Final Project 8460430274 Nirali

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A Feasibility Report on Ice Cream
Chapter-1
INTRODUCTIO
N
K. S. School of Business Management
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What is Feasibility Study?

A feasibility study is a process designed to determine the difficulty in
carrying out a designated task. Generally, a feasibility study precedes
technical development and project implementation. In other words, a
feasibility study is an evaluation or analysis of the potential impact of a
proposed project. Five factors to be taken care off in feasibility report:
Technology and system feasibility
Technological feasibility is carried out basically to determine whether the
company has the capability in terms of software, hardware, personnel and
expertise to handle the completion of the project.
Economic feasibility
Economic analysis is the most frequently used method for evaluating the
effectiveness of a new system. More commonly known as cost/benefit
analysis, the procedure is to determine the benefits and savings that are
expected from a system and compare them with costs. If benefits outweigh
costs, then the decision is made to design and implement the system.
Legal feasibility
Determines whether the proposed system conflicts with legal requirements
e.g. data processing system must comply with the local data protection acts.
Operational feasibility
Is a measure of how well a proposed system solves the problem, and takes
advantages of the opportunities identified during the scope of definition and

how it satisfies the requirements identified in the analysis phase of system

requirement.
Market feasibility
Market feasibility study typically involves testing geographic locations for
developing any project, and developers often conduct market studies to
determine the best location within a jurisdiction. It takes into account the
importance of the business in the selected area.
Resource feasibility
This involves questions such as how much time is available to build the new
system, when it can built, type and amount of resources required,
dependencies, etc. Contingency and mitigation plans also are stated here.
Cultural feasibility
In this stage, the projects alternatives are evaluated for their impact on the
local and general culture. For example, environmental factors need to be
considered and these factors are to be well known. Further an enterprises
own culture can clash with the results of the project.


Steps of Feasibility Report

As a part of our feasibility study we conducted the following steps: We visited various ice-cream manufacturers:
Vadilal, Gandhinagar.
Havmor, Ahmedabad.
Janta icecream,Ahmedabad.
We did a market survey of 200 consumers & 3 dealers.

Selection of Project
Each and every individual firm, industry and nation wants to be ahead.
Adequate and amiable labour force, proper transportation and other
infrastructural facilities help the business unit to bloom.
Project report on the feasibility on ice-cream was allotted by the college
authority as a part of practical study curriculum to group J. We did market
research about the ice-cream in the various areas of Ahmedabad for getting in
depth knowledge and to get the clear ideas of activity relating to project. We
visited the production unit Vadilal ice-cream plant situated in Gandhinagar.
The population growth, urbanization, income growth, high income elasticity
of demand and changes in food habits that fueled the increase in ice-cream
consumption are expected to continue well into the new millennium.

Project at a glance
Name of the firm :
T-20 Icecream
Address
Pavilion Parlour,
Near Keshavbagh Soc.,

Premchandnagar char rasta,
Judges Bunglow Road,
Bodakdev,
Ahemdabad.
Registered Office :
No
Constitution
Partnership Firm
Status of industry :
Total cost of project:
Manufacturing
15140011RS.
Logo:
Tag line
RUNSPINGET BOWLED!!!

Chapter-2
HISTOR
Y


HISTORY OF ICE-CREAM
Once upon a 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 delicious of the day, had been simply superb, but
the cup-de-grace was yet to come. After much preparations kings 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 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 icecream 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
flavours. It also holds the distinction of being the fastest growing new
flavours in the history of the ice-cream industry.
In 1991, another flavour phenomenon was created chocolate chips
cookie dough ice-cream, which combines the best part of the chocolate chip
cookie.
This ice-cream becomes very popular in our 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 waffle
ice-cream cone was introduced at the St. Louis worlds 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.
10

The first frozen dessert is credited to Emperor Nero of Rome. It was a

mixture of show and nectar, fruit pulp and honey.
During the stuffy Victorian period, drinking soda water was considered
improver so on 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.
HISTORY OF ICE-CREAM INDUSTRY

Though India has a low per capita Ice-cream consumption of 300 ml
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 AsianPacific ice-cream market was worth $13 billion in terms of retail value and
5128 million liters in terms of volume coming to India, the Indian ice-cream
industry is currently estimation to be worth Rs. 2000crores, 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 and 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 and 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 at1%, Vadilal at 12% and mother dairy at 8%.
Despite a decent growth rate, the ice-cream industry faces challenges of low
per capita income.
11

CHAPTER-3
LEGAL
FEASIBILITY
12

Legal Documents
Legal document includes the following: Partnership deed
Sanction letter of loan
License
Labour registration certificate
Small scale industry license
Income tax registration number
No objection certificate from:
Engineers
Chief of fire departments
13

Partnership Deed
Partnership is an association of two or more people who come together for
achieving some common goals. A written document which binds them and
gives a legal enforcement right is called a partnership deed. In this deed 5 are
active partners and 6 are sleeping partners. Our partnership deed is as
follows:
In all we are 11 partners. A partner may be admitted or may retire with the
mutual consent of all other partners.
Date:
This deed of partnership executed on 1st APRIL,2012.
Name and address of all the partners are as follows:
1) Priyanka Parmar
A/404, Pratyaksha Appts,
Nava Vadaj,
Ahemdabad-380013
Ph.(R)079-27642030
2) Hetal Parmar
B.O.Qtrs 9/33,
D.C.C. Colony,
Digvijaygram, Sikka,
Jamnagar-361140
Ph.(M)9033485654
14

3) Gedia Nimisha S.
69/sector-1,
Nirnaynagar,
Ahemdabad
Ph.(M)8866839893
4) Payal K Gamit
C-1/8, Jail staff Quarters,
Sabarmati Central Jail,
Ahemdabad.
Ph.(M)9978179638
5) Bharat Pirabhai Nai
Ratanpura (Bhildi),Deesa,
Banaskantha.
Ph.(M)7383536451
6) Varun Vinodchandra Parmar
43- Sarthi bunglows,
Opp. Gokuldham soc.,
Chandkheda,
Ahemdabad-382424
Ph.(M)9408133550
7) Dhara Sureshkumar Prajapati
911-Golwad Lunsawad,
Dariyapur,
Ahemdabad-380001
Ph.(M)8905852373
15

8) Vaidehi Sunilbhai Raval

1868/1 Padi Pole Mandavis Pole
Manek Chawk,
Ahemdabad.
Ph.(M)8000298043
9) Khushboo Shirishbhai Shah
14/8, Virvijay soc.,
Naranpura,
Ahemdabad-380013
Ph.9724482107
10) Nirali V Jalu
Krishna Park Soc.,
Airport road,
Keshod,
Junagadh-362220
Ph.8460430274
11)
Aakash Ashokkumar Shah

2B, Shantiniketan-1,
13, Geetabaug Soc.,
Opp. Suvidha Shopping centre,
Paldi,
Ahemdabad-380007
Ph.(M)9429365855
16

Preamble:
If the deed is retrospective
We are as the aforesaid party have come together to carry on business
of ice-cream, as from and the terms and conditions of the partnership
as agreed to are hereby in writing.
Date Of Commencement: 1st April,2012
Business of Partnership:
The partnership will carry on the business of ice-cream and such other
business or businesses as the parties may from time to time determine.
Name:
The name of partnership firm shall be Pavilion Parlour and other
name or names as the parties may from time to time determine.
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 for at Judges bunglow road Bodakdev
and such other name or names as the parties from time to time
determine.
Duration:
The partnership shall be a partnership at will.
Capital:
The capital of the firm for the time being is fixed at Rs.1,51,40,011.
The partners of the firm bring amount equivalent to Rs10,00,000
17

each and other contributions as the parties may from time to time
determine.
Sharing Of Profits And Losses:
All the partners of the firm will receive or bear the profits and
losses of the firm for the full and final settlement of the claim in the
profit of the firm and such ratio of contribution as the partners may
time to time determines. Current ratio is equal between all the
partners.
Interest 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 sec40(b) of the Income Tax Act.
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.
(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.
18

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 partnership shall be entitled to dissolve the partnership in the
event of the other commiting 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 suchas
may be registers from time to time with the registrar of firms. On
the dissolution of firm under the 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 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
choose by each partners and the representatives of the 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.
19

To,
Pavilion Parlour,
Near Keshavbagh Soc.,
Judges Bunglow Road,
Bodakdev,
Ahemdabad.
Dear sir / madam,
Sub: offer letter for mortgage loan application no 1132 Branch code:
Ahmedabad
Thank you for choosing BANK OF BARODA. We are pleased to

inform you that with reference to the above application, we have in principle
sanctioned you a loan , the details of which are given below.
Type of loan:
Mortgage loan
Loan amount sanctioned:
4116000
Term of loan:
60 months (5 years)
Interest rate type:
variable
Mortgage loan reference rate:
14%
Number of equated monthly installments (Emi): 60

Amount of each Emi:
116620
Security:
25, judges bungalow, Ahmedabad 380006
Fees on part pre-payment :
25% there off in any financial year.
Fees on full & final pre-payment:
Nil
We confirm the above terms and conditions and accept the loan approval.
(Mr. H. A. Panchal )
Branch Manager
20

EVALUATION OF PROJECT
BUSINESS ENVIRONMENT ANALYSIS
Since 1961 the industry has grown rapidly and tremendously. Research
has shown that ice-cream products are stable in the environment. During use
when they are properly disposed off 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. These constituents are
combined to constitute environment for the given organization. Environment
includes all the conditions, circumstances and influence surrounding the total
organization or any of its part. Environment can be defined as environment
consist of atoms and molecules, agglomeration of things in motion, alive of
man and emotions of physical and social law, social ideas, norms of actions
of force and resistance. There number is infinitive, they are always present
and they are always changing.
There are many forces in environment which influents the working of
the organization. These forces may be classified as economy, legal, political,
technological, culture etc. These forces have an important effect in
determining the resources available for the inputs and the most appropriate
organizational output. The organizational environment can be broadly
classified into followings categories:-
21

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 availability and change in the market place and so
on. Which of this external factor will have particular significance 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:
22

