INTRODUCTION

Small scale and medium scale industries form the bulk of Indian industry
the management of a small scale industries is complex. It needs effective
management and befitting governance. In reality, all this industries form the
backbone of Indian business. India must concentrate on medium and SSI for all
round development because SSi's are the core sector of Indian industrial culture
which runs through Indian civilization.

Small scale industries play a key role in industrialization of a developing

country. They provide large scale employment, higher labour capital ratio
comparatively and the need for shorter gestations period and relatively smaller
markets to be economic. They need lower investment. They offer a method more
equitable distribution national income and facilitate effective mobilization of
resources of capital and skill which would otherwise remain unutilized. These
industries stimulate growth of industrial entrepreneurship and promote a more
diffused pattern of ownership and location.

1
 INTRODUCTION & ABOUT PRODUCT

At present, there is cut throat competition in watch glass industry. Even a

single unit of this industry can produce a large quantity of watch glass. Though
there is very limited unit in this industry because this is purely based on
manpower (labour work) the ratio of providing employment is very high with
comparison to any small scale unit.

The industries of watch glass export its product up to 75% of total

production in foreign countries. Rajkot city is on the top to produce watch glass in
India.

At present time the fashions are fast changing in the world. There is a
continues production of wrist watch in many industries in India Most of them are
not producing glass of watch because of hard labour working and man power is
must necessary in producing watch glass.

2
 PROJECT AT A GLANCE

Name of the unit : ARISTOCRAT WRIST WATCH GLASSES

Address Of Unit : Aristocrat Wrist Watch Glasses,

Plot No.13, Main Road,
Shaper. Dist. Rajkot.

Registered Office : Sarjak Prest Pack India,

411, Star Plaza ,
Phulchhab Chowk,
Rajkot .-- 360001

Phone No. : (02827) 2447430, 9377666666

Fax No. : (02827)2553458

E-Mail :Aristocratglass@Yahoo.Com

Form Of Organization : Sole Proprietorship

Name Of Proprietor : Mr. Vanpariya Dhaval

Name Of The Product : Wrist Watch Glass

Size Of The Unit : Small Scale Industry

SSI Register No. : Applied For

3
Subsidies Registration : Applied For

Cost Of Project : Rs. 31,95,600

Means/Sources Of Finance :1)Ownership-55%

2) Borrowed-45%

Year Of Establishment : 2008

Type Of Organization : Manufacturing Concern

Working Days : 8 Hours Working Per Day

Weekly Off : Friday

Working Shift : 8:30 A.M. To 5:30 P.M.

Lunch Break : 12:30 P.M. To 1:30 P.M.

Total Area Covered : 2500 Sq. Ft.

Slogan :Touch The Sapphire Get The Dimond.

Banker : State Bank Of India

4
 IMPLEMENTATION SCHEDULE

No. Activity Time Period

1. Preparation of Project 1.5 Month

2. Selection of Site 15 Days

3. Registration of SSI 1 Month

4. Availability of Finance 1 Month

5. Construction of Building 1.5 Month

6. Arrangement of Machines 15 days

7. Erection of Electrification 1 Month

8. Recruitment of personnel 1 Month

5
 MANAGEMENT SETUP

NAME : Vanpariya Dhaval v.

ADDRESS : KHODIYAR KRUPA

Street no. 5
Gaytri Nagar,
Rajkot 360311

QUALIFICATION : B.B.A. Graduate

AGE : 20 years

FINANCIAL CONTRIBUTION : 55 %

SHARE IN PROFIT : 100 %

EXPERIENCE : Training during study

RESPONSIBILITY : Over all management

6
 ORGANATION STRUCTURE

Proprietor

Personal Production Sales Finance

Department Department Department Department

Sales Accountant
Packing Stocks Foreman Chemist Manager
in Maintaince.
Charge Officer

Workers Workers Salesman

The Proprietor him self is in direct contact with the employees and
workers. The proprietor would take care of Personnel Department.

7
 JUSTIFICATION OF LOCATION

The Unit will be located at Shapar (Taluka - Kotda Sangani) Dist. Rajkot
in Gujarat State. The various factors considered while selecting the location are as
follows.

