PROJECT VIABILITY REPORT

FOR
An IT - Application & Hardware Services
company.

Prepared by

SARISH VARMA
OWNER

A TECHNOLOGY & VENTURE CAPITAL FUNDING INITIATIVE

AVALON FINANCIAL ADVISOR

16/08/2019
 PROJECT REPORT FOR AN IT & FINANCIAL SERVI

CONTENTS

S.N. TITLE

1 Project at a Glance

2 Cost of Project & Source of Finance

3 Detail of Machinery Purchased

4 Key Financial Ratio

5 Projected Balance-Sheet

6 Projected Profitability Statement

7 Projected Cash Flow Statement

8 Projected Administration & Selling Expenses

9 Depreciation Schedule

10 Detail of Machinery Purchased

11 Interest on Working Capital Limit

12 Raw Material Requirement

13 Working Capital Requirement

R AN IT & FINANCIAL SERVICES FIRM

REFERENCE

Statement No.1

Statement No.2

Statement No 3.

Statement No.4

Statement No. 5

Statement No.6

Statement No.7

Annexures-I

Annexures-II

Annexures-III

Annexures-IV

Annexures-V

Annexures-VI
 PROJECT REPORT FOR AN IT & FINANCIAL SERVICES FIRM

PROJECT AT A GLANCE STATEMENT NO.1

PARAMETER

1 PROJECT REPORT ON : IT- Appliaction & Hardware services firm.

2 NAME OF THE BORROWER : SARISH VARMA

3 AGE : 53

4 ADDRESS OF BORROWER : 1308/A Amrapali Princesly Estates

Sector-76, NOIDA-201301

5 CONTACT NO. : 0091-9599770325

6 TYPE OF ORGANISATION : Sole Proprietorship

( To be converted into a Private Ltd Company)
7 COST OF PROJECT (IN Rs) : FURNITURE & WOOD PANELLING

FIXED ASSETS ( Machinery & Eqmt )

OPERATING EXPENSES

MISCELLEANOUS CHARGES

PROJECT COST

8 MEANS OF FINANCE(IN RS) :-

PROMOTER'S CONTRIBUTION : 2,000,000.00

WORKING CAPITAL LOAN : 4,500,000.00
TERM LOAN 30,000,000.00

TOTAL : 36,500,000.00

9 TURNOVER :
I YEAR : 2,176,667.00
II YEAR : 7,162,500.00
III YEAR : 8,953,125.00
IV YEAR : 11,191,406.00
V Year : 13,989,258.00
 RVICES FIRM

MENT NO.1
AMOUNT

vices firm.

d Company)
LING 200,000

500,000

35,300,000

500,000

OST 36,500,000
 PROJECT REPORT FOR AN IT & FINANCIAL SERVICES FIRM

KEY FINANCIAL RATIOS STATEMENT NO. 4

YEARS
PARTICULARS I II III IV V

GROSS PROFIT RATIO IN % 101.27% 90.20% 82.71% 76.00% 69.84%

(Gross Profit/Gross Sales)

NET PROFIT RATIO IN % -2.03% 5.51% 11.47% 16.76% 21.58%

(Net Profit/Gross Sales)

DEBT- EQUITY RATIO 26.24 - - - -

(Loan Liability/Equity)
 PROJECT FOR AN IT & FINANCIAL SERVICES FIRM

COST OF PROJECT & SOURCE OF FINANCE STATEMENT NO.2

PARTICULARS AMOUNT

COST OF PROJECT:-

FURNITURE & FIXTURES : 200,000

MACHINERIES & EQUIPMENTS : 500,000

RAW MATERIAL COST : 23,500,000

OTHER OP EXPENSES 12,300,000

Total Rs. 36,500,000

MEANS OF FINANCE:-

TERM LOAN : 30,000,000

WORKING CAPITAL 4,500,000

PROMOTER CONTRIBUTION : 2,000,000

Total Rs. 36,500,000

 PROJECT REPORT FOR AN IT & FINANCIAL SERVICES FIRM

PROJECTED BALANCE SHEET STATEMENT NO. 5

YEARS
PARTICULARS
I II III IV V
LIABILITIES

CAPITAL ACCOUNT
Opening Balance - 1314839 3404111 8929033 19062581
Add: Additional Capital Introduced 2000000 - - - -
Add: Profit during the year -635161 2149272 5596921 10217548 16445028
Less: Withdrawal 50000 60000 72000 84000 108000
SUB TOTAL : 1314839 3404111 8929033 19062581 35399609

