Shri J. H. Bhalodia Women's College, Rajkot: Product Project Report

Shri J. H.
Bhalodia Womens College,

Rajkot
PRODUCT PROJECT REPORT
PREPARED BY
NAME
: Ravat Sunita D
CLASS
: B.B.A. Sem-5
ROLL NO.
: 45
SEAT NO.
ACADEMIC YEAR
: 2015-2016
GUIDED BY
: Prof. Ramesh Dangar
SUBMITTED TO
: Saurashtra University
DECLARATION
1
I Under sign, Ravat Sunita D. a student of B.B.A. Sem-V for the

academic year 2015-16 of Shri J.H. Bhalodia womens College, Rajkot, hereby
declare that this project report is my own work & has been done under the
guidance of Prof. dangar sir
This work has not been previously submitted to any other
university for any other examination.
Date: Place: - Rajkot
Signature
-----------------Ravat Sunita D
PREFACE
2
B.B.A. course is a special course, which prepares young entrepreneurs,

& its very essential that they should have the basic knowledge about how the
small scale business can be started or which type of project is to be submitted to
the banks and other financial institution for the purpose of loan.
One of the subjects namely entrepreneurship and management of small
scale business has covered this aspect with a view to create and develop
entrepreneurial skill among the students.
Today in the growth rate of Indian economy, S.S.I. plays a vital role by
contribution of 40%, to the total national income.
Hence, university has included preparation of such project within the
preview of its syllabus.
ACKNOWLEDGEMENT
It is really a matter of great pleasure for me to present their creative and
practical work. At this stage product every entrepreneur prepares report of
learning and it before starting of actual production.
I would like to express my deep gratitude to prof. Ramesh Dangar for his
co-operation and guidance. Without his support my report would have been very
difficult to complete.
I am also thankful to all those who consisted me in preparation of the
manuscript. I would like to thank my brother who helped me in this project.
PLACE: - RAJKOT
-------------------
(Ravat Sunita D)
DATE :-
Sr.no
Particular
Page
no.
1.
General information
2.
Production Department
18
3.
Human Resources Department
31
4.
Marketing Department
37
5.
Financial Department
46
6.
Risk factor
86
7.
SWOT Analysis
88
8.
Future Plan
90
9.
Conclusion
92
10.
Bibliography
94
MAIN INDEX
INDEX
Sr no.
Particular
Pg no.
1
2
Introduction to small scale industry

Project at a glance
3
4
5
6
7
8
9
Personal detail or partners detail

Implementation schedule
Size of unit
Form of organization
Justification of location
Organisation structure
Plant Layout
10
12
13
14
15
16
17
INTRODUCTION TO SMALL SCALE INDUSTRY

The business system of a country is divided into three sectors
A. Large scale industry
B. Medium scale industry
C. Small scale industry
This classification of industry may be based on a number of

criteria, e.g. the number of persons employed, the amount of capital investment,
type of management, etc. A small scale industry is defined in India as A
business unit employing less than 50 persons if using power and less than 100
persons without using power and having fixed capital not exceeding 3crores.
Small-scale industries thus have a vital role to play in the economic
development of a country like India.
PROJECT AT A GLANCE
SR NO.
TOPICS
CONTENTS
1.
Name of the unit
I-cool pvt ltd.
2.
Location
3.
Form of organization
I-cool pvt ltd.

Plot No S-502,
Laxmi nagar main road -Rajkot
Gujarat.
Partners ship
Size of organization
Small scale industry
Partner name
Sunita D ravat
S.S.I. Reg. No
Ravi D ravat
Applied for
Name of the product
Cold drinks
Weakly off
Wednesday
S.S.I. Reg. No
Applied for
10
No of employee
12
11
Source of finance
50:50
60% owned capital
8
40% borrowed capital

12
Accounting year
13
Telephone no
14
E-mail Address
1 April to 31 March
02876 (312712)
Sunitaravat987@gmail.com.
PATNER 1
1.
Name
Sunita Ravat D.
Address
Nr. Kamdar garbi mandal

Qu.No. 61
To:- veraval. Distic :- somnath
Age
20 years
Qualification
BBA with Finance Management.
Experience
Fresher
Financial Contribution
50%
Responsibility
I handle Production and marketing
Email Address
Sunitaravat987@gmail.com
PATNER 2
1
Name
Ravi Ravat D.
Address
Nr. Kamdar garbi mandal

Qu.No. 61
To:- veraval. Distic :- somnath
Age
21Years
Qualification
MBA with Finance Management.
Experience
Fresher
Financial Contribution
50%
Responsibility
I handle H.R. and Finance Department
E-mail Address
ravatravi@gmail.com
10
IMPLEMENTATION SCHEDULE
Sr. No.
Particular
1.
Project ideas and project report preparation
Months
month
2
3
and revision
SSI registration and other Legal formalities
Approval of load from the financial
1 month
month
4
5
6
7
institution
Installation of Plant and Machinery
Furniture & Fixture
Appointment of staff/workers
Total pre-operative time period required*
3 month
month
month
6 Month
(* Note: Certain tasks in the above list can be simultaneously performed)
SIZE OF UNIT
11
In every country government adopts a different policy for measuring the

