Professional Documents
Culture Documents
Project Report
On
Ups and Stabilizers
Submitted to:
Submitted by:
Sohail Ahmad 06
Mohammad Sajjad 18
Mohammad Waqas 19
DEDICATION
To
Dedicated
To
Our Parents
And
Preface
Project is a fundamental part of M.Sc (A/F) program because it
gives us practical knowledge of what we have learnt during our
study period. This report is written to fulfill the requirement
of our degree. Research project provides opportunities to have
been scrutiny and experience. This report process is valuable in
course of learning. This report is also a step of some chance of
practical experience form. In this report will be covering all vital
information and heir scanning exposures in the form of our
observation.
In this report we have tried our level’s best efforts to cover and
elaborate necessary inferences suitable to enhance the knowledge.
We hope our efforts of transfer of knowledge through this report
will be information gaining for readers.
Acknowledgement
This work would not have been possible without the support and
encouragement of my Teacher, Javid Iqbal under whose
supervision. We chose this topic and began the Project.
Executive summation
assembling unit
Address Office:
Product Ranges:
Ups ranges: 500v, 800, and 1000.
Stabilizer ranges: 500v, 800, and 1000.
Estimated capacity:
2011: 16800units
2012: 18500units
2013: 20000units
Total
70000000
Means of Finance:
Debt: 40%
Equity: 60%
SPONSORS.
The sponsors of the project are
professionally qualified and have valuable and extensive experience
of business management regarding. They have got good trading
contacts and market reputations in the city. The project faces not
problems in terms of marketing its product. The sponsor’s
experience would assist the firm in its smooth and profitable
operation.
Name of Sponsors:
1 Mohammad Waqas
2 Mohammad Sajjad
3 Mohammad Sohail
Name of suppliers
Irfan electronics Lahore
A ONE industry Gujranwala
Dynamic engineering Lahore
KB son’s electronics store Lahore
Elite screener Karachi
Modern screener Karachi
Modern battery centre Islamabad
Icon power system Islamabad
Pakistan steel corporation Rawalpindi
IMPLEMENTAION SCHADULE
TASK MONTHS
Financial ratios;
RATIOS 2011 2012 2013
- Gross Margin (%) 23.5% 39.1% 48.5%
- Operating Margin
(%) 9.0% 35.9% 35.7%
- Net Margin (%) 8.6% 34.1% 34.0%
Debt/equity ratio
Sponsors stake ratio
R A T I O S: 0
Current Ratio 1.65
Debt as %-age of total captlsn. 30%
IRR
Pay back period
. PROJECT BRIIEF
The goal for companies today is to attain and sustain business
continuity. Devices like UPS & stabilizer provide the required
backup and control power [voltage] fluctuation,
respectively. The escalating demand of alternate power devices
induce people to think of this successful business venture. Un-
interrupted power supply (UPS) & Stabilizer production is a
capital intensive business and requires huge investment
depending upon the technology and methodology employed for
the processing of these power machines. However, UPS &
Stabilizer assembling unit generally requires comparatively
less investment and can be considered by the Small and
Medium scale investors. The proposed project envisages setting
up of a UPS & Stabilizer assembling unit and their
distribution to the target market. UPS & Stabilizer assembling
unit business means setting up a workshop where
assembling takes place and an office area for carrying out
general administrative and marketing work. The business
facility will maintain inventory consisting of accessories
like transformers, transfer switches, printed circuit board and
housing used to assemble UPS & Stabilizer to meet the market
requirement and orders effectively. The company will divide
the store into two parts: one side will be used to store
accessories and the other finished products respectively.
OPPORTUNIITY RATIIONALE
Globally, a power crisis is spreading which has compelled the
consumers to fulfill their basic electricity need through some
alternative sources of power. In Pakistan, public and private
power generation units fail to meet the increasing electricity
requirements of population. Currently, out of 2,600 mega watts
load requirement, 2100 mega watts are provided to the public
connected to K.E.S.C network1. Even then there are frequent
disruptions of electricity which vary with seasonal demand. Major
slump is observed in summer season where sale of alternative
power sources like generators and UPS increase substantially,
while the existing producers / assemblers are constrained to
maintain equilibrium in demand and supply. This clearly indicates
the strong demand for UPS and stabilizer products.
The major two types of UPS generally used in the Pakistani market
are, online and stand by, while ‘relay’ and ‘servo’ are the most
reliable type amongst stabilizers brands which cater to the needs of
the local market. Ideally, the most common and ultimate
alternative power source is generator available with different
specification and usage criterion, usually used in industries where
load is comparatively much higher than households due to light
and heavy machines. UPS (stand-by) is the preferred option in the
industries like health care where the management cannot afford
power break down in their production. UPS is not only
gaining popularity in urban areas, but developed suburbs are also
tuned towards this new alternative power source. There are many
households and offices in Karachi and other parts of the country
which use UPS is being increasingly used as an alternate
source of electricity. The demand of UPS in Karachi is consistent
throughout the year and increases during summer in the urban
areas of Pakistan. UPS is the abbreviation of Un-interrupted Power
COMPANY DESCRIPTION:
Legal Status:
Market analysis:
BRIEF DESCRIPTION:
EX-
Factor 15739. 18370. 9802.3
y Price 65 8 8663.625 5
Retail
Price 16000 18500 9000 10000
CHANNELS OF DISTRIBUTION:
The final product of ups and
stabilizer will directly
supplied to wholesaler
eliminating role of agencies.
