Detailed Project Report

SISI Chennai Detailed Project Report - Format
Detailed Project Report
on
Manufacturing of Bright bars
Prepared by
K.SIVA RAMA PRASAD,Asst.Director/Met.
Govt. of India
Ministry of Small Scale Industries
SMALL INDUSTRIES
SERVICE INSTITUTE
65/1,GST Road, Guindy, Chennai - 600032.
(Ph: 91 44 2234 1011 - 12 - 13 -
Fax: 91 44 2234 1014) (Email:
sisichennai@eth.net Website: www.sisi-chennai.com)
Page 1 of 49
Table of Contents
Chapter
Description Page No.
No.
1 Project at a Glance
2 Biodata of Promotors
3 Market Survey
4 Location and Site Selection
5 Manufacturing Process
6 Technological Aspects
7 Quality Control
8 Land & Building
9 Plant & Machinery
10 Other Miscellaneous Fixed Assets
11 Preliminary & Pre-operative Expenses
12 Capacity Utilisation
13 Raw Material Requirement
14 Consumables & Spares
15 Manpower Requirement
16 Organisation Chart
17 Plant Utilities & Services
18 Annual Sales
19 Production Plan
20 Selling Process
21 Selling Expenses
22 Working Capital Requirement
23 Total Cost of the Project & Means of Finance
Page 2 of 49
23 Total Cost of the Project & Means of Finance
24 Schedule of Implementation
Project at a Glance
1 Name of the Enterprise Metropolitan Equipments & Consultants

Pvt. Ltd.
2 Status (Whether Micro / Small / Medium Small enterprise
Enterprise)
3 Constitution
4 Date of Establishment / Introduction Three month
5 Factory Location Barugur Industrial Estate.(SIDCO)
6 Registerd Office / Postal Address with A-486,Wagle Industrial Estate,Road no-

Phone Numbers 24,Thane(w)-400604,Ph-022-25823294
7 Promoter's Name
8 Product(s) Bright bars
9 New Project / Modernization / Expansion / New Project.

Diversification?
10 Prposed Installed Capacity 4800 MT.
11 Proposed Capacity Utilization 3000 MT.
12 Total Project Cost 1,35,00,000.
13 Capital Composition Term Loan --------------78,00,000.
Subsidy
14 Technical Knowhow Indigenous /
………………………………………………..
15 Major Raw Materials Black Steel Bars
16 Employment …49…………. Persons
17 Basis of Assumption ..3.. Shifts per Day of .8….. Hours, …

280……. Days per Year
18 Debt Equity Ratio 78/42
19 Working Capital 15,00,000.
20 Promoter's Contribution to Total Project 31.11

Cost
21 Percentage of own funds block 31.11
22 D.S.C.R. 5.43 at 100% utilisation.
Page 3 of 49
23 Break-Even-Lelel
24 Pay Back Period
Biodata of Promoter(s)
1 Name
2 Father's Name
3 Date of Birth
4 Age
5 Academic Qualification
6 Residential Address
7 Business Address Metropolitan Equipments & Consultants

Pvt. Ltd.,Pottaneri, Metturdam-636402
8 Other Associate Concerns
9 Telephone Numbers 04292-278613, 9443231218
10 Bankers
11 Experience & Bachground
Page 4 of 49
Market Survey
1 End use of the product and type of concerns which use the product:
2 Present demand of the product:
3 No. of units already working in the state:
4 Expected increase in demand vis-à-vis expected increase in production:
5 Difference between the expected demand and supply:
6 Expected production from the proposed unit:
(Collect other information on demand and supply of the proposed items from various publications)
The bright Bars are basically the raw m/l's for a number of industries engaged in the manufacture of
items such as bolot as bolts, buts,shafts,iron bars and so many automobile parts etc.By virtue of the finished
surface,which is smooth and with in the desired tolerances,Bright bars are normally drawn round,sqa
pentagonal or hexagonal.
Being the basic raw m/l for all types of indusr tries, demand of bright bar is increasing in the country
and the Bright bars also exported.The expected production from the proposed unit is 3000 MT./Year.
Page 5 of 49
Location & Site Selection
1 Location of the Factory:Barugur Industrial Estate(SIDCO)
2 Water, Power & Other utilities / services available? ----- yes
3 Distance from the RaMaterial Market:
4 Skilled Labour available in the proposed area?-------------- yes
5 Distance from sales Market for finished goods and nearest railways:
6 Incentives, if any, available from Government at that site: (Subsidy, Tax relief etc.)--no
7 Other plus points-------the site is at a optimum distance to procure raw m/l as well as to
sell the finished goods around Chennai, Banglore& Hosur.
The location of the plant is at Barugur Industrial Estate (SIDCO)

