P

PROJEC
CT REP
PORT

Of

P
PRESS
SED C
COMP
PONEN
NTS
(S
Stainles
ss Stee
el Plates
s, glass
s and
spooon itemss)

P
PURPO
OSE OF THE DOCUM
D ENT

This partticular pre-fe

easibility is re
egarding Pre
essed Comp
ponents.

The obje
ective of the
e pre-feasibility report is primarily to
t facilitate potential en
ntrepreneurss in
project id
dentification for investment and in o
order to serv
ve his objecctive; the do
ocument covvers
various aspects of the projecct concept development, start-up, marketing
g, finance and
a
ment.
managem

[We can modify the project cap

pacity and prroject cost as
a per your requirement. We can also
a
prepare project
p report on any subject as per your require
ement.]

Lucknow O Office: Sidhivin

nayak Building ,
27/1/B, Gokhlley Marg, Lucknow-226001
L 1

Delhi Officce : Multi Discip

plinary Trainin
ng
Centre, Gaandhi Darshan Rajghat,
New Delhi 110002

Email : inffo@[Link]
Contact : ++91 75260003333, 444, 555
 PROJECT AT A GLANCE

1 Name of the Entreprenuer xxxxxxxxxx

2 Constitution (legal Status) xxxxxxxxxx

3 Father / Spouse Name xxxxxxxxxxxx

4 Unit Address : xxxxxxxxxxxxxxxxxxxxxxx

District : xxxxxxx
Pin: xxxxxxx State: xxxxxxxxxx
Mobile xxxxxxx

5 Product and By Product : PRESSED COMPONENTS

6 Name of the project / business activity proposed : PRESSED COMPONENTS UNIT

7 Cost of Project : Rs.20.32 Lakhs

8 Means of Finance
Term Loan Rs.12.29 Lakhs
Own Capital Rs.2.03 Lakhs
Working capital Rs.6 Lakhs

9 Debt Service Coverage Ratio : 2.29

10 Pay Back Period : 5 Years

11 Project Implementation Period : 5-6 Months

12 Break Even Point : 37%

13 Employment : 9 Persons

14 Power Requirement : 30.00 HP

15 Major Raw materials : Stainless steel cold rolled sheets 1mm-3mm

16 Estimated Annual Sales Turnover (Max Capacity) : 105.87 Lakhs

17 Detailed Cost of Project & Means of Finance

COST OF PROJECT (Rs. In Lakhs)

Particulars Amount
Land Own/Rented
Building /Shed 1500 Sq ft 5.00
Plant & Machinery 7.15
Furniture & Fixtures 1.50
Working Capital 6.67
Total 20.32

MEANS OF FINANCE
Particulars Amount
Own Contribution 2.03

Working Capital(Finance) 6.00

Term Loan 12.29

Total 20.32
 PRESSED COMPONENTS
(Stainless steel plates, Glass and spoon items)

Introduction: Stainless steel offers industry-leading durability — simply

put, the material is strong and holds its shape. It is highly resistant to impact
and structural damage, and the rigidity of the steel is preserved with a broad
temperature range (up to roughly 1400 degree Fahrenheit, at the top end).If
you purchase stainless steel, you can count on it to last for a very long time.
Replacements are generally not necessary (assuming adequate maintenance),
except where the business requires new equipment for additional
functionality. Stainless steel is resistant to corrosion, whether rust-based or
otherwise. As such, stainless steel is perfectly suitable for a wide range of
environments — it’s worth noting, however, that despite being corrosion-
resistant, there are still certain chemical environments that may pose a
problem for stainless steel equipment. Unlike other popular materials, such as
wood, grooved plastic, and various metal alloys (like aluminum), stainless
steel retains a smooth and even surface quite easily. So long as you properly
maintain the steel, there will be very few dips, crevices, and grooves that form
in the steel.

