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ë In-house food and beverage ë @taff shortage
facilities ë Not a big space provided
ë Affordable price
ë ide options available for
non-vegetarians and
vegetarians
ë @ufficient fund for starting a
canteen
@  (Continued)
6    
ë evenue generation ë he hawkers below the
ë More than 250 people will college
have access to the service ë he food court
ë ther eating joints
Ñimitations

ë @pace provided is not very big


ë Not enough staff
ë Expansion scope is less due to space shortage
bjectives
ëo find out the feasibility , strategic
competitiveness and risk of setting up a new
canteen in our college
ë o provide service to students and staff of the
institute
ë o provide at reasonable cost a wide variety of
healthy, nutritious enjoyable food and drink
ëAny profit will be used for the benefit of the
institute
isk factors
ë@tudents might prefer outside food
ë astage
ë Delivery
ë @atisfying customer͛s needs
ë Freshness of the food
ë @taff problem
Financials
Profit and Ñoss Account Year 2011

o @taff 72,000 By @ales 20,54,400


o @upplier (Mrs` @harma) 10,62,000
o aw material 2,16,000
o verhead Expenses 30,000
o ravelling expense 6,000
o miscellaneous
expenses 24,000
o Depreciation 3550
o Profit 6,40,850
9,96,000 9,96,000
Financials

Balance @heet (2011)

Capital 1,50,000 Machinery 35500

Ñess:Deprec
Add: Net profit 6,40,850 7,90,850 iation 3550 31950
Current Ñiability Cash in
(Creditor) 88,500 hand 5,000
Cash at
bank 8,38,850

8,79,350 8,79,350
Financials
Projected Cash Flow @tatement
§  § § §  §  § 
Net @ales 14,90,400 1564920 1643166 1725324`3 1811590`515
C@ 8,49,550 892004`4 936604`62 983434`851 1032606`594
Depreciation 3550 3195 2875`5 2587`95 2329`155
otal expenditure 14,10,000 1486674 1561007`7 1639058`085 1721010`989
EBI or PA(as no interest or
tax) 80,400 78246 82158`3 86266`215 90579`52575
PADepreciation 83,950 81441 85033`8 88854`165 92908`68075
Ñess: Change in N C 0 42759`2 39905`46 41900`733 43995`76965
FCF 80,400 35486`8 42252`84 44365`482 46583`7561
Discounting Factor (8%) 8% 0`925925926 0`85733882 0`793832241 0`735029853
PV 6432 32858`14815 36225 35218`75 34240`45139

hus, since the PV is positive all throughout it is feasible to go ahead with this canteen`
Feasibility of the Project

ëPositive cashflow

ë PV is positive

ë Feasible project

ë Profitable for 5 years


ecommendations
ëIt is advisable to go ahead with the proposal of having a college canteen as due
to monopoly power in the college premises the college will benefit and we, as
the initiators will also succeed in our venture`

ëhe fixed assets we have will not be replaced for the next 5 years in order to
keep the expenses minimum` e will buy the best quality machines so that
they sustain for a longer period`

ëhe menu of the canteen will change with time but it will be altered with an
item of the same cost so that the students are given the items at the cost
permitted

ëhe food left over will be given to an old age home in @ealdah` Any student
passing that area while going home will be given the responsibility to drop it
there so that transport cost is saved

ëIf there is college on @aturdays then students will be allowed to prepare food
items from their homes n sell it in the canteen and this profit will be entirely
owned by them
Conclusion
ë e will work with Mrs` @harma on a contractual basis and she will be paid on
the 1st of every month

ëhe food will be delivered by her to our college premises so that no extra cost
is incurred by us on transport

ë e benefit as there is no set up cost to be incurred and no electricity charges


to be borne by us

ëhere will be a profit sharing ratio of 60:40 between the college authority and
us

ëhere is no headache of labour as the college will provide us with the staff

ëAny one out of the 5 of us, turn by turn, will keep a check on the accounts on a
daily basis
Primary data collected
QUE@INNAIE F A CÑÑEE CANEEN`docx

QUE@INNAIE F CÑÑEE CANEEN (Approval)`docx