product project report on machinary chain

A PRODUCT PROJECT REPORT OF MACHINARY CHAIN

A

PRODUCT PROJECT REPORT

ON

“MACHINERY CHAIN”

:: PREPARED BY::

KHATTNI AEZAZ A.

:: ACADEMIC YEAR::

2012-13

:: GUIDED BY::

PROF.GAURAV MEHTA

FOR PARTIAL FULFILLMENT OF B.B.A SEM-V

:: SUBMITTED TO::

SAURASHTRA UNIVERSITY

RAJKOT

:: COLLEGE::

SHRI G.H.GOSRANI COMMERCE (ENG. MED) &

SHRI D.D.NAGDA. B.B.A COLLEGE

JAMNAGAR

A

1PREPARED BY:

KHATTANI AEZAZ A.SHREE D.D.NAGDA B.B.A COLLEGE-JAMNAGAR


PRODUCT PROJECT REPORT

ON

“MACHINERY CHAIN”

:: PREPARED BY ::

KHATTNI AEZAZ A.

:: ACADEMIC YEAR:

2012-13

:: GUIDED BY::

PROF.GAURAV MEHTA

FOR PARTIAL FULFILLMENT OF B.B.A SEM-V

:: SUBMITTED TO ::

SAURASHTRA UNIVERSITY

RAJKOT

:: COLLEGE::

SHRI G.H.GOSRANI COMMERCE (ENG. MED) &

SHRI D.D.NAGDA. B.B.A COLLEGE

JAMNAGAR

2PREPARED BY:



DECLERATION

I, KHATTNI AEZAZ A. a student of B.B.A SEM-V of SHRI D.D.NAGDA. B.B.A

COLLEGE, hereby declare that the product project report presented, in this report my own

work and has been carried out under the guidance of PROF. GAURAV MEHTA.

This work has not been submitted previously to any other university for any examination.

Date:- Signature.

Place:- Jamnagar

KHATTNI AEZAZ A.

3PREPARED BY:



ACKNOWLEDGEMENT

I feel great pleasure to present this report before you. I am thankful to all the member of

university who had helped me in my guidance.

I express my deepest sense of gratitude towards our college lecturer PROF. GAURAV

MEHTA. who has guided me in preparing project report and without whose support my

report would have been very difficult to complete it. I am very thankful and heartily grateful

to our college staff members and my classmates who have given me a true guidance during

preparing project report.

Place:- Jamnagar Yours Faithfully

Date:-

KHATTNI AEZAZ A.

PREFACE

4PREPARED BY:



I am pleased to submit my project report to Saurashtra University as an

important part of paper of entrepreneurship and management of small scale

business as well as the constructive development of my career. Today, in the

growth rate of Indian economy, contribution of small-scale industry is very

important along with the big giants of India.

To be successful manager in the field of management not only theoretical

educational but also practical knowledge is of equal important. The main aim of

preparation of project report is to obtain practical knowledge and experience to face

while starting a new small-scale industry. In the preparation of this Product Project

Report Financial Capabilities, Marketing Activities, Personnel Factor, Sources of

finance etc. are given important. In connection with this I have prepared a Product

Project Report on “MACHINERY CHAIN”

5PREPARED BY:



INDEX

SNO. PARTICULARS PAGE NO.

A. INTRODUCTION 1

B. PROJECT AT A GLANCE 2

C. GENERAL INFORMATION 3

Introduction Of The Product 4

Details Of Partners 5

Proposed Location Justification. 7

Market analysis 9

Market Potential 10

D. PRODUCTION DEPARTMENT 11

13 Product Details 12

Raw Materials 13

Production Capacity 14

Manufacturing Process 15

Manufacturing Process Chart 16

E. FINANCIAL DEPARTMENT 17

Land & Building 18

Details of machinery 19

Total Fixed assets 20

Utilities 21

6PREPARED BY:



Depreciation. 22

Administration Exps. 23

Total working Capital 24

Sources of finance 25

Interest on capital 26

Total cost of production 27

Profit analysis 28

Break even analysis 29

P&L A/c For 2012-13 30

Balance Sheet for 2012-13 31

P&L A/c For 2013-14 32


P&L A/c For 2014-15 34


F. PERSONNEL DEPARTMENT 36

Introduction 37

Man power planning 38

Selection 39

Training and development 40

Promotion and transfer 41

Performance appraisal 42

Employee welfare activity and benefits 43

7PREPARED BY:



G. MARKETING DEPARTMENT 44

Introduction 45

Marketing Mix. 46

Market Segmentation. 47

Advertising & Sales Promotion 48

Distribution & Channel. 49

H. Present Position & Future Scope 50

I Conclusion 51

J Appendix 52

K. Bibliography 54

8PREPARED BY:



INTRODUCTION

More recently enhancing small scale industries (SSIs) have been viewed as an

effective way of forecasting the private sectors. Contribution to both the growth & the equity

objective of development.

SSIs & cottage industries play a key role in the industrialization of developing

country. This is because they provides immediate large scale employment & have a

comparatively higher labor – capital ratio, they need a shorter gestation period & relatively

smaller markets to be economic, they need lower investment, offer a method of ensuring a

market equitable distribution of national income & facilitate an effective mobilization of

resources of capital & skill which might otherwise remain unutilized & they stimulate the

growth of industrial entrepreneurship & promote a more diffused pattern of ownership &

location.

