PROJECT REPORT

IT & IT Enabled unit

Pristine Tower, Serene Nagar, New Delhi - 1

 Table of Contents
Table of Contents 2
Project at a glance 3
Name & Address of Unit 3
Details of unit 3
Name & address of promoter(s) 3
Project Feasibility Ratio 4
Project Feasibility graph 5
Introduction 6
Scope of the project 7
Promoter(s) details 8
Product / services & process 9
Plant & machinery / equipments 10
Market potential & Strategy 11
Manpower requirements 12
Risks & Mitigation strategy 13
Project Cost 15
Working Capital Computation 16
Annual Sales / Revenue 17
Total Monthly Expense 18
Application of Fund 19
Means of Finance 20
Profitability Statement 21
Cash flow statement 23
Balance sheet 24
Repayment of Term loan 25
Debt Service Coverage Ratio 28
Depreciation 29
Break Even Point 30
Assumption 31
Conclusion 33

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Project at a glance
Name & Address of Unit

IT & IT Enabled unit

Pristine Tower, Serene Nagar, New Delhi - 1

Details of unit
Email : [email protected]
Phone : 909090
Constitution : Private LTD
Number of employment : 15
Total project cost : 5,192,000
Fixed Capital : 4,192,000
Working Capital : 1,000,000
Total Bank loan : 2,386,400
Promoter(s) contribution : 2,805,600
Term loan : 1,886,400
Working capital loan : 500,000

Name & address of promoter(s)

Name : Your nameion
Address : Your address
Phone 9090
Date of birth : 12/01/1989
Gender : Male
Category : General
E-mail : [email protected]

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Project Feasibility Ratio
Debt Service Coverage Ratio (Average) :2.42

Current ratio (Average) :2.84

Year 1 Year 2 Year 3 Year 4 Year 5

Current ratio 2.05 2.64 2.80 3.20 3.52
Quick ratio 2.05 2.64 2.80 3.20 3.52
Intrest coverage ratio 5.87 4.57 6.85 10.38 13.70
Debt equity ratio 0.566 0.530 0.387 0.253 0.133
TOL/TNW 0.73 0.56 0.44 0.28 0.20
DSCR 2.81 2.01 2.33 2.65 2.27
Gross profit Sales Percentage 50.00 % 42.50 % 43.50 % 44.00 % 42.00 %
%
Net profit Sales Percentage % 8.33 % 3.70 % 5.07 % 6.10 % 5.01 %
BEP in % of installed capacity 83.92 % 64.84 % 64.84 % 64.84 % 64.84 %
%
BEP in sales of Rs 9,000,000.00 9,180,000.00 10,098,000.00 11,107,800.00 12,218,580.00
Return On Capital Employed 781,883.07 1,623,743.94 2,711,354.28 4,086,295.58 5,124,810.45

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Project Feasibility graph
Revenue v/s Expense Expense Splitup

Engineers & SEO

specialist Repairs &
Maintanance Electricity
Other supporting staff Marketing executives
Revenue Office expense & utilities Internet
Expense Marketing/Advertisement
Domain & Hosting annual charge Postage & Telephone

Net profit Sales % Quick ratio

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Introduction
The global sourcing market in India continues to grow at a higher pace compared to the IT-
BPM industry. The global IT & ITeS market (excluding hardware) reached US$ 1.2 trillion in
2016-17, while the global sourcing market increased by 1.7 times to reach US$ 173-178 billion.
India remained the world’s top sourcing destination in 2016-17 with a share of 55 per cent.
Indian IT & ITeS companies have set up over 1,000 global delivery centres in over 200 cities
around the world.

More importantly, the industry has led the economic transformation of the country and altered
the perception of India in the global economy. India's cost competitiveness in providing IT
services, which is approximately 3-4 times cheaper than the US, continues to be the mainstay
of its Unique Selling Proposition (USP) in the global sourcing market. However, India is also
gaining prominence in terms of intellectual capital with several global IT firms setting up their
innovation centres in India.