SECURED LOANS
Working Capital + Term Loan 34500000 0 0 0 0

CURRENT LIABILITIES
Sundry Creditors 110000 44500 49675 55626 62470

Total Rs. 35924839 3448611 8978708 19118207 35462079

ASSETS

FIXED ASSETS:-
Opening Balance 0 148520 194242 262106 345290
Add : Additions during the Year 158000 80000 100000 130000 130000
Gross Block 158000 228520 294242 392106 475290
Less : Depreciation 9480 34278 32136 46816 59293
Net Block 148520 194242 262106 345290 415996

INVESTMENTS & DEPOSITS:-

Investments 0 50000 100000 150000 200000

CURRENT ASSETS
Sundry Debtors 2000000 1200000 1800000 2400000 3000000
Closing Stock 5860900 23442000 26958600 31002045 35652452
Other Consumables 0 0 0 0 0
Cash & Bank Balances 900000 1000000 1500000 2000000 2500000
Advances & Other Receivables 10000 12000 14400 15840 17424

Total Rs. 8919420 25898242 30635106 35913175 41785872

 PROJECT REPORT FOR AN IT & FINANCIAL SERVICES FIRM

PROJECTED PROFITABILITY STATEMENT STATEMENT NO. 6

YEARS
PARTICULARS
I II III IV
Sales Revenue:

Total Sales revenue 31220000 39025000 48781250 60976563

Income on Investment
TOTAL: 31220000 39025000 48781250 60976563

Operating expenses:

Administration & Selling Expenses 7898414 9111000 12038670 13787971

Raw Material Consumed 22590000 24849000 26958900 31002475
Other Consumables 1129500 1242450 1347945 1550124

TOTAL: 31617914 35202450 40345515 46340570

Gross Profit (A-B) -397914 3822550 8435735 14635993

Profit Before Depreciation, Interest & Tax -397914 3822550 8435735 14635993
PBDIT

Depreciation 9480 34278 32136 46816

Profit Before Interest & Tax -407394 3788272 8403599 14589177

PBDT

Interest
Interest on Loan( WC + TL ) 227767 911067 911067 911067

Profit Before Tax -635161 2877205 7492532 13678110

PBT

Income Tax @ 25.3% 0 727933 1895611 3460562

Profit After Tax( PAT) -635161 2149272 5596921 10217548

Depreciation Add Back 9480 34278 32136 46816

Net Profit -625681 2183550 5629057 10264364
 FIRM

MENT NO. 6

76220703

76220703

15800610
35652352
1782618

53235580

22985124

22985124

59293

22925830

911067

22014763

5569735

16445028

59293
16504321
 PROJECT REPORT FOR AN IT & FINANCIAL SERVICES

PROJECTED CASH FLOW STATEMENT

Years
PARTICULARS
I II III

A)Opening Balance - 23,453,753 6,685,053

B)SOURCES OF FUNDS

Increase in Capital 2,000,000 - -

Profit After Tax (635,161) 2,149,272 5,596,921
Increase in CC Limit 34,500,000 - -
Depreciation 9,480 34,278 32,136
TOTAL : 35,874,319 2,183,550 5,629,057

C)APPLICATION OF FUNDS

Increase in Fixed Assets 158,000 80,000 100,000

Increase in Working Capital 8,558,250 18,760,250 4,099,275
Increase in Investments - 50,000 50,000
Decrease in Term Loan 3,644,316 - -
Withdrawals 50,000 60,000 72,000
Increase in Advances 10,000 2,000 2,400

TOTAL : 12,420,566 18,952,250 4,323,675

Closing Balance
D) 23,453,753 6,685,053 7,990,436
(A+B-C)
OR AN IT & FINANCIAL SERVICES FIRM

