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PROJECT REPORT ON CAR CARE AUTO WORK

Industry Name Term Loan Name Division : : : : Car Service Rs. 500000

3rd

INTRODUCTION

BIO-DATA OF PROMOTERS

EXPERIENCE OF PROMOTERS AAKASH RAJPUT I run my BBA from BRCM College. I have 5 months experience of marketing and also I have 2 month experience of Diamond Industry in summer training. DARSHIT SHAH I run my BBA from BRCM College. I have 1 year experience of car accessories and also I have 2 month experience of Diamond Industry in summer training. ORGANIZATION DETAIL
Organization Name Address : : Car care auto work 2, 3, Mahadevnagar sopping center, Opp. New civil hospital, Majura gate, Ring road, surat. Type of Organization Telephone Fax E-mail Website : : : : : Partnership 0261-2276425 0261-569832 www.ccauto.com www.carcareauto.com

PRODUCT DETAIL

Product code Quality & Standard Production capacity Year of preparation Prepared by

: : : : :

26598 As per customer specification Per year around 1450 to 1800 cars. 2009-10 Car Care Auto Work

PHOTOGRAPH OF MACHINES

Single Post Hydraulic

TWO POST HYDRAULIC

AIR COMPRESSOR

MARKET ANALYSIS

INTRODUCTION:While many customers looking to purchase automotive repair services are concerned with price, the primary concern is with building a relationship of trust between themselves and their service provider. A large number of people within the city have experienced or heard of bad service encounters within this market. As a person's car is usually connected in one way or another with that individual's livelihood, a dependable automobile is crucial. Therefore, many clients are willing to pay a little more for a mechanic they feel does a quality job and understands their needs. An automotive repair company that can anticipate, meet, and even

exceed customer's needs can build a defensible position within the market place and acquire market share at the expense of other rivals.

MARKETING STRATEGY
The company has a modest program of marketing its services that include the following: 1. Flyers. 2. Direct mailers. 3. Discounts. 4. Newspaper ads. 5. Yellow pages. 6. Referrals through other local businesses. Each of these marketing approaches has the advantage of being low cost and creating service awareness.

BASIS AND PRESUMPTIONS: -

The calculations have been carried on the basis of service provided to Time for achieving full capacity utilization is 2 year. The labor wages are considered as per the prevailing rates. Margin money is 25% for fixed capital and working capital. Costs in respect of land and building, machinery and equipments, raw

the customers

material etc are generally obtained at the time of preparation of the project profile and may vary depending on various factors. The rate of interest has been taken as 14% per annum. The unit will work 25 days in a month of 12 hours basis and 300 days The pay back period of this project is 5 year. The land area is 2300 sq. feet and the constructed area is 2100 sq.

in a year i.e. 3600 hours per year.

feet.

MARKET AREA:Car care auto works try to cover all the surat city. Mainly cover the area like, City light Ghod dod Parle point Athwagate Ring road Adajan Varacha Udhna City area

MARKETING SYSTEM:Car care auto works get car directly from customers and also provide home delivery of the car to the customers and gave them the test drive of the car. Some times if customers are not satisfied then we also gave again service to the customers and after sales services. We also provide service packages and discounts to the customers if they join service packages.

PLAN OF ADVERTISEMENT:Car care auto works give advertisement in local Newspaper and directly provide their pamphlets, which include Types of services, and done advertisement through their Web Site.

ADVERTISEMENT PHOTOGRAPH:-

TECHNICAL ASPECT

RAW MATERIAL:-

Car care auto works require raw materials are as follows: Shampoo Color Thinner body filter primer plastic primer water paper color gun rubbing polish wax polish oil oil filter injector cleaner

OTHER TOOLS AND MACHINERY:


spray gun tool kit two post hydraulic single post hydraulic air compressor presser pump

PLANT CAPACITY:-

Per day around 4 to 5 cars Per month around 120 to 150 cars. Per year around 1450 to 1800 cars.