Where water power and oter utilities/services available to ty\his small scale industry. The distncefrom
The distance for the
Raw Material market is approximately 500 km. And As the site is in Industrial Estate, skilled labours were availa
and Bangalore cities.
Page 6 of 49
Manufacturing Process
(Obtain details of production process starting from procurement of raw material)
M.S. Roads of desired size are first pickled and then pointing machine and then drawn on drawing b
bench. They are then straitened on straitining m/c.
5% sulphuric acid is used for pickling the average consumptionof which is 18 Kg/Tonne
The spindle oil is normally used to consumption of which is 1 Ltr./Tonne.
the remaining consumables are as under.
1)grease
2)Gear oil
3)Mobile oil
4)Strait cutting oil
Process flow chart for Bright bar Mnufaturing
MS Roads black
Pickling
Pointing
Drawing
Straitening
Finishing
Page 7 of 49
Packing
Despatch
Technological Aspects
1 Process Chosen:
2 Alternative processes: ----- no
3 Reasons for adopting the proposed process (suitability of the proposed technology):This
process is suitable for small scale production.
4 The sources from which the knowhow is to be / have been procured:---SISI,CHENNAI-32
5 Will there be any biproduct? (If yes, the manner of its disposal) ----- no
process chosen
Mild steel rods of desired size are first picked and than pointing the rods, on pointing m/c, to facilitate
drawing the rods, then the rods are drawn on drawing bench and they are then straightened on straightening m
Page 8 of 49
Quality Control
1 Whether BIS Standards are prescribed for the product?----YES
2 If so, the IS Specifications for the same:
3 Is the unit interested in getting ISI Mark / ISO Certification?-------YES
Generally Quality of Bright bars are required to meet the customer requirements and specification.For mechan
Page 9 of 49
Land & Building
1 Have you obtained estimate from qualified Civil Engineer for building?
2 Land:
(i) Place
(ii) Area
(iii) Rate per Sq. Ft / Meter
(iv) Value -25 lakhs
(v) Other Expenses I.e. Registration Fee etc.
(vi) Estimated cost of land development
(vii) Total Cost
Page 10 of 49
Plant & Machinery
1 Obtain addresses of Machinery Suppliers or Fabricators.BHAMBRA ENGINEERING

WORKS,237/K,MANICKTALA MAIN ROAD,KOLKATA-700054.
2 Obtain qfrom the Machinery Suppliers alongwith leaflets for machinery specifications.
3 List the items of Machinerychosen alongwith the name of the supplier (Out of the
available quotations)Bhambra Heavy Duty Draw bench Machine Model-DB-65
4 Add the following amount - Packing and forwarding, Taxes, Cost of Erection &
Installation
5 Spares to be purchased alongwith the machinery (Description & Value)
1)Bhambra bar peeling m/c model-TM-Rs.6,50,000

2)Bhambra bar Pointing m/c model-PM-65-Rs.1,70,000
3)Bhambra heavy duty draw bench m/c model-DM-65-Rs.14,20,000
M/C Bhambra Engineering Works

237/K, Manickatala main road, Kolkata-700054.
F/C 1)Pyrotherm Engineers Pvt. Ltd

NO.18/283 part-II , Tass Industrial Estate, Ambattur-98
2)Axioms thermo furnacers (P) Ltd. Ambattur-98
3)Thermal Tech Engineering, No.7, Industrial Estate, Mettukuppam, Chennai-96.
Grinder m/c BHAGWANSONS, Gill Raod Opposite ITI Ludhiana-141003.
Page 11 of 49
Plant & Machinery Requirement
Rate in
Sl. No. Item Quantity Amount (Rs)
lakhs
1 Annealing Furnace 1 20 20
2 Bar peeling m/c 1 7 7
3 Straitening m/c 2 6 12
4 Draw bench 1 7 7
5 Centreless Grinding m/c 3 9 27
6 Bandsaw cutting m/c 1 0.7 0.7
7 Magna flux Tester 1 5 5
8 Pendented operated crane 1 4 4
9 Structural for m/l storage 1 1.3 1.3
10 Pedastal Grinder 1 0.3 0.3

