product project report on rasam powder

PPR ONESPECIERO RASAM POWDER

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A

PRODUCT PROJECT REPORT ON

ESPECIERO RASAM POWDER

Prepared by

Name : Reena John

Roll no : 91

Seat no : -

Class : B.B.A sem-v

Academic year: 2014-15

College

Matushri Virbaima Mahila College of COMMERCE MANAGEMENT AND I.T.

Guided by

Prof. Dharti Nathwani

Prof. Kalpesh Radiya

Submitted to

Saurashtra University

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DECLARATION

I undersigned REENA JOHN student of B.B.A SEM- V hereby declare that the project report is my own work and has been carried out under the guidance and supervision of prof. Dharti Nathwani and prof. Kalpesh Radiya of MVM COLLEGE OF COMMERCE, MANAGEMENT AND I.T., RAJKOT affiliated to Saurashtra University.

This work has not been previously submitted to any other university for any other examination.

Date: Signature

Place:

Reena John

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PREFACE

BBA is course in which practical aspect is an important as theoretical aspect. The growth of economy is depends upon skilled managers and BBA course fulfils this need the practical studies give an idea to the student about problem they have to face in future of their managerial life.

The contribution of small scale industries is 40% in the economic growth rate of the country. So, it is essential to understand management and working of small scale industries as a student of management. Small scale business has been included to create and development entrepreneur skill among the student. It is highly essential as a student of management to understand management of SSI in MBA The subject entrepreneurship and management of small business are included to give student the practical knowledge of the student. Thus we can get clear picture that how to manage small scale business and how to avoid difficulties in the way. So, I am presenting Business plan on “Especiero Rasam Powder”

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ACKNOWLEDGEMENT

To complete this project many persons have helped me. I am thankful to all who have helped me to complete this report.

Very first, I thank to Saurashtra University to give me such an opportunity.

Secondly, I would like to thank my college MATUSHRI VIRBAIMA MAHILA COLLEGE OF COMMERCE MANAGEMENT AND I.T. to give this opportunity to appear such a wonderful project report on Rasam powder.

My most thank to director MRS. BINA .S .DAVE for giving me permission and providing me each and every necessary information.

Heartily thanks to our PROF. DHARTI NATHWANI and PROF. KALPESH RADIYA to guide us in proper way and in such a manner, that we have not felt any difficulty during project.

Last but not least my god my parents and my friends without their motivation, I could not able to prepare this project in well format way.

Date: Signature

Place:

Reena John

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General index

No. Particular Pg no. 1. General aspects 2. Technical aspects 3. Market aspects 4. Financial aspects 5. Risk factors 6. Swot analysis 7. Future plans 8. Conclusions 9. References

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GENERAL ASPECTS

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General aspects

No. Particular Pg no.

1. Introduction to SSI 2. Introduction to PPR 3. Project at glance 4. Promoters background 5. Justification of location 6. Organization chart 7. Vision , mission of the company 8. Basis and presumption 9. Implementation schedule

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Introduction to SSI

Since the time of independence, the small-scale sector in India has been a major contributor to country’s Gross Domestic Product (GDP). This traditional sector in India is considered to have huge growth prospect with its wide range of products. With 40 percent share in total industrial output and 35 percent share in exports, the small-scale industrial sector in India is acting as Engine of Growth in the new millennium.

Small sector units are those engaged in the manufacture, processing or preservation of goods and whose investment in plant and machinery (original cost) does not exceed Rs. 3 Crore. These would, inter alia, include units engaged in mining or quarrying, servicing and repairing of machinery. In the case of ancillary units, the investment in plant and machinery (original cost) should also not exceed Rs. 1 Crore to be classified under small-scale industry.

Small businesses are normally privately owned corporations, partnerships, or sole proprietorships. In addition to number of employees, other methods used to classify small companies include annual sales (turnover), value of assets and net profit (balance sheet), alone or in a mixed definition.

The details of the items reserved for SSIs are given below:

Food and allied industries (9) Wood and wood products (9) Paper products (19) Plastic products (53) Chemicals and chemical products (7) Natural essential oils (2) Organic chemicals, drugs and drug intermediates (33) Other chemicals and chemical products (67) Glass and ceramics (27) Mechanical engineering excluding transport equipment (137) Electrical machines, appliances & apparatus (17) Electronic equipments and components (1) Transport equipment boats and truck body building (3) Auto parts components and ancillaries and garage equipments (36) Bicycle parts, tricycles and perambulators (41) Miscellaneous transport equipment (4) Sports goods (7) Stationery items (13) Others (21)

Small Scale Industries contribute 40% of gross industrial value & provide foreign exchange. Small industries are second largest employer in India as it has large capacity to absorb man power. Small Scale industries lead to balanced regional balance.

