Especiero Rasam Powder Project Report

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A
PRODUCT PROJECT REPORT ON
Prepared by
Name : Reena John
Roll no : 91
Seat no : -
Class : B.B.A sem-v
Academic year: 2014-15
College
Matushri Virbaima Mahila College of COMMERCE
MANAGEMENT AND I.T.
Guided by
Prof. Dharti Nathwani
Prof. Kalpesh Radiya
Submitted to
Saurashtra University

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DECLARATION
I undersigned REENA JOHN student of B.B.A SEM- V hereby declare that the
project report is my own work and has been carried out under the guidance and
supervision of prof. Dharti Nathwani and prof. Kalpesh Radiya of
MVM COLLEGE OF COMMERCE, MANAGEMENT AND I.T., RAJKOT
affiliated to Saurashtra University.
This work has not been previously submitted to any other university for any
other examination.
Date: Signature
Place:
Reena John

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PREFACE
BBA is course in which practical aspect is an important as theoretical
aspect. The growth of economy is depends upon skilled managers and BBA
course fulfils this need the practical studies give an idea to the student about
problem they have to face in future of their managerial life.
The contribution of small scale industries is 40% in the economic growth rate
of the country. So, it is essential to understand management and working of
small scale industries as a student of management. Small scale business has
been included to create and development entrepreneur skill among the student.
It is highly essential as a student of management to understand management of
SSI in MBA The subject entrepreneurship and management of small business
are included to give student the practical knowledge of the student. Thus we can
get clear picture that how to manage small scale business and how to avoid
difficulties in the way. So, I am presenting Business plan on “Especiero Rasam
Powder”

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ACKNOWLEDGEMENT
To complete this project many persons have helped me. I am thankful to all who
have helped me to complete this report.
Very first, I thank to Saurashtra University to give me such an opportunity.
Secondly, I would like to thank my college MATUSHRI VIRBAIMA MAHILA
COLLEGE OF COMMERCE MANAGEMENT AND I.T. to give this
opportunity to appear such a wonderful project report on Rasam powder.
My most thank to director MRS. BINA .S .DAVE for giving me permission and
providing me each and every necessary information.
Heartily thanks to our PROF. DHARTI NATHWANI and PROF. KALPESH RADIYA
to guide us in proper way and in such a manner, that we have not felt any
difficulty during project.
Last but not least my god my parents and my friends without their motivation, I
could not able to prepare this project in well format way.
Date: Signature
Place:
Reena John

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General index
No. Particular Pg no.
1. General aspects
2. Technical aspects
3. Market aspects
4. Financial aspects
5. Risk factors
6. Swot analysis
7. Future plans
8. Conclusions
9. References

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GENERAL ASPECTS

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General aspects
1. Introduction to SSI
2. Introduction to PPR
3. Project at glance
4. Promoters background
5. Justification of location
6. Organization chart
7. Vision , mission of the company
8. Basis and presumption
9. Implementation schedule

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Introduction to SSI
Since the time of independence, the small-scale sector in India has been a
major contributor to country’s Gross Domestic Product (GDP). This traditional
sector in India is considered to have huge growth prospect with its wide range
of products. With 40 percent share in total industrial output and 35 percent share
in exports, the small-scale industrial sector in India is acting as Engine of
Growth in the new millennium.
Small sector units are those engaged in the manufacture, processing or
preservation of goods and whose investment in plant and machinery (original
cost) does not exceed Rs. 3 Crore. These would, inter alia, include units
engaged in mining or quarrying, servicing and repairing of machinery. In the
case of ancillary units, the investment in plant and machinery (original cost)
should also not exceed Rs. 1 Crore to be classified under small-scale industry.
Small businesses are normally privately owned corporations, partnerships, or
sole proprietorships. In addition to number of employees, other methods used to
classify small companies include annual sales (turnover), value of assets and net
profit (balance sheet), alone or in a mixed definition.
The details of the items reserved for SSIs are given below:
Food and allied industries (9) Wood and wood products (9) Paper products (19)
Plastic products (53) Chemicals and chemical products (7) Natural essential oils
(2) Organic chemicals, drugs and drug intermediates (33) Other chemicals and
chemical products (67) Glass and ceramics (27) Mechanical engineering
excluding transport equipment (137) Electrical machines, appliances &
apparatus (17) Electronic equipments and components (1) Transport equipment
boats and truck body building (3) Auto parts components and ancillaries and
garage equipments (36) Bicycle parts, tricycles and perambulators (41)
Miscellaneous transport equipment (4) Sports goods (7) Stationery items (13)
Others (21)
Small Scale Industries contribute 40% of gross industrial value & provide
foreign exchange. Small industries are second largest employer in India as it has
large capacity to absorb man power. Small Scale industries lead to balanced
regional balance.

