Feasibility Report on Internet Cafe

CHAPTER – 1 PROJECT AT A GLANCE 1.1

PROJECT BRIEF

This objective of this document is to provide information regarding investment opportunity for setting up an Internet Café, with focus on product differentiation i.e., providing some unique services (Video/Audio Chat, Web Developing) which are not offered by a typical Internet Café. The business can be established in any of the major cities of the country. 1.2 OBJECTIVES For operating and establishing “SunShine Internet Café”, we are having some objectives.  To earn profit at less 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 1.3 MISSION STATEMENT  To achieve the economies of scale to minimize costs while maximizing value to Customers. 

To achieve leadership, core and functional competencies internet cafe business.

1

1.4

PROJECT RATIONALE

As the Internet spins a web of interconnectivity around the globe, as it grows literally by the hour, India is struggling, not to catch up but to keep from falling further and further behind. There has been a great increase in Indian content on the Internet. Many net entrepreneurs have been quick to realize the huge potential of the global market. Initially, most sites targeted the global Diaspora of Overseas Indians who had more access to the Internet, not to mention the credit cards that drive Net commerce. But there is a growing realization that the Net can reach the large and wealthy Indian Middle class. This group is rapidly plugging into the Net (still out of range for most people here) and there is increased use of credit cards. The Internet represents so much potential for India, and the demand for efficient Internet infrastructure is growing rapidly. This is where India has been failing. The demand has not yet been met efficiently and this represents an enormous barrier to business and societal development. the government, which has monopolized infrastructure development until recently, has recognized it must not hold back this development. They have opened the industry to private entrants and promised support. In practice, though, the vast bureaucracies that implement (theoretically) the government programs have moved sluggishly and ineffectively. For instance, the private ISPs that were allowed were initially required to acquire their bandwidth from VSNL which wanted a country wide monopoly on this lucrative sector. The result, new users signing up competed for increasingly limited bandwidth. Now the ISPs have been allowed to establish their own gateways but the effect has not yet been felt extensively. The DOT, responsible for providing phone lines to ISPs lagged way behind and the new providers are often left with far too few lines to service the increased demand. Lease lines are reduced, though still very expensive approximately $1000 per month for a 64 Kpbs line. Businesses are relying more and more on aspects of the Internet. Email, for instance, is a huge asset to companies. And more and more companies are entering into web related business activities, like web site creation, software development, and various service oriented businesses that utilize the Net, like medical transcription or data processing for overseas companies. As the internet demographic becomes more mainstream India is going to a prime battleground for internet business over the next five years. the Internet Service Providers Association of India (ISPAI) was set up in 1998 with a mission to 'Promote Internet for the benefit of all'. ISPAI is the collective voice of the ISP fraternity and by extension the entire Internet community. Over the years ISPAI has helped influence, shape and mould the telecom policies, so that ISPs and entrepreneurs in the business of Internet can setup and grow their services in an environment that is supportive and enabling.

2

Here in India there is 32.1 million peoples are internet users. So there is a great opportunity for India. India's Internet population stands at 32.1 million and is all set to grow to a 100 million by 2007-08. Internet Users in last few years in India: Internet Users 70000000

60000000 60000000

Intrenet Users

60000000

60000000

50000000 40000000 30000000

18481000

20000000 10000000

7000000 4500000

0 2001

2002

18481000 7000000

2003

2004

2005

2006

2007

2008

Years

. Source : http://www.indexmundi.com/g/g.aspx

3

1.5

PROPOSED CAPACITY

The proposed project is based on 20 computer systems. 1.6

TOTAL PROJECT COST

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

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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

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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, Surendrangar363001, 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___________.

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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 1. Incorporation of Company 2. Acquisition of Land 3. Computer & other Equipments 4.Furniture & Fixtures 5. Arrangement for Power

Apr May June ⇒⇒ ⇒⇒ ⇒⇒⇒ ⇒⇒⇒ ⇒⇒ ⇒⇒

July

Aug

⇒⇒⇒ ⇒⇒ ⇒⇒⇒ ⇒⇒

6. Internet Connections 9. Trial runs

⇒⇒

CHAPTER - 4

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CRUCIAL FACTORS & STEPS IN DECISION MAKING FOR INVESTMENT 4.1 KEY SUCCESS FACTORS The common viability of this Internet café depends on the following factors: 

Location of the project: Location of the project is of prime importance. If the project is set up in a location with high income group, the amount of traffic on the café will be less because majority of the people will have personal computers at their home. A project like this can really do well in places, where the majority of people living are from middle income group, who cannot afford a personal computer. Another location can be near private hostels setup in different areas of cities.



