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A Product Project Report On

Academic Year

2012-13
Roll no: 33

College:

R.P.BHALODIA COLLEGE
Prepared By:

BHAGYATA RATHOD
Submitted To:

Saurashtra University, Rajkot


Guided By:

Savan Rupala
Class: B.B.A SEM-V
PREFACE

As a management student of the final year of graduation, practical knowledge

about the corporate world is no more a desire or a voluntary action to be

undertaken but a simple bare necessity.

To suffice the above mentioned requirements BBA the course has expanded

its purview and scope to the world of practical training. A student should have

knowledge about all the happenings and functioning of the small scale industries,

in order to be competent managers or entrepreneurs.

As a student of BBA, one should have sufficient and basic knowledge

regarding how to start a small business, how to management it, how to make a

financial estimates and manage funds and the most important of all how to make a

product project report on the basis of which they can apply for a loan from bank.

Thus, product project report at this stage makes many things clear in mind of

student which helps lot in future therefore it ensures practical exposure in the

world of business and entrepreneurship and inculcates necessary skills which are

indispensable for any venturous entrepreneur.


ACKNOWLEDGEMENT

It is really a much pleasure for me to prepare a product project report. At

this stage while studying in.B.B.A.SEM.V project report is an important part of

business and it is in the interest of the entrepreneur to prepare the project report

before he starts the actual production.

It is my pleasant duty to express my profound gratitude and extreme regards

to Prof. Savan Sir under whose kind and pinpointed guidance, I was not able to

complete my project work in time, without whose learned and capable guidance

and encouragement, this work could not have been completed successfully.

I am also very thankful to S.S.I. office Rajkot and Rathod eng. Works which

are the real source of information of my project which help me a lot in the

preparation of the project report.

Date: -

Place: Rajkot signature:


DECLARATION

I undersigned BHAGYATA RATHOD the student of B.B.A.SEM.V hereby

declare that this product project report (PPR) is my own work. It has been prepared

by me, under the guidance & direction of lecturer Prof. Savan Rupala the one of

the faculty member of R.P.Bhalodia College of Computer & commerce (BBA)

The work has not been previously submitted to any other university for any

other examination.

Date:

Place: Signature
MAIN INDEX

SR.NO. PARTICULAR PG.NO

1. General Information

2. Production information

3. Marketing Information

4. Human resources

information

5. Financial information

6. SWOT analysis

7. Future plans

8. Conclusion

9. Bibliography
SR.NO. PARTICUARES PG.NO.

A Company profile

B Owner profile

C History & Development

D Utility of product
COMPANY PROFILE

Name of the unit : RATHOD ENGINEERING PVT.LTD.

Address of the unit : 10, BHAKTINAGAR STATION PLOT

RAJKOT, GUJRAT.360002

Form of the organization : MANUFACTURING & TRADING

Name of the product : POWER PRESS MACHINE

SSI Registration No. :

Size Of The unit : SMALL SCALE UNIT

Financial Year : APRIL TO MARCH


OWNER’S PROFILE

Name : BHAGYATA S. RATHOD

Address : “SARAHI PRASHANT”

18, KARANPARA

RAJKOT, GUJRAT. 360002

Education Qualification : BBA

Business Knowledge Expertise :

Capital Contribution Amount :


HISTORY OF THE PRODUCT AND DEVELOPMENT
UTILITY OF PRODUCT
SR.NO. PARTICUARES PG.NO.

A Introduction

B Location of unit

C Justification of location factors

D Names of raw materials

E Name of suppliers

F Production process

G Pollution control measure


INTRODUCTION

 Definition of Production Management

According to Elwood Spencer Buff, "Production management deals with

decision-making related to production processes so that the resulting goods or service is

produced according to specification, in the amount and by the schedule demanded and at

minimum cost."

 Importance of Production Management

The importance of production management to the business firm:

1. Accomplishment of firm's objectives :

Production management helps the business firm to achieve all its objectives. It

produces products, which satisfy the customers' needs and wants. So, the firm will

increase its sales. This will help it to achieve its objectives.

2. Reputation, Goodwill and Image :

Production management helps the firm to satisfy its customers. This increases

the firm’s reputation, goodwill and image. A good image helps the firm to expand

and grow.
3. Helps to introduce new products :

Production management helps to introduce new products in the market. It

conducts Research and development (R&D). This helps the firm to develop newer

and better quality products. These products are successful in the market because they

give full satisfaction to the customers.