1. Machines availability :-
The machines required for Glass are available from Rajkot, Mumbai,
Ahemedabad, and Jamshedpur,

2. Raw Materials:-
Availability of raw material is the basic necessity for a business unit to run
smoothly and efficiently. If there will be any break up or delay in supplying the
raw material the cost of production will go high because labour cost per unit
increase with the lower level of production.

So far as my unit is concerned the raw material is the big sheet of glass of
different types. It can easily be available in Rajkot in enough quantity. Raw
materials can also be stored for long time so in the period of shortage of raw
material unit can purchase glass sheets in bulk quantity.

3. Infrastructure Facilities :-
The infrastructure facilities like railway station (within 30 km. In Rajkot
& Gondal), airport (Rajkot), road transport, post office, banks, telephone
exchange connecting through STD, ISD, & FAX are available, Another transport
facility is that by sea transport, nearest port is Porbandar, which is only 170 km.
from our location and another port is Veraval, which is 200 km. from our location.

8
4. Power :-
Power is the basic motive for stimulating the production process there is
no special power connection is required in this unit. Even within single phase
power the machines and instruments can run at fastest period though continues
power supply is very necessary for the smooth flow of production process. The
requirement of electricity is 3750 12w P. M. which is available from F.E.B.
industrial Estate.

5. Water :-
Water is the basic necessity for any unit. Watch Glass needs a larger
quantity of water so unit has arranged two self water extracting motors for speedy
flow of water in shorter time to reduce wastage of time.

6. Labour:
Skilled & Semi skilled labours are available at reasonable rates in Rajkot.
Besides the site is connected with Rajkot city, which is a big commercial city.

9
 PRODUCT DETAILS

In today modern era, the standard of living people is increased. People

have right to choose their consumption pattern. They want long term benefits from
the product and for this purpose they are ready to pay as much as possible.

In our product wrist watch Glass raw material can get easily available in
the market because of now a day industries are increasing and also wrist watch
demand is increasing. Our product (Wrist Glass) is totally depend on selling of
wrist watch.

Now a day in modern world fashion is increasing and young generation

like to purchase the new-new models of wrist watches. So the demand of wrist
watch glass will increase definitely.

Product Use :-
In our product there is no any multiple uses. Because wrist

glass are used only for wrist watch.

Brand Name :-
"Sapphire " - Touch the Sapphire Get the diamond

Features :-
Sapphire it self says that glass looking like a diamond. So, that our wrist
glass is looking like sapphire. There is a only one company who produce better,
best, and good quality in India.

10
 MARKET POTENTIAL

Marketing is the most important activity for any product once the product
produced producer has to offer that production to the market. So far as
SAPPHIRE wrist watch glass in concern there is nothing need to worry about
marketing activity because watch glass is not a final product. The final product of
this unit is a component on part of watch case. So we will produce on the basis of
batch production (order wise production)

Market Potential :
Looking to the ever increasing demand of watch Glass the product of
Sapphire has enough potential. The market for this product is ever expanding and
to meet this requirement production has to be kept continues.
Rajkot is a watch Glass exporting city in India. So the demand of the
watch glass will never stop. It increasing day by day. Hence, there 's nothing to
worry with regard to market potential production is done on order basis. So there
is not any problem of stock of finished goods and investment.

Competitions :-
In the dynamic world competition lies in each and every field on industry
does not need any special type of pattern or trade marks so that the cost of plant is
very low. Hence the competition each unit has to bear low price of its final
production at minimum profit level.
In order to get benefit of more market potential & High prince of
production the unit should prove the quality final product of watch glass. The
quality of watch glass is much move important because the consumers of the
production are very limited. The standard channel of distribution is.

Manufacturer......................................................................Manufacturer

11
 Significance :-
At present the demand of watch glass is fact growing because, It is a part
and parcel of watch cases production. The quality of watch glass & watch case is
equally needed to complete the final product. By increasing the production the
country will get move foreign exchange by exporting it.

12
 RAW MATERIAL

The raw material is used for manufacturing of "Wrist Watch Glass" are-

1. Golden Sheets of Glass

2. Black Sheets of Glass
3. Color (Tins)
4. Net for Block (Meter)
5. Misc. Chemicals
6. Dies and Patterns

The quantities required for per month:-

No. Particular Qty. Price Total Rs.

