INTRODUCTION             All small scale industry forms the back born of Indian BusinessScenario. The SSI have substantial...
PROJECT AT A GLANCEName of the unit          :-   Angle Pvt. Ltd.Address for communication :-   307,Vitbhavan,            ...
BIO-DATA OF PARTNERS                       Partner - 1Name             :-    Vruta N. PatelAddress          :-    7, Ranch...
Partner - 2Name              :- Navinbhai K. PatelAddress           :-    7, Ranchhodvadi                        Block No....
ORGANIZATION STRUCTURER                                     PARTNERS                           Management Representative  ...
Most important thing to consider is the location of unit. It isimportant for any firm to decide where the unit should be e...
Market Analysis            There is very good market for their product in our country. Themarket for consumer goods is exp...
IMPLEMENTATION OF SCHEDULESSI Registration                     -     10 daysAcquisition of land & building -           90 ...
RAW MATERIALBasic Raw-material:-(a) Stainless Steel AISI - 420(b) Polypropylene(c) Thermoplastic elastomer rubber(d) Stain...
LIST OF MACHINERY & EQUIPMENTSNo.         Particulars             Value1.    Power Press Machine           3,00,0002.    S...
MANUFACTURING PROCESSThe production process is as follows :-          Firstly, strips of various sizes are cut from stain...
BASIS AND PRESUMPTION It is presumed that there will be 300 working days in a year. Work will be done in single shift. ...
Staff & Workers Details   Particulars                  No.   Chief Executive              2Manager (Production)           ...
FINANCIAL DETAILS                      Fixed CapitalParticulars                           AmountLand                      ...
Raw MaterialsParticulars                       Qty.                   Price        Amt                            (K.G.&P....
Utilities      Power                   58,000      Fule                     7,000                           Total Producti...
Other OverheadsParticulars                              AmountAdvertising                               8,000Posting & Sta...
Working Capital   Particulars                 AmountRaw Materials                  2,50,000Salary & Wages                 ...
Sources of FinanceParticulars               Amount      AmountPromoter’s ContributionPartner 1 (50 %)          20,00,000Pa...
Cost of ProductionParticulars         1st Year    2ndYear     3rdYearRaw Materials       30,00,000   36,00,000   42,00,000...
Cost of Capital                    stParticulars        1 Year       2nd Year   3rd YearSales              75,00,000    90...
Depreciation                          BuildingCost Price                20,00,000Less: 15% dep.            3,00,000At the ...
Cost Per UnitParticulars                  AmountTotal Variable cost          Rs. 41,16,000Total Fixed cost             Rs....
Break Even AnalysisContribution        = Selling price – Variable cost per unit                    = 50 – 26.38           ...
Interest & Repayment of LoanLoan from SBI @ 11.5%                  1st               2nd         3rdInstall.          8,00...
Cost of CapitalCost Of Capital :      =     Int. on own cap. + Int. on borrowed cap.                         Total Capital...
Return of investmentReturn on    = Earning Before Interest & Tax x 100Investment         Total Capital Investment       = ...
NAME & ADDRESS OF SUPPLIERS OF      RAW MATERIAL AND MACHINERY                                Raw Material(1) Stainless St...
(4) Stainless Steel RivetsKundan Industries Ltd.,Kundan House,Harshiddhi Estate,Goria Pada,Near Waliv Telephone Exchange,V...
(4) Power Searing machineG.S. Industries,1/4, Maudi Plot,Opp. Kishara Oil Mill,Rajkot – 360 004(5) Buffing Polishing machi...
(8) Auto Moulding machineSamrat Engineering,Opp. Bombay Conductor,Vatva,Ahmedabad(9) Oil Fire FurnaceThermochem Metod Trea...
Balance SheetSources of FundsOwner’s Capital        Partner 1                      20,00,000        Partner 2             ...
Cost SheetParticulars                     Amount         AmountOpening Stock of R.M.           -              -Add: Purcha...
Office ExpensesPostage & Stationery         72,000Accountant                   42,000Chief executive              1,44,000...
