PROJECT REPORT
ON
COMPUTER CENTER
PROJECT AT A GLANCE
1 Name of the Proposer Sanjay Kumar
2 Line of Activity Computer Center
3 Products All CSC Work, Computer related data work.
4 New/Expansion/Modernization New
5 Constitution Proprietorship
6 Name of the Proprietor Sanjay Kumar
7 Registered Address Vill – Gomtipur, Sikka
Post – Shamli, Distt Shamli
UP – 247776
8 Site Location C B Gupta Colony,
Post- Shamli, Distt. Shamli
Distt. Shamli - 247776
9 Cost of the Project 5,00,000.00
10 Feciliites Required Term Loan
11 Promoters Contribution 50,000.00
12 Loan From Bank 4,50,000.00
13 Shop Self
14 Electricity Self 25000.00
15 Aadhar No. 3360-0510-6626
16 Mobile No. 7579964847
COMPUTER BUSINESS CENTRE
1. INTRODUCTION
A computer business centre is a place where services like word processing, data
processing, accounting, fax facilities, internet café, photocopying, lamination,
typing, scanning, binding, online registrations, digital passports, instant photo
printing. With best location, this business can fetch revenues and profit.
Students and small business owners can be regular customers who seek one or
other service at centre.
2. SERVICE AND ITS APPLICATION
As already mention above, computer business centre with technical support
and skills can be important and critical facilities provider. Preparing project
materials, binding reports, data entries for small businesses, fax/scan & email,
seeking certain online services like passport application, driving licence
application, other govt/non govt applications etc. are some of particular
services which can be provided by computer business centre.
3. INDUSTRY LOOK OUT AND TRENDS
The personal computer industry has had a global production network almost
from its inception. In a rush to catch up with Apple in the early 1980s, IBM
decided to standardize the basic components of the PC so they could be
assembled in a modular fashion. IBM Then outsources most of those
components to other suppliers. The common standards, modular design, and
simple assembly of the PC made it possible to disaggregate the production
process among the various components, outsource production and even
assembly, and locate that work anywhere in the world. Some of the components
for the original IBM PC came from Asian suppliers. Other components also
began to be produced overseas, as IBM and other PC makers began locating
their assembly operations overseas to gain access to foreign markets, and as
their suppliers moved their operations abroad to reduce production costs.
4. MARKET POTANTAIL AND MARKETING ISSUES. IF ANY
Emerging technology makes new tools and services more affordable and allows
companies to save on their staff payroll and office equipment. Because
computers allow work to be done faster and more efficiently, it is possible for a
company to hire fewer staff. In addition, with networked and relatively
inexpensive computers, companies can store data more easily, saving on the
cost of outside file storage, and can avoid having to purchase as many copiers,
fax machines, typewriters, and other such items that were used before
computers became popular. Correspondingly, potentially profitable businesses
can be started with a smaller overhead cost. Email capabilities decrease
postage costs; software applications reduce the need for large accounting
departments, while videoconferencing reduces the need for travel. All resources
saved will trickle down to the consumers, who are then provided with much
more affordable products and service. Computers help speed up other business
operations. The collecting of consumer feedback, ordering of raw materials, and
inspection of products is made quicker through the use of computers, allowing
companies to operate much faster and to produce better quality results.
5. RAW MATERIAL REQUIREMENT
1. Computers, Advanced Software 2. Colour Printers, Photocopier
& s,
Scanner
Technologies s
3. Office Furniture 4. Spiral Binding machine
5. Paper cutter 6. Laminating Machine
7. Air Conditioner 8. UPS/Inverter
6. SERVICE PROCESS OUTLINE
Setup of a computer business centre requires below steps to follow.
1. Decide a location for office
First and foremost is to finalize a place where it is suitable for an
entrepreneur to operate this business. Things to keep in mind
before deciding are locality of an entrepreneur’s residence and
easy access, nearby offices, traders, small business operators and
most importantly colleges.
2. Decide on Services to be offered.
Next thing is to decide list of services which can be offered to
customers based on fixed capital investment and skills possessed.
3. Fixed Investment
Preparing a required machines/items list from list of services which
will be offered. Suppliers for these items needs to be decided
based on technical and commercial offers and budget of an
entrepreneur.
4. Advertising and Social Media marketing
This is very crucial, as this centre cannot be easily seen/accessible
to everyone near the place. Plus, there must be special packages
for small business owners like accounting, data processing, tax
returns preparation and that must be properly communicated to
nearby business owners. For college going students, there must be
various packages which offers spiral binding, project report
preparation, binding, laminating, scanning/photocopying and most
importantly that must be in-line with what college authority
demands.