1. Golden Sheets of Glass 800 70 56000

2. Black sheets of Glass 700 30 21000

3. Colors (Tins) 70 150 10500

4. Net for Block (Meter) 06 1200 7200

5. Misc. Chemicals 5000

6. Dies and Patterns 05 2000 10000

Total 109700

13
 MACHINES

The machines used for manufacturing wrist watch glasses are as under.

Glass Cutter :-
These machines are very useful because without this machine we can not
cut the main sheet of Glass (raw material). So, before giving the shape to the final
product, first of all we have to cut the Glass with the use of this machine.

Shapping Machine :-
This machine play an important role in this industries, without the
shapping machine we are not able to produce final product. So shopping machine
play vital role in production process. This machine gives a suitable shape as per
product.

Cleaner Machine :-
This machine is used to clean the final product. It is very important
machine. This is last & final process of production process.

14
 MANUFACTURING PROCESS

Production is the back bone of any industry its main task is to convert raw-
material into finished product. For the production of watch glass continue order based
production the unit can make mass production without any disturbance. The time
required to convert raw-material into finished goods is very shorter.

PROCESS:--
The watch glass made from gold plated sheets of glass there are main 3
types of glass sheets available in the market.
I. Gold sheets
II. Gray Sheets (Black Sheets)
III. Silver Sheets

On receiving order for any particular glass first of all the die of that glass is
made of exact size of glass. Then the glass sheets are cutter with the help of diamond
cutter, shape of which will not be directly round. Ten to sixteen pieces of glass are
given simultaneously in a machines within one to two minutes. Now the shape of
glass is compete, than sharp corner of the glass is operated for smoothly corner.

15
 Step No. 1

Sheet after scaling though diamond cutter

wastage part of sheet

Step -2 Step -3

Sheet after breaking horizontal Sheet after breaking vertical

16
 Step -4 Step -5

Step -6

Step -7

This is the last step which gives final shape to the watch glass.
The printing is done with different colors machines on the glasss
look step no 6 on its back side.

17
 PRODUCTION CAPACITY SCHEDULE

Proposed Plant output of sapphire is 30 lacs watch glass, so monthly output is

about 2.50 lacs glass.

To produce above mentioned output of units, required time specification are as

under.

1. Production Capacity 30 Lacs No.

2. Number of Shifts 01

3. Total Working Days 300

4. Working hours in a day 08

18
 STAFF & LABOUR DETAILS

As "Sapphire wrist watch Glass' is a small scale industry it would be more

of labour intensive and less capital intensive. "Sapphire industry" Would not be
that technologically advanced. Yet, all the production would be machine aided.
And no manual aid required except the workers running the machines i.e. looking
after the production.

The staff & labour at "Sapphire Glass Industry" Comprise the following.

Production Department :-
(1) Production Manager - Rs. 10,000 P.M. (One Person)
(2) Packing in charge- Rs. 3000 P.M. (One Person)
(3) Stock Maint. Officer- Rs. 3000 P. M. (One Person)
(4) Computer Operator- Rs. 3000 P. M. (One Person)
(5) Foreman - Rs. 2500 P. M. (One Person)
(6) Production Workers - Rs. 2000 P. M. (Four Person)
(7) Packing Workers - Rs. 1800 P. M. (Two Person)

Total - 11

Sales Department:
(1) Sales Manger- Rs. 5000 P.M. (One Person)
(2) Sales Man - Rs. 2500 P.M. (One Person)

Total - 2

Finance Department :-
(1) Accountant - Rs. 3000 P. M. (One Person)
(2) Clerk - Cum - Typist - Rs. 2000 P.M. (One Person)

Total -2

19
 Others :-
(1) Peon - Rs. 1000 P.M. (One Person)
(2) Watchman - Rs. 500 P.M. (One Person)
Total 2
Total Staff & Labour People - 17

20
 Financial Detail

Particular Area Rate Total Cost.

Land 2500 sq. feet 500 12,50,000
Stamp Duty --- --- 1,12,500
Registration Fees --- --- 7500

Total 13,70,000
13,70,000
1. Fixed Assets :-

Particular Area Rate Total Cost.

Building Area Covered for 2000 sq. feet 250 5,00,000

Office, Storage Etc.

Total 5,00,000
2. Building :-

3. Plant & Machinery :-

Name Qty. Rate Total

Glass Cutter Shapping 5 30,000 1,50,000

Cleaner Machine 3 50,000 1,50,000

1 50,000 50,000

Total 3,50,000

21
 4. Other Fixed Assets :-

Name Qty. Rate Total

Delivery Van 1 1,00,000 1,00,000

Furniture --- --- 1,00,000

Computer 2 25,000 50,000

Total 2,50,000

5. Preliminary & Pre-operative Exp. : Rs. 50,000

Total Fixed Assets = a + b + c + d + e

=13,70,000 + 5,00,000 + 3,50,000 + 2,50,000 +

50,000

= 25,20,000

22
23
 COST OF PRODUCTION

Raw Material:-

Particular Rate Req. Day Req. Month Req. Year

Name of Material
Qty. Amt. Qty. Amt. Qty. Amt.

Golden Sheets of Glass 70 32 2240 800 56000 9600 672000

Black Sheets of Glass Colors 30 28 840 700 21000 8400 252000
(Tins) 150 3 450 75 11250 900 135000
NET for bock (Met.) Misc. 1200 0.30 360 7.5 9000 90 108000
Chemicals 2000 --- --- 5 5000 60 60000
Dies of Pattern --- --- --- --- 10000 --- 120000

Total 1374000

24
 Staff & Labour :-

25
No. Particular No. of Rate Amt. Amt.
Persons (P.M.) (P.Y.)

1. Production Mgr. 1 10000 10000 120000

2. Sales Mgr. 1 5000 5000 60000

3. Packing In charge 1 3000 3000 36000

4. Stock Maint. Officer 1 3000 3000 36000

5. Salesman 1 2500 2500 30000

6. Accountant 1 3000 3000 36000

7. Computer Operator 1 3000 3000 36000

8. Clerk - Cum-typist 1 2000 2000 24000

9. Foreman 1 2500 2500 30000

10. Prod. Workers 4 2000 8000 96000

11. Unskilled Worker 2 1800 3600 43200

12. Peon 1 1000 1000 12000

13. Watchman 1 500 500 6000

Total 47100 565200

Other Exp. & Utilities :-

Particular Amt. per month Amt. per year

--:: Expenses ::--

Factory Exp. 3000 36000

26
 Contingency 3000 36000

Maintenance & Repairs 5500 66000

Telephone Charges 2000 24000

Postage & Stamp Duties 500 6000

Mis. Exp. 300 3600

Insurance 4000 48000

Traveling Exp. 1000 12000

Packing Exp. 16000 192000

Selling Exp. 15000 180000

--:: Utilities ::--

Electricity 15000 180000

Total 61,700 7,40,400

Total Cost of Production = a + b + c

= 13,74,000 + 5,65,200 +
7,40,400

= 26,79,600

Total Working Capital

Particular Amount Annual Amt.

27
 Raw Material (4 Months) 458000 1374000
Staff & Labour (2 Months) 94200 565200
Other Exp. & Utilities (2 Months) 123400 740400

Total 675600 2679600

Total Project fund

Particulars Amt.
Fixed Assets 25,20,000
Working Capital (on the Credit Basis) 67,56,00

Total 31,95,600

Sources of Finance

Particulars Amt.
Ownership Capital (55%) 17,57,580
Borrowed Capital (45%) 14,38,020

Total 31,95,600

Interest on Capital

28
 Details Loan Amt. Int. Rate Interest (P.a.)
Own Capital Borrowed 17,57,580 9% 158182
Capital: S.B.I. 14,38,020 11% 158182

Total Interest 316364

Depreciation

29
 Particular Total Amt. Rate Amt.
Building 5,00,000 10% 50,000
Machinery 3,50,000 25% 87,500
Computer 50,000 40% 20,000
Other Fixed Assets 2,00,000 15% 30,000

Total 1,87,500

Annual cost of production/statement cost of production

30
 Particular Amt. Amt.

--::Variable Expenses ::-- .

