast that included Fessenden playing O Holy Night on the violin and reading a passage from the Bible. This was, for all intents and purposes, the first transmission of what is now known as amplitude modulation or AM radio. Charles Herrold started broadcasting in California in 1909. The first radio news program was broadcast August 31, 1920 by station Business Development plan of Radio Begnas FM

8MK in Detroit, Michigan, which survives today as all-news format station WWJ under ownership of the CBS network. The first college radio station began broadcasting on October 14, 1920, from Union College, Schenectady, New York under the personal call letters of Wendell King, an African-American student at the school. KDKA AM of Pittsburgh, Pennsylvania (owned by Westinghouse) started broadcasting as the first licensed "commercial" radio station on November 2, 1920.

1.1.3 Radio in Developing country: Radio broadcasting is the cheapest and quickest means of mass communications in Nepal. In a mountainous country like Nepal, radio broadcasting has proved to be a very effective medium for disseminating information, educating people and entertaining the masses. In the developing countries, the greater part of the people live in the land, are frequently isolated by illiteracy and lack of transport. Effective communication with rural people and their active participation in the life of their country are essential for developing society. Radio broadcasting when skillfully used, has proved to be the most effective medium of communication with the farflung population. This of course is not to say that radio is the simple answer to the problems associated with the effective exercise of the combination. The use of radio encounters problems. There is the technical problem of transmitter coverage and the quality of reception signals. There are planning problems of appropriate human and adequate financial resources, and production problems of quality and suitability of content materials. There is the difficulty of choosing the appropriate program strategy to adopt. There are the organizational problems of co-ordination between, and the do-it-alone approach followed by broadcasters, educators, and institutional agencies responsible for public enlightenment. Perhaps one self-made limiting factor to the success of radio in communication generally is the usual ‘shot in the dark’ approach to programming which leaves the target audience ‘forgotten’ while programs are being planned; ‘remembered’ just before the programs go on the air; and Business Development plan of Radio Begnas FM

‘forgotten’ again as soon as the programs have been broadcast. This particular problem raises the issues of feedback, interaction and proximity of stations and producers to the consuming audiences - issues which are basic to effective exercise of the communication.

1.1.4 Radio Broadcasting In Nepal: In 1945, Maharaja Padma Shamsher initiated broadcasting with religious hymns and prayers. Loudspeakers were introduced to facilitate Kathmandu-dwellers to listen to the broadcast and it was the beginning of broadcasting in Nepal however, the general public was not allowed to own a radio set. In 1946, the ban on owning a radio set was lifted. First broadcasting in Nepali language was done directly from Biratnagar in eastern Nepal. It was March 1950 when Nepalese turned into their radios to listen to the voice from a station set up in their homeland. The official radio broadcasting started on the 1 April 1951. Initially, a small wireless set of 250 watts was used as transmitter. During 1950s and 1960s Radio Nepal’s capacity was increased significantly. Till August 1984, Radio Nepal used to broadcast through only one channel and the duration of broadcasting was 13 hours 25 minutes per week. Listeners of five development regions are now served in MW (100 kW transmitter) through a national and four regional stations. Radio Nepal is on air for about 95 hours per week from the central station and about 7 to 10 hours each from five regional broadcasting services. About 15% of Radio Nepal’s total air time (14 hours per week) is devoted to education and informative programmes, whereas little more than 20% (19.25 hours per week) is being occupied by development oriented programmes. The highest percentage (more than 54%) time is given to entertainment and eight percent to advertisement. Radio Nepal, operating within the ministry of communication quite often presents government policies, programmes and information that are not too different from government propaganda. However it is necessary to a Nepali to listen to the national radio for news about the matters that

Business Development plan of Radio Begnas FM

concerns him or her. Although, All India Radio, Radio Peking, Radio Bangladesh, the external services of BBC, OVA, NHK, Radio Moscow, Radio Sri Lanka and many others are received almost everywhere in Nepal, Radio Nepal is very clearly the most frequently listened station. The other are rather distant choices as they do not provide that much information which relates Nepal. Radio is taken as a serious communication device by those who possess receivers as well as by those who do not. Radio listening appears to be a deliberate, serious, regularised pattern in the daily activities of the owner and to some extend, among non-owners as well. Radio listening is not a haphazard affair in Nepal; for some listeners it seems to fulfil the desire for an aware of things beyond the village. As such, it may be that radio potential as an educational and motivational tool for national integration and development has only been partially developed or utilised. Despite the tremendous advantages offered by the medium, to possess a radio for a rural Nepali citizen is rather exceptional due to the fact that more than 75% of the population live under the poverty line. Mandatory licensing is supposed to be able to provide the actual number of radio receivers that are in Nepal but it is extremely difficult to know how many of them really exist since there are no official figures available. There are several findings about the numbers of exiting radio sets in Nepal. UNDP’s Human Development Report in 1995 estimated only three radio sets per one hundred people in Nepal. However, Development Communication and Research Consultancy Group in 1990 estimated that 63.6% of Nepalese households have radio sets, a ratio of about 112 sets per 1000 people. After the revolution in 1950-51 various kinds of media were introduced in Nepal and since then they have grown rapidly in quantity. 1.1.5 Community Radio Begnas FM 105.4 MHz

Business Development plan of Radio Begnas FM

There is one sub metropolitan city and a municipality in Kaski district. An AM radio (Radio Nepal Regional broadcasting) station and 13 FM radio stations are currently on air in Pokhara sub metropolitan city. An FM Radio station in Lekhnath municipality is in under construction. Radio Begnas is a community radio going to be established in Lekhnath-12, Khudi, Kaski. The radio station will be located at the center of Khudi, nearer to Pokhara University, just 1300 meter inside the Prithivi Highway. The transmitting power of the radio will be 500 Watt and broadcasted within the radius of 20 km. It is expected to cover most of the parts of Kaski, Tanahau, Lamjung and Syangja districts. The height of the tower will be 30 meters from the ground-level and there will be six dipoles. The main focus of Radio Begnas is as follows; •

Massive dissemination of Information at the root level.

•

Substantial improvement in: –Rural Education –Health Care –Agriculture

•

Development of mainly youth based human resources in terms of: –Audio program producers –Journalists –Radio technicians

•

The creation of Community based awareness groups on socio-economic issues like: – Environment pollution – Adult literacy – Ethnic discrimination etc.

•

Create mass level awareness.

•

Focus on educating people through various programs.

•

Trained work force.

•

Viable two way communication among the listeners and the broadcasters.

•

Entertain people through music, radio drama, etc.

Business Development plan of Radio Begnas FM

•

Attempt to provide prompt and accurate coverage of all national and international news including political, economic and social highlights in a balanced and objective manner.

Radio will be the most suitable means of disseminating information and providing entertainment to masses in Kaski and neighbor districts. It will attempt to safeguard the basic principle of public interest and the public's right to be informed as the public broadcaster of the community.

1.2 Objectives The general objective of this study is to understand the patterns and experience the real life situation. However the specific objectives of this feasibility analysis include: 1. To produce a project report as a partial fulfillment of requirement for completion of MBA. 2. To conduct a financial feasibility of establishing Radio Begnas FM in Lekhnath, Kaski. 3. To gain practical knowledge about the subject matter and learn how it is conducted for a real organization.

Business Development plan of Radio Begnas FM

1.3 Methodology of the study Research methodology is the systematic and organized effort to investigate a specific problem that needs a solution. This process of investigation involves a series of well thought out activities of gathering, recording, analyzing and interpreting the data with the purpose of finding answer to problem. Thus, the entire process by which we attempt to solve problem is called research, while 'methodology' is the research method used to test hypothesis. A sound and systematic methodology is required to carry out any study, if it is to be worthwhile.

Methods for field visits We the group members visited the following FM radios in different areas of western Nepal for collecting necessary information and observe the contemporary financial situations of the local F M Stations. This type of field visit and observations are used as primary way of data collection. Field visit helped us to find out accuracy, validity and suitability. The justification on the present study cannot be obtained without help of proper research methodology. For the purpose of achieving the objectives of study, we applied appropriate methodology in particular situation depending upon the nature of task. We have visited both the commercial and community types of FM radio stations in Kaski district. Following approaches are used on visiting FM radios;
Interaction with station managers, technician chiefs and program chiefs of Radio stations,
Interaction with engineers,
Field observations,
Informal interviews,
Institutional survey, etc.

Business Development plan of Radio Begnas FM

Research design The research design is the plan structure and strategy for investigation of the facts in order to arrive at conclusion. The plan is the overall scheme of program of the research. It includes program of the research. This research design is a plan to obtain the answer of the question through analysis of data. To achieve the goal of the study, the study will use the available data from the primary and secondary sources. Analytical as well as descriptive research design will be adopted to clarify the contemporary situation of the FM radio through presentation and analysis of various data using various financial tools. The design may be a specific presentation of the various steps in the problems, conceptual clarity, methodology, survey of literature and documentation, bibliography, data collection, testing of the hypothesis, interpretation, presentation and tracing conclusion. Generally, a common feasibility design possesses the eight basic elements viz. 1. Introduction 2. Methodology 3. Organizational Description 4. Service Plan 5. Financial Projection 6. Financial Requirement 7. Financial plan 8. Financial Analysis 9. Conclusion and recommendation.

