GUIDED BY:DECLARATION

I, the undersigned Jay. R. Parsana 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.

Place: - Rajkot Date:-

Jay R. Parsana

PREFACE
I have a great pleasure in the presentation of this report on “BALL BEARING” which is the practical study in TYBBA of Saurashtra University. After passing 12th standard, I opted for BBA, because I found a greater scope to learn management techniques through this course and having studied since past two years in FY and SY, my task was rather fulfilled. This year of my TYBBA has given me an opportunity to plan a project for myself so that I can setup a real plant in near future. Thus the project report presented by me helps me to develop entrepreneurship skills.

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ACKNOWLEDGEMENT
It is taking the responsibility regarding the accomplishment of project and showing that I am happy to submit this report along with thanking all those persons who are involved in the preparation of the project. I would like to thank our project guide Dr. Swati Doshi of Christ College, Rajkot who helped me to get the correct information about the project to be undertaken.

Jay R. Parsana

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INDEX
SR. NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 PARTICULARS PAGE.NO

Introduction Project at Glance Partners Background Organizational Structure Justification of Location Product Details Market Potential Raw Materials Machines Manufacturing Process Production Capacity Schedule Staff and Labour Details Financial Details Cost of Production Total Working Capital Requirement Total Project Fund Sources of Finance Interest on Borrowed Capital Depreciation

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20 21 22 23 24 25 26 27 28 29 Annual Cost of Production Sales Forecast Break Even Analysis Cost of Capital Return on Investment Profitability Analysis Projected Operating Statement Projected Cost Sheet Projected Balance Sheet Particulars Consumed of Raw Material 30 31 32 33 34 35 36 37 38 Particulars of Finished Goods Schedule for Fixed Assets Schedule for Factory Overhead Schedule for Selling and Administrative Overhead Risk Factors Name and Address of Raw Material Suppliers Name and Address of Machineries Supplier Disclosure of Significant Accounting Policy Conclusion 6 .

There are many big companies whose main dealing is in Iron and Steel. So there are many industries involved in the product where there is use of Iron and Steel. Earlier ball bearings where exported. Basic reason to choose ball bearing is that it is a product which is widely used in all type of equipment such as machineries. In India usage of ball bearing is very high. etc. But now there are few companies which are producing ball bearing but due to there monopoly they are charging very high prices and the quality of some bearing are not so much good. In India there are many company production Iron and Steel. automobiles. Ball bearing is a product which is used in every equipment where wheel is affixed to make wheel working freely ball bearing is used.INTRODUCTION The project work presented in this report refers to setting up of a manufacturing unit engaged in ball bearing in future so it is necessary to know some detailed information about them. 7 .

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Factory Location G-777. 675 for 120 mm diameter Owner’s Capital 60% Rs 81 lakhs Borrowed Capital 40% Rs 54 lakhs from Nagrik Shakari Bank Ltd.Rajkot Gujarat – India. GIDC Metoda. Lodhika.Rajkot Gujarat – India. the project is viable. Form of Organization Sole Proprietorship Name of Promoter Name of Product Name of Brand Size of Unit SSI Registration No.. 9. GIDC Metoda. Dist. Lodhika.. 9 .PROJECT AT GLANCE Name of Unit Registered Office JP Bearings G-777.69% Means of Finance Cost of Capital Return on Investment Since return on investment is greater than cost of capital. Dist.8% 15. Cost of Product Jay Ravjibhai Parsana Ball Bearing JP Small Scale Industries 10007 Rs.

Rajkot: . GIDC.360 004. Nr. Gujarat – India. Lodhika. ‘JP Bearing’ G-777.PARTNERS BACKGROUND Name Age Residential Address Jay Ravjibhai Parsana 20 years ‘Jay’ 9. Dist – Rajkot. Indraparsthnager. Panchvati Soc. Metoda. Main Road. Under Graduate BBA Chairman 60% of Total Capital Registered Office Address Qualification Role in Unit Financial Contribution 10 .

ORGANIZATIONAL STRUCTURE Chairman Manager Supervisor Salesman Skilled Workers Watchman Semi Skilled Workers Unskilled Worker Accountant Peon / Clerk 11 .

