Professional Documents
Culture Documents
PRODUCT PROJECT
REPORT
On
: PREPARED BY:
Vasoya Jayesh J.
: CLASS:
T.Y.B.B.A.
: COLLEGE:
Smt. M.T.Dhamsaniya College of Commerce &
B.B.A. - RAJKOT.
: ACADEMIC YEAR :
2005 – 2006
ROLL NO. – 27 SEAT NO. –
: SUBMITTED TO:
SAURASHTRA UNIVERSITY.
: GUIDED BY:
Prof. Manish Thaker
DECLARATION
I Vasoya Jayesh J. undersigned a student of T.Y.B.B.A.
own work and has been carried out under the supervision of Prof.
B.B.A. Rajkot.
DATE:
starting his unit. A product project report plays a significant role for
DATE:
1 Introduction of Product.
2 Project at a Glance.
3 Partner’s Background.
4 Location.
5 Market Potential.
6 Raw material.
8 Implementation Schedule.
9 Manufacturing Process.
10 Production Capacity.
(A) Personnel.
(C) Utilities.
13 Project Cost.
14 Sources of Funds.
15 Depreciation.
16 Financial Analysis.
(B) Turnover.
17 Suppliers of Machinery.
18 Future Prospects.
19 Risk Factors.
Introduction Of Product
Biscuits constitute an important item of bakery industry.
food with the changes taking place in the economic life of masses,
the consumption of Biscuit has been increasing over the years, and
using baking ovens very popular in the market now days. To made
ready mix and after adding water, the dough will be ready mix hour
Partner’s Background
Partner – I
Partner – II
Location
To choose the proper location is first step for establishment
are as follows:
2. Cheaper Manpower.
3. Transport Facilities.
because Raw material and labour are the main factors in this
Market Potential
The consumption of Biscuit has been increasing over the
areas.
2. Semi-Urban Market.
3. Rural Market.
Raw Material
The main raw material used in Biscuit Mixture are as
follows:
1. Wheat Flour.
2. Sugar.
3. Vegetable Fat.
4. Miscellaneous Items.
(B) Chemical.
5. Packing Material.
market. So, there is no difficulty to get raw material. So, there is les
annul.
2. For the first 2 years the utilisation capacity will be 65.71% from
size paper box and then kept in big cartoons for storing and
to be looked into.
Production Capacity
No. Item Size Production Utilized
1. Biscuit Mixture. 100 gm. Packets 3,50,000 2,62,500
Packets Packets.
2. Biscuit Mixture. 200 gm. Packets 3,50,000 2,62,500
Packets Packets.
= 15,72,000
Working Capital
1. Personnel
No. Particular No. of Monthly Total Cost
Employees
1. Manager 1 8,500 8,500
2. Accountant Store-keeper 1 6,500 6,500
3. Clerk cum Typist 1 4,000 4,000
4. Mechanical Supervisor 1 3,000 3,000
5. Peon cum Chowkidar 2 2,000 4,000
6. Skilled labour 3 2,100 6,300
7. Unskilled labour 7 1,100 7,700
Total salary & wages 16 40,000
Add Facilities (20% of salary) 8,000
Total 48,000
2. Raw material [per month]
= Rs. 2,17,000
= 2,17,000 × 3
= Rs. 6,51,000
Project Cost
1. Fixed Capital
No. Particular Amount
1. Land and Building 12,00,000
2. Machinery & Equipment 2,65,000
3. Other Fixed & Installation
a. Electricity & Installation 26,500
b. Office Function & other Equipment 80,500
Total 15,72,000
2. Working Capital
Sources of Funds: -
Partners Capital: -
Borrowed Capital: -
Interest on Fund: -
Depreciation: -
Cost of Production
No. Particulars Amount
1. Total recurring cost per year (2,17,000 × 12) 26,04,000
2. Total Depreciation 2,59,090
3. Interest on Investment 2,33,415
30,96,505
Turnover
No. Particular Rate per packet Quantity Value
1. Biscuit Mixture 200 Rs. 9.5 2,30,000 21,85,000
g.m. Packet
2. Biscuit Mixture 100 Rs. 4.5 2,30,000 10,35,000
g.m. Packet
Annual Turnover 32,20,000
Return on Investment
ROI = EBIT × 100
Cost of Project
= 3,56,910 × 100
22,23,000
= 16.05%
Cost Of Capital
COC = 9 + 12
= 10.5 %
Thus, ROI > COC
Profitability Analysis
Sales 32,20,000.00
Less: Cost of Production 28,36,090.00
EBIT 3,56,910.00
Less: Interest 2,33,415.00
EBIT 1,23,495.00
Less: Tax 35 % 43,223.25
PAT 80,271.75
Sales
= 9,18,400 × 100
32,20,000
= 28.52%
Sales
= 80,271.75 × 100
32,20,000
= 2.50%
Fixed Cost:
7,94,905
Variable Cost:
23,01,600
Contribution:
= 32,20,000 – 23,01,600
= 9,18,400
Contribution
= 7,94,905 × 65.71
9,18,400
= 56,87%
Trading & P&L Acc.
Suppliers of Machinery
Address of Machines and
Equipment Suppliers:
(i) M/s. Nagpal Brothers,
2789 Zorawar Singh Marg, Delhi.
Loharogate, Patiala.
Locally Available
Risk Factors
In each and every business activity there is some risk in the
some way our unit is also having some risk factory, which are as
follows:
from government.
It is also possible that all the factory may suitable for production
and finance but the marketing of our products may not enough
Future Prospects
Every unit airs at its growth and development in future at the
good quality.