4. Helps to face competition :

Production management helps the firm to face competition in the market. This

is because production management produces products of right quantity, right quality,

and right price and at the right time. These products are delivered to the customers as

per their requirements.

5. Optimum utilization of resources :

Production management facilitates optimum utilization of resources such as

manpower, machines, etc. So, the firm can meet its capacity utilization objective.

This will bring higher returns to the organization.

6. Expansion of the firm :

The Production management helps the firm to expand and grow. This is

because it tries to improve quality and reduce costs. This helps the firm to earn

higher profits. These profits help the firm to expand and grow.
LOCATION OF UNIT

 Registered Office:

Rathod engineering pvt.ltd.

10, Bhaktinagar station plot,

Rajkot, Gujarat. 360002

 Factory Office:

C-1/192/1,

METODA G.I.D.C.

KALAWAD ROAD,

RAJKOT, GUJARAT, INDIA


JUSTIFICATION OF LOCATION

The promoters are having factory shed at Metoda, GIDC, Rajkot. The
selected location is very much near to the Rajkot city. Short, the industrial location
of the proposed project is most suitable and it will enjoy all the benefits of being
nearest to the market.

1. NEAREST MARKET

The product proposed to be manufactured in plant i.e. Crusher machines is


having nationwide market. As the city is connected by road, rail and air with all
the parts of India, the unit shall be able to cover nationwide market easily and
conveniently.

2. RAW-MATERIALS AVAILABILITY

The main raw-material required in the proposed project is iron materials,


which will be available easily in requisite quantity. Hence, there would be no
difficulty in acquiring the raw-materials in the proposed project.

3. TRANSPORTATION

The factory location of the unit is in Rajkot district, where transportation


facilities are available round the clock at lower cost.
4. DIRECT LABOUR

In the proposed unit, 10 persons will be employed viz., 3 skilled labors, 2


semiskilled labors, 2 supervisors, 3 administrative persons. The requirement would
be easily met from local area itself.

5. OTHER INFRASTRUCURE FACILITIES

POWER:

At present, the entity has applied for power connection for 90 H.P. at the
proposed site.

WATER:

Infect requirement of water in the manufacturing process is around 100000


liter per day. There is very good availability of water from the bore in the
surrounding area.

BANKING FACILITY:

The factory location of the unit is situated in GIDC, where banking services
are available. Hence, it would be convenient for the unit to have its banking
account.
NAME OF RAW MATERIALS

 M.S.Plat
 Shaft
 Gun metal
 Casting
 Forging
NAMES AND ADDRESSES OF SUPPLIERS

Sonar Machine Tools


Address:- 6, Samrat Industrial Area,
Gondal Road,
Dr. Vikram Sarabhai Marg, Gondal Road,
Rajkot - 360004,
Gujarat, India

Ambika Agro Industries

Address : - Atika Industrial Area,


Dhebarbhai Road (South),
Rajkot - 360002,
Gujarat, India

Vishwakala Machine Tools

Address: - Gondal Road,


Near S.T. Workshop,
Rajkot - 360004,
Gujarat, India
Shailesh Sales Corporation

Address : 10, Bhaktinagar Station Plot,


Rajkot - 360002,
Gujarat, India

Siddhapura Machine Tools

Address : Dhebar Road,


Opp. Mehta Petrol Pump,
Rajkot - 360002,
Gujarat, India
MANUFACTURING PROCESS

FEBRICATION

FEATLING

MACHINIG FACING

BOARING

TURNING

GRINDING

S
ASSEMBLING

TEASTING

PAINTING

PACKING

DISPATCHING
POLLUTION CONTROL AND SEFTY MEASURE

As stringent environmental regulations regarding SO2 emissions have been enacted


in many countries, SO2 is now being removed from flue gases by a variety of
methods. The below is among the common methods we used:

 Wet scrubbing using a slurry of alkaline sorbent, usually limestone or lime, or


seawater to scrub gases;
 Spray-dry scrubbing using similar sorbent slurries;
 Wet sulfuric acid process recovering sulfur in the form of commercial
quality sulfuric acid;
 SNOX Flue gas desulfurization removes sulfur dioxide, nitrogen oxides and
particulates from flue gases;
 Dry sorbent injection systems.