PEST ANALYSIS
POLITICAL ENVIRONMENT:Frequent changes in the central and the state government leads to
changes in the industrial policies. The environment compose of regulation,
government spending and patent protection even personal thinking of
particular political leader may affect adversely or favourable to this service
industry.
ECONOMICAL ENVIRONMENT:As far as economic aspect is concerned the entrepreneur of the icecream industry has to fight the tough competition. However, there are all
together two kinds of sectors i.e. organized sector and unorganized sector.
The companies like Vadilal, Amul etc. can be included in the organized
sector and the local companies like janta, patel etc
are included into
unorganized sector.
If we further clarify then, the company can enjoy the new market, as well as
the replacement market also.
SOCIAL FACTORS:Our ice-cream product is made up of hygiene raw materials which will
not effect society in any bad manner. Our wastages are re-used to make new
ice-cream.
TECHNICAL ENVIRONMENT:One of the most important forces shaping peoples lives is technology.
The latest technology can excel their growth. Every new technology is a force
for creative destruction. Moreover, the innovating process always leads to
23

the increase in the investment. Technological inventories are introduced for

higher productivity, lower cost and more revenues. Technology refers to sum
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.
In past days every process is done manually but now-a-days it is done
automatically.
24

SWOT ANALYSIS
STRENGTH
OPPORTUNITY
1 .Quality
1. Growing ice-cream industry
2. Knowledge
2. Changes in the consumer taste and
3. Pricing
preference
4. Packaging
WEAKNESS
THREAT
1. Low advertising budget
1. Availability of substitute goods
2. Manufacturing process is not
2. Health conscious and awareness
completely automatic
3. Hygiene problem
25

CHAPTER-4
TECHNICAL
FEASIBILITY
26

What is technical feasibility?

It is a flow chart of concerns proposed products and service and move
through your business to physically reach your market.
The assessment of technical feasibility is based on 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.
(A) Machines
(B) Plant Layout
(C) Location Analysis
(D) Raw Material
(E) Supplier
(F)Manufacturing process
27

A. Machines:
Milk Boiler Machine
Price
Rs. 150000
Capacity
500 ltrs
Durability
10 years
Dimensions
4 x 5
28

Flavour milk tank
Price
Rs. 15000
Capacity
500 ltrs
Durability
10 years
Dimensions
2 x 2
29

Synergys Continuous freezer
Price
Rs. 350000
Capacity
500 kg
Durability
10 years
Dimensions
3 x 4
30

Mixer machine
Price
Rs. 350000
Capacity
500 kg
Durability
10 years
Dimensions
3 x 4
31

Continuous freezer
Price
Rs. 350000
Capacity
500 kg
Durability
10 years
Dimensions
3 x 4
32

Hardener
Price
Rs. 800000
Capacity
500 kg
Durability
10 years
Dimensions
10 x 8
33

(B) Plant Layout:
34

(C) Location analysis:

Our location:
Pavilion Parlour
Near Keshav Bagh Society,
Judges Bunglow road,
Bodakdev,
Ahmedabad.
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
So to locate business unit after the deep study to facilitate acquisition of best
raw material, cheap labour and basic amenities at the minimum cost.
Criteria for selection of location:
1. Near to target customers
2. Utility and facilities:
Electricity: connection from torrent power
Water: water supply from AMC
3. Competition : least competition faced near our location
We have selected this location as it is very near to S.G Highway and is tight
spot of our target audience. As well as it is situated nearby a residential area
which would be beneficial to us.There is easy connectivity and affordability
in terms of rent, electricity and other amenities.
35

(D) Raw materials:

NAME
QUANTITY
PRICE
Milk
1 ltr
Rs.25
American almond
1 kg
Rs. 400
Walnuts
1 kg
Rs. 700
Raisin
1 kg
Rs. 250
Cashew nuts
1 kg
Rs. 640
Sugar
1 kg
Rs. 32
Glucose
1Kg
Rs.175
Skimmed milk powder
1Kg
Rs.220
Cocoa powder
100gm
Rs. 80
Essence
10 ml
Rs.150
Chocolate slab
1Kg
Rs.150
Cream
1Kg
Rs.180
36

(E) Suppliers:
1. Machines
Airtemp refrigeration services .
4, Kotadiya estate,
Opp, Raj rani beda works ,
Nr, Corporation garden ,
Ambica nagar odhav ,
Gidc, Ahmedabad.
(079)22977999
2. Raw materials:
Gujrat general foodchem Pvt.Ltd.
427,Arun chambers,
Choka bazaar,
Kalupur,
Ahmedabad
(079)-22130225
(079)-22136595
37

(F) Manufacturing Process:
Milk
boiler
machine
Flavour
milk Tank
Synergy 's
continous
freezer
Mixer
machine
Continous
freezer
Hardner
Scoop
making
and
cutting
Process starts as soon as milk and other ingredients are made available.
Step 1: Mix making:- Mix making begins with taking of milk and cream in
stainless steel pasteurizer. Other different key ingredients like SMP( skimmed
milk powder), sugar, stabilizer-emulsifiers are added for proper mixing and
quick dispersion at different temperatures.
Step 2: Flavouring:- the flavour tank are series of stainless steel tanks of
500ltrs capacity. Here the mix is transformed from
unflavoured to
euphorically flavoured.
Step 3: Once the proper amount of flavouring is added, the mix is pumped to
freezer.(-40 C is freezing temperature for smooth icecream)
38

Step 4: Mixer:- we are keenly interested in coming upwith new chunky

things to feed in the mixer from loads of chocolate to dry fruits.
Step 5: Hardening tunnel:- Before the packed icecream can be stored or

transported, it needs to be frozen further- from a semi finished frozen state at
22C to a fully frozen solid state of at least -25C in the cold room. The
process is called hardening and it happens in the the hardener.
Step 6: Scoop making and Cutting slots for family pack:- This is done
manually by workers using scoop equipments and knifes.
39

CHAPTER-5
HUMAN
RESOURCE
FEASIBILITY
40

MANPOWER PLANNING
Man power planning is indispensable for an organization to perform the
activities efficiently as well as in a way that produces desired results.
Capital strategy and research development do not always work and when they
do not work what we can fall back on is our human power ,human resource
and human talents that the company is having for any industry organization
like machine ,man power is also the consider one of the most important
aspect which play a vital role for its overall growth and development and
hence our organization is also based on the same concept or principle.
We would definitely create the feelings of oneness into the employees

towards the organization through various training program.Thus we would
consider and implementing.The concept,people are primer source of
competitive advantage.We are medium scale organization.We are having a
great organization structure.
41

ORGANIZATIONAL STRUCTURE
Partner
s
Manager
Productio
n Dept.
Technicia
n
Skilled
Workers
Marketing
Dept.
Supervisor
Unskilled
Workers
Sweepers
Sales
Executive
Finance
Dept.
Accountan
t
Shop
Executive
Peon
42

JOB ANALYSIS
JOB DESCRIPTION
Job description is a broad, general, and written statement of a specific job,
based on the findings of a job analysis. It generally includes duties, purpose,
responsibilities, scope, and working conditions of a job along with the job's
title, and the name or designation of the person to whom the employee
reports. Job description usually forms the basis of job specification.
A job description may include relationships with other people in the
organization: Supervisory level, managerial requirements, and relationships
with other colleagues.
JOB SPECIFICATION
A statement of employees characteristics and qualification required for
satisfactory performance of defined duties and tasks comprising a specific job
or function. Job specification is derived from the job analyses.
MANAGER
Job Description
Job title: Manager
Reports to: Partners
Supervises: All department
Functions:
Co-ordinate with different department workers, setting up targets and
corrective actions to achieve them.
Handling emergency affairs.
Approve organizational change and approving policies.
43

Duties:
Check the accomplishment of various targets.
Implementing policies.
Any organizational failures or inability to convert plan into action.
Job Specification:
Education:
MBA
Experience:
minimum 5 years in similar role
Physical health:
Smart and energetic
SUPERVISOR
Job Description
Job title: Supervisor
Reports to: manager
Supervisor: Skilled worker and unskilled worker
Functions:
Try to apply innovative method.
To keep a record of raw material required and give order to the
department.
To give instruction to the worker and to the workers and to see whether
they are working properly or not.
Duties:
To create a good loyalty for the product in the market.
To guide workers and train them on the work.
To report the technician about the work.
44

Job Specification:
Education: B.sc
Experience: minimum 3 years
Mental ability: To have knowledge in the Field of production. He should be
good at interpersonal communication.
ACCOUNTANT
Job Description
Job title: accountant
Reports to: manager
Functions:
To maintain all the records and files of the day to day requirements.
To prepare the salary structure.
Duties:
Responsible to submit all the accounting records and report to the
manager.
Responsible to any mistake committed in making the salaries of
employees.
Job Specification:
Education: M.com having good knowledge of account.
Mental ability: Should be hardworking and capable of understanding the
numerical data easily.
45

SALES EXECUTIVE
Job Description
Job title: Sales executive
Reports to: manager
Functions:
To make strategies for the market.
To decide various promotion schemes.
To decide advertising budget.
Duties:
Keep records of past sales volume and customers.
To maintain good relation with dealers.
He decides the price by analyzing the market competitors.
Job Specification:
Education : Graduate in sales or marketing
Mental ability: energetic, good communication skill and good decision
making
SKILLED WORKERS
Job Description
Job title: Skilled Workers
Reports to: supervisor
46

Functions:
To perform the work efficiently given by the supervisor.
To do work with co-operation.
To take care of raw material and machines.
Duties:
To follow the instruction of the supervisor properly.
To inform the supervisor immediately in case of any default.
Job Specification:
Education: B.E./diploma in electronics.
Experience: not required
Mental ability: capable of understanding the working of the machine.
Unskilled workers:
Job Description
Job title: Unskilled Workers
Functions:
To perform the work efficiently given by the supervisor.
To do work with co-operation.
To work in production process.
Duties:
To follow the instruction of the supervisor properly.
To inform the supervisor immediately in case of any default.
47

Job Specification:
Education: S.S.C. /H.S.C. passed
Experience : not required
OTHER:
This category includes all the other personnel such as the sweeper and peon.
Job Description
Job title: Other
Functions:
To do all work that has been assigned by their seniors.
To be punctual and perfect about their work.
Duties:
To work honestly with his full capacity.
Responsible for any mistake committed by him.
Job Specification:
Education: S.S.C. / H.S.C. passed
Experience: not required
Mental ability: very strong to work for.
48

SALARY STRUCTURE
No.
Designation
Persons
Salary p.m.
Salary p.a.
per person
1
Manager
20000
240000
Supervisor
10000
120000
Technician
10000
120000
Sales Executive
7500
180000
Shop Executive
5000
120000
Accountant
6000
72000
Skilled Worker
4000
240000
Sweeper
2500
60000
Peon
2000
24000
49

MANPOWER REQUIREMENT
Dept.
Particulars
Years
2012-13
2013-
2014-
2015-
2016-
14
15
16
17
PRODUCTION DEPARTMENT
Technician
Supervisor
Skilled
Accountant
Sweeper
Peon
Workers
Unskilled
Workers
MARKETING DEPARTMENT
Sales& Shop
executive
FINANCE DEPT
Others
50

RECRUITMENT PROCESS
We are using some recruitment processes as following:
1. Friend to friend:We recruit people by preference of our employees in this method.
2. Applications:We recruit candidate on the application basis by selecting favorable
candidates in this method.
3. Through Mail:In this process candidate can directly send job application through E-mail to
our HR department.
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.
51

EMPLOYEES 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%
52

CHAPTER-6
MARKETING
FEASIBILITY
53

What is marketing feasibility?