11 Lath 1 1.7 1.7
12 Shaper 1 0.7 0.7
13 Drilling M/c 1 0.3 0.3
Note: Add price escalation, taxes, duties, freight, insurance, erection & contingencies
Page 12 of 49
Other Miscellaneous Fixed Assets
Sl. No. Item Amount (Rs)
1 Furniture & Office Equipments 5 lakhs
2 Tools 50,000
3 Laboratory & Testing Equipments 5 lakhs
4 Fire Fighting Equipments 10000
5 Others (Specify) 10000
Total Cost 10,70,000
Page 13 of 49
Preliminary & Preoperative Expenses
Sl. No. Item Amount (Rs)
1 Company Formation, Registration Expenses 5000
2 Rent of the premises, Telephone Bills, Electricity Bills etc. 5000
3 Project Report / Feasibility Studies charges 5000
4 Mortgage, Stamp Duty and Legal Expenses 15000
5 Salaries, Travelling and Office Expenses 15000
6 Start up and Commission Expenses 10000
7 Interest and Commitment Charges on Term Loans
8 Other Miscellaneous Expenses 10000
Total
Page 14 of 49
Capacity Utilization
(a) Capacity Utilization------60%
Year I II III
Bright bars
60% 80% 100%
(b) Installed Capacity (based on …3……… shifts …24……………. Working days)
(c) Product Mix
Page 15 of 49
Sl. No. Products %
1 Bright bars 100%
Raw Material Requirements
Sl. No. Raw Material Description Rate (Rs) Value (Rs)
1 Black MS bars 28 Lakhs 386.4 Lakhs
Total 386.40 Lakhs.
Page 16 of 49
Note: Obtain quotations from the suppliers of raw material
Consumables & Spares
1 List the consumables required
2 Wherefrom consumables and spares will be obtained? (Sources of Supply)
At 100% Capacity Years

Description
Utilization 1st 2nd 3rd
(A) Consumption
I Consumables
(i) Lubricant 50,000
(ii) Cotton Waste 10,000
(iii) Others (Specify) 50,000
Total (I) 1,10,000 1,20,000 1,40,000
Page 17 of 49
Total (I) 1,10,000 1,20,000 1,40,000
II Spare Parts
(i) Grinding Wheels & dies 5 Lakhs
(ii) Other Tools 1 Lakh
(iii) Misc 50,000.00
Total (II) 6,50,000 7,15,00 7,86,000
Total (I + II) 7,60,000 8,35,000 9,26,000
B Stock Requirements
(a) Consumable (………………….. Months) 20,000
(b) Spare Parts (……………………. Months) 50,000
70,000
Total
Man Power Requirement
Monthly Total Amount

Sl. No. Designation Nos.
Remuneration (Rs) (Annual)
Page 18 of 49
Add …….. % as perquisites
Total
A Administrative Staff
1 Works Manager
2 Purchase Officer
3 Sales Officer
4 Administrative Officer cum Accountant
5 Clerk cum Computer Operator
6 Store Keeper
7 Watchman
B Production Staff
1 Manager
2 Plant Supervisors
3 Plant Operator
4 Skilled Workers
5 Unskilled Workers
Organization Chart
Page 19 of 49
Directors
Works Manager
Plant Supervisor Administrative Officer
Plant Operator Purchase Officer
Composer Sales Officer
Proof Reader Store Keepr
Skilled Worker Clerk / Typist
Unskilled Worker Watchman
Page 20 of 49
Plant Utilities & Services
A Power
1 Load required for machines ………. HP

