final book (printing).doc

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CHAPTER I

THE PROBLEM AND ITS SCOPE

INTRODUCTION

Rationale of the Study

Most of us do not notice it. It has been used in writing papers at school, to

print the labels of the food in the supermarket, to print reports or forms at work

and even to print pictures. It drips, leaks, marks, and drains from the faulty

ballpoint pen in our pocket. Yet, it has a direct impact on our everyday life. Yes,

its all about INK. Ink is such a tiny word with three letters but has played such a

huge part on the stage of world history, economy and education of every person,

especially ilipinos. It has a great significance in spreading knowledge in the

form of the printed word. Ink is everywhere and it is impossible to function without

touching ink at least a couple of hundred times a day.

Ink companies have been spreading several brands of ink in the country

and even in the whole world !ust to provide the needs of the people everyday.

"randed inks became more costly and consumers budget have been greatly

affected. #nd components of an ink affects the cost of the said product.

Inks are made up from the solvents and pigment ingredients which help

ceate some inks color and shine. Inks can also be ha$ardous to ones health

once ingested. %ertain inks, such as those used in digital printers, and even

those found in a common pen can be harmful, due its the components that it has.

&ith these concerns as well as the benefits that inks have provided us,

the researchers decided to conduct a study on the 'roduction and (istribution of


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Ink out of #lugbati )%eylon *pinach+ "erries. Instead of toic components, we are

to use natural ones. If the study is found feasible and there upon carried out, the

pro!ect could provide ink users and consumers a low priced, less dangerous to

ones health, and could respond to a demand of better environmental

sustainability.

STATEMENT OF THE PROBLEM

-his study was aimed to determine the viability, practicability and

profitability of the 'roposed 'roduction and (istribution of Ink from #lugbati

"erries. *pecifically, the following ueries were answered/

0. Is the proposed pro!ect feasible in terms of the following aspects/

0.0 Marketing

0.1 -echnical

0.2 Management

0.3 4egal and -aation

0.5 inancing

0.6 inancial

0.7 *ocio89conomic (esirability:

1. "ased on the findings, what recommendations may be proposed

regarding the pro!ect:

SIGNIFICANCE OF THE STUD

#lugbati berries can be found anywhere and some people perceive that

the fruits of this particular plant have of no value. In general, the significance of

this study will show how this natural resource can be used to create something


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that can be of big help. -hough, in creating and producing this product, there are

two things that we need to consider. irst, if the consumers will choose this

product among other alternatives. *econd, if it will satisfy the need and want of a

consumer. #nd thus encourage consumers employing some of the traditional ink

refills to switch to the environmentally friendly ink refills specifically for markers

and stamps. -hus, this book is intended to provide necessary information and

benefits to the different sectors as beneficiaries.

P!o"onent#

-hrough this study, the proponents obtained more knowledge and better

understanding of the business aspects and was able to eplore and discover the

real world. -his study has made them encounter diversified eperiences and

eposures that developed their camaraderie and interpersonal skills in the

process of conducting the surveys, interviews and researches. -his undertaking

assisted them in boosting their confidence and skills, and has developed in them

the value of time and hardwork. It further made them reali$e the essence of

sacrifice, patience and teamwork. It made them become more aware with the

environment. Most importantly, the process of conducting this research study

would serve as a strong foundation to help them survive and be a successful

professional in the near future.

Futu!e Re#ea!$he!#

ormulating a feasibility study is not easy. 9ventually this study could be

used as a reference material for future researchers in the conduct of their own

studies. It can also provide them inputs which may be used as references for


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their future proposals. It can also serve as their inspiration and challenge in

making their own study with full dedication.

P!o#"e$ti%e in%e#to!#

Investors are not only concerned about earning profits but also the

continouos patronage of the consumers to its product. -hus, this study will be of

big help to them in making decisions whether to invest or not. In this study they

are provided with the full information about the actual operations of the business

and its impact to the economy. -his would make them foresee and anticipate

possible risks and benefits they may encounter.

Finan$in& In#titution#

or a business to begin its operation, capital is very important. -hus,

business needs financial assistance from different financing institutions. -his

study would serve as a basis for creditors whether to etend monetary

assistance to the prospective investors and determine the credit terms and

condition if loan will be granted.

Go%e!n'ent

-he government has the responsibility to ensure the safety and security of

the society and its constituents. -his study would help the government determine

the possible advantages and the disadvantages of the proposed pro!ect to the

society.


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Ta!&et 'a!(et

-his ink refill can be used for paper works, office works, and can also be

used as a substitute or alternative to the commercial inks. "ased on this study

the target market would be able to have an option whether to use this or not.

DEFINITION OF TERMS

-o aid the readers in understanding the study better, some terms used in

this book need to be defined.

Alu&)ati

Is a perennialvinefound in the tropical countries such as 'hilippines,

where it is widely used as a leaf vegetable.

De#$!i"ti%e Su!%ey

Is also known as statistical research, describes data and characteristics

about the population or phenomenon being studied.

Fea#i)ility Study

-his refers to the systematic gathering and analysis of data that aims to

find out the practicability and profitability of a proposed business undertaking.

Finan$ial In#titution#

#n establishment that focuses on dealing with financial transactions, such

as investments, loans and deposits. %onventionally, financial institutions are

composed of organi$ations such as banks, trust companies, insurance

companies and investment dealers.
http://en.wikipedia.org/wiki/Perennial_planthttp://en.wikipedia.org/wiki/Vinehttp://en.wikipedia.org/wiki/Leaf_vegetablehttp://en.wikipedia.org/wiki/Perennial_planthttp://en.wikipedia.org/wiki/Vinehttp://en.wikipedia.org/wiki/Leaf_vegetable


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Finan$ial A#"e$t

-his aspect shows the profitability level and estimated financial position if

the pro!ect is implemented. It also presents the pro!ected financial statements,

supporting schedules and analysis.

Finan$in& A#"e$t

-his aspect gives detailed data on how much capitali$ation will be needed

to finance the pro!ects operation.

