ppr on folding wall(cement)

PPR ON FOLDING WALL

APRDUCT PROJECT REPORT ON

Shri Ram Folding walls

Prepared By: PATEL KRUPALI S.

Roll No: 83

Seat No: -

Class: BBA SEM-5

Academic year:2013-2014

College:Matushri Virbaima Mahila College Of Commerce, Management & It

Guided by:

Prof. Dharti Nathwani

Prof. Kalpesh Radiya

Submitted To:Saurashtra University

1MVM COLLEGE RAJKOT

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2MVM COLLEGE RAJKOT

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1.1) INTRODUCTION TO SMALL SCALE INDUSTRY

India is a developing country & most of the people in India depend on agriculture but slowly & gradually people are coming in Industrial sector. Due to less rainfall & unemployment in agriculture.The industries are classified into three categories.

a) Large Scale Industry b) Medium Scale Industry c) Small Scale IndustrySmall Scale Industry is most important part of any country. SSI provides platform to entrepreneurs for starting business. Govt. has defined SSI many times on different parameters. The industry whose investment in plant & machinery is up to 3 corers is termed as SSI.

SSI is the base for medium & large scale industry. It also give chance to new & young entrepreneurs to start a unit with very limited capital & it would ultimately play great role in shaping the country’s economy.

Project Report is very important for any business unit. Each unit is required to prepare project report for finance or for other purposes. A successful project contributes towards increase in Gross National Product which results into ultimate well being of the people in general. An unsuccessful project on the contrary, proves a burden on the scarce national resources as it does not contribute towards Gross National Product. Even- though it has developed resources for creation of assets lying unutilized or underutilized.

This project report is on Small Scale Unit which is engaged in producing folding wall. Folding wall is product which falls under cement industry

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1.2INTRODUCTION TO PPR

“Folding walls” is use for protection of farms& garden. Some families in gujrat use of folding walls for decorate the boundary their house.

“Folding walls” is a product which falls under the category of “cement Industry”. it has a wider scope of usage the raw material. manufacturing process is also simple. The product is more famous in Gujarat & public is spreader all over India. Thus, over product can over more area of market for the sale of product. Hence, in general the product is accepted by all & used on a large scale.

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1.3PROJECT AT A GLANCE

Name of the Unit “Shri Ram Folding Wall”

Tag line “Best Quality Is Here”

Promoter’s Name Patel krupali

Communication address TO -:Dhokaliya,Plot no-:155,Ta-:paddhari,Rajkot

Registration office Address TO -:Dhokaliya,Plot no-:155,Ta-:paddhari,Rajkot

Telephone No. 0281 2914395

Fax No. Not applicable

Form of Organization sole proprietorship

Size of the unit small scale industry

Brand Name “Shri Ram”

Usage of the product Protection of farm

SSI Registration No. Applied for

Number of employee 5

Investment 41,74,050

Day off Wednesday

Sources of finances 1.Owner’s capital (60%) 25,04,4302.Borrowed capital (40%) 16,69,620

5MVM COLLEGE RAJKOT

Investment in working capital 4,36,050

Investment in fixed capital 5,32,740

Relation with Bank State bank of India

Company logo

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1.4)PROMOTER’S BACKGROUND

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Name Patel Krupali S.

Age 24

Address To –dhokaliya,Survey no-151Ta-paddhari,Dist-rajkot,

Education/Qualification MBA

Experience Fresher

Nature of Responsibility Managing marketing & finance

Contribution in the unit 60%

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1.5)JUSTIFICATION OF LOCATION

Selection of location of factory is one of the important decision for any of the company. Location of the company directly affect the profit as well as cost of production. So at the time of selection of the company location is carefully. Generally company select that location where all the basic facilities like water, raw-material, infrastructure, transportation etc are easily available.

Labours:

Man-power is the heart of the company. Generally all type of man-power are available have at reasonable rates. As for as this manufacturing company is connected with semi skilled labours are available near to the villages.

Raw-materials:

Raw-materials is most affect to decide the plant location. We use raw-material cement, grit, water, sand in manufacturing folding wall. So it is easily get from nearest rajkot. We purchase the raw-materials from the other company.

Transportation:

In this company transportation is mostly used because of the folding wall transfer from company to customer through truck or tractors. So transportation facility easily available and company also situated on near to the road.

proximity to market:

The unit deals in Rajkot market thus, market is very near for the unit. In the future to expand market is also easy because Gondal, Morbi, Shapar, Veraval etc. small towns are also near.

