MACHINERY FABRICATION / ENGINEERING WORKSHOP

1. INTRODUCTION
The project is for
1 Manufacture of engineering spares
2 Undertaking job work on lathe for turning and welding fabrication
requirements.

2. Market
The market for engineering workshop has got wide scope due to fast growth of
Industrialization, especially in the Raipur sector. Spares for industries and
their machine parts, etc can be manufactured or repaired.
Non-availability of spare parts and expensive spares is also creating problems
for various industries.
So locally available solution is great market potential with promoters having
industrial experience

3. MANUFACTURING PROCESS
The manufacturing process depends upon the type of job. Generally, the job
includes raw material, cutting, drilling, turning & facing, milling & parting off,
inspection and dispatch.

4. PRODUCTION CAPACITY PER ANNUM
1200 Ton

5. PROJECT COST/CAPITAL INVESTMENT
S.No Description Amount Rs.
1 Fixed Capital 24550100.00
2 Working Capital for 2 Month 1400000.00
3 Preliminary & Preoperative Expense 1000000.00
Total Project Cost 26950100.00

6. MEANS OF FINANCE
S.No Description %age Amount Rs.
1 Promoter Contribution 47% 12700000.00
2 Subsidy/Soft Loan 19% 5000000.00
3 Term Loan 34% 9250100.00
Total 26950100.00












7. FINANCIAL ASPECTS
A. FIXED CAPITAL
i. Land and Buildings details attached annex-1 Rs. 18000000
ii. Machinery and Equipment details attached annex-2 Rs. 6437600
iii security deposits Rs 112500
TOTAL Rs 24550100

B. WORKING CAPITAL
i. Salaries & Wages (per month)
S.No Description Nos. Sal/mon. Amount Rs.
1 Skilled worker/Entrepreneur 14 25000 350000
2 Skilled workers 4 12000 48000
3 Unskilled workers 6 7000 42000
Total 440000

ii. Raw Material (per month)
Labour oriented job work shop. Party will supply the required raw material.

iii. Utilities (per month)
S.No Description Unit Amount Rs.
1 Power LS 55000
2 Water LS 1200
Total 56200

iv. Other Expenses (per month)
S.No Description Amount Rs.
1 Postage, Telephones & Stationery Expenses 6000
2 Transportation & Conveyance Expenses 12500
3 Consumeble Stores 200000
4 Reparis and Maintenance Expenses 15000
5 Miscellaneous Expenses 10000
Total 243500

v. Total Working Capital (per month)
S.No Description Amount Rs.
1 Salaries and Wages 440000
4 Utilities 56200
5 Other Expenses 243500
Total 699800

8. COST OF PRODUCTION (PER ANNUM)
S.No Description Amount Rs.
1 Total Working Capital 8400000
2 Depreciation @ 15% 1542000
3 Interest on term loan @ 12% 989040
Total 10931040

9. TURNOVER (PER YEAR)
S.No Description Amount Rs.
1 Undertaking job works like turning, 14400000
welding, sheet metal fabrication, etc
Total 14400000


10. PROFIT ANALYSIS & RATIOS
1 Net Profit Rs. 3468960
2 Percentage of Profit on Sales 24%
3 Percentage of Return on Investment 53%
3 Break Even Point 61 %

Break even point
1. Fixed cost per annum Rs.
a. Depreciation on machinery & equipments @15% 965640.00
b. 40% of other expenses 97400.00
c. 40% of salary & wages 176000.00
e. Interest on capital investment @14% 3437014.00
f. Insurance / labour policy 36,000 .00

Total= 4712054.00

Breakeven point = 57.6%