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A Product Project Report On Radhe Plastic A Project Report PREPARED BY MANAN RAWAL CLASS:- B.B.A Semester -5 ROLL NO.:- 6 ACD. YEAR 2015-2016 COLLEGE GRACE COLLEGE, RAJKOT SUBMITTED TO SAURASHTRA UNIVERSITY, RAJKOT GUIDED BY DHARA VYAS 1 | Page

Radhe Plastic - Manan Rawal 2

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Page 1: Radhe Plastic - Manan Rawal 2

A

Product Project Report

OnRadhe Plastic

A Project Report

PREPARED BY

MANAN RAWAL

CLASS:- B.B.A Semester -5

ROLL NO.:- 6

ACD. YEAR

2015-2016

COLLEGE

GRACE COLLEGE, RAJKOT

SUBMITTED TO

SAURASHTRA UNIVERSITY, RAJKOT

GUIDED BY

DHARA VYAS

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DECLERATION

I Undersigned MANAN RAWAL a student of BBA hereby declare that the project work presented in this report is my own and has been carried out the guidance of DHARA VYAS of Grace College Rajkot.

This project has not been submitted to any other university by anybody for any other examination.

Date:

Place:

MANAN RAWAL

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PREFACE

Indian management scenario seemed to be mixed hopes at

the commencement of the nineties. Most of the Small Scale Industries

in the country are handicapped& so there is an urgent need for

substituting the traditional management. In the syllabus of T.Y.B.B.A.

university has introduced the subject “ENTREPRENEURSHIP &

MANAGEMENT OF SMALL BUSINESS”. The main purpose of

introducing in the syllabus of T.Y.B.B.A. is to develop the skill in

problem solving & decision making in management of small business.

Saurashtra University has included report preparing in this subject. So

I have chosen to make project on molding safety cap.

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ACKNOWLEDGEMENT

On this successful completion of my report, I must acknowledge the

support & timely help of some personalities, which had been almost

important for me in completing this report.

I would like to express my deep gratitude to Ms. Dhara

VYAS for her co-operation and guidance.

I should also thank my parents, friend all those who have helped me

directly or indirectly in preparing this report.

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INDEX

Sr. No. Particulars Page

no.

1 Introduction 6

2 Project at a glance 7

3 Bio data of the promoters 8

4 Location and site selection 10

5 Production details 11

6 Product of the unit 12

7 Flow chart of production process 13

8 Market development 14

9 Market segmentation 15

10 Financial details 19

11 Ratio analysis 62

12 Disclosure of accounting policy 69

13 Risk factor 70

14 Future plan 71

15 Conclusion 72

16 web biography 73

INTRODUCITION OF INDUSTRY

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There are already many competitors of our product in the market as safety cap is one of the Fast Moving Consumer Goods. But as the quality of our product is better, it will achieve the desired position in the market in future. As we will produce qualitative products with the cheapest price, it will be accepted by the target consumers and will satisfy their demand. This one of the main points our unit will consider and work accordingly.

The safety cap is the product which is used in all manufacturing of electric products. So market of our product will be huge in the future. So our product must have some unique features than others and we are trying to concentrate more on this point to beat this cut throat competition.

The main objective of our unit is to provide the best quality to the consumers and by this way we will try to capture the maximum share in the market.

PROJECT AT GLANCE

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NAME OF THE UNIT RADHE PLASTIC REGISTERED OFFICE PLOT NO 109, VAID WADI

G.I.D.C RAJKOT - 360004

LOCATION OF THE PLANT PLOT NO 109, VAID WADI G.I.D.C RAJKOT- 360004

FORM OF ORGANISATION SOLE PROPREITOR FIRM

NAME OF THE OWNER MANAN RAWAL

NATURE OF BUSINESS SERVICES SECTOR

SIZE OF THE UNIT SMALL- SCALE

SSI REGISTRATION APPLIED FOR

SUBSIDY REGISTRATION APPLIED FOR

COST OF THE PROJECT 11,34,350

MEANS OF FINANCE OWN CAPITAL

COST OF CAPITAL 10%

RETURNS ON INVESTMENT55.4%

IMPLEMETATION SCHEDULE

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The major activities in the implementation of the project

have been listed and the average time for implementation is

estimated at 5 months.

