ASSIGNMENT NO.

COURSE TITLE: PROJECT APPRAISAL AND FINANCING

STUDENT NAME: ABDUL REHMAN

REGISTRATION NO: 58

CLASS: M.COM (8A)

SEMESTER: 4th

DATE OF SUBMISSION: 23-6-2020

TUTOR: PROF. MUZAMMIL MURTAZA

DEPARTMENT OF BUSINESS ADMINISTRATION

UNIVERSITY OF CENTRAL PUNJAB

FAISALABAD CAMPUS
RESTAURANT PROFILE

 Registered Name

PINE & DINE RESTAURANT

 Size of Restaurant

Medium Scale Restaurant

 Products

Food & Beverages

 Banker’s Name

Allied Bank

 Location of Restaurant

Kohinoor plaza,

Jaranwala road ,

Faisalabad.

 OWNER

Abdul Rehman

 The motto of our restaurant is:-

“TO SERVE THE CUSTOMERS AT FAIR PRICE.”
 Slogan
We’re hot and on a roll

3.1 OBJECTIVES OF RESTAURANT

 To provide high quality food to the customers.

 To provide better services to the customers.

 To provide better sitting facility to the customers.

 To provide better environment to the customers.

 To provide better waiting facility to the customers.

3.2 MISSION

The mission of our restaurant is –

Our Mission is to provide fresh, healthy, nutritious and great tasting food at reasonable prices
in a clean, friendly and convenient environment

OUR COMPETITIVE ADVANTAGES

 Give customers high quality foods.

 Serve quickly than the competitors
 Location of restaurant at clean and pleasant environment.
 Serve the customers at a fair price than the competitors
 Use of highest quality, freshest ingredients to make foods.
 Use of the most current state of cooking equipment to ensure quality and
safety in serving the customers.
 Our restaurant provides a clean, comfortable environment especially
suited for families.
3.5 ESTIMATED STAFFS IN RESTAURANT
TOTAL STAFF : 43
MORNING STAFF: 8
AFTERNOON STAFF 17
EVENING STAFF 18

43

STRUCTURE OF OUR RESTURANT

The interior is furnished with antique objects such as framed wooden windows,
antique leather and fabric sofa, tiled floor and wood tables.

Paintings of old Italian cities are placed on the walls. The motif of the brand is a
clapper board. Echoing this, its form is adopted to build the wooden tree
branches spreading across the ceiling. Wood is adopted the main material for this
project. Together with red tiles and brass, it delivers a vintage and yet stylish
feeling. An important trait is the ceiling which is left open to create a spacious
headroom effect
Vertical wooden planks are utilized to build tree branches radiating from the
distinctive wooden tree trunks. It livens up while broadening visual space. The
form of the brand logo is also a key element of the layout. Near the entrance of
the restaurant is a display of grocery products. This follows the old philosophy
of Italian grocery where high quality products are open for customers’ selection.
On the back of the restaurant, an overhead projector is set to play videos of old
movies on a screen from time to time. Sitting on the sofa, visitors can capture a
feeling of watching movies in an old theatre.

PROJECT INVESTMENT
Table 7.2 Start-Up Costs
Amount
Start-Up Expenses (RS)
Graphic Logo and Name Creation 15000
Decoration 500,000
Insurance 100,000
Outdoor Sign Board 20,000
Building Improvements 500,000
Working Capital 10,00,000
Pre-Opening Expenses 100,000
Total Start-Up Expenses 2,231,500

Start-Up Assets  (RS.)

Kitchen Equipment 6,27,550
Food & Beverage Equipment 2,41,000
Electronic Equipment 3,12,950
Furniture 790,000
Computer 25000
Generator 65000
Fire Fighting Equipment 150000
 Inventory 10,00,000
Total Start-Up Assets 3,211,500

Total Required Start-Up Costs Rs.5,443,000

Table 7.3 Source and Use of Funds

Source and Use of Funds (RS)
Sources of Funds
Owners' investments 3,810,100
Bank loans 1,632,900
Other loans 0
Total Source of Funds 5,443,000

