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Sri Sri Institute of Management StudiesMargao, Goa

Sub : International BusinessProject Report On Export of Amla Candy (Amalaki)

Submitted to: PROF. Bhaskar Assoldekar

Prepared By:Nitish Dukle

Nilesh Gadkari

Deepti Kolvenkar

Shalfin Barretto


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Date of Submission: 21st January 2013


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AKNOWLEDGEMENT

It is our pleasure to be indebted to various people, who directly or indirectlycontributed in the development of this work and who influenced our thinking,

behaviour, and acts during the course of study.

First, we express our sincere gratitude to Dr. Pradeep Salgaocar, worthyDirector, Sri Sri Institute of Management Studies, Margao, for providing us

necessary facilities to complete this project.

We are thankful to Professor Bhaskar Assoldekar for his constant support,cooperation, and motivation provided to us during the project. He was always

available with his inspiration and blessings.

We would like to express our deepest appreciation to Mr. Uday Divekar for his

patience and assistance. Without his persistent help this project would not

have been possible.

Lastly, we Bow down to the almighty in deep reverence for making us worthy

of his bounty.


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Table of Contents

Sr.No Topic1 Introduction2 Product information3 Organizational structure4 Product5 Packaging6 Analysis of the exporting country7 Reasons for exporting8 Competition9 Statutory requirements for setting up the company10 Documents and certification required for export of

Amla candy

11 Regulations of Importing Country12 Marketing and Sales promotion13 Subsidies14 Segmenting, Targeting and Positioning15 Production process16 Suppliers Analysis17 Client Details18 Pricing Strategy


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19 Bibliography


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Introduction

Company Profile:-We have established a company which is named as Emblica Exports Pvt. Ltd. ,

where Emblica Officinalis is also known as Indian Gooseberries, which is most

often known as Amla in India. The companys main focus will be to export

Amla candy.

The Amla (Indian gooseberries) candy will be sold under the brand name

AMALAKI. The companys operations will focus on collection of amla candy

which is processed, packaged and labelled from Lonavala and sent to Emblica

Exports Pvt. Ltd., Goa, wherein it will be further packed in mini and master

cardboard, and will be transported toJawaharlal Nehru Port Trust (JNPT),Mumbaithrough use of Roadways mode of transportation.

Address of the Company (Warehouse/Office)Emblica Exports Pvt. Ltd.

Nessai Industrial Estate

Navelim Margao Goa


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Product Information

Candied fruits:They are also known as crystallised fruit. Basically they are made by

submerging fruit pieces in sugar syrup solutions of gradually increasing

strength, then drying them. During the soaking process, the sugar is absorbed

by the fruit and moisture is lost from the fruit. And hence, it prevents the fruit

from getting fungus etc.

Shelf-life:The preservation wholly relies on the high sugar and the low moisture content.

They can be kept for several months or years when stored in a cool dry place,

away from direct sunlight.

Preserves:They are prepared by soaking mature or fully grown fruits in sugar solution

and keeping them in syrup.


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Quality control points: Use only fully mature or fully grown fruits at the hard stage without

bruising or damage.

Use only refined, granular white sugar or rock sugar. Weigh all ingredients to the correct formulation. To be efficient, it is essential to recycle the syrup solution and use the

same for several batches always adjusting the Brix value to the required

level by adding more sugar. On the other hand, re-use the syrup

solutions only 3 to 4 times, as the heating required to dissolve the extra

sugar begins to pass on a burnt taste to the syrup.

Checking the correct sugar content by using a refractometer. Checking the correct fill and weight before sealing the bags. Use 400 gauge polypropylene bags as they provide greater protection

against moisture.

AMLA CANDYAmla candy is form of Amla which is coated with sugar, honey or flavourings

like saffron or cardamom. Children who do

not like to eat Amla can eat Amla candy

happily. Amla contains many nutrients, it is

abundant with Vitamin C and is beneficial

for our body no matter in what form it is

eaten. Amla strengthens our digestive

system and it increases the resistance power

of our body. It is also used in the making of


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many herbal medicines. Eating Amla regularly will help you maintain good

health.

Benefits : Improves the bodys resistance against diseases Gives relief in cases of stomach and digestion problems Strengthens heart and brain activity Promotes healthy functioning of the

cardiovascular system

Regenerates bodily tissues through highlevels of antioxidants

Increases the production of red blood cells Improves sight functions Is beneficial for hair growth

Organization Structure


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Note: There will be 10 workers and 2 watchman.

