Introduction
The proposed project is for the starting and developenet of the Digital Seva Kendra and Computer peripheral sales and service unit. The Information Technology – Information Technology Enabled Services (IT-ITeS) sector is a field which is undergoing rapid evolution and is changing the shape of Indian business standards. This sector includes software development, consultancies, software management, online services and business process outsourcing.he IT industry is heavily influenced by factors like the global market and sustenance of its rate of growth. The recession in the United States also impacted the IT community in India negatively. This segment is promising and has vast potential, but there are concerns regarding the demand-supply gap, which is widening. Some challenges which the industry is facing are inadequate infrastructure, tax issues and limited preferential access for local firms. China and Taiwan are examples of low cost destinations, and India needs to change its current tax structure so that it can outdo competition from other countries...
Market potential & Strategy
The internet industry in India is likely to double to reach US$ 250 billion by 2020, growing to 7.5 per cent of gross domestic product (GDP). The number of internet users in India is expected to reach 730 million by 2020, supported by fast adoption of digital technology, according to a report by National Association of Software and Services Companies (NASSCOM). Digital payment in India is expected to grow from 32 per cent in 2013-14 to 62 percent in 2017-18 in terms of volume of transactions. More over all Govt: applications, exams, other departmental details can be applied or accessed through e governance or through websites. The demand for an assisted service is increasing day by day and thus the scope is huge.
PROJECT REPORT
DTP work
AddressIntroduction
The proposed project is for the starting and developenet of the Digital Seva Kendra and Computer peripheral sales and service unit. The Information Technology – Information Technology Enabled Services (IT-ITeS) sector is a field which is undergoing rapid evolution and is changing the shape of Indian business standards. This sector includes software development, consultancies, software management, online services and business process outsourcing.he IT industry is heavily influenced by factors like the global market and sustenance of its rate of growth. The recession in the United States also impacted the IT community in India negatively. This segment is promising and has vast potential, but there are concerns regarding the demand-supply gap, which is widening. Some challenges which the industry is facing are inadequate infrastructure, tax issues and limited preferential access for local firms. China and Taiwan are examples of low cost destinations, and India needs to change its current tax structure so that it can outdo competition from other countries.
One of the biggest benefits that the computer and IT industry provides in India is the employment it can generate. Other benefits are export and Foreign Direct Investments (FDI). New markets have opened up in the Middle East, Africa, Eastern Europe, and South and South East Asia. India is now a major destination for IT outsourcing.he IT industry is one which is not limited to software development alone. Technology can be applied in libraries, hospitals, banks, shops, prisons, hotels, airports, train stations and many other places through database management systems, or through custom-made software as seen fit.
Among other sectors, the IT industry has been driving growth for the last decade and more, and has the potential to continue doing so for the next couple of years if shortcomings are met and challenges are faced.
Market potential & Strategy
The internet industry in India is likely to double to reach US$ 250 billion by 2020, growing to 7.5 per cent of gross domestic product (GDP). The number of internet users in India is expected to reach 730 million by 2020, supported by fast adoption of digital technology, according to a report by National Association of Software and Services Companies (NASSCOM). Digital payment in India is expected to grow from 32 per cent in 2013-14 to 62 percent in 2017-18 in terms of volume of transactions. More over all Govt: applications, exams, other departmental details can be applied or accessed through e governance or through websites. The demand for an assisted service is increasing day by day and thus the scope is huge.
Project at a glance
Name & Address of Unit
DIGITAL SEVA KENDRA
Address
Details of unit
| : | youremail@gmail.com | Phone | : | 00000 |
| Constitution | : | Proprietership |
| Total project cost | : | ******* |
| Fixed Capital | : | ******* |
| Working Capital | : | ******* |
| Total Bank loan | : | ******* |
| Promoter(s) contribution | : | ******* |
| Term loan | : | ******* |
Name & address of promoter(s)
|
Project Feasibility Ratio
| Debt Service Coverage Ratio (Average) | :1.87 |
| Current ratio (Average) | :2.63 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 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 | ||||
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Project Cost
| Sl. no | Item | Amount Rs |
|---|---|---|
| 1 | Digital seva Equipments | ******* |
| 2 | Computer | ******* |
| 3 | Photostat Machine | ******* |
| 4 | Inverter | ******* |
| 5 | Furnishing | ******* |
| 6 | 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 | ******* |
Annual Sales / Revenue
| Sl. no | Item | Rate | Quantity | Unit | Total Rs | |
|---|---|---|---|---|---|---|
| 1 | Techinical service | ******* | X | 5220 | Number | ******* |
| Total | ******* | |||||
Total Yearly Expense
| Sl. no | Item | Amount Rs |
|---|---|---|
| 1 | Rent | ******* |
| 2 | Salary | ******* |
| 3 | Repairs | ******* |
| 4 | Electricity | ******* |
| 5 | Stationary | ******* |
| 6 | Wages | ******* |
| 7 | Telephone & internet charges | ******* |
| Total | ******* |
Application of Fund
| Sl. no | Item | Subsidy % | No. | Rate | Amount Rs |
|---|---|---|---|---|---|
| 1 | Digital seva Equipments | ******* | 500000 | ******* | ******* |
| 2 | Computer | ******* | 1 | ******* | ******* |
| 3 | Photostat Machine | ******* | 1 | ******* | ******* |
| 4 | Inverter | ******* | 1 | ******* | ******* |
| 5 | Furnishing | ******* | 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.