Light Engineering (Nut, Bolt, Washer, Rivets, Etc.) : 2. Market

LIGHT ENGINEERING
(NUT, BOLT, WASHER, RIVETS, etc.)

 Introduction
The project is envisaged for establishing a machining unit for the

manufacture of simple fastening components such as screws, bolts, nuts, washers, car
clips, rivets and so on. These items are required by all types of industries including
automobiles.
2. Market:
The products have a good demand in local market. Transportation industries like
bicycles, automobiles, body builders, aircrafts etc, building activities such as construction
areas, electrical industries and other heavy and light industries are the common customers.
Hence the marking of these products will not be a tough
. 3. Manufacturing Process
An unfinished work piece requiring machining will need to have some

material cut away to create a finished product. A finished product would be a work piece
that meets the specifications set out for that work piece by engineering drawings or
blueprints. A lathe is a machine tool that can be used to create that diameter by rotating a
metal workpiece, so that a cutting tool can cut metal away, creating a smooth, round
surface matching the required diameter and surface finish. A drill can be used to remove
metal in the shape of a cylindrical hole. Other tools that may be used for various types of
metal removal are milling machines, saws, and grinding machines. Many of these same
techniques are used in woodworking.the "traditional" machining processes, such as
turning, boring, drilling, milling, broaching, sawing,shaping, planing, reaming, and
tapping, or sometimes to grinding.
Courtesy:
FINANCIAL ASPECTS
Free
1. Land hold
2. Building Rented
 Plant & Machinery
Sl.N Item Qt
1 Lathe Machine 1 Rs. 125,000.00
2 Tread rolling Rs.
3 Stand Drill 1 Rs. 9,500.00
4 Hand Grinders 2 Rs. 13,000.00
5 Hand Driller 3 Rs. 16,000.00
6 Hammer & Tools Rs. 6,000.00
7 Rivette Machine 1 Rs. 8,000.00
8 Cutting 1 Rs. 8,000.00
9 Sheet Cutters 2 Rs. 3,750.00
10 Transportation, Errection,Sales Tax etc. Rs. 3,250.00
Total Rs. 3,00,000.00
 Raw Material Required per month
1 M S 1675 kg & Rs. 55/= Rs. 56,250.00

2 Metal Sheet 1100 kg & Rs. Rs. 33,750.00
3 Other items LS Rs. 10,000.00
Total Rs. 1,62,225.00
 Man Power per month
1 Manager Rs. 8,000.00

2 Skilled Workers Rs. 16,000.00
3 Helper Rs. 4,500.00
Total Rs. 28,500.00
 Other Expenese per month
Courtesy:
1 Power Rs. 2,000.00
2 Rent Rs. 3,000.00
3 Postage & Telephone Rs. 500.00
4 Miscellenious expenses Rs. 2,500.00
Total Rs. 8,000.00
 Working Capital Requirement
1 Stock of Raw 30 Day Rs.

2 Raw Materials in 2 Day Rs.
3 Stock of Finished 3 Day Rs.
4 Credit Sale 10 Day Rs.
5 One Month working expenses Rs.
Total Rs.
 Production per Month
2500 Kgs of Nuts , Bolts , Washer etc @ Rs.90 / Kilo Rs. 2,25,000.00
Total Project
9. Cost
1 Land Free hold

2 Building Rented
3 Plant & Machinery Rs. 3,00,000.00
4 Working Capital Rs. 3,29,200.00
Total Rs. 6,29,200
 MEANCE OF FINANCE
1 Promoters Contribution Rs. 1,88,800.00

2 Term Loan Rs. 2,21,000.00
3 Working Capital Loan Rs. 2,30,400.00
TOTAL Rs. 6,292,200.00
Courtesy:
 Cost of Production and Profitability Statement for a normal year of operation
Year 1st
Number of Working Days 300
Number of Shift 1
Installed Capacity 4500000.00
Capacity Utilisation 60
Production 2700000.00
A. Net Sales 2700000.00
B. Cost of Production
Raw materials 1951500.00
Salaries 96000.00
Wages 246000.00
Power Charges 24000.00

Repairs and Maintenance 12000.00
Depreciation&insurance 39000.00
Total 2368500.00
C.Gross Operating Profit 331500.00
D. Administrative and Selling Expenses
Administrative Expenses& 72000.00
Selling Expenses
E. Financial Expenses
Interest on Term Loan 26831.00
Interest on Working Capital Loan 32256.00
F. Total D & E 131087.00

G. Net Profit 200413.00
H. Provision for taxes 4041.00
I. Net profit 196372.00
J. Withdrawals 0.00
K. Depreciation 36000.00
L. Cash Surplus 232372.00
12. Break- Even Point 42.37%

13. DSCR 3.1
14.Return on Investment 31%
Courtesy:
Courtesy:

Light Engineering (Nut, Bolt, Washer, Rivets, Etc.) : 2. Market

Uploaded by

Copyright:

Available Formats

Light Engineering (Nut, Bolt, Washer, Rivets, Etc.) : 2. Market

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Light Engineering (Nut, Bolt, Washer, Rivets, Etc.) : 2. Market

Uploaded by

Copyright:

Available Formats

LIGHT ENGINEERING

(NUT, BOLT, WASHER, RIVETS, etc.)

The project is envisaged for establishing a machining unit for the

An unfinished work piece requiring machining will need to have some

 Plant & Machinery

Total Rs. 3,00,000.00

 Raw Material Required per month

1 M S 1675 kg & Rs. 55/= Rs. 56,250.00

Total Rs. 1,62,225.00

 Man Power per month

1 Manager Rs. 8,000.00

3 Helper Rs. 4,500.00

Total Rs. 28,500.00

 Other Expenese per month

4 Miscellenious expenses Rs. 2,500.00

Total Rs. 8,000.00

 Working Capital Requirement

1 Stock of Raw 30 Day Rs.

 Production per Month

1 Land Free hold

Total Rs. 6,29,200

1 Promoters Contribution Rs. 1,88,800.00

Power Charges 24000.00

F. Total D & E 131087.00

12. Break- Even Point 42.37%

You might also like