business plan (manufacturing Calculators)

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business plan (manufacturing Calculators)

  1. 1. 1 A BUSINESS PLAN ON PREPARED BY VEJALPARA UNNIT N.. ENRL.NO.117360592071 M.B.A. SEM-III SUBMITTED TO PROF. Dr. Rajesh Patel InstituteN.R. VEKARIA INSTITUTE OF BUSINESS MANAGEMENT STUDIES,-JUNAGADH.
  2. 2. 2 STUDENT DECLARATION I the undersigned VEJALPARA UNNIT N. student of M.B.A. (Sem-III of N.R.Vekaria Institute of Business Management Studies – Junagadh), hereby declare that thisBUSINESS PLAN is the record of authentic work carried out by my own efforts, under theguidance of Prof. Dr. Rajesh Patel during the academic year 2012-13.Place:-Junagadh.Date: - Your sincerely, (vejalpara unnit n.)
  3. 3. 3 INDEX Sr. NO. PARTICULAR PAGE NO. 1 Introduction 2 Project at a glance 3 Promoter’s Bio-data 4 Location justification 5 Introduction of product & market analysis 6 Manufacturing process 7 Product features & its uses 8 Financial details 9 Financial arrangement 10 Profitability of a project 11 Project summary 12 Fund flow statement 13 Cash flow statement 14 B.E.P. Analysis 15 Advancement & future prospect 1.INTRODUCTION The small scale industry is playing a vital role in the economicgrowth. Small scale industries will help in achieving a decentralized pattern ofeconomic activity in the country. It creates opportunity of employment. Thus, itplays very important role in developing country. DIGITAL based on the firm foundation of international qualityoffering the widest range of products. Quality is our assurance & the world is our
  4. 4. 4market. The main aim is to satisfy customer &give better quality. He is not dependenton us we are dependent on him. The main purpose is to give better & entireinfrastructure facilities. 2.PROJECT AT A GLANCE Under the head “ELECTRONIC CALCULATORS” the preliminaryinformation of the project is given. The preliminary information of the project is asfollows. Name of unit :- A.K. ELECTRONICS Address :- G.I.D.C.
  5. 5. 5 Dolatpara, Junagadh. Form of organization :- Partnership Firm Name of product :- “ELECTRONIC CALCULATORS” S.S.I. registration No. :- An application has been made with DIC, JND Details of location :- G.I.D.C. Owner’s name :- ( 1)Vejalpara Unnit N. (2) Jethava Hemal G. Cost of project :-Rs.20,00,000 3.PROMOTER’S BIO DATA(1). Name : -Vejalpara Unnit N.(2). Address :- At. “PITRU ASHISH” Khamdhrol road, Near bhumi app. Junagadh
  6. 6. 6(3). Age :-22 Years(4). Academic Qualification :-M.B.A.(5). Working Experience :- Fresher(6). Nature of Responsibility :-finannce(7). Contribution of Unit :-50%(8). Tax Details :-Paid(9). Total Share of Profit :-50%(1). Name : - jethava Hemal G.(2). Address :- “SHANDILYA” Block No. -15, Mangaldham-2, Junagadh.(3). Age :-24 Years
  7. 7. 7 (4). Academic Qualification :-B.E. ( Eletronics ) (5). Working Experience :- 2 years (6). Nature of Responsibility :-Production (7). Contribution of Unit :-50% (8). Tax Details :-Paid (9). Total Share of Profit :-50% 4.LOCATION JUSTIFICATION Location means the place a particular is situated. Generally, every entrepreneurwould like to locate his factory in such an area where all basic facilities can beavailed very easily. Desire of setting up my product project is influenced by following factors.(1) RAw-MATERIALS :-
  8. 8. 8 As the firm is situated near the area where raw-materials are easily available and are near to the area from where the raw- materialsare to be purchased.(2) LABOUR :- Generally, all type of manpower is available at reasonable cost asmany industries are established in this area. Moreover different laborers are comingfrom near village for getting jobs.(3) TRANSPORTATION :- The firm situated near by a roadway that’shighways, and also as many industries are situated it gets all the necessary facilitiesneeded for transportation.(4) FINANCIAL FACILITIES :- There are many banks and Money sendersfrom which financial requirements can be satisfied. More over G.S.F.C. providesloans to held industries and remaining shall be on contribution.(5) OThER FACILITIES :-1. TELECOMMUNICATION –
  9. 9. 9 The facility of telephone and telegraph is available easily here.2. ELECTRICITy - Government has provided the electricity at very cheap rate,so here G.E.B. also provides the electricity at cheaper rate and that too easily
  10. 10. 10 5.INTRODUCTION OF PROJECT & MARKET ANALySIS “ELECTRONIC CALCULATORS” has great market in the consumergoods. In every field calculator is essential such that in office, banks, shops, students,engineer for calculation is mostly using. So, this electronic items covers mostly highmarket. As we know the use of “ELECTRONIC CALCULATORS” are much morenot only in one area but in all over the world. This product is very high potential in themarket even when it is available at a very reasonable rates with the good quality.
