Professional Documents
Culture Documents
GOLD RINGS
PREPARED BY KAMAL V. RANDHANPURA COLLEGE R.P. BHALODIA COLLEGE ACADEMIC YEAR 2007-2008 CLASS TYBBA ROLL NO. 33 GUIDED BY MR. JAY PATEL
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ACKNOWLEDGEMENT
I feel great pleasure in submitting this report to you. Product project Report is crucial function, which must be done by every small-scale entrepreneur before he/she starts production. I am very much thankful to our trusty & my Prof. Mr. Jay Patel for giving me necessary guidance.
Date:
Students Sign
Place: RAJKOT
(Kamal V. Radhanpura)
PREFACE
Indian management scenario seemed to have mix hopes at the end of 2000. SSI is the pillars of Indian Economy. Most of the Indian Business firms are small-scale firms. But, due to the success of globalization & liberalization people are less interested in such business. The main reason is they do not have expert management skills & techniques. So there is an urgent need for substituting traditional management by modern & scientific management. I am extremely happy to submit this project report for S.S.I under the prescribed syllabus of Saurashtra University. It is the best way to develop entrepreneurial skills in students. In this regard, I have prepared my project report on 5Gram GOLD RING MANUFACTURING. I have got a chance to acquire practical knowledge at the time of gathering the information.
INDEX
NO.
1. 2. 3. 4. 5. 6. 7. 8.
PARTICULARS
Project At A Glance Justification Of Location Product Uses Market Analysis Market Demand & Potential Manufacturing Process Manufacturing Capacity Schedule Pollution Control
Page No.
6 7 11 12 12 13 16 17
PROJECT AT A GLANCE
: 203, Aabhushan Complex, Second Floor, Soni Bazar, Rajkot 360001 : : 5 Gram GOLD RINGS 203, Aabhushan Complex, Second Floor, Soni Bazar, Rajkot 360001. Off:- 91-0281-2238150 Kamal V. Radhanpura Syndicate Bank
: : :
JUSTIFICATION OF LOCATION
Location of any industry play a dominant role in success or failure of the co., as the location of the plant has direct influence on the cost of production as well as on effectiveness of marketing. And it is also a most important decision because, once plant location is chosen, it cant be changed in the near future. So, mistake in location selection cant be corrected without heavy losses. The selection of location bears a lot of a factory affects it. The selected location of the GOLD CAST PVT.LTD. Is situated at Aabhushan Chamber, Soni Bazaar, Rajkot. So, it is best suitable to the production of any product. The GOLD CAST PVT.LTD. Enjoys following benefits, as such location has been selected.
NO.
1. 2. 3. 4. 5.
PARTICULARS
Availability of Raw Materials Promixity To Market Communication Labor Supply Power Supply
Page No.
9 9 10 10 10
PROMIXITY TO MARKET
As, product is for the market, it is beneficial to have nearness to the market, In this type of business producer has not to find the market but market finds the producer, as the producer are few. As the company is manufacturer of Gold Ornaments, it should be beneficial as the labour as well as other manufacturer or the assembling people are more in the market, so they can come there any time and can come to office. More over if the factory is far from the office then the transportation becomes too Risky for transportation of Raw Gold to factory and after that finished product to the Office. The markets of Gold ornaments are Calcutta, Delhi, Mumbai, Jaipur, Banglore, Ahmadabad and Madras. Yet. Company has no problem as supplier, wholesalers and exporters of jewellery ornaments are mainly situated at Rajkot, Ahmedabad and Mumbai.
COMMUNICATION
Every business firm requires every type of business information in order to know position of labour, market, raw material and new trends in market. All such communication facilities are available in Rajkot. As the factory and office are both in the Soni bazaar, so all information and communication facilities are available.
LABOUR SUPPLY
Supply of labour also influence the selection of location, it requires both type of labour semiskilled & skilled. Both can be made available easily in Rajkot. Therefore labour never creates problem.
