PROJECT PROFILE ON STEEL FABRICATION UNIT

INTRODUCTION: Now a days various types of steel furniture like Almirah, Table, Chair, Racks, etc are
the normal requirements of a household. Steel almirah is practically used almost in every house, office,
shop, educational- institution, library etc. These have become essential in all these places because they
are used to keep clothes, paper, documents etc. safe and intact.
MARKET: The market for steel furniture is on rise. Steel furniture is not only in demand for household but
also in government office, bank etc. They are purchased in bulk by commercial houses every year.
Considering their increasing demand, the manufacturing units of these products are being established
successfully not only in big cities but also in small townships.
PRODUCTION CAPACITY: Operating single shift of 8 hours per day for 300 working days the Unit will
have an annual installed capacity as shown in sales realization below.
PROCESS OF MANUFACTURE: The goods manufacture in the unit involve a process that is simple and
proven and mainly depends on the standard of the manufactured products. For example, while making an
almirah the B.P/C.R.C.A. sheets are cut and bent and then handles and hinges and fitted into it. Then it is
painted, similarly while making chairs, the piper are welded
binding them as per the set size and
design and the painting of the material is done after blending & welding. Thereafter, the seat is fitted on
the chair. Many other products are manufactured in the similar manner.
Process Flow:

Sizing

Ready for Sale

blending

Welding

Spray
Painting

Fittings of parts

Scrub

CAPITAL COST
A. LAND & BUILDING: A Built up area about 1000 sq.ft :
B. PLANT & MACHINERY:
Sl. no.
Particulars
1
Press break 7 ft
2
Gas welding set
3.
Pillar type drilling m/c
4
Span compressor set
5
Welding transformer
6.
Bench Grinder
7.
Head tools & others equipment

Assembling

On rent .
Nos.
2
2
1
2
1
2
Total

C MISC. FIXED ASSETS:

Sl. No.
Description
1
Electrification & water installation
2
Furnitures & fixtures

Rate
LS
Total

Amount
62,000/10,000/10,000/30,000/18,000/14,000/16,000/1,60,000/Amount (Rs.)
5,500/30,000/35,000/-

D.Preliminary & pre-operative expenses

E. Contingency

18,000/12,675/2,26,175/-

Total Fixed Costs:

Working Capital
(a)
Raw Material
1.
M.S. Wire (cold drawn 5050 kg. bright wire) 20-9 gauge wire
2.
Old sacs/ bags for packing
3.
Other consumables

1,76,750/1,800/1,050/1,79,600/9,000/10,000/1,500/2,00,100/4,26,275/Say 4,26,000/-

Total : Rs.
(b)
(c)
(d)

Salary & Wages

Misc. expenses
Electricity/Utilities
Total Working Capital:
Total Project Cost

(1)
(2)
(3)
(4)

Means of Finance
Composite loan
Promoters contribution
Subsidy
Debt Equity Ratio

Profitability:
Sl.No.
Description
1.
2.
3.
a)
b)
c)
d)
e)
f)
g)
h)
3.
4.
5.
6.
7.
8.
9.
10.

Capacity utilized as percent

of installed capacity
Annual Sales Realization in
Rs.
Annual Costs in Rs.
Raw Materials
Utilities
Interest on working capital
Selling expenses
Variable Cost
Wages & Salaries
Administrative expenses
Depreciation
Interest on Composite Loan
Fixed & Semi Variable Cost
Total Cost
Annual Profit
Return on Investment
Return on sales
Annual contribution
Break Even Point as percent
of capacity
Cash accrual
Debt Servicing Capacity

Urban
2,98,200/21,300/1,06,500/2.33:1
1st

year

2nd

year

3rd

Rural
2,55,600/21,300/1,49,100/1.5:1
(Rs. in Thousands)
year
5th year

4th

year

60

70

80

80

80

18,03,000

21,03,500

24,04,000

24,04,000

24,04,000

12,93,120
10,800
15,008
7,200
13,26,128
64,800
72,000
22,618
34,252
1,93,670
15,19,798
2,83,202
18.63%
15.70%
4,76,872
40.61%

15,08,640
12,600
17,508
8,400
15,47,148
75,600
84,000
22,618
27,704
2,09,922
17,57,070
3,46,430
19.71%
16.47%
5,56,352
37.73%

