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K.S.SCHOOL OF BUSINESS MANAGEMENT
CERTIFICATE
This is to certify that members of group “U” of third year MBA of K.S.
School of Business Management have successfully completed their feasibility
report on ice-cream co. for the academic year of 2010-11 and have duly
submitted to the institute.
Project guide:
Dr. Anjali Gokharu
Date of submission: 10th march, 2011
K.S.SCHOOL OF BUSINESS MANAGEMENT
GUJARAT UNIVERSITY
AHMEDABAD.
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NAME OF GROUP MEMBERS
ROLL NO. NAME
3136 SHAH CHINTAN J.
3137 SHAH DHRUMIT G.
3156 VISHNAV NIRALI K.
3161 BALSOD KAJAL D.
3162 BHARATIYA KRISHNA A.
3163 BORAD YOGITA M.
3167 CHUDASAMA RADHA R.
3181 MODI HEENA D.
3182 NAVLAKHA VINAY D.
3198 RATHOD NILAM D.
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INDEX
CHAPTER
NO.
PARTICULAR PAGE NO.
1 INTRODUCTION 5
ACKNOWLEDGEMENT
PREFACE
FEASIBILITY REPORT
PROJECT REASONING
PROJECT AT GLANCE
2 HISTORY 13
HISTORY OF INDUSTRY
3 LEAGAL FEASIBILITY 16
PARTNERSHIP DEED
BUSINESS ENVIRONMENT
PEST ANALYSIS
SWOT ANALYSIS
4 TECHNICAL FEASIBILITY 27
RAW-MATIRIAL
PROCESS CHART
PROCESS FLOW
TECHNICAL FEASIBILITY OF MACHINERY
PLANT LAYOUT
OTHER ASSETS
LOCATION ANALYSIS
LAYOUT ANALYSIS
5 HUMAN RESOURCE FEASIBILITY 48
ORGANISATION CHART
MANPOWER PLANNING
JOB ANALYSIS
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6 MARKETING FEASIBILITY 61
4 P’S OF MARKETING
PRODUCT MIX
MARKET RESEARCH
GRAPHICAL PRESENTATION
7 FINANTIAL FEASIBILITY : 1 120
COST OF PROJECT
SOURCE OF FINANCE
DETAILS OF EXPENSES
WORKING CAPITAL STATEMENT
8 FINANCIAL FEASIBILITY : 2 126
COST SHEET
PROFIT AND LOSS ACCOUNT
BALANCE SHEET
SCHEDULE FORMING PART OF BALANCE SHEET
CASH FLOW STATEMENT
NPV STATEMENT
PAY BACK STATEMENT
IRR
RATIO ANALYSIS
ASSUMPTION
9 CONCLUSION 153
10 WEBOGRAPHY 154
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ACKNOWLEDGEMENT
“Ignorance is bliss”
This phrase says that sometimes people enjoy overlooking something. An
acknowledgement is that which is most of the time overlooked by the
readers of the project, i.e. an acknowledgement is something very
important. Acknowledgement reflects or expresses the thankfulness towards
those people who helped us in the project.
“Perception defers”
The above two golden words says that sometimes perception of a person
defers from the other. Similarly, the theoretical knowledge can be acquired
easily then practical knowledge, which is not possible without proper
guidance, motivation & inspiration provided by different persons. Hence our
project is the diligence of many persons.
At first, we are thankful to DR.SARLA ACHUTHAN, the director of
K.S.SCHOOL OF BUSINESS MANAGEMENT who gave us such a wonderful
opportunity to explore our potential.
We also express our deep sense of gratitude to our esteemed faculties for
their invaluable guidance. We are also thankful to Dr. ANAJALI GOKHRU, our
group guide, for giving such a precious guidance for making the project.
We are also thankful to Mr. Rohit Mehta, MD of Madhur Dairy and Mr. Haresh
Patel, the owner of Ashrfi for helping us in various aspects of project. Once
again, our group is thankful to all of them whose valuable contribution
completes the project of feasibility report.
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K.S.SCHOOL OF BUSINESS MANAGEMENT
PREFACE
“Experience is the best teacher”. This proves plays a guiding role in
including industrial visit as a part of the curriculum of MBA program of
GUJARAT UNIVERSITY. This visit and consequent report on it have allowed
the students to get exposure to real business environment.
Only theory knowledge does not impart complete education practical
exposure must accompany a theoretical knowledge to add meeting to
education.
To fulfill this objective industrial visit has been integral part of MBA
programmed. Such practical training develops awareness in the
management regarding the difficulties and challenges of the business world.
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FEASIBILITY REPORT
A feasibility study is defined as “an evaluation or analysis of the
potential impact of a proposed project or program”. A feasibility study is
conducted to assist decision makes in determining whether or not to impact
a particular project or program. The feasibility study is based on extensive
research on both the current practice and the proposed project or program.
It is presented to senior management.
A good feasibility study is more than just a set of financial
projections done properly. It becomes the market driven strategic plan that
is the road map for all subsequent decisions. As much as answering the
question “Is a project feasible?” A good study also addressed the question of
what is most feasible. And what should all its attributes be to assure
maximum success.
By feasible we mean that we venture must be practically possible
with respect to the following aspects.
(1)Technical Feasibility:-
The process of assessing the development organization‟s ability to
constrict a proposed system. The technical recourses capable of meeting the
needs of a proposed system can be required or developed by an organization
in the required time.
(2) Market Feasibility:-
It is to determine the suitability of the property for profitable
development and to define optimal products and amenities in accordance
with projected market demand and to project sales absorption and annual
revenues from development of this property. Just producing a product is not
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the ultimate end but rather a beginning .It must be readily accepted by
customer and market.
(3) Financial Feasibility:-
It involves a market study or demand analysis to help determine and
support assumption regarding anticipated revenues. This helps company
management decide whether or not to commit additional recourses or
borrow funds to finance a venture. It assures potential leaders and inventors
that there is a fair return on capital invested by them.
(4) Social Feasibility:-
It should not only be viable from the above mentioned angles but it
must also be such that it does not harm the society.
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SELECTION OF PROJECT
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SELECTION OF PROJECT
Each and every individual, firm, industry and nation wants to be ahead
adequate and amiable labor force, paper transportation and other
infrastructural facilities along with the line help the business unit to bloom.
Project report on the feasibility on ice-cream was allotted by the
collage authority as a part of practical study curriculum to group “U”. We
group member performed various activities as per guidelines provided in the
pamphlet of Gujarat university. We did market research about the ice-cream
in the various areas of Ahmadabad and Gandhinagar for getting in depth
knowledge and to get the clear ideas of activity relating to project we visited
the production unit Situated at Gandhinagar in Madhur Diary and at Vasna in
Ashrfi .
The Indian dairy industry is poised for dramatic growth in the coming
decades. The population growth, unorganized income growth, high income of
demand and changes in food habits that fielded the increase in milk
consumption are expected to continue well into the new millennium.
Reasons for the selection of the product
Now days, we are able to witness certain changes in the behavior of
mass population regarding their eating habits, especially ice-cream. They are
becoming more and crazier for ice-cream parlors are also mushrooming at
every noole and corner, which indicate the over increasing demand for ice-
cream.
In our country summer season is too long compared to other season
and people like to refer cool things like ice-cream, cold drinks, milk shake,
fruit juices, etc. so, about 82 % people like to eat ice-cream.
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Ahmadabad has unique destination having the highest per capital
consumption ice-cream only in summer. But they consume equally in winter
and monsoon also. Above all it has become a trend that every function it a
party or marriage is incomplete without ice-cream so to towards different
brands and flavors of ice-cream. We have selected this topic for our research
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PROJECT AT GLANCE
Name of the unit: DELICIOUS
Constitution: Partnership Firm
Status of Industry: Manufacturing
Date of incorporation: 1’st April, 2010
Project: Ice cream Manufacturing
Cost of project: Rs.1, 11, 72,385.32
Logo:
Tag line: “You name it, we make it.”
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HISTORY OF ICE- CREAM
Once upon time hundreds of years ago, Charles one of England hosted
a sumptuous state banquet for many of his friends and family. The meal,
consisting of many delicacies of the day, had been simply superb, but the
“cup-de-grace” was yet to come. After much preparations king‟s French chef
had concocted with closed and resembled fresh fallen show but was much
creamier and sweeter than any other after dinner decent. The king rewarded
his chief for his recipe to keep this secret of making such ice-cream. But that
chef could not keep that secret of making such ice-cream but that chef could
not keep that secret for long and it was spread out and ice-cream was born.
In 1983, cookies and cream made with real Oreo cookies became an instant
hit climbing to no five on the list of selling ice-cream flavors. It also holds
the distinction of being the fastest growing new flavor in the history of the
Ice-cream Industry.
In 1991 another flavor phenomenon was created chocolate chip cookie
dough ice-cream, which combines the best part of the chocolate chip cookie.
Thus ice-cream become very popular in our over the world the
consumption market of ice-cream is growing day to day. The first
commercial ice-cream plant was established in Baltimore in 1851 by Jacob
Fuss ell.
The first ice-cream cone was made on September 22; 1896.He was
granted a patent for his special mold in December 1903.In 1904 the wattle
ice cream cone was introduced at the st.louis world‟s fair when a waffle
concessionaire started rolling waffle into the shape of a cone for the benefit
of ice-cream vender who occupied on adjoining both.
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The first frozen dessert is credited to Emperor Nero of Rome. It was a
mixture of show (which he sent his slaves into the mountains to retrieve)
and nectar, fruit pulp and honey.
During the stuffy Victorian period, drinking soda water was
considered improver so sone towns banned its sale on Sundays. An
enterprising druggist in Evanston, Illinois, reportedly concocted a legal
Sunday alternative containing ice-cream and syrup but no soda. To show
respect for the Sabbath he later changed the spelling to “sundae”.
The first ice-cream parlor in America opened in Newyork city in 1776.
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HISTORY OF ICE CREAM INDUSTRY
Though India has a low per capita Ice-cream consumption of 300ml
per annum the trend is slowly changing due to a number of reasons.
In 2007 the global market of ice-cream was pegged of $61.6 billion
in terms of volume of 15 billion liters in terms if volume of this , the Asian-
pacific ice-cream market was worth $ 13 billion in terms of retail value &
5128 million liters in terms of volume coming to India ,the Indian ice cream
industry is currently estimation to be worth rs.2000 crores , growing at a
rate of approximately 12% Rs. CGM of Gujarat co-operative milk marketing
the makers of Amul explains “ The ice-cream market in India can be divided
into the branded market & grey market. The branded market at present is
100 million liters per annum valued at rs.800 crores The grey market
consists of small local players & cottage industry players. In 2008-09 in the
branded ice-cream market , Amul held the no.1 spot, with a market share of
38% , followed by quality walls at 1% , Vadilal at 12% & mother dairy at 8%
. Despite a decent growth rate, the ice-cream industry faces challenges of
low per capita income.
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DEED OF PARTNERSHIP
(Between ten partners to be executed on Rs 15 non judicial stamp
paper). This indenture of partnership is made on 1st April, 2010 between
Sr. No. Name Father’s Name Address
1 Dhrumit Girishbhai Shah Girishbhai Shah 15, Santa Appartment,
Vasna , Ahmadabad.
2 Chintan Jatinkumar Shah Jatinkumar Shah 3362. Revadasni Pole,
Shahpur, Khanchi, Ahmadabad.
3 Vinay Dasharathbhai Navlakha Dasharathbhai
Navlakha
35/1155, Vrajnagari,
Nr. Sachin Tower, Satellite,
Ahmadabad.
4 Kajal Devjibhai Bhalsod Devjibhai Bhalsod 3, Laxmi Nagar, Shivram Society,
Sabarmati, Ahmadabad.
5 Heena Dilipkumar Modi Dilipkumar Modi 1826/1, Bhurabhai Nu Dehlu,
Dariapur, Ahmadabad.
6 Krishna Arjunbhai Bharatiya Arjunbhai
Bharatiya
2, Gulbaninagar, Nemrajul Society,
Ahmadabad.
7 Nirali Kalidas Vaishnav Kalidas Vaishnav 26/B, Row-House, Harinagar,
Vavol, Gandhinagar.
8 Radha Raghurajsingh
Chudasama
Raghurajsingh
Chudasama
Sec-B-C, Plot No. 1027/2,
Gandhinagar.
9 Yogita Mansukhbhai Borad Mansukhbhai
Borad
27/2, Tenement, Kirti-Dham,
Vavol, Gandhinagar.
10 Nilam Danjibhai Rathod Danjibhai rathod 201, Ashutosh app. Bhulabhai
park, Ahmadabad
Whereas the parties have here to agree to commence business in
partnership and it is expedient to have a written instrument of partnership.
NATURE AND PLACE OF BUSINESS :
Whereas the parties here to have mutually agreed to carry on the
business of “manufacturing, processing, preservation and distribution of
all kind of ice cream in any form” at Naroda and to share the profit or loss
of the said business in partnership between themselves and they have
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with that object constituted themselves in to a firm of partners under the
name and style of Delicious Ice-cream.
DURATION OF FIRM :
The duration of the firm shall be Partnership at Will.
CAPITAL CONTRIBUTED BY PARTENERS :
The capital of the firm for the time being is fixed at Rs 90,00,000
(Rupees Ninety Lacs only) which has been contributed equally by
partners i.e. Rs. 9,00,000 (Rupees Nine Lacs) by Each Partner.
Provided that the partners may by mutual agreement increase or
decrease the capital and their respective contribution there to. The
partners by mutual consent may raise capital by way of loan if
considered expedient.
PROFIT/LOSS SHARING RATIO :
The partners shall distribute the net profit and bear the losses in
equal ratios.
INTEREST/REMUNERATION TO PARTNERS :
All the partners are working and may be allowed interest on capital
at maximum rate of 12% per annum and salary as maximum
permissible under section 40(b) of the income tax act.
WITHDRAWAL :
The partners shall be entitled to withdraw out of net profit money
not exceed Rs 50,000, in each month adjustable against the
account of the respective partners at the time of annual accounting.
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BOOKS OF ACCOUNT :
The firm shall maintain in the ordinary course of business a
true and current account of all its incoming and outgoing and
also its assets and liabilities of all account which shall be
ordinarily be kept at the firms place of business.
Immediately after each 31st march of every year, the partners
shall take an account and valuation of the effect, credit and
liabilities of partnership. Such accounts and valuation shall
after mutual examination be drawn up in duplicate and signed
by the partners, we shall each retain of copy. The entries in
such signed accounts shall be final and binding between the
parties. The profit or loss as a case may be shall be divided as
aforesaid, after the signing of such account.
