PPR ON PRESSURE COOKERAPRODUCT PROJECT REPORT ONROYAL PRESSURE COOKER
Prepared By : BHENSDADIA BHAVIKA D..
Roll No. : 07
Seat No. :
Class : BBA SEM-5
Academic year:2014-2015
College:Matushri virbaima Mahila College of Commerce, Management & It
Guided by:Prof. Dharti NathwaniProf. Kalpesh Radiya
Submitted To:Saurashtra University
1. INTRODUCTION TO SMALL SCALE INDUSTRY
The small scale in India covers a wide spectrum of Industries categorized under small, tiny and cottage segment ranging from small artisans handicraft units to modern production units with significant investment. This sector has acquired a prominent place in the country as it not only acts as a nursery for the development of entrepreneurial talent but also produce a wide range of products.In the Indian context, the small scale industry has been receiving due attention and importance from the policy makers owing to its special characteristics, namely. Low level of investment required. High potential for creation employment opportunity. Least location constraints. There by contribution to a balanced regional development and high of local resources.ROYAL PRESSURE COOKER INDUSTRY will small scale industry. Investment of royal pressure cooker industry is 1,00,00,000.ROYAL PRESSURE COOKER INDUSTRY will produce pressure cooker. Pressure cooker will have feature like Stylish, Hard Anodized, Time & Energy Efficient, Can be used on Gas Stove as well as Induction Cook top.
2. INTRODUCTION TO PRODUCT PROJECT REPORT
(1)
(2)
3. PROJECT AT A GLANCEName of the UnitRoyal partners firm
Tag line Always tasty & fresh food
Promoters Name BHENSDADIA BHAVIKA D..
Communication address ROYAL pressure cooker industrySurvey no. 196, Plot no.1&2,Vill.: Veraval (shaper)Dist. : Rajkot 360024
Registration office AddressROYAL pressure cooker industrySurvey no. 196, Plot no.1&2,Vill.: Veraval (shaper)Dist. : Rajkot 360024.
Telephone No. 0281-314311
Fax No. 75-14311
Form of OrganizationPartnership Firm
Size of the unit Small Scale Unit
Brand NameROYAL
Usage of the productMaking food
SSI Registration No.Applied For
Number of employee 30
Investment 1,00,00,000
Day off Wednesday
Sources of finances60 % Ownership40 % Borrowed
Investment in working capital41,79,000
Investment in fixed capital58,21,000
Relation with BankState bank of India
LOGO of Company
4. PROMOTERS BACKGROUND
Name
Bhensdadia Bhavika d.
Age
26
Address
Astha Residency,3G+ Apartment,Sukanvila 201,Rajkot-360004
Education/Qualification
MBA
Experience
2year
Nature of Responsibility
Managing marketing & finance
Contribution in the unit
60%
5. JUSTIFICATION OF LOCATION
ROYAL PRESSURE COOKER strategically located at SHAPER (VERAVAL) industrial estate. Location factors are crucial for the wealth maximization of the firm ; therefore it is inevitable for every industrialist to give full consideration to the suitable location of the enterprise . An entrepreneur must choose an ideal location to have better performance .Following are the factors to select shaper as the plant location
1.Availability of Raw-materials :-Raw-material plays vital role to achieve quality improvement and cost reduction in production . Shaper is the best to get raw-material easily because it is attached with national highway.2.Availability of power and water:- In modern era industry could not work without power. Adequate electricity and regular flow of electricity allows greater freedom of choice for location . Shaper(veraval) has continuous flow of electricity so, shaper ( veraval ) is best possible location as out of the city area .The rate of electricity is lower in shaper (veraval) because its known as industrial zone.Water supply is also necessary for continuous production process. 3.Nearness to markets :-Quickness in marketing action can be ensured by the being close to the market, late deliveries can be avoided when plant is located near the market . Industry have ready market for selling of product.4.Availability of labor :- Worker or labor are the most imported person in the industry. If labor gets easily then we can control or reduce the cost of production .Labors get at very cheaper rate because of industrial zone.
