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Project Report
Submitted By
Himanshu Ahire 13
Trimester 4
Symbiosis Institute of Management Studies
MobiSoft Pvt. LTd
Table of Contents
Executive Summary! 3
About Promoter! 4
The Business! 5
Vision! 6
Mission! 6
Our Values! 6
Strength! 11
Weaknesses! 12
Opportunities ! 12
Threats! 12
Market Segmentation! 12
Future Trends! 14
Initial Cost! 16
Internal Features ! 16
Employee Cost! 20
Sources Of Funds ! 23
Profit Rational! 23
Payback Period! 29
Conclusion! 30
Bibliography! 31
Executive Summary
We are here to provide quality Mobile Software development services to our clients. We
aimed to provide quality development at low prices there by providing value for their money.
We aim to keep abreast with the fast paced wireless industry, where technology changes
occur almost every other day. After expansion of the firm the company will begun to satisfy
bigger clients with its quality services.!
We will strive hard to fulfill our customer’s requirements through a customized route.
• On Contract Development
Photo Of Promoter
About Promoter
In the year 1998, he joined software development firm as a Developer & in less than 10
years became vice president of AAA. In 2007 he started one of the consultancy firm in
mobile technology business called MobTech.
“If you can dream it, you can do it!” A strong believer in the power of the ‘organizational
subconscious’ and 'common destiny', he is the architect behind "MobTech" one of the
famous mobile Technology consultancy firm. MobTech continues to involve and inspire one
and all in the mobile software Industry.
His hobby, in his own words, is "Dreaming". He attributes MobiTech’s success to the power
of alignment at the organizational sub consciousness. He is a voracious reader and enjoys his
learnings on anthropology, philosophy, and religion and child psychology. He believes strongly
in people power and often says, “With committed people you can achieve what most people
think is impossible’’.
The Business
Mobisoft Pvt. Ltd will be an independent mobile Software development company that will
deliver a complete range of software development services to the customers. We aim to
keep abreast with the fast paced wireless industry, where technology changes occur almost
every other day. We aim to develop knowledgeable experts are
Mobisoft Pvt. Ltd will have a team of passionate professionals with skills in cutting edge
mobile software technology. The company will have employees with a high level of expertise
in mobile software development solutions. Which will lead us in a position to understand the
needs of our clients and suggest them for the best platforms to take their applications to to
the new heights of success.
• On Contract Development
Vision
• To have impeccable Integrity in all our business practices with our customers, our
suppliers, our employees, our investors, and the communities we work in. This means
being Truthful and Honest at all times in every situation.
• To work in an environment of trust, respect, and mutual cooperation with our suppliers and
business partners.
• Our vision is to provide the utmost integrity and client satisfaction through our services,
creating lasting relationships with our clients while providing ideal working environments for
our employees to help us become a dominant IT software solutions provider.
Mission
The Mobisoft Pvt. Ltd mission is to create competitively priced, high quality Mobile software
solutions that increase business value and improve business processes for all clientele.
Our Values
• Integrity
• Innovation
• Quality
• Commitment
• Reliance
• Relationships
• The number of telephone subscribers in India increased from 562.16 Million at the end of
Dec-09 to 621.28 Million at the end of Mar-10, registering a growth of 10.5%. The overall
Teledensity in India has reached 52.74 as on 31st March 2010.
• Subscription in Urban Areas grew from 387.63 Million at the end of Dec-09 to 420.47
Million at the end of Mar-10, taking the urban Teledensity from 110.96 to 119.73. Rural
subscription increased from 174.53 Million to 200.81 leading to increase in Rural
Teledensity from 21.16 to 24.29, during this period.
• About 56% of the total net additions have been in urban areas as compared to 57% in the
previous quarter. This, in other words implies a rapid increase in rural subscriptions during
the quarter. However, this uptake in rural subscription is in wireless segment. The share of
rural subscribers has increased to 32.3%
in total subscription from 31% in Dec-09.
In Above table we can see that Wireless Subscriber base has increased substantially in last
year by 49.15%. This means addition of 193 Million Subscribers in a year. Hence we can see
that industry is growing at massive speed.
With above chart we can notice that substantial number of connections are from Urban area
but recently rural market share is increasing with small percentage.
