INSTITUTE OF TECHNOLOGY AND

MANAGEMENT

A
PROJECT REPORT
ON
COST SHEET ANALYSIS
OF
LAXMI SOAP FACTORY
SUBMITTED TO: SUBMITTED BY:
SONAM SADHU JERRIN ALIYAS
ASSIT. PROFESSOR MBA1
st
YEAR(2
ND
SEM)





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ACKNOWLEDGEMENT

This project report is a result of efforts of a number of persons directly or indirectly associated. I
wish to acknowledge our deep appreciation for the valuable suggestion and guidance rendered to
me by them which has helped me in completing this project.
I am hearty thankful to Mrs Sonam Sadhu, for kindly approving this project work and
extending all the co-ordination for this.














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PREFACE
Cost sheet is a statement prepared to show the various elements of costs, like prime cost, factory
cost of production and total cost. It is prepared at regular intervals, for example, weekly, monthly
quarterly, yearly, etc. In some cases comparative figures of various periods are also shown in the
cost sheet so that assessment can be made about the progress of a business.


Cost sheet is a statement of cost showing cost per unit of any product at every level of
production. It is important to know at what stage of production we are and what price the
particular production stage has. Cost sheet is a statement of cost. In other words, when costing
information is set out in the form of a statement it is called a cost sheet. It is usually adopted
when only one product is produced and all costs are incurred for that product only. Cost sheet
may be prepared for a week, for a month, quarterly or yearly indicating various components of
cost such as prime cost, works cost, cost of production, cost of goods sold, total cost and also
profitability of production.







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INDEX















S.NO TOPIC
Page.
No
1 Preface 2
2 Acknowledgement 3
3 Introduction 5
4 Products 6
5 Costing 8
6 Bibliography 11
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INTRODUCTION:-

Laxmi Soap Factory was established in the year 1958. But for the Ranglani family, the roots of
soap manufacturing are traceable to the year 1910. Sheth Thakurdas Ranglani was based in
Karachi when he initially started a soap-manufacturing unit . After partition, Thakurdas migrated
to India and started a manufacturing unit in the year 1948.

Having worked hard, Sheth Thakurdas looked around and fixed his site in Pune and as a result
Laxmi Soap Factory was setup in the year 1959. Sheth Thakurdas passed away in 1981 but the
company still continues to flourish. To establish themselves in the competitive local market, it
was necessary to introduce a product which would speak for its own quality. A number of
experiments were conducted by Shri Ramchand Thakurdas Ranglani and the fruitful outcome
was "Foaran". This brand was introduced to the consumers in 1973.

This partnership firm under the guidance of Mr. Girish Ranglani, Mrs.K. Ranglani and Shri
Ramchand T. Ranglani have managed to conquer a segment of the market in Maharashtra,
Gujarat and Karnataka and exports to 45 Countries namely Malaysia, Dubai, Somalia, Angola,
Tunisia, Abidjan, Burkina Faso, Panama, United Kingdom, New york(USA), Ecuador (Latin
America), Loma, Congo, Oman, Yemen, Afghanistan, Iraq, Jeddah, Australia, Kuwait, Somalia,
Madagascar, Mozambique, Botswana, Sri Lanka, Bangladesh, Mauritius, Zimbabwe, FIJI -
ISLAND, New York, Congo , Muscat, Jeddah, Qatar, Canada. ARMENIA, MALAVI,
BURUNDI, Saudi Arabia, CONAKRY - GUINEA (WEST AFRICA), Cameroon , Cape Town -
South Africa. Laxmi Soap Factory operates on the principle of appointing stockists agents in all
towns and cities. The policy is to aim at smaller profit and larger turnover. Retail outlets and
Door to Door selling methods are not used. Though sales staff is employed to supervise, book
orders and conduct promotion campaigns.

