pressure cooker

PPR ON PRESSURE COOKER
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MVM COLLEGE RAJKOT
A
PRODUCT PROJECT REPORT ON
ROYAL PRESSURE COOKER
PreparedBy : BHENSDADIA BHAVIKA D..
Roll No. : 07
SeatNo. :
Class : BBA SEM-5
Academic year:
2014-2015
College:
Matushri virbaima Mahila College of Commerce, Management & It
Guided by:
Prof. Dharti Nathwani
Prof. Kalpesh Radiya
Submitted To:
Saurashtra University

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1. INTRODUCTION TO SMALL SCALE INDUSTRY
The small scale in India covers a wide spectrum of Industries categorized under
small, tiny and cottage segment ranging from small artisans handicraft units to
modern production units with significant investment. This sector has acquired a
prominent place in the country as it not only acts as a nursery for the development
of entrepreneurial talent but also produce a wide range of products.
In the Indian context, the small scale industry has been receiving due attention and
importance from the policy makers owing to its special characteristics, namely.
 Low level of investment required.
 High potential for creation employment opportunity.
 Least location constraints.
 There by contribution to a balanced regional development and high of local
resources.
ROYAL PRESSURECOOKER INDUSTRY will small scale industry. Investment
of royal pressure cooker industry is 1,00,00,000.ROYAL PRESSURECOOKER
INDUSTRY will producepressure cooker. Pressure cookerwill have feature like
Stylish, Hard Anodized, Time & Energy Efficient, Can be used on Gas Stove as
well as Induction Cooktop.

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2. INTRODUCTION TO PRODUCT PROJECT REPORT
(1)

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(2)

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3. PROJECT AT A GLANCE
Name of the Unit “Royalpartner’s firm”
Tag line “Always tasty & fresh food”
Promoter’s Name BHENSDADIA BHAVIKA D..
Communication address ROYAL pressure cooker industry
Survey no. 196,
Plot no.1&2,
Vill.: Veraval (shaper)
Dist. : Rajkot – 360024
Registration office Address ROYAL pressure cooker industry
Survey no. 196,
Plot no.1&2,
Dist. : Rajkot – 360024.
Telephone No. 0281-314311
Fax No. 75-14311
Form of Organization Partnership Firm
Size of the unit Small Scale Unit
Brand Name “ROYAL”
Usage of the product Making food
SSI RegistrationNo. Applied For

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Number of employee 30
Investment 1,00,00,000
Day off Wednesday
Sources offinances 60 % Ownership
40 % Borrowed
Investment in working capital 41,79,000
Investment in fixed capital 58,21,000
Relationwith Bank State bank of India
LOGO of Company

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4. PROMOTER’S BACKGROUND
Name Bhensdadia Bhavika d.
Age 26
Address Astha Residency,
3G+ Apartment,
Sukanvila 201,
Rajkot-360004
Education/Qualification MBA
Experience 2year
Nature of Responsibility Managing marketing & finance
Contribution in the unit 60%

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5. JUSTIFICATION OF LOCATION
ROYAL PRESSURE COOKER strategically located at
SHAPER (VERAVAL) industrial estate. Location factors are crucial for the wealth
maximization of the firm ; therefore it is inevitable for every industrialist to
give full consideration to the suitable location of the enterprise . An
entrepreneur must choose an ideal location to have better performance .
Following are the factors to select shaper as the plant location
1.Availability of Raw-materials :-
Raw-material plays vital role to achieve quality improvement
and cost reduction in production. Shaper is the best to get raw-material
easily because it is attached with national highway.
2.Availability of power and water:-
In modern era industry could not work without power. Adequate
electricity and regular flow of electricity allows greater freedom of choice
for location . Shaper(veraval) has continuous flow of electricity so, shaper (
veraval ) is best possible location as out of the city area .The rate of
electricity is lower in shaper (veraval) because it’s known as industrial zone.Water
supply is also necessary for continuous production process.
3.Nearness to markets :-
Quickness in marketing action can be ensured by the being close to the
market, late deliveries can be avoided when plant is located near the market
. Industry have ready market for selling of product.
4.Availability of labor :-

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Worker or labor are the most imported person in the industry. If
labor gets easily then we can controlor reduce the costof production.Labors get at
very cheaper rate because of industrial zone.
LOCATION OF UNIT :
ROYAL pressure cooker
Survey no. 196,
Plot no.1&2,
Dist. : Rajkot – 360024.
RAJKOT
N/
H
8
-B
ROYAL
PRESSURE
COOKER
SHAPER
(VERAVAL)

