N
ETWORKING
S
ERVICE
SERVICE CAPACITY (Value) : Rs. 18,00,000/-MONTH AND YEAR : July, 2014
OF PREPARATION
PREPARED BY : Dr. Amarnath
Assistant Director (Metallurgy)
1. INTRODUCTION
Computers are widely used these days in office automation, business/trade, industries, hospitals, hotels and other transport type of services.
Computer hardware consists of Processors, Motherboard, Memory, Peripheral Controllers and interfaces, Pen Drives, and Hard Disks. The peripherals consist of Keyboard, Monitor, Printer, Modem, Mouse etc and connected to main CPU through cables and interfaces. Switch Mode Power Supply (SMPS) are used to power the computer for different voltage: +5V, -5V, +12V and -12V. The SMPS is housed in the cabinet. The monitor and Printer have their own power supply units.
2. MARKET POTENTIAL
The market for computer is expanding day by day to due to rapid computerization of offices for accounts, inventory, sales, correspondence and communications in all walks of life. The demand for computer continues to grow. Even though there are big competition in computer assembling the servicing of computers and providing quality networking services are in very poor shape even in metros. The small manufacturers have to compensate this tough competition with their better quality services. Government as well as private offices need dedicated team of expert to service as well network their whole functioning on service contract basis in most reliable fashion. This project serves this gray area of activity.
3. BASIS AND PRESUMPTIONS
This project is made on the basis of the following presumptions:
i. It is assumed that the unit will be viable at 75% efficiency on single shift basis considering 5 working days or as per demand of area per week.
ii. The rate of interest in the scheme is taken at 11.5 % for both fixed and working capital. Due to liberalization and competition among banks, lower rate of interest is possible in future.
iii. The prices of machinery and equipments are approximate which are ruling locally at the time of preparation of the project. When a tailor-cut project is prepared the necessary changes are to be made at the local level.
iv. The cost of staff and labor is approximate which is ruling locally at the time of preparation of the profile. When a tailor-cut project is prepared the necessary changes are to be made.
4. IMPLEMENTATION SCHEDULE
The project can be implemented in a period of 3 to 6 months by performing the various activities in a systematic manner and simultaneous application of various common activities as mentioned below:
Preparation of project reports 1st month
Essential registration if required 1st month
Selection of site 1st to 2nd month
Arrangement of finance/loans 3rd to 4th month
Arrangement of rented accommodation 1st to 2nd month
Machinery & equipment procurement 3rd to 5th month
Recruitment of staff & labour 5th month
Installation of machinery 5th month
Trial Operation 5th to 6th month
Commercial Operation 6th month
5. TECHNICAL ASPECTS
5.1. Process Outline
The maintenance of computer involves various skills like assembly of electronics and electrochemical sub-assemblies, peripherals and integrating them into a computer unit. In present market scenario it will be difficult to face competition from big names. Mostly the project model involves earning through servicing; however few computers will be assembled too to supply to the trusted customers. As per design the motherboard, and display device will procured as per demand. The other sub-assemblies like hard disk, CD drive, cabinets, SMPS etc will be readily available. For assembly of PC the motherboard along with other sub-assemblies are mounted in cabinet and interconnected before testing for various performances with help of dedicated software.
5.2. Service Capacity
Quantity: 24 new PC + revenue through service charges Estimated revenue earned per year: Rs.18,00,000/-
5.3. Motive Power
5.4. Pollution Control
Good housekeeping will be maintained to avoid pollution in and around area.
5.5. Energy Conservation
Measures to be adopted for conserving energy are adoption of energy conserving technologies, timely switching on-off of the lights, use of compacts fluorescence lamps (CFL) wherever possible and best use of electrical appliances etc to assure optimum energy consumption in the unit.
6. FINANCIAL ASPECT
6.1. Fixed Capital
Land & Building:
Well-equipped office space in easily assessable area 300 ft2 on rent.
6.1.1. Machinery and Equipments
Sl.
No. Description of Machine Quantity
Amount (Rs.) 1. Computer Testing System (HDD, Motherboard,
Processor, Printer, Keyboard, Mouse etc) 1 25,000 2. Tools for making internet connections and other
essential tools for assembly and service activities. LS 15,000
3. Software LS 20,000
4. Office Furniture LS 40,000
5. Electrification and other charges for installation
15 % of plant & machine charges 15,000
Total 1,15,000 Preoperative expenses like legal, establishment, traveling, Rs. 15,000
Startup consultancy, telephone, electricity connections, etc.
Total Fixed Capital
Rs. 1,30,000/-
6.2. Working Capital (per month)
6.2.1. Personnel
S.No. Designation Nos. Salary (Rs.) Total (Rs.)
1. Self as CEO/Manager 1 12,000 12,000
2. Skilled Worker 3 9,000 27,000
3. Semi-skilled Worker 1 8,000 8,000
Total 47,000 Add perquisites etc. @ 15% 7,050 Total 54,050
6.2.2. Raw Material
S.N. Description of item Quantity Value (Rs.)
1. Items like processor, motherboard, monitor, keyboard, Hard Disk, DVD writer, SMPS, RAM, Speakers and UPS etc.
For assembly of 2 computers as per customer’s specification
34,000
2. Accessories for networking and other spare
hardware frequently used. LS 16,000
Total 50,000
6.2.3. Utilities
1. Power: 140 units @ Rs. 6.50/unit Rs. 910
2. Water: LS Rs. 140
Total Rs. 1,050
6.2.4. Other Contingent Expenses
S. No. Description Value (Rs.)
1 Rent 9,000
2 Stationery, Postage, etc. 500
3 Transportation 1,500
4 Telephone, Fax, etc. 2,000
5 Advertisement/publicity 500
6 Consumable stores 1,000
7 Miscellaneous Expenses 500
Total 15,000
6.2.5. Total Recurring Expenditure (per month) Rs. 1,20,100/-
6.3. Total Capital Investment
Fixed Capital Rs. 1,30,000
Working Capital (for 3 months) Rs. 3,60,300
Total Rs. 4,90,300/-
7. FINANCIAL ANALYSIS
7.1. Cost of Operation (per annum)
S.No. Description Amount (Rs.)
1. Total Recurring Cost per year 14,41,200 2. Depreciation on Machinery & Equipment including
furniture @ 20% 23,000
3. Interest on Total Investment @ 11.5% 56,385
7.2. Turnover (per annum)
Revenue earned by way of service charges and sale of 24 Rs. 18,00,000/-
assembled computer with profit margin of Rs. 5000/ per computer
7.3. Net Profit (per annum)
= Turnover – Cost of Operation = Rs. 2,79,415/-
7.4. Net Profit Ratio
= Net profit per year X 100 Turnover per year
= 15.5 %
7.5. Rate of Return
= Net profit per year X 100 Total Capital Investment
= 57.0 %
7.6. Break-even Point
Fixed Cost (Per Annum) (Rs.)
Rent 1,08,000
Total Depreciation 23,000
Total Interest 56,385
40% of other Contingent expenses (Excluding rent) 28,800
Total 2,16,185
Note: Salary and wages are commensurate with work performed by the expert. Hence this portion is excluded in present profile in calculation of fixed cost.
B.E.P
= Fixed Cost + Net Profit Fixed Cost X 100 = 43.6 %
Addresses of Machinery and Equipment Suppliers:
