Download - Smart plastics pvt. ltd. By Mayank Patel
Smart Plastics Pvt. Ltd.
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I undersigned Mr. Mayank R. Gol the student of T.Y. B.B.A..
Here, I declare that presented project repot work on Smart Plastics Pvt. Ltd. (Rajkot) is my own work under the guidance of prof. Dinaben Kanani.
This has not been submitted to any other university for an examination.
Date :~ Mayank R.Gol
Signature of In charge
Declaration
Preface
Smart Plastics Pvt. Ltd.
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In the B.B.A. Field, only the theoretical knowledge of business is not enough for achieving all over knowledge of business Management.Practical training is also important in all aspects of human life. Keeping this in mind, Saurashtra University has included the subject of practical studies or Industrial Training in B.B.A. of some favourable days in every year of B.B.A.
I had attended on Industrial training at Smart plastics Pvt. Ltd. (Rajkot). It is well known Gear manufacturing unit using advanced technology & equipment. The report submitted here, provides all information that I have obtained in my practical training at Smart Plastics Pvt. Ltd..
Date :~ Mayank R.Gol
Signature of In charge
Acknowledgement
Smart Plastics Pvt. Ltd.
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It quite delighting for me to get admission in course of business administration which is most valuable in commerce field. This is great opportunity for me to present my third project report of the industrial unit that I have visited.
I am very grateful to our prof.Dinaben Kanani for their sincere attention valuable guidance and providing suggestion & guiding me to prepare this report.
I am also thankful to Mr. Mayank gol for providing me the permission to visit this unit. I am also thankful to Mr. Hardik Boghara for sparing their valuable time inspire of their busy schedule and helping me to collect all such information.
Date :~ Mayank R.Gol
Signature of In charge
Smart Plastics Pvt. Ltd.
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Sr. no. Contents
Page no.
01. General Aspects 08
Introduction 09
Portfolio of the Firm 10
Mission, Vision & Values 12
Profile of the Partners 13
Basis and Presumptions 15
Organisational Structure 16
Implementation Schedules 17
Location Justification 18
2. Technical Apects 20
Product Detail 21
Types of the Product 21
Usage & Features of the Product 24
Production Capacity Schedule 25
Main Index
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Details of Raw Material and Suppliers 26
Details of the Machineries 27
Production Process 28
Quality Justification 29
Pollution Control 30
Energy Conservation 30
Staff & Labour Details 31
3. Marketing Aspects 32
Marketing 33
Marketing Research 33
Market Potentiality 34
Promotional Activities 34
Distribution Channel 35
Demand Analysis 36
Pricing Decision 36
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4. Financial Aspects 37
Fixed Capital Detail 38
Working Capital 40
Total Capital Investment 42
Sources of Finance 42
Depreciation 43
Sales Forecast 43
Fixed & Variable Cost Schedule 44
Projected Cost Sheet 46
Projected Financial Accounts (80%) 49
Projected Financial Accounts (90%) 52
Projected Financial Accounts (100%) 55
Schedules For Overheads 58
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5. Financial Analysis 62
Cost of Production 63
Turnover 64
Profitability Analysis 65
BEP Analysis 67
Risk Factors 69
Raw Material Suppliers 70
Machinery Suppliers 71
6. Future Prospectus 72
7. Conclusion 74
8. Bibliography 76
GeneralAspects
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Introduction
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Small scale industry is the pillar of Indian economy. Most of
the business carried out in India are small scale units. Small scale
units provides raw materials to large scale units and be partners of
their success. The number of small scale units, the volume and
range of products manufactured the employment provide and value
of exports by these industries have grown substantially during the
last decade.
This report is on “Plastic Bottles” and the product is very
much known to the people. Plastic industries are one of the up
coming industries now a days. So, demand for plastic products for
various uses is increasing day by day. Plastic is mostly used as
packing material for industries and storing material for stores and
house plastic bottles are one of the most common storing and
packing containers.
Portfolio Of The Firm
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Name of the Unit “Smart Plastics Pvt. Ltd.”
Form of the Unit Partnership Firm
Size of the Unit Small Scale Industry
SSI Registration No. Applied For Registration
Products Name Plastic Bottles
Brand Name$m@rT®
Name of the Promoters Mayank R. GolKaushal G. DhadukMohit N. BhagdevHardik J. Boghara
Factory Location Plot no. 901, Phase – I I ,G.I.D.C. Metoda, Lodhika,Dist. Rajkot
Registered Office 105, Ground Floor,King’s Plaza,Astron Chowk,Rajkot-360002.
