PROJECT PROFILE ON ENGINEERING SCALE

A. INTRODUCTION & USES:

An engineer's scale is a tool for measuring distances and transferring

measurements at a fixed ratio of length. It is commonly made of plastic and is
just over 12 inches (305 mm) long, but with only 12 inches of markings, leaving
the ends unmarked so that so that the first and last measuring ticks do not wear
off. It is used in making engineering drawings, commonly called blueprints, in
scale. For example, "one-tenth size" would appear on a drawing to indicate a part
larger than the paper itself. It is not to be used to measure machined parts to see if
they meet specifications.

In scientific and engineering terminology, a device to measure linear distance and

create proportional linear measurements is called a scale. A device for drawing
straight lines is a ruler. In common usage both are referred to as a ruler.

B. MARKET POTENTIAL

Engineer scale is having an increased demand with development of more

engineering industries for the purpose of measuring items. The scales are used in
schools, science colleges, architects, drawing office & engineering workshops
and hence there is growing demand for this item.

C. Production Target:

It is proposed to manufacture 4,00,000 Nos of Engineering Scale per annum.

D. BASIS AND PRESUMPTION:

(i) The unit is expected to work at 75% efficiency on 8 hrs. Single shift basis for
25 working days in a month.

(ii) The full capacity utilisation will be achieved in three years. 70% in the first
year followed by 85% in the next year and the 100% in subsequent years.

(iii) Labour and wages mentioned as per prescribed minimum wages and the
proprietor is considered as a manager.

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(iv) Interest considered @ 12% in the project provide for recurring and non-
recurring investment.

(v) The cost of land, construction charges, cost of machinery and equipment, raw
materials and consumables other expenses etc. initiated in the profile are
based on the prices prevailing at the time of project preparation. Therefore,
they are subject to necessary changes from time to time based on local
conditions.

E. IMPLEMENTATION SCHEDULE:

Period Starting to
Activity
Completion
Survey for collection of data in respect of demand,
raw material, including power and fuel availability 0 1 Month
of technology, pollution control
1st
Arrangement for margin money 0
Months
Preparation of project document and registration 2nd
1st
and other clearance Months
3rd
Financial assistance 2nd
Months
4th
Selection of site and development of land 3rd
months
4th
Make shift office 3rd
Months
5th
Purchasing of machines & recruitment of staff 4th
Months
6th
Construction of building & selection of machinery 5th
Months
Installation of machinery & purchase of raw 7th
6th
materials Months
8th
Trial production 7th
Months

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F. TECHNICAL ASPECTS:

MANUFACTURING PROCESS
The Process involves cutting of acrylic sheets to required length and width,
polishing edges for parallel surface. The cut sheets are graduated according to the
required accuracy and number marking is done by the automated scale marking
machine. The surface is dried and cleaned. The finish polished scales are packed.

2. QUALITY STANDARDS AND SPECIFICATIONS:

Graduation marking must be uniform in depth and accuracy to 0.01 mm conform
to specification of BIS or other standard.

3. POLLUTION CONTROL:
These types of units are is not producing any effluents or any other polluting
materials. Therefore pollution control measures are not taken into account.

4. ENERGY CONSERVATION NEEDS:

General awareness is to be created for economic use of electricity at all
points. Capacitors may be used at suitable points for energy conservation. All
machinery and equipment should be properly lubricated and maintained so that
they consume less amount of power in use.

G. FINANCIAL ASPECT:

(i) Land & Building:

Land and building Rented Covered area 150 sq.mtrs. for Rs. 8,000/- per
month.

(ii) Fixed Capital on Plant & Machinery:

Qty. Value
SI.No. Description Ind/Imported
(Nos.) (Rs.)
Automated Scale Marking Machine
1. complete with accessories for Ind
graduation accuracy 0.01 mm 1 14,85,000
Bench type pantograph engraving Ind
2.
machine table size 16" 1 15,000

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 3. Linear Polishing machine Ind 1 8,000
Band saw bench model/ wheel 8" Ind
4.
rockwell 1 12,000
Bevel edges grinding machine bench Ind
5.
type wheel dia 8 " 1 18,000
Double ended bench grinder wheel Ind
6. 1
dia 6" 7,000
15,45,000
7.
TOTAL
Electrification & installation charges
8.
@ 10% of machinery cost 1,54,500
Office furniture, almirah, office
9. L.S
instruments etc. 20,000
17,19,500
10. Total Plant & M/c Cost

