CHAPTER-1

INTRODUCTION

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1.1: INTRODUCTION: TOURISM & HOSPITLITY INDUSTRY

1.2: STATEMENT OF PROBLEM

1.3: OBJECTIVE OF THE STUDY

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1.4: research methodology

1.5: SCOPE & LIMITATION OF THE STUDY

1.6: CHAPTER PLAN

The entire thesis is divided into

Chapter 1

Chapter 2

Chapter 3

Lastly,

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 CHAPTER 2
TOURISM & Hospitality
industry

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2.1: introduction
2.2: Tourism: Advantage India
2.3: Evolution of the Indian Tourism
2.4: Rising ContRibution to india’s gdP
2.5: Rise In Foreign Arrivals
2.6 Rise In Income And Changing Demographics Boosting Demand
2.7: Increasing Spending on Tourism
2.8: SEGMENTS of tourism
2.9: Emerging Segments of Tourism
2.10: STRATEGIES ADOPTED in tourism
2.11: GROWTH DRIVERS FOR THE tourism MARKET
2.12: GOVERNMENT INITIATIVES in tourism industry
2.13: TOURISM in the FINANCIAL YEAR '16
2.14: GROWTH IN INVESTMENTS in tourism industry
2.15: PORTER’S FIVE FORCES ANALYSIS of hotel industry
2.16: Prospects of the Hotel Industry
2.17: Supply-Demand Scenario of the Hotel Industry

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 CHAPTER 3
A PROJECT IN HOTEL
INDUSTRY: FINANCIAL
VIABILITY

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3.1: ODISHA, A POTENTIAL TERRITORY FOR INVESTMENTS in hotel industry
3.2: PROJECT HIGHLIGHTS

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 3.3: basic assumptions

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 3.4: BLOCK CAPITAL STATEMENT
Table 3.1: Statement of Block Capital
Amt.(Rs. In
1.1 Civil Work & Interiors (Own) Lakh)
1. Land 7500 Sq. Ft. @ 4000 /Sq. Ft 3E+07 300.0
Sub Total 300.0
Civil Work Expenses

Sub Total 85.50

Interior Expenses

Sub Total 70.50

Total 456.00
1.2 Furniture & Fixtures
Rate(Rs. In Amt.(Rs. In
Sr. No. & Description Qnty(Nos.) Lakh) Lakh)
A. Deluxe AC Room (20 Nos.)

B. Super Deluxe AC Rooms(9 Nos.)

C. Suit (1 Nos.)

D. Banquet Hall( For one Banquete

Hall)

E. Restaurant

F. FOR FRONT OFFICE, RECEPTION &

OTHERS

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 Gross Total 31.32

1.3 Miscellaneous Fixed Assets

Gross Total 26.05

1.4 Preliminary & Pre-Operative Expenses Amt.(Rs.)

Total 1.05

1.5 Contingencies 1% 2.57

1.6 Block Capital 517.00

1.7 Cost of the Project 517.00

1.8 Working Capital (Own) 15.00

3.5: Production programme & inputs statement

Table 3.2: Statement of Inputs & Production programme
Amt.(Rs. In
1.1 MEANS OF FINANCE Lakh)

Total Project Cost 517.00

1.2 PRODUCTION PROGRAMME

In Terms of
Rupees
Installed Capacity 100% 196.50
1st
Utilized Capacity 70% 137.55 year
2nd
75% 147.38 year

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 80% 157.20 3rd year & Onwards
80% 157.2 5th year & onwards
Booking Amt.(Rs. In
S. No. Description Days Rate(Rs.) Lakh)
1 Deluxe AC Room
(20x250 days)
2 Super Deluxe AC Room
(9x250 days)
3 Suit
(1x250 days)
Banquet (1x150
4 days)
5 Restaurant
Total 196.50
1.3 RAW MATERIALS
Amt.(Rs. In
S. No. Items Qty Rate(Rs.) Lakh)
1
2
3
4
Total 28.15
1.4 UTILITIES
S. No. Items Amount(Rs.)
1
2
3
Total 6.39
1.5 MANPOWER
Salary(Rs./
S. No Designation Nos. P.M.) Amt.(Rs.)
FOR HOTEL
1
2
3
4
5
6
FOR RESTAURANT
7
8
9
10
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Gross Total Annual Salary 25.44
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1.6 REPAIR & MAINTENANCE EXPEXPENSES (Rs.) 0.5% 1.07

