Petrol on wheels

The PPT is all about mobile petrol vehicle recently introduced in many parts of India.

1. Petrol On Wheels

2. Contents Introduction Business Model How it works? Why we choose this? Old Approach VS Modern Approach Choosing the best Approach? Advantages Limitations Financial Structure Analysis of revenue, operating & fixed costs Profit/Loss & Balance Sheet Notes to Accounts Cost Analysis Break Even Point Analysis Conclusion

3. Technology has made our lives easier and our future a lot better. One of the technological upgrades which directly helped us in upgrading our living standards is the concept of doorstep delivery. Earlier it was only food, clothes, groceries, or essentials that could be delivered to the doorstep. But now, even energy is being delivered online with petroleum product to reach its end-users. In this ppt we will tell u all about how and why this modern technology helps us to be more standard in this field. This approach mainly beneficial for rural areas as well as high altitude areas because in both the areas there is no easy access to petroleum. There are lot of farm equipment’s which needs fuel. The villagers have to come to city for fuel which is always time-consuming activity. In this we talk about all the tools and structure, how it works, how Financially it is a beneficial to the economy and other Accounts Analysis will be done in this whole presentation. Introduction

4. In rural areas there is no easy access to petroleum in rural areas. There are lot of farm equipment’s which needs fuel. The villagers have to come to city for fuel which is always time-consuming activity. The main aim of launching this service in Mumbai, Haryana, Bihar, Andhra Pradesh, Delhi, U.P. and other states also to ease the lives of the end consumers without the hassles of oil procurement. The government approved the doorstep Petroleum Products delivery system and is the new age concept of effective distribution of Petroleum Products. It allows fuel start-ups to maintain quality and create the availability of fuel for the consumers. The system will hugely benefit the agricultural sector, hospitals, housing societies, heavy machinery facilities, mobile towers and much more. The idea of initiating door-step delivery of motor fuels was floated in 2017. Sometime later, Indian Oil, Bharat Petroleum & Hindustan Petroleum had started pilot projects in this space. The initial recipients for diesel delivery were stationary installations such as telecom towers and diesel generator sets. Now it works on whole petroleum produc ts Business Model

5. HOW IT WORKS?

6. Old Approach

7. Modern Approach Get fuel at your door step. Available 24x7 Avoid queue & order fuel by just one click sitting at home

8. We get your fuel directly, saving time & money and saving costs. Enjoy Hassle-Free Petroleum delivery The dispensing unit is certified by the government approved Weights & Measures department. Fuel is delivered to the customer specified locations through Geofencing, only after the customer has been authenticated Choosing the best approach

9. Customer doesn’t need to go to Petrol Pump. Safe & secure transaction of payments For Entrepreneur. Less capital investment. Less maintenance & Unloading Charges. Low labour compared to old concept. Advantages

10. Frequent out stocks due to more demand. Storage & transportation problem due to unfavourable climatic condition. More loading & unloading cost. Disadvantages 02 03 01

11. … ₹ inancial $ tructure … Financial structure refers to the mix of Assets and  Liabilities  that a company uses to finance its operations. This composition directly affects the risk and value of the associated business. The financial managers of the business have the responsibility of deciding the best mixture of assets and liabilities for optimizing the financial structure.

12. Analysis of Revenue, Operating & Fixed Costs. Revenue- It is the total amount of income generated by the sale of goods & service related to the primary operations of the business. Commercial revenue may also be referred to as sales or as turnover . Operating Cost- These are the ongoing expenses incurred from the normal day-to-day of running a business. We can also term it as working capital. Examples of operating costs include: repair & maintenance, advertisement costs, etc. Fixed cost- It is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold. Examples : license fee, IOCL charges, audit fees, vehicle insurance, etc.

13. Profit/Loss & Balance Sheet

14. Notes to Accounts

15. Variable Cost Amount (Rs.) Fixed Cost Amount (Rs.) Electricity Charges 10,560.00 License Fee 20,900.00 Printing & Stationery 32,498.00 IOCL Charges(Automation ) 1,75,335.00 Repair & Maintenance 2,05,800.00 CSR 60,750.00 Staff Salary 13,80,500.00 Solar Panel Expenses 1,56,420.00 Staff welfare 1,05,640.00 Audit Fees 25,000.00 Loading Charges 2,32,500.00 Accounting Charges 84,000.00 Test & Laboratory Expenses 48,435.38 Bank Charges 19,351.20 Travelling & Conveyance 1,50,600.00 Bank Interest 1,87,460.25 Telephone Expenses 35,610.00 General Expenses 49,650.00 Mess Expenses 54,890.23 Vehicle Insurance 2,76,520.00 Uniform Expenses 26,540.00 Total 22,83,573.61 Total 10,55,386.45 Total Cost= Variable Cost + Fixed Cost = 22,83,573.61+10,55,386.45 = 33,38,960.06 Cost Analysis

16. Calculation of Break Even Point Sales 18,75,62,502.37 Less: Operating Cost Cost of Material 18,17,81,440.19 Variable Expenses 22,83,573.61 18,40,65,013.80 Contribution 34,97,488.57 Less: Fixed Cost 10,55,386.45 EBITDA 24,42,102.12 Less: Depreciation 13,32,007.00 EBIT 11,10,095.12 PV Ratio (Contribution/Sales) 1.86% Break Even Point Analysis Break Even Point (Fixed Cost/PVR) = 56,598,019

17. On-demand fuel delivery started off as a novelty and quickly gained popularity. Now diesel delivery services are available in major cities across the country and is seeing a positive spike in expansion to more areas. Once regulation becomes standardized there will be an explosion of on-demand fuel service due to its convenience and better utilization of scarce resources. Not to forget the immense value for time and money, the customers stand to gain. This collective change initiated by the oil marketing companies and various startups, will help in reducing carbon footprints, eliminate pilferage, zero wastage of fuel, no over-billing, quality and quantity assurance thanks to technology that only unlocks the mobile dispensers at the destination.  CONCLUSION

18. Submitted By: Prity Sikha Sahu (321SM1033) Sthitaprajna Das (321SM1012) Nirlipta Ranjan Panda (321SM1027) Shailaja Samal (321SM1035) Deepak Ranjan (321SM1032)