CNC Application and Design

Double Head CNC Single Head CNC Mini CNC

Major Qualification Project

M/s. SANATHANA ENTERPRISES

UNDER SCHEME
CREDITED GUARANTEE SCHEME OF CGTMSE
(SIDBI) Govt. of INDIA S.S.I Priority Sector

In Practical fulfillment of the requirements for the

Degree of visual Arts (B V A)
Animation Graphics Painting Sculpture

T B EXTENSION B M ROAD
NAGAMANGAL-571432
Dist:- MANDY
KARNATAK
 INTRUDUCTION OF PROMOTER
Sanathana Enterprises are wood carving manufacturing of and established
in started initially with manual carving for the door, windows, furniture, and
ornamental things which located at B.M, Road T.B, extension
NAGAMANGAL
Town in MANDYA District now we are established our own factory the
name of [Link].C.N.C we are manufacture and sales for all kinds of CNC
woods design machineries. It is assurance for our quality. We have well
trained technicians separate development for scanning designing and research
and development our machineries produce Designs, Spare parts and servicing
are 100% satisfaction for so many customers in around the Karnataka and
other neighbor states.
We are introduced the new S Tech CNC machine it is full fill for
carpenters design need for door carving, wall panels, wood leg design i.e
turning robe designs, hexagon, pentagon, octagon designs.
The production of machinery full automation on an cutting machine, set
pieces, liners and abnormity cutting flotation, breaking automatic working are
a whole the implementation of remote control operation from tablets to
cutting automotive control.

BACK GROUND OF PROMOTER

Mr. Thoremallanayakanahalli Narasirnlachar Harisha, aged about 30years
Residential of [Link] [Link] Nagamangala town in Mandya
District and he is the proprietor of M/s SANATHANA ENTERPRISES.
Mr. Harisha T N has passed in B.V.A Bachelor of visual arts, under
graduate in field of fine arts. The promote can choose this course to
specialize areas like Animation, Graphics, Paintings, Sculpture, Applied art,
Paint media etc. Job profile art conservator art critic, art teacher associate, art
director audio action, house photograph, studios education course. Then his
experience he intends own CNC Industries. He is 10 Years experience in this
line, no doubt this unit is run in good condition and smoothly.
 He is young and dynamic and having the strong set of confidence in
running this unit. He is having in good contact with Grow traders and
industrialist and there will be no difficulty for him to get adequate raw
materials and spare parts etc.
The promoter has taken training from Gudikaigarika and Shilpkale training
Canera Bank.
The unit is all ready registered certificates from government of India
minister of commerce of industry director general of forgone tread.
This unit is all ready register in department of sale tax. And obtained GST
certification.
The unit does not require any other license or permission and not based by
restriction.

STRENGTH
The company has successfully completed several projects with new
development being made in the field information technology. We have
computerized both our site and head office functions and we upgrade our
systems and policies in order to keep piece with the I.T revolution due to
globalization of the Indian economy and other diverse reasons the carving
machine the company strengthened and renewed strategies to face and keep
the line all latest technology.
The Group takes pride in the team of highly motivated entrepreneur and
professionally qualified technicians and various personal at all levels. The
dedication team of professional strives to adhere to company policies of
maintaining quality, safety, regulation and scheduler. We are also guided by a
bored consultant In technical managerial and financial field, we enjoy huge
credit facilities from various materials venders as well as financial intuition
and bank. We have also developed a good report with the business class and
also developed Clients.
 Background of CNC Machining
Introduction
Conventional Computer numerically controlled (CNC) machining is a
technology which has been in existence for some decades and is reaching
what appears to be an apex, much in tune to the long history of machine tool
evolution. This is important as one may realize that while it is an integral step
to the industry of tomorrow, it is the culmination which has set the
manufacturing industry in an entirely new direction. Understanding and
applying this concept as a company is as important as understanding and
applying the knowledge as a machinist. Making use of techniques and
procedures which maximize the benefit of conventional CNC machining will
add value to the machinist, and company, while ensuring that he or she is
well-desired in a competitive economy

What Is Machining?
Conventional machining is a general term which refers to the selective
removal of material from a part or work piece. The scope and evolution of
machining has broadly expanded over the past millennia, especially within
the past few hundred years since the advent of the first industrial revolution.
More recent advances in machining technology have made it possible to
replicate extremely small tolerances on a large scale and exhibit superior
finishing characteristics (Erdel, 2003). Improvements such as these can
eliminate entire steps from the machining process, thus freeing up valuable
productive time. The culmination of related technologies results in
conventional CNC machining as it is today: Complex machining centers
which are capable of sustaining extended production cycles free from human
intervention and offer maximum levels of control and feedback. With
computer automation reaching new plateaus, new industrial processes are
undergoing development every day. Conventional CNC machining is at an
arguable apex with a plethora of highly advanced cutting tools and high-
power spindles capable of speeds exceeding 50,000 revolutions per minute.

