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Quality Is Our Assurance and The World Is Our Market. DIGITAL: World Class Products With A World of Economy
Quality Is Our Assurance and The World Is Our Market. DIGITAL: World Class Products With A World of Economy
Introduction
Quality Is Our Assurance And The World Is Our Market. DIGITAL: World Class Products with a World of Economy
DIGITAL based on the firm foundation of international quality offering the widest range of products. DIGIATAL has the most sophisticated manufacturing facility stretching over a mammoth spreading over 1000 sq. ft. of build up area. Each & Every product carefully crafted on the latest machine by a committed work force of over 250people. Thus, the following the motto of DIGITAL LTD. A customer is the most important visitor in our premises. He is not dependent on us we are dependent on him. He is not an interruption in our work; he is the purpose of it.
He is not an outsider in our business; he is a part of it. We are not doing a favor by serving him; he is doing us a favor by giving us an opportunity to do so.
Product Project Report on Electronic Calculators
Project at Glance
Name Of the Unit:~ Address Industrial Estate, Road, Rajkot 2 State: Gujarat Product :~ Electronic Calculators. S.S.I. :~ Rs. 1 crore Category of Industry :~ S.S.I. Registration No. Cost of the project (Estimated) No. of Shifts :~ 2 Shifts. 300 days. No. Of Working days :~
2
:~
Bhavnagar
:~
:~
35%
Repayment Schedule :~
Bio-Data of Partners
PROMATERS BACKGROUND
Name Address :~ :~ Ankur m. kholiya
Age Qualifications
Management)
:~ :~
22 years B.B.A.
(Advance Marketing
:~
50%
Fresh.
Partners Background
Name Address :~ :~ Nirav R. Chotalia
Age Qualifications
Mgt.)
:~ :~
:~
Implementation Schedule
The major activities in the
implementation of the project have been listed and the average time for implementation is estimated at 12 month.
SR. NO.
1. 2. 3. 4.
PARTICULARS
Preparation of Report Registration and other formalities Sanction of loan by financial institutions Plant and Machinery Placement of orders Procurement Power Connection Installation of Machine Procurement of Raw Materials Recruitment of technical personnel
MONTH
1 month 2 month 2 month 1 1 1 1 month month month month 1 month 1 month
5. 6.
Justification of Location
Selection of appropriate
location is a key area of concern for an entrepreneur. Location of the plant is a specific site or region where business is to commence. The main objective of any business concern is to maximize profit through maximization of production & distribution cost. These objectives and be achieved through judicious selection of location. M.C.Shukla remarks that:The location of a plant should be fixed in such a manner that people interested in its success can sell goods most profitably & manufacture them with least expense. DIGITAL Calculators Ltd. Is be situated in Aji Industrial Estate. There are many reasons for selecting this peace for the establishment. It is obvious that locational element has a great bearing upon the survival
& the prosperity of the unit. Aji Industrial Estate is a wide area covered with many industries products. producing a wide variety of
Infrastructure Facilities
Infrastructure facilities provided by G.I.D.C.
The industrial sheds of G.I.D.C. are fully equipped with facilities like electricity, telephone, water, transportation, etc Skilled & semi-skilled workers are available from Rajkot & surrounding areas. From marketing viewpoint, a good demand exists for own product. In such technological era, a wide range of electronic calculators is available at various rates. Rajkot, being a big city, all the means of transportation is available. Rajkot is developing commercially. Small & Medium scale industries are coming up in Shapar, Varaval, Morbi & Bamanbor. Hence for these industries also, demand for calculators still exists.
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USES:
Electronic extensively various works. used in calculators banks, are shops, office,
departmental stores, students, housewives & other This establishments. uses an Scientific integrated calculators are used by students & research calculator circuit. Generally these calculators could by placed in the following categories: 1) 2) 3) Pocket type Desk top type Desk top type with printer The above categories could be further subdivided based on number of digits, type of display (Black, Fluorescent, etc.) memory function, type of printer (i.e. light / heavy duty), power i.e. (Single / Dual / triple power operated etc.) As such a large variety of calculators would be available in the market with price ranging from Rs. 100 to Rs. 10,000. Above all these calculators will offer better aesthetics, lesser weight, large
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variety in sizes & design. It wills also trendy patterns, strong posture & long lasting.
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Particulars
Land Building
Sq. Mt.
1000 500
Amt. psm
150 500
Total
150000 250000
Total
4,00,00 0
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Description
Bench Drilling Machine Portable Grinder Testing Equipments A) Oscilloscope (20MHZ) B) DC Power Supply
Qty .
