PRINCE ELECTRICALS

PROP ATAULLAH S/o ABDUL SALAM

ADARSH NAGAR, M.G ROAD. KALABURGI

PROJECT PROFILE
ON
SALES & SERVICING OF ELECTRICAL APPLIANCES
QUALITY & STANDARDS : AS PER CUSTOMER’S SPECIFICATION
SALES CAPACITY : ANNUM VALUE : RS. 16,74,000/-
YEAR OF PREPARATION : 2019- 2010
PREPARED BY : PRINCE ELECTRICALS
PROP ATAULLAH S/o ABDUL SALAM
ADARSH NAGAR, M.G ROAD. KALABURGI

1. INTRODUCTION: To-day, the “Electrical Industry” has a pride place in “Indian

Manufacturing Industry”. It has advanced through technical collaborations, joint ventures and
indigenous research and development, comprising of diverse products ranging from electric
generators, transformers, to house hold electrical Appliances and gadgets, etc. The electrical
appliances like mixer/ grinder, Geysers, water heater, fan, Iron, etc. are widely used in almost
every household. The major manufacturers are Usha, Bajaj, Crompton, V-Guard, Videocone, LG
etc. These electrical appliances do need periodic servicing, maintenance and sales actively.
Though there are a number of authorized sales & servicing centers, provided by the authorized
dealers network but still there is wide spread need of the sales & servicing centers to cater the
need of sales and servicing activity for these appliances specially in semi-urban and rural areas.
2. MARKET POTENTIAL: This will be a sales and service-oriented industry to cater to the
needs of the sales & servicing of Electrical Appliances. There is hardly any household which
does not posses these items. In course of time, these items/ appliances need periodic servicing
and repair requirement, therefore, there is a tremendous scope for the growth of these sales &
servicing centers, specially in semi-urban and Rural Areas, which can be undertaken by the
educated-unemployed youths of the area with a little skill development without much capital
requirement.

3. ANNUAL TURNOVER PER ANNUM :

Annual sales Value : annum Rs. 16,74,000/-

Financial aspects

1. Land and building rent

Office , stores 50 sq Metrs 72000

 2. Goods And Materials.

Sl no Particular Qty Rate Amount

Office equipments, Furniture & LS 80,000
1. Working tables etc.
Tools, Jigs and Fixures etc. LS 20,000
2.
Spare parts 1,00,000
3.
Electrical materials for sales 2,72,000
4.
Electronic goods 2,30,000
5.

Total investment 7,.02, 000

3. Staf And Wages

Sl. Designation Nos. Salary/month Total Salary/
No.
(Rs.) month (Rs.)
1. Servicing Cum Manager 1 10,000/- 10,000
2. Helper 1 5,000/- 5,000
Total 15,000

4. Utilities Per Month

Power 2000

Water 500

5. Other contingent Expenses per month

1. Rent 6,000
2. Postage and Stationery 500
3. Telephone/Telex/Fax charges 1,000
4. Repair and Maintenance 1,000
5. Transport & conveyance Charges 1,500
6. Advertisement & Publicity 500
7. Insurance and Taxes 1,000
8. Miscellaneous expenses 1,000
Total 12,500

Total capital of investment

Total 7,02,000

Financial analysis:

Purchase (Per annum)

Purchases of goods 10,38,000
Depreciation on Tools, Jigs, fixtures etc. @ 25% 5,000
Depreciation on office equipment, furniture @ 20% 16,000
Interest on total capital investment @ 16% 1,12,320
Total 11,71,320
or Total 11,71,000

Sales Turnover Per Annum

The total sales and after depreciation 16,74,000.00

Profit (Per Annum) Before tax Sales turnover- (purchases of goods + depreciation of FA (per
Annum))
Rs. 5,03,000/-
Net Profit Ratio (Profit x 100) Sales turnover
30%
Rate of Return (Profit x 100) / Total capital Investment
71.6%

Fixed cost per annum

Rent 72,000
Depreciation on tools, jigs and fixtures @ 25% 5,000
Depreciation on office equipment, furniture @ 20 % 16,000
Interest on total capital investment @ 16% 1,12,320
Insurance 12,000
Salary and Wages 1,80,000
40% of Other Contingencies (Excluding rent & insurance) 26,400
Utility 30,000
Total 4,53,720
Say 4,54,000

Break even point (BEP) = [FC/ (FC + Profit)] x 100

= 4,54,000 x 100 = 47.5%

4,54,000 + 5,03,000