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    DECLARATION

    I, MANVANI HITESH V., a student ofT.Y. B.B.A. ofShri DD

    NAGDA B.B.A. College hereby declare that this project report has

    been carried out successfully under the guidance of Prof.

    Pragnesh Patel and staff members.

    The product project report is based on the industry

    manufacturing TIN HANDLE, situated at JAMNAGAR. I am further

    declaring that this project report is not previously submitted to any

    college.

    Date: Manvani Hitesh

    Place: Jamnagar

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    ACKNOWLEDGEMENT

    It is really a matter of great pleasure for me to present this

    creative and practical work. At this stage, project report is an

    important part of learning & every entrepreneur prepares it before

    starting of actual production.

    I have taken this opportunity to express my sincere thanks to

    all those who helped me in the preparation of this report.

    First of all I would like to thank my parents who have

    encouraged me for preparing such a perfect product project report,

    then Prof. Pragnesh M. Patel for his guidance.

    I am very glad to submit the report before the Saurashtra

    University. I have tried my level best to present the available

    information in the best possible manner.

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    PREFECE

    In todays world, the managerial ability is so demanded in the

    company. For doing the better managerial work, the person must

    have the knowledge of management. This knowledge is not only

    based on theoretical but also on practical. In short for being a good

    manager a person must have both the knowledge.

    I am extremely happy to submit this product project report on

    small-scale industries as per the syllabus of T.Y.B.B.A of

    Saurashtra University for particularly introducing the subject

    Entrepreneurship & Management of Small Scale Business.

    The main objective of this project report is to make students

    learn about various factors that should be taken into consideration

    before setting up an industry. In other words, it is purely,

    Entrepreneurship development & training for the establishment of

    small-scale industry.

    The contribution of SSI is more than 48% in the growth rate

    of the country. So, it is essential to understand management &

    working of SSIs as a student of management.

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    CONTENTS

    SR.NO.

    PARTICULARS PG.NO.

    A. PROJECT AT A GLANCE

    Name of Unit

    Communicational Address

    Product

    Form of Organization

    SSI Registration No.

    Location of the Unit

    Partners Name

    Total Investment

    Production Capacity

    B. GENERAL INFORMATION 7.

    Introduction 8.

    Partners Details 9.

    Size and Form of Organization 10.

    Location Justification 11.

    C. PRODUCTION DETAILS 13.

    Product Details 14.

    Raw Materials

    Production Process 15.

    Machines and Equipments 17.

    Quality Measurement 18.

    Production Capacity 19.

    D. FINANCIAL DETAILS 20.

    Application of Sources 21.

    Fixed Capital 21.

    Working Capital (Per Month) 23.

    Sources of Finance 28.

    Interest on capital 29.

    Statement of Sales & Cost of Production 30.

    Profitability Analysis 31. Break even Analysis 32.

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    Ratio Analysis 33.

    E. MARKETING DETAILS 34.

    Market Potentialities 35.

    Market Segmentation 36.

    Competitors Details 37.

    Pricing Policy 38.

    Transportation 39.

    F. CONCLUSION 40.

    G. APPENDIX 41.

    H. BIBLIOGRAPHY 42.

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    PROJECT AT A GLANCE

    TABLE 1: PROJECT AT A GLANCE

    6

    NAME OF THE UNIT PROGRESS INDUSTRIES

    PRODUCT TIN HANDLE

    COMMUNICATIONAL

    ADDRESS

    Plot No. 44, GIDC, PHASE II,

    JAMNAGAR-361004

    FORM OF ORGANIZATION PARTNERSHIP FIRM

    SSI REGISTRATION NUMBER APPLICATION IS MADE

    LOCATION OF UNIT Plot No. 44, GIDC, PHASE II,

    JAMNAGAR-361004

    PROPRIETORS NAME MANVANI HITESH V.

    GORECHA NAKUL H.

