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INDEX
SR. NO. 1 TITLE INTRODUCTION PAGE.NO

MARKET POTENTIAL

TECHNICAL ASPECTS

PLANT CAPACITY

IMPLEMENTATION SCHEDULE

FINANCIAL ASPECTS

HUMAN RESOURCE ASPECTS

LIST OF LICENCE OR PERMISSION FROM GOVERNMENT PROJECT EXPERIENCE

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BIBILIOGRAPHY

1. Introduction:-

a. Organisation vision & mission:Vision: To become a Leading wholesalers in India by offering technically superior products & services and qualitative after sale service thus enhancing the quality of life of every consumer, through an engaged team. Mission- our mission is to create value by providing superior products and services to our customers in transmission and distribution of electricity market.

Product Detail
GLS CLEAR LAMPS GLS CLEAR MUSHROOM LAMPS GLS MILKY LAMP SPECIAL LAMPS (Colouring Lamps) HALOGEN LAMPS COMPACT FLUORESENT LAMPS CFL DIRECT FIT

Photograph of Machinery or instrument

2.Market potential:-

Ways to reach and cover the market:

Public relations:Through public relations i.e. sponsoring in various events, programs the awareness for our wholesaling business is undertaken and the potential customers are thus attracted. Branding:-

Advertising, print advertising, broadcast advertising and banners are use to increase our customer base. Phone calls:Targeted list of potential customers with their contact details is maintain and the new updates, offers and schemes are conveyed to them. Also the orders are largely received through the phone calls medium.

Website:Online advertising, Site designs are the mediums use to reach, inform, attract and maintain the new and existing customer base. Email:One to one e-mails to selected customers, and One too many e-mails to general group of customers are send to reach them.

Market area:A market area is a geographic area containing the people who are likely to purchase a firm's goods or services.

Marketing system:Wholesaling:We are the dealers of Crompton greaves appliances. The various appliances like Crompton greaves lights, blubs, fans, electric motors are received by us through dealership and these appliances are sold by us to various local retailers.

Number of staff members included in marketing department:Basically, two marketing members are hired by us for the purpose of marketing. The marketing functions undertaken by them is to design site and making required updates, online advertising, sending E-mails to customer and informing them regarding various schemes and offers available.

Advertising pictures for marketing:Various leaf lets, pamphlets and broachers are printed and distributed for advertising purpose.

VISITING CARD

3.PLANT CAPACITY
a. Location and site address Location: DELHI GATE; SURAT.395003 Site: G-80, JAPAN MARKET; DELHI GATE, SURAT,395003 b .Plant layout:
Accountant office

Entry & exit GODOWN

Head office

Marketing and sale promotion department

SELLING DEPARTMENT

Entry & exit OF CUSTOME R AND EMPLOYEE S

Waiting longue

c. PROCESS PROCESS FLOW DIAGRAM

PLACE AN ORDER WITH THE COMPANY

RECEIVE ORDER AND KEEP IT IN GODOWN

MAKE PAYMENT OF ORDER

GET ORDERS FROM RETAILERS

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SEND AN ORDERED PRODUCT AND GET CHALAAN SIGNED BY RETAILER

SEND BILL TO RETAILER THROUGH COURIER

MAKE COLLECTION OF AMOUNT AFTER CREDIT PERIOD OF ONE MONTH

d. POLLUTION CONTROL Proper dustbin and sewage system is provided for disposal of waste like broken bulb, naked wires, and other defective materials which cannot be used and are harmful. e. Power fuel gas supply: Power: electricity is used i.e. 1300 units per day so total yearly consumption is 1300*25*12=975000 units Fuel: fuel is used for transportation via tempo

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Fuel consumption on yearly basis is 1800 litres i.e. 6litres per day f. Technology I. Computers: Technology used is computer i.e. we have provided system of online order and payment for our distant customers apart from that we are using specific software called SAP for receiving and executing order. II. C.C T.V camera:
For security purpose and for having check on the companys employees we have installed c.c TVs cameras at main locations like entry and exit, departments etc.

g. Communication system:
As a medium trading firm we are not required high-tech communication requirement. So we are communicating with manager and customers through cell-phone or BSNL telephone and internet only. And we are also getting orders through letters and online and in response quotation is also sent through letters and online only. So here for communications telephone internet and letters are mainly used.

h. Transport facility of goods: We receive out material from factory via trucks and To supply our product bulbs etc as per orders we deals with small tempos which are easy transport facility as they can easily reach at any place in city and industrial areas also.

