CERTIFICATE - techshristi.com · projections done properly. It becomes the market driven strategic...

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K.S.SCHOOL OF BUSINESS MANAGEMENT

CERTIFICATE

This is to certify that members of group “U” of third year MBA of K.S.

School of Business Management have successfully completed their feasibility

report on ice-cream co. for the academic year of 2010-11 and have duly

submitted to the institute.

Project guide:

Dr. Anjali Gokharu

Date of submission: 10th march, 2011


GUJARAT UNIVERSITY

AHMEDABAD.

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NAME OF GROUP MEMBERS

ROLL NO. NAME

3136 SHAH CHINTAN J.

3137 SHAH DHRUMIT G.

3156 VISHNAV NIRALI K.

3161 BALSOD KAJAL D.

3162 BHARATIYA KRISHNA A.

3163 BORAD YOGITA M.

3167 CHUDASAMA RADHA R.

3181 MODI HEENA D.

3182 NAVLAKHA VINAY D.

3198 RATHOD NILAM D.

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INDEX

CHAPTER

NO.

PARTICULAR PAGE NO.

1 INTRODUCTION 5

ACKNOWLEDGEMENT

PREFACE

FEASIBILITY REPORT

PROJECT REASONING

PROJECT AT GLANCE

2 HISTORY 13

HISTORY OF INDUSTRY

3 LEAGAL FEASIBILITY 16

PARTNERSHIP DEED

BUSINESS ENVIRONMENT

PEST ANALYSIS

SWOT ANALYSIS

4 TECHNICAL FEASIBILITY 27

RAW-MATIRIAL

PROCESS CHART

PROCESS FLOW

TECHNICAL FEASIBILITY OF MACHINERY

PLANT LAYOUT

OTHER ASSETS

LOCATION ANALYSIS

LAYOUT ANALYSIS

5 HUMAN RESOURCE FEASIBILITY 48

ORGANISATION CHART

MANPOWER PLANNING

JOB ANALYSIS

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6 MARKETING FEASIBILITY 61

4 P’S OF MARKETING

PRODUCT MIX

MARKET RESEARCH

GRAPHICAL PRESENTATION

7 FINANTIAL FEASIBILITY : 1 120

COST OF PROJECT

SOURCE OF FINANCE

DETAILS OF EXPENSES

WORKING CAPITAL STATEMENT

8 FINANCIAL FEASIBILITY : 2 126

COST SHEET

PROFIT AND LOSS ACCOUNT

BALANCE SHEET

SCHEDULE FORMING PART OF BALANCE SHEET

CASH FLOW STATEMENT

NPV STATEMENT

PAY BACK STATEMENT

IRR

RATIO ANALYSIS

ASSUMPTION

9 CONCLUSION 153

10 WEBOGRAPHY 154

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ACKNOWLEDGEMENT

“Ignorance is bliss”

This phrase says that sometimes people enjoy overlooking something. An

acknowledgement is that which is most of the time overlooked by the

readers of the project, i.e. an acknowledgement is something very

important. Acknowledgement reflects or expresses the thankfulness towards

those people who helped us in the project.

“Perception defers”

The above two golden words says that sometimes perception of a person

defers from the other. Similarly, the theoretical knowledge can be acquired

easily then practical knowledge, which is not possible without proper

guidance, motivation & inspiration provided by different persons. Hence our

project is the diligence of many persons.

At first, we are thankful to DR.SARLA ACHUTHAN, the director of

K.S.SCHOOL OF BUSINESS MANAGEMENT who gave us such a wonderful

opportunity to explore our potential.

We also express our deep sense of gratitude to our esteemed faculties for

their invaluable guidance. We are also thankful to Dr. ANAJALI GOKHRU, our

group guide, for giving such a precious guidance for making the project.

We are also thankful to Mr. Rohit Mehta, MD of Madhur Dairy and Mr. Haresh

Patel, the owner of Ashrfi for helping us in various aspects of project. Once

again, our group is thankful to all of them whose valuable contribution

completes the project of feasibility report.

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PREFACE

“Experience is the best teacher”. This proves plays a guiding role in

including industrial visit as a part of the curriculum of MBA program of

GUJARAT UNIVERSITY. This visit and consequent report on it have allowed

the students to get exposure to real business environment.

Only theory knowledge does not impart complete education practical

exposure must accompany a theoretical knowledge to add meeting to

education.

To fulfill this objective industrial visit has been integral part of MBA

programmed. Such practical training develops awareness in the

management regarding the difficulties and challenges of the business world.

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FEASIBILITY REPORT

A feasibility study is defined as “an evaluation or analysis of the

potential impact of a proposed project or program”. A feasibility study is

conducted to assist decision makes in determining whether or not to impact

a particular project or program. The feasibility study is based on extensive

research on both the current practice and the proposed project or program.

It is presented to senior management.

A good feasibility study is more than just a set of financial

projections done properly. It becomes the market driven strategic plan that

is the road map for all subsequent decisions. As much as answering the

question “Is a project feasible?” A good study also addressed the question of

what is most feasible. And what should all its attributes be to assure

maximum success.

By feasible we mean that we venture must be practically possible

with respect to the following aspects.

(1)Technical Feasibility:-

The process of assessing the development organization‟s ability to

constrict a proposed system. The technical recourses capable of meeting the

needs of a proposed system can be required or developed by an organization

in the required time.

(2) Market Feasibility:-

It is to determine the suitability of the property for profitable

development and to define optimal products and amenities in accordance

with projected market demand and to project sales absorption and annual

revenues from development of this property. Just producing a product is not

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the ultimate end but rather a beginning .It must be readily accepted by

customer and market.

(3) Financial Feasibility:-

It involves a market study or demand analysis to help determine and

support assumption regarding anticipated revenues. This helps company

management decide whether or not to commit additional recourses or

borrow funds to finance a venture. It assures potential leaders and inventors

that there is a fair return on capital invested by them.

(4) Social Feasibility:-

It should not only be viable from the above mentioned angles but it

must also be such that it does not harm the society.

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SELECTION OF PROJECT

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SELECTION OF PROJECT

Each and every individual, firm, industry and nation wants to be ahead

adequate and amiable labor force, paper transportation and other

infrastructural facilities along with the line help the business unit to bloom.

Project report on the feasibility on ice-cream was allotted by the

collage authority as a part of practical study curriculum to group “U”. We

group member performed various activities as per guidelines provided in the

pamphlet of Gujarat university. We did market research about the ice-cream

in the various areas of Ahmadabad and Gandhinagar for getting in depth

knowledge and to get the clear ideas of activity relating to project we visited

the production unit Situated at Gandhinagar in Madhur Diary and at Vasna in

Ashrfi .

The Indian dairy industry is poised for dramatic growth in the coming

decades. The population growth, unorganized income growth, high income of

demand and changes in food habits that fielded the increase in milk

consumption are expected to continue well into the new millennium.

Reasons for the selection of the product

Now days, we are able to witness certain changes in the behavior of

mass population regarding their eating habits, especially ice-cream. They are

becoming more and crazier for ice-cream parlors are also mushrooming at

every noole and corner, which indicate the over increasing demand for ice-

cream.

In our country summer season is too long compared to other season

and people like to refer cool things like ice-cream, cold drinks, milk shake,

fruit juices, etc. so, about 82 % people like to eat ice-cream.

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Ahmadabad has unique destination having the highest per capital

consumption ice-cream only in summer. But they consume equally in winter

and monsoon also. Above all it has become a trend that every function it a

party or marriage is incomplete without ice-cream so to towards different

brands and flavors of ice-cream. We have selected this topic for our research

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PROJECT AT GLANCE

Name of the unit: DELICIOUS

Constitution: Partnership Firm

Status of Industry: Manufacturing

Date of incorporation: 1’st April, 2010

Project: Ice cream Manufacturing

Cost of project: Rs.1, 11, 72,385.32

Logo:

Tag line: “You name it, we make it.”

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HISTORY OF ICE- CREAM

Once upon time hundreds of years ago, Charles one of England hosted

a sumptuous state banquet for many of his friends and family. The meal,

consisting of many delicacies of the day, had been simply superb, but the

“cup-de-grace” was yet to come. After much preparations king‟s French chef

had concocted with closed and resembled fresh fallen show but was much

creamier and sweeter than any other after dinner decent. The king rewarded

his chief for his recipe to keep this secret of making such ice-cream. But that

chef could not keep that secret of making such ice-cream but that chef could

not keep that secret for long and it was spread out and ice-cream was born.

In 1983, cookies and cream made with real Oreo cookies became an instant

hit climbing to no five on the list of selling ice-cream flavors. It also holds

the distinction of being the fastest growing new flavor in the history of the

Ice-cream Industry.

In 1991 another flavor phenomenon was created chocolate chip cookie

dough ice-cream, which combines the best part of the chocolate chip cookie.

Thus ice-cream become very popular in our over the world the

consumption market of ice-cream is growing day to day. The first

commercial ice-cream plant was established in Baltimore in 1851 by Jacob

Fuss ell.

The first ice-cream cone was made on September 22; 1896.He was

granted a patent for his special mold in December 1903.In 1904 the wattle

ice cream cone was introduced at the st.louis world‟s fair when a waffle

concessionaire started rolling waffle into the shape of a cone for the benefit

of ice-cream vender who occupied on adjoining both.

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The first frozen dessert is credited to Emperor Nero of Rome. It was a

mixture of show (which he sent his slaves into the mountains to retrieve)

and nectar, fruit pulp and honey.

During the stuffy Victorian period, drinking soda water was

considered improver so sone towns banned its sale on Sundays. An

enterprising druggist in Evanston, Illinois, reportedly concocted a legal

Sunday alternative containing ice-cream and syrup but no soda. To show

respect for the Sabbath he later changed the spelling to “sundae”.

The first ice-cream parlor in America opened in Newyork city in 1776.

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HISTORY OF ICE CREAM INDUSTRY

Though India has a low per capita Ice-cream consumption of 300ml

per annum the trend is slowly changing due to a number of reasons.

In 2007 the global market of ice-cream was pegged of $61.6 billion

in terms of volume of 15 billion liters in terms if volume of this , the Asian-

pacific ice-cream market was worth $ 13 billion in terms of retail value &

5128 million liters in terms of volume coming to India ,the Indian ice cream

industry is currently estimation to be worth rs.2000 crores , growing at a

rate of approximately 12% Rs. CGM of Gujarat co-operative milk marketing

the makers of Amul explains “ The ice-cream market in India can be divided

into the branded market & grey market. The branded market at present is

100 million liters per annum valued at rs.800 crores The grey market

consists of small local players & cottage industry players. In 2008-09 in the

branded ice-cream market , Amul held the no.1 spot, with a market share of

38% , followed by quality walls at 1% , Vadilal at 12% & mother dairy at 8%

. Despite a decent growth rate, the ice-cream industry faces challenges of

low per capita income.

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DEED OF PARTNERSHIP

(Between ten partners to be executed on Rs 15 non judicial stamp

paper). This indenture of partnership is made on 1st April, 2010 between

Sr. No. Name Father’s Name Address

1 Dhrumit Girishbhai Shah Girishbhai Shah 15, Santa Appartment,

Vasna , Ahmadabad.

2 Chintan Jatinkumar Shah Jatinkumar Shah 3362. Revadasni Pole,

Shahpur, Khanchi, Ahmadabad.

3 Vinay Dasharathbhai Navlakha Dasharathbhai

Navlakha

35/1155, Vrajnagari,

Nr. Sachin Tower, Satellite,

Ahmadabad.

4 Kajal Devjibhai Bhalsod Devjibhai Bhalsod 3, Laxmi Nagar, Shivram Society,

Sabarmati, Ahmadabad.

5 Heena Dilipkumar Modi Dilipkumar Modi 1826/1, Bhurabhai Nu Dehlu,

Dariapur, Ahmadabad.

6 Krishna Arjunbhai Bharatiya Arjunbhai

Bharatiya

2, Gulbaninagar, Nemrajul Society,

Ahmadabad.

7 Nirali Kalidas Vaishnav Kalidas Vaishnav 26/B, Row-House, Harinagar,

Vavol, Gandhinagar.

8 Radha Raghurajsingh

Chudasama

Raghurajsingh

Chudasama

Sec-B-C, Plot No. 1027/2,

Gandhinagar.

9 Yogita Mansukhbhai Borad Mansukhbhai

Borad

27/2, Tenement, Kirti-Dham,

Vavol, Gandhinagar.

10 Nilam Danjibhai Rathod Danjibhai rathod 201, Ashutosh app. Bhulabhai

park, Ahmadabad

Whereas the parties have here to agree to commence business in

partnership and it is expedient to have a written instrument of partnership.

NATURE AND PLACE OF BUSINESS :

Whereas the parties here to have mutually agreed to carry on the

business of “manufacturing, processing, preservation and distribution of

all kind of ice cream in any form” at Naroda and to share the profit or loss

of the said business in partnership between themselves and they have

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with that object constituted themselves in to a firm of partners under the

name and style of Delicious Ice-cream.

DURATION OF FIRM :

The duration of the firm shall be Partnership at Will.

CAPITAL CONTRIBUTED BY PARTENERS :

The capital of the firm for the time being is fixed at Rs 90,00,000

(Rupees Ninety Lacs only) which has been contributed equally by

partners i.e. Rs. 9,00,000 (Rupees Nine Lacs) by Each Partner.

Provided that the partners may by mutual agreement increase or

decrease the capital and their respective contribution there to. The

partners by mutual consent may raise capital by way of loan if

considered expedient.

PROFIT/LOSS SHARING RATIO :

The partners shall distribute the net profit and bear the losses in

equal ratios.

INTEREST/REMUNERATION TO PARTNERS :

All the partners are working and may be allowed interest on capital

at maximum rate of 12% per annum and salary as maximum

permissible under section 40(b) of the income tax act.

WITHDRAWAL :

The partners shall be entitled to withdraw out of net profit money

not exceed Rs 50,000, in each month adjustable against the

account of the respective partners at the time of annual accounting.

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BOOKS OF ACCOUNT :

The firm shall maintain in the ordinary course of business a

true and current account of all its incoming and outgoing and

also its assets and liabilities of all account which shall be

ordinarily be kept at the firms place of business.

Immediately after each 31st march of every year, the partners

shall take an account and valuation of the effect, credit and

liabilities of partnership. Such accounts and valuation shall

after mutual examination be drawn up in duplicate and signed

by the partners, we shall each retain of copy. The entries in

such signed accounts shall be final and binding between the

parties. The profit or loss as a case may be shall be divided as

aforesaid, after the signing of such account.

APPOINTMENT OF EMPLOYEE :

No clerk or servant shall be employed or dismissed without the

consent of all the partners.

AUTHORITY OF PARTNERS :

The authority of the partners individually shall be limited to the

following.

(a) No partner shall individually purchase goods for partnership

without consulting the other and obtaining his consent for

purchase of the value exceeding Rs.100000.

(b) No partners shall singly bind the partnership by taking any loan

or raising any money whether with or without security to the

extent of more than Rs.200000.

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ADMISSION OF PARTNER :

The partnership shall be deemed to be continuing on the admission

of a fresh partner or partners, provided the admission is on the

terms herein laid down and is approved by all the partners.

DISSOLUTION :

Every partner shall be entitled to dissolve the partnership in the

event of the other committing breach of the conditions herein

covenanted. The partnership may be dissolved by a notice in

writing sent by registered post to the address herein given or

such as may be registers from time to time with the registrar of

firms. On the dissolution of firm under this clause the expelled

partners shall not be liable for any loss incurred as from the date

of dissolution. But no profit or loss shall be paid or become

payable except at the time of annual accounting.

DISPUTE BETWEEN PARTNERS :

If at any time any dispute ,doubt or question shall arise between

the partners, or their representatives either on the construction of

these presents or respecting the accounts, transaction, profit or

losses of the business or otherwise in relation to the partnership

then every such dispute of the par, doubt or question shall be

referred to arbitrators chosen by each partners and the

representative of their umpire to be appointed in the mode and

consequence thereof conform to be provisions in that behalf

contained and conciliation Act, 1996 or any statutory modification

thereof.

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IN WITNESSES WHEREOF the said Dhrumit, Chintan, Vinay, Kajal,

Heena, Krishna, Nirali, Radha, Yogita and Nilam here to at Ahmedabad

signed the day and the year first mentioned above.

Witness: Signature of Partners:

Hardik Desai Dhrumit

Practicing Chartered Accountant, Chintan

Membership No. 3852 Vinay

Sign: Kajal

Heena

Krishna

Dhaval Gandhi Nirali

Practicing Company Secretary, Radha

Membership No. 3852 Yogita

Nilam

Sign:

LICENCE REQUIRED

Labour registration certificate

Small scale industry license

Income tax registration number

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EVALUATION OF PROJECT

Business environment analysis

Since 1961 the industry has grown rapidly and tremendously research

has shown that ice-cream product are stable in the environment during use

when they are properly dispose of ice-cream are rapidly handled by

municipal west handling process length or incineration.

Managers always have to perform their function in the organization.

The system approaches of managing suggest that an organization being a

sun system of boarders. Societal system has to work within the framework

provided by the society and in the various constituents. This constitutions

are combined to constitute environment for the given organization

environment includes all the conditions, circumstances and influence

surrounding and total organization or any of its part environment can be

defined as “environment consist of atoms and molecules, agglomeration of

things in mation, alive of man and emotions of physical and social low, social

ideas, norms of actions of force and resistance. There number is infinitive

and they are always present they are always changing.”

There are many forces in environment which influents the working of

the organization. There forces may be classifying as economy legal, political,

technological culture, etc. There forces have an important effect in

determining the resources available for the inputs. The most appropriate

organization process and the acceptability of organizational output. The

organizational environment can broadly classify mainly into categories;

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EXTERNAL ENVIRONMENT

External environment consists of those factors which lie outside the

organization. This may be economical, geographical, technical, political, etc.

change in the organization social value and many changes in the economy,

changes in the recourses avaibility and change in the market place and so an

which of this external factor will have particular significant for a specific

organization depends on circumstances surrounding that business.

As then ice-cream is an industrial product, we can relate the various

environment factors in the following ways.

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Political environment :-

Frequent changes in the central and state government leads to

changes in the industrial policies. This environment composed of

regulation, government spending and patent protection even personal

thinking of particular political leader may affect adversely or favorable to

this service industry.

Economical environment :-

As far as economic aspect is concerned the entrepreneur of the ice-

cream in to industry has to fight the fought competition. However, they

are all together in two kind of sector i.e., organized sector and

unorganized sector .The companies like vadilal , Amul, etc can be

included in the organized sector and the local companies are included into

unorganized sector.

If we further clarify then, very interestingly, The Company can enjoy

the new market, as well as the replacement market also.

Social factors :-

Every organization would like to make itself so that its full capacity

utilizes and large market share can capture.

However, this is not possible and organization required forecasting its

sales at given price. This planning process as the whole exercise of the

planning is general to this only.

Technical environment :-

One of the most important forces shaping people‟s lives technology.

The latest technology can excel their growth. Every new technology is a

force for “creative destruction”. Moreover the innovating process always

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leads to the increase in the investment. Technological inventories are

introduced for higher productivity, lower cost and more revenues.

Technology refers to some total of knowledge providing ways to do

things. Organization should give constant consideration of the manner in

which innovation may affect their product and also to their internal

operation efficiency.

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SWOT ANALYSIS

STRENGTH:

Now a day‟s people spend more and more on eatables. As we

are offering good quality ice-cream at reasonable price out ice-

cream will definitely attract the customer. So our venture is less

risky.

Due to good machinery and advanced technology our production

capacity can be efficiently utilized which teach to lowering cost

peer unit. Thus, we can sell our product at lower price.

The labor required does not require much specify qualification

and skills.

As our unit will be located in the vicinity of GIDC infrastructure

facility will be easily available and moreover we will also get the

support from Govt.

As it is in GIDC area social duty will also be fulfills as the

polluted water would be first by common effluent plant and then

disposed.

Availability of labor is easy, cheap and is on contract basis also.

WEEKNESS:

Huge investment at time becomes weakness for the industry and

the project becomes financially infeasible.

Due to credit facilities given to the customers the lot of working

capital gets locked up.

Due to developing facility in this field it has to be upgraded

frequently, which involves high in sunk cost.

More marketing is required in this field as the main marketing

aspect is direct.

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OPORTUNITY:

As we are all together coming up with a new flavors of ice-cream we

may be able to provide the demand of customers.

There are other opportunities of export in the foreign market because

low cost labors and raw material are readily available in India.

Creates more channels, as the world is moving towards globalization.

THREATS:

Competition with cheap ice cream product.

Internal competition for resources.

Political instability.

Rising labor cost.

Increasing competition.

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INTRODUCTION

In this era of globalization, a technical feasibility study is an excellent

tool for trouble shooting and long term planning. In some regards it serves

as a flow chart of concern‟s proposed products and service and move

through your business to physically reach your market.

It answers the following questions:

- Is the project possible with current technology?

- How much technical risk is there?

- Does the technology exist at all?

Thus, it establishes that the product or service can operate in desired

manner.

The assessment of technical feasibility is based an outline design of

product requirement in terms of input, process, fields, programmers and

procedures and this can be quantified in order to estimate whether the new

product will perform adequately or not.

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RAW MATERIAL Ice Cream Manufacture

The basic steps in the manufacturing of ice cream are generally as follows:

blending of the mix ingredients

pasteurization

homogenization

aging the mix

freezing

packaging

hardening

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The red section represents the operations involving raw, unpasteurized

mix, the pale blue section represents the operations involving pasteurized

mix, and the dark blue section represents the operations involving frozen ice

cream.

Blending

First the are selected based on the desired from the formulation and

the ingredients chosen, then the ingredients are weighed and blended

together to produce what is known as the "ice cream mix". Blending requires

rapid agitation to incorporate powders, and often high speed blenders are

used.

Pasteurization

The mix is then. Pasteurization is the biological control point in the

system, designed for the destruction of pathogenic bacteria. In addition to

this very important function, pasteurization also reduces the number of

spoilage organisms such as psychrotrophs, and helps to hydrate some of the

components (proteins, stabilizers).

Pasteurization (Ontario regulations): 69° C/30 min. 80° C/25s

Both pasteurizers and methods are used.

Batch pasteurizers lead to more whey protein denaturation, which

some people feel gives a better body to the ice cream. In a batch

pasteurization system, blending of the proper ingredient amounts is done in

large jacketed vats equipped with some means of heating, usually steam or

hot water. The product is then heated in the vat to at least 69 C (155 F) and

held for 30 minutes to satisfy legal requirements for pasteurization,

necessary for the destruction of pathogenic bacteria. Various time

temperature combinations can be used. The heat treatment must be severe

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enough to ensure destruction of pathogens and to reduce the bacterial count

to a maximum of 100,000 per gram. Following pasteurization, the mix is

homogenized by means of high pressures and then is passed across some

type of heat exchanger (plate or double or triple tube) for the purpose of

cooling the mix to refrigerated temperatures (4 C). Batch tanks are usually

operated in tandem so that one is holding while the other is being prepared.

Automatic timers and valves ensure the proper holding time has been met.

Continuous pasteurization is usually performed in a high temperature short

time (HTST) heat exchanger following blending of ingredients in a large,

insulated feed tank. Some preheating, to 30 to 40 C, is necessary for

solubilization of the components. The HTST system is equipped with a

heating section, a cooling section, and a regeneration section. Cooling

sections of ice cream mix HTST presses are usually larger than milk HTST

presses. Due to the preheating of the mix, regeneration is lost and mix

entering the cooling section is still quite warm.

Homogenization

The mix is also which forms the fat emulsion by breaking down or

reducing the size of the fat globules found in milk or cream to less than 1 µ

m. Two stage homogenization is usually preferred for ice cream mix.

Clumping or clustering of the fat is reduced thereby producing a thinner,

more rapidly whipped mix. Melt-down is also improved. Homogenization

provides the following functions in ice cream manufacture:

Reduces size of fat globules

Increases surface area

Forms membrane

Makes possible the use of butter, frozen cream, etc.

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By helping to form the, it also has the following indirect effect:

makes a smoother ice cream

gives a greater apparent richness and palatability

better air stability

increases resistance to melting

Homogenization of the mix should take place at the pasteurizing

temperature. The high temperature produces more efficient breaking up of

the fat globules at any given pressure and also reduces fat clumping and the

tendency to thick, heavy bodied mixes. No one pressure can be

recommended that will give satisfactory results under all conditions. The

higher the fat and total solids in the mix, the lower the pressure should be.

If a two stage homogenizer is used, a pressure of 2000 - 2500 psi on the

first stage and 500 - 1000 psi on the second stage should be satisfactory

under most conditions. Two stage homogenization is usually preferred for ice

cream mix. Clumping or clustering of the fat is reduced thereby producing a

thinner, more rapidly whipped mix. Melt-down is also improved.

Ageing

The mix is then aged for at least four hours and usually overnight. This

allows time for the fat to cool down and crystallize, and for the proteins and

polysaccharides to fully hydrate. Aging provides the following functions:

Improves whipping qualities of mix and body and texture of ice cream

It does so by:

providing time for fat crystallization, so the fat can partially coalesce;

allowing time for full protein and stabilizer hydration and a resulting

slight viscosity increase;

Allowing time for membrane rearrangement and protein/emulsifier

interaction, as emulsifiers displace proteins from the fat globule

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surface, this allows for a reduction in stabilization of the fat globules

and enhanced partial coalescence.

Aging is performed in insulated or refrigerated storage tanks, silos,

etc. Mix temperature should be maintained as low as possible without

freezing, at or below 5 C. An aging time of overnight is likely to give best

results under average plant conditions. A "green" or unaged mix is usually

quickly detected at the freezer.

Following mix processing, the mix is drawn into a flavor tank where

any liquid, fruit purees, or colors are added. The mix then enters the

dynamic freezing process which both freezes a portion of the water and

whips air into the frozen mix. The "barrel" freezer is a scraped-surface,

tubular heat exchanger, which is jacketed with a boiling refrigerant such as

ammonia or Freon. Mix is pumped through this freezer and is drawn off the

other end in a matter of 30 seconds, (or 10 to 15 minutes in the case of

batch freezers) with about 50% of its water frozen. There are rotating blades

inside the barrel that keep the ice scraped off the surface of the

Freezing and Hardening

Freezer and also dashers inside the machine which help to whip the

mix and incorporate air.

Ice cream contains a considerable quantity of air, up to half of its

volume. This gives the product its characteristic lightness. Without air, ice

cream would be similar to a frozen ice cube. The air content is termed its

overrun, which can be calculated

As the ice cream is drawn with about half of its water frozen,

particulate matter such as fruits, nuts, candy, cookies, or whatever you like,

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is added to the semi-frozen slurry which has a consistency similar to soft-

serve ice cream. In fact, almost the only thing which differentiates hard

frozen ice cream from soft-serve, is the fact that soft serve is drawn into

cones at this point in the process rather than in to packages for subsequent

hardening.

Hardening

After the particulates have been added, the ice cream is packaged and

is placed into a blast freezer at -30° to -40° C where most of the remainder

of the water is frozen. Below about -25° C, ice cream is stable for indefinite

periods without danger of ice crystal growth; however, above this

temperature, ice crystal growth is possible and the rate of crystal growth is

dependent upon the temperature of storage. A primer will help you to fully

understand the freezing and recrystallization process. Hardening involves

static (still, quiescent) freezing of the packaged products in blast freezers.

Freezing rate must still be rapid, so freezing techniques involve low

temperature (-40oC) with either enhanced convection (freezing tunnels with

forced air fans) or enhanced conduction (plate freezers).