Alternatives to conventional CNC machining are presenting themselves

as time marches forth. With the unveiling of processes such as Plasma-Arc or
Electro-Chemical Erosion, the manufacturing industry finds itself with many
seeming viable options in which to create a part. These high initial
investments may leave a company uneasy in making a selection as one must
be confident that they are making a wise long-term investment which will
help ensure survivability. Due to the relative cost and versatility,
conventional CNC machining remains as a staple of industry by making it
possible to manufacture large quantities of high-quality goods at
unprecedented speed. This rapid, high-tech, production enables further
advances in virtually all other fields and results in a highly sophisticated
world which immerses much of humanity on a daily basis.
The Origins of Cutting
Cutting as a mechanical process is the removal of material resulting
through use of force, typically shear and compressive. Although “cutting” is
certainly a cutting process, grinding, milling, and drilling are also cutting
processes as they result in material removal through the application of
appropriate forces. It is important to recognize this disconnect as it separates
“conventional” machining from machining. A good example of a machining
process which does not result in cutting is rolling.
Rolling is a machining process in which material is deformed as opposed
to removed. It is possible to substitute material removal for deformation and
vice versa, though the two tend to not be interchangeable as each has its own
specific purpose along with relevant advantages and disadvantages. However,
a good machinist understands this and may choose the appropriate process in
order to maximize efficiency
The first cutting implements were fashioned from any material which may
yield a useable surface or point, typically wood and stone. Tools such as
chisels have been found and dated back to 1,500 B.C.E. in Egypt, and saws
since the early Stone Age (Michael & Fagan, ). The early emergence of these
tools is undoubtedly the result of intrinsic simplicity coupled with the
abundance of appropriate materials from which to make tools (e.g. flint).
A good example of a modern machine cutter is a punch press. Typically
used in sheet metal manufacture, a punch press is capable of rapidly cutting
semi-intricate shapes in a single motion. This is achieved through the use of a
crafted die which is applied to a work piece with high levels of force.
Assuming successful operation, the resulting contact with the cutting and
forming surfaces produces a piece which fits the dimensions of the die. This
process carries the advantages of high-speed and a low-cost of production.
The disadvantages of this process are reductions in quality control and the
limitation of the workable material thickness (hence why these operations are
best suited for sheet metal).
The Origins of Grinding

Grinding is a process in which an abrasive material is applied with force to

induce an eroding effect, commonly used during the finishing of a part.
Careful selection and application of this technique allows a machinist to
feature a part or eliminate surface flaws. Grinding thus finds a few niches
throughout the machining process in which it is of high value

In Figure 2, Ds and Vs are the diameter and velocity of the wheel,

respectively. Vw is the velocity of the work piece, “a” is the desired thickness
of material removed, and hmax is the maximum thickness removed at any
one time in the grinding process. The grinding that takes place between
a metal file and a work piece is the same as that found between particle-
laden winds and a canyon. A large number of individual cutting surfaces are
applied with consistent force to remove relatively small portions of material
at a high frequency. This tends to exhibit features more reminiscent of
eroding, though grinding may also be used as a means of cutting through
more difficult materials.
The Origins of Turning
Turning is a process in which the selected material or work-piece is
secured at one or both ends and rotated at a high speed. A cutting tool is then
introduced so that material is removed in a helical pattern. First appearing
around 1300 B.C.E., the ancient Egyptians performed a crude process which
replicates the action of a dedicated lathe. One person would use a rope to turn
the material (typically wood) while the other would use a cutting tool with
their hands. This process is improved upon by the Romans by utilizing a
simple bow, but remains mostly reserved for woodworking and pottery until
the Industrial Age enables practical metalworking