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Introduction to PPR

Rasam is a soup dish especially prepared in South Indian cuisine. It is usually very tangy in taste and quite fluid kind of soup. The sourness if the specialty of the dish that is added with the help of the various ingredients included in a specified proportion. Rasam recipe is popular all over the South India with various regional ingredients. The basic recipe as well as variations is also quite popular all over the world where South Indian population is existing. Though Rasam is a south Indian soup, it is mainly popular in Tamil Nadu, whereas in other places it is prepared with different names such as ‘saaru and ‘chaaru’. Tomato rasam, lemon as well as parupu rasam are some of the popular recipes around the world.

Rasam is essentially prepared by boiling method. All the ingredients including tamarind, tomato puree, lentils and spices are boiled together to make a very thin soup. The rasam powder can be prepared with dried spices and stored in an air-tight jar for anytime use. The tomatoes can either be used in puree form or in chopped pieces. The ginger is also added in chopped form along with tamarind. The pineapple rasam is prepared with small pieces of fresh tamarind. While making rasam with toor dal, the dal should be soaked in water along with spices and coconut. The ingredients are then grinded to a coarse paste before boiling.

Rasam is served as an appetizer in South Indian cuisine. Though it is different from sambar, but it is often served with rice just like sambar. In traditional South Indian meal, rasam follows the sambar course and followed by the meal with curd rice. Rasam is a quite healthy dish. The ingredients included in the dish are beneficial due to the presence of vitamins and minerals. Lentils are rich in proteins where lemon and tomatoes are rich in calcium and vitamin C. Tamarind is a good laxative and also helpful in lowering the cholesterol.

Rich flavor and great taste of these products make these one of the most favored selections of clients. These products are widely used by various numbers of clients owing to its purity and safe usage. Manufacturer, manufacture these products using top quality spices which are sourced from certified vendors. Besides, these can be availed in various sized packaging as per the requirements of clients.

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Spices from India are going places, with exports on course to top $3 billion by 2016-17.

Led by creative marketing strategies to ensure high brand recall, spice majors are competing with their domestic counterparts through continuous innovations in packaging, strength in quality and a strong distribution network.

Several local companies have also made their presence felt in the international market, by following a dual branding strategy to cater to the Indian Diaspora in the global market.

Indian brands bought out by international spice majors, such as MTR, have also been straddling both strata.

Sanjay Sharma, CEO, MTR Foods, told Business Line, “MTR leads the spices market in Karnataka and AP. We also export these products across many countries, and our popular products are sambar powder, rasam powder and puliogare, amongst others.”

The Indian spices market is pegged at 40,000 crores annually, of which the branded segment makes up 15 per cent.

According to Technopak, the branded space is dominated by national brands such as Catch, Everest, Ramdev, among others.

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Project at glance

Name of the unit Especiero Rasam powder Tag line Every house wife’s choice Name of promoters Reena JohnCommunication address

‘Om’ 9 Geeta nagar,Mavdi road,Rajkot

Registration office address

‘Om’ 9 Geeta nagar,Mavdi road,Rajkot

Telephone no. 0281-6533312Fax no. 0281-3332259Form of the organization

Sole-proprietorship

Size of the unit Small Scale Industry Brand name Especiero Usage of product Adding taste to food SSI registration no. Applied for same Number of the employees

28

Investment 1,19,48,500 Day off Wednesday Sources of finance 25% borrowed loan – 29,87,125

75% owned capital - 89,61,375Investment in working capital

15,88,500

Investment in fixed capital

1,03,60,000

Relation with banks ICICI and HDFC bank Company’s logo

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Promoter’s Background

Name Reena JohnAge 26Address 12,Sai Flat,

Yagnik road,Rajkot

Education qualification M.B.A (marketing )Experience 2 years in GANDHI SPICES Nature of responsibility Marketing department Contribution to unit 30 %

Justification of location MVMC, RAJKOT|

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Justification of location is where you're planning to put your business. At the same time you have to think about the surrounding of the place. If it is worth starting up a business in that location. Following are the factors affecting location

1. Availability of market : Market plays an important role in the selection of location. Market should be near to the industry so; the immediate sale of product is possible. It also help in reduction of cost by reducing storing of finished goods, avoid the cost of transportation etc.

2. Availability of labor :Without manpower no one can start his or her industry. You have a machine but no manpower; you cannot start your industry. So, labor should be available at cheap rate.

3. Availability of transport : It is required for assembling of raw material and distribution of finished product. So, all type of transportation facility should be available.

4. Availability of power and water : Power and water is pre-requirement of an industry. So, the facility of power and water must be sufficient available.