No.Particulars

Months

1. Scheme Preparation & Approval 1

2. SSI Provisional Registration 1-2

3. Installation of Machinery 4-5

4. Recruitment of technical personnel 1

5.Provision of other facilities like water,

electricity etc.1

Trial & production will start from

5 th month onwards

OWNER’S BACKGROUND

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NAME MANAN RAWALACADEMIC QUALIFACTION BBA (MARKETING &

FINANCE)CONTACT NO 9898012345ROLE IN THE UNIT MARKETING / FINANCEFINANCIAL CONTRIBUTION 100% OWNED CAPITALEXPERIENCE TAKEN TRANING IN

SHREE RAM METAL

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LOCATION & SITE SELECTION

Introduction

The unit is located at such area where it can avail the

concerned business easily. Moreover exact location is a place where

there us minimum of cost and maximum profit can be achieved.

Before setting a unit, entrepreneur has to keep in mind the

various location factors such as availability of land, power, water such

infrastructure facilities availability of labour etc.

(1) Location of the Factory :-

It is quite known that vaid wadi is an industrial area and we can

obtain any facility as a convenient way. Surrounding area is

containing a big market for the safety cap. There are many other

facilities or factors which inspired us to choose proposal location.

(2) Distance from the Raw Material Market:-

There is more transportation facility because of center point of the

city. From this we can easily get the Raw Materials like Plastic. We

purchase Raw plastic Plastic Granule from Rajkot.

(3) Skilled labour available:-

For the production of our product we require skilled and unskilled

workers. So location of the factory is in city, we can get labours very

easily. So for our production this place is fulfilling our satisfaction of

labour.

Our industry is very near from Bhaktinagar Railway Station. So it

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is much benefited to our industry for Railway transportation.

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PRODUCT DETAIL

Plastic Safety Cap:-

This caps are used to give safety to delicate products from physical shocks, the caps are to be placed on outer covers of any products according to their respective sizes.

The product will be made according to demand and sizes of product, these caps are easy to place and remove and strong enough to sustain the product in physical damages and shocks occurred during transportation, shifting, placing and anything that is happened before unpacking the product.

The product is made from 1st class plastic quality which makes the product enough strong and sustainable thus it makes the firm more reliable for customers.

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PRODUCT OF THE UNIT

Safety cap

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FLOW CHART OF PRODUCTION PROCESS

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MARKET DEVELOPMENT

Mkt. development involves creating or expanding a mkt. to new or

existing products and/or increasing the value of these products. The

strategy of the product will depend on the current stage in the product

life cycle. Once more people know, a significant challenge is going to

get more people to actually try the product. This is due to vast choices

of other products that consumers can consume.

The strategic planning process in order to make good

investment decision with respect to how much to spend on mktg. &

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how to allocate this spending among opportunities available e.g.

advertising & price promotions. It is useful to go through a strategic

planning process.

As this is a new product in the mkt. so, one has to see that

there should be cost reduction by improving the quality. So the

maximum use of available resources can work at this stage but again

produce. There will be a considerable beginning power because of

large quantities purchased. Firm can adopt new technology and can

develop research & develop department efficiently that allow superior

quality & performance here, the specialized product.

MARKET SEGMENTATION

Market segmentation is method for achieving for achieving maximum

market responsefrom limited marketing resources by recognizing

differences in the response characteristics of various parts of the

market. In a sense, market segmentation is the strategy of ‘divide and

conquer’ i.e. dividing market in order to conquer them.