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Introduction to PPR
Rasam is a soup dish especially prepared in South Indian cuisine. It is usually
very tangy in taste and quite fluid kind of soup. The sourness if the specialty of
the dish that is added with the help of the various ingredients included in a
specified proportion. Rasam recipe is popular all over the South India with
various regional ingredients. The basic recipe as well as variations is also quite
popular all over the world where South Indian population is existing. Though
Rasam is a south Indian soup, it is mainly popular in Tamil Nadu, whereas in
other places it is prepared with different names such as ‘saaru and ‘chaaru’.
Tomato rasam, lemon as well as parupu rasam are some of the popular recipes
around the world.
Rasam is essentially prepared by boiling method. All the ingredients
including tamarind, tomato puree, lentils and spices are boiled together to make
a very thin soup. The rasam powder can be prepared with dried spices and
stored in an air-tight jar for anytime use. The tomatoes can either be used in
puree form or in chopped pieces. The ginger is also added in chopped form
along with tamarind. The pineapple rasam is prepared with small pieces of fresh
tamarind. While making rasam with toor dal, the dal should be soaked in water
along with spices and coconut. The ingredients are then grinded to a coarse
paste before boiling.
Rasam is served as an appetizer in South Indian cuisine. Though it is different
from sambar, but it is often served with rice just like sambar. In traditional
South Indian meal, rasam follows the sambar course and followed by the meal
with curd rice.
Rasam is a quite healthy dish. The ingredients included in the dish are
beneficial due to the presence of vitamins and minerals. Lentils are rich in
proteins where lemon and tomatoes are rich in calcium and vitamin C.
Tamarind is a good laxative and also helpful in lowering the cholesterol.
Rich flavor and great taste of these products make these one of the most
favored selections of clients. These products are widely used by various
numbers of clients owing to its purity and safe usage. Manufacturer,
manufacture these products using top quality spices which are sourced from
certified vendors. Besides, these can be availed in various sized packaging as
per the requirements of clients.

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Spices from India are going places, with exports on course to top $3 billion
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by 2016-17.
Led by creative marketing strategies to ensure high brand recall, spice majors
are competing with their domestic counterparts through continuous innovations
in packaging, strength in quality and a strong distribution network.
Several local companies have also made their presence felt in the international
market, by following a dual branding strategy to cater to the Indian Diaspora in
the global market.
Indian brands bought out by international spice majors, such as MTR, have
also been straddling both strata.
Sanjay Sharma, CEO, MTR Foods, told Business Line, “MTR leads the spices
market in Karnataka and AP. We also export these products across many
countries, and our popular products are sambar powder, rasam powder and
puliogare, amongst others.”
The Indian spices market is pegged at 40,000 crores annually, of which the
branded segment makes up 15 per cent.
According to Technopak, the branded space is dominated by national brands
such as Catch, Everest, Ramdev, among others.

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Project at glance
Name of the unit Especiero Rasam powder
Tag line Every house wife’s choice
Name of promoters Reena John
Communication
address
‘Om’ 9 Geeta nagar,
Mavdi road,
Rajkot
Registration office
address
‘Om’ 9 Geeta nagar,
Mavdi road,
Rajkot
Telephone no. 0281-6533312
Fax no. 0281-3332259
Form of the
organization
Sole-proprietorship
Size of the unit Small Scale Industry
Brand name Especiero
Usage of product Adding taste to food
SSI registration no. Applied for same
Number of the
28
employees
Investment 1,19,48,500
Day off Wednesday
Sources of finance 25% borrowed loan – 29,87,125
75% owned capital - 89,61,375
Investment in
working capital
15,88,500
Investment in fixed
capital
1,03,60,000
Relation with banks ICICI and HDFC bank
Company’s logo

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Promoter’s Background
Name Reena John
Age 26
Address 12,Sai Flat,
Yagnik road,
Rajkot
Education qualification M.B.A (marketing )
Experience 2 years in GANDHI SPICES
Nature of responsibility Marketing department
Contribution to unit 30 %

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Justification of location
Justification of location is where you're planning to put your business. At the
same time you have to think about the surrounding of the place. If it is worth
starting up a business in that location.
Following are the factors affecting location
1. Availability of market :
Market plays an important role in the selection of location. Market
should be near to the industry so; the immediate sale of product is
possible. It also help in reduction of cost by reducing storing of finished
goods, avoid the cost of transportation etc.
2. Availability of labor :
Without manpower no one can start his or her industry. You have a
machine but no manpower; you cannot start your industry. So, labor
should be available at cheap rate.
3. Availability of transport :
It is required for assembling of raw material and distribution of finished
product. So, all type of transportation facility should be available.
4. Availability of power and water :
Power and water is pre-requirement of an industry. So, the facility of
power and water must be sufficient available.