Business Development plan of Radio Begnas FM

I. Preliminary research The team of feasibility study collected information related to FM radio station through visiting FM stations in Pokhara, internet and through interview with Audio professionals and technicians. Researchers team understood various and essential aspect of community locl radio which helped to do the research smoothly. Finally, researcher developed a research matrix to plan the research. It includes developing of research questions, information required, and sources of information.

ii. Secondary research and observation study Secondary research was necessary for project to become familiar with the concept and different aspects of establishing FM radio based on community and service oriented. There the researcher team has also learned various aspects that needed to be taken into consideration for completion of the research. Observation study constituted the initial study, which involved the observation of process and the problems associated with the establishment of teaching hospital

iii. Exploratory research In exploratory research, the researcher conducted in-depth interviews with the media persons related to electronic and print medias of Pokhara, Syangja, Palpa, Gulmi and Rupendehi. We also The information obtained from these exploratory researches provided data for the quantitative research work. We developed questionnaires with the information obtained from these researches and secondary data.

iv. Questionnaire development For the research, researcher developed a single set of an information-generating questionnaire, which would fulfill purposes/objectives of our study. The questionnaire is expected to provide

Business Development plan of Radio Begnas FM

adequate information for better analysis and development of different strategies and overcome weaknesses.

v. Method of data analysis The data collected from the sources are classified, tabulated and analyzed according to the needs of the research. Necessary tables, graphs and charts were constructed to fit the data obtained from the sources.

vi. Data analysis tools Different analysis tools were used for data analysis, like SPSS 11.5, MS Excel. They are highlighted in the following table:

Software

Statistical Tools

MS Excel

Graphs Charts

vii. Data analysis and findings After collecting all the information from different sources, we analyzed the data. After analysis, we developed various recommendations, which are the outcome of the formally conducted research and in-dept study and interviews. Thus, this was how the researcher approached to complete the overall study.

Business Development plan of Radio Begnas FM

viii. Sources of data/information The researcher collected all the information needed for research study from different authentic sources and have categorized them as primary and secondary data. They are briefly introduced below:

i. Primary data Primary data are those collected by the researcher on the concerned topic, which are original in nature. While studying about establishing a community radio, we came across primary data from different sources like: direct in-depth interviews with station managers of other radio stations in order to collect various information regarding financial and other operating processes of radio program production and media management.

ii. Secondary data Secondary data are those collected by the researcher on the concerned topic, which are not original in nature or are originally collected for some other purposes. The main sources of secondary data were: statistical publication of different media houses and organizations through websites, different journals and business magazines etc.

Business Development plan of Radio Begnas FM

1.5 Limitation of the Study Some of the limitations of study are listed below: 1.

This study is mainly concerned to only establishing community radio, not on the quality

of program production

2.

Information we gathered is relied mostly on the interaction with had with media persons

and managers, we could not access to the equipment suppliers. Managers hesitated to give some information related to the salary of RJs. 3.

The price is based on secondary data from the respective websites on net, article,

newspapers.

4.

Lack of sufficient resources.

5.

In this study only selected tools and technique are used.

6.

This study is conducted only for suggestion not for directing.

Business Development plan of Radio Begnas FM

CHAPTER 2 ORGANIZATIONAL DESCRIPTIONS

2.1 Nature of Business: Introduction and Importance In the context of developing countries, where literacy rate and per capita income is extremely low, print media and television for the most is a remote reality, radio broadcasting is the leading and most vital media. Radio, television and the newspaper are the best known media of mass communication in developing countries. None of these, for one reason or the other, is successfully accessible to the rural population, In the case of the newspaper, for example, it could not be used for direct communication with rural communities because such communities usually are illiterate. Television too, has not been much of a help. Stations are built in cities far removed from the rural population. The cost of receiving sets has been prohibitive because of it’s high prices. No developing country as of now can afford to establish sufficient television stations to ensure an equitable access for all it’s citizens. The Internet is in its infancy in developing countries. In most of the developing countries, Internet development has only begun to take off in 1995. Only the intellectual elites have an access to it and they remain a very tiny part of the population. Development of electronic media in developing countries is uneven, both within and among countries. Often, this media is introduced into a country by some commercial companies and the growth has been fastest where there is a commercial push. Often, this means that only the limited numbers of elite from the major cities have an access to it. Developing countries have many barriers to growth of electronic media like with many other media. Besides the major barriers of high rate of illiteracy coupled with the inaccessibility due to poverty, developing countries face many other barriers. First, there is a lack of infrastructure. We

Business Development plan of Radio Begnas FM

know that even as we celebrate the 100th anniversary of the emergence of the telephones as a tool in human communication, more than half of the global population does not know what is like to use a telephone. The technology of the typewriter has still to reach great majority of humanity. Secondly, the high costs of access to information. Whether information comes to us as databases, magazines, newspapers or pay TV, income differentials determine its availability. Telecommunication charges are also extremely high and for the majority of the population purchasing the equipments for electronic media is a remote dream. There is also low computer literacy and low personal computer (PC) penetration even among the elites. These are the some of the present basic odds of the developing countries which are likely to hamper the development of electronic media however, these odds are likely to be lowered over time as developing countries develop. Considering all the odds with other media, radio appears to be the best solution of mass combination for the rural communities of the developing countries. Radio is cheap and it is widely owned. Apart from the well-known characteristics of radio, such as it’s ability to beat distances and literacy barriers, as well as it’s immediacy and individualistic touch, it is the only medium of mass communication with which the rural communities are familiar. In the developing countries, the greater part of the people live in the land, are frequently isolated by illiteracy and lack of transport. Effective communication with rural people and their active participation in the life of their country are essential for developing society. Radio broadcasting when skilfully used, has proved to be the most effective medium of communication with the farflung population. Communication between people for vast majority of the population is a matter of oral word. Print media is available but only a limited number of people are sufficiently affluent or literate enough to use them. Even those who can read and comprehend the reading materials have no access to them due to the high costs and there is big problem of distribution. Printed materials are a luxury to many people. All newspapers are printed and distributed in towns and they play a very little

Business Development plan of Radio Begnas FM

part in the daily affairs of the population at large. So, radio is the best alternative of mass communication in Nepal. Radio is taken as a serious communication device by those who possess receivers as well as by those who do not. Radio listening appears to be a deliberate, serious, regularized pattern in the daily activities of the owner and to some extent, among non-owners as well. Radio listening is not a haphazard affair in Nepal; for some listeners it seems to fulfill the desire for an aware of things beyond the village. As such, it may be that radio potential as an educational and motivational tool for national integration and development has only been partially developed or utilized.

Business Development plan of Radio Begnas FM

2.2 Organizational Structure: The organizational structure of Radio Begnas will be as below;

Board of Directors

Chairman

Station Manager

Program/ News Chief

News Readers

News writers/ collector

Reporters

Production Department

Technician Chief

Marketing Manager

Technicians/ Djs

Marketting Representatives

Accountant

Radio Jockeys/ Hosts

The production department of this radio station consists of the radio production staff, operations staff and on air personalities like hosts, co co-host, host, anchors, disc jockeys or radio jockeys whatever you call them. The production department makes certain that all program contents and commercials are timely produced and lined up for timely broadcast. The Operation department supervises the smooth Business Development plan of Radio Begnas FM

operations of the radio station. The on-air personalities deliver the contents to the listeners and are the face of the radio station. The production department is also assisted by the traffic managers who plan the broadcast of these commercials on air. Marketing department is responsible for generating direct revenue for the radio station by selling air time to advertisers. The department consists of several persons who perform different functions ranging from the head who supervises the functioning of the entire department to make certain the revenue target are met. The department has a large number of sales men who approach advertisers and prospective advertisers to sell the air time and to negotiate the terms and the payment details with these advertisers. The accounts/finance department of a radio station set up is in- charge of handling the all revenues and expenses in a controlled environment. The primary function this is to ensure that dues from advertisers are collected in a timely manner and similarly all payments like utilities, salary and others are done on time. It also handles all legal or financial matters relating to mobilizing funds from the market. The finance department additionally looks after departments like auditing and taxation. The station Manager of a radio station is responsible for smooth management of processes of the radio station. Functions include managing logistics, managing proper housekeeping, handling security measures at the radio station, handling office boys, arranging for traveling, boarding and lodging for radio station officials and guests.