Thus, in order to facilitate the marketing of is product the

marketing manager, sub divides a market into homogenous sub set of

customers having common in one set so that customers may be

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served better with district marketing mix. Such selection of sub sets as

homogenous group is called market segmentation.

Here market segmentation is on basis of:

1. Product wise

2. Geographical

PRICING POLICY

Price is an important element in the marketing mix. Arrival at the right selling price is essential in a sound marketing mix. Right price can be determined through pricing research and by adopting the test market techniques. A price policy is the standing answer of the firm to recurring problem of pricing. It provides guidelines to the marketing manager to evolve appropriate pricing decisions.

There are many policies for deciding price like mark up pricing policy, going rate pricing policy, etc.

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In my unit I will be using mark up pricing method for deciding price.

MACHINERY

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INSTALLED CAPACITY

Production Capacity 125kg/dayNo. of Working Days in a

month

30

No. of Working Days in a

Year

365

Production Capacity per

month

3750kg

UTILIZED CAPACITY

Production Capacity 100kg/dayNo. of Working Days in a

month

20

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No. of Working Days in a

Year

240

Production Capacity per

month

2000kg

FINANCIAL DETAIL22 | P a g e

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Plant& machinery

Sr. no.

Particulars Qty. Rate. Amt.

1. Molding machine 2 150000 3000002. Grinder 1 10000 100003. Dye 2 45000 90000

Total 400000

Furniture & FixtureSr. no.

Particulars Qty. Rate. Amt.

1. Office storage 1 5000 50002. Office table 1 8000 80003. Office chair 3 2000 60004. Stool 5 200 1000

Total 20000

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Other fix assetsSr. no.

Particulars Qty. Rate. Amt.

1. Computer & printer 1+1 40000 400002. Telephone 2 2000 40003. Electrification - 40000 400004. Loose tools - 8000 80005. A.C. 1 30000 30000

Total 122000

Preliminary expenseSr. no.

Particulars Qty. Rate. Amt.

1. Telephone deposit - 5000 50002. Legal fees,

corporate fees. etc25000 25000

Total 30000

Total fixed assetsSr. no.

Particulars Amt.

1. Plant & machinery 4000002. Furniture & fixtures 200003. Other fix assets 1220004. Preliminary 30000

Total 572000

Working capital

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Sr. no.

Particulars Rate. Regular (per day)

Required (per month)

Per annum

1. Raw materials 70 7000 140000 1680000(per kg ) (100 kg) (20

working days)

Total 1680000

Salary & wagesSr. no.

Particulars Qty. Rate Per month Per annum

1. Factory staff Unskilled 2 6500 13000 156000 Skilled 1 5250 5250 63000

2. Accountant 1 4500 4500 54000

Total 273000

Other utilitiesSr. no.

Particulars Per month Per quitter (3 month)

Per annum

1. Water charges 400 1200 48002. Postage 500 1500 60003. Stationary 700 2100 84004. Transpiration

inwards(per month 2 time)

600 1800 7200

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outwards (per month 8 time)

2000 6000 24000

5. Repairs 1500 4500 180006. Power 7000 21000 840007. Packing(10rs per

bag)2000 6000 24000

8. Rent 10000 30000 120000

Total 296400

Working capitalSr. no.

Particulars Amt.

1. Raw materials 16800002. Salary & wages 2730003. Other utility 296000

Total 2249400

Project fundSr. no. Particulars Amt.1. Fixed capital 5720002. Working capital 562000

Total 1134350

Source of financeSr. no. Particulars Rate Amt.1. Owner fund (100%) 10% 1134350

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Total 1134350

Interest on capital(IOC)Sr. no. Particulars Rate Amt.1. Owner fund 10% 113435

Total 113435

Deprecation accountSr. no. Particulars Rate Value Amt. 1. Machine 15% 400000 600002. Other fixed asset 25% 122000 305003. Furniture 20% 20000 4000

Total 94500

Annual cost of productionSr. no. Particulars Amt. 1. IOC 1134352. Deprecation 945003. Other utility 2964004. Raw materials 1680000

