2023

PROJECT
REPORT

Used bike showroom

finline address
 Project at a glance

Name & Address of Unit

Used bike showroom

finline address ,123456

Activity : Used bike showroom

Email : sample@finline.in

Phone : 1234567891

Constitution : Proprietorship

Scheme : sme

Number of employment : 5

Total project cost : 10,00,000.00

Fixed Capital : 5,00,000.00

Working Capital : 5,00,000.00

Total Bank loan : 7,75,000.00

Promoter(s) contribution : 2,25,000.00

Term loan : 3,75,000.00 Interest : 11.00 %

Working capital loan : 4,00,000.00 Interest : 11.00 %

Name & address of promoter(s)

Name : finline sample project

Address : finline address

Phone : 1234567891

Designation : Founder

Category : na

E-mail : sample@finline.in
 Project Feasibility Ratio

Debt Service Coverage Ratio (Average) : 14.78

Current ratio (Average) : 8.51

Year 1 Year 2 Year 3 Year 4 Year 5

Current ratio 3.00 5.47 8.21 11.24 14.59

Quick ratio 1.80 4.15 6.76 9.64 12.83

Interest coverage ratio 33.14 19.51 23.56 29.10 37.09

Debt equity ratio 0.81 0.35 0.20 0.12 0.08

TOL/TNW 0.81 0.35 0.20 0.12 0.08

DSCR 22.53 11.10 12.18 13.38 14.69

Gross profit Sales Percentage % 79.82 % 61.85 % 61.85 % 61.85 % 61.85 %

Net profit Sales Percentage % 27.30 % 14.83 % 15.07 % 15.27 % 15.44 %

Return On Capital Employed 0.78 0.64 0.48 0.40 0.34

Net profit Sales % Quick ratio

Project Feasibility graph
Revenue v/s Expense

Expense Splitup
 Introduction

A used bike business makes profits by selling used bikes. But an extremely important part of this process is
the supply chain - buying used cars from previous owners at a price low enough that it can be marked up. To
market and operate your used bike business, you need to attract and work with buyers as well as sellers, and
think of both as customer groups. The India used two-wheeler market has displayed a strong growth over the
five year period from 2013-2018 on account of increasing income of households, immigration of working
individuals in search of work or education as well as greater availability of used two-wheelers in the country.
The used-two wheeler market in India has underscored a growth of 10% in terms of sales volume over the
period 2013-2018. Further, online-automobile portals became a medium through which used vehicles started
selling online. The market witnessed the entry of a few organized players which focused on product quality.
This encouraged working women and young individuals to look for used vehicles in good conditions. The
growth of online advertising, which has fuelled the rise of online classified platforms such as OLX, Quikr,
Gaadi.com, Carwale.com, and others have revolutionized the way in which pre-owned vehicles have been sold
in the country. There are other platforms that have emerged in the Indian used two-wheeler market which
enable buyers and sellers to engage and exchange products in a transparent manner.
 Market potential & Strategy

The market for used bike in India is expected to reach a market size of USD 75 billion by 2023, recording a
CAGR of 15.2% during the forecast period. The India used bike market has grown at a tremendous pace since
the beginning of the 20th century. The main reason for the same has been the emergence of organized
players in the market, as these players have taken care of the trust deficit and the plaguing India used
bike market since ages. Even a decade back, almost all sales in the India used bike market took place in the
unorganized sector. Sellers would palm off substandard products to buyers, which made a large number of
prefer to buy bikes in the circle of family, friends, and acquaintances. The used bike market in India accounts
for nearly 3.4 million vehicles per year. But only a minority of used bike sales originate from businesses to
consumers and are processed by organized dealers, around 400,000 unit per annum or about 13%. The used
bike business is very competitive, but there are opportunities for business people with a knowledge of
bike and a way with people. Making a profit in the used bike business requires skills that including the ability to
find quality bikes at great prices and the ability to fix bikes and make them more valuable. Focusing on the
skills you need to make a living in the used bike business can help you be more more successful.Though the
automobile industry is witnessing sluggish sales, the pre-owned car and bike business is growing at 15 per
cent and is likely to double its growth in the next four years. The average ownership of an automobile is 4
years. Therefore, a vehicle is usually sold 3 to 4 times in its lifetime. This creates a huge market for the used
bike dealer.
 Project Cost
Sl. no Item Amount Rs.

1 Building 1,00,000.00

2 Computers/ Printers /Photocopier/Electronic gadget 1,00,000.00

3 Racks & storage/Interior works 1,00,000.00

4 Electrification & Electricity backup 1,00,000.00

5 Air-conditioning 1,00,000.00

6 Working Capital 5,00,000.00

Total 10,00,000.00
 Working Capital Computation
Sl. no Item Amount Rs.

