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Product Project Report on Electronic Calculators

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 :~
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DIGITAL. LTD DIGITAL. LTD G.I.D.C., 65 Aji

:~

Bhavnagar

:~

Expected Growth Rate Average Growth rate :~ . Loan Assistance :~

:~

35%

Rs. 198 p.u.

Indian Overseas Bank Bank of India Installments.

Repayment Schedule :~

Product Project Report on Electronic Calculators

Bio-Data of Partners
PROMATERS BACKGROUND
Name Address :~ :~ Ankur m. kholiya

HARI DARSHAN Opp.H.J.Doshi hospital, Noble Street, Rajkot 4

Age Qualifications
Management)

:~ :~

22 years B.B.A.
(Advance Marketing

Role in the Unit Department

:~

To manage Marketing & Administrative

Financial Contribution:~ Experience :~

50%

Fresh.

Product Project Report on Electronic Calculators

Partners Background
Name Address :~ :~ Nirav R. Chotalia

VATSALYA Indraprasth Nagar, B/H Virani High School, Rajkot 2

Age Qualifications
Mgt.)

:~ :~

27 years ME with Electronics


(Diploma in Business

Role in the Unit &

:~

To manage production Accounting Department

Financial Contribution:~ 50% Experience in Electronics industry. :~ 3 years experience

Product Project Report on Electronic Calculators

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.

Product Project Report on Electronic Calculators

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

Product Project Report on Electronic Calculators

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.

Product Project Report on Electronic Calculators

Product Features and Its Uses


Product is a key element in the market target offering. customers Marketing needs or mix planning The begins with formulating an offering to meet wants. customer will judge the offering by three basic elements. The product features & quality, the services mix &quality and the offerings price appropriateness. Thus all the three elements must be meshed into a competitively attractive offering.

Electronic Calculators in various sizes & models.

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Product Project Report on Electronic Calculators

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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Product Project Report on Electronic Calculators

Details of Land and Building


The land & building will be in G.I.D.C., Aji Industrial Estate 65, over 500sq. mts.

Particulars
Land Building

Sq. Mt.
1000 500

Amt. psm
150 500

Total
150000 250000

Total

4,00,00 0

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Product Project Report on Electronic Calculators

Details of Plant and Machinery


SR. NO.
1) 2) 3)

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)

Multimeters A) Analog B) Digital

5) 6) 7)

PCB Assign. Aids + Electrification Charges Cost of dies, moulds, jigs & fixtures Office equipments & fixtures TOTAL COST

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Product Project Report on Electronic Calculators

Details of Raw Material


The following information is

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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17) Packing box etc.

Many

Many

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Product Project Report on Electronic Calculators

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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Product Project Report on Electronic Calculators

Personnel

SR. NO .

Description

Nos Salary . (Rs)


3 2 6 20 15 3 2 2 6 2 1 5 5 7,000 3,500 5,500 3,000 1,500 2,000 1,800 1,000 5,000 7,500 6,500 3,000 3,500

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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Product Project Report on Electronic Calculators

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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Product Project Report on Electronic Calculators

Inspection and Quality Control


To survive in a competitive

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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Product Project Report on Electronic Calculators

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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Product Project Report on Electronic Calculators

Basis and Presumptions


1. The basis of calculation of production

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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Product Project Report on Electronic Calculators

5.

The cost of machinery and equipments

refer to a particular make / model and the prices are approximate prices. 6. The breakeven point percentage

indicated is of full capacity utilization. 7. The project preparation cost etc.

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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Product Project Report on Electronic Calculators

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.

