PRODUCT PROJECT REPORT ON

(chilly powder)
PREPARED BY
BANSI M. PALAN

CLASS
T.Y.B.B.A.

ACADEMIC YEAR
2005-2006

ROLL NO.
20

SEAT NO. COLLEGE

CHRIST COLLEGE, RAJKOT

SUBMITTED TO
SAURASHTRA UNIVERSITY, RAJKOT

GUIDED BY
Dr. SWATI DOSHI

Declaration
I, the undersigned Bansi M. Palan student of T.Y.B.B.A., hereby declare that the project work presented in this report is my own work & has been carried out under supervision of Dr. Swati Doshi. This project has not been previously submitted to any other university for my examination.

Date: Place:-Rajkot Bansi M. Palan

Acknowledgement
I am heartily thankful to everyone who have helped me. I am also thankful to Mr. Abhijit Vala for his guidance. Ltd. I am thankful to my parents. I am thankful to all managers and staff members of Balaji Wafers Pvt.

Date:Place:- Rajkot Bansi M. Palan

Preface
Practice makes man perfect, action makes man practical.
Above said proverb holds the importance of practice & action. The field of management provides practical as well as theoretical knowledge simultaneously. As a developing country, in Indian economy, contribution of small scale industries, as it is supportive to big industries & makes economy to reach heights of prosperity. The subject Entrepreneurship & Management of Small Business is included in T.Y.B.B.A. with a view to develop & implement the knowledge in action. It is essential for BBA students, who wants to become future entrepreneurs, to get practice from the inception.

Index
Particulars
Introduction Project at a Glance Partners Background Justification of Location Product Details Market Potential Raw Materials Machines Manufacturing Process Production Capacity Schedule Staff & Labour Details Financial Details Cost of Production Total Working Capital Requirement Total Project Fund Sources of Finance Depreciation Annual Cost of Production Sales Forecast Cost Per Unit BEP Analysis Cost of Capital Return on Investment Profitability & Profitability Analysis Risk Factors Name & Address of Raw Material Supplier Name & address of Machine Supplier Particulars of Raw Materials Consumed Particulars of Finished Goods Schedule for Fixed Assets Disclosure of Significant Accounting Policies Projected Operating Statement for Three Years Projected Trading A/C For First Year Projected P&L A/C For First Year Projected P&L Appropriation A/C For First Year

Page No.

Projected Capital A/C For First Year Projected Balance Sheet For First Year Projected Cost Sheet For First Year Projected Trading A/C For Second Year Projected P&L A/C For Second Year Projected P&L Appropriation A/C For Second Year Projected Capital A/C For Second Year Projected Balance Sheet For Second Year Projected Cost Sheet For Second Year Projected Trading A/C For Third Year Projected P&L A/C For Third Year Projected P&L Appropriation A/C For Third Year Projected Capital A/C For Third Year Projected Balance Sheet For Third Year Projected Cost Sheet For Third Year Future Plans Conclusion

Introduction
Small Scale industry is one of the greatest tool to develop country. Keeping this in mind, government is also active to develop small scale industry in the country so that big companies can also develop. And as increasing number of companies provides employment to many people through which standard of living also increases.

Project At A Glance
1 2 3 Name of the unit Form of the unit Name of Partners : Shri Ltd. : Partnership Firm : (i) Palan Bansi M. (ii) 4 5 6 7 8 9 Name of Product Size of Unit SSI Registration No. Cost of Project Means of Finance Implementation Schedule (i) (ii) (iii) (iv) Preparation Report Selection of site & : 1 Month : 2 Months : 15 Days : 8 Months Construction of Building SSI Registration Availability of finance, Selection of Machines, Procurement of Machines (v) Recruitment of Labour & Commencing Production TOTAL of : : : : : Chandarana Yash K. Shri Chilly Powder Small Scale Applied For. Rs.3837000 Ownership Capital

Project : 1 Month : 3 Months

Partners Background
Partner 1
Name Address : Palan Bansi M. : Kamadgiri Apartment, 5th Floor, 501, Near K. K. V. Hall, Kalawad Road, Type of unit Products SSI registration Subsidy no. Rajkot 360 005. : 20 years : BBA with Advanced Management. : Management of