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JUSTIFICATION OF LOCATION It is very important for any firm to decide that where the plant should be established at the time of selection of establishment place. We have to take into consideration many points. Moreover there other environmental considerations and infrastructure facilities too. Here price of land is reasonable. This unit is to be located at Rajkot district at Metoda GIDC which is an industrial area. It involves cost which affects the overall profitability of a unit. Following incentives and advantages justify the location at Metoda:• Easy availability of raw materials • Labour easily available • Long term subsidy • Nearness to market • Cheap labour 13 .

Especially for manufacturing of ball bearing it has to be passed with various processes. Our unit manufactured ball bearing from size 20 mm to 300 mm diameters. These ball bearings are to be sold on our own brand name of “JP”. It has to go through various machinery and after that ball bearing is manufactured. 14 .PRODUCT DETAILS The bearing. It is manufactured according to order given. basic product of the unit is ball It is a product which is used in day to in every industrial machines. day life mobiles. Ball bearing is manufactured by special steel called SAE – 52100. auto etc.

This shows that ball bearing have a great market potential. There are many companies which are engaged in producing ball bearing. Galaxy Bearing Ltd. etc. There are many companies which are manufacturing ball bearing but they are very costly and some times there is not proper quality.MARKET POTENTIAL The popularity of ball bearing is very much because ball bearing is used at every place where there is revolving wheel so the demand of ball bearing is very much.. Among this popular companies are Kasuma Eng. Ltd. (I) Pvt. So it will be beneficiary to enter the market of ball bearing and sell the same. 15 .

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we need following machines for producing ball bearings:- 1) 2) 3) Grinding Machine:This machine is used for grinding the upper surface of ball bearing ring as soon as it is forged. Internal Grinding Machine:This machine is used for grinding inside surface of ball bearing ring. Horizontal Grinding Machine:- 4) 17 . Cylindrical Grinding Machine:This machine is used for making proper grinding the inner surface of ball bearing ring so that it is polished and rough grinding of internal grinding machine can be made proper.MACHINES Machines play a very important role in any manufacturing unit. accurate and qualitative. Machines make the work of the workers easier and even with machines we get faster work done for the unit to be set up. The same standard of quality can be achieved in the product through the use of machines. Machines make the work easy. simpler. If this is done then machines will last for a longer duration. Machines give a lot of work if handled properly basically machines require regular repairs and maintenance.

5) Annealing Machine:This machine is used make annealing of bearing ring which is forged. micro meter. Through this machine the bearing ring forged is uneven or not in proper round shape can be made proper by this machine.This machine is used for making proper grinding the upper surface of ball bearing ring so that it is polished and rough grinding of upper surface grinding machine can be made proper. 8) There are also other machines which are used for checking the accuracy and quality of ball bearing and this machines are onerier. 6) Lathe Machine:This machine is used for turning the bearing ring which is not accurate in size when it comes from forging. etc. 7)Press machine for assembling cage into bearing ring and assembling machine for assembling ball into cage. 18 .

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When forging is purchased form out sources all the dimensions of metal are checked and then this forging is sending for other process. This step is always conducted after forging. Then bearing are heated to check the hardness. The company purchases this forging from out sources. • Annealing and Turning It is the second step in the process of manufacturing bearing. After that turning is done so that all the dimensions of bearing ring can be made of appropriate size for this lathe machine is used. The process of annealing is used for making ring of ball bearing straight which is not proper in shape. • Cage Component First the dye of the cage is prepared and then the cage is manufactured but in our company it is directly purchased from out sources.MANUFACTURING PROCESS The main raw material used manufacturing of ball bearing is as follow:for • Forging The first and foremost step for the production of bearing is forging of the steel bar for the exact size of the bearing ring. 20 .

After all this procedure it is packed into bristle pack. Horizontal grinding machine is used to make out surface plain by grinding it up to appropriate size. The other machine is used to fix ball inside this cage. Cylindrical grinding machine is used to make grinding inner surface of bearing. 21 . After all this procedure there are few gazette which are used for checking quality and accurate size of the bearing.• Grinding and Polishing For grinding and polishing of ball bearing various machines are used so that it looks good. These machines are horizontal and cylindrical grinding machines. • Assembling and Packing Press machine is used for assembling cage inside the ring of bearing.