The purpose of marketing feasibility study in to determine the
sustainability of the proposed product for profitable development and
to define optimal 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 best possible decisions, given the characteristics of your
likely customer base and competitors.
54

55

4 Ps 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 4 broad groups that we call 4 Ps of
marketing.
PRODUCT
PRICE
PLACE
PROMOTION
56

1. PRODUCT
Product is anything which is offered to market for exchange or
consumption. Product can be in different form like service, physical
product, place ideas, events, persons, organisations, information ,etc.
our product comes under the head of impulse goods ( goods that are
purchased without planning).
Product level
In planning marketing offering, the marketers need to think through 5
levels of products.
Each level adds customer value and constitutes a customer value
hierarchy.
57

Potential Product
Augmente
d Product
Expected
Product
Basic
Product
Core
Benefit
1. Core benefit:
The most fundamental level is core benefit. The service or benefit,
the customer is really buying. The core benefit of icecream 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, cone
candy, or family pack.
Due to financial constraints, we decided upon making scoops
and family pack only.
3. Expected products:
At the third level, the marketer prepares an expected product, that
is, asset of attributes and conditions buyers normally expect when
58

they purchase the product. The expected product of icecream is as

under:
Various fruit flavors like green apple, custard apple,
watermelon, litchi
Sugar free
Fat free
4. Augmented product:
At the fourth level, the marketers prepare an augmented product
that exceeds customer expectation. In 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
the order to make it competitive and attractive. It offers the
additional benefit.
In case of icecream augmented product is:
Customised icecream
Icecream in various shapes
5. Potential product:
At the fifth level stands the potential product, which encompasses
all the possible augmentations and transformations the product
search for new ways to satisfy customers and distinguish their offer.
Here, innovations play a very important role.
Here we have created ice cream flavor on basis of cricket theme.
E.g. All rounder chocolate, Not out nuts.
59

Product Mix
Product mix is a set of all the products and items that seller offer for
sells. Product mix is considered of width, length, line, depth, and consistency.
All rounder
Chocolate
Googly
Strawberry
Scoop
Bowled
Blackcurrent
Not Out
Nuts
Catch out
Vanilla
Ice creame
All rounder
Chocolate
Googly
Strawberry
Family pack
Bowled
Blackcurrent
Not Out
Nuts
Catch out
Vanilla
60

A product mix related to ice cream is as follows:
1. Product lineProduct line refers to always particular company. In our icecream

product line is icecream.
2. Product widthIt refers to how many product line the company carries i.e. quantity of
product. In our icecream product width is one.
3. Product lengthIt refers to total number of items in product line. In product line, we
ignore the product sizes and consider the product the product varieties.
Our product length is 5:
All rounder Chocolate
Googly Strawberry
Bowled Black current
Not Out Nuts
Catch out Vanilla
4. Product depthIt refers to how many varieties are offered of each product in line.
We are offering two types, in which our icecream will be sold i.e.
scoop and family pack.
All the flavours that are we offering in scoop are same for that of
family pack also.
5. Product consistency:It refers to how closely relate the various product lines are in end use,
production requirements, distribution channel.
61

2. 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 companys
marketing strategy.
Pricing policy
Our main objectives are:1. Maximisation of market share:-Our foremost attention is to grab the
greater market share to become one of the prospective competitors to
other players.
2. Survival:- this is a short term objective as we would be facing fierce
competition
3. Profit maximisation:-to earn marginal profits to expand and further
diversify our product line.
4. To divert the preference of people from price to flavour and taste by
keeping affordable price.
62

Price list:
Scoops: (Single Scoop)
Catch out Vanilla
Rs.15
Googly Strawberry
Rs. 15
Bowled Black current
Rs. 30
Not out Nuts
Rs. 18
Rs.20
Family Packs:
(750ml)
Catch out Vanilla
Rs. 70
Googly Strawberry
Rs.70
Bowled Black Current
Rs.90
Not out Nuts
Rs.150
Rs.100
63

3. PLACE
It covers the channels from manufacturing house to the customers and
also area covered by the product like where the product is sold. It also
covers where and how the company store its stock like information of
warehouses
Distribution channel
Marketers face many complexities in designing their distribution
channels. In some markets the distribution system is complex and hard
to penetrate, consisting of many layers and large number of
intermediaries.
As we are launching our icecream in the market and due to
financial constraint we have set up an icecream parlour with
manufacturing unit beside it.
Future prospectus
In future we are planning to set up numbers of parlours in various
areas of Abad with a centralised manufacturing unit.
64

Old
Youth
Children
Pavilion
Parlour
4. PROMOTION
Promotion refers to the activities designed by the organisation
stimulate quicker or greater purchase of services by customers.
In marketing promotion means all those tools through which the
marketer communicates its product to the consumer. It also includes
different means that the uses to increase the sale of his products.
Effective promotion can be done through following five tools:
65

Advertisement
Public Relation
Personal
Selling
Sales
Promotion
Direct
Marketing
Advertisement:
The word advert explains that:
A-Active watch
D-develop relation
V-velocity
E-estimate
R-responsible
T-timely
Advertising is non personal form of marketing with identified sponsor .
66

Today the market is of innovators i.e. how you can present your
product in the most creative in unique way to the target customers so that
they are easily influenced.
We have also opted for innovative and creative ideas to advertise our
product to generate the preference for our product.
Sales promotion:
We have strike a deal with Snapdeal Abad to promote our
icecream.
30% discount on order worth Rs.250 or more
10% discount on family packs or takeaways.
Therefore total cost for placing ad in Snapdeal would cost us Rs. 34500
Direct marketing:
Vehicles and pamphlets used in areas where our target customers are
likely to get attracted like university area, school campuses, near
restaurants ,etc.
Vehicles would cost worth Rs. 24000
Pamphlets would cost us worth Rs. 450
Rickshaw Advertising worth Rs. 600
Hand carts on Rent worth Rs. 12000 for 4 carts
5 MS OF MARKETING
67

MISSION
MEASURE
MENT
MEDIA
MONEY
MESSAGE
68

1. MISSION:
Mission consists of the central objective of advertising. It
answers the questions why are we doing advertising? Every
company has its own advertising objective whether it is new or
existent. Our advertising objectives are:
1. To create consumer awareness
2. To occupy a favourable image in minds of target market
3. To attract the consumers
4. To encourage immediate sale
2. MONEY
It refers to how much amount to be spent behind advertising.
The cost of advertising is different for different products. It high
for those products which are highly substituble.
As far as our product is concerned following are the factors to be
considered while deciding the advertising budget:
a) Stage in product life cycle: we are just launching our icecream in
the market. Icecream being highly substituble product needs to be
heavily advertised.
b) Advertising frequency: to withhold the attracted the customers,
advertisement should be made effective and brought to attention
repeatedly
c) Outlet setup: we are planning to make our parlour a theme parlour
with Cricket theme so we would need things to advertise the same.
d) Choose the medium of advertisement: we have opt for cheaper
ways to advertisement to reduce the cost
69

3. MESSAGE
The impact of message largely depends on how it is sold and
what is to be conveyed and hence the message generation plays
an important role in the companys image or reputation.
Tag line- RUN.SPIN.Get BOWLED !....
4. MEDIA
It refers to means through which advertiser communicates the
message to target audience in order to make them aware
regarding the product or generating brand loyalty.
The following are the advertising media that we have used for
marketing:
a) Vehicle: hired a cycle to roam around the areas of target audience
so that at least they know about the existence of our product
b) Pamphlets: it refers to giving details about product, company
name, and address in brief and send it to potential consumers.
c) Internet: we have deal with Snapdeal that is growing now a days
immensely.
5. MEASUREMENT
It refers to impact of advertising.
As we are into direct selling, potential sales will definitely reveal
the effectiveness of advertising.
70

MARKET RESEARCH
DEFINE MARKET RESEARCH:
We define marketing research as the systematic design, collection,
analysis, and reporting of data and findings relevant to a specific marketing
situation facing the company.
MARKET RESEARCH PROCESS:

Step 1: Define the Problem, the Decision Alternatives, and the
Research Objectives
The goal is to shed light on the real nature of the problem and to suggest
possible solutions or new ideas.
We conducted a market survey with an objective to figure out who are
our actual target customers and the competition we would face while
entering into market. And also to know about preference of target
customers.
Step 2: Develop the Research Plan

Designing a research plan calls for decisions on
Data sources:Primary data: Primary data is the raw data we gather from direct
customers.
We used questionnaire method to gather primary data.
Secondary data: the kind of data that has already been collected by
somebody.
We have used internet to know the price list of icecreams and
machines.
71

Research Approaches Primary data can be collected in five main ways:

1. Observation,
2. Focus groups,
3. Surveys,
4. Behavioural data, and
5. Experiments.
We have used survey method.
Research Instruments Marketing researchers have a choice of three main
research instruments in collecting primary data:
1. Questionnaires,
2. Qualitative measures, and
3. Mechanical devices.
We have only used Questionnaires for our survey with personal
interview.
Sample Survey After deciding on the research approach and instruments,
the marketing researcher must design a sampling plan.
Sampling unit: Who is to be surveyed?
We selected upon common man individually.
Sample size: How many people should be surveyed?
We surveyed 200 customers.
Sampling procedure: How should the respondents be chosen?
We chose individuals randomly.
Contact Method Once the sampling plan has been determined, the
marketing researcher must decide how the subject should be contacted:
1. Mail,
72

2. Telephone,
3. Personal interview, or
4. Online interview.
We had opted for personal interview along with online interview in
case of gathering information from suppliers.
Step 3: Collect the Information
The data collection phase of marketing research is generally the most
expensive and the most prone to error. In the case of surveys, four major
problems arise. Some respondents will not be at home and must be
contacted again or replaced. Other respondents will refuse to cooperate.
Still others will give biased or dishonest answers. Finally, some
interviewers will be biased or dishonest. Getting the right respondents is
critical.
We had personally met all the sample units and had tried to minimise
the research error.
Step 4: Analyze the Information

We have analysed data by making frequency tables and charts.
Step 5: Present the Findings

We have presented our analysed data in form of charts.
Step 6: Make the Decision

Finally after the analysis of data and interpreting it in the terms we
require the information we reached down to decision.
73

CONSUMER QUESTIONNAIRE
K.S.SCHOOL OF BUSINESS MANAGEMENT
MARKET RESEARCH ON ICE CREAM
T.Y. - M.B.A
CONSUMER QUESTIONNAIRE
Name:
Area:
Gender:
Male
Female
Age group: -
< 15
15-25
25-40
Occupation:
40-50
Student
>50
Employed
House wife
Business
Other ______________
1. Do you consume ice cream?

Yes
No
If yes then go for section A, if no then go for section B.

Section A
2. . When we talk about ice cream, which brand you prefer more?
Havmor
Vadilal
Vimal
Amul
Local brands: -
Diary Den
Kwality Walls
Trupti
Other
3. Why do you prefer that brand?
Havmor
Vadilal
Kwality
walls
Amul
Vimal
Local
Price
Flavour
Taste
Nutrition
Degree of
smoothness
74

4. What is more important while consuming ice cream:-
Least important
Most
important
Important
Price
Flavour
Brand
Taste
Nutrition
Degree of smoothness
5. Which flavor you like the most?
sometimes
frequently
every time
Vanilla
Butterscotch
Chocolate
Strawberry
Fruit Flavor
6. You consume ice cream as:

Cup
Vanilla
Strawberry
Butterscotch
Chocolate
If other,
Specify:-
Cone
strawberry
Butterscotch
Kesar pista
Chocolate
Candy
Sundae
Mango dolly
Raspberry
Kaccha aam
Chocobar
Strawberry
Orange
Black current
Chocolate
Family/party
pack
Kesar pista
Rajbhog
Kajudraksh
butterscotch
75

7. How often do you eat ice cream?

Every day
Every week
Twice/Thrice a week
Every month
8. What is your monthly expenditure on consumption of icecream?

Less than Rs.100
Rs.100-200
Rs.200-500
More
than 500
9.
From where do you get ice cream?

Malls
Factory Outlet
Retail shop
Other
10. Which is the most convenient way for you to get your ice cream?
Going to shop to get it
Getting it from handcarts/Vans
Home delivery
11. What are your expectations about icecream?
Customized icecream
New flavours
Fat free
Sugar free
Section B
1. Can you give us reason, why dont you consume ice cream?
Price
Taste
Health conscious
Allergic issues (consist of dairy product)
2. If healthier ice cream comes out, will it induce you to consume ice cream?
Yes, it will
I dont care at all
3. If home delivery service is started, will it make you to prefer ice cream more?
Yes, that would be fantastic
Does not matter much
No, bad idea
THANK YOU!!!
76

ANALYSIS
Most Preferred Brand
Most prefered brand

120
105
100
83
80
64
60
40
26
26
20
6
0
Havmor
Vadilal
Amul
Kwality walls
vimal
Local
After conducting survey on 200 different samples we came across that

most preferred brand of icecream is Havmor followed by Amul and then
Vadilal.
Local and Kwality walls are preferred indifferently and Vimal is least
famous as it has just launched.
77

Reason For The Preference of Havmor
100
85
90
86
80
70
60
50
49
47
40
41
30
20
10
0
Price
Flavour
Taste
Nutrition
Degree of smoothness
Reason for preference of Havmor
Havmor is mostly preferred because of its variety of flavours offered and the
taste.
Reason for Preference of Vadilal

50
45
40
35
30
25
20
15
10
5
0
43
40
43
35
28
Price
Flavour
Taste
Nutrition
Degree of
smoothness
Reason for preference of Vadilal
Vadilal , a tough competitior to Havmor is also preferred due to its taste,

variety of flavours and also price.
78

Reason for preference of Amul

50
45
40
35
30
25
20
15
10
5
0
47
43
44
38
37
Price
Flavour
Taste
Nutrition
Degree of
smoothness
Reason for preference of Amul
As from above chart we can see that Amul is being preferd for almost all
features e.g. nutrition, degree of smoothness, et
Reason for Preference of Kwality walls

30
25
25
21
20
17
15
10
13
12
5
0
Price
Flavour
Taste
Nutrition
Degree of
smoothness
Reason for preference of Kwality walls
From the information we gathered we came to know that kwality walls is less
preferred to its high price but also preferable due to its taste.
79

Reason for Preference for Vimal

7
6
5
4
3
1
0
Price
Flavour
Taste
Nutrition
Degree of
smoothness
Reason for preference of Gokul
It is clearly evident from above chart that Vimal is mostly prefers due to its
affordable price.
Reason for preference of Local

14
12
11
12
10
10
8
6
4
2
0
Price
Flavour
Taste
Nutrition
Degree of
smoothness
Reason for preference of Local
Local icecream is being preferred due its taste , easy availability and
affordable price.
80

Age v/s brand

( less than 15 years)
2.5
2
1.5
1
0.5
0
Gokul
Local
0
Havmor
Vadilal
Amul
Kwality walls
Age v/s brands-less than 15
Among the 200 sample size, we came across 5 kids under 15 years of age
who mostly preferred Havmor and Vadilal in comparison to others.
15-25 years
80
70
70
60
60
50
50
40
30
20
19
10
15
2
0
Havmor
Vadilal
Amul
Kwality walls
Gokul
Local
Age v/s brands-15-25
From the above chart , we conclude that Havmor and amul is being preferred
by youth
81

25-40 years
12
10
10
8
7
6
4
0
Havmor
Vadilal
Amul
Kwality walls
Gokul
Local
Again, the working class people ageing 25-40 years prefer Havmor to other
brands
40-50 years
8
7
4
3
2
0
Havmor
Vadilal
Amul
Kwality walls
Gokul
Local
Havmor again stands first in preference but this age group also like to prefer
Vadilal and Amul
82

50 and above
7
6
3
2
1
0
Havmor
Vadilal
Amul
Kwality walls
Gokul
Local
Age v/s brands-More than 50
Here we can see that Havmor captures the major market share followed by
Vadilal and amul
Importance Level
Least important
60
50
50
38
40
30
20
19
20
Nutrition
Degree of
smoothness
12
10
0
Price
Flavour
Brand
Taste
Importance level-Least important
From above chart we conclude that the desire for consumption of icecream is
not motivated by price or brand. People consume icecream whenever they
feel to have it and irrespective of brand, that means they consume those
icecream which are easily available to them.
83

Important
70
60
58
55
52
53
50
38
40
35
30
20
10
0
Price
Flavour
Brand
Taste
Nutrition
Degree of
smoothness
Importance level- important
From the above data we interpret that importance level differs from person to
person on the basis of preference of an individual.
Most important
120
100
94
100
80
65
53
60
40
59
29
20
0
Price
Flavour
Brand
Taste
Nutrition
Degree of
smoothness
Importance level-Most important
It is clearly evident from the above data that the desire to consume icecream
is motivated by its flavour and taste.
84

Which Flavour you Consume Sometimes?

100
90
90
80
70
60
60
49
50
48
40
33
30
20
10
0
Vanilla
Butterscotch
Chocolate
Strawberry
Fruit flavour
Which flavour you prefer sometimes?
Flavours that are consumed sometimes are chocolate followed by vanilla
Which Flavour you Consume Frequently?

60
49
50
44
40
40
30
26
24
20
10
0
Vanilla
Butterscotch
Chocolate
Strawberry
Fruit flavour
Which flavour you prefer frequently?
Ranked high among frequent consumption of flavours is butterscotch and

strawberry.
85

Which Flavour you Consume Everytime?

