A Project ON " " (Petrol Saver.) : New Product Innovatation

A
PROJECT
ON
NEW PRODUCT INNOVATATION
(PETROL SAVER.)
Submitted To
Submitted By
Shakti B Dodiya
Juhi Patel (33)

MBA sem IV
S.K SCHOOL OF BUSINESS MANAGEMENT
(HEMCHANDRACHARYA NORTH GUJARAT UNIVERSITY)
S.K.School of business management
Page 1
Preface
Being a student of M.B.A., I am extremely happy to submit this project

report on small scale Industry. Under the prescribed syllabus of H.N.G.University for
particularly introducing a subject Enterpreneaurship.Enterprenearship is management
of SSI with a view to create & develop such skills & attitude among the student in
practical & professional education faculty.
The goal or object of this project report is to make students learn about
various factors that should be kept in mind before setting up an industry . In other words,
it is purely entrepreneurship development & training for establishment of SSI.
The contribution of SSI is 45% in the economic growth of the country so,
it becomes essential to study the management & working of SSIs as a student of
management.
Page 2
ACKNOWLEDGEMENT
It is really a matter of great pleasure for me to undertake & present this

creative & practical work , a product project report of M.B.A. on PETROL SAVER.
This report has been prepared by keeping in mind various aspects relating
to financial capacity of the plant which is to be established , the fast growth &
development in the fields of petrol industry .
I grab the opportunity to express my sincere thanks to Shakti.B.Dodiya
who has guided me in preparing this report . I would also like to express my gratitude to
SSI & all those who have assisted me in the preparation of project.
Page 3
INDEX
SR. NO
PARTICULARS
PAGE.NO
Introduction
Project at Glance
Organizational Structure
Justification of Location
10
Product Details
14
Market Potential
15
Raw Materials
17
Machines
18
Manufacturing Process
19
10
Production Capacity Schedule
20
11
Staff and Labour Details
21
12
Financial Details
22
13
Cost of Production
23
14
Total Working Capital Requirement
23
Page 4
15
Total Project Fund
24
16
Sources of Finance
25
17
Interest on Borrowed Capital
25
18
Depreciation
26
19
Annual Cost of Production
27
20
Sales Forecast
27
21
Break Even Analysis
28
22
Cost of Capital
29
23
Return on Investment
30
24
Profitability Analysis
30
25
Projected Operating Statement
31
26
Projected Cost Sheet
32
27
Projected Balance Sheet
39
28
Particulars of Raw Material Consumed
41
29
Particulars of Finished Goods
42
30
Schedule for Fixed Assets
43
31
Schedule for Factory Overhead
42
Page 5
32
Schedule for Selling and
43
33
Administrative Overhead
Risk Factors
44
34
Name and Address of Raw Material Suppliers
46
35
Name and Address of Machineries Supplier
47
36
Disclosure of Significant Accounting Policy
47
INTRODUCTION
The industrial structure of India can be classified into three main groups ;
they are capital goods, consumer goods & small scale sectors . the small scale industries
can further be subdivided into village or cottage industries & modern small scale industry
. The village / cotton industries produce traditional commodities like handloom clothes &
other necessary products, etc. The modern small scale industries on the other hand
produce non-traditional commodities like machine tools, radio sets, automobiles parts ,
components , etc.
Page 6
According to the industrial policy paper of 1956, SSI ensure more

equitable distribution of national income & they facilities an effective mobilization of
resources, capital & skills. Some of the problems that unplanned urbanization tends to
create will be avoided by the establishment of small centers of industrial production all
over the country
To over come such problems , we now a days find some firms co-existing
with the large firms in the business world.
PROJECT AT A GLANCE
Name of unit
:- KAPIL l petrol saver
Product
:- petrol saver
Address of communication
:- Radhe Kishana
150ft ring road,
Page 7
UNJA-05
Gujarat (India)
Forms of Organisation
:- Private sector
Locaton of the unit

