radhe plastic - manan rawal 2
DESCRIPTION
project report on radhe plastic enterpriseTRANSCRIPT
A
Product Project Report
OnRadhe Plastic
A Project Report
PREPARED BY
MANAN RAWAL
CLASS:- B.B.A Semester -5
ROLL NO.:- 6
ACD. YEAR
2015-2016
COLLEGE
GRACE COLLEGE, RAJKOT
SUBMITTED TO
SAURASHTRA UNIVERSITY, RAJKOT
GUIDED BY
DHARA VYAS
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DECLERATION
I Undersigned MANAN RAWAL a student of BBA hereby declare that the project work presented in this report is my own and has been carried out the guidance of DHARA VYAS of Grace College Rajkot.
This project has not been submitted to any other university by anybody for any other examination.
Date:
Place:
MANAN RAWAL
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PREFACE
Indian management scenario seemed to be mixed hopes at
the commencement of the nineties. Most of the Small Scale Industries
in the country are handicapped& so there is an urgent need for
substituting the traditional management. In the syllabus of T.Y.B.B.A.
university has introduced the subject “ENTREPRENEURSHIP &
MANAGEMENT OF SMALL BUSINESS”. The main purpose of
introducing in the syllabus of T.Y.B.B.A. is to develop the skill in
problem solving & decision making in management of small business.
Saurashtra University has included report preparing in this subject. So
I have chosen to make project on molding safety cap.
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ACKNOWLEDGEMENT
On this successful completion of my report, I must acknowledge the
support & timely help of some personalities, which had been almost
important for me in completing this report.
I would like to express my deep gratitude to Ms. Dhara
VYAS for her co-operation and guidance.
I should also thank my parents, friend all those who have helped me
directly or indirectly in preparing this report.
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INDEX
Sr. No. Particulars Page
no.
1 Introduction 6
2 Project at a glance 7
3 Bio data of the promoters 8
4 Location and site selection 10
5 Production details 11
6 Product of the unit 12
7 Flow chart of production process 13
8 Market development 14
9 Market segmentation 15
10 Financial details 19
11 Ratio analysis 62
12 Disclosure of accounting policy 69
13 Risk factor 70
14 Future plan 71
15 Conclusion 72
16 web biography 73
INTRODUCITION OF INDUSTRY
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There are already many competitors of our product in the market as safety cap is one of the Fast Moving Consumer Goods. But as the quality of our product is better, it will achieve the desired position in the market in future. As we will produce qualitative products with the cheapest price, it will be accepted by the target consumers and will satisfy their demand. This one of the main points our unit will consider and work accordingly.
The safety cap is the product which is used in all manufacturing of electric products. So market of our product will be huge in the future. So our product must have some unique features than others and we are trying to concentrate more on this point to beat this cut throat competition.
The main objective of our unit is to provide the best quality to the consumers and by this way we will try to capture the maximum share in the market.
PROJECT AT GLANCE
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NAME OF THE UNIT RADHE PLASTIC REGISTERED OFFICE PLOT NO 109, VAID WADI
G.I.D.C RAJKOT - 360004
LOCATION OF THE PLANT PLOT NO 109, VAID WADI G.I.D.C RAJKOT- 360004
FORM OF ORGANISATION SOLE PROPREITOR FIRM
NAME OF THE OWNER MANAN RAWAL
NATURE OF BUSINESS SERVICES SECTOR
SIZE OF THE UNIT SMALL- SCALE
SSI REGISTRATION APPLIED FOR
SUBSIDY REGISTRATION APPLIED FOR
COST OF THE PROJECT 11,34,350
MEANS OF FINANCE OWN CAPITAL
COST OF CAPITAL 10%
RETURNS ON INVESTMENT55.4%
IMPLEMETATION SCHEDULE
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The major activities in the implementation of the project
have been listed and the average time for implementation is
estimated at 5 months.