APPOINTMENT OF EMPLOYEE :
No clerk or servant shall be employed or dismissed without the
consent of all the partners.
AUTHORITY OF PARTNERS :
The authority of the partners individually shall be limited to the
following.
(a) No partner shall individually purchase goods for partnership
without consulting the other and obtaining his consent for
purchase of the value exceeding Rs.100000.
(b) No partners shall singly bind the partnership by taking any loan
or raising any money whether with or without security to the
extent of more than Rs.200000.
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ADMISSION OF PARTNER :
The partnership shall be deemed to be continuing on the admission
of a fresh partner or partners, provided the admission is on the
terms herein laid down and is approved by all the partners.
DISSOLUTION :
Every partner shall be entitled to dissolve the partnership in the
event of the other committing breach of the conditions herein
covenanted. The partnership may be dissolved by a notice in
writing sent by registered post to the address herein given or
such as may be registers from time to time with the registrar of
firms. On the dissolution of firm under this clause the expelled
partners shall not be liable for any loss incurred as from the date
of dissolution. But no profit or loss shall be paid or become
payable except at the time of annual accounting.
DISPUTE BETWEEN PARTNERS :
If at any time any dispute ,doubt or question shall arise between
the partners, or their representatives either on the construction of
these presents or respecting the accounts, transaction, profit or
losses of the business or otherwise in relation to the partnership
then every such dispute of the par, doubt or question shall be
referred to arbitrators chosen by each partners and the
representative of their umpire to be appointed in the mode and
consequence thereof conform to be provisions in that behalf
contained and conciliation Act, 1996 or any statutory modification
thereof.
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IN WITNESSES WHEREOF the said Dhrumit, Chintan, Vinay, Kajal,
Heena, Krishna, Nirali, Radha, Yogita and Nilam here to at Ahmedabad
signed the day and the year first mentioned above.
Witness: Signature of Partners:
Hardik Desai Dhrumit
Practicing Chartered Accountant, Chintan
Membership No. 3852 Vinay
Sign: Kajal
Heena
Krishna
Dhaval Gandhi Nirali
Practicing Company Secretary, Radha
Membership No. 3852 Yogita
Nilam
Sign:
LICENCE REQUIRED
Labour registration certificate
Small scale industry license
Income tax registration number
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EVALUATION OF PROJECT
Business environment analysis
Since 1961 the industry has grown rapidly and tremendously research
has shown that ice-cream product are stable in the environment during use
when they are properly dispose of ice-cream are rapidly handled by
municipal west handling process length or incineration.
Managers always have to perform their function in the organization.
The system approaches of managing suggest that an organization being a
sun system of boarders. Societal system has to work within the framework
provided by the society and in the various constituents. This constitutions
are combined to constitute environment for the given organization
environment includes all the conditions, circumstances and influence
surrounding and total organization or any of its part environment can be
defined as “environment consist of atoms and molecules, agglomeration of
things in mation, alive of man and emotions of physical and social low, social
ideas, norms of actions of force and resistance. There number is infinitive
and they are always present they are always changing.”
There are many forces in environment which influents the working of
the organization. There forces may be classifying as economy legal, political,
technological culture, etc. There forces have an important effect in
determining the resources available for the inputs. The most appropriate
organization process and the acceptability of organizational output. The
organizational environment can broadly classify mainly into categories;
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EXTERNAL ENVIRONMENT
External environment consists of those factors which lie outside the
organization. This may be economical, geographical, technical, political, etc.
change in the organization social value and many changes in the economy,
changes in the recourses avaibility and change in the market place and so an
which of this external factor will have particular significant for a specific
organization depends on circumstances surrounding that business.
As then ice-cream is an industrial product, we can relate the various
environment factors in the following ways.
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Political environment :-
Frequent changes in the central and state government leads to
changes in the industrial policies. This environment composed of
regulation, government spending and patent protection even personal
thinking of particular political leader may affect adversely or favorable to
this service industry.
Economical environment :-
As far as economic aspect is concerned the entrepreneur of the ice-
cream in to industry has to fight the fought competition. However, they
are all together in two kind of sector i.e., organized sector and
unorganized sector .The companies like vadilal , Amul, 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.
Social factors :-
Every organization would like to make itself so that its full capacity
utilizes and large market share can capture.
However, this is not possible and organization required forecasting its
sales at given price. This planning process as the whole exercise of the
planning is general to this only.
Technical environment :-
One of the most important forces shaping people‟s lives technology.
The latest technology can excel their growth. Every new technology is a
force for “creative destruction”. Moreover the innovating process always
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leads to the increase in the investment. Technological inventories are
introduced for higher productivity, lower cost and more revenues.
Technology refers to some total of knowledge providing ways to do
things. Organization should give constant consideration of the manner in
which innovation may affect their product and also to their internal
operation efficiency.
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SWOT ANALYSIS
STRENGTH:
Now a day‟s people spend more and more on eatables. As we
are offering good quality ice-cream at reasonable price out ice-
cream will definitely attract the customer. So our venture is less
risky.
Due to good machinery and advanced technology our production
capacity can be efficiently utilized which teach to lowering cost
peer unit. Thus, we can sell our product at lower price.
The labor required does not require much specify qualification
and skills.
As our unit will be located in the vicinity of GIDC infrastructure
facility will be easily available and moreover we will also get the
support from Govt.
As it is in GIDC area social duty will also be fulfills as the
polluted water would be first by common effluent plant and then
disposed.
Availability of labor is easy, cheap and is on contract basis also.
WEEKNESS:
Huge investment at time becomes weakness for the industry and
the project becomes financially infeasible.
Due to credit facilities given to the customers the lot of working
capital gets locked up.
Due to developing facility in this field it has to be upgraded
frequently, which involves high in sunk cost.
More marketing is required in this field as the main marketing
aspect is direct.
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OPORTUNITY:
As we are all together coming up with a new flavors of ice-cream we
may be able to provide the demand of customers.
There are other opportunities of export in the foreign market because
low cost labors and raw material are readily available in India.
Creates more channels, as the world is moving towards globalization.
THREATS:
Competition with cheap ice cream product.
Internal competition for resources.
Political instability.
Rising labor cost.
Increasing competition.
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INTRODUCTION
In this era of globalization, a technical feasibility study is an excellent
tool for trouble shooting and long term planning. In some regards it serves
as a flow chart of concern‟s proposed products and service and move
through your business to physically reach your market.
It answers the following questions:
- Is the project possible with current technology?
- How much technical risk is there?
- Does the technology exist at all?
Thus, it establishes that the product or service can operate in desired
manner.
The assessment of technical feasibility is based an outline design of
product requirement in terms of input, process, fields, programmers and
procedures and this can be quantified in order to estimate whether the new
product will perform adequately or not.
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RAW MATERIAL Ice Cream Manufacture
The basic steps in the manufacturing of ice cream are generally as follows:
blending of the mix ingredients
pasteurization
homogenization
aging the mix
freezing
packaging
hardening
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The red section represents the operations involving raw, unpasteurized
mix, the pale blue section represents the operations involving pasteurized
mix, and the dark blue section represents the operations involving frozen ice
cream.
Blending
First the are selected based on the desired from the formulation and
the ingredients chosen, then the ingredients are weighed and blended
together to produce what is known as the "ice cream mix". Blending requires
rapid agitation to incorporate powders, and often high speed blenders are
used.
Pasteurization
The mix is then. Pasteurization is the biological control point in the
system, designed for the destruction of pathogenic bacteria. In addition to
this very important function, pasteurization also reduces the number of
spoilage organisms such as psychrotrophs, and helps to hydrate some of the
components (proteins, stabilizers).
Pasteurization (Ontario regulations): 69° C/30 min. 80° C/25s
Both pasteurizers and methods are used.
Batch pasteurizers lead to more whey protein denaturation, which
some people feel gives a better body to the ice cream. In a batch
pasteurization system, blending of the proper ingredient amounts is done in
large jacketed vats equipped with some means of heating, usually steam or
hot water. The product is then heated in the vat to at least 69 C (155 F) and
held for 30 minutes to satisfy legal requirements for pasteurization,
necessary for the destruction of pathogenic bacteria. Various time
temperature combinations can be used. The heat treatment must be severe
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enough to ensure destruction of pathogens and to reduce the bacterial count
to a maximum of 100,000 per gram. Following pasteurization, the mix is
homogenized by means of high pressures and then is passed across some
type of heat exchanger (plate or double or triple tube) for the purpose of
cooling the mix to refrigerated temperatures (4 C). Batch tanks are usually
operated in tandem so that one is holding while the other is being prepared.
Automatic timers and valves ensure the proper holding time has been met.
Continuous pasteurization is usually performed in a high temperature short
time (HTST) heat exchanger following blending of ingredients in a large,
insulated feed tank. Some preheating, to 30 to 40 C, is necessary for
solubilization of the components. The HTST system is equipped with a
heating section, a cooling section, and a regeneration section. Cooling
sections of ice cream mix HTST presses are usually larger than milk HTST
presses. Due to the preheating of the mix, regeneration is lost and mix
entering the cooling section is still quite warm.
Homogenization
The mix is also which forms the fat emulsion by breaking down or
reducing the size of the fat globules found in milk or cream to less than 1 µ
m. Two stage homogenization is usually preferred for ice cream mix.
Clumping or clustering of the fat is reduced thereby producing a thinner,
more rapidly whipped mix. Melt-down is also improved. Homogenization
provides the following functions in ice cream manufacture:
Reduces size of fat globules
Increases surface area
Forms membrane
Makes possible the use of butter, frozen cream, etc.
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By helping to form the, it also has the following indirect effect:
makes a smoother ice cream
gives a greater apparent richness and palatability
better air stability
increases resistance to melting
Homogenization of the mix should take place at the pasteurizing
temperature. The high temperature produces more efficient breaking up of
the fat globules at any given pressure and also reduces fat clumping and the
tendency to thick, heavy bodied mixes. No one pressure can be
recommended that will give satisfactory results under all conditions. The
higher the fat and total solids in the mix, the lower the pressure should be.
If a two stage homogenizer is used, a pressure of 2000 - 2500 psi on the
first stage and 500 - 1000 psi on the second stage should be satisfactory
under most conditions. Two stage homogenization is usually preferred for ice
cream mix. Clumping or clustering of the fat is reduced thereby producing a
thinner, more rapidly whipped mix. Melt-down is also improved.
Ageing
The mix is then aged for at least four hours and usually overnight. This
allows time for the fat to cool down and crystallize, and for the proteins and
polysaccharides to fully hydrate. Aging provides the following functions:
Improves whipping qualities of mix and body and texture of ice cream
It does so by:
providing time for fat crystallization, so the fat can partially coalesce;
allowing time for full protein and stabilizer hydration and a resulting
slight viscosity increase;
Allowing time for membrane rearrangement and protein/emulsifier
interaction, as emulsifiers displace proteins from the fat globule
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surface, this allows for a reduction in stabilization of the fat globules
and enhanced partial coalescence.
Aging is performed in insulated or refrigerated storage tanks, silos,
etc. Mix temperature should be maintained as low as possible without
freezing, at or below 5 C. An aging time of overnight is likely to give best
results under average plant conditions. A "green" or unaged mix is usually
quickly detected at the freezer.
Following mix processing, the mix is drawn into a flavor tank where
any liquid, fruit purees, or colors are added. The mix then enters the
dynamic freezing process which both freezes a portion of the water and
whips air into the frozen mix. The "barrel" freezer is a scraped-surface,
tubular heat exchanger, which is jacketed with a boiling refrigerant such as
ammonia or Freon. Mix is pumped through this freezer and is drawn off the
other end in a matter of 30 seconds, (or 10 to 15 minutes in the case of
batch freezers) with about 50% of its water frozen. There are rotating blades
inside the barrel that keep the ice scraped off the surface of the
Freezing and Hardening
Freezer and also dashers inside the machine which help to whip the
mix and incorporate air.
Ice cream contains a considerable quantity of air, up to half of its
volume. This gives the product its characteristic lightness. Without air, ice
cream would be similar to a frozen ice cube. The air content is termed its
overrun, which can be calculated
As the ice cream is drawn with about half of its water frozen,
particulate matter such as fruits, nuts, candy, cookies, or whatever you like,
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is added to the semi-frozen slurry which has a consistency similar to soft-
serve ice cream. In fact, almost the only thing which differentiates hard
frozen ice cream from soft-serve, is the fact that soft serve is drawn into
cones at this point in the process rather than in to packages for subsequent
hardening.
Hardening
After the particulates have been added, the ice cream is packaged and
is placed into a blast freezer at -30° to -40° C where most of the remainder
of the water is frozen. Below about -25° C, ice cream is stable for indefinite
periods without danger of ice crystal growth; however, above this
temperature, ice crystal growth is possible and the rate of crystal growth is
dependent upon the temperature of storage. A primer will help you to fully
understand the freezing and recrystallization process. Hardening involves
static (still, quiescent) freezing of the packaged products in blast freezers.
Freezing rate must still be rapid, so freezing techniques involve low
temperature (-40oC) with either enhanced convection (freezing tunnels with
forced air fans) or enhanced conduction (plate freezers).
The rate of heat transfer in a freezing process is affected by the
temperature difference, the surface area exposed and the heat transfer
coefficient (Q=U A dT). Thus, the factors affecting hardening are those
affecting this rate of heat transfer:
Temperature of blast freezer - the colder the temperature, the faster
the hardening, the smoother the product.
Rapid circulation of air - increases convective heat transfer.
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Temperature of ice cream when placed in the hardening freezer - the
colder the ice cream at draws, the faster the hardening; - must get
through packaging operations fast.
Size of container - exposure of maximum surface area to cold air,
especially important to consider shrink wrapped bundles - they
become a much larger mass to freeze. Bundling should be done after
hardening.
Composition of ice cream - related to.
Method of stacking containers or bundles to allow air circulation.
Circulation should not be impeded - there should be no 'dead air'
spaces (e.g., round vs. square packages).
Care of evaporator - freedom from frost - acts as insulator.
Package type, should not impede heat transfer - e.g., Styrofoam liner
or corrugated cardboard may protect against heat shock after
hardening, but reduces heat transfer during freezing so not feasible.
Ice cream from the dynamic freezing process (continuous freezer) can also
be transformed into an array of through a variety of filling and forming
machines, which have Ben identified on a separate page.
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TECHNICAL FEASIBILITY MACHINERY
PASTEURISER
Elegant look, Robust & Stardy design.
Extra rich hygienic construction & easy to clean.
All product contact parts made of S.S.304.
Water jacket construction for even heating.
Less fuel / power consumption due proper insulation for external tank.