Organization chart

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BOARD OF DIRECTORS

MANAGING EXECUTIVE

MARKETING DEPARTMENT

PRODUCTION DEPARTMENT

FINANCIAL DEPARTMENT

PERSONNEL DEPARTMENT

HEAD OF THE DEPARTMENT




SALES EXECUTIVE

SUPERVISOR

AREA SALESMAN

EMPLOYEE

WORKERS AUDITORS

ACCOUNTANTS

EMPLOYEES


Vision and mission

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Vision

To create an outstanding value for customers To render great service To develop as a great company To provide world class products to the customers

Mission The mission of Especiero Rasam powder is to achieve the total customer satisfaction by safely supplying the highest quality products & rendering the effectual services possible at the earliest appropriate time.

Basis and presumption

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The profile is drawn in the basis of following presumption

Working hours per day 20 hrsWorking day 300 days Total no. of working hours 6000hours Working efficiency 80%Labor charges As per wage rate Rate of interest in fixed and working capital 16%Operative period of the project 12 years

Value of machinery and equipments is estimated on the basis of prevailing cost of market.

Implementation schedule

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Project implementation will take a period of 10 months from the date of approved of the scheme break up of activities with relative time for each activity is show below

Preparation of project report 1 monthRegistration of SSI 9 days Financial arrangement 1 month Purchase of raw-material 15 days Installment of machinery 1 month Electrician 1 week Recruitment of staff 15 days TOTAL 4 month and 25 days

I can start my business with maximum time period of 4 to 5 months.

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Technical aspect

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Technical aspects

No. Particulars Pg no. 1. Plant layout 2. Raw material 3. Machinery and equipment4. Suppliers of raw material and

machinery 5. Flow chart of production process 6. Production process 7. Production capacity 8. Pollution control and energy

conservation 9. Quality control and standard 10. Wastage management

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Plant layout

Plant Layout is the physical arrangement of equipment and facilities within a Plant. Optimizing the Layout of a Plant can improve productivity, safety and quality of Products. Un-necessary efforts of materials handling can be avoided when the Plant Layout is optimized.

• Plant layout techniques apply to the case where several physical means have to be located in a certain area, either industrial processes or services.• The basic objective is to ensure a smooth flow of work, material, people and information. • There are probably two levels at which layouts are required. In one, the various departments have to be sited, and in other the items of equipment within a department need to be located.

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GATE

R O A D

G

A

R

D

E

N

G

A

R

D

E

N

MACHINERY AND

PRODUCTION

ROOM

POWER

STATION

GATE

O

F

F

I

C

ERAW MATERIAL

ROOM


There are 4 types of layout 1. Process2. Product3. Hybrid4. Fixed position

Especiero Rasam Powder follows the process layout.

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Raw material

A material or substance used in the primary production or manufacturing of a good. Raw materials are often natural resources such as oil, iron and wood. Before being used in the manufacturing process raw materials often are altered to be used in different processes. Raw materials are often referred to as commodities, which are bought and sold on commodities exchanges around the world.

Following are the material used by BHADRA RASAM POWDERS:

1. Dry chili powder 2. Cumin powder3. Black pepper4. Asafetida

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Machinery and equipments

Following are the machines and equipments used in BHADRA RASAM POWDERS

Micro pulverizer Multi weighing scale Plastic bag sealingForm fill seal machine Hot air drier cabinet, electrically operated with temperature control device

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Suppliers of raw material and machinery

Address of Machines and Equipment Suppliers:

1. Rajesh shah , 101/a kothi compound

Dana pith -6

2. Nilesh Sharma ,36-b shanti colony

Dana pith-7

Address of raw material Suppliers:

3. Manoj vikram

32-d, aji industry

4. Dhananjay Sharma

Tirth Street, aji industry

5. Dhanji Rathod

Laxmi Vadi, Gidc industry.

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Flow chart of production process

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GRINDING

CLEANING

DRYING

finished goods

packaging

quality testing


Production process

Mechanical or chemical steps used to create an object, usually repeated to create multiple units of the same item. Generally involves the use of raw materials, machinery and manpower to create a product.

Process of Especiero Rasam powder is:

1. Cleaning and Removing stalks and seeds:

Chilly, asafetida , cumin seeds are purchased in bulk, from outside area, so it

needs cleaning. First of all, the chilly is to be cleaned and all the dust & dirt is to

be removed from the rest of the seeds.

2. Roasting:

Heat a griddle and cook each one ingredient separately for few minutes.

3. Grinding:

Grind them all together in an electric grinder, and then press through a sieve.

4. Packing:

This is the final operation of our product and that is packing. In this, the Rasam Masala is packed either in some plastic.

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Production capacity

The total production capacity of the company is 48000units per annum. But on the 1st year the production capacities at 75% will be use so as to go with the market. Following will give the total idea of the production capacity of the unit.

Year Production No. of units 1 75% 20,0002 85% 30,0003 94% 40,000

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Pollution control and energy conservation

Modern technologies for water pollution control, water recycle & product recovery air pollution control, environmental management system (EMS), surface active agents and contamination of water, physical methods for the treatment of organic acid bearing wastes, realities of waste cyanide treatment in India, biological treatment of aqueous wastes, plastics and generated wastes, alginate industry waste a source of biogas, acid charred waste as a resource material for highly active adsorbent.