No.Particulars
Months
1. Scheme Preparation & Approval 1
2. SSI Provisional Registration 1-2
3. Installation of Machinery 4-5
4. Recruitment of technical personnel 1
5.Provision of other facilities like water,
electricity etc.1
Trial & production will start from
5 th month onwards
OWNER’S BACKGROUND
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NAME MANAN RAWALACADEMIC QUALIFACTION BBA (MARKETING &
FINANCE)CONTACT NO 9898012345ROLE IN THE UNIT MARKETING / FINANCEFINANCIAL CONTRIBUTION 100% OWNED CAPITALEXPERIENCE TAKEN TRANING IN
SHREE RAM METAL
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LOCATION & SITE SELECTION
Introduction
The unit is located at such area where it can avail the
concerned business easily. Moreover exact location is a place where
there us minimum of cost and maximum profit can be achieved.
Before setting a unit, entrepreneur has to keep in mind the
various location factors such as availability of land, power, water such
infrastructure facilities availability of labour etc.
(1) Location of the Factory :-
It is quite known that vaid wadi is an industrial area and we can
obtain any facility as a convenient way. Surrounding area is
containing a big market for the safety cap. There are many other
facilities or factors which inspired us to choose proposal location.
(2) Distance from the Raw Material Market:-
There is more transportation facility because of center point of the
city. From this we can easily get the Raw Materials like Plastic. We
purchase Raw plastic Plastic Granule from Rajkot.
(3) Skilled labour available:-
For the production of our product we require skilled and unskilled
workers. So location of the factory is in city, we can get labours very
easily. So for our production this place is fulfilling our satisfaction of
labour.
Our industry is very near from Bhaktinagar Railway Station. So it
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is much benefited to our industry for Railway transportation.
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PRODUCT DETAIL
Plastic Safety Cap:-
This caps are used to give safety to delicate products from physical shocks, the caps are to be placed on outer covers of any products according to their respective sizes.
The product will be made according to demand and sizes of product, these caps are easy to place and remove and strong enough to sustain the product in physical damages and shocks occurred during transportation, shifting, placing and anything that is happened before unpacking the product.
The product is made from 1st class plastic quality which makes the product enough strong and sustainable thus it makes the firm more reliable for customers.
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PRODUCT OF THE UNIT
Safety cap
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FLOW CHART OF PRODUCTION PROCESS
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MARKET DEVELOPMENT
Mkt. development involves creating or expanding a mkt. to new or
existing products and/or increasing the value of these products. The
strategy of the product will depend on the current stage in the product
life cycle. Once more people know, a significant challenge is going to
get more people to actually try the product. This is due to vast choices
of other products that consumers can consume.
The strategic planning process in order to make good
investment decision with respect to how much to spend on mktg. &
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how to allocate this spending among opportunities available e.g.
advertising & price promotions. It is useful to go through a strategic
planning process.
As this is a new product in the mkt. so, one has to see that
there should be cost reduction by improving the quality. So the
maximum use of available resources can work at this stage but again
produce. There will be a considerable beginning power because of
large quantities purchased. Firm can adopt new technology and can
develop research & develop department efficiently that allow superior
quality & performance here, the specialized product.
MARKET SEGMENTATION
Market segmentation is method for achieving for achieving maximum
market responsefrom limited marketing resources by recognizing
differences in the response characteristics of various parts of the
market. In a sense, market segmentation is the strategy of ‘divide and
conquer’ i.e. dividing market in order to conquer them.
Thus, in order to facilitate the marketing of is product the
marketing manager, sub divides a market into homogenous sub set of
customers having common in one set so that customers may be
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served better with district marketing mix. Such selection of sub sets as
homogenous group is called market segmentation.
Here market segmentation is on basis of:
1. Product wise
2. Geographical
PRICING POLICY
Price is an important element in the marketing mix. Arrival at the right selling price is essential in a sound marketing mix. Right price can be determined through pricing research and by adopting the test market techniques. A price policy is the standing answer of the firm to recurring problem of pricing. It provides guidelines to the marketing manager to evolve appropriate pricing decisions.
There are many policies for deciding price like mark up pricing policy, going rate pricing policy, etc.
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In my unit I will be using mark up pricing method for deciding price.
MACHINERY
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INSTALLED CAPACITY
Production Capacity 125kg/dayNo. of Working Days in a
month
30
No. of Working Days in a
Year
365
Production Capacity per
month
3750kg
UTILIZED CAPACITY
Production Capacity 100kg/dayNo. of Working Days in a
month
20
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No. of Working Days in a
Year
240
Production Capacity per
month
2000kg
FINANCIAL DETAIL22 | P a g e
Plant& machinery
Sr. no.
