Sky Products

Declaration

I undersigned Mr. Manan Rawal the student of F.Y. B.B.A..

Here, I declare that presented project repot work on Sky Products (Rajkot) is my own work under the guidance of Mrs. Khusali Katira.

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

Date :~

Manan Rawal

Signature of In charge 1

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Preface

In the B.B.A. Field, only the theoretical knowledge of business is not enough for achieving all over knowledge of business Management.Practical training is also important in all aspects of human life. Keeping this in mind, Saurashtra University has included the subject of practical studies or Industrial Training in B.B.A. of some favourable days in every year of B.B.A.

I had attended on Industrial training at Sky Productss Pvt. Ltd. (Rajkot). It is well known plastic manufacturing unit using advanced technology & equipment. The report submitted here, provides all information that I have obtained in my practical training at Sky Productss Pvt. Ltd..

Date :~

Manan Rawal

Signature of In charge 2

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Acknowledgement

It quite delighting for me to get admission in course of business administration which is most valuable in commerce field. This is great opportunity for me to present my third project report of the industrial unit that I have visited. I am very grateful to our Mrs. Khushali Katira for their sincere attention valuable guidance and providing suggestion & guiding me to prepare this report. I am also thankful to Mr. Mayank gol for providing me the permission to visit this unit. I am also thankful to Mr. Hardik Boghara for sparing their valuable time inspire of their busy schedule and helping me to collect all such information.

Date :~

Manan Rawal

Signature of In charge 3

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Main Index
Sr. no. 01. General Aspects Introduction Portfolio of the Firm Mission, Vision & Values Profile of the Partners Basis and Presumptions Organisational Structure Implementation Schedules Location Justification 2. Technical Apects Product Detail Types of the Product Usage & Features of the Product Production Capacity Schedule Contents Page no. 08 09 10 12 13 15 16 17 18 20 21 21 24 25

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Details of Raw Material and Suppliers Details of the Machineries Production Process Quality Justification Pollution Control Energy Conservation Staff & Labour Details

26 27 28 29 30 30 31

3.

Marketing Aspects Marketing Marketing Research Market Potentiality Promotional Activities Distribution Channel Demand Analysis Pricing Decision

32 33 33 34 34 35 36 36

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4.

Financial Aspects Fixed Capital Detail Working Capital Total Capital Investment Sources of Finance Depreciation Sales Forecast Fixed & Variable Cost Schedule Projected Cost Sheet Projected Financial Accounts (80%) Projected Financial Accounts (90%) Projected Financial Accounts (100%) Schedules For Overheads

37 38 40 42 42 43 43 44 46 49 52 55 58

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5.

Financial Analysis Cost of Production Turnover Profitability Analysis BEP Analysis Risk Factors Raw Material Suppliers Machinery Suppliers

62 63 64 65 67 69 70 71 72 74 76

6. 7. 8.

Future Prospectus Conclusion Bibliography

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General Aspects

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Introduction

Small scale industry is the pillar of Indian economy. Most of the business carried out in India are small scale units. Small scale units provides raw materials to large scale units and be partners of their success. The number of small scale units, the volume and range of products manufactured the employment provide and value of exports by these industries have grown substantially during the last decade.

This report is on Plastic Bottles and the product is very much known to the people. Plastic industries are one of the up coming industries now a days. So, demand for plastic products for various uses is increasing day by day. Plastic is mostly used as packing material for industries and storing material for stores and house plastic bottles are one of the most common storing and packing containers.

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Portfolio Of The Firm

Page no.
Name of the Unit Sky Products.

Form of the Unit

Partnership Firm

Size of the Unit

Small Scale Industry

SSI Registration No.

Applied For Registration

Products Name

Plastic Bottles

Brand Name

$ky

Name of the Promoters Kaushal G. Dhaduk Mohit N. Bhagdev Hardik J. Boghara Factory Location Plot no. 901, Phase II, G.I.D.C. Metoda, Lodhika, Dist. Rajkot 105, Ground Floor, Kings Plaza, Astron Chowk, Rajkot-360002.

Registered Office

Bankers

Jeevan Commercial Bank ICICI bank IDBI Bank GSFC

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Establishment Year 2011

Phone Number/ Fax No.

