Final Feasibility Report of Entertainment Point

8/7/2019 Final Feasibility Report of Entertainment Point

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U n i ve rs i t y o f C en t r a l P u n j ab

C O U R S E N A M E : R E S E A R C H P R O J E C T

From:Muhmmad Bilal Ashraf L1S08MBBF2016Muheeb Ahmad L1F07MBBF2040

Tahir Ahmad L1S08MBBF0012

Nimer Ahmad L1S08MBBF2004

Feasibility Report for

Entertainment Point

on Lahore Canal

Advisor: Prof. Hafiz Musaddiq


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Feasibility Report_____________________

Preface

This project was assigned by the University of Central Punjab to prepare Feasibility Report

of Entertainment point on Lahore Canal, Our Advisor give us all material about the

project in which everything is mentioned that what kind of project he demand from us atearlier we think that it is an easy task because most of the contents required were understood

but as we started working on the project we realized that its a tough job. We try to include

accurate data and figures whereas some assumptions are necessary to be taken. In this time

period we were in touch with Professional Engineers, Charted Accountants and market with

different aspect and by making this professional project we gain a lot of knowledge from

different dimensions.

Further that because we are bound to establish Entertainment Point on Canal so we

recommend establishing this point in front of Medical Colony near Jalo because of huge

space as per our requirement. We conduct a survey on the targeted Population and got

appreciable response to open this point. Then we prepare the feasibility report in which we

include Project Cost, Yearly Expense, Yearly Revenue, Income Statement, Payback Period

and Internal Rate of Return to check Whether it is attractive to make investment or not?

During the preparation of the project, we have faced many difficulties especially in

calculating TotalConstruction Cost, Project Cost and Financial Analysis etc. All were tough

but interesting tasks but we have done them successfully. Despite of all these problems and

tough task, the whole work was very worth full. The whole project was very interesting and

we have learned a lot.


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Acknowledgement

After Almighty Allah, who is very merciful and most beneficial to us, we would like to

thanks our advisorProf. Hafiz Musadiq who helped us in every step or whenever we faced

any problem on the ladder regarding the preparation of the project. He never disappoints us

on any step which make hurdle for further proceeding. We pay our deepest gratitude to all

those persons and sitesthat helped us in getting primary as well as secondary data and

information to particular problem regarding the project for implementation point of view.


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Table of ContentsExecutive Summary ........................................................................................... 6

Introduction ....................................................................................................... 7

Capacity .......................................................................................................... 7

Visit Frequency................................ ............................................................... 8

Investment ...................................................................................................... 8

Proposed Location .......................................................................................... 8

Market Entry Timing ................................ ...................................................... 8

Risk Factors In Decision Making ....................................................................... 9

Recommendations .............................................................................................. 9

Marketing ....................................................................................................... 9

Pricing ................................................................................................ ............ 9

Product/Product Packaging ............................................................................. 9

Technology & Processes .................................................................................. 10

Machinery Cost............................................................................................. 10

Land & Building Requirement ......................................................................... 10

Land ............................................................................................................. 10

Requirement ................................................................................................. 10Space Allotment ........................................................................................... 10

Construction Cost ......................................................................................... 11

Utilities ................................................................................................ ......... 11

Suitable Location .......................................................................................... 11

Sketch ........................................................................................................... 12

Human Resource .............................................................................................. 13

FinancialAnalysis ............................................................................................. 13

Project Appraisal Summary ................................ .......................................... 13Total Project Cost ......................................................................................... 13

Income Statement ......................................................................................... 14

Balance Sheet ................................................................ ............................... 15

Cash Flow Statement ................................ .................................................... 16

Payback Period & Internal Rate OF Return................................................... 17


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Financial Calculation Notes ............................................................................. 18

Annual Revenue Budget ............................................................................... 18

Year WISE Calculation OF Gate & Parking ................................................. 19

Year WISE Calculation OF Entertainment Point Money .............................. 20

Year WISE Calculation OF Food, Souvenir Stalls & Sign Boards Money .... 21

Notes FOR Tools, Equipment, Computer & Telephone ................................ 22

Notes FOR Vehicles, Furniture & Security System....................................... 22

