Rajshree International

8/8/2019 Rajshree International

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An Assignment on Entreprenuership Development

And Small Business Management

Submitted To : Radha Vyas

Submitted by: Vinay Dayma

Roll no : 14

Class :TY BBA

Div: A

NAVNIRMAN INSTITUTE OF MANAGEMENT


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INDEX

1. IDEA AND ESTABLISHMENT PROCESS

THE ORIGINAL PARTNERSHIP DEED OF THE

COMPANY2.PROJECT REPORT FOR THE YEAR 2006

3.PROJECTED BALANCE SHEET FOR THE

YEAR 2006

4.TECHNICAL ANALYSIS

5.ACTUAL BALANCE SHEET FOR THE YEAR

2006,2007,2008


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ADDRESS: 2436-37, RADHA KRISHNATEXTILE MARKET

RING ROAD

CITY: SURAT395002

STATUS: PARTNERSHIP FIRMDATE OF INCORP. : 04-10-2006

BUSINESS: RETAIL TRADING

METHOD OF STOCK VALUATION: AT COST OR MARKET RATE

WHICHEVER IS LOWER

SOURCE OF INCOME: BUSINESS/PROFESSION


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Idea and establishment process of the Rajshree

International

The idea of starting the Rajshree International was first come into the

mind of the one of partner Rajendra Dayma. Rajendra Dayma had aworking experience of textiles related works of about 20 years. He started

his career as a broker of the cloth he worked as agent and sell the cloth of

various textiles firm in surat.But due to inavaibility of the capital he doesnt start his business.While

working as a broker he came to across Mr.Jitendra Kotari he belongs to

Dadar and had his own shop in Mumbai but he want to start his business

in Surat. He was searching for the man who has a knowledge regarding thetextile business in Surat.But he also doesnt have a enough capital to start

a business in Surat.

One of the best friend of Jitendra Kothari forced Mr Sandeep Bhandari to

provide him the capital to start a business in Surat.On 4 th October of 2006 the Rajshree was incorporated in Surat with the

great efforts of the three partners.They had decided to share the profit and loss in the following proportion

such as :

1. MR. Jitendra Kothari 30%

2. MR. Sandeep Bhandari 30%3. MR. Rajendra Dayma 40%

Establishment process of the Rajshree International

DOCUMENTATION REQUIREMENTS

PARTNERSHIPFIRM A copy of the Partnership Deed Registration certificate if the firm is availing of any credit

facility / SecuredOverdraft / Temporary Overdraft facility

PAN Card / Form No. 60 of the firm

Passport size Photograph of the authorized signatories

Identity Proof of all the authorized signatories as perL i st-A

Signature Proof of all the authorized signatories as perL i st-

B Address Proof of all the authorized signatories as perL i st-C

Mailing Address of the Concern to be submitted as perList-D only if the address is different from the one

mentioned in the Partnership deed or from

that of any of the partners who is an authorized signatory


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Performa of the project report

Performa for a project scheme for the manufacture of cloth1. Introduction

Rajshree International

(a) Scope :The Indian textile industry is one of the largest and most importantsectors in the economy in terms of output, foreign exchange earnings and

employment in India.(b) Product:dress materials

(c) Process:purchasing of grey sending grey to finish mills

(d) Marketability:through agents and word of mouth publicity

(e) Location2436-37 Radha Krishna textiles market Ring road surat(f) Sources of finance /repayment schedule: Capital

2. Scheme `

(a)Land and building(Rented) 15000p.m.

Owner /rented or leased(b)Machinery and equipment -

(c) Testing equipment -

(d)Other fixed investment(1)Packing and forwarding charges 28000year

(2)Electrification and installation charges 16500year

(3)cost of tools /jigs / fixtures -(4)cost of office equipment 16000

(e)Total Non recurring expenditure (a)+(b)+(c)+(d) 75500

(f)Staff and labour(1)Indirect labour nos and wages p.m. 4000p.m.

(2)Direct labour nos and wages p.m.Total salaries (1)+(2)

(g)Raw Material and consumables 100000(1) Indegenious

(h)Other items of expenditure

(1)Power and water charges 1100(2)Advertising and travelling 1500p.m.