3 2 2 8 3 3 10
Cost (Rs.)
20,000 10,000 1,20,000 1,00,000 9,000 18,000 30,000 40,000 1,00,000 4,85,000 9,32,000
4)
5) 6) 7)
PCB Assign. Aids + Electrification Charges Cost of dies, moulds, jigs & fixtures Office equipments & fixtures TOTAL COST
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regarding raw material required per month. SR . Description NO . 1) Plastic Cabinet & Parts there of 2) Key Tops 3) Rubber key pad / pressure pad Integrated 4) Circuit 5) Chip Capacitors 6) Chip Resistor 7) LCD Display 8) Polarized 9) Printed Circuit Board (PCB) 10) Connector 11) Pencil Battery Button Cell & 12) Solar Cell 13) Diodes 14) Rubber Foot 15) On & Off Switch Self Adhesive 16) tape 8 digit packet cal. qty 3 sets 2 sets 3 1 3 2 1 1 4 2 1 1 2 1 2 2 p.u 8 digit desk top cal. Qty. 3 sets 2 sets 3 1 3 2 1 1 4 1 2 4 4 1 2 2 p.u
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Many
Many
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Raw material & components per set for Desktop calculator Rs. 145p.u. Raw material & components per set for pocket calculator Rs. 250p.u. Cost of 1500 pocket calculator Rs. 2, 17,500 Cost of 1500 Desk top calculator Rs. 3,75,000 Total cost of Raw Material / Component per month Rs. 5,92,500.
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Personnel
SR. NO .
Description
Total (Rs)
21,000 7,000 33,000 60,000 22,500 6,000 3,600 2,000 30,000 15,000 6,500 15,000 17,500 2,39,1 00
1) Managers 2) Supervisors Administrative 3) Officers 4) Skilled Workers Semi Skilled 5) Workers 6) Peon 7) Watchman 8) Sweepers 9) Technicians 10)Experts 11)Legal Advisor 12)Clerks Computer 13) Operators TOTAL
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Manufacturing Process
The main raw material required in manufacturing cabinet, circuit, electronic key tops, chips, calculators pressure LCD display are pad, & plastic
integrated
connector. The manufacturing process involves following stages. Inspection of raw materials / components. Assembling board (PCB) All precautions which are taken in respect of CMOS, in the same manner integrated circuits should also be taken care of while mounting / shouldering integrated circuit on PCB. Washing of printed circuit board with PCB cleaning chemicals to remove flux contaminants / residues. components like integrated circuit, diodes, chips, etc. on printed circuit
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Mounting of PCBs in the cabinet along with the LCD display, pressure pad, Connectors & other hardware items like battery clips / spring, etc. Checking & sorting of final product & then dispatch.
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business environment organization make all possible efforts to produce the products, which satisfy their customers to the maximum extent. Quality cannot reliability.
Quality is a consumer is the golden code the existence of the product. In a product like calculator, from raw material to finish goods inspection & quality control is required. Usually per it follows quality specifications as BIS
standard IS1980. Simple devices & methods will be used to check the raw material proportion & quality & every stage.
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Production Capacity
The expected capacity
utilization on double basis for 300days during first year & second year of operation is 60% & 80% respectively. The unit is expected to achieve, full capacity utilization from the 3 rd year onwards.
Particulars
Pocket Calculators Desk-top Calculators Total Rs. (p.a.)
I (60%)
10,800 10,800 42,66,0 00
II (80%)
14,400 14,400 56,88,0 00
III (100%)
18,000 18,000 71,10,0 00
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capacity has been taken on single double on 75% of efficiency. 2. The expected capacity utilization on
double shift basis for 300 days a year during first year and 2nd year of operation is 60% and 80% respectively. The unit is expected to achieve full capacity utilization from the 3rd year onward. 3. The salaries and wages, cost of raw
materials, utilities, cost of land rents etc. are based on the prevailing rates. These cost factors are likely to vary with time and with location. 4. Interest on term loan and working
capital loan has been taken at the rate of 20% on an average. This rate may vary depending
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upon the policy of the financial institutions / agencies from time to time.
