Product Project Report On: A Royal Pressure Cooker

PPR ON PRESSURE COOKER
A
PRODUCT PROJECT REPORT ON
ROYAL PRESSURE COOKER
Prepared By :
BHENSDADIA BHAVIKA D..
Roll No.
07
Seat No.
Class
BBA SEM-5
Academic year:
2014-2015
College:
Matushri virbaima Mahila College of Commerce, Management & It
Guided by:
Prof. Dharti Nathwani
Prof. Kalpesh Radiya
Submitted To:
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Saurashtra University
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1. INTRODUCTION TO SMALL SCALE INDUSTRY
The small scale in India covers a wide spectrum of Industries categorized under
small, tiny and cottage segment ranging from small artisans handicraft units to
modern production units with significant investment. This sector has acquired a
prominent place in the country as it not only acts as a nursery for the development
of entrepreneurial talent but also produce a wide range of products.
In the Indian context, the small scale industry has been receiving due attention and
importance from the policy makers owing to its special characteristics, namely.
Low level of investment required.
High potential for creation employment opportunity.
Least location constraints.
There by contribution to a balanced regional development and high of local

resources.
ROYAL PRESSURE COOKER INDUSTRY will small scale industry. Investment
of royal pressure cooker industry is 1,00,00,000.ROYAL PRESSURE COOKER
INDUSTRY will produce pressure cooker. Pressure cooker will have feature like
Stylish, Hard Anodized, Time & Energy Efficient, Can be used on Gas Stove as
well as Induction Cook top.
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2. INTRODUCTION TO PRODUCT PROJECT REPORT
(1)
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(2)
3. PROJECT AT A GLANCE
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Name of the Unit
Royal partners firm
Tag line
Always tasty & fresh food
Promoters Name
BHENSDADIA BHAVIKA D..
Communication address
ROYAL pressure cooker industry

Survey no. 196,
Plot no.1&2,
Vill.: Veraval (shaper)
Dist. : Rajkot 360024
Registration office Address
ROYAL pressure cooker industry

Survey no. 196,
Plot no.1&2,
Telephone No.
Dist. : Rajkot 360024.

0281-314311
Fax No.
75-14311
Form of Organization
Partnership Firm
Size of the unit
Small Scale Unit
Brand Name
ROYAL
Usage of the product
Making food
SSI Registration No.
Applied For
Number of employee
30
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Investment
1,00,00,000
Day off
Wednesday
Sources of finances
60 % Ownership
Investment in working capital
40 % Borrowed
41,79,000
Investment in fixed capital
58,21,000
Relation with Bank
State bank of India
LOGO of Company
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4. PROMOTERS BACKGROUND
Name
Bhensdadia Bhavika d.
Age
26
Address
Astha Residency,
3G+ Apartment,
Sukanvila 201,
Rajkot-360004
Education/Qualification
MBA
Experience
2year
Nature of Responsibility
Managing marketing & finance
Contribution in the unit
60%
5. JUSTIFICATION OF LOCATION
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ROYAL PRESSURE COOKER strategically located at

SHAPER (VERAVAL) industrial estate. Location factors are crucial for the wealth
maximization of the firm ; therefore it is inevitable for every industrialist to
give full consideration to the suitable location of the enterprise . An
entrepreneur must choose an ideal location to have better performance .
Following are the factors to select shaper as the plant location
1.Availability of Raw-materials :Raw-material plays vital role to achieve quality
improvement
and cost reduction in production . Shaper is the best to get raw-material

easily because it is attached with national highway.
2.Availability of power and water:In modern era industry could not work without power. Adequate
electricity and regular flow of electricity allows greater freedom of choice
for location . Shaper(veraval)
has continuous flow of electricity so, shaper
( veraval ) is best possible location as out of the city area .The rate of
electricity is lower in shaper (veraval) because its known as industrial zone.Water
supply is also necessary for continuous production process.
3.Nearness to markets :Quickness in marketing action can be ensured by the being close to the
market, late deliveries can be avoided when plant is located near the market
. Industry have ready market for selling of product.
4.Availability of labor :-
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Worker or labor are the most imported person in the industry. If

labor gets easily then we can control or reduce the cost of production .Labors get at
very cheaper rate because of industrial zone.
RAJKOT
N/
H
-B
ROYAL
PRESSURE
COOKER
SHAPER
(VERAVAL)
LOCATION OF UNIT
:
ROYAL pressure cooker
Survey no. 196,
Plot no.1&2,
Dist. : Rajkot 360024.
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6. ORGANISATION STRUCTURE
PROMOTOR
PRODUCTIO
N MANAGER
HR
MANAGE
SUPERVISIOR
EMPLOYEES
MARKETIN
G
SALES MAN
WORKER
FINANCE
MANAGE
ACCOUNTANT
CLERK
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7. VISION& MISSION OF THE COMPANY