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PRODUCTION CAPACITY SCHEDULE Installed capacity Number of working days in a week Number of shift per day Number of hours per shifts Production capacity per month 70% 6 days 1 8 hours 12000 units of ball bearing STAFF AND LABOUR Factory staff Skilled workers Semi skilled workers Unskilled workers Administrati ve staff Manager Supervisor Clerk Accountant Salesman Watchman 3 5 7 1 2 1 1 1 1 23 .

00.00.00.000 Total Cost 1.000 1.000 30.000 25.30.000 24 .0 00 65. 1 1 1 1 4 2 2 Rate 1.) 300 Total Cost 22. 2300 Rate(Rs.50.0 00 90.000 1.10000 Building Particulars Building Sq.000 30.00.feet 7510 Rate(Rs.000 90.0 00 2.000 10.000 1.000 Plant & Machinery Name Grinding machine Internal Grinding machine Cylindrical Grinding machine Annealing machine Lathe machine Horizontal Grinding machine Press machine for assembling bearing Other quality checking machine --Qty .) 700 Total Cost 16.000 2.mt s.Fixed Asset s Land Particulars Land Sq.00.50.000 2.53.

000 40.000 40. 5.00.10000 22.000 AMOUNT 16.000 40. 1. Rate 1.000 Total Cost 1.00.000 50. 2.00 0 50.000 1.000 50.000 25 .00.000 40.000 Total Fixed Assets NO. PARTICULAR Land (2300sq mts @700) Building (7510 sq feet @ 300} Boundary Wall & Gate Plant & Machinery Furniture & Fixtures Electrification Charges & Installation 50.Other Assets Particulars Furniture Fixtures Electrification Installation Charges Computer Telephone Production dyes Boundary Gate Trolly and other handling equipment wall & 10.53. 6.000 5. 3.000 10.000 1 2 1 50. 4.000 10.00.000 50.000 10.000 & Qty.

Computer.00.000 26 .7.000 51. production dyes and trolly Total 1. Telephones. OF PERSO N 1 SALARY 5000 PER MONTH 5000 PER YEAR 60.63.000 COST OF PRODUCTION RAW MATERIALS PARTICULAR PER PER MONTH AMT (RS) PER YEAR QTY AMT (RS) 840000 00 720000 518400 0 144000 14400 0 75040 00 90048 000 UNIT QTY (RS) FORGED RING OF SAE 52100 CAGE BALLS BOX FOR PACKING 70/5/3/1/kg 1000 0 units 1200 0 1440 00 1200 0 TOTAL kg 70000 12000 00 0 60000 14400 0 43200 0 17280 00 12000 STAFF AND LABOUR paticulars MANAGER NO.

000 81.000 5.000 5000 60.000 2000 24.000 5000 60.00.000 27 .50.000 1.SUPERVISOR SKILLED WORKER SEMI SKILLED WORKER UNSKILLED WORKER WATCH MAN ACCOUNTANT SALES MAN CLERK TOTAL 2 3 5 7 1 1 1 1 3000 3500 3000 2500 2000 5000 5000 2000 6000 72.000 3.000 68.000 2000 24.000 15.00.600 0 UTILITIES PARTICULAR WATER FUEL ELECTRICITY TOTAL PER YEAR 50.000 17.26.10.000 10.000 1.500 2.500 1.80.

37.000 36.00.000 1000 20.16.700 TOTAL WORKING CAPITAL REQUIREMENT SR.000 35.000 50.700 50.N O 1 2 3 4 5 6 7 8 9 10 11 12 PARTICULAR REPAIR AND MAINTENANCE POSTAGE AND TELEGRAM TELEPHONE EXPENSES TRANSPORTATION MISCELLENEOUS EXPENSES ADVERTISEMENT INSURANCE MEDICAL EXPENSES PROFESSIONAL TAX LEGAL EXPENSES AUDIT FEES TRAVELLING EXP TOTAL AMOUNT 75.000 28 .OTHER EXPENSES SR.00.000 25.00 0 8.000 80.000 50. NO 1 2 3 PARTICULARS RAW MATERIALS STAFF AND LABOUR UTILITIES AMOUNT 9.000 25.48.000 5.000 90.000 5.