We also tree plantation around our all factory for decrease air pollution.
MARKETING
MANAGEMENT
SR.NO. PARTICUARES PG.NO.

A Introduction

B Market potential of product

C Distribution channel

D Promotional activity
INTRODUCTION

Marketing is a comprehensive term and it includes all resources and a

set of activities necessary to direct and facility the flow of goods and services from

producer to consumer in the process of distribution. Human efforts, finance and

management constitute the primary resources in market.

Marketing is the performance of business, activities that direct the flow

of goods and services from producer to consumer in the process of distribution.

The modern concept of marketing is the satisfaction of customers. Marketing is

centered on customers.

Marketing management represents the functional Ares of business

management for the flow of goods and service from the producer to consumer. It

looks after the marketing systems of enterprise. Marketing management performs

to consumer all managerial function in the field of marketing. It has to formulate

sound marketing policies and programmer.

Marketing management is responsible for organization direction and

controlling all the marketing activities including the process of marketing. It has to

implement the marketing programmer and conduct the marketing campaign.


MARKET POTENTIAL

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 cable & wires industries in special.

COMPETITION:

In the studies made by the promoters about competition in the market of Electric

wires it has been observed that there is low level of competition prevailing in the

market. The concern has decided to capture the market and achieve its sales target

with the use of following two aspects:

1. Reasonable market price

2. Quality control

The concern has proposed the sale price of its product quite lower than the

prevailing market price. Hence the unit’s product would be more acceptable by the

consumer in comparison to other manufacturers.


MARKETING AND SELLING ARRANGEMENTS:

The firm has developed very wide contacts for the product proposed to be

manufactured. Moreover it has also contacted leading customers of the proposed

product.

Prospective customers are:

 AUTO PARTS

 FURNITURE

 METAL FORMING

 SHEET METAL COMPONENT

 BEARING

 FORGING
DISTRIBUTION CHANNEL

Channel of distribution can be defined as, “The marketing process in which


goods and services are transferred from producers to consumers”.

Distribution means to distribute, spread or disseminate in the field of marketing


channel of distribution indicates routes or pathways through which a good or services
flows or moves from producer to customers.

a) Manufacturer – Industrial product users


b) Manufacturer – Industrial distributor – Industrial product users
c) Manufacturer – Industrial agents-Industrial product user
d) Manufacturer – Agent-Industrial Distributor- Industrial product users

We are adopting the channel of distribution as under.


Manufacturer – Industrial Distributor- Industrial product users
We choose this distribution channel because the distribution channel as the set of
marketing actives involved in the movement of the flow of goods and services from
the primary produces to ultimate customers.

The entire function of getting goods in to the hands of customers is often


referred to as distribution. The middlemen engaged in moving goods from the place
of production to the place of consumption goods are moved to the desired place
through the channel. In other words, the route by which goods move from the place
of production to the place of consumption is termed as channel of distribution
machine
PROMOTIONAL ACTIVITY

Promotion is an exercise in information, persuasion and influence. Sales


promotion consists of a diverse collection of effective tools mostly short term
designed to stimulate quicker and or greater purchase of a particular product by
customer.

In the words of Masson and Ruth, “Promotion consists of those activities that are
designed to bring a company’s goods or services to the favorable attention of
customers”.

Sale promotion is an important instrument in marketing to lubricate the marketing


efforts. Today sales promotion is necessity. It is not expenditure. It is an investment,
which pays rich dividends. It is an integral part of marketing efforts. It covers all
marketing activities like advertising, publicity and personnel selling that stimulate
consumer purchasing and dealer effectiveness.

We use sales promotion some extent. We promote their sales by offering quality
items in various weight, price etc we use sales promotion to some extent for
purchasing the consumer. Our main promotional effort for product is advertisement,
that is as follows;
ADVERTISEMENT

“Advertising is any form of non-personnel presentation of ideas, goods or


services for the purpose of including people to buy”.

Advertising is nothing but a paid from of non-personnel presentation of ideas,


goods or services by an identified sponsor. In the present day, advertising has
become an inseparable part of the business. However, the form of advertisement
may differ from business to business.