Marketing &

Marketing

Personnel Department. registration : 50%

Partner 2
Name Address : Chandarana Yask K. : Mile Stone, Opposite to Bank of Karnatak, Kalawad Road, Age Qualification Role in Unit Financial Contribution Rajkot. : 26 years : MBA with Finance Management. : Management of Finance & Production Department. : 50%

Justification Of Location
Location reveals the area where the plant will operate to manufacture proposed goods & articles. Every entrepreneur, before starting unit must give due attention to the suitable location of business. One should locate the unit at the place where infrastructural & other facilities are available. We are going to launch our unit at Shapar. The following facilities are available there cheaply & adequately.

Raw Material: The basic component for manufacturing firm is raw material. As in our case raw material comes from outside the city that is Gondal. So, it is convenient to locate the firm at Shapar so that raw material is available cheaply & easily.

Transportation: Here transportation facilities are available cheaply & easily so that there is convenience in getting raw material from outside to the production place & also from production place to the other area to sell.

Labour: The area in which our firm will be located is an industrial area, so that labour is adequately available.

Water & Power Supply: There no such problem of power cuts or shortage of water in this place.

Product Details
Product: The product that our firm is going to manufacture is, Chilly Powder.

Its Use: Chilly Powder is used as one of the main spices in most of the food items. It is used as a flavouring stuff for making the food item spicy.

Brand: The brand name of our product is Shri.

Market Potential
In earlier years people used to have simple and pure food, but now is the era of fast food. Peoples Food habits have totally changed. People love to have delicious Punjabi Dish, Chinese, Thai, Mexican & Italian Food. People are more attracted towards hot & spicy food items. Chilly Powder is the main ingredient to make the dish hot & spicy. Even in our routine food preparations, chilly powder is used as one of the spices. Thus, right from simple food items to variety of food items chilly powder is used as the main spice. Moreover, chilly powder is used indirectly also, like, people consume tomato ketchup which has chilly powder in it. In various other preparations also it is used indirectly. Thus, when people use these items in any dish the use of chilly powder is indirect. Thus, chilly powder is widely used in food & food products. Moreover, earlier, people used to make chilly powder on their own. People used to buy dry red chilies and grind them on their own or in any flour mill. But now is the age of readymade. The lifestyle of people has changed. Everyone is busy in one or the other way so they do not have much time to do all these work ultimately they prefer readymade items. So also this product has great potential. Through our pure & best quality product at low price we will be able to sell it in market & also we will be able to create demand for our product.

Raw Materials
1. 2. Dry Red Chillies. Edible Oil.

Machines
1. 2. 3. 4. 5. 6. Pulverizer Machine Electronic Weighing Machine Filling Machine Plastic Bag Sealing Machine Electric HP Motors Mixing Tank with Agitator

Manufacturing Process
The word Process leads to series of steps. Product is not outcome of only one act but it has to pass through various stages to become final outcome. Following are the steps included in manufacturing :

(1)

Cleaning: Chilly is 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.

(2)

Removing stalks and seeds: Before crushing the chilly into powder, stalks and also the seeds from inside are to be removed.

(3)

Pulverization: Next step is of Pulverization. Chillies are smashed into fine powder through special machines called Pulverizer.

(4)

Mixing Oil to it: Finally, the chilly powder has to be mixed with oil so that it does not spoil for longer time.

Flow Chart
Chilly Powder Manufacturing Process

Cleaning

Removing stalks and seeds

Pulverizing

Mixing Oil

Production Capacity Schedule

(1) Installed Capacity: 2 Pulverizers each having installed capacity of 12.5 kg. Per hour. Total 25 kg. Per hour. Yearly Installed capacity is 25 2400 hrs. = 60000 kg.

(2)

Utilized Capacity: 60% i.e. 15 kg. Per hour. Yearly Utilized capacity is 15 2400 hrs. = 36000 kg.

(3)

No. of Shifts Per Day: 1 Shift.

(4)

No. of Working Hours Per Shift: 8 Hours.

(5)

No. of Working Days in a Month: 25 Days.

(6)

No. of Working Days in a Year: 300 Days.

