tappen industry

PRODUCT PROJECT REPORT ON

‘TAPPEN INDUSTRY’

PREPARED BY

TILALA SAGAR R.

ACADEMIC YEAR

2013-2014

CLASS

TY BBA SEM – 5

ROLL NO - 56

DIVISION - C

GUIDED BY

Prof. Jagdish mulchandani

SUBMITTED TO

SAURASHTRA UNIVERSITY

RAJKOT

GYANYAGN COLLEGE OF SCIENCE & MANAGEMENT RAJKOT

DECLARATION

I the undersigned TILALA SAGAR R. a student of BBA SEM.-5

hereby declare that the project work presented in this report is my own

work and has been carried out under the supervision of Prof. Jagdish

mulchandani of GYANYAGN College, Rajkot.

This work has not been previously submitted to any other

university for any examination.

Date :-

Place :-

Signature

ACKNOWLEDGEMENT

It is really a matter of great pleasure for me to present this creative

and practical work. At this stage, project report is an important part of

learning & every entrepreneur prepares it before starting of actual

production.

I have taken this opportunity to express my sincere thanks to all

those who helped me in the preparation of this report. First of all I would

like to thank my parents who have encouraged me for preparing such a

perfect product project report, then Prof. Jagdish mulchandani for his

guidance.

I am very glad to submit the report before the Saurashtra

University. I have tried my level best to present the available

information in the best possible manner.

Preface

India is very large Country & the Indian economy is a developing economy

at present. So, each & every industry has great opportunities to achieve higher &

higher growth. Moreover our country is very much populated. So, there is good

market available for producers for their product. That is why the many overseas

companies come to India to get the benefit of large no. of consumer available.

“Learning by Doing” is the hidden condition of Management course. The

theoretical knowledge has its own limitation. So, the preparation of product project

report plays a dominant role to develop the practical viewpoint of students and also

making them aware about the problem, Opportunities & situations of small scale

industries. It is the modest way to develop entrepreneurial skills, ability & aptitude.

Keeping in mind the important role of SSI units, Saurashtra University,

Rajkot has prescribed a product project report for small scale units in its syllabus

particularly for introducing a subject entrepreneurship and management of small

Business.

I have tried to cover all the relevant points and have tried to give in most &

in systematic manner.

INDEX

Sr.no. Particular Page no.

1. General information 1

2. Production Department 9

3. Personnel Deparment 17

4. Marketing Department 24

5. Finance Department 31

6.

List of supplier of machinery & raw

materials 56

7. Future plans 57

8. Risk factors 58

9. Conclusion 59

10. Bibliography 60

2

General information

sr. no. Particular Page no.

1 Introduction 3

2 Project at glance 4

3 Owner’s Bio-data 5

4 Proposed location justification 6

5 Organization structure 8

3

Introduction

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 producer 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.

In this project report of small scale industry. I have selected produce

Mobile Stove as my product. The product selected by me is newly

lunched and it has Monopoly in the market. And there is no competition

in the market for Mobile stove.

4

Project at glance

Unit’s Name : TAPPEN INDUSTRY PVT. LTD.

Address for Communication : TAPPEN INDUSTRY PVT. LTD.

2- PATEL NAGAR,

KOTHARIYA MAIN ROAD,

RAJKOT-360 002.

Type of Unit : sole proprietor firm

Product : Stove

S.S.I Registration No. : Applied for

Subsidy Registration No. : No Subsidy Taken

Location of the Unit : TAPPEN INDUSTRY PVT. LTD.

2- PATEL NAGAR,

KOTHARIYA MAIN ROAD,

RAJKOT-360 002.

5

Owner’s Bio-data

Name :- TILALA SAGAR R.

Address :- “krushna kunj”

1, geeta nagar,

Rajkot – 360002

Age :- 20 years

Educational qualifications :- BBA

Experience :- Fresh

Role in unit :- Chairman

6

Proposed location justification

This decision on location is very vital point to be considered while

establishing a unit. Following factors were considered before deciding on the

location of the unit:-

Type of Industry Available

The Rajkot region of Saurashtra has been selected for establishing unit

because it is the native place of the partners so one can do business without going

outside. Beside labor is also available in ample and at low rates here.