Business Development plan of Radio Begnas FM

2.3 Industry Overview: Media industry is very vivid and one of the most versatile industry. Mass media, as it is called theoretically, is one of the most influential industries as it is directly connected with the mass audience. The main work of Media industry is to provide information and generate public opinion. The Media industry first started with the mass distribution of newspapers and magazines. Today, the definition of media has changed and media has many sub forms like Broadcasting with the help of TV and radio, Entertainment with use of audio visuals -films and videos, internet that includes blogs, forums, music, news, then Publishing of Books, papers, magazines, and it also includes postal mail, telephony and other interactive Media. The media has various purposes like providing entertainment, education, Advocacy among others. Thus the scope of a Career in media industry is vast.

Business Development plan of Radio Begnas FM

CHAPTER 3 PRODUCTION PLAN (SERVICE PLAN) 3.1 Radio Program Production Process 3.1.1 The People Involved in Radio Program Production The size of the radio station and / or the budget often dictates the number of people involved and their job functions, but regardless of whether one person fulfills all the roles, or there is a greater degree of specialization with different people assigned to each, the main skills and the roles needed to produce a commercial, and there are essentially only four: 1. The Scriptwriter: having the writer present at the session often helps clear up any misunderstanding with the written word. 2. The Sound Engineer: a good experienced technician with a good pair of ears can make everything work quickly and smoother. 3. The Producer: the person in overall charge of achieving the end result. 4. The Voice Over(s): Good casting is essential and knowing the capabilities of each voice helps. All the above roles can be, and often are, completed by one person, and sometimes for larger campaigns with larger budgets, present in the studio can also be:

•

The Client(s): whose money is being payed for the session.

•

The Media Sales Representative(s): responsible for booking the commercial airtime.

•

The Advertising Agency: either in a creative capacity as the writer and producer or as an advisor to the client.

So present in the studio to record a radio commercial or a number of commercials for any advertising campaign can range from one person to several.

Business Development plan of Radio Begnas FM

Radio Program Production Process:

Issues/ Problems/Events

Environment

Feedback Program Concept Writing Script Interview with Experts

Program Script

Discussion Points/Agenda of In- Depth Study

Edited Interview

Radio Program

Program Production

Finalized Program

Editing Broadcast Program

Business Development plan of Radio Begnas FM

3.1.2 Before the Recording Before any recording begins there are a few steps well worth doing if not essential that will not only save time later as the recording progresses but will ultimately lead to a better end product. Some of this is preparation and some skills and technique that need practice and experience. •

Read the script again (and this applies as much to the scriptwriter)

•

If not the writer, discuss the script with the scriptwriter so that all understand it.

•

Look out, or pre-record any sound effects.

•

Listen to the options, choose and set up music tracks.

•

Cast the voice artists carefully, and give them as much information about what’s required and as much encouragement as they need.

•

Try and create a good atmosphere in the studio, relaxed and open for ideas.

•

Be prepared to enjoy it!

Recording any audio is as much about the people involved in the process as it is about the technicalities, technology and equipment.

3.1.3 The Recording Process The recording studio is the sound engineer’s domain and a good sound engineer will have studio skills including both sound recording and editing skills and be familiar with different types of production software and their capabilities. They will add considerably to the whole production and should: •

Contribute ideas including suggesting the sound effects and music available.

•

Suggest the best way to record the audio.

•

Consider other places to record the audio that might help the final production.

•

Ensure all the equipment is working efficiently.

•

Pick the right microphones for the number of voices involved.

•

Set up the studio and provide all the facilities.

An experienced sound engineer or technician make a recording session run smoothly and contribute greatly to the production. Business Development plan of Radio Begnas FM

3.1.4 Creativity in the Studio Most production companies and studio personnel will acknowledge that without a good script, making a good commercial is difficult if not impossible. Conversely a good script can be wasted by poor production. A good script or series of scripts and a recording session when all the above is in place can produce some effective and creative audio.

3.1.5 Radio Script : How to Write a Radio Script? Building anything without the right tools and equipment is difficult. Happily there are only a few essential building blocks that make writing a radio script easier.

A major part of most creative work at some stage involves writing a script, or at least putting some ideas down on paper or its technological equivalent. This is especially true where more than one person is involved, with the exception obviously of various forms of improvisation. It’s certainly true in radio and applicable to the production of any audio be it radio commercials, station and programme promotions, news bulletins, indents and inserts, or any programming features. 3.1.6 The Rules of the Production Process There are no ‘golden rules’ that must be adhered to in audio production bar the obvious technical considerations, and it’s certainly true to say for any area of creative output that what works for one person, may only serve to hinder another. Producing something out of almost literally nothing is the alchemy of ideas that has both puzzled and delighted the artistic community and its sponsors for thousands of years. Creativity exists in many forms, and a mixture of experience and inspiration can be as effective as naivety and enthusiasm is productive

Business Development plan of Radio Begnas FM

3.1.7 Making a Start. That said the hardest part of a great many artistic adventures is the beginning; the first brush stroke or the first word, after that the process often takes on a momentum of its own. Considering a lot of day to day radio production is the solution to a set task or problem: •

Write a promotion to promote x, y, or z.

•

Make a program about a, b, or c.

•

Construct a feature to investigate 1,2 and 3

•

Produce a radio commercial for xxxxx.

In each of these cases there are parameters already laid down as and this is often a great place to start. Write these down either as a brief: •

Who are we talking to?

•

What do want them to do?

•

Why should they do it?

Or outline the guidelines and objectives as written goals, and it’s important to write them down. •

How long is the feature, promotion, program to be?

•

What are the main objectives?

•

Who’s involved or could be involved?

•

Who’s the main audience?

•

What’s the main story, or the point of the piece?

Business Development plan of Radio Begnas FM

3.1.8 Tools of the Trade Of course this is in effect all ‘Brainstorming,’ and it can be done as effectively individually as it can be collectively. Many radio scriptwriters have found through writing, rejecting ideas that don’t work, and embracing ideas that do, and a certain amount of trial and error, the best way for them not only to begin writing but to get to the script. This will often involve thinking of the tools and materials available to them, and considering ideas of the best way to use them. The tools of the radio trade are: •

Solo Voice: Radio is often at its best as a one-to-one story telling medium. What’s the story being told, and who is it being told to??

•

Sound effects: A sound effect chosen at random can start the process.

•

Music Tracks: Music can be a great catalyst for ideas, just check there’s a relevant broadcast license.

•

Vox Pops: Ideas come for the most unusual places, ask people in the street their thoughts.

•

Interviews: When writing about specifics more knowledge help so interview someone who knows.

•

Chance: be aware of the possibilities and trying something just to see what happens.

Louis Pasteur once famously said “Chance favors the prepared mind,” and starting to write a radio script can happen more easily when the mind instead of finding difficulty in writing, is prepared to give creativity a chance. Laying out the tools of trade, or just starting to use some of them often hastens the process.

3.1.9 Developing the Idea

Business Development plan of Radio Begnas FM

Many people struggling to start a radio script or any creative project, often have a high level of self censorship and reject numerous potentially workable ideas. On the other hand, many working creative people whose job it is to continually come up with and develop new ideas, often propound the underlying idea, that “There are no such things as bad ideas and good ideas, there are just ideas, and some may be worth developing or thinking about more than others." Mass media campaigns to influence public attitudes and behaviors in the area of mental health must consider cost-effectiveness, which is based on actual costs, the number of people reached (exposures), and the impact of the program on the individual. Cost per exposure is a critical factor. The authors review their experience in developing media programs in several broadcast formats and in print. Their experience suggests that an effective television production has a very high per-exposure cost and that radio is a more cost-effective way to present health messages. Radio programs also have the advantage of reaching people in their homes or cars or at work. Brief segments may be particularly cost-effective because they can be can be inserted between programs during prime-time hours. Print media— newspapers, magazines, and newsletters—can be cost-effective if magazine or newspaper space is free, but newsletters can be costly due to fixed postage costs. One advantage of print is that it can be reread, clipped out, copied, and passed on. Writing the script is only the first stage in the process of making a radio commercial. Good production can make an award winning ad, and bad production ruin it. Putting together a radio commercial once the script is written requires skill, a good pair of ears, and some dedication. Understanding all the constituent parts and how they might interact with each other becomes easier with a basic understanding of each.

3.2 Proposed Schedule of broadcasting The schedule of the radio programs takes 18 hour per day for 365 days a year. Schedule is maintained such way that 3 hours could be sold and 1 hour for sponsorship per day. Business Development plan of Radio Begnas FM

3.3 Input requirements and cost sheet This section provides equipment guidelines for a complete local-production capable public radio station with interconnection to the Public Radio Satellite Systems. Pricing is given for the following power levels of transmission equipment: •

Pricing for Class A transmission system

•

Pricing for Class A transmission system: This system is based on the FCC docket 80-90 for a maximum ERP of 3 KW, HAAT being 328' or 100 meters maximum. The priced system includes a 3.5 KW transmitter, 350' tower and 350' of 1-5/8" Heliax transmission line, and a 2-bay circularly polarized antenna with a 5 KW maximum input power.