Notes FOR Direct Cost & Expenses ............................................................. 23

Notes FOR Salaries Expenses ....................................................................... 23

Notes FOR Annual Stores, Spares, Repair & Maintenance ........................... 24

Notes FOR General Expenses ....................................................................... 25

Notes FOR Schedule OF Depreciation .......................................................... 26

Assumptions .................................................................................................... 27


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Executive Summary

This project is submitted to University of Central Punjab as per the course requirements of

Research Project. Our institute assignedus the topic Establishing Entertainment Point on

Lahore Canal for our project. In this project all aspects are covered as per requirement. In

the initial stage we have providedthe purpose of this document and factors and decision

making for investment. Then we have Prepared project plan and all project profile which

contain project brief, capacity, investment, Product Mix, Financial Summary, Location,

timing and strategic recommendation etc. Then we have discussed technologies and processes

which are used in our project which include machinery requirement and repair &

maintenance. After that we have chosen suitable location and measured it for construction

cost &utilities requirements for the running of this project etc. then we have figured out the

Human Resource requirement as per our project size. At the end we have conducted Financial

Analysis and calculate projected income statement, Revenue, Expense Payback Period and

IRR (Internal Rate of Return) and gave all financial calculation notes and Key Assumptions.


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INTRODUCTION

This project is basically designed to facilitate the canal transportation as well as to provide an

entertainment point for children & youngsters. The survey conducted before the project

feasibility reveals that our country has a shortage of picnic point and the people want

entertainment after their routine life where they can come with friend and families to relax

themselves. The canal is a beautiful place but unfortunately no project has been established torealize its beauty. Although many decision has been made by PHA and other government

organizations but they were only limited to the decision. In this project we have tried to cover

all aspects regarding start up production marketing and finance.

We sell services of joy rides and providing pleasant environment to the people visiting this

point either they are using the canal transportation or visiting it separately. For the attraction

of population, a combination of Six (6) different rides is used in this feasibility study.

Although for this purpose if required the foreign rides can be imported but this will increase

the cost very much whereas Video Games, Mini Zoo, etc. are extra options in this project.

Foodstalls, advertisement, and car parking are also our sources of income.

Capacity

In this project the capacity is

y Eighteen Thousand visitors per annumy 6 Rides are installed in an area of 6 Kanals.y Number of working days has been taken as 360.y The average round1 of a ride is 6 rounds per hour.

Capacity and the seating capacity arecalculated as under:

Capacity of joy rides

Rides Van Seats/Van Total Seats Capacity/Day

Clown Around 6 4 24 1,008Swan 6 2 12 504

Mono Cycle 3 6 18 756

Kiddy Rides (10 No.) 10 1 10 420

Dodgem Cars 4 2 8 336

Free Fall 2 6 12 504

Total 31 21 84 3528

y Total capacity of 84 seats x7 working hours per day x 6 Rides per hour.y Maximum number of visitors in a day is 30% of Total Capacityits mean 1,058 visitors

per day.

y 1The average duration of rides as 3 minutes. Loading and offloading time for the rideshave been taken as 7 minutes so one round of ride will consume 10 minutes in total,

which would result in 6 rounds of rides per hour.


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VISIT FREQUENCY

The estimated visit frequency of these visitors is given below:

50% would visit once a year

25% would visit twice a year 15% would visit thrice a year

10% would visit four times a year

It is further estimated that average spending per person per visit to the Entertainment Point is

Rs 100. Whereas final results can vary depending upon spending per person, ticketing fee,

parking fee and other charges.

Investment

y Total cost of the project Rs. 20 million.y Fixed cost of Rs. 19.8 million.y Working capital of Rs. 0.2 million.

Proposed Location

The proposed locations for the this project are;

In front of medical colony

Wafaqi Colony

Chabacha Area

The most suitable location on which all the assumption and calculation is done is in front of

Medical Colony where there is suitable place for parking and is within the reachable distance

for the people.

Market Entry Timing

The main focus in this case is the children/kids and youngsters ranging from age group of 3-

25 years so timing should be deciding accordingly.

The Peaks season

Summer/winter holidays of the kids

Off peaks season

Ramadan/Muharram & the days of exams respectively.