A philosophy that manifests itself in many ways that what is more small scale

enterprise and the core sectors of Indian industrial culture that runs through the Indian

civilization.

When it comes to industrialization, there is bat one enterprise that inspires confidence

– SSIs. This is attributing to the philosophy of excellence.

The meaning of small connects comparatively small in investment, cost operation,

employment, production, finance, technology, market etc. Such small enterprises are not only

beautiful but also beneficial, efficient, and reliable. The definition of SSI varies from one

country to another. Further it also changes with time.

9PREPARED BY:



POJECT AT GLANCE

Unit’s Name : KHATTANI CHAIN INDESTRIES

Address for Communication : KHATTANI CHAIN INDESTRIES

NEAR BY LALPUR HIGH WAY

JAMNAGER.

Type of Unit : Partnership Firm

Name of the Product : machinery chain

S.S.I Registration No. : Applied for

Subsidy Registration No. : No Subsidy Taken

Location of the Unit : KHATTANI CHAIN INDESTRIES

NEAR BY LALPUR HIGH WAY

JAMNAGER.

10PREPARED BY:



GENERAL

INFORMATION

11PREPARED BY:



INTRODUCTION OF THE PRODUCT

A chain is a reliable machine component, which transmits power by means of tensile forces,

and is used primarily for power transmission and conveyance systems. The function and uses

of chain are similar to a belt. There are many kinds of chain. It is convenient to sort types of

chain by either material of composition or method of construction.

In this case, we are going to focus on the latter two: "steel chain," especially the type called

"roller chain," which makes up the largest share of chains being produced, and "plastic

chain." For the most part, we will refer to "roller chain" simply as "chain."

NOTE: Roller chain is a chain that has an inner plate, outer plate, pin, bushing, and roller.

Chain is used in some special situations. For example, cast iron chain is part of water-

treatment equipment; forged chain is used in overhead conveyors for automobile factories.

12PREPARED BY:



DETAILS OF PARTNERS

Partner – I

Name & Address : Khattani Aezaz a.

Near by maszid,

Main road Aliabada-361110

Dist.Jamnagar.

Educational Qualification : BBA

Responsibility : H.R. & Finance department

Contribution : 50%

Experience : Fresh

13PREPARED BY:



Partner – II

Name & Address : Khattani Adil a.

Near by maszid,

Main road Aliabada-361110

Dist.Jamnagar.

Educational Qualification : MBA

Responsibility : Production &Marketing department

Contribution : 50%

Experience : 2 years experience

14PREPARED BY:



PROPOSED LOCATION JUSTIFICATION

Location is more important to any industries. Without it business cannot run. And machinery

chain industries are located on that place which is easily available raw-materials of iron and

steel. So, company can reduce the cost of production. And providing chins at minimum prize.

In chain industries generally available of oil at reasonable prize so, cost of goods

Reduce.

1. Machines Availability: -

Producing the chain machinery are not available from the jamnager or any place of

India. These all the machinery are supplying from china or japans. Because without

machinery production cannot be done. So, machinery is most important to starting the

production.

2. Raw Materials: -

Availability of raw material is the basic necessity for a business unit to run smoothly

and efficiently. Business unit should get required raw material when and where it requires. If

there will be any break up or delay in supplying the raw material the cost of production will

go high because labor cost per unit increase with the lower level of production.

The unit located in Jamnagar so, we get raw material like iron, steel and oil from the

national market. We also get the raw material from the different state.

15PREPARED BY:



3. Infrastructure Facilities: -

Infrastructure facilities are easily available to this unit because it developed in

government industrial zone. The infrastructure facilities like Railway station, airport, nearer

bank services, telephone exchange connecting through STD, ISD, and Fax is available.

In JAMNAGER LALPUR HIGHWAY all the facilities are easily available to market.

4. Power: -

In an CHAIN INDESTRIES industry, availability of power is very important

for its production functions. Even a single minute stoppage of production in such industries

will be resulted in the loss of thousands of rupees. So, the availability of power is very

important for continuous production of the products. In JAMNAGER we are getting enough

power supply through G.E.B. to continue our production process.

Power is the most important source of this unit. Without power these unit cannot run

easily. Because the production of chain machinery are not run without power. In these

industries the requirement of power connection 200 hp.

5. Labor: -

Skilled & Semi skilled labors are available at reasonable rates in Jamnagar. Besides

the site is connected with Jamnagar city, which is a big commercial city.

16PREPARED BY:



MARKET ANALYSIS

The machinery chain is also using in many equipment like bicycle, agriculture, tank, rolling

machines and other recourses so, machinery chain’s more demand in the market. And so

many companies can buy the machinery chain for need of production.

The demand of this item to a large extent depends on the growth or performance of

chain industry in the country. Variety of components with several combination and functions

are available in the international market at competitive prices.

As there is a great demand of machinery chain in areas like Bangalore, Hyderabad,

Mumbai, Kolkata, Pune, Chennai, Delhi, and somewhat in Ahmadabad, Baroda too as they

are either developed or flourishing as industrial areas. Some of the industry of cities like

Jaipur, Indore, Noida, Ambala, Kota, Vijayawada, Chandigarh, Thane, Ankles war, etc are

also requiring this type of components we may establish our market there also if possible.