Particulars Qty. Rate. Amt.
1. Molding machine 2 150000 3000002. Grinder 1 10000 100003. Dye 2 45000 90000
Total 400000
Furniture & FixtureSr. no.
Particulars Qty. Rate. Amt.
1. Office storage 1 5000 50002. Office table 1 8000 80003. Office chair 3 2000 60004. Stool 5 200 1000
Total 20000
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Other fix assetsSr. no.
Particulars Qty. Rate. Amt.
1. Computer & printer 1+1 40000 400002. Telephone 2 2000 40003. Electrification - 40000 400004. Loose tools - 8000 80005. A.C. 1 30000 30000
Total 122000
Preliminary expenseSr. no.
Particulars Qty. Rate. Amt.
1. Telephone deposit - 5000 50002. Legal fees,
corporate fees. etc25000 25000
Total 30000
Total fixed assetsSr. no.
Particulars Amt.
1. Plant & machinery 4000002. Furniture & fixtures 200003. Other fix assets 1220004. Preliminary 30000
Total 572000
Working capital
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Sr. no.
Particulars Rate. Regular (per day)
Required (per month)
Per annum
1. Raw materials 70 7000 140000 1680000(per kg ) (100 kg) (20
working days)
Total 1680000
Salary & wagesSr. no.
Particulars Qty. Rate Per month Per annum
1. Factory staff Unskilled 2 6500 13000 156000 Skilled 1 5250 5250 63000
2. Accountant 1 4500 4500 54000
Total 273000
Other utilitiesSr. no.
Particulars Per month Per quitter (3 month)
Per annum
1. Water charges 400 1200 48002. Postage 500 1500 60003. Stationary 700 2100 84004. Transpiration
inwards(per month 2 time)
600 1800 7200
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outwards (per month 8 time)
2000 6000 24000
5. Repairs 1500 4500 180006. Power 7000 21000 840007. Packing(10rs per
bag)2000 6000 24000
8. Rent 10000 30000 120000
Total 296400
Working capitalSr. no.
Particulars Amt.
1. Raw materials 16800002. Salary & wages 2730003. Other utility 296000
Total 2249400
Project fundSr. no. Particulars Amt.1. Fixed capital 5720002. Working capital 562000
Total 1134350
Source of financeSr. no. Particulars Rate Amt.1. Owner fund (100%) 10% 1134350
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Total 1134350
Interest on capital(IOC)Sr. no. Particulars Rate Amt.1. Owner fund 10% 113435
Total 113435
Deprecation accountSr. no. Particulars Rate Value Amt. 1. Machine 15% 400000 600002. Other fixed asset 25% 122000 305003. Furniture 20% 20000 4000
Total 94500
Annual cost of productionSr. no. Particulars Amt. 1. IOC 1134352. Deprecation 945003. Other utility 2964004. Raw materials 1680000
Total 2184335
Sales forecastPer kg. Year Unit /annum Rate Amount
133 1 3192000 1.25 3990000
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135 2 3564000 1.35 4811400137 3 3781200 1.75 6617100140 4 4200000 2.00 8400000145 5 4350000 2.50 10875000
Schedule of fix cost & variable costSr. no. Particulars Variable Fix cost 1. Deprecation - 945002. IOC - 1134353. Salary 16380(60%) 109200(40%)4. Other expenses 177840(60%) 118560(40%)5. Raw materials 1680000 -
Total 2021640 435695
Fixed costSr. no. Particulars Amt. 1. Deprecations 945002. IOC 1134353. Salary (40%) 1092004. Other expenses (40%) 118560
Total 435695
Fixed cost / unit
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Total fixed cost / total no. of unit 0.14ps / unit
Variable costSr. no. Particulars Amt.1. Raw materials 16800002. Salary (60%) 1638003. Other expenses (60%) 177840
Total 2021640
Variable cost Total variable cost / total no. of unit 2021640/3192000 0.63ps/unit
Contribution / unit S.P. /unit – V.C. /unit 1.25-0.63 .062
B.E.P (%) {fixed cost /(fixed cost +profit)}*75 431695
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1st year
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Cost sheetParticulars Amt.Sales 3990000
+
Closing stock 332500
Cost of operation 4322500
Raw materials 1680000
Direct wages to workers Unskilled/skill 219000
Direct expenses & utility Water charges 4800Electricity 84000
Prime cost 1987800
Repairs 18000Deprecation 94500
Factory cost 112500
Salary of office staff Accountant 54000Preliminary return of 6000Stationary & printing 8400Postage & courier expenses 6000IOC 113435Out warts 24000Rent 120000Packing 24000In warts 7200
A+B+C 2463335
Profit (NPBT) 1859165
Trading accountParticulars Amt. Particulars Amt.Opening stock -Purchase 1680000 Sales 3990000Wages 219000 Closing stock 332500Power 84000Carriage inward 7200Gross profit 2332300
4322500 4322500
Cash accountParticulars Amt. Particulars Amt.
