FINAL YEAR PROJECT

BATCH 2015-17

BUSINESS PLAN
ON

THE NSE CAFÉ

(NURTURE, SIP, EAT)

Submitted To-
Mr. VED SRIVASTAVA
(ASSISTANT PROFESSOR)

Submitted By-

SHASHANK SHARMA

(MARKETING, SEM 4TH )

(DEPT. OF BUSINESS ADMINISTRATION, LUCKNOW UNIVERSITY)

1
THE NSE CAFE
(NURTURE SIP EAT)

2
 TO WHOMSOEVER IT MAY CONCERN

This is to certify that the BUSINESS PLAN, Titled “THE NSE CAFÉ
(NURTURE, SIP, EAT)” submitted by Mr. Shashank Sharma as partial
fulfillment of requirement of the two year MBA (2015-2017) is a bonafide work
carried out by the student at our Institute.

This BUSINESS PLAN is his/her original work and has not been submitted to
any other University/Institute.

Business Plan Faculty

Date:
Place:

3
 DECLARATION BY THE STUDENT

I, Shashank Sharma student of MBA batch (2015-2017) declare that the

business plan entitled “THE NSE CAFÉ (Nurture, Sip, Eat)” is my own work
conducted under the supervision of Mr. Ved Srivasatava as a partial
fulfillment of final year project for the course of MBA submitted at Department
of Business Administration, University of Lucknow, Lucknow
I further declare that to the best of my knowledge the project does not contain
any part of any work which has been submitted for any other project either in
this institute or in any other without proper citation.
Place:
Date:

Signature of the Candidate

4
 ACKNOWLEDGEMENT

I would like to take the opportunity to thank and express my deep sense of
gratitude to my business plan faculty Mr. Ved Srivastava (Assistant Professor).
I am greatly indebted to him for providing his valuable guidance at all stages of
the study; his advice, constructive suggestions, positive and supportive attitude
and continuous encouragement, without which it would have not been possible
to complete the project.

I would like to thank my college mates who in spite of busy schedule has co-
operated with me continuously and indeed, their valuable contribution, help,
guidance have been certainly indispensible for my project work.

I owe my wholehearted thanks and appreciation to the entire staff of the

Department of Business Administration for their cooperation and support during
the course of my project.

I hope that I can build upon the experience and knowledge that I have gained
and make valuable contribution towards the corporate world in coming future.

5
 INDEX

PAGE
NO. CONTENTS
No.
1 EXECUTIVE SUMMARY 7

2 OBJECTIVES, VISION & MISSION 7

3 COMPANY SUMMARY 8

4 BUSINESS ORGANISATION SUMMARY 9

5 THE NSE LOCATION 9

6 PRODUCTS 10

7 MARKET OVERVIEW 15

8 ADVERTISING AND PROMOTION 16

9 18
COMPETITION
10 SWOT ANALYSIS 19

SALES FORECAST 20
11
12 PERSONNEL PLAN 22

13 BUDGET 24

14 LOANS AND INVESTMENT TABLE 25

15 PROFIT AND LOSS ACCOUNT 26

16 BALANCE SHEET 27

17 CASH FLOW STATEMENTS 28

18 FINANCIAL RATIOS 29

6
 INTRODUCTION

 EXECUTIVE SUMMARY:-

The NSE Café launched in November 2017, comes with a concept to

connect people in real world and help them in developing intellectual
skills and providing them a platform to showcase their talent. A place
where strangers can become friends, people can turn up to know about
each other along with enjoying hot baked food items and beverages, cool
refreshers, soothing music for an ultimate all-round satisfaction.

Located in sector-Q, Aliganj, Lucknow, The NSE Café provides various

gaming facilities like pool tables, carom board, uno etc. various fun
activities like discussions, quizzes, write your heart out etc will keep on
happening so as create an ultimate evergreen bond.

The café is in partnership with an investment of 1 crore rupees in Indian

currency. In the first year the company may face a loss of 10% on
investment and ROI will be -29% due to this loss.

But in 2nd year café will have net income increase of 29% with ROI of
59%. And in the third year cafe will have net income increase of again
29% with a ROI of 39% showing a consistent growth.

 OBJECTIVES:-

 Serving best quality food and beverages.

 Focusing on all round consumer satisfaction.
 Building a renowned brand image of the café.

