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Entrepreneurship Development Institute of India PRODUCT PROJECT REPORT ON WHEEL CAPS

PREPARED BY
Enrolment No.: Address: - “MAA” 36, Divya Siddhi Park Airport Road RAJKOT 360 005. Tele No : - 0281 – 2471683 091010067E Name: - HIREN P MEHTA

EVALUATED BY
Name: - SHRI MAYANK UPADHYAY Address: - YUVAK VIKAS TRUST OPP. NAVJIVAN PRESS OFF ASHRAM ROAD AHMEDABAD, GUJARAT Tele No : - 079 -27540482

DECLARATION I undersigned Nainesh M. Mashrani, a student of TYBBA hereby declare that the project work presented in this report is my own work and has been carried out under the supervision of Dr. Swati Doshi of Christ College, Rajkot. This work has not been previously submitted to any other industries or university for examination.

Date:Place: - Rajkot (Nainesh Mashrani)

PREFACE The course of B.B.A. is designed in a special way through which young entrepreneurs are generated. In the third year of this course, the subject “entrepreneurship and Management of Small Scale Business” is included with a view to creating and developing good entrepreneur skills and attitudes among students in a practical and professional way. Today in the growth rate of the Indian economy, contribution of small scale industry is highly important. The S.S.I. plays a vital role by contributing 40% to the total national income. Therefore it is management and working of SSI as a student of management. As such, I have great pleasure in the presentation of the report on “Wheel Caps” which is the practical study in TYBBA of Saurashtra University. The report prepared is completely imaginary with fictitious information and imaginary figures to acquire practical knowledge.

ACKNOWLEDGEMENT In accomplishing any task a person is aided by many people who through their little or more contribution help in his/her success. I take this opportunity to express my sincere thanks to all those who have helped me in the preparation of this report. Also I would thank my parents and friends and Dr. Swati Doshi for constant support and encouragement due to which the work is accomplished.

Date :– Place :– (Nainesh Mashrani)

No.INDEX Sr. 1 2 3 4 5 6 7 8 9 10 11 12 13   14 15 16 Particulars Introduction Project at Glance Promoter Background Organizational Structure Justification of Location Product Details Market Potential Raw Materials Machines Manufacturing Process Production Capacity Schedule Staff and Labour Details Financial Details Total Fixed Asset Cost of Production Total Working Capital Requirement Total Capital Investment Source of Finance Page No. .

17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Interest of Capital Depreciation Annual Cost of Production Break Even Analysis Cost of Capital Return on Investment Profitability Analysis Projected Operating Statement Projected Cost Sheet Projected Balance Sheet Projected Profit & loss Account Projected Balance Sheet Risk Factors Name & Address of Raw Material Suppliers Name & Address of Machineries Suppliers Disclosure of Significant Accounting Policy Conclusion .

As per the current market trend everyone likes changes and not rigidity. Wheels are the main part of the car and are used the most than any other part in the car. the whole view of your wheels gets changed just by changing its caps. the employment provision and value of exports by these industries have grown substantially during the last few decades. the volume and range of products manufactured. no matter whether private or transport vehicles a task could not be completed independently. Most of the business carried out in India is from small scale units. It is not possible every time to change the whole wheel to change its show. Many a time we get bored by seeing same things again and again. Small scale units provide raw materials to large scale units. so here I came with a solution by manufacturing the wheel caps.INTRODUCTION Small scale industry is the pillar of Indian economy. Without the help of vehicles. The number of small scale units. . In this fast moving world vehicles play a vital role in itself.

Rajkot Gujarat – India. Aji G. Ltd.C. 1.D. Mean of Finance - Cost of Project - .I. Mashrani Wheel Caps Small Scale Industries Applied For Owners Capital 50% Rs. lakhs Borrowed Capital 50% Rs. 50.D.I. Industrial Area. 000 Factory Location - Form of Organization Name of Promoter Name of Product Size of Unit S. Industrial Area. B/3/97 . Registration No.I. lakhs Rs.S.PROJECT AT GLANCE Name of Unit Registered Office Torque Wheel caps Pvt. Plot No. 00. Sole Proprietorship Nainesh M.C. Aji G.Rajkot Gujarat – India. Plot No. B/3/97 .

