PROJECT REPORT

OF

DINESH DHABA

AT

BANASU,
GUPTAKASHI

DISTRICT –RUDRARAYAG
(UTTARAKHAND) – 246439
 Project At a Glance
Name of the Project : Dinesh Dhaba

Business Address : Banasu(Guptakashi )

Nature of Business : Proprietary

Status of the business : Small Scale

Nature of Activity : Restaurant

Name of Proprietor : Mr. Dinesh Chandra Singh

PAN No. : GAIPS2202E

AADHAR NO. : 547902830518

Project Cost : 2.500 Lac

Loan Amount : 2.375 Lacs

Subsidy : 0.875 Lac

Period of Loan : 5 Year

INTRODUCTION:-

The proposed project is for setting up a restaurant under name & style
“Dinesh Dhaba ” at Banasu P.O.- Banasu, Distt Rudraprayag (UK) run by Mr.
Dinesh Chandra Singh R/o Banasu (Guptkashi), Distt Rudraprayag. The said
project will be situated near the helipad from where daily flights are available to
kedarnath Dham. The cost of project is coming 2.500 lacs. The promoter of the
said project already holds the required Land at the prime commercial location.
However since the resources of the proprietors are limited, he is seeking the loan
from bank for the said project. The promoter is well confident and have adequate
dynamism to make the said project a huge success.
Mission
The mission of this Restaurant is Providing 100 % satisfaction to every customer
- every visit. This includes Quality of Food, Fast Friendly and Attentive Service,
Accuracy in Order Taking and Anticipating the Customers’ needs. Achieving
economies to the scale of minimizing cost and maximizing value to the
customers.
Our Team
The success of any organization always depends on the Knowledge, Experience
and The Skills of the promoters. Working together as a Team would satisfy our
common goal of, Providing Quality food and Service and hence the, Customer
Satisfaction. Our Team would be made up of Dedicated and Experienced Staffs
and Chefs who would work together to achieve our common goal of Customer
Objective of the Restaurant
 To provide the customer Quality food at competitive price.
 Quality and Quick Service
 Quality Dining Area
 Quality Waiting Facility and
 Overall a Best and Enjoyable atmosphere

Financial Aspects :-

Furniture and Fixture

Amount in Rs
Particulars Qty Rate Amount
Counter 01 12,000.00 12,000.00
Office Chair 01 4,000.00 4,000.00
Dining Table 06 3,500.00 21,000.00
Chair PVC 50 500.00 25,000.00
Wooden Bench 04 5,000.00 20,000.00
Rack 06 3,000.00 18,000.00
Iron Bench 06 3,000.00 18,000.00
Diesel furnace 01 9,000.00 9,000.00
Utensils 73,000.00
Working Capital
(Including confectionary goods
& Raw Material for Restaurant) 50,000.00
Total 3, 00,000.00
MEANS OF FINANCE:
Own Contribution 12,500.00
Term Loan 2,37,500.00
--------------------------------
2,50,000.00
--------------------------------

OTHER OPERATING EXPENCESS (AVERAGE PER MONTH) AMOUNT

Electricity/Water Expenses 1,200.00

Communication Expenses 500.00
Boarding & Travelling 1,000.00
Freight & Forwarding 1,000.00
Misc. Expenses 1,500.00

TOTAL Rs. 5,200.00

Assuming that other operating expenses shall be increase 10% per annum.
Salary & Wages ( Per Month )

Particulars No. of Average Amount(Rs)

Workers Monthly Salary

Cook 02 6,000.00 12,000.00

Waiter 03 3,000.00 9,000.00
Helper 01 2,500.00 2,500.00
--------------------------------------------------------------------------------------------------
Total 23,500.00
Assuming that salary & wages for 1 Skilled Staff and 2 unskilled staff will pay only for
six months and increase 10% per annum..

Cost of Production:-

Depreciation on Furniture & Fixture @10% 20,000.00

Working Capital Per Annum 2,72,400.00
Interest @11.65 27,669.00
Raw material per year 6,00,000.00

Total 9,20,069.00
ASSUMPTIONS CONSIDERED IN THE PROJECT FOR FINANCIAL
ANALYSIS:
Cost, Turnover and Profitability Statement has been prepared for the last three years.

The Statement has been prepared on the following assumptions:-

1. Gross Sale have been taken on average basis.

2. Aggregate monthly expenses is assumed to be with annual increment of 10%.

3. Depreciationon fixed assets as per W.D.V. method. Rate of depreciation for Furniture &
Fixtures at 10%, for Plant & Machinery at 15%
4. The Loan is assumed to repay in five Years.

BASIS AND PRESUMPTION:

1. 300 working days have been considered per annum.

2. Minimum labor wages have been considered.
3. 11.65% rate of interest has been taken into account
Revenue Generation:
The revenue generation from the above said business is mostly depends on
the tourist season or the Kedarnath dham Yatra. The tourist season remains
open for an average 150 days of the total working days. Beside the yatra
season the revenue generation of remaining 150 days depends on the local
tourists and foreigners during the winter season.

Financial Analysis
Total no. of Covers during the yatra season per day - 50 Nos
Average Exp. revenue per Cover - 220/- (INR)
Avg. expected revenue per day - 50 covers
(Lunch ,Dinner, Breakfast)
Expected total sales per Day - 11,000/- INR (220 x 50)
Expected total Monthly sales during the yatra Season - 3,30,000/- (INR)

Total no. of Covers during the winter season per day - 20 Nos
Average Exp. revenue per Cover - 220/- (INR)
Avg. expected revenue per day - 20 covers
(Lunch ,Dinner, Breakfast)
Expected total sales per Day - 4,400/- INR (20x 220)
Expected total Monthly sales during the yatra Season - 1,32,000/- (INR)

Total Revenue generated in Yatra Season

3,30,000 per month x 5 Month = 16,50,000.00
Total Revenue generated in Winter Season
1,32,000 per month x 5 month = 6,60,000.00

Total revenue generated throughout the year 23,10,000.00

Breakeven Analysis
Average Monthly sale during throughout the year - 23,10,000.00

Average Food Cost @46% - (-) 10,62,600.00

Gross Profit throughout the year = 12,47,400.00

Average overhead per year (-) 9,20,069.00

Net Profit throughout the year - 3,27,331.00

Net Profit Per Month - 27,277.00

Conclusion
The above projections are just an average figure to get almost a close to
reality figure about what should be the minimum amount of business
required to be done.
With tourism starting to boom in Kedarnath Dham, if an ideal location is
selected in Guptakashi with a vision to expand the outlet to other parts of
the Rudraprayag the prospects of success looks very positive. The quality
of food and service should be maintained without any compromise and
frequent promotional activities will ensure long term success.