In(

# pigmented liuid or paste used especially for writing or printing.

Le&al and Ta*ation A#"e$t

-his aspect presents the reuirements mandated by law for the business

to legally operate and taes to be paid.

Mana&e'ent A#"e$t

-his aspect determines the appropriate type of business organi$ation to

be adopted, the ualifications and functions of the personnel to be hired, their

compensation and benefits. It also presents the business policy to be imposed by

the proposed pro!ect in order to ensure efficient and effective operation.

Ma!(etin& A#"e$t

-his aspect eamines the current and future demand and supply situation

of the proposed pro!ect. It pro!ects the ability of the pro!ect to penetrate the

market and also establishes the annual uantity which the pro!ect may sell and

estimates future selling prices, thus it designs the marketing program of the

product.


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So$io+e$ono'i$ De#i!a)ility

-his presents the proposed pro!ects social and economic contributions to

the various sectors of the society and to the country as a whole that etends the

traditional factors of providing material goods for the social progress of the

community.

Ta!&et Ma!(et

Is a group of customers that the business has decided to aim

its marketing efforts and ultimately its merchandise towards. # well;defined target

market is the first element to a marketing strategy.

Te$hni$al A#"e$t

-his shows the operational procedure, the pro!ect location and other

technical factors necessary in the business operation.

,ia)ility

It is the uality or state of being viable or the ability to live, grow and

develop of a certain product or service.

RESEARCH DESIGN

-his study used the descriptive survey method. In this method

respondents answer uestions administered through interviews or proponents;

made uestionnaires. #fter participants answer the uestions, researchers

describe the responses given. -he researcher also poses a series of uestions to

willing participants< summarises their responses with percentages, freuency

counts, or more sophisticated statistical indees< and then draws inferences

about a particular population from the responses of the sample. In order for the


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survey to be both reliable and valid it is important that the uestions are

constructed properly. =uestions should be written so they are clear and easy to

comprehend.

-he survey was conducted in different universities and government

agencies within metro %ebu, namely, >niversity of *an ?ose;@ecoletos

)>*?;@+, >niversity of *an %arlos )>*%+, >niversity of the Aisayas )>A+,

>niversity of %ebu )>%+, "ureau of Internal @evenue )"I@+ North and

*ecurities and 9change %ommission )*9%+ 8 %ebu 9tension Bffice

located at A.@ama *t. %ebu %ity. -hese schools and establishments were

selected based on random selection by the proponents regarding their

si$e and student population. *ince their schools adopt a strict

confidentiality policy, the proponents asked assistance from their friends,

relatives, who were studentsCprofessors in the selected schools, in

conducting the survey. -hey were asked to facilitate in distributing

uestionnaires to their classmates and different offices within their school

premises.

-he target respondents were at least 5D students and at least 0D offices

for universities and at least 0 employee for government agencies. -he

proponents found these samples sufficient to get a representation of the

total number of population. -he proponents used purposive sampling

method in determining the respondents. 'urposive sampling method is a

non;probability method of sampling where the proponents are selected by

the researcher sub!ectively. Non;probability approaches are more suitable


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for in;depth ualitative research in which the focus is often to understand

comple social phenomena. -he researcher attempts to obtain a sample

that appears to himCher to be a representative of the population and will

usually try to ensure that the range from one etreme to the other is

included. -his if the most common approach in market surveys.


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CHAPTER II

MANAGEMENT ASPECT

In every industry and in all organi$ations, group action and !oint efforts

have become necessary. 4ike brain does in the human body, management

performs the same role in an organi$ation. Management creates teamwork and

coordination among speciali$ed efforts in order to achieve the organi$ational

ob!ective and success in the industry. -hus, management provides leadership,

motivation to individuals and human satisfaction.

Management is the act of coordinating the efforts of people to accomplish

desired goals and ob!ectives using available resources efficiently and effectively.

It comprises planning, organi$ing, staffing, leading or directing, and controlling an

organi$ation.

-his chapter includes the necessary management activities in order to

achieve the set ob!ectives.

MANAGEMENT DURING THE PRE+OPERATING PERIOD

# business can only start its normal operation if the intial capital needed to

finance the needed ependitures is already available. -he epenses incurred

during the pre;operating period include the accomplishments of the permits and

licenses and other legal reuirements needed, recruitment and hiring of human

resources and the acuisition of raw materials, supplies and euipments.


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PRO-ECT TIME TABLE

# pro!ect timetable was provided to have a view of the different activities

and its corresponding period of competition. -he activities to be done, the period

of completion, as well as the importance of each undertaking must be identified

carefully to promote the effectiveness of the implementation of the pro!ect.

It is epected that a period of twenty one )10+ weeks will have to lapse

before the normal course of operation will commence. # Eantt chart )fig. 0+ is

shown net page to facilitate a better understanding of the pre;operating

activities. -he activities are shown in its corresponding time to accomplish. -he

discussion of each of these activities are discussed on the succeeding

paragraphs.

Gene!al P!o.e$t Plannin&

'rior to the eistence of a business, a comprehensive study in evaluation

of the over;all plan of activities must first undertaken in order to determine

whether the proposed business is viable. -his phase would take four )3+ weeks.

Se$u!in& fund#

#fter planning, obtaining source of funds is necessary for the reali$ation of

the proposed pro!ect. It involves the gathering of funds needed for the operation

of the business. -his activity depends on the capacity of the prospective

implementer to finance the pro!ect. In this case, the funds are secured from the


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personal savings of the implementer and also obtained borrowing from a bank or

any financial institution. -his activity will take four )3+ weeks.

Sitin& of Lo$ation

-he proponents will try to search for the best location to put the business

in operation. In choosing the best location there are things to be considered, first

is the locations setting and area, second it is near to the supplier of raw

materials, lastly is the low;cost of rental. -he proponents will try to evaluate the

selected location that best suit in the set ob!ectives. -his activity will take three

)2+ weeks.

Se$u!in& Pe!'it# and Li$en#e#

-he business should comply with the statutory reuirements set by the

government in order to make its eistence legal. "usinesses are reuired to

secure permits and licenses and all other necessary documents that must be

filed at the appropriate agencies. -his will take si )6+ weeks.

