Kitty Wafer

8/2/2019 Kitty Wafer

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INDEX

Sr.No. Particular Page No.1. Introduction of S.S.I. 02

2. Project at Glance 04

3. Owners Bio-data 05

4. Organisation Structure 06

5. Justification of Location 07

6. Product Details 09

7. Suppliers of Raw-material 108. Processing of Food Products 11

9. Production Process 12

10. The Quality Commitment 13

11. Suppliers of Machinaries & Equipments 14

12. Chennal of Distribution 15

13. Market Development 16

14. Pricing Policy 1715. Financial Aspects 19

16. Financial Provisions 22

17. Break Even Analysis 27

18. Calculation of B.E.P. 28

19. Ratio Analysis 29

20. Sources of Finance 30

21. Summary 3122. Future Prospects 32


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INTRODUCTION OF S.S.I.

In todays era where global competition exists, there is a

need for professional management in every sector. Hence, theeconomists always say that the S.S.I. is the only base or pillar of the

Indian Economy. Most of the businesses carried out in India are on a

small scale.

The S.S.I. is enjoying the success of department economy

because it is the main part of the economy. It also provides the

platform and opportunity to the new entrepreneur. It provides the

employment opportunities, raw material or inputs to large scale and

middle scale industries.

S.S.I. is the base for the middle and large scale industries.

It also gives a chance to new entrepreneurs to start a unit with a

limited capital and it would ultimately play a major role in sharing the

development of the company.

The S.S.I. makes the perfect entrepreneurs through

experience and provides high quality of development towards

personality, skill and sense.

Definition :-

According to the Government of India, The industries

whose investment in the plant and machinery is up to Rs. 3 Cr. is

termed as Small Scale Industry.

- Budget of A.D. 2005.

The definition of S.S.I. does not remain certain and

constant because with the passing of time their parameters keep

changing.

In India, the literacy and education is now increasing at a

faster rate than before and so now more people have now started

moving towards the industry from agriculture. These people can get

self-development and self-esteem with the help of S.S.I. only.


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In India, before 1991, great importance was given to the

large-scale industries and there was hazardous avoidance of small-

scale sector, but after 1991, Government realized that only S.S.I. can

lead to the development of the Indian Econo my.

Hence, more emphasis is laid towards the S.S.I.


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PROJECT AT GLANCE

Name of the Unit :- PARTH FOOD PVT. LTD.

Registered Office :- University Road,

Nr. Indira Circle,

Paritosh Building,

Shop No.8,

Rajkot-360 004.

Location of the Unit :- Plot No. 205, GIDC,

Lodhika,

Kalawad Road,

Metoda,Rajkot-360 005.

Form of Organization :- Sole Proprietorship Firm

Name of Promoter :- Sadariya Prashant R.

Brand Name :- Kitty Wafer

Size of the Unit :- Small Scale Unit

SSI Registration Number :- Applied for

Subsidy Registration No. :- Applied for

Cost of Project :- 13,40,370

Means of Finance :- State Bank of India &

Own Capital

Sources of Capital :- 80 % owned Capital

20 % Borrowed Capital

Day Off Wednesday

E-mail Address [email protected]

Accounting Year 1s t

April To 31s t

March
mailto:[email protected]:[email protected]:[email protected]


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OWNERS BIO-DATA

Name :- Sadariya Prashant R.

Age :- 20 years

Address :- University Road,

Pushkar Dham,

Block No. 115

Rajkot.

Education/

Qualification :- B.B.A. (Third Year with Finance Running)

Responsibility :-

With a good communication ability and a little but

effective experience in the field of Finance. Mr. Prashant

will handle the Finance & Audit of the unit.

Experience :-

Mr. Prashant is having a 6 Months of experience in the

Finance field of one of the F.M.C.G. Product. He is having

the good communication ability.


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ORGANISAION STRUCTURE

Organization Structure

Marketing

Manager

Finance

Manager

Production

Manager

Personnel

Manager

Salesman Office Staff AccountantProduction

In-char e

Workers

OWNER


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JUSTIFICATION OF LOCATION

Tax Benefit :-One reason why the location on has been selected over there was of

the Tax Benefit. Because it is an industrial area. Tax Benefit is given to

motivate entrepreneurs for expanding the business.