RAJKOT
N/H -B
SHAPER(VERAVAL)ROYAL PRESSURE COOKER
LOCATION OF UNIT : ROYAL pressure cooker Survey no. 196, Plot no.1&2, Vill.: Veraval (shaper) Dist. : Rajkot 360024.
6. ORGANISATION STRUCTURE
PROMOTOR
WORKERCLERKSALES MANACCOUNTANTEMPLOYEESSUPERVISIORMARKETING MANAGERFINANCE MANAGERH R MANAGERPRODUCTION MANAGER
7. VISION& MISSION OF THE COMPANY
VISION:- Vision of the ROYAL PRESSURE COOKER INDUSTRY will maximum customer satisfaction by providing qualitative and good product to customer. Job satisfaction of employee will also short goal of the industry.
MISION:-
Mission of ROYAL PRESSURE COOKER INDUSTRY will expand market as well as market share of industry. industry want to convert small scale industry in medium scale industry with the customer satisfaction. industry want to build strong image in the market.
8. BASIS AND PRESUMPTION
The proposed production of 36,000 per annum of gas lighter more than 300 working days in a year.
ShiftSingle shift
Working hours8:30Am to 8:00PmBreak 12:30Pm to 2:00Pm
The unit requires 2 to 3 year to achieve full capacity utilization the first year, company utilized 75% capacity.
The wages proposed in the project are as per privileged wage practice in the area.
Land value and construction cost has been taken on an average basis science it varies from place to place.
The cost of machinery & equipment has been proposed after consulting the machinery supplier nearly all the machines are available locally.
9. IMPLEMENTATION SCHEDULE
The major activities in the implementation of the project have been listed and the average time for implementation is estimated at 8-9 months. No.ParticularsTime Period
1.Preparation of Project Report1 Month
2.Acquisition of Land1 Month
3.SSI Registration1 Week
4.Approval of loan20 Days
5.Construction of Building1 Months
6.Acquisition of Machinery1 Month
7.Installation of Machinery 15 Days
8.Arrangement of Power1 Month
9.Appointment of Staff &Labour15 Days
1. PLANT LAYOUT
According to M.C.Muste :- A good layout is one which always materials regularly and directly for processing ,this reduces transport ,handling, detail and other costs down per unit, space requirements are minimize and reduced idea machine and idle man fine.A technique of locating different machines and plant requires within the factory so that the greatest possible output of high quality at the lowest possible total cost be available. Proper plant layout is one of keys of success in factory management. It signifies arrangement of machines work area transport shorting of materials and processing to different parts.ROYAL PRESSURE COOKER INDUSTRY will have S type plant layout which is reduce the unnecessary motion of employees. Industry arrange their store room near to production plan so Industry eliminate damage of raw-materials or finished product. Industry also arranged his machinery in that way which reduce movement of raw-material.
2. RAW MATERIAL
The raw materials are the most important component of the production process. When the raw materials are collected then and only then production is possible. If the raw materials are available in the cheapest way it is the most important advantage for the firm. The raw materials can be compared to water, air and food for human beings which are very important so as the raw materials for the firm.Authors believe, The raw materials are like the parts of human body without which the person cannot perform his activities. Raw materials are very important requirements of every industry & mainly for manufacturing unit. The production of any product is not possible without raw materials. Raw materials are regarded as assets and are given or sold at higher price.ROYAL PRESSURE COOKER INDUSTRY also consider the raw materials as the key factor in production unit. The main raw material used in Pressure cooker is: aluminum circle,wishel, gas kit, Bakelitehandle, balkPatti. ROYAL PRESSURE COOKER INDUSTRY purchasing the raw material from Jamnagar, veraval, vyara.
3. MACHINERY AND EQUIPMENT
Like raw materials machinery is also available easily. Some of the mare acquired from local market only & some are acquired from Ahmadabad city.
