(1) INTRODUCTION

Car Rental Services have a surprisingly significant impact for something so seemingly
innocuous. As well as being an eyesore, next time you are outside, have a look around -
you'll be amazed at the number of private Taxis and Cars on our streets .
So, now is the time to add more fleet of taxis and cars to the existing private taxis on the
streets and provide good rental services.
Our unit will help in the same by providing car rental services to the customers who have
a car that is temporarily out of reach or out of service”.
The firm will be set up by the name of …….

The office would be located in New Delhi, a city known for more travelers in and around
the city and with most people working in the NCR. The unit will cater to the needs of
customers inside and outside the NCR for traveling, work purposes.

• The cars will have all facilities like A/C, FM music player and GPS of the best
order and to ensure highest standard we would have a well trained drivers for
better safety of our customers.
• We would have wide range of products ranging from Indica, Tavera, Ambassador
and Esteem.
• Any other requirements and specification of the customer will be provided by our
supporting agencies like for luxury cars and for buses and coaches.
• There would be no compromise on the quality of the cars used for the traveling
purposes by our customers.

Name of Company :
Promoters:
Company address: 448/2, Kanti Nagar, New Delhi
Type of business: Private limited Company
Duration of the report: 2009-13
OBJECTIVE OF THE PROJECT

1. To serve people who have a car that is temporarily out of reach or out

of service.
2. To provide the best car rental services in india for the travelers who

wish to elevate their complete travel experience by traveling through

car of their own choice

RATIONALE AND SCOPE OF THE PROJECT

RATIONALE:

• The car rentals would be provided at very attractive prices.

• We would provide service according to the requirements and specification of the
buyer .
• The cars would be used in offices like BPOs to ferry their employees from home
to office and vice versa and also for people who want for personal use.

So next time, hold you want to go on a small trip with your family members or want a
cab to go to office then use our services and be a part of this growing industry.

SCOPE:
Gradually, with the increase in the demand , we will make efforts towards expanding our
business by adding more fleet of cars. We would further add cars like indigo, ford ikon,
Honda city for our elite class customer and also diversify in the field of renting buses in
the future.
REVIEW OF THE INDUSTRY

Car rental agencies primarily serve people who have a car that is temporarily
out of reach or out of service, for example travelers who are out of town or
owners of damaged or destroyed vehicles who are awaiting repair or
insurance compensation. Because of the variety of sizes of their vehicles, car
rental agencies may also serve the self-moving industry needs, by renting
vans or trucks.

CAR RENTALS

Car hire in British English is a company that rents automobiles for short
periods of time (ranging from a few hours to a few weeks) for a fee. It is an
elaborate form of a rental shop, organized in numerous local branches,
primarily located near airports or busy city areas.

Car rental agencies primarily serve people who have a car that is temporarily
out of reach or out of service, for example travelers who are out of town or
owners of damaged or destroyed vehicles who are awaiting repair or
insurance compensation. Because of the variety of sizes of their vehicles, car
rental agencies may also serve the self-moving industry needs, by renting
vans or trucks.

Car rentals are subject to many conditions, which vary from one brand to
another. The vehicle must be returned in a good condition and must not
exceed a maximum driven distance, otherwise extra fees may be incurred.
Additionally, some companies set up a minimum age for the vehicle driver,
which in some cases is as high as 25, even in countries where the age of
majority is much lower. Recent conditions have utilized GPS technology to
limit maximum speeds or driving to specific regions.
Major car rental companies
• Cendant: Avis - Budget
• Vanguard: Alamo - National
• Dollar-Thrifty: Dollar - Thrifty
• Independents: Auto Europe - Beneluxcar - Hertz - Europcar –
Enterprise - Kemwel - Rent-A-Wreck - Sixt

There was a time in India when the portly Ambassador was India's most
coveted and popular car. The Indian car buyer had to wait for months on end
and even years before he could lay his hands on an ambassador or a Fiat
Padmini, which was usually handed over by nonchalant, supercilious
salesmen. It was the Maruti 800, a product of the Japanese car giant Suzuki
collaborating with Indian carmaker Maruti which became a veritable
watershed in the Indian auto market. It became the small car, which Indian
nuclear middle class families aspired to, it was compact and traffic-friendly,
it also was easily maneuvered through Indian by-lanes and ‘gallis’ with ease.

But now that too is history. India has become one of the world's fastest-
growing car markets with scores of models plying the city roads and
highways, from the home-grown Tata’s and Maruti’s to Volkswagens and
Rolls Royce’s.

Indians have emerged as avid car enthusiasts sporting their prized

possessions as status symbols and speed machines. Foreign car companies
have discovered the Indian consumer as well as the R & D potential in the
Indian technical fraternity and are setting up manufacturing plants right and
left across the country at lower costs.

