PROJECT REPORT

OF

CALCULATOR MANUFACTURING
UNIT

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Calculator manufacturing unit.

The objective of the pre-feasibility report is primarily to facilitate potential

entrepreneurs in project identification for investment and in order to serve
his objective; the document covers various aspects of the project concept
development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your
requirement. We can also prepare project report on any subject as per your
requirement.]

Lucknow office: Sidhivinayak

Building-27/1/13,Gokhally Marg
Lucknow-226001
Delhi Office: Multidisciplinary
Training Center,Gandhi Darshan
Rajghat, New Delhi-110002
[email protected]
Contact:+91 7526000333,444,555
 PROJECT AT GLANCE

1 Name of Proprietor/Director XXXXXXXX

2 Firm Name XXXXXXXX
3 Registered Address XXXXXXXX
4 Nature of Activity XXXXXXXX
5 Category of Applicant XXXXXXXX
6 Location of Unit XXXXXXXX
7 Cost of Project 19.00 Rs. In Lakhs
8 Means of Finance
i) Own Contribution 1.90 Rs. In Lakhs
ii) Term Loan 12.60 Rs. In Lakhs
iii) Working Capital 4.50 Rs. In Lakhs
9 Debt Service Coverage Ratio 2.32
10 Break Even Point 0.40
11 Power Requiremnet 20 KW
12 Employment 9 Persons
13 Major Raw Materials Plastic,Electrical components
and other components.

14 Details of Cost of Project & Means of Finance

Cost of Project Amount in Lacs

Particulars Amount
Land Owned/Leased
Building & Civil Work Owned/Leased
Plant & Machinery 12.50
Furniture & Fixture 0.50
Other Misc Assets 1.00
Working Capital Requirement 5.00
Total 19.00
Means of Finance
Particulars Amount
Own Contribution 1.90
Term Loan 12.60
Working capital Loan 4.50
Total 19.00
1. INTRODUCTION

A calculator is typically a portable electronic device used to perform calculations, ranging from
basic arithmetic to complex mathematics. Calculators are extensively used in offices, banks,
shops, departmental stores & various other establishments. Scientific calculators are used by
students & research workers. These calculators use on an integrated circuit. Generally, these
calculators could be placed in the following categories: 1. Pocket calculators 2. Desk Top
calculators 3. Desktop-type with the printer. These categories could be further subdivided
based on no. of digits, type of display i.e. LCD/Fluorescent, etc., by memory function, power
i.e. Single/Dual/Triple power operated, etc. Calculators contain a keyboard with buttons for
digits and arithmetical operations; some even contain "00" and "000" buttons to make larger or
smaller numbers easier to enter. Most basic calculators assign only one digit or operation on
each button; however, in more specific calculators, a button can perform multi-function
working with key combinations. Calculators usually have liquid-crystal displays (LCD) as
output in place of historical light-emitting diode (LED) displays and vacuum fluorescent
displays (VFD). Calculators also can store numbers in computer memory. Basic calculators
usually store only one number at a time; more specific types can store many numbers
represented in variables.
2. PRODUCT DESCRIPTION

2.1 PRODUCT USES

Electronic calculators are extensively used in offices, Banks, hops, Departmental stores,
Students, Educational bodies and various other establishments. Scientific calculators are
used by students and research workers.

2.2 RAW MATERIAL REQUIREMENT

2.2.1 Plastic: Plastic granules can be used to form an enclosure shell/case for an electronic
calculator. Most PP or PVC granules can be used to form a case for this product.
Because of its rigidity, melting temperature point and other characteristics are
suitablefor forming cases for the product.

2.2.2 Electrical components: Controller IC, Diodes, Memory chips, Sensors, Customized

circuit board, LCD, Battery, Connectors, etc. Circuit board will come with printed

contact points on it. An LCD is used to display output or for showing you the

numbers you type in and the results of your calculations. Memory chips are used to

store previous outputs. Lithium cell or AA battery, the type of batteries used

depends on the calculator’s features.

 2.2.3 Other: Silicone rubber Keypad, Screws, Soldering flux, Solder wire and paste, Battery
contacts, Wires, etc.
Pressing a button on a silicone rubber keypad forces the webbing material to deform,
at which point the switch's conductive contact touches the PCB contact. When this
occurs, the silicone rubber keypad identifies and registers this action as a button press.