EQUIPMENTSIN RESTAURANT

7.1 F & B EQUIPMENTS

ITEM QTY UNIT TOTAL

PRICE COST
(Rs.) (Rs.)
SPOON 20 Doz. 1150 23000
FORK 20 Doz. 1150 23000
KNIFE 10 Doz. 1150 11500
SERVICE SPOON 5 Doz. 1000 5000
SERVICE FORK 5 Doz. 800 4000
SOUP SPOON 5 Doz. 350 1750
LARGE PLATE 6 Doz. 1200 7200
SMALL PLATE 6 Doz. 800 4800
SERVING BOWL 6 Doz. 620 3720
DESSERT PLATE 6 Doz. 540 3240
DESSERT FORK 3 Doz. 550 1650
DESSERT SPOON 3Doz. 450 1350
CUPS AND SAUCERS 4 Doz. 625 2500
TEA SPOONS 2 Doz. 555 1110
MILK POT 20 250 5000
SUGAR POT 20 300 6000
WATER GLASS 80 350 28000
SOUP BOWL 3 Doz. 860 2580
WATER JUG 2 Doz. 3000 6000
SERVICE TRAY 20 725 14500
NAPKIN STAND 5 500 2500
JUICE GLASS (250 ML) 5 Doz. 600 3000
JUICE GLASS (300 ML) 5 Doz. 800 4000
SOUP CUP 4 Doz. 750 3000
CANDLE STAND 20 400 8000
STRAW STAND 10 250 2500
TOOTH PICK STAND 20 300 6000
BOTTLE OPENER 10 150 1500
BUFFET TABLES 5 5000 25000
ROUND TABLES 8 4500 36000
ROUND TABLES ( SMALL ) 20 4000 80000
WOODEN CHAIRS 100 750 75000
TOTAL COST 2,41,000

KITCHEN EQUIPMENTS

ITEM QTY. UNIT TOTAL

PRICE COST
(Rs.) (Rs.)
3 BURNER GAS RANGE 2 17,000 34000
2 BURNER GAS RANGE 6 16,000 96000
BULK COOKER 2 3,000 6000
3 SINK WASH UNIT 2 12,000 24000
WORK TABLE WITH 2 4,000 8000
SHELVES
HOT PICK UP COUNTER 3 5,000 15000
REFRIGERATOR 2 20,000 40000
TOASTER 2 12,000 24000
SANDWICH GRILLER 2 11,500 23000
DEEP FRYER 2 5,500 11000
MIXER / GRIENDER 2 2,500 5000
WATER COOLER 2 32,000 64000
JUICER 2 9,700 19400
DEGCHI (SMALL) 5 125 630
ROUND SPOON 10 80 800
FLAT SPOON 8 70 560
GARBAGE CANS 4 350 1400
STEEL BOX 4 350 1400
LARGE KNIFE 6 100 600
WET MASALA GRINDER 2 700 1400
BUTTER KNIFE 4 95 380
ICE CREAM SCOOPER 4 250 1000
FRY PANS 8 400 3200
KADAI 5 450 2250
SLICER 5 350 1750
KNIVES 10 120 1200
SMALL OVEN 2 4000 8000
TEA / MILK BOILER 2 2,200 4400
MOBILE TANDOOR 4 1,100 4400
DINNING TABLE 10 18000 180000
TOTAL COST 6,27,550

ELECTRONIC EQUIPMENT

Sr. No EQUIPMENT QTY PRICE PER TOTAL

QUANTITY COST

1 TUBE LIGHT 15 200 3,000

2 FANS BIG 10 1500 15,000
3 FANS SMALL 15 1250 18,750
4 BULBS 25 170 4250
5 SALAMANDER 2 7000 14,000
6 WATER COOLER 2 7200 14,400
7 A.C. 4 60000 2,40,000
8 EXHAUST FANS 4 750 3000
9 WEIGHT MACHINE 1 5500 5,500
10 GRILLER 2 1375 2,750
11 OVEN (BIG) 2 6000 12,000
TOTAL COST 3,12,950

FURNITURE

Sr. No EQUIPMENT QTY PRICE PER TOTAL

QUANTITY COST

1 TABLES 25 12000 300000

2 ROUND TABLES 15 10000 150000
3 CHAIRS 150 1500 225000
4 SOFA ( 3 Seats) 20 5000 100000
5 DESK 2 7500 15000
TOTAL 7,90,000

SALARY BUDGET

 FRONT OFFICE BUDGET

Sr. DESIGNATION NO. OF SALAR MONTHL Yearly

No. STAFF Y PER Y PAY PAY
STAFF
1 RESTAURANT 1 50000 50000 600000
MANAGER
2 GATE KEEPER 1 1,8000 1,8000 2,16,000
3 ACCOUNTANT 1 40,000 40,000 480,000
TOTAL 3 16,500 16,500 12,96,000
  KITCHEN DEPARTMENT

