Project report for second hand bike showroom

Introduction

A used bike business makes profits by selling used bikes. But an extremely important part of this process is the supply chain - buying used cars from previous owners at a price low enough that it can be marked up. To market and operate your used bike business, you need to attract and work with buyers as well as sellers, and think of both as customer groups. The India used two-wheeler market has displayed a strong growth over the five year period from 2013-2018 on account of increasing income of households, immigration of working individuals in search of work or education as well as greater availability of used two-wheelers in the country. The used-two wheeler market in India has underscored a growth of 10% in terms of sales volume over the period 2013-2018. Further, online-automobile portals became a medium through which used vehicles started selling online. The market witnessed the entry of a few organized players which focused on product quality. This encouraged working women and young individuals to look for used vehicles in good conditions...

Market potential & Strategy

 The market for used bike in India is expected to reach a market size of USD 75 billion by 2023, recording a CAGR of 15.2% during the forecast period. The India used bike market has grown at a tremendous pace since the beginning of the 20th century. The main reason for the same has been the emergence of organized players in the market, as these players have taken care of the trust deficit and the plaguing India used bike market since ages. Even a decade back, almost all sales in the India used bike market took place in the unorganized sector. Sellers would palm off substandard products to  buyers, which made a large number of prefer to buy bikes in the circle of family, friends, and acquaintances. The used bike market in India accounts for nearly 3.4 million vehicles per year. But only a minority of used bike sales originate from businesses to consumers and are processed by organized dealers, around 400,000 unit per annum or about 13%. The used bike business is very competitive, but there are opportunities for business people with a knowledge of bike and a way with people...

PROJECT REPORT

second hand bike showroom

Address

Introduction

A used bike business makes profits by selling used bikes. But an extremely important part of this process is the supply chain - buying used cars from previous owners at a price low enough that it can be marked up. To market and operate your used bike business, you need to attract and work with buyers as well as sellers, and think of both as customer groups. The India used two-wheeler market has displayed a strong growth over the five year period from 2013-2018 on account of increasing income of households, immigration of working individuals in search of work or education as well as greater availability of used two-wheelers in the country. The used-two wheeler market in India has underscored a growth of 10% in terms of sales volume over the period 2013-2018. Further, online-automobile portals became a medium through which used vehicles started selling online. The market witnessed the entry of a few organized players which focused on product quality. This encouraged working women and young individuals to look for used vehicles in good conditions. The growth of online advertising, which has fuelled the rise of online classified platforms such as OLX, Quikr, Gaadi.com, Carwale.com, and others have revolutionized the way in which pre-owned vehicles have been sold in the country. There are other platforms that have emerged in the Indian used two-wheeler market which enable buyers and sellers to engage and exchange products in a transparent manner.

 

Market potential & Strategy

 The market for used bike in India is expected to reach a market size of USD 75 billion by 2023, recording a CAGR of 15.2% during the forecast period. The India used bike market has grown at a tremendous pace since the beginning of the 20th century. The main reason for the same has been the emergence of organized players in the market, as these players have taken care of the trust deficit and the plaguing India used bike market since ages. Even a decade back, almost all sales in the India used bike market took place in the unorganized sector. Sellers would palm off substandard products to  buyers, which made a large number of prefer to buy bikes in the circle of family, friends, and acquaintances. The used bike market in India accounts for nearly 3.4 million vehicles per year. But only a minority of used bike sales originate from businesses to consumers and are processed by organized dealers, around 400,000 unit per annum or about 13%. The used bike business is very competitive, but there are opportunities for business people with a knowledge of bike and a way with people. Making a profit in the used bike business requires skills that including the ability to find quality bikes at great prices and the ability to fix bikes and make them more valuable. Focusing on the skills you need to make a living in the used bike business can help you be more more successful.Though the automobile industry is witnessing sluggish sales, the pre-owned car and bike business is growing at 15 per cent and is likely to double its growth in the next four years. The average ownership of an automobile is 4 years. Therefore, a vehicle is usually sold 3 to 4 times in its lifetime. This creates a huge market for the used bike dealer.

Project at a glance

Name & Address of Unit

Used bike showroom

Address

Details of unit
Email : yoouremail@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
Designation : proprietor
E-mail : youremail@gmail.co

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 Router for internet *******
3 Computer *******
4 Printer *******
5 Table *******
6 Chairs *******
7 Electrification *******
8 Preliminary expenses *******
9 Fabrication of tress and grill *******
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 *******

Annual Sales / Revenue

Sl. no Item Rate Quantity Unit Total Rs
1 Sales ******* X 120 Number *******
Total *******

Total Yearly Expense

Sl. no Item Amount Rs
1 Rent *******
2 Office Staff *******
3 Sales man (1) *******
4 Maintanance Charges *******
5 Electricity charges *******
6 Stationary *******
7 Purchase *******
Total *******

Application of Fund

Sl. no Item Subsidy % No. Rate Amount Rs
1 Building advance ******* 1 ******* *******
2 Router for internet ******* 1 ******* *******
3 Computer ******* 1 ******* *******
4 Printer ******* 1 ******* *******
5 Table ******* 1 ******* *******
6 Chairs ******* 1 ******* *******
7 Electrification ******* 1 ******* *******
8 Preliminary expenses ******* 1 ******* *******
9 Fabrication of tress and grill ******* 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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