MITTAL SCHOOL OF BUSINESS

Course Code: ACCM507 Course Title: Financial Reporting &

Analysis II

Course Instructor: Gagandeep Singh Section: Q2248

Academic Task No. 1 Academic Task Title: Assessment

Max. Marks: 30 Marks Obtained:

Declaration:

I declare that this CA is my individual work. I have not copied it from any other students’ work or from
any other source except where due acknowledgement is made explicitly in the text, nor has any part been
written for me by any other person.

Evaluator’s Comments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of the

Assignment

Evaluator’s Signature and Date:

 PEER RATINGS

Registration Section Class Roll No. Name of Student PEER Rating

Number

12210725 Q2248 RQ2248A09 RISHAV GUPTA 10

1221126 Q2248 RQ2248 RAKSHIT 09

12211115 Q2248 RQ2248 SHIVAM THAKUR 09

12211226 Q2248 RQ2248 KISHAN KUMAR 09

12213057 Q2248 RQ2248 SHIVAM DHATWALIA 08

PRODUCT – A4 SHEETS

A4 papers is the standard copy paper sheet and can be used in most home and office printers. A4 sheets
have a width of 210 mm and a length of 297 mm. A4 paper comes in a range of paper weights ranging
from 75gsm² to 300gsm² with a variety of types including index paper, cover paper and text paper each
with their own unique properties including thickness, strength and feel. As well as printing in A4 formats,
most modern printers can also print on media of smaller sizes including A5 & A6. For the majority of
day-to-day printing tasks an A4 sized printer should be sufficient. A4 may be a paper size that's used for
a wide range of documents, as well as magazines, catalogs, letters and forms. A4 paper is that the size
most utilized in the globe. It’s used because the classic paper sheet all told industrial countries. Today, it's
used for all printing documents, letters, magazines, forms, bit notice, posters, catalogues, magazines, In
Engineering A4 size paper is that the mostly used as hard copy of drawing or document during a handy
way. It will be found in everyday life.

MARKET SURVEYS
 PRODUCT SPECIFICATION

Specifications
Size: A3,A4, 8.5*11, 8.5*14
Material: 100% virgin wood pulp
Color: White
Brightness: 102-104%
Samle: Free
Competive price white A4 paper 80 gsm

Item Copy Paper

Material 100% wood pulp
Size A4, A3, 8.5x11,8.5x14
Base Weight 80gsm, 75gsm, 70gsm
Whiteness 102-104%
Packing 500 sheets per ream, 5 reams per carton(box)
Load GSM A4 A3 8.5x11 8.5x14
Qty(20ft)
80gsm 8000 reams 4000 reams 8200 reams 6300 reams
75gsm 8200 reams 4100 reams 8500 reams 6500 reams
70gsm 8400 reams 4200 reams 8800 reams 6700 reams
Key performance No jam in photocopy machine

No double feed
Stay flat after copying
Leave no dust in the copy-machine
Nice appearance-white and clean
Nice touch-smooth and bulky
No see through-print both sides
Been developed for: Photocopy Machines, Laser Printers, Ink-jet
Printers, Fax Machines
 COMPETITOR ANALYSIS
A4 paper measures 210 x 297 millimeters and is the most widely used. In anything from Word docs to paper,
stationery may be printed on this device. All lasers and inkjet cartridges, and some mobile printing presses,
must be able to print in A4 size. For printing and Xeroxing, A4 paper is the most commonly used. The
publication is available in a wide variety of places, including offices of all kinds, hotels, retail establishments,
and academic institutions of all kinds.
Top 10 Leading A4 Size Paper Manufacturers in India
• Andhra Paper Ltd.
• Satia Industries Ltd.
• Emami Paper Mills Ltd.
• Tamilnadu Newsprint & Papers Ltd.
• JK Paper Ltd.
• West Coast Paper Mills Ltd. (SKB)
• Kuantum Papers Ltd.
• Ballarpur Industries Ltd.
• Seshasayee Paper & Boards Ltd.
• Kushal Ltd.