 VISION & MISSION:-

In the era of virtual world The NSE focuses on creating real bonds and helping
people in exposing their skills along with satisfying their hunger with delicious
food items and refreshing beverages.
7
 COMPANY SUMMARY

The NSE Café will be located in Lucknow (U.P) in a rental building in Aliganj
Sector Q. started the NSE cafe in November 2017 as an activity oriented café
focusing mainly on delicious baked food items and refreshing beverages along
with various fun-filled, interactive and sporty activities with the thought of
connecting people in the real world. Unlike other cafes The NSE cafe will not
be just a place where its customers will come spend their time, eat & sip and
leave but will also involve them in various activities and internal competitions
so as to create bond and provide a small yet recognizable platform to showcase
their talent and skill and thus developing confidence among the stars of
tomorrow.

The NSE café will have snooker table for the love of indoor sports, music
system for different music lovers and also creating a lively atmosphere along
with various kinds of interacting activities like discussions, quizzes, innovative
idea generations, project discussions etc to connect strangers and developing an
intellectual and knowledgeable environment.

The core product of the NSE café i.e. its food items and beverages will include
various hot and fresh prepared, mouth watering baked items to satisfy
customer’s hunger along with various beverages filled with aroma of coffee
beans and other refreshing, chilling taste bud friendly flavors.

So the entire team of The NSE Café which includes our respected Manager, The
heavenly Kitchen Team, The Serving Team will make sure that the focal points
of The NSE Café i.e. “Nurture”, “Sip”, “Eat” gets implemented in perfection for
the ultimate all round satisfaction of our customers.

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 BUSINESS ORGANISATION SUMMARY
 NAME: THE NSE CAFE
 COMPANY TYPE: GENERAL PARTNERSHIP
 OWNER OF THE COMPANY: SHASHANK SHARMA, XYZ
 LOCATION: ALIGANJ SECTOR-Q, LUCKNOW

THE NSE LOCATION

 The NSE Cafe is located at Sector-Q, Aliganj, Lucknow , (Uttar
Pradesh) India.

 Cafe is in the area of 2000 square feet, which is in the vicinity of adjacent
main road.

 Café is well connected with various modes of transport like City bus No.-
33, 33C, 69, 65 and tempo & autos etc.

 Location landmark:-

 600m from Purania Chauraha.

 1km from engineering college chauraha.

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 PRODUCTS

The NSE Café offers various mouths watering, freshly prepared baked food
items along with various beverages filled with aroma of coffee beans and
various other taste bud friendly, chilling, refreshing flavors. The focus is on
providing highest quality of baked food items and beverages at affordable
prices. The ingredients used will be astonishing quality for the love of our
customer’s requirements.

Different sections of products offered are:-

 COFFEE REFRESHERS:-
Consists of various refreshing, chilling, mind boggling drinks filled with
the aroma of coffee.
Listing follows:-
 NSE Coffee ice ball.
 The Apchoc Coffee
 The Kala Khatta Coffee
 Ice Tea Coffee Refresher
 The Matka Kulfi Coffee

 COFFEE BEVERAGES:-
Consists of hot, relaxing coffee products with a tinge of innovation and
creativity.
Listing follows of hot coffee beverages:-
 Cappuccino
 Espresso
 Italian Coffee
 Coffee Mocha

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  The Creamy Java
 The NSE special

Listing follows of cold coffee beverages:-

 Coffee Latte
 Almond Toffee Latte
 Fruit Iced Mocha
 Cold Coffee (with/without ice cream)
 Coffee & Cookie Shake
 Espresso Cola
 The Eye Opener

 BAKED FOOD ITEMS:-

Beholds the freshly prepared, mouth-watering baked food items for the
love of foodies in town.
Listing of Baked Food Items:-
 The Creamy White Tide (Pasta)

 The Creamy Red Tide (Pasta)

 The Time Swiper (Pizza with heavy loaded cheese and heavy
toppings of olive, tomato, paneer, onion, corn)

 Desi Naan Pizza (Naan crust loaded with mushroom, matar,

paneer)

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 Mushroom & Potato Naan Pizza

 Homey Pizza (chessy pizza with topping duo of any of the

following two:- paneer, tomato, corn, mushroom, onion)

 Dessert Pizza (loaded with cream, cookies and choco ice-cream

for the icy feel)

 The NSE Burger (Veg cheesy/ Paneer cheesy/ Mix Chessy)

 The Desi Taco

 NSE French Fries

 Spaghetti & mix ball soup

 Tomato-Butter Spaghetti

 The Indian Spaghetti (includes paneer, matar, mushroom, soya

balls)

 Indian Stuffed Garlic Bread

 Mini Garlic Bread Balls

 Hakka loaded noddles

 Veggie chowmein soup

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  My Chow-Chow (in this customer has a choice to choose their
choice of toppings on noodles)

 FUN CORNER:-
Beholds various fun options for our consumers to unleash their gaming
zeal and develop their intellectual and bonding skills. Because The NSE
believe in doing different for the sake of our customers all-round
satisfaction.
Listing follows:-
 Pool tables
2 in numbers.
Maximum six players can play at each table at a time.