(7)

No. of Working Hours in a Year: 2400 Hours (8 hrs. 300 days)

(8)

Input / Output Ratio: 10 : 9

Staff And Labour Details

Sr. No.
1 2 3 4 5 6 7

Particulars
Supervisor Accountant Computer Operator & Clerk Unskilled Worker Salesman Peon Watchman TOTAL

No. of Person
1 1 1 4 3 1 1 12

Rate
6000 4000 5000 2500 3000 2000 2000

Amt. (per Month)

6000 4000 5000 10000 9000 2000 2000 38000

Amt. (p.a.)
72000 48000 60000 120000 108000 24000 24000 456000

Financial Details
Sr. No. (1) a. b. c. Particulars Fixed Assets Land Building Plant & Machinery (i) Pulverizer (ii) Electronic Machine (iii) Filling Machine (iv) Sealing Machine (v) HP Motors (vi) Mixing (2) d. e. f. g. (3) (4) Tank with Agitators Other Assets Furniture Computer Delivery Van Other Equipments Electrification & Installation Charges Preliminary & Pre1 1 30000 200000 70000 150000 30000 200000 70000 90000 1 35000 35000 Weighing 1 1 1 2 10000 36000 10000 12000 10000 36000 10000 24000 2 35000 70000 700 sq. mt. 600 sq. mt. 600 400 420000 240000 Rate Total Cost (Rs.)

operating Expenses

80000

Cost Of Production
(a) Raw Material Requirement: No. Particulars Rate per kg. Requirement per Day Requirement per Month Requirement per Year

Quantity Amount Quantity 1 2 Chilly Edible Oil 40 30 (k.g) 133 6 5320 180

Amount Quantity Amount (k.g) 40000 1800 1600000 54000

(k.g) 3333 133320 150 4500

(b) Staff & Labour: Sr. No.

1 2 3 4 5 6 7

Particulars
Supervisor Accountant Computer Operator Cum Clerk Unskilled Worker Salesman Peon Watchman TOTAL

No. of Person
1 1 1 4 3 1 1 12

Rate
6000 4000 5000 2500 3000 2000 2000

Amt. (per Month)

6000 4000 5000 10000 9000 2000 2000 38000

Amt. (p.a.)
72000 48000 60000 120000 108000 24000 24000 456000

(c) Other Expenses & Utilities: -

Sr. No. 1 2 3 4 5 6 7 8 9 10 11

Particulars Selling Expenses Repair & Maintenance Electricity Water Charges Postage & Stationary Legal Fees Audit Fees Miscellaneous Expenses Insurance Preliminary Expenses W/F Electrification & Installation Charges W/F TOTAL

Amt. (Per Annum) 60000 24000 180000 24000 18000 36000 18000 18000 24000 12000 18000 432000

Total Working Capital Requirement

Sr. No. (a) (b) (c)

Particulars Raw Material Staff & Labour Other Expenses & Utilities TOTAL

Monthly 137833.33 38000.00 36000.00 211833.33

Yearly 1654000 456000 432000 2542000

Total Project Fund

Sr. No. (a) (b)

Particulars Total Fixed Capital Total Working Capital TOTAL

Amount 1295000 2542000 3837000

Sources Of Finance

Sr. No. 1

Particulars Ownership capital by Bansi Yash TOTAL

Amount 1918500 1918500 3837000

Depreciation

Sr. No. (a) (b) (c) (d) (e) (f)

Particulars Building Furniture & Fixture Plant & Machinery Computers Delivery Van Other Equipments

Rate of Depreciation 10% 15% 25% 40% 15% 15% TOTAL DEPRECIATION

Amount 24000 22500 46250 12000 30000 10500 145250

Annual Cost Of Production

Sr. No. (a) (b) (c) (d)

Particulars Raw Material Total Recurring Expenses Depreciation Interest on Capital TOTAL

Amount 1654000 888000 145250 306960 2994210

Sales Forecast

Year 1 2 3 4 5

Units (in kg.) (p. a.) 37800 44100 50400 56700 63000

Selling Price 85 90 100 110 120

Amount (Rs.) 3213000 3969000 5040000 6237000 7560000

Cost Per Unit

Total Cost Per Unit: = = =
Annual Cost of Production Annual Production 2994210 37800

