Project report for Paint Shop

Introduction

Over the last few years, India has been experiencing a major growth in paint sales. Increasing levels of income, education and increasing urbanization has helped the paint market to grow considerably. In addition to this, usage of enamel and emulsion paints over traditional white wash, increasing penetration in the rural market and digitalization are also driving the paint industry.  The Indian paint market is expected to grow with over 75000 crore in terms of value for period of FY 2017-18 to FY 2022-23, on account of change in lifestyle, urbanization, and increase level of education, high margin on paint. Overall the paint market is segmented into Organised market and Unorganised market. Major drivers of the paint market are changing customer needs, growth of automobile and infrastructure sector, entry of various Indian and international brands and easy availability of financing options. Along with growth factors there are challenges too such as seasonal demand and competition from unorganised players...

Product / Services & process

 All varieties of colours and some additional stocks for the colour preferences of the people in town  Emulsion is a quick drying, water-based paint, and offers a rich, matte finish ,Enamel is usually applied to busy areas like passages, kitchens etc. since it is easy to clean, This is more expensive than enamel, and provides a smooth, pearl-like finish,Texture paint is used for ‘show walls’& Cement paint is used as an exterior paint owing to its qualities of preventing water penetration and resilience to heat

Market potential & Strategy

Our customers get a feel that are getting a  professional customer service. Knowledgeable salespeople with paint and design experience will keep customers coming back. In-store paint professionals can help customers choose paint colors and suggest accents. In addition to providing advice with every paint sale, a proficient sales staff can increase each ticket with suggestions for add-ons. Sundries such as brushes, rollers, tape and drop cloths can significantly increase your profits. Customers appreciate the time they save because they don't have to return for those essentials tools.  The housing market plays a key role in paint store sales. Relationships with local paint contractors assure a constant stream of business when new home building takes place. Homeowners selling their houses buy paint to spruce up the house for sale and new buyers come to you for paint and decorating products when they purchase a used home. According to the Paint and Decorating Retailers Association, used home sales and new home construction are two of the biggest factors that drive paint store sales...

PROJECT REPORT

Paint Shop

Address

Introduction

Over the last few years, India has been experiencing a major growth in paint sales. Increasing levels of income, education and increasing urbanization has helped the paint market to grow considerably. In addition to this, usage of enamel and emulsion paints over traditional white wash, increasing penetration in the rural market and digitalization are also driving the paint industry.  The Indian paint market is expected to grow with over 75000 crore in terms of value for period of FY 2017-18 to FY 2022-23, on account of change in lifestyle, urbanization, and increase level of education, high margin on paint. Overall the paint market is segmented into Organised market and Unorganised market. Major drivers of the paint market are changing customer needs, growth of automobile and infrastructure sector, entry of various Indian and international brands and easy availability of financing options. Along with growth factors there are challenges too such as seasonal demand and competition from unorganised players. Some other restraints are inventory management at dealer level.

Due to the high displosible income of the people, the paint industry is growing sgnificantly and also the variying products in the industry helps the customer to adapt to the changing environmental issues in Kerala. The paints like reducing heat, waterproof etc ate highly acceptable. At th same time the bombarding marketing activities by the paint manufacturers help the user to create the prouct brand name in there mind and that helps the customer in persuading to buy the product.

Product / Services & process

 All varieties of colours and some additional stocks for the colour preferences of the people in town  Emulsion is a quick drying, water-based paint, and offers a rich, matte finish ,Enamel is usually applied to busy areas like passages, kitchens etc. since it is easy to clean, This is more expensive than enamel, and provides a smooth, pearl-like finish,Texture paint is used for ‘show walls’& Cement paint is used as an exterior paint owing to its qualities of preventing water penetration and resilience to heat

Market potential & Strategy

Our customers get a feel that are getting a  professional customer service. Knowledgeable salespeople with paint and design experience will keep customers coming back. In-store paint professionals can help customers choose paint colors and suggest accents. In addition to providing advice with every paint sale, a proficient sales staff can increase each ticket with suggestions for add-ons. Sundries such as brushes, rollers, tape and drop cloths can significantly increase your profits. Customers appreciate the time they save because they don't have to return for those essentials tools.  The housing market plays a key role in paint store sales. Relationships with local paint contractors assure a constant stream of business when new home building takes place. Homeowners selling their houses buy paint to spruce up the house for sale and new buyers come to you for paint and decorating products when they purchase a used home. According to the Paint and Decorating Retailers Association, used home sales and new home construction are two of the biggest factors that drive paint store sales. By providing local advertisement in channels and by providing newspaper inserts, we can attract a large chunk of people.

Project at a glance

Name & Address of Unit

Paint Shop

Address

Details of unit
Email : 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)
Name : Your name
Address : Address
Phone : 000000
Date of birth :
Designation : proprieter
E-mail : youremail@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 Stands and racks *******
2 Preliminary expenses *******
3 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 Sales ******* X 6600 liter *******
Total *******

Total Yearly Expense

Sl. no Item Amount Rs
1 Staff *******
2 Electricity *******
3 Office expense & utilities *******
4 Stock purchase *******
5 Wages *******
6 Marketing/Advertisement *******
Total *******

Application of Fund

Sl. no Item Subsidy % No. Rate Amount Rs
1 Stands and racks ******* 1 ******* *******
2 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.

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