LOCATION AND SITE ADDRESS: 2, 3, Mahadevnagar sopping center, Opp. New civil hospital, Ring road, surat.

PLANT LAYOUT:-

WASH ROOM AIR COMPRESSO R SINGLE POST HYDRAULIC

BACK SIDE ENTRY

TOOL KIT TWO POST HYDRAULIC

STAFF

STAFF

MAIN OFFICE

ENTRY

PROCESS FLOW DIAGRAM:

Car Taking

Prepare Job Card

Water Service

Mechanic Work

Color & Welding (If Required)

Service

Trial to Customer

Satisfied

Not satisfied

Delivery

SERVICE PROCESS:
1. 2. First, Car care auto works get the car from the customer at their place or customer put their car to Car care auto works. After that complain and other information of customer like personal detail is written down in job card.

3. 4. 5. 6.

Then car is taken for wash. As per the customer complain and requirement mechanic work is done on the car. They also provide color and welding services for car if customers require otherwise air and water service given to the car. After this trial is given to the customer. If customer is satisfied then delivery is given to them if they are not satisfied then again service of the car is done.

Power Supply Company : Torrent power limited H P: Total 5 H P Single host require hydraulic oil Two host require 2 H P Water pump require 2 H P Gas: Gujarat Gas Water: Per day requirement of water is 2000 Liter. Capacity of plant: Per day around 4 to 5 cars Per month around 120 to 150 cars. Per year around 1450 to 1800 cars. Communication System: Mobile, Landline, fax. Transport Facility: Manual Other Common Facility: After sale service, Home delivery, Washing car. Man Power requirement: Total man power require 12 Worker 9 Office staff 3

POLLUTION CONTROL: -

If there is a solid wastage then it is sold to the scrap. There is a drainage facility for polluted water in car care.

IMPLEMENT SCHEDULE:The time required for completing each activity of project till commercial each activity of project till commercial production is as follows: Preparation of Project Report Formulation of project Selection of site Registration of SSI Availability of finance Machinery and equipment procurement Recruitment of personal and labour Trial runs JAN FEB MARCH APRIL MAY

FINANCIAL ASPECTS

COST & MEANS OF FINANCE: COST OF PROJECT

Sr no. 1. 2. 3.

Particulars Plant & Machinery Margin for working capital Air Conditioner Unit Total

Proposed Rs. 600000 70000 30000 700000

MEANS OF FINANCE
Sr no. 1. 2. Term Loan Own Capital Total Note: Each partner invests Rs.100000 in business. Particulars Proposed Rs. 500000 200000 700000

CAR CARE PROJECTED PROFITABILITY STATEMENT


PARTICULARS INCOME SALES OTHER INCOMES TOTAL(a) EXPENDITURE Anx. No. A B 3310000 102000 3412000 3765000 111500 3876500 4009000 143000 4152000 2009-2010 2010-2011 2011-2012

PURCHASE TOTAL(b) GROSS PROFIT(a-b) GROSS PROFIT IN % SELLING GENERAL & ADMINISTRATION EXPENSES DEPRETIATION PROFIT BEFORE INTREST & TAX LESS:INTREST ON TERM LOAN PROFIT BEFORE TAX PROVISIN FOR TAX NET PROFIT AFTER TAX NET PROFIT RATIO ADD:DEP NET CASH ACCRUAL

D E F

2150000 2150000 1262000 38.13% 178500 346000 737500 60500 677000 40000 637000 19.24% 346000 983000

2215000 2215000 1661500 44.13% 190000 291400 1180100 48500 1131600 70000 1061600 28.20 291400 1353000

2245000 2245000 1960000 48.89% 203500 246610 1916890 36500 1880390 100000 1780390 44.41 246610 2027000

Annexure A

Annexure A

CALCULATION OF ANNUAL SALES


Particulars SALES RETAIL INVOICE SALES TAX INVOICE CASH DISC. 2009-2010 1500000 300000 50000 2010-2011 1800000 360000 80000 2011-2012 2000000 370000 82000