    TOTAL INVESTMENT Rs. 41,97,000

    TOTAL PRODUCTION

    CAPACITY45,00,000 Units

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    INTRODUCTION

    The industrial structure of India can be classified into three

    main groups; they are large scale, medium scale & small-scale

    sectors. The small-scale industry plays an important role in Indian

    economy. The small-scale industries can be further sub divided

    into village or cottage industry & modern small-scale industry.

    Today, SSIs are ensuring more equitable distribution of the

    national income & they facilitate an effective mobilization of

    resources. Small firms are found co-existing with the large firms in

    the business world. The main reason behind this is the low cost

    strategy adopted by SSI with mixture of both the production

    techniques, i.e., Capital Intensive Techniques as well as Labour

    Intensive Techniques.

    This project report is related to small scale industry namely,

    Progress Industries located in Jamnagar, producing Tin Handle.

    Industries of Jamnagar are very popular all over the world so that I

    have seen so many opportunities of starting a SSI unit in the same

    industry. Jamnagar is at the leading place in the manufacturing of

    different metal products all over the world. Here is the detail of the

    whole project related to the production, finance, etc.

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    PROPRIETORS DETAILS

    TABLE 2: PROPRIETORS DETAILS

    9

    NAME MANVANI HITESH V.

    COMMUNICATIONAL

    ADDRESS

    RANJITNAGAR, OLD HUDCO,

    JAMNAGAR 361 005

    EDUCATIONAL

    QUALIFICATIONS

    B. B. A.

    RESPONSIBILITY FINANCE & MARKETING

    DEPARTMENTEXPERIENCE 1 YEARS

    FINANCIAL CONTRIBUTION 30% OF TOTAL CAPITAL

    CONTRIBUTION IN CAPITAL Rs. 12,59,100

    NAME GORECHA NAKUL H.

    COMMUNICATIONAL

    ADDRESS

    RANJITNAGAR, OLD HUDCO,

    JAMNAGAR 361 005

    EDUCATIONALQUALIFICATIONS

    B. Sc.

    RESPONSIBILITY PRODUCTION & PURCHASE

    DEPARTMENT

    EXPERIENCE 2 YEARS

    FINANCIAL CONTRIBUTION 20% OF TOTAL CAPITAL

    CONTRIBUTION IN CAPITAL Rs. 12,59,100

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    SIZE OF UNIT ANDFORM OF ORGANIZATION

    SIZE OF THE UNIT

    The industry is basically classified in three scales.

    1. Large Scale Industries,

    2. Medium Scale Industries,

    3. Small Scale Industries.

    Generally, Small Scale Industries can be defines as the unit

    having capital investment in fixed assets less than one Crore.

    PROGRESS INDUSTRIES comes under the head of Small

    Scale Industries, as the capital investment in the fixed assets is

    less than one Crore.

    FORMS OF ORGANIZATION

    1. Proprietorship or sale trading,

    2. Partnership,

    3. Joint stock company:

    a). Public Limited company,

    b). Private Limited company,

    c). Govt. Company,

    4. Co-operative Society.

    PROGRESS INDUSTRIES is in the form of a partnership

    firm which is managed by its two partners.

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    LOCATION OF THE UNIT

    One of the early decisions that an entrepreneur has to make

    is the choice of location of the business. The process of locating

    any firm in a particular industry is called industrial location. The

    entrepreneur has to locate the firm at such a place where the cost

    of production and distribution is lower. The aim of any business is

    the maximisation of profit and minimisation of cost of production.

    Thus an entrepreneur must think carefully while deciding the

    location of any industry.

    Location means selection of place for establishment of

    industry where the cost of production is the lowest at the time

    of establishment.

    PROGRESS INDUSTRIES will be located at GIDC Phase II

    in Jamnagar. There are several factors, which are taken into

    consideration while selecting location of an industry.

    RAW MATERIAL

    The major component or major input, which is inevitable part

    of any production process, is availability of raw material.

    Availability of raw material at proper time, at reasonable rate, in

    right quality, in quantity, etc directly affects the price of the finalproduct.

