Project of Manufacturing of Engg Fabrication

7/30/2019 Project of Manufacturing of Engg Fabrication

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Project Report on Manufacturing of Engineering Fabrication &

Machinery Components for EOT Cranes, Valves, Pressure

Vessel, Conveyors & Rollers.

Process Flow Diagram :

The following process flow diagram is followed for the unit operations as per

sequences.

Cutting of MS/SS Plate,

Round, Rolled Section.

Bending

Grinding

Power Press

Drilling

Grinding

Lathe Machining

For Components

Machining

Assemble

Testing


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II PLANT & MACHINERY

Plant & Machinery Quantity Amount (Rs.)

Electrical Welding Set 8 no 5,40,000/

Tig & CO, Welding Machine 1 no 80,000/

Mig Welding Machine I no 1.35,000/Line Cutter 1 no 10.000/

Drilling - Machine 2 no 5O.OO0/-

Gas Cutting Set 5 no 20,000/-

Hyd. Press 70 MT Cap X 1 Mt Gap 1 no 80.000/

Grind inn M/c 1 no 4,500/

Bench Drilling M/c 1 no 22,000/

Magnetic Drilling Machine 3 No 60,000/

Hand Grinder 6 no 15,000/

Total 10.16,500/-

Heavy Duty Power Press 500 Ton capacity with motor and

Electrical accessories X 3 Mts Gap

1 no 13,50,000/-

Welding Rectifier I No 1,00.000/

Plasma (air) Cutting Machine 1 no 1,65,000/-

Plate Rolling Machine capacity up to 50 mm with MotorElectrical accessories

1no 9,00,000/-

Lathe Machine 10 Length, Free chuck and Electrical panel

board

1 No 2,10.000/

Lathe Machine 8.5 Ft Length, Free Chuck and Electricalpanel board

1No 2,10,000/-

Lathe Machine 6 Ft length, Free Chuck and Electrical

panel board

1 no 1,90,000/-

C.N.C Lathe Machine 1 no 10,00,000/-

Hydraulic Operated Surface Grinding Machine 1N0 4,00,000/-Vertical Milling Machine 1 No 3,50,000/-

Universal Milling Machine 4,50,000/-

Radial Drilling Machine 1 Capacity 1 No 2,50,000/-

Magnetic Drilling Machine 1 No 35,000/-

Bench Grinding Machine 1 No 5.000/-

Handing Grinding Machine 2 No 20,000/-

Electrical Hacksaw 12" Capacity 1 No 30,000/-

AirConipressor3HP 1 No 35,000/-

Height Gauge 12" 12,000/-

Height Gauge 24" 1 No 20,000/-

Inspection Surface Plate 1 No 1,20,0011/-

Micro Meter 0 mm to ISO mm 1 No 9,500/-Dial Indicator 1 No 4,500/-

Total 58,66,000/-

Add VAT@ 4 % against C Form 2,34,500/-

Total Proposed Machinery 61,00,500/-

Total Plant & Machinery 71,17,000/-


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7. Cost of the project : Amount

I) Land & Building : Rented

II) Plant & Machinery : Rs.71,17,000/-

III) Working Capital Requirement Rs 35,65,000/-

Total Rs. 105,82,000/-

Sources of Finance (Proposed) :

I) a) Promoter's Contribution on Fixed Capital : Rs. 10,16,500/-

b) Term Loan for Plant & Machinery (Proposed) : Rs. 61,00,500/-

II) a) Working Capital Margin @ 10 % : Rs. 3.45 Lakhs

b) Working Capital Loan (CC Loan) :Rs. 31.20 Lakhs

Total Rs. 105.82 Lakhs10 Subsidy from State Govt. on Plant & Machinery Investment @ 25%

Rs. 15,25,000/-

Calculation of Recurring Expenses

a) Cost of Manpower ( Per Month)

Particulars Number wage/Salary Amount(Rs.)

Manager 1 10,000/- 10,000/-

Skilled Worker 10 5000/- 50,000/-

Un skilled Worker 10 4500/- 45,000/-

Accountant/Sales

Personnel/Office Assistant

2 5000/- 10,000/-

Watchman / Assistant 2 4,000/- 8,000/-

Total 25 1,23,000/-

b) Utility Expenses : ( Per Month)

Electricity & water Ks. 63,000/-

( 75X25X8X.70X6.0/-)

c) Raw Materials (( Per Month)

Items Quantity Rate Amount(Rs.)