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i. Other common facilities: We have provided air conditioned office departments, separate generator and invertors for overcoming the risk of power failure apart from this we have accommodated a small waiting seats for customers along with magazines for them. j. Value addition For extra value than competitor we are providing customers with warranty period of minimum 6 months, smart safe packing of product apart from packing received from industry, bulbs and lights are of extra brightness.

4. IMPLEMENTATION SCHEDULE

Task 1. Selection of working shed 2. Formation of company 3. Preparation of feasibility report 4. Registration with trading firm 5. Arrangement of finance 6. Applying for loan

April May June July

August Sept Oct

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7. Term loan sanctioned 8. Procurement of equipments 9. Arrangement of equipments and other facilities 10. Purchasing orders from different industries 11. Recruitment of manpower 12. Selection of marketing channel 13. Starting the trading activity

5. Financial aspects (3 year projections)

Projected Cost and means of finance for CROMPTON GREAVES LTD.

sr.no 1

cost of project Fixed assets Computer Land

Amount 4610000 90000 4520000

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working capital requirement total cost of project

444208 5054208 Amount 2000000 3054208 5054208

sr.no 1

means of finance term loan own capital total means of finance

Projected Balance sheet for CROMPTON GREAVES LTD.

Particulars Liabilities: Capital Secured Loan Working capital facility Other Liabilities

2013-14

2014-15

2015-16

160000

520000

1130000

1600000 0 364125

1200000 0 412250

800000 0 455125

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Total Liabilities Assets: Gross Block Depreciation Net Block Investment Current assets Cash and Bank Balances Misc. Expenses to the extent not written off

2124125 90000 13500 76500 10000 808333 1229292 0

2132250 90000 11475 78525 20000 973333 1060392 0

2385125 90000 9753.75 80246.25 30000 1097500 1177379 0

Total Assets 2124125 2132250 2385125 Projected Profitability statement for CROMPTON GREAVES LTD. Particulars 2013-14 2014-15 2015-16

Cost Of Production 350000 opening stock Purchase 4200000 4750000 Trading Expense 237500 274700 Total Cost of 4437500 5374700 Production Gross Profit Gross Profit Ratio 712500 1159467 12.955 16.73

395833 5250000 297970 5943803 1538697 19.43

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Selling & Administrative Expense Depreciation Profit before Interest & Tax less : interest on term loan Profit before tax provision for Tax Profit after Tax net profit ratio Depriation added back NET Cash Accruals

301950 13500 397050

437700 11475 710292

495550 9753.75 1033393 122000 911393 273417.9 637975 8.06 9753.75 647729

218000 170000 179050 540292 53715 162087.5 125335 378204 2.2788 5.457 13500 138835 11475 389679

Annexure or schedules for CROMPTON GREAVES LTD. for balance sheet and profitability statement

schedule # 01 FOR CALCULATION

OF ANNUAL SALES

Particular Orders Received Per Day No. of days in a Month

2013-14 2014-15 2015-16 1000 1100 1200 25 25000 25 27500 12 330000 25 30000 12 360000

No. of Month estimated units

11 275000

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estimated sales price per unit expected annual sales

20 5500000

21 6930000

22 7920000

schedule # 02 FOR CALCULATION OF OTHER TRADING EXPENSES Particular 2013-14 2014-15 2015-16

Particulars Octroi Electricity Cost Labour charges

20132014 1000

20142015 1100

20152016 1210

99000 111600 122760 137500 162000 174000

schedule # 03 FOR

Calculation of Selling & Admintrative expense

Particular Account Fees Bank charges Commision Transportation Expense Telephone Expense 2013-14 2014-15 2015-16 5000 5500 6050 500 275000 11000 5500 500 346500 13200 66000 500 396000 14400 72000

