SSI Report on Plywood Manufacturing

ACKNOWLEDGEMENT I owe my sincere and heartiest gratitude to those respondents whose co-operation and suggestions have given me support to accomplish the project report timely and successfully. The present work is an effort to throw some light on “Plywood Manufacturing Industry”. The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people. I owe my thanks to Dr. (Mrs.) M.S.Deshpspande Without her guidance it would have been impossible to complete the project. I owe my sincere thanks to her for this esteem guidance, keen interest, constant inspiration and valuable guidance. I am highly obliged to Dr. J.V.Joshi sir Head of the Department for providing necessary facilities and valuable guidance time to time. I take this opportunity to thanks Dr (Mrs.) L.N.Laturkar madam and the entire faculty member o the SCMS family for their cooperation and guidance for the completion of the project. I would also like to thank my friends Santosh, Jitu, Sandip, Umesh, Arif, Mukesh, Ishan, Deepak. They helped me to keep myself jolly during my project.

Dated:

SANJAY HINGANKAR

1

Project Profiles at a glance 1. Name of the Project:

“Plywood Manufacturing Industry”

2 .Location within State/Country:

MIDC, Hingoli. Dist: Hingoli State: Maharashtra.

3 .Nearest Rail, Road & Sea Connection

:

i) Nearest Rail Head for units to be located at Hingoli District Head quarter ii) Nearest Road connection for all the units are State Highway iii) Nearest Sea connection for all units is Mumbai Sea Port

4 .Estimated Capital Cost of the Project

5 .Capital Equipment

: The total project cost is Rs.1,46,49,500.00

:

(i) Power operated machines like Hydraulic Hot

.

Press, Steam Boiler. :

6 .Raw materials

:

Hardwood, Softwood & Adhesives.

7 .Environment Impact

:

The project is an environment friendly activity. There will be no ecological imbalance and Pollution hazard to the localities because of the project. The project may help in checking the destruction of timber forest.

8 .Foreign Exchange Cost component: Nil

10. Policy Framework applicable to the 2

Project

: State Industrial Policy, Industrial Policy of NER & Government of India are applicable to the above project, vision 20-20 (development of the NE states)

12. Time-frame for selection & completion of selection of project

: Within a period of 12(Twelve) months.

13. Government Incentive packages applicable to the Project

:

Capital investment, interest, power, transport subsidies, etc. 2) State Government Guarantee

14. Other General Information

: The competitive advantage of the project over other Plywood production units in the State shall be in terms of volume of production, quality and price because of the installation of improved type machinery. Advantages over other units are due to the availability of skilled manpower, adequate Raw materials resources as well as high market potentials, security environment to be created by the State Government especially for the above project etc.

3

INTRODUCTION:Hingoli is a place on the border of Marathwada and Vidarbha region. Marathwada is rich of agriculture product like Soyabin, cotton and Turdal. Vidharbha is rich of Rice. Vidarbha region is also attached to Madhya Pradesh which has Large Forest area. The Hardwood and Softwood is the raw material required for this project. The Hardwood i.e. raw material of trees will be bought from Vadarbha. Softwood will be collected from both Marathwada and Vidarbha. The softwood is Rice husk, Cotton waste and Soyabin waste. The raw material is easily available in this region and hence, the project location is selected here. Hingoli is connected to south Maharastra and east Maharastra by means of roads and railway, Hence easy transportation. The making of Plywood is the most universal spread manufacturing process all over. The process includes making log, cutting, vineer preparation and plywood sheets. The high quality adhesive is being used. This industry has carved for itself an important place among the Plywoods of the State. It would provides fulltime employment to the labors and skilled workers. This will help the rural people of this region as they are getting paid for the agriculture waste instead of burning it and development of both agriculture and industry as well.

4

VISION OF THE PROJECT:“Customer Satisfaction’- by providing high quality in a professional and reliable manner through merit shop philosophy, allowing it to be competitive, adaptable and creative”

MISSION OF THE PROJECT:•

To provide jobs to rural skillful employees.

