1. 1
A
BUSINESS PLAN
ON
PREPARED BY
VEJALPARA UNNIT N..
ENRL.NO.117360592071
M.B.A. SEM-III
SUBMITTED TO
PROF. Dr. Rajesh Patel
Institute
N.R. VEKARIA INSTITUTE OF BUSINESS
MANAGEMENT STUDIES,-JUNAGADH.

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STUDENT DECLARATION
I the undersigned VEJALPARA UNNIT N. student of M.B.A. (Sem-III of N.R.
Vekaria Institute of Business Management Studies – Junagadh), hereby declare that this
BUSINESS PLAN is the record of authentic work carried out by my own efforts, under the
guidance of Prof. Dr. Rajesh Patel during the academic year 2012-13.
Place:-Junagadh.
Date: -
Your sincerely,
(vejalpara unnit n.)

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INDEX
Sr. NO. PARTICULAR PAGE NO.
1 Introduction
2 Project at a glance
3 Promoter’s Bio-data
4 Location justification
5 Introduction of product & market analysis
6 Manufacturing process
7 Product features & its uses
8 Financial details
9 Financial arrangement
10 Profitability of a project
11 Project summary
12 Fund flow statement
13 Cash flow statement
14 B.E.P. Analysis
15 Advancement & future prospect
1.INTRODUCTION
The small scale industry is playing a vital role in the economic
growth. Small scale industries will help in achieving a decentralized pattern of
economic activity in the country. It creates opportunity of employment. Thus, it
plays very important role in developing country.
DIGITAL based on the firm foundation of international quality
offering the widest range of products. Quality is our assurance & the world is our

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market. The main aim is to satisfy customer &give better quality. He is not dependent
on us we are dependent on him. The main purpose is to give better & entire
infrastructure facilities.
2.PROJECT AT A GLANCE
Under the head “ELECTRONIC CALCULATORS” the preliminary
information of the project is given. The preliminary information of the project is as
follows.
Name of unit :- A.K. ELECTRONICS
Address :- G.I.D.C.

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Dolatpara,
Junagadh.
Form of organization :- Partnership Firm
Name of product :- “ELECTRONIC CALCULATORS”
S.S.I. registration No. :- An application has been made with DIC, JND
Details of location :- G.I.D.C.
Owner’s name :- ( 1)Vejalpara Unnit N.
(2) Jethava Hemal G.
Cost of project :-Rs.20,00,000
3.PROMOTER’S BIO DATA
(1). Name : -Vejalpara Unnit N.
(2). Address :- At. “PITRU ASHISH”
Khamdhrol road,
Near bhumi app.
Junagadh

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(3). Age :-22 Years
(4). Academic Qualification :-M.B.A.
(5). Working Experience :- Fresher
(6). Nature of Responsibility :-finannce
(7). Contribution of Unit :-50%
(8). Tax Details :-Paid
(9). Total Share of Profit :-50%
(1). Name : - jethava Hemal G.
(2). Address :- “SHANDILYA”
Block No. -15,
Mangaldham-2,
Junagadh.
(3). Age :-24 Years

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(4). Academic Qualification :-B.E. ( Eletronics )
(5). Working Experience :- 2 years
(6). Nature of Responsibility :-Production
(7). Contribution of Unit :-50%
(8). Tax Details :-Paid
(9). Total Share of Profit :-50%
4.LOCATION JUSTIFICATION
Location means the place a particular is situated. Generally, every entrepreneur
would like to locate his factory in such an area where all basic facilities can be
availed very easily.
Desire of setting up my product project is influenced by following factors.
(1) RAw-MATERIALS :-

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As the firm is situated near the area where raw-
materials are easily available and are near to the area from where the raw- materials
are to be purchased.
(2) LABOUR :-
Generally, all type of manpower is available at reasonable cost as
many industries are established in this area. Moreover different laborers are coming
from near village for getting jobs.
(3) TRANSPORTATION :-
The firm situated near by a roadway that’s
highways, and also as many industries are situated it gets all the necessary facilities
needed for transportation.
(4) FINANCIAL FACILITIES :-
There are many banks and Money senders
from which financial requirements can be satisfied. More over G.S.F.C. provides
loans to held industries and remaining shall be on contribution.
(5) OThER FACILITIES :-
1. TELECOMMUNICATION –

