“INDUSTRIAL TRAINING REPORT”

ON

“EXPENSE ANALYSIS”

AT

“MVM Industries”

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT

FOR THE DRGREE OF

MASTER OF BUSINESS ADMINISTRATION

(2019 – 2021)

SUBMITTED TO:- SUBMITTED BY:-

Vijay Kumar
Roll No. 191561231230259
 DECLARATION

I Vijay Kumar student of M.B.A of HPU (Icdeol) Shimla affiliated to UGC does hereby
declare that the project report titled " Expense Analysis " is a genuine research work
undertaken by me in and all the information, facts and finding furnished in this report is
result of my hard work and are original in nature and it has not been published anywhere
earlier.

Vijay Kumar
 ACKNOWLEDGEMENT

Master of Business Administration is the first step in the professional area for a
student where they get to understand the managerial corner of the working of an
organization. So, it is important that whatever has been learnt theoretically, the practical
implication of the same should also be learnt. Fortunately, I got the opportunity to
undertake my internship in a professionally very well managed.

I Would like to take this opportunity to express my thank to “ MVM INDUSTRIES

BADDI ” for providing me tremendous plate-form for 45 days Summer training
program under the guidance of its highly regarded and knowledgeable officers.

The summer internship program was all the more learning experience for me. Apart from
working on my project, I worked with staff of the organization and got to understand the
real work time conditions and learnt them. Industrial training is platform for a student to
supplement this theoretical knowledge. The main purpose of industrial training is to get
an exposure in industrial environment which is not possible in classroom.

This project report is the result of working on project with MVM Industries, which
served integral part of curriculum. It provided me the experience of industry before
coming into the corporate world. It helped me to view the world of business.

The project game me the great deal of exposure and I found the practical work totally
different from the theoretical work.

I feel immense pleasure in submitting this report on industrial summer training with
deep sense of gratitude. I would express my sincere thanks to Mr. Chander Govind “
Sr. Finance Officer ” of the company who allowed me to undergo training at their
organization.
 PREFACE

The Summer training in an organization is an integrated part of MBA program. It exposes

student to the problem areas and provide knowledge as how to face their problems area
and provide confidence as how to solve these problems.

There is gap between theory and practice and the training is aimed at removing this gap
and to increase process of communication between future manager and industrial sector.
In present age of business, where profit maximization is the main objective, price and
quality are the major thrust area to conquer the market.

The project “EXPENSE ANALYSIS” has given me Opportunity to visit Account

Department of the company and study the procedure and other techniques being used by
them. The study should also benefit the organization in reorganize its strengths and
detecting the weakness.

.
 DECLARATION

I Vijay Kumar student of M.B.A of HPU (Icdeol) Shimla affiliated to UGC does hereby
declare that the project report titled " Expense Analysis " is a genuine research work
undertaken by me in and all the information, facts and finding furnished in this report is
result of my hard work and are original in nature and it has not been published anywhere
earlier.

Vijay Kumar
 CONTENT

Chapter No TABLE OF CONTENTS

INTRODUCTION OF COMPANY
Profile of company
Chapter No. 1 Mission
Vision

Industrial Products

INTRODUCTION OF THE TOPIC

Meaning of expense analysis
Chapter No. 2
Objectives of expense analysis
Types of expense analysis

Major industrial elements of expense

Chapter No. 3.

Chapter No. 4. Objectives of the study

Chapter No. 5. Research Methodology

Conclusion
Chapter No. 6.
Bibliography
Profile of company

MVM Industries

Founded in 2010, MVM Industries has established itself as a premier Home Appliances

manufacturing company. Over the years, our customers have relied upon us to deliver

quality products consistently time and again. We have very well catered to the

demanding and challenging requirements of our customer to suit their respective

markets and competition strategies

As a leading provider of Induction Cook Tops, Blenders, Kitchen Hoods, Rice Cookers,
Gas Hobs and Kettles, MVM Industries provides you with a sagacious
one-stop solution for all of your Home and Kitchen Appliance requirements.

We at MVM Industries are truly committed to providing you with superior quality,
personalized customer service, attention to detail and competitive pricing. We enter the
market early so our customers have the opportunity to strike first and take over the
market.