Total 2184335

Sales forecastPer kg. Year Unit /annum Rate Amount

133 1 3192000 1.25 3990000

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135 2 3564000 1.35 4811400137 3 3781200 1.75 6617100140 4 4200000 2.00 8400000145 5 4350000 2.50 10875000

Schedule of fix cost & variable costSr. no. Particulars Variable Fix cost 1. Deprecation - 945002. IOC - 1134353. Salary 16380(60%) 109200(40%)4. Other expenses 177840(60%) 118560(40%)5. Raw materials 1680000 -

Total 2021640 435695

Fixed costSr. no. Particulars Amt. 1. Deprecations 945002. IOC 1134353. Salary (40%) 1092004. Other expenses (40%) 118560

Total 435695

Fixed cost / unit

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Total fixed cost / total no. of unit 0.14ps / unit

Variable costSr. no. Particulars Amt.1. Raw materials 16800002. Salary (60%) 1638003. Other expenses (60%) 177840

Total 2021640

Variable cost Total variable cost / total no. of unit 2021640/3192000 0.63ps/unit

Contribution / unit S.P. /unit – V.C. /unit 1.25-0.63 .062

B.E.P (%) {fixed cost /(fixed cost +profit)}*75 431695

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1st year

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Cost sheetParticulars Amt.Sales 3990000

+

Closing stock 332500

Cost of operation 4322500

Raw materials 1680000

Direct wages to workers Unskilled/skill 219000

Direct expenses & utility Water charges 4800Electricity 84000

Prime cost 1987800

Repairs 18000Deprecation 94500

Factory cost 112500

Salary of office staff Accountant 54000Preliminary return of 6000Stationary & printing 8400Postage & courier expenses 6000IOC 113435Out warts 24000Rent 120000Packing 24000In warts 7200

A+B+C 2463335

Profit (NPBT) 1859165

Trading accountParticulars Amt. Particulars Amt.Opening stock -Purchase 1680000 Sales 3990000Wages 219000 Closing stock 332500Power 84000Carriage inward 7200Gross profit 2332300

4322500 4322500

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Cash accountParticulars Amt. Particulars Amt.

To capital 1134350 By fixed capital 572000To sales 3990000 Raw materials 1680000

By salary 273000Other utilities 296400By income tax 394000By balance 1908950

5124350 5124350

Profit & loss accountParticulars Amt. Particulars Amt.

Rent 120000 Gross profit 2332300Salary 54000Packing 24000Repairs 18000Preliminary expenses

6000

Deprecation 94500Stationary 8400Water charges 4800Postage 6000Transportation (out 24000

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wards)IOC 113435Income tax 39400

Net profit 1465165

2332300 2332300

Balance sheetLiability Amt. Assets Amt.

Capital 1134350

Machinery 400000-deprecation 60000

340000

Net profit 1465165

Fix assets 122000

IOC 113435 -deprecation 30500

91500

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Furniture 20000-deprecation 4000

16000

Cash 1908950Preliminary (30000-6000)

24000

Closing stock 332500

2712950

2712950

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2nd year

Purchas of raw materialsSr. no.

Particulars Rate (per kg)

Regular (per day)

Required (per month)

Per annum

1. Raw materials

72(per kg)

7200(100 kg)

158400(22 working

days)

1900800

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Salary &wagesSr. no.

Particulars Qty. Rate Per month

Per annum

1. Factory staff Unskilled 2 7150 14300 171600 Skilled 1 6000 6000 72000

2. Accountant 1 5000 5000 60000

Total 303600

Other utilitiesSr. no.

Particulars Per month Per quarter Per annum

1. Water charges 500 1500 60002. Postage 600 1800 72003. Transportation

In warts (per month 2 time)

700 2100 8400

Out warts 2200 6600 26400

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(per month 8 time)

4. Stationary 900 2700 108005. Repairs 2000 6000 240006. Power 7300 21900 876007. Packing (12 per

bag)3000(250

begs)36000 36000

8. Rent 12000 144000 144000

Total 350400

DeprecationSr. no.

