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The undersigned are the declared main partners of this project and the
guidelines of Prof.Rouchika Gulati . It is pointed that any detection of
copying this projection is liable to be punished in the way of the college
deems to of it.

Submitted by :







Acknowledgement :

the project is made through with the help of my classmate.


earnest attempt has been made in this Project to present the element of
business and what are the basic materials to stand up the company.


Team Member Acknowledges with gratitude the confidence given by our

Prof.Rouchika Gulati.


Team wishes to thank its Classmates, for his abiding interest in the project and
for the encouragement and support form them, for their unfailing courtesy.


Team craves to give gratification to the audience/teacher for the error that
might have crept advertently.

Suggestion for improvement are welcome

By Group Members

Introduction about the company:

Our companys name is Truex.Pvt.Ltd.Company, it is a partnership firm. The discovery of the

business opportunities and the subsequent funds, property and managerial ability into a business
concern for the purpose of making profits.

The promoters of the Truex companies are Mr. Achint Masih and Mr. Allwyn Thomas, they
assembled the business elements & making provision of the funds necessary to launch the enterprise.


CONTENTS OF MEMORANDUM: - this contain the main clauses of the company

NAMES CLAUSE: the name of the company is Truex.Pvt.Ltd.Company and there is no

identical or similar to the name of another existing company of firm.

REGISTRED OFFICE CLAUSE: the place of its registration residence is the place of its
management & control (domicile) of the company. New Delhi is the registered office of
the company.

LIABILITY CLAUSE: the liability of the directors is unlimited and the amount which
both the member undertake to contribute to the assets of the company in the event of
its winding up.

CAPTIAL CLAUSE: the authorized share capital of the company is Rs.10,00,000/- and
divided into 10,000 equity shares of Rs.100/-(rupees one hundred only)each

5,100 shares taken by Achint Masih and 4,900 shares taken by Allwyn Thomas, these
are the number of shares taken by each subscriber and total shares taken 10,000/only.

Working principle of the product:

(puffer hose)

Capital formation of the company:

The companies 2 directors are ACHINT MASIH and ALLWYN THOMAS

The authorized share capital of the company is Rs 10,00,000/-(rupees of ten lakhs

only), divided into 10,000 ( Ten thousand only) equity shares of Rs 100/- (Rupees
one hundred only) each.

We the several persons, whose names & addresses are subscribed are desirous of
being formed into a company in pursuance of this memorandum of association,
and we respectively agree to take the number of shares in the capital of the
& names:
Number of shares
Signature of
against our
Occupation of subscribers
taken by each


5100 (Thousand & One

Hundred shares)


4900 (Four Thousand &

Nine Hundred shares)

Total shares taken

10,000( Ten Thousand

Objectives & future Plans of the company:

To continuously deliver shareholder value by:

Manufacturing and supplying

products and services that satisfy the needs of our customers

Constantly achieving operational excellence

Conducting our business in a safe, environmentally sustainable and economically optimum manner

Employing a diverse, innovative and results-oriented team motivated to deliver excellence.


We are committed to deliver sustainable excellence in business performance by focusing on the


Benefit our shareholders

Realize the potential of our people

Meet our customer requirements

Maximize refinery margins

Safeguard asset integrity

Deliver structural cost reductions

Sustain a robust management system

Deliver continuous sustainable Health, Safety, Security and Environmental excellence.

Future plans of the company:


To implement the policy of fully integrated manufacturing plant

AREA: 2 acres

MANUFACTURING CAPACITY: 3,000 products (in each 2 plants)

A SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is an in-depth review of our
business's strengths and weaknesses, as well as any opportunities and threats that we face.

We should carry out a SWOT analysis at least once a year to help to refine our business plan and develop
strategies that will achieve our goals.

Key areas to include in our analysis:

Sales:are we rising or falling? Whats profitable and whats not?

Finance:are our books in order? Hows our cash flow?

Customers:are we listening to them? Are we keeping the profitable ones?

Products and services:Are we meeting our customers needs?

Suppliers:our suppliers are satisfied with their products or services? If not, are there any alternatives?

Marketing:Are we targeting the right people? Are we using the right channels?

Staff:do we have the right people doing the right jobs? Do we need any training?

Marketing strategy:

After all this, we have focused on the 4 P's of marketing which includes Product, Price,
Promotion, and Place.

PRODUCT: the "puffer hose" is a unique hose which is totally new to the Indian market.
This product serves the basic needs of the households and it might help to conserve

PRICE: since this product is totally new to the Indian market but it is already available in
US for $19 i.e. 1available we have our production base in China and with cheap labour,
we are providing this product for 400 (inclusive of all taxes).

PROMOTION: we have followed the pattern of print and visual media for the promotion
of our product. Our product will be advertised both on TV and in newspapers. Plus, we will
hold a demonstration of our product at some places or fair.