    Here at PROGRESS INDUSTRIES, the raw material

    required like Tin wire, Zinc and other chemicals are easily

    available from local market and from Viramgam. So there is no any

    problem related to the raw material.

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    LABOUR

    Manpower input, i.e., labour could be put at second number

    after raw material. Cheaper and efficient labour availability enrich

    the firm and thus, it is very crucial in nature.

    PROGRESS INDUSTRIES will be located at the G.I.D.C.,

    Jamnagar where the skilled and semi-skilled labour is easily

    available at reasonable rates. Moreover, site is connected with

    Jamnagar which is a big commercial city.

    MARKET

    The main concentration of every product is to get potential

    market, and proximity to the market is one of the most

    considerable variables.

    Jamnagar is the main hub for the metal products like brass,

    tin, copper, etc. The economies of concentration will be available

    to the PROGRESS INUDSTRIES. Thus, the market is easily

    available to its products.

    INFRASTRUCTURE

    The infrastructure is the prime need for any industry.

    Particularly, manufacturing industries must be located where

    different infrastructure facilities are easily available like

    transportation, power, water, etc. for the smooth and uninterrupted

    production.

    Jamnagar GIDC is the special zone for industries, thus the

    basic infrastructure facilities like water, electricity, transportation

    are easily available. Jamnagar is in touch with the national

    highway and the railway station is not more than 10 kms.

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    TECHNOLOGICAL ASPECTS

    In the modern world, any production unit cannot have only

    labour intensive production technique but it has to go for

    intermediary technique of production which consists features of the

    both labour and capital intensive production technique.

    The required machines for the production of Tin Handle are

    available from Rajkot. The dies for the product are prepared by the

    special die-making units and there are much these types of units in

    Jamnagar.

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    PRODUCT DETAILS

    In today modern era, the standard of living of people is

    increased. People become choose in their consumption pattern.

    They want long tern benefits from the product and for this purpose.

    They are ready to pay as much as possible. To day in cities and

    villages residential construction and also industrial construction are

    increasing very speedily.

    Tin Handle is a handle of oil tin and it can easily fixed on oil

    tin. It is available in different types of shape and also in different

    gauge. PROGRESS INDUSTRIES will provide Tin Handle to the

    Oil Tin producers who require it in different types, gauge and

    shapes.

    The Tin Handle will be available in packing of50 kgs to the

    customers.

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    RAW MATERIALS

    The following raw materials are used for the manufacturing

    of the Tin Handle.

    Tin Wire

    Zinc Plate

    A. M. Chemical (Tins)

    R. Chemical (Tins)

    S. Chemical (Tins)

    Hydrochloric Acid

    Zinc Salt

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    PRODUCTION PROCESS

    Right now we are planning to produce Tin Handle

    mentioned earlier. There are mainly five stages in the production

    process as follows:

    1). STRAIGHTENING WIRE ROLL

    The wire available will not be straight. So, it will be straighten

    with the help of Tin Handle Machine. In this machine, there are five

    bearings. The wire is passed through these five bearings and after

    that the wire becomes straight.

    2). CUTTING AND SHAPING THE WIRE

    After straightening the wire, it is cut in appropriate shape with

    the help of Tin Handle Machine. The wire can be bent in any

    shape through this machine. This machine produces one Tin

    Handle in one second. Then, it is given the shape of Tin Handle

    with the help of die.

    3). CHEMICAL PROCESSING

    At this stage, the Tin Handle is passed through different

    chemicals. The following are the types of chemicals and its

    process timings with Tin Handle:

    Firstly, Tin Handle is dropped in the chemical named

    Hydrochloric Acid for 10 minutes. After that, it is

    washed 5 to 7 times with clean water.

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    After that, the Tin Handle is put in a Zinc Tank

    Machine. This machine consists different types of

    chemicals like A zinthobrit chemicals, B zinthobrite

    chemicals, S zinthobrite chemicals. In which the Zinc

    Plate is also used.

    Tin handle as weight as 50 kgs is put into Zinc Drum

    and it is rounded with the help of electric motor.