Unique Services: Majority of the internet cafes are operating on a similar kind of services. If the proposed setup is opened with a strategy of differentiation, it can be more successful i.e. video/Audio chat facility, for value addition, web development should also be started in the up coming years. In this feasibility web development services are initiated after two years of operations of net café.



Quality of Service: The most important factor for the success of the project is the quality of service provided to the customer, which includes customer’s privacy, speed of internet and the atmosphere in the café. 4.2 OT ANALYSIS OPPORTUNITIES Growing population of daily Internet users. The importance of the Internet almost equals that of the telephone. As the population of daily Internet users increases, so will the need for the services of internet café. THREATS



Rapidly falling cost of Internet access. The cost of access to the Internet for home users is dropping rapidly. Internet access may become so cheap and affordable that nobody will be willing to pay for access to it.



Emerging local competitors. Additional competitors are on the horizon, and we need to be prepared for their entry into the market.



A dependence on quickly changing technology. Internet Café is a place for people to experience the technology of the Internet. The technology that is the Internet changes rapidly. 8



Cost factor associated with keeping state-of-the-art hardware. Keeping up with the technology of the Internet is an expensive undertaking. Internet café needs to balance technology needs with the other needs of the business. One aspect of the business can't be sacrificed for the other. 4.3 KEY SUCCESS FACTORS The commercial viability of this proposed Internet Café depends on the following factors:



Location of the project is of prime importance. If the project is set up in a location with high income group, the amount of traffic on the café will be less because majority of the people will have personal computers at their home. A project like this can really do well in places, where the majority of people living are from middle income group, who cannot afford a personal computer. Another location can be near private hostels setup in different areas of cities.



Majority of the Internet cafés are operating on a similar kind of services. If the proposed setup is opened with a strategy of differentiation, it can be more successful i.e. video chat facility, or a small snack café along with the Internet service. With more services provided under the same roof, more traffic can be generated in the Internet café.



The most important factor for the success of the project is the quality of service provided to the customer, which includes customer’s privacy, speed of Internet and the atmosphere in the café. 4.4 TARGET CUSTOMERS The proposed project intends to cater to students and middle income group people Furthermore will be a magnet for local and traveling professionals who desire to work or check their e-mail massages in friendly environment.    

Students Business people Middle Income Groups Private Hostels

The large student population will become an important part of the Net Café customer base. The student population continues to grow with the success of the educational institutes. Evening entertainment, access to the Internet, and the upscale ambiance will attract the students. Business community is growing rapidly with the addition of new companies day by day. Internet café will provide an

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opportunity to local and traveling professionals to check their e-mails communications, this will be an attracting entity for the Middle income group and for the residents of private hostels as they do not have ccess to the internet at their living places. 4.5 MARKET NEED As 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, and access at a cost they can afford and in such a way that they are not socially, economically and politically isolated. 4.6 MARKET TRENDS More than 90 percent of visitors of these cafes and clubs are youngsters and their sole objective to get to these is to get enjoyment. 4.7 KNOWLEDGEABLE AND FRIENDLY STAFF Internet café is a service business. The success of the business depends upon the quality of the service offer and delivering the service consistently. So a knowledgeable friendly and eager to please staff, state-of-art computer hardware and a clear vision of the market need will help it succeed. 4.8 INTERNET CONNECTION The major cost of an Internet café is the Internet connection. For providing better service, the proposed project will use a High Band width connection for better speed as the project is going to provide service of video chat. It is recommended that the Internet connection should be taken from the best Internet service provider. 4.9 RECOMMENDED CONNECTION If the project is set up in area, where DSL Internet connection is available, it is recommended to use DSL Internet connection instead of a any other Internet connection. This will improve the speed of Internet, which will improve the performance of video chat and will also reduce the telephone expense.

4.10 MARKETING Marketing will play an important role in success of the project, as majority of the

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players in the industry are following the strategy of low price with no differentiation, i.e., they are providing similar services and competing with each other on the basis of lower prices. It is recommended to follow a different strategy for the proposed project, which is the product differentiation. For this purpose, 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.