Particulars Rate Value Amt.

1. Machine 15% 340000 510002. Other fixed assets 25% 91500 228753. Furniture 20% 16000 3200

Total 77075

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Cost Sheet

Sr. no.

Particulars Amt.

Sales 4811400+ Closing stock 481140

Cost of operation 5292540Contribution 4960040

- Opening stock 332500

Raw materials 1900800 Direct wages to workers

Skilled \ unskilled 243600

Direct expenses & utilities Water charges 6000Power 87600Prime cost 2238000

Repairs 24000Deprecation 77075Factory cost 101075

Salary of office staff Accountants 60000Preliminary return off 6000Stationary 10800Postage 7200IOC 271000Out warts 26400Rent 144000In warts 8400

A+B+C 2908875

NPBT (profit) 2051165

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Cash account Particulars Amt. Particulars Amt.

To balance 1908950 Raw materials 1900800To sales 4811400 By salary 303600

Other utilities 350400By income tax 459000By balance 3706550

6720350 6720350

Trading accountParticulars Amt Particulars Amt

Opening stock 332500 Sales 4811400Purchase 1900800 Closing stock 481140In warts 8400Wages 243600Power 87600

Gross profit 2719640

5292540 5292540

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Profit & loss accountParticulars Amt. Particulars Amt.

Rent 144000 Gross profit 2719640Salary 60000Packing 36000Repairs 24000Deprecation 77075Stationary 10800Water charges 6000Postage 7200Out warts 26400IOC 271000Income tax 459000Preliminary 6000

Net profit 1592165

2719640 2719640

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Balance sheetParticulars Amt. Particulars Amt

Capital 2712950 Machinery 340000

IOC 271000 -deprecation 51000

289000

Net profit 1592165Furniture 16000-deprecation 3200

12800

Other fixed assets 91500-deprecation 22875

68625

Preliminary 24000 -deprecation 6000

18000

Cash balance 3706550Closing stock 481140

4576115 4576115

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3rd year

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Purchase & raw materialsSr. no.

Particulars Rate (per kg )

Regular (per day )

Required (per month )

Per annum

1. Raw materials 75(per kg)

7500(100 kg)

187500(25 working

days)

2250000

Salary & wagesSr. no.

Particulars Qty Rate Per month

Per annum

1. Factory staff Unskilled 2 7500 15000 180000 Skilled 1 6500 6500 78000

2. Accountant 1 5500 5500 66000

Total 324000

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Other utilitiesSr. no.

Particulars Per month Per quarter Per annum

1. Water charges 700 2100 84002. Postage 600 1800 72003. Transpiration

In warts (per month 2 time)

800 2400 9600

Out warts(per month 8 time)

2400 7200 28800

4. Stationary 1000 3000 120005. Repairs 2500 7500 300006. Power 7500 22500 900007. Packing (12 per

bag)3300(275

bags )9900 39600

8. Rent 17000 51000 204000

Total 429600

DeprecationSr. no.

Particulars Rate Value Amt

1. Machinery 15% 289000 433502. Other fixed assets 25% 68625 171503. Furniture 20% 12800 2560

Total 63060

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Cash accountParticulars Amt Particulars Amt

To balance 3706550 Raw materials 2250000To sales 6617100 By salary 324000

Other utilities 429600By income tax 831150

By balance 6488900

10323650 10323650

Trading accountParticular Amt Particulars Amt

Opening stock 481140 Sales 6617100Purchase 2250000 Closing stock 661710In warts 9600Wages 258000Power 90000

Gross profit 4190070

7278810 7278810

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Profit & loss accountParticulars Amt Particulars Amt

