Escolar Documentos
Profissional Documentos
Cultura Documentos
Date:
Place: Rajkot
____________________
(Limbashia Chirag)
(1)
ACKNOWLEDGEMENT
(2)
PREFACE
(3)
INDEX
2. Project at Glance 6
3. Partners Background 7
4. Organizational Structure 8
5. Location Justification 9
6. Product Details 10
7. Market Potential 11
8. Machines 12
9. Manufacturing Process 14
Production Capacity
10. 16
Schedule
11. Staff and Labour Details 16
Disclosure of Significant
16. 41
Accounting Policy
17. Conclusion 42
(4)
INTRODUCTION
The project work presented in this report refers to setting
up of a manufacturing unit engaged in ball bearing in future so it
is necessary to know some detailed information about them.
PROJECT AT GLANCE
(5)
Name of Unit M. G. Engineering
G-777, Metoda GIDC,
Registered Office Lodhika, Dist.- Rajkot
Gujarat – India.
G-777, Metoda GIDC,
Factory Location Lodhika, Dist.- Rajkot
Gujarat – India.
Form of Org. Sole Proprietorship
Name of Promoter Chirag Patel
Name of Product Ball Bearing
Name of Brand M. G.
Size of Unit Small Scale Industries
SSI Registration No. 10007
Cost of Product Rs. 675 for 120 mm diameter
Owner’s Capital 60% Rs 81 lacs
Means of Finance Borrowed Capital 40% Rs 54 lacs
from RNSBL
Cost of Capital 9.8%
Return on
15.69%
Investment
(6)
OWNER’S
BACKGROUND
(7)
ORGANIZATIONAL
STRUCTURE
Chairman
Manager
Unskilled Worker
(8)
LOCATION
JUSTIFICATION
(9)
PRODUCT DETAILS
(10)
MARKET POTENTIAL
The popularity of ball bearing is very much because ball
bearing is used at every place where there is revolving wheel so
the demand of ball bearing is very much. There are many
companies which are manufacturing ball bearing but they are very
costly and some times there is not proper quality.
(11)
MACHINES
• Grinding Machine:-
This machine is used for grinding the upper surface of
ball bearing ring as soon as it is forged.
• Lathe Machine:-
This machine is used for turning the bearing ring
which is not accurate in size when it comes from forging.
(12)
• Cylindrical Grinding Machine:-
This machine is used for making proper grinding the
inner surface of ball bearing ring so that it is polished and
rough grinding of internal grinding machine can be made
proper.
• Annealing Machine:-
This machine is used make annealing of bearing ring
which is forged. Through this machine the bearing ring
forged is uneven or not in proper round shape can be
made proper by this machine.
• There are also other machines which are used for checking
the accuracy and quality of ball bearing and this machines
are venire, micro meter, etc.
(13)
MANUFACTURING
PROCESS
• Forging
The first and foremost step for the production of
bearing is forging of the steel bar for the exact size of the
bearing ring. The company purchases this forging from out
sources. When forging is purchased form out sources all the
dimensions of metal are checked and then this forging is
sending for other process.
(14)
• Cage Component
First the dye of the cage is prepared and then the cage
is manufactured but in our company it is directly purchased
from out sources.
