1. 2010
1
BUSINESS PLAN
ON
JOY SUGER FREE
SWEETS
-: PREPAREd BY:-
MUNSHI Md. EKRAM I.
M.B.A. (III)
ROLL NO: -50
AcAdEMIc YEAR
2010 – 2011
- : SUBMITTEd TO: -
dR. RAJESH PATEL

2. 2

3. dEcLARATON
I undersigned MUNSHI MD.EKRAM I.., the student of 3rd
semester MBA of N.R.V.I.B.M.S, Gujarat Technological University,
Ahmadabad, here, I declared that the project work present in this report is
my own work and has been carried out under the supervision guidance of the
professor and principal of N.R.V.I.B.M.S. Junagadh
This project work is not submitted to any other university for
any other examination purpose. I have tried my level best to include all
information in this report.
PLACE :_____________
DATE :_____________ Your’s Faithfully
(MUNSHI MD.EKRAM I.)
M.B.A. SEM (III)
ROLL NO’ :- 50
3

4. PREFAcE
Indian Management scenario seemed to be mixed hopes at the
commencement of the nineties. Most of the small scale industries in the
country are handicapped. There is an accurate need for substituting the
traditional management techniques by newly developed system of
management.
It is suggested to undergo such training to manage the business
unit efficiently right from its inception and avoid the national losses.
Keeping in view the central ideas and objectives, Gujarat Technological
University has introduced the subject “New Enterprise and Innovation
Management”. The main object of this subject is to develop the skill in the
problem solving and decision making in management of small scale
business.
In lights of above objectives. The students are required to
prepare a project report on selected products. So, I am glad to submit a
project report.
4

5. AcKNOWLEdGEMENT
This Business plan is a part of the subject “New Enterprise and
Innovation Management”. I am glad to submit to this report which includes
the practical aspect of the industrial study. I am happy to expressed to my
deepest gratitude to all person who spend their valuable time and help me a
lot in preparing of this project work. A successful challenge of visit to any
industry gave me a chance to transfer it into a result.
I oblige Gujarat Technological University for providing me
with a valuable opportunity to undertake surveys of small scale industry and
I also thankful to introduce me to a new horizon in the Entrepreneurships
skills.
I am thankful to Dr Rajesh Patel for guiding me towards successful
preparation of this project. I would like to express my opportunity to my
friends and all people who have directly or indirectly help me in this project
work,
Date:
Place: JUNAGADH Student Sign
5

6. TABLE OF cONTENTS
Page
Sr. No. Particulars
No.
1. EXECUTIVE SYNOPSIS 07
 AIMS & OBJECTIVE
 KEY TO SUCCESS FACTOR
2. COMPANY PROFILE 10
 COMPANY SUMMERY
 COMPANY OWNERSHIP
 PROJECT AT GLANCE
 BIODATA OF PARTNERS
3. PRODUCT 14
 DETAIL OF R.M.
 BASIS & PRESUMPTION
 ORGANIZATION STRUCTURE
 IMPLIMENT SHEDUEL
 LOCATION JUSTIFICATION
4. MARKET ASSESSMENT 25
5. SECTORIAL ASSESSMENT 27
 MAJOR PARTICIPATION
 COMPTITIVE STRATGY
 COMPITITVE ADVANTAGE
 RIVALARY & PURCHASING SAMPEL
 LIST OF SUPLIER
6. MARKETINA AND EXICUTION 30
SYNPOSIS
 DEMAND ANALYSIS
 SEGMANTATION
 PRICING DECISION
 DISTRIBUTION DECISION
 POSITIONING
 PROMOTION DECISION
6

7. 7. SALES APPROCH 36
8. INTERNET PLAN 38
9. FINANCIAL PLAN 39
 P&L
 BALANCE SHEET
 COST SHEET
10. CONCLUSION 55
7

8. 1.Executive Summary
A Business plan any plan that works for a business to look ached
Allocate resources focus on key point and prepare for problem and
Opportunities.
Business plan is a written document prepared by the entrepreneur that
describes all the relevant external and internal exempt involved in a starting
new venture. It is often an integration of functional plans such as marketing,
Finance plans manufacturing, and human resources. Business plan should be
Prepared by , however they may consult with many other sources in its
preparation. In its also known as project plans.
In todays sinario concerning that each and every company can enter
into market so, competition is high in todays world.
8