CLOSING STOCK VAT ON SALES EXPECTED ANNUAL SALES

1300000 160000 3310000

1350000 175000 3765000

1380000 177000 4009000 Annexure B

CALCULATION OF OTHER INCOMES


Particulars COMMISSION DIVIDEND ON SHARES INTREST ON DEBENTURES 2009-2010 56000 45000 1000 102000 2010-2011 60000 50000 1500 111500 2011-2012 70000 70000 3000 143000

Annexure C

CALCULATION OF PURCHASE
Particulars OPENING STOCK PURCHASE PURCHASE-RETAIL INVOICE PURCHASE-TAX INVOICE VAT ON PURCHASE TOTAL PURCHASE 2009-2010 700000 500000 100000 700000 150000 2150000 2010-2011 800000 450000 80000 725000 160000 2215000 2011-2012 790000 475000 95000 730000 155000 2245000 Annexure D

CALCULATION OF SELLING GENERAL & ADMINISTRATION

EXPENSES
Particulars ADVERTISEMENTS ELECTRICAL EXPENSES INSURANCE MEMBERSHIP & SUBSCRIBTIONS OFFICE EXPENSES MISCELLANEOUS EXPENSES SALARIES TELEPHONE EXPENSES TOTAL 2009-2010 5000 35000 10000 1000 6000 6500 100000 15000 178500 2010-2011 5000 36000 10000 1500 6500 6500 110000 14500 190000 2011-2012 5000 41000 10000 2000 8000 6500 115000 16000 203500

Annexure E

CALCULATION OF DEPRECIATION
Particulars MACHINARY DEP 15% Closing WDV MOTOR CAR DEP 15% Closing WDV COMPUTER SYSTEM DEP 60% Closing WDV TOTAL DEP. WDV at the end of the year 2009-2010 2010-2011 50000 7500 42500 350000 52500 297500 15000 9000 6000 69000 346000 42500 6375 36125 297500 44625 252875 6000 3600 2400 54600 291400 2011-2012 36125 5418 30706 252875 37931 214944 2400 1440 960 44789 246610

Note: Depreciation is based on the provision of Income Tax Act 1961.

Annexure F

CALCULATION OF INTEREST ON TERM LOAN


Particulars 2009-2010 2010-2011 475000 100000 375000 12% 45000 3500 48500 2011-2012 375000 100000 275000 12% 33000 3500 36500

TERM LOAN 500000 LESS: REPAID DURING THE YEAR 25000 CLOSING BALANCE DURING THE YEAR 475000 RATE OF INTREST 12% INTREST ON TERM LOAN(A) 57000 BANK CHARGES(B) TOITAL INTREST COST 3500 60500

CALCULATION OF INTEREST ON TERM LOAN (MONTHLY)

Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 161 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Opening balance 500000 481111 462411 443898 425570 407425 389461 371677 354071 336641 319385 302302 285390 268647 252072 235662 219416 203333 187411 171648 156043 140594 125299 110157 95166 80325 65633 51088 36688 22432

Interest 5000 4811.11 4624.11 4438.98 4255.7 4074.25 3894.61 3716.77 3540.71 3366.41 3193.85 3023.02 2853.9 2686.47 2520.72 2356.62 2194.16 2033.33 1874.11 1716.48 1560.43 1405.94 1252.99 1101.57 951.66 803.25 656.33 510.88 366.88 224.32

Installment 13889 13889 13889 13889 13889 13889 13889 13889 13889 13889 13889 13889 13889 13889 13889 13889 13889 13889 13889 13889 13889 13889 13889 13889 13889 13889 13889 13889 13889 13889

Closing balance 481111 462411 443898 425570 407425 389462 371677 354071 336641 319386 302302 285390 268647 252072 235662 219416 203333 187411 171648 156043 140594 125299 110157 95166 80325 65633 51088 36688 22432 8319

