Marketing

Agricultural implements and hand tools will have good demand and scope. The products can be marketed trhough out the state and neighbouring states.

Installed Capacity ( in Nos)

1. Agricultrual Implements - 20,000

2. Cuttleries - 40,000

3. Hand Tools - 20,000

Land & Building

Rented

Machinary & Equipments

Items Rate Quantity Value
Welding Set 01
Buffing Motor 01
Drilling Machine 01
1 Hp Motor 01
Bench Grinder 01

Hand Drilling Machine

 01
Hand Grinder 01
Bench vise 01

Pannel Board & Electrification

Total Sl No.1 +9 Sub-Total

 1,50,000

Miscelleneous Assets(3)

 25,000

Preliminary & Pre - Operative Expenses(4)

 5,000

Total Fixed Capital (2+3+4)

 1,80,000

Working Capital Recurring Expenses /Month

Requirement for Raw Materials at 50% of capacity utilization –

60,000/-

Wages

16,000/-

Utilities & Other Expenses

14,000/- Total ---90,000/-

Working Capital requirement

1,50,000/- (Two months raw Material cost and one month work expenses are estimated as Working Capital)

Total Cost of Project

Sl.No Items Amount
1

Land & Building

 Rented
2

Machinary & Equipments

 1,80,000
3

Working Capital

 1,50,000
Total 3,30,000

Means of Finance

Sl.no Items Amount
1 Own fund 1,14,000
2

Term Loan

 1,26,000
3

Working Capital

 90,000
Total 3,30,000

Monthly Profitability Statement

A. Sales 1,10,000

B. Cost of Production

Sl.No. Particulars Amount
1 Raw Materials 60,000
2 Wages 16,000
3 Utilities & other expenses 14,000
4 Repairs 2% on Machinary 250
5 Depreciation 10% of Fixed Assets 1,458
6 Insurance 125
Total 91,833

C. Gross Profit (A-B) ---------18,167

D. Financial Expenses-- Interest on Loan ----13% 2,340

E. Administrative Expenses-- 1% on sales----1,100

F. Selling Expenses 3% sales------ 3,300

G. Total of(D+ E+F) --------6,740

H. Net Profit before tax (C-G)----11,427

I . Annual Profit------1,37,124

J. Return on Investment-----41.55%