UPDATED PROJECT PROFILE

Cold Storage Unit

1.

PRODUCT CODE

Nil

2.

MONTH AND YEAR OF UPDATED

MARCH, 2012

3.

PREPARED BY

MSME Development Institute (Mechanical Division) CGO Complex, C Block, Seminary Hills, NAGPUR-440 006. Ph. 2510046, 2510352. Telefax: 0712-2511985
E-mail:dcdi-nagpur@dcmsme.gov.in

..

UPDATED PROJECT PROFILE COLD STORAGE UNIT 1. INTRODUCTION. India is the largest producer of fruits and second largest producer of vegetables in the world. In spite of that per capita availability of fruits and vegetables is quite low because of post harvest losses which account for about 25% to 30% of production. Besides, quality of a sizable quantity of produce also deteriorates by the time it reaches the consumer. This is mainly because of perishable nature of the produce which requires a cold chain arrangement to maintain the quality and extend the self-life if consumption is not meant immediately after harvest. In the absence of a cold storage and related cold chain facilities, the farmers are being forced to sell their produce immediately after harvest which results in low price realization. Sometime farmers do not even get their harvesting and transportation costs what to talk of the cost of production or profit. As a result, our production is not getting stabilized and the farmers after burning fingers in one crop switch over to another crop in the subsequent year and the vicious cycle continues. Our farmers continue to remain poor even though they take risk of cultivating high value fruits and vegetable crops year after year. A cold storage facility accessible to them will go a long way in removing the risk of distress sale to ensure better returns. This project profile endeavors to provide information on various broad technical and financial aspects of a cold storage unit to enable the financing banks and entrepreneurs in formulation and implementation such projects. 2. MARKET POTENTIAL. The estimated annual production of fruits and vegetables in the country is about 130 million tonnes. This accounts for 18% of our agricultural output. Due to diverse agro climatic conditions and better availability of package of practices, the production is gradually rising. Although, there is a vast scope for increasing the production, the lack of cold storage and cold chain facilities are becoming major bottlenecks in tapping the potential. The cold storage facilities now available are mostly for a single commodity like potato, orange, apple, grapes, flowers, etc. which results in poor capacity utilization. Present availability of cold storage capacity is only 130.5 lakh tonnes. Although 90% of these units are made to store only potato even then it does not meet the requirement of the single crop, the production of which is about 300 lakh tones per annum. 3. BASIS AND PREASSUMPTIONS. Assumptions for working out economics of a 5000 MT capacity potato cold storage 1. 70% of the capacity is rented out and rest 30% capacity is used to store potato owned by the promoter(s). 2. Rental charges per season per MT of potato are Rs. 1800/-. 3. Marketing margin on own potato considered at Rs. 6500/- per MT. 4. Electricity and other utilities expenses at Rs. 410.4/- per MT per annum. 5. Insurance charges for the potato considered as Rs. 40/- per MT per season. 6. Margin money considered at 25% of the financial outlay. 7. Interest on term loan considered at 15% per annum.

8. Even though the life of the cold storage will be much more, the life has been considered as 15 years for working out internal rate of return. 9. Depreciation rate of 5% and 9% has been considered for civil structures and plant & respectively. 4. IMPLEMENTATION SCHEDULE. 1. Provisional registration with the Director of industries (DIC) one week. 2. Site selection, Land development, Power connection, Water Connection & Construction of Building 12 months. 3. Purchasing machinery, equipments and employing personnel 02 month. 4. Installation of machinery 02 months 5. Testing installed machinery & Marketing 01 month. The proposed unit can be set up in 18 Months. 5. TECHNICAL ASPECTS. 5.1 Process of Service / Manufacturing. After harvesting potato transport it to cold storage premises then pre cool it in precooler remove damaged potatoes then pack in certain quantity like 50Kg, 100 Kg bags, number bags and store in cold storage racks. Maintain constant cooling whenever potato / products are in storage, frequent inspection of stored product is required. Transport to wholesale market whenever required. 5.2 Quality Specifications. Constant continuous cooling, security of product, perfect service is essential. 5.3 Service Capacity per Season /Annum. Quantity: 5000 MT of Potatoes Value : 1,60,50,000 Rs 5.4 Motive Power. Three phase, 75 HP (For Vapor Compression Refrigeration System) 6. TOTAL CAPITAL INVESTMENT. Sr. Description No. 1. Fixed Capital 2. Working Capital (3 times of WC/ Month) Total Cost

