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“A Project report submitted as per partial requirement for completion of three

year degree in Bachelor in Hospitality and Tourism Studies”

“NOTEBOOK”

Submitted By

VINAY S.TARSE

Padmashree Dr. D.Y.Patil University Department of Hospitality and Tourism


studies, Nerul, Navi Mumbai.
Year 2010-2011

CERTIFICATE

This is to certify that Mr. VINAY S.TARSE. Has successfully completed his
project report based on
ENTERPRENEURSHIP DEVELOPMENT of “NOTEBOOK” under my guidance
and supervision.

Mr. Sanjay Ghokshe.


(Principal)
_________________

Mr. Syed Gouse.


( Project Guide)
_________________
________________

(External Examiner)

Date:-___________

DECLARATION

I herby declared that this project title “NOTEBOOK” is a bonafide record of


project work done by me.

_________________________

Mr. VINAY S.TARSE

Dr.D.Y.Patil University Department of Hospitality and


Tourism Studies, Nerul,Navi Mumbai
Date-______

Note Book

Exercise books are widely known & vastly used as day to day products.
Notebooks are available in the market in various sizes, shapes & pages and
having various types of covers paper bound, board and Rexene bound etc.
Note books are mainly used by students, teachers, house wives to keep their
day to day expenses, business men & office going people. India is producing
enough to full fill its demand of paper. Recently keeping in view the shortage
of writing paper, the government has taken steps to provide the paper at
subsidized rate to the exercise book manufacturers. There is good market for
exercise note book, registers pads & files. It has good scope for new
entrepreneurs.

MANUFACTURING OF NOTE BOOKS

1. INTRODUCTION

Stationery items like note books, exercise books, log books, etc are always in demand
for students. The demand for note books is more in the months of June to August in
every year. Similarly, registers are essential in every office, institutions, organisations,
etc. The size of the products will be decided as per the local market demands.

2. MARKET

There is increasing demand for note books as stationery items in view of rapid growth
in institutions and offices of government and commercial establishments. The market
is good particularly in tribals areas due to non-availability.

3. MANUFACTURING PROCESS

The manufacturing process of note books, registers, etc is quite simple. In this
process, first of all white papers are ruled with the help of ruling machine as per the
local requirement. The the ruled paper sheets are folded into the required size of note
book (92/192 pages) and hten after binding it with grey boards, labels and covers and
pasted on it. These labels can also be printed by the entrepreneur in his own unit and
various multi colour attractive covers can be purchased from the market. After
pasting the covers, cutting is done to give them the finishing touch. The same
procedure is followed for making the registers also.

FINANCIAL ANALYSIS
1)Land & Building
Land is 800 sq.ft.

Land cost pre sq. Ft.= 2,400

750 sq. Ft. Cost is 18,00,000

Location = Taloja M.I.D.C

Financial Aspects:
A fixed Capital

Particulars

Size

Area sq.ft.

Rate
Workshed
50x10
500sq.ft.
12,00,000
Office
25x3
75sq.ft.
1,80,000
Godown
25x5
125sq.ft.
3,00,000
Laboratory
10x5
50sq.ft.
1,20,000

Total

18,00,000
2) Plant & Machinery-
Descripion
Ind/Imp.
Qty.
Price
(Rs.)
Production unit

Thermometer filling plant (mercury) with hg.diffusion pump & pharma pump, tublar
base frame with right & left hand fitted table top.

Imp.

3,00,000
Graduating m/c, hand operated with ball bearing carriage rack drive for verical &
horizontal fine adustment carrige with about 150 mm width & 5 mm hight with ball
bearing cursor & adjusting mechanical line lenght for finer operation.
Imp.
3
45,000
Adusting & testing apparatus with electric heating & drive suitable for temps., upto 95c,
modern high precision design for accommodating 30 thermometers at time.
Imp.
1

68,000

Air compressor directly joined to a motor for 440 V, sufficient for 15-20 burners with
accessories
Ind.
1
50,000
Manifold for LPG for 15-20 burners
Ind.
1
30,000
Annealing furnace, electrically heated
Ind.
1
1,30,000
Graduating machine, precision type with rack and pinion type for fine adjustments
Ind.
2
40,000
Pentographing machine & Rack
Ind.
3
15,000
Mercury distilation plant
Ind.
1
15,000
Blowing burners
Ind.
12
25,000
Ribbon burners
Ind.
3
9,000
Buncen burner
Ind.
10
3,000
Water boiling apparatus, gas heated new improved design
Ind.
2
15,000
Ice pots, double walled wit good insulator
Ind.
3
4,500
glass cutting knives
Ind.
10
1,500
Exhaust fans
Ind.
2
5,100
First aid box
Ind.
1
1,000
Tolls like slide calipers, forceps, scissors etc.
Ind.