Sele$tion and Hi!in& of E'"loyee#

-he proposed pro!ect needs five )5+ production workers, one )0+ security

guard, one )0+ secretary, one )0+ delivery driver, )0+ bookkeeper, )0+ cashier and

two )1+ maintenance workers. @ecruitment and screening will take two )1+

weeks.

A$/ui#ition of P!odu$tion E/ui"'ent#


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-he acuisition of production euipments, supplies, and furniture and

fitures will be completed together and may take for two )1+ weeks.

Site P!e"a!ation and In#talllation of E/ui"'ent#

It would be appropriate for the site that the areas within are well;utili$ed

and properly organi$ed for an efficient and productive workplace. -his also

promotes uick response and satisfaction towards the customers. It includes

proper ventilations, eits, and right of way. It will take si )6+ weeks to prepare.

No!'al O"e!ation

#fter all the site preparation, installation of production euipments and

availability of manpower, the business can now start its normal operation. (uring

the normal operation, the acuisition of the needed raw materials takes place

since alugbati berries are perishable.


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Fi&u!e 01 Gantt Cha!t

#ctivities

N>M"9@ B MBN-F*

0 1 2 3 5 6

0 1 2 3 0 1 2 3 0 1 2 3 0 1 2 3 0 1 2 3 0 1 2 3

Eeneral 'ro!ect'lanning

*ecuring unds

*iting of 4ocation

*ecuring 'ermits and4icences

*election and Firing of9mployees

#cuisition of'roduction 9uipments *ite 'reparation and

Installation of9uipments

Normal Bperation


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MANAGEMENT DURING THE OPERATING PERIOD

It is during this period that the business organi$ation starts its normal

operations. -he conduct and implementation of activities planned during the

general pro!ect planning must also be properly observed.

Fo!' of Bu#ine## O!&ani2ation

-he form of business organi$ation advisable for the proposed pro!ect is

the sole proprietorship. -his kind of business organi$ation has a single owner

called the proprietor who generally is also the manager. -he owner )proprietor+

shoulders the responsibilities in making all the decisions in running the business.

-hus, all business profits accrue to him alone. Fe also absorbs all the losses and

is solely responsible for all the debts of the business.

rom the accounting viewpoint, the sole proprietorship is distinct from its

proprietor. -hus, the accounting records of the sole proprietorship do not include

the proprietors personal financial records.

O!&ani2ational St!u$tu!e

*ince organi$ing is a necessary function of management, it is important to

identify activities needed to accomplish the business goal, subdivide these

activities into meaningful units and assign authority and responsibility to people.

igure 1 illustrates the organi$ational chart of the proposed pro!ect.


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Fi&u!e 31 O!&ani2ational St!u$tu!e

-o) S"e$ifi$ation# and Re#"on#i)ilitie#

?ob specification is a written eplanation of the knowledge, skills, abilities,

traits and other characteristics of an employee necessary for the effective

performance on a given !ob. It specifies the responsibilities and duties of each

worker in the operation of the business. Moreover, these are all necessary to

have a proper assignment of tasks and to avoid conflicts. -he following are the

persons needed for the operation of the business.

Manager

-he owner is the overall manager of the activities entered into by

the business in achieving its ob!ectives. Fe is the one who plans,

organi$es and controls the flow of the business. Fe is also responsible for

SECRETAR

456 PRODUCTION

7OR8ERS

436 MAINTENANCE

7OR8ERS

SECURIT GUARDDELI,ER

DRI,ER

MANAGER

BOO88EEPER CASHIER


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the ma!or transactions entered into by the business. Moreover, he

implements the rules and guidelines that must be adhered with all the

employees. 4ikewise, he has the final say in every decision that involves

the carrying on of the business.

"ookkeeper

-he bookkeeper compiles reports to show statistics such as cash

receipts and ependitures, accounts payable and receivable, profit and

loss, and other items pertinent to operation of business. Fe also verifies,

allocates, and post details of business transactions to subsidiary accounts

in !ournals or computer files from documents such as sales slips, invoices,

receips, check stubs, and computer printouts. Fe will also be summari$ing

details in separate ledgers or computer files and transfers data to general

ledger. Fe also reconciles different accounts and prepare accounting

reports are reuested. 4ikewise, Fe will be the one to prepare the payroll,

*** remittances, other employee benefits reuirements and compliance

of ta reuirements.

*ecretary

'rovide personal administrative support to management and the

company through conducting and organi$ing administrative duties and

activities including receiving and handling information. Fe also performs

routine clerical functions such as scheduling appointments, organi$ing and

maintaining paper and electronic files, or providing information to callers.


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Fe will also takes note and distributes minutes of meetings, implements

and maintain office systems, maintain schedules and calendars, arrange

and confirm appointments, organi$e internal and eternal events, handle

incoming mail and other material, set up and maintain filing systems,

collate information, communicate verbally and in writing to answer

inuiries and provide information, and coordinates the flow of information

both internally and eternally.

%ashier

-he cashier will take charge in answering customers uestions,

and provide information on procedures or policies. Fe also reviews and

recheck the items that will released from the storage for delivery. Fe shall

be responsible in receiving payment such as cash, check, credit cards,

vouchers, or automatic debits, computing and recording totals of

transactions, counting money in cash drawer, issuing receipts, refunds,

credits, or change due to customers, processing returns and echanges,

and paying company bills by cash, vouchers, or checks.

'roduction &orkers

-he production workers are responsible for operating, cleaning and

maintaing different production euipments. or the proposed study two )1+

workers assigned in processing department. -hey are responsible in

making the ink. -hey inspects product to ensure high uality. urthermore,


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the remaining three )2+ workers are in charge in the final packaging. -hey

also take charge in the proper storage of the inks to keep its uality.

(elivery (river

-he delivery driver will be responsible for loading, preparing,

cleaning and operating a vehicle for delivery duties. Fe will transport the

finished products to different distributors and customers. Fe will ensure

customers satisfaction by delivering complete, accurate and on time. -he

driver will represent the company in a highly professional, safe and cost;

effective manner that complies with rules and other applicable regulations.