CHAPTER – 5 TECHNICAL ANALYSIS 11

5.1 EQUIPMENT REQUIREMENT The proposed project is going to be of 20 computer systems and the details of the. Equipment required for the project is given below: EQUIPMENT REQUIREMENT DETAILS Description

No.

Total Cost(Rs.)

21

Cost Per Unit(Rs.) 25000

Computer System(P-4) Hub Computer Camera UPS Printer Scanner Modem DSL Other Equipment Networking Cable Total Equipment Cost

1 21 1 1 1 1

6000 1000 60000 28000 4000 8000

6000 21000 60000 28000 4000 8000

720 ft

10 per ft

7200 659200

No. 21

Rate (Rs.) 5000

Total Cost(Rs.) 105000

21 2 2 1 900 sq ft

2000 25000 1000 5000 30 per sq ft

42000 50000 2000 5000 27000 231000

525000

FURNITURE & FIXTURE DETAILS Description Computer Table & Cabins Computer Chairs Air Conditioner Telephone Sets Fax Machine Carpet Total Furniture & Fixtures

The project is based on Pentium-4 computer systems. Second hand systems are also available in the market at much lower prices. The reason for using the latest system is the new software coming in the market that requires more powerful systems which will provide better service to the customer. The prices of computer 12

systems vary with the introduction of new technology in the market. 5.2 HUMAN RESOURCE REQUIREMENT The details of human resource requirement for the project are given in the following table: Human Resource Requirement Description

No. 1

Monthly Salary(Rs) 8000

Annual (Rs) 96000

Network Administrator Security Guard Total Cost

1

4000

48000 144000

Salary

5.3 LAND & BUILDING REQUIREMENT The details of the area required for the proposed project is given in the below table: Covered Area requirement Details Description Computer Cabins Sitting Area Administrator Office Free Space Total Area Required

Area Required (sq ft) 600 100 100 100 900

Recommended Mode It is recommended that this project should be started in a rented building, as this will reduce the initial capital cost. The approximate area required is almost 4marla space. The details of monthly rent are given below: Rental Cost Details: Description Monthly Rent (Rs) Approximate Rent @ Rs. 16000 4000 per marla

5.4 UTILITIES REQUIREMENTS Mainly two utility are required to operate the cafe.

13

Annual Rent (Rs) 192000

 Electricity  Telephone

CHAPTER - 6

14

FINANCIAL PROJECTIONS 6.1 CAPITAL OUTLAY Cost of Project The total outlay on the project works out to Rs. 918200 and the margin money for working capital required to be brought in is Rs. 192000. Thus, the total cost of project works out to Rs.1110200, the details of which are given as under: Capital Expenditure Equipment Furniture & Fixtures Pre – Operational Expense Total Capital Expenditure (A) Working Capital Up Front Insurance Payment Up Front Building Rent Total Working Capital (B) Total Investment in Project (A + B)

Total Cost (Rs) 659200 231000 28000 918200 0 192000 192000 1110200

The working of the various major components of the cost estimates are based upon quotations and estimates obtained from suppliers. The preliminary and preoperative expenses are taken on estimated basis. Project Returns Internal Rate Of Return NPV (Rs) Pay Back Period (Years)

6.2

35% 360258 2.36

MEANS OF FINANCE

For the purpose of this pre-feasibility study, it has been assumed that all the funding required for this project would be provided by the investor himself. 15

PARTICULAR Equity Shareholder Fund Priyank Umang Jignasha

RATIO AMOUNT 1/3 1/3 1/3

370067 370067 370067

6.3 KEY ASSUMPTIONS FINANCIAL ASSUMPTIONS: Project Life(Years) Equity Discount Rate

5 100% 20%

PRODUCTION ASSUMPTIONS : NO. Of Computers Total capacity per day(Hours) Maximum Capacity Per Year Capacity Utilization (Year 1) % Capacity Utilization (Year 1) hours Capacity Growth Rate Per Year % Maximum capacity Composing/pages/day First year capacity Increase in composing capacity First year capacity Web Developing /web/year Increase in W.D.per Year

21 240 86400 70% 60480 5% 100 20% 5% 5 2

OPERATING ASSUMPTIONS: Shift per day Hours Operational Per Shift Days Operational Per Month Days Operational Per Year Pre-Operational Period