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Organization chart
BOARD OF DIRECTORS
MANAGING EXECUTIVE
MARKETING
DEPARTMENT
PRODUCTION
DEPARTMENT
FINANCIAL
DEPARTMENT
PERSONNEL
DEPARTMENT
HEAD OF THE
DEPARTMENT
HEAD OF THE
DEPARTMENT
HEAD OF THE
DEPARTMENT
HEAD OF THE
DEPARTMENT
SALES EXECUTIVE
SUPERVISOR
AREA SALESMAN
EMPLOYEE
WORKERS AUDITORS
ACCOUNTANTS
EMPLOYEES

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Vision and mission
Vision
 To create an outstanding value for customers
 To render great service
 To develop as a great company
 To provide world class products to the customers
Mission
The mission of Especiero Rasam powder is to achieve the total customer
satisfaction by safely supplying the highest quality products & rendering the
effectual services possible at the earliest appropriate time.

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Basis and presumption
The profile is drawn in the basis of following presumption
Working hours per day 20 hrs
Working day 300 days
Total no. of working hours 6000hours
Working efficiency 80%
Labor charges As per wage rate
Rate of interest in fixed and working capital 16%
Operative period of the project 12 years
 Value of machinery and equipments is estimated on the basis of
prevailing cost of market.

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Implementation schedule
Project implementation will take a period of 10 months from the date of
approved of the scheme break up of activities with relative time for each activity
is show below
Preparation of project report 1 month
Registration of SSI 9 days
Financial arrangement 1 month
Purchase of raw-material 15 days
Installment of machinery 1 month
Electrician 1 week
Recruitment of staff 15 days
TOTAL 4 month and 25 days
 I can start my business with maximum time period of 4 to 5 months.

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Technical aspect

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Technical aspects
No. Particulars Pg no.
1. Plant layout
2. Raw material
3. Machinery and equipment
4. Suppliers of raw material and
machinery
5. Flow chart of production process
6. Production process
7. Production capacity
8. Pollution control and energy
conservation
9. Quality control and standard
10. Wastage management

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MACHINERY AND
PRODUCTION
ROOM
RAW MATERIAL
ROOM
GATE
R O A D
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Plant layout
GATE
POWER
STATION
G
A
R
D
E
N
G
A
R
D
E
N
N
O
F
F
I
C
E
Plant Layout is the physical arrangement of equipment and facilities within a
Plant. Optimizing the Layout of a Plant can improve productivity, safety and
quality of Products. Un-necessary efforts of materials handling can be avoided
when the Plant Layout is optimized.
• Plant layout techniques apply to the case where several physical means have to
be located in a certain area, either industrial processes or services.
• The basic objective is to ensure a smooth flow of work, material, people and
information.
• There are probably two levels at which layouts are required. In one, the
various departments have to be sited, and in other the items of equipment within
a department need to be located.

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There are 4 types of layout
1. Process
2. Product
3. Hybrid
4. Fixed position
Especiero Rasam Powder follows the process layout.

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Raw material
A material or substance used in the primary production or manufacturing of a
good. Raw materials are often natural resources such as oil, iron and wood.
Before being used in the manufacturing process raw materials often are altered
to be used in different processes. Raw materials are often referred to as
commodities, which are bought and sold on commodities exchanges around the
world.
Following are the material used by BHADRA RASAM POWDERS:
1. Dry chili powder
2. Cumin powder
3. Black pepper
4. Asafetida

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Machinery and equipments
Following are the machines and equipments used in BHADRA RASAM
POWDERS
Micro pulverizer
Multi weighing scale
Plastic bag sealing
Form fill seal machine
Hot air drier cabinet, electrically operated with
temperature control device

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Suppliers of raw material and machinery
 Address of Machines and Equipment Suppliers:
1. Rajesh shah , 101/a kothi compound
Dana pith -6
2. Nilesh Sharma ,36-b shanti colony
Dana pith-7
 Address of raw material Suppliers:
3. Manoj vikram
32-d, aji industry
4. Dhananjay Sharma
Tirth Street, aji industry
5. Dhanji Rathod
Laxmi Vadi, Gidc industry.

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Flow chart of production process
GRINDING
CLEANING
DRYING
finished goods
packaging
quality
testing

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Production process
Mechanical or chemical steps used to create an object, usually repeated to
create multiple units of the same item. Generally involves the use of raw
materials, machinery and manpower to create a product.
Process of Especiero Rasam powder is:
1. Cleaning and Removing stalks and seeds:
Chilly, asafetida , cumin seeds are purchased in bulk, from outside area, so it
needs cleaning. First of all, the chilly is to be cleaned and all the dust & dirt is to
be removed from the rest of the seeds.
2. Roasting:
Heat a griddle and cook each one ingredient separately for few minutes.
3. Grinding:
Grind them all together in an electric grinder, and then press through a sieve.
4. Packing:
This is the final operation of our product and that is packing. In this, the Rasam
Masala is packed either in some plastic.

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Production capacity
The total production capacity of the company is 48000units per annum. But on
the 1st year the production capacities at 75% will be use so as to go with the
market. Following will give the total idea of the production capacity of the unit.
Year Production No. of units
1 75% 20,000
2 85% 30,000
3 94% 40,000

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Pollution control and energy conservation
Modern technologies for water pollution control, water recycle & product
recovery air pollution control, environmental management system (EMS),
surface active agents and contamination of water, physical methods for the
treatment of organic acid bearing wastes, realities of waste cyanide treatment in
India, biological treatment of aqueous wastes, plastics and generated wastes,
alginate industry waste a source of biogas, acid charred waste as a resource
material for highly active adsorbent.
The project does not create any noise or water pollution. So for as our
pollution is concerned, the latest shuttle kilns and exhaust fan are settled.
Our unit has applied for certificate of (SPCB) state pollution control board, as
our unit having the all standards to get this certificate our unit will not find
problem in getting this certificate.

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Quality control and standards
Quality control, or QC for short, is a process by which entities review the
quality of all factors involved in production.
Quality control emphasizes testing of products to uncover defects and
reporting to management who make the decision to allow or deny product
release, whereas quality assurance attempts to improve and stabilize production
(and associated processes) to avoid, or at least minimize, issues which led to the
defect(s) in the first place.[citation needed] For contract work, particularly work
awarded by government agencies, quality control issues are among the top
reasons for not renewing a contract.
Black pepper IS:1778:1982
Chili powder IS:2445:1984
Cumin powder IS:2444:1980
Asafetida IS:1909:1961
Method of sampling and test of spices IS:1797:1973
Technique for spices and condiments IS:1877:1973
Method of test for spices IS:1797:1985

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Wastage management
The collection, transportation, and disposal of garbage, sewage, and other
waste products. Waste management encompasses management of all processes
and resources for proper handling of waste materials, from maintenance of
waste transport trucks and dumping facilities to compliance with health codes
and environmental regulations.
Wastages such bad spice seed are collected in distromed and then it’s dumped
out of the city.

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Market aspects

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Market aspect
1. Market potential
2. Market segmentation
3. Promotional efforts
4. Pricing policy
5. Distribution channel
6. Competitors

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Market potential
Domestic market for spice powders / masala powders (blend of various
spices) is growing at a fast rate. A major quantity of production of spice
powder originates either in the home scale or cottage level uni ts and is
distributed all over the country. It is estimated that there are about 1500
such units in the country. According to available information there are
about 20-25 large companies producing packed spices are also engaged in
exports. There are very few companies who have attained national market
for their products. In majority of the units 50% of the product mix is
contributed by coriander, chilly and turmeric powders.
India exports substantial quantity of spices and spice products. The
demand for any type of masala is directly related to the taste and
preferences of consumers in the country. However, users go in for various
types of masala. The preference to use masala is quite high because of its
inheritance advertisement as stated above. Even existing users have been
increasing by switching over to the masala.
At present there are about to 70 to 80 small or big units engaged in the
manufacturing of the masala with an average capacity of 20,000 to 30,000
p.m. No food is tasty without spice. We contribute more than 45% in
market.
This product is easily acceptable by market because now a day’s all the
customer want something spicy which add taste to their food.

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Market segmentation
Market segmentation is a marketing strategy that involves dividing a
broad target market into subsets of consumers, who have common needs and
priorities, and then designing and implementing strategies to target them.
Market segmentation strategies may be used to identify the target customers,
and provide supporting data for positioning to achieve a marketing plan
objective. Businesses may develop product differentiation strategies, or an
undifferentiated approach, involving specific products or product lines
depending on the specific demand and attributes of the target segment.
Main bases of segmentation are:
1. Geographical bases
2. Demographical bases
3. Psychographic bases
4. Behavioral bases
Especiero segment on the bases of geographical.

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Promotional efforts
Basically promotion is a attempt to influence and most specifically
promotion is an element in an organization. Marketing mix that serves to inform
persuade and remind the marketing of the product and the organization selling it
in hopes of influencing the recipient feeling, belief or behavior.
There are five forms of promotions…….
 Personal selling
 Advertisement
 Sales promotion
 Publicity and public relation
 Personal selling
ESPECIERO Rasam Masala has advertised their product in “GUJRAT
SAMACHAR” news paper.

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Pricing policy
Method adopted by a firm to set its selling price. It usually depends on the
firm's average costs, and on the customer's perceived value of the product in
comparison to his or her perceived value of the competing products. Different
pricing methods place varying degree of emphasis on selection, estimation, and
evaluation of costs, comparative analysis, and market situation. See also pricing
strategy.
There are 4 type of pricing
1. Mark-up pricing
2. Target return pricing
3. Value base pricing
4. Going rate pricing
Especiero have adopted going-rate pricing policy.