Cost per unit is Rs. 400000
MODEL CAPACITY
(Liter /Bch)
DIMENSION
(W x D x H)
POWER SUPPLY
VOLT / Ph / Hz
INSTALLED POWER
(WATT)
PPG / 50 50 530 x 670 x 1185 415 / 3 /50 280
PPG / 100 100 615 x 775 x 1275 415 / 3 /50 380
PPG / 150 150 690 x 840 x 1300 415 / 3 /50 380
PPG / 200 200 760 x 860 x 1320 415 / 3 /50 560
PPG / 250 250 810 x 910 x 1400 415 / 3 /50 560
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HOMOGENIZER
Extremely compact Mechanical Design with superior finish.
To maintain a perfect hygienic condition, all parts direct contact
with Ice Cream mix made of either stainless steel or food Grade
Material.
Specially designed pressure valve which gives high performance
even at working time.
Diaphragm type pressure gauge to maintain perfect hygienic
condition.
Cost per unit is Rs. 350000.
MODEL CAPACITY
(Liter
/Bch)
DIMENSION
(W x D x H)
POWER SUPPLY
VOLT / Ph / Hz
INSTALLED POWER
(WATT)
PPH / 75 75 500 x 560 x 850 415 / 3 /50 1500
PPH / 150 150 520 x 650 x 950 415 / 3 /50 2250
PPH / 250 250 570 x 750 x 1000 415 / 3 /50 3000
PPH / 500 500 690 x 930 x 1140 415 / 3 /50 5625
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AGEING VAT
Extremely compact Mechanical Design
Rectangular Mix tank for proper mixing of Ice Cream Mix.
All product contact parts made of S.S.304 & Castors for easy
movements.
Glycol jacketed construction & effective stirrer gives even
cooling also maintains temperature on power failure. (selected
Models)
Less power consumption due to efficient refrigeration system
and PUF insulation.
Bottom drive stirrer with easily removable for complete cleaning.
Cost per unit is Rs. 900000
MODEL CAPACITY
(Liter /Bch)
DIMENSION
(W x D x H)
POWER SUPPLY
VOLT / Ph / Hz
INSTALLED POWER
(WATT)
PAV / 50 50 530 x 775 x 980 230 / 1 / 50 1260
PAV / 100 100 625 x 1230 x 1010 230 / 1 / 50 1320
PAV / 150 150 760 x 1045 x 1240 230 / 1 / 50 1820
PAV / 200 200 790 x 1075 x 1390 415 / 3 / 50 2380
PAV / 250 250 830 x 1195 x 1390 415 / 3 / 50 2880
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BATCH FREEZER
·]
Robust & elegant aesthetically Design.
All product contact parts made of S.S 304 or Food Grade
Material.
Specially designed of Beater & efficient refrigeration system
Resulting in high product output with low power consumption.
Extremely Compact Mechanical Design.
To maintain perfect hygienic condition oil less air compressor is
used to insert air in Ice Cream.
Cost Per unit Rs.200000.
MODEL CAPACITY (Liter /Bch)
DIMENSION (W x D x H)
POWER SUPPLY VOLT / Ph / Hz
INSTALLED POWER (WATT)
PBF / 10 10 610 x 980 x 1430 415 / 3 /50 3200
PBF / 20 20 610 x 1245 x 1430 415 / 3 /50 3800
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CONTINUOUS ICE CREAM FREEZER
All product contact parts made of S.S 304.
Completely automatic hands free continuous production machine with
consistent product quality.
Very easy to clean & assemble parts after cleaning
Very easy & few setting points for various quality production with
more safely control valve.
Low power consumption due to efficient refrigeration system &
cylinder, beater design.
Cost Per unit is Rs. 30, 00,000.
MODEL CAPACITY (Liter /Bch)
DIMENSION (W x D x H)
POWER SUPPLY VOLT / Ph / Hz
INSTALLED POWER (WATT)
PCF / 80 80 755 x 1390 x 1295
415 / 3 /50 5000
PCF / 150 150 600 x 1100 x 1400
415 / 3 /50 7000
PCF / 300 300 630 x 1260 x 1460
415 / 3 /50 9000
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CANDY PLANT
Robust design for continuous production outer & inner made a S.S.
304
Latest technology for continuous &
positive heat transfer hence fast production.
Low power consumption due to efficient refrigeration system & PUF
Insulation.
Electronic temperature controller for consistent control.
Compact to superior finish with stainless steel construction.
Cost per unit is Rs. 80,000.
MODEL CAPACITY
(Ltr /Bch)
DIMENSION
(W x D x H)
POWER SUPPLY
VOLT / Ph / Hz
INSTALLED POWER
(WATT)
PCP / 5 500 620 x 1350 x 990 415 / 3 /50 3500
PCP / 10 1000 620 x 2150 x 990 415 / 3 /50 6000
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HARDENING TUNNEL
Specially designed arrangement to hard candy & Ice Cream in very
short time.
Robust & Elegant aesthetically design.
Efficient refrigerated system & chambers maintain a temperature even
at working time.
Automatically control of temperature Defrost System by specially
designed programmable temperature Controller.
High density PUF Insulation with outer & Inner covers in S.S. 304
MODEL CAPACITY
(Later /Bch)
DIMENSION
(W x D x H)
POWER SUPPLY
VOLT / Ph / Hz
INSTALLED POWER
(WATT)
PHT / 4 225 x 250 x 1650 850 x 1750 x 2300 415 / 3 /50 3000
PHT / 8 225 x 250 x 2640 850 x 2740 x 2300 415 / 3 /50 6000
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PLANT LAYOUT
(a) Pasteurizer
(b) Homogenizer
(c) Batch freezer
(d) Continuous Ice cream freezer
(e) Candy plant
(f) Hardening Tunnel
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ADDRESS
PLOTNO-4207,
PHASE-IV,
VATVA,
GIDC,
BEHIND NEW NIRMA,
AHMADABAD.
The location of the plant is very important aspect in economic analysis of
any project as it plays a vital role in a continuing life of the business as in
future the firm has to leverage the advantages while operating with location
of as biggest constrains. Location of a plant or industry means a specifics
site is the region where the business unit is to be started. For selecting
location all the pertinent factors influencing the location have to be
considered and weighted out carefully.
We required 800 sq.feet lands for our plant
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LOCATION ANALYSIS
Key factor for any firm is setting up an industry and designing its
convenient location of the unit should be such that it give the maximum
benefit for the life time because its not advisable to shift the whole unit after
some year giving lame excuse of inappropriate condition. So to locate
business unit after deep study to facilitate acquisition of best raw material ,
cheap labor and basic amenities at the minimum cost
Criteria for selection of location
1. Cost of production :-
As our location is near to the market service area, the cost of
distribution will be lower.
2. Transportation facility :-
The plant of unit is located in naroda GIDC. The truck and
tempo owner of transportation facility of raw material and finished
goods from this location to any part of Gujarat at cheaper rate.
3. Competitors :-
We have many direct competitors still there many
opportunity for us to expand our business.
4. Utility and facilities :-
Water :-
Water our fir has taken water pipe line from GIDC itself
and it is sufficient for our firm and water supply is
unlimited.
Electricity :-
Electricity also provides by TORRENT power and
electricity supplied at rs. 4.5 per kHz.
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Communication :-
Communication facility is prima fascias in today‟s
competitive world. the total cost of telephone lines would
be rs.3000.
Material storage system:-
There will be a separate space for storing raw material
and finished goods. we have appointed a store keeper to
keep a watch on raw material and finished goods.
5. Labour supply:-
Labour is easily available both skilled and unskilled in this
area.
6. Government policy
Real estate excise duty and government taxes are
assessed as per rules and regulation. Attitude of local residence as it
is declared by Gujarat government that industrial area is far from
residential area so question of opposition by local residence do not
arise .
Detail of raw material:
Cream
Condensed milk
Butterfat
Sugar
Flavorings,
Federally approved additives.
Eggs are added for some flavorings, particularly French vanilla
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RAW MATERIAL SUPPLIER
GUJARAT GENERAL FOODCHEM PVT. LTD.
427, ARUN CHAMBERS, CHOKHA BAZAR, KALUPUR, Ahmadabad - 380002,
Gujarat, India
Phone:91-79-22130225/22136595
Fax:91-79-22172802
Key Personnel
Mr. Sadrubhai Karodia (Director)
Mobile : +919979892824
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ORGANIZATION CHART
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MEN POWER PLANNING
Capital, strategy and research and development don‟t always work and
when they don‟t work, what we can depend on is our human power. For any
industry manpower is considered as one of the most important aspect, which
plays vital role for its overall growth and development. So, it has been
rightly said that it is a man behind the machine that wins a war and not only
the machine. Hence, our organization is based on the same concept.
Thus, we are considering and implementing the concept that the
people are the prime source of the competitive advantage.
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JOB DESCRIPTION AND
JOB SPECIFICATION
Job description is the process by which an organization ensures that it
has the right number and kind of people at the right places at the right time,
capable of completing effectively and efficiently those tasks that will help the
organization to achieve its overall objective.
Job specification states the minimum acceptable qualification that the
employee must possess to perform the job successfully.
Job description and job specification of each employee mentioned in
organization chart is as follows:
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RECRUITMENT PROCESS
We are using some recruitment processes as following ….
1. Friend to friend:-
In this method we recruit people by preference of our
employees. It based on employees trust.
2. Applications :-
In this method we recruit candidate on the application basis by
selecting favorable Candidates.
3. Through Mail:-
In this process candidate can directly send job application
through E-mail to our HR department.
In additional we also use the internet sites like NAUKARI.COM,
MONSTER.COM etc. for finding favorable candidates for our company.
TRAINING PROCESS
In the training process we are using two methods.
1. In house :-
In which we are giving training to our employee on the running.
Work who already employed.
2. Out house :-
In this process training given to our new employees. Who are
newly recruited? We send them training agencies. Also fire training
given to them at our cost Rs.1500 per employees.
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EMPLOYEE WELFARE
(1) Medical allowances :-
Health insurance is given to our employees. Also we held health
check up for employees.
(2)Conveyance Allowance:-
Conveyance allowances are given to our employees to meet
transaction expenses incurred by him.
(3)Pension:-
We also provide pension to our employees.
(4)Travelling Allowances:-
Travelling allowances given to employee to meet tour expenses
incurred on transfer of employees.
(5) Gratuity:-
Lump-sum amount paid to employee when he retires after long
service. It is reward for his long service.
(6) Provident fund :-
Provident fund given to the employee at 12%
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JOB ANALYSIS
Job description
Job description is an organized , factual statement of duties and
responsibilities of a specific job. In brief, it should tell what is to be done ,
how it is going to be done. It is a standard of function , in that ; it defines
the appropriate and authorized content of a job.
Job specification
Job specification is a statement of the minimum acceptable human
qualities necessary to perform a job properly. It is standard of personal and
designates the qualities the qualities required for acceptable performance.
The details of the job description and specification for the
administrative persons are given below.
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HR manager
Job description
Job title HR manager
Reported to MD
Function To tactically handle the human resource tools and helps the firm attract talented people for
the required job.
Duties & responsibilities To maintain excellent professional relations with the educational institutions and
recruitment agencies.
Job specification :-
Job title HR manager
Education HRM
Experience 4-5 year
Mental ability Excellent communication skills and
leadership qualities.
Strong presentation abilities.
Maturity Should work with complete responsibilities.
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Marketing manager
Job description
Job title Marketing manager
Reported to Board of director
Function To make strategies for the market
To give guidance to the salesman
To study the market regularly
Duties & responsibilities To satisfy the customers
To create a god loyalty for the product
in the market.
To maintain the market of the product
Job specification:- Job title Marketing manager
Education MBA( marketing)
Experience Minimum five year
Mental ability To handle sales and promotion
activities.
Good decision making and
communication skills
Maturity Must be capable of handling all the matters
related with full responsibilities
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Finance manager
Job description
Job title Finance manager
Reported to General manager
Function Finance and accounts
Duties & responsibilities Candidate mast be very well versed in
dealing with banks And financial
institutions.
Candidate must be experienced with
arranging project finance for various
projects as well as Expansionist.
Candidate should be smart and articulate
with good communication and
presentation skills.
Job specification
Job title Finance manager
Education MBA (finance)
Experience 10-12yrs of total work experience in service
industry
5-7 years in the position of GM in a mid
sized/ large company BPO into finance &
accounting function.
Mental ability Should be hardworking and capable of
Understanding the numerical data easily.
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Supervisor
job description
Job title Supervisor
Reported to Production manager
Function To give instruction to the workers and to the workers and
to see whether they are working properly or not.
Duties & responsibilities To report the Technician about the work regularly.
Job specification
Job title Supervisor
Education Diploma in Electronics
Experience Minimum 3 years
Mental ability Should be good at interpersonal communication
and good temperament
Maturity Should be capable of training the workers along
proper channel motivating them.
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Accountant
Job description
Job title Accountant
Reported to Finance manager
Function To administer all the matters related to accounts
Duties &
responsibilities
To make all the books of accounts and to the
finance manager regularly
Job specification
Job title Accountant
Education M.con having good Knowledge about account.
Experience Minimum 5 years
Mental ability Should be hardworking an capable of
understanding the numerical data easily
Maturity Should take complete responsibilities of the work
given.
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PRODUCTION MANAGER
JOB DESCRIPTION
Job title Production Manager
Report to General Manager
Function To work in production department
Duties and
responsibility
To create a good loyalty for the product in the market
JOB SPECIFICATION
Job title Production Manager
Education B.sc
Experience 3 years
Mental ability Able to concentrate hard and numerical data and
have expert knowledge in the field of production
Maturity Must be capable of handling all the matter related to
production process.
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Worker
Job description
Job title Worker
Reported to Supervisor
Function To work in the production process
Duties &
responsibilities
To work honestly with his full capacity
Job specification
Job title Worker
Education SSC or HSC passed
Experience Not required
Mental ability Should be capable of understanding the working
of the machines
Maturity Should Work with complete responsibilities
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MARKETING FEASIBILITY
Introduction:-
The purpose of marketing feasibility study in to determine the
sustainability of the proposed product for profitable development and to
define optimal product quality in accordance with project market demand.
It includes a description of the industry, current market anticipated,
future market potential, competition, sales projects, potential buyers, etc
and collecting information about a potential market that can be used in
deciding how a new product or service should be designed, delivered, priced
and marketed.
Thus, it can provide accurate, timely, in depth information that will
help you make the best possible decisions, given the characteristics of your
likely customer base and competitors.
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4p’s of MARKETING
The marketing mix is the set of marketing tools that the firm uses
to pursue its marketing objectives in the target market. Here, all classify the
set of marketing tools into four broad groups that we called 4p‟s of
marketing.