120
107
100
80
60
40
31
33
26
26
20
0
Vanilla
Butterscotch
Chocolate
Strawberry
Fruit flavour
Which flavour you prefer everytime?
The all time favourite flavour is chocolate.
Flavours of cup:
80
70
67
64
60
50
40
40
40
30
20
10
0
Vanilla
Strawberry
Butterscotch
Chocolate
Other
Cup
Chocolate and strawberry are consumed highly in cups.
86

Flavours of cone:
80
68
70
60
47
50
40
30
24
20
8
10
0
Strawberry
Butterscotch
Kesar pista
Chocolate
Other
Cone
Chocolate and butterscotch cones are consumed highly.
Flavours of candy:
70
65
60
50
40
30
30
27
20
10
5
0
0
Mango dolly
Rasberry
Kaccha aam
Chocobar
Other
Candy
Chocobar, the most famous candy ranks high in consumption of candies

among people.
We have opt for cups only and not cones for our product line due to
additional charges incurred on biscuit cone and candy sticks and additional
machine to be installed for same.
87

Flavours of sundae:
0
20
Sundae
Strawberry
Sundae Orange
Sundae Black
current
Sundae Chocolate
67
34
Sundae Other
Most favourite sundae is chocolate followed by strawberry
Flavours of party pack/ family pack:
60
49
50
40
40
34
30
20
15
10
0
Kesar pista
Rajbhog
Kajudraksh
Butterscotch
Other
Family/Party pack
When it comes to family treat, kaju draksh tops the chart of family pack.
88

Frequency of Consumption:
Frequency of consumption
9
Every day
54
64
39
Every week
Twice/thrice a week
Every month
Consumption pattern we get from above data shows that icecream is

consumed on weekly basis. There are few people only who consume
icecream everyday whereas significant number of consumers consume it
monthly.
89

Monthly expenditure on icecream consumption:
Monthly expenditure
Less than
100
18
56
28
64
100-200
200-500
More than
500
Our sample survey was limited to Ahmedabad city only, and Abad being a
tropical zone and has rising temperatures therefore there are people who
spend more than Rs. 500 monthly on just consumption of icecream which
give us an average expenditure of Rs. 100-200 per person in a month.
90

How do you get your icecream?
How do you get your icecream?
2
13
Going to shop
Getting from handcarts
home delivery
151
As we can see that going to shop and getting icecream is most convenient
way of getting icecream.
One of the significant information that we interpreted from the above data is
home delivery service has greater prospective of expansion and growth and
we will be looking forward to it.
91

Expectations from icecream:
Expectations from icecream

92
100
90
80
70
60
50
38
40
30
20
16
20
10
0
Customised
New Flavour
Fat free
Sugar free
New flavours ranks high among the expectations of people from icecream.
92

DEALER ANALYSIS
Name of dealer: Vadilal Industries Ltd.
Address:-Vadilal Industries Ltd, Pundhra, Near Gandhinagar
Type of firm- Company
Per month production capacity:
In peak season-70000 ltrs icecream
In off season- 25000 ltrs icecream
Raw materials:
1. Milk: getting from nearby dairy on annual contract basis. Every day
approx consumption of milk amounts to 22000 ltrs with 6% fat content
2. Skimmed powder: getting from near by dairies
3. Nuts: from local whole salers and from Goa and importing only
almonds from America.
4. Stabilizers and Emulsifiers: from suppliers
5. Sugar: from local market
6. Essence : from suppliers
Machines:
1. Pasteurisers- Pasteurisering department with capacity of 22000 ltrs at
a time
2. Homogenisers- with capacity of 18000 ltrs
3. Candy machine:
Automated: with capacity of 6000 candies per batch
Manual: with capacity of 1800 candies per batch
4. Cone machine: fully automated with capacity of 1200 cones per batch
5. Cup filling machine: automated drainage of basic mix with manual
filling.
93

6. Hardening tunnel: 6 hardening tunnels with temperature ranging

between -30 to -40
7. Oven: for baking cakes with capacity of 12 cakes per batch
Equipments and moulds:
1. Cassata cut: with 3 moulds in single equipment
2. Moulds: all kinds of moulds for manual candy machines.
Manpower requirement:
In peak season: 4 persons per machine plus administrative staff
In off season: 2 persons per machine plus administrative staff
Skilled workers are appointed on annual contract basis by production
department fulfilling all the labour laws.
Semi skilled workers are appointed by supervisors.
Sweepers and other cleaning staff also to be appointed by supervisor.
Administrative staff recruited by top management by placing ads in
daily newspaper.
Salary structure:
Skilled workers
Rs.165
Semi skilled workers
Rs.150
Unskilled workers
Rs.100
Administrative staff
Information not revealed
Vadilal takes all the safety measures required. Like caps and gloves for
workers to adhere to quality measures.
They store milk at storage tanks for smooth flow of production
They also store icecream at storage houses with temperature of -18 and also
with facility of direct loading to trucks.
Transport vehicles are hired on annual contract basis.
Electricity consumption information was not revealed. They use 3 generators.
94

Name of dealer: Havmor

Address: Near S.T. stand, naroda, Ahmedabad
Type of firm: private company
We were allowed to visit havmor industries but due to their policy we
were not given any information regarding production, sales or manufacturing
process.
We had just seen the industry from gallery.
Name of dealer: Janta icecream
Address: opp. Panchalnagar, Dudheshwar, Ahmedabad.
Type of firm: private company
Per month production capacity:
In peak season: 1500-2000ltrs icecream
In slake season: 500-600ltrs icecream
Raw materials:
1. Milk: getting from local dairy, everyday consumption of milk 1000ltr
2. Skimmed powder: getting from local market
3. Nuts: from local market
4. Chocolate slabs: from supplier
Machines
1. Cup filling machine: automated drainage of basic mix with manual filling.
2. Candy machine: Manual: with capacity of 500 candies per batch
3. Milk Boiler Machine
4. Flavour milk tank
5. Synergys Continuous freezer
6. Continuous freezer
7. Hardner
95

Salary to workers
150 Rs to 400 Rs on daily basis according to their work experience.
Manpower requirement
In peak season 7 to 8 workers
In slack season 3 to 4 person
Electric consumption
Approx 55000rs per month
96

CHAPTER-7
FINANCIAL
97

FEASIBILITY
-I
ASSUMPTIONS
We have considered 300 working days of production in each year.
The loan from Bank Of Baroda is taken at 14% interest rate p.a. and
repayable in 5 years with equal monthly installments of Rs.8232000/ All the partners are working partners and they have equal liabilities as well
as equal share of profit.

Salary is calculated after considering yearly increase in pay as well as
increase in number of employees as per the Human Resource requirements.
One of 11 partners one is manager, accountant and supervisor while two

of them are Sales Executive as explained in the Manpower Planning and
Organization Chart and will be eligible for the Salary in due course as per
the terms of engagement.
Production capacity will increase as per the demand of consumers.

Tax provision is 30.90% without any Surcharge as the same is not
applicable.
Depreciation is provided as per Income Tax Act, 1961 as Written Value
Method.
We are taking loan from relatives in the beginning of the first year and the
same is repaid in the first year itself.
98

Carriage inward & Transportation Costs is 4% while other charges are 1%
of Raw Material costs.

Bonus paid is the minimum bonus paid as per The Bonus Act.
Valuation of Inventory is made as per AS-2 (Valuation of Inventory).
Interest to Partners Fixed Capital is paid at the rate of 12% p.a. to all the
partners.
No Remuneration is given to the partners except the salaries regularly paid
to the active partners, in due course.

No Work in Process is considered as per the industry standards and
parameters.
Closing Stock of Raw Material and Finished Goods are estimated to be in
inventory for 1 month.

Debtors are valued at sales. Credit Sales is estimated at 50% of the total
sale. Credit period allowed to debtors is taken as 45 days looking to the

industry standards and parameters.
Finished Goods are valued at Cost of goods produced
We have followed the concept of Integrated Accounting System (Merging
of Financial And Cost Accounting).

Creditors for Raw Material are estimated to hold allowable credit period of
1 month.
Creditors for expenses are estimated to hold allowable credit period of 15
days.
Addition to the Working Capital is assumed to be required at the beginning
of the year.
99

COST OF PROJECT
Particulars
Amount
Land & Building
12000000
Plant & Machinery
1902500
Furniture
104900
Working Capital
1132611
Total Cost
15140011
SOURCE OF FINANCE
Particulars
Amount
Partners Capital
11000000
Loan From Bank of Baroda
4116000
Loan From Relatives
24011
Total
15140011
APPLICATION OF FUNDS
1) LAND & BUILDING:
Particulars
Land & Building at SG
Highway
Sq.Ft.
600
Rate ( per
sq. ft.)
20000
Total
12000000
100

2) FURNITURE & FIXTURE:

Particulars
Units
Amount
Total
Computer
20,000
20,000
Printer
4,000
4,000
Telephone
1,000
2,000
Air Conditioner
25,000
25,000
Water Purifier
2,000
2,000
Tube Light
28
125
3500
Fans
12
1,200
14,400
Exhaust Fan
500
3,500
Chair
10
250
2,500
Cup-Board
4,000
8,000
Table
5,000
20,000
104900
Total
3) PLANT & MACHINERY:
Particulars
Units
Amount
Total
Milk Boiler Machine
1,50,000
1,50,000
Flavor milk tank
15000
15000
350000
350000
Continuous freezer
3,50,000
3,50,000
Hardener
800,000
8,00,000
Freezer
23,000
46,000
Label Machine
1500
1500
Cold storage tank
150000
150000
Installation charges
40000
Synergy
continuous reezer
Total
1902500
101

REPAIR & MAINTENANCE :

Year
Amount
Percentage
Total
1902500
1%
19025
1617125
1.3529%
21878
1374556
1.83%
25154
1168373
2.48%
28976
993117
3.335%
33120
INSURANCE:
Particulars
Years
1
41333
35208
29995
25553
21770
Building & Plant &

Machinery
Total
102

DEPRECIATION:
PLANT & MACHINERY
Year
Opening Balance
Depreciation
Closing Balance
@15%
1
1902500
285375
161725
1617125
242569
1374556
1374556
206183
1168373
1168373
175256
993117
993117
148968
844149
FURNITURE
Year
Opening Balance
Closing Balance
104900
Depreciation
@10%
10490
1
2
94410
9441
84969
84969
8497
76427
76427
7643
68784
68784
6878
61906
94410
BUILDING
Year
Opening Balance
Closing Balance
750000
Depreciation
@10%
75000
1
2
675000
67500
607500
607500
60750
546750
546750
54675
492075
492075
49208
442868
675000
103

TOTAL DEPRECIATION
Year
Depreciation
370865
319510
275430
237574
205054
FACTORY OVERHEAD:
Particulars
Salary to
1st Year
2nd Year
3rd Year
4th Year
5th Year
120000
120000
126000
252300
258915
120000
120000
126000
252300
258915
Salary to Peon
24000
24000
49200
50460
52983
Salary to
60000
60000
63000
66150
69460
5000
8000
12000
15000
18000
5600
6300
7700
8400
9100
Power & Fuel
484000
561840
831165
1025268
1279672
Repairs &
19025
21878
25154
28976
33120
Supervisor
Salary to
Technician
Sweeper
Research
Outsourcing cost
Bonus
104