VISION:Vision of the ROYAL PRESSURE COOKER INDUSTRY will
maximum customer satisfaction by providing qualitative and good product to
customer. Job satisfaction of employee will also short goal of the industry.
MISION:Mission of ROYAL PRESSURE COOKER INDUSTRY will
expand market as well as market share of industry. industry want to convert small
scale industry in medium scale industry with the customer satisfaction. industry
want to build strong image in the market.
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8. BASIS AND PRESUMPTION
The proposed production of 36,000 per annum of gas lighter more than 300
working days in a year.
Shift
Working hours
Single shift
8:30Am to 8:00Pm
Break 12:30Pm to 2:00Pm
The unit requires 2 to 3 year to achieve full capacity utilization the first year,
company utilized 75% capacity.
The wages proposed in the project are as per privileged wage practice in the area.
Land value and construction cost has been taken on an average basis science it
varies from place to place.
The cost of machinery & equipment has been proposed after consulting the
machinery supplier nearly all the machines are available locally.
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9. IMPLEMENTATION SCHEDULE
The major activities in the implementation of the project have been
listed and the average time for implementation is estimated at 8-9 months.
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
Particulars
Preparation of Project Report
Acquisition of Land
SSI Registration
Approval of loan
Construction of Building
Acquisition of Machinery
Installation of Machinery
Arrangement of Power
Appointment of Staff &Labour
Time Period
1 Month
1 Month
1 Week
20 Days
1 Months
1 Month
15 Days
1 Month
15 Days
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1. PLANT LAYOUT
According to M.C.Muste : A good layout is one which always materials regularly and directly for processing
,this reduces transport ,handling, detail and other costs down per unit, space
requirements are minimize and reduced idea machine and idle man fine.
A technique of locating different machines and plant requires within
the factory so that the greatest possible output of high quality at the lowest possible
total cost be available. Proper plant layout is one of keys of success in factory
management. It signifies arrangement of machines work area transport shorting of
materials and processing to different parts.
ROYAL PRESSURE COOKER INDUSTRY will have S type plant layout which is
reduce the unnecessary motion of employees. Industry arrange their store room
near to production plan so Industry eliminate damage of raw-materials or finished
product. Industry also arranged his machinery in that way which reduce movement
of raw-material.
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2. RAW MATERIAL
The raw materials are the most important component of the production
process. When the raw materials are collected then and only then production is
possible. If the raw materials are available in the cheapest way it is the most
important advantage for the firm. The raw materials can be compared to water, air
and food for human beings which are very important so as the raw materials for the
firm.
Authors believe, The raw materials are like the parts of human body
without which the person cannot perform his activities. Raw materials are very
important requirements of every industry & mainly for manufacturing unit. The
production of any product is not possible without raw materials. Raw materials are
regarded as assets and are given or sold at higher price.
ROYAL PRESSURE COOKER INDUSTRY also consider the raw
materials as the key factor in production unit. The main raw material used in
Pressure cooker is: aluminum circle,wishel, gas kit, Bakelitehandle, balkPatti.
ROYAL PRESSURE COOKER INDUSTRY purchasing the raw material from
Jamnagar, veraval, vyara.
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3. MACHINERY AND EQUIPMENT

Like raw materials machinery is also available easily. Some of the mare
acquired from local market only & some are acquired from Ahmadabad city.
Sr.
Name of
No Machinery
.
1. Cutting
Machine
2.
3.
Stuffing
Machine
Sewing
Machine
Name of
Suppliers
shiventerprise
Rajkot
classic
machinery
Ahmadabad
Suner
machinery
Rajkot
Units
Rs. Per Unit
Amount
1.
4,00,000
4,00,000
2.
2,00,000
4,00,000
1,73,000
1,73,000
3.
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4.SUPPLIERS OF RAW MATERIAL & MACHINARY

Raw material will be the basic need of all types of organization of all medium and
large scale industry. Without raw materials production process will impossible.
Raw material is life blood of production department.
A) RAW MATERIAL
1)Aluminum Circle: BIC company
2)Wishel
: DR. BACK company
3)Gas Kit
: Dell korn company
4)Bakelite Handle : local market

5)Balk Patti
: graver company
B) MACHINARY
1)Cutting Machine
: Shiv Wiring industry

Ahmadabad
2)Stuffing Machine : Parth limited

Ahmadabad
3)Sewing Machine
: Tinytech pvt. ltd.