The rate of heat transfer in a freezing process is affected by the

temperature difference, the surface area exposed and the heat transfer

coefficient (Q=U A dT). Thus, the factors affecting hardening are those

affecting this rate of heat transfer:

Temperature of blast freezer - the colder the temperature, the faster

the hardening, the smoother the product.

Rapid circulation of air - increases convective heat transfer.

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Temperature of ice cream when placed in the hardening freezer - the

colder the ice cream at draws, the faster the hardening; - must get

through packaging operations fast.

Size of container - exposure of maximum surface area to cold air,

especially important to consider shrink wrapped bundles - they

become a much larger mass to freeze. Bundling should be done after

hardening.

Composition of ice cream - related to.

Method of stacking containers or bundles to allow air circulation.

Circulation should not be impeded - there should be no 'dead air'

spaces (e.g., round vs. square packages).

Care of evaporator - freedom from frost - acts as insulator.

Package type, should not impede heat transfer - e.g., Styrofoam liner

or corrugated cardboard may protect against heat shock after

hardening, but reduces heat transfer during freezing so not feasible.

Ice cream from the dynamic freezing process (continuous freezer) can also

be transformed into an array of through a variety of filling and forming

machines, which have Ben identified on a separate page.

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TECHNICAL FEASIBILITY MACHINERY

PASTEURISER

Elegant look, Robust & Stardy design.

Extra rich hygienic construction & easy to clean.

All product contact parts made of S.S.304.

Water jacket construction for even heating.

Less fuel / power consumption due proper insulation for external tank.

Cost per unit is Rs. 400000

MODEL CAPACITY

(Liter /Bch)

DIMENSION

(W x D x H)

POWER SUPPLY

VOLT / Ph / Hz

INSTALLED POWER

(WATT)

PPG / 50 50 530 x 670 x 1185 415 / 3 /50 280

PPG / 100 100 615 x 775 x 1275 415 / 3 /50 380

PPG / 150 150 690 x 840 x 1300 415 / 3 /50 380

PPG / 200 200 760 x 860 x 1320 415 / 3 /50 560

PPG / 250 250 810 x 910 x 1400 415 / 3 /50 560

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HOMOGENIZER

Extremely compact Mechanical Design with superior finish.

To maintain a perfect hygienic condition, all parts direct contact

with Ice Cream mix made of either stainless steel or food Grade

Material.

Specially designed pressure valve which gives high performance

even at working time.

Diaphragm type pressure gauge to maintain perfect hygienic

condition.

Cost per unit is Rs. 350000.

MODEL CAPACITY

(Liter

/Bch)

DIMENSION

(W x D x H)

POWER SUPPLY

VOLT / Ph / Hz

INSTALLED POWER

(WATT)

PPH / 75 75 500 x 560 x 850 415 / 3 /50 1500

PPH / 150 150 520 x 650 x 950 415 / 3 /50 2250

PPH / 250 250 570 x 750 x 1000 415 / 3 /50 3000

PPH / 500 500 690 x 930 x 1140 415 / 3 /50 5625

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AGEING VAT

Extremely compact Mechanical Design

Rectangular Mix tank for proper mixing of Ice Cream Mix.

All product contact parts made of S.S.304 & Castors for easy

movements.

Glycol jacketed construction & effective stirrer gives even

cooling also maintains temperature on power failure. (selected

Models)

Less power consumption due to efficient refrigeration system

and PUF insulation.

Bottom drive stirrer with easily removable for complete cleaning.

Cost per unit is Rs. 900000

MODEL CAPACITY

(Liter /Bch)

DIMENSION

(W x D x H)

POWER SUPPLY

VOLT / Ph / Hz

INSTALLED POWER

(WATT)

PAV / 50 50 530 x 775 x 980 230 / 1 / 50 1260

PAV / 100 100 625 x 1230 x 1010 230 / 1 / 50 1320

PAV / 150 150 760 x 1045 x 1240 230 / 1 / 50 1820

PAV / 200 200 790 x 1075 x 1390 415 / 3 / 50 2380

PAV / 250 250 830 x 1195 x 1390 415 / 3 / 50 2880

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BATCH FREEZER

·]

Robust & elegant aesthetically Design.

All product contact parts made of S.S 304 or Food Grade

Material.

Specially designed of Beater & efficient refrigeration system

Resulting in high product output with low power consumption.

Extremely Compact Mechanical Design.

To maintain perfect hygienic condition oil less air compressor is

used to insert air in Ice Cream.

Cost Per unit Rs.200000.

MODEL CAPACITY (Liter /Bch)

DIMENSION (W x D x H)

POWER SUPPLY VOLT / Ph / Hz

INSTALLED POWER (WATT)

PBF / 10 10 610 x 980 x 1430 415 / 3 /50 3200

PBF / 20 20 610 x 1245 x 1430 415 / 3 /50 3800

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CONTINUOUS ICE CREAM FREEZER

All product contact parts made of S.S 304.

Completely automatic hands free continuous production machine with

consistent product quality.

Very easy to clean & assemble parts after cleaning

Very easy & few setting points for various quality production with

more safely control valve.

Low power consumption due to efficient refrigeration system &

cylinder, beater design.

Cost Per unit is Rs. 30, 00,000.

MODEL CAPACITY (Liter /Bch)

DIMENSION (W x D x H)

POWER SUPPLY VOLT / Ph / Hz

INSTALLED POWER (WATT)

PCF / 80 80 755 x 1390 x 1295

415 / 3 /50 5000

PCF / 150 150 600 x 1100 x 1400

415 / 3 /50 7000

PCF / 300 300 630 x 1260 x 1460

415 / 3 /50 9000

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CANDY PLANT

Robust design for continuous production outer & inner made a S.S.

304

Latest technology for continuous &

positive heat transfer hence fast production.

Low power consumption due to efficient refrigeration system & PUF

Insulation.

Electronic temperature controller for consistent control.

Compact to superior finish with stainless steel construction.

Cost per unit is Rs. 80,000.

MODEL CAPACITY

(Ltr /Bch)

DIMENSION

(W x D x H)

POWER SUPPLY

VOLT / Ph / Hz

INSTALLED POWER

(WATT)

PCP / 5 500 620 x 1350 x 990 415 / 3 /50 3500

PCP / 10 1000 620 x 2150 x 990 415 / 3 /50 6000

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HARDENING TUNNEL

Specially designed arrangement to hard candy & Ice Cream in very

short time.

Robust & Elegant aesthetically design.

Efficient refrigerated system & chambers maintain a temperature even

at working time.

Automatically control of temperature Defrost System by specially

designed programmable temperature Controller.

High density PUF Insulation with outer & Inner covers in S.S. 304

MODEL CAPACITY

(Later /Bch)

DIMENSION

(W x D x H)

POWER SUPPLY

VOLT / Ph / Hz

INSTALLED POWER

(WATT)

PHT / 4 225 x 250 x 1650 850 x 1750 x 2300 415 / 3 /50 3000

PHT / 8 225 x 250 x 2640 850 x 2740 x 2300 415 / 3 /50 6000

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PLANT LAYOUT

(a) Pasteurizer

(b) Homogenizer

(c) Batch freezer

(d) Continuous Ice cream freezer

(e) Candy plant

(f) Hardening Tunnel

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ADDRESS

PLOTNO-4207,

PHASE-IV,

VATVA,

GIDC,

BEHIND NEW NIRMA,

AHMADABAD.

The location of the plant is very important aspect in economic analysis of

any project as it plays a vital role in a continuing life of the business as in

future the firm has to leverage the advantages while operating with location

of as biggest constrains. Location of a plant or industry means a specifics

site is the region where the business unit is to be started. For selecting

location all the pertinent factors influencing the location have to be

considered and weighted out carefully.

We required 800 sq.feet lands for our plant

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LOCATION ANALYSIS

Key factor for any firm is setting up an industry and designing its

convenient location of the unit should be such that it give the maximum

benefit for the life time because its not advisable to shift the whole unit after

some year giving lame excuse of inappropriate condition. So to locate

business unit after deep study to facilitate acquisition of best raw material ,

cheap labor and basic amenities at the minimum cost

Criteria for selection of location

1. Cost of production :-

As our location is near to the market service area, the cost of

distribution will be lower.

2. Transportation facility :-

The plant of unit is located in naroda GIDC. The truck and

tempo owner of transportation facility of raw material and finished

goods from this location to any part of Gujarat at cheaper rate.

3. Competitors :-

We have many direct competitors still there many

opportunity for us to expand our business.

4. Utility and facilities :-

Water :-

Water our fir has taken water pipe line from GIDC itself

and it is sufficient for our firm and water supply is

unlimited.

Electricity :-

Electricity also provides by TORRENT power and

electricity supplied at rs. 4.5 per kHz.

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Communication :-

Communication facility is prima fascias in today‟s

competitive world. the total cost of telephone lines would

be rs.3000.

Material storage system:-

There will be a separate space for storing raw material

and finished goods. we have appointed a store keeper to

keep a watch on raw material and finished goods.

5. Labour supply:-

Labour is easily available both skilled and unskilled in this

area.

6. Government policy

Real estate excise duty and government taxes are

assessed as per rules and regulation. Attitude of local residence as it

is declared by Gujarat government that industrial area is far from

residential area so question of opposition by local residence do not

arise .

Detail of raw material:

Cream

Condensed milk

Butterfat

Sugar

Flavorings,

Federally approved additives.

Eggs are added for some flavorings, particularly French vanilla

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RAW MATERIAL SUPPLIER

GUJARAT GENERAL FOODCHEM PVT. LTD.

427, ARUN CHAMBERS, CHOKHA BAZAR, KALUPUR, Ahmadabad - 380002,

Gujarat, India

Phone:91-79-22130225/22136595

Fax:91-79-22172802

Key Personnel

Mr. Sadrubhai Karodia (Director)

Mobile : +919979892824

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ORGANIZATION CHART

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MEN POWER PLANNING

Capital, strategy and research and development don‟t always work and

when they don‟t work, what we can depend on is our human power. For any

industry manpower is considered as one of the most important aspect, which

plays vital role for its overall growth and development. So, it has been

rightly said that it is a man behind the machine that wins a war and not only

the machine. Hence, our organization is based on the same concept.

Thus, we are considering and implementing the concept that the

people are the prime source of the competitive advantage.

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JOB DESCRIPTION AND

JOB SPECIFICATION

Job description is the process by which an organization ensures that it

has the right number and kind of people at the right places at the right time,

capable of completing effectively and efficiently those tasks that will help the

organization to achieve its overall objective.

Job specification states the minimum acceptable qualification that the

employee must possess to perform the job successfully.

Job description and job specification of each employee mentioned in

organization chart is as follows:

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RECRUITMENT PROCESS

We are using some recruitment processes as following ….

1. Friend to friend:-

In this method we recruit people by preference of our

employees. It based on employees trust.

2. Applications :-

In this method we recruit candidate on the application basis by

selecting favorable Candidates.

3. Through Mail:-

In this process candidate can directly send job application

through E-mail to our HR department.

In additional we also use the internet sites like NAUKARI.COM,

MONSTER.COM etc. for finding favorable candidates for our company.

TRAINING PROCESS

In the training process we are using two methods.

1. In house :-

In which we are giving training to our employee on the running.

Work who already employed.

2. Out house :-

In this process training given to our new employees. Who are

newly recruited? We send them training agencies. Also fire training

given to them at our cost Rs.1500 per employees.

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EMPLOYEE WELFARE

(1) Medical allowances :-

Health insurance is given to our employees. Also we held health

check up for employees.

(2)Conveyance Allowance:-

Conveyance allowances are given to our employees to meet

transaction expenses incurred by him.

(3)Pension:-

We also provide pension to our employees.

(4)Travelling Allowances:-

Travelling allowances given to employee to meet tour expenses

incurred on transfer of employees.

(5) Gratuity:-

Lump-sum amount paid to employee when he retires after long

service. It is reward for his long service.

(6) Provident fund :-

Provident fund given to the employee at 12%

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JOB ANALYSIS

Job description

Job description is an organized , factual statement of duties and

responsibilities of a specific job. In brief, it should tell what is to be done ,

how it is going to be done. It is a standard of function , in that ; it defines

the appropriate and authorized content of a job.

Job specification

Job specification is a statement of the minimum acceptable human

qualities necessary to perform a job properly. It is standard of personal and

designates the qualities the qualities required for acceptable performance.

The details of the job description and specification for the

administrative persons are given below.

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HR manager

Job description

Job title HR manager

Reported to MD

Function To tactically handle the human resource tools and helps the firm attract talented people for

the required job.

Duties & responsibilities To maintain excellent professional relations with the educational institutions and

recruitment agencies.

Job specification :-

Job title HR manager

Education HRM

Experience 4-5 year

Mental ability Excellent communication skills and

leadership qualities.

Strong presentation abilities.

Maturity Should work with complete responsibilities.

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Marketing manager

Job description

Job title Marketing manager

Reported to Board of director

Function To make strategies for the market

To give guidance to the salesman

To study the market regularly

Duties & responsibilities To satisfy the customers

To create a god loyalty for the product

in the market.

To maintain the market of the product

Job specification:- Job title Marketing manager

Education MBA( marketing)

Experience Minimum five year

Mental ability To handle sales and promotion

activities.

Good decision making and

communication skills

Maturity Must be capable of handling all the matters

related with full responsibilities

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Finance manager

Job description

Job title Finance manager

Reported to General manager

Function Finance and accounts

Duties & responsibilities Candidate mast be very well versed in

dealing with banks And financial

institutions.

Candidate must be experienced with

arranging project finance for various

projects as well as Expansionist.

Candidate should be smart and articulate

with good communication and

presentation skills.

Job specification

Job title Finance manager

Education MBA (finance)

Experience 10-12yrs of total work experience in service

industry

5-7 years in the position of GM in a mid

sized/ large company BPO into finance &

accounting function.

