fan

PPR ON CEILING FAN

1MVM COLLEGE RAJKOT

PPR ON CEILING FAN

1.1 INTRODUCTION TO SSI

The small scale industry has emerged as the most dynamic sector

of

Indian industrial economy accounting for ever 55% of the total value of

industrial production over 40% of the country’s exports & more importantly

providing employment opportunities to over 175 lac people in 3175 units. All

along it has shown the growing spirit of entrepreneurship. In other words, small

business is the Open University for entrepreneurs to translate their vision

innovative ideas into reality. It is thus the seed of entrepreneurial dreams.

Small scale industry in India roughly provides employment to about 4.4

million people and constitutes a large position of the country’s exports. The

govt. of India is well aware of the importance of small scale industry in our

economy and growth of small scale industry i.e. establishment of various SSIs.

All India Boards that give technical, financial and other relevant guidance to

small scale industries, other benefits & concessions. Cottage & small scale

industry have flourished in India since the early times. Even today Industry are

a principal source of income & employment and their product find ready

market in the country as well as abroad.

DELUXE FAN INDUSTRY will be small scale industry which have

investment of Rs./-10000000. Deluxe fan industry will produce celling fan.

This industry will have 31 employees.

2MVM COLLEGE RAJKOT

PPR ON CEILING FAN

1.2 INTRODUCTION TO PPR

In to today’s area of market there is so many substitute product which is used in absent of one product. DELUXE FAN INDUSTRY will produce celling fan for the use of industry or house hold purpose. The industry will produce decorative fan for its consumer.Industry will use oil paint as well as color paint in its ceiling fan. This type of fan is generally used in the different industry, houses, schools, colleges, organization, banks, etc. it gives coolest air. Demands for fan will high at the time of summer. Deluxe fan industry will reached his fan with help of dealers or wholesaler. This type of product is also produce by other industry which is situated near to deluxe fan industry. Sandy fan, orpate fan, usha fan are produce fan like the deluxe fan. Deluxe fan industry will produce fan which have different design, different color, different size etc. Deluxe fan industry will used quality raw-materials, latest machinery, and produced by skilled employee as well engineer of industry.

3MVM COLLEGE RAJKOT

PPR ON CEILING FAN

1.3 PROJECT AT A GLANCE

Name of the Unit “DELUXE FAN”

Tag line “Always fill fresh & cool air ”

Promoter’s Name Sirja Vidya M.

Communication address : DELUXE FAN INDUSTRY

Survey No. 237/238

Plot No.3,4 &7B,NH8-B

Shaper (veraval) DIS.-Rajkot

Registration office Address Sundaram complex, Neharunagar, Rajkot-360002.

Telephone No. 0281-252914

Fax No. +91-2827-252700

Form of Organization Partnership firm

Size of the unit small scale industry

Brand Name “Deluxe”

Usage of the product Industry or House hold purpose

SSI Registration No. Applied for

Number of employee 31

Investment 1,00,00,000

Day off Wednesday

Sources of finances 1.Owner’s capital (60%) 60,00,0002.Borrowed capital (40%) 40,00,000

4MVM COLLEGE RAJKOT

PPR ON CEILING FAN

Investment in working capital 41,79,000

Investment in fixed capital 58,21,000

Relation with Bank State bank of India

LOGO of Company

5MVM COLLEGE RAJKOT

PPR ON CEILING FAN

1.4 PROMOTER’S BACKGROUND

Name Sirja Vidya M.

Age 26

Address Astha Residency,3G+ Apartment,Sukanvila 201,Rajkot-360004

Education/Qualification MBA

Experience 2year

Nature of Responsibility Managing marketing & finance

Contribution in the unit 60%

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PPR ON CEILING FAN

1.5 JUSTIFICATION OF LOCATION

DELUXE FAN INDUSTRY strategically located at SHAPER

(VERAVAL) industrial estate. Location factors are crucial for the wealth

maximization of the firm ; therefore it is inevitable for every industrialist

to give full consideration to the suitable location of the enterprise . An

entrepreneur must choose an ideal location to have better performance .

Following are the factors to select shaper as the plant location

1.Availability of Raw-materials :-

Raw-material plays vital role to achieve quality

improvement and cost reduction in production . Shaper is the best to get

raw-material easily because it is attached with national highway. Raw-

material like nut bolt, capacitors, wires are easily available at near to shaper so,

this location is suitable for deluxe fan industry.

2. Availability of power and water:-

In modern era industry could not work without power.