size of the unit in the new policy government adopt investment measuring
policy on the basis of capital investment the industry can be divided into three
part.
Small scale industry:Medium scale industry:Large scale industry:-
Small scale industry:The industry whose investment is plant & machinery less then 3crores is
known as small scale industry.
Medium scale industry:In this type of industry the investment is more than 3 crores.
Large scale industry :In a large scale unit the investment is more than 10 crores above.
FORM OF THE ORGANIZATION
12
The main object with any business concerns are started is to earn
maximum profit by engaging capital, labor, machineries and materials optimum.
There are four main form of organization which is as under.
Sole proprietorship
Partnership
Co-operative society
Company
1. Private company
2. Public company
JUSTIFICATION OF LOCATION
Location plays an important role in starting industry. Before
starting any industry entrepreneurs have to take a decision about the location of
industry. They have to select that location where all the facilities must be
available. They have to take right decision about the selection of location
13
because once a location selected it cannot be change in the near future. The
following should be taken into consideration.
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 labour :Without manpower no one can start his or her industry. If you have a
machine but not manpower you can not start your industry. So, labour should be
available at cheap rate.
3. Availability of transport :It required for assembling of raw-material and distribution of finished
product. So, all type of transportation facility should be available.
ORGANIZATION STRUCTURE
14
PLANT LAYOUT
Plant layout may be defined as technique of locating
different machines & plant services within the factory. So that, the greatest
possible output of high quality at the lowest possible cost can be available. The
main factors that should be consider, while selecting plane layouts are, type of
product, volume of production, production system, type at machine, possibility
of future expansion etc. There are mainly 3 types of plant layout i.e. product
layout, process layout and project layout.
In I-COOL COLD DRINKS the plant layout that has
been adopted is Process Layout because the production process is job process.
In process layout every department has special kinds of machines performing
same factors.
15
16
INDEX
Sr no.
1
2
3
4
5
6
7
8
9
Particular
Introduction
Product detail
Raw material detail
Raw material supplier name & address
Machinery & Equipment details
Machinery suppliers & address
Production process
Production capacity schedule
Quality control
INTRODUCTION
17
Pg no.
20
21
23
25
26
27
28
29
30
Production is regarded as the most important economic activity in the

present day in times of world economy. Production of any product is the base &
part of the business activity.
Production department consists of raw-material, labours, machineries etc.

Which converts the raw-material input to the finished product? This production
department is the heart of the firms workers and capital assets are engaged and
it is able to produce low cost products & superior quality in timely manners.
these all activities are carried out under production department.

The manager of the production department guides & handles all the activities of
production department.
18
PRODUCT DETAIL
Product: The product that our firm is going to manufacture is, Cold
drinks.
Its Use: The finished product of the proposed project is cold drinks. The
job passes through different manufacturing processes before it is converted into
finished product.
Cold drinks have wide use in general public as a drink. So, we can
say that there is wide scope of demand for the cold drinks.So, ultimately by
observation it can be said that there is wide use of cold drinks, which suggests
big demand in the market.
Brand: The brand name of our product is I-COOL.
19
PRODUCT PICTURES
RAW-MATERIAL
The raw material is the base for the production. The required
raw material is co2, assens, sulphuric acid, sytric acid, sytric, sugar, water.
20
The raw material of this unit is easily obtained from the market.
The raw materials required in this unit are:
co2
Assens
sulphuric acid
sytric acid
Sytric
Sugar
water
21
RAW MATERIAL SUPPLIER NAME & ADDRESS

1.) Mr. Nilesh sharma
Nilesh Kumar & Brother
Shop No- 1225,
New Navsari,
Delhi Darwaja,
Ahmedabad,
Gujarat.
2.) Mr. Rakesh Shah
Gopi Pvt.ltd.
Panchvati main road,
Ahmadabad 396171
Gujarat.
22
MACHINERY AND EQUIPMENT

Types of machinery are as follow the under:-
MACHINERY SUPPLIRES & ADDRESS

Name & Address of machinery & equipment suppliers:1. M/s Modern Mechanical Works,
1501, Qsim Jon Street,
Delhi 6
2
M/s Pharmaceutical Machinery Manufacturing Works,

23
Laxmi Nagar,
Industrial Estate,
Indore 4
3
M/s Cadmach Machinery Co. Pvt. Ltd.,

P.O. Box No. 9007,
Maninagar,
Ahmedabad 380 008
Local Market, Local Manufacturer, etc.
24
PRODUCTION PROCESS
1. Bottle cleaning:
In the manufacturing process of cold drinks first step is to cleaning the
bottle by putting water in it.
2. Passes through the filling machine:

After cleaning the bottle it passes through the filling machine where
mixture of assens, sugar and other material is put in it in certain quantity.
3. Putting co2 and water in bottle and cape the bottle:

This is the third step. In this step co2 and water is put in the bottle and
than cap the bottle is being done by machine.
4. Checking the bottle:

After capping the bottle it is being passes through the checking
defected bottle is being put in side.
5. Store housing:
Last step in process is storing the bottle in store house.
25
PRODUCTION CAPACITY SCHEDULE
Production capacity
60% utilization
Working days in a week
6 days
Working days in a month
25 days
Working days in a year
300 days
No. of shifts per day
Dual shift
QUALITY CONTROL
26
A continuous emphasis on new ideas through innovation

engineering from the customer to take feedback from the customers to take
optimum benefits of products is considered as their prime objectives.
To follow manufacturing method for reducing the cost in the system,
technical up-gradation of the resources is done.
27
28
INDEX
Sr.no
Particular
Page no.
Introduction
33
Employee Details
34
Industrial relationship
35
Employee benefit
36
29
INTRODUCTION
Personal management is concerned with the obtaining and