Mahesana
:- GIDC industrial area Shaper industrial area , UNJA
Owner name
:- juhi patel
Cost of Project
:- 70,00,000
ORGANISATION STRUCTURE
General Manager
Production
Manager
R&D
manager
Accounts &
Finance
Manager
Personnel &
Admin.
Manager
Manager
Mrkt
Page 8
Dispatch
Officer
Procurement
Prod. Mger
Peon
R&D
Officer
Accounts &
Personnel &
Mrkt
Finance
Admin.
Officer
Officer
Officer
R&D
Chief
Executive Accountant
Peon
Seniour
Officer
Mrkt
Executive
Asst.
Accountant
Clerk
Peon
Peon
Peon
JUSTIFICATON OF LOCATION
Location is the prime factor which has to be considered for starting a new
business. The location should be decided by considering all factors & making
independent analysis of each variable separately through cost benefit analysis & the
location should either be near to the market (i.e. customer) or where the raw material is
easily available & in the adequate quantity.
Page 9
1). Raw Material :The major component or major input which is an inevitable part of any
product process is , raw material. Raw Material at proper time, at a reasonable cost , in
right quality directly affects the price of the final product.
In case of this industry , the basic Raw material is choronated hydrocarbon
components , lubricating oil & also ferrous, calcium , aluminium & magnesium which are
available from the surrounding areas of the state.
2). Labour :Man power input i.e. labour holds importance after the raw material .
cheaper & effective labour availability enriches the firm & thus , it is very crucial in
nature.
In this case ,technically skilled & unskilled labour is required which is
easily available from the nearby areas.
3). Water :S.K.School of business management
Page 10
The purposed product does not highly depend upon water supply but still
there is requirement of water at some or the other extent & that is easily available from
our own sources & water supply by municipal corporation.
4). Market :The main aim of every product is to get potential market & proximity to
market is also one of the most considerable variables . Due consideration to the variables
will add to the prosperity of the firm & ultimately will help in attaining consumer
satisfaction.
The market for petrol saver is definitely going to increase because of the
peaking hights of the petrol , increased day by day. It has got opportunities with in &
abroad the county.
5). Transportation :Speedy transport facilities are needed for the regular & timely supply of
raw material & finished goods. It should be done keeping in mind the requirement & its
nature . This also includes controlling supply according to change in demand .
As far as our product is concerned , we easily get road transport & rail
transport facility, & as far as export is concerned, our state process kandla port which can
be taken into use if necessary.
Page 11
6). Miscellaneous factors :We have selected our location after taking into account the following
factors :-
1) Availability of infrastructural facilities

2) Availability of banks or financial institution
3) Availability of bodies such as hospital dispensaries, post offices, etc enjoyed
by the community.
PRODUCT DETAILS
1). Product characteristics :The principle of preparation of this product is to mix together the
basic raw material to let them undergo the chemical process . This would result into a
dilute which could also be conveted into dried form after passing it through the dryer.
This can be shaped into tablets or capsules also. This dilute substance / tablets will have
to be added to the petral tank to any machinery where petrol is used as a fuel to get the
unexpected result of saving petrol to 18% & it also ensure drastic reduction of exhaust &
Page 12
noise pollution above 60%. It also cleans carburetter & make the engine performance
more effective. It is harmless to engine components & improves pick-up .
2). Product Properties :-
IT IS
Non inflammable
Harmless to skin
Non poisonous
Non explosive
Does not mix in water
Stain free
Evaporates on temperature 63 degree calcious -75 degree

calcious
3).Product abstract material :This has been developed by bringing together, non-inflammable &
non-explosive liquids which are blended with fossil fuel & mixed with appropriate
quantity of catalysis an essential ingredients of synprol process.
4). Product uses :-
Page 13
This product is a complementary product therefore its use depends

upon petrol & so this can be used wherever / in machinery / engine where petrol is
utilized as fuel .
5). Product benefits ; Saves petrol over 18%
Reduces exhaust & noise pollution
Improves pick-up
Frequency of recharging the electic battory & voltage dripping will
reduce considerably
Reduces wear & tare.
MARKET POTENTIAL
The business is becoming more & more competitive everyday. We

generally believe that the business segment in which we will we operate offers us
opportunity for growth. In such competition , one has to endeavour their skills in quality
product gifting, brand equity & healthy distribution network so, as to maintain a
sustainable , stable & leading position in the market. Now let us have a look over the
Page 14
figures of on road vehicles which have maximum usage of petrol and that is the potential
market of this product.
Sr.n
o
Class of vehicles
1).
2).
Motor cycle
Auto rickshaws
At the end of
march
2014
2015
13,25,826
40,64,869
99,918
2,30,664
3).
4).
5).
6).
Jeep
Motor cars
Passenger buses
Goods vehicles
33,700
3,41,584
1,82,500
1,19,461
84,117
5,38,549
2,50,550
3,30,911
2016
47,025,529
2,56,375
As on 31st oct
2016
2016
50,64,773
2,86,900
90,263
6,41,950
3,45,660
5,52,625
1,08,227
9,52,959
4,58,320
6,75,150
Taking a keep observation over the figures it can be said that the vehicles
so specified would demand much petrol and if at once this product is offered to the
market then it will be able to save more petroleum which is becoming rather an
Exhaustive resource.
Bright prospects & promising future :Petrol being an exhaustive resource has started giving intimation
about its non-availability in future since last decade. The petrol saver shall be used
extensively so as to use petrol at optimum level. Therefore there will be no problem of
selling this product because of its proposed increasing demand. But in future there is a
Page 15
greater possibility of the competitors to enter into this market. So we will have to be more
cautious & alert regarding the study of business environment & market environment.
Page 16
RAW MATERIAL DETAILS