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Other factors In other factors like electric connection, water

supply, technical knowledge, maintenance of machinery which are responsible for set up our industry in this area.

Above description we can say that the Shri Ram Folding Wall Location is the best location because of every facility are available to make a best location.

Jamnagar road

LOCATION OF UNIT -: TO -:Dhokaliya, Plot no-:155, Ta-:paddhari, Rajkot

9MVM COLLEGE RAJKOT

DHOKALIYA

KHANDHERI CRICKET STADIUM RAJKOT

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1.6) ORGANIZATION STRUCTURE

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OWNER

GeneralManager

Factory Manager

Workers Workers

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1.7)VISION & MISSION OF THE COMPANY

Vision Constantly produce different quality of “Folding wall”. Improving quantity. Maximum customer satisfaction.

Mission

Mission of the unit is to set the best quality stander for the society. To improve the economic condition of the country by social

changes.


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1.8)BASIS AND PRESUMPTION

There is some basis and presumptions, the company has decided, are as follows:-

1. Our investment criteria would be up to 2 crore.2. The ratio of owner’s capital and borrowed capital would be 60:40.3. The minimum wage rates would be 2000.4. There are 6 working days a week.5. We are going to use 50%, 75% and 100% capacity of machinery

in the respective years.6. The pay-back period of loan would be 10 years.


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1.9)IMPLEMENTATION SCHEDULE

No. Particulars Time Period

1. Preparation of Project Report 1 Month

2. Acquisition of Land 1 Month

3. SSI Registration 1 Week

4. Approval of loan 1 Month

5. Construction of Building 1 Months

6. Acquisition of Machinery 1 Month

7. Installation of Machinery 15 Days

8. Arrangement of Power 1 Month

9. Appointment of Staff &Labour 15 Days

Trail & Production will start from 8th month onward.


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2.1)PLANT LAYOUT

According to F. G. Moore ,

“A good layout is one which allows materials rapidly and

directly for processing. This reduces transport handling, clerical and other

costs down per unit, space requirements are minimized and it reduces

ideal machine and ideal man time”

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.

SHRI RAM INDUSTRY will have U 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.


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2.2)RAW MATERIAL

The two basic raw materials used in the product is “cement” & “grit”. Secondly, “sand”, “water”&”iron are added to it . The raw materials used in the product are simple & are available easily in city like “Rajkot”.

However to maintain quality of final product a bit higher prices are to be

paid for inputs. Easy availability & enough quantity are the best features

of the raw materials. Even it is really easy to transport the materials.

cement, grit, sand & Water are product that ease the task of material

management & thus, it reduces overlapping or backtracking in

manufacturing process also.

1)CEMENT-:


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2)GRIT-:

3)SAND-:


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2.3) MACHINERY AND EQUIPMENT

Like raw materials machinery is also available easily. Some of the main acquired from local rajkot & some are acquired from Ahmadabad city.Mixing miller, vibrator, generator the machinery used in production process of folding wall(cement).

Sr. No.

Name of Machiner

y

Name of Suppliers

Units

Rs. Per Unit

Amount

1. Mixing miller

“shiv”enterpriserajkot

1 35,000

35,000

2. Vibrator “classic machinery” ahmedabad

3 30,000

60,000

3. generator “Suner machinery”rajkot

1 55,000

55,000


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2.4)SUPPLIERS OF RAW MATERIAL AND

MACHINERY

RAW MATERIAL

1) Cement -: “Suraj cement” Near post office, Rajkot.

2) Sand-: -: “Mr. shah & co.” Morbi road, Rajkot.

3)Grit-: -: “prince enterprise” Kalawad road , Rajkot.

4)water: -: Mega Water Supply, Umang Nagar, Opp. New Medical,

Rajkot.

MACHINERY

1) Mixing miller-:“shiv”enterprise Rajkot

2)Generator - -: “Classic Machinery” Ahmadabad

3)Vibrator -: “Suner machinery” Rajkot


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2.5)FLOW CHART OF PRODUCTION PROCESS


RAW MATERIAL

MIXING IN MILAR

VIBRATORE

SHAPER BOXES

DRYING

JOINT SHEET OF CEMENT

FOLDING WALL

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2.6)PRODUCTON PROCESS

Manufacturing process of Folding wall is very simple. Cement, sand, and

grit have to be put into mixing miller along with the required quantity of

water, to get folding wall. Ease of manufacture is a primary reason for

selecting this product for manufacturing.

