Project report for Commerce institute

Introduction

The project report  for accountancy institute is as follows

India Accounting Services Market is expected to witness robust growth by 2022, owing to the rising demand of accounting services to ensure effective management across different businesses. Factors such as growing workforce, government initiatives towards creating more employment avenues and increasing start-up culture have propelled the demand for accounting services for individuals as well as companies. The growing demand for payroll services across various companies to ensure proper management will drive the growth of the market during the forecast period. Moreover, the anticipatory arrival of the Goods and Services Tax (GST) is also expected to have a positive impact on the accounting services market as businesses will look towards remodelling their supply chains to take advantage of the new tax structure post-GST. Based on the service type, tax preparation service is expected to dominate the market by 2022 owing to the growing number of new businesses in the country and rising equity markets...

Product / Services & process

At the initial phase, the firm is planning to offer two courses based on accountancy 

  •  BASIC ACCOUNTANCY COURSE
  • ADVANCED ACCOUNTANCY COURSE

 

Market potential & Strategy

The market for the accounting courses are increasing as the GST ,accounting careers were increasing rapidly in India and middle east. The growing business  rapidly expanding startup ecosystem helps the people to think about a career in commerce. There comes the scope of the project. 

PROJECT REPORT

Commerce institute

Address

Introduction

The project report  for accountancy institute is as follows

India Accounting Services Market is expected to witness robust growth by 2022, owing to the rising demand of accounting services to ensure effective management across different businesses. Factors such as growing workforce, government initiatives towards creating more employment avenues and increasing start-up culture have propelled the demand for accounting services for individuals as well as companies. The growing demand for payroll services across various companies to ensure proper management will drive the growth of the market during the forecast period. Moreover, the anticipatory arrival of the Goods and Services Tax (GST) is also expected to have a positive impact on the accounting services market as businesses will look towards remodelling their supply chains to take advantage of the new tax structure post-GST. Based on the service type, tax preparation service is expected to dominate the market by 2022 owing to the growing number of new businesses in the country and rising equity markets. Government initiatives such as the introduction of Make in India and efforts towards Digital India to attract investments from foreign countries is expected to drive the growth of the market by 2022. Industry anticipated to see GR over 2016-2021 due to India’s rapid economic development, the proliferation of digital accounting, and changing business regulations. 

 The proposed project is for starting an Accounting and Financial advanced learning and study centre . Through which we are planning to offer various courses of accounting and financial management for aspiring students and job seekers. At the beginning of the venture, we are planning to offer two courses of accountancy of two months duration and they are Basic Accountancy Learning, Advanced Accountancy and financial management course respectively which will help the candidates on the pursuit of a job and profession in the field of accounting and financial management,  our both courses are recognised and certified . The basic course mainly aim for students who completed any branch of degree or plus two and the curriculum will be more based on giving importance on professional orientation, ie the day to day basic accounting knowledge that needed for any business or job. The advanced course will be mainly focused on exploring and learning new accounting techniques and financial management also which will be more preferable for the Bcom students or graduates from any stream including engineering. The proposed study centre is planning to start at Karunagappally which is one of the main commercial and educational hub in Kollam district. The entrepreneur itself is a financial expert who carries immense experience in the field of finance and accounts and along with that an array of professionally qualified teachers will help the students to make the study more interesting and fruitful. The institute is planning to position it as a student-friendly one where the students will have the freedom to choose the time for the study, which includes evening and night classes for the needed one

Product / Services & process

At the initial phase, the firm is planning to offer two courses based on accountancy 

  •  BASIC ACCOUNTANCY COURSE
  • ADVANCED ACCOUNTANCY COURSE

 

Market potential & Strategy

The market for the accounting courses are increasing as the GST ,accounting careers were increasing rapidly in India and middle east. The growing business  rapidly expanding startup ecosystem helps the people to think about a career in commerce. There comes the scope of the project. 