•

Pricing is given for the following:

S.N

Particulars

1

Radio Transmission Systems

2

Radio Test Equipment

3

On-Air Control Room (Radio)

4

Production Control Room and

5

Associated Studio (Radio)

6

News Control Room (Radio)

A. Radio Transmission System The total cost for Radio Transmission System is found to be Rs.470,569. Standby power generator and UPS - Cost dependent upon transmitter power and air conditioning need – Rs.10,000 to Rs.45,000. B. Radio Test Equipment Business Development plan of Radio Begnas FM

The cost for Radio Transmission System STUDIO is Rs. 71,850 and that of XMTR is Rs. 6,350 C. On-Air Control Room (Radio) The cost for On-Air Control Room is found to be Rs. 163,945. D. Production Control Room and Associated Studio (Radio) The cost for Production Control Room and Associated Radio is calculated to be Rs.104,430. E. News Control Room (Radio) Similarly, the cost for News Control Room is calculated to be Rs. 75,270 and Associated Studio (Radio) is Rs. 65000. Office Equipment & Furniture

100,000.00

furniture like chair, table etc

1

100,000

Installation

100,000.00

75,000.00

installation of office equipment

1

75000

75,000.00 30,000.00

Pre operating Expenses registration, legal and feasibility study

1

30,000

30,000.00

With the program software of Rs. 250,000 the total fixed assets investment is Rs. 1457,414. Manpower requirement Staffs Particulars

No’s

station manager

1

accountant

1

technical manager

1 Business Development plan of Radio Begnas FM

technical assistant

5

receptionist

2

anchor

8

peon and guard

3

Sub Total

21

.

Business Development plan of Radio Begnas FM

Chapter 4 FINANCIAL PROJECTION

4.1 Production and sales estimate We are in the assumptions that the normal capacity of the radio is 18 hours per day and it operates 365 days in a year. The figure outlines the total sales of Rs.7,865,000 with advertising, program time sold and from sponsorship program. Details of service Particulars

assumption

unit

Advertising

25%

of total time

program time sold Sponsorship

3 1

hr per day hr per day

Annual Capacity 1,643 1,095 365

Total

2,738 remaining time allocated for musical songs, news , live telecast and official media 4.2 Revenue budget Projected sales capacity

50%

55%

Particular

1

2

Total sales revenue

60% year 3

65%

70%

4

5

3,932,500.00 4,325,750.00 4,719,000.00 5,112,250.00 5,505,500.00

Business Development plan of Radio Begnas FM

sales 100% Miscellineous

95%

Sponsorship 90%

Program Time Sold

85%

Advertising

80% 75% 1

2

3 years

4

5

sales projection

6,000,000 sales amount

5,000,000 4,000,000

sales

3,000,000 2,000,000 1,000,000 1

2

3 years

4

5

4.3 Projected income statement S.N.

Particular

schedule

EAT(G-H)

year 1 269,794

year 2 637,419

year 3 989,478

year 4 1,330,376

year 5 1,663,518

The given income statement provides the earnings after tax for the operating five years. The income is increasing in trend. Business Development plan of Radio Begnas FM

4.4 projected balance sheet The balance sheet shows the total assets equal total liabilities and owner’s equity. Year Of Operation Total Assets (A+B) Total Capital & Liabilities(A+B+C+D+E)

0

1

2

3

4

5

1,800,000

2,099,607

2,618,061

3,468,061

4,634,910

6,106,705

1,800,000

2,099,607

2,618,061

3,468,061

4,634,910

6,106,705

4.6 projected cash flow A cash flow statement shows the total cash inflow and cash outflow. A business’s net cash flow generally differs from its accounting profit because some of the revenues and expenses listed on the income statement were not received or paid in cash during the year. The relationship between net cash flow and net income can be expressed as follows: Net cash flow = Net income – Non-cash Revenue + Non-cash charges The primary examples of non-cash charges are depreciation and amortization which reduces net income but are paid out in cash, so we add them back to net income when calculating net cash flow. The projected cash flow statement for five years is given as below: particular

1

2

years 3

4

5

Opening Cash Balance

342,586.00

677,338.35

1,436,661.40

2,460,620.34

3,751,246.04

Total cash received in year

830,500.00

1,213,850.00 1,595,715.00

1,975,872.25

2,354,065.59

total cash usage in year net cash flow during the year

495,747.65

454,526.95

571,756.06

685,246.55

796,130.19

334,752.35

759,323.05

1,023,958.94

1,290,625.70

1,557,935.40

Closing cash balance

677,338.35

1,436,661.40 2,460,620.34

3,751,246.04

5,309,181.44

Business Development plan of Radio Begnas FM

Cash Flow

Net cash flow Cash balance at end

6,000,000

amount

5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 1

3

2

4

5

year

Projected cash flow

6,000,000 5,000,000 4,000,000 3,000,000

Net cashflow in year

2,000,000 Cash balance at end of year

1,000,000 1

2

3

4

5

year

Business Development plan of Radio Begnas FM

CHAPTER 5 FIXED CAPITAL REQIREMENT

5.1 Fixed capital requirement The fixed capital is the permanent capital that is very essential to run the business. The fixed capital requirement for any project deals with the fund require for the given time period that is fixed and do not varies with the condition. The detail of all fixed cap capital ital required for the feasibility analysis of Benas Radio is Rs. 1,457,434.

1400000 1200000 1000000 800000 600000 400000 200000 0 Building & Civil Works

Plant & Office Installation Machinery Equiptment & Furniture

Pre operating Expenses

5.2 Working capital Requirement Business Development plan of Radio Begnas FM

The working capital requirement for any project deals with the liquid funds needed to run the day to day operational activity within the organization. How much working capital is required for running the business, it depends upon the nature of business. The working capital requirement for our feasibility analysis is given as below:

Year Of Operation Current Assets ( Except Cash)(a) Total Current Liabilities (b) Net Current Assets / Working Capital Requirements ( a-b)

1

2

3

4

5

327,708

360,479

393,250

426,021

458,792

132,000

132,825

133,774

134,865

136,120

195,708

227,654

259,476

291,156

322,672

CHAPTER 6 FINANCIAL PLAN Business Development plan of Radio Begnas FM

6.1 Sources of financing Main sources of financing are given below: 1. Long term loan 2. Capital stock 6.2 Capital structure 60% of the investments are acquired from owner’s equity (Rs. 1,080,000) and remaining Rs. 720,000 is debt. 6.3 Loan drawing and payment schedule Loan will be drawn from bank at the rate of 16% for 5 years. The interest and principle payment will be monthly. The installment llment per month will be Rs. 17,509. 1 year

2

4

3

5

Interest

107,921

90,317

69,681

45,490

17,131

Principle

102,187

119,791

140,427

164,618

192,977

Total

210,108

210,108

210,108

210,108

210,108

200000 180000 160000 140000 120000 100000

Interest

80000

Principle

60000 40000 20000 0 1

2

3

4

5

6

Business Development plan of Radio Begnas FM

CHAPTER 7 FINANCIAL ANALYSIS

7.1 Return on Equity The Return on Equity (ROE) measures the return on the owner’s investment in the firm higher portion of return on equity is better for owner. Year Of Operation

Av erage

1

2

3

4

5

Return On Equity (%)

28.81%

19.99%

32.08%

33.24%

30.89%

27.86%

7.2 Return on assets Business Development plan of Radio Begnas FM

The Return on Asset (ROA), which is often called the firm’s return on total assets, measure the overall effectiveness of management in generating profit with its available assets. The higher the firm’s return on assets the better it is doing in operation and vice versa. Av erage Return on Assets (%) 31.48%

Year Of Operation

1

2

3

4

5

14.99%

30.36%

37.79%

38.36%

35.89%

7.3 Time interest earned ratio Time Interest Earn (TIE) is also called interest coverage ratio. The TIE ratio measures the extent to which interest on debt capital is covered by EBIT. It is calculated by dividing EBIT by interest charges.

TIER =

EBIT IE

Where

TIER

= Time interest earned ration

EBIT

= Earnings before interest and taxes

IE

= Interest expenses

Year Of Operation Interest Coverage Ratio (Times )

Av erage

1

2

3

4

5

41.03

4.3

10.4

19.9

40.0

130.5

7.4 Break even analysis The break-even point is the level of sales at which all revenue will be equal with all expenses and net income will be zero. Year Of Operation Profit Volume Ratio

98%

98%

98%

98%

Total fixed cost

3,325,844

3,506,775

3,399,958

3,312,411 3,238,037

3,172,041

Break Even sales

3,389,002

3,566,634

3,460,679

3,374,834 3,302,889

3,239,974

Average

1

2

3

4 98%

5 98%

Business Development plan of Radio Begnas FM

amount

Break even sales 3,600,000 3,500,000 3,400,000 3,300,000 3,200,000 3,100,000 3,000,000 2,900,000

total fixed cost break even sales

1

2

3

4

5

year

7.5 Profit margin Year Of Operation Net Profit Margin (EAT / Sales) %

Av erage 19.76%

1 6.86%

2 14.74%

3 20.97%

4 26.02%

5 30.22%

Business Development plan of Radio Begnas FM

Profit Margin 35.00% 30.00% 25.00% 20.00% 15.00%

Profit Margin

10.00% 5.00% 0.00% 1

2

3

4

5

7.6 Net Present Value Net Present value is the amount different between present value of cash inflow and cash outflow of the project. Net present value (NPV) method relies on discounted cash flow techniques. For finding the NPV we follow following process: 1. Find the present value of all cash inflow and outflow. 2. Subtract the investment amount from the sum of total present value.. 3. If the NPV is positive, the project should be accepted, while if the NPV negative, it should be rejected. The formula for finding the NPV is: NPV = TPV- NCO Where TPV = total present value NCO = net cash outflow NET PRESENT VALUE Business Development plan of Radio Begnas FM

1,851,397.22

Analysis:

Since NPV is positive, project is beneficial to initiate. That means present value of future cash flows is greater than initial cash outlay.