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Distribution channel
Product distribution (or place) is one of the four elements of the marketing
mix. Distribution is the process of making a product or service available for use
or consumption by a consumer or business user, using direct means, or using
indirect means with intermediaries.
manufacturer
distributor retailer

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Competitors
Competitor analysis is an essential component of corporate strategy. It is
argued that most firms do not conduct this type of analysis systematically
enough. Instead, many enterprises operate on what is called “informal
impressions, conjectures, and intuition gained through the tidbits of information
about competitors every manager continually receives.” As a result, traditional
environmental scanning places many firms at risk of dangerous competitive
blind spots due to a lack of robust competitor analysis.
Our competitors are
1. Eastern Rasam powder

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2. Nirapara Rasam powder
3. Aachi Rasam powder (Tamil nadu )

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FINANCIAL FACTORS

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Financial aspects
A. Total fixed assets
B. Total working capital
C. Total investment
D. Sources of capital
E. Loan repayment schedule
F. Depreciation on fixed assets
G. Production and sales of finished goods (in
units)
H. Stock of raw material
I. Total fixed cost
J. Total variable cost
K. Total cost
L. Breakeven point (in units)
M. Breakeven point (in rs)
N. Table of sales
O. Table of fixed cost
P. Table of variable cost
Q. Trading a/c (for 3 years)
R. Profit and loss a/c (for 3 year)
S. Balance sheet (for 3 year )
T. Cost sheet
U. Statement of profitability

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A. Total fixed assets
(A-1) Land and building
Particulars Amount rs.
1 Land 80,00,000
2 Land developing and fencing 2,00,000
3 Factory building 3,40,000
4 Office buildin0g 2,00,000
5 Storage house 80,000
6 Bore well 50,000
7 Water tank 20,000
8 Main gate 50,000
9 Watchman’s cabin 30,000
10 Lavatories 30,000
90,00,000
Total (A-1)
(A-2) Plant and machinery
Name Of Machinery Amount Rs.
Grinder machine 2,00,000
Cleaning 2,50,000
Form fill seal machine 1,50,000
Total (A-2) 6,00,000

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(A-3) Preliminary expenses
1 Consultancy fees 50,000
2 Project report preparation fees 40,000
3 Legal expenses of company formation 50,000
4 Interest during construction period 60,000
Total (a-2) 2,00,000
(A-4)Furniture
Particulars Quantity Rate per
unit
Rs.
Amount rs.
1 Ordinary tables 10 1,000 10,000
2 Computer tables 5 1,000 5,000
3 Chairs 50 1,00 5,000
4 Sofa sets 2 12,500 25,000
5 Fans 30 4,00 12,000
6 Lights 20 2,00 4,000
7 Doors 10 1,000 10,000
8 Windows 20 5,00 10,000
9 CCTV cameras 6 1,500 9,000
10 Air-conditioners 2 30,000 60,000
11 Refrigerators 2 10,000 20,000
12 Delivery van 3 1,00,000 3,00,000
13 computers 5 20,000 1,00,000
Total (A-4) 5,60,000

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Total fixed assets
1 Land and building 90,00,000
2 Plant and machinery 6,00,000
3 Preliminary expenses 2,00,000
4 Furniture 5,60,000
1,03,60,000
Total

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B. Total working capital
(B-1)Raw material (MONTHLY) :
No. Raw material Qty (kg) Rate per kg Amount
Spices 50 200 10,000
1,20,000
(B-2) Salary and wages
Particulars Number of
person
Amount per
month rs.
Total amount
rs.
1. General manager 2 20,000 40,000
2. Factory manager 3 12,000 36,000
3. Export manager 1 10,000 10,000
4. Supervisors 2 8,000 16,000
5. Clerk-cum cashier 5 5,000 25,000
6. Helpers 2 4,000 8,000
7. Foremen 1 5,000 5,000
8. Sweeper 2 3,000 6,000
9. Computer operator 5 3,000 15,000
10. Mechanic 3 2,000 6,000
11. Salesman 1 3,000 3,000
12. Storekeeper 1 2000 2000
13. Peon 2 2500 5000
14. Lab technician 1 2500 2500
Total (B-2) 1,79,500
21,54,000

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(B-3) Utilities
Particulars Amount per month rs.
1. Power 50,000
2. Fuel 20,000
3. Water 10,000
4. Oil and grease 10,000
70,000
Total (B-4) 8,40,000
(B-4) Other expenses
Particulars Amount per month
rs.
1. Postage and stationery 2,000
2. Telephone charges 3,000
3. Transport charges 50,000
4. Advertisement expenses 50,000
5. Insurance 20,000
6. Repairs and maintenance 5,000
7. Selling expenses 20,000
8. Other sundry expenses 10,000
1,60,000
Total (B-4) 19,20,000