maintaining of satisfactory and satisfied work force
-Dr.George R.Terry
To accomplish the organizational objectives, this system of
various sub-system :such as (1)production (2) personal (3)marketing
(4)finance. If these resources are not talented or skilled , various problems may
arise, such as industrial fatigue, lack of efficiency, less productivity as compared
to the installed capacity, etc .to avoid such problems there should be proper
planning in respect of personal policies, personal rules and regulations, personal
training and development, so that organizational as well as personal objectives
can be achieved efficiency and economically.
30
EMPLOYEE DETAIL
They think that the best ideas are born, when the employees are given the
freedom, the environment and the training and opportunity to continuously
improve their skills. We are very proud to be providing this opportunity to all 12 of
their employees and that has resulted in the highest manpower retention and a very
healthy environment.
Number of Employees
In I-COOL COLD DRINKS there are total 12 workers are

working so the distribution of the workers according to their skills are as under:
Sr. No.
Employee
1.
2.
Skilled
Unskilled
Total
No. of
Employee
4
8
12
31
INDUSTRIAL RELATIONSHIP
In this industry industrial relation is good with their employees &
employer. And less competitors so that have good relation with others also.
We provide good salary to our employers according their work. we listen
our employees problem &try to solve their problem easily.
If industrial relation is good so that industry easily runs.
32
EMPLOYEE BENEFIT
Employees benefits and services are available for all employees the
purpose of it is to retain people in the organization and to stimulate them for
higher performance.
I cold industries give various benefit to their employees.
Casual leave:Each and every employee and officers get 8 days causal leave.
Medical leave:Medical leave are given as per the requirement . in case of special
medical leave half pay is also given.
33
34
INDEX
Sr.no
Particular
Page
no.
1
2
3
4
5
Introduction
Market potential
Market research
Channel of distribution
Pricing policy
39
6
7
Competitors
Sales forecast
44
40
41
42
43
45
INTRODUCTION
35
Marketing department is one of the most important factors in todays

management. Because of without a strong marketing department company cant
achieve its sales target. Thats why company cant achieve their objectives.
Marketing department should focuses on the various factors like
consumers needs, proper distribution channels, encourages the dealers etc. the
main objective of marketing department is to increase the sales volume of the
company.
MARKET POTENTIAL
36
Liberalization of the Indian Economy since July 1991 has given

boost to the industrial development all over the nation. It has given new spirit
to various industries in general and cold drinks industries in special.
Quality:
Our maximum emphasis is given on quality. The quality of our
product is not only competitive because we know that mere
competitiveness is not sufficient for validity. We always want to be one
step ahead from others.
Price:
The price of our product is affordable to middleclass people who are
our targeted market. Our unit understands value of money very well and
so high sales at low margins is our motto.
Advertising :
Advertising is an important element of marketing mix,
particularly of promotion mix. Advertising is a tool for communication. In
other words we can say that it is an art to create demand for product by
making people aware and pursuing them to purchase the product.
As our firm is still in the infancy stage and the market is limited,
it is not possible to bear the heavy expenditure on advertising. The product
is advertised on a small scale through big wall painting and banners in
different town and villages and in local newspapers and magazines.
37
MARKET RESEARCH
Market research is one of the most important parts of the marketing
management. Market means actual and potential customer market research
is the systematic and intelligent investigation or study of the who, what,
where, when, why and how of actual and potential buyer. If deals with
research on customer demand e.g. behavior and attitudes of consumers and
dealers at the market place, analysis of sales data, analysis of market share
of firm etc.
The following items of study and analysis are included in market research.
Size of the unit.
Geographic descriptions of customers.
Demographic descriptions of customers.
Market Segmentation.
Analysis of market demand.
Sales analysis.
Consumer needs & wants.
Dealers wants & Preferences.
CHANNEL OF DISTRIBUTION
38
Distribution Channel :
For distribution of our product to our valuable customers we have not to
choose any complex channel but we have adopted one level channel
involving only one intermediary i.e. retailers. This is only to ensure the
availability of our products on demand.
PRICING POLICY
Decision about pricing is consider important aspects for success
of marketing of any product for an organization pricing is the exchange
value of a product or services which is expressed in terms of money. There
are 4 factors which are as under
a. Estimated Demand
b. Competitive Reaction
c. Cost of production
d. Other Marketing Mix Element
39
COMPITITORS
In each and every company there are competitors, competitors
means one company who make same product as other company made. In short
the company which is making substitute product of the company.
There are many competitors of I cool cold drinks:-
Thums up
Fanta
40
SALES FORCAST
Year
1st
Utilized
Capacity
50%
Productio
n
1,87,200
Sales
1,87,200
Selling
Price
70
2nd
60%
2,24,640
2,24,640
70
3rd
70%
2,62,080
2,62,080
70
4th
80%
2,99,520
2,99,520
70
41
Amount
1,31,04,00
0
1,57,24,80
0
1,83,45,60
0
2,09,66,40
0
5th
90%
3,36,960
3,36,960
42
70
2,35,87,20
0
INDEX
Sr. No.
1
2
3
4
5
6
7
Particulars
Introduction
Fixed Assets
Working Capital
Total Capital Required
Sources of Finance
Interest on Capital
Loan Payment Schedule
Page No.
48
49
51
53
54
54
55
43
8
9
10
11
12
13
14
15
Sales Forecast
Depreciation Schedule
Schedule of Variable and Fixed cost
Cost Sheet
Profitability Analysis
Balance Sheet
BEP Analysis
Ratio Analysis
55
56
58
59
60
61
71
81
INTRODUCTION
Finance or money is said to be the life blood of any company.
Finance is required for setting up the organization and for its expansion .So the
management of finance is the most important part of company management. It
should be managed effectively so that the result over the capital employed can
be maximized. It has been said that a businessman takes money & makes
money. Financial management is that managerial activity which is concerned
with the planning and controlling of the firm`s financial resources. Thus,
without finance it is not possible to run the business unit smoothly.
Weston & Brigham
Financial management is an area of financial decision making,
harmonizing individual motives and enterprise goals.
44
FIXED CAPITAL SCHEDULE

