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Ekram business plan


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Ekram business plan

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  3. 3. dEcLARATON I undersigned MUNSHI MD.EKRAM I.., the student of 3rdsemester MBA of N.R.V.I.B.M.S, Gujarat Technological University,Ahmadabad, here, I declared that the project work present in this report ismy own work and has been carried out under the supervision guidance of theprofessor and principal of N.R.V.I.B.M.S. Junagadh This project work is not submitted to any other university forany other examination purpose. I have tried my level best to include allinformation in this report.PLACE :_____________DATE :_____________ Your’s Faithfully (MUNSHI MD.EKRAM I.) M.B.A. SEM (III) ROLL NO’ :- 50 3
  4. 4. PREFAcE Indian Management scenario seemed to be mixed hopes at thecommencement of the nineties. Most of the small scale industries in thecountry are handicapped. There is an accurate need for substituting thetraditional management techniques by newly developed system ofmanagement. It is suggested to undergo such training to manage the businessunit efficiently right from its inception and avoid the national losses.Keeping in view the central ideas and objectives, Gujarat TechnologicalUniversity has introduced the subject “New Enterprise and InnovationManagement”. The main object of this subject is to develop the skill in theproblem solving and decision making in management of small scalebusiness. In lights of above objectives. The students are required toprepare a project report on selected products. So, I am glad to submit aproject report. 4
  5. 5. AcKNOWLEdGEMENT This Business plan is a part of the subject “New Enterprise andInnovation Management”. I am glad to submit to this report which includesthe practical aspect of the industrial study. I am happy to expressed to mydeepest gratitude to all person who spend their valuable time and help me alot in preparing of this project work. A successful challenge of visit to anyindustry gave me a chance to transfer it into a result. I oblige Gujarat Technological University for providing mewith a valuable opportunity to undertake surveys of small scale industry andI also thankful to introduce me to a new horizon in the Entrepreneurshipsskills. I am thankful to Dr Rajesh Patel for guiding me towards successfulpreparation of this project. I would like to express my opportunity to myfriends and all people who have directly or indirectly help me in this projectwork, Date: Place: JUNAGADH Student Sign 5
  8. 8. 1.Executive Summary A Business plan any plan that works for a business to look achedAllocate resources focus on key point and prepare for problem andOpportunities. Business plan is a written document prepared by the entrepreneur thatdescribes all the relevant external and internal exempt involved in a startingnew venture. It is often an integration of functional plans such as marketing,Finance plans manufacturing, and human resources. Business plan should bePrepared by , however they may consult with many other sources in itspreparation. In its also known as project plans. In todays sinario concerning that each and every company can enterinto market so, competition is high in todays world. 8
  9. 9.  AIMS & OBJECTIVES Last year the doors to 898,000 new businesses opened in the UnitedStates for the first time. Most of these businesses were created byentrepreneurs who envisioned an opportunity to develop a new product orservice, and pursued that vision in search of independence and financialreward. While these visionaries started with solid ideas to form thefoundation of their new ventures, most do not have many of the skillsnecessary to transform their ideas into reality. Additionally, the scarcity oftalent in todays market makes it extremely difficult for small businessowners to attract and retain those skills. 9