The growing desire for cars also is a sign that Indian roads are finally good
enough for international cars to ride on. There are many four to six lane
highways in India now and the Golden Quadrilateral, which passes through
New Delhi, Calcutta, Madras and Mumbai proves that the Indian
government takes infrastructure development very seriously.
Millions of Indian families will enter the car boom bracket in the next two
years according to surveys. The auto boom in 2004 was with a 29 per cent
growth rate was followed by a lull in 2005 due to meteoric fuel costs and
more stringent anti-emission policies implemented by the Indian
government. Increasing Auto Loan interest rates from the bank also added to
the slowdown.

But all indicators in 2005 say that household income in India is galloping
towards a double-digit pace and 24 million households should be able to ride
in a new car by 2007.

The Indian automobile market is projected to grow by 7% next year. The

economy is booming and the middle class is getting easy finance schemes to
upgrade to four wheelers from scooters and motorcycles. In post-
liberalization India, backward linkages into the manufacturing of auto
components have enabled many Indian vendors to foray in to core
manufacturing.

Trends in new-age Indian auto industry

The Customer is King:

The most obvious aspect is the proliferation of new manufacturers and the
extension of demand in to all sub-segments like mid-size, premium mid-size
and super-luxury car segments instead of being limited to the small car
segment. The entry of foreign companies and the emerging stiff competition
has enabled the setting up of a firm manufacturing foundation, which are
allowing companies to develop new products from Indian soil.

The Indian government is embarking on setting stringent standards on

emission and safety related parameters for the auto industry and this has in
turn elevated the general standards in a crowded market. Features like anti-
lock braking systems, common rail injection, airbags and tiptronic
transmission are now becoming customary in most mid-size and first-rate
small cars. To speed things up, the average Indian car buyer is increasingly
savvy with his auto-facts and is a highly informed buyer, networked via the
internet and a spate of foreign and local journals and cable channels keeping
him up to speed on the what, when, where and why of the auto world.
CAR RENTAL COS ADOPT NOVEL WAYS TO LURE CUSTOMERS

Renting a car is no longer about just plain hiring a cab. With more and more
international players jumping into this fast-growing business, car rental
companies are coming up with innovative strategies ranging from packages
targeted at women to promoting the self-drive concept to even auctioning
rent-a-car packages online to push sales.

Rental packages

European rentals major Sixt, for instance is planning to auction car rental
packages online starting at Re 1 in addition to marketing pre-paid vouchers
for both in-bound and outbound travelers. They have tied up with leading
travel Web sites for auctioning the packages.

In addition, with the popularity of travel Web sites increasing, we are

increasingly leveraging upon these tie-ups to offer facilities such as airport
transfers.

According to estimates, over 5000 air tickets are booked daily on the top
domestic travel Web sites. Sixt is also planning to market rentals packages
for lady corporate travellers, which among other safety/convenience features
provides lady chauffeurs.

Self-drive biz

Meanwhile, with the concept of weekend getaways gaining popularity, car

rental companies are increasingly betting on the self-drive business as well.
Sixt would be focusing on Goa and Kochi for its self-drive business.

Sixt, which is rapidly expanding its presence across the country, is targeting
its fleet to over 5,000 cars over the next 18-20 months.
So customers will be able to walk into Hertz offices and drive away with a
car of their choice. Self-drive is what distinguishes a taxi service from a car
rental company. World over Hertz is the largest car rental company and we
plan to make it the number one in India. The company will invest Rs 225
crore (Rs 2.25 billion) over the next three years to buy vehicles and the
infrastructure to back it. Talks are on with a financial institution for the cash.

Hertz has its route map clearly charted out. It's looking at four major areas --
chauffeur-driven cars for corporates, travel desks at hotels, self-drive and
fleet management. In 2002, Hertz conducted a survey and found that around
150,000 cars were registered as taxis. The industry is estimated to be around
Rs 3,000 crore (Rs 30 billion). Of this only around 10 per cent is organised
and includes around 20 players across the country. The big names are Avis,
which has tied up with the Oberoi Hotels, Travel House, which has a tie-up
with ITC WelcomGroup Hotels, and Orix, which has a tie-up with IL&FS.
Most of the other players treat car rental as a secondary business meant to
promote another business.

Hertz also plans to cater to small and medium enterprises and professionals.
It initially plans to strike deals with companies with which it already has a
working relationship. Currently, Hertz provides chauffeur-driven cars to
nearly 400 companies including IBM, Sony, KPMG, Compaq, etc.

