pressure cooker

PPR ON PRESSURE COOKER

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MVM COLLEGE RAJKOT

A

PRODUCT PROJECT REPORT ON

ROYAL PRESSURE COOKER

Prepared By : BHENSDADIA BHAVIKA D..

Roll No. : 07

Seat No. :

Class : BBA SEM-5

Academic year:

2014-2015

College:

Matushri virbaima Mahila College of Commerce, Management & It

Guided by:

Prof. Dharti Nathwani

Prof. Kalpesh Radiya

Submitted To:

Saurashtra University


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1. INTRODUCTION TO SMALL SCALE INDUSTRY

The small scale in India covers a wide spectrum of Industries categorized under

small, tiny and cottage segment ranging from small artisans handicraft units to

modern production units with significant investment. This sector has acquired a

prominent place in the country as it not only acts as a nursery for the development

of entrepreneurial talent but also produce a wide range of products.

In the Indian context, the small scale industry has been receiving due attention and

importance from the policy makers owing to its special characteristics, namely.

Low level of investment required.

High potential for creation employment opportunity.

Least location constraints.

There by contribution to a balanced regional development and high of local

resources.

ROYAL PRESSURE COOKER INDUSTRY will small scale industry. Investment

of royal pressure cooker industry is 1,00,00,000.ROYAL PRESSURE COOKER

INDUSTRY will produce pressure cooker. Pressure cooker will have feature like

Stylish, Hard Anodized, Time & Energy Efficient, Can be used on Gas Stove as

well as Induction Cook top.


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2. INTRODUCTION TO PRODUCT PROJECT REPORT

(1)


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(2)


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3. PROJECT AT A GLANCE

Name of the Unit “Royal partner’s firm”

Tag line “Always tasty & fresh food”

Promoter’s Name BHENSDADIA BHAVIKA D..

Communication address ROYAL pressure cooker industry

Survey no. 196,

Plot no.1&2,

Vill.: Veraval (shaper)

Dist. : Rajkot – 360024

Registration office Address ROYAL pressure cooker industry

Survey no. 196,

Plot no.1&2,


Dist. : Rajkot – 360024.

Telephone No. 0281-314311

Fax No. 75-14311

Form of Organization Partnership Firm

Size of the unit Small Scale Unit

Brand Name “ROYAL”

Usage of the product Making food

SSI Registration No. Applied For


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Number of employee 30

Investment 1,00,00,000

Day off Wednesday

Sources of finances 60 % Ownership

40 % Borrowed

Investment in working capital 41,79,000

Investment in fixed capital 58,21,000

Relation with Bank State bank of India

LOGO of Company


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4. PROMOTER’S BACKGROUND

Name

Bhensdadia Bhavika d.

Age

26

Address

Astha Residency,

3G+ Apartment,

Sukanvila 201,

Rajkot-360004

Education/Qualification

MBA

Experience

2year

Nature of Responsibility

Managing marketing & finance

Contribution in the unit

60%


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5. JUSTIFICATION OF LOCATION

ROYAL PRESSURE COOKER strategically located at

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

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

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

entrepreneur must choose an ideal location to have better performance .

Following are the factors to select shaper as the plant location

1.Availability of Raw-materials :-

Raw-material plays vital role to achieve quality improvement

and cost reduction in production . Shaper is the best to get raw-material

easily because it is attached with national highway.

2.Availability of power and water:-

In modern era industry could not work without power. Adequate

electricity and regular flow of electricity allows greater freedom of choice

for location . Shaper(veraval) has continuous flow of electricity so, shaper (

veraval ) is best possible location as out of the city area .The rate of

electricity is lower in shaper (veraval) because it’s known as industrial zone.Water

supply is also necessary for continuous production process.

3.Nearness to markets :-

Quickness in marketing action can be ensured by the being close to the

market, late deliveries can be avoided when plant is located near the market

. Industry have ready market for selling of product.

4.Availability of labor :-


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Worker or labor are the most imported person in the industry. If

labor gets easily then we can control or reduce the cost of production .Labors get at

very cheaper rate because of industrial zone.

LOCATION OF UNIT :

ROYAL pressure cooker

Survey no. 196,

Plot no.1&2,


Dist. : Rajkot – 360024.

