Delight Internet Caf

Jitendra Kumar Ashish Tantubay Sudhir Kumar

Address: sector-62 Noida, near Labour chowk institutional area.

INTRODUCTION
Objective 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 affordable price. To know a fair return on the capital invested by the owner . Internet represents so much potential . The demand for efficient Internet infrastructure is growing rapidly. Entering into web related business activities, like web site creation, software development. Internet demographic becomes more mainstream . The project is based on 21 computers.

Project rationale

Proposed capacity

Total project cost

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

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.

TECHNICAL FEASIBILITY
Location of the project Unique Services Quality of Service Equipment Requirement (1) Furniture & fixtures Land & building requirement Human resource management Utilities requirement

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 of information 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.

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.

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.

Key Assumption
FINANCIAL ASSUMPTIONS: under this the project life is for 5 years, 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

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%

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%

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) Fax revenue(% of Internet sales) 3% Composing price 20 Web price 10000

10%

FINANCIAL ANALYSIS
Income statement:
Year Total revenue Total COGS Gross Profit Operating expenses Operating profit Non-operating profit PBT PAT 2012 1647533 722651 924882 354251 570631 254171 316460 253168 2013 1790928 727942 1062986 370552 692434 273493 418941 335153 2014 1984323 785502 1198821 388293 810528 290986 519542 415633 2015 2147718 828091 1219627 407618 912009 310033 601976 481580 2016 2311114 870708 1440406 420684 1011722 330757 680965 544772

Balance sheet:
Year 2012 2013 2014 2015 2016

Total current asset

Net fixed asset Total asset

62982
712160 1364242

1122560
534120 1673480

1691946
356080 2059226

2322665
178040 2503605

3011216
0 3011216

Total liabilities
Total equity Total liabilities & asset

444954
919288 1364242

419040
1254440 1673480

389151
1670075 2059226

354647
2151657 2503605

314389
2696427 3011216

 Cash flow:
Year Total operating activities Total financing activities Total investing activities Net cash Cash balance brought down Cash carried forward 2012 419004 -18326 400678 400678 2013 522353 -47034 457319 400678 875997 2014 602836 -53121 549715 875997 1425712 2015 668783 -60059 608724 1425712 2034436 2016 731971 -67969 664002 2034436 2698437

Ratio analysis Gross profit ratio Net profit ratio Asset turnover ratio Return on owners equity ratio Cash ratio Return on investment ratio

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.