NSIC

Project Profiles

GENERAL ENGINEERING WORKSHOP

1. INTRODUCTION The project is for manufacture of simple engineering spares and for undertaking job work on lathe for turning and welding requirements. 2. MARKET The market for general engineering workshop has got wide scope due to fast growth of industrialisation, especially in the service sector. Spares for authomobile parts, machine parts, etc can be manufactured. In tribal areas non-availability of spare parts is also creating problems. There is market especially in important centres.

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 despatch. Diploma in Mechanical Engineering (DME) and ITI (Turner Trade) trained persons can establish these kind of units for self-employment.

4. PRODUCTION CAPACITY PER ANNUM Undertaking job works like turning, welding, sheet metal fabrication, etc 5. PROJECT COST/CAPITAL INVESTMENT
S.No Description

Rs.

300000

Amount Rs.

1 2 3

Fixed Capital Working Capital for Preliminary & Preoperative Expns Total Project Cost

month(s)

102800 32600 10000 145400

6. MEANS OF FINANCE
S.No Description %age Amount Rs.

1 2 3

Promoter Contribution Subsidy/Soft Loan Term Loan Total

15% 20% 65%

21810 29080 94510 145400

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Project Profiles

7. FINANCIAL ASPECTS A. FIXED CAPITAL i. Land and Buildings ii. Machinery and Equipment
S.No Description Qty. Rate Amount Rs.

Rented

Rs. 2000

per month

1 2 3 4 5 6 7 8 9 10 11

Centre lathe 6 ft bend with 2 HP motor Welding transformers 150-250 amps Cap. Oil cooled 220/40V Gas welding set with accessories 1/2" Drilling machine with motor DE Bench grinder - 8" cap. Power hacksaw with 2 HP motor to cut 8" with coolant pump air compressor with spray painting equip. Testing equipment Electrification and installation Office furniture, working tables, etc Miscellaneous expenditure Total

1 1 1 1 1 1 1 LS

35000 9000 2500 4200 4000 10800 6800

35000 9000 2500 4200 4000 10800 6800 12000 6500 7000 5000 102800

B. WORKING CAPITAL i. Salaries & Wages (per month)

S.No Description Nos. Sal/mon. Amount Rs.

1 2 3

Skilled worker/Entrepreneur Skilled workers Unskilled workers Total

1 2 2

3000 2500 1500

3000 5000 3000 11000

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 2

Power Water Total

LS LS

1000 200 1200

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Project Profiles

iv. Other Expenses (per month)

S.No Description Amount Rs.

1 2 3 4 5

Postage, Telephones & Stationery Expenses Transportation & Conveyance Expenses Consumeble Stores Reparis and Maintenance Expenses Miscellaneous Expenses Total

300 500 300 500 500 2100

v. Total Working Capital (per month)

S.No Description Amount Rs.

1 2 4 5

Rent Salaries and Wages Utilities Other Expenses Total

2000 11000 1200 2100 16300

8. COST OF PRODUCTION (PER ANNUM)

S.No Description Amount Rs.

1 2 3

Total Working Capital Depreciation Interest on term loan Total

@ @

15% 12%

195600 15420 11341 222361

9. TURNOVER (PER YEAR)

S.No Description Amount Rs.

Undertaking job works like turning, welding, sheet metal fabrication, etc Total

300000 300000

10.FIXED COST (PER YEAR)

S.No Description Amount Rs.

1 2 3 4 5

Depreciation Interest Rent Salaries & Wages @ Other Expenses incl. Utilities @ Total

40% 40%

15420 11341 24000 52800 15840 119401

11.PROFIT ANALYSIS & RATIOS 1 2 3 4 Net Profit Percentage of Profit on Sales Percentage of Return on Investment Break Even Point Rs. 77639 26% 53% 61%