We bough the raw – materials like cement, sand, grit, and water from

dealer in Rajkot . It is nearest to the “SHRI RAM” company. So, reduce

transportation cost.

Then all the raw-material mixing in miller machine which properly mix

raw-material.

Mixing raw material put in shaper boxes and gives the shape.

Shaper boxes put on the vibrator machine. so, vibrator help to fill mixture

appropriately in shaper boxes.

After vibrating the shaper box. The workers keep the boxes in the

bask .so, they dry over there and then we discard the cement sheets from

shaper box.

Now last stage of this process that joint cement sheet and making folding

wall.


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2.7) PRODUCTION CAPACITY

Year Installed

capacity

Utilized capacity Units

1 100% 50% 60000

2 100% 75% 90000

3 100% 100% 120000

1) No. of shifts per day: 1shift (i.e. 8hours)

2) No of working days p.m.: 25days

3) No. of working days p.a.: 300days


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2.8)

POLLUTION CONTROL & ENERGY

CONVERSION

POLLUCTION CONTROL:

The entrepreneur is advice to contact concerned state pollution control

board for detailed guidance in the matter.

“Shri Ram Folding wall” not use 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, it’s small yet some important point for

conservation of energy are given below.

1)In electronically installation appropriate electric motors should be &

properly installed.


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2.9)QUALITY CONTROL AND STANDARD

Today in the modern area of an industrialization product are produced on

a large scale to take the advantage of mass scale production. This creates

verification in the size or composition of the product if the quality or

standard not maintain.

Maintaining the quality of a product mean keeping its size & composition

within the tolerance limit. And also applied for ISO certificates.

To survive in a competitive business environment, organization makes all

possible efforts to produce the products, which satisfy their customers to

the maximum extent. He long on its ability to maintain the quality

standards as decided by the management and accepted by the customer.

The quality standards are described in terms of speciation like size, color,

shape, taste etc. the quality control is maintained by testing the actual

production and ascertaining that whether they conform to the standards.


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10. WASTAGE MANAGEMENT

Waste management is the collection, transport, processing or disposal, managing and monitoring of waste materials. The term usually relates to materials produced by human activity, and the process is generally undertaken to reduce their effect on health, the environment or aesthetics. Waste management is a distinct practice from resource recovery which focuses on delaying the rate of consumption of natural resources.

Waste management practices can differ for developed and developing nations, for urban and rural areas, and for residential and industrial producers. Management for non-hazardous waste residential and institutional waste in metropolitan areas is usually the responsibility of local government authorities, while management for non-hazardous commercial and industrial waste is usually the responsibility of the generator subject to local, national or international controls.

Wastage management in SHRI RAM is done by disposing the waste in proper form and all defective folding wall sell at lower price.


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3.1)MARKET POTENTIAL

The business is becoming more & more competitive everyday.

We generally believe that the business segment in which we will we

operate offers us opportunity for growth. In such competition, one has to

Endeavour their skills in quality product gifting, brand equity & healthy

distribution network so, as to maintain a sustainable, stable & leading

position in the market.

Before ten years ago, farmers are not use folding walls. But now the era has changed and farmer’s move to use of folding wall. Some peoples are use Folding wall for decorated their boundary of house.


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3.2)MARKET SEGMENTATION

A market consists of buyers who different each other in one aspect or another. They may different in their wants, purchasing buying attitudues, preferences etc. so, that needs of each group may be satisfied separately. In other words development of market or to facilitate maximum utilization of available marketing resources and to increase their sales.

The firm segments the market like upper class & middle class & lower calss. Firm prodution three types of model. According to different class of people.

100% farmers are using Folding wall it is the ratio of Folding wall market segmentation.


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3.3)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 customer 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 advertise on folding wall by paints.

.


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3.4)PRICING POLICY

Price is economic value of goods or services expressed in term of money.

Price is the marketing mix element that produces revenue; the other

produce costs. Price also one the most flexible element. It can be changed

quickly, unlike products features cannel commitments. Pricing governs

the very remissibility of any marketing program because it is only

element in a marketing mix accounting for demand as well unit of

revenue. All other element in marketing mix such as promotion and

distribution and cost element.