(0281) 2901553/2901554

Web Site

www.skyproducts.com

E-mail Id

www.support@skyproducts.com

Number of Employees

80

Cost of the Project

10264500

Production Capacity

As per Product

Contribution in Finance

80 % Owned Capital 20 % Borrowed Capital

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Sky Products Mission, Vision & Values

Our Vision
The most successful and admired Plastic Product company, which means that we are the most trusted & qualitative company, the easiest to deal with, offer the best value for money, and set the standards in the industry. The most obvious choice for all.

Our Values
The values that we observed while we work. Integrity Innovation Customer Centric People care One for all and all for one Team work Joy & Simplicity

Our Mission
We, at plastic industries want to provide customers both in rural areas as well as urban areas high quality branded products. We, by producing Sky Products Products, want to help in a small way to rural community in solving their liquid keeping problems. We are in the business of plastic industries world. We have a mission to accomplish the following objectives: Accelerate the growth of rural & urban market for our plastic products. Strengthen our positioning Gujarat market Rapidly popularizing our products across India.

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Profile Of The Partners

Partner 1
Name of the Partner Address

Page no.
Mayank Gol Lekh, 7,Krishna Plot, Near the Shishu Mandir, Derdi (Kumbhaji)-364465, Dist. Rajkot. I.C.W.A., I.C.F.A., MBA. Founder & Owner Finance & Cost Department 40 % 40 %

Educational Qualification Designation in Unit

Financial Contribution Share in Profit

Partner 2
Name of the Partner Address

Page no.
Kaushal Dhaduk Satyam 8, Vishweshwar, Movdi Chowkdi, Rajkot-360006. Diploma in HRM, B.E.(Chemical). HR & Technical Department 20 % 20 %

Educational Qualification Designation in Unit Financial Contribution Share in Profit

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Partner 3
Name of the Partner Address

Page no.
Mohit Bhagdev Jalaram Krupa, 16, Laxmi Vadi, Rajkot-360004. Ph.D.(Whole Marketing Elements). Marketing & Mfg. Department 20 % 20 %

Educational Qualification Designation in Unit Financial Contribution Share in Profit

Partner 4
Name of the Partner Address

Page no.
Hardik Boghara Waqt 2,Gulab Nagar, Master Society Main Road, Rajkot-360002. C.A., UPSC, PGDEM. Accounting & Export Department 20 % 20 %

Educational Qualification Designation in Unit Financial Contribution Share in Profit

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Basis & Presumptions

The unit will work for 300 working days in a year on single shift basis. The salaries & wages, cost of land and building and Raw -Material cost have been taken according to prevailing market rates. Time period for achieving full envisaged capacity utilization is 2 years. The salaries & wages will be given on monthly. The cost in respect of machinery and equipment, raw -materials and the selling price of the finished product etc are those generally prevailing at the time of preparation of the project report.

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Organisational Structure

ORGANIZATION STRUCTURE

Managing Director

HR Manager

Production Manager

Sales Manager

Finance Manager

Assistant

Designer

Assistant

Accountant

Workers

Typist

Skilled

Unskilled

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Schedules Implementation

The major activities in the implementation of the project has been listed here,

Page no. 1. Preparation of project report selection of 04 Months site & S.S.I registration etc Procurement of finance loan construction 10 Months of factory shed machinery procurements, erection and commissioning trials runs & recruitment of staff & labours permanent registration etc. Machinery procurement 04 Months

2.

3.

Total Time Period

1 year & 6 months

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Location Justification
JUSTIFICATION OF LOCATION
To select the location is one of the very important & crucial decisions for any organization. A good location may reduce the cost of production & distribution to considerable extend. While selecting a site, it is necessary to consider technical, commercial and financial aspects and then select a site that may provide maximum advantages. We have selected GIDC Metoda while keeping in mind the following facilities: TRANSPORTATION The purposed factory will be at Metoda, Rajkot well connected by three modes of transportation, Railway, Roadway & Airway. The factory site is in proximity with the Rajkot Railway Junction , Domestic Airport and the national highway 8B and the state highway Rajkot-Kandla. The nearest international city is Mumbai 45 minutes flying time and the nearest major port is Kandala 200 km. by road. So all kind of transporting vehicle, truck, train, ship, plane etc are available not too far from the site and hence our location in respect of to transport availability for the product concerned is the most suitable one. Facility of transportation Smart availability of raw materials Cheap labour Market Availability of power supply Finance facilities Water facility Govt. Facility

