Chilli Powder
Chilli Powder
Chilli Powder
Partner 2
Name : Chandarana Yask K.
Address : Mile Stone,
Opposite to Bank of Karnatak,
Kalawad Road,
Rajkot.
Age : 26 years
Qualification : MBA with Finance Management.
Role in Unit : Management of Finance & Production
Department.
Financial : 50%
Contribution
Justification Of Location
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.
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.
1. Pulverizer Machine
2. Electronic Weighing Machine
3. Filling Machine
4. Plastic Bag Sealing Machine
5. Electric HP Motors
6. Mixing Tank with Agitator
Manufacturing Process
(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.
(3) Pulverization: -
Next step is of Pulverization. Chillies are smashed into
fine powder through special machines called Pulverizer.
Chilly Powder
Manufacturing Process
Cleaning
Pulverizing
Mixing Oil
Production Capacity Schedule
Year Units (in kg.) (p. a.) Selling Price Amount (Rs.)
1 37800 85 3213000
2 44100 90 3969000
3 50400 100 5040000
4 56700 110 6237000
5 63000 120 7560000
Cost Per Unit
2994210
= 37800
= 79.21
1033250
= 37800
= 27.33
1654000
= 37800
= 43.76
Break Even Point Analysis
(a)
Selling Price 85.00 (per unit)
- Variable Cost 43.76 (per unit)
Contribution 41.24 (per unit)
1033250
=
41.24
= 25054.56
= 39.77%
Return On Investment
EBIT
ROI = Cost of Project 100
525750
= 3837000 100
= 13.70%
Profitability & Its Analysis
Sales 3213000
- Variable Cost 1654000
Contribution 1559000
- Fixed Cost 1033250
EBIT 525750
- Interest 306960
EBT 218790
- Tax ( 35%) 76577
EAT 142213
(1) Gross Profit Ratio: -
Gross Profit
Gross Profit Ratio = Sales 100
1211000
= 3213000 100
= 37.69%
2994210
= 1295000
= 2.31%
Cost Of Capital
16
= 2
= 8%
Risk Factors
Raw Material
Consumed
Chilly 40000 1600000 46667 2045348 53333 2551984
Oil 1800 54000 2100 69300 2400 86400
TOTAL 41800 1654000 48767 2114648 55733 2638384
Particulars Of Finished Goods
Method of Accounting: -
Double Entry System
Method of Depreciation: -
Straight Line Method
3293000 3293000
Projected Profit & Loss a/c. Of Shri Ltd. For 1st Year
Particulars Rs. Particulars Rs.
To Salary to By Gross Profit 1211000
Supervisor 72000
Accountant 48000 (Trans. From Trading A/c.)
Computer Operator cum 60000
Clerk
Salesman 108000
Peon 24000
Watchman 24000
To Pre. Exp. W/F 12000
To Ele. & Ins. Exp. W/F 18000
To Depreciation
Building 24000
P&M 46250
Computer 12000
Furniture 22500
Delivery Van 30000
Other Equip. 10500 145250
To Selling Exp. 60000
To Postage & Stationary 18000
To Tax paid 76577
To Legal Fees 36000
To Audit Fees 18000
To Mis. Exp. 18000
To Insurance 24000
To Net Profit 449173
(Trans. To P & L App.)
1211000 1211000
Projected Profit & Loss
Appropriation A/C. Of Shri Ltd.
For 1st Year
449173 449173
Projected Balance Sheet Of
Shri Ltd. For 1st Year
Capital Liability Rs. Property Asset Rs.
Land 420000
To Capital A/C Building 240000
Bansi 1989606.5 - Dep. 24000 216000
Yash 1989606.5 3979213 P & M 185000
- Dep. 46250 138750
Computer 30000
- Dep. 12000 18000
Furniture 150000
- Dep. 22500 127500
Delivery van 200000
- Dep. 30000 170000
Other Equip. 70000
-Dep. 10500 59500
By Pre. Exp. 80000
- Dep. 12000 68000
By Ele. & Ins. 90000
- Dep. 18000 72000
By Closing Stock 80000
By Debtors 963900
By Bank balance 1151894
By Cash balance 493669
3979213 3979213
4057000 4057000
Projected Profit & Loss A/C. Of Shri
Ltd. For 2nd Year.
586942 586942
Projected Balance Sheet Of Shri
Ltd. For 2nd Year.
Capital Liability Rs. Property Asset Rs.
Land 420000
To Capital A/C Building 216000
Bansi - Dep. 24000 192000
2129597.5
Yash 4259195 P & M 138750
2129597.5
- Dep. 46250 92500
Computer 18000
- Dep. 12000 6000
Furniture 127500
- Dep. 22500 105000
Delivery van 170000
- Dep. 30000 140000
Other Eqip. 59500
- Dep. 10500 49000
By Pre. Exp. 68000
- Dep. 12000 56000
By Ele. & Ins. 72000
- Dep. 18000 54000
By Closing Stock 88000
By Debtors 1190700
By Bank balance 1306196
By Cash balance 559799
4259195 4259195
Projected Cost Sheet Of Shri
Ltd. For 2nd Year
5136000 5136000
Projected Profit & Loss A/C. Of Shri Ltd. For 3rd Year
883033 883033
Projected Balance Sheet Of Shri
Ltd. For 3rd Year
Capital Rs. Property Asset Rs.
Liability
Land 420000
To Capital A/C Building 192000
Bansi 2417634 - Dep. 24000 168000
Yash 2417634 4835268 P & M 92500
- Dep. 46250 46250
Computer 6000
- Dep. 6000 -
Furniture 105000
- Dep. 22500 82500
Delivery van 140000
- Dep. 30000 110000
Other Equip. 49000
- Dep. 10500 38500
By Pre. Exp. 56000
- Dep. 12000 44000
By Ele. & Ins. 54000
- Dep. 18000 36000
By Closing Stock 96000
By Debtors 1512000
By Bank balance 1597413
By Cash balance 684605
4835268 4835268
Projected Cost Sheet Of Shri Ltd.
For 3rd Year