PPROJECT PROFILE ON COMPUTER ASSEMBLING

Product Name Computer Assembling

Product Intel Core-2, 8 Gb RAM, 1000GB HDD, Monitor-15.6”

Specification
Can be changed as Per requirements

Production Capacity 600 pieces

(Per Annum)

Investment Value 38 Lacs

(In Rs Per Annum)

Month & Year of June-2020

Preparation

Prepared By Meenu Dhiman

Asstt. Director (IMT)

MSME- Development Institute

11-A, IDC , Kunjpura Road, Karnal

Haryana- 0184-2208110,105

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 Computer assembling
INTRODUCTION :
Today computers are used for various applications in day to day life. A Micro
Enterprise unit proposed activity Computer assembling & Sales. For this computer parts
will be Purchased from dealer and assembling in the unit. Assembled Computers will be
marketed through the distributors appointed by the entrepreneur. The distributor will
also inform the needs of the computer through the market Survey.

MARKET SCOPE:
Today computers are used in every field from schools to hospital. Although
branded computers are available in the market but mostly people prefer assembled
computers because of following reasons:
 Freedom to Choose Components:In Assembled PC you have the freedom to
choose the hardware components that includes CPU, RAM, Motherboard, Hard
Disk, Monitor, Mouse, Keyboard, SMPS etc. according to your needs, whereas in
branded computer the configuration is fixed or chosen by the company and you
have to deal with that only.

 Cost Effective & Cheaper:Branded PCs are more expensive than an

assembled computer. If we compare a branded computer with an assembled
computer with same configuration having same components then you will find
that the price of branded pc is much more than an assembled pc. This is
because of the brand name associated with that computer and also they provide
warranty on the entire computer.

 Flexibility:In Branded PC you cannot alter the configuration of you computer

during the warranty period i.e. change, remove or add any component as it can
lead to violation in the warranty but in Assembled PC there is no such restriction
and you are free to add, remove or upgrade any component according to your
needs or requirements.

 Room for Future Expansion:With an assembled computer you can choose your
components in such a way, so that there can be some room for expansion in the
future. For example you can get a latest high-end motherboard, so that you can
upgrade to a better processor and graphics card in the future.

 Warranty:In Branded PC, the company gives warranty on the entire computer as
whole i.e. 5 years on entire pc for all components whereas in assembled
computer the warranty is provided by the vendor on individual components which
is different for each component i.e. processor can have warranty of 2 years, hard
disk for 5 years and so on. This is not a major issue but branded computers
might have some edge on the warranty issue.

RAW MATERIALS:
Mother Board, ATX Cabinet, Packing Material Mouse, Key Board, Monitor,
Processor,

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Manufacturing process: Cabinet setting, Fix the SMPS (Switched Mode Power Supply),
Fix the Mother Board, Fix the Processor, Fix the Hard Disk, Fix the CD Writer
Installation of operating system & Soft Ware
Some Good Brands of Hardware Components when Assembling a PC
Here are some good brands or companies of various hardware components that can be
helpful in choosing components while assembling a PC.

Processor/CPU – Intel, AMD

Motherboard – ASUS, Gigabyte, MSI, ASRock, Intel

RAM – Corsair, Transcend, Kingston, AData, G.Skill

Hard Disk – Seagate, Western Digital (WD)

Optical Drive – Liteon, LG, Sony, Asus

Monitor/LCD – Samsung, LG

Graphics Card – Nvidia, AMD/ATI

SMPS – Corsair, Antec, Cooler Master, Seasonic

Keyboard & Mouse – Logitech, Microsoft

Cabinet – Depends on your preference or choice, but get a spacious cabinet that has
enough room for all the components and have proper airflow. For high quality cabinets
you can go for Antec and Cooler Master.

Speakers – Logitech, Altec Lansing, Creative

UPS – Luminous, APC, Microtek, Numeric

All the components are easily available in the market and a computer with all
components of good quality can be assembled and made available at reasonable price.

