1                        DECLARATION             I, the undersigned Navnit A Dhorajiya as student of M.B.A. Herebydeclare ...
2                                PREFACE      In India the growth of small sale industries is much more important thanin o...
3              ACKNOWLEDGEMENT      I am very happy to present the product project report. I accept mydeep gratitude towar...
4                    IndexSr. No.                 Particulars   1.     Introduction   2.     Project at Glance   3.     Pr...
5               INTRODUCTION       India is on the movement of its liberalization and open economicpolicy has shown result...
6          Project at GlanceName of Unit                :   MBA Wire EnamelsRegistered Office Address   :   MBA Wire Ename...
7               Promoters BackgroundPartner 1.   Name of Promoter            :   Chauhan Niraj M.   Educational Qualificat...
8              Justification of Location       Location of any industry plays a dominant role in the success orfailure of ...
9              Cheap and skilledunskilled labour is easily available to theunit as it is located in an industrial belt. Co...
10                 About Wire EnamelsIntroduction:      Wire enamels are the kinds of enamels, which are speciallyprepared...
11                    Production Process      These enamels are normally based on oleo resinous base. Thephenolic resin an...
12            Implementation Schedule     I take maximum one and half year to implement this project thetime required for ...
13                        Fixed Assets                            Fixed Assets1) Land & Building:       Particulars       ...
14 No.             Particulars             Units    Rate      Amt. (Rs.)  1.    Delivery Van                       2      ...
15 4.    Skilled workers              2        5,000        10,000       (100% Variable) 5.    Unskilled workers          ...
163) Utilities:                                                          (Per month)      No.                     Particul...
17       Total Working Capital                 5,30,000Total Working Capital for 3 Months and 1 Year  1 Month       3 Mont...
18No.             Particulars                 Amt. (Rs.)1.              Fixed Capital                54,00,0002.        Wo...
19       60% Owned Capital                   =      41,94,000       40% Borrowed Capital                =      27,96,0001)...
20     4th Year   9,04,000     4,52,000   1,17,520    4,52,000     5th Year   4,52,000     4,52,000     58,760       -    ...
21                                                              Amt. (Rs.)   1)                     Ownership Capital     ...
22D) Other Fixed Cost:                                            (Per Year)   No.                  Particulars        Amt...
231)           Total Fixed Cost                       27,27,7202)        Working Capital (1 year)                  63,60,0...
24                              1,50,000                   =          60Rs.              Cost Per Pack                    ...
25         Particulars              1st Year     2nd Year     3rd YearInstalled Capacity of Wire                          ...
26     Total Cost Per lts.        60.00        55.00        50.00          Sales Price of Wire Enamels                    ...
272.       5 lts. Enamel             300.00         345.003.       1 lts. Enamel              60.00          69.00        ...
28                                       Sales Per            Amt.     No.          Particulars                           ...
29       Sales                             1,09,29,600       Less: Variable Cost                 58,68,000       Contribut...
30                   = 11, 97, 220   ×   100                     69, 90, 000                   = 17.12                   C...
31              =         Total Interest   × 100                  Total Capital Employed              =    7, 09, 720   × ...
32Raw Materials Consumed:Opening Stock of Raw materials           -           -+ Purchases                              - ...
33Interest on owned capital                         3,35,520      8,69,520Cost of Production                              ...
34                                      0           0Factory expenses:Raw Materials                      63,60,000   64,60...
35               Manufacturing Account        Manufacturing account of the MBA EnamelsDr.Cr.      Particulars   Amt. (Rs.)...
36Utilities             1,44,000 Closing Stock:Repairs               1,26,000 Raw Materials           10,52,000Depreciatio...
37Post and Telegram         12,000Miscellaneous exp.        36,000Contingency               84,000expenseRepairs          ...
38       Particulars       Amt. (Rs.)         Particulars     Amt.(Rs.) To,                                  By, Tax paid ...
39   +Profit                          6,98,780      20,96,780b) Pabari Brijesh                  13,98,000   +Profit       ...
40                        =    46.31%             B.E.P     =     Fixed Cost         × 100                             Con...
41we would like to increase the demand and if necessary productioncapacity also in order to get into the wider and wider m...