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6. ORGANISATION STRUCTURE
PROMOTOR
PRODUCTION
MANAGER
H R
MANAGER
MARKETIN
G MANAGER
FINANCE
MANAGER
SUPERVISIOR EMPLOYEES SALES MAN ACCOUNTANT
WORKER CLERK

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7. VISION& MISSION OF THE COMPANY
VISION:-
Vision of the ROYAL PRESSURECOOKER INDUSTRY will
maximum customer satisfaction by providing qualitative and good productto
customer. Job satisfaction of employee will also short goal of the industry.
MISION:-
Mission of ROYAL PRESSURECOOKER INDUSTRY will
expand market as well as market share of industry. industry want to convert small
scale industry in medium scale industry with the customer satisfaction. industry
want to build strong image in the market.

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8. BASIS AND PRESUMPTION
 The proposedproductionof 36,000 per annum of gas lighter more than 300
working days in a year.
Shift Single shift
Working hours 8:30Am to 8:00Pm
Break 12:30Pm to 2:00Pm
 The unit requires 2 to 3 year to achieve full capacity utilization the first year,
company utilized 75% capacity.
 The wages proposed in the project are as per privileged wage practice in the area.
 Land value and construction costhas been taken on an average basis science it
varies from place to place.
 The costof machinery & equipment has been proposed after consulting the
machinery supplier nearly all the machines are available locally.

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9. IMPLEMENTATION SCHEDULE
The major activities in the implementation of the project have been
listed and the average time for implementation is estimated at 8-9 months.
No. Particulars Time Period
1. Preparation of Project Report 1 Month
2. Acquisition of Land 1 Month
3. SSI Registration 1 Week
4. Approval of loan 20 Days
5. Construction of Building 1 Months
6. Acquisition of Machinery 1 Month
7. Installation of Machinery 15 Days
8. Arrangement of Power 1 Month
9. Appointment of Staff &Labour 15 Days

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1. PLANT LAYOUT
According to M.C.Muste :-
“ A good layout is one which always materials regularly and directly for
processing ,this reduces transport ,handling, detail and other costs down per unit,
space requirements are minimize and reduced idea machine and idle man fine.”
A technique of locating different machines and plant requires within
the factory so that the greatest possible output of high quality at the lowest possible
total costbe available. Properplant layout is one of keys of success in factory
management. It signifies arrangement of machines work area transport shorting of
materials and processingto different parts.
ROYAL PRESSURE COOKER INDUSTRY will have S type plant layout which
is reduce the unnecessary motion of employees. Industry arrange their store room
near to production plan so Industry eliminate damage of raw-materials or finished
product. Industry also arranged his machinery in that way which reduce movement
of raw-material.

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2. RAW MATERIAL
The raw materials are the most important component of the production
process. When the raw materials are collected then and only then production is
possible. If the raw materials are available in the cheapest way it is the most
important advantage for the firm. The raw materials can be compared to water, air
and food for human beings which are very important so as the raw materials for the
firm.
Authors believe, “The raw materials are like the parts of human body”
without which the person cannot perform his activities. Raw materials are very
important requirements of every industry & mainly for manufacturing unit. The
production of any product is not possible without raw materials. Raw materials are
regarded as assets and are given or sold at higher price.
ROYAL PRESSURE COOKER INDUSTRY also consider the raw
materials as the key factor in production unit. The main raw material used in
Pressure cooker is: aluminum circle,wishel, gas kit, Bakelitehandle, balkPatti.
ROYAL PRESSURE COOKER INDUSTRY purchasing the raw material from
Jamnagar, veraval, vyara.

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3. MACHINERY AND EQUIPMENT
Like raw materials machinery is also available easily. Some of the
mare acquired from local market only & some are acquired from Ahmadabad city.
Sr.
No.
Name of
Machinery
Name of
Suppliers
Units Rs. Per Unit Amount
1. Cutting
Machine
“shiv”enterprise
Rajkot 1. 4,00,000 4,00,000
2. Stuffing
Machine
“classic
machinery”
Ahmadabad
2. 2,00,000 4,00,000
3. Sewing
Machine
“Suner
machinery”
Rajkot 3.
1,73,000 1,73,000

