A

PROJECT REPORT Of
Cement

Prepared by
Solanki Denish Chetanbhai

College name
Shree H.N Shukla group of college of it and management

CLASS
BBA SEM-4

Project Guide Name:

DR. SHRADDHA KALYANI

Affiliated to:-
Saurashtra university – Rajkot

Academic year:-
2022-23

1
 A
PROJECT REPORT Of
Cement

Prepared by
Solanki Denish Chetanbhai

College name
Shree H.N Shukla group of college of it and management

CLASS
BBA SEM-4

Project Guide Name:

DR. SHRADDHA KALYANI

Affiliated to:-
Saurashtra University – Rajkot

Academic year:-
2022-23

2
3
 DECLARATION

I, the under signed Mr. Denish Solanki, a student of BBA Sem-4 hereby declare
that the project work presented in this project is my own work and has been
carried out under the guidance of DR. SHRADDHA KALYANI to Shree H.N
Shukla group of college of it and management.

Denish Solanki

4
 ACKNOWLEDGEMENT

I Denish Solanki I am very happy today on completion of my product

project report on “Cement Company”

It is an enjoying occasion for me to remember those helpful people who

guide me and supported me in my journey from beginning to
destination.

This Product Project Report is made by me and I am very thankful to

our project guide DR. SHRADDHA KALYANI for their help.

It is great experience for me to prepare this project report. I feel

happiness that I presented this report. I thanked all those person who
are involved in the making of projects.

5
 PREFACE

The objective of practical studies is to develop among the student a feel

about industrial environment & business.

Student through the visit get a clear idea of how the theories and
principal their study in class is implemented in business units.

Through this project it is easy to develop a practical base in the student.

SIGNATURE
(Denish Solanki)

6
General Information

7
 INTRODUCTION
In the modern business world new products are launched very fast but
products which cannot be wiped out from the market such product have
become the part of consumers and people cannot live without such
product.
In Country like India, cement has been used since ages. There are lots
of cities and villages where modernization came day by day. Since
India is a developing country so every old product gets importance as it
slowly gets upgraded day by day.
One such product is cement. Cement is used in making House,
Buildings, factories etc. so cement is one of them. Cement is one of the
world’s most popular usages. Some claim it is the most widely uses in
the world.

8
 PRODUCT SELECTION
For any idea or business to be selected, the product selection should be
appropriate.

 Knowledge of the product and business

In India, Cement have been on a constant demand. In India there are
very widely requirement to the construction for making house. If we
work hard, we can surely earn a lot of money from this industry ad
even take it to next level.

 Product's Market Position

It is the new product in Indian market so it has very good demand in

market. It can develop day by day.

9
 NAME OF THE UNIT

The name of the unit should be unique and easy to pronounce and also
relevant to the product which the company produces. The name of our
industry will be “D.C CEMENT PVT LTD.”

10
 COMPANY INFORMATION

Name of the unit D.C cement pvt. Ltd.

Product of the
Cement
company
Rajkot Industiral park, near targhadiya
village,
Address of unit
Rajkot-360003,
Gujrat
Email Adress [Link]
Scale of
large scale unit
organisation

Total build up Area 4 acquares

owners of the Mr. Denish solanki

company Mr. Jayraj solanki
Brand Name D.C cement
factory location Rajkot, Gujrat.

Bankers State Bank of India

11
 Partners Background
1. Name Denish Solanki
Address Gadhiyanagar-3, near kanaknagar
garden, Santkabir road, `
Rajkot.-360003
Educational Qualification B.B.A
Age 22 Years
Financial Contribution 50 %
Share Of Profit 50 %
Work & Responsibility Shall handle Accounting, Financial
and Personnel Department.

2. Name Jayraj Solanki

Address “SATYAJIT”
26, Prahlad Plot,
Rajkot-360001
Educational Qualification BBA with Marketing
Age 29 Years
Financial Contribution 50 %
Share Of Profit 50 %
Work & Responsibility Shall handle Production,
Quality control & Marketing
Department.

12
 PRODUCT INTRODUCTION AND MARKET ANALYSIS

India is one of the fastest growing economies of the world. With the
new motto of “Aatmanirbhar Bharat”, government provides help to
various entrepreneurs and businessmen in order to grow their business.

Cement are very useful in the construction side. The Cement are also
used in the making house, factory and etc… and it can be very useful.
The manufacturing of cement in India is not there it only available in
US. The market is growing day by day and if necessary efforts are put
in the business, cement can surely be a good product for the users as
well as producers.