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Nbs wire enamels

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Nbs wire enamels

  1. 1. 1 DECLARATION I, the undersigned Navnit A Dhorajiya as student of M.B.A. Herebydeclare that the Business plan presented in this report is my own work and hasbeen carried out under the supervision of Dr.Rajesh Patel, Director ofNRVIBMS Junagadh. This work has not been submitted to any other universityfor any other examination. Date: Place: Junagadh Signature
  2. 2. 2 PREFACE In India the growth of small sale industries is much more important thanin other countries because in the present situation there is an urgent need toraise the employment. To cope up with the preset requirement of anyemployment the government has given many facilities to the small-scaleindustries in India. To contribute in the industrial growth of the country thegovernment makes more and more efforts for the growth of small-scale units. I am very glad to submit this Business Plan which is in the syllabus ofGTU under entrepreneurship program. The subject, who includes thepreparation of this type of product report, is very good to guide the students inmanagement in real situation. This report is completely imaginary. I am having practical experience ofit but the figures and facilities information is somewhat imaginary.
  3. 3. 3 ACKNOWLEDGEMENT I am very happy to present the product project report. I accept mydeep gratitude towards the principal and staff of college for encouragingme. I am thankful to Dr. Rajesh Patel and all those friends who helped mein preparing my product project report. Lastly, I am also thankful to my family members who alwaysencouraged me and co-operated for the successful completion of the projectreport. In short, I am very much thankful to all those who helped me in myproject report. Index
  4. 4. 4 IndexSr. No. Particulars 1. Introduction 2. Project at Glance 3. Promoters Background 4. Justification of Location 5. About Wire Enamels 6. Production Process 7. Implementation Schedule 8. Fixed Assets and Variable cost 9. Working Capital 10. Cost of Project 11. Sources of Capital 12. Fixed Cost 13. Cost of Production 14. Cost per unit 15. Projected cost of production statement 16. Sales price of Wire Enamels 17. Expected Sales 18. Profit Calculation 19. Return on Investment 20. Cost of Capital 21. Cost Sheet 22. Operating Statement 23. Manufacturing Account 24. Profit and Loss Account 25. Profit and Loss Appropriation Account 26. Balance sheet 27. Ratio Analysis 28. Future Plans
  5. 5. 5 INTRODUCTION India is on the movement of its liberalization and open economicpolicy has shown results. New avenues have opened up for businessactivities, these is an aroma of all round professionalism in the air. Inthis progressive economic scenario, one sector that has emerged as themost happening is small-scale industrial sector. The small-scale sector, the world over, is playing a vital role inthe growth has been rightly considered as the engine of growth in mostcounties. They enhance balanced regional industrial development, andthey act as a nursery for entrepreneurship. The development of SSI isan affirming and assures policy of the government. The common menare the sectors most glorious corporate names have had humble SSIbeginning. Small-scale unit is the pillar of the Indian economy. Most of thebusinesses carried out in India are small-scale units.
  6. 6. 6 Project at GlanceName of Unit : MBA Wire EnamelsRegistered Office Address : MBA Wire Enamels, GIDC Metoda, Gate no. 3, Rajkot.Factory Address : GIDC Metoda, Gate no. 3 Rajkot.Form of Organization : Partnership FirmPartner’s name : Chauhan Niraj M. Navnit Dhorajiya A. Barmeda Sandip V.Product : Wire EnamelsSize of Unit : Small Scale unitCost of Capital : 11.52%Return on Investment : 19.63%Bankers : GSFC, ICICI Bank, SBI.