FIXED ASSETS
Sr no.
1
2
Particular
Amount (Rs.)
20,22,930
10,89,270
Land
Building
Total Fixed Assets
31,12,200
PLANT & MACHINERY

Sr no. Name
Mixture plant
Quantity
45
Amount (Rs.)
0
1,60,00
2,00,000
1,60,000
Storage tank
2
Rate
2,00,00
3 Refrigerated storage
80,000
1,80,00
80,000
0
2,30,00
1,80,000
2,30,000
Bottling plant
Testing equipment
5
Total Plant & Machinery
8,50,000
OTHER ASSETS
Sr no.
1
2
3
4
Particular
Furniture
Computer
Van
Car
Total Other Assets
Amount (Rs.)
80,000
25,000
5,50,000
1,50,000
8,05,000
TOTAL FIXED ASSETS

Sr no.
1
2
3
Name
Fixed Assets
Plant & Machinery
Other Assets
Total Fixed Assets
46
Total Amount
31,12,200
8,50,000
8,05,000
47,67,200
WORKING CAPITAL SCHEDULE

RAW MATERIAL
Sr no.
Particular
Rate
Monthly
Quantity
Amount
Yearly
Quantity Amount
6 per
1 Water
ltr
20 per
34667 ltr
2,08,000
3,12,000
24,96,000
2 Sugar
Assens & kind of
acid
3
Total Raw Material
kg
45 per
7020 kg
1,40,400
18,720
16,84,800
kg
5,200 kg
2,34,000
5,82,400
62,400
28,08,000
69,88,800
WAGES & SALARY

Sr
no
monthly
Particular
1 Skilled Worker
2 Semi- Skilled Worker
3 Unskilled Worker
No. of Person Per person Monthly

7
12,000
84,000
10
5000
50,000
8
3000
24,000
47
252000
150000
72000
Yearly
10,08,000
6,00,000
188,000
1,58,000 4,74,000 18,96,000
Total Wages & Salary
UTILITIES
Sr no.
Particular
1 Water
2 Power
Total Utilities
3 monthly Yearly
9,000
36,000
10,500
42,000
19,500
78,000
Monthly
3,000
3,500
6,500
OTHER EXPENSES
Sr no.
Particular
Monthly
Yearly
monthl
y
1 Stationary
2 Telephone bill
3 Advertise exp.
4 Repair & Maintenance
5 Miscellaneous
Total Other Expenses
500
1000
15,000
3000
3000
22,500
1,500
3,000
45,000
6000
12,000
1,80,00
9,000
9,000
67,500
0
36,000
36,000
2,70,00
0
48
TOTAL WORKING CAPITAL

Sr no. Particular
Monthly
3 Monthly
Yearly
69,88,80
1 Raw material
5,82,400
17,47,200
0
18,96,00
2 Wages & salary

3 Utilities
4 Other Expenses
1,58,000
6,500
22,500
4,74,000
19,500
67,500
0
78,000
2,70,000
92,32,80
7,69,400
23,08,200
Total Working Capital
TOTAL INVESTMENT
Sr no. Particular
Yearly
1 Total Fixed Capital

2 Total Working Capital
3 Cash & Bank
Total Investment
47,67,200
23,08,200
9,24,600
80,00,000
49
SOURCE OF FINANCE
Sr no. Particular
1 Own Capital (50%)
2 Borrowed Capital (50%)
Total Capital (100%)
Amount (Rs.)
40,00,000
40,00,000
80,00,000
INTEREST ON CAPITAL
Sr. no.
Particulars
1 Owned Capital (50%)

2 Borrowed Capital (50%)
Total
Amount
Interest Rate
Amount
40,00,000
40,00,000
10%
10%
4,00,000
4,00,000
8,00,000
50
LOAN REPAYMENT SCHEDULE