Somewhat similar to a mill, a lathe turns the work piece as a cutting tool is
introduced. A lathe enables one to produce a part with rotational symmetry,
or even perform complex helical cutting operations. Examples of these
products include baseball bats and worm gears, both of which would be
extremely complicated or impossible on a mill. Thus, lathes hold a dedicated
position in any machine shop and may even be responsible for the creation of
the first true mills.
The Origins of Milling

Mills are machines which are similar in appearance and style to the drill
press but differ in function and use. In addition to cutting surfaces on the
bottom of a mill bit, the sides are utilized as well. This greatly expands not
only the functionality of milling, but also greatly reduces the need for
extremely large inventories consisting of cutting tools which may rarely see
use. Modern mills employ a variation of cutting tools, such as face, end and
ball-mills. Utilizing tools such as these allows for operations such as slot
cutting, planning, drilling, contouring, and die-sinking (though more exist).
This broad range of use allows a skilled machinist to tackle many of the
machining tasks commonly encountered. Mills have not always been this
versatile, however, and may have in fact begun with rotary filing.
Rotary filing is a process in which a specialized file is rotated against the
surface of a work-piece. Much like a bastardization of grinding and milling,
rotary filing only falls short in comparison to a true mill. A rotary filer may
be produced as a dedicated machine, though the original use likely came by
means of utilizing a round-type file in a typical lathe. Reciprocating files are
similar in function, but are historically distinct as reciprocating files emerge
later in time and do not influence the development of “true mills”

The actual production of a true mill can be traced to the release of the
milling machine in 1825 and is attributed to Eli Whitney. The mill appears to
have been developed and created by more than just one person (Woodbury,
1960). Although Whitney is a well-known inventor of the time, his work is
more focused towards the American System of Engineering Credit is instead
placed with the contributions of several inventors during over a period of
time.
The Origins of Drilling

Drilling is a machining process in which holes are either created or

enlarged using a bit which is closely related to the end mill. A standard drill
bit is nothing more than a shank with a cutting bit which, when turned,
creates a cylindrical profile. Many bits are created using a fluted design
which greatly aids in the removal of material chips from the work area. Also
of great influence to the bit design is the specified range of drilling depth.
While shallow holes may be drilled out with confidence, deeper holes (such
as those required for the barrels of small and large arms) require more
specialized bits capable of actions such as self-centering
The earliest known examples of drilling include the use of bows. Similar
to their application in early lathes, bows provide a convenient source of low-
technology, hand-held translational power. Though this does allow for more
efficient use of power as well as additional control, it is more suited for
smaller crafting of non-metallic goods and serves better as a predecessor to
more “industrious” technologies
Drill bits of the time were created by forming a spade at the end of a
shank. Referred to as a spoon or spade-drill, these rudimentary tools were
capable of drilling to specification, which may not be approached with other
tools. Drilling is still limited in capability, but this changed in 1863 with the
patenting of Samuel Morse`s twist drill bit.
 Non-fluted drill bits run the risk of tool-work piece interference when
certain a depth is reached. This condition is alleviated with the addition of
symmetrical flutes which run down past the shank of the drill bit. This allows
for chips to travel up and out of the bit in a fashion reminiscent of an
Archimedes water screw. The fluting also allows for coolant to be circulated
throughout the cutting surfaces further aiding in chip removal and
temperature moderation.

Integration and Importance of Computer Systems

Computer Numerical Control

Numerical control makes a machine easier and more efficient to operate,
but performing the calculations and encoding the data is tedious and prone to
human error. The incorporation of computers into existing numerical control
systems was a convenient solution to these drawbacks, though the merge
occurred gradually throughout the late 1900`s. It is during these years that the
rapid miniaturization of computational technology results in small, powerful
and affordable personal computers.
Proliferation of cheap, reliable computers affects many aspects of the
manufacturing industry. As previously described, these computers and
eliminated the need for an operator to directly control the machine. It also
allows for the development of software which is capable of performing
extremely complex calculations faster than humanly possible to do by hand.
As the integration evolves, control feedback mechanisms are designed which
account for the many variances present during machining operation and
prevent full control over tolerances and finish.
Open- and Closed-Loop Machining

Open-loop and closed-loop machining represents the differences between a

machine with and without feedback and control mechanisms. An open-loop
machine is one which can send signals from the controller to the machine
tool, but receives no information in return. This typically represents a basic
system which requires human control and moderation. Closed-loop
machining processes are those which possess the ability to send signals back
from the machine tool to the controller. These signals may contain important
information about the current cutting conditions and are very useful in
making automatic adjustments during operation. These adjustments help
minimize detrimental conditions such as tool deflection or work piece slip.
The cost of closed-loop machinery is considerably more expensive than the
open-loop counterparts, but offers unparalleled process control.