The project does not create any noise or water pollution. So for as our

pollution is concerned, the latest shuttle kilns and exhaust fan are settled.

Our unit has applied for certificate of (SPCB) state pollution control board, as

our unit having the all standards to get this certificate our unit will not find

problem in getting this certificate.

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Quality control and standards

Quality control, or QC for short, is a process by which entities review the quality of all factors involved in production.

Quality control emphasizes testing of products to uncover defects and reporting to management who make the decision to allow or deny product release, whereas quality assurance attempts to improve and stabilize production (and associated processes) to avoid, or at least minimize, issues which led to the defect(s) in the first place.[citation needed] For contract work, particularly work awarded by government agencies, quality control issues are among the top reasons for not renewing a contract.

Black pepper IS:1778:1982Chili powder IS:2445:1984Cumin powder IS:2444:1980Asafetida IS:1909:1961Method of sampling and test of spices IS:1797:1973Technique for spices and condiments IS:1877:1973Method of test for spices IS:1797:1985

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Wastage management

The collection, transportation, and disposal of garbage, sewage, and other waste products. Waste management encompasses management of all processes and resources for proper handling of waste materials, from maintenance of waste transport trucks and dumping facilities to compliance with health codes and environmental regulations.

Wastages such bad spice seed are collected in distromed and then it’s dumped out of the city.

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Market aspects

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Market aspect

No. Particular Pg no. 1. Market potential 2. Market segmentation 3. Promotional efforts 4. Pricing policy 5. Distribution channel 6. Competitors

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Market potential

Domestic market for spice powders / masala powders (blend of various spices) is growing at a fast rate. A major quantity of production of spice powder originates either in the home scale or cottage level units and is distributed all over the country. It is estimated that there are about 1500 such units in the country. According to available information there are about 20-25 large companies producing packed spices are also engaged in exports. There are very few companies who have attained national market for their products. In majority of the units 50% of the product mix is contributed by coriander, chilly and turmeric powders.

India exports substantial quantity of spices and spice products. The demand for any type of masala is directly related to the taste and preferences of consumers in the country. However, users go in for various types of masala. The preference to use masala is quite high because of its inheritance advertisement as stated above. Even existing users have been increasing by switching over to the masala.

At present there are about to 70 to 80 small or big units engaged in the manufacturing of the masala with an average capacity of 20,000 to 30,000 p.m. No food is tasty without spice. We contribute more than 45% in market.

This product is easily acceptable by market because now a day’s all the customer want something spicy which add taste to their food.

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Market segmentation

Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers, who have common needs and priorities, and then designing and implementing strategies to target them. Market segmentation strategies may be used to identify the target customers, and provide supporting data for positioning to achieve a marketing plan objective. Businesses may develop product differentiation strategies, or an undifferentiated approach, involving specific products or product lines depending on the specific demand and attributes of the target segment.

Main bases of segmentation are:

1. Geographical bases2. Demographical bases3. Psychographic bases 4. Behavioral bases

Especiero segment on the bases of geographical.

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Promotional efforts

Basically promotion is a attempt to influence and most specifically promotion is an element in an organization. Marketing mix that serves to inform persuade and remind the marketing of the product and the organization selling it in hopes of influencing the recipient feeling, belief or behavior.

There are five forms of promotions…….

Personal selling

Advertisement

Sales promotion

Publicity and public relation

Personal selling

ESPECIERO Rasam Masala has advertised their product in “GUJRAT SAMACHAR” news paper.

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Pricing policy

Method adopted by a firm to set its selling price. It usually depends on the firm's average costs, and on the customer's perceived value of the product in comparison to his or her perceived value of the competing products. Different pricing methods place varying degree of emphasis on selection, estimation, and evaluation of costs, comparative analysis, and market situation. See also pricing strategy.

There are 4 type of pricing

1. Mark-up pricing2. Target return pricing3. Value base pricing 4. Going rate pricing

Especiero have adopted going-rate pricing policy.

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Distribution channel

Product distribution (or place) is one of the four elements of the marketing mix. Distribution is the process of making a product or service available for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries.

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manufacturer

distributo

r

retailer


Competitors

Competitor analysis is an essential component of corporate strategy. It is argued that most firms do not conduct this type of analysis systematically enough. Instead, many enterprises operate on what is called “informal impressions, conjectures, and intuition gained through the tidbits of information about competitors every manager continually receives.” As a result, traditional environmental scanning places many firms at risk of dangerous competitive blind spots due to a lack of robust competitor analysis.