  7. 7. 7 Promoters BackgroundPartner 1. Name of Promoter : Chauhan Niraj M. Educational Qualification : BBA (Sp.Marketing ) Role in Unit : Marketing and Personnel Financial Contribution : 50% Experience : FresherPartner 2. Name of Promoter : Navnit Dhorajiya Educational Qualification : MBA (Finance) Role in Unit : Finance and Accounting Financial Contribution : 50% Experience : Fresher.Partner 3. Name of Promoter : Bermuda Sandip Educational Qualification : BE. & MBA (Systems) Role in Unit : Production & Technical Financial Contribution : 50% Experience : 1 year in TATA chemicals
  8. 8. 8 Justification of Location Location of any industry plays a dominant role in the success orfailure of the company. It has been rightly said that the mistake ofselecting the wrong site can’t be corrected without heavy losses.Selecting a proper site for establishing small-scale industry thusincreases, as finance is a major constraint for a SSI unit. The proposed location for the establishment of manufacturingfacilities for my unit is GIDC Metoda, Kalavad Road, Rajkot-360 001.Government has declared this area as an industrial area in the Verypast. Due to government incentives, this area has developed very wellwith easy availability of infrastructure facilities. The unit enjoys the following benefits of location:1) Raw Materials: Raw materials are the basic constraint for all industriesregular supply of raw material is very crucial to maintain flow ofproduction. The major raw materials required for manufacturing wireenamels are DMT, MEG, CIX Xylene, Phenol, Glycerol and ButylTitanate, which are easily available in this area.2) Labor Force:
  9. 9. 9 Cheap and skilledunskilled labour is easily available to theunit as it is located in an industrial belt. Concentration on small-scaleunits in the area makes the availability of labour force easy.3) Transportation: Transport facilities are mainly required for distribution offinished products to the retailers and whole sellers. The transportationcost is comparatively less as the market place is away at a distance ofonly 13 skims. And also within the industrial area.4) Power: Power is the main source in order to run an industry. Ifpower is not available at the industrial place in a proper time and in theproper quantity than industrial work cannot be carried out. But herethis problem is not seemed to be arising, as power is available fromGEB at subsidized rates, since the unit is located in an industrial area.
  10. 10. 10 About Wire EnamelsIntroduction: Wire enamels are the kinds of enamels, which are speciallyprepared for the coatings of the wires, used in transformers, motors, fanchoke and other allied electrical machinery in order to prevent themfrom being rusted. These enamels should have maximum flexibility; mar resistance,hardness and abrasion resistance as the wires are wound after coating.Wire enamel is a type of insulating varnish and as the name implies isused in electrical industry for insulating purpose. These enamelsprovide protection from current leakage as well as provide safety fromatmospheric and environmental detriments to electrical equipments andaccessories. High dielectric strength, poor surface conductivity andinsulation resistance are the major requirements of these enamels.They should have good resistance to water, oils, solvents, acids, alkalisetc. The film of the enamels on wire should dry uniformly and shouldbe unaffected at elevated temperatures. Their thermal expansion andcontraction should be the same as those of conductors on which theyare used and they should not be flammable.Market Potential: The use of wire enamel has already been mentioned inintroduction. Wire enamels has purchased by the manufacturers ofenameled wire, which are used in the transformers, motors, fan, chokeand other allied electrical machinery.