RAJKOT

N/

H

8

-B

ROYAL

PRESSURE

COOKER

SHAPER (VERAVAL)


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6. ORGANISATION STRUCTURE

PROMOTOR

PRODUCTION

MANAGER

H R

MANAGER

MARKETIN

G MANAGER

FINANCE

MANAGER

SUPERVISIOR EMPLOYEES SALES MAN ACCOUNTANT

WORKER CLERK


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7. VISION& MISSION OF THE COMPANY

VISION:-

Vision of the ROYAL PRESSURE COOKER INDUSTRY will

maximum customer satisfaction by providing qualitative and good product to

customer. Job satisfaction of employee will also short goal of the industry.

MISION:-

Mission of ROYAL PRESSURE COOKER INDUSTRY will

expand market as well as market share of industry. industry want to convert small

scale industry in medium scale industry with the customer satisfaction. industry

want to build strong image in the market.


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8. BASIS AND PRESUMPTION

The proposed production of 36,000 per annum of gas lighter more than 300

working days in a year.

Shift Single shift

Working hours 8:30Am to 8:00Pm

Break 12:30Pm to 2:00Pm

The unit requires 2 to 3 year to achieve full capacity utilization the first year,

company utilized 75% capacity.

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

Land value and construction cost has been taken on an average basis science it

varies from place to place.

The cost of machinery & equipment has been proposed after consulting the

machinery supplier nearly all the machines are available locally.


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9. IMPLEMENTATION SCHEDULE

The major activities in the implementation of the project have been

listed and the average time for implementation is estimated at 8-9 months.

No. Particulars Time Period

1. Preparation of Project Report 1 Month

2. Acquisition of Land 1 Month

3. SSI Registration 1 Week

4. Approval of loan 20 Days

5. Construction of Building 1 Months

6. Acquisition of Machinery 1 Month

7. Installation of Machinery 15 Days

8. Arrangement of Power 1 Month

9. Appointment of Staff &Labour 15 Days


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1. PLANT LAYOUT

According to M.C.Muste :-

“ A good layout is one which always materials regularly and directly for

processing ,this reduces transport ,handling, detail and other costs down per unit,

space requirements are minimize and reduced idea machine and idle man fine.”

A technique of locating different machines and plant requires within

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

total cost be available. Proper plant layout is one of keys of success in factory

management. It signifies arrangement of machines work area transport shorting of

materials and processing to different parts.

ROYAL PRESSURE COOKER INDUSTRY will have S type plant layout which

is reduce the unnecessary motion of employees. Industry arrange their store room

near to production plan so Industry eliminate damage of raw-materials or finished

product. Industry also arranged his machinery in that way which reduce movement

of raw-material.


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2. RAW MATERIAL

The raw materials are the most important component of the production

process. When the raw materials are collected then and only then production is

possible. If the raw materials are available in the cheapest way it is the most

important advantage for the firm. The raw materials can be compared to water, air

and food for human beings which are very important so as the raw materials for the

firm.

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

without which the person cannot perform his activities. Raw materials are very

important requirements of every industry & mainly for manufacturing unit. The

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

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

ROYAL PRESSURE COOKER INDUSTRY also consider the raw

materials as the key factor in production unit. The main raw material used in

Pressure cooker is: aluminum circle,wishel, gas kit, Bakelitehandle, balkPatti.

ROYAL PRESSURE COOKER INDUSTRY purchasing the raw material from

Jamnagar, veraval, vyara.


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3. MACHINERY AND EQUIPMENT

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

Sr. No.

Name of Machinery

Name of Suppliers

Units Rs. Per Unit Amount

1. Cutting

Machine

“shiv”enterprise

Rajkot

1.

4,00,000

4,00,000

2. Stuffing

Machine

“classic machinery”

Ahmadabad

2.

2,00,000

4,00,000

3. Sewing

Machine “Suner machinery”

Rajkot

3.

1,73,000

1,73,000


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4.SUPPLIERS OF RAW MATERIAL & MACHINARY

Raw material will be the basic need of all types of organization of all medium and

large scale industry. Without raw materials production process will impossible.

Raw material is life blood of production department.

A) RAW MATERIAL

1)Aluminum Circle: BIC company

2)Wishel : DR. BACK company

3)Gas Kit : Dell korn company

4)Bakelite Handle : local market

5)Balk Patti : graver company

B) MACHINARY

1)Cutting Machine : Shiv Wiring industry

Ahmadabad

2)Stuffing Machine : Parth limited

Ahmadabad

3)Sewing Machine : Tinytech pvt. ltd.

