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DPR - Siras Engg..
DPR - Siras Engg..
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TABLE OF CONTENTS
1
PROPOSED PROJECT..................................................................................................................... 6
2.1
2.2
2.3
2.3.1
2.3.2
2.3.3
2.4
2.5
2.6
2.7
2.8
INTRODUCTION .......................................................................................................................... 1
THE PROJECT............................................................................................................................. 1
PRODUCT .................................................................................................................................. 1
LOCATION ................................................................................................................................ 1
PROJECT COST AND MEANS OF FINANCE ................................................................................. 2
KEY FACTORS OF PROJECT FOR DEBT ........................................................................................ 2
M ANAGEMENT .......................................................................................................................... 3
CAPITAL STRUCTURE .................................................................................................................. 4
NET WORTH OF PROMOTERS ...................................................................................................... 4
PROJECTED FINANCIALS ............................................................................................................ 5
SENSITIVITY ANALYSIS ................................................................................................................. 5
RAW M ATERIAL ......................................................................................................................... 6
M ARKETING ARRANGEMENTS- ................................................................................................... 6
INFRASTRUCTURE ........................................................................................................................ 6
Land and Building.......................................................................................................... 6
Water................................................................................................................................. 6
Electricity .......................................................................................................................... 7
PLANT AND M ACHINERY ........................................................................................................... 7
M ANPOWER.............................................................................................................................. 7
PROJECT IMPLEMENTATION SCHEDULE ...................................................................................... 8
M AJOR STATUTORY APPROVALS ............................................................................................... 8
INDUSTRY ANALYSIS ................................................................................................................... 8
PROFITABILITY PROJECTIONS.................................................................................................... 13
1.1
EXECUTIVE SUMMARY
Introduction
Siras Engineering Pvt. Ltd. was incorporated on 23/03/2015 vide CIN No.
U29253PN2015PTC154447. Its registered office is at Flat No. I-1104, Greens
Society, Thergaon, Chinchwad, Pune, Maharashtra with an objective to set up
an Integrated Machining Shop of Forging and Casting material.
Company promoted by following Directors.
Mr. Sadanand Nilkanth Patil
Mr. Parthasarthy Venkateshwaralu
Mr. Kaustubh Avinash Palekar
1.2
The Project
1.3
Product
1.4
Location
The proposed project site is located Plot no. 148/1-E, Next to Rinder, Om
Gurudev Industrial Estate Mahalunge, Chakan, Pune 410501.
P ag e |1
The total project cost is estimated at Rs. 285 Lakh, which is proposed to be
funded at a debt equity ratio of 60:40 with equity of Rs. 114 Lakh and Term
debt of Rs. 171 Lakh.
Project Cost
Particulars
Amount
% of Total Cost
185.00
71.15%
40.00
15.38%
5.00
1.92%
30.00
11.54%
260.00
100%
Promoter's Contribution
104.00
40%
156.00
60%
260.00
100%
TOTAL
Means of Finance
TOTAL
1.6
Project Cost
Rs 260.00 Lakh
Financing Plan
Facility
Moratorium
Repayment
7 years
Debt
P ag e |2
Management
P ag e |3
Capital Structure
Presently the authorized and paid up capital of company is 1.00 Lacs which will
be increased upto 250 Lacs the extent of projected equity before getting term
loan sanction / disbursement. The shareholding pattern of Company is as on
date, is as under:
S. No.
% of Share Holding
1.
25%
2.
25%
3.
25%
4.
25%
Total
1.9
2.
50.00 Lacs
3.
75.00 Lacs
4.
200.00 Lacs
Total
400.00 Lacs
P ag e |4
1st Year
2nd Year
3rd Year
4th Year
5th Year
6th Year
7th Year
550
577.5
606.38
636.69
668.53
701.95
737.05
41.54
49.1
56.87
64.9
73.13
81.61
90.37
33.23
38.39
42.06
46.14
50.56
55.31
60.41
6%
7%
7%
7%
8%
8%
8%
1.55
1.71
1.87
2.06
2.3
2.61
3.01
Sales
NP Ratio
DSCR
IRR
21.52%
1.11
Sensitivity Analysis
Particulars
Average DSCR
IRR
Actual
2.07
21.52%
1.18
4.09%
1.33
7.26%
P ag e |5
PROPOSED PROJECT
2.1
Raw Material
Main Raw material is the Aluminum and Cast Iron which are easily available
across:
The purchase of cast Iron will be mainly from Indo Shell Mould Ltd,
Coimbatore due to quality approval of final product.