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The company manufactures Laundry Detergent, Detergent Cake, Detergent Powder / Dish
Scouring bar and Toilet Soap / Laundry Soap / Hand Wash / Liquid Detergent / Multipurpose
Soap and Mesmerize Liquid Soap also have their own Sulfonation plant. The company intends to
go in for the manufacture of toilet soaps. As Mr.Girish puts it, "Ambitious plans are on the anvil
inspite of stiff competition from all types of manufacturers, big and small."
Products
To cater to the high demanding market we have worked towards producing a number chemicals
for cleaning. The chemicals are specially formulated to give the most effective results. Following
are the products:
Detergent Powder
Toilet Soap
Detergent Cake
Laundry Soap
Multi Purpose Soap
Dish Scouring
Bar Ramas Detergent Cake
Mesmerize Liquid Soap
Liquid Hand Wash
Liquid Detergent
Dish wash Paste
Beauty soap
Multi purpose liquid

Infrastructure
We have been a renowned industry and from the start have aimed at producing better products
everyday. The success to our dynamic specialized team who put in all the effort to achieve a
better quality. Our technical lab provides proper work facilities, to make the products of world
class standards. The latest science techniques are utilized to formulate our products for effective
use. Different blending machines are used for the betterment of our products.

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Team
Our industry has its own specialized team of lab technicians to manufacture all our products. The
quality procedure involved in formulating various compositions are effective. The team has
knowledge in all kinds to help produce products which are environmental friendly.
Quality
We produce good quality products. The products have been specially formulated to give the
desired results. Our quality is tested by special technicians to avoid any shortcomings, and the
product can be used to maximum efficiency. Not only this all products are eco-friendly and
biodegradable and pose not threat to environment.
Packaging
For packed convenience of clients we have packaging facilities for easy transport and delivery of
products. The products are sealed properly to avoid any leakage thus ensuring the safety of
products.
Research Development
Our team of research associates is continuously involved in improving and developing the
products. They are continuously researching to formulate all our products. Latest researchers are
used to improve the products. Organized testing of the chemicals is conducted before the final
product reaches the cleaning agents. The chemicals are tested for its biodegradability to avoid
hazards.
Clientele
We aim at giving our customers the satisfaction of associating with the best in the industry. We
supply a wide range of clients with our products. Our clients lists include various houses,
industries, hotels and motels.

Our reknown Clients are : D-MART, WALL-MART, HYPER CITY, SATR BAZAR etc.



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COST SHEET ANALYSIS
PARTICULAR PER UNIT PRICE TOTAl PRICE
DIRECT MATERIAL 5.8 1000000
Acids 1.76 300000
Speciality chemicals 1.47 250000
Ordinary chemicals 1.76 300000
Perfumes .21 35000
TOTAL 1.29 220000
Direct labour
Direct expense 3.11 530000
Prime cost 15.4 4134500
Factory overheads :
Fixed:
Depreciation 1.47 250000
Rent .58 100000
Power 1.02 175000
Insurance 0.88 150000
Supervisors salary 0.35 60000
Variable:
Electricity 0.41 70000
Running exp. Of machine .58 100000

Work cost/ factory cost 20.69 5039500
Office overheads:
Employee cost 5.8 1000000
Other exp.
Computer 0.71 120000
Telephone 0.06 10000
Taxes 0.24 40000
Carriage out ward 0.12 20000
Cost of production 27.62

6229500

opening stock of finished goods 2 200000
-Closing stock of finished goods 0 0
Cost of goods sold

29.62

6429500

Selling & distribution overheads:
Advertisement 2.35 400000
Delivery vehicles 2.06 350000
Petrol 1.03 175000
Packaging rates 0.3 50500
Cost of sales / total cost 35.36 7405000
Profit 18.51 3146700
Sales 53.87 10551700
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With the help of factory overhead , administration overhead & selling and distribution
overhead we can characterise the cost sheet and the total sales of laxmi soap factory is
10551700.
With the help of this information we can easily identify :-
Pvr
Breakeven point in rupees
Breakeven point in units












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CONCLUSION :-

PVR = Cost/ sales
= 7405000/ 10551700
= 0.70

Note:- to better understanding we can say that PVR is 70%.

Breakeven point (rupees) = fixed cost/ PVR
= 735000/ 0.70
= 1050000
Fixed cost include :-
Depreciation 1.47 250000
Rent .58 100000
Power 1.02 175000
Insurance 0.88 150000
Supervisors salary 0.35 60000




Breakeven point (Unites) = fixed cost/ cost
= 735000/7405000
= 0.099

Margin of safety Ratio = profit/ PVR
= 3146700/0.70
= 4495285.7

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BIBLIOGRAPHY:-

http://icabtutorial.com/costsheet-format/
http://www.moneycontrol.com
www.scribd.com
www.google.com