Above chart we can clearly see growth path of Internet & broad Band Subscribtion
In above table we can see that Wireless data Subscribers are dramatically increased in year
by 50.97%. This means addition of 60 million subscriber for mobile internet. With such a
fast growth fueled by latest 3G technology & every reducing wireless internet prices we can
say that there is tremendous growth potential for mobile software services.
With Above chart we can see that Most number of internet users are from Maharashtra ,
Delhi & followed by Tamilnadu. Hence we can see that Maharashtra tops the list of internet
subscribers. Hence the bulk number of potential clients will be from Maharashtra, Delhi &
Tamilnadu.
Strength
Weaknesses
• Market strongly regulated by Govrenment body – Governing both ISP and Telecom sectors
• Wide spread VAS deployment is restricted due to language and literacy problems
Opportunities
• M-Commerce
Threats
• Regulatory interference
Market Segmentation
• Almost 63 million urban Indians accessed Internet using their phone in February, 2009.
• Checking emails and searching! information using search engines are the two most
popular reason cited by almost 3 in 4 urban Indians.
• 16 million urban Indians access Internet on their phone almost on a daily basis.
• 45 million urban Indians mentioned voting in reality TV shows, the most popular SMS
contest/vote type followed by voting in news polls (31.64 million).
Future Trends
Mobile interconnected industries are every day coming up with fresh and ground – breaking
mobile technologies. Mobile VAS accounts to 10-12% of the total telecom revenues. Over
375 million mobile subscribers in India, out of which 8-10% of the total mobile subscribers
are expected to be GPRS (General Packet Radio Services) subscribers as well.
As in any other engineering discipline, software engineering also has some structured models
for software development. A software development process is a structure imposed on the
development of a software product. Following is the list of processes which required to be
followed for software development.
2.Requirement analysis
6.Finalizing Terms
11.Testing
15.Maintenance
IT Infrastructure includes
1. Office Premises
2. Board-band connectivity
6. IT Service Desk
1. Office Premises
Office Premises is one of the most important component of IT Infrastructure. Promoter has
adopted a strategy to rent office premises to minimized initial setup cost provided following
utility services are available
Internal Features
• Conference room
• Power Back-up
• Intercom Facility
• Washrooms
• Fully Furnish
External Features
• Reserved Parking
• Security Personnel
• Maintenance Staff
Additional Features
As per the property survey Such a property in Pune IT area will cost around R.s. 150000 -
R.s. 200000 per month based on location.
2000 Sq. Ft., Commercial Office/Space in Senapati Bapat Road - 2 Lacs per month
2300 Sq. Ft., Commercial Office/Space in Viman Nagar, Pune - 1.5 Lacs per month
2000 Sq. Ft Commercial Office/Space in Baner , Pune - 1.3 Lacs per month
With all above options promoters have opt for Viman Nagar location. Yearly Cost 18,00,000
2. Board-band connectivity
Total 1,00,000
3. Computer hardware
Dedicated Hosting Servers : These are third party own dedicated servers which are
remotely located & connected via internet which reduces maintains cost.
Quantity : 2
Provided by : Host.co.in
Printers / Projectors :
Company : HP
1. Testing Softwares
3. Office Suites
Employee Cost
Success of any software business largely depends upon right people for right job. It is
essential to hired knowledgeable professional consultant to develop quality software.
18)Administration
19)Finance
20)Marketing
Salary : N.A.
Server Administration
Hardware & Software administration is specialized job & required knowledge dedicated
employee for same.
Project execution staff is most important staff of a business. They are responsible for
design,developing, testing of software.
System Architect : Senior member of team responsible for design of system & management
of team.
Developer 10 2500000
Testing 2 300000
System Architect/Team Lead 2 1200000
Administrator 1 200000
Reception /Security 2 150000
Total Cost 4350000
1. Selling Expense : Client Meetings, Product Demonstration & demo versions of softwares
2. After Sales Support : After sales service includes Issue Resolution & Technical help.
Sources Of Funds
Promoter of Business will bring 2000000 as as Capital in business. This capital will be
arranged by promoter with their own savings.