Raw Material 13,74,000
Utilities 1,80,000
Salary & Wages 1,41,300
(25 % variable) (5,65,200 x 25/100)

--::Other Adm. Expenses ::--

Telephone 24.000
Postage & Stamp Duty 6,000
Miscellaneous Exp. 3600
Traveling Exp. 12000
Packing Exp. 1,92,000
Selling Exp. 1,80,000 4,17,600
Contingencies 36,000

Total Per Annum (A.) 21,48,900

--:: Fixed Expenses ::--
Salaries (75% is fixed) (5.68,200 x 75/100) 42,39,000
Depreciation 1,87,500
Written off Pre-op Exp. 10.000
I Insurance 48,000
--:: Other Expenses ::--
Factory Exp. 36,000
Maintenance & Repairs Interest 66,000 1.02,000
--:: Interest ::--
Borrowed Interest 158182
Capital Interest 158182

Total Per Annum (B.) 10,87,764

Total Cost of Production (A + B)

31
 = Rs. 21,48,900 + 10,87,764

= 32,36,664

Total Cost per Unit:

= Total Cost

Total glass per annum

= 32,36,664
15,00,000

= 2.15 Per Unit

Sales Forecast

32
Year Utilised No. Of Closing Sales Amt. Per Net Sales
Capacity Units Stock (Units) Unit (Rs.)
(%) (Glass) (Unit Sales)
1st 50% 15,00,000 1,00,000 14,00,000 2.85 39,90,000

2nd 60% 19,00,000 1,00,000 18,00,000 2.80 50,40,000

3rd 70% 22,00,000 1,00,000 21,00,000 2.80 58,80,000

4th 80% 25,00,000 1,00,000 24,00,000 2.75 66,00,000

5th 90% 28,00,000 1,00,000 27,00,000 2.75 74,25,000

Sales Forecast for 5 years :-

Calculation of Units of Glass :--

No. of glass = Op. Stock + Production

2nd Year = 1,00,000 + 18,00,000
= 19,00,000
3rd Year = 1,00,000 + 21,00,000
= 22,00,000
4th Year = 1,00,000 + 24,00,000
= 25,00,000
5th Year = 1,00,000 + 27,00,000
= 28,00,000

Fixed Cost and Variable Cost Schedule Fixed Cost

33
 Fixed Cost :--

Particular Amt.
Salaries (75%) 4,23,900
Depreciation 1,87,500
Written of Pre-op. exp. 10,000
Insurance 48,000
--:: Other Expenses ::--
Factory Exp. - 36,000
Maint. & Repairs- 66,000 1,02,000
3,16,364
Interest :-- Borrowed int. + Capital Int.

Total 10,87,764

Fixed Cost Per Unit = T.F.C.

No. of Units
= 10,87,764

15,00,000

= 0.72

34
 Variable Cost :--

Particular Amt.
Raw Material 13,74,000
Utilities 1,80,000

Salary & Wages (25% is variable) 1,41,300

variable)
--:: Other Adm. Expenses ::--
Telephone 24000
Postage & Stamp Duty 6000

Mis. Exp. 3600

Traveling Exp. 12000

Packaging Exp. 192000

Selling Exp. 180000 4,17,600

Contingency. 36,000

Total Per Annum 21,48,900

Variable Cost Per Unit = T.V.C.

No. of Units
= 21,48,900

15,00,000

= 1.43

35
 Total Cost :-- = F.C. + V.C.
= 0.72 + 1.43
= 2.15

Break Even Analysis

1. Contribution (Per Unit) = Sales Price - Variable Cost

= 2.85-1. 43
= 1.42
2. B.E.P. in Units :--
= Fixed Cost
Contribution Per Unit
= 10,87,764 Contri
1.42
= 7,66,030

3. B.E.P. (in Rs.) :--

= B.E.P. (Qty) x Selling Price.

= 7,66,030 x 2.85
= 21,83,185

4. B.E.P. (in %) :--

= Fixed Cost X Utilized Capacity

Contribution
= 1087764 X 50
1841100
= 29.55%

36
 Contribution = 14,00,000 x 2.85-V.C. (21,48,900)
= 39,90,000 -21,48,900
= 18,41,100

Term - Loan Repayment

No. Op. Bal. Installment Clo. Bal. Interest

1 14,38,020 3,00,000 11,38,020 1,58,182

2 1,38,020 3,00,000 8,38,020 1,25,182

3 8,38,020 3,00,000 5,38,020 92,182

4 5,38,020 3,00,000 2,38,020 59,182

5 2,38,020 2,38,020 --- 26,182

Avg. Cost of Capital

Capital Rate Interest
1. Own Capital 9% 158182
2. Barrowed Capital 11% 158182

Total 316364

Avg. Cost of Production :

