1. Prepared By
DADHANIYA VISHAL B.
Class
M.B.A.
Academic Year
2009 - 2011
Roll No.
17
Institute
N.R.VEKARIA INSTITUTE OF BUSINESS
MANAGEMEMNT STUDIES, JUNAGADH

2. Submitted To
Mr. Dr.RAJESH PATEL

3. DECLARATION
I undersigned DADHANIYA VISHAL B. a student of M.B.A.
hereby declare that the project work presented in this report is my
own work and the report has been prepared by my own efforts.
Date:
Place:
Signature
________________
(DADHANIYA VISHAL B.)

4. PREFACE
For Socio economic growth and balanced structure development
SSI are very important tool. It is considered highly for the creation
of employment opportunities as well as development of
entrepreneur skills. The better use of scarce financial resources and
appropriate technology is also ensuring by the SSI.
In the growth of the country the SSI gives vital contribution.
Therefore it is essential to understand management and working of
SSI as a student of management.
So I have prepared this project report on one of the SSI product
that is computer furniture.

5. ACKNOWLEDGEMENT
We can not do a single thing without contributor help of other
people. Study is always here behind any success.
In the preparation of this report may people have contribute a lot
first of all I would like to thankful to Dr. Rajesh Patel than to my
parents secondly to my friend who is always here with me in
gathering info.
Date:
Place:
Signature
________________

6. (DADHANIYA VISHAL B.)

7. INDEX
Sr. Particular
No.
1. Project At a Glance
2. Bio-data of Partners
3. Introduction
4. Location Justification
5. Raw-Material
6. Address of Machinery & Raw-material Suppliers
7. Product Potential
8. Market Potential
9. Production Process
1 Production Capacity
0.
1 Financial Details
1.
1 Sources of Finance
2.
1 Project Summary
3.
1 Cash Flow Statement
4.
1 Fund Flow Statement
5.
1 Conclusion
6.

8. INTRODUCTION
Whether you work from home full time or just need somewhere
to put your computer, our great range of office furniture has everything
you need to make the most of your space. From fully kitted out offices to
space-saving desk solutions, ergonomic chairs to filing cabinets, our
products come in a variety of styles to suit any budget. It all comes with a
no-nonsense 30-day money back guarantee, so you can buy with
confidence.
If you want stylish office furniture for everyday family
living, our Easy Living collection is for you. Hard working and good
looking, the range is available in a number of materials and finishes. To
really make a style statement, choose one of the ultra-modern pieces
from our Contemporary collection. We’ve combined the boldest designs
with the latest finishes that will add the ‘wow’ factor to any space.

9. PROJECT AT A GLANCE
Name of the unit : “Unique Computer Furniture”
Address of unit : 182 / K1- M. Road,
Opp. Poly Vastra Bhavan,
Aji GIDC – 3, Rajkot
Types of the unit : small scale industry
Form of organization : Partnership firm
Registered office no. : applied for
Partner’s Name : DADHANIYA VISHAL B
Araniya Ashish J.
Brand Name : “Unique”
Product : Computer Furniture

10. BIO-DATA OF PARTNERS
Partner # 1:
Name : DADHANIYA VISHAL B.
Age : 22 Years
Address : To. Ishwariya,
Ta. : Kutiyana
Dist. : Porbandar
Education qualification : MBA
Financial contribution : 55%
Partner # 2:
Name : Araniya Ashish J.
Age : 24 years
Address: To. Ishwariya,
Ta. : Kutiyana
Dist. : Porbandar
Education Qualification : MBA

11. Financial Contribution : 60%

12. INTRODUCTION
Small scale industry is quickly gearing up to meet emerging challenges
in the global economy through content innovation and adoption of
cutting edge technology to provide supervisor customer solution.
The definition of small scale industry varies from one country to
another.
Generally a SSI is presently defined as “a unit engaged in
manufacturing, servicing, repairing, processing preservation of goods
having investment in plant & machinery at an original cost of
exceeding 1 crore.
The small scale industry sector as an important segment of the Indian
economy accounts for:

13. 1. 95% present of the industrial unit
2. 40% of output of the manufacturing sector
3. 35% of the total exports & provides employment to around 18
millions persons.
More recently, enhancing SSI has been viewed as an effective way of
fostering the private sectors, contribution to both the growth and the
equity objective of the development.
The SSI sector has been receiving special attention from the policy
makers in addressing its requirements be it credit, marketing,
technology and entrepreneurship development, fiscal on infrastructural
support.

14. LOCATION JUSTIFICATION
Location is also an important factor determining the ultimate success or
failure of SSI on it may depend on small industries ability to obtain an
adequate and regular supply of its raw materials at a minimum cost to
maintain a sufficient labor force and to serve satisfactorily its
customers.
The important factors which should be taken into account in the
selection of are site are …
Availability Of Raw Material:
Aji GIDC, it is a place from where firm can easily obtain raw material
easily at a low transportation cost. Nearness to the sources of raw
material reduce the price.