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Total working capital per month
Particulars Amount per
month rs.
1. Raw materials 1,20,000
2. Salary and wages 1,79,500
3. Utilities 70,000
4. Other expenses 1,60,000
Total working capital per month 5,29,500
* 3 months
Total working capital for 3 months 15,88,500
C. Total investment
1. Total fixed assets 1,03,60,000
2. Total working capital 15,88,500
Total investments 1,19,48,500

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D. Sources of capital
total investment
owned capital borrowed capital
(75%) (25%)
89,61,375 29,87,125
1,19,48,500
1. Owned capital (75%) 89,61,375
2. Borrowed capital (25%) 29,87,125
Total capital 1,19,48,500

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E. Loan repayment schedule
Year Opening balance Interest @ 12% Closing balance
1. 1,19,48,500 14,33,820 1,07,53,650
2. 1,07,53,650 12,90,438 95,58,800
3. 95,58,800 11,47,056 83,63,950
4. 83,63,950 10,03,674 71,69,100
5. 71,69,100 8,60,292 59,74,250
6. 59,74,250 7,16,910 47,79,400
7. 47,79,400 5,73,528 35,84,550
8 35,84,550 4,30,146 23,89,700
9. 23,89,700 2,86,764 11,94,850
10. 11,94,850 1,43,382 ------
F. Depreciation on fixed assets
Name of the asset Rate of depreciation
1. Land and building 10%
2. Plant and machinery 15%
3. Furniture (excluding computers) 10%
4. Computers 60%
Table of depreciation for 3 years
YEAR-1
No Asset Opening
balance rs.
Depreciation
rs.
Closing
balance rs.
1. Land and building 90,00,000 9,00,000 81,00,000
2. Plant and machinery 6,00,000 90,000 51,00,000
3. Furniture 4,60,000 46,000 4,14,000

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4. computers 1,00,000 60,000 40,000
YEAR – 2
No Asset Opening
balance rs.
Depreciation
rs.
Closing
balance rs.
2. Plant and machinery 51,00,000 7,65,000 43,35,000
3. Furniture 4,14,000 41,400 3,72,600
4. computers 40,000 24,000 16,000
YEAR – 3
No Asset Opening
balance rs.
Depreciation
rs.
Closing
balance rs.
2. Plant and machinery 43,35,000 6,50,250 36,84,750
3. Furniture 3,72,600 37,260 3,35,340
4. Computers 16,000 9600 6400
G. Estimated production and sales (IN UNITS)
Year Opening
stock
Production Sales Closing stock
1. ----- 20,000 18,000 2,000
2. 2,000 30,000 28,800 3,200
3. 3,200 40,000 38,880 4,320
H. Stock of Raw Material (IN UNITS)
Particulars Year 1 Year 2 Year 3
Opening stock ----- 5,000 10,000
Add: purchases 25,000 35,000 45,000
Less: consumption 25,000 30,000 40,000
= closing stock 5,000 10,000 15,000

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I. Total Fixed Expenses
No. Particulars Amount rs.
1. Salary and wages (60%) 12,92,400
2. Utilities (50%) 4,20,000
3. Other expenses (70%) 13,44,000
Total 30,56,400
1. Fixed cost per unit = Total Fixed Cost
Production at 100% capacity
= 30,56,000
40,000
= 76.4 per unit

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J. Total variable cost
No. Particulars Amount rs.
1. Raw materials (100%) 1,20,000
2. Salary and wages (40%) 8,61,600
3. Utilities (50%) 4,20,000
4. Other expenses (30%) 5,76,000
Total 19,77,600
2. Variable cost per unit = total variable cost
= 19, 77,600
40,000
= 49.44
K. Total cost
Total cost = total fixed cost + total variable cost
= 30,56,400 + 19,77,600
= 50,34,000
Total cost per unit = total cost

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= 50,34,000
40,000
= 125.85
L. Break-even point ( in units )
BEP (in units) = total fixed expenses
S – V
= 30,56,400
40 – 49.44
= 30,56,400
9.44
= 3,23,771
M. Break-even points ( in rs. )
BEP (in rs.) = BEP in units * selling price per unit rs.
= 3,23,771*40
= 1,29,58,840

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No. Particulars Year 1
(50%)
1. Salary and wages
6,46,200 9,69,300 12,92,400
2. Utilities (50%) 2,10,000 3,15,000 4,20,000
3. Other expenses (70%) 6,72,000 10,08,000 13,44,000
Total 15,28,200 22,92,300 30,56,400
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N. Table of sales
Year Production
capacity
Sales(in units) Selling
units
Total
Rs.
1. 50% 18,000 300 54,00,000
2. 75% 28,800 300 86,40,000
3. 100% 38,880 300 1,16,64,000
O. Table of fixed expenses
Year 2
(75%)
P. Table of variable expenses
(60%)
No. Particular Year 1
(50%)
Year 2
(75%)
Year 3
(100%)
1. Raw material (100%) 60,000 90,000 1,20,000
2. Salary – wages (40%) 4,30,800 6,46,200 8,61,600
3. Utilities (50%) 2,10,000 3,15,000 4,20,000
4. Other expenses (30%) 2,88,000 4,32,000 5,76,000
Total 9,88,000 14,83,200 19,77,600