MARKET: A Market consists of all the

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

electronic calculators should be evaluated in

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Product Project Report on Electronic Calculators

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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Product Project Report on Electronic Calculators

Fixed Capital Details

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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

Price 20,000 10,000 2,20,00 0 30,000 30,000 40,000

TO 3,50,00 0 1,00,00 0 4,85,00 0 T 9,35,00 0 4,00,00

OTAL 4) Land & Building

0 TOTAL FIXED 13,35,0 CAPITAL


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00

Product Project Report on Electronic Calculators

Working Capital Details


(Calculated on the basis of per month)
Details 1) Personnel i. Administrative & Supervisory ii. Workers +15 % per Rs. 3,00,0 00 1,67,5 00 2,000 4,69,50 0 Rs.

qualities 2) Raw Material & Components (p/m) i. ii. 1500 pocket Calculators 1500 Desk top Calculators

2,17,5 00 3,75,0 5,92,50 00 0 5,000 3,000

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

3,40,0 00 4,000 12,000 4,000 2,75,0 00

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vi. vii.

Insurance Miscellaneous expenses

10,000 5,000 6,50,00 0 17,20,0 00 51,60,0 00

5) Total Recurring Expenditure WORKING CAPITAL (3years)

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Product Project Report on Electronic Calculators

Total Capital Investment

Details 1) Fixed Capital I. Machinery II. Dies, Moulds, Jigs, Fixtures & Tools III. Office equipments & Furniture IV. Land & Building

Rs. 3,50,0 00 1,00,0 00 4,85,0 00 4,00,0 00

Rs.

13,35,0 00 51,60,0 00 64,95,0 00

2) Working Capital (3 years) Total Project Cost

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Product Project Report on Electronic Calculators

Sources of Finance
Amount (in Rs.) 4,50,000 35,46,000 24,99,000 64,95,000

Details Borrowed Capital Owned Capital Partners Capital TOTAL

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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Product Project Report on Electronic Calculators

Utilities
Details Power (per month) Water TOTAL Amount (in Rs.) 5,000 3,000 8,000

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Product Project Report on Electronic Calculators

Suppliers of Testing Equipment and Raw Materials and Components


Machinery:
1.Quality Machine Tools, 34 J.C. Road, JISL Building, Banglore 2. 2.Swastik Machine Tols, 4 Lata Chambers, Nasik 422 002.

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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Product Project Report on Electronic Calculators

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.

Soldering Equipment & Circuit Aids :

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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Product Project Report on Electronic Calculators

Raw Materials / Components :

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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Product Project Report on Electronic Calculators

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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Product Project Report on Electronic Calculators

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

Amount (in Rs.)


4,000 12,000 4,000 2,75,000 2000 25,000 3,40,000 10,000

TOTAL

6,72,000

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Product Project Report on Electronic Calculators

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

Amount (in Rs.)


26,10,000

45,00,000 71,10,000

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Product Project Report on Electronic Calculators

Classification of Annual Turnover


Details Years II 80%

I 60%

III 100%

Pocket Calculators Desk top Calculators

(Rs.) (Rs.) (Rs.) 15,66,00 20,88,00 26,10,00 0 0 0 27,00,00 36,00,00 45,00,00 0 0 0

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Product Project Report on Electronic Calculators

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

40,000 12,99,000 32,11,000

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Product Project Report on Electronic Calculators

Profitability Analysis
Net Profit before Income & Tax

Details Annual Turnover Less : Cost of production NET PROFITS

Amount (in Rs.) 71,10,000 32,11,000 38,99,000

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Product Project Report on Electronic Calculators

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

Total Investment = Fixed Capital + Working = 13,35,000 + 51,60,000 = 64,95,000

Total Investment Capital

Rate of Return

= 38,99,000 64,95,000

X 100

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= 60.03% Thus, the Rate of Return is 60.03%

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Product Project Report on Electronic Calculators

Break Even Analysis


Break-even analysis refers to a system of determination of that level of activity where total cost equals total revenue. Boarder interpretations refer to that probable profit at any level of activity. The relationship among cost of profit, volume of production, profit & sales value established by Break Even Analysis. The point of sales at which there is neither profit nor loss is regarded as BEP. At this point income is equals expenditure. this If production enhanced beyond level,

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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Product Project Report on Electronic Calculators

Net Profit (per year) Break Even Point 100 =

= Rs. 38,99,000 Fixed Cost X

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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Product Project Report on Electronic Calculators

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

promising markets all over India.

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Product Project Report on Electronic Calculators

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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