Introduction

ORGANIZATIONAL STRUCTURE

SALARY STRUCTURE

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%
Also fire training given to all our employees.

Segmentation & Targeting

Demographic
Age
Occupation

: 10 to 20 yrs
: Student

Psychographic
Lifestyle

school going children

Buying Behavior

Attractive, colorful,
sweet

Personality

compulsive, authorial

Segmentation & Targeting

Demographic
Age
Occupation

: 25 to 50 yrs
: Employed, businessman

Psychographic
Lifestyle
Buying Behavior
Personality

: Outward oriented
: Health conscious
: Ambitious

Marketing Mix
4Ps OF MARKETING
1. Product

2. Price
3. Place
4. Promotion

Product

Price
Scoops: (Single Scoop)
Catch out Vanilla
Googly Strawberry
Bowled Black current
Not out Nuts
All rounder Chocolate

Rs.20
Rs. 20
Rs. 35
Rs. 23
Rs.25

Family Packs:(750ml)
Catch out Vanilla
Googly Strawberry
Bowled Black Current
Not out Nuts
All rounder Chocolate

Rs. 80
Rs.80
Rs.100
Rs.170
Rs.120

Place

Supermarkets
Provision stores
Department stores
Railway station
Bus Stop

Promotion
Discount coupons
Free samples of ice cream (in schools &
colleges)
Printed t-shirts
Banners in school, college & corporate
canteens
Online Promotion
send a free ice cream cake to the local
radio station for a local DJs birthday
(you might get an on air mention)

MARKET RESEARCH
Market research is a systematic design,
collection, analysis, and reporting of data
and findings relevant to a specific
marketing situation facing the company.
Method of collecting data?
Sample size?
Respondents?

Data Interpretation
When we talk about ice cream, which
brand you prefer more?
Amul Vadilal Kwality Walls
Others
Most Preferred brand
90
80
70
60
50
40
30
20
10
0
Amul

Vadilal

Kwality Walls

Others

Which flavor you like the most?

54

60

50

40

23

30

23
17

16
20

10

10

0
Vanilla

Butterscotch

Chocolate

Strawberry

Fruit flavour

Others

You consume ice cream as:

Others - 0

Cup - 83
Party pack/ Family pack 75

sundae - 63
Cone - 75

Candy - 64

How often do you eat ice cream?

Every day, 5

Every month, 27

Every week, 32

Twice/thrice a week, 20

What is your monthly expenditure

on consumption of ice-cream?
More than 500, 9

Less than 100, 28

200-500, 14

100-200, 32

What are your Expectations about

ice cream?
70

66

60

50

40

30

20

14
10

0
Customized icecream

New Flavours

Fat Free

Sugar Free

COST OF PROJECT
Particulars

Amount(Rs)

Land & Building

5000000

Plant & Machinery

22,52,500

Furniture

112900

Working Capital

1132611

Ware house

1501989

Total Cost

10000000

SOURCE OF FINANCE

Particulars

Amount(Rs)

Partners Capital(4*1500000)

6000000

Loan From Financial Institutions

4000000

Total

10000000

DEPRECIATION
Depreciation on Plant & machinery @15% (SLM)
Depreciation on furniture & fixture @10% (SLM)
Depreciation on Land and building @10% (SLM)
Total Depreciation
Year

Depreciation

849165

747355

658260

580227

511830

Particulars

2013-14

2014-15

2015-16

2016-17

2017-18

Total Factory
Overheads

1220333

1248445

1518957

1937234

2184402

Total Office &

Administrative

2148751

2103452

2058277

2058277

2044363

Total Current
Assets (A)

1638154

2029192

2601538

3239564

3722469

Total Current
Liabilities (B)

505543

665996

798351

1006221

1110459

Total Working
Capital (A-B)

1132611

1363196

1803187

2233343

2612010

WORKING
CAPITAL

COST SHEET
Particulars

2013-14

2014-15

2015-16

2016-17

2017-18

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

4235771

6205972

7550995

9485844

10610295

231042

317503

383009

482591

534872

Direct Labour

348000

348000

558,000

600600

648630

Prime Cost

4814813

6871475

8492004

10569035

11793797

Opening Stock
of Raw
Material
Purchase of
Raw Material
Carriage inward
&
Transportation
(4%)
Other Charges1%

Total Expenses
(-)Closing
stock of Raw
Material
Consumption of
Raw Material
Direct
Expenses