  10. 10.  Key to success factors :- The main reason behind this sugar free sweets to maintain health and eattesty sweets person to any other fear to establish in a rural masses topurchase product which has no eat product because of fear of any illness and also we can say that Corporate Fitness will serve Seattle-areabusinesses, helping them to become more productive, while lowering theiroverall costs.Our business is based on two simple Objectives:1. Healthy employees are more productive than chronically ill employees.2. It costs less to prevent injuries or illnesses than to treat them after they occur. At Corporate Fitness, we tie worker productivity directly to the healthcare issue. We believe that traditional approaches to the current health carecrisis are misdirected. These traditional efforts are what we call reactive—that is, they wait until after the worker has been stricken with illness orinjury, and then pay for the necessary treatments. Our approach, whichemphasizes prevention and good health promotion, is much more proactive. 10
  11. 11. 1.Company profile :- Company Summary :- Joy Suger free sweets is based on the belief that healthy employeesare more productive and efficient employees. For this reason, it provideswellness strategies/programs to businesses in the downtown Seattlearea.This combines promotion of health and exercise-related activitiesdesigned to facilitate positive lifestyle changes in members of a companysworkforce. The company began in Seattle, founded by three owners, all ofwhom hold director positions. Company ownership :- JOY SUGAR FREE SWEETS is a privately held corporation. Thetwo founderscomprise all of the ownership.• MUNHI MD.EKRAM I.• MUNSHI MOIN 11
  12. 12.  Project At A Glance :-Name of the unit:-1 Joy Dairy FarmAddress for communication:- “Joy dairy form” 6, Jagnath plot, Dr. rajkot road, JunagadhType of the Unit Partnership firmLocation of the unit:- “Joy dairy form” Mavdi main road, Opp. Naviwala building, JunagadhName of the Product:- Sugar free sweetsPartner’s name:- MUNSHI MD.EKRAM I. MUNSHI MD.MOINBrand name:- “Joy dairy form” 12
  13. 13.  Biodata Of partners :- Biodata Of Partner :- 1Name:- MUNSHI MD.EKRAM I.Address:- " MUNSHI MD.EKRAM I." SEM APARTMENT, Dr. rajkot road, JunagadhEducation qualification:- M.B.A with marketingAge:- 23 yearsFinance contribution:- 50%Role in Unit:- Managing finance and marketing 13
  14. 14. Biodata of Partner:- 2Name:- MUNSHI MD. MOINAddress:- "BISMILLAH APARTMENT" B/35 shroff road JUNAGADHEducation qualification:- M.B.A., & B.Ed.Age:- 27 years oldExperience:- 2 yearsFinance contribution:- 50%Present activity:- Management and study for C.A.Role in the unit:- Managing production and human resource department 14
  15. 15. 2.PRODUCT :- “Sugar free sweets”, the name itself suggests that they givesweetness to those people whom sweets are for away to reach the products ismade for diabetics and diet conscious people. The concept of sugar-free sweets come into the Junagadh before 3years. This is the segment where only a few competitors and great potentialfor expansion. We have done search and surveys for check in the demandand trend of the people towards sweets and from them sugar-free sweets andwe came to know that only 20% consumers prefer sugar-free sweets in thegeneral time or in occasions. But by considering today increased number ofdiabetic patients and the awareness among the people, we found and larger& great market for the same. 15
  16. 16. We want to start sugar-free sweets for diabetic patients with the mottoof serving society and better and profitable way than the competitors. Wehave entered in riche market the initial launching strategy of use will itselfour products quality i.e. delicious test convenient packaging, superiorquality, and nutrition, affordable price on time delivery or quick delivery. We will produce many products based on & main ingredients i.e. date,fig and black raisins. The various products are made from it and other ingradients like cashew coconut powder, pista, almond and many more eachproduct changes comparatively high price than the general & commonsweets before all are made from dry fruits. 16
  17. 17. The products produced & their rate of each product given below Items Items Rate (per kg.) Dry Fruits Roll Cut 400 Angir Kasata 320 Angir Dry Fruit Halva 160 Angir Roll 400 Kayce Anger Roll 300 Manpasand 320 Sangam Slice 150 Angir Slice 160 Angir Badam Halva 220 17