63.35.525 1. NO 1 2 3 PARTICULAR FIXED COST WORKING CAPITAL ( 1 MONTH) CASH IN HAND TOTAL AMOUNT 51.37.01.58.4 OTHER EXPENSES TOTAL 5.78.700 9.7 00 TOTAL CAPITAL INVESTMENT SR.00.19.475 6.000 76.000 SOURCES OF FINANCE 29 .

000 INTEREST ON CAPITAL SR.00.00.00.00 0 54.000 13.29.00.000 2 11% 5.94.00 0 54. NO 1 DETAILS OWNER’ CAPITAL JAY R.0 00 30 .35.23.00.35. PARSANA (60%) BORROWED CAPITAL NAGRIK SHAKARI BANK LTD (40%) TOTAL LOAN AMT 81. 000 INTERES T RATE 9% INTERST AMOUNT 7. @ 11% interest rate TOTAL AMOUNT 81.00.00 1.00 0 1.SR NO. 1 2 PARTICULAR OWNERSHIP CAPITAL (60%) BORROWED CAPITAL (40%) Loan borrowed form Nagrik Shakari Bank Ltd.

000 16.00 0 10.700 13.60.48. NO 1 2 3 4 PARTICULAR BUILDING MACHINARY OTHER FIXED ASSET COMPUTER TOTAL VALUE 22.00 0 2.000 39.00.16.300 9.23.80.00.000 RATE OF DEPRICIATIO N 10% 20% 15% 40% DEPRICIATIO N 2.000 8.53.DEPRECIATION SR.000 40.25.000 4.300 2.80.37.05.00 0 5.000 4.00.000 5.37.00.300 ANNUAL COST OF PRODUCTION SR.0 00 31 . NO 1 2 3 4 5 6 PARTICULAR RAW MATERIAL UTILITY SALARIES OTHER EXPENSES INTEREST ON CAPITAL DEPRECIATION TOTAL AMOUNT 9.

390 9.000 3.60.000 7.000 1.90.300 13.390 32 .000 units = Rs 17.80.000 1.60. 4.15.00.000 1. 3.000 4.310 25.SALES FORECAST YEAR 1 2 3 4 5 UNITS PER ANNUM 1.80. 44.92.11.82.00.80.00.52 per unit VARIABLE COST SR.22.000 12.23.26. NO.000 2. PARTICULARS Depreciation Interest on Capital Salary (50%) Other exp & utilities (30%) TOTAL AMOUNT 4.11. 1.000 RATE PER UNIT 675 675 675 680 680 SALES (RS) 9.00.08. 2.00.000 FIXED COST SR.40.00.08.48000 4.45.000 10.000 12. NO.610 Fixed Cost per unit = Total Fixed Cost / number of units = Rs 25.00. 22. 1 2 3 PARTICULARS Raw Material Salaries (50%) Other exp and utilities TOTAL AMOUNT 9.610 / 1.000 13.

11.610/41. as the minimum level of production and sales and company must attain in order to be economically viable. 82.P.18. BEP may take.C./unit-V.E.21 = Rs 41.610+21. (Rs.05% B. (units) = Fixed Cost/ (Contribution/unit) = 25.22.21 per unit BREAK EVEN ANALYSIS Break-even point is that point of achieving.Variable Cost per unit = Total Variable Cost / number of units = Rs 9.79 = 60.E.22./unit = Rs 675 – 633.P. 44. Thus.22.000 unit = Rs 633. where total revenue and total expenses are equal. If the sales exceed BEP the business will earn profit and if it decreases from BEP the business will incur loss.390 / 1. Contribution/unit = S.000) X 70 = 38.) 33 . (%) = {Fixed Cost / (Fixed Cost + Profit)} X Capacity utilization = 5. It is the point of zero profit.79 B.364 ball bearing B.E.P.610(25.P.

400 2.29.60.8% RETURN ON INVESTMENT ROI = EBIT / Cost of Capital = 21.56.000 X 100 = 9.18. BAL.00.18.000 13.000 32.35.60.40.00.000 5.000 ----INTERST 5.23.000 RATE 9% 11% Total INTEREST 7.40.P.00 0 Average Cost Of Capital = Interest / Capital X 100 = 13.800 59.20.000 37.000 10.20.40.000 43.00.N O 1 2 PARTICULAR Owned Capital Borrowed Capital CAPITAL 81.80.20.80.40. INSTALLMENT 54.000 5.34.000 48.364 x675 = Rs.40.000 5.000 5.000 54.000 5.400 AVERAGE COST OF CAPITAL SR.= B.23.000 27.37.000 21.80.40. x S.000 / 1.000 / 1.000 43.745.15.40.000 32.000 CL.000 2.E.94.97.000 5.78.000 5.40.000 21.69% 34 .40.35./unit = 60.600 4.20.000 5.00.00.80.P.000 10.40.40.000 5. 48.600 1.000 5.700 LOAN REPAYMENT SCHEDULE YEAR 1 2 3 4 5 6 7 8 9 10 O/P BAL.000 5.00.000 5.00.200 1.40.000 37.800 3.60.000 5.000 5.94.000 16.75.000 = 15.60.000 16.200 4.40.000 27.40.40.

88.45.500 / 9.000 9.000 1.500 GROSS PROFIT RATIO GPR = Gross Profit / Sales X 100 = 61.36.23.PROFITABILITY AND PROFITABILITY ANALYSIS PARTICULAR Sales Less Cost of Production EBIT Less Interest EBT Less Tax EAT AMOUNT 9.000 / 9.000 21.95.23.000 X 100 = 6.000 13.06.18.82.00.64% 35 .500 6.49% NET PROFIT RATIO NPR = Net Profit / Sales X 100 = 6.000 7.06.000 X 100 = 0.00.45.45.00.

63. 36 .000 @ 20% on 1.000 NIL 8.000 1.72.000 Total Taxable 2.00.41.000 50.00.00.600 Amt.22.000 1.000 X 100 = 5.00.000 / 9.22.72.000 5000 @ 10% on 50.22.000 7.FIXED ASSET TURNOVER RATIO FATR = Total Fixed Asset / Sales X 100 = 51.46% TAX SLAB PATICULAR EBT Less Less Less AMOUNT RATE AND TAX AMT 9.000 2.600 @ 30 % on 7.45.16.000 8.000 20.

68.000 5.814 6.00.57.000 5.00.18.00.000 46.94.700 2.000 6.12.014 4.16.56.000 10.29.000 5.000 ------------27.000 YEAR 2 10.000 27.000 5.000 13.715 13.000 40.36.91.50.472 2.000 --------27. stock of finished goods TOTAL COO GROSS PROFIT (Sales – Cost of Operation) INDIRECT EXPENSES Factory expenses Administrative expenses Selling and Distribution exp Total Indirect Expenses EBIT: YEAR 1 9.77.39.45.000 5. stock of raw material ADD: Op.085 2.78.000 11.80.28.00.94.00.76.000 61.16. Stock of raw material LESS: Cl.67.83.000 27.40.300 4.15.16.000 10.000 YEAR 3 12.00.80.729 4.00.62.000 5.63.000 9.64.000 8.000 --------27.00.48.65.630 37 .000 6.21.22.00.000 11.12.PROJECTED OPERATING STATEMENT PARTICULAR Sales COST OF OPERATION Raw material Utilities Labour ADD: Op.429 14.00. stock of finished goods LESS: Cl.

25.25.000 2.75.29.0 00 75.751 19.56.000 5.000 72.810 31.000 72.17.186 5.300 6.64.714 60. 000 96.00.89.68.00.300 YEAR 2 10.000 85.170 7.000 24.0 00 --5.000 5.800 26.000 32.57.25.00.429 60.600 20.64.200 26.000 24.34.80.014 YEAR 3 11.10.000 24. 000 --5.000 60.14.000 24.370 4.16. Stock Add: Direct wages Utilities PRIME COST (A) Factory Cost Add: Repairs Manager’s Salary Supervisor’s Salary Watchman’s Wage Depreciation on Machines Depreciation on Building TOTAL FACTORY COST (B) Administrative Expenses Add: Accountant’s Salary Clerk’s Salary Postage and Telegram Exp.300 6.300 6.00.06.50.24.77.000 11.000 24.76.27.48.776 15.000 24.(Gross Profit – Indirect exp) LESS: Interest on Borrowed Capital EBT: LESS: TAX EAT: 48.12. YEAR 1 9.39.000 12.18.000 25.000 9.200 30.143 38 .00.72.67.16.78 .000 42.94.92.000 72.000 60.586 5.16.000 2.000 2.000 5.000 10.000 2.77.56.00 0 --5.571 60.000 2.729 60.000 28.32.000 2.000 5.419 PROJECTED COST SHEET PARTICULAR Raw Material Consumed Purchase Less: Cl.

