PROJECT REPORT

Of

COMPUTER TRAINING INSTITUTE

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Computer training Institute.

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.

[We can modify the project capacity and project cost as per your requirement. We can also prepare
project report on any subject as per your requirement.]

Lucknow Office: Sidhivinayak Building ,

27/1/B, Gokhlley Marg, Lucknow-226001

Delhi Office : Multi Disciplinary Training

Centre, Gandhi Darshan Rajghat,
New Delhi 110002

Email : [email protected]
Contact : +91 7526000333, 444, 555
 COMPUTER TRAINING INSTITUTE

1. INTRODUCTION

With growing use of computer and its software for various applications at business, schools,
hospitals, colleges, restaurants, hotels etc., the traditional job profiles have been defined in
different manner and that includes Computers and Its Software at its core. More and more
usage of computers in various industries makes easier and smoother tasks for business.
Automobile sector uses CAD/CAM like design software for better accuracy. Hospitals use
various computer applications for analysing diagnosis reports, managing customer’s case
history, accounting/billing and managing with insurance agency. Traders/manufacturers
keep computer software for inventory control, logistics management, accounting, after sales
services. At every single department of various sectors, computer has become integral part.

2. SERVICES AND ITS APPLICATION

Computer training institute will provide various courses for students and employees who
want to upgrade their job profiles. List of courses will be as under:

CorelDraw Adobe Creative Suite Microsoft Specialization

Oracle DB MS Excel Advanced Animation Tools
CAD/CAM Tally ERP Cisco – Networking Course
Cloud Specialization VMware / Citrix Software Development
Computer Hardware & Assembly Big Data Certification Programmes

3. INDUSTRY LOOK OUT AND TREND

Information processing has become one of the most significant industries in the world in the
recent past. In view of its tremendous potentialities for information processing data
management, design, production, management and other various application for overall
development of the economy. There is a growing need for trained manpower in this area. As
such there may be a large potential for software experts in the coming years.

4. MARKET POTENTIAL AND MARKETING ISSUES. IF ANY

The computer software is divided into two groups’ viz. System software and Application
Software. The system software is used for application development. It operates and
interfaces with system software. Application software has wide scope for development than
system software. The widely used application software is word processors, spread sheets
and databases. Software like spread-sheets has simplified task of budgeting financial
analysis, forecasting less time consuming, efficient, accuracy, simple and easy job. The
database software has revolutionised the data management of storing, organising and
retrieving information from large source of data.

5. RAW MATERIAL REQUIREMENT

Sr. No. Description QTY Cost/Unit Total Amount

1 Computers, Advanced Software & 25 ₹ 30,000.00 ₹ 7,50,000.00
Technologies
2 Advanced Software with Licence 25 ₹ 10,000.00 ₹ 2,50,000.00
3 Colour Printer cum Photocopier cum Scanner 1 ₹ 35,000.00 ₹ 35,000.00
4 Hardware tools for Assembly Lab 10 ₹ 8,500.00 ₹ 85,000.00
5 Inverter 25 ₹ 3,500.00 ₹ 87,500.00
6 Air Conditioner 2 ₹ 28,000.00 ₹ 56,000.00

6. SERVICES PROCESS OUTLINE

The programmes being conducted by the centre are advertised regularly in the local
newspapers, etc. The selected candidates are guided by professional counsellor for the
course suitable for them depending on their background. They are also provided with the
detailed programme indicating content of the course, duration, course fees. The course
material will be given to the selected candidates. Students get normally 50% of the course
time on computers. The institute will also provide additional computer time for undertaking
projects. The centre may also offer placement assistance to the students in various
corporate sectors. Besides the training, the centre can also undertake separately data
processing work.

7. MAN POWER REQUIREMENT

SR. No Designation Salary Amount Total Amount

1 Supervisor cum Coordinator (1) 20,000 INR 20,000 INR
2 Educator / Tutor (5) 15,000 INR 75,000 INR

8. IMPLEMENTATION SCHEDULE

Finding a location and finalizing office for rent can take around 6-8 weeks. Procuring
equipment for services offering can be done parallel and generally takes 6-8 weeks.
Furniture and set up of office will take around another 3-4 weeks. The whole business with
well researched can be setup easily in 12-14 weeks.