Surat
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5. FLOW CHART OF PRODUCTION PROCESS
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CCR
BAMA
PUA
USWS
ATK
FTS
CTE
FIEM
KI
INMA
INH
NGBT
NGO
GLE
GL
IR
EI
N
SA
G
L
CC
B
P
AU R
MU
AA
ST A
AF
CS
TT W
FS K
K
II NN
IE E N M
IN
MG A T E R I A L
GH O L E S
G B L IN G
G
6. PRODUCTION PROCESS
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The assembling process & manufacturing process of handle is not as critical as

other. It requires some amount of technical knowledge because the quality
production.
Manufacturing process involves following few operation;
Aluminum circle or required size will press in deep drawing press with the help of
suitable die
Edge of the cooker is out on spinning machine.
Cooker will than cleaned buffed on buffing machine on outer surface and sand
blasting will done in the inner surface with help of spray pump.
Primer coating will do into the outer surface and dried.

Teflon and few pigment will mixed in require proportions will made and coating
will done in the outer surface.
Cook ware thus produced will then take off and necessary fixing or handles etc is
made on it and then packed.
7. PRODUCTION CAPACITY AND QUALITY CONTROL

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Production Capacity
50%
No. of Working Days in a month 26 days

No. of Working Days in a Year
312 days
No. of Shifts per day
No. of Working hours per shift
Production Capacity per year
36,000
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8. POLLUTION
CONTROL
AND
ENERGY
CONSERVATION
POLLUCTION CONTROL:
The entrepreneur is advice to contact concerned state pollution control board for
detailed guidance in the matter.
However the water in this industry is generated during cleaning, washing, pretreatment blanching of raw material. It is advisable to test the water discharge as
per specification laid down by such treatment has been made in the profit.
Royal pressure cooker not any high conical and raw materials which spread
pollution. They follow government rules of pollution high walls in production
department to reduce the noise pollution.
ENERGY CONSUMPTION:
Although the energy requirement, its small yet some important point for
conservation of energy are given below.
1) In electronically installation appropriate electric machinery should be & properly
installed.
2) There should be no folt in machinery.
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9. QULITY CONTROL
Quality is near an accident; it is always the result of high
intention, sincere effort intelligent direction and skillful execution.
Above all, quality means setting the highest standards for their selves.
In industrial context quality is defined in much more functional fashion thus we
can say that quality means, Fitness for use whether for a product or service. It is
also considered as the sum total of the attributes or properties that describe the
product.
Today the existence of any manufacturing unit depends on the
quality of product or services it manufactures or supplies. The image or goodwill
of any unit is closely related to the quality of product made or supplied by that
unit;
In the ROYAL PRESSURE COOKERS Industry are too much
conscious about its product. Industry will have latest equipment for the checking of
raw-materials and finished product. So that Industry can maintain quality of their
product and build image in the market. Industry will first check finishing of cooker,
then test vishals test and at last pressure.
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1.MARKET POTENTIAL
The market potential for Pressure Cooker is huge. While there are a vast
no. of people who prefer to buy the Pressure Cooker Thus, initially we will
try to exploit this segment of market. We would also like to draw attention
People which use different type of pressure Cooker.
All public is fond of Pressure cooker especially in India. they used to
Cooking in lunch or dinner. In Market our product will be available easily.
We are producing and supplying the product as per the demand.
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2. MARKET SEGMENTATION
According to PHILIP KOTLER : Market segmentation is the sub dividing of a market in to homogeneous sub sets
of customers, where any sub sub-set may conceivably by selected as a market
target ton be achieved with distinct marketing mix.
The concept of market segmentation is based on the assumption
that markets are not homogeneous but are heterogeneous. Market segmentation
reflects reality in marketing situation. Market segmentation ensures higher
customer satisfaction and improves effectiveness of the marketing programmed.
Market segmentation is a customers oriented philosophy.
CRITERIA FOR MARKET SEGMENTATION:1. Geographic
2. Demographic
3. Psychographic
4. Socio economic
5. Marketing condition
ROYAL PRESSURE COOKER INDUSTRY segment his market on the basis of
geographic basis. Industry have local market. Industry has consumer users.
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3. PROMOTIONAL EFFORTS
This is the 4th & last topic of marketing mix. According to out study promotion is a
communication activity whole main object is to move forward or push forward a
product, service idea in a channel of distribution. The promotional activity always
attempts to afford knowledge, attitude, performance and behavior.
You have best product with fair price people will not buy it they have no many idea
regarding our product. So,it is very important to awards the people from the
existence of product, it feature, uses, benefit, etc. this aspect help in awaking
stimulating consumer demand for the product. Not only that but it also helps in
capturing & maintaining demand for product.
In modern marketing it is more tamp to attract the costmer by various promotional
tools gather than good product. Every company directly or indirectly plays, the role
of communicate and promoters.We are also going for sample testing.
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4. PRICING POLICY
Pricing decision play a vital role in the development of any industries
because pricing policy is the only factor in marketing mix of any firm which
produces the revenue.
The product for which the firm deals in the main material or we can say
product acts as the heart of human body in the field. The product is manufactured
in a proper & exact manner but if the sales department does work for it then the
efforts are useless.
There is various method of determining price of a product. Industry are as under.
1.
Cost plus pricing method
2.
Marginal pricing method
3.
Going rate pricing method

