Project Reports on Feasibility on Foam Manufacturer

Description
A foam is a substance that is formed by trapping pockets of gas in a liquid or solid. A bath sponge and the head on a glass of beer are examples of foams. In most foams, the volume of gas is large, with thin films of liquid or solid separating the regions of gas.

A FEASIBILITY REPORT ON

FOAM MANUFACTURING

GROUP NAME:-O TYMBA 2005-2006

K.S.SCHOOL OF BUSINESS MANAGEMENT GUJARAT UNIVERSITY AHMEDABAD

CERTIFICATE
This is to certify that Mr./Miss Group ‘O’ of T.Y. B.B.A. from K.S. School of Business Management & Research has successfully completed a project on a feasibility study of ‘Foam Manufacturing’ for academic year 2005-2006 and has duly submitted to the institute. Date of submission 1-3-2006 Project Guide Prof. Ms. BINDYA PATHAK

Group Name- O
Roll No. 3114 3128 3134 3135 3143 3145 3148 3168 3198 3201 Name GARGEE CHAUHAN MANSURI FIRDOS MITHILESH KUMARI CHINTAN MODI ALKA PARMAR SUPASNA PARMAR ARTI PATEL MEHUL SAGAR SWETA VASAIYA JIGAR PAREKH

PROJECT GUIDE: Ms. BINDIYA PATHAK

CONTENTS

No. 1. 2. a) b) c) d) 3. 4. a) b) c) 5. a) b) c) 6. a) b) c) 7. a) b) c) d) e) f) g) h) i) j) 8. 9. 10.

Particular Acknowledgement Introduction Feasibility report General Introduction History of Foam Business Environment Formation of company Technical feasibility Production Process Miscellaneous expenses Plant Lay out Man power planning Organization structure Salary structure Job description & job Specification Marketing feasibility Vision 4p’s of marketing Product evaluation Financial feasibility Cost of project Annexure Working capital Cost sheet Profit & loss account Balance sheet Fund flow statement Break even analysis Capital budgeting Ratio analysis Future plan Conclusion Bibliography

Page no. 4 8 8 9 14 18 23 36 39 42 43 47 48 49 50 56 58 67 70 83 87 88 89 101 114 115 117 118 119 120 124 125 126

ACKNOWLEDGEMENT

We express our gratitude towards those who were constantly involved with us throughout our project. Without there help we would not have been able to complete it. First and foremost, we would like to express our gratitude to our college K.S.SCHOOL of BUSINESS MANAGEMENT and its director Mrs. Sarla Achuthan for giving us this golden opportunity of making project on the feasibility study as part of our curriculum activity. We are highly thankful & indebtedly grateful to our project coordinator Ms. Bindiya madam for her assistance and cooperation to us. This project is dedicated to all the people whom we met, took guidance, talked, interviewed and learnt something from them. At this occasion we want to grab this immense opportunity to acknowledge our sincere thanks to all while submitting this report. We are also heartedly thankful for the assistance received from various individuals and the faculty members in making this project successful. . At last but not least we are also thankful to all our group members for there hard work and support to complete this project and hope the same in future

PROJECT AT GLANCE

Name of the Firm: Registered office: Factory shade: Constitution: Privet Limited company Date of in corporation: Cost of Project: Pay back Period: Debt Equity Ratio: Current Ratio:

CAMPLAST FOAM PVT. LTD. GIDC Vatwa. GIDC Vatwa. PRIVET COMPANY 1st April 2006. 218.68 LAKHS 3 YEARS & 3 MONTHS 1.3 TIMES 2.03 TIMES

PREFACE
The importance of the project preparation has been widely accepted in the education institution as well in business field. The essence of the project preparation is to gain some experience of working of an enterprise. In this project the student get a chance to see and observe the application of their theoretical knowledge. During the project work, we also get a chance to meet the senior executives and platform for learning from their experience. We have visited CMIE, GCCI, GIDC, INDEXTB, and GITCO. The Polyurethane foam manufacturing companies have visited by us:• SURYA INDUSTRY Ph.4/3503, GIDC Vatwa. • REACTIVE POLYMERS LTD. Plot no. 1396-97, Ankhi Vavli road, Bharuch. This opportunities of the project work provided to us , was not only a platform to develop and enhance our desire for learning but also served as a combination

of

the

theoretical

concept

and

their

practical

application in the corporate world.

PROLOGUE
We express our gratitude to all those who have extended their tremendous support and cooperation. Mr. P.J.Shah Mrs.K.P.Shah Mr. Ashokbhai Dave Mr. Jayeshbhai Patel Mr. K.H.Joshi We are immensely for General Manager Reactive polymers ltd. Finance manager Reactive Polymers ltd. General Manager Surya Industry Owner Fortune Foam House Senior Officer-IndextB thankful to all the above The and

individuals, learning

their valuable the things

coordination. managed

disclosure of their real experiences helped us in how are coordinated. It would have been difficult for us to collect such a large amount of information and learn so much from their experience. Thus, without the genuine support of the entire above individual, undoubtedly, the work of excellence could not be possible since they have been greatest source of inspiration for us, and to support the trainees like us

was a great gesture on their part, for which we once again thank to them.

Selection of project reasoning
Each and every individual, firm, industry and nation wants to be ahead of another with the help of adequate resources, enthusiastic and risk taking entrepreneurs, and adequate and amiable labour force, proper transportation and other Infrastructural facilities along with the line help the business units to bloom. With the same hope of bright future, we propose to venture ourselves in the field of Polyurethane foam where the scope of development is extended up to the horizons. We have selected this product because it has great scope in future and it will acquire good awareness among the people and good position in the market. The significant reasons for the growing popularity of Polyurethane foam includes:• Insufficient comfort from Latex foam manufacturing product. • Scarcity of soft products of Polyurethane foam in bus-seats, theatres, holes, cars seats etc. • Deterioration of treated Latex foam by the time it reaches the consumption. • Improvement in the living standard of people. • To give the people leave from back-bone pain. This leads the phenomenal growth in the use of Polyurethane foam manufacturing product.

INTRODUCTION
FEASIBILITY REPORT
A report which projects the practical viability of a venture with respect to different dimensions is called a feasibility report. Aspects followed by the venture • Technical feasibility: - It includes technology selection requirement of utilities, raw materials, indirect materials, manpower etc. • Marketing Feasibility: - Just producing a product is not ultimate end, but rather a beginning. It must be accepted and adored by customers. • Financial Feasibility: - It includes all the data related to balance sheet, cash flow aspects, depreciation, Description about loan, insurance etc. • Government Formalities: - For consumer goods industry govt. is totally favorable. Therefore legal procedure becomes easier.

GENERAL INTRODUCTION
Flexible Polyurethane foam is chemically complex polymeric product having a broad range of load bearing capacity and resiliency, offering comfort as cushioning material for furniture, bedding, carpet, underlay, and automotive interiors. FPF also offers protective shock absorption performance for use in packaging and automotive applications. Polyurethanes are familiar production in everyday life among versatile group of wonder plastic for extensive use. This material has high porosity, low weight to volume ratio, goodthermal and acoustic properties, good resilience, abrasion, resistance, and oil resistance. This plastic material has gained much importance by leaps and bounce is presently known as ‘Wonder Material’. Throughout the world because of its unique properties and varieties of its applications. The basic raw material i.e. Polyisonate of various application are now being manufactured in India. The other raw materials Dysocynate are being imported at present. There are basically six types of Foam:1. LATEX FOAM(RUBBER FOAM) 2. URETHANE FOAM (U FOAM) 3. POLYURETHANE FOAM(PU FOAM) 4. COIR FOAM 5. ZEE FOAM 6. PVC FOAM

As we have seen earlier, the introduction of Polyurethane foam. Now it also includes various types of Polyurethane foam.

• Flexible foam
Flexible molded foams are made by the reaction of flexible molded grade Polyisonate with Disocynate. These foams have high resilience and good vibration dampening property and hence widely used as seat cushions in automotive industry. Flexible PU Foam can be seen in carpet, underlay, and packaging. Foam can be created in almost in variety of shape and firmness. It is light, durable, supportive and comfortable.

• Rigid Foam
It is one of the most popular, energy efficient and versatile insulation. It significantly cuts fuels and construction cost, while making commercial and residential properties safer, better utilized and more comfortable around the globe. Low weight, low density, rigid foam is particularly used in insulation industry. Rigid polyisonate is reacted with Isoujanate (MDI) to produce rigid grade P.U. These products are rigid because of its structural integrity. It is also known as Melton Foam.

• INTEGRAL SKIN FOAM
It is also known semi flexible and semi rigid foams are used in automobile dash board, staring wheels, arm rest, head rest etc. These products are made from diolshriols with reaction with Isognate. It is highly elastic, flexible and resistant to abrasion impact and weather. Semi- flexible foam can be coloured or fabricated in a wide variety of methods and their use increases a products overall durability.

• CASE(Coatings,adhesives,Sealants,Elastomer sfoam
Polyurethane coatings make a product look better and last longer. Polyurethane adhesives provide strong bonding advantages. Polyurethane sealants provide tighter seals. Polyurethane elastomers can be molded into almost any shape, are lighter than metal, offer superior stress recovery and can be resistant to many environmental factors.

• Thermoplastic Polyurethane foam
Thermoplastic polyurethane (TPU) offers a myriad of physical property combinations and processing applications. It's highly elastic, flexible and resistant to abrasion, impact and weather. But because Rubber foam is replaced by Polyurethane foam. It is more demanded by the customers because of its features of comfort, comparison, and power so; it is more produced in the industry.

THE VERSATILITY OF FLEXIBLE POLYURETHANE FOAM
Flexible polyurethane foam (FPF) affects our lives in many ways and new applications are rolling out on a regular basis. It is used as cushioning for a wide variety of consumer and commercial products including seat & back, furniture, carpet cushion, transportation, bedding, packaging, and textiles and fibers. FPF accounts for 40% of the entire Indian polyurethane market, which is used primarily for carpet cushion and furniture. Most of the remainder, a little less than 23% of the total FPF produced, is used by the transportation industry for automotive interiors and other purposes.

Furniture
FPF cushions upholstered furniture, office chairs, stadium seating and auditorium seating.

Carpet Cushion
FPF improves the comfort and lifespan of our carpet. By absorbing much of the energy from traffic, FPF protects the carpet face allowing the carpet to look better longer. Its design and construction provides long-term comfort without excessive thickness, maintaining the desired feel underfoot throughout the life of the installation.

Transportation
FPF is used extensively in the transportation industry for seating, headrests, arm rests, HVAC components, interior panels and skins, car and truck fenders, truck beds and

support rings for run-flat tires, headliners and other interior systems.

Bedding
FPF is the primary material used today for adding support and comfort to padded bedding products. Over the past two years, the industry has produced thicker and larger bedding products. This is evidenced by the increasing popularity of pillow-top mattresses.

Packaging
FPF provides protection and cushioning to packaged products. Polyurethane foams are often used to package highly sensitive equipment such as electronics, printed circuit boards, jewelry and delicate foods. FPF’s lightweight, water resistance, shock absorption and resiliency make it an attractive application for packaging.

HISTORY OF POLYURETHANE FOAM
Forty years ago, flexible Polyurethane foam (FPF) made its way onto the upholstered furniture scene in a big way. More cost effective than its predecessor, latex foam rubber, FPF offered foam manufactures a high quality material. Over the past four decades, the FPF industry has streamlined its production techniques to contain cost and improve its quality to provide manufactures with the most durable and versatile foam available on the market. Polyurethane foam was created during World War II for the insulation of refrigerators and airplanes. It replaced balsa wood. Because this polymer was cheaper, easier to shape, man-made and abundant, it possessed great potential to be used in many practical applications. So it is of no surprise that we find this polymer in many areas of our lives including: furniture cushions, shoe soles, insulating materials, adhesives, flotation devices, cellular scaffolding for bone regeneration, and acoustical vibration control. P.U chemistry was first studied by one man’s genius, Prof. Dr. OTTO BAYER (1902-1982). Prof. Dr. OTTO BAYER is recognized as the “Father” of the polyurethane industry. The origin of polyurethanes back to the beginning of World War 2 where it is was first developed as a replacement for rubber.

It was created during world war 2 . It replaced balsa wood because this polymer was cheaper, easier to shape, man made and abundant, it possessed great potential to be used in many practical applications. So, it is of no surprise that we find this polymer in many areas of our lines including: furniture, cushion, shoe soles, insulating materials, adhesives, and chairs. In 1936. Dr. Bayer invented P.U foam two components reactive have been there. Liquid systems have played a critical role in everyday industrial. 1940 Rigid foam first introduced for aircraft 1941 Adhesive between rubber, metal and glass 1948 First insulation application - a beer barrel 1949 Vulcanized rollable polyurethane rubber 1950 Moldable polyurethane was produced. 1952 A foam machine is installed in Germany. 1953 The first commercial production of a Polyurethane foam was began in the united states. This material was useful for foam insulation. 1953 Shoe soles - Synthetic leather 1954 Foam cushions

1956 More flexible, less expensive foams were introduced. 1958 Introduction of Spandex fiber 1960 The first injection moulding and thermoforming machine go into operation. 1960 Steel sandwich building panels 1966 Integral skin for armrests and shoe soles 1969 Automobile bumpers 1979 Spray building insulation 1985 Energy absorbing foams for passenger safety 1993 Thin wall medical hoses i.e. catheters 1995 Bicycle tires 2001 Automobile tires Over the year, improved polyurethane polymers have been developed including spandex fibers, polyurethane coatings and thermoplastic elastomers.

CHEMICALS INVOLVED IN P.U FOAM.
Polyurethanes, also known as polycarbonates, belong to a larger class of compounds called polymers. Polymers are macromolecules made up of smaller, repeating units known as monomers. Generally, they consist of a primary long chain

backbone molecule with attached side groups. Polyurethane are characterized by carbonate groups (-NHCO2) in their molecular backbone. Synthetic polymers, like polyurethane are produced by reacting monomers in a reaction vessel. In order to produce polyurethane, a step also known as condensation – reaction is performed. In this chemical reaction, the monomers that are present-contain reacting end groups. Specially , Disocynate (OCN-R-NCO) is reacted with a did (HO-R-OH). The first step of this reaction results in the chemical reaction results in the chemical linking of the two molecules leaving a reactive molecule (OH) on one side under reactive isougnate (NCO) on the other. These groups react further with other monomers to form a larger, longer molecule. This is a rapid process which yields high moleculer weight materials even at room temperature.

