Deluxe Fan Industry is a proposed small scale industry located in Shaper, India that will produce ceiling fans. The document provides details about the industry such as its vision to provide quality products and satisfy customers, justification for the plant location near raw materials and markets, production process involving casting, coloring and assembly, expected production capacity of 36,000 fans annually by the third year, and plans for quality control. The industry aims to utilize continuous production processes and target the market for ceiling fans used in homes and other buildings.

1. PPR ON CEILING FAN
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2. PPR ON CEILING FAN
1.1 INTRODUCTION TO SSI
The small scale industry has emerged as the most dynamic sector
of
Indian industrial economy accounting for ever 55% of the total value of
industrial production over 40% of the country’s exports & more importantly
providing employment opportunities to over 175 lac people in 3175 units. All
along it has shown the growing spirit of entrepreneurship. In other words, small
business is the Open University for entrepreneurs to translate their vision
innovative ideas into reality. It is thus the seed of entrepreneurial dreams.
Small scale industry in India roughly provides employment to about 4.4
million people and constitutes a large position of the country’s exports. The
govt. of India is well aware of the importance of small scale industry in our
economy and growth of small scale industry i.e. establishment of various SSIs.
All India Boards that give technical, financial and other relevant guidance to
small scale industries, other benefits & concessions. Cottage & small scale
industry have flourished in India since the early times. Even today Industry are
a principal source of income & employment and their product find ready
market in the country as well as abroad.
DELUXE FAN INDUSTRY will be small scale industry which have
investment of Rs./-10000000. Deluxe fan industry will produce celling fan.
This industry will have 31 employees.
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3. PPR ON CEILING FAN
1.2 INTRODUCTION TO PPR
In to today’s area of market there is so many substitute product
which is used in absent of one product. DELUXE FAN INDUSTRY will
produce celling fan for the use of industry or house hold purpose. The industry
will produce decorative fan for its consumer.Industry will use oil paint as well
as color paint in its ceiling fan. This type of fan is generally used in the
different industry, houses, schools, colleges, organization, banks, etc. it gives
coolest air. Demands for fan will high at the time of summer. Deluxe fan
industry will reached his fan with help of dealers or wholesaler. This type of
product is also produce by other industry which is situated near to deluxe fan
industry. Sandy fan, orpate fan, usha fan are produce fan like the deluxe fan.
Deluxe fan industry will produce fan which have different design, different
color, different size etc. Deluxe fan industry will used quality raw-materials,
latest machinery, and produced by skilled employee as well engineer of
industry.
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4. PPR ON CEILING FAN
1.3 PROJECT AT A GLANCE
Name of the Unit “DELUXE FAN”
Tag line “Always fill fresh & cool air ”
Promoter’s Name Sirja Vidya M.
Communication address : DELUXE FAN INDUSTRY
Survey No. 237/238
Plot No.3,4 &7B,NH8-B
Shaper (veraval) DIS.-Rajkot
Registration office Address Sundaram complex, Neharunagar,
Rajkot-360002.
Telephone No. 0281-252914
Fax No. +91-2827-252700
Form of Organization Partnership firm
Size of the unit small scale industry
Brand Name “Deluxe”
Usage of the product Industry or House hold purpose
SSI Registration No. Applied for
Number of employee 31
Investment 1,00,00,000
Day off Wednesday
Sources of finances 1.Owner’s capital (60%) 60,00,000
2.Borrowed capital (40%)
40,00,000
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5. PPR ON CEILING FAN
Investment in working capital 41,79,000
Investment in fixed capital 58,21,000
Relation with Bank State bank of India
LOGO of Company
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6. PPR ON CEILING FAN
1.4 PROMOTER’S BACKGROUND
Name Sirja Vidya M.
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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7. PPR ON CEILING FAN
1.5 JUSTIFICATION OF LOCATION
DELUXE FAN INDUSTRY 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. Raw-
material like nut bolt, capacitors, wires are easily available at near to shaper so,
this location is suitable for deluxe fan industry.
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 will have ready market for selling of
product. Deluxe fan will establish near to market.
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8. PPR ON CEILING FAN
4. Availability of labor:-
Worker or labors are the most imported person in the industry.
If labor gets easily then we can control or reduce the cost of production. At
shaper, labors get at cheaper rate because of industrial zone.