Rent 204000 Gross profit 4190070Salary 66000Packing 39600Repair 30000Deprecation 63060Stationary 12000Water charges 8400Postage 7200Out warts 28800IOC 457600Income tax 831150Preliminary 6000

Net profit 2436260

4190070 4190070

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Balance sheetParticulars Amt Particulars Amt

Capital 4576115 Machinery 289000

IOC 457600 -deprecation 43350

245650

Net profit 2436260 Furniture 12800-deprecation 2560

10240

Other fix assets 68625-deprecation 17150

51475

Cash balance 6488900

Closing stock 661710

Preliminary 18000Deprecation 6000

12000

7469975 7469975

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4th year

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Purchase of raw materialsSr. no.

Particulars Rate (per kg)

Rate (per day)

Required (per month)

Per annum

1. Raw materials 80 (per kg)

8000 (100 kg)

200000 (25

working days)

2400000

Total 2400000

Salary & wagesSr. no.

Particulars Qty Rate Per month

Per annum

1. Factory staff Unskilled 2 8000 16000 192000 Skilled 1 7000 7000 84000

2. Accountant 1 6000 6000 72000

Total 72000

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Other utilitiesSr. no.

Particulars Per month Per quarter Per annum

1. Water charges 700 2100 84002. Postage 700 2100 84003. Transportation

In warts (per month 2 time)

900 2700 10800

Out warts (per month 8 time)

2500 7500 30000

4. Stationary 1200 3600 144005. Repairs 2800 8400 336006. Power 7600 22800 912007. Packing (15 per

bags)4500 13500 54000

8. Rent 17000 51000 204000

Total 454800

DeprecationSr. no.

Particulars Rate Value Amt

1. Machine 15% 245650 368002. Other fix assets 25% 51475 128503. Furniture 20% 10240 2050

Total 51700

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Cost sheetSr. no.

Particulars Amt

Sales 8400000+ Closing stock 840000

Cost of production 9240000- Opening stock 661710

Contribution 8578290

Direct wages to workers Unskilled \skilled 276000Raw materials 2400000

Direct expenses & utilities Water charges 8400Power 91200Prime cost 2775600

Repairs 33600Deprecation 51700Factory cost 85300

Salary of office staff Accountant 72000Preliminary 6000Stationary 14400Postage 8400IOC 746990Out warts 30000Rent 204000Packing 54000In warts 10800

A+B+C 40070800

NPBT (net profit) 4570800

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Cash accountParticulars Amt Particulars Amt

To balance 6488900 Raw materials 2400000To sales 8400000 By salary 348000

Other utilities 454800By income tax 1238000By drawing 1000000By balance 9448100

14888900

14888900

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Trading accountParticulars Amt Particulars Amt

Opening stock 661710 Sales 8400000Purchase 2400000 Closing stock 840000In warts 10800Wages 276000Power 91200

Gross profit 5800290

9240000 9240000

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Profit & loss accountParticulars Amt Particulars Amt

Rent 204000 Gross profit 5800290Salary 72000Packing 54000Repairs 33600Deprecation 51700Stationary 14400Water charges 8400Postages 8400Out warts 30000IOC 746990Income tax 1238000Preliminary 6000

Net profit 3332800

5800290 5800290

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Balance sheetParticulars Amt Particulars Amt

Capital 7469975 Machinery 245650

IOC 746990 -Deprecation 36800

208850

Drawing 1000000Net profit 3332800 Furniture

10240-deprecation 2050

8190

Other fix assets 51475-deprecation 12850

38625

Preliminary 12000-deprecation 6000

6000

Cash balance 9448100Closing stocked 840000

10549765 10549765

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5th year

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Purchase of raw materialsSr. no.

Particulars Rate (per kg )

Rate (per day )

Rate (per month )

Per annum

1. Raw materials 83(per kg )

8300(100 kg )

207500 2490000

Total 2490000

Salary & wagesSr. no.