Market Potential: Stainless-Steel Cooking Utensils. Stainless-steel cooking

utensils are designed with a blend of strength and beauty. The durable metal
holds up to heat, cold and multiple uses, yet it has a shine that continues to
glow impressively even over time. Stainless steel equipment is fairly common
place, so you’re most likely not going to run into issues with finding vendors
with the requisite stainless steel equipment on sale. If you can’t think of any
reasons to go for an alternative material, it may be worth purchasing stainless
steel equipment as the ―default choice, assuming that you have sufficient
capital. India is the second largest steel producer in the world and also
approaching towards a full quality regime. The global stainless steel market
size was valued at USD 93.69 billion in 2018 and is expected to witness a
CAGR of 5.2% from 2019 to 2025. Rising demand from end-use industries
such as automotive, oil and gas, and construction is anticipated to propel the
growth.

Raw Material: The only raw material that is used is Stainless Steel Cold
Rolled Sheets – 1mm to 3mm.

Machinery Requirement: Major machines and equipments are as

follows:

S No. Name Quantity Amount

1. Hand Operated sheering Machine 1 25000
900mm
2. Spinning Lathe Centre height 350mm 1 50000
3. Electronic Weighing machine 1 25000
4. Hand fly press for light punching 1 115000
5. Double action deep drawing power 1 250000
press 100 MT with 15HP motor,
starter,etc
6. Circular cutting 1 35000
7. Annealing Plant 1 50000
8. Centre Lathe 2.5M Bed 1 60000
9. Piller Drilling machine 25mm capacity 1 15000
10. Arc Welding Transformer 300 Amps 1 25000
11. Bench Grinder 200 x 25 mm wheel size 2 15000
12. Dies and other hand tools Ls 50000
Total Amount 715000
Manufacturing Process: The process of manufacture comprises of the
following operations –
 Sheets of finally required gauge are obtained from cold rolling mills or
from the traders.
 These sheets are cut into the shapes of square blank of circles.
 These circles blank sheets are annealed before sending them for further
processing.
 Feeding circles to press / spinning.
 Pressing different items.
 Spinning operation for different items. Surface finishing.
 Storing & dispatch.

Area: The industrial setup requires space for Inventory, workshop or

manufacturing area, space for power supply utilities and auxiliary like
Generator setup. Also some of the area of building is required for office staff
facilities, documentation, office furniture, etc. Thus, the approximate total area
required for complete industrial setup is 1500 to 2000Sqft. Civil work cost
will be Rs 5 Lac (Approx.)

Power Requirement: The power consumption required to run all the

machinery could be approximated as 30 Hp

Manpower Requirement: There are requirement of skilled machine

operators to run the machine set. Experience quality engineers are required
for desired quality control. Some helpers are also required to transfer the
material from one work station to other. Office staffs are required to maintain
the documentation. The approximate manpower required is 9 including 1
Supervisor, 1 Machine Operator, 2 unskilled worker, 1 Helper and 1 Security
guard. 3 Skilled worker including Accountant, Manager and Sales person.

Bank Term Loan: Rate of Interest is assumed to be at 11%

Depreciation: Depreciation has been calculated as per the Provisions of
Income Tax Act, 1961

Approvals & Registration Requirement:

Basic registration required in this project:

 GST Registration
 Udyog Aadhar Registration (Optional)
 Choice of a Brand Name of the product and secure the name with
Trademark if require.
 NOC from State Pollution Control Board

Implementation Schedule:
S No. Activity Time required
1. Acquisition of premises 1-2 Months
2. Procurement & installation of Plant & Machinery 1-2 Months
3. Arrangement of Finance 1.5-2 Months
4. Requirement of required Manpower 1 Month
5. Commercial Trial Runs 1 Month
Total time Required (some activities shall run 5-6 Months
concurrently)

FINANCIALS
PROJECTED BALANCE SHEET

PARTICULARS I II III IV V

SOURCES OF FUND
Capital Account
Opening Balance - 2.51 5.62 8.38 11.58
Add: Additions 2.03 - - - -
Add: Net Profit 1.98 4.91 5.77 6.80 7.03
Less: Drawings 1.50 1.80 3.00 3.60 4.00
Closing Balance 2.51 5.62 8.38 11.58 14.61