POWER SUPPLY
An uninterrupted & adequate supply of power is must as the whole business is operated by electric power. As Rajkot is city area the power also never creates problem Thus the above all factors justify the selection of the location so the selection would definitely contribute to the profitability & success of plant.
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PRODUCT USES
In the market jewellery industry, varieties of ornaments are available such as, gents rings and ladies rings from light weight to heavy weight. More than this, there are also varieties in studded as well as plain rings. Ranges are available in weight range of lightweight range. In todays modern era, there are thousands of designs available for above given ornaments at one producer or dealer. The customer can also ask for their own design, wide selection options are available for customers. The buyer of jeweler ornaments can be can be divided in to two according to their own design; wide selection options are available for customers. The buyer of jewellery ornaments can be divided in to two according to their utilization.
1. Dealers or Commercial Buyers. 2. Individual Buyer. Commercial buyer includes Dealers, Wholesaler, Agents, Show-room holders, Fashion-design institutes, Ornament House, etc. Individual buyer covers a person or family or a group who purchase in retail. The manufacturers generally deals with the commercial buyers, if individual buyer asks, they recommends the name & address of the dealers who sales their products. Thus, wholesalers and dealers are the buyers of the firm.
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MARKET ANALYSIS
The market of jewellery ornaments is steadily increasing with more & more at local, national & international level. With greater demand from people, producers are maximizing their capacities. The market is overcrowded with brands of Jewellery Ornaments. Experiment has shown that advertisement & Publicity of new designed ornaments have influenced the consumption pattern of jewellery ornaments. So, Small Scale Industries in Jewellery ornament manufacturing is increasing their market share by following promotion & advertisement policies of multinational companies & introducing the modern techniques. It has given better infrastructure and sales of Jewellery industry.
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1. 2. 3. 4. 5. 6.
Increase in The Population of Country. Rapid Industrialization In the Country Increase In Purchasing Power Of People. Durability Of Product Wide selection Opportunity Available Change In Fashion Industry. 7. Increase In living Standard. There has been an appreciable increase n export of jewelry Ornaments. In addition the boom period in the jewellery industry has widened the demand potential for jewellery products. So, the jewellery industries are having local, national & Multinational demand and potential.
MANUFACTURING PROCESS
The production process of the firm is somewhat complex, but the whole process is being managed by efficient administration and supervision and performed by most experienced person. The production process of jewellery ornaments includes following stages.
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NO.
1. 2. 3. 4. 5. 6. 7.
PARTICULARS
Preparation of pattern Raw material Die making department Wax department Vacuum department Vibrators of Finishing department Packing & Dispatching department
Page No.
15 15 15 15 15 16 16
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1. Preparation of pattern.
To make out pattern is the primary stage. Firstly the design is being prepared by special personnel or as per given by customer. On the basis of design, the pattern maker prepares pattern.
2. Raw Material.
The basic raw material is GOLD, which can be made available from the market at anytime.
4. Wax Department.
After preparing die firstly, the wax being melted in wax injector machine. The temp. of wax reaches at 85C then the wax is properly melted. Dyes, which have been made by die department, are being injected (pushed) from the nozzle * wax piece according to the pattern can be designed.
5. Vacuum Department.
The workers put flask on vacuum plates, flow the mixtures of investment powder and water into the flask & put plastic transparent doom on it. They start vacuum machine, when bubbles are seen they stop it.
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POLLUTION CONTROL
The company also cares about health of the people. The project does not create any noise or water pollution. So for as our pollution is concerned, the latest shuttle kilns and exhaust fan are settled. The company has applied for certificate of (SPCG) state pollution control board, as the company having the all standards to get this certificate the company will not find problem in getting this certificate.
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PARTICULARS
Total Fixed Assets Working Capital Requirement Total Cost of Project Source of Finance Interest Depreciation Cost of Production Profitability Statement Ratios Sales Forecast
Page No.
19 20 21 22 22 22 24 25 26 28
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No.
01. 02. 03. 04. 05.