1 12 30 360 1

ECONOMY RELATED ASSUMPTIONS Electricity charges per month/year

25,212

16

Electricity Growth Rate Wages Growth rate Equipment Maintenance Growth Rate

10% 10% 2%

DEPRECIATION EXPENSE ASSUMPTIONS Computer Equipment Furniture-FIxtures Pre-Operation

20% 20% 20%

EXPENSE ASSUMPTIONS Internet Connection Charges Year 1 Connection Type Connection Charges Per Month Composing Charges (%of Composing sales) Web Development Charges(%of Web sales) Internet connection charges(Decrease Rate) Equipment maintenance(%of internet sales) Prepaid Building Rate(Months) Rent Rate Per Marla Sq. ft in per marla Rent Growth rate Insurance Rate(%of net fixed Assets) Marketing &selling Expense(% of sales) Taxes Printing expense(%of Printing Price) Fax(%Price of per Fax)

300000 512 KB 25000 50% 50% 1% 2% 12 4000 225 10% 2% 2% 20% 50% 50%

REVENUE ASSUMPTIONS

17

Video / Audio Chat Price/hour Internet Plain price/Hour Plain internet Usage Video/Audio Usage Internet sales price decrease rate W.A sales price per hour Printing revenue(%of internet sales) Fax revenue (% of internet sales) Composing price Web price

2 20 60% 40% 0% 22 10% 3% 20 10000

6.4 FINANCIAL ANALYSIS

18

6.4.1 PROJECTED INCOME STATEMENT Particular Sales

2010

2011

2012

2013

2014

133056 0 133056 39917 144000

142560 0 142560 42768 180000

152064 0 152064 45619 216000

161568 0 161568 48470 252000

1710720 171072 51322 288000

164753 3

179092 8

50000 198432 3

70000 214771 8

2311114

300000 66528 72000

297000 71280 90000

19958 26612 237553 722651

21384 28512 219766 727942

294030 76032 108000 25000 22810 30413 229217 785502

291090 80784 126000 35000 24235 32314 238668 828091

288179 85536 144000 45000 25661 34214 248118 870708

Gross Profit/Loss Operating Expenses Payroll Admin Marketing&selling Amortization (PreOperation) Depreciation

924882

106298 6

1198821

131962 7

1440406

144000 26611

158400 28512

174240 30413

191664 32314

210830 34214

5600 178040

5600 178040

5600 178040

5600 178040

5600 178040

Total Operating Profit/loss

354251 570631

370552 692434

388293 810528

407618 912009

428684 1011722

Internet Sales Printing Revenue Fax Revenue Composing Revenue Web development Revenue Total Revenue Cost Of Goods Sold Internet Connection Charges Printing Charges composing charges Web Development Fax Charges Machine Maintenance Direct Electricity Total COGS

90000

Non Operating Expenses Financial Charges(Short Term) Financial Charges(long Term) Building rent

26880

32341

34800

37554

40633

35291 192000

29952 211200

23866 232320

16927 255552

9017 281107

Total

254171

273493

290986

310033

330757

19

Profit Before Tax Tax Profit After Tax Retained Earning(Year Beginning) Retained Earning(year Ending)

316460 63292 253168

418941 83788 335153 253168

253168

588321

6.4.2 PROJECTED BALANCE SHEET

20

519542 103909 415633

601976 120396 481580

588321 100395 4

100395 5 148553 5

680965 136193 544772 1485537 2030309

Particular Assets Cash upfront Insurance Upfront Building Rent

Year 0

2010

2011

2012

2013

2014

192000

400678 17804 211200

875997 14243 232320

Total Current Assets

192000

629682

1122560 1691946 2322665 3011216

Gross Fixed Assets Less:Accumulated Depreciation

890200

890200

890200

890200

890200

890200

178040

356080

534120

712160

890200

Net Fixed Assets

890200

712160

534120

356080

178040

0

Pre - Operational

28000

22400

16800

11200

5600

0

Total Intangible Assets

28000

22400

16800

11200

5600

0

Total Assets

1110200

1364242 1673480 2059226 2506305 3011216

Running Finance Long Term Loan

192000 252080

231010 213944

248570 170470

268242 120909

290238 64409

314789 0

Total Liabilities Equity

444080

444954

419040

389151

354647

314789

Paid up Capital Retained Earning

666120 0

666120 253168

666120 588320

666120 666120 666120 1003955 1485537 2030307

Total

666120

919288

1254440 1670075 2151657 2696427

Total Liabilities & Equity

1110200

1364242 1673480 2059226 2506304 3011216

1425712 2034436 2698437 10682 7122 3561 255552 281107 309218

Liabilities

6.4.3 PROJECT CASH FLOW

21

Year O

2010

2011

2012

2013

2014

253,168 178,040 5,600 -17,804

335,152 178,040 5,600 3,561

415,635 481,582 544,770 178,040 178,040 178,040 5,600 5,600 5,600 3,561 3,561 3,561