1. Product
2. Price
3. Place
4. Promotion
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PRODUCT
Product is anything which is offered to the market for exchange or
consumption. Product can be in different form like service, physical product,
place, properties, ideas, event persons, organization, Information, etc. Our
product comes under the head of “Impulse goods”(goods are purchase
without planning).
Product level
In planning its marketing offering the marketers need to think
through five levels of products. Each level adds customer value.
1. Core benefit
2. Basic product
3. Expected product
4. Augmented product
5. Potential product
Each level adds more customer value and the constitute a
customer value hierarchy.
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1) Core benefit :-
The most fundamental level is core benefit. The service or
benefit. The service or benefit, the customer is really buying. The core
benefit of ice-cream is “FROZEN ICECREAM”
2) Basic product :-
At this level, the marketer has to convert the core benefit into a
basic product or generic product. The basic product is cup, candy,
cone, or family pack.
3) Expected product: -
At the third level, the marketer prepares an expected product,
asset of attributes and conditions buyers normally expect when they
purchase the product. The expected product of ice-cream is as under.
Various fruit flavors like mango, strawberry, pineapple, watermelon,
etc.
Good quality
Good packing (different pack size)
4) Augmented product :-
At the fourth level, the marketers prepare an augmented
product that exceeds customer expectations. In developed countries
brand competition take place at this level differentiation arises on the
basis of product augmentation. The augmented product is built up in
order to make it competitive and attractive. It offers the additional
benefit. In case of ice cream Augmented product is sugar free ice-
cream, vegetable ice-cream.
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5) Potential level :-
At the fifth level stands the potential product, which
encompasses all the possible augmentations and transformations the
product or offering might change undergo in the future. Here is where
companies search for new ways to satisfy customers and distinguish
their offer. Here, innovations play a very important role. Plain ice-
cream with different types like spicy ice cream.
Product mix :-
Product mix is a set of all the products and items that seller
offer for sells. Product mix is consisted of width, length, line, depth,
and consistency.
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A product mix related to Ice-cream is as follows.
1. Product line –
Product line refers to always particular company. In our ice-
cream product line is ice-cream.
2. Product width –
It refers to how many product line the company carries i.e.
quantity of product. In our ice-cream product width is one (1)
3. Product length –
It refers to the total numbers of items in the product mix. In
length, we ignore the product sizes and consider the product
verities. In our product ice-cream product length is 23. i.e.
Rajbhog, vanilla, kajudraksh, butter scotch, kesar pista, straw
berry sundae, mango sundae, blackcurrant sundae, chocolate
sundae, mangodoly, chocobar, raspberry dolly, minichocobar,
pineapples delight cone, chocolate drip cone, butterscotch cone,
prime kesar pista cone, vanilla, strawberry, butter scotch,
kajudraksh, choc chips and mango.
4. 4. Product depth
It refers to how many varities are offered of each product in
line.
I.e. cup :- (2*5)+(1*4)=10+4 = 14
Candy :- (1*4) =4
Cone: - (1*4) =4
Family pack (2*6) =12
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5. Product consistency –
It refers to how closely relate the various product lines
are in end use, production requirements, distribution channel
and some other way.
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PRICE
“Price is an important variable of the marketing mix. In response of
product customers are charged something that is nothing but price.”
Price planning is one of the most overlooked areas in industrial
marketing. The pricing decision is at the core of every business plan and
impacts directly on the critical components of a company‟s marketing
strategy.
PRICING POLICY
Our main objectives are
1. Survival
It‟s our major objective because we would face intense
competition; this is short term objective, in long run. We must learn
add rules to our product.
2. Maximization of market share
Our long objective is to become a role-player in this market. We
will charge lesser price than our competitors.
3. Analyzing competitor prices
As we are new in the market, it is not feasible to set higher price
than our competitor prices as sometime customer shift to competitor‟s
product due it price factor and therefore we priced our product
somewhere near the price of competitors.
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PRICE LIST OF ICE-CREAMS
Cup Big cup (Rs) Small cup (Rs)
Raj Bhog 20 10
Venilla 10 5
Kaju Draksh 15 8
Butter Scotch 15 10
Kesar Pista 20 10
Sundae cup Rs
Strawberry Sundae 12
Mango Sundae 10
Black current Sundae 12
Chocolate Sundae 15
Candy Rs
Mango dolly 10
Chocó bar 10
Raspberry dolly 10
Mini chocobar 5
Cone Rs
Pineapple delight cone 15
Chocolate drip cone 18
Butter scotch cone 12
Prime Kesar Pista cone 20
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Family Pack 750 ml. 1 liter.
Strawberry 110 140
Butter scotch 110 140
Kaju Draksh 85 120
Choco chips 120 160
Mango 80 110
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PLACE
It is one of the main features affecting the product as it is one of 4p‟s
of marketing. It covers the channels of publication house to customers
and also the area covered by the product like where the product is
sold. It also covers where and how the company store its stocks like
information of warehouses.
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Distribution channel :-
International marketers face many additional complexities in
designing their channels. Each country has its own unique distribution
system can very widely from country. Thus, global marketers must
usually adopt their channel strategies to the existing structures within
each country. In some markets the distribution system is complex and
hard to penetrate, consisting of many layers and large numbers of
intermediaries. Our main depot in Ahmadabad we sell our product in
Ahmadabad as wee as nearby Ahmadabad
Criteria of selecting agent :-
The agent should have sound knowledge of the product in depth.
He should have more contacts and more communication skills.
Agent should be experienced in this market and he should have
his name in the market as a potential tool for selling the product.
The agent will be appointed on a contractual basis of one year
and commission on his total sales will be given to them.
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PROMOTION
“promotion refers to the activities designed by the
organization stimulate quicker or greater purchase of services by
consumer.”
Promotion is a term taken from Latin word „promover‟ that means
moving from one to one and one to another.
In marketing promotion means all those tools through which the
marketer communicates its product to the consumer. It also includes
different means that he uses to increase the sale of his products.
Effective promotion can be done with the following five tools:
1) Advertisement.
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2) Sales promotion.
3) Public relation.
4) Personnel selling.
5) Direct marketing.
1) Advertisement
The word „advert‟ explains that
A-Active watch
D-develop relation
V- velocity
E-estimate
R-responsible
T-timely
According to the American marketing association ,
“advertising is services by an identified sponsor.”
ADVERTISING DETAILS:
NEWSPAPER IMAGE PAGE TOTAL AMOUNT
Gujarat Samachar Color Last 44007
Divya Bhsaker Color Last 22000 Times of India Color Last 66007
Total 132014
T.V Star plus 120000
HORDINGS 100000
Total 220000
TOTAL 652014
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5 M’s OF MARKETING
1. Mission
2. Money
3. Message
4. Media
5. Measurement
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1. Mission :-
Mission is consists of the central thing or objective
of advertising. It answers the questions “why we are doing
advertising?” every company has its own advertising objective
whether it is new or existence our advertising objective are:
To create consumer awareness.
To occupy a favorable image in the minds of target
market.
To attract the consumers.
To encourage immediate sale.
2. Money :-
It refers to how much amount to be spent
behind advertising. The cost of advertising is different
products. It is high for those products which are highly
substituble.
As far as our product is concerned following are the factor
to be considered while deciding the advertising budget.
I. Stage of product life cycle :-
The stage in product life cycle determines to extent to
which advertising is to be done. As our company is new
in the market, we have to provide a handsome amount
of money behind advertising.
II. Market share consumer base ;-
For a nearly established company to build a good
market share. It has to spend a large amount on
advertising.
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III. Competition and clutter :-
As our product has many competitors in the market, we
have to advertise heavily to be heard.
IV. Advertising frequency :-
It refers to no. of repetition needed to put across the
brand‟s message to have a consistent image in the
minds of target market.
V. Product substitutability :-
3. Message :-
The impact of message largely depends on how it is sold
than on what is said and hence the message generation plays
an important role in the company‟s image or reputation.
Message: Just one taste and you'll never go back
4. Media :-
It refers to the means through which advertiser
communicates the message to the product to the product
cosumers in orders to attract them and therby accomplishing
the objectives of advertising.
The following are the advertising media that we have used
for marketing our product:
1) Yellow pages :-
In yellow pages producers and manufacturers given regard,
give company‟s name, address and contact which helps the
potential consumers to communicate and to build relation.
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2) Industrial magazine :-
Industrial magazine is a magazine available with of the
industrial concerns in which the details of the products
manufactured by a particulars industry is shown.So,it is very
helpful to the consumers.
3) Website :-
As we are living in the world of interest, website is a good
source of communication.Anybody sitting at one hand can
have the information about the company manufacturing at
another hand.
4) Pamphlets :-
It refers to giving details about product company name and
address in brief in one or two pages and send it to potential
consumers.
5) Newspaper :-
It is one most popular form of advertising in india.Newspaper
are timely and flexible and it is possible to change and
advertise. We will advertise times of India, divyabhaskar,
Gujarat Samachar.
5. Measurement :-
It refers to impact of advertising non potential consumers.
As we are in direct selling, potential sales will definitely say or
reveal the effectiveness of advertising.
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MARKET RESEARCH
SOURCE OF DATA
PRIMARY DATA:
Primary data is the raw data we can get from producers,
consumers, dealers, suppliers etc. The primary source is costly but reliable.
We have used questionnaire method for gathering information.
SECONDARY DATA:
This kind of data can be found at libraries, university, and internet
or inside the company. Secondary data is also available in the media like
newspaper and magazines. It can also be purchased from firm specializing in
providing secondary data.
RESEARCH AAPROCH:
The following approach can be used
Exploratory approach
Focus group approach
Descriptive approach
Behavioral approach
Experience approach
We have used SURVEY research approach.
RESEARCH INSTRUMENT:
Questionnaire
Quantitative measure
Mechanical device
Psychological tool
We have used QUESTIONNAIRE in our project.
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SAMPLING PLAN:
Sampling unit: People of Ahmadabad.
Sampling size: 200 questionnaires.
Sampling procedure: Simple random sampling.
Research instrument: Questionnaire.
Collection method: Personal interview.
ADVERTISING DETAILS:
NEWSPAPER IMAGE PAGE TOTAL
AMOUNT
Gujarat Samachar Color Last 44007
Divya Bhsaker Color Last 22000
Times of India Color Last 66007
Total 132014
T.V
Star plus 120000
HORDINGS 100000
Total 220000
TOTAL 652014
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K.S.SCHOOL OF BUSINESS MANAGEMENT,
GUJRAT UNIVERSITY, AHMEDABAD – 9
MARKET SURVEY OF ICE-CREAM
(1) Name :- ____________________________________
(2) Gender :-
[ ] male [ ] female
(3) Age :-
[ ] up to 18 [ ] 18 to 30
[ ] 30 to 50 [ ] 50 and above
(4) Occupation :-
[ ] student [ ] business
[ ] service [ ] retired
[ ] house wife [ ] profession
[ ] other
(5) Income level (monthly) :-
[ ] up to 10,000 [ ] 10,000 to 25,000
[ ] 25,000 to 40,000 [ ] 40,000 and above
(6) Do you prefer ice-cream?
[ ] yes [ ] no
If „yes‟ continue with section „A‟ otherwise go to section „B‟.
SECTION - A
(1) Which of the following ice-cream brand do you prefer?
[ ] Amul [ ] Havmor
[ ] Vadilal [ ] Go-cool
[ ] Madhur [ ] Others
(2) How do you come to know about the ice-cream brand?
[ ] TV advertisement [ ] newspaper
[ ] magazine [ ] friends and relatives
[ ] others
(3) How would you rank to the ice-cream brand?
[ ] Amul [ ] Havmor
[ ] Vadilal [ ] Go-cool
[ ] Madhur [ ] others
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(4) Which aspects do you keep in mind while purchasing ice-cream?
[ ] price [ ] quality [ ] availability
[ ] taste [ ] brand name
[ ] advertisement [ ] variety
(5) Which flavor do you prefer most?
[ ] chocolate [ ] butter scotch
[ ] kaju badam [ ] vanilla
[ ] seasonal [ ] other specify __________________
(6) In which form do you prefer ice-cream?
[ ] candy [ ] cone
[ ] cup [ ] family pack
[ ] other
(7) From where you purchase ice-cream?
[ ] retail market [ ] ice-cream parlor
[ ] super market [ ] other location
(8) Price of ice-cream :-
[ ] satisfied [ ] highly satisfied
[ ] dis-satisfied [ ] average
(9) Do you agree that the price of the ice-cream is suitable for the quality?
[ ] yes [ ] no
[ ] not sure
(10) How frequently do you eat ice-cream?
[ ] daily [ ] weekly
[ ] monthly [ ] occasionally
(11) Are you calorie conscious?
[ ] yes [ ] no
[ ] not sure
(12) If our company introduce low calorie ice-cream, would you prefer
it?
[ ] yes [ ] no
[ ] not sure
(13) What do you expect in ice-cream?
[ ] calories [ ] vitamins
[ ] flavors [ ] other specify _________________
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SECTION – B
(1) Why do you not eat ice-cream?
[ ] health problem
[ ] price problem
[ ] don‟t like
[ ] other specify __________________
(2) Would you like to eat ice-cream in future?
[ ] yes [ ] no
[ ] not sure
Any suggestion: - _______________________________________
_____________________________________________________
_____THANK YOU_____
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GRAPHICAL PRESENTATION
1. CLASSIFICATION BY GENDER
GENDER MALE FEMALE TOTAL
TOTAL 102 98 200
In our survey most of the ice-cream consumers were both male and
female.51% out of 100% were male and 49% were female.
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2. CLASSIFICATION BY AGE AND GENDER
AGE/GENDER MALE FEMALE TOTAL
UP TO 18 22 22 44
18 TO 30 37 52 89
30 TO 50 28 17 45
50 AND ABOVE 15 7 22
TOTAL 102 98 200
Most of the ice-cream consumers were from age group of 18 to 30
years. 89 out of 200 were having age between 18 to 30 years whereas only
22 consumers were having age more than 50 years.
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3. COMPARISION BETWEEN GENDER & OCCUPATION
OCCUPATION/GENDER MALE FEMALE TOTAL
STUDENT 43 52 95
BUSINESS 18 2 20
SERVICE 20 10 30
RETIRED 8 3 11
HOUSE WIFE - 26 26
PROFESSION 12 3 15
OTHER 1 2 3
TOTAL 102 98 200
Majority of the students were eating more ice-cream that was
approximately 50% in comparison with other occupation.
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4. COMPARISION BETWEEN GENDER & INCOME LEVEL
INCOME/GENDER MALE FEMALE TOTAL
UP TO 10000 19 15 34
10000 TO 25000 42 48 90
25000 TO 40000 24 20 44
40000 AND ABOVE 17 15 32
TOTAL 102 98 200
All through it is clearly seen that majority of the ice cream eaters
are earning from 10,000 to 25,000 per month.