Sr. DESIGNATION NO. OF SALARY MONT YEARLY

No. STAFF PER HLY PAY
STAFF PAY
1 EXECUTIVE 1 35000 35000 120000
SHEAF
2 OTHER SHEAFS 7 25000 175000 2100000
3 KITCHEN 4 16000 64000 256000
STEWARD
4 KITCHEN 2 15500 31000 372000
STEWARD
(DAILY BASE)
TOTAL 14 31,800 28,48,000

 FOOD & BEVERAGE DEPARTMENT

Sr. DESIGNATION NO. OF SALARY MONTH YEARLY

No. STAFF PER LY PAY PAY
STAFF
1 F & B MANAGER 1 6,0000 6,0000 7,20,000
2 STEWARD 20 1,6000 3,20,000 38,40,000
3 STEWARD 5 15000 75000 900,000
( DAILY WAGE)
TOTAL 26 455,000 54,60,000

 TOTAL SALARY OF ALL DEPARTMENTS

 Sr. NAME OF DEPARTMENT MONTHLY YEARLY PAY
No. PAY
1 FRONT OFFICE 50,000 600,000
2 FOOD & BEVERAGES 455,000 54,60,000
3 KITCHEN 31,800 28,48,000
TOTAL 91,800 89,92,000

FIXED (INSTALLATION) COST

Sr. PARTICULARS DEPRECIAT AMOUNT

No. —ION (RS.)

(RS.)
1 RENT(80000 PER 9,60,000
MONTH)
KITCHEN COST

2 3 BURNER GAS 3650

RANGE
3 2 BURNER GAS 9600
RANGE
4 3 SINK WASH UNIT 2400

5 WORK TABLE WITH

SHELVES
6 TUBE LIGHT 1233 700

7 FANS BIG 500

8 FANS SMALL 650

9 BULBS 500

10 A.C. 1,800

11 EXHAUST FANS 650

12 WEIGHT MACHINE 6250

13 OVEN 13200

13 GAS CONNECTIONS 200,000

5 TELEPHONE 5,000
CONNECTIONS
6 COMPUTERS 25,000
7 FURNITURE 80000 2,16,000

8 FIRE FIGHTING PLAN 150,000

9 GENERATORS 65,000

TOTAL

FIXED ASSETS

PARTICULARS QTY. UNIT AMOUNT

PRICE (Rs.) (RS.)
3 BURNER GAS RANGE 2 18000 34000
2 BURNER GAS RANGE 6 17000 96000
3 SINK WASH UNIT 2 12000 24000
WORK TABLE WITH SHELVES 2 4000 8000
TUBE LIGHT 15 200 300
FANS BIG 10 1500 15000
FANS SMALL 15 1250 18750
BULBS 25 170 4250
A.C. 4 60000 240000
EXHAUST FANS 4 750 3000
WEIGHT MACHINE 1 5500 5500
OVEN 2 6000 12000
COMPUTERS 1 25000 25,000
FURNITURE 2,16,000
GENERATORS 1 65000 65,000
MOBILE TANDOOR 1 8000 8000
DINNING TABLE 10 18000 180000
BULK COOKER 2 3,000 6000
HOT PICK UP COUNTER 3 5,000 15000
REFRIGERATOR 2 20,000 40000
TOASTER 2 12,000 24000
SANDWICH GRILLER 2 11,500 23000
DEEP FRYER 2 5,500 11000
MIXER / GRIENDER 2 2,500 5000
WATER COOLER 2 32,000 64000
JUICER 2 9,700 19400
DEGCHI (SMALL) 5 125 625
ROUND SPOON 10 80 800
FLAT SPOON 8 70 560
GARBAGE CANS 4 350 1400
STEEL BOX 4 350 1400
LARGE KNIFE 6 100 600
WET MASALA GRINDER 2 700 1400
BUTTER KNIFE 4 95 380
ICE CREAM SCOOPER 4 250 1000
FRY PANS 8 400 3200
KADAI 5 450 2250
SLICER 5 350 1750
KNIVES 10 120 1200
SMALL OVEN 2 4000 8000
TEA / MILK BOILER 2 2,200 4400
EQUIPMENT(SHORT TERM) 55,090
TOTAL COST