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4.SUPPLIERS OF RAW MATERIAL & MACHINARY
Raw material will be the basic need of all types of organization of all medium and
large scale industry. Without raw materials production process will impossible.
Raw material is life blood of productiondepartment.
A) RAW MATERIAL
1)Aluminum Circle: BIC company
2)Wishel : DR. BACK company
3)Gas Kit : Dell korn company
4)Bakelite Handle : local market
5)Balk Patti : graver company
B) MACHINARY
1)Cutting Machine : Shiv Wiring industry
Ahmadabad
2)Stuffing Machine : Parth limited
Ahmadabad
3)Sewing Machine : Tinytech pvt. ltd.
Surat

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5. FLOW CHART OF PRODUCTION PROCESS
RAW MATERIAL
CASTING
CUTTING
MAKE HOLES
BUFFING
ASSEMBLING
PACKING

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6. PRODUCTION PROCESS
The assembling process & manufacturing process ofhandle is not as critical as
other. It requires some amount of technical knowledge because the quality
production.
Manufacturing process involves following few operation;
 Aluminum circle or required size will press in deep drawing press with the help of
suitable die
 Edge of the cookeris out on spinning machine.
 Cookerwill than cleaned buffed on buffing machine on outer surface and sand
blasting will donein the inner surface with help of spray pump.
 Primer coating will do into the outer surface and dried.
 Teflon and few pigment will mixed in require proportions will made and coating
will done in the outer surface.
 Cookware thus produced will then take off and necessary fixing or handles etc is
made on it and then packed.

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7. PRODUCTION CAPACITY AND QUALITY CONTROL
Production Capacity 50%
No. of Working Days in a month 26 days
No. of Working Days in a Year 312 days
No. of Shifts per day 1
No. of Working hours per shift 8
Production Capacity per year 36,000

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8. POLLUTION CONTROL AND ENERGY
CONSERVATION
POLLUCTION CONTROL:
 The entrepreneur is advice to contact concerned state pollution control board for
detailed guidance in the matter.
 However the water in this industry is generated during cleaning, washing, pre-
treatment blanching of raw material. It is advisable to test the water discharge as
per specification laid down by such treatment has been made in the profit.
 “Royal pressure cooker” not any high conical and raw materials which spread
pollution. They follow government rules of pollution high walls in production
department to reduce the noise pollution.
ENERGY CONSUMPTION:
 Although the energy requirement, it’s small yet some important point for
conservation of energy are given below.
1) In electronically installation appropriate electric machinery should be & properly
installed.
2) There should be no folt in machinery.

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9. QULITY CONTROL
“Quality is near an accident; it is always the result of high
intention, sincere effort intelligent direction and skillful execution”.
Above all, quality means setting the highest standards for their selves.”
In industrial context quality is defined in much more functional fashion thus we
can say that quality means, “Fitness for use” whether for a productor service. It is
also considered as the sum total of the attributes or properties that describe the
product.
Today the existence of any manufacturing unit depends on the
quality of product or services it manufactures or supplies. The image or goodwill
of any unit is closely related to the quality of product made or supplied by that
unit;
In the ROYAL PRESSURE COOKERS Industry are too much
conscious about its product. Industry will have latest equipment for the checking of
raw-materials and finished product. So that Industry can maintain quality of their
product and build image in the market. Industry will first check finishing of
cooker, then test vishals test and at last pressure.

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1.MARKET POTENTIAL
 The market potential for Pressure Cooker is huge. While there are a vast
no. of people who prefer to buy the Pressure Cooker Thus, initially we will
try to exploit this segment of market. We would also like to draw attention
People which use different type of pressure Cooker.
 All public is fond of Pressure cooker especially in India. they used to
Cooking in lunch or dinner. In Market our product will be available easily.
We are producing and supplying the product as per the demand.

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2. MARKET SEGMENTATION
According to PHILIP KOTLER :-
“ Market segmentation is the sub dividing of a market in to homogeneous sub sets
of customers, where any sub sub-set may conceivably by selected as a market
target ton be achieved with distinct marketing mix.”
The concept of market segmentation is based on the assumption
that markets are not homogeneous but are heterogeneous. Market segmentation
reflects reality in marketing situation. Market segmentation ensures higher
customer satisfaction and improves effectiveness of the marketing programmed.
Market segmentation is a customer’s oriented philosophy.
CRITERIA FOR MARKET SEGMENTATION:-
1. Geographic
2. Demographic
3. Psychographic
4. Socio economic
5. Marketing condition
ROYAL PRESSURE COOKER INDUSTRY segment his market on the basis of
geographic basis. Industry have local market. Industry has consumer users.