By associating with MVM Industries, our customers achieve faster time-to-market, huge
varieties and variants of products and categories.

Large volume orders can be seamlessly produced with shorter lead times as per our
customer requirements. Our customer can leverage the advantage of combative pricing
and shorter lead times to position themselves ahead of competition.

We support budding brands by tailoring procurement requirement to adjust to their

needs without burdening them with MOQs.

Punctilious and scrupulous team of experienced engineers of our company shall be too
glad to participate and meticulously handle any new product development or innovation
to grow every category vertical and the business.

We have two manufacturing units strategically located to cater to our dynamic domestic
market and opulent overseas clients as well.

Any certification requirement shall be met to the fullest satisfaction of our customer
with MVM Industries bearing the cost in most cases.
Vision & Mission
Leadership Maintain our leadership of the Indian Industry through the
continuous modernization and expansion of our manufacturing
facilities and activities, and through the establishment of a
wide and efficient marketing network.

Profitability Achieve a fair and reasonable return on capital by promoting

productivity throughout the company.

Growth Ensure a steady growth of business by strengthening our

position in the cement sector.

Quality Maintain the high quality of our products and services and
ensure their supply at fair prices.

Equity Promote and maintain fair industrial relations and an

environment for the effective involvement, welfare and
development of staff at all levels.

Pioneering Promote research and development efforts in the areas of

product development and energy, and fuel conservation, and
to innovate and optimize productivity.

Responsibility Fulfill our obligations to society, specifically in the areas of

integrated rural development and in safeguarding the
 environment and natural ecological balance.

PRODUCTS

1

Description of ISM 01

Indian menu options:

This induction cook top has pre-set Indian menu to help you to cook your
favorite dish without any qualms

Automatic Voltage Regulator:

It has an automatic voltage regulator that ensures durability. It is based on
power-saving technology, to make sure that more food is cooked while using less
power. Best of all, it comes at an affordable price. This is an economical and a
quicker way to cook.
Power Consumption Display
While this unique feature of power consumption display stands out from the rest
of the induction stoves, this appliance not just shows you the consumption but also
consumes lesser power in co operating the power saver technology. The appliance
consumes a maximum of 1200 watts for an efficient performance.
Highlights
 Indian menu options
 Aero dynamic cooling system
 Automatic voltage regulator
 1200 Watts power
 1year warranty

 Specifications:

General
Color Black
Body Material Plastic
Control Push Button
Functions Cook ,Heat
Other Functions Child lock function
Cooking Menus 8
Auto OFF Yes
Display Yes
Push Buttons Touch

Cord Length 1.2 meters

Compatible Stainless Steel Pots ,Stainless Steel Rice Cookers ,Cast Iron Frying
Utensils Pots ,Oil
Boiling Pots ,Stainless Steel Water Jugs ,Grilling Iron Plates
 Individual 384x304x80
Carton
Master Carton 500x315x415
No .of
individual 6 units in one Master carton
carton units in
one Master
carton
Product Weight 1.86 KG
Power and
Voltage
Power 1200 watts
Voltage 220 -240 V
In The Box
Box Contents Main Unit ,User Manual

MSGM01

2

Mixer Body:
  Compactly built and elegantly designed ,this mixer grinder
occupies less space but attar acts more attention
 Sturdy Body made up of ABS plastic

Three Mirror Finish Stainless Steel Jars:

Sl Jar Description Capacity Material Handle Lid

No
1 Wet Grinding Jar 1500 ml Stainless ABS Transparent
Steel Plastic
Dome Lid
2 Semi Dry Grinding 1000 ml Stainless ABS White
Jar Steel Opaque Lid
 3 Dry Grinding Jar 400 ml Stainless ABS White
Steel Opaque Lid

Features & Functions :

Super Sharp Blades

Prestige mixer grinder is equipped with 6 stainless steel multi-purpose blades that
assist in dry and wet grinding and mixing all nutritious components together. With
the availability of 3-speed settings, you can grind soft and hard fruits and
vegetables accordingly. Also, such sharp blades need to be washed with care after
use.