Though there is tough competition in market but due to futuristic demand we will surely be

successful to have a market there.

As there is already our clients in some of our cities of machinery chain we will surely

get the market from those clients and those cities and for other cities we made a survey and

result was that there was huge requirement in all the above mentioned cities. We have some

of the orders for samples and some confirmation orders also and so we can surely say that

there is a requirement and demand of those items.

Two Criteria’s which have been taken into consideration while selecting this industry

is that Market Potential & Market Share.

17PREPARED BY:



MARKET POTENTIAL

Market is good in sense that chain industry is increasing at a very great extent and is also

having some chain specimen which are manufactured only in Jamnagar.. Market Share is

another problem or criteria which are taken in mind. As there are number of units which are

manufacturing components in Jamnagar already but then also they are not worth matching

demand and there is great scope of developing that industry. The other reason is the

competitors are only manufacturing some limited items and other is being imported from

other countries. The scope is so more for some components which are used in testing

instruments and analog instruments. If they are manufactured and matched the quality

required by the companies then there will be less import and more foreign exchange savings

and this will again also be used in further development of India.

The companies or customers require these chain industries in huge quantities and of

good quality. We will not have problems in launching and making a new brand as our auto

components are there already in market and so our brand is there successful.

18PREPARED BY:



PRODUCTION

DEPARTMENT

19PREPARED BY:



PRODUCT DETAILS

Bicycle

Chain

Super Roller

Chain

Stainless Steel Roller Chain

1. Bicycle chain: These chains transmit the power of pedaling to the back wheel Most

bikes use chain; a few styles use cog belts, but these are the exceptions. In the early stages of

chain development, chain design grew in response to development in bicycles.

2. Super roller chain: Super Roller Chains are available in sizes 80 through 240.

Smaller chains (≤60), stainless steel chains, and offset links are not available in Super Roller

Chain. And these chain are mostly using in tank and other parts of machinery.

3. Stainless still roller chain: SS Roller Chains are the most commonly used

environmentally resistant chains for the manufacture of foods, chemicals, medicines, or

transmission in water. They are also used in indoor conditions where rust is a problem.

20PREPARED BY:



RAW MATERIALS

When a new unit is being set up, the element which bears important role

manufacturing a product that called raw material. The raw material are the key factors

when processed results into an end product. It is very important to determine the total

requirement of the raw material. Which raw material is to be purchased to who is to be

purchased and at what price is to be purchased?

The basic Raw material for producing the machinery chain is purchased from the

national market only. The following are the Raw Material which is used in making

machinery chain

.

1. Oil

2. Iron

3. Steel

4. Pin

21PREPARED BY:



PRODUCTION CAPACITY

As rule of thumb says that no industry or unit can start its unit with 100% capacity at

initial stage. We are also following the same fact and we are having utilizing 50% to 60%

capacity.

The production capacity of our unit is given below in tabular form:

TABLE NO. 1 PRODUCTION CAPACITY

Production Capacity (In %) Capacity (In Quantity)

Installed Capacity (100%) 90,000,00 pieces per annum

Utilized capacity (58%) 52,20,000 pieces per annum

Production can be scheduled as per requirement and as per preferences and as

situation prevails. Generally, we believe in first come first served basis, whichever order is

first will be produced first. And if someone wants very urgently than cost might be high in

comparison to normal timings. As extra timings are to be made for producing and workers are

to be convinced in that way so the cost might be somewhat high or it might be expensive.

We will not give guarantee to company or customer about timings if they first agree

late delivery and afterwards they want to break the contract due to timings.

The work will be done as per schedule only and company must ensure that no delays

will be there by us under normal conditions and little more timing should be given under

abnormal or unexpected situations.

22PREPARED BY:



PRODUCTION AND MANUFACTURING PROCE

1. Punching holes stamping

The first process of machinery chain is outer plate and inner plate

properly punched and stamping by machinery. Brush and roller to send cutting and curling.

And a pin is send to the forming of cotter holes.

2. Through and case hardening

After the punching, cutting and forming next to send all the materials through

hardening and case hardening .

3. Oiling

The next process of chain is to send the all material in properly oiling.

4. Tempering

Once the all product are oiling after they send for tempering in which to

changing the product in different way and giving some new shaped for product.

5. Shot preening, grinding and polishing

After the tempering the outer plate, inner plate and roller are send to the

shot penning. The brush and pin send to the grinding and polishing

6. Automatic assembly

Next the process of all the parts of send to the a automatic assembly for

the purpose of assemble the chain that is inner plate and outer plate parts of chain and all

the material send to the assembly.

7. packaging

Last process of machinery chain is the assemble and complete chain are

packing in properly and send to the last packing.