It is a more useful way of the communication between producers and


consumers. Advertising is a paid from of publicity. It appears in the recognized
media such as news papers, Radio, Television, outdoor hoardings, billboards etc. it
is a unique means of non-personnel of mass communication announcing the sale of
goods of services. In short it is a backbone of modern marketing.

Organizations handle their advertisement in different ways. In small company


advertising is handled by sales or marketing – department or by the agency in the
large company, there is its own advertising department. The advertising
department’s jobs is to develop the total budget, help develop advertising strategy,
approve ads and Campaigns and handle direct main advertising; dealer’s display and
other form of advertising and ordinarily performed by the agency. Most of
companies use an advertising agency which helps them create advertising campaigns
and to select and purchase media.

We are mostly preferred advertisement through newspapers, hoarding, and


catalogue.
SR.NO. PARTICUARES PG.NO.

A Introduction

B Organization chart

C Organization structure

D Recruitment & selection

E Employee welfare activity

F Time keeping system


INTRODUCTION

According to flippo, personnel management or human resources

management is the “planning, organizing, directing and controlling of the

procurement, development, compensation, integration, maintenance and

reproduction of human resources to the end that individual, organizational and

societal objectives are accomplished.”

“Personnel management involves the task of handling the human problems

of an organization and is devoted to acquiring, developing, utilizing and

maintaining an efficient work force.”

Without united human efforts no organization can achieve its goals. All the

activities of an organization are initiated and completed by persons who make up

the organization. Therefore people are the most significant resource and it is the

most important factor of production.


ORGANIZATION CHART

MANAGING DIRECTOR

GENERAL MANAGER

PERSONAL MANAGER

PERSONAL OFFICER

HRD. OFFICER

SENIOR ASSISTANT

ASSISTANT

CLERKS TIME KEEPER RECEPTIONIST COMPUTER


N STRUC OPERATOR
ORGNIZATION STRUTURE

Organization is a group of people working to gather with co-operation under

authority towards achieving goals and objectives that mutually benefit the participants

and the unit (organization). The essence is that people works together require define

system of structure through which they relate to each and through which their efforts

can be coordinated. Every organization has its goal and objectives to be accomplished.

In case of personnel management, it is to optimize the effectiveness of human

resources. Their goals can be achieved more suitably by the behavior of workers and

the composition of the organization can be predicted and integrated cooperatively.

The company follows a line and staff type of organization structure which refers
to the frame work of relation of each employee to the other. The total number of
personnel working in Turbo is as under:

Managers :3

Staff : 11

Skilled Workers :7

Semi skilled workers : 7

Unskilled workers : 10
With this much staff at the disposal of us it manages the large-scale organization in

an efficient and economic way. The unit has a good hold over the employees and the

management employees are also worth appreciating.


RECRUITMENT AND SELECTION

Recruitment and selection are procedures which take place step by step in order to fill
up the vacancies in the organization.

RECRUITMENT

Recruitment is the process of searching for prospective employees and stimulating


them to apply for job in the organization.

There are main two sources for recruitment.

1. Internal Sources

2. External Sources

We adopt both the type of sources for recruit person.

 For unskilled worker we use internal sources we get unskilled workers on


reference of current or previous workers.
 For skilled workers and official staff we use external sources, we give
advertisement in NEWS PAPER and recruit employees.
SELECTION

Selection is a process of carefully choosing candidates who offer themselves for


appointment.

The selection process in our company is simple,

 The applications are received and after the applications are received we are
scrutinized and sent to department head.
 The department head conducts interviews of the candidate and the appropriate
among them are selected.
 The selected candidates are employed in the firm on the condition that they have to
provide their services to the firm for minimum three years.
 For this purpose the candidate has to sign the bond prepared by the company and
then that candidate is placed in the position fit for him.
EMPLOYEESWALFARE ACTIVITY

Employees are important assets of a unit. So for better work performance they should
be motivated. For this they should be given not only financial incentives but also noon-
financial incentives and facilities.

In our company There are total permanent 40 personnel’s. We are provided different
kind of facilities. The facilities provided to the employees give them satisfaction and they
feel devoted towards the company. Various facilities provided to the personnel are as
under:

 CANTEEN

The company given canteen facility to the employees. Tea, Coffee, Cold drinks and
lunch are available. Two cups of Tea or coffee are provided free of cost to all employees in
each shift. Lunch and snacks are being provided at subsidies rates.