13
 PROPOSED LOCATION AND JUSTIFICATION

Our manufacturing will be done in the Rajkot industrial park located in

Targhdia, Rajkot. The area has got various industries nearby and fast
developing area. Transportation and communication services are easily
available in this area. Since the production of Cement can be done in
medium area and doesn't require much space, the place is planned to on
own land. The place itself will have the manufacturing as well as the
office.

14
 GOVERNMENT PROCEDURE

SR NO. Approval required

1 Incorporation of company
2 Registration / IEM / Industrial license
3 Allotment of land

4 Noc under Air pollution and Water control Acts

5 Approval for construction activity

6 Sanction of power
7 Use and storage of explosive
8 ISI certificate
9 Extraction of minerals
10 Quality making certificate
11 Weights and Measures

12 Code no. For import and export

13 Noc under Air pollution and Water control Acts

14 Noc for fire service

15
PRODUCTION DEPARTMENT

16
 Index

SR NO. TITLE PG NO.

1 Introduction 18

2 Machineries quotations 19
3 Raw material requirement 22
4 Production process 23
5 Plant Layout 28
6 Production Capacity 29

17
 Introduction

A production department is a group of functions within a business that

is responsible for the manufacture of goods. This can include just a few
specialized functions with all other work outsourced, or a fully
functioning department that converts raw materials, assembles
components into finished goods, and packages them.

The production department can be the largest organization within a

business. It may employ mechanics, machine setup specialists,
maintenance personnel, and machine operators.

Production department is the department which directly involves in

manufacturing products. The Production manager is responsible for
making sure that raw materials are provided and made into finished
goods.

18
 MACHINERIES

For any product to be produced in today’s world, it is next to

impossible without machines. Even to produce the tiniest of things,
machines are used. Our industry will use many machines for making
cement.

1. Cement Rotary Kiln

2. Shaft Kiln
3. Cement Vertical Mill
4. Cement Ball Mill
5. Cement Roller Press

 Cement Rotary Kiln

19
  Shaft kiln

 Cement vertical mill

20
  Cement Ball Mill

 Cement Roller press

21
 RAW MATERIAL
The first step is to producing cement those raw materials, mainly
limestone, Gypsum, flyash and other materials. After quarrying the
rock is crushed. This involves several stages. The first crushing reduces
the rock to a maximum size of about 6 inches. The rock then goes to
secondary crushers or hammer mills for reduction to about 3 inches or
smaller.

Raw mate
material
al requirement
Material % Uses cost (Rs/Ton)
Clinker 35 to 65 % 2600
Gypsum 4% 1250
Flyash 35% 350
Slag 55% 1500

+ + =
Clinker Gypsum Flyash PPC cement

From the given information, raw material can be uses with the given
rate and process on it.

22
 PRODUCTION PROCESS:-

Types of processes:-
There are mainly 3 types of processes to get the final product. These
processes are as follows...........

A. Wet process
B. Semi dry process
C. Dry process

[Link] process:-
This is the old process of manufacturing of cement. In
this process the raw material grinding with sufficient water, so that
mixture contains 30% to 40% of water. But it is not usable because it
use higher coal consumption 30% to 35% as compared to dry process.

B. Semi dry process:-

In this process the raw material are processed in dry
state and the grinding raw meal is neutralized by addition of 10% to
20% water, and it is final by heat consumption.

23
C. Dry process:-

This is the modern method of production. In the dry

process limestone and clay are fed into a grinding mill passing hot
air. The materials are heard dried thoroughly and then reduced to
fine powder known as raw meal.

The raw meal is mixed with a little water and formed into nodules in
nodulising fan. Their nodules are then fed into a moving grate through
which the hot gases from the rotary kiln are passed. They are dried in
vertically claimed.

The calcined nodules then fail into a short rotary klin of conventional
design where they are burnt to form clinker.

24
The process of manufacturing cement is as un
under.

1) Mining & crushing of limestone:

Limestone is the basic raw material to produce cement. It is
mainly obtain from the open cost mining. The limestone is hauled
through dumpers up to 70 to 75 mm size. The crushing of limestone is
done through hopper crushed material passed on the conveyor belt in
which addictive is added to the material.

25
 2) Crushing of Gypsum & Coal:
The second stage of cement manufacturing is to crush the
gypsum & coal by griddling machine.

