sudhir pfr

8/23/2019 Sudhir PFR

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Delight Internet Caf

Jitendra Kumar

Ashish Tantubay

Sudhir Kumar

Address: sector-62 Noida, near Labour chowkinstitutional area.


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INTRODUCTIONObjective of the study To earn profit at fewer investments.

To satisfy our customers providing best quality service at effective price.

Providing the service at low cost by providing the best quality at affordableprice.

To know a fair return on the capital invested by the owner .

Project rationale Internet represents so much potential .

The demand for efficient Internet infrastructure is growing rapidly.

Entering into web related business activities, like web site creation, softwaredevelopment.

Internet demographic becomes more mainstream .

Proposed capacity The project is based on 21 computers.

Total project cost The total cost of the project is approximately Rs.1.110 million.


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Name of the business

The delight internet caf located in sector-62 Noida near labour chowk,

institutional area.

Proposed Location

Proximity to the majority of people living are from middle income group.

Proximity to Private hostels setup in different areas.

Low cost rent Rs. 4000/- per Marla.

High visibility.

Services Proposed internet caf will provide full access to the resources of internet

and other online services, printing, composing, scanning, fax.

unique services of Video/Audio Chat.


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TECHNICAL FEASIBILITY

Location of the project

Unique Services

Quality of Service

Equipment Requirement

(1) Furniture & fixtures

Land & building requirement

Human resource management

Utilities requirement


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MARKET FEASIBILITY

TARGET CUSTOMERS

Students

Business people

Middle Income Groups

Private Hostels

MARKET NEED The popularity of internet continues to grow at an exponential rate.

Easy and affordable access is quickly becoming a necessity of life.

Public wants access to the methods of communication and volumes ofinformation now available on the internet.

MARKET TRENDS More than 90 percent of visitors of the cafes and clubs are Youngsters.

sole objective to get to these is to get enjoyment.


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Continuous

MARKETING

Marketing will play an important role in success of the project.

product differentiation.

A special service of video chat facility is going to be offered by the

proposed project. To build an image of a reliable and excellent Internet service, extensive

promotion in the locality near the project will be done by use of print media

and billboards.


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FINANCIAL PROJECTION

CAPITAL OUTLAY

Fixed capital 918200.

The total working capital of the company is Rs.192000.

the total cost of project works out to Rs.1110200.

Means of finance

Promoters capital Rs.1110200 which is equally divided in

partnership i.e. 370067*3.


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Key Assumption

FINANCIAL ASSUMPTIONS: under this the project life is for 5years, equity is 100% & discount rate is 20%.

PRODUCTION ASSUMPTIONS:

No. of computers 21

Total capacity per day(hours) 240

Maximum capacity per year 86400

Capacity utilization (year 1)% 70%

Capacity utilization (year 1) hours 60480

Capacity growth rate per year % 5%

Maximum capacity composing/pages/day 100 First year capacity 20%

Increase in composing capacity 5%

First year capacity web developing/web/year 5


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Continuous

OPERATING ASSUMPTIONS:

Shift per day 1

Hours operational per shift 12

Days operational per month 30

Days operational per year 360

Pre-operational period 1

ECONOMY RELATED ASSUMPTIONS:

Electricity charges per month/ year 25212

Electricity growth rate 10% Wages growth rate 10%

Equipment maintenance growth rate 2%


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DEPRECIATION EXPENSE ASSUMPTIONS

Computer equipment 20%

Furniture-fixtures 20%

Pre-operation 20%

EXPENSE ASSUMPTIONS Internet connection charges year 1 300000

Connection type 512kbps

Connection charges per month 25000

Composing charges(% of composing sales) 50%

Web development charges(% of web sales) 50% Internet connection charges(decrease rate) 1%

Equipment maintenance(% of Internet sales) 2%

Prepaid building rate(months) 12

Rent rate per Marla 4000

sq. ft in per Marla 225

Rent growth rate 10%

Insurance rate(% of net fixed assets) 2%

Marketing & selling expense(% of sales) 2%

Taxes 20%

Printing expense(% of printing price) 50%


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REVENUE ASSUMPTIONS

Video/audio chat price/hour 2

Internet plain price/hour 20

Plain Internet usage 60%

Video/audio 40% Internet sales price decrease rate 0%

Printing revenue(% of Internet sales) 10%

Fax revenue(% of Internet sales) 3%

Composing price 20

Web price 10000


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FINANCIAL ANALYSIS

Income statement:

Year 2012 2013 2014 2015 2016

Total revenue 1647533 1790928 1984323 2147718 2311114

Total COGS 722651 727942 785502 828091 870708

Gross Profit 924882 1062986 1198821 1219627 1440406

Operating expenses 354251 370552 388293 407618 420684

Operating profit 570631 692434 810528 912009 1011722

Non-operating profit 254171 273493 290986 310033 330757

PBT 316460 418941 519542 601976 680965

PAT 253168 335153 415633 481580 544772


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Balance sheet:

Year 2012 2013 2014 2015 2016

Total current asset 62982 1122560 1691946 2322665 3011216

Net fixed asset 712160 534120 356080 178040 0

Total asset 1364242 1673480 2059226 2503605 3011216

Total liabilities 444954 419040 389151 354647 314389

Total equity 919288 1254440 1670075 2151657 2696427

Total liabilities & asset 1364242 1673480 2059226 2503605 3011216


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Cash flow:

Year 2012 2013 2014 2015 2016

Total operating activities 419004 522353 602836 668783 731971

Total financing activities -18326 -47034 -53121 -60059 -67969

Total investing activities - - - - -

Net cash 400678 457319 549715 608724 664002

Cash balance brought

down

- 400678 875997 1425712 2034436

Cash carried forward 400678 875997 1425712 2034436 2698437


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Ratio analysis

Gross profit ratio

Net profit ratio

Asset turnover ratio

Return on owners equity ratio

Cash ratio

Return on investment ratio


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CONCLUSION After making this report we have faced real environment stress

in real business.

This research work has enabled us to gather a lot of

information about the cafe business.

Projected Balance Sheet, Projected Income, Projected Cash

Flow and other major financial ratio calculation it can be said

that the project is very much feasible, having good

profitability.

The financial and economic feasibility of the project is well

established on the basis of estimates and projections.

All the assumptions and basis of estimation are on the

principle of conservatism and prudence.

it cane concluded that the business has a high potential.


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