BUSINESS ENVIRONMENT
Since 1961 the industry has grown rapidly and tremendously research has shown that P.U.FOAM products are stable in the environment during use when they are properly dispose off P.U are readily handled by municipal waste handling processes. Length or incineration. Managers always have to perform their function in the organization. The system approach of managing suggests that an organization being a sun system of broader. Societal system has to work within the frame work provided by the society and in the various constituents. This constituents are combined to constitute environment for given organization environment includes all the conditions, circumstances and influences surroundings and effecting the total organization or any of its part environment can be defined as: “Environment consist of atoms and molecules, agglomotion of things in motion, alive of man and emotions of physical and social law, social ideas, norms of actions of force and resistance. There number is infinite and they are always present, they are always changing.” There are many forces in environment, which influence the working of the organization. There forces may be classified as economy legal, political, technological, cultural etc. There forces have an important effect in determining the resources available for the inputs, the most appropriate organizational process and the acceptability of organizational output. The organizational environment can broadly classify mainly in to two categories: • External Environment • Internal Environment

EXTERNAL ENVIRONMENT
External environment consists of those factors which lie outside the organization. This factor may be economical, geographical, technical, political etc. Change in the organization social value and many changes in the economy, changes in the resources availability and change in the market place and so on. Which of this external factor will have particular significant for a specific organization depends on circumstances surrounding that business. As the foam is an industrial product, we can relate the various environment factors in the following ways. They can be categorized as under: • ECONOMIC ENVIRONMENT As far as economic aspect is concerned the entrepreneur of the foam industry has to fight the tough competion. However, they are all together two kind of sector i.e organize sector and unorganized sector. The companies like hi life, Kurton, etc. can be included in the organized sector and the local companies are included into unorganized sector. If we further clarify then, very interestingly, the company can enjoy the NEW MARKET as well as the replacement market also. Any Foam user has to get his foam change within one and half year down the line from its purchase. The recent data suggests that the business is growing at the rate of 20% every year. • TECHNOLOGICAL ENVIRONMENT One of the most important forces shaping people’s lives is technology. The firm which moves with the latest technology cam excel their growth. Every new technology is a force for “ creative destruction”. Moreover, the innovating process always leads to the increase in the investment. Technological inventions are introduced for higher productivity, Lower cost and more revenues. Technology referes to some total of knowledge providing ways to do things. Organization should give constant consideration to the manner in which

innovation may affect their product and also to their internal operation efficiency. Now, let’s see that how can we related within foam. Previously only the cittern was known by the most of the customers. They required very high maintenance costs. The process was also not very much complicate. Moreover they were produced in the large size only. It was impossible to manufacture in the small size. However, Time is the only factors which can make the thing happen as well as possible. And the same can also be applied over here. With on invention of the foam the limitation of cottern has been eliminated. And of course it has very positive impact on the company as well as to the customer. Thus, technological innovation has created a tremendous impact in the life of foam.

• NATURAL ENVIRONMENT The deterioration of the natural environment is a major global concern. So, Any firm must try to produce it’s product with maximum efforts of minimizing the pollution and this should be taken care essential in the country like India where there is a already a higher amount of water, And noise pollution prevailing. It is a fact that production process of the foam does not create pollution. And hence, this problem does not arise in the factory. More over in the production process of foam, there are two main components i.e. as out of consumption, the ratio for both of the chemical includes 100:106. Moreover, there chemicals also causes very harmful effects to those who are working in the industry that is who are in the direct touch of it such as worker or labours. So, they should be given of gloves and special uniform in order to avoid the health related problems. And the liquid that leak inside the machine is hot and whenever it falls anybody part of the workers, it may effect more and it is considered to be very dangerous. Some workers may have allergic problem by foam. POLYURETHANE
AND

HEALTH

So many products and living environments today contain polyurethane products; it’s understandable to consider their potential health effects. Research has shown that polyurethane products are stable in the environment during use. When they are properly disposed of, polyurethanes are readily handled by municipal waste handling processes, landfills or incineration. There are also a number of means to recycle Polyurethane safely.

INTERNAL ENVIRONMENT
The Internal Environment relates to the Events occurring within organizational Structure, Capital Investment, and Sales Forecast etc. The basic Nature of this factor is that

they can be change by managerial actions dependent on the time requirement. Such change can be brought within a very short period of Time because any internal change is governed by external factor also. The internal environment of the organization has a major influence on the human performance through its impact on the individual motivation and job specification. ORGANIZATION STRUCTURE It creates the position and prescribes relationship among this position. Various Positions are occupied by individuals who perform managerial activities. There is very close relationship between organizational structure and planning process. The organization should choose that strategy which can be implemented by it’s structure unless there is the change in the SALES FORECAST Every organization would like to make it’s self so that it’s full capacity utilize and larger market share can captured. However, this is not possible and organization is required to forecast it’s sales at a given price. This sale forecast then become limiting factor on the planning process as the whole exercise of the planning is geared to this only.

FORMATION OF COMPANY
? Certificate of Incorporation. ? Memorandum of Association. ? Article of Association. ? Document to be filled to Registrar Company. ? PROCUREMENT OF I.S.I. MARK CERTIFICATE

CERTIFICATION OF INCORPORATION NO. -06-67280 OF 2006-07 I HEREBY CERTIFY THAT CAMPLAST POLYMER PVT. LTD. IS THIS DAY INCORPORATED UNDER THE COMPANY ACT, 1659 [NO.1 OF 1956] AND THAT THE COMPANY IS LIMITED. GIVEN UNDER MY HAND AT AHMEDABAD THIS FIRST DAY OF APRIL TWO THOUSAND AND SIX.

SD/REGISTRAR OF COMPANIES, GUJARAT.

THE COMPANIES ACT, 1956 COMPANY LIMITED BY SHARES MEMORANDOM OF ASSOCIATION OF CAMPLAST FOAM PVT. LTD.

1. LTD 2.

NAME CLAUSE The name of our company is CAMPLAST POLYMER PVT. REGISTERED OFFICE CLAUSE

The register office of the company will be situated at the below mentioned address: CAMPLAST FOAM PVT. LTD. GIDC VATWA. 3. CAPITAL clause The authorized, issued, subscribed and paid up capital of the company is Rs. 218.68 lakh Equity share of Rs. 10 each. 4. OBJECT CLAUSE The object clause has been divided into three categories as per company amendment act. Main Object: To carry on to business of foam manufacturing in India and else where as buyer, sellers, wholesalers, dealers, traders, suppliers, exporters, importers, factors, agent, distributor, marketing agent, stockiest of any branch and of all brands

and of all classes, kinds and types of goods related to foam industry. Incidental Object: • To acquired and takeover any business or undertaking carried on, upon or in connection with or without any land or building which the company may desire to acquire as aforesaid or become interested in and the whole or any of the assets and liabilities of such business or undertaking and to carry on the same or to dispose or remove or put an end thereto. • To train and get trained and/ or pay training for the employer both present and future, for and in connection with business of the company. • To enter into joint sector arrangement with any person, body or corporate whether in India of abroad for the business of the company. • To undertake and execute any contract for works for the business of the company. Other Object: • In future, we would like to go to backward and forward integration. Backward integration means we would like to produce product which are related to foam. Forward integration means we would open our own outlet to sell foam seats and backs. • We would like to setup a unit which would provide the service to different customers e.g. Annual Service. • We would every activity which would be directly or indirectly related to foam industry. 5. Liability Clause:

The liability of the members of the company will be limited up to nominal value of share subscribed by them. 6. Association Clause:We, whose names are mention below, are willing to form a private limited company and have obtained qualification shares as required by the Article of Association:-

NAME

No. of Equity shares taken by each sub. Each of Rs. 10

GARGEE CHAUHAN MANSURI FIRDOS MITHILESH KUMARI CHINTAN MODI ALKA PARMAR SUPASNA PARMAR ARTI PATEL MEHUL SAGAR SWETA VASAIYA JIGAR PAREKH
Place : Vatwa

6.55 6.55 6.55 6.55 6.55 6.55 6.55 6.55 6.55 6.55
65.57

ARTICLE OF ASSOCIATION THE COMPANY ACT 1956 COMPANY LIMITED BY SHARE ARTICLE OF ASSOCIATION OF CAMPLAST POLYMER PVT. LTD. PRIVATE COMPANY The co. is private co. and accordingly the following provisions shall have effect namely. • The no. of members for the time being of the co. (not including person who are in the employment of the co. and persons who having being formerly in the employment of the co.were members of the co. while in that employment ceased) is not to exceed 50, but where two or more person hold one or more in the co. jointly the shall for purpose of this paragraph be treated as a single member. • Any invitation to the public to subscribe for any share or debenture of the co. is hereby prohibited. • The right to transfer of the share of the co. shall be restricted in the manner and to the extent here in after appearing. SHARE CAPITAL The authorized share capital of the co. is 7,00,00,000 divided into equity share of Rs. 10 each. The capital of the co. shall be subjected to increase or decrease and the share being consolidated or subdivided in accordance with the regulation of the co. and the legislative provisions for the time being. POWER TO REDUCE SHARE CAPITAL:

The co. shall have the power to reduce share capital in the manner provided in the section 100 to 105 of the co. act, 1956 or any statutory modification thereof.

ONLY ABSOLUTE OWNERSHIP RECOGNISED: The co. shall not be bound to recognized or take notice of any interest or claim in or upon any share other than the ownership of the registered holder for the time being and the co. shall be entitled to treat such ownership as absolute not with standing to the contrary. RESTRICTION ON TRANSFER OF SHARE: As provided by the article, a share shall not be transferred to a person who is not a member so long as any member or other person selected by the directors as to whom it is desirable in the interest of the co. to admit to membership, can be found to purchase it as at the fair value borrowings. POWER TO BORROW Subject to the provision of section 292 of the co. Act, 1956, the board may from time to time as its description accept deposit from members either in advanced of calls or otherwise and generally from any source or raise for the purpose of the co., borrow or secure the payment of such sums as it think fit. PAYMENT OF BORROWING: The board may secured the repayment of money in such manner and upon such time and condition on all respect as it think fit and in particular by the issue of bonus share, preference share whether perpetual or redeemable, debenture or debenture stock or by creating any mortgage, charge or other security on the undertaking of the whole or any part of the property of the co. both present and future including its uncalled capital for the time being.

GUJARAT POLLUTION CONTROL BOARD CERTIFICATION: The unit would be eco- friendly and there will be no emission of effluent by the co. Yet it has to obtain permission from the Gujarat Pollution Control Board. It is available easily as unit is a non- polluting unit. OTHERS Being a manufacturing co. it will be governed by the following act: 1. 2. 3. 4. 5. 6. The The The The The The factory act, 1948. industrial dispute act, 1947. employees state insurance act, 1948. employees Provident fund act, 1952. payment of Gratuity act, 1972. payment of bonus act, 1965.

The provision of the above would be taken into consideration as and when need arise. We, the several people, whose names are subscribed, are desirous of being formed into a co. into the pursuance of these article of association and we respectively agree to take no. of share in the capital of the co. COST DETAIL FOR REGISTRATION PERTICULARS AMOUNT Registration fees: Registration fees on 11,26,000 Memorandum Registration fees on 3,200 article (4 forms of 200 each and other) AMOUNT

11,29,200

Stamp Duty Stamp duty on 4,20,650 memorandum Stamp duty on article 1,15,820 Memorandum of 2,000 article (100 Copies) Common seal 20,130 Share certificate Filling name Witness charge paid Other revised fees Form- 13 For inspection of document Form- 32 Appointment of director and charges of them [Section303(2)] Form- 1 Declaration of complains with requirement of the co. act- 1956[section-32 (2)] Form- 1A Application for availability of name Form- 18 Notice of situation/ charge of situation of registered office For copy of certificate of incorporation For application to the general Govt. under the co. act 1956 Certificate from Gujarat Pollution control board 500 500 1,000 500 500

5,36,470

22,130

2,000 500 500

500

500

500 500

500 500

1,200 2,800

1,200 2,800

Consultation charge Security fees

2,200 1,500 17,00,000

2,200 1,500 17,00,000

PROCDURMENT OF I.S.I. MARK CERTIFICATE BIS is the national regulatory authority for certification scheme. This scheme is regulated by BSI Act, 1986 and rules and regulation made under this Act. PROCEDURE
TO GIVE LICENSE

Procedure to get this license to use standard mark is as follows: 1) The manufacturers, who want to use the standard mark, have to apply in three copies of specified Form and pay specified fee. Form is available at Bureau office. 2) There should be different application for each product, categorized under certain rules and regulation. 3) As soon as BSI gets application, it makes arrangement for primary inspection of the factory to check the laboratory facilities and to see that how the quantity is implemented during the production process, sample item are taken for check, in independent laboratory to satisfy that items are according to the rules and regulation or not. The applier has to bare the expenses for the sample items as well as for laboratory test. All the information received during primary inspection and information got by BSI afterwards is kept confidential. 4) The regulation which is necessary for applier to get the license and top use standard mark and to regulate it direction that structure for testing and inspection is prepared by BSI and the firm is informed about that the rate of fees for quality mark.

5) The license to used standard mark is given only when… a) The applier has all the testing equipment for quality check. b) The sample is according to Indian rules and regulation. c) The applier gives his consent for testing and inspection scheme and fee for quality mark. 6) The producer becomes registered when all the all items are approved as being made according to Indian rules and regulation. Procedure to get this license to use standard mark is as follows: 7) The manufacturers, who want to use the standard mark, have to apply in three copies of specified Form and pay specified fee. Form is available at Bureau office. 8) There should be different application for each product, categorized under certain rules and regulation. 9) The license to used standard mark is given only when… a) The applier has all the testing equipment for quality check. b) The sample is according to Indian rules and regulation. 10) The producer becomes registered when all the all items are approved as being made according to Indian rules and regulation. FEE STRUCTURE: The applier has to pay the fees to BSI as follows: 1) Application fee for Rs. 1000 which is not refundable. 2) The expenses made on inspection in independent laboratory before giving license.