The IT industry has also created significant demand in the Indian education sector, especially
for engineering and computer science. The Indian IT and ITeS industry is divided into four
major segments – IT services, Business Process Management (BPM), software products and
engineering services, and hardware.

The internet industry in India is likely to double to reach US$ 250 billion by 2020, growing to
7.5 per cent of gross domestic product (GDP). The number of internet users in India is expected to
reach 730 million by 2020, supported by fast adoption of digital technology, according to a
report by National Association of Software and Services Companies (NASSCOM).

Indian IT exports are projected to grow at 7-8 per cent in 2017-18, in addition to adding
130,000- 150,000 new jobs during the same period.

Digital commerce market in India is set to grow at 30.4 per cent year-on-year to Rs 220,330
crore (US$ 34.11 billion) by December 2018, according to a report by Internet and Mobile
Association of India and IMRB Kantar.

Indian technology companies expect India's digital economy to have the potential to reach
US$ 4 trillion by 2022, as against the Government of India's estimate of US$ 1 trillion.

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Scope of the project
The internet industry in India is likely to double to reach US$ 250 billion by 2020, growing to
7.5 per cent of gross domestic product (GDP). The number of internet users in India is expected to
reach 730 million by 2020, supported by fast adoption of digital technology, according to a
report by National Association of Software and Services Companies (NASSCOM).

Indian IT exports are projected to grow at 7-8 per cent in 2017-18, in addition to adding
130,000- 150,000 new jobs during the same period.Digital commerce market in India is set to
grow at 30.4 per cent year-on-year to Rs 220,330 crore (US$ 34.11 billion) by December 2017,
according to a report by Internet and Mobile Association of India and IMRB Kantar.Indian
technology companies expect India's digital economy to have the potential to reach US$ 4
trillion by 2022, as against the Government of India's estimate of US$ 1 trillion.

The proposed software unit is to create Mobile application and web based software creation.
As we know the market is changing rapidly against the new technology and invent of mobile
phones, the scope of new softwares and applications are necessary.

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Promoter(s) details
The promoter of the proposed venture is Mr: your name , Pristine Villa , New Delhi. Heis
having on online experience of 10 years with various Instititions . The Project is promoted as
a proprietorship firm under the name of M/s.Sample Project Report

Brief Bio-Data

Name :your name

Address :Prestine Ville, New Delhi

Phone :123456889

e-mail ID (if any) :[email protected]

Aadhar No :2345689123

PAN :BBBBXX22

Sex (tick) : Male/

Age & DOB : 40, 12-01-1989

Qualification : BTech

Experience details : Project Manager in reputed Firm in Dubai, US

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Product / services & process

Infrastructure Assessments and Deployments

Server and End User Virtualization
Strategic Information Technology Planning – organizational and infrastructure
Server and Storage planning, installation and migration
Cloud readiness planning

Network design, implementation, staging and rollout – wired and wireless

Enterprise Security services, including end-to-end Security Posture, Penetration Testing

Asset Management, prior to or during a hardware refresh cycle
24×7 HUBCare and Helpdesk Support with the ability to place a service call around the
clock

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Plant & machinery /
equipments

Computers - 20 numbers

Printers - 2 nos

MS office suite - 20

nos Laptop - 5 nos

Office Chairs - 35

nos Diesel genset -

1 nos UPS- 1 nos

Office almara- 5 nos

Files - 100 nos

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Market potential & Strategy
The internet industry in India is likely to double to reach US$ 250 billion by 2020, growing to
7.5 per cent of gross domestic product (GDP). The number of internet users in India is expected to
reach 730 million by 2020, supported by fast adoption of digital technology, according to a
report by National Association of Software and Services Companies (NASSCOM).

Indian IT exports are projected to grow at 7-8 per cent in 2017-18, in addition to adding
130,000- 150,000 new jobs during the same period.