Our competitors are

1. Eastern Rasam powder

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2. Nirapara Rasam powder

3. Aachi Rasam powder (Tamil nadu )

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FINANCIAL FACTORS

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Financial aspects

No. Particular Pg no. A. Total fixed assets B. Total working capital C. Total investment D. Sources of capital E. Loan repayment schedule F. Depreciation on fixed assets G. Production and sales of finished goods (in units)H. Stock of raw material

I. Total fixed cost J. Total variable cost K. Total cost L. Breakeven point (in units)M. Breakeven point (in rs)N. Table of sales O. Table of fixed cost P. Table of variable cost Q. Trading a/c (for 3 years)R. Profit and loss a/c (for 3 year)S. Balance sheet (for 3 year )T. Cost sheetU. Statement of profitability

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A.Total fixed assets (A-1) Land and building

Particulars Amount rs.1 Land 80,00,0002 Land developing and fencing 2,00,0003 Factory building 3,40,0004 Office buildin0g 2,00,0005 Storage house 80,0006 Bore well 50,0007 Water tank 20,0008 Main gate 50,0009 Watchman’s cabin 30,00010 Lavatories 30,000

90,00,000 Total (A-1)

(A-2) Plant and machinery

Name Of Machinery Amount Rs.Grinder machine 2,00,000Cleaning 2,50,000Form fill seal machine 1,50,000

Total (A-2) 6,00,000

(A-3) Preliminary expenses

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Particulars Amount rs.1 Consultancy fees 50,0002 Project report preparation fees 40,0003 Legal expenses of company formation 50,0004 Interest during construction period 60,000

Total (a-2) 2,00,000

(A-4)Furniture

Particulars Quantity Rate per unit Rs.

Amount rs.

1 Ordinary tables 10 1,000 10,0002 Computer tables 5 1,000 5,0003 Chairs 50 1,00 5,0004 Sofa sets 2 12,500 25,0005 Fans 30 4,00 12,0006 Lights 20 2,00 4,0007 Doors 10 1,000 10,0008 Windows 20 5,00 10,0009 CCTV cameras 6 1,500 9,00010 Air-conditioners 2 30,000 60,00011 Refrigerators 2 10,000 20,00012 Delivery van 3 1,00,000 3,00,00013 computers 5 20,000 1,00,000

Total (A-4) 5,60,000

Total fixed assets MVMC, RAJKOT|

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Particulars Amount rs.1 Land and building 90,00,0002 Plant and machinery 6,00,0003 Preliminary expenses 2,00,0004 Furniture 5,60,000

1,03,60,000 Total

B.Total working capital (B-1)Raw material (MONTHLY ) :

No. Raw material Qty (kg) Rate per kg Amount

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Spices 50 200 10,000

1,20,000

(B-2) Salary and wages

Particulars Number of person

Amount per month rs.

Total amount rs.

1. General manager 2 20,000 40,000

2. Factory manager 3 12,000 36,000

3. Export manager 1 10,000 10,000

4. Supervisors 2 8,000 16,000

5. Clerk-cum cashier 5 5,000 25,000

6. Helpers 2 4,000 8,000

7. Foremen 1 5,000 5,000

8. Sweeper 2 3,000 6,000

9. Computer operator 5 3,000 15,000

10. Mechanic 3 2,000 6,000

11. Salesman 1 3,000 3,000

12. Storekeeper 1 2000 200013. Peon 2 2500 5000

14. Lab technician 1 2500 2500

Total (B-2) 1,79,500 21,54,000

(B-3) Utilities

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Particulars Amount per month rs. 1. Power 50,0002. Fuel 20,0003. Water 10,0004. Oil and grease 10,000

70,000 Total (B-4) 8,40,000

(B-4) Other expenses

Particulars Amount per month rs.

1. Postage and stationery 2,000

2. Telephone charges 3,000

3. Transport charges 50,000

4. Advertisement expenses 50,000

5. Insurance 20,000

6. Repairs and maintenance 5,000

7. Selling expenses 20,000

8. Other sundry expenses 10,000

1,60,000 Total (B-4) 19,20,000

Total working capital per month MVMC, RAJKOT|

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Particulars Amount per month rs.

1. Raw materials 1,20,0002. Salary and wages 1,79,5003. Utilities 70,0004. Other expenses 1,60,000

Total working capital per month 5,29,500 * 3 months

Total working capital for 3 months 15,88,500

C.Total investment

Particulars Amount rs. 1. Total fixed assets 1,03,60,0002. Total working capital 15,88,500

Total investments 1,19,48,500

D.Sources of capital

total investment

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owned capital borrowed capital

(75%) (25%)

89,61,375 29,87,125

1,19,48,500

Particulars Amount rs. 1. Owned capital (75%) 89,61,3752. Borrowed capital (25%) 29,87,125

Total capital 1,19,48,500

E.Loan repayment schedule

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Year Opening balance Interest @ 12% Closing balance