Infrastructure

Infrastructural facilities like roads, railways, water, electricity etc should be

available. Rajkot is a developing city and comes under the jurisdiction of

Mahanagar Palika. Thus all the infrastructure facilities are available here.

1. Electricity:

Power is the main facility which is required for operating the oil

machine as this machine are totally depends on electricity & it is provided

by G.E.B. uninterrupted whole week accept Wednesday which is holiday in

this area.

7

2 Water:

Water is required for the purpose of drinking water for the workers

and for the production as this facility is also well flourished over here by the

management.

3 Transportation:

As there is transport facility available in Rajkot. So it is very

convenient for customers to reach to our site and also for us to supply

products to our valued customers.

4 Communication:

As TAPPEN Indu. is one of the parts of RAJKOT so there is an easy

availability of B.S.N.L. which provides basic telephone, mobile tower, &

internet facility too.

5 Raw Material:

Here the raw material for production of stove is available at

reasonable price and adequate quantity

8

ORGANIZATION STRUCTURE

When you want to study about an Organization then first you must study

about Organization system. It means Organization structure. In it you can know the

position and the place of chairman, director, manager, assistant, salesman, etc….

and also you can know the level of the Organization structure.

The term Organization means a group of individual co-ordinate in to

difference levels of authority, responsibility and segment of specialization of the

industry.

So far as Tappen indu. is concerned, there is an excellent Organization

structure where the authority over upwards to downward and compliments going

downwards to up wards. As result, major decision are taken by the top-level

executives and passed to sub ordinates.

The internal form of the Organization adopted is in Organization and line of

accountability is clear well defined.

10

Production department

Sr. no. Particular Page no.

1 Product Introduction 11

2 Product uses 13

3 Production schedule 15

4 ACQUISITION OF

MACHINERY 16

11

Product Introduction

The product is the most tangible and important single component

of the marketing program. The product is bundle of all kind of

satisfaction of both material and non-material kinds with including

physical object, design, brand, package, label, price, services, supportive

literature etc.

Here the product which will be produced by me is one kind of

stove. There are many types of stoves available in the Market such as

Ashok Stove, Anmol Stove etc. but this stove is something different than

others. It is designed with including very differentiate features with

keeping in mind the limitations of the stoves available in the Markets.

The product is innovative and very useful for the target Market. It

is capable enough that it can easily satisfy the wants and needs of the

consumers.

12

Generally, the stove requires wood or coal in its use, which creates

Air pollution in the Environment, but to use this stove there is no need of

all such materials. Only 1 Chemical Tablet is used which is free from

smoke or any type of Air Pollution.

The other differentiable feature is its price, weight and its Mobility.

That is, the weight of the product is only 20 Grams. So, we can easily

keep it in our purse of pocket. It has a higher mobility feature also.

Though its weight is only 20 Grams, its capacity is of 50 Kgs.

Due to its less weight and higher Mobility. We can easily keep it

with us. Anywhere we go. i.e. at Picnic, at Yatra or Paricrama and for

long journey in trains also. The prices are also very less as compare to

the others. Thus, because of the lesser price and greater usefulness

anyone can easily attracted towards the product.

Looking to the product uses and its innovative features as well as

greater advantages. We can say that this product is really “Tappen” for

us. Thus, the product will be produced under the brand name of Tappen

with named “TAPPEN MOBILE STOVE”

13

Product Uses

Some of the most important uses of the product.

i.e. “Tappen Mobile Stove” is given below.

We can prepare 3 cups of Tea, Milk of Coffee in 5 minutes only.

We can prepare Dal-Chaval of Hauch Pouch.

i.e. Khichdi of two or three people only in few minutes.

Even we can eat hot food on Dinning Table with the help of

Tappen.

In winter, we can take hit with the help of this stove; even water

for shaving purpose can also be made hot at any time and any

place.

The most important thing that people believe that according to

Vastushastra. We can keep this stove in the fire corner.

The stove is very frequently useful for the Students of Hostels &

Boarding also.

14

Doctors can also boil the needle of the injections in the water with

the help of this stove.

The beauticians can use this in making wax hot in beautiparlour.

In buffe party and even in kitty party this can be used.