ROYAL PRESSURE COOKER INDUSTRY will has adopted COST PLUS
PRICING POLICY these types of prices cover the full cost occurred and
company adds some percentage of margins .
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5. DISTRIBUTION CHANNEL
According to WILLIAM J.STANTON:A channel of distribution for a product is the route taken by the
title to the goods as Industry move from the producer to the ultimate customers or
industrial users.
Distribution channel may be defined the set of marketing
institution participating in the marketing activities involve in the movement
or the flow of goods or distribution indicate rout pathways through which
goods and services flow from producer to customer . Channel of distribution
includes manufacturer , customer as well as intermediaries .
ROYAL PRESSURE COOKER INDUSTRY is ignore long
distribution channel. Distribution channel of Royal pressure cooker industry is as
follows :
PRODUCER
RETAILERS
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CUSTOMER
6. COMPETITORS
Without competitor you can never win
Competitor is one of the important partners of the companys success without
competition one can never know about his limitations but it is also the biggest
hardly in success of the company.
ROYAL PRESSURE COOKER INDUSTRY also her some competitors but
because of good performance of them Industry are able enough to face and
compete with then
Competitors of ROYAL PRESSURE COOKER INDUSTRY
Prestige pressure cooker

Vikaspressure cooker
Hawkins pressure cooker
Kumar pressure cooker
Surajpressure cooker
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1. TOTAL FIXED ASSETS

A) Land & building
Land
25,00,000
Land development & fencing
1,00,000
Factory Building
5,00,000
Office building
3,00,000
Storage house
3,00,000
Bore well
50,000
Water tank
40,000
Main gate
50,000
Watchmans Cabin
50,000
Lavatory & bathroom
50,000
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Total
39,40,000
B)
Plant & machinery
Sr No.
Particular
Quantity
Rate per Value

machine
1.
Cutting Machine
4,00,000
4,00,000
2.
Stuffing Machine
2,00,000
4,00,000
3.
Sewing Machine
1,73,000
1,73,000
Total
7,73,000
9,73,000
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C) Preliminary expenses
Sr. No.
Particular
Rs.
1. 1.
Consultancy fees
20,000
2. 2.
Project report preparation fees
30,000
3. 3.
Legal expenses of company formation
30,000
Total
80,000
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D) Furniture
Sr
No.
Name of the item
Quantity
Rate per unit
Amount
1.
2.
3.
4.
5.
6.
7.
Ordinary table
Computer table
Chairs
Sofa seta
Fans
Light
Door &
windows
8
4
120
4
26
32
10
20
6,000
5,000
500
30,000
1,500
500
6,000
4,000
48,000
20,000
60,000
1,20,000
39,000
16,000
60,000
80,000
8.
9.
10.
11..
C.C.T.V. camera
Air conditioners
Refrigerators
Computers
TOTAL
7
4
3
4
242
5,000
35,000
30,000
30,000
1,53,500
35,000
1,40,000
90,000
1,20,000
8,28,000
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TOTAL FIXED ASSETS
Particular
Rs.
Land & building
39,40,000
Plant & machinery
9,73,000
Preliminary expenses
80,000
Furniture
8,28,000
Total
58,21,000
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2. TOTAL WORKING CAPITAL

A)
RAW MATERIAL (MONTHLY)

Sr No.
Particular
Quantity
Kg.
Rate per Amount Rs.

Kg.
1. 1.
Aluminum circle
1,500
100
1,50,000
2. 2.
Wishel
2,250
100
2,25,000
3. 3.
Gas kit
3,000
100
3,00,000
4.
Bakelite handle
3,000
100
3,00,000
5.
Balk Patti
3,000
100
3,00,000
12,750
500
12,75,000
TOTAL
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B) Salary and wages