Top products of these manufacturers

Conclusion

We'll need to decide on the paperweight (in GSM, or grams per square meter). Copier paper is available in 70,
75, and 80 GSM. Laser printers are the primary use case for this gsm. A4-size copier paper is sold by several
organizations in the market. In the market, you can find both domestic and imported copier paper.

FAQs: A4 Size Paper

Q. Is the paper industry sustainable?

Ans. In terms of large-scale industrial systems, the wood and paper sector are perhaps the only ones capable
of meeting future sustainable development needs. For the paper and wood industry, this is a once-in-a-lifetime
opportunity to play a key role in a carbon cycle based on the photosynthetic conversion of water, CO2,
nutrients, and solar into a clean energy wood pulp, making it one of the most important natural cycles that
regulate our climate and entail our daily lives.
Q. Does manufacturing A4 paper profitably exist?

Ans. A4 sheet-making company ideas feature a mathematical formula for producing money. An 80gsm sheet
of paper will weigh 2.3 kilograms and cost 60*2.3=138 Indian rupees in one ream. It sells for around 160-165
rupees on the open market

This A4 sheet making business ideas or machine is model 1200 mm in China have 1.25 reams
production capacity. So this machine is the available machinery in India cheapest one with high
production capacity.
In this A4 sheet making business ideas or machine is cutting only or with out packing machine.
So two staff need for packing process this machines suit for with out packing machine.
A4 sheet making machine

A4 sheet making machine

A4 sheet cutting machine details

 TARGET COST

Target costing estimates product cost by subtracting a desired profit margin from a competitive
market price. As the target cost makes reference to the competitive market, it is fundamentally customer-
focused and an important concept for new product development.

For example, if a company has a target selling price of $200 and the desired profit margin of $40, the
company's target cost would be $160.

In this project of A4 sheets also we are targeting Rs.78 as a target cost and with profit margin of Rs.72
per packet and the selling price will be only Rs.150.

COST SHEET

A cost sheet is a statement that shows the various components of total cost for a product and shows
previous data for comparison. You can deduce the ideal selling price of a product based on the cost sheet.
A cost sheet document can be prepared either by using historical cost or by referring to estimated costs. A
historical cost sheet is prepared based on the actual cost incurred for a product. An estimated cost sheet,
on the other hand, is prepared based on estimated cost just before the production begins.
 COST SHEET

Estimated Profit and Loss Account if we sale 4000 packets of A4 sheets.

Cost per unit = 150 per packet of A4 sheet

Total quantity of sale = 4,000 packets.
Sales = 4,000*150 = 6,00,000

Dr. Cr.

Particulars ` Particulars `
To Materials Consumed 1,20,000 By Sales 6,00,000
To Wages 80,000
To Manufacturing Expenses 80,000
To Gross Profit c/d 3,20,000
` 6,00,000 ` 6,00,000
To Rent, Rates and Taxes 15,000 By Gross Profit b/d 3,20,000
To General Expenses 3,000
To Management Expenses 9,000
To Sales and Distribution Expenses 3,000
To Income tax 2,000
To Net Profit 2,88,000
` 2,88,000 ` 2,88,000

Cost Sheet (4000) Packets

Particulars Total Cost per

` ` Unit (` )
Materials Consumed 1,20,000 30.0
Wages 80.000 20.0
Prime Cost 2,00,000 50.0
Add: Works/Factory Overheads:
Manufacturing Expenses 80,000 20.0
Works/Factory Cost 2,80,000 70.0
Add: Office and Administration Overheads:
Rent, Rates and Taxes 15,000 3.75
General Expenses 3,000 0.75
Management Expenses 9,000 2.25
Total Office and Administration Overheads 27,000 6.75
Cost of Production/Cost of Goods Sold 3,07,000 76.75
Add: Selling and Distribution Overheads
Selling and Distribution Expenses 5,000 1.25
Total Cost of Sales 3,12,000 78.0
Add: Profit 2,88,000 72.0
Sales Value
6,00,000 150.0
 COST CONTROL