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AVAILABILITY OF RAW MATERIAL Mainly for our product bottles is needed other raw materials which are in detail given later in this report. All those raw materials are available at Ahmedabad, Viramgam, Raipur, Bhila etc. MAN POWER All manufacturing concern small or big always depends on available man power skilled, unskilled, and semiskilled. We have also given a thought to this matter and found that ours is an area cheep labour is easily available in our project. MARKET All products manufacturers always think about market of this product. Our nearest and main markets are, Ahmedabad, Rajkot, Jamnagar, Mahesana etc. WATER FACILITIES Water is not required for product purpose. It is required only for domestic purpose. Arrangement will be made at the site by installing tube well. SOURCES OF FINANCE Finance is oxygen or blood for the industry and thus the procurement of finance is very vital. The various financial industries like the nationalized banks,

commercial banks, GSFC branch are located in Rajkot city near to the site of the factory.

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Technical Aspects

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Product Details
The unit will produce only 1 litre plastic bottles for the time being. There bottles will be available with sealing caps without printing of any kind words & figures. Plastic granules are the main raw material for this product and we can get this raw material very easily from the market .

Types Of The Products

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Usage & Features Of The Product

This product will be used as a packing material for many industries like every food products which are in liquid form for packaged drinking water industry for oil industry, chemical industry, pharmaceutical industry & other ailed product industries.

Now a days people prefer more plastic items than glass items. So plastic bottles are regularly used for house hold purpose and many other producers who are selling their product in liquid form for them plastic bottles are pre- requirement. Example is that every people purchase sharbat bottles for their routine use. There are certain features of this product which are as under. It is not a costly product and afford by every people It is in less weight so it is very Smart to movement. This product doesnt need a mu ch care because this product is not easily broken or damaged. We can store a plastic bottle in any place. These plastic bottles are very useful to other indus tries for Packing materials.

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Production Capacity Schedule

Page no. Installed capacity Utilized capacity Daily production Weekly production Monthly production Monthly sales Yearly sales No of working days No of working days 1012500 813000 2710 16260 67750 677500 8130000 25 in a month 300 days in a year

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Details Of Raw Materials

RAW MATERIALS & SUPPLIERS

Raw material is the basic and main requirement for producing any product for our industry we need plastic granules as a raw materials.

Two companies are selling plastic granules of different grades. According to their grades their prices are changed and for a different plastic items different grade of plastic granules are used.

Main Two companies are selling plastic granules

(i) (ii)

Reliance IPCL

Sky Products will purchase plastic granules from Reliance Industries.

Grade of Plastic Granules GPBN 52GB003

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Sky Products Details Of Machineries

MACHINERY & EQUIPMENTS

Machinery is such a thing through which Raw material are converted into finished product. Sky Products or this unit will use following machineries in their production.

(1)

Cooling tower This machine is used for cooling plastic after jinning plastic

stones which are in liquid mode. (2) Air compressor This machine is used for giving specific shape by creating bottles. (3) Scrap Grinder This machine is used for removing scrap to give perfect size to the product. (4) Thermoplastic Injector Molding Machine This machine is used for checking all bottles whether anyone is lickage or defective pieces.

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Production Process
Production Process Chart

Heating Stones in cylinder

Cooling of Plastic Liquid

Providing Shape

Mixing Of Colours

Removing Scrap

Final Product

Quality Test

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Quality Specification

QUALITY SPECIFICATION

According to C.D. Lewis, Quality is, An asset which may be offered to the potential customers of a product or services.

It is the totality of features and characteristics of a product that bear an ability to satisfy a given need. It makes a product fit for the use of customers. This fitness is related to benefits derived by the customers and customer satisfaction.

For Plastic Products, the quality of a product depends upon strict supervision and use of correct material according to the specification. In the construction care should be taken while roughening the upper. If they over roughed, the fibers will be weakened. The adhesive should be properly applied to obtain permanent bond.

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Pollution Control
Pollution Control At the time of conversion of inputs into outputs, some waste is inevitable. This wastage and spoilage create some pollution which harms the environment. This pollution can be controlled if various steps are taken into consideration. As far as Sky Products. is concern, this industry will not generate any type of pollution.

Energy Conservation
Energy Conservation

Energy is the basic requirement for any manufacturing process. Energy can be in the form of fuel as well as power. It is necessary to utilize optimum energy to reduce the cost and achieve maximum production. Energy conservation in this type in unit is much on the lower side since low powered motors are used in the production activity. The staff of the unit should be made aware of the need to conserve energy by switching off energy sources when not required.