  18. 18.  Details Of Raw Material :- Raw material is the precondition for production function. Qualitativeraw material effective processing and proper maintenance are milestones forefficient production. The main raw materials required for preparing sugar free sweets are asfollows 1Date 2Ghee 3Cashew 4Almond 5Fig 6Pista 7Black raisins 8Coconut powder 18
  19. 19. And also other required materials are1Paper boxes2Plastic packets3Plastic papers4Containers (for loose selling) 19
  20. 20.  Basis & Presumption :- 1.It had been taken into consideration that the unit will work for 8 hours a day for 300 days in a year. In case of emergency the overtime will be carried out as the production is based on orders. 2.To achieve full plant capacity the trial production will be carried out for 15 to 20 days and by taking 6 to 7 samples. 3.Labor and wages mentioned as per the prescribed minimum requirement of them 4.Interest rate at 9% for fixed and 13% for working capital is considered in the project profile 5.Margin of money will very from 30 to 35% depending upon the labor and raw material available to the firm. 6.The costs of land, construction, charges, machinery and equipments, raw materials and consumables, other expenses etc indicated in the profile are based on those prevailing at the time of preparation therefore they are subject to necessary changes from time to time based on local conditions. 20
  21. 21.  Organization Structure :- Organization is a group of people working together cooperativelyunder authority toward achieving and objectives that manually benefit theparticipants and organization. The superior subordinate relationships are defined by organizationcharts, which are formal documents that indicate the chain of command andtitles that have been assigned to the managers and other personnel. 21
  22. 22.  Implementation Schedule :- Implementation schedule means actual time required to start theproduction process. The major activities in the implementation of the projecthave been listed & systematic implementation of project may take around 11to 12 months for completion.Sr. No. Activities Time Period1 Survey for collection of data in respect 2 months of demand, raw material, including power and fuel availability of technology, pollution control2 Arrangement for margin money 1 month3 Preparation of project document and 1 month Registration4 Financial assistance 2 months5 Selection of site & development of land 2 months6 Make shift office 12 months7 Electricity, fuel and water tying up for 2 months availability8 Selection of machines and procurement 1 month9 Selection of raw material and 8 days procurement10 Recruitment of staff and labo 15 days11 Registration for SSI 15 days12 trial production 20 days 22
  23. 23.  Location Justification :- In recent years the concept of industrial location has received muchimportance & closer attention for any newly started manufacturing business.Location of any industry pays a dominant role in success for failure of thecompany. Only best selected location on one side can earn variety of benefit andany mistake in selection of location on the other side can result into a greatloss. Therefore before selection of the plant location promoters have tocheck the various have to check the various alternative locations in terms ofloss contribution and environment too.Availability Of Raw Material All the required raw materials are easily available locally at marketrate for preparing sugar free sweets at proposed location. 23
  24. 24. Proximity To The Market: Proximity to the market means nearness to the market. Frommarketing point of view, we have very enrich and expanding market for ourproducts. The most important benefit of nearness to the market is you canclosely be attached with the current market position of demand, products,competitors, price, consumer beliefs and attitudes towards the products andmany more: we have selected our location on mavdi main road where thepenetration of dairy prodeucts is lesser and only competitors of suger-freesweets in rajkot. So we have a very good market as rajkot is the centre forsaurashtra and a highly developing city. We have a highly developing city.We can create, maintain and develop the demand easily and profitably.Many hotels are also consuming the sweets so, the large and beneficialpotential is found out.Availability Of ManpowerManpower is the heart to run any kind of activities. For effective running ofany firm and activating maximum production & to have at least cost, labor isrequired. All skilled and unskilled manpower can easily be obtained near bythe area at cheaper rate and also with the basic required knowledge tooperate. 24