(15)
PRODUCTION
CAPACITY SCHEDULE
SKILLED WORKERS 3
FACTORY STAFF SEMI SKILLED WORKERS 5
UNSKILLED WORKERS 7
MANAGER 1
SUPERVISOR 2
ADMINISTRATIVE CLERK 1
STAFF ACCOUNTANT 1
SALESMAN 1
WATCHMAN 1
(16)
(17)
SOURCES OF FINANCE
SR PARTICULAR AMOUN
NO. T
OWNERSHIP CAPITAL (60%) @
1 81,00,000
9%
BORROWED CAPITAL (40%)
TOTAL CAPITAL
INVESTMENT
SR. PARTICULAR AMOUN
NO T
(18)
1 FIXED COST 51,63,000
2 WORKING CAPITAL ( 1 MONTH) 76,58,475
3 CASH IN HAND 6,78,525
1,35,00,0
TOTAL
00
(19)
FIXED ASSETS
Land
PARTICULAR SQ.MT RATE(RS. TOTAL
S S. ) COST
16,10,00
Land 2300 700
0
Building
PARTICULAR SQ.FEE RATE(RS. TOTAL
S T ) COST
22,53,00
Building 7510 300
0
QTY TOTAL
NAME RATE
. COST
Grinding machine 1 1,50,00 1,50,000
machine -- 0 10,000
(20)
Press machine for 65,000
assembling bearing
(21)
Other Assets
4 Telephone 2 10,000
NO AMOUN
PARTICULAR
. T
1. Land (2300sq meters @700) 16,10000
2. Building (7510 sq feet @ 300} 22,53,000
3. Boundary Wall & Gate 50,000
4. Plant & Machinery 10,00,000
5. Furniture & Fixtures 1,00,000
6. Electrification & Installation Charges 50,000
Computer, Telephones, production
7. 1,00,000
dyes and trolley
51,63,00
Total
0
(22)
COST OF PRODUCTION
Raw Materials
units units
CAGE 5/- 60,000 7,20,000
1200 14400
0 0
BALLS 3/- 1440 4,32,00 17280 51,84,00
00 0 00 0
BOX FOR 1200 14400
1/- 12,000 1,44,000
PACKING 0 0
75,04, 9,00,48,
TOTAL 000 000
Utilities
PARTICULAR PER YEAR
WATER
50,000
FUEL
1,00,000
ELECTRICITY
3,50,000
TOTAL 5,00,000
(23)
Staff & Labour
NO. OF PER
PER
PATICULARS PERSO SALARY MONT
YEAR
N H
MANAGER 1 5000 5000 60,000
SUPERVISOR 2 3000 6000 72,000
SKILLED WORKER 1,26,00
3 3500 10,500
0
SEMI SKILLED 1,80,00
5 3000 15,000
WORKER 0
UNSKILLED 2,10,00
7 2500 17,500
WORKER 0
WATCH MAN 1 2000 2000 24,000
ACCOUNTANT 1 5000 5000 60,000
SALES MAN 1 5000 5000 60,000
CLERK 1 2000 2000 24,000
8,16,0
68,000
TOTAL 00
(24)
Other Expenses
SR.N AMOUN
PARTICULAR
O T
1 REPAIR AND MAINTENANCE 75,000
2 POSTAGE AND TELEGRAM 25,000
3 TELEPHONE EXPENSES 35,000
4 TRANSPORTATION 50,000
5 MISCELLENEOUS EXPENSES 25,000
6 ADVERTISEMENT 80,000
7 INSURANCE 90,000
8 MEDICAL EXPENSES 50,000
9 PROFESSIONAL TAX 1000
10 LEGAL EXPENSES 20,000
11 AUDIT FEES 36,700
12 TRAVELLING EXP 50,000
TOTAL 5,37,700
(25)
Depreciation
RATE
SR.
PARTICULAR VALUE OF DEP.
NO.
DEP.
1 22,53,0
BUILDING 10% 2,25,300
00
2 10,00,0
MACHINARY 20% 2,00,000
00
3 OTHER FIXED 2,60,00
15% 39,000
ASSET 0
4 COMPUTER 40,000 40% 16,000
34,53,0
TOTAL 4,80,300
00
(26)
TOTAL WORKING CAPITAL
REQUIREMENT
SR. AMOUN
PARTICULARS
NO T
1 RAW MATERIALS 9,00,48,00
0
2 STAFF AND LABOUR
8,16,000
3 UTILITIES
5,00,000
4 OTHER EXPENSES
5,37,700
9,19,01,7
TOTAL
00
INTEREST ON CAPITAL
INT.