9.  AIMS & OBJECTIVES
Last year the doors to 898,000 new businesses opened in the United
States for the first time. Most of these businesses were created by
entrepreneurs who envisioned an opportunity to develop a new product or
service, and pursued that vision in search of independence and financial
reward. While these visionaries started with solid ideas to form the
foundation of their new ventures, most do not have many of the skills
necessary to transform their ideas into reality. Additionally, the scarcity of
talent in today's market makes it extremely difficult for small business
owners to attract and retain those skills.
9

10.  Key to success factors :-
The main reason behind this sugar free sweets to maintain health and eat
testy sweets person to any other fear to establish in a rural masses to
purchase product which has no eat product because of fear of any illness
and also we can say that Corporate Fitness will serve Seattle-area
businesses, helping them to become more productive, while lowering their
overall costs.
Our business is based on two simple Objectives:
1. Healthy employees are more productive than chronically ill employees.
2. It costs less to prevent injuries or illnesses than to treat them after they
occur.
At Corporate Fitness, we tie worker productivity directly to the health
care issue. We believe that traditional approaches to the current health care
crisis are misdirected. These traditional efforts are what we call reactive—
that is, they wait until after the worker has been stricken with illness or
injury, and then pay for the necessary treatments. Our approach, which
emphasizes prevention and good health promotion, is much more proactive.
10

11. 1.Company profile :-
 Company Summary :-
Joy Suger free sweets is based on the belief that healthy employees
are more productive and efficient employees. For this reason, it provides
wellness strategies/programs to businesses in the downtown Seattle
area.This combines promotion of health and exercise-related activities
designed to facilitate positive lifestyle changes in members of a company's
workforce. The company began in Seattle, founded by three owners, all of
whom hold director positions.
 Company ownership :-
JOY SUGAR FREE SWEETS is a privately held corporation. The
two founders
comprise all of the ownership.
• MUNHI MD.EKRAM I.
• MUNSHI MOIN
11

12.  Project At A Glance :-
Name of the unit:-1 Joy Dairy Farm
Address for communication:- “Joy dairy form”
6, Jagnath plot,
Dr. rajkot road,
Junagadh
Type of the Unit Partnership firm
Location of the unit:- “Joy dairy form”
Mavdi main road,
Opp. Naviwala building,
Junagadh
Name of the Product:- Sugar free sweets
Partner’s name:- MUNSHI MD.EKRAM I.
MUNSHI MD.MOIN
Brand name:- “Joy dairy form”
12

13.  Biodata Of partners :-
Biodata Of Partner :- 1
Name:- MUNSHI MD.EKRAM I.
Address:- " MUNSHI MD.EKRAM I."
SEM APARTMENT,
Dr. rajkot road,
Junagadh
Education qualification:- M.B.A with marketing
Age:- 23 years
Finance contribution:- 50%
Role in Unit:- Managing finance and marketing
13

14. Biodata of Partner:- 2
Name:- MUNSHI MD. MOIN
Address:- "BISMILLAH APARTMENT"
B/35 shroff road
JUNAGADH
Education qualification:- M.B.A., & B.Ed.
Age:- 27 years old
Experience:- 2 years
Finance contribution:- 50%
Present activity:- Management and study for C.A.
Role in the unit:- Managing production and human resource department
14

15. 2.PRODUCT :-
“Sugar free sweets”, the name itself suggests that they give
sweetness to those people whom sweets are for away to reach the products is
made for diabetics and diet conscious people.
The concept of sugar-free sweets come into the Junagadh before 3
years. This is the segment where only a few competitors and great potential
for expansion. We have done search and surveys for check in the demand
and trend of the people towards sweets and from them sugar-free sweets and
we came to know that only 20% consumers prefer sugar-free sweets in the
general time or in occasions. But by considering today increased number of
diabetic patients and the awareness among the people, we found and larger
& great market for the same.
15

16. We want to start sugar-free sweets for diabetic patients with the motto
of serving society and better and profitable way than the competitors. We
have entered in riche market the initial launching strategy of use will itself
our products quality i.e. delicious test convenient packaging, superior
quality, and nutrition, affordable price on time delivery or quick delivery.
We will produce many products based on & main ingredients i.e. date,
fig and black raisins. The various products are made from it and other in
gradients like cashew coconut powder, pista, almond and many more each
product changes comparatively high price than the general & common
sweets before all are made from dry fruits.
16