2,500
Total

7,59,000

Cost of OFFICE equipment


Sr.No
Item
Amount
a.
Office Table
7000/-
b.
Office Chair
6000/-
c.
Computer with Printer
60000/-
d.
File cabinet
4000/-
e.
Cash box
4000/-
f.
Wall safe
4000/-
g.
Miscellaneous
5000/-

TOTAL
90,000/-

7) Pre-operative Expenses
Sr.No.
Item
Amount
a.
Cost of preparing project report
50000/-
b.
Technical know how expenses
40000/-
c.
Cost of trial production
30000/-

TOTAL
1,20,000/-

TOTAL NON RECURRING EXPENDITURE


Sr.No.
Item
Amount
1.
Plant & Machinery
7,59,600/-
2.
Testing Equipment
30,000/-
3.
Electrification & installation charges
78,960 /-
4.
Cost Of Tool, Moulds, Fixtures, Working Tables
1,40,000/-
5.
Cost of OFFICE equipment
90,000/-
6.
Pre-operative Expenses
1,20,000/-
7.
Installation of Telephone
17,000/-
8.
Land & building
18,00,000/-

TOTAL
30,35,560/-

8)Working Capital-
Personnel (pre month)

Designation
No.
Salary (Rs.)
(Rs.)
Administration & supervisory

Fully trained expert- cum-manager


1
15,000
15,000
Accountant-clerk
1
6,000
6,000
Salesman
1
8,000
8,000
Peon
1
3,000
3,000
Skilled Techanical & Unskilled
Thermometer blowers
5
6,000
15,000
Thermometer graduators/adjustors
3
5,800
9,000
Helpers
2
3,400
6,800
Total

65,800

Salary Per Annum = 65,800 x 12

= 7,89,600
Cost of Utilities per month
Sr.No.
Particulars
Amount
1.
Power
5000/-
2.
Fuel
8000/-
3.
Water
1000/-

TOTAL
14,000/-
Gross Working Capital = 25% on annual sale
= 45,71,700 x25%
= 11,42,925

Assessment of working capital requirement


Gross Working Capital
11,42,925
Less – Promotion Margin
(Net working capital 1/5 of gross working capital )
2,28,585
Working Capital Finance
9,14,340

Project cost

Sr. No
Particulars
Amount
1.
Machinery & Equipment
7,59,000
2.
Other Fixed Assets
90,000
3.
Margin money
2,28,585
4.
Preliminary Exp.
1,20,000
5.
Salary
7,89,600

TOTAL
19,87,600
Means of Finance
Sr.no
Particulars
Amt
1.
Promoters contribution
7,94,874
2.
Bank loan @ 12%
11,92,311

Total
19,87,311
C. Cost of Overheads per Month
1.
Advertisement and Publicity
1000/-
2.
Transport
1000/-
3.
Commission on Distributors
17,000/-
4.
insurance
500/-
5.
stationary
1,000/-
6.
Repair & maintenance
1,000/-
7.
Sales expences
1,000/-
8.
taxes
35,000/-
9.
Sundry Expenses
6,350/-

TOTAL
63,850/-

9) Cost of Raw Material Per Day Rs 5,151/-


Add : 3% Variable Cost Rs 155/-
Total Cost of Raw Material Rs 5,306/-
Cost of Raw Material Per Month Rs 1,59,150/-

10) Total Recurring Expenditure per Month

a.
Cost of Staff & Labour
75,670/-
b.
Cost of Utilities
14,000/-
c.
Cost of Overheads
63,850/-
d.
Cost of Raw Material
1,59,150/-

TOTAL
3,12,670/-

11)Total Investment

Land
18,00,000
Plant & Machinery
7,89,600
Office furniture

Vechile
3,00,000
Working Capital
9,08,040
Utility
1,65,000
Other Equipment
23,000

Total
39,88,640

12)Fixed cost
Land & building
1,20,000
Vechile
30,000
Other Assets
27,600
Intrest on capital Investment
3,98,864
Insurance
14,000
Total
5,90,464

Daily Overview
SR .NO
NAME OF ITEM
QTY
RATE
AMT
1.
thermometer
55 pieces
250
13,750

Total

13,750

Less sales return 5%=

688

---------------
13,062
Sale for 1 year (350 working Days) *350
-------------

13,062 x 350 = 45,71,700/-

TOTAL ANNUAL SALE = 4571700 /-

Cost of production
Sr.No
particulars
Amt.
1
Raw material
1,59,150
2
utilities
14,000
3
Other expences
63,850
4
Salary & wages
65,800