MS / SS Plate, Round & Rolled

Including Transportation & Duty.

20 MT Rs. 60/- average 12,00,000/-

Total Rs. 12,00,000/-

d) Miscellaneous other Expenses (Per Month):

Items Amount(Rs)

Rent for Sheds Y-73 & Y-76 21,665/-

Telephones/Postage/Stationery 2000/-

Repair/ Maintenance 4,000/-

Consumables 4,000/-

Transportation/Travel Charges 3,000/-

Insurance Premium/Audit Fee/Tax 3,000/-


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Packaging & Forwarding 3,000/-

Selling & Advertisement 3,000/-

Misc. Other Contingency Expenses 3,345/-

Total 47,000/-

e) Total Recurring Expenditure ( Per Month)

a) Raw Materials Rs. 12,00,000/-

b) Manpower Rs. 1,23,000/-

c) Utility Rs. 63,000/-

d ) Misc Other Expenses Rs. 47,000/-

Total Rs. 14,33,000/-

V) Working Capital Assessment: ( at 70% Capacity Utilization)-

Particulars Requirement (

Rs. In Lakhs)of working

capitals

Working

capitalCycle

Working

CapitalMargin @

10%

Amount of

Working capitalLoan (Rs in

Lakhs)

Raw material 12.00 1 Months 1.20 10.80

Work In Progress(WIP) 7.16 2 weeks 072 6.44

Finished Goods Stock 8 96 1/2 Month 0.90 8.06

Bills Receivable 6.55 1/2 month 0.66 5.89

Total 34.05 ------ 3 45 31.20

Considerations:

Finished Goods Stock - Recurring Expenses X 1.25 ( At 25% Higher Margin)

Bills Receivable = Recurring Expenses excluding manpower expenses

Interest Calculation on Working Capital Loan :

i) Total Loan : Rs. 31.20 Lakhs

ii) Rate of Interest @ 11.00%

iii) Total Loan Interest Rs. 3 43 Lakhs

PROJECTED BREAK EVEN POINT (B.E.P.)

YEAR1 II III IV V

A VARIABLE COSTTOTAL DIRECT OFPROCESSING(80%)

A 132.80 147.45 157 87 158 28 158 2S

MANUFACTURING (ANNEX

5. K)

B GROSS RECIEPTSA/INCOME TOTAL B 209.52 224.486 239.451 239.451 239.451


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(ANNEX 5. B)C CONTRIBUTION C (B-A) 76.72 77.04 81.58 81.17 81.17

CI CONTRIBUTION @ 100% C.U. C1 109.6 102.718 101.975 101.465 101 465D FIXED COST

(i) TOTAL INDIRECT COST 29.16 31.21 3326 33 26 33.26(ii) TOTAL DEPRECIATION (W.D.V.) 9.15 7.78 6.61 5.62 4.78

(iii) INTEREST ON T.L 6.62 5.40 3.88 2.41 092

(iv) INTEREST ON W.C.LOAN 3.43 343 3.43 3.43 343

TOTAL D 48.36 47.82 47.18 44.72 42.39

BREAK EVEN POINT : D/C1 %AGE E 44.12 46.55 46.26 44.07 41.78

AVERAGE B.E.P. 44.56%

BREAK EVEN SALES 93.357 RS. LAKH PER ANNUM

AVERAGE MONTHLY SALES (B.E.P) RS. 7.78 Lakhs

CALCULATION OF RETURN ON CAPITALINVESTMENT

YEAR

I II III IV V

A RETURN ON CAPITAL EMPLOYED1 NET PROFIT AFTER TAX 17.15 17.10 20.59 22.22 24.062 Depreciation on Fixed asset added 9.15 7.78 6.61 5.62 4.7

826.30 24.88 27.20 27.84 28.84

B CAPITAL EMPLOYED

2 FIXED CAPITAL 61 54.20 40.60 27.00 26.50

3 Shared capital 12.29 12.29 12.29 12.29 12.29Total of 2*3 73.29 66.49 52.89 39.29 38.79

C RETURN ON CAPITAL EMPLOYED 35.89 37.42 51.42 70.85 74.34

D AVERAGE RETURN ONCAPITAL EMPLOYED - % AGE 53.9838

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Project of Manufacturing of Engg Fabrication