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MACHINERY FABRICATION / ENGINEERING WORKSHOP

1. INTRODUCTION The project is for1 Manufacture of engineering spares2 Undertaking job work on lathe for turning and welding fabrication

requirements.

2. Market The market for engineering workshop has got wide scope due to fast growth ofIndustrialization, especially in the Raipur sector. Spares for industries andtheir machine parts, etc can be manufactured or repaired.Non-availability of spare parts and expensive spares is also creating problems

for various industries.So locally available solution is great market potential with promoters havingindustrial experience

3. MANUFACTURING PROCESS The manufacturing process depends upon the type of job. Generally, the jobincludes raw material, cutting, drilling, turning & facing, milling & parting off,inspection and dispatch.

4. PRODUCTION CAPACITY PER ANNUM1200 Ton

5. PROJECT COST/CAPITAL INVESTMENTS.No Description Amount Rs.1 Fixed Capital 24550100.002 Working Capital for 2 Month 1400000.003 Preliminary & Preoperative Expense 1000000.00

Total Project Cost 26950100.00

6. MEANS OF FINANCES.No Description %age Amount Rs.1 Promoter Contribution 47% 12700000.002 Subsidy/Soft Loan 19% 5000000.003 Term Loan 34% 9250100.00

Total 26950100.00

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7. FINANCIAL ASPECTSA. FIXED CAPITAL

i. Land and Buildings details attached annex-1 Rs. 18000000ii. Machinery and Equipment details attached annex-2 Rs. 6437600iii security deposits Rs 112500

TOTAL Rs 24550100

B. WORKING CAPITAL

i. Salaries & Wages (per month)S.No Description Nos. Sal/mon. Amount Rs.1 Skilled worker/Entrepreneur 14 25000 3500002 Skilled workers 4 12000 480003 Unskilled workers 6 7000 42000

Total 440000

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 Power LS 550002 Water LS 1 200

Total 56200

iv. Other Expenses (per month)S.No Description Amount Rs.1 Postage, Telephones & Stationery Expenses 60002 Transportation & Conveyance Expenses 12 5003 Consumeble Stores 2000004 Reparis and Maintenance Expenses 15000

5 Miscellaneous Expenses 10000Total 243500

v. Total Working Capital (per month)S.No Description Amount Rs.1 Salaries and Wages 4400004 Utilities 562005 Other Expenses 243500

Total 699800

8. COST OF PRODUCTION (PER ANNUM)S.No Description Amount Rs.

1 Total Working Capital 84000002 Depreciation @ 15% 15420003 Interest on term loan @ 12% 989040

Total 10931040

9. TURNOVER (PER YEAR)S.No Description Amount Rs.1 Undertaking job works like turning, 14400000

welding, sheet metal fabrication, etc

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Total 14400000

10. PROFIT ANALYSIS & RATIOS1 Net Profit Rs. 34689602 Percentage of Profit on Sales 24%

3 Percentage of Return on Investment 53%3 Break Even Point 61 %

Break even point1. Fixed cost per annum Rs.a. Depreciation on machinery & equipments @15% 965640.00

b. 40% of other expenses 97400.00c. 40% of salary & wages 176000.00e. Interest on capital investment @14% 3437014.00f. Insurance / labour policy 36,000 .00

Total= 4712054.00

Breakeven point = 57.6%