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Staff & Labour Details

Page no. General Manager Production Manager Marketing and Sales Manager Finance Manager Skilled Workers Semi-Skilled Workers Unskilled Workers Fitter For Maintenance Supervisor Receptionist Store Keeper Watchman Foreman Peon Total 01 01 01 01 35 15 10 01 03 01 01 03 02 05 80

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Marketing Aspects

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Marketing Exercises
MARKETING

What is marketing? Marketing is the process that facilitates an exchange of goods for money to the mutual satisfaction of both the producer and the consumer. What is a sale? A sale is an exchange of goods for money. It is the end point of the marketing effort. In the global world of present times when competition can come from any part of the world, it becomes essential to take a marketing approach where the customer is treated as a KING. The marketing philosophy places the customers at the centre of all business considerations.

MARKET RESEARCH
Marketing research has to do with the gathering, processing, analysis, storage and dissemination of information to facilitate and improve decision making. Market research is a very important tool for an organization. It fills the gap between the development of a product and its ultimate sales to the consumer. Market research enables the entrepreneur to plan, to organize, to stimulate, to co-ordinate and to control production, finance, sales, advertising and profits. It has become a key resource to accomplish two objectives of customer satisfaction and profitability. Sky Productss has also done market research and in future also it needs to conduct it to keeps the firm in touch with the market and to survive in cut-throat competition.

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MARKET POTENTIALITY
Market potential is the scope of the product occupying space existing market. It represents an anticipated level of demand and it also reflects on the pattern of the demand. The aspects which are covered under market potential are customers, market share, contribution in the market already existing and many more. As the population of the country is ever going up, resulting in higher and higher demands of the consumer item. Thus, in view of both national requirement and vast export potential, there is immense scope for further promotion of this industry in the country. Thus, potentiality of children Bottles in the market is very strong.

PROMOTIONAL ACTIVITIES
Promotional activities are those activities which make efforts to promote the product and help to increase the market share. Advertisement is done through various medium as a promotional tool in this firm. Promotion can be defined as, the co-ordinated efforts to establish channels of information and persuasion to facilitate or foster the sale of goods or services, or the acceptance of ideas or points of view.

Sky Products gives advertisement in: news papers television magazines on radio and even through personal selling

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DISTRIBUTION CHANNEL
The channels of distribution are the set of marketing institutions participating in the marketing activities involved in the movement or the flow of goods or service from the primary producer to the ultimate consumers. Channels of distribution are best understood as alliances of various marketing institution performing specific marketing functions. The channel of distribution includes the original producer the final buyer and any middleman either wholesaler or retailer is component are linked in the channel system by one or more marketing flows. In order to bring the goods from the place of manufacturer to the place of the consumer, the goods have to follow a path or route, which is known as Channel of distribution or Trade channel which are as follows:

Manufacturer

Retailer

Consumer

Sky Productss follow the above channel of distribution.

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Sky Products
Demand Analysis
Success of any organization depends upon the demand of the product of that organization. Without knowing about the demand of any product if you are produce that product than it may happen that you will have to suffer a loss. This unit is going to produce 1 litter plastic bottles. The demand for any plastic items is increasing rapidly. Demand for the packaged drinking water chemicals, drugs, pharmacy p roduct, every food product which are in liquid form, kitchen wear, etc are also increasing due to increase in production and so for packing all these products plastic bottles are required. The unit will get a direct purchaser for their product i.e. manufacturer of all food products, oil millers, pharmacy company, chemical companies etc gave assurance to purchase plastic bottles and we all know that future of plastic containers is very bright so we can say that this unit will definitely achieve the projected target.

Pricing Decision
This firm is going to product 1 liter plastic bottles, so to decide a proper pricing policy for this product is very necessary. Pricing is an important decision that every company has to high price or low price may create a bad reputation of the firm the price of a product is crucial decision. Sky Products i.e. our firm will adopt cost plus pricing policy for their product .