    4). ZINC COATING

    After 15 minutes from coming out of Zinc Tank, the Tin

    Handle is coated with Zinc. It is called Zinc Coating.

    5). DRYING

    After coating Tin Handle with Zinc, it is put down in drum for

    drying purpose.

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    MACHINES AND EQUIPMENTS

    All the manufacturing units use different types of machines

    and equipments for conversion of raw materials into finished

    production. At PROGRESS INDUSTRIES, the following machines

    and equipments are used for manufacturing Tin Handle.

    TABLE 3: OPERATION PERFORMED BY MACHINES

    AND EQUIPMENTS

    19

    SR.

    NO.

    MACHINE /

    EQUIPMENT

    OPERATION

    PERFORMED

    1 Tin Handle Machine Straightening wire, Cutting wire,

    Bending wire, Punching wire.

    2 Zinc Tank Coating Tin Handle with zinc.

    3 Refrigerator Controlling power of Zinc Tank.

    4 Drum Drying Tin Handle.

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    QUALITY MEASUREMENT

    Quality is one of the important factor affect to the functioning

    of the firm. It must be taken into consideration before starting

    production of any product. Today customers believe in superior

    quality products rather than inferior quality products.

    As far as ourTin Handle is concerned we have to be very

    keen for the quality of our products to reduce the chances of

    defectives. For this purpose we will use several quality measures

    to avoid such accidents. They are,

    1. We will arrange for all gauges those are necessary for the

    production of Tin Handle.

    2. We will also arrange several size measurement equipments to

    measure the perfect size of the product.

    3. At the last the finished products will be tested manually to

    avoid any complains from the customers regarding the quality

    of the products.

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    PRODUCTION CAPACITY

    INSTALLED CAPACITY

    TABLE 4: INSTALLED CAPACITY

    (In units)

    UTILISATION OF CAPACITY

    TABLE 5: UTILISATION OF CAPACITY AT 60%

    (In units)

    21

    PRODUCT

    NAME

    DAILY

    PRODUCTION

    MONTHLY

    25 DAYS

    YEARLY

    300 DAYS

    Tin Handle 15,000 3,75,000 45,00,000

    PRODUCT

    NAME

    DAILY

    PRODUCTION

    MONTHLY

    25 DAYS

    YEARLY

    300 DAYS

    Tin Handle 9,000 2,25,000 27,00,000

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    APPLICATION OF SOURCES

    FIXED CAPITAL

    LAND

    TABLE 6: COST OF LAND

    BUILDING

    TABLE 7: COST OF BUILDING CONSTRUCTION

    23

    SR.

    NO.

    PARTICULARS SQUARE

    FEET

    RATE /

    SQUARE

    FEET

    TOTAL (RS.)

    1 Land 3,000 650 19,50,000

    2 Stamp Duty - - 2,16,600

    3 Registration Fees - - 12,400

    TOTAL 21,79,000

    SR.

    NO.

    PARTICULARS SQUARE

    FEET

    RATE /

    SQUARE

    FEET

    TOTAL

    (RS.)

    1 Manufacturing Shed 3,500 798 27,93,000

    2 Raw Material Godown 500 798 3,99,000

    3 Packing Room 300 798 2,39,4004 Finished Goods

    Godown

    400 798 3,19,200

    5 Office 300 798 2,39,400

    TOTAL 5,000 39,90,000

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    PLANT AND MACHINERY

    TABLE 8: COST OF PLANT AND MACHINERY

    FURNITURE AND OFFICE EQUIPMENTS

    TABLE 9: COST OF FURNITURE AND OTHER

    EQUIPMENTS

    TABLE 10: TOTAL FIXED CAPITAL

    WORKING CAPITAL (PER MONTH)24

    SR.NO.

    PARTICULARS QTY. RATE TOTAL(RS.)

    1 Tin Handle Machine 4 1,50,000 6,00,000

    2 Zinc Tank Machine 2 75,000 1,50,000

    3 Drum Machine 1 35,000 35,000

    4 Refrigerator 2 30,000 60,000

    TOTAL 8,45,000

    SR.