Overview of the CNC Machining Process

The importance of manufacturing and having skilled manufacturers in the
United States industry has been apparent since the industrial revolution in the
1800’s. The economic change that took place when production went from
skilled craftsman to machines and factories has helped make the U.S. the
superpower nation it is today. Since the modern industrial revolution took
place in 1973 all areas of industry from technologies, politics, and the
economy have all been influenced and changed dramatically (Scott, 2008;
U.S. Department of Labor, Bureau of Labor Statistics, 2008). The skill of the
manufacturing industry is to create a quality part that meets the consumer’s
specifications for the least amount of money. The progression and advances
in manufacturing continue to decrease the cost of production and further
decrease the overall cost of goods which, in turn, affects the national
economy. Today the U.S. faces the difficult issue of overseas outsourcing
manufacturing jobs to countries like China, Thailand, and Japan in order to
save on production costs. Although this outsourcing may be useful in the
short term and temporarily boost bottom line profit, the recent disaster in
Japan show us how dangerous outside reliance can be (Scott, 2008). United
States companies are constantly looking for skilled manufacturing engineers
and machine specialists to increase their productivity and lower machining
costs.
Machining is a vital part of the over 14 million manufacturing jobs in the
United States alone. The manufacturing sector in the United States
encompasses mechanical, chemical, or physical transformations of material
into new products (Scott, 2008). Manufacturing is a continuously growing
industry accounting for about ten percent of the total employment rate since
2007. Manufacturing skills learned in this project will help us positively
contribute to the United States’ economic production accounting for about
trillion dollars in GDP in 2006 alone, and has been attributed to a gross
output of 4.5 trillion dollars in the year 2005 (Scott, 2006). Manufacturing
also exports about 64 percent of all U.S. goods each year (Houseman, 2007).
As shown in Table 1 machinists with the skills we have acquired accounted
for 305,610 jobs in 2009 comparatively shown with other jobs in the
manufacturing industry.
Individual state economies are also greatly affected by the manufacturing
industry. Table 2 provides a detailed look at the employment status in 2007
and Figure 12 shows the breakdown of GDP for each state based on the
industry.
With the right experience and skill in manufacturing and machining, one
has the opportunity to make more money, on average, than jobs in other
fields of the economy even without a college degree, as seen in Figure 12.
Having machine experience and manufacturing understanding can be
detrimental in getting and sustaining an income without a degree, and can
greatly increase your starting income with a degree. In addition to the
economic contributions of the manufacturing industry, it is also a vital
contributor in national matters. Decreasing the United States’ dependency on
imported energy like oil, and the reduction of greenhouse gas are both
directly related to the new materials developed by a vibrant manufacturing
industry (Scott, 2008).
MAN POWER REQUIREMENT:

The unit requires about No. 10 person are worker. The unit would managed
by promoter himself. The details of man power requirement salary wages are
given below.

SI NO PARTICUL NO s RATE TOTAL

ER PER PAYMENTS
25 DAYS
1 Office 02 10,000 20,000
Staff
2 Skilled 02 8,000 16,000
3 Semi 02 5,000 10,000
Skilled
4 Unskilled 02 3,000 6,000
5 Attender 01 4,000 4,000
7 Watchman 01 5,000 5,000
9 Total 10 - 61,000
10 Add - 10% 6,100
:Benefit as
11 Grand 67,100
Total Per
Month
12 Wages and 8,05,200
Salary Per
Annum
TOTAL COST OF PROJECT:
1 Land and Development Own
2 Building Civil Work 75.50
3 Plant and Machinery 111.51
4 Other Fixed Asset 1.50
5 Electrical Goods 2.50
6 Preliminary Exp 0.35
7 Contingency Exp 0.64

TOTAL 192.00

MEANS OF FINANCE:
1 Loan from Financial Assistance 100.00
@Rs. 52% Total Cost of Project
2 Promoter Contribution 92.00
@Rs. 48% Total Cost of Project
192.00
TOTAL
COST OF PRODUCTION AND PROFITABILITY

The cost of production and profitability has been worked out for a period
7 years as shown in annexure 1. The following assumption is made while
working out the cost of production and profitability.