The basic raw material of this product is fossil fuel. They
constitute choronated Hydrocarbon components, lubricating oil, ferrous, calcium,
aluminium & magnesium. The above raw material is available form the area stated
below
Bharuch
Surendranagar
Kerala&lakshwadee
:- all chemicals
:- all chemicals
:-calcium ,calcium
carbonate
Madhya Pradesh ,
Chhatisgarh, goa
Maharashtra,
Karnatak
:- magnesium
Page 17
MACHINARY REQUIREMENT
The manufacturing of this product requires the following type of
machinery
PARTICULARS
Equilization tank
Shield drier
Primary system
Filtration system
Boiler
Discharge sump
Solid waste storage pit with imperious
lining
NO . OF . UNITS
1
2
1
1
1
2
1
Page 18
MANUFACTURING PROCESS
The principle of this product mix together the basic raw material to let them
undergo the chemical process. This would result into a dilute which could also be
converted into dried form after passing it through the dryer. This can be shaped into
tablets or capsules also. This dilute substance / tablets will have to be added to the petrol
tank to any machinery where petrol is being used to get the unexpected result of saving
petrol to 18% & it also ensure drastic reduction of exhaust & noise pollution above 60%.
It also cleans the carburetor & makes the engine performance more effective. It is
harmless to engine components & improve the pick-up.
It is non-flammable harmless to skin non poisonous & non explosive. Thats why
it can be easily used in petrol n due to this it is easily mixed with petrol & covers the
layer of the engine to give you a better mileage & pick-up. But it should never mix with
water and it will be evaporates on temperature 63 degree Celsius 75 degree Celsius.
This has been developed by bringing together, non-inflammable & non-explosive liquids
which are blended with fossil fuel & mixed with appropriate quantity of catalysts an
essential ingredient of synprol process.
Page 19
PRODUCTION CAPACITYSCHEDULE
The production capacity of this establishment plant will be 800 lts. Per day.
The schedule for production would be as follows.
There would be a single shift i.e 8:00am to 8:00pm (Including lunch break)
The whole production process would be carried out simultaneously & the post
production process will also be speedily carried out.
Page 20
STAFF & LABOUR DETAILS
Factory staff
Skilled workers
Semi skilled workers
Unskilled workers
3
5
7
Administrative
staff
Manager
Supervisor
Clerk
Accountant
Salesman
Watchman
1
2
1
1
1
1
FINANCIAL DETAILS
LAND
SR.NO
PARTICULAR
SQ.FT
1.
LAND
1500
PRICE PER
SQ.FT
600
TOTAL
9,00,000
BUILDING
SR.NO
PARTICULAR
SQ.FT
1.
BUILDING
2500
PRICE PER
SQ.FT
300
TOTAL
7,50,000
Page 21
TOTAL
TOTAL
4000
900
16,50,000
PLANT & MACHINERY

SR.
NO
1.
2.
3.
4.
5.
6.
7.
PARTICULAR
NO OF
UNITS
1
2
1
1
1
2
1
EQUILISATION TANK
SHIELD DRIER
PRIMARY CLARIFICATION
FILTERATION SYSTEM
BOILER
DISCHARGE SUMPS
SOLID WASTE STORAGE PIT
TOTAL
PRICE PER
UNIT
2,00,000
2,00,000
1,50,000
1,60,000
5,00,000
3,00,000
2,68,000
TOTAL
2,00,000
4,00,000
1,50,000
1,60,000
5,00,000
6,00,000
2,68,000
22,78,000
OTHER FIXED ASSET

PARTIDCULAR
FURNITURE & FIXTURE
COMPUTER
ELECTRIC FITTING
TELEPHONE
TOTAL
NO OF QTY
2
2
TOTAL
8,72,000
70,000
1,20,000
10,000
10,72,000
TOTAL FIXED ASSETS

SR.NO
1.
2.
3.
PARTICULAR
LAND & BUILDING
MACHINARY & EQUIPMENTS
OTHER FIXED ASSETS
TOTAL
TOTAL
16,50,000
22,78,000
10,72,000
50,00,000
Page 22
COST OF PRODUCTION
RAW MATERIAL
SR.NO
1.
2.
3.
4.
CHEMICALS
CALCIUM
MAGNESIUM
ALUMINIUM
FERROUS
TOTAL
RS PER K.G
120
150
10
20
QTY REQ
12000
18000
15000
1800
AMOUNT
14,40,000
27,00,000
1,50,000
36,000
42,00,000
STAFF & LABOUR SALARY