Bankers Jeevan Commercial BankICICI bankIDBI BankGSFC
Establishment Year 2011
Phone Number/ Fax No. (0281) 2901553/2901554
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Web Site www.smartproducts.com
E-mail Id [email protected]
Number of Employees 80
Cost of the Project 10’264’500
Production Capacity As per Product
Contribution in Finance 80 % Owned Capital20 % Borrowed Capital
Our Vision
Mission, Vision & Values
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‘The most successful and admired Plastic Product company, which means that we are the most trusted & qualitative company, the easiest to deal with, offer the best value for money, and set the standards in the industry’.
‘The most obvious choice for all’.
Our Values
‘The values that we observed while we work’.
Integrity Innovation Customer Centric People care “One for all and all for one” Team work Joy & Simplicity
Our Mission
We, at plastic industries want to provide customers both in rural areas as well as urban areas high quality branded products. We, by producing Smart Plastic Products, want to help in a small way to rural community in solving their liquid keeping problems.
We are in the business of plastic industries world. We have a mission to accomplish the following objectives:
Accelerate the growth of rural & urban market for our plastic products.
Strengthen our positioning Gujarat market
Rapidly popularizing our products across India.
Partner 1
Profile Of The
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Name of the Partner Mayank Gol
Address “Lekh”,7,Krishna Plot,Near the Shishu Mandir,Derdi (Kumbhaji)-364465,Dist. Rajkot.
Educational Qualification I.C.W.A., I.C.F.A., MBA.
Designation in Unit Founder & OwnerFinance & Cost Department
Financial Contribution 40 %
Share in Profit 40 %
Partner 2
Name of the Partner Kaushal Dhaduk
Address “Satyam”8, Vishweshwar,Movdi Chowkdi,Rajkot-360006.
Educational Qualification Diploma in HRM, B.E.(Chemical).
Designation in Unit HR & Technical Department
Financial Contribution 20 %
Share in Profit 20 %
Partner 3
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Name of the Partner Mohit Bhagdev
Address “Jalaram Krupa”,16, Laxmi Vadi,Rajkot-360004.
Educational Qualification Ph.D.(Whole Marketing Elements).
Designation in Unit Marketing & Mfg. Department
Financial Contribution 20 %
Share in Profit 20 %
Partner 4
Name of the Partner Hardik Boghara
Address “Waqt”2,Gulab Nagar,Master Society Main Road,Rajkot-360002.
Educational Qualification C.A., UPSC, PGDEM.
Designation in Unit Accounting & Export Department
Financial Contribution 20 %
Share in Profit 20 %
Basis & Presumptions
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The unit will work for 300 working days in a year on single shift
basis.
The salaries & wages, cost of land and building and Raw-Material
cost have been taken according to prevailing market rates.
Time period for achieving full envisaged capacity utilization is 2
years.
The salaries & wages will be given on monthly.
The cost in respect of machinery and equipment, raw-materials and
the selling price of the finished product etc are those generally
prevailing at the time of preparation of the project report.
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ORGANIZATION STRUCTURE
Organisational Structure
Managing
Director
HR Manager Production Manager
Sales Manager
Finance Manager
Assistant Designer Assistant Accountant
Workers Typist
Skilled Unskilled
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The major activities in the implementation of the project
has been listed here,
1. Preparation of project report selection of site & S.S.I registration etc
04 Months
2. Procurement of finance loan construction of factory shed machinery procurements, erection and commissioning trials runs & recruitment of staff & labours permanent registration etc.
10 Months
3. Machinery procurement 04 Months
Total Time Period 1 year & 6 months
Schedules
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JUSTIFICATION OF LOCATION
To select the location is one of the very important & crucial decisions for any organization. A good location may reduce the cost of production & distribution to considerable extend. While selecting a site, it is necessary to consider technical, commercial and financial aspects and then select a site that may provide maximum advantages.
We have selected GIDC Metoda while keeping in mind the following facilities:
Facility of transportation Smart availability of raw materials Cheap labour Market Availability of power supply Finance facilities Water facility Govt. Facility
TRANSPORTATION
The purposed factory will be at Metoda, Rajkot well connected by three modes
of transportation, Railway, Roadway & Airway. The factory site is in proximity with the
Rajkot Railway Junction , Domestic Airport and the national highway – 8B and the state
highway Rajkot-Kandla.
The nearest international city is Mumbai 45 minutes flying time and the nearest
major port is Kandala 200 km. by road. So all kind of transporting vehicle, truck, train,
ship, plane etc are available not too far from the site and hence our location in respect
of to transport availability for the product concerned is the most suitable one.
Location Justification
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AVAILABILITY OF RAW MATERIAL
Mainly for our product bottles is needed other raw materials which are in
detail given later in this report. All those raw materials are available at Ahmedabad,
Viramgam, Raipur, Bhila etc.