Sr. No.Name of MachineryName of SuppliersUnitsRs. Per UnitAmount
1.Cutting MachineshiventerpriseRajkot 1.4,00,0004,00,000
2.Stuffing Machineclassic machinery Ahmadabad 2. 2,00,0004,00,000
3.Sewing MachineSuner machineryRajkot
3.1,73,0001,73,000
4.SUPPLIERS OF RAW MATERIAL & MACHINARY
Raw material will be the basic need of all types of organization of all medium and large scale industry. Without raw materials production process will impossible. Raw material is life blood of production department. A) RAW MATERIAL1)Aluminum Circle: BIC company2)Wishel : DR. BACK company3)Gas Kit : Dell korn company4)Bakelite Handle : local market5)Balk Patti : graver company
B) MACHINARY 1)Cutting Machine : Shiv Wiring industry Ahmadabad
2)Stuffing Machine : Parth limited Ahmadabad
3)Sewing Machine : Tinytech pvt. ltd. Surat
5. FLOW CHART OF PRODUCTION PROCESS
6. PRODUCTION PROCESS
The assembling process & manufacturing process of handle is not as critical as other. It requires some amount of technical knowledge because the quality production.Manufacturing process involves following few operation; Aluminum circle or required size will press in deep drawing press with the help of suitable die Edge of the cooker is out on spinning machine. Cooker will than cleaned buffed on buffing machine on outer surface and sand blasting will done in the inner surface with help of spray pump. Primer coating will do into the outer surface and dried. Teflon and few pigment will mixed in require proportions will made and coating will done in the outer surface. Cook ware thus produced will then take off and necessary fixing or handles etc is made on it and then packed.
7. PRODUCTION CAPACITY AND QUALITY CONTROLProduction Capacity50%
No. of Working Days in a month26 days
No. of Working Days in a Year312 days
No. of Shifts per day1
No. of Working hours per shift8
Production Capacity per year36,000
8. POLLUTION CONTROL AND ENERGY CONSERVATION
POLLUCTION CONTROL: The entrepreneur is advice to contact concerned state pollution control board for detailed guidance in the matter. However the water in this industry is generated during cleaning, washing, pre-treatment blanching of raw material. It is advisable to test the water discharge as per specification laid down by such treatment has been made in the profit. Royal pressure cooker not any high conical and raw materials which spread pollution. They follow government rules of pollution high walls in production department to reduce the noise pollution.ENERGY CONSUMPTION: Although the energy requirement, its small yet some important point for conservation of energy are given below.1) In electronically installation appropriate electric machinery should be & properly installed.2) There should be no folt in machinery.
9. QULITY CONTROL
Quality is near an accident; it is always the result of high intention, sincere effort intelligent direction and skillful execution.Above all, quality means setting the highest standards for their selves.In industrial context quality is defined in much more functional fashion thus we can say that quality means, Fitness for use whether for a product or service. It is also considered as the sum total of the attributes or properties that describe the product. Today the existence of any manufacturing unit depends on the quality of product or services it manufactures or supplies. The image or goodwill of any unit is closely related to the quality of product made or supplied by that unit; In the ROYAL PRESSURE COOKERS Industry are too much conscious about its product. Industry will have latest equipment for the checking of raw-materials and finished product. So that Industry can maintain quality of their product and build image in the market. Industry will first check finishing of cooker, then test vishals test and at last pressure.
1.MARKET POTENTIAL
The market potential for Pressure Cooker is huge. While there are a vast no. of people who prefer to buy the Pressure Cooker Thus, initially we will try to exploit this segment of market. We would also like to draw attention People which use different type of pressure Cooker. All public is fond of Pressure cooker especially in India. they used to Cooking in lunch or dinner. In Market our product will be available easily. We are producing and supplying the product as per the demand.
2. MARKET SEGMENTATION
According to PHILIP KOTLER :- Market segmentation is the sub dividing of a market in to homogeneous sub sets of customers, where any sub sub-set may conceivably by selected as a market target ton be achieved with distinct marketing mix. The concept of market segmentation is based on the assumption that markets are not homogeneous but are heterogeneous. Market segmentation reflects reality in marketing situation. Market segmentation ensures higher customer satisfaction and improves effectiveness of the marketing programmed. Market segmentation is a customers oriented philosophy.CRITERIA FOR MARKET SEGMENTATION:-1. Geographic2. Demographic3. Psychographic4. Socio economic5. Marketing conditionROYAL PRESSURE COOKER INDUSTRY segment his market on the basis of geographic basis. Industry have local market. Industry has consumer users.