  11. 11. 11 Production Process These enamels are normally based on oleo resinous base. Thephenolic resin and D.C.O. stand oil are heated and cooked at 260degree Celsius in the varnish kettle to get the desired viscosity. Thevarnish kettle to get the desired viscosity. The varnish so cooked iscooled is cooled to 15 degree Celsius and then solvents are mixed toget the final desired viscosity of the enamel. Finally driers and siliconresin are added and after testing for its desired quality laid down in I.S.specification, the enamels are packed in drums of 20 lts. Or 5 lts.Capacities. Compositions may vary application-wise. To suit theclimatic conditions compositions are designed.Process Chart: Heating of D.C.O. stand Oil Cooling of Varnish Addition of Driers Mixing of Solvents Addition of Silicon Final Product Quality Test
  12. 12. 12 Implementation Schedule I take maximum one and half year to implement this project thetime required for completing each activity of the project tillcommercial production is as follows:Sr. No. Activity Time required 1. Preparation of project 1 Month 2. Selection of a site 1 month 3. Registration of SSI 1 month 4. Availability of Finances 3 months 5. Machinery procurement 2 months 6. Construction of factory 5 months 7. Erection and commissioning 15 days 8. Trial run 15 days 9. Recruitment of Labour 2 months
  13. 13. 13 Fixed Assets Fixed Assets1) Land & Building: Particulars Area Rate Amount(Rs.) Land 2500 sq. yards 800 20,00,000 Building 4000 sq. feet 250 10,00,000 Total 30,00,0002) Plant and Machinery: No. Particulars Units Rate Amt.(Rs.) 1. Varnish Kettle 500 lts. Cap. 2 80,000 2. Storage Vessels 1000 lts. Cap. 2 30,000 3. Furnaces (coal/wood fired) 2 12,000 4. Weighting Scale 100kg cap. 1 15,000 5. Thermometers, sealing machine - 13,000 Total 15,00,0003) Other Fixed Assets:
  14. 14. 14 No. Particulars Units Rate Amt. (Rs.) 1. Delivery Van 2 2,50,00 5,00,000 0 2. Computers 4 25,000 1,00,000 3. Furniture - - 2,00,000 Total 8,00,0004) Preliminary and Pre-operating exp.: Particulars Amt. (Rs.) Preliminary exp. 60,000 Pre-operating exp. 40,000 Total 1,00,000 Total Fixed Assets No. Particulars Amt. (Rs.) 1. Land and Building 30,00,000 2. Plant and Machinery 15,00,000 3. Other Fixed Assets 8,00,000 4. Preliminary exp. 1,00,000 Total 54,00,000
  15. 15. 15 4. Skilled workers 2 5,000 10,000 (100% Variable) 5. Unskilled workers 4 4,000 16,000 (100% Variable) 6. Watch man 1 1,000 1,000 7. Sales Executives 5 3,000 15,000 Total 67,000 Working Capital1) Raw Materials: (Per month) No. Name Quantit Rate Amt. (Rs.) y 1. Oil Soluble Pure 1700 lts. 70/lts. 1,19,000 2. D.C.O. stand Oil 3000 lts. 40/lts. 1,20,000 3. Mineral Turpentine oil 7000 lts. 15/lts. 1,05,000 4. Butyl Alcohol 550 kgs. 40/kgs. 22,000 5. Silicone Resin 80 kgs. 5/kgs. 400 6. Driers No. of 190 kgs. 90/kgs. Amt.(Rs.) 17,100No. Type of Staff Rate 7. Packaging Material Persons - 30,000 Total 4,13,500 1. Manager 2 7,000 14,000 2. Manager-cum-chemist 1 8,000 8,000 3. Clerk 1 3,000 3,000 3. Peon 3 1,000 3,0002) Salary and Wages: (Per month)
  16. 16. 163) Utilities: (Per month) No. Particulars Amt. (Rs.) 1. Power/Electricity 12,000 2. Fuel (coal/wood) 7,000 3. Water 1,000 Total 20,000 Fixed 40% 8,000 Variable 60% 12,0004) Other Expenses: (Per month) No. Particulars Amt. (Rs.) 1. Postage and Telegram 1,000 2. Telephone 2,000 3. Rent 5,000 4. Advertisement 12,000 5. Repairs and Maintenance 10,500 6. Transport charges 8,000 7. Insurance 8,000 8. Miscellaneous exp. 3,000 9. Contingency exp. 7,000 10. Stationery exp. 6,000 Total 62,500 Total Working Capital Per Month No. Particulars Amt. (Rs.) 1. Raw Materials 4,13,500 2. Salary and Wages 67,000 3. Utilities 12,000 4. Other expenses 37,500
  17. 17. 17 Total Working Capital 5,30,000Total Working Capital for 3 Months and 1 Year 1 Month 3 Months 1 Year 5,30,000 15,90,000 63,60,000 Total Projected Fund
  18. 18. 18No. Particulars Amt. (Rs.)1. Fixed Capital 54,00,0002. Working Capital (3 months) 15,90,000 Total 69,90,000 Sources of Capital Capital Required = 69,90,000