3) Annual license fee for Rs. 1000 per license. 4) Renewal application fee for Rs. 500 per application. When license is to be renewed. Fees for quality mark is determined and informed from time to time. THE FOLLOWING DOCUMENTS ARE REQUIRED TO BE FILLED TO REGISTRAR OF COMPANIES FORM-1 Declarance of companies I hereby declare that all the provisions for incorporation of CAMPLAST POLYMER PVT. LTD. Has been duly complied with.

Signature/-, Any Advocate FORM- 18 ADDRESS OF REGISTER OFFICE The CAMPLAST POLYMER PVT. LTD. Would have its required office at the following address. CAMPLAST POLYMER PVT. LTD. GIDC, VATWA. POWER OF ATTOERNY The CAMPLAST POLYMER PVT. LTD. Company would hereby authorize Mr. to make addition, subtraction of any document filled to Registrar Of Company. FORM-1A

Form- 1A has been by promoter with fees of Rs.500/- with three alternative names of the co. namely, 1. Reactive polymer Pvt. Ltd. 2. Techno foam Pvt. Ltd. 3. Camplast foam Pvt. Ltd.

MEMORANDUM OF ASSOCIATION THE MEMORANDUM OF Association of CAMPLAST FOAM PVT. LTD. Has been filled to registrar of co. with the registration fees of Rs.11,26,500. ARTICLE OF ASSOCIATION AND OTHER DOCUMENT ARTICLE OF ASSOCIATION HAS BEEN FILLED WITH the registration fees of Rs. 3200/- and other document has been filled to registrar of co. with the average fee of Rs. 500/- per document. FEE
STRUCTURER

The applier has to pay the fees to BSI as follows: 5) Application fee for Rs. 1000 which is not refundable. 6) The expenses made on inspection in independent laboratory before giving license. 7) Annual license fee for Rs. 1000 per license. 8) Renewal application fee for Rs. 500 per application. When license is to be renewed. Fees for quality mark is determined and informed from time to time. Fees for quality mark is determined and informed from time to time. Fees for quality mark is determined and informed from time to time. Fees for quality mark is determined and informed from time to time.

TECHNICAL

FEASIBILITY

How can we imagine tiredness without comfortable tools. After hardworking , every person wants to take rest in any matter. If it in car, in house entertainment resources etc. It’s providing by our product in the form of sofa, cushion, seats,. Car-seats etc. which are manufactured within P.U. Foam. So, this very explanatory situation indicates that in the modern era of globalization, without help of technology no company can survive any more. Nowadays with the emergence of the news and faster technology, new innovations and technological advancements take place every now and then. Every new day comes with some new technology and some new innovations. In our Complast foam pvt. Ltd. Co., for competing with the other companies, unit has to very well take case of its technology in order to meet the present emerging demands and modern requirements. Moreover, only the adoption of any technology at one time can’t help the company any longer to get survived until and unless it doesn’t implement it at the right time with the right intention and that too at the right place. To meet the competition and very importantly, to beat the competition, the companies have to upgrade their technology from timeto-time. The companies should be very innovative in implementing the modern technologies with proper case. In our Complast Foam Pvt ltd. Co. The technology has been very well adopted and we will consider it with consciousness that the technology has become the prime concern in each of the company. And our technical past has been mentioned as under. We can classified technology in two types. 1. Labour intensive technology i.e Manual technology 2. Capital intensive technology i.e Automatic technology The comparative analysis of the technology selection is as follows: LABOUR
AND

TIME

Manual technology depends on only manual work. So more labour cost is required in the manual technology, in the labour intensive technology less machines are required while in capital intensive technology all the functions are done automatically by the machines. As far as the time duration is concerned manual technology is very time consuming compared to automatic technology. QUALITY
PERFECTION

In automatic technology, all process is done on machines so that high quality standards can be achieved but this is not possible in manual technology. CAPACITY Automatic technology has more capacity power than the manual technology. From the comparative analysis of technology selection we have finally selected automatic technology as it is very suitable for our product.

PRODUCTION

Pu foam molde products are manufactured by mixing raw materials a polysyonate and discyonate to cure the raw materials which expand and research to fill their cavity. Then this raw material is put in he tank of foam batching machine i.e. Pu dispension machine in the ratio of 60:40. The adjustments are made according to the quantity put in it and the mixture first goes in the Foam is mixed in the water supply and the machine mixes it well and then this goes in the next tank and after that ,When the liquid comes out of machine, is taken in the container in which shape we want the foam sheets. And after 10-15 minutes the liquid becomes hard and gets the given shape. Then with the help of the cutting machines they are given shapes and are used to produce seats. There are many technologies for productions:LIQUID CARBON DIOXIDE (LCD) TECHNOLOGY The basic principle of LCD technology is the blending of CO 2 with other foam components under pressure prior to the initiation of the chemical reaction.

AUTO BATCH P U DISPENSION (SHOTS MACHINE) This blend is then released and, triggered by the decompression, releases the CO2, resulting in froth. This

froth further expands because of the CO2 released from the water/Polysyonate reaction. While the "wet end" (storage, metering and blending of chemicals) of the process requires considerable modifications to allow the storage and processing of liquefied/pressurised CO2, the "dry end" (conveyor) remains essentially unchanged. The use of CO 2 as a co-blowing agent requires resolution of a number of challenges including limited solubility in the PU chemical mixture, controlled decompression, and distribution of the unavoidable froth. Several approaches--ranging from preblending to co-blending--are offered.

AUTO

BATCH

P U DISPENSION-MIXTURE MACHINE

All LCD equipment manufacturers have developed patented technologies to manage these issues. Three distinct, proprietary technologies through four manufacturers are currently offered. LCD technology has proven to be commercially viable for a significant variety of foam grades in the 15-35 kg/m3 density range and applicability to densities as low as 10 kg/m 3 has been claimed. Each existing foam manufacturing system faces challenges specific to its equipment design and product range. Typical problems include achieving high hardness at low density, control of cell structure (pinholes), achievement of optimum block profile,

and producing foams with solid particles. Economically, the use of LCD offers large potential savings compared to any other technology based on a lower cost price and higher process efficiency. These advantages are to an extent negated by higher cost of other chemicals, energy and maintenance as well as license fees. In addition, a significant learning curve can be expected when introducing this technology.

Miscellaneous Utilities:-

POWER At Vatwa GIDC Ahmedabad district power facility is available hours from GEB (Gujarat electric Board). In our unit all the machines run through power. The power required for the proposed site is estimated. For taking power connection from GEB we have deposited Rs. 50000 WATER Water is very non-essential in the production of foam. Water is not much required in production process. But for general uses, the facility is provided by vatwa GIDC. FUEL Fuel is not required in all the machines. All the machines are electrical. COMMUNICATION With the present scenario of changing business environment, effective and uninterrupted communication is the key to all human activities keeping in view technological changes and speedy communication; we have installed various instruments like telephone, fax, computers etc. DRAINAGE We have installed water purifies for the disposal of chemical and acid water in our factory. And cost of the water purifier system is included in our project cost.

Location Analysis

To make the industry proceed faster and to make the business economically as well as socially viable as well as feasible, the very important aspect for that is none other than the selection of its location. I.e. the selection of its location decision plays a vital role in the better prospect for the growth and development of the business. We all are aware of that setting up an industry and deciding its location is a very important aspect in the economic analysis of any project. Location of plant or industry means a scientific choice of a region and specific site in the region where the business unit is to be started. When we take decision about the location of the unit it is for the life time. So we have to consider all the social, economical factors which are affecting the unit. We have chosen our location at ‘vatwa’ in Ahmedabad. Address:WHY
IN

GUJARAT?

Now-a-days, Gujarat has become the dream-land of the entrepreneur for establishing new units. The state of Gujarat has some of the country’s most dynamic enterpreneurs who are original in their thinking, fast place and extremely friendly, Gujarat is emerging as one of the most proffered location in the industry. WHY
IN

GIDC (VATWA)

Normally an entrepreneur establishing an industry would require a lot of time to construct factory building which would also cast quite a lot. As against this, GIDC, in its industrial estates, provides the entrepreneurs, ready to occupy factory sheds, to enable entrepreneur to set up the project envisaged within available resources, vatwa GIDC identifies location suitable for industrial development and arranges for infrastructure facilities, that one would normally look for.

GIDC industrial estate is equipped with essential infrastructural facilities like roads, drainage, water supply and street light. Then there are the supportive amenities and commercial facilities like Banking, telecommunication shopping complexes, canteens, schools, Dispensaries, etc. Criteria for selection of location The following criteria are considered while selecting the location. TRANSPORTATION FACILITIES The unit is located in ‘vatwa’. The transportation facilities at raw material and finished goods are provided by the truck and tempo owners from this location to any past of Gujarat at cheaper rates. So there is no occurrence of problem of transportation facilities. POWER
AND

FUEL

For the production power is taken from Gujarat electricity board at the rate of 4.7 per unit. The fuel is not so much required in making our product. WATER Water is not required in the production of foam. But for general uses, the facilities are provided by when ‘Vatwa” GIDC. MANPOWER:The Manpower is required for the production of PU foam is easily available from Ahmedabad at cheaper rate. DRAINAGE
SYSTEM

:-

GIDC provides sites for solid waste disposal and CETPS and influent disposal pipeline for disposal of liquid influent which can be collectively used.

TAXATION GIDC estates, one declare as notified area, are free from payment of local taxes and octroi. The notify area tax payable in such area is only for the maintenance and repair purpose and is very reasonable. SPACE PLANNING We decided to establish our industry in vatwa which is situated in Gujarat because there is scarcity of utilities like power, water etc. and Manpower is easily available at cheaper rate. So we purchased land of 4500 square ft in vatwa and segregate it in the following way: Total Area – 4500 Sq Mt Open Area – 1000 Sq Mt Construction Area – 3500 Sq Mt GIDC, being a government organization is transparent and fait in fixation of the prices of land. The prices so fixed are approved by all financial institutions for quick approval of Loans.

ORGANIZATION STRUCTURE
DIRCTORS

MANAGING DIRECTOR

FINANCE MANAGER

MARKETING MANAGER

G.M. WORKS

ACCOUNTAN T

SALES EXECUTIV ES

PRODUCTION MANAGER

PURCHASE MANAGER

CLERKS STORE KEEPER

TECHNICAL CHIEF ENGINEER SKILLED WORKERS

SUPER VISIOR

LABOURS

SALARY STRUCTURE Designation Person Salary Per month Salary Per Annum Total

• Administrative Personnel Managing director 1 Finance manager 1 Accountant 1 Clerk 2 Marketing 1 manager Sales Executive 6 Receptionist 1 Peon 2 Sweeper 2 Gate keeper 1 Total • Factory personnel G.M. works Purchase manager Production manager Chief Engineer Skilled worker Supervisor Store keeper Security Guard Total • Labour Production Packaging Total 1 1 1 1 3 2 1 1 0.40 0.20 0.08 0.05 0.20 0.08 0.03 0.015 0.005 0.01 4.8 2.4 0.96 0.60 2.4 0.96 0.36 0.18 0.06 0.12 4.8 2.4 0.96 1.2 2.4 5.76 0.36 0.36 0.12 0.12 17.76

0.25 0.20 0.20 0.15 0.06 0.08 0.04 0.015

3.00 2.4 2.4 1.8 0.72 0.96 0.36 0.18

3.00 2.4 2.4 1.8 2.16 1.92 0.36 0.18 14.34

10 3

0.04 0.04

0.48 0.48

4.80 1.44 6.24

Grand Total

38.34

JOB DESCRIPTION & JOB SPECIFICATION
Job description is the process by which an organization ensures that it ahs the right number and kind of people at the right place at right time capable of completing effectively and efficiently those task that will help the organization to achieve its overall objective. Job specification states the minimum acceptable qualification that the incumbent must possess to perform the job successfully Based on the information required through job application identifies the knowledge skill and abilities need to do the effectively. Now, the job description and job specification of each employee / person mentioned in organization chart is as follows.

[1]

MANAGING

DIRECTOR :- Managing Director : M.B.A : 35 and above : Appearance Smart, Ability : Sound and Stable. : Minimum 10 Yrs. : Good Communication Skill

Job TITLE Qualification Age Physical Health to manage the stress level. Mental Ability Work Experience Special Skills and Business acumen. JOB DESCRIPTION

To make the policies. Calling periodical meeting. Monitoring, implementation of policies and plans Handling emergency affairs.

To maintain good reputation of the company. Approve organizational chart. RESPONSIBILITY He is responsible for any organizational failures or inability to convert plans into the action. He is also responsible of making changes , digestible by the organizational environment and culture. Responsible for company over –all performance. 2) RECEPTIONIST:Job Title :- Receptionist Qualification :- Graduate with the fluency in English, Gujarati and Hindi. Age :- 27 and above Physical Health: - Smart and charming. Work Experience: - 1 year of experience in the related field. Special Skill: - Good Communication Skill and Business acumen. JOB DESCRIPTION:Reports to :- Managing director

FUNCTIONS ? To attend all the calls and the persons who visit. ? To fix-up the appointment as guided by the manager. ? To maintain all the records of meetings. RESPONSIBILITY >Responsible for any daily activity of meeting not recorded and non-performance. 3) FINANCE MANAGER:Job Title :- Finance Manager

Qualification Age Physical Health Mental Abilities Work Experience and Special Skill

:- M.B.A [Finance]/C.A/ CFA :- 30 and above :- Smart and Fit :- Good analytical Skill. :- Minimum 5 yr. Of experience in the same field and he must have sound knowledge of capital market must be capable Of analyzing different market situation. :- Good Communication Skill and Abilit to undertake the work From the subordinates

JOB DESCRIPTION:>To determine optimum capital structure and work towards its attainment. > To negotiate marketing, production and purchase budget and to prepare an annual Budget to achieve organizational financial goals. >He will raise fund for the company. > To allocate the funds in efficient and effective way so that he can maximize the wealth of the company. >To increase profitability of the business. >He should develop creative ideas for credit and payment policies. >To report to the management. RESPONSIBILITIES:>He is responsible for daily payment to creditors. >He has to maintain enough liquidity level. >Responsible for investments, returns, financial losses. >Responsible for financial plans.