Particulars of Raw Materials                Schedule of Raw MaterialsParticulars            Year1       Year2       Year3O...
Schedule For Fixed AssetsSchedule of Written Down Value Of Fixed AssetsParticulars      Gross Block   Depr.       Net Bloc...
Schedule For Factory Overheads          Schedule of Factory Cost for The Three YearsParticulars             Year-1      Ye...
Schedule of Office & Administration Expenses        Schedule of Office & Admn. Exp. For three yearsParticulars            ...
Schedule of Selling & Distribution Expenses    Schedule of Selling & Distribution Exp. For three yearsParticulars         ...
Accounting PoliciesAngel Pvt. Ltd. follows the following accounting policies        • Fix amount of loan repayment every y...
RISK FACTOR       When business unit is started there are many benefit provided to them aswell as there are many risk fact...
A              Business Plan                     On          SCISSORS                Prepared By                Vruta N. P...
A              Business Plan                     On       KHAKHARA                Prepared By             Sonal D. Gondali...
INDEXSr. No.   Particular                                      Page No.   1      Introduction                             ...
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Ruta patel scissors - business plan

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Ruta patel scissors - business plan

  1. 1. INTRODUCTION All small scale industry forms the back born of Indian BusinessScenario. The SSI have substantial scope for increasing employment as they arelabour intensive and require Comparatively less capital. SSI contributessignificantly to social and economic development. So it is said that “Small is Beautiful”. It is comparatively small ininvestment cost as such small enterprises are not only beautiful but alsobeneficial, efficient and reliable. The expansion of service sector providesample opportunity to SSI in this millennium during this past 50 years. For Scissors there is very good market. As small scale industry,this unit will get all the benefits of small scale industry. There is full scope ofexpansion in future for this unit and market will not constrain in overalldevelopment of the unit and fast growth is assured. 1
  2. 2. PROJECT AT A GLANCEName of the unit :- Angle Pvt. Ltd.Address for communication :- 307,Vitbhavan, Gondal Road,Rajkot.Form of Organization :- Partnership FirmName of Promoter :- Vruta N. PatelProduct :- ScissorsSize of the unit :- Small Scale UnitSSI Registration No. :- Applied forLocation of the unit :- Aji Industrial area, Near Kamani foundry, Rajkot - 360 003 2
  3. 3. BIO-DATA OF PARTNERS Partner - 1Name :- Vruta N. PatelAddress :- 7, Ranchhodvadi Block No. 5, “Shivdhara” Near Kuwadava Road, Rajkot – 360 003.Age :- 21 yrs.Qualification :- BBA & MBANature of work :- FinanceDetails of property :- Land & BuildingExperience :- FreshFinancial Contribution :- Rs. 20,00,000/- [25% of total capital] 3
  4. 4. Partner - 2Name :- Navinbhai K. PatelAddress :- 7, Ranchhodvadi Block No. 5, “Shivdhara” Near Kuwadava Road, Rajkot – 360 003.Age :- 50 yrs.Qualification :- B.Sc. B.Ed.Nature of work :- Production & DevelopmentDetails of property :- Land & BuildingExperience :- 2 years of experience in Glare Appliances Pvt. Ltd.Financial Contribution :- Rs. 20,00,000/- [25% of total capital] 4