Term loan : The remaining Capital Requirement will be Financed by Term loan for 5 Years.
Promoters personal property will be given as security for this loan.
Profit Rational
In General Per hour & per person rates quoted for Software development as follow.
Small Projects are small in size & they are not much complex. This reduce overall risk
associated with project. They can be completed with Team size of 3 to 4 members without
much complexity. At the initial stages of the firm. The main focus will be to bring as much as
small projects possible. Small Project generally requires Around 750 man hours details of
which are given in above table.
Medium Projects are slightly bigger in the size compare to small projects. they are relatively
simple to understand. There is slight risk of delays are associated with medium size project.
They can be completed with Team size of 5 to 6 members without much complexity. At the
initial stages of the firm. The main focus will be to bring as much as mdedium projects
possible. As they are provide lot of cash-flows at relatively less time. Medium Project
generally requires Around 1500 - 1800 man hours details of which are given in above table.
Large Projects are bigger in the size compare to medium projects. They are fairly complex to
understand. There is always risk of delays associated with Large size project. They can be
completed with Team size of 10 to 15 members. At the later stages of the firm. The main
focus will be to bring as much as large projects as possible. As they are provide fixed cash-
flows for longer duration. Large Project generally requires Around 4000 man hours details of
which are given in above table.
Global Projects are huge in the size. They have multiple levels of complexities. Generally
development teams are spread across different countries. There is inherient risk of delays
associated with global size project. They can be completed with Team size of 50 to 100
members. These projects are currently not consider by firm as they required huge initial
investment also returns from these projects can spread into multiple years. Large Project
generally requires Around 10000 man hours details of which are given in above table.
Full Payment realization may take 3 to 6 months depending upon length of a project. Hence
average Debtors are assume to be 1/4 of the total sales
Expenditure
Server Administration Cost 1,30,000 1,30,000 1,30,000
Office & Administrative 35,000 78,000 85,000
expense
Salary of Staff 43,50,000 47,85,000 52,63,500
Rent 23,00,000 18,00,000 18,00,000
Preliminary expense W. off 2,00,000 2,00,000
Interest 4,80,000 4,80,000 4,80,000
Selling & Distribution 1,80,000 2,40,000 3,70,000
Depreciation 2,60,000 1,30,000 65,000
Total Expense 77,35,000 78,43,000 83,93,500
Profit/Loss Before Tax (3,80,000) 82,27,000 97,91,500
Tax Paid @ 15% (MAT) 0 11,77,050 14,68,725
Profit After Tax (3,80,000) 70,49,950 83,22,775
Balance carried to balance sheet (3,80,000) 70,49,950 83,22,775
Application of Funds
Fixed Asset
Gross Block 520000 520000 520000
Less : Depreciation 260000 390000 455000
Net Block 260000 130000 65000
Capital Work in Progress & Advances 0 0 0
Payback Period
Total 1,02,66,475
Cash Flow Remain for 3rd Year : 60,00,000 - 22,07,450 = 3792550 R.s. need to recover in
3rd Year.
Hence Time Required to Recover Remain Amount = 12* 3792550/ 8059025 = 5.6
Year Cash In Cash Out Net Out Flow Discount Factor Discounted Cash
Flow
Year Cash In Cash Out Net Out 12% 15% 20% 18.62%
Flow
Since IRR of Project is Higher than cost of capital Project will be profitable.
Conclusion
Mobile Software Development business is one of the fastest growing business supported by
extraordinary growth in subscriber based. With such a exciting opportunities available India
is also one of the biggest software hub in World. Which will provide access to young
competent talent pool at relatively low cost. Which makes this possible to provide cutting age
products & services at very low prices. Providing better value for money for customers.
MobiSoft has adopted proven business model to provide cutting edge solutions at very low
prices which will deliver cash-flow from first year itself. Promoters has consider every
possible solution to keep fixed cost down & provide resources where its required most.
Bibliography
www.trai.gov.in/
www.en.wikipedia.org/wiki/Wiki
www.99acres.com
www.magicbricks.com
www.tataindicom.com
www.bsnl.co.in
www.rcom.co.in/
www.webhostingchoice.com
www.ibeehosting.com
www.mca.gov.in
www.legalserviceindia.com/