Production Targets: 50 computers per month

FINANCIAL ASPECTS:

A) Fixed capital:

a) Land Building required :

Rent (per month): Rs. 4000/-

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b) Machinery & Equipment:

Machine name Qty Rate Value

1 Screw Driver 4 250 1000
2 Multi meter 4 1,000 4000
3 Soldering iron 4 250 1000
4 Soldering station 4 6,000 24000
5 Other fitting items - 5,000 5000
Total 35000

c) Other fixed asset:

Erection and installation 20,000

Office furniture 20,000
Pre operative expnses 25,000
Total 65,000
Total fixed capital 100,000

Total fixed capital- Rs. 1,00,000/-

B) Working Capital:

d) Staff & Labor:

03 workers are required to perform all the operations:
Designation No Salary Total
System Engineer 2 30,000 60000
Distributor 2 15,000 30000
peon 1 6000 6000
Total 96000
Prerequisite @15% on total 0.15x96000= 14400
salary
Total 110400

e) Raw material (per month):

Particulars Rate
per
Qty piece Cost
Mother Board 50 3000 150000
ATX Cabinet 50 1500 75000
Mouse 50 500 25000

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 Hard disk 50 1000 50000
RAM 50 1000 50000
Micro Processor 50 7000 350000
CD/DVD RW 50 1000 50000
Key Board 50 1000 50000
Monitor 50 5000 250000
SMPS 50 1000 50000
Internal cables 50 500 25000
Packing material LS 25000 25,000
Total 1150000

f) Utilities(per month):

Power 3,000
Water 1000
Fuel for generator 1,000
Total 5,000

g) Contingent expenses:

Rent 5000
Postage and stationery 1000
Telephone / Telex/Fax charges 2000
Transportation 8,000
Miscellaneous expenditure 2,000
Total 18000

Total reccuring expenses: (d+e+f+g)

Staff and labour (d) 110400

Raw materials(e) 1150000
Utilities(f) 5,000
Contingent expenses(g) 18000
Total recurring expenses 1283400

Total working capital for 03 months:

= 3x recurring expenses per month
= 03 x 1283400
= Rs 3850200/-

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 C) Total capital investment

Machinery & equipment 35000

Working capital for 3 months 3850200
Total 3885200

FINANCIAL ANALYSIS:

Cost of Production:

12x RE per
Recurring expenses month 12x1283400= 15400800
Depreciation on machinery 10% on M/C cost 0.1x35000 3500
depreciation on fixed assetes
and furniture 15% on furniture 0.15x20000= 3000
12% on working 0.12x
Interest on total investment capital 3885200= 466224
Total 15873524 15873524

Turn over (per annum by sales):

Qty Rate per

Product (pieces) piece Value
Computer system 50 30000 1500000
Total 1500000
Total turnover per
month 18000000

Net Profit per year:

=Sales value - cost of production
=18000000-15873524
=2126476/-

Net profit Ratio:

Net profit per year x 100
= Turn over per annum

= 2126476*100/18000000

= 11.814%

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 Rate of return on investment:

Net profit per year x 100

= Total cost of production per annum

= 2126476*100/15873524
= 13.4%

Break even point analysis:

Rent 4000*12 48000

Depreciation (10% of M/C) 0.1x35000= 3500
Interest on capital investment 0.12x3885200= 466224
40% of wages of staff and
labour 0.4x 110400x12= 529920
40% of other contingent
expenses = 0.4x18000x12= 86400
Total say Z (z) 1134044

Break even point:

_____Z x 100______
= (Z+ Net profit per annum)

= 1134044*100____
1134044+2126476

= 34.78%

List of supplier:
• LOTUS Systems & Services
106A, 12 Osian Building, Nehru Place, New Delhi
(Landmark: Paras Cinema )
Mobile No.- 9212006259 / 9717838231

• Grania Computers
TA-169/B, FF, Tuglakabad Extension,
Near Nehru Place Road, Kalkaji, New Delhi, Delhi 110019
Phone no. 098111 80533

 Microchip Expert Solution Pvt. Ltd.

29/4A, Near Metro Gate No -3 Tilak Nagar
Ashok Nagar, Delhi - 110018, (Map)

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 Website: www.microchipexpert.com
Phone No.- 9716992246

 Computer laptop Zone

103-B Meghdoot Building, Nehru Place,
Near Meghdoot Building
Delhi - 110019
Website: www.smcinternational.in
Phone no.: 9811668821, 011-26293001