SR.NO
1.
2.
3.
4.
5.
6.
7.
PARTICULAR
MANAGER
ASS.GEN MANAGER
DEPT MANAGER
OFFICER (DEPT)
STORE KEEPER
PEON
SALES PEOPLE
TOTAL
SALARY
1,20,000
96,000
84,000
48,000
24,000
14,400
30,000
NO
1
1
5
5
2
2
4
AMOUNT
1,20,000
96,000
4,20,000
2,40,000
48,000
28,800
1,20,000
10,72,800
UTILITIES
PARTICULAR
DIESEL
PER YEAR
1,50,000
ELECTRICITY
3,50,000
TOTAL
5,00,000
Page 23
OTHER EXPENSES
SR.NO
1.
2.
3.
4.
5.
6.
7.
8.
9.
PARTICULAR
POSTAGE & STATIONARY
TRANSPORTATE EXPENSE
INSURANCE
REPAIRS & MAINTAINANCE
SALES EXPENSE
TELEPHONE & ADVERTISING EXPENSE
ELECTRICITY EXPENSE
WATER EXPENSE
UTILITIES
TOTAL
AMT
9,600
96,000
48,000
24,000
30,000
1,08,000
1,20,000
48,000
1,32,000
6,15,600
TOTAL WORKING CAPITAL

SR.NO
1.
2.
3.
4.
PARTICULAR
Raw Material
Salary & wages
Utilities
Other expenses
Total
AMOUNT
42,00,000
10,72,800
1,32,000
4,83,600
57,56,400
TOTAL CAPITAL INVESTMENT

SR.NO
1.
2.
3.
PARTICULARS
TOTAL FIXED ASSETS
TOTAL WORKING CAPITAL REQ
CASH IN HAND
TOTAL
AMT
50,00,000
14,39,100
5,60,900
70,00,000
Page 24
SOURES OF FINANCE
OWN CAPITAL
PARTICULAR
VICKY.J.VASANI
%OF TOTAL CAPITAL

50%
AMT
35,00,000
BORROWED CAPITAL
PARTICULAR
ICICI BANK
%OF TOTAL CAPITAL

50%
AMT
35,00,000
TOTAL CAPITAL INVESTED

PARTICULAR
TOTAL
TOTAL AMT
70,00,000
INTEREST ON CAPITAL
SR.
NO
1
2
DETAILS
OWNER CAPITAL
VICKY.J.VASANI (50%)
35,00,000
INTEREST
RATE
8%
BORROWED CAPITAL
ICICI BANK LTD (50%)
35,00,000
12%
TOTAL
70,00,000
LOAN AMT
INTERST
AMOUNT
2,80,000
4,20,000
7,00,000
Page 25
DEPRECIATION
SR.NO
1.
2.
3.
4.
PARTICULAR
AMT
BUILDING @ 13%
MACHINERY & EQUIPMENTS @ 15%
OTHER FIX ASSETS @ 15%
COMPUTERS @ 40%
TOTAL
97,500
3,71,700
1,50,300
28000
6,47,500
ANNUAL COST OF PRODUCT

SR NO
1.
2.
3.
4.
5.
PARTICULAR
TOTAL
42,00,000
6,47,500
10,72,800
6,15,600
7,00,000
72,35,900
RAW MATERIAL
DEPRECIATION
STAFF & LABOURS SALARY
OTHER EXPENSES & UTILITIES
INTEREST ON CAPITAL
TOTAL
SALES FORECAST
YEAR
UNITS PER ANNUM
RATE PER UNIT
SALES (RS)
1
2
3
4
5
8,67,305
9,25,125
9,25,125
10,40,766
11,56,407
20
20
25
25
30
1,73,46,100
1,85,02,500
2,31,28,125
2,60,19,150
3,46,92,216
FIXED COST
SR. NO.
1.
PARTICULARS
Depreciation
AMOUNT
6,47,500
Page 26
2.
3.
4.
Interest on Capital
Salary (50%)
Other exp & utilities (30%)
TOTAL
7,00,000
5,36,400
2,41,800
21,25,700
FIXED COST :- TOTAL FIXED COST

TOTAL NO OF UNITS
21,25,700
8,67,305
TOTAL FIXED COST = 2.45 PER UNIT
VARIABLE COST
SR. NO.
1
2
3
PARTICULARS
Raw Material
Salaries (50%)
Other exp and utilities
TOTAL
AMOUNT
42,00,000
5,36,400
6,15,600
55,93,800
VARIABLE COST = TOTAL VARIABLE COST

TOTAL NO OF UNITS
55,93,800
8,67,305
VARIABLE COST = 6.45 PER UNIT
TOTAL COST = FIXED COST + VARIABLE COST
= 2.45 + 6.45
= 8.90 PER UNI
Page 27
BREAK EVEN ANALYSIS

Break-even point is that point of achieving, where total revenue and total
expenses are equal. It is the point of zero profit. If the sales exceed BEP the business
will earn profit and if it decreases from BEP the business will incur loss. Thus, BEP may
take, as the minimum level of production and sales and company must attain in order to
be economically viable.
1)
Contribution per unit = sales price variable cost

= 20-6.45
= 14.11 per unit
2)
B.E.P (in units) =

Total fixed cost
Contribution per unit
21,25,700
14.11
B.E.P.= 1,50,625 (bottles)
3)
B.E.P (in Rs) = B.E.P(units) X sales price per unit