C. Aji G.A. Industrial Area Rajkot. Mashrani 21 years Torque Wheel caps Pvt.D.I.B. Plot No. B. [Marketing] Administration & Marketing 50% of Total Capital Qualification Role in Unit Financial Contribution - .PROMOTER BACKGROUND Name Age Office Address Nainesh M. B/3/97. Ltd.

ORGANIZATIONAL STRUCTRE Chairman Finance Production Supervisor Skilled Worker Semi Skilled Worker Unskilled Worker Accountant Peon / Clerk Marketing Salesman Watchman .

Here there are many benefits for setting up the unit.JUSTIFICATION OF LOCATION One of the most important issues that need to be taken into consideration before establishing a new unit is the location of the proposed project.C. It involves cost which affect to the profitability of the business.I. which is an industrial area. This unit is to be located at Rajkot in Aji G. Following are the advantages which justify the location of Aji area – • Easy availability of the raw materials • Nearness to target market • Availability of good infrastructure facilities • Easy availability of labour and at cheaper rate . We have to take into consideration many points.D. Moreover there are other environmental condition and infrastructure facilities too.

no matter whether small cars or large trailers. shapes and sizes. shapes. . It is available in many different sizes. • One gets 100% consumption from this product as there is no wastage of product. • Price of the product is economical as compared to other competitors so even the small class people can afford to buy it. Once the brand occupies its space in the market. So the customers have wide choice for selection. • Wheel caps can be fit in all the four or more wheel vehicles. company would have to face less competition in this competitive market. etc. BRAND NAME: Brand represents the company in the mind of the customers. Good brand creates goodwill of the firm in the market.PRODUCT DETAIL A product is anything that can be offered to market for satisfying the consumers needs and wants. colours. This product is mainly used in the replacement market and rarely used for the OE [Original Equipment] customers. Brand also plays an important role in marketing. USES: Wheel caps are used to cover the rims of the tyres. Product Features: There are many features of wheel caps and they are as follows: • Wheel caps are of many different designs. designs.

Company ‘ s LOGO: .

promotional schemes and advertising is done and the most important is by providing qualitative goods with innovation. to attract the customer by providing effective and attractive sales. Now a day the main aim of business is creation of customers as marketing is more important than production. Today to stand in the competition and capture more market. The Losers are those who bring nothing special in the market and the winners are those who carefully analyze the market need. As a result there are winners and losers. identify opportunities and create value added offer for target customers group that matches the needs.MARKET POTENTIAL Market oriented thinking is necessary in today’s competitive world. We too know now a day the accessories market is flourishing day by day and touching the heights which were never touched before. This itself shows there is unlimited demand for these kinds of products. Now a day’s most of the companies are competing to enlarge their share in the existing market. Customer oriented marketing is a theme of modern marketing management. Here the thing matters is not “How would you sell?” but “How much can you manufacture?” . there is a great scope for growth of this industry. There is a vast market available for wheel caps and considering the population of our country. It has also enormous demand as these wheel caps help in improving the looks of the vehicles.

. but for higher durability it is preferred to use HIP Grade plastic which is suitable for wheel caps.RAW MATERIALS The main raw material used for manufacturing wheel caps is HIP Grade Plastic Graneauls. For manufacturing wheel caps exact plastic sheets are not used but instead plastic greneauls are used. There are many companies in India which manufactures this grade of plastic. Plastic are available of many different grades.

Rest all the functions remains the same. The unit to be set up need the following machines for producing the wheel caps – 1) 2) Cooling tower :This machine helps to cool down the hot plastic wheel plate after grinding. accurate and qualitative. 3) Injection moulding [vertical] :The only difference between the working of horizontal and vertical moulding machine is that one works on horizontal way and the other on vertical basis. Machines give lot of work if not handled properly. Injection moulding [horizontal] :This machine moulds or in other words gives the hot plastic its desired shape based on the die used.MACHINES Machines play a very important role in any manufacturing unit. simpler. This machine pushes the plastic from left and leaves the plastic to dense itself on the right hand side in the die. If this is done then machines will last for a longer durations. Machines make the work easy. Machines make the work of the workers easier and even with the help of the machines we get faster work done. 4) Injection moulding [manual] :Manual moulding machine is operated fully by the labors whereas horizontal and vertical moulding machines are fully automatic. . The same standard of quality can be achieved in the product through the use of machines. Basically machines require regular and proper maintenance and at time servicing is also required.