Product

Managing

Director

Marketing &

Sales department

Logistics

department

Documentation

department

Workers

Financial

Department

Personal

assistant


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Name ContentsAmalaki 50 gmsAmalaki 250 gms


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Packaging

The link between food packaging and consumer protection is of highsignificance. A package is a vehicle of safety and achieves the objective of

delivering safe, wholesome, nutritious food to the consumer. To safeguard the

interests of the consumer and the society at large, Packaging Laws and

Regulations have been introduced by the Government.

The products will be packaged in two different sizes which will contain 50

gms and 250 gms, which will be packaged in food grade Polypropylene bags

which is known as heat-sealable and provides greater protection againstmoisture and air or Static Shielding bags which help keep the contents protect

against moisture.


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Corrugated boxes will be used for

further packing the products

which initially in mini box and

later will be packed in a master

box. the master box will contain all

the details like box dimensions,

importing company name etc


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Pouch Sizes:Weight Dimensions (w x l)

50 gm 4 x 6 inches250 gm 5 x 6 inches

Corrugated Box Sizes:Name DimensionsMini Box 30.5x 19x 10.5 cms


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Master Box 63x 40x 23 cms

Analysis of the Exporting CountryThe Export of Indian Gooseberries (Amla Candy) in the Brand name Amalakiwill be carried out in Slovakia and Czech Republic. The various reasons madeus select these countries are

Slovakia is a high-income advanced economy with one of the fastestgrowth rates in the European Union.

It joined the European Union in 2004 and the Eurozone on 1st January2009.

Slovaks are associated by the highest percentage of Cardiovasculardiseases and heart related deaths (according to 2011 OECD) in Europe

and the highest in the world.

Forecasts says that the Slovak economy the 3rd highest GDP growth inthe EU-27 for 2007.

The GDP per capita in Bratislava (the capital) is three times higher thanin the poorest provinces of the country. In fact, it is 30% above EU

average, and second in Eastern Europe only after Prague.

In 2010, Slovakia grew by 4.0% which was the highest growth amongEU member states.

The minimum wage in Slovakia is set at 307 per month, and theaverage salary for year 2010 was 769 per month.


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Reasons for Exporting

Firstly the Client (Everest Ayurveda) to whom we are exporting the Amla

candies is basically is a czech-slovak-nepalese company which, in agreement

with Indian tradition, spreads deeper understanding about ayurvedic

medicine, healthy way of life, using Himalayan herbs and about inner

dimensions of oneself.

Since the people all around the world is driving towards health conscious and

it is also seen that these countries Slovakia and Czech Republic have a great

potential. Although Amla (Indian gooseberries) are often considered for its

high medicinal and nutritional value. Since it is not a medicine or a drug, but a


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processed crystallized fruit, which does not contain any harmful substances

and be consumed as a snack after food or so.

However, the economy structure of these is doesnt look much appealing but

an effort can be made through which the people of these countries can be

educated and given knowledge about the nutritional value it contains.

Capturing the untapped market, although there are competitors in thesecountries offering the similar kind of products, the pricing also has been kept

low so as to enter the market.

There is a potential demand for Amla Candy in Slovakia and Czech Republic.

Amla candies are like dry fruit and are consumed by all categories of

population.

Usually people from Slovakia and Czech Republic prefer eating Amla candy

because it excellent for teeth, gums, bones as well as skin blood etc.

Hence increase in the consumption to get nutritional benefits it will result into

more Demand for Amla candy.

Competition

Major competitors from India who export to East European Countries are


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Kamdhenu FoodsMr. Tanmay Shah (CEO)

'Matruchaya' Mulla Wadi Opp. Anand Nagar Society

Valsad - 396001, Gujarat, India

Mobile:+(91)-9974123838

+(91)-9974124040

Telephone:+(91)-(2632)-253066

Multi InternationalMr. Bheru Vyas

No. 3, Sopan Complex, Near AMTS Bus Stand, Chandkheda

Ahmedabad - 382 424, Gujarat, India

Email:[email protected]

Mobile:+(91)-9998177155

+(91)-9429129897
mailto:[email protected]?subject=Multi%20International%20Mail%20Through%20IndiaMART.commailto:[email protected]?subject=Multi%20International%20Mail%20Through%20IndiaMART.com


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Statutory Requirements required for

Setting up the company Certificate of Incorporation Import Export Code ( IEC )

o Documents required for making an application for IEC Number: Application form (in duplicate) Company profile (in duplicate) True copy of Income tax PAN account number. True copy of Sales Tax Certificate. Government fees. Bank certificate as per format. Full address of branches in India and Abroad (if any) Three passport size photographs duly signed on the reverse. SSI Registration copy duly certified. Declarations in duplicate. Memorandum of Association Articles of Association Registration of the company

An application form has to be filled along with a fee of Rs 300/- has to be paid

together with the above said documents. The IEC number is then allotted in 15days period.