PRODUCTION CAPACITY
1. The unit will work at 300 days per annum on single shift basis.
2. The unit has an installed capacity to produce no.60 CNC Machinery
3. The will worked 70%capacity utilisation during the first year and
produce no.42 CNC Machinery from 2nd year the unit will worked at
80% capacity utilization and produce 48 No CNC Machinery.

COST OF PRODUCTION

Rawmaterials
1. The average cost of Raw materials i.e The good quality of materials and
spare parts. Opp Required raw materials per machine is Rs 4.25 Lacks
2. The average annual Requirement of materials and spare parts, Rs. 255
Lacks Per Year on 100% utilization.
The requirement raw materials and spare parts are Imported in
Chena and Thaivan cournties.
 With Reference regarding requirement of CNC Machines

Sl MODEL S TECH 1625-Sarvo 2 Rs In Lacks

No Spindale
1 Working table 1600 X 2500*350mm 0.25
area(mm)
2 Table T-slot table b
3 Stabilizer Board 0.06
4 Spindle & Spindle 3.5Kw air cooling (ITALIAN 1.20
rotating Speed(RPM) HSD) Spindle & 0-24000
5 Electric Wirings Others Materials 0.10
6 Rails Square 20 ails 0.20
7 Inverter BEST Inverter
8 Drive system Lead shine servo drive and 1.20
motors
all axe with brake of on Z axis
9 Controller DSP A11 3-axis controller 0.20
10 Transmission X Y axis Xinyue high 0.10
precisionhelical rack and
pinion, Z axis Taiwan TBI
ball Screw
11 Motor 3 HP 0.15
12 Newest tool Newest tools measuring sensor 0.15
measuring
Sensor
13 Tool Box All the standard tools included 0.05
14 Software Artcam pro 0.12
15 Working Power 220V/3P 0.5Hp Electric 0.48
motors
Total 4.26
UTILITY :
A lump sum provision of Rs. 19500/- month has been made to cover
powercharge similarly Lump sum of Rs. 500/- has been made to cover
water charge.

LABUOR PLANT OVERHEADS :

Wages and salary are assumed to miracle at 5% per annum a provision for
benefits is made at the rate of 10%.

ADMINISTRATION OVERHEAD :
A lumpsum of Rs. 20000/- per Month has been made.

COST OF SELLING AND SALES PROMOTION :

A lumsum provision of Rs 30,000/- per Month has been made to cover the
expense transporting and also other sales promotion expenses.

REVENUE FROM RECIEPTS :

The revenue from receipt and sales of CNC Machine on current rate is
worked out an under.

SI PARTICULER 1ST YEAR 2ND YEAR

NO
1 By sales of CNC Machine 42 48
in Numbers
2 Selling Rate (Per Machine) 7.00 7.00
3 Revenue Rs. 294.00 336.00

4 Less: Discount @15% 44.10 50.40

Total 249.90 285.60
SCHEME OF FINANCE :
The promoter are opportunity the loan for the financial assistance. The
scheme would be to get a loan of Rs 100.00 Lakhs. On the collateral
security of machinery and equipment and New constriction Building
The term loan is repayable in 84 equal instalments. And term loan bears
interest the rate of 10.10% per annum calculated on monthly basis and on
National Equity funds of 1% per annum.

The Depreciation in calculated on the written down value of the following .

ASSETS :

1. Machinery 10%
2. Other assets 15%
3. Building 10%

List of Machinery
PRATICULARS AMOUNT
1) ART -165 CNC ROUTER DOUBLE HEADS 31,55,733.00

2) ART-1325 Stone CNC Router 16,83,801.00

3) Fiber Laser Cutting Machine 63,11,466.00

Total 1,11,51,000.00
 ANNEXURES - I

ESTIMATE COST OF PRODUCTION AND PROFITABILITY

Rs in Lakhs
Sl/no PARTICULARS 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29
Capacity of the plant 60.00 60.00 60.00 60.00 60.00 60.00 60.00
Utilization Capacity 70% 80% 80% 80% 80% 80% 80%
Production CNC Machine 42.00 48.00 48.00 48.00 48.00 48.00 48.00