Particulars Qty Rate Per month

Per annum

1. Factory staff Unskilled 3 8500 25500 306000 Skilled 1 7500 7500 90000

2. Accountant 1 6500 6500 78000

Total 474000

Other utilitiesSr. Particulars Per month Per quarter Per annum

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no.

1. Water charges 750 2250 90002. Postage 750 2250 90003. Transpiration

In wart (per month 2 time)

950 2850 11400

Out wart (per month 8 time)

3000 9000 36000

4. Stationary 1200 3600 144005. Repairs 3000 9000 360006. Power 8000 24000 960007. Packing (16 per

bags )4800 14400 57600

8. Rent 17500 52500 210000

Total 479400

DeprecationSr. no

Particulars Rate Value Amt

1. Machinery 15% 208850 313202. Other fix assets 25% 38625 96503. Furniture 20% 8190 1630

Total 42600

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Page 60: Radhe Plastic - Manan Rawal 2

Cost sheetSr. no. Particulars Amt.

Sales 1087500+ Closing stock 108750

Cost of production 9787500- Opening stock 840000

Contribution 8947500

Direct wages to worker Unskilled/skilled 396000Raw materials 2490000

Direct expenses & utilities Water charges 9000Power 96000Prime cost 2919000

Repairs 36000Deprecation 42600Factory cost 78600

Salary of office staff Accountant 78000Preliminary 6000Stationary 14400Postage 9000IOC 1054970Out warts 36000Rent 210000Packing 57600In warts 11400

A+B+C 4546970NPBT (profit) 4400530

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Page 61: Radhe Plastic - Manan Rawal 2

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Cash accountParticulars Amt. Particulars Amt.

To balance 9448100 Raw materials 2490000To sales 1087500

0By salary 474000

Other utilities 479400By income tax 1854300

By balance 15025400

20323100

20323100

Page 62: Radhe Plastic - Manan Rawal 2

Trading accountParticulars Amt. Particulars Amt.

Opening stock 840000 Sales 10875000Purchase 2490000In warts 11400 Closing stock 1087500Wages 396000Power 96000

Gross profit 8129100

11962500

11962500

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Page 63: Radhe Plastic - Manan Rawal 2

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Profit & loss accountParticulars Amt. Particulars Amt.

Rent 210000 Goss profit 8129100Salary 78000Packing 57600Repairs 36000Deprecations 42600Stationary 14400Water charges 9000Postage 9000Out warts 36000IOC 1054970Income tax 1845300Preliminary 6000

Net profit 4721230

8129100 8129100

Page 64: Radhe Plastic - Manan Rawal 2

Balance sheetParticulars Amt. Particulars Amt.

Capital 10549765 Machine 208850

IOC 1054970 -deprecation 31320

177530

Net profit 4721230 Other fix assets 38625-deprecation 9650

28975

Furniture 8190-deprecation 1630

6560

Preliminary 6000-deprecation 6000

-

Cash balance 15025400

Closing stock 1087500

16325965 16325965

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Page 65: Radhe Plastic - Manan Rawal 2

RATIO ANALYSIS

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Page 66: Radhe Plastic - Manan Rawal 2

Net profit ratio

Net profit ratio = net profit ratio / Total sales * 100

1st year

Net profit ratio = 1465165 / 3990000 * 100

= 36.72

2nd year

Net profit ratio = 1592165 / 4811400 * 100

= 33.09

3rd year

Net profit ratio = 2436260 / 6617100 *100

= 36.82

4th year

Net profit ratio = 3332800 / 8400000 *100

=39.68

5th year

Net profit ratio = 4721230 / 10875000 * 100

= 43.41

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Page 67: Radhe Plastic - Manan Rawal 2

Return on investment

ROI = Earnings before interest and tax / total investment * 100

1st year

ROI = 1504565 / 2712950 * 100

= 55.46

2nd year

ROI = 2051165 / 4576115 *100

= 44.74

3rd year

ROI = 3267410 / 7469975 * 100

= 43.74

4th year

ROI = 4570800 / 10549765 * 100

= 43.32

5th year

ROI = 4400535 / 16325965 * 100

= 40.28

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Page 68: Radhe Plastic - Manan Rawal 2