Mental ability Should be hardworking and capable of

Understanding the numerical data easily.

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Supervisor

job description

Job title Supervisor

Reported to Production manager

Function To give instruction to the workers and to the workers and

to see whether they are working properly or not.

Duties & responsibilities To report the Technician about the work regularly.

Job specification

Job title Supervisor

Education Diploma in Electronics

Experience Minimum 3 years

Mental ability Should be good at interpersonal communication

and good temperament

Maturity Should be capable of training the workers along

proper channel motivating them.

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Accountant

Job description

Job title Accountant

Reported to Finance manager

Function To administer all the matters related to accounts

Duties &

responsibilities

To make all the books of accounts and to the

finance manager regularly

Job specification

Job title Accountant

Education M.con having good Knowledge about account.

Experience Minimum 5 years

Mental ability Should be hardworking an capable of

understanding the numerical data easily

Maturity Should take complete responsibilities of the work

given.

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PRODUCTION MANAGER

JOB DESCRIPTION

Job title Production Manager

Report to General Manager

Function To work in production department

Duties and

responsibility

To create a good loyalty for the product in the market

JOB SPECIFICATION

Job title Production Manager

Education B.sc

Experience 3 years

Mental ability Able to concentrate hard and numerical data and

have expert knowledge in the field of production

Maturity Must be capable of handling all the matter related to

production process.

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Worker

Job description

Job title Worker

Reported to Supervisor

Function To work in the production process

Duties &

responsibilities

To work honestly with his full capacity

Job specification

Job title Worker

Education SSC or HSC passed

Experience Not required

Mental ability Should be capable of understanding the working

of the machines

Maturity Should Work with complete responsibilities

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MARKETING FEASIBILITY

Introduction:-

The purpose of marketing feasibility study in to determine the

sustainability of the proposed product for profitable development and to

define optimal product quality in accordance with project market demand.

It includes a description of the industry, current market anticipated,

future market potential, competition, sales projects, potential buyers, etc

and collecting information about a potential market that can be used in

deciding how a new product or service should be designed, delivered, priced

and marketed.

Thus, it can provide accurate, timely, in depth information that will

help you make the best possible decisions, given the characteristics of your

likely customer base and competitors.

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4p’s of MARKETING

The marketing mix is the set of marketing tools that the firm uses

to pursue its marketing objectives in the target market. Here, all classify the

set of marketing tools into four broad groups that we called 4p‟s of

marketing.

1. Product

2. Price

3. Place

4. Promotion

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PRODUCT

Product is anything which is offered to the market for exchange or

consumption. Product can be in different form like service, physical product,

place, properties, ideas, event persons, organization, Information, etc. Our

product comes under the head of “Impulse goods”(goods are purchase

without planning).

Product level

In planning its marketing offering the marketers need to think

through five levels of products. Each level adds customer value.

1. Core benefit

2. Basic product

3. Expected product

4. Augmented product

5. Potential product

Each level adds more customer value and the constitute a

customer value hierarchy.

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1) Core benefit :-

The most fundamental level is core benefit. The service or

benefit. The service or benefit, the customer is really buying. The core

benefit of ice-cream is “FROZEN ICECREAM”

2) Basic product :-

At this level, the marketer has to convert the core benefit into a

basic product or generic product. The basic product is cup, candy,

cone, or family pack.

3) Expected product: -

At the third level, the marketer prepares an expected product,

asset of attributes and conditions buyers normally expect when they

purchase the product. The expected product of ice-cream is as under.

Various fruit flavors like mango, strawberry, pineapple, watermelon,

etc.

Good quality

Good packing (different pack size)

4) Augmented product :-

At the fourth level, the marketers prepare an augmented

product that exceeds customer expectations. In developed countries

brand competition take place at this level differentiation arises on the

basis of product augmentation. The augmented product is built up in

order to make it competitive and attractive. It offers the additional

benefit. In case of ice cream Augmented product is sugar free ice-

cream, vegetable ice-cream.

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5) Potential level :-

At the fifth level stands the potential product, which

encompasses all the possible augmentations and transformations the

product or offering might change undergo in the future. Here is where

companies search for new ways to satisfy customers and distinguish

their offer. Here, innovations play a very important role. Plain ice-

cream with different types like spicy ice cream.

Product mix :-

Product mix is a set of all the products and items that seller

offer for sells. Product mix is consisted of width, length, line, depth,

and consistency.

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A product mix related to Ice-cream is as follows.

1. Product line –

Product line refers to always particular company. In our ice-

cream product line is ice-cream.

2. Product width –

It refers to how many product line the company carries i.e.

quantity of product. In our ice-cream product width is one (1)

3. Product length –

It refers to the total numbers of items in the product mix. In

length, we ignore the product sizes and consider the product

verities. In our product ice-cream product length is 23. i.e.

Rajbhog, vanilla, kajudraksh, butter scotch, kesar pista, straw

berry sundae, mango sundae, blackcurrant sundae, chocolate

sundae, mangodoly, chocobar, raspberry dolly, minichocobar,

pineapples delight cone, chocolate drip cone, butterscotch cone,

prime kesar pista cone, vanilla, strawberry, butter scotch,

kajudraksh, choc chips and mango.

4. 4. Product depth

It refers to how many varities are offered of each product in

line.

I.e. cup :- (2*5)+(1*4)=10+4 = 14

Candy :- (1*4) =4

Cone: - (1*4) =4

Family pack (2*6) =12

34

5. Product consistency –

It refers to how closely relate the various product lines

are in end use, production requirements, distribution channel

and some other way.

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PRICE

“Price is an important variable of the marketing mix. In response of

product customers are charged something that is nothing but price.”

Price planning is one of the most overlooked areas in industrial

marketing. The pricing decision is at the core of every business plan and

impacts directly on the critical components of a company‟s marketing

strategy.

PRICING POLICY

Our main objectives are

1. Survival

It‟s our major objective because we would face intense

competition; this is short term objective, in long run. We must learn

add rules to our product.

2. Maximization of market share

Our long objective is to become a role-player in this market. We

will charge lesser price than our competitors.

3. Analyzing competitor prices

As we are new in the market, it is not feasible to set higher price

than our competitor prices as sometime customer shift to competitor‟s

product due it price factor and therefore we priced our product

somewhere near the price of competitors.

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PRICE LIST OF ICE-CREAMS

Cup Big cup (Rs) Small cup (Rs)

Raj Bhog 20 10

Venilla 10 5

Kaju Draksh 15 8

Butter Scotch 15 10

Kesar Pista 20 10

Sundae cup Rs

Strawberry Sundae 12

Mango Sundae 10

Black current Sundae 12

Chocolate Sundae 15

Candy Rs

Mango dolly 10

Chocó bar 10

Raspberry dolly 10

Mini chocobar 5

Cone Rs

Pineapple delight cone 15

Chocolate drip cone 18

Butter scotch cone 12

Prime Kesar Pista cone 20

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Family Pack 750 ml. 1 liter.

Strawberry 110 140

Butter scotch 110 140

Kaju Draksh 85 120

Choco chips 120 160

Mango 80 110

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PLACE

It is one of the main features affecting the product as it is one of 4p‟s

of marketing. It covers the channels of publication house to customers

and also the area covered by the product like where the product is

sold. It also covers where and how the company store its stocks like

information of warehouses.

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Distribution channel :-

International marketers face many additional complexities in

designing their channels. Each country has its own unique distribution

system can very widely from country. Thus, global marketers must

usually adopt their channel strategies to the existing structures within

each country. In some markets the distribution system is complex and

hard to penetrate, consisting of many layers and large numbers of

intermediaries. Our main depot in Ahmadabad we sell our product in

Ahmadabad as wee as nearby Ahmadabad

Criteria of selecting agent :-

The agent should have sound knowledge of the product in depth.

He should have more contacts and more communication skills.

Agent should be experienced in this market and he should have

his name in the market as a potential tool for selling the product.

The agent will be appointed on a contractual basis of one year

and commission on his total sales will be given to them.

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PROMOTION

“promotion refers to the activities designed by the

organization stimulate quicker or greater purchase of services by

consumer.”

Promotion is a term taken from Latin word „promover‟ that means

moving from one to one and one to another.

In marketing promotion means all those tools through which the

marketer communicates its product to the consumer. It also includes

different means that he uses to increase the sale of his products.

Effective promotion can be done with the following five tools:

1) Advertisement.

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2) Sales promotion.

3) Public relation.

4) Personnel selling.

5) Direct marketing.

1) Advertisement

The word „advert‟ explains that

A-Active watch

D-develop relation

V- velocity

E-estimate

R-responsible

T-timely

According to the American marketing association ,

“advertising is services by an identified sponsor.”

ADVERTISING DETAILS:

NEWSPAPER IMAGE PAGE TOTAL AMOUNT

Gujarat Samachar Color Last 44007

Divya Bhsaker Color Last 22000 Times of India Color Last 66007

Total 132014

T.V Star plus 120000

HORDINGS 100000

Total 220000

TOTAL 652014

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5 M’s OF MARKETING

1. Mission

2. Money

3. Message

4. Media

5. Measurement

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1. Mission :-

Mission is consists of the central thing or objective

of advertising. It answers the questions “why we are doing

advertising?” every company has its own advertising objective

whether it is new or existence our advertising objective are:

To create consumer awareness.

To occupy a favorable image in the minds of target

market.

To attract the consumers.

To encourage immediate sale.

2. Money :-

It refers to how much amount to be spent

behind advertising. The cost of advertising is different

products. It is high for those products which are highly

substituble.

As far as our product is concerned following are the factor

to be considered while deciding the advertising budget.

I. Stage of product life cycle :-

The stage in product life cycle determines to extent to

which advertising is to be done. As our company is new

in the market, we have to provide a handsome amount

of money behind advertising.

II. Market share consumer base ;-

For a nearly established company to build a good

market share. It has to spend a large amount on

advertising.

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III. Competition and clutter :-

As our product has many competitors in the market, we

have to advertise heavily to be heard.

IV. Advertising frequency :-

It refers to no. of repetition needed to put across the

brand‟s message to have a consistent image in the

minds of target market.

V. Product substitutability :-

3. Message :-

The impact of message largely depends on how it is sold

than on what is said and hence the message generation plays

an important role in the company‟s image or reputation.

Message: Just one taste and you'll never go back

4. Media :-

It refers to the means through which advertiser

communicates the message to the product to the product

cosumers in orders to attract them and therby accomplishing

the objectives of advertising.

The following are the advertising media that we have used

for marketing our product:

1) Yellow pages :-

In yellow pages producers and manufacturers given regard,

give company‟s name, address and contact which helps the

potential consumers to communicate and to build relation.

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2) Industrial magazine :-

Industrial magazine is a magazine available with of the

industrial concerns in which the details of the products

manufactured by a particulars industry is shown.So,it is very

helpful to the consumers.

3) Website :-

As we are living in the world of interest, website is a good

source of communication.Anybody sitting at one hand can

have the information about the company manufacturing at

another hand.

4) Pamphlets :-

It refers to giving details about product company name and

address in brief in one or two pages and send it to potential

consumers.

5) Newspaper :-

It is one most popular form of advertising in india.Newspaper

are timely and flexible and it is possible to change and

advertise. We will advertise times of India, divyabhaskar,

Gujarat Samachar.

5. Measurement :-

It refers to impact of advertising non potential consumers.

As we are in direct selling, potential sales will definitely say or

reveal the effectiveness of advertising.

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MARKET RESEARCH

SOURCE OF DATA

PRIMARY DATA:

Primary data is the raw data we can get from producers,

consumers, dealers, suppliers etc. The primary source is costly but reliable.

We have used questionnaire method for gathering information.

SECONDARY DATA:

This kind of data can be found at libraries, university, and internet

or inside the company. Secondary data is also available in the media like

newspaper and magazines. It can also be purchased from firm specializing in

providing secondary data.

RESEARCH AAPROCH:

The following approach can be used

Exploratory approach

Focus group approach

Descriptive approach

Behavioral approach

Experience approach

We have used SURVEY research approach.

RESEARCH INSTRUMENT:

Questionnaire

Quantitative measure

Mechanical device

Psychological tool

We have used QUESTIONNAIRE in our project.

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SAMPLING PLAN:

Sampling unit: People of Ahmadabad.

Sampling size: 200 questionnaires.

Sampling procedure: Simple random sampling.

Research instrument: Questionnaire.

Collection method: Personal interview.

ADVERTISING DETAILS:

NEWSPAPER IMAGE PAGE TOTAL

AMOUNT

Gujarat Samachar Color Last 44007

Divya Bhsaker Color Last 22000

Times of India Color Last 66007

Total 132014

T.V

Star plus 120000

HORDINGS 100000

Total 220000

TOTAL 652014

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K.S.SCHOOL OF BUSINESS MANAGEMENT,

GUJRAT UNIVERSITY, AHMEDABAD – 9

MARKET SURVEY OF ICE-CREAM

(1) Name :- ____________________________________

(2) Gender :-

[ ] male [ ] female

(3) Age :-

[ ] up to 18 [ ] 18 to 30

[ ] 30 to 50 [ ] 50 and above

(4) Occupation :-

[ ] student [ ] business

[ ] service [ ] retired

[ ] house wife [ ] profession

[ ] other

(5) Income level (monthly) :-

[ ] up to 10,000 [ ] 10,000 to 25,000

[ ] 25,000 to 40,000 [ ] 40,000 and above

(6) Do you prefer ice-cream?

[ ] yes [ ] no

If „yes‟ continue with section „A‟ otherwise go to section „B‟.

SECTION - A

(1) Which of the following ice-cream brand do you prefer?

[ ] Amul [ ] Havmor

[ ] Vadilal [ ] Go-cool

[ ] Madhur [ ] Others

(2) How do you come to know about the ice-cream brand?

[ ] TV advertisement [ ] newspaper

[ ] magazine [ ] friends and relatives

[ ] others

(3) How would you rank to the ice-cream brand?

