ppr on folding wall(cement)
-
Upload
patelkrupa1701 -
Category
Business
-
view
166 -
download
3
description
Transcript of ppr on folding wall(cement)
PPR ON FOLDING WALL
APRDUCT PROJECT REPORT ON
Shri Ram Folding walls
Prepared By: PATEL KRUPALI S.
Roll No: 83
Seat No: -
Class: BBA SEM-5
Academic year:2013-2014
College:Matushri Virbaima Mahila College Of Commerce, Management & It
Guided by:
Prof. Dharti Nathwani
Prof. Kalpesh Radiya
Submitted To:Saurashtra University
1MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
2MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
1.1) INTRODUCTION TO SMALL SCALE INDUSTRY
India is a developing country & most of the people in India depend on agriculture but slowly & gradually people are coming in Industrial sector. Due to less rainfall & unemployment in agriculture.The industries are classified into three categories.
a) Large Scale Industry b) Medium Scale Industry c) Small Scale IndustrySmall Scale Industry is most important part of any country. SSI provides platform to entrepreneurs for starting business. Govt. has defined SSI many times on different parameters. The industry whose investment in plant & machinery is up to 3 corers is termed as SSI.
SSI is the base for medium & large scale industry. It also give chance to new & young entrepreneurs to start a unit with very limited capital & it would ultimately play great role in shaping the country’s economy.
Project Report is very important for any business unit. Each unit is required to prepare project report for finance or for other purposes. A successful project contributes towards increase in Gross National Product which results into ultimate well being of the people in general. An unsuccessful project on the contrary, proves a burden on the scarce national resources as it does not contribute towards Gross National Product. Even- though it has developed resources for creation of assets lying unutilized or underutilized.
This project report is on Small Scale Unit which is engaged in producing folding wall. Folding wall is product which falls under cement industry
3MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
1.2INTRODUCTION TO PPR
“Folding walls” is use for protection of farms& garden. Some families in gujrat use of folding walls for decorate the boundary their house.
“Folding walls” is a product which falls under the category of “cement Industry”. it has a wider scope of usage the raw material. manufacturing process is also simple. The product is more famous in Gujarat & public is spreader all over India. Thus, over product can over more area of market for the sale of product. Hence, in general the product is accepted by all & used on a large scale.
4MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
1.3PROJECT AT A GLANCE
Name of the Unit “Shri Ram Folding Wall”
Tag line “Best Quality Is Here”
Promoter’s Name Patel krupali
Communication address TO -:Dhokaliya,Plot no-:155,Ta-:paddhari,Rajkot
Registration office Address TO -:Dhokaliya,Plot no-:155,Ta-:paddhari,Rajkot
Telephone No. 0281 2914395
Fax No. Not applicable
Form of Organization sole proprietorship
Size of the unit small scale industry
Brand Name “Shri Ram”
Usage of the product Protection of farm
SSI Registration No. Applied for
Number of employee 5
Investment 41,74,050
Day off Wednesday
Sources of finances 1.Owner’s capital (60%) 25,04,4302.Borrowed capital (40%) 16,69,620
5MVM COLLEGE RAJKOT
Investment in working capital 4,36,050
Investment in fixed capital 5,32,740
Relation with Bank State bank of India
Company logo
PPR ON FOLDING WALL
1.4)PROMOTER’S BACKGROUND
6MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
Name Patel Krupali S.
Age 24
Address To –dhokaliya,Survey no-151Ta-paddhari,Dist-rajkot,
Education/Qualification MBA
Experience Fresher
Nature of Responsibility Managing marketing & finance
Contribution in the unit 60%
7MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
1.5)JUSTIFICATION OF LOCATION
Selection of location of factory is one of the important decision for any of the company. Location of the company directly affect the profit as well as cost of production. So at the time of selection of the company location is carefully. Generally company select that location where all the basic facilities like water, raw-material, infrastructure, transportation etc are easily available.
Labours:
Man-power is the heart of the company. Generally all type of man-power are available have at reasonable rates. As for as this manufacturing company is connected with semi skilled labours are available near to the villages.
Raw-materials:
Raw-materials is most affect to decide the plant location. We use raw-material cement, grit, water, sand in manufacturing folding wall. So it is easily get from nearest rajkot. We purchase the raw-materials from the other company.
Transportation:
In this company transportation is mostly used because of the folding wall transfer from company to customer through truck or tractors. So transportation facility easily available and company also situated on near to the road.
proximity to market:
The unit deals in Rajkot market thus, market is very near for the unit. In the future to expand market is also easy because Gondal, Morbi, Shapar, Veraval etc. small towns are also near.
8MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
Other factors In other factors like electric connection, water
supply, technical knowledge, maintenance of machinery which are responsible for set up our industry in this area.
Above description we can say that the Shri Ram Folding Wall Location is the best location because of every facility are available to make a best location.
Jamnagar road
LOCATION OF UNIT -: TO -:Dhokaliya, Plot no-:155, Ta-:paddhari, Rajkot
9MVM COLLEGE RAJKOT
DHOKALIYA
KHANDHERI CRICKET STADIUM RAJKOT
PPR ON FOLDING WALL
1.6) ORGANIZATION STRUCTURE
10MVM COLLEGE RAJKOT
OWNER
GeneralManager
Factory Manager
Workers Workers
PPR ON FOLDING WALL
1.7)VISION & MISSION OF THE COMPANY
Vision Constantly produce different quality of “Folding wall”. Improving quantity. Maximum customer satisfaction.
Mission
Mission of the unit is to set the best quality stander for the society. To improve the economic condition of the country by social
changes.
11MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
1.8)BASIS AND PRESUMPTION
There is some basis and presumptions, the company has decided, are as follows:-
1. Our investment criteria would be up to 2 crore.2. The ratio of owner’s capital and borrowed capital would be 60:40.3. The minimum wage rates would be 2000.4. There are 6 working days a week.5. We are going to use 50%, 75% and 100% capacity of machinery
in the respective years.6. The pay-back period of loan would be 10 years.
12MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
1.9)IMPLEMENTATION SCHEDULE
No. Particulars Time Period
1. Preparation of Project Report 1 Month
2. Acquisition of Land 1 Month
3. SSI Registration 1 Week
4. Approval of loan 1 Month
5. Construction of Building 1 Months
6. Acquisition of Machinery 1 Month
7. Installation of Machinery 15 Days
8. Arrangement of Power 1 Month
9. Appointment of Staff &Labour 15 Days
Trail & Production will start from 8th month onward.
13MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
14MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
2.1)PLANT LAYOUT
According to F. G. Moore ,
“A good layout is one which allows materials rapidly and
directly for processing. This reduces transport handling, clerical and other
costs down per unit, space requirements are minimized and it reduces
ideal machine and ideal man time”
A technique of locating different machines and plant requires
within the factory so that the greatest possible output of high quality at
the lowest possible total cost be available. Proper plant layout is one of
keys of success in factory management. It signifies arrangement of
machines work area transport shorting of materials and processing to
different parts.
SHRI RAM INDUSTRY will have U type plant layout which
is reduce the unnecessary motion of employees. Industry arrange their
store room near to production plan so Industry eliminate damage of raw-
materials or finished product. Industry also arranged his machinery in that
way which reduce movement of raw-material.
15MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
2.2)RAW MATERIAL
The two basic raw materials used in the product is “cement” & “grit”. Secondly, “sand”, “water”&”iron are added to it . The raw materials used in the product are simple & are available easily in city like “Rajkot”.
However to maintain quality of final product a bit higher prices are to be
paid for inputs. Easy availability & enough quantity are the best features
of the raw materials. Even it is really easy to transport the materials.
cement, grit, sand & Water are product that ease the task of material
management & thus, it reduces overlapping or backtracking in
manufacturing process also.
1)CEMENT-:
16MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
2)GRIT-:
3)SAND-:
17MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
2.3) MACHINERY AND EQUIPMENT
Like raw materials machinery is also available easily. Some of the main acquired from local rajkot & some are acquired from Ahmadabad city.Mixing miller, vibrator, generator the machinery used in production process of folding wall(cement).
Sr. No.
Name of Machiner
y
Name of Suppliers
Units
Rs. Per Unit
Amount
1. Mixing miller
“shiv”enterpriserajkot
1 35,000
35,000
2. Vibrator “classic machinery” ahmedabad
3 30,000
60,000
3. generator “Suner machinery”rajkot
1 55,000
55,000
18MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
2.4)SUPPLIERS OF RAW MATERIAL AND
MACHINERY
RAW MATERIAL
1) Cement -: “Suraj cement” Near post office, Rajkot.
2) Sand-: -: “Mr. shah & co.” Morbi road, Rajkot.
3)Grit-: -: “prince enterprise” Kalawad road , Rajkot.
4)water: -: Mega Water Supply, Umang Nagar, Opp. New Medical,
Rajkot.
MACHINERY
1) Mixing miller-:“shiv”enterprise Rajkot
2)Generator - -: “Classic Machinery” Ahmadabad
3)Vibrator -: “Suner machinery” Rajkot
19MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
2.5)FLOW CHART OF PRODUCTION PROCESS
20MVM COLLEGE RAJKOT
RAW MATERIAL
MIXING IN MILAR
VIBRATORE
SHAPER BOXES
DRYING
JOINT SHEET OF CEMENT
FOLDING WALL
PPR ON FOLDING WALL
2.6)PRODUCTON PROCESS
Manufacturing process of Folding wall is very simple. Cement, sand, and
grit have to be put into mixing miller along with the required quantity of
water, to get folding wall. Ease of manufacture is a primary reason for
selecting this product for manufacturing.
We bough the raw – materials like cement, sand, grit, and water from
dealer in Rajkot . It is nearest to the “SHRI RAM” company. So, reduce
transportation cost.
Then all the raw-material mixing in miller machine which properly mix
raw-material.
Mixing raw material put in shaper boxes and gives the shape.
Shaper boxes put on the vibrator machine. so, vibrator help to fill mixture
appropriately in shaper boxes.
After vibrating the shaper box. The workers keep the boxes in the
bask .so, they dry over there and then we discard the cement sheets from
shaper box.
Now last stage of this process that joint cement sheet and making folding
wall.
21MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
2.7) PRODUCTION CAPACITY
Year Installed
capacity
Utilized capacity Units
1 100% 50% 60000
2 100% 75% 90000
3 100% 100% 120000
1) No. of shifts per day: 1shift (i.e. 8hours)
2) No of working days p.m.: 25days
3) No. of working days p.a.: 300days
22MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
2.8)
POLLUTION CONTROL & ENERGY
CONVERSION
POLLUCTION CONTROL:
The entrepreneur is advice to contact concerned state pollution control
board for detailed guidance in the matter.
“Shri Ram Folding wall” not use any high conical and raw materials
which spread pollution. They follow government rules of pollution high
walls in production department to reduce the noise pollution.
ENERGY CONSUMPTION:
Although the energy requirement, it’s small yet some important point for
conservation of energy are given below.
1)In electronically installation appropriate electric motors should be &
properly installed.
23MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
2.9)QUALITY CONTROL AND STANDARD
Today in the modern area of an industrialization product are produced on
a large scale to take the advantage of mass scale production. This creates
verification in the size or composition of the product if the quality or
standard not maintain.
Maintaining the quality of a product mean keeping its size & composition
within the tolerance limit. And also applied for ISO certificates.
To survive in a competitive business environment, organization makes all
possible efforts to produce the products, which satisfy their customers to
the maximum extent. He long on its ability to maintain the quality
standards as decided by the management and accepted by the customer.
The quality standards are described in terms of speciation like size, color,
shape, taste etc. the quality control is maintained by testing the actual
production and ascertaining that whether they conform to the standards.
24MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
10. WASTAGE MANAGEMENT
Waste management is the collection, transport, processing or disposal, managing and monitoring of waste materials. The term usually relates to materials produced by human activity, and the process is generally undertaken to reduce their effect on health, the environment or aesthetics. Waste management is a distinct practice from resource recovery which focuses on delaying the rate of consumption of natural resources.
Waste management practices can differ for developed and developing nations, for urban and rural areas, and for residential and industrial producers. Management for non-hazardous waste residential and institutional waste in metropolitan areas is usually the responsibility of local government authorities, while management for non-hazardous commercial and industrial waste is usually the responsibility of the generator subject to local, national or international controls.
Wastage management in SHRI RAM is done by disposing the waste in proper form and all defective folding wall sell at lower price.
25MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
26MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
3.1)MARKET POTENTIAL
The business is becoming more & more competitive everyday.
We generally believe that the business segment in which we will we
operate offers us opportunity for growth. In such competition, one has to
Endeavour their skills in quality product gifting, brand equity & healthy
distribution network so, as to maintain a sustainable, stable & leading
position in the market.
Before ten years ago, farmers are not use folding walls. But now the era has changed and farmer’s move to use of folding wall. Some peoples are use Folding wall for decorated their boundary of house.
27MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
3.2)MARKET SEGMENTATION
A market consists of buyers who different each other in one aspect or another. They may different in their wants, purchasing buying attitudues, preferences etc. so, that needs of each group may be satisfied separately. In other words development of market or to facilitate maximum utilization of available marketing resources and to increase their sales.
The firm segments the market like upper class & middle class & lower calss. Firm prodution three types of model. According to different class of people.
100% farmers are using Folding wall it is the ratio of Folding wall market segmentation.
28MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
3.3)PROMOTIONAL EFFORTS
This is the 4th& last topic of marketing mix. According to out study promotion is a communication activity whole main object is to move forward or push forward a product, service idea in a channel of distribution. The promotional activity always attempts to afford knowledge, attitude, performance and behavior.
You have best product with fair price people will not buy it they have no many idea regarding our product. So, it is very important to awards the people from the existence of product, it feature, uses, benefit, etc. this aspect help in awaking stimulating consumer demand for the product. Not only that but it also helps in capturing & maintaining demand for product.
In modern marketing it is more tamp to attract the customer by various promotional tools gather than good product. Every company directly or indirectly plays, the role of communicate and promoters. We are also going for advertise on folding wall by paints.
.
29MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
3.4)PRICING POLICY
Price is economic value of goods or services expressed in term of money.
Price is the marketing mix element that produces revenue; the other
produce costs. Price also one the most flexible element. It can be changed
quickly, unlike products features cannel commitments. Pricing governs
the very remissibility of any marketing program because it is only
element in a marketing mix accounting for demand as well unit of
revenue. All other element in marketing mix such as promotion and
distribution and cost element.
There are various pricing policy in market like..
1) Skimming pricing
2) Penetration pricing
3) Cost oriented pricing
4) Demand oriented pricing
In this company influence cost oriented pricing. Manager set the price
keep in mind the points like production cost, distribution cost, advertising
cost sales promotion cost marketing expenses.
The pricing policy may be define as a policy regarding fixing the
price of products on service kipping view the feature like enterprise goal,
cost, competitor, price demand etc.
30MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
3.5)DISTRIBUTION CHANNEL
31MVM COLLEGE RAJKOT
Owner
Customer
Agent
PPR ON FOLDING WALL
3.5) COMPETITORS
In the fast growing world of technology almost each and every company
may be having some or the other competitors.
The company “Shri Ram Folding Wall” faces competition from the
following competition in the local market.
Satya folding wall
Angel folding wall
Ronak folding wall
32MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
33MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
A) TOTAL FIXED ASSETS
A-1)Land& building
Land 7,00,000Land development & fencing 2,00,000Production building 9,00,000Office building 2,50,000Storage house 1,30,000Watch men’s cabin 50,000Bore well 1,00,000Water tank 20,000Lavatory & bathroom 25,000Main gate 13,000Total 23,88,000
34MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
A-2)Plant & machinery
Sr No. Particular Quantity Rate per machine
Value
1. Mixing miller 1 35000 350002. Vibrator 2 30000 600003. Generator 1 55000 55000
Total 4 150000
35MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
A-3) Preliminary expenses
Sr. No. Particular Rs.1. Consultancy fees 2,6002. Project report preparation fees 5,003. Legal expenses of company formation 4,800
Total 7,900
36MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
A-4)Furniture
Sr No.
Name of the item Quantity Rate per unit
Amount
1. Ordinary table 5 3,000 15,0002. Computer table 1 2,000 2,0003. Chairs 35 3,017 1,05,6004. Sofa sets 3 1,50,000 4,50,0004. Fen 20 1,500 30,0005. Light 30 500 15,0006. Door 15 10,000 15,0007. windows 20 4,000 80,0008. C.C.T.V. camera 5 10,500 52,5009. Air conditioner 2 70,000 1,40,00010.refrigerator 2 80,000 1,60,00011.computers 1 30,000 30,000
37MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
TOTAL FIXED ASSETS
Particular Rs.
Land & building 23,88,000
Plant & machinery 1,50,000
Preliminary expenses 7,900
Furniture 12,00,100
Total 37,38,000
38MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
A) TOTAL WORKING CAPITAL
B-1)Raw material (monthly)
Particular Qty. Rate AMT
Cement (per bag) 150 300 45000
sand(tone) 30 600 18000
Grit 30 300 9000
Total 72000
39MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
B-2)Salary and wages
Designation No. of employee
Salary per month
Total amt. monthly
Total yearly
General manager 1 15,000 15,000 1,80,000Factory manager 1 13,000 13,000 1,56,000Watchmen 1 3000 3000 36000Worker 5 4500 22500 270000Total 53,500 642000
40MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
B-3)Utility (production facilities)
Particular Monthly amt. Yearly amt.Power 3,500 42,000Water 4,500 54,000Total 8,000 96,000
41MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
B-4) Other expenses
Particular monthly Yearly Postage & stationary 1,000 12,000Telephone charge 1,600 19,200Transport charge 2,000 24,000Advertisement expenses 1,500 18,000Insurance 3,000 36,000Repair & maintenance 7,00 8,400Selling expenses 1,500 18,000Other miscellaneous expenses 550 6,600Total 11,850 1,42,200
42MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
TOTAL WORKING CAPITAL(per month)
Sr No. Particular Amount A. Raw material 72,000B. Salary and wages 53,500C. Utility 8,000D. Other expenses 11,850
Working capital *3month 1,45,350*3Total working capital 4,36,050
43MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
C)TOTAL INVESTMENT
Particular Rs.
Total fixed assets 37,38,000
Total working capital 4,36,050
total 41,74,050
44MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
D)SOURCES OF CAPITAL
Total investment 41,74,050
Own capital Borrowed (60%) (40%) 25,04,430 16,69,620
45MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
E)LONE PAYMENT SCHEDUAL
Year Opening balance Interest Closing1. 16,69,620 2,00,354 15,02,6282. 15,02,628 1,80,316 13,35,6963. 13,35,695 1,60,283 11,68,7344. 11,68,734 1,40,248 10,01,7725. 10,01,772 1,20,212 8,34,8106. 8,34,810 1,00,177 6,67,8487. 6,67,848 80,141 5,00,8868. 5,00,886 60,106 3,33,9249. 3,33,924 40,070 1,66,96210. 1,66,962 20,035 -
46MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
F)DEPRICIATION FIXED ASSETS
(1) YEAR
Name of the assets Opening balance
Depreciation Closing balance
Land & building (10%) 23,88,000 2,38,800 21,49,200Plant & machinery (15%) 1,50,000 22,500 1,35,000Furniture (10%) 12,00,100 1,20,010 10,80,090Computer (60%) 30,000 18,000 12,000
(2)YEAR
Name of the assets Opening balance
Depreciation Closing balance
Land & building (10%) 21,49,200 2,14,920 19,34,280Plant & machinery (15%) 1,35,000 20,250 1,14,750Furniture (10%) 10,80,090 1,08,009 9,72,081Computer (60%) 12,000 7,200 4,800
(3)YEAR
Name of the assets Opening balance
Depreciation Closing balance
Land & building (10%) 19,34,280 1,93,428 17,40,852Plant & machinery (15%) 1,14,750 17,215 97,535Furniture (10%) 9,72,081 97,208 8,74,873Computer (60%) 4,800 2,880 1920
47MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
G) ESTIMATED PRODUCTION AND SALES
(A) Estimation of production
Year Opening stock
Production Sales Closing stock
1 - 16,200 16,000 2002 200 24,300 24,000 5003 500 32,400 32,500 400
48MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
H) STOCK OF RAW MATERIAL(in units)
Particular 1 2 3Opening stock (unit)+ purchases (unit)_consumption (unit)
0
48,80048,600
200
73,20072,900
500
97,10097,200
Closing stock * Rate Per unit
200200
500200
400200
Closing stock in Rs. 40,000 1,00,000 80,000
49MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
I)TOTAL FIXED EXPENSES
Fixed cost per unit = Total Fixed Cost At 100% Total production at 100%
= 5,32,740 32,400
=16.44
50MVM COLLEGE RAJKOT
Particular Amount
Salary & wages (60%) 3,85,200
Utilities (50%) 48,000
Other expenses (70%) 99,540
Total fixed expenses 5,32,740
PPR ON FOLDING WALL
J)TOTAL VARIABLE EXPENSES
Particular Amt.Raw material(100%) 8,64,000Salary & wages (40%) 2,56,800Utility (50%) 48,000 Other expenses (30%) 42,660Total 12,11,460
Variable cost per unit = Total Variable Cost At 100% Total production at 100%
= 12,11,460 32,400
= 37.39
51MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
K)TOTAL COST
Total cost = total fixed expenses + total variable expenses
= 5,32,740 + 12,11,460 = 17,44,200
52MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
L)BREAK EVEN POINT IN UNIT
Break Even Point In Unit = fixed cost Selling price – variable expenses per unit
= 5,32,740 200-153
= 5,32,740 47
BEP = 15
53MVM COLLEGE RAJKOT
BEP = 11,335
PPR ON FOLDING WALL
M)BREAK EVEN POINT IN RS.
Break Even Point in Rs. = BEP in Rs.* selling price per unit
= 11,335 * 20
54MVM COLLEGE RAJKOT
BEP in Rs. = 22,67,000
PPR ON FOLDING WALL
N )TABLE SHOWING FIGURES OF SALES
55MVM COLLEGE RAJKOT
year prod. Capacity sales(unit)
selling price per unit Rs.
total sales Rs.
1 50% 16,000 200 32,00,0002 75% 24,000 200 48,00,0003 100% 32,500 200 65,00,000
PPR ON FOLDING WALL
O) TABLE SHOWING FIXED EXPENSES
56MVM COLLEGE RAJKOT
particular year-1 year-2 year-3salary& wages
(60%)3,85,200 3,85,200 3,85,200
utilities (50%) 48,000 48,000 48,000
other exp. (70%)
99,540 99,540 99,540
total 5,32,740 5,32,740 5,32,740
PPR ON FOLDING WALL
P) TABLE SHOWING VARIABLE EXPENSES
57MVM COLLEGE RAJKOT
Particular Year-1 (50%)
year-2(75%)
year-3(100%)
Raw material 8,64,000 12,96,000 17,28,000Salary & wages (40%)
2,56,800 3,85,200 5,13,600
Utility (50%) 48000 72000 96000Other expenses (30%)
42660 63990 85320
Total 12,11,460 18,17,190 24,22,920
PPR ON FOLDING WALL
Q)TRADING ACCOUNT
(1) YEAR
Particular Rs. Particular Rs.To opening stock Raw material 0Finish goods 0
To purchase of materialTo salary & wagesTo utilities
GROSS PROFIT
_ _
8,64,0002,56,80048,000
21,51,200
33,20,000
By sales Cash (40%)12,80,000Credit (60%)19,20,000
By closing stockRaw material Finish goods
32,00,00012,80,00019,20,000
8000040000
33,20,000
58MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
R)PROFIT AND LOSS ACCOUNT
(1) YEAR
Particular Rs. Particular Rs.
To salary & wagesTo utilities To other expenses -:Fixed exp. Variable exp.To depreciation -: Land Plant Furniture computersTo interest on loanTo interest on capital (6%)Preliminary exp. To provision for taxation
NET PROFIT
3,85,20048,000
99,54042,660
2,38,80022,5001,20,01018,0002,00,345150265
7902,47,524
5,77,556
21,51,200
Gross profit 21,51,200
21,51,200
59MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
S)BALANCE SHEET
(1) YEARliability Rs. Assets Rs.
Own capital 25,04,430+ Interest onCapital 1,50,265+ Net profit 5,77,556
Bank loanOutstanding interest on loanCreditorsProvision for taxation
Bill payable
32,32,251
15,02,658
2,00,3545,18,4002,47,524
1,03,680
5804867
Land &Building 23,88,000- dep. 2,38,800Plant &Machinery 1,50,000 - dep. 22,500Furniture 12,00,100- dep. 120010Computer 30,000- dep. 18,000Debtor Bill receivablepreliminary Expenses
Closing stock Raw material 80,000
+ finish Goods 40,000
Cash on hand
21,49,200
1,35,000
10,80,090
12,00017,60,0003,52,0007,110
1,20,000
1,89,467
5804867
60MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
Q)TRADING ACCOUNT
(2) YEAR
Particular Rs. Particular Rs.To opening stock Raw material Finish goods
To purchase of materialTo salary & wagesTo utilities
GROSS PROFIT
80,000 40,000
12,96,0003,85,20063990
32,34,810
51,00,000
By sales Cash (40%) 1,920,000Credit(60%) 28,80,000
By closing stockRaw material Finish goods
48,00,000
2,00,0001,00,000
51,00,000
61MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
R)PROFIT AND LOSS ACCOUNT
1) YEAR
Particular Rs. Particular Rs.To salary & wagesTo utilities To other expenses -:Fixed exp. Variable exp.To depreciation -: Land Plant Furniture computersTo interest on loanTo interest on capital (6%)Preliminary exp. To provision for taxationNET PROFIT
3,85,20048,000
99,54063,990
2,14,92020,2501,08,0097,2001,80,3151,93,935
7905,73,798
13,38,862
32,34,810
Gross profit 32,34,810
32,34,810
62MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
S)BALANCE SHEET
2)YEAR
liability Rs. Assets Rs.
Own capital 32,32,251+ Interest onCapital 1,93,935+ Net profit 13,38,862
Bank loanOutstanding interest on loanCreditorsProvision for taxation
Bill payable
47,65,048
13,35,696
1,80,3167,77,6005,73,798
1,55,520
7787978
Land &Building 21,49,200- dep. 2,14,920Plant & Machinery 1,35,000- dep. 20250Furniture 10,80,090 - dep. 1,08,009Computer 12,000- dep. 7,200Debtor Bill receivablepreliminary Expenses
Closing stockRaw material 2,00,000
+ Finish goods 1,00,000
Cash on hand
19,34,28
1,14,750
9,72,081
4 80036,00,007,20,0006,320
3,00,000
1,35,747
7787978
63MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
Q) TRADING ACCOUNT
(3) YEAR
Particular Rs. Particular Rs.To opening stock Raw material Finish goods
To purchase of materialTo salary & wagesTo utilities
GROSS PROFIT
2,00,000 1,00,000
17,28,0005,13,60096,000
41,02,400
67,40,000
By sales Cash (40%) 26,00,000Credit(60%) 39,00,000
By closing stockRaw material Finish goods
65,00,000
1,60,00080,000
\
67,40,000
64MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
R)PROFIT AND LOSS ACCOUNT
3)YEAR
Particular Rs. Particular Rs.To salary & wagesTo utilities To other expenses -:Fixed exp. Variable exp.To depreciation -: Land Plant Furniture computersTo interest on loanTo interest on capital (6%)Preliminary exp. To provision for taxation
NET PROFIT
3,85,20048,000
99,54085,320
1,93,42817,21597,2082,8801,60,2832,85,902
7908,17,990
19,08,643
41,02,400
Gross profit 41,02,400
41,02,400
S) BALANCE SHEET
65MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
3)YEAR
liability Rs. Assets Rs.
Own capital 47,65,048+ Interest onCapital 2,85,902+ Net profit 19,08,643
Bank loanOutstanding interest on loanCreditorsProvision for taxation
Bill payable
69,59,593
11,68,734
1,60,28310,36,80081,79,90
20,73,60
10,350,70
Land &Building 19,34,280- dep. 1,93,428Plant &Machinery 1,14,750- dep. 17,215Furniture 9,72,081- dep. 97,208Computer 4,800- dep. 2,880Debtor Bill receivablepreliminary Expenses
Closing stockRaw material 1,60,000
+ Finish goods80,000
Cash on hand
17,40,852
97,535
8,74,873
1,92059,15,00011,83,0005,530
2,40,000
2,92,050
10,350,70
66MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
T) STATEMENT OF PROFITABILITY
particular year-1 year-2 year-3
sale-variable
32,00,00012,11,460
48,00,00018,17,190
65,00,00024,22,920
contribution-fixed exp.
19,88,5405,32,740
29,82,8105,32,740
40,77,0805,32,740
EBDIT-dep.EBIT-interest on loan-interest on cap.
14,55,8003,99,31010564902,00,3541,50,265
24,50,0703,50,37920,99,6911,80,31619,39,35
35,44,3403,10,73132,33,6091,60,2832,85,902
EBT-taxes (30%)
7,05,8712,11,761
17,25,4405,17,632
27,87,4248,36,227
PAT 4,94,110 12,07,808 19,51,068
67MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
U) COST SHEET
68MVM COLLEGE RAJKOT
PARTICULARS YEAR -1
YEAR -2
YEAR -3
Opening stock of raw –material
_ 80,000 2,00,000
(+) purchase of Raw material
8,64,000 12,96,000 17,28,000
(-) Closing stock of Raw material
80,000 2,00,000 1,60,000
Consumption of Raw material
7,84,000 11,76,000 17,68,000
(+) salary wages 2,56,800 3,85,200 5,13,600
(+) Utilities 48,000 72,000 96,000
Prime cost 10,88,800 16,33,200 23,77,600
(+) Utilities 48,000 48,000 48,000
Factory cost 11,36,800 16,81,200 24,25,600
(+) salary-wages 2,56,800 3,85,200 5,13,600
(+) Other expenses 42,660 63,990 85,320
Office cost 14,36,260 21,30,390 30,24,520
(+) opening stock of finished goods
- 40,000 1,00,000
(-) Closing stock of finished goods
40,000 1,00,000 80,000
Cost of production 13,96,260 20,70,390 31,44,520
(+) Other expenses 42,660 63,990 85,320
Total cost 14,38,920 21,34,380 32,29,840
(+) profit 17,61,080 26,65,620 32,70,160
Sales 32,00,000 48,00,000 65,00,000
PPR ON FOLDING WALL
69MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
RISK FACTOR
1. Changes in Government policies for this type of industries may
affect the organization positively or negatively accordingly, as
profit may increase or decrease due to Government’s intervention.
2. There is always risk of competition from existing & potential units.
But to avoid this risk, cost reduction through ideal utilization of
resources, use of good quality of raw material etc. will be helpful.
3. The company must take competition into consideration of existing
and new units, as it is normal and prevalent factor in every industry
70MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
SWOT ANALYSIS
STRENGTH:-
Satisfaction of the consumer about the product of the company is main
strengths.
Best operation control for quality assurance.
Low maintenance of this product.
71MVM COLLEGE RAJKOT
PPR ON FOLDING WALLWEAKNESS:-
We are giving less advertisement.
OPPORTUNITIES:-.
By making some good promotional efforts, company can gain more no.
of customers who will be loyal.
Company can appoint young & fresh employee to ease the official
work.
THREATS:-
Government rules and regulation change every time.
Competition with big giants..
72MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
FUTURE PLANNING
Every units aims at its growth and development in future at the time of establishment. But, The future development of any unit shows its success in the market. Every body’s future is uncertain although everybody plans for their future
73MVM COLLEGE RAJKOT
PPR ON FOLDING WALL Future development may be get through the increasing installed capacity or utilizing the existing resources of the unit to the full extend.
The future plan of the company indicates what the company wants to do on future. The development of this industry increases with the demand for various cement products. Cement product like boundary wall, fencing poll, cement bricks etc. Therefore the future plan of the company is to increase its production various product, so as to meet the requirement.
So far as our unit is concern we have to utilize folly the available resources of our unit and by increasing production capacity we want to cover more market share with maintenance of good quality.
74MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
CONCLUSIONS
In the product project report I have discussed all the financial data and other relevant information.
As such we as a citizen of India having some responsibility to uplift the economic level and also make the life more and more compatible.
75MVM COLLEGE RAJKOT
PPR ON FOLDING WALL Thus, we are feeling great pleasure to make the product in front of
you and so expecting move response from market& trying to satisfying the prospecting customer.
At last it can be said that future of this product is very bright with expectation of high profitability.
76MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
Reference Book:
1. Marketing Management : Philip Kotler
2. Marketing Management : S.A Sherlekar
77MVM COLLEGE RAJKOT
PPR ON FOLDING WALL
3. Finance Management : Khan & Jain
78MVM COLLEGE RAJKOT