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3. PROMOTIONAL EFFORTS
 This is the 4th & last topic of marketing mix. According to out study promotion is a
communication activity whole main object is to move forward or push forward a
product, service idea in a channel of distribution. The promotional activity always
attempts to afford knowledge, attitude, performance and behavior.
 You have best product with fair price people will not buy it they have no many
idea regarding our product. So,it is very important to awards the people from the
existence of product, it feature, uses, benefit, etc. this aspect help in awaking
stimulating consumer demand for the product. Not only that but it also helps in
capturing & maintaining demand for product.
 In modern marketing it is more tamp to attract the costmer by various promotional
tools gather than good product. Every company directly or indirectly plays, the role
of communicate and promoters.We are also going for sample testing.

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4. PRICING POLICY
Pricing decision play a vital role in the development of any industries
because pricing policy is the only factor in marketing mix of any firm which
produces the revenue.
The product for which the firm deals in the main material or we can say
product acts as the heart of human body in the field. The product is manufactured
in a proper & exact manner but if the sales department does work for it then the
efforts are useless.
There is various method of determining price of a product. Industry are as under.
1. Costplus pricing method
2. Marginal pricing method
3. Going rate pricing method
ROYAL PRESSURECOOKER INDUSTRY will has adopted COST PLUS
PRICING POLICY these types of prices cover the full cost occurred and
company adds some percentage of margins .

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5. DISTRIBUTION CHANNEL
According to WILLIAM J.STANTON:-
“A channel of distribution for a productis the route taken by the
title to the goods as Industry move from the producerto the ultimate customers or
industrial users.”
Distribution channel may be defined the set of marketing
institution participating in the marketing activities involve in the movement
or the flow of goods or distribution indicate rout pathways through which
goods and services flow from producer to customer . Channel of distribution
includes manufacturer , customer as well as intermediaries .
ROYAL PRESSURECOOKER INDUSTRY is ignore long
distribution channel. Distribution channel of Royal pressure cooker industry is as
follows :
PRODUCER
RETAILERS
CUSTOMER

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6. COMPETITORS
“Without competitor you can never win”
Competitor is one of the important partners of the company’s success without
competition one can never know about his limitations but it is also the biggest
hardly in success of the company.
ROYAL PRESSURE COOKER INDUSTRY also her some competitors but
because of good performance of them Industry are able enough to face and
compete with then
 Competitors of ROYAL PRESSURE COOKER INDUSTRY
 Prestige pressure cooker
 Vikaspressure cooker
 Hawkins pressure cooker
 Kumar pressure cooker
 Surajpressure cooker

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1. TOTAL FIXED ASSETS
A) Land & building
Land 25,00,000
Land development & fencing 1,00,000
Factory Building 5,00,000
Office building 3,00,000
Storage house 3,00,000
Bore well 50,000
Water tank 40,000
Main gate 50,000
Watchman’s Cabin 50,000
Lavatory & bathroom 50,000
Total 39,40,000

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B)Plant & machinery
Sr No. Particular Quantity Rate per
machine
Value
1. Cutting Machine 1 4,00,000 4,00,000
2. Stuffing Machine 2 2,00,000 4,00,000
3. Sewing Machine 1 1,73,000 1,73,000
Total 4 7,73,000 9,73,000

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C) Preliminary expenses
Sr. No. Particular Rs.
1. 1. Consultancy fees 20,000
2. 2. Project report preparation fees 30,000
3. 3. Legal expenses of company formation 30,000
Total 80,000

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D) Furniture
Sr
No.
Name of the item Quantity Rate per unit Amount
1. Ordinary table 8 6,000 48,000
2. Computer table 4 5,000 20,000
3. Chairs 120 500 60,000
4. Sofa seta 4 30,000 1,20,000
5. Fans 26 1,500 39,000
6. Light 32 500 16,000
7. Door &
windows
10
20
6,000
4,000
60,000
80,000
8. C.C.T.V. camera 7 5,000 35,000
9. Air conditioners 4 35,000 1,40,000
10. Refrigerators 3 30,000 90,000
11.. Computers 4 30,000 1,20,000
TOTAL 242 1,53,500 8,28,000

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TOTAL FIXED ASSETS
Particular Rs.
Land & building 39,40,000
Plant & machinery 9,73,000
Preliminary expenses 80,000
Furniture 8,28,000
Total 58,21,000