Surat


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5. FLOW CHART OF PRODUCTION PROCESS

RAW MATERIAL

CASTING

CUTTING

MAKE HOLES

BUFFING

ASSEMBLING

PACKING


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6. PRODUCTION PROCESS

The assembling process & manufacturing process of handle is not as critical as

other. It requires some amount of technical knowledge because the quality

production.

Manufacturing process involves following few operation;

Aluminum circle or required size will press in deep drawing press with the help of

suitable die

Edge of the cooker is out on spinning machine.

Cooker will than cleaned buffed on buffing machine on outer surface and sand

blasting will done in the inner surface with help of spray pump.

Primer coating will do into the outer surface and dried.

Teflon and few pigment will mixed in require proportions will made and coating

will done in the outer surface.

Cook ware thus produced will then take off and necessary fixing or handles etc is

made on it and then packed.


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7. PRODUCTION CAPACITY AND QUALITY CONTROL

Production Capacity 50%

No. of Working Days in a month 26 days

No. of Working Days in a Year 312 days

No. of Shifts per day 1

No. of Working hours per shift 8

Production Capacity per year 36,000


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8. POLLUTION CONTROL AND ENERGY

CONSERVATION

POLLUCTION CONTROL:

The entrepreneur is advice to contact concerned state pollution control board for

detailed guidance in the matter.

However the water in this industry is generated during cleaning, washing, pre-

treatment blanching of raw material. It is advisable to test the water discharge as

per specification laid down by such treatment has been made in the profit.

“Royal pressure cooker” not any high conical and raw materials which spread

pollution. They follow government rules of pollution high walls in production

department to reduce the noise pollution.

ENERGY CONSUMPTION:

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

conservation of energy are given below.

1) In electronically installation appropriate electric machinery should be & properly

installed.

2) There should be no folt in machinery.


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9. QULITY CONTROL

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

intention, sincere effort intelligent direction and skillful execution”.

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

In industrial context quality is defined in much more functional fashion thus we

can say that quality means, “Fitness for use” whether for a product or service. It is

also considered as the sum total of the attributes or properties that describe the

product.

Today the existence of any manufacturing unit depends on the

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

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

unit;

In the ROYAL PRESSURE COOKERS Industry are too much

conscious about its product. Industry will have latest equipment for the checking of

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

product and build image in the market. Industry will first check finishing of

cooker, then test vishals test and at last pressure.


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1.MARKET POTENTIAL

The market potential for Pressure Cooker is huge. While there are a vast

no. of people who prefer to buy the Pressure Cooker Thus, initially we will try to exploit this segment of market. We would also like to draw attention

People which use different type of pressure Cooker.

All public is fond of Pressure cooker especially in India. they used to

Cooking in lunch or dinner. In Market our product will be available easily.

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


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2. MARKET SEGMENTATION

According to PHILIP KOTLER :-

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

of customers, where any sub sub-set may conceivably by selected as a market

target ton be achieved with distinct marketing mix.”

The concept of market segmentation is based on the assumption

that markets are not homogeneous but are heterogeneous. Market segmentation

reflects reality in marketing situation. Market segmentation ensures higher

customer satisfaction and improves effectiveness of the marketing programmed.

Market segmentation is a customer’s oriented philosophy.

CRITERIA FOR MARKET SEGMENTATION:-

1. Geographic

2. Demographic

3. Psychographic

4. Socio economic

5. Marketing condition

ROYAL PRESSURE COOKER INDUSTRY segment his market on the basis of

geographic basis. Industry have local market. Industry has consumer users.


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3. PROMOTIONAL EFFORTS

This is the 4th & last topic of marketing mix. According to out study promotion is a

communication activity whole main object is to move forward or push forward a

product, service idea in a channel of distribution. The promotional activity always attempts to afford knowledge, attitude, performance and behavior.

You have best product with fair price people will not buy it they have no many

idea regarding our product. So,it is very important to awards the people from the

existence of product, it feature, uses, benefit, etc. this aspect help in awaking stimulating consumer demand for the product. Not only that but it also helps in

capturing & maintaining demand for product.

In modern marketing it is more tamp to attract the costmer by various promotional

tools gather than good product. Every company directly or indirectly plays, the role of communicate and promoters.We are also going for sample testing.