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5.
refer to a particular make / model and the prices are approximate prices. 6. The breakeven point percentage
Whenever required could be considered under pre-operative expenses. 8. The essential production machinery
and test equipment required for the project have been indicated. The unit may also utilize common test facilities available at Electronics Test set & up Development by the Centers (ETDCs) and to BIS Electronic Regional Test Laboratories (ERTLs) State Governments to manufacture Standards. products conforming
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Market Potential
Industrial backbone of nations progress economy. is the Industrial
Evolution is a natural process over a no. Of years. The rapid industrial development of ever-flouring sectors of the economy.
potential customers sharing a particular need or want who might be willing & able to engage in exchange to satisfy that need or want. Electronics Industry has
experienced tremendous growth over last 2 decades in light of growing business, increased sophistication in the lifestyles & expansion of industrial undertakings. The light of market potential for
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Increase demand & popularity. Great upsurge in business, & day-to-day activities. Required by businessmen, Researchers, charges & Students, Builders, improved Housewives, Socio
Accountants, etc. economic standards of living. Trend of funky unique, compact, product & with many uses. New small-scale units coming up Chunk of sales of calculators come from big town, metros & mini metros. The consumer electronics
sector continues to show a sustained growth, which is expected to continue. Production of consumer electronics has Rs. 33,000 million in nineties eighties. compared The to Rs.12,750 of million in contribution consumer
electronics in the total electronics production is around 38%. There are more than 50 small-
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scale units manufacturing pocket / desktop calculators in India. Since the item is of great utility as consumer electronic / Office product its demand is likely to grow in the coming years.
Product Project Report on Electronic Calculators
Financial Details
Contents
FIXED CAPITAL DETAILS WORKING CAPITAL DETAILS TOTAL PROJECT COST SOURCES OF FINANCE UTILITIES SUPPLIERS OTHER EXPENSES
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Details 1) Machinery a.Bench Brilling Machine b.Portable Grinder c. Testing Equipments d.MultiMates e.PCB Assy. Aids f. Instillation charges TAL 2) Cost of dies / moulds / jigs / fixtures / tools 3) Office Equipments & Furniture & Electrification
00
qualities 2) Raw Material & Components (p/m) i. ii. 1500 pocket Calculators 1500 Desk top Calculators
3) Utilities i. Power ii. Water 4) Other Contingent Expenses (p/m) i. ii. iii. iv. v. GEB Deposit Postage & Stationery Repair & Maintenance Transport Charges Advertisement & Publicity
8,000
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vi. vii.
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Details 1) Fixed Capital I. Machinery II. Dies, Moulds, Jigs, Fixtures & Tools III. Office equipments & Furniture IV. Land & Building
Rs.
34
Sources of Finance
Amount (in Rs.) 4,50,000 35,46,000 24,99,000 64,95,000
Borrowed
capital
includes
financial help taken from Bank of India of Rs. 2,50,000 & Rs. 2,00,000 from ICICI bank at the 12% rate of interest.
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Utilities
Details Power (per month) Water TOTAL Amount (in Rs.) 5,000 3,000 8,000
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Testing Equipments:
1. Applied Elaectonics Ltd., A-5 Wagle Industrial Estate, Thana 4. 2. Pieco Electronics & Electrical Ltd., Shivasagar Estate, Block A Dr. Annie Besant Road, Bombay 12. 3. BPL (India) Ltd., 84, M.G.Road, Banglore 1. 4. Agronie Instruments (P) Ltd., 201, Shiva-Shakti Industrial Estate,
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5. Systronics, 89-92, Industrial Area, Naroda 382330. 6. Electronics Trade & Technology Dev. Corp. Ltd., 15/48, Malcha Marg, New Delhi 21. 7. Noble Electronics, Lajpat Raj Market, Delhi 6.
1. Sysco Associates, 30/106 (New No. 234), 11th Main, Malleswaram, Banglore 3. 2. Navanidhi Electronics (P) Ltd. 1-60/1 Snehapuri, Nacharam, Hyderabad 7. 3. Inde Associates, 16Rest House Crescent, Off Churt Stret, Banglore 1. 4. Bergan Associates P. Ltd. 1082, Sector 27-B, Chandigarh 19. 5. Circuit Aids Inc. No. 5, Ranganathapura, Magadi Road,
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Banglore 79.
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1. Electronics Trade & Technology Dev. Corp. Ltd. New Delhi 21. 2. OEN Connetors Ltd. Vyattila, PB No. 2, Cochin 19. 3. Micropack Ltd. Polt 16, Jigani Ind. Area, Anekal Tq. Banaglore Dist. 562 106. 4. Amar Radio Corpn. 11/1 Thiglar Periyanna Lane, GJP Road, Banglore 2. 5. Tomson Electronics, Pulickkal Buildings, Pullimukku, M.G.Road, Cochin 68216. 6. Saini Electronics, Pushpadant Nivas, 3, Chuman Lane, Dr. D. Bhadkmkar Marg, Bombay 7. 7. Banglore Electronics, No. 113, Sadarpatrappa Road, Banglore 2.