Year Opening
Interest Interested
Rate
10%
Closing
Installment
8,00,000
Balance
32,00,00
8,00,000
0
24,00,00
8,00,000
0
16,00,00
Balance
40,00,00
0
32,00,00
0
24,00,00
0
16,00,00
10%
1,60,000
8,00,000
0
8,00,000
0
8,00,000
10%
80,000
8,00,000
10%
10%
Amount
4,00,000
Principal
3,20,000
2,40,000
SALES FORECAST
Year
1st
Utilized
Capacity
50%
Productio
n
1,87,200
Sales
1,87,200
Selling
Price
70
2nd
60%
2,24,640
2,24,640
70
3rd
70%
2,62,080
2,62,080
70
4th
80%
2,99,520
2,99,520
70
51
Amount
1,31,04,00
0
1,57,24,80
0
1,83,45,60
0
2,09,66,40
0
5th
90%
3,36,960
3,36,960
70
2,35,87,20
0
DEPRECIATION SCHEDULE
YEAR 1
Sr
no.
Depreciation Opening
Particular
1 Building
2 Plant & Machinery
3 Other Assets
Total
Rate (%)
10%
10%
12%
Amount
10,89,270
8,50,000
8,05,000
Depreciation
Closing
Amount
1,08,927
85,000
96,600
2,90,527
Amount
9,80,343
7,65,000
7,08,400
Depreciation
Closing
Amount
98,034
76,500
85,008
2,59,542
Amount
8,82,309
6,88,500
6,23,392
Depreciation
Closing
Amount
88,231
68,850
74,807
Amount
7,94,078
6,19,650
5,48,585
YEAR 2
Sr
no.
Particular
1 Building
2 Plant & Machinery
3 Other Assets
Total
Rate (%)
10%
10%
12%
Amount
9,80,343
7,65,000
7,08,400
YEAR 3
Sr
no.
Particular
1 Building
2 Plant & Machinery
3 Other Assets
Rate (%)
10%
10%
12%
Amount
8,82,309
6,88,500
6,23,392
52
Total
2,31,888
YEAR 4
Sr
no.
Particular
1 Building
2 Plant & Machinery
3 Other Assets
Total
Rate (%)
10%
10%
12%
Amount
7,94,078
6,19,650
5,48,585
Depreciation
Closing
Amount
79,408
61,965
65,830
2,07,203
Amount
7,14,670
5,57,685
4,82,755
Depreciation
Closing
Amount
71,467
55,769
57,931
1,85,167
Amount
6,43,203
5,01,916
4,24,824
YEAR 5
Sr
no.
Particular
1 Building
2 Plant & Machinery
3 Other Assets
Total
Rate (%)
10%
10%
12%
Amount
7,14,670
5,57,685
4,82,755
53
SCHEDULE OF FIXED COST & VARIABLE COST

Particular
Amount
Total Amount
Variable cost:
Raw material
Other expenses
Utilities
Direct Salary (60%)
Total variable cost
69,88,800
2,70,000
78,000
11,37,600
84,74,400
84,74,400
Fixed cost:
Salary (40%)
Depreciation
Interest on Capital
Total fixed cost
7,58,400
2,90,527
4,00,000
14,48,927
14,48,927
Total
99,23,327
COST SHEET
Particular
1 Year
50%
2 Year
60%
Variable cost:
54
3 Year
70%
4 Year
80%
5 Year
90%
Raw material
Direct salary (60%)
Utilities
Other expenses
69,88,800
11,37,600
78,000
2,70,000
83,86,560
13,65,120
93,600
3,24,000
97,84,320
15,92,640
1,09,200
3,78,000
1,18,64,16
1,11,82,080
18,20,160
1,24,800
4,32,000
1,25,7,840
20,47,680
1,40,400
4,86,000
Total variable cost
84,74,400
1,01,69,280
Fixed Cost:
Salary (40%)
Depreciation
Interest on borrowed
7,58,400
2,90,527
9,10,080
2,59,542
10,61,760
2,31,888
12,13,440
2,07,203
13,65,120
1,85,167
capital
Total fixed cost
4,00,000
14,48,927
3,20,000
14,89,622
2,40,000
15,33,,648
1,60,000
15,80,643
80,000
16,30,287
1,35,59,040 1,52,53,920
1,33,97,80
Total cost
Sales
Profit
99,23,327
1,16,58,902
8
1,83,45,60
1,51,39,683 1,68,84,207
1,31,04,000
31,80,673
1,57,24,800
40,65,,898
0
49,47,792
2,09,66,400 2,35,87,200
58,26,717
67,02,993
PROFITABILITY ANALYSIS
Particular
Sales
1 year
1,31,04,00
2 year
1,57,24,80
3 year
1,83,45,600
55
4 year
2,09,66,40
0
5 year
2,35,87,200
Variable cost:
Raw material
Salary (60%)
Utilities
Other Expenses
TVC
Contribution(s-v)
Fixed cost:
Depreciation
Salary (40%)
TFC
EBIT
- Interest
EBT
- Tax (20%)
PAT
-interest
PAIT
69,88,800
11,37,600
78,000
2,70,000
83,86,560
13,65,120
93,600
3,24,000
1,01,69,28
97,84,320
15,92,640
1,09,200
3,78,000
1,11,82,080
18,20,160
1,24,800
4,32,000
1,35,59,04
1,25,7,840
20,47,680
1,40,400
4,86,000
84,74,400
46,29,600
0
55,55,520
1,18,64,160
0
64,81,440
74,07,360
1,52,53,920
83,33,280
2,90,527
7,58,400
10,48,927
35,80,673
4,00,000
31,80,673
6,36,135
31,80,673
4,00,000
27,80,673
2,59,542
9,10,080
11,69,622
43,85,898
3,20,000
40,65,,898
8,13,180
32,52,718
4,00,000
28,52,718
2,31,888
10,61,760
12,93,648
51,87,792
2,40,000
49,47,792
9,89,558
39,58,234
4,00,000
35,58,234
1,85,167
13,65,120
15,50,287
67,82,993
80,000
67,02,993
13,40,599
53,62,394
4,00,000
49,62,394
2,07,203
12,13,440
14,20,643
59,86,717
1,60,000
58,26,717
11,65,343
46,61,374
4,00,000
42,61,374
FINAL ACCOUNT
1 YEAR
TRADING ACCOUNT
Particular
Amount
Opening stock
0
Purchase (Raw material) 69,88,800
Direct wages (60%)
11,37,600
56
Particular
Amount
sales
closing stock
1,31,04,000
16,65,440
Gross profit
66,43,040
1,47,69,44
0
1,47,69,440
PROFIT & LOSS ACCOUNT