serial no.5) Grinding machine :This machine gives the wheel caps its proper shape after moulding is done. Stamping machine :Stamping machine refers to the machine which marks the brand name and the company name on the caps as they are manufactured.. 6) Mixer drum :Mixer drum heats and melts the plastic greneaules to turn them to liquid state. its all dimensions are of great importance to be checked. This liquid form of plastic is then further used to make wheel caps. etc. As caps are automobile component. 9) Stripping:Stripping machine refers to that machine which at last stripes the corrugated cartons on the basis of orders and dispatches.. Sticker here does not only refer to MRP sticker but also the batch no. . 7) 8) Sticker machine :Sticker machine is used at the time of packing.

. The mould is of two parts. finishing work is done via small blade and than it is sent to the packing department. “punch & cavity” [the gap between these two forms the article] both these parts are connected with the continous supply of chilled water from outer side which help mould to keep cool and give shape to the article from the hot material injected. Than with the help of “screw barrel” [the gap between barrel and screw thread consist of the material]. After the product is out of the machine. The scrap of the moulding is recycled and used again. Readily colored materials are also available. pushed by the machine pressure and heaters. Than put that ready colored greneauls in the hopper of the moulding machine. “cooling tower” which absorbs the heat of the water and supplies the cold water.MANUFACTURING PROCESS Raw material comes in the form of greneauls having round and rectangular shape and transparent or opaque color. Water supply is cycled by. this material than passes. Heaters are connected from outside of screw barrel into the mould of the article.

PRODUCTION CAPACITY SCHEDULE Mgt.Installed Capacity Number of working days in a month Number of shifts per day Number of hours per shift Production capacity 1604285 pieces p. 25 days 1 8 hours 70% 1123000 pieces p.a. representative 1 General manager 1 Production manager 1 Purchase manager 1 Personnel manager 1 Finance manager 1 Marketing manager 1 Technical supervisor 1 Sales manager 1 Accountant 4 Salesman 4 Peon 2 Watchman 1 Skilled worker 8 Semi skilled worker 8 S T A F F Unskilled worker 5 AND LABOUR DETAILS .a.

FINANCIAL DETAILS .

.

25.00.) 500 Total Cost 40.TOTAL FIXED ASSET LAND Particular Land Sq.000 .) 300 Total Cost 20. feet 8000 Rate (Rs.000 BUILDING Particular Building Sq. feet 6750 Rate (Rs.

000 40.00.000 50.000 5.00.000 80.000 40.000 30.000 50.00. 1 2 2 2 1 2 1 1 1 1 Rate (Rs.000 2.000 2.50.00.000 40.000 Total Cost 90.000 40.PLANT & MACHINERY Name Cooling tower Grinding Machine Injection moulding horizontal Injection moulding vertical Manual moulding Mixer drum Stripping machine Sticker and stamping Machine Dial gauge Die measuring instrument Qty.00.000 1.000 1.00.000 15.000 10.000 5.000 2.000 40.00.) 90.000 .

000 3.00.000 12. 4 4 5 Rate (Rs.000 5.00.000 5.00.30.000 3.000 1.00.00.FURNITURE & FIXTURES Particulars Factory furniture Office furniture Rate 3.00.000 Total Cost 600.000 3.20.00.000 3.000 Amount 3.30.000 1.00.000 1.000 .62.000 21.000 OTHER ASSETS Particular Electrification Installation Charges Computers Telephone Fire equipment Production dies Trolley & other Handling Equipments Pre-operative expenses TOTAL Qty.000 3.00.000 5.000 30.000 1.00.) 600.

00.00.000 6. 2. 4.000 4.TOTAL FIXED ASSETS No.00.000 6.17.00.00.000 1.000 6.000 RAW MATERIALS .30. 7. 1. Telephones & Trolley Fire equipment & Production dies Pre-operative expenses Total fixed assets Amount 40.000 5.62. Particulars Land Building Plant & Machinery Furniture & Fixture Electrification & Installation Charges Computers.09.000 20. 5.000 21. 8. 3.25. 6.