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2. TOTAL WORKING CAPITAL
A) RAW MATERIAL (MONTHLY)
Sr No. Particular Quantity
Kg.
Rate per
Kg.
Amount Rs.
1. 1. Aluminum circle 1,500 100 1,50,000
2. 2. Wishel 2,250 100 2,25,000
3. 3. Gas kit 3,000 100 3,00,000
4. Bakelite handle 3,000 100 3,00,000
5. Balk Patti 3,000 100 3,00,000
TOTAL 12,750 500 12,75,000

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B)Salary and wages
Designation No. of
employee
Salary per
month
Total amt.
monthly
General manager 1 14,500 14,500
Factory manager 1 12,500 12,500
Supervisor 1 10,000 10,000
Clark-cum cashier 1 10,000 10,000
Foreman 2 3,000 6,000
Computer operator 1 6,000 6,000
Salesman 1 4,000 4,000
Store keeper 1 3,000 3,000
Peon 1 2,000 2,000
TOTAL 10 65,000 68,000

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C) Utility (production facilities)
Particular Monthly amt.
Power 10,000
Fuel 4,000
Water 5,000
Oil and Grease 1,000
TOTAL 20,000

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C) Other expenses
Particular monthly
Postage & stationary 3,000
Telephone charges 4,000
Transport charges 6,000
Advertisement expenses 5,000
Insurance 2,000
Repair & maintenance 5,000
Selling expenses 4,000
Other miscellaneous expenses 1,000
TOTAL 30,000

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TOTAL WORKING CAPITAL
Sr No. Particular Amount
A. Raw material 12,75,000
B. Salary and wages 68,000
C. Utility 20,000
D. Other expenses 30,000
Working capital *3month 13,93,000*3
Total working capital 41,79,000

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(3) TOTAL INVESTMENTS
Sr No. Particular Amount
1. Total Fixed Assets 58,21,000
2. Total Working Capital 41,79,000
Total Investments 1,00,00,000

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(4) SOURCES OF CAPITAL
Total investment
1,00,00,000
Owned capital Borrowed capital
(60%) (40%)
60,00,000 40,00,000

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(5) LOAN REPAYMENT SCHEDUALE
Year Opening balance Interest12% Closing
1. 40,00,000 6,00,000 36,00,000
2. 36,00,000 5,40,000 32,00,000
3. 32,00,000 4,80,000 28,00,000
4. 28,00,000 4,20,000 24,00,000
5. 24,00,000 3,60,000 20,00,000
6. 20,00,000 3,00,000 16,00,000
7. 16,00,000 2,40,000 12,00,000
8. 12,00,000 1,80,000 8,00,000
9. 8,00,000 1,20,000 4,00,000
10. 4,00,000 60,000 -

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(6) DEPRICIATION FIXED ASSETS
(1) YEAR
Name of the assets Opening
balance
Depreciation Closing
balance
Land & building (10%) 39,40,000 3,94,000 35,46,000
Plant & machinery (15%) 9,73,000 1,45,950 8,27,050
Furniture (10%) 7,08,000 70,800 6,37,200
Computer (60%) 1,20,000 72,000 48,000
(2) YEAR
balance
balance
Land & building (10%) 35,46,000 3,54,600 31,91,400
Plant & machinery (15%) 8,27,050 1,24,057 7,02,993
Furniture (10%) 6,37,200 63,720 5,73,480
Computer (60%) 48,000 28,800 19,200
(3) YEAR
balance
balance
Land & building (10%) 31,91,400 3,19,140 28,72,260
Plant & machinery (15%) 7,02,993 1,05,449 5,97,545
Furniture (10%) 5,73,480 57,348 5,16,132
Computer (60%) 19,200 11,520 7,680

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(7) ESTIMATED PRODUCTION AND SALES
(A) Estimation of production
Sr No. Production
capacity
Unit of production
1. 1. 50% 18,000
2. 2. 75% 27,000
3. 3. 100% 36,000
(B) Estimated sales
year Opening
stock (unit)
Productio
n (unit)
Sales (unit) Closing
stock(unit)
1. - 18,000 16,200 1,800
2. 1,800 27,000 26,100 2,700
3. 2,700 36,000 35,100 3,600

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(8) STOCK OF RAW MATERIAL
Particular Year-1 Year-2 Year-3
Opening stock (unit) 0 1,800 2,700
+ purchases (unit)
19,800 27,900 36,900
_ Consumption 18,000 27,000 36,000
Closing stock in
Rs.
1,800 2,700 3,600