Particular
Salary (40%)
Depreciation on building
Depreciation on machinery
Depreciation on other assets
Interest on borrowed capital
Other Expenses
Utilities
Tax
Net Profit
Amount
7,58,400
1,08,927
85,000
96,600
400,000
2,70,000
78,000
6,36,135
42,09,978
Particular
Gross profit
66,43,040
Amount
66,43,040
66,43,040
BALANCE SHEET
Liabilities
Capital
Amount
Assets
Land
Building
Amount
20,22,930
10,89,270
20,00,00
sunita(50%)
0
20,00,00
ravi (50%):
0
Interest
4,00,000
Net profit
Sunita (50%) 21,04,98
44,00,000
- Depreciation
1,08,927
Plant & machinery

-Depreciation
Other assets
-Depreciation
8.50,000
85,000
8,05,000
96,600
57
9,80,343
7,65,000
7,08,400
9
21,04,98
Ravi (50%)
42,09,978
Cash & bank
9,67,865
40,00,00
Borrow capital
Debtors
41,00,000
32,00,00
-Installment
8,00,000
0
Closing stock
1,12,09,978
16,65,440
1,12,09,978
2 YEAR
TRADING ACCOUNT
Particular
Amount
Opening stock
16,65,440
Direct wages (60%)
13,65,120
Gross profit
63,06,208
Particular
Amount
sales
closing stock
1,57,24,800
19,98,520
1,77,23,32
8
1,77,23,328
58

Particular
Salary (40%)
Other Expenses
Utilities
Tax
Net Profit
Amount
9,10,080
98,034
76,500
85,008
3,20,000
3,24,000
93,600
8,13,180
35,85,806
Particular
Gross profit
63,06,208
Amount
63,06,208
63,06,208
BALANCE SHEET
Liabilities
Own capital
Amount
Assets
Land
Building
Amount
20,22,930
9,80,343
20,00,00
Sunita50%)
0
20,00,00
- Depreciation
Ravi(50%):
Interest
0
4,00,000
35,85,80
Plant & machinery

-Depreciation
Net profit
Borrowed
32,00,00
79,85,806 Other assets

-Depreciation
Cash & bank
Debtors
59
98,034
8,82,309
7,65000
76,500
6,88,500
7,08,400
85,008
6,23,392
1,70,155
40,00,000
Capital
Installment
0
8,00,000
24,00,000 Closing stock
19,98,520
1,03,85,806
1,03,85,806
3 YEAR
TRADING ACCOUNT
Particular
Amount
Opening stock
19,98,520
Direct wages (60%)
15,92,640
Gross profit
73,01,727
Particular
Amount
sales
closing stock
1,83,45,600
23,31,607
2,06,77,20
7
2,06,77,207

Particular
Salary (40%)
Amount
10,61,760
88,231
68,850
74,807
60
Particular
Gross profit
Amount
73,01,727

Other Expenses
Utilities
Tax
Net Profit
2,40,000
3,78,000
1,09,200
9,89,558
42,91,321
73,01,727
73,01,727
BALANCE SHEET
Liabilities
Own capital
Amount
Assets
Land
Building
Amount
20,22,930
8,82,309
Sunita(50%
)
ravi (50%):
Interest
Net profit
Borrowed
- Capital
Installment
20,00,000
20,00,000
4,00,000
42,91,321
24,00,000
8,00,000
- Depreciation
Plant & machinery
-Depreciation
86,91,321 Other assets
-Depreciation
88,231
6,88,500
68,850
6,23,392
74,807
7,94,078
6,19,650
5,48,585
Cash & bank
1,74,471
Debtors
16,00,000 Closing stock
38,00,000
23,31,607
1,02,91,32
1
1,02,91,321
61
4 YEAR
TRADING ACCOUNT
Particular
Amount
Particular
Opening stock
23,31,607
Purchase (Raw material) 1,11,82,080 sales
Direct wages (60%)
18,20,160 closing stock
Gross profit
82,97,247
Amount
2,09,66,400
26,644,694
2,36,31,09
4
2,36,31,094

Particular
Salary (40%)
Other Expenses
Utilities
Tax
Net Profit
Amount
12,13,440
79,408
61,965
65,830
1,60,000
4,32,000
1,24,800
11,65,343
49,94,461
82,97,247
62
Particular
Gross profit
Amount
82,97,247
82,97,247
BALANCE SHEET
Liabilities
Own capital
Amount
Assets
Land
Building
Amount
20,22,930
7,94,078
20,00,00
Sunita(50%)
0
20,00,00
- Depreciation
Ravi (50%):
Interest
0
4,00,000
49,94,46
Net profit
Borrowed
16,00,00
Capital
Installment
0
8,00,000
93,94,461
8,00,000
79,408
7,14,670
Plant & machinery

-Depreciation
6,19,650
61,965
5,57,685
Other assets
-Depreciation
5,48,585
65,830
4,82,755
Cash & bank
2,51,727
Debtors
Closing stock
35,00,000
26,64,694
1,01,94,461
1,01,94,461
63
5 YEAR
TRADING ACCOUNT
Particular
Opening stock
Amount
Particular
26,644,694
1,25,79,84
Purchase (Raw material)

Direct wages (60%)
Gross profit
0
20,47,680
92,92,766
Sales
closing stock
Amount
2,35,87,200
29,97,780
2,65,84,98
0
2,65,84,980