To capital 1134350 By fixed capital 572000To sales 3990000 Raw materials 1680000
By salary 273000Other utilities 296400By income tax 394000By balance 1908950
5124350 5124350
Profit & loss accountParticulars Amt. Particulars Amt.
Rent 120000 Gross profit 2332300Salary 54000Packing 24000Repairs 18000Preliminary expenses
6000
Deprecation 94500Stationary 8400Water charges 4800Postage 6000Transportation (out 24000
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wards)IOC 113435Income tax 39400
Net profit 1465165
2332300 2332300
Balance sheetLiability Amt. Assets Amt.
Capital 1134350
Machinery 400000-deprecation 60000
340000
Net profit 1465165
Fix assets 122000
IOC 113435 -deprecation 30500
91500
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Furniture 20000-deprecation 4000
16000
Cash 1908950Preliminary (30000-6000)
24000
Closing stock 332500
2712950
2712950
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2nd year
Purchas of raw materialsSr. no.
Particulars Rate (per kg)
Regular (per day)
Required (per month)
Per annum
1. Raw materials
72(per kg)
7200(100 kg)
158400(22 working
days)
1900800
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Salary &wagesSr. no.
Particulars Qty. Rate Per month
Per annum
1. Factory staff Unskilled 2 7150 14300 171600 Skilled 1 6000 6000 72000
2. Accountant 1 5000 5000 60000
Total 303600
Other utilitiesSr. no.
Particulars Per month Per quarter Per annum
1. Water charges 500 1500 60002. Postage 600 1800 72003. Transportation
In warts (per month 2 time)
700 2100 8400
Out warts 2200 6600 26400
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(per month 8 time)
4. Stationary 900 2700 108005. Repairs 2000 6000 240006. Power 7300 21900 876007. Packing (12 per
bag)3000(250
begs)36000 36000
8. Rent 12000 144000 144000
Total 350400
DeprecationSr. no.
Particulars Rate Value Amt.
1. Machine 15% 340000 510002. Other fixed assets 25% 91500 228753. Furniture 20% 16000 3200
Total 77075
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Cost Sheet
Sr. no.
Particulars Amt.
Sales 4811400+ Closing stock 481140
Cost of operation 5292540Contribution 4960040
- Opening stock 332500
Raw materials 1900800 Direct wages to workers
Skilled \ unskilled 243600
Direct expenses & utilities Water charges 6000Power 87600Prime cost 2238000
Repairs 24000Deprecation 77075Factory cost 101075
Salary of office staff Accountants 60000Preliminary return off 6000Stationary 10800Postage 7200IOC 271000Out warts 26400Rent 144000In warts 8400
A+B+C 2908875
NPBT (profit) 2051165
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Cash account Particulars Amt. Particulars Amt.
To balance 1908950 Raw materials 1900800To sales 4811400 By salary 303600
Other utilities 350400By income tax 459000By balance 3706550
6720350 6720350
Trading accountParticulars Amt Particulars Amt
Opening stock 332500 Sales 4811400Purchase 1900800 Closing stock 481140In warts 8400Wages 243600Power 87600
Gross profit 2719640
5292540 5292540
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Profit & loss accountParticulars Amt. Particulars Amt.