NATIONAL HIGH WAY
SHAPER CHOKDI
DELUXE FAN INDUSTRY
Survey No. 237/238
Plot No.3, 4 &7B, NH8-B
Shaper (veraval) DIS.-Rajkot
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RAJKOT
DELUXE
FAN
INDUSTRY
SHAPER
VILLAGE

9. PPR ON CEILING FAN
1.6 ORGANISATION CHART
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PRODUCTION
MANAGERR
PRODUCTION
MANAGERR
H R
MANAGER
H R
MANAGER
MARKETING
MANAGER
MARKETING
MANAGER
FINANCE
MANAGER
FINANCE
MANAGER
SUPERVISIORSUPERVISIOR EMPLOYEESEMPLOYEES SALES MANSALES MAN ACCOUNTANTACCOUNTANT
WORKERWORKER CLERKCLERK

10. PPR ON CEILING FAN
1.7 VISION AND MISSION
VISION:-
Vision of the deluxe fan industry will maximum customer
satisfaction by providing qualitative and good product to customer. Job
satisfaction of employee will also short goal of the industry.
MISSION:-
Mission of deluxe fan industry will expanding market as well as
market share of industry. Industry wants to convert small scale industry in
medium scale industry with the customer satisfaction. Industry wants to build
strong image in the market.
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11. PPR ON CEILING FAN
1.8 BASIS AND PRESUMPTION
The proposed production of 36,000 per annum of Ceiling Fan more than
300 working days in a year.
Shift Single shift
Working hours 8:00Am to 6:00Pm
Break 12:00Pm to 1:00Pm
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 cost has been taken on an average basis
science it varies from place to place.
The cost of machinery & equipment has been proposed after consulting the
machinery supplier nearly all the machines are available locally.
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12. PPR ON CEILING FAN
1.9 IMPLEMENTATION SCHEDUL
No. Particulars Time Period
1. Preparation of Project Report 1 Month
2. Acquisition of Land 1 Month
3. SSI Registration 22 days
4. Approval of loan 20 Days
5. Construction of Building 2 Months
6. Acquisition of Machinery 1 Month
7. Installation of Machinery 1 Month
8. Arrangement of Power 1 Month
9. Appointment of Staff &Labour 22 Days
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13. PPR ON CEILING FAN
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14. PPR ON CEILING FAN
2.1 PLANT LAYOUT
There are mainly two types of plant layout.
1) Process layout
2) Product 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 cost be available. Proper plant layout is one of
keys of success in factory management. It signifies arrangement of
machines work area transport shorting of materials and processing to
different parts.
DELUXE FAN INDUSTRY will have systematic plant layout
which is reduce the unnecessary motion of employees. Industry will
arrange their store room near to production plan so Industry will
eliminate damage of raw-materials or finished product. Industry will
arrange his machinery in that way which reduces movement of raw-
material.
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15. PPR ON CEILING FAN
2.2 RAW MATERIAL
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.
Raw-material is essential elements of any product without it no
one is produce any things or product. 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.
MACHINARY & RAW-MATERIAL which is used by DELUXE
FAN INDUSTRY for producing ceiling fan:-
RAW-MATERIAL OF CILING FAN :-
CEILING FAN BODY, CEILING FAN BLADE,ARMACHER,
BARRING, CAPICATOR,CEILING FAN WIRING,CAPICATOR
CLAMP,CELLING FAN CLAMP,EARTHING WIRES,NUTTS & BALLS
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16. PPR ON CEILING FAN
2.3 MACHINERI 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.
MACHINARY :-
HYDROLIC POWER PRESS, CELLING FAN WIRING MACHINE, LATH
MACHINE, DAI TOOL POWER PRESS, POWER CASTING,
PVC MOLDING, BLADE CUTTER, OILING MACHINE
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17. PPR ON CEILING FAN
2.4 SUPPLIERS OF MATERIAAND MACHINERY
Suppliers of DELUXE FAN INDUSTRY will as
follow :-
1. Wires : BIC company
2. Casting materials : TATA company
3. Armechars : DR. BACK company
4. Capicators : Dell korn company
5. Nutt bolt : local market
6. Celling fan clamp : graver company
MACHINARY :-
CELLING FAN WIRING MACHINE: - Shiv Wiring industry
Ahmadabad
LATH MACHINE: - Parth limited
Ahmadabad
OILING MACHINE: - Tinytech pvt. ltd.