1.7 SELLING & DISTRIBUTION EXPENSES

Publicity Expenses 0.15% 0.29
Travelling 0.15% 0.29
Freight 0.10% 0.20
Insurance Cost 0.25% 0.49
Miscellaneous 0.10% 0.20
Total 1.47
1.8 ADMINISTRATIVE EXPENSES
Stationery & Printing 0.10% 0.20
Postage & Telephone 0.10% 0.14
Miscellaneous 0.10% 0.15
Total 0.30% 0.47

3.6: Assets & depreciation schedule

3.7: LOAN REPAYMENT SCHEDULE

3.8: profitability projections & ratio analysis

Table 3.6: Projected Profit/Loss Statements
Particulars Amount (Rs. In Lakh)
2017- 2018- 2019- 2020- 2021- 2022-
18 19 20 21 22 23 2023-24
Annual Turnover
1. Sales Realization
Total

Cost of Sales
I) Opening Stock of Consumables
ii) Add: Consumables Purchased
iii) Deduct: Closing Stock of Consumables
iv) Consumables Utilized
v) Utilities
vi) Salaries/wages
vii) Repairs/ Maint.
viii) Depreciation
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 Sub Total

Gross Profit (Before Depreciation)

Other Expenses
xiii) Interest (Term Loan)
xiv) Interest(W.C Loan)
xv) Depreciation
xv) Selling & Distribution
xvi) Administrative
xvii) Rent
xviii) Misc.(Approx.)
Total(Other Expenses)

Earning Before Tax

Earning Before Depreciation Interest &

Tax

Earning Before Interest & Tax

Taxable Income

Tax Payable (calculate)

Net Profit
Cash Surplus Available/ Cash Accrual

Repayment Principal

Net Surplus

TNW

Gross Operating Surplus (G.O.S.)

Cumulative G.O.S.
Debt Service Coverage Ratio
DSCR = Net Operating Income
Total Debt Service
Average Net DSCR
Net D.S.C.R. = Cash Accrual

Average Net D.S.C.R.

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Current Ratio
Debt equity Ratio
(DER)

Interest Coverage Ratio(ISCR)

PBDIT

PBDIT/ Sales

Net Profit/ Sales

3.9: break even analysis of the project

Table 3.7: Break Even Statement
Revenue 157.20

Variable Costs

Semi Variable & Fixed Costs

Contribution
(Revenue-Variable Cost)

Break Even Point as percentage of

Operating Max Capacity i.e in Third Year

Cash Breakeven Capacity

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3.10: cash flow projections of the project
Table 3.8: Projected Cash Flow Statement
Particulars 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24

In Flow of Cash

Out Flow of Cash

Opening Balance
Net Surplus
Closing Balance

3.11: projected balance sheets

Table 3.9: Projected Balance Sheets
Particulars 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24

Liabilities

Current Liabilities
Working Capital Loan/ Cash
Credit
Installment
Provision for
Taxation
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Sundry Creditors

Term Liabilities
Capital (Promoters
Contribution)
Profits after Tax
Long Term Loan
Total

Assets

Current Assets
Cash and Bank
Balance
Stock of
Consumables
Sundry Debtors
Advance & Deposits

Fixed Assets
Gross Block ie Fixed Capital
(at the Beginning)
Depreciation for the Year
Net Block at the End
Total

CHAPTER 4
CONCLUSION
4.1: Findings and suggestions

4.2: CONCLUSION
4.3: Future Research

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