3. PROMOTIONAL EFFORTS
This is the 4th & last topic of marketing mix. According to out study promotion is a communication activity whole main object is to move forward or push forward a product, service idea in a channel of distribution. The promotional activity always attempts to afford knowledge, attitude, performance and behavior.
You have best product with fair price people will not buy it they have no many idea regarding our product. So,it is very important to awards the people from the existence of product, it feature, uses, benefit, etc. this aspect help in awaking stimulating consumer demand for the product. Not only that but it also helps in capturing & maintaining demand for product.
In modern marketing it is more tamp to attract the costmer by various promotional tools gather than good product. Every company directly or indirectly plays, the role of communicate and promoters.We are also going for sample testing.
4. PRICING POLICY
Pricing decision play a vital role in the development of any industries because pricing policy is the only factor in marketing mix of any firm which produces the revenue. The product for which the firm deals in the main material or we can say product acts as the heart of human body in the field. The product is manufactured in a proper & exact manner but if the sales department does work for it then the efforts are useless.There is various method of determining price of a product. Industry are as under.1. Cost plus pricing method2. Marginal pricing method3. Going rate pricing methodROYAL PRESSURE COOKER INDUSTRY will has adopted COST PLUS PRICING POLICY these types of prices cover the full cost occurred and company adds some percentage of margins .
5. DISTRIBUTION CHANNEL
According to WILLIAM J.STANTON:- A channel of distribution for a product is the route taken by the title to the goods as Industry move from the producer to the ultimate customers or industrial users. Distribution channel may be defined the set of marketing institution participating in the marketing activities involve in the movement or the flow of goods or distribution indicate rout pathways through which goods and services flow from producer to customer . Channel of distribution includes manufacturer , customer as well as intermediaries . ROYAL PRESSURE COOKER INDUSTRY is ignore long distribution channel. Distribution channel of Royal pressure cooker industry is as follows :
PRODUCER
RETAILERS
CUSTOMER
6. COMPETITORS
Without competitor you can never winCompetitor is one of the important partners of the companys success without competition one can never know about his limitations but it is also the biggest hardly in success of the company.ROYAL PRESSURE COOKER INDUSTRY also her some competitors but because of good performance of them Industry are able enough to face and compete with then
Competitors of ROYAL PRESSURE COOKER INDUSTRY Prestige pressure cooker Vikaspressure cooker Hawkins pressure cooker Kumar pressure cooker Surajpressure cooker
1. TOTAL FIXED ASSETS
A) Land & building
Land 25,00,000
Land development & fencing 1,00,000
Factory Building 5,00,000
Office building 3,00,000
Storage house 3,00,000
Bore well50,000
Water tank 40,000
Main gate 50,000
Watchmans Cabin50,000
Lavatory & bathroom50,000
Total 39,40,000
B) Plant & machinery
Sr No. Particular Quantity Rate per machine Value
1.Cutting Machine14,00,0004,00,000
2.Stuffing Machine22,00,0004,00,000
3.Sewing Machine11,73,0001,73,000
Total47,73,0009,73,000
C) Preliminary expenses
Sr. No.Particular Rs.
1. 1.Consultancy fees 20,000
2. 2.Project report preparation fees 30,000
3. 3.Legal expenses of company formation30,000
Total 80,000
D) Furniture
Sr No.Name of the itemQuantityRate per unitAmount
1.Ordinary table86,00048,000
2.Computer table45,00020,000
3.Chairs 12050060,000
4.Sofa seta 430,0001,20,000
5.Fans261,50039,000
6.Light 3250016,000
7.Door &windows
1020 6,000 4,00060,000 80,000
8.C.C.T.V. camera 75,00035,000
9.Air conditioners 435,0001,40,000
10.Refrigerators 330,00090,000
11..Computers430,0001,20,000
TOTAL2421,53,5008,28,000
TOTAL FIXED ASSETS
Particular Rs.