23PREPARED BY:



24PREPARED BY:



FINANCE

DEPARTMENT

25PREPARED BY:



LAND

TABLE NO. 2

SR. NO. PARTICULARS SQ.FEET RATE TOTAL

1. Open Land 5000 500 25,00,000

BUILDING

TABLE NO. 3

SR.NO. PARTICULARS SQ.FEET RATE TOTAL

1. Manufacturing Shed 1,600 500 8,00,000

2. Godown 1000 500 5,00,000

3. Office Room 400 500 2,00,000

4. Store Room 600 500 3,00,000

5. Compound 1,400 - -

Total 18,00,000

COST OF LAND & BUILDING

TABLE NO. 4

SR.NO. PARTICULARS AMT.

1. LAND 25,00,000

2. BUILDING 18,00,000

TOTAL 43,00,000

DETAILS OF MACHINARY

26PREPARED BY:



TABLE NO. 5

SR.N

O

PARTICULARS AMOUNT

1 Multi-function Lift Chain Calibration Machine

AYW-200

4,00,000

2 Cup chain welding machines 1,00,000

3 Horizontal head Chain cutting diamond faceting 75,000

4 Box chain machine 1,00,000

5 Chain soldering machine 2,00,000

6 Flat carbide rolling machine 2,00,000

7 Two stitching machines

i) One 36” arm angular head

ii) One 48” arm, straight head

55,000

50,000

Total(B) 11,80,000

OTHER ASSETS

TABLE NO. 6

SR. NO. PARTICULARS AMOUNT

1. Furniture 2,60,000

2. Computer 60,000

3. Delivery Van (2) 1,40,000

Total 4,60,000

27PREPARED BY:



TOTAL FIXED ASSETS

TABLE NO. 7

SR. NO. PARTICULARS AMOUNT

1. Land 25,00,000

2. Building 18,00,000

3. Machinery 11,80,000

4. Other Assets 4,60,000

Total 59,40,000

RAW MATERIALS PER MONTH

TABLE NO. 8

SR.

NO.

PARTICULARS QTY.

(IN K.G.)

AMT. (RS.

PER K.G.)

TOTAL

1. Iron 10,000 70 7,00,000

2. Oil 1,000 lr. 100 1,00,000

TOTAL 8,00,000

SALARY PER MONTH

TABLE NO. 9

SR. NO. PARTICUALRS NO. AMT. TOTAL

1. Supervisor 2 8,000 16000

2. Administrative Staff &

Accountant

2 3,000 6000

3. Unskilled Workers 15 3,000 45,000

4. Skilled Workers 7 5,000 35,000

TOTAL 1,02,000

UTILITIES

28PREPARED BY:



TABLE NO. 10

SR.

NO.

PARTICULARS TOTAL (Rs.)

1. Electricity (Rs. 10/unit, i.e. 2500*10) 25,000

2. Oil 10,000

TOTAL 35,000

Calculation of Electricity: -

Total connected load = 200 HP

Per day consumption = 4.5% of the connected load * Shift hours

= 4.5% of 200 HP * 11 hours

= 9 * 11 hours

= 100 units

Per Month Consumption = 100 * 25 days

= 2500 units

Per Year Consumption = 100 * 300 days

= 30,000 units

29PREPARED BY:



DEPRECIATION

TABLE NO. 11

SR.

NO.

PARTICULARS RATE OF

DEP.

AMT. AMT. OF

DEP.

1. Land & Building 10 % 43, 00,000 4, 30,000

2. Plant & Machinery 25 % 11, 80,000 2, 95,000

3.Other Assets

12 % 4, 60,000 5, 52,000

TOTAL 7, 80,000

REPAIRS & MAINTENANCE

TABLE NO. 12

SR. NO. PARTICULARS AMT.

1. Repairs 4,000

2. Maintenance 4,000

TOTAL 8,000

RENT & INSURANCE

TABLE NO. 13


1. Rent Nil

2. Insurance Premium 10,000

TOTAL 10,000

30PREPARED BY:



ADMINISTRATIVE EXPENSES

TABLE NO. 14


1. Printing & Stationary 1,500

2. Postage & Telegram 1,000

3. Telephone 2,500

4. Bonus and Incentives 4,000

5. Others 1,000

TOTAL 10,000

SELLING & DISTRIBUTION EXPENSES

TABLE NO. 15


1. Transportation Charges 10,000

2. Advertising & Sales Promotion 10,000

3. Other Expenses 1,500

TOTAL 21,500

TOTAL WORKING CAPITAL REQUIREMENT 31

PREPARED BY: KHATTANI AEZAZ A.

SHREE D.D.NAGDA B.B.A COLLEGE-JAMNAGAR


TABLE NO. 16

SR.

NO.

PARTICULARS AMT.

(MONTHLY)

AMT.

(YEARLY)

1. Raw Materials 8,00,000 96,00,000

2. Personnel Salary 1,02,000 12,24,000

3. Utilities 35,000 4,20,000

4. Repairs & Maintenance 8,000 96,000

5. Rent & Insurance 10,000 1,20,000

6. Administration Exp. 10,000 1,20,000

7. Selling & Distribution Exp. 21,500 2,58,000

TOTAL 9,86,500 1,18,38,000

TOTAL CAPITAL INVESTMENT

TABLE NO. 17


1. Total Fixed Assets 59,40,000

2. Total Working Capital Requirements 1,18,38,000

TOTAL 1,77,78,000

SOURCES OF FINANCE

32PREPARED BY:



TABLE NO. 18

SR.