93.Particular Greneauls Rate (Rs.14.334 kg. Amt.108 Working capital .93. Amt. Total 1.) Per Day Qty. Per Year Qty. 576293 4.14.108 72 per 1921.334 4.38.38.3 1.

of person 1 1 1 1 1 1 1 1 1 4 8 8 5 4 2 1 Salary 7.300 6.300 6.800 22.000 16.000 32.000 4.92.84.400 .000 3.600 75.600 75.20.800 5.300 6.000 3.000 10.000 1.600 2.600 69.300 6.000 2.600 1.300 6.88.20.300 1.000 55.600 75.600 75.000 6.600 75.000 1.300 6.000 24.300 6.000 6.700 Per Year 84.200 20.000 2.000 1.500 4.000 10.300 6.000 10.64.000 4.300 6.300 5.700 Per Month 7.300 6.000 75.000 2.STAFF & LABOUR Particulars Manager General manager Production manager Purchase manager Personnel manager Financial manager Technical supervisor Marketing manager Sales manager Accountant Skilled Worker Semi Skilled Worker Unskilled Worker Salesman Peon Watchman No.300 5.

20.000 13. 8.20.40. 11.000 1.00.000 1.97.000 .70. 3. 6.000 60. 9.000 60.30.000 20.20. Particulars Machinery parts & Repairs Postage & Telegram Telephone Expenses Transportation Miscellaneous Expenses Advertisement Insurance Medical Expenses Freight inward Legal Expenses Audit Fees Traveling Expenses Electricity expenses[3 Phase] Fuel Amount 1.900 20.000 24. 10.000 2. 4.400 1.Total 1. 13.000 1. 7.000 60. 14.50.800 OTHER EXPENSES &UTILITIES Sr. 1.00. No. 2.000 3.50. 12.000 2. 5.

1.50.000 12.400 4.61.400 TOTAL WORKING CAPITAL REQUIREMENT Sr.93.000 68. 4. No.000 1.88.108 20.000 25.15. 2. No.000 2.000 53. Water Electricity expenses[office] Packing expenses Other selling expenses Internet expenses Stationery expenses Conveyance expenses Total 1.308 TOTAL CAPITAL INVESTMENT Sr.000 16. 19. 21.800 53.40.50.38.14.17.17. 17. 16. 18. Particular Raw Material Staff & Labour Other Expenses Total Amount 4. 20.83. Particular Amount .

00.00.00.17. 2.000 SOURCES OF FINANCE Sr.50. No.71.00.000 40.000 1.225 1.00. Particular Owners Capital (50%) Borrowed Capital (50%) Amount 75.50.00. 3.00. 1.000 8% 75.50.000 .775 11. Fixed Cost Working Capital (1 month) Cash in Hand Total 1.00.1.000 9.000 INTEREST ON CAPITAL Particular Owner Capital Borrowed Capital Total Loan Interest Amount Rate 75.000 75.09.00.000 Total 1.000 15.000 12% Interest Amount 6. 2.00.

No.000 60.000 15.20.000 1.300 72. Particular Amount .000 20.000 1.500 2.200 83.000 90.29.500 15% 10% 15% 15% 60% 10% 10% 10% 3.06.000 13.40.000 10.25.00.31.000 60.000 6.00.000 12.000 8.DEPRECIATION Particular Building Machinery Furniture & fixtures Measuring instrument & gauge Other Fixed Asset Computers Electrification Telephone Trolley & other equipments Value 20.500 ANNUAL COST OF PRODUCTION Sr.42.000 6.30.02.000 Total Rate of Depreciation Depreciation 10% 2.

120 = Rs.93. 4. No. Raw Material Salaries Other Expenses & utilities Interest on Capital Depreciation Total 4.93.800 53. 2.00. Particular Raw Material Salary (50%) Other Expenses (70%) Amount 4. 2.108 10.22.25.500 15. 3.808 FIXED COST Sr.000 Amount 10. 5. 50.400 15. 1. 1. No. 23.29.50.400 15.000 10.400 37.29.00.13. 4.1. 2. 3. 3.500 5.58 VARIABLE COST Sr.000 10.14. Particular Depreciation Interest on Capital Salary (50%) Other Expenses (30%) Total Fixed Cost per unit = Total Fixed Cost No. of Units = 51.108 20.25.50. 4.17.180 .14.120 11.220 51.90.95.

