PROJECT REPORT ON

PRINTING PRESS

PREPARED BY:- Kriti Kaushik

2ND FLOOR, A 17, SOUTH EXTN PART 1, NEW DELHI,South Delhi, Delhi, 110049
1. INTRODUCTION:-
Offset Printing of New paper is the latest method of printing system in any
language. The method of printing in earlier days was by rotary printing press in
which the matter to be printed was to be first composed manually. In Offset
printing, the matter which is to be printed is fed into the computer and after that
with the help of the camera, it is exposed and film is prepared through
developer/chemicals and put into Offset printing Machine to take out the print.
Offset printing method is the latest one where the quality of printing is very fine
in comparison to the previous method.

2. 2.1 MARKET POTENTIAL:-

Today is the age of technology. Offset Printing Press is the example of new
technology. The required material may be printed in minimum time with good
accuracy and better quality. Now a days, the number of schools, colleges, offices
and other business activities is increasing day by day. They require stationery,
books and other printed materials. Therefore, Offset Printing Press has very good
scope, particularly in Urban and semi–Urban areas.

2.2 BASIS AND PRESUMPTIONS

i) This report is worked out on the basis of 75% capacity utilization on Single Shift
and 300 working days per annum. ii) The machinery and equipment are of
standard make. iii) The cost of raw materials and other expenditure is
approximate and based on current market rates. iv) The period for achieving
envisaged capacity utilization is estimated to be one year after commencement
of production. v) Interest rate for fixed and working capital has been calculated
@ 16% per annum. vi) Payback period would commence after 12 months and
the repayment period is estimated at 3 years.

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2.3 IMPLEMENTATION SCHEDULE
1. The entrepreneur has to arrive at a decision in order to select this product. The
guiding factor in this regard would be the market potential, demand and supply
gap and availability of resources. It may take 2 to 3 weeks’ time.

2. After selecting the product, the entrepreneur has to get provisional registration
from DIC, so that he can apply for allotment of land, power, etc., for which about
one week time is required.

3. In order to obtain financial assistance from the financial Institutions, like

Commercial Banks or State Financial Corporations, a detailed Project Report is
required to be prepared. On the basis of the report, financial institutions may take
8 to 12 weeks’ time for sanctioning and disbursing the loan. Accordingly, orders
for plant and machinery may be finalized and placed. Simultaneously, order for
purchase of raw materials is also to be finalized and recruitment of key staff is to
be done. This would require 3 to 4 weeks’ time.

2.4 TECHNICAL ASPECTS

Process of Manufacture Composing of matter which is to be printed, is done on
computer with the help of special Software’s such as Corel Draw, Photoshop, MS
Office, Page Maker, etc., Thereafter a film is produced with the help of a camera.
This film is called negative. The matter, which is to be printed is taken on this
film/negative. The negative and an aluminum plate are put into the printing down
frame/ exposer. Before starting the exposer, the presetting of timer is done in the
timer/ watch. Generally it takes approx. 200 seconds for making positive. The
time exposer is switched off automatically as soon as positive has been built up.
The image of negative is printed on the aluminum plate, which is called positive.
After that, the developer is spread on the plate followed by washing with the fresh
water. During this process, the matter gets printed on the plate automatically.
Thereafter, the aluminum plate is fitted in the offset printing press. This plate is
called P.S. Plate, when it is used for first time and thereafter it is called Y-pon
Plate. The papers are cut on Paper Cutting Machine. Then the papers are fed
one by one into Offset Printing Press. Generally the capacity of offset printing
press is 4000 impressions per hour

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3. FINANCIAL ASPECTS:-
A. Land & Building-
Particulars Amount In INR
Premium on leased Land 1000 Sq. MTR (20% Amount) 30,00,000
Registration Cost (10% of Land Premium) 10,00,000
Cost of construction (approx.) 50,00,000
Total 90,00,000

B. Machinery & Equipment’s:-

Machinery is already available to the Manufacturing Unit Rs 1,80,00,000/-

C. Working Capital Requirement (P.M.)

Personnel –
Sl. No. Particular Nos. Salary (Rs. P.M.) Amount
___________ _____ (Rs.)
a. Manager cum supervisor 01 25,000 25,000
b. Skilled Workers 10 12,500 1,25,000
c. Semi skilled workers 10 10,000 1,00,000
d. Storekeeper/Bill clerk 01 10,000 10,000
Total: 2,60,000

D. Raw Materials/Consumables –

Sl. No. Particular (Rs.)