MOA, AOA and Registration of the company:These documents will be prepared by a legal representative and the

Directorate of Industries Trade and Commerce provides the maximum help in

doing the same.


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Certificate of originTo get the Certificate of Origin an indemnity bond has to be made on a Stamp

paper of Rs. 100/-. Along with is an application form has to be attached and

also copy of an invoice. This certificate is issued by the Chamber of Commerce.

The fees structure is as follows.

Criteria AmountUp to 5 Lakh Sum of Rs 250/-Up to 75 Lakh Sum of Rs 500/-Above 75 Lakh Sum of Rs 1500/-

Documents and Certification required

for Export of Amla Candy

IEC Code:IEC number is an important registration required by an

exporter/Importer. No international trade can take place without this

number. This is issued by Director General of Foreign Trade office in

India.It is a permanent number and has no expiry date. It is valid bothfor imports and exports. It is valid for all products.IEC is of ten digits.

Registration with Food and Drug administration (FDA)

Registration with Export Promotion Councils(EPC):The basic objective of EPC is to promote and develop exports of the

country. Each council is responsible for a particular group of products,

projects and services. The EPC keeps track of the trends side by side and

opportunities in international markets for goods and services, and assist

their members to take advantage of the opportunities.


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Invoice:It is a fundamental and basic document. It is prepared by an exporter

and sent to the importer for necessary acceptance. An invoice gives an

idea to the buyer of all the terms and conditions of an invoice. Itcontains the name of the exporter, importer, consignee, and description

of goods. It is required to be signed by an exporter or his agent.

Packing list :It is a consolidated statement in a approved format detailing how goods

are packed. It is an useful document for customs at the time of

examination, and for the warehouse keeper of the buyer to maintain a

record of the inventory. The packing list will have many details which

are common as in the invoice but it does not specify the unit rate and

the value of goods.

SDF (Statutory Declaration Form):A document submitted to customs authorities by exporters verifying

that shipping bills are accurate and complete. An exporter confirms

on form SDF that the amount paid by the buyer is the same as the

full export value stated on the shipping bill.

CENVAT Declaration (duty draw back)Export Value Declaration:


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ENS DeclarationPurchase Order :

PO is a commercial document issued by a buyer to a seller, indicating

types, quantities, and agreed prices for products or services the seller

will provide to the buyer. Sending a purchase order to a supplier

constitutes a legal offer to buy products or services. Acceptance of a

purchase order by a seller usually forms a contract between the buyer

and seller, so no contract exists until the purchase order is accepted. It is

used to control the purchasing of products and services from external

suppliers.

Certificate of Origin:This indicates that the goods which are being exported are actually

manufactured in a specific country mentioned therein. It is useful for

the clearance of goods from the customs authorities of the importing

country. Normally, this certificate is issued by the Chamber of

Commerce.

Fumigation CertificateTheFumigation Certificate, in respect of international shipping of seafreight, also referred to as a'pest control certificate'is the proof thatwooden packing materials used in international sea freight shipping e.g.

wooden pallets and crates, wood, boxes etc have been fumigated or

sterilized prior the international shipment.

Letter of Credit (LC):


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It is an arrangement wherein a Bank (SBI) guarantees on behalf of the

buyer to make payment to the seller, upon presentation of documents

specified in the LC.

Regulations of the Importing Company

Import LicenceBill of Lading:

This document is issued by the Shipping Company or its agent. It

acknowledges receipt of goods mentioned in the bill for shipment on

board of the vessel. It is also an undertaking to deliver the goods in the

like order and condition as received. It is generally made out in sets of

three originals all duly signed by the master of the ship or the agent of

the shipping company.All original Bill of Lading should bear StampDuty. Extra copies of Bill of Lading will be marked as NON

NEGOTIABLE COPY and are only issued for record purposes. These

copies cannot be used for taking delivery of goods.

Shipping bill:Shipping Bill is document required to seek the permission of customs, to

export goods by sea/air. It contains a description of export goods,

number and kind of packages, shipping marks and numbers, value of

goods, name of the vessel, country of destination etc.


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Marketing and Sales Promotion

To carry out various marketing and sales promotions in Slovakia and Czech

Republic it will be very difficult since there is a huge gap of different barriers

such as language, lifestyle, habits etc. Therefore to conquer this barrier we will

register our company (Emblica Exports Pvt.ltd) with APEDA (Agriculture

Processed food products Export Development Authority) & Registration with

Export Promotion Councils.

