Essen Nature Pvt. Ltd. is a small-scale puffed rice manufacturing company located in Dhanbad, Jharkhand. It was established in 2021 by 5 partners with an initial capital of Rs. 9,45,000. The company aims to provide high quality puffed rice and earn sufficient profits while also contributing to social development. Essen Nature produces puffed rice through a process involving conditioning, drying, puffing in guns under heat and pressure, and then exploding the rice into a cage. A cost analysis was presented showing the various costs incurred and the expected profits from sales.

1. UNDER GUIDANCE OF
DR. SRABONI DUTTA
PRESENTED BY:
RIYA TIWARI :MBA/10086/20
PRINCE KUMAR :MBA/10087/20
ANANYA JAISWAL :MBA/10088/20
BHARTI SHARMA :MBA/10089/20
SUPRIYA :MBA/10090/20
Essen
Nature
BIRLA INSTITUTE OF TECHNOLOGY, MESRA, RANCHI,
JHARKHAND- 835215
COST
ANALYSIS

2. PRESENTATION
COVER TOPICS
Essen
Nature
I. Description
II. Profile
III. Objective of business
IV. Organization Structure
V. Market
VI. Location
VII. Product
VIII.Process of making puffed rice
IX. SWOT analysis
X. Cost Accounting

3. AboutUs
3
Essen Nature pvt.Ltd. is retail and
wholesale puffed rice manufacturing
company. The plan of Essen is to maintain
the interest of our customers by providing
quality product.
• Essen Nature is incorporated in the state
of Jharkhand with the capital of 9,45,000
INR. We have 5 shareholders, Rs.
1,89,000/ each.
• Our company will be equally own and
manage by our 5 partners.
• These partners represent
sales/management and
finance/administration areas,
respectively. The partners will provide
funding from their own savings, which
will cover startup expenses and provide a
finance for the first three months of
operation.
ESSEN NATURE

4. Objectives of business
4
• There are many objective such as to contribution in the development of the
country, social responsibility, business profits etc.
ESSEN NATURE main objectives are
• To earn sufficient profit.
• To provide high quality products.
• To provide social facilities.
• Elimination of customer problems.
• Contribution in the development of the country.
ESSEN NATURE

5. PROFILE
5
 Name :- Essen Nature Pvt. Ltd.
 Area of Location :- Dhanbad, Jharkhand
 Contact No. :– 06542-259239
 partners :– Riya Tiwari
Prince Kumar
Ananya Jaiswal
Bharti Sharma
Supriya
 Size of unit :- Small scale sector
 Establishment year :– 2021
 Accounting year :- January to December
ESSEN NATURE

6. MARKET
• Increasing demand for healthy snack food in breakfast is
fuelling the market for puffed food. With the increase in
demand for muri, farmers are growing more rice to
meet the demands.
• Essen Nature wants to regulate a large customer base,
and will therefore concentrate its business and
marketing on local residents which will be the dominant
target market. This will establish a healthy, consistent
revenue base to ensure stability in the business.
6
ESSEN NATURE

7. LOCATION
• WE WILL ESTABLISH OUR PUFFED RICE
UNIT IN DHANBAD, JHARKHAND.
• DUE TO ITS FAVOURABLE AGRO-CLIMATIC
CONDITIONS AND RICH NATURAL
RESOURCES.
7
ESSEN
NATURE

8. PRODUCT
8
ESSEN NATURE
• Essen provides freshly, contamination
free, good colour, crisped & uniformly
puffing puffed rice.
• During the process grains of rice get
damaged due to heat and pressure, which
is known a broken rice and it will be
considered as our by-product.

9. PROCESSOF
MAKINGPUFFED
RICE
9
Grains conditioned and dried to 15-16%
moisture.
Charged into puffing guns.
Puffing Guns are typically pressure vessels.
Grains are charged to the gun through
gravity chute, other end is closed with a trip-
valve.
Due to heat provided, steam generated.
In 5-7 mins, temp reaches 500-800°F
Pressure developed is 100-200psi.
When pressure reaches predetermined level
end of the gun is suddenly opened.
Contents explodes to into a cage.

10. Strengths
1. Positive work
environment.
2. Labour welfare programs.
1. Limited investment.
Threats Weaknesses
SWOT ANALYSIS
10
Opportunities
1. Perfect competition prevailing in the
market.
2. New entrants.
1. Stable economy.
2. Good government norms (tax subsidy).
3. New scope to expand business through
online platforms.
ESSEN NATURE

11. COSTANALYSIS
11
Particulars Amount
Opening Stock of Raw Material
Add: Purchase of Raw Material 41,67,800
Less: Closing stock of Raw Materials 22,000
Raw Material Consumed 41,45,800
Direct Wages (Labour) 11,76,000
Bonus, incentives 38,000
Direct Charges (Carriage Inward) 9,600
ESSEN NATURE

12. 12
ESSEN NATURE
1) Prime Cost 41,93,400
Add: Factory Over Heads:
Factory Rent 7,20,000
Factory Power 1,92,500
Indirect Wages Supervisor Salary 1,44,000
Bonus and incentive 15,000
Production In charge salary and supervisor salary 2,40,000
Factory Asset Depreciation 60,000
Work Cost incurred 55,49,900
Less: Closing Stock of WIP 16,000

13. 13
ESSEN NATURE
2) Works Cost 55.33,900
Add: Administration Over Heads:
Miscellaneous Expenses 12,000
Repair & Maintenance 5,000
Depreciation (Furniture and Fixtures) 1,000
Accountant Salary 1,80,000
Bonus, incentives and overtime 12,000
Printing and Stationary 9,600
Telephone Charges 3,600
Insurance 10,000

14. 14
3) Cost of Production 57,67,100
Less: Closing Stock of Finished Goods 2,74,287
4) Cost of Good Sold 54,92,813
Add: Selling and Distribution OH:
Sales man Salary 1,02,000
Bonus incentive 9,000
Travelling Expenses 48,000
Delivery man Expenses 72,000
Sales Expense 44,000
5) Cost of Sales 57,67,813
Profit (balancing figure) 46,09,495
Sales 1,03,77,308
ESSEN NATURE

15. THANKYOU
06542-259239
15
ESSEN NATURE
ESSEN NATURE PVT. LTD