MAN POWER
All manufacturing concern small or big always depends on available man power
skilled, unskilled, and semiskilled. We have also given a thought to this matter and
found that ours is an area cheep labour is easily available in our project.
MARKET
All products manufacturers always think about market of this product. Our
nearest and main markets are, Ahmedabad, Rajkot, Jamnagar, Mahesana etc.
WATER FACILITIES
Water is not required for product purpose. It is required only for domestic
purpose. Arrangement will be made at the site by installing tube well.
SOURCES OF FINANCE
Finance is oxygen or blood for the industry and thus the procurement of
finance is very vital. The various financial industries like the nationalized banks,
commercial banks, GSFC branch are located in Rajkot city near to the site of the factory.
Technical
Aspects
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Product Details
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The unit will produce only 1 litre plastic bottles for the time being.
There bottles will be available with sealing caps without printing of any
kind words & figures. Plastic granules are the main raw material for this
product and we can get this raw material very easily from the market .
Types Of The Products
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Smart Plastics Pvt. Ltd.
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Usage & Features Of The Product
This product will be used as a packing material for many industries
like every food products which are in liquid form for packaged drinking
water industry for oil industry, chemical industry, pharmaceutical industry
& other ailed product industries.
Now a days people prefer more plastic items than glass items. So
plastic bottles are regularly used for house hold purpose and many other
producers who are selling their product in liquid form for them plastic
bottles are pre- requirement. Example is that every people purchase
sharbat bottles for their routine use.
There are certain features of this product which are as under.
It is not a costly product and afford by every people
It is in less weight so it is very Smart to movement.
This product doesn’t need a much care because this product is
not easily broken or damaged.
We can store a plastic bottle in any place.
These plastic bottles are very useful to other industries for
Packing materials.
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Installed capacity 1012500
Utilized capacity 813000
Daily production 2710
Weekly production 16260
Monthly production 67750
Monthly sales 677500
Yearly sales 8130000
No of working days 25 in a month
No of working days 300 days in a year
Production Capacity Schedule
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RAW MATERIALS & SUPPLIERS
Raw material is the basic and main requirement for producing any
product for our industry we need plastic granules as a raw materials.
Two companies are selling plastic granules of different grades.
According to their grades their prices are changed and for a different
plastic items different grade of plastic granules are used.
Main Two companies are selling plastic granules
(i) Reliance
(ii) IPCL
Smart plastic will purchase plastic granules from Reliance Industries.
Grade of Plastic Granules – GPBN 52GB003
Details Of Raw Materials
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MACHINERY & EQUIPMENTS
Machinery is such a thing through which Raw material are
converted into finished product.
“Smart Plastic” or this unit will use following machineries in
their production.
(1) Cooling tower
This machine is used for cooling plastic after jinning plastic
stones which are in liquid mode.
(2) Air compressor
This machine is used for giving specific shape by creating
bottles.
(3) Scrap Grinder
This machine is used for removing scrap to give perfect size
to the product.
(4) Thermoplastic Injector Molding Machine
This machine is used for checking all bottles whether
anyone is lickage or defective pieces.
Details Of Machineries
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Production Process Chart
Production Process
Heating Stones in cylinder Cooling of Plastic Liquid
Mixing Of ColoursProviding Shape
Removing Scrap Final Product
Quality Test
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QUALITY SPECIFICATION
According to C.D. Lewis, Quality is,” An asset which may be offered to the potential customers of a product or services.”
It is the totality of features and characteristics of a product that bear an ability to satisfy a given need. It makes a product fit for the use of customers. This fitness is related to benefits derived by the customers and customer satisfaction.
For Plastic Products, the quality of a product depends upon strict supervision and use of correct material according to the specification. In the construction care should be taken while roughening the upper. If they over roughed, the fibers will be weakened. The adhesive should be properly applied to obtain permanent bond.
Quality
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Pollution Control
At the time of conversion of inputs into outputs, some waste is inevitable. This wastage and spoilage create some pollution which harms the environment. This pollution can be controlled if various steps are taken into consideration.
As far as Smart Plastics pvt. Ltd. is concern, this industry will not generate any type of pollution.
Energy Conservation
Energy is the basic requirement for any manufacturing process. Energy can be in the form of fuel as well as power. It is necessary to utilize optimum energy to reduce the cost and achieve maximum production.
Energy conservation in this type in unit is much on the lower side since low powered motors are used in the production activity. The staff of the unit should be made aware of the need to conserve energy by switching off energy sources when not required.