 Discussions, Quizzes & Talent Showcase:-

In this the staff will come up with certain talent showcase, quizzes
and discussions on various topics to involve consumers in a
meaningful purpose, creating never-ending bond with our
consumers and providing them a stage to develop bonds with
people whom they call strangers. As NSE believes in creating real
world bonds in an era of virtual universe.
The NSE café may come up with various offers and discounts for
our consumers to encourage their involvement in such activities.

 Carrom Board:-
2 in numbers.
For 4 players maximum at each.

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 Uno Card/ Ludo/ Chess etc:-
Sit eat, sip and play as traditional indoor games have their
ravishing evergreen fun impact.

 Write your Heart out:-

Consumers can use black board, note stickers, ice-cream sticks to
write out what they feel and what they want to say to us, their
friends and people whom they believe will visit to us later. Because
written messages have mind boggling impact from ancient times.

14
 MARKET OVERVIEW
MARKET SEGMENTATION & TARGET MARKET:-

 GEOGRAPHIC SEGMENTATION:-

 REGION:- Urban
 CITY:- 1st Tier

 DEMOGRAPHIC SEGMENTATION:-

 AGE:- 17-35, 45 and above age group

 GENDER:- Male, Female, Transgender
 INCOME: - 20k or above p.m.

 PSYCHOGRAPHIC SEGMENTATION:-

 PERSONALITY:- fun lovers, party animals, socially active.

 LIFESTYLE:- luxurious, bachelors, professionals.

 BEHAVIORAL SEGMENTATION:-

 USER STATUS:- first-timer, occasional, regular.

 USAGE RATE:- light, medium, heavy.
 OCCASSIONS:- birthdays, kitty parties

POSITIONING:-

 A café offering best quality mouth-watering baked food items and

refreshing & relaxing beverages and refreshers.
 A place with lively ambience and utmost hygiene care.
 A place for gaming lovers.
 A place for intellectual, passionate, creative, artistic people.
 A place for people who like to develop networks and create real life
bonds.

15
 ADVERTISING & PROMOTION

To make your brand renowned and trustworthy among your target market it is
highly important to focus on right advertising options that deliver the message
you want to deliver in the right manner at the right time to the right audience to
generate the impact expected by the company.

Advertisements options taken up:-

 WEBSITE:-

www.nsecafe.in
The website holds various information about the café, its menu, events
occurring, discounts and offers available, café videos and images and any
other relevant information for the comfort of consumers.

 APPLICATION (NSE APP):-

The mobile app beholds various offers and day to day information about
the café for our consumers. All members of the NSE Café can connect
with café team and other consumers through this App. It can be
downloaded from Play Store, App Store and Blackberry World.

 SOCIAL MEDIA PLATFORM:-

Facebook page:- www.facebook.com/nse_cafe

Instagram Page:- www.instagram.com/nse_cafe
Whatsapp Number:- +91-9876543210

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 PRINT MEDIA:-

Being an unique premium segment café in Lucknow, the NSE Café

believes that print media is of great importance to connect with the
intellectual class of the society.

Advertisements are given in newspapers like TOI, The Hindu, Hindustan

Times, I Next and various local magazines.

 COMMERCIALS HOARDINGS/ POSTERS/ PAMPLETS:-

Hoardings/ posters/ pamphlets can be found in major posh areas of the

city.

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 COMPETITION

 VINTAGE MACHINE:-

Strengths:-

 Infrastructure.
 Variety of burgers.
 Serene Ambience.

Weaknesses:-

 Too loud music.

 Service issues.
 Cleanliness problems.
 Unavailability of items as per menu.

 THE CONCEPT:-

Strengths:-

 Creative infrastructure.
 Variety of beverages.
 Colorful ambience.

Weaknesses:-

 Poor customer handling.

 Lacking focus on core products.

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 SWOT ANALYSIS OF NSE

 STRENGTHS:-

 Good consumer handling.