Value Rs. 29000000.00 752856.00 2,97,52,856.00 Say 3,00,00,000

7. MEANS OF FINANCE. 1. Promoters Contribution (25 % of Total Cost) 2. Bank Loan (Total Cost - Promoters Contribution ) 8. FINANCIAL ASPECTS. 8.1 FIXED CAPITAL. Sr. Description No. 1. Civil cost 2. Insulation cost 3. Machinery & Equipment cost 4. Miscellaneous cost

Rs. 75.00,000.00 2,25,00,000.00

Cost / MT (Rs) 3200.00 900.00 1500.00 200.00 Total Fixed Cost

Value (Rs) 16000000.00 4500000.00 75,00,000.00 10,00,000.00 2,90,00,000.00

8.2 WORKING CAPITAL. 8.2.1 Establishment Expenses per Month & Year. Designation Persons Salary (Rs / Month) Manager 1 15000.00 Supervisor 1 10000.00 Skilled worker 2 6000.00 Labors/ helpers for loading, unloading 5 3500.00 product & other related work Total Cost for Staff & Labor 34500.00

Sr. No. 1. 2. 3. 4.

Value (Rs/Year) 180,000.00 120,000.00 144,000.00 210,000.00 6,54,000.00

Sr. No. 1. 2. 3. 4. 5. 6.

8.2.2 Maintenance & Repair Expenses per Month & Year. Description Quantity M&R Expenses Value Per Month (Rs/Month) (Rs/Year) Refrigerant (NH3 ) 30 Kg 7084.00 85000.00 Lubricants 10 Lit. 2000.00 24000.00 Fuel 06 Lit. 500.00 6000.00 Preventive maintenance cost 6250.00 75000.00 Parts to Replace 6250.00 75000.00 Repairing expenses 4167.00 50000.00 Total M & R Expenses 26251.00 3,15,000.00

Sr. No. 1. 2.

8.2.3 Utilities per Month & Year. Description Units Power (125 KW @ 5 ) Water 34000 Total Utilities

Bill (Rs / Month) 170000.00 1000.00 171,000.00

Value (Rs/Year) 2040000.00 12000.00 20,52,000.00

Sr. No. 1. 2. 3. 4. 5.

8.2.4 Other Expenses per Month & Year. Description Expenses (Rs / Month) Insurance charges of stored product / potato 16667.00 Postage & Stationary 500.00 Conveyance and Transport 1000.00 Advertisement & Publicity 834.00 (Stickers , pamphlets & Cards ) Other Unforeseen Expenses 200.00 Total other Expenses 19201.00 8.2.5 Total Working Capital Per Month. Description Total Establishment Expenses per Month Total Maintenance & Repair Expenses per Month Total Utility (Power & Water Expenses) per Month Total Other (Insurance, Marketing etc)Expenses Per Month Total Working Capital Per Month

Value (Rs/Year) 200000.00 6000.00 12000.00 10000.00 2400.00 230400.00

Sr. No. 1. 2. 3. 4.

Value Rs 34500.00 26251.00 171000.00 19201.00 2,50,952.00

9. COST OF PRODUCTION / SERVICE PER ANNUM. Sr. No. 1. 2. 3. Description Total Working Capital Per Annum Depreciation on Machinery & Equipment Interest on total capital investment (FC+WC) Total Cost of Servicing Per Annum Value Rs 30,11,424.00 6,75,000.00 44,62,928.00 81,49,352.00