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5. COMPARISION BETWEEN GENDER & PEOPLE WHO PREFER ICE-
CREAM
YES/NO/GENDER MALE FEMALE TOTAL
YES 87 77 164
NO 15 21 36
TOTAL 102 98 200
Having surveyed randomly, almost 76% people are eating ice-cream
while only 24% people are not eating it because of certain reasons.
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6. ANALYSIS BASED ON GENDER & ICE-CREAM BRAND
BRAND/GENDER MALE FEMALE TOTAL
AMUL 26 34 60
VADILAL 19 14 33
MADHUR 5 7 12
HAVMOR 31 21 52
ASHARFI 6 1 7
TOTAL 87 77 164
60 people out of 164 people prefer to ice cream of Amul brand then
any other brand while only 6 people eat ice-cream of Asharfi.
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7. ANALYSIS BASED ON INCOME & ICE-CREAM BRANDS
BRAND/INCOME UP TO
10000
10000 TO
25000
25000 TO
40000
40000 &
ABOVE
TOTAL
AMUL 8 22 11 19 60
VADILAL 5 18 8 2 33
MADHUR 3 7 2 - 12
HAVMOR 5 11 20 16 52
ASHARFI 1 5 1 - 7
TOTAL 22 63 42 37 164
Havmor and Amul are more demandable in the income group of
10,000 and more than that.
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8. ANALYSIS BASED ON AGE & ICE-CREAM BRAND
BRAND/AGE UP TO 18 18 TO 30 30 TO 50 50 and
Above
TOTAL
AMUL 15 26 11 8 60
VADILAL 8 19 5 1 33
MADHUR 5 4 3 0 12
HAVMOR 13 21 12 6 52
ASHARFI 2 3 2 0 7
TOTAL 43 33 33 15 164
People in the age group of 18 to 30 are eating ice-cream of Amul and
Havmor as they are very brand conscious.
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9. ANALYSIS BASED ON GENDER & SOURCE OF ACKNOWLEDGEMENT
MALE FEMALE TOTAL
T.V 37 32 69
NEWSPAPER 22 11 33
MAGAZINE 0 0 0
FRIENDS 19 30 49
OTHERS 9 4 13
Majority of the people come to know about the ice-cream from T.V.
and their friends.
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10. ANALYSIS BASED ON SOURCE OF ADVERTISEMENT & ICE-
CREAM BRAND
T.V NEWSPAPER FRIENDS OTHER TOTAL
AMUL 36 16 7 1 60
VADILAL 15 6 11 1 33
MADHUR 0 0 10 2 12
HAVMOR 18 11 14 3 52
ASHARFI 0 0 7 0 7
TOTAL 69 33 49 13 164
People who are eating ice-cream of Amul and Havmor, they come to
know about brand from T.V. and Newspaper. As Ashrafi and Madhur are
not using T.V. and Newspaper as a tool of advertisement so their eaters
come to know from their friends.
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11. ANALYSIS BASED ON ICE-CREAM BRAND & ASPECT
BRAND PRICE QUALITY BRAND VARITY TOTAL
AMUL 5 15 29 11 60
VADILAL 7 20 3 3 33
MADHUR 9 1 0 2 12
HAVMOR 8 18 21 5 52
ASHARFI 5 0 0 2 7
TOTAL 34 54 53 23 164
Majority of the people who are eating ice-cream of Amul and Havmor,
they are eating that because its brand whereas consumers of Madhur and
Ashrafi are prefering because of its price.
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12. ANALYSIS BASED ON FLAVOUR & ICE-CREAM BRAND
BRAND CHOCOLATE BUTTER
SCOTCH
KAJU VENILA SEASONAL OTHER TOTAL
AMUL 11 23 13 2 4 7 60
VADILAL 10 15 5 3 0 0 33
MADHUR 0 2 6 0 0 4 12
HAVMOR 13 10 6 16 6 1 52
ASHARFI 0 3 2 0 0 2 7
TOTAL 34 53 32 21 10 14 164
In Amul, Vadilal and Havmor, chocolate and butterscotch flavors are
more popular in comparision with others flavours.
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13. ANALYSIS BASED ON BRAND & FORM OF ICE-CREAM
BRAND CANDY CONE CUP FAMILY
PACK
OTHER TOTAL
AMUL 8 15 30 6 1 60
VADILAL 6 14 7 4 2 33
MADHUR 8 0 4 0 0 12
HAVMOR 5 17 15 13 2 52
ASHARFI 3 0 4 0 0 7
TOTAL 30 46 60 23 5 164
In case of Amul and Vadilal, majority of cones and cups are more
demandable whereas majority of family packs of Havmor are preferable.
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14. ANALYSIS BASED ON BRAND & PLACE OF PURCHSAE
BRAND RETAIL.MKT ICECREAM
PARLOR
SUPER
MKT.
OTHER TOTAL
AMUL 20 31 6 3 60
VADILAL 12 11 1 9 33
MADHUR 3 2 0 7 12
HAVMOR 10 38 3 1 52
ASHARFI 2 0 0 5 7
TOTAL 47 82 10 25 164
Majority of the people ice cream consumer of Amul, Vadilal and
Havmor are purchasing it from retail shop and ice cream parlor. While
remaining people purchase from others.
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15. ANALYSIS BASED ON BRAND & PRICE
BRAND SATISHFIED HIGHLY
SATISHFIED
DIS
SATISHFIED
AVERAGE TOTAL
AMUL 44 7 2 7 60
VADIILAL 30 1 1 1 33
MADHUR 6 1 2 4 12
HAVMOR 49 2 0 1 52
ASHARFI 3 1 1 2 7
TOTAL 132 12 6 15 164
Majority of the ice cream consumers are satisfied with the currunt
prices of the ice-cream, only 6 out of 164 are dissatisfied with the prices.
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16. ANALYSIS BASED ON BRAND & PRICE SATISFACTION
BRAND YES NO NOT SURE TOTAL
AMUL 40 11 9 60
VADILAL 23 4 6 33
MADHUR 7 0 5 12
HAVMOR 30 14 8 52
ASHARFI 5 1 1 7
TOTAL 105 30 29 164
Majority of the people are satisfied with price that is 105 out of 164.
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17. ANALYSIS BASED ON CONSUMPTION FREQUANCY & BRAND
BRAND DAILY WEEKLY MONTHLY OCCASSIONALY TOTAL
AMUL 1 43 9 7 60
VADILAL 2 10 15 6 33
MADHUR 0 0 3 9 12
HAVMOR 2 39 7 4 52
ASHARFI 0 1 4 2 7
TOTAL 5 93 38 28 164
Majority of the people eat ice cream once in a week time. Only 5
people out of 164 people are eating ice cream daily.
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18. ANALYSIS BASED ON CONSUMPTION FRIQUANCY & AGE
UP TO
18
18 TO 30 30 TO 50 50 &
ABOVE
TOTAL
DAILY 1 4 0 0 5
WEEKLY 39 34 17 3 93
MONTHLY 0 22 9 7 38
OCCASSIONALY 3 13 7 5 28
OTHERS 0 0 0 0 0
TOTAL 43 73 33 15 164
Majority of the people eat ice cream once in a week time that is in the
age group from 18 to 30.
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19. ANALYSIS BASED ON CALORIE CONSCIOUS & GENDER
GENDER MALE FEMALE TOTAL
YES 5 41 46
NO 53 8 61
NOT SURE 29 28 57
TOTAL 87 77 164
Majority of the female are very calorie conscious that is 41
Out of 77 and male are not calorie conscious.
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20. ANALYSIS BASED ON GENDER & DEMAND FOR LOW CALORIE
ICE-CREAM
GENDER MALE FEMALE TOTAL
YES 4 35 39
NO 24 6 30
NOT SURE 59 36 95
TOTAL 87 77 164
Majority of the female are demanding less caloried ice cream because
of health problems. And almost half of the people are not sure about it.
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21. ANALYSIS BASED ON EXPECTATION & GENDER
GENDER MALE FEMALE TOTAL
CALORIES 1 19 20
VITAMINS 1 8 9
FLAVOURS 82 49 131
OTHERS 3 1 4
TOTAL 87 77 164
Majority of the people are expecting flavors than any other things
whereas female are more conscious about calorie as well as flavours.
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22. ANALYSIS BASED ON REASON FOR NOT EATING & GENDER
GENDER MALEW FEMALE TOTAL
HEALTH
PROBLEM
11 15 26
PRICE 1 0 1
DON‟T LIKE 3 6 9
OTHERS 0 0 0
TOTAL 15 21 36
Main reason behind the people not eating the ice cream is health
problems and very less people are not eating ice cream because of price and
they don‟t like.
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23. ANALYSIS BASED ON REASON & AGE GROUP
REASON UP TO18 18 TO 30 30 TO 50 50 &
ABOVE
TOTAL
HEALTH
PROBLEM
3 16 0 2 21
PRICE 1 2 2 1 6
DON‟T LIKE 2 6 1 0 9
OTHER 0 0 0 0 0
TOTAL 6 24 3 3 36
Main reason behind the people not eating the ice cream is health
problems and that is mainly in the age group of 18 to 30.
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24. ANALYSIS BASED ON GENDER & FUTURE DEMAND
GENDER MALE FEMALE TOTAL
YES 6 9 15
NO 4 4 8
NOT SURE 5 8 13
TOTAL 15 21 36
Majority of the people are willing to eat ice cream in future.
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K.S.SCHOOL OF BUSINESS MANAGEMENT,
GUJRAT UNIVERSITY, AHMEDABAD – 9
DELEAR SURVEY OF ICE-CREAM INDUSTRY
(1) Name:____________________________________
(2) Area :____________________________________
(3) Experience in this field:______________________
_________________________________________
(4) What kind of ice cream do you sell?
_________________________________________
(5) How many kg ice-creams do you sale in a year?
_________________________________________
(6) What types of promotional schemes attract you?
_________________________________________
(7) What kind of firm is yours?
[ ] Partnership [ ] Company
[ ] Proprietorship
(8) How do you manage to get funds?
[ ] Bank specify____________ [ ] own
[ ] Issue share
(9) What is your annual turn-over?
[ ] 1 to 25 Lakhs [ ] 25 to 50 Lakhs
[ ] 50 to 75 Lakhs [ ] 75 to 1 Crore
[ ] Above 1 Crore
(10) How much is your working capital?
_______________________________________
(11) How many workers are working for you?
_______________________________________
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(12) Who are your suppliers for raw-material?
_______________________________________
_______________________________________
(13) How many credit period you get?
_______________________________________
(14) From where did you buy machinery?
[ ] India [ ] Germany
[ ] China [ ] Any other specify ___________
(15) Have you ever found any complaints from your customers?
[ ] Yes [ ] No
If yes then, specify________________________
(16) How do you market yourself? How much it cost?
[ ] Advertisement in newspaper [ ] Advertisement in TV or radio
[ ] Word of mouth [ ] Any other
(17) What are the working hours?
_______________________________________
(18) What is your normal rate of wastage?
[ ] Up to 5% [ ] 5% to 10% [ ] Above 10%
(19) What is your profit margin approximately?
[ ] Up to 10% [ ] 10% to 25% [ ] 25% to 40%
[ ] 40% to 60% [ ] 60% and above
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DELEAR SURVEY OF ICE CREAM INDUSTRY
1. What kind of ice cream do you sell?
Particular No. of dealer
Havmor 3
Vadilal 3
Amul 2
Mix 2
Total 10
Majority of the dealers are selling ice-cream of Havmor and Vadilal.
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2. What types of promotional schemes attract you?
Particular No. of dealer
Festival Offer 2
Sunday Offer 1
Bulk offer 3
Home Delivery 4
Total 10
Most of the dealers are attracted by the home delivery scheme to
increase their sell of ice-cream.
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3. What Kind of firm is yours?
Particular No. of dealer
Proprietorship 3
Partnership 3
Company 4
Total 10
In our dealers survey we can found that most of dealers are company
organization.
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4. How do you manage to get funds?
Particular No. of dealer
Bank 4
Own 2
Issue of Shares 3
Relatives 1
Total 10
In our dealers survey, we came to know that most of the dealers get
funds from the bank.
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5. What is your annual turnover?
Particular No. of dealer
Below 25 lacs 5
25-50 lacs 2
50-75 lacs 2
75 lacs and
above 1
Total 10
Majority of the dealer‟s turnover is below 25lakhs.
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6. From where did you buy machinery?
Particular No. of dealer
India 3
China 4
Germany 3
others 0
Total 10
China is most popular for ice-cream machinery in the dealers because
of low cost.
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7. Have you ever found any complaints from your customers?
Particular No. of dealer
Yes 2
No 8
Total 10
From our dealers survey, dealers are getting very less complaints
because of their good service.
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8. How do you market your Products?
Particular No. of dealer
Advertise in News paper 3
Advertise in TV or Radio 4
Word of Mouth 1
Any other 2
Total 10
For marketing of ice cream, most of the dealers are using
advertisement in TV and Radio.
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9. What is your normal rate of wastage?
Particular No. of dealer
Up to 5% 4
5%-10% 4
10% and above 2
Total 10
Most of the waste of the dealers is up to 10%.
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10. What is your Profit margin approximately?
Particular No. of dealer
Up to 10% 2
10% to 25% 2
25% to 40% 4
Above 40% 2
Total 10
Majority of the dealers profit margin is from 25 to 40%.
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COST OF PROJECT
Particulars Amount
Land & Building 42,00,000
Plant & Machinery 97,84,000
Furniture 1,86,400
Vehicle 4,57,880
Total Cost 1,46,28,280
SOURCES OF FINANCE
Particulars Amount
Partner‟s Capital 90,00,000
Loan From IDBI Bank 54,45,198
Loan from relatives 1,83,082
Total 1,46,28,280
DETAILS OF EXPENSES
LAND AND BUILDING
Particulars Sq. Ft. Rate(including
Construction
Charges)
Total
Land and Building in Naroda 800 5,250 42,00,000
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FURNITURE & FIXTURE
Particulars Units Amt. Total
Computer 2 20,000 40,000
Printer 1 4,000 4,000
Telephone 3 1,000 3,000
Air Conditioner 2 17,000 34,000
Water Purifier 1 2,000 2,000
Tube light 40 125 5,000
Fans 12 1,200 14,400
Exhaust Fans 7 500 3,500
Chair 30 250 7,500
Sofa Set 3 15,000 45,000
Cup-Board 2 4,000 8,000
Table 4 5,000 20,000
Total - - 1,86,400
PLANT & MACHINERY
Particulars Units Amt. Total
Milk Testing Machine 1 7,50,000 7,50,000
Milk Tank 2 2,50,000 5,00,000
Pasteurizers 2 4,00,000 8,00,000
Packing Machine 3 4,00,000 12,00,000
Mix Tank 3 3,50,000 10,50,000
Freezer 1 2,00,000 2,00,000
Chiller 3 2,50,000 7,50,000
Cold Storage 1 30,00,000 30,00,000
Cone Machine 1 1,00,000 1,00,000
Candy Machine 1 80,000 80,000
Cup Filling Machine 1 85,000 85,000
Aging Volt 1 9,00,000 9,00,000
Label Machine 1 1,65,000 1,65,000
Label Diesel Generator 1 1,50,000 1,50,000
Plastic Carat 1 40,000 40,000
Installation Charges - - 50,000
Total - - 97,84,000
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OTHER ASSETS:
Particulars Units Amt.