2.3 MANUFACTURING PROCESS

This process can be broken down into the following steps:
1. Raw material procurement
2. Injection molding- Plastic molding
3. PCB assembly
4. Assembly
 5. Testing

Raw material procurement

To ensure complete quality control, all raw materials will be checked strictly as per
established quality standards and requirements. Sorting of raw material will be done. In the
sorting procedure, the different types of materials or parts will be sorted out like plastic,
electrical components, etc. It will be separated and the material will be stored; dust free, neat,
and clean environment is a must, for which an air handling unit is required, and later on, it will
dispatch to the assembly line.

Injection molding- Plastic molding

Plastic molding is done by using an injection molding machine. The plastic
casing/cabinet used for calculator construction is typically injection molded using plastic
granules. In this process; Firstly granules are fed via a hopper into a heated barrel. Where the
plastic will be melted at the set temperature. The melted plastic is then injected through a nozzle
into a mold cavity where it cools and hardens to the configuration of the cavity and the formed
plastic parts will be ejected out. The plastic case is used to provide a covering for the electric
components of the calculator for protection and safe handling. This molded case will be a rigid,
strong, insulated housing in which the other components will be mounted later. Enclosure
cases, buttons, etc. required parts will be formed using the plastic molding process. Attention
to detail and design results in a more refined finished product and also user satisfaction. The
design of the keys is like a concave surface; to fit the curvature of fingers. This shape of the
keys makes a considerable difference in comfort and results in a more positive user experience.
Later on, using pad printing machine numbers or signs will be printed on plastic keys (buttons).
PCB assembly
Assembly for calculator PCB will be done in the PCB assembly unit. The circuit board
has a two-layer board with a green solder mask and one side has a contact point printed on it.
The PCB is comprised entirely of surface-mount components and some of them appear to be
hand-placed. Firstly on customized bare board solder paste will be applied using a printer. Here
stencil is used which a thin piece of stainless steel with cut holes. It helps to solder paste to go
on the pads, where the components are going to be soldered down. To get the right amount of
solder paste in all the places solder paste inspection machine is used. This machine checks
whether the solid paste printed by the printing machine meets the IPC standards. It will check
the thickness and amount of solder paste, and may lead to defective products. The inspection
systems within solder paste printers use 2D technology while devoted SPI machines utilize 3D
technology to enable a more thorough inspection including solder paste volume per pad and
not simply print region. When the printed PCB has been affirmed to have the right amount of
solder paste applied it moves into the next part of the manufacturing process which is
component placement. Pick and place machine is used for component placement. Each
component will be picked from its packaging using either a vacuum or gripper nozzle, checked
by the vision system, and placed in the programed location at high speed. Following the
component placement process, it is important to verify that no mistakes have been made and
that all parts have been correctly placed before reflow soldering. The most ideal method of
doing this is by utilizing an AOI machine to make checks like component presence, type/value,
and polarity. After pre reflow automated optical inspection reflow process will be done; reflow
soldering is a process in which a board will be heated to attach electrical components to contact
pads. Further Post-Reflow Automated Optical Inspection (AOI) will be done, where the
surface mount assembly process is to again check that no mistakes have been made by using
an AOI machine to check solder joint quality. Some components will be placed and soldered
manually. Assembled PCB will dispatch for testing and later it will be used in the final product
assembly. Components and the size of the PCB can be varied as per product quality and by
manufacturers. Later after the final assembly, PCB will be soldered with a power source and
this soldering process will be done manually.
Assembly
Molded plastic parts and assembled PCB with other require components will be
collected at the assembly line. Buttons will be placed with an attached keypad rubber
membrane in key slots. The membrane will be placed in such a manner that it will make contact
with the circuit board contact point. Mounting of PCBs in the cabinet along with the LCD will
be done. PCB will be screwed with the plastic case. Connection for the same will be made
using connectors. The display will be connected to the circuit board using an elastomeric
connector wire. And this display system and PCB will be covered with a cover. Battery contacts
and cell will be fixed. And a connection for the power source to the PCB will be made by
soldering wire.
Testing
 Endurance test, Durability test
 Response time, Accuracy, Keys On-off testing.
 PCB testing- ICT and Functional Test- to determine board’s final pass/fail status.
 3. PROJECT COMPONENTS

3.1 Land /Civil Work

The land require for this manufacturing unit will be approx. around 2000-2500 square feet.

We have not considered the cost of Land purchase & Building Civil work in the project. It is
assumed that land & building will be on rent & approx. rental of the same will be Rs.20000-
25000 per month.