STATEMENT NO. 7

Years
IV V

7,990,436 13,275,194

- -
10,217,548 16,445,028
- -
46,816 59,293
10,264,364 16,504,321

130,000 130,000
4,714,166 5,421,291
50,000 50,000
- -
84,000 108,000
1,440 1,584

4,979,606 5,710,875

13,275,194 24,068,640
 PROJECT REPORT FOR AN IT & FINANCIAL SERVICES FIRM
PROJECTED ADMINISTRATION & SELLING EXPENSES ANNEXUR

Years
SN PARTICULARS
Interim 1 11 111
3 Mths 12 Mths 12 Mths 12 Mths
1 Salary to Staff 330,000 6,434,500 7,077,950 7,785,745

2 Travelling + Conveyance Expenses 75,000 300,000 330,000 363,000

3 Printing & Stationery 25,000 27,600 31,740 36,501

4 Telephone Expenses 40,000 90,000 99,000 108,900

5 Tea & Refreshments 6,000 39,600 39,600

### 39,600

6 Electricity Charges 45,000 132,000 145,200 159,720

7 Repairs & Maintenance of Assets 25,000 26,400 29,040

### 31,944

8 Raw Material Charges 22,590,000 24,849,000 27,333,900

9 Building Rent 180,000 720,000 792,000 871,200

10 Software License Fees 421,000 ###

11 Legal Charges( Co Conversion ) 25,000 - ###

- -

12 Lease Charges 31,317 31,317

### 31,317

13 EMI Fundflow 96,997 813,333 813,333

TOTAL : 1,172,000 30,488,414 34,238,180

### 37,575,160
AN IT & FINANCIAL SERVICES FIRM
ANNEXURE-I

Years

1V
12 Mths
8,564,320

399,300

41,976

119,790

39,600

175,692

35,138

30,067,290

958,320

31,317

813,333

41,246,076
`
PROJECT REPORT FOR AN IT & FINANCIAL SERVICES FIRM

ANNEXURE NO 3

DETAIL OF ASSETS & MACHINERY REQUIRED

No. of Unit Price Per Unit Total Amount

1 Server-Dell/HP(32GB Ram/2 TB HDD ) 1 On Lease 0

2 Laptops-4 GB RAM/500GB HDD 8
Windows 10 & Office 365. On Lease 0
3 Desktop PC-8 Gb RAM/500 GB HDD 12 On Lease 0
Windows 10 & Office 365. 1 On Lease 0
4 HP-Inktank Printer(Dir) 1 On Lease 0
5 HP-3 in 1( Printer/Copier/Scanner) 2 On Lease 0
6 Telephone Set ( Airtel + 25 lines ) 1 On Lease 0
7 Director-Table + Chair 2 On Lease 0
8 Manager-Table & Chair 4 On Lease 0
9 Executive-Row Bench x 3 seater 8 On Lease 0
10 Reception Table + Chair 1 On Lease 0
11 Reception Desktop Computer 1 On Lease 0
12 HP-Inkjet printer(HR/Acnt/Mgrs) 5 On Lease 0
13 Fridge ( 165 Litres ) 1 10000 10000
14 Water-Filter 1 3000 3000
15 Tea maker 1 5000 5000
16 Microwave 1 x set 10000 10000
17 Crockery 1 2000 0
18 TV…32 inch 1 On Lease 0
19 Santro cars ( 2015 ) 2 On Lease 0
20 Samsung Mobiles-8GB/128GB HDD 2 On Lease 0
21 Reception Sofa + Centre table 1 x set On Lease 0
22 CCTV+ 6 x cameras 1 15000 15000
23 Air Conditioners-1.5 tons-Windows 7 On Lease 0
24 Assembly Work Bench( 10 x 6 ) 3 8000 24000
25 Testing Jigs 1 7000 7000
26 Quality Bench 1 8000 8000
27 Almirah ( Electronic Components ) 6 6000 36000
28 Electronic Meters Kit( 5 Units ) 4 7000 28000
29 Components -Bins/racks 6 2000 12000
30 UPS-5 KVA 1 On Lease 0
GRAND TOTAL 158000
NOTES TO ACCOUNT:

All Pc-Assembly Items + Testing + Quality

and Kitchen Items are on Direct Purchase.
RVICES FIRM

Remarks

Unit 1
Common

Unit 1

Common
Common
Common
Common
Common
Unit 1
Common
Common
Common
Common
Common
Common
Common
Common
Common
Director
Director
Common
Common
Common
Unit 2
Unit 2
Unit 2
Unit 2
Unit 2
Unit 2
Common
`
PROJECT REPORT FOR AN IT & FINANCIAL SERVICES FIRM

ANNEXURE-IV
Interest Paid on Working Capital
Interest
Interest Paid on Working Capital @ 13.0% 260,000
on CC-Amount: Rs 20, 00,000/-

Interest paid on TERM LOAN@ 12% 3,600,000

on Amount: Rs 300,00,000/-

TOTAL: 3,860,000

NOTE: Total Fund Outflow for Loan EMI pa:( 1st Yr ) 96667
Total EMI Fundflow ( Yr 2 onwards ) 813333
RVICES FIRM

Amount Mths EMI

5800000 60 96667

51600000 72 716667

813333
`
PROJECT REPORT FOR AN IT & FINANCIAL SERVI

ANNEXURE 5

UNIT-1 APPLICATION SW UNIT

ITEM/SERVICE Quantity
SOFTWARE

1 Microsoft Windows Release 10.1 (Network ) 1

2 Office 365 ( Network ) 1
5 Kaspersky Total Internet Server security 1
6 Wordpress+Laravel+Drupal --Web design sw 1
7 SAP B1...ERP ( 3 user ) 1
8 WIFI Network-500GB data+ 200.0 Mbps 1

Fixed Cost ( Software-Network versions ):

UNIT 2 PC -HARDWARE UNIT

HARDWARE

1 PC-cabinet ( Black ) 75
2 500 GB Sata HDD (Seagate ) 100
3 CDROM Drive 100
4 19' Monitor( Flatscreen ) 100
5 Motherboard-ASUS 75
6 SMPS 100
7 4 GB RAM DDR4 100
8 CPU ( i3 ) Intel 75
9 Webcam-Logitech 75
10 101 key-Keyboard(Wireless) 100
11 USB Mouse (Wireless) 100
12 Packaging Carton 100

SUB-TOTAL ( Unit 2 ):
GRAND TOTAL ( Raw Material Cost ): per year
OR AN IT & FINANCIAL SERVICES FIRM

RAW MATERIAL SCHEDULE

Unit-Price Amount(Rs ) Remarks

12,000 12000
12000 12000
4000 4000
40000 40000
350000 350000
3000 3000

421000

1500 112500
2800 280000
1000 100000
4000 400000
4500 337500
1000 100000
1200 120000
4000 300000
500 37500
500 50000
350 35000
100 10000

21450 1882500 pm
22590000 pa
`
PROJECT REPORT FOR AN IT & FINANCIAL SERVICES FIRM

Working Capital Requirement ANNEXURE-VI

Years
PARTICULARS
I II III IV

CURRENT ASSETS

Services & Raw Material 6668250 26673000 30673950 35275043

Sundry Debtors 2000000 690000 793500 912525
Other Consumables 0 0 0 0

Total 8668250 27363000 31467450 36187568

CURRENT LIABILITIES

Sundry Creditors 100000 34500 39675 45626

Expenses Payable 10000 10000 10000 10000

Total 110000 44500 49675 55626

Net Working Capital 8558250 27318500 31417775 36131941

Increase in Working Capital 18760250 4099275 4714166

NOTES TO ACCOUNT:

1 Interest rates will increase by 15% each year.

2 The Average AR will be 50 % of Sales revenue on IT-Application .

The Average AR will be 75% of Sales revenue onPC-Hardware unit.
CES FIRM

ANNEXURE-VI

V REMARKS

40566299
1049404
###
0

41615703
###

52470
10000

62470
###

41553232
###

5421291
###
 DEPRECIATION SCHEDULE

Schedule of Depreciation ANNEXURE-II

YEAR I YEAR II YEAR III YEAR IV Y

Rate of
Particulars Opening Additio Addition Addition
Dep. Additions Dep. Clo. WDV Dep. Clo. WDV Dep. Clo. WDV Dep. Clo. WDV Additions
ns s s

