I.

PROJECT REPORT FOR THE ENTRENEURSHIP

i) NAME OF THE ITEM-SIMRAN SUPER MART STORE
ii) Name of the units and addressiii) Telephoneiv)Name of the promoterConstitution of the firmQualificationsFAMILY BACKGROUND- BUSINESSMAN
PROPOSED LOCATION- AMBIENCE MALL, GURGOAN

II.ECONOMIC VIABILITY AND MARKETIBILITY:

SIMRAN SUPER MART STORE is an online grocery store
that will deliver day-to-day items at the doorsteps of the
customers. The idea of the online store came into inception

because of the busy life style of the urban nuclear families.

The customers can order anything available in the store
through the Internet.
SIMRAN SUPER MART STORE is the first of its kind in the
country. There has never been a local Internet site that deals
with day-to-day items. The closest things to its competitors
are the physical grocery store and departmental stores.
We will be the first company that will guarantee delivery
within one hour. Its like flipkart, which delivers goods but
also lets the customers to choose the products they want on
the internet. Our main customers are the working class
people living in a nuclear family. These are the people who
have a busy schedule and they don't have time to go for
shopping for the daily use products such as groceries. The
number of working class women is getting larger due to the
changing lifestyle. They don't have time to go and search for
these things. Our service will benefit our customers such
that the time they saved for shopping for these products shall
be utilized to spend more time with their family and kids. So,
we intend to focus those nuclear families and provide our
service to their door steps in an affordable price.

Also our night service focuses on the parties at home. Due to

the degrading security system and limited night life in
gurgaon, people are encouraged to organize parties
at home. So, we grasp this opportunity to provide our
service to those groups.
The total market demand for the 23 products that SIMRAN
SUPER MART STOREis going to deal with is Rs. 718693920
per year. Our service is the first of its kind in the country and
we intend to take advantage from this. However it is also
worth nothing that because our product is a new one people
will not know that much about it at first. The most
economical promotional measure in this case is door to door
advertising. The most use of our service can become a
permanent member and can get special discount, privilege
product delivery, use of pamphlets and brochures will be the
secondary promotional measures. The company is also
planning to advertise in local FM stations a few times in a
month.

LOCATION
SIMRAN SUPER MART STOREwill focus only one heavily
populated area of the Gurgoan(MG Road) in the first five
years of year of establishment. The service will be extended
to other areas of the Gurgaon after 5 years and within 10
years the service will be extended to the whole of the city.
The suppliers are also located in the valley Gurgaon.

MARKETIBILITY AND TECHNICAL FEASIBILITY

The urban population having average purchasing power and
fast-paced life-style mainly consumes these ready to use
products. Thus the market areas for the product are the
areas where these families are located.

SALES FORECAST
Year

Sales Forecast (in

%)

First year

48

Second year

60

Third year

80

Fourth year

100

Fifth year

100

SELLING PRICE

The selling price of our product will be calculated using the

"Cost-Plus-Method".A summary of products and their
selling price is given by the table below:
Products

Selling price/unit

Snacks:
1. Lays

40.5

2. Dry Meat

45.36

3. Dalmot

15.25

4. Peanuts

150.15

5. Cheese Balls

10.52

Milk

23.22

Groceries:
1. Green Leaves

9.35

2. Cauliflower

29.27

3. Potato

64.35

Frozen Meat:
1. Buff Sausage

117.03

2. Chicken Sausage

140.44

Cold Drinks

21.07

Cigarettes

99.48

Fruit Juice:
1. Real Juice

21.07

2. Frooti

21.04

3. Rio

21.07

Alcohol/Beer/Wine
1. Royal Stag

168.53

2. Blue Riband

136.92

3. Ruslan Vodka

158

4. Tuborg Beer

181.42

5. Sanmiguel

181.41

6. Carlsberg

200.13

7. Red Wine

737.36

PRODUCTION PLAN AND FINANCIAL FORECAST

There will be no production involved in the business. The
service process is described as follows:
First the customers will log on to Pasal.com on the Internet.
The list of available goods and their price is provided in the
site. The customer will order the product and click on the
location on the map provided in the site itself along with a
written address. Whenever the system receives an order it
will

place

notification

alarm

to

the

computer

administrator. The computer administrator will in turn notify

the delivery boys about the order. The delivery boys will

collect the ordered items from the store and will deliver the
goods in their motorcycles. The delivery boys will receive
the payment on delivery.

FIXED ASSETS REQUIRED

Fixed Assets Requirement (Production)
Sno.

Fixed

Quantity

Rate

Amount

60000

120000

Assets
1

Motorcycle

Furniture

Refrigerato 1

20000
40000

40000

30000

60000

r
4

Computer
Total

240000

LIFE OF FIXED ASSETS

The life of motorcycle and equipment is 10 years and life of
furniture is 20 years. Thus, the depreciation for equipment
and vehicle is 10% per annum and for furniture is 5%
straight line method is used to calculate the depreciation.
The per annum depreciation expense for production asset is
Rs. 29000 and depreciation expense for office assets is Rs.
800. The annual depreciation expense is Rs. 29800. The per
month depreciation expense for production assets is Rs.
2417. The per month depreciation expense for office assets
is Rs. 67. Therefore the total depreciation per month is Rs.
2484.