NO.

DETAILS BANK

LOAN

FRIENDS &

RELATIVES

OWN

CONTRI.

TOTAL

1.LAND

5,00,000 5,00,000 15,00,000 25,00,000

2. BUILDING 5,25,000 4,00,000 8,75,000 18,00,000

3. MACHINERY 2,00,000 1,36,000 8,44,000 11,80,000

4. FURNITURE 2,70,000 1,90,000 460000

5.WORKING

CAPITAL

10,72,100 8,14,400 98,43,500 1,18,38,000

TOTAL 23,11,140 21,33,360 1,33,33,500 1,77,78,000

MEANS OF FINANCE

TABLE NO. 19

SR. NO. PARTICULARS % AMT.

1. Owners Capital :- 75% 1,33,33,500

2. Borrowed Capital: -

Bank Loan 13% 23,11,140

Friends & Relatives 12% 21,33,360

TOTAL 1,77,78,000

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INTEREST ON CAPITAL

TABLE NO. 20

SR. NO. PARTICULARS RATE OF

INTEREST

AMT.

INVESTED

AMT. OF

INTEREST

1. Owned Capital 8%

1,33,33,500

10,66,680

2. Bank Loan 11 % 23,11,140 2,54,225

3. Friends & Relatives 9% 21,33,360 1,92,002

TOTAL 1,77,78,000 15,12,907

STATEMENT OF SALES & COST OF PRODUCTION

TABLE NO. 21

PRODUCT NAMEQTY.

(IN GROSS)

RS. PERGROSS TOTAL

Bicycle chain75,000 100.00 75,00,000

Roller chain18,500 350.00 64,75,000

Stainless Steel Roller Chain 39,00 650.00 25,35,000

Annual Receipt1,65,10,000

TOTAL COST OF PRODUCTION34




TABLE NO. 22

SR. NO. PARTICULARS AMT.(A)

VARIABLE COSTS: -

1.Raw Material

96.00,000

2.Personnel Salary & wages (80 %)

9,79,200

3.Utilities

4,20,000

4.Administrative Expenses

1,20,000

5.Sales & Distribution Expenses

2,58,000

TOTAL VARIABLE COSTS

1,13,77,200(B)

FIXED COSTS: -

1.Personnel Salary & Wages (20 %)

2,44,800

2.Insurance Premium

1,20,000

3.Repairs & Maintenance

96,000

4.Interest on Capital Invested

15,12,907

5.Depreciation

7,80,200

TOTAL FIXED COSTS27,53,907

TOTAL COST OF PRODUCTION1,41,31,107

PROFIT ANALYSIS

35PREPARED BY:



TABLE NO. 23

PARTICULARS TOTAL

Annual Receipt 1,65,10,000

Less Total Cost 1,41,31,107

PROFIT BEFORE TAX 23,78,893

LessIncome Tax @ 30%

7,13,668

PROFIT AFTER TAX16,65,225

36PREPARED BY:



BREAK EVEN ANALYSIS

Break Even Analysis is very useful in any business to know the break-even

point that is the point at which the firm has neither loss nor profit. It is the main objective of

any business to achieve the break-even point and then try to achieve more profit by

increasing the sales of the products. It can be achieved by applying the formula given below.

BEP = Fixed Cost x Sales

Sales – Variable Cost

Where, F.C. = 27, 53,907 x 1, 65, 10,000

1, 65, 10,000 - 1, 13, 77,200

BEP = Rs. 88, 58,129

Thus, the BEP is Rs. 88, 58,129. If the estimated sale is achieved then the BEP

points will be achieved in the very short period of time of less than 1 year.

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PROJECTED PROFIT & LOSS ACCOUNT AND BALANCE SHEETS

PROFIT AND LOSS ACCOUNT FOR 2012-13

TABLE NO. 24

PARTICULARS AMOUNT PARTICULARS AMOUNT

Raw materials

Salaries

DEPRICIATION

Machinery 2, 95,000

Other assets 55,200

Building 4, 30,000

Utilities

Postage & telegram

Printing & Stationary

Repairs & Maintenance

Telephone Expenses

Transportation

Insurance Premium

Advertisement Expenses

Interest on Inv.

Miscellaneous Exp.

Bonus &incentives

NET PROFIT

AEZAZ 11,89,446

ADIL 11,89,446

96,00,000

12,24,000

7,80,200

4,20,000

12,000

18,000

96,000

30,000

1,20,000

1,20,000

1,20,000

15,12,907

30,000

48,000

23,78,893

Sales 1,65,10,000

TOTAL 1,65,10,000 TOTAL 1,65,10,000

38PREPARED BY:



BALANCE SHEET FOR 2012-13

LIABILITIES AMOUNT ASSETS AMOUNT

Owner's Fund

AEZAZ 66,66,750

+Int. on cap . 5,33,340

-Drawings 20,00,000

Profit 11,89,446

ADIL 66,66,750

+Int. on cap. 5,33,340

-Drawings 20,00,000

Profit 11,89,446

Friends loan

Bank loan

Interest on inv.