1. 1,19,48,500 14,33,820 1,07,53,6502. 1,07,53,650 12,90,438 95,58,8003. 95,58,800 11,47,056 83,63,9504. 83,63,950 10,03,674 71,69,1005. 71,69,100 8,60,292 59,74,2506. 59,74,250 7,16,910 47,79,4007. 47,79,400 5,73,528 35,84,5508 35,84,550 4,30,146 23,89,7009. 23,89,700 2,86,764 11,94,85010. 11,94,850 1,43,382 ------

F. Depreciation on fixed assets

Name of the asset Rate of depreciation 1. Land and building 10%2. Plant and machinery 15%3. Furniture (excluding computers) 10%4. Computers 60%

Table of depreciation for 3 years YEAR-1

No Asset Opening balance rs.

Depreciation rs.

Closing balance rs.

1. Land and building 90,00,000 9,00,000 81,00,0002. Plant and machinery 6,00,000 90,000 51,00,0003. Furniture 4,60,000 46,000 4,14,0004. computers 1,00,000 60,000 40,000

YEAR – 2


Depreciation rs.

Closing balance rs.

1. Land and building 81,00,000 8,10,000 72,90,0002. Plant and machinery 51,00,000 7,65,000 43,35,000

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3. Furniture 4,14,000 41,400 3,72,6004. computers 40,000 24,000 16,000

YEAR – 3


Depreciation rs.

Closing balance rs.

1. Land and building 72,90,000 7,29,000 65,61,0002. Plant and machinery 43,35,000 6,50,250 36,84,7503. Furniture 3,72,600 37,260 3,35,3404. Computers 16,000 9600 6400

G. Estimated production and sales ( IN UNITS )

Year Opening stock

Production Sales Closing stock

1. ----- 20,000 18,000 2,0002. 2,000 30,000 28,800 3,2003. 3,200 40,000 38,880 4,320

H. Stock of Raw Material ( IN UNITS)

Particulars Year 1 Year 2 Year 3

Opening stock ----- 5,000 10,000

Add: purchases 25,000 35,000 45,000 Less: consumption 25,000 30,000 40,000

= closing stock 5,000 10,000 15,000

I. Total Fixed Expenses MVMC, RAJKOT|

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No. Particulars Amount rs. 1. Salary and wages (60%) 12,92,4002. Utilities (50%) 4,20,0003. Other expenses (70%) 13,44,000

Total 30,56,400

1. Fixed cost per unit = Total Fixed Cost Production at 100% capacity = 30,56,000 40,000 = 76.4 per unit

J. Total variable cost

No. Particulars Amount rs. 1. Raw materials (100%) 1,20,0002. Salary and wages (40%) 8,61,600

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3. Utilities (50%) 4,20,0004. Other expenses (30%) 5,76,000

Total 19,77,600

2. Variable cost per unit = total variable cost Production at 100% capacity = 19, 77,600 40,000

= 49.44

K. Total cost

Total cost = total fixed cost + total variable cost

= 30,56,400 + 19,77,600 = 50,34,000

Total cost per unit = total cost

Production at 100% capacity = 50,34,000 40,000 = 125.85

L. Break-even point ( in units )

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BEP (in units) = total fixed expenses S – V = 30,56,400 40 – 49.44 = 30,56,400 9.44 = 3,23,771

M. Break-even points ( in rs. )

BEP (in rs.) = BEP in units * selling price per unit rs. = 3,23,771*40 = 1,29,58,840

N. Table of sales

Year Production capacity

Sales(in units) Selling units

Total Rs.

1. 50% 18,000 300 54,00,0002. 75% 28,800 300 86,40,0003. 100% 38,880 300 1,16,64,000

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O. Table of fixed expenses

No. Particulars Year 1 (50%)

Year 2 (75%)

Year 3 (100%)

1. Salary and wages (60%)

6,46,200 9,69,300 12,92,400

2. Utilities (50%) 2,10,000 3,15,000 4,20,0003. Other expenses (70%) 6,72,000 10,08,000 13,44,000

Total 15,28,200 22,92,300 30,56,400

P. Table of variable expenses

No. Particular Year 1 (50%)

Year 2 (75%)

Year 3 (100%)

1. Raw material (100%) 60,000 90,000 1,20,000

2. Salary – wages (40%) 4,30,800 6,46,200 8,61,600

3. Utilities (50%) 2,10,000 3,15,000 4,20,000

4. Other expenses (30%) 2,88,000 4,32,000 5,76,000

Total 9,88,000 14,83,200 19,77,600

Q. FINAL A/CS (FOR 3 YEAR )

Year - 1

Trading a/c of 1st year

Dr. Cr.

