Project Report

Sharma Electronics & Repair Services

Consumer electronics repair, servicing & spare-parts retail

Vaishali Nagar, Jaipur, Rajasthan

SchemeMUDRA Tarun

Loan applied for₹8,00,000

Total project cost₹10,00,000

ConstitutionSole Proprietorship

Submitted to the Branch Manager · Punjab National Bank, Vaishali Nagar, Jaipur

Executive Summary

Name of the unit: Sharma Electronics & Repair Services
Constitution: Sole Proprietorship
Promoter: Suresh Sharma (34 years)
Address of unit: Shop No. 12, Ground Floor, Vaishali Nagar, Jaipur — 302021
Nature of activity: Consumer electronics repair, servicing & spare-parts retail
NIC code: 9521 — Repair of consumer electronics
Scheme applied under: Pradhan Mantri MUDRA Yojana — Tarun
Total project cost: ₹10,00,000
Term loan requested: ₹8,00,000 (80%)
Promoter's contribution: ₹2,00,000 (20%)
Repayment: 60 monthly instalments @ 10.50% p.a.

The unit has been in operation since 2019 and currently services 20–25 jobs a day from a 350 sq.ft. ground-floor shop, with a recorded customer base of 600+ households in the Vaishali Nagar catchment. The promoter proposes to expand the workbench capacity, add board-level diagnostic equipment and carry a spare-parts inventory so that 70% of repairs can be completed same-day instead of the present 3-day turnaround.

The project is assessed at a cost of ₹10.00 lakh, financed by a ₹8.00 lakh MUDRA Tarun term loan and ₹2.00 lakh of promoter's own contribution (20%). At the projected turnover the unit services its debt 5.87 times over on average, against the 1.25 minimum, and breaks even at 62% of Year-1 sales — leaving substantial cushion against a demand shortfall.

Recommendation: the proposal is technically feasible, commercially viable and financially sound. It is recommended for sanction of a term loan of ₹8.00 lakh repayable in 60 monthly instalments.

Promoter / Applicant Profile

Name: Suresh Sharma
Father's name: Rameshwar Sharma
Date of birth: 15 March 1991
PAN: BXRPS7264K
Aadhaar: XXXX XXXX 4521
Category: OBC
Educational qualification: B.Com (2012); Diploma in Electronics, ITI Jaipur (2010)
Experience: 3 years as service technician at an authorised service centre; 6 years running the present unit
Residential address: H. No. 47, Sector 7, Vaishali Nagar, Jaipur — 302021
Existing borrowings: Nil
CIBIL score: 762 (report enclosed — Annexure VIII)

The promoter holds a trade diploma in electronics and has nine years of cumulative experience in the line of activity, three of them at an authorised brand service centre where he was trained on board-level diagnostics. The proposed activity is a direct extension of his existing, running business — there is no new-line risk.

Business Description & Activity

The unit carries out repair and servicing of mobile phones, laptops, televisions and small home appliances, and retails spare parts and accessories over the counter. Revenue accrues from two streams: service charges (labour) and sale of spares and accessories.

Process flow

Job intake and fault registration — a job card is raised and an SMS/WhatsApp acknowledgement is sent to the customer.
Diagnosis on the test bench; board-level faults are routed to the rework station.
Estimate approval by the customer, followed by parts issue from stores against the job card.
Repair, 24-hour burn-in test, quality check and billing.
Delivery with a 90-day warranty on the repair performed.

Proposed expansion

Additional 200 sq.ft. taken on rent adjoining the existing shop (agreement enclosed).
BGA rework station enabling board-level mobile and laptop repairs currently outsourced to Delhi.
Spare-parts inventory of ₹1.86 lakh so that fast-moving parts are in stock.
Two additional technicians and one counter assistant.

Market Analysis & Competition

India's consumer-electronics after-sales and repair market is estimated at ₹45,000 crore and is growing at about 9% a year, supported by rising device density per household and the Government's Right to Repair framework notified in 2022, which requires manufacturers to make spares and manuals available to independent repairers.

Local catchment

Vaishali Nagar and adjoining sectors hold approximately 12,000 households within a 3 km radius.
The nearest authorised multi-brand service centre is 4.2 km away, in Jhotwara.
Three unorganised repair shops operate within the catchment; none offers board-level repair.
Two residential projects adding about 3,000 households are due for possession within 1 km.