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4. PRICING POLICY

Pricing decision play a vital role in the development of any industries

because pricing policy is the only factor in marketing mix of any firm which

produces the revenue.

The product for which the firm deals in the main material or we can say

product acts as the heart of human body in the field. The product is manufactured

in a proper & exact manner but if the sales department does work for it then the

efforts are useless.

There is various method of determining price of a product. Industry are as under.

1. Cost plus pricing method

2. Marginal pricing method

3. Going rate pricing method

ROYAL PRESSURE COOKER INDUSTRY will has adopted COST PLUS

PRICING POLICY these types of prices cover the full cost occurred and

company adds some percentage of margins .


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5. DISTRIBUTION CHANNEL

According to WILLIAM J.STANTON:-

“A channel of distribution for a product is the route taken by the

title to the goods as Industry move from the producer to the ultimate customers or

industrial users.”

Distribution channel may be defined the set of marketing

institution participating in the marketing activities involve in the movement

or the flow of goods or distribution indicate rout pathways through which

goods and services flow from producer to customer . Channel of distribution

includes manufacturer , customer as well as intermediaries .

ROYAL PRESSURE COOKER INDUSTRY is ignore long

distribution channel. Distribution channel of Royal pressure cooker industry is as

follows :

PRODUCER

RETAILERS

CUSTOMER


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6. COMPETITORS

“Without competitor you can never win”

Competitor is one of the important partners of the company’s success without

competition one can never know about his limitations but it is also the biggest

hardly in success of the company.

ROYAL PRESSURE COOKER INDUSTRY also her some competitors but

because of good performance of them Industry are able enough to face and

compete with then

Competitors of ROYAL PRESSURE COOKER INDUSTRY

Prestige pressure cooker

Vikaspressure cooker

Hawkins pressure cooker

Kumar pressure cooker

Surajpressure cooker


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1. TOTAL FIXED ASSETS

A) Land & building

Land 25,00,000

Land development & fencing 1,00,000

Factory Building 5,00,000

Office building 3,00,000

Storage house 3,00,000

Bore well 50,000

Water tank 40,000

Main gate 50,000

Watchman’s Cabin 50,000

Lavatory & bathroom 50,000

Total 39,40,000


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B)Plant & machinery

Sr No. Particular Quantity Rate per

machine

Value

1. Cutting Machine 1 4,00,000 4,00,000

2. Stuffing Machine 2 2,00,000 4,00,000

3. Sewing Machine 1 1,73,000 1,73,000

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


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C) Preliminary expenses

Sr. No. Particular Rs.

1. 1. Consultancy fees 20,000

2. 2. Project report preparation fees 30,000

3. 3. Legal expenses of company formation 30,000

Total 80,000


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D) Furniture

Sr

No.

Name of the item Quantity Rate per unit Amount

1. Ordinary table 8 6,000 48,000

2. Computer table 4 5,000 20,000

3. Chairs 120 500 60,000

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

5. Fans 26 1,500 39,000

6. Light 32 500 16,000

7. Door &

windows

10

20

6,000 4,000

60,000

80,000

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

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

10. Refrigerators 3 30,000 90,000

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

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


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TOTAL FIXED ASSETS

Particular Rs.

Land & building 39,40,000

Plant & machinery 9,73,000

Preliminary expenses 80,000

Furniture 8,28,000

Total 58,21,000


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2. TOTAL WORKING CAPITAL

A) RAW MATERIAL (MONTHLY)

Sr No. Particular Quantity Kg.

Rate per Kg.

Amount Rs.

1. 1. Aluminum circle 1,500 100 1,50,000

2. 2. Wishel 2,250 100 2,25,000

3. 3. Gas kit 3,000 100 3,00,000

4. Bakelite handle 3,000 100 3,00,000

5. Balk Patti 3,000 100 3,00,000

TOTAL 12,750 500 12,75,000


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B) Salary and wages

Designation No. of employee

Salary per month

Total amt. monthly

General manager 1 14,500 14,500

Factory manager 1 12,500 12,500

Supervisor 1 10,000 10,000

Clark-cum cashier 1 10,000 10,000

Foreman 2 3,000 6,000

Computer operator 1 6,000 6,000

Salesman 1 4,000 4,000

Store keeper 1 3,000 3,000

Peon 1 2,000 2,000

TOTAL 10 65,000 68,000


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C) Utility (production facilities)

Particular Monthly amt.