    NO.

    PARTICULARS QTY. RATE TOTAL

    (RS.)

    1 Furniture - - 1,30,000

    2 Delivery Van 1 1,20,000 1,20,000

    3 Fax Machine 1 5,000 5,000

    4 Computer 2 25,000 50,000

    TOTAL 3,05,000

    SR. NO. PARTICULARS TOTAL (RS.)1 Land 21,79,000

    2 Building 39,90,000

    3 Plant and Machinery 8,45,000

    4 Furniture and Other Equipments 3,05,000

    5 Preliminary Expenses 60,000

    TOTAL FIXED CAPITAL 73,79,000

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    RAW MATERIALS

    TABLE 11: RAW MATERIALS REQUIREMENTS

    PERSONNEL SALARY AND WAGES

    TABLE 12: SALARY AND WAGES OF STAFF

    25

    SR.

    NO.

    PARTICULARS QTY. RATE TOTAL

    (RS.)

    1 Tin Wire 15,600 13 2,02,800

    2 Zinc Plate 390 3 1,170

    3 A. M. Chemical (Tins) 13 75 975

    4 R. Chemical (Tins) 13 45 585

    5 S. Chemical (Tins) 26 65 1,690

    6 Hydrochloric Acid 250 3 7507 Zinc Salt 25 36 900

    TOTAL 2,08,870

    SR.

    NO.

    PARTICULARS NO. PER

    MONTH

    TOTAL

    PER

    MONTH

    TOTAL

    PER

    YEAR

    1 Production Manager 2 5,000 10,000 1,20,000

    2 Supervisors 3

    3

    4

    5

    6

    7

    TOTAL

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    WORKING CAPITAL REQUIREMENTS

    (PER MONTH)

    RAW MATERIALS

    TABLE 12: RAW MATERIAL REQUIREMENT

    SR.

    NO.

    PARTICULARS QTY.

    (IN

    K.G.)

    AMT. (RS.

    PER K.G.)

    TOTAL

    1. Brass 4,000 225 9,00,000

    TOTAL 9,00,000

    PERSONNEL SALARY & WAGES

    TABLE 13: COMPUTATION OF SALARY & WAGES

    SR.

    NO.

    PARTICUALRS NO. AMT. TOTAL

    1. Supervisor 2 1,200 2,400

    2. Administrative Staff &

    Accountant

    5 1,500 7,500

    3. Unskilled Workers 15 800 12,000

    4. Skilled Workers 7 1,000 7,000

    TOTAL 28,900

    UTILITIES

    TABLE 14: UTILITIES

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    SR.

    NO.

    PARTICULARS TOTAL (Rs.)

    1. Electricity (Rs. 10/unit, i.e. 500*10) 5,000

    2. Oil 1,000

    3. Round Tools 1,000

    TOTAL 7,000

    Calculation of Electricity: -

    Total connected load = 14 HP

    Per day consumption = 13% of the connected load * Shift hours

    = 13% of 14 HP * 11 hours

    = 1.82 * 11 hours

    = 20 units

    Per Month Consumption = 20 * 25 days

    = 500 units

    Per Year Consumption = 20 * 300 days

    = 6000 units

    DEPRECIATION

    TABLE -15: DEPRECIATION

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    SR.

    N

    O

    .

    PARTICULARS RATE

    O

    F

    DEP.

    AMT. AMT.

    OF

    DEP.

    1. Land & Building 10 % 34,25,000 3,42,500

    2. Plant & Machinery 25 % 5,68,000 1,42,000

    3. Furniture & other office

    Equipments

    12 % 3,25,000 39,000

    TOTAL 5,23,500

    REPAIRS & MAINTENANCE

    TABLE 16: REPAIRS & MAINTENANCE

    SR.

    NO.

    PARTICULARS AMT.

    1. Repairs 4,000

    2. Maintenance 4,000TOTAL 8,000

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    RENT & INSURANCE

    TABLE 17: RENT & INSAURANCE

    SR.

    NO.