1 Consumables / stock in hand 4,80,769.23

2 Working expense. 19,230.77

3 Total working capital 5,00,000.00

4 Own Contribution 1,00,000.00

5 Working capital loan 4,00,000.00

 Annual Sales / Revenue
Sales is calculated from November 2023

Sl. no Item Rate Quantity Month Unit Total Rs.

1 Sales 51,477.50 X 10 X 5 Number 25,73,875.00

Total 25,73,875.00
 Total Yearly Expense
Expense is calculated from November 2023 .

Sl. no Item Amount Rs.

1 Salary 2,50,000.00

2 Repairs and maintenance charges 2,50,000.00

3 Electricity/Gas charges 2,50,000.00

4 Stationary expenses 2,50,000.00

5 Stock purchase 2,50,000.00

6 Transportation cost 2,50,000.00

7 Telephone/Postal &internet charge 2,50,000.00

8 Marketing & advertising cost 2,50,000.00

Total 20,00,000.00
 Application of Fund
Sl. no Item Subsidy % No. Rate Amount Rs.

1 Building 0.00 1 1,00,000.00 1,00,000.00

2 Computers/ Printers /Photocopier/Electronic gadget 0.00 1 1,00,000.00 1,00,000.00

3 Racks & storage/Interior works 0.00 1 1,00,000.00 1,00,000.00

4 Electrification & Electricity backup 0.00 1 1,00,000.00 1,00,000.00

5 Air-conditioning 0.00 1 1,00,000.00 1,00,000.00

Total Investment 5,00,000.00

Total Subsidy 0.00

Net Investment 5,00,000.00

 Means of Finance
Sl. no Item Amount

1 Term Loan 3,75,000.00

2 Working capital Loan 4,00,000.00

3 Total loan 7,75,000.00

4 Promoters contribution on term loan 1,25,000.00

5 Promoters contribution on working capital loan 1,00,000.00

 Profitability Statement
All figures are in lakhs
31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

Revenue from operation

Sales 25.73 67.95 74.74 82.21 90.44

Add :

Closing stock 4.80 5.28 5.81 6.39 7.03

Total 30.54 73.23 80.56 88.61 97.48

Less :

Opening stock 0 4.80 5.28 5.81 6.39

Stock purchase 2.50 6.60 7.26 7.98 8.78

Salary 2.50 6.60 7.26 7.98 8.78

Repairs and maintenance charges 2.50 6.60 7.26 7.98 8.78

Electricity/Gas charges 2.50 6.60 7.26 7.98 8.78

Total 10.00 31.20 34.32 37.76 41.53

Gross profit 20.54 42.03 46.23 50.85 55.94

Less :

Stationary expenses 2.50 6.60 7.26 7.98 8.78

Transportation cost 2.50 6.60 7.26 7.98 8.78

Telephone/Postal &internet charge 2.50 6.60 7.26 7.98 8.78

Marketing & advertising cost 2.50 6.60 7.26 7.98 8.78

Total 10.00 26.40 29.04 31.94 35.13

Profit before interest, tax and depreciation 10.54 15.63 17.19 18.91 20.80

Depreciation 0.19 0.43 0.37 0.33 0.28

Interest on TL 0.13 0.36 0.29 0.21 0.12

Interest on WC 0.18 0.44 0.44 0.44 0.44

Profit before tax 10.04 14.40 16.09 17.93 19.95

Income Tax 3.01 4.32 4.82 5.38 5.98

Profit after tax 7.02 10.08 11.26 12.55 13.97

 Cash flow statement
All figures are in lakhs
Cash Inflow Pre operative period 31/03/24 31/03/25 31/03/26 31/03/27 31/03/28
Capital 1.25 1.0 0 0 0 0
Subsidy 0 0 0 0 0 0
Termloan 3.75 0 0 0 0 0
Profit before tax with interest 0 10.35 15.20 16.82 18.58 20.52
Increase in WC loan 0 4.00 0 0 0 0
Depreciation 0 0.19 0.43 0.37 0.33 0.28
Increase in Current liability 0 0 0 0 0 0
Total Cash Inflow 5.00 15.54 15.63 17.19 18.91 20.80

Cash Outflow
Fixed Assets 5.00 0 0 0 0 0
Increase in Current asset 4.80 0.48 0.53 0.58 0.64
Interest on TL 0 0.13 0.36 0.29 0.21 0.12
Interest on WC 0 0.18 0.44 0.44 0.44 0.44
Income Tax 0 3.01 4.32 4.82 5.38 5.98
Decrease in Term loan 0.19 0.62 0.69 0.77 0.86
Drawing 0 0 0 0 0 0
Total Cash Outflow 5.00 8.32 6.22 6.77 7.38 8.04
Opening balance 0 0 7.21 16.62 27.04 38.57
Net Cashflow 0 7.21 9.41 10.41 11.53 12.75
Closing balance 0 7.21 16.62 27.04 38.57 51.33
 Balance sheet
All figures are in lakhs
Liability Pre operative period As of 31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