*ometimes he need to receive payments from customers once he deliver

the products.

*ecurity Euard

-he security guard will patrol the premises to prevent and detect

signs of intrusion and ensure security of doors, windows, and gates. Fe

also answers alarms, investigate disturbances, monitor and authori$e

entrance and departure of employees, visitors and other persons to guard

against theft and maintain security of premises. Fe will also write reports

of daily activities and irregularities, such as euipment or property

damage, theft, presence of unauthori$ed persons or unusual occurences.


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-o) 9ualifi$ation#

-hese state the necessary ualities that a prospective worker must

possess as specified below/

"ookkeeper

Must be a graduate of "* #ccountancy or Management #ccounting

Must have knowledge of bookkeeping practices and principles

&ith good interpersonal characteristics

Butstanding oral and written communication skills are needed for

effective communication

Keen on details and efficient in making decisions

Must be responsible, honest and hardworking

Must be knowledgeable in M* &ord, 9cel and spreadsheets

resh graduate and 9ntry level applicants are encouraged to apply

'referrably living in the vicinity of %arcar %ity

%an work with less supervision

*ecretary

Must be a college graduate.


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Fas knowledge and eperience of relevant software applications ;

spreadsheets, word processing, and database management

Fas knowledge of business principles

'roficient in spelling, punctuation, grammar and other 9nglish

language skills

'roven eperience of producing correspondence and documents

'roven eperience in information and communication management

@euired typing speed

Eood in verbal and communication skills

%an plan, organi$e and manage time properly

Must have ethics of confidentiality, reliability and initiative in doing

the !ob

Must have stress tolerance attitude

%ashier

Must be a graduate of any 1 or 3 year business course.

Must have at least eperience working as a store or boutiue

cashier.

Must have knowledge in customers service.


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Knowledge in basic Mathematics.

Must have good analytical skills.

Eood communication skills and knowledge in speaking 9nglish.

Must be highly motivated and must be keen to details.

Must be trustworthy.

Must have pleasing personality.

Must have the ability to read, count, and write to accurately

complete all documentation.

#bility to communicate with associates and customers.

'roduction &orkers

Must possess at least a Vocational Diploma / Short Course

%ertificate, or "achelorGsC%ollege (egree

Fas good practical skills

Must have the ability to work uickly and methodically

Fas good team;working skills


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Fas the ability to concentrate while doing repetitive tasks

Fas the ability to follow instructions correctly

Fas an awareness on health and safety

&illing to work fleibly

(elivery (river

Must be at least a Figh *chool graduate.

Fas a minimum eperience of 1 years in similar position

(elivers superior customer service

#ble to read a map and accurately plan a route

Fas accuracy and attention to detail

Fas professional character

#ble to handle difficult customers with diplomacy and tact

%apable of following written instructions and documented

procedures

Fas an effective listening, verbal and written communication skills

'ass a drug screen and background check

Must have a valid drivers license and clean driving record


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*ecurity Euard

Must possess at least Figh *chool (iploma.

Fas at least one )0+ year of eperience as a security guard or

police officer.

Fas the ability to providing uality customer service.

#bility to handle typical and crisis situations efficiently and

effectively.

Fas knowledge in security techniues and procedures.

Neat, friendly, has professional appearance and character.

Fas ability to prepare clear and accurate reports and be able to

speak and write effectively.

Must have a negative report on pre;employment drug screen.

%an maintain satisfactory attendance and punctuality standard.

%an work under stressful conditions.

&ork cooperatively, courteously, yet firmly with all segments of the

general public.


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Fas the ability to establish and manintan effective working

relationships with other employees, %ommunity Bfficials and

general public.

Re$!uit'ent P!o&!a'

@ecruitment is the process of hiring new employees and attracting the

appropriate number of ualified individuals to apply for vacant positions in the

organi$ation. -hus, a recruitment program is needed in selecting the best

persons suited for the !ob. -he future implementerCowner will be the one who will

recruit and hire the ualified individuals needed in the proposed pro!ect. -he

applicants however, must submit the following reuirements to the management

as part of the screening process.

"ookkeeper, *ecretary and %ashier

#pplication 4etter and %urriculum vitae

-ranscript of @ecords )-B@+

"irth %ertificate

N"I and 'olice %learance

'roduction &orkers

#pplication 4etter

Aocational (iploma or -ranscript of @ecords )-B@+ if college level

"irth %ertificate



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(elivery (river

#pplication 4etter

'rofessional (rivers 4icense


*ecurity Euard

*ecurity guard is sourced out through an agency, but he is reuired

to submit the following/

*ecurity 4icense


Mana&e'ent Poli$ie#

Management policies facilitate the operations of the business in the most

effective and efficient way. -hese serve as a guide to the employees on what are

the dos and donts while working. -he following policies and disciplines will be

established in the workplace/

0. #ll employees and workers must report promptly.

1. -hey must give prior notification before an absence is made.

2. (uring working hours, no one is not allowed to sleep.

3. &orkers must clean the euipments and production area after work.

5. 9mployees and workers should not carry deadly weapons such as

firearms, eplosives and inflammable materials within the farm

premises.


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6. (rinking of alcoholic beverages during working hours and within the

company premises is strictly prohibited.

7. %ompany properties and euipment must be used for companys

purposes only.

H. 'roper conduct during working hours must be observed.

Di#$i"lina!y A$tion#:San$tion#

In every business organi$ation, there are sets of disciplinary actions

implemented to ensure the strict compliance of the management policies and to

promote discipline among employees. -he management sets the following

sanctions for every violation committed as shown in the table net page.