79.21

Fixed Cost Per Unit: = = =

Total Fixed Cost Total Annual Production 1033250 37800

27.33

Variable Cost Per Unit: = = =

Total Variable Cost Annual Production 1654000 37800

43.76

Break Even Point Analysis

(a)
Selling Price - Variable Cost Contribution 85.00 43.76 41.24 (per unit) (per unit) (per unit)

(b)

BEP in Units: BEP = = =

Fixed Cost Contribution Per Unit

1033250 41.24

25054.56

(c)

BEP in Rs.: BEP = = =

Fixed Cost P/V Ratio 1033250 48.25

100

100

2141450.78 Rs.

(d)

P/V Ratio: P/V Ratio = = =

Contribution Sales 1559000 3213000

100

100

48.25%

(e)

BEP in Percentage: (At Utilized Capacity)

BEP = = =

Fixed Cost Utilized Capacity Contribution 1033250 60 1559000

39.77%

Return On Investment

ROI

= = =

EBIT Cost of Project

100

525750 3837000

100

13.70%

Profitability & Its Analysis

Sales - Variable Cost Contribution - Fixed Cost EBIT - Interest EBT - Tax ( 35%) EAT

3213000 1654000 1559000 1033250 525750 306960 218790 76577 142213

(1) Gross Profit Ratio: Gross Profit Ratio = = =

Gross Profit Sales 1211000 3213000

100

100

37.69%

(2) Net Profit Ratio: Net Profit Ratio = = =

Net Profit Sales 218790 3213000

100

100

6.81%

(3) Fixed Assets Turnover Ratio: FAT Ratio = = =

Cost of Goods Sold Fixed Asset 2994210 1295000

2.31%

Cost Of Capital
Capital 2161500 2161500 4323000 Rate 8% 8% 16% Interest 172920 172920 345840

Average Cost of Capital: = = =

Total Interest Total Capital

100

345840 4323000

100

8%

Average Cost of Capital: = = =

Total Rate of Interest 2 16 2

8%

Risk Factors
1. Changes in Government policies for this type of industries may affect the organization positively or negatively accordingly, as profit may increase or decrease due to Governments intervention.

2.

There is always risk of competition from existing & potential units. But to avoid this risk, cost reduction through ideal utilization of resources, use of good quality of raw material etc. will be helpful.

Names & Address of Raw Material Supplier

(1)

Patel Mohanlal Ambabhai Marcha Pith, Marketing Yard, Gondal.

(2)

Raiyani Bros. Marcha Pith, Marketing Yard, Gondal.

Names & Address Of Machine Supplier

(1)

Micron Machineries Corporation Junagadh.

(2)

Compu Weigh Rajkot.

(3)

Kavery Enterprise Rajkot.

(4)

Suvidha Electronics Gondal.

Particulars Of Raw Material Consumed

Particulars Opening Bal. + Purchase Chilly Oil TOTAL - Closing Stock Chilly Raw Material Consumed Chilly Oil TOTAL

Year 1 Qty. (in Amt. kg) 42000 1800 43800 2000 1680000 54000 1734000 80000

Year 2 Qty. (in Amt. kg) 2000 80000 46667 2100 48767 2000 2053348 69300 2122648 88000

Year 3 Qty. (in Amt. kg) 2000 88000 53333 2400 55733 2000 2559984 86400 2646384 96000

40000 1800 41800

1600000 54000 1654000

46667 2100 48767

2045348 69300 2114648

53333 2400 55733

2551984 86400 2638384

Particulars Of Finished Goods

Particulars Opening Bal. + Goods Manu. - Sales Closing stock

Year 1 Qty. Cost 37800 3070787 37800 3070787 -

Year 2 Qty. Cost 44100 3689018 44100 3689018 -

Year 3 Qty. Cost 50400 4463927 50400 4463927 -

Schedule For Fixed Assets

No. Particulars Gross Block Opening Total balance. Depreciation Total During
Accumulated