Land & building 39,40,000
Plant & machinery 9,73,000
Preliminary expenses 80,000
Furniture 8,28,000
Total 58,21,000
2. TOTAL WORKING CAPITAL
A) RAW MATERIAL (MONTHLY)
Sr No. Particular Quantity Kg. Rate per Kg. Amount Rs.
1. 1.Aluminum circle1,5001001,50,000
2. 2.Wishel2,2501002,25,000
3. 3.Gas kit3,0001003,00,000
4.Bakelite handle3,0001003,00,000
5.Balk Patti3,0001003,00,000
TOTAL12,75050012,75,000
B) Salary and wages
DesignationNo. of employeeSalary per month Total amt. monthly
General manager 114,50014,500
Factory manager 112,50012,500
Supervisor 110,00010,000
Clark-cum cashier110,00010,000
Foreman 23,0006,000
Computer operator16,0006,000
Salesman14,0004,000
Store keeper 13,0003,000
Peon 12,0002,000
TOTAL1065,00068,000
C) Utility (production facilities)
Particular Monthly amt.
Power 10,000
Fuel4,000
Water 5,000
Oil and Grease1,000
TOTAL20,000
C) Other expenses
Particular monthly
Postage & stationary 3,000
Telephone charges 4,000
Transport charges 6,000
Advertisement expenses5,000
Insurance 2,000
Repair & maintenance 5,000
Selling expenses 4,000
Other miscellaneous expenses 1,000
TOTAL30,000
TOTAL WORKING CAPITAL
Sr No.Particular Amount
A.Raw material 12,75,000
B.Salary and wages68,000
C.Utility 20,000
D.Other expenses 30,000
Working capital *3month 13,93,000*3
Total working capital 41,79,000
(3) TOTAL INVESTMENTS
Sr No.Particular Amount
1.Total Fixed Assets58,21,000
2.Total Working Capital41,79,000
Total Investments1,00,00,000
(4) SOURCES OF CAPITAL
Total investment 1,00,00,000
Owned capital Borrowed capital (60%)(40%) 60,00,000 40,00,000
(5) LOAN REPAYMENT SCHEDUALE
Year Opening balance Interest12% Closing
1. 40,00,0006,00,00036,00,000
2. 36,00,0005,40,00032,00,000
3. 32,00,0004,80,00028,00,000
4. 28,00,0004,20,00024,00,000
5. 24,00,0003,60,00020,00,000
6. 20,00,0003,00,00016,00,000
7. 16,00,0002,40,00012,00,000
8. 12,00,0001,80,0008,00,000
9. 8,00,0001,20,0004,00,000
10. 4,00,00060,000-
(6) DEPRICIATION FIXED ASSETS
(1) YEAR
Name of the assetsOpening balance Depreciation Closing balance
Land & building (10%)39,40,0003,94,00035,46,000
Plant & machinery (15%)9,73,0001,45,9508,27,050
Furniture (10%)7,08,00070,8006,37,200
Computer (60%)1,20,00072,00048,000
(2) YEAR
Name of the assetsOpening balance Depreciation Closing balance
Land & building (10%)35,46,0003,54,60031,91,400
Plant & machinery (15%)8,27,0501,24,0577,02,993
Furniture (10%)6,37,20063,7205,73,480
Computer (60%)48,00028,80019,200
(3) YEAR
Name of the assetsOpening balance Depreciation Closing balance
Land & building (10%)31,91,4003,19,14028,72,260
Plant & machinery (15%)7,02,9931,05,4495,97,545
Furniture (10%)5,73,48057,3485,16,132
Computer (60%)19,20011,5207,680
(7) ESTIMATED PRODUCTION AND SALES
(A) Estimation of production
Sr No.Production capacityUnit of production
1. 1.50%18,000
2. 2.75%27,000
3. 3.100%36,000
(B) Estimated sales
yearOpening stock (unit) Production (unit)Sales (unit)Closing stock(unit)
1.-18,00016,2001,800
2.1,80027,00026,1002,700
3.2,70036,00035,1003,600
(8) STOCK OF RAW MATERIAL
Particular Year-1Year-2Year-3
Opening stock (unit)
01,8002,700
+ purchases (unit)
19,80027,90036,900
_ Consumption
18,00027,00036,000
Closing stock in Rs.1,8002,7003,600