7.7 Internal Rate of Return The Internal Rate of Return (IRR) is the discounting rate that makes present of cash flows equal to the present value of the cash outflows of the project. The IRR is 46.61%. IRR % = LR + ( PV at LR - Investment ) X ( HR % - LR% ) ( PV at LR - PV at HR ) = 46.61% 7.8 Payback Period and discounted payback period The payback period is the expected number of year required to recover the investment of the project. and discounted payback period is defined as the expected number of years required to recover the original investments where expected cash flows are discounted by the project’s cost of capital. Payback period Discounted PB Period

2.23 2.78

years yrs

Analysis: Since the non discounted payback period is less than projected life period accept the project. That means project can recover its initial cash outlay with in the period of 2.23 years Analysis: Since the discounted payback period is less than projected life period of the project accept the project. That means project can recover present cash outlay discounting in a 16% cost of capital.

Business Development plan of Radio Begnas FM

7.9 Profitability index The profitability Index is defined as the ratio of TPV to NCO i.e. Profitability Index (PI) = TPV/ NCO

profitability index =

analysis:

2

Since profitability index is greater than 1 accept the project. That means present value of future cash flows is more than initial cash outlay.

CHAPTER 8 CONCLUSION AND RECOMMENDATION

8.1 Conclusion From the above research feasibility analysis we find that the projections we have made to evaluate the projects in terms of different financial criteria are feasible. From the projected data we have taken in to account from the different sources are more appropriate to our project

Business Development plan of Radio Begnas FM

evaluation. The project evaluation from the NPV, IRR, cash flow, discounted cash flow and many more methods are providing the more feasibility to establish the project near future. From the given research report we can say that there is the profitability in to our investment i.e. 2, discounted payback period is 2.23 years, IRR is 46.61% etc. From the given financial indicator we can say that the capital expenditure is viable to our project. The services that we are selling of capacity are projected from 50% to 70% which gives measurable profit and are feasible on the basis our budget. The methodology of our research design that we select in to our study is on the basis of the projected data that are from secondary sources and primary sources. The place that we have selected in to our study is also feasible because it has located near the sub-metropolitan city Pokhara Valley. The market coverage is viable which can include many more regions of Kaski, Tanahau, Lamjung and Syangja districts.

8.2 Recommendation We were able to perform successful feasibility analysis of Radio Begnas. The data which we used in this analysis to perform different calculation are real case data that was reference from valid sources. We did different financial calculation and projection and found the projected revenue budget, income statement, balance sheet, cash flow statement. Similarly we found the financial requirement and made the financial plan to carry out our feasibility analysis. Finally we performed financial analysis and draw many conclusions from our result.

Business Development plan of Radio Begnas FM

We recommend to every other individual that the analysis performed in this project report is completely truthful. We also assure people about the reliability of our work. So we recommend establishing this project.

Business Development plan of Radio Begnas FM

References
K. R. Bimal CHAPAGAIN (1996) Strategic Intervention towards the Improvement of Radio Nepal’s Development Performance. Master’s Thesis in the Asian Institute of Management. Manila, Philippines.
The Eight Five Year Plan (1991) National Planning Commission. Kathmandu, Nepal.


MISHRA, U. M. (1974) The Broadcasting Media Exposure and Modernization Force in Urban Slums, Media Area. Kathmandu, Nepal.
Paudel, R.B., Baral K.J., Gautam, R.R., Rana S.(2006). Fundamentals of corporate finance: financial planning and forecasting. Bhotahity, Kathmandu: Asmita publication.


Porter, G.A., & Norton, C.L.(second edition ). Financial Accounting: financial statement analysis. Fort Worth, Philadelphia, San Diego, New Work, Orlando, Austin: The Dryden Press.
Brigham & Ehrhardt (2005), Financial Management: Text and Cases, New Delhi, Cengage Learning India Private Ltd.


Van Horne, J. C., & Wachowicz, J. M. (2009). Fundamentals of Financial Management. New Delhi.
Pauley, S. E., & Riordan, D. G. (1996). Technical report writing today. Delhi. AITBS Publishers.

Business Development plan of Radio Begnas FM

Proposed Schedule

TIME Station open

Sajha Khabar

MON Station open Sajha Khabar

6.30am

CIN National songs

CIN National songs

7.00am

Ushakiran

8.00am

Manoj Sangita Begnas khabar

6.00 am

SUN Station open

Khabar team

TUE

WED

THUS

FRI

SAT

Station open

Station open

Station open

Station open

Station open

Sajha Khabar

Sajha Khabar

Sajha Khabar

Sajha Khabar

Sajha Khabar

National songs

National songs

National songs

CIN National songs

Ushakiran Manoj Sangita Begnas khabar

Ushakiran

Ushakiran

Ushakiran

Ushakiran

Ushakiran

Manoj Sangita

Manoj Sangita

Manoj Sangita

Manoj Sangita

Begnas khabar

Begnas khabar

Begnas khabar

Manoj Sangita Begnas khabar

Khabar team

Khabar team

Khabar team

Khabar team

Khabar team

Nepal Khabar

Nepal Khabar

Nepal Khabar

Nepal Khabar

Nepal Khabar

Ujyalo Mixmas geetharu

Ujyalo Mixmas geetharu

Ujyalo Mixmas geetharu

Ujyalo Mixmas geetharu

Ujyalo

GB ka lokbhaka

9.00am

Nepal Khabar

Khabar team Nepal Khabar

9.15am

Ujyalo Mixmas geetharu

Ujyalo Mixmas geetharu

10.00am

GB ka lokbhaka

GB ka lokbhaka

11.00am

Tulsing Begnas Dayari

11.15am

Khabar team Hamro Cinema

CIN

CIN

CIN

CIN National songs

Begnas khabar

Begnas Quiz Basanta

Badri 12.00pm

Nepal Khabar Ujyalo

GB ka lokbhaka

GB ka lokbhaka

GB ka lokbhaka

Tulsing Begnas Dayari

Tulsing

Tulsing

Tulsing

Begnas Dayari

Begnas Dayari

Begnas Dayari

Khabar team Hamro Cinema

Khabar team

Khabar team

Khabar team

Hamro Cinema

Hamro Cinema

Hamro Cinema

Badri Nepal Khabar

12.15pm

Remix Songs

Ujyalo Remix Songs

1.00pm

Mixmas

Mixmas

2.00pm

Begnas Dayari Khabar Team

Begnas Dayari Khabar Team

Pop jhankar Sameer

Badri Nepal Khabar Ujyalo

Badri Nepal Khabar Ujyalo

Badri Nepal Khabar Ujyalo

GB ka lokbhaka

Tulsing Begnas Dayari

Tulsing

Khabar team Hamro Cinema

Khabar team

Badri Nepal Khabar Ujyalo

Begnas Dayari

Hamro Cinema Badri Nepal Khabar Ujyalo

Remix Songs

Remix Songs

Remix Songs

Remix Songs

Remix Songs

Mixmas

Mixmas

Mixmas

Mixmas

S S manka kura

Begnas Dayari

Equel Acess

2.00pm

Begnas Dayari

Begnas Dayari

Begnas Dayari

Khabar Team

Khabar Team

Khabar Team

Pop jhankar

Pop jhankar

Pop jhankar

Pop jhankar

Sameer

Sameer

Sameer

Sameer

Khabar Team New Generation Punam

Begnas Dayari Khabar Team Pop jhankar Sameer

Business Development plan of Radio Begnas FM

3.00pm

Nepal khabar

Nepal Khabar

3.15pm

Ujyalo lok tatha dohori

Ujyalo lok tatha dohori

Begnas Khabar Khabar Team Sangit sangam

Begnas Khabar Khabar Team Sangit sangam

Bishnu

4.00pm

Nepal Khabar Ujyalo lok tatha dohori

Nepal Khabar Ujyalo lok tatha dohori

Nepal Khabar Ujyalo lok tatha dohori

Nepal Khabar Ujyalo Hamro Rodhighar Kisor Begnas Khabar Khabar Team Sangit sangam