Adequate electricity and regular flow of electricity allows greater

freedom of choice for location . Shaper(veraval) has continuous flow of

electricity so, shaper ( veraval ) is best possible location as out of the city

area .The rate of electricity is lower in shaper (veraval) because it’s known as

industrial zone. Water supply is also necessary for continuous production

process.

3.Nearness to markets :-

Quickness in marketing action can be ensured by the

being close to the market, late deliveries can be avoided when plant is

located near the market . Industry will have ready market for selling of

product. Deluxe fan will establish near to market.

7MVM COLLEGE RAJKOT

PPR ON CEILING FAN

4. Availability of labor:-

Worker or labors are the most imported person in the industry.

If labor gets easily then we can control or reduce the cost of production. At

shaper, labors get at cheaper rate because of industrial zone.

NATIONAL HIGH WAY

SHAPER CHOKDI

DELUXE FAN INDUSTRY

Survey No. 237/238

Plot No.3, 4 &7B, NH8-B

Shaper (veraval) DIS.-Rajkot

8MVM COLLEGE RAJKOT

RAJKOT

DELUXE FAN INDUSTRY

SHAPER VILLAGE

PPR ON CEILING FAN

1.6 ORGANISATION CHART

9MVM COLLEGE RAJKOT

PRODUCTION MANAGERR

PRODUCTION MANAGERR

H R MANAGER

H R MANAGER

MARKETING MANAGER

MARKETING MANAGER

FINANCE MANAGER

FINANCE MANAGER

SUPERVISIORSUPERVISIOR EMPLOYEESEMPLOYEES SALES MANSALES MAN ACCOUNTANTACCOUNTANT

WORKERWORKER CLERKCLERK

PPR ON CEILING FAN

1.7 VISION AND MISSION

VISION:-

Vision of the deluxe fan industry will maximum customer

satisfaction by providing qualitative and good product to customer. Job

satisfaction of employee will also short goal of the industry.

MISSION:-

Mission of deluxe fan industry will expanding market as well as

market share of industry. Industry wants to convert small scale industry in

medium scale industry with the customer satisfaction. Industry wants to build

strong image in the market.

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PPR ON CEILING FAN

1.8 BASIS AND PRESUMPTION

The proposed production of 36,000 per annum of Ceiling Fan more than 300 working days in a year.

Shift Single shiftWorking hours 8:00Am to 6:00Pm

Break 12:00Pm to 1:00Pm

The unit requires 2 to 3 year to achieve full capacity utilization the first year, company utilized 75% capacity.

The wages proposed in the project are as per privileged wage practice in the area.

Land value and construction cost has been taken on an average basis science it varies from place to place.

The cost of machinery & equipment has been proposed after consulting the machinery supplier nearly all the machines are available locally.


PPR ON CEILING FAN

1.9 IMPLEMENTATION SCHEDUL

No. Particulars Time Period 1. Preparation of Project Report 1 Month2. Acquisition of Land 1 Month3. SSI Registration 22 days4. Approval of loan 20 Days5. Construction of Building 2 Months6. Acquisition of Machinery 1 Month7. Installation of Machinery 1 Month8. Arrangement of Power 1 Month9. Appointment of Staff &Labour 22 Days


PPR ON CEILING FAN


PPR ON CEILING FAN

2.1 PLANT LAYOUT

There are mainly two types of plant layout.

1) Process layout

2) Product layout

According to M.C.Muste :-

“ A good layout is one which always materials regularly and

directly for processing ,this reduces transport ,handling, detail and other

costs down per unit, space requirements are minimize and reduced idea

machine and idle man fine.”

A technique of locating different machines and plant requires

within the factory so that the greatest possible output of high quality at

the lowest possible total cost be available. Proper plant layout is one of

keys of success in factory management. It signifies arrangement of

machines work area transport shorting of materials and processing to

different parts.

DELUXE FAN INDUSTRY will have systematic plant layout which is reduce the unnecessary motion of employees. Industry will arrange their store room near to production plan so Industry will eliminate damage of raw-materials or finished product. Industry will arrange his machinery in that way which reduces movement of raw-material.


PPR ON CEILING FAN

2.2 RAW MATERIAL

Authors believe, “The raw materials are like the parts of human

body” without which the person cannot perform his activities. Raw materials

are very important requirements of every industry & mainly for manufacturing

unit. The production of any product is not possible without raw materials. Raw

materials are regarded as assets and are given or sold at higher price.

Raw-material is essential elements of any product without it no

one is produce any things or product. The raw materials are the most important

component of the production process. When the raw materials are collected

then and only then production is possible. If the raw materials are available in

the cheapest way it is the most important advantage for the firm. The raw

materials can be compared to water, air and food for human beings which are

very important so as the raw materials for the firm.

