CHAPTER V

( in weeks )
1 ACTIVITY FLOW START FINISH

(A) Possession of Land after executing Legal Documents 0 4

(B) Placement of order for plant & machinery and its delivery 46 48

(C) Commencement and completion of Building Repairs 4 46

(D) Start & completion of installment of Plant & Machinery 48 50

(E) Comencement of Trial to Commercial Production 50 52

2 DETAILS OF PLANT & MACHINERY

S.NO ITEM SOURCE / MAKE NUMBER INSATALLED VALUE

IN Rs.

1 CUTTING MACHINE HITACHI 6 60000.00

2 EDGE BENDING POST FORMING ITALIAN 2 500000.00
MACHINE
3 SANDER HITACHI 9 45000.00
5 VICES ( DIFFERENT SIZES ) LOCAL MARKET 300 250000.00
6 SEWING MACHINES SINGER / USHA 6 42000.00
7 PLAINER BOSCH 6 36000.00
8 DRILL MACHINE ELECTREX 15 60000.00
9 HAMMER MACHINE BLACK & DECKOR 15 225000.00
10 JIG SAW DEWAULT 6 36000.00
11 MOULDING MACHINE LOCAL MARKET 3 90000.00
12 WELDING MACHINE LOCAL MARKET 3 36000.00
13 COMPRESSOR LOCAL MARKET 6 90000.00
14 SPRAY PAINTING SET LOCAL MARKET 1 75000.00
15 POWER PRESS LOCAL MARKET 1 125000.00
16 POST FORMING MACHINE LOCAL MARKET 1 25000.00
17 LAMINATION PRESS BOARDS LOCAL MARKET 75000.00
 & OTHER MISCELLANOUS MACHINES TOTAL Rs. 1770000.00

3 REQUIREMENTS OF RAW MATERIALS & CONSUMEABLES

S.NO ITEM SOURCE ANNUAL ANNUAL VALUE INVENTORY VALUE OF
REQUIEMENTS IN Rs. PERIOD IN MATERIAL
WEEK FOR INVENTORY PERIOD

1 BOARD LOCAL MARKET 3780000.00 2 WEEKS 145384.62

2 PLY LOCAL MARKET 20160000.00 2 WEEKS 775384.62
3 WOOD LOCAL MARKET 2340000.00 2 WEEKS 90000.00
4 NAILS / SCREW / NUT BOLTS LOCAL MARKET 240000.00 2 WEEKS 9230.77
5 ADHESIVES LOCAL MARKET 480000.00 2 WEEKS 18461.54
6 GLASS LOCAL MARKET 720000.00 2 WEEKS 27692.31
7 LAMINATES / VINEER LOCAL MARKET 2400000.00 2 WEEKS 92307.69
8 IRON RODS / SHEETS LOCAL MARKET 600000.00 2 WEEKS 23076.92
9 PAINT & POLISH MATERIALS LOCAL MARKET 3600000.00 2 WEEKS 138461.54
10 ALUMINIUM LOCAL MARKET 720000.00 2 WEEKS 27692.31
11 CLOTH LOCAL MARKET 4200000.00 2 WEEKS 161538.46
12 STAINLESS STEEL SHEETS LOCAL MARKET 4800000.00 2 WEEKS 184615.38
13 SPRINGS ( DIFFERENT SIZES ) LOCAL MARKET 720000.00 2 WEEKS 27692.31
14 COTTON / POLYFIL LOCAL MARKET 1200000.00 2 WEEKS 46153.85
15 FOAM LOCAL MARKET 1800000.00 2 WEEKS 69230.77
16 CUSHIONS LOCAL MARKET 390000.00 2 WEEKS 15000.00
17 JUTE / NIWAD / CANVAS ETC. LOCAL MARKET 1680000.00 2 WEEKS 64615.38
18 ADHESIVES LOCAL MARKET 660000.00 2 WEEKS 25384.62
19 NAILS / SCREW / NUT BOLTS LOCAL MARKET 360000.00 2 WEEKS 13846.15
20 PAINT & POLISH MATERIALS LOCAL MARKET 3600000.00 2 WEEKS 138461.54
21 COPPER STRIPS LOCAL MARKET 720000.00 2 WEEKS 27692.31
22 COPPER SHEETS LOCAL MARKET 3120000.00 2 WEEKS 120000.00
23 SUNMICA LOCAL MARKET 240000.00 2 WEEKS 9230.77
24 ANGLES LOCAL MARKET 200000.00 2 WEEKS 7692.31
25 RUBBER FOAM ETC. LOCAL MARKET 480000.00 2 WEEKS 18461.54
26 CHANNELS & TUBES LOCAL MARKET 200000.00 2 WEEKS 7692.31
27 PAINT & POLISH MATERIALS LOCAL MARKET 400000.00 2 WEEKS 15384.62
28 OTHER CONSUMABLES LOCAL MARKET 80000.00 2 WEEKS 3076.92
 TOTAL 59890000.00 2303461.54
SAY 2400000.00
3 MANPOWER REQUIREMENTS