Creditors

63,89,536

63,89,536

21,33,360

23,11,140

4,46,227

1,30,200

Land&Bldg. 43,000,00

Less: Dep. 4,30,000

Machinery 11,80,000

Less: Dep. 2,95,000

Other assets 4,60,000

Less: Dep. 55,200

Prepaid expenses

Debtors

Cash in hand

Cash at bank

38,70,000

8,85,000

4,048,00

1,40,200

45,00,000

30,00,000

50,00,000

TOTAL 1,78,000,00 TOTAL 1,78,000,00

39PREPARED BY:






Raw materials

Salaries

DEPRICIATION

Machinery 2, 95,000

Other assets 55,200

Building 4,30,000

Income tax paid

Utilities

Postage & telegram


Repairs& Maintenance

Telephone Expenses

Transportation

Insurance Premium


Interest on Inv.

Miscellaneous Exp.

Bonus &incentives

NET PROFIT

AEZAZ 16,76,559

ADIL 16,76,559

86,40,000

12,24,000

7,80,200

7,13,668

4,20,000

12,000

18,000

96,000

30,000

1,20,000

1,20,000

1,20,000

15,12,907

30,000

48,000

33,53,118

Sales

previous year profit(C.F.)

1,48,59,000

23,78,893

TOTAL 1,72,37,893 TOTAL 1,72,37,893

40PREPARED BY:





Owner's Fund

AEZAZ 63,89,536

+Int. on cap 5,33,340

-Drawings 20,00,000

Profit 16,76,559

ADIL 63,89,536

+Int. on cap

5,33,340

-Drawings 20,00,000

Profit 16,76,559

Friends loan

Bank loan

Interest on inv.

Creditors

65,99,435

65,99,435

21,33,360

23,11,140

4,46,227

1,10,403

Land& Bldg. 38,70,000

Less: Dep. 4,30,000

Machinery 8,85,000

Less: Dep. 2,95,000


Less: Dep. 55,200

Prepaid expenses

Debtors

Cash in hand

Cash at bank

34,40,000

5,90,000

3,49,600

3,70,400

40,00,000

36,50,000

58,00,000

TOTAL 1,82,00,000 TOTAL 1,82,00,000

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Raw materials

Salaries

DEPRICIATION

Machinery 2,95,000

Furniture 55,200

Building 4, 30,000

Utilities

Income tax paid

Postage &telegram


Repairs & Maintenance

Telephone Expenses

Transportation

Insurance Premium


Interest on Inv.

Miscellaneous Exp.

Bonus &incentives

NET PROFIT

AEZAZ 11,92,038

ADIL 11,92,038

86,40,000

12,24,000

7,80,200

4,20,000

10,05,935

12000

18,000

96,000

30,000

1,20,000

1,20,000

1,20,000

15,12,907

30,000

48,000

23,84,076

Sales

Previous year profit(C.F.)

1,32,08,000

33,53,118

TOTAL 1,65,61,118 TOTAL 1,65,61,11842






Owner's Fund

AEZAZ 65,99,435

+Int. on cap 5,33,340

-Drawings 25,00,000

Profit 11,92,038

ADIL 65,99,435

+Int. on cap 5,33,340

-Drawings 25,00,000

Profit 11,92,038

Friends loan

Bank loan

Interest on inv.

Creditors

58,24,813

58,24,813

21,20,400

22,97,100

4,46,227

86,647

Land & Bldg 34,40,000

Less: Dep. 4,30,000

Machinery 5,90,000

Less: Dep. 2,95,000


Less: Dep. 5,52,00

Prepaid expenses

Debtors

Cash in hand

Cash at bank

30,10,000

2,95,000

2,94,400

3,00,600

40,00,000

34,00,000

53,00,000

TOTAL 1,66,00,000 TOTAL 1,66,00,000

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PERSONNEL

DEPARTMENT

INTRODUCTION

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“Personnel Management” is concerned with all aspects of managing the human

resources of an organization. Specially personnel management involves determining the

organization human resources need and recruiting and selecting the best available employees.

The company has taken effective steps for recruiting of key personnel required

by the provision of section 217 (2A) of the company’s act 1950. Because without the help of

effective work force company cannot progress.

The personnel management is concerned with recruitment, selection, training,

job description, promotion, transfer, time keeping system etc. These are the functions of

personnel department. The H.R. department handles the areas of recruitment arranging and

planning of manpower, training and development programmed, job rotation and other

activities. It is primarily concerned with manpower resources or inputs. It is planning,

organizing, staffing, directing and controlling manpower in order to contribute individual and

social goals to the business organization.

“Personnel management is the planning, development, and compensation,

integration and maintenance to people for the purpose of contributing to organization,

individuals and social goals.”

MAN POWER PLANNING

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Manpower planning is an integral part of the overall planning of the any firm.

As we know that there are many employees comes and left out company due to died, retired,

promotion, transfer that’s why need the man power planning and to run business smoothly

and to optimum use of the existing man power in organization. It is process by which an

organization determines how it shall move from its current manpower position to desire

manpower position. Through planning the management strives to have the right number and

the right kind of people at the right place and at the right time to do right things, which results

in both the organization, and the individual receiving maximum long-range benefits.

Man power planning is the most important factor to any kind of business

without man business cannot run easily. So we are planning to man and improving their skill

in the business. so we are focus to recruitment, selection and appropriate procurement of the

people.