A Raw Materials 178.50 204.00 204.00 204.00 204.00 204.00 204.00

C Utility Power and water 2.40 2.50 2.50 2.50 2.50 2.50 2.50
D Labour Plant Overhead 8.05 8.45 8.45 8.45 8.45 8.45 8.45
E Factory Administration Overhead 2.40 2.40 2.40 2.40 2.40 2.40 2.40
F Cost of Selling and Other Exp 3.60 4.60 4.60 4.60 4.60 4.60 4.60
Total Cost of
G Production(G=A+B+C+D+E+F) 194.95 221.95 221.95 221.95 221.95 221.95 221.95
H Saless 249.90 285.60 285.60 285.60 285.60 285.60 285.60
I Gross Profit Before Interest 54.95 63.65 63.65 63.65 63.65 63.65 63.65
J Interest On Lone 9.35 8.10 6.64 5.17 3.71 2.25 0.79
K Deprication 19.45 17.51 15.67 14.12 12.68 11.39 10.23
L Operating Profit 26.15 38.04 41.34 44.36 47.26 50.01 52.63
M Preliminery Exp Writtenoff 0.25 0.25 0 0 0 0 0
N Profit Before Tax 25.90 37.79 41.34 44.36 47.26 50.01 52.63
O Provistion for Tax@30% 7.77 11.34 12.40 13.31 14.18 15.00 15.79
P Profit After Tax 18.13 26.45 28.94 31.05 33.08 35.01 36.84
Q Net Cash accruals(Q=P+K) 37.58 43.96 44.61 45.17 45.76 46.40 47.07
 ANNEXURES-II

DEPRECIATION SCHEDULE
Value
Rate of
Sl No Praticulars of
Dep
Assets
1 Bulding 10% 75.50
2 Machinery 10% 111.51
3 Others Fix Assets 15% 5.00
Total 192.00

Operating Years Bulding Machinery Fix Assets Total

2022-23 7.55 11.15 0.75 19.45
2023-24 6.79 10.03 0.69 17.51
2024-25 6.11 9.03 0.53 15.67
2025-26 5.50 8.13 0.49 14.12
2026-27 4.95 7.31 0.42 12.68
2027-28 4.46 6.58 0.35 11.39
2028-29 4.01 5.92 0.30 10.23
Total 39.37 58.15 3.53 101.05

2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29

Gross Block Of Assets
Gross Assets 192.0 172.6 155.1 139.4 125.3 112.58 101.2
Less: Depreciation 19.45 17.51 15.67 14.12 12.68 11.39 10.23
Net Block Of Assets 172.56 155.1 139.4 125.3 112.6 101.19 90.96
 REPAYMENT OF BANKS TERM LOAN & INTEREST

Loan Amount 100.00 Lakhs

Rate of Interest Rs 10.10%

Repayment Period 7 Years

Operating Opening Closing

Repayment Interest
Years Balance Balance
2022-23 100.00 7.72 92.28 9.35
2023-24 92.28 15.38 76.90 8.10
2024-25 76.90 15.38 61.52 6.64
2025-26 61.52 15.38 46.14 5.17
2026-27 46.14 15.38 30.76 3.71
2027-28 30.76 15.38 15.38 2.25
2028-29 15.38 15.38 0.00 0.79
Total 100.00 36.01

NOTE: Interest is calculated on the assumption that the loan

 ANNEXURES - IV
CASH FLOW STATEMENT
Rs in Lakhs
Sl No Particulars POP 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29
A) SOURCESS OF FUND
1 Opening Balance 0.00 0.00 27.86 53.94 80.67 107.71 135.10 162.86
2 Nett Cash accruals 37.58 43.96 44.61 45.17 45.76 46.40 47.07
3 Promoters Own Fund 92.00
4 Term Loan 100.00
TOTAL 192.00 37.58 71.82 98.55 125.84 153.48 181.49 209.93