Vehicle 1 4,57,880
Total 4,57,880
REPAIRS AND MAINTANANCE:
Year Amount Percentage Total
1 97,84,000 1% 97,840
2 83,16,400 1.3529% 1,12,516
3 70,68,940 1.83% 1,29,393
4 60,08,599 2.48% 1,48,802
5 51,07,309 3.335% 1,71,123
INSURANCE
Particulars Rate Amt. Year
1 2 3 4 5
Building
Plant & Machinery
Total 212,566 181,067 154,255 131,430 111,997
DEPRICIATION
Particulars Year
1 2 3 4 5
Plant & Machinery 9784000 8316400 7068940 6008599 5107309.15
Less: Depri. @ 15% 1467600 1247460 1060341 901289.85 766096.3725
Closing Balance 8316400 7068940 6008599 5107309.15 4341212.778
Furniture 186400 167760 150,984 135,886 122,297
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Less: Depri. @ 10% 18640 16776 15,098 13,589 12,230
Closing Balance 167760 150984 135,886 122,297 110,067
Building 200000 180000 162,000 145,800 131,220
Less: Depri. @ 10% 20000 18000 16,200 14,580 13,122
Closing Balance 180000 162000 145,800 131,220 118,098
Vehicle 457880 389198 330,818 281,196 239,016
Less: Depri. @ 15% 68682 58379.7 49,623 42,179 35,852
Closing Balance 389198 330818.3 281,196 239,016 203,164
Total Depri. 1,574,922 1,340,616 1,141,262 971,638 827,301
PRODUCTION CAPACITY:
Year Percentage
1 50%
2 60%
3 75%
4 90%
5 95%
FACTORY OVERHEAD:
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Salary to
Supervisor 84,000 92,400 102,480 113,400 134,400
Salary to
Gatekeeper 36,000 39,600 43,200 46,800 50,400
Salary to Sweeper 30,000 33,000 36,000 39,000 42,000
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Bonus 5,600 6,300 7,700 8,400 9,100
Power and Fuel 684,000 861,840 1,131,165 1,425,268 1,579,672
Repairs and
Maintenance 97,840 112,516 129,393 148,802 171,123
Insurance 212,566 181,067 154,255 131,430 111,997
On Plant &
Machinery 1,467,600 1,247,460 1,060,341 901,290 766,096
Total 2,405,040 2,393,116 2,510,279 2,682,960 2,752,791
Office & Administration Overhead:
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Interest on Capital &
Salary to Partners 1230000 1355491 1701029 2052902 2412587
On Furniture &
Fixtures 18,640 16,776 15,098 13,589 12,230
ON BUILDING 20,000 18,000 16,200 14,580 13,122
On Vehicles 68,682 58,380 49,623 42,179 35,852
Int.on Loan
(Secured) 544,520 463,562 344,676 266,057 186,174
Stationery & Printing 8,420 9,009 9,640 10,315 11,037
Computer Expenses 10,215 10,726 11,262 11,825 12,416
Electricity (Office) 25,358 27,387 29,578 31,944 34,499
Telephone 6,541 6,672 6,805 6,941 7,080
Audit Fees 5,000 6,000 7,500 8,500 11,000
Misc. Expenses 7,000 8,250 9,370 10,280 11,360
Total Administrative
Expenses 1,944,376 1,980,252 2,200,781 2,469,112 2,747,358
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WORKING CAPITAL STATEMENT:
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
Raw Material 631,959 743,632 950,969 1,148,468 1,255,531
Work in
Progress 38,360 45,643 56,595 68,848 75,485
Finished Goods 639,721 745,605 901,444 1,080,727 1,175,352
Total Value of
Inventories 1,310,040 1,534,880 1,909,008 2,298,043 2,506,368
Sundry Debtors 720,154 1,003,799 1,369,070
Cash & Bank
Balances
40,257 35,044 40,268
Total Current
Assets 2,070,451 2,573,723 3,318,346 3,959,290 4,866,041
Less:
Sundry
Creditors For
Goods 386,000 486,360 638,348 804,318 891,453
Sundry
Creditors For
Expense 137,759 152,652 174,975 201,001 273,202
Total Current
Liabilities 523,759 639,012 813,323 1,005,319 1,164,654
Working
Capital 1,546,691 1,934,711 2,505,023 2,953,972 3,701,387
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Cost sheet
Capacity 50% 60% 75% 90% 95%
Particulars 2010-11 2011-12 2012-13 2013-14 2014-15
Consumption of Raw Material
Op. Stock of R.M. 0 89,077 112,237 147,311 185,612
Purchase of R.M. 4,632,000 5,836,320 7,660,170 9,651,814 10,697,430
Expnses related to Purchase
Carriage Inward 92,640 116,726 153,203 193,036 213,949
Transport Charges 231,600 291,816 383,009 482,591 534,872
Other Charges 46,320 58,363 76,602 96,518 106,974
Total Expenses 370,560 466,906 612,814 772,145 855,794
Less: Cl. Stock Of R.M. 631,959 743,632 950,969 1,148,468 1,255,531
Consumption of Raw Material 4,370,601 5,648,671 7,434,252 9,422,802 10,483,305
Direct Expenses
Direct Labour 225,000 288,000 384,000 459,000 540,000
Prime Cost 4,595,601 5,936,671 7,818,252 9,881,802 11,023,305
Factory Overhead
Salary to Supervisor 84,000 92,400 102,480 113,400 134,400
Salary to Gatekeeper 36,000 39,600 43,200 46,800 50,400
Salary to Sweeper 30,000 33,000 36,000 39,000 42,000
Bonus 5,600 6,300 7,700 8,400 9,100
Power and Fuel 684,000 861,840 1,131,165 1,425,268 1,579,672
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Repairs and Maintenance 97,840 112,516 129,393 148,802 171,123
Insurance 212,566 181,067 154,255 131,430 111,997
Depreciation
On Plant & Machinery 1,467,600 1,247,460 1,060,341 901,290 766,096
Total Depreciation 1,467,600 1,247,460 1,060,341 901,290 766,096
Factory Overhead 2,405,040 2,393,116 2,510,279 2,682,960 2,752,791
Total Factory Cost 7,000,641 8,329,787 10,328,531 12,564,762 13,776,096
Add : Op. Stock Work in Progress 38,360 45,643 56,595 68,848
Less: Cl. Stock of Work In
Progress 38,360 45,643 56,595 68,848 75,485
Cost of Production 6,962,281 8,322,504 10,317,579 12,552,509 13,769,459
Administrative Expenses
Interest on Capital & Salary to
Parteners 1230000 1355491 1701029 2052902 2412587
On Furniture & Fixtures 18,640 16,776 15,098 13,589 12,230
On Other assets 20,000 18,000 16,200 14,580 13,122
On Vehicles 68,682 58,380 49,623 42,179 35,852
Int.on Loan (Secured) 544,520 463,562 344,676 266,057 186,174
Stationery & Printing 8,420 9,009 9,640 10,315 11,037
Computer Expenses 10,215 10,726 11,262 11,825 12,416
Electricity (Office) 25,358 27,387 29,578 31,944 34,499
Telephone 6,541 6,672 6,805 6,941 7,080
Audit Fees 5,000 6,000 7,500 8,500 11,000
Misc. Expenses 7,000 8,250 9,370 10,280 11,360
Total Administrative Expenses 1,944,376 1,980,252 2,200,781 2,469,112 2,747,358
Cost of Production of Finished
Goods 8,906,657 10,302,756 12,518,360 15,021,621 16,516,816
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Add : Op. Stock of Finished
Goods 0 639,721 745,605 901,444 1,080,727
Less : Cl. Stock of Finished
Goods 639,721 745,605 901,444 1,080,727 1,175,352
Cost of Production of Goods
Sold 8,266,936 10,196,872 12,362,521 14,842,338 16,422,191
Selling & Distribution Exp.
Packing Exp. 181,860 218,232 272,790 327,348 345,534
Carriage Outward 52,012 62,414 78,018 93,622 98,823
Cash Discount to Distributor
Advertisement 352,014 334,413 317,693 301,808 286,718
Total Selling & Distribution
Expenses 585,886 615,060 668,501 722,778 731,074
Total Cost 8,852,822 10,811,931 13,031,021 15,565,116 17,153,266
Profit / (Loss) -210,976 33,660 264,019 498,602 738,390
Sales 8,641,846 10,845,591 13,295,040 16,063,718 17,891,656
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PRODUCT WISE COST SHEET FOR 2010-11
Capacity 25 35 30 10
Particulars Candy cup family pack Cone Total
Consumption of Raw Material
Op. Stock of R.M. 0
Purchase of R.M. 1158000 1621200 1389600 463200 4,632,000
Expnses related to Purchase
Carriage Inward 23160 32424 27792 9264 92,640
Transport Charges 57900 81060 69480 23160 231,600
Other Charges 11580 16212 13896 4632 46,320
Total Expenses 92640 129696 111168 37056 370,560
Less: Cl. Stock Of R.M. 157989.75 221185.65 189587.7 63195.9 631,959
Consumption of Raw Material 1092650.25 1529710.35 1311180 437060.1 4,370,601
Direct Expenses
Direct Labour 56250 78750 67500 22500 225,000
Prime Cost 1148900.25 1608460.35 1378680 459560.1 4,595,601
Factory Overhead
Salary to Supervisor 21000 29400 25200 8400 84,000
Salary to Gatekeeper 9000 12600 10800 3600 36,000
Salary to Sweeper 7500 10500 9000 3000 30,000
Bonus 1400 1960 1680 560 5,600
Power and Fuel 171000 239400 205200 68400 684,000
Repairs and Maintenance 24460 34244 29352 9784 97,840
Insurance 53141.4 74397.96 63769.68 21256.56 212,566
Depreciation
On Plant & Machinery 366900 513660 440280 146760 1,467,600
Total Depreciation 366900 513660 440280 146760 1,467,600
Factory Overhead 601260 841764 721512 240504 2,405,040
Total Factory Cost 1750160.25 2450224.35 2100192 700064.1 7,000,641
Add : Op. Stock Work in Progress
Less: Cl. Stock of Work In
Progress 9589.919178 13425.88685 11507.9 3835.968 38,360
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Cost of Production 1740570.331 2436798.463 2088684 696228.1 6,962,281
Administrative Expenses
Interest on Capital & Salary to
Parteners 307500 430500 369000 123000 1,230,000
On Furniture & Fixtures 4660 6524 5592 1864 18,640
ON BUILDING 5000 7000 6000 2000 20,000
On Vehicles 17170.5 24038.7 20604.6 6868.2 68,682
Int.on Loan (Secured) 136129.96 190581.944 163356 54451.98 544,520
Stationery & Printing 2105 2947 2526 842 8,420
Computer Expenses 2553.75 3575.25 3064.5 1021.5 10,215
Electricity (Office) 6339.5 8875.3 7607.4 2535.8 25,358
Telephone 1635.25 2289.35 1962.3 654.1 6,541
Audit Fees 1250 1750 1500 500 5,000
Misc. Expenses 1750 2450 2100 700 7,000
Total Administrative Expenses 486093.96 680531.544 583312.8 194437.6 1,944,376
Cost of Production of Finished
Goods 2226664.291 3117330.007 2671997 890665.7 8,906,657
Add : Op. Stock of Finished Goods 0 0 0 0 0
Less : Cl. Stock of Finished Goods 159930.25 223902.35 191916.3 63972.1 639,721
Cost of Production of Goods
Sold 2066734.041 2893427.657 2480081 826693.6 8,266,936
Selling & Distribution Exp.
Packing Exp. 45465 63651 54558 18186 181,860
Carriage Outward 13003 18204.2 15603.6 5201.2 52,012
Cash Discount to Distributor
Advertisement 88003.5 123204.9 105604.2 35201.4 352,014
Total Selling & Distribution
Expenses 146471.5 205060.1 175765.8 58588.6 585,886
Total Cost 2213205.541 3098487.757 2655847 885282.2 8,852,822
Profit / (Loss) -52744 -73841.6 -63292.8 -21097.6 -210,976
Sales 2160461.541 3024646.157 2592554 864184.6 8,641,846
Cost sheet for 2011-12
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Capacity 25 35 30 10
Particulars Candy cup Fam.pack Cone Total
Consumption of Raw Material
Op. Stock of R.M. 22269.23077 89,077
Purchase of R.M. 1459080 2042712 1750896 583632 5,836,320
Expnses related to Purchase
Carriage Inward 29181.6 40854.24 35017.92 11672.64 116,726
Transport Charges 72954 102135.6 87544.8 29181.6 291,816
Other Charges 14590.8 20427.12 17508.96 5836.32 58,363
Total Expenses 116726.4 163416.96 140071.7 46690.56 466,906
Less: Cl. Stock Of R.M. 185908 260271.2 223089.6 74363.2 743,632
Consumption of Raw Material 1412167.631 1977034.7 1694601 564867.1 5,648,671
Direct Expenses
Direct Labour 72000 100800 86400 28800 288,000
Prime Cost 1484167.631 2077834.7 1781001 593667.1 5,936,671
Factory Overhead
Salary to Supervisor 23100 32340 27720 9240 92,400
Salary to Gatekeeper 9900 13860 11880 3960 39,600
Salary to Sweeper 8250 11550 9900 3300 33,000
Bonus 1575 2205 1890 630 6,300
Power and Fuel 215460 301644 258552 86184 861,840
Repairs and Maintenance 28129 39380.6 33754.8 11251.6 112,516
Insurance 45266.79 63373.506 54320.15 18106.72 181,067
Depreciation
On Plant & Machinery 311865 436611 374238 124746 1,247,460
Total Depreciation 311865 436611 374238 124746 1,247,460
Factory Overhead 598279 837590.6 717934.8 239311.6 2,393,116
Total Factory Cost 2082446.631 2915425.3 2498936 832978.7 8,329,787
Add : Op. Stock Work in
Progress 9589.919178 13425.887 11507.9 3835.968 38,360
Less: Cl. Stock of Work In
Progress 11410.66647 15974.933 13692.8 4564.267 45,643
Cost of Production 2080625.883 2912876.2 2496751 832250.4 8,322,504
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Administrative Expenses
Interest on Capital & Salary to
Parteners 338872.75 474421.85 406647.3 135549.1 1,355,491
On Furniture & Fixtures 4194 5871.6 5032.8 1677.6 16,776
ON BUILDING 4500 6300 5400 1800 18,000
On Vehicles 14594.925 20432.895 17513.91 5837.97 58,380
Int.on Loan (Secured) 115890.466 162246.65 139068.6 46356.19 463,562
Stationery & Printing 2252.35 3153.29 2702.82 900.94 9,009
Computer Expenses 2681.4375 3754.0125 3217.725 1072.575 10,726
Electricity (Office) 6846.66 9585.324 8215.992 2738.664 27,387
Telephone 1667.955 2335.137 2001.546 667.182 6,672
Audit Fees 1500 2100 1800 600 6,000
Misc. Expenses 2062.5 2887.5 2475 825 8,250
Total Administrative Expenses 495063.0435 693088.26 594075.7 198025.2 1,980,252
Cost of Production of Finished
Goods 2575688.927 3605964.5 3090827 1030276 10,302,756
Add : Op. Stock of Finished
Goods 159930.3576 223902.5 191916.4 63972.14 639,721
Less : Cl. Stock of Finished
Goods 186401.3481 260961.89 223681.6 74560.54 745,605
Cost of Production of Goods
Sold 2549217.936 3568905.1 3059062 1019687 10,196,872
Selling & Distribution Exp.