Other than the Off Peaks, this project can then launched at any time in the whole year

because this can also be used by the traveler of the canal transportation for stay &

wait.


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RISK FACTORS INDECISION MAKING

Before making an investment it is beneficial to consider the following risk factors;

y The number of visitors is the main portion of this project which will make it successful. This point must be established on that place where there is a continuous

flow of visitors. The best solution is to evaluate the minimum number of visitors perday.

We have considers that it will attract 2%-3% in the target location which figured out

as 500 to 600 visitors per day.

y Selection of rides based on the popularity and space available for the project. As thisproject is associated with canal transportation so it can be established at any point

where there is a suitable space and the rides can be increased or decreased to cover the

available. We have chosen the place in front of Lahore dental college as there is a

huge place there for average number of rides parking and other facilities. The most

benefit of that place is that it will affect the traffic flow on a lesser extend as

compared to wafaqi colony and chabacha.

y In addition to rides there must be other facilities like suitable place for sitting, cleandrinking water, ticket counter and food and beverage stops.

Recommendations

Marketing

Marketing of this Entertainment Point will play a key role in the success of project. Major

marketing options include, site advertisement, cable ads, signboards, pole signs, Billboards

and handbills etc.

Pricing

It is recommended that the average spending per person per visit to the Entertainment Point

should not exceed average per day income of the targeted market. Any pricing strategy

should be designed based on this guideline.

Product/ProductPackaging

Product/Product package can be directly correlated with the type of location, spending power

of people in that area and the total investment available with the entrepreneur for this project.


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Technology & Processes

It is recommended that local machinery with local installation is favorable. There is also

foreign with technology with installation are available but it increases the cost which will

become unaffordable for the investment in more than one point. Major Concern for the ride is

the quality and safety measures which are reasonable in local machinery and local installation

capabilities are acceptable. Therefore for this project local technology with local installationhas been considered whereas foreign technology can be used if required which results

variation in given results.

Machinery Cost

Machinery Cost in Rs.

Name of the Rides Qty Unit Cost Total Cost in Rs.

Clown Around 1 1,170,000 1,170,000

Swan 1 910,000 910,000

Mono Train 1 1,400,000 1,400,000

Kiddy Rides 10 100,000 1,000,000Dodgem Cars 4 25,000 100,000

Free Fall 1 1,600,000 1,600,000

Total 6,180,000

LAND & BUILDINGREQUIREMENT

Land

For the proposed set up on the green belt of the canal, the land is in the ownership of govt.and this project is made for the govt. to welfare the nation. Therefore the cost of land is not

included in this report.

Requirement

For the proposed set up with 6 Rides, a total of 2,4000sq.ft of land is required for this project.

It includes

Installation of rides Management building Ticketing booths Food and beverages places Parking space and others.

Space Allotment

Joy Rides 18,000 20,000sq.ft.Food Stalls & sign Boards 900 sq.ft.

Other Construction Area2

2,000 3100 sq.ft.

2Other Construction Area include (Ticket booths Admin Block Public Toilets Workshops &

stores Water Drainage & supply Boundary Wall and Telephone & Gas Works)


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ConstructionCost

Total cost of building & civil works is estimated below.

Construction Cost

Facilities Total Cost

Civil works for Joy Rides 3,845,000

Buildings 2,118,000

Landscaping Work 1,965,000

Total 7,928,000

Utilities

In this project utilities would be Electricity, water and gas. Water supply would be through

local tube well. In addition to it we use three computers with UPS, one telephone internal

exchange. Almost Rs. 8 millions is estimated as annual expense associated with utilities.

Utility Requirement

Facilities Total Cost

Gas 500,000

Electricity 6,500,000

Water 500,000

Telephone 500,000

Total 8,000,000

Suitable Location

The suitable location for the project would be

In front of Medical Colony Wafaqi Colony Mughal Pura

The most favorable space for this

project is in front of Medical

Colony because our main purpose is

to provide Entertainment Point on

Canal as well as this space has ahuge space for parking and will

affect the traffic flow lesser as

compared to other locations.There is

another benefit is that 3-4 colonies and Societies are linked with this Location.


