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Transcript of tappen industry
PRODUCT PROJECT REPORT ON
‘TAPPEN INDUSTRY’
PREPARED BY
TILALA SAGAR R.
ACADEMIC YEAR
2013-2014
CLASS
TY BBA SEM – 5
ROLL NO - 56
DIVISION - C
GUIDED BY
Prof. Jagdish mulchandani
SUBMITTED TO
SAURASHTRA UNIVERSITY
RAJKOT
GYANYAGN COLLEGE OF SCIENCE & MANAGEMENT RAJKOT
DECLARATION
I the undersigned TILALA SAGAR R. a student of BBA SEM.-5
hereby declare that the project work presented in this report is my own
work and has been carried out under the supervision of Prof. Jagdish
mulchandani of GYANYAGN College, Rajkot.
This work has not been previously submitted to any other
university for any examination.
Date :-
Place :-
Signature
ACKNOWLEDGEMENT
It is really a matter of great pleasure for me to present this creative
and practical work. At this stage, project report is an important part of
learning & every entrepreneur prepares it before starting of actual
production.
I have taken this opportunity to express my sincere thanks to all
those who helped me in the preparation of this report. First of all I would
like to thank my parents who have encouraged me for preparing such a
perfect product project report, then Prof. Jagdish mulchandani for his
guidance.
I am very glad to submit the report before the Saurashtra
University. I have tried my level best to present the available
information in the best possible manner.
Preface
India is very large Country & the Indian economy is a developing economy
at present. So, each & every industry has great opportunities to achieve higher &
higher growth. Moreover our country is very much populated. So, there is good
market available for producers for their product. That is why the many overseas
companies come to India to get the benefit of large no. of consumer available.
“Learning by Doing” is the hidden condition of Management course. The
theoretical knowledge has its own limitation. So, the preparation of product project
report plays a dominant role to develop the practical viewpoint of students and also
making them aware about the problem, Opportunities & situations of small scale
industries. It is the modest way to develop entrepreneurial skills, ability & aptitude.
Keeping in mind the important role of SSI units, Saurashtra University,
Rajkot has prescribed a product project report for small scale units in its syllabus
particularly for introducing a subject entrepreneurship and management of small
Business.
I have tried to cover all the relevant points and have tried to give in most &
in systematic manner.
INDEX
Sr.no. Particular Page no.
1. General information 1
2. Production Department 9
3. Personnel Deparment 17
4. Marketing Department 24
5. Finance Department 31
6.
List of supplier of machinery & raw
materials 56
7. Future plans 57
8. Risk factors 58
9. Conclusion 59
10. Bibliography 60
1
2
General information
sr. no. Particular Page no.
1 Introduction 3
2 Project at glance 4
3 Owner’s Bio-data 5
4 Proposed location justification 6
5 Organization structure 8
3
Introduction
The small scale in India covers a wide spectrum of Industries
categorized under small, tiny and cottage segment ranging from small
artisans handicraft units to modern production units with significant
investment. This sector has acquired a prominent place in the country as
it not only acts as a nursery for the development of entrepreneurial talent
but also producer a wide range of products.
In the Indian context, the small scale industry has been receiving due
attention and importance from the policy makers owing to its special
characteristics, namely.
Low level of investment required.
High potential for creation employment opportunity.
Least location constraints.
There by contribution to a balanced regional development and high
of local resources.
In this project report of small scale industry. I have selected produce
Mobile Stove as my product. The product selected by me is newly
lunched and it has Monopoly in the market. And there is no competition
in the market for Mobile stove.
4
Project at glance
Unit’s Name : TAPPEN INDUSTRY PVT. LTD.
Address for Communication : TAPPEN INDUSTRY PVT. LTD.
2- PATEL NAGAR,
KOTHARIYA MAIN ROAD,
RAJKOT-360 002.
Type of Unit : sole proprietor firm
Product : Stove
S.S.I Registration No. : Applied for
Subsidy Registration No. : No Subsidy Taken
Location of the Unit : TAPPEN INDUSTRY PVT. LTD.
2- PATEL NAGAR,
KOTHARIYA MAIN ROAD,
RAJKOT-360 002.
5
Owner’s Bio-data
Name :- TILALA SAGAR R.
Address :- “krushna kunj”
1, geeta nagar,
Rajkot – 360002
Age :- 20 years
Educational qualifications :- BBA
Experience :- Fresh
Role in unit :- Chairman
6
Proposed location justification
This decision on location is very vital point to be considered while
establishing a unit. Following factors were considered before deciding on the
location of the unit:-
Type of Industry Available
The Rajkot region of Saurashtra has been selected for establishing unit
because it is the native place of the partners so one can do business without going
outside. Beside labor is also available in ample and at low rates here.
Infrastructure
Infrastructural facilities like roads, railways, water, electricity etc should be
available. Rajkot is a developing city and comes under the jurisdiction of
Mahanagar Palika. Thus all the infrastructure facilities are available here.
1. Electricity:
Power is the main facility which is required for operating the oil
machine as this machine are totally depends on electricity & it is provided
by G.E.B. uninterrupted whole week accept Wednesday which is holiday in
this area.
7
2 Water:
Water is required for the purpose of drinking water for the workers
and for the production as this facility is also well flourished over here by the
management.
3 Transportation:
As there is transport facility available in Rajkot. So it is very
convenient for customers to reach to our site and also for us to supply
products to our valued customers.
4 Communication:
As TAPPEN Indu. is one of the parts of RAJKOT so there is an easy
availability of B.S.N.L. which provides basic telephone, mobile tower, &
internet facility too.
5 Raw Material:
Here the raw material for production of stove is available at
reasonable price and adequate quantity
8
ORGANIZATION STRUCTURE
When you want to study about an Organization then first you must study
about Organization system. It means Organization structure. In it you can know the
position and the place of chairman, director, manager, assistant, salesman, etc….
and also you can know the level of the Organization structure.
The term Organization means a group of individual co-ordinate in to
difference levels of authority, responsibility and segment of specialization of the
industry.
So far as Tappen indu. is concerned, there is an excellent Organization
structure where the authority over upwards to downward and compliments going
downwards to up wards. As result, major decision are taken by the top-level
executives and passed to sub ordinates.
The internal form of the Organization adopted is in Organization and line of
accountability is clear well defined.
9
10
Production department
Sr. no. Particular Page no.
1 Product Introduction 11
2 Product uses 13
3 Production schedule 15
4 ACQUISITION OF
MACHINERY 16
11
Product Introduction
The product is the most tangible and important single component
of the marketing program. The product is bundle of all kind of
satisfaction of both material and non-material kinds with including
physical object, design, brand, package, label, price, services, supportive
literature etc.
Here the product which will be produced by me is one kind of
stove. There are many types of stoves available in the Market such as
Ashok Stove, Anmol Stove etc. but this stove is something different than
others. It is designed with including very differentiate features with
keeping in mind the limitations of the stoves available in the Markets.
The product is innovative and very useful for the target Market. It
is capable enough that it can easily satisfy the wants and needs of the
consumers.
12
Generally, the stove requires wood or coal in its use, which creates
Air pollution in the Environment, but to use this stove there is no need of
all such materials. Only 1 Chemical Tablet is used which is free from
smoke or any type of Air Pollution.
The other differentiable feature is its price, weight and its Mobility.
That is, the weight of the product is only 20 Grams. So, we can easily
keep it in our purse of pocket. It has a higher mobility feature also.
Though its weight is only 20 Grams, its capacity is of 50 Kgs.
Due to its less weight and higher Mobility. We can easily keep it
with us. Anywhere we go. i.e. at Picnic, at Yatra or Paricrama and for
long journey in trains also. The prices are also very less as compare to
the others. Thus, because of the lesser price and greater usefulness
anyone can easily attracted towards the product.
Looking to the product uses and its innovative features as well as
greater advantages. We can say that this product is really “Tappen” for
us. Thus, the product will be produced under the brand name of Tappen
with named “TAPPEN MOBILE STOVE”
13
Product Uses
Some of the most important uses of the product.
i.e. “Tappen Mobile Stove” is given below.
We can prepare 3 cups of Tea, Milk of Coffee in 5 minutes only.
We can prepare Dal-Chaval of Hauch Pouch.
i.e. Khichdi of two or three people only in few minutes.
Even we can eat hot food on Dinning Table with the help of
Tappen.
In winter, we can take hit with the help of this stove; even water
for shaving purpose can also be made hot at any time and any
place.
The most important thing that people believe that according to
Vastushastra. We can keep this stove in the fire corner.
The stove is very frequently useful for the Students of Hostels &
Boarding also.
14
Doctors can also boil the needle of the injections in the water with
the help of this stove.
The beauticians can use this in making wax hot in beautiparlour.
In buffe party and even in kitty party this can be used.
15
Production schedule
INCOMING RAW MATERIAL
INSPECTION
↓
CUTTING
↓
BENDING
↓
POWDER COTTING
↓
REVATING
↓
EMBOZING
↓
PRINTING
↓
PACKAGING
↓
DESPATCH
16
ACQUISITION OF MACHINERY
The machineries at an estimated cost Rs. 13,60,000 have been installed and
have been acquired function expected. Specification of process delivery terms and
payment facilities mainly the machines installed are made in India.
Press machines
Milling Machine
Cutting Machine
PMS-H [Code No.]
Ceasing Machine
17
18
Sr No. Particulars Page No.
1. Introduction 19
2. Recruitment and Selection and Introduction 20
3. Training and Management 21
4. Promotion and Transfer Policy 22
5. Wage and Salary 23
19
INTRODUCTION
Personnel Management is the part of the management function part of the
management function is primarily concerned with the human relationship with in
an Organization.
Personnel management is concerned with the managerial functions
(Planning, Organization, Directing, Controlling, co-ordination) and operative
function (production, development, compensation, integration, maintenance) with a
view to attaching, organization goals economically and effectively and meeting the
individual and social goals.
So, personnel management is a process of producing the required member
and person at the right time on right place for right job and utilizing their ability to
achieved goals.
We can say that personnel management is that part of management which
covers all the important aspects like manpower planning, selection process, method
of training and development performance appraisal, promotion, transfer salary and
industrial relation.
20
Recruitment selection and induction
Recruitment
Recruitment has been regarded as the most important function of
personnel administration. Tappen indu. Ltd. Recruit employees as per their
need. They follow the following resource of recruitment.
Internal source:-
Internal sources are the most obvious source. This includes
personnel who are already in the service of Organization.
External source:-
Recruitment tends to focus their attention outside organization.
Tappen indu. Ltd. Mostly uses both types of recruitment sources.
Methods of recruitment
There are mainly three methods of recruitment these are:
1. Direct Method
2. Indirect Method.
3. Third Party.
21
TRAINING AND MANAGEMENT
DEVELOPMENT
Training
After selecting the most suitable person in the Organization through
the application of scientific techniques the next important function of
personnel manager is to arrange their training and development program.
Training is a systematic program to increase the knowledge, skills,
abilities and aptitudes of workers to perform scientific jobs. There are
various methods of training.
A. On the job training method.
B. Classroom Method.
C. Apprentice training Method.
Development
Development of a management is also another important aspect.
Development is a related process.
Company organizes seminar for their employee with the help of
various management institutions.
22
Promotion & transfer policy
A promotion means an unwary advancement of an employee in and
Organization to another job. Promotion with in grade or horizontal promotion.
In Tappen indu. promotion is given on the seniority basis seniority refers to
the length of services in the organization. They giving promotions in varied ways
they are as follows:
By increasing salary of person.
By raising status of person.
By giving more extra benefits to the person.
Transfer policy
Transfer means lateral shift causing movement individuals from one position
to another usually without involving any marked changes in duties, responsibilities
skills needed or compensation.
In Tappen indu. no persons are transferred in case of conflict or some other
problems only they are transferred.
23
Wage and Salary
Wage and salary administration is so important thing for employees.
In Tappen indu. Ltd. for wage and salary administration the following
registers are kept.
Attendance register
Wage register
Salary register.
24
25
Marketing department
Sr. No. Particulars Page No.
1. Introduction 26
2. Market segmentation 27
3. Pricing Policy 28
4. Channel of distribution 29
5. Advertisement 30
26
Introduction
In modern competitive age marketing management plays an important
and vital role in the business for accomplishment of certain goal. The main
object of marketing department is to increase volume to maximize the profit
and growth of the business and hence help in expansion of the organization.
According to the definition, “marketing management is the process of
planning and executing the conception, pricing, promotion and distribution
of goods, ideas and services to create exchanges the satisfy individual and
organizational goals.”
So far as Tappen indu. is concerned it has separate marketing
department .
The company has direct contact with its consumers and also with their
distribution in India. The whole marketing activities handled by separate
department of the company.
27
MARKET SEGMENTATION
The modern market is customer oriented. All marketing activities resolve
around customer in order to achieve the marketing objectives. It is the customers.
The concept of the market segment is based on the fact that the market of
commodities is not homogeneous but they are heterogeneous market represents a
group of customers having common characteristics market segmentation consist of
taking the total homogeneous market for a product dividing it into several sub
market. Through market segmentation sellers try to identify those who are most
likely to buy their goods and services.
Market segmentation is done on various bases, which are as follows.
Geographic segmentation
Demographic segmentation
Psycho grahic segmentation
Behavioral segmentation
28
PRICING POLICY
Policies are guideline for achieving the objectives. Pricing decision play
every crucial role on the development of any industry because pricing decision is
the only factor in marketing mix of any firm, which produce revenue.
Pricing is a critical decision in marketing management. The main objective
of the firm i.e. to earn profit depends very much upon the correct pricing decision.
The top takes In Tappen indu. Ltd pricing decision level management there
is not a specific pricing policy but the price of each product is fixed with an eye on
the following factors.
Cost of production
Competitive price in the market
Normal Profit
Advertising Cost
Distribution Cost
When the price policy of a particulars product is controlled on fixed by the
Govt. possibilities of increasing the price of non-price controlled products and to
be sought. It should also be considered weather the producer should adopt one
price policy on price differentiation policy that is different price for different
person on purpose.
29
CHANNEL OF DISTRIBUTION
In today’s economy most producers do not sell their goods directly to the
final users. Most producers work with marketing intermediates to bring their
product to market. A distribution means to distribute, spread out or disseminated in
the field of marketing. Channel of distribution shall be considered to comprise a set
of institution, which performs all of the function utilized to move a product and its
title from production to consumption.
Tappen indu. Ltd. Has adopted zero level channels and one level channel.
Zero level channel consists of manufacturer selling directly to consumers. It is
called direct marketing channel. And a one level channel contains one selling host.
Is industrial markets there is often as sales agent. Tappen indu. Ltd is having 25
dealers in Gujarat and 6 dealers are out of Gujarat at present.
30
Advertisement
The best advertising is done by satisfied customers. Nothing except the mint
can make money without advertising mass production and mass distribution totally
depend on all firms of advertising and publicity. Modern advertising informs
guides, educates as well as protects buyers. So that they can buy intelligently and
raise their standard of living. The wheels of industry and commerce cannot move
with desirable special without the propelling power of advertisement.
The company has to select the best media from among the various media for
advertising. Also the size of the advertisement with lower or notable rate is to be
selected. If should be an eyes caching caption. The company keeping in made the
village people, because most of their customers are villagers.
After all they select as media like news paper, holdings, wall painting for
advertising. One percentage of profit is spent for advertising in a year.
The main aim of using news paper is that more public be made aware of
company’s product company advertise in newspaper like Gujarat Samachar and
Divya Bhaskar.
31
32
Finance Department
Sr.no. Particular Page no.
1. Financial details 33
2. Means of Capital &
It’s Allocation 41
3. Cost of Production 44
4. Break Even Point
Analysis 45
5. Final Accounts 47
33
Financial details of project & It’s arrangements
1. Fixed Capital Details:-
Land
Building
Machinery & Equipments
Preliminary & Pre-Operative Exp.
I. Land
10,000 Sq. Mtr * 500 Rs. Per Sq. Mtr. = 50,00,000
II. Building
9,000 Sq. Mtr * 500 Rs. Per Sq. Mtr. = 45,00,000
34
III. Machinery & Equipments
Sr.
No.
Particulars No. Price Total
Amt.
1 Cutting Machine 10 60,000 6,00,000
2 Milling Machine 5 25,000 1,25,000
3 Press Machine 10 30,000 3,00,000
4 PMS-H [Code No.] 5 42,000 2,10,000
5 Ceasing Machine 5 25,000 1,25000
TOTAL 13,60,000
Add.
Electrification &
Installation Charges at
10% of Cost of
Machine & Equipments
1,36,000
TOTAL 14,96,000
35
IV. Preliminary & Pre-Operative Exp.
Sr.
No.
Particulars Amount
(P.M)
Amount
(P.Y.)
1 Preliminary Exp. 75,000 9,00,000
2 Pre-Operative Exp.
(a) Legal Charges
(b) Establishment
(c) Miscellaneous exp.
60,000
50,000
50,000
7,20,000
6,00,000
6,00,000
TOTAL 2,35,000 28,20,000
Total Fixed Capital Statement
Sr. No. Particular Amount (Rs)
1 Land 50,00,000
2 Building 45,00,000
3 Machinery & Equipments 14,96,000
4 Preliminary & Pre- Op. Exp. 2,35,000
Total Fixed Capital 97,21,000
36
2. Working capital detail
Raw Material
Sr. No. Particular Quantity Rate Amount
(P.M.) Amount (P.Y.)
1 M.S.Sheet
6000 Kg 25 1,50,000 18,00,000
2 S S Sheet
7500 Kg 27 2,02,500 24,30,000
3 Purchased
Parts:
a. Steel Cups
b. Wax Tablets
15,000
10,000
7
0.70
1,05,000
7,000
12,60,000
84,000
TOTAL 4,64,500 55,74,000
37
Wages & Salary Distribution
Sr.
No. Particular Qty
Rate
P.M.
Total
P.M.
Total
P.Y.
1 General Manager 2 16,000 32,000 3,84,000
2 Sales Manager 5 10,000 50,000 6,00,000
3 Accountant 1 10,000 10,000 1,20,000
4 A/c Assistant 1 10,000 10,000 1,20,000
5 Clerk 2 8,750 17,500 2,10,000
6 Operator 4 8,750 35,000 4,20,000
7 Skilled Worker 20 2,500 50,000 6,00,000
8 Semiskilled
Worker
30 1,800 54,000 6,48,000
TOTAL 2,58,500 31,02,000
Add. Perquisite of 15% of
Pay
38,775 4,65,300
TOTAL 2,97,275 35,67,300
38
Utility
Sr. No. Particular Amount (P.M.) Amount (P.Y.)
1 Power 75,000 9,00,000
2 Water 10,000 1,20,000
TOTAL 85,000 10,20,000
Other Contingent Exp.
Sr. No. Particular Amount
P.M.
Amount
P.Y.
1 Postage & Telegram 40,000 4,80,000
2 Printing & Stationary 10,000 1,20,000
3 Repairs & Maintenance 25,000 3,00,000
4 Traveling Exp. 50,000 6,00,000
5 Transport Charges 50,000 6,00,000
6 Advertisement &
Publicity
40,000 4,80,000
7 Selling Exp. 60,000 7,20,000
8 Miscellaneous Exp. 15,000 1,80,000
9 Insurance 18,000 2,16,000
TOTAL 3,08,000 36,96,000
39
Total Working Capital
Sr. No. Particular Amount
(P.M.)
Amount
(P.Y.)
1 Raw Material
4,64,500 55,74,000
2 Salary & Wages
Distribution
2,97,275 35,67,300
3 Utility
85,000 10,20,000
4 Other Contingent Exp.
3,08,000 36,96,000
TOTAL 11,54,775 1,38,57,300
40
Total Capital Investment
Sr. No. Particular Amount
Rs.
A Fixed Capital
1,12,31,000
B Working Capital req. for 3
Months
(11,54,775 X 3)
34,64,325
TOTAL (A + B) 1,46,95,325
41
Means of Capital & It’s Allocation
Finance is key input of Production, distribution and development.
Therefore, it is defined as “LIFE BLOD” and “CONTROL POINT” of
any business economy. It requires raising of adequate funds at the
minimum cost & using them effectively in business. Source of finance,
therefore depends on size of firm, Nature of product, Production
Processor etc.
In Tappen Industries, I’m chairman (owner). I’m take 25% & 30%
Loan from IDBI & Other Bank respectively & 45% is my capital.
42
Capital Allocation
Sr.
No. Particular Amount
45% 25% 30%
Own
Capital
@12.%
I.D.B.I
@12.5 %
Bank Loan
@12%
1 Land
50,00,000 22,50,000 12,50,000 15,00,000
2 Building
45,00,000 20,25,000 11,25,000 13,50,000
3 Machinery &
Equipment
14,96,000 6,73,200 3,74,000 4,48,800
4 Pre & Pre-
Ope. Exp.
2,35,000 1,05,750 58,750 70,500
5 Working
Capital (req.
for 3 Months)
34,64,325 15,58,946 8,66,081 10,39,298
TOTAL 1,46,95,325 66,12,896 36,73,831 44,08,598
43
Interest provision
Sr. No. Particular Amount Interest
Rate Value of P.Y.
1 Own Capital
66,12,896 12% 7,93,548
2 IDBI Loan
36,73,831 12.5% 4,59,229
3 Bank Loan
44,08,598 12% 5,29,032
TOTAL 14,69,325 17,81,809
44
Cost of Production & Sales details
A. Details of Sale
Sr.
No.
Particular Qty Value
Per Unit
Amount
(P.M.)
Amount
(P.Y.)
1 Mobile Stove 14,000 155 21,70,000 2,60,40,000
B. Depreciation Scheme
Sr.
No.
Particular Value Depreciation
1 Building @ 12 % 45,00,000 5,40,000
2 Machinery &
Equipment @ 15 %
14,96,000 2,24,400
TOTAL 7,64,400
C. Cost of Production
Sr. No. Particular Amount
1 Yearly req. of W.C. 1,38,57,300
2 Total Interest on Capital 17,81,809
3 Total Depreciation. 7,64,400
TOTAL 1,64,03,509
45
Break Even Point Analysis
The narrow interpretation of the term Break Even Analysis refers
to a system of determination of that level of actively where total cost
equals its total selling price & the broader interpretation refers to that
system of analysis, which determine the probable profit at any level of
activity.
Break Even Analysis is also known as CVPA i.e. Cost volume &
Profit Analysis. It is that level of sales which is necessary to cover all
fixed cost but also evaluate the profitability at various levels of sales
before Break Even Point & after Break Even Point.
BEP is the situation of “No Profit No Loss’. This is the ideal
situation for the firm. If the firm exceeds its sales beyond BEP, Profit
shall occur to business & if sales are below BEP, Loss shall be suffered
by the business.
46
BEP may be found using the following Formula:
Contribution = Sales – Variablr Cost
= 2,60,40,000 - 1,38,57,300
=1,21,82,700
BEP = Fixed Cost X 100
Cotribution
= 97,21,000 X 100
1,21,82,700
= 79.79%
47
Final Accounts
Projected trading account of tappen indudustry For
2012-13
Particular Rs. Particular Rs.
To raw
material
Gross profit
55,74,000
2,04,66,000
By sales 2,60,40,000
2,60,40,000 2,60,40,000
48
Projected P & L account of tappen indudustry For
2012-13 Prt. Rs. Par. Rs.
To advertising
exp.
Depreciation
Insurance
Int. on bank loan
Salary to
employees.
Repair &
maintainance
Miscellaneous
exp.
Postage & stamp
duty
Printing &
Stationary exp.
Utilities
Income tax
Net Profit
4,80,000
7,64,400
2,16,000
5,29,032
35,67,300
3,00,000
1,80,000
4,80,000
1,20,000
2,35,000
10,20,000
33,72,772
92,01,496
By,
Gross profit
2,04,66,000
2,04,66,000 2,04,66,000
49
Projected Balance sheet of tappen indudustry For
2012-13 Particular Rs. Particular Rs.
Capital amount
Capital 66,12,896
Profit 92,01,496
Bank loan
IDBI 36,73,831
+int. 4,59,229
Oth. Banks 44,08,598
+ int. 5,29,032
1,58,14,392
41,33,060
49,37,630
Fixed assets
Land
bulding
Machinaries
Preliminary & Pre-
Op. Exp
Bills receivable
Om traders
Shree entprise
Cash at bank
Cash at hand
50,00,000
45,00,000
14,96,000
2,35,000
45,00,000
30,00,000
30,00,000
31,54,082
2,48,85,082 2,48,85,082
50
Projected trading account of tappen indudustry For
2013-14
Particular Rs. Particular Rs.
To raw
material
Gross profit
60,74,000
2,05,66,000
By sales 2,66,40,000
2,66,40,000 2,66,40,000
51
Projected P & L account of tappen indudustry For
2013-14 Prt. Rs. Par. Rs.
To advertising
exp.
Depreciation
Insurance
Int. on bank loan
Salary to
employees.
Repair &
maintainance
Miscellaneous
exp.
Postage & stamp
duty
Printing &
Stationary exp.
Utilities
Income tax
Net Profit
4,00,000
7,64,400
2,16,000
5,29,032
40,67,300
3,00,000
1,85,000
4,80,000
1,20,000
2,35,000
11,20,000
33,72,772
87,76,496
By,
Gross profit 2,05,66,000
2,05,66,000 2,05,66,000
52
Projected Balance sheet of tappen indudustry For
2013-14 Particular Rs. Particular Rs.
Capital amount
Capital 66,12,896
Profit 87,76,496
Bank loan
IDBI 36,73,831
+int. 4,59,229
Oth. Banks 44,08,598
+ int. 5,29,032
1,53,89,392
41,33,060
49,37,630
Fixed assets
Land
bulding
Machinaries
Preliminary & Pre-
Op. Exp
Bills receivable
Om traders
Shree entprise
Cash at bank
Cash at hand
50,00,000
45,00,000
14,96,000
2,45,000
45,00,000
30,00,000
50,00,000
32,56,787
2,44,60,082 2,44,60,082
53
Projected trading account of tappen indudustry For
2014-15
Particular Rs. Particular Rs.
To raw
material
Gross profit
70,74,000
1,99,66,000
By sales 2,70,40,000
2,70,40,000 2,70,40,000
54
Projected P & L account of tappen indudustry For
2014-15 Prt. Rs. Par. Rs.
To advertising
exp.
Depreciation
Insurance
Int. on bank loan
Salary to
employees.
Repair &
maintainance
Miscellaneous
exp.
Postage & stamp
duty
Printing &
Stationary exp.
Utilities
Income tax
Net Profit
5,00,000
7,64,400
3,16,000
5,29,032
45,67,300
3,10,000
1,85,000
4,80,000
1,50,000
2,40,000
11,20,000
33,72,772
1,15,42,066
By,
Gross profit 1,99,66,000
1,99,66,000 1,99,66,000
55
Projected Balance sheet of tappen indudustry For
2014-15 Particular Rs. Particular Rs.
Capital amount
Capital 66,12,896
Profit 1,15,42,066
Bank loan
IDBI 36,73,831
+int. 4,59,229
Oth. Banks 44,08,598
+ int. 5,29,032
1,81,54,962
41,33,060
49,37,630
Fixed assets
Land
bulding
Machinaries
Preliminary & Pre-
Op. Exp
Bills receivable
Om traders
Shree entprise
Cash at bank
Cash at hand
50,00,000
45,00,000
14,96,000
2,45,000
45,00,000
30,00,000
50,00,000
32,56,787
2,72,25,652 2,72,25,652
56
List of supplier of machinery & raw materials
1. Suppliers of Machinery
(I) M/s Perfect Machine Tools Co.
Sir P.M. Road,
Bombay – 400 007
(II) M/s Jeet Machine Tools Corporation
Shardanand Marg,
Delhi – 110 006
2. Suppliers of Raw Materials
(I) M/s PD Tools Pvt. Ltd.
Noida Marg,
Delhi – 110 005
(II) M/s Star Tools Corporation
Gandhi Road,
Bangalore
57
Future plans
Generally, Management needs planning because it is the first step
of any organization. An organization starts with lots of future plans.
“Tappen Industries” also applies the same thing. The Tappen
Industries will starts with small scale unit. But with innovative
planning’s. The first & basic plan is that the firm will try to earn in
“Higher Profit with best lower cost of Production”. The second thing is
that to increase consumer demand & needs by providing them Maximum
satisfaction at the Minimum possible rate with good qualitative Product.
And last but not in list, If product get good response from ultimate
consumer them unit introduce some new and effective scheme and also
cover the media for Advertisement purpose.
58
Risk factors
When any industry starts, there are many advantages along with
risk factors.
Risk factor means the factors which hinders growth &
development of the companies. These factors cause challenge of threats
to the company or its product. Therefore, Cure should be taken of there
factors, some of the risk factors, which may be arise here, are as under.
In the very first year production might be less than expected due to
new organization.
Increasing competition may become challenge in the future. But if
we are proactive enough them we can face the challenge.
Changes in Govt. policy may affect profitability of the firm.
The fluctuations of pricing pattern of change in pricing of product.
The partners of the project are first generation entrepreneur with no
specific experience in the industry.
59
Conclusion
In the product project report on Tappen Indu., I have
discussed all financial data and other relevant information.
The market of Tappen Indu. is expanding its demand for
the product is increasing day by day. The return in this
business is also satisfactory.
At last it can be said that future of this product is very
bright.
With the expectation of high profitability and good
completing of high is assumed that it would be the perfect
product to be manufactured in today's environment.
60
BIBLIOGRAPHY
Reference Books
Desai Vasant, Project Management,
2nd
Edition, 1999, Himalaya Publishing House.
Sharma Ravi. K. & Gupta Shashi K, Finance Management,
4th Edition 2003-04, Kalyani Publishers
Kotler Philip, Marketing Management, Prentice hall of India, 11th
Edition 2004, Himalaya Publishing house.