Power 10,000

Fuel 4,000

Water 5,000

Oil and Grease 1,000

TOTAL 20,000


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C) Other expenses

Particular monthly

Postage & stationary 3,000

Telephone charges 4,000

Transport charges 6,000

Advertisement expenses 5,000

Insurance 2,000

Repair & maintenance 5,000

Selling expenses 4,000

Other miscellaneous expenses 1,000

TOTAL 30,000


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TOTAL WORKING CAPITAL

Sr No. Particular Amount

A. Raw material 12,75,000

B. Salary and wages 68,000

C. Utility 20,000

D. Other expenses 30,000

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

Total working capital 41,79,000


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(3) TOTAL INVESTMENTS

Sr No. Particular Amount

1. Total Fixed Assets 58,21,000

2. Total Working Capital 41,79,000

Total Investments 1,00,00,000


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(4) SOURCES OF CAPITAL

Total investment

1,00,00,000

Owned capital Borrowed capital

(60%) (40%)

60,00,000 40,00,000


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(5) LOAN REPAYMENT SCHEDUALE

Year Opening balance Interest12% Closing

1. 40,00,000 6,00,000 36,00,000

2. 36,00,000 5,40,000 32,00,000

3. 32,00,000 4,80,000 28,00,000

4. 28,00,000 4,20,000 24,00,000

5. 24,00,000 3,60,000 20,00,000

6. 20,00,000 3,00,000 16,00,000

7. 16,00,000 2,40,000 12,00,000

8. 12,00,000 1,80,000 8,00,000

9. 8,00,000 1,20,000 4,00,000

10. 4,00,000 60,000 -


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(6) DEPRICIATION FIXED ASSETS

(1) YEAR

Name of the assets Opening

balance

Depreciation Closing balance

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

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

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

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

(2) YEAR


balance


Land & building (10%) 35,46,000 3,54,600 31,91,400

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

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

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

(3) YEAR


balance


Land & building (10%) 31,91,400 3,19,140 28,72,260

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

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

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


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(7) ESTIMATED PRODUCTION AND SALES

(A) Estimation of production

Sr No. Production

capacity

Unit of production

1. 1. 50% 18,000

2. 2. 75% 27,000

3. 3. 100% 36,000

(B) Estimated sales

year Opening

stock (unit) Production (unit)

Sales (unit) Closing stock(unit)

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

2. 1,800 27,000 26,100 2,700

3. 2,700 36,000 35,100 3,600


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(8) STOCK OF RAW MATERIAL

Particular Year-1 Year-2 Year-3

Opening stock (unit)

0 1,800 2,700

+ purchases (unit)

19,800 27,900 36,900

_ Consumption

18,000 27,000 36,000

Closing stock in Rs.

1,800 2,700 3,600


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(9) TOTAL FIXED EXPENSES

Particular Amount

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

Utilities (50%) 1,20,000

Other expenses (70%) 2,52,000

Total fixed expenses 8,61,600

Fixed cost per unit = Total Fixed Cost At 100%

Total production at 100%

= 8,61,600

36,000

= 23.93


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(10) TOTAL VARIABLE EXPENSES

Particular year

Raw material 36,00,000

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

Utility (50%) 2,40,000

Other expenses (30%) 2,16,000

Total 47,08,800

Variable cost per unit = Total Variable Expense


= 47,08,800

36,000

= 130.8


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(11) TOTAL COST

Total cost = total fixed expenses + total variable expenses

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

=55,70,400

Total cost per unit = Total Cost


= 55,70,400

36,000

= 154.733


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(12) BREAK EVEN POINT IN UNIT

Break Even Point In Unit = Total fixed expenses

Selling price – variable Cost

= 8, 61,600

500–130

= 2,328


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(13) BREAK EVEN POINT IN RS.

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

= 2,328*500

= 11,64,000 RS.


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TABLE SHOWING FIGURES OF SALES

year Prod. Capacity sales

(unit)

selling price per unit Rs.

total sales Rs.

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

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

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


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TABLE SHOWING FIXED EXPENSES

particular year-1 year-2 year-3

Salary & wages (60%)

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

Utilities (50%)

1,20,000 1,20,000 1,20,000

Other exp. (70%)

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

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


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TABLE SHOWING VARIABLE EXPENSES

Particular year-1 year-2 year-3

Raw material (100%)

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

Salary &

wages (40%)

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

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

Other

expenses (30%)

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

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


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(14) TRADING ACCOUNT

(1) YEAR

Particular Rs. Particular Rs.