Pollution Control
Energy
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General Manager 01
Production Manager 01
Marketing and Sales Manager 01
Finance Manager 01
Skilled Workers 35
Semi-Skilled Workers 15
Unskilled Workers 10
Fitter For Maintenance 01
Supervisor 03
Receptionist 01
Store Keeper 01
Watchman 03
Foreman 02
Peon 05
Total 80
Staff & Labour Details
Marketing
Aspects
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MARKETING
What is marketing?
“Marketing is the process that facilitates an exchange of goods for money to the mutual satisfaction of both the producer and the consumer.”
What is a sale?
“A sale is an exchange of goods for money. It is the end point of the marketing effort.”
In the global world of present times when competition can come from any part of the world, it becomes essential to take a marketing approach where the customer is treated as a KING.
The marketing philosophy places the customers at the centre of all business considerations.
MARKET RESEARCH
“Marketing research has to do with the gathering, processing, analysis, storage and dissemination of information to facilitate and improve decision making.”
Market research is a very important tool for an organization. It fills the gap between the development of a product and its ultimate sales to the consumer.
Market research enables the entrepreneur to plan, to organize, to stimulate, to co-ordinate and to control production, finance, sales, advertising and profits. It has become a key resource to accomplish two objectives of customer satisfaction and profitability.
Smart Plastics has also done market research and in future also it needs to conduct it to keeps the firm in touch with the market and to survive in cut-throat competition.
Marketing Exercises
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MARKET POTENTIALITY
Market potential is the scope of the product occupying space existing market. It represents an anticipated level of demand and it also reflects on the pattern of the demand. The aspects which are covered under market potential are customers, market share, contribution in the market already existing and many more.
As the population of the country is ever going up, resulting in higher and higher demands of the consumer item. Thus, in view of both national requirement and vast export potential, there is immense scope for further promotion of this industry in the country.
Thus, potentiality of children Bottles in the market is very strong.
PROMOTIONAL ACTIVITIES
Promotional activities are those activities which make efforts to promote the product and help to increase the market share. Advertisement is done through various medium as a promotional tool in this firm.
Promotion can be defined as,” the co-ordinated efforts to establish channels of information and persuasion to facilitate or foster the sale of goods or services, or the acceptance of ideas or points of view”.
Smart Plastics gives advertisement in:-
news papers
television
magazines
on radio and
even through personal selling
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DISTRIBUTION CHANNEL
“The channels of distribution are the set of marketing institutions participating in the marketing activities involved in the movement or the flow of goods or service from the primary producer to the ultimate consumers.”
Channels of distribution are best understood as alliances of various marketing institution performing specific marketing functions. The channel of distribution includes the original producer the final buyer and any middleman either wholesaler or retailer is
component are linked in the channel system by one or more marketing flows. In order to bring the goods from the place of manufacturer to the place of the consumer, the goods have to follow a path or route, which is known as ‘Channel of distribution’ or ‘Trade channel’ which are as follows:
Manufacturer
Retailer
Consumer
Smart Plastics follow the above channel of distribution.
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Demand Analysis
Success of any organization depends upon the demand of the
product of that organization. Without knowing about the demand of any
product if you are produce that product than it may happen that you will
have to suffer a loss. This unit is going to produce 1 litter plastic bottles.
The demand for any plastic items is increasing rapidly. Demand for the
packaged drinking water chemicals, drugs, pharmacy product, every food
product which are in liquid form, kitchen wear, etc are also increasing due
to increase in production and so for packing all these products plastic
bottles are required.
The unit will get a direct purchaser for their product i.e.
manufacturer of all food products, oil millers, pharmacy company, chemical
companies etc gave assurance to purchase plastic bottles and we all know
that future of plastic containers is very bright so we can say that this unit
will definitely achieve the projected target.
Pricing Decision
This firm is going to product 1 liter plastic bottles, so to decide a
proper pricing policy for this product is very necessary. Pricing is an
important decision that every company has to high price or low price may
create a bad reputation of the firm the price of a product is crucial
decision.
“Smart plastic” i.e. our firm will adopt cost plus pricing policy for
their product .
Financial
Aspects
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Total Fixed Assets
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A) Plant and Machinery
SI.No. Description Imp / Ind
Qty Value (Rs.)
01. Hydraulic Sewing Arm Upper Clicking Machine
Ind 1 112’500
02. Upper Skiving M/c Ind 1 82’50003. Punching & Eyeleting M/c (Treadle
Operated)Ind 1 15’000
04. Upper Folding M/c Imp 1 127’50005. Stamping M/c for Upper & Lining Ind 1 22’50006. Flat bed sewing machine (Power
operated)Ind 4 72’000
07. Post bed single needle machine (Power)
Imp 2 225’000
08. Cylinder bed sewing machine Imp 2 240’00009. Zig Zag Sewing Machine (Power) Imp 1 120’00010. Toe lasting machine Imp 1 1’200’00011. Seat lasting machine Imp 1 1’200’00012. Double ended buffing and brushing
machineInd 1 37’500
13. Injection Moulding Machine (fully automatic)
Imp 1 1’500’000
14. Cost of moulds --- - 225’00015. Spare parts for imported machinery
@ 10%Imp - 461’250
16. Wooden lasts @ 250 per pair for 400 pairs
Ind - 180’000
17. Tools and equipment, dies for upper Ind - 90’00018. Office equipment and furniture Ind - 75’00019 Electrification and installation
charges @ 10% of the cost of machinery
--- - 495’450
Total --- - 6’481’200 Say 6’481’000
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B) Land & Building
PARTICULARS YARD RATE AMOUNT
Land 400 sq 5’00 2’000’000
Building 2’500sq 400 1’000’000
Total 3’000’000
C) Other fixed assets:-
Pre-operative expenses 73’500
WORKING CAPITAL
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A). Salary and Wages
SI.No. Personnel No. Salary (Rs.) Amount (Rs.)
01. Manager (Production) 01 22’500 22’500
02. Manager (Sales) 01 22’500 22’500
03. Designer 01 127’500 127’500
04. Supervisor 02 15’000 30’000
05. Skilled Worker/Machine Operator
20 7’500 1,00,000
06. Unskilled Worker 10 4’500 45’00007. Accountant 01 6’750 6’75008. Clerk cum Typist 01 6’000 6’000
09. Storekeeper 01 6’000 6’000
10. Peon cum Chawkidar 01 4’500 4’500
11. Sweeper 01 3’000 3’000
Total 3,09,000
B) Utilities (Per Month):-
SI.No. Description Qty. Value (Rs.)
01. Power – 20 HP 6’000 units 30’000
02. Domestic light 600 units 12’000
03. Water Charges 3’000
Total 45’000
C).Raw Material
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SI.No. Description Qty. Rate (Rs.) Value (Rs.)
01. FC Upper 168’750 dcm 20/dcm 3’375’000
02. Softy lining 93’750 dcm 50/dcm 4’687’500
03. Leather Board 9’375 pairs 60/pair 562’500
04. Canvass 1’200 mtrs 50/mtr 60’000
05. PVC Materials (Black/Colour)
9’375 Pairs 85/pair 796’875
06. Adhesive & grinderies 9’375 pairs 35/pair 328’125
07. Packing materials 10’000 Pairs 10/pair 100’000
Total 9’910’000
D) Other contingent expenses (PER MONTH)
SI.No.
Item Amount (Rs.)
01. Rent 15’00002. Postage and Stationery 15’00003. Repairs and Maintenance 15’00004. Storage Expenses 3’00005. Transport Charges 7’50006. Advertisement and Publicity 12’00007. Taxes 6’00008. Insurance 15’00009. Sale Expenses 15’00010. Misc.Expenses 9’000
Total 112’500
TOTAL CAPITAL INVESTMENT
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1). Fixed capital Rs. 6’555’000
2). Working capital Rs. 5’509’500
TOTAL CAPITAL INVESTMENT Rs. 12’064’500
In this firm, finance will be generated 80% from owned capital and 20% from borrowed capital.