4) ACCOUTANT:Job Title :- Accoutant Qualification :- C.A with sound computer knowledge.

Age Physical Health Mental Abilities Work Experience

:-28 and above :- Smart :- Sound :- Minimum 3 yrs.

JOB DESCRIPTION:Reports To :- Finance Manager FUNCTIONS ? To keep a record of purchase , sales, bad debts and credit period. ? To prepare daily vouchers, cash-books, statements of financial position. ? To keep track of debtors and send letters of remainder. ? To maintain all records and has to clear all legal formalities like income-tax, sale-tax. ? To remain in touch with finance manager.

RESPONSIBILITIES:>He is responsible to submit all the records and financial reports to finance manager. > To maintain records of administrative and banking transactions. 5) CLERK:Job Title :- Clerk Qualification :- B.Com. With sound computer knowledge. Age :- 25 and above Physical Health :- Smart and fit Mental abilities :- sound Work Experience: - Minimum 2 yrs.

JOB DESCRIPTION:-

Reports To : Finance Manager

FUNCTIONS:? To maintain all the records and files of the day-to-day requirements. >To follow the instructions given by the finance manager and the accountants. >To prepare MIS [Management Information System ]reports. > To prepare the salaries of the employees. RESPONSIBILITIES:>Responsible to submit all the records and financial reports to the finance Manager. >Responsible to submit necessary account related files to the accountant. >Responsible for any mistakes committed in making the salaries of the employees. 6) GENERAL MANAGER – WORKS Job Title : General Manager [Works] Qualification : B.E [Mechanical] with M.B.A. Age : 30 and above Physical Health : Smart and fit Mental Abilities : Good analytical Work Experience : Minimum 5 yrs. Of experience in the same field and he must have sound knowledge of capital market and must be capable Of analyzing different market situation. Special Skill : Good Communication Skill and ability to undertake the work From the subordinates. He must possess good leadership quality.

JOB DISCRIPTION : ? To achieve the production target in specified time period. ? To co-ordinate with marketing and finance department for smooth functioning of organization. ? To be aware of the latest innovations taking place in the similar industry regarding machines, models and process. ? Try to apply innovative methods. ? To decide optimum time and quality for the placement of an order. ? To have a control over the process and look out whether it is done efficiently or not. RESPONSIBLITIES: ? He is responsible for not achieving target within the specified time period. ? He would be responsible for implementing the effective production procedures. ? He would be responsible for the production capacities also.

MARKETING FEASIBILITY
Market research by definition is “A systematic design, collection, analysis and reporting of data and finding relevant to a specific marketing situation.” Along with the technological advancements and the innovations, the company must have a strong marketing dept. with the help of which it can market its product to the target segment and can very easily and rapidly earn the name and the fame for the same. In this far reaching equally competitive era of modernization each and every field requires strong potentiality and good marketing skill. And before entering into the market any company must analyze that how far it is feasible for it to get survived into the market. Market research is important from the view point that what customer are expecting from a product it may be anything like low price, extra ordinary quality etc. so, it is important to analyze this customer behavior. Our major reason for undertaking marketing research is to identify market opportunities. Ones the research is complete, we must measure and forecast the size, growth and profit potential for each market opportunity sales forecast are by finance to raise needed cash for investment and operation by manufacturing department establish capacity and output level by purchasing to acquire the right amount of supplier and by human resource to hire the needed number of workers.

VISION As our mission states that we builds the desires but our firm has a main vision that is the consumer satisfaction. We consider as central part of our industry.

OBJECTIVE OF MARKET SURVEY 1) To know the kind of environment required for the P.U foam industry. 2) To know the pricing structure service provided and marketing strategy competition. 3) To know the demand of P.U foam in different area. 4) To know the different types of foam. 5) To know the supply chain of manufacture. It includes the supply raw material to finish goods. This will provide us various alternatives and choices regarding different suppliers of raw material. 6) To know the type of foam which is more preferred in market and from our survey we found out that P.U foam have higher demand as compared to other type of foam. 7) To know the demand of various types of foam manufacturing in industry.

DEVELOPING THE RESEARCH PLAN Developing the research plan involves the decision regarding the data sources, research approaches, research instruments, sampling plan and contact methods. DATA SOURCE There are two types of data sources. 1) Primary data source. 2) Secondary data source

1) Primary data source The information gathered by an investigator for solving his problem are described as primary data. Our research for primary source consist of COMPANIES OWN RECORD:RECORD:We have visited various manufacturing units to get information. SURYA Industry Phase-4 , 3503 Nr. Saraswati Ice factory Vatwa. Reactive polymers ltd Plot no. 1396-97, Ankhi vavli road, Taluka:- Jambusar Bharuch- 392159

CONSUMERS AND BUYERS Sometimes buyers may not be the user of the product. Our product is also in same kind that we make the P.U foam, the buyers take it from us and transfer them into finished goods which are useful to the consumer. DEALERS AND DISTRIBUTORS These are buyers although not consumer and can give valuable indication regarding the consumer. We have conducted market survey of 20 authorized dealers and distributors of Ahmedabad. 2) SECONDERY DATA SOURCES The information which is already gathered by government institution and which is easily available is called secondary data. We have obtained information from government sources such as: >Gujarat Industrial Development Corporation.[GIDC] >Gujarat Chamber Of Commerce . >Industrial Development Bank of India. [IDBI] >State Bank Of India. [SBI] >Bank Of Baroda. [BOB] >Ahmedabad Management Association Library. >Index-B, Gandhinagar. > CMIE, Ahmedabad. RESEARCH INSTRUMENTS Marketing research has a choice of two main research instruments in collecting primary data. ? Questionnaire. ? Mechanical instrument.

In our research we have selected questionnaires as our research instrument. We have made questionnaire for dealers and distributors. CONTACT METHOD We have adopted personal interview method, which is most versatile method for our research. We have personally interviewed some dealers and distributors.

DELEAR’S ANALYSIS

• Product Length Product Length P.U.Foam Percentage 35 Rubber Foam 15 Coir Foam 25 U. Foam Others 10 15

Product Length
40 30 20 10 0 Percentage P.U.Foam Rubber Foam Coir Foam U. Foam Others

In the above diagram we have seen that the product length of the P.U. Foam is the highest 35% and U.Foam is the lowest 10%. The Reason is the quality conciousness of individual

• Most Saleable Brand Sweet Dream 30

Brand Sleepwell Sale(in%) 40

Kurton Duck Durian Others 15 5 10 0

Brand - Saleable
60 40 20 0 Sale(in %) Sleepwell Sweet Dream Kurton Duck Durian Others

Thus, From the above Diagram we can easily observe that the brand name plays vital role in the sales of any company’s product. So, for any company, it becomes a very crucial tast to create a good brand name in the form of the reputation by way of advertising or by good quality or by somewhat low price than the prevailing prices. With respect to present scenario, we found that sleepwell is the market leader with 40 %. And follow by sweet dream 30% and kurton 15% and the lowest brand is duck 5%.

• Product Demand

Product Demand

Mattresses Cushions Pillows 20 15 15

Back & Seats 30

Others 20

Product Demand
40 30 20 10 0 Demand Mattresses Cushions Pillows Back & Seats Others

Thus, the delear’s demand shows that first priority to the Back & Seats due to excess utilization of the Foam in the product than others. Which shows the 30% Back & Seats, 20% Mattresses, lowest are15% Cushions And 15% Pillows.

• Factors Affecting Dealer’s Preference Factors Percentage Quality 48 Price 28 Commission Demand Advertising Others 12 8 3 1

Delear's Preference
60 50 40 30 20 10 0 Percentage Quality Price Commision Demand Advertising Others

Thus, The Dealer’s preference shows that they would definitely give the first priority to the quality of Foam which shows 48% and then they will go for price which indicates 28% and there it would be follow by the commission being offered by the dealer, distributors in the market, demand situation for various foam and finally, the advertising campaign being undertake by the companies.

• Credit Period

Days Percentage

15 days 42

20 days 28

45 days 18

60 days 12

Credit Period
60 40 20 0 Percentage 15 days 20 days 45 days 60 days

In Above Diagram we have seen that the company would give the credit in the context of percentage. Such as For 15 days 20%, For 20 days 30%, For 45days 40%, For 60 days 10%.

• Reasons For Opening of an Outlet in the Particular Area

Easy Easy Reasons Transportation Accessibility Percentage 44 23

Number of competitors 19

Proximity to High-way 14

Reason For opening an outlet
Easy Transportation Easy Accesibility Number of competitors Percentage Proximity to Highway

60 40 20 0

Thus, the above chart itself denotes that most of dealers have opened their outlet due to the easy transportation facility. Second preference then goes to easy accessibility. Moreover, Any dealer at the time of setting up of any outlet do consider the availability of the competitors in that area itself and lastly nowadays they also consider the proximity to the highways also. Findings The Last step of Marketing research is to present the findings, that are pertinent to major marketing decisions facing management. 1. From our research we have found that our competitors are providing foam at quite higher rate but COMPLAST Pvt. Ltd. Will available in the market at lower price than the competitors. 2. By consulting dealers we came to know that competitors are spending very less amount on advertising so we will advertise our product in the best to increase sales. As Complast Pvt.Ltd. is in the introduction stage, it is necessary for to keep price medium and advertise hard to make brand preference.

4 P’S OF MARKETING
The marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives in the target market. We have to classify the set of marketing tools into four broad groups that we called 4 P’S of marketing. 1. 2. 3. 4. product price place promotion

• PRODUCT
Product can be offered to the market in exchange of money for consumption, use, owning or satisfying a want or need. Our main product is “ Seats and Backs.” CLASSIFICATION OF PRODUCT

OUR PRODUCT IS INDUSTRIAL PRODUCT, SO it is not to be sold directly to the use of consumer. PRODUCT LEVELS In planning its market offering, the marketer needs to think through five levels of product. Each level adds more customer’s value and the five constitute a “Customer Value hierarchy.” CORE BENEFIT • • • • BASIC PRODUCT EXPECTED PRODUCT AUGMNTED PRODUCT POTENTIAL PRODUCT

CORE BENEFIT The most fundamental level is the core benefit. It is the fundamental service or benefit that the customer is really buying. The core benefit of Foam is to give comfort to the customer. BASIC PRODUCT IN this level the marketer has to convert the core benefit into Basic or Generic product. Here the marketer has to put emphasis on satisfying the basic need of the customer. The basic product constitutes the Foam itself. EXPECTED PRODUCT At the third level, the marketer introduced an expected product, a set of attributes and condition buyers normally expect when they purchase the product. It is their minimum

expectation. The buyer can normally expect Foam that is seats and backs in good size, colour, softness, quality. AUGMENTED PRODUCT At the forth level marketer prepares an AUGMENTED product that exceeds customers expectation. The augmented product is built up in order to make it competitive and attractive. It offers the additional benefit. The augmented product of the Foam is light weight, washable, good shape and it will product itself from dust, germs, insects. It will did not harm the human being.

POTENTIAL PRODUCT At the fifth level stands the potential product encompasses all the possible Augmentation and transformation the product might under go in future. Here is where companies search for new ways to satisfy customers and distinguish their product. Here the innovation plays an important role. The Potential product for the Foam is give comfort in winter and cooling in summer. In monsoon it will give smelt less quality and not fold. PRODUCT DEPTH Different types of product like home product – sofa seats & backs, cushions, pillows, mouled, foam for sofas, bus seats, chairs etc. PRODUCT LINE DECISION

AN important area in product policy decisions is whether to manufacture & market one product or a line of product. Product lines means a group of product that are closely related either because they satisfy a class of need, or used together, or sold to the same customers groups, or marketed through the same types of outlets,

or fall within given price ranges. We have many product line of our co. that is cushion, pillows, seats & backs etc. use for automobile other than wheeler.

PRODUCT EVALUATION Feasibility of product: Our Company is a single product manufacturer at present weaving there by that we will be having only one product line. We will deal in bus seats and car seats Bus seats -–LUXURY - DELUX - STANDARD - ECONOMY - CREAMY Parameters All over the world there is a standard shape for all the foam that is used for making bus seats and car seats.As all the front counter are available in the rectangular shape only The different parameters such as height width,depth e.t.c. different dimensions.

DIMENSIONS Bus seats Luxury Deluxe Standard Economy Creamy height 4 4 4 3.5 5 width 21 21 21 21 21 depth 24 24 24 19 23

Bus seats Luxury Deluxe Standard Economy Creamy Feature:

height 20 20 20 20 20

width 21 21 21 19 18

depth 6 6 3.5 4 5

Following are the main features of foam 1 high resilience 2 high density 3extra bounce 4 super elastic 5 highly comfortable 6 durable & longlasting 7 available in many design 8 enduring quality

USES OF FOAM THE FIRST AND FOREMOST USE of foam is in the home products such as sofa seats and backs cousin car seats bus seats and bed and another type of moulded foam is also used in other various fields COMPOSITION The foam comprises of following chemicals 1 Polyisonate 2 Disicynate BRAND Our task is to establish the brand name in the every corner of Gujarat as our market is limited to Gujarat only. And here people prefer the branded products only. In addition to this it’s the buyer market and bargaining power lies at there part. Hence if they find customers would be satisfied with the foam that we produce by our company then and only then we will be considered to be successful player into the market moreover it’s a well known fact satisfied customer would bring ten more customers so if we would prove our quality to customers then by every word of mouth we will be getting more and more customers. Our one of the objectives would also be to establish the brand name in order to successfully compete with competitors. PRICE This is another imp. P’ of marketing mix which produces revenue comparing with other elements that produce cost. Pricing is a complex problem & no readymade formula could be suggested. Pricing in any firm means to achieve the overall objectives might be related to growth of market share profit etc. price also communicate to the market the companies intended value positioning of its product .