10. TURNOVER PER YEAR. Sr. Description Quantity Rate Value No. (MT) (Rs /MT) (Rs) 1. 70 % capacity of cold storage is rented 3500 1800.00 63,00,000.00 2. 30% capacity of cold storage is used to 1500 6500.00 9750000.00 store potato owned by promoter(s) Total revenue per year 1,60,50,000.00 11. FIXED COST PER YEAR. Sr. Description No 1. Depreciation of Machinery, equipment & Insulation (At the rate 9% / Year in average) 2. Depreciation of civil structure (At the rate 5% / Year ) 3. Interest 4. 40 % of Salaries & Wages 5. 40 % of Other Expenses (Utilities + OE) Total Fixed Cost per year

Value Rs 10,80,000.00 8,00,000.00 44,62,928.00 2,61,6000.00 9,12,960.00 75,17,488.00

12. PROFIT ANALYSIS. Profit : Revenue per year-Total Cost of Servicing Per Annum : 79,00,648.00 Rs Income Tax on Profit @ 30% : 23,70,194.00 Rs Net Profit (PAT) : 55,30,453.00 Rs % of Profit on Sale : Net Profit / Sale 100 : 34.46 % % of Return on Investment : Net Profit / (FC + WC) 100 : 17.28 % 13. MACHINERY SUPPLIERS. 1. RINAC INDIA Ltd., No.5, Saraswati Niwas,Main Channal Road, Saraswathipuram Ulsoor, Banglore-560008 (Karnataka) PH- 080-41132929 2. AIRTECH ENGINEERS, B-93, Okhala Industrial Area, Phase II, New Delhi -110020, PH- 011-26385711 3. NEER ENTERPRISES, 232/2,Mangal Nagar, Opp. Saraswati Vidya Mandir, Near Shastri Nagar, N.H. No. 8 Rakhial, Ahmedabad-380023, Gujarat, India. Phone : +91-79-22910062, 22910326 Fax : +91-79-22910393 E-Mail: info@neerenterprises.com Ctd...

14. DOS AND DON'TS

Dos 1 Suitability of site with proper elevation, drainage and linkages by road and other communications must be ensured. Land should be converted to non agricultural category. Don'ts Site in a low lying area with poor road and other communication linkages must be avoided. Agricultural land should not be used for construction of cold storage without converting it to non agricultural category. Do not avoid soil load bearing test and proper rack design. Don't avoid taking permissions from local authorities for constructions. Don't select the capacity of the cold storage arbitrarily. Costly and energy intensive technology should be avoided. Plant operation for more than 12 hours a day should be avoided. Proper pressure testing and vacuum testing of the refrigeration system should not be over looked. Don't use hard water without softening it. Untrained and inexperienced personnel should be avoided for critical plant operations. Standby provisions for critical equipment should not be avoided to save on cost. Don't compromise on DG set to ensure assured power supply.

Soil should be tested for its load bearing strength and matching rack design should be adopted. Necessary permission from local authorities for construction of cold storage should be obtained. Capacity of the plant and its room temperature should be matched to the product to be stored and market size. Selection of technology and machinery should be for power efficiency, low investment and maintenance cost. Plant operation may be planned in a manner to not exceed an average 12 hours operation a day. Refrigeration system should be properly pressure tested and vacuum tested for safety. Soft water should be used for plant operation. Trained personnel should be employed for operating the plant and maintaining desired room conditions. Proper standby equipment like compressor with motor and water circulation pump should be provided. Assured electricity supply matching to the electrical power requirement should be provided. In case of power failures, the supply should be ensured by DG set matching to the essential power requirement of the unit. Proper safety provisions like fire extinguishers and safety alarms should be provided. Proper insurance cover should be taken for building, plant and machinery and stored stocks to take care of unforeseen risk.

9 10

11

12

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Don't compromise on safety aspects for risk free operation of the unit. Don't avoid insurance cover to save on operational costs.

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UPDATED PROJECT PROFILE

Explosive Van Body Building

1.

PRODUCT CODE

Nil

2.

QUALITY & STANDARDS :

The quality specification of the Explosive van depends upon Explosives Rules of Department of Explosives, Govt. of India and RTO.

3.

MONTH AND YEAR OF UPDATED

MARCH, 2012

5.