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Financial Aspects

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Total Fixed Assets

A) Plant and Machinery

SI.No. 01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19

Imp / Ind Hydraulic Sewing Arm Upper Clicking Ind Machine Upper Skiving M/c Ind Punching & Eyeleting M/c (Treadle Ind Operated) Upper Folding M/c Imp Stamping M/c for Upper & Lining Ind Flat bed sewing machine (Power Ind operated) Post bed single needle machine Imp (Power) Cylinder bed sewing machine Imp Zig Zag Sewing Machine (Power) Imp Toe lasting machine Imp Seat lasting machine Imp Double ended buffing and brushing Ind machine Injection Moulding Machine (fully Imp automatic) Cost of moulds --Spare parts for imported machinery Imp @ 10% Wooden lasts @ 250 per pair for 400 Ind pairs Tools and equipment, dies for upper Ind Office equipment and furniture Ind Electrification and installation charges --@ 10% of the cost of machinery Total --Say

Description

Qty 1 1 1 1 1 4 2 2 1 1 1 1 1 -

Value (Rs.) 112500 82500 15000 127500 22500 72000 225000 240000 120000 1200000 1200000 37500 1500000 225000 461250 180000 90000 75000 495450 6481200 6481000

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B) Land & Building

PARTICULARS

YARD

RATE

AMOUNT

Land Building Total

400 sq 2500sq

500 400

2000000 1000000 3000000

C) Other fixed assets:Pre-operative expenses 73500

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WORKING CAPITAL

A). Salary and Wages

SI.No. 01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11.

Personnel Manager (Production) Manager (Sales) Designer Supervisor Skilled Worker/Machine Operator Unskilled Worker Accountant Clerk cum Typist Storekeeper Peon cum Chawkidar Sweeper

No. 01 01 01 02 20 10 01 01 01 01 01

Salary (Rs.) 22500 22500 127500 15000 7500 4500 6750 6000 6000 4500 3000 Total

Amount (Rs.) 22500 22500 127500 30000 1,00,000 45000 6750 6000 6000 4500 3000 3,09,000

B) Utilities (Per Month):-

SI.No. 01. 02. 03.

Description Power 20 HP Domestic light Water Charges

Qty. 6000 units 600 units

Value (Rs.) 30000 12000 3000

Total

45000

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C).Raw Material

SI.No. 01. 02. 03. 04. 05. 06. 07.

Description FC Upper Softy lining Leather Board Canvass PVC Materials (Black/Colour) Adhesive & grinderies Packing materials

Qty. 168750 dcm 93750 dcm 9375 pairs 1200 mtrs 9375 Pairs 9375 pairs 10000 Pairs

Rate (Rs.) 20/dcm 50/dcm 60/pair 50/mtr 85/pair 35/pair 10/pair Total

Value (Rs.) 3375000 4687500 562500 60000 796875 328125 100000 9910000

D) Other contingent expenses (PER MONTH)

SI.No. 01. 02. 03. 04. 05. 06. 07. 08. 09. 10.

Item Rent Postage and Stationery Repairs and Maintenance Storage Expenses Transport Charges Advertisement and Publicity Taxes Insurance Sale Expenses Misc.Expenses Total

Amount (Rs.) 15000 15000 15000 3000 7500 12000 6000 15000 15000 9000 112500

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TOTAL CAPITAL INVESTMENT

1). Fixed capital 2). Working capital

Rs. 6555000 Rs. 5509500

TOTAL CAPITAL INVESTMENT

Rs. 12064500

SOURCES OF FINANCE

In this firm, finance will be generated 80% from owned capital and 20% from borrowed capital.

Owned capital Borrowed capital TOTAL

Rs. 8211600 Rs. 2052900 Rs. 10264500

Contribution of owned capital between different partners can be divided into the ratio of 40%, 20%,20% and 20% as 1). MAYANK GOL 2). KAUSHAL DHADUK 3). MOHIT BHAGDEV 4). HARDIK BOGHARA (40%) (20%) (20%) (20%) Rs 3284640 Rs. 1642320 Rs. 1642320 Rs. 1642320

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DEPRECIATION

NO 01. 02. 03.

PARTICULARS Machinary Furniture Wooden last

RATE 10% 10% 12.5% Total

1STYEAR 240000 9600 13500 263100

2ND YEAR 3RD YEAR 270000 10800 15130 295930 300000 12000 16875 328875

SALES FORECAST

Year

Utilized capacity

Production

Sales

Selling Price 113

Amount

1st

70.00%

90000

90000

10170000

2nd

78.75%

101250

101250

113

11441250

3rd

87.50%

112500

112500

113

12712500

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FIXED AND VARIABLE COST SCHEDULE

Fixed cost

No 1 3 4 5 6 7 Depreciation

Particular

Amount 564450 1810800 126000 216000 180000 54000

Interest on total investment Salaries Other expenses Rent for one year Insurance TOTAL