Traditionally speaking, price has operated as the major determinant or the major influencing factor of the buyer’s choice. Even this behavior prevails not only in the underdeveloped or the developing countries but also in the developed countries. So more or less price does matter for any buyer irrespective of the income level or the demographic factors. Depending on the objective the co. can set the prices. As far as “camplast” is concerned, it has the objective of the selling its products to the consumer at reasonable prices & offer good quality so it keep the prices in reasonable range. Our company’s pricing strategy will be “Medium price – High quality”. At the camplast pvt. Ltd. We will be following the going rate pricing method because we have set our price by taking in to consideration our competitors prices & hence, at the introduction stage this method can prove to be very powerful method as we are the new entrant in the mkt., the survival is more important than the profit. The concept of profit has changed due to changed in the definition of the selling price. “Cost + profit =selling price” Now, selling price – cost = profit. Hence the cost plays an important role in deciding the profit of the company.

PLACE
With the faster communication, transportation and financial flow, The world is rapidly shrinking, products developed in country are finding

Enthusiastic acceptance in other countries. Also, with the emergence of the Computer world it has become even more easier to market the product from one Place to another. Moreover, in this competitive era the co. has to make its products Available at the nearest place in order to make it convenient for the consumer. After all “Consumer is the king.” Of the market who is to purchase the product & To decide the market share. Therefore marketer should make the product available at As many places as possible so that it can easily attract the consumers and increase Its market share by way of selling it to them. We have considered certain elements while deciding location that is we have Considered both the present and future availability of inputs like land, labour, energy Raw material etc… Obviously, a Co. would like to be located in place where the Availability of input is cheap and reliable. We have chosen the land at vatwa (AMD) Because Ahmedabad is a Place where everything is available. Thus, the place of the product also plays a vital role in determining the sales Growth and turnover of the co. Hence, the product should be well designed & updated Continuously to face the competition as well as the changing demand of the consumers. (A) (B) Camplast Pvt. Ltd. Distribution Channel Compan y

Distribut or Retai ler

Consu mer

DISTRIBUTORLIST IN AHMEDABAD 1) Lalit Chopra Hindustan Sales Agency Arihant Building, Opp. Nani Hanuman pole, Rambevpir Chowk, Gheekanta, Ahmedabad: - 380 001 Ahmedabad Foam Center Preyes Society, Shapur Mill Compound, Shapur, Ahmedabad: - 380 001 Ashif Traders Pirmonammed Shah Road, Gheekanta, Ahmedabad: - 380 001 Bhakti Foam & Furnishing 2, Royal Chambers, Gheekanta Road, Ahmedabad: - 380 001

2)

3)

4)

5)

Mahavir Sales Corporation(Wholeseller) 1834, Kaiyalwala building, Tinbhatti, Delhi Chakla, Ahmedabad:-380 002 K. K Kumaran & Co. (Wholeseller) 11, Sundergopal Co, Ambawadi circle, Ahmedabad: - 380 006 L. P Chataiwala (Supplier) 3 Gates, Ahmedabad:-380 003 Century Mattresses Krishna Mansion, Kalupur, Ahmedabad:-380 002 DISTRIBUTOR IN INDIA Bombay Sales Corporation Ravi Chambers, Salapose Road, Ahmedabad: - 380 001

6)

7) 8)

• ?

• SUPPLIER IN INDIA Indian Exporter & Supplier Chinubhai Tower, Ashram Road, Ahmedabad: - 380 009

?

? Foam Home Tardeo Road, Bombay :- 400 034

?

Bombay Sales Corporation Survey No. 257, Saily, Umaskhi Road, Vapi, Silvasa.

?

PROMOTION

Promotion is a term taken from Latin word “Promover” that means Moving from one to one and to another. Company needs to develop its product through various promotion techniques. The promotion technique should always be adopted by keeping in to mind the target, market. buyers motive, market positioning, & market mix. However the organization can handle the promotion tools in different ways such as advertising, sales promotion, public relations, present selling and direct marketing. Now a day

due to technological innovations and advancements, the co can also take the help of telemarketing and internet also to promote their product. Our Company techniques 1. has adopted following promotion

Advertising :-

The word “Advert” explains that: A: Active Watch D: Develop Relations V: Velocity E: Estimable R: Responsible T: Timely According to the American marketing Association, “Add is any paid form of non personal presentation and promotion of ideas, goods, Or services by an identified” sponsor. Advertisement is used as an instrument to impress upon the Consumers the superiority of the product. There are two types of advertisements. A. Informative Advertisement :To inform about a new product B. Manipulative Advertisement :To create a psychological preference in favor of the Product being advertised. The aim of this is to create demand for the product As par as our promotion strategy is concerned, we Are going for extensive advertising our advertising committee Has made the five major decisions in developing an advertising Program known as “the five MS.” 1. MISSION :-

It consists of an advertising objective our desired objective. Our desired objective is to have a specific communication task and Achievement level to be accomplished with a specific audience in specific period of time. As our co. is new enterant in the market our main add. Aim is:a) awareness; b) c) To create consumer and distributor

To create a favorable Co. image; To encourage immediate sales;

2

Money :-

An organized plan has to be made out for expenditure of money on add. This is referred to as add. Budget or appropriation. In arriving at the want to be spent on add, our advertising committee has considered many variable as followsa) ? ? ? External Variableopulation or income trends; Economic situation Competitive behavior

(b) Internal Variable:We have considered certain imp. Aspects while deciding add. Budget such as stages in product and production life cycle, market share, consumer behavior, competition and clutter, advertising substitutability and availability. 3. Message:Advertising go through four step to develop the creative strategy. ? Message generation ? Message evalution and selection ? Message execution ? Social responsibility review:-

The message impact depends not only on what is said, but often more imp, on how it is said. And hence, the “message generation plays an imp. Role in the com’s image and reputation. For that matter, at Camplast Pvt. Ltd. We have made the message as “Feel the comfort, the smart generation choice, just for you and your loved ones, the camplast with real comfort.” 4. Media:By media advertisers communicate their message to likely customers or prospects with a view to influencing them in terms of advertising objective. we have found out through our survey that there are many local manufacturers in the market but they do not reach national level because of luck of extensive advertising. Our advertising media consist of following types.

Advertising

Print Media News paper Magazine

Visual Media Television Hoardings

Audio Media Radio mirchi Akashvani

Print Media Print Media is one of the most effective ways of add. We have chosen the following media vehicles.
•

? News paper:News paper is the most popular form of advertising in India. We will advertise in economic times, times of India, Divya Bhaskar.

NAME OF PAPER Economic Times Times of India Divya Bhaskar Total 322800 ?

RATE PER PAGE 2600 1800 800 Magazine:-

TOTAL P.A

109200 108000 105600

NAME OF MAGAZINE Friends Forever Guideline Life Style 168000 Total 2000 3500

RATE PER PAGE TOTAL P.A 2500 120000 96000 384000

WEB ADVERTISING We are providing advertisements on internet also . The cost of it is Rs.388200

OUTDOOR

ADVERTISING

It will be realized that print add. Is generally read when the readers are indoors. As against this, there are other media which are noticed by a person when he is outdoors. This includes. Posters:Whenever we go to buy particular product, the posters in the retail shop influence us. Thus, posters would contribute effectively in sales of foam. We will providing posters to all retail shops whenever we realease a new title. The cost of printing a poster comes to Rs. 200, so, the total cost will be Rs. 150000

Advertising Literature:It constitutes the most selective of all forms of media. Longer message can be sent at a relatively lower cost. We will provide leaflets, catalogues, letters, and brochures. The advertiser generally has greater control over this medium than in case of others. The total cost for this is Rs. 4 00000.

•

Visual Media:-

Television Television in resent survey said that television Media proved to be one of the most significant and efficient media among others. In the first year more emphasis will be given to the local channels because our target is to capture the regional market first. Extensive reach all over the world is also one of the imps. Feature of television.

Our annual advertisement budget on television will be approximately Rs. 3,66,0000. Cable Network We will be giving advertisement in the SITI cable and INCABLE net of each city of Gujarat, wherever we have the distributors; it will be shown as caption and will appear thrice in a week. The cost of add per day amount to Rs. 8000 for CITI Channel and Rs. 100000 for INCABLE net. Thus annually the total cost will be Rs. 2808000. Hoardings Whenever we pass by roads we see hoardings which influence us. The cost of hoarding comes to Rs. 10,000 each. We add one hoarding in one week so annually the cost would be 480000. Outdoor Advertising It will be realized that print add. Is generally read when the readers are indoors. As against this, there are other media which are noticed by a person when he is outdoors. This includes. Posters:Whenever we go to buy particular product, the posters in the retail shop influence us. Thus, posters would contribute effectively in sales of foam. We will providing posters to all retail shops whenever we realease a new title. The cost of printing a poster comes to Rs. 200, so, the total cost will be Rs. 25000.

Vehicular Advertising:-

This constitutes an excellent form of reminder advertising. They generally have a long life and in that sense have a repetitive effect. We will providing knowledge and benefit of using foam products, on public transportation vehicles like bus etc.. The total cost of this is 4, 00,000. Advertising Literature:It constitutes the most selective of all forms of media. Longer message can be sent at a relatively lower cost. We will provide leaflets, catalogues, letters, and brochures. The advertiser generally has greater control over this medium than in case of others. The total cost for this is Rs. 80,000. 5. Measurement:-

This is the one of the imp. M of advertisement which evaluate effectiveness of advertise. Our sales force will be in direct touch with the end users. i.e. Other manufacturers, dealers and distributors and hence we definitely come to know how effectively it works. For that matter, our measurement will base on “SALESEFFECTIVE REASEARCH METHOD.” We will try to capture higher amt of market share by providing high quality at medium price. Formula for measuring sales impact of advertising. Share of Expenditur e Share of voice Share mind heart of and

Share market NOTE:-

of

Because our product is not related to service marketing we discussed only 4 p’s of marketing From the above discussion about the 4 p’s of marketing mix, Robert Lauterborn suggested that the seller 4 ps correspond to the 4 cs of consumer. We can also say that these 4 p’s of marketing of the seller correspond to the seller correspond to the 4 A’s of the consumer. FOUR P’S Product Price Place Promotion • FOUR C’S FOUR A’S

Customer salary Acceptance Customer cost Affordability Convenience Awareness Communication Availability Physical Distribution:-

Distribution is integral part of marketing. Distribution may be defined as an operation, or a series of operations, which physically bring goods manufactured or produced by any particular manufacturer in to the final consumer to user. Its functions are to distribute or sub-divide the total product of a manufacturer on a geographical basis to various specific mk (1) Physical Flow:Suppliers of Raw Material

Manufacturer

Distributor

Dealer

Particular Carriage Inward Repairs & maintenance Factory Insurance Office Insurance Advertise expenditure Municipality Taxes Excise Duty Sales Tax Tax Provison Surcharge Education Cess Interest on capital Interest On Loan Transfer to General Reserve

200607 1.00% 1.00% 1.50% 2.00% 1.50% 3.00% 8.00% 7.00% 35.00% 2.50% 2.00% 9.00% 12.00% 100.00 %

200708 1.00% 1.00% 1.50% 2.00% 1.50% 3.00% 8.00% 7.00% 35.00% 2.50% 2.00% 9.00% 12.00% 100.00 %

200809 1.00% 1.50% 1.50% 2.00% 1.00% 3.00% 8.00% 7.00% 35.00% 2.50% 2.00% 9.00% 12.00% 100.00 %

200910 1.00% 2.00% 1.50% 2.00% 1.00% 3.00% 8.00% 7.00% 35.00% 2.50% 2.00% 9.00% 12.00% 100.00 %

201011 1.00% 2.50% 1.50% 2.00% 1.00% 3.00% 8.00% 7.00% 35.00% 2.50% 2.00% 9.00% 12.00% 100.00 %

ASSUMPTION SHEET

NO. OF DAYS
Raw material Finished goods Debtors Creditors Deferred OverHead Total no of working days in a year 15 5 15 30 10 300 15 5 15 30 10 300 15 5 15 30 10 300 15 5 15 30 10 300 15 5 15 30 10 300

COST OF PROJECT
Particulars 1 2 3 4 5 6 7 8 Land Building Plant and Machinery Technical Know-how Miscellaneous Fixed Assets Office Equipment Preliminary Expenses Preoperative Expenses Cost of project 9 Working Capital Margin Money Total (Amount in Lakh) Amount 36.00 75.79 74.00 6.00 1.07 2.08 17.00 0.85 212.79 1.73 214.51

10

Contingency Money(2% Of Total) Total Cost Of Project

4.29 218.80

MEANS OF FINANCE
Amt. in lakh Bank Loan (70% of total cost of project) Owner's Fund
TOTAL 153.16 65.64 218.80

ANNEXURE
COST OF LAND
S.No . Description of land Area in Rs Amount (In Rs.)

sq.meter (per s sq.meter) 1 GIDC, Vatwa, Ahmedabad Constructed Land: Factory Godowns Administrative Office Site Developed Open space Total

2000 500 1000 110 890 4500

800 800 800 800 800 . 800

1600000 400000 800000 88000 712000 360000 0

SITE DEVELOPMENT COST
S.No . Description of land Area in Rs Amount

sq.meter s 1 2 3 Watchman's cabin Main Gate Parking Total 80 110 30

(per sq.meter ) 500

(In Rs.)

15000 20000

50

4000 39000

BUILDING COST
S.No . Description of land Area in sq.meter s 1 2 3 Factory Buildings Godowns Administrative Office Total Architect's Fees @ 4% Total 2000 500 1000 Rs (per sq.meter) 2000 1500 2500 Amount (In Rs.) 4000000 750000 2500000 7250000 290000 7540000

4

3500

PLANT & MACHINERY
S.No . Particulars Quantit y Price (per unit) 1 2 P.U.Dispention Machine Dyes Total 1 45 6500000 20000 Total Cost (In Rs.) 6500000 900000 7400000

TECHNICAL KNOW-HOW
S.No . Particular Cost

1

2 3

9000*3*14 [RS.9000 per day to 3 TechnicalEngineer for 14 Days] Air Ticket Hotel Accomodation and Transportation Total

378000

120000 102000 600000

MISCELLANEOUS FIXED ASSETS
S.No . Description Unit Rate Total Cost (In Rs.) 30000 15000 15000 20000 20000 4000 2000 500 106500

1 2 3 4 5 6 7 8

Sofa set Revolved chair Comfort chair Conference Room-Table Cabin Table Cupboard Plastic Chair Dustbin Total

2 10 15 1 8 1 8 5

15000 1500 1000 20000 2500 4000 250 100

OFFICE EQUIPMENT
S.No . Description Unit Rate Total Cost (In Rs.) 100000 9000

1 2

Computer Printer

5 1

20000 9000

3 4 5 6 7 8 9 10

Telephone Fax Machine Air Conditioners Water Purifier & cooler Water motor Lights Ceiling Fans Exhaust Fan Total

6 1 1 1 1 16 15 4

500 10000 25000 25000 8000 250 1200 1500

3000 10000 25000 25000 8000 4000 18000 6000 208000

PRELIMINARY EXPENSES
S.No . A 1 2

PERTICULARS Registration fees: Registration fees on Memorandum Registration fees on article (4 forms of 200 each and other)

AMOUNT 1126000 3,200

AMOUNT

1,129,200
B 1 2

Stamp Duty Stamp duty on memorandum Stamp duty on article Memorandum of article (100 Copies) Common seal Share certificate Filling name Witness charge paid Other revised fees Form- 13

420650 115820 536470 2,000 20,130 500 500 1,000 500 22,130

3 4 5 6 7 C 1

2000

2

D 1

For inspection of document Form- 32 Appointment of director and charges of them [Section303(2)] Form- 1 Declaration of complains with requirement of the co. act1956[section-32 (2)] Form- 1A Application for availability of name Form- 18 Notice of situation/ charge of situation of registered office For copy of certificate of incorporation For application to the general Govt. under the co. act 1956 Certificate from Gujarat Pollution control board Consultation charge Security fees Total

500

1000

500

2

500

3

500

1,200 2,800 2,200 1,500

4 5 6 7

9,200 1700000

PREOPERATIVE CHARGES
S.No . Description Total Cost (In Rs.) 40000

1 2

A.E.C.(Three phase) Electricity Connection Charges

20000

3 4 5 6

Plumbing Over head Water tank Fire safty alarm system Drainage System Total

4000 6000 1200 14000 85200

CALCULATION OF WORKING CAPITAL
(Amount in Lakh)

Particulars CURRENT ASSETS Raw material requirement W.I.P.requirement Finished Goods requirement Debtors Requirement Cash Balance

Day s

2006 -07 17.68 0 6.86 19.45 1.00 44.9 9

2007 -08 22.10 0 8.31 23.79 1.00 55.2 0

2008 -09 26.12 0 9.65 27.44 1.50 64.7 0

200910 33.41 0 12.10 34.25 2.00

201011 41.51 0 14.82 41.88 3.00

15 0 5 15

TOTAL CURRENT ASSETS

81.76 101.21

CURRENT LIABILITIES Creditors Required 30 36.75 44.10 52.09 66.85 82.96

Deferred Overheads

10

2.49

2.50

2.45

2.55

2.67

TOTAL WORKING CAPITAL

5.76

8.60

10.1 6

12.35

15.58

STATEMENT SHOWING COMPUTATIONOF TAX LIBILITY

(Amt. in lakh)

Particular Profit before Tax Tax Payable @ 35% Add: surcharge 2.5% of Tax) Add: Education Cess( @ 2% of Tax & Surcharge) NET TAX PAYABLE PROFIT AFTER TAX

200607 47.192 8 16.5175 0.4129 16.930 4 0.3386 17.269 0 29.923 8

200708 67.593 2 23.6576 0.5914 24.249 1 0.4850 24.734 0 42.859 1

200809 78.805 4 27.5819 0.6895 28.271 4 0.5654 28.836 9 49.968 5

2009-10 98.7031 34.5461 0.8637 35.4097 0.7082 36.1179 62.5852

2010-11 121.721 0 42.6024 1.0651 43.6674 0.8733 44.5408 77.1802

ELECTRICITY CONSUMPTION
( Amt. in Lakh)

PARTICULAR FACTORY roduction E.U. per Ton
Total E.U. consumed

UNI T Ton
Unit Unit Amt. Amt.

200607 315.00
291.43 91800.00 4.70 4.31 0.16 4.48

200708 360.00
291.43 104914.2 9 4.70 4.93 0.16 5.09

200809 405.00
291.43 118028.5 7 4.70 5.55 0.16 5.71

200910 495.00
291.43 144257.1 4 4.70 6.78 0.16 6.94

201011 585.00
291.43 170485.7 1 4.70 8.01 0.16 8.17

E.U. Rate
ELE.Consumption

OFFICE :TOTAL

INVENTORY CALCULATION
• RAW MATERIAL CONSUMPTION IN TON
Amt. in lakh

Particulars

Unit

2006-07

2007-08 360.00 240.00 160.00 400.00

2008-09 405.00 270.00 180.00 450.00

2009-10 495.00 330.00 220.00 550.00

2010-11 585.00 390.00 260.00 650.00

315.00 Production Ton Raw Material Consumed Polyisonate Ton 210.00 Disocynate Ton 140.00 Total Raw Material 350.00 Consumed Ton Wastage in Raw Material Ton 35.00

40.00

45.00

55.00

65.00

Price of Raw Material per Ton 0.90 Polyisonate Amt. 1.15 Disocynate Amt. Op. Stock of Raw Material 0.00 Polyisonate Ton 0.00 Disocynate Ton Total Op.Stock of 0.00 RawMaterial Ton Purchases Polyisonate Disocynate Total Purchases

0.95 1.21

0.99 1.27

1.04 1.33

1.09 1.40

10.50 7.00 17.50

12.00 8.00 20.00

13.50 9.00 22.50

16.50 11.00 27.50

Ton Ton Ton

220.50 147.00 367.50

252.00 168.00 420.00

283.50 189.00 472.50

346.50 231.00 577.50

409.50 273.00 682.50

Cl. Stock of Raw Polyisonate Disocynate Total Cl. Stock of Raw Material

Material 10.50 Ton 7.00 Ton 17.50 Ton

12.00 8.00 20.00

13.50 9.00 22.50

16.50 11.00 27.50

19.50 13.00 32.50

RAW MATERIAL CONSUMPTION REALISATION
(Amt. in lakh)

Particulars

2006-07

2007-08

2008-09

2009-10

2010-11

RAW MATERIAL CONSUMPTION Op. stock of Row Material Polyisonate 0.00 Disocynate 0.00 Total op. stock of Raw material 0.00 Purchasesolyisonate Disocynate Total Purchases Add:- Expenceses Related to purchases Carriage Inward(1% Of Purchase) Less:-Closing Stock Polyisonate Disocynate Total Cost of R.M. Consumed

9.45 8.05 17.50

11.34 9.66 21.00

13.40 11.41 24.81

17.19 14.64 31.83

198.45 169.05 367.50

238.14 202.86 441.00

281.30 239.63 520.93

361.01 307.52 668.53

447.97 381.61 829.58

3.68

4.41

5.21

6.69

8.30

9.45 8.05 17.50

11.34 9.66 21.00

13.40 11.41 24.81

17.19 14.64 31.83

21.33 18.17 39.50

353.68

441.91

522.33

668.19

830.21

PRODUCT WISE RAW MATERIAL CONSUMED
YEAR:- 200607 PRODUCTION IN TON:315

Amt. in lakh

PARTICULA R

STANDAR D

ECONOM Y

LUXUR Y

DELUX E

CREAM Y

TOTAL

Raw Material Ratio Polyisonate 85 Disocynate 15 Raw Materials Consumption Op. stock of Row Material Polyisonate 0.00 Disocynate 0.00 Total op. stock of Raw material 0.00 Purchasesolyisonate Disocynate Total Purchases 56.23 12.68 68.91

70 30

70 30

40 60

35 65

60 40

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00

0.00

0.00

0.00

0.00

46.31 25.36 71.66

46.31 25.36 71.66

26.46 50.72 77.18

23.15 54.94 78.09

198.4 5 169.0 5 367.5 0

Add:- Exp.Related to purchases Carriage Inward(1%) 0.69 Less:-Closing Stock Polyisonate 2.68 Disocynate 0.60 Total 3.28 Cost of R.M. Consumed

0.72

0.72

0.77

0.78

3.68

2.21 1.21 3.41

2.21 1.21 3.41

1.26 2.42 3.68

1.10 2.62 3.72

9.45 8.05 17.50

66.31

68.97

68.97

74.27

75.16

353.6 8

STATEMENT OF CAPACITY, PRODUCTION AND SALES

(Amt. in lakh)

Particulars Installed Capacity Standard (Ton) Economy (Ton) Luxury (Ton) Deluxe (Ton) Creamy (Ton) Total Installed Capacity Capacity Utilisation Standard Economy Luxury Deluxe Creamy Total Capacity Utilisation Production Standard (Ton) Economy (Ton) Luxury (Ton) Deluxe (Ton) Creamy (Ton) Total Production Opening Stock of FG Standard (Ton) Economy (Ton) Luxury (Ton) Deluxe (Ton) Creamy (Ton) Total Opening Stock of FG Closing Stock of FG Standard (Ton) Economy (Ton) Luxury (Ton) Deluxe (Ton)

200607 180 180 180 180 180 900

200708 180 180 180 180 180 900

200809 180 180 180 180 180 900

200910 180 180 180 180 180 900

2010-11 180 180 180 180 180 900

50.00% 45.00% 35.00% 30.00% 15.00% 35.00%

57.14% 51.43% 40.00% 34.29% 17.14% 40.00%

64.29% 57.86% 45.00% 38.57% 19.29% 45.00%

78.57% 70.71% 55.00% 47.14% 23.57% 55.00%

92.86% 83.57% 65.00% 55.71% 27.86% 65.00%

90.00 81.00 63.00 54.00 27.00 315.00

102.86 92.57 72.00 61.71 30.86 360.00

115.71 104.14 81.00 69.43 34.71 405.00

141.43 127.29 99.00 84.86 42.43 495.00

167.14 150.43 117.00 100.29 50.14 585.00

0.00 0.00 0.00 0.00 0.00 0.00

1.50 1.35 1.05 0.90 0.45 5.25

1.71 1.54 1.20 1.03 0.51 6.00

1.93 1.74 1.35 1.16 0.58 6.75

2.36 2.12 1.65 1.41 0.71 8.25

1.50 1.35 1.05 0.90

1.71 1.54 1.20 1.03

1.93 1.74 1.35 1.16

2.36 2.12 1.65 1.41

2.79 2.51 1.95 1.67

Creamy (Ton) Total Closing Stock of FG Sales in Qty. Standard (Ton) Economy (Ton) Luxury (Ton) Deluxe (Ton) Creamy (Ton) Total sales in Qty Cost of Sale Standard Economy Luxury Deluxe Creamy Total Cost of Sale Sales Realisation Standard Economy Luxury Deluxe Creamy Total Sales Realisation Profit Realisation Standard Economy Luxury Deluxe Creamy Total Profit Realisation

0.45 5.25

0.51 6.00

0.58 6.75

0.71 8.25

0.84 9.75

88.50 79.65 61.95 53.10 26.55 309.75

101.14 91.03 70.80 60.69 30.34 354.00

113.79 102.41 79.65 68.27 34.14 398.25

139.07 125.16 97.35 83.44 41.72 486.75

164.36 147.92 115.05 98.61 49.31 575.25

138.47 124.62 96.93 83.08 41.54 484.65

169.41 152.47 118.59 101.65 50.82 592.93

195.38 175.85 136.77 117.23 58.62 683.84

243.89 219.50 170.72 146.33 73.17 853.62

298.22 268.39 208.75 178.93 89.46 1043.76

148.17 133.35 103.72 88.90 44.45 518.58

181.27 163.14 126.89 108.76 54.38 634.44

209.06 188.15 146.34 125.44 62.72 731.71

260.96 234.87 182.67 156.58 78.29 913.37

319.09 287.18 223.36 191.45 95.73 1116.82

9.69 8.72 6.79 5.82 2.91 33.93

11.86 10.67 8.30 7.12 3.56 41.51

13.68 12.31 9.57 8.21 4.10 47.87

17.07 15.37 11.95 10.24 5.12 59.75

20.88 18.79 14.61 12.53 6.26 73.06

COST SHEET
Particular 200607 2007-08 2008-09 Opning Stock of Raw Material 0.00 Raw Materials Consumed Add:- Purchases Polyisonate 198.45 Disocynate 169.05 Total Purchases 367.50 Add:- Expenceses Related to purchases Carriage Inward(1% Of Purchase) 3.68 Less:-Cl. Stock of R.M. Polyisonate Disocynate Total Closing Stock of Raw Material COST OF RAW MATERIAL CONSUMED PRIME COST Add:- Factory O.H. FACTORY COST Add:-Administrative Overhead COST OF PRODUCTION Add:- Opning stock of F.G. Less:-closing Stock of F.G. COST OF GOODS SOLD Add:-Selling & Dist over head COST OF SALE Add:- Profit

(Amt. in lakh) 2009-10 2010-11

17.50

21.00

24.81

31.83

238.14 202.86 441.00

281.30 239.63 520.93

361.01 307.52 668.53

447.97 381.61 829.58

4.41

5.21

6.69

8.30

9.45 8.05 17.50

11.34 9.66 21.00

13.40 11.41 24.81

17.19 14.64 31.83

21.33 18.17 39.50

353.68 353.68 46.08 399.75

441.91 441.91 44.22 486.13

522.33 522.33 43.37 565.70

668.19 668.19 43.70 711.89

830.21 830.21 44.50 874.71

12.09 411.85 0.00 6.86 404.98

12.63 498.76 6.86 8.31 497.31

13.22 578.92 8.31 9.65 577.58

13.83 725.71 9.65 12.10 723.27

14.47 889.18 12.10 14.82 886.46

16.45 421.44 63.22 484.65 33.93

18.28 515.60 77.34 592.93 41.51

17.07 594.65 89.20 683.84 47.87

19.01 742.28 111.34 853.62 59.75

21.16 907.61 136.14 1043.76 73.06

Add:- Sales tax

Total sales

COST SHEET PER UNITS

518.58

634.44

731.71

913.37

1116.82

Particular RAW MATERIAL CONSUMED Op. stock of Row Material Purchases Polyisonate Disocynate Add:- Direct Exps. Carriage Inward Less:-Closing Stock Polyisonate Disocynate Total R.M. Consumed Op. stock of WIP Cl. stock of WIP Prime cost Factory overheads Factory Cost Office overheads Cost of production Add:Less:OP. Stock of F.G. Closing stock of F.G. Cost of goods sold