CAR CARE

PROJECTED BALANCE SHEET


Particulars Anx. no 2010-11 LIABILITIES CAPITAL SECURED LOAN CURRENT LIABILITIES OTHER LIABILITIES TOTAL LIABILITIES ASSETS GROSS BLOCK DEPRETIATION NET BLOCK INVESMENT CURRENT ASSETS CASH AND BANK BALANCE MISC. EXPENCES TOTAL ASSETS 200000 500000 5000 195000 900000 415000 69000 346000 50000 11000 2500 6500 900000 2011-12 200000 475000 10000 340000 1025000 346000 54600 291400 280000 38500 8000 6500 1025000 2012-13 200000 375000 15000 485000 1075000 291400 44789 246610 410000 60000 15701 6500 1075000 Projection for the years

CASH FLOW STATEMENT

Particulars Operating Activity Net Profit as per P & L Add: Non Cash item Add: Interest on loan Increase in current assets

2009-10 I
637000 346000 60500

2010-11 II
1061600 291400 48500

2011-12 III
1780390 246610 36500

(11000)

(27500)

(21500)

Increase in current liabilities Investment Activity Fixed asset purchased Financial Activity Loan from bank Proprietor Capital Less: Loan repaid during the year Interest paid on loan Opening balance of cash Excess/shortage during the year Closing balance of cash

200000 1232500 (415000) (415000) 500000 200000 (25000) (57000) 618000 ----1435500 1435500

150000 1524000 (346000) (346000) 500000 200000 (100000) (45000) 555000 1435500 1733000 3168500

150000 2392000 (291400) (291400) 500000 200000 (100000) (33000) 555000 3168500 2655600 5824100

RATIO ANALYSIS
Particulars Current Ratio=Current asset Current liability Current Ratio Acid Test Ratio= Current asset-Cash & Bank bal Current liability Acid Test Ratio Debt Equity Ratio= Total long term debt(secured loan) Capital Debt Equity Ratio 2010-11 11000 5000 = 2.2:1 11000-2500 5000 =1.7:1 = 500000 200000 = 2.5:1 2011-12 38500 10000 = 3.85:1 38500-8000 10000 = 3.05:1 = 475000 200000 = 2.38:1 2012-13 60000 15000 = 4:1 6000015701 15000 = 2.95:1 = 375000 200000 = 1.88:1

DEBT SERVICE COVERAGE RATIO Particulars Profit after tax Depreciation Non cash charge Interest on term loan TOTAL(A) Interest on term loan Repayment of term loan TOTAL(B) D.S.C.R (A/B) Interest Coverage Ratio (A/Interest) 2010-11 637000 346000 ---60500 1043500 60500 25000 85500 12.20 18.31 2011-12 1061600 291400 ---48500 1356500 48500 100000 148500 9.13 30.14 2012-13 1780390 246610 ---36500 2063500 36500 100000 136500 15.12 62.53

CAR CARE ASSESSMENT OF WORKING CAPITAL REQUIREMENT

Particulars Current Assets: Loans & Advances Cash & Bank Balance Total Current Assets(A) Total Current liabilities(B) Working Capital Gap(A-B) CAR CARE

2010-11 I 500000 2500 502500 5000 497500

2011-12 II 500000 8000 508000 10000 498000

2012-13 III 500000 15701 515701 15000 500701

MAN POWER REQUIREMENT Departments Man power Requiremen t Production: Year: 2009-10 2010-11 2011-12 Finance: Year: 2009-10 2010-11 2011-12 Other: Year: 2009-10 2010-11 2011-12 LIST OF LICENSE REQUIRE: 1. 2. 3. SSI (Small Scale Industry) License SMC Gumastadhara Service Tax 7 7 8 1 1 2 1 1 1 77000 84000 88000 14000 15000 20000 9000 11000 7000 Total Amount.

PROJECT EXPERIENCE: Our sincere and humble thanks to our BRCM College Of Business Administration and the director, Mr. Manoj Joshi and the faculty, Mr. Nikunj Shah for giving us an opportunity to experience the real feel of working in an organization. We express a sense of gratitude for the faculty of our college who has been constant source of inspiration for us through out the project work. AAKASH RAJPUT DARSHIT SHAH