A. Share holders funds

Capital 1.25 2.25 2.25 2.25 2.25 2.25

Reserve & Surplus 0 7.02 17.11 28.37 40.93 54.90

B.Non current Liabilities

Termloan 3.75 3.55 2.94 2.25 1.48 0.63

C.Current Liabilities

Working capital loan 0 4.00 4.00 4.00 4.00 4.00

Account payable 0 0 0 0 0

Total Liability 5.00 16.83 26.30 36.87 48.66 61.78

Asset

A. Non current Assets

Fixed Assets 5.00 4.81 4.38 4.01 3.68 3.40

B. Current Assets

Inventory 0 4.80 5.28 5.81 6.39 7.03

Trade receivables 0 0 0 0 0 0

Cash and cash equivalence 0 7.21 16.62 27.04 38.57 51.33

Total Asset 5.00 16.83 26.30 36.87 48.66 61.78

 Repayment of Term loan
All figures are in lakhs
Year Month Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end

1 Dec 2023 1 3.75 0.047 0.034 0.082 3.70

1 Jan 2024 2 3.70 0.048 0.034 0.082 3.65

1 Feb 2024 3 3.65 0.048 0.034 0.082 3.60

1 Mar 2024 4 3.60 0.048 0.033 0.082 3.55

2 Apr 2024 5 3.55 0.049 0.033 0.082 3.50

2 May 2024 6 3.50 0.049 0.032 0.082 3.46

2 Jun 2024 7 3.46 0.050 0.032 0.082 3.41

2 Jul 2024 8 3.41 0.050 0.031 0.082 3.36

2 Aug 2024 9 3.36 0.051 0.031 0.082 3.30

2 Sep 2024 10 3.30 0.051 0.030 0.082 3.25

2 Oct 2024 11 3.25 0.052 0.030 0.082 3.20

2 Nov 2024 12 3.20 0.052 0.029 0.082 3.15

2 Dec 2024 13 3.15 0.053 0.029 0.082 3.10

2 Jan 2025 14 3.10 0.053 0.028 0.082 3.04

2 Feb 2025 15 3.04 0.054 0.028 0.082 2.99

2 Mar 2025 16 2.99 0.054 0.027 0.082 2.94

3 Apr 2025 17 2.94 0.055 0.027 0.082 2.88

3 May 2025 18 2.88 0.055 0.026 0.082 2.83

3 Jun 2025 19 2.83 0.056 0.026 0.082 2.77

3 Jul 2025 20 2.77 0.056 0.025 0.082 2.71

3 Aug 2025 21 2.71 0.057 0.025 0.082 2.66

3 Sep 2025 22 2.66 0.057 0.024 0.082 2.60

3 Oct 2025 23 2.60 0.058 0.024 0.082 2.54

3 Nov 2025 24 2.54 0.058 0.023 0.082 2.49

3 Dec 2025 25 2.49 0.059 0.023 0.082 2.43

3 Jan 2026 26 2.43 0.059 0.022 0.082 2.37

3 Feb 2026 27 2.37 0.060 0.022 0.082 2.31

3 Mar 2026 28 2.31 0.060 0.021 0.082 2.25

4 Apr 2026 29 2.25 0.061 0.021 0.082 2.19

4 May 2026 30 2.19 0.061 0.020 0.082 2.13

4 Jun 2026 31 2.13 0.062 0.020 0.082 2.06

4 Jul 2026 32 2.06 0.063 0.019 0.082 2.00

4 Aug 2026 33 2.00 0.063 0.018 0.082 1.94

4 Sep 2026 34 1.94 0.064 0.018 0.082 1.87

4 Oct 2026 35 1.87 0.064 0.017 0.082 1.81

4 Nov 2026 36 1.81 0.065 0.017 0.082 1.74

4 Dec 2026 37 1.74 0.065 0.016 0.082 1.68

Year Month Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end

4 Jan 2027 38 1.68 0.066 0.015 0.082 1.61

4 Feb 2027 39 1.61 0.067 0.015 0.082 1.55

4 Mar 2027 40 1.55 0.067 0.014 0.082 1.48

5 Apr 2027 41 1.48 0.068 0.014 0.082 1.41

5 May 2027 42 1.41 0.069 0.013 0.082 1.34

5 Jun 2027 43 1.34 0.069 0.012 0.082 1.27

5 Jul 2027 44 1.27 0.070 0.012 0.082 1.20

5 Aug 2027 45 1.20 0.070 0.011 0.082 1.13

5 Sep 2027 46 1.13 0.071 0.010 0.082 1.06

5 Oct 2027 47 1.06 0.072 0.0098 0.082 0.99

5 Nov 2027 48 0.99 0.072 0.0091 0.082 0.92

5 Dec 2027 49 0.92 0.073 0.0085 0.082 0.85

5 Jan 2028 50 0.85 0.074 0.0078 0.082 0.78

5 Feb 2028 51 0.78 0.074 0.0071 0.082 0.70

5 Mar 2028 52 0.70 0.075 0.0064 0.082 0.63

6 Apr 2028 53 0.63 0.076 0.0057 0.082 0.55

6 May 2028 54 0.55 0.076 0.0050 0.082 0.47

6 Jun 2028 55 0.47 0.077 0.0043 0.082 0.40

6 Jul 2028 56 0.40 0.078 0.0036 0.082 0.32

6 Aug 2028 57 0.32 0.079 0.0029 0.082 0.24

6 Sep 2028 58 0.24 0.079 0.0022 0.082 0.16

6 Oct 2028 59 0.16 0.080 0.0015 0.082 0.081

6 Nov 2028 60 0.081 0.081 0 0.082 0

 Debt Service Coverage Ratio