15

Production schedule

INCOMING RAW MATERIAL

INSPECTION

↓

CUTTING

↓

BENDING

↓

POWDER COTTING

↓

REVATING

↓

EMBOZING

↓

PRINTING

↓

PACKAGING

↓

DESPATCH

16

ACQUISITION OF MACHINERY

The machineries at an estimated cost Rs. 13,60,000 have been installed and

have been acquired function expected. Specification of process delivery terms and

payment facilities mainly the machines installed are made in India.

Press machines

Milling Machine

Cutting Machine

PMS-H [Code No.]

Ceasing Machine

18

Sr No. Particulars Page No.

1. Introduction 19

2. Recruitment and Selection and Introduction 20

3. Training and Management 21

4. Promotion and Transfer Policy 22

5. Wage and Salary 23

19

INTRODUCTION

Personnel Management is the part of the management function part of the

management function is primarily concerned with the human relationship with in

an Organization.

Personnel management is concerned with the managerial functions

(Planning, Organization, Directing, Controlling, co-ordination) and operative

function (production, development, compensation, integration, maintenance) with a

view to attaching, organization goals economically and effectively and meeting the

individual and social goals.

So, personnel management is a process of producing the required member

and person at the right time on right place for right job and utilizing their ability to

achieved goals.

We can say that personnel management is that part of management which

covers all the important aspects like manpower planning, selection process, method

of training and development performance appraisal, promotion, transfer salary and

industrial relation.

20

Recruitment selection and induction

Recruitment

Recruitment has been regarded as the most important function of

personnel administration. Tappen indu. Ltd. Recruit employees as per their

need. They follow the following resource of recruitment.

Internal source:-

Internal sources are the most obvious source. This includes

personnel who are already in the service of Organization.

External source:-

Recruitment tends to focus their attention outside organization.

Tappen indu. Ltd. Mostly uses both types of recruitment sources.

Methods of recruitment

There are mainly three methods of recruitment these are:

1. Direct Method

2. Indirect Method.

3. Third Party.

21

TRAINING AND MANAGEMENT

DEVELOPMENT

Training

After selecting the most suitable person in the Organization through

the application of scientific techniques the next important function of

personnel manager is to arrange their training and development program.

Training is a systematic program to increase the knowledge, skills,

abilities and aptitudes of workers to perform scientific jobs. There are

various methods of training.

A. On the job training method.

B. Classroom Method.

C. Apprentice training Method.

Development

Development of a management is also another important aspect.

Development is a related process.

Company organizes seminar for their employee with the help of

various management institutions.

22

Promotion & transfer policy

A promotion means an unwary advancement of an employee in and

Organization to another job. Promotion with in grade or horizontal promotion.

In Tappen indu. promotion is given on the seniority basis seniority refers to

the length of services in the organization. They giving promotions in varied ways

they are as follows:

By increasing salary of person.

By raising status of person.

By giving more extra benefits to the person.

Transfer policy

Transfer means lateral shift causing movement individuals from one position

to another usually without involving any marked changes in duties, responsibilities

skills needed or compensation.

In Tappen indu. no persons are transferred in case of conflict or some other

problems only they are transferred.

23

Wage and Salary

Wage and salary administration is so important thing for employees.

In Tappen indu. Ltd. for wage and salary administration the following

registers are kept.

Attendance register

Wage register

Salary register.

25

Marketing department

Sr. No. Particulars Page No.

1. Introduction 26

2. Market segmentation 27

3. Pricing Policy 28

4. Channel of distribution 29

5. Advertisement 30

26

Introduction

In modern competitive age marketing management plays an important

and vital role in the business for accomplishment of certain goal. The main

object of marketing department is to increase volume to maximize the profit

and growth of the business and hence help in expansion of the organization.

According to the definition, “marketing management is the process of

planning and executing the conception, pricing, promotion and distribution

of goods, ideas and services to create exchanges the satisfy individual and

organizational goals.”

So far as Tappen indu. is concerned it has separate marketing

department .

The company has direct contact with its consumers and also with their

distribution in India. The whole marketing activities handled by separate

department of the company.

27

MARKET SEGMENTATION

The modern market is customer oriented. All marketing activities resolve

around customer in order to achieve the marketing objectives. It is the customers.