2951250

FCPU = Total Fixed cost Units. Sold = 2951250/90000 = 32.79

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Variable cost

No 1 2 3 4 5 Raw-material

Particular

Amount 5085000 1350000 540000 495000 369000

Other Contingent Expenses Utilities Other material Staff & Labour TOTAL

7839000

VCPU

Total Variable Cost Units. Sold

= =

7839000/90000 Rs.87.1

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PROJECTED COST SHEET

Particulars *PRIME COST

2011-12

2012-13

2013-14

Opening material

Stock

Of

Raw-

Add: Purchase Less: Closing Stock Of RawMaterial RAW-MATERIAL COST Direct Wages Power 20 HP

4068000 -

4576500 -

5085000 -

4068000 162600 288000

4576500 181925 324000

5085000 203250 360000

Domestic light

115200

129600

144000

Water Charges

28800

32400

36000

PRIME COST

4662600

5244425

5828250

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*FACTORY OVERHEADS

Storage Expenses

28800

32400

36000

Repairs and Maintenance

144000

162000

180000

DEPRICIATION ON:

Machinery

240000

270000

300000

Furniture, Tools & Equipment Wooden lasts

9600

10800

12000

13500

15185

16875

TOTAL FACTORY OVERHEADS *OFFICE EXPENSES

435900

490385

544875

Rent

144000

162000

180000

Salary

51000

57375

63750

Postage and Stationery

144000

162000

180000

Taxes

57600

64800

72000

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Insurance 144000 162000 180000

Misc.Expenses

86400

97200

108'000

TOTAL OFFICE EXEPENSES

627000

705375

783750

*SELLING & DISTRIBUTION OVERHEADS

Transport Charges

72000

81000

90000

Advertisement and Publicity

115200

129600

144000

Sale Expenses

144000

162000

180000

TOTAL SELLING & DISTRIBUTION OVERHEADS

331200

372600

414000

TOTAL COST

6056700

6812785

7570875

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PROJECTED FINANCIAL ACCOUNT (70%)

Trading A/c of SMART INDUSTRY for the year 2011-12

Particulars Opening balance Purchase of R.M. Wages Power- 20HP Domestic Light Water Charges Gross Profit

Amt.

Particulars

Amt. 10131600 240000

------- Sales 4068000 Closing balance 213600 288000 115200 28800 5658000 10371600

10371600

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Projected Profit & Loss A/c of SKY PRODUCTSS for the year 2011-12

Particulars Salary Rent Postage & Stationery Repair & Maintenance Storage Expense Advertisement Sales Expense Misc. Expense Depreciation Bank Interest Interest on partners capital Insurance Transport Charges Taxes Net Profit

Amt.

Particulars

Amt. 5658000 1448640

213600 Gross Profit 144000 Interest on investment 144000 144000 28800 115200 144000 86400 120480 347457 675612 144000 72000 57600 4669491 7106640

7106640

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Balance Sheet of SKY PRODUCTSS for the year 2011-12

Liabilities Capital: Mayank Gol Kaushal Dhaduk Mohit Bhagdev Hardik Boghara

Amt.

Assets Fixed Assets:

Amt.

3284640 Land and building 1642320 Machinery 1642320 Furniture 1642320 Wooden Last Storage Facility

3000000 2400000 96000 108000 720000 348000 1200000

Net profit

4669491 Other Investment

Current Liabilities: 12% Loan

Current Assets: 240000 Debtors Cash Bank Bills Receivable Closing stock 13121091 3229491 720000 3306231 453369 240000 1312109 1

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PROJECTED FINANCIAL ACCOUNT (78.75%)

Trading A/c of SKY PRODUCTSS for the year 2012-13

Particulars Opening balance Purchase of R.M. Wages Power- 20HP Domestic Light Water Charges Gross Profit

Amt. 240000 Sales

Particulars

Amt. 11398050 270000

4576500 Closing balance 240300 324000 129600 32400 6125250 11681550

11681550

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Profit & Loss A/c of SKY PRODUCTSS for the year 2012-13

Particulars Salary Rent Postage & Stationery Repair & Maintenance Storage Expense Advertisement Sales Expense Misc. Expense Depreciation Bank Interest Interest on partners capital Insurance Transport Charges Taxes Net Profit

Amt.

Particulars

Amt. 6125250 1629720

240300 Gross Profit 162000 Interest on investment 162000 162000 32400 129600 162000 97200 135540 390890 760063

162000 91000 64800 5013177 7754970 7754970

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Balance Sheet of SKY PRODUCTSS for the year 2012-13

Liabilities Capital: Mayank Gol Kaushal Dhaduk Mohit Bhagdev Hardik Boghara Net profit

Amt.