  19. 19. 19 60% Owned Capital = 41,94,000 40% Borrowed Capital = 27,96,0001) Owned Capital: Partner’s Name Investment Rate Interest Chauhan Niraj M. 13,98,000 8% 1,11,840 Navnit Dhorajiya 13,98,000 8% 1,11,840 Barmeda Sandip V. 13,98,000 8% 1,11,840 Total 41,94,000 - 3,35,5202) Borrowed Capital: Capital Interest Banks Rate Borrowed Amt. GSFC 22,60,000 13% 2,93,800 ICICI 5,36,000 15% 80,400 Total 27,96,000 - 3,74,2003) Loan Repayment Schedule:a) Loan of GSFC to be repaid within 5 years: Opening Closing Years Installment Interest Balance Balance 1st Year 22,60,000 4,52,000 2,93,800 18,08,000 2nd Year 18,08,000 4,52,000 2,35,040 13,56,000 3rd Year 13,56,000 4,52,000 1,76,280 9,04,000
  20. 20. 20 4th Year 9,04,000 4,52,000 1,17,520 4,52,000 5th Year 4,52,000 4,52,000 58,760 - Total 8,81,400b) Loan of ICICI to be paid within 2 years: Opening Closing Years Installment Interest Balance Balance 1st Year 5,36,000 2,68,000 80,400 2,68,000 2nd Year 2,68,000 2,68,000 40,200 - Total 1, 20,600 Fixed CostA) Interest of Capital: (Per Year) No. Type of Capital Interest
  21. 21. 21 Amt. (Rs.) 1) Ownership Capital 3,35,520 2) Borrowed Capital 3,74,200 Total 7,09,720B) Depreciation: (Per Year) Amt. No. Particulars Rate Depreciation (Rs.) 1. Land & Building 30,00,000 10% 3,00,000 2. Machinery 15,00,000 25% 3,75,000 3. Computer 1,00,000 60% 60,000 4. Furniture 2,00,000 15% 30,000 5. Delivery Van 5,00,000 40% 2,00,000 Total 9,65,000C) Maintenance and Repairs: (Per Year) No. Particulars Value Rate Amt. 1. Building 10,00,00 5% 50,000 0 2. Machinery 15,00,00 5% 75,000 0 3. Other Fixed Assets 8,00,000 5% 40,000 Total 1,65,000
  22. 22. 22D) Other Fixed Cost: (Per Year) No. Particulars Amt. 1. Utilities 96,000 2. Salary 4,92,000 3. Other expenses (40%) 3,00,000 Total 8,88,000 Total Fixed Cost No. Particulars Amt. 1. Interest on Capital 7,09,720 2. Depreciation 9,65,000 3. Repairs and Maintenance 1,65,000 4. Other Fixed Cost 8,88,000 Total Fixed Cost per year 27,27,720 Cost of Production Interest No. Type of Capital Amt. (Rs.)
  23. 23. 231) Total Fixed Cost 27,27,7202) Working Capital (1 year) 63,60,000 Total 90,87,720 Cost Per Unit Cost Per unit = Cost of Production Production P.A. in lts. = 90,87,720
  24. 24. 24 1,50,000 = 60Rs. Cost Per Pack Cost PerNo. Particulars Unit1. 20 lts. Wire enamels packing 1200.00 Rs.2. 10 lts. Wire enamels packing 600.00 Rs,3. 5 lts. Wire enamels packing 300.00 Rs.4. 1 lts. Wire enamels packing 60.00 Rs.Projected Cost of Production Statement Cost of Production for 3 years
  25. 25. 25 Particulars 1st Year 2nd Year 3rd YearInstalled Capacity of Wire 2,14,280 2,14,280 2,14,280Enamels ( in lts.)Capacity Utilization 70% 80% 90%Produced Capacity 1,50,000 1,71,420 1,92,850Variable Expenses:Raw Materials 49,62,000 54,58,200 59,54,400Wages (variable) 3,12,000 3,43,200 3,77,520Utilities 1,44,000 1,58,400 1,72,800Other expenses 4,50,000 5,00,000 5,50,000A) Total Variable Cost 58,68,000 64,59,800 70,54,720 Variable Cost Per Unit 39 37 35 Fixed Expenses: Depreciation 9,65,000 7,20,750 5,57,215 Maintenance and repairs 1,65,000 1,65,000 1,65,000 Other fixed Cost 8,88,000 8,88,000 8,88,000 Interest: # Bank loan 3,74,200 2,75,240 1,76,280 # Ownership Capital 3,35,520 3,35,520 3,35,520 Salary 4,92,000 4,92,000 5,10,000 B) Total Fixed Cost 32,19,720 28,76,510 26,32,015 Total Cost of Production 90,87,720 93,36,310 96,86,735 (A+B)
  26. 26. 26 Total Cost Per lts. 60.00 55.00 50.00 Sales Price of Wire Enamels Cost Sales Price No. Particulars Per unit Per unit1 10 lts. Enamel 600.00 690.00
  27. 27. 272. 5 lts. Enamel 300.00 345.003. 1 lts. Enamel 60.00 69.00 Expected Sales Expected Sales of MBA Enamels for the year
  28. 28. 28 Sales Per Amt. No. Particulars Month (units) (Rs.)1. 10 lts. Enamel 1,000 6,90,0002. 5 lts. Enamel 550 1,89,7503. 1 lts. Enamel 450 31,050 Total 9,10,800 Sales Per Year : 9, 10, 800 × 12 = 1, 09, 29, 600 Profit Calculation Calculation of Profit of MBA Enamels Particulars Amt.(Rs.)