Owned capital Rs. 8’211’600
Borrowed capital Rs. 2’052’900
TOTAL Rs. 10’264’500
Contribution of owned capital between different partners can be divided into the ratio of 40%, 20%,20% and 20% as……
1). MAYANK GOL (40%) Rs 3’284’640
2). KAUSHAL DHADUK (20%) Rs. 1’642’320
3). MOHIT BHAGDEV (20%) Rs. 1’642’320
4). HARDIK BOGHARA (20%) Rs. 1’642’320
SOURCES OF FINANCE
DEPRECIATION
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NO PARTICULARS RATE 1STYEAR 2ND YEAR 3RD YEAR
01. Machinary 10% 240’000 270’000 300’000
02. Furniture 10% 9’600 10’800 12’000
03. Wooden last 12.5% 13’500 15’130 16’875Total 263’100 295’930 328’875
Year Utilized capacity Production Sales SellingPrice
Amount
1st 70.00% 90’000 90’000 113 10’170’000
2nd 78.75% 101’250 101’250 113 11’441’250
3rd 87.50% 112’500 112’500 113 12’712’500
Fixed cost
SALES FORECAST
FIXED AND VARIABLE COST SCHEDULE
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No Particular Amount
1 Depreciation 564’450
3 Interest on total investment 1’810’800
4 Salaries 126’000
5 Other expenses 216’000
6 Rent for one year 180’000
7 Insurance 54’000
TOTAL 2’951’250
FCPU = Total Fixed cost
Units. Sold
= 2’951’250/90’000
= 32.79
Variable cost
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No Particular Amount
1 Raw-material 5’085’000
2 Other Contingent Expenses 1’350’000
3 Utilities 540’000
4 Other material 495’000
5 Staff & Labour 369’000
TOTAL 7’839’000
VCPU = Total Variable Cost
Units. Sold
= 7’839’000/90’000
= Rs.87.1
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Particulars 2011-12 2012-13 2013-14
*PRIME COST
Opening Stock Of Raw-material
- - -
Add: Purchase 4’068’000 4’576’500 5’085’000
Less: Closing Stock Of Raw-Material
- - -
RAW-MATERIAL COST 4’068’000 4’576’500 5’085’000
Direct Wages 162’600 181’925 203’250
Power – 20 HP 288’000 324’000 360’000
Domestic light 115’200 129’600 144’000
Water Charges 28’800 32’400 36’000
PRIME COST 4’662’600 5’244’425 5’828’250
PROJECTED COST SHEET
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*FACTORY OVERHEADS
Storage Expenses 28’800 32’400 36’000
Repairs and Maintenance 144’000 162’000 180’000
DEPRICIATION ON:
Machinery 240’000 270’000 300’000
Furniture, Tools & Equipment
9’600 10’800 12’000
Wooden lasts 13’500 15’185 16’875
TOTAL FACTORY OVERHEADS
435’900 490’385 544’875
*OFFICE EXPENSES
Rent 144’000 162’000 180’000
Salary 51’000 57’375 63’750
Postage and Stationery 144’000 162’000 180’000
Taxes 57’600 64’800 72’000
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Insurance 144’000 162’000 180’000
Misc.Expenses 86’400 97’200 108'000
TOTAL OFFICE EXEPENSES 627’000 705’375 783’750
*SELLING & DISTRIBUTION OVERHEADS
Transport Charges 72’000 81’000 90’000
Advertisement and Publicity 115’200 129’600 144’000
Sale Expenses 144’000 162’000 180’000
TOTAL SELLING & DISTRIBUTION OVERHEADS
331’200 372’600 414’000
TOTAL COST 6’056’700 6’812’785 7’570’875
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Trading A/c of SMART INDUSTRY for the year 2011-12
Particulars Amt. Particulars Amt.
Opening balance ------- Sales 10’131’600
Purchase of R.M. 4’068’000 Closing balance 240’000
Wages 213’600
Power- 20HP 288’000
Domestic Light 115’200
Water Charges 28’800
Gross Profit 5’658’000
10’371’600 10’371’600
PROJECTED FINANCIAL ACCOUNT (70%)
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Projected Profit & Loss A/c of SMART PLASTICS for the year 2011-12
Particulars Amt. Particulars Amt.
Salary 213’600 Gross Profit 5’658’000
Rent 144’000 Interest on investment 1’448’640
Postage & Stationery 144’000
Repair & Maintenance 144’000
Storage Expense 28’800
Advertisement 115’200
Sales Expense 144’000
Misc. Expense 86’400
Depreciation 120’480
Bank Interest 347’457
Interest on partner’s capital 675’612
Insurance 144’000
Transport Charges 72’000
Taxes 57’600
Net Profit 4’669’491
7’106’640 7’106’640
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Balance Sheet of SMART PLASTICS for the year 2011-12
Liabilities Amt. Assets Amt.
Capital: Fixed Assets:
Mayank Gol 3’284’640 Land and building 3’000’000
Kaushal Dhaduk 1’642’320 Machinery 2’400’000
Mohit Bhagdev 1’642’320 Furniture 96’000
Hardik Boghara 1’642’320 Wooden Last 108’000
Storage Facility 720’000
Net profit 4’669’491 Other 348’000
Investment 1’200’000
Current Liabilities: Current Assets:
12% Loan 240’000 Debtors 3’229’491
Cash 720’000
Bank 3’306’231
Bills Receivable 453’369
Closing stock 240’000
13’121’091 13’121’091
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Trading A/c of SMART PLASTICS for the year 2012-13
Particulars Amt. Particulars Amt.
Opening balance 240’000 Sales 11’398’050
Purchase of R.M. 4’576’500 Closing balance 270’000
Wages 240’300
Power- 20HP 324’000
Domestic Light 129’600
Water Charges 32’400
Gross Profit 6’125’250
11’681’550 11’681’550
PROJECTED FINANCIAL ACCOUNT (78.75%)
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Profit & Loss A/c of SMART PLASTICS for the year 2012-13
Particulars Amt. Particulars Amt.