The concept of the market segment is based on the fact that the market of

commodities is not homogeneous but they are heterogeneous market represents a

group of customers having common characteristics market segmentation consist of

taking the total homogeneous market for a product dividing it into several sub

market. Through market segmentation sellers try to identify those who are most

likely to buy their goods and services.

Market segmentation is done on various bases, which are as follows.

Geographic segmentation

Demographic segmentation

Psycho grahic segmentation

Behavioral segmentation

28

PRICING POLICY

Policies are guideline for achieving the objectives. Pricing decision play

every crucial role on the development of any industry because pricing decision is

the only factor in marketing mix of any firm, which produce revenue.

Pricing is a critical decision in marketing management. The main objective

of the firm i.e. to earn profit depends very much upon the correct pricing decision.

The top takes In Tappen indu. Ltd pricing decision level management there

is not a specific pricing policy but the price of each product is fixed with an eye on

the following factors.

Cost of production

Competitive price in the market

Normal Profit

Advertising Cost

Distribution Cost

When the price policy of a particulars product is controlled on fixed by the

Govt. possibilities of increasing the price of non-price controlled products and to

be sought. It should also be considered weather the producer should adopt one

price policy on price differentiation policy that is different price for different

person on purpose.

29

CHANNEL OF DISTRIBUTION

In today’s economy most producers do not sell their goods directly to the

final users. Most producers work with marketing intermediates to bring their

product to market. A distribution means to distribute, spread out or disseminated in

the field of marketing. Channel of distribution shall be considered to comprise a set

of institution, which performs all of the function utilized to move a product and its

title from production to consumption.

Tappen indu. Ltd. Has adopted zero level channels and one level channel.

Zero level channel consists of manufacturer selling directly to consumers. It is

called direct marketing channel. And a one level channel contains one selling host.

Is industrial markets there is often as sales agent. Tappen indu. Ltd is having 25

dealers in Gujarat and 6 dealers are out of Gujarat at present.

30

Advertisement

The best advertising is done by satisfied customers. Nothing except the mint

can make money without advertising mass production and mass distribution totally

depend on all firms of advertising and publicity. Modern advertising informs

guides, educates as well as protects buyers. So that they can buy intelligently and

raise their standard of living. The wheels of industry and commerce cannot move

with desirable special without the propelling power of advertisement.

The company has to select the best media from among the various media for

advertising. Also the size of the advertisement with lower or notable rate is to be

selected. If should be an eyes caching caption. The company keeping in made the

village people, because most of their customers are villagers.

After all they select as media like news paper, holdings, wall painting for

advertising. One percentage of profit is spent for advertising in a year.

The main aim of using news paper is that more public be made aware of

company’s product company advertise in newspaper like Gujarat Samachar and

Divya Bhaskar.

32

Finance Department

Sr.no. Particular Page no.

1. Financial details 33

2. Means of Capital &

It’s Allocation 41

3. Cost of Production 44

4. Break Even Point

Analysis 45

5. Final Accounts 47

33

Financial details of project & It’s arrangements

1. Fixed Capital Details:-

Land

Building

Machinery & Equipments

Preliminary & Pre-Operative Exp.

I. Land

10,000 Sq. Mtr * 500 Rs. Per Sq. Mtr. = 50,00,000

II. Building

9,000 Sq. Mtr * 500 Rs. Per Sq. Mtr. = 45,00,000

34

III. Machinery & Equipments

Sr.

No.

Particulars No. Price Total

Amt.

1 Cutting Machine 10 60,000 6,00,000

2 Milling Machine 5 25,000 1,25,000

3 Press Machine 10 30,000 3,00,000

4 PMS-H [Code No.] 5 42,000 2,10,000

5 Ceasing Machine 5 25,000 1,25000

TOTAL 13,60,000

Add.

Electrification &

Installation Charges at

10% of Cost of

Machine & Equipments

1,36,000

TOTAL 14,96,000

35

IV. Preliminary & Pre-Operative Exp.

Sr.

No.

Particulars Amount

(P.M)

Amount

(P.Y.)

1 Preliminary Exp. 75,000 9,00,000

2 Pre-Operative Exp.

(a) Legal Charges

(b) Establishment

(c) Miscellaneous exp.