Assets Fixed Assets:

Amt.

2305940 Machinery 1152970 Furniture 1152970 Wooden Last 1152970 Storage Facility 5013177 Other Investment

2700000 108000 121500 810000 54007 1350000

Current Liabilities: 12% Loan

Current Assets: 350030 Debtors Cash Bank Bills Receivable Closing stock 11128057 675000 810000 3719510 510040 270000 11128057

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PROJECTED FINANCIAL ACCOUNT (87.50%)

Trading A/c of SKY PRODUCTSS for the year 2013-14

Particulars Opening balance Purchase of R.M. Wages Power- 20HP Domestic Light Water Charges Gross Profit

Amt. 270000 Sales

Particulars

Amt. 12664500 300000

5085000 Closing balance 267000 360000 144000 36000 6802500 12964500

12964500

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Profit & Loss A/c of SKY PRODUCTSS for the year 2013-14

Particulars Salary Rent Postage & Stationery Repair & Maintenance Storage Expense Advertisement Sales Expense Misc. Expense Depreciation Bank Interest Interest capital Insurance Transport Charges Taxes Net Profit on partners

Amt.

Particulars

Amt. 6802500 1810800

267000 Gross Profit 180000 Interest on investment 180000 180000 36000 144000 180000 108000 150600 434322 844515

180000 90000 72000 5566863 8613300 8613300

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Balance Sheet of SKY PRODUCTSS for the year 2013-14

Liabilities Capital: Mayank Gol Kaushal Dhaduk Mohit Bhagdev Hardik Boghara Net profit

Amt.

Assets Fixed Assets:

Amt.

4105800 Land and building 2052900 Machinery 2052900 Furniture 2052900 Wooden Last 5566863 Storage Facility Investment

3750000 3000000 120000 135000 900000 1500000

Current Liabilities: 12% Loan

Current Assets: 300000 Debtors Cash Bank Bills Receivable Closing balance 16131363 1171863 975000 4132788 686712 300000 16131363

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Sky Products Schedules For Overheads

SCHEDULE FOR WRITTEN DOWN VALUE OF FIXED ASSETS

Particular

Rate

Net Block

Year 1 Land Building Machinery Furniture & Fixture Electrification Installation Charges Telephone Computer Trolley & other equipments 10% 15% 10% 10% 10% 60% 10% 50,00,000 67,50,000 11,39,000 1,80,000 4,50,000 9,000 24,000 13,500

Year 2 50,00,000 60,75,000 9,68,150 1,62,000 4,05,000 8,100 9,600 12,150

Year 3 50,00,000 54,67,500 8,22,927 1,45,800 3,64,500 7,290 3,840 10,935

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Sky Products
SCHEDULE FOR FACTORY OVERHEADS

Particular Repairs Wages Depreciation on Machinery Depreciation on Building Insurance Fuel

Year 1 80,000 7,95,600 2,01,000 7,50,000 15,000 36,000

Year 2 80,000 7,95,600 1,70,850 6,75,000 15,000 36,000

Year 3 80,000 7,95,600 1,45,223 6,07,500 15,000 36,000

Total 18,77,000 17,72,450 16,79,323

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Sky Products
SCHEDULE FOR ADMINISTRATIVE OVERHEADS

Particular Salary Postage & Telegram Telephone Miscellaneous Exp. Insurance Expenses Medical Expenses Professional Tax Legal Expenses Audit Fees Depreciation Interest on Owned Capital Electricity

Year 1 2,96,300 22,000 32,000 44,000 75,000 46,500 1,800 24,000 35,500 1,08,500 9,55,500 36,000

Year 2 2,96,300 22,000 32,000 44,000 75,000 46,500 1,800 24,000 35,500 79,650 9,55,500 36,000

Year 3 2,96,300 22,000 32,000 44,000 75,000 46,500 1,800 24,000 35,500 64,485 9,55,500 36,000

Total

17,40,400

17,11,550

16,96,385

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Sky Products
SCHEDULE FOR SELLING OVERHEADS

Particular Advertising Exp. Traveling Exp.