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Q. FINAL A/CS (FOR 3 YEAR )
Year - 1
Trading a/c of 1st year
Dr. Cr.
Particular Amt (rs) Particular Amt (rs)
opening stock Sales
Raw material -- Cash (40%) 2,88,000
Finished goods -- Credit (60%) 4,32,000 54,00,000
Purchase of raw
60,000
material
Salary /wages 4,30,800 Closing stock
Utilities 2,10,000 Raw material 10,00,000
Finished goods8,00,000 18,00,000
Gross profit 64,99,200
Total 72,00,000 Total 72,00,000

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Profit and loss a/c of 1st year
Dr Cr
Particular Amt (Rs.) Particular Amt (rs.)
Salary/wages 6,46,200 Gross profit 64,99,200
Utilities 2,10,000
Other expenses
t- o – 6,72,000
t- p – 2,88,000 9,60,000
Depreciation
Land and building 9,00,000
Plant and machinery 90,000
Furniture 46,000
Computer 60,000
Provision for tax 4,78,649
Interest on bank loan 14,33,820
Interest in capital 5,37,683
Preliminary expense 20,000
Net profit 11,16,848
Total 64,99,200 Total 64,99,200

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Balance sheet of 1st year
Liabilities Amt (rs.) Assets Amt (rs.)
Owned capital 89,61,375 Land and building
Add: i.o.c 5,37,683 Opening balance 90,00,000
Add: net profit 11,16,848 Less: depri 9.00,000 81,00,000
= closing stock
1,06,15,906
Plant and machinery
12% bank loan 1,19,48,500 Opening bal 6,00,000
o/s interest on loan 1,07,53,650 Less: depri 90,000 51,00,000
Creditors 60,000
b/p - 36,000 24,000 Furniture
Provision for tax 4,78,649 Opening bal 4,60,000
Bank o/d 52,63,457 Less: depri 46,000 4,14,000
Computer
Opening bal 1,00,000
Less: depri 60,000 40,000
Debtors 2,59,200
b/r - 51,840 2,07,360
Preliminary exp 2,00,000
Less: W/O 20,000 1,80,000
Total
3,38,20,705
Total
3,38,20,705

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Year -2
Trading a/c of 2nd year
Dr. Cr.
opening stock Sales
Raw material
Cash (40%) 34,56,000
10,00,000
Finished goods
8,00,000
18,00,000 Credit (60%) 51,84,000 86,40,000
Purchase of raw
material
90,000
Finished goods 12,00,000 32,00,000
Gross profit 89,88,800
Total 1,18,40,000 Total
1,18,40,000

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Profit and loss a/c for 2nd year
Dr. Cr.
Salary/wages 9,69,300 Gross profit 89,88,800
Utilities 3,15,000
Other expenses
T -o 10,08,000
T -p 4,32,000 14,40,000
Depreciation
Plant and
7,65,000
machinery
Furniture 41,400
Computer 24,000
Interest on bank
loan
12,90,438
Interest on capital 5,37,683
Preliminary
20,000
expenses
Total 89,88,800 Total 89,88,800

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Balance sheet 2nd year
Owned capital 1,06,15,906 Land and building
Add: net profit 89,88,800 Less: depri 8,10,000 72,90,000
= closing stock
2,01,42,389
Plant and machinery
12% bank loan 95,58,800 Opening bal 51,00,000
o/s interest on loan 83,63,950 Less: depri 7,65,000 4 3,35,000
Creditors 90,000
b/p -54,000 36,000 Furniture
Less: depri 41,400 3,72,600
Computer
Opening bal 40,000
Less: depri 24,000 16,000
Debtors 31,10,400
b/r - 6,22,080 24,88,320
Less: W/O 20,000 1,80,000
Cash in hand 2,38,66,723
Total
3,85,48,643
Total 1,46,81,920

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Year -3
Trading a/c for 3rd year
Dr. cr.
opening stock Sales
Raw material 20,00,000 Cash (40%) 46,65,600
Finished goods12,00,000 32,00,000 Credit (60%) 69,98,400 1,16,64,000
Purchase of raw material 1,20,000
Finished goods 16,00,000 61,00,000
Gross profit 1,31,63,000
Total 1,77,64,000 Total 1,77,64,000

