Introduction
Project Report for electrical shop is as follows:
India electrical switches market is projected to grow at a CAGR of more than 12% by 2023, on the back of increasing number of projects in construction and real estate markets, especially in the residential segment across the country. Owing to the aesthetics of modular switches, strong demand is being witnessed from the residential sector, as more and more people are replacing their old switches with modular switches that complement their wall paints and interior designing. Moreover, supportive government initiatives, rising per capita income and declining prices of modular switches are some of the other factors that are expected to positively influence the electrical switches market in India during forecast period .LED lights are the latest technology in energy efficient lighting. LED stands for ‘Light Emitting Diode’, a semiconductor device that converts electricity into light. India LED lighting market stood at $ 918.70 million in 2016, and is projected to grow at a CAGR of 24...
Product / Services & process
LED Bulb
In the recent past, LED lighting used to be fairly limited with few designs to choose from. With greater advances in the technology, you can now get a range of styles including candles, GLS, golf balls, reflectors, spotlights and tubes. These have varying powers equivalent to everyday incandescent bulbs and can now be found with a variety of fittings including screw and bayonet. The cost too is now comparable with other bulbs and can provide significant savings in electricity bills
Modular switches
Electrical wires
Tubelights, MCB,ELCB etc
Market potential & Strategy
As the lighting and switches are frequently used in the homes, the demand is on the higher side. The shopmore focuses on providing electrical equipmentssuch as eleictric wires, MCBs , tubeights etc. When a new construction is happening, the demand for the products were on the higher side. Also small devices such as small motors, pumpset were also there which having good demand. The shop is mainly planning to make popularity by providing small offers, advertisements in the local television, news paper inserts and as notice papers.
PROJECT REPORT
Electrical shop
AddressIntroduction
Project Report for electrical shop is as follows:
India electrical switches market is projected to grow at a CAGR of more than 12% by 2023, on the back of increasing number of projects in construction and real estate markets, especially in the residential segment across the country. Owing to the aesthetics of modular switches, strong demand is being witnessed from the residential sector, as more and more people are replacing their old switches with modular switches that complement their wall paints and interior designing. Moreover, supportive government initiatives, rising per capita income and declining prices of modular switches are some of the other factors that are expected to positively influence the electrical switches market in India during forecast period .LED lights are the latest technology in energy efficient lighting. LED stands for ‘Light Emitting Diode’, a semiconductor device that converts electricity into light. India LED lighting market stood at $ 918.70 million in 2016, and is projected to grow at a CAGR of 24.66%, in value terms, during 2016-2022, to reach $ 3,758.74 million by 2022, on account of increasing government initiatives to boost LED adoption and growing awareness regarding lower power consumption of LED lighting products. Modular switches expected to garner $1,595.0 million by 2022, registering a CAGR of 22% during the forecast period 2016-2022. All these parameters indicates the smooth and good sales of the product and thus the potential of electrical shop in the region.
Product / Services & process
LED Bulb
In the recent past, LED lighting used to be fairly limited with few designs to choose from. With greater advances in the technology, you can now get a range of styles including candles, GLS, golf balls, reflectors, spotlights and tubes. These have varying powers equivalent to everyday incandescent bulbs and can now be found with a variety of fittings including screw and bayonet. The cost too is now comparable with other bulbs and can provide significant savings in electricity bills
Modular switches
Electrical wires
Tubelights, MCB,ELCB etc
Market potential & Strategy
As the lighting and switches are frequently used in the homes, the demand is on the higher side. The shopmore focuses on providing electrical equipmentssuch as eleictric wires, MCBs , tubeights etc. When a new construction is happening, the demand for the products were on the higher side. Also small devices such as small motors, pumpset were also there which having good demand. The shop is mainly planning to make popularity by providing small offers, advertisements in the local television, news paper inserts and as notice papers.
Project at a glance
Name & Address of Unit
Electrical shop
Address
Details of unit
| : | youremail@gmail.com | Phone | : | 000000 |
| 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)
|
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 | Partition for godown | ******* |
| 2 | Interior decoration | ******* |
| 3 | Vinyl flooring | ******* |
| 4 | Air condition unit 2 ton | ******* |
| 5 | Computer | ******* |
| 6 | Printer | ******* |
| 7 | Counter table | ******* |
| 8 | Chairs | ******* |
| 9 | Electrification | ******* |
| 10 | Preliminary expenses | ******* |
| 11 | 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 | Sales | ******* | X | 3600 | Number | ******* |
| Total | ******* | |||||
Total Yearly Expense
| Sl. no | Item | Amount Rs |
|---|---|---|
| 1 | Shop Rent | ******* |
| 2 | Manager (1) | ******* |
| 3 | Sales man (1) | ******* |
| 4 | Maintanance Charges | ******* |
| 5 | Electricity charges | ******* |
| 6 | Stationary | ******* |
| 7 | Purchase | ******* |
| 8 | Telephone & internet charges | ******* |
| 9 | Transportation | ******* |
| Total | ******* |
Application of Fund
| Sl. no | Item | Subsidy % | No. | Rate | Amount Rs |
|---|---|---|---|---|---|
| 1 | Partition for godown | ******* | 1 | ******* | ******* |
| 2 | Interior decoration | ******* | 1 | ******* | ******* |
| 3 | Vinyl flooring | ******* | 1 | ******* | ******* |
| 4 | Air condition unit 2 ton | ******* | 1 | ******* | ******* |
| 5 | Computer | ******* | 1 | ******* | ******* |
| 6 | Printer | ******* | 1 | ******* | ******* |
| 7 | Counter table | ******* | 1 | ******* | ******* |
| 8 | Chairs | ******* | 1 | ******* | ******* |
| 9 | Electrification | ******* | 1 | ******* | ******* |
| 10 | Preliminary expenses | ******* | 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.