  11. 11. 11 6.MANUFACTURING PROCESS The main raw material required in manufacturing ELECTRONICCALCULATORS are plastic cabinet, key, tops, pressure pad, integrated circuit, chips,LCD display, & connector. The manufacturing process involves following stage:  Inspection of raw materials /components .  Assembling components like integrated circuit, diodes, chips, etc on paneled circuit board ( PCB )  All precautions which are taken in respect of CMOS, in the same manner integrated circuit should also be taken care of while mounting/ shouldering integrated circuit on PCB.  Washing of printed circuit board with PCB cleaning chemicals to remove flux contaminates /residues.  Mounting of PCB’s in the cabinets along with the LCD display pressure pad, connecters & other hardware items like battery clips/ spring etc.  Checking & sorting of final product & then dispatch. SUPPLIERS:- Bansi Suppliers, Trupti Suppliers, Arrows Complex, Sarasvati Complex, Linking Road, 2nd floor,
  12. 12. 12 Santa Cruise (West), Ambavadi, Mumbai-400 023 Ahmedabad- 7.PRODUCT FEATURES & ITS USES Product is a key element in the market offering. Marketingmix planning begins with formulating an offering to meet target customer’sneeds or wants. The customer will judge the offering by three basicelements. The product features & quality, the services mix &quality and theoffering’s price appropriateness. Thus all the three elements must be meshedinto a competitively attractive offering. Electronic Calculators in various sizes & models.
  13. 13. 13  USES: Electronic calculators are extensively used in office,banks, shops, departmental stores, students, housewives & various otherestablishments. Scientific calculators are used by students & research works.This calculator uses an integrated circuit. Generally these calculators couldby placed in the following categories: 1) Pocket type 2) Desk top type 3) Desk top type with printer The above categories could be further subdividedbased on number of digits, type of display (Black, Fluorescent, etc.)memory function, type of printer (i.e. light / heavy duty), power i.e.(Single / Dual / triple power operated etc.) As such a large variety of calculators would beavailable in the market with price ranging from Rs. 100 to Rs. 10,000. Above all these calculators will offer betteraesthetics, lesser weight, large variety in sizes & design. It wills also trendypatterns, strong posture & long lasting.
  14. 14. 14 8.FINANCIAL DETAILS (A) LAND:- Sr. No. Sq. Mtr. Rate Total Value 1 400 500 2,00,000 (B) BUILDING:- Sr. No. Details Area Sq. Mtr. Rate Total Value 1. Office 25 500 12,500 2. Working Shed 150 500 75,000 3. Staff Quarter 200 400 80,000 4. Go Down 165 500 82,500 (C) MAChINERy:-No. Description Qty. Rate Amount1. Bench drilling machine 3 25,000 20,0002. Portable Grinder 2 30,000 10,0003 Testing equipments A) Oscilloscope 2 1,20,000 B) DC power supply 8 1,00,0004 Multimeters A)Analog 3 9,000 B) Digital 3 18,0005 PCB Assign. Aids + 10 30,000 Electrification charges 40,0006 Cost of dies, moulds, jigs 1,00,000 &fixtures7 Office equipments & 4,85,000 fixtures COST 9,32,000 Add: T.P.cost 18,000