Nepal Khabar Ujyalo lok tatha dohori

Begnas Khabar

Begnas Khabar

Begnas Khabar

Khabar Team

Khabar Team

Khabar Team

Ustai

Sangit sangam

Sangit sangam

Punam Tapaiko Rojai

Mahindra

Gangaram

Gangaram

Gufgaf

Mero Bichar

Gangaram

Nepal khabar

Gangaram Nepal khabar

Nepal khabar

Nepal khabar

Nepal khabar

Nepal khabar

Nepal khabar

Ujyalo

Ujyalo

Ujyalo

Ujyalo

Ujyalo

Ujyalo

Ujyalo

6.15pm

Geet haru

Geet haru

Geet haru

Geet haru

Geet haru

Geet haru

Geet haru

7.00pm

Begnas Khabar

Begnas Khabar Khabar Team Sajha Khabar

Begnas Khabar

Begnas Khabar

Begnas Khabar

Begnas Khabar

Begnas Khabar

Khabar Team

Khabar Team

Khabar Team

Khabar Team

Khabar Team

Sajha Khabar

Sajha Khabar

Sajha Khabar

Sajha Khabar

Sajha Khabar

4.15pm

5.00pm

Samjhanama Gangaram

6.00pm

Khabar Team 7.30pm

Sajha Khabar CIN

8.00pm

8.45pm

CIN

Toplal

CIN

Begnas Khabar Khabar Team Ustai Mahindra

Mindcheck

Gangaram Ma pani gauna

Sameer

Gd

Mahindra

CIN

CIN

Tapaiko Rojai

Suskera

CIN Hamro Gaurab

CIN

Suskera

Jivan Paddati

Suskera

Kamka Kura

Suskera

Thuldidi

Toplal

Thuldidi

Toplal

Thuldidi

Manoj

Thuldidi

BBC

BBC

BBC

BBC

BBC

BBC

BBC

BBC

BBC

BBC

BBC

BBC

BBC

Mero Yatra

BBC S S manka kura

9.00pm

Sajha Sawal

Gajal Gunjan

Mero katha

Mero Yad

Bishal Mero Bhawana

Dear kalyan

Arjun

10.00pm

BBC Bhariyaka Panaharu

AjaramarGitharu

AjaramarGitharu

Gd AjaramarGitharu

Equel access Mero Bhawana

Mero Katha Dear Kalyan AjaramarGitharu

Kisor

Kisor

Kisor

11.00pm

Old Songs

Old Songs

Old Songs

Old Songs

Old Songs

Old Songs

Old Songs

12.00pm

Stn Close

Stn Close

Stn Close

Stn Close

Stn Close

Stn Close

Stn Close

Business Development plan of Radio Begnas FM

A. Radio Transmission Systems

CLASS A (Rs.) QTY

DESCRIPTION Transmitter size: Antenna:

1 1

3.5 Kw 2 Bay

Tower and Line: Digital Capable Analog Transmitter with digital processing analog exciter (Assumes High Level Combining)

350' 42,000 (5 KW) IBOC transmitter w/IBOC exciter for High Level Combined 69,000 System (Includes IBOC exciter and Exciter Auxiliary Switching Unit)

1 1 1

IBOC Combiner for High Level (range is for 5 to 30KW) 7,000 Analog transmitter for Low Level Combining 59,000 IBOC(HD) exciter for Low Level Combining (includes Exciter 32,000 Auxiliary Switching Unit)

1 1 1

HD Radio Processor 9,000 IBOC licensing fees are required by manufacturer 5,000 Analog Transmitter ungradable to digital w/SCA and stereo 39,000 generators, spare tube, and spare parts kit

1 1 lot 1 1 1 1 1 1

Circularly polarized antenna (no radomes or heaters) Heliax transmission line and hangers Transmission tower Tower foundation cost Tower installation (including mounting antenna and line) FM Radio Processor Dummy load STL system (transmitter and receiver). Price includes two 6' dishes and feedline of 200' with hot standby

1

STL tower (100' high with STL antenna, line and monitoring 25,000 receive antenna installed at studio site)

1 1 1

Transmitter remote control system 8,000 6' equipment rack with side panels 1,400 Frequency and modulation monitor system for stereo and SCA. 10,000 SCA required for telemetry monitoring.

1

Amplifier (audio) for off-air monitoring, including speakers 869 (system fed from monitoring equipment)

3,700 4,200 60,000 15,000 25,000 9,000 1,900 42,000

Business Development plan of Radio Begnas FM

1 1 1 1 lot 1 lot 1 lot

EAS/CAP receiver and decoder/encoder Transmission line dehydrator Equipment shelter w/concrete pad Transmitter AC power installation (assuming power at site location) Transmitter ventilation Transmitter installation cost including miscellaneous materials

4,000 1,500 19,500 8,000 3,500 8,000

B. Radio Test Equipment QTY

DESCRIPTION

STUDIO

XMTR

(Rs.)

(Rs.)

1

Digital audio test set; includes laptop

65,500

1

Frequency counter

2,500

2,500

1

Oscilloscope

3,500

3,500

1

Multimeter

350

350

c. On-Air Control Room (Radio) QTY

DESCRIPTION

PRICE (Rs.)

1

Analog or digital audio console

26,000

1

Audio network router w/logic interface and input/output modules

55,000

2

Speakers

1,000

1

Monitor amplifier

500

1

Audio hard disc storage system, system cost

45,000

2

Microphones with booms

1,200

2

Broadcast quality CD players

2,000

2

Direct-drive turntables @ Rs.750

1,500

Business Development plan of Radio Begnas FM

2

Stereo turntable preamps @ Rs.395

790

2

Turntable arms @ Rs.120

240

2

Stereo cartridges for turntables @ Rs.50

100

1

Custom cabinet for audio console and turntables

6,000

4

6' equipment racks @ Rs.545, plus one set of side panels @ Rs.235

2,415

4

Jack panels/wired, with jack cords

4,800

2

Headphones @ Rs.150

300

6

Distribution amplifiers @ Rs.350

2,100

1 lot

Miscellaneous wire, ground strap, and installation materials

5,000

1 lot

Labor for installation of On-Air control room

10,000

D. Production Control Room and Associated Studio (Radio) QTY

DESCRIPTION

PRICE (Rs.)

1

Analog or digital audio console

36,000

1

Non-linear editing system

30,000

4

Speakers

2,000

2

Monitor amplifiers

1,000

2

Audio limiters @ Rs.600

1,200

6

Microphones with stands

2,000

2

Broadcast quality CD players

2,000

2

Direct-drive turntables @ Rs.750

1,500

2

Stereo turntable preamps @ Rs.395

790

2

Turntable arms @ Rs.120

240

2

Stereo cartridges for turntables @ Rs.50

100

1

Custom cabinet for audio console and turntables

6,000

Business Development plan of Radio Begnas FM

1

6' equipment rack with side panels

1,500

4

Jack panels w/cords

4,800

2

Headphones @ Rs.150

300

1 lot

Miscellaneous wire, ground strap, and installation materials

5,000

1 lot

Labor for installation of production control room

10,000

E News Control Room (Radio)

QTY

DESCRIPTION

1 2 1 lot 4 4 2 2

Audio console with monitor amplifier Speakers Flash card recorder Microphones Microphone stands Microphones for use with portables @ Rs.65 Headphones @ Rs.150

PRICE (Rs.) 8,000 500 600 600 140 130 300

1 lot

Laptop computer w/flash card reader

65000

Business Development plan of Radio Begnas FM

Production and sales estimate

Total working Hour/ Day Total working Days

18 365

Total Working Hours Over time avilable (hour)

6,570 0

Details of service Particulars

assumption

unit

25%

of total time hr per day hr per day

advertising program time sold sponsorship

3 1

Annual Capacity 1,643 1,095 365

Total 2,738 remaining time allocated for musical songs, news , live telecast and official media

Revenue Budget 100% capacity

Particular advertising program time sold sponsorship

sales price

Amount(100%)

1,643

4000

1,095

10000

912,500.00

6000

182,500.00

365

miscellaneous

6,570,000.00

200,000.00

Total

7,865,000.00

Projected sales Revenue Capacity sales revenue advertising program time sold sponsorship miscellaneous

6,570,000 912,500 182,500 200,000 7,865,000

50% 1 3,285,000 456,250 91,250 100,000 3,932,500

55%

60%

65%

2 3,613,500 501,875 100,375 110,000 4,325,750

3 3,942,000 547,500 109,500 120,000 4,719,000

4,270,500 593,125 118,625 130,000 5,112,250

4

schedule-13 70% 5 4,599,000 638,750 127,750 140,000 5,505,500

Business Development plan of Radio Begnas FM

Projected Income statement

S.N. A

Particular Sales

schedule 13

year 1 3,932,500

year 2 4,325,750

B

Variable Exp

14

66,000

75,900

C

contribution margin (A-B) Operating Expenses salary and benefit Depreciation Operating Expenses

