PROJECT REPORT

OF

SOFTWARE DEVELOPMENT SERVICES

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Software Development Services.

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: Siddhivinayak Building,

27/1/B, Gokhale Marg, Lucknow-226001
Delhi Office: Multi-Disciplinary Training
Centre, Gandhi Darshan Rajghat, New Delhi
110002
Email: [email protected]
Contact: +91 7526000333, 444, 555
 PROJECT AT GLANCE

1 Name of Proprietor/Director XXXXXXXX

2 Firm Name XXXXXXXX
3 Registered Address XXXXXXXX
4 Nature of Activity XXXXXXXX
5 Category of Applicant XXXXXXXX
6 Location of Unit XXXXXXXX
7 Cost of Project 23.84 Rs. In Lakhs
8 Means of Finance
i) Own Contribution 2.38 Rs. In Lakhs
ii) Term Loan 13.46 Rs. In Lakhs
iii) Working Capital 8.00 Rs. In Lakhs
9 Debt Service Coverage Ratio 3.47
10 Power Requirement 10 KW
11 Employment 10 Persons
12 Details of Cost of Project & Means of Finance

Cost of Project
Particulars Amount in Lacs
Land Owned/Leased
Building & Civil Work Owned/Leased
Capital Asset 9.45
Furniture & Fixture 2.00
Other Misc Assets 3.50
Working Capital Requirement 8.89
Total 23.84

Means of Finance
Particulars Amount in Lacs
Own Contribution 2.38
Term Loan 13.46
Working capital Loan 8.00
Total 23.84
 SOFTWARE DEVELOPMENT SERVICES

1. INTRODUCTION

Software Development Services means the design, development, maintenance,

implementation, support, testing, and documentation services and other services
as may be required to create, enhance, improve, modify, update, or upgrade
software applications.

Software itself is the set of instructions or programs that tell a computer what to
do. It is independent of hardware and makes computers programmable. There are
three basic types:

System software to provide core functions such as operating systems, disk

management, utilities, hardware management and other operational necessities.

Programming software to give programmers tools such as text editors,

compilers, linkers, debuggers and other tools to create code.
Application software (applications or apps) to help users perform tasks. Office
productivity suites, data management software, media players and security
programs are examples. Applications also refers to web and mobile applications
like those used to shop on Amazon.com, socialize with Facebook or post pictures
to Instagram.

2. SCOPE & IMPORTANCE

“Software has emerged as a key differentiator in many products — from cars to

washing machines to thermostats — with a growing Internet of Things connecting
them.”

A quick definition of software development is 'the activity concerned with

creating, establishing, implementing and designing computer programmes.
Computer developers create these programmes that help people do a task quicker
and more accurately. These efficiencies help increase productivity and free up
personnel time. To ensure that a programme or piece of software does that, a
developer runs checks and can make essential changes and tweaks. Software
development is valuable in many industries, as many companies are more reliant
on digital technology to help them operate. As a result, software developers often
create bespoke digital technology solutions.

The aim is for those solutions to help companies enjoy efficiencies as processes
become less manual and are instead more automated and reliable. Software
development also occurs to help people on an individual level too. Individuals
use software in their day-to-day lives through the use of apps. Software
developers create those apps to help answer user needs as closely as possible.
Software developers also enhance and improve old apps to eradicate bugs, while
continually looking for new app opportunities to fulfil a previously unseen gap in
the app market.

Software development has changed a lot in the last 10 years. Practically every
company is a software company today. And it’s predicted that the next 10 years
will have 10-times the change.

This means that the future of software development is actually happening now,
spurred on by organizational, economical, and political challenges. From self-
driving cars to fully robotic surgeries, the future of software in 2023 shows less
reliance on human labor and more on AI and computers. Less human labor on the
consumer side, that is, as software developers will be in high demand to ensure
the safety of these products.

3. SERVICE DESCRIPTION

Software development is primarily conducted by programmers, software

engineers and software developers. These roles interact and overlap, and the
dynamics between them vary greatly across development departments and
communities.

Services provided by a Software Development Service Company:

• Custom Application Development Services

We rely on our technological expertise and specialized industry experience to

develop any type of web, mobile, desktop, and hybrid app per your business
requirements.

• QA and Software Testing Services

Comprehensive quality assurance is built into our custom software service

model, but we can also provide on-demand QA and a suite of functional and
usability software tests upon request.

• App Maintenance Services

Our application maintenance and modernization services are designed to ensure

the scalability, performance, and sustainability of your entire software
infrastructure as your business grows.

• API Integration Services

We build and implement custom APIs for all breeds of applications, helping to
add functionality to your software systems and facilitate communication
between your apps and others.

• IT Security Services

Our thorough threat audits help us identify your software infrastructure’s most
pressing vulnerabilities, allowing us to integrate the encryptions, security
services and access protocols, you require.