Cost Control
The definition of cost control states that it is a process which focuses on trying to control the total cost
through competitive analysis. Such practices help in aligning the original cost in agreement with the
established costs.
Through this process, firms can ensure their production costs do not soar higher than the predetermined
expenses. The cost control process involves several stages, which begins with the budget preparation
related to production. Next, the actual performance is evaluated, followed by the calculation variances
between the original cost and the budgeted cost. The next task is to investigate the reasons for the same,
and the final stage involves implementing necessary actions to mend the discrepancies.
Standard costing and budgetary control are two techniques used in the cost control process. The process
is a continuous one and helps to analyse the causes for the variances. It involves:

• Determining the standards

• Comparing the standards and looking at the results
• Analysing the variances
• Establishing the action needed to be taken by the firm

Cost Reduction
The definition of cost reduction states it to be a process which aims to reduce the unit cost of a product or
service manufactured by the firm without harming its quality. A number of modern and improved
techniques can be used for this purpose which serves as an insight to the alternative methods to lower the
production costs of every unit.

Cost reduction has a significant role in reducing the per unit costs of products and are thus essential for
firms to maximise their profits. This process helps in pointing out and reducing the unnecessary expenses
during the production process, storage, selling or distribution of the products. The cost reduction process
emphasises the following:

• Savings in every unit cost of production

• The product quality should not be compromised
• Non-volatile nature of the savings

The primary tools involved in cost reduction involve quality operation and research, better designs in
products, reducing variety and evaluating jobs amongst others.
Difference Between Cost Control and Cost Reduction
The importance of cost control and cost reduction are massive in businesses, but they have a few
differences. The key difference between cost control and reduction include:
• Cost control is a process which focuses on reducing the total cost of production. However, cost
reduction aims at reducing the per unit cost of a product.
• Cost control is a quick process by nature, while cost reduction is a more permanent process.
• The cost control process ends when the required target is met. On the other hand, the cost reduction
process is a continuous process which does not end after a certain time. It is primarily focused on
eliminating unnecessary costs.
• Cost control does not provide any promises regarding maintaining the quality of the products, but
cost reduction does not affect the quality of the product even slightly.
• The cost control process is more of a function to prevent the cost before their occurrence while the
cost reduction process is more of a function used to resurrect the expenses.
Thus, cost control and reduction are an essential part of any organisation willing to boost their profits.

Cost control analysis in manufacturing A4 sheets:

Raw material

• Using of Raw material instead of using 80 gsm A grade raw material we can use the 70 gsm a
grade raw material for the production which would cost less. The A grade paper will cost around 125 Rs
per kg but the b grade paper will cost around 50 Rs per kg but the quality remains same. since from the
survey they are asking about quantity we can easily go for b grade raw material

• We can also use the recycled Parent sheets for the production, and it will also cost less so the we
can reduce the cost. This paper would cost around 40 Rs per Kg, but Quality will slightly differ.

• And buying the parent raw material directly from paper mills we can save commission cost that
we need give for distributors
• So, from survey the customers are asking without boarder paper that we can produce the same and
we can save the ink cost that we need to incur.
• And Installing Factory near to Mills so that we can reduce transportation cost
 • Electricity
The one more main thing that we need to consider is Electricity and if we are using second top end model
of machine 4 unwind for producing 1 bundle of paper it requires 3 units which would be cost around
30rs (10rs per unit). we can reduce through Power Down your Equipment, Take Advantage of
Consumption Periods and also Secure Employee Buy-In.

• Increase Efficiency of machine

second top end model of machine 4 unwind for producing 1 bundle of paper in 5 min for A grade paper.
but we are using B grade paper so that we can reduce that time to 4 min so that Efficiency of the Machine
can be increased and by using new high-tech machines for the production

• Labour cost
For operation of one Machine it Requires 2 operators for 8 hours production instead of that we can use
those operators in shift wise, 6 hours per each so that the labour Efficiency increase and working time
will also increase.

• Controlling of wrapping cost

Using of shrink wrap packaging for more economic way of packing which would cost around 1 Rs per
Rim so that we can reduce the cost .and also instead of using carton boxes we can go easy cover packs
for last level packing so that we can control the cost of packing.