Particulars
Work Shop Machinery Furniture Electric fittings Other tools
Amount
4,00,000 85,920 80,000 24,000 16,000
Total
---------6,05,920 =====
MACHINERY
NO
01. 02. 03. 04. 05. 06.
PARTICULARS
Die press Polish Machine Machine Cut Painting Plant Roll Press Machine Metal melting furnace.
RATE
@ 13,440 @ 8,960 @ 20,000 @ 4,000 @ 20,000 @ 19,520
AMOUNT
13,440 8,960 20,000 4,000 20,000 19,520
TOATAL
85,920
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Quantity
11.000 kg. 265 gm. 500 gm. 250 gm.
Rate@Kg.
8,90,000 20,000 270 300
Amount
97,90,000 5,300 135 75
TOTAL
97,95,510
UTILITY
No.
1
Particular
Power
Quantity
6,000 Units
Rate
5 @ Unit
Amount
30,000
No. Salary
1 1 2 5 5,000 2,500 1,500 500
Monthly
5,000 2,500 3,000 2,500
Total Yearly
13,000 1,56,000
20
Yearly
2,000 12,000 12,000 1,000
Total
27,000
Amt.
97,95,000 1,56,000 30,000 27,000
Total
1,00,08,510
Amount
6,05,920 1,00,08,510
Total
1,06,14,430
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SOURCE OF FINANCE
1. 2. Ownership capital 80% Borrowed Capital ICICI BANK 10% HDFC BANK 10% 85,60,000 10,07,000 10,07,000 --------------1,07,00,000 =========
INTEREST
1. 2. Ownership capital 8% Borrowed Capital ICICI BANK HDFC BANK 11% 11% 6,84,800 1,17,700 1,17,700 ------------9,20,200 =======
DEPRECIATION
No.
1 2 3 4 5
Particular
Machinery Work Shop Furniture Electric fittings Other tools
Amt.
85,920 4,00,000 80,000 24,000 16,000
Depreciation
20% 10% 15% 15% 15%
Amt.
17,184 40,000 12,000 3,600 2,400
Total
75,184
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VARIABLE COST
PARTICULAR
Variable Cost :Raw material Wage and salary Utility Other expenses [A.] Total Variable Cost Fixed cost :Depreciation Interest Insurance [B.] Total fixed cost [C.] Total cost [A.] + [B.] cost per piece. 1,10,15,894/2,400
AMOUNT
97,95,510 1,56,000 30,000 27,000 --------1,00,08,510
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COST OF PRODUCTION
Installed capacity Total utilized capacity Total fixed cost Total variable cost Total cost Cost per piece (100%) (93%) = = = = 2,580pcs. 2,400 pcs. 10,07,384 1,00,08,510 1,10,15,894 4,589.95 Rs.
MARGIN OF TOUCH
Weight 5 gm. Sales cost price + profit = Touch 3.50 0.175 4,589.95 155.75 ---------4,745.70 ====== 2,400.00 0000.00 ----------2,400.00 ====== 1,13,89,689 Rate 890@gm. 155.75
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PROFITABILITY STATEMENT
PARTICULAR Sales Less Variable cost: raw material utility wage & Salary other expenses CONTRIBUTION Less: Fixed cost : Depreciation Interest Insurance PBT Less: Tax PAT 75,184 9,20,200 12,000 --------97,95,510 30,000 1,56,000 27,000 -------AMOUNT AMOUNT 1,13,89,680
1,00,08,510 ----------13,81,170
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RATIOS
EBIT ----------------------Total cost of prices 12,95,986 -------------1,10,15,894 11.75% X100
ROI
100
= =
NPR
= =
X100
X100
GPR
= =
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BEP (IN %)
Total Fixed Cost X capacity Utilization ---------------------------------------------------- x 100 Total Fixed Cost + EBIT 10,07,384 X 93 ------------------------------------- x 100 {10,07,384 + 12,93,986} 40.71%
SALES FORECAST
Capital 1st Year 93% Sales ( in Pieces ) 2,400 2nd Year 95% 2,451 3rd Year 98% 2,528
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COST SHEET
Particulars
COST OF RAW MATERIAL CONSUMED Opening + Purchase - Closing _____ Raw material consumed Utilities PRIME COST Factory overheads Salaries Depreciation 4,129.6 2 WORKS COST Office overheads Salaries Packing Material Telephone Insurance Advertisement Interest Depreciation on furniture 4,566.7 9 Opening stock of finished goods
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Rs.