Gross profit ratio

Gross profit ratio = gross profit / sales * 100

1st year

= 2332300 / 3990000 * 100

= 58.45

2nd year

= 2719640 / 4811400 * 100

= 56.52

3rd year

= 4190070 / 6617100 * 100

= 63.32

4th year

= 5800290 / 840000 * 100

= 69.05

5th year

= 8129100 / 10875000 * 100

= 74.75

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Page 69: Radhe Plastic - Manan Rawal 2

Stock turn over

Stock turn over = COGS / Average stock

1st year

Stock turn over = 1657700 / 166250

= 9.9

2nd year

Stock turn over = 209760 / 406820

= 5.1

3rd year

Stock turn over = 2427030 / 571425

=4.2

4th year

Stock turn over = 2599710 / 750855

=3.5

5th year

Stock turn over = 2745900 / 963750

=2.8

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Page 70: Radhe Plastic - Manan Rawal 2

Fixed turnover ratio

Fixed turnover ratio = sales / fixed assets

1st year

Fixed turnover ratio = 3990000 / 447500

= 8.9:1

2nd year

Fixed turnover ratio = 4811400 / 370425

= 12.9:1

3rd year

Fixed turnover ratio = 6617100 / 307365

= 21.5:1

4th year

Fixed turnover ratio = 8400000 / 255665

= 32.8:1

5th year

Fixed turnover ratio = 10875000 / 213065

= 51:1

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Page 71: Radhe Plastic - Manan Rawal 2

Operating expenses

Operating expenses = operating expenses / sales * 100

1st year

Operating expenses = 2124365 / 3990000 * 100

= 53.24

2nd year

Operating expenses = 2371565 / 4811400 * 100

= 49.29

3rd year

Operating expenses = 3669410 / 6617100 * 100

= 55.45

4th year

Operating expenses = 5001600 / 8400000 * 100

= 59.54

5th year

Operating expenses = 7031530 / 10875000 * 100

= 64.66

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Page 72: Radhe Plastic - Manan Rawal 2

DISCLOSURE OF ACCOUNTING POLICIES

The depreciation is being calculated according to Reducing

Balance Method. In this method, the depreciation changes

according to the value of the asset remaining in the last year.

The asset is totally written off slowly and gradually.

The accounting policies used in this report is Double Entry

System and all the effect of Income and Expenditure is given

according to Double Entry System.

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Page 73: Radhe Plastic - Manan Rawal 2

RISK FACTOR

In each and every business activity there is some risk in the some

way our unit is also having some risk factory, which are as follows:

As our product is under the list of food items so if license not

provided by government authority within a specific time it is

difficult to start the production.

At present there is minimum competition in the market but in

the future then may be cut-throat competition and it may be

difficult to continue the business at the time of competition.

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Page 74: Radhe Plastic - Manan Rawal 2

FUTURE PLANS

Every unit has its own dream and plan Continuous planning in

specific direction for expanding activities is quit essential thinking of

future plans and as each and every individual, even every company

ambitious.

RADHE PLASTIC has an ambition to achieve bright future.

Following are the future plans of the RADHE PLASTIC.

1. To make the firm a medium scale industry and then a

large scale.

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Page 75: Radhe Plastic - Manan Rawal 2

CONCLUSION

In the product project report on RADHE PLASTIC I

have discussed all financial data and other relevant

information.

The market RADHE PLASTIC of is expanding; demand

for the services is increasing day by day. The return on this

business is also satisfactory.

At last it can be said that future of this product is very

bright.

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Page 76: Radhe Plastic - Manan Rawal 2

WEBLIOIGRAPHY

www.wikipedia.com

www.google.co.in

www.law.incometaxindia.gov.in

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