Project at a glance

Name & Address of Unit

Accountancy Institute

Address

Details of unit
Email : yoremail@gmail.com
Phone : 000
Constitution : Proprietership
Total project cost : *******
Fixed Capital : *******
Working Capital : *******
Total Bank loan : *******
Promoter(s) contribution : *******
Term loan : *******
Working capital loan : *******
Name & address of promoter(s)
Name : Your name
Address : Address
Phone : 00000
Designation : Proprietor
E-mail : yoremail@gmail.com

Project Feasibility Ratio

Debt Service Coverage Ratio (Average) :1.87
Current ratio (Average) :2.63
Year 1Year 2Year 3Year 4Year 5
Current ratio 1.53 2.06 2.62 3.19 3.76
Quick ratio 1.13 1.56 2.10 2.64 3.18
Interest coverage ratio 3.87 5.55 7.00 9.48 14.71
Debt equity ratio 2.863 2.080 1.528 1.020 0.542
TOL/TNW 3.02 1.45 0.79 0.43 0.21
DSCR 1.65 1.86 1.90 1.94 1.97
Gross profit Sales Percentage % 29.23 % 28.54 % 28.18 % 27.86 % 27.50 %
Net profit Sales Percentage % 10.84 % 10.56 % 11.10 % 11.57 % 11.90 %
BEP in % of installed capacity % 49.90 % 27.12 % 27.12 % 27.12 % 27.12 %
BEP in sales of Rs 2,620,800.00 1,840,695.65 1,972,173.91 2,103,652.17 2,235,130.43
Return On Capital Employed 0.26 0.34 0.34 0.33 0.33

Project Feasibility graph

Revenue v/s Expense Expense Splitup
 
Revenue
 
Expense
Net profit Sales % Quick ratio

Project Cost

Sl. no Item Amount Rs
1 Building Deposit *******
2 Projector 2 Nos *******
3 Computer 10 nos *******
4 Chair with Writin Pads 50 nos *******
5 Electrification *******
6 Fabrication & Glass works *******
7 Study Materials *******
8 Working Capital *******
Total *******

 

Working Capital Computation

Sl. no Item Amount Rs
1 Consumables / stock in hand *******
2 Work in progress *******
3 Finished goods *******
4 Working expense. *******
5 Receivables/Sundry debtors *******
6 Payables *******
7 Total working capital *******
8 Own Contribution *******
9 Working capital loan *******

Annual Sales / Revenue

Sl. no Item Rate Quantity Unit Total Rs
1 Revenue From Coorses ******* X 12 Month *******
Total *******

Total Yearly Expense

Sl. no Item Amount Rs
1 Rent *******
2 Faculty Salary *******
3 Electricity Charges *******
4 Provisions *******
Total *******

Application of Fund

Sl. no Item Subsidy % No. Rate Amount Rs
1 Building Deposit ******* 1 ******* *******
2 Projector 2 Nos ******* 1 ******* *******
3 Computer 10 nos ******* 1 ******* *******
4 Chair with Writin Pads 50 nos ******* 1 ******* *******
5 Electrification ******* 1 ******* *******
6 Fabrication & Glass works ******* 1 ******* *******
7 Study Materials ******* 1 ******* *******
Total Investment *******
Total Subsidy *******
Net Investment *******

Means of Finance

Sl. no Item Amount
1 Term Loan *******
2 Working capital Loan *******
3 Total loan *******
4 Term Loan contribution *******
5 Working capital contribution *******

Profitability Statement

Year 1(!*) Year 2 Year 3 Year 4 Year 5
Revenue from operation
Sales ***** ***** ***** ***** *****
Add :
Closing stock 0.00 0.00 0.00 0.00 0.00
Total ***** ***** ***** ***** *****
Less :
Opening stock 0.00 0.00 0.00 0.00 0.00
Stock purchase ***** ***** ***** ***** *****
Salary ***** ***** ***** ***** *****
Repairs and maintenance charges ***** ***** ***** ***** *****
gas ***** ***** ***** ***** *****
ELECTRICITY bill ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Gross profit ***** ***** ***** ***** *****
Less :
Rent ***** ***** ***** ***** *****
Telephone/Postal &internet charge ***** ***** ***** ***** *****
Total ***** 0***** ***** ***** *****
Depreciation ***** ***** ***** ***** *****
Interest on TL ***** ***** ***** ***** *****
Interest on WC ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Profit before tax ***** ***** ***** ***** *****
Income Tax ***** ***** ***** ***** *****
Profit after tax ***** ***** ***** ***** *****

