1. Project Family Treeof Shaham & Friends SSI UnitDodhpur
Aligarh Presented by: Abu Shaham 10-MBA-18
2. Project Family Tree ABU SHAHAM (Owner) Mohd Alam Shamsuzzama
(Manager) (Chemist) Mujahid Misbah Nemat(Accountant) (Clerk) (Tech.
staff) Urman Sarfaraz (Skilled labour) (Un skilled labour)
Sissharth,Umar,Azhar,Nasir (Casual Labours)
3. Project to start a ball pen inkindustry in Aligarh PRODUCT
CODE : XYZ PRODUCTION CAPACITY : Quantity : 12,000 litres (per
annum) Value : Rs. 30,00,000 MONTH AND YEAR : January, 2013 In Sha
Allah Dodhpur Aligarh UP 202002 Ph. No: xxxxxxxxxx Fax No:
xxxxxxxxxx
4. Why ball pen Ink? Ball pen is one of the most essential
items for students, educational institutions and for office work,
etc. Ink is a viscous and coloured fluid composed of reflux blue,
varnishes, oil and drier. This is a mass consumption item.
5. Market Potential Ball pen is the most common tool for all
schools, colleges and university going students for writing
purpose. As greater emphasis is being laid on removal of illiteracy
by the government. The prospects of Ball pen ink industry is
bright.
6. Basis And PresumptionsEfficiency and working hours 8 working
hours/day/shift 300considered for full capacity days taken into
accountutilization. annually.Time period for achieving full Within
2 months after trialcapacity utilization. production.Labours, wages
and conditions. As per local salaries.
7. ContInterest rate for fixed and Average @ 14%working
capital.Margin money Average 25%Rented shed With partition walls 20
21Costing of machinery and As per local rates.equipment.
8. Implementation Schedule1. Selection of site 2 months2.
Collection of quotation for 2 monthsM/c and Equipment3. Procurement
of machinery 1 month4. Placement of order for raw 1/2
monthmaterial5. Commercial production month 6 months Total
9. Technical AspectsProcess of Manufacture Metal complex dyes
and complexes in castor oil/stand oil, varnishes and driers are
mixed together in suitable proportions in a mixing machine. The
material so produced is called ball pen Ink
10. ContQuality Control and Standards As per market
demand.Production Capacity (per annum) Quantity 12,000 litres Value
Rs. 30,00,000Motive Power Electric power 5 H.P. approx. Man power 8
Nos.Pollution Control No liquid or gaseous effluents are released
during the process. Pollution is not involved.
11. Financial AspectsA. Fixed Capital(I) Shed of size (rented)
2020with partition wallsRs. 200 per month(ii) Machinery and
Equipments
12. ContDescription of M/Es Qty. Price (Rs.)Mixing machine with
motor Cap. 10 litres 1 60,000per 8 hrs.Weighing m/c platform type
Cap. 50 kg. 1 15,000Shovel made of stainless steel material 4
4,000Scraper knife 4 1,600
13. ContStorage tank (for varnish and oil) 2 8,000 1Triple Roll
Mill 50,000 13 Total 1,38,600
14. Cont(iii) Testing Equipments Qty. (Rs.)Fords cup 2
2,500Rectangular Glass Sheet 2 800Exhaust Fan (for pollution
control) 1 800Cost of power connection,Electrification and
installationCharges@ 10% of the cost of M/c. and
14,270equipments
15. Cont(iv) Total Cost of M/c. and Equipment Rs. 156970Cost of
office equipments/working Tables and chairs etc. Rs. 5,000(v)
Pre-operative Expenses Rs. 5,000(vi) Total Fixed Capital Rs.
1,66,970
16. B. Working Capital (per month) (i) Personnel Designation
No. Salary Total (Rs.) (Rs.)1. Manager/Chemist 1 3,000 3,0002.
Accountant/Clerk 1 2,000 2,0003. Skilled workers 2 1,500 1,500
17. Cont4. Unskilled workers 2 1,200 2,4005. Casual labour 2
1,000 2,000 12,400 Total(+) Perquisites @ 15% of salaries 1,860
14,260 Total
18. (ii) Raw material (per month) Item Qty. Rate Value (Rs.)
(Rs.)a) Metal Complex dyes 200Kg. 400/ kg. 80,000b) Stand
oil/castoroil/solvents 550 kg. 130/Kg. 71,500c) Varnishes
(alkyd/Phenolic/Maleic) 250 Kg. 140/Kg. 35,000d) Drier 10 Kg.
230/Kg. 2,300 1,88,800 Total
19. (iii) Utilities (per month) (Rs.)a) Power 5 H.P. @ Rs.
3/unit 2,250 Utilitiesb) Water charges 500 2,750 Total
20. (iv) Other Contingent Expenses (per month) (Rs.) a) Rent of
the shed 2,000 b) Postage and stationery 500 c) Consumable stores
500 d) Repairs and maintenance 500
21. Cont e) Transport charges 1,000 f) Advertisement and
publicity 1,500 g) Insurance 1,500 h) Sales expenses and
miscellaneous 1,000 expenditure Total 8,500
22. (v) Total Recurring Expenditure (per month) (Rs.) a) Raw
material 1,88,800 b) Utilities 2,750 c) Salary/Wages 14,260 d)
Other expenditure 8,500 2,14,310 Total
23. C. Total Capital InvestmentFixed capital Rs.
1,66,970Working capital for 3 months Rs. 6,42,930 Rs. 8,09,900
Total
24. Financial Analysis(1) Cost of production (per year) (Rs.)a)
Total expenditure 25,71,720b) Depreciation on machinery @ 10%
14,270c) Depreciation on furniture @ 20% 1,000d) Interest on total
capital investment 1,13,400 Total 27,00,390
25. Cont(2 )Turnover (per year) (Rs.)Ball Pen Ink 12 KL @ Rs.
250 per litre 30,00,000Net Profit Before Income Tax 2,99,610 10%Net
Profit Ratio 37%Rate of Return 46.6%Break-even Point
26. (i) Calculation of Fixed Costa) Depreciation on m/c
equipments and office 14,270equipmentsb) Rent of shed 24,000c)
Interest on total investment 1,13,400d) Insurance 18,000e) 40% of
salaries and wages 68,448f)40% of other contingent expenses 24,000
2,62,118 Total
27. Calculation Of B.E.PB.E.P = FC 100 FC+Profit = 2,6,2118 100
2,62,118+ 2,99,610 = 2,62,118 100 5,61,728 = 46.6%
30. Addresses of Raw Material Suppliers M/s. Sarfaraz Quinon
Pvt. Ltd. Saharanpur M/s. Alam Product Deoband M/s. Rafnas Organics
Ltd. Calicut M/s. Azhar Dye Stuff Industries Ltd. Aligarh M/s. Ali
Chemical and Industry Ltd. Calicut