There are various pricing policy in market like..

1) Skimming pricing

2) Penetration pricing

3) Cost oriented pricing

4) Demand oriented pricing

In this company influence cost oriented pricing. Manager set the price

keep in mind the points like production cost, distribution cost, advertising

cost sales promotion cost marketing expenses.

The pricing policy may be define as a policy regarding fixing the

price of products on service kipping view the feature like enterprise goal,

cost, competitor, price demand etc.


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3.5)DISTRIBUTION CHANNEL


Owner

Customer

Agent

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3.5) COMPETITORS

In the fast growing world of technology almost each and every company

may be having some or the other competitors.

The company “Shri Ram Folding Wall” faces competition from the

following competition in the local market.

Satya folding wall

Angel folding wall

Ronak folding wall


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A) TOTAL FIXED ASSETS

A-1)Land& building

Land 7,00,000Land development & fencing 2,00,000Production building 9,00,000Office building 2,50,000Storage house 1,30,000Watch men’s cabin 50,000Bore well 1,00,000Water tank 20,000Lavatory & bathroom 25,000Main gate 13,000Total 23,88,000


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A-2)Plant & machinery

Sr No. Particular Quantity Rate per machine

Value

1. Mixing miller 1 35000 350002. Vibrator 2 30000 600003. Generator 1 55000 55000

Total 4 150000


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A-3) Preliminary expenses

Sr. No. Particular Rs.1. Consultancy fees 2,6002. Project report preparation fees 5,003. Legal expenses of company formation 4,800

Total 7,900


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A-4)Furniture

Sr No.

Name of the item Quantity Rate per unit

Amount

1. Ordinary table 5 3,000 15,0002. Computer table 1 2,000 2,0003. Chairs 35 3,017 1,05,6004. Sofa sets 3 1,50,000 4,50,0004. Fen 20 1,500 30,0005. Light 30 500 15,0006. Door 15 10,000 15,0007. windows 20 4,000 80,0008. C.C.T.V. camera 5 10,500 52,5009. Air conditioner 2 70,000 1,40,00010.refrigerator 2 80,000 1,60,00011.computers 1 30,000 30,000


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TOTAL FIXED ASSETS

Particular Rs.

Land & building 23,88,000

Plant & machinery 1,50,000

Preliminary expenses 7,900

Furniture 12,00,100

Total 37,38,000


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A) TOTAL WORKING CAPITAL

B-1)Raw material (monthly)

Particular Qty. Rate AMT

Cement (per bag) 150 300 45000

sand(tone) 30 600 18000

Grit 30 300 9000

Total 72000


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B-2)Salary and wages

Designation No. of employee

Salary per month

Total amt. monthly

Total yearly

General manager 1 15,000 15,000 1,80,000Factory manager 1 13,000 13,000 1,56,000Watchmen 1 3000 3000 36000Worker 5 4500 22500 270000Total 53,500 642000


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B-3)Utility (production facilities)

Particular Monthly amt. Yearly amt.Power 3,500 42,000Water 4,500 54,000Total 8,000 96,000


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B-4) Other expenses

Particular monthly Yearly Postage & stationary 1,000 12,000Telephone charge 1,600 19,200Transport charge 2,000 24,000Advertisement expenses 1,500 18,000Insurance 3,000 36,000Repair & maintenance 7,00 8,400Selling expenses 1,500 18,000Other miscellaneous expenses 550 6,600Total 11,850 1,42,200


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TOTAL WORKING CAPITAL(per month)

Sr No. Particular Amount A. Raw material 72,000B. Salary and wages 53,500C. Utility 8,000D. Other expenses 11,850

Working capital *3month 1,45,350*3Total working capital 4,36,050


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C)TOTAL INVESTMENT

Particular Rs.