3) Make a Clinker:
Clinker is a precondition to make cement. So to make
cement of clinker is needed. So, to make a clinker all crushed material
like limestone, gypsum & coal water with the help of elevator.

4) Storage of clinker:
After a making clinker is storage in a one place. It’s called
Silo. As per the requirements clinker is send at required place weighing
bin.

5) Drying of clinker:
After making a clinker, it dried in heating machine at 1200-
1400 degree Celsius temperature. Minimum 1 hour required for drying
the clinker.

26
 6) Storage of Dry clinker:
After the drying a clinker it stored in a one place. It’s called
silo. As per the requirements, clinker is send at required place through
conveyor Belt.

7) Crushing the clinker & Added the chemical:

Dried clinker is again crushed in the grinding cement mill.
And chemical is added as per the grad of cement. After adding the
chemicals, this all things are mixing in the raw mill. After the process
all this mixing material is transfer in to the ruler. Rulers exclude the
wastages & clean to the cement.

8) Packing:
Packing is the final step of cement manufacturing process.
Clean cement again stored in a silo and last as per the requirement it
come in weight box through conveyor belt. After this cement bag
which have capacity to include 50 kgs. Cement in it.

27
 PLANT LAYOUT

In this project there is also need to 4000 meter square land.

 All the machineries is setup with the line

28
 INSTALEED AND UTILIZED CAPACITY

D.C Cement’s Installed and utilized capacity given in following table…

UNIT PRODUCE & PERCENTEGE

CAPACITY UTILIZED (%)
INSTALLED 80 Ton Per days 100
UTILIZED 56 Ton Per day 70

29
Marketing Department

30
 Index

SR NO. TITLE PG NO.

1 Introduction 32

2 Marketing planning 33

3 Product strategies 34

4 Pricing strategies 35

5 Distribution strategies 37

6 Promotion strategies 38

31
 Introduction

A marketing department promotes your business and drives sales of its

products or services. It provides the necessary research to identify your
target customers and other audiences. Depending on the company's
hierarchical organization, a marketing director, manager or vice
president of marketing might be at the helm.

Marketing is the activity, set of institutions, and processes for creating,

communicating, delivering, and exchanging offerings that have value
for customers, clients, partners, and society at large.

32
 Marketing planning

A marketing strategy refers to a business's overall game plan for

reaching prospective consumers and turning them into customers of
their products. A marketing strategy contains company’s value and
proposition, key brand, data on target customer demographics, and other
high-level elements. A marketing strategy covers "the four P's" of
marketing product, price, place, and promotion

33
 PRODUCT PLANNING

To satisfy customer needs and wants product planning is essential.

Many product affect some factor like geographical factor, cultural
factor, social factor, demographical factor, psychological factor, and
many others.
Product planning is related following matters.........
1. Product mix
2. Packing
3. Labelling
4. Branding
5. After sales services
6. Organizing
7. Product research
The main product of company is cement and product planning of
D.C company is under......

 Port land pozoland cement (PPC)

 High strength ordinary port land cement (HSOPC)
 53 grade cement
 Special cement for railways etc...
In product planning the product, which is demand the most is paid
more attention. Here, the D.C cement company is also paid more
attention in producing the PPC cement. PPC cement is more required to
all over construction work and tiles working. Here this cement is
widely used in to construction work.
34
 PRICING STRATEGIES

Pricing is the main factor to satisfy the customer. Price is known by

different names like – fees, fare, rant, commission etc. The pricing
policy is directly or indirectly affects the fixed cost, variable cost,
Government policy etc.

A. Cost oriented pricing:

In this product the price is decided as per the cost of product and it is
also known as target pricing.
B. Demand oriented pricing
In this product the price is decided as per the consumer demand.

D.C Cement Company has many competitors in India and other country
also. So, they have set prices taking into consideration all of them.
Thus, the prices are always fluctuating it is also fluctuating by
government.

35
D.C Cement company looks upon following factors for determining
prices:-

1) Cost of production
2) Advertising
3) Distribution cost
4) Sales promotion cost.

D.C cement provides some motivation like gifts, discounts,

commissions etc. For increase the efficiency of the dealers, stockiest to
selling more.

36
 CHANNELS OF DISTRIBUTION

A channel of distribution refers to a process of distribution

goods and services to the consumers by producers. It is known as
distribution channel because there were made channel between
producers and consumer while the selling and buying process is doing
the market and it is as................