Distribution network of
product is illustrated below:
Technical analysis:
RAW MATERIAL:
Transfarmers
Transister
Circuit
Boxes
Heating Plates
Others
Transfarmers
Transister
Circuit
Boxes
Heating Plates
Others
List of machinery:
Cost
per
unit-
Items Technology Quantity Rs. Total cost
Electric winding
Machine Imported 5 44,000 220,000
Bench wising
Machine Local 6 2,500 15,000
200,00
plc training kit Imported 1 0 200,000
Electricity
It is assumed that the Electricity charges will be on
average 60000________70000Rs per month. Rs 40000
have been deposited in wappda which is non refund
able.
Technology involved:
Msc A/F 3rd
Power Plus Electronics
Personnel analysis:
REQUIRREMENT OF STAFF:
The following staff is required for power plus ups and
stabilizer industry. Different staff will perfume the
different functions.
Category Nos
Technical Manager 5
Production Manager 5
SKILLED TECHNICIANS 16
DIPLOMA ENGINEERS 12
TRANSFORMER TECHNICIANS 12
MECHANICAL TECHNICIANS 12
Chief Executive 3
Financial Controller 5
Purchase Manager 1
Computer Manager 1
Assistants 5
Clerks and Typists 4
Driver and Peons 5
Sweepers 2
31,525,00
- Project Land & Its Development 0
- Building & Civil
Works 20000000
-Foreign Machinery 1006600
- Local Machinery 700000
201,
- Engineering /Technical Fees 20% 320
- Erection & 50
Installation ,000
111,
- Furniture & Fixture 500
- Vehicles 4500712
2,499,
- Mark-up during Construction 288
- Pre-production Expenses 200000
- Contingencies 633080
MEANS OF FINANCE:
The main means of finance of power plus ups
and stabilizer industry are the sponsors and
the bank.
WORKING DAYS:
Power plus industry will carry operations in 290 days
in a year. Precisely it means that the company will
work in 42 weeks in a year.
Power
E S T I Plus
M A TElectronics
ED BALANCE SHEETS
SOURCES
Operating Profit 0 10,976,987 65,433,849
Add Back:
Depreciation 0 1,974,370
Amortiza
tion 50,000
Funds from Operations 0 13,001,357 66,158,956
- Other Income 0 0
Total Equity 42,000,000 42,000,000 42,000,000
- PICIC FCY 0
Silk Bank Loan 28,000,000 28,000,000 28,000,000
- Custom Debentures 0
Increase in Current
Liab. 0 13,437,317 16,464,912
Increase in Bank Borrowings 8,347,500 0
152,623,86
TOTAL SOURCES 78,347,500 96,438,674
=====
====== ====== =
APPLICATION OF FUNDS
Investment in Fixed Assets: 61,227,500 61,227,500 61,227,500
-Preliminary Exp 200,000 50,000
Financial Expenses 0 5,040,000 4,032,000
Repayment of :
Debt: 0 0
Silk Bank 5,600,000 5,600,000
- Custom Debentures
- ST TFCs
Workers Partcpn.
Fund 0 548,849 3,271,692
-Workers Wel.
Msc A/F 3rd Fund
Dividen
219,540 2,397,814
d 0 0
Increase in current Assets: 15,820,000 15,638,980 15,234,189
Financial ratios:
The different ratios and their interpretation is
following
R A T I O S: 0 0
Current Ratio 1.65 2.93 3.87 1.65
30%captlsn.
Debt as %-age of total 13% 5% 30%
Interpretations
1Current ratio is continuously increasing it means that current
assets of the company are increasing continuously or there is
a decrease in the current liabilities. A good company has a
good ratio of at least 1.25 The power plus industry has above
this standard which shows a good financial position
2Quick ratio is also increasing which means power plus industry
has high liquidity
3Debt is also very low hence there is very low risk involved in
the business. The company can easily cover the debts.
4The equity ratio shows that company is earning good on its
equity however a decrease is very dangerous.
5There is a huge sales being earned on the assets which shows
assets are being utilized in a good manner.
6Gross profit is also increasing which show company is easily
covering its direct cost
7The net profit margin shows that power plus industry industry
has a good growth rate now-a-days hence it will good in the
future
SWOT Analysis
Strengths:
Continuous availability & easy access of the raw material,
which mainly comprise ups and stabilizer.
Availability of skilled and non skilled workers..
Latest technology of manufacturing ups and stabilizer with high
working efficiency and trouble free operations.
Easy availability of spare parts.
Own Research & Development department for new design
creations.
Ups and stabilizer are the substitute of energy.
Ups and stabilizers are light in weight.
Ups and stabilizer can be move from one place to another places
easily.
Different ranges are available of ups and stabilizers.
WEAKNESSES:
Strict controls over the Labor efficiency need to be observed to
reduce the risk the minimum level
Heavy investment in the working capital
Ups and stabilizer are dependent on electricity.
OPPORTUNITIES:
The demand for ups and stabilizer remains alive and can’t end.
Increasing preference for the high quality of UPS AND
STABLIZER is increasing time to time.
THREATS:
Quality & design of the ups and stabilizer needs to be
considered very closely.
CONCLUTION ANDRECOMMENDATIONS:
Competitive Environment