201 27. Stock of Finished Goods COST OF PRODUCTION OF GOODS SOLD 35.943 16.000 9.73.00. 201 39 .000 28.099 27.000 10.000 45. stock of Finished Goods Less: Cl.0 00 ----27.15.000 20.000 27.87.58. Medical Exp.Telephone Exp.000 39.000 25.000 27.00.472 5 10.000 11.28.143 22.700 9.000 11.00.23. Audit Fees Depreciation on Computer Depreciation on Other FA Interest on Owned Capital TOTAL ADMINISTRATIVE EXPENSES (C) COST OF PRODUCTION (A+B+C) Add: Op.000 39.099 11.29.000 7.000 32.000 7.000 90.58.186 8.857 41.286 25.50.0 00 40.08 12.143 1.000 7.36 .01.36 .29.286 1.71.000 36.02.00.000 11.87.91. Expenses Insurance Exp.143 1. Professional Tax Legal Exp.857 57.73.00.000 39.700 16.71.714 64.571 1. Mis.714 47.000 50.29.000 1.

000 24.000 40.814 10.000 57.02.90.61.000 9.286 1.00.35.186 60.000 80.000 60.000 18.000 64. COST OF SALES SALES PROFIT 60.45.80.11.286 11.000 50.64.15.630 12.00.000 9.000 50.370 PROJECTED TRADING ACCOUNT YEAR 1 40 .04.143 91.00. Advertising exp.857 64.429 57.01.89.Selling and Distribution Expenses Add: Salesman’s Salary Transportation exp.143 10. Traveling exp.98.

0 00 27.000 11.07.00.0 00 27.48.00. AMT. ----9.000 61.000 10. 000 PARTICULARS By Sales By Closing Stock CR.00.12. 000 PARTICULARS By Sales By Closing Stock CR.00.000 46. PARTICULARS To Opening stock To Purchase To Direct Wages To Utilities To Gross Profit TOTAL AMT.00.15.16. 000 TOTAL 12.00.00.72.76. PARTICULARS To Opening stock To Purchase To Direct Wages To Utilities To Gross Profit TOTAL CR.000 41 .00.42.00.07. 000 YEAR 2 DR.80. 000 PARTICULARS By Sales By Closing Stock AMT.16.0 00 5.00 0 TOTAL 9.0 00 5.0 00 27.0 00 5.28.16.00.000 5.80. 27.00.36. 10.000 40. 27.00.29.000 12. 000 TOTAL 11.00.00.000 YEAR 3 DR. 12.45.42. 9.000 5.72.000 5.00.DR.22. AMT. AMT.00.000 11.50.57. PARTICULARS To Opening stock To Purchase To Direct Wages To Utilities To Gross Profit TOTAL AMT.00 0 9.

00 0 TOTAL 61. 61.000 To Traveling exp.36. PARTICULARS AMT.000 To Medical exp. 50.000 To Depreciation To Int.PROJECTED PROFIT AND LOSS ACCOUNT YEAR 1 DR.000 To Transportation 50. Exp.000 To Mis.000 Expenditure 80.700 Tax 50.000 To Professional 36. 25.00.80. AMT.000 To Advertising 90. 25.20 0 To Income Tax To Net Profit TOTAL 30. 20.000 To Telephone exp.000 To Postage and Tele.000 exp. To Audit Fees 3.80 0 61. 4.36.300 To Salaries to employees 5.94.36. 75.17.0 00 PARTICULARS By Gross Profit CR.06. To Repairs exp.000 To Legal Exp.0 00 42 . on Borrowed Capital 12.000 To Insurance 1. 35.

0 00 CR. PARTICULARS By Gross Profit AMT.300 To Salaries to employees 5. 4.22.80.77.714 To Telephone exp.0 00 43 .943 Tax 57. 40. To Repairs exp.22.429 To Advertising 1. 57.000 To Traveling exp.000 To Transportation 57.857 exp.02. 28. 40. 28. 85.776 Borrowed Capital To Income Tax To Net Profit TOTAL 15. Exp.143 To Medical exp.857 To Professional 41. 22.34.143 To Insurance 1. on 5.143 To Legal Exp. To Audit Fees 3.00 0 TOTAL 40.143 To Mis.22.81 0 40. PARTICULARS AMT.600 To Depreciation To Int.YEAR 2 DR.571 Expenditure 91.714 To Postage and Tele.14.00.

32.28.714 exp.56.186 Tax 64. 64. 96.857 To Advertising 1.429 To Postage and Tele.0 00 44 .0 00 CR.286 To Legal Exp.143 Expenditure 1.714 To Professional 47.41 9 46.15.YEAR 3 DR. PARTICULARS By Gross Profit AMT. To Audit Fees 3.286 To Mis.75. To Repairs exp.72.200 To Depreciation To Int. 45.143 To Telephone exp.00. PARTICULARS AMT.000 To Traveling exp.286 To Insurance 1.286 To Medical exp. Exp.02.28.32.000 To Transportation 64.00 0 TOTAL 46. 4.300 To Salaries to employees 4. 46. 32. 25.28. on 7.751 Borrowed Capital To Income Tax To Net Profit TOTAL 19.

140 43.919 10.00. Ltd TOTAL 54.45.PROJECTED BALANCE SHEET LIABILITIES CAPITAL Owned Capital SECURED LOAN Nagrik Shakari Bank Ltd Net Profit Less: Drawings CREDITORS Steel Trade Ltd TISCO Ltd Steel age India Pvt.04.803 61.20.32.9 23 45 .800 30.08.00.490 5.000 YEAR 3 81.656 -----48.800 3.000 30.000 YEAR 2 81.14.000 1.00.810 15.616 4.000 19.000 15.00.419 19.14.50.72.42.45.41.810 8.06.620 3.13.60.90.06.17.32.514 YEAR 1 81.12.419 6.2 72 1.5 63 1.42.

48.892 7.500 7.121 7.01.56.612 ----50. Ltd Cash at Bank Cash in Hand Closing Stock TOTAL 11.54.76.500 ----Troll and other eqp.000 55.16.500 35.000 16.00.214 6.27.90.58.500 Computer 8.000 22.000 --------Boundary.620 5.5 63 1.15.500 35.000 Furniture & Fixtures 85.49. YEAR 2 QTY AMT.406 51.42.000 YEAR 1 YEAR 2 YEAR 3 Electric Installation 42.51.24.619 11.42. DEBTORS Shreenathji Industries ShreeKrishna Enterprise Ram & Ram Pvt.100 Machinery 8.53.00.86.00.321 5.000 34.77.45.000 9.10.29.000 5. stock --------.430 27.150 27.429 Less: Cl stock -------------0 ----Production Dyes 8.12.00 2.2 72 1.10.90.500 QTY AMT QTY AMT QTY AMT Telephone 8.000 27. Walls 42.12.000 3.80.032 10.500 27.000 4.9 23 PARTICULARS OF RAW MATERIAL CONSUMED PARTICULARS OF FINISHED GOODS Particulars YEAR 1 QTY AMT.50.000 16.700 21.857 11.528 -----31.02.000 Building 23.000 70.59.YEAR 1 YEAR 2 YEAR 3 Land 16.03.26.713 1.10.400 10.00.45.500 Add: . Pvt.000 --------.00.000 Purchase 17.000 ----5.-----Op.000 ASSETS 1. 46 .400 18.000 27. Kkassuma Eng.28.00.000 10.Gates 28. YEAR 3 QTY AMT.08.000 6.000 2.000 ----10.500 7.00. Ltd.