“The process of determining man power, recruitment and the means for

meeting these requirements in order to carry out the integrated plans of the organization.”

RECRUITMENT

Recruitment is a process of attracting people from the outside or inside world.

Recruiting is the discovering of potential applications for actual or anticipated organization

vacancies. In other words, is a “linking activity” bringing together those with jobs and these

seeking jobs.

“Recruitment is a process to discover the sources of manpower to meet the

recruitment’s of the staffing schedule and to employ effective measures for attracting that

manpower in adequate number to facilitate effective selection of an efficient working force.”

There are three methods of recruiting the personnel,

1. Direct method

2. Indirect method

3. Third party method

SELECTION

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The selection procedure is concerned with securing relevant information about

an applicant. This information is secured in a number of steps or stages. The objective of

selection process is to determine whether an applicant meets the qualification for a specific

job and to choose the applicant who is most likely to perform well in that job.

Every company has their own selection procedure. Model procedure for

effective personnel selection are as follow:-

1. Reception of applications

2. Preliminary interview

3. Application blank

4. Psychological tests

5. Interview

Khattani industries follow, following selection procedure,

Preliminary interview

Application blank

Reference letters.

Interviews.

Tests.

Medical Examination.

Placement.

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TRAINING AND DEVELOPMENT

Training is a process of learning sequences of programmed behavior. It is

application of knowledge. It gives people an awareness of the rules procedure or guides their

behavior. It attempts to improve their performance on the current job or prepare them for an

intended job.

In every company, there is a need for training because through training unit

can increase the efficiency of the workers. Only effective and efficient work force can lead to

the company towards success.

In “ our industries training is provided to each and every employee according

to the need. Sometimes ago, 50 marketing representatives are sending in training. They had to

send for marketing analysis, market survey and also “our industries” provides internal

literature about ‘Ayurveda’ to them. Workers have to work for 15 to 20 day under expert so

that they can work independently.

In chain industries without training employee cannot not done work easily.

Because, the one mistake of worker creates dangerous accident of working place so, we are

main focus to providing the appropriate training of employee so, less accident acre in work

place.

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PROMOTION AND TRANSFER

PROMOTION:-

“A promotion is the transfer of an employee to a job which pays more money

or some that carries some preferred status. The term promotion indicates that the promotion

means increases in liability and authority of employee then existing level.”

Promotion is a best way to motivating the employee or workers in every

organization. There is different criteria’s of the employees for the promotion.

In “our industries” at the time of promotion hey are considering two criteria

on the basis of that, they gives promotion to the employee which are as bellows;

Performance on job.

Behavioral attributes

Efficiency of worker

TRANSFER:-

A transfer is a horizontally or lateral movement of an employee for one job,

section, department, shift, plant or position to another at the same or another place where his

salary, status and responsibility are same.

In the organization there may be many cases of transfer lie employee’s

personnel problems, unfair good working condition etc.

In” our industries” transfer is happened because o following cases;

(1) To increase employee efficiency.

(2) Because of employee personnel problems and request.

(3) To fill the requirement of other department.

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PERFORMANCE APPRIASAL SYSTEM

In an organization improve and play an important role and therefore they are

required to be systematically appraisal for the purpose of knowing how they will fit in their

job. Whether they are performing to the satisfactory level or not. Performance appraisal is the

step where the management finds out how effective it has been at hiring and placing

employees. If any problems are identified steps are taken to communicate with employees

and to remedy them. “Performance Appraisal is a process of evaluating an employee’s

performance of a job in terms of its requirement.”

Most of the organization does to motivate the employees. In “our industries”,

there is no specific method of performance appraisal. It gives bonus or other benefits for a

good performance. Though there is no any method of performance appraisal, “our industries”

does it very well.

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EMPLOYEE WELFARE ACTIVITY AND BENEFITS

Before a few years ago, company has only profit maximization objectives. But

now, they have many objectives and provide benefits and labor welfare one of them.

To motivate workers and feel them secure our industries doing many such activities are as

under:-

Medical Facility:-

“Our industries” provides the facility of medical to their employees who are

working in organization.

Bonus:-

“Our industries” provides the facility of the bonus to their employee on well-

known festival like “Diwali”. Through this way organization can motivate the employee.

Special Leave:-

“Our industries” provides special leave to their employee on special occasion

like Marriage, and also in serious case. Company is not strict when they want to leave for the

genuine reasons if they have used their leaves.

Separate fund:-

A separate fund has been created whereby workers contribute one-day salary

and the company is contributing the same. The money in this fund is proposed of workers.

“Our industries” provides provided fund facility as per the government norms.

Safety of employees:-

A mass insurance is likely to be implemented in workers whereby each worker

would be insured of sum of Rs. 2 Laces.

Entertainment facility:-

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Our industries provide music system facility to the workers to increase

efficiency and to reduce burden of works. They have a good garden also if the employee feel

burden of work then they can go there to become fresh and enjoy good environment.

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MARKETINGMARKETINGDEPARTMENTDEPARTMENT

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INTRODUCTION

In the modern age marketing management plays a dynamic and vital role for the

business enterprise. Marketing activities start and end with Marketing Research.

