Project report for Computer sales & service

Introduction

 Project report for Computer sales & service

Computer sales & service is one of the smartest ideas for the computer savvy people. If you have the knowledge and skill of software and hardware of computer and know how to assemble computers, then computer assembling business is a great opportunity to start your own entity and use your skill to grow your business and earn a luxurious livelihood instead of dedicating yourself for someone else’s benefit. Indian computer industry has registered significant growth in recent years.Hardware business or computer assembly business is growing at a rate of 12-18 % a year in India. Just as mobile phones, computer is also an integral part of daily life.Branded computers are costly and unable to get in customised configuration. If it is getting assembled, it can be availed with required configurtion and cheap rate. Price for brand value and promotion can be reduced in future.

Computers are  now a days used for various applications in day to day life...

Product / Services & process

The products of this unit are assembled computers and its maintanance services. As per the orders of customers, we procure components from branded suppliers and assemble at the unit and install all required softwares and fix it at the premises of the customer. We also supply  all accessories of the computers such as Printers, UPS, Scanners, Camera, Modem, ear phone etc. We offer all post sale services  and also undertake all sorts of maintenance and repair works also.

 

 

Market potential & Strategy

Population of educated youth is growing in India. Quality and methods of education also improves. Computer education is a part of it. More over IT and ITE Industry is much developed in India and extent of internet connectivity is highly improved. 4G has already launged. 5G is expected to launge soon. Hence requirement of computers is increasing rapidly .

The Indian Desktop market which is estimated to be worth Rs.10,452 crore, is divided into Commercial market and Consumer market and the Commercial market accounts for 67% of the total sales. All these branded PC manufacturers along with HCL Infosystems, were in the past selling to corporates, government, business professionals and to some extent the eminent educational institutions. But, recently these companies have started targeting the individual consumers too in order to improve their market shares. Not so long ago, assembled PCs were considered to be the best, value-for-money PCs as against the branded PCs as the branded ones were high priced...

PROJECT REPORT

Computer sales & service

Address

Introduction

 Project report for Computer sales & service

Computer sales & service is one of the smartest ideas for the computer savvy people. If you have the knowledge and skill of software and hardware of computer and know how to assemble computers, then computer assembling business is a great opportunity to start your own entity and use your skill to grow your business and earn a luxurious livelihood instead of dedicating yourself for someone else’s benefit. Indian computer industry has registered significant growth in recent years.Hardware business or computer assembly business is growing at a rate of 12-18 % a year in India. Just as mobile phones, computer is also an integral part of daily life.Branded computers are costly and unable to get in customised configuration. If it is getting assembled, it can be availed with required configurtion and cheap rate. Price for brand value and promotion can be reduced in future.

Computers are  now a days used for various applications in day to day life. A Micro Enterprise unit proposed activity Computer assembling & Sales. For this computer parts will be Purchased from dealer and assembling in the unit. Assembled Computers will be marketed through the distributors appointed by the entrepreneur. The distributor will also inform the needs of the computer through the market survey. As the usage of computers increases day by day, the need of sales and maintananceof that system is also needed. So the demand is on the higher side for the service. 

Product / Services & process

The products of this unit are assembled computers and its maintanance services. As per the orders of customers, we procure components from branded suppliers and assemble at the unit and install all required softwares and fix it at the premises of the customer. We also supply  all accessories of the computers such as Printers, UPS, Scanners, Camera, Modem, ear phone etc. We offer all post sale services  and also undertake all sorts of maintenance and repair works also.

 

 

Market potential & Strategy

Population of educated youth is growing in India. Quality and methods of education also improves. Computer education is a part of it. More over IT and ITE Industry is much developed in India and extent of internet connectivity is highly improved. 4G has already launged. 5G is expected to launge soon. Hence requirement of computers is increasing rapidly .

The Indian Desktop market which is estimated to be worth Rs.10,452 crore, is divided into Commercial market and Consumer market and the Commercial market accounts for 67% of the total sales. All these branded PC manufacturers along with HCL Infosystems, were in the past selling to corporates, government, business professionals and to some extent the eminent educational institutions. But, recently these companies have started targeting the individual consumers too in order to improve their market shares. Not so long ago, assembled PCs were considered to be the best, value-for-money PCs as against the branded PCs as the branded ones were high priced. But, in the recent past, the demand for assembled PCs has come down drastically in comparison with the branded ones. Though more than half (53%) of the Indian PC market is occupied by the unorganized sector (assembled and non-branded PCs), there has not been a considerable improvement in their sales. The major reason for this change in customer preference is that the present day customer is no more looking for low-priced products.

Indian computer industry has registered significant growth in recent years.Hardware business or computer assembly business is growing at a rate of 12-18 % a year in India. Just as mobile phones, computer is also an integral part of daily life.Branded computers are costly and unable to get in customised configuration. If it is getting assembled, it can be availed with required configurtion and cheap rate. Price for brand value and promotion can be reduced in future.

 

 

Project at a glance

Name & Address of Unit

Computer sales & service

Address

Details of unit
Email : youremail@gmail.com
Phone : 00000
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
Designation : Proprietor

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 advance *******
2 CRO *******
3 Other fitting items *******
4 Soldering station *******
5 soldering Iron *******
6 Multimeter *******
7 Screw Driver *******
8 Electrification *******
9 Racks and storage *******
10 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 *******

working capital is calculated taking one month as working cycle. Stock is purchasing on monthly basis.

Annual Sales / Revenue

Sl. no Item Rate Quantity Unit Total Rs
1 Sales of Assembled Computers ******* X 180 Number *******
2 Sale of Accessories ******* X 8400 Metre *******
3 Service of computers ******* X 6600 Metre *******
Total *******

Total Yearly Expense

Sl. no Item Amount Rs
1 Building Rent *******
2 Skilled Workers *******
3 Electricity charges *******
4 Office expenses *******
5 Computer Parts and accessories *******
6 Wages *******
Total *******

Application of Fund

Sl. no Item Subsidy % No. Rate Amount Rs
1 Building advance ******* 1 ******* *******
2 CRO ******* 2 ******* *******
3 Other fitting items ******* 1 ******* *******
4 Soldering station ******* 4 ******* *******
5 soldering Iron ******* 4 ******* *******
6 Multimeter ******* 4 ******* *******
7 Screw Driver ******* 4 ******* *******
8 Electrification ******* 1 ******* *******
9 Racks and storage ******* 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 *******

Own contribution will be deposited in the loan account

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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