Hertz is looking at customers who feel a driver is a hindrance and he divides

customers into three different types. One is the fuel-conscious customer who
hires a car to go on a holiday with his family and would like a fuel-efficient
car. Second is a person who may be driving an Ikon or Esteem, but would
like to try an SUV. Thirdly, there's the person who may on special occasions
like to go all out and drive a Mercedes or some other luxury car. Around the
world Hertz has agreements under which vehicle manufacturers buy back
cars. In India too it has similar deals and the manufacturers buy back cars
after three years. It has taken Hertz a long time to get into high gear. Now
it's getting ready to move at high speed.
A. PRODUCTS AND THEIR SPECIFICATIONS

AMBASSADOR (Standard Car) (Non Air

Conditioned) Spacious, safe and good
value for money and most popular car
used by tourists.
Passengers : 4 (Including Driver)
Luggage : 4 (Incl. roof top carrier)
(Air Conditioned) Spacious, safe and
good value for money and most popular
car used by tourists. Passengers : 4
(Including Driver) Luggage : 4 (Incl. roof
top carrier)

TATA SAFARI (4X4) (6 seater / suv)(Air

Conditioned)India's best 4 wheel drive and
safest vehicle with dual air-conditioning
and is most suitable for small group and
families.
Passengers : 6 (Including Driver)
Luggage : 3 (Incl. roof top carrier)
TATA SUMO (6 seater standard)(Non-
Air Conditioned)India's best 4 wheel drive
and safest vehicle most suitable for small
group and families
Passengers : 6 (Including Driver)
Luggage : 5 (Incl. roof top carrier)
TATA INDICA (Standard Car)(Air
Conditoned) Compact car from Tata's, one
of the most experienced automobile
manufacturers in India. Passengers : 4
(Including Driver)
Luggage : 3 (Incl. roof top carrier)

MITSUBISHI LANCER (Luxury Car)

(Air Conditioned)Most Successful car in
its class in India manufactured by
Japanese car manufacturers Mitsubishi
Motors. Passengers : 4 (Including Driver)
Luggage : 3 (Incl. roof top carrier)

TOYOTA QUALIS (6 seater) (Air

Conditioned) By Toyota Japan offers best
A/c and comfort in its class.
Recommended for small groups or large
family.
Passengers : 6 (Including Driver)
Luggage : 5 (Incl. roof top carrier)(Air
Conditioned)
TOYOTA QUALIS (8 seater)
By Toyota Japan offers best A/c and
comfort in its class. Recommended for
small groups or large family.
Passengers : 8 (Including Driver)
Luggage : 5 (Incl. roof top carrier)
Chevrolet Tavera
Manufacturer - General Motors India
Ltd. Engine-
Power- 2.6L Direct Injection Turbo Diesel
Number of cylinders 4, inline, traverse
mounted
Piston Displacement 2489 cc
Max. Power 84 PS @ 3800 rpm
Max. Torque 18 Knm @ 1700 rpm
Dimensions - Length 4335 mm
Width 1690 mm
Height 1775 mm
Ground Clearance 194 mm
Boot Space: Four normal size suitcase

Toyota Innova
Manufacturer - Toyota Kirloskar Motors
Ltd.
Engine- No. of Cylinders - 4 cyls.in-line,
Diesel Displacement(cc) - 2446 CC
Maximum Power(bhp/rpm) - 75 bhp /4200
rpm
Maximum Torque(Kgm/rpm) 15.4 kgm /
2400 rpm
Dimensions: Overall Height(mm) 1880
mm
Overall Length(mm) 4425 mm
Overall Width(mm) 1655 mm
Ground Clearance(mm) 178 mm
Kerb Weight 1540 kg
Boot Space : In Build Covered Carrier at
the roof with a capacity of 7-10 Normal
size Bags/ Suit cases
B. USES OF THE PRODUCT

1. Official Purpose

The cars would be used to give pick-up and drop service for the
employees working in BPOs and other companies from their home to
their place of work and vice versa.

2. Peronal Purpose

The cars would also be used by customers for their personal use like
going on a short trip with the family and requiring our services.

C. SUPPORTING AGENCIES

FOR CARS: -

 DEV TOURS AND TRAVELS, GURGAON

 DHANOA TOURIST TAXI SERVICE, NEW DELHI

FOR BUSES: -

 NANDA TOURS AND TRAVELS , NEW DELHI

D. OFFICE SIZE

The total land area available = 300 square meter

Out of which the covered area = 100 square meter.
And, free space=200 square meter. (for parking cars)

ROOMS AREA (square meter)

OFFICE 50
ACCOUNTS 10
STORE (FOR SPARE PARTS, ETC) 20
RESTROOM, DRINKING WATER 20

Total 100

E. OFFICE LOCATION

Our office is located in Kanti Nagar in Shahadra , New Delhi. The raw
material will be made available mainly from best spare parts providers in
Delhi. Raw material will be ordered from the local parts provider in case of
urgency while from the respective service stations when high quality part is
required.
F. ESTIMATE OF LABOUR REQUIREMENT

Providing car rentals requires high amount of driving skills on the part of driver and also
requires good amount of visual power. The cars that are used in providing the service are
also not fully automatic and require human efforts to perform the required operation.
The estimated amount of labour requirement is:

Type NO. SALARY

Manager 2 20000
Deputy Manager 1 5000
Drivers 10 40000
Other clerical staff 1 4000

G. ESTIMATE OF CARS TO BE USED

Type No Price Total

Indica 4 350000 1400000
Tavera 2 550000 1100000
Ambassador 2 250000 500000
Esteem 2 400000 800000
3800000
A. MARKET DESCRIPTION

This industry comprises establishments primarily engaged in furnishing

travel information and arranging tours, transportation, rental cars, and
lodging for travelers.