CC Limit 6.00 6.00 6.00 6.00 6.00

Term Loan 10.92 8.19 5.46 2.73 - 0.00
Sundry Creditors 0.87 1.01 1.11 1.21 1.31

TOTAL : 20.30 20.81 20.95 21.52 21.92

APPLICATION OF FUND

Fixed Assets ( Gross) 13.65 13.65 13.65 13.65 13.65

Gross Dep. 1.72 3.22 4.52 5.65 6.64

Net Fixed Assets 11.93 10.43 9.13 8.00 7.01

Current Assets
Sundry Debtors 2.93 3.59 4.02 4.48 4.94
Stock in Hand 4.67 5.45 6.06 6.69 7.33
Cash and Bank 0.77 1.35 1.73 2.35 2.63

TOTAL : 20.30 20.81 20.95 21.52 21.92

- - - - -
PROJECTED PROFITABILITY STATEMENT

PARTICULARS I II III IV V

A) SALES
Gross Sale 62.84 76.86 86.23 95.90 105.87

Total (A) 62.84 76.86 86.23 95.90 105.87

B) COST OF SALES

Raw Material Consumed 37.13 43.31 47.64 51.98 56.31

Elecricity Expenses 2.05 2.28 2.51 2.74 2.97

Repair & Maintenance 2.51 3.07 3.45 3.84 4.23
Labour & Wages 9.58 10.05 11.06 12.72 14.63
Depreciation 1.72 1.50 1.30 1.13 0.99

Cost of Production 52.99 60.22 65.97 72.40 79.12

Add: Opening Stock /WIP - 2.81 3.28 3.68 4.09

Less: Closing Stock /WIP 2.81 3.28 3.68 4.09 4.52

Cost of Sales (B) 50.18 59.75 65.57 71.99 78.70

C) GROSS PROFIT (A-B) 12.66 17.11 20.66 23.91 27.17

20.15% 22.27% 23.96% 24.93% 25.66%

D) Bank Interest (Term Loan ) 1.33 1.09 0.79 0.49 0.19
ii) Interest On Working Capital 0.66 0.66 0.66 0.66 0.66
E) Salary to Staff 7.43 8.92 10.70 12.85 15.42
F) Selling & Adm Expenses Exp. 1.26 1.54 1.72 1.92 2.12

TOTAL (D+E) 10.68 12.21 13.88 15.91 18.38

H) NET PROFIT 1.98 4.91 6.79 8.00 8.79

I) Taxation 1.02 1.20 1.76

J) PROFIT (After Tax) 1.98 4.91 5.77 6.80 7.03

PROJECTED CASH FLOW STATEMENT

PARTICULARS I II III IV V

SOURCES OF FUND

Own Contribution 2.03 -

Reserve & Surplus 1.98 4.91 6.79 8.00 8.79
Depriciation & Exp. W/off 1.72 1.50 1.30 1.13 0.99
Increase In Cash Credit 6.00
Increase In Term Loan 12.29 - - - -

Increase in Creditors 0.87 0.14 0.10 0.10 0.10

TOTAL : 24.88 6.55 8.19 9.23 9.87

APPLICATION OF FUND

Increase in Fixed Assets 13.65 - - - -

Increase in Stock 4.67 0.78 0.62 0.63 0.64
Increase in Debtors 2.93 0.65 0.44 0.45 0.47
Repayment of Term Loan 1.37 2.73 2.73 2.73 2.73

Taxation - - 1.02 1.20 1.76

Drawings 1.50 1.80 3.00 3.60 4.00

TOTAL : 24.12 5.97 7.80 8.61 9.59

Opening Cash & Bank Balance - 0.77 1.35 1.73 2.35

Add : Surplus 0.77 0.58 0.39 0.62 0.28

Closing Cash & Bank Balance 0.77 1.35 1.73 2.35 2.63
COMPUTATION OF MAKING OF PRESSED COMPONENTS

Item to be Manufactured Pressed Components( Stainless steel plate, glass & spoons)

Manufacturing Capacity per day 100 Kg

No. of Working Hour 8

No of Working Days per month 25

No. of Working Day per annum 300

Total Production per Annum 30,000 Kg

Total Production per Annum 30,000 Kg
PRESSED
Year Capacity COMPONENTS
Utilisation

I 45% 13,500.00

II 50% 15,000.00
III 55% 16,500.00
IV 60% 18,000.00
V 65% 19,500.00

COMPUTATION OF RAW MATERIAL

Quantity of Total CostPer
Unit Unit Rate
Item Name Raw Material Annum (100%)
Stainless steel cold rolled sheets 1mm-3mm 30.00 MT 2,75,000.00 82,50,000.00
-

Total 82,50,000.00

Total Raw material in Rs lacs 82.50

Raw Material Consumed Capacity Amount (Rs.)