MACHINARY & RAW-MATERIAL which is used by DELUXE

FAN INDUSTRY for producing ceiling fan:-

RAW-MATERIAL OF CILING FAN :-

CEILING FAN BODY, CEILING FAN BLADE,ARMACHER,BARRING, CAPICATOR,CEILING FAN WIRING,CAPICATOR CLAMP,CELLING FAN CLAMP,EARTHING WIRES,NUTTS & BALLS


PPR ON CEILING FAN

2.3 MACHINERI AND EQUIPMENT

Like raw materials machinery is also available easily. Some of the mare acquired from local market only & some are acquired from Ahmadabad city.

MACHINARY :-

HYDROLIC POWER PRESS, CELLING FAN WIRING MACHINE, LATH MACHINE, DAI TOOL POWER PRESS, POWER CASTING,PVC MOLDING, BLADE CUTTER, OILING MACHINE


PPR ON CEILING FAN

2.4 SUPPLIERS OF MATERIAAND MACHINERY

Suppliers of DELUXE FAN INDUSTRY will as follow :-

1. Wires : BIC company 2. Casting materials : TATA company3. Armechars : DR. BACK company4. Capicators : Dell korn company5. Nutt bolt : local market6. Celling fan clamp : graver company

MACHINARY :-

CELLING FAN WIRING MACHINE: - Shiv Wiring industry Ahmadabad

LATH MACHINE: - Parth limited Ahmadabad

OILING MACHINE: - Tinytech pvt. ltd. Surat


PPR ON CEILING FAN

2.5 FLOW CHART OF PRODUCTION PROCESS


PPR ON CEILING FAN

2.6 PRODUCTON PROCESS

There is many manufacturing process like job shop process, continuous process, mass production process etc. DELUXE FAN INDUSTRY is just produce the ceiling fan. This type of fan is use in so many places. Deluxe fan industry is used continuous manufacturing process because it is based on sequences. The manufacturing process of ceiling fan is as under:

1. Material casting :- First of all mixed material and put down in to casting machine.

2. Turning :- After casting of material put down all items in to the lath machine for the purpose of turning.

3. Oil coloring :- After preparation of body, coloring is required. There is use oil color as well as powder color for coloring process.

4. Stamping rotter :- After oil color of full body of fan is completed. Then Industry have to joint wires of armacher. These wires must be copper wires.

5. Fitting :- Last step of process is joining all the wires with the other and fit it in to the fan’s body.

This is the process of manufacturing fan in the industry which will

followed by the deluxe fan industry


PPR ON CEILING FAN

2.7 PRODUCTION CAPACITY

Year Installed

capacity

Utilized

capacity

Units

1 100% 50% 18,000

2 100% 75% 27,0003 100% 100% 36,0004 100% 100% 36,0005 100% 100% 36,000

1) No. of shifts per day: 1 shift

2) No of working hours per shift: 8 hours

3) No. of working days in a year.: 312 days


PPR ON CEILING FAN

2.8 POLLUTION CONTROL & ENERGY

CONVERSION

POLLUCTION CONTROL:

• The entrepreneur is advice to contact concerned state pollution control

board for detailed guidance in the matter.

• “Deluxe fan industry” not any high conical and raw materials which

spread pollution. They follow government rules of pollution high walls

in production department to reduce the noise pollution.

ENERGY CONSUMPTION:

• Although the energy requirement, it’s small yet some important point for

conservation of energy are given below.

1) In electronically installation appropriate electric machines should be &

properly installed.


PPR ON CEILING FAN

2.9 QUALITY CONTROL AND STANDARD

“Quality is near an accident; it is always the result of high

intention, sincere effort intelligent direction and skillful execution”.

Above all, quality means setting the highest standards for their selves.”

In industrial context quality is defined in much more

functional fashion thus we can say that quality means, “Fitness for use”

whether for a product or service. It is also considered as the sum total of the

attributes or properties that describe the product.

Today the existence of any manufacturing unit depends on the quality of

product or services it manufactures or supplies. The image or goodwill of

any unit is closely related to the quality of product made or supplied by that

unit;

In the DELUXE FAN INDUSTRY will be much conscious about its

product and quality. Industry will produce electronically items so proper

control is required. Industry will be use latest equipment for the checking

of raw-materials and finished product. So that Industry can maintain quality

of their product and build image in the market.


PPR ON CEILING FAN


PPR ON CEILING FAN

3.1 MARKET POTENTIAL

• The market potential for ceiling fan is huge. While there are all people who prefer to buy the ceiling fan Thus, initially we will try to exploit this segment of market. We would also like to draw the attention people which use different type of celling fens.