Salary 240’300 Gross Profit 612’5250
Rent 162’000 Interest on investment 1’629’720
Postage & Stationery 162’000
Repair & Maintenance 162’000
Storage Expense 32’400
Advertisement 129’600
Sales Expense 162’000
Misc. Expense 97’200
Depreciation 135’540
Bank Interest 390’890
Interest on partner’s capital
760’063
Insurance 162’000
Transport Charges 91’000
Taxes 64’800
Net Profit 5’013’177
7’754’970 7’754’970
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Balance Sheet of SMART PLASTICS for the year 2012-13
Liabilities Amt. Assets Amt.
Capital: Fixed Assets:
Mayank Gol 2’305’940 Machinery 2’700’000
Kaushal Dhaduk 1’152’970 Furniture 108’000
Mohit Bhagdev 1’152’970 Wooden Last 121’500
Hardik Boghara 1’152’970 Storage Facility 810’000
Net profit 5’013’177 Other 54’007
Investment 1’350’000
Current Liabilities: Current Assets:
12% Loan 350’030 Debtors 675’000
Cash 810’000
Bank 3’719’510
Bills Receivable 510’040
Closing stock 270’000
11’128’057 11’128’057
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Trading A/c of SMART PLASTICS for the year 2013-14
Particulars Amt. Particulars Amt.
Opening balance 270’000 Sales 12’664’500
Purchase of R.M. 5’085’000 Closing balance 300’000
Wages 267’000
Power- 20HP 360’000
Domestic Light 144’000
Water Charges 36’000
Gross Profit 6’802’500
12’964’500 12’964’500
PROJECTED FINANCIAL ACCOUNT (87.50%)
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Profit & Loss A/c of SMART PLASTICS for the year 2013-14
Particulars Amt. Particulars Amt.
Salary 267’000 Gross Profit 6’802’500
Rent 180’000 Interest on investment 1’810’800
Postage & Stationery 180’000
Repair & Maintenance 180’000
Storage Expense 36’000
Advertisement 144’000
Sales Expense 180’000
Misc. Expense 108’000
Depreciation 150’600
Bank Interest 434’322
Interest on partner’s capital
844’515
Insurance 180’000
Transport Charges 90’000
Taxes 72’000
Net Profit 5’566’863
8’613’300 8’613’300
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Balance Sheet of SMART PLASTICS for the year 2013-14
Liabilities Amt. Assets Amt.
Capital: Fixed Assets:
Mayank Gol 4’105’800 Land and building 3’750’000
Kaushal Dhaduk 2’052’900 Machinery 3’000’000
Mohit Bhagdev 2’052’900 Furniture 120’000
Hardik Boghara 2’052’900 Wooden Last 135’000
Net profit 5’566’863 Storage Facility 900’000
Investment 1’500’000
Current Liabilities: Current Assets:
12% Loan 300’000 Debtors 1’171’863
Cash 975’000
Bank 4’132’788
Bills Receivable 686’712
Closing balance 300’000
16’131’363 16’131’363
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SCHEDULE FOR WRITTEN DOWN VALUE OF FIXED ASSETS
Particular Rate Net Block
Year 1 Year 2 Year 3
Land Building Machinery Furniture & FixtureElectrification Installation ChargesTelephone Computer Trolley & other equipments
-10%15%10%
10%10%60%
10%
50,00,00067,50,00011,39,000
1,80,000
4,50,0009,000
24,000 13,500
50,00,00060,75,000
9,68,1501,62,000
4,05,0008,1009,600
12,150
50,00,00054,67,500
8,22,9271,45,800
3,64,5007,2903,840
10,935
Schedules For Overheads
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S C H E D U L E F O R F A C T O R Y O V E R H E A D S
Particular Year 1 Year 2 Year 3
Repairs WagesDepreciation on MachineryDepreciation on BuildingInsuranceFuel
Total
80,0007,95,6002,01,000
7,50,000
15,00036,000
80,0007,95,6001,70,850
6,75,000
15,00036,000
80,0007,95,6001,45,223
6,07,500
15,00036,000
18,77,000 17,72,450 16,79,323
S C H E D U L E F O R A D M I N I S T R A T I V E O V E R H E A D S
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Particular Year 1 Year 2 Year 3
SalaryPostage & TelegramTelephoneMiscellaneous Exp.Insurance ExpensesMedical ExpensesProfessional TaxLegal ExpensesAudit FeesDepreciation Interest on Owned CapitalElectricity
Total
2,96,300
22,00032,00044,00075,00046,500
1,80024,00035,500
1,08,500
9,55,50036,000
2,96,300
22,00032,00044,00075,00046,500
1,80024,00035,50079,650
9,55,50036,000
2,96,300
22,00032,00044,00075,00046,500
1,80024,00035,50064,485
9,55,50036,000
17,40,400 17,11,550 16,96,385
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S C H E D U L E F O R S E L L I N G O V E R H E A D S
Particular Year 1 Year 2 Year 3
Advertising Exp.Traveling Exp.