Rent 144000 Gross profit 2719640Salary 60000Packing 36000Repairs 24000Deprecation 77075Stationary 10800Water charges 6000Postage 7200Out warts 26400IOC 271000Income tax 459000Preliminary 6000
Net profit 1592165
2719640 2719640
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Balance sheetParticulars Amt. Particulars Amt
Capital 2712950 Machinery 340000
IOC 271000 -deprecation 51000
289000
Net profit 1592165Furniture 16000-deprecation 3200
12800
Other fixed assets 91500-deprecation 22875
68625
Preliminary 24000 -deprecation 6000
18000
Cash balance 3706550Closing stock 481140
4576115 4576115
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3rd year
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Purchase & raw materialsSr. no.
Particulars Rate (per kg )
Regular (per day )
Required (per month )
Per annum
1. Raw materials 75(per kg)
7500(100 kg)
187500(25 working
days)
2250000
Salary & wagesSr. no.
Particulars Qty Rate Per month
Per annum
1. Factory staff Unskilled 2 7500 15000 180000 Skilled 1 6500 6500 78000
2. Accountant 1 5500 5500 66000
Total 324000
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Other utilitiesSr. no.
Particulars Per month Per quarter Per annum
1. Water charges 700 2100 84002. Postage 600 1800 72003. Transpiration
In warts (per month 2 time)
800 2400 9600
Out warts(per month 8 time)
2400 7200 28800
4. Stationary 1000 3000 120005. Repairs 2500 7500 300006. Power 7500 22500 900007. Packing (12 per
bag)3300(275
bags )9900 39600
8. Rent 17000 51000 204000
Total 429600
DeprecationSr. no.
Particulars Rate Value Amt
1. Machinery 15% 289000 433502. Other fixed assets 25% 68625 171503. Furniture 20% 12800 2560
Total 63060
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Cash accountParticulars Amt Particulars Amt
To balance 3706550 Raw materials 2250000To sales 6617100 By salary 324000
Other utilities 429600By income tax 831150
By balance 6488900
10323650 10323650
Trading accountParticular Amt Particulars Amt
Opening stock 481140 Sales 6617100Purchase 2250000 Closing stock 661710In warts 9600Wages 258000Power 90000
Gross profit 4190070
7278810 7278810
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Profit & loss accountParticulars Amt Particulars Amt
Rent 204000 Gross profit 4190070Salary 66000Packing 39600Repair 30000Deprecation 63060Stationary 12000Water charges 8400Postage 7200Out warts 28800IOC 457600Income tax 831150Preliminary 6000
Net profit 2436260
4190070 4190070
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Balance sheetParticulars Amt Particulars Amt
Capital 4576115 Machinery 289000
IOC 457600 -deprecation 43350
245650
Net profit 2436260 Furniture 12800-deprecation 2560
10240
Other fix assets 68625-deprecation 17150
51475
Cash balance 6488900
Closing stock 661710
Preliminary 18000Deprecation 6000
12000
7469975 7469975
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4th year
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Purchase of raw materialsSr. no.
Particulars Rate (per kg)
Rate (per day)
Required (per month)
Per annum
1. Raw materials 80 (per kg)
8000 (100 kg)
200000 (25
working days)
2400000
Total 2400000
Salary & wagesSr. no.
Particulars Qty Rate Per month
Per annum
1. Factory staff Unskilled 2 8000 16000 192000 Skilled 1 7000 7000 84000
2. Accountant 1 6000 6000 72000
Total 72000
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Other utilitiesSr. no.
Particulars Per month Per quarter Per annum
1. Water charges 700 2100 84002. Postage 700 2100 84003. Transportation
In warts (per month 2 time)
900 2700 10800
Out warts (per month 8 time)
2500 7500 30000
4. Stationary 1200 3600 144005. Repairs 2800 8400 336006. Power 7600 22800 912007. Packing (15 per
bags)4500 13500 54000
8. Rent 17000 51000 204000
Total 454800
DeprecationSr. no.
Particulars Rate Value Amt
1. Machine 15% 245650 368002. Other fix assets 25% 51475 128503. Furniture 20% 10240 2050
Total 51700
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Cost sheetSr. no.