Digital commerce market in India is set to grow at 30.4 per cent year-on-year to Rs 220,330
crore (US$ 34.11 billion) by December 2017, according to a report by Internet and Mobile
Association of India and IMRB Kantar.

Indian technology companies expect India's digital economy to have the potential to reach
US$ 4 trillion by 2022, as against the Government of India's estimate of US$ 1 trillion.

The global sourcing market in India continues to grow at a higher pace compared to the IT-
BPM industry. The global IT & ITeS market (excluding hardware) reached US$ 1.2 trillion in
2016-17, while the global sourcing market increased by 1.7 times to reach US$ 173-178 billion.
India remained the world’s top sourcing destination in 2016-17 with a share of 55 per cent.
Indian IT & ITeS companies have set up over 1,000 global delivery centres in over 200 cities
around the world.

Total spending on IT by banking and security firms in India is expected to grow 8.6 per cent
year-on- year to US$ 7.8 billion by 2017!!

The public cloud services market in India is slated to grow 35.9 per cent to reach US$ 1.3
billion according to IT consultancy, Gartner. Increased penetration of internet (including in rural
areas) and rapid emergence of e-commerce are the main drivers for continued growth of data
centre co-location and hosting market in India. The Indian Healthcare Information Technology
(IT) market is valued at US$ 1 billion currently and is expected to grow 1.5 times by 2020^^.
India's business to business (B2B) e-commerce market is expected to reach US$ 700 billion
by 2020 whereas the business to consumer (B2C) e-commerce market is expected to reach
US$ 102 billion by 2020.

Cross-border online shopping by Indians is expected to increase 85 per cent in 2017, and total
online spending is projected to rise 31 per cent to Rs 8.75 lakh crore (US$ 128 billion) by
2018.!!!

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Manpower requirements
Engineers- 18 nos

Designers - 2 nos

Accountnt /HR- 1 nos

Receptionist/Admin - 1 nos

Marketing - 3nos

Housekeeping - 1 nos

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Risks & Mitigation strategy
Schedule Risk:
Project schedule get slip when project tasks and schedule release risks are not addressed properly.
Schedule risks mainly affect on a project and finally on company economy and may lead to
project failure.
Schedules often slip due to following reasons:

Wrong time estimation

Resources are not tracked properly. All resources like staff, systems, skills of individuals etc.
Failure to identify complex functionalities and time required to develop those functionalities.
Unexpected project scope expansions.

Budget Risk:

Wrong budget estimation.

Cost overruns
Project scope expansion

Operational Risks:
Risks of loss due to improper process implementation failed system or some external events risks.
Causes of Operational risks:

Failure to address priority conflicts

Failure to resolve the
responsibilities Insufficient
resources
No proper subject
training No resource
planning
No communication in the team.

Technical risks:
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Risks & Mitigation strategy
Technical risks generally lead to failure of functionality and performance.

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Causes of technical risks are:

Continuous changing requirements

No advanced technology available or the existing technology is in initial stages.

The product is complex to implement.
Difficult project modules integration.

Programmatic Risks:
These are the external risks beyond the operational limits. These are all uncertain risks are
outside the control of the program.
These external events can be:

Running out of the

fund. Market
development
Changing customer product strategy and priority
Government rule changes.

Mitigation Strategy

Proper plannng and continues monitoring is a key to eliminate risk. There are ways for inputing
the sotware risk asessment using many structured tools.

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Project Cost
Sl. no Item Amount Rs
1 Building 1,500,000
2 Software 250,000
3 Printer 36,000
4 Special computer 180,000
5 Laptop 336,000
6 Computer 1,125,000
7 Aircondition 85,000
8 Almaras 45,000
9 Racks and furnitures 125,000
10 Office Chairs 75,000
11 Electrification and Networking 100,000
12 Preliminary expenses 85,000
13 interior work 250,000
14 Working Capital 1,000,000
Subsidy 0
Total 5,192,000

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Working Capital Computation

Sl. no Item Amount Rs

1 Consumables / stock in hand 0
2 Work in progress 0
3 Finished goods 0
4 Working expense. 1,500,000
5 Recievables/Sundry debtors
6 Working expense 500,000
8 Total working capital 1,000,000
9 Own Contribution 500,000
11 Working capital loan 500,000

Consumables are electricity cost and we took salary for engineers as working expense. The project
cycle is around 30 days .