Rs.
66,000 19,584
85,584 99,11,094
------1,09,60,294 ======
COST SHEET
Particulars
COST OF RAW MATERIAL CONSUMED Opening + Purchase - Closing Raw material consumed Utilities PRIME COST Factory overheads Salaries Depreciation WORKS COST Office overheads Salaries Packing Material Telephone Insurance Advertisement Interest on Land Owned Depreciation on furniture Opening stock of finished goods - closing stock of finished goods COST OF PRODUCTION
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2nd
3rd
1,00,06,166
1,03,22,150
90,000 2,043 12,258 11,800 1,022 9,39,989 10,200 1,11,84,811 -- ___ ---------1,11,84,811
90,000 2,108 12,645 11,600 1,054 9,69,673 8,670 1,15,26,529 -- ___ ---------1,15,26,529
======
======
ICICI
Loan Installment Interest Remaining
HDFC
Loan Installment Interest Remaining
AMOUNT 1,13,89,680 ---------1,13,89,680 97,95,510 30,000 1,56,000 ----------99,81,510 ----------14,08,170 75,184 9,20,200 12,000 27,000 10,34,384 3,73,786 59,136 -----------3,14,650
======
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BALANCE SHEET
PERTICULAR
SOURCES OF FUNDS Ownership capital Borrowed loan:ICICI BANKHDFC BANK P&L A/C. TOTAL APPLICATION OF FUNDS Workshop (Net Block) Machinery (Net Block) Furniture (Net Block) Electric fitting (Net Block) Other tools (Net Block) Debtors Cash Bank TOTAL 1,10,14,650 ======= 36,000 68,736 68,000 20,400 13,600 19,00,000 68,07,914 21,00,000 ----------86,56,000 10,70,000 10,70,000 3,14,650 ------------1,10,14,650 =======
AMOUNT
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1,16,34,691 1,20,02,028 --------------------1,16,34,619 1,20,02,028 1,00,06,166 1,03,22,150 30,645 31,613 1,56,000 1,56,000 ----------1,01,92,811 ----------14,41,808 65,047 8,39,522 11,800 27,581 ----------9,43,950 4,97,858 96,357 -----------4,01,501 ====== ----------1,05,09,763 ----------14,92,265 56,403 7,66,075 11,600 28,452 ----------8,62,530 6,29,735 1,35,920 -----------4,93,815 ======
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BALANCE SHEET
PERTICULAR SOURCES OF FUNDS Ownership capital Borrowed loan:ICICI BANK HDFC BANK P&L A/C. TOTAL APPLICATION OF FUNDS Workshop (Net Block) Machinery (Net Block) Furniture (Net Block) Electric fitting (Net Block) Other tools (Net Block) Debtors Cash Bank TOTAL 32,400 54,989 57,800 17,340 11,560 20,90,000 60,99,412 24,00,000 -----------1,07,63,501 ======= 29,160 43,991 49,130 13,872 9,826 19,50,000 56,31,836 27,00,000 -----------1,04,27,815 ======= 86,50,000 8,56,000 8,56,000 4,01,501 1,07,63,501 86,50,000 6,42,000 6,42,000 4,93,815 1,04,27,815 AMOUNT 2nd AMOUNT 3rd
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TAXES
Rs.
PROFIT Exemption -------100001-150000 X 10% 150001-250000 X 20% 250001-209000 X 30% 373786 110000 ---------263786 50000 ---------213786 100000 ---------113786 113786 ----------
Rs.
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&
MANKI INDUSTRIES 304, GIRIRAJ CHEMBER, OLD GADHIVAD, RAJKOT 360 002 PH. NO. 0091 0281 2227086
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