Assistance is provided regarding development of website advertisement,Knowledge of packaging is given so as to manage on packaging and ensure

safety of goods and also the quality of the product.

Export Promotion Councils(EPC):EPCs are non-profit, autonomous,professional bodies. They provide commercially useful information to their

members. They also offer professional advice in areas such as technology

upgradation, quality and design improvement, standards and

specifications, product development and innovation. It also organizes visits


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abroad to explore market opportunities. It ensures participation in trade

fairs, exhibitions and buyer seller meets. It also helps in promoting

interaction between the exporting community and the Government both at

the Central and State levels.

Promotions through Internet i.e. B2B websites for e.g. www.alibaba.com,having website that will help build up contacts and also allow potential

customers to be aware of the same. Creating own website that is visible to

all the people around the world, where one can go through the product

details etc.

Events Sponsored by APEDA: APEDA allows participation in trade fairs,exhibitions, events for promotion of the products and also sponsors the

same. So also the publicity and promotion through preparation of product

literature, publicity material, advertisement, film etc. is done by APEDA.

Activities like buyer-seller meet, product promotion, exchange ofdelegations, participation in exhibitions/fairs/events etc are also promoted

by APEDA

Subsidies

Starting of the BusinessThe Directorate of Industries Trade and Commerce (DITC) is responsible for the promotion,

development and regulation of Micro, Small and Medium Enterprises/Industries within the

State of Goa. In addition to this, DITC also plays a major role in facilitating and coordinating

activities related to industrial development.

DITC Benefits provided by government


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25% give back of our actual cost which we have incurred for starting up the company.

Tax exemption for 5 years so as to help us stabilize our business.

Bank Details for Letter of Credit:StateBank of India

Pajifond Branch

Margao Goa

Segmentation Targeting and Positioning


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The segments to whom we have targeted are the people who want nutritional

value (vitamin C) and the school going children who can consume it and

enrich their vitamin C.

Positioning: Our Amla candy will be positioned as healthy candy with perfect

health.

Positioning Statement: Eat healthy and be healthy


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Production Process:

Collecting Cleaning Sorting

WashingBoiling &

DrainingShredding

Soaking Draining Sun Drying

Packaging


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Production Process:

CollectionIn this phase, the raw Indian Gooseberries (Amla) are procured from

Banaras which is also known as Varanasi or Kashi, which is a city in

Utter Pradesh. Due to the superior quality, colour, size and taste, these

gooseberries are considered best with regards to its features.

CleaningOnce the collection of raw Indian gooseberries is done, they are cleaned

which means where the unwanted particles like stones, leaves etc are

removed. In this phase immature, damaged and diseased fruit is

removed.

SortingSorting is a process whereby the gooseberries are sorted based on their

qualities according to their size, weight, colour and maturity. This is

mostly used so that the gooseberries are of uniform size, and based on

their sizes and colour their characteristics differ.


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WashingOnce the gooseberries are cleaned, they need to be further washed in

chlorinated water so that the hygiene and quality is maintained.

Boiling & DrainingIn this phase, these gooseberries are boiled for 5-6 minutes and later

drained. Once they are boiled, they are cooled down and drained so that

it is ready to go for shredding process.

ShreddingIn this process, the gooseberries are cut into uniform sizes and the seed

is removed with the help of machinery (amla shredder). Once after this

is done, the cut pieces are once again sorted based on the sizes if any

SoakingIn this process the cut gooseberries from the amla shredder is taken to

soak in syrup made from rock sugar and honey. Here they are soaked

for in the syrup for 24 hrs so that the bitter strong taste of amla is

overtaken by sugar and honey.

DrainingOnce they are soaked, they are drained from the syrup and are ready for

drying in the sun. Normally draining can be done manually by using

big spatulas with the help of the work force or the same can be done by

using machinery.

Sun drying


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Once the gooseberries are drained they are preceded for sun drying, Sun

drying refers to spreading these fruits on mats or polythene sheets on

the ground, or by constructing a raised platform and covering the frame

with mats under the bright sun for 3-4 days. This can also be done in

mechanical way also, which can be done by either using solar dyer or

mechanical tray dryer, or electrical tray dryer. But in this case the most

effective way is drying under the bright sun.

PackagingOnce the drying process is done, the final product is packed in plastic

pouches which are made up of material called Polypropylene which is

known as heat-sealable and provides greater protection againstmoisture and air or Static Shielding bags. And thereby making it ready

for transportation

Process:


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Suppliers analysis

Loading of the

goods

Transportation

Unloading of the

goods

Packaging &

Storing

Loading of goods

into Container

Transportation

Unloading of

Container to the

vessel

ShippingUnloading of goods

from the vessel

Delivery of the

Goods


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The raw amla( Indian gooseberries) is procured from Banaras from the farms

and then later transported to Lonavala for further processing the same. After

the processing is done it is later brought from Madal Bal Exports Pvt Ltd.

where they do exports to Denmark of textiles, bedcovers, clothing and

handicrafts.