Total fixed assets 37,38,000

Total working capital 4,36,050

total 41,74,050


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D)SOURCES OF CAPITAL

Total investment 41,74,050

Own capital Borrowed (60%) (40%) 25,04,430 16,69,620


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E)LONE PAYMENT SCHEDUAL

Year Opening balance Interest Closing1. 16,69,620 2,00,354 15,02,6282. 15,02,628 1,80,316 13,35,6963. 13,35,695 1,60,283 11,68,7344. 11,68,734 1,40,248 10,01,7725. 10,01,772 1,20,212 8,34,8106. 8,34,810 1,00,177 6,67,8487. 6,67,848 80,141 5,00,8868. 5,00,886 60,106 3,33,9249. 3,33,924 40,070 1,66,96210. 1,66,962 20,035 -


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F)DEPRICIATION FIXED ASSETS

(1) YEAR

Name of the assets Opening balance

Depreciation Closing balance

Land & building (10%) 23,88,000 2,38,800 21,49,200Plant & machinery (15%) 1,50,000 22,500 1,35,000Furniture (10%) 12,00,100 1,20,010 10,80,090Computer (60%) 30,000 18,000 12,000

(2)YEAR



Land & building (10%) 21,49,200 2,14,920 19,34,280Plant & machinery (15%) 1,35,000 20,250 1,14,750Furniture (10%) 10,80,090 1,08,009 9,72,081Computer (60%) 12,000 7,200 4,800

(3)YEAR



Land & building (10%) 19,34,280 1,93,428 17,40,852Plant & machinery (15%) 1,14,750 17,215 97,535Furniture (10%) 9,72,081 97,208 8,74,873Computer (60%) 4,800 2,880 1920


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G) ESTIMATED PRODUCTION AND SALES

(A) Estimation of production

Year Opening stock

Production Sales Closing stock

1 - 16,200 16,000 2002 200 24,300 24,000 5003 500 32,400 32,500 400


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H) STOCK OF RAW MATERIAL(in units)

Particular 1 2 3Opening stock (unit)+ purchases (unit)_consumption (unit)

0

48,80048,600

200

73,20072,900

500

97,10097,200

Closing stock * Rate Per unit

200200

500200

400200

Closing stock in Rs. 40,000 1,00,000 80,000


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I)TOTAL FIXED EXPENSES

Fixed cost per unit = Total Fixed Cost At 100% Total production at 100%

= 5,32,740 32,400

=16.44


Particular Amount

Salary & wages (60%) 3,85,200

Utilities (50%) 48,000

Other expenses (70%) 99,540

Total fixed expenses 5,32,740

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J)TOTAL VARIABLE EXPENSES

Particular Amt.Raw material(100%) 8,64,000Salary & wages (40%) 2,56,800Utility (50%) 48,000 Other expenses (30%) 42,660Total 12,11,460

Variable cost per unit = Total Variable Cost At 100% Total production at 100%

= 12,11,460 32,400

= 37.39


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K)TOTAL COST

Total cost = total fixed expenses + total variable expenses

= 5,32,740 + 12,11,460 = 17,44,200


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L)BREAK EVEN POINT IN UNIT

Break Even Point In Unit = fixed cost Selling price – variable expenses per unit

= 5,32,740 200-153

= 5,32,740 47

BEP = 15


BEP = 11,335

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M)BREAK EVEN POINT IN RS.

Break Even Point in Rs. = BEP in Rs.* selling price per unit

= 11,335 * 20


BEP in Rs. = 22,67,000

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N )TABLE SHOWING FIGURES OF SALES


year prod. Capacity sales(unit)

selling price per unit Rs.

total sales Rs.

1 50% 16,000 200 32,00,0002 75% 24,000 200 48,00,0003 100% 32,500 200 65,00,000

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O) TABLE SHOWING FIXED EXPENSES


particular year-1 year-2 year-3salary& wages

(60%)3,85,200 3,85,200 3,85,200

utilities (50%) 48,000 48,000 48,000

other exp. (70%)

99,540 99,540 99,540

total 5,32,740 5,32,740 5,32,740

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P) TABLE SHOWING VARIABLE EXPENSES


Particular Year-1 (50%)

year-2(75%)

year-3(100%)

Raw material 8,64,000 12,96,000 17,28,000Salary & wages (40%)

2,56,800 3,85,200 5,13,600

Utility (50%) 48000 72000 96000Other expenses (30%)

42660 63990 85320

Total 12,11,460 18,17,190 24,22,920

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Q)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

_ _

8,64,0002,56,80048,000

21,51,200

33,20,000

By sales Cash (40%)12,80,000Credit (60%)19,20,000

By closing stockRaw material Finish goods

32,00,00012,80,00019,20,000

8000040000

33,20,000


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R)PROFIT AND LOSS ACCOUNT

(1) YEAR

Particular Rs. Particular Rs.