1,50,652 X 20
B.E.P.=30,13,040 Rs
4)
B.E.P in (%)
Total fixed cost X capacity units

Total f.c + profit(EBIT)
21,25,700
21,25,700+11,55,000
X 75
15,94,27,500
32,80,700
B.E.P in (%) = 48.60%
Page 28
LOAN REPAYMENT SCHEDULE

YEAR
1
2
3
4
5
6
7
8
9
10
O/P BAL.
35,00,000
31,50,000
28,00,000
24,50,000
21,00,000
17,50,000
14,00,000
10,50,000
7,00,000
3,50,000
INSTALLMENT
3,50,000
3,50,000
3,50,000
3,50,000
3,50,000
3,50,000
3,50,000
3,50,000
3,50,000
3,50,000
CL. BAL.
31,50,000
28,00,000
24,50,000
21,00,000
17,50,000
14,00,000
10,50,000
7,00,000
3,50,000
-----
INTERST
4,20,000
3,78,000
3,36,000
2,94,000
2,52,000
2,10,000
1,68,000
1,26,000
84,000
42,000
AVERAGE COST OF CAPITAL

SR.NO
1
2
PARTICULAR
Owned Capital
Borrowed Capital
Total
CAPITAL
35,00,000
35,00,000
70,00,000
RATE
8%
12%
20%
INTEREST
2,80,000
4,20,000
7,00,000
Average Cost Of Capital = Interest X 100

Capital
= 7,00,000 X 100
70,00,000
Average cost of capital = 10 %
Page 29
RETURN ON INVESTMENT
Return on investment
EBIT
X 100
Cost of product
= 11,55,000 X100
70,00,000
Return on investment = 16.5%
PROFITABILITY AND PROFITABILITY ANALYSIS

PARTICULAR
Sales
Less
Cost of Production
EBIT
Less
Interest
EBT
Less
Tax
EAT
AMOUNT
1,73,46,100
1,61,91,100
11,55,000
7,00,000
4,55,000
86,500
3,68,500
GROSS PROFIT RATIO

GPR
= Gross Profit / Sales X 100

= 14,36,000 / 1,73,46,100 X 100
= 8.27%
NET PROFIT RATIO
NPR
= Net Profit / Sales X 100
Page 30
= 6,06,500 / 1,73,46,100 X 100

= 3.50%
FIXED ASSET TURNOVER RATIO
FATR = Total Fixed Asset / Sales X 100
= 15,00,000 / 1,73,46,100 X 100
= 8.64%
TAX SLAB
PATICULAR
EBT
Less
Less
Less
AMOUNT
4,55,000
1,00,000
3,55,000
50,000
3,05,000
1,00,000
2,05,000
Total Taxable Amt.
RATE AND TAX AMT

NIL
5000 @ 10%
20,000 @ 20%
61500 @ 30 %
86,500
Page 31
PROJECTED OPERATING STATEMENT

PARTICULAR
Sales
COST OF OPERATION
Raw material
Utilities
Labour
YEAR 1
1,73,46,100
YEAR 2
1,85,02,500
YEAR 3
2,31,28,125
42,00,000
60,00,000
90,28,000
6,15,600
10,72,800
2,55,000
10,72,800
4,80,000
10,72,000
-----
-----
-----
-----
-----
-----
27,00,000
27,00,000
27,00,000
27,00,000
2,14,82,100 2,27,30,300
27,00,000
3,70,08,125
ADD:
Op. Stock of raw material
LESS:
Cl. stock of raw material
ADD:
Op. stock of finished goods
-----
LESS:
Cl. stock of finished goods
TOTAL COO
GROSS PROFIT
(Sales Cost of Operation)
INDIRECT EXPENSES
Factory expenses
Administrative expenses
Total Indirect Expenses
EBIT:
(Gross Profit Indirect exp)
LESS:
Interest on Borrowed
Capital
EBT:
LESS:
TAX
EAT:
14,36,000
12,27,800
13,50,000
4,83,600
89,400
5,73,000
5,67,000
90,000
6,57,000
5,77,729
1,94,651
5,50,700
8,63,000
6,09,100
7,99,300
4,20,000
3,78,000
4,75,200
4,43,000
2,31,100
3,24,100
86500
3,56,500
65,000
1,66,150
73,780
2,50,320
Page 32
PROJECTED COST SHEET