  5. 5. ORGANIZATION STRUCTURER PARTNERS Management Representative General Manager PROPOSED LOCATION & Finance Production Department Personnel Department Marketing Department Department Finance Mgr Production Mgr Personnel Mgr Marketing Mgr PurchaseAccountants Skilled Labour Tech Supervisor Sales Manager Mgr Semi skilled Labour Salesman Unskilled Labour Peon Watchman JUSTIFICAITON 5
  6. 6. Most important thing to consider is the location of unit. It isimportant for any firm to decide where the unit should be established. A goodlocation provided many advantages and it also reduces the cost of production &distribution which affect overall profitability of a unit. This unit is located at :- Aarti Estate, Near Manda dungar, Behind Aji Dam, Rajkot. Incentivies / Advantages / Justification:-  It is industrial area.  Labor is easily available.  Situated in the Rajkot, so transportation is easily available.  Priority in electricity connection. Proximity to market. MARKET POTENTIAL 6
  7. 7. Market Analysis There is very good market for their product in our country. Themarket for consumer goods is expanding very fast. This unit proposes to produce various types of scissors for variouspurposes. There is no company in organized sector in this line. Many smallunits are manufacturing scissors of low quality items in unorganized sectors. The only major group “Fiskars Group” is producing their product. Hence to conclude the market will not be a constraint in overalldevelopment of the unit and fast growth is assumed. Competitors The competitors of the product is only :-  Fiskars situated at:- By Godrej and Boyce Mfg. Co. Ltd.Pirojshanagar Vikhroli, Mumbai - 400079, INDIA 7
  8. 8. IMPLEMENTATION OF SCHEDULESSI Registration - 10 daysAcquisition of land & building - 90 daysFinance Assistance - 100 daysArrangement of Power - 90 daysAcquisition of Machinery - 10 daysInstallation of Machinery - 100 daysAppointment of Staff - Immediate as per Requirement & Final Recruitment within 15 daysTrial Production - 120 days Thus, time taken for commencement of actual production is around4.5 month. 8
  9. 9. RAW MATERIALBasic Raw-material:-(a) Stainless Steel AISI - 420(b) Polypropylene(c) Thermoplastic elastomer rubber(d) Stainless Steel rivets Packing Raw-material:-(a) Polyvinyl sheets(b) Packing cards printed(c) Corrugated cartoons – Inner Outer The major raw-material in this industry is stainless steel, plasticgranules, thermoplastic elastomer & stainless steel rivets. The stainless steelwill be purchased from Steel Authority of India Ltd. (SAIL), Baroda. Thedelivery time will be 30 days. Plastic granules will be purchased from M/s.Murlidhar polymer, Rajkot. The delivery time will be 3 days. ThermoplasticElastomer will be imported from M/s. Advance Elastomer system LP., USA.The delivery time will be 30 days. Stainless steel rivets will be purchased fromM/s. Kundar Industries Ltd. Thane. The delivery period will be 30 days. 9
  10. 10. LIST OF MACHINERY & EQUIPMENTSNo. Particulars Value1. Power Press Machine 3,00,0002. Surface Grinding Machine 2,40,0003. Taper Grinding Machine & 13,00,000 Ledged Teeth Grinding Mach.4. Power Searing 2,50,0005. Buffing Polishing Machine 2,50,0006. Blister Machine 2,90,0007. Air Compressor Machine 2,60,0008. Auto Molding Machine 4,00,0009. Oil fire furnace 2,10,00010. Lath Shaping, Drill, Bench, Surface Mach. 2,50,000 TOTAL 40,00,000 10