(3) Transport 2000p.m

(4)Commission to distributor 1%of amount(i)Total recurring expenditure (f)+(g)+(h) 109600

(j)Working Capital for three months

particulars October( november december Current assets

1.cash on hand 9500 10000 12000

2.stock 100000 150000 125000

3.debtors 15000 25000 10000

Current libilites

1.creditors 5200 8500 5000

Calculation ca-cl 119300 176500 142000


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(k)Total investment required

(1)Non recurring expenditure 75500(2)Working Capital for 3 months 437800

Total 513300

(l)Total Cost of production(1)Total recurring expenditure 109600

(2)deprecition on machinery and equipment

(3)depreciation on building

(4) Maintenance charges 1000

(5)Interest on total investment

(6)welfare for staff 500(7)Office stationery and postage 1000

Total 112100

(m)Profit and loss account

(1)By sale of (qty) of @ rs(2)Cost of production

(3)profit (1)-(2)

3.Profitability and Projection

Phase of activityProfitability of phases

3. Infrastructural

(1)Locational advantages: market area(2)Avaibility of water /labour/ power

(3)government policy

Break even point(1)Fixed cost

1.Rent = 40000

2.labour=7000(2)Variable cost

1.packing charges=1000

2.light expenses =1200

Sales prices per unit 120*50=6000Q=f/p-v

Q= Break even point

F=Fixed costV=variable cost

P=sales price per unit

By putting all these values in the formula we get the ans as 47000/6000-220012.38

4.Name and address of the suppliers

(1)Raw material

(2) Machinery and equipment


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6. Remarks

PROJECTED BALANCE SHEET OF RAJSHREE

INTERNATIONAL AT THE TIME OF INCORPORATION

YEAR 2006

BALANCE SHEET FOR THE YEAR 2006

TRADING ACCOUNT

PARTICULARS AMOUNT(`) PARTIULARS AMOUNT(`)

OPENING

STOCK

200000 SALES 2266000

PURCHASE 1940000 CLOSING

STOCK

44000

SALES RETURN 85000

GROSS PROFIT 85000

TOTAL 2310000 2310000

PROFIT AND LOSS ACCOUNT

PARTICULAR AMOUNT(`) PARTICULAR AMOUNT(`)

BANK CHARGES 7000 GROSS PROFIT 85000

OFFICE EXPS. 6500

OFFICE RENT. 40000

PACKING

EXPENSE

1000

SALARY 4000

TELEPHONE

EXPS.

1200

TRAVELING

EXPS.

4000

SALARY TO

PARTNER

7000

NET PROFIT 14300

TOTAL 85000 TOTAL 85000

PARTERS ACCOUNT

Jitendra kothari

PARTICULARS AMOUNT(`) PARTICULARS AMOUNT(`)

WITHDRAWAL

BALANCE C/F

279260 OPENING

BALANCE

103970

UTI BANK 150000

REMUNERATIO

N TO FIRM

21000

PROFIT FROM

P&L A/C

4290



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RAJENDRA KUMAR

PARTICULARS AMOUNT(`)

PARTICULARS AMOUNT(`)

BALANCE C /F 63921 OPENING

BALANCE

5201

UTI BANK 25000

REMUNERATIO

N TO FIRM

28000

PROFIT FROM

P&L A/C

5720


SANDEEP BHANDARI

PARTICULARS AMOUNT(`) PARTICULARS AMOUNT(`)BALANCE C/F 229123 OPENINGBALANCE

73901

UTI BANK 100000

UTI BANK 30000

REMONERATIO

N TO FIRM

21000

PROFIT FROM

P&L A/C

4290


BALNCE SHEET AS ON 31-03-2008

LIBILITIES AMOUNT(`) ASSET AMOUNT(`)

JITENDRA KOTHARI 200000 PALLAVI TEX 36750

RAJENDRA KUMAR 80000 PURNIMA TEX 39400

SANDEEP

BHANDARI

215000 RONAK TEX 53000

BALAJI TEXTILES 87000 VARSHA

COLLECTION

212200

J D TEXTILES 34050 UNIQUE

COLLECTION

63300

KANTHARNATH

TEX.

