CHAPTER – 2

ORGANIZATIONAL STRUCTURE
2.1 PROPOSED FORM OF ORGANIZATION

There are various forms of organizations such as sole proprietorship, Partnership, Pvt.
Ltd. Co., co-operative societies etc. Out of these the most suitable form of organization
for this Internet Cafe can be partnership firm.

A partnership firm can be registered by two or more persons but not

exceeding
20 persons. There are some advantages of this form of organization such as:-

In sole proprietorship only limited funds, which an individual holds, can be invested while
shares of a partner ship firm can be distributed among friends, relatives & considerably
large organization with more investment can be set up.

Partnership firms have a legal entity. It has perpetual succession & a common seal. The
profits of a partner ship firm are distributed in the form of profit all its members, which
reduces tax liability of a person. Had he been sole owner of the Firm, he would have to
pay tax on the entire profit.

2.2 ABOUT THE MAIN PROMOTERS:

The company is being promoted by Mr. Priyank Shah, Mr. Umang Shah & Miss
Parmar Jignasha
Mr. Priyank Shah has done B.com in Accounting & Financing. Then he

has done M.B.A. from one of the premier institute in North Gujarat i.e. SVIM, MBA
collage Ahmedabad. These competencies help him in knowing the intricacies in Finance
as in Administration Department & Head of the Plant. He has extensive knowledge of the
real business as well as computer field. He knows computer software such as
Capitaline, Prowess, SPSS, Foxpro, DOS, Tally, Newsclips, Capitastocks, Adobe
software and many others software. He is the cogent and enthusiastic personality

Mr. Umang Shah has done B.Com. After completing his graduation, he

has done M.C.A. from one of the premier institute. These competencies help him in
knowing the intricacies of this business in operator. He Knows computer software and
languages like C, C++, VB, Java, Oracle etc. . He is the cogent and enthusiastic
personality.

Miss Parmar Jignasha is good at financially aspect & the project is

5
 financed by her also. She has done B.Com. after completing graduation, she has
done M.B.A with specialization of Marketing. She has been responsible for successfully
coordinating the activities.

2.3 STEPS IN FORMING A PARTNERSHIP FIRM

The first step is to be taken for forming a partnership firm is to select a
few names of the proposed firm & put them in order of preference which
will be finalized.
The second step is to propose. The documents should be signed by all
the three members of the proposed partnership firm & stamp by notary.
2.4 NAME OF THE ORGANIZATION

Name of our organization would be SunShine Cyber Cafe, which would be located at
Opp. Mother Dairy, Near C.U.Shah College, Surendrangar- 363001, Gujarat.

2.5 PROPOSED LOCATION

For the Proposed project following premises should be considered.

 Proximity to the majority of people living are from middle income group
 Proximity to Private hostels setup in different areas of cities.
 Low cost rent Rs. 4000/- per Marla
 High visibility.

2.6 SERVICES

Proposed internet café will provide full access to the resources of internet and other
online services, printing, composing, scanning, fax. However or the sake of innovation
and differentiation there would be a unique services of Video/Audio Chat. Just being a
net café will not serve the purpose as business need to be more than a value addition
process rather than a traditional net café, that is why after being operational for first two
years there will be a facility added to the cart i.e. Web developing. It will not only be the
value addition but also a business expansion tool.

2.7 DATE OF INCORPORATION:

The Company will be incorporated on 1st April, 2009, with registration
number___________.
6

CHAPTER - 3
PROJECT BACKGROUND
3.1 PROJECT CONCEPT:

Sunshine Internet Cafe is being promoted by a cohesive team of three enthusiastic—

Mr. Priyank Shah, Mr. Umang Shah & Miss Parmar Jignasha. The promoters of the
company are well educated and command experience of the diversified areas in their
projects.
The company will be incorporate to provide internet service, printing, faxing, net to call
etc.. The promoters have a considerable knowledge in this field. Besides having
technical and marketing set up, the promoters are financially sound to set up a project of
this scale. All these factors combined together resulted into making this organization a
reality.

3.2 SCHEDULE OF IMPLEMENTATION:

Particulars of Activity
Apr
May June July
Aug
1. Incorporation of Company
⇒⇒
2. Acquisition of Land
⇒⇒
3. Computer & other Equipments
⇒⇒⇒ ⇒⇒⇒ ⇒⇒
4.Furniture & Fixtures
⇒⇒
5. Arrangement for Power
⇒⇒⇒ ⇒⇒
6. Internet Connections
⇒⇒⇒ ⇒⇒
9. Trial runs
Net Profit Ratio(% )
15.37
18.71
20.95
22.42
23.57
05
10
15
20
25
2010
2011
2012
2013
2014
Years
Percentage
3. ASSETS TURNOVER RATIO = Sales / Total Assets
Year
2010
2011
2012
2013
2014
Total Assets
1364242
1673480
2059226
2506305
3011216
Sales
1647533
1790928
1984323
2147718
2311114
Assets
Turnover(times)
0.83
0.93
1.04
1.17
1.30
Total Assets Turnover(times)
0.83
0.93
1.04
1.17
1.3
0
0.2
0.4
0.6
0.81
1.2
1.4
2010
2011
2012
2013
2014
Years
Percentage
4. RETURN ON OWNER’S EQUITY = PAT / Owner’s Equity X 100
24
Year
2010
2011
2012
2013
2014
PAT
253168
335153
415633
481580
544772
Owner’s Equity
919288
1254440
1670075
2151657
2696427
Return on
Equity (%)
27.54
26.72
24.89
22.38
20.20
Return on Owner's Equity
27.54
26.72
24.89
22.38
20.2
05
10
15
20
25
30
2010
2011
2012
2013
2014
Years
Percentage
5. CASH RATIO = Cash / Current Liabilities X 100
Year
2010
2011
2012
2013
2014
Cash
400678
875997
1425712
2034436
2698437
Current
Liabilities
231010
248570
268242
290238
314789
Cash Ratio(%)
173.45
352.41
531.50
700.95
857.22
25
Cash Ratio(%)
173.45
352.41
531.5
700.95
857.22
0
100
200
300
400
500
600
700
800
900
1000
2010
2011
2012
2013
2014
Years
Percentage
26

CHAPTER – 7
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 café business and
we have been able to apply our classroom knowledge to the practical life very
effectively.

In conclusion, from the above 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, conceived by the people already
experienced in the similar field. Promoters are having expertise in marketing for
decades. Individually each promoter is having a sound financial background. The group
concerns are also in profitable existence for a number of years. 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. Therefore, it can be concluded that the business has a high
potential.