= Total Interest X 100
Total Capital
= 3,16,364 X 100
31,95,600
= 9.90

37
 Return on Investment

R.O.I. = E.B.I.T. X 100

Cost of Project

E.B.I.T. = Sales - (Variable cost + Fixed Cost - Interest)

= 39,90,000-(21,48,900 + 10,87,764-316364)
= 39,90,000-29,20,300
= 10,69,700

R.O.I. = 10,69,700 X 100

31,95,600
= 33.47%

38
 PROFITABILITY AND PROFITABILITY
ANALYSIS

Particular Amt.
Sales 39,90,000
(Less) Cost of Production 2920300
--:: EBIT ::-- 1069700
(Less) Interest 316364

--:: EBT ::-- 753336

Tax :
< 1,00,000 = Nil
+ 101000 - 150000 = 10% i.e. 5000
+ 151000 - 250000 = 20% i.e. 20000
+ 250000 > = 30%
[753336-250000]
= 503336x30% = 15100
176000
+ 2% Education 1.76.000
Total Tax 1,79,520 179520

E.A.T 573816

39
Tax: -- up to 1,00,000 = Nil
+> 1,01,000 to 1,50,0000 @ 10 % = 5000
+> 1,51,000 to 2,50,0000 @ 20 % = 20,000
+> 2,50,000 to ..@ 30 %
So, [ 7,53,336 2,50,000 ]
= 5,03,336 X 30 % = 1,51,000
1,76,000
+ 2 % Education tax = 3,520
Total tax 1,79,520

Gross Profit Ratio :--

= Gross Profit X 100
Sales
= 17,97,300 X 100
39,90,000
= 45.04 %
Net Profit Ratio :--
= Net Profit X 100
Sales
= 5,73,816 X 100
39,90,000
= 14.38 %
Fixed Assets turnover Ratio :--
= Sales
Fixed Asset
= 39,90,000

40
 25,20,000
= 1.58 %

RISK FACTORS

In many businesses, whether small or big, there is always possibility

happening something unexpected. That means there are some risks factors which
effects the working of business. The > risk may be due to technological changes.
Those machinery become outdated, change in fashion, performance and attitude
of people, shortage raw material, domination of big industry, etc. In this unit,
there are also some risk factors which are as follows.

1. There is more and more short of glass sheet. If raw material is not
available at particular than production cost will go high and shortage for
long time may cause for the close down for our unit.
2. The product of our unit is made of glass, so, if proper care is not taken
for handling the raw material, finished materials then it may be possible
that firm get a higher amount of loss which will affect the profitability of
the film.
3. In our unit, we are trained the unskilled workers so, when any male or
female worker leave the unit at that time utilization capacity of the plant
will go down for one or two months.
4. The production process of our product is much more affected by
atmosphere if there is any irregular changes in atmosphere than
production target may not be achieved as I have assumed.

41
 ADDRESS OF RAW MATERIAL SUPPLIER

1. Shiv-Shakti Glass Ltd.

Gondal Road,
Near Mili Tower,
Rajkot

2. "Life - Time" Glass World

Sigma Chamber,
M. G. Road,
Ahmedabad.

Note :-- Our main raw material is glass sheet. So it is easily available
from both these supplier

42
ADDRESS OF MACHINERY SUPPLIER

1. M/s. German Manu. Ltd.

Industrial Estate,
Thane,
Mumbai.

2. M/s. Parthav Manu. Pvt. Ltd.

GIDC.
Plot No. 34,
Ahmedabad.

3. M.S. Bearing & Tools Corp. Ltd.

Tata Nagar,
"Jamna Manzil"
11th Chamber,
4th Floor,
Jamshedpur.

43
 Project Operating Statement

Particular amount
Sales 39,90,000
Net Sales / Income (A) 39,90,000
--:: Manufacturing Exp ::--
Raw Materials 13,74,000
Labour 1,41,300
Utilities 1,80,000
Factory Expenses 36,000
Repairs & Maintenance 66,000
Total Manu. Exp. (B). 17,97,300
Gross Profit (A-B) (C) 21,92,700
--:: Adm. Selling Exp ::--
Telephone 24,000
Postage & Stamp Duty 6000
Miscellaneous Exp. 3600
Traveling Exp. 12000
Packing Exp. 1,92,000
Selling Exp. 1,80,000
Contingencies 36,000
Salary 42,39,000
Depreciation 1,95,500
Written of Pre. Op. Exp. 10,000
Insurance 48,000
--:: Interest ::--
Own Capital 1,58,182
Borrowed Capital 1,58,182