To salary & wagesTo utilities To other expenses -:Fixed exp. Variable exp.To depreciation -: Land Plant Furniture computersTo interest on loanTo interest on capital (6%)Preliminary exp. To provision for taxation

NET PROFIT

3,85,20048,000

99,54042,660

2,38,80022,5001,20,01018,0002,00,345150265

7902,47,524

5,77,556

21,51,200

Gross profit 21,51,200

21,51,200


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S)BALANCE SHEET

(1) YEARliability Rs. Assets Rs.

Own capital 25,04,430+ Interest onCapital 1,50,265+ Net profit 5,77,556

Bank loanOutstanding interest on loanCreditorsProvision for taxation

Bill payable

32,32,251

15,02,658

2,00,3545,18,4002,47,524

1,03,680

5804867

Land &Building 23,88,000- dep. 2,38,800Plant &Machinery 1,50,000 - dep. 22,500Furniture 12,00,100- dep. 120010Computer 30,000- dep. 18,000Debtor Bill receivablepreliminary Expenses

Closing stock Raw material 80,000

+ finish Goods 40,000

Cash on hand

21,49,200

1,35,000

10,80,090

12,00017,60,0003,52,0007,110

1,20,000

1,89,467

5804867


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Q)TRADING ACCOUNT

(2) YEAR

Particular Rs. Particular Rs.To opening stock Raw material Finish goods


GROSS PROFIT

80,000 40,000

12,96,0003,85,20063990

32,34,810

51,00,000

By sales Cash (40%) 1,920,000Credit(60%) 28,80,000


48,00,000

2,00,0001,00,000

51,00,000


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1) YEAR

Particular Rs. Particular Rs.To salary & wagesTo utilities To other expenses -:Fixed exp. Variable exp.To depreciation -: Land Plant Furniture computersTo interest on loanTo interest on capital (6%)Preliminary exp. To provision for taxationNET PROFIT

3,85,20048,000

99,54063,990

2,14,92020,2501,08,0097,2001,80,3151,93,935

7905,73,798

13,38,862

32,34,810


32,34,810


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S)BALANCE SHEET

2)YEAR

liability Rs. Assets Rs.



Bill payable

47,65,048

13,35,696

1,80,3167,77,6005,73,798

1,55,520

7787978

Land &Building 21,49,200- dep. 2,14,920Plant & Machinery 1,35,000- dep. 20250Furniture 10,80,090 - dep. 1,08,009Computer 12,000- dep. 7,200Debtor Bill receivablepreliminary Expenses

Closing stockRaw material 2,00,000

+ Finish goods 1,00,000

Cash on hand

19,34,28

1,14,750

9,72,081

4 80036,00,007,20,0006,320

3,00,000

1,35,747

7787978


PPR ON FOLDING WALL

Q) TRADING ACCOUNT

(3) YEAR

Particular Rs. Particular Rs.To opening stock Raw material Finish goods


GROSS PROFIT

2,00,000 1,00,000

17,28,0005,13,60096,000

41,02,400

67,40,000

By sales Cash (40%) 26,00,000Credit(60%) 39,00,000


65,00,000

1,60,00080,000

\

67,40,000


PPR ON FOLDING WALL


3)YEAR

Particular Rs. Particular Rs.To salary & wagesTo utilities To other expenses -:Fixed exp. Variable exp.To depreciation -: Land Plant Furniture computersTo interest on loanTo interest on capital (6%)Preliminary exp. To provision for taxation

NET PROFIT

3,85,20048,000

99,54085,320

1,93,42817,21597,2082,8801,60,2832,85,902

7908,17,990

19,08,643

41,02,400


41,02,400

S) BALANCE SHEET


PPR ON FOLDING WALL

3)YEAR

liability Rs. Assets Rs.



Bill payable

69,59,593

11,68,734

1,60,28310,36,80081,79,90

20,73,60

10,350,70

Land &Building 19,34,280- dep. 1,93,428Plant &Machinery 1,14,750- dep. 17,215Furniture 9,72,081- dep. 97,208Computer 4,800- dep. 2,880Debtor Bill receivablepreliminary Expenses

Closing stockRaw material 1,60,000

+ Finish goods80,000

Cash on hand

17,40,852

97,535

8,74,873

1,92059,15,00011,83,0005,530

2,40,000

2,92,050

10,350,70


PPR ON FOLDING WALL

T) STATEMENT OF PROFITABILITY

particular year-1 year-2 year-3

sale-variable

32,00,00012,11,460

48,00,00018,17,190

65,00,00024,22,920

contribution-fixed exp.