  25. 25. Availability Of Manufacturing ServicesManufacturing services are the core necessity for efficient and effectiveproduction. Water electricity and other infrastructure facilities are includedin it. As for as our location is concerned water and electricity is easilyavailable for 24 hours at very economical rate and other facilities are alsoavailable easily as it is inclusive in the city. 25
  26. 26. 4.MARKET ASSESSMENT :- Transportation Facilities : By selecting this plant location for sweets will be beneficial more fortransportation mode rate and way we won’t have our own transportationvehicles, the distribution of sweet will be carried out through transportationcontract will private companies. Which are easily available at economic rate.Personal Factory: We have selected this unit because of above all reasons and inaddition, our personal influence for the selection, as we want to develop thisarea by anyway if we can society the society in our earlier stage of business. 26
  27. 27. Other Ancillary Services: Other ancillary services like banking, insurance, technicallyassistance, warehousing etc are easily available at feasible rate.Thus viewing all phases of the location, it seems to be most appropriatelocation for the firm so we considered it as very favorable & ideal locationfor us. 27
  28. 28. 5.SECTORIAL ASSESSMENT: Major Participation :-The main competitors of Joy sugar free sweets are… 1Shiv Shakti Sweets 2Sweet Palace 3Bengal Sweets These are the main competitors providing suger free as well as generalsweets the concept of suger free sweets came on junagadh before 3 years sothere is not keen competition but oligopolistic market competition Competitive Strategy :- 28
  29. 29. To compete with the existing competitors company will createawareness among the people that such kind of qualitative Taylor made andNutritious products are available. Effective advertising through sign boardsHoardings and print ads in various materials effective distribution strategy isbeing adopted Competitive Advantage :- 1The quality of the sweets, 2It’s delicious taste, 3Effective pricing policy, 4Efficient distribution channels. Rivalry & Purchasing Sampel :- The main reason behind this to maintain safe place in market and alsoits another objective is to introduce new product in market. So we can firstthe sample of sweets into prestigious way in a new market. Person canpurchase the sweets we can also provided sample a new launching productso in this way also our product demand is also incising. 29
  30. 30.  List of Suppliers :- 1.Ambika machines, Rajkot Highway, Saverkundala. 2.Rathod machines 6 Mavdi Plot, Junagadh. 3.Gayatri Refrigerator Vanthly Road, Kotecha Chowk, Junagadh. 4.GAS Gujarat Essence. Junagadh. 30
  31. 31. 6.MARKETING AND EXICUTION SYNOPSIS:- Demand Analysis :- The demand of the sugar free sweets in current market specially insaurashtra is 12 % where demand of the general sweet is larger than it butthe future potentially is grater in terms of demand. Specially diabetic peoplewill consume occasionally as well as generally.Supportive Basis For Growth Is Demand:Increase the number of diabetic patients & diet conscious people in thesociety growth rate 10 %Current Consumption PatternProduct are being consumed on routine basis and also occasionally 31
  32. 32. consumption SizeConsumption size for sugar free sweets is comparatively small than generalsweetsPick Points With Reference To DemandFestivals time and marriage seasons. 32
