MAHARASHTRA STATE BOARD OF TECHNICAL

EDUCATION, MUMBAI
A

REPORT ON

“SMALL SCALE BUISNESS, LIGHT ENGININEERING”

SUBMITTED BY

Ms. BURHADE VAISHNAVI NARESH

1615600068
GUIDED BY

PROF. Kulkarni P.S.

DEPARTMENT OF ELECTRONICS & TELECOMMUNICATION

ENGINEERING

ASHOK INSTITUTE OF ENGINEERING AND TECHNOLOGY

POLYTECHNIC, ASHOKNAGAR, TAL- SHRIRAMPUR -413717

2017-2018

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 ASHOK INSTITUTE OF ENGINEERING AND TECHNOLOGY,
POLYTECHNICASHOKNAGAR - 413715 SHRIRAMPUR
Department of E&TC Engineering

CERTIFICATE

This is to certify that the report

“Light Engineering”
is the bonafied work carried out by
Ms. Burhade Vaishnavi Naresh
(Exam Seat No: ______; Enroll No:1615600068)
The Student of D.C.E. (E&TC Engineering)
Academic Year-2018-19
This report embodies the work carried out by the candidate in the college, towards the partial
fulfillment of D.C.E Course in E&TC Engineering by the Maharashtra Board of Technical
Education, Mumbai

Prof. Kolapkar P.K. Prof. Kadu A.R.

Head of department Principal
(Department of E&TC Engineering)

Prof. Kulkarni p.s.

Report Guidance

2
 ACKNOWLEDGEMENT
It has been a privilege for me to be associated with Prof. Kulkarni P.S my guide during
this dissertation work. I have been greatly benefited by their valuable suggestions and ideas. It is
with great pleasure that I express my deep sense of gratitude to him for their guidance, constant
encouragement, for their kindness, moral support and patience throughout this work.
Prof. Kolpkar P.k.Head of Department of E&TC Engineering, has been indeed a great source of
inspiration for all of us in the campus, so it gives me an immense pleasure in expressing my
indebtedness to her for her kindness and moral support.
At outset, I take opportunity to express my sincere gratitude to
Prof. Kadu.A.R, Principal for giving me an opportunity to pursue my studies for the present
work.
I am heartily thankful to all staff of E&TC Engineering Department from Ashok
Polytechnic, Ashoknagar for giving me valuable support.
Finally, I would like to express my deep, incomparable appreciation and gratitude to my
family members for their constant spiritual support and encouragement to pursue the higher
technical education.

Date: / / 2018 Place: Ashoknagar

Enroll No. : 161560054
Exam Seat No.

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 Index

Sr.No. Content Page

1. Abstract 1

2. Chapter 1 2

1.1 Introduction

3. Chapter 2 3

2.1 Market 3

2.2 Manufacturing 3

4. Chapter 3 6

3.1 Financial Aspects 6

5. Chapter 4

Conclusion 12

6 Chapter 5

Reference 13

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 LIGHT ENGINEERING

(NUT, BOLT, WASHER, RIVETS, etc.)

1. Abstract

A lathe is a machine tool that can be used to create that diameter by rotating a metal work
piece, so that a cutting tool can cut metal away, creating a smooth, round surface matching the
required diameter and surface finish. A drill can be used to remove metal in the shape of a
cylindrical hole. Other tools that may be used for various types of metal removal are milling
machines, saws, and grinding machines.
Due to its regular use of everyday activities, the dependence of man is increasing on the
mobile phone. This is the reason that once a person uses it, man gets used to it, and when his
mobile phone is Damaged or lost due to some reason, then the person has to either fix the mobile
or else Purchase a new mobile device. This is the situation that has the ability to bring huge
earning opportunity for the mobile shop business in India.

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 Chapter 1

1.1.Introduction

The project is envisaged for establishing a machining unit for the manufacture of simple
fastening components such as screws, bolts, nuts, washers, car clips, and rivets and so on. These
items are required by all types of industries including automobiles.

It is a machine tool that can be used to create that diameter by rotating a metal work
piece, so that a cutting tool can cut metal away, creating a smooth, round surface matching the
required diameter and surface finish. A drill can be used to remove metal in the shape of a
cylindrical hole. Other tools that may be used for various types of metal removal are milling
machines, saws, and grinding machines.