2 Load required for lighting etc. ………. HP
3 Total connected load (1 + 2) …80……. HP
4 Load Factor (Power Factor) 0.7
5 Required running load (3 x Power Factor) 56
6 Total running load required per day 1600……. HP
7 Required running load per year 480000…. HP
8 Tariff per HP 0.80 units
9 Annual Power Bill 21.12 Lakhs
10 Monthly Power Bill 1.7 Lakhs
Note: Power Formula: KVA x Load Factor x No. of Hours x No. of Days x Cost per Unit x Capacity
Utilization.
B Water
1 Whether process required any water? If no, water for drinking yes
and sanitation purposes (estimate in Rs.)
2 Water required per day
3 Total no. of working days 300
4 Annual Water consumption
5 Annual Water bill @ Rs. …….. Per 1000 litres
C Fuel
Sl. No. Item Qty Rate Amount (Rs)
1 LPG
2 Coal
3 Petrol
4 Kersene
5 Diesel
Total
Page 21 of 49
Annual Sales (at 100% activity level)
Sl. No. Item Qty Rate Amount (Rs)
1 Bright bar 1200t 36,000/t 432 lakhs
432
Total
Page 22 of 49
Production Plan
Production
Sl. No. Product / Item As per Optimum
Capacity Standard I Year II Year III Year
1 Bright bar's 4800 60% 80% 100%
Percentage of installed capacity:
Page 23 of 49
Selling Process
1 What will be the selling process? (through agents / distributors / sales depot)
2 Percentage of sales that will be on credit
3 Period of credit
Selling Expenses
For Standard For proposed production

Sl. No. Description of Item
Production I Year II Year III Year
1 Packing Materials 5000 6000 7000
2 Handling & Loading / Booking 150000 170000 190000
3 Freight 250000 275000 300000
4 Insurance 25000 30000 35000
5 Unloading & Handling at 150000 165000 180000

destination
6 Rent for Sales Offices / 5000 6000 7000
Godowns
7 Commission payable to 100000 110000 120000
Distributor / Agents
8 Sales Promotional Expenses 30000 35000 40000
565000
Total ( 1 + 8 )
9 Establishment of Cost of
Sales Depots
Grand Total
Page 24 of 49
Working Capital Requirement
1 Planned production per month / year 3000mt
Anticipated monthly / yearly sales 334.8

(i) Cash
(ii) Credit
3 Cost of production per month / year 317.6
(i) Raw Material 231.84
(ii) Direct Labour & Wages 35.24
(iii) Direct Overheads 50.52
4 The period for which raw materials are to remain in
stock
5 The length of the manufacturing process (in hours / 45 Hrs
minutes)
6 Peduring which finished product will remain in stock Bright bars
for sale
7 The period of credit allowed by suppliers 01 month
8 The period of credit allowed to customers on credit 01 month

sale
Bank Finance Years

Sl. No. Description
available I Year II Year III Year
1 Raw Materials
Black ms bar 231.84
(b) …………………… For
………..
(c) Months
…………………… For
2 ……….. Months
Work in Progress
For …15 days…………………...
months / days requirements
3 Spares & Consumables to be
kept in Stores 50.52
4 Finished Goods
(a) ………… For ……01
Week…..
(b) ………… Days/Months
For ………..
Days/Months
(c) ………… For ………..
5 Days/Months
Monthly Cash Expenses 35.24
(a) Wages
(b) ………….
(c) ………….
6 Sales on Credit for …01
Month…. Months Turnover
Page 25 of 49
7 Total
8 Less: Credits for inputs for

…….. Months purchases
9 Net Working Capital
requirements
Note: The Margin Money for working capital requirement is calculated on the basis of following
norms adopted by all nationalized banks generally:
1 Margin on stock of raw materials and packing materials in store 20%
2 Margin on stock of raw materials and packing materials in 30%

process
3 Margin on finished goods for sales 30%
4 Margin on Account Receivables (Debtors) 20%
5 Margin on other recurring expenses 100%
6 Margin on electricity deposit 100%
All these norms may change from time to time so the entrepreneurs are advised to contact the
banker for the latest norms fixed in this regard.
Page 26 of 49
Total Cost of the Project & Means of Finance
Sl. No. Particulars Amount (Rs)
Cost of the Project
1 Land & Site Development 25
2 Building 20
3 Plant & Machinery 63
4 Ancillary Machinery
5 Electrical Installation 6
6 Miscellaneous Fixed Assets (Furniture, Office Equipment etc) 5
7 Preliminary Expenses 1
8 Pre-Production Expenses 2
9 Contingencies 6
10 Margin Money for Working Capital 15
Total
Means of Finance
1 Promoter's Contribution 42
2 Venture Capital
3 Internal Cash Accruals
4 Term Loan from Bank / Financial Institution 78
Page 27 of 49
4 Term Loan from Bank / Financial Institution 78
Total
Phasing of Capital and Pre-Production Expenses
Years
Sl. No. Description
I II III
A. Preliminary Expenses
(i) Studies and Investigation 10000