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Sketch


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HUMANRESOURCE

The following requirement of staff along with their levels and monthly salary is foreseen for

this project:

H

uman Resource RequirementDesignation Salary

Staff Monthly Annum-Rs

C.E.O 1 30,000 360,000

Senior Management Admin Staff 2 25,000 600,000

Middle Management Admin Staff 2 20,000 480,000

Junior Admin Staff 2 15,000 360,000

Technicians & Electricians 4 8,500 408,000

Machine Operators & Machine attendance 8 8,000 768,000

Guards, Mali, Janitorial Service etc. 8 7,000 672,000

Total 27 113,500 3,648,000

FINANCIALANALYSIS

FINANCIAL ANALYSIS

Project Appraisal Summary

Parameter Details

Location In front of Medical Colony on Canal

New/ Expansion New

Setup Govt. Owned

Total ProjectCost

Description Total Rs

Building & Civil Works 7,928,000

Plant & Machinery 6,180,000

Tools, Equipment, Computers & Telephones 347,000

Electric Installations 4,000,000

Vehicles, Furniture & Security System 1,119,400

Contingencies 309,000

Total Fixed Cost 19,883,400

Net Initial Working Capital200,000

Project Cost 20,083,400


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Income Statement

Projected Income Statement

Year 1 Year 2 Year 3 Year 4 Year 5

Revenue22,572,000 24,783,120 27,212,853 29,882,969 32,817,419

Direct Cost &

Expenses 9,904,750 10,201,893 10,507,949 10,823,188 11,147,883

Gross Profit

12,667,250 14,581,228 16,704,904 19,059,781 21,669,536

Salries& Benefits

3,648,000 3,939,840 4,255,027 4,595,429 4,963,064

Depriciation

1,540,530 1,540,530 1,540,530 1,540,530 1,540,530

Other Income 0 0 0 0 0

Operating Profit

7,478,720 9,100,857 10,909,346 12,923,822 15,165,942Financial Charges 0 0 0 0 0

Profit Before Tax

7,478,720 9,100,857 10,909,346 12,923,822 15,165,942

Taxation

2,991,488 3,640,343 4,363,739 5,169,529 6,066,377

Net Profit

4,487,232 5,460,514 6,545,608 7,754,293 9,099,565


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Balance Sheet

Projected Balance Sheet

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Capital & Reserves

Capital 20,083,400 20,083,400 20,083,400 20,083,400 20,083,400 20,083,400

Retained Earnings - 4,487,232 9,947,746 16,493,354 24,247,647 33,347,212

Sub Total 20,083,400 24,570,632 30,031,146 36,576,754 44,331,047 53,430,612

Current Liabilities

Accrued Expenses - 364,800 393,984 425,503 459,543 496,306

Tax payable - 2,991,488 3,640,343 4,363,739 5,169,529 6,066,377

Sub Total - 3,356,288 4,034,327 4,789,241 5,629,072 6,562,683

Total Equity &

Liabilities 20,083,400 27,926,920 34,065,473 41,365,995 49,960,119 59,993,295

FixedAssets

Fixed Assets 19,883,400 18,342,870 16,802,340 15,261,810 13,721,280 12,180,750

Sub Total 19,883,400 18,342,870 16,802,340 15,261,810 13,721,280 12,180,750

Current Assets

Debtors - 44,280 47,304 50,544 54,016 57,737

Cash & Bank Balance 200,000 9,539,770 17,215,830 26,053,642 36,184,823 47,754,809

