ORGANIZATION BEHAVIOUR AND HUMAN RESOURCE

DYNAMICS-2
HRMM504
HRIS

Submitted To – TANYA NAGPAL

Submitted by:- Sumit Kumar
Registration No.-12113434
Section –Q2146

(Master of Business Administration)

MITTAL SCHOOL OF BUSINESS

 m Silk
Siyaram Silk Mills, Ltd, also known as Siyaram's and as SSM, is an Indian blended
fabric and garment-manufacturer, with an associated chain of retail outlets and branded
showrooms. Siyaram's was incorporated in 1978, and is headquartered in the Kamala Mills
compound, Lower Parel, Mumbai. Siyaram Silk Mills Ltd (SSM) is part of the Siyaram
Poddar Group, which also comprises Balkrishna Industries Ltd and Govind Rubber Ltd, all
listed companies at Bombay Stock Exchange. SSM is a small cap company with a market cap
of Rs 936.75 Cr.

FIXED COST OF THE COMPANY FOR 3 YEARS. (2019,2020 ,2021)

Fixed cost refers to a cost that does not change with an increase or decrease in the number of goods or
services produced or sold. Fixed costs are expenses that have to be paid by a company, independent of
any specific business activities.The fixed costs of page industries are been identified from
annual report from 2020-2021 and 2020-2019. Rent, insurance, asset depreciation, audit fees,
rates and taxes.

Amount Amount Amount

(2018- (2019- (2020-
Particulars 2019) 2020) 2021)

Insurance 250.12 281.60 340.54

Dividend paid 313.01 1290.50 783.22
Rent 1764.55 605.37 150.21
Audit fees 36.09 43.92 43.49
rates and taxes 313.01 205.29 73.81
Total Fixed Cost 2676.78 2426.6 1391.27

VARIABLE COST OF COMPANY FOR 3 YEARS. (2019,2020,2021):

A variable cost is a corporate expense that changes in proportion to how much a company produces or
sells. Variable costs increase or decrease depending on a company's production or sales volume they
rise as production increases and fall as production decreases. Below data are taken from the annual
report for the year 2020-2019, 2021-2020
 Particulars Amou Amou Amou
nt nt nt
(2018- (2019- (2020-
2019) 2020) 2021)

Cost of Raw materials 15457.53 16064.55 15457.53

Factory power and fuel 6048.17 5563.49 5265.55
Repairs 2720.43 1513.39 9.47
2)COST Selling and distribution 8304.53 8012.00 1326.61 SHEET
Depreciation 6226.32 7303.54 6116.90
FOR THE
Total Variable Cost 38756.95 38456.97 28176.06
CALCULATION OF PRIME COSTS, WORK COSTS, COGS AND
COST OF SALES.

Amount Amount Amount

(2018- (2019- (2020-
Particulars 2019) 2020) 2021)

Opening Stock of Raw Material 43106.72 42217.19 42980.56

Purchase of Raw materials 15457.53 16064.52 8571.08
Closing stock of Raw Materials (42217.19) (42980.56) (25489.97)
Sales of material scrap 113.36 134.49 85.41
Raw Materials Consumed 64904.55 69017.75 37389.08
Direct Wages 18116.35 17653.82 11189.16
Processing & Labour charge 16550.22 14795.53 27990.38
PRIME COST  116031.54  116902.74  102715.7
Factory Rent 1764.08 605.37 150.21
Factory power and fuel 6048.77 5563.49 4205.95
Repairs 2720.43 1513.39 1253.21
Factory insurance 250.12 281.60 340.54
Sales of Factory scrap _ _ _
Opening Stock of WIP 5712.57 4266.62 5219.59
Closing stock of WIP 4266.62 5219.91 4866.25
Works cost 128260.29 123913.3 77677.17
Office and Administration
Overheads      
Asset depreciation 7303.54 6022.93 5144.36
Audit fees 36.09 43.92 43.49
Other Office Expense 2637.42 1843.90 784.86
Cost of production 138237.34 131829.75 114991.98
Opening stock of Finished Goods 22436.06 24213.87 26122.15
Closing Stock of Finished Goods (24213.87) (26122.15) (10097.96)
Cost of Goods Sold 136459.53 77677.17 131016.17
Selling and Distribution      
Sales Promotion 2099.62 2624.57 593.72
Advertisment 6204.91 5387.43 732.89
Cost of Sales 144764.06 85688.17 132342.78
Profit 10116.44 7168.99 534.25
Sales 154880.5 92857.16 132877.03

1)Prime costs is calculated raw materials consumed with addition to direct labour and found values in
2016,2015 and 2014.

2) Work cost is calculated Prime cost + Sum of all factory overheads.

3)Cost of Production for all the years is calculated as: Cost of Production = Factory cost + Office and
Administration Overheads.

4)Cost of Sales or Total Cost for all the years of page industries is calculated as: Total Cost = Cost of
production + Selling and Distribution Overheads.
Particulars Amou Amount
nt (2020-
(2019- 2021)
2020)

Variable Cost 38456.99 28176.05

Profit 7168.99 534.25
Sales 92857.16 132877.22
PV Ratio 58 78.79

4)BREAK EVEN POINT

The breakeven point is calculated by dividing the fixed costs of production by the price per
unit minus the variable costs of production. The breakeven point is the level of production at
which the costs of production equal the revenues for a product. In the year 2020 the break
even point was 41.83 and in the year 2021 the break even point was 17.83.

Particulars Amou Amou

nt nt
(2019- (2020-
2020) 2021)

Fixed Cost 2426.6 1391.27

PV Ratio 58 78.79
 BEP 41.83 17.83

5)MARGIN OF SAFETY
It refers to the difference between actual sales and break-even point. Managers can utilize the
margin of safety to know how much sales can decrease before the company or a project
becomes unprofitable. In the year 2020 the margin of safety was 123.60 and in the year 2021
the margin of safety was 6.78

Particulars Amou Amou

nt nt
(2019- (2020-
2020) 2021)

Profit 7168.99 534.25

PV Ratio 58 78.79
Margin of Safety 6.78