  29. 29. 29 Sales 1,09,29,600 Less: Variable Cost 58,68,000 Contribution 50,61,600 Less: Fixed Cost 32,19,720 Profit Before Tax 18,41,880 Less: 35% Tax 6,44,660 Profit After Tax 11,97,220 Return on InvestmentReturn on Investment : = Profit after Tax × 100 Cost of Project
  30. 30. 30 = 11, 97, 220 × 100 69, 90, 000 = 17.12 Cost of CapitalCost of Capital:
  31. 31. 31 = Total Interest × 100 Total Capital Employed = 7, 09, 720 × 100 69,90,000 = 10.15 Cost Sheet Cost Sheet of MBA Enamels Amt. Amt.Particulars Amt. (Rs.) (Rs.) (Rs.)
  32. 32. 32Raw Materials Consumed:Opening Stock of Raw materials - -+ Purchases - 49,62,000- Closing Stock - 10,52,000Total Raw Materials Consumed 39,10,000Direct Wages: Skilled (5000×2) 10,000 Unskilled (4000×4) 16,000 3,12,000Utilities 20,000 2,40,000 5,52,000Prime Cost 44,62,000Factory Overheads:Salary: Manager (1) 8,000 Watchman (1) 1,000 1,08,000Insurance of Machinery 96,000Repairs and Maintenance 1,26,000Depreciation: Machinery 3,75,000 Building 3,00,000 6,75,000 10,05,000Factory Cost 54,67,000Administrative expenses:# Salary: Manager (1) 7,000 84,000 Clerk (1) 3,000 36,000 Peon (3) 1,000 36,000Stationary 6,000 72,000Rent 5,000 60,000Postage & Telegram 1,000 12,000Miscellaneous expenses 3,000 36,000Contingency expenses 7,000 84,000Telephone Charges 2,000 24,000Depreciation: Furniture 30,000 Computer 60,000 90,000
  33. 33. 33Interest on owned capital 3,35,520 8,69,520Cost of Production 63,36,520+ Opening stock of finished goods- Closing stock of finished goods 1,33,000 1,33,000Cost of goods Sold 64,69,520# Salary: Manager (1) 7,000 84,000Sales Executives (5) 3,000 15,000Advertisement expenses 12,000 1,44,000Transport Charges 8,000 96,000Depreciation: Delivery Van 2,00,000 5,39,000Cost of Production 70,08,520Total Sales 1,09,29,600Profit 39,21,080 Operating Statement Projected Operating Statement Particulars 1st Year 2nd Year 3rd Year Sales Per Year 1,09,29,60 1,22,60,00 1,28,48,000
  34. 34. 34 0 0Factory expenses:Raw Materials 63,60,000 64,60,000 64,80,000Utility 1,44,000 1,44,000 1,44,000Salary 1,08,000 1,08,000 1,16000Wages 3,12,000 3,50,000 3,92,000Insurance of Machinery 96,000 96,000 96,000Repairs and Maintenance 1,26,000 1,36,000 1,46,000+Opening Stock of Raw materials - 10,52,000 11,42,000-Closing Stock of Raw materials 10,52,000 11,42,000 12,53,000+Opening stock of finished goods - 1,33,000 1,83,000-Closing Stock of finished goods 1,33,000 1,83,000 2,20,000Cost of Operations 59,61,000 71,54,000 72,26,000Gross Profit 49,68,600 51,06,000 55,22,000Indirect Expenses:Preliminary expenses 25,000 25,000 25,000Salary 3,84,000 3,84,000 3,84,000Other expenses 4,50,000 4,75,000 5,00,000Fixed Cost 8,59,000 8,84,000 9,09,000Less: Depreciation 9,65,000 7,20,750 5,57,215EBIT 31,44,600 35,01,250 40,55,785Less: Interest on loan 3,74,200 2,75,240 1,76,280EBT 27,70,400 32,26,010 38,79,505Less: 35% Tax 9,69,640 11,29,100 13,57,830EAT 18,00,760 20,96,910 25,21,675Add back: Depreciation 9,65,000 7,20,750 5,57,215Preliminary expenses 25,000 25,000 25,000Net Cash Accrual 27,90,760 28,42,660 31,21,890