17. The products produced & their rate of each product given below
Items
Items Rate (per kg.)
Dry Fruits Roll Cut 400
Angir Kasata 320
Angir Dry Fruit Halva 160
Angir Roll 400
Kayce Anger Roll 300
Manpasand 320
Sangam Slice 150
Angir Slice 160
Angir Badam Halva 220
17

18.  Details Of Raw Material :-
Raw material is the precondition for production function. Qualitative
raw material effective processing and proper maintenance are milestones for
efficient production.
The main raw materials required for preparing sugar free sweets are as
follows
1Date
2Ghee
3Cashew
4Almond
5Fig
6Pista
7Black raisins
8Coconut powder
18

19. And also other required materials are
1Paper boxes
2Plastic packets
3Plastic papers
4Containers (for loose selling)
19

20.  Basis & Presumption :-
1.It had been taken into consideration that the unit will work for 8 hours
a day for 300 days in a year. In case of emergency the overtime will be
carried out as the production is based on orders.
2.To achieve full plant capacity the trial production will be carried out
for 15 to 20 days and by taking 6 to 7 samples.
3.Labor and wages mentioned as per the prescribed minimum
requirement of them
4.Interest rate at 9% for fixed and 13% for working capital is considered
in the project profile
5.Margin of money will very from 30 to 35% depending upon the labor
and raw material available to the firm.
6.The costs of land, construction, charges, machinery and equipments,
raw materials and consumables, other expenses etc indicated in the
profile are based on those prevailing at the time of preparation therefore
they are subject to necessary changes from time to time based on local
conditions.
20

21.  Organization Structure :-
Organization is a group of people working together cooperatively
under authority toward achieving and objectives that manually benefit the
participants and organization.
The superior subordinate relationships are defined by organization
charts, which are formal documents that indicate the chain of command and
titles that have been assigned to the managers and other personnel.
21

22.  Implementation Schedule :-
Implementation schedule means actual time required to start the
production process. The major activities in the implementation of the project
have been listed & systematic implementation of project may take around 11
to 12 months for completion.
Sr. No. Activities Time Period
1 Survey for collection of data in respect 2 months
of demand, raw material, including
power and fuel availability of
technology, pollution control
2 Arrangement for margin money 1 month
3 Preparation of project document and 1 month
Registration
4 Financial assistance 2 months
5 Selection of site & development of land 2 months
6 Make shift office 12 months
7 Electricity, fuel and water tying up for 2 months
availability
8 Selection of machines and procurement 1 month
9 Selection of raw material and 8 days
procurement
10 Recruitment of staff and labo 15 days
11 Registration for SSI 15 days
12 trial production 20 days
22

23.  Location Justification :-
In recent years the concept of industrial location has received much
importance & closer attention for any newly started manufacturing business.
Location of any industry pays a dominant role in success for failure of the
company.
Only best selected location on one side can earn variety of benefit and
any mistake in selection of location on the other side can result into a great
loss. Therefore before selection of the plant location promoters have to
check the various have to check the various alternative locations in terms of
loss contribution and environment too.
Availability Of Raw Material
All the required raw materials are easily available locally at market
rate for preparing sugar free sweets at proposed location.
23

24. Proximity To The Market:
Proximity to the market means nearness to the market. From
marketing point of view, we have very enrich and expanding market for our
products. The most important benefit of nearness to the market is you can
closely be attached with the current market position of demand, products,
competitors, price, consumer beliefs and attitudes towards the products and
many more: we have selected our location on mavdi main road where the
penetration of dairy prodeucts is lesser and only competitors of suger-free
sweets in rajkot. So we have a very good market as rajkot is the centre for
saurashtra and a highly developing city. We have a highly developing city.
We can create, maintain and develop the demand easily and profitably.
Many hotels are also consuming the sweets so, the large and beneficial
potential is found out.
Availability Of Manpower
Manpower is the heart to run any kind of activities. For effective running of
any firm and activating maximum production & to have at least cost, labor is
required. All skilled and unskilled manpower can easily be obtained near by
the area at cheaper rate and also with the basic required knowledge to
operate.
24

25. Availability Of Manufacturing Services
Manufacturing services are the core necessity for efficient and effective
production. Water electricity and other infrastructure facilities are included
in it. As for as our location is concerned water and electricity is easily
available for 24 hours at very economical rate and other facilities are also
available easily as it is inclusive in the city.
25