 Variety of baked food items, beverages and refreshers.
 Focus on offering the utmost quality of products.
 A different concept where focus is on creating bonds and
developing skills.
 Focus on utmost hygiene-care.
 Qualified staff.

 WEAKNESSES:-

 Zero experience in café business.

 OPPORTUNITIES:-

 Large potential target market.

 Unavailability of any café with such concept.
 Product diversification.
 Expansion options.

 THREATS:-

 Upcoming new cafes.

 Changing market trends.
 Increasing raw material prices.

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 SALES FORECAST

Our sales forecast assumes the following changes:

 In summers, consumers have high involvement & preference for cold

beverages & refreshers and low involvement & preference for hot
beverages.

 In winters, consumers have low involvement & preference for cold

beverages & refreshers and high involvement & preference for hot
beverages.

 Sales will be generally higher in festive seasons.

 Weekends and on schools and colleges’ holidays so sales is expected to

be higher than weekdays.

 Since we are serving both hot and cold beverages so deviation on overall
profitability will not be there or almost negligible.

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 SALES FORECAST TABLE

Particulars 2017 2018 2019

Unit Sales
Coffee Drinks 51950 81340 95650
Coffee Products 6854 10600 14515
Baked Goods 23770 31976 37714
Price Per Unit
Coffee Drinks 250 275 300
Coffee Products 500 550 600
Baked Goods 200 220 240
Sales
Coffee Drinks 12987500 22368500 28695000
Coffee Products 3427000 5830000 8709000
Baked Goods 4754000 7034720 9051360
Total Sales 21168500 35233220 46455360
Direct Cost Per Unit
Coffee Drinks 50 55 60
Coffee Products 250 275 300
Baked Goods 100 110 120
Direct Cost
Coffee Drinks 2597500 4473700 5739000
Coffee Products 1713500 2915000 4354500
Baked Goods 2377000 3517360 4525680
Total Direct Cost 6688000 10906060 14619180
Gross Profit 14480500 24327160 31836180
Gross Profit % 68% 69% 69%

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 PERSONNEL PLAN

The NSE café is based on the concept that it will bring consumers on a platform
to showcase their skills, develop real life bonds along with offering mouth-
watering freshly prepared baked food items and refreshing & relaxing
beverages.

As the NSE focuses on providing utmost quality, hygiene care and all-round
best customer satisfaction so it requires a dedicated, passionate and qualified
team to implement all plans as discussed.

The NSE Café team consists of:-

 OWNERS:- Shashank Sharma & XYZ.

Shashank Sharma is B.Tech (Mechanical and Automation Engineering)

from Amity University, Uttar Pradesh and MBA (Marketing).
After completing his studies he went into e-commerce industry and after
serving there for few years he left his job and came back to Lucknow to
work on his dream business of opening a café.

XYZ is also B.tech (Mechanical Engg) and MBA (Marketing). After

serving for few years in telecom industry he came to follow his passion
for café business.

 MANAGERS (2):-

Qualification:-
MBA in marketing/ general management with experience in hospitality
industry of 3-5 years.

 CHEFS (4):-

Qualification:-

Bachelor in Hotel Management with 2-3 years experience in hospitality

industry.

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 GROUND STAFF (6):-

Qualification:-

Normal graduates fresher and experienced both except B.Tech or B.E.

PERSONNEL TABLE

Particulars 2017 2018 2019

Manager 2 1743000 1830150 1917300

Chefs 4 1867500 2583400 2707900

Ground staff 6 1480500 1974000 1974000

Total 12 5091000 6387550 6599200

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 BUDGET

A budget is a quantitative expression of a financial plan for a defined period of

time.
It may include planned sales volumes and revenues, resource quantities, costs
and expenses, assets, liabilities and cash flows.
It expresses strategic plans of business units, organizations, activities or events
in measurable terms.
A budget is the sum of money allocated for a particular purpose and the
summary of intended expenditures along with proposals for how to meet them.

BUDGET TABLE

Particulars 2017 2018 2019

Expenses
Salary 5091000 6387500 6599150
Employee Related Expenses 1018200 1277500 1319800
Advertising 1260000 1260000 1260000
Maintenance 300000 300000 300000
Utilities and Wifi 480000 480000 480000
Leasehold Improvement 4500000 0 0
Total Expenses 12649200 9705000 9958950
Long-term Assets
Coffee Machine 1000000 0 0
Cash Register/POS Software 50000 0 0
Total Long-term Assets 1050000 0 0
Other Current Assets
Lease 2880000 0 0
Total Other Current Assets 2880000 0 0

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 LOANS AND INVESTMENT TABLE

Particulars 2017

UNITED BANK OF INDIA 5000000

XYZ 5000000

Total Amount Received 10000000

 FLOOR AREA:- 2500 Sq. Ft.