Travel agents have been significantly affected by two factors in the early
2000s. First, travelers are increasingly using the Internet to book their travel,
bypassing traditional agents. Second, the terrorist attacks of September 11,
2001 brought all travel—both business and leisure—within the United States
to a screeching halt. In the aftermath of the attacks, security concerns and a
depressed economy left agents with few customers.

Just as travel agents were looking for consumers to regain confidence in the
safety of travel and as the economy showed the first signs of recovery, the
United States entered into the Second Persian Gulf War in early 2003, once
again leaving Americans feeling the need to stay close to home.

Although experts agree that the economy as well as the travel industry will
eventually rebound, even if consumers overcome their cautionary feelings
regarding air travel, the future role of travel agents is made murky by the
every-growing use of the Internet to plan and book travel arrangements.

Agents will also have to deal with less-than-perfect relations with airlines,
cruises, and tour groups—all of whom are themselves struggling to stay
afloat.
B. DISTRIBUTION CHANNELS

Distribution channels are different types and and we may adopt any one type
a combination of or all the types of the distribution channels. All this
depends on the type of services being provided by the us. The levels of
channels will be:

1) Single level channel : here the service would be directly distributed to

the consumers.
2) One level channel: it implies a single where only type or category of
middlemen is used. For example we may use the service of our support
agencies for other cars and buses. There is only one intermediary
between the service supplier and the service user:

The following diagram gives the various options for using one level channel:

Travel Agent

Supporting Agent
SERVICE SERVICE
SUPPLIERS USERS
Tour operator

Corporate Travel
Department
C. SELECTION OF CHANNELS AND INTERMEDIARIES

Channel decision involves long term commitment and cost for the principal
suppliers.
In this regard the time and cost are highest as compared to any other
marketing decision. Thus level of channels’ selection and selection of
intermediaries are a very critical to the success of an enterprise. The
following factors play important role in these decisions:

 Access to end user,

 Prevailing distribution practices,
 Revenue : Cost Analysis,
 Degree of control desired,
 Availability of channel participants,
 Capability of channel participant,
 Geographical coverage desired,
 Market standing of the channel participant, and
 Financial status of the channel participant, etc.

Level of channels, selection of channel member’s etc. can give results only
when smooth and professional relation with intermediates are developed and
maintained. For example the percentage of commissions or royalties mode
of payment, credit time etc. are decide at the initial stage it self. It is also
advisable to have contracts agreements signed in this regard.

“The decision to use middle man involves the organisation in a number of

further decisions. The first is the problem of choosing the best middleman
from the large number who are available.. but might find that a desired
distributor id not willing to accept the assignment. Or the distributor might
handle the product only if given exclusive distribution. Or the distributor
might handle the product only if it receives better financial terms than are
being offered… the organisation must follow this up by carefully
establishing the terms and responsibilities of the distributors.
D. MAJOR CONSUMERS

Our major consumer would be the office goers who are working in BPOs, IT
and Software companies. We would have an agreement with the company
the sample of contract is given at the end of the report.

Other consumers would be the normal public who use car rental services for
going out with their families for outstation trips, etc.

E. COMMERCIAL VEHICLES IN INDIA

All motorised road vehicles are tagged with a licence number in India. The
licence plate number is issued by the district-level Regional Transport Office
(RTO) of respective states - the main authority on road matters. The licence
plates are placed in the front and back of the vehicle. By law, all plates are
based on the Arabic (European) script, though many states violate this by
writing the numerals in the local script. Other guidelines include having the
plate lit up at night and the restriction of the fonts that could be used. In
some states such as Sikkim, cars bearing outside plates are barred from
entering restricted areas.

Commercial vehicles such as taxis and trucks have a yellow background and
black text (e.g., DL 1Y 1985). Vehicles belonging to foreign consulates also
have the same yellow and black colouring..