26. 4.MARKET
ASSESSMENT :-
 Transportation Facilities :
By selecting this plant location for sweets will be beneficial more for
transportation mode rate and way we won’t have our own transportation
vehicles, the distribution of sweet will be carried out through transportation
contract will private companies. Which are easily available at economic rate.
Personal Factory:
We have selected this unit because of above all reasons and in
addition, our personal influence for the selection, as we want to develop this
area by anyway if we can society the society in our earlier stage of business.
26

27. Other Ancillary Services:
Other ancillary services like banking, insurance, technically
assistance, warehousing etc are easily available at feasible rate.
Thus viewing all phases of the location, it seems to be most appropriate
location for the firm so we considered it as very favorable & ideal location
for us.
27

28. 5.SECTORIAL
ASSESSMENT:
 Major Participation :-
The main competitors of Joy sugar free sweets are…
1Shiv Shakti Sweets
2Sweet Palace
3Bengal Sweets
These are the main competitors providing suger free as well as general
sweets the concept of suger free sweets came on junagadh before 3 years so
there is not keen competition but oligopolistic market competition
 Competitive Strategy :-
28

29. To compete with the existing competitors company will create
awareness among the people that such kind of qualitative Taylor made and
Nutritious products are available. Effective advertising through sign boards
Hoardings and print ads in various materials effective distribution strategy is
being adopted
 Competitive Advantage :-
1The quality of the sweets,
2It’s delicious taste,
3Effective pricing policy,
4Efficient distribution channels.
 Rivalry & Purchasing Sampel :-
The main reason behind this to maintain safe place in market and also
its another objective is to introduce new product in market. So we can first
the sample of sweets into prestigious way in a new market. Person can
purchase the sweets we can also provided sample a new launching product
so in this way also our product demand is also incising.
29

30.  List of Suppliers :-
1.Ambika machines,
Rajkot Highway,
Saverkundala.
2.Rathod machines
6 Mavdi Plot,
Junagadh.
3.Gayatri Refrigerator
Vanthly Road,
Kotecha Chowk,
Junagadh.
4.GAS
Gujarat Essence.
Junagadh.
30

31. 6.MARKETING AND
EXICUTION
SYNOPSIS:-
 Demand Analysis :-
The demand of the sugar free sweets in current market specially in
saurashtra is 12 % where demand of the general sweet is larger than it but
the future potentially is grater in terms of demand. Specially diabetic people
will consume occasionally as well as generally.
Supportive Basis For Growth Is Demand:
Increase the number of diabetic patients & diet conscious people in the
society growth rate 10 %
Current Consumption Pattern
Product are being consumed on routine basis and also occasionally
31

32. consumption Size
Consumption size for sugar free sweets is comparatively small than general
sweets
Pick Points With Reference To Demand
Festivals time and marriage seasons.
32

33.  Segmentation :-
The market segmentation of sugar free sweet may be classified as under:
Geographical Segmentations:
As sugar free sweet made mainly from the dry fruit and pure
materials having very high prices so they are consumed by the class people
living in 6, Jagnath plot, Dr. rajkot road, Junagadhwith special reference to
Rajkot only and other regions where the rich people are living
Demographic Segmentation:
1Age group – above 30 years
2Income – high earn
3Personalities- rich & aristocrat personalities
4Social class- higher middle & upper class
5Education- highly educated and well awarded
6Behavioral – well awarded
Psychological Segmentation:
Beliefs & attitudes – favorable, positive
33

34.  Pricing Decision :-
Objectives
1To earn desirable profit
2To society the society
3To fight with competitors
4To create brand equity
Influencing Factor
1Cost of raw materials
2Cost of production
3Prevailing demand
4Competitors price
Pricing Method
1Cost plus pricing
34

35.  Distribution Decision :-
Channel
2Distributors – retailers- end users
3Hotels & restaurants
4Wedding planners
5Event manager
 Positioning :-
Product positioning
]
(Note: * The product sugar free sweets are expensive and nutritious for the end
users.)
By doing comparative study of the above map, we can make out our
close competitors are sugar free sweets chemical based and sugar free ice
scream.
Brand Positioning
The brand positioning map of the Utsav brand is as follows:
35