 LEASEHOLD IMPROVEMENT:-
It includes the expenses to improve the café infrastructure as per the
requirements.

 UTILITIES:-
The budget allocated for utilities include items like:-
o 2 pool tables
o Music System.
o Wifi
o 2 Computers
o 2 Printers
o Landline
o 2 Intercoms
o Other indoor games
o Stationeries
o Blackboard
o Television:- 2 LED; size- 43 inches.

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 PROFIT AND LOSS ACCOUNT

Particulars 2017 2018 2019

Revenue 21168500 35233220 46455360
Direct Cost 6688000 10906060 14619180
Gross Profit 14480500 24327160 31836180
Gross Profit % 68% 69% 69%
Operating Expenses
Salary 5091000 7026250 7918980
Employee Related Expenses 1018200 1405250 1583760
Advertising and Promotion 1260000 1386000 1512000
Repairs and Maintenance 300000 330000 360000
Utilities (Pool, WiFi) 480000 528000 576000
Renovation 4500000 0 0
Expensed Portion of Other Current
2880000 0 0
Assets
Depreciation and Amortization 210000 231000 252000
Total Operating Expenses 15739200 10906500 12202800
Operating Income (1258700) 13420660 19633380
Other Expenses (& Other Income)
Loss (or Gain) on Sale of Asset
Interest Expense 254950 248655 202140
Total Other Expenses (& Other
254950 248655 202140
Income)
Income Before Income Tax (1513650) 13172005 19431240
Income Taxes 0 1808015 2053680
Net Income (1513650) 11363990 17377560
Net Income / Sales -7% 32% 37%

26
 BALANCE SHEET

As of Period’s End 2017 2018 2019

Cash 6462450 16599555 33027780

Accounts Receivable 522900 614020 672240

Total Current Assets 6985350 17213575 33700020

Long-Term Assets 1050000 1155000 1260000

Accumulated Depreciation (210000) (462000) (756000)

Total Long Term Assets 840000 693000 504000

TOTAL ASSETS 7825350 17906575 34204020

Accounts Payable 447350 526955 577860

Total Current Liabilities 447350 526955 577860

Long-Term Debt 3891650 3394985 2667460

TOTAL LIABILITIES 4339000 3921940 3245320

Paid-in Capital 5000000 5000000 5000000

Retained Earnings 0 (2379355) 8581140

Profit and Loss – Current Period (1513650) 11363990 17377560

TOTAL OWNER’S EQUITY 3486350 13984635 30958700

TOTAL LIABILITIES &

7825350 17906575 34204020
EQUITY

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 CASH FLOW STATEMENT

Particulars 2017 2018 2019

OPERATING ACTIVITIES

Net Income (1513650) 11363990 17377560

Depreciation and Amortization 210000 210000 210000

Change in Accounts Receivable (522900) (191120) (158220)

Change in Accounts Payable 447350 42305 2905

Net Cash from Operating

(1379200) 11425175 17432245
Activities

INVESTING & FINANCING ACTIVITIES

Long-Term Assets Purchased or

(1050000) 0 0
Sold
Investments and Contributions
5000000 0 0
Received

Change in Long-Term Debt 4191650 (938070) (974020)

