PROJECT REPORT

YUVRAJ GROUPS

SOLE PROPRIETOR SHIP

PROPRIETOR:
GOKUL R.S

PREPARED BY:
JUSTIN RAJ S,
CHARTERED ACCOUNTANTS,

Contents
1. INTRODUCTION

2. SCOPE OF THE BUSINESS

3. PROFILE

4. MARKETING STRATEGY

5. FINANCIAL OUTLAY

6. ECONOMICS OF THE PROJECT

7. EPILOGUE

8. FINANCIAL DATA

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1.INTRODUCTIONS
About the Business:
Yuvraj Groups, constituted as a Sole proprietorship, is planning to do the
business of distribution of Data Card Devices , Top up, Recharge Coupons and
its related services such as SIM activation,

Bill Payments etc

of

Reliance

Telecommunication (RCOM), MTS India .

About the Proprietor:

The Firm is constituted by well dedicated and qualified individual who have
enthusiastic experience in Marketing. The entrepreneurial of the proprietor is
excellent. A brief profile of the Proprietor is summarized below;

Mr. Gokul R.S

Professionally qualified as Bachelor in Technology in Computer Science and
Certified Network Analyst, have around 7years of experience in the marketing
field. Earlier the entrepreneur had been in employment as Business Development
Manager at RSHA software technologies from 2009 to 2011 and he was Team
leader at NANDANA ASSOCIATES in one year, and also Associate sales
manager from 2013 to 2014. He also worked with LENIKO SOLUTION as
Business development and senior officer at YES BANK.

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Industry Overview:
Telecom services have been acknowledged globally as an essential tool for
the socio-economic development of a nation. India is currently the worlds
second-largest telecommunications market and has registered exceptional
growth in the past few years. The Indian mobile economy is growing rapidly and
will contribute approximately US$ 400 billion to Indias gross domestic product
(GDP), according to report prepared by GSMA in collaboration with BCG. The
rapid strides in the telecom sector have been facilitated by liberal policies of the
Government of India that provide easy market access for telecom equipment and
a fair regulatory framework for offering telecom services at affordable prices. The
deregulation of foreign direct investment (FDI) norms has made the sector one of
the fastest growing and a top five employment opportunity generator in the
country.

Products Analysis:
The Internet is the global system of interconnected computer networks that use
the Internet protocol suite (TCP/IP) to link billions of devices worldwide. It is a
network of networks that consists of millions of private, public, academic,
business, and government networks of local to global scope, linked by a broad
array of electronic, wireless, and optical networking technologies. The Internet
carries an extensive range of information resources and services, such as the
inter-linked hypertext documents and applications of the World Wide Web
(WWW), electronic mail, telephony, and peer-to-peer networks for file sharing.

Reliance Devices: Reliance Communications Ltd. (RCOM) is an Indian

Internet access and telecommunications company headquartered in Navi
Mumbai, India. It provides CDMA (CDMA2000, 1xRTT, EV-DO), GSM (Voice,
2G, 3G,4G) mobile services, fixed line broadband and voice services, DTH
depending upon the areas of operation. Reliance Communications is the fourth
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largest telecom operator in India with 109.90 million subscribers as of June

2015.[4] Established in 2002, it is a subsidiary of Reliance Anil Dhirubhai Ambani
Group. Reliance Communication IT Support is provided by Reliance Tech
Services and Telecom network is maintained and operated by Ericsson,
transmission towers are maintained by its subsidiary Reliance Infratel Thus it is
evident from the above facts that the Partnership firm will enjoy a huge potential
for growth in the industry.
Reliance Netconnect service offers you Hi-speed wireless internet access across
India in over 24,000 towns and 6 lakh villages, as well as along major highways,
railway routes, airport lounges and remote locations. Reliance's cutting edge
CDMA 1x network can give you high-speed internet access, up to 144kbps.
Reliance offers Hi-Speed 1x service through a suite of Reliance Netconnect
products like PCMCIA and USB Modem data cards as well as data cables for
mobile phones and fixed wireless phones. These can be used to connect to the
internet from your laptop and desktop.
Features

Uninterrupted high-speed wireless internet connectivity, across 24,000

towns, 6 lakh villages and counting more.