Rust-Proof Plastic Body

The Prestige mixer grinder add touch of style to your kitchen with its well-
designed plastic body that has optimum grace with special features. Its material is
rust-free and so will not get corroded easily ,ensuring its longevity and grace for a
long time. The switch buttons and light indicator available on its outer core help
you deal effectively with its functions.

Powerful Universal Motor AC supply:

The powerful 750W universal motor which operates with the AC supply of 220-
240V,

Reduces the hysteresis in the motor core resulting in less temperature rise there by
increasing the life of the motor.
  3 Description Of KSM1

Capacity
With this 1.2L electric kettle, you can comfortably make
delicious noodles, steaming cup of coffee, and tasty boiled
eggs in a jiffy. No matter where you are, whether you are
traveling , watching a late night movie at home or in your
hostel room preparing for your exam, with this kettle you
can make prepare and savor food within minutes.

Auto Shut - Off and Auto Keep Warm Function

Just switch on this appliance and carry on with your work without worrying about
overheating as this kettle comes with an auto shut-off feature. Once the water is
boiled, this
Appliance automatically switches off and keeps the water warm for a long duration of
time.

Lockable Lid

To make your travel experience better and worth while, this kettle comes with a
lockable lid to ensure that the liquid inside doesn’t spill while you are traveling.

Power Consumption

With this kettle , you don’t have to worry about paying high electricity
bills as this kettle consumes just about 1500 W of power.

Highlights
 Concealed element
 Wide mouth for easy cleaning
 Automatic cut-off
 Stain less steel body
 Single touch lid locking
 360˚swivel power base

Specifications:-
General
Color Silver
Body Material Stainless steel
Capacity in Liters 1.2
 Coil Type Concealed
Power indicator Yes
Light
Auto cut off Yes
360˚ rotational Yes
Base
Water level No
indicator
Length of cord 2 meter
Weight 1.6Kg
Power and Voltage
Power in put in 1500
Watts
Voltage 230V
In the box
Box Contents Main Unit , User Manual

Powerful Universal Motor AC supply:

The powerful 750 W universal motor which operates with the AC supply of 220-
240V,
Reduces the hysteresis in the motor core resulting in less temperature rise ,there by
increasing the life of the motor.

4
Description of WGSM 04
Conical Grinding Stones

The grinding action is done by specially designed conical grinding stones that are of
a high quality and have a great wear resistance With their heavy mass and high
contact surface area ,they grind up the ingredients to a fine paste.

2 Litre Food Grade Stainless Steel Drum

The grinding drum on the Prestige wet grinder has a two litre capacity and can
grind up sizable batches of batter to make more Idlis and Dosas. The drum is made
out of a high quality food grade stainless steel that keeps the batter fresh without
contamination.
Unbreakable Transparent Lid

The Prestige PWG 05 wet grinder features a strong polycarbonate lid that covers up
the drum during operation . Being transparent it also allows you to look into the
drum while grinding .It is tough and durable and lasts for long.

Non-Slip Feet

The grinder features on slip feet that keep it firmly planted on the floor . The feet
material is designed to give superior grip and vibration noise reduction during
operation.

Other Important Features

A specialized tool allows you to mix and knead atta for your chapattis and rotis
while you go take care of other things .This wet grinder also feature coconut
scraping tool which allows you to scrape coconuts quickly , shortening your time in
the kitchen.

Highlights:
 Compactable top design
 Stainless steel drum
 High quality grinding stones
 2 liter capacity
 Coconut scraper attachment
 Atta kneader attachment
 200 watts motor

Specifications:

General
Color White & Maroon
Body Material ABS Main body ,Stainless steel drum
No .of Grinder 2
Rollers
Functions Grinding
Other Functions Atta Kneading ,Coconut scrapping
Locking System Yes
Auto OFF No
Dry Grinding No
Wet Grinding Yes

Cord Length 1.5m

Compatible
Utensils
Individual
Carton
Master Carton
No .of
individual
carton units in
one Master
carton
Product Weight
Power and
Voltage
Power 200 watts
Voltage
In The Box
Box Contents Main Unit, User Manual
 5 Description Of RCM 01
Capacity
This rice cooker comes with a capacity of 1.2 liters which is ideal for cooking for
a family of 7-8 It uses the principle of steam for cooking which retains the
nutrients of your cooked food and the pressure makes cooking less time
consuming.