(9) TOTAL FIXED EXPENSES
Particular Amount
Salary & wages (60%)4,89,600
Utilities (50%) 1,20,000
Other expenses (70%)2,52,000
Total fixed expenses 8,61,600
Fixed cost per unit = Total Fixed Cost At 100% Total production at 100% =8,61,600 36,000 = 23.93
(10) TOTAL VARIABLE EXPENSES
Particular year
Raw material36,00,000
Salary & wages (40%)6,52,800
Utility (50%)2,40,000
Other expenses (30%)2,16,000
Total 47,08,800
Variable cost per unit = Total Variable Expense Total production at 100%
= 47,08,800 36,000 = 130.8
(11) TOTAL COST
Total cost = total fixed expenses + total variable expenses = 8,61,600 +47,08,800 =55,70,400
Total cost per unit = Total Cost Total production at 100%
= 55,70,400 36,000 = 154.733
(12) BREAK EVEN POINT IN UNIT
Break Even Point In Unit = Total fixed expenses Selling price variable Cost
= 8, 61,600 500130
= 2,328
(13) BREAK EVEN POINT IN RS.
Break Even Point in Rs. = BEP in Rs.* selling price per unit
= 2,328*500
= 11,64,000 RS.
TABLE SHOWING FIGURES OF SALES
year Prod. Capacity sales(unit) selling price per unit Rs.total sales Rs.
150%16,20050081,00,000
275%26,1005001,30,50,000
3100%35,1005001,75,50,000
TABLE SHOWING FIXED EXPENSES
particular year-1year-2year-3
Salary & wages (60%)4,89,6004,89,6004,89,600
Utilities (50%)
1,20,0001,20,0001,20,000
Other exp. (70%)2,52,0002,52,0002,52,000
total 8,61,6008,61,6008,61,600
TABLE SHOWING VARIABLE EXPENSES
Particular year-1year-2year-3
Raw material (100%)18,00,00027,00,00036,00,000
Salary & wages (40%)3,26,0004,89,0006,52,800
Utility (50%)1,20,0001,80,0002,40,000
Other expenses (30%)1,08,0001,62,0002,16,000
Total 23,54,40035,31,60047,08,800
(14) TRADING ACCOUNT
(1) YEAR
Particular Rs.Particular Rs.
To opening stock Raw material 0Finish goods 0
To purchase of materialTo salary & wagesTo utilities
Gross Profit
_
19,80,0003,26,0001,20,000
67,53,600
91,80,000By sales Cash-40% 32,40,000 Credit-60% 48,60,000
By closing stockRaw material Finish goods
81,00,000
1,80,0009,00,000
91,80,000
(15) PROFIT AND LOSS ACCOUNT
(1) YEAR
Particular Rs.Particular Rs.
To salary & wagesTo utilities To other expenses Fixed exp. 2,52,000 Variable exp.1,08,000
To depreciation Land & building Plant & machinery Furniture Computer
To interest on bank loanTo interest on capital (6%)To preliminary expenses
To provision for taxes
NET PROFIT
4,89,6001,20,000
3,60,000
3,94,0001,45,95070,80072,000
6,00,0003,60,000
80,000
12,18,372
28,42,868
67,53,590Gross profit67,53,590
67,53,590
(16) BALANCE SHEET
(1) YEAR
liability Rs.Assets Rs.
Own capital 60,00,000 + Interest onCapital 3,60,000 + Net profit 28,42,868
Provision for taxes
12 % Bank loan
Out Standing Interest on Loan Creditors
Bills Payable
92,02,868
12,18,372
36,00,000
6,00,000
2,97,000
29,700
1,49,47,940Land & Building 39,40,000 - dep. 3,94,000 Plant & Machinery 9,73,000- dep. 1,45,950 Furniture 7,08,000 - dep. 70,800 Computer 1,20,000 - dep. 72,000 Debtor Bills Receivable preliminary - Expenses 80,000- Written off 8,000 Closing stock Raw material + finish Goods Cash in hand
35,46,000
8,27,050
6,37,200
48,000
48,60,00036,45,000
72,000
1,80,0009,00,000
2,32,690
1,49,47,940
TRADING ACCOUNT
(2) YEAR
Particular Rs.Particular Rs.