PLACE: this product is targeted for the urban population and for small towns for meeting
the household needs. The hose is available in different sizes so the households have
varieties to choose from. Our product will be available on general stores, malls and online.

Financial capability:

The company needs Rs12,00,000 for the installation of new 2 factory

in future periods, which would an annual EBIT of Rs. 2,00,00. The
company has the objectives of maximizing the EPS & also providing
sweat shares for employees.

It is considering the possibility of issuing equity share plus raising a

debt Rs. 2,00,000 & Rs. 6,00,000 & Rs. 10,00,000/- , the current
market price per
share is Rs.40 which is expected to drop to Rs.
25 per share, if the market borrowing were to exceed to 7,50,000/-

Cost of borrowing are indicated as under:

cost of borrowing up to Rs.2,50,000 - ( 10% PA)

between Rs.2,50,000 & 6,25,000

- (14%P.A)

Assuming tax rate to be 50% work out EPS in each case & suggest the
best option.

Net Profit: Value of firm(net income





Net Operating Income( EBIT)




Less: Interest on Debenture




Earning available to Equity





Equity Capitalization rate (Ke)




Market value of Equity (s)=





Market Value of Debt (B)




Total Value of firm(S+B=V)




Overall cost of




Cost of Equity


Return available:


Profit available from Truex.Co &( being 10% of net profit)


(-) interest payable loan@ 10% on Rs. 3,00,000


Net Return


How to manage the HRM :

HRM is that part of management process which is primarily concerned with

the human constituents of an organization

For our product we use following sources of recruitment:



Internal sources

Internal sources include personnel already on the pay roll of an organization.

Promotions: promotions from among present employees can be a good

source of recruitment.

Transfers: a transfer is a change in job assignment. It does not involve a

change in responsibility and status.

Response of employees to notified vacancies: employees who are qualified

but are doing jobs below their educational qualifications or skill level may
respond to notified vacancies.

How to manage the HRM:

b) External sources

These sources lie outside the organization. They may include

Advertisement: advertising in newspapers, trade journals and magazines are most frequently used

Employment exchange: an employment exchange is an office set up for bringing together as quickly
as possible candidate searching for employment and employee looking for prospective employees.

Campus recruitment: sometimes recruits are sent to for educational institute where they meet the
placement officer or the faculty members who recommend suitable candidate.

Unsolicited applicants: unsolicited applicants are another source. Some candidates send in their
applications without any invitation from the organization.

Selection of a candidate

For our product we need to select a candidate who had following qualities:

Technical knowledge

Positive attitude


Problem solver

Quick action

Reasons for failure :

The hose freezes in the hill stations during winters...

Especially at the time of snowfall.

The nozzle is made of plastic... It might crack if tightened very

hard and with very heavy pressure

Research findings: future product

Research finding :

This is our product copper hand gloves , which is found by our research & development team
headed by Mr. ABHISHEK ANGRISH. The product specification given below:

The technology behind the gloves is unique. Compression gloves for arthritis have been in use for
some time. Copper has been used for generations to help with the pain and swelling that plague
those who suffer from joint pain, stiffness, and tenderness in the muscles that arthritis sufferers
endure. Cooper Hands offer compression, but are made from a breathable fabric, that instead of
reducing circulation actually aids it. The joints of the hand are supported giving the wearer a more
confident grip when tackling daily tasks such opening a bottle, turning a doorknob, or using a pair of
hedge clippers.

These gloves are made of ultra-light compression material that allows the skin to breathe even as it
supports and works to reduce the swelling, and tenderness associated with this type of condition.
Compress will improve the circulation, but wearing many such gloves too long is difficult as the
material used is often heavy, and difficult to move through daily tasks while wearing. This ultra-light
material however is wearable even while sleeping, and doesnt constrict movement. The gloves only
extend passed the second knuckle of the fingers, and this allows the wearer to have sensitivity in the
fingers. This makes it easier to perform tasks such as typing, holding paper objects, or picking up
small items. The result of this technology is the benefit of both copper and compression, while still
being able to wear the gloves for long periods of time and even while sleeping to offset the problems
of stiffness, pain, and swelling.


The project work has been completed by the team members, under
lot of suggestion and guidelines from our friends, teachers, class
mates and parents.

Project inclusion is about How to form a company with all the basic
elements which are necessary to form company

Another task How to make an advertisement for our product of the

company which gives the information to the consumers. As the
important part of the project impact.

To complete this project through many websites and books
Help us to finish the project.


Financial and Marketing Book (S.K gupta)

Achraya and govckar (Business org and Management)

Bedi .R.D Theory and Practice of Cooperation

Bhusan. Y.K Fundamentals of Business

Cyril o Donnel Mcgraw hill book company