1. Zero level distribution

Producer --------- Consumer

2. One level distribution

Producer---------Retailer----------Consumer

3. Two level distribution

Producer------Wholesaler-----Retailer-------Consumer

4. Three level distribution

Producer----Agent----Wholesaler---Retailer---Consumer

In D.C Cement Company the main channel of distribution is three

level of distribution. In D.C Company agency is given to the MITCO
to performing marketing activity. They have their sales representatives
on Gujarat appointed by MITCO. It collects the order from the Gujarat
and provides them their stock by transport facility.

37
 PROMOTION STRATAGIES

Promotion means efforts for the increase of sale. There are

many way to promote the product like posters, advertise, in local
Newspaper or Magazines also.

After deciding the product and setting price for the same, the next stage
is decide to about how to plan promotion strategy to create awareness,
persuade, and convince consumer by highlighting powerful selling
point by using various promotional tools.
A promotion mix is an allocation of resource among four Primary
elements.

A. Advertising
B. Personal selling
C. Sales Promotion
D. Publicity

1. Advertising:-
Advertising being heavily used tool for communication and
promotion includes basic 5 elements i.e. motive for advertising, media
decision, advertising budget, messages designing, and measuring
advertising effectiveness.
Here the company is also gives the advertising into the many
social medias and newspaper.

38
 2. Personal selling:-
Personal selling activity is relevant in case of using zero
level channel company. Company may directly sell products to
consumers. Personal selling is quite effective tool for promotion and
gives the detailed information to the consumers needs.
Here, the salesman is directly gives the information to the
construction sides and many contractor.

3. Sales promotion:-
It is a very effective way to promote and increase sales. It is
unique type of way to grab the attention of the buyers. Company also
offering discounts, free gifts, coupon, sample, displays, etc.
Here the company is also provides the discount coupon and also
gives the free gifts to the big buyers.

4. Publicity:-
To create sound and credible image of the whole company,
publicity is developed. It is non-paid form of publicity in which news
regarding company is highlighting. It place key commercial messages
as news on radio, TV and non-paid form of company.

39
Human Resource Department

40
 Index

SR NO. TITLE PG NO.

1 Introduction 42

2 Human Resource Requirements 43

3 Recruitment and Selection 44

4 Training 46

5 Wages and Compensation 48

6 Employee Welfare 49

41
 Introduction

Definition:-

A Human Resource Management can be defining as “H.R.M” is

Managerial function which concurred with hiring, motivation,
directing, and maintaining the people in the organisation. – It is known
as Human Resource Management. Human Resource Management
(H.R.M) is also known as personal management. Without H.R.M a
company cannot achieve their goal easily. All the company has H.R.M
department.
It is managerial and top level function. It is try to develop employee
skill and better performance.

42
 Human Resource Requirement

Manpower Requirement
SR No. Description capacity
1 Mechanical foreman / plant Engineer 1 No.
2 Chief chemist cum sr. Process expert 1 No.
3 Assistant chemist 2 No.
4 Supervisor / Mechanical Engineer 3 No.
5 Electrical foreman / Engineer 1 No.
6 CCR Operator 3 No.
7 Skilled wokrer, Technician, Securtiy, Accountant 8 No.
8 Semi skilled worker including shift 10 No.
9 Unskilled worker including shift 10 No.
39 to 50
Grand Minimum Manpower:
No.

43
 RECRUITMENT & SELECTION
 Recruitment:-
Employees are the asset of the company. So it to get skilful
person for proper management of man, machine, money and material.
This process is held by personnel Department. The process of
recruitment gets started because of transfer, dismissal or promotion of
the employee. The person in charge gives advertisement through
various means of communications like newspaper, Television,
Magazine etc. The recruitment is may be on..........

1. At management and administration level.

2. At staff level.
3. At worker level.

44
  Selection process :-
Generally the following procedure is taken into
consideration while select the member.

1. Choose proper media for Advertisement.

2. Accept all the application

3. Select application on the basis of application.

4. Sending call latter.

5. Conduct personal interview.

6. Then selected employees are given an Appointment letter and

make induction in the organisation.

45
 Training

Mainly there are two types of training:-

 On-the-Job training
 Off-the-Job training

A. On-the-Job training
The most important types of training is on-the-job training.
In this training there is also given in actual work place. Here the
employees get experience of normal work environment. These methods
do not cost much and are less disruptive as employees are always on
the job. In this training there is no need to extra work space to provide
training. In this training quickly feedback is possible. It is a very simple
and easy to learn.
Here the employees get the knowledge of running machines
and equipment.