Surat
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18. PPR ON CEILING FAN
2.5 FLOW CHART OF PRODUCTION PROCESS
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19. PPR ON CEILING FAN
2.6 PRODUCTON PROCESS
There is many manufacturing process like job shop process,
continuous process, mass production process etc. DELUXE FAN INDUSTRY
is just produce the ceiling fan. This type of fan is use in so many places. Deluxe
fan industry is used continuous manufacturing process because it is based on
sequences. The manufacturing process of ceiling fan is as under:
1. Material casting :-
First of all mixed material and put down in to casting
machine.
2. Turning :-
After casting of material put down all items in to the lath
machine for the purpose of turning.
3. Oil coloring :-
After preparation of body, coloring is required. There is use
oil color as well as powder color for coloring process.
4. Stamping rotter :-
After oil color of full body of fan is completed. Then
Industry have to joint wires of armacher. These wires must be copper
wires.
5. Fitting :-
Last step of process is joining all the wires with the other and
fit it in to the fan’s body.
This is the process of manufacturing fan in the industry which will
followed by the deluxe fan industry
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20. PPR ON CEILING FAN
2.7 PRODUCTION CAPACITY
Year Installed
capacity
Utilized
capacity
Units
1 100% 50% 18,000
2 100% 75% 27,000
3 100% 100% 36,000
4 100% 100% 36,000
5 100% 100% 36,000
1) No. of shifts per day: 1 shift
2) No of working hours per shift: 8 hours
3) No. of working days in a year.: 312 days
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21. PPR ON CEILING FAN
2.8 POLLUTION CONTROL & ENERGY
CONVERSION
POLLUCTION CONTROL:
• The entrepreneur is advice to contact concerned state pollution control
board for detailed guidance in the matter.
• “Deluxe fan industry” 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 machines should be &
properly installed.
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22. PPR ON CEILING FAN
2.9 QUALITY CONTROL AND STANDARD
“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 product or 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 DELUXE FAN INDUSTRY will be much conscious about its
product and quality. Industry will produce electronically items so proper
control is required. Industry will be use 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.
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23. PPR ON CEILING FAN
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24. PPR ON CEILING FAN
3.1 MARKET POTENTIAL
• The market potential for ceiling fan is huge. While there are all people
who prefer to buy the ceiling fan Thus, initially we will try to exploit
this segment of market. We would also like to draw the attention people
which use different type of celling fens.
• All public is fond of ceiling fan especially in India. celling fan use in
industry or house hold purpose. In Market our product will be available
easily.
We are producing and supplying the product as per the demand.
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25. PPR ON CEILING FAN
3.2 MARKET SEGMENTATION
“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.”
According to PHILIP
KOTLER
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
DELUXE FAN INDUSTRY will segment his market on
the basis of geographic basis. Industry has local market. Industry has
industrial users and consumer users. Demand of fan is increase in time of
summer
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26. PPR ON CEILING FAN
3.3 PROMOTIONAL EFFORTS
According to H.R. DELENS:-
“Sales promotion means any steps that are taken for the purpose of
obtaining or increasing sales. Often this term refers to selling efforts that are
designed to supplement personal selling and advertising and by coordination
help them to become more effective “
Methods of sales promotion:-
1. Discount to intermediate
2. Discount to customer
3. Sales promotion
In DELUXE FAN INDUSTRY, Industrywill give discount to its retailer and
give lucky coupons to its customer. Industry will give commission and other
intensive to its salesmen for promoting them. It will have greater impact on
sales of company.
.
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27. PPR ON CEILING FAN
3.4 PRICING POLICY
Price is the exchange value of as goods and services in terms of
money in other word price of product or services is what the sell or
feels me worth in terms of money to the buyers and sellers as without
prices market cannot exits.Pricing policy has significant important in any
enterprise. Pricing govern the very facility of any marketing programmer
economist defines prices is the exchange of value of goods of services
in term of money .
There are three basic pricing policy which are as below :
1. Cost oriented pricing policy
2. Demand pricing policy
3. Competition oriented pricing policy
DELUXE FAN INDUSTRY will adopt COST PLUS
PRICING POLICY these types of prices cover the full cost occurred
and industry adds some percentage of margins of profit.