White Goods 15% - 63,000 3,780 59,220 20000 11,883 47,337 20000 10,101 57,236 30000 13,085 74,151 30000

IT Items 15% - 15,000 900 14,100 30000 6,615 7,485 30000 5,623 31,862 40000 10,779 61,083 40000

Furniture ( Unit 2) 15% 80000 4,800 75,200 30000 15,780 59,420 50000 16,413 93,007 60000 22,951 130,056 60000
PC-Assembly Unit

GRAND 0 158,000 9,480 148,520 80,000 34,278 114,242 100,000 32,136 182,106 130,000 46,816 265,290 130,000
TION SCHEDULE

ANNEXURE-II

YEAR V

Dep. Clo. WDV

15,623 88,528

15,162 85,920

28,508 161,548

59,293 335,996
 SALES REVENUE- MONTHLY

S/No Offering ( Yr 1 ) (Yr-2 ) PC Value IT Project

12 Mths 12 Mths 12 Mths Value

HARDWARE SALES:

1 Pc-Computer Kit sales 900 900 23400000

Sub Total ( Hw sales ): 23400000

SOFTWARE SALES:

2 IT- Biz Transformation study 3 4 120000 30000

3 IT-ERP Project 5 4 2000000 500000

4 IT-Cloud Migration project 2 4 2400000 600000

5 IT-Web design project 6 8 600000 75000

6 IT-Mobile Application project 6 8 1200000 150000

Sub Total ( Sw sales ): 6320000

TOTAL SALES TURNOVER

17 ERP Training Revenue: 10 30 50000

( 10 pax / pm…45 days ) pa

Sub Total ( Sw Training sales): 1500000

GRAND TOTAL TURNOVER:

GRAND TOTAL MARGIN:
Period:
PROFITABILITY
Margin ( % ) IT Project Margin ( % ) Margin ( Rs ) Margin ( Rs )
PC ( per unit ) Sales Turnover Project Value PC ( pa ) IT Project (pa )

5000 23400000 4500000

0 120000 40% 0 48000

0 2000000 30% 0 600000

0 2400000 30% 0 720000

0 600000 30% 0 180000

0 1200000 30% 0 360000

1908000

0 1500000 50% 750000

31220000 0 31220000
7158000
`
PROJECT REPORT FOR AN IT & FINANCIAL SERVICES FIRM

ANNEXURE
NO 3

LEASING SCHEDULE
No. of Unit Price

1 Network Server-Dell/HP/32 GB Ram/1 TB HDD 1 On Lease

2 Laptops-4 GB RAM/500GB HDD
Windows 10 & Office 365. 8 On Lease
3 Desktop PC- 8 GB Ram/500 GB HDD 12 On Lease
Windows 10 & Office 365.
4 HP-Inktank Printer( Dir ) 1 On Lease
5 HP-3 in 1( Printer/Copier/Scanner) 2 On Lease
6 Telephone Set ( Airtel + 25 lines ) 1 0
7 Director-Table + Chair 2 On Lease
8 Manager-Table + Chair 4 On Lease
9 Executive- Row Bench ( 3 seater ) 8 On Lease
10 Reception Table + Chair 1 On Lease
11 Reception Desktop Computer 1 On Lease
12 HP-Inkjet printer ( HR/Acnt/Mgrs ) 5 On Lease
13 Fridge ( 165 Litres ) 1 0
14 Water-Filter 1 0
15 Tea maker 1 0
16 Microwave 1 0
17 Crockery 1 x set 0
18 TV…32 inch 1 On Lease
19 Santro cars ( 2015 ) 2 On Lease
20 Samsung Mobiles-8GB/128GB HDD ( Dir s ) 2 On Lease
21 Reception Sofa + Centre table 1 On Lease
22 CCTV+ 6 x cameras 1 x set
23 Air Conditioners-1.5 tons 5 On Lease
24 UPS- 5 KVA 1 On Lease