Production in Ton: - 315.00 Sales in Ton: - 309.75 Year:-2006-07 Amt. in lakh Cost per Amt. Amt. unit 0.00 198.45 169.05 367.50 3.68 9.45 8.05 17.50 353.68 0 0 1.12 0.00 0.00

0.00 353.68 46.08 399.75 12.09 411.85 0.00 6.86 404.98 16.45 421.44 63.22 484.65 33.93 518.58

0.00 1.12 0.15 1.27 0.04 1.31

1.31 0.05 1.36 0.20 1.56 0.11 1.67

Selling & Dist overhead Cost of sales Add: - Profit Add:-sales tax Total sales

PRODUCT WISE COST PER UNIT
STANDARD
Production in Units :-90.00 Sales in Ton:- 88.50 Amt. in lakh Amoun Amount t Cost

Particular RAW MATERIAL CONSUMED Op. stock of Row Material Purchases Polyisonate Disocynate Total Add:- Direct Exps. Carriage Inward Less:-Closing Stock Polyisonate Disocynate Total R.M. Consumed Op. stock of WIP Cl. stock of WIP Prime cost Factory overheads Factory Cost Office overheads Cost of production Add:- OP. Stock of F.G. Less:- Closing stock of F.G. Cost of goods sold Selling & Dist overhead Cost of sales

0.00 56.23 12.68 68.91 0.69 2.68 0.60 3.28

0.00

0.00

66.31 0.00 0.00

0.74

0.00 66.31 13.16 79.48 3.46 82.93 0.00 1.38 81.55 4.70 86.25

0.00 0.74 0.15 0.88 0.04 0.92

0.92 0.05 0.97

Add: - Profit Add: Sales Tax Total sales

12.94 99.19 6.94 106.14

0.15 1.12 0.08 1.20

ECONOMY
Production in Units :- 81.00 Sales in Ton:- 79.65 Amt. in lakh Amoun Amount t cost

Particular RAW MATERIAL CONSUMED Op. stock of Row Material Purchases Polyisonate Disocynate Total Add:- Direct Exps. Carriage Inward Less:-Closing Stock Polyisonate Disocynate Total R.M. Consumed Op. stock of WIP Cl. stock of WIP Prime cost Factory overheads Factory Cost Office overheads Cost of production Add:- OP. Stock of F.G. Less:- Closing stock of F.G. Cost of goods sold Selling & Dist overhead

0.00 46.31 25.36 71.66 0.72

0.00

0.00

2.21 1.21 3.41 68.97 0.00 0.00 0.85

0.00 68.97 11.85 80.82 3.11 83.92 0.00 1.40 82.53 4.23

0.00 0.85 0.15 1.00 0.04 1.04

1.04 0.05

Cost of sales Add: - Profit Add: Sales Tax Total sales

86.76 13.01 99.77 6.98 106.76

1.09 0.16 1.25 0.09 1.34

Luxury
Production in Units :- 63.00 Sales in Ton:- 61.95 Amt. in lakh Amoun Amount t cost

Particular RAW MATERIAL CONSUMED Op. stock of Row Material Purchases Polyisonate Disocynate Total Add:- Direct Exps. Carriage Inward Less:-Closing Stock Polyisonate Disocynate Total R.M. Consumed Op. stock of WIP Cl. stock of WIP Prime cost Factory overheads Factory Cost Office overheads Cost of production Add:- OP. Stock of F.G. Less:- Closing stock of F.G. Cost of goods sold Selling & Dist overhead

0.00 46.31 25.36 71.66 0.72 2.21 1.21 3.41

0.00

0.00

68.97 0.00 0.00

1.09

0.00 68.97 9.22 78.18 2.42 80.60 0.00 1.34 79.26 3.29

0.00 1.09 0.15 1.24 0.04 1.28

1.28 0.05

Cost of sales Add: - Profit Add: Sales Tax Total sales

82.55 12.38 94.93 6.65 101.58

1.33 0.20 1.53 0.11 1.64

DELUXE
Production in Units :- 54.00 S ales in Ton:- 53.10 Amt. in lakh Amoun Amount t cost

Particular RAW MATERIAL CONSUMED Op. stock of Row Material Purchases Polyisonate Disocynate Total Add:- Direct Exps. Carriage Inward Less:-Closing Stock Polyisonate Disocynate Total R.M. Consumed Op. stock of WIP Cl. stock of WIP Prime cost Factory overheads Factory Cost Office overheads Cost of production Add:- OP. Stock of F.G. Less:- Closing stock of F.G. Cost of goods sold

0.00 26.46 50.72 77.18 0.77 1.26 2.42 3.68

0.00

0.00

74.27 0.00 0.00

1.38

0.00 74.27 7.90 82.17 2.07 84.24 0.00 1.40 82.84

0.00 1.38 0.15 1.52 0.04 1.56

1.56

Selling & Dist overhead Cost of sales Add: - Profit Add: Sales Tax Total sales

2.82 85.66 12.85 98.51 6.90 105.41

0.05 1.61 0.24 1.86 0.13 1.99

CREAMY
Production in Units :- 27.00 Sales in Ton:- 26.55 Amt. in lakh Amoun Amount t cost

Particular RAW MATERIAL CONSUMED Op. stock of Row Material Purchases Polyisonate Disocynate Total Add:- Direct Exps. Carriage Inward Less:-Closing Stock Polyisonate Disocynate Total R.M. Consumed Op. stock of WIP Cl. stock of WIP Prime cost Factory overheads Factory Cost Office overheads Cost of production Add:- OP. Stock of F.G. Less:- Closing stock of F.G. Cost of goods sold

0.00 23.15 54.94 78.09 0.78 1.10 2.62 3.72

0.00

0.00

75.16 0.00 0.00

2.78

0.00 75.16 3.95 79.11 1.04 80.14 0.00 1.34 78.81

0.00 2.78 0.15 2.93 0.04 2.97

2.97

Selling & Dist overhead Cost of sales Add: - Profit Add: Sales Tax Total sales

1.41 80.22 12.03 92.25 6.46 98.71

0.05 3.02 0.45 3.47 0.24 3.72

STATEMENT SHOWING DETERMINENTS OF SELLING PRICE & SALES
Amt. in lakh

Product Particular
Production (Ton) Sales (Ton)

Standar d
90.00

Econom y
81.00

Luxur y
63.00

Delux e
54.00

Cream y
27.00

Total
315.0 0 309.7 5 353.6 8 46.08

88.50

79.65

61.95

53.10

26.55

Prime cost Factory O/h. AdministrativeO/h . Cost Of Production Closing stock Cost of goods sold S&D o/h. Cost of Sale Profit (In amt.)

66.31 13.16

68.97 11.85

68.97 9.22

74.27 7.90

75.16 3.95

3.46

3.11

2.42

2.07

1.04

12.09 411.8 5 6.86 404.9 8 16.45 421.4 4 63.22

82.93 1.38

83.92 1.40

80.60 1.34

84.24 1.40

80.14 1.34

81.55 4.70

82.53 4.23

79.26 3.29

82.84 2.82

78.81 1.41

86.25 12.94

86.76 13.01

82.55 12.38

85.66 12.85

80.22 12.03

Sales Tax Sales (in Amt.) Cost per ton Profit per Ton Sales Tax S.P. Per Ton

6.94 106.14 0.97 0.15 0.08 1.20

6.98 106.76 1.09 0.16 0.09 1.34

6.65 101.58 1.33 0.20 0.11 1.64

6.90 105.41 1.61 0.24 0.13 1.99

6.46 98.71 3.02 0.45 0.24 3.72

33.93 518.58 1.36 0.20 0.11 1.67

SALARY STRUCTURE
(Amt. in lakh)

Designation

Person

Salary per month 0.40 0.20 0.08 0.05 0.20 0.05 0.03 0.02 0.01 0.01

Petrol allow.

Salary per annum 4.80 2.40 0.96 0.60 2.40

Amt.

· Administrative Personnel Managing director Finance manager Accountant clerk Marketing manager Sales Executive Receptionist Peon Sweeper Gate keeper Total · Factory personnel G.M. works Purchase manager Production manager Chief Engineer Skilled worker Supervisor Store keeper Security Guard Total · Labour Production Packaging Total Salary 1 1 1 2 1 6 1 2 2 1 4.80 2.40 0.96 1.20 2.40 5.04 0.36 0.36 0.12 0.12 17.76 17.76 3.00 2.40 2.40 1.80 2.16 1.92 0.48 0.18 14.34 32.10 4.80 1.44 6.24 38.34

0.02

0.84 0.36 0.18 0.06 0.12

1 1 1 1 3 2 1 1

0.25 0.20 0.20 0.15 0.06 0.08 0.04 0.02

3.00 2.40 2.40 1.80 0.72 0.96 0.48 0.18

10 3

0.04 0.04

0.48 0.48

STATEMENT SHOWING ALLOCTION OF

OVERHEADS PER YEAR
(Amt. in lakh) Particular Factory Over Head Administrative O.H. Selling & Distr. O.H. TOTAL 2006-07 46.08 12.09 16.45 74.63 2007-08 44.22 12.63 18.28 75.13 2008-09 43.37 13.22 17.07 73.65 200910 43.70 13.83 19.01 76.54 201011 44.50 14.47 21.16 80.13

FACTORY OVERHEAD
Particular Salary Electricity Repairs & maint. Depreciation Insurance Municipal Taxes Total Factory O.H. 200607 19.14 4.31 0.65 19.55 1.82 0.60 46.08 200708 20.10 4.93 0.65 16.12 1.82 0.60 44.22 200809 21.10 5.55 0.98 13.32 1.82 0.60 43.37

Amt. in lakh 2009201010 11 22.16 23.26 6.78 8.01 1.30 1.63 11.04 9.18 1.82 1.82 0.60 0.60 43.70 44.50

ADMINISTRATIVE OVERHEAD
200607 10.32 0.76 0.00 0.56 0.36 0.01 0.08 12.09 200708 10.84 0.78 0.00 0.56 0.37 0.01 0.08 12.63 200809 11.38 0.81 0.00 0.56 0.37 0.01 0.08 13.22 200910 11.95 0.84 0.00 0.56 0.38 0.01 0.08 13.83 Amt. in lakh 201011 12.54 0.87 0.00 0.56 0.39 0.01 0.09 14.47

Particular Salary Electricity Depreciatio n Insurance Telephone Postage Courier Total

SELLING & DISTRIBUTION OVERHEAD EXPENSES

Particular Salary Petrol Allowances Traveling Exp. Advertise Exp. Total

2006-07 8.88 1.44 0.06 6.07 16.45

200708 9.32 1.44 0.06 7.46 18.28

200809 9.79 1.44 0.06 5.78 17.07

Amt. in lakh 2009201010 11 10.28 10.79 1.44 1.44 0.06 0.06 7.23 8.86 19.01 21.16

ALLOCATION OF OVER HEAD PER PRODUCT
Product s Standard Economy Luxury Deluxe Creamy Total Sales In Ton 88.50 79.65 61.95 53.10 26.55 309.7 5 Productio n In Ton 90.00 81.00 63.00 54.00 27.00 315.00 Prime cost 66.31 68.97 68.97 74.27 75.16 353.68 Factory O/h. 13.16 11.85 9.22 7.90 3.95 46.08 Amt. in lakh Office S&D o/h. o/h. 3.46 3.11 2.42 2.07 1.04 12.09 4.70 4.23 3.29 2.82 1.41 16.45

DEPRECIATION AS PER IT ACT UNDER WDV METHOD
Rate s 10% 20% 25% 15% 15% 10% 25% Gross Block 75.79 74.00 1.00 0.25 0.09 0.74 1.07 152.9 4 200607 7.58 14.80 0.25 0.04 0.01 0.07 0.27 23.02 200708 6.82 11.84 0.19 0.03 0.01 0.07 0.20 (Amt. in lahk) 2008- 2009- 2010 09 10 -11 6.14 9.47 0.14 0.03 0.01 0.06 0.15 16.00 5.53 7.58 0.11 0.02 0.01 0.05 0.11 13.41 4.97 6.06 0.08 0.02 0.01 0.05 0.08 11.2 7

Particulars Building Plant & Mach. Computer A/C Printer Office equp. Furniture

TOTAL

19.16

TERM LOAN REPAYMENT
Term Borrowing Amt: 153.16
Repayment Installment: 20.00 Repayment Installment: 8.06 Interest Rate: 12% Moratorium (Month): 3 Amt. in lakh
Yea r Quarte r 1st Yea r 1st 2 3 2nd Yea r
nd rd th

Principle Remainin g 153.16 153.16 145.10 137.04 128.98 120.92 112.86 104.80 96.73 88.67 80.61 72.55 64.49 56.43 48.37 40.31 32.24 24.18 16.12 8.06 0.00

Installmen t Paid 0.00 8.06 8.06 8.06 8.06 8.06 8.06 8.06 8.06 8.06 8.06 8.06 8.06 8.06 8.06 8.06 8.06 8.06 8.06 8.06 153.16

Interest

Total Amt. Paid

Principle bal. ramainin g 153.16 145.10 137.04 128.98 120.92 112.86 104.80 96.73 88.67 80.61 72.55 64.49 56.43 48.37 40.31 32.24 24.18 16.12 8.06 0.00 0.00

Total Princip al Paid 0.00 8.06 16.12 24.18 8.06 16.12 24.18 32.24 8.06 16.12 24.18 32.24 8.06 16.12 24.18 32.24 8.06 16.12 24.18 32.24 153.16

Total Interes t

4.59 4.59 4.35 4.11 3.87 3.63 3.39 3.14 2.90 2.66 2.42 2.18 1.93 1.69 1.45 1.21 0.97 0.73 0.48 0.24 50.54