60,000

50,000

50,000

7,20,000

6,00,000

6,00,000

TOTAL 2,35,000 28,20,000

Total Fixed Capital Statement

Sr. No. Particular Amount (Rs)

1 Land 50,00,000

2 Building 45,00,000

3 Machinery & Equipments 14,96,000

4 Preliminary & Pre- Op. Exp. 2,35,000

Total Fixed Capital 97,21,000

36

2. Working capital detail

Raw Material

Sr. No. Particular Quantity Rate Amount

(P.M.) Amount (P.Y.)

1 M.S.Sheet

6000 Kg 25 1,50,000 18,00,000

2 S S Sheet

7500 Kg 27 2,02,500 24,30,000

3 Purchased

Parts:

a. Steel Cups

b. Wax Tablets

15,000

10,000

7

0.70

1,05,000

7,000

12,60,000

84,000

TOTAL 4,64,500 55,74,000

37

Wages & Salary Distribution

Sr.

No. Particular Qty

Rate

P.M.

Total

P.M.

Total

P.Y.

1 General Manager 2 16,000 32,000 3,84,000

2 Sales Manager 5 10,000 50,000 6,00,000

3 Accountant 1 10,000 10,000 1,20,000

4 A/c Assistant 1 10,000 10,000 1,20,000

5 Clerk 2 8,750 17,500 2,10,000

6 Operator 4 8,750 35,000 4,20,000

7 Skilled Worker 20 2,500 50,000 6,00,000

8 Semiskilled

Worker

30 1,800 54,000 6,48,000

TOTAL 2,58,500 31,02,000

Add. Perquisite of 15% of

Pay

38,775 4,65,300

TOTAL 2,97,275 35,67,300

38

Utility

Sr. No. Particular Amount (P.M.) Amount (P.Y.)

1 Power 75,000 9,00,000

2 Water 10,000 1,20,000

TOTAL 85,000 10,20,000

Other Contingent Exp.

Sr. No. Particular Amount

P.M.

Amount

P.Y.

1 Postage & Telegram 40,000 4,80,000

2 Printing & Stationary 10,000 1,20,000

3 Repairs & Maintenance 25,000 3,00,000

4 Traveling Exp. 50,000 6,00,000

5 Transport Charges 50,000 6,00,000

6 Advertisement &

Publicity

40,000 4,80,000

7 Selling Exp. 60,000 7,20,000

8 Miscellaneous Exp. 15,000 1,80,000

9 Insurance 18,000 2,16,000

TOTAL 3,08,000 36,96,000

39

Total Working Capital


(P.M.)

Amount

(P.Y.)

1 Raw Material

4,64,500 55,74,000

2 Salary & Wages

Distribution

2,97,275 35,67,300

3 Utility

85,000 10,20,000

4 Other Contingent Exp.

3,08,000 36,96,000

TOTAL 11,54,775 1,38,57,300

40

Total Capital Investment


Rs.

A Fixed Capital

1,12,31,000

B Working Capital req. for 3

Months

(11,54,775 X 3)

34,64,325

TOTAL (A + B) 1,46,95,325

41

Means of Capital & It’s Allocation

Finance is key input of Production, distribution and development.

Therefore, it is defined as “LIFE BLOD” and “CONTROL POINT” of

any business economy. It requires raising of adequate funds at the

minimum cost & using them effectively in business. Source of finance,

therefore depends on size of firm, Nature of product, Production

Processor etc.

In Tappen Industries, I’m chairman (owner). I’m take 25% & 30%

Loan from IDBI & Other Bank respectively & 45% is my capital.

42

Capital Allocation

Sr.

No. Particular Amount

45% 25% 30%

Own

Capital

@12.%

I.D.B.I

@12.5 %

Bank Loan

@12%

1 Land

50,00,000 22,50,000 12,50,000 15,00,000

2 Building

45,00,000 20,25,000 11,25,000 13,50,000

3 Machinery &

Equipment

14,96,000 6,73,200 3,74,000 4,48,800

4 Pre & Pre-

Ope. Exp.

2,35,000 1,05,750 58,750 70,500

5 Working

Capital (req.

for 3 Months)

34,64,325 15,58,946 8,66,081 10,39,298

TOTAL 1,46,95,325 66,12,896 36,73,831 44,08,598

43

Interest provision

Sr. No. Particular Amount Interest

Rate Value of P.Y.