  15. 15. 15 TOTAL COST 9,50,000 The place from where machineries will arrive. Toshiba Equipments, Shrinathji Equipments, paldi, Ambavadi, Ahmedabad, Ahmedabad. (D) FIXED CAPITAL:- No. Description Amount 1. Land 2,00,000 2. Building 2,50,000 3. Machinery 9,50,000 4. Preliminary Expenses 1,00,000 5. Contingency 1,00,000 Total 16,00,000 (E) wORKING CAPITAL STATEMENT:-No. Description Amount(Monthly) Amount(Yearly)1. Raw Material 70,000 8,40,0002. Packing Material 20,000 2,40,0003. Wages & Salary 20,000 3,60,0004. Other Expenses 10,000 1,20,0005. Debtor 2,000 24,0006. Repair & Maintenance 4,000 48,0007. Power & Fuel 7,000 84,000
  16. 16. 16(F) TOTAL COST OF A PROJECT:- No. Description Amount 1. Fixed Capital Cost 16,00,000 2. Working Capital Cost 4,00,000 Total 20,00,000 9.FINANCIAL ARRANGEMENT(A) FINANCIAL OF ThE PROJECT:- No. Description Total Owned Loan 1. Land & building 4,50,000 3,50,000 1,00,000 2. Machinery 9,50,000 7,00,000 2,50,000 3. Contingency 1,00,000 1,00,000 - 4. Working Capital 4,00,000 4,00,000 - 5. Preliminary Exp. 1,00,000 1,00,000 - Total 20,00,000 16,50,000 3,50,000
  17. 17. 17(B) ANALySIS OF INvESTMENT:- Particular Amount Owned Capital 16,50,000 Loan from GSFC 3,50,000 Total 20,00,000(C) OwNED CAPITAL:- Gajera Kalpesh 8,25,000 Baldha Abhisek 8,25,000 Total 16,50,000 10.PROFIABILITy OF A PROJECT(A) SALES & PRODUCTION (ANNUAL):-particulars Price per unit monthly Selling Annual IncomePocket calculators 145 850 14,79,000Desk top calculators 200 700 16,80,000(B) COST OF RAw MATERIALS:-
  18. 18. 18No. Raw Material Qty. Cost(Monthly) Amount(Monthly)1. Connectors 2,000 10 20,0002. Diodes 2,000 11 22,0003. LCD Display 2,000 10 20,0004. capacitor 1,600 12 19,2005. circuit 1,600 11.75 18,800 Total 1,00,000(C) COST OF wAGES & SALARy:-No. Details of No. of Salary & Salary & Worker Worker Wages(Monthly) Wages(Yearly)1. Manager 1 8000 96,0002. Supervisor 1 6000 72,0003. Skilled Worker 3 4000 1,44,0004. Unskilled 2 2000 48,000 Worker Total 7 20,000 3,60,000(D) ELECTRICITy CONSUMED (ANNUAL):-Sr.no. Particular Amt. (yearly)1. Water 5,0002. Power 1,65,000 TOTAL 1,70,000(E) RENT. TAX. &INSURANCE:- Sr. no. Particular Amount(Yearly) 1. Rent. Tax & Insurance 1,00,000(F) REPAIR &MAINTENANCE:-
  19. 19. 19 Sr no. Particulars Monthly Yearly 1. Repairs 1,000 12,000 2. Maintenance 3,000 36,000(G) INTEREST:- No. Particulars Amount Rate Interest 1. GSFC 3,50,000 11% 38,500(h) DEPRECIATION:- No. Depreciation Amount Rate Interest 1. Building 2,50,000 9% 22,500 2. Machinery 9,50,000 8.5% 80,750 Total 1,03,250(I) ADMINISTRATIvE EXPENSES:- No. Particulars Monthly Yearly 1. Printing & Stationary 200 2400 2. Telephone & postage 500 6000 3. Transport 2000 24,000 Total 32,400(J) SALES EXPENSES:- No. Particulars Monthly Yearly 1. Advertisement & Publishing Exp. 1000 12,000 2. Packing Expense 1000 12,000
  20. 20. 20 Total 24,000 11.PROJECT SUMMARy(A) CALCULATION OF PROFIT:-Particular Amount AmountIncome from sales 31,59,000Less: Cost of ProductionRaw Material 12,00,000Salary and Wages 3,60,000Electricity 1,70,000Rent and Insurance 1,00,000Repairs 48,000Interest 38,500Depreciation 1,03,250Administration Exp. 32,400Sales Exp. 24,000 20,76,150Total Profit 10,82,830Total Profit 10,82,830Less: Income tax @ 30% 3,24,849 ------------------- Net Prifit 7,57,981PROFIT DISTRIBUTION:-Gajera kalpesh R. :-7,57,981 * 50% = Rs. 3,78,991