  11. 11. MANUFACTURING PROCESSThe production process is as follows :-  Firstly, strips of various sizes are cut from stainless steel sheet with help of shearing machine.  Then, blanking is done of various sizes with the help of various types of dies on power press machines.  When all various types of blades are bunched and on them hardening and tem hardening and tempering are done on furnace shop.  Then after all blades are cleaned and washed with hot water and cleaning chemical.  Then buffing & polishing is done.  Then edging is done which is followed by inspection.  Inspected blades are moulded with various types of handle moulds.  Then, moulded blades are bended as per requirement.  Then, riveting is done.  At last washing, inspection and packing is done. 11
  12. 12. BASIS AND PRESUMPTION It is presumed that there will be 300 working days in a year. Work will be done in single shift. Salary will be at prevailing rate. Time need for 100% utilization is after 5 years. No. of Working Hours Per day will be 8 hours. Production capacity will be installed of 2,50,000 pieces p.a. 12
  13. 13. Staff & Workers Details Particulars No. Chief Executive 2Manager (Production) 1 Manager (Marketing) 1Skilled Workers 5 Unskilled Workers 3 Accountant 1 Store & Dispatch Clerk 1 Clerical Staff 2 Sales Representative 6 Total 22 13
  14. 14. FINANCIAL DETAILS Fixed CapitalParticulars AmountLand 12,50,000Building 20,00,000Furniture 90,000Computer 60,000Machinery & Equipment 40,00,000Preliminary Expense 1,00,000Total 75,00,000 14
  15. 15. Raw MaterialsParticulars Qty. Price Amt (K.G.&P.C.) (K.G.&P.C.)Stainless Still 420 - 450 67.78 30,500Polypropline 250 98.00 24,500Thermoplast Elastomer 300 213.33 64,000Stainless Still Rivets 26000 1.08 28,000 Packing MaterialPlyvinile Sheets 13,000 6.73 87,500Packing Cards 13,000 0.40 5,250Corrugated Cartoons --------- 10,250Total P.M. 2,50,000 15
  16. 16. Utilities Power 58,000 Fule 7,000 Total Production Per Month 13,000 Pc. Per Year 1,56,000 Pc. Total Sales Per Month 13,000 X 50 Rs. 65,000 Per Year 1,56,000 X 50 Rs. 78,00,000 Salary & WagesParticulars No. Rate AmtManager (Production) 1 4,500 4,500Chief Executive 2 6,000 12,000Manager (Marketing) 1 5,000 5,000Skilled Workers 5 2,500 12,000Unskilled Workers 3 1,834 5,500Accountant 1 3,500 6,000Store & Dispatch Clerk 1 2,000 2,000Clerical Staff 2 1,500 3,000Sales Representative 6 2,000 12,000 Total PM 60,000 PA 7,20,000 16
  17. 17. Other OverheadsParticulars AmountAdvertising 8,000Posting & Stationery 6,000Telephone 5,000Sales Expenses 4,000Misc. Expenses 5,000Insurance 5,000Local Taxes 3,000Transportation 5,000Repairs and Maintenance 9,000Total PM 50,000 PA 6,00,000 17
  18. 18. Working Capital Particulars AmountRaw Materials 2,50,000Salary & Wages 60,000Utility 65,000Other Expenses 50,000Total 4,25,000 Total Cost of ProjectParticulars AmountFixed Capital 75,00,000Add: Working Capital 4,25,000Bank Balance 2,50,000 Total 81,75,000 18
  19. 19. Sources of FinanceParticulars Amount AmountPromoter’s ContributionPartner 1 (50 %) 20,00,000Partner 2 (50 %) 20,00,000 40,00,000Loan from SBI @ 11.5% 41,75,000 41,75,000Total 81,75,000 19