4.59 12.66 12.41 12.17 11.93 11.69 11.45 11.21 10.96 10.72 10.48 10.24 10.00 9.75 9.51 9.27 9.03 8.79 8.54 8.30 203.7 1

4

17.65

1st 2 3
nd rd th

4 3rd Yea r

14.03

1st 2 3
nd rd th

4 4th Yea r

10.16

1st 2 3
nd rd th

4 5th Yea r

6.29

1st 2 3
nd rd th

4

2.42 50.54

Total

Profit & Loss Account
PARTICULAR INCOME: Cash Sales Credit Sales Gross Sales Less: Excise Duty TOTAL INCOME EXPENDITURE Raw Material Consumed Production O.H. Administrative O.H. Selling & Dist. O.H. Misc. Exp .W/O TOTAL EXPENDITURE P.B.D.I.T. Depreciation P.B.I.T Interest on Term Loan P.B.T Tax paid PROFIT AFTER AXATION AMOUNT PPROPRIATION General Reserve TOTAL PAT to Sales PBT To Sales 122 2006-07 1 29.64 3 88.93 5 18.58 32.95 4 85.63 2007-08 158 .61 475 .83 634 .44 39 .90 594 .54 2008-09 182.9 3 548.7 8 731.71 46.3 1 685.4 0

Amt. in lakh 2009-10 2010-11 228.3 4 685.0 3 913.37 58.0 6 855.3 2 279. 20 837. 61 1,116.8 2 71. 13 1,045. 69

353.68 46.08 12.09 16.45 4.77 433.07 52.56 23.02 70.21 17.65 47.19 16.52 30.68

441.91 44 .22 12 .63 18 .28 4.77 521 .81 72 .72 19.16 86 .75 14.03 67 .59 23 .66 43 .94

522.33 43.3 7 13.2 2 17.0 7 4.77 600.7 5 84.6 5 16.00 94.80 10.16 78.81 27.5 8 51.2 2

668.19 43.7 0 13.8 3 19.0 1 4.77 749.49 105.82 13.41 112.11 6.29 98.70 34.5 5 64.1 6

830.21 44. 50 14. 47 21. 16 4.77 915. 11 130. 58 11.27 132.9 9 2.42 121.7 2 42. 60 79. 12

30.68 30.68 5.92% 9.10%

43.94 43 .94 6.93% 10.65%

51.22 51.2 2 7.00% 10.77%

64.16 64.1 6 7.02% 10.81%

79.12 79. 12 7.08% 10.90%

PBDT to Sales PBDIT to sales

13.54% 10.14%

13.67% 11.46%

12.96% 11.57%

12.27% 11.59%

11.91% 11.69%

BALANCE SHEET
Amt. in lakh

123

Particulars SOURCE OF FUNDS Owners Funds Reserves & Surplus Bank Loan TOTAL SOURCE OF FUND APPLICATION OF FUNDS Fixed Assets Land Building Less: Depreciation Plant and machinery Less: Depreciation Furniture Less: Depreciation Office equipment Computer Less: Depreciation Air condition & Printer Less: Depreciation Other Less: Depreciation

200607

200708

200809

200910

201011

65.64 30.68 128.98 225.30

65.64 74.61 96.73 236.99

65.64 125.83 64.49 255.97

65.64 189.99 32.24 287.88

65.64 269.11 0.00 334.75

36.00 75.79 7.58 68.21 74.00 14.80 59.20 1.07 0.27 0.80 1.00 0.25 0.75 0.34 0.05 0.29 0.74 0.07 0.67 165.91

36.00 75.79 14.40 61.39 74.00 26.64 47.36 1.07 0.47 0.60 1.00 0.44 0.56 0.34 0.09 0.25 0.74 0.14 0.60 146.76

36.00 75.79 20.54 55.25 74.00 36.11 37.89 1.07 0.62 0.45 1.00 0.58 0.42 0.34 0.13 0.21 0.74 0.20 0.54 130.76

36.00 75.79 26.06 49.73 74.00 43.69 30.31 1.07 0.73 0.34 1.00 0.68 0.32 0.34 0.16 0.18 0.74 0.25 0.49 117.35

36.00 75.79 31.04 44.75 74.00 49.75 24.25 1.07 0.81 0.25 1.00 0.76 0.24 0.34 0.19 0.15 0.74 0.30 0.44 106.08

TOTAL FIXED ASSETS

124

CURRENT ASSETS,LOANS AND ADVANCE Inventory Raw Material Finished Goods Sundry Debtors Cash & Bank Balance TOTAL CURRENT ASSETS LESS : CURRENT LIABILITIES AND PROVITION Creditors Deffered Overhead TOTAL CURRENT LIABILITY NET CURRENT ASSETS Miscellaneous Expenditure TOTAL APPLICATION OF FUNDS

17.68 6.86 19.45 35.54 79.54

22.10 8.31 23.79 68.32 122.52

26.12 9.65 27.44 107.01 170.21

33.41 12.10 34.25 155.40 235.16

41.51 14.82 41.88 216.09 314.30

36.75 2.49 39.24 40.30 19.08

44.10 2.50 46.60 75.92 14.31

52.09 2.45 54.55 115.67 9.54

66.85 2.55 69.40 165.75 4.77

82.96 2.67 85.63 228.67 0.00

225.30

236.99

255.97

287.88

334.75

125

FUND FLOW STATEMENT
200607 200708 200809 Amt. in lakh 2009201010 11

Particulars SOURCE OF FUNDS : Profit before Tax Depreciation Owners Funds Bank Loan Increase In Sundry Creditors Increase in Deferred Over Head Miscellaneous Exp. W/O TOTAL SOURCEOF FUND APPLICATION OF FUND Increase - Fixed Assets Repayment of Loan Tax Paid Preliminary Expenses Increase in Debtors Increase in Stock of R.M. Increase in Stock of F.G. TOTAL APPLICATION OF FUND Opening Balance Surplus (A-B) Closing Balance

47.19 23.02 65.64 153.16 36.75 2.49 4.77 333.03

67.59 19.16 0.00 0.00 7.35 0.02 4.77 98.89

78.81 16.00 0.00 0.00 7.99 -0.05 4.77 107.52

98.70 13.41 0.00 0.00 14.76 0.10 4.77 131.74

121.72 11.27 0.00 0.00 16.11 0.12 4.77 153.99

188.94 24.18 16.52 23.85 19.45 17.68 6.86 297.48 0.00 35.54 35.54

0.00 32.24 23.66 0.00 4.34 4.41 1.45 66.11 35.54 32.78 68.32

0.00 32.24 27.58 0.00 3.65 4.02 1.34 68.83 68.32 38.69 107.01

0.00 32.24 34.55 0.00 6.81 7.29 2.45 83.34 107.01 48.39 155.40

0.00 32.24 42.60 0.00 7.63 8.10 2.72 93.30 155.40 60.69 216.09

126

BREAK EVEN ANALYSIS
Amt. in lakh 200910 2010-11 913.3 1,116.8 7 2 668.19 58.06 59.75 6.78 7.2 3 800.01 113.3 6 44.38 0.16 13.41 2.39 0.60 1.30 1.44 0.06 0.06 0.01 0.08 63.8 9 49.4 7 12.41 830.21 71.13 73.06 8.01 8.86 991.28 125.54 46.60 0.16 11.27 2.39 0.60 1.63 1.44 0.06 0.06 0.01 0.09 64.31 61.23 11.24

Particulars Sales Less : Variable Cost Raw Mat.Consume Excise Duty Sales Tax Variable Power Cost Advertise expen. Total Variable Cost Contribution Less : Fixed Cost Salary & Wages Fixed Power Cost Depreciation Insurance Municipal Taxes Repair & Maint. Petrol Allowances Traveling Expenses Telephone Postage Courier Total Fixed Cost PROFIT PVRatio=Contribution/Sale s

2006-07 518.58 353.68 32.95 33.93 4.31 6.07 430.94 87.64 38.34 0.16 23.02 2.39 0.60 0.65 1.44 0.06 0.06 0.01 0.08 66.81 20.83 16.90

200708 634.4 4 441.91 39.90 41.51 4.93 7.4 6 535.7 1 98.7 3 40.26 0.16 19.16 2.39 0.60 0.65 1.44 0.06 0.06 0.01 0.08 64.8 6 33.8 7 15.56

200809 731.7 1 522.33 46.31 47.87 5.55 5.7 8 627.8 4 103.8 7 42.27 0.16 16.00 2.39 0.60 0.98 1.44 0.06 0.06 0.01 0.08 64.0 4 39.8 3 14.20

127

BEP=Fixed cost/PVratio

395.31

416.81

451.14

514.77

572.09

CAPITAL BUDGETING ANALYSIS
PAY BACK PERIOD
Particular PAT Add:- Dep. Preliminary Exps. Total Cash Flow 2006-07 30.68 23.02 4.77 58.47 2007-08 43.94 19.16 4.77 67.86 200809 51.22 16.00 4.77 71.99 2009-10 64.16 13.41 4.77 82.33 2010-11 79.12 11.27 4.77 95.16

Year 2006-07 2007-08 2008-09 2009-10 2010-11

Cash Flow 58.47 67.86 71.99 82.33 95.16 Cash flow

Remainin Cumulative g Cash Cash Flow Flow 58.47 160.34 126.33 92.47 198.32 20.48 280.66 375.82 Month 82.33 20.48 12 3

Cost Of Project

218.80

In Fourth Year

PAY BACK PERIOD = 3 YEARS & 3 MONTHS 128

NET PRESENT VALUE METHOD
Amt. in lakh P.V. Factor @ Cash Flow 10% 58.47 0.9090 67.86 0.8264 71.99 0.7513 82.33 0.6830 95.16 0.6209 Present Value of Cash Inflows Lessresent Value of Cash Outflows N.P.V. Amount 53.15 56.08 54.09 56.23 59.09 278.64 218.80 59.83

INTERNAL RATE OF RETURN METHOD
(Amt.in lakh) P.V. Factor @ Cash Flow 10% 58.47 0.9090 67.86 0.8264 71.99 0.7513 82.33 0.6830 95.16 0.6209 Present Value of Cash Inflows Lessresent Value of Cash Outflows N.P.V. P.V. Factor @ Cash Flow 20% 58.47 0.8333 67.86 0.6944 71.99 0.5787 82.33 0.4822 95.16 0.4019 Present Value of Cash Inflows Less: Present Value of Cash Outflows 129 Amount 53.15 56.08 54.09 56.23 59.09 278.64 218.80 59.83

Amount 48.72 47.12 41.66 39.70 38.25 215.45 219

N.P.V.

-3.35

IRR = LOWER RATE + POSITIVE NPV *(HIGHER RATE-LOWER RATE) POSITIVE NPV-NAGATIVE NPV

IRR = 20.59

RATIO ANALYSIS

130

RATIO LIQUIDITY RATIO Current Assets Ratio =C.A. C.L. Quick Ratio = Current Assets – Stock Current Liabilities - B.O.D. Acid Test Ratio = Quick Assets Current Liabilities - B.O.D. PROFITIBILITY RATIO Gross Profit Ratio = Gross Profit ×100 Sales Net Profit Ratio = Net Profit ×100 Sales Operating Ratio = PBIT ×100 Sales Return on Investment = PBIT ×100 Total Assets-Misc. Exps. Debt-Service Coverage Ratio =Profit available for Debt Payment Inst. Of Principal + Interest on Loan Profit available for Debt Payment=PAT+ Depriciation+ Misc.Exps.+Interest on Loan. Interest Coverage Ratio = PBIT Interest on Loan 131

1ST 2.03

2ND 2.63

3RD 3.12

4TH 3.39

5TH 3.67

1.40

1.98

2.46

2.73

3.01

0.91

1.47

1.96

2.24

2.52

10.82

12.2 3

12.3 5

12.3 7

12.4 9

6.32

7.39

7.47

7.50

7.57

14.46

14.5 9

13.8 3

13.1 1

12.7 2

28.61

32.2 2

31.5 0

31.8 0

31.6 4

4.31

5.84

8.09

14.0 9

40.3 5

3.98

6.18

9.33

17.8 3

54.9 9

EFFICIANCY RATIO Stock Turnover Ratio = Cost of Goods Solds Average Stock Fixed Assets Turnover Ratio = Sales Fixed Assets Total Assets Turnover Ratio = Sales Total Assets SOLVANCY RATIO Proprietary Ratio = Proprietor's Funds ×100 Total Assets-Misc. Exps. Debt-Equity Ratio = Long term Liabilities Owned Funds 39.24 52.0 8 63.6 2 72.5 2 79.6 3 118.0 0 65.5 4 64.3 1 66.5 3 65.8 7

2.93

4.05

5.24

7.29

9.86

1.98

2.21

2.28

2.43

2.49

1.34

0.69

0.34

0.13

0.00

132

FUTURE PLANNING
We are planning to expand our product length with producing seats and backs for designed Sofa-set after 5 th year. While expanding our product length, we suppose to expand our production capacity which will be beyond 70% of total production capacity. After 7th year we would like to come out with our own outlet in different city areas. In which we will introduced our own designed Sofa-set also. We will also preparing to expand our target market in other states of INDIA.

133

CONCLUSION
We would finally like to conclude our project with higher feeling of having gained enormous knowledge about the Foam Industries. This task has provided with the skills to undergo different areas of business and helped us to sharpen our management skills. We also learnt to deal with people in all circumstances and how to maintain contacts. The important part was to extract information though it was very difficult as our product is process based but it helped us to improve our potentials. This project made us to learn different people goals and there paths and also the ability to solve the difficulties. This made us realize how difficult it is to bring a thing to reality but its not impossible. We can now say to anybody that we know the comfort we get from our sofa sets car seats contains foam and we know how it is made the pain and hard work of worker is our comfort. Thus by doing this research on overall aspects of an industry we can say that the project is economically feasible.

134

BIBLIOGRAPHY

BOOK REFERRED MARKETING MANAGEMENT -PHILIP KOTTLER FINANCE MANAGEMENT -I M PANDEY INSTI TUTION GCCI- AHMEDABAD GIDC- AHMEDABAD INDEXTB- GANDHINAGAR GITCO- AHMEDABAD

135



doc_354079075.doc