• All public is fond of ceiling fan especially in India. celling fan use in industry or house hold purpose. In Market our product will be available easily.

We are producing and supplying the product as per the demand.


PPR ON CEILING FAN

3.2 MARKET SEGMENTATION

“Market segmentation is the sub dividing of a market in to

homogeneous sub sets of customers, where any sub sub-set May conceivably

by selected as a market target ton be achieved with distinct marketing mix.”

According to PHILIP

KOTLER

The concept of market segmentation is based on the assumption that

markets are not homogeneous but are heterogeneous. Market segmentation

reflects reality in marketing situation. Market segmentation ensures higher

customer satisfaction and improves effectiveness of the marketing

programmed. Market segmentation is a customer’s oriented philosophy.

CRITERIA FOR MARKET SEGMENTATION:-

1. Geographic

2. Demographic

3. Psychographic

4. Socio economic

5. Marketing condition

DELUXE FAN INDUSTRY will segment his market on the basis of geographic basis. Industry has local market. Industry has industrial users and consumer users. Demand of fan is increase in time of summer


PPR ON CEILING FAN

3.3 PROMOTIONAL EFFORTS

According to H.R. DELENS:-

“Sales promotion means any steps that are taken for the purpose of

obtaining or increasing sales. Often this term refers to selling efforts that are

designed to supplement personal selling and advertising and by coordination

help them to become more effective “

Methods of sales promotion:-

1. Discount to intermediate

2. Discount to customer

3. Sales promotion

In DELUXE FAN INDUSTRY, Industrywill give discount to its retailer and give lucky coupons to its customer. Industry will give commission and other intensive to its salesmen for promoting them. It will have greater impact on sales of company.

.


PPR ON CEILING FAN

3.4 PRICING POLICY

Price is the exchange value of as goods and services in terms of

money in other word price of product or services is what the sell or

feels me worth in terms of money to the buyers and sellers as without

prices market cannot exits.Pricing policy has significant important in any

enterprise. Pricing govern the very facility of any marketing programmer

economist defines prices is the exchange of value of goods of services

in term of money .

There are three basic pricing policy which are as below :

1. Cost oriented pricing policy

2. Demand pricing policy

3. Competition oriented pricing policy

DELUXE FAN INDUSTRY will adopt COST PLUS

PRICING POLICY these types of prices cover the full cost occurred

and industry adds some percentage of margins of profit.


PPR ON CEILING FAN

3.5 DISTRIBUTION CHANNEL

According to WILLIAM J.STANTON:-

“A channel of distribution for a product is the route

taken by the title to the goods as Industry move from the producer to the

ultimate customers or industrial users.”

Distribution channel may be defined the set of

marketing institution participating in the marketing activities involve

in the movement or the flow of goods or distribution indicate rout

pathways through which goods and services flow from producer to

customer . Channel of distribution includes manufacturer , customer as

well as intermediaries .

DELUXE FAN INDUSTRY will ignore long distribution

channel. Distribution channel of deluxe fan industry will be as follows:


PRODUCER PRODUCER

RETAILER RETAILER

WHOLESELLER WHOLESELLER

PPR ON CEILING FAN

3.6 COMPETITORS

Competition may be with :

Competitors are offering similar product and services to the same

customer at similar price or sometimes lower than that .

Industry are diversifying to have more big range of products with

range of specification with each one .

All companies are now in E-BUSINESS so as to have bigger

market share .

Competitors of DELUXE FAN INDUSTRY are,

1. SANDY FAN INDUSTRY2. USHA FAN INDUSTRY3. ORPATE FAN INDUSTRY4. ORIENT FAN INDUSTRY5. CROMTAN FAN INDUSTRY6. ANCHOR FAN INDUSTRY


CUSTOMER CUSTOMER

PPR ON CEILING FAN


PPR ON CEILING FAN

A) TOTAL FIXED ASSETS

A-1) Land & building

Land 25,00,000

Land development & fencing 1,00,000

Factory Building 5,00,000

Office building 3,00,000

Storage house 3,00,000

Bore well 50,000

Water tank 40,000

Main gate 50,000

Watchman’s Cabin 50,000

Lavatory & bathroom 50,000

Total 39,40,000


PPR ON CEILING FAN

A-2) Plant & machinery

Sr No. Particular Quantity Rate per

machine

Value

1. Cutting Machine 1 4,00,000 4,00,0002. Stuffing Machine 2 2,00,000 4,00,0003. Sewing Machine 1 1,73,000 1,73,000

Total 4 7,73,000 9,73,000


PPR ON CEILING FAN

A-3) Preliminary expenses

Sr. No. Particular Rs.

1. Consultancy fees 20,000

2. Project report preparation fees 30,000

3. Legal expenses of company

formation

30,000

Total 80,000


PPR ON CEILING FAN

A-4) Furniture

Sr

No.

Name of the item Quantity Rate per unit Amount

1. Ordinary table 8 6,000 48,000

2. Computer table 4 5,000 20,000

3. Chairs 120 500 60,000

4. Sofa seta 4 30,000 1,20,000

5. Fans 26 1,500 39,000

6. Light 32 500 16,000

7. Door &

windows

10

20

6,000

4,000

60,000

80,000

8. C.C.T.V. camera 7 5,000 35,000

9. Air conditioners 4 35,000 1,40,000

10. Refrigerators 3 30,000 90,000

11.. Computers 4 30,000 1,20,000

TOTAL 242 1,53,500 8,28,000


PPR ON CEILING FAN

TOTAL FIXED ASSETS

Particular Rs.

Land & building 39,40,000

Plant & machinery 9,73,000

Preliminary expenses 80,000

Furniture 8,28,000

Total 58,21,000


PPR ON CEILING FAN

B) TOTAL WORKING CAPITAL

B-1)RAW MATERIAL (MONTHLY)

Sr No. Particular Quantity

Kg.

Rate per

Kg.

Amount Rs.

1. Ceiling fan body 1,500 100 1,50,0002. Capacitor 2,250 100 2,25,0003. Ceiling fan clamp 3,000 100 3,00,0004. Earthing wires 3,000 100 3,00,0005. Natts & balls 3,000 100 3,00,000

TOTAL 12,750 500 12,75,000


PPR ON CEILING FAN

B-2)Salary and wages

Designation No. of

employee

Salary per

month

Total amt.

monthly

General manager 1 14,500 14,500

Factory manager 1 12,500 12,500

Supervisor 1 10,000 10,000

Clark-cum cashier 1 10,000 10,000

Foreman 2 3,000 6,000

Computer operator 1 6,000 6,000

Salesman 1 4,000 4,000

Store keeper 1 3,000 3,000

Peon 1 2,000 2,000

TOTAL 10 65,000 68,000


PPR ON CEILING FAN

B-3) Utility (production facilities)

Particular Monthly amt.

Power 10,000

Fuel 4,000

Water 5,000

Oil and Grease 1,000

TOTAL 20,000


PPR ON CEILING FAN

B-4) Other expenses

Particular monthly

Postage & stationary 3,000

Telephone charges 4,000

Transport charges 6,000

Advertisement expenses 5,000

Insurance 2,000

Repair & maintenance 5,000

Selling expenses 4,000

Other miscellaneous expenses 1,000

TOTAL 30,000


PPR ON CEILING FAN

TOTAL WORKING CAPITAL

Sr No. Particular Amount

A. Raw material 12,75,000

B. Salary and wages 68,000

C. Utility 20,000

D. Other expenses 30,000

Working capital *3month 13,93,000*3

Total working capital 41,79,000


PPR ON CEILING FAN

(C) TOTAL INVESTMENTS

Sr No. Particular Amount

1. Total Fixed Assets 58,21,000

2. Total Working Capital 41,79,000

Total Investments 1,00,00,000


PPR ON CEILING FAN

(D) SOURCES OF CAPITAL

Total investment

1,00,00,000

Owned capital Borrowed capital

(60%) (40%)

60,00,000 40,00,000


PPR ON CEILING FAN

(E) LOAN REPAYMENT SCHEDUALE

Year Opening balance Interest12% Closing

1. 40,00,000 6,00,000 36,00,0002. 36,00,000 5,40,000 32,00,0003. 32,00,000 4,80,000 28,00,0004. 28,00,000 4,20,000 24,00,0005. 24,00,000 3,60,000 20,00,0006. 20,00,000 3,00,000 16,00,0007. 16,00,000 2,40,000 12,00,0008. 12,00,000 1,80,000 8,00,0009. 8,00,000 1,20,000 4,00,00010. 4,00,000 60,000 -