B. Off-the-Job training
In this type of training employees learn their job roles away
from the actual work floor. Simply, off the job training comprises of a
place specifically allotted for the training purpose that may be near to
the actual work place. Where the workers are required to learn the skill
and get well equipped with the tools and techniques that are to be use at
the actual work place. Here, the methods include lectures, conference,
seminars, case study, roles plays, business or management games, etc...
46
Wages and compensation

Wages and salary are most useful to give motivation to the

employee. Wage and salary means the monitory reward paid to the
employee on behalf of his work.
In D.C cement Company they pays salary to Employees and
wages to labours And other allowances are paid. The amount of wage
& salary paid depends on grades,

A Grade / Management category are......

Basic salary + house Rent Allowance + 10% provident fund +
Medical Allowance + Vehicle allowance + Bonus

OVERTIME PAYMENT:-
Overtime payment is admissible toward wage board works only.
The over time payment is made on the basis of overtime memo
received from the department level.
EXTRA DUTY INTIMATION:-
If in accident case worker may lose his efficiency of performing
the present job. In such cases company make transfer to the employees
and if he is not able to work at all units, the unit pays a reward to
employee. On the event of death of a workman the wages and other
dues shall be paid to the nominee as declared under the provident fund
Act. 1952.

47
 EMPLOYEES WELFARE

The personal management is tried to focus on employee and employer

to give best services. Thus it increases the satisfaction and the long run
income of the company. The D.C Cement Company is provides the best
services to their employee. The facilities provided by the organisation
to the employees is as under...

A. EDUCATIONAL FACILITIES :-
The D.C cement has its own English medium school situated in
Rajkot city. The fees are very normal so, that a common person can
able to provide their child a better education.
B. MEDICAL FACILITIES :-
The unit has its own medical centre established in Mavdi. When
any family member of employees or him is sick he can directly
visit to the nearby hospital and can go under medical treatment. In
case of any injury or accidents the company pays the full
expenditure, incurred for the treatment of worker. During his rest
period he would get the salary of those days.
C. LEAVE FACILITIES :-
The following are the leave facilities provided by the company to
the employees:-

 Festival Leave :-
All the workmen are granted National and social Festival
holidays.
48
  Sick Leave:-
The unit grants 12 days as a sick leave to the employees. He can
Takes leave for 12 days in one year for his sickness.

 Casual Leave :-
A workman may be granted Casual leave of absence with pay not
exceeding 7 days.

 Privilege leave:-
Privilege leave is the leave of workers only. The workers can get
a privilege leave if he works for continuous 209 days.

D. CANTEEN FACILITIES :-
The D.C cement Company also provides a good canteen, where
every worker can go and take refreshments and snacks at cheap rates
and hygienic than other stuffs available in the market.
E. TRANSPORT FACILITY :-
D.C cement Company has its own bus which transfer from Rajkot
city to the company. In workers bus they travel freely (no fare). There
is even one school bus facility provided too.
F. RECREATION AND SPORT FACILITY :-
In its residential colony the unit has build up a recreation and sports
club. The club is facilitated by outdoor & indoor games. The club
has a too.

G. LIBRARY FACILITY :-
The unit has its well developed library. This has many types of
newspapers and magazines available.
49
Finance Department

50
 Index

SR NO. TITLE PG NO.

1 Introduction 52

2 Fixed capital cost of a project 53

3 Total cost of a project 54 to 57

4 Working capital requirement 56

5 Financial Arrangement 57

6 Depreciation, Interest, Administrative expense 58 to 59

7 B.E.P statement 61
8 Profitability of a project 62

9 Trading A/c, P&L A/c, Balance sheet. 63 to 65

51
 INTRODUCTION
 It is very week body without blood can’t live wise any enterprise.
Industrial unit can’t run without finance so finance is the life
money of business enterprise because n this modern without
appropriate arrangement of finance management is the most
required fool.
 The efficient of producing and marketing operation is directly
influenced by manner in which the function of finance personal
finance functions assumes in important role in the business
system in D.C cement Company. It should be given equal
important as with production and marketing function in D.C
cement Company.

52
 Total fix assets of the company

 Fix Assets
A long term tangible prices of property that a firm owns and
uses in the production of its income and isn’t expected to be
consumed or converted into cash any sooner than at least one
year’s time.