9. COST OF PROJECT

Sr. No. Particulars Amount in Rs

1 Land ₹ 0.00
2 Building ₹ 0.00
3 Equipment/ Other fixed investment ₹ 13,68,500.00
4 Working Capital Margin (3 Months) ₹ 4,03,500.00
5 Total Cost of Project ₹ 17,72,000.00

(a) FIXED CAPITAL CALCULATION

Sr. No. Description QTY Amount Total

1 Computers, Advanced Software & 25 ₹ 30,000.00 ₹ 7,50,000.00
Technologies
2 Advanced Software with Licence 25 ₹ 10,000.00 ₹ 2,50,000.00
3 Colour Printer cum Photocopier cum Scanner 1 ₹ 35,000.00 ₹ 35,000.00
4 Hardware tools for Assembly Lab 10 ₹ 8,500.00 ₹ 85,000.00
5 Inverter 25 ₹ 3,500.00 ₹ 87,500.00
6 Air Conditioner 2 ₹ 28,000.00 ₹ 56,000.00
7 Internet Infrastructure and Electrification LS ₹ 15,000.00 ₹ 15,000.00
8 Furniture LS ₹ 90,000.00 ₹ 90,000.00
Total ₹ 13,68,500.00

(b) WORKING CAPITAL CALCULATION

Sr. No. Description Total

1 Salary ₹ 95,000.00
1a Entrepreneur ₹ 20,000.00
1b Educator/Trainer - 5 @ Rs 15,000 per Month ₹ 75,000.00
2 Raw Material ₹ 8,800.00
2a Internet Connection Charges ₹ 1,500.00
2b Subscription Renew for Software ₹ 4,500.00
2c Paper Ream (500 Pages) (70 GSM) ₹ 1,300.00
2d Ink cartridge refilling, Powder for toner refilling ₹ 1,500.00
3 Utilities ₹ 9,000.00
3a Power ₹ 8,000.00
3b Water ₹ 1,000.00
4 Other Expenses ₹ 6,700.00
4a Advertising/Marketing/Social Media ₹ 800.00
4b Stationery ₹ 1,200.00
4c Telephone ₹ 700.00
4d Repair and Maintenance ₹ 3,000.00
4e Insurance ₹ 500.00
4f Misc. ₹ 500.00
5 Rent ₹ 15,000.00
Total ₹ 1,34,500.00

10. MEANS OF FINANCE

Sr. No. Description Percentage Amount (Rs)

1 Promoter's Contribution 25% ₹ 4,43,000.00
2 Term Loan/Bank Finance 75% ₹ 13,29,000.00
Total ₹ 17,72,000.00
(a) Cost of Operation

Sr. No. Particulars Amount in Rs

Variable Cost
1 Raw Material and Other direct inputs ₹ 15,500.00
2 Salary (60%) ₹ 57,000.00
3 Power (70%) ₹ 6,300.00
Variable Cost 1 Month ₹ 78,800.00
Total Annual Variable Cost ₹ 9,45,600.00
Fixed Cost
1 Overheads ₹ 15,000.00
2 Salary (40%) ₹ 38,000.00
3 Power (30%) ₹ 2,700.00
Sub Total ₹ 55,700.00
Total for 12 Months ₹ 6,68,400.00
4 Interest ₹ 1,59,480.00
5 Depreciation on Equipment @ 10% ₹ 1,21,350.00
6 Depreciation on Furniture @ 20 % ₹ 18,000.00
Total Fixed Cost ₹ 9,67,230.00
Total Cost of Production ₹ 19,12,830.00