To opening stock Raw material Finish goods
To purchase of materialTo salary & wagesTo utilities
Gross Profit
1,80,0009,00,000
27,90,0004,89,6001,80,000
1,01,30,400
1,46,70,000By sales Cash-40% 52,20,000 Credit-60% 78,30,000
By closing stockRaw material Finish goods
1,30,50,000
2,70,00013,50,000
1,46,70,000
PROFIT AND LOSS ACCOUNT
(2) YEAR
Particular Rs.Particular Rs.
To salary & wagesTo utilities To other expenses Fixed exp. 2,52,000 Variable exp. 1,62,000
To depreciation Land & building Plant & machinery Furniture Computer
To interest on bank loanTo interest on capital (6%)To preliminary expenses To provision for taxes
NET PROFIT
4,89,6001,20,000
6,09,600
3,54,6001,24,05763,72028,800
5,40,000
5,52,17280,00022,09,035
51,54,416
1,01,30,400
Gross profit1,01,30,400
1,01,30,400
BALANCE SHEET
(2) YEAR
liability Rs.Assets Rs.
Own capital 92,02,868+ Interest onCapital 5,52,172+ Net profit 51,54,416
Provision for taxes
12 % Bank loan
Out Standing Interest on Loan Creditors
Bills Payable
1,49,09,456
22,09,035
32,00,000
5,40,000
4,18,500
41,850
2,13,18,841Land & Building 35,46,000- dep. 3,54,600 Plant & Machinery 8,27,050- dep. 1,24,057 Furniture 6,37,200- dep. 63,720 Computer 48,000- dep. 28,800 Debtor Bills Receivable preliminary - Expenses 80,000- Written off 2,000 Closing stock Raw material + finish Goods Cash in hand
31,91,400
7,02,993
5,73,480
19,200
78,30,00058,72,500
72,000
2,70,00013,50,000
14,37,268
2,13,18,841
TRADING ACCOUNT
(3) YEAR
Particular Rs.Particular Rs.
To opening stock Raw material Finish goods
To purchase of materialTo salary & wagesTo utilities
Gross Profit
2,70,00013,50,000
36,90,0006,52,8002,40,000
1,35,07,200
1,97,10,000By sales Cash-40% 70,20,000 Credit-60% 1,05,30,000
By closing stockRaw material Finish goods
1,75,50,000
3,60,00018,00,000
1,97,10,000
PROFIT AND LOSS ACCOUNT
(3) YEAR
Particular Rs.Particular Rs.
To salary & wagesTo utilities To other expenses Fixed exp. 2,52,000 Variable exp. 2,16,000
To depreciation Land & building Plant & machinery Furniture Computer
To interest on bank loanTo interest on capital (6%)To preliminary expenses To provision for taxes
NET PROFIT
4,89,6001,20,000
4,68,000
3,19,1401,05,44857,34811,520
4,80,000
8,94,56780,00031,44,293
73,36,684
1,35,07,200
Gross profit1,35,07,200
1,35,07,200
BALANCE SHEET(3) YEAR
liability Rs.Assets Rs.