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The facility of telephone and telegraph is available easily here.
2. ELECTRICITy -
Government has provided the electricity at very cheap rate,
so here G.E.B. also provides the electricity at cheaper rate and that too easily

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5.INTRODUCTION OF PROJECT & MARKET
ANALySIS
“ELECTRONIC CALCULATORS” has great market in the consumer
goods. In every field calculator is essential such that in office, banks, shops, students,
engineer for calculation is mostly using. So, this electronic items covers mostly high
market.
As we know the use of “ELECTRONIC CALCULATORS” are much more
not only in one area but in all over the world. This product is very high potential in the
market even when it is available at a very reasonable rates with the good quality.

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6.MANUFACTURING PROCESS
The main raw material required in manufacturing ELECTRONIC
CALCULATORS are plastic cabinet, key, tops, pressure pad, integrated circuit, chips,
LCD display, & connector. The manufacturing process involves following stage:
 Inspection of raw materials /components .
 Assembling components like integrated circuit, diodes, chips, etc on
paneled circuit board ( PCB )
 All precautions which are taken in respect of CMOS, in the same
manner integrated circuit should also be taken care of while mounting/
shouldering integrated circuit on PCB.
 Washing of printed circuit board with PCB cleaning chemicals to
remove flux contaminates /residues.
 Mounting of PCB’s in the cabinets along with the LCD display pressure
pad, connecters & other hardware items like battery clips/ spring etc.
 Checking & sorting of final product & then dispatch.
SUPPLIERS:-
Bansi Suppliers, Trupti Suppliers,
Arrows Complex, Sarasvati Complex,
Linking Road, 2nd floor,

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Santa Cruise (West), Ambavadi,
Mumbai-400 023 Ahmedabad-
7.PRODUCT FEATURES & ITS USES
Product is a key element in the market offering. Marketing
mix planning begins with formulating an offering to meet target customer’s
needs or wants. The customer will judge the offering by three basic
elements. The product features & quality, the services mix &quality and the
offering’s price appropriateness. Thus all the three elements must be meshed
into a competitively attractive offering.
Electronic Calculators in various sizes & models.

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 USES:
Electronic calculators are extensively used in office,
banks, shops, departmental stores, students, housewives & various other
establishments. Scientific calculators are used by students & research works.
This calculator uses an integrated circuit. Generally these calculators could
by placed in the following categories:
1) Pocket type
2) Desk top type
3) Desk top type with printer
The above categories could be further subdivided
based on number of digits, type of display (Black, Fluorescent, etc.)
memory function, type of printer (i.e. light / heavy duty), power i.e.
(Single / Dual / triple power operated etc.)
As such a large variety of calculators would be
available in the market with price ranging from Rs. 100 to Rs. 10,000.
Above all these calculators will offer better
aesthetics, lesser weight, large variety in sizes & design. It wills also trendy
patterns, strong posture & long lasting.

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8.FINANCIAL DETAILS
(A) LAND:-
Sr. No. Sq. Mtr. Rate Total Value
1 400 500 2,00,000
(B) BUILDING:-
Sr. No. Details Area Sq. Mtr. Rate Total Value
1. Office 25 500 12,500
2. Working Shed 150 500 75,000
3. Staff Quarter 200 400 80,000
4. Go Down 165 500 82,500
(C) MAChINERy:-
No. Description Qty. Rate Amount
1. Bench drilling machine 3 25,000 20,000
2. Portable Grinder 2 30,000 10,000
3 Testing equipments
A) Oscilloscope 2 1,20,000
B) DC power supply 8 1,00,000
4 Multimeters
A)Analog 3 9,000
B) Digital 3 18,000
5 PCB Assign. Aids + 10 30,000
Electrification charges 40,000
6 Cost of dies, moulds, jigs 1,00,000
&fixtures
7 Office equipments & 4,85,000
fixtures
COST 9,32,000
Add: T.P.cost 18,000