15. Availability Of Skilled And Unskilled Labor:
Rajkot is near rather we can say that firm’s location is in the Rajkot. So
firm can easily get skilled workers and the firm has villages near to
their location so they can easily get the unskilled labor at a lower cost.
Nearness To The Sources Of Motive Power:
Govt. is providing enough power to the firms which are located in Aji
so firm has not any problem about the motive power.
Nearness To The Market:
Firm has enough market around their territory so the firm can easily
find the customers. Due to nearness to the market transportation cost
will reduce so ultimately price will reduce. So the firm can earn more
profit.
Availability Of Transport Facility:

16. Private or government transportation are available in Aji GIDC so firm
has not any problem obtain raw material for giving the final product
into market.
Suitability of Climate:
There are no much residential area near to the location of industry
whole area of Aji GIDC is utilize for the purpose of industrial area. ISO
the location of unique furniture is suitable to the climate.
Portrait of product
Within a carved span of time, computers have carved out a niche in the
history of mankind and changed the entire gamut of human life at an
overwhelming. Be it business academic, defense strategy, budgeting
research, engineering, medicine, space exploration, communication,
travel and hospitality, utilities or designing, computers have established
themselves as an indispensable part and so also the computer furniture.
Some commonly used computer furniture are computer tables,
computer cum printer tables, printer tables computer chairs with or
without arms, computer chairs with or without coaster wheel base etc.

17. RAW MATERIAL
Raw material is the basic necessity of all the manufacturing company.
It is the heart of the manufacturing company.
The basic and important raw materials for computer furniture are …
1) Ball bearing channel is 15” long & 2 mm thick
2) Pre laminated particle board 18 mm
3) Plastic fittings, floor adjuster screws, PVC beading
4) PUF arm set
5) Tapestry / fabric
6) MS strip 50 x 5 mm size, MS round 1.5 size etc
7) MS pedestal arms of assorted size
8) Twin roller type ABS coaster set
9) Plywood seat
10) PVC beading shoes for chairs

18. 11) Powder coating compound
Raw Material ( in working capital )
Sr. Particulars No. Rate Amount
(Rs.) (Rs.)
1 MS square and rectangular 46 MT 22000 10,12,000
section of assorted size / MT
2 Ball bearing channel 15” long 4600 15 69,000
and 2mm thick set / set
3 Both side pre-laminated particle 6000 600 36,00,000
board 18 mm thick sq. mt sq. mt.
4 Plastic fittings, floor adjuster L. S. 2,25,000
screw, PVC beadings
5 PUF arm set: (set) (chair)
1) For general chair 7000 200 14,00,000
2) For executive chair 1500 350 5,25,000
6 Tapestry / fabric: (Mtr) (Mtr)
1) For general type chair 10,500 100 10,50,000
2) For executive chair 3750 150 5,62,500
7 MS strip 50 x 5 mm size, MS 81 15500 12,55,500
round 1.5 size etc. MT MT
8 MS pedestal arms of assorted 42.5 2500 10,62,500
sizes Set MT

19. ADDRESS OF MACHINERY & RAW MATERIAL
SUPPLIERS:
1. M/s. Chandradeep Industries
SCO 32, G. S. Complex,
1st floor, Sangeet Cinema Road,
Ludhiana
2. M/s. Akal Industries
240, St. No. 3, Darmesh Nagar,
Nr. Campa Cola Chowk,
Ludhiana
3. M/s. A. P. Enterprise
40, New Kapur Nagar,
Sultanwind Road,
Amritsar – 143 006
Ph.: 2234099
4. M/s. Nightangle Products

20. Bachittan Nagar,
Nr. GNE, College, Gill Road,
Ludhiana
5. M/s. Welding & Tools Corporation
GT Road, Miller Ganj,
Nr. Overbridge,
Ludhiana
6. M/s. Kalgidhar Foundry & Agro Ind.
GT Road, Opp. Power House,
Mandi Gobinagar
7. M/s. Ajit Electro. Sales
9, Gurudwara Market,
Opp. Manager Cinema,
GT Road, Ludhiana
8. M/s. A. P. Engineering Works
42, New Kapoor Nagar,
Sultanwind Road,
Amritsar 143 006.
9. M/s. Guru Nanak Fabricators

21. 3201, St. No. 2, New Janta Nagar,
Opp. Arora Palace, Ludhiana 141 003.

22. PRODUCT POTENTIAL
Within a covered span of time, computers have covered out a niche in
the history of mankind and changed the entire gamut of human lift at an
overwhelming ace. Be it business academics, defense strategy,
budgeting research engineering, medicine, space exploration,
communication travel and hospitality, utilities or designing, computers
have established themselves as an indispensable part and so also the
computer furniture. Some commonly used computer furniture are
computer tables, computer cum printer, tables printer tables, computer
chairs with or without arms, computer chairs with or without coaster
wheel base etc.