Manufacturer DetailsMadal Bal Goa Exports Pvt.Ltd.

Lane 1 ,St.Mary's Colony. Miramar,

Panaji. GOA 403001Telephone:+91 (832) 2465942

Transporter DetailsRajesh Roadways

Samadhan Apartment, Station Road, Opposite Crunet Ice Factory,

Station Road, Margao, GA 400802

0832 271 4312

Packaging DetialsAce Packers

P No 28,Bethora Industrial Estate Road, Bethora, Ponda, 403401

Rajiv Kala Mandir Road, Shanti Nagar, Kurtarkar Nagari, Ponda, Goa

0832 233 0712


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Client Details

Name of the Company: Everest AyurvedaEverest Ayurveda s.r.o. is a czech-slovak-nepalese company which, in

accordance with Indian tradition, spreads deeper understanding aboutayurvedic medicine, healthy way of life, using Himalayan herbs and about

inner dimensions of oneself. In Czech Republic and in Slovakia, the company

was established in 2004 in cooperation with Nepalese ayurvedic doctor Dr. Ka

Dev Jha.

The objective of this company is manufacturing, import and wholesale activity

of traditional ayurvedic products from Nepal and India together with Japanese

fragrance mixtures (incense). Everest Ayurveda s.r.o. has its headquarters in

Prague, Czech Republic, branch office in Bratislava, Slovakia, and

manufacturer of herb products in Kathmandu, Nepal. The company also

exports to other European countries.

Company Head Office:Address:

EVEREST AYURVEDA, s.r.o.Lomnickho 812/6Praha


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140 00Czech RepublicContact:Tel.: +420 241 404 004

Contact Name:Kritartha Bradatel. 00420 604 609 110e-mail:[email protected]

Pricing Strategy:

The pricing of the product will be charged in Euro, since Slovakia and Czech

Republic are East European Countries and have potential to buy the products.

The pricing strategy breakdown is following:

Cost 50g 250gPrice (Rs) 31 155

Transportation cost 0.806467 0.806467Labour cost 8.645533 8.645533

40.452 164.452Profit 10.548 65.548FOB Price(Rs) 51 230

The currency rate of US Dollar and Euro as on 18th January 2013

ForeignRate of exchange of one unit offoreign currency equivalent to Indian


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Currency rupees(1) (2) (3)

(a) (b)(For ImportedGoods) (For ExportGoods)

1. EURO 73.60 71.752. US Dollar 55.25 54.25


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Cost of starting the Company:START UP COST

PARTICULARS TOTAL

Registration of Company 5000

Panchayat 360

IEC Code 8000

Registration Fees Chamber of Commerce 250

PAN Card Registration of the co. 300

Export Inspection Agency 650

Export Promotion Council 25000

OFFICE

Building (Deposit of office building in advance) 120000Telephone 1000

computers 11000

Broadband 2000

Printer 12000

Air Conditioner 30000

FURNITURE AND FIXTURES

Chairs 22000

Tables 130000367560

Capital bought into business (@100000 each) 400000

Initial Outlay 32440

Salary CalculationSalary Structure

Assistant 8500Accountant 10000Marketing & Sales 8000Logistics 5500Documents 6000Workers (300*10) 3000Watchman 6000


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Total 47,000

Income Statement for the year 1st April 2013 to 31st March 2014Income Statement

Particular Amount

Sales 28446336

COGS 18588096

GP 9858240

Operating exp

Salary 546000

Electricity30000

Maintenance 60000

Advertisment 150000

Water bill 6000

Rent 240000

Traveling exp 180000

Printing and stationary 36000

Telephone bill 18000

Broadband 9000

Transportation Cost 5897467.2

Insurance 442685

PBT 2243087.8

Tax @ 30% 672926.34

PAT 1570161.5


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Bibliography

www.madalbal.com http://www.agriculturesource.com http://dfda.goa.gov.in http://www.fao.org
http://www.madalbal.com/http://www.madalbal.com/http://www.agriculturesource.com/http://www.agriculturesource.com/http://dfda.goa.gov.in/http://dfda.goa.gov.in/http://www.fao.org/http://www.fao.org/http://www.fao.org/http://dfda.goa.gov.in/http://www.agriculturesource.com/http://www.madalbal.com/