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TOTAL COST 9,50,000
The place from where machineries will arrive.
Toshiba Equipments, Shrinathji Equipments,
paldi, Ambavadi,
Ahmedabad, Ahmedabad.
(D) FIXED CAPITAL:-
No. Description Amount
1. Land 2,00,000
2. Building 2,50,000
3. Machinery 9,50,000
4. Preliminary Expenses 1,00,000
5. Contingency 1,00,000
Total 16,00,000
(E) wORKING CAPITAL STATEMENT:-
No. Description Amount(Monthly) Amount(Yearly)
1. Raw Material 70,000 8,40,000
2. Packing Material 20,000 2,40,000
3. Wages & Salary 20,000 3,60,000
4. Other Expenses 10,000 1,20,000
5. Debtor 2,000 24,000
6. Repair & Maintenance 4,000 48,000
7. Power & Fuel 7,000 84,000

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(F) TOTAL COST OF A PROJECT:-
No. Description Amount
1. Fixed Capital Cost 16,00,000
2. Working Capital Cost 4,00,000
Total 20,00,000
9.FINANCIAL ARRANGEMENT
(A) FINANCIAL OF ThE PROJECT:-
No. Description Total Owned Loan
1. Land & building 4,50,000 3,50,000 1,00,000
2. Machinery 9,50,000 7,00,000 2,50,000
3. Contingency 1,00,000 1,00,000 -
4. Working Capital 4,00,000 4,00,000 -
5. Preliminary Exp. 1,00,000 1,00,000 -
Total 20,00,000 16,50,000 3,50,000

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(B) ANALySIS OF INvESTMENT:-
Particular Amount
Owned Capital 16,50,000
Loan from GSFC 3,50,000
Total 20,00,000
(C) OwNED CAPITAL:-
Gajera Kalpesh 8,25,000
Baldha Abhisek 8,25,000
Total 16,50,000
10.PROFIABILITy OF A PROJECT
(A) SALES & PRODUCTION (ANNUAL):-
particulars Price per unit monthly Selling Annual Income
Pocket calculators 145 850 14,79,000
Desk top calculators 200 700 16,80,000
(B) COST OF RAw MATERIALS:-

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No. Raw Material Qty. Cost(Monthly) Amount(Monthly)
1. Connectors 2,000 10 20,000
2. Diodes 2,000 11 22,000
3. LCD Display 2,000 10 20,000
4. capacitor 1,600 12 19,200
5. circuit 1,600 11.75 18,800
Total 1,00,000
(C) COST OF wAGES & SALARy:-
No. Details of No. of Salary & Salary &
Worker Worker Wages(Monthly) Wages(Yearly)
1. Manager 1 8000 96,000
2. Supervisor 1 6000 72,000
3. Skilled Worker 3 4000 1,44,000
4. Unskilled 2 2000 48,000
Worker
Total 7 20,000 3,60,000
(D) ELECTRICITy CONSUMED (ANNUAL):-
Sr.no. Particular Amt. (yearly)
1. Water 5,000
2. Power 1,65,000
TOTAL 1,70,000
(E) RENT. TAX. &INSURANCE:-
Sr. no. Particular Amount(Yearly)
1. Rent. Tax & Insurance 1,00,000
(F) REPAIR &MAINTENANCE:-

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Sr no. Particulars Monthly Yearly
1. Repairs 1,000 12,000
2. Maintenance 3,000 36,000
(G) INTEREST:-
No. Particulars Amount Rate Interest
1. GSFC 3,50,000 11% 38,500
(h) DEPRECIATION:-
No. Depreciation Amount Rate Interest
1. Building 2,50,000 9% 22,500
2. Machinery 9,50,000 8.5% 80,750
Total 1,03,250
(I) ADMINISTRATIvE EXPENSES:-
No. Particulars Monthly Yearly
1. Printing & Stationary 200 2400
2. Telephone & postage 500 6000
3. Transport 2000 24,000
Total 32,400
(J) SALES EXPENSES:-
No. Particulars Monthly Yearly
1. Advertisement & Publishing Exp. 1000 12,000
2. Packing Expense 1000 12,000

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Total 24,000
11.PROJECT SUMMARy
(A) CALCULATION OF PROFIT:-
Particular Amount Amount
Income from sales 31,59,000
Less: Cost of Production
Raw Material 12,00,000
Salary and Wages 3,60,000
Electricity 1,70,000
Rent and Insurance 1,00,000
Repairs 48,000
Interest 38,500
Depreciation 1,03,250
Administration Exp. 32,400
Sales Exp. 24,000 20,76,150
Total Profit 10,82,830
Total Profit 10,82,830
Less: Income tax @ 30% 3,24,849
-------------------
Net Prifit 7,57,981
PROFIT DISTRIBUTION:-
Gajera kalpesh R. :-7,57,981 * 50% = Rs. 3,78,991