Sub Total 200,000 9,584,050 17,263,134 26,104,186 36,238,839 47,812,546

Total Assets 20,083,400 27,926,920 34,065,473 41,365,995 49,960,119 59,993,295


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Cash Flow Statement

Cash Flow StatementYear 0 Year 1 Year 2 Year 3 Year 4 Year 5

Operating Profit - 7,478,720 9,100,857 10,909,346 12,923,822 15,165,942

Add Depreciation - 1,540,530 1,540,530 1,540,530 1,540,530 1,540,530

Capital 20,083,400

Other Source

Long Term Loan - - - - - -

Inc/Dec in AccruedExp - 364,800 29,184 31,519 34,040 36,763

Total 20,083,400 9,384,050 10,670,572 12,481,395 14,498,392 16,743,235

Applications

Fixed Assets 19,883,400 - - - - -

Long Term Loan - - - - - -Payment Of

Financial Charges - - - - - -

Tax Paid - - 2,991,488 3,640,343 4,363,739 5,169,529

Inc/Dec in Current Assets - 44,280 3,024 3,240 3,472 3,721

Total 19,883,400 44,280 2,994,512 3,643,583 4,367,211 5,173,250

Surplus 200,000 9,339,770 7,676,060 8,837,812 10,131,182 11,569,985

Opening Balance - 200,000 9,539,770 17,215,830 26,053,642 36,184,823

Closing Balance 200,000 9,539,770 17,215,830 26,053,642 36,184,823 47,754,809


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PaybackPeriod & Internal Rate ofReturn

Payback Period & Internal Rate of Return

Year Net Profit Depreciation Cash Flow Net Cash

Flow

NPV @

26.42%

0 (20,083,400) 0 (20,083,400) (20,083,400) 01 4,487,232 1,540,530 6,027,762 (14,055,638) 4,767,924

2 5,460,514 1,540,530 7,001,044 (7,054,594) 4,380,356

3 6,545,608 1,540,530 8,086,138 1,031,544 4,001,851

4 7,754,293 1,540,530 9,294,823 10,326,367 3,638,599

5 9,099,565 1,540,530 10,640,095 20,966,462 3,294,670

20,083,400

P.P3

= (Last Year With-ve Cash Flow) +

(Absolute Value of Net Cash

Flow in that Year)

(Total Cash Flow in theFollowing Year)

P.P = 2+ 7,054,594

8,086,138

P.P = 2.87 Years

IRR = 26.42%

3P.P= Payback Period


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Financial CalculationNotes

Annual Revenue Budget

Year

Annual Fee Annual Rental

of Stalls&Signboards

TotalGate & Parking Park

0 0 0 0 0

1 4,080,000 18,000,000 492,000 22,572,000

2 4,412,520 19,845,000 525,600 24,783,120

3 4,772,140 21,879,113 561,600 27,212,853

4 5,161,070 24,121,722 600,178 29,882,969

5 5,581,697 26,594,198 641,524 32,817,419See notes in next Pages


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Year wise Calculation ofGate & Parking

Average No. of visitors expected per day 500

No of working days in one year. 360

%age annual increase in no. of visitors. 3%

Annual increase in visitor entrance fee in %age. 5%

Visitors entrance fee in Rs. 20

Vehicle Parking fee in Rs. 20

Annual increase in vehicle parking fee in %age. 5%

% age of visitor visiting park by their own car* It i s assumed that one vehicle contains 3 people.

40%

Daily Yearly

Yr C.U4

E.F5

Vehicleparking

fee

No ofVisitor

No ofVisitor

withOwn

Car

No ofVehicles

Incomefrom

Entrance

Fee

IncomeFrom

Parking

Incomefrom

Entrance

Fee

IncomeFrom

ParkingTotal

0 0 0 0 0 0 0 0 0 0 0 0

1 100% 20 20 500 200 67 10,000 1,333 3,600,000 480,000 4,080,000

2 100% 21 21 515 206 69 10,815 1,442 3,893,400 519,120 4,412,520

3 100% 22 22 530 212 71 11,696 1,560 4,210,712 561,428 4,772,140

4 100% 23 23 546 219 73 12,650 1,687 4,553,885 607,185 5,161,070

5 100% 24 24 563 225 75 13,681 1,824 4,925,027 656,670 5,581,697

4C.U = Capacity Utilization

5 E.F = Entrance Fee


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Year wise Calculation of EntertainmentPoint Money

Average No. of visitors expected per day 500

%age annual increase in no. of visitors. 5%

Average fee for rides in Rs. 100

Annual increase in visitors entrance fee in %age. 5%

Daily Yearly

YearCapacity

Utilization

No of

WorkingDays

Volume

ofVisitors

EntranceFee Total Total

0 0% 0 0 0 0 0

1 100% 360 500 100 50,000 18,000,000

2 100% 360 525 105 55,125 19,845,000

3 100% 360 551 110 60,775 21,879,113

4 100% 360 579 116 67,005 24,121,722

5 100% 360 608 122 73,873 26,594,198


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Year wise Calculation of Food, Souvenir Stalls & Sign Boards Money

Total covered area of food service/souvenir stalls 500

Monthly average rentals per sft. in Rs. 50

Annual increase of monthly rentals in %age. 8%

Total area of sign board in sft. 400

Monthly rentals of Sign Boards in sft. in Rs. 40

Annual increase of monthly rentals in %age. 5%

Food/Souvenir stalls Sign Boards

YearArea

in

sft.