Cash flow statement

Cash Inflow Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
Capital 0.63 0.00 0.00 0.00 0.00 0.00
Subsidy 0.00 0.00 0.00 0.00 0.00 0.00
Termloan ***** 0.00 0.00 0.00 0.00 0.00
Profit before tax with interest 0.00 ***** ***** ***** ***** *****
Increase in WC loan 0.00 0.00 0.00 0.00 0.00 0.00
Depreciation 0.00 ***** ***** ***** ***** *****
Increase in Current liability 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Inflow ***** ***** ***** ***** ***** *****
Cash Outflow
Fixed Assets ***** ***** ***** ***** ***** *****
Increase in Current asset 0.00 0.00 0.00 0.00 0.00
Interest on TL 0.00 ***** ***** ***** ***** *****
Interest on WC 0.00 0.00 0.00 0.00 0.00 0.00
Income Tax 0.00 ***** ***** ***** ***** *****
Decrease in Term loan ***** ***** ***** ***** *****
Drawing 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Outflow ***** ***** ***** ***** ***** *****
Opening balance ***** ***** ***** ***** ***** *****
Net Cashflow 0.00 ***** ***** ***** ***** *****
Closing balance 0.00 ***** ***** ***** ***** *****

Balance sheet

Liability Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
A. Share holders funds
Capital ***** ***** ***** ***** ***** *****
Reserve & Surplus 0.00 ***** ***** ***** ***** *****
B.Non current Liabilities
Termloan ***** ***** ***** ***** ***** *****
C.Current Liabilities
Working capital loan 0.00 0.00 0.00 0.00 0.00 0.00
Account payable 0.00 0.00 0.00 0.00 0.00
Total Liability ***** ***** ***** ***** ***** *****
Asset
A. Non current Assets
Fixed Assets ***** ***** ***** ***** ***** *****
B. Current Assets
Inventory 0.00 0.00 0.00 0.00 0.00 0.00
Trade receivables 0.00 0.00 0.00 0.00 0.00 0.00
Cash and cash equivalence ***** ***** ***** ***** ***** *****
Total Asset ***** ***** ***** ***** ***** *****

Repayment of Term loan

Year Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end
1 1 ***** ***** ***** ***** *****
1 2 ***** ***** ***** ***** *****
1 3 ***** ***** ***** ***** *****
1 4 ***** ***** ***** ***** *****
1 5 ***** ***** ***** ***** *****
| | | | | | |
| | | | | | |
5 56 ***** ***** ***** ***** *****
5 57 ***** ***** ***** ***** *****
5 58 ***** ***** ***** ***** *****
5 59 ***** ***** ***** ***** *****
5 60 ***** ***** ***** ***** *****

Debt Service Coverage Ratio

Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Receipts
a).Net Profit 0.00 0.00 0.00 0.00 0.00
b).Depreciation 0.00 0.00 0.00 0.00 0.30
c).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
Repayments
a).Loan Principal 0.00 0.00 0.00 0.00 0.00
b).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
DSCR 0.00 0.00 0.00 0.00 0.00

Depreciation

Particulars Rate Year 1 Year 2 Year 3 Year 4 Year 5
Building 0.00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Computers/ Printers /Photocopier/Electronic gadget 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Furniture & fixtures 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Racks & storage/Interior works 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new item 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Air-conditioning 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Other investments 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Total less depreciation 0.00 0.00 0.00 0.00 0.00
Total written down value 0.00 0.00 0.00 0.00 0.00

Conclusion

The project as a whole describes the scope and viability of the Trading industry and mainly of the financial, technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good return on capital investment. When analyzing the social- economic impact, this project is able to generate an employment of 5 and above. It will cater the demand of Trading and thus helps the other business entities to increase the production and service which provide service and support to this industry. Thus more cyclic employment and livelihood generation. So in all ways, we can conclude the project is technically and socially viable and commercially sound too.

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