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28. PPR ON CEILING FAN
3.5 DISTRIBUTION CHANNEL
According to WILLIAM J.STANTON:-
“A channel of distribution for a product is the route
taken by the title to the goods as Industry move from the producer to 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 .
DELUXE FAN INDUSTRY will ignore long distribution
channel. Distribution channel of deluxe fan industry will be as follows:
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PRODUCERPRODUCER
RETAILERRETAILER
WHOLESELLERWHOLESELLER

29. PPR ON CEILING FAN
3.6 COMPETITORS
Competition may be with :
 Competitors are offering similar product and services to the same
customer at similar price or sometimes lower than that .
 Industry are diversifying to have more big range of products with
range of specification with each one .
 All companies are now in E-BUSINESS so as to have bigger
market share .
Competitors of DELUXE FAN INDUSTRY are,
1. SANDY FAN INDUSTRY
2. USHA FAN INDUSTRY
3. ORPATE FAN INDUSTRY
4. ORIENT FAN INDUSTRY
5. CROMTAN FAN INDUSTRY
6. ANCHOR FAN INDUSTRY
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CUSTOMERCUSTOMER

30. PPR ON CEILING FAN
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31. PPR ON CEILING FAN
A) TOTAL FIXED ASSETS
A-1) 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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32. PPR ON CEILING FAN
A-2) 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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33. PPR ON CEILING FAN
A-3) Preliminary expenses
Sr. No. Particular Rs.
1. Consultancy fees 20,000
2. Project report preparation fees 30,000
3. Legal expenses of company
formation
30,000
Total 80,000
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34. PPR ON CEILING FAN
A-4) 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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35. PPR ON CEILING FAN
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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36. PPR ON CEILING FAN
B) TOTAL WORKING CAPITAL
B-1)RAW MATERIAL (MONTHLY)
Sr No. Particular Quantity
Kg.
Rate per
Kg.
Amount Rs.
1. Ceiling fan body 1,500 100 1,50,000
2. Capacitor 2,250 100 2,25,000
3. Ceiling fan clamp 3,000 100 3,00,000
4. Earthing wires 3,000 100 3,00,000
5. Natts & balls 3,000 100 3,00,000
TOTAL 12,750 500 12,75,000
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37. PPR ON CEILING FAN
B-2)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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38. PPR ON CEILING FAN
B-3) 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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39. PPR ON CEILING FAN
B-4) 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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40. PPR ON CEILING FAN
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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41. PPR ON CEILING FAN
(C) 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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42. PPR ON CEILING FAN
(D) 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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43. PPR ON CEILING FAN
(E) 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 -
(F) DEPRICIATION FIXED ASSETS
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44. PPR ON CEILING FAN
(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
Name of the assets Opening
balance
Depreciation Closing
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
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45. PPR ON CEILING FAN
Name of the assets Opening
balance
Depreciation Closing
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
(G) ESTIMATED PRODUCTION AND SALES
(A) Estimation of production
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46. PPR ON CEILING FAN
Sr No. Production
capacity
Unit of production
1. 50% 18,000
2. 75% 27,000
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
(H) STOCK OF RAW MATERIAL
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47. PPR ON CEILING FAN
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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

48. PPR ON CEILING FAN
(I) 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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49. PPR ON CEILING FAN
(J) 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
Total production at 100%
= 47,08,800
36,000
= 130.8
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50. PPR ON CEILING FAN
(K) 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
Total production at 100%
= 55,70,400
36,000
50
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51. PPR ON CEILING FAN
= 154.733
(L) BREAK EVEN POINT (IN UNIT)
Break Even Point In Unit = Total fixed expenses
Selling price – variable Cost
= 8, 61,600
500–130
= 2,328
51
MVM COLLEGE RAJKOT

52. PPR ON CEILING FAN
(M) BREAK EVEN POINT (IN RS.)
Break Even Point in Rs. = BEP in Rs.* selling price per unit
= 2,328*500
= 11, 64,000 RS.
52
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53. PPR ON CEILING FAN
(N)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
53
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54. PPR ON CEILING FAN
(O)TABLE SHOWING FIXED EXPENSES
54
MVM COLLEGE RAJKOT
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

55. PPR ON CEILING FAN
(P)TABLE SHOWING VARIABLE EXPENSES
55
MVM COLLEGE RAJKOT
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

56. PPR ON CEILING FAN
(Q) FINAL ACCOUNTS
FINAL ACCOUNTS YEAR-1
Trading A/C
Particular Amt. Particular Amt.