FIXED ASSETS OF D.C CEMENT COMPANY

SR NO. FIXED ASSTES AMOUNT

1 Land 2,00,00,000
2 Building 50,00,000
3 Plant & Machinery 95,00,000
4 Other fix assets 20,00,000
5 Furniture 5,00,000
TOTAL FIXED ASSETS 3,70,00,000

Preliminary and Pre operative expense Rs. 3,50,000

53
 Raw Material Requirements

No Particulars Rate Per Day Per Month Per Annum

. Per
ton
Qty Amount Qty. Amount Qty. Amount
.
1. Clinker 2600 32 83,200 960 24,96,000 11,520 2,99,52,000
2. Gypsum 1250 15 18,750 450 5,62,500 5,400 67,50,000
3. Flyash 350 4 1400 120 42,000 1,440 5,04,000
4. slag 1500 18 27,000 540 8,10,000 6,480 97,20,000

TOTAL 1,30,350 39,10,500 4,69,26,000

Utilities

No. Particulars Qty. Rate Monthly Annually

1. Electricity 11,000KWH 10 1,10,000 13,20,000
2. Water 15,000 1,80,000
TOTAL 1,25,000 15,00,000

Man Power Requirements

TOP LEVEL
No. Designation No. Of Salary Total Monthly Yearly
Employees Salary Salary
1. Manager 5 20,000 1,00,000 12,00,000
2. Accountant 2 8,000 16,000 1,92,000
, expert
TOTAL 1,16,000 13,92,000
54
 MIDDLE LEVEL
No. Designation No. Of salary Total Yearly
Employees Monthly Salary
Salary
1. Clerk 3 10,000 30,000 3,60,000
2. Supervisor 5 12,000 60,000 7,20,000
TOTAL 90,000 10,80,000

LOWER LEVEL
No. Designation No. Of Total Yearly
Employees salary Monthly Salary
Salary
1. Skilled 11 7,000 77,000 9,24,000
2. Unskilled 10 5,000 50,000 6,00,000
TOTAL 1,27,000 15,24,000

LEVELS OF MANAGEMENT
Monthly Yearly Salary
No. Particulars
Salary
1. Top Level 1,16,000 13,92,000
2. Middle Level 90,000 10,80,000
3. Lower Level 1,27,000 15,24,000
TOTAL SALARY 3,33,000 39,96,000

55
 Other Contingent Expenses

No. Particulars Amount Per Amount Per

Month Year
1. Repairs & Maintenance 60,000 7,20,000
2. Legal Expenses 40,000 4,80,000
3. Miscellaneous Expenses 40,000 4,80,000
4. Printing Expense 8,000 72,000
5. Telephone Expense 20,500 2,46,000
6. Advertisement & Selling 60,000 7,20,000
Expenses
7. Postage & Stationary 7500 90,000
TOTAL 2,36,000 28,08,000

Total Working Capital

No. Particulars Amount Per Amount Per

Month Annum
1. Raw Material 39,10,500 4,69,26,000
2. Utility 1,25,000 15,00,000
3. Wages & 3,33,000 39,96,000
Salary
4. Contingent 2,36,000 28,08,000
Expenses
TOTAL 46,04,500 5,52,30,000

56
 Total Cost Of Project

No. Particulars Amount

1. Total Fixed Capital
3,70,00,000
2. Total Working Capital 46,04,500
TOTAL 4,16,04,500

Sources Of Fund

No. Particulars Percentage Amount

1. Owned Capital 60% 2,49,62,700
Mr. Denish Solanki (50%)
Mr. Jayraj solanki (50%)
2. Borrowed Capital 40% 1,66,41,800
TOTAL 4,16,04,500

Interest

No. Particulars Percentage Amount

1. Owned 6% 14,97,762
2. Borrowed Loan from SBI 11 % 18,30,598
TOTAL 33,28,360

57
 Depreciation

No. Particulars Value Rate 1st Year

1. Building 50,00,000 10 % 5,00,000
2. Plant & 95,00,000 12 % 11,40,000
Machinery
3. Computer 1,00,000 40 % 40,000
4. Furniture 5,00,000 15 % 75,000
5. Vehicle 20,00,000 15 % 3,00,000
TOTAL 20,59,000

