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!  !"#:Murata Manufacturing Co. Ltd. (Kyoto, Japan)

! The subsidiary will be located in Vishakhapatnam , as it is a SEZ


and has a port. The manufacturing unit of Samsonite is also
located in Vishakhapatnam which is adds to the advantage by
reducing the cost of transportation cost.

! The Subsidiary Company will be providing the Piezotronic


Technology to the various products of Samsonite such as laptop
bags, suitcase, etc.
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! Murata Manufacturing Co., Ltd. is a Japanese manufacturer of
electronic components, based in Nagaokakyo, Kyoto.
! Started as personal venture in October, 1944 in by Mr. Akira
Murata.
! Leading company primarily involved in the manufacturing of
ceramic passive electronic components, primarily capacitors, and
it has an overwhelming share worldwide in ceramic filters, high
frequency parts, and sensors.
! The company manufactures semi-finished products for various
electronic components and supplies them to its manufacturing
subsidiaries in Japan and abroad.
! $%%$ 
 To plant the seeds of new technologies and to bring these to
fruition for the benefit tomorrow͛s society.͟

! $%$ 
 to pursue total quality and customer satisfaction, while
continuously introducing innovative products in integrated and
inter-related technologies which will allow our company our
employees and other partners and other communities.͟

!

   END LUAES WT CUTTN EDE TEC NOLO͟
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! The global luggage market is growing with increasing
population, changing travel trends and spending habits.
! The market is taking a turn towards brands and fashion
products.
! A factor that has a substantial influence on the luggage
market is changing preferences of consumers.
! since this type of technology has not been introduced in
ndia before, Murata will have an edge over the other
luggage and back-pack companies especially after the tie ʹ
up with Samsonite.
  
! Murata Manufacturing Co. Ltd. will establish a
branch office in ndia (a wholly owned
subsidiary).

! The branch office of the company will be


established in a SEZ (Vizag) in ndia.

! Murata Manufacturing Co. Ltd. will enter ndia


through the automatic procedure.
 
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SPEED OF
THREAT DESCRIPTIONS PROBABILITY ONSET FOREWARNING DURATION
(H/M/L) (S/G) (Y/N) (L/I/S)

POWER SUPPLY LOW GRADUAL NO SHORT

TRANSPORTATION MEDIUM GRADUAL YES INTERMEDIATE

POLITICAL CONDITIONS LOW SUDDEN NO LONG

TECHNOLOGICAL CHANGES HIGH SUDDEN NO LONG

NATURAL CLAMITIES LOW SUDDEN NO LONG

LABOUR SUPPLY LOW GRADUAL YES INTERMEDIATE

CHANGE IN CUSTOMER HIGH SUDDEN NO LONG


PERFERENCES

RAW MATERIAL AV. LOW GRADUAL YES INTERMEDIATE

STANDARD OF LIVING MEDIUM GRADUAL YES INTERMEDIATE

ECONOMY MEDIUM GRADUAL YES INTERMEDIATE


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THREAT PROBABILITY SPEED OF FOREWARNING DURATION


DESCRIPTIONS (H/M/L) ONSET (Y/N) (L/I/S)
(S/G)

BREAK DOWN OF MEDIUM SUDDEN NO INTERMEDIATE


MACHINERY

TRAINING LOW GRADUAL YES LONG

COMPANY IMAGE MEDIUM GRADUAL YES LONG

R&D HIGH SUDDEN NO LONG

FINANCIAL HIGH SUDDEN NO LONG


CAPABILITIES

MANAGEMENT MEDIUM GRADUAL YES INTERMEDIATE


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)!$ 
! ! )"*$+%)!$ 
›or   ͟ the main customers is going to be above 16 years
basically who want to electronics in their bags. The income levels
should be matching to upper middle class and higher class.

! %#+* )"*$+)!$ 
We are looking for civilized ndian customers who are fond of
different types of travel bags.

!  )"*$+,%)!$ 
The prevalent atmosphere and lifestyle of ndia will determine the
success of the service to a large extent.
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""!$--, - '$)* $+ ! ) ."% We are targeting this range of


income groups as we are launching this service for those who are very
fond of travelling and using different types of bags.

 .* - *$)* ) ) ."% We are targeting this particular segment
of age groups as we believe that it is mostly the youth or the working
class who want to travel to different places and need varieties in travel
bags.