Competitive position

Nine years of local goodwill with 85% repeat customers and a 4.8/5 rating over 42 reviews.
Same-day delivery on 70% of jobs post-expansion, against 3 days at present.
Board-level repair capability that no competitor in the catchment currently has.
Service rates 40–60% below authorised centres for out-of-warranty devices.

Selling arrangement: walk-in retail, supported by a WhatsApp job-booking line and doorstep pick-up and drop within 3 km. No dependence on any single institutional buyer.

Project Cost

Cost of the project

Particulars	Basis	Amount (₹)
Renovation & civil work	200 sq.ft. additional area, electrical, ESD flooring	1,20,000
Diagnostic & repair equipment	As per quotations — Annexure IX	2,40,000
Computers, software & service tools	2 systems, billing software, tool kits	80,000
Furniture, air-conditioning & display fixtures	Counter, racks, 1.5 T AC	60,000
Margin money for working capital	Stock, receivables & operating cash	5,00,000
Total project cost		10,00,000

A 5% contingency is built into the civil and equipment estimates. All capital items are supported by three quotations each.

Means of Finance

Means of finance

Source	Amount (₹)	% of project cost
Promoter's own contribution	2,00,000	20.00%
Term loan under MUDRA Tarun	8,00,000	80.00%
Subsidy / margin money grant	Nil	—
Total	10,00,000	100.00%

Promoter's contribution is held in Savings A/c No. XXXXXX4417 with Punjab National Bank, Vaishali Nagar (statement enclosed). Debt–equity at inception is 4.00 : 1, improving to 1.65 : 1 by the end of Year 1.

For PMEGP, PMFME, NABARD and state-subsidy proposals this section additionally carries the margin-money subsidy workings, the subsidy-adjusted repayment and a second DSCR computed net of subsidy.

Machinery & Equipment

Plant, machinery and equipment proposed

Equipment	Qty	Rate (₹)	Amount (₹)
BGA rework station with preheater	1	95,000	95,000
Digital storage oscilloscope with probes	1	45,000	45,000
Universal IC programmer	1	35,000	35,000
Ultrasonic PCB cleaning unit	1	22,000	22,000
Soldering / desoldering stations	3	8,000	24,000
Precision tool kits & ESD workbench	2	9,500	19,000
Total			2,40,000

Suppliers: Fine Tools India (Jaipur), Sagar Electronics (Delhi), Techno Instruments (Jaipur). Quotations enclosed at Annexure IX. Delivery within 30 days of sanction; installation by the supplier at no extra cost.

Purchases, Utilities & Manpower

Annual purchases — Year 1

Item	Basis	Year 1 (₹)
Mobile & laptop spares, ICs, displays	Fast-moving stock, 45 days' cover	8,60,000
Television & appliance spares	Panels, boards, compressors	3,20,000
Accessories & retail stock	Chargers, cases, cables, batteries	2,60,000
Consumables	Solder, flux, ESD supplies, packaging	72,000
Total purchases	45% of Year-1 revenue	15,12,000

Manpower

Category	Nos.	Monthly (₹)	Annual (₹)
Senior technician	2	14,000	3,36,000
Junior technician	1	10,000	1,20,000
Counter / billing assistant	1	10,000	1,20,000
Helper & delivery	1	8,000	96,000
Total (excluding proprietor)	5	56,000	6,72,000

The proprietor draws from the capital account and is not on the salary roll. Power requirement is 5 kW sanctioned load; the expanded area adds about 2 kW.

Profitability Projections (5 Years)

Projected profit & loss account (₹ in lakh)