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Annual Sales / Revenue

Sl. no Item Rate Quantity Unit Total Rs

1 Revenue from online 14,400 X 500 Hour 7,200,000
2 Sales from service 16,200 X 350 Hour 5,670,000
Total 12,870,000

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Total Monthly Expense

Sl. no Item Amount Rs

1 Engineers & SEO specialist 400,000
2 Other supporting staff 35,000
3 Marketing executives 50,000
4 Repairs & Maintanance 12,000
5 Electricity 12,500
6 Office expense & utilities 25,000
Total 796,000

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Application of Fund
Sl. no Item Subsidy % No. Rate Amount Rs
1 Building 0 1 1,500,000 1,500,000
2 Software 0 1 250,000 250,000
3 Printer 0 2 18,000 36,000
4 Special computer 0 2 90,000 180,000
5 Laptop 0 7 48,000 336,000
6 Computer 0 25 45,000 1,125,000
7 Aircondition 0 1 85,000 85,000
8 Almaras 0 1 45,000 45,000
9 Racks and furnitures 0 1 125,000 125,000
10 Office Chairs 0 1 75,000 75,000
11 Electrification and Networking 0 1 100,000 100,000
12 Preliminary expenses 0 1 85,000 85,000
13 interior work 0 1 250,000 250,000
Total Investment 4,192,000
Total Subsidy 0
Net Investment 4,192,000

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Means of Finance

Sl. no Item Amount

1 Term Loan 1,886,400
2 Working capital Loan 500,000
3 Total loan 2,386,400
4 Term Loan contribution 2,305,600
5 Working capital contribution 500,000

Building advance and advance for furnishing and computers are paid from own contribution. Own
contribution raised from Friends and families .

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Profitability Statement
All figures are in lakhs

Year 1(!*) Year 2 Year 3 Year 4 Year 5

Revenue from
operation
Revenue from online 60.00 79.20 87.12 95.83 105.42
Sales from service 47.25 62.37 68.61 75.47 83.01
Add :
Closing stock 0.00 0.00 0.00 0.00 0.00
Total 107.25 141.57 155.73 171.30 188.43
Less :
Opening stock 0.00 0.00 0.00 0.00 0.00
Engineers & SEO
40.00 52.80 58.08 63.89 70.28
specialist
Repairs & Maintanance 1.20 1.58 1.74 1.92 2.11
Electricity 1.25 1.65 1.82 2.00 2.20
Total 42.45 56.03 61.64 67.80 74.58
Gross profit 53.63 60.17 67.74 75.37 79.14
Less :
Other supporting staff 3.50 4.62 5.08 5.59 6.15
Marketing executives 5.00 6.60 7.26 7.99 8.78
Office expense & 2.50 3.30 3.63 3.99 4.39
utilities
Internet 0.15 0.20 0.22 0.24 0.26
Marketing/Advertisement 15.00 19.80 21.78 23.96 26.35
Domain & Hosting
7.50 9.90 10.89 11.98 13.18
annual charge
Postage & Telephone 3.50 4.62 5.08 5.59 6.15
Total 37.15 49.04 53.94 59.34 65.27
Depreciation 3.12 3.15 2.55 2.06 1.67
Interest on TL 2.11 1.73 1.32 0.84 0.31