Designation
No.
employee
of Salary
month
per Total
amt.
monthly
General manager
14,500
14,500
Factory manager
12,500
12,500
Supervisor
10,000
10,000
Clark-cum cashier
10,000
10,000
Foreman
3,000
6,000
Computer operator
6,000
6,000
Salesman
4,000
4,000
Store keeper
3,000
3,000
Peon
2,000
2,000
10
65,000
68,000
TOTAL
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Particular
Monthly amt.
Power
10,000
Fuel
4,000
Water
5,000
Oil and Grease
1,000
TOTAL
20,000
C) Utility (production facilities)
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C) Other expenses
Particular
monthly
Postage & stationary
3,000
Telephone charges
4,000
Transport charges
6,000
Advertisement expenses
5,000
Insurance
2,000
Repair & maintenance
5,000
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Selling expenses
4,000
Other miscellaneous expenses
1,000
TOTAL
30,000
TOTAL WORKING CAPITAL
Sr No.
Particular
Amount
A.
Raw material
12,75,000
B.
Salary and wages
68,000
C.
Utility
20,000
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D.
Other expenses
30,000
Working capital *3month
13,93,000*3
Total working capital
41,79,000
(3) TOTAL INVESTMENTS
Sr No.
Particular
Amount
1.
Total Fixed Assets
58,21,000
2.
Total Working Capital
41,79,000
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Total Investments
1,00,00,000
(4) SOURCES OF CAPITAL
Total investment
1,00,00,000
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Owned capital
(60%)
60,00,000
Borrowed capital
(40%)
40,00,000
(5) LOAN REPAYMENT SCHEDUALE
Year
Opening balance
Interest12%
Closing
1.
40,00,000
6,00,000
36,00,000
2.
36,00,000
5,40,000
32,00,000
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3.
32,00,000
4,80,000
28,00,000
4.
28,00,000
4,20,000
24,00,000
5.
24,00,000
3,60,000
20,00,000
6.
20,00,000
3,00,000
16,00,000
7.
16,00,000
2,40,000
12,00,000
8.
12,00,000
1,80,000
8,00,000
9.
8,00,000
1,20,000
4,00,000
10.
4,00,000
60,000
(6) DEPRICIATION FIXED ASSETS
(1)
YEAR
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Name of the assets

Land & building (10%)
(2)
Opening
Depreciation
Closing
balance
balance
39,40,000
3,94,000
35,46,000
Plant & machinery (15%)
9,73,000
1,45,950
8,27,050
Furniture (10%)
7,08,000
70,800
6,37,200
Computer (60%)
1,20,000
72,000
48,000
YEAR
Name of the assets

Opening
Depreciation
Closing
balance
balance
35,46,000
3,54,600
31,91,400
8,27,050
1,24,057
7,02,993
Furniture (10%)
6,37,200
63,720
5,73,480
Computer (60%)
48,000
28,800
19,200
(3) YEAR
Name of the assets
Opening
Depreciation
Closing
balance
balance
31,91,400
3,19,140
28,72,260
7,02,993
1,05,449
5,97,545
Furniture (10%)
5,73,480
57,348
5,16,132
Computer (60%)
19,200
11,520
7,680
(7) ESTIMATED PRODUCTION AND SALES

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(A) Estimation of production

Sr No.
1. 1.
Production
capacity
50%
Unit of production
2. 2.
75%
27,000
3. 3.
100%
36,000
18,000
(B) Estimated sales
year
Opening
Productio
stock (unit) n (unit)
Sales (unit)
Closing
stock(unit)
1.
18,000
16,200
1,800
2.
1,800
27,000
26,100
2,700
3.
2,700
36,000
35,100
3,600
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(8) STOCK OF RAW MATERIAL
Particular
Year-1
Opening stock (unit)
Year-2
Year-3
1,800
2,700
19,800
27,900
36,900
18,000
27,000
36,000
1,800
2,700
3,600
+ purchases (unit)
_ Consumption
Closing
Rs.
stock
in
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(9) TOTAL FIXED EXPENSES
Particular
Amount
Salary & wages (60%)
4,89,600
Utilities (50%)
1,20,000
Other expenses (70%)
2,52,000
Total fixed expenses
8,61,600
Fixed cost per unit =
Total Fixed Cost At 100%

Total production at 100%
8,61,600
36,000
23.93
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(10) TOTAL VARIABLE EXPENSES
Particular
year
Raw material
36,00,000
Salary & wages (40%)
6,52,800
Utility (50%)
2,40,000
Other expenses (30%)
2,16,000
Total
47,08,800
Variable cost per unit = Total Variable Expense

47,08,800
36,000
130.8
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(11) TOTAL COST
Total cost = total fixed expenses + total variable expenses

= 8,61,600 +47,08,800
=55,70,400
Total cost per unit =
Total Cost
= 55,70,400
36,000
154.733
53
MVM COLLEGE RAJKOT
(12) BREAK EVEN POINT IN UNIT
Break Even Point In Unit = Total fixed expenses

Selling price variable Cost
=
8, 61,600
500130
2,328
54
MVM COLLEGE RAJKOT
(13) BREAK EVEN POINT IN RS.