EASY LABOUR SUPPLY :-As the selected location is situated in rural area [Metoda] and the rate

of lower class People are very high. There is an easy availability of labor at

low wages, that ultimate reduce total cost of the product. So, the need of

unskilled worker can fulfill easily.

SOCIAL RESPONSIBILITY :-It is again consider as a part of social responsibility. The location

selected is far distance from the living area of people and we are providing

employment to rural area.

EASY AVAILABILITY OF RAW MATERIALS :-Raw material like Potatoes etc. at the same time water, diesel, power, fuel is

also available easily.

LARGE LAND AVAILABILITY :-Large plots of the land are available at area selected which makes

factory to build separate area for store room, office, gate security office etc.


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POWER :-As we know it is the foremost thing requires for production process.

Here powers in terms of electrical diesel etc. are available, because factory is

situated in an industrial area. There will be a sufficient power supply and the

uniformity in getting supply can be maintained.

GOVT. SUBSIDIES & FACILITIES:-As the location selected is in the industrial area, govt. help by making

capital, land, Water and power available at subsidies rates. The govt. may give

such facilities as tax exemption, banking, insurance and postal facilities at lowrates.


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PRODUCT DETAILSBrief description of product of the firm is as follows:

Any person who is said to be a diamond in his field. The word itself

gives us the idea that how precious it is.

With the change in time, people move towards the snack food. As the

consumption of food products like wafer is more preferable and hence the demand

of wafer has increase day by day.


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Suppliers of raw-materialThe raw-material is the important component of the production

process. When the raw-material are collected then and only then. Production is

posssible if the raw-materials are available in cheapest way it is the most important

advantages for the firm. The raw-material can be compared to water air and fuel.

For human beings which are very important so as the raw-material for the firm.

The main raw-material means POTATO will bring from marketing

yard at reasonable rates.


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Processing of Food Products Why do we process food ?

To convert to edible products

To preserve

To extend availability and provide accessibility

To provide variety & choice

To provide convenience

To add value

Unit Operations :-The processed involved in manufacturing food products are known as

unit operations. These include:

Storage e.g. keeping raw materials in good conditions.

Cleaning e.g. removing foreign matter.

Sorting / grading e.g. assessing the quality Size reduction e.g. firming, slicing, trashing

Mixing looming.

Heat transfer e.g. cooking & cooling.


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pRODUCTION processMost food which is manufactured goes through a number of common

steps. The specific details of each may differ but the basic principles are the same.

Vertical elevator

Slicer

Slice Waser

Blancher

Shuker

High Speed Belt

Fryer

Inspection Converge

Spice Dram

Packaged and labeled

Stored usually on pallets

Dispatched for transportation


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The Quality CommitmentKitty wafer industry is located at Strategic location for convenience

and constant output and easy distribution. Industry has the latest machinery with

automatic packing facilities.

All products are manufactured under the most hygienic conditions.

Great care is exercised in the selection and quality control of Raw Materials,

Packing Materials and rigid quality Standards are ensured at every stage of the

manufacturing process. Each batch of biscuits is thoroughly checked by expert

staff, using the most modern equipment.

THE CUSTOMER CONFIDENCE:

The consumer is the focus of all activities at Food industry

Maximizing value to consumers and forging enduring customer relationships are

the core endeavors at Kitty wafer industry.

Our efforts are driven towards maximizing customer satisfaction and

this is in synergy with our quality pledge.

Kitty wafer industry will strive to provide consistently nutritious &

quality food products to meet consumers satisfaction by using quality materials

and by adopting appropriate processes. To facilitate the above will strive to

continuously train our employees and to provide them an open & participative

environment.


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SUPPLIERS OFMACHINARY AND EQUIPMENTIn firm machinaries are as important as finance and raw-material.

Now a days due to change in technology there has been a great change in the

machines and equipment. For longer survive in market these new technology have

been adopted by our firm. Due to advancement in technology, suppliers are

providing machine and equipments of good quality at reasonable cost to our firm.

There some name of the suppliers who facilitate us very well,

Mahavir Machinary Pvt. Ltd.

79,DLF, Industrial Area,

New Delhi.