Particulars	Year 1	Year 2	Year 3	Year 4	Year 5
Service & repair income	24.00	28.32	32.57	36.80	41.22
Sale of spares & accessories	9.60	11.33	13.03	14.73	16.49
Total revenue	33.60	39.65	45.60	51.53	57.71
Cost of spares & materials (45%)	15.12	17.84	20.52	23.19	25.97
Gross profit	18.48	21.81	25.08	28.34	31.74
Salaries & wages	6.72	7.26	7.84	8.47	9.14
Rent	1.44	1.51	1.59	1.67	1.75
Power & fuel	0.72	0.78	0.83	0.89	0.95
Repairs & maintenance	0.30	0.33	0.36	0.39	0.42
Marketing & business promotion	0.36	0.40	0.44	0.48	0.52
Administrative & miscellaneous	0.60	0.66	0.72	0.78	0.84
Insurance	0.12	0.13	0.14	0.15	0.16
Total operating expenses	10.26	11.07	11.92	12.83	13.78
EBITDA	8.22	10.74	13.16	15.51	17.96
Depreciation (WDV, as per IT Act)	0.86	0.66	0.52	0.42	0.35
EBIT	7.36	10.08	12.64	15.09	17.61
Interest on term loan	0.78	0.64	0.48	0.31	0.11
Profit before tax	6.58	9.44	12.16	14.78	17.50
Income tax (as applicable)	0.30	0.62	0.95	1.35	1.80
Profit after tax	6.28	8.82	11.21	13.43	15.70

Revenue grows 18%, 15%, 13% and 12% over the five years, against 22% achieved by the unit in the last audited year. Capacity utilisation moves from 72% to 91%; the projections do not assume any increase in service rates.

Repayment Schedule & DSCR

Loan amount: ₹8,00,000
Rate of interest: 10.50% p.a. (reducing balance)
Tenure: 60 months
Moratorium: Nil
Equated monthly instalment: ₹17,195
Total interest over the tenure: ₹2,31,707

Year-wise repayment schedule (₹)

Year	Opening balance	Principal repaid	Interest	Total outgo	Closing balance
1	8,00,000	1,28,404	77,937	2,06,341	6,71,596
2	6,71,596	1,42,555	63,787	2,06,341	5,29,041
3	5,29,041	1,58,265	48,077	2,06,341	3,70,776
4	3,70,776	1,75,706	30,635	2,06,341	1,95,070
5	1,95,070	1,95,070	11,272	2,06,341	Nil
Total		8,00,000	2,31,707	10,31,705

Debt service coverage ratio (₹ in lakh)

Particulars	Year 1	Year 2	Year 3	Year 4	Year 5
Profit after tax	6.28	8.82	11.21	13.43	15.70
Add: depreciation	0.86	0.66	0.52	0.42	0.35
Add: interest on term loan	0.78	0.64	0.48	0.31	0.11
Cash available for debt service (A)	7.92	10.12	12.21	14.16	16.16
Principal repayment	1.28	1.43	1.58	1.76	1.95
Interest	0.78	0.64	0.48	0.31	0.11
Total debt service (B)	2.06	2.07	2.06	2.07	2.06
DSCR (A ÷ B)	3.84	4.89	5.93	6.84	7.84

Average DSCR over the tenure: 5.87. The minimum acceptable to banks is 1.25; the unit crosses that threshold even if Year-1 revenue falls 60% short of projection.

Balance Sheet & Cash Flow Projections

Projected balance sheet (₹ in lakh)

Particulars	Year 1	Year 2	Year 3	Year 4	Year 5
LIABILITIES
Capital account (net of drawings)	4.08	7.50	12.11	17.74	24.44
Term loan — long-term portion	5.29	3.71	1.95	—	—
Term loan — current maturity	1.43	1.58	1.76	1.95	—
Sundry creditors (30 days)	1.26	1.49	1.71	1.93	2.16
Other current liabilities & provisions	0.30	0.35	0.40	0.45	0.50
Total	12.36	14.63	17.93	22.07	27.10
ASSETS
Net fixed assets	4.14	3.48	2.96	2.54	2.19
Stock of spares (45 days)	1.86	2.20	2.53	2.86	3.20
Sundry debtors (10 days)	0.92	1.09	1.25	1.41	1.58
Cash & bank balance	5.44	7.86	11.19	15.26	20.13
Total	12.36	14.63	17.93	22.07	27.10

Cash flow statement — Year 1 (₹ in lakh)

Sources	Amount	Applications	Amount
Profit after tax	6.28	Capital expenditure	5.00
Depreciation	0.86	Increase in stock	1.86
Increase in creditors & provisions	1.56	Increase in debtors	0.92
Term loan drawn	8.00	Repayment of term loan	1.28
Promoter's capital introduced	2.00	Drawings	4.20
		Closing cash & bank	5.44
Total	18.70	Total	18.70

CMA Data & Working Capital Assessment

Working capital is assessed under the Tandon Committee Method II, the basis used by banks for limits up to ₹5 crore. The workings below are drawn from the Year-1 projections above.