Material
Made from Aluminum with lids made from Stainless steel, the rice cooker is
provided with a non-stick coating which is always helpful .This cooker with
detach able power cord prevents food from burning and uses less oil during
cooking making food healthy and tasteful. The cool touch hand les provide
good grip for carrying and indicator lights help in cooking process .It comes
with detachable power cord.

Compatibility
This cooker operates on electricity. It uses 700 Watt of power to operate
which provides speedy cooking. You can easily carry this cooker on your
outdoor trips and events where electricity supply is available and enjoy tasty
hand cooked food. Gift this cooker to your friends and loved ones on any
occasion and it will remind them of your true love and care every time they
will cook tasty meal in this.

Safety
Being presented by at rust worthy brand, this electric cooker is safe to use a sit
has been designed keeping all safety standards in mind. You should keep it away
from small children as it uses electricity as power for cooking which can prove to
be hazardous if not handled properly.

Highlights
 Stainless steel close fit lid
 2 aluminum cooking pans
 Detachable power cord
  Cooks up to 1Kg.of rice

Specifications:
General
Color White
Body Material ABS
Type of Lid Stainless steel
Cooking Pan 2 Aluminum Pans
Capacity 1.2 liters
Detachable Yes
power
Cord
Functions Cooking , Steaming ,Soup Making
Power and
Voltage
Power 700 watts
Voltage 240V
In the box
Box Contents Main Unit , User Manual

Highlights
 Stainless steel close fit lid
 2 aluminum cooking pans
 Detachable power cord
 Cooks up to 1Kg. of rice

Specifications:

General
Color White
Body Material ABS
Type of Lid Stainless steel
Cooking Pan 2 Aluminum Pans
Capacity 1.2 liters
Detachable Yes
power
Cord
Functions Cooking , Steaming , Soup Making
Power and
Voltage
Power 700 watts
Voltage 240 V
In the box
Box Contents Main Unit , User Manual
 EXPENSE ANALYSIS

INTRODUCTION

Expenses can be defined as “Any cost that a company bears in an attempt to

maximize its revenues, and thereby its profits”. It is a cost to sustain and excel in
business and results in an “outflow” of funds. An expense is a part of the income
statement – a key financial statement. Hence, it is inevitable to have clarity on the
meaning of expense in accounting

In an ideal scenario, a company would like to reduce its expenses in business to a

minimum level, without hampering its revenues. It is to be noted that “All
expenses are costs while all costs are not expenses necessarily”.

It is calculated for an accounting period, generally one financial year. Expenses are
accounted under “accrual principle” i.e. it is recognized for an accounting period
irrespective of whether it is incurred presently or not. Following the rules of debit
and credit “Expenses” are debited.

An expense is the reduction in value of an asset as it is used to

generate revenue. If the underlying asset is to be used over a long period of
time, the expense takes the form of depreciation, and is charged ratably over
the useful life of the asset. If the expense is for an immediately consumed
item, such as a salary, then it is usually charged to expense as incurred.
Common expenses are:

 Cost of goods sold

 Rent expense
 Wages expense
 Utilities expense
 If an expenditure is for a minor amount that may not be consumed for a long
period of time, it is usually charged to expense at once, to eliminate the
accounting staff time that would otherwise be required to track it as an asset.

Under cash basis accounting, an expense is usually recorded only when a cash

payment has been made to a supplier or an employee. Under the accrual
basis of accounting, an expense is recorded as noted above, when there is a
reduction in the value of an asset, irrespective of any related cash outflow.

The purchase of an asset may be recorded as an expense if the amount paid is

less than the capitalization limit used by a company. If the amount paid had
been higher than the capitalization limit, then it instead would have been
recorded as an asset and charged to expense at a later date, when the asset
was consumed.

The accounting for an expense usually involves one of the following

transactions:

 Debit to expense, credit to cash. Reflects a cash payment.

 Debit to expense, credit to accounts payable. Reflects a purchase made
on credit.
 Debit to expense, credit to asset account. Reflects the charging to
expense of an asset, such as depreciation expense on a fixed asset.
 Debit to expense, credit to other liabilities account. Reflects a payment
not involving trade payables, such as the interest payment on a loan, or an
accrued expense.