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 Year 1(!*) Year 2 Year 3 Year 4 Year 5
Revenue from
operation
Interest on WC 0.70 0.70 0.70 0.70 0.70
Total 43.08 54.62 58.50 62.94 67.95
Profit before tax 10.55 5.55 9.24 12.43 11.19
Income Tax 1.61 0.30 1.35 1.99 1.74
Profit after tax 8.94 5.24 7.89 10.44 9.45

Annual growth method

!* = Considered only 10 months on first year as 2 month(s) needed for setting up the firm

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Cash flow statement
All figures are in lakhs

Cash Inflow Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
Capital 23.06 5.00 0.00 0.00 0.00 0.00
Subsidy 0.00 0.00 0.00 0.00 0.00 0.00
Termloan 18.86 0.00 0.00 0.00 0.00 0.00
Profit before tax with interest 0.00 13.35 7.98 11.25 13.97 12.20
Increase in WC loan 0.00 5.00 0.00 0.00 0.00 0.00
Depreciation 0.00 3.12 3.15 2.55 2.06 1.67
Increase in Current liability 0.00 4.17 1.33 0.55 0.61 0.67
Total Cash Inflow 41.92 30.64 12.46 14.35 16.64 14.54
Cash Outflow
Fixed Assets 41.92 0.00 0.00 0.00 0.00 0.00
Increase in Current asset 0.00 0.00 0.00 0.00 0.00
Interest on TL 0.00 2.11 1.73 1.32 0.84 0.31
Interest on WC 0.00 0.70 0.70 0.70 0.70 0.70
Income Tax 0.00 1.61 0.30 1.35 1.99 1.74
Decrease in Term loan 2.93 3.30 3.72 4.19 4.72
Divident on equity 0.00 1.15 0.00 1.15 0.00 1.15
Total Cash Outflow 41.92 8.50 6.04 8.24 7.72 8.63
Opening balance 0.00 0.00 22.14 28.57 34.68 43.60
Net Cashflow 0.00 22.14 6.42 6.11 8.92 5.91
Closing balance 0.00 22.14 28.57 34.68 43.60 49.51

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Balance sheet
All figures are in lakhs

Liability Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5

A. Share holders funds
Capital 23.06 28.06 28.06 28.06 28.06 28.06
Reserve & Surplus 0.00 7.79 13.03 19.76 30.21 38.50
B.Non current Liabilities
Termloan 18.86 15.93 12.63 8.91 4.72 -0.00
C.Current Liabilities
Working capital loan 0.00 5.00 5.00 5.00 5.00 5.00
Account payable 4.17 5.50 6.05 6.66 7.32
Total Lability 41.92 60.94 64.22 67.78 74.64 78.88
Asset
A. Non current Assets
Fixed Assets 41.92 38.80 35.65 33.10 31.04 29.37
B. Current Assets
Inventory 0.00 0.00 0.00 0.00 0.00 0.00
Trade recievables 0.00 0.00 0.00 0.00 0.00 0.00
Cash and cash equivalence 0.00 22.14 28.57 34.68 43.60 49.51
Total Asset 41.92 60.94 64.22 67.78 74.64 78.88

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Repayment of Term loan
All figures are in lakhs

Outstanding at the Pricipal Amount Outstanding at the

Year Installment Interest
beginning repayment paid end
1 1 18.86 0.23 0.19 0.42 18.63
1 2 18.63 0.23 0.19 0.42 18.40
1 3 18.40 0.24 0.18 0.42 18.16
1 4 18.16 0.24 0.18 0.42 17.93
1 5 17.93 0.24 0.18 0.42 17.69
1 6 17.69 0.24 0.18 0.42 17.44
1 7 17.44 0.25 0.17 0.42 17.20
1 8 17.20 0.25 0.17 0.42 16.95
1 9 16.95 0.25 0.17 0.42 16.70
1 10 16.70 0.25 0.17 0.42 16.45
1 11 16.45 0.26 0.16 0.42 16.19
1 12 16.19 0.26 0.16 0.42 15.93
2 13 15.93 0.26 0.16 0.42 15.67
2 14 15.67 0.26 0.16 0.42 15.41
2 15 15.41 0.27 0.15 0.42 15.15
2 16 15.15 0.27 0.15 0.42 14.88
2 17 14.88 0.27 0.15 0.42 14.61
2 18 14.61 0.27 0.15 0.42 14.33
2 19 14.33 0.28 0.14 0.42 14.06
2 20 14.06 0.28 0.14 0.42 13.78
2 21 13.78 0.28 0.14 0.42 13.50
2 22 13.50 0.28 0.13 0.42 13.21
2 23 13.21 0.29 0.13 0.42 12.92
2 24 12.92 0.29 0.13 0.42 12.63
3 25 12.63 0.29 0.13 0.42 12.34