(ii) Survey 5000
(iii) Project Report 5,000
(iv) Legal Expenses for Registration etc. 5000
(v) Capital Issue Expense
(vi) Expenses on Arrangement of Funds from other 5000
Sources
(vii) Others (to be specified) 10000
Total (A)
B. Fixed Assets
(i) Land 2500000

2000000
(ii) Building
(a) Factory including stores 2000000
(b) Administration Block 2000000
(c) Residential Building
(d) Roads 200000
(e) Boundary Wall etc. 500000
(f) Tubewell & Overhead Tank 200000
(g) Railway siding
Total (ii)
(iii) Machinery 6300000

(a) Cost at Site
(b) Erection & Commissioning 500000
Total (iii)
Total (B)
(iv) Tools and Tackles

500000
Page 28 of 49
(iv) Tools and Tackles

500000
(v) Vehicles and Cranes

1000000
(vi) Others
200000
C. Pre-Production Expenses 1000000
D. Total (A+B+C)
Schedule of Implementation
Period in
Sl. No. Description Commencement Completion
Months
1 Acquisition of Land & Site
one
Development
2 Civil Works
six
3 Wood work & Interiors

one
4 Plant & Machinery one

(a) Placement of Orders
(b) Delivery at Site
5 Arrangement of Power
one
6 Arrangement of Water
7 Procurement of Raw Material
8 Recruitment / Training of
Personnel 1 week
9 Inauguration & Commercial
Production 1 week
Page 29 of 49
Term Loan Repayment Schedule
Term Loan Rs.----78
Rate of Interest 12.00%
Moratorium 5-------Yrs
Half yearly / Quarterly Instalments Rs. …………… Each
No. of Instalments ……..
Years
Sl. No. Description
I II III IV V
1 Amount outstanding at the 78 64 48 32 16
beginning of the first half
2 Interest @ …… (for half year) 12% 12% 12% 12% 12%
3 Total
4 (-) Repayment alongwith

interest at the end of 1st half
5 Amount outstanding at the
beginning of the 2nd half
6 (+) Interest @ …. (for half
year)
7 Total
8 (-) Repayment alongwith

interest at the end of 2nd half
9 Amount outstanding at the
end of the year
Page 30 of 49
Pre-Production Expenses
Years
Sl. No. Description
I II III
1 Salary of Management / Supervisory & Labour 3,524,400 38.76 42.64
2 Training Expenses 300000
3 Legal & Professionals 10000
4 Technical knowhow fees 50000
5 Conveyance / Transport 50000
6 Miscellaneous
Total
9.36 7.68 5.76

Interest on Loan during pre-production period
Grand Total
Page 31 of 49
Debt Service Coverage Ratio (D.S.C.R)
DSCR as computed below illustrates fir's ability to pay regularly instalments towards term loan
alongwith interest due thereon at maturity dates.
Years (Rs. in Lakhs)

Description
1 2 3 4 5
Net Profit after Tax 11.35 27.43 43.33 69.47 98
Add: Depreciation 8.3 7.47 6.72 6.05 5.45
Add: Interest on Term Loan 11.16 9.48 7.56 5.64 3.72
(A) Total Funds Available
Interest on Term Loan 9.36 7.68 5.76 3.84 1.92
Instalment 14 16 16 16 16
(B) Total financial obligations to Bank /

Financial Institution
DSCR (A/B)
Total funds available over the period

Average Total DSCR =
Page 32 of 49
Average Total DSCR =

Total financial obligations to Bank
Probable Profitability
I Year II Year III Year