3.2 Plant & Machinery

 Injection molding machine

The calculator case/housing is being made from plastic granules. Firstly granules are fed
via a hopper into a heated barrel. Where the plastic will be melted at the set temperature. The
melted plastic is then injected through a nozzle into a mold cavity where it cools and hardens
to the configuration of the cavity and the formed plastic parts for the calculator will be ejected
out.
 Solder Paste printer

The Solder Paste printing process is the common way of applying solder paste onto a PCB,
which is performed by printing solder paste through apertures in a stencil.

 Pick and place machine

Pick and place machines used for placing surface mount components as accurately and
quickly as possible.
 Reflow machine
Reflow soldering is a process in which a solder paste will be heated and electrical
components will be attached to contact pads.

 SPI machine
Solder Paste Inspection is a key technique used in the manufacture and test of PCBs. SPI
machine enables fast and accurate inspection of the solder paste on PCBs to ensure that the
quality of paste on PCB is printed correctly and without manufacturing faults.

 AOI machine- Automated optical inspection

The use of an AOI machine is to make checks such as component presence, type/value, and
polarity while PCB assembly.
  Temperature-controlled soldering station
Soldering iron is a hand tool used to solder components on PCB. Here it can be used to
solder battery contacts points with PCB.

 Printing machines
Pad printing machines can be used to print signs on plastic keys. Laser printing machines
can be used to print the production company logo and other related information on the product.
 Testing Equipment’s

i. Oscilloscope- This equipment is used to test and display voltage signals as

waveforms, visual representations of the variation of voltage over time.

ii. DC power supply - DC power supplies are power supplies that produce an
output DC voltage.

iii. Multimeter - A multimeter is mainly used to measure electrical characteristics

of voltage, current, and resistance. It can also be used to test continuity between
two points in an electrical circuit.
 Tools: While assembling the product these tools will be required- Screwdriver,
Twizzers, Wirecutter, Wire strippers,
4. LICENSE & APPROVALS

 GST
 NOC from Fire Department.
 NOC From Pollution Department (if applicable)
 Udyam Registration is required.
 BIS certification
 Trademark (optional)
PROJECTED BALANCE SHEET (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Liabilities
Capital
Opening Balance 2.95 4.53 7.02 9.68
Add:‐ Own Capital 1.90
Add:‐ Retained Profit 2.80 3.83 5.49 6.66 7.53
Less:‐ Drawings 1.75 2.25 3.00 4.00 5.00

Closing Balance 2.95 4.53 7.02 9.68 12.21

Term Loan 11.20 8.40 5.60 2.80 ‐
Working Capital Limit 4.50 4.50 4.50 4.50 4.50
Sundry Creditors 1.77 2.32 2.61 3.11 3.45
Provisions & Other Liabilities 0.50 0.75 0.90 1.08 1.30
TOTAL : 20.92 20.50 20.63 21.17 21.46
Assets
Fixed Assets ( Gross) 14.00 14.00 14.00 14.00 14.00
Gross Depriciation 2.08 3.84 5.34 6.62 7.71
Net Fixed Assets 11.93 10.16 8.66 7.38 6.29

Current Assets
Sundry Debtors 1.54 1.56 2.04 2.60 2.87
Stock in Hand 5.34 6.23 6.99 7.79 8.62
Cash and Bank 1.62 1.81 2.04 2.41 2.43
Loans and advances/other current assets 0.50 0.75 0.90 1.00 1.25
TOTAL : 20.92 20.50 20.63 21.17 21.46
PROJECTED PROFITABILITY STATEMENT (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
Capacity Utilisation % 50% 55% 60% 65% 70%
SALES
CALCULATOR 65.84 78.05 87.55 97.44 107.72