Chapter 2

2. 1 Market:

The products have a good demand in local market. Transportation industries like
bicycles, automobiles, body builders, aircrafts etc., building activities such as
construction areas, electrical industries and other heavy and light industries are the
common customers. Hence the marking of these products will not be a tough

2.2 Manufacturing Process

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 An unfinished work piece requiring machining will need to have some material
cut away to create a finished product. A finished product would be a work piece that
meets the specifications set out for that work piece by engineering drawings or
blueprints. A lathe is a machine tool that can be used to create that diameter by rotating a
metal work piece, so that a cutting tool can cut metal away, creating a smooth, round
surface matching the required diameter and surface finish. A drill can be used to remove
metal in the shape of a cylindrical hole. Other tools that may be used for various types of
metal removal are milling machines, saws, and grinding machines. Many of these same
techniques are used in woodworking. The "traditional" machining processes, such as
turning, boring, drilling, milling, broaching, sawing ,shaping, planing, reaming, and
tapping, or sometimes to grinding.

Chapter 3

3.1 FINANCIAL ASPECTS

1. Land

2. Building

3. Plant & Machinery

4.Sl.N Item Qt

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 125,000.
1 Lathe Machine 1 Rs.
00
2 Tread rolling

3 Stand Drill 1 Rs. 9,500.00

13,000.
4 Hand Grinders 2 Rs. 00
5 Hand Driller 3 R 16,000.00
s.
R
6 Hammer & Tools 6,000.00
s.
R
7 Rivette Machine 1 8,000.00
s.
R
8 Cutting 1 8,000.00
s.
R
9 Sheet Cutters 2 3,750.00
s.
R
10 Transportation, Errection, Sales Tax etc. 3,250.00
s.
R 3,00,000.
Total s. 00

4 Raw Material Required per month

Rs
1 M S 1675 kg & Rs. 55/= . 56,250.00
Rs
2 Metal Sheet 1100 kg & Rs. 33,750.00
.
Rs
3 Other items LS 10,000.00
.
Total Rs 1,62,225.0
. 0

5 Man Power per month

1 Manager Rs. 8,000.00

2 Skilled Workers Rs. 16,000.00

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 3 Helper Rs. 4,500.00

Total Rs. 28,500.00

6 Other Expenses per month

1 Power Rs. 2,000.

00
3,000.
2 Rent Rs.
00
3 Postage & Telephone Rs. 500.
00

2,500.
4 Miscellaneous expenses Rs. 00
8,000.
Total Rs. 00

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 7 Working Capital Requirement

1 Stock of Raw 30 Day Rs.

2 Raw Materials in 2 Day Rs.

3 Stock of Finished 3 Day Rs.

4 Credit Sale 10 Day Rs.

5 One Month working expenses Rs.

Total Rs.

8. Production per Month

2,25,000.
2500 Kgs of Nuts , Bolts , Washer etc @ Rs.90 / Kilo Rs.
00
9. Total Project Cost

1 Land Free hold

Rente
2 Building
d
3,00,000.0
3 Plant & Machinery Rs.
0
3,29,200.0
4 Working Capital Rs.
0
TOTAL Rs.
MEANCE OF FINANCE

1 Promoters Contribution Rs. 1,88,800.

00
2,21,000.
2 Term Loan Rs.
00
2,30,400.
3 Working Capital Loan Rs.
00
6,292,200.
TOTAL Rs. 00
11. Cost of Production and Profitability Statement for a normal year of
operation

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 1st
Year

Number of Working Days 300

Number of Shift 1

Installed Capacity 4500000.00

Capacity Utilization 60

Production 2700000.00
A. Net Sales 2700000.00

B. Cost of Production

Raw materials 1951500.00

Salaries 96000.00

Wages 246000.00

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 13 Power Charges 24000.00

Repairs and Maintenance 12000.00

Depreciation insurance 39000.00

Total 2368500.00

Gross Operating Profit 331500.00

D. Administrative and Selling Expenses

Administrative Expenses& 72000.00

Selling Expenses

E. Financial Expenses

Interest on Term Loan 26831.00

Interest on Working Capital Loan 32256.00

F. Total D & E 131087.00

G. Net Profit 200413.00

H. Provision for taxes 4041.00

I. Net profit 196372.00

 J. Withdrawals 0.00

K. Depreciation 36000.00

L. Cash Surplus 232372.00

12. Break- Even Point 42.37%

13. DSCR 3.1

14.Return on Investment 31%

Chapter 4

Conclusions

Starting a small business is complex, time consuming and life altering. There are many
more things that go into running it than just providing the product(s) or service(s) that your
business offers. You’ll also be responsible for your business’s finances, protecting your business
and personal assets, keeping your business legal, paying taxes, keeping records, managing

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employees and more.

If you understand what you’re doing and know how to minimize the risks and challenges,
the independence, personal satisfaction and financial rewards you can achieve as an entrepreneur
mean that starting a small business could be the best decision you’ll ever make.

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 Chapter 5

References :
1. www.google.com/ Light engineering business in India

2. www.wikipedia.org

3. www.studychacha.edu/abs/100 ideas of start up.

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