42600 DIPIKA TEX 10000

KUMAR ENTERPRISE 42678 GOKUL FAS 16250

MADHAV TEX 21400 N K TEX 40600MAHESE TEX 134000 NITIN TEX 106000

RAKESH TEX 21000 PRAMODCOLLECTION

30074

SAGAR TEX 106000 SWASTIK COLL 62700

UTI BANK 4140

CLOSING STOCK 154657

CASH ON HAND 154657



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Technical Analysis of Company

Meaning : Technical analysis is connected with the detailed study of various

aspects or requirement of the project . It is the indepth study of the following

aspects of the project:1. Materials inputs and utilities

2. Manufacturing process or technology

3. Location and sites4. Project Engineering

5. Manpower planning

Technical analysis tries to answer following question1. Is the project is feasible?

2. Is the formulation of project is optimum?

1. Material input and utilities: An important aspects of the technical analysis isconcerned with determining the material and utilites required ,specifying there

properties ,setting up there supply program etc.Material input and utilities are classified into 2 categories

1. Raw materials

2. Utilities

1.Raw Material: Rajshree International purchases the grey cloth from the mill

as per the quality to manufactured by them. The grey was purchased from

various mills of Surat. There are various types of grey quality are availablesuch as :

1.Micro2.Shiffon for Dupatta3.Russian

These grey are purchased from the mills in Surat such as

1.Mahesh Dyeing2.Oriental Dyeing and Printing Mills

3.Shree Nathji mills

The rate of various quality are such as :

1.Micro 10.25 per meter2.Shiffin 6.50 per meter

3.Russian 12.50 per meter

The grey are purchased according to the quality to be manufacture by thecompany

b. Utilities: A broad assessment of the utilities like power ,water ,stream, fuelare to be made at the time of the study.

The following question are to be answered such as :

1. What quantities are required?Ans:The quantites are required in Rajshree are grey cloth, Finished cloth,


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2.What would be the potential availability when there is shortage?

Ans:The grey was purchased in stock when the demand was very high in the

market.

2. Manufacturing process and Technology

A product can be manufactured by various alternatives.But Rajshree doesntproduce the cloth they give job to the various mills in surat.

As per Rajshree they give the task of manufacturing process to the printing

mills.They give the programe of the various design to be manufactured by thefirm.

The various finished mills are :

1.Ashwarya mills

2.pegion mills3.Ragini Mills

4.Saibaba Dyeing and printing mills

The cost as per the following ways:

Deying charges 3.50 per meterPrinting Charges 6.50per meter

Rajshree give these various mills the task of the printing and these printingmills will send them the cloth as per firm need.

3.Location And site:The factor of the location and site are divided into following ways

1. Primary factora. Supply of raw materialThe firm get the adequate supply of raw material from the various mills in

Surat.The supply was regular and in advance the order was given to themills about the grey to be purchased.

b.Nearness to the marketThe location of the Rajshree int was near the market. Ring Road wasconsider as the hub of the textile market various bib and small textile

market was located in these area.The transport facility was also available

near to the market. Various transport agencies are located near to the

market.c.Transport facilityThe transport facility was very good in the ring road area.The cheapest

transport agencies are available to the market.d.Supply of labourThe labour are also available at the cheap rate.As it was a market area the

avaibility of the labour was very high.e.PowerThe avaibility of power was also adequate.

f.Supply of Capital


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The avaibility of the capital was also easily avaibile in the market area

.Various banks are avaibile to the location so the take out the payment

from the bank was not so tedious job. Various small money lenders arealso avaible to the location they provide the cash readily. And various

textiles shop owner also provide help whenever it required.


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BALANCE SHEET FOR THE YEAR 2006 & 2007TRADING ACCOUNT 2006


OPENING

STOCK

275115 SALES 2139190.00

PURCHASE 1946640 CLOSING

STOCK

440344

SALES RETURN 85860

GROSS PROFIT 271919

TOTAL 2579534 2579534

PROFIT AND LOSS ACCOUNT



OFFICE EXPS. 16580

OFFICE RENT. 48000

PACKING

EXPENSE

28560

SALARY 60000

TELEPHONE

EXPS.

12060

TRAVELING

EXPS.