SR. LOAN INT.
DETAILS AMOUN
NO. AMT. RATE
T
OWNER’ CAPITAL
1 JAY R. PARSANA 81,00,000 9% 7,29,000
(60%)
BORROWED CAPITAL
2 NAGRIK SHAKARI 54,00,000 11% 5,94,000
BANK LTD (40%)
TOTAL 1,35,00, 13,23,00
000 0
(27)
ANNUAL COST OF
PRODUCTION
SR. AMOUN
PARTICULAR
NO T
1 RAW MATERIAL 9,00,48,00
0
2 UTILITY 5,00,000
3 SALARIES 8,16,000
4 OTHER EXPENSES 5,37,700
5 INTEREST ON CAPITAL 13,23,000
6 DEPRECIATION 4,80,300
SALES FORECAST
YEA SALES
UNITS/ANNUM RATE /UNIT
R (RS)
1 1,40,000 675 9,45,00,000
2 1,60,000 675 10,80,00,000
3 1,80,000 675 12,15,00,000
4 1,90,000 680 12,92,00,000
5 2,00,000 680 13,60,00,000
(28)
TOTAL FIXED COST
SR.
PARTICULARS AMOUNT
NO.
1 RAW MATERIAL 9,00,48000
(29)
9,11,82,3
TOTAL
90
(30)
BREAK EVEN ANALYSIS
(31)
RATIO ANALYSIS
(32)
LOAN REPAYMENT
SCHEDULE
[[
YEA O/P BAL. INSTALLMEN CL. INTERS
R T BAL. T
1 54,00,000 5,40,000 48,60,000 5,94,000
2 48,60,000 5,40,000 43,20,000 5,34,600
3 43,20,000 5,40,000 37,80,000 4,75,200
4 37,80,000 5,40,000 32,40,000 4,15,800
5 32,40,000 5,40,000 27,00,000 3,56,400
6 27,00,000 5,40,000 21,60,000 2,97,000
7 21,60,000 5,40,000 16,20,000 2,37,600
8 16,20,000 5,40,000 10,80,000 1,78,200
9 10,80,000 5,40,000 5,40,000 1,18,800
10 5,40,000 5,40,000 ----- 59,400
(33)
= 9.8%
(34)
PROFITABILITY ANALYSIS
PARTICULAR AMOUNT
SALES 9,45,00,000
LESS:- COST OF
9,23,82,000
PRODUCTION
EBIT 21,18,000
LESS:- INTEREST 13,23,000
EBT 7,95,000
LESS:- TAX 1,88,500
EAT 6,06,500
TAX SLAB
(35)
PROJECTED OPERATING
STATEMENT
PARTICULAR YEAR 1
SALES 9,45,00,000
COST OF
OPERATION
RAW MATERIAL 9,00,48,000
UTILITIES 5,00,000
LABOUR 5,16,000
ADD:- OP. STOCK OF
RAW MATERIAL -----
LESS:- CL. STOCK OF
RAW MATERIAL -----
ADD:- OP. STOCK OF
FINISHED GOODS -----
LESS:- CL. STOCK OF
FINISHED GOODS 27,00,000
TOTAL COST 8,83,64,000
GROSS PROFIT
(Sales – Cost of 61,36,000
Operation)
INDIRECT
EXPENSES
FACTORY EXPENSES 6,56,300
ADMINISTRATIVE 4,21,700
EXPENSES
SELLING AND 2,40,000
DISTRIBUTION EXP
Total Indirect 13,18,000
Expenses
EBIT:
(Gross Profit – Indirect 48,18,000
exp)
LESS:-Interest on
Borrowed Capital 5,94,000
EBT: 42,24,000
LESS:-TAX 12,17,200
EAT: (36) 30,06,800
PROJECTED COST SHEET
PARTICULAR YEAR 1
Raw Material
Consumed
Purchase 9,00,48,0
00
Less:- Cl. Stock ---
Add:-
Direct wages 5,16,000
Utilities 5,00,000
PRIME COST (A) 9,10,64,
000
Factory Cost
Add:-
Repairs 75,000
Manager’s Salary 60,000
Supervisor’s Salary 72,000
Watchman’s Wage 24,000