    PARTICULARS AMT.

    1. Rent Nil

    2. Insurance Premium 10,000

    TOTAL 10,000

    ADMINISTRATIVE EXPENSES

    TABLE 18: ADMINISTRATIVE EXPENSES

    SR.

    NO.

    PARTICULARS AMT.

    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 19: SELLING & DISTRIBUTION EXPENSES

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    SR.

    NO.

    PARTICULARS AMT.

    1. Transportation Charges 7,500

    2. Advertising & Sales Promotion 1,000

    3. Other Expenses 1,500

    TOTAL 10,000

    TOTAL WORKING CAPITAL REQUIREMENT

    TABLE -20: WORKING CAPITAL REQUIREMENT

    SR.

    NO.

    PARTICULARS AMT.

    (MONTHLY)

    AMT.

    (YEARLY)

    1. Raw Materials 9,00,000 1,08,00,000

    2. Personnel Salary 28,900 3,46,800

    3. Utilities 7,000 84,000

    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. 10,000 1,20,000

    TOTAL 9,73,900 1,16,86,800

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    TOTAL CAPITAL INVESTMENT

    TABLE 21: TOTAL CAPITAL INVESTMENT

    SR.

    NO.

    PARTICULARS AMT.

    1. Total Fixed Assets 43,18,000

    2. Total Working Capital Requirements 1,16,86,800

    TOTAL 1,60,04,800

    SOURCES OF FINANCE

    TABLE -22: PROVISION OF FINANCE

    SR.

    NO.

    DETAILS BANK

    LOAN

    FRIENDS &

    RELATIVES

    OWN

    CONTRI.

    TOTAL

    1. LAND 10,00,000 - 15,00,000 25,00,000

    2. BUILDING - 4,00,000 5,25,000 9,25,000

    3. MACHINERY 1,00,000 68,000 4,00,000 5,68,000

    4. FURNITURE - 3,25,000 - 3,25,000

    5. WORKING

    CAPITAL

    21,00,960 48,08,680 47,77,160 1,16,86,800

    TOTAL 32,00,960 56,01,680 72,02,16

    0

    1,60,04,800

    S

    31

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    OURCES OF FINANCE

    TABLE 23: SOURCES OF FINANCE

    SR.

    NO.

    PARTICULARS AMT.

    1. Owned Capital 45% 72,02,160

    2. Borrowed Capital: -

    Bank Loan 20 % 32,00,960

    Friends & Relatives 35 % 56,01,680

    TOTAL 1,60,04,800

    INTEREST ON CAPITAL

    TABLE 24: INTEREST ON CAPITAL

    SR.NO.

    PARTICULARS RATE OFINTEREST

    AMT.INVESTED

    AMT. OFINTEREST

    1. Owned Capital 8 % 72,02,160 5,76,173

    2. Bank Loan 11 % 32,00,960 3,52,106

    3. Friends &

    Relatives

    9.5 % 56,01,680 5,32,160

    TOTAL 1,60,04,800 14,60,439

    STATEMENT OF SALES & COST OF PRODUCTION

    TABLE 25: SALES

    PRODUCT NAME QTY. RS. PER TOTAL

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    (IN GROSS) GROSS

    Moulding Nut 6,30,000 23.00 1,44,90,000

    Annual Receipt 1,44,90,000

    TOTAL COST OF PRODUCTION

    TABLE 26: COST OF PRODUCTION

    SR. NO. PARTICULARS AMT.