DEPRECIATION MACRS
U
s
e
f y y y y y
u e e e e e
l a a a a a
Name Am L r r r r r
of ou if - - - - -
assets nt e 1 2 3 4 5
3 2
4 4 7
30
3 3 . .
0
TUBE 3 5 . 5 6
LIGHT 0 4 2 6 6
1 2 2 1 1
15,
5 7 1 7 3
00 5
FANS 0 0 6 2 8
0
BIG 0 0 0 8 3
FANS 18, 5 1 3 2 2 1
SMALL 75 8 3 7 1 7
0 7 7 0 6 2
 8
.
7
5 5 0 0 5
3
4 9
42 8 1
3
50 4 7 6 9 .
2 6 1 . 8
BULBS 5 5 2 6 5
2 4 3 2 2
24 4 3 4 7 2
0,0 8 0 2 5 6 1
00 0 0 6 4 2
A.C. 0 0 0 8 8
3 2
4 7
3,0
EXHAU 4 3 5 4 5 6
00
ST 0 4 3 . .
FANS 0 0 2 6 6
6 5
WEIGH 3 0
5,5
T 4 5 9 7 3 7
00
MACHI 5 9 9 . .
NE 0 0 2 6 1
1 1
3 1
12,
1 2 1 8 0
00 8
2 1 7 2 6
0
0 6 2 . .
OVEN 0 0 8 4 4
2 4 3 2 2
25,
5 5 6 8 3
00 4
COMP 0 0 0 8 0
0
UTERS 0 0 0 0 5
2 1
4 9
21 2 3 3 8 9
60 5 1 8 1 8 1
00 6 8 1 3 5
FURNIT 0 8 0 . .
URE 0 0 4 2 2
1
65, 6 1 9 7 5
00 4 5 7 3 4 9
GENER 0 0 0 6 8 9
ATORS 0 0 0 8 3
6 5
1 9 5
BULK 6 0 8 1 3
COOKE 6,0 0 8 6 . .
R 00 4 0 0 4 2 2
3 3
3 9 1
34,
BURNE 3 6 4 1 3
00
R GAS 4 1 8 6 4
0
RANGE 1 0 2 9 . .
0 0 0 6 8 8
1
1 8
2
96, 1 1 0 8
BURNE
00 9 7 3 5 5
R GAS
0 6 2 8 9 1
RANGE
1 0 8 2 . .
0 0 0 4 2 2
3 SINK 24, 1 2 4 3 2 2
 7 2
6 1
WASH 00
4 3 4 4 2
UNIT 0
0 2 5 . .
0 0 0 6 8 8
7
1 1 0
7 3 1 8 5
total   6 7 0 8 1
4 6 1 1 4
8 6 3 0 .
  0 4 1 5 6
y
y e
y y y y e a
e e e e a r
a a a a r- -
r- r- r- r- 1 1
6 7 8 9 0 1
2 1 1 1 1
2 9 9 9 9 9
. . . . . .
1 6 6 6 6 8
1 5 5 5 5 4
1
1 9 9 9 9
0 8 8 8 8
5 2 2 2 2 4
. . . . . 9
5 5 5 5 5 2
1 1 1 1 1
3 2 2 2 2
8 2 2 2 2
1 8 8 8 8
. . . . .
8 1 1 1 1 6
7 2 2 2 2 1
5 5 5 5 5 5
3 2 2 2 2
1 7 7 7 7
3 8 8 8 8 1
. . . . . 3
2 3 3 3 3 9
2 7 7 7 7 .
5 5 5 5 5 4
1 1 1 1 1
7 5 5 5 5 7
6 7 7 7 7 8
8 2 2 2 2 7
8 0 0 0 0 2
2 1 1 1 1
2 9 9 9 9 9
1 6 6 6 6 8
. . . . . .
1 5 5 5 5 4
4 3 3 3 3
0 6 6 6 6 1
5 0 0 0 0 8
. . . . . 0
3 2 2 2 2 .
5 5 5 5 5 4
8 3
8 9
4 7 7 7 7 3
. 8 8 8 8 .
4 6 6 6 6 6
1 1 1 1 1
8 6 6 6 6
4 3 3 3 3
2 7 7 7 7 8
. . . . . 2
5 5 5 5 5 0
1
5 7
9 1 1 1 1 0
1 4 4 4 4 8
9 1 1 1 1 4
. 4 4 4 4 .
2 8 8 8 8 8
4 4 4 4 4
7 2 2 2 2
9 5 5 5 5 2
0 7 7 7 7 1
. . . . . 3
5 5 5 5 5 2
4 1
4 9
2 3 3 3 3 6
. 9 9 9 9 .
2 3 3 3 3 8
2 1
5 1
0 2 2 2 2 1
5 2 2 2 2 5
. 2 2 2 2 .
8 7 7 7 7 2
7 3
0 1
7 6 6 6 6 4
5 2 2 2 2 8
. 8 8 8 8 .
2 8 8 8 8 8
1
7 7
6 1 1 1 1 8
8 5 5 5 5 7
. 7 7 7 7 .
8 2 2 2 2 2
5 5 5 5 5 2
6 0 0 0 0 5
3 0 0 0 0 0
6 9 9 9 9 8
5 4 4 4 4 5
. . . . . .
8 4 4 4 4 4

life of project in years 18

Sales Revenue 20,000,000
Operating Expenses 16,032,800
Project Initial Cost 5,443,000
Installation Cost 1,742,133
Net Working Capital
Increase by 1,000,000
Tax Rate 0.40 EBT*tax rate
Increase in revenues
by 0.18
Increase in expenses
by 0.10
 ESTIMATED OPERATING CASH FLOWS
years year-0 year-1 year-2 year-3 year-4 year-5