1 Own Capital

66,12,896 12% 7,93,548

2 IDBI Loan

36,73,831 12.5% 4,59,229

3 Bank Loan

44,08,598 12% 5,29,032

TOTAL 14,69,325 17,81,809

44

Cost of Production & Sales details

A. Details of Sale

Sr.

No.

Particular Qty Value

Per Unit

Amount

(P.M.)

Amount

(P.Y.)

1 Mobile Stove 14,000 155 21,70,000 2,60,40,000

B. Depreciation Scheme

Sr.

No.

Particular Value Depreciation

1 Building @ 12 % 45,00,000 5,40,000

2 Machinery &

Equipment @ 15 %

14,96,000 2,24,400

TOTAL 7,64,400

C. Cost of Production


1 Yearly req. of W.C. 1,38,57,300

2 Total Interest on Capital 17,81,809

3 Total Depreciation. 7,64,400

TOTAL 1,64,03,509

45

Break Even Point Analysis

The narrow interpretation of the term Break Even Analysis refers

to a system of determination of that level of actively where total cost

equals its total selling price & the broader interpretation refers to that

system of analysis, which determine the probable profit at any level of

activity.

Break Even Analysis is also known as CVPA i.e. Cost volume &

Profit Analysis. It is that level of sales which is necessary to cover all

fixed cost but also evaluate the profitability at various levels of sales

before Break Even Point & after Break Even Point.

BEP is the situation of “No Profit No Loss’. This is the ideal

situation for the firm. If the firm exceeds its sales beyond BEP, Profit

shall occur to business & if sales are below BEP, Loss shall be suffered

by the business.

46

BEP may be found using the following Formula:

Contribution = Sales – Variablr Cost

= 2,60,40,000 - 1,38,57,300

=1,21,82,700

BEP = Fixed Cost X 100

Cotribution

= 97,21,000 X 100

1,21,82,700

= 79.79%

47

Final Accounts

Projected trading account of tappen indudustry For

2012-13

Particular Rs. Particular Rs.

To raw

material

Gross profit

55,74,000

2,04,66,000

By sales 2,60,40,000

2,60,40,000 2,60,40,000

48

Projected P & L account of tappen indudustry For

2012-13 Prt. Rs. Par. Rs.

To advertising

exp.

Depreciation

Insurance

Int. on bank loan

Salary to

employees.

Repair &

maintainance

Miscellaneous

exp.

Postage & stamp

duty

Printing &

Stationary exp.

Utilities

Income tax

Net Profit

4,80,000

7,64,400

2,16,000

5,29,032

35,67,300

3,00,000

1,80,000

4,80,000

1,20,000

2,35,000

10,20,000

33,72,772

92,01,496

By,

Gross profit

2,04,66,000

2,04,66,000 2,04,66,000

49

Projected Balance sheet of tappen indudustry For

2012-13 Particular Rs. Particular Rs.

Capital amount

Capital 66,12,896

Profit 92,01,496

Bank loan

IDBI 36,73,831

+int. 4,59,229

Oth. Banks 44,08,598

+ int. 5,29,032

1,58,14,392

41,33,060

49,37,630

Fixed assets

Land

bulding

Machinaries

Preliminary & Pre-

Op. Exp

Bills receivable

Om traders

Shree entprise

Cash at bank

Cash at hand

50,00,000

45,00,000

14,96,000

2,35,000

45,00,000

30,00,000

30,00,000

31,54,082

2,48,85,082 2,48,85,082

50


2013-14


To raw

material

Gross profit

60,74,000

2,05,66,000

By sales 2,66,40,000

2,66,40,000 2,66,40,000

51



To advertising

exp.

Depreciation

Insurance

Int. on bank loan

Salary to

employees.

Repair &

maintainance

Miscellaneous

exp.

Postage & stamp

duty

Printing &

Stationary exp.