(iii) Pre-operative expenses @ 2.0 % -------------- 34,390

TOTAL FIXED CAPITAL (i+ii+iii) ----- 17, 53,890

4. WORKING CAPITAL (PERMONTH):

1. Staff & Labour Expenses:

(a) Administrative:
Rate Amount
SI.No. Description Nos.
(Rs.) (Rs.)
10,000 10,000
1 1
Manager
2 Skilled Workers 2 5,500 11,000
3 Semi skilled Workers 1 4,800 4,800
4 Helper 1 4,500 4,500
5 Total 30,300

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 6 Leave/ Benefits / Perquisite @ 15% of salary 4,545
7 Grand Total 34,845

II. Raw Materials (per month):

Value
SI.No. Description Qty.
(Rs.)
Acrylic Sheets of thickness 1/8" transparent or milky
1.
white 500Kg 72,500
2. Marking Ink, polishing, wheel buffing, clothes L.S 5,000
3. Packing Case & Box Cartons & Plastic Bags L.S 2,500
TOTAL 80,000

III. Utilities (per month):

Power @ 3.80/unit for 10 KW Rs 3,800

Water L.S Rs. 2000

IV. Other Contingent expenses (P.M.):

SI.No. Description Values (Rs.)

1. Rent 8,000
2. Postage and Stationery 500
3. Telephone 500
4. Repair and maintenance 500
5. Oils & Lubricants 2,500
6. Consumable stores 2,000
7. Transport charges 1,500
8. Insurance 500
9. Sales expenses 800
10. Misc Expenses 500

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 11. Total 17,300

V. Total recurring expenditure (per month):

1. Staff and labor 34,845
2. Raw material 80,000
3. Utilities 5,800
4. Other contingent expenses 17,300
1,37,945
Total

VI. Total working capital (3 months basis) 4,13,835

5. Total capital investment:

1. Machinery and equipment 17,53,890
2. Working Capital 4,13,835
Total 21,67,725

6. Financial Analysis:
1. Cost of Production (Per Year) :
1. Total recurring cost per year 16,55,340

2. Depreciation on plant and machinery @ 10% 1,54,500

3. Depreciation on office equipments @ 20% 4,000

4. Interest on total capital investment @ 12% 2,60,127

20,73,967
Total

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 2. Total Sales (per year):
Annual Production of 4,00,000 Engineering Scales
Total Annual sales 4,00,000 x 7.00 = Rs. 28,00,000
By sale of scrap (L.S) = Rs. 5,000
Total = Rs. 28,05,000

3. Net Profit (per year) Before tax

= Total sales – Cost of production
= 28,05,000 – 20,73,967 = 7,31,033

4. Profit Ratio:= Net profit x 100 / Total turn over

= 7,31,033 x 100 / 28,05,000 = 26.06 %

5. Rate of Return: = Net profit x 100 / Total Capital Investment

= 7,31,033 x 100 / 21,67,725 = 33.72%

6. Break Even Point:
a) Fixed cost (per year):
1. Rent 96,000
2. Interest @12 % 2,60,127
Depreciation of machinery & equipments, tools, fixtures
3.
@10 % 1,54,500
4. Depreciation of office equipment @ 20 % 4,000
5. 40% of salaries and wages 1,67,256
6. 40% of other expenses including utilities and excluding rent 72,480
Total fixed cost (FC) 7,54,363

BEP = FC x 100/ FC + Profit

= 7,54,363 x 100 / ( 7,54,363 + 7,31,033 ) = 50.79 %

ADDRESSES OF MACHINERY & EQUIPMENT SUPPLIERS:

1. M/s. Batliboi & Co., Parliament Street, New Delhi-110001
2. M/s. Ashoka Machine Tools Corpn., A-15, Mayapuri Indl. Area,
New Delhi.
3. M/s. Amteep Machine Tools (P) Ltd., 17/7, Mathura Road,
Faridabad.

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 4. M/s Rita Pad Printing Systems Ltd. Plot No. 44 & 45 , Sector - 18,
Gurgaon

NAMES AND ADDRESSES OF RAW MATERIALS SUPPLIERS:

Raw material can be purchased from the local suppliers available in the
market.