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(9) TOTAL FIXED EXPENSES
Particular Amount
Salary & wages (60%) 4,89,600
Utilities (50%) 1,20,000
Other expenses (70%) 2,52,000
Total fixed expenses 8,61,600
Fixed cost per unit = Total Fixed Cost At 100%
Total production at 100%
= 8,61,600
36,000
= 23.93

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(10) TOTAL VARIABLE EXPENSES
Particular year
Raw material 36,00,000
Salary & wages (40%) 6,52,800
Utility (50%) 2,40,000
Other expenses (30%) 2,16,000
Total 47,08,800
Variable cost per unit = Total Variable Expense
= 47,08,800
36,000
= 130.8

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(11) TOTAL COST
Total cost = total fixed expenses + total variable expenses
= 8,61,600 +47,08,800
=55,70,400
Total cost per unit = Total Cost
= 55,70,400
36,000
= 154.733

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(12) BREAK EVEN POINT IN UNIT
Break Even Point In Unit = Total fixed expenses
Selling price – variable Cost
= 8, 61,600
500–130
= 2,328

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(13) BREAK EVEN POINT IN RS.
Break Even Point in Rs. = BEP in Rs.* selling price per unit
= 2,328*500
= 11,64,000RS.

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TABLE SHOWING FIGURES OF SALES
year Prod. Capacity sales
(unit)
selling
price per
unit Rs.
total sales
Rs.
1 50% 16,200 500 81,00,000
2 75% 26,100 500 1,30,50,000
3 100% 35,100 500 1,75,50,000

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TABLE SHOWING FIXED EXPENSES
particular year-1 year-2 year-3
Salary & wages
(60%)
4,89,600 4,89,600 4,89,600
Utilities (50%) 1,20,000 1,20,000 1,20,000
Other exp.
(70%)
2,52,000 2,52,000 2,52,000
total 8,61,600 8,61,600 8,61,600

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TABLE SHOWING VARIABLE EXPENSES
Particular year-1 year-2 year-3
Raw material
(100%)
18,00,000 27,00,000 36,00,000
Salary &
wages (40%)
3,26,000 4,89,000 6,52,800
Utility (50%) 1,20,000 1,80,000 2,40,000
Other
expenses
(30%)
1,08,000 1,62,000 2,16,000
Total 23,54,400 35,31,600 47,08,800

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(14) TRADING ACCOUNT
(1) YEAR
Particular Rs. Particular Rs.
To opening stock
Raw material 0
Finish goods 0
To purchase of material
To salary & wages
To utilities
Gross Profit
_
19,80,000
3,26,000
1,20,000
67,53,600
91,80,000
By sales
Cash-40% 32,40,000
Credit-60% 48,60,000
By closing stock
Raw material
Finish goods
81,00,000
1,80,000
9,00,000
91,80,000

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MVM COLLEGE RAJKOT
(15) PROFIT AND LOSS ACCOUNT
(1) YEAR
To salary & wages
To utilities
To other expenses
Fixed exp. 2,52,000
Variable exp.1,08,000
To depreciation
Land & building
Plant & machinery
Furniture
Computer
To interest on bank loan
To interest on capital
(6%)
To preliminary expenses
To provision for taxes
NET PROFIT
4,89,600
1,20,000
3,60,000
3,94,000
1,45,950
70,800
72,000
6,00,000
3,60,000
80,000
12,18,372
28,42,868
67,53,590
Gross profit 67,53,590
67,53,590

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MVM COLLEGE RAJKOT
(16) BALANCE SHEET
(1) YEAR
liability Rs. Assets Rs.
Own capital 60,00,000
+ Interest on
Capital 3,60,000
+ Net profit 28,42,868
Provision for taxes
12 % Bank loan
Out Standing Interest
on Loan
Creditors
Bills Payable
92,02,868
12,18,372
36,00,000
6,00,000
2,97,000
29,700
1,49,47,940
Land &
Building 39,40,000
- dep. 3,94,000
Plant &
Machinery 9,73,000
- dep. 1,45,950
Furniture 7,08,000
- dep. 70,800
Computer 1,20,000
- dep. 72,000
Debtor
Bills Receivable
preliminary -
Expenses 80,000
- Written off 8,000
Closing stock
Raw material
+ finish Goods
Cash in hand
35,46,000
8,27,050
6,37,200
48,000
48,60,000
36,45,000
72,000
1,80,000
9,00,000
2,32,690
1,49,47,940