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Particular Amt (rs) Particular Amt (rs)opening stock Sales Raw material -- Cash (40%) 2,88,000Finished goods -- Credit (60%) 4,32,000 54,00,000Purchase of raw material

60,000

Salary /wages 4,30,800 Closing stockUtilities 2,10,000 Raw material 10,00,000

Finished goods8,00,000 18,00,000Gross profit 64,99,200Total 72,00,000 Total 72,00,000

Profit and loss a/c of 1st year

Dr Cr

Particular Amt (Rs.) Particular Amt (rs.)Salary/wages 6,46,200 Gross profit 64,99,200Utilities 2,10,000

Other expensest- o – 6,72,000

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t- p – 2,88,000 9,60,000

Depreciation Land and building 9,00,000Plant and machinery 90,000Furniture 46,000Computer 60,000Provision for tax 4,78,649Interest on bank loan 14,33,820 Interest in capital 5,37,683Preliminary expense 20,000

Net profit 11,16,848

Total 64,99,200 Total 64,99,200

Balance sheet of 1st year

Liabilities Amt (rs.) Assets Amt (rs.)Owned capital 89,61,375 Land and building Add: i.o.c 5,37,683 Opening balance 90,00,000Add: net profit 11,16,848 Less: depri 9.00,000 81,00,000= closing stock

1,06,15,906Plant and machinery

12% bank loan 1,19,48,500 Opening bal 6,00,000o/s interest on loan 1,07,53,650 Less: depri 90,000 51,00,000

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Creditors 60,000b/p - 36,000 24,000 Furniture Provision for tax 4,78,649 Opening bal 4,60,000Bank o/d 52,63,457 Less: depri 46,000 4,14,000

Computer Opening bal 1,00,000Less: depri 60,000 40,000

Debtors 2,59,200 b/r - 51,840 2,07,360

Preliminary exp 2,00,000Less: W/O 20,000 1,80,000

Total 3,38,20,705

Total 3,38,20,705

Year -2

Trading a/c of 2nd year

Dr. Cr.

Particular Amt (rs) Particular Amt (rs)opening stock Sales

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Raw material 10,00,000

Cash (40%) 34,56,000

Finished goods 8,00,000

18,00,000 Credit (60%) 51,84,000 86,40,000

Purchase of raw material

90,000


Finished goods 12,00,000 32,00,000Gross profit 89,88,800 Total 1,18,40,000 Total

1,18,40,000

Profit and loss a/c for 2nd year

Dr. Cr.

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Particular Amt (Rs.) Particular Amt (rs.)Salary/wages 9,69,300 Gross profit 89,88,800Utilities 3,15,000

Other expenses

T -o 10,08,000

T -p 4,32,000 14,40,000

Depreciation

Land and building 8,10,000Plant and machinery

7,65,000

Furniture 41,400Computer 24,000Provision for tax 4,47,504Interest on bank loan

12,90,438

Interest on capital 5,37,683Preliminary expenses

20,000

Net profit 23,28,475Total 89,88,800 Total 89,88,800

Balance sheet 2nd year

Liabilities Amt (rs.) Assets Amt (rs.)Owned capital 1,06,15,906 Land and building Add: i.o.c 5,37,683 Opening balance 81,00,000Add: net profit 89,88,800 Less: depri 8,10,000 72,90,000= closing stock

2,01,42,389Plant and machinery

12% bank loan 95,58,800 Opening bal 51,00,000

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o/s interest on loan 83,63,950 Less: depri 7,65,000 43,35,000Creditors 90,000

b/p -54,000 36,000 Furniture Provision for tax 4,47,504 Opening bal 4,14,000

Less: depri 41,400 3,72,600

Computer Opening bal 40,000 Less: depri 24,000 16,000

Debtors 31,10,400b/r - 6,22,080 24,88,320Preliminary exp 2,00,000Less: W/O 20,000 1,80,000Cash in hand 2,38,66,723

Total 3,85,48,643

Total 1,46,81,920

Year -3

Trading a/c for 3rd year

Dr. cr.

Particular Amt (rs) Particular Amt (rs)opening stock Sales Raw material 20,00,000 Cash (40%) 46,65,600Finished goods12,00,000 32,00,000 Credit (60%) 69,98,400 1,16,64,000Purchase of raw material 1,20,000

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Finished goods 16,00,000 61,00,000Gross profit 1,31,63,000Total 1,77,64,000 Total 1,77,64,000

Profit and loss a/c for 3rd year

Dr. cr.