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Baldha Abhishek K. :- 7,57,981 * 25% =Rs. 3,78,990
12.FUND FLOw STATEMENT
Particular Amount Amount
(A) Source of Fund
1.Own Capital 16,50,000
2.Loan from GSFC 3,50,000
Total source 20,00,000
(B) Application of fund
1.Land & Building 4,50,000
2.Machinery 9,50,000
3.Contingency 1,00,000
4. Preliminary Expenses 1,00,000
5.Working Capital 4,00,000
Total Application 20,00,000
13.CASh FLOw STATEMENT

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PARTICULA 1 ST 2 ND 3 RD 4 Th 5 Th
yEAR yEAR yEAR yEAR yEAR
R
Net profit during 10,82,830 13,70,000 15,60,000 17,00,000 19,20,000
year
ADD: non cash
items
1)Depreciation 1,03,250 1,03,250 1,03,250 1,03,250 1,03,250
2)Preliminary 1,00,000 87,000 89,000 85,000 1,10,000
exps. 3,24,849 4,11,000 4,68,000 5,10,000 5,76,000
3)Provision of
taxation
CASh FLOw 16,10,929 19,71,250 22,20,250 23,98,250 27,09,250
FROM
OPERATION
ADD: Increase in
C.L.
Creditor 18,000 19,000 17,000 17,500 20,000
Bills Receivable 12,000 12,500 10,000 15,000 18,000
Decreasein stock 6,000 5,000 6,500 7,000 8,500
TOTAL 36,000 36,500 33,500 39,500 46,500
Less:Increase in
C.A 90,000 92,500 94,000 1,10,000 1,18,000
Bills Payable 20,000 18,000 25,000 20,000 22,000
Debtors
TOTAL 1,10,000 1,10,500 1,19,000 1,30,000 1,40,000
Net cash flow
from operations 15,36,929 18,97,25 21,34,75 23,07,75 26,15,75
0 0 0 0
14.B.E.P. ANALySIS

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(1) (2) (3) (4) (5)
PARTICUL 60% 70% 80% 90% 100%
AR
SALES 31,59,000 36,85,500 42,12,000 47,38,500 52,65,000
VARIABLE
COST:-
1. Raw 1,00,000 1,16,667 1,33,334 1,50,000 1,66,667
Material
2. Wages 3,60,000 4,20,000 4,80,000 5,40,000 6,00,000
3. Repairs & 48,000 56,000 64,000 72,000 80,000
Maintanenc
es
4 Selling 24,000 28,000 32,000 36,000 40,000
expenses
TOTAL 5,32,000 6,20,667 7,09,334 7,98,000 8,86,667
FIXED
COST:-
1. Rent & 1,00,000 1,16,667 1,33,334 1,50,000 1,66,667
insurance
2. Admini. 32,400 37,800 43,200 48,600 54,000
Expens.
3. 1,03,250 1,20,459 1,37,667 1,54,875 1,72,083
depreciation
4. intrest 38,500 44,917 51,333 57,750 64,167
TOTAL 2,74,150 3,19,843 3,65,534 4,11,225 4,56,917
contributio 26,27,000 30,64,833 35,02,667 39,40,500 43,78,333
n
P.V. Ratio 83.16 83.16 83.16 83.16 83.16
B.E.P Sales 3297 3846 4396 4945 5494
CALCULATION OF BEP FOR CURRENT yEAR:-
1. Contribution = sales – Variable Cost.
= 31,59,000 – 5,32,000
= 26,27,000

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2. P.V.Ratio = Contribution × 100
Sales
= 26,27,000 × 100
31,59,000
= 83.16
3. BEP Sales = Fixed Cost
P.V.Ratio
= 2,74,150
83.16
= 3297
15.CONCLUSION
Day to day the use of electronic calculator is increasing due
to use of various area. So electronic calculator’s use is essential in different

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faculty. So future plan of business is develop various type of electronic
calculator i.e. scientific calculator and solar calculator which will work
without battery power and available at a reasonable price and better
qualitative goods. Everybody can use it with easily
The main is not only to earn profit but satisfaction of
customers with better qualitative goods. Thus the future of business is very
best and easily go ahead for better future prospection.