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CHANNEL OF DISTRIBUTION Channel of Distribution is the set of marketing institution

participating in the marketing activities involved in the movement of the flow ofgoods or services from the primary produce to the ultimate consumer.

In case of Parth food Pvt. Ltd. They are following as under :

Manufactures

Dealers

Whole Sellers

Retailers

Customers


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Market DevelopmentMarket development involves creating or expanding a Market. To new

or existing products and/or increasing the value of these products. The strategy of

the product will depend on the current stage in the product life cycle. Once more

people know, a significant challenge is going to get more people to actually try the

product. This is due to vast choices of other products that consumers can consume.

The strategic planning process in order to make good investment

decision with respect to how much to spend on Marketing & how to allocate this

spending among opportunities available e.g. advertising & price promotions. It is

useful to go through a strategic planning process.

As this is a new product in the Market. So, one has to see that there

should be cost reduction by improving the quality. So the maximum use of

available resources can work at this stage but again here, the specialized product

i.e. only tomato & other nankeen wafer will be produce. There will be a

considerable beginning power because of large quantities purchased. Firm canadopt new technology and can develop research & develop department efficiently

that allow superior quality & performance.


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PRICING DECISIONPricing is a very critical decision for any organization. Price is the

only element of marketing mix that produces revenue and all the other element

produce costs. It is also counted as one of the most flexible elements of the

marketing mix as in that it can be changed quickly as per the market position and

demand unlike the other Ps of the marketing mix.

At the same time pricing decisions and pricing strategies is the

number one problems faced by the companies. Pricing becomes important as bysetting the right price only can a company generate profiles. If the prices of the

product are not right or not set according, the company may have huge losses.

A uniform price for the entire product is ruled out because the nature

of goods or services they produce or provide. The production function and market

situation are not uniform. Hence, it is based on the nature of the business.


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FINANCIAL ASPECTSLAND :-

Sr.

No.

Particulars SquareMeter

Rate PerSq. Meter

Amount

1. Open Land 400 500 2,00,000

2. Registration - - 79,000

TOTAL :- 2,79,000

BUILDINGS :-

Sr.

No.

Particulars Area Rate PerSq. Meter

Amount

1. Factory Shed 300 1,000 30,000

2. Office 50 1,200 60,0003. Other (R & D,

bathroom, water

Tank Designingetc.)

50 1,350 67,500

TOTAL :- 4,27,500


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PLANT& MACHINARY :-

Sr.

No.

Particulars Area Rate PerSq. Meter

Amount

1. Potato Washing

Machine

01 2,25,000 2,25,000

2. Potato Slicing

Machine

50 1,200 60,000

3. Other (R & D,water TankDesigning etc.)

50 1,350 67,500

TOTAL :- 3,52,500

FURNITURE & VEHICLE :-

Sr.

No.

Particulars Amount

1. Office Furniture 2,27,000

2. Vehicles 7,65,000TOTAL :- 9,92,000


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WORKING CAPITAL COST OF PROJECT :-

Sr.

No.

Particulars Amount

1. Value of raw-materials 7,39,200

2. Wages & Salary 1,03,500

3. Electricity bills 14,400

4. Overhead Expenses 5,700

Total Working Capital (one year):- 8,62,800

Total Working Capital (one month):- 71,900

TOTAL COST OF PROJECT :-

Sr.

No.

Particulars Amount

1. Fixed Assets 16,15,5002. Working Capital (two months) 1,43,800

TOTAL COST OF PROJECT :- 17,59,300


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FINANCIAL PROVISIONSLOAN :-

MEANS OF FINANCE :-

Sr.

No.

Particulars Amount

1. G.S.F.C. 6,30,000

2. Own Contribution 5,79,300

3. Bank 5,50,000

TOTAL :- 17,59,300

Sr.

No.

Particulars G.S.F.C. OWN BANK Total

Amt. Rs.1. Land 1,30,000 1,00,000 - 2,30,000

2. Building 2,00,000 77,500 1,50,000 4,27,500

3. Plant &

Machinary

3,00,000 2,66,000

-

5,66,000

4. Furniture &

Vehicles

- 92,000 3,00,000 3,92,000

5. Working

Capital

- 43,800 1,00,000 1,43,800

TOTAL :- 6,30,000 5,79,300 5,50,000 17,59,300


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RAW-MATERIAL :-

LABOUR CHARGES :-

Sr.