Particulars Amt
Sales 8400000+ Closing stock 840000
Cost of production 9240000- Opening stock 661710
Contribution 8578290
Direct wages to workers Unskilled \skilled 276000Raw materials 2400000
Direct expenses & utilities Water charges 8400Power 91200Prime cost 2775600
Repairs 33600Deprecation 51700Factory cost 85300
Salary of office staff Accountant 72000Preliminary 6000Stationary 14400Postage 8400IOC 746990Out warts 30000Rent 204000Packing 54000In warts 10800
A+B+C 40070800
NPBT (net profit) 4570800
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Cash accountParticulars Amt Particulars Amt
To balance 6488900 Raw materials 2400000To sales 8400000 By salary 348000
Other utilities 454800By income tax 1238000By drawing 1000000By balance 9448100
14888900
14888900
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Trading accountParticulars Amt Particulars Amt
Opening stock 661710 Sales 8400000Purchase 2400000 Closing stock 840000In warts 10800Wages 276000Power 91200
Gross profit 5800290
9240000 9240000
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Profit & loss accountParticulars Amt Particulars Amt
Rent 204000 Gross profit 5800290Salary 72000Packing 54000Repairs 33600Deprecation 51700Stationary 14400Water charges 8400Postages 8400Out warts 30000IOC 746990Income tax 1238000Preliminary 6000
Net profit 3332800
5800290 5800290
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Balance sheetParticulars Amt Particulars Amt
Capital 7469975 Machinery 245650
IOC 746990 -Deprecation 36800
208850
Drawing 1000000Net profit 3332800 Furniture
10240-deprecation 2050
8190
Other fix assets 51475-deprecation 12850
38625
Preliminary 12000-deprecation 6000
6000
Cash balance 9448100Closing stocked 840000
10549765 10549765
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5th year
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Purchase of raw materialsSr. no.
Particulars Rate (per kg )
Rate (per day )
Rate (per month )
Per annum
1. Raw materials 83(per kg )
8300(100 kg )
207500 2490000
Total 2490000
Salary & wagesSr. no.
Particulars Qty Rate Per month
Per annum
1. Factory staff Unskilled 3 8500 25500 306000 Skilled 1 7500 7500 90000
2. Accountant 1 6500 6500 78000
Total 474000
Other utilitiesSr. Particulars Per month Per quarter Per annum
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no.
1. Water charges 750 2250 90002. Postage 750 2250 90003. Transpiration
In wart (per month 2 time)
950 2850 11400
Out wart (per month 8 time)
3000 9000 36000
4. Stationary 1200 3600 144005. Repairs 3000 9000 360006. Power 8000 24000 960007. Packing (16 per
bags )4800 14400 57600
8. Rent 17500 52500 210000
Total 479400
DeprecationSr. no
Particulars Rate Value Amt
1. Machinery 15% 208850 313202. Other fix assets 25% 38625 96503. Furniture 20% 8190 1630
Total 42600
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Cost sheetSr. no. Particulars Amt.
Sales 1087500+ Closing stock 108750
Cost of production 9787500- Opening stock 840000
Contribution 8947500
Direct wages to worker Unskilled/skilled 396000Raw materials 2490000
Direct expenses & utilities Water charges 9000Power 96000Prime cost 2919000
Repairs 36000Deprecation 42600Factory cost 78600
Salary of office staff Accountant 78000Preliminary 6000Stationary 14400Postage 9000IOC 1054970Out warts 36000Rent 210000Packing 57600In warts 11400
A+B+C 4546970NPBT (profit) 4400530
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Cash accountParticulars Amt. Particulars Amt.
To balance 9448100 Raw materials 2490000To sales 1087500
0By salary 474000
Other utilities 479400By income tax 1854300
By balance 15025400
20323100
20323100
Trading accountParticulars Amt. Particulars Amt.
Opening stock 840000 Sales 10875000Purchase 2490000In warts 11400 Closing stock 1087500Wages 396000Power 96000
Gross profit 8129100
11962500
11962500
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Profit & loss accountParticulars Amt. Particulars Amt.
Rent 210000 Goss profit 8129100Salary 78000Packing 57600Repairs 36000Deprecations 42600Stationary 14400Water charges 9000Postage 9000Out warts 36000IOC 1054970Income tax 1845300Preliminary 6000
Net profit 4721230
8129100 8129100
Balance sheetParticulars Amt. Particulars Amt.