PREPARED BY

MSME Development Institute (Mechanical Division) CGO Complex, C Block, Seminary Hills, NAGPUR-440 006. Ph. 2510046, 2510352. Telefax: 0712-2511985
E-mail:dcdi-nagpur@dcmsme.gov.in

..

UPDATED PROJECT PROFILE

Explosive Van Body Building

1.

Introduction:
Explosive van carries explosives , which were mounted on different vehicles chassis such as on Ashok layland, TATA or Swaraj Mazda. These van are having different carrying capacity such as 1 MT, 3 MT, 5MT, 10 MT & 15 MT. These are fabricated as per Govt. of India, Department of Explosive rules. This project profile is prepared for caring Class-2 type of explosive.

Explosive Rules, 1983 Explosives Rules deal with condensed explosives like high explosives (dynamite, detonators etc. ) fireworks, low explosives ( safety fuse etc. ) The type of explosives have been catogarised as category X,Y, Z, and ZZ and for various purposes, either licence or approval is required. Licence is required for manufacture, storage, ( possession ) for sale and/or use, transport, import, export of explosives, display of fireworks or for special purpose not covered in the Rules. The details regarding Shot Firers permit have been stated in Licensed Premises. Approval is required for manufacture of portable Magazine, Explosives Carrying Boxes, Authorisation of Explosives, Issue of Foreman Certificate, Acetylene Generator and BMD system. Form no Form 26 Purpose To Transport Explosive Licensing Authority Controller of Explosives

2.

Market Potential:

There are numbers of ordnance factories, Explosives manufacturing units fire crackers manufacturing units. The explosives vans are essential explosive material handling vehicles for transportation of explosives from one destination to other. Most of the units they hire the vans for transport. Therefore the market potential of explosive van body building and repair is highly demanded.

3. i) ii) iii)

Pre assumptions:
Interest on fixed capital and working capital has been calculated at an average rate of 15% per annum. The present schemes have been worked out on single shift working of 8 hours per day at a 80% of efficiency and 300 working days in an year. The rate in respect of machinery equipments cost of land and building, raw materials are as per prevailing market rates at the time of preparation of this project profile and are likely to vary quality wise and capacity wise from supplier to supplier and place to place. Arrangements of labour wages has been made as per the prevailing market rates which may vary from place to place. The unit can function in rented premises as the manufacturing activity does not involve any special constructional features for the premises. Fabrication of Explosive van of capacity 10 MT to carry only class-2 Explosives is considered for project profile preparation.

iv) v) vi)

4.

Implementation Schedule:
Every project requires some specific time for commercial are briefly as under. Selection of product and procurement of technical Know-how Selection of industrial site Provisional registration Preparation of project report (a) Calling quotations (b) Preparation of reports Application for finance and getting loan sanctioned Recruitment of man-power Procurement, installation & electrification of machineries Trial run production and 6 weeks 2 weeks 1 week 4 weeks 2 weeks 10 weeks 2 weeks 8 weeks 1 week

In between the financial exercise and installation of machinery, labour requirement and other miscellaneous work will be completed for manufacturing the product.

5.

Technical Aspects:

Class 2 Explosive Nitrate Mixture Class Nitrate-mixture means any preparation, other than gunpowder which is formed by the mechanical mixture of a nitrate with any form of carbon or with any carbonaceous substance not possessed of explosives properties, whether Sulphur be or be not added to such preparation, and whether such preparation be or be not mechanically mixed with any other non-explosive substance, and includes any explosive containing a perchlorate and not being a chlorate-mixture, fulminate or nitro-compound as defined in this Schedule. 9

(a)
i)

MANUFACTURING PROCESS:

The following point must be noted while body building of Explosive van: 1. Disconnect all connection of battery and alternator before electric welding work on chasses / body. 2. Exhaust silencer is to be install in between front wheel & back compartment body, spark arrester is to be fitted at the end of silencer. For short circuit precaution earthing chain and cutout switch is to be installed. 3. There should be gap between drivers cabin and back storage compartment. 4. The inner wall of compartment is to be lined by aluminum and fabricated by brass screw.

FLOW CHART OF BODY BUILDING OF EXPLOSIVE VAN

Purchase of Raw Material like Aluminum sheet, wood, angles, pipes & hardware items

Bending of pipes cutting of wood

Welding, Riveting and fabrication

Erection & Fabrication of pipes, packing wooden planks and bolts.

Completion and painting

Sent for passing to RTO and Explosive Dept.

Delivery to customer

(b)

QUALITY CONRTOL AND STANDARDS: The fabrication of Explosives van cabin/ body construction should followed with the specification under schedule to Explosives Rule 1983.

6.

Production Capacity :
It is proposed to build body of 24 Explosives vans of capacity 10 MT per annum i.e. two vans per month

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7.

Pollution Control Measures:

The manufacturing activities of the unit do not produce any waste or effluents which may require pollution control measures.

8.

Financial Aspects:
(i) LAND AND BUILDING
Rented shed with floor area of 200 sq. mtr. Rs . 15000/- PM

(ii)
Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

MACHINERY AND EQUIPMENT:

Description Arc welding Transformer 3 phase, oil cooled TIG welding equipments 500 Amp. Portable spot welding gun Double end bench grinder 8 wheel dia. Electrical portable shear machine Universal hand shearing machine. Bending machine Hand operated Air compressor 5 HP Electric portable drilling machine Spray gun Power hacksaw machine Indigenous/ Imported Ind. -do-do-do-do-do-do-do-do-do-doQty 1 set 1 1 1 1 1 1 1 1 1 1 Sub total Electrification & installation charges @ 10% of cost of LS machinery & equipment Total cost of machinery & equipments Cost of dies, tools, handling equipment and measuring LS instruments Cost of office equipment/working table/furniture LS Pre-operative expenses (Project cost non-refundable deposits, if any) LS Total fixed Capital: Price (Rs.) 40000 60000 25000 12000 12000 6000 60000 40000 6000 5000 30000 296000 30000

50000

25000 25000 426000

11

(iii) WORKING CAPITAL (PER MONTH)

A. STAFF AND LABOUR Designation Manager Accountant Clerk cum storekeeper Welder Fitter Helpers Peon/chowkidar Perquisites @ 15% of salaries Total: No. 1 1 1 1 2 1 1 Salary 10000 6000 5000 4000 4000 3000 3000 Total (Rs.) 10000 6000 5000 4000 8000 3000 3000 5850 44850 Say 45000

Sr. No. 1. 2. 3. 4. 5. 6. 7.

B.

RAW MATERIAL (PER MONTH): Particular Ind/Imp. Ind. Qty. 400 Kgs Rate Rs 245/per Kgs Value (Rs.) 98000

Aluminum sheet 22SWG to 20 SWG 4X6=24 sq ft/ sheet. One sheet = 7 KG approx. Rolled steel angle 35X35X5 mm, 2.6 Kgs /mtr Square pipe 40X40 mm, 5mm thickness, 18 each Channel 40X40X40 mm, 5mm thickness, Brass sheet, brass screw, paint, spark arrester, cutout switches, earthing chain, wooden planks. Total:

Ind.

400 Kgs

45/- per kgs 48/- per kgs 48/- per kgs

18000

Ind.

850 kgs

40800

Ind.

100 kgs

4800

60000

Say

221600 225000

C.

UTILITIES: Power 30 HP L.S. Water L.S. Total 15000 500 --------15500 ----------

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D.

OTHER EXPENSES (PER MONTH): Rent 15000 Postage, stationery telephone etc. 1500 Insurance 1000 Transport charges 3000 Repair & maintenance 2000 Advertisement, sales expenses etc. 500 Miscellaneous expenses 2000 --------------Total: 25000 ----------------

E.