(Per .Month )
a. Raw Material of Unit 20,00,000
b. Miscellaneous consumables 50,000
______
Total : 20,50,000

E. Other Contingent Expenses –

Sl. No. Particular (Rs. (P.M.)

a. Telephone 2000
b. Conveyance & Traveling 10,000
d. Electricity charges 20,000
e. Water Charges 2,000
f. Stationery, postage etc. 3,000

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 g. Misc. Expenses 3,000
_____
Total : 40,000
F. Total Recurring expenditure (P.M.)

Sl. Particular (Rs. (P.M.)

No. ___________
a. Personnel 2,60,000
b. Raw Materials/Consumables 20,50,000
c. Other Contingent Expenses 40,000
______
Total : 23,50,000

4. TOTAL CAPITAL INVESTMENT:- Rs 3,20,00,000/- (detail below)

A. Fixed Capital –

Land and Construction cost 90,00,000

MACHINERY 1,80,00000

B. Working Capital (For two months) –

Running Expenditure as per point No. 3F = Rs. 47,00,000

23,50,000 for two Months
Pre-operative Expenses 3,00,000
_______
Total: 50,00,000

5. COST OF OPERATING (PER ANNUM):-

1 Recurring Expenditure (23,50,000 x 12 months) 2,82,00,000

2 Depreciation on machinery & Equipment’s @15% 22,50,000
3. Interest on bank Loan @11% 22,00,000
3 Interest on Capital Investment @ 8% 4,00,000
________
Total: 3,30,50,000

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6. REVENUE EARNINGS (PER ANNUM):-

Revenue for News Paper distribution and Advertisements 3,50,00,000

Total : 3,50,00,000

7. PROFIT (PER ANNUM):-

Revenue Earned – Cost of Operating

3,50,00,000 – 3,30,50,000 = 19,50,000

8. PERCENTAGE OF PROFIT ON REVENUE

19,50,000/3,50,00,000 = 5.57%

9. PERCENTAGE OF PROFIT ON CAPITAL INVESTMENT

19,50,000/1,20,00,000 = 16.25%

10. BREAK EVEN PONTS –

Particulars Particulars Amount

SALES 3,50,00,000
Variable Raw Material 2,40,00,000
Expenses Direct Labour 50% 15,60,000
Other Expenses 50% 5,40,000
Total of Variable Expenses 2,61,00,000

Contribution 89,00,000

Fixed Expenses Direct Labour 50% 15,60,000

Depreciation 22,50,000
Other Expenses 50% 5,40,000
Interest on Bank Loan 22,00,000
Total of Fixed Expenses 65,50,000
B.E P Fixed Cost /Contribution 73.60

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11. Cash Flow and Project profit & loss A/c–

1st 2nd 3rd

Particulars
Year Year Year
SALES 350.00 403.00 464.00
COST OF PRODUCTION
Raw materials 240.00 274.77 316.36
Consumables 6.00 10.08 11.60
Wages and Salaries 31.20 34.32 37.75
TOTAL 277.20 319.16 365.71
GROSS OPERATING PROFIT 72.80 83.84 98.29
EXPENSES
Other expenses 4.80 5.28 5.81
Depreciation 22.50 19.13 16.26
Interest on bank Loan 22.00 19.80 17.82
TOTAL EXPENSES 49.30 44.21 39.88
Net operating profit 23.50 39.63 58.41
Income tax 7.05 12.37 18.22
Net profit 16.45 27.26 40.19
Add depreciation 22.50 19.13 16.26
Cash surplus 38.95 46.39 56.44

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12. Source of Fund and Projected Balance Sheet–

Particulars 1st Year 2nd Year 3rd Year

SOURCE OF FUNDS
Capital 120.00
Profit before taxation 23.50 39.63 58.41
Depreciation 22.50 19.13 16.26
Increase in bank loan 200.00 - -
Total 366.00 58.76 74.66
DEPOSITION OF FUNDS
Prelim & pre-operative Expenses 3.00 - -
Increase in capital expenditure 320.00 - -
Decrease in bank loan 10.00 10.00 10.00
Decrease in unsecured loans - - -
Interest on bank loan to bank 22.00 19.80 17.82
Taxation 7.05 12.37 18.22
Drawings - 5.00 10.00
Total 362.05 47.17 56.04
Opening balance - 3.95 18.93
Net surplus 3.95 11.59 18.62
Closing Cash balance 3.95 15.54 37.55