2.2
Marketing arrangements-
Siras Engineering has made the strategic tie-up with ABB Ltd, Eton Ltd. and
Stewart Mfg for the machining job / business. The complete production
capacity will be utilized above companies, and 80% production will export.
2.3
Infrastructure
2.3.2 Water
Water requirement in the project will be very less. Total consumption for the
entire production process will 3000 Ltr/ Day.
P ag e |6
2.3.3 Electricity
The existing rented premises has MSEB approved connection, Demand of 100
KVA will be increased by MSEB before machines are installed. The rented
permises is located in Chakan area, where major OEMs are located,
government ensured uninterrupted power supply.
2.4
The Company is process to purchase the following plant and machinery from
M/s Surin Automotive Pvt. Ltd, Pune.
Machine Description
Make
Capacity
Mazak
Power
consumption
30KW
5000 hrs
Tonnage
Per Year
150
BFW
30 KW
5000 hrs
150
Mazak
18.5 KW
5000 hrs
75
BFW
18.5 KW
5000 hrs
50
BFW
18.5 KW
5000 hrs
50
Manpower
The Company proposes to recruit well-trained staff for the proposed project.
The total of 20 personnel will be required as follows for operation of plant in
direct, administration and other categories. The skilled operator must have
necessary experience and adequate qualification.
Category
Nos
Manager
Engineers
supervisors
Skilled Labour
Administrative Staf
Total
12
2
20
P ag e |7
Since Company will install all machines on readymade rented premises which
is already taken, The Installation will be completed by Oct-15 and commercial
production could be started in Nov-15.
2.7
As per the information provided by the Company, the status of major statutory
approvals required for the implementation of the project is given below:
Approval/ Consent
Agency
Status
SSI Certification
Applied
Pollution Clearance
NA
NA
Electricity
2.8
Industry Analysis
India Market
Revenue in the Machine Shop Services industry has experienced robust growth
during the five years to 2015. As the industry's major markets, including
Passenger Auto sector, Commercial Transportation manufacturing, picked up,
so did revenue. During the five years to 2020, operators will devote further
resources to satisfying growing demand from manufacturers in industries like
automobile manufacturing, commercial transport manufacturing and metal
forging.
India stands 14th in production and 10th in the consumption of machine tools
in the world as per the 2015 Gardner Business Media survey. The country is set
to become a key player in the global machine tools industry and is likely to see
substantial high-end machine tool manufacturing. With emphasis on Make in
P ag e |8
India and manufacturing growth, for which the machine tools sector serves as
the mother industry.
The Indian Machine tool Industry has around 1000 units in the production of
machine tools, accessories/attachments, subsystems and parts. Of these,
around 25 in the large scale sector account for 70 percent of the turnover and
the rest are in the SME sector of the industry. Approximately, 75 per cent of the
Indian machine tool producers are ISO certified.
Ref: Indian Machine Tool Manufacturing Association (www. imtma.in)
The industry can be segmented in several ways:
CNC
Conventional
Forming
Rs. 126 Cr
RS. 336 Cr
Cutting
Rs. 3295 Cr
Rs. 473 Cr
2014-15
Growth Rate
Production
3481
4320
22%
Exports
246
280
13%
Imports
4672
5317
14%
Consumption
7907
9358
18%
The Indian machine tools sector offers several opportunities for investment.
Given the current gap between demand and supply, there is a clear need for
adding capacities in this sector. The industry is moving towards increasingly
sophisticated CNC machines, driven by demand from key user segments, such
as, automobiles and consumer durables, Aerospace etc.
Machine tool manufacturers need to develop capabilities to cater to this
demand and investments in this area could yield long term benefits.