Total 65.84 78.05 87.55 97.44 107.72

COST OF SALES
Raw material cost 40.92 46.46 52.27 58.34 64.68
Electricity Expenses 3.36 3.70 4.07 4.47 4.92
Depreciation 2.08 1.77 1.50 1.28 1.09
Wages & labour 6.24 6.86 7.55 8.31 9.14
Repair & maintenance 0.33 0.78 1.05 0.97 1.08
Consumables 0.99 1.17 1.31 1.46 1.62
Packaging cost 1.65 1.17 0.88 0.97 1.08
Cost of Production 55.56 61.91 68.63 75.81 83.60
Add: Opening Stock ‐ 3.29 3.90 4.38 4.87
Less: Closing Stock 3.29 3.90 4.38 4.87 5.39
Cost of Sales 52.27 61.30 68.16 75.32 83.08
GROSS PROFIT 13.57 16.75 19.39 22.12 24.64
GROSS PROFIT RATIO 20.61% 21.46% 22.15% 22.70% 22.87%
Salary to Staff 4.44 5.11 5.87 6.75 7.77
Interest on Term Loan 1.24 2.00 0.78 0.47 0.17
Interest on working Capital 0.50 0.50 0.50 0.50 0.50
Rent 3.00 3.30 3.63 3.99 4.39
Selling & Administration Expenses 1.58 1.95 2.85 3.17 3.50
TOTAL 10.75 12.85 13.62 14.88 16.32
NET PROFIT 2.82 3.90 5.76 7.24 8.32
Taxation 0.02 0.07 0.28 0.57 0.79
PROFIT (After Tax) 2.80 3.83 5.49 6.66 7.53
NET PROFIT RATIO 4.28% 5.00% 6.58% 7.43% 7.72%
PROJECTED CASH FLOW STATEMENT (in Lacs)

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
SOURCES OF FUND
Own Margin 1.90
Net Profit 2.82 3.90 5.76 7.24 8.32
Depriciation & Exp. W/off 2.08 1.77 1.50 1.28 1.09
Increase in Cash Credit 4.50 ‐ ‐ ‐ ‐
Increase In Term Loan 12.60 ‐ ‐ ‐ ‐
Increase in Creditors 1.77 0.55 0.29 0.50 0.34
Increase in Provisions & Other liabilities 0.50 0.25 0.15 0.18 0.22

TOTAL : 26.16 6.47 7.71 9.19 9.96

APPLICATION OF FUND
Increase in Fixed Assets 14.00
Increase in Stock 5.34 0.89 0.77 0.80 0.83
Increase in Debtors 1.54 0.02 0.48 0.56 0.27
Increase in loans and advances 0.50 0.25 0.15 0.10 0.25
Repayment of Term Loan 1.40 2.80 2.80 2.80 2.80
Drawings 1.75 2.25 3.00 4.00 5.00
Taxation 0.02 0.07 0.28 0.57 0.79
TOTAL : 24.54 6.28 7.47 8.83 9.94

Opening Cash & Bank Balance ‐ 1.62 1.81 2.04 2.41

Add : Surplus 1.62 0.18 0.23 0.37 0.02
Closing Cash & Bank Balance 1.62 1.81 2.04 2.41 2.43
CALCULATION OF D.S.C.R

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

CASH ACCRUALS 4.87 5.60 6.99 7.94 8.62

Interest on Term Loan 1.24 2.00 0.78 0.47 0.17
Total 6.11 7.59 7.77 8.42 8.79

REPAYMENT
Instalment of Term Loan 1.40 2.80 2.80 2.80 2.80
Interest on Term Loan 1.24 2.00 0.78 0.47 0.17