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 Outstanding at the Pricipal Amount Outstanding at the
Year Installment Interest
beginning repayment paid end

3 26 12.34 0.30 0.12 0.42 12.04

3 27 12.04 0.30 0.12 0.42 11.75
3 28 11.75 0.30 0.12 0.42 11.44
3 29 11.44 0.31 0.11 0.42 11.14
3 30 11.14 0.31 0.11 0.42 10.83
3 31 10.83 0.31 0.11 0.42 10.52
3 32 10.52 0.31 0.11 0.42 10.20
3 33 10.20 0.32 0.10 0.42 9.89
3 34 9.89 0.32 0.10 0.42 9.57
3 35 9.57 0.32 0.10 0.42 9.24
3 36 9.24 0.33 0.09 0.42 8.91
4 37 8.91 0.33 0.09 0.42 8.58
4 38 8.58 0.33 0.09 0.42 8.25
4 39 8.25 0.34 0.08 0.42 7.91
4 40 7.91 0.34 0.08 0.42 7.57
4 41 7.57 0.34 0.08 0.42 7.23
4 42 7.23 0.35 0.07 0.42 6.88
4 43 6.88 0.35 0.07 0.42 6.53
4 44 6.53 0.35 0.07 0.42 6.18
4 45 6.18 0.36 0.06 0.42 5.82
4 46 5.82 0.36 0.06 0.42 5.46
4 47 5.46 0.37 0.05 0.42 5.09
4 48 5.09 0.37 0.05 0.42 4.72
5 49 4.72 0.37 0.05 0.42 4.35
5 50 4.35 0.38 0.04 0.42 3.97
5 51 3.97 0.38 0.04 0.42 3.59
5 52 3.59 0.38 0.04 0.42 3.21
5 53 3.21 0.39 0.03 0.42 2.82
5 54 2.82 0.39 0.03 0.42 2.43
5 55 2.43 0.40 0.02 0.42 2.04
5 56 2.04 0.40 0.02 0.42 1.64

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 Outstanding at the Pricipal Amount Outstanding at the
Year Installment Interest
beginning repayment paid end

5 57 1.64 0.40 0.02 0.42 1.23

5 58 1.23 0.41 0.01 0.42 0.83
5 59 0.83 0.41 0.01 0.42 0.42
5 60 0.42 0.42 0.00 0.42 -0.00

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Debt Service Coverage Ratio

All figures are in lakhs

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Reciepts
a).Net Profit 8.94 5.24 7.89 10.44 9.45
b).Depreciation 3.12 3.15 2.55 2.06 1.67
c).Interest on termloan 2.11 1.73 1.32 0.84 0.31
Total 14.17 10.12 11.75 13.35 11.43
Repayments
a).Loan Principal 2.93 3.30 3.72 4.19 4.72
b).Interest on termloan 2.11 1.73 1.32 0.84 0.31
Total 5.04 5.04 5.04 5.04 5.04
DSCR 2.81 2.01 2.33 2.65 2.27

Average DSCR : 2.42

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Depreciation
All figures are in lakhs