•

To develop the economy of the region.

•

To popular eco friendly products.

•

To obtain maximum growth with minimum investment.

•

To use the modern technology to the plywood industries.

5

SELECTION OF THE PROJECTS:The main reasons that encourage me to select this project are given as follows as 1. The main raw materials for the industry, i.e. softwood and hardwood of various types are abundantly available throughout the State. 2. Government policies beneficial to this project. 3. I am interested in the plywood manufacturing industry. 4. The local market not any plywood industry. 5. Today plywood demand increases day by day. 6.

The industry has considerable scope for development and various new products suited to modern tastes can be manufactured out of Trees.

6

History and Origin Plywood has it origins in laminating veneers around 3,500 years ago in Egypt during the days of the Pharoahs. The early Greeks and Romans also used veneers and plywood mainly for furniture. From the mid 1800’s ‘modern’ plywoods were utilised in pianos, furniture and tea chests. Plywood came of age as a versatile construction material in the 1930’s when water resistant resins were used as glues giving plywood longevity and integrity. Australian plywood manufacture commenced in Melbourne in 1911 but the two plants closed after a few years of operation. Around 1914 plywood manufacture commenced in Woolloongabba, Brisbane. Thereafter Brisbane became the main centre of plywood manufacturing activity with the 10 mills producing about two thirds of all Australian production, thus making this city the logical base for the Plywood Association of Australia. The Australian industry expanded around the country after the second World War to the stage where in 1960 there were 63 mills. Around this time the local industry was under threat from imports, and other panel products, so the industry invested heavily in CSIRO research to better understand the manufacturing process and improve productivity. In 1960 the mills used timber from indigenous forests with around 80% of the production being for interior use. Today, the nine, on average much larger mills use mainly plantation timber with around 90% of the plywood produced being for structural applications. As Australasian plywood can be used in critical structural applications where the costs of failure can be high, there is a requirement for high reliability combined with consistent quality. This is provided by the Plywood Association of Australia’s third party audited, process control based, industry wide quality control program. Thus the PAA quality brand permits easy identification and assures the customer the plywood is a quality product and meets the relevant Standard.

7

MARKET POTENTIAL AND COMPETITION Plywood products always have its demand in the market. The products are eco- friendly and cheap as compared to the other plastic products. The different Plywood products have different categories of customers. The Plywood products like furniture generally popular among the middle class people of the regions. MY POTENTIAL CUSTOMERS ARE AS FOLOWS AS •

Furniture manufacturing company

•

Retailers of the Plywood sheets

•

Government institutions like Railway, State Transport

COMPETITOR •

Shalini plywood pvt. Ltd. Waluj, Auarangabad.

•

Lakshmi plywood, Nagpur.

•

Kitply Industries Ltd, Nagpur.

COMPANY LOGO:

8

MARKETING CHANNELS:The marketing channels plays important role in the distribution of the products to reach the potential customers. The selection of the marketing channels is also important .so choose my marketing channels as follows as Wholesaler & Distributor: These People working as a company partner because they are giving place our product. Industrial Merchants: The registration with the trading companies like India mart will also be the marketing channel.

9

LEGAL FORMALITIES for the starting a SSI unit , every unit has some legal formalities to complete for starting a new business or to dissolve any industries. Here depicted some legal aspects which are necessary to be completed by entrepreneurs. 1. No objection letters DIC. 2. Approval letter from DIC. 3. Power sanction assurance letter from Mahavitaran

4. Certification of water supply. 5. Application for Telephone. 6. S.S.I Unit Registration. 7. Octroi Exemption letter from Municipal council. 8. Registration for sales Tax. 9. Registration of central Sales Tax. 10. Application for loan to SBI & IDBI, Hingoli

11. Certificate from industrial pollution Office.

10

Plