A PRODUCT PROJECT REPORT ON

INDEX
SR. NO 1 2 3 4 5 6 7 8 9 PARTICULARS Introduction Project at Glance Organizational Structure Justification of Location Product Details Market Potential Raw Materials Machines Manufacturing Process PAGE.N O

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Production Capacity Schedule Staff and Labour Details Financial Details Cost of Production Total Working Capital Requirement Total Project Fund Sources of Finance Interest on Borrowed Capital Depreciation Annual Cost of Production Sales Forecast Break Even Analysis Cost of Capital Return on Investment Profitability Analysis

25 26 27 28

Projected Operating Statement Projected Cost Sheet Projected Balance Sheet Particulars Consumed of Raw Material

29 30 31 32 33 34 35 36

Particulars of Finished Goods Schedule for Fixed Assets Schedule for Factory Overhead Schedule for Selling and Administrative Overhead Risk Factors Name and Address of Raw Material Suppliers Name and Address of Machineries Supplier Disclosure of Significant Accounting Policy

INTRODUCTION
The industrial structure of India can be classified into three main groups ; they are capital goods, consumere goods & small scale sectors . the small scale industries can

further be subdivided into village or cottage industries & modern small scale industry . The village / cotton industries produce traditional commodities like handloom clothes & other necessary products ,etc. The modern small scale industries on the other hand produce non-trditional commodities like machine tools, radio sets, automobiles parts , components , etc.

According to the industrial policy paper of 1956, SSI ensure more equitable distribution of national income & they facilities an effective mobilization of resources, capital & skills. Some of the problems that unplanned urbanization tends to create will be avoided by the establishment of small centers of industrial production all over the country

To over come such problems , we now a days find some firms co-existing with the large firms in the business world.

PROJECT AT A GLANCE

Name of unit

:- vishal petrol saver

Product Address of communication

:- petrol saver :- Radhe Kishana 150ft ring road, Rajkot-05 Gujrat (India)

Forms of Organisation Locaton of the unit

:- Private sector :- GIDC industrial area Shaper veraval industrial area , Rajkot :- VICKY.J.VASANI :- 70,00,000

Owner name Cost of Project

ORGANISATION STRUCTURE
General Manager

Production Mrkt

R&D

Accounts &

Personnel &

Manager Manager

manager

Finance Manager Manager

Admin.

Dispatch Mrkt Officer Officer

R&D Officer

Accounts & Finance Officer

Personnel & Admin.

Officer Seniour Officer

Procurement Mrkt Prod. Mger Executive Peon Peon

R&D Executive

Chief Accountant

Peon

Asst. Accountant

Clerk

Peon

Peon

JUSTIFICATON OF LOCATION

Location is the prime factor which has to be considered for starting a new business. The location should be decided by considering all factors & making independent analysis of each variable separately through cost benefit analysis & the location should either be near to the market (i.e. customer) or where the raw material is easily available & in the adequate quantity.

1). Raw Material :The major component or major input which is an inevitable part of any product process is , raw material. Raw Material at proper time, at a reasonable cost , in right quality directly affects the price of the final product.

In case of this industry , the basic Raw material is choronated hydrocarbon components , lubricating oil & also ferrous, calcium , aluminium & magnesium which are available from the surrounding areas of the state.

2). Labour :-

Man power input i.e. labour holds importance after the raw material . cheaper & effective labour availability enriches the firm & thus , it is very crucial in nature. In this case ,technically skilled & unskilled labour is required which is easily available from the nearby areas.

3). Water :The purposed product does not highly depend upon water supply but still there is requirement of water at some or the other extent & that is easily available from our own sources & water supply by municipal corporation.

4). Market :The main aim of every product is to get potential market & proximity to market is also one of the most considerable variables . Due consideration to the variables will add to the prosperity of the firm & ultimately will help in attaining consumer satisfaction.

The market for petrol saver is definitely going to increase because of the peaking hights of the petrol ,

increased day by day. It has got opportunities with in & abroad the county.

5). Transportation :Speedy transport facilities are needed for the regular & timely supply of raw material & finished goods. It should be done keeping in mind the requirement & its nature . This also includes controlling supply according to change in demand . As far as our product is concerned , we easily get road transport & rail transport facility, & as far as export is concerned, our state process kandla port which can be taken into use if necessary.

6). Miscellaneous factors :-

We have selected our location after taking into account the following factors :-

1) Availability of infrastructural facilities

2) Availability of banks or financial institution

3) Availability of bodies such as hospital dispensaries, post offices, etc enjoyed by the community.

10

PRODUCT DETAILS
1). Product characteristics :The principle of preparation of this product is to mix together the basic raw material to let them undergo the chemical process . This would result into a dilute which could also be conveted into dried form after passing it through the dryer. This can be shaped into tablets or capsules also. This dilute substance / tablets will have to be added to the petral tank to any machinery where petrol is used as a fuel to get the unexpected result of saving petrol to 18% & it also ensure drastic reduction of exhaust & noise pollution above 60%. It also cleans carburetter & make the engine performance more effective. It is harmless to engine components & improves pick-up .

2). Product Properties :- Non inflammable - Harmless to skin - Non poisonous - Non explosive

IT IS

11

- Does not mix in water - Stain free - Evaporates on temperature 63 degree

calcious -75 degree calcious

3).Product abstract material :This has been developed by bringing together, non-inflammable & non-explosive liquids which are blended with fossil fuel & mixed with appropriate quantity of catalysis an essential ingredients of synprol process.

4). Product uses :This product is a complementary product therefore its use depends upon petrol & so this can be used wherever / in machinery / engine where petrol is utilized as fuel .

12

5). Product benefits ; Saves petrol over 18% Reduces exhaust & noise pollution Improves pick-up Frequency of recharging the electic battory & voltage dripping will reduce considerably Reduces wear & tare.

13

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. Now let us have a look over the figures of on road vehicles which have maximum usage of petrol and that is the potential market of this product.

Sr. Class no vehicles 1). 2). 3). 4). 5). 6).

of At the end of march 2003 Motor cycle 13,25,82 6 Auto 99,918 rickshaws Jeep 33,700 Motor cars 3,41,584 Passenger 1,82,500 buses Goods 1,19,461 vehicles

As on 31st oct 2005 2004 40,64,86 9 2,30,664 84,117 5,38,549 2,50,550 3,30,911 2005 47,025,52 9 2,56,375 90,263 6,41,950 3,45,660 5,52,625 2005 50,64,77 3 2,86,900 1,08,227 9,52,959 4,58,320 6,75,150

14

Taking a keep observation over the figures it can be said that the vehicles so specified would demand much petrol and if at once this product is offered to the market then it will be able to save more petroleum which is becoming rather an Exhaustive resource.

Bright prospects & promising future :Petrol being an exhaustive resource has started giving intimation about its non-availability in future since last decade. The petrol saver shall be used extensively so as to use petrol at optimum level. Therefore there will be no problem of selling this product because of its proposed increasing demand. But in future there is a greater possibility of the competitors to enter into this market. So we will have to be more cautious & alert regarding the study of business environment & market environment.

15

RAW MATERIAL DETAILS

The basic raw material of this product is fossil fuel. They constitute choronated Hydrocarbon components, lubricating oil, ferrous, calcium, aluminium & magnesium. The above raw material is available form the area stated below

Bharuch Surendranagar Kerala&lakshwadee

:- all chemicals :- all chemicals :-calcium carbonate ,calcium

Madhya Pradesh , Chhatisgarh, goa Maharashtra, Karnatak :- magnesium

16

MACHINARY REQUIREMENT
The manufacturing of this product requires the following type of machinery

PARTICULARS Equilization tank Shield drier Primary system Filtration system Boiler Discharge sump Solid waste storage pit with imperious lining

NO . OF . UNITS 1 2 1 1 1 2 1

MANUFACTURING PROCESS

17

The principle of this product mix together the basic raw material to let them undergo the chemical process. This would result into a dilute which could also be converted into dried form after passing it through the dryer. This can be shaped into tablets or capsules also. This dilute substance / tablets will have to be added to the petrol tank to any machinery where petrol is being used to get the unexpected result of saving petrol to 18% & it also ensure drastic reduction of exhaust & noise pollution above 60%. It also cleans the carburetor & makes the engine performance more effective. It is harmless to engine components & improve the pick-up. It is non-flammable harmless to skin non poisonous & non explosive. Thats why it can be easily used in petrol n due to this it is easily mixed with petrol & covers the layer of the engine to give you a better mileage & pick-up. But it should never mix with water and it will be evaporates on temperature 63 degree Celsius 75 degree Celsius. This has been developed by bringing together, non-inflammable & non-explosive liquids which are blended with fossil fuel & mixed with appropriate quantity of catalysts an essential ingredient of synprol process.

18

PRODUCTION CAPACITYSCHEDULE

The production capacity of this establishment plant will be 800 lts. Per day.

The schedule for production would be as follows.

There would be a single shift i.e 8:00am to 8:00pm (including lunch break)

The whole production process would be carried out simultaneously & the post production process will also be speedily carried out.

19

STAFF & LABOUR DETAILS

Factory staff Skilled workers Semi skilled workers Unskilled workers Manager Supervisor Clerk Accountant Salesman Watchman 3 5 7 Administrativ e staff 1 2 1 1 1 1

20

FINANCIAL DETAILS

LAND
SR.NO 1. PARTICULAR LAND SQ.FT 1500 PRICE PER SQ.FT 600 TOTAL 9,00,000

BUILDING
SR.NO 1. PARTICULAR BUILDING SQ.FT 2500 PRICE PER SQ.FT 300 TOTAL 7,50,000

TOTAL
TOTAL 4000 900 16,50,000

PLANT & MACHINERY

21

SR PARTICULAR .N O 1. EQUILISATION TANK 2. 3. 4. 5. 6. 7. SHIELD DRIER PRIMARY CLARIFICATION FILTERATION SYSTEM BOILER DISCHARGE SUMPS SOLID WASTE STORAGE PIT TOTAL

NO OF UNITS 1 2 1 1 1 2 1

PRICE PER UNIT 2,00,00 0 2,00,00 0 1,50,00 0 1,60,00 0 5,00,00 0 3,00,00 0 2,68,00 0

TOTAL 2,00,000 4,00,000 1,50,000 1,60,000 5,00,000 6,00,000 2,68,000 22,78,000

OTHER FIXED ASSET

PARTIDCULAR FURNITURE & FIXTURE COMPUTER ELECTRIC FITTING TELEPHONE TOTAL NO OF QTY 2 2 TOTAL 8,72,000 70,000 1,20,000 10,000 10,72,000

TOTAL FIXED ASSETS

SR.NO PARTICULAR 1. LAND & BUILDING 2. MACHINARY & EQUIPMENTS 3. OTHER FIXED ASSETS TOTAL TOTAL 16,50,000 22,78,000 10,72,000 50,00,000

22

COST OF PRODUCTION RAW MATERIAL

SR.NO 1. 2. 3. 4. CHEMICALS CALCIUM MAGNESIUM ALUMINIUM FERROUS TOTAL RS PER K.G 120 150 10 20 QTY REQ 12000 18000 15000 1800 AMOUNT 14,40,000 27,00,000 1,50,000 36,000 42,00,000

STAFF & LABOUR SALARY

SR.NO 1. 2. 3. 4. 5. 6. 7. PARTICULAR MANAGER ASS.GEN MANAGER DEPT MANAGER OFFICER (DEPT) STORE KEEPER PEON SALES PEOPLE TOTAL SALARY 1,20,000 96,000 84,000 48,000 24,000 14,400 30,000 NO 1 1 5 5 2 2 4 AMOUNT 1,20,000 96,000 4,20,000 2,40,000 48,000 28,800 1,20,000 10,72,800

UTILITIES
PARTICULAR DIESEL 0 ELECTRICITY 3,50,000 PER YEAR 1,50,00

23

TOTAL

5,00,000

OTHER EXPENSES
SR.NO 1. 2. 3. 4. 5. 6. 7. 8. 9. PARTICULAR POSTAGE & STATIONARY TRANSPORTATE EXPENSE INSURANCE REPAIRS & MAINTAINANCE SALES EXPENSE TELEPHONE & ADVERTISING EXPENSE ELECTRICITY EXPENSE WATER EXPENSE UTILITIES TOTAL AMT 9,600 96,000 48,000 24,000 30,000 1,08,000 1,20,000 48,000 1,32,000 6,15,600

TOTAL WORKING CAPITAL

SR.NO 1. 2. 3. 4. PARTICULAR Raw Material Salary & wages Utilities Other expenses Total AMOUNT 42,00,000 10,72,800 1,32,000 4,83,600 57,56,400

24

TOTAL CAPITAL INVESTMENT

SR.NO 1. 2. 3. PARTICULARS TOTAL FIXED ASSETS TOTAL WORKING CAPITAL REQ CASH IN HAND AMT 50,00,000 14,39,100 5,60,900

TOTAL

70,00,000

SOURES OF FINANCE
OWN CAPITAL
PARTICULAR VICKY.J.VASANI %OF TOTAL CAPITAL 50% AMT 35,00,000

BORROWED CAPITAL
PARTICULAR ICICI BANK %OF TOTAL CAPITAL 50% AMT 35,00,000

TOTAL CAPITAL INVESTED

PARTICULAR TOTAL TOTAL AMT 70,00,000

25

INTEREST ON CAPITAL
SR. NO 1 DETAILS OWNER CAPITAL VICKY.J.VASANI (50%) BORROWED CAPITAL ICICI BANK (50%) TOTAL LOAN AMT INTEREST RATE 35,00,000 8% INTERST AMOUNT 2,80,000

35,00,000 LTD 70,00,00 0

12%

4,20,000

7,00,000

DEPRECIATION
SR.NO 1. 2. 3. 4. PARTICULAR BUILDING @ 13% MACHINERY & EQUIPMENTS @ 15% OTHER FIX ASSETS @ 15% COMPUTERS @ 40% TOTAL AMT 97,500 3,71,700 1,50,300 28000 6,47,500

26

ANNUAL COST OF PRODUCT

SR NO 1. 2. 3. 4. 5. PARTICULAR RAW MATERIAL DEPRECIATION STAFF & LABOURS SALARY OTHER EXPENSES & UTILITIES INTEREST ON CAPITAL TOTAL TOTAL 42,00,000 6,47,500 10,72,800 6,15,600 7,00,000 72,35,900

SALES FORECAST
YEAR 1 2 3 4 5 UNITS PER ANNUM 8,67,305 9,25,125 9,25,125 10,40,766 11,56,407 RATE PER UNIT 20 20 25 25 30 SALES (RS) 1,73,46,100 1,85,02,500 2,31,28,125 2,60,19,150 3,46,92,216

27

FIXED COST
SR. NO. 1. 2. 3. 4. PARTICULARS Depreciation Interest on Capital Salary (50%) Other exp & utilities (30%) TOTAL AMOUNT 6,47,500 7,00,000 5,36,400 2,41,800 21,25,700

FIXED COST :- TOTAL FIXED COST TOTAL NO OF UNITS 21,25,700 8,67,305 TOTAL FIXED COST = 2.45 PER UNIT

28

VARIABLE COST
SR. NO. 1 2 3 PARTICULARS Raw Material Salaries (50%) Other exp and utilities TOTAL AMOUNT 42,00,000 5,36,400 6,15,600 55,93,800

VARIABLE COST = TOTAL VARIABLE COST TOTAL NO OF UNITS 55,93,800 8,67,305 VARIABLE COST = 6.45 PER UNIT TOTAL COST = FIXED COST + VARIABLE COST = 2.45 + 6.45 = 8.90 PER UNIT

29

BREAK EVEN ANALYSIS

Break-even point is that point of achieving, where total revenue and total expenses are equal. It is the point of zero profit. If the sales exceed BEP the business will earn profit and if it decreases from BEP the business will incur loss. Thus, BEP may take, as the minimum level of production and sales and company must attain in order to be economically viable.
1)

Contribution per unit = sales price variable cost = 20-6.45 = 14.11 per unit

2)

B.E.P (in units) =

Total fixed cost Contribution per unit 21,25,700 14.11

B.E.P.= 1,50,625 (bottles)

3)

B.E.P (in Rs) = B.E.P(units) X sales price per unit 1,50,652 X 20 B.E.P.=30,13,040 Rs

30

4) units

B.E.P in (%)

Total fixed cost

X capacity

Total f.c + profit(EBIT) 21,25,700 X 75 21,25,700+11,55,000 15,94,27,500 32,80,700 B.E.P in (%) = 48.60%

LOAN REPAYMENT SCHEDULE

YEAR 1 2 3 4 5 6 7 O/P BAL. 35,00,000 31,50,000 28,00,000 24,50,000 21,00,000 17,50,000 14,00,000 INSTALLMENT 3,50,000 3,50,000 3,50,000 3,50,000 3,50,000 3,50,000 3,50,000 CL. BAL. 31,50,00 0 28,00,00 0 24,50,00 0 21,00,00 0 17,50,00 0 14,00,00 0 10,50,00 0 INTERST 4,20,000 3,78,000 3,36,000 2,94,000 2,52,000 2,10,000 1,68,000

31

8 9 10

10,50,000 7,00,000 3,50,000

3,50,000 3,50,000 3,50,000

7,00,000 3,50,000 -----

1,26,000 84,000 42,000

AVERAGE COST OF CAPITAL

SR.NO PARTICULAR 1 Owned Capital 2 Borrowed Capital Total CAPITAL 35,00,00 0 35,00,00 0 70,00,00 0 RATE 8% 12% 20% INTEREST 2,80,000 4,20,000 7,00,000

Average Cost Of Capital = Interest X 100 Capital = 7,00,000 X 100 70,00,000 Average cost of capital = 10 %

RETURN ON INVESTMENT
Return on investment = EBIT Cost of product X 100

32

= 11,55,000 X100 70,00,000 Return on investment = 16.5%

PROFITABILITY AND PROFITABILITY ANALYSIS

PARTICULAR Sales Less Cost of Production EBIT Less Interest EBT Less Tax EAT

AMOUNT 1,73,46,100 1,61,91,100 11,55,000 7,00,000 4,55,000 86,500 3,68,500

GROSS PROFIT RATIO

GPR = Gross Profit / Sales X 100 = 14,36,000 / 1,73,46,100 X 100 = 8.27%

NET PROFIT RATIO

NPR = Net Profit / Sales X 100

33

= 6,06,500 / 1,73,46,100 X 100 = 3.50%

FIXED ASSET TURNOVER RATIO

FATR = Total Fixed Asset / Sales X 100 = 15,00,000 / 1,73,46,100 X 100 = 8.64%

TAX SLAB
PATICULAR EBT Less Less Less AMOUNT 4,55,000 1,00,000 3,55,000 50,000 3,05,000 1,00,000 2,05,000 Total Taxable Amt. RATE AND TAX AMT NIL 5000 @ 10% 20,000 @ 20% 61500 @ 30 % 86,500

34

PROJECTED OPERATING STATEMENT

PARTICULAR Sales COST OF OPERATION Raw material Utilities Labour ADD: Op. Stock of raw material LESS: Cl. stock of raw material ADD: Op. stock of finished goods LESS: Cl. stock of finished goods TOTAL COO GROSS PROFIT YEAR 1 1,73,46,10 0 42,00,000 6, 15,600 10,72,800 ------------27,00,000 27,00,000 27,00,000 2,14,82,10 2,27,30,30 0 0 27,00,000 27,00,000 3,70,08,12 5 YEAR 2 1,85,02,50 0 60,00,000 2,55,000 10,72,800 --------YEAR 3 2,31,28,12 5 90,28,000 4,80,000 10,72,000 ---------

35

(Sales Cost of Operation) INDIRECT EXPENSES Factory expenses Administrative expenses Total Indirect Expenses EBIT: (Gross Profit Indirect exp) LESS: Interest on Borrowed Capital EBT: LESS: TAX EAT:

14,36,000

12,27,800

13,50,000

5,67,000 90, 000 5,73,000 6,57,000 8,63,000 4,20,000 4,43,000 86500 3,56,500 6,09,100 3,78,000 2,31,100

4,83,600 89,400

5,77,729 1,94,651 5,50,700 7,99,300 4,75,200 3,24 ,100 73,780 2,50,320

65,000 1,66,150

PROJECTED COST SHEET

PARTICULAR Raw Material Consumed Purchase Less: Cl. Stock Add: Direct wages Utilities PRIME COST (A) Factory Cost Add: Repairs Managers Salary Supervisors Salary Watchmans Wage Depreciation on Machines Depreciation on Building TOTAL FACTORY COST (B) Administrative Expenses Add: Accountants Salary YEAR 1 1,73,46,100 --5,16,000 5,00,000 1,83,62,100 75,000 60,000 72,000 24,000 2,00,000 2,25,300 6,56,300 YEAR 2 1,85,02,500 --5,16,000 5,50,000 1,95,68,500 85,714 60,000 72,000 24,000 2,00,000 2,25,300 6,67,014 YEAR 3 2,31,28,125 --5,16,000 5,80,000 2,42,24,125 96,429 60,000 72,000 24,000 2,00,000 2,25,300 6,77,729

60,000

60,000

60,000

36

Clerks Salary Postage and Telegram Exp. Telephone Exp. Mis. Expenses Insurance Exp. Medical Exp. Professional Tax Legal Exp. Audit Fees Depreciation on Computer Depreciation on Other FA Interest on Owned Capital TOTAL ADMINISTRATIVE EXPENSES (C) COST OF PRODUCTION (A+B+C) Add: Op. stock of Finished Goods Less: Cl. Stock of Finished Goods COST OF PRODUCTION OF GOODS SOLD

24,000 25,000 35,000 25,000 90,000 50,000 1,000 20,000 36,700 16,000 39,000 2,80,000 11,50,700 2,01,69,100 ----28,76,000 1,55,63,100

24,000 28,571 40,000 30,571 1,02,857 57,143 1,143 30,000 41,943 16,000 50,000 2,80,000 12,91,085 2,15,26,599 28,76,000 28,76,000 1,64,07,686

24,000 32,143 45,000 32,143 1,15,714 64,286 1,286 25,714 47,186 8,000 39,000 2,80,000 12,23,472 2,87,73,201 28,76,000 28,76,000 2,04,01,326

Selling and Distribution Expenses Add: Salesmans Salary Transportation exp. Advertising exp. Traveling exp. COST OF SALES SALES PROFIT

60,000 45,000 75,000 50,000 1,57,93,100 1,73,46,100 15,53,000

60,000 57,143 91,429 57,143 1,66,73,401 1,85,02,500 18,29,099

60,000 64,286 1,02,857 64,286 2,06,92,755 2,31,28,125 24,35,370

37

PROJECTED TRADING ACCOUNT

YEAR 1
DR. PARTICULARS To Opening stock To Purchase To Direct Wages To Utilities To Gross Profit TOTAL AMT. ----60,00,000 6,15,600 5,00,000 61,36,000 2,00,46,10 0 TOTAL 2,00,46,10 0 PARTICULARS By Sales By Closing Stock CR. AMT. 1,73,46,10 0 27,00,000

YEAR 2
DR. PARTICULARS To Opening CR. AMT. 27,00,000 PARTICULARS By Sales AMT. 1,85,02,50

38

stock To Purchase To Direct Wages To Utilities To Gross Profit TOTAL

90,00,000 5,16,000 5,50,000 40,22,000 2,12,02,50 0

By Closing Stock

0 27,00,000

TOTAL

2,12,02,50 0

YEAR 3
DR. PARTICULARS To Opening stock To Purchase To Direct Wages To Utilities To Gross Profit TOTAL AMT. 27,00,000 1,57,76,00 0 5,16,000 5,80,000 46,28,000 2,58,28,12 5 TOTAL 2,58,28,12 5 PARTICULARS By Sales By Closing Stock CR. AMT. 2,31,28,12 5 27,00,000

39

PROJECTED PROFIT AND LOSS ACCOUNT

YEAR 1
DR. PARTICULARS AMT. To Repairs exp. 75,000 To Postage and Tele. Exp. 25,000 To Telephone exp. 35,000 To Transportation 50,000 To Mis. 25,000 Expenditure 80,000 To Advertising 90,000 exp. 50,000 To Insurance 1,000 To Medical exp. 20,000 To Professional 36,700 Tax 50,000 To Legal Exp. To Audit Fees 3,00,000 To Traveling exp. 4,80,300 To Salaries to employees 5,94,000 To Depreciation To Int. on 5,40,000 Borrowed Capital 10,55,20 To Loan 0 Installment Paid To Income Tax To Net Profit TOTAL 26,28,80 0 61,36,00 0 CR. PARTICULARS By Gross Profit AMT. 61,36,00 0

TOTAL

61,36,00 0

40

YEAR 2
DR. PARTICULARS AMT. To Repairs exp. 85,714 To Postage and Tele. Exp. 28,714 To Telephone exp. 40,000 To Transportation 57,143 To Mis. 28,571 Expenditure 91,429 To Advertising 1,02,857 exp. 57,143 To Insurance 1,143 To Medical exp. 22,857 To Professional 41,943 Tax 57,143 To Legal Exp. To Audit Fees 3,00,000 To Traveling exp. 4,80,300 To Salaries to employees 5,34,600 To Depreciation To Int. on 5,40,000 Borrowed Capital 4,15,776 To Loan Installment Paid To Income Tax To Net Profit TOTAL 11,36,81 0 40,22,00 0 PARTICULARS By Gross Profit CR. AMT. 40,22,00 0

TOTAL

40,22,00 0

41

YEAR 3
DR. PARTICULARS AMT. To Repairs exp. 96,429 To Postage and Tele. Exp. 32,143 To Telephone exp. 45,000 To Transportation 64,286 To Mis. 32,143 Expenditure 1,02,857 To Advertising 1,15,714 exp. 64,286 To Insurance 1,286 To Medical exp. 25,714 To Professional 47,186 Tax 64,286 To Legal Exp. To Audit Fees 3,00,000 To Traveling exp. 4,72,300 To Salaries to employees 4,75,200 To Depreciation To Int. on 5,40,000 Borrowed Capital 5,94,751 To Loan Installment Paid To Income Tax To Net Profit TOTAL 15,54,41 9 46,28,00 0 CR. PARTICULARS By Gross Profit AMT. 46,28,00 0

TOTAL

46,28,00 0

42

PROJECTED BALANCE SHEET

LIABILITIES CAPITAL Owned Capital SECURED LOAN ICICI Bank Ltd CREDITORS Pranav Trade Ltd TISCO Ltd Raj enterprise Ltd Net Profit TOTAL 3,72,616 5,51,425 -----26,28,800 81,86,841 8,72,613 ----3,45,140 11,36,810 6,13,490 ----10,12,514 15,54,419 35,00,000 31,50,000 28,00,000 YEAR 1 35,00,000 YEAR 2 35,00,000 YEAR 3 35,00,000

90,04,563 94,80,423

ASSETS
Land Building Machinery Furniture & Fixtures Electric Installation Telephone Computer Boundary, Walls ,Gates Production Dyes Troll and other eqp. DEBTORS Shreenathji Industries ShreeKrishna Enterprise Ram & Ram Pvt. Ltd. Kkassuma Eng. Pvt. Ltd Cash at Bank Cash in Hand Closing Stock TOTAL

YEAR 1
16,10,000 23,27,700 8,00,000 85,000 42,500 8,500 24,000 42,500 34,000 8,500

YEAR 2
16,10,000 21,02,400 6,00,000 70,000 35,000 7,000 8,000 35,000 28,000 7,000

YEAR 3
16,10,000 18,77,100 4,00,000 55,000 27,500 5,500 ----27,500 22,000 5,500

21,16,032 20,15,620 9,58,528 3,62,568 31,26,892 7,90,500 27,00,000 1,70,50,841

----10,214 10,56,713 8,01,406 51,86,400 10,51,430 27,00,000

3,59,321 10,12,121 12,54,612 ----50,45,619 11,49,150 27,00,000 1,56,00,423

43 1,53,14,563

QTY Op. stock Add: Purchase Less: Cl stock

YEAR 1 AMT ----1,73,46,100 -----

QTY

YEAR 2 AMT ----1,85,02,500 -----

QTY

YEAR 3 AMT -----2,31,28,125 -----

----8,67,305 ------

----9,25,125 -----

----9,25,125 -----

PARTICULARS OF RAW MATERIAL CONSUMED

PARTICULARS OF FINISHED GOODS

44

Particulars

YEAR 1 QTY AMT.