    (A) VARIABLE COSTS: -

    1. Raw Material 1,08,00,000

    2. Personnel Salary & wages (80 %) 2,77,4403. Utilities 84,000

    4. Administrative Expenses 1,20,000

    5. Sales & Distribution Expenses 1,20,000

    TOTAL VARIABLE COSTS 1,14,01,440

    (B) FIXED COSTS: -

    1. Personnel Salary & Wages (20 %) 69,360

    2. Insurance Premium 1,20,000

    3. Repairs & Maintenance 1,20,000

    4. Interest on Capital Invested 14,60,4395. Depreciation 5,23,500

    TOTAL FIXED COSTS 22,93,299

    TOTAL COST OF PRODUCTION 1,36,94,739

    PROFIT ANALYSIS

    TABLE -27 PROFIT ANALYSIS

    PARTICULARS AMT. TOTAL

    Annual Receipt 1,44,90,000

    Less Total Cost 1,36,94,739

    PROFIT BEFORE TAX 7,95,261

    Less Income Tax

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    Up to 100000 Nil

    100000 to 150000@10 % 5,000

    150000 to 250000@20 % 20,000

    Above 250000@30 % 1,63,578 1,88,578

    PROFIT AFTER TAX 6,06,683

    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. = 22, 93,299 x 1, 44, 90,000

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    1, 44, 90,000 - 1, 14, 01,400

    BEP = Rs. 1, 07, 58,888

    Thus, the BEP is Rs. 1, 07, 58,888. 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.

    RATIO ANALYSIS

    NET PROFIT RATIO = NET PROFIT X 100

    NET SALES

    = 6, 06,683 X 100

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    1, 44, 90,000

    = 4.20 %

    RETURN ON INVESTMENT = NET PROFIT X 100

    INVESTMENT

    = 606683 X 100

    1, 60, 04,800

    = 3.80 %

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    MARKET POTENTIALITIES

    In the last one and a half decade, India has seen a rapid

    growth in all the industries. Now a day, Indias economic growth is

    second fastest in the world just after China. Every industry is

    growing and different types of products are coming into existence.

    Peoples income, demand, standard of living etc. are increased.

    Therefore, there is no question of decrease in the demand ofTin

    Handle.

    Every business unit believes that the business segment in

    which it operate, offers opportunity for growth. That is why our

    industry in known as PROGRESS INDUSTRIES.

    Market potential of our company are all those people who

    use electrical home appliances, For example, Iron, TV set, Audio

    System, etc. and as we all know that with the increase in the

    consumption of such products, there will be increase in the

    demand of the Electrical Accessories also which will give rise to

    the Tin Handle also which are produced by us.

    Thus, all these shows that in nearest future there will be still

    more demand for the Tin Handle in the factories those

    manufacturing furniture, metal items and many industries.

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    CONCLUSION

    Thus, hereby, I myself and my partner Mr. Hemendra patel

    are concluding our product project report related to the

    manufacturing of Brass Electrical Parts. The Brass Products

    selected by us for the manufacturing, is too demanded for the

    further production of electrical accessories as there is increase in

    the consumption of electrical appliances, such as television, video,

    etc.

    We hope that the target we have set in the above

    estimations will be able to achieve very soon and will try to expand

    our business upto the highest level. We will also try to convert our

    partnership firm into Pvt. Ltd firm to achieve more successive

    levels.

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    APPENDIX

    LIST OF TABLES

    40

    TableNo.

    TOPICS Pg. No.

    1. Project at a glance 06.

    2. Proprietors details 09.

    3. Machines used in Production 17.

    4. Installed Capacity 19.

    5. Utilized Capacity 19.

    6. Total Land 21.

    7. Total Building Premises 21.

    8. Cost of Land & Building 21.9. Plant and Machinery 22.

    10. Furniture and Office Equipments 22.

    11. Total Fixed Capital 22.

    12. Raw Materials 23.

    13. Personnel Salary and Wages 23.

    14. Utilities 24.

    15. Depreciation 25.

    16. Repairs and Maintenances 25.

    17. Rent and Insurance 25.18. Administration Expenses 26.

    19. Selling and Distribution Expenses 26.

    20. Total Working Capital 27.

    21. Total Capital Investment 27.

    22. Provision of Finance 28.

    23. Sources of Finance 28.

    24. Interest of Capital 29.

    25. Statement of Sales 30.

    26. Statement of Total Cost of

    Production

    30.

    27. Profit Analysis 31.

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    BIBLIOGRAPHY

    Desai Vasant, 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 Jamnagar Brass Parts Association, etc