  20. 20. Cost of ProductionParticulars 1st Year 2ndYear 3rdYearRaw Materials 30,00,000 36,00,000 42,00,000Labour 2,16,000 2,59,200 3,02,400Other Exp 1,20,000 1,44,000 1,68,000(Variable)Utilities 7,80,000 9,36,000 10,92,000Total Cost 41,16,000 49,39,200 57,52,400Variable 26.38 26.38 26.38Cost P.U.Depreciation 13,49,500 10,30,870 7,94,763Labour 5,04,000 6,04,000 7,05,000Other Expenses 4,80,000 5,76,000 6,72,000Interest 3,60,000 3,60,000 3,60,000Int. (Borrowed) 4,80,125 3,88,125 2,96,125Total Fixed Cost 31,73,625 19,28,925 20,33,725Total Cost 72,89,625 68,68,125 77,96,125P.U. cost 46.73 46.73 46.73 20
  21. 21. Cost of Capital stParticulars 1 Year 2nd Year 3rd YearSales 75,00,000 90,00,000 1,05,00,000Raw Material 30,00,000 36,00,000 42,00,000Utilities 7,80,000 9,36,000 10,92,000Salary & Wages 7,20,000 8,64,000 10,08,000Cost of 45,00,000 54,00,000 63,00,000ProductionGross Profit 30,00,000 36,00,000 42,00,000Less: Other Exp. 6,00,000 7,14,000 8,40,000Depreciation 13,49,500 10,30,870 7,94,763Preliminary exp. 20,000 20,000 20,000Earning Before 10,30,500 18,35,130 25,45,237Int. & TaxLess:Interest on 3,60,000 3,60,000 3,60,000Borrowed cap.Intrest on own 4,80,125 3,88,125 2,96,125capitalEarning Before 1,90,375 10,87,005 18,89,112TaxLess:35% Tax 66,631 3,80,452 6,61,189Earning After 1,23,744 7,06,553 12,27,923TaxADD:Deprecation 13,49,500 10,30,870 7,94,763LESS:Inst Of loan 12,80,125 11,88,125 10,96,125Net Cash Accrual 1,93,119 5,49,298 9,26,561 21
  22. 22. Depreciation BuildingCost Price 20,00,000Less: 15% dep. 3,00,000At the end 1st yr. 17,00,000Less: 15% dep. 2,55,000At the end 2nd yr. 14,45,000Less: 15% dep. 2,16,750 MachineryCost Price 40,00,000Less: 25% dep. 10,00,000At the end of 1st yr. 30,00,000Less: 25% dep. 7,50,000At the end of 2nd yr. 22,50,000Less: 25% dep. 5,62,500 22
  23. 23. Cost Per UnitParticulars AmountTotal Variable cost Rs. 41,16,000Total Fixed cost Rs. 31,73,625Total Production Cost Rs. 72,89,625/-Cost Per Unit = Total Production Cost ------------------------- No. of Units Produced Rs. 72, 89,625 = --------------- 1, 56,000 units = 46.73 Rs. Per unit 23
  24. 24. Break Even AnalysisContribution = Selling price – Variable cost per unit = 50 – 26.38 = 23.62B.E.P. in units = Total Fixed Cost Contribution/unit = Rs. 31, 73,625 23.62/unit = 1, 34,361 unitsB.E.P. in Rs. = B.E.P in units x Selling Price = 1, 34,361 x 50 = Rs. 67, 18,050 24
  25. 25. Interest & Repayment of LoanLoan from SBI @ 11.5% 1st 2nd 3rdInstall. 8,00,000 8,00,000 8,00,000Interest 4,80,125 3,88,125 2,96,125Total 12,80,125 11,88,125 10,96,125R.O.I. = EBIT x 100 Total Cost = 13,03,865 x 100 / 81,75,000 = 15.94%Contribution = S.P. – V.C. = 50 – 26.38 = 23.62 25
  26. 26. Cost of CapitalCost Of Capital : = Int. on own cap. + Int. on borrowed cap. Total Capital = 3,60,000 + 4,80,125 81,75,000 = 10.28% 26
  27. 27. Return of investmentReturn on = Earning Before Interest & Tax x 100Investment Total Capital Investment = Rs. 13,03,865 x 100 Rs. 81, 75,000 = 15.94 % 27
  28. 28. NAME & ADDRESS OF SUPPLIERS OF RAW MATERIAL AND MACHINERY Raw Material(1) Stainless Steel SheetSteel Authority of India,Branch Office,8th Floor, Marble Arch,Race Course,Baroda – 390 007(2) Poly PropyleneMurlidhar Polymers,(Dealers, Reliance Industry Limited)207, Amidhara Complex,37, Karanpara,Rajkot – 360 001(3) RubberAdvanced Elastomer System Hong Kong Ltd.,(Asia Trade Branch)15/F, Radio City,Hong Kong. 28