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Trackon Couriers Pvt. Ltd Total

4950 301950

6000 437700

6600 495550

schedule # 04 FOR Calculation of Depreciation Working for I T Purpose Particular Capacity Utilization Machinery addition in machinery(3 computers being purchased) Total Less: Depreciation @ 15% Closing WDV Total Depreciation Written Down Value at the End of the year schedule # 05 FOR Calculation of Interest on Term Loan, Working Capital & Others Particular TERM LOAN FOR POWER LOOMS At Beginning of the year Less: Repaid During The Year Closing Balance During The 2013-14 2014-15 2015-16 2013-14 2014-15 76500 90000 90000 13500 76500 13500 76500 2015-16 65025

76500 11475 65025 11475 65025

65025 9753.75 55271.25 9753.75 55271.25

2000000 1600000 1200000 400000 400000 400000 800000

1600000 1200000

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year Rate of interest Interest on Term Loan (Average) Total Interest Cost 12% 218000 218000 12% 170000 170000 12% 122000 122000

Assessment of working capital requirement for CROMPTON GREAVES LTD.

Particulars PERIOD 2013-14 2014-15 2015-16

current assets (a)Inventories (b) Sundry Debtors( assuming that 1 month is credit period) (c) Cash and Bank Balances total current assets (A)

30 350000 458333 0 808333 395833 577500 0 973333 437500 660000 0 1097500

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current liabilities (a)creditors for goods (b) wages and salary expenses to be paid total current liabilities(B) working capital (A-B) 350000 14125 364125 444208 395833 16417 412250 561083 437500 17625 455125 642375

Projected Cash flow statement

Particular Sources of Fund 2013-14 2014-15 2015-16

Cash Accruals [viz. Net profit before tax (item H of Annx. - V) to which shall be added interest (item F of Annx. - V ) Increase in Long Term Loans/Debentures Others (Trade Creditors) Capital inroduced during the year

356835 2000000 364125 54200

559679

116875

81292

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Total Sources(A) Dispositation of Funds Drawings Increase in Capital Expenditure Increase in Current Assets 1. Sundry Debtors 2. Inventories 3. Loans & Advance Repayment of Term Loan Investment Interest Disposition (B) Opening Balance Net Surplus (A-B) Closing Balance

2775160 19535 90000

676554 18204

851020 27975

458333 350000 0 400000 10000 218000 1545868 0 1229292 1229292

119167 0 0 400000 10000 170000 717370.7 1229292 -40816 1188475

82500 0 0 400000 10000 122000 642475 1188475 208545 1397021

Calculations of significant ratios

Current Ratio
Particulars 2013-14 2014-15 2016-17 CURRENT RATIO = Current Assets/ Current Liabilities 808333 973333 CURRENT ASSETS (A) 364125 412250 CURRENT LIABILITIES (B) (Including Bank's Working Capital Finance) 2.22 2.36

1097500 455125

CURRENT RATIO = (A/B)

2.41

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Debt- Equity ratio

Particulars 2013-14 2014-15 Debt- equity ratio=long term debt/capital Total long term A debt 16,00,000.00 12,00,000.01 Capital + reserves B 17,60,000.00 17,20,000.17 2016-17

8,00,000.01 19,30,000.22

Debt equity ratio(A/B) (Treating unsecured loans as debt) 0.91 0.70 0.41

Debt service coverage ratio

Particulars Net Profit after Tax + Depreciation + Non Cash flow items Add: Interest on Term Loan Total (A) Term Loan Repayment (B) D.S.C.R. (A/B) Interest Coverage Ratio (A/Interest on Term Loan) 2013-14 2014-15 2016-17

1,38,835 2,18,000 3,56,835 400000 0.89 1.64

3,89,679 1,70,000 5,59,679 400000 1.40 3.29

6,47,729 1,22,000 7,69,729 400000 1.92 6.31

Repayment schedule for secured loan

no of opening months balance

A

interest
B

loan installment
C

Repayment interest
D

closing Balance
A+B-C-D

2000000 1 1966667 2 1933333 3 1900000 4

20000 19666.67 19333.33 19000

33333.333 33333.333 33333.333 33333.333

20000 19667 19333 19000

1966667 1933333 1900000 1866667

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1866667 5 1833333 6 1800000 7 1766667 8 1733333 9 1700000 10 1666667 11 1633333 12 1600000 13 1566667 14 1533333 15 1500000 16 1466667 17 1433333 18 1400000 19 1366667 20 1333333 21 1300000 22 1266667 23 1233333 24 1200000 25 1166667 26 1133333 27 1100000 28 1066667 29