WORKING CAPITAL (PER MONTH): Working capital = = = A+B +C +D 45000+225000+15500+25000 310500/-

(iv)

TOTAL CAPITAL INVESTMENT :

Fixed Capital Pre operative expenses Working capital for 3 months Total: Rs. 426000 Rs. 25000 Rs. 931500 --------------------Rs. 13,82,500 ---------------------

(v)

FINANCIAL ANALYSIS:
1. COST OF PRODUCTION (PER YEAR): (a) (b) (c) Total recurring cost per year 37,26,000 Dep. on machinery and equip.@ 10% 42,600 Interest on total capital investment @15% 2,07,375 ----------------Total cost of production: 39,75.975

Say
2. SALES/TURNOVER (PER YEAR): Item Qty Cost of Explosive 24 van body building Total Rate (Rs.) @ 2.25 lakhs

--------------40,00,000

Value (Rs.) 5400000 5400000

In addition to explosive van body building repairing work also under taken as per availability of time & job which can be charged as per job requirement. 13

3.

NET PROFIT (per year):

Net Profit .= Sales - Cost of Production = 54,00,000 40,00,000 = 14,00,000

4. NET PROFIT RATIO: Net profit ---------- x 100 Sales 14,00,000 -------------- x 100

25.92 %

5400000
5. RATE OF RETURN: Net profit ----------------------- x 100 Total investment 14,00,000 ------------------ x 100 40,00,000

35%

6.

BREAK EVEN ANALYSIS: Fixed cost 1 Depreciation on machinery & eqpt 2 3 4 5 6 Insurance Interest on total investment 40% of annual salary and wages 40% of utilities 40% of other contingent expenditures

42600 10000 2,07,375 2,16,000 74400 1,20,000 6,70,375

Total Fixed cost

Fixed cost BEP= ------------------------------(Fixed cost + Net profit)

x 100

670375
BEP= ------------------------- x 100 670375 + 1400000 BEP= 32.38% 14

9. Names And Addresses Of Machine Suppliers:

1. M/s. Essential Machine Tools Pvt. Ltd., 5, Nyaya Murti G. N. Vaidya road, Bank Street, P.O. Box No. 2, Behind state bank fort, Mumbai 400001. 2. M/s. Machine Tools & Equipments, 81, Narayan Dhuru Street, Mumbai 400003. M/s Machine Tools Traders, 25,Ganesh Chander Avenue, Kolkata 700 013.

3.

10. Names And Addresses Of Raw Material Suppleirs:

1. M/s. Vinayaka Metal Industries, 283, Tawkal Lay-out, Behind Sheela Complex, wadi, Nagpur- 440023 M/s. Metals & Machinery Corporation, 130, Mahalaxmi Niwas, Opp.Mayo Hospital, Central Avenue, Nagpur 440 018 M/s. B. N. Enterprises, B-107, MIDC Indl area, Butibori, Nagpur 441 108

2.

3.

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PROJECT PROFILE ALUMINIUM SEAL FOR LPG CYLINDER

Product Code : 335902006 Quality & Standards : Buyers Specifications Production capacity : 1,80,00, 000 per Annum Date of Preparation : Aug. 2011 Prepared By ; MSME Development Institute C- Block, CGO Complex, Nagpur Introduction
The Aluminium Seal is used in the LPG Cylinder as a security measure i.e. before delivery to the customers. So no body can tamper with it and use the gas partly, so as to avoid customer being cheated.

Market Potential
This type of product is required by all the manufacturers of LPG Bottles, i.e. I.O.L., HPCL. BPCL etc. The product has got increasing and steady demand as the production of LPG cylinders is increasing day by day.

Basis and Presumptions

The basis of calculation of production capacity is based on present local market rates on single shift per day and efficiency at 70% of installed capacity. The cost of machinery and equipments as indicated in this profile refer to a particular make and prices are approximate. Working Hours 8 Hrs / Day, Working Days 300 days / Year

Implementation Schedule
This project will take its time of 6 to 8 months from the date of approval. Break up of activities with expected time and schedule is given below: Sr No 1 2 3 4 5 6 Activity Market Survey and Project scheme Preparation Unit approvals and registration (EM II Filing ) Sanction of Loan and Disbursement Placement of Order and Procurement of machines Installation of machines and power connection Trial run and Commencement of production Period 1 Month 1 Month 2 Months 2 Months 1 Month 1 Month

Few activities can start simultaneously.