419,004

522,353

602,836 668,783 731,971

-38,136

-43,475

-49,561

-192,000

-211,200

-232,320

Building Rent Expense Addition to Long term debt 252,080 Addition to Short Term Debt 192,000 Paid up Capital 666,120

192,000

211,200

-255,552 -281,10 -309,21 7 8 232,320 255,552 281,107

39,010

17,560

19,672

21,995

Casfh Flow By Financing Activities

-18,326

-47,034

-53,121

-60,059 -67,969

Operating Activities Net Profit Depriciation Insurance amortization Upfront Insurance Payment Cash Provided By Operations

0

Financing Activities Long term Debt principle Payment Building Rent Payment

918,200

-56,500 -64,409

24,551

Investing Activities Capital expenditure

-918,200

Cash Flow by Investing Activities

-918,200

Net Cash Cash Balance brought Forward Cash Balance

0 0

400,678 0

475,319 400,678

0

400,678

875,997

Cash carried Forward

0

400,678

875,997

22

549,715 608,724 664,002 875,997 1,425,7 2,034,4 12 36 1,425,712 2,034,4 2,698,4 36 37 1,425,712 2,034,4 2,698,4 36 37

6.4.4 RATIO ANALYSIS 1. GROSS PROFIT RATIO = Gross Profit / Net sales Year Gross Profit Sales Gross Profit Ratio(%)

2010 924882 1647533 56.14

2011 1062986 1790928 59.35

2012 1198821 1984323 60.41

2013 1319627 2147718 61.44

2014 1440406 2311114 62.33

Gross Profit Ratio(%) 64 Percentage

62 59.35

60 58

60.41

61.44

62.33

56.14

56 54 52 2010

2011

2012

2013

2014

Years

2.

NET PROFIT RATIO = Net Profit / Sales

Year Net Profit Sales Net Profit Ratio(%)

2010 253168 1647533 15.37

2011 335153 1790928 18.71

23

2012 415633 1984323 20.95

2013 481580 2147718 22.42

2014 544772 2311114 23.57

Net Profit Ratio(% ) 25

20.95

23.57

18.71

20 Percentage

22.42

15.37 15 10 5 0 2010

2011

2012

2013

2014

Years

3. ASSETS TURNOVER RATIO = Sales / Total Assets Year Total Assets Sales Assets Turnover(times)

2010 1364242 1647533 0.83

2011 1673480 1790928 0.93

2012 2059226 1984323 1.04

2013 2506305 2147718 1.17

Total Assets Turnover(times) 1.3

1.4 1.17

Percentage

1.2 1

0.83

1.04

0.93

0.8 0.6 0.4 0.2 0 2010

2011

2012

2013

2014

Years

4. RETURN ON OWNER’S EQUITY = PAT / Owner’s Equity X 100

24

2014 3011216 2311114 1.30

Year PAT Owner’s Equity Return on Equity (%)

2010 253168 919288 27.54

2011 335153 1254440 26.72

2012 415633 1670075 24.89

2013 481580 2151657 22.38

2014 544772 2696427 20.20

Return on Owner's Equity 30

27.54

26.72

Percentage

25

24.89

22.38

20.2

20 15 10 5 0 2010

2011

2012

2013

2014

Years

5. CASH RATIO = Cash / Current Liabilities X 100 Year Cash Current Liabilities Cash Ratio(%)

2010 400678

2011 875997

2012 1425712

2013 2034436

2014 2698437

231010 173.45

248570 352.41

268242 531.50

290238 700.95

314789 857.22

25

Percentage

Cash Ratio(%) 1000 900 800 700 600 500 400 300 200 100 0

857.22 700.95 531.5 352.41 173.45

2010

2011

2012 Years

26

2013

2014

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.

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