PROJECT REPORT
Cellphone repair
Address
Introduction
Project report for mobile sales & services shop is as follows
India is one of the most popular destinations for smartphone companies with as many mobile users as the entire population of the United States. The number of smartphone users in India is estimated to increase to about 442.5 million in 2022. India is the world’s second largest market for smartphone after China. About 134 million smartphones were sold across India in the year 2017. India ranks second in the average time spent on mobile web by smartphone users across Asia Pacific. India has witnessed a huge spurt in mobile phone sales in the past 5 years and this has necessitated the growth of authorized repair centres as part of the standard after sales support for most brands. However, many devices also require repairs or servicing after the warranty period expires. In most cases, the cost turns out to be prohibitive because of the limited inventory of spares carried by most service centers. We, therefore, turn to third-party repair facilities for our mobile device servicing needs. This industry has been largely unorganized so far, with small independent operators that may not have standardized systems, processes, and pricing. The increasing number of users helps to increase the sales of mobile as a gadget and at the same time, the possibility of repairing the phone is also getting very high.
Product / Services & process
We offer smartphones and feature phones of leading brands with maximum offers in place at the same time we have a team of good and charming technicians , who can service & repair damaged smartphones .
Market potential & Strategy
In an era where technology is evolving incessantly, the Mobile phone industry is advancing rapidly in order to keep up with the fast-paced evolution. Since they first came into existence over 30 years ago, mobile phones or smartphones as they are now referred to, have assisted in accelerating progress and improving communication between multiple parties over the years. Owing to its contributions, it is hard to envisage a world without mobile devices, as it is now an integral requisite of our day-to-day life. People now have access to smartphones, which are portable devices with mobile as well as computing integration, through which they can keep in touch with their social circle as well as explore the World Wide Web with just a touch or click of a button. The mobile handset market has progressed over the years due to constant demand for new and technologically advanced devices. Aiding this growing need and demand for mobile phones is another booming sector, the Mobile Repairing Industry. These are the third-party players supporting the smartphone market through its post sales services and expanding their reach manifold over the past few years.More and more individuals can now afford smartphones and with that comes a greater need for mobile repair shops. Since company specific cell phone retail and service centers are sometimes unable to provide adequate post-sales support, many customers opt for local solutions in order to save time and money. In addition to that , the newer models in the market help people to buy new smartphones which are now available at EMI options too, so the future of the business is so viablhe. Along with that , the firm can start pesence in ecommerce sites to make sure the sales are increasing double fold.
Project at a glance
Name & Address of Unit
Mobile shop & service
Address
Details of unit
Email
|
: |
[email protected]
|
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 |
| : [email protected] |
|
|
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
|
|
|
  |
Revenue |
  |
Expense |
|
|
|
Net profit Sales %
|
Quick ratio
|
|
|
|
|
|
Project Cost
Sl. no |
Item |
Amount Rs |
1 |
Building advance |
******* |
2 |
Electronic testing equipents |
******* |
3 |
Hand tools |
******* |
4 |
Aircondition |
******* |
5 |
Racks and storage |
******* |
6 |
Electrification |
******* |
7 |
Preliminary expenses |
******* |
8 |
Interior work |
******* |
9 |
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 |
300 |
Day |
******* |
2 |
Revenue from service |
******* |
X |
300 |
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 |
Wages |
******* |
8 |
Marketing/Advertisement |
******* |
|
Total |
******* |
Application of Fund
Sl. no |
Item
| Subsidy % |
No.
| Rate
| Amount Rs |
1 |
Building advance |
******* |
1 |
******* |
******* |
2 |
Electronic testing equipents |
******* |
1 |
******* |
******* |
3 |
Hand tools |
******* |
1 |
******* |
******* |
4 |
Aircondition |
******* |
1 |
******* |
******* |
5 |
Racks and storage |
******* |
1 |
******* |
******* |
6 |
Electrification |
******* |
1 |
******* |
******* |
7 |
Preliminary expenses |
******* |
1 |
******* |
******* |
8 |
Interior work |
******* |
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 |
15.93 |
***** |
***** |
***** |
***** |
***** |
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 |
7.20 |
***** |
***** |
***** |
***** |
***** |
Salary |
3.60 |
***** |
***** |
***** |
***** |
***** |
Repairs and maintenance charges |
0.24 |
***** |
***** |
***** |
***** |
***** |
gas |
0.12 |
***** |
***** |
***** |
***** |
***** |
ELECTRICITY bill |
0.12 |
***** |
***** |
***** |
***** |
***** |
Total |
|
***** |
***** |
***** |
***** |
***** |
Gross profit |
|
***** |
***** |
***** |
***** |
***** |
Less : |
|
|
|
|
|
|
Rent |
0.12 |
***** |
***** |
***** |
***** |
***** |
Telephone/Postal &internet charge |
0.12 |
***** |
***** |
***** |
***** |
***** |
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.