19,88,5405,32,740

29,82,8105,32,740

40,77,0805,32,740

EBDIT-dep.EBIT-interest on loan-interest on cap.

14,55,8003,99,31010564902,00,3541,50,265

24,50,0703,50,37920,99,6911,80,31619,39,35

35,44,3403,10,73132,33,6091,60,2832,85,902

EBT-taxes (30%)

7,05,8712,11,761

17,25,4405,17,632

27,87,4248,36,227

PAT 4,94,110 12,07,808 19,51,068


PPR ON FOLDING WALL

U) COST SHEET


PARTICULARS YEAR -1

YEAR -2

YEAR -3

Opening stock of raw –material

_ 80,000 2,00,000

(+) purchase of Raw material

8,64,000 12,96,000 17,28,000

(-) Closing stock of Raw material

80,000 2,00,000 1,60,000

Consumption of Raw material

7,84,000 11,76,000 17,68,000

(+) salary wages 2,56,800 3,85,200 5,13,600

(+) Utilities 48,000 72,000 96,000

Prime cost 10,88,800 16,33,200 23,77,600

(+) Utilities 48,000 48,000 48,000

Factory cost 11,36,800 16,81,200 24,25,600

(+) salary-wages 2,56,800 3,85,200 5,13,600

(+) Other expenses 42,660 63,990 85,320

Office cost 14,36,260 21,30,390 30,24,520

(+) opening stock of finished goods

- 40,000 1,00,000

(-) Closing stock of finished goods

40,000 1,00,000 80,000

Cost of production 13,96,260 20,70,390 31,44,520

(+) Other expenses 42,660 63,990 85,320

Total cost 14,38,920 21,34,380 32,29,840

(+) profit 17,61,080 26,65,620 32,70,160

Sales 32,00,000 48,00,000 65,00,000

PPR ON FOLDING WALL


PPR ON FOLDING WALL

RISK FACTOR

1. Changes in Government policies for this type of industries may

affect the organization positively or negatively accordingly, as

profit may increase or decrease due to Government’s intervention.

2. There is always risk of competition from existing & potential units.

But to avoid this risk, cost reduction through ideal utilization of

resources, use of good quality of raw material etc. will be helpful.

3. The company must take competition into consideration of existing

and new units, as it is normal and prevalent factor in every industry


PPR ON FOLDING WALL

SWOT ANALYSIS

STRENGTH:-

Satisfaction of the consumer about the product of the company is main

strengths.

Best operation control for quality assurance.

Low maintenance of this product.


PPR ON FOLDING WALLWEAKNESS:-

We are giving less advertisement.

OPPORTUNITIES:-.

By making some good promotional efforts, company can gain more no.

of customers who will be loyal.

Company can appoint young & fresh employee to ease the official

work.

THREATS:-

Government rules and regulation change every time.

Competition with big giants..


PPR ON FOLDING WALL

FUTURE PLANNING

Every units aims at its growth and development in future at the time of establishment. But, The future development of any unit shows its success in the market. Every body’s future is uncertain although everybody plans for their future


PPR ON FOLDING WALL Future development may be get through the increasing installed capacity or utilizing the existing resources of the unit to the full extend.

The future plan of the company indicates what the company wants to do on future. The development of this industry increases with the demand for various cement products. Cement product like boundary wall, fencing poll, cement bricks etc. Therefore the future plan of the company is to increase its production various product, so as to meet the requirement.

So far as our unit is concern we have to utilize folly the available resources of our unit and by increasing production capacity we want to cover more market share with maintenance of good quality.


PPR ON FOLDING WALL

CONCLUSIONS

In the product project report I have discussed all the financial data and other relevant information.

As such we as a citizen of India having some responsibility to uplift the economic level and also make the life more and more compatible.


PPR ON FOLDING WALL Thus, we are feeling great pleasure to make the product in front of

you and so expecting move response from market& trying to satisfying the prospecting customer.

At last it can be said that future of this product is very bright with expectation of high profitability.


PPR ON FOLDING WALL

Reference Book:

1. Marketing Management : Philip Kotler

2. Marketing Management : S.A Sherlekar


PPR ON FOLDING WALL

3. Finance Management : Khan & Jain


Date post:	14-Jun-2015
Category:	Business
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ppr on folding wall(cement)

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