Maintenance
Insurance
41333
35208
29995
25553
21770
Depreciation on
285375
242569
206183
175256
148968
1164333
1199795
1476397
1899663
2150903
Plant &
Machinery
Total Factory
Overheads
OFFICE & ADMINISTRATION OVERHEAD:

Particulars
1st Year
2nd Year
3rd Year
4th Year
5th Year
Interest on Fixed
1320000
1320000
1320000
1320000
1320000
240000
240000
252000
264600
277830
72000
72000
75600
79300
83350
10490
9441
8497
7643
6878
75000
67500
60750
54675
49208
576240
460992
345744
230496
115248
Capital of
Partners
Salary to
manager
Salary to
accountant
Depreciation on
Furniture &
Fixtures
Depreciation on
Building
Interest on Loan
(Secured)
105

Stationery &
6420
7009
9640
10315
11037
1580
1706
1900
2024
2124
18920
21654
22758
23587
25125
Telephone
6541
6672
6805
6941
7080
Audit Fees
5000
6000
7500
8500
11000
Misc. Expenses
7000
8250
9370
10280
11360
2339191
2221224
2120564
2018361
1920240
Printing
Computer
Expenses
Electricity( Shop
Proportion)
Total Office &

Administrative
Expense
106

WORKING CAPITAL STATEMENT:

Particulars
CURRENT
ASSTES
Inventories:
i) Raw
Material
iii) Finished
Goods
2012-13
2013-14
2014-15
2015-16
2016-17
385070
529173
638348
804318
891453
684195
848708
989914
1187255
1299578
1069265
517903
1377881
481066
1628261
566460
1991573
690155
2191031
753819
50,987
170,245
406,816
557,837
777,619
1638154
2029192
2601538
3239564
3722469
385070
529173
638348
804318
891453
120473
136823
160003
201904
219006
Total Current
Liabilities (B)
505542.81
665995.63
798350.67
Working
Capital (A-B)
1132611
1363197
1803187
Sundry
Debtors
Cash & Bank
Balance
Total Current
Assets (A)
CURRENT
LIABILITIES
Sundry
Creditors for
Goods
Sundry
Creditors for
Expenses
1006221.93 1110458.80
2233343
2612010
107

CHAPTER-8
FINANCIAL
108

FEASIBILITYII
COST SHEET
Particulars
2012-13
2013-14
2014-15
2015-16
2016-17
385070
529173
638348
804318
4620842
6350075
7660170
9651814
10697430
184834
254003
306407
386073
427897
46208
63501
76602
96518
106974
231042
317504
383009
482591
534872
385070
529173
638348
804318
891453
Consumption of
Raw Material
Direct Expenses
Direct Labour
4235771
6205972
7550995
9485844
10610295
240000
240000
348000
360600
378630
Prime Cost
Factory
4706813
6763475
8282004
10329034
11523797
Opening Stock
of Raw
Material
Purchase of
Raw Material
Expenses
related to
Purchase:Carriage
inward &
Transportation
- 4%
Other Charges1%
Total Expenses
Less:
Closing stock
of Raw
Material
109

Overhead
Salary to
Supervisor
Salary to
Technician
120000
120000
126000
252300
258915
120000
120000
126000
252300
258915
24000
60000
24000
60000
49200
63000
50460
66150
52983
69460
5000
8000
12000
15000
18000
5600
484000
19025
6300
561840
21878
7700
831165
25154
8400
1025268
28976
9100
1279672
33120
41333
285375
35208
242569
29995
206183
25553
175256
21770
148968
Total Factory
Overheads
1164333
1199795
1476397
1899663
2150903
Total Factory
Cost
5871146
7963270
9758401
12228697
13674700
Cost of
Production
5871146
7963270
9758401
12228697
13674700
1320000
1320000
1320000
1320000
1320000
240000
240000
252000
264600
277830
72000
72000
75600
79300
83350
Salary to Peon
Salary to
Sweeper
Research
Outsourcing
cost
Bonus
Power & Fuel
Repairs &
Maintenance
Insurance
Depreciation
on Plant &
Machinery
Add:
Office &
Administrative
Expense
Interest on
Fixed Capital
of Partners
Salary to
manager
Salary to
accountant
110

10490
9441
8497
7643
6878
75000
67500
60750
54675
49208
576240
460992
345744
230496
115248
6420
7009
9640
10315
11037
1580
1706
1900
2024
2124
18920
21654
22758
23587
25125
6541
5000
7000
2339191
6672
6000
8250
2221224
6805
7500
9370
2120564
6941
8500
10280
2018361
7080
11000
11360
1920240
Cost of
Production of
Finished Goods
8210337
10184494
11878965
14247058
15594940
Add: Opening
Stock Of
Finished Goods
Less: Closing
Stock of
Finished Goods
684195
848708
989914
1187255
684195
848708
989914
1187255
1299578
7526143
10019981
11737759
14049717
15482616
197432
227760
279195
337338
375724
56409
65073
79770
96382
107350
Depreciation
on Furniture &
Fixtures
Depreciation
on Building
Interest on
Loan (Secured)
Stationery &
Printing
Computer
Expenses
Electricity(
Shop
Proportion)
Telephone
Audit Fees
Misc. Expenses
Total Office &
Administrative
Expense
Cost of
Production of
goods Sold
Add:
Selling &
Distribution
Expenses
Packing
Expenses-2.1%
of sales
Carriage
111

Outward
Cart Rent &
Misc. Expenses
Advertisement
Salary to Sales
& Shop
Executives
Salary of Cart
Workers
240000
300000
300000
504000
504000
238200
300000
258500
300000
232650
315000
209385
330750
188447
347290
192000
300000
300000
462000
462000
Total Selling &

Distribution
Expenses
1224041
1451333
1506615
1939855
1984811
Total Cost
8750184
11471314
13244374
15989572
17467427
Profit/(Loss)
-348654
74276
350666
574138
624223
Sales
8401530
11545590
13595040
16563710
18091650
PRODUCT WISE COST SHEET

COST SHEET FOR 2012-13
Particulars
Opening Stock of Raw
Material
Purchase of Raw
Material
Expenses related to
Purchase:Carriage inward &
Transportation- 4%
Other Charges-1%
Total Expenses
Less:
Closing stock of Raw
Material
Cup
Family Pack
Total
2772505
1848337
4620842
110900
73933
184834
27725
138625
18483
92417
46208
231042
231042
154028
385070
112

Consumption of Raw
Material
Direct Expenses
Direct Labour
2541463
1694309
4235771
144000
96000
240000
Prime Cost
2824088
1882725
4706813
72000
72000
48000
48000
120000
120000
14400
36000
3000
9600
24000
2000
24000
60000
5000
3360
290400
11415
24800
171225
2240
193600
7610
16533
114150
5600
484000
19025
41333
285375
Total Factory Overheads
698600
465733
1164333
Total Factory Cost
3522688
2348459
5871146
Cost of Production
3522688
2348459
5871146
792000
528000
1320000
144000
43200
6294
96000
28800
4196
240000
72000
10490
Factory Overhead
Salary to Supervisor
Salary to Technician
Salary to Peon
Salary to Sweeper
Research Outsourcing
cost
Bonus
Power & Fuel
Repairs & Maintenance
Insurance
Depreciation on Plant &
Machinery
Add:
Office & Administrative
Expense
Interest on Fixed
Capital of Partners
Salary to manager
Salary to accountant
Depreciation on
Furniture & Fixtures
113

Depreciation on
Building
Interest on Loan
(Secured)
Stationery & Printing
Computer Expenses
Electricity( Shop
Proportion)
Telephone
Audit Fees
Misc. Expenses
Total Office &
Administrative Expense
Cost of Production of
Finished Goods
Add: Opening Stock Of
Finished Goods
Less: Closing Stock of
Finished Goods
Cost of Production of
goods Sold
Add:
Selling & Distribution
Expenses
Packing Expenses-2.1%
of sales
Carriage Outward
Cart Rent & Misc.
Expenses
Advertisement
Salary to Sales & Shop
Executives
Salary of Cart Workers
Total Selling &
45000
30000
75000
345744
230496
576240
3852
948
11352
2568
632
7568
6420
1580
18920
3925
3000
4200
1403515
2616
2000
2800
935676
6541
5000
7000
2339191
4926202
3284135
8210337
0
410517
273678
684195
4515686
3010457
7526143
118459
78973
197432
33845
144000
22564
96000
56409
240000
142920
180000
95280
120000
238200
300000
115200
76800
192000
734425
489616
1224041
114

Distribution Expenses
Total Cost
5250110
3500073
8750184
Profit/(Loss)
Sales
-209192
5040918
-139461
3360612
-348654
8401530
115


Particulars
Cup
Family Pack
Total
Opening Stock of Raw Material
231042
154028
385070
Purchase of Raw Material
3810045
2540030
6350075
Carriage inward & Transportation- 4%
152402
101601
254003
Other Charges-1%
38100
25400
63501
Total Expenses
190502
127001
317504
Closing stock of Raw Material
317504
211669
529173
Consumption of Raw Material
3723583
2482389
6205972
Direct Labour
144000
96000
240000
Prime Cost
4058085
2705390
6763475
72000
48000
120000
72000
48000
120000
Salary to Peon
14400
9600
24000
Salary to Sweeper
36000
24000
60000
Research Outsourcing cost
4800
3200
8000
Bonus
3780
2520
6300
Power & Fuel
337104
224736
561840
13127
8751
21878
Insurance
21125
14083
35208
Expenses related to Purchase:-
Less:
Direct Expenses
Factory Overhead
116

145541
97028
242569
719877
479918
1199795
Total Factory Cost
4777962
3185308
7963270
Cost of Production
4777962
3185308
7963270
Interest on Fixed Capital of Partners
792000
528000
1320000
Salary to manager
144000
96000
240000
43200
28800
72000
Depreciation on Furniture & Fixtures
5665
3776
9441
Depreciation on Building
40500
27000
67500
Interest on Loan (Secured)
276595
184397
460992
4205
2804
7009
Computer Expenses
1024
682
1706
Electricity( Shop Proportion)
12992
8662
21654
Telephone
4003
2669
6672
Audit Fees
3600
2400
6000
Misc. Expenses
4950
3300
8250
Total Office & Administrative Expense
1332734
888490
2221224
Cost of Production of Finished Goods
6110697
4073798
10184494
Add: Opening Stock Of Finished Goods
410517
273678
684195
Less: Closing Stock of Finished Goods
509225
339483
848708
Depreciation on Plant & Machinery
Add:
Office & Administrative Expense
117