Better surfing speeds, with download speeds up to 144 kbps.

Upto four times faster speeds than dial-up.

SMS and voice services

Easy Top up vouchers:-

It is critical for the growth of any prepaid service provider to offer many quick
and easy ways for its customers to recharge their prepaid accounts. Since,
prepaid businesses for mobile and other service providers are rapidly growing
worldwide, the volume of transactions is very large and service providers need,
not only feature rich systems, but also systems which are highly scalable and
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robust and can effectively handle extremely high volumes with uptimes in excess
of 99.99%

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2. SCOPE OF THE BUSINESS

Mobile industry in India is the fastest growing industry with lot of opportunity
to grab ahead. Factors responsible for the growth of the industry:
Growing income of the middle-class families.
Popularity of mobile based services like online ticket booking.
Low rate mobile connection plans.
Technological advancement.

Market Size:
Telecommunications is one of the prime support services needed for rapid
growth and modernization of various sectors of the economy. Driven by strong
adoption of data consumption on handheld devices, the total mobile services
market revenue in India will reach US$ 29.8 billion in 2014 and is expected to
touch US$ 37 billion in 2017, registering a compound annual growth rate (CAGR)
of 5.2 per cent, according to research firm IDC.
According to a study by GSMA, it has been expected that smart phones will
account for two out of every three mobile connections globally by 2020 and India
is all set to become the fourth largest smart phone market.
India is projected to have 213 million mobile internet users by June 2015, a 23
per cent rise over a six month period, according to Mobile Internet in India 2014
report.
The broadband services user-base in India is expected to grow to 250 million
connections by 2017, according to the UK-based GSM Association (GSMA).
India saw the fastest growth in new mobile-phone connections with 18
million net additions in the third quarter of 2014, followed by China with 12
million new additions, according to a report by Swedish mobile network
equipment maker Ericsson.
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The Indian telecom sector is expected to create four million direct and
indirect jobs over the next 5 years on the back of the governments efforts to
increase penetration in rural areas along with the growth in the smart phone
numbers and internet usage, according to estimates by Randstad India.

Government Initiatives:
The government has fast-tracked reforms in the telecom sector and plans to
clear the proposal allowing spectrum trading and sharing ahead of the year-end
deadline as it wants to lift the business sentiment for the forthcoming airwave
auction. Some of the other major initiatives taken by the government are as
follows:

Citizens of India are expected to get a minimum of 2 megabits per second

(MBPS) Wi-Fi speed at every government owned service point such as railways
stations, airports, bus stops, hospitals and all government departments that deal
with the public on a daily basis.

The Union Cabinet of India has approved the largest ever telecom

spectrum auction that is targeted to fetch at least Rs 64,840 crore (US$ 10.43
billion). The government will sell 380.75 megahertz (MHz) of second generation
(2G) spectrum in three bandsthe premium 900 MHz, 1800 MHz and 800 MHz.

To speed up the national optical fibre network (NOFN) project, the

Department of Telecommunications (DoT) has advised officials to use public

buildings such as post offices, railway stations and schools.

The Government of Kerala has decided to allow mobile telecom service

providers to set up towers on government land and buildings. This is the first
time that a State Government has opened its own land, buildings and offices to
mobile companies

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Road Ahead:
India will emerge as a leading player in the virtual world by having 700
million internet users of the 4.7 billion global users by 2025, as per a Microsoft
report.
With the governments favourable regulation policies and 4G services hitting
the market, rapid growth is expected in the Indian telecommunication sector in
the next few years.
The project is highly feasible due to steady sales, good margin and good
potential of the products. These factors motivated the Proprietor to entire in to
this venture of distribution of Data Card Devices, Top Up, Recharge Coupon, and
related Services. Hence project is more feasible and highly viable.

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3. PROFILE

NAME OF THE PROJECT

YUVRAJ GROUPS

STATUS OF THE FIRM

SOLE PROPRIETORSHIP

NAME OF THE PROPRIETOR

GOKUL R.S

BUSINESS ADDRESS

TC 35/2319 (1),THOPPUMUKKU
JUNCTION,VATTIYOORKAVU,
TRIVANDRUM-695013

CAPITAL
This venture requires a total capital of Rs.5,50,000/-, out of which the
Proprietor invests Rs.2,50,000/- as capital. The balance amount of Rs.3,00,000/will be obtained by means of loan from bank.