15496

SALARY TO

PARTNER

70000

NET PROFIT 14071


PARTERS ACCOUNT

Jitendra kothari


WITHDRAWAL

BALANCE C/F

279122.00 OPENING

BALANCE

103901

UTI BANK 150000

REMUNERATION TO FIRM

21000

PROFIT FROMP&L A/C

4221

TOTAL 279122.00 TOTAL 279122.00

RAJENDRA KUMAR


BALANCE C /F 88829 OPENING

BALANCE

5201

UTI BANK 25000

REMUNERATIO

N TO FIRM

28000

PROFIT FROM

P&L A/C

5628



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TRADING ACCOUNT 2007


Purchase 1387596 SALES 1839179

PROCESS 530677 SALES RETURN 19485

GROSS PROFIT 176536 CLOSINGSTOCK

275115

TOTAL 2094809 TOTAL 2094809

PROFIT AND LOSS ACCOUNT 2007



OFFICE EXPS. 18250

PROFESSIONAL

TAX

1200

PACKING

EXPENSE

22500

SALARY 58000

TELEPHONEEXPS.

4490

TRAVELING

EXPS.

10460

SALARY TO

PARTNER

50000

NET PROFIT 13003


PARTERS ACCOUNT 2007

Jitendra kothari

PARTICULARS AMOUNT(`) PARTICULARS AMOUNT(`)WITHDRAWAL

BALANCE C/F

103901 CAPITAL

CONTRIBUTION

100000

PROFIT FROM

P&L A/C

3901


RAJENDRA KUMAR


BALANCE C /F 5201.00 CAPITAL

CONTRIBUTION

FROM P&L A/C

5201



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SANDEEP BHANDARI


BALANCE C/F 73901.00 CAPITALCONTRIBUTION 70000

PROFIT FROM

P&L A/C

3901

TOTAL 73901.00 TOTAL 73901.00

BALNCE SHEET AS ON 31-03-2007

LIBILITIES AMOUNT(`) ASSET AMOUNT(`)

JITENDRA KOTHARI 103901 APNE ENTERPRISE 4600

RAJENDRA KUMAR 5201 DIPIKA TEX 10950

SANDEEP

BHANDARI

73901 FASHION TEX 97736

VARDHAMANFABRICS

269496 JANVI COLLECTION 20340

J D TEXTILES 53910 PALLAVI TEXTILES 30299

ISHAN TEXTILES 70140 PARASHWA TEX 246254

RINCY TEXTILES 241050 POKHLE TEXTILES 16560

MADHAV TEX 169081 POOJA TEXTILES 22764

MAHESE TEX 51600 PURNIMA TEXTILES 77483

RONAK TEXTILES 121811

SAI NATH TEXTILES 32781.00

VINOD FABRIS 12060.00

UTI BANK 56136

CLOSING STOCK 275115

CASH ON HAND 13391

TOTAL 1038280 TOTAL 1038280


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Conclusion:Small Scale industries plays important role in development in shaping the

economy of India.

Opportunity

The opportunities in the small-scale sector are enormous due to the following factors:

Less Capital Intensive

Extensive Promotion & Support by Government

Reservation for Exclusive Manufacture by small scale sector

Project Profiles

Funding - Finance & Subsidies

Machinery Procurement

Raw Material Procurement

Manpower Training Technical & Managerial skills

Tooling & Testing support

Reservation for Exclusive Purchase by Government

Export Promotion

Growth in demand in the domestic market size due to overall economic growth

Increasing Export Potential for Indian products

Growth in Requirements for ancillary units due to the increase in number of greenfieldunits coming up in the large scale sector. Small industry sector has performedexceedingly well and enabled our country to achieve a wide measure of industrial growthand diversification.

Production

The small-scale industries sector plays a vital role in the growth of the country. It contributesalmost 40% of the gross industrial value added in the Indian economy.

It has been estimated that a million Rs. of investment in fixed assets in the small scale sectorproduces 4.62 million worth of goods or services with an approximate value addition of tenpercentage points.

The small-scale sector has grown rapidly over the years. The growth rates during the various planperiods have been very impressive. The number of small-scale units has increased from anestimated 0.87 million units in the year 1980-81 to over 3 million in the year 2000.

When the performance of this sector is viewed against the growth in the manufacturing and theindustry sector as a whole, it instills confidence in the resilience of the small-scale sector.


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Documents

Rajshree International