Ta)le 0

Ta)le of Offen#e# and Co!!e#"ondin& San$tion#

Bffenses reuency of Bffenses and %orresponding *anctions

irst *econd -hird ourth

Bffenses #gainst *tandard Bperating 'rocedure

>nauthori$ed use ofeuipment for personaluse &arning @eprimand

2 dayssuspension -ermination

%areless, improper orincorrect use of toolsand euipment &arning @eprimand


&iilful or deliberate

destruction ofcompanys property -ermination

Bffenses #gainst Moral Aalues and Eood %onduct

Insubordination i.e.,disobedience regardingwork assignment @eprimand

0 weeksuspension -ermination

*tealing of materials,products and other

-ermination


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company properties

(rinking alcoholicbeverages during dutyhours

1 weekssuspension -ermination

>nauthori$ed position

of deadly weapons asdefined by law

2 weekssuspension -ermination

>se of illegal drugs,irrespective of time andplace

0 monthsuspension -ermination

Bffenses #gainst 'roductivity

Fabitual tardiness)thrice a week+ &arning @eprimand

0 daysuspension -ermination

Fabitual #bsenteeism)3 absences in a month+ &arning @eprimand


4eaving work

assignment withoutpermission &arning @eprimand

0 daysuspension -ermination

4oitering during dutyhours &arning @eprimand


Co'"en#ation

%ompensation refers to all forms of economic remuneration not only

salaries or wages but also other monetary benefits received by the workers.

&orkers performances make the difference between the success and failure of a

business in the long run. It is important that the services rendered by the workers

in a business organi$ation must be well 8 compensated.

Ta)le 3

Co'"en#ation

'osition of &orkersNo. of&orkers

@ateperday

No. of workingdays

-otal*alary

Manager 0 6DD 1D 01,DDD

"ookkeeper 0 3DD 1D H,DDD

*ecretary 0 25D 1D 7,DDD


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%ashier 0 22D 1D 6,6DD

'roduction workers 5 217 1D 21,7DD

(elivery driver 0 217 1D 6,53D

Maintenance workers 1 217 1D 02,DHD

-otal %ompensation per month H5,1D

-otal %ompensation in a year 0,D20,D3D

-he total compensation for the whole year would be 0,D20,D3D.

7o!(in& S$hedule

9very business organi$ation must provide proper working schedule that

will serve as guidelines of the activities that should be performed by each worker.

or this study, the bookkeeper, cashier, secretary, production workers, and

delivery driver are to work from Monday to riday at H/DD to 5/DD pm. 4unch

break will be at 01/DD to 0/DD pm.

E'"loyee Benefit#

"enefits refers to allowances, pension, etc., to which a person may be

entitled under private or state welfare arrangements. -hese are compensation

other than direct wages or incentive pay. -he benefits the to be provided by the

company should attract, motivate and maintain the loyalty of the employees. -he

employee benefits are either reuired for by law or voluntarily provided by the

company. -he following benefits are to be en!oyed by the employees/

*ocial *ecurity *ystem

-his is a government program that provides financial support to the

elderly or disabled. Bver the course of ones life, a certain percentage of


30/58

ones income will be paid to the government in the form of social security

taes. #fter you retire or become disabled, the government sends you

monthly payments based on how much you paid in social security taes.

02th Month 'ay

-his benefit is reuired by law )'residential (ecree No. H50,

asamended+. #ll classes of employees, regardless of their status who

have worked for at least one )0+ month within a calendar year are entitled

to receive 02th month pay. 'rior to 0H6, only those who receive a

monthly salary of at least 0,DDD are entitled to receive 02th month

pay, but this cap was removed under Memorandum Brder no. 1H issued

by former 'resident %ora$on #uino.

-his is a form of monetary assistance euivalent to the monthly

basic compensation received by an employee, computed pro;rata

according to the number of months within a year that an employee has

rendered service to an employer, )basic monthly pay C01 number of

months actually worked+. -his is mandatory and shall be paid on or before

(ecember 13.

'FI4F9#4-F

-his is a premier goverment corporation that ensures sustainable,

affordable and progressive social health insurance which endeavors to

influence the delivery of accessible uality health care for all ilipinos. It is

a ilipino Eovernment Bwned and %ontrolled %orporation )EB%%+ that


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provides the fast and affordable Fealth Insurance so that every registered

employee in the country has access to a long and lasting healthy lifestyle.

CHAPTER III

MAR8ETING ASPECT

or a business to survive they must continuously generate income. In

order to achieve such goal they must ensure the production of enough uantity of

their product for the market. #n introduction of marketing is therefore necessary.

Marketing is a set of human activities directed at facilitating and

consummating echanges. It is about meeting the needs and wants of the

customers. It also stresses about understanding customers and finding ways to

provide products or services which customers demand. -hrough customers

satisfaction the company is assured of continuous and permanent patronage.


32/58

Fowever, it could only be reali$ed by means of conducting a set of coordinated

activities.

#daptation of what is called strategic marketing is one of those set of

activities. It is the way a firm effectively differentiates itself from its competitors by

capitali$ing on its current and potential strengths to provide consistently better

value to its customer to its. It aims to maimi$e a firms positive differentiation

over competitors on the eyes of its target market.

Ta!&et 'a!(et

-he success of an organi$ations marketing plan will greatly depend on its

ability to find and reach groups of people, having needs and wants, to satisfy

financial capacity and willingness to buy.

&ith this, there is a need to know and understand the target market of a

business organi$ation for an effective marketing.

-arget market is a group of customers that the business has decided to

aim its marketing efforts and ultimately its merchandise towards. or the

proposed pro!ect, the target market includes students, universities and

government agencies within Metro %ebu.

Po"ulation and Re#"ondent#

-ype of @espondent

Individualsn J

27,D33

0 L 27,D33).D51+

n J 27,D33


33/58

0 L 27,D33).DD15+

n J27,D33

)0 L 1.60+

n J 27,D332.60

Individual *ample *i$e ;niversities >Eovernment #gencies 3

-otal @espondent >?3

-he researchers were able to gather the necessary data regarding the

population from %ommission on Figher 9ducation, statistics of enrollment from

the said universities within %ebu %ity. >sing the *lovins formula the researchers

were able to determine the sample si$e which is three hundred ninety si )26+

individuals and selected four )3+ universities and two )1+ government agencies.

-here are a total of four hundred two )3D1+ respondents and all cooperated

during the survey.