Net Total Block

The year

1 2 3 4 5 6 7

Land 420000 420000 Building 240000 240000 Plant & 185000 185000 Machinery Computer 30000 30000 Furniture 150000 150000 Delivery 200000 200000 Van Other 70000 70000 Equipment TOTAL 1295000 1295000

420000 24000 24000 216000 46250 46250 138750 12000 12000 18000 22500 22500 127500 30000 30000 170000 10500 10500 59500

145250 145250 1149750

Disclosure Of Significant Accounting Policies

Method of Accounting: Double Entry System

Method of Depreciation: Straight Line Method

Deferred Revenue Expenses: Preliminary Expenses are written off at 15% every year. Electrification & Installation charges are written off at 20% every year.

Projected Trading A/C. Of Shri Ltd. For 1st Year

Particulars To Opening Stock To Purchase To Repair & Maintenance To Water Charges To Electricity To Wages to Unskilled Worker To Gross Profit (Transfer to P & L A/c.) 3293000 3293000 Particulars - By Sales 1734000 By Closing Stock 24000 24000 180000 120000 1211000 Rs. Rs. 3213000 80000

Projected Profit & Loss a/c. Of Shri Ltd. For 1st Year
Particulars To Salary to Supervisor Accountant Computer Operator cum Clerk Salesman Peon Watchman To Pre. Exp. W/F To Ele. & Ins. Exp. W/F To Depreciation Building 24000 P&M 46250 Computer 12000 Furniture 22500 Delivery Van 30000 Other Equip. 10500 To Selling Exp. To Postage & Stationary To Tax paid To Legal Fees To Audit Fees To Mis. Exp. To Insurance To Net Profit (Trans. To P & L App.) Rs. Particulars By Gross Profit Rs. 1211000 72000 48000 (Trans. From Trading A/c.) 60000 108000 24000 24000 12000 18000

145250 60000 18000 76577 36000 18000 18000 24000 449173 1211000 1211000

Projected Profit & Loss Appropriation A/C. Of Shri Ltd. For 1st Year
Particulars To interest on Capital Bansi 153480 Yash 153480 To Net Divisible Profit Bansi 71106.5 Yash 71106.5 Rs. Particulars Rs. By Net Profit 449173 (Trans. From P & L A/c.)

306960

142213 449173 449173

Projected Balance Sheet Of Shri Ltd. For 1st Year

Capital Liability To Capital A/C Bansi 1989606.5 Yash 1989606.5 Property Asset Land Building 240000 - Dep. 24000 3979213 P & M 185000 - Dep. 46250 Computer 30000 - Dep. 12000 Furniture 150000 - Dep. 22500 Delivery van 200000 - Dep. 30000 Other Equip. 70000 -Dep. 10500 By Pre. Exp. 80000 - Dep. 12000 By Ele. & Ins. 90000 - Dep. 18000 By Closing Stock By Debtors By Bank balance By Cash balance Rs. Rs. 420000 216000 138750 18000 127500 170000 59500 68000 72000 80000 963900 1151894 493669

3979213

3979213

Projected Cost Sheet Of Shri Ltd. For 1st Year

Sr. N o . 1

Particulars

Rs.

Rs.

2 3

Direct Material Cost Opening Stock + Purchase of Raw Material - Closing Stock (A) Cost of Raw Material Consumed Other Direct Expenses Dep. on Equipments, P & M etc. (B) PRIME COST Factory Overhead Water Charges Electricity Charges Repair & Maintenance of Machines Insurance of Factory Electrification of Inst. Exp. Salary to Factory Supervisor Preliminary Expenses Salary to Watchman Wages to Unskilled Worker (C) FACTORY COST Office & Administrative Overhead Salary to Accountant Salary to Computer Operator Salary to Peon Postage & Stationary Legal Fees Audit Fees Interest on Capital Miscellaneous Expenses (D) COST OF PRODUCTION GOODS MANUFACTURED Selling & Distribution Overhead Selling Expenses Taxes paid Salary to Salesman Dep. on Delivery Van TOTAL COST PROFIT SALES

1734000 80000 1654000 115250 24000 180000 24000 24000 18000 72000 12000 24000 120000 48000 60000 24000 18000 36000 18000 306960 18000 OF 115250 1769250