--:: Total Adm. Ex. (D) ::-- 14,46,864

Operating Profit (C-D) 7,47,836
Less : Tax 1,79,520
Net Profit 5,68,316

44
 PROJECTED BALANCE SHEET

Particulars Amount
--:: Capital Liability ::--
Capital 17,57,580
(+) Int. on Capital 1,58,182
(+) Net Profit 5,68,316

24,84,078
Borrowed Loans 14,38,020
(+) Interest 1,58,182

15,96,202
Creditors 2,50,000
Total
Total 43,30,280
-::Property Assets ::-
Fixed Assets
12,50,000
Land
4,50,000
Building Less Dep.
2,62,500
Machine Less Dep.
50,000
Computer Less Dep.
12,82,400
CI. Stock of Goods
6,84,246
Debtors
3,11,134
Cash
40,000
Pre-op Exp. Less W/o

Total 43,30,280

45
 Projected Cost Sheet

Particulars 1stYear
--:: Raw Material Consumed ::--
Op. Stock of Raw Material ---
+ Purchase 1374000
1374000
Closing Stock 9600
Cost of R.M. Consumed 1282400
Direct Wages 126000
Utilities 180000
Prime Cost 1588400
--:: Factory Overhead ::--
Salaries 205200
Factory Expenses 36000
Dep. On Building & Machine 137500
Maint. & Repairs of Machine 102000
WORK COST 2069100
--:: Office / Adm. Overhead ::--
Telephone 24000
Postage &. Stamp Duty 6000
Insurance 46000
Salaries 72000
Mis. Expenses 3200
Contingencies 35000
Interest on Ownership Cap. 158182
Depre. On other fixed Asset. 37500
COST OF PRODUCTION 2454382
Add : Op. Stock of Fin. Goods
Less : Clo. Stock of Fin. Goods 285000
Cost of Prod. Of G. Sold 2169382
--:: Sellinq & Dist. Overheads ::--
Salaries 252000
Traveling Exp. 12000
Cost of Sales. 2433382
Sales 3990000
Profit 1033382

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 PARTICULARS OF R. M. CONSUMED

Particular 1stYear
Qty. Amt.
Op. Bal. 18990 1374000
+ Purchase - Clo. Stock 1265 91600

R.M. Consumed 17725 1282400

PARTICULARS OF FINISHED GOODS

Particular 1stYear

Qty. Amt.
Op. Bal.
+ Goods Manufacture
1500000 4275000
- Sales
1400000 3990000

CI. Stocks 100000 285000

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 SCHEDULE OF FIXED GOODS

Particular Gross Block Depreciation Net Blocks

|
Opening Total Total During the W.D.U.
Addition Accumulated Year
Building 500000 500000 --- 50000 450000
---
Machine 350000 350000 --- 87500 262500
Computer 50000 50000 --- 20000 30000
Other Fixed Asset 250000 250000 37500 212500

Total 1150000 198000 955000

SCHEDULE FOR FACTORY OVERHEADS

Particular Amt.

Salaries and Wages 205200

Factory Expenses 36000

Dep. On Building & Machine 137500

Maintenance & repairs of Machine 102000

Total 480700

SCHEDULE FOR ADMINISTRATIVE &

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 SELLING OVERHEADS

Particular Amt.

Telephone 24000

Postage & Stamp Duty 6000

Miscellaneous Expenses 3600

Traveling Expenses 12000

Packing Expenses 192000

Selling Expenses 180000

Contingencies 36000

Salary 4239000

Depreciation 195500

Written of Pre. Op Exp. 10000

Insurance 48000

Total 4946100

Disclosure of Significant Accounting Policies

49
 We take Double entry system in Book Keeping area.

Method of Depreciation = Written Down Method.

Valuation of Inventory = Cost Price or Mkt. Price whichever less.

(Most of the time cost price is less. So we always take valuation of
Inv. On cost price bases.)

Accounting Year = 1 ' April to 31

s Sl
March

50
 BIBLIOGRAPHY

Principle & Practice of Management

Business today

Entrepreneurship & management of Small Business

51