[ ] Amul [ ] Havmor

[ ] Vadilal [ ] Go-cool

[ ] Madhur [ ] others

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(4) Which aspects do you keep in mind while purchasing ice-cream?

[ ] price [ ] quality [ ] availability

[ ] taste [ ] brand name

[ ] advertisement [ ] variety

(5) Which flavor do you prefer most?

[ ] chocolate [ ] butter scotch

[ ] kaju badam [ ] vanilla

[ ] seasonal [ ] other specify __________________

(6) In which form do you prefer ice-cream?

[ ] candy [ ] cone

[ ] cup [ ] family pack

[ ] other

(7) From where you purchase ice-cream?

[ ] retail market [ ] ice-cream parlor

[ ] super market [ ] other location

(8) Price of ice-cream :-

[ ] satisfied [ ] highly satisfied

[ ] dis-satisfied [ ] average

(9) Do you agree that the price of the ice-cream is suitable for the quality?

[ ] yes [ ] no

[ ] not sure

(10) How frequently do you eat ice-cream?

[ ] daily [ ] weekly

[ ] monthly [ ] occasionally

(11) Are you calorie conscious?

[ ] yes [ ] no

[ ] not sure

(12) If our company introduce low calorie ice-cream, would you prefer

it?

[ ] yes [ ] no

[ ] not sure

(13) What do you expect in ice-cream?

[ ] calories [ ] vitamins

[ ] flavors [ ] other specify _________________

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SECTION – B

(1) Why do you not eat ice-cream?

[ ] health problem

[ ] price problem

[ ] don‟t like

[ ] other specify __________________

(2) Would you like to eat ice-cream in future?

[ ] yes [ ] no

[ ] not sure

Any suggestion: - _______________________________________

_____________________________________________________

_____THANK YOU_____

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GRAPHICAL PRESENTATION

1. CLASSIFICATION BY GENDER

GENDER MALE FEMALE TOTAL

TOTAL 102 98 200

In our survey most of the ice-cream consumers were both male and

female.51% out of 100% were male and 49% were female.

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2. CLASSIFICATION BY AGE AND GENDER

AGE/GENDER MALE FEMALE TOTAL

UP TO 18 22 22 44

18 TO 30 37 52 89

30 TO 50 28 17 45

50 AND ABOVE 15 7 22

TOTAL 102 98 200

Most of the ice-cream consumers were from age group of 18 to 30

years. 89 out of 200 were having age between 18 to 30 years whereas only

22 consumers were having age more than 50 years.

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3. COMPARISION BETWEEN GENDER & OCCUPATION

OCCUPATION/GENDER MALE FEMALE TOTAL

STUDENT 43 52 95

BUSINESS 18 2 20

SERVICE 20 10 30

RETIRED 8 3 11

HOUSE WIFE - 26 26

PROFESSION 12 3 15

OTHER 1 2 3

TOTAL 102 98 200

Majority of the students were eating more ice-cream that was

approximately 50% in comparison with other occupation.

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4. COMPARISION BETWEEN GENDER & INCOME LEVEL

INCOME/GENDER MALE FEMALE TOTAL

UP TO 10000 19 15 34

10000 TO 25000 42 48 90

25000 TO 40000 24 20 44

40000 AND ABOVE 17 15 32

TOTAL 102 98 200

All through it is clearly seen that majority of the ice cream eaters

are earning from 10,000 to 25,000 per month.

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5. COMPARISION BETWEEN GENDER & PEOPLE WHO PREFER ICE-

CREAM

YES/NO/GENDER MALE FEMALE TOTAL

YES 87 77 164

NO 15 21 36

TOTAL 102 98 200

Having surveyed randomly, almost 76% people are eating ice-cream

while only 24% people are not eating it because of certain reasons.

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6. ANALYSIS BASED ON GENDER & ICE-CREAM BRAND

BRAND/GENDER MALE FEMALE TOTAL

AMUL 26 34 60

VADILAL 19 14 33

MADHUR 5 7 12

HAVMOR 31 21 52

ASHARFI 6 1 7

TOTAL 87 77 164

60 people out of 164 people prefer to ice cream of Amul brand then

any other brand while only 6 people eat ice-cream of Asharfi.

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7. ANALYSIS BASED ON INCOME & ICE-CREAM BRANDS

BRAND/INCOME UP TO

10000

10000 TO

25000

25000 TO

40000

40000 &

ABOVE

TOTAL

AMUL 8 22 11 19 60

VADILAL 5 18 8 2 33

MADHUR 3 7 2 - 12

HAVMOR 5 11 20 16 52

ASHARFI 1 5 1 - 7

TOTAL 22 63 42 37 164

Havmor and Amul are more demandable in the income group of

10,000 and more than that.

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8. ANALYSIS BASED ON AGE & ICE-CREAM BRAND

BRAND/AGE UP TO 18 18 TO 30 30 TO 50 50 and

Above

TOTAL

AMUL 15 26 11 8 60

VADILAL 8 19 5 1 33

MADHUR 5 4 3 0 12

HAVMOR 13 21 12 6 52

ASHARFI 2 3 2 0 7

TOTAL 43 33 33 15 164

People in the age group of 18 to 30 are eating ice-cream of Amul and

Havmor as they are very brand conscious.

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9. ANALYSIS BASED ON GENDER & SOURCE OF ACKNOWLEDGEMENT

MALE FEMALE TOTAL

T.V 37 32 69

NEWSPAPER 22 11 33

MAGAZINE 0 0 0

FRIENDS 19 30 49

OTHERS 9 4 13

Majority of the people come to know about the ice-cream from T.V.

and their friends.

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10. ANALYSIS BASED ON SOURCE OF ADVERTISEMENT & ICE-

CREAM BRAND

T.V NEWSPAPER FRIENDS OTHER TOTAL

AMUL 36 16 7 1 60

VADILAL 15 6 11 1 33

MADHUR 0 0 10 2 12

HAVMOR 18 11 14 3 52

ASHARFI 0 0 7 0 7

TOTAL 69 33 49 13 164

People who are eating ice-cream of Amul and Havmor, they come to

know about brand from T.V. and Newspaper. As Ashrafi and Madhur are

not using T.V. and Newspaper as a tool of advertisement so their eaters

come to know from their friends.

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11. ANALYSIS BASED ON ICE-CREAM BRAND & ASPECT

BRAND PRICE QUALITY BRAND VARITY TOTAL

AMUL 5 15 29 11 60

VADILAL 7 20 3 3 33

MADHUR 9 1 0 2 12

HAVMOR 8 18 21 5 52

ASHARFI 5 0 0 2 7

TOTAL 34 54 53 23 164

Majority of the people who are eating ice-cream of Amul and Havmor,

they are eating that because its brand whereas consumers of Madhur and

Ashrafi are prefering because of its price.

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12. ANALYSIS BASED ON FLAVOUR & ICE-CREAM BRAND

BRAND CHOCOLATE BUTTER

SCOTCH

KAJU VENILA SEASONAL OTHER TOTAL

AMUL 11 23 13 2 4 7 60

VADILAL 10 15 5 3 0 0 33

MADHUR 0 2 6 0 0 4 12

HAVMOR 13 10 6 16 6 1 52

ASHARFI 0 3 2 0 0 2 7

TOTAL 34 53 32 21 10 14 164

In Amul, Vadilal and Havmor, chocolate and butterscotch flavors are

more popular in comparision with others flavours.

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13. ANALYSIS BASED ON BRAND & FORM OF ICE-CREAM

BRAND CANDY CONE CUP FAMILY

PACK

OTHER TOTAL

AMUL 8 15 30 6 1 60

VADILAL 6 14 7 4 2 33

MADHUR 8 0 4 0 0 12

HAVMOR 5 17 15 13 2 52

ASHARFI 3 0 4 0 0 7

TOTAL 30 46 60 23 5 164

In case of Amul and Vadilal, majority of cones and cups are more

demandable whereas majority of family packs of Havmor are preferable.

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14. ANALYSIS BASED ON BRAND & PLACE OF PURCHSAE

BRAND RETAIL.MKT ICECREAM

PARLOR

SUPER

MKT.

OTHER TOTAL

AMUL 20 31 6 3 60

VADILAL 12 11 1 9 33

MADHUR 3 2 0 7 12

HAVMOR 10 38 3 1 52

ASHARFI 2 0 0 5 7

TOTAL 47 82 10 25 164

Majority of the people ice cream consumer of Amul, Vadilal and

Havmor are purchasing it from retail shop and ice cream parlor. While

remaining people purchase from others.

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15. ANALYSIS BASED ON BRAND & PRICE

BRAND SATISHFIED HIGHLY

SATISHFIED

DIS

SATISHFIED

AVERAGE TOTAL

AMUL 44 7 2 7 60

VADIILAL 30 1 1 1 33

MADHUR 6 1 2 4 12

HAVMOR 49 2 0 1 52

ASHARFI 3 1 1 2 7

TOTAL 132 12 6 15 164

Majority of the ice cream consumers are satisfied with the currunt

prices of the ice-cream, only 6 out of 164 are dissatisfied with the prices.

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16. ANALYSIS BASED ON BRAND & PRICE SATISFACTION

BRAND YES NO NOT SURE TOTAL

AMUL 40 11 9 60

VADILAL 23 4 6 33

MADHUR 7 0 5 12

HAVMOR 30 14 8 52

ASHARFI 5 1 1 7

TOTAL 105 30 29 164

Majority of the people are satisfied with price that is 105 out of 164.

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17. ANALYSIS BASED ON CONSUMPTION FREQUANCY & BRAND

BRAND DAILY WEEKLY MONTHLY OCCASSIONALY TOTAL

AMUL 1 43 9 7 60

VADILAL 2 10 15 6 33

MADHUR 0 0 3 9 12

HAVMOR 2 39 7 4 52

ASHARFI 0 1 4 2 7

TOTAL 5 93 38 28 164

Majority of the people eat ice cream once in a week time. Only 5

people out of 164 people are eating ice cream daily.

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18. ANALYSIS BASED ON CONSUMPTION FRIQUANCY & AGE

UP TO

18

18 TO 30 30 TO 50 50 &

ABOVE

TOTAL

DAILY 1 4 0 0 5

WEEKLY 39 34 17 3 93

MONTHLY 0 22 9 7 38

OCCASSIONALY 3 13 7 5 28

OTHERS 0 0 0 0 0

TOTAL 43 73 33 15 164

Majority of the people eat ice cream once in a week time that is in the

age group from 18 to 30.

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19. ANALYSIS BASED ON CALORIE CONSCIOUS & GENDER


YES 5 41 46

NO 53 8 61

NOT SURE 29 28 57

TOTAL 87 77 164

Majority of the female are very calorie conscious that is 41

Out of 77 and male are not calorie conscious.

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20. ANALYSIS BASED ON GENDER & DEMAND FOR LOW CALORIE

ICE-CREAM


YES 4 35 39

NO 24 6 30

NOT SURE 59 36 95

TOTAL 87 77 164

Majority of the female are demanding less caloried ice cream because

of health problems. And almost half of the people are not sure about it.

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21. ANALYSIS BASED ON EXPECTATION & GENDER


CALORIES 1 19 20

VITAMINS 1 8 9

FLAVOURS 82 49 131

OTHERS 3 1 4

TOTAL 87 77 164

Majority of the people are expecting flavors than any other things

whereas female are more conscious about calorie as well as flavours.

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22. ANALYSIS BASED ON REASON FOR NOT EATING & GENDER

GENDER MALEW FEMALE TOTAL

HEALTH

PROBLEM

11 15 26

PRICE 1 0 1

DON‟T LIKE 3 6 9

OTHERS 0 0 0

TOTAL 15 21 36

Main reason behind the people not eating the ice cream is health

problems and very less people are not eating ice cream because of price and

they don‟t like.

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23. ANALYSIS BASED ON REASON & AGE GROUP

REASON UP TO18 18 TO 30 30 TO 50 50 &

ABOVE

TOTAL

HEALTH

PROBLEM

3 16 0 2 21

PRICE 1 2 2 1 6

DON‟T LIKE 2 6 1 0 9

OTHER 0 0 0 0 0

TOTAL 6 24 3 3 36

Main reason behind the people not eating the ice cream is health

problems and that is mainly in the age group of 18 to 30.

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24. ANALYSIS BASED ON GENDER & FUTURE DEMAND


YES 6 9 15

NO 4 4 8

NOT SURE 5 8 13

TOTAL 15 21 36

Majority of the people are willing to eat ice cream in future.

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K.S.SCHOOL OF BUSINESS MANAGEMENT,

GUJRAT UNIVERSITY, AHMEDABAD – 9

DELEAR SURVEY OF ICE-CREAM INDUSTRY

(1) Name:____________________________________

(2) Area :____________________________________

(3) Experience in this field:______________________

_________________________________________

(4) What kind of ice cream do you sell?

_________________________________________

(5) How many kg ice-creams do you sale in a year?

_________________________________________

(6) What types of promotional schemes attract you?

_________________________________________

(7) What kind of firm is yours?

[ ] Partnership [ ] Company

[ ] Proprietorship

(8) How do you manage to get funds?

[ ] Bank specify____________ [ ] own

[ ] Issue share

(9) What is your annual turn-over?

[ ] 1 to 25 Lakhs [ ] 25 to 50 Lakhs

[ ] 50 to 75 Lakhs [ ] 75 to 1 Crore

[ ] Above 1 Crore

(10) How much is your working capital?

_______________________________________

(11) How many workers are working for you?

_______________________________________

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(12) Who are your suppliers for raw-material?

_______________________________________

_______________________________________

(13) How many credit period you get?

_______________________________________

(14) From where did you buy machinery?

[ ] India [ ] Germany

[ ] China [ ] Any other specify ___________

(15) Have you ever found any complaints from your customers?

[ ] Yes [ ] No

If yes then, specify________________________

(16) How do you market yourself? How much it cost?

[ ] Advertisement in newspaper [ ] Advertisement in TV or radio

[ ] Word of mouth [ ] Any other

(17) What are the working hours?

_______________________________________

(18) What is your normal rate of wastage?

[ ] Up to 5% [ ] 5% to 10% [ ] Above 10%

(19) What is your profit margin approximately?

[ ] Up to 10% [ ] 10% to 25% [ ] 25% to 40%

[ ] 40% to 60% [ ] 60% and above

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DELEAR SURVEY OF ICE CREAM INDUSTRY

1. What kind of ice cream do you sell?

Particular No. of dealer

Havmor 3

Vadilal 3

Amul 2

Mix 2

Total 10

Majority of the dealers are selling ice-cream of Havmor and Vadilal.

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2. What types of promotional schemes attract you?


Festival Offer 2

Sunday Offer 1

Bulk offer 3

Home Delivery 4

Total 10

Most of the dealers are attracted by the home delivery scheme to

increase their sell of ice-cream.

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3. What Kind of firm is yours?


Proprietorship 3

Partnership 3

Company 4

Total 10

In our dealers survey we can found that most of dealers are company

organization.

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4. How do you manage to get funds?


Bank 4

Own 2

Issue of Shares 3

Relatives 1

Total 10

In our dealers survey, we came to know that most of the dealers get

funds from the bank.

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5. What is your annual turnover?


Below 25 lacs 5

25-50 lacs 2

50-75 lacs 2

75 lacs and

above 1

Total 10

Majority of the dealer‟s turnover is below 25lakhs.

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6. From where did you buy machinery?


India 3

China 4

Germany 3

others 0

Total 10

China is most popular for ice-cream machinery in the dealers because

of low cost.

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7. Have you ever found any complaints from your customers?


Yes 2

No 8

Total 10

From our dealers survey, dealers are getting very less complaints

because of their good service.

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8. How do you market your Products?


Advertise in News paper 3

Advertise in TV or Radio 4

Word of Mouth 1

Any other 2

Total 10

For marketing of ice cream, most of the dealers are using

advertisement in TV and Radio.

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9. What is your normal rate of wastage?


Up to 5% 4

5%-10% 4

10% and above 2

Total 10

Most of the waste of the dealers is up to 10%.

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10. What is your Profit margin approximately?


Up to 10% 2

10% to 25% 2

25% to 40% 4

Above 40% 2

Total 10

Majority of the dealers profit margin is from 25 to 40%.

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COST OF PROJECT

Particulars Amount

Land & Building 42,00,000

Plant & Machinery 97,84,000

Furniture 1,86,400

Vehicle 4,57,880

Total Cost 1,46,28,280

SOURCES OF FINANCE

Particulars Amount

Partner‟s Capital 90,00,000

Loan From IDBI Bank 54,45,198

Loan from relatives 1,83,082

Total 1,46,28,280

DETAILS OF EXPENSES

LAND AND BUILDING

Particulars Sq. Ft. Rate(including

Construction

Charges)

Total

Land and Building in Naroda 800 5,250 42,00,000

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FURNITURE & FIXTURE

Particulars Units Amt. Total

Computer 2 20,000 40,000

Printer 1 4,000 4,000

Telephone 3 1,000 3,000

Air Conditioner 2 17,000 34,000

Water Purifier 1 2,000 2,000

Tube light 40 125 5,000

Fans 12 1,200 14,400

Exhaust Fans 7 500 3,500

Chair 30 250 7,500

Sofa Set 3 15,000 45,000

Cup-Board 2 4,000 8,000

Table 4 5,000 20,000

Total - - 1,86,400

PLANT & MACHINERY

Particulars Units Amt. Total

Milk Testing Machine 1 7,50,000 7,50,000

Milk Tank 2 2,50,000 5,00,000

Pasteurizers 2 4,00,000 8,00,000

Packing Machine 3 4,00,000 12,00,000

Mix Tank 3 3,50,000 10,50,000

Freezer 1 2,00,000 2,00,000

Chiller 3 2,50,000 7,50,000

Cold Storage 1 30,00,000 30,00,000

Cone Machine 1 1,00,000 1,00,000

Candy Machine 1 80,000 80,000

Cup Filling Machine 1 85,000 85,000

Aging Volt 1 9,00,000 9,00,000

Label Machine 1 1,65,000 1,65,000

Label Diesel Generator 1 1,50,000 1,50,000

Plastic Carat 1 40,000 40,000

Installation Charges - - 50,000

Total - - 97,84,000

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OTHER ASSETS:

Particulars Units Amt.

Vehicle 1 4,57,880

Total 4,57,880

REPAIRS AND MAINTANANCE:

Year Amount Percentage Total

1 97,84,000 1% 97,840

2 83,16,400 1.3529% 1,12,516

3 70,68,940 1.83% 1,29,393

4 60,08,599 2.48% 1,48,802

5 51,07,309 3.335% 1,71,123

INSURANCE

Particulars Rate Amt. Year

1 2 3 4 5

Building

Plant & Machinery

Total 212,566 181,067 154,255 131,430 111,997

DEPRICIATION

Particulars Year

1 2 3 4 5

Plant & Machinery 9784000 8316400 7068940 6008599 5107309.15

Less: Depri. @ 15% 1467600 1247460 1060341 901289.85 766096.3725

Closing Balance 8316400 7068940 6008599 5107309.15 4341212.778

Furniture 186400 167760 150,984 135,886 122,297

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Less: Depri. @ 10% 18640 16776 15,098 13,589 12,230

Closing Balance 167760 150984 135,886 122,297 110,067

Building 200000 180000 162,000 145,800 131,220

Less: Depri. @ 10% 20000 18000 16,200 14,580 13,122

Closing Balance 180000 162000 145,800 131,220 118,098

Vehicle 457880 389198 330,818 281,196 239,016

Less: Depri. @ 15% 68682 58379.7 49,623 42,179 35,852

Closing Balance 389198 330818.3 281,196 239,016 203,164

Total Depri. 1,574,922 1,340,616 1,141,262 971,638 827,301

PRODUCTION CAPACITY:

Year Percentage

1 50%

2 60%

3 75%

4 90%

5 95%

FACTORY OVERHEAD:

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year

Salary to

Supervisor 84,000 92,400 102,480 113,400 134,400

Salary to

Gatekeeper 36,000 39,600 43,200 46,800 50,400

Salary to Sweeper 30,000 33,000 36,000 39,000 42,000

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Bonus 5,600 6,300 7,700 8,400 9,100

Power and Fuel 684,000 861,840 1,131,165 1,425,268 1,579,672

Repairs and

Maintenance 97,840 112,516 129,393 148,802 171,123

Insurance 212,566 181,067 154,255 131,430 111,997

On Plant &

Machinery 1,467,600 1,247,460 1,060,341 901,290 766,096

Total 2,405,040 2,393,116 2,510,279 2,682,960 2,752,791

Office & Administration Overhead:


Interest on Capital &

Salary to Partners 1230000 1355491 1701029 2052902 2412587

On Furniture &

Fixtures 18,640 16,776 15,098 13,589 12,230

ON BUILDING 20,000 18,000 16,200 14,580 13,122

On Vehicles 68,682 58,380 49,623 42,179 35,852

Int.on Loan

(Secured) 544,520 463,562 344,676 266,057 186,174

Stationery & Printing 8,420 9,009 9,640 10,315 11,037

Computer Expenses 10,215 10,726 11,262 11,825 12,416

Electricity (Office) 25,358 27,387 29,578 31,944 34,499

Telephone 6,541 6,672 6,805 6,941 7,080

Audit Fees 5,000 6,000 7,500 8,500 11,000

Misc. Expenses 7,000 8,250 9,370 10,280 11,360

Total Administrative

Expenses 1,944,376 1,980,252 2,200,781 2,469,112 2,747,358

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WORKING CAPITAL STATEMENT:


Raw Material 631,959 743,632 950,969 1,148,468 1,255,531

Work in

Progress 38,360 45,643 56,595 68,848 75,485

Finished Goods 639,721 745,605 901,444 1,080,727 1,175,352

Total Value of

Inventories 1,310,040 1,534,880 1,909,008 2,298,043 2,506,368

Sundry Debtors 720,154 1,003,799 1,369,070

Cash & Bank

Balances

40,257 35,044 40,268

Total Current

Assets 2,070,451 2,573,723 3,318,346 3,959,290 4,866,041

Less:

Sundry

Creditors For

Goods 386,000 486,360 638,348 804,318 891,453

Sundry

Creditors For

Expense 137,759 152,652 174,975 201,001 273,202

Total Current

Liabilities 523,759 639,012 813,323 1,005,319 1,164,654

Working

Capital 1,546,691 1,934,711 2,505,023 2,953,972 3,701,387

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Cost sheet

Capacity 50% 60% 75% 90% 95%

Particulars 2010-11 2011-12 2012-13 2013-14 2014-15

Consumption of Raw Material

Op. Stock of R.M. 0 89,077 112,237 147,311 185,612

Purchase of R.M. 4,632,000 5,836,320 7,660,170 9,651,814 10,697,430

Expnses related to Purchase

Carriage Inward 92,640 116,726 153,203 193,036 213,949

Transport Charges 231,600 291,816 383,009 482,591 534,872

Other Charges 46,320 58,363 76,602 96,518 106,974

Total Expenses 370,560 466,906 612,814 772,145 855,794

Less: Cl. Stock Of R.M. 631,959 743,632 950,969 1,148,468 1,255,531

Consumption of Raw Material 4,370,601 5,648,671 7,434,252 9,422,802 10,483,305

Direct Expenses

Direct Labour 225,000 288,000 384,000 459,000 540,000

Prime Cost 4,595,601 5,936,671 7,818,252 9,881,802 11,023,305

Factory Overhead

Salary to Supervisor 84,000 92,400 102,480 113,400 134,400

Salary to Gatekeeper 36,000 39,600 43,200 46,800 50,400

Salary to Sweeper 30,000 33,000 36,000 39,000 42,000

Bonus 5,600 6,300 7,700 8,400 9,100

Power and Fuel 684,000 861,840 1,131,165 1,425,268 1,579,672

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Repairs and Maintenance 97,840 112,516 129,393 148,802 171,123

Insurance 212,566 181,067 154,255 131,430 111,997

Depreciation

On Plant & Machinery 1,467,600 1,247,460 1,060,341 901,290 766,096

Total Depreciation 1,467,600 1,247,460 1,060,341 901,290 766,096

Factory Overhead 2,405,040 2,393,116 2,510,279 2,682,960 2,752,791

Total Factory Cost 7,000,641 8,329,787 10,328,531 12,564,762 13,776,096

Add : Op. Stock Work in Progress 38,360 45,643 56,595 68,848

Less: Cl. Stock of Work In

Progress 38,360 45,643 56,595 68,848 75,485

Cost of Production 6,962,281 8,322,504 10,317,579 12,552,509 13,769,459

Administrative Expenses

Interest on Capital & Salary to

Parteners 1230000 1355491 1701029 2052902 2412587

On Furniture & Fixtures 18,640 16,776 15,098 13,589 12,230

On Other assets 20,000 18,000 16,200 14,580 13,122

On Vehicles 68,682 58,380 49,623 42,179 35,852

Int.on Loan (Secured) 544,520 463,562 344,676 266,057 186,174



Electricity (Office) 25,358 27,387 29,578 31,944 34,499

Telephone 6,541 6,672 6,805 6,941 7,080

Audit Fees 5,000 6,000 7,500 8,500 11,000

Misc. Expenses 7,000 8,250 9,370 10,280 11,360

Total Administrative Expenses 1,944,376 1,980,252 2,200,781 2,469,112 2,747,358

Cost of Production of Finished

Goods 8,906,657 10,302,756 12,518,360 15,021,621 16,516,816

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Add : Op. Stock of Finished

Goods 0 639,721 745,605 901,444 1,080,727

Less : Cl. Stock of Finished

Goods 639,721 745,605 901,444 1,080,727 1,175,352

Cost of Production of Goods

Sold 8,266,936 10,196,872 12,362,521 14,842,338 16,422,191

Selling & Distribution Exp.

Packing Exp. 181,860 218,232 272,790 327,348 345,534

Carriage Outward 52,012 62,414 78,018 93,622 98,823

Cash Discount to Distributor

Advertisement 352,014 334,413 317,693 301,808 286,718

Total Selling & Distribution

Expenses 585,886 615,060 668,501 722,778 731,074

Total Cost 8,852,822 10,811,931 13,031,021 15,565,116 17,153,266

Profit / (Loss) -210,976 33,660 264,019 498,602 738,390

Sales 8,641,846 10,845,591 13,295,040 16,063,718 17,891,656

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PRODUCT WISE COST SHEET FOR 2010-11

Capacity 25 35 30 10

Particulars Candy cup family pack Cone Total


Op. Stock of R.M. 0

Purchase of R.M. 1158000 1621200 1389600 463200 4,632,000


Carriage Inward 23160 32424 27792 9264 92,640

Transport Charges 57900 81060 69480 23160 231,600

Other Charges 11580 16212 13896 4632 46,320

Total Expenses 92640 129696 111168 37056 370,560

Less: Cl. Stock Of R.M. 157989.75 221185.65 189587.7 63195.9 631,959

Consumption of Raw Material 1092650.25 1529710.35 1311180 437060.1 4,370,601

Direct Expenses

Direct Labour 56250 78750 67500 22500 225,000

Prime Cost 1148900.25 1608460.35 1378680 459560.1 4,595,601

Factory Overhead

Salary to Supervisor 21000 29400 25200 8400 84,000

Salary to Gatekeeper 9000 12600 10800 3600 36,000

Salary to Sweeper 7500 10500 9000 3000 30,000

Bonus 1400 1960 1680 560 5,600

Power and Fuel 171000 239400 205200 68400 684,000

Repairs and Maintenance 24460 34244 29352 9784 97,840

Insurance 53141.4 74397.96 63769.68 21256.56 212,566

Depreciation

On Plant & Machinery 366900 513660 440280 146760 1,467,600

Total Depreciation 366900 513660 440280 146760 1,467,600

Factory Overhead 601260 841764 721512 240504 2,405,040

Total Factory Cost 1750160.25 2450224.35 2100192 700064.1 7,000,641

Add : Op. Stock Work in Progress


Progress 9589.919178 13425.88685 11507.9 3835.968 38,360

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Cost of Production 1740570.331 2436798.463 2088684 696228.1 6,962,281



Parteners 307500 430500 369000 123000 1,230,000

On Furniture & Fixtures 4660 6524 5592 1864 18,640

ON BUILDING 5000 7000 6000 2000 20,000

On Vehicles 17170.5 24038.7 20604.6 6868.2 68,682

Int.on Loan (Secured) 136129.96 190581.944 163356 54451.98 544,520

Stationery & Printing 2105 2947 2526 842 8,420

Computer Expenses 2553.75 3575.25 3064.5 1021.5 10,215

Electricity (Office) 6339.5 8875.3 7607.4 2535.8 25,358

Telephone 1635.25 2289.35 1962.3 654.1 6,541

Audit Fees 1250 1750 1500 500 5,000

Misc. Expenses 1750 2450 2100 700 7,000

Total Administrative Expenses 486093.96 680531.544 583312.8 194437.6 1,944,376


Goods 2226664.291 3117330.007 2671997 890665.7 8,906,657

Add : Op. Stock of Finished Goods 0 0 0 0 0

Less : Cl. Stock of Finished Goods 159930.25 223902.35 191916.3 63972.1 639,721


Sold 2066734.041 2893427.657 2480081 826693.6 8,266,936


Packing Exp. 45465 63651 54558 18186 181,860

Carriage Outward 13003 18204.2 15603.6 5201.2 52,012


Advertisement 88003.5 123204.9 105604.2 35201.4 352,014


Expenses 146471.5 205060.1 175765.8 58588.6 585,886

Total Cost 2213205.541 3098487.757 2655847 885282.2 8,852,822

Profit / (Loss) -52744 -73841.6 -63292.8 -21097.6 -210,976

Sales 2160461.541 3024646.157 2592554 864184.6 8,641,846

Cost sheet for 2011-12

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Particulars Candy cup Fam.pack Cone Total


Op. Stock of R.M. 22269.23077 89,077

Purchase of R.M. 1459080 2042712 1750896 583632 5,836,320


Carriage Inward 29181.6 40854.24 35017.92 11672.64 116,726

Transport Charges 72954 102135.6 87544.8 29181.6 291,816

Other Charges 14590.8 20427.12 17508.96 5836.32 58,363

Total Expenses 116726.4 163416.96 140071.7 46690.56 466,906

Less: Cl. Stock Of R.M. 185908 260271.2 223089.6 74363.2 743,632


Direct Expenses

Direct Labour 72000 100800 86400 28800 288,000

Prime Cost 1484167.631 2077834.7 1781001 593667.1 5,936,671

Factory Overhead




Bonus 1575 2205 1890 630 6,300

Power and Fuel 215460 301644 258552 86184 861,840

Repairs and Maintenance 28129 39380.6 33754.8 11251.6 112,516

Insurance 45266.79 63373.506 54320.15 18106.72 181,067

Depreciation

On Plant & Machinery 311865 436611 374238 124746 1,247,460

Total Depreciation 311865 436611 374238 124746 1,247,460

Factory Overhead 598279 837590.6 717934.8 239311.6 2,393,116


Add : Op. Stock Work in

Progress 9589.919178 13425.887 11507.9 3835.968 38,360


Progress 11410.66647 15974.933 13692.8 4564.267 45,643


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Parteners 338872.75 474421.85 406647.3 135549.1 1,355,491

On Furniture & Fixtures 4194 5871.6 5032.8 1677.6 16,776

ON BUILDING 4500 6300 5400 1800 18,000

On Vehicles 14594.925 20432.895 17513.91 5837.97 58,380

Int.on Loan (Secured) 115890.466 162246.65 139068.6 46356.19 463,562

Stationery & Printing 2252.35 3153.29 2702.82 900.94 9,009



Telephone 1667.955 2335.137 2001.546 667.182 6,672

Audit Fees 1500 2100 1800 600 6,000

Misc. Expenses 2062.5 2887.5 2475 825 8,250



Goods 2575688.927 3605964.5 3090827 1030276 10,302,756


Goods 159930.3576 223902.5 191916.4 63972.14 639,721


Goods 186401.3481 260961.89 223681.6 74560.54 745,605


Sold 2549217.936 3568905.1 3059062 1019687 10,196,872


Packing Exp. 54558 76381.2 65469.6 21823.2 218,232

Carriage Outward 15603.6 21845.04 18724.32 6241.44 62,414


Advertisement 83603.325 117044.66 100324 33441.33 334,413


Expenses 153764.925 215270.9 184517.9 61505.97 615,060

Total Cost 2702982.861 3784176 3243579 1081193 10,811,931

Profit / (Loss) 8415 11781 10098 3366 33,660

Sales 2711397.861 3795957 3253677 1084559 10,845,591

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Op. Stock of R.M. 28059.2308 39282.9231 33671.077 11223.69 112,237

Purchase of R.M. 1915042.5 2681059.5 2298051 766017 7,660,170


Carriage Inward 38300.85 53621.19 45961.02 15320.34 153,203

Transport Charges 95752.125 134052.975 114902.55 38300.85 383,009

Other Charges 19150.425 26810.595 22980.51 7660.17 76,602

Total Expenses 153203.4 214484.76 183844.08 61281.36 612,814

Less: Cl. Stock Of R.M. 237742.25 332839.15 285290.7 95096.9 950,969

Consumption of Raw Material 1858562.88 2601988.03 2230275.5 743425.2 7,434,252

Direct Expenses

Direct Labour 96000 134400 115200 38400 384,000

Prime Cost 1954562.88 2736388.03 2345475.5 781825.2 7,818,252

Factory Overhead




Bonus 1925 2695 2310 770 7,700

Power and Fuel 282791.25 395907.75 339349.5 113116.5 1,131,165

Repairs and Maintenance 32348.35 45287.69 38818.02 12939.34 129,393

Insurance 38563.7115 53989.1961 46276.454 15425.48 154,255

Depreciation

On Plant & Machinery 265085.25 371119.35 318102.3 106034.1 1,060,341

Total Depreciation 265085.25 371119.35 318102.3 106034.1 1,060,341

Factory Overhead 627569.85 878597.79 753083.82 251027.9 2,510,279

Total Factory Cost 2582132.73 3614985.82 3098559.3 1032853 10,328,531

Add : Op. Stock Work in Progress 11410.6665 15974.9331 13692.8 4564.267 45,643


Progress 14148.6725 19808.1415 16978.407 5659.469 56,595

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Cost of Production 2579394.72 3611152.61 3095273.7 1031758 10,317,579



Parteners 425257.25 595360.15 510308.7 170102.9 1,701,029

On Furniture & Fixtures 3774.6 5284.44 4529.52 1509.84 15,098

ON BUILDING 4050 5670 4860 1620 16,200

On Vehicles 12405.6863 17367.9608 14886.824 4962.275 49,623





Telephone 1701.3141 2381.83974 2041.5769 680.5256 6,805

Audit Fees 1875 2625 2250 750 7,500

Misc. Expenses 2342.5 3279.5 2811 937 9,370



Goods 3129589.89 4381425.84 3755507.9 1251836 12,518,360

Add : Op. Stock of Finished Goods 186401.348 260961.887 223681.62 74560.54 745,605

Less : Cl. Stock of Finished Goods 225361.053 315505.474 270433.26 90144.42 901,444


Sold 3090630.18 4326882.26 3708756.2 1236252 12,362,521


Packing Exp. 68197.5 95476.5 81837 27279 272,790


Advertisement 79423.1588 111192.422 95307.791 31769.26 317,693


Expenses 167125.159 233975.222 200550.19 66850.06 668,501

Total Cost 3257755.34 4560857.48 3909306.4 1303102 13,031,021

Profit / (Loss) 66004.75 92406.65 79205.7 26401.9 264,019

Sales 3323760.09 4653264.13 3988512.1 1329504 13,295,040

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Op. Stock of R.M. 36827.74 51558.8365 44193.29 14731.096 147,311

Purchase of R.M. 2412953.5 3378134.9 2895544 965181.4 9,651,814


Carriage Inward 48259.07 67562.698 57910.88 19303.628 193,036


Other Charges 24129.535 33781.349 28955.44 9651.814 96,518

Total Expenses 193036.28 270250.792 231643.5 77214.512 772,145

Less: Cl. Stock Of R.M. 287117 401963.8 344540.4 114846.8 1,148,468


Direct Expenses

Direct Labour 114750 160650 137700 45900 459,000

Prime Cost 2470450.5 3458630.73 2964541 988180.21 9,881,802

Factory Overhead




Bonus 2100 2940 2520 840 8,400

Power and Fuel 356316.98 498843.765 427580.4 142526.79 1,425,268


Insurance 32857.401 46000.3611 39428.88 13142.96 131,430

Depreciation

On Plant & Machinery 225322.46 315451.448 270387 90128.985 901,290

Total Depreciation 225322.46 315451.448 270387 90128.985 901,290

Factory Overhead 670740.04 939036.056 804888 268296.02 2,682,960


Add : Op. Stock Work in

Progress 14148.672 19808.1415 16978.41 5659.469 56,595


Progress 17212.003 24096.8043 20654.4 6884.8012 68,848

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Parteners 513225.5 718515.7 615870.6 205290.2 2,052,902


ON BUILDING 3645 5103 4374 1458 14,580

On Vehicles 10544.833 14762.7666 12653.8 4217.9333 42,179





Telephone 1735.3404 2429.47653 2082.408 694.13615 6,941

Audit Fees 2125 2975 2550 850 8,500

Misc. Expenses 2570 3598 3084 1028 10,280



Goods 3755405.3 5257567.49 4506486 1502162.1 15,021,621


Goods 225361.05 315505.474 270433.3 90144.421 901,444


Goods 270181.65 378254.316 324218 108072.66 1,080,727


Sold 3710584.7 5194818.65 4452702 1484233.9 14,842,339


Packing Exp. 81837 114571.8 98204.4 32734.8 327,348



Advertisement 75452.001 105632.801 90542.4 30180.8 301,808


Expenses 180694.4 252972.161 216833.3 72277.76 722,778

Total Cost 3891279.1 5447790.81 4669535 1556511.7 15,565,117

Profit / (Loss) 124650.5 174510.7 149580.6 49860.2 498,602

Sales 4015929.6 5622301.51 4819116 1606371.9 16,063,719

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Cost sheet 2014-15




Op. Stock of R.M. 46402.9519 64964.133 55683.542 18561.18 185,612

Purchase of R.M. 2674357.5 3744100.5 3209229 1069743 10,697,430


Carriage Inward 53487.15 74882.01 64184.58 21394.86 213,949


Other Charges 26743.575 37441.005 32092.29 10697.43 106,974

Total Expenses 213948.6 299528.04 256738.32 85579.44 855,794

Less: Cl. Stock Of R.M. 313882.75 439435.85 376659.3 125553.1 1,255,531

Consumption of Raw Material 2620826.3 3669156.8 3144991.6 1048331 10,483,305

Direct Expenses

Direct Labour 135000 189000 162000 54000 540,000

Prime Cost 2755826.3 3858156.8 3306991.6 1102331 11,023,305

Factory Overhead




Bonus 2275 3185 2730 910 9,100

Power and Fuel 394917.981 552885.17 473901.58 157967.2 1,579,672


Insurance 27999.2121 39198.897 33599.054 11199.68 111,997

Depreciation

On Plant & Machinery 191524.093 268133.73 229828.91 76609.64 766,096

Total Depreciation 191524.093 268133.73 229828.91 76609.64 766,096

Factory Overhead 688197.767 963476.87 825837.32 275279.1 2,752,791

Total Factory Cost 3444024.07 4821633.7 4132828.9 1377610 13,776,096

Add : Op. Stock Work in Progress 17212.0031 24096.804 20654.404 6884.801 68,848


Progress 18871.3648 26419.911 22645.638 7548.546 75,485

Cost of Production 3442364.71 4819310.6 4130837.6 1376946 13,769,459

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Parteners 603146.75 844405.45 723776.1 241258.7 2,412,587