  33. 33.  Segmentation :-The market segmentation of sugar free sweet may be classified as under:Geographical Segmentations: As sugar free sweet made mainly from the dry fruit and purematerials having very high prices so they are consumed by the class peopleliving in 6, Jagnath plot, Dr. rajkot road, Junagadhwith special reference toRajkot only and other regions where the rich people are livingDemographic Segmentation: 1Age group – above 30 years 2Income – high earn 3Personalities- rich & aristocrat personalities 4Social class- higher middle & upper class 5Education- highly educated and well awarded 6Behavioral – well awardedPsychological Segmentation:Beliefs & attitudes – favorable, positive 33
  34. 34.  Pricing Decision :-Objectives 1To earn desirable profit 2To society the society 3To fight with competitors 4To create brand equityInfluencing Factor 1Cost of raw materials 2Cost of production 3Prevailing demand 4Competitors pricePricing Method 1Cost plus pricing 34
  35. 35.  Distribution Decision :-Channel 2Distributors – retailers- end users 3Hotels & restaurants 4Wedding planners 5Event manager  Positioning :-Product positioning] (Note: * The product sugar free sweets are expensive and nutritious for the end users.) By doing comparative study of the above map, we can make out ourclose competitors are sugar free sweets chemical based and sugar free icescream.Brand PositioningThe brand positioning map of the Utsav brand is as follows: 35
  36. 36.  Promotion Decision :-Objective 1Create awareness among mass for sugar free sweet & specially among patients 2Brands awareness 3Brand preference 4Brand loyaltyBudget 5Rs. 10,000 per monthTools 6Signboards, 7Hoardings, 8Printed materials, 9Catalogs, 10Local magazines 11Other materials of social groups. 36
  37. 37. 7. SALES APPROCH :-  Production Process :- For making up of sugar free sweets mainly 3 dry fruits are used for abase i.e. Date, fig & Black grapesPreparation Method To prepare date based sugar free sweets firstly make it seed less thento crush it in mava maker and to fry it on gas stove with pure ghee. Thenafter to cut and sliced the dry fruits according to their name and givenspecification like cashew almond pista and coconut powder etc add to thefried date and again fried it in maska machine then give them differentshapes according to their name & specifications give to them. To freeze themis refrigerator for 3 to 4 hours now date based any item is ready to eat orserve.Date Based The items which are made from the date are:- 1Dry fruit roll cut 2Manpasand 3Sangam sliceThe other fig based and black raisins based items also require the sameprocess as date based 37
  38. 38. Fig Based The main items made from fig based are: 1Angir kasata 2Angir Roll 3Angir Dryfruit halva 4Kaju Angir Roll 5Man pasand 6Angir slice 7Angir badam halva Black Raisins Based 8Dry fruit roll cut 9Kishmis kamal 10Kishmis kasata 11Kishmis roll 12Manpasand 13Sangam katri 14Kaju kishmis etc 38
  39. 39. 8.INTERNET PLAN  Expansion need & milestone :- The modern world is fast growing, it is expanding considerably infood habits. New innovation of yesterday is old for today, it is a past andtomorrow is a present.The following are the future prospects of my unit: 1Expansion in existing tem with different flavors and ingredients 2Expansion in existing market and cover the entire Gujarat. 3Diversifying in other sugar free food items. 4Development of various branches whole over the Gujarat. 39
  40. 40. 9. Financial Plan :- Fixed capital Details (Section - I) (a) Land And BuildingSr. No. Particulars Amount (Rs.) 1 Land : 25,00,000 500 sq. mtrs. @ Rs. 5000 per sq. mtr. 2 Building: 15,00,000 Work shed: 200 sq. mtr. @ Rs. 7500 Storage: for raw material 20 sq. mtrs. And for finished goods 20 sq. mtrs. 3 Furniture: 250,000 Electrification and fixtures 150,000 Total 4,400,000 (b) Machineries & EquipmentsSr. no. Description Qty Price (per unit) Total Price (Rs.) 1 Mava Maker 4 80,000 320,000 2 Dry Fruit Cutter 2 15,000 30,000 3 Maska Machine 1 25,000 25,000 4 Slice Machine 2 20,000 40,000 5 Refrigerator 2 110,000 220,000 Total 11 250,000 635,000 40
  41. 41. (c) Statement Showing Total Fixed CostSr. No. Particular Cost (Rs.) 1 Land building and furniture 4,400,000 2 Machineries and equipments 635,000 Total 5,035,000 Land Building M achine & Equip. 41