Utilisation

I 45% 37.13
II 50% 43.31 5% Increase in Cost
III 55% 47.64 5% Increase in Cost
IV 60% 51.98 5% Increase in Cost
V 65% 56.31 5% Increase in Cost
COMPUTATION OF SALE
Particulars I II III IV V

Op Stock - 675.00 750.00 825.00 900.00

Production 13,500.00 15,000.00 16,500.00 18,000.00 19,500.00

13,500.00 15,675.00 17,250.00 18,825.00 20,400.00

Less : Closing Stock(15 Days) 675.00 750.00 825.00 900.00 975.00

Net Sale 12,825.00 14,925.00 16,425.00 17,925.00 19,425.00

Sale Price per Kg 490.00 515.00 525.00 535.00 545.00

Sale (in Lacs) 62.84 76.86 86.23 95.90 105.87

COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

PARTICULARS I II III IV V

Finished Goods
(15 Days requirement) 2.81 3.28 3.68 4.09 4.52
Raw Material
(15 Days requirement) 1.86 2.17 2.38 2.60 2.82

Closing Stock 4.67 5.45 6.06 6.69 7.33

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Amount Margin(10%) Net

Amount
Stock in Hand 4.67
Less:
Sundry Creditors 0.87
Paid Stock 3.80 0.38 3.42

Sundry Debtors 2.93 0.29 2.64

Working Capital Requirement 6.06

Margin 0.67

MPBF 6.06
Working Capital Demand 6.00
BREAK UP OF LABOUR

Particulars Wages No of Total

Per Month Employees Salary
Supervisor 22,000.00 1 22,000.00
Machine Operator 16,000.00 1 16,000.00
Unskilled Worker 12,000.00 2 24,000.00
Helper 8,000.00 1 8,000.00
Security Guard 6,000.00 1 6,000.00

76,000.00
Add: 5% Fringe Benefit 3,800.00

Total Labour Cost Per Month 79,800.00

Total Labour Cost for the year ( In Rs. Lakhs) 6 9.58

BREAK UP OF SALARY

Particulars Salary No of Total

Per Month Employees Salary
Manager 25,000.00 1 25,000.00
Accountant cum store keeper 18,000.00 1 18,000.00

Sales 16,000.00 1 16,000.00

Total Salary Per Month 59,000.00

Add: 5% Fringe Benefit 2,950.00

Total Salary for the month 61,950.00

Total Salary for the year ( In Rs. Lakhs) 3 7.43

COMPUTATION OF DEPRECIATION

Plant &
Description Land Building/shed Machinery Furniture TOTAL

Rate of Depreciation 10.00% 15.00% 10.00%

Opening Balance Leased - - -
Addition - 5.00 7.15 1.50 13.65
- 5.00 7.15 1.50 13.65
- - -
TOTAL 5.00 7.15 1.50 13.65
Less : Depreciation - 0.50 1.07 0.15 1.72

WDV at end of Ist year - 4.50 6.08 1.35 11.93

Additions During The Year - - - - -
- 4.50 6.08 1.35 11.93
Less : Depreciation - 0.45 0.91 0.14 1.50

WDV at end of IInd Year - 4.05 5.17 1.22 10.43

Additions During The Year - - - - -
- 4.05 5.17 1.22 10.43
Less : Depreciation - 0.41 0.77 0.12 1.30
WDV at end of IIIrd year - 3.65 4.39 1.09 9.13
Additions During The Year - - - - -
- 3.65 4.39 1.09 9.13

Less : Depreciation - 0.36 0.66 0.11 1.13

WDV at end of IV year - 3.28 3.73 0.98 8.00

Additions During The Year - - - - -
- 3.28 3.73 0.98 8.00
Less : Depreciation - 0.33 0.56 0.10 0.99
WDV at end of Vth year - 2.95 3.17 0.89 7.01
 REPAYMENT SCHEDULE OF TERM LOAN 11.0%

