CYBER CAFE

SERVICE CAPACITY (Value)

: Rs. 12,50,000/-

MONTH AND YEAR

OF PREPARATION

: July, 2014

PREPARED BY

: Sh. Sanjeev Kumar

Assistant Director (Electrical)

1. INTRODUCTION
Today, the computer and IT have changed the complete global scenario.
Computers are widely used in every sphere of life and have wide ranging
commercial use coupled with internet such as e-mail, browsing, web browsing, ecommerce, e-governance etc. An internet cafe or cyber cafe is a place which provides
internet access to the public, usually for a fee. This project profile is proposed for
information technology related services such as Internet & Desk Top Publishing
(DTP), Scanning Work, Printing work, etc.

2. MARKET POTENTIAL
The IT services sector, being the fastest growing has tremendous potential for
growth. India is one of the leading nations in e-commerce and other IT enabled
services. The younger generation is very much inclined towards computer and IT.
These factors have created a need for Cyber cafes servicing center with IT enabled
services. The Plant and machinery for the project is available in local market.

3. BASIS AND PRESUMPTIONS

i.

The basis for calculation of Production Capacity has been taken on Single
Shift basis on 75% efficiency.

ii.

The Salaries & Wages, Utilities, Cost of Land and Rents etc are based on
prevailing rates in 2014-15 in and around Delhi. These cost factors are likely
to vary with time and location.

iii.

Interest of term loan and working capital loan has been taken at the rate of
13% on an average prevailing in 2014-15. This rate may vary depending upon
the policy of the financial Institution/agencies from time to time.

iv.

The cost of Machinery and Equipment refer to a particular make/model and

the prices are approximate prevailing in 2014-15.

v.

The breakeven point percentage indicated is on full capacity utilization.

vi.

The project preparation cost etc., whenever required could be considered

under pre-operative expenses.
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Cyber Cafe

4. IMPLEMENTATION SCHEDULE
The major activities in the implementation of the project have been listed and
the average time for implementation of the project is estimated at 6 months:
i. Preparation of Project Report
: 1 Month
ii.

Registration & Other Formalities

: 1 Month

iii.

Sanction of Loan by Financial Institutions

: 2 Months

iv.

Recruitment of Technical Personnel etc.

: 2 Months

Note: Many of the above activities shall be initiated concurrently

5. TECHNICAL ASPECTS
5.1. Service Capacity
Internet Browsing
Desk Top Publishing (DTP),
Scanning Work, Printing Work etc.

Rs. 10,00,00
Rs. 2,50,00

Total

5.2. Motive Power

Rs. 12,50,000

5 kVA

6. FINANCIAL ASPECT
6.1. Fixed Capital
Land & Building:
Land & Building on Rent
Covered area

Rs. 8,000/per month

500 Sq. Ft.

6.1.1. Machinery and Equipments

S.No. Description
1.

2.
3.
4.
5.
6.

Computer System (Core 2 duo

processor with Network card 2 GHz
with dual core with 4 MB Cache, HDD
160 GB,1 GB RAM, color monitor15,
key board, optical mouse, speakers etc.)
Proxy server with Pentium-IV,
2.8 GHz, HDD 80 GB & 2 GB RAM
UPS (500 VA/600VA)
Modem- ISDN
4 in 1 Laser Printer with scanner, copier
and Fax
HUB LAN & other networking
component

Ind/
Imp
Ind.

15

Rate
(Rs.)
25,000

Value
(Rs.)
3,75,000

Ind.

35,000

35,000

Ind.
Ind.
Ind.

16
1
1

2,500
1,000
10,000

40,000
1,000
10,000

LS

5,000

Qty.

Total
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4,66,000

Cyber Cafe

6.1.2. Other Fixed Assets

S.No. Description
Ind/Imp
1.
Electrification Charges @ 10% of Cost of
Machinery and Equipment.
2.
Office Equipment , Furniture &
Working tables etc
3.
Jigs, Tools, Fixtures, etc
Ind
4.
Pre-Operatives Expenses
Ind
Total
-

Total Fixed Capital

Qty
-

Value (Rs.)
46,600
50,000

LS
LS
-

10,000
10,000
1,16,600

Rs. 5,82,600 /-

6.2. Working Capital (per month)

6.2.1. Personnel
S. No.
1

Designation
Manager/Service Engineer

No
01

DTP Operator/ Counselor

01

Salary (Rs.)
10,000

Total (Rs.)
10,000

8,500
Total
Perquisites @ 10% of salary

8,500
18,500
1,850

Total

20,350

6.2.2. Raw Materials including Packaging Materials

S.No. Description
1.

Computer Stationary like paper,

ribbon, floppy, CD, cartridge etc.
Internet Connection

2.

Ind

Value per
unit (Rs)
LS

Ind

LS

Ind/Imp

Total

Rs. 5,000

6.2.4. Other Contingent Expenses

S. No.
1
2
3
4
5
6
7
8

Description
Rent
Postage & Stationery
Telephone/Telex/Fax charges
Repair & Maintenance
Transport and conveyance Charges
Advertisement/Publicity
Insurance and taxes
Miscellaneous Expenses

Value (Rs.)
8,000
500
1,000
2,500
1,000
500
1,000
1,000

Total
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20,000
28,000

6.2.3. Utilities
Power

Total
Value (RS)
8,000

15,500

Cyber Cafe

6.2.5. Total Recurring Expenditure (per month)

Rs. 68,850/-

6.3. Total Capital Investment

Fixed Capital
Working Capital (for 1 month)

Rs. 5,82,600
Rs. 68,850

Total

Rs. 6,51,450/-

7. FINANCIAL ANALYSIS
7.1. Cost of Operation (per annum)
S.No.

Description

Amount (Rs.)

Total Recurring Cost per year

8,26,200

Depreciation on Machinery & Equipment @ 10%

46,600

Depreciation on Office Equipment & Furniture @ 20%

10,000

Depreciation on tools, jigs, fixtures etc. @ 25 %

2,500

Interest on Total Investment @ 13%

84,689

Total

9,69,989

7.2. Turnover (per annum)

Item
Internet Browsing

Qty.
50,000 hrs
(using 15 PCs.)

Desk Top Publishing/Scanning work

/Printing work etc.

Rate (Rs.)
20/hr.
L.S.

Total
7.3. Net Profit (per annum)
=
=

Turnover Cost of Operation

Rs. 2,80,011/-

7.4. Net Profit Ratio

=

Net profit per year

X 100
Turnover per year

= 22.4 %

7.5. Rate of Return

=

Net profit per year

X 100
Total Capital Investment

= 43.0 %

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Value (Rs.)
10,00,000
2,25,000

12,50,000

Cyber Cafe

7.6. Break-even Point

Fixed Cost (Per Annum)
Rent

(Rs.)
96,000

Total Depreciation
Total Interest
Insurance
40% of salary and wages
40% of other Contingent expenses
(Excluding rent & Insurance)

59,100
84,689
12,000
97,680
31,200

Total

3,80,669

B.E.P
=

Fixed Cost
X 100
Fixed Cost + Net Profit

= 57.6 %

Address of Machinery & Equipment Suppliers

1.

M/s. R.R. System

Megdoot Building, Nehru Place, New Delhi

2.

M/s. Computer Age

91, Nehru Place, New Delhi

3.

M/s. Creative Computer System

91, Nehru Place, New Delhi

4.

M/s. Microtek International Ltd.

Microtek House, Udyog Nagar, Rohtak Raod, Delhi-110041

5.

M/s. Vintron Informatics Ltd.

F-90/1 A, Okhla Industrial Area, Ph-I, New Delhi-110020

6.

M/s. Sumitron Marketing

A-46, Naraina Industrial Area, Ph-I, New Delhi- 28

7.

M/s. Advance Tech Services

56, 2nd floor, Rani Jhansi Road, New Delhi-55

8.

M/s. Crown Electronics System

JG 1/7A, Vikas Puri, New Delhi 18

(All the leading branded computer manufacturer have their broad network and
hence nearest dealer may be contacted for computer hardware/software &
Computer stationary related items.)
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