Under the matching principle, expenses are typically recognized in the same

period in which related revenues are recognized. For example, if goods are
sold in January, then both the revenues and cost of goods sold related to the
sale transaction should be recorded in January.
An expense is not the same as expenditure. Expenditure is a payment or the
incurrence of a liability, whereas an expense represents the consumption of an
asset. Thus, a company could make a $10,000 expenditure of cash for a fixed
asset, but the $10,000 asset would only be charged to expense over the term
of its useful life. Thus, expenditure generally occurs up front, while the
recognition of an expense might be spread over an extended period of time.

Expense management is the concept of reviewing expenses to determine

which ones can be safely reduced or eliminated without having an offsetting
negative impact on revenues or on the development of future products or
services. Budgets and historical trend analysis are expense management tools.

OBJECTIVES OF EXPENSES ANALYSIS

1. Expenses analysis is used for estimating the profit and loss of every operation.
It also helps to determine the management about the unit cost of service,
department or job and product.
2. It is used for taking necessary financial decisions by collecting and contributing
appropriate data.
3. It helps in the administration of future production policies.
4. Expenses analysis main objectives increasing the profit of the firm.
5. Along with various department ads, it helps to combine the cost reduction
programmed.

TYPES OF EXPENSES

Different types of expenses in accounting include the following:

COST OF GOODS SOLD (COGS) OR DIRECT EXPENSES:

Expenses directly related to generating sales revenues form a part of COGS. A
manufacturing firm may include the cost of raw materials and wages to workers
in the cost of goods sold. A retailer may include the cost of merchandise under
this head. The deducting cost of goods sold from sales/revenue, one can arrive at
gross profits.

INDIRECT EXPENSES:

Indirect expenses (also termed synonymously with operating expenses) are also
called selling, general and administration expenses. Common indirect expenses
include utility bills, selling expenses like advertising expenses and commissions
paid to salesmen, salary for supervisors, etc. Deducting operating expenses
from gross profit, one can arrive at Profit before Taxes (PBT) or Income from
Operations.

NON-OPERATING EXPENSES:
While the former two types of expenses fall in operating expenses, non-operating
expenses refer to those expenses which are not related to “revenue generation
for the core business activity”. Some examples include- the cost of borrowing,
commission on share transactions when core business is trading of garments,
donation or charity expenses etc.

VARIABLE EXPENSES:
Virtually every business has variable expenses, which move up and down in tight
proportion with changes in sales volume or sales revenue. Reducing variable
expenses means more money in your pocket every time you make a sale.

Here are examples of common variable expenses:

 The cost of goods sold expense, which is the cost of products sold to
customers
 Commissions paid to salespeople based on their sales
 Franchise fees based on total sales for the period, which are paid to the
franchisor
  Transportation costs of delivering products to customers via FedEx, UPS,
and freight haulers (railroads and trucking companies)
 Fees that a retailer pays when a customer uses a credit or debit card

Cost of goods sold is usually the largest variable expense of a business that sells
products. Other variable expenses are operating expenses, which are the costs of
making sales and running the business. The sizes of variable operating expenses,
relative to sales revenue, vary from industry to industry.

Delivery costs of Wal-Mart and Costco, for instance, are minimal because their
customers take the products they buy with them, so they only have to focus on
deliveries to a relatively stable number of warehouses. Other businesses deliver
products to their customers’ doorsteps, so that expense is obviously much higher
(and dependent on which delivery service the company uses — FedEx or UPS
versus the U.S. Postal Service, for example).

FIXED EXPENSES:
Fixed operating expenses include the different costs that a business is obligated
to pay regardless of changes in sales levels. As an example of fixed expenses,
consider the typical self-service car wash business — you know, the kind where
you drive in, put some coins in a box, and use the water sprayer to clean your car.

Almost all the operating costs of this business are fixed: rent on the land,
depreciation of the structure and the equipment, and the annual insurance
premium don’t depend on the number of cars passing through the car wash. The
main variable expenses are the water and the soap, and perhaps the cost of
electricity.