7. MANPOWER REQUIREMENT
1. Entrepreneur
2. Technical support – 1
8. COST OF PROJECT
Sr. No. Particulars Amount in Rs
1 Land 0.00
2 Building 0.00
3 Equipments/ Other fixed investment 4,30,000.00
4 Working Capital (1 Months) 70,000.00
5 Total Cost of Project ₹ 5,50,000.00
(a) FIXED CAPITAL CALCULATION
Sr. No. Description Qtty Amount Total
1 Computers, Advanced Software & 1 ₹ 2,30,000.00 ₹ 2,30,000.00
Technologies
2 Licensed Accounting and Designing -- ₹ 50,000.00 ₹ 50,000.00
Software
3 Colour Printer cum Photocopier cum 1 ₹ 55,000.00 ₹ 55,000.00
Scanner
4 Spiral Binding machine 1 ₹ 4,000.00 ₹ 4,000.00
5 Paper cutter 1 ₹ 1,000.00 ₹ 1,000.00
6 Laminating Machine 1 ₹ 2,000.00 ₹ 2,000.00
7 Inverter 1 ₹ 5,000.00 ₹ 5,000.00
8 Air Conditioner 1 ₹ 28,000.00 ₹ 28,000.00
Sub Total ₹
3,75,000.00
9 Internet Infrastructure and Electrification -- ₹ 5,000.00 ₹ 5,000.00
10 Furniture -- ₹ 50,000.00 ₹ 50,000.00
Total ₹
4,30,000.00
(b) WORKING CAPITAL CALCULATION
Sr. No. Description Total
1 Salary ₹ 20,000.00
1a Entrepreneur ₹ 12,000.00
1b Technical/Office Support ₹ 8,000.00
2 Raw Material ₹ 15,700.00
2a Internet Connection Charges ₹ 700.00
2b Yearly Subscription Renew ₹ 5,000.00
2c Paper Ream ₹ 6500.00
2d Film Roll for Lamination ₹ 2,000.00
2e Ink cartridge refilling, Powder for toner ₹ 1,500.00
refilling
3 Utilities ₹ 7,300.00
3a Power ₹ 6,500.00
3b Water ₹ 800.00
4 Other Expenses ₹ 4,200.00
4a Advertising/Marketing/Social Media ₹ 800.00
4b Stationery ₹ 500.00
4c Telephone ₹ 700.00
4d Repair and Maintenance ₹ 1,200.00
4e Insurance ₹ 500.00
4f Misc. ₹ 500.00
5 Rent ₹ 10,000.00
Total ₹ 57,200.00
9. MEANS OF FINANCE
Sr. No. Description %age Amount (Rs)
1 Promoter's Contribution 10% ₹ 50,000.00
2 Term Loan/Bank Finance 90% ₹ 4,50,000.00
Total ₹ 5,00,000.00
(a) Cost of Operation
Sr. No. Particulars Amount in Rs
Variable Cost
1 Raw Material and Other direct ₹ 19,900.00
inputs
2 Salary (60%) ₹ 12,000.00
3 Power (70%) ₹ 5,110.00
Variable Cost 1 Month ₹ 37,010.00
Total Annual Variable Cost ₹ 4,44,120.00
Fixed Cost
1 Overheads ₹ 10,000.00
2 Salary (40%) ₹ 8,000.00
3 Power (30%) ₹ 2,190.00
Sub Total ₹ 20,190.00
Total for 12 Months ₹ 2,42,280.00
4 Interest ₹ 45,297.00
5 Depreciation on Equipments @ ₹ 22,670.00
10%
6 Depreciation on Furniture @ 20 % ₹ 10,000.00
Total Fixed Cost ₹ 3,20,247.00
Total Cost of Production ₹ 7,64,367.00
(b) Turnover
Sr. No. Description Unit Unit Qtty/ Revenue/Day Monthly Amount
Price Day (25 Working Days)
1 Printing Documents B/W ₹ 5 Pages 100 ₹ 500 ₹ 12,500.00
2 Printing Documents ₹ 10 Pages 20 ₹ 200 ₹ 5,000.00
Colour
3 Photocopy ₹1 Pages 400 ₹ 400 ₹ 10,000.00
4 Scan ₹5 Pages 10 ₹ 50 ₹ 1,250.00
5 Lamination ₹ 15 Pages 10 ₹ 150 ₹ 3,750.00
6 Spiral Binding ₹ 25 Bind 5 ₹ 125 ₹ 3,125.00
7 Designing ₹ 500 Design 2 ₹ 1000 ₹ 25,000.00
8 Accounting and Data ₹ 300 Hour 5 ₹ 1500 ₹ 37,500.00
Entry
Monthly Gross Income ₹ 98,125.00