Particular
Salary (40%)
Other Expenses
Utilities
Tax
Net Profit
Amount
13,65,120
71,467
55,769
4,86,000
1,40,000
13,40.599
58,33,811
92,92,766
64
Particular
Gross profit
Amount
92,92,766
92,92,766
BALANCE SHEET
Liabilities
Own capital
Amount
Assets
Land
Building
Amount
20,22,930
7,14,670
20,00,00
Sunita(50%)
Ravi (50%):
Interest
Net profit
0
20,00,00
- Depreciation
0
Plant & machinery
4,00,000
-Depreciation
58,33,811 1,02,33,811 Other assets
-Depreciation
71,467
5,57,685
55,769
4,82,755
57,931
6,43,203
5,01,916
4,24,824
Borrowed
Capital
Installment
8,00,000
8,00,000
Cash & bank

Debtors
Closing stock
1,02,33,811
1,43,158
35,00,000
29,97,780
1,02,33,811
65
BEP ANALYSIS
1 YEAR
Variable cost
Amount
Fixed cost
Amount
Raw material
Direct salary (60%)
Utilities
Other expenses
TVC
69,88,800
11,37,600
78,000
2,70,000
84,74,400
Salary (40%)
Depreciation
7,58,400
2,90,527
4,00,000
TFC
16,08,927
Sales = 1,31,04,000
Sales unit = 1,87,200
Selling price per unit = 70
VC per unit
= TVC
Production unit
= 84,74,400
1,87,200
=
45.26
Contribution = Sales TVC
= 1,31,04,000 84,74,400
= 46,29,600
Contribution per unit = S.P. per unit V.C per unit
= 70-45.26
= 24.73
BEP in unit = Fixed cost
Contribution per unit
= 16,08,927
24.73
= 65,060
66
BEP in Rs. = BEP in unit * S.P per unit

= 65,060* 70
= 45,54,200
BEP in percentage = Fixed cost * Utilized capacity

Contribution
= 16,08,927 * 50
46,29,600
= 17.38%
67
2 YEAR
Variable cost
Amount
Fixed cost
Amount
Raw material
Direct salary (60%)
Utilities
Other expenses
TVC
83,86,560
13,65,120
93,600
3,24,000
1,01,69,280
Salary (40%)
Depreciation
9,10,080
2,59,542
3,20,000
TFC
15,89,622
Sales = 1,57,24,800
VC per unit
= TVC
Production unit
= 1,01,69,280
2,24,640
=
45.27
=1,57,24,800 1,01,69,280
= 55,55,520
= 70 45.27
= 24.73
BEP in unit = Fixed cost

= 15,89,622
24.73
= 64,280
68

= 64280 * 70
= 44,99,600

Contribution
= 15,89,622 * 60
55,55,520
= 17.17%
69
3 YEAR
Variable cost
Amount
Fixed cost
Amount
Raw material
Direct salary (60%)
Utilities
Other expenses
97,84,320
15,92,640
1,09,200
3,78,000
1,18,64,16
Salary (40%)
Depreciation
10,61,760
2,31,888
2,40,000
TFC
15,73,648
TVC
Sales = 1,83,45,600
Selling price per unit =70
VC per unit
= TVC
Production unit
= 1,18,64,160
2,62,080
=
45.27

= 1,83,45,600 1,18,64,160
= 64,81,440

= 70 45.27
= 24.73
BEP in unit =
Fixed cost

= 15,73,648
24.73
= 63,633
70

=63,633 * 70
= 44,54,310

Contribution
= 15,73,648* 70
64,81,440
= 17%
4 YEAR
71
Variable cost
Amount
Fixed cost
Raw material
Direct salary (60%)
Utilities
Other expenses
TVC
1,11,82,080
18,20,160
1,24,800
4,32,000
1,35,59,040
Salary (40%)
12,13,440
Depreciation
2,07,203
Interest on borrowed capital 1,60,000
TFC
Amount
15,60,643
Sales = 2,09,66,400
VC per unit
= TVC
Production unit
= 1,35,59,040
=
2,99,520
45.27

= 2,09,66,400 1,35,59,040
= 74,07,360

= 70 45.27
= 24.73
BEP in unit =
Fixed cost

= 15,60,643
24.73
= 63,107

72
= 63,107 * 70
= 44,17,490

Contribution
= 15,60,643* 80
74,07,360
= 16.86%
5 YEAR
Variable cost
Amount
Fixed cost
73
Amount
Raw material
Direct salary (60%)
Utilities
Other expenses
1,25,7,840
20,47,680
1,40,400
4,86,000
1,52,53,92
TVC
Salary (40%)
13,65,120
Depreciation
1,85,167
-
TFC
15,50,287
Sales = 2,35,87,200
VC per unit
= TVC
Production unit
= 1,52,53,920
=
3,36,960
45.27

= 2,35,87,200 1,52,53,920
= 83,33,280
= 70 - 45.27
= 24.73
74
BEP in unit =
Fixed cost

= 15,50,287
24.73
= 62,689

= 62,689 * 70
= 43,88,230

Contribution
= 15,50,287 * 90
83,33,280
= 16.74%
75
RATIO ANALYSIS
1 YEAR
Profit volume ratio = Contribution * 100

Sales
= 46,29,600 * 100
1,31,04,000
= 35.33%
Gross profit ratio = Gross profit * 100