Capital 10549765 Machine 208850
IOC 1054970 -deprecation 31320
177530
Net profit 4721230 Other fix assets 38625-deprecation 9650
28975
Furniture 8190-deprecation 1630
6560
Preliminary 6000-deprecation 6000
-
Cash balance 15025400
Closing stock 1087500
16325965 16325965
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RATIO ANALYSIS
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Net profit ratio
Net profit ratio = net profit ratio / Total sales * 100
1st year
Net profit ratio = 1465165 / 3990000 * 100
= 36.72
2nd year
Net profit ratio = 1592165 / 4811400 * 100
= 33.09
3rd year
Net profit ratio = 2436260 / 6617100 *100
= 36.82
4th year
Net profit ratio = 3332800 / 8400000 *100
=39.68
5th year
Net profit ratio = 4721230 / 10875000 * 100
= 43.41
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Return on investment
ROI = Earnings before interest and tax / total investment * 100
1st year
ROI = 1504565 / 2712950 * 100
= 55.46
2nd year
ROI = 2051165 / 4576115 *100
= 44.74
3rd year
ROI = 3267410 / 7469975 * 100
= 43.74
4th year
ROI = 4570800 / 10549765 * 100
= 43.32
5th year
ROI = 4400535 / 16325965 * 100
= 40.28
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Gross profit ratio
Gross profit ratio = gross profit / sales * 100
1st year
= 2332300 / 3990000 * 100
= 58.45
2nd year
= 2719640 / 4811400 * 100
= 56.52
3rd year
= 4190070 / 6617100 * 100
= 63.32
4th year
= 5800290 / 840000 * 100
= 69.05
5th year
= 8129100 / 10875000 * 100
= 74.75
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Stock turn over
Stock turn over = COGS / Average stock
1st year
Stock turn over = 1657700 / 166250
= 9.9
2nd year
Stock turn over = 209760 / 406820
= 5.1
3rd year
Stock turn over = 2427030 / 571425
=4.2
4th year
Stock turn over = 2599710 / 750855
=3.5
5th year
Stock turn over = 2745900 / 963750
=2.8
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Fixed turnover ratio
Fixed turnover ratio = sales / fixed assets
1st year
Fixed turnover ratio = 3990000 / 447500
= 8.9:1
2nd year
Fixed turnover ratio = 4811400 / 370425
= 12.9:1
3rd year
Fixed turnover ratio = 6617100 / 307365
= 21.5:1
4th year
Fixed turnover ratio = 8400000 / 255665
= 32.8:1
5th year
Fixed turnover ratio = 10875000 / 213065
= 51:1
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Operating expenses
Operating expenses = operating expenses / sales * 100
1st year
Operating expenses = 2124365 / 3990000 * 100
= 53.24
2nd year
Operating expenses = 2371565 / 4811400 * 100
= 49.29
3rd year
Operating expenses = 3669410 / 6617100 * 100
= 55.45
4th year
Operating expenses = 5001600 / 8400000 * 100
= 59.54
5th year
Operating expenses = 7031530 / 10875000 * 100
= 64.66
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DISCLOSURE OF ACCOUNTING POLICIES
The depreciation is being calculated according to Reducing
Balance Method. In this method, the depreciation changes
according to the value of the asset remaining in the last year.
The asset is totally written off slowly and gradually.
The accounting policies used in this report is Double Entry
System and all the effect of Income and Expenditure is given
according to Double Entry System.
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RISK FACTOR
In each and every business activity there is some risk in the some
way our unit is also having some risk factory, which are as follows:
As our product is under the list of food items so if license not
provided by government authority within a specific time it is
difficult to start the production.
At present there is minimum competition in the market but in
the future then may be cut-throat competition and it may be
difficult to continue the business at the time of competition.
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FUTURE PLANS
Every unit has its own dream and plan Continuous planning in
specific direction for expanding activities is quit essential thinking of
future plans and as each and every individual, even every company
ambitious.
RADHE PLASTIC has an ambition to achieve bright future.
Following are the future plans of the RADHE PLASTIC.
1. To make the firm a medium scale industry and then a
large scale.
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CONCLUSION
In the product project report on RADHE PLASTIC I
have discussed all financial data and other relevant
information.
The market RADHE PLASTIC of is expanding; demand
for the services is increasing day by day. The return on this
business is also satisfactory.
At last it can be said that future of this product is very
bright.
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WEBLIOIGRAPHY
www.wikipedia.com
www.google.co.in
www.law.incometaxindia.gov.in
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