Project report for Book store - Stationary shop

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Introduction

Project report for Stationary shop is as follows

Stationery has historically meant a wide gamut of materials: paper and office supplies, writing implements, greeting cards, glue, pencil case etc. With the opening up of the economy, the top, and not only premium products, entered the market while high priced ones are being sold in small, unassuming way-side stores. One thinks of any global brand and it is here. These include designer and status symbol pens, be it Parker, Cross, Mont Blanc or Cartier.

 

Product / Services & process

Stationery has historically meant a wide gamut of materials: paper and office supplies, writing implements, greeting cards, glue, pencil case etc. With the opening up of the economy, the top, and not only premium products, entered the market while high priced ones are being sold in small, unassuming way-side stores. All items for schools, colleges and offices.

 

Market potential & Strategy

he global market in writing instruments is estimated at about USD 38 billion, of which global pen market accounts for nearly USD 30 bn. The Indian market size is relatively small. In terms of quality of pens, India ranks amongst the best in the world, well ahead of even China. However, India's export market is abysmally low at Rs 2 billion, while China exports Rs 50 billion worth of pens every year. Corporate gift segment in India is valued over a billion, growing at 15%. The Indian market consists of around 15 large scale, 100 midsize and 900 small scale manufacturing units. These units have a combined production capacity of over 10 million pieces a day.

About 80% of the revenues of the pen industry in India comes from pens with a price range of upto Rs 15. A small percentage of pens is priced in the range of Rs 100 to Rs 300 and miniscule of the market is contributed by the super-premium segment in which the price tag goes to as high as Rs 100,000 or more. While the market for lower price range (up to Rs 15) is growing at a rate of 7 to 8% annually, the market for pens above that range is growing at 8 to 10%. The rate of growth of high priced writing instruments is much higher - basically because of a small base. There is, nevertheless, in the recent period, a price upgradation in evidence at the low-end. As the market is developing in the new ambience, the products are getting upgraded.

The market is segmented broadly into products required by (a) young students (many of whom depend only on pencils and ball point pens), (b) frequent users (in offices, commercial and public establishments), (c) occasional users (like housewives and literate manual workers). While India's literacy rate is low, all literates do not use ball or fountain pens, if at all, only occasionally. Obviously, the per person usage is limited mainly to (a) and (b) segments. The usage norms differ from function to function; even as it does from one person to another and certainly from one segment to another.

 

PROJECT REPORT

Book store - Stationary shop

Address

Introduction

Project report for Stationary shop is as follows

Stationery has historically meant a wide gamut of materials: paper and office supplies, writing implements, greeting cards, glue, pencil case etc. With the opening up of the economy, the top, and not only premium products, entered the market while high priced ones are being sold in small, unassuming way-side stores. One thinks of any global brand and it is here. These include designer and status symbol pens, be it Parker, Cross, Mont Blanc or Cartier.

Product / Services & process

Stationery has historically meant a wide gamut of materials: paper and office supplies, writing implements, greeting cards, glue, pencil case etc. With the opening up of the economy, the top, and not only premium products, entered the market while high priced ones are being sold in small, unassuming way-side stores. All items for schools, colleges and offices.

Market potential & Strategy

he global market in writing instruments is estimated at about USD 38 billion, of which global pen market accounts for nearly USD 30 bn. The Indian market size is relatively small. In terms of quality of pens, India ranks amongst the best in the world, well ahead of even China. However, India's export market is abysmally low at Rs 2 billion, while China exports Rs 50 billion worth of pens every year. Corporate gift segment in India is valued over a billion, growing at 15%. The Indian market consists of around 15 large scale, 100 midsize and 900 small scale manufacturing units. These units have a combined production capacity of over 10 million pieces a day.

About 80% of the revenues of the pen industry in India comes from pens with a price range of upto Rs 15. A small percentage of pens is priced in the range of Rs 100 to Rs 300 and miniscule of the market is contributed by the super-premium segment in which the price tag goes to as high as Rs 100,000 or more. While the market for lower price range (up to Rs 15) is growing at a rate of 7 to 8% annually, the market for pens above that range is growing at 8 to 10%. The rate of growth of high priced writing instruments is much higher - basically because of a small base. There is, nevertheless, in the recent period, a price upgradation in evidence at the low-end. As the market is developing in the new ambience, the products are getting upgraded.

The market is segmented broadly into products required by (a) young students (many of whom depend only on pencils and ball point pens), (b) frequent users (in offices, commercial and public establishments), (c) occasional users (like housewives and literate manual workers). While India's literacy rate is low, all literates do not use ball or fountain pens, if at all, only occasionally. Obviously, the per person usage is limited mainly to (a) and (b) segments. The usage norms differ from function to function; even as it does from one person to another and certainly from one segment to another.

Project at a glance

Name & Address of Unit

Book store - Stationary 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 : 00000
Designation : Proprietor
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 Building advance *******
2 Furnitures *******
3 Racks and storage *******
4 Electrification *******
5 Preliminary expenses *******
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 *******
9 Working capital loan *******

Annual Sales / Revenue

Sl. no Item Rate Quantity Unit Total Rs
1 Revenue from Sales ******* X 312 Day *******
Total *******

Total Yearly Expense

Sl. no Item Amount Rs
1 Rent *******
2 Salary *******
3 Repairs & Maintanance *******
4 Electricity *******
5 Office expense & utilities *******
6 Raw material purchase *******
7 Marketing/Advertisement *******
Total *******

Application of Fund

Sl. no Item Subsidy % No. Rate Amount Rs
1 Building advance ******* 1 ******* *******
2 Furnitures ******* 1 ******* *******
3 Racks and storage ******* 1 ******* *******
4 Electrification ******* 1 ******* *******
5 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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