KIDS RESTAURANT

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OBJECTIVE
Opening a restaurant for kids, between the age of around 6 to 16years. The restaurant will be located in a posh area of NOIDA which is near to the posh residential societies.

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FUND REQUIREMENTS :-

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For any type of business funds are required. The restaurant that we will start needs an investment of around Rs. 800000. This restaurant, that will be started will be located in an area which is expensive. The management structure will be of a 3 level hierarchical model. For all type of expenses funds are required. Since the business is new so some expenses in fixed assets takes place in the first month only.

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In the months to come, the expenses in the fixed assets will get reduced. But the day-to-day expenses will increase as the number of customers increase. As children are our target customers we will be spending some cash on games station 4/24/12

PLACE
NEED

A HALL IN WHICH AROUND 60 TO 70 PEOPLE CAN BE ACCOMODATED. IN THIS HALL, Click to edit Master subtitle style 1-AREA FOR RECEPTION 2--AREA FOR SERVING CUSTOMER 3--AREA FOR COOKING 4-AREA FOR KIDS GAME BUDGET FOR THIS IS 35,000 PER MONTH.
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MANPOWER

NEED 26 EMPLOYES WHICH INCLUDE3 MIDDLE MANAGER. 2 SUPERVISOR. REST OF LOWER LEVEL WORKERS(WAITER AND CHEF). BUDGET IS 2,00,000 PER MONTH.

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TOP MANAGEMENT

MIDDLE MANAGERS

MIDDLE MANAGER

MIDDLE MANAGER

PRODUCTION DEPARTMENT

FINANCE DEPARTMENT

MAINTAINANCE DEPARTMENT

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2 EMPLOYEES 3 EMPLOYEES

Supervisor

Supervisor

5 CHEFS

11 STAFF S

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RAW MATERIAL

NEED INGREDIANTS ,UTENSILS ACCORDING TO MENU CHART. OTHER EXPENSIS (LIGHTING, FURNITURES) TRANSPORTATION COST BUDGET FOR THIS IS 1,90 ,000 ONLY FOR 1ST MONTH THEN IT WILL REDUCE.

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PROMOTION

ADVERTISING BUDGET 2,00,000 POSTER AT SCHOOL, COACHING CENTRE,SOCIAL NETWORKINGSITES.

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Budget
Budgeting is to: Provide a forecast of revenues and expenditures, that is, construct a model of how our business might perform financially if certain strategies, events and plans are carried out. Enable the actual financial Master subtitlebusiness to be Click to edit operation of the style measured against the forecast.

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Budget helps to aid the planning of actual operations by forcing managers to consider how the conditions might change and what steps should be taken now and by encouraging managers to consider problems before they arise. It also helps co-ordinate the activities of the organization by compelling managers to examine relationships between their own operation and those of other departments. Other essentials of budget include: To control activities. To communicate plans to various responsibility center managers. To motivate managers to strive to achieve budget goals. To evaluate the performance of managers

Need for Budget

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TYPES OF BUDGET
Sales Budget- Sales budget is a functional budget. Production Budget- The production budget is prepared based on the sales estimate incorporated in the sales budget. Purchase Budget-The purchase budget is another functional budget that estimates the purchase requirement of materials utilized in the production process.

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 Cash Budget-A cash budget consolidates all the cash inflows and outflows for the business.The cash budget is also a functional budget. The cash budget helps the business to plan the project purchases as well as to provide for the loan requirements. Master Budget-The overall or master budget summarizes the other functional budgets. Zero Base Budget-An illustration of a long term budget is the Zero base budget. It looks at requirements/ plans anew each year irrespective of project continuity.

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FIXED

FIXED Vs. FLEXIBLE BUDGET FLEXIBLE BUDGET BUDGET

Flexible budget is one which is designed to change in relation to the level of activity attained. Flexible budgets are prepared where the nature of business is such that it is difficult to predict the demand/sale of goods.

A fixed budget is one which is prepared keeping in mind one level of activity. It is defined as one which is designed to remain unchanged irrespective of the level of activity attained.

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PRODUCTION BUDGET

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Theproduction budgetlists the number of units that must be produced during each budget period to meet sales needs and to provide for the desired ending inventory.

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PRODUCTION BUDGET FOR RAW MATERIAL PURCHASE

JAN Units to produce Expense per head(Rs) Total Cost Desired ending inventory Total material need Less opening inventory 6000 50 300000 3500 303500 4500 FEB 7000 50 350000 2900 352900 3500 349400 MARCH 8500 50 425000 2000 427000 2900 424100

Material purchased299000 4/24/12

ASSUMPTIONS
20% inventory is kept at the end Closing inventory of last months is beginning inventory for next month

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LABOUR BUDGET Labour budget

jan
Units to produce time

feb march 6000 7000 8500 0.41 0.41 0.41 2460 81 2870 81 3485 81

Total hours required Wage rate per hour

Direct labor cost 4/24/12

199260 232470 282285

MANUFACTURING BUDGET
Manufacturing overhead budget is a detailed plan showing the production costs, other than direct materialsanddirect labour, that will be incurred over aspecifiedtime period.

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Manufacture

Budget

jan

feb 6000 1 6000 20000 26000 1500

march 7000 1 7000 20000 27000 1500 8500 1 8500 20000 28500 1500

Units to produce Variable overhead rate

Variable overhead cost Fixed overhead

Total mfg. overhead cost Deduct depreciation

Manufacturing overhead - cash

24500

25500

27000

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CASH BUDGET
A detailed plan showing how cash resources will be acquired and used over some specific time period. Cash budgetis composed of four major sections.

The receipts section. The disbursements section The cash excess or deficiency section Thefinancingsection

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CASH BUDGET jan

Beginning cash balance Cash receipts

feb 50000

march 55000 60000 800000

690000

720000

Cash available Cash payments: Materials budget Labor budget Manufacturing OH budget Total cash payments

740000

775000

860000

299000 199260 24500 522760

349400 232470 25500 607370

424100 282285 27000 733385

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INCOME STATEMENT
Income statementis a company'sfinancial statementthat indicates how therevenue(money received from the sale of products and services before expenses are taken out, also known as the "top line") is transformed into thenet income(the result after all revenues and expenses have been accounted for, also known as Net Profit or the "bottom to edit Master subtitle style Click line"). It displays the revenues recognized for a specific period, and thecost andexpensescharged against these revenues, includingwriteoffs(e.g.,depreciationandamortizationof variousassets) andtaxes.The purpose of the income statement is to showmanagersandinvestorswhether the company made or lost money during the period being reported.

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INCOME STATEMENT
Total output total expense s Gross margin Other expenses Net Income 600000 700000 850000
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522760 607370 733385 77240 25000 52240 92630 116615 30000 62630 32080 84535
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BALANCE SHEET
It is a summary of the financial balances of asole proprietorship, abusiness partnershipor acompany.Assets,liabilitiesandownership equityare listed as of a specific date, such as the end of itsfinancial year. A balance sheet is often described as a "snapshot of a Click to edit Master subtitle style company's financial condition.

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Accounts receivable Raw materials inventory Total current assets Property and equipment Building Equipment Total property and equipment

2375000 8400 2894885 75000 180000 255000 3149885

Total assets

Liabilities and Equities Accounts payable Loan Retained earnings

1863515 650000 636370 3149885

Total liabilities and equities

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CONCLUSION
As we segmented our market so that we earn profit by increasing our customers , we are able to do that. As a result of this despite of our restaurant being new it has been able to generate profit. The loan taken can also be paid back & expansion of the restaurant can be projected to take place by the end of 4 quarters.

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THANK YOU
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