Particulars Rate Year 1 Year 2 Year 3 Year 4 Year 5

Printer 0.00 0.36 0.32 0.27 0.23 0.19
Less Depreciation 0.05 0.05 0.04 0.03 0.03
Written down value 0.32 0.27 0.23 0.19 0.16
Special computer 0.00 1.80 1.50 1.20 0.96 0.77
Less Depreciation 0.30 0.30 0.24 0.19 0.15
Written down value 1.50 1.20 0.96 0.77 0.61
Laptop 0.00 3.36 2.80 2.24 1.79 1.43
Less Depreciation 0.56 0.56 0.45 0.36 0.29
Written down value 2.80 2.24 1.79 1.43 1.15
Computer 0.00 11.25 9.38 7.50 6.00 4.80
Less Depreciation 1.88 1.88 1.50 1.20 0.96
Written down value 9.38 7.50 6.00 4.80 3.84
Aircondition 0.00 0.85 0.74 0.63 0.54 0.46
Less Depreciation 0.11 0.11 0.09 0.08 0.07
Written down value 0.74 0.63 0.54 0.46 0.39
Almaras 0.00 0.45 0.41 0.37 0.33 0.30
Less Depreciation 0.04 0.04 0.04 0.03 0.03
Written down value 0.41 0.37 0.33 0.30 0.27
Racks and furnitures 0.00 1.25 1.15 1.03 0.93 0.84
Less Depreciation 0.10 0.11 0.10 0.09 0.08
Written down value 1.15 1.03 0.93 0.84 0.75
Office Chairs 0.00 0.75 0.66 0.56 0.47 0.40
Less Depreciation 0.09 0.10 0.08 0.07 0.06
Written down value 0.66 0.56 0.47 0.40 0.34
Total less depreciation 3.12 3.15 2.55 2.06 1.67
Total written down value 38.80 35.65 33.10 31.04 29.37

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Break Even Point

All figures are in lakhs

Year1 Year2 Year3 Year4 Year5

Total fixed cost 61.20 67.32 74.05 81.46 89.60
Total variable cost 34.32 37.75 41.53 45.68 50.25
BEP in % of installed capacity % 83.92 % 64.84 % 64.84 % 64.84 % 64.84 %
BEP in sales of Rs 9,000,000.00 9,180,000.00 10,098,000.00 11,107,800.00 12,218,580.00

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Assumption
The entire projection is based on the assumption that the sales for 5 years will be

All figures are in lakhs

Year1 Year2 Year3 Year4 Year5

107.25 141.57 155.73 171.30 188.43

From Revenue from online, 7200000, Sales from service, 5670000

Also the total expense for the firm during the projection years will be as follows

Year1 Year2 Year3 Year4 Year5

79.60 105.07 115.58 127.14 139.85

The depreciation is as follows

Particulars Value
Printer 15%
Special computer 20%
Laptop 20%
Computer 20%
Aircondition 15%
Almaras 10%
Racks and furnitures 10%
Office Chairs 15%

The Term loan repayment is calculated at an interest rate of 12.00% for 5

years Working capital loan calculated on an interest rate of 14.00 %
Cost of the land on the basis of current
rate Cost of building is based on
current rate
Cost of machinery is based on the quotation submitted by the supplier

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 Value of raw materials & utility charges as per the current market conditions

All other assumptions are calculated based on the basis of experience of the promoter and
deep study on the working of similar model

This report is created using www.finline.in . Finline have bears no financial responsibility on or
behalf of any of the authorized signatories

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Conclusion
The project as a whole describes the scope and viability of the IT & IT enabled Units industry
and mainly of the financial, technical and its market potential. When we take a close look at the
Debt Service Coverage Ratio (DSCR), the avg: DSCR is 2.42 : 1, which is at a healthy
proposition & proposes a profitable enture. The Profit and Loss shows a steady growth in
profit throughout the year and the firm has a good Current Ratio (average) of 2.84, this shows
the current assets and current liabilities are managed & balanced well. 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 15 and
above. It will cater the demand of IT & IT enabled Units 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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