All new motorised road vehicles that come into the market have to adhere to
the new plates, while existing vehicles have been given two years to comply.
Features incorporated include the number plate having a patented chromium
hologram; a laser numbering containing the alpha-numeric identification of
both the testing agency and manufacturers and a retro-reflective film bearing
a verification inscription "India" at a 45-degree inclination. The numbers
would be embossed on the plate, rather than being painted for better
visibility. The term "India" is to be in a light shade of blue.
F. PERMITS FOR PASSENGER VEHICLES

Taxi permits: Such permits are issued by MLO (AR) Burari for carrying
passengers to various places within Delhi. Fare is charged as per the fare
meter mounted on such Vehicles & as determined by STA. Prevailing fares
are as under:-

a) Taxi-Rs.15.00 for first kilometer and thereafter Rs.5.00 for every

additional kilometer.

b) Maxicabs: Such permit are issued by STA to vehicles carrying passengers

to various parts of Delhi on a fixed route and as per the fare fixed by the
STA. Total seating capacity of such vehicles should not exceed more than 12
excluding the Driver.

TEMPORARY PERMITS : A temporary permit is issued by STA under

Section 87 of Motor Vehicles Act, 1988 to transport vehicle for a limited
period, enabling the vehicle to go out side Delhi for the following reasons:-

a) For the conveyance of passengers on special occasions such as to and

from fairs and religious gatherings, or
b) For the purposes of a seasonal business, or
c) To meet a particular temporary need, or
d) Pending decision on an application for the renewal of a permit.

The applicant has to apply on form P. TEMP. A. DLY/DLZ (ALL India

Tourist Permits cab): This permit is given for motor cabs having seating
capacity of five. The colour of the cabs are permitted as white only. The
applicant for this permit should have an office having telephone at suitable
tourist passengers booking place .The applicant should have authorised
parking place to park these vehicles and adequate financial resources to
purchase the vehicle. The road tax\passenger tax of vehicle is paid at state
borders. DLZ permits are given to luxury cars.
ALL INDIA TOURIST PERMIT (AITP):

This permit is given to luxury buses which have white colour with a blue
ribbon of five centimeters width at the center of exterior of the body and the
word “Tourist” shall be inserted on two sides of the vehicle within a circle of
sixty centimeters diameter. A tourist permit shall be deemed to be invalid
from the date on which the motor vehicle covered by the permit completes 9
years in the case of Motor Cab and 8 years where the motor vehicle is other
than a motor cab, unless the motor vehicle is replaced by another, the latter
vehicle shall not be more than 2 years old on the date of such replacement.
The seating layout shall be two and two or one and two or one and one on
either side, all seats facing forwards. The Vehicles should also have other
facilities like public address system, drinking water, push full back seats,
fans, curtains, a separate driver cabin etc. The applicant has to apply on form
45 & 48 along with other formalities.

G. EXISTING RATES

WITHOUT AC /KM WITH AC/ KM

INDICA 6.5 7.5
QUALIS 8 9
INNOVA 10 11
TAVERA 10 11
TEMPO TRAVELLER 14 15

IN U.P THE TAX IS CHARGED ON PER DAY BASIS

IN PUNJAB ALSO THE TAX IS CHARGED ON PER DAY BASIS
IN HARYANA THE TAX IS CHARGED ON PER KM BASIS
IN H.P THE TAX IS CHARGED ON PER KM BASIS
CASE ANALYSIS OF BPO INDUSTRY
Inefficient vehicle routing, ambiguity over transportation bills, rising
transportation costs, real-time control of vehicles, and pressure to increase
call engagement is affecting the bottom-line of BPO outfits. One solution
they are looking at: vehicle routing optimisation software.

The biggest challenge for BPO is how to arrange the pickup and drop of
4,500 employees who work in 48 shifts in a day. After HR and telecom,
transportation is the third-largest expense head in a BPO outfit, amounting to
17 percent of total expenses and directly impacting its revenues.
Additionally, a cab carrying four to five employees that reports 30
minutes late for duty costs the company $184 (at the rate of $80 per
hour). Factors such as accuracy of employee pickup and drop, on time
reporting and safety of employees ought to be measured by BPOs as they
directly affect the bottomline. For example, the accuracy of employee
pickup and vehicles reaching on time should be 97 percent. Wrong pickups
directly affect revenues.
• Hughes BPO Services prepares a roster (route plan) based on the
employees’ locations that are given to the driver. This process gets
further complicated if an agent falls ill, for then an immediate
arrangement has to be made to pick up another employee as a
replacement. Now consider this: a call centre is expecting calls to
peak at 7 pm because its client has advertised a new scheme in the
papers, and instead of 100 they need 150 agents to handle the call
engagement. An automated vehicle route optimisation solution
completely automates the entire roster plan, then maps the shortest
route the vehicles can take.
• Cab utilisation ratio Cab (vehicle) utilisation was poor in most BPOs
because they have manual vehicle routing systems in place. In an 8-
seater cab, the occupancy was found to be in the range of 2-3 people,
leading to high running costs—Rs 4,000-6,000 per employee per
month. Sharma says, “Ideally, the cab utilisation rate has to be in
the range of 4-5 per cab. BPO firms should look at investing in a
vehicle route optimisation solution if their cab utilisation rate is less
than four.
The routing should be such that there is maximum occupancy with minimum
travel time. Optimise that route The vehicle route optimisation solution
market has come into its own. It is a Rs 2 crore market, with companies
such as Wipro Spectramind, Converges, Dell, Vertex, Hughes and American
Express using these solutions.