Year Particulars Amount Addition Total Interest Repayment Cl Balance

I Opening Balance
Ist Quarter - 12.29 12.29 0.34 - 12.29
Iind Quarter 12.29 - 12.29 0.34 - 12.29
IIIrd Quarter 12.29 - 12.29 0.34 0.68 11.61
Ivth Quarter 11.61 - 11.61 0.32 0.68 10.92
1.33 1.37
II Opening Balance
Ist Quarter 10.92 - 10.92 0.30 0.68 10.24
Iind Quarter 10.24 - 10.24 0.28 0.68 9.56
IIIrd Quarter 9.56 - 9.56 0.26 0.68 8.88

Ivth Quarter 8.88 8.88 0.24 0.68 8.19

1.09 2.73
III Opening Balance
Ist Quarter 8.19 - 8.19 0.23 0.68 7.51

Iind Quarter 7.51 - 7.51 0.21 0.68 6.83

IIIrd Quarter 6.83 - 6.83 0.19 0.68 6.15
Ivth Quarter 6.15 6.15 0.17 0.68 5.46
0.79 2.73
IV Opening Balance
Ist Quarter 5.46 - 5.46 0.15 0.68 4.78
Iind Quarter 4.78 - 4.78 0.13 0.68 4.10

IIIrd Quarter 4.10 - 4.10 0.11 0.68 3.41

Ivth Quarter 3.41 3.41 0.09 0.68 2.73

0.49 2.73
V Opening Balance
Ist Quarter 2.73 - 2.73 0.08 0.68 2.05
Iind Quarter 2.05 - 2.05 0.06 0.68 1.37
IIIrd Quarter 1.37 - 1.37 0.04 0.68 0.68
Ivth Quarter 0.68 0.68 0.02 0.68 - 0.00
0.19 2.73

Door to Door Period 60 Months

Moratorium Period 6 Months
Repayment Period 54 Months
CALCULATION OF D.S.C.R

PARTICULARS I II III IV V

CASH ACCRUALS 3.70 6.40 7.07 7.93 8.02

Interest on Term Loan 1.33 1.09 0.79 0.49 0.19

Total 5.03 7.49 7.86 8.42 8.20

REPAYMENT
Repayment of Term Loan 1.37 2.73 2.73 2.73 2.73
Interest on Term Loan 1.33 1.09 0.79 0.49 0.19

Total 2.70 3.82 3.52 3.22 2.92

DEBT SERVICE COVERAGE RATIO 1.87 1.96 2.23 2.61 2.81

AVERAGE D.S.C.R. 2.29

COMPUTATION OF ELECTRICITY
(A) POWER CONNECTION

Total Working Hour per day Hours 8

Electric Load Required HP 30
Load Factor 0.7460
Electricity Charges per unit 7.50
Total Working Days 300
Electricity Charges 4,02,840.00

Add : Minimim Charges (@ 10%)

(B) DG set
No. of Working Days 300 days
No of Working Hours 0.3 Hour per day
Total no of Hour 90
Diesel Consumption per Hour 8
Total Consumption of Diesel 720
Cost of Diesel 65.00 Rs. /Ltr
Total cost of Diesel 0.47
Add : Lube Cost @15% 0.07
Total 0.54

Total cost of Power & Fuel at 100% 4.57

Year Capacity Amount

(in Lacs)

I 45% 2.05
II 50% 2.28
III 55% 2.51
IV 60% 2.74
V 65% 2.97
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN
assume no financial liability to anyone using the content for any purpose. All the
materials and content contained in Project report is for educational purpose and
reflect the views of the industry which are drawn from various research material
sources from internet, experts, suppliers and various other sources. The actual
cost of the project or industry will have to be taken on case to case basis
considering specific requirement of the project, capacity and type of plant and
other specific factors/cost directly related to the implementation of project. It is
intended for general guidance only and must not be considered a substitute for a
competent legal advice provided by a licensed industry professional. SAMADHAN
hereby disclaims any and all liability to any party for any direct, indirect, implied,
punitive, special, incidental or other consequential damages arising directly or
indirectly from any use of the Project Report Content, which is provided as is, and
without warranties.