Break Even Point in Rs. =
BEP in Rs.* selling price per unit
2,328*500
11,64,000 RS.
55
MVM COLLEGE RAJKOT
TABLE SHOWING FIGURES OF SALES
year
Prod. Capacity
sales
(unit)
selling
total
price per Rs.
unit Rs.
sales
50%
16,200
500
81,00,000
75%
26,100
500
1,30,50,000
100%
35,100
500
1,75,50,000
56
MVM COLLEGE RAJKOT
particular
year-1
year-2
year-3
Salary & wages

(60%)
4,89,600
4,89,600
4,89,600
Utilities (50%)
1,20,000
1,20,000
1,20,000
Other exp.
(70%)
2,52,000
2,52,000
2,52,000
total
8,61,600
8,61,600
8,61,600
TABLE SHOWING FIXED EXPENSES
57
MVM COLLEGE RAJKOT
TABLE SHOWING VARIABLE EXPENSES

Particular
Raw material
year-1
year-2
year-3
18,00,000
27,00,000
36,00,000
Salary
&
wages (40%)
3,26,000
4,89,000
6,52,800
Utility (50%)
1,20,000
1,80,000
2,40,000
Other
expenses
(30%)
Total
1,08,000
1,62,000
2,16,000
23,54,400
35,31,600
47,08,800
(100%)
58
MVM COLLEGE RAJKOT
(14) TRADING ACCOUNT
(1)
YEAR
Particular
Rs.
Particular
Rs.
59
MVM COLLEGE RAJKOT
To opening stock
Raw material
0
Finish goods
0
To purchase of material
To salary & wages
To utilities
By sales
Cash-40% 32,40,000
_ Credit-60% 48,60,000
19,80,000
3,26,000 By closing stock
1,20,000 Raw material
Finish goods
81,00,000
1,80,000
9,00,000
67,53,600
Gross Profit
91,80,000
91,80,000
(15) PROFIT AND LOSS ACCOUNT
60
MVM COLLEGE RAJKOT
(1)
YEAR
Particular
Rs.
To salary & wages

To utilities
To other expenses
Fixed exp. 2,52,000
Variable exp.1,08,000
Particular
4,89,600 Gross profit
Rs.
67,53,590
1,20,000
3,60,000
To depreciation
Land & building
Plant & machinery
Furniture
Computer
3,94,000
1,45,950
70,800
72,000
6,00,000
3,60,000
To interest on bank loan

To interest on capital
(6%)
To preliminary expenses
80,000
12,18,372
28,42,868
To provision for taxes

NET PROFIT
67,53,590
67,53,590
(16) BALANCE SHEET

61
MVM COLLEGE RAJKOT
(1)
YEAR
liability
Own capital 60,00,000
+ Interest on
Capital
3,60,000
+ Net profit 28,42,868
Rs.
92,02,868
Creditors
35,46,000
Plant &
Machinery 9,73,000
- dep.
1,45,950
8,27,050
36,00,000
12 % Bank loan
Out Standing Interest
on Loan
Rs.
Land &
Building 39,40,000
- dep.
3,94,000
12,18,372
Provision for taxes
Assets
6,00,000
2,97,000
Furniture
- dep.
7,08,000
70,800
Computer
- dep.
1,20,000
72,000
29,700
Debtor
Bills Receivable
preliminary Expenses 80,000
- Written off 8,000
Bills Payable
Closing stock
Raw material
+ finish Goods
1,49,47,940
6,37,200
48,000
48,60,000
36,45,000
72,000
1,80,000
9,00,000
2,32,690
Cash in hand
1,49,47,940
62
MVM COLLEGE RAJKOT
TRADING ACCOUNT
(2)
YEAR
Particular
To opening stock
Raw material
Finish goods
To salary & wages
To utilities
Rs.
1,80,000
9,00,000
27,90,000
4,89,600
1,80,000
Particular
By sales
Cash-40% 52,20,000
Credit-60% 78,30,000
By closing stock
Raw material
Finish goods
Rs.
1,30,50,000
2,70,000
13,50,000
1,01,30,400
Gross Profit
1,46,70,000
1,46,70,000
63
MVM COLLEGE RAJKOT
PROFIT AND LOSS ACCOUNT
(2)
YEAR
Particular
Rs.
Particular
To salary & wages

To utilities
To other expenses
Fixed exp. 2,52,000
Variable exp. 1,62,000
4,89,600
1,20,000
Gross profit
To depreciation
Land & building
Plant & machinery
Furniture
Computer
3,54,600
1,24,057
63,720
28,800
Rs.
1,01,30,400
6,09,600
5,40,000
To interest on bank loan 5,52,172