Net Cash from Investing &

8141650 (938070) (974020)
Financing

Cash at Beginning of Period 0 6462450 16599555

Net Change in Cash 6462450 10137105 16716225

Cash at End of Period 6462450 16599555 33027780

28
 FINANCIAL RATIOS

 LIQUIDITY ANALYSIS:-

 YEAR 1:-

o WORKING CAPITAL:-

Working capital= current assets- current liabilities

=69,85,350- 4,47,350
=65,38,000

o CURRENT RATIO:-

Current ratio = current assets/ current liabilities

= 69,85,350/4,47,350
=15.61%

o QUICK RATIO:-

Quick ratio= = (current assets- inventories)/ current liabilities

= (69,85,350-0)/4,47,350
=15.61%

 YEAR 2:-

o WORKING CAPITAL:-

Working capital= current assets- current liabilities

=1,72,13,575- 5,26,955
=1,66,86,620

29
 o CURRENT RATIO:-

Current ratio = current assets/ current liabilities

= 1,72,13,575/5,26,955
=32.66%

o QUICK RATIO:-

Quick ratio= = (current assets- inventories)/ current liabilities

= (1,72,13,575-0)/ 5,26,955
=32.66%

 YEAR 3:-

o WORKING CAPITAL:-

Working capital= current assets- current liabilities

=3,37,00,020- 5,77,860
=3,31,22,160

o CURRENT RATIO:-

Current ratio = current assets/ current liabilities

= 3,37,00,020/5,77,860
=58.31%

o QUICK RATIO:-

Quick ratio= = current assets/ current liabilities

= 3,37,00,020/5,77,860
=58.31%

30
 PROFITABILITY ANALYSIS:-

 YEAR 1:-

o GROSS PROFIT RATIO:-

Gross profit ratio= gross profit/ net sales

=1,44,80,500/2,11,68,500
=65%

o OPERATING PROFIT RATIO:-

Operating profit ratio= operating profit/ net sales

= (-12,58,700)/2,11,68,500
= -5.9% (loss)

o NET PROFIT RATIO:-

Net profit ratio= net profit/ net sales

= (-15,13,650)/2,11,68,500
= -7.1% (loss)

 YEAR 2:-

o GROSS PROFIT RATIO:-

Gross profit ratio= gross profit/ net sales

=2,43,27,160/3,52,33,220
=69%

o OPERATING PROFIT RATIO:-

Operating profit ratio= operating profit/ net sales

= 1,34,20,660/3,52,33,220
= 41%

31
 o NET PROFIT RATIO:-

Net profit ratio= net profit/ net sales

= 1,13,63,990/3,52,33,220
= 32%

 YEAR 3:-

o GROSS PROFIT RATIO:-

Gross profit ratio= gross profit/ net sales

=3,18,36,180/4,64,55,360
=69%

o OPERATING PROFIT RATIO:-

Operating profit ratio= operating profit/ net sales

= 1,96,33,380/4,64,55,360
= 42%

o NET PROFIT RATIO:-

Net profit ratio= net profit/ net sales

= 1,73,77,560/4,64,55,360
= 37%

 DEBT RATIOS:-

 YEAR 1:-

o DEBT TO ASSETS RATIO:-

Debt to assets ratio= total liabilities/total assets

= 43,39,000/78,25,350
= 55%

32
 o DEBT TO EQUITY RATIO:-

Debt to equity ratio= total liabilities/ owner’s equity

= 43,39,000/34,86,350
= 124%

 YEAR 2:-

o DEBT TO ASSETS RATIO:-

Debt to assets ratio= total liabilities/total assets

= 39,21,940/1,79,06,575
= 22%

o DEBT TO EQUITY RATIO:-

Debt to equity ratio= total liabilities/ owner’s equity

= 39,21,940/1,39,84,365
= 28%

 YEAR 3:-

o DEBT TO ASSETS RATIO:-

Dept to assets ratio= total liabilities/total assets
= 32,45,320/3,42,04,020
= 9.4%

o DEBT TO EQUITY RATIO:-

Debt to equity ratio= total liabilities/ owner’s equity

= 32,45,320/3,09,58,700
= 10%

33
 RETURN ON INVESTMENT (ROI):-

 YEAR 1:-

o RETURN ON INVESTMENT (ROI):-

ROI= Net income/ total equity

= (-15,13,650)/81,25,350
= -19%

 YEAR 2:-

o RETURN ON INVESTMENT (ROI):-

ROI= Net income/ total equity

= 1,13,63,990/1,85,95,170
= 61%

 YEAR 3:-

o RETURN ON INVESTMENT (ROI):-

ROI= Net income/ total equity

= 1,73,77,560/3,52,56,120
= 49%

34
 FINANCIAL RATIO TABLE

Projected

As of Period’s End Year 1 Year 2 Year 3

\iquidity Analysis

Net working capital 65,38,000 1,66,86,620 3,31,22,160

Current ratio 15.61% 32.66% 58.31%

Quick ratio 15.61% 32.66% 58.31%

Profitability Analysis

Gross profit margin 65% 66% 66%

Operating profit margin (-5.9%) 41% 42%

Net profit margin (-7%) 32% 37%

Debt Ratios

Debt to assets 55% 22% 9.4%

Debt to equity 124% 28% 10%

Investment Measures

ROI (-19%) 61% 49%

35