Maximum permissible bank finance (₹ in lakh)

Particulars	Amount
Stock of spares	1.86
Sundry debtors	0.92
Cash & bank balance	5.44
Total current assets (TCA)	8.22
Sundry creditors	1.26
Other current liabilities & provisions	0.30
Current maturity of term loan	1.43
Other current liabilities (OCL)	2.99
Working capital gap (TCA − OCL)	5.23
25% of TCA — stipulated margin	2.06
Maximum permissible bank finance (Method II)	3.18

No cash-credit limit is sought in this proposal; the assessment is presented because bank officers ask for it. Were the limit of ₹3.18 lakh availed, the current ratio would stand at 1.33 — above the 1.25 stipulated by IBA.

CMA statements included in the full report

Form I — particulars of existing and proposed limits
Form II — operating statement (actuals and projections)
Form III — analysis of the balance sheet
Form IV — comparative statement of current assets and current liabilities
Form V — computation of maximum permissible bank finance
Form VI — fund flow statement
Ratio analysis and holding-period statement

Key Ratios, Break-Even & SWOT

Key financial indicators

Ratio	Year 1	Year 2	Year 3	Year 4	Year 5	Bank norm
Current ratio	2.75	3.26	3.87	4.51	9.36	≥ 1.25
Debt–equity ratio	1.65	0.71	0.31	0.11	Nil	≤ 3.00
DSCR	3.84	4.89	5.93	6.84	7.84	≥ 1.25
Net profit margin	18.7%	22.2%	24.6%	26.1%	27.2%	—
Interest coverage	9.4	15.8	26.3	48.7	160.1	≥ 2.00

Break-even analysis — Year 1 (₹ in lakh)

Particulars	Amount
Fixed costs (salaries, rent, admin, depreciation, interest)	10.88
Variable costs (materials, power, maintenance)	16.14
Contribution (revenue − variable costs)	17.46
P/V ratio	51.96%
Break-even sales	20.94
Break-even as % of Year-1 revenue	62.3%
Cash break-even as % of Year-1 revenue	57.4%

Strengths

Nine years of promoter experience in the same line of activity; the unit is already running and profitable.
Only board-level repair capability in a 3 km catchment of 12,000 households.
85% repeat customers — revenue is recurring rather than one-off.
Low fixed-cost base; the shop is rented at ₹12,000 a month with no owned-premises burden.

Weaknesses

Technical dependence on the proprietor for complex board-level work.
Informal book-keeping to date; a computerised billing and stock system is part of this project.
Brand recognition limited to the immediate locality.

Opportunities

Right to Repair framework improving access to genuine spares for independent repairers.
About 3,000 new households entering the catchment within 1 km.
Institutional tie-ups — schools, clinics and offices for annual maintenance contracts.

Threats

An authorised brand service centre opening within the catchment.
Import-duty-led increases in spare-parts prices.
Attrition of trained technicians to larger service chains.

Employment, Declarations & Annexures

Employment generation

Role	Existing	Proposed	New jobs
Proprietor (skilled)	1	1	—
Senior technician	1	2	+1
Junior technician	—	1	+1
Counter / billing assistant	—	1	+1
Helper & delivery	1	1	—
Total	3	6	+3

The project creates 3 additional direct jobs, all skilled or semi-skilled, in line with the employment objective of the MUDRA scheme.

Declaration by the applicant

The information given in this project report is true and correct to the best of my knowledge and belief.
No loan has been availed from any other bank or financial institution for the same purpose.
The loan will be utilised only for the purpose stated in this report.
Proper books of account will be maintained and produced for inspection by the bank whenever required.
I am aware that furnishing false information renders the sanction liable to be withdrawn.

Signature: _______________________
Name: Suresh Sharma, Proprietor
Place: Jaipur, Rajasthan
Date: _______________________

Annexures enclosed

I — Aadhaar card of the promoter
II — PAN card of the promoter
III — Passport-size photograph
IV — Address proof (electricity bill)
V — Udyam registration certificate
VI — GST registration certificate
VII — Bank statement for the last 12 months
VIII — CIBIL report
IX — Quotations for machinery and equipment (three per item)
X — Rent agreement for the shop premises
XI — Income-tax returns for the last two years
XII — Photographs of the existing premises

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