/,% Due to its mini-form factor, Synergy is highly convenient to


carry along during journeys or trips. This is why it will be targeted at
travelers as well.
   

! We will position Synergy as a technology for


lifestyle travel bags for the target customers.

! Synergy will represent durability with a


different technology making the journey of
the travelers more smooth and comfortable.

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! The distribution of the technology will be
through  Samsonite͟ and its distribution
channel. The technology will be fit into the
products of Samsonite and will be sold
through the Samsonite outlets all over ndia.
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Capacitor to store
charge
Electric Charge
Piezoelectric Material
This is what provides Not directly
will generate charge connecting to battery
charge
when compressed as it will not work

Power to charge Electronic circuit Lithium polymer


Battery
Selection unit to
provide power as To store produced
required charge for future use
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No. of Salary Per Total Salary Per Salary Per
Employees Persons Head Month Annum
Chief Accountant 1 12,500.00 12,500.00 1,50,000.00
Accountants 4 8,500.00 34,000.00 4,08,000.00
Cleaners 4 4,000.00 16,000.00 1,92,000.00
Receptionist 1 6,500.00 6,500.00 78,000.00
Department Head 1 30,000.00 30,000.00 3,60,000.00

Research & Development 1 27,000.00 27,000.00 3,24,000.00


Production Manager 4 26,000.00 1,04,000.00 12,48,000.00
Researchers 6 21,000.00 1,26,000.00 15,12,000.00
Production Engineers 4 15,000.00 60,000.00 7,20,000.00
Unskilled Labourers 10 4,000.00 40,000.00 4,80,000.00
Skilled Labourers 60 6,000.00 3,60,000.00 43,20,000.00
Security 2 4,500.00 9,000.00 1,08,000.00
Total 98 1,65,000.00 8,25,000.00 99,00,000.00
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! Creation of energy
! Re-chargeable Battery
! Rain Water arvesting
! Modern business suitability
! ealth
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,#.+.
1st Year
Employees No. of Persons Salary Per Total Salary Per Salary Per
Head Month Annum
Chief Accountant 1 12,500.00 12,500.00 1,50,000.00
Accountants 4 8,500.00 34,000.00 4,08,000.00
Cleaners 4 4,000.00 16,000.00 1,92,000.00
Receptionist 1 6,500.00 6,500.00 78,000.00
Department Head 1 30,000.00 30,000.00 3,60,000.00
Research & Development 1 27,000.00 27,000.00 3,24,000.00

Production Manager 4 26,000.00 1,04,000.00 12,48,000.00

Researchers 6 21,000.00 1,26,000.00 15,12,000.00


Production Engineers 4 15,000.00 60,000.00 7,20,000.00

Unskilled Laborers 10 4,000.00 40,000.00 4,80,000.00


Skilled Laborers 60 6,000.00 3,60,000.00 43,20,000.00
Security 2 4,500.00 9,000.00 1,08,000.00
Total 98 1,65,000.00 8,25,000.00 99,00,000.00
2nd year

Employees No. of Persons Salary Per Total Salary Per Salary Per
Head Month Annum

Chief Accountant 1 13,750.00 13,750.00 1,65,000.00


Accountants 4 9,350.00 37,400.00 4,48,800.00
Cleaners 4 4,400.00 17,600.00 2,11,200.00
Receptionist 1 7,150.00 7,150.00 85,800.00
Department Head 1 33,000.00 33,000.00 3,96,000.00
Research & Development 1 29,700.00 29,700.00 3,56,400.00

Production Manager 4 28,600.00 1,14,400.00 13,72,800.00


Researchers 6 23,100.00 1,38,600.00 16,63,200.00
Production Engineers 4 16,500.00 66,000.00 7,92,000.00
Unskilled Labourers 10 4,400.00 44,000.00 5,28,000.00
Skilled Labourers 60 6,600.00 3,96,000.00 47,52,000.00
Security 2 4,950.00 9,900.00 1,18,800.00
Total 98 181500.00 907500.00 10890000.00
rd Year
Employees No. of Persons Salary Per Total Salary Per Month Salary Per
Head Annum
Chief Accountant 1 15,125.00 15,125.00 1,81,500.00
Accountants 4 10,285.00 41,140.00 4,93,680.00
Cleaners 4 4,840.00 19,360.00 2,32,320.00
Receptionist 1 7,865.00 7,865.00 94,380.00
Department Head 1 36,300.00 36,300.00 4,35,600.00
Research & Development 1 32,670.00 32,670.00 3,92,040.00