According to the definition of Marketing Management approved by American

Marketing Management, it is a process of planning, promotion and distribution of ideas,

goods and services to create exchange that satisfy individual and organization goals.

This definition recognizes that Marketing Management is a process involving

analysis, planning, implementation and control that it covers goods, services and ideas that it

rests on the notion of exchange and that the goal is to produce satisfaction to the parties

involved.

\\

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MARKETING MIX

These 4 ingredients are closely interrelated. Under the system approach, the decision inane

area affects action in the other. Marketing mix decision constitutes a large part of marketing

management. Marketing manager is a mixer of all marketing ingredients and he creates a mix

of all marketing elements and resources. Marketing mix offers an optimum combination of all

marketing ingredients so that we can have realization of company goals such as profit, return

on investment, sales volume, and market share and so on. It is the profitable formula of our

marketing operations.

The elements or variables that make up marketing mix are only four.

• Decision on Product or service

• Decision on Price

• Decision on Promotion

• Decision on Place/distribution

Without 4p’s business cannot run very well. Because 1p’s are absent no other 3p’s

can work properly. So, we are follow all 4p’s.

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MARKET SEGMENTATION

According to Philip Kotler marketing segmentation can be defined as “The process

of classifying customers into groups exhibiting different needs, characteristics or

behavior is called market segmentation. Every market is made up of market segments”.

Marketing segmentation means to divide a market into different groups of customers.

Say for example,

If a market is divided into two segments, one consisting of customers of metro cities

and the other consisting of customers of non-metro cities, the criterion adopted is geographic

segmentation.

Thus, there are different variables, which can be used as criteria of market

segmentation like geographic, demographic, psychographic, behavioral etc. we follow

geographic market segmentation as our machinery chain market is concentrated mainly at

Delhi, Mumbai, Chennai and Bangalore.

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ADVERTISING & SALES PROMOTION

Advertising is any paid form of no personal presentation and promotion of ideas,

goods, or services by an identified sponsor. Organizations handle advertising in different

ways. In small companies, advertising is handled by someone in the sales or marketing

department, who works with an advertising agency. A large company will often set up its

own department, whose manager reports to the vice president of marketing. The department’s

job is to propose a budget, develop strategy, approve ads and campaigns, and handle direct

mail advertising, dealer displays, and other forms of advertising. Most companies use an

outside agency to help create advertising campaigns and to select and purchase media.

We are doing the advertisement of different media. And some time we are providing

the pamphlet of the customer.

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CHANNELS OF DISTRIBUTION (PROCESS)

(Chart no. 2. channels of product distribution)

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COMPANY

SELLING REPRESENTATIVE

Industry


PRESENT POSITION & FUTURE SCOPE

Naturally, Our management will be plans for future. To have plans for future and to

work for that is different things. All will have plans for future. But only those will be getting

success who will work for that plans.

Khattani industries has formulated their future plans and policies. The Future Plans and

Policies are as…..

1. Increase the quality of product to maximum.

2. To Give Better Satisfaction to Customer Through Better Quality Of Product

3. To Get the certificate of standardization.

4. To Get into the international market.

5. Increase the different types of chain.

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CONCLUSION

Conclusion means to bring an end to anything. Though this conclusion may be end of

my product report but this product report or feasibility report as push encouraged me to the

real business life. Any self created thing will be the best thing for anyone’s life though he

may be successful or failed. This kind of feasibility activity will help really anyone or

everyone become a successful entrepreneur if a proper attention is paid to project or business.

Today overpopulated unemployment is the biggest economic problem and so to avoid

that self employment can be started through developing this kind of small scale business and

for that this kind of feasibility study is helpful.

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APPENDIX

LIST OF TABLE

TABLE

NO.PARTICULARS GE NO.

Table – 1 Production capacity 14

Table – 2 Land 18

Table – 3 Building 18

Table – 4 Cost of land & building 18

Table – 5 Details of machinery 19

Table – 6 Other assets 19

Table – 7 Total fixed assets 20

Table – 8 Raw materials per month 20

Table – 9 Salary per month 20

Table – 10 Utilities 21

Table – 11 Depreciation 22

Table – 12 Repairs &maintenance 22

Table – 13 Rent & insurance 22

Table – 14 Administrative exp. 23

Table – 15 Selling& distribution exp. 23

Table – 16 Total working capital 24

Table – 17 Total capital investment 24

Table – 18 Source of finance 25

Table – 19 Means of finance 25

Table – 20 Interest on capital 26

Table – 21 Sales & cost of production 26

Table – 22 Total cost of production 27

Table – 23 Profit analysis 28

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List of Chart

Figure No. PARTICULARS Page No.

Chart – 1 Production Process 16

BIBLIOGRAPHY

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It is too difficult to prepare such a project report without anyone’s help. Certainly, in the

preparation of this project report, I have taken helps of so many factors. They are,

Desai Vansant, Project Management,

2nd Edition, 1999, Himalaya Publishing House.

Kapoor Sudarshan, Marketing Management,

1st Edition, June 1997, S. K. Publisher.

Sharma Ravi. K. & Gupta Shashi K, Finance Management,

4th Edition 2003-04, Kalyani Publishers

Books of machinery chain Association, etc

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product project report on machinary chain

Documents