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4. MARKETING STRATEGY

Marketing strategy is a process that can allow an organization to

concentrate its resources on the optimal opportunities with the goals of
increasing sales and achieving a sustainable competitive advantage. Marketing
strategy includes all basic and long-term activities in the field of marketing that
deal with the analysis of the strategic initial situation of a company and the
formulation, evaluation and selection of market-oriented strategies contributes to
the goals of the company and its marketing objectives.

Location of the Firm:

Location of the firm gives add on advantage because the poise of this
place gives more for the business. The firm is located in the heart of the city of
Trivandrum and thus blessed with lot of advantages. It is a marketing medium
that allows for various touch points of communication or messaging. Also
Demographic in this area is another advantage to this project.
In short, Service, distribution and price are the key factors which contribute
our strategy to achieve the organizational objective within a stated time frame.

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5. FINANCIAL OUTLAY
The Project Cost comes about Rs.5,50,000/-, the proprietor are not able to raise
the entire amounts and they are in requirement of financial assistance, hence this
report. The project cost is arrived considering the cost of buying of working
capital requirement. Out of total capital investment of Rs.5,50,000/- the
proprietor are estimating a bank loan of Rs 3,00,000/- by means of working
capital loan, which comes 55 % of the capital investments / project cost.

PROJECTED RATIOS & FINANCIALS:

1st Year

2nd Year 3rd Year 4th Year

5th year

Net Profit Ratio

0.27

0.54

0.77

0.95

1.24

DSCR

1.38

1.49

1.69

1.87

2.27

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6. ECONOMICS OF THE PROJECT

WORKING RESULTS AND PROFITABILITY

The Annual Net Income is derived from the Sale of Top up vouchers, Data
card and providing related services during the first 5 years is estimated in the
financial data.

PROJECTED CASH FLOW STATEMENT

Cash flow statement is basically an analysis of sources of availability of
funds, extent of their utilization and availability of surplus funds or deficit at the
end of each year of operation. During the initial period funds are available as
bank loan from financial institution and utilized for working capital requirement.
The surplus remains with the business as cash and bank balance. The projection
of cash flow of the business during the first 5 years is given in the financial data.

PROJECTED BALANCE SHEET

The balance sheet of a business unit is very important feature of the working
of the unit. In a healthy unit, there is always a growth in total assets and liabilities
in every year. In a projected balance sheet, the capital on the liability side and net
working capital show healthy growth. The estimation is given in the financial
data.

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7. EPILOGUE

In short, it can be concluded that this project is technically feasible and

financially viable. The project ensures maximum safety to the investor and helps
the investors to enjoy unexpected returns even in short periods. The repayment
schedule clearly shows the higher degree of credit worthiness enjoyed by the
proprietor, which can easily meet the credit obligation to financial institution and
bringing a steady return to the investors. The total project cost is estimated to be
Rs.5,50,000/-. The proprietor are able to contribute only Rs.2,50,000/-. The
balance of Rs.3,00,000/- is expected through financial assistance provided by
bank in form of loan.
The Nature of business of YUVRAJ GROUPS is on cash and carry basis
there with realization in cash and not in credit basis, Hence the cash to cash
cycles is very minimal. This result in zero trade payable and trade receivable,
henceforth Current ratio in Yuvraj groups is high.
Any financial institution with a strong vision of promoting new and
enthusiastic professional will support this venture with a high degree of
confidence.

The fruit of this venture largely depends upon the financial

assistance of the visionary financial institutions.

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8. FINANCIAL DATA

COST OF PROJECT

PROJECTED BALANCE SHEET

PROJECTED PROFITABILITY STATEMENT

PROJECTED CASH FLOW STATEMENT

FIXED ASSETS SCHEDULE

SCHEDULE FOR WORKING CAPITAL

SCHEDULE FOR REPAYMENT OF LOAN

DEBT SERVICE COVERAGE RATIO

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