1. Project Family Treeof Shaham & Friends SSI UnitDodhpur Aligarh Presented by: Abu Shaham 10-MBA-18

2. Project Family Tree ABU SHAHAM (Owner) Mohd Alam Shamsuzzama (Manager) (Chemist) Mujahid Misbah Nemat(Accountant) (Clerk) (Tech. staff) Urman Sarfaraz (Skilled labour) (Un skilled labour) Sissharth,Umar,Azhar,Nasir (Casual Labours)

3. Project to start a ball pen inkindustry in Aligarh PRODUCT CODE : XYZ PRODUCTION CAPACITY : Quantity : 12,000 litres (per annum) Value : Rs. 30,00,000 MONTH AND YEAR : January, 2013 In Sha Allah Dodhpur Aligarh UP 202002 Ph. No: xxxxxxxxxx Fax No: xxxxxxxxxx

4. Why ball pen Ink? Ball pen is one of the most essential items for students, educational institutions and for office work, etc. Ink is a viscous and coloured fluid composed of reflux blue, varnishes, oil and drier. This is a mass consumption item.

5. Market Potential Ball pen is the most common tool for all schools, colleges and university going students for writing purpose. As greater emphasis is being laid on removal of illiteracy by the government. The prospects of Ball pen ink industry is bright.

6. Basis And PresumptionsEfficiency and working hours 8 working hours/day/shift 300considered for full capacity days taken into accountutilization. annually.Time period for achieving full Within 2 months after trialcapacity utilization. production.Labours, wages and conditions. As per local salaries.

7. ContInterest rate for fixed and Average @ 14%working capital.Margin money Average 25%Rented shed With partition walls 20 21Costing of machinery and As per local rates.equipment.

8. Implementation Schedule1. Selection of site 2 months2. Collection of quotation for 2 monthsM/c and Equipment3. Procurement of machinery 1 month4. Placement of order for raw 1/2 monthmaterial5. Commercial production month 6 months Total

9. Technical AspectsProcess of Manufacture Metal complex dyes and complexes in castor oil/stand oil, varnishes and driers are mixed together in suitable proportions in a mixing machine. The material so produced is called ball pen Ink

10. ContQuality Control and Standards As per market demand.Production Capacity (per annum) Quantity 12,000 litres Value Rs. 30,00,000Motive Power Electric power 5 H.P. approx. Man power 8 Nos.Pollution Control No liquid or gaseous effluents are released during the process. Pollution is not involved.

11. Financial AspectsA. Fixed Capital(I) Shed of size (rented) 2020with partition wallsRs. 200 per month(ii) Machinery and Equipments

12. ContDescription of M/Es Qty. Price (Rs.)Mixing machine with motor Cap. 10 litres 1 60,000per 8 hrs.Weighing m/c platform type Cap. 50 kg. 1 15,000Shovel made of stainless steel material 4 4,000Scraper knife 4 1,600

13. ContStorage tank (for varnish and oil) 2 8,000 1Triple Roll Mill 50,000 13 Total 1,38,600

14. Cont(iii) Testing Equipments Qty. (Rs.)Fords cup 2 2,500Rectangular Glass Sheet 2 800Exhaust Fan (for pollution control) 1 800Cost of power connection,Electrification and installationCharges@ 10% of the cost of M/c. and 14,270equipments

15. Cont(iv) Total Cost of M/c. and Equipment Rs. 156970Cost of office equipments/working Tables and chairs etc. Rs. 5,000(v) Pre-operative Expenses Rs. 5,000(vi) Total Fixed Capital Rs. 1,66,970

16. B. Working Capital (per month) (i) Personnel Designation No. Salary Total (Rs.) (Rs.)1. Manager/Chemist 1 3,000 3,0002. Accountant/Clerk 1 2,000 2,0003. Skilled workers 2 1,500 1,500

17. Cont4. Unskilled workers 2 1,200 2,4005. Casual labour 2 1,000 2,000 12,400 Total(+) Perquisites @ 15% of salaries 1,860 14,260 Total

18. (ii) Raw material (per month) Item Qty. Rate Value (Rs.) (Rs.)a) Metal Complex dyes 200Kg. 400/ kg. 80,000b) Stand oil/castoroil/solvents 550 kg. 130/Kg. 71,500c) Varnishes (alkyd/Phenolic/Maleic) 250 Kg. 140/Kg. 35,000d) Drier 10 Kg. 230/Kg. 2,300 1,88,800 Total

19. (iii) Utilities (per month) (Rs.)a) Power 5 H.P. @ Rs. 3/unit 2,250 Utilitiesb) Water charges 500 2,750 Total

20. (iv) Other Contingent Expenses (per month) (Rs.) a) Rent of the shed 2,000 b) Postage and stationery 500 c) Consumable stores 500 d) Repairs and maintenance 500

21. Cont e) Transport charges 1,000 f) Advertisement and publicity 1,500 g) Insurance 1,500 h) Sales expenses and miscellaneous 1,000 expenditure Total 8,500

22. (v) Total Recurring Expenditure (per month) (Rs.) a) Raw material 1,88,800 b) Utilities 2,750 c) Salary/Wages 14,260 d) Other expenditure 8,500 2,14,310 Total

23. C. Total Capital InvestmentFixed capital Rs. 1,66,970Working capital for 3 months Rs. 6,42,930 Rs. 8,09,900 Total

24. Financial Analysis(1) Cost of production (per year) (Rs.)a) Total expenditure 25,71,720b) Depreciation on machinery @ 10% 14,270c) Depreciation on furniture @ 20% 1,000d) Interest on total capital investment 1,13,400 Total 27,00,390

25. Cont(2 )Turnover (per year) (Rs.)Ball Pen Ink 12 KL @ Rs. 250 per litre 30,00,000Net Profit Before Income Tax 2,99,610 10%Net Profit Ratio 37%Rate of Return 46.6%Break-even Point

26. (i) Calculation of Fixed Costa) Depreciation on m/c equipments and office 14,270equipmentsb) Rent of shed 24,000c) Interest on total investment 1,13,400d) Insurance 18,000e) 40% of salaries and wages 68,448f)40% of other contingent expenses 24,000 2,62,118 Total

27. Calculation Of B.E.PB.E.P = FC 100 FC+Profit = 2,6,2118 100 2,62,118+ 2,99,610 = 2,62,118 100 5,61,728 = 46.6%

28. Additional Information

29. Addresses of Machinery Suppliers M/s. Siddharth Engineering Ltd. Kolkatta M/s. Mushtaque Engg. Enterprises Basti M/s. Shabnam Eng. Co. Ltd. Ghazipur M/s. Fahad Industrial Estate, kochi M/s. Pandey Ltd. Banaras M/s. Ismail Engg. Pvt. Ltd. Aluva

30. Addresses of Raw Material Suppliers M/s. Sarfaraz Quinon Pvt. Ltd. Saharanpur M/s. Alam Product Deoband M/s. Rafnas Organics Ltd. Calicut M/s. Azhar Dye Stuff Industries Ltd. Aligarh M/s. Ali Chemical and Industry Ltd. Calicut

31. THANK YOU !!!