To opening stock

Raw material 0

Finish goods 0

To purchase of material

To salary & wages

To utilities

Gross Profit

_

19,80,000

3,26,000

1,20,000

67,53,600

91,80,000

By sales

Cash-40% 32,40,000

Credit-60% 48,60,000

By closing stock

Raw material

Finish goods

81,00,000

1,80,000

9,00,000

91,80,000


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(15) PROFIT AND LOSS ACCOUNT

(1) YEAR


To salary & wages

To utilities

To other expenses

Fixed exp. 2,52,000

Variable exp.1,08,000

To depreciation

Land & building

Plant & machinery

Furniture

Computer

To interest on bank loan

To interest on capital (6%)

To preliminary expenses

To provision for taxes

NET PROFIT

4,89,600 1,20,000

3,60,000

3,94,000

1,45,950

70,800

72,000

6,00,000

3,60,000

80,000

12,18,372

28,42,868

67,53,590

Gross profit 67,53,590

67,53,590


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MVM COLLEGE RAJKOT

(16) BALANCE SHEET

(1) YEAR

liability Rs. Assets Rs.

Own capital 60,00,000

+ Interest on

Capital 3,60,000

+ Net profit 28,42,868

Provision for taxes

12 % Bank loan

Out Standing Interest on Loan

Creditors

Bills Payable

92,02,868

12,18,372

36,00,000

6,00,000

2,97,000

29,700

1,49,47,940

Land &

Building 39,40,000

- dep. 3,94,000

Plant &

Machinery 9,73,000

- dep. 1,45,950

Furniture 7,08,000

- dep. 70,800

Computer 1,20,000

- dep. 72,000

Debtor

Bills Receivable

preliminary -

Expenses 80,000

- Written off 8,000

Closing stock

Raw material

+ finish Goods

Cash in hand

35,46,000

8,27,050

6,37,200

48,000

48,60,000

36,45,000

72,000

1,80,000

9,00,000

2,32,690

1,49,47,940


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MVM COLLEGE RAJKOT

TRADING ACCOUNT

(2) YEAR


To opening stock

Raw material

Finish goods


To salary & wages

To utilities

Gross Profit

1,80,000

9,00,000

27,90,000

4,89,600

1,80,000

1,01,30,400

1,46,70,000

By sales

Cash-40% 52,20,000

Credit-60% 78,30,000

By closing stock

Raw material

Finish goods

1,30,50,000

2,70,000

13,50,000

1,46,70,000


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PROFIT AND LOSS ACCOUNT

(2) YEAR


To salary & wages

To utilities

To other expenses

Fixed exp. 2,52,000

Variable exp. 1,62,000

To depreciation

Land & building

Plant & machinery

Furniture

Computer


To interest on capital

(6%)



NET PROFIT

4,89,600

1,20,000

6,09,600

3,54,600

1,24,057

63,720

28,800

5,40,000

5,52,172

80,000

22,09,035

51,54,416

1,01,30,400

Gross profit 1,01,30,400

1,01,30,400


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MVM COLLEGE RAJKOT

BALANCE SHEET

(2) YEAR


Own capital 92,02,868

+ Interest on

Capital 5,52,172


Provision for taxes

12 % Bank loan


Creditors

Bills Payable

1,49,09,456

22,09,035

32,00,000

5,40,000

4,18,500

41,850

2,13,18,841

Land &

Building 35,46,000

- dep. 3,54,600

Plant &

Machinery 8,27,050

- dep. 1,24,057

Furniture 6,37,200

- dep. 63,720

Computer 48,000

- dep. 28,800

Debtor

Bills Receivable

preliminary -

Expenses 80,000

- Written off 2,000

Closing stock

Raw material

+ finish Goods

Cash in hand

31,91,400

7,02,993

5,73,480

19,200

78,30,000

58,72,500

72,000

2,70,000

13,50,000

14,37,268

2,13,18,841


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MVM COLLEGE RAJKOT

TRADING ACCOUNT

(3) YEAR


To opening stock

Raw material

Finish goods


To salary & wages

To utilities

Gross Profit

2,70,000

13,50,000

36,90,000

6,52,800

2,40,000

1,35,07,200

1,97,10,000

By sales

Cash-40% 70,20,000

Credit-60% 1,05,30,000

By closing stock

Raw material

Finish goods

1,75,50,000

3,60,000

18,00,000

1,97,10,000


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MVM COLLEGE RAJKOT

PROFIT AND LOSS ACCOUNT

(3) YEAR


To salary & wages

To utilities

To other expenses

Fixed exp. 2,52,000

Variable exp. 2,16,000

To depreciation

Land & building

Plant & machinery

Furniture

Computer


To interest on capital

(6%)