17,24,160
14,400
20,010
9,600
17,68,170
86,400
96,000
22,618
27,200
2,32,218
20,00,388
4,03,612
20.17%
16.79%
6,35,830
36.52%

17,24,160
14,400
20,010
9,600
17,68,170
86,400
96,000
22,618
11,082
2,16,100,
19,84,270
4,19,730
21.15%
17.46%
6,35,830
33.99%

17,24,160
14,400
20,010
9,600
17,68,170
86,400
96,000
22,618
3,022
2,08,040
19,76,210
4,27,790
21.65%
17.79%
6,35,830
32.72%

3,05,820
3,40,077

3,69,048
3,96,752

4,26,230
4,53,430

4,42,348
4,53,430

4,50,408
4,53,430

11.
12.
13.
14.

Repayment of Composite
Loan
Debt Serviced
Pay Back Period
Debt Service Coverage Ratio

48,357

56,416

64,476

64,476

64,476

82,609
4 yr.

84,120
1 month

91,676
9 days
4.11:1

75,558

67,498

Cash Flow Statement

Sl.
No.

Description

1.

Increase in Promoters
contribution
Increase in composite
loan
Subsidy
Depreciation
Profit before interests
TOTAL SOURCES
Increase
in
capital
investment
Increase in working
capital
Interest
Repayment of Loan
TOTAL DISPOSALS
OPENING BALANCE
NET SURPLUS
CLOSING BALANCE

2.
3.
4.
5.
A.
6.
7.
8.
9.
B.
C.
D.
E.

Projected Balance sheet:

Sl.No. Description
1.
2.

(Rs. in Thousands)
Preoperative
Period

Operating Years
First

Second

Third

Fourth

Fifth

21,300

2,98,200

2,00,000

1,06,500
4,26,000
4,26,000

22,618
3,17,454
5,40,172
-

22,618
3,74,134
3,96,752
-

22,618
4,30,812
4,53,430
-

22,618
4,30,812
4,53,430
-

22,618
4,30,812
4,53,430
-

2,00,000

4,26,000
NIL
NIL
NIL

34,252
48,357
2,82709
NIL
2,57,463
2,57,463

27,704
56,416
84,120
2,57,463
3,12,632
5,70,095

27,200
64,476
91,676
5,70,095
3,61,754
9,31,849

11,082
64,476
75,558
9,31,849
3,77,872
13,09,721

3,022
64,475
67,498
13,09,721
3,85,933
16,95,654

Amount in Rs. Thousands as at the end of the

1st Yr.
2nd Yr.
3rd Yr.
4th Yr.
5th Yr.
21,300 3,04,502
6,50,932 10,54,544 14,74,274
2,83,202 3,46,430
4,03,612 4,19,730
4,27,790
3,04,502 6,50,932 10,54,544 14,74,274 19,02,064
1,06,500 1,06,500
1,06,500 1,06,500
1,06,500
2,49,843 1,93,427
1,28,951
64,478
6,60,845 9,50,859 12,89,995 16,45,249 20,08,564
2,25,900 2,25,900
2,25,900 2,25,900
2,25,900
22,618
45,236
67,854
90,472
1,13,090
2,03,282 1,80,664
1,58,046 1,35,428
1,12,810
2,00,100 2,00,100
2,00,100 2,00,100
2,00,100
2,57,463 5,70,095
9,31,849 13,09,721 16,95,654
6,60,845 9,50,859 12,89,995 16,45,219 20,08,564

Capital Account of Promoter

Surplus from operation
NET WORTH:
3.
Subsidy
4.
Composite loan
TOTAL LIABILITIES
1.
Gross Block
Less Depreciation
NET BLOCK
2.
Current Assets
3.
Cash & Bank Balance
TOTAL ASSETS
Suppliers of Machinery:
1. SKL(INDIA) ARC, 13,Girish Ghosh Lane HOWRAH- 711 107.
2. K.C.Trunk Factory, Fancy Bazar, Guwahati.
3. Oriental Machinery Ltd, Lake Road, Agartala- 799 001.
4. Bengal Machinery Corporation, 135, Canning Street, Kolkata- 700 001