PROJECT REPORT

Of

COMMON SERVICE
CENTRE

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Computer Business Centre.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.
 COMPUTER BUSINESS CENTRE

1. INTRODUCTION

A COMMON SERVICE 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 and
all service provided by Digital India Project, 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 licenses 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, Photocopiers,

Technologies Scanners
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 ₹ 3,31,700.00
4 Working Capital Margin (3 Months) ₹ 1,71,600.00
5 Total Cost of Project ₹ 5,03,300.00
 (a) FIXED CAPITAL CALCULATION

Sr. No. Description Qtty Amount Total

1 Computers, Advanced Software & 1 ₹ 30,000.00 ₹ 30,000.00
Technologies
2 Licensed Accounting and Designing Software -- ₹ 50,000.00 ₹ 50,000.00
3 Colour Printer cum Photocopier cum Scanner 2 ₹ 1,00,000.00 ₹ 1,00,000.00
4 PVC Card Printer 1 ₹ 35,000.00 ₹ 35,000.00
5 Spiral Binding machine 1 ₹ 4,500.00 ₹ 4,500.00
6 Paper cutter 1 ₹ 1,200.00 ₹ 1,200.00
7 Laminating Machine 1 ₹ 2,000.00 ₹ 2,000.00
8 Inverter 1 ₹ 6,000.00 ₹ 6,000.00
9 Air Conditioner 1 ₹ 28,000.00 ₹ 28,000.00
Sub Total ₹ 2,76,700.00
10 Internet Infrastructure and Electrification -- ₹ 25,000.00 ₹ 25,000.00
11 Furniture -- ₹ 50,000.00 ₹ 50,000.00
Total ₹ 3,31,700.00

(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 ₹ 6,500.00
2d Film Roll for Lamination ₹ 1,000.00
2e Ink cartridge refilling, Powder for toner refilling ₹ 2,500.00
3 Utilities ₹ 7,300.00
3a Power ₹ 6,500.00
3b Water ₹ 800.00
4 Other Expenses ₹ 8,200.00
4a Advertising/Marketing/Social Media ₹ 1300.00
4b Stationery ₹ 500.00
4c Telephone ₹ 700.00
4d Repair and Maintenance ₹ 1,200.00
4e Insurance ₹ 3000.00
4f Misc. ₹ 1500.00
5 Rent ₹ 6,000.00
Total ₹ 57,200.00

9. MEANS OF FINANCE

Sr. No. Description %age Amount (Rs)

1 Promoter's Contribution 20% ₹ 1,00,660.00
2 Term Loan/Bank Finance 80% ₹ 4,02,640.00
Total ₹ 5,03,300.00

(a) Cost of Operation

Sr. No. Particulars Amount in Rs

Variable Cost
1 Raw Material and Other direct inputs ₹ 19,900.00
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 @ 10% ₹ 22,670.00
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 ₹ 10 Pages 50 ₹ 500 ₹ 12,500.00
2 Printing Documents Colour ₹ 20 Pages 10 ₹ 200 ₹ 5,000.00
3 Photocopy ₹4 Pages 100 ₹ 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 Online Registration ₹ 250 Design 4 ₹ 1000 ₹ 25,000.00
8 Accounting and Data Entry ₹ 300 Hour 5 ₹ 1500 ₹ 37,500.00
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 refilling ₹ 1,500.00

11. LIST OF MACHINARY REQUIRD

Sr. No. Description Qtty Amount Total

1 Computers, Advanced Software & 1 ₹ 30,000.00 ₹ 30,000.00
Technologies
2 Colour Printer cum Photocopier cum Scanner 1 ₹ 1,55,000.00 ₹ 1,55,000.00
3 Spiral Binding machine 1 ₹ 4,500.00 ₹ 4,500.00
4 Paper cutter 1 ₹ 1,200.00 ₹ 1,200.00
5 Laminating Machine 1 ₹ 2,000.00 ₹ 2,000.00
6 Inverter 1 ₹ 6,000.00 ₹ 6,000.00
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 2 Year 3 Year 4 Year 5 Capacity
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 & Other Rs Lakhs ₹ 1.33 ₹ 1.78 ₹ 2.22 ₹ 2.66 ₹ 3.11 ₹ 4.44
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
Interest

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 -₹ 0.27 ₹ 0.46 ₹ 1.20 ₹ 1.93 ₹ 4.13
Before Tax
- 23.43
9 Profit % -5.71% 7.89% 16.95% 35.09%
28.37% %

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 Cost) Capacity
*100