56
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57. PPR ON CEILING FAN
Opening stock
Raw material -
Finish goods -
Pur. Of raw material
Salary and wages
Utilities
Gross profit
-
19,80,000
3,26,000
1,20,000
67,53,600
91,80,000
Sales
Cash 40% 32,40,000
Credit 60% 48,60,000
Closing stock
Raw material
Finish goods
81,00,000
1,80,000
9,00,000
91,80,000
57
MVM COLLEGE RAJKOT

58. PPR ON CEILING FAN
PROFIT AND LOSS A/C
Particular Amt. Particular Amt.
Salary-wages
Utilities
Other expenses
Depreciation
Land & building
Plant & machinery
Furniture
Computer
Interest on bank
Interest on capital
Preliminary exp. Written
off
Provision for tax
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
2,18,372
28,42,868
67,53,590
Gross profit 67,53,590
67,53,590
58
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59. PPR ON CEILING FAN
Balance sheet
Liability Amt. Assets Amt.
Owned capital 60,00,000
+ interest @6% 3,60,000
+net profit 28,42,868
12% bank loan
Interest on loan
Creditors
Bills payable
Provision for tax
92,02,868
36,00,000
6,00,000
2,97,000
29,700
12,18,372
1,49,47,940
Land & building 39,40,000
-depreciation 3,94,000
Plant & machine9,73,000
-depreciation 1,45,950
Furniture 7,08,000
-depreciation 70,800
Computer 1,20,000
-depreciation 72,000
Debtors
Bills receivable
Preliminary exp. 80,000
-written off 2,000
Closing stock
Cash in hand
35,46,000
8,27,050
6,37,200
48,000
48,60,000
36,45,000
72,000
10,80,000
2,32,690
1,49,47,940
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60. PPR ON CEILING FAN
FINAL ACCOUNTS YEAR-2
Trading A/C
Particular Amt. Particular Amt.
Opening stock
Raw material 1,80,000
Finish goods 9,00,000
Pur. Of raw material
Salary and wages
Utilities
Gross profit
10,80,000
27,90,000
4,89,600
1,80,000
1,46,70,000
Sales
Cash40% 52,20,000
Cradit60% 78,30,000
Closing stock
Raw material
Finish goods
1,3050,000
2,70,000
13,50,000
1,46,70,000
60
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61. PPR ON CEILING FAN
PROFIT AND LOSS A/C
Particular Amt. Particular Amt.
Salary-wages
Utilities
Other expenses
Depreciation
Land & building
Plant & machinery
Furniture
Computer
Interest on bank
Interest on capital
Preliminary exp. Written
off
Provision for tax
Net profit
4,89,600
1,20,000
3,60,000
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
61
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62. PPR ON CEILING FAN
Balance sheet
Liability Amt. Assets Amt.
Owned capital 92,02,868
+ interest @6% 5,52,172
+net profit 51,54,416
12% bank loan
Interest on loan
Creditors
Bills payable
Provision for tax
1,49,09,456
32,00,000
5,40,000
4,18,500
41,850
22,09,035
2,13,18,841
Land & building 35,46,000
-depreciation 3,54,600
Plant & machine 8,27,050
-depreciation 1,24,057
Furniture 6,37,200
-depreciation 63,720
Computer 48,000
-depreciation 28,800
Debtors
Bills receivable
Preliminary exp. 80,000
-written off 2,000
Cash on hand
Closing stock
31,91,400
7,02,993
5,73,480
19,200
78,30,000
58,72,500
72,000
14,37,268
16,20,000
2,13,18,841
62
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63. PPR ON CEILING FAN
FINAL ACCOUNTS YEAR-3
Trading A/C
Particular Amt. Particular Amt.
Opening stock
Raw material 2,70,000
Finish goods 13,50,000
Pur. Of raw material
Salary and wages
Utilities
Gross profit
16,20,000
36,90,000
6,52,800
2,40,000
1,35,07,200
1,97,10,000
Sales
Cash 40% 70,20,000
Credit 60% 1,05,30,000
Closing stock
Raw material
Finish goods
1,75,50,000
3,60,000
18,00,000
1,97,10,000
63
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64. PPR ON CEILING FAN
PROFIT AND LOSS A/C
Particular Amt. Particular Amt.