Cont...
Prime Cost

4814813

6871475

8492004

10569035

11793797

(+)Total Factory
Overheads

6035146

8119920

10010961

12506269

13978199

Cost of Production

6035146

8119920

10010961

12506269

13978199

(+)Total Office &

Administrative
Expense

2148751

2103452

2058277

2058277

2044363

Cost of
Production of
Finished Goods

8183897

10223372

12069238

14564546

16022562

Add: Opening
Stock Of Finished
Goods

684195

848708

989914

1187255

Less: Closing
Stock Of Finished
Goods

684195

848708

989914

1187255

1299578

Cost of
Production of
goods Sold

7499702

10058859

11928032

14367205

15910239

(+)Total Selling &

Distribution
Expenses

1284041

1511333

1575615

2119105

2177521

Total Cost

8783743

11570192

13503647

16486310

18087760

Profit/(Loss)

-340000

74000

350000

574000

650000

Sales

9123743

11644192

13853647

17060310

18737760

PROFIT & LOSS ACCOUNT

Profit Before Tax

Total

Tax Provision @ 30% in case of Profit

Profit After Tax

-340000

74000

350000

574000

650000

10193008

13022073

15481908

19051883

20928791

22200

105000

172200

195000

-348654

51800

245000

401800

455000

Balance Sheet of M/s T20 Ice creams for the year

ended 2013-14
Liabilities

Amt.

Amt.

Share Capital
Partners fund
(150000*4)

6000000

Loan from Bank

4000000

Add: Interest

560000

4560000

Current Liabilities

Assets
Land and building

5000000

Less: Depreciation 10%

500000

Plant and machinery

2252500

Less: Depreciation 15%

337875

Furniture

112900

Less: Depreciation 10%

11290

Amt.

4500000

1914625

101610

Current Assets

Sundry Creditors

505543

Bills Payables

88757

594300

Inventory

1069265

Sundry Debtors

517903

Cash and Bank Balance

50897

Bills Receivables
Total of Liabilities

Amt.

11154300

Total of Assets

3000000

4638065
11154300

CASH FLOW STATEMENT

PARTICULARS

2013-14

2014-15

2015-16

2015-17

2017-18

NET PROFIT AFTER TAXATION

(PAT)

-348654

51800

245000

401800

455000

NET CASH FLOW FROM

OPERATING ACTIVITIES

-101800

1611941

1986050

2039383

1928297

NET CASH FLOW FROM

INVESTMENT ACTIVITIES

-7365400

NET CASH FLOW FROM

FINANCIAL ACTIVITIES

8640000

TOTAL

1172800

251941

626050

679383

568297

Add : Opening Balance

1172800

1424741

2050791

2730174

CLOSING BALANCE

1172800

1424741

2050791

2730174

3298471

CASH FLOW FROM OPERATING

ACTIVITIES

-1360000 -1360000 -1360000 -1360000

CAPITAL BUDGETING AND

INVESTMENT DECISIONS
PVC0

9601479

Year

EBT

-340000

74000

350000

574000

650000

Less : carry forward of Losses

NIL

ADD: Depriciation

849165

747355

658260

580227

511830

Add: Non Cash Exps

825000

660000

660000

550000

550000

Cash Inflows before Tax

1334165 1481355 1668260 1704227

1711830

less:Tax

After Tax Cash Inflows

ADD: Depreciation

22200

172200

195000

1334165 1459155 1563260 1532027

1516830

849165

511830

747355

105000
658260

580227

Fixed Assets Released (other than

Land)
Expected Value of Land

2081552
5750000

Working Capital Investment Released

996698

Net Cash Inflows

PVF @ 20%

PVCI

TOTAL PVCI

10016655

Less : PVCO

9601479

NPV In 5 Years At Cost of Capital 20% 415175.6

2183330 2206510 2221520 2112254 10856910

0.833

0.694

0.578

0.482

1818714 1531318 1284039 1018106

0.402
4364478

Cont...
PVF @ 22%

PVCI

TOTAL PVCI

9462418

TOTAL PVCO

9601479

NPV In 5 Years At Cost of Capital

22%

-139061

DIFFRENCE OF NPV

554236.6

DIFFRENCE OF RATE
IRR

PAYBACK PERIOD

0.671

0.55

0.451

179033
1480568 1221836 952626.6
1

0.37

4017057

2
-2.396

CUMMULATIVE CASH FLOW

TOTAL CASHOUTFLOW

0.82

1818714
25471649

2.9YEARS

3350032

4634071

5652177

10016655

BREAK EVEN ANALYSIS

Particulars

2013-14

Sales

9123743

Total of V.C.

6786773

Contribution

2336970

F.C.

4284890

P/V Ratio = contribution/sales * 100

=
=

2336970/9123743* 100
25.614%

Break Even Sales = Fixed Cost/ P/V Ratio

=

4284890/ 25.614

167287.0305