Cost of Production of goods Sold
6011989
4007993
10019981
Packing Expenses-2.1% of sales
136656
91104
227760
Carriage Outward
39044
26029
65073
Cart Rent & Misc. Expenses
180000
120000
300000
Advertisement
155100
103400
258500
Salary to Sales & Shop Executives
180000
120000
300000
180000
120000
300000
Total Selling & Distribution Expenses
870800
580533
1451333
Total Cost
6882789
4588526
11471314
Profit/(Loss)
44565
29710
74276
Sales
6927354
4618236
11545590
Add:
Selling & Distribution Expenses
118


Particulars
Cup
Family Pack
Total
211669
3064068
529173
7660170
122563
30641
153203
306407
76602
383009
383009
255339
638348

Direct Expenses
Direct Labour
4530597
3020398
7550995
208800
139200
348000
Prime Cost
4969202
3312802
8282004
Factory Overhead
75600
75600
50400
50400
126000
126000
Salary to Peon
Salary to Sweeper
Bonus
Power & Fuel
Insurance
29520
37800
7200
4620
498699
15092
17997
123710
19680
25200
4800
3080
332466
10062
11998
82473
49200
63000
12000
7700
831165
25154
29995
206183
885838
590559
1476397
Total Factory Cost
5855041
3903360
9758401
Cost of Production
5855041
3903360
9758401
317504
4596102
Expenses related to Purchase:Carriage inward & Transportation- 4% 183844
45961
Other Charges-1%
Total Expenses
229805
Less:
119

Add:
Salary to manager
Computer Expenses
Telephone
Audit Fees
Misc. Expenses
792000
151200
45360
5098
36450
207446
5784
1140
13655
4083
4500
5622
1272338
528000
100800
30240
3399
24300
138298
3856
760
9103
2722
3000
3748
848226
1320000
252000
75600
8497
60750
345744
9640
1900
22758
6805
7500
9370
2120564
7127379
4751586
11878965

509225
593948
339483
395965
848708
989914
7042655
4695104
11737759
Add:
Carriage Outward
Advertisement
167517
47862
180000
139590
189000
180000
111678
31908
120000
93060
126000
120000
279195
79770
300000
232650
315000
300000
903969
602646
1506615
Total Cost
7946624
5297750
13244374
Profit/(Loss)
210400
140266
350666
Sales
8157024
5438016
13595040
120


Particulars
Cup
Family
Pack
Total

Expenses related to Purchase:Carriage inward & Transportation4%
Other Charges-1%
Total Expenses
383009
5791088
255339
3860726
638348
9651814
231644
154429
386073
57911
289554
38607
193036
96518
482591
482591
321727
804318

Direct Expenses
Direct Labour
5691506
3794337
9485844
216360
144240
360600
Prime Cost
6197421
4131614
10329034
Factory Overhead
151380
151380
100920
100920
252300
252300
Salary to Peon
Salary to Sweeper
Bonus
Power & Fuel
Insurance
30276
39690
9000
5040
615161
17386
15332
105154
20184
26460
6000
3360
410107
11590
10221
70102
50460
66150
15000
8400
1025268
28976
25553
175256
1139798
759865
1899663
Total Factory Cost
7337218
4891479
12228697
Cost of Production
7337218
4891479
12228697
Less:
Add:
121


Salary to manager
Computer Expenses
Telephone
Audit Fees
Misc. Expenses
792000
158760
47580
4586
32805
138298
6189
1214
14152
4165
5100
6168
1211017
528000
105840
31720
3057
21870
92198
4126
810
9435
2776
3400
4112
807344
1320000
264600
79300
7643
54675
230496
10315
2024
23587
6941
8500
10280
2018361
8548235
5698823
14247058

593948
712353
395965
474902
989914
1187255
8429830
5619887
14049717
Add:
Carriage Outward
Advertisement
202403
57829
302400
125631
198450
277200
134935
38553
201600
83754
132300
184800
337338
96382
504000
209385
330750
462000
1163913
775942
1939855
Total Cost
9593743
6395829
15989572
Profit/(Loss)
344483
229655
574138
Sales
9938226
6625484
16563710
122


"
Cup
Family
Pack
Total

Expenses related to Purchase:-
482591
6418458
321727
4278972
804318
10697430
Carriage inward & Transportation- 4%
Other Charges-1%
Total Expenses
256738
64185
320923
171159
42790
213949
427897
106974
534872
Less:
534872
356581
891453

Direct Expenses
Direct Labour
6366177
4244118
10610295
227178
151452
378630
Prime Cost
6914278
4609519
11523797
Factory Overhead
155349
155349
103566
103566
258915
258915
Salary to Peon
Salary to Sweeper
Bonus
Power & Fuel
Insurance
31790
41676
10800
5460
767803
19872
13062
89381
21193
27784
7200
3640
511869
13248
8708
59587
52983
69460
18000
9100
1279672
33120
21770
148968
1290542
860361
2150903
Total Factory Cost
8204820
5469880
13674700
Cost of Production
8204820
5469880
13674700
Add:
123


Salary to manager
Depreciation on Furniture &
Fixtures
Computer Expenses
Telephone
Audit Fees
Misc. Expenses
792000
166698
50010
4127
528000
111132
33340
2751
1320000
277830
83350
6878
29525
69149
6622
1274
15075
4248
6600
6816
1152144
19683
46099
4415
850
10050
2832
4400
4544
768096
49208
115248
11037
2124
25125
7080
11000
11360
1920240
9356964
6237976
15594940
Add: Opening Stock Of Finished

Goods
Less: Closing Stock of Finished
Goods
712353
474902
1187255
779747
519831
1299578

Add:
Carriage Outward
Advertisement
9289570
6193047
15482616
225434
64410
302400
113068
208374
277200
150290
42940
201600
75379
138916
184800
375724
107350
504000
188447
347290
462000
1190887
793924
1984811
Total Cost
10480456
6986971
17467427
Profit/(Loss)
374534
249689
624223
Sales
10854990
7236660
18091650
124

PROFIT & LOSS ACCOUNT

Particulars
2012-13
2013-14
2014-15
2015-16
2016-17
Sales
8401530
11545590
13595040
16563710
1809165
0
Closing Stock
1069265
1377881
1628261
1991573
2191031
Total
9470795
12923471
15223301
18555283
2028268
1
Opening Stock
Purchase of Raw
1069265
1377881
1628261
1991573
4620842
6350075
7660170
9651814
1069743
Material
0
184834
254003
306407
386073
427897
Other Charges
46208
63501
76602
96518
106974
Salary & Wages
1368000
1476000
1654800
2118460
2189373
5600
6300
7700
8400
9100
Power & Fuel
484000
561840
831165
1025268
1279672
Repairs &
19025
21878
25154
28976
33120
Depreciation
370865
319510
275430
237574
205054
Interest on Secured
576240
460992
345744
230496
115248
6420
7009
9640
10315
11037
Carriage Inward &

Other
Transportation
Charges
Bonus
Maintenance
Loan
Stationary &
Printing
125

Computer Expense
1580
1706
1900
2024
2124
Telephone
6541
6672
6805
6941
7080
Audit Fees
5000
6000
7500
8500
11000
Misc. Expense
7000
8250
9370
10280
11360
Packing Expense
197432
227760
279195
337338
375724
Carriage Outward
56409
65073
79770
96382
107350
Advertisement
238200
258500
232650
209385
188447
Interest on Capital
1320000
1320000
1320000
1320000
1320000
5000
8000
12000
15000
18000
Insurance
41333
35208
29995
25553
21770
Electricity (shop)
18920
21654
22758
23587
25125
Cart Rent & Misc.
240000
300000
300000
504000
504000
Profit Before Tax
-348654
74276
350666
574138
624223
Total
9470795
12923471
15223301
18555283
2028268
Research
Outsourcing Cost
Expenses
Tax Provision @
22951
108356
177409
192885
-348654
51324
242310
396729
431338
30.9% in case of
Profit
Profit After Tax
126

BALANCE SHEET
Particulars
Sche
dule
No.
2012-13
2013-14
2014-15
2015-16
2016-17
11000000
11000000
11000000
11000000
11000000
476346
1187671
2089981
3036710
4018048
Secured Loan (
BOB @14%)
3292800
2469600
1646400
823200
Sources of Fund
14769146
14657271
14736381
14859910
15018048
13636535
13317025
13041550
12803976
12598923
1069265
1377881
1628261
1991573
2191031
Sundry Debtors
517903
481066
566460
690155
753819
Cash & Bank

Balance
Total Current
Assets
50987
170245
406816
557837
777619
1638154
2029192
2601538
3239564
3722469
Sundry Creditors
for Goods
385070
529173
638348
804318
891453
Sundry Creditors
for Expenses
120473
136823
160003
201904
219006
Sources of Fund
Partners capital
A/c
Partners Current
A/c
Loan & Fund
Application of
Funds
Fixed Assets:WDV at the end
of year
Current Assets:Inventories:
Less:
Current Liabilities
& Provisions:Current Liabilities
Provision
127

0
22951
108356
177409
192885
Total Current
Liabilities &
Provisions:-
505543
688947
906706
1183630
1303344
Net Current Assets
1132611
1340246
1694831
2055934
2419125
Application of
Funds
14769146
14657271
14736381
14859910
15018048
Income Tax
Payable (30.9%)
128

SCHEDULES FORMING PART OF BALANCESHEET

Particulars
2012-13
2013-14
2014-15
2015-16
2016-17
11000000
11000000
11000000
11000000
11000000
476346
1187671
2089981
3036710
-348654
51324
242310
396729
431338
1320000
1320000
1320000
1320000
1320000
Less: Withdrawal
495000
660000
660000
770000
770000
Balance at the end of the
476346
1187671
2089981
3036710
4018048
11250000
11250000
11250000
11250000
11250000
Op. WDV
1902500
1617125
1374556
1168373
993117
Less: Current year
285375
242569
206183
175256
148968
1617125
1374556
1168373
993117
844149
104900.00
94410
84969
76427
68784
10490
9441
8497
7643
6878
94410
84969
76427
68784
61906
Schedule A
Partners capital A/c