At present over 450 BPOs/call centres are operating across the country and
over half a million employees are working in this sector. As nearly 30,000 to
35,000 vehicles are plying on Indian roads to meet requirements of this
sector, transportation is the third major expense area of the BPOs.
 SAMPLE CONTRACT
To,
M/s
Subject:- Hiring of DLY Cars .
Sealed rate quotations are invited for hiring of DLY Cars (as per list
enclosed). If you are interested to undertake the contract on the terms and
conditions specified in para 5 below, you are requested to send you
quotations in sealed cover marked ‘quotations for hiring of DLY Cars. The
sealed cover containing the quotations should be addressed to the
undersigned by the name and sent to Room No. 910, Paryavaran Bhavan,
CGO Complex, Lodi Road, New Delhi – 110003.

2. The quotations should be accompanied with an earnest money Rs.

10,000/- (Rupees ten thousand only) in the form of demand draft of any
nationalized bank drawn in favour of the Pay & Accounts Officer, Company
of Environment and Forests, New Delhi – 110003 without which the
quotations will not be considered . No over-writing is allowed in the
quotations.

3. The quotations will be accepted up to 3.00 p.m. on 5.9.2005 and the same
will be opened at 3.30 p.m. on the same day at R.No. 910, Paryavaran
Bhavan, CGO Complex, Lodi Road, New Delhi – 110 003. An authorized
representative of your firm can remain present at the time of opening of
quotations.
Terms and conditions :-
(i) The firm bill have to provide nos. of DLY Cars and models as per
requirements of the Company for which for quotations are accepted
by the Company.
(ii) In case the firm fail to provide of DLY Cars on a particular day on, the
vehicle will be hired by the Company from the open market from
authorised services taxi stand, the difference between the rate of the
firms accepted by the Company and the market rate on which the
vehicle is hired from the authorised taxi stand will be
recovered/adjusted from the bills of the firm due for payment by the
Company .
(iii) In case of default on the part of the firm to provide requisite number of
cars for more than ten occasions during the contract period, the
contract will be terminated and awarded to another firm at the risk and
cost of the defaulting firm.
(iv) For out station duty the vehicle will have provided at the short notice by
the firms
(v) The successful tenderer will be required to furnish a security deposit of
Rs. 10,000/- (Rs. ten thousand only) within 10 days from the date of
acceptance of his tender. The security deposit shall be in the for of
fixed deposit, receipt drawn on any nationalized bank in favour of Pay
& Accounts Officer, Company of Environment & Forests, New Delhi
– 110003. The security deposit shall be refundable after the successful
completion of the contract.
(vi) The car would be insured in all respects by the firm. In case of any
accident or theft etc. all the claims arising out of it will be met by the
Agency and this Company shall not be liable in any matter
whatsoever
(vii) The car with the Driver would be placed at the disposal of this
Company as and when required. This Company would be free to use
the hired taxi in any manner for carrying officials.
(viii) In case the car provided to this Company breaks down or arrive late,
during the period of hire, the firm will immediately replace it with
another car. In case firm fail to make arrangements, Company will
hire car from market and actual expenses incurred on this account by
Company, will be deducted from the subsequent bill of the firm.
(ix) In case DLY Car do not report in time, a penalty of Rs. 1000/- per day
(8 hrs) per car will be levied on the agency which will be deducted
from the subsequent bill.
(x) DLY Taxis are in good working condition. The firm will keep the car in
neat and the seat covers should be in immaculate condition.
(xi) The DLY Taxis should not be more than two years old in respect of
Diesel and three year old in respect of the petrol.
(xii) The firm should have at least two fixed telephone lines at office
operational 24 hours and all drivers should be equipped with mobile
telephone facilities for proper communication.
(xiii) The decision of the Company shall be final and binding on the firm.
The Company also reserves the right to reject any quotation in full or
in part without assigning any reasons thereof.
(xiv) No dead mileage will be permitted. The meter reading would start from
Paryavaran Bhavan.
(xv) There should not be change in deployment of DLY Taxi and driver
without prior permission of the Competent Authority in the Company.
In case the car/driver is changed without prior permission, no payment
will be made for the same.
(xvi) The Drivers of the DLY Taxi should be well conversant with the Delhi
routes.
(xvii) DLY Taxi should comply all pollution control regulations and norms.
(xviii) Firm should meet all statuary requirements like minimum wages, etc.
Income –Tax, Service Tax, etc. Documents in this regard may be
enclosed with the quotation.