498000 2267250

528960 2796210

60000 76577 108000 30000

274577 3070787 142213 3213000

Projected Trading A/C. Of Shri Ltd. For 2nd Year

Particulars To Opening Stock To Purchase To Repair & Maintenance To Wages to Unskilled Labour To Water Charges To Electricity To Gross Profit (Trans. to P & L A/c.) Rs. Particulars 80000 By Sales 2122648 By Closing Stock 26400 132000 26400 198000 1471552 4057000 4057000 Rs. 3969000 88000

Projected Profit & Loss A/C. Of Shri Ltd. For 2nd Year.
Particulars
To Salary to Supervisor Watchman Accountant Computer Operator cum Clerk Salesman Peon To Depreciation Building 24000 P&M 46250 Computer 12000 Furniture 22500 Delivery Van 30000 Other Equip. 10500 To Pre. Exp. W/F To Ele. & Ins. Charges W/F To Taxes paid To Selling Expenses To Postage & Stationary To Audit Fees To Mis. Exp. To Insurance To Legal Fees To Net Profit (Trans. To P & L App.)

Rs.

Particulars

Rs.

79200 By Gross Profit 1471552 26400 (Trans. From Trading A/c.) 52800 66000 118800 26400

145250 12000 18000 150760 66000 19800 19800 19800 24000 39600 586942 1471552 1471552

Projected Profit & Loss Appropriation A/C. Of Shri Ltd. For 2nd Year
Particulars
To interest on Capital Bansi 153480 Yash 153480 306960

Rs.

Particulars

Rs.

By Net Profit 586942 (Trans. From P & L A/c.)

To Net Divisible Profit Bansi 139991 Yash 139991

279982

586942

586942

Projected Balance Sheet Of Shri Ltd. For 2nd Year.

Capital Liability To Capital A/C Bansi 2129597.5 Yash 2129597.5 - Dep. 46250 Computer 18000 - Dep. 12000 Furniture 127500 - Dep. 22500 Delivery van 170000 - Dep. 30000 Other Eqip. 59500 - Dep. 10500 By Pre. Exp. 68000 - Dep. 12000 By Ele. & Ins. 72000 - Dep. 18000 By Closing Stock By Debtors By Bank balance By Cash balance 92500 6000 105000 140000 49000 56000 54000 88000 1190700 1306196 559799 4259195 P & M 138750 Rs. Property Asset Land Building 216000 - Dep. 24000 Rs. 420000 192000

4259195

4259195

Projected Cost Sheet Of Shri Ltd. For 2nd Year

Particulars
1 Direct Material Cost Opening Stock + Purchase of Raw Material - Closing Stock (A) Cost of Raw Material Consumed Other Direct Expenses Dep. on Equipments, P & M etc. (B) PRIME COST Factory Overhead Water Charges Electricity Charges Repair & Maintenance of Machines Insurance of Factory Electrification of Inst. Exp. Salary to Factory Supervisor Preliminary Expenses Salary to Watchman Wages to Unskilled Worker (C) FACTORY COST Office & Administrative Overhead Salary to Accountant Salary to Computer Operator Salary to Peon Postage & Stationary Legal Fees Interest on Capital Audit Fees Miscellaneous Expenses (D) COST OF PRODUCTION OF GOODS MANUFACTURED Selling & Distribution Overhead Selling Expenses Tax paid Salary to Salesman Dep. on Delivery Van

Rs.
80000 2122648 88000 115250 26400 198000 26400 24000 18000 79200 12000 26400 132000 52800 66000 26400 19800 39600 306960 19800 19800

Rs.

2114648 2114648 115250 2229898

2 3

542400 2772298

551160 3323458

66000 150760 118800 30000

365560

TOTAL COST PROFIT SALES

3689018 279982 3969000

Projected Trading A/C. Of Shri Ltd.

Particulars
To Opening Stock To Purchase To Repair & Maintenance To Wages to Unskilled Labour To water charges To Electricity To Gross Profit (Trans. to P & L A/c.)