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MVM COLLEGE RAJKOT
TRADING ACCOUNT
(2) YEAR
To opening stock
Raw material
Finish goods
To salary & wages
To utilities
Gross Profit
1,80,000
9,00,000
27,90,000
4,89,600
1,80,000
1,01,30,400
1,46,70,000
By sales
Cash-40% 52,20,000
Credit-60% 78,30,000
By closing stock
Raw material
Finish goods
1,30,50,000
2,70,000
13,50,000
1,46,70,000

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MVM COLLEGE RAJKOT
PROFIT AND LOSS ACCOUNT
(2) YEAR
To salary & wages
To utilities
To other expenses
Fixed exp. 2,52,000
Variable exp. 1,62,000
To depreciation
Land & building
Plant & machinery
Furniture
Computer
(6%)
NET PROFIT
4,89,600
1,20,000
6,09,600
3,54,600
1,24,057
63,720
28,800
5,40,000
5,52,172
80,000
22,09,035
51,54,416
1,01,30,400
Gross profit 1,01,30,400
1,01,30,400

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MVM COLLEGE RAJKOT
BALANCE SHEET
(2) YEAR
Own capital 92,02,868
+ Interest on
Capital 5,52,172
Provision for taxes
12 % Bank loan
Out Standing Interest
on Loan
Creditors
Bills Payable
1,49,09,456
22,09,035
32,00,000
5,40,000
4,18,500
41,850
2,13,18,841
Land &
Building 35,46,000
- dep. 3,54,600
Plant &
Machinery 8,27,050
- dep. 1,24,057
Furniture 6,37,200
- dep. 63,720
Computer 48,000
- dep. 28,800
Debtor
Bills Receivable
preliminary -
Expenses 80,000
- Written off 2,000
Closing stock
Raw material
+ finish Goods
Cash in hand
31,91,400
7,02,993
5,73,480
19,200
78,30,000
58,72,500
72,000
2,70,000
13,50,000
14,37,268
2,13,18,841

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MVM COLLEGE RAJKOT
TRADING ACCOUNT
(3) YEAR
To opening stock
Raw material
Finish goods
To salary & wages
To utilities
Gross Profit
2,70,000
13,50,000
36,90,000
6,52,800
2,40,000
1,35,07,200
1,97,10,000
By sales
Cash-40% 70,20,000
Credit-60% 1,05,30,000
By closing stock
Raw material
Finish goods
1,75,50,000
3,60,000
18,00,000
1,97,10,000

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MVM COLLEGE RAJKOT
PROFIT AND LOSS ACCOUNT
(3) YEAR
To salary & wages
To utilities
To other expenses
Fixed exp. 2,52,000
Variable exp. 2,16,000
To depreciation
Land & building
Plant & machinery
Furniture
Computer
(6%)
NET PROFIT
4,89,600
1,20,000
4,68,000
3,19,140
1,05,448
57,348
11,520
4,80,000
8,94,567
80,000
31,44,293
73,36,684
1,35,07,200
Gross profit 1,35,07,200
1,35,07,200

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MVM COLLEGE RAJKOT
BALANCE SHEET
(3) YEAR
Own capital
1,49,09,456
+ Interest on
Capital 8,94,567
Provision for taxes
12 % Bank loan
Out Standing Interest on
Loan
Creditors
Bills Payable
2,31,40,707
31,44,293
28,00,000
4,80,000
5,53,500
55,350
3,01,73,850
Land &
Building 361,91,400
- dep. 3,19,140
Plant &
Machinery 7,02,993
- dep. 1,05,448
Furniture 5,73,480
- dep. 57,348
Computer 19,200
- dep. 11,520
Debtor
Bills Receivable
preliminary -
Expenses 80,000
- Written off 2,000
Closing stock
Raw material
+ finish Goods
Cash in hand
28,72,260
5,97,545
5,16,132
7,680
1,05,30,000
78,97,500
72,000
3,60,000
18,00,000
55,20,733
3,01,73,850