Partners Current A/c
Opening Balance
Add: Profit during the
year
Add: Interest on
capital
year
Schedule B
Fixed Assets
Land
Plant & Machinery
Depre
Cl. WDV
Furniture
Op. WDV
Less: Current year
Depre
Cl. WDV
129

Building
750000.00
675000
607500
546750
492075
75000
67500
60750
54675
49208
675000
607500
546750
492075
442868
13636535
13317025
13041550
12803976
12598923
i) Raw Material
385070
529173
638348
804318
891453
iii) Finished Goods
684195
848708
989914
1187255
1299578
Total Inventories
1069265
1377881
1628261
1991573
2191031
Op. WDV
Less: Current year
Depre
Cl. WDV
Net Fixed Assets
Schedule C
Closing stock of
Inventories:
130

CASH FLOW STATEMENT

PARTICULARS
2012-13
2013-14
2014-15
2015-16
2016-17
NET PROFIT AFTER

TAXATION (PAT)
-348654
51324
242310
396729
431338
INTERESTON LOAN
576240
460992
345744
230496
115248
TAX PROVISION
22951
108356
177409
192885
DEPRECIATION
370865
319510
275430
237574
205054
CHANGES IN
WORKING CAPITAL
-1162311
230586
439990
430156
378667
TAX PAID
NET CASH FLOW
FROM OPERATING
ACTIVITIES
-22951
-108356
-563860
1085363
1388879
1364008
-177409
1145783
-14007400
-14007400
PARTNER'S CURRENT
ACCOUNT
476346
711325
902310
946729
981338
PARTNER'SFIXED
CAPITAL
11000000
TERM & OTHER

LOAN TAKEN
4140011
Repayment of loan from

relatives
-24011
REPAYMENT OF
TERM LOAN
-393859
-1216438
-1708874
-1929220
-1792091
INTEREST ON LOAN
-576240
-460992
-345744
-230496
-115248
NET CASH FLOW

FROM FINANCIAL
14622247
-966105
-1152308
-1212987
-926001
CASH FLOW FROM

OPERATING
ACTIVITIES
CASH FLOW FROM

INVESTMENT
ACTIVITIES
PURCHASE OF
ASSETS
NET CASH FLOW
FROM INVESTMENT
ACTIVITIES
CASH FLOW FROM
FINANCIAL
ACTIVITIES
131

ACTIVITIES
TOTAL
50987
119258
236571
151021
219782
ADD : OPENING
BALANCE
50987
170245
406816
557837
CLOSING BALANCE
50987
170245
406816
557837
777619
PARTICULARS
2012-13
2013-14
2014-15
2015-16
2016-17
NET PROFIT AFTER

TAXATION (PAT)
-348654
51324
242310
396729
431338
INTERESTON LOAN
576240
460992
345744
230496
115248
TAX PROVISION
22951
108356
177409
192885
DEPRECIATION
370865
319510
275430
237574
205054
CHANGES IN
WORKING CAPITAL
-1162311
230586
439990
430156
378667
TAX PAID
NET CASH FLOW
FROM OPERATING
ACTIVITIES
-22951
-108356
-563860
1085363
1388879
1364008
-177409
1145783
PURCHASE OF
ASSETS
-14007400
NET CASH FLOW

FROM INVESTMENT
ACTIVITIES
-14007400
TOTAL
50987
119258
236571
151021
219782
ADD : OPENING
BALANCE
50987
170245
406816
557837
CLOSING BALANCE
50987
170245
406816
557837
777619
CASH FLOW FROM

OPERATING
ACTIVITIES
CASH FLOW FROM

INVESTMENT
ACTIVITIES
132

CAPITAL BUDGETING AND INVESTMENT DECISIONS

PVCO
0
Year
Land & Building
Plant & Machinery
Furniture
Working
Capital/additional
working capital
yearly outflows
12000000
1902500
104900
1132611
230585
439990
430156
378668
15140011
230585
439990
430156
378668
0.8929
0.7972
0.7118
0.6355
0.5674
PVCO
15140011
205880
350760
306185
240643
total PVCO
16243479
PVF @ 12%
PVCI
Year
EBT
-348654
74276
350666
574138
624223
370865
319510
275430
237574
205054
825000
660000
660000
550000
550000
NIL
Less : carry forward

of Losses
ADD: DEPRE
&Amortisation
Add: Non Cash Exps

Cash Inflows before
Tax
847211
1053786
1286096
1361712
1379277
less:Tax
22951
108356
177409
192885
After Tax Cash Inflows
ADD: Tax Saving in

Depre &Amortisation
847211
0
1030834
98729
1177740
85108
1184303
73410
1186392
63362
Fixed Assets Released

(other than Land)
1348923
Expected Value of
Land
15000000
Working Capital
Investment Released
2612010
Net Cash Inflows
847211
1129563
1262848
1257714
20210686
133

PVF @ 12%
0.8929
0.7972
0.7118
0.6355
0.5674
PVCI
756439
900488
898895
799277
11467543
TOTAL PVCI
14822642
NPV In 5 Years At Cost

of Capital 12%
PVCI
14822642
Less : PVCO
of Capital 12%
16243479
-1420837
PVF @ 10%
0.9090
0.8264
0.7513
0.6830
0.6209
PVCI
770115
933471
948778
859018
12548815
209602
363608
323176
258630
847211
1976774
3239622
4497336
24708022
TOTAL PVCI
16060197
PVCO
15140011
TOTAL PVCO
16295027
-234830

of Capital 10%
DIFFRENCE OF NPV
DIFFRENCE OF
RATE
-1186007
2.00
-2.3960
IRR
9.6040
CUMMULATIVE
CASH FLOW
TOTAL
CASHOUTFLOW
PAYBACK PERIOD
16619410
4.60
YEARS
134

Note : As the all the machines used in the project are having useful life of 10
years and the business is expected to run its operations smoothly, it is not
feasible to compute NPV for 5 years. However we have endeavored our best
efforts to project the same for 5 years which comes to negative 14 lacs approx
and thus other methods of capital budgeting like IRR and Pay Back Period
will also be effective for 10 years and not feasible for 5 years. However it is
pertinent to note that for 10 years, project will definitely have positive cash
inflows.
135

BREAK EVEN ANALYSIS

Particulars
2012-13
Sales
8401530
v.c.
DIRECT LABOUR
240000
CONSUMPTION of Raw Material
4235771
Carriage Inward & Other Transportation Charges
184834
Other Charges
46208
Salary & Wages
1368000
5600
Bonus
Power & Fuel
484000
19025
Stationary & Printing
6420
Computer Expense
1580
Telephone
6541
Audit Fees
5000
Misc. Expense
7000
Packing Expense
197432
Carriage Outward
56409
Advertisement
238200
Research Outsourcing Cost
5000
Insurance
41333
Electricity (shop)
18920
240000
TOTAL OF V.C.
7407273
CONTRIBUTION
994257
F.C.
4284890
136

P/V Ratio = contribution/sales * 100

= 994257/8401530* 100
= 11.83%
Break Even Sales = Fixed Cost/ P/V Ratio

= 4284890 / 11.83
= 362205
137

RATIO ANALYSIS
LIQUIDITY RATIOS
1)
2)
Current Ratio
Year
Ratio
3.24
2.95
2.87
2.74
2.86
Quick Ratio= Current Assets- Stock

Current Liabilities-BOD
Year
Ratio
1.13
0.95
1.07
1.05
1.18
138

CAPITAL STRUCTURE/LEVERAGE RATIO
1) Equity Ratio:
2)
3)
Year
Ratio
77.70
83.15
88.83
94.46
100.00
Year
Ratio
22.30
16.85
11.17
5.54
Debt Ratio:
Debt to Equity Ratio

Year
Ratio
28.69
20.26
12.58
5.86
139

ACTIVITY RATIO
1)
2)
3)
Capital Turnover Ratio:

Year
Ratio
56.89
78.77
92.25
111.47
120.47
Fixed Assets Turnover Ratio

Year
Ratio
61.61
86.70
104.24
129.36
143.60
Working Capital/Turnover Ratio

Year
Ratio
7.42
8.47
7.54
7.42
6.93
140

TURNOVER RATIO
1)
2)
3)
Inventory Turnover Ratio

Year
Ratio
22.00
13.07
12.77
12.91
12.45
Debtors Turnover Ratio:

Year
Ratio
8.11
12.00
12.00
12.00
12.00
Creditors Turnover Ratio:

Year
Ratio
12.00
12.00
12.00
12.00
12.00
141

PROFITABILITY RATIO
Based on Sales
Net Profit Ratio:

Year
Ratio
-4.15
0.44
1.78
2.40
2.38
Based on Assets/Investment
1)
Return on Capital Employed
Year
Ratio
-2.36
0.35
1.64
2.67
2.87
142

2)
Fixed Assets to Partners Capital Ratio
Year
Ratio
1.19
1.09
1.00
0.91
0.84
143

Conclusion
We would like to conclude our project with sense 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.
144

Webography
www.yahoo.com
www.gmail.com
www.google.com
www.bing.com
www.free dictionary.com
145

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What is Feasibility Study?

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how it satisfies the requirements identified in the analysis phase of system

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Steps of Feasibility Report

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Near Keshavbagh Soc.,

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The first frozen dessert is credited to Emperor Nero of Rome. It was a

HISTORY OF ICE-CREAM INDUSTRY

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8) Vaidehi Sunilbhai Raval

Aakash Ashokkumar Shah

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Thank you for choosing BANK OF BARODA. We are pleased to

Loan amount sanctioned:

Interest rate type:

Mortgage loan reference rate:

Number of equated monthly installments (Emi): 60

25, judges bungalow, Ahmedabad 380006

Fees on part pre-payment :

25% there off in any financial year.

Fees on full & final pre-payment:

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are included into

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the increase in the investment. Technological inventories are introduced for