3,866,500

4,249,850

4,631,715 5,011,872

5,390,066

2,301,000 362,854 735,000

2,301,000 273,640 735,000

2,301,000 2,301,000 206,730 156,548 735,000 735,000

2,301,000 118,911 735,000 -

11-A 10 11-B

year 3 year 4 4,719,000 5,112,250

Schedule-3 year 5 5,505,500

87,285

100,378

115,434

D

Total Operating Exp

3,398,854

3,309,640

3,242,730 3,192,548

3,154,911

E

EBIT (C-D)

467,647

940,210

1,388,985 1,819,325

2,235,155

F

Interest

107,921

90,317

G

EBT(E-F)

359,725

849,892

H

tax (25%)

89,931

212,473

329,826

443,459

554,506

EAT(G-H)

269,794

637,419

989,478

1,330,376

1,663,518

11-C

69,681

45,490

1,319,304 1,773,835

17,131 2,218,024

Projected balance sheet

S/N Year Of Operation

0

Schedule

1

2

3

4

Schedule4 5

ASSET A

B

Current Assets Cash

5

Current Asset ( except cash)

6

Fixed Assets

10

Total Assets (A+B)

342,586

1,005,047 1,797,141 2,853,870 4,177,267 5,767,973

342,586

677,338

1,436,661 2,460,620 3,751,246 5,309,181

-

327,708

360,479

393,250

426,021

458,792

1,457,414 1,094,561 820,920

614,190

457,643

338,732

1,800,000 2,099,607 2,618,061 3,468,061 4,634,910 6,106,705 Business Development plan of Radio Begnas FM

CAPITAL & LIABILITIES A

Current Liabilities

5

B

Short Term Loan

2

C

Long Term Loan

2

D

Share Capital

2

E

Reserves & Surplus

3

Total Capital & Liabilities(A+B+C+D+E)

-

132,000

132,825

133,774

134,865

136,120

-

-

-

-

-

-

720,000

617,813

498,023

357,596

192,977

-

1,080,000 1,080,000 1,080,000 1,080,000 1,080,000 1,080,000 269,794

-

907,213

1,896,691 3,227,067 4,890,586

1,800,000 2,099,607 2,618,061 3,468,061 4,634,910 6,106,705

Projected Cash flow statement SN Year Of Operation A Sources of Fund 1 Opening Cash Balance 2

schedule

1

2

342,586

677,338

4

5

1

Cash from operational activities

2

EBIT

3

Add : depreciation

10

830,500

3

3

1,436,661 2,460,620 3,751,246

1,213,850 1,595,715 1,975,872 2,354,066

467,647

940,210

1,388,985 1,819,325 2,235,155

362,854

273,640

206,730

156,548

118,911

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Cash from financing activities Equity Short Term Loan

a

Long Term Loan Total Cash Available (1+2+3)

1,173,086 1,891,188 3,032,376 4,436,493 6,105,312

Business Development plan of Radio Begnas FM

B

Usage of Fund Increase (Decrease ) in Working Capital

6

Purchase of Fixed Assets

10

Payment of Principal of Term Loan

12

Payment of interest of Short Term Loan

11-c

Payment of Interest of Term Loan

11-c

Payment of principle of Short Term Loan Payment of dividend Payment of Tax b

Total Cash Usage (b) net cash flow (a-b-1) Cash Balance (a - b)

particular

195,708 31,946

31,822

31,680

31,516

-

-

-

-

102,187 119,791

140,427

164,618

192,977

-

-

-

-

107,921 90,317

69,681

45,490

17,131

-

-

-

-

-

-

-

-

-

-

89,931

212,473

329,826

443,459

554,506

495,748 454,527

571,756

685,247

796,130

334,752 759,323

1,023,959 1,290,626 1,557,935

-

-

677,338 1,436,661 2,460,620 3,751,246 5,309,181

1

years 3

2

4

5

Opening Cash Balance

342,586.00

677,338.35

1,436,661.40

2,460,620.34

3,751,246.04

Total cash received in year

830,500.00

1,213,850.00

1,595,715.00

1,975,872.25

2,354,065.59

total cash usage in year netcash flow during the year

495,747.65

454,526.95

571,756.06

685,246.55

796,130.19

334,752.35

759,323.05

1,023,958.94

1,290,625.70

1,557,935.40

Closing cash balance

677,338.35

1,436,661.40

2,460,620.34

3,751,246.04

5,309,181.44

Business Development plan of Radio Begnas FM

Advertisement Tariff

Spot Length

5am to 10am

10am to 5pm

5pm to 11pm

15sec

Rs 50

Rs40

Rs 50

20sec

Rs 60

Rs 50

Rs 55

25 sec

Rs 65

Rs 55

Rs 60

30 sec

Rs 70

Rs 60

Rs 65

40 sec

Rs 75

Rs 65

Rs 70

45 sec

Rs 80

Rs 70

Rs 75

50sec

Rs 85

Rs 75

Rs 80

60 sec

Rs 90

Rs 80

Rs 85

before news surplus charge

50 %

50%

50%

In between News

100%

100%

100%

surplus charge

Minimum Sponsorship Programme Cost Size

6am to 10am

10am to 5pm

5pm to 11pm

One Hour

Rs 8000

Rs 7000

Rs 7500

Half an hour

Rs 7000

Rs 6000

Rs 6500

Special time 14 minutes

Rs 3000

Rs 2500

Rs 2800

Special time 25 minutes

Rs 4000

Rs 3000

Rs 3500

Special time 60 minutes

Rs 8000

Rs 7000

Rs 7500

Business Development plan of Radio Begnas FM

Fixed Capital Requirement

Plant & Machinery 1,252,414.00

Radio transmission system

1

515,569 515,569.00

Radio Test Equipment

1

78,200 78,200.00 163,945

On-Air Control Room (Radio)

1

Production Control Room and

1

104,430.00

Associated Studio (Radio)

1 65,000.00

65,000.00

News Control Room (Radio

1 75,270.00

75,270.00

program software

1 250,000.00

250,000.00

163,945.00

104430

Office Equiptment & Furniture 100,000.00 furnitures like chair, table etc 1

100,000

100,000.00 -

Installation 75,000.00 75000

instalation of office equipment 1

75,000.00

Pre operating Expenses 30,000.00 registration,legal and feasibility study

1

30,000

30,000.00 1,457,414.00

Working Capital 342,586.00 TOTAL INVESTMENT 1,800,000.00

Business Development plan of Radio Begnas FM

Depreciation sheet 1 S.N.

DEP.

Particulars

2

3

4

5

Schedule10

opening bal

dep

bal at end

dep

bal at end

dep

bal at end

dep

bal at end

dep

bal at end

-

-

-

-

-

-

-

-

-

-

-

1

building and shed

2

25%

1,252,414

313,104

939,311

234,828

704,483

176,121

528,362

132,091

396,272

99,068

297,204

4

plant and machinery office equipment and furniture

25%

100,000

25,000

75,000

18,750

56,250

14,063

42,188

10,547

31,641

7,910

23,730

6

installation

25%

75,000

18,750

56,250

14,063

42,188

10,547

31,641

7,910

23,730

5,933

17,798

7

pre-operating exp

30,000

6,000

24,000

6,000

18,000

6,000

12,000

6,000

6,000

1,457,414

362,854

1,094,561

273,640

820,920

206,730

614,190

156,548

457,643

5%

total

6,000 118,911

schedule-6 Year Of Operation

A

Days

1

2

3

4

5

CURRENT ASSETS Receivables

30

327,708

360,479

393,250

426,021

393,250

426,021

7,274

8,365

126,500

126,500

133,774

134,865

259,476

291,156

458,792

Inventories Current Assets ( Except Cash)(a) B

327,708

360,479

458,792

CURRENT LIABILITIES payable

30

office overhead

30

Total Current Liabilities (b) Net Current Assets / Working Capital Requirements ( a-b) change in working capital

5,500 126,500 132,000

195,708

195,708

6,325 126,500 132,825

227,654

31,946

31,822

31,680

9,620 126,500 136,120

322,672

31,516

Business Development plan of Radio Begnas FM

338,732

Capital structure Total Ratio

Particulars

Amount Rs.

Owner's Capital

60% 1,080,000.00

Long Term Loan Short term Loan

40% 720,000.00 0% 100% 1,800,000.00

Total

Usage of Fund Total Ratio

Particulars

Amount Rs.

Current Assets

20% 342,586.00

Fixed Assets

81% 1,457,414.00 101% 1,800,000.00

Total

DETAILS OF LONG TERM LOAN & LOAN REPAYMENT SCHEDULE Schedule - 12 A)

DETAILS OF LONG TERM LOAN Loan amount Interest Rate per annum Periodic interest Rate ( quaterly ) Instalment in a year No. of installments Loan Period Instalment Amount Principal Payment Interest Payment Total Interest Payment Total Principal Payment Total Interest & Principal

:

Rs.

: : : :

5

: : : : : :

$17,509.00 Monthly Monthly Rs. Rs. Rs.