Depreciation on Machines 2,00,000
Depreciation on Building 2,25,300
TOTAL FACTORY COST (B) 6,56,300
Administrative
Expenses
Add:-
Accountant’s Salary 60,000
Clerk’s Salary 24,000
Postage and Telegram Exp. 25,000
Telephone Exp. 35,000
Mis. Expenses 25,000
Insurance Exp. 90,000
Medical Exp. 50,000
Professional Tax 1,000
Legal Exp. 20,000
Audit Fees 36,700
Depreciation on Computer
COST OF PRODUCTION 16,000
9,28,71,
Depreciation
(A+B+C) on Other FA 39,000
000
Interest
Add: on Owned Capital ,29,000
TOTAL
Op. stockADMINISTRATIVE
of Finished Goods 11,50,70
-----
EXPENSES
Less: (C) 0
Cl. Stock of Finished Goods 27,00,000
COST OF PRODUCTION 9,01,71,
OF GOODS SOLD 000
(37)
PROJECTED FINAL
ACCOUNT
TRADING ACCOUNT
DR. CR.
PARTICULARS AMT. PARTICULARS AMT.
To Opening stock ----- By Sales 9,45,00,00
To Purchase 9,00,48,00 By Closing Stock 0
To Direct Wages 0 27,00,000
To Utilities 5,16,000
5,00,000
To Gross Profit 61,36,000
TOTAL 9,72,00, TOTAL 9,72,00,
000 000
(38)
PROFIT & LOSS ACCOUNT
DR. CR.
PARTICULARS AMT. PARTICULARS AMT.
To Repairs exp. 75,000 By Gross Profit 61,36,00
To Postage and Tele. 25,000 0
Exp. 35,000
To Telephone exp. 50,000
To Transportation 25,000
To Mis. Expenditure 80,000
To Advertising exp. 90,000
To Insurance 50,000
To Medical exp. 1,000
To Professional Tax 20,000
To Legal Exp. 36,700
To Audit Fees 50,000
To Traveling exp. 3,00,000
To Salaries to 4,80,300
employees 5,94,000
To Depreciation
To Int. on Borrowed
Capital 12,17,20
0
To Income Tax
(39)
BALANCE SHEET
(40)
RAW MATERIAL
CONSUMED
YEAR 1
Qty. Amt.
Op. stock
----- -----
Add: 17,80,0 9,00,48,0
Purchase 00 00
Less: Cl
stock ----- -----
PARTICULARS OF
FINISHED GOODS
Particulars YEAR 1
Qty. Amt.
----- -----
Op . balance
1,44,0 9,72,00,0
Add:- Good 00 00
Manu.
1,40,0 9,45,00,0
Less:-Sales 00 00
27,00,00
Cl. Stock 4,000
0
(41)
SCHEDULE FOR W. D.V.
OF FIXED ASSETS
Electric
installation 1,00,00 1,00,00 ----- 7,500 86,000
charges 0 0
----- 1,500
Telephone 42,500
50,000 50,000 ----- 16,000
Computer 8,500
10,000 10,000
Boundary, wall ----- 7,500 24,000
& gates 40,000 40,000
----- 6,000
Production 42,500
Dyes 50,000 50,000
----- 1,500 34,000
Trolley and 40,000 40,000
other
equipments 8,500
10,000 10,000
(42)
RISK FACTORS
(43)
RAW MATERIAL
SUPPLIER
• TISCO LTD.
210, C.G. Road,
Jamshedpur.
(44)
MACHINARY
SUPPLIER
(45)
DISCLOSURE OF
SIGNIFICANT
ACCOUNTING POLICIES
(46)
CONCLUSION
(47)