Accounting by mnmgroup



Established in 1992 by a visionary Shri Meghjibhai Patel, the company, K Patel
Metal Industries Pvt. Ltd. has grown today as a pioneer in manufacturing super
enameled and bare copper wires and strips. Copper wires and strips are general
purpose industrial raw materials with wide applications in manufacture of
transformers, motors, alternators, relays, switches, domestic appliances, lighting
fixtures and a host of other electrical and electronic products. The manufacturing
facility in Mumbai is equipped with latest machinery and equipment and the head
office is located at Borivali, Mumbai from where all marketing operations are
conducted whereas their sales office is located is Nasik. The company has a notable
national presence and has carved out a niche in International market. Their customers
include major electrical equipment manufacturers in India and abroad, and they
export products in Gulf countries and Africa. They have a highly qualified and
professional team supported by reputed technologists and disciplined work force. As
experienced insulated copper winding wires / strips producer, the group acquired
skills in product development, understanding international customer needs and quality
assurance practices. In the company's quest to meet the most discerning needs and
requirements of their valued customers, no compromise is made on quality. It has
customers     across     world     who     have     accepted     brand     and     quality.
To sustain its image as a quality conscious organisation, the group has commissioned
a quality assurance facility equipped with latest equipments. The group is awarded
ISO 9001:2000 certification and the products are also certified by UL & RDSO. The
company does not follow the Economic Order of Quality.

The company maintains stock records for finished products, for major store items,
raw consumption record, finished production record; finished goods dispensed record,
sales return register, purchase register, sales register, purchase return register and cash

Q.1 Briefly describe the product

Q.2 How is the product manufactured?

Q.3 From where do you get the raw materials?

Q.4 Is E.O.Q. followed by your company?

Q.5 Is labour paid by piece or by time?

Q.6 What are the various incentives given to the labourers?

Q.7 How much is the sales of the company approximately?

Q.8 Where is the factory located? Any other branches, if any?

Q.9 How many offices do you have?

Q.10 What are the various stock records maintained by the company?

Q.11 Could you provide us the tentative cost sheet of the product?

Q.12 To which company do you supply your products?

The   company      manufactures     many   wires   namely    Enamelled       Rectangular
Copper wire strips, Enameled round copper wire, Glass fiber covered copper wires
and strip, Paper covered copper wires and strips, Bare copper wire &strips.
However the main product it manufactures is Enamelled Rectangular Copper Wire
Strips. These strips are of many varieties including Polyester Enamelled Rectangular
Copper Wire Class, Polyesterimide Enamelled Rectangular Copper Wire Class,
Polyesterimide over coated with polyamide-imide enamelled Rectangular Copper
Wire Class, Polyvinyl acetal enamelled Rectangular Copper Wire Class.


After receipt of raw material CC Rod a sample having length of 500 mm is being sent
to Quality Control Laboratory for inspection. After receipt of Inspection report the
Copper rod is taken for start up of production as per the production plan.
Firstly the Copper Rod is taken in Bull Block/RBD to reduce the dimension of raw
material Copper for required dimensions. After drawing sizes from Bull Block/RBD
the material is sent for Wire Flattening Mill/Annealing/Enameling according to
production plan. In the Wire Flattening Mill the process will go on up to required
size and then the same is taken for Annealing followed by Enameling.
After Annealing process samples are sent to the Lab for testing. After Quality
confirmation the material is send for further process like Enamel Coating, Glass Fibre
Covering & Paper Covering.
After all the processes there is a process inspection as per quality plan, samples are
sent to Laboratory for final testing.
After final testing the material is being shifted to weighment and then transferred to
Bonded Storage Room (BSR) for despatches. Each and every consignment is
accompanied by a Test Report from Q.C Laboratory.


                                                                                         Receipt of order,
                                                                                         specifications, inspn. plans &
                    Receipt and logging           Review of enquiry, offer               approved samples, resolving
Marketing           of enquiry                    making                                 discrepancies review &

                               Review of order, stocks
                                                                    Indent on vendor ,          Supply
Planning & Purchasing          review and pending
                                                                    prodn. planning             monitoring
                               indents review

                               Vendor evaluation / Revaluation of
                                                                                     To production
                               existing vendor

Stores                                                   Receipt of supply from
                            Stock ledger
                                                         vendor & customer / receipt
                                                         of finished product                          Customer
                            QA plans &
                            Inspection/                   Calibration            Customer complaint
Quality Assurance           Customer

                            Receipt of
                            raw material,            Production &                        Final
Production                  production.              process inspection                  inspection

                            Process validation/

Maintenance                 Preventive &
                            Breakdown maintenance

The workers are paid generally on an hourly basis. This is because their working
hours keep on fluctuating depending upon the orders received by the company. Since
they work on a temporary basis the easiest way to pay them remuneration is by the
The company provides them with other benefits to boot their morale. Some of these
include housing facilities, production incentives, and medical allowances. The
company takes great care of the employees and ensures physical security as the
production processes are hazardous to the safety of the employees.


The raw materials required for manufacturing the product are obtained from various
companies which are Hindico Industries Ltd – unit Birla copper, Sterlite Industries
Ltd; Polycab wires Pvt Ltd; Dr. Beck Ltd(India) – insulating material.

The product is supplied to L &T, Bharat Bijli Limited, Crompton Greaves, Bharat
Heavy Electrical, Indian Railway, Defence(army and navy), ABB Ltd, Encore
switches gear and cable Ind Ltd, Kerala electrical and allied Eng. Co. Ltd, the Hukeri
Taluka Co-op rural electrical Ltd(Karnataka), Emerson network power(India) Pvt.
PARTICULARS                         Rs.         NO. OF KG.   COST PER
Copper rod                          35,00,000   10,000       350.00
Varnish                              1,20,000   10,000        12.00
Transport Inwards                      25,000   10,000         2.50
       PRIME COST                   36,45,000   10,000       364.50

Power and Fuel                         75,000   10,000         7.50
Labour Charges                         60,000   10,000         6.00
Stores and Consumable                   5,000   10,000         0.50
Repairs to Plant and Machinery         10,000   10,000         1.00
Factory Cleaning                        2,500   10,000         0.25
Factory Lighting                       20,000   10,000         2.00
        WORKS COST                  38,17,500   10,000       381.75

Directors Remuneration                 20,000   10,000          2.00
Telephone and Mobile Expenses           4,000   10,000          0.40
Commission                             15,000   10,000          1.50
Rent, Rates and Taxes                   2,000   10,000          0.20
Printing and stationery                 2,000   10,000          0.20
Security Charges                        3,000   10,000          0.30
Legal expenses                          2,000   10,000          0.20
General Expenses                        6,000   10,000          0.60
     COST OF PRODUCTION             38,71,500   10,000       387.15

Packing Material                       32,500   10,000         3.25
Sales and Promotion                     6,000   10,000         0.60
Rent of Warehouse                      30,000   10,000         3.00
Commission on sales                    60,000   10,000         6.00
  COST OF SALES                     40,00,000   10,000       400.00

Add: PROFIT                          8,00,000   10,000        80.00

SALES                               48,00,000   10,000       480.00

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