 ANNUAL BONUS

Every year since the factory went for production the annual bonus has been paid at the
maximum i.e. 25%
 UNIFORM FACILITIES

We provided to employees the dress from the company. All workman including office
staffs are provided with two pairs of uniform per year. In the case of workman of shop
floor it is strong cotton uniform and in the case of supervisory and office staff is terry
cotton or good quality.

 SAFETY EQUIPMENT

Helmets, goggle, gloves, aprons are provided to workmen according to their job .

 MEDICAL FACILITIES

The company provides Medical facilities to the employees because there are chances of
accidents during production and assembling of a product. So there is a special room for
medical treatment.
TIME KEEPING SYSMTE

Time is part of measuring system use to sequence events, to compare the

duration of events and the intervals between them and quantify rates of change

such as the motions of object. Time keeping system is particular matters, clocks and

calendars regulate every day. Life yet at most primitive level, human awareness of

time is simply the ability to distinguish which of any two events is earlier and which

later combine with a consciousness of an unsteadies present that is continuously

being transformed in to a remembered past as it is replaced with an anticipated

future.

In our company time keeping system refers according to shifts and

working hours that is as under,

 MORNING SHIFT : 8:00 A.M. TO 12:00 P.M.


 RECESS : 12:00 P.M. TO 2:00 P.M.
 AFTERNOON SHIFT : 2:00 P.M. TO 8:00 P.M.
 WEDNESDAY : Holiday
FINANCE
DEPARTMENT
1. Cost Sheet for Year 2012-2013

Particulars Per unit Total Amount

Cost of Materials Consumed:

Direct Materials 500 5000000

200 2000000
Direct Wages
100 1000000
Direct Expenses

PRIME COST 800 8,00,000

Factory Overheads:

Depreciation:

Plant & Machinery 70 70,000

Factory Building 80 84,000

Factory Insurance
50 50,000

Repair & Maintaince of Plant 50 46,000

Indirect Wages 40 40,000

110 1,10,000
Electricit

TOTAL 400 4,00,000

FACTORY COST 1200 12,00,000


Administrative Expenses:

Telephone & Postage Expenses 10 10,000

Depreciation:

Furniture 50 50,000

30 30,000
Vehicle

Stationary 10 10,000

Legal Expenses 15 15,000

170 1,70,000
Salary
15 15,000
Miscellaneous Expenses

Total 300 3,00,000

COST OF PRODUCTION 1500 15,00,000

Add: Opening Stock of Goods -

Less: Closing Stock Of Finished Goods 7,50,000

SALES 1500 7,50,000

Selling & Distribution Overheads:

Carriage Outward 60 30,000

Bad Debts 56 28,000

44 22,000
Trade Discount Allowed
Transport expense 40 20,000

Total 200 1,00,000

TOTAL COST 1700 8,50,000

Add: 20% PROFIT 340 1,70,000

SALES 2040 10,20,000

Installed & Utilized Capacity: (2012-2013)

Installed Capacity in unit (p.a) = 5000(100%)

Utilized Capacity in unit (p.a) = 1000(10%)

2. Cost Sheet for Year 2013-2014


Particulars Per Kg (Rs.) Total Amount

Cost of Materials Consumed:

Direct Materials
500 1000000

Direct Wages 200 400000

Direct Expenses 100 200000

PRIME COST 800 1600000


Factory Overhead

Depreciation:
70 70,000
Plant & Machinery

Factory Building 80 84,000

Factory Insurance 100000


50
Repair & Maintaince of Plant 100000
50
Indirect Wages 80000
40
Electricity
110 220000

TOTAL 400 800000

1200 2400000
FACTORY COST

Administrative Expenses:

Telephone & Postage Expenses 10 20000

Depreciation:

Furniture 50 100000

Vehicle
30 60000

Stationary 10 20000

Legal Expenses 15 30000

170 340000
Salary

Miscellaneous Expenses 15 30000


Total
300 6000000

COST OF PRODUCTION 1500 3000000

Add: Opening Stock of Goods 750000

Less: Closing Stock Of Finished Goods 1875000

Total 1250 1875000

Selling & Distribution Overheads:


60000
Carriage Outward 40
56000
Bad Debts 37.33
44000
29.33
Trade Discount Allowed
40000
Transportation Expenses 26.66
200000
Total 133.33

TOTAL COST 1383.33 2075000

Add: PROFIT 276.77 415000

1660 2490000

Installed & Utilized Capacity: (2012-2013)

Installed Capacity in unit (p.a.) = 5000 unit

Utilize capacity in unit (p.a.) = 2000 unit


3. Cost Sheet for Year 2014-2015:
Particulars Per Kg (Rs.) Total Amount

Cost of Materials Consumed:

Direct Materials 500 1500000

Direct Wages 200 600000

100 300000
Direct Expenses

PRIME COST 800 2400000

Factory Overheads:

Depreciation:

Plant & Machinery 70 210000


Factory Building 80 240000
Factory Insurance
50 150000
Repair & Maintaince of Plant
50 150000
Indirect Wages
40 120000
Electricity
110 330000

TOTAL 400 12,00000

FACTORY COST 1200 3600,000

Administrative Expenses:

Telephone & Postage Expenses 10 30000


Depreciation:

Furniture
50 150000

Vehicle 30 90000

Stationary 10 30000

15 45000
Legal Expense

Salary 170 510000

Miscellaneous Expenses 15 45000

Total 300 900000

COST OF PRODUCTION 1500 4500000

Add: Opening Stock of Goods 1875000

Less: Closing Stock Of Finished Goods 3187500

Total 1275 3187500

Selling & Distribution Overheads:

Carriage Outward 36 90000

Bad Debts 33.6 84000

26.4 66000
Trade Discount Allowed

Transportation Expenses 24 60000

Total 120 300000

TOTAL COST 1395 3487500

Add: 20% PROFIT 279 697500

SALES 1674 4185000


Installed & Utilized Capacity: (2012-2013)

Installed Capacity in unit (p.a.) = 5000 unit

Utilized Capacity in unit (p.a.) = 3000 unit

4. Cost Sheet for Year 2015-2016:


Particulars Per Kg (Rs.) Total Amount

Cost of Materials Consumed:


500 2000000
Direct Materials
200 1200000
Direct Wages
100 400000
Direct Expenses

PRIME COST 800 3200000

Factory Overheads:

Depreciation:
70 280000
Plant & Machinery
80 320000
Factory Building
50 200000
Factory Insurance

Repair & Maintaince of Plant 50 200000

Indirect Wages 40 160000

Electricity 110 440000


TOTAL 400 1600000

FACTORY COST 1200 4800000

Administrative Expenses:

Telephone & Postage Expenses


10 40000

Depreciation:

Furniture 200000
50
120000
Vehicle
30

Stationary 10 40000

Legal Expense 15 60000

680000
Salary 170

Miscellaneous Expenses 15 60000

Total
300 1200000

COST OF PRODUCTION 1500 6000000

Add: Opening Stock of Goods 3187500

Less: Closing Stock Of Finished Goods 4593750

Total 1312.29 4593750

Selling & Distribution Overheads:

Carriage Outward 34.29 120000

Bad Debts 32 112000

Trade Discount Allowed


25.15 88000

Transportation Expenses 22.85 80000


Total 114.29 400000

TOTAL COST 1426.79 4993750

Add: 20% PROFIT 285.36 998750

SALES 1712.14 5992500

Installed & Utilized Capacity: (2015-2016)

Installed Capacity in unit (p.a.) = 5000 unit

Utilized Capacity in unit (p.a.) = 4000unit

5. Cost Sheet for Year 2016-2017:


Particulars Per Kg (Rs.) Total Amount

Cost of Materials Consumed:

Direct Materials
500 2500000
Direct Wages 200 1500000

Direct Expenses 100 500000


PRIME COST 800 4000000

Factory Overheads:
Depreciation:
70 350000
Plant & Machinery
Factory Building 80 400000

Factory Insurance 50 250000


Repair & Maintaince of Plant 50 250000
Indirect Wages
40 200000
Electricity
110 550000

TOTAL 400 2000000

FACTORY COST 1200 6000000

Administrative Expenses:

Telephone & Postage Expenses


10 50000
Depreciation:

Furniture
50 250000
Vehicle
30 150000
Stationary
10 50000
Legal Expenses
15 75000
Salary
170 850000
Miscellaneous Expenses
15 75000
Total

300 1500000
COST OF PRODUCTION 1500 7500000

Add: Opening Stock of Goods 4593750

Less: Closing Stock Of Finished Goods 6046875

Total 1343.75 6046875

Selling & Distribution Overheads:

Carriage Outward
33.33 150000
Bad Debts 31.11 140000

Trade Discount Allowed 24.44 110000

Transportation Expenses 22.22 100000

Total
111.11 500000
TOTAL COST 1454.86 6546875

Add: 20% PROFIT 290.97 1309375

SALES 1745.83 7856250

Installed & Utilized Capacity: (2016-2017)

Installed Capacity in unit (p.a.) = 5000 unit

Utilized Capacity in unit (p.a.) = 5000 unit


1. TRADING ACCOUNT OF THE 1 st
YEAR

PARTICULARS AMOUNT Rs. PARTICULAR AMOUNT Rs.


TO PURCHASE BY SALES 1020000
Direct Materials 500000

Direct Wages 200000 BY CLOSING STOCK 750000

Direct Expenses 100000


Depreciation:

Plant & Machinery 70000

Factory Building 80000

Factory Insurance 50000

Repair & Maintaince of Plant 50000

Electricity 110000

Indirect wages 40000


TO GROSS PROFIT 570000
Total 1770000 1770000

PROFIT AND LOSS ACCOUNT OF THE 1st YEAR

PARTICULARS PARTICULAR AMOUNT Rs.


Telephone & Postage Expenses 10000 BYGROSS PROFIT 570000

Stationary 10000
Legal Expenses 15000

Salary 170000
Interest on Loan 1,30,000
Miscellaneous Expenses 15000

Selling & Distribution Overheads:

Carriage Outward
30000

Trade Discount Allowed 22000


Transportation Expenses 20000

Bad Debt 28000

Depreciation:

Furniture 50000

Vehicle 30000

TO NET PROFIT 40000


570000 570000

BALANCE SHEET AS ON DATE 31st MARCH 2013

LIABILITIES AMOUNT Rs. ASSETS AMOUNT Rs.


CAPITAL 11525000 LAND (6000 sq.meters) 8400000

(+) NET PROFIT 40000


11565000

BANK LOAN 10,00,000 BUILDING


FACTORY 16,00,000
(+)o/s interest 1,30,000 11,30,000
(-)Depreciation 80,000 1520000

FURNITURE 5,00,000
(-)Depreciation 50,000 4,50,000
MACHINERY 3,50,000
280000
(-)Depreciation. 70,000
CASH AND BANK 170000
CLOSING STOCK 1875000

12695000 12695000

2. TRADING ACCOUNT OF THE 2 nd


YEAR

PARTICULARS AMOUNT Rs. PARTICULAR AMOUNT Rs.


TO PURCHASE BY SALES
Direct Materials

Direct Wages BY CLOSING STOCK

Direct Expenses
Depreciation:

Plant & Machinery

Factory Building

Factory Insurance

Repair & Maintaince of Plant

Electricity

Indirect wages
TO GROSS PROFIT
PROFIT AND LOSS ACCOUNT OF THE 2nd YEAR

PARTICULARS PARTICULAR AMOUNT Rs.


Telephone & Postage Expenses BYGROSS PROFIT

Stationary

Legal Expenses

Salary
Interest on Loan
Miscellaneous Expenses

Selling & Distribution Overheads:

Carriage Outward

Trade Discount Allowed


Delivery Van Expenses

Bad Debt

Depreciation:

Furniture

Vehicle

TO NET PROFIT

BALANCE SHEET AS ON DATE 31st MARCH 2014

LIABILITIES AMOUNT Rs. ASSETS AMOUNT Rs.


CAPITAL 19564000 LAND (6000 sq.meters)

(+) NET PROFIT


BANK LOAN BUILDING
FACTORY
10,00,000
(-)Depreciation
11,30,000
(+)o/s interest 1,30,000

FURNITURE
(-)Depreciation
MACHINERY 7
(-)Depreciation
CASH AND BANK

CLOSING STOCK

3. TRADING ACCOUNT OF THE 3 rd


YEAR

PARTICULARS AMOUNT Rs. PARTICULAR AMOUNT Rs.