Production Manager 4 31,460.00 1,25,840.00 15,10,080.00

Researchers 6 25,410.00 1,52,460.00 18,29,520.00

Production Engineers 4 18,150.00 72,600.00 8,71,200.00


Unskilled Labourers 10 4,840.00 48,400.00 5,80,800.00
Skilled Labourers 60 7,260.00 4,35,600.00 52,27,200.00

Security 2 5,445.00 10,890.00 1,30,680.00


Total 98 199650.00 998250.00 11979000

  


Source Amount

Murata Manufacturing Pvt. Ltd (Japan) 40,00,00,0000

Total 40,00,00,0000
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Particulars Amount Details
ASSETS (A)
Land 30,49,20,000.00 Acquired in Vizag,it is a special economic
zone. 1 acres of land acquired 7000 per.sq.ft

Construction Cost 2,70,00,000.00 The main building setup for the assembly of
various element to make the equipment.20000
sq ft construction @1350 per sq ft.

Secondary Constructions 27,00,000.00 Various storage house, boundaries of factories


and other construction. 820¶*12*9´ for
boundary wall construction.

Furniture and Fittings 3,34,600.00


Stitching Machinery 14,28,300.00 Various machinery that would be required for
assembling and stiching of the element on the
bag. Model number 591-c300@ 47610. 30 such
machines bought.

Computer Desktop 2,34,000.00 12 Compaq SG3510IL Desktops @ Rs.19500


Telephone and Internet 23,500.00 Airtel Telephone Connection Deposit ±
Rs.1800 and D-Link Wi-Fi Router ± Rs.2500
and telephone(8) ± Rs.2400
Electrical Fittings 1,96,375.00 50 CFL Bulbs @ Rs.40, 25 Bajaj µEnergy
Smart¶ Fans @ Rs.1555, 5 units of 150W Street
yellow Colour Sodium @ Rs.4500 for
segregation area and Installation of Bulbs incl.
wiring @ Rs.7300, 10, 250W Flood Lights @
Rs.6500 and Installation of bulbs incl. wiring ±
Rs.26500, wiring for the office ± Rs.24200.
Printer 7,200.00 HP- D4368 Printer @ Rs.3600. 2
in number.
Rain Water Harvesting 15,500.00 Model set up by Hinren
Technologies Pvt. Ltd. (inclusive
of 1000 lt. tank).
TOTAL ,68,59,475.00

START UP EXPENSES(B)
Legal Expenses 27,500.00 Application for SEZ ± Rs. 5000,
Unique Identification Number ±
Rs.100, Digital Signature
Certificate ± Rs. 400, PAN ±
Rs.12000 (Foreign Company),
Other Expenses ± Rs. 10000
Trade License 2,500.00
Misc. Expenditure 1,50,000.00

 c01 1,80,000.00

WORKING CAPITAL© ,29,60,525.00 Cash and Bank

RESERVES AND SURPLUS(D) ,00,00,000.00

GRAND TOTAL (A+B+C+D) 40,00,00,000.00


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Particulars 2010-11 2011-12 2012-1
Total Cost Cost Per Unit Total Cost Per Total Cost Cost Per
Cost Unit Unit
Direct Cost:-

Raw Materials
Consumed:

Opening Stock of 0.00 0.00 0.00 0.00 0.00 0.00


Raw Materials

Add:- Carriage 6,000.00 0.14 7,800.00 0.15 9,690.00 0.16


Inward

Add:- Purchases 6,62,50,000.00 1,465.00 8,45,62,50 1,58.25 40,7,90,625.00 1,615.16