7hethe! o! Not the Re#"ondent# U#e In( Refill

Ta)le ;

In( Refill# fo! Ma!(e!#@espondents Yes 'ercentage No 'ercentage TotalIndividuals 122 5 062 30 ;niversities 3 0DD D D >Eovernment #gencies 1 0DD D D 3

12 062 >?3

In( Refill# fo! Sta'" Pad#@espondents Yes 'ercentage No 'ercentage TotalIndividuals 1H 7 26H 2 ;niversities 3 0DD D D >Eovernment #gencies 1 0DD D D 3


34/58

23 26H >?3

-he actual number of respondents who responded to the survey were four

hundred two )3D1+ or 0DD. &e found out that 5 and 7 percent of the

individuals were using ink refills for markers and stamps respectively. #ll the

universities and government agencies were using both ink refills. Mostly,

universities have higher demand for markers ink refills while government

agencies have higher demand for stamp pad ink refills.

The Sou!$e of Re#"ondent#@ Su""ly

-he researchers also found out that almost all the respondents are using

ink refills from international companies like 'ilot 'en, *tabilo, and #rtline. #lmost

all the eisting product is manufactured in foreign countries and imported here in

the 'hilippines.

7hethe! o! Not the Re#"ondent# a!e 7illin& to Pat!oni2e the P!odu$t

Ta)le >

@espondents&ill

'atroni$e&ill not

'atroni$e Total

Individuals 107 2 06 7 3;;

>niversities 3 0DD D D >

Eovernment #gencies 1 0DD D D 3

-otal 3;pon receiving orders from different establishments and school supply retailers,

the seller will inform clients on the time of delivery of the order and its price per

2Dml to the buyer. -he seller will deliver the product to different retailers and

establishments. -he retailers will then distribute these to the ultimate users.

Te!' of Sale


42/58

-he researchers recommend the the term of sale of the proposed product

would be on cash basis. %redit for a term of 2D days is likely to be considered for

school supply retailers and different establishments is likely to be considered but

only when a strong client relationship will already be established.

Mode of Deli%e!y

(elivery is the transfer of goods from one place to another, particularly

from the plantation to the place of distribution. It is where ownership of goods is

transferred. -he cost incurred in delivering the goods from the producer to

retailers will be shouldered by the seller. -he retailers place in selling the product

will be the designated place of distribution. It means that retailers are freight free

and more convenient in obtaining the goods.

P!i$in&

'ricing is the process of determining what a company will receive in

echange for its products. &ith this the company will set the amount of money

reuired in echange of the product being tendered or what we simply call as

price.

-he suggested selling price of ink refills was based on the results of the

survey made by the researchers. #ccording to the respondents, the price of ink

refills is currently at 'hp 75 per 2Dml and an increase of per year was

obtained as shown in -able 0D.


43/58

Ta)le 0?

A%e!a&e In$!ea#e of Sellin& P!i$e

@espondent 9stimated*elling 'ricefor the last 5

years

%urrent*elling 'rice

@ate increasefor 5 years

Increase peryear

Individuals 5D.DD 72 36

9stablishments 37.5D 7D 37

-otal 0H

(ivided by thetotal no. ofrespondents

1

#verageIncrease @ate

Ta)le 00

P!o.e$ted Sellin& P!i$e

Year #nnual *elling'rice

Increase @ate of*elling 'rice per Year

)-able 00+

'ro!ected *elling'rice)'hp+

1D02 7D 76

1D03 76 H1

1D05 H2 0

1D06 0

1D07 0DH

1D0H 0DH 007

-he table shows that the ink refills are to be sold at 'hp 76.DD per 2Dml in

1D00 and will increase in yearly by . -his is computed by multiplying the

selling price )%olumn 1+ by the increase rate of selling price per year. -he

purpose of setting the pro!ected selling price much lower compared to the


44/58

competitor is in order to penetrate the market and attract more buyers since the

proposed product is new in the market.

CHAPTER ,

LEGAL AND TATION ASPECTS

%ompliance of the legal reuirements and procedures set by law is

needed in order for the business organi$ation commence its operations. -his law

is formulated and will be eecuted in order to put everything in order, to regulate

and to have control over the business operations within its !urisdiction.

-his chapter provides the necessary government reuirements needed to

be complied, the corresponding taes for the proposed business and the relevant

procedures in securing the permits and licenses.

LEGAL ASPECT


45/58

Eenerally, for the business to be legal, there are certain reuirements that

are essential for the conduct of business operations that is to be complied with.

#nd a business which operates legally is duly acknowledged by the government.

-he following are the legal reuirements that should be secured and

accomplished for the proposed pro!ect/

@egistration of the business name in the (epartment of -rade and

Industry )(-I+

'rocurement of the business permit

@egistration to the "I@

A1 Re&i#t!ation of Bu#ine## Na'e

-he proposed business is a sole proprietorship wherein the owner is

also the manager or supervisor, and therefore, for this to be legal it must

be duly registered in the (epartment of -rade and Industry )(-I+, and if

implemented, it must be in accordance with the "usiness Names 4aw.

0. #pplicant must be a ilipino citi$en, at least 0H yrs. old.

1. -wo )1+ 1 1 colored I( pictures of applicants taken within one

year )0+ immediately preceding the filing of such application.

2. 'ayment of @egistration ee for 'hp2DD.


46/58

3. ill;up application form and inde card obtained from (-I C only the

owner of the business is authori$ed to sign all forms.

5. Natural;born ilipinos whose names are suggestive of an alien

nationality photocopy of the proof of citi$enship, such as '@% I(,

birth certificate, voters I(, marriage certificate)if married a

foreigner+ and passport by present original copies for comparison.

6. If an is an alien, he must secure/

i. # written appointment of a ilipino @esident #gent

ii. #lien %ertificate of @egistration, if any

iii. #uthority to verify book of accounts or bank certificate of

deposits

iv. #ccomplished (-I orm No. 07 under @.#. No. 7D31

v. 'roof of inward remittance of foreign currently for non;

resident alien and "ank %ertificat of (eposits for resident alien

vi. %opy of Aaluation @eport from the %entral "anks, if

investments include assets other than foreign echange

vii. %learance from other related agencies

7. (ocumentary *tamps of 'hp 05 is needed.