  35. 35. 35 Manufacturing Account Manufacturing account of the MBA EnamelsDr.Cr. Particulars Amt. (Rs.) Particulars Amt.(Rs.)To, By,Purchase of Raw 49,62,000 Sales 1,09,29,600MaterialsWages and Salary 4,20,000
  36. 36. 36Utilities 1,44,000 Closing Stock:Repairs 1,26,000 Raw Materials 10,52,000Depreciation 9,65,000 Finished Goods 1,33,000Insurance 96,000Gross Profit 54,01,600 1,21,14,60 1,21,14,600 0 Profit and Loss Account Profit and Loss Account of MBA Enamels For the year ending 2009-10 Particulars Amt. (Rs.) Particulars Amt.(Rs.)To, By,Salary 3,96,000Stationary 72,000 Gross Profit 54,01,600
  37. 37. 37Post and Telegram 12,000Miscellaneous exp. 36,000Contingency 84,000expenseRepairs 1,26,000Depreciation:Furniture 30,000Computer 60,000Delivery Van 2,00,000Telephone 24,000Advertisement 1,44,000Rent 60,000Transport 96,000Interest on Capital 7,09,720Net Profit 33,51,880 54,01,600 54,01,600 Profit and Loss Appropriation Account Profit and Loss Appropriation Account Of MBA Enamels for the year 09-10
  38. 38. 38 Particulars Amt. (Rs.) Particulars Amt.(Rs.) To, By, Tax paid 35% 9,69,640 Net Profit 33,51,880 General Reserve 2,85,900 Divisible Profit 20,96,340 33,51,880 33,51,880 Balance Sheet Balance Sheet of MBA Enamels for the year ending 09-10Particulars Amt. (Rs.) Amt. (Rs.) Amt. (Rs.)Capital & Liabilities:Owners capital:a) Chauhan Niraj M. 13,98,000
  39. 39. 39 +Profit 6,98,780 20,96,780b) Pabari Brijesh 13,98,000 +Profit 6,98,780 20,96,780c) Barmeda Sandip V. 13,98,000 +Profit 6,98,780 20,96,780+Interest on Capital 3,35,520 66,25,860Bank Loan 27,96,000+Interest on Loan 7,09,720 35,05,720Creditors 22,92,860General Reserve 2,85,900 2,85,900 Total Liabilities 1,27,10,340Assets:Gross Block 53,00,000Depreciation 9,65,000 43,35,000Sundry Debtors 62,90,340Cash and Bank 9,00,000Total Closing stock 11,85,000 Total Assets 1,27,10,340 Ratio AnalysisProfit Value Ratio: = Contribution × 100 Sales = 50,61,600 × 100 1,09,29,600
  40. 40. 40 = 46.31% B.E.P = Fixed Cost × 100 Contribution = 27,27,720 × 100 1,09,29,600 = 24.95%Net Profit Ratio: = Profit after tax × 100 Sales = 11,97,220 × 100 = 10.95% 1,09,29,600 Future Plans The future plans of the MBA Enamels will be after successof the wire enamels to be launched in the market. The company alsohas some plans and the market potentialities to get into another marketof the oil paints and various other ranges of enamel products. We would also like to cover other bigger regions of Indiastarting from Mumbai, Delhi as we would get a larger market. Lastly
  41. 41. 41we would like to increase the demand and if necessary productioncapacity also in order to get into the wider and wider market and ifsuccessful we will move towards the international market also.

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