Description Capacity Utilization
60% 80% 100%
334.8 446.4 558
(A) Gross Sales
(B) Expenditure
(a) Direct Cost 231.84 309.12 386.4
(i) Raw Materials
(ii) Freight 5.18/35.24 6.91/38.77 8.64/42.65
(iii) Wages
(iv) Power & Fuel 19.87 26.5 21.12
(v) Packaging Material
(vi) Selling & Distribution 7
Expenses
Total Direct Cost
(b) Indirect Cost
(i) Staff salary & welfare 35.24

(ii) Administrative Expenses 6 6.6 7.26
(iii) Repair & Maintenance 5
(iv) Rent, Rates & Taxes 2
(v) Interest on Term Loan @ ...% 11.16 9.98 7.56
(vi) Interest on WC @ …. % 12% 12% 12%
Page 33 of 49
(vii) Depreciation 8.3 7.47 6.72

(viii) Production & Pre-production 10
Exp. W/off
Total Indirect Cost
Total B
Profit before Taxes (A - B) 17.2 41.55 65.65
Income Tax Provision 5.85 14.13 22.32
Balance of Profit after Income Tax 11.35 27.43 43.33
Calculation of Tax Liability
Operating Years
Sl. No. Description
1st 2nd 3rd 4th 5th
1 Operating Profit as per P&L 17.2 41.55 65.65 105.25 148.49
A/c (Profit before Tax)
2 Add: Depreciation Charged 8.3 7.47 6.72 6.05 5.45

(Straight Line Method)
3 Total (Rs) 25.5 49.02 72.37 111.3 153.94
4 Less: Depreciation as per

Income Tax Act. (Written
Down Value Method)
5 Adjusted Profit (3 - 4)
6 Profit after accumulating loss
7 Gross Taxable Income
8 Tax Liabilityon the above

income
Page 34 of 49
Projected Balance Sheet
Constructio At the end of the year

Description n Period 1 2 3 4 5
Liabilities
Promotor's Contribution 42
Reserves & Surplus
Capital Subsidy
Long Term Loans 78
Current Liabilities
Sundry Creditors
Others (Specify) 15
Total 135
Assets
Land (Book Value) 25
Gross Fixed Assets 83
Less: Depreciation
Net Fixed Assets
Current Assets
Page 35 of 49
Loans & Advances 78

Sundry Debtors
Inventories
Cash & Bank Balances
Preliminary Expenses (to the
extent not written off)
Total
Break Even Analysis
(At practically attainable 90% capacity or to be based on 3rd year of operation)
Sl. No. Description Rs. in Lakhs
(A) Variable Expenses / Cost
Raw Material & Consumables

386.4
Wages (Including Benefits)

32
Power, Fuel & Water

22
Other Direct Expenses

3
Selling & DiExpenses

3
Interest on Working Capital

1.8
(B) Fixed Expenses / Cost
Page 36 of 49
Administrative Salaries including benefits (Staff Salaries)

7.26
Other Administrative Expenses

6
Interest on Term Loan

5.76
Depreciation (Sometimes only 50%)

6.72
(C) Sales Realization / Gross Sales 432
(D) Contribution (C - A)
Fixed Expenses x 100
(E) BEP = ……. %
Contribution
(E) BEP in terms of installed Capacity ………………… ……. %
Pay-Back Period
Average profit before tax
Less: Tax @ ……………..
Profit after tax
Add: Average Depreciation written off
Cash inflow generated from the project
Total Cost of the Project

Pay-Back Period =
Cash inflow
Page 37 of 49
Note: Depreciation is added back to the profit since it does not result in a cash out flow
Ratio Analysis
Years
Sl. No. Descripion
1st 2nd 3rd
I Structural Ratio
(a) Debt Equity Ratio = (Long Term Debt / Equity 78/42

Capital)
(b) Fixed Assets to Proprietor's Funds = [Net Fixed 108/42
Assets / (Share Capital + Reserves)]
(c) Current Assets to Proprietor's Funds = (Current **/42
Assets / Proprietor's Funds)
(d) Net Fixed Assets to Funded Debt = (Net Fixed 108/78
Assets / Long Term Loans)
1965/259.
II Profitability Ratio
2
Page 38 of 49
(a) Gross Profit Ratio = [(Gross Profit x 100) / Net Sales] 17.2/42
(b) Return on Investment = [Profit before Interest & Tax / 17.2/11.1