PARTICULAR
Raw Material Consumed
Purchase
Less: Cl. Stock
Add:
Direct wages
Utilities
PRIME COST (A)
Factory Cost
Add:
Repairs
Managers Salary
Supervisors Salary
Watchmans Wage
Depreciation on Machines
Depreciation on Building
TOTAL FACTORY COST
(B)
Administrative Expenses
Add:
Accountants Salary
Clerks Salary
Postage and Telegram Exp.
Telephone Exp.
Mis. Expenses
Insurance Exp.
Medical Exp.
Professional Tax
Legal Exp.
Audit Fees
Depreciation on Computer
Depreciation on Other FA
Interest on Owned Capital
TOTAL
ADMINISTRATIVE
EXPENSES (C)
COST OF PRODUCTION
(A+B+C)
Add:
YEAR 1
YEAR 2
1,73,46,100
---
1,85,02,500
---
2,31,28,125
---
5,16,000
5,00,000
1,83,62,100
5,16,000
5,50,000
1,95,68,500
5,16,000
5,80,000
2,42,24,125
75,000
60,000
72,000
24,000
2,00,000
2,25,300
6,56,300
85,714
60,000
72,000
24,000
2,00,000
2,25,300
6,67,014
96,429
60,000
72,000
24,000
2,00,000
2,25,300
6,77,729
60,000
24,000
25,000
35,000
25,000
90,000
50,000
1,000
20,000
36,700
16,000
39,000
2,80,000
11,50,700
60,000
24,000
28,571
40,000
30,571
1,02,857
57,143
1,143
30,000
41,943
16,000
50,000
2,80,000
12,91,085
60,000
24,000
32,143
45,000
32,143
1,15,714
64,286
1,286
25,714
47,186
8,000
39,000
2,80,000
12,23,472
2,01,69,100
2,15,26,599
2,87,73,201
YEAR 3
Page 33
Op. stock of Finished Goods

Less:
Cl. Stock of Finished Goods
COST OF PRODUCTION
OF GOODS SOLD
-----
28,76,000
28,76,000
28,76,000
28,76,000
28,76,000
1,55,63,100
1,64,07,686
2,04,01,326
Selling and Distribution

Expenses
Add:
Salesmans Salary
Transportation exp.
Advertising exp.
Traveling exp.
COST OF SALES
60,000
45,000
75,000
50,000
1,57,93,100
60,000
57,143
91,429
57,143
1,66,73,401
60,000
64,286
1,02,857
64,286
2,06,92,755
SALES
1,73,46,100
1,85,02,500
2,31,28,125
15,53,000
18,29,099
24,35,370
PROFIT
PROJECTED TRADING ACCOUNT

YEAR 1
DR.
PARTICULARS
To Opening stock
To Purchase
To Direct Wages
To Utilities
To Gross Profit
TOTAL
AMT.
----60,00,000
6,15,600
5,00,000
PARTICULARS
By Sales
By Closing Stock
CR.
AMT.
1,73,46,100
27,00,000
61,36,000
2,00,46,100
TOTAL
2,00,46,100
Page 34
YEAR 2
DR.
PARTICULARS
To Opening stock
To Purchase
To Direct Wages
To Utilities
To Gross Profit
TOTAL
CR.
AMT.
27,00,000
90,00,000
5,16,000
5,50,000
PARTICULARS
By Sales
By Closing Stock
AMT.
1,85,02,500
27,00,000
40,22,000
2,12,02,500
TOTAL
2,12,02,500
YEAR 3
DR.
PARTICULARS
To Opening stock
To Purchase
To Direct Wages
To Utilities
To Gross Profit
TOTAL
AMT.
27,00,000
1,57,76,000
5,16,000
5,80,000
PARTICULARS
By Sales
By Closing Stock
CR.
AMT.
2,31,28,125
27,00,000
46,28,000
2,58,28,125
TOTAL
2,58,28,125
Page 35
PROJECTED PROFIT AND LOSS ACCOUNT

YEAR 1
DR.
PARTICULARS
To Repairs exp.
To Postage and Tele.
Exp.
To Telephone exp.
To Transportation
To Mis. Expenditure
To Advertising exp.
To Insurance
To Medical exp.
To Professional Tax
To Legal Exp.
To Audit Fees
To Traveling exp.
To Salaries to
employees
To Depreciation
To Int. on Borrowed
Capital
To Loan Installment
Paid
To Income Tax
AMT.
75,000
PARTICULARS
By Gross Profit
CR.
AMT.
61,36,000
25,000
35,000
50,000
25,000
80,000
90,000
50,000
1,000
20,000
36,700
50,000
3,00,000
4,80,300
5,94,000
5,40,000
10,55,200
To Net Profit
26,28,800
TOTAL
61,36,000
TOTAL
61,36,000
Page 36
YEAR 2
DR.
PARTICULARS
To Repairs exp.
Exp.
To Telephone exp.
To Transportation
To Mis. Expenditure
To Advertising exp.
To Insurance
To Medical exp.
To Professional Tax
To Legal Exp.
To Audit Fees
To Traveling exp.
To Salaries to
employees
To Depreciation
To Int. on Borrowed
Capital
To Loan Installment
Paid
To Income Tax
CR.
AMT.
85,714
PARTICULARS
By Gross Profit
AMT.
40,22,000
28,714
40,000
57,143
28,571
91,429
1,02,857
57,143
1,143
22,857
41,943
57,143
3,00,000
4,80,300
5,34,600
5,40,000
4,15,776
To Net Profit
11,36,810
TOTAL
40,22,000
TOTAL
40,22,000
Page 37
YEAR 3
DR.
PARTICULARS
To Repairs exp.
Exp.
To Telephone exp.
To Transportation
To Mis. Expenditure
To Advertising exp.
To Insurance
To Medical exp.
To Professional Tax
To Legal Exp.
To Audit Fees
To Traveling exp.
To Salaries to
employees
To Depreciation
To Int. on Borrowed
Capital
To Loan Installment
Paid
To Income Tax
AMT.
96,429
PARTICULARS
By Gross Profit
CR.
AMT.
46,28,000
32,143
45,000
64,286
32,143
1,02,857
1,15,714
64,286
1,286
25,714
47,186
64,286
3,00,000
4,72,300
4,75,200
5,40,000
5,94,751
To Net Profit
15,54,419
TOTAL
46,28,000
TOTAL
46,28,000
Page 38
PROJECTED BALANCE SHEET