688 Variable Cost per unit = Total Variable Cost No.Total 4.75 .17 TOTAL COST PER UNIT = Fixed cost per unit + variable cost per unit = 4. 41.62. of Units = 4.58 + 41.62.000 = Rs.17 = 45.40.688 11.40.23.

the business will incur loss. If sales exceed BEP.83 . 49 – Rs. 41. 7.50. the business will earn profit and if it decreases from BEP. 120 + 30. 50.103] × 70 = 43.983}] × 70 = [51. where total revenue and total expenses are equal. It is that point of zero profit.120 ÷ {51. BEP may take.BREAK EVEN ANALYSIS Break-even point is that point of achieving.71.22. • Contribution/unit = Selling price/unit – Variable cost/unit = Rs.17 = Rs.83 • BEP ( in % ) = [Fixed Cost ÷ {Fixed Cost + Profit}] × Capacity Utilization = [51.8% • BEP (units) = Fixed Cost ÷ Contribution per unit = 51. Thus.120 ÷82.50. 50. as the minimum level of production and sales and company must attain in order to be economically viable. 120 ÷ 7.

000 3.000 22.00.000 7. 6.000 7.00.50.50.00.50. 8.57.50.000 Rate 8% 12% Interest 6.000 67.000 7.29.000 .000 5. No.50.00.000 15.000 22.000 Closing Balance 67.359 LOAN REPAYMENT SCHEDULE Sr.000 7.40.000 90.00.50.000 AVERAGE COST OF CAPITAL Particular Owned Capital Borrowed Capital Capital 75.50.000 30.50. = 6.50. 7.000 7. u.000 15.20. Opening Balance 75.00. 3.50.000 75.000 7.50.000 60.) = BEP (units) × Selling price p.80.50.50.00.50.00. 10.000 Installment 7.70.10.50.000 37.50.57.000 8.000 2.00.742 × 49 = Rs.50. 4.000 4.000 52.= 6.000 6.000 45.000 7.000 7.50.000 1.000 Interest 9. 2.000 60.00.00.000 45.50.00.50.00.000 7.50. 5. 1.000 37.000 30.000 7.000 7.000 7.000 9.22.30.000 52.00.742 units • BEP (Rs. 3. 9.60.

59. Cost of Capital = R.71.48 % PROFITABILITY AND PROFITABILITY ANALYSIS Particulars Sales Less : Cost of Production EBIT Less : Interest EBT Less : Tax EAT  Gross Profit Ratio : GPR = Gross Profit ÷ Sales × 100 = 1. 43.82.000 Avg.I.88.30.90.Total 15.665 15 58 682 30.5 % Amount 5.000 4. 90.43.983 . own capital + R.O.665 9.983÷1.00.00. = [EAT ÷Total Capital Invested] × 100 = [30.865 ÷ 5.30.71.335 55.000 46.I. 000 × 100 = 18.O.50.000] × 100 = 20.00.O.00.I of borrowed capital 2 = 8% + 12% 2 = 10% RETURN ON INVESTMENT R.

37.35.108 1.35.97.60.50.000 84.983 ÷ 5.71.30.37. 43.92.000 14. on Building TOTAL FACTORY OVERHEAD (B) Administrative Overheads Year 1 4.93.92.35.50.92.14.350 Year 3 4.60% PROJECTED COST SHEET Particular Raw Material Consumed Purchases Add: Direct Wages Utilities PRIME COST (A) Add: Repairs Manager’s Salary Supervisor’s Salary Watchman’s Wage Fuel Dep.000 4.110 .000 84.21.108 7.000 14.000 75.000 84.82.600 20.92.000 4.085 1.93.49.02.30.000 4.64.06.250 10. on Machine Dep.93.400 2.37.500 11.000 75.100 1. 90.000 2.14.97.108 1.108 7.97.500 Year 2 4.30.000 3.400 2.15.600 20.400 2.600 20.025 9.108 1.000 14.000 75.000 2.50.108 7.000 2. 000 × 100 = 5. Net Profit Ratio : NPR = Net Profit (EAT) ÷ Sales × 100 = 30.14.