(Equity Capital + Reserves)] 6
(c) Interest Coverage Ratio = [Net Profit before Interest 1.22
& Tax / Total Interest Charge]
(d) DSCR = [(Cash Accrual + Interest) / (Loan Instalment
+ Interest)]
III Turnover Ratio
(a) Fixed Assets Turnover Ratio = (Sales / Fixed Assets) 259.2/108
(b) Capital Turnover Ratio = (Sales / Total Capital 259.2/135

Employed)
Note 1: Financial Institutions generally prefer following debt equity ratio as the maximum
(I) for small scale industry - 3:1
(ii) for medium and large scale industry - 2:1
Note 2: The average DCSR should fall in nthe range of 1.6 to 2.0 times
Page 39 of 49
y virtue of the finished

uare,
Page 40 of 49
The distncefrom
Estate, skilled labours were available, sales market also around 500 km only and the near railway is southern railway, there is no incent
Page 41 of 49
hine and then drawn on drawing be
which is 18 Kg/Tonne
Page 42 of 49
ointing m/c, to facilitate

n straightened on straightening m/c, and there is no by product in this product.
Page 43 of 49
nts and specification.For mechanical and chemical properties Standards to be followed as per ISI Specification.And the firm is intereste
Page 44 of 49
m, Chennai-96.
Page 45 of 49
Page 46 of 49
uthern railway, there is no incentives and subsidy and tax relief for the govt. The plus point is that the site almost at middle point for che
Page 47 of 49
cification.And the firm is interested in getting ISI mark/ ISO certifications.
Page 48 of 49
site almost at middle point for chennai, Hosur
Page 49 of 49

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SISI Chennai Detailed Project Report - Format

Manufacturing of Bright bars

K.SIVA RAMA PRASAD,Asst.Director/Met.

4 Location and Site Selection

8 Land & Building

9 Plant & Machinery

10 Other Miscellaneous Fixed Assets

11 Preliminary & Pre-operative Expenses

13 Raw Material Requirement

14 Consumables & Spares

17 Plant Utilities & Services

22 Working Capital Requirement

23 Total Cost of the Project & Means of Finance

23 Total Cost of the Project & Means of Finance

1 Name of the Enterprise Metropolitan Equipments & Consultants

4 Date of Establishment / Introduction Three month

5 Factory Location Barugur Industrial Estate.(SIDCO)

6 Registerd Office / Postal Address with A-486,Wagle Industrial Estate,Road no-

8 Product(s) Bright bars

9 New Project / Modernization / Expansion / New Project.

11 Proposed Capacity Utilization 3000 MT.

12 Total Project Cost 1,35,00,000.

13 Capital Composition Term Loan --------------78,00,000.

16 Employment …49…………. Persons

17 Basis of Assumption ..3.. Shifts per Day of .8….. Hours, …

19 Working Capital 15,00,000.

20 Promoter's Contribution to Total Project 31.11

22 D.S.C.R. 5.43 at 100% utilisation.

24 Pay Back Period

7 Business Address Metropolitan Equipments & Consultants

9 Telephone Numbers 04292-278613, 9443231218

11 Experience & Bachground

2 Present demand of the product:

3 No. of units already working in the state:

4 Expected increase in demand vis-à-vis expected increase in production:

5 Difference between the expected demand and supply:

6 Expected production from the proposed unit:

Location & Site Selection

1 Location of the Factory:Barugur Industrial Estate(SIDCO)

2 Water, Power & Other utilities / services available? ----- yes

3 Distance from the RaMaterial Market:

4 Skilled Labour available in the proposed area?-------------- yes

The location of the plant is at Barugur Industrial Estate (SIDCO)

and Bangalore cities.

(Obtain details of production process starting from procurement of raw material)

The spindle oil is normally used to consumption of which is 1 Ltr./Tonne.

the remaining consumables are as under.

2 Alternative processes: ----- no

1 Whether BIS Standards are prescribed for the product?----YES

2 If so, the IS Specifications for the same:

3 Is the unit interested in getting ISI Mark / ISO Certification?-------YES

Land & Building

(iii) Rate per Sq. Ft / Meter

(iv) Value -25 lakhs

(v) Other Expenses I.e. Registration Fee etc.

(vi) Estimated cost of land development

(vii) Total Cost

Plant & Machinery