720,000 16% 1.33% 12 60 Years / instalment

330,540 720,000 1,050,540

Business Development plan of Radio Begnas FM

-

B)

LOAN REPAYMENT SCHEDULE :

MONTHLY PAYMENT Year

1

2

No. of Instalm ent

Instalment Amount Rs.

Interest Payment Rs.

Principal Amount Rs.

Outstanding Principal Rs.

1

17,509

9,600

7,909

712,091

2

17,509

9,495

8,014

704,077

3

17,509

9,388

8,121

695,955

4

17,509

9,279

8,230

687,726

5

17,509

9,170

8,339

679,386

6

17,509

9,058

8,451

670,936

7

17,509

8,946

8,563

662,373

8

17,509

8,832

8,677

653,695

9

17,509

8,716

8,793

644,902

10

17,509

8,599

8,910

635,992

11

17,509

8,480

9,029

626,963

12

17,509

8,360

9,149

617,813

13

17,509

8,238

9,271

608,542

14

17,509

8,114

9,395

599,147

15

17,509

7,989

9,520

589,626

16

17,509

7,862

9,647

579,979

17

17,509

7,733

9,776

570,203

18

17,509

7,603

9,906

560,297

19

17,509

7,471

10,038

550,258

20

17,509

7,337

10,172

540,086

21

17,509

7,201

10,308

529,778

22

17,509

7,064

10,445

519,333

23

17,509

6,924

10,585

508,748

24

17,509

6,783

10,726

498,023

No. of Instalm ent

Instalment Amount Rs.

Interest Payment Rs.

Principal Amount Rs.

Outstanding Principal Rs.

25

17,509

6,640

10,869

487,154

26

17,509

6,495

11,014

476,140

27

17,509

6,349

11,160

464,980

ANNUAL PAYMENT Annual Instalment

Annual Interest Rs.

Annual Principal Rs.

Remaining Principal Rs.

210,108

107,921

102,187

617,813

210,108

90,317

119,791

498,023

Annual Instalment

Annual Interest Rs.

MONTHLY PAYMENT Year

3

ANNUAL PAYMENT Annual Principal Rs.

Remaining Principal Rs.

Business Development plan of Radio Begnas FM

4

5

Total

28

17,509

6,200

11,309

453,671

29

17,509

6,049

11,460

442,211

30

17,509

5,896

11,613

430,598

31

17,509

5,741

11,768

418,830

32

17,509

5,584

11,925

406,905

33

17,509

5,425

12,084

394,822

34

17,509

5,264

12,245

382,577

35

17,509

5,101

12,408

370,169

36

17,509

4,936

12,573

357,596

37

17,509

4,768

12,741

344,855

38

17,509

4,598

12,911

331,944

39

17,509

4,426

13,083

318,861

40

17,509

4,251

13,258

305,603

41

17,509

4,075

13,434

292,169

42

17,509

3,896

13,613

278,555

43

17,509

3,714

13,795

264,761

44

17,509

3,530

13,979

250,782

45

17,509

3,344

14,165

236,616

46

17,509

3,155

14,354

222,262

47

17,509

2,963

14,546

207,717

48

17,509

2,770

14,739

192,977

49

17,509

2,573

14,936

178,041

50

17,509

2,374

15,135

162,906

51

17,509

2,172

15,337

147,569

52

17,509

1,968

15,541

132,028

53

17,509

1,760

15,749

116,279

54

17,509

1,550

15,959

100,321

55

17,509

1,338

16,171

84,149

56

17,509

1,122

16,387

67,762

57

17,509

903

16,606

51,157

58

17,509

682

16,827

34,330

59

17,509

458

17,051

17,279

60

17,509

230

17,279

0

1,050,540

330,540

720,000

210,108

69,681

140,427

357,596

210,108

45,490

164,618

192,977

210,108

17,131

192,977

0

1,050,540

330,540

720,000

Business Development plan of Radio Begnas FM

Important financial ratios

SN

Av erage 19.76%

Year Of Operation

1

Net Profit Margin (EAT / Sales) %

2

Total Assets Turnover ( Times )

3

Fixed Assets Turnover (Times )

4

Current Assets/ Fixed Assets (Times )

5

Current Liabilities / Total Capital (Times )

6 7 8

Return On Investment (%) Return On Equity (%) Return on Assets (%)

9

Current Ratio ( Times)

10

Interest Coverage Ratio (Times )

11 12

Interest / Sales (%) EBIT/ Sales (%)

13

Total Expenses / Sales ( %)

1

2

6.86%

14.74% 20.97% 1.65

1.87

1.38

3

1.36

4

5

26.02%

30.22%

1.10

0.90

8.79

3.59

5.27

7.68

11.17

16.25

6.78

0.92

2.19

4.65

9.13

17.03

0.04 54.34% 28.81% 31.48%

0.06 0.05 14.99% 35.41% 19.99% 32.08% 14.99% 30.36%

0.04 0.03 0.02 54.97% 73.91% 92.42% 33.24% 30.89% 27.86% 37.79% 38.36% 35.89%

23.17

7.6

21.3

13.5

31.0

42.4

41.03 4.3 10.4 19.9 40.0 130.5 1.50% 2.74% 2.09% 1.48% 0.89% 0.31% 27.85% 11.89% 21.74% 29.43% 35.59% 40.60% 74%

91%

80%

72%

65%

60%

Break even analysis

Year Of Operation 1

Total Sales

2

Total Variable Cost

3

Total Fixed Cost

4

Profit Volume Ratio

5

Break Even Sales

Average

1

2

3

4

5

4,719,000 3,932,500 4,325,750

4,719,000 5,112,250

5,505,500

88,999

87,285

115,434

66,000

75,900

3,325,844 3,506,775 3,399,958 98%

98%

98%

3,389,002 3,566,634 3,460,679

100,378

3,312,411 3,238,037 98%

98%

3,374,834 3,302,889

3,172,041 98% 3,239,974

Business Development plan of Radio Begnas FM

7

Break Even Sales % Cash BEP

8

Safety Margin Rs.

9

Safety Margin (%)

6

73.13%

91%

80%

72%

65%

59%

66.48%

78.52%

71.44%

65.55%

60.58%

56.33%

1,329,998 365,866 865,071 1,344,166 1,809,361 2,265,526 26.87% 9.30% 20.00% 28.48% 35.39% 41.15%

PAY BACK PERIOD NON DISCOUNTED PAY BACK PERIOD Year 0

CFAT Rs.

Cummulative Cash Flow Rs.

(1,800,000)

(1,800,000)

1

544,860

2

969,431

3

1,234,067

4

1,500,734

5

1,768,043

Payback period

(1,255,139.64) (285,708.57) 948,358.38 2,449,092.09 4,217,135.50

2.23 years

DISCOUNTED PAY BACK PERIOD Year 0

CFAT

Discount Factor @ 16.00%

Discounted Cashflow Cash Flow

1

(1,800,000)

(1,800,000)

1

544,860

0.8621

469,707

2

969,431

0.7432

720,445

3

1,234,067

0.6407

790,614

4

1,500,734

0.5523

828,842

5

1,768,043

0.4761

841,788

Cumulative Cashflow (1,800,000) (1,330,293) (609,848) 180,767 1,009,609 1,851,397

1,851,397 Discounted PB Period

2.78

yrs

Business Development plan of Radio Begnas FM

NET PRESENT VALUE Year

Cash Flow

Discount Factor @ 16%

After Tax 0

1.000

(1,800,000)

Discounted Cashflow Cash Flow

1

544,860

0.8621

(1,800,000) 469,707

2 3 4 5

969,431 1,234,067 1,500,734 1,768,043

0.7432 0.6407 0.5523 0.4761

720,445 790,614 828,842 841,788

NET PRESENT VALUE

1,851,397.22

TOTAL PRESENT VALUE

3,651,397.22

46.61%

INTERNAL RATE OF RETURN Year 0

Discount Factor @ 46.61%

CFAT

1.000

(1,800,000)

1 2 3 4 5

544,860 969,431 1,234,067 1,500,734 1,768,043

0.6821 0.4652 0.3173 0.2164 0.1476 Net Present Value

Discounted Cash flow Cash Flow (1,800,000.00) 371,631.69 450,995.27 391,580.72 324,798.30 260,994.02 0.00

PROFITABILITY RATIO Total Present Value (TPV) =

3,651,397

Investment (I) =

1,800,000

Benefit Cost Ratio = TPV / I =

2.0 times

Business Development plan of Radio Begnas FM

Summary of capital Budgeting Total Project Investment

1,800,000.00

Total Present Value

3,651,397.22

Net Present Value

1,851,397.22

Internal Rate of Return

47%

Pay Back Period (Years)

2.23

PB Period(Discounted) Years

2.78

Benefit Cost Ratio (PCR):

2.03

BEP Sales ( %)

73%

For more: contact me; [email protected], [email protected] Cell phone : 9779847114473

Business Development plan of Radio Begnas FM