Utilities

Income tax

Net Profit

4,00,000

7,64,400

2,16,000

5,29,032

40,67,300

3,00,000

1,85,000

4,80,000

1,20,000

2,35,000

11,20,000

33,72,772

87,76,496

By,

Gross profit 2,05,66,000

2,05,66,000 2,05,66,000

52



Capital amount

Capital 66,12,896

Profit 87,76,496

Bank loan

IDBI 36,73,831

+int. 4,59,229


+ int. 5,29,032

1,53,89,392

41,33,060

49,37,630

Fixed assets

Land

bulding

Machinaries

Preliminary & Pre-

Op. Exp

Bills receivable

Om traders

Shree entprise

Cash at bank

Cash at hand

50,00,000

45,00,000

14,96,000

2,45,000

45,00,000

30,00,000

50,00,000

32,56,787

2,44,60,082 2,44,60,082

53


2014-15


To raw

material

Gross profit

70,74,000

1,99,66,000

By sales 2,70,40,000

2,70,40,000 2,70,40,000

54



To advertising

exp.

Depreciation

Insurance

Int. on bank loan

Salary to

employees.

Repair &

maintainance

Miscellaneous

exp.

Postage & stamp

duty

Printing &

Stationary exp.

Utilities

Income tax

Net Profit

5,00,000

7,64,400

3,16,000

5,29,032

45,67,300

3,10,000

1,85,000

4,80,000

1,50,000

2,40,000

11,20,000

33,72,772

1,15,42,066

By,

Gross profit 1,99,66,000

1,99,66,000 1,99,66,000

55



Capital amount

Capital 66,12,896

Profit 1,15,42,066

Bank loan

IDBI 36,73,831

+int. 4,59,229


+ int. 5,29,032

1,81,54,962

41,33,060

49,37,630

Fixed assets

Land

bulding

Machinaries

Preliminary & Pre-

Op. Exp

Bills receivable

Om traders

Shree entprise

Cash at bank

Cash at hand

50,00,000

45,00,000

14,96,000

2,45,000

45,00,000

30,00,000

50,00,000

32,56,787

2,72,25,652 2,72,25,652

56

List of supplier of machinery & raw materials

1. Suppliers of Machinery

(I) M/s Perfect Machine Tools Co.

Sir P.M. Road,

Bombay – 400 007

(II) M/s Jeet Machine Tools Corporation

Shardanand Marg,

Delhi – 110 006

2. Suppliers of Raw Materials

(I) M/s PD Tools Pvt. Ltd.

Noida Marg,

Delhi – 110 005

(II) M/s Star Tools Corporation

Gandhi Road,

Bangalore

57

Future plans

Generally, Management needs planning because it is the first step

of any organization. An organization starts with lots of future plans.

“Tappen Industries” also applies the same thing. The Tappen

Industries will starts with small scale unit. But with innovative

planning’s. The first & basic plan is that the firm will try to earn in

“Higher Profit with best lower cost of Production”. The second thing is

that to increase consumer demand & needs by providing them Maximum

satisfaction at the Minimum possible rate with good qualitative Product.

And last but not in list, If product get good response from ultimate

consumer them unit introduce some new and effective scheme and also

cover the media for Advertisement purpose.

58

Risk factors

When any industry starts, there are many advantages along with

risk factors.

Risk factor means the factors which hinders growth &

development of the companies. These factors cause challenge of threats

to the company or its product. Therefore, Cure should be taken of there

factors, some of the risk factors, which may be arise here, are as under.

In the very first year production might be less than expected due to

new organization.

Increasing competition may become challenge in the future. But if

we are proactive enough them we can face the challenge.

Changes in Govt. policy may affect profitability of the firm.

The fluctuations of pricing pattern of change in pricing of product.

The partners of the project are first generation entrepreneur with no

specific experience in the industry.

59

Conclusion

In the product project report on Tappen Indu., I have

discussed all financial data and other relevant information.

The market of Tappen Indu. is expanding its demand for

the product is increasing day by day. The return in this

business is also satisfactory.

At last it can be said that future of this product is very

bright.

With the expectation of high profitability and good

completing of high is assumed that it would be the perfect

product to be manufactured in today's environment.

60

BIBLIOGRAPHY

Reference Books

Desai Vasant, Project Management,

2nd

Edition, 1999, Himalaya Publishing House.

Sharma Ravi. K. & Gupta Shashi K, Finance Management,

4th Edition 2003-04, Kalyani Publishers

Kotler Philip, Marketing Management, Prentice hall of India, 11th

Edition 2004, Himalaya Publishing house.