23. MARKET POTENTIAL
The market demand for computer furniture is increasing day by day
with the increasing in use of the computers. Computer furniture has got
domestic as well export market. Long settling hours on computers has
necessitated the use of computer furniture such as table and chair
having proper dimensions and specifications .computer tables are
designed tin such a way so as to accommodate monitor, CPU, keyboard
and other peripherals etc. with the optimum utilization of horizontal
and vertical space. Care is also given to provide sufficient leg space,
free hand movement for operating mouse etc. Care is also taken in
designing and manufacturing computer chairs to suit the computer
table. Long sitting hours on computer clubbed with improper spinal
support on chair have become the major cause for backache to many
computer users. Computer furniture manufacturers are bringing out
innovative changes to cope with this problem. Computer furniture is

24. being mainly used in offices, computer training institutes, laboratories,
schools, colleges and homes.
PRODUCTION PROCESS
Computer Tables:
The computer table shall be fabricated in knock down design for easy
assembly and transportation. The base frame shall be made of hallow
rectangular mild steel section of 50 mm X 25 mm X 1.2 mm thickness
by cutting in desired size and welding the sections. The open edges of
base frames are protected by PVC cover level adjusters are mounted
suitably at the bottom edge of base frame.
Printer Table
Printer table dose not have any drawer/shelf etc whereas the computer
table shall have a suitable drawer for key board made of 18 mm of one
side pre-laminated medium density board below the drawer, the
provision is made for siding board of 9 mm thickness and width 300

25. mm which can be taken out on either side upto approximate 225 mm
for placing the mouse and pad.
Computer cum Printer:
Computer cum printer table shall also have a key board drawer shelf
siding board (for keeping the mouse and pad) and a lockable drawer.
Two shelves are also made for keeping CPU UPS and stationery etc.
The side support shall be made of 50 X 6 mm MS flat welded to main
frame. The arms shall be supported on the side frame.
Computer Chairs:
The computer chairs shall be revolving type fabricated in knock down
design for easy assembly and transportation of 12 mm thick ply,
pressed formed and ergonomically shaped seat and back which are
easily available in the market in standard sizes. These seat and backrest
shall be covered with mechanically formed PUF 50 mm thick with
underneath coirised rubber sheet of 12 mm thick.

26. PRODUCTION CAPACITY
Computer Tables
Computer tables over all size :
900 x 60 x 750 mm - 1800 nos
Computer cum printer table over all size :
1200 x 700 x 750 mm – 1000 nos.
Printer table cover all size :
750 x 700 x 75 mm – 1800 nos.
Computer Chairs
Computer chairs without arms and adjustable seat having size :
725 x 725 x 950 – 1050 mm – 4000 nos.
Computer chairs with arms and adjustable seat height size :
725 x 725 x 950 – 1050 mm – 3000 nos.
Executive computer chairs with arms and adjustable seat height of
size :

27. 725 x 725 x 1100 – 1200 mm – 1500 nos.
Motive Power:
25 HP
Energy Conservation:
Shunt capacitors should be provided to control power factor. As
electricity is used as a supply of energy in the unit hance, for better
results efficient motor should be used .tube lights, fans etc. should be
kept off as and when not required.
Pollution Control:
Noise pollution created by machines should be controlled within limits.

28. FINANCIAL DETAILS
FIXED CAPITAL DETAILS
Land and building:
Description Amount
600 sq. mtrs. Of covered area @ Rs. 20 per sq. mtrs. Per 12000
month on rent (600 x 10)
Machinery and equipments:
Sr. Description Qty Amount
I Multi purpose wood working machine 1 45,000

29. II Hand operated screw press Nos. Arc welding 1 30,000
machine 300 AMP 18,000
Gas welding set 10,000
Pipe shearing Machine 4” size 20,000
Double ended bench grinder 6” 8,000
Flexible shaft grinder 6” wheel size 8,000
Bench drilling machine ¾ “ Cap. With motor 17,000
Portable drilling machine 7,000
Powder coating equipment 2,00,000
Air compressor 60,000
Paint baking oven temp 300 C , 8’ x 6 ‘ size 1,00,000
Phosphating plant 50,000
Total 5,73,000
Electrification and installation @ 10% of the 57,300
cost of machinery
Tools jigs fixtures etc. 10,000
Offices, furniture etc. 75,000
Total 7,15,300
III Pre operative exp. 30,000
Total fixed capital (II + III) 7,45,300