Sales
= 66,43,040*100
1,31,04,000
= 50.69%
Net profit ratio = Net profit * 100

Sales
= 42,099,78 *100
1,31,04,000
= 32.12%
Fixed assets turnover ratio = Sales

Fixed assets
= 1,31,04,000
47,67,200
= 2.75 times
76
2 YEAR

Sales
= 55,55,520 * 100
1,57,24,800
= 35.33%

Sales
= 63,06,208 *100
1,57,24,800
= 40.10%

Sales
= 35,85,806 *100
1,57,24,800
= 22.80%

Fixed assets
= 1,57,24,800
47,67,200
= 3.30 times
3 YEAR
77

Sales
= 64,81,440 * 100
1,83,45,600
= 35.33%

Sales
= 73,01,727 *100
1,83,45,600
= 23.76%

Sales
= 42,91,321*100
1,83,45,600
= 23.39%

Fixed assets
= 1,83,45,600
47,67,200
= 3.85 times
78
4 YEAR

Sales
= 74,07,360 * 100
2,09,66,400
= 35.33%

Sales
= 82,97,247 *100
2,09,66,400
= 39.57%

Sales
= 49,944,61 *100
2,09,66,400
= 23.82%

Fixed assets
= 2,09,66,400
47,67,200
= 4.40 times
5 YEAR
79

Sales
= 83,33,280 * 100
2,35,87,200
= 35.33%

Sales
= 92,92,766 *100
2,35,87,200
= 39.4%

Sales
= 58,33,811 *100
2,35,87,200
= 24.73%

Fixed assets
= 2,35,87,200
47,67,200
= 4.95 times
80
RISK FACTOR
81
1.
Ch
anges in the government policy, may affect the profitability of the firm.
2.
Hi
gh level of competition with existing units.

3.
Ad
verse climatic condition may affect the availability and prices of raw
materials.
4.
It
is essential to keep pace with exiting environment so changes should be

needed in quantity, Design, Colors, packing form, etc.
5.
Bags are fashionable product so there may be risk of wastage of raw
materials and finished goods.
82
83
SWOT ANALYSIS
The full form of SWOT analysis is..
S - STRENGTH
W - WEAKNEES
O - OPPORTUNITY
T - THREATS
The SWOT analysis of KAVERI SCRUB is as following.
STRENGTH
Happy and contented work force
Efficient management
WEAKNESS
Less production capacity comparatively.
Opportunity
Rapidly and continuous growth in the market, so company will
think about expansion.
Threat
Highly competitive market against imported High pressure.
84
85
FUTURE PLAN
Future plan is advance thinking of the future activity. Every company

has ambition to achieve bright future. Future plan is a presentation of
future activity and position.
As per above description I-COOL aims to achieve bright future.
The following are the future plans of I-COOL COLDRINKS:
It aims at capturing the wide market.
Also, will launch the new categories
for different types.
It aims to have retail shops all over
the country and also beyond boundaries.
It wants to compete with the foreign
companies.
86
87
CONCLUSION
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.
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, Leather Product is
being prepared in traditional way and it is consider as time consuming &
wastage of energy, but now with the introducing the technical equipments,
which survives high quality with much quantity in lesser time.
Thus, we are feeling great pleasure to make the product in front of you
and so expecting move response from market& trying to satisfy the prospecting
customer.
88
89
BIBLIOGRAPHY
Reference from the website: www.i-cool cold drinkproduct.com
www.s-m-a-r-t.com
www.colddrinkinfocenterinholisticonline.com
Financial management : Philip Kotler
90
91

Shri J. H. Bhalodia Women's College, Rajkot: Product Project Report

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Shri J. H.

Bhalodia Womens College,

: Prof. Ramesh Dangar

I Under sign, Ravat Sunita D. a student of B.B.A. Sem-V for the

Date: Place: - Rajkot

B.B.A. course is a special course, which prepares young entrepreneurs,

Human Resources Department

Introduction to small scale industry

Personal detail or partners detail

INTRODUCTION TO SMALL SCALE INDUSTRY

This classification of industry may be based on a number of

Name of the unit

I-cool pvt ltd.

I-cool pvt ltd.

Small scale industry

Name of the product

40% borrowed capital

Nr. Kamdar garbi mandal

BBA with Finance Management.

I handle Production and marketing

Nr. Kamdar garbi mandal

MBA with Finance Management.

I handle H.R. and Finance Department

(* Note: Certain tasks in the above list can be simultaneously performed)

In every country government adopts a different policy for measuring the

Small scale industry:Medium scale industry:Large scale industry:-

FORM OF THE ORGANIZATION

Production is regarded as the most important economic activity in the

Production department consists of raw-material, labours, machineries etc.

these all activities are carried out under production department.

Brand: The brand name of our product is I-COOL.

RAW MATERIAL SUPPLIER NAME & ADDRESS

MACHINERY AND EQUIPMENT

MACHINERY SUPPLIRES & ADDRESS

M/s Pharmaceutical Machinery Manufacturing Works,

M/s Cadmach Machinery Co. Pvt. Ltd.,

Local Market, Local Manufacturer, etc.

2. Passes through the filling machine:

3. Putting co2 and water in bottle and cape the bottle:

4. Checking the bottle:

PRODUCTION CAPACITY SCHEDULE

Working days in a week

Working days in a month

Working days in a year

No. of shifts per day

A continuous emphasis on new ideas through innovation

Personal management is concerned with the obtaining and

In I-COOL COLD DRINKS there are total 12 workers are

Marketing department is one of the most important factors in todays

Liberalization of the Indian Economy since July 1991 has given

Size of the unit.

Geographic descriptions of customers.

Demographic descriptions of customers.

Analysis of market demand.

Consumer needs & wants.

Dealers wants & Preferences.

FIXED CAPITAL SCHEDULE

PLANT & MACHINERY

TOTAL FIXED ASSETS

WORKING CAPITAL SCHEDULE

WAGES & SALARY

No. of Person Per person Monthly