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H. *ecure "usiness Name #pplication orm and Aerification and

#cknowledgement *lip )A#*+ from the (-I . -hen photocopy each

of these blank forms.

B1 P!o$u!e'ent of Bu#ine## Pe!'it

In order for the business to start its operation, permit to operate

must be secured first.

"usiness will regulate upon the issuance of permit in which certain

payment is needed. #nd the following steps must be considered/

0. -he business permit can be obtained from the -reasurers

Bffice located at the %ity Fall. -he billing of payment must be

done/ the owner must pay a business permit ta of D.D5 of the

regulatory fee of the capital invested. -he issuance of business

permit certificate and the releasing of application form must be

followed. 4astly, an inspection must be made by Poning

(epartment for the ?oint Inspection @eport and the ire

(epartment for ire *ecurity %ertificate.

-he following permits must also present before the issuance

of Mayors "usiness 'ermit.

"arangay %learance


48/58

-his is to certify that the business owner is a bona fide

resident of the said barangay and has no any pending case against

him or her. -he owner must secure this clearance from where the

business is located. -he business is located in (apdap 'oblacion

III, %arcar %ity, %ebu, thus it must secure the clearance from its

corresponding barangay.

'olice %learance

-his is needed to certify that the prospective implementer

has no criminal records. -his can be obtained from the 'olice

(epartment of %arcar %ity, %ebu in which the business is located.

-he following reuirements in applying for the clearance are

needed/

"arangay %learance

%edula or @esidence certificate of the applicant

-wo 1 1 picture of the owner

4ease of %ontract


49/58

-his is a written contract or instrument conveying property to

another for a specified period or for a period determinable at the will

of either lessoror lesseeinconsideration of rent or other compensat

ion.

*anitary 'ermit

-his permit can be obtained at the Municipal Fealth %enter

of %arcar %ity. -his permit will serves as a proof of the sanitation

and cleanliness of the proposed business area. -his is necessary

for the continuity of the business where public health and general

welfare at a stake.

1. #n application for the following sections/

i. ***

ii. '#E;I"IE >N(

iii. 'FI4F9#4-F

*** Membership

Bne of the policies of the state is to establish, secure and

develop a good *** benefits suited to the needs of the citi$ens

which will aid them to achieve social !ustice they deserve. -hese

will also provide them with the help and protection against all those

ha$ardous happenings that may occur such as sickness, death,

maternity, disability or other future crisis that they may suffer which
http://dictionary.reference.com/browse/willhttp://dictionary.reference.com/browse/lessorhttp://dictionary.reference.com/browse/lesseehttp://click.reference.com/click/nn1ov4?clksite=dict&clkpage=dic&clkld=0&clkorgn=0&clkord=0&clkmod=1clk&clkitem=compensation&clkdest=http%3A%2F%2Fdictionary.reference.com%2Fbrowse%2Fcompensationhttp://click.reference.com/click/nn1ov4?clksite=dict&clkpage=dic&clkld=0&clkorgn=0&clkord=0&clkmod=1clk&clkitem=compensation&clkdest=http%3A%2F%2Fdictionary.reference.com%2Fbrowse%2Fcompensationhttp://dictionary.reference.com/browse/willhttp://dictionary.reference.com/browse/lessorhttp://dictionary.reference.com/browse/lesseehttp://click.reference.com/click/nn1ov4?clksite=dict&clkpage=dic&clkld=0&clkorgn=0&clkord=0&clkmod=1clk&clkitem=compensation&clkdest=http%3A%2F%2Fdictionary.reference.com%2Fbrowse%2Fcompensationhttp://click.reference.com/click/nn1ov4?clksite=dict&clkpage=dic&clkld=0&clkorgn=0&clkord=0&clkmod=1clk&clkitem=compensation&clkdest=http%3A%2F%2Fdictionary.reference.com%2Fbrowse%2Fcompensation


50/58

results to the loss of income or the loss of financial beneficiaries

itself. #nd to be able to register, the following reuirements are

needed to be accomplished/

a.+ or 9mployers

*ingle 'roprietorship

#n owner of a single proprietorship business should

accomplish and submit *** orms @;0 )9mployers (ata

@ecord+ and @;0# )Initial or subseuent 4ist of 9mployees+.

b.+ or 9mployees

#n employee should accomplish *** orm 9;0

)'ersonal (ata @ecord+ to become a beneficiary and submit it

together with the general reuirements.

Eeneral @euirements/

# first time applicant for *** registration, whether as an

employee, self;employed, non;working spouse, or B& should

submit an *** @egistration orm, a photocopy of his birth or

baptismal certificate or passport. If these documents are not

available, any two of the following documents may be

submitted/

*chool @ecords or Aoters I( %ard

(rivers 4icense


51/58

Marriage %ontract

@ecord of 9mployment

E*I* Members @ecord

%ertificate from the National #rchive

"irthC"aptismal %ertificate of %hildren

#lien %ertificate of @egistration

?oint %ertificate of two disinterested parties attesting

to the correct name andCor fact of birth of the person

concerned

If married, he or she should also submit his marriage

contract upon registration. If having children, he or

she should submit the birth or baptismal certificate of

the child, if legitimate/ proof of filiations showing

acknowledgments of the child, if illegitimate/ or decree

of adoption, if legally adopted.

or authentication of these documents, the original or

certified true copies should be presented to the ***.

'#E;I"IE Membership

Fome (evelopment Mutual und )F(M+ is the other name

of 'ag;ibig Membership. It is a government; controlled 'hilippine

corporation that serves as provident and housing fund pooling


52/58

together the investments of its members. -here are 2 basic benefits

to a member, such as housing loans, short term loan and provident

savings.

Membership to the 'ag;ibig und shall be mandatory for all

employees covered by the security system )***+ who are earning

at least 'hp 3DDD a month.