Initial Cost (5,443,000) - - - - -

Installation Cost (1,742,133) - - - - -
Net Initial Cost (7,185,133) - - - - -
Sales Revenue - 20,000,000 23,600,000 25,960,000 28,556,000 31,411,600
Operating Expenses - (16,032,800) (17,636,080) (19,399,688) (21,339,657) (23,473,622)
Dep - (76,480) (137,664) (110,131) (88,105) (70,515)
EBT - 3,890,720 5,826,256 6,450,181 7,128,238 7,867,463
Tax Rate(40%) - (1,556,288) (2,330,502) (2,580,072) (2,851,295) (3,146,985)
EAT - 2,334,432 3,495,754 3,870,109 4,276,943 4,720,478
Dep - 76,480 137,664 110,131 88,105 70,515
Operating Cash Flows - 2,410,912 3,633,418 3,980,240 4,365,048 4,790,992
Net Working Capital (1,000,000) - - - - -
Net Operating Cash
(8,185,133) 2,410,912 3,633,418 3,980,240 4,365,048 4,790,992
Flow
 year-6 year-7 year-8 year-9 year-10 year-11

- - - - - -
- - - - - -
- - - - - -
34,552,760 38,008,036 41,808,840 45,989,724 50,588,696 55,647,566
(25,820,985) (28,403,083) (31,243,392) (34,367,731) (37,804,504) (41,584,954)
(56,366) (50,094) (50,094) (50,094) (50,094) (25,085)
8,675,409 9,554,858 10,515,354 11,571,899 12,734,098 14,037,526
(3,470,164) (3,821,943) (4,206,142) (4,628,760) (5,093,639) (5,615,011)
5,205,246 5,732,915 6,309,212 6,943,139 7,640,459 8,422,516
56,366 50,094 50,094 50,094 50,094 25,085
5,261,611 5,783,009 6,359,306 6,993,233 7,690,553 8,447,601
- - - - - -

5,261,611 5,783,009 6,359,306 6,993,233 7,690,553 8,447,601

year-12 year-13 year-14 year-15 year-16 year-17 year-18

- - - - - - -
- - - - - - -
- - - - - - -
61,212,322 67,333,554 74,066,910 81,473,601 89,620,961 98,583,057 108,441,362
(45,743,450) (50,317,794) (55,349,574) (60,884,531) (66,972,984) (73,670,283) (81,037,311)
- - - - - - -
15,468,873 17,015,760 18,717,336 20,589,069 22,647,976 24,912,774 27,404,051
(6,187,549) (6,806,304) (7,486,934) (8,235,628) (9,059,191) (9,965,110) (10,961,621)
9,281,324 10,209,456 11,230,401 12,353,442 13,588,786 14,947,664 16,442,431
- - - - - - -
9,281,324 10,209,456 11,230,401 12,353,442 13,588,786 14,947,664 16,442,431
- - - - - - 1,000,000

9,281,324 10,209,456 11,230,401 12,353,442 13,588,786 14,947,664 17,442,431

Explaination of Financial model:-

The life of our project is approximately 18years.The total initial cost of our project is almost
5,443,000 (including total startup expenses and total startup assets) the installation cost of
Fixed assets of our resturant is approximately 1,742,133 and the net initial cost of our project
is 7,185,133
Net initial cost= Initial cost + installation cost
And this will require additional net working capital for 1,000,000 which is required to
maintain assets and run daily operations of our business and this networking capital will
added at the last year of our project because their is no more net working capital is required to
maintain assets because the life of our project is complete and these 1M is considered as
saving of our project at the end .Net operating cash flow for current year is (8,185,133).
Furthermore our first year sale is approximately 20Million which will increase in every year
by 18% and our operating expenses will also increase by 10%.The MACRS 10 years
depreciation method is used for calculation of the depreciation of fixed assets.The 40% tax
rate is used for calculation of Earning after Tax.