Total 2.64 4.80 3.58 3.27 2.97

DEBT SERVICE COVERAGE RATIO 2.32 1.58 2.17 2.57 2.96

AVERAGE D.S.C.R. 2.32
 REPAYMENT SCHEDULE OF TERM LOAN
Interest 11.00%
Closing
Year Particulars Amount Addition Total Interest Repayment Balance
ist Opening Balance ‐
1st month 12.60 12.60 ‐ ‐ 12.60
2nd month 12.60 ‐ 12.60 0.12 ‐ 12.60
3rd month 12.60 ‐ 12.60 0.12 ‐ 12.60
4th month 12.60 ‐ 12.60 0.12 ‐ 12.60
5th month 12.60 ‐ 12.60 0.12 ‐ 12.60
6th month 12.60 ‐ 12.60 0.12 ‐ 12.60
7th month 12.60 ‐ 12.60 0.12 0.23 12.37
8th month 12.37 ‐ 12.37 0.11 0.23 12.13
9th month 12.13 ‐ 12.13 0.11 0.23 11.90
10th month 11.90 ‐ 11.90 0.11 0.23 11.67
11th month 11.67 ‐ 11.67 0.11 0.23 11.43
12th month 11.43 ‐ 11.43 0.10 0.23 11.20
1.24 1.40
2nd Opening Balance
1st month 11.20 ‐ 11.20 0.10 0.23 10.97
2nd month 10.97 ‐ 10.97 0.10 0.23 10.73
3rd month 10.73 ‐ 10.73 0.10 0.23 10.50
4th month 10.50 ‐ 10.50 0.10 0.23 10.27
5th month 10.27 ‐ 10.27 0.09 0.23 10.03
6th month 10.03 ‐ 10.03 1.00 0.23 9.80
7th month 9.80 ‐ 9.80 0.09 0.23 9.57
8th month 9.57 ‐ 9.57 0.09 0.23 9.33
9th month 9.33 ‐ 9.33 0.09 0.23 9.10
10th month 9.10 ‐ 9.10 0.08 0.23 8.87
11th month 8.87 ‐ 8.87 0.08 0.23 8.63
12th month 8.63 ‐ 8.63 0.08 0.23 8.40
2.00 2.80
3rd Opening Balance
1st month 8.40 ‐ 8.40 0.08 0.23 8.17
2nd month 8.17 ‐ 8.17 0.07 0.23 7.93
3rd month 7.93 ‐ 7.93 0.07 0.23 7.70
4th month 7.70 ‐ 7.70 0.07 0.23 7.47
5th month 7.47 ‐ 7.47 0.07 0.23 7.23
6th month 7.23 ‐ 7.23 0.07 0.23 7.00
7th month 7.00 ‐ 7.00 0.06 0.23 6.77
8th month 6.77 ‐ 6.77 0.06 0.23 6.53
9th month 6.53 ‐ 6.53 0.06 0.23 6.30
10th month 6.30 ‐ 6.30 0.06 0.23 6.07
11th month 6.07 ‐ 6.07 0.06 0.23 5.83
12th month 5.83 ‐ 5.83 0.05 0.23 5.60
0.78 2.80
4th Opening Balance
1st month 5.60 ‐ 5.60 0.05 0.23 5.37
2nd month 5.37 ‐ 5.37 0.05 0.23 5.13
3rd month 5.13 ‐ 5.13 0.05 0.23 4.90
4th month 4.90 ‐ 4.90 0.04 0.23 4.67
5th month 4.67 ‐ 4.67 0.04 0.23 4.43
6th month 4.43 ‐ 4.43 0.04 0.23 4.20
7th month 4.20 ‐ 4.20 0.04 0.23 3.97
8th month 3.97 ‐ 3.97 0.04 0.23 3.73
9th month 3.73 ‐ 3.73 0.03 0.23 3.50
10th month 3.50 ‐ 3.50 0.03 0.23 3.27
11th month 3.27 ‐ 3.27 0.03 0.23 3.03
12th month 3.03 ‐ 3.03 0.03 0.23 2.80
0.47 2.80
5th Opening Balance
1st month 2.80 ‐ 2.80 0.03 0.23 2.57
2nd month 2.57 ‐ 2.57 0.02 0.23 2.33
3rd month 2.33 ‐ 2.33 0.02 0.23 2.10
4th month 2.10 ‐ 2.10 0.02 0.23 1.87
5th month 1.87 ‐ 1.87 0.02 0.23 1.63
6th month 1.63 ‐ 1.63 0.01 0.23 1.40
7th month 1.40 ‐ 1.40 0.01 0.23 1.17
8th month 1.17 ‐ 1.17 0.01 0.23 0.93
9th month 0.93 ‐ 0.93 0.01 0.23 0.70
10th month 0.70 ‐ 0.70 0.01 0.23 0.47
11th month 0.47 ‐ 0.47 0.00 0.23 0.23
12th month 0.23 ‐ 0.23 0.00 0.23 ‐
0.17 2.80
DOOR TO DOOR 60 MONTHS
MORATORIUM PERIOD 6 MONTHS
REPAYMENT PERIOD 54 MONTHS
 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN
assume no financial liability to anyone using the content for any purpose. All the
materials and content contained in Project report is for educational purpose and
reflect the views of the industry which are drawn from various research material
sources from internet, experts, suppliers and various other sources. The actual
cost of the project or industry will have to be taken on case to case basis
considering specific requirement of the project, capacity and type of plant and
other specific factors/cost directly related to the implementation of project. It is
intended for general guidance only and must not be considered a substitute for a
competent legal advice provided by a licensed industry professional. SAMADHAN
hereby disclaims any and all liability to any party for any direct, indirect, implied,
punitive, special, incidental or other consequential damages arising directly or
indirectly from any use of the Project Report Content, which is provided as is, and
without warranties.