Fixed expenses  are the costs of doing business that, for all practical purposes, are
stuck at a certain amount over the short term. Here are some more examples of
fixed operating expenses:

 Gas and electricity costs to heat, cool, and light the premises
 Employees’ salaries and benefits
 Real estate property taxes
 Annual audit fee (if the business has its financial statements audited)
 General liability and officers’ and directors’ insurance premiums
MAJOR INDUSTRIAL ELEMENTS OF EXPENSE

1. Power and fuel expenses.

2. Manpower Expenses.

3. Consumable store and spare.

4. Other manufacturing expenses

5. Administration expenses.

6. Repair and maintenance.

OBJECTIVES OF THE STUDY

1. To study different types of expenses of the company.

2. To evaluate profit as well as cost pertaining to the organization.

3. Learning how to enter expenditure into System application &

product.

4. To include expenditure into system application & product.

5. To study the major industrial elements of expense.

6. To study the process of expense analysis.

7. To know, how to check genuinely of all bills of expense.

RESEARCH METHODOLOGY

What is Research?
Research comprises "creative work undertaken on a systematic basis in order to
increase the stock of knowledge, including knowledge of humans, culture and
society, and the use of this stock of knowledge to devise new applications." It is
used to establish or confirm facts, reaffirm the results of previous work, solve new
or existing problems, support theorems, or develop new theories.
A research project may also be an expansion on past work in the field. Research
projects can be used to develop further knowledge on a topic, or in the example of
a school research project, they can be used to further a student's research prowess
to prepare them for future jobs or reports. To test the validity of instruments,
procedures, or experiments, research may replicate elements of prior projects or the
project as a whole. The primary purposes of basic research (as opposed to applied
research)are documentation, discovery, interpretation, or the research and
development (R&D) of methods and systems for the advancement of human
knowledge. Approaches to research depend on epistemologies, which vary
considerably both within and between humanities and sciences. There are several
forms of
research: scientific, humanities, artistic, economic, social, business, marketing, prac
titioner research, life, technological, etc.

STEPS TO CONDUCTING RESERACH

Research is often conducted using the hourglass model structure of research. The
hourglass model starts with a broad spectrum for research, focusing in on the
required information through the method of the project (like the neck of the
hourglass), then expands the research in the form of discussion and results. The
major steps in conducting research are:

 Identification of research problem

 Literature review
 Specifying the purpose of research
 Determining specific research questions
 Specification of a conceptual framework, usually a set of hypotheses
 Choice of a methodology (for data collection)
 Data collection
CONCLUSION

Every organization has pre-determined set of objectives and goals, but reaching
those objectives and goals only by proper planning and executing of the plans
economically. The Mvm Industries is objectives of planning promoting and
organizing an integrated development of All Home Appliances Manufacturing
Companies. The corporation mission of Mvm Industries, is to make available and
quality service in increasingly large quantities, the company will spear head the
process of accelerated development of this sector by expeditiously. The
organization needs the capable personalities as management to lead the
organization successfully, the management makes the plans and implement of
these plans are expressed in terms of cost and cost control.

The Mvm Industries has cost process in two stages. One is the capital expenditure
cost and another is operating maintenance cost, the capital expenditure cost shows
the list of capital projects selected for investment along with their estimated cost,
operating & maintenance cost refers to the repairs & maintenance costs, the special
costs are rarely used in the organization like long-term costs, research &
development cost and cost for consultancy. It is to make available and quality work
efficient resources and implementation of sophisticated technology and generation
and also creating ambience of collective working of its employees.

Expense analysis mean’s analyze the all expenditures or cost of the company.
Analyze the direct expenses, indirect expenses, capital expenditures, all operating
expenses (Daily Root Expenses) long term expenses for achieving the goals and
objectives of the organization.

BIBLIOGRAPHY

Websites visited

 www.google.com
  www.mvmindustries.com

 www.sar-group.com 

 www.yangistaan.com

 www.scribd.com

 Encyclopedia

 www.accountingtools.com

 www.wikipedia.org

 Personal interaction

Books

 Management Accounting

By I. M. Panday

 Financial Management

By M. Y. Khan and P.K. Jain

 Cost Accounting

By Dr. S.N. Maheshwari

Magazines

 Business world&Business Today