Particular Amt (Rs.) Particular Amt (rs.)Salary/wages 12,92,400 Gross profit 1,31,63,000Utilities 4,20,000

Other expensestable – o 13,44,000Table – p 5,76,000

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Depreciation Land and building 7,29,000Plant and machinery

6,50,250

Furniture 37,260Computer 9600Provision for tax 19,19,925Interest on bank loan

11,47,056

Interest on capital 5,37,683Preliminary expenses

20,000

Net profit 44,79,826

Total 1,31,63,000 Total 1,31,63,000

Balance sheet for 3rd year

Liabilities Amt (rs.) Assets Amt (rs.)Owned capital 2,01,42,389 Land and building Add: i.o.c 5,37,683 Opening balance 72,90,000Add: net profit 44,79,826 Less: depri 7,29,000 65,61,000= closing stock 2,51,59,898

Plant and machinery 12% bank loan 95,58,800 Opening bal 43,35,000o/s interest on loan 83,63,950 Less: depri 6,50,250 36,84,750

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Creditors 72,000b/p - 14,400 57,600 Furniture Provision for tax 19,19,925 Opening bal 3,72,600 Less: depri 37,260 3,35,340

Computer Opening bal 16,000Less: depri 9,600 7,000

Debtors 41,69,040b/r - 8,33,808 33,35,232Preliminary exp 2,00,000Less: W/O - 20,000 1,80,000

Cash in hand 3,09,56,851 Total 4,50,60,173 Total 4,50,60,173

Cost sheet

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Statement of profitability

Particular Year 1 Year 2 Year 3Sales 54,00,000 86,40,000 1,31,63,000

-Variable expenses 9,88,000 14,83,200 19,77,600Contribution 44,12,000 71,56,800 1,11,85,400

-Fixed Expenses 15,28,200 22,92,300 30,56,400EBDIT 29,83,800 48,64,500 81,29,000

-Depreciation 9,00,000 8,10,000 7,29,000EBIT 20,83,800 40,54,500 74,00,000

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Particular Year-1 Year-2 Year-3Opening stock of raw material

--- 10,00,000 20,00,000

Add: purchase of raw material

60,000 90,000 1,20,000

= 60,000 10,90,000 21,20,000Less: closing stock 18,00,000 32,00,000 61,00,000= consumption of raw material

-17,40,000 -21,10,000 - 39,80,000

Add: salary and wages 4,30,800 6,46,200 12,92,400Add: utilities 2,10,000 3,15,000 4,20,000= prime cost -10,99,200 -11,48,800 -22,67,600Add: utilities 2,10,000 3,15,000 4,20,000= factory cost - 8,89,200 -8,33,800 -18,47,600Add: salary and wages 6,46,200 9,69,300 12,92,400Add: other expenses 6,72,000 10,08,000 13,44,000= office cost 4,29,000 11,43,500 7,88,800 Opening stock of finished goods

--- 8,00,000 12,00,000

Less: closing stock of finished goods

8,00,000 12,00,000 16,00,000

= cost of product - 3,71,000 31,43,500 35,88,800Add: other expenses 2,88,000 4,32,000 5,76,000= total cost 83,000 35,75,500 41,64,800Add: profit 53,17,000 50,64,500 89,98,200= sales 54,00,000 86,40,000 1,31,63,000


-int. on loan and i.o.c 19,71,503 18,28,121 16,84,739EBT 1,12,297 22,26,379 57,15,261

Taxes 30% of EBT 33,689 6,67,914 17,14,578Profit after tax 78,608 15,58,464 40,00,683

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Risk Factors

1. Changes in government policies may affect the profitability of the firm, for e.g. Government gives subsidies to the farmer etc.

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2. The intensity of competition may increase which may not be favorable for this business.

3. My industry depends on agricultural product, and agricultural product depends on rain, rain is not certain, indirectly demand of my product is not certain.

4. Price of my product is not fixed of all time, so demand is also uncertain.

SWOT Analysis

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S – STRENGTH: Harmonious and cordial relationship among employees

: Favorable premises for transportation

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W – Weakness: Storage of masala

O – Opportunities: now-a-days pizza market is very growing so it is good for company to earn profit and good image in the market

T- Threat: future increase in cost of raw material

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Future plans

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Today’s market is full of competition, in today business, if there is no change in product, we will not survive in the market for longtime.

1. So my future plan is to export more and more number of packets.2. Now at the initial stage my industries are not able to produce in bulk, so

in future I will introduce new machinery to my company for bulk production.

Conclusion

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As such we as a citizen of India having some responsibility to uplift the

economic level and also make the life more and more compatible.

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In view of above all information which can have the best way to get

comfort in the life of all household work. In earlier time, Rasam Masala is being

prepared at home and it is consider as time consuming & wastage of energy.

But now with the introducing the readymade Rasam Masala now it is easily to

bake the Rasam Masala whenever you want to eat.

Thus, we are feeling great pleasure to make the product in front of you

and so expecting move response from market& trying to satisfying the

prospecting customer.

References

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No. book name / website author name edition

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1. www.businessdictionary.com 2. www.wikipedia.com 3. Marketing Management DR. R.B.Rudani Revised Edition-2012

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http://www.wikipedia.com/

http://www.businessdictionary.com/

product project report on rasam powder

Food

student of management

wood products

management ofssi

small companies

small sector units

small businesses

student aboutproblem

small scale business