36.  Promotion Decision :-
Objective
1Create awareness among mass for sugar free sweet & specially among
patients
2Brands awareness
3Brand preference
4Brand loyalty
Budget
5Rs. 10,000 per month
Tools
6Signboards,
7Hoardings,
8Printed materials,
9Catalogs,
10Local magazines
11Other materials of social groups.
36

37. 7. SALES APPROCH :-
 Production Process :-
For making up of sugar free sweets mainly 3 dry fruits are used for a
base i.e. Date, fig & Black grapes
Preparation Method
To prepare date based sugar free sweets firstly make it seed less then
to crush it in mava maker and to fry it on gas stove with pure ghee. Then
after to cut and sliced the dry fruits according to their name and given
specification like cashew almond pista and coconut powder etc add to the
fried date and again fried it in maska machine then give them different
shapes according to their name & specifications give to them. To freeze the
mis refrigerator for 3 to 4 hours now date based any item is ready to eat or
serve.
Date Based
The items which are made from the date are:-
1Dry fruit roll cut
2Manpasand
3Sangam slice
The other fig based and black raisins based items also require the same
process as date based
37

38. Fig Based
The main items made from fig based are:
1Angir kasata
2Angir Roll
3Angir Dryfruit halva
4Kaju Angir Roll
5Man pasand
6Angir slice
7Angir badam halva
Black Raisins Based
8Dry fruit roll cut
9Kishmis kamal
10Kishmis kasata
11Kishmis roll
12Manpasand
13Sangam katri
14Kaju kishmis etc
38

39. 8.INTERNET PLAN
 Expansion need & milestone :-
The modern world is fast growing, it is expanding considerably in
food habits. New innovation of yesterday is old for today, it is a past and
tomorrow is a present.
The following are the future prospects of my unit:
1Expansion in existing tem with different flavors and ingredients
2Expansion in existing market and cover the entire Gujarat.
3Diversifying in other sugar free food items.
4Development of various branches whole over the Gujarat.
39

40. 9. Financial Plan :-
Fixed capital Details
(Section - I)
(a) Land And Building
Sr. No. Particulars Amount
(Rs.)
1 Land : 25,00,000
500 sq. mtrs. @ Rs. 5000 per sq. mtr.
2 Building: 15,00,000
Work shed: 200 sq. mtr. @ Rs. 7500
Storage: for raw material 20 sq. mtrs. And for
finished goods 20 sq. mtrs.
3 Furniture: 250,000
Electrification and fixtures 150,000
Total 4,400,000
(b) Machineries & Equipments
Sr. no. Description Qty Price (per unit) Total Price
(Rs.)
1 Mava Maker 4 80,000 320,000
2 Dry Fruit Cutter 2 15,000 30,000
3 Maska Machine 1 25,000 25,000
4 Slice Machine 2 20,000 40,000
5 Refrigerator 2 110,000 220,000
Total 11 250,000 635,000
40

41. (c) Statement Showing Total Fixed Cost
Sr. No. Particular Cost (Rs.)
1 Land building and furniture 4,400,000
2 Machineries and equipments 635,000
Total 5,035,000
Land Building M achine & Equip.
41

42. Working capital Details
(Section - II)
(a). Personnel (Per month)
Sr. Designation No.s Salary Total
No.
1 Manager 1 7,000 7,000
2 Supervisor 2 5,000 10,000
3 Accountant 1 4,500 4,500
4 Stock Keeper 1 2,500 2,500
5 Counter Person 1 3,000 3,000
6 Skilled Workers 4 2,200 8,800
7 Unskilled Workers 6 1,800 1,800
Total 16 46,600
42

43. (b) Raw materials
Sr. Particular Qty Rate (per Total
No. (kg.) kg)
1 Ghee 30 140 4,200
2 Cashew 100 240 24,000
3 Almond 70 480 33,600
4 Fig 50 280 14,000
5 Date 70 35 2,450
6 Black Grapes 40 140 5,600
7 Coconut 20 75 1,500
Powder
8 Pista 20 280 5,600
Total 400 90,950
(c). Utilities (per month)
Sr. Particular Total Value
No.
(Rs.)
1. Power – per unit Rs. 4 7000
2. Water 5000 ltrs 2000
3. Gas 125 bottles @ 320 (aprx.) per no. 40000
Total 49000
43