00.00.600 55.67.000 3.20.00.000 24.200 20.385 6.000 1.000 2.80.000 72.600 2.000 60.600 3.000 60.86.849 1.000 75.600 75. Legal Exp.200 20. Traveling Exp.520 4. Conveyance Exp.92.800 3.600 2. Salary Sales Mag.000 68.443 4.000 .20. Audit Fees Dep.00.060 10.000 20. Packing Exp.000 2.400 1.000 3.34. Misc.000 16.86.00.000 21.000 75.64.70.600 69.35.000 24. Medical Exp.20.65.600 55. Salary Purchase Mag.83.000 75.69.000 3.77. on Computer Dep. 1.000 75.520 3.83.40.516 6.39.000 11.315 1.000 60.000 60.47.000 16. Salary Accountant Salary Finance Mag.000 75600 55. Advertising Exp.64.836 4.000 68.500 6.315 4.92.000 28.000 60. Stock of Finished goods Less: Cl.00.848 5.600 3.054 5. on Own Capital TOTAL ADMINISTRATIVE OVERHEAD (C) COST OF PRODUCTION (A+B+C) Add: Op.000 16.000 1. Exp.98.00.000 75.20.20. Insurance Exp.45.000 75.000 2.000 22.000 68.000 60.79.36.000 4. Stock of Finished goods COST OF PRODUCTION OF GOODS SOLD Selling & Distribution Overhead Add: Salesman Salary Marketing Mag.83.400 1. Exp.20.600 3.92. on other F.200 20.000 75.40.70.000 24.400 1.00.32.600 2.000 1.600 69.000 60.Add: General Mag.600 69.600 75.000 1.20.84.35.600 75.64.20.908 4.00. Salary Transportation Exp. A.000 60. Salary Personnel Mag.40.20.000 1.000 60. Salary Clerk’s Salary Post & Tele. Int.63. Telephone Exp.985 1.300 1.060 4.20.188 10.45.000 75.

43.463 1.825 16.195 4.48.07.30.931 20.146 66.45.COST OF SALES SALES PROFIT (Sales–COS) 4.27.48.90.000 46.315 1.86.47.352 4.931 7.93.48.200 55.45.145 4.94.235 57.195 5. SALES [A] B.077 36.135 1.52.57.195 4.43.07.000 59.060 10.195 4.86.000 YEAR 3 5.43.30.40.000 48.060 43.86.48.52.000 50.27.060 4.61.983 5.43.047 4.52.10.82.000 YEAR 2 5.74.786 39.10.47.46.61.988 5.55. Direct expense COST OF OPERATION Add: Opening stock Less: closing stock B.865 45.648 5.82.891 Operating Statement PARTICULARARS A.61.04.665 9. TOTAL [B] GROSS PROFIT[A-B] Less: Indirect expense EBIT Less: Interest EBT Less: Tax @ 33.43.66 % EAT YEAR 1 5.315 4.52.540 4.52.36.90.81.012 5.48.52.665 15 58 682 30.71.48.43.95.91.47.00.90.54.90.227 .540 53.195 4.195 10.52.79.598 32.000 48.00.43.03.825 8.07.940 1.06.00.649 5.20.

PROJECTED TRADING AND PROFIT & LOSS ACCOUNT .

45.000 12.000 1.51.000 60.000 60.077 13.20.58.060 20.587 6.000 2. (B) GROSS PROFIT (A-B) (C) Adm.000 12.000 2.000 25.000 7.000 12.000 9.50.40.61.00.000 1.000 2.00.51.786 1.000 4.20.93.43.500 2.00.146 20.50.40.000 2.000 48.93.43.000 13.000 68.92.90.20.315 10.000 1.000 5.92.000 48.90.000 60.61.20.598 1.52.00.060 5.000 3.70.272 4.000 5.58.540 5.OPENING STOCK +CLOSING STOCK Total (A) Manufacturing Expenses Raw materials Labor Utilities Factory expenses Maintenance & Repairs Fuel Water Freight inward TOTAL MANU.000 20.000 6.060 10.03.000 12.47.00.14.00.92.PARTICULARS Sales NET SALES/INCOME .000 3.000 3.52.79.00.06. expenses Selling expenses Packing expenses Medical expenses Salaries Depreciation Maintenance & Repairs Electricity Other selling expense Internet expense Stationery & printing Conveyance expense Audit fees Legal expense Transportation Tax @ 33.000 68.000 4.38.40.865 1.047 5.400 1.00.90.000 60.97.97.20.14.000 60.00.000 2.535 1. EXP.66 % W/o pre-operative expo Insurance Interest 1 5t year 5.48.000 1.000 8.000 2.90.27.10.000 9.500 1.00.38.000 1.540 5.38.195 1.000 20.500 1.20.31.800 8.47.35.25.000 75.587 23.97.40.40.000 60.93.000 1.00.000 1.000 6.92.000 2.00.000 7.000 7.40.000 3.000 24.000 5.40.000 4.50.2555.49.000 2.000 .82.52.587 23.76.000 25.000 7.500 23.108 4.49.00.48.108 7.88.76.195 1.000 1.000 5.800 10.400 1.20. & Mktg.000 60.000 16.86.000 2.000 1.000 1.06.92.10.060 2nd year 3 rd year 5.315 1.29.108 7.000 NIL 5.000 3.48.000 13.36.000 25.43.000 25.500 2.86.20.000 5.14.00.50.00. Misc.45. & Selling Expenses Stamp & Postage duty Telephone Interest on Borrowed Capital Traveling expenses Advg.000 24.195 4.000 24.000 68.27.000 60.76.000 48.43.000 12.000 13.29.000 15 58 682 1.000 8.500 1.06.42.000 3.

