PROJECT DETAILS 1.Introduction: My area of study is in Finance.

. Im doing my Project work at Ramamoorthy and Co Auditing Company, Located at Basheerbagh, Hyd. My Project title is A Project Financing Report of 3GTelecom Infra India Private Ltd. About 3G-Telecom Infra India Pvt Ltd (Client) 3G Telecom Infra India Pvt Ltd, Incorporated on 2009 and located at Suchitra, near Bowenpally, Hyderabad. 3G Telecom Infra (3GTI), a leading provider of network infrastructure solutions and strategic network design services, fully owns a robust fiber network throughout Andhra Pradesh state. They own their own network-unlike most other network companies who simply lease their network from other companies. They hold IP-1 (Infrastructure Provider) registration from Department of Telecommunications, Government of India. 3GTI is a Hyderabad-based company established by a group of experts in creating fiber optic networks for some of the most exacting customers in the telecom industry. Since its inception, they have installed over 1500 km of duct and fiber with over 1,300 access points, as well as hundreds of laterals off their backbone. As a leading service provider of network infrastructure solutions and strategic network design services, 3GTI designs, constructs and maintains an extensive Fiber Optic Infrastructure in and around the metro areas of Hyderabad, Secunderbad and Vizag. They are planning to own Fiber Optic networks in all other major cities of Andhra Pradesh. 3GTI provides enterprise customers and service providers in Hyderabad City and its surrounding boroughs with custom built carrier-neutral dark fiber optic networks. Company provides its

customers with a lower cost of ownership while delivering the highest levels of reliability and control of their network assets in the market. The company operates mainly in Hyderabad and Visakhapatnam and less in Vijayawada. Companys major customers are Tata, Vodafone and Beam Telecom. Expansion Plan: 3G-Telecom Infra India Pvt Ltd is going to start as a new internet service provider for the customers, for this the company will purchase the bandwidth from existing players those who are having their own bandwidth such as Bsnl or Airtel and provide to the customers. For this expansion Plan the company requires a new term loan of Rs 10000000 from the bank.

1.1 Need for Preparing a project Financing Report

To know the company details, their previous repayment capacities of the loan and the overall financial position of the company, the banker will ask the company to submit a project fianacing report, so that through verification will be done before the loan is sanctioned. Since the 3G-Telecom Infra India Pvt Ltd requires a new Term Loan of Rs 1cr, therefore Project financing report should be prepared and submitted to the bank to serve the bank loan.

1.2 Literature Review:

REQUIREMENTS FOR STARTING OF ISP: For laying fiber, there will be a general cost per Kms that can be used in a business plan to cover materials and construction costs.

 Rs 16000 per km is average for rural areas, which includes material and construction costs. When contracted out, price for boring is usually $6 a foot, hanging on poles about $2 a foot on the high side, and trenching on straight roads can be less than $1 a foot not including the fiber. Requirements to start an Internet service Provider: Company should purchase 512kbps unlimited plan from any of the service providers in bulk those who have their own bandwidth. Purchase 155 or more mbit/s at a time and sells the same to 6 or more customers at 512kbps unlimited to each. Offer broadband with the different speeds along with the rates 256kbps- 500rs 768 Kbps- 550rs 1Mbps - 750rs 2Mbps- 900rs 4 Mbps -1400 rs 8Mbps - 2400rs The way bandwidth is priced in India is the cost of International bandwidth plus amortization of heavy infrastructure sunk cost with high profits. The high profits are then divided between backbone providers, resellers and sub-resellers based on artificial management/sales structures needed to sell a product for price as high as possible. For First month we are estimating 300 connections, i.e 300*500=150000Rs revenue in 1st month , second month is 800* 500=400000rs, like that estimating rs 3cr revenue with in one year.

1.3 Statement of the Problem:

To Prepare a viability project report on 3G-Telecom Infra India Pvt ltd Such that the loan should be sanctioned.

1.4 Objectives of the Study:

- To find out the efficiency, Leverage, Profitability of the company by adopting ratio analysis Technique. - To find out the growth in Turnover, cost selection by adopting year On Year (YoY) ratio analysis. - Prepare Project Reports to raise funds from the bankers.

1.5 Scope of the Study:

I have conducted the detailed assessment of 3G Telecom Infra India Pvt Ltd within the following broad scopes as indicated by the bank, Management Scenario: Management details of the company are collected. Financial Viability: The audited financials of the company are collected, based on the historic values (from the archives) projections are made for the future to show the effectiveness of the company. Expansion plan: The Company is going to launch a new internet service provider apart from their existing business of constructing optic fiber network and giving lease to other service providers. The scope includes the review of the documents submitted by the company and validates the suitability of the plan.

2. Design Of the study 2.1 Sources of Data:

I have collected the data about the company from its authorized website and financials from its previous years annual reports. The data which I have collected for preparation of report is secondary data.

2.2 Limitations of the study:

The project finance report will not help to serve the bank loan if the company has poor repayment capacity of the loan or if the company has defaulted loan amount any time in the past. Report is not useful if the company uses long term loan for short term purposes. Financial report is not accepted by the bank if the company uses loan amount for purposes other than as mentioned in the report.