Total
62,00063,000
62,00063,000
62,00063,000
1,25,000 1,25,000 1,25,000
Financial
Analysis
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Cost of Production
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No. Particular Amount
1 Total recurring cost per year 7’068’000
2 Depreciation on machinery @ 10% 300’000
3 Depreciation on furniture, tools & equipment @10% 12’000
4 Depreciation on wooden last @ 12.5% 16’875
5 Interest on total investment @ 15% 1’810’800
TOTAL 9’207’675
Turnover
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Sales Selling price Amount
112’500 113 12’712’500
At 70% utilization
Quantity: 90’000 Pairs In Value: Rs. 10’170’000/-
At 78.75% utilization
Quantity: 101’250Pairs In Value: Rs.11’441’250 /-
At 87.50% utilization
Quantity: 112’500 Pairs In Value: Rs. 12’712’500 /-
Profitability Analysis
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1).PROFIT:-
Annual turnover Rs. 12’664’500
Less: Cost of production Rs. 9’247’800
PROFIT Rs. 3’416’700
2).PROFIT AFTER TAX:-
Profit Rs. 3’416’700
Less: Tax (50%) Rs. 1’708’350
NET PROFIT Rs. 1’708’350
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3). RATE OF RETURN:-
Rate of Return = Net profit X 100
Total capital investment
= 1’708’350 X 100
3’072’000
= 55.61%
4). NET PROFIT RATIO:-
Net Profit Ratio = Net profit X 100
Sales
= 1’708’350 X 100
12’664’500
= 13.49%
BEP Analysis
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Particulars Amount Sales (113 * 112’500) 12’712’500Less : Variable Cost 7’839’000
Contribution 4’873’500
Less : Fixed Cost 2’951’250
Profit 1’922’250
B.E.P. ( IN UNITS ) :
= Total Fixed cost
Contribution per unit
= 2’951’250
43.32
= 68’126 units
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P.V. Ratio = Contribution X 100
Sales
= 4’873’500
12’712’500
= 38.34%
B.E.P. (in Rs.) = Total Fixed cost
P.V. Ratio
= 2’951’250
38.34%
= 7’697’574 /- Rs.
Risk Factors
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1. Change 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 materials etc will be helpful.
1) M/s. Akshar Trade Ink.
Raw Material Suppliers
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Address: Giriraj Complex,
25, Karanpara Corner
Karansinhji Main Road,
Rajkot.
Phone: 2232433
E-mail: [email protected]
2) Murlidhar Polymers
Address: Giriraj Complex,
25, Karanpara Corner
Karansinhji Main Road,
Rajkot.
Phone: 2232433 / 2232666.
Machinery Suppliers
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Our unit wil l purchase machinery from fol lowing supplier.
1) Polymechaplast Machine Ltd.
Address: “Gold Coin” House,
775, GIDC, Makarpura
Vadodara 390 010.
Web site: www.polymechplast.com
Future Prospec
tus
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Each and every unit has its own dreams and plans. The company are always engaged in the activities that how they can achieve bright future and for that planning is a must.
We are going to establish a “Smart Plastics” industry. We will produce 1 litre plastic bottles. We are sure that this unit will definitely get estimated profit. After some years we will introduce/produce one another product i.e. “Plastic Container” with its existing product so we can say that this is our future plan for our organization.
In Smart Plastics, all the members come together and decide some challenging activities and set them as a goal to be achieved in near future. Following are some of the future plans:
1).To captures maximum market.
2). Optimum utilization of resources.
3). to create goodwill.
4). Development of various branches all over the world.
5). to get more profit.
Future Prospectus
Conclusion
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Conclusion
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This firm is an emerging firm having bright future. Today most of the people are getting conscious (alert) about fashionable products. This firm tries to satisfy such class of people by providing fashionable water or any other bottles.
As an Entrepreneur, I see high market potentiality and bright career of the firm. At last I hope that all the live factor work with great efficiency and co-ordination, all the other resources are utilized at maximum capacity and united efforts are made to achieve all the predetermined set of goals.
Bibliography
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Bibliography
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Serial No.
Book/Site Name Author/Provider
1. [email protected] Polyplast(india)Ltd.
2. Marketing Management Philip Kotler
3. Finance Management I. M. Pandey
4. Manufacturing & Material Management
M. R. Patel