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Imported Components :
1. Interco Ltd. 456, Alexandra Road, 14.00 NOL Bldg. Singapore 0511.
2. Rosemount Ind, PO Box 35129, Minneapolis, MN 55435 (612) 941-5560 USA (For Scissors). 3. Gneral Electronics, 19, 5th Floor, Tardeo Air Conditioned Market, Bombay 34. 4. Bakumbhai Ambala (Electronics Dept.) Kaiser I, Hind Building, Ballard Estate, Bombay 38. 5. Shilpa International, 107 Parklane, Secunderabad 3. 6. Namtech Systems (P) Ltd., 35, Dacosta Square, St. Thomas Town, Banglore 84. 7. Jairamdas & Sons P.Ltd. Mittal Towers, M.G.Road, Banglore.
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Other Expenses
Contingency:
A provision of Rs. 4.50 Lacks has been made fir contingency expenses. Such expenses include rent, postage, stationary & so no. The unit may require paying an approximate amount of Rs. 2 lacks to GEB for power connection as deposit.
Details (P/M)
Rent Postage & Stationary Repair / Maintenance Conveyance Advertisement &Publicity Miscellaneous Expenses Interest, Telex, etc. GEB Deposit Insurance
TOTAL
6,72,000
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Details of Sales
The annual turnover on per annum is classified under following heads.
Details Pocket Calculators 1500X 12 X 145 Desk top Calculators 1500 X 12 X250 TOTAL
45,00,000 71,10,000
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I 60%
III 100%
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Cost of Production
Amount (in Rs.) 17,20,000 35,000
Details Working Capital Depreciation on Plant & Machinery @ 10% p.a. Depreciation on Tools, Fixtures, Moulds & Jigs @ 20% p.a. Depreciation on Office Equipment Furniture @ 20% p.a. Depreciation on Land & Building @ 10% p.a. Interest on total Capital investment @ 20% p.a. TOTAL
20,000
97,000
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Profitability Analysis
Net Profit before Income & Tax
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Ratio Analysis
1) Net Profit Ratio = Net Profit Before Income & Tax X 100 Sales = 38,99,000 71,10,000 = 54.84% Thus the Net Profit Ratio is 54.84% 2) Rate of Return Rate of Return = 100 Net Profit X X 100
Rate of Return
= 38,99,000 64,95,000
X 100
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profit shall accrue & if it is decreased, loss shall be suffered. Following is the breakeven analysis of this project. Fixed Cost Depreciation 1,92,000 Amount (in Rs.)
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Interest on total investment 11,38,600 40% Salary & Wages 95,640 40% other expenses 2,60,000
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Fixed cost + Net profit = 100 13,35,000 13,35,000 + 38,99,000 = 13,35,000 52,34,000 = 25.51% Thus, the Break Even Point is 25.51% X 100 X
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Risk Factors
It is truly said, The world is a Book. Every step, we take, open up a new page for us. Competitions & innovations are increasing day by day. 1.The industry may face tough competition from existing units & new units coming up at Shapar, Morbi & Wankaner. Electronic calculators being electronic & decorative product design & quality are of prime concern. 2.The industry will bear the loan liability of Rs. 4,50,000 from Bank of India & ICICI. 3.Changes in government policy & restrictions on raw material acquisition may considerably affect profitably of the industry. 4.In the initial years, industry will demand substantial efforts, time & money in
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exploiting
markets.
However
it
has
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Conclusion
Plan purposefully, Prepare positively, Precede powerfully, Pursue persistently.
Success lies in the constancy of purpose. From the very beginning it has followed the above punch lines. It is evident from the information & data provided that Calculators is all over growing unit with bright future prospects. No doubt it is a small-scale unit, but from the viewpoint of production. Marketing, profits, services, etc. This unit will prove to be a successful unit. It is truly said that, Knowledge & motivation coupled with sustained efforts is the recipe of success. In any field, success demands lots if efforts. Knowledge, guidance the most important thing motivation. Electronic Calculators being a consumer product seeing the growth of its market it has a definite bright future. In short, innovative decision making, goal setting, drive & dynamism sum up the achievement of DIGITAL Calculators Ltd.
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Where
all
seven
of
management
viz.
System, Strategy, Structure, Service, Staff, Skill & Style are blended into a new stature.
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