• Data Backup and Recovery Services

Data Backup and Recovery have become some of the top priorities when it
comes to lockdown and social distancing due to the negative impact of Covid-
19. We implement robust data backup and recovery strategies for cloud-based,
on-premises and hybrid servers, designed to ensure the integrity of your data
and the continuity of your business.

4. PROJECT COMPONENTS

4.1 CAPITAL ASSET

1. Laptops and computers
2. Mobile phones with CUG plans
3. Printer
4. Office Equipment
5. Software
6. Furniture & décor

4.2 OTHER REQUIREMENTS-

• Website
• Business Cards
• Brochure or Catalogue for designs with budgets
PROJECTED PROFITABILITY STATEMENT (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Capacity Utilisation % 40% 45% 50% 55% 60%

SALES/ RECEIPTS
Gross Receipts 58.00 65.94 79.38 94.00 104.05

Total 58.00 65.94 79.38 94.00 104.05

COST OF SERVICE

Electricity Expenses 0.77 0.95 1.06 1.16 1.27

Depreciation 3.84 2.52 1.69 1.17 0.84
Salary to Staff 28.08 33.70 40.44 48.52 53.37
Website maintenance Charges 0.30 0.32 0.33 0.35 0.36
Annual maintenance charges 1.16 1.32 1.59 1.88 2.08
Internet Expense 2.00 2.40 2.88 3.46 4.15
Interest on Term Loan 1.32 1.16 0.84 0.51 0.18
Interest on working capital 0.88 0.88 0.88 0.88 0.88
Rent on Premises 3.60 3.78 3.97 4.17 4.38
Repair & Maintainance 2.32 2.64 3.97 4.70 5.20
General Administrative expenses 8.12 9.23 11.91 14.10 15.61
TOTAL 52.39 58.89 69.54 80.90 88.32

NET PROFIT 5.61 7.05 9.84 13.10 15.73

Taxation 0.19 0.33 0.73 1.40 2.09
PROFIT (After Tax) 5.42 6.72 9.11 11.70 13.64
NET PROFIT RATIO 9.34% 10.19% 11.48% 12.45% 13.10%
PROJECTED BALANCE SHEET (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Liabilities
Capital
Opening balance - 2.80 4.02 6.13 8.84
Add:- Own Capital 2.38
Add:- Profit/(Loss) 5.42 6.72 9.11 11.70 13.64
Less:- Drawings 5.00 5.50 7.00 9.00 10.00

Closing Balance 2.80 4.02 6.13 8.84 12.47

Term Loan 11.96 8.97 5.98 2.99 -
Working Capital Limit 8.00 8.00 8.00 8.00 8.00
Provisions & Other Liabilities 0.50 0.60 0.72 0.86 1.04
TOTAL : 23.26 21.59 20.83 20.69 21.51
Assets
Fixed Assets ( Gross) 13.63 13.63 13.63 13.63 13.63
Gross Dep. 3.84 6.36 8.06 9.23 10.07
Net Fixed Assets 9.79 7.27 5.57 4.40 3.56
Current Assets
Sundry Debtors 5.80 6.59 7.94 9.40 10.40
Cash and Bank 4.18 4.13 3.62 3.39 3.74
Loans & Advances & Other Current Liabilities 3.50 3.60 3.70 3.50 3.80
TOTAL : 23.26 21.59 20.83 20.69 21.51
- - - - -
PROJECTED CASH FLOW STATEMENT (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
SOURCES OF FUND
Own Margin 2.38
Net Profit 5.42 6.72 9.11 11.70 13.64
Depreciation & Exp. W/off 3.84 2.52 1.69 1.17 0.84
Increase in Cash Credit 8.00 - - - -
Increase In Term Loan 13.46 - - - -
Increase in Provisions & Oth labilities 0.50 0.10 0.12 0.14 0.17

-
TOTAL : 33.60 9.34 10.92 13.02 14.65
APPLICATION OF FUND
Increase in Fixed Assets 13.63
Increase in Debtors 5.80 0.79 1.34 1.46 1.00
Repayment of Term Loan 1.50 2.99 2.99 2.99 2.99
Increase in Loans & Advances 3.50 0.10 0.10 - 0.20 0.30
Drawings 5.00 5.50 7.00 9.00 10.00
Taxation - - - - -
TOTAL : 29.43 9.38 11.43 13.25 14.29

Opening Cash & Bank Balance - 4.18 4.13 3.62 3.39

Add : Surplus 4.18 -0.05 -0.51 -0.23 0.35
Closing Cash & Bank Balance 4.18 4.13 3.62 3.39 3.74
CALCULATION OF D.S.C.R

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

CASH ACCRUALS 9.26 9.24 10.80 12.88 14.48

Interest on Term Loan 1.32 1.16 0.84 0.51 0.18
Total 10.59 10.40 11.64 13.38 14.65