  29. 29. (4) Stainless Steel RivetsKundan Industries Ltd.,Kundan House,Harshiddhi Estate,Goria Pada,Near Waliv Telephone Exchange,Vasai (East),Thane. Machinery(1) Power press machineShailesh Sales Corporation,10, Bhaktinagar Station Plot,Rajkot – 360 002(2) Surface Grinding MachineMetro Machine Tools,14, Milpara,Dhebarbhai Road,Rajkot – 360 002(3) Taper Grinding Machine & Ledger Teeth Grinding MachineE. Siepmann & Co.,Eintrachtsrabe 21,D-5650 Solingen 1 West – Germany 29
  30. 30. (4) Power Searing machineG.S. Industries,1/4, Maudi Plot,Opp. Kishara Oil Mill,Rajkot – 360 004(5) Buffing Polishing machineMoldex Agencies,Suvidhinath App.,Kanta Stri Vikas Gruh Road,Rajkot – 360 002(6) Blister MachineAntiqueart,Shri Ram Co-operative Indus Premises,Block – J, Ram Mandir Road,Gore Gaon (West)Mumbai – 400 104(7) Air Compressor MachineVrujral Sales Corporation,Punit Society,Near Nilkanth Cinema,Rajkot – 360 002 30
  31. 31. (8) Auto Moulding machineSamrat Engineering,Opp. Bombay Conductor,Vatva,Ahmedabad(9) Oil Fire FurnaceThermochem Metod Treators,G.I.D.C.Surendranagar(10) Lathe, Shaping, Drill, Bench, Surface MachineAshok Enterprise,Vanjiya Bhavan,Dherbar Road,Rajkot – 360 002(11) Powder Grinder Machine & Hand Press MachineAnkita Enterprises,Paras Housing Society,Jamnagar 31
  32. 32. Balance SheetSources of FundsOwner’s Capital Partner 1 20,00,000 Partner 2 20,00,000Loan Taken 41,75,000EAT 3,01,431TOTAL 84,76,431Application of FundsGross Fixed Assets 74,00,000Less: Dep. 13,49,500Stock 23,365Debtors 21,52,566Cash & Bank Balance 2,50,000TOTAL 84,76,431 32
  33. 33. Cost SheetParticulars Amount AmountOpening Stock of R.M. - -Add: Purchase 30,00,000Less: Closing Stock of R.M. 2,50,000R.M. Cost 27,50,000Direct Labour 2,16,000Direct Exp.: Utilities 7,80,000Prime Cost 9,96,000Factory OverheadsManagers 54,000Store & Dispatch Clerk 24,000Repairs and Maintenance 1,08,000Dep on Factory Building 3,00,000Dep on Machine 10,00,000Factory Cost 14,86,000 33
  34. 34. Office ExpensesPostage & Stationery 72,000Accountant 42,000Chief executive 1,44,000Clerical staff 18,000Telephone 60,000Local Taxes 36,000Insurance 60,000Misc. Expenses 60,000Dep on Computer 36,000Dep on Furniture 13,000Office Cost 5,41,500Selling & Distribution ExpSales representative 1,44,000Manager 60,000Transportation 60,000Advertising 96,000Sales Expenses 48,000Cost of Sales 5,08,000Total Cost 62,58,135Profit 12,41,865Total Sales 75,00,000 34
  35. 35. Particulars of Raw Materials Schedule of Raw MaterialsParticulars Year1 Year2 Year3Opening Stock - 2,50,000 3,00,000Add: Purchase 30,00,000 36,00,000 42,00,000 30,00,000 38,50,000 45,00,000Less : Closing Stock 2,50,000 3,00,000 3,50,000Raw Materials 27,50,000 35,50,000 41,50,000Consumed Particulars of Finished Products Schedule of Finished ProductParticulars Year1 Year2 Year3Opening Balance - 22,365 28,065Add:Goods Manufactured 75,22,365 90,28,065 1,05,32,711Less:Sales During Year 75,00,000 90,00,000 1,05,00,000Closing Stock 22,365 28,065 32,711 35
  36. 36. Schedule For Fixed AssetsSchedule of Written Down Value Of Fixed AssetsParticulars Gross Block Depr. Net BlockLand 12,50,000 - 12,50,000Building 20,00,000 3,00,000 17,00,000Furniture 90,000 13,500 76,500Computer 60,000 36,000 24,000Machinery 40,00,000 10,00,000 30,00,000Preliminary Exp. 1,00,000 20,000 80,000Total 75,00,000 13,69,500 61,30,500 36