NET PROFIT

4,89,600

1,20,000

4,68,000

3,19,140

1,05,448

57,348

11,520

4,80,000

8,94,567

80,000

31,44,293

73,36,684

1,35,07,200

Gross profit 1,35,07,200

1,35,07,200


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BALANCE SHEET (3) YEAR


Own capital

1,49,09,456

+ Interest on

Capital 8,94,567


Provision for taxes

12 % Bank loan


Creditors

Bills Payable

2,31,40,707

31,44,293

28,00,000

4,80,000

5,53,500

55,350

3,01,73,850

Land &

Building 361,91,400

- dep. 3,19,140

Plant &

Machinery 7,02,993

- dep. 1,05,448

Furniture 5,73,480

- dep. 57,348

Computer 19,200

- dep. 11,520

Debtor

Bills Receivable

preliminary -

Expenses 80,000

- Written off 2,000

Closing stock

Raw material

+ finish Goods

Cash in hand

28,72,260

5,97,545

5,16,132

7,680

1,05,30,000

78,97,500

72,000

3,60,000

18,00,000

55,20,733

3,01,73,850


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(17) STATEMENT OF PROFITABILITY

particular year-1 year-2 year-3

sale

-variable

81,00,000

23,54,400

1,30,50,000

35,31,600

1,75,50,000

47,08,800

contribution

-fixed exp.

57,45,600

8,61,600

95,18,400

8,61,600

1,28,41,200

86,600

EBDIT

-Dep.

48,84,000

6,82,750

86,56,800

5,71,177

1,19,79,600

4,93,456

EBIT

-Int.on loan

Int.on capital

42,01,250

6,00,000

3,60,000

80,85,623

5,40,000

5,52,172

1,14,86,144

4,80,000

8,94,567

EBT -Tax @ 30%

32,41,250

9,72,375

69,93,451

20,98,035

1,01,11,577

30,33,473

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


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(18) COST SHEET

PARTICULARS YEAR -1 YEAR -2 YEAR -3

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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RISK FACTOR

Every new business needs to determine its risk factors that the business will face. If

risk factors are carefully determined then the entrepreneur can take better measure

to see that they have limited effect on the business following are some of the risks

that the new business will face:-

The risk of failure of the position

It may take time to beat the competitor’s product.

Due to heavy advertising, it might prove to be expensive and might not give

desired results.

Initially, the production would be low but cost of production may be higher.

The business would take a longer period to reach breakeven point.

Initially, the required amount of sales will not be achievable and will result in loss.

Non-acceptance from the customer’s side.


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SWOT ANALYSIS

Full form of “SWOT”:

STRENGTH:-

Satisfaction of the consumer about the product of the company is main strengths.

Best operation control for quality assurance.

WEAKNESS:-

lack of co-ordination between various departments.

OPPORTUNITIES:-

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

THREATS:-

Government rules and regulation change every time.


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FUTURE PLAN

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

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

Future development may be getting through the increasing installed capacity or

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

So far as our unit is concern we have to utilize fully the available resources of our

unit and by increasing production capacity we want to cover none market share

with maintenance of good quality.

There are so many varieties of pressure cooker in the market. The consumption of

pressure cooker has been increasing over the year. We want to cover more market

in India as well as in international level.


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CONCLUSION

The motto of ROYAL PRESSURE COOKER will be to “provide best quality, with

fever prices.” The company will have to continue same motto and provide better at

lower rate.

One of the good things will be that we will hold briefing discussion every day. In

which, we discuss the problem and find solution.

Every business unit wants to earn maximum profit. But, ROYAL

PRESSURE COOKER aim will not only earn maximum profit but also take care

of people health.

We will never compromise with quality .this will be the way by which we can

capture the market as well as earn profit.


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MVM COLLEGE RAJKOT

Reference Book:

1. Marketing Management : Philip Kotler

2. Marketing Management : S.A Sherlekar

3. Finance Management : Khan & Jain


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Business

pressure cooker