Year 1 62,000 63,000

Year 2 62,000 63,000

Year 3 62,000 63,000

Total

1,25,000

1,25,000

1,25,000

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Sky Products

Financial Analysis

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Sky Products

Cost of Production

No. 1 2

Particular Total recurring cost per year Depreciation on machinery @ 10%

Amount 7068000 300000

3 4 5

Depreciation on furniture, tools & equipment @10% Depreciation on wooden last @ 12.5% Interest on total investment @ 15% TOTAL

12000 16875 1810800 9207675

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Sky Products

Turnover
Sales 112500 Selling price 113 Amount 12712500

At 70% utilization

Quantity: In Value:

90000 Pairs Rs. 10170000/-

At 78.75% utilization

Quantity: In Value:

101250Pairs Rs.11441250 /-

At 87.50% utilization

Quantity: In Value:

112500 Pairs Rs. 12712500 /-

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Sky Products

Profitability Analysis

1).PROFIT:-

Annual turnover Less: Cost of production

Rs. 12664500 Rs. 9247800

PROFIT

Rs. 3416700

2).PROFIT AFTER TAX:-

Profit Less: Tax (50%)

Rs. 3416700 Rs. 1708350

NET PROFIT

Rs. 1708350

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Sky Products

3). RATE OF RETURN:-

Rate of Return =

Net profit X 100 Total capital investment = 1708350 X 100 3072000

55.61%

4). NET PROFIT RATIO:-

Net Profit Ratio =

Net profit X 100 Sales

1708350 X 100 12664500

13.49%

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Sky Products

BEP Analysis
Particulars Sales (113 * 112500) Less : Variable Cost Contribution Less : Fixed Cost Profit Amount 12712500 7839000 4873500 2951250 1922250

B.E.P. ( IN UNITS ) :

Total Fixed cost Contribution per unit

2951250 43.32

68126 units

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Sky Products

P.V. Ratio

Contribution X 100 Sales

4873500 12712500

38.34%

B.E.P. (in Rs.)

Total Fixed cost P.V. Ratio

2951250 38.34%

7697574 /- Rs.

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Sky Products

Risk Factors

1.

Change in government policies for this type of

industries may affect the organization positively or negatively accordingly, as profit may increase or decrease due to governments intervention.

2.

There is always risk of competition from existing

& potential units. But to avoid this risk, cost reduction through ideal utilization of resources, use of good quality of raw materials etc will be helpful.

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Sky Products Raw Material Suppliers

1) M/s. Akshar Trade Ink.

Address:

Giriraj Complex, 25, Karanpara Corner Karansinhji Main Road, Rajkot.

Phone:

2232433

E-mail: giripoly@sancharnet.in

2) Murlidhar Polymers

Address:

Giriraj Complex, 25, Karanpara Corner Karansinhji Main Road, Rajkot.

Phone:

2232433 / 2232666.

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Sky Products Machinery Suppliers

Our unit will purchase machinery from following supplier.

1) Polymechaplast Machine Ltd.

Address: Gold Coin House, 775, GIDC, Makarpura Vadodara 390 010.

Web site: www.polymechplast.com

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Sky Products

Future Prospectus

72

Sky Products Future Prospectus

Each and every unit has its own dreams and plans. The company are always engaged in the activities that how they can achieve bright future and for that planning is a must. We are going to establish a Sky Products industry. We will produce 1 litre plastic bottles. We are sure that this unit will definitely get estimated profit. After some years we will introduce/produce one another product i.e. Plastic Container with its existing product so we can say that this is our future plan for our organization.

In Sky Products, all the members come together and decide some challenging activities and set them as a goal to be achieved in near future. Following are some of the future plans: 1).To captures maximum market. 2). Optimum utilization of resources. 3). to create goodwill. 4). Development of various branches all over the world. 5). to get more profit.

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Sky Products

Conclusion

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Sky Products

Conclusion

This firm is an emerging firm having bright future. Today most of the people are getting conscious (alert) about fashionable products. This firm tries to satisfy such class of people by providing fashionable water or any other bottles. As an Entrepreneur, I see high market potentiality and bright career of the firm. At last I hope that all the live factor work with great efficiency and co-ordination, all the other resources are utilized at maximum capacity and united efforts are made to achieve all the predetermined set of goals.

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Sky Products

Bibliography

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Sky Products

Bibliography

Serial No. 1.

Book/Site Name

Author/Provider

www.polyplast@india.com

Polyplast(india)Ltd.

2.

Marketing Management

Philip Kotler

3.

Finance Management

I. M. Pandey

4.

Manufacturing & Material Management

M. R. Patel

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