Monthly

Rentals

per sft.

Monthly

Income

Yearly

Income

Area

in

sft.

Monthly

Rentals

per sft.

Monthly

Income

Yearly

IncomeTotal

0 0 0 0 0 0 0 0 0 0

1 500 50 25,000 300,000 400 40 16,000 192,000 492,000

2 500 54 27,000 324,000 400 42 16,800 201,600 525,600

3 500 58 29,160 349,920 400 44 17,640 211,680 561,600

4 500 63 31,493 377,914 400 46 18,522 222,264 600,178

5 500 68 34,012 408,147 400 49 19,448 233,377 641,524


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Notes for Tools, Equipment, Computer & Telephone

Tools, Equipments, Computers & Telephone

DescriptionUnit Cost in

Unit Qty Rs. Total Cost

Tools 1 50,000 50,000

Equipments 1 100,000 100,000Total ofTools &Equipments 150,000

Computers

Computers Each 3 12,000 36,000

UPS Each 3 25,000 75,000

Laser Printers Each 1 9,000 9,000

Misc. 1 5,000 5,000

Total of Computers 125,000

Telephone

Telephone Exchange Each 1 60,000 60,000

Telephone Sets Each 10 700 7,000

Misc. Accessories & Wiring 1 5,000 5,000

Total ofTelephone 72,000

Total 347,000

Notes for Vehicles, Furniture & Security System

Vehicles, Furniture & Security System

Description Unit Qty Rs. Total Cost

Vehicles

Carrier Van Each 1 800,000 800,000

Total of Vehicles 800,000Furniture

Executive Table with Side Racks & Chairs Each 1 20,000 20,000

Working Table with Side Racks & Chairs Each 4 10,000 40,000

Visitor Chairs for Executive Each 8 1,500 12,000

Visitor Chairs Each 8 800 6,400

Computer Table Each 1 3,000 3,000

Computer Chairs Each 1 3,000 3,000

File Cabinets Each 1 5,000 5,000

Steel Safe Each 1 15,000 15,000

Air Conditioners Each 2 45,000 90,000

Refrigerators Each 1 25,000 25,000

Total of Furniture 219,400

Security System

Public Address and Paging System 1 100,000 100,000

Total of Security System 100,000

Total 1,119,400


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Notes for DirectCost & Expenses

DIRECT COST & EXPENSES

YearPower, Fuel &

Water

Stores, Spares, Repair

&Maint.General Exp Total

0 0 0 0 0

1 8,000,000 332,750 1,572,000 9,904,750

2 8,240,000 342,733 1,619,160 10,201,893

3 8,487,200 353,014 1,667,735 10,507,949

4 8,741,816 363,605 1,717,767 10,823,188

5 9,004,070 374,513 1,769,300 11,147,883

Notes for Salaries Expenses

Salaries Expenses

Year Salaries & Benefits Total

0 0 0

1 3,648,000 3,648,0002 3,939,840 3,939,840

3 4,255,027 4,255,027

4 4,595,429 4,595,429

5 4,963,064 4,963,064


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Notes for Annual Stores, Spares, Repair & Maintenance

Stores, Spares, Repair & MaintenanceTools & Consumable

Description Qty. Unit Cost Total

Entertainment PointTools LS 100,000 100,000

Equipments LS 100,000 100,000

Total 200,000

Annual Maintenance Cost of Building & Civil Works

Yearly Total Maint.

Description Capital Cost Maint. Cost %age Cost

Entertainment Point 7,928,000 0.75% 59,460

Total 7,928,000 59,460

Annual Maintenance Cost of Plant & Machinery

Yearly Total Maint.