TO PURCHASE BY SALES
Direct Materials

Direct Wages BY CLOSING STOCK

Direct Expenses
Depreciation:

Plant & Machinery

Factory Building

Factory Insurance
Repair & Maintaince of Plant

Electricity

Indirect wages
TO GROSS PROFIT

PROFIT AND LOSS ACCOUNT OF THE 3rd YEAR

PARTICULARS PARTICULAR AMOUNT Rs.


Telephone & Postage Expenses BYGROSS PROFIT

Stationary

Legal Expenses

Salary
Interest on Loan
Miscellaneous Expenses

Selling & Distribution Overheads:

Carriage Outward

Trade Discount Allowed


Delivery Van Expenses

Bad Debt

Depreciation:

Furniture
Vehicle

TO NET PROFIT

BALANCE SHEET AS ON DATE 31st MARCH 2015

LIABILITIES AMOUNT Rs. ASSETS AMOUNT Rs.


CAPITAL 18693400 LAND (6000 sq.meters)

(+) NET PROFIT

964400

BANK LOAN BUILDING


FACTORY (6000 Sq .fts * 1200)
10,00,000
(-)Depreciation

(+)o/s interest 1,30,000

FURNITURE
(-)Depreciation
MACHINERY
(-)Depreciation.
CASH AND BANK

CLOSING STOCK
4. TRADING ACCOUNT OF THE 4 th
YEAR

PARTICULARS AMOUNT Rs. PARTICULAR AMOUNT Rs.


TO PURCHASE BY SALES
Direct Materials

Direct Wages BY CLOSING STOCK

Direct Expenses
Depreciation:

Plant & Machinery

Factory Building

Factory Insurance

Repair & Maintaince of Plant

Electricity

Indirect wages
TO GROSS PROFIT

PROFIT AND LOSS ACCOUNT OF THE 4th YEAR

PARTICULARS PARTICULAR AMOUNT Rs.


Telephone & Postage Expenses BYGROSS PROFIT
Stationary

Legal Expenses

Salary
Interest on Loan
Miscellaneous Expenses

Selling & Distribution Overheads:

Carriage Outward

Trade Discount Allowed


Delivery Van Expenses

Bad Debt

Depreciation:

Furniture

Vehicle

TO NET PROFIT

BALANCE SHEET AS ON DATE 31st MARCH 2016

LIABILITIES AMOUNT Rs. ASSETS AMOUNT Rs.


CAPITAL 17795600 LAND (6000 sq.meters)

(+) NET PROFIT

BANK LOAN BUILDING


FACTORY
10,00,000
(-)Depreciation

(+)o/s interest 11,30,000


FURNITURE
(-)Depreciation
MACHINERY
(-)Depreciation
CASH AND BANK

CLOSING STOCK

5.TRADING ACCOUNT OF THE 5 th


YEAR

PARTICULARS AMOUNT Rs. PARTICULAR AMOUNT Rs.


TO PURCHASE BY SALES
Direct Materials

Direct Wages BY CLOSING STOCK

Direct Expenses
Depreciation:

Plant & Machinery

Factory Building

Factory Insurance

Repair & Maintaince of Plant

Electricity

Indirect wages
TO GROSS PROFIT
PROFIT AND LOSS ACCOUNT OF THE 5th YEAR

PARTICULARS PARTICULAR AMOUNT Rs.


Telephone & Postage Expenses BYGROSS PROFIT

Stationary

Legal Expenses

Salary
Interest on Loan
Miscellaneous Expenses

Selling & Distribution Overheads:

Carriage Outward

Trade Discount Allowed


Delivery Van Expenses

Bad Debt

Depreciation:

Furniture

Vehicle

TO NET PROFIT
BALANCE SHEET AS ON DATE 31st MARCH 2017

LIABILITIES AMOUNT Rs. ASSETS AMOUNT Rs.


CAPITAL 16897800 LAND (6000 sq.meters) 12,900,000

(+) NET PROFIT

1464800

BANK LOAN BUILDING


FACTORY
10,00,000
(-)Depreciation

(+)o/s interest 1,30,000 1130000

FURNITURE
(-)Depreciation
MACHINERY
(-)Depreciation
CASH AND BANK

CLOSING STOCK
PLANS

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