For 3rd Year

Rs. Particulars Rs.
5040000 96000 88000 By Sales 2646384 By Closing Stock 29040 145200 29040 217800 1980536 5136000 5136000

Projected Profit & Loss A/C. Of Shri Ltd. For 3rd Year
Particulars
To Salary to Supervisor Watchman Accountant Computer Operator cum Clerk Salesman Peon To Depreciation Building 24000 P&M 46250 Computer 12000 Furniture 22500 Delivery Van 30000 Other Equip. 10500 To Pre. Exp. W/F To Ele. & Ins. Charges W/F To Selling Expenses To Tax paid To Postage & Stationary To Audit Fees To Mis. Exp. To Insurance To Legal Fees To Net Profit (Trans. To P & L App.)

Rs.

Particulars

Rs.

87120 By Gross Profit 1980536 29040 (Trans. From Trading A/c.) 58080 72600 130680 29040

145250 12000 18000 72600 310193 21780 21780 21780 24000 43560 883033 1980536 1980536

Projected Profit & Loss Appropriation A/C. Of Shri Ltd. For 3rd Year
Particulars
To interest on Capital Bansi Yash 153480 153480

Rs.

Particulars

Rs.

By Net Profit 883033 (Trans. From P & L A/c.) 306960

To Net Divisible Profit Bansi 288036.5 Yash 288036.5

576073 883033 883033

Projected Balance Sheet Of Shri Ltd.

Capital Liability
To Capital A/C Bansi 2417634 Yash 2417634 Land Building 192000 - Dep. 24000 4835268 P & M 92500 - Dep. 46250 Computer 6000 - Dep. 6000 Furniture 105000 - Dep. 22500 Delivery van 140000 - Dep. 30000 Other Equip. 49000 - Dep. 10500 By Pre. Exp. 56000 - Dep. 12000 By Ele. & Ins. 54000 - Dep. 18000 By Closing Stock By Debtors By Bank balance By Cash balance 4835268 420000 168000 46250 82500 110000 38500 44000 36000 96000 1512000 1597413 684605 4835268

For 3rd Year

Rs. Property Asset Rs.

Projected Cost Sheet Of Shri Ltd. For 3rd Year

Particulars
1 Direct Material Cost Opening Stock + Purchase of Raw Material - Closing Stock (A) Cost of Raw Material Consumed Other Direct Expenses Dep. on Equipments, P & M etc. (B) PRIME COST Factory Overhead Water Charges Electricity Charges Repair & Maintenance of Machines Insurance of Factory Electrification of Inst. Exp. Salary to Factory Supervisor Preliminary Expenses Salary to Watchman Wages to Unskilled Worker (C) FACTORY COST Office & Administrative Overhead Salary to Accountant Salary to Computer Operator Salary to Peon Postage & Stationary Legal Fees Interest on Capital Audit Fees Miscellaneous Expenses (D) COST OF PRODUCTION OF 5 GOODS MANUFACTURED Selling & Distribution Overhead Selling Expenses Tax paid Salary to Salesman Dep. on Delivery Van

Rs.
88000 2646384 96000 115250 29040 217800 29040 24000 18000 87120 12000 29040 145200 58080 72600 29040 21780 43560 306960 21780 21780

Rs.

2638384 2638384 115250 2753634

2 3

591240 3344874

575580 3920454

72600 310193 130680 30000

543473

TOTAL COST PROFIT SALES

4463927 576073 5040000

Capital A/C For 1st Year

Particulars To Balance c/d

Bansi

Yash

1989606.5 1989606.5 1989606.5 1989606.5

Particulars By Balance b/d By Net Profit

Bansi 1918500 71106.5 1989606.5

Yash 1918500 71106.5 1989606.5

Capital

A/C for 2nd year

Particulars

Bansi

Yash

Particulars By

Bansi

Yash

Balance 1989606.5 1989606.5 139991 2129597.5

To c/d

b/d Balance 2129597.5 2129597.5 By Net Profit 139991 2129597.5 2129597.5 2129597.5

Capital A/C For 3rd Year

Particular s

Bansi Yash

Particulars
By Balance b/d By Net Profit

Bansi

Yash

2129597.5 2129597.5 288036.5 288036.5 2417634 2417634

To Balance c/d

2417634 2417634 2417634 2417634