NET PROFIT(C-D) 30.71.47.983 32.55.145 .227 39.

40.400 4.00.45.12.77.54.250 13.812 1.000 14.81.000 9.667 Year 1 75.000 Year 3 75.64.000 7.37.47.00.55.720 19.940 52.047 1.77.000 17.315 1.59.370 10.500 4.380 8.37.000 30.85.50.145 1.59.680 6.76.167 1.748 7.84.060 1.070 93.00.22.000 16.86.800 48.55.630 60.00.81.000 14.86.05.39.50.85.437 1.000 5.225 5.30.43.000 10.PROJECTED BALANCE SHEET Liabilities CAPITAL Owned Capital SECURED LOAN Bank Loan CREDITORS NET PROFIT 67.40.400 8.84.47.000 88.80.00.72.028 11.300 90.70.32.000 4.00.00.425 4.983 Year 1 40.200 6.40.225 11.05.000 12.000 5.167 Asset Land Building Machinery Furniture & Fixture Electric Installation Telephone Computer Trolley & other equipments DEBTORS Cash in Hand Closing Stock .000 Year 2 75.71.47.227 39.000 18.613 1.500 15.812 Year 3 40.613 32.80.00.86.812 Year 2 40.

. It may take time to beat the competitor’s product. it might prove to be expensive and might not give desired results.RISK FACTOR Every new business needs to determine its risk factors that the business will face. the required amount of sales will not be achievable and will result in loss. The business would take a longer period to reach breakeven point. Due to heavy advertising. If risk factors are carefully determined then the entrepreneur can take better measures to see that they have limited effect on the business following are some of the risks that the new business will face:- • • • • • • • • The unit will operate in highly competitive market where already other wheel caps manufacturing units have gained important position. The risk of failure of the position.. the production would be low but cost of production may be higher. Non-acceptance from the customer’s side. Initially. Initially.

Name & address of raw material supplier  J. .I.K Industries Pvt.C Pune.D.G. Ltd. Western highway.

G.D. Road.D. Ludhiana – 141 003.T.L. M/S RAVI Industries Udhyognagar. Road – R.C. Baroda.D.C Gondal (Guj) India.C.I.. G.K. Rajkot. MACHINE TOOLS Gokuldham Main Road.I.. Delhi. Phase II. G. Miller Gunj.I. M/S TURN-O-TECH ENGINEERS C/1/276.NAME & ADDRESS OF MACHINERY SUPPLIER • M/S RIAT MACHINE TOOLS P. M/S J. M/S SK MACHINES TOOLS National highway G. • • • • .

In this method. . The Depreciation is being calculated according to Reducing Balance Method.DISCLOSURE OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies used in this report is Double Entry System and all the effect of income and expenditure is given according to Double Entry System. the depreciation changes according to the value of the asset remain in the last year. The asset is totally written off slowly and gradually.

CONCLUSION In the product project report on Torque Industries. At last. I have discussed all financial data and other relevant information. . the future of this product is very bright. The market of Osim Industries is expanding its demand for the product day by day. it is assumed that it would be the perfect product to be manufactured in today’s environment. With the expectation of high profitability and good market. The return in this business is also satisfactory. it can be said that.