  42. 42. Working capital Details (Section - II) (a). Personnel (Per month)Sr. Designation No.s Salary TotalNo.1 Manager 1 7,000 7,0002 Supervisor 2 5,000 10,0003 Accountant 1 4,500 4,5004 Stock Keeper 1 2,500 2,5005 Counter Person 1 3,000 3,0006 Skilled Workers 4 2,200 8,8007 Unskilled Workers 6 1,800 1,800 Total 16 46,600 42
  43. 43. (b) Raw materialsSr. Particular Qty Rate (per TotalNo. (kg.) kg)1 Ghee 30 140 4,2002 Cashew 100 240 24,0003 Almond 70 480 33,6004 Fig 50 280 14,0005 Date 70 35 2,4506 Black Grapes 40 140 5,6007 Coconut 20 75 1,500 Powder8 Pista 20 280 5,600 Total 400 90,950 (c). Utilities (per month)Sr. Particular Total ValueNo.(Rs.) 1. Power – per unit Rs. 4 7000 2. Water 5000 ltrs 2000 3. Gas 125 bottles @ 320 (aprx.) per no. 40000 Total 49000 43
  44. 44. (d) Other expenses (per month)Sr. No. Particulars Value (Rs.)1 Postage & Stationary 5002 Telephone 30003 Repair & Maintenance 20004 Transportation Charges 150005 Advertisement 200006 Insurance 20007 Miscellaneous Expenses 5000 Total 47500 (e). Statement showing total working capital (monthly)Sr. Particulars CostNO.1 Personnel 466002 Raw Materials 909503 Other Expenses 475004 Utilities 49000 Grand Total 234050 49000 Utilities 47500 Other Exp. Raw Material 90950 46600 Per sonnel 0 20000 40000 60000 80000 100000 Cost Bar 2 Bar 3 Bar 4 44
  45. 45. (f) Working capital Requirement (for 3 months) Rs. 2 34 050 X 3 Months = Rs. 7, 02, 150 Total Capital investmentSr. No. Particulars Value (Rs.) 1 Fixed Capital 5,035000 2 Working Capital 7,02,150 Total 57,37,150 45
  46. 46. SOURCES OF FINANCE Sr. Particulars Contributio Value No. n 1 Owned Capital 35% 2008002 2 Borrowed Capital 65% 3729147 Grand Total 5737150 4000000 3500000 3000000 2500000 2000000 1500000 Value 1000000 500000 Contribution 0 Owne d Borr ow e d Capital Capit al Contribution Value  Interest On CapitalSr no. Particulars Rat Value (Rs.) e1 Owned Capital 9% 1807202 Bank loan 12% 447498 Total Interest 628218 46
  47. 47.  Depreciation DetailsSr Particula Gross Rate Depreciat Netno r block ion Block1 Building 1500000 10% 150000 13500002 Furniture 250000 8% 20000 2300003 Machines & 635000 10% 63500 571000 Equipments Total 238500 233500 2151500 0  Cost Of ProductionSR Particulars ValueNO. (Rs.)1 Total requirement of working capital 28086002 Depreciation on Building 1500003 Depreciation on machinery 635004 Depreciation on Furniture 200005 Interest on Bank Loan 4474986 Interest on owned Capital 180720 Total cost 3670318  Sales Turnover (Monthly): 47
  48. 48. Yearly Sales Turn over Sr. Particular Qty Rate Amt no. 1 Date Based 300 500 150000 2 Black Raisins Based 250 600 150000 3 Fig Based 400 550 220000 Total 950 1500 520000 Sales = 520000 X 12 Months = Rs. 62,40,000 Fixed Cost Sr. No. Particulars Value (Rs.) 1 Depreciation on building 150,000 2 Depreciation on furniture 20,000 3 Depreciation on machinery 63,500 4 Interest on bank loan 447,498 5 Interest on owned loan 180,720 6 Insurance 10,000 7 40% Salary & wages 18,640 8 40% Other Expenses 19,000 Total 909,358 Profitability AnalysisParticulars Amount (Rs.) Sales volume 6240000Less: Cost of production [Excluding interest] 3,042,000 48
  49. 49. Earning before Interest & Tax 3198000Less: interest on Capital 628,218 Earning before Tax 2569782Less: income tax at 35% (assumed) 899424 Profit After Tax 1670358 ProftProfitability = ---------- X 100 Sales 936577 = ---------- X 100 = 15% 6240000  Break Even Analysis : Break even analysis is widely used technique to study cost volume 49
  50. 50. profit relationship. The narrow interpretation of the term break even analysisrefers to a system of determination of that level of activity where total costactual total selling price. In nut-shall, BEP means like level of output of sales at which no profitno loss is activated. Break even point for sugar free sweets Fixed CostBEP = ------------------- X 100 Fixed Cost + profit 909,358 = ---------------------- X 100 909,358 + 936577 = 49.26 % 50
  51. 51.  Computation of Ratios : i. Return on Investment Net ProfitROI = ----------------- X 100 Total Investment 936577 = -------------------- X 100 2,737150 = 34.21% ii. Return on Fixed Assets Profit 936577 X 100 = ----------- X 100 = ---------------- Total Fixed Assets 5,035,000 = 18.60% 51