0.00

Less:- Closing Stock 0.00 0.00 0.00 0.00 0.00 0.00

Direct Wages 69,60,000.00 27.84 76,56,000.0 0.62 84,21,600.00 .69


0

Prime Cost 7,2,46,000.00 1,492.98 9,22,56,0 1,569.0 41,22,51,915.00 1,649.01


0.00
Indirect Cost:-

Factory Overheads

Repairs and 24,000.00 0.10 25,200.00 0.10 26,460.00 0.11


Maintainance
Electricity 2,52,000.00 1.01 2,64,600.00 1.06 2,77,80.00 1.11

Works Cost 7,4,98,000.00 1,49.99 9,25,46,10 1,570.18 41,25,56,205.00 1,650.22


0.00

Office Overheads:-

Salaries 29,40,000.00 11.76 2,4,000.0 12.94 5,57,400.00 14.2


0
Stationery 24,000.00 0.10 25,200.00 0.10 26,460.00 0.11

Telephone bill 60,000.00 0.24 66,150.00 0.26 66,150.00 0.26

Conveyance 24,000.00 0.10 26,460.00 0.11 26,460.00 0.11

Health Insurance 96,000.00 0.8 96,000.00 0.8 96,000.00 0.8


Premium

Fire Extinguisher 7,200.00 0.0 7,200.00 0.0 7,200.00 0.0


Contract
Fire Insurance 15,950.24 0.06 15,950.24 0.06 15,950.24 0.06
Premium

Trade License 0.00 0.00 1,500.00 0.01 1,500.00 0.01


Renewal

Misc. Expenses 48,000.00 0.19 52,800.00 0.21 58,080.00 0.2

Cost of 7,67,1,150.24 1,506.85 9,60,71,60.24 1,584.29 41,64,11,405.24 1,665.65


Production
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Particulars 2010-11 2011-12 2012-1
Income
Sales:-
Synergy 45,00,00,000 47,25,00,000 49,61,25,000

Total Income 45,00,00,000 47,25,00,000 49,61,25,000


Expenditure
Sockets 3,75,00,000 3,93,75,000 4,13,43,750
Lithium Ion Batteries 17,50,00,000 18,37,50,000 19,29,37,500
Wires 37,50,000 39,37,500 41,34,375
Piezoelectric Cells 15,00,00,000 15,75,00,000 16,53,75,000
Salaries 99,00,000 1,08,90,000 1,19,79,000
Transport 36,000 37,800 39,690
Repairs & Maintenance 24,000 25,200 26,460
Electricity 2,52,000 2,64,600 2,77,830
Stationery 24,000 25,200 26,460
Telephone Bill 60,000 63,000 66,150
Conveyance 24,000 25,200 26,460
Health Insurance Premium 96,000 96,000 96,000
Fire Extinguisher Contract 7,200 7,200 7,200

Fire Insurance Premium 15,950 15,950 15,950

Preliminary Expenses W.O 60,000 60,000 60,000

Trade License Renewal - 1,500 1,500

Misc. Expenses 48,000 52,800 58,080

Cost of Sales 7,67,97,150 9,61,26,950 41,64,71,405

Depreciation 18,81,703 17,21,710 15,88,479

PBT 7,1,21,147 7,46,51,40 7,80,65,116

Income Tax Payable - - -

PAT 7,1,21,147 7,46,51,40 7,80,65,116

Amount carried to B/S (Net Profit) 7,1,21,147 7,46,51,40 7,80,65,116


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1st year
Services Rates No. of Units in the year Total

Synergy 1,800 2,50,000 45,00,00,000


Total 1,800 45,00,00,000

2nd year

Services Rates No. of Units in the year Total

Synergy 1,800 2,62,500 47,25,00,000


Total 1,800 2,62,500 47,25,00,000

rd year

Services Rates No. of Units in the year Total

Synergy 1,800 2,75,625 49,61,25,000


Total 1,800 2,75,625 49,61,25,000
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Particulars 1-0-2011 1-0-2012 1-0-201

SOURCES OF FUNDS
Murata Manufacturing Co. Pvt. Ltd (JPN) 37,00,00,000.00 37,00,00,000.00 37,00,00,000.00
General Reserve 3,00,00,000 3,00,00,000 3,00,00,000
Accumulated General reserve 1,42,64,229 2,91,94,497 4,48,07,521
Accumulated Profit 5,70,56,918 11,67,77,990 17,92,30,082

Total 47,1,21,147 54,59,72,487 62,40,7,60

APPLICATION OF FUNDS

Fixed Assets
Gross Blocks 33,68,59,475 33,49,77,772 33,32,56,063
Less: Depreciation 18,81,703 17,21,710 15,88,479
Net Block ,49,77,772 ,2,56,06 ,16,67,584

Current Assets, Loans & Advances


Cash & Bank Balances (b/f) 13,62,23,375 21,26,56,425 29,23,70,019
Net Current Assets 1,62,2,75 21,26,56,425 29,2,70,019