(F) DEPRICIATION FIXED ASSETS


PPR ON CEILING FAN

(1) YEAR

Name of the assets Opening

balance

Depreciation Closing

balance Land & building (10%) 39,40,000 3,94,000 35,46,000

Plant & machinery (15%) 9,73,000 1,45,950 8,27,050

Furniture (10%) 7,08,000 70,800 6,37,200

Computer (60%) 1,20,000 72,000 48,000

(2) YEAR


balance



Plant & machinery (15%) 8,27,050 1,24,057 7,02,993

Furniture (10%) 6,37,200 63,720 5,73,480

Computer (60%) 48,000 28,800 19,200

(3) YEAR


PPR ON CEILING FAN


balance



Plant & machinery (15%) 7,02,993 1,05,449 5,97,545

Furniture (10%) 5,73,480 57,348 5,16,132

Computer (60%) 19,200 11,520 7,680

(G) ESTIMATED PRODUCTION AND SALES

(A) Estimation of production


PPR ON CEILING FAN

Sr No. Production

capacity

Unit of production

1. 50% 18,000

2. 75% 27,000

3. 100% 36,000

(B) Estimated sales

year Opening

stock (unit)

Productio

n (unit)

Sales (unit) Closing

stock(unit)

1. - 18,000 16,200 1,800

2. 1,800 27,000 26,100 2,7003. 2,700 36,000 35,100 3,600

(H) STOCK OF RAW MATERIAL


PPR ON CEILING FAN


Particular Year-1 Year-2 Year-3

Opening stock

(unit)

0 1,800 2,700

+ purchases (unit)

19,800 27,900 36,900

_ Consumption 18,000 27,000 36,000

Closing stock in

Rs.

1,800 2,700 3,600

PPR ON CEILING FAN

(I) TOTAL FIXED EXPENSES

Particular Amount

Salary & wages (60%) 4,89,600

Utilities (50%) 1,20,000

Other expenses (70%) 2,52,000

Total fixed expenses 8,61,600

Fixed cost per unit = Total Fixed Cost At 100%

Total production at 100%

= 8,61,600

36,000

= 23.93


PPR ON CEILING FAN

(J) TOTAL VARIABLE EXPENSES

Particular year

Raw material 36,00,000

Salary & wages (40%) 6,52,800

Utility (50%) 2,40,000

Other expenses (30%) 2,16,000

Total 47,08,800

Variable cost per unit = Total Variable Expense


= 47,08,800

36,000

= 130.8


PPR ON CEILING FAN

(K) TOTAL COST

Total cost = total fixed expenses + total variable expenses

= 8,61,600 +47,08,800

=55,70,400

Total cost per unit = Total Cost


= 55,70,400

36,000


PPR ON CEILING FAN

= 154.733

(L) BREAK EVEN POINT (IN UNIT)

Break Even Point In Unit = Total fixed expenses

Selling price – variable Cost

= 8, 61,600

500–130

= 2,328


PPR ON CEILING FAN

(M) BREAK EVEN POINT (IN RS.)

Break Even Point in Rs. = BEP in Rs.* selling price per unit

= 2,328*500

= 11, 64,000 RS.


PPR ON CEILING FAN

(N)TABLE SHOWING FIGURES OF SALES

year Prod. Capacity sales

(unit)

selling

price per

unit Rs.

total sales

Rs.

1 50% 16,200 500 81,00,000

2 75% 26,100 500 1,30,50,000

3 100% 35,100 500 1,75,50,000


PPR ON CEILING FAN

(O)TABLE SHOWING FIXED EXPENSES


particular year-1 year-2 year-3

Salary & wages

(60%)

4,89,600 4,89,600 4,89,600

Utilities (50%) 1,20,000 1,20,000 1,20,000

Other exp.

(70%)

2,52,000 2,52,000 2,52,000

total 8,61,600 8,61,600 8,61,600

PPR ON CEILING FAN

(P)TABLE SHOWING VARIABLE EXPENSES


Particular year-1 year-2 year-3

Raw material

(100%)

18,00,000 27,00,000 36,00,000

Salary &

wages (40%)

3,26,000 4,89,000 6,52,800

Utility (50%) 1,20,000 1,80,000 2,40,000

Other

expenses

(30%)

1,08,000 1,62,000 2,16,000

Total 23,54,400 35,31,600 47,08,800

PPR ON CEILING FAN

(Q) FINAL ACCOUNTS

FINAL ACCOUNTS YEAR-1

Trading A/CParticular Amt. Particular Amt.