The HOD, MOEF reserves the right to reject any or all the tender without
assigning any reasons thereof.
(_________________)
Transport Head
CONCLUSION
Providing Car Rental Services is a feasible project and has scope for growth.
The key factors that support this statement are:

• The profit margins are quite promising

• The company is capable of repaying its loan within five year of time period and
has a good potential of further expansion and diversification.
 FINANCIALS

Total cost of the project

A. Capital cost of the

project 5912000
B. Working capital requirement 228200

Total (A+B) 6140200

Means of Finance

1. Own capital 2012000

2. Long term loan

For land &
building 2000000
Cars 1900000

3. Short term
loan
Working capital loan 228200

Total (1+2+3) 6140200

Capital cost of the project

A. Land, building & its developments 2000000

B. Cars 3800000
C. Other fixed assets 107000
D. Preliminaries & preoperative
expenses 5000

Total (A+B+C+D) 5912000

Working capital requirement

A. Raw material

Qty Rs/Unit Rs

1. Grease, Coolant , Engine Oil 11 200 2200

2. Car Tracer 10 1500 15000
3. FM Music Player 10 300 3000
4. Ink Catridge 1 1000 1000

TOTAL (1+2+3+4) 21200

B. Salaries & wages/Month No. Rs.

1. Manager 2 10000 20000

2. Deputy Manager 1 5000 5000
3. Clerical Staff 1 4000 4000
4. Drivers 10 4000 40000

14

TOTAL (1+2+3+4) 69000

C. Utilities & Overheads

1. Power Consumption 15000

2. Stationery, postage, telephone,
etc. 15000
3. Repairs & maintenance 3000
4. Traveling & conveyance exp 2000

TOTAL (1+2+3+4) 35000

TOTAL (A+B+C) 125200

Margin money for working capital

money 103000

Working capital for 1 year 228200

Land, building & its develpoment

Land & Building 300 sq. mtrs. @ Rs.4,000 per sq. mtr 1200000
Development Construction 800000

Total 2000000

Cars

No. Rate Total

Indica 4 350000 1400000

Tavera 2 550000 1100000
Ambassador 2 250000 500000
Esteem 2 400000 800000

Total 3800000

Other Fixed Assets

Computer with printer 1 40000 40000

Office Tables 2 6000 12000
Computer Table 1 1000 1000
Executive chairs 2 3000 6000
Visitors Chairs 4 1250 5000
Almirahs & Cabinets 3 10000 30000
Installation Cost of Phone 2000 2000
Electrical, lighting, etc. 25 400 10000
Internet 1000 1000

Total 107000
Income
Statement

1st year 2nd year 3rd year 4th year 5th year
Income

Sales revenue 3800000 4400000 4800000 5400000 6500000

Expenditure

Raw Materials 254400 432480 778464 1479082 2958164

Salaries & wages 828000 910800 1001880 1102068 1212275

Power & fuel 180000 180000 180000 180000 180000

Repairs & maintenance 36000 36000 36000 36000 36000

Traveling
expenses 24000 24480 25704 26989 28338

Stationery, telephone, postage etc. 180000 180000 180000 180000 180000

Miscellaneous expenses 12000 12000 12000 12000 12000

Interest on Long term loan 660512 528409.6 396307.2 264204.8 132102.4

Payment to bank 825640 825640 825640 825640 825640

Depreciation on Cars @
15% 570000 484500 411825 350051.3 297543.6

Depreciation on F & F @ 10% 10700 9630 8667 7800.3 7020.27

Depriciation on Land and Building @

5% 100000 95000 90250 85737.5 81450.63

3681252 3718940 3946737. 4549572. 5950533.

 2 9 9

Net profit/loss 118748 681060.4 853262.8 850427.1 549466.1

255978.8 255128.1 164839.8

Less: Income tax 0 204318.1 4 3 3

597283.9 595298.9 384626.2

Profit after tax 118748 476742.3 6 7 7
Calculation of cost of salaries and wages

Nature of staff Nos. Average salary Annual salary

Amount (Rs.) Amount (Rs.)