Packing Exp. 54558 76381.2 65469.6 21823.2 218,232
Carriage Outward 15603.6 21845.04 18724.32 6241.44 62,414
Cash Discount to Distributor
Advertisement 83603.325 117044.66 100324 33441.33 334,413
Total Selling & Distribution
Expenses 153764.925 215270.9 184517.9 61505.97 615,060
Total Cost 2702982.861 3784176 3243579 1081193 10,811,931
Profit / (Loss) 8415 11781 10098 3366 33,660
Sales 2711397.861 3795957 3253677 1084559 10,845,591
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Cost sheet for 2012-13
Capacity 25 35 30 10
Particulars Candy cup Fam.pack Cone Total
Consumption of Raw Material
Op. Stock of R.M. 28059.2308 39282.9231 33671.077 11223.69 112,237
Purchase of R.M. 1915042.5 2681059.5 2298051 766017 7,660,170
Expnses related to Purchase
Carriage Inward 38300.85 53621.19 45961.02 15320.34 153,203
Transport Charges 95752.125 134052.975 114902.55 38300.85 383,009
Other Charges 19150.425 26810.595 22980.51 7660.17 76,602
Total Expenses 153203.4 214484.76 183844.08 61281.36 612,814
Less: Cl. Stock Of R.M. 237742.25 332839.15 285290.7 95096.9 950,969
Consumption of Raw Material 1858562.88 2601988.03 2230275.5 743425.2 7,434,252
Direct Expenses
Direct Labour 96000 134400 115200 38400 384,000
Prime Cost 1954562.88 2736388.03 2345475.5 781825.2 7,818,252
Factory Overhead
Salary to Supervisor 25620 35868 30744 10248 102,480
Salary to Gatekeeper 10800 15120 12960 4320 43,200
Salary to Sweeper 9000 12600 10800 3600 36,000
Bonus 1925 2695 2310 770 7,700
Power and Fuel 282791.25 395907.75 339349.5 113116.5 1,131,165
Repairs and Maintenance 32348.35 45287.69 38818.02 12939.34 129,393
Insurance 38563.7115 53989.1961 46276.454 15425.48 154,255
Depreciation
On Plant & Machinery 265085.25 371119.35 318102.3 106034.1 1,060,341
Total Depreciation 265085.25 371119.35 318102.3 106034.1 1,060,341
Factory Overhead 627569.85 878597.79 753083.82 251027.9 2,510,279
Total Factory Cost 2582132.73 3614985.82 3098559.3 1032853 10,328,531
Add : Op. Stock Work in Progress 11410.6665 15974.9331 13692.8 4564.267 45,643
Less: Cl. Stock of Work In
Progress 14148.6725 19808.1415 16978.407 5659.469 56,595
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Cost of Production 2579394.72 3611152.61 3095273.7 1031758 10,317,579
Administrative Expenses
Interest on Capital & Salary to
Parteners 425257.25 595360.15 510308.7 170102.9 1,701,029
On Furniture & Fixtures 3774.6 5284.44 4529.52 1509.84 15,098
ON BUILDING 4050 5670 4860 1620 16,200
On Vehicles 12405.6863 17367.9608 14886.824 4962.275 49,623
Int.on Loan (Secured) 86168.8961 120636.455 103402.68 34467.56 344,676
Stationery & Printing 2410.0145 3374.0203 2892.0174 964.0058 9,640
Computer Expenses 2815.50938 3941.71313 3378.6113 1126.204 11,262
Electricity (Office) 7394.3928 10352.1499 8873.2714 2957.757 29,578
Telephone 1701.3141 2381.83974 2041.5769 680.5256 6,805
Audit Fees 1875 2625 2250 750 7,500
Misc. Expenses 2342.5 3279.5 2811 937 9,370
Total Administrative Expenses 550195.163 770273.228 660234.2 220078.1 2,200,781
Cost of Production of Finished
Goods 3129589.89 4381425.84 3755507.9 1251836 12,518,360
Add : Op. Stock of Finished Goods 186401.348 260961.887 223681.62 74560.54 745,605
Less : Cl. Stock of Finished Goods 225361.053 315505.474 270433.26 90144.42 901,444
Cost of Production of Goods
Sold 3090630.18 4326882.26 3708756.2 1236252 12,362,521
Selling & Distribution Exp.
Packing Exp. 68197.5 95476.5 81837 27279 272,790
Carriage Outward 19504.5 27306.3 23405.4 7801.8 78,018
Advertisement 79423.1588 111192.422 95307.791 31769.26 317,693
Total Selling & Distribution
Expenses 167125.159 233975.222 200550.19 66850.06 668,501
Total Cost 3257755.34 4560857.48 3909306.4 1303102 13,031,021
Profit / (Loss) 66004.75 92406.65 79205.7 26401.9 264,019
Sales 3323760.09 4653264.13 3988512.1 1329504 13,295,040
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Cost sheet for 2013-14
Capacity 25 35 30 10
Particulars Candy cup Fam.pack Cone Total
Consumption of Raw Material
Op. Stock of R.M. 36827.74 51558.8365 44193.29 14731.096 147,311
Purchase of R.M. 2412953.5 3378134.9 2895544 965181.4 9,651,814
Expnses related to Purchase
Carriage Inward 48259.07 67562.698 57910.88 19303.628 193,036
Transport Charges 120647.68 168906.745 144777.2 48259.07 482,591
Other Charges 24129.535 33781.349 28955.44 9651.814 96,518
Total Expenses 193036.28 270250.792 231643.5 77214.512 772,145
Less: Cl. Stock Of R.M. 287117 401963.8 344540.4 114846.8 1,148,468
Consumption of Raw Material 2355700.5 3297980.73 2826841 942280.21 9,422,802
Direct Expenses
Direct Labour 114750 160650 137700 45900 459,000
Prime Cost 2470450.5 3458630.73 2964541 988180.21 9,881,802
Factory Overhead
Salary to Supervisor 28350 39690 34020 11340 113,400
Salary to Gatekeeper 11700 16380 14040 4680 46,800
Salary to Sweeper 9750 13650 11700 3900 39,000
Bonus 2100 2940 2520 840 8,400
Power and Fuel 356316.98 498843.765 427580.4 142526.79 1,425,268
Repairs and Maintenance 37200.603 52080.8435 44640.72 14880.241 148,802
Insurance 32857.401 46000.3611 39428.88 13142.96 131,430
Depreciation
On Plant & Machinery 225322.46 315451.448 270387 90128.985 901,290
Total Depreciation 225322.46 315451.448 270387 90128.985 901,290
Factory Overhead 670740.04 939036.056 804888 268296.02 2,682,960
Total Factory Cost 3141190.6 4397666.78 3769429 1256476.2 12,564,762
Add : Op. Stock Work in
Progress 14148.672 19808.1415 16978.41 5659.469 56,595
Less: Cl. Stock of Work In
Progress 17212.003 24096.8043 20654.4 6884.8012 68,848
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Cost of Production 3138127.2 4393378.12 3765753 1255250.9 12,552,509
Administrative Expenses
Interest on Capital & Salary to
Parteners 513225.5 718515.7 615870.6 205290.2 2,052,902
On Furniture & Fixtures 3397.14 4755.996 4076.568 1358.856 13,589
ON BUILDING 3645 5103 4374 1458 14,580
On Vehicles 10544.833 14762.7666 12653.8 4217.9333 42,179
Int.on Loan (Secured) 66514.362 93120.1064 79817.23 26605.745 266,057
Stationery & Printing 2578.7155 3610.20172 3094.459 1031.4862 10,315
Computer Expenses 2956.2848 4138.79878 3547.542 1182.5139 11,825
Electricity (Office) 7985.9442 11180.3219 9583.133 3194.3777 31,944
Telephone 1735.3404 2429.47653 2082.408 694.13615 6,941
Audit Fees 2125 2975 2550 850 8,500
Misc. Expenses 2570 3598 3084 1028 10,280
Total Administrative Expenses 617278.12 864189.368 740733.7 246911.25 2,469,112
Cost of Production of Finished
Goods 3755405.3 5257567.49 4506486 1502162.1 15,021,621
Add : Op. Stock of Finished
Goods 225361.05 315505.474 270433.3 90144.421 901,444
Less : Cl. Stock of Finished
Goods 270181.65 378254.316 324218 108072.66 1,080,727
Cost of Production of Goods
Sold 3710584.7 5194818.65 4452702 1484233.9 14,842,339
Selling & Distribution Exp.
Packing Exp. 81837 114571.8 98204.4 32734.8 327,348
Carriage Outward 23405.4 32767.56 28086.48 9362.16 93,622
Cash Discount to Distributor
Advertisement 75452.001 105632.801 90542.4 30180.8 301,808
Total Selling & Distribution
Expenses 180694.4 252972.161 216833.3 72277.76 722,778
Total Cost 3891279.1 5447790.81 4669535 1556511.7 15,565,117
Profit / (Loss) 124650.5 174510.7 149580.6 49860.2 498,602
Sales 4015929.6 5622301.51 4819116 1606371.9 16,063,719
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Cost sheet 2014-15
Capacity 25 35 30 10
Particulars Candy cup Fam.pack Cone Total
Consumption of Raw Material
Op. Stock of R.M. 46402.9519 64964.133 55683.542 18561.18 185,612
Purchase of R.M. 2674357.5 3744100.5 3209229 1069743 10,697,430
Expnses related to Purchase
Carriage Inward 53487.15 74882.01 64184.58 21394.86 213,949
Transport Charges 133717.875 187205.03 160461.45 53487.15 534,872
Other Charges 26743.575 37441.005 32092.29 10697.43 106,974
Total Expenses 213948.6 299528.04 256738.32 85579.44 855,794
Less: Cl. Stock Of R.M. 313882.75 439435.85 376659.3 125553.1 1,255,531
Consumption of Raw Material 2620826.3 3669156.8 3144991.6 1048331 10,483,305
Direct Expenses
Direct Labour 135000 189000 162000 54000 540,000
Prime Cost 2755826.3 3858156.8 3306991.6 1102331 11,023,305
Factory Overhead
Salary to Supervisor 33600 47040 40320 13440 134,400
Salary to Gatekeeper 12600 17640 15120 5040 50,400
Salary to Sweeper 10500 14700 12600 4200 42,000
Bonus 2275 3185 2730 910 9,100
Power and Fuel 394917.981 552885.17 473901.58 157967.2 1,579,672
Repairs and Maintenance 42780.6929 59892.97 51336.831 17112.28 171,123
Insurance 27999.2121 39198.897 33599.054 11199.68 111,997
Depreciation
On Plant & Machinery 191524.093 268133.73 229828.91 76609.64 766,096
Total Depreciation 191524.093 268133.73 229828.91 76609.64 766,096
Factory Overhead 688197.767 963476.87 825837.32 275279.1 2,752,791
Total Factory Cost 3444024.07 4821633.7 4132828.9 1377610 13,776,096
Add : Op. Stock Work in Progress 17212.0031 24096.804 20654.404 6884.801 68,848
Less: Cl. Stock of Work In
Progress 18871.3648 26419.911 22645.638 7548.546 75,485
Cost of Production 3442364.71 4819310.6 4130837.6 1376946 13,769,459
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Administrative Expenses
Interest on Capital & Salary to
Parteners 603146.75 844405.45 723776.1 241258.7 2,412,587
On Furniture & Fixtures 3057.426 4280.3964 3668.9112 1222.97 12,230
ON BUILDING 3280.5 4592.7 3936.6 1312.2 13,122
On Vehicles 8963.10832 12548.352 10755.73 3585.243 35,852
Int.on Loan (Secured) 46543.4274 65160.798 55852.113 18617.37 186,174
Stationery & Printing 2759.2256 3862.9158 3311.0707 1103.69 11,037
Computer Expenses 3104.09909 4345.7387 3724.9189 1241.64 12,416
Electricity (Office) 8624.81976 12074.748 10349.784 3449.928 34,499
Telephone 1770.04719 2478.0661 2124.0566 708.0189 7,080
Audit Fees 2750 3850 3300 1100 11,000
Misc. Expenses 2840 3976 3408 1136 11,360
Total Administrative Expenses 686839.403 961575.16 824207.28 274735.8 2,747,358
Cost of Production of Finished
Goods 4129204.11 5780885.8 4955044.9 1651682 16,516,816
Add : Op. Stock of Finished
Goods 270181.654 378254.32 324217.98 108072.7 1,080,727
Less : Cl. Stock of Finished
Goods 293838.113 411373.36 352605.74 117535.2 1,175,352
Cost of Production of Goods
Sold 4105547.65 5747766.7 4926657.2 1642219 16,422,191
Selling & Distribution Exp.