-he following are the reuirements of employers and its

employees/

-wo copies of accomplished Membership

@egistrationC@emittance orm

*ubmit two copies of Members (ata orm of the

employees

%ertificate of *** coverage and compliance )for the

current year+

(-I @egistration

Mayors 'ermit or "usiness 'ermit

'hilFealth

-he National Fealth Insurance #ct of 05 or @epublic #ct

7H75 created the 'hilippine Fealth Insurance %orporation

)'hilFealth+ which is mandated to provide social health insurance

coverage to all ilipinos. It is an attached agency of the (epartment


53/58

of Fealth and it assumes the responsibility of administering the

former Medicare 'rogram.

#ll government and private sector employees shall be

reuired to register with 'hilFealth to enable and to provide social

health insurance coverage to employees. -he following are the

reuirements for registration/

-wo copies of 9mployer (ata @ecord or 9@0 form

"usiness 'ermit or 4icense to Bperate

(epartment of -rade and Industry )(-I+ @egistration

9mployees must report to 'hilFealth for the ff.

schedule/

; or newly hired employees, report within 2D calendar

days from assumption to office and 9@1 orm must

be used.

; or separated employees, report within 2D calendar

days from separation and use @0.

-he monthly health insurance premium of an employee is

pegged at 1.5 percent of the salary base of range within which their

basic salary belong. Bnly half of the reuired monthly premium is

shouldered by the employee, which is automatically deducted and

withheld from their salary, while the other half is paid for by the

employer.


54/58

'ayment and @eporting 'rocedure/

a+ -he premium shall be remitted to 'hilFealth or at any

accredited collecting bankCagent on or before the 0D thday

of the month following the month being paid for. >se the

M9;5 orm.

b+ -o facilitate posting of premium payments, employers shall

be reuired to report their payments to 'hilFealth on a

monthly basis using the revised @emittance @eport orm

)@;0+. *ubmission of monthly @;0 must be made on or

before the 05th of the month following the application

month.

2. -he application must be verified by the %ity -reasurer.

3. 'rinting of Mayors "usiness 'ermit.

C1 Re&i#t!ation ith BIR

"efore a business commences, it must first registered in the

"ureau of Internal @evenue. -he following reuirements are needed to

register a single proprietorship in "I@/

i. (-I %ertificate

ii. Mayors 'ermit

iii. *ketch of "usiness 4ocation

iv. 4ease of %ontract

v. "irth %ertificate of -apayer

vi. "irth %ertificate of =ualified (ependents


55/58

vii. Marriage %ertificate

viii. @egistration ee 8 'hp 5D.DD )payment orm D6D5 in 2 copies+

i. *eminar

D1 Boo(# of A$$ount

i. *ales ?ournal

ii. 'urchase ?ournal

iii. *ubsidiary 'urchase ?ournal

iv. *ubsidiary *ales ?ournal

v. Eeneral ?ournal

vi. Eeneral 4edger

vii. %ash (isbursements

viii. %ash @eceipts ?ournal

TAATION ASPECT

-a is any contribution imposed by the government upon individuals for

the use and service of the state. -his is the governments source of fund in

carrying out their obligations and functions. -hus, every nation relies on taes in

continuing its business. -aation is the power of the state to raise revenue in

order to defray the necessary epenses of the government. -hrough this inherent

power, the government is given the right to impose and collect taes from

citi$ens and properties under its !urisdiction. "y imposing taes, government can

provide services beneficial to businesses. It is a means of achieving economic

growth and development. In this process, the ultimate beneficiaries are both the

government and citi$ens.


56/58

Bu#ine## Ta*

-he proposed pro!ect is a A#- taable business. -his means that it will be

sub!ect to 01 9;A#- as ta to the government or charge 01 9;A#- to its final

product. -his is because of the amended @evenue @egulation no. 06;1D00 that if

the business annual gross receipts eceed 0,0,5DD, the business is sub!ect to

01 A#- on the sale of its final product.

-he reuirements for the A#- 8 eempt registration are the following/

"I@ orm No. 0D0, #pplication for @egistration

Q11R colored photo with white background

Marriage contract, if married

Mayors 'ermit

(-I %ertificate

*ketch of business location

-a declaration of %ontract of 4ease

4ong folder

@egistration ee of 'hp 5DD.DD

In$o'e Ta*e#


57/58

Income ta is the ta on the net income or the entire income reali$ed in

one taable year, levied upon corporate or individual income in ecess of

specified amounts, net of certain deductions and eemptions provided by law.

*ince the proposed pro!ect will be operated under a single proprietorship,

the owner will be classified as an individual tapayer. -he basic personal

eemption has been increased to 'hp 5D,DDD and has been made uniform for

single, head of the family and married. urthermore, the additional eemption

increases to 'hp 15,DDD for each ualified dependent not eceeding four )3+. -he

ta rate filed and paid in time for the first 2 uarters and annually on or before

#pril 05 of each taable year. or uarterly income ta return, it must accomplish

a "I@ orm No. 07D0 = and 07D0 for annual income ta return.

Real P!o"e!ty Ta*

@eal property ta is a direct ta on ownership of lands and buildings or

other improvements not specially eempted and is payable regardless of whether

the property is used or not. -he real property ta imposed in the 'hilippines is an

annual ad valoremta, because they are based on the value of the property.

*ince the proposed pro!ect did not intend to acuire any real properties, then this

pro!ect is not sub!ect to pay real property taes.

7ithholdin& Ta*

-he withholding ta on compensation income is a method of collecting the

income ta at a source upon receipt of the income. -his amount of ta is

deducted monthly from the salary of the employees. -he employer is constituted


58/58

as the withholding agent. -he payment should be done on or before the 0D thday

of the following month at any "I@ #uthori$ed #gent "ank. #ccording to @# 5D3

ruling, QNo withholding ta is charge to the minimum wage earners.R -hus, only

those employees earning above minimum are sub!ect to withholding ta.

Pe!$enta&e Ta*e#

-he 2 percentage ta is not applicable in this proposed pro!ect. *ince

this pro!ect is already sub!ect to 01 A#-, the same cannot be sub!ect to other

percentage taes. -his is in accordance with the rule that no transaction shall be

sub!ect to the same taes in the same taing authority or also called as direct

double taation.

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