(b) Turnover

Price per No of Revenue per

Sr. No. Description UOM
Unit Students Month
per Course per
1 Course Fee ₹ 2,500.00 125 ₹ 3,12,500.00
Student per Month
Total Yearly Gross Income ₹ 37,50,000.00
 11. WORKING CAPITAL REQUIREMENTS

Sr. No. Particulars Amount in Rs

1 Raw Material and Other direct inputs ₹ 15,500.00
2 Salary ₹ 57,000.00
3 Power ₹ 6,300.00

12. LIST OF MACHINERY REQUIRED

Sr. No. Description QTY Amount Total

1 Computers, Advanced Software & 25 ₹ 30,000.00 ₹ 7,50,000.00
Technologies
2 Colour Printer cum Photocopier cum Scanner 1 ₹ 35,000.00 ₹ 35,000.00
3 Hardware tools for Assembly Lab 10 ₹ 8,500.00 ₹ 85,000.00
4 Inverter 25 ₹ 3,500.00 ₹ 87,500.00
5 Air Conditioner 2 ₹ 28,000.00 ₹ 56,000.00

13. PROFITABILITY CALCULATIONS

Specification Amount

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%

Profitability Projection

Year Wise estimates At Full

Sr. No. Particulars UOM
Year 1 Year 2 Year 3 Year 4 Year 5 Capacity
Capacity
1 % 30 40 50 60 70 100
Utilization
2 Sales Rs Lakhs ₹ 11.25 ₹ 15.00 ₹ 18.75 ₹ 22.50 ₹ 26.25 ₹ 37.50
3 Raw Materials & Rs Lakhs ₹ 2.84 ₹ 3.78 ₹ 4.73 ₹ 5.67 ₹ 6.62 ₹ 9.46
 Other Direct
Inputs
4 Gross Margin Rs Lakhs ₹ 8.41 ₹ 11.22 ₹ 14.02 ₹ 16.83 ₹ 19.63 ₹ 28.04
Overheads Except
5 Rs Lakhs ₹ 6.68 ₹ 6.68 ₹ 6.68 ₹ 6.68 ₹ 6.68 ₹ 6.68
Interest
6 Interest Rs Lakhs ₹ 1.59 ₹ 1.59 ₹ 1.59 ₹ 1.59 ₹ 1.59 ₹ 1.59
7 Depreciation Rs Lakhs ₹ 1.39 ₹ 1.39 ₹ 1.39 ₹ 1.39 ₹ 1.39 ₹ 1.39
Net Profit Before
8 Rs Lakhs -₹ 1.26 ₹ 1.55 ₹ 4.35 ₹ 7.15 ₹ 9.96 ₹ 18.37
Tax
10.30 23.20 31.80
9 Profit % -11.19% 37.94% 48.99%
% % %

The basis of profitability calculation:

This unit will have capacity to provide training to 1500 students in various computer
programs throughout the year.

The cost of this course would be 2500 INR/Month. Students can subscribe multiple course at
the same time too, according to the timetable and course schedules.

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.

14. BREAKEVEN ANALYSIS

Sr. No. Particulars UOM Value

1 Sales at Full Capacity Rs Lakhs 37.50
2 Variable Costs Rs Lakhs 9.46
3 Fixed Cost incl. Interest Rs Lakhs 9.67
4 Break Even Capacity % of Installed 34.49
BEP = FC/( Sales -Variable Cost) *100 Capacity
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN assume no
financial liability to anyone using the content for any purpose. All the materials and content
contained in Project report is for educational purpose and reflect the views of the industry
which are drawn from various research material sources from internet, experts, suppliers and
various other sources. The actual cost of the project or industry will have to be taken on case
to case basis considering specific requirement of the project, capacity and type of plant and
other specific factors/cost directly related to the implementation of project. It is intended for
general guidance only and must not be considered a substitute for a competent legal advice
provided by a licensed industry professional. SAMADHAN hereby disclaims any and all
liability to any party for any direct, indirect, implied, punitive, special, incidental or other
consequential damages arising directly or indirectly from any use of the Project Report
Content, which is provided as is, and without warranties.