Own capital 1,49,09,456+ Interest onCapital 8,94,567+ Net profit 73,36,684
Provision for taxes
12 % Bank loan
Out Standing Interest on Loan Creditors
Bills Payable
2,31,40,707
31,44,293
28,00,000
4,80,000
5,53,500
55,350
3,01,73,850
Land & Building 361,91,400- dep. 3,19,140 Plant & Machinery 7,02,993- dep. 1,05,448 Furniture 5,73,480- dep. 57,348 Computer 19,200- dep. 11,520 Debtor Bills Receivable preliminary - Expenses 80,000 - Written off 2,000 Closing stock Raw material + finish Goods Cash in hand
28,72,260
5,97,545
5,16,132
7,680
1,05,30,00078,97,500
72,000
3,60,00018,00,000
55,20,733
3,01,73,850
(17) STATEMENT OF PROFITABILITY
particular year-1year-2year-3
sale-variable81,00,00023,54,4001,30,50,00035,31,6001,75,50,00047,08,800
contribution-fixed exp.57,45,6008,61,60095,18,4008,61,6001,28,41,20086,600
EBDIT-Dep.48,84,0006,82,75086,56,8005,71,1771,19,79,6004,93,456
EBIT-Int.on loan Int.on capital42,01,2506,00,0003,60,00080,85,6235,40,0005,52,1721,14,86,1444,80,0008,94,567
EBT-Tax @ 30%32,41,2509,72,37569,93,45120,98,0351,01,11,57730,33,473
PAT22,68,87548,95,41670,78,104
(18) COST SHEET
PARTICULARSYEAR -1YEAR -2YEAR -3
Opening stock of raw material_1,80,0002,70,000
(+) purchase of Raw material19,80,00027,90,00036,90,000
(-) Closing stock of Raw material1,80,0002,70,0003,60,000
Consumption of Raw material18,00,00027,00,00036,00,000
(+) salary wages3.26,0004,89,0006,52,800
(+) Utilities1,20,0001,80,0002,40,000
Prime cost22,46,00033,69,00044,92,800
(+) Utilities1,20,0001,20,0001,20,000
Factory cost23,66,00034,89,00046,12,800
(+) salary-wages4,89,6004,89,6004,89,600
(+) Other expenses2,52,0002,52,0002,52,000
Office cost31,07,60042,30,60053,54,400
(+) opening stock of finished goods-9,00,00013,50,000
(-) Closing stock of finished goods9,00,00013,50,00018,00,000
Cost of production22,07,60037,80,60049,04,400
(+) Other expenses1,08,0001,62,0002,16,000
Total cost23,15,60039,42,60051,20,400
(+) profit57,84,40091,07,4001,24,29,600
Sales81,00,0001,30,50,0001,75,50,000
RISK FACTOR
Every new business needs to determine its risk factors that the business will face. If risk factors are carefully determined then the entrepreneur can take better measure to see that they have limited effect on the business following are some of the risks that the new business will face:- The risk of failure of the position It may take time to beat the competitors product. Due to heavy advertising, it might prove to be expensive and might not give desired results. Initially, the production would be low but cost of production may be higher. The business would take a longer period to reach breakeven point. Initially, the required amount of sales will not be achievable and will result in loss. Non-acceptance from the customers side.
SWOT ANALYSIS
Full form of SWOT:
STRENGTH:- Satisfaction of the consumer about the product of the company is main strengths. Best operation control for quality assurance.
WEAKNESS:-
lack of co-ordination between various departments.
OPPORTUNITIES:- Every year 10% market growth and demand is higher than supply.
THREATS:- Government rules and regulation change every time.
FUTURE PLAN
Every units aims at its growth and development in future at the time of establishment. The future development of any unit shows its success in the market. Future development may be getting through the increasing installed capacity or utilizing the existing resources of the unit to the full extend. So far as our unit is concern we have to utilize fully the available resources of our unit and by increasing production capacity we want to cover none market share with maintenance of good quality. There are so many varieties of pressure cooker in the market. The consumption of pressure cooker has been increasing over the year. We want to cover more market in India as well as in international level.
CONCLUSION
The motto of ROYAL PRESSURE COOKER will be to provide best quality, with fever prices. The company will have to continue same motto and provide better at lower rate.One of the good things will be that we will hold briefing discussion every day. In which, we discuss the problem and find solution. Every business unit wants to earn maximum profit. But, ROYAL PRESSURE COOKER aim will not only earn maximum profit but also take care of people health.We will never compromise with quality .this will be the way by which we can capture the market as well as earn profit.
Reference Book:
1. Marketing Management:Philip Kotler
2. Marketing Management:S.A Sherlekar
3. Finance Management:Khan & Jain
1 MVM COLLEGE RAJKOT