Life of fixed assets (Production)

Sno Fixed
.

Assets

Motorcycl

Value

Rat Depreciatio Depreciation/mon

e

12000 10

n per year

th

12000

1000

Furniture

20000 5

1000

83.33333

Refrigerat

40000 10

4000

333.3333

60000 20

12000

1000

29000

2416.667

or
4

Computer
Total

RAW MATERIALS AVAILABILITY

Raw materials are purchased from the wholesalers and
producers.
NUMBER OF LABORERS
There will be two shifts for the delivery boys. Two delivery
boys will be hired for the day and two delivery boys will be
hired for the night. a computer administrator will be hired
for the day. The computer work will be handled by the
owners at night.

PRODUCTION OVERHEAD EXPENSES

Production Overhead
S.No.

Description

Amount (Rs/month)

Indirect Labor

25000.00

Repair

and 1000.00

Maintenance
3

Allowance for food

Electricity

13000.00

and 4500.00

Water
5

Depreciation

4416.67

Fuel

2190.00

Rent

Total (Per Month)

12500.00
62606.67

FORMS OF BUSINESS
The business will be registered under the name "Pasal.com"
as a sole trading private firm. Here the owner will act as
investor as well as Director of the company.

PRE OPERATING EXPENSES

S.No.

Description

Amount (Rs.)

Survey Cost

2,500.00

Registration Cost

5,000.00

System

20,000.00

Development Cost
4

Transportation

2,000.00

Cost
5

Other
Miscellaneous
Expenses

1,000.00

FIXED ASSETS FOR OFFICE MANAGEMENT

The company will not have a big office as such. However
some furniture and equipments will be required for the
efficient running of the managerial functions. Following are
the fixed asset requirement for office management:
Fixed Assets Requirement (Administration)
S.No.

Fixed

Quantity

Rate

Amount

750

3000

Assets
1

Telephone
Sets

Furniture

10000

Total

13000

Depreciation
Life of Fixed Assets (Administration)
S.No.

Fixed
Assets

Value

Rate

Depreciatio
n per year

Telephone

3000

10%

300

Furniture

10000

5%

500

Total

13000

Sets
2

800

The per month depreciation expense for the office

management fixed assets is Rs. 67.

ADMINISTRATIVE EXPENSES
Administrative Expenses
S.No. Description

Amount
(Monthly)

Owner's Salary

30000.00

Depreciation of office equipment 66.67

and furniture

Internet Expenses

5000.00

Communication Expenses

5000.00

Rs

Stationary Expenses

1500.00

Refreshments

5000.00

Amortization

220.92

Administrative Expense/Month

46787.59

Administration Expenses/Year

561451.08

FINANCIAL PLAN
Fixed Capital

Fixed capital = Fixed assets for operations + fixed assets

from office
= 240000 + 13000
= Rs. 253000
Pre Operating Cost
The total pre-operating expense calculated from section 3.5
is Rs. 30,500.00
Thus the total amount required to start the business is Rs.
1011432.95. The calculation for the total project cost is
given below.
Total Project Cost
S.no

Particular

Amount

Fixed Assets

253000

Working Capital

727932.95

Pre-Operating Expenses

30,500.00

Project Cost

1011432.95

FINANCIAL PLAN AND LOAN REQUIREMENT

We have decided to take a loan of Rs. 7, 30,000 from the
bank and the rest are the contribution of the owner.

Loan-Equity Mix
S.n

Particulars

Owners

Loan

Total

Equity

Amount

3000.00

3000.00

Fixed Assets
(Administration)

Telephone Sets

Furniture

Fixed Assets
(Production)

Motorcycle

Furniture

Refrigerator

40000.00

40000.00

Computer

60000.00

60000.00

Working Capital

227932.95

500000.00

727932.95

Pre-operating

30,500.00

Expense

10000.00

10000.00

120000.00

120000.00

20000.00

20000.00

30500.00

Total

281432.95

730000.00

1011432.9
5

Percentage

27.83

72.17

100.00

SECURITY FOR LOAN

Owner has a land at chattarpur, New Delhi; which can be
kept as collateral having market value of Rs. 40,00,000.

BREAK EVEN POINT FOR FIRST YEAR (BEP)

Annual Sales = 4, 56,99,050.25
Annual Variable Cost = Annual direct labor cost + Annual
cost of raw materials
= 2, 72, 000 + 3, 57, 76, 276

= 3, 60, 48, 276

Annual Fixed Cost = Annual Production overhead + Annual

administrative expenses + Annual marketing expenses +
Annual Interest expenses
= 7,51,280.04 + 5,61,451.08 +
1,20,000 + 1,31,400
= 15,64,131.12
BEP % = (Annual Fixed Cost * 100%)/(Annual Sales
Annual VC)
1564131.12
= 4,56,99,050.2536048276.00 X 100
= 16.21%
BEP (Sales Amount) = BEP % * Annual Sales
= 16.21% x 45699050.25
= 7407816.05
The BEP in terms of sales quantity cannot be calculated for
multi product costing.

ROE (Return on Equity)

Net profit after tax
ROE = Owner sEquity * 100%
'

3462603.1

= 3744036.05 X 100
= 92.48%