TECHNO ECONOMIC FEASIBILIY

CUM
PROJECT PROFILE
ON
Wooden and steel items

MANUFACTURING UNIT
UNDER P.M.E.G.P

1. Name of the Unit & Address : M/S OM ENTERPRISES

Add:- GULAB NAGAR

HIRAK ROAD ,BHELATAND

DHANBAD

2. Constitution : PATNERSHIP CONSURN

3. Name of the propritorship ARVIND KUMAR

S/O SIDHESHWAR SINGH

Add:- GULAB NAGAR

HIRAK ROAD ,BHELATAND

DHANBAD

4. Location of the Unit : URBAN

5. Category of the firm : (propritorship )

6. Name of the Product : wooden and steel items (Manufacturing)
7. Date of Commencement of the unit : Proposed Unit

8. Per Capita Investment over fixed

Assets : 81,818.00

9. Capacity (Qty/Valve) : Rs. 25,00,000.00

10. Total Capital Investment

Fixed Capital : Rs. 17,50,000.00

Working Capital : Rs. 7,50,000.00

11. No. of shift/ day : Single Shift of 8 hrs daily

12. No. of working days : 25 working days in a month &300

working days in a year.

13. Mobile No. : 9470984137

Introduction:- wooden and steel product has a very good response from the
market. Its demand is well understood. product bears a good response every
where. .

The viable in the open market. This is an economically viable scheme.

He will get raw materials cheaper costs from Dhanbad , Road is quite
attached with Dhanbad for Railway point of view and Kolkatta is also attached
with road.

2) Technical know how & Process:- The propritor has good experience
regarding this proposed unit.

3) Location and Infrasturucture Facilities:- Gulab nagar,Hirak road, Dhanbad

4. MARKET PROPECTS:- The manufactured items of has a very good
demand in the market. So the market proposed is high.

5. BASIC & PRESUMPTION:-

(A) The wooden and steel items will be the product.
 (b) The proprietor is a man -Person So, his own contribution will be of 10%
of the total project cost under PMEGP.

(c) As the units Loaction is a urban Based Area the margin money or the
subsidy will be of 15% of the total Project Cost.

(d) In the year (2011-12) being the 1 st year of operation, it is estimated that
only 70% of capacity utilization can take place under this project.

(e) Raw materials, etc. are available in the market and the rates are based on
the open markets.

(f) The Bank loan interests are based upon the norms and conditions of R.B.I

(g) The Labour employment is based upon fixed Assets costs of the project.
One employment (per capita employment) is Based over Rs. 1 lacs costing under
PMEGP Schems.

6. Capacity /Annually:- On doing the manufacture work of ,it is estimated Rs.

25,00,000.00 will be the annual capacity this may varies time to prevailed demand
in the market.

7) FIXED COSTS
Fixed Costs comprises of the investment upon Land, Work shed & office, plant and
machineries as well as some pre operative expenses.

a) LAND:- The promoter of the scheme has own sufficient land………NIL

b) Work shed, Office:- Work shed and office

c) (1)Civil Construction :- (As per estimate)

(i) M/c Room, Generator room 1,50,000=00

(ii) Office, Workshade etc 3,00,000=00
(iii) gate,B-WALL etc 1,00,000=00
5,50,000=00
(3) Machineries and Equipments : (As per quotation)
(Rate is given with sale tax and transpertation)
(1) Wood cutting machine With full set.
 2 no. 3,00,000.00
Iron molding,gas cutter,with full setting 1,50,000.00

(ii) Different tools with set up instruments 1,50,000.00

(iii) blocks with full set 03 No 1,50,000.00

(iv) seal machine(electronics) 02 No 1,25,000.00

(v) Generator Set (60 KVA) 1,50,000.00
(vi) Almir etc 40,000.00
(4) Other Fixed Assets :-
(i) Installation & Foundation 30,000.00
(ii) Electrification wiring 5000.00
(05)Office equipments & other fixures(Pre Operative expencess)
1,00,000.00
Total Fixed Assets = 12,00,000.00
9.) VARIABLE COSTS/ PM
(i) Raw Materials / PM

Wood,steel,knot,nail,sheet,ply wood&other requirement =1,90,000.00

per months.

ii) Salary & Wages/ PM

Manager :- 1 self = NIL

Skilled worker – 7 @ 125/- day = 21,875.00

Semi skilled worker -3 @ 100/- days=7500 .00

Total = 29375or say 29400.00

(iii) Power & utility/ per

Electricity = 3000.00 per month.

iv) Other Expenses/ per

1. rent(lease) = 3000/- per

2. Packages = 500/- per

3. Telephone/mobile= 600/- per

4. Insurance = 500/- per

5. Other Miscell = 1000/- per

6. Power from diesel through generator=3000/per

Total = 8,600.00 per

10) Total Variable Cost /PM

1. Raw Material = 1,90,000.00

2. Salary & Wages = 29,400.00

3. Other Expenses = 11,600.00

Total = 2,31,000.00

11) Working capital for 3 months

2,31,000/- x 3 = 6,93,000.00

12) Total Capital Investment

Fixed Capital = 17,50,000.00

Working Capital = 7,50,000.00

Total = 25,00,000/-

13) Means of Finance under PMEGP

1. Own Contribution @ 10% ( general/urban) = 2,40.000.00

2. Margin Money/ subsidy @ 15% (being the urbanArea)= 3,25,000.00

3. Term Loan =17,50,000.00

 4. Working Capital Loan = 7,50,000.00

14) FINANCIAL ARRANGEMENT OF BANK

2. Bank Loan = 25,00,000.00

After 3 years, margin money will be converted into subsidy till this period it is
considered as a Part of Loan for 3 years. The deprecation and other will adjust in
the year by year.

15) Working Capital Investment for a year

6,33,000/- x 12 = Rs. 83,16,000/- Annually

16) Receipt from SALE/PM

Receipt through Sale per month through different
table,almirah,palang,door,window,etc of wooden and steel items.

.=8,00,000.00

Annual Receipt = 8,00,000x 12 = Rs. 96,00,000.00

Net Profit / Annually = 96,00,000(-) 90,00,000

= 6,00,000/- Annually

17) Banking Economics

1. Bank’s Loan = Rs. 25,00,000.00

2. Margin Money = Rs. 3,25,000.00

3.Term Loan = Rs 17,50,000.00

4.cash credit = Rs 7,50,000.00

18) Interest as per RBI Rules

If taking 12% Annual rate on c.c =Rs. 90,000.00 (Annually)

If we take 13%Annual rate on term loan =Rs 2,27,500.00(Annually)

Principal Amount @ e.m.i. =Rs. 4,99,999.00 (Annually)

For 96 months or say

 =8,17,499.00 (Annually)

19) Total Net Profit/ Annually

12,84,000.00-8,17,499,000.00

Total = 4,66,500.00 (Annually)

Or Rs. 38,875/- p.m.

Hence this project is technically feasible and economically viable.