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MVM COLLEGE RAJKOT
(17) STATEMENT OF PROFITABILITY
particular year-1 year-2 year-3
sale
-variable
81,00,000
23,54,400
1,30,50,000
35,31,600
1,75,50,000
47,08,800
contribution
-fixed exp.
57,45,600
8,61,600
95,18,400
8,61,600
1,28,41,200
86,600
EBDIT
-Dep.
48,84,000
6,82,750
86,56,800
5,71,177
1,19,79,600
4,93,456
EBIT
-Int.on loan
Int.on capital
42,01,250
6,00,000
3,60,000
80,85,623
5,40,000
5,52,172
1,14,86,144
4,80,000
8,94,567
EBT
-Tax @ 30%
32,41,250
9,72,375
69,93,451
20,98,035
1,01,11,577
30,33,473
PAT 22,68,875 48,95,416 70,78,104

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MVM COLLEGE RAJKOT
(18) COST SHEET
PARTICULARS YEAR -1 YEAR -2 YEAR -3
Opening stockof raw –material _ 1,80,000 2,70,000
(+) purchase of Raw material 19,80,000 27,90,000 36,90,000
(-) Closing stockof Raw material 1,80,000 2,70,000 3,60,000
Consumption of Raw material 18,00,000 27,00,000 36,00,000
(+) salary wages 3.26,000 4,89,000 6,52,800
(+) Utilities 1,20,000 1,80,000 2,40,000
Prime cost 22,46,000 33,69,000 44,92,800
(+) Utilities 1,20,000 1,20,000 1,20,000
Factorycost 23,66,000 34,89,000 46,12,800
(+) salary-wages 4,89,600 4,89,600 4,89,600
(+) Other expenses 2,52,000 2,52,000 2,52,000
Office cost 31,07,600 42,30,600 53,54,400
(+) opening stock of finished goods - 9,00,000 13,50,000
(-) Closing stockof finished goods 9,00,000 13,50,000 18,00,000
Costof production 22,07,600 37,80,600 49,04,400
(+) Other expenses 1,08,000 1,62,000 2,16,000
Total cost 23,15,600 39,42,600 51,20,400
(+) profit 57,84,400 91,07,400 1,24,29,600
Sales 81,00,000 1,30,50,000 1,75,50,000

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MVM COLLEGE RAJKOT

69
MVM COLLEGE RAJKOT
RISK FACTOR
Every new business needs to determine its risk factors that the business will face. If
risk factors are carefully determined then the entrepreneur can take better measure
to see that they have limited effect on the business following are some of the risks
that the new business will face:-
 The risk of failure of the position
 It may take time to beat the competitor’s product.
 Due to heavy advertising, it might prove to be expensive and might not give
desired results.
 Initially, the production would be low but costof production may be higher.
 The business would take a longer period to reach breakeven point.
 Initially, the required amount of sales will not be achievable and will result in loss.
 Non-acceptance from the customer’s side.

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MVM COLLEGE RAJKOT

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MVM COLLEGE RAJKOT
SWOT ANALYSIS
Full form of “SWOT”:
STRENGTH:-
 Satisfaction of the consumer about the product of the company is main strengths.
 Best operation control for quality assurance.
WEAKNESS:-
 lack of co-ordination between various departments.
OPPORTUNITIES:-
 Every year 10% market growth and demand is higher than supply.
THREATS:-
 Government rules and regulation change every time.

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MVM COLLEGE RAJKOT
FUTURE PLAN
 Every units aims at its growth and development in future at the time of
establishment. The future development of any unit shows its success in the market.
Future development may be getting through the increasing installed capacity or
utilizing the existing resources of the unit to the full extend.
 So far as our unit is concern we have to utilize fully the available resources of our
unit and by increasing production capacity we want to cover none market share
with maintenance of good quality.
 There are so many varieties of pressure cooker in the market. The consumption of
pressure cooker has been increasing over the year. We want to cover more market
in India as well as in international level.

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MVM COLLEGE RAJKOT

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MVM COLLEGE RAJKOT
CONCLUSION
The motto of ROYAL PRESSURE COOKER will be to “provide best quality, with
fever prices.” The company will have to continue same motto and provide better at
lower rate.
One of the good things will be that we will hold briefing discussion every day. In
which, we discuss the problem and find solution.
Every business unit wants to earn maximum profit. But, ROYAL
PRESSURE COOKER aim will not only earn maximum profit but also take care
of people health.
We will never compromise with quality .this will be the way by which we can
capture the market as well as earn profit.

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MVM COLLEGE RAJKOT

77
MVM COLLEGE RAJKOT
Reference Book:
1. Marketing Management : Philip Kotler
2. Marketing Management : S.A Sherlekar
3. Finance Management : Khan & Jain

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MVM COLLEGE RAJKOT

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