LIABILITIES
CAPITAL
Owned Capital
YEAR 1
YEAR 2
YEAR 3
35,00,000
35,00,000
35,00,000
35,00,000
31,50,000
28,00,000
Pranav Trade Ltd

TISCO Ltd
Raj enterprise Ltd
Net Profit
3,72,616
5,51,425
-----26,28,800
8,72,613
----3,45,140
11,36,810
6,13,490
----10,12,514
15,54,419
TOTAL
81,86,841
90,04,563
94,80,423
ASSETS
YEAR 1
16,10,000
23,27,700
8,00,000
85,000
42,500
8,500
24,000
42,500
34,000
8,500
YEAR 2
16,10,000
21,02,400
6,00,000
70,000
35,000
7,000
8,000
35,000
28,000
7,000
YEAR 3
16,10,000
18,77,100
4,00,000
55,000
27,500
5,500
----27,500
22,000
5,500
Shreenathji Industries
21,16,032
ShreeKrishna Enterprise
20,15,620
Ram & Ram Pvt. Ltd.
9,58,528
Kkassuma
Pvt. Ltd management
3,62,568
S.K.SchoolEng.
of business
----10,214
10,56,713
8,01,406
3,59,321
10,12,121
12,54,612
-----
Cash at Bank
Cash in Hand
Closing Stock
31,26,892
7,90,500
27,00,000
51,86,400
10,51,430
27,00,000
50,45,619
11,49,150
27,00,000
1,70,50,841
1,53,14,563
1,56,00,423
SECURED LOAN
ICICI Bank Ltd
CREDITORS
Land
Building
Machinery
Furniture & Fixtures
Electric Installation
Telephone
Computer
Boundary, Walls ,Gates
Production Dyes
Troll and other eqp.
DEBTORS
TOTAL
Page 39
YEAR 1
QTY
AMT
Op. stock
Add:
Purchase
Less: Cl
stock
-----
-----
YEAR 2
QTY
AMT
YEAR 3
QTY
AMT
-----
-----
-----
------
8,67,305 1,73,46,10 9,25,12

-----0
5
---------
1,85,02,50
0
-----
9,25,1
25
-----
2,31,28,12
5
-----
PARTICULARS OF RAW MATERIAL CONSUMED
PARTICULARS OF FINISHED GOODS

Particulars
YEAR 1
QTY
AMT.
YEAR 2
QTY
AMT.
YEAR 3
QTY
AMT.
Page 40
Op .
balance
-----
-------
4,000 27,00,000
4,000
27,00,000
Add: good 1,44,000 9,72,00,000 1,60,000

manu.
1,80,000 1,80,000 12,15,00,000
Less:
Sales
1,80,000 1,80,000 12,15,00,000
1,40,000 9,45,00,000 1,60,000

4,000
27,00,000
4,000 27,00,000
4,000
27,00,000
Cl. Stock
SCHEDULE FOR WRITTEN DOWN VALUE OF FIXED ASSETS

PARTICULAR
Gross Block
Depreciation
Net Block
Page 41
Land
16,10,000
16,10,000
-----
-----
16,10,000
Building
22,53,000
22,53,000
-----
2,25,300
23,27,700
Machinery
10,00,000
10,00,000
-----
2,00,000
8,00,000
Furniture &
Fixture
1,00,000
1,00,000
-----
15,000
86,000
Electric
installation
charges
50,000
50,000
-----
7,500
42,500
Telephone
10,000
10,000
-----
1,500
8,500
Computer
40,000
40,000
-----
16,000
24,000
Boundary, wall
& gates
50,000
50,000
-----
7,500
42,500
Production
Dyes
40,000
40,000
-----
6,000
34,000
Trolley and
other eqp
10,000
10,000
-----
1,500
8,500
SCHEDULES FOR FACTORY OVERHEADS
Page 42
PARTICULARS
Repairs
Managers Salary
Supervisors Salary
Watchmans Salary
Depreciation on Machinery
Depreciation on Building
FACTORY COST
AMOUNT
75,000
60,000
72,000
24,000
2,00,000
2,25,300
6,56,300
SCHEDULES FOR AMINISTRATIVE OVERHEADS

PARTICULARS
Accountants Salary
Clerks Salary
Postage & Telegram Exp.
Telephone Exp.
Mis. Expenditures
Insurance Exp.
Medical Exp.
Professional Tax
Legal Exp.
Audit Fees
Depreciation on Computer
Depreciation on Other Fixed Asset
Interest on Owned Capital
TOTAL
AMOUNT
60,000
24,000
25,000
35,000
25,000
90,000
50,000
1,000
20,000
36,700
16,000
39,000
7,29,000
11,50,700
SCHEDULES FOR SELLING OVERHEADS

PARTICULAR
Salesmans Salary
Transportation Exp.
Advertising Exp.
Traveling Exp.
TOTAL
AMOUNT
60,000
50,000
80,000
50,000
2,40,000
Page 43
RISK FACTORS
RISK is the biggest threat which ever entrepreneur has to look upon very
seriously in order to safeguard the investment & there by earn profit.
As far as this is concerned, owing to the current situation, there have started
emerging some competitors which are proving to be threats for future. Therefore, it is
very important to notice the risk factors in the environment in which the business works.
It is again very important to notice the degree of competition in the existing market so as
to make planning for future.
This product as in the initial stage does not face high competition therefore the
Risk factor for competition & market share is reduced.
ADDRESS OF RAW MATERIAL SUPPLIERS
Page 44
1)
M/S. Vijay & co

Kaliwara koti
Surendranagar
Dt. Rajkot
2)
Shri D.T. balasania & co

Godamle station plot,
B/H. industrial Estate
Lal road,
Bharuch,
Gujrat
3)
Kalabadevi industrial estate

Nr. Kalbadevi High Road,
Mumbai
4)
S.G.Pillai & Pillai co. Ltd

Surakvarna Roa. Road
Nr.Clwai Nallah.
Block -603
Kerala,
ADDRESS OF MACHINERY SUPPLIERS

1)
Shri Guygon Forges Ltd.
Page 45
36112, Estate,
Moti Baug,
Delhi.
2)
M/s Shankar machine tools.ltd

36/18-court area,
OMNI bldg
near factory area
Surendranagar
3)
M/s Siddhi prakash Engg. Work Pvt.Ltd

Nr. Jagdish Tower,
Nautambai industrial Estate
Mumbai
CONCLUSION
This product, has such characteristics which build the
Page 46
the power to explore new market boundaries. Proper planning & management. Will
definitely up bring this product & hence will contribute at some or the other extent to the
saving of ir-reversible & exhausting resource.
Page 47

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A

Juhi Patel (33)

S.K SCHOOL OF BUSINESS MANAGEMENT

(HEMCHANDRACHARYA NORTH GUJARAT UNIVERSITY)

S.K.School of business management

Being a student of M.B.A., I am extremely happy to submit this project

S.K.School of business management

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

S.K.School of business management

Production Capacity Schedule

Staff and Labour Details

Total Working Capital Requirement

S.K.School of business management

Total Project Fund

Interest on Borrowed Capital

Annual Cost of Production

Break Even Analysis

Projected Operating Statement

Projected Cost Sheet

Projected Balance Sheet

Particulars of Raw Material Consumed

Particulars of Finished Goods

Schedule for Fixed Assets

Schedule for Factory Overhead

S.K.School of business management

Schedule for Selling and

Name and Address of Raw Material Suppliers

Name and Address of Machineries Supplier

Disclosure of Significant Accounting Policy

According to the industrial policy paper of 1956, SSI ensure more

:- KAPIL l petrol saver

S.K.School of business management

Locaton of the unit

:- GIDC industrial area Shaper industrial area , UNJA

S.K.School of business management

3). Water :S.K.School of business management

S.K.School of business management

1) Availability of infrastructural facilities

Does not mix in water

Evaporates on temperature 63 degree calcious -75 degree

S.K.School of business management

This product is a complementary product therefore its use depends

The business is becoming more & more competitive everyday. We

S.K.School of business management

RAW MATERIAL DETAILS

S.K.School of business management

S.K.School of business management

S.K.School of business management

S.K.School of business management

STAFF & LABOUR DETAILS

S.K.School of business management

PLANT & MACHINERY

OTHER FIXED ASSET

TOTAL FIXED ASSETS

S.K.School of business management

STAFF & LABOUR SALARY

S.K.School of business management

TOTAL WORKING CAPITAL