80,000
22,09,035
(6%)
64
MVM COLLEGE RAJKOT
51,54,416
NET PROFIT
1,01,30,400
1,01,30,400
BALANCE SHEET
(2)
YEAR
liability
Own capital 92,02,868
+ Interest on
Capital
5,52,172
Rs.
1,49,09,456
22,09,035
Provision for taxes
Creditors
Bills Payable
Rs.
Land &
Building 35,46,000
- dep.
3,54,600
31,91,400
Plant &
Machinery 8,27,050
- dep.
1,24,057
7,02,993
32,00,000
12 % Bank loan
Out Standing Interest
on Loan
Assets
5,40,000
4,18,500
Furniture
- dep.
6,37,200
63,720
Computer
- dep.
48,000
28,800
41,850
Debtor
Bills Receivable
- Written off 2,000
5,73,480
19,200
78,30,000
58,72,500
72,000
65
MVM COLLEGE RAJKOT
Closing stock
Raw material
+ finish Goods
2,13,18,841
2,70,000
13,50,000
14,37,268
Cash in hand
2,13,18,841
TRADING ACCOUNT
(3)
YEAR
Particular
Rs.
Particular
Rs.
66
MVM COLLEGE RAJKOT
To opening stock
Raw material
Finish goods
2,70,000
13,50,000
To salary & wages
To utilities
36,90,000
6,52,800
2,40,000
By sales
Cash-40% 70,20,000
Credit-60% 1,05,30,000
By closing stock
Raw material
Finish goods
1,75,50,000
3,60,000
18,00,000
1,35,07,200
Gross Profit
1,97,10,000
1,97,10,000
PROFIT AND LOSS ACCOUNT

(3)
YEAR
67
MVM COLLEGE RAJKOT
Particular
Rs.
Particular
To salary & wages

To utilities
To other expenses
Fixed exp. 2,52,000
Variable exp. 2,16,000
4,89,600
1,20,000
Gross profit
To depreciation
Land & building
Plant & machinery
Furniture
Computer
3,19,140
1,05,448
57,348
11,520
To interest on bank loan

(6%)
8,94,567
80,000
31,44,293
Rs.
1,35,07,200
4,68,000
4,80,000
73,36,684
NET PROFIT
1,35,07,200
1,35,07,200
BALANCE SHEET
(3)
YEAR
liability
Rs.
Assets
Rs.
Land &
68
MVM COLLEGE RAJKOT
Own capital
1,49,09,456
+ Interest on
Capital
8,94,567
Provision for taxes
2,31,40,70
7
Building 361,91,400
- dep.
3,19,140
28,72,260
Plant &
Machinery 7,02,993
- dep.
1,05,448
5,97,545
31,44,293
Furniture
- dep.
5,73,480
57,348
Out Standing Interest on 4,80,000

Loan
5,53,500
Computer
- dep.
19,200
11,520
Creditors
Debtor
Bills Receivable
- Written off 2,000
12 % Bank loan
28,00,000
55,350
Bills Payable
5,16,132
7,680
1,05,30,000
78,97,500
72,000
3,60,000
18,00,000
Closing stock
Raw material
+ finish Goods
55,20,733
Cash in hand
3,01,73,850
3,01,73,85
0
(17) STATEMENT OF PROFITABILITY

69
MVM COLLEGE RAJKOT
particular
year-1
year-2
year-3
sale
-variable
81,00,000
23,54,400
1,30,50,000
35,31,600
1,75,50,000
47,08,800
contribution
-fixed exp.
57,45,600
8,61,600
95,18,400
8,61,600
1,28,41,200
86,600
EBDIT
-Dep.
48,84,000
6,82,750
86,56,800
5,71,177
1,19,79,600
4,93,456
EBIT
-Int.on loan
Int.on capital
42,01,250
6,00,000
3,60,000
80,85,623
5,40,000
5,52,172
1,14,86,144
4,80,000
8,94,567
EBT
-Tax @ 30%
32,41,250
9,72,375
69,93,451
20,98,035
1,01,11,577
30,33,473
PAT
22,68,875
48,95,416
70,78,104
(18) COST SHEET