No.

Description No. of

Require

Salary Yearly

Salary1. Skilled Labors 01 2,500 30,0002. Semi- skilled Labors 01 2,000 24,000

3. Unskilled Labors 02 1,500 36,000

TOTAL :- 04 -- 90,000

Add:- 15% Other

Benefit

- -- 13,500

Total Labor Charges:- - -- 1,03,500

ELECTRICITY BILL :-

Sr.No.

Particulars Require-ment

RATE MonthlyRs.

YearlyRs.

1. Potato 28,000 1.10 30,800 3,69,600

2. Spices 28,000 1.10 30,800 3,69,600

TOTAL :- 56,000 - 61,600 7,39,200

Sr.

No.

Particulars Monthly Rs. Yearly Rs.

1. Electricity Bill 1,200 14,400


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REPAIRS & MAINTENANCE :-

Sr.

No.

Particulars Yearly Rs.

1. Repairs & Maintenance 13,000

INSURANCE & TAXES :-

Sr.

No.


1. Insurance & Taxes 12,000

DEPRICIATION :-

Sr.

No.

Particulars Rate of

Depreciation

Yearly Rs.

1. Building 5% 21,375

2. Machinary 15% 84,900

3. Furniture 10% 39,200

Total Depreciation - 1,45,475


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INTEREST :-

ADMINISTRATIVE EXPENSES :-

Sr.

No.

Particulars Principle

Amt. Rs.

Yearly

Interest1. G.S.F.C. 6,30,000 1,00,800

2. Own Contribution (15%) 5,79,300 86,895

3. Bank (18%) 5,50,000 99,000

Total Interest - 2,86,695

Sr.

No.

Particulars Monthly Rs. Yearly Rs.

1. Stationary 500 6,000

2. Postage & Telephone 1,200 14,400

Total Amount 1,700 20,400


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TOTAL COST OF PRODUCTION :-

Sr.

No.


1. Raw-materials 7,39,200

2. Labor Charges 1,03,500

3. Electricity Bill 14,400

4. Repairs & Maintenance 13,000

5. Insurance & Taxes 12,000

6. Depreciation 1,45,475

7. Interest 2,86,6958. Administrative Expenses 5,700

TOTAL COST OF PRODUCTION :- 13,40,370


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= Rs. 8,60,910


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CALCULATION OF B.E.P.Particulars Amount (Rs.) Amount (Rs.)SALES 18,83,280

Less : Variable Cost :- Raw materials Labor charges Administrative expenses Electricity Bill Overhead Expenses

7,39,2001,03,500

20,400

14,400

5,700 8,83,200

Contribution :- 10,00,080

Less : Fixed Cost :- Interest Depreciation Insurance & Taxes Repairs & Maintenance

2,86,695

1,45,475

12,00013,000 4,57,170

Profit Before Tax :- 5,42,910

Less : Income Tax @ 35% 1,90,019

Net Profit :- 3,52,891


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RATIO ANALYSISProfit Volume Ratio :-

= Contribution * 100

Sales

= 10,00,080 * 100

18,83,280

= 53.10 %

NetProfit Ratio :-= Net Profit * 100

Sales

= 3,52,891 * 10018,83,280

= 18.74 %


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SOURCES OF FINANCEIn the market there are lots of finance resource are available through

any firm can survive for longer time or can start his/her own business or can have

expansion of the business.

The finance will be available through the bank and from the promoter

of the firm Rs. 5,50,000/- will be available as the bank loan and the remaining

portion Rs. 5,79,300/- will be available from owner of the firm.


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SUMMARYLooking towards the current tend and demand of food packets the

future of project seems to be very bright. Day by day the use will increase as the

price rise in demand of it. In addition, it is very easy to maintain the management

of this business.


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Future prospectsAfter some time prospects to produce varieties of the wafer. As the

starting of this project is little bit easy. It becomes profitable for the firm. To start

these there would necessary of the same machinery of the firm.

Kitty Wafer

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