B)APPLICATIONS OF FUNDS
1 Land & development Own
2 Bulding Civil Work 75.50
3 Plant & Machinery 111.51
4 Others Fixed Assets 5.00
7 Increasing of W/C
8 Loan Repayment 7.72 15.38 15.38 15.38 15.38 15.38 15.38
9 Withdrawl 2.00 2.50 2.50 2.75 3.00 3.25 3.50
TOTAL 192.00 9.72 17.88 17.88 18.13 18.38 18.63 18.88
Closing Balance 0.00 27.86 53.94 80.67 107.71 135.10 162.86 191.05
 ANNEXURES - V
DEBT SERVICE COVERAGE RATIO (D.S.C.R)
Rs in Lakhs
SL No PARTICULARS 2021-22 2022-23 2023-24 2024-25 2025-26 2027-28 2028-29
1 Net Cash Accruals 37.58 43.96 44.61 45.17 45.76 46.40 47.07
2 Interest on loan 9.35 8.10 6.64 5.17 3.71 2.25 0.79
3 Total Cash Accruals 46.93 52.06 51.25 50.34 49.47 48.65 47.86
4 Loan Repayment 7.72 15.38 15.38 15.38 15.38 15.38 15.38
5 Debt to be Serviced(2+4) 17.07 23.48 22.02 20.55 19.09 17.63 16.17
6 D.S.C.R (3/5) 2.749 2.217 2.327 2.450 2.592 2.759 2.960
7 Cummualative DSCR 2.58

(Including Marateriam period)

RETURN ON INVESTMENT

1 Cost of the project Rs. 190.00

2 Depereciation Rs. 101.05
3 Interest Rs. 36.01
4 Profit after Tax Rs. 209.50
5 Number of Years 7 Years

ROI ‗ 136.71+83.75+409.00 ‗ 1.195 ₓ100 .=17.07

90 7

Debit Equity Ratio :-1.17 :1.00

 ANNEXURES - VI

PROJECTED BALANCE SHEET

LIABLITES Rs in Lakhs
SL No PARTICULARS 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29
1 Capital 92.00 108.13 132.33 158.77 187.07 217.16 248.91
2 Add Net Profit 18.13 26.45 28.94 31.05 33.08 35.01 36.84
3 Less Drawings 2.00 2.25 2.50 2.75 3.00 3.25 3.50
4 Capital Balance 108.13 132.33 158.77 187.07 217.16 248.91 282.25
5 Term loane 92.28 76.90 61.52 46.14 30.76 15.38 0.00
Total 200.41 209.23 220.29 233.21 247.92 264.29 282.25

ASSETS
SL No PARTICULARS 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29
1 Fixed Assets 192.01 172.56 155.05 139.38 125.26 112.58 101.19
2 Less: Deprecation 19.45 17.51 15.67 14.12 12.68 11.39 10.23
3 Net Assets 172.56 155.05 139.38 125.26 112.58 101.19 90.96
4 OthersCurrent Assets -0.01 0.24 0.24 0.24 0.24 0.24 0.24
5 Deposits 0.00 0.00 0.00 0.00 0.00 0.00 0.00
6 Cash & Bank 27.86 53.94 80.67 107.71 135.10 162.86 191.05
Total 200.41 209.23 220.29 233.21 247.92 264.29 282.25
 ANNEXURES - VII
BREAKEVEN POINT
Rs in Lakhs
PARTICULARS 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29
(A)FIXED COST

Deprecation 19.45 17.51 15.67 14.12 12.68 11.39 10.23

Interest On Term Loan 9.35 8.10 6.64 5.17 3.71 2.25 0.79
Total 28.80 25.61 22.31 19.29 16.39 13.64 11.02
(B) VARIABLE COST

Cost of Matirials 178.50 204.00 204.00 204.00 204.00 204.00 204.00

Power & Water 2.40 2.50 2.60 2.70 2.80 2.90 3.00
Adminstrative Exp 2.40 2.40 2.40 2.40 2.40 2.40 2.40
Sales Promostion Exp 3.60 4.60 4.60 4.60 4.60 4.60 4.60
Salary and Wages 8.05 8.45 8.45 8.45 8.45 8.45 8.45
Total 194.95 221.95 222.05 222.15 222.25 222.35 222.45
(C) Gross Reciepts
249.9 285.6 285.6 285.6 285.6 285.6 285.6
(D) Contrubution(C-B)
54.95 63.65 63.55 63.45 63.35 63.25 63.15
B E P=(Fixed
Cost/Contrubution) 52.41 40.24 35.11 30.40 25.87 21.57 17.45
(F) Average BEP 31.86