P ag e |9
Tax reform
Infrastructure
P a g e | 10
Type of Risk
Risk
Mitigation Measures
Category
Project Cost &
Low
Time Overrun
Raw Material
Low
Availability
Cost Risk
Low
Low
Price Risk
Medium
Funding Risk
Low
and
ready
to
bring
upfront
before
P a g e | 11
SWOT Analysis
3.2.1 Strengths:
High growth rate
High Profitability and revenue due to upgraded Technology and low
labor cost
Promoter of the company is a highly experienced and qualified person.
They also have sound financial background.
3.2.2 Weakness:
Investments in research and development
Future competition
3.2.3 Opportunities:
New acquisitions
New markets
Growing demand
3.2.4 Threats:
Only prominent threat is 3D printing technology, but these will be a
threat for shops that are specializing in 1 to 5 pcs range. Hence 3D is not
suitable for mass production.
As could, be seen from the above, the strengths and opportunities are more.
The weaknesses and threats can be surmounted by adopting appropriate
managerial strategy / business tactics.
P a g e | 12
The following Annexure listed below will provide the complete financial model
of the project:
Annexure -1
Annexure -2
Annexure -3
Annexure -4
Annexure -5
Annexure -6
Annexure -7
Annexure -8
Annexure -9
Depreciation Calculation
P a g e | 13
P a g e | 14
Annexure -1
Rs. In Lakhs.
PROJECT COST
SL No
Particulars
Amount
% of Total Cost
Land
0.00
0.00%
0.00
0.00%
2
4
5
6
7
8
Site Development
0.00
0.00%
185.00
71.15%
5.00
1.92%
40.00
0.00
15.38%
0.00%
30.00
260.00
100.00%
Promoter's Contribution
104.00
40%
260.00
100%
11.54%
MEANS OF FINANCE
1
2
156.00
60%
Annexure -2
Particulars
Total Sales
1st Year
4th Year
5th Year
6th Year
In Lacs
7th Year
550.00
577.50
606.38
636.69
668.53
701.95
737.05
330.00
346.50
363.83
382.02
401.12
421.17
442.23
Power
27.50
28.88
30.32
31.83
33.43
35.10
36.85
Cost of Production.
22.00
55.00
11.00
11.00
23.10
57.75
11.55
11.55
24.26
60.64
12.13
12.13
25.47
63.67
12.73
12.73
26.74
66.85
13.37
13.37
28.08
70.20
14.04
14.04
29.48
73.71
14.74
14.74
Rent of WorkShop
6.00
462.50
6.00
485.33
6.00
509.31
6.00
534.45
6.00
560.88
6.00
588.63
617.75
EBDIT
87.50
92.17
97.07
102.24
107.65
113.32
119.30
19.56
16.55
13.54
10.53
7.52
4.51
1.50
Less : Depreciation
13.98
45.86
13.98
53.13
13.98
9.18
36.68
12.26
0.00
Less : Interest on CC
Profit Before Tax
Less Dividend
Retained Earnings
8.11
36.68
36.68
8.52
76.29
13.98
10.87
68.35
13.98
10.35
60.61
13.98
9.86
84.48
92.95
40.87
16.11
44.50
19.84
48.51
23.44
52.85
26.98
57.51
30.47
62.48
0.00
0.00
0.00
0.00
0.00
0.00
40.87
77.55
8.94
44.50
122.05
9.39
6.00
48.51
170.56
52.85
223.41
57.51
280.92
13.98
62.48
343.40
Annexure -3
1st Year
2nd Year
3rd Year
4th Year
5th Year
6th Year
7th Year
Capital
104.00
327.41
280.92
104.00
274.56
223.41
104.00
226.05
170.56
104.00
181.55
122.05
104.00
140.68
77.55
104.00
Sub Total a
36.68
104.00
384.92
447.40
133.71
133.71
111.43
111.43
89.14
89.14
66.86
66.86
44.57
44.57
22.29
22.29
0.00
0.00
Creditors
77.98
127.75
34.62
104.50
121.67
32.97
99.52
115.88
31.40
94.78
110.36
29.90
90.27
105.10
28.48
85.97
Sub Total c
27.12
81.88
134.14
140.85
Total Sources
379.50
403.34
431.07
463.09
499.74
541.34
588.25
Gross Block
230.00
160.12
83.86
230.00
174.09
69.88
230.00
188.07
55.91
230.00
202.05
41.93
230.00
216.02
27.95
230.00
Net Block
13.98
230.00
146.14
132.16
45.21
47.47
49.84
52.33
54.95
57.69
60.58
Sundry Debtors
67.81
71.20
74.76
78.50
82.42
86.54
90.87
Sub Total b
Current Liabilities
343.40
36.35
Application of Funds
Fixed Asset
Inventories (RM)
27.12
11.00
12.34
163.48
379.50
28.48
11.55
42.60
201.29
403.34
29.90
12.13
31.40
12.73
32.97
13.37
34.62
14.04
97.84
36.35
14.74
76.37
114.04
155.91
202.31
253.55
431.07
463.09
499.74
541.34
588.25
243.00
289.00
339.62
395.20
456.08
Annexure -4
REPAYMENT SCHEDULE
Particulars
Opening Balance
Addition
Total
Repayment
Closing Balance
Interest @13.5%
1st Year
2nd Year
3rd Year
4th Year
5th Year
6th Year
7th Year
0.00
133.71
111.43
89.14
66.86
44.57
22.29
156.00
133.71
111.43
89.14
66.86
44.57
22.29
133.71
111.43
89.14
66.86
44.57
22.29
0.00
156.00
22.29
19.56
0.00
22.29
16.55
0.00
22.29
13.54
0.00
22.29
10.53
0.00
22.29
7.52
0.00
22.29
4.51
0.00
22.29
1.50
Annexure -5
Increase in a) Capital
1st Year
2nd Year
3rd Year
4th Year
5th Year
6th Year
7th Year
36.68
40.87
44.50
48.51
52.85
57.51
62.48
156.00
13.98
104.00
77.98
27.12
415.76
225.00
22.29
Preliminary Expenses
5.00
0.00
13.98
-
3.90
1.36
13.98
-
4.09
1.42
13.98
-
4.30
1.50
13.98
-
4.51
1.57
13.98
-
4.74
1.65
13.98
-
4.98
1.73
60.10
63.99
68.28
72.91
77.87
83.17
22.29
22.29
30.22
30.62
31.03
31.47
31.93
12.34
12.34
30.26
42.60
33.77
76.37
114.04
155.91
202.31
42.60
76.37
37.67
114.04
41.87
155.91
9.18
22.29
29.84
12.34
8.75
22.29
7.56
8.33
22.29
151.14
403.42
7.94
22.29
46.40
202.31
9.64
51.24
253.55
Annexure -6
Sundry Debtors
Holding
level
(days)
30
30
45
30
Utilisation
ROI
Interest
1st Year
27.12
45.21
67.81
13%
28.48
47.47
71.20
3rd Year
29.90
49.84
74.76
4th Year
31.40
52.33
78.50
5th Year
32.97
54.95
82.42
6th Year
34.62
57.69
86.54
7th Year
36.35
60.58
90.87
140.14
147.14
154.50
162.23
170.34
178.85
187.80
27.12
28.48
29.90
31.40
32.97
34.62
36.35
27.12
28.48
29.90
31.40
32.97
34.62
36.35
113.01
118.66
124.60
130.83
137.37
144.24
151.45
77.98
81.88
85.97
90.27
94.78
99.52
104.50
13%
13%
35.03
80%
2nd Year
62.38
13%
8.11
36.79
65.50
13%
8.52
38.63
68.78
13%
8.94
40.56
72.22
13%
9.39
42.58
75.83
13%
9.86
44.71
79.62
10.35
46.95
83.60
10.87
Sl No
Particulars
Current Ratio