Total Yearly Gross Income ₹ 11,77,500.00
10. WORKING CAPITAL REQUIREMENTS
Sr. No. Description Total
1 Entrepreneur ₹ 12,000.00
2 Technical/Office Support ₹ 8,000.00
3 Internet Connection Charges ₹ 700.00
4 Yearly Subscription Renew ₹ 5,000.00
5 Paper Ream ₹ 6500.00
6 Film Roll for Lamination ₹ 2,000.00
7 Ink cartridge refilling, Powder for toner ₹ 1,500.00
refilling
11. LIST OF MACHINARY REQUIRD
Sr. No. Description Qtty Amount Total
1 Computers, Advanced Software & 1 ₹ 2,30,000.00 ₹ 2,30,000.00
Technologies
2 Colour Printer cum Photocopier cum 1 ₹ 1,55,000.00 ₹ 1,55,000.00
Scanner
3 Spiral Binding machine 1 ₹ 4,000.00 ₹ 4,000.00
4 Paper cutter 1 ₹ 1,000.00 ₹ 1,000.00
5 Laminating Machine 1 ₹ 2,000.00 ₹ 2,000.00
6 Inverter 1 ₹ 5,000.00 ₹ 5,000.00
7 Air Conditioner 1 ₹ 28,000.00 ₹ 28,000.00
12. PROFITABILITY CALCULATION
Net Profit (Turnover - Cost of Operation) ₹ 4,13,133.00
Net Profit Ratio (Net profit * 100/Turnover) 35.09%
Rate of Return (Net Profit * 100 / Total Cost of Project) 82.08%
(a) Profitability Projection
Sr. No. Particulars UOM Year Wise estimates At Full
Year 1 Year Year 3 Year 4 Year 5 Capacity
2
Capacity
1 % 30 40 50 60 70 100
Utilization
2 Sales Rs Lakhs ₹ 3.53 ₹ 4.71 ₹ 5.89 ₹ 7.07 ₹ 8.24 ₹ 11.78
Raw
Materials
3 Rs Lakhs ₹ 1.33 ₹ 1.78 ₹ 2.22 ₹ 2.66 ₹ 3.11 ₹ 4.44
&
Other Direct
Inputs
4 Gross Margin Rs Lakhs ₹ 2.20 ₹ 2.93 ₹ 3.67 ₹ 4.40 ₹ 5.13 ₹ 7.33
Overheads
5 Except Rs Lakhs ₹ 2.42 ₹ 2.42 ₹ 2.42 ₹ 2.42 ₹ 2.42 ₹ 2.42
Interes
t
6 Interest Rs Lakhs ₹ 0.45 ₹ 0.45 ₹ 0.45 ₹ 0.45 ₹ 0.45 ₹ 0.45
7 Depreciation Rs Lakhs ₹ 0.33 ₹ 0.33 ₹ 0.33 ₹ 0.33 ₹ 0.33 ₹ 0.33
Net Profit
8 Rs Lakhs -₹ 1.00 -₹ ₹ 0.46 ₹ 1.20 ₹ 1.93 ₹ 4.13
Before Tax 0.27
% - 28.37% 23.43%
9 Profit % - 7.89% 16.95% 35.09%
5.71%
The basis of profitability calculation:
This unit will have capacity to print 36,000 document B/W and 7200 documents
colored throughout a year. Unit can have 1, 44,000 photocopy and 3600 scan
copy per year. Apart from this it can have services like spiral biding,
lamination, designing and data-entry services.
The cost of printing B/W documents would be ₹ 5/page and for colored
document it would be ₹ 10/page. (Costing for the bulk order can be
acceptation.) Other services can have costing like photocopy - ₹1/page,
scanning document - ₹10/page, spiral biding - ₹15/bind, lamination -
₹25/document, designing – 500/design and data entry - ₹300/hour.
Energy Costs are considered at Rs 7 per Kwh and fuel cost is considered at Rs.
65 per liter. The depreciation of plant is taken at 10-12 % and Interest costs are
taken at 14 -15 % depending on type of industry.
13. BREAKEVEN ANALYSIS
Sr. No. Particulars UOM Value
1 Sales at Full Capacity Rs Lakhs 11.78
2 Variable Costs Rs Lakhs 4.44
3 Fixed Cost incl. Interest Rs Lakhs 3.20
4 Break Even Capacity % of Installed 43.67
BEP = FC/( Sales -Variable Capacity
Cost)
*100
(SANJAY KUMAR)