30. Machinery Furniture Pre operative

31. WORKING CAPITAL
Staff and Labor:
Description No. Salary Amount
Manager 1 8,000 8,000
Accountant cum clerk 1 3,500 3,500
Skilled workers 4 3,000 12,000
Semiskilled workers 5 2,500 12,500
Unskilled workers/ peon 4 1,800 7,200
Total 43,200
Add 10% perks 4,320
Total 47,520
14000
12000
10000
8000
6000
4000
2000
0
Manager Accountant Skilled Semi skilled Unskilled

32. Utilities:
Description Amount
Electricity 13,500
Water 1,000
Total 14,500
Electricity Water

33. Other Contingent Expenses:
Description Amount
Rent 12,000
Postage stationary 1,700
Telephone 2,000
Transportation charges 7,000
Advertisement and publicity 3,500
Insurance 1,000
Traveling exp. 4,000
Misc. expenses 5,000
Total 36,200
Misc.
Travel
Insurance
Advertise
Transport
Phone
Postage
Rent
0 2000 4000 6000 8000 10000 12000
Total Recurring Exp:
Salaries 47,520
Raw material 19,26,000
Utilities 15,000

34. Other contingent exp 36,200
Total 20,24,720
Total working capital:
2024720 x 3 months
= Rs. 6074160
Total Capital Investment:
Fixed capital 745300
Working capital ( 3 months) 6074160
Total 6819460

35. Fix e d Wo rking

37. SOURCES OF FINANCE
Project Cost:
Sr. Particular Total Govt. Own
Contribution Contribution
For Fixed Assets
1 Machinery & 5,73,000 3,43,800 2,29,200
Equipments
2 Office furniture 75,000 45,000 30,000
3 Fixtures 10,000 6,000 4,000
4 Preoperative Exp. 30,000 18,000 12,000
Total 6,88,000 4,12,800 2,75,200
For Working Capital 50% 50%
Working Capital 60,74,160 36,44,496 2,42,966
(3 months) 30,37,080 30,37,080
Total Project Cost 67,62,160 40,57,296 27,04,864
Means of finance:
Particular Amount
For fixed assets
Term loan 4,12,800
Own contribution 1,55,200

38. Relatives contribution 1,20,000
For working capital
Term loan 30,37,080
Own contribution 20,37,080
Other contribution 10,00,000

39. Cost of Production (Per Annum):
Particular Amount
Total recurring cost 2,42,96,640
Depreciation on machines @ 10% 57,300
Depreciation on tools & fixtures etc @ 25% 2,500
Depreciation on office furniture equipments @ 20% 15,000
Interest on capital investment @ 16% 10,91,113
Interest on Borrowed Loan
On Fixed Capital 49,536
On Working Capital 3,64,449 4,13,985
Total 2,58,76,538

40. Turn Over:
1 Computer Table 1700 2250 38.25
Size 900 x 600 x 700 m
2 Computer cum printer table 1000 2600 26.00
Size 1200 x 700 x 750 m
3 Printer table 1800 1800 32.40
Size 750 x 700 x 750 mm
4 Computer chairs without arms 3800 1900 72.20
Size 725 x 725 x 950 - 1050 mm
5 Computer chairs with arms 3000 2100 63.00
Size 725 x 725 x 950 – 1050 mm
6 Executive computer chair 1500 3000 4500
Size 725 x 725 x 1100 – 1200 mm
Total 276.85

41. Net Profit:
= Turnover – cost of Production
= 276.85 – 258.76
= 18.09 lacks
Net Profit Ratio:
Net profit per year x 100
Turn over per year
18.09 x 100
276.85
6.53%
Rate of Return on Investment:
Net profit per year x 100
Total investment
18.09 x 100
68.19
26.53%

42. Break Even Point:
Particular Amount
Depreciation on machinery, furniture etc. 74,800
Rent of building 1,44,000
Interest on total investment 10,91,113
40% of salary & wages 2,28,096
40% of other contingent 1,13,360
Total 16,61,369
Break Even Point:
Fixed Cost x 100
Fixed Cost + Profit
16,61,369 x 100
16,61,369 + 18,09,000
16,61,369 x 100
3470369
47.87 %

43. CONCLUSION
To end up the decision, since the starting of the project with the
selection of the “Unique Computer Furniture” for a new segment of
consumer with the greater potentially.
This is my pleasure to put this report before the university launching
the “Computer Furniture” As s promoter of this unit, I have made all
the required efforts for the successful launching of all products, I hope
that the will be success in the market and specially my brand,
“Unique”. The main aim of mine for launching this kind of product is
just to associate the society by providing best quality product.
Govt. should support these kinds of small scale units to serve the public
with qualitative items. I also want to help in generation of employment
opportunities and to raise standard of living.

44. At least I am again very thankful to all of the concerned people who
helped me in preparing this report. This is also true for me as I thought
my report could express my thought researches for unique computer
furniture. It was a great experience that I might want to deal in future.
That’s all it will be great opportunity for every student.