18666.67 18333.33 18000 17666.67 17333.33 17000 16666.67 16333.33 16000 15666.67 15333.33 15000 14666.67 14333.33 14000 13666.67 13333.33 13000 12666.67 12333.33 12000 11666.67 11333.33 11000 10666.67

33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333

18666.66668 18333.33335 18000.00002 17666.66669 17333.33336 17000.00003 16666.6667 16333.33337 16000.00004 15666.66671 15333.33338 15000.00005 14666.66672 14333.33339 14000.00006 13666.66673 13333.3334 13000.00007 12666.66674 12333.33341 12000.00008 11666.66675 11333.33342 11000.00009 10666.66676

1833333 1800000 1766667 1733333 1700000 1666667 1633333 1600000 1566667 1533333 1500000 1466667 1433333 1400000 1366667 1333333 1300000 1266667 1233333 1200000 1166667 1133333 1100000 1066667 1033333

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1033333 30 1000000 31 966667 32 933333 33 900000 34 866667 35 833333 36 800000 37 766667 38 733333 39 700000 40 666667 41 633333 42 600000 43 566667 44 533333 45 500000 46 466667 47 433333 48 400000 49 366667 50 333333 51 300000 52 266667 53 233333 54

10333.33 10000 9666.667 9333.333 9000 8666.667 8333.333 8000 7666.667 7333.333 7000 6666.667 6333.333 6000 5666.667 5333.333 5000 4666.667 4333.333 4000 3666.667 3333.333 3000 2666.667 2333.334

33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333 33333.333

10333.33343 10000.0001 9666.666767 9333.333437 9000.000107 8666.666777 8333.333447 8000.000117 7666.666787 7333.333457 7000.000127 6666.666797 6333.333467 6000.000137 5666.666807 5333.333477 5000.000147 4666.666817 4333.333487 4000.000157 3666.666827 3333.333497 3000.000167 2666.666837 2333.333507

1000000 966666.7 933333.3 900000 866667 833333.3 800000 766666.7 733333.3 700000 666666.7 633333.3 600000 566666.7 533333.3 500000 466666.7 433333.3 400000 366666.7 333333.3 300000 266666.7 233333.4 200000

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200000 55 166667 56 133333 57 100000 58 66667 59 33333 60

2000 1666.667 1333.334 1000 666.6669 333.3335

33333.333 33333.333 33333.333 33333.333 33333.333 33333.333

2000.000177 1666.666847 1333.333517 1000.000187 666.6668567 333.3335267

166666.7 133333.4 100000 66666.69 33333.35 0.019667

6.Human resources requirement Man power requirement with department wise:Sr. No. 1 2 3 4 5 Designation Promoters Sales person Accountant Labours Total manpower requirement No. of persons 3 2 1 2 8

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7.Project experience: Gainings from project: Gained Knowledge about the project topic undertaken. Learnt various financial calculations necessary for project implementation and functioning well. Learning of analysis of various financial statements and ratios is really very helpful and important. Learnt that mere preparation of profit and loss and balance sheet is of no use, its main crux lies in proper analysis and interpretation. Experience in project management: Its a very good experience in project management. Although many hurdles faced while preparing the project management assignment, the knowledge gained is indeed helpful for practical life. Lecture achievement: Not only Academic syllabus coverage is made available to us but also the conceptual clarity with help of varied

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related practicle life stories, videos ( video on guru movie) are indeed the tools to inspire our interest. Experience: Altogether its indeed a very good experience while working on project management under the guidance of sir- Nikunj shah Suggestions: Good command over the syllabus coverage. The best part is relating concepts with stories and videos. Along with educational guidance, knowledge regarding practical life is indeed inspiring and helpful.