ASIAN BUSINESS SCHOOL

PROJECT FOR

FINANCE MANAGEMENT
TOPIC Financial Feasibility Report of Business Centre

COURSE: PGDM+MEDIA MGMT. 3rd Trimester

SUBMITTED TO: Mrs. Rupali Mishra Nigam SUBMITTED BY: Ritika Raj

CERTIFICATION
This is to certify that this project of Finance Management on topic of Feasibility reportis a bonafide research work carried out by Ritika Raj, student of ABS, PGDM 3rd trimester.

Signature of faculty (Mrs. Rupali Mishra Nigam)

Dean, Signature (Dr. Latika Sahni)

ACKNOWLEDGEMENT
The completion of any project is not complete without thanking the people behind the venture & this project is no exception. Racing against the time & fast approaching deadlines, the fact that I am able to successfully complete the project just in time would not have been possible without the help and support of many people. Their constant guidance & encouragement coupled with my commitment were the cornerstones for the successful completion of the project.

It gives us immense pleasure to acknowledgement the teachers whose help gave the needed confidence, enthusiasm, and perseverance. I express my gratitude to my teacher Mrs.Rupali Mishra Nigam maam for providing the excellent guidance and opportunities to complete this project. I express my thanks to respected Prof. Dr. Latika Sahni, Dean, Asian Business School (ABS) Noida, for extending her support.

EXECUTIVE SUMMARY
PRM Enterprise is a total solution provider for printing related services and products such as office stationery, brochures, business forms, xerox, binding, courier and marketing materials to Noida commercial area businesses. I adopted a strategy which involves direct mail and telephone solicitation Printing is an unavoidable business expense for most businesses. With our combined experience, and this industry's resilience, we feel that this change in name and ownership coupled with our new marketing strategy will prove a sound business decision. Our keys to success and critical factors for the next year are, in order of importance: 1. Implementing good marketing plan. 2. Increasing our customer base. 3. Financial control and cash flow planning PRM Enterprise, unlike a typical cafe, will provide a unique forum for communication and entertainment through the medium of the Internet. PRM Enterprise is the answer to an increasing demand. The public wants: (1) access to the methods of communication and volumes of information now available on the Internet, and (2) access at a cost they can afford and in such a way that they aren't socially, economically, or politically isolated. PRM Enterprise's goal is to provide the community with a social, educational, entertaining, atmosphere for worldwide communication.

TABLE OF CONTENTS

SR.NO 1 2 3 4 5 6 7 8

PARTICULARS ACKNOWLDGEMENT INTRODUCTION OBJECTIVE

Page no

INTRODUCTION

Service Sector in India today accounts for more than half of Indias GDP.the fact that the service sector now accounts for more than half the GDP marks a watershed in the evolution of the Indian economy and takes it closer to the fundamentals of a developed economy. Services or the tertiary sector of the economy covers a wide gamut of activities like trading, banking and finance, infotainment, real estate, transportation, security, management & technical consultancy among several others. There was marked acceleration in services sector growth in the eighties and nintees, especially in the nintees. While the share of services in Indias GDP increased by 21% points in the 50 years between 1950 and 2000,nearly 40% of that increase was concentrated i n the nintees. While almost all service sectors participated in this boom, growth was fastest in the communications, banking, business services and others. One of the reasons for the sudden growth in the service sector in India in the nintees was the liberalization in the regulatory framework that gives rise to innovation and higher exports from the services sector. The boom in the services sector has been relatively jobless. The rise in services share in GDP has not accompanied by proportionate increase in the sectors share of national employment. Some economists have also cautioned that service sector growth must be supported by proportionate growth of the industrial sector; otherwise the service sector grown will not be sustainable. In the current economic scenario it looks that the boom in the services sector is here to stay as India is fast emerging as global services hub.

OBJECTIVE OF THE PROJECT To become a successful commercial entity whose knowledge and professional work lead it to a prominent position in the modern world and the ability to create new directions in the business industry In the long term, to become one of the most highly regarded and socially aware business firms and to satisfy the needs, desires and expectations of our customers. The future belongs to modern, enterprising companies that carefully plan and strategically manage the company while staying loyal to the tradition that led the way to business excellence. Identify major inputs to a business unit Identify various components of capital required. Estimate the profits. Learn various sources of help and finance for setting the business. Adopt good business practices required for an entrepreneur.

RATIONALE AND SCOPE OF THE PROJECT The following project helps us to estimate and to know about starting a virtual organization and that too in the field of service business. The main objective of the company is to be closely anchored and useful to the community and each of its individuals. We strive to satisfy our customers to the greatest possible extent with our products and services, and to cooperate with our business partners, suppliers and others to our common advantage. The reason why this business has scope because of the followings reasons: PRM Enterprise is a printing solutions provider dedicated to offering a single source for all printing needs with a priority on earning and maintaining our customer's trust. We will maintain a consistent and reasonable margin while providing customers with a fair price and exceptional service. We will also maintain a friendly, fair, and creative work environment that respects new ideas and hard work.

FINANCIAL FEASIBILITY OF PRM ENTERPRISE (a) Fixed Capital S.No. Particulars 1 2 3 4 5 Website development Computers,Scanner,Printers,Xerox and Binding machine Furniture Telephone Connection Power backup(genset) Total Amount (in Rs.) 32500 148344 10000 25000 35000 250844

(b) Working Capital (for 1st month) S.No 1 2 3 4 5 6 7 8 Particulars Electricity Rent Binding Cost Printing Cost Sweeper Salary Telephone Bill Miscellaneous Repairs and Renewal Total (For 2nd month) S.No 1 2 3 4 5 6 7 8 Particulars Electricity Rent Binding Cost Printing Cost Sweeper Salary Telephone Bill Miscellaneous Repairs and Renewal Total Amount (RS) 5000 20000 30000 30000 1000 12000 5000 5000 108000 Amount (RS) 5000 20000 30000 24000 1000 9000 5000 5000 99000

(For 3rd month) S.No 1 2 3 4 5 6 7 8 Particulars Electricity Rent Binding Cost Printing Cost Sweeper Salary Telephone Bill Miscellaneous Repairs and Renewal Total Amount (RS) 5000 20000 30000 35000 1000 15000 5000 5000 116000

Total working capital for 3 months=(99000+108000+116000) Rs. 323000

PRM ENTERPRISE (c) Statement of Total Project Cost S.No 1 2 Particulars Capital cost of the project Working capital requirement Total Amount (RS) 250844 323000 573844

(d) Initial Capital Requirement S.No 1 2 3 4 5 6 Particulars Website development Computers,Scanner,Printers,Xerox and Binding machine Furniture Telephone Connection Power backup(Genset) Working Capital for 3 months Total Amount (Rs) 32500 148344 10000 25000 35000 323000 573884

(e) Cost of Running per Year PRM ENTERPRISE S.No 1 Particular Depreciation on Computers,Scanner,Printers,Xerox and Binding machine @ 10% Depreciation on Furniture @15% Depreciation on Genset @20% 1st Year 3250 2nd Year 2925 3rd Year 2632

2 3

1500 7000

1275 5600

1084 4480

(f) Total Investment S.No 1 2 3 4 5 6 Particulars Website development Computers,Scanner,Printers,Xerox and Binding machine Furniture Telephone Connection Power backup(Genset) Working Capital for 3 months Total Amount (Rs) 32500 148344 10000 25000 35000 323000 573884

Break Even Point (B.E.P) B.E.P= Fixed Cost P/V Ratio P/V Ratio=Contribution X 100 Sales