2
4
5
6
7
8
EBDIT/Sales
TOL/TNW
Debtors Days
Crediors Days
1st Year
6.67%
15.91%
1.56
0.95
1.62
1.70
45
30
Annexure -7
2nd Year
3rd Year
4th Year
5th Year
6th Year
7th Year
16.0%
16.0%
16.1%
16.1%
16.1%
16.2%
7.08%
1.82
0.61
1.81
1.22
45
30
7.34%
2.10
0.39
2.11
0.91
45
30
7.62%
2.38
0.24
2.60
0.69
45
30
7.91%
2.66
0.14
3.59
0.53
45
30
8.19%
2.95
0.06
8.48%
3.24
0.00
6.56
#######
45
45
0.41
30
0.31
30
Annexure -8
Sl No
Particulars
1st Year
4th Year
5th Year
6th Year
7th Year
45.86
53.13
60.61
68.35
76.29
84.48
92.95
Total
59.83
67.11
74.59
82.33
90.27
98.46
106.93
0.00
0.00
2
4
5
6
7
8
9
10
11
13.98
34.50
0.00
13.98
29.33
0.00
13.98
24.93
0.00
13.98
21.19
0.00
13.98
18.01
0.00
13.98
15.31
13.98
13.01
Balance
25.33
37.78
49.66
61.14
72.26
83.15
93.92
45.86
53.13
60.61
68.35
76.29
84.48
92.95
25.33
8.22
9.18
9.18
37.78
12.26
10.63
12.26
49.66
16.11
12.13
16.11
61.14
19.84
13.68
19.84
72.26
23.44
15.26
23.44
83.15
26.98
16.90
26.98
93.92
30.47
18.60
30.47
Annexure -9
DEPRECIATION SCHEDULE
Under the Companies Act
Particulars
Gross Block
Additions/Adjustment
5.28%
Total Depreciation
Net Block
Gross Block
Additions/Adjustment
9.75%
Total Depreciation
Net Block
Additions/Adjustment
Total
15%
Opening WDV
Total
0.00
9.98
19.96
29.94
39.92
49.90
59.88
189.00
9.98
9.98
0.00
189.00
9.98
19.96
0.00
189.00
9.98
29.94
15%
0.00
189.00
9.98
39.92
0.00
189.00
9.98
49.90
0.00
189.00
9.98
59.88
0.00
189.00
9.98
69.85
179.02
169.04
159.06
149.08
139.10
129.12
119.15
41.00
41.00
41.00
41.00
41.00
41.00
41.00
0.00
4.00
8.00
11.99
15.99
19.99
23.99
41.00
4.00
4.00
0.00
41.00
4.00
0.00
41.00
4.00
0.00
41.00
4.00
41.00
4.00
41.00
4.00
41.00
4.00
11.99
230.00
230.00
230.00
230.00
230.00
230.00
230.00
13.98
27.95
41.93
55.91
69.88
83.86
97.84
0.00
230.00
13.98
202.05
0.00
230.00
13.98
188.07
2nd Year
3rd Year
0.00
230.00
13.98
174.09
4th Year
21.01
0.00
230.00
13.98
160.12
5th Year
23.99
0.00
8.00
25.01
19.99
0.00
33.01
29.01
15.99
0.00
37.00
Office Equipments
Additions/Adjustment
189.00
Opening WDV
7th Year
189.00
216.02
6th Year
189.00
13.98
Net Block
5th Year
189.00
230.00
4th Year
189.00
0.00
Total
3rd Year
189.00
0.00
Total
2nd Year
189.00
0.00
Total
PARTICULARS
1st Year
17.02
0.00
230.00
13.98
146.14
6th Year
27.98
13.02
0.00
230.00
13.98
132.16
7th Year
189.00
160.65
136.55
116.07
98.66
83.86
71.28
28.35
24.10
20.48
17.41
14.80
12.58
10.69
0.00
189.00
160.65
0.00
160.65
136.55
0.00
136.55
116.07
0.00
116.07
98.66
0.00
98.66
83.86
0.00
83.86
71.28
0.00
71.28
60.59
41.00
34.85
29.62
25.18
21.40
18.19
15.46
6.15
5.23
4.44
3.78
3.21
2.73
2.32
0.00
41.00
34.85
34.50
0.00
34.85
29.62
29.33
0.00
29.62
25.18
24.93
0.00
25.18
21.40
21.19
0.00
21.40
18.19
18.01
0.00
18.19
15.46
15.31
0.00
15.46
13.14
13.01