ON BUILDING 3280.5 4592.7 3936.6 1312.2 13,122

On Vehicles 8963.10832 12548.352 10755.73 3585.243 35,852





Telephone 1770.04719 2478.0661 2124.0566 708.0189 7,080

Audit Fees 2750 3850 3300 1100 11,000

Misc. Expenses 2840 3976 3408 1136 11,360



Goods 4129204.11 5780885.8 4955044.9 1651682 16,516,816


Goods 270181.654 378254.32 324217.98 108072.7 1,080,727


Goods 293838.113 411373.36 352605.74 117535.2 1,175,352


Sold 4105547.65 5747766.7 4926657.2 1642219 16,422,191


Packing Exp. 86383.5 120936.9 103660.2 34553.4 345,534



Advertisement 71679.4008 100351.16 86015.281 28671.76 286,718


Expenses 182768.601 255876.04 219322.32 73107.44 731,074

Total Cost 4288316.25 6003642.8 5145979.5 1715327 17,153,265

Profit / (Loss) 184597.5 258436.5 221517 73839 738,390

Sales 4472913.75 6262079.3 5367496.5 1789166 17,891,655

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PROFIT AND LOSS ACCOUNT

Particulars 2010-11 2011-12 2012-13 2013-14 2014-15

Sales 8,641,846 10,845,591 13,295,040 16,063,718 17,891,656

Cl. Stock 1,310,040 1,534,880 1,909,008 2,298,043 2,506,368

Total 9,951,886 12,380,471 15,204,048 18,361,761 20,398,024

Op. Stock 0 767,158 903,485 1,105,350 1,335,187

Purcahse of Raw Material 4,632,000 5,836,320 7,660,170 9,651,814 10,697,430

Carriage Inward 92,640 116,726 153,203 193,036 213,949

Transport Charges 231,600 291,816 383,009 482,591 534,872

Other Charges 46,320 58,363 76,602 96,518 106,974

Salary & Wages 375,000 453,000 565,680 658,200 766,800

Bonus 5,600 6,300 7,700 8,400 9,100

Power & Fuel 709,358 889,227 1,160,743 1,457,212 1,614,171

Repairs & Main 97,840 112,516 129,393 148,802 171,123

Depreciation 1,574,922 1,340,616 1,141,262 971,638 827,301

Interest Expense 544,520 463,562 344,676 266,057 186,174



Telephone 6,541 6,672 6,805 6,941 7,080

Audit Fees 5,000 6,000 7,500 8,500 11,000

Misc. Expenses 7,000 8,250 9,370 10,280 11,360

Packing Exp. 181,860 218,232 272,790 327,348 345,534

Carriage Outward 52012 62414.4 78018 93621.6 98822.8

Salary to Parteners 150,000 275,491 621,029 972,902 1,332,587

Advertisement 352,014 334,413 317,693 301,808 286,718

Interest on Capital 1080000 1080000 1080000 1080000 1080000

Profit -210,976 33,660 264,019 498,602 738,390

Total 9,951,886 12,380,471 15,204,048 18,361,761 20,398,024

Calculation of Salary

First 300000 or In case of

Loss 150000 270000 270000 270000 270000

On the balance 0 5,491 351,029 702,902 1,062,587

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BALANCE SHEET

Particulars Sche no. 2010-11 2011-12 2012-13 2013-14 2014-15

Sources of Fund

Partners' Capital A/c A 9,000,000 9,000,000 9,000,000 9,000,000 9,000,000

Partners' Current A/c 154,851 289,947 1,049,868 2,066,594 3,258,269

Loans & Fund

Secured Loan (IDBI

Bank @ 10%)

5,445,198 4,635,619 3,446,756 2,660,574 1,861,737

Sources of Funds 14,600,049 13,925,566 13,496,624 13,727,168 14,120,006

Application of Funds

Fixed Assets B

Op. Value 14,628,280 13,053,358 11,712,742 11,371,480 10,899,842

Less: Depreciation 1,574,922 1,340,616 1,141,262 971,638 827,301

WDV at the end of

year

13,053,358 11,712,742 10,571,480 10,399,842 10,072,542

Investments:

Shares of Relaince

Ltd.

0 278,112 420,120 400,145 522,449

Current Assets

Inventories C 1,310,040 1,534,880 1,909,008 2,298,043 2,506,368

Sundry Debtors 720,154 1,003,799 1,369,070 1,606,438 2,190,971

Cash & Bank Balances 40,257 35,044 40,268 54,809 168,701

Total Current Assets 2,070,451 2,573,723 3,318,346 3,959,290 4,866,041

Less:

Current Liabilities &

Provision

Sundry Creditors for

Goods

386,000 486,360 638,348 804,318 891,453

Sundry Creditors for

Expenses

137,759 152,652 174,975 201,001 273,202

Total Current

Liabilities

523,759 639,012 813,323 1,005,319 1,164,654

I. T. Payable 0 0 0 26,791 149,581

Net Current Assets 1,546,691 1,934,711 2,505,023 2,927,181 3,551,806

Apllication of Funds 14,600,049 13,925,565 13,496,623 13,727,168 14,120,006

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SCHEDULES FORMING PART OF BALANCE SHEET

Schedule :- A 2010-11 2011-12 2012-13 2013-14 2014-15

Partners' Capital A/c 9,000,000 9,000,000 9,000,000 9,000,000 9,000,000

Partners' Current A/c

Op. Balance 0 154,851 289,947 1,049,868 2,066,594

Add: Profit during the year -210,976 33,660 264,019 471,811 588,809

Add: Int. On Cap. & Salary

during the yrs 1,230,000 1,355,491 1,701,029 2,052,902 2,412,587

Less : Withdrawal 864,173 1,254,055 1,205,127 1,507,987 1,809,721

Balance at the end of year 154,851 289,947 1,049,868 2,066,594 3,258,269

Schedule :- B

Fixed Assets

Land 4,000,000 4,000,000 4,000,000 4,800,000 5,300,000

P&M 9,784,000 8,316,400 7,068,940 6,008,599 5,107,309

1,467,600 1,247,460 1,060,341 901,290 766,096

8,316,400 7,068,940 6,008,599 5,107,309 4,341,213

Furni 186,400 167,760 150,984 135,886 122,297

18,640 16,776 15,098 13,589 12,230

167,760 150,984 135,886 122,297 110,067

Building 200,000 180,000 162,000 145,800 131,220

20,000 18,000 16,200 14,580 13,122

180,000 162,000 145,800 131,220 118,098

Vehicle 457,880 389,198 330,818 281,196 239,016

68,682 58,380 49,623 42,179 35,852

389,198 330,818 281,196 239,016 203,164

Net Fixed Assets 13,053,358 11,712,742 10,571,480 10,399,842 10,072,542

Schedule :- C

Cl. Stock of Inventories

Raw Material 631,959 743,632 950,969 1,148,468 1,255,531

Work in Progress 38,360 45,643 56,595 68,848 75,485

Finished Goods 639,721 745,605 901,444 1,080,727 1,175,352

Total Value of Inventories 1,310,040 1,534,880 1,909,008 2,298,043 2,506,368

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CASH FLOW

2010-11 2011-12 2012-13 2013-14 2014-15

PBT -210976 33660 264019 498602 738390

less carry forward NIL

PBT -210976 33660 264019 498602 738390

less tax@30% 0 0 0 26791 149581

PAT -210976 33660 264019 471811 588809

add:Non-cash expediture 1230000 1355491 1701029 2052902 2412587

depreciation 1574922 1340616 1141262 971637 827300

cash in flow 2593946 2729767 3106310 3496350 3828696

D.FACTOR@ 12% 0.8928 0.7971 0.7117 0.6355 0.5674

TOTAL CASH INFLOW 2316023 2176154 2211010 2221993 2172505

CUMULATIVE CASH IN FLOW 2316023 4492177 6703187 8925180 13113075

Working Capital Released 2015390

CASH OUT FLOW 11172385

CAPITAL BUDGETING AND INVESTMENT DECISION

TOTAL CASH INFLOW 13113075

LESS:CASH OUT FLOW 11172385

NPV 1940690

PROFITABILITY INDEX 1.174

DISCOUNTED PAY-BACK

PERIOD 5.034

INTERNAL RATE OF RETURN 23.83

cash in flow 2593946 2729767 3106310 3496350 3828696

D.FACTOR@ 20% 0.8333 0.6944 0.5787 0.4822 0.4018

TOTAL CASH INFLOW 2161622 1895672 1797633 1686125 1538667

CUMULATIVE CASH IN FLOW 2161622 4057293 5854926 7541052 9079719

cash in flow 2593946 2729767 3106310 3496350 3828696

d.factor@15% 0.8695652 0.7561437 0.6575162 0.57175325 0.4971767

TOTAL CASH INFLOW 2255605.2 2064096 2042449.2 1999049.33 1903538.8

CUMULATIVE CASH IN FLOW 2255605.2 4319701.2 6362150.5 8361199.83 10264739

mailto:D.FACTOR@%2012%25

mailto:D.FACTOR@%2020%25

mailto:d.factor@15%25

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Cost of Project

Fixed Assets 14628280

Working Capital 1546691

Total Cost 16174971

Asset Value at the end of five

yrs 4150239.5

Tax Benefit 852346.22

Total Cost 11172385

11172385

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RATIO ANALYSIS

LIQUIDITY RATIO:

1. Current Ratio=Current Assets

Current Liabilities

Year Ratio

1 3.95

2 4.03

3 4.08

4 3.94

5 4.18

2. Quick Ratio=Current Assets-Stock

Current Liabilities-BOD

Year Ratio

1 1.45

2 1.63

3 1.73

4 1.65

5 2.03

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Capital Structure/Leverage Ratio:

i. Equity Ratio:

ii. Debt Ratio:

Year Ratio

1 37.30

2 33.29

3 25.54

4 19.34

5 13.02

iii. Debt to Equity Ratio:

Year Ratio

1 60.50

2 51.51

3 38.30

4 29.56

5 20.69

Year Ratio

1 61.64

2 64.63

3 66.68

4 65.44

5 62.95

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Activity Ratio:

A. Capital Turnover Ratio:

Year Ratio

1 59.19

2 77.88

3 98.51

4 116.79

5 125.15

B. Fixed Assets Turnover Ratio:

Year Ratio

1 66.20

2 92.60

3 125.76

4 154.46

5 177.63

Turnover Ratio:

Inventory Turnover Ratio:

Year Ratio

1 6.60

2 5.22

3 5.34

4 5.25

5 5.04

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Debtors Turnover Ratio:

Year Ratio

1 12.00

2 8.87

3 7.87

4 7.39

5 6.62

Creditors Turnover Ratio:

Year Ratio

1 12.00

2 9.28

3 9.51

4 9.28

5 8.56

PROFITABILITY RATIO:

Net Profit Ratio:

Year Ratio

1 -2.44

2 0.31

3 1.99

4 3.10

5 4.13

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FIXED ASSETS TO PARTNERS CAPITAL RATIO:

Year Ratio

1 1.45

2 1.30

3 1.17

4 1.16

5 1.12

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CASH FLOW STATEMENT Particulars 2010-11 2011-12 2012-13 2013-14 2014-15

A. Cash Flow from Operating Activities

Net profit before tax and extraordinary items -210,976 33,660 264,019 498,602 738,390

Depreciation 1,574,922 1,340,616 1,141,262 971,638 827,301

Foreign Exchange 0 0 0 0 0

Investment 0 0 0 0 0

Gain or Loss on sale of Fixed Assets 0 0 0 0 0

Interest/Dividend 0 0 0 0 0

Operating profit before Working capital

changes 1,363,946 1,374,276 1,405,281 1,470,240 1,565,691

Trade and Other receivables 720,154 283,645 365,271 237,368 584,533

inventories 1,310,040 224,840 374,128 389,035 208,325

Trade Payables 523,759 115,253 174,311 191,996 159,335

I. T. Payable 0 0 0 26,791 149,581

Cash generation from Operations -142,488 981,043 840,193 1,062,623 1,081,748

Interest paid/Salary to Parteners 1,230,000 1,355,491 1,701,029 2,052,902 2,412,587

Direct Taxes 0 0 0 26791 149581

Cash before extra-ordinary items 1,087,512 2,336,534 2,541,222 3,088,734 3,344,754

Deferred revenue

Net Cash from Operating Activities 1,087,512 2,336,534 2,541,222 3,088,734 3,344,754

B. Cash Flow from Investing Activities

Purchase of fixed assets 14,628,280 0 0 800000 500000

sale of fixed assets 0 0 0 0 0

Sale of investment 0 0 0 0 0

Purchase of investment 0 278112 142,008 -19,975 122,304

Interest Received 0 0 0 0 0

Dividend Received 0 0 0 0 0

Loans to Subsidiaries 0 0 0 0 0

Net Cash from Investing Activities -14,628,280 -278,112 -142,008 -780,025 -622,304

C. Cash Flow from Financing Activities

Proceeds from issue of Capital 90,00,000 0 0 0 0

Proceeds from long term borrowing 5,445,198 0 0 0 0

Repayment to finance/Lease Liabilities 0 809,580 1,188,863 786,181 798,837

Dividend Paid 0 0 0 0 0

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Parteners Withdraw 864,173 1,254,055 1,205,127 1,507,987 1,809,721

Net Cash from Financing Activities 13,581,025 -2,063,635

-

2,393,990

-

2,294,168

-

2,608,558

Net increase(Decrease) in cash/cash

equivalents 40,257 -5,213 5,224 14,541 113,892

Cash/Cash equivalents at the beginning 0 40,257 35,044 40,268 54,809

Cash/Cash equivalents at the end 40,257 35,044 40,268 54,809 168,701

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ASSUMPTIONS

We have considered 300 working days of production in each year.

The loan form IDBI is taken at 10 % interest rate p.a. and repay as per

the fund available.

All the partners are working partners and they have equal liabilities as

well as equal share of profit.

out of 10 partners one is accountant, human resource manager,

marketing manager, finance manager and production manager. In

addition to that all the partners have equivalent qualifications according

to their authority. Production capacity will increase as per the demand of consumers.

i.e.,

Tax provision is 30.90% including surcharge.

Depreciation is provided as per income tax Act as Weighted Average

Method.

We are taking loan from relatives in the beginning of the first year and

repay in that year before year ended.

Carriage in warred is 2%. transport cost is 5%, Other charges 1%

year Capacity ( in percentage)

1 50%

2 60%

3 75%

4 90%

5 95%

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In direct labor salary is increase year after year and no. of workers will

increase as per the requirement.

Bonus is paid as per the Bonus Act

Valuation of inventory as per AS – 2 (Valuation of inventory)

Payment made to parteners that is interest on capital and remuneration

as per the income tax ACT.

As per the judgment per of high court , parteners are also allowed

remuneration and interest on capital. Even if it is not shown in the

financial statement of entity if it is allowed by the partnership deed.

Work in progress is 2 days.

Closing stock of finished stock for 1 month.

We have followed the cocept of integrated Accounting system. ( Merging

of financial and cost accounting.)

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CONCLUSION

We would finally like to conclude our project with higher feeling of

having gained enormous knowledge about ice cream industry.

It is very obvious that ice cream industry will have to face very tough

competition from big market players but we are very much confident that

marketing will be our major weapon to fight with competition.

We have gained in depth knowledge about various management

aspects, and learnt how to make true theoretical fundamentals.

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Thank you

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