Salary-wages
Utilities
Other expenses
Depreciation
Land & building
Plant & machinery
Furniture
Computer
Interest on bank
Interest on capital
Preliminary exp. Written
off
Provision for tax
Net profit
4,89,600
1,20,000
4,68,600
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
64
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65. PPR ON CEILING FAN
Balance sheet
Liability Amt. Assets Amt.
Owned capital 1,49,09,456
+ interest @6% 8,94,567
+net profit 73,36,684
12% bank loan
Interest on loan
Creditors
Bills payable
Provision for tax
2,31,40,707
28,00,000
4,80,000
5,53,500
55,350
31,44,293
3,01,73,850
Land & building 31,91,400
-depreciation 3,19,140
Plant & machine 7,02,993
-depreciation 1,05,448
Furniture 5,73,480
-depreciation 57,348
Computer 19,200
-depreciation 11,520
Debtors
Bills receivable
Preliminary exp. 80,000
-written off 2,000
Cash on hand
Closing stock
28,72,260
5,97,545
5,16,132
7,680
1,05,30,000
78,97,500
72,000
1,35,16,783
21,60,000
3,01,73,850
65
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66. PPR ON CEILING FAN
(R) STATEMENT OF PROFITABILITY
particular year-1 year-2 year-3
sale
-variable
81,00,000
23,54,400
1,30,50,00
0
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
66
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67. PPR ON CEILING FAN
(S) COST SHEET
PARTICULARS YEAR -1 YEAR -2 YEAR -3
Opening stock of raw –material _ 1,80,000 2,70,000
(+) purchase of Raw material 19,80,000 27,90,000 36,90,000
(-) Closing stock of 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
Factory cost 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 stock of finished goods 9,00,000 13,50,000 18,00,000
Cost of 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
67
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68. PPR ON CEILING FAN
68
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69. PPR ON CEILING FAN
RISK FACTOR
In starting phase of any industry Industry have not much problems
related to competition. After some time industry face this type of problems. As
the expansion of business risk is also increase. This risk factors are as follow :
 Many industrial estate is establish in the shaper so Industry may reduce
market share of deluxe fan.
 Due to the high price of deluxe fan, competitor may reduce the price, and
sales of deluxe fan is reduce or fall down.
 Sales of fan will reduce due to increasing demand of air cooler.
69
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70. PPR ON CEILING FAN
SWOT ANALYSIS
70
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71. PPR ON CEILING FAN
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:-
.
• By making some good promotional efforts, company can gain more no.
of customers who will be loyal.
• Every year 10% market growth and demand is higher than supply
THREATS:-
• Government rules and regulation change every time.
71
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72. PPR ON CEILING FAN
72
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73. PPR ON CEILING FAN
7.FUTURE PLAN
Every units airs 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.
Future plan of DELUXE FAN INDUSTRY is as follow :-
 Industry want to produce fan with aluminum body which incurred low
cost of production.
 Industry will have to expanding his business through increasing sales of
industry.
 Industry want to turn its industry in medium scale industry.
 Industry want to increase production capacity and optimum utilization of
resources.
 Industry want to establish another plantin other area.
73
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74. PPR ON CEILING FAN
CONCLUSIONS
74
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75. PPR ON CEILING FAN
FAN INDUSTRY will small scale industry which have DELUXE
investment of 10000000. It’s have 31employee who run the business. Deluxe
fan industry will produce ceiling fan .this type of ceiling fan will used in house,
schools, organization etc. so the demand of this fan or product is high in the
market. Customer satisfaction will high due to best quality, reasonable price.
Employee satisfaction will also high because Industry have good working
environment, proper working facility and good relation with employer and
employee.
Deluxe fan industry will earn good profit and Industry also want
to expand their business in the market. Market share of company will also high
due to best efforts of salesmen of industry. In future deluxe fan industry will
have good name in field of electronics.
75
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76. PPR ON CEILING FAN
REFERENCES
76
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77. PPR ON CEILING FAN
The books referred by me for the report are as follows:
SR.
NO.
NAME OF THE BOOK AUTHOR
1. Management Of Small Scale
Industries
-Vasant Jain
2. Marketing Management - Philip Kotler
3. Financial Management -By Khan & Jain
-By J.M. Pandey
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