PPR ON CEILING FAN

Opening stock Raw material -Finish goods -

Pur. Of raw materialSalary and wagesUtilities

Gross profit

-

19,80,0003,26,0001,20,000

67,53,600

91,80,000

SalesCash 40% 32,40,000Credit 60% 48,60,000

Closing stock Raw material Finish goods

81,00,000

1,80,0009,00,000

91,80,000


PPR ON CEILING FAN

PROFIT AND LOSS A/C

Particular Amt. Particular Amt.Salary-wagesUtilitiesOther expensesDepreciation Land & building Plant & machinery Furniture ComputerInterest on bankInterest on capitalPreliminary exp. Written offProvision for tax

Net profit

4,89,6001,20,0003,60,000

3,94,0001,45,950

70,80072,000

6,00,0003,60,000

80,0002,18,372

28,42,868

67,53,590

Gross profit 67,53,590

67,53,590


PPR ON CEILING FAN

Balance sheet

Liability Amt. Assets Amt.Owned capital 60,00,000 + interest @6% 3,60,000 +net profit 28,42,868

12% bank loanInterest on loan

CreditorsBills payableProvision for tax

92,02,868

36,00,0006,00,000

2,97,000 29,700

12,18,372

1,49,47,940

Land & building 39,40,000-depreciation 3,94,000 Plant & machine9,73,000 -depreciation 1,45,950 Furniture 7,08,000 -depreciation 70,800 Computer 1,20,000 -depreciation 72,000

Debtors Bills receivablePreliminary exp. 80,000 -written off 2,000

Closing stockCash in hand

35,46,000

8,27,050

6,37,200

48,000

48,60,00036,45,000

72,000

10,80,0002,32,690

1,49,47,940


PPR ON CEILING FAN


Trading A/C

Particular Amt. Particular Amt.Opening stock Raw material 1,80,000 Finish goods 9,00,000


Gross profit

10,80,000

27,90,0004,89,600 1,80,000

1,46,70,000

SalesCash40% 52,20,000Cradit60% 78,30,000


1,3050,000

2,70,00013,50,000

1,46,70,000


PPR ON CEILING FAN

PROFIT AND LOSS A/C


Net profit

4,89,6001,20,0003,60,000

3,54,6001,24,05763,72028,8005,40,0005,52,172

80,00022,09,035

51,54,416

1,01,30,400

Gross profit 1,01,30,400

1,01,30,400


PPR ON CEILING FAN

Balance sheet

Liability Amt. Assets Amt.Owned capital 92,02,868 + interest @6% 5,52,172 +net profit 51,54,416



1,49,09,456

32,00,0005,40,000

4,18,500 41,850 22,09,035

2,13,18,841

Land & building 35,46,000-depreciation 3,54,600 Plant & machine 8,27,050 -depreciation 1,24,057 Furniture 6,37,200 -depreciation 63,720 Computer 48,000 -depreciation 28,800

Debtors Bills receivablePreliminary exp. 80,000 -written off 2,000 Cash on hand

Closing stock

31,91,400

7,02,993

5,73,480

19,200

78,30,00058,72,500

72,00014,37,268

16,20,000

2,13,18,841


PPR ON CEILING FAN


Trading A/C

Particular Amt. Particular Amt.Opening stock Raw material 2,70,000 Finish goods 13,50,000


Gross profit

16,20,000

36,90,0006,52,800 2,40,000

1,35,07,200

1,97,10,000

SalesCash 40% 70,20,000Credit 60% 1,05,30,000


1,75,50,000

3,60,00018,00,000

1,97,10,000


PPR ON CEILING FAN

PROFIT AND LOSS A/C


Net profit

4,89,6001,20,0004,68,600

3,19,1401,05,448

57,34811,520

4,80,0008,94,567

80,00031,44,293

73,36,684

1,35,07,200

Gross profit 1,35,07,200

1,35,07,200


PPR ON CEILING FAN

Balance sheet

Liability Amt. Assets Amt.Owned capital 1,49,09,456+ interest @6% 8,94,567 +net profit 73,36,684



2,31,40,707

28,00,0004,80,000

5,53,500 55,350

31,44,293

3,01,73,850

Land & building 31,91,400 -depreciation 3,19,140 Plant & machine 7,02,993 -depreciation 1,05,448 Furniture 5,73,480 -depreciation 57,348 Computer 19,200 -depreciation 11,520

Debtors Bills receivablePreliminary exp. 80,000 -written off 2,000 Cash on hand

Closing stock

28,72,260

5,97,545

5,16,132

7,680

1,05,30,00078,97,500

72,0001,35,16,783

21,60,000

3,01,73,850


PPR ON CEILING FAN

(R) STATEMENT OF PROFITABILITY

particular year-1 year-2 year-3

sale

-variable

81,00,000

23,54,400

1,30,50,00

0

35,31,600

1,75,50,000

47,08,800

contribution

-fixed exp.

57,45,600

8,61,600

95,18,400

8,61,600

1,28,41,200

86,600

EBDIT

-Dep.