Administrative expense

SR NO. Expenses Amount

1 Printing 13,000
2 Utilities 1,25,000
3 Building expenses 70,000
4 Advertising 2,50,000
5 Consultation 50,000
6 Medical expenses 70,000
7 Insurance cost 2,00,000
8 it service cost 12,000
Total 7,90,000

58
 Annual Cost Of Production

No. Particulars Amount

1. Raw Materials 4,69,26,000
2. Wages & Salary 39,96,000
3. Other Expenses 15,00,000
4. Utilities 1,25,000
5. Depreciation 20,59,000
6. Interest On Capital (Owned) 14,97,762
7. Interest On Capital (Borrowed) 18,30,598
TOTAL 5,79,34,360

Sales Forecast

Year Utilized Sales Selling Price Amount

Capacity (In ton) (Per ton)

1st 70 % 20,440 7000 14,30,80,000

59
 Cost Per Unit
1. Fixed Cost: -

No. Particulars Amount

1. Staff & Labour (60 %) 23,97,600
2. Other Contingent Expenses (60%) 16,84,800
3. Depreciation 20,59,000
4. Interest on Capital 33,28,360
5. Preliminary Expenses W/O 3,50,000
TOTAL 98,19,760

FCPU = Total Fixed Cost

Uts. Sold

= 98,19,760 = Rs. 480.42

20,440

2. Variable Cost:-

No. Particulars Amount

1. Raw Materials 4,69,26,000
2. Other Contingent Expenses (40%) 11,23,200
3. Utilities 15,00,000
4. Staff & Labour (40%) 15,98,400
TOTAL 5,11,47,600

VCPU = Total Variable Cost

Uts. Sold

= 5,11,47,600 =Rs. 2,502

20440

60
 Break Even Analyses

Particulars Amount (Uts.) Amount (Rs.)

Sales 7000 14,30,80,000
(Less) Variable Cost 2502 5,11,47,600
Contribution 4498 9,19,32,400
Fixed Cost 480.42 98,19,760

PV Ratio = Contribution X 100

Sales

= 9,19,32,400X 100 = 64.25 %

14,30,80,000

1. BEP (in Uts.) = Fixed Cost

Contribution per unit

= 98,19,760 = 2183 Uts.

4498

2. BEP (in Rs.) = Fixed Cost X 100

PV Ratio

= 98,19,760 X 100 = 1,52,83,673 Rs.

64.25

3. BEP (in %) = Fixed Cost X utilized capacity

Contribution

= 98,19,760 X 70 = 7.47%
9,19,32,400

61
 Profitability

Particulars Amount

Sales 14,30,80,000

Less:-
5,79,34,360
Cost Of Production

EBIT 8,51,45,460

Less:- 18,30,598

Interest on Bank Loan

EBT 8,33,15,042

Less:- 2,91,60,265

Tax @ 35%

NET PROFIT 5,41,54,777

62
 TRADING A/C OF D.C cement

PARTICULARS AMOUNT PARTICULARS AMOUNT

Purchase 4,69,26,000 Sales 14,30,80,000

Frieght & octroi 1,50,000 Closing stock 12,00,000
Wages 3,50,000
Factory lighting 13,20,000
Coal,gas and water 1,80,000
Carrige on purchases 3,50,000
Factory rent -
Import duty 1,50,000

To gross profit 9,33,04,000

14,42,80,000 14,42,80,000

63
 P&L A/C Of D.C cement

PARTICULARS AMOUNT PARTICULARS AMOUNT

To salary 39,96,000 Gross profit 9,33,40,000

To Depreciation
Building 5,00,000
Machineries 11,40,000
Computer 40,000
Furniture 75,000
Vehicle 3,00,000 20,59,000

To interest on capital
Owncapital 14,97,762
Borrowed capital 18,30,598 33,28,360

To Advertisement 2,50,000
To other expense 28,08,000

Net profit transferred to final

a/c 8,08,98,640

9,33,40,000 9,33,40,000

64
 Balancesheet OF D.C cement

LIABILITIES AMOUNT ASSESTS AMOUNT

Capital 2,49,62,700 Land 2,00,00,000
Add : I.O.C 14,97,762 Building 50,00,000
Add : Net Profit 8,08,98,640 10,73,59,102 -depn 5,00,000 45,00,000
Machineries 95,00,000
SBI Bank Loan 1,66,41,800 -depn 11,40,000 83,60,000
Furniture 5,00,000
-depn 75,000 4,25,000
Vehicle 20,00,000
-depn 3,00,000 17,00,000
Computer 1,00,000
-depn 40,000 60,000
[Link] 12,00,000
Cash on Hand 3,51,02,361
Bank On balance 5,26,53,541