  21. 21. 21Baldha Abhishek K. :- 7,57,981 * 25% =Rs. 3,78,990 12.FUND FLOw STATEMENT Particular Amount Amount (A) Source of Fund 1.Own Capital 16,50,000 2.Loan from GSFC 3,50,000 Total source 20,00,000 (B) Application of fund 1.Land & Building 4,50,000 2.Machinery 9,50,000 3.Contingency 1,00,000 4. Preliminary Expenses 1,00,000 5.Working Capital 4,00,000 Total Application 20,00,000 13.CASh FLOw STATEMENT
  22. 22. 22PARTICULA 1 ST 2 ND 3 RD 4 Th 5 Th yEAR yEAR yEAR yEAR yEAR RNet profit during 10,82,830 13,70,000 15,60,000 17,00,000 19,20,000 yearADD: non cashitems1)Depreciation 1,03,250 1,03,250 1,03,250 1,03,250 1,03,2502)Preliminary 1,00,000 87,000 89,000 85,000 1,10,000exps. 3,24,849 4,11,000 4,68,000 5,10,000 5,76,0003)Provision oftaxationCASh FLOw 16,10,929 19,71,250 22,20,250 23,98,250 27,09,250FROMOPERATIONADD: Increase inC.L.Creditor 18,000 19,000 17,000 17,500 20,000Bills Receivable 12,000 12,500 10,000 15,000 18,000Decreasein stock 6,000 5,000 6,500 7,000 8,500 TOTAL 36,000 36,500 33,500 39,500 46,500Less:Increase inC.A 90,000 92,500 94,000 1,10,000 1,18,000 Bills Payable 20,000 18,000 25,000 20,000 22,000 Debtors TOTAL 1,10,000 1,10,500 1,19,000 1,30,000 1,40,000Net cash flowfrom operations 15,36,929 18,97,25 21,34,75 23,07,75 26,15,75 0 0 0 0 14.B.E.P. ANALySIS
  23. 23. 23 (1) (2) (3) (4) (5)PARTICUL 60% 70% 80% 90% 100%AR SALES 31,59,000 36,85,500 42,12,000 47,38,500 52,65,000VARIABLE COST:- 1. Raw 1,00,000 1,16,667 1,33,334 1,50,000 1,66,667 Material 2. Wages 3,60,000 4,20,000 4,80,000 5,40,000 6,00,0003. Repairs & 48,000 56,000 64,000 72,000 80,000Maintanenc es 4 Selling 24,000 28,000 32,000 36,000 40,000 expenses TOTAL 5,32,000 6,20,667 7,09,334 7,98,000 8,86,667 FIXED COST:- 1. Rent & 1,00,000 1,16,667 1,33,334 1,50,000 1,66,667 insurance 2. Admini. 32,400 37,800 43,200 48,600 54,000 Expens. 3. 1,03,250 1,20,459 1,37,667 1,54,875 1,72,083depreciation 4. intrest 38,500 44,917 51,333 57,750 64,167 TOTAL 2,74,150 3,19,843 3,65,534 4,11,225 4,56,917contributio 26,27,000 30,64,833 35,02,667 39,40,500 43,78,333 n P.V. Ratio 83.16 83.16 83.16 83.16 83.16B.E.P Sales 3297 3846 4396 4945 5494CALCULATION OF BEP FOR CURRENT yEAR:- 1. Contribution = sales – Variable Cost. = 31,59,000 – 5,32,000 = 26,27,000
  24. 24. 24 2. P.V.Ratio = Contribution × 100 Sales = 26,27,000 × 100 31,59,000 = 83.16 3. BEP Sales = Fixed Cost P.V.Ratio = 2,74,150 83.16 = 3297 15.CONCLUSION Day to day the use of electronic calculator is increasing dueto use of various area. So electronic calculator’s use is essential in different
  25. 25. 25faculty. So future plan of business is develop various type of electroniccalculator i.e. scientific calculator and solar calculator which will workwithout battery power and available at a reasonable price and betterqualitative goods. Everybody can use it with easily The main is not only to earn profit but satisfaction ofcustomers with better qualitative goods. Thus the future of business is verybest and easily go ahead for better future prospection.

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