70
MVM COLLEGE RAJKOT
PARTICULARS
YEAR -1
Opening stock of raw material
YEAR -2
YEAR -3
1,80,000
2,70,000
(+) purchase of Raw material
19,80,000
27,90,000
36,90,000
(-) Closing stock of Raw material
1,80,000
2,70,000
3,60,000
Consumption of Raw material
18,00,000
27,00,000
36,00,000
(+) salary wages
3.26,000
4,89,000
6,52,800
(+) Utilities
1,20,000
1,80,000
2,40,000
22,46,000
33,69,000
44,92,800
(+) Utilities
1,20,000
1,20,000
1,20,000
Factory cost
23,66,000
34,89,000
46,12,800
(+) salary-wages
4,89,600
4,89,600
4,89,600
(+) Other expenses
2,52,000
2,52,000
2,52,000
Office cost
31,07,600
42,30,600
53,54,400
(+) opening stock of finished goods
9,00,000
13,50,000
(-) Closing stock of finished goods
9,00,000
13,50,000
18,00,000
22,07,600
37,80,600
49,04,400
1,08,000
1,62,000
2,16,000
23,15,600
39,42,600
51,20,400
(+) profit
57,84,400
91,07,400
1,24,29,600
Sales
81,00,000
1,30,50,000
1,75,50,000
Prime cost
Cost of production
(+) Other expenses
Total cost
71
MVM COLLEGE RAJKOT
72
MVM COLLEGE RAJKOT
RISK FACTOR
Every new business needs to determine its risk factors that the business will face. If
risk factors are carefully determined then the entrepreneur can take better measure
to see that they have limited effect on the business following are some of the risks
that the new business will face: The risk of failure of the position
It may take time to beat the competitors product.
Due to heavy advertising, it might prove to be expensive and might not give
desired results.
Initially, the production would be low but cost of production may be higher.
The business would take a longer period to reach breakeven point.
Initially, the required amount of sales will not be achievable and will result in loss.
73
MVM COLLEGE RAJKOT
Non-acceptance from the customers side.
74
MVM COLLEGE RAJKOT
75
MVM COLLEGE RAJKOT
SWOT ANALYSIS
Full form of SWOT:
STRENGTH: Satisfaction of the consumer about the product of the company is main strengths.
Best operation control for quality assurance.
WEAKNESS:-
lack of co-ordination between various departments.
OPPORTUNITIES: Every year 10% market growth and demand is higher than supply.
THREATS: Government rules and regulation change every time.
76
MVM COLLEGE RAJKOT
77
MVM COLLEGE RAJKOT
FUTURE PLAN
Every units aims at its growth and development in future at the time of
establishment. The future development of any unit shows its success in the market.
Future development may be getting through the increasing installed capacity or
utilizing the existing resources of the unit to the full extend.
So far as our unit is concern we have to utilize fully the available resources of our
unit and by increasing production capacity we want to cover none market share
with maintenance of good quality.
There are so many varieties of pressure cooker in the market. The consumption of
pressure cooker has been increasing over the year. We want to cover more market
in India as well as in international level.
78
MVM COLLEGE RAJKOT
79
MVM COLLEGE RAJKOT
CONCLUSION
The motto of ROYAL PRESSURE COOKER will be to provide best quality, with
fever prices. The company will have to continue same motto and provide better at
lower rate.
One of the good things will be that we will hold briefing discussion every day. In
which, we discuss the problem and find solution.
Every business unit wants to earn maximum profit. But, ROYAL
PRESSURE COOKER aim will not only earn maximum profit but also take care
of people health.
We will never compromise with quality .this will be the way by which we can
capture the market as well as earn profit.
80
MVM COLLEGE RAJKOT
81
MVM COLLEGE RAJKOT
Reference Book:
1.
Marketing Management
Philip Kotler
2.
Marketing Management
S.A Sherlekar
3.
Finance Management
Khan & Jain
82
MVM COLLEGE RAJKOT
83
MVM COLLEGE RAJKOT

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PPR ON PRESSURE COOKER

BHENSDADIA BHAVIKA D..

PPR ON PRESSURE COOKER

PPR ON PRESSURE COOKER

1. INTRODUCTION TO SMALL SCALE INDUSTRY

Low level of investment required.

High potential for creation employment opportunity.

Least location constraints.

There by contribution to a balanced regional development and high of local

PPR ON PRESSURE COOKER

2. INTRODUCTION TO PRODUCT PROJECT REPORT

PPR ON PRESSURE COOKER

PPR ON PRESSURE COOKER

Name of the Unit

Royal partners firm

Always tasty & fresh food

BHENSDADIA BHAVIKA D..

ROYAL pressure cooker industry

Registration office Address

ROYAL pressure cooker industry

Dist. : Rajkot 360024.

Size of the unit

Small Scale Unit

Usage of the product

SSI Registration No.

PPR ON PRESSURE COOKER

Investment in working capital

Investment in fixed capital

Relation with Bank

State bank of India

PPR ON PRESSURE COOKER

Managing marketing & finance

Contribution in the unit

PPR ON PRESSURE COOKER

ROYAL PRESSURE COOKER strategically located at

and cost reduction in production . Shaper is the best to get raw-material

has continuous flow of electricity so, shaper

PPR ON PRESSURE COOKER

Worker or labor are the most imported person in the industry. If

PPR ON PRESSURE COOKER

PPR ON PRESSURE COOKER

7. VISION& MISSION OF THE COMPANY

PPR ON PRESSURE COOKER

8. BASIS AND PRESUMPTION

PPR ON PRESSURE COOKER

PPR ON PRESSURE COOKER

PPR ON PRESSURE COOKER

PPR ON PRESSURE COOKER

PPR ON PRESSURE COOKER

3. MACHINERY AND EQUIPMENT

Rs. Per Unit

PPR ON PRESSURE COOKER

4.SUPPLIERS OF RAW MATERIAL & MACHINARY

: DR. BACK company

: Dell korn company

4)Bakelite Handle : local market

: Shiv Wiring industry

2)Stuffing Machine : Parth limited

: Tinytech pvt. ltd.

PPR ON PRESSURE COOKER

5. FLOW CHART OF PRODUCTION PROCESS

PPR ON PRESSURE COOKER

PPR ON PRESSURE COOKER