Advertising Services.pdf

8/11/2019 Advertising Services.pdf

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A DVERTISING S ERVICES

SERVICE CAPACITY (Value) : Rs. 20,00,000/-

MONTH AND YEAR : July, 2014OF PREPARATION

PREPARED BY : Sh. V. M. JhaDeputy Director (Metallurgy)

1. INTRODUCTIONAdvertisement has become the key instrument for marketing a product. There

are various method of advertisement i.e. through television, newspapers anddisplaying boards at important sites. The advertisement creates awareness amongthe people about the utility of the products which attracts the consumers. The centreproposes to collect the salient features of particular agency and advertise throughdisplay boards in important areas where large number of people gather or commute.

2. MARKET POTENTIALThe market for advertising business depends on overall business scenario of

country. At present India seems to be overcoming from business depression. It isexpected that advertising business will bounce back in years to come.

3. BASIS AND PRESUMPTIONSThis project is made on the basis of the following presumptions:

i. It is assumed that the unit will be viable at 75% efficiency on single shift basisconsidering 6 working days or as per demand of area per week.

ii. The rate of interest in the scheme is taken at 14.0 % for both fixed andworking capital. Due to liberalization and competition among banks, lowerrate of interest is possible in future.

iii. The prices of machinery and equipments are approximate which are rulinglocally at the time of preparation of the project. When a tailor-cut project isprepared the necessary changes are to be made at the local level.

iv. The cost of staff and labor is approximate which is ruling locally at the time

of preparation of the profile. When a tailor-cut project is prepared thenecessary changes are to be made.


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Advertising Services

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4. IMPLEMENTATION SCHEDULEThe project can be implemented in a period of 3 to 6 months by performing

the various activities in a systematic manner and simultaneous application ofvarious common activities as mentioned below:

Preparation of project reports 1st month Essential registration if required 1st month Selection of site 1st to 2nd month Arrangement of finance/loans 3rd to 4 th month Arrangement of rented accommodation 1st to 2nd month Machinery & equipment procurement 3rd to 5 th monthRecruitment of staff & labour 5th month Installation of machinery 5th month Trial presentation to the customers 5th to 6 th month Commercial Design and sales of product 6 th month

5. TECHNICAL ASPECTS

5.1. Process OutlineThe advertising business involves various skills and creativity in making

hoardings as well as devoted expert workers in fixing it. According expert team willbe brought on board to run the business.

5.2. Service Capacity Estimated revenue earned per year: Rs. 20,00,000/-

5.3. Motive Power Total requirement is about 2 KVA.

6. FINANCIAL ASPECT6.1. Fixed CapitalLand & Building: Well-equipped office space of 500 ft 2 in commercial area.

6.1.1. Machinery and EquipmentsS. N. Description of Machine Quantity Amount (Rs)

1. Display board, tools, fixtures & other associatedaccessories

LS 1,50,000

2. Electrical fittings LS 25,0003. Telephone 2 5,0004. Office equipments LS 75,0005. Electrification and installation @ 15% of above 38,250

Total 2,93,250

Preoperative expenses like legal, establishment, traveling, Rs. 25,000

Startup consultancy, telephone, electricity connections, etc.Total Fixed Capital Rs. 3,18,250/-


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6.2. Working Capital (per month)6.2.1. PersonnelS.No. Designation Nos. Salary (Rs.) Total (Rs.)1. Self as CEO/Manager 1 15,000 15,0002. Skilled workers 1 12,000 12,000

3. Semi-Skilled worker 2 9,000 18,0004. Peon cum Helper 1 7,500 7,500

Total 52,500Add perquisites etc. @ 15% 7,875

Total 60,375

6.2.2. Utilities1. Power: 140 units @ Rs. 6.50/unit Rs. 9102. Water: LS Rs. 140

Total Rs. 1,050

6.2.3. Other Contingent ExpensesS. No. Description Value (Rs.)

1 Rent 10,0002 Stationery, Postage, etc. 5003 Transportation 3,0004 Telephone, Fax, etc. 2,5005 Advertisement/publicity 2,0006 Consumable stores like M.S. Sheet, wooden

boards, fixture, MS Angle etc25,000

7 Miscellaneous Expenses 1,000Total 44,000

6.2.4. Total Recurring Expenditure (per month) Rs. 1,05,425/-

6.3. Total Capital InvestmentFixed Capital Rs. 3,18,250

Working Capital (for 3 months) Rs. 3,16,275 Total Rs. 6,34,525/-

7. FINANCIAL ANALYSIS7.1. Cost of Operation (per annum)S.No. Description Amount (Rs.)

1. Total Recurring Cost per year 12,65,1002. Depreciation on Machinery & Equipment including

furniture @ 20%58,650

3. Interest on Total Investment @ 14% 88,834Total 14,12,584


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7.2. Turnover (per annum)Revenue earned by way of service charges for Advertising Rs. 20,00,000/-

7.3. Net Profit (per annum)= Turnover Cost of Operation= Rs. 5,87,417/-

7.4. Net Profit Ratio

= Net profit per year X 100Turnover per year

= 29.4 %

7.5. Rate of Return= Net profit per year X 100Total Capital Investment

= 92.6 %

7.6. Break-even PointFixed Cost (Per Annum) (Rs.)

Rent 1,20,000Total Depreciation 58,650Total Interest 88,83440% of salary and wages 2,89,80040% of other Contingent expenses(Excluding rent & Insurance) 1,63,200

Total 7,20,484

B.E.P

= Fixed Cost X 100Fixed Cost + Net Profit

= 55.1 %

Addresses of Machinery and Equipment Suppliers:All equipments & other consumable stores will be procured from local suppliers.

Documents

Advertising Services.pdf