1st 2nd
year year 3rd year 4th year 5th year
Manager 2 10000 20000 22000 24200 26620 29282

Deputy Manager 1 5000 5000 5500 6050 6655 7320.5

Drivers 10 4000 40000 44000 48400 53240 58564

Clerical Staff 1 4000 4000 4400 4840 5324 5856.4

Total 69000 75900 83490 91839 101023

100188 110206 121227
828000 910800 0 8 5

Assumption: Increase in salary @ 10% per year as compared to previous year

Calculation of interest on long term loans

1st year 2nd year 3rd year 4th year 5th year

For Land & 200000 160000 120000

building 0 0 0 800000 400000

Interest @ 16% 320000 256000 192000 128000 64000

For 190000 152000 114000
Cars 0 0 0 760000 380000

Interest @ 16% 304000 243200 182400 121600 60800

For
WCR 228200 182560 136920 91280 45640

Interest @ 16% 36512 29209.6 21907.2 14604.8 7302.4

Total 660512 528409.6 396307.2 264204.8 132102.4

Repayment schedule long term loan

Year Loan outstanding Repayment Amount Balance

For Land & 160000

building 1 2000000 400000 0
120000
2 1600000 400000 0
3 1200000 400000 800000
4 800000 400000 400000
5 400000 400000 0

For 152000
Cars 1 1900000 380000 0
114000
2 1520000 380000 0
3 1140000 380000 760000
4 760000 380000 380000
5 380000 380000 0

For WCR 1 228200 45640 182560

2 182560 45640 136920
 3 136920 45640 91280
4 91280 45640 45640
5 45640 45640 0

Assumption: Long term loan payable in 5 years

Calculation of depreciation on
assets

1st 2nd 3rd 4th 5th

Year Year Year Year Year
A. Land & Building

Balance 2000000 1900000 1805000 1714750 1629013

81450.6
Less: Depreciation @5% 100000 95000 90250 85737.5 3

1900000 1805000 1714750 1629013 1547562

B. Cars

Balanc 380000 323000 274550 233367 198362

e 0 0 0 5 4

350051. 297543.
Less: Depreciation @15% 570000 484500 411825 3 6

323000 274550 233367 198362 168608

0 0 5 4 0

C. Furnitur & Fixtures

Balanc
e 107000 96300 86670 78003 70202.7
Less: Depreciation @10% 10700 9630 8667 7800.3 7020.27

96300 86670 78003 70202.7 63182.4

443589. 386014.
Total (A+B+C) 680700 589130 510742 1 5

Cash Flow Statement

1st 2nd 3rd 4th 5
1.) cash flow from operating activites
Net profit before tax 118748 681060.4 853262.8 850427.1
ADD: Depreciation 680700 589130 510742 443589
Interest on loan paid 660512 528409.6 396307.2 264204.8
Operating profit before WCR 1459960 1798600 1760312 1558221
LESS: Increase in stock -21200 -21200 -21200 -21200
Cash generated from operations 1438760 1777400 1739112 1537021
LESS:Income tax paid 0 -204318 -255979 -255128
Net cash from operating activities 1438760 1573082 1483133 1281893

2.) Cash flow from Investing activites

-
Purchase of land & building 2000000 0 0 0
-
Purchase of cars 3800000 0 0 0
Purchase of funiture & fixtures -107000 0 0 0
-
Net cash from Investing activities 5907000 0 0 0

3.) Cash flow from financing activites

Proceeds from owners capital 2012000 0 0 0
Proceeds from long term loan 3900000 0 0 0
Proceeds from short term loan 228200 0 0 0
repayment of loan -825640 -825640 -825640 -825640

Net cash from financing activities 5314560 -825640 -825640 -825640

Net increase in cash (1+2+3) 846320 747442 657493 456252.9

ADD: Cash Equivalents at the beginning of the year 3800000 4400000 4800000 5400000
4646320 5147442 5457493 5856252.9
Projected Balance Sheet for

Source of Fund
1st 2nd 3rd 4th 5th
Capital
201200 201200
Owners Capital 2012000 2012000 2012000 0 0
Secured Loan
LongTerm Loan 3120000 2340000 1560000 780000 0
Short Term Loan 182560 136920 91280 45640 0
Current Liabilities
Profit 118748 476742 597284 595299 384627
Interest on loan 660512 528410 396307 264205 132102
Accounts Payable 0 0 148250 463150 845198
416092 337392
6093820 5494072 4805121 4 7

Application of Fund

Fixed Assets
154756
Land & building 1900000 1805000 1714750 1629013 2
Cars 3230000 2745500 2333675 1983624 1686080
Other Fixed assets 96300 86670 78003 70202.7 63182.4
Current Assets
cash 846320 747442 657493 456254 55903

Inventory 21200 21200 21200 21200 21200

Accounts Receivable 0 88260 0 0 0

416029 337392
6093820 5494072 4805121 4 7

Return on Investment
(R.O.I)
Promoter's Equity 2012000 2012000 2012000 2012000 2012000
Term Loan 4128200 3302560 2476920 1651280 825640

A 6140200 5314560 4488920 3663280 2837640

Net Profit After Tax 118748 476742 597284 595299 384627

Interest Paid to Bank 660512 528410 396307 264205 132102

B 779260 1005152 993591 859504 516729

ROI (B/A) in % 12.69112 18.91317 22.1343 23.46269 18.20982