12,40,00,902 12,40,00,902

65
 TRADING A/C OF D.C cement

PARTICULARS AMOUNT PARTICULARS AMOUNT

Purchase 5,02,26,000 Sales 16,70,20,000

Frieght & octroi 1,50,000 Closing stock 15,00,000
Wages 3,50,000
Factory lighting 15,00,000
Coal,gas and water 2,50,000
Carrige on purchases 3,70,000
Factory rent -
Import duty 5,00,000

To gross profit 11,51,74,000

16,85,20,000 16,85,20,000

66
 P&L A/C Of D.C cement

PARTICULARS AMOUNT PARTICULARS AMOUNT

To salary 47,90,000 Gross profit 11,51,74,000

To Depreciation
Building 5,00,000
Machineries 12,00,000
Computer 35,000
Furniture 1,00,000
Vehicle 3,70,000 22,05,000

To interest on capital
Owncapital 14,97,762
Borrowed capital 18,30,598 33,28,360

To Advertisement 5,75,000
To other expense 29,50,000

Net profit transferred to final

a/c 10,35,30,640

11,51,74,000 11,51,74,000

67
 Balancesheet OF D.C cement

LIABILITIES AMOUNT ASSESTS AMOUNT

Capital 2,49,62,700 Land
Add : I.O.C 14,97,762 Building 50,00,000
Add :Net Profit 10,35,30,640 12,99,91,102 -depn 5,00,000 45,00,000
Machineries 95,00,000
SBI Bank Loan 1,66,41,800 -depn 12,00,000 83,00,000
Furniture 5,00,000
-depn 1,00,000 4,00,000
Vehicle 20,00,000
-depn 3,70,000 16,30,000
Computer 1,00,000
-depn 35,000 65,000
[Link] 15,00,000
Cash on Hand 2,20,47,580.4
Bank On balance 8,81,90,321.6

14,66,32,902 14,66,32,902

68
 TRADING A/C OF D.C cement

PARTICULARS AMOUNT PARTICULARS AMOUNT

Purchase 8,70,29,000 Sales 22,70,52,000

Frieght & octroi 5,00,000 Closing stock 21,50,000
Wages 9,00,000
Factory lighting 17,00,000
Coal,gas and water 7,20,000
Carrige on purchases 12,00,000
Factory rent -
Import duty 8,50,000

To gross profit 13,63,03,000

22,92,02,000 22,92,02,000

69
 P&L A/C Of D.C cement

PARTICULARS AMOUNT PARTICULARS AMOUNT

To salary Gross profit 13,63,03,000

To Depreciation
Building 5,00,000
Machineries 11,40,000
Computer 40,000
Furniture 75,000
Vehicle 3,00,000 20,59,000

To interest on capital
Owncapital 14,97,762
Borrowed capital 18,30,598 33,28,360

To Advertisement 7,00,000
To other expense 35,00,000

Net profit transferred to final

a/c 12,18,65,640

13,63,03,000 13,63,03,000

70
 Balancesheet OF D.C cement

LIABILITIES AMOUNT ASSESTS AMOUNT

Capital 2,49,62,700 Land 2,00,00,000
Add : I.O.C 14,97,762 Building 50,00,000
Add :Net Profit 12,18,65,640 14,83,26,102 -depn 5,00,000 45,00,000
Machineries 95,00,000
SBI Bank Loan 1,66,41,800 -depn 11,40,000 83,60,000
Furniture 5,00,000
-depn 75,000 4,25,000
Vehicle 20,00,000
-depn 3,00,000 17,00,000
Computer 1,00,000
-depn 40,000 60,000
[Link] 21,50,000
Cash on Hand 2,55,54,580.4
Bank On balance 10,22,18,321.6

16,49,67,902 16,49,67,902

71
 Conclusion

The company is well equipment with machines & man

power the financial position of the company is very strong.

This project helped me a lot in having practical knowledge

about how actually the classroom theory applies.

72
 Suggestion
 To improve the distribution channel.
 To have need increase advertisement.
 To increase their sales.
 To increase public welfare activities and social development
activities.

73
 Bibliography

 [Link]
 [Link]
 Personal management-C. BMAMIRIA
 Principle of [Link]
 Marketing [Link]

74