  52. 52.  Risk Factors : For inception of any activity, the risk factor is involved with itself.Risk factor is like living without being born. So, before starting anyorganization or unit the entrepreneurs have to keep in mind the weak as wellas threatening feets of the firm.The risk factors involved with Utsav Dairy Farm may as follows: 1The demand of the products may not be generated as predicted. 2The firm will have to face strong competition. 3The promoters of the firm are not much experienced in the field of entrepreneurship and in the food items. 4Consumers will not be got much well aware about the products. 5In the very first year the company may face loss. 52
  53. 53. P&l account for 3 years Particular 1st Year 2nd Year 3rd YearSales 6240000 6864000 7550400Net Sales / Income (A) 6240000 6864000 7550400Manufacturing Exp.:Raw Materials 1091400 1200540 1320594direct wages 265200 291720 320892Utilities 588000 646800 711480Repairs & Maintenance 24,000 26400 29040Total Manu. Exp. (B). 1968600 2165460 2382006Gross Profit (A-B) (C) 4271400 4698540 5168394Adm. Selling Exp.Telephone 36,000 39,600 43,560Postage & Stamp Duty 6,000 6,600 7,260Miscellaneous Exp. 60,000 66,000 72,600transport exp. 15,000 16,500 18,150Salary 294000 323,400 355,740Depreciation 2151500 2,366,650 2,603,315Insurance 24,000 36,000 36,000InterestOwn Capital 190720 190720 190720Borrowed Capital 447498 447498 447498Total Adm. Ex. (D) 3,224,718 3,492,968 3,774,843Operating Profit (C-D) 1,046,682 1,205,572 1,393,551(Less) Tax 110,105 421,950 487,743 53
  54. 54. Balancesheet for 3 years Particulars 1st Year 2nd Year 3rd YearCapital LiabilityOwn Capital 2008002 2008002 2008002(+) Int. on Capital 688218 688218 688218(+) Net Profit 936577 783622 905808 3632797 3479842 3602028Borrowed Loans 3729147 3729148 3729149Creditors 250000 270000 260000Total 7611944 7478990 7591177Property AssetsFixed Assetsland & Building Less Dep. 1500000 1350000 1215000Machine Less Dep. 635000 571500 514350other fixed assests less dep. 250000 230000 211600debtors 702150 1167665 1167665Cash and bank 4,524,794 4,159,825 4,482,562Total 7611944 7478990 7591177 Cost sheet for 3 years 54
  55. 55. Particulars 1st year 2nd year 3rd yearRaw Material ConsumedOp. Stock of Raw Material -Purchase 1091400 1200540 1320594Cost of R.M. Consumed 1091400 1200540 1320594Direct Wages 265200 291720 320892Utilizes 588000 646800 711480Prime Cost 3036000 2139060 2352966Factory OverheadSalaries 294000 323400 355740Dep. On Building & Machine 150000 165000 181500Maint. & Repairs of Machine 24000 26400 29040Work Cost. 3504000 2653860 2919246Office / Adm. OverheadTelephone 36,000 39600 43560Postage & Stamp Duty 6,000 6600 7260Insurance 24,000 26400 29040Mis. Expenses 5,000 5500 6050Interest on Cap. 688218 757039.8 832743.78Depre. On other fixed Asset. 20000 18400Cost of Production 4,283,218 3,507,400 3,837,900Selling & Dist. Overheadstransport exp. 15000 16500 18150 5,888,81 6,377,85 6,922,277Cost of Sales. 4 2Sales 6270000 6897000 7586700Profit 381,186 519,148 664,423 10.Conclusion To end up the discussion, since the starting of the project with the selection of the sugar free sweets for a new segment of consumers with 55
  56. 56. thegreater potentially. This is my pleasure to put this report before the University forlaunching the “sugar free sweet”. As a promoter of this unit, I have madeall the required efforts for the successful launching of all products. I hopethat the sugar free sweets will be successes in the market and specially mybrand, “Joy Sugar free sweets”. The main aim of mine for launchingthis kind of product is just to societal the society by providing best qualityproducts for the diet conscious and diabetic patients. Govt. should support these kinds of small scale units to serve thepublic with qualitative food items. I also want to help in generation ofemployment opportunities and to raise standard of living. At least I am again very thankful to all of the concerned people whohelped me in preparing this report. This is also true for me as I thought myreport could express my thoughts & researches for sugar free sweets. It wasa great experience that I might want to deal in future. That’s all it will begreat opportunity for every student. 56
  57. 57. BIBLIOGRAPHY Entrepreneurship – VASANT DESAI. 57