Preliminary Expenses 1,80,000 1,20,000 60,000


Less:- Written Off 60,000 60,000 60,000
Preliminary Expenses A.W.O 1,20,000 60,000 -

Total 47,1,21,147 54,59,72,487 62,40,7,60


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Particulars 1-0-2011 1-0-2012 1-0-201

A. Cash Flow From Operating Activities


Net Profit After Tax 7,13,21,147 7,46,51,340 7,80,65,116
Adjustments for:
Depreciation 18,81,703 17,21,710 15,88,479
Miscellanous Expenses written off 60,000 60,000 60,000
Operating Profit Before Working Capital Changes 7,2,62,850 7,64,,050 7,97,1,595

Net Cash from/(used in) Operations 7,2,62,850 7,64,,050 7,97,1,595

B. Cash Flow From Investing Activities

Increase in Fixed Assets - - -

Net Cash from/(used in) Investing Activities - - -

Net Increase/(Decrease) in Cash & Cash Equivalents 7,2,62,850 7,64,,050 7,97,1,595


Opening Cash & Cash Equivalents 6,29,60,525 1,62,2,75 21,26,56,425

Closing Cash & Cash Equivalents 1,62,2,75 21,26,56,425 29,2,70,019


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Asset Original Value R.o.D Depreciation in 1st year Value after 1st
year

Building 2,97,00,000.00 5%
14,85,000.00 2,82,15,000.00

Furniture 3,34,600.00 18.10%


60,562.60 2,74,037.40

Computers 2,34,000.00 40%


93,600.00 1,40,400.00

Electrical Fittings 1,96,375.00 20.87%


40,983.46 1,55,391.54

Stitching Machinery 14,28,300.00 13.91%


1,98,676.53 12,29,623.47

Printer 7,200.00 40%


2,880.00 4,320.00
Total ,19,00,475.00
18,81,702.59 ,00,18,772.41
Asset Value after 1st R.o.D Depreciation in 2nd Year Value after
year 2nd year

Building 2,82,15,000.00 5% 14,10,750.00 2,68,04,250.00

Furniture 2,74,037.40 18.10% 49,600.77 2,24,436.63

Computers
1,40,400.00 40% 56,160.00 84,240.00

Electrical Fittings
1,55,391.54 20.87% 32,430.21 1,22,961.32

Stitching
Machinery 12,29,623.47 13.91% 1,71,040.62 10,58,582.85

Printer 4,320.00 40% 1,728.00 2,592.00

Total ,00,18,772.41 17,21,709.61 2,82,97,062.80


Asset Value in 2nd year R.o.D Depreciation in rd year Value after rd
year

Building 2,68,04,250.00 5% 13,40,212.50 2,54,64,037.50

Furniture 2,24,436.63 18.10% 40,623.03 1,83,813.60

Computers 84,240.00 40% 33,696.00 50,544.00

Electrical Fittings 1,22,961.32 20.87% 25,662.03 97,299.30

Stitching Machinery 10,58,582.85 13.91% 1,47,248.87 9,11,333.97

Printer 2,592.00 40% 1,036.80 1,555.20

Total 2,82,97,062.80 15,88,479.23 2,67,08,583.57


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›ED COST 16,19,84,853.00


VARABLE COST 21,66,94,000.00
SALES 45,00,00,000.00
CONTRBUTON 23,33,06,000.00
P/V RATO 51.84577%
BREAK EVEN ANALSS
( SALES) 31,24,36,005.00

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PAY BACK PERIOD METHOD

YEAR CASH INFLOW CUMMULATIVE


(Profit after tax but before depreciation and CASH INFLOW
other non-cash expenses)

1 st year 7,32,62,850.00
2nd year 7,64,33,050.00 14,96,95,900.00

rd year 7,97,13,595.00 22,94,09,495.00

4th year 8,21,05,002.00 31,15,14,497.00

5th year 8,45,68,152.00 39,60,82,649.00

6th year 8,71,05,196.00 48,31,87,846.00


$$, 3444
/%!
.!.,$/+%*$5, 6 57* #$%*$)***$$$,
$/%!*$%$!",$%*"#8+9"$ -$%$*7-
*,5##*- 5*7* #$$%%3:4:42;423<
*5 $!=.$-$*7*# + /*
8,+$/%!$%<! *%""

Therefore, the Pay Back Period is 5th year


and 6 months.
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