TECHNICAL ASPECTS Process of Manufacture

Aluminium (Al) Sheets (0.2/0.3 mm or 36 SWG) of size 20" 30" cut from the continuous coil, will be used as the raw material. The above raw material will be fed into high speed power press for blanking and drawing. After the operation of power press, the material will be

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processed in the knotching press for keeping gap. Finally, the trimming operation is done, for removal of extra material and polishing, the seals are polished in the polishing barrel. The finished Al-sheets are inspected, properly packed and despatched.

Quality Control and Standards

There is no Indian Standard Specification for this item. All the parameters are covered by I.O.L./H.P. Specification vide Ref. No. RD 15G 214.

FINANCIAL ASPECTS A. Fixed Capital (i) Land and Building (Rented)

Covered Area of 600 Sq.Ft. @ 10,000 Rs per Month

(ii) Machinery and Equipments

Sr No Description High Speed Power Press-10 Ton Cap. Motorised Trimming Machine Motorised Knotching Machine-Hand operated Treadle Shearing Machine Polishing Barrel Composite Tools and Dies, Work Bench etc. Installation and Electrification Charge Office Furniture Qty. 4 2 2 1 2 Rate (Rs.) 80000 35000 20000 80000 25000 Amount (In Rs.) 320000 70000 40000 80000 70000 50000 70000 150000

1 2 3 4 5 6 7 8

Total 850000 B. Working Capital (per month) (i) Staff and Labour (per month)
Sr. No. 1 2 3 4 Description Manager/Supervisor Machine Operator Skilled Worker Helper/Peon Nos 1 4 4 2 Amount (In Rs.) 10000 20000 16000 6000 52000

Total (ii) Raw Material (per month)

Raw Material Al-Sheet 0.2 mm thick in the form of roll. Qty. 3000 Kg Rate (Rs)

200 Rs / Kg

Amount (Rs) 600000

Total 600000 (iii) Other Contingent Expenses (per month)

Sr No

1 2 3

Description Rent Power and Water Consumable Stores

Amount 10,000 5,000 6,000

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4 5

Packaging, Grease, Kerosene Oil etc. Office Expenses

20,000 10,000

Total 51,000 (iv) Total Working Capital (per month)

Sr No

1 2 3

Description Raw Material Staff and Labour Other Contingent Expenses

Amount 6,00,000 52,000 51,000

Total 703000 C. Total Capital Investment

Sr No

1 2

Description Machinery and Equipment Working Capital (for 3 months) 703000 3

Amount 850000 2109000

Total 2959000 Financial Analysis (1) Cost of Production (per annum)

Sr No

1 2 3

Description Recurring Expenditure Depreciation on M/c and office equipment @ 15% Interest on total capital investment @ 12%

Amount 8436000 127500 355080

Total 8918580 (2) Turn-over (per year)

Sr No

1 2

Description Sale of 180 Lac pieces of Al. seal @ Rs 0.50 each By sale of scrap @ Rs 70 per Kg. for 6000 Kgs

Amount 9000000 600000

Total 9600000 (3) Net Profit Net Profit = Turn over per year Cost of production per year
= 96 00 000 89 18 580 = 6 81 420 Rs

(4) Net Profit Ratio = ( Profit / Sales ) x 100 = ( 681420 / 9600000) x 100 = 7.10 % (5) Rate of Return = (Net Profit / Total Capital Investment) x 100 = ( 681420 / 2959000) x 100 = 23.03 %

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(6) Break-even Point

Fixed Cost Rent Interest Depreciation 40% of Salary 40% of Other Contingent Expenses Total Amount (In Rs.) 120000 355080 127500 249600 244800

1096980

B.E.P = (Fixed Cost / (Fixed cost + Profit)) x 100 = (1096980 / (1096980 + 681420)) x 100
= 61.68 %

Addresses of Machinery Suppliers

1. M/s. Batliboi and Co. 190A, Forbes Street, Fort, Mumbai-1. 2. M/s. H.P. Singh 75, Ganesh Ch. Avenue, Kolkata13. 3. M/s. Oriental Machinery Works 23, R.N. Mukherjee Road, Kolkata-13.

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