Packing Exp. 86383.5 120936.9 103660.2 34553.4 345,534
Carriage Outward 24705.7 34587.98 29646.84 9882.28 98,823
Cash Discount to Distributor
Advertisement 71679.4008 100351.16 86015.281 28671.76 286,718
Total Selling & Distribution
Expenses 182768.601 255876.04 219322.32 73107.44 731,074
Total Cost 4288316.25 6003642.8 5145979.5 1715327 17,153,265
Profit / (Loss) 184597.5 258436.5 221517 73839 738,390
Sales 4472913.75 6262079.3 5367496.5 1789166 17,891,655
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PROFIT AND LOSS ACCOUNT
Particulars 2010-11 2011-12 2012-13 2013-14 2014-15
Sales 8,641,846 10,845,591 13,295,040 16,063,718 17,891,656
Cl. Stock 1,310,040 1,534,880 1,909,008 2,298,043 2,506,368
Total 9,951,886 12,380,471 15,204,048 18,361,761 20,398,024
Op. Stock 0 767,158 903,485 1,105,350 1,335,187
Purcahse of Raw Material 4,632,000 5,836,320 7,660,170 9,651,814 10,697,430
Carriage Inward 92,640 116,726 153,203 193,036 213,949
Transport Charges 231,600 291,816 383,009 482,591 534,872
Other Charges 46,320 58,363 76,602 96,518 106,974
Salary & Wages 375,000 453,000 565,680 658,200 766,800
Bonus 5,600 6,300 7,700 8,400 9,100
Power & Fuel 709,358 889,227 1,160,743 1,457,212 1,614,171
Repairs & Main 97,840 112,516 129,393 148,802 171,123
Depreciation 1,574,922 1,340,616 1,141,262 971,638 827,301
Interest Expense 544,520 463,562 344,676 266,057 186,174
Stationery & Printing 8,420 9,009 9,640 10,315 11,037
Computer Expenses 10,215 10,726 11,262 11,825 12,416
Telephone 6,541 6,672 6,805 6,941 7,080
Audit Fees 5,000 6,000 7,500 8,500 11,000
Misc. Expenses 7,000 8,250 9,370 10,280 11,360
Packing Exp. 181,860 218,232 272,790 327,348 345,534
Carriage Outward 52012 62414.4 78018 93621.6 98822.8
Salary to Parteners 150,000 275,491 621,029 972,902 1,332,587
Advertisement 352,014 334,413 317,693 301,808 286,718
Interest on Capital 1080000 1080000 1080000 1080000 1080000
Profit -210,976 33,660 264,019 498,602 738,390
Total 9,951,886 12,380,471 15,204,048 18,361,761 20,398,024
Calculation of Salary
First 300000 or In case of
Loss 150000 270000 270000 270000 270000
On the balance 0 5,491 351,029 702,902 1,062,587
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BALANCE SHEET
Particulars Sche no. 2010-11 2011-12 2012-13 2013-14 2014-15
Sources of Fund
Partners' Capital A/c A 9,000,000 9,000,000 9,000,000 9,000,000 9,000,000
Partners' Current A/c 154,851 289,947 1,049,868 2,066,594 3,258,269
Loans & Fund
Secured Loan (IDBI
Bank @ 10%)
5,445,198 4,635,619 3,446,756 2,660,574 1,861,737
Sources of Funds 14,600,049 13,925,566 13,496,624 13,727,168 14,120,006
Application of Funds
Fixed Assets B
Op. Value 14,628,280 13,053,358 11,712,742 11,371,480 10,899,842
Less: Depreciation 1,574,922 1,340,616 1,141,262 971,638 827,301
WDV at the end of
year
13,053,358 11,712,742 10,571,480 10,399,842 10,072,542
Investments:
Shares of Relaince
Ltd.
0 278,112 420,120 400,145 522,449
Current Assets
Inventories C 1,310,040 1,534,880 1,909,008 2,298,043 2,506,368
Sundry Debtors 720,154 1,003,799 1,369,070 1,606,438 2,190,971
Cash & Bank Balances 40,257 35,044 40,268 54,809 168,701
Total Current Assets 2,070,451 2,573,723 3,318,346 3,959,290 4,866,041
Less:
Current Liabilities &
Provision
Sundry Creditors for
Goods
386,000 486,360 638,348 804,318 891,453
Sundry Creditors for
Expenses
137,759 152,652 174,975 201,001 273,202
Total Current
Liabilities
523,759 639,012 813,323 1,005,319 1,164,654
I. T. Payable 0 0 0 26,791 149,581
Net Current Assets 1,546,691 1,934,711 2,505,023 2,927,181 3,551,806
Apllication of Funds 14,600,049 13,925,565 13,496,623 13,727,168 14,120,006
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SCHEDULES FORMING PART OF BALANCE SHEET
Schedule :- A 2010-11 2011-12 2012-13 2013-14 2014-15
Partners' Capital A/c 9,000,000 9,000,000 9,000,000 9,000,000 9,000,000
Partners' Current A/c
Op. Balance 0 154,851 289,947 1,049,868 2,066,594
Add: Profit during the year -210,976 33,660 264,019 471,811 588,809
Add: Int. On Cap. & Salary
during the yrs 1,230,000 1,355,491 1,701,029 2,052,902 2,412,587
Less : Withdrawal 864,173 1,254,055 1,205,127 1,507,987 1,809,721
Balance at the end of year 154,851 289,947 1,049,868 2,066,594 3,258,269
Schedule :- B
Fixed Assets
Land 4,000,000 4,000,000 4,000,000 4,800,000 5,300,000
P&M 9,784,000 8,316,400 7,068,940 6,008,599 5,107,309
1,467,600 1,247,460 1,060,341 901,290 766,096
8,316,400 7,068,940 6,008,599 5,107,309 4,341,213
Furni 186,400 167,760 150,984 135,886 122,297
18,640 16,776 15,098 13,589 12,230
167,760 150,984 135,886 122,297 110,067
Building 200,000 180,000 162,000 145,800 131,220
20,000 18,000 16,200 14,580 13,122
180,000 162,000 145,800 131,220 118,098
Vehicle 457,880 389,198 330,818 281,196 239,016
68,682 58,380 49,623 42,179 35,852
389,198 330,818 281,196 239,016 203,164
Net Fixed Assets 13,053,358 11,712,742 10,571,480 10,399,842 10,072,542
Schedule :- C
Cl. Stock of Inventories
Raw Material 631,959 743,632 950,969 1,148,468 1,255,531
Work in Progress 38,360 45,643 56,595 68,848 75,485
Finished Goods 639,721 745,605 901,444 1,080,727 1,175,352
Total Value of Inventories 1,310,040 1,534,880 1,909,008 2,298,043 2,506,368
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CASH FLOW
2010-11 2011-12 2012-13 2013-14 2014-15
PBT -210976 33660 264019 498602 738390
less carry forward NIL
PBT -210976 33660 264019 498602 738390
less tax@30% 0 0 0 26791 149581
PAT -210976 33660 264019 471811 588809
add:Non-cash expediture 1230000 1355491 1701029 2052902 2412587
depreciation 1574922 1340616 1141262 971637 827300
cash in flow 2593946 2729767 3106310 3496350 3828696
D.FACTOR@ 12% 0.8928 0.7971 0.7117 0.6355 0.5674
TOTAL CASH INFLOW 2316023 2176154 2211010 2221993 2172505
CUMULATIVE CASH IN FLOW 2316023 4492177 6703187 8925180 13113075
Working Capital Released 2015390
CASH OUT FLOW 11172385
CAPITAL BUDGETING AND INVESTMENT DECISION
TOTAL CASH INFLOW 13113075
LESS:CASH OUT FLOW 11172385
NPV 1940690
PROFITABILITY INDEX 1.174
DISCOUNTED PAY-BACK
PERIOD 5.034
INTERNAL RATE OF RETURN 23.83
cash in flow 2593946 2729767 3106310 3496350 3828696
D.FACTOR@ 20% 0.8333 0.6944 0.5787 0.4822 0.4018
TOTAL CASH INFLOW 2161622 1895672 1797633 1686125 1538667
CUMULATIVE CASH IN FLOW 2161622 4057293 5854926 7541052 9079719
cash in flow 2593946 2729767 3106310 3496350 3828696
d.factor@15% 0.8695652 0.7561437 0.6575162 0.57175325 0.4971767
TOTAL CASH INFLOW 2255605.2 2064096 2042449.2 1999049.33 1903538.8
CUMULATIVE CASH IN FLOW 2255605.2 4319701.2 6362150.5 8361199.83 10264739
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Cost of Project
Fixed Assets 14628280
Working Capital 1546691
Total Cost 16174971
Asset Value at the end of five
yrs 4150239.5
Tax Benefit 852346.22
Total Cost 11172385
11172385
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RATIO ANALYSIS
LIQUIDITY RATIO:
1. Current Ratio=Current Assets
Current Liabilities
Year Ratio
1 3.95
2 4.03
3 4.08
4 3.94
5 4.18
2. Quick Ratio=Current Assets-Stock
Current Liabilities-BOD
Year Ratio
1 1.45
2 1.63
3 1.73
4 1.65
5 2.03
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Capital Structure/Leverage Ratio:
i. Equity Ratio:
ii. Debt Ratio:
Year Ratio
1 37.30
2 33.29
3 25.54
4 19.34
5 13.02
iii. Debt to Equity Ratio:
Year Ratio
1 60.50
2 51.51
3 38.30
4 29.56
5 20.69
Year Ratio
1 61.64
2 64.63
3 66.68
4 65.44
5 62.95
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Activity Ratio:
A. Capital Turnover Ratio:
Year Ratio
1 59.19
2 77.88
3 98.51
4 116.79
5 125.15
B. Fixed Assets Turnover Ratio:
Year Ratio
1 66.20
2 92.60
3 125.76
4 154.46
5 177.63
Turnover Ratio:
Inventory Turnover Ratio:
Year Ratio
1 6.60
2 5.22
3 5.34
4 5.25
5 5.04
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Debtors Turnover Ratio:
Year Ratio
1 12.00
2 8.87
3 7.87
4 7.39
5 6.62
Creditors Turnover Ratio:
Year Ratio
1 12.00
2 9.28
3 9.51
4 9.28
5 8.56
PROFITABILITY RATIO:
Net Profit Ratio:
Year Ratio
1 -2.44
2 0.31
3 1.99
4 3.10
5 4.13
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FIXED ASSETS TO PARTNERS CAPITAL RATIO:
Year Ratio
1 1.45
2 1.30
3 1.17
4 1.16
5 1.12
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CASH FLOW STATEMENT Particulars 2010-11 2011-12 2012-13 2013-14 2014-15
A. Cash Flow from Operating Activities
Net profit before tax and extraordinary items -210,976 33,660 264,019 498,602 738,390
Depreciation 1,574,922 1,340,616 1,141,262 971,638 827,301
Foreign Exchange 0 0 0 0 0
Investment 0 0 0 0 0
Gain or Loss on sale of Fixed Assets 0 0 0 0 0
Interest/Dividend 0 0 0 0 0
Operating profit before Working capital
changes 1,363,946 1,374,276 1,405,281 1,470,240 1,565,691
Trade and Other receivables 720,154 283,645 365,271 237,368 584,533
inventories 1,310,040 224,840 374,128 389,035 208,325
Trade Payables 523,759 115,253 174,311 191,996 159,335
I. T. Payable 0 0 0 26,791 149,581
Cash generation from Operations -142,488 981,043 840,193 1,062,623 1,081,748
Interest paid/Salary to Parteners 1,230,000 1,355,491 1,701,029 2,052,902 2,412,587
Direct Taxes 0 0 0 26791 149581
Cash before extra-ordinary items 1,087,512 2,336,534 2,541,222 3,088,734 3,344,754
Deferred revenue
Net Cash from Operating Activities 1,087,512 2,336,534 2,541,222 3,088,734 3,344,754
B. Cash Flow from Investing Activities
Purchase of fixed assets 14,628,280 0 0 800000 500000
sale of fixed assets 0 0 0 0 0
Sale of investment 0 0 0 0 0
Purchase of investment 0 278112 142,008 -19,975 122,304
Interest Received 0 0 0 0 0
Dividend Received 0 0 0 0 0
Loans to Subsidiaries 0 0 0 0 0
Net Cash from Investing Activities -14,628,280 -278,112 -142,008 -780,025 -622,304
C. Cash Flow from Financing Activities
Proceeds from issue of Capital 90,00,000 0 0 0 0
Proceeds from long term borrowing 5,445,198 0 0 0 0
Repayment to finance/Lease Liabilities 0 809,580 1,188,863 786,181 798,837
Dividend Paid 0 0 0 0 0
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Parteners Withdraw 864,173 1,254,055 1,205,127 1,507,987 1,809,721
Net Cash from Financing Activities 13,581,025 -2,063,635
-
2,393,990
-
2,294,168
-
2,608,558
Net increase(Decrease) in cash/cash
equivalents 40,257 -5,213 5,224 14,541 113,892
Cash/Cash equivalents at the beginning 0 40,257 35,044 40,268 54,809
Cash/Cash equivalents at the end 40,257 35,044 40,268 54,809 168,701
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ASSUMPTIONS
We have considered 300 working days of production in each year.
The loan form IDBI is taken at 10 % interest rate p.a. and repay as per
the fund available.
All the partners are working partners and they have equal liabilities as
well as equal share of profit.
out of 10 partners one is accountant, human resource manager,
marketing manager, finance manager and production manager. In
addition to that all the partners have equivalent qualifications according
to their authority. Production capacity will increase as per the demand of consumers.
i.e.,
Tax provision is 30.90% including surcharge.
Depreciation is provided as per income tax Act as Weighted Average
Method.
We are taking loan from relatives in the beginning of the first year and
repay in that year before year ended.
Carriage in warred is 2%. transport cost is 5%, Other charges 1%
year Capacity ( in percentage)
1 50%
2 60%
3 75%
4 90%
5 95%
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In direct labor salary is increase year after year and no. of workers will
increase as per the requirement.
Bonus is paid as per the Bonus Act
Valuation of inventory as per AS – 2 (Valuation of inventory)
Payment made to parteners that is interest on capital and remuneration
as per the income tax ACT.
As per the judgment per of high court , parteners are also allowed
remuneration and interest on capital. Even if it is not shown in the
financial statement of entity if it is allowed by the partnership deed.
Work in progress is 2 days.
Closing stock of finished stock for 1 month.
We have followed the cocept of integrated Accounting system. ( Merging
of financial and cost accounting.)
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CONCLUSION
We would finally like to conclude our project with higher feeling of
having gained enormous knowledge about ice cream industry.
It is very obvious that ice cream industry will have to face very tough
competition from big market players but we are very much confident that
marketing will be our major weapon to fight with competition.
We have gained in depth knowledge about various management
aspects, and learnt how to make true theoretical fundamentals.
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WEBOGRAPHY
www.bing.com
www.google.com.
www.yahoo.com
www.free dictionary.com
www.palenginers.com
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