YEAR 2 QTY AMT.

YEAR 3 QTY AMT.

Op . balance Add: good manu. Less: Sales

----1,44,00 0 1,40,00 0 4,000

------9,72,00,00 0 9,45,00,00 0 27,00,000

4,000 1,60,00 0 1,60,00 0 4,000

27,00,000 1,80,000 1,80,000

4,000 1,80,00 0 1,80,00 0

27,00,000 12,15,00,000 12,15,00,000

Cl. Stock

27,00,000

4,000

27,00,000

SCHEDULE FOR WRITTEN DOWN VALUE OF FIXED ASSETS

PARTICULAR Gross Block Depreciation Net Block

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Land Building Machinery Furniture & Fixture Electric installation charges Telephone

16,10,00 0 22,53,00 0 10,00,00 0 1,00,000

16,10,00 0 22,53,00 0 10,00,00 0 1,00,000

-------------

----2,25,30 0 2,00,00 0

16,10,00 0 23,27,70 0 8,00,000 86,000

----15,000 --------7,500 1,500 16,000 42,500 8,500 24,000 42,500 34,000 8,500

50,000 Computer 10,000 Boundary, wall & gates Production Dyes Trolley and other eqp 40,000 50,000 40,000 10,000

50,000 ----10,000 40,000 50,000 6,000 40,000 10,000 ----1,500 --------7,500

SCHEDULES FOR FACTORY OVERHEADS

PARTICULARS Repairs Managers Salary Supervisors Salary Watchmans Salary Depreciation on Machinery AMOUNT 75,000 60,000 72,000 24,000 2,00,000

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Depreciation on Building FACTORY COST

2,25,300 6,56,300

SCHEDULES FOR AMINISTRATIVE OVERHEADS

PARTICULARS Accountants Salary Clerks Salary Postage & Telegram Exp. Telephone Exp. Mis. Expenditures Insurance Exp. Medical Exp. Professional Tax Legal Exp. Audit Fees Depreciation on Computer Depreciation on Other Fixed Asset Interest on Owned Capital TOTAL AMOUNT 60,000 24,000 25,000 35,000 25,000 90,000 50,000 1,000 20,000 36,700 16,000 39,000 7,29,000 11,50,700

SCHEDULES FOR SELLING OVERHEADS

PARTICULAR Salesmans Salary Transportation Exp. Advertising Exp. Traveling Exp. TOTAL AMOUNT 60,000 50,000 80,000 50,000 2,40,000

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RISK FACTORS
RISK is the biggest threat which ever entrepreneur has to look upon very seriously in order to safeguard the investment & there by earn profit. As far as this is concerned, owing to the current situation, there have started emerging some competitors which are proving to be threats for future. Therefore, it is very important to notice the risk factors in the environment in which the business works. It is again very important to notice the degree of competition in the existing market so as to make planning for future. This product as in the initial stage does not face high competition therefore the Risk factor for competition & market share is reduced.

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ADDRESS OF RAW MATERIAL SUPPLIERS

1) M/S. Vijay & co Kaliwara koti Surendranagar Dt. Rajkot 2) Shri D.T. balasania & co Godamle station plot, B/H. industrial Estate Lal road, Bharuch, Gujrat 3) Kalabadevi industrial estate Nr. Kalbadevi High Road, Mumbai 4) S.G.Pillai & Pillai co. Ltd Surakvarna Roa. Road Nr.Clwai Nallah. Block -603 Kerala,

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ADDRESS OF MACHINERY SUPPLIERS

1) Shri Guygon Forges Ltd. 36112, Estate, Moti Baug, Delhi. 2) M/s Shankar machine tools.ltd 36/18-court area, OMNI bldg near factory area Surendranagar
3)

M/s Siddhi prakash Engg. Work Pvt.Ltd Nr. Jagdish Tower, Nautambai industrial Estate Mumbai

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CONCLUSION
This product, has such characteristics which build the the power to explore new market boundaries. Proper planning & management. Will definitely up bring this product & hence will contribute at some or the other extent to the saving of ir-reversible & exhausting resource.

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