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Profit and loss a/c for 3rd year
Dr. cr.
Salary/wages 12,92,400 Gross profit 1,31,63,000
Utilities 4,20,000
Other expenses
table – o 13,44,000
Table – p 5,76,000
Depreciation
Plant and
6,50,250
machinery
Furniture 37,260
Computer 9600
Interest on bank
11,47,056
loan
Interest on capital 5,37,683
Preliminary
20,000
expenses
Total 1,31,63,000 Total 1,31,63,000

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Balance sheet for 3rd year
Owned capital 2,01,42,389 Land and building
Add: net profit 44,79,826 Less: depri 7,29,000 65,61,000
= closing stock 2,51,59,898
Plant and machinery
12% bank loan 95,58,800 Opening bal 43,35,000
o/s interest on loan 83,63,950 Less: depri 6,50,250 36,84,750
Creditors 72,000
b/p - 14,400 57,600 Furniture
Less: depri 37,260 3,35,340
Computer
Opening bal 16,000
Less: depri 9,600 7,000
Debtors 41,69,040
b/r - 8,33,808 33,35,232
Less: W/O - 20,000 1,80,000
Cash in hand 3,09,56,851
Total 4,50,60,173 Total 4,50,60,173

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Cost sheet
Particular Year-1 Year-2 Year-3
Opening stock of raw
material
--- 10,00,000 20,00,000
Add: purchase of raw
material
60,000 90,000 1,20,000
= 60,000 10,90,000 21,20,000
Less: closing stock 18,00,000 32,00,000 61,00,000
= consumption of raw
-17,40,000 -21,10,000 - 39,80,000
material
Add: salary and wages 4,30,800 6,46,200 12,92,400
Add: utilities 2,10,000 3,15,000 4,20,000
= prime cost -10,99,200 -11,48,800 -22,67,600
Add: utilities 2,10,000 3,15,000 4,20,000
= factory cost - 8,89,200 -8,33,800 -18,47,600
Add: salary and wages 6,46,200 9,69,300 12,92,400
Add: other expenses 6,72,000 10,08,000 13,44,000
= office cost 4,29,000 11,43,500 7,88,800
Opening stock of finished
--- 8,00,000 12,00,000
goods
Less: closing stock of
finished goods
8,00,000 12,00,000 16,00,000
= cost of product - 3,71,000 31,43,500 35,88,800
Add: other expenses 2,88,000 4,32,000 5,76,000
= total cost 83,000 35,75,500 41,64,800
Add: profit 53,17,000 50,64,500 89,98,200
= sales 54,00,000 86,40,000 1,31,63,000

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Statement of profitability
Particular Year 1 Year 2 Year 3
Sales 54,00,000 86,40,000 1,31,63,000
-Variable expenses 9,88,000 14,83,200 19,77,600
Contribution 44,12,000 71,56,800 1,11,85,400
-Fixed Expenses 15,28,200 22,92,300 30,56,400
EBDIT 29,83,800 48,64,500 81,29,000
-Depreciation 9,00,000 8,10,000 7,29,000
EBIT 20,83,800 40,54,500 74,00,000
-int. on loan and i.o.c 19,71,503 18,28,121 16,84,739
EBT 1,12,297 22,26,379 57,15,261
Taxes 30% of EBT 33,689 6,67,914 17,14,578
Profit after tax 78,608 15,58,464 40,00,683

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Risk Factors

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1. Changes in government policies may affect the profitability of the
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firm, for e.g. Government gives subsidies to the farmer etc.
2. The intensity of competition may increase which may not be
favorable for this business.
3. My industry depends on agricultural product, and agricultural product
depends on rain, rain is not certain, indirectly demand of my product is
not certain.
4. Price of my product is not fixed of all time, so demand is also
uncertain.

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SWOT Analysis

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S – STRENGTH: Harmonious and cordial relationship among employees
: Favorable premises for transportation
W – Weakness: Storage of masala
O – Opportunities: now-a-days pizza market is very growing so it is good for
company to earn profit and good image in the market
T- Threat: future increase in cost of raw material

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Future plans

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Today’s market is full of competition, in today business, if there is no change
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in product, we will not survive in the market for longtime.
1. So my future plan is to export more and more number of packets.
2. Now at the initial stage my industries are not able to produce in bulk, so
in future I will introduce new machinery to my company for bulk
production.

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Conclusion

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As such we as a citizen of India having some responsibility to uplift the
economic level and also make the life more and more compatible.
In view of above all information which can have the best way to get
comfort in the life of all household work. In earlier time, Rasam Masala is being
prepared at home and it is consider as time consuming & wastage of energy.
But now with the introducing the readymade Rasam Masala now it is easily to
bake the Rasam Masala whenever you want to eat.
Thus, we are feeling great pleasure to make the product in front of you
and so expecting move response from market& trying to satisfying the
prospecting customer.
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References

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No. book name / website author name edition
1. www.businessdictionary.com
2. www.wikipedia.com
3. Marketing Management DR. R.B.Rudani Revised Edition-2012

Especiero Rasam Powder Project Report

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