Total
3,02,800

Sales per annum - 45,7,1700


Cost of production- 36,33,600

Profit before interst=


Sales pre annum – cost of production
45,71,700 – 36,33,600= 9,38,100

Interest & Depreciation:-


Particulars
Rs.
Interest on Loan @ 12%
1,43,077
Depreciation on Machinery
75,900
Depreciation on Other Fixed Assets
9,000
Depreciation on Land & Building
1,08,000
Total
4,07,977

Profit before tax=


Profit befor interest & depreciation – interst & depreciation
= 9,38,100 – 4,07,977
= 5,30,123

Net Profit Ratio


= Net Profit per year x 100
Turnover per year

=_ 5,30,123__x 100
45,71,700

= 11.59%

Rate of Return
= Net Profit per year x 100
Total Investment
=_ 5,30,123__ x 100
19,87,185

= 26.67%

PROFIT & LOSS ACCOUNT FOR THE YEAR 2010

Income
Rs.
Expenditure
Rs.
To Raw Materials

To Salaries

To Utilities

To Other Contingent Expenses

To Depreciation

To E.Y.I.

To Interest On Loan

To Net Profit (Before Tax)

18,54,000

7,89,600

1,68,000
7,66,200

2,64,900

1,76,082

86,226

5,30,123

By Sales

By Closing Stock

45,71,700

63,431

46,35,131

46,35,131

E.Y.I. = Estimated Yearly Installment


BALANCE SHEET AS ON 31ST MARCH, 2010
Liabilities
Rs.
Rs.
Assets
Rs.
Rs.
Proprietors Capital
Add:- Net Profit

Loan

Creditors

Bills Payable

4,79,034
5,30,123

10,09,157

7,18,557

4,00,000

4,46,523

Machinery & Equipments


Less:- Depreciation

Land & Building


Less:-Depreciation
Other fixed assets
Less:- Depreciation

Debtors

Closing Stock

Cash in hand

Cash in Bank

7,59,000
75,900

18,00,000
1,80,000

90,000
9,000

6,83,100

16,20,000

81,000

60,000

63,431

31,707

35,000
25,74,237

25,74,237

PROFIT & LOSS ACCOUNT FOR THE YEAR 2011


Income
Rs.
Expenditure
Rs.
To Opening Stock

To Raw Materials

To Salaries

To Utilities

To Other Contingent Expenses

To Depreciation

To EYI

To Interest On Loan

To Net Profit (Before Tax)

63,431

20,39,400
8,68,560

1,84,800

8,42,820

2,38,410

1,76,082

75,879

7,79,001

By Sales

By Closing Stock

50,28,870

2,39,513

52,68,383

52,68,383

BALANCE SHEET AS ON 31ST MARCH, 2011


Liabilities
Rs.
Rs.
Assets
Rs.
Rs.
Proprietors Capital
Add:- Net Profit

Loan

Creditors

Bills Payable

10,09,157
7,79,001

17,88,158

6,32,325

1,50,000

2,50,000

Machinery & Equipments


Less:- Depreciation

Land & Building


Less:-Depreciation

Other fixed asset


Less:- Depreciation

Debtors

Closing Stock

Cash in hand

Cash in Bank

6,83,100
68,310
16,20,000
1,62,000

81,000
8,100

6,14,790

14,58,000

72,000

1,50,000

2,39,513

1,20,280

1,65,000

28,20,483

28,20,483
PROFIT & LOSS ACCOUNT FOR THE YEAR 2012
Income
Rs.
Expenditure
Rs.
To Opening Stock

To Raw Materials

To Salaries

To Utilities

To Other Contingent Expenses

To Depreciation

To E.Y.I.

To Interest On Loan

To Net Profit (Before Tax)

2,39,513

24,47,280

10,42,272

2,21,760

10,11,384

2,14,569

1,76,082
66,774

10,30,605

By Sales

By Closing Stock

60,34,644

4,15,595

64,50,239

64,50,239

BALANCE SHEET AS ON 31ST MARCH, 2012


Liabilities
Rs.
Rs.
Assets
Rs.
Rs.
Proprietors Capital
Add:- Net Profit

Loan

Creditors

17,88,158
10,30,605
28,18,763

5,56,446

1,00,000

Machinery & Equipments


Less:- Depreciation

Land & Building


Less:-Depreciation

Furniture & Fixtures


Less:- Depreciation

Debtors

Closing stock

Cash in hand

Cash in Bank

6,14,790
61,479

14,58,000
1,45,800

72,900
7,290

5,53,311

13,12,200

65,610
5,00,000

4,15,595

2,50,000

3,78,494

34,75,209

34,75,209

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