48,84,000

6,82,750

86,56,800

5,71,177

1,19,79,600

4,93,456

EBIT

-Int.on loan

Int.on capital

42,01,250

6,00,0003,60,000

80,85,623

5,40,0005,52,172

1,14,86,144

4,80,0008,94,567

EBT

-Tax @ 30%

32,41,250

9,72,375

69,93,451

20,98,035

1,01,11,577

30,33,473

PAT 22,68,875 48,95,416 70,78,104


PPR ON CEILING FAN

(S) COST SHEET

PARTICULARS YEAR -1 YEAR -2 YEAR -3

Opening stock of raw –material _ 1,80,000 2,70,000

(+) purchase of Raw material 19,80,000 27,90,000 36,90,000

(-) Closing stock of Raw material 1,80,000 2,70,000 3,60,000

Consumption of Raw material 18,00,000 27,00,000 36,00,000

(+) salary wages 3.26,000 4,89,000 6,52,800

(+) Utilities 1,20,000 1,80,000 2,40,000

Prime cost 22,46,000 33,69,000 44,92,800

(+) Utilities 1,20,000 1,20,000 1,20,000

Factory cost 23,66,000 34,89,000 46,12,800

(+) salary-wages 4,89,600 4,89,600 4,89,600

(+) Other expenses 2,52,000 2,52,000 2,52,000

Office cost 31,07,600 42,30,600 53,54,400

(+) opening stock of finished goods - 9,00,000 13,50,000

(-) Closing stock of finished goods 9,00,000 13,50,000 18,00,000

Cost of production 22,07,600 37,80,600 49,04,400

(+) Other expenses 1,08,000 1,62,000 2,16,000

Total cost 23,15,600 39,42,600 51,20,400

(+) profit 57,84,400 91,07,400 1,24,29,600

Sales 81,00,000 1,30,50,000 1,75,50,000


PPR ON CEILING FAN


PPR ON CEILING FAN

RISK FACTOR

In starting phase of any industry Industry have not much problems related to competition. After some time industry face this type of problems. As the expansion of business risk is also increase. This risk factors are as follow :

Many industrial estate is establish in the shaper so Industry may reduce market share of deluxe fan.

Due to the high price of deluxe fan, competitor may reduce the price, and sales of deluxe fan is reduce or fall down.

Sales of fan will reduce due to increasing demand of air cooler.


PPR ON CEILING FAN

SWOT ANALYSIS70

MVM COLLEGE RAJKOT

PPR ON CEILING FAN

Full form of “SWOT”:

STRENGTH:-

• Satisfaction of the consumer about the product of the company is main

strengths.

• Best operation control for quality assurance.

WEAKNESS:-

• lack of co-ordination between various departments.

OPPORTUNITIES:-

.

• By making some good promotional efforts, company can gain more no.

of customers who will be loyal.

• Every year 10% market growth and demand is higher than supply

THREATS:-

• Government rules and regulation change every time.


PPR ON CEILING FAN


PPR ON CEILING FAN

7. FUTURE PLAN

Every units airs at its growth and development in future at the time of

establishment. The future development of any unit shows its success in the

market. Future development may be getting through the increasing installed

capacity or utilizing the existing resources of the unit to the full extend.

Future plan of DELUXE FAN INDUSTRY is as follow :- Industry want to produce fan with aluminum body which incurred low

cost of production.

Industry will have to expanding his business through increasing sales of industry.

Industry want to turn its industry in medium scale industry.

Industry want to increase production capacity and optimum utilization of resources.

Industry want to establish another plantin other area.


PPR ON CEILING FAN

CONCLUSIONS


PPR ON CEILING FAN FAN INDUSTRY will small scale industry which have DELUXE

investment of 10000000. It’s have 31employee who run the business. Deluxe

fan industry will produce ceiling fan .this type of ceiling fan will used in house,

schools, organization etc. so the demand of this fan or product is high in the

market. Customer satisfaction will high due to best quality, reasonable price.

Employee satisfaction will also high because Industry have good working

environment, proper working facility and good relation with employer and

employee.

Deluxe fan industry will earn good profit and Industry also want

to expand their business in the market. Market share of company will also high

due to best efforts of salesmen of industry. In future deluxe fan industry will

have good name in field of electronics.


PPR ON CEILING FAN

REFERENCES76

MVM COLLEGE RAJKOT

PPR ON CEILING FAN

The books referred by me for the report are as follows:

SR.NO.

NAME OF THE BOOK AUTHOR

1. Management Of Small Scale Industries

-Vasant Jain

2. Marketing Management - Philip Kotler

3. Financial Management -By Khan & Jain-By J.M. Pandey