Joyland Park 6,180,000 0.75% 46,350

Total 6,180,000 46,350

Annual Maintenance Cost ofTools, Equipments, Computers & Telephone

Yearly Total Maint.


Entertainment Point 347,000 2.00% 6,940

Total 347,000 6,940

Annual Maintenance Cost of Electric Installations

Yearly Total Maint.


Entertainment Point 4,000,000 0.50% 20,000

Total 4,000,000 20,000

Total 332,750


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Notes forGeneral Expenses

General Expenses

Monthly Annual

Description Charges Charges

Postage & Courier 2,000 24,000

Printing & Stationary 5,000 60,000Fee & Subscription 8,000 96,000

Legal & Professional Charges 10,000 120,000

Entertainment 10,000 120,000

Staff Welfare 5,000 60,000

Travelling& conveyance 5,000 60,000

Vehicle & Equipment Running Expenses * 543,600

News papers & periodical 200 2,400

Publicity & advertisement 40,000 480,000

Safety Gears 500 6,000

1,572,000

* Vehicle & Equipment Running Expenses

Rate per Litter of Patrol in Rs. 75

Rate per Litter of Diesel in Rs. 76

Description No.Litters per

MonthAmount

Carrier Van 1 300 270,000

Generators 200 KVA 1 300 273,600

Total Vehicle Cost of Component 543,600


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Notes for Schedule ofDepreciation

Schedule of Depreciation

Description CostRate in

%ageAmount

Building & civil works 7,928,000


Sub Total 8,050,884 4% 322,035

Plant & Machinery 6,180,000


Sub Total 6,278,880 10% 627,888

Tool, Equipment, Computers & Telephone 347,000

Contingencies 5,379

Sub Total 352,379 20% 70,476

Electric Installation 4,000,000Contingencies 64,000

Sub Total 4,064,000 10% 406,400

Vehicles, Furniture & Security System 1,119,400


Sub Total 1,137,310 10% 113,731

Total 19,883,453 1,540,530


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Assumptions

Project Assumptions

Period of Construction in Years 1

Total Covered Area of Food Service/Souvenir Stalls in Sq. ft 500

Operating Assumptions

No of Working Days in One Year 360

Population of The Target Area in Millions 3

Expected %Age of Population Visiting Per Annum of Total 6%

Revenue Assumptions: Joy Rides

Average Duration of Rides in Minutes 3

Loading-Off Loading Time For Each Ride in Minutes 7

Total No. of Rides Per Hours 6

Virtual Capacity of The Entertainment Point/Day 3,528

Max. No. of Visitors Per Day At 30% of Virtual Capacity 1,058

Average No. of Visitors Expected Per Day 500

Average No. of Visitors Expected Per Annum 180,000Estimated Percentage of Visitors Visiting Weekly 30%

Estimated Percentage of Visitors Visiting Yearly 10%

Estimated Percentage of Visitors Visiting Monthly 60%


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Revenue Assumptions: Others

Monthly Average Rentals Per Sq. ft. In Rs. 50

Total Area of Signboard in Sq ft. 400

Monthly Rentals of Signboards in Sq ft. in Rs. 40

Visitors Entrance Fee in Rs. 20

Average Fee For Rides in Rs. 100

Vehicle Parking Fees in Rs. 20

Growth Rates

Annual Increase in Visitors Entrance Fee 5%

Annual Increase in Vehicle Parking Fee. 5%

%Age Annual Increase in No. of Visitors. 3%

Financial Assumptions

Annual Increment To The Employees in %Age 8%

Expected Increase in Electricity, Water & Gas 3%

Annual Increase in Consumable And Maintenance 3%

Annual Increase in General Expenses Cost Items 3%

Accrued Expense Every Year % of Salaries 10%

Debtor Increase by % of Revenue 9%

Annual Repair & maintenance Cost of Plant & Machinery 0.75%

Annual Increase in Repair & maintenance Cost of Plant & Machinery 3%

Depreciation Rate

Tools, Equipments, Computers & Telephones 20%

Electric Installations 10%

Vehicles, Furniture & Security System 10%

Final Feasibility Report of Entertainment Point

Documents

Transcript of Final Feasibility Report of Entertainment Point