72.000 12.000 27.000 ------9.00 0 27. +add.000 4.45.00.000 27.000 27.60.00 0 9.000 1.00 0 1. Stock SCHEDULE FOR WRITTEN DOWN VALUE OF FIXED ASSETS PARTICULAR Gross Block Op.15.00 0 4. During year Net Block W.000 Cl.000 4. Dep.00 0 10.00.000 12.V 47 .00.Op .15.000 10.00.000 1.00.80.00.00.80.00.00 0 1.40.00 0 1.44.00 0 27. balance Add: good manu.00. Less: Sales ----1.00 0 4.00 0 4.80.60.00.D.00. Total Depreciation Tot al acc u.80.

00.27.00 0 SCHEDULES FOR FACTORY OVERHEADS PARTICULARS Repairs Manager’s Salary Supervisor’s Salary Watchman’s Salary Depreciation on Machinery AMOUNT 75.000 10.00.500 16.Land Building Machinery Furniture & Fixture Electric installation charges Telephone ----Computer 50.000 34.53.000 50.000 ----1.0 00 1.7 00 8.53.000 48 .500 8.0 00 10.000 40.000 10.000 --------2.3 00 16.00 0 16.10.000 ----50.000 7.00.500 42. wall & gates Production Dyes Trolley and other eqp 10.00.00.25.0 00 ----15.000 2.00.000 7.10.0 00 10.500 6.000 50.0 00 22.500 10.500 8.000 24.500 42.00 0 ------------2.000 Boundary.00.10.0 00 1.0 00 23.000 24.0 00 22.000 ----40.000 1.000 60.000 ----40.500 16.000 40.000 86.000 72.

000 1.300 SCHEDULES FOR AMINISTRATIVE OVERHEADS PARTICULARS Accountant’s Salary Clerk’s Salary Postage & Telegram Exp. Mis.000 20.000 7.000 49 . Audit Fees Depreciation on Computer Depreciation on Other Fixed Asset Interest on Owned Capital TOTAL AMOUNT 60.000 25. Advertising Exp.40.000 11.Depreciation on Building FACTORY COST 2.56.700 16.000 35. TOTAL AMOUNT 60. Expenditures Insurance Exp.000 80.300 6. Medical Exp.000 50.000 24.50.000 39. Telephone Exp.70 0 SCHEDULES FOR SELLING OVERHEADS PARTICULAR Salesman’s Salary Transportation Exp.000 36.000 50. Traveling Exp.25.29.000 50.000 25.000 90.000 2. Professional Tax Legal Exp.

• Unacceptance from the customer’s side.RISK FACTORS Every new business needs to determine its risk factors that the business will face. 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 ball bearing manufacturing units have gained important position. • Heavy advertising may prove to be expensive and might not give desired results. • Initially production would be low but cost of production may be higher. • The business would take a longer period to reach break even point. • It may take time to beat the competitor’s product. • The risk of failure of the project. • Negative attitude of customers. • Initially the required amount of sales will not be achievable and will result in loss. 50 .

Opp. 210. • M/S S. ICICI Bank. LTD. Navrangpura. Dalal Street (east). • STEEL INDIA PVT. • M/S MARSH MACHINERY LTD. LTD.NAME AND ADDRESS OF RAW MATERIAL SUPPLIER • STEEL TRADE PVT. LTD Ahmedabad bank chambers. Jamshedpur. PVT. M.P. Road. NAME AND ADDRESS OF MACHINARY SUPPLIER • M/S ROCKET ENG. Rajkot.G. 210. Road. New Delhi. Conar Palace. Ahmedabad. Cross Road. 51 . Near. C. Aji Vasahat. • TISCO LTD. Mumbai.G. New Delhi. TOOLS 15.

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 give according to Double Entry system. When the last of amount is less then depreciation in significant year then that amount is considered as depreciation amount in that last year. In this method depreciation remains same year until it is write off. The Depreciation is being calculated according to Straight Line Method. 52 .

CONCLUSION In the product project report on JP BEARING. At last it can be said that future of this product is very bright. I have discussed all financial data and other relevant information. With the expectation of high profitability and good completing of high is assumed that it would be the perfect product to be manufactured in today's environment. The return in this business is also satisfactory. The market of JP BEARING is expanding its demand for the product is increasing day by day. 53 .

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