44. (d) Other expenses (per month)
Sr. No. Particulars Value (Rs.)
1 Postage & Stationary 500
2 Telephone 3000
3 Repair & Maintenance 2000
4 Transportation Charges 15000
5 Advertisement 20000
6 Insurance 2000
7 Miscellaneous Expenses 5000
Total 47500
(e). Statement showing total working capital (monthly)
Sr. Particulars Cost
NO.
1 Personnel 46600
2 Raw Materials 90950
3 Other Expenses 47500
4 Utilities 49000
Grand Total 234050
49000
Utilities
47500
Other Exp.
Raw Material 90950
46600
Per sonnel
0 20000 40000 60000 80000 100000
Cost Bar 2 Bar 3 Bar 4
44

45. (f) Working capital Requirement
(for 3 months)
Rs. 2 34 050 X 3 Months = Rs. 7, 02, 150
Total Capital investment
Sr. No. Particulars Value (Rs.)
1 Fixed Capital 5,035000
2 Working Capital 7,02,150
Total 57,37,150
45

46. SOURCES OF FINANCE
Sr. Particulars Contributio Value
No. n
1 Owned Capital 35% 2008002
2 Borrowed Capital 65% 3729147
Grand Total 5737150
4000000
3500000
3000000
2500000
2000000
1500000 Value
1000000
500000 Contribution
0
Owne d Borr ow e d
Capital Capit al
Contribution Value
 Interest On Capital
Sr no. Particulars Rat Value (Rs.)
e
1 Owned Capital 9% 180720
2 Bank loan 12% 447498
Total Interest 628218
46

47.  Depreciation Details
Sr Particula Gross Rate Depreciat Net
no r block ion Block
1 Building 1500000 10% 150000 1350000
2 Furniture 250000 8% 20000 230000
3 Machines & 635000 10% 63500 571000
Equipments
Total 238500 233500 2151500
0
 Cost Of Production
SR Particulars Value
NO. (Rs.)
1 Total requirement of working capital 2808600
2 Depreciation on Building 150000
3 Depreciation on machinery 63500
4 Depreciation on Furniture 20000
5 Interest on Bank Loan 447498
6 Interest on owned Capital 180720
Total cost 3670318
 Sales Turnover (Monthly):
47

48. Yearly Sales Turn over
Sr. Particular Qty Rate Amt
no.
1 Date Based 300 500 150000
2 Black Raisins Based 250 600 150000
3 Fig Based 400 550 220000
Total 950 1500 520000
Sales = 520000 X 12 Months
= Rs. 62,40,000
Fixed Cost
Sr. No. Particulars Value (Rs.)
1 Depreciation on building 150,000
2 Depreciation on furniture 20,000
3 Depreciation on machinery 63,500
4 Interest on bank loan 447,498
5 Interest on owned loan 180,720
6 Insurance 10,000
7 40% Salary & wages 18,640
8 40% Other Expenses 19,000
Total 909,358
Profitability Analysis
Particulars Amount
(Rs.)
Sales volume 6240000
Less: Cost of production [Excluding interest] 3,042,000
48

49. Earning before Interest & Tax 3198000
Less: interest on Capital 628,218
Earning before Tax 2569782
Less: income tax at 35% (assumed) 899424
Profit After Tax 1670358
Proft
Profitability = ---------- X 100
Sales
936577
= ---------- X 100 = 15%
6240000
 Break Even Analysis :
Break even analysis is widely used technique to study cost volume
49

50. profit relationship. The narrow interpretation of the term break even analysis
refers to a system of determination of that level of activity where total cost
actual total selling price.
In nut-shall, BEP means like level of output of sales at which no profit
no loss is activated.
Break even point for sugar free sweets
Fixed Cost
BEP = ------------------- X 100
Fixed Cost + profit
909,358
= ---------------------- X 100
909,358 + 936577
= 49.26 %
50

51.  Computation of Ratios :
i. Return on Investment
Net Profit
ROI = ----------------- X 100
Total Investment
936577
= -------------------- X 100
2,737150
= 34.21%
ii. Return on Fixed Assets
Profit 936577 X 100
= ----------- X 100 = ----------------
Total Fixed Assets 5,035,000
= 18.60%
51

52.  Risk Factors :
For inception of any activity, the risk factor is involved with itself.
Risk factor is like living without being born. So, before starting any
organization or unit the entrepreneurs have to keep in mind the weak as well
as threatening feets of the firm.
The risk factors involved with Utsav Dairy Farm may as follows:
1The demand of the products may not be generated as predicted.
2The firm will have to face strong competition.
3The promoters of the firm are not much experienced in the field of
entrepreneurship and in the food items.
4Consumers will not be got much well aware about the products.
5In the very first year the company may face loss.
52