S.NO DUTIES ADMINSTRATION TECHNICAL TOTAL AVERAGE ANNUAL

NO. NO. SALARY WAGES

1 MANAGER 1 2 3 6500.00 234000.00

2 SUPERVISORY 0 2 2 4500.00 108000.00
3 SKILLED 0 50 50 4400.00 2640000.00
4 SEMI SKILLED 0 3 3 3600.00 129600.00
5 UNSKILLED 0 2 2 2800.00 67200.00

TOTALS 1 59 60 21800.00 3178800.00

ADD : BENEFITS @ 33 % OF TOTAL 1049004.00

GRAND SALARY WITH BENEFITS 4227804.00

5 COMPUTATION OF WORKING CAPITAL REQUIREMENTS

(A) Raw materials and consumables based on inventory period Rs 2400000.00

(B) Monthly salary and wages Rs 352317.00
(C) Monthly Power bill Rs 35000.00
(D) Half Yearly insurance premium Rs 40000.00
(E) Monthly Repairs and Maintenance Rs 25000.00
(F) Monthly administrative exp including overheads Rs 35000.00
(G) Monthly Misc. and other expenses Rs 22000.00

TOTAL Rs 2909317.00

6 DETAILS OF MISCELLANEOUS FIXED ASSETS

(A) Funiture and fixtures Rs 50000.00

(B) Vehicles Rs 100000.00
(C) Equipment of testing and quality control Rs 60000.00
(D) Generator for Rs 80000.00
(E) Miscellaneous Rs 25000.00
TOTAL Rs 315000.00

7 CAPITAL COST OF THE PROJECT

(A) Land including conveyance charges etc. Rs. 400000.00

(B) Building including all the civil works Rs. 2000000.00
(C) Installed value of plan and machinery Rs. 1770000.00
(D) Misc. Fixed Assets Rs. 315000.00
(E) Security deposit and estimate for utilities Rs. 15000.00
(F) Preliminary and pre operative expenses Rs. 5000.00
(G) Others Rs. 5000.00
TOTAL Rs. 4510000.00

8 TOTAL COST OF THE PROJECT

(A) Capital cost Rs. 4510000.00
(B) Working Capital Rs. 2909317.00

TOTAL Rs. 7419317.00

9 MEANS OF FINANCING

(A) Promoter(s) Rs. 5000000.00

(B) Long term loan (FROM BANK) Rs. 2000000.00
(C) Shotr term loan (SHORT TERM BANK & RELETIVES) Rs. 500000.00

TOTAL Rs. 7500000.00

10 ANNUAL COST OF PRODUCTION

(A) Raw materials and consuables Rs. 59890000.00
(B) Utilities Rs. 300000.00
(C) Salary and wages including Benefits Rs. 4227804.00
(D) Repairs and maintenance Rs. 300000.00
(E) Administrative and sales overheads Rs. 180000.00
(F) Interest on long term loan Rs. 280000.00
 (G) Interest on short term loan Rs. 70000.00
(H) Annual insurance premium Rs. 30000.00
(I) Depreciation Rs. 442500.00
TOTAL Rs. 65720304.00

COST PER UNIT FOR MANUFACTURING 6000 SETS OF WOODEN FURNITURE, STEEL BINS, MODULAR WORK STATIONS, CHAIRS ETC

UNIT COST OF PRODUCTION = Total of Annual Cost of Production = 10953.38

Number of units

11 Profitability

(A) Annual Sales revenue Rs. 72800000.00

(B) Annual Expenditure Rs. 65720304.00
(C) Profit before tax Rs. 7079696.00
(D) Tax Rs. 1769924.00
(E) Profit after tax Rs. 5309772.00