All figures are in lakhs
Particulars 31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

Receipts

a).Net Profit 7.02 10.08 11.26 12.55 13.97

b).Depreciation 0.19 0.43 0.37 0.33 0.28

c).Interest on termloan 0.13 0.36 0.29 0.21 0.12

Total 7.35 10.86 11.92 13.09 14.37

Repayments

a).Loan Principal 0.19 0.62 0.69 0.77 0.86

b).Interest on termloan 0.13 0.36 0.29 0.21 0.12

Total 0.33 0.98 0.98 0.98 0.98

DSCR 22.54 11.11 12.19 13.38 14.69

Average DSCR : 14.78

 Depreciation
All figures are in lakhs
Particulars Rate 31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

Building 5 1.0 0.98 0.93 0.88 0.84

Less Depreciation 0.021 0.049 0.047 0.044 0.042

Written down value 0.98 0.93 0.88 0.84 0.80

Computers/ Printers /Photocopier/Electronic gadget 15 1.0 0.94 0.80 0.68 0.58

Less Depreciation 0.063 0.14 0.12 0.10 0.086

Written down value 0.94 0.80 0.68 0.58 0.49

Racks & storage/Interior works 10 1.0 0.96 0.86 0.78 0.70

Less Depreciation 0.042 0.096 0.086 0.078 0.070

Written down value 0.96 0.86 0.78 0.70 0.63

Air-conditioning 15 1.0 0.94 0.80 0.68 0.58

Less Depreciation 0.063 0.14 0.12 0.10 0.086

Written down value 0.94 0.80 0.68 0.58 0.49

Total less depreciation 0.19 0.43 0.37 0.33 0.28

Total written down value 4.81 4.38 4.01 3.68 3.40

 Assumption
The entire projection is based on the assumption that the sales for 5 years will be

All figures are in lakhs

31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

30.55 73.24 80.56 88.62 97.48

Sales : 6177300

Also the total expense for the firm during the projection years will be as follows

31/03/24 31/03/25 31/03/26 31/03/27 31/03/28

20.00 52.80 58.08 63.89 70.28

• The depreciation is as follows

Particulars Value

Building 5%

Computers/ Printers /Photocopier/Electronic gadget 15%

Racks & storage/Interior works 10%

Air-conditioning 15%

• Cost of the land or building is based on the basis of current rate

• Cost of Machinery is based on direct purchase from the market on deepest study

• Value of raw materials & utility charges as per the current market conditions

• All other assumptions are calculated based on the basis of experience of the promoter and deep study

on the working of similar model

This report is created using www.finline.in . Finline have bears no financial responsibility on or behalf of any of
the authorized signatories
 Conclusion
The project as a whole describes the scope and viability of the Trading industry and mainly of the financial,
technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good
return on capital investment. When analyzing the social- economic impact, this project is able to generate an
employment of 5 and above. It will cater the demand of Trading and thus helps the other business entities to
increase the production and service which provide service and support to this industry. Thus more cyclic
employment and livelihood generation. So in all ways, we can conclude the project is technically and socially
viable and commercially sound too.

When we take a close look at the Debt Service Coverage Ratio (DSCR), the avg: DSCR is 14.78 : 1, which is at a
higher proposition and proposes a stable venture

The Profit and Loss shows a steady growth in profit throughout the year and the firm has a higher Current
Ratio (average) of 8.51, this shows the current assets and current liabilities are managed & balanced well.