  37. 37. Schedule For Factory Overheads Schedule of Factory Cost for The Three YearsParticulars Year-1 Year2 Year3Salary to Managers 54,000 54,000 54,000Salary Dispatch Clerk 24,000 24,000 24,000Repairs & Maintain 1,08,000 1,28,520 1,51,650Misc. Expenses 60,000 71,400 84,000Electricity Expenses 6,96,000 9,36,000 10,92,000Dep. of Building 3,00,000 2,55,000 2,16,750Dep. of Machinery 10,00,000 7,50,000 5,62,500Total Factory Cost 22,42,000 22,18,920 21,84,900 37
  38. 38. Schedule of Office & Administration Expenses Schedule of Office & Admn. Exp. For three yearsParticulars Year1 Year2 Year3Salary to Accountant 42,000 42,000 42,000Salary to C.E. 1,44,000 1,44,000 1,44,000Salary to Clerical 18,000 18,000 18,000StaffPostage & Station 72,000 85,680 1,00,800Telephone Exp. 60,000 71,400 84,000Local Taxes 36,000 42,840 50,400Insurance 60,000 71,400 84,000Misc. Expenses 60,000 71,400 84,000Dep. of Computer 36,000 14,400 5,760Dep. of Furniture 13,500 11,475 9,753Total Office & 5,41,500 5,72,595 6,22,713Admn. Cost 38
  39. 39. Schedule of Selling & Distribution Expenses Schedule of Selling & Distribution Exp. For three yearsParticulars Year1 Year2 Year3Salary toMarketing Manager 60,000 60,000 60,000Sales Rep. 1,44,000 1,44,000 1,44,000Transportation 60,000 71,400 84,000Advertisement Exp. 96,000 1,14,240 1,34,400Sales Expenses 48,000 57,120 67,200Total Selling & 4,08,000 4,46,760 4,89,600Dist. Cost 39
  40. 40. Accounting PoliciesAngel Pvt. Ltd. follows the following accounting policies • Fix amount of loan repayment every year along with the interest of the current year. • The credit period allowed to the customers is three weeks. • Suppliers allow us credit period of 2 week or sometimes differ on the amount of raw materials at a time. • Salaries of all the staff in all categories are assumed to be constant in all the first three years. • Salaries are paid on 7th of every month. • Closing stock is valued on its cost and not the market price. 40
  41. 41. RISK FACTOR When business unit is started there are many benefit provided to them aswell as there are many risk factor. Risk factor for this unit is only one i.e. when countries like China,Taiwan, etc. dumped their product in India at that time it is difficult to competein the market. But this risk can also be minimized by aggressive sales promotionactivity. 41
  42. 42. A Business Plan On SCISSORS Prepared By Vruta N. Patel M.B.A. Sem-III Roll No. 62 Submitted To Director Dr. Rajesh Patel Academic Year 2010-2011 Name of InstituteN. R. Vekaria Institute of Business Management Bilkha Road, Junagadh. 42
  43. 43. A Business Plan On KHAKHARA Prepared By Sonal D. Gondaliya M.B.A. Sem-III Roll No. 25 Submitted To Director Dr. Rajesh Patel Academic Year 2010-2011 Name of InstituteN. R. Vekaria Institute of Business Management Bilkha Road, Junagadh. 43
  44. 44. INDEXSr. No. Particular Page No. 1 Introduction 1 2 Project At a Glance 2 3 Bio-Data of Partners 3 4 Organization Structure 5 5 Proposed Location & Justification 6 6 Market Potential 7 7 Implementation Schedule 8 8 Raw Material 9 9 List of Machinery & Equipment 10 10 Manufacturing Process 11 11 Financial Details 14 12 Break Even Analysis 24 13 Name & Address of Suppliers of Raw Material and 28 Machinery 14 Balance Sheet 32 15 Accounting Policies 40 15 Risk Factor 41 44

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