53. P&l account for 3 years
Particular 1st Year 2nd Year 3rd Year
Sales 6240000 6864000 7550400
Net Sales / Income (A) 6240000 6864000 7550400
Manufacturing Exp.:
Raw Materials 1091400 1200540 1320594
direct wages 265200 291720 320892
Utilities 588000 646800 711480
Repairs & Maintenance 24,000 26400 29040
Total Manu. Exp. (B). 1968600 2165460 2382006
Gross Profit (A-B) (C) 4271400 4698540 5168394
Adm. Selling Exp.
Telephone 36,000 39,600 43,560
Postage & Stamp Duty 6,000 6,600 7,260
Miscellaneous Exp. 60,000 66,000 72,600
transport exp. 15,000 16,500 18,150
Salary 294000 323,400 355,740
Depreciation 2151500 2,366,650 2,603,315
Insurance 24,000 36,000 36,000
Interest
Own Capital 190720 190720 190720
Borrowed Capital 447498 447498 447498
Total Adm. Ex. (D) 3,224,718 3,492,968 3,774,843
Operating Profit (C-D) 1,046,682 1,205,572 1,393,551
(Less) Tax 110,105 421,950 487,743
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54. Balancesheet for 3 years
Particulars 1st Year 2nd Year 3rd Year
Capital Liability
Own Capital 2008002 2008002 2008002
(+) Int. on Capital 688218 688218 688218
(+) Net Profit 936577 783622 905808
3632797 3479842 3602028
Borrowed Loans 3729147 3729148 3729149
Creditors 250000 270000 260000
Total 7611944 7478990 7591177
Property Assets
Fixed Assets
land & Building Less Dep. 1500000 1350000 1215000
Machine Less Dep. 635000 571500 514350
other fixed assests less dep. 250000 230000 211600
debtors 702150 1167665 1167665
Cash and bank 4,524,794 4,159,825 4,482,562
Total 7611944 7478990 7591177
Cost sheet for 3 years
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55. Particulars 1st year 2nd year 3rd year
Raw Material Consumed
Op. Stock of Raw Material -
Purchase 1091400 1200540 1320594
Cost of R.M. Consumed 1091400 1200540 1320594
Direct Wages 265200 291720 320892
Utilizes 588000 646800 711480
Prime Cost 3036000 2139060 2352966
Factory Overhead
Salaries 294000 323400 355740
Dep. On Building & Machine 150000 165000 181500
Maint. & Repairs of Machine 24000 26400 29040
Work Cost. 3504000 2653860 2919246
Office / Adm. Overhead
Telephone 36,000 39600 43560
Postage & Stamp Duty 6,000 6600 7260
Insurance 24,000 26400 29040
Mis. Expenses 5,000 5500 6050
Interest on Cap. 688218 757039.8 832743.78
Depre. On other fixed Asset. 20000 18400
Cost of Production 4,283,218 3,507,400 3,837,900
Selling & Dist. Overheads
transport exp. 15000 16500 18150
5,888,81 6,377,85 6,922,277
Cost of Sales. 4 2
Sales 6270000 6897000 7586700
Profit 381,186 519,148 664,423
10.Conclusion
To end up the discussion, since the starting of the project with the
selection of the sugar free sweets for a new segment of consumers with
55

56. the
greater potentially.
This is my pleasure to put this report before the University for
launching the “sugar free sweet”. As a promoter of this unit, I have made
all the required efforts for the successful launching of all products. I hope
that the sugar free sweets will be successes in the market and specially my
brand, “Joy Sugar free sweets”. The main aim of mine for launching
this kind of product is just to societal the society by providing best quality
products for the diet conscious and diabetic patients.
Govt. should support these kinds of small scale units to serve the
public with qualitative food items. I also want to help in generation of
employment opportunities and to raise standard of living.
At least I am again very thankful to all of the concerned people who
helped me in preparing this report. This is also true for me as I thought my
report could express my thoughts & researches for sugar free sweets. It was
a great experience that I might want to deal in future. That’s all it will be
great opportunity for every student.
56

57. BIBLIOGRAPHY
Entrepreneurship – VASANT DESAI.
www.google.com
 Myownplan.org
 Structure.org
 Plan.org
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