TOTAL :( Depreciable Assets )

NOTES TO ACCOUNT:

1. All Computers/Acs/Furniture are on 1226500 At 12% pa

Lease. for 5 Yrs.
SERVICES FIRM

( Price) Lease % Period Interest Amount EMI

(Mths ) ( 1 Yrs ) ( 5 Yrs ) per month
40000 12 60 4800 64000 1067

200000 12 60 21600 308000 5133

300000 12 60 36000 480000 8000

7500 12 60 900 12000 200

15000 12 60 1800 24000 400

24000 12 60 2400 36000 600

40000 12 60 6000 70000 1167
64000 12 60 6000 94000 1567
7000 12 60 1200 13000 217
20000 12 60 2400 32000 533
15000 12 60 1800 24000 400
0
0
0
0
0
16000 12 60 1800 25000 417
300000 12 60 24000 420000 7000
20000 12 60 1800 29000 483
8000 12 60 4800 32000 533
0
125000 12 60 9000 170000 2833
25000 12 60 1800 34000 567

1226500 128100 31117

31117
pm
`
PROJECT REPORT FOR AN IT & FINANCIAL SERVICES FIRM

ANNEXURE NO 7

EMPLOYMENT & SALARY SCHEDULE

S/No No Qualifications
UNIT-1 ( Web Division )

1 Project Manager ( Web Design ) 1 B Tech/MCA

2 Developer-Android 1 B Tech/MCA
3 Developer-IOS 1 B Tech/MCA
4 Tester-Both 1 B Tech/MCA
5 Designer-Photoshop 1 B Tech/MCA
6 Sales Executive-Web 2 MBA

UNIT-1 (ERP Applications Unit )

7 Project Manager-ERP 1 B Tech/MCA

8 ERP-Functional Analyst. 1 B Tech/MCA
9 ERP-Developer 1 B Tech/MCA
10 ERP-Tester 1 B Tech/MCA
11 Sales Executive 2 MBA
12 ERP-Support 1 B Tech/MCA

Sub Total ( Software Unit ): 12

UNIT-2 ( Hardware Division )

13 Unit manager 1 B Tech

14 Assembler 3 B SC/ITI-Diploma
15 Sales executive 1 B SC/ITI-Diploma
16 Quality & testing 1 B SC/ITI-Diploma

SubTotal ( Hardware Unit ): 6

UNIT-3 ( Corporate Office )

17 Director 2 B Tech/M Law/CS
18 Accountant 1 B Com/M Com
19 Purchase 1 B Com/M Com
20 HR/Admin 1 MBA
21 Office Assistant 1 Class XII
22 Receptionist/Secretary 1 BA

Sub Total ( Corporate Office ) : 6

GRAND TOTAL( Company ): 21

RVICES FIRM

DETAILS
Experience Salary Interim Joining date 2020-21
2019-20

3 35000 0 0 3/1/2020 420000

1 20000 0 0 4/1/2020 220000
1 20000 0 0 4/1/2020 220000
1 20000 0 0 4/1/2020 220000
1 17500 0 0 4/1/2020 192500
2 17500 0 0 3/1/2020 420000
0 1692500

3 40000 0 0 3/1/2020 480000

1 25000 0 0 4/1/2020 275000
1 25000 0 0 4/1/2020 275000
1 25000 0 0 4/1/2020 275000
2 20000 0 0 3/1/2020 480000
1 20000 0 0 4/1/2020 220000

2005000

3 30000 0 0 3/1/2020 360000

1 15000 0 0 4/1/2020 165000
2 15000 0 0 3/1/2020 360000
1 20000 0 0 4/1/2020 220000

1105000
15 50000 3 150000 1/1/2020 600000
5 25000 2 50000 2/1/2020 300000
3 20000 2 40000 2/1/2020 240000
3 20000 2 40000 2/1/2020 240000
5 8000 3 24000 1/1/2020 96000
5 13000 3 26000 1/1/2020 156000

330000 1632000

330000 6434500