PROJECT PROFILE

SREE KANAKA DURGA LORRY MECHANICAL WORKS

• Name of Unit : SREE KANAKA DURGA LORRY MECHANICAL WORKS

• Product to be manufactured / : GENERAL ENGINEERING WORKS

Service to be under taken

• Name and Address of the Proprietor : UPPUTTHALA JAGAPATHI BABU, INDIRA NAGAR COLONY,

PALWANCHA

I. Introduction

M/S. SREE KANAKA DURGA LORRY MECHANICAL WORKS is a proposed Micro General Engineering and Motor vehicles
repair unit. The unit is to be installed in a rented building at Nava Bharath. The promoter, Sri. UPPUTTHALA JAGAPATHI
BABU, is experienced in Lorry and Heavy Vehicles Mechanical works and similar Repair Working Activities and has
passed Matriculation. He is confident of starting and running the unit successfully.

II. Land and Building

The unit is planned to be located in a rented building at Nava Bharath. The monthly rent will be Rs. 5,000/-.

III. Machinery & Requirements

Major machinery

[Link] Item Qty./No. Value (Rs.)

1 Vehicle Lifts 1 1,80,500

2 Air Compressor and Pneumatic Tools 1 30,000

3 Engine and Transmission Jacks 2 90,000

4 Wheel Service Equipment 4 82,000

5 Welding and Grinding 1 35,489

[Link] Item Qty./No. Value (Rs.)

1 Diagnostic Scan Tool 1 33,500

2 Alignment System 1 45,000

3 Fluid and Battery Service 2 64,000

4 Smoke Machine 1 6,000

5 Tire Pressure Monitoring System (TPMS) Tool 1 3,000

Hand and specialty tools

[Link] Item Qty./No. Value (Rs.)

1 Hand Tools 2 22,800

2 Specialty Tools 2 8,000

Other essential shop equipment

[Link] Item Qty./No. Value (Rs.)

1 Workbenches and Storage 1 30,000

2 Safety Equipment 2 10,000

IV. Total fixed capital : Rs.640289/-

V. Working Capital

(A). Raw materials required for month @ 60% operating capacity : Rs 30000/- Approx

(B). Personnel - Wages and Salaries

[Link] Designation No. Wage/Salary per month (Rs.) Total (Rs.)

1 Expert Worker 3 15,000.00 45,000.00

Total 45,000.00
(C). Utilities and Contingencies for one month

Item Value (Rs.)

1. Power charges 1,500.00

2. Rent 5,000.00

4. Travel exp / Transport 1,500.00

5. Repairs and Insurance 1,000.00

6. Telephone charges 1,000.00

8. Miscellaneous expenses 1,418.00

Total per month 11,418.00

Total Working Capital Requirement

Item Amount (Rs.)

(a) Raw materials for 1 Week 30,000.00

(b) Wages and salaries for one month 45,000.00

(c). Utilities and contingencies for one month 11,418.00

Total working capital requirement of the unit 83,418.00

VI. Total Capital

1. Fixed Capital (IV) : 640289/-

Sources Of Funds:
1. Own Capital (30.9%) : 223707/-
2. Loan From Bank (69.1% of F.C) : 500000/-
Total : 723707/-
 VII. Cost of Production Per Annum
Item Value (Rs.)
1. Total recurring expenditure:
(a) Raw materials 14,40,000/-
(b) Wages and salaries 5,40,000/-
(C). Utilities and contingencies 1,37,016/-
3. Depreciation on machinery and equipment (15%) 96043/-
5. Interest on bank loan @ 11.4% 57000/-

Total 22,70,059/-

VIII. Estimated Receipt (Turnover Per Annum)

SI No Production/Service Qty/No. Cost (Rs.) Value (Rs.)

1 Vehicle Spare parts 150 15000 22,50,000.00

2 Service (Labour Cost) 150 2,000.00 300000.00

Total : 25,50,000/-
IX. Profit & Key Financial Ratios

(a) Net Profit VIII – VII : 2550000-2270059 = Rs.2,79,941/-

Net Profit*100
(b) Net Profit Ratio : ------------------------------- = 10.9 %
Annual Turnover

Break Even Point : Fixed Cost x Operating Capacity x 100/(Sales-Variable Cost)

BEP in % : 42.0

(Net Profit+ Depreciation+Interest on Bank Loan)

Repayment period : 7 Years

Net Profit*100
X. RATE OF RETURN ON TOTAL INVESTMENT : --------------------------- = 125.13
Total Investment
XI. ABSTRACT
1. Fixed Capital : 640289
2. Working Capital : 83,418
3. Total Capital : 723707
4. Total Number of Workers : 3
5. Power Requirement : 10 Hp
6. Annual turnover : 25,50,000
7. Total direct employment : 3
8. Anticipated Profit : 2,79,941
9. BEP in % : 42.0
10. Net Profit Ratio : 10.9
11. Rate of Return on Investment : 125.13

XIII. REMARKS

Certified that the scheme is technically feasible and economically viable

Thanking you,

Regards,

Upputthala Jagapathi Babu