REPAYMENT
Instalment of Term Loan 1.50 2.99 2.99 2.99 2.99

Interest on Term Loan 1.32 1.16 0.84 0.51 0.18

Total 2.82 4.15 3.83 3.50 3.17

DEBT SERVICE COVERAGE RATIO 3.76 2.50 3.04 3.83 4.63

AVERAGE D.S.C.R. 3.47
 REPAYMENT SCHEDULE OF TERM LOAN
Interest 11.00%
Closing
Year Particulars Amount Addition Total Interest Repayment Balance
1st Opening Balance
1st month - 13.46 13.46 - - 13.46
2nd month 13.46 - 13.46 0.12 - 13.46
3rd month 13.46 - 13.46 0.12 - 13.46
4th month 13.46 - 13.46 0.12 - 13.46
5th month 13.46 - 13.46 0.12 - 13.46
6th month 13.46 - 13.46 0.12 - 13.46
7th month 13.46 - 13.46 0.12 0.25 13.21
8th month 13.21 - 13.21 0.12 0.25 12.96
9th month 12.96 - 12.96 0.12 0.25 12.71
10th month 12.71 - 12.71 0.12 0.25 12.46
11th month 12.46 - 12.46 0.11 0.25 12.21
12th month 12.21 - 12.21 0.11 0.25 11.96
1.32 1.50
2nd Opening Balance
1st month 11.96 - 11.96 0.11 0.25 11.71
2nd month 11.71 - 11.71 0.11 0.25 11.46
3rd month 11.46 - 11.46 0.11 0.25 11.21
4th month 11.21 - 11.21 0.10 0.25 10.96
5th month 10.96 - 10.96 0.10 0.25 10.71
6th month 10.71 - 10.71 0.10 0.25 10.47
7th month 10.47 - 10.47 0.10 0.25 10.22
8th month 10.22 - 10.22 0.09 0.25 9.97
9th month 9.97 - 9.97 0.09 0.25 9.72
10th month 9.72 - 9.72 0.09 0.25 9.47
11th month 9.47 - 9.47 0.09 0.25 9.22
12th month 9.22 - 9.22 0.08 0.25 8.97
1.16 2.99
3rd Opening Balance
1st month 8.97 - 8.97 0.08 0.25 8.72
2nd month 8.72 - 8.72 0.08 0.25 8.47
3rd month 8.47 - 8.47 0.08 0.25 8.22
4th month 8.22 - 8.22 0.08 0.25 7.97
5th month 7.97 - 7.97 0.07 0.25 7.72
6th month 7.72 - 7.72 0.07 0.25 7.47
7th month 7.47 - 7.47 0.07 0.25 7.23
8th month 7.23 - 7.23 0.07 0.25 6.98
9th month 6.98 - 6.98 0.06 0.25 6.73
10th month 6.73 - 6.73 0.06 0.25 6.48
11th month 6.48 - 6.48 0.06 0.25 6.23
12th month 6.23 - 6.23 0.06 0.25 5.98
0.84 2.99
4th Opening Balance
 1st month 5.98 - 5.98 0.05 0.25 5.73
2nd month 5.73 - 5.73 0.05 0.25 5.48
3rd month 5.48 - 5.48 0.05 0.25 5.23
4th month 5.23 - 5.23 0.05 0.25 4.98
5th month 4.98 - 4.98 0.05 0.25 4.73
6th month 4.73 - 4.73 0.04 0.25 4.48
7th month 4.48 - 4.48 0.04 0.25 4.24
8th month 4.24 - 4.24 0.04 0.25 3.99
9th month 3.99 - 3.99 0.04 0.25 3.74
10th month 3.74 - 3.74 0.03 0.25 3.49
11th month 3.49 - 3.49 0.03 0.25 3.24
12th month 3.24 - 3.24 0.03 0.25 2.99
0.51 2.99
5th Opening Balance
1st month 2.99 - 2.99 0.03 0.25 2.74
2nd month 2.74 - 2.74 0.03 0.25 2.49
3rd month 2.49 - 2.49 0.02 0.25 2.24
4th month 2.24 - 2.24 0.02 0.25 1.99
5th month 1.99 - 1.99 0.02 0.25 1.74
6th month 1.74 - 1.74 0.02 0.25 1.49
7th month 1.49 - 1.49 0.01 0.25 1.25
8th month 1.25 - 1.25 0.01 0.25 1.00
9th month 1.00 - 1.00 0.01 0.25 0.75
10th month 0.75 - 0.75 0.01 0.25 0.50
11th month 0.50 - 0.50 0.00 0.25 0.25
12th month 0.25 - 0.25 0.00 0.25 -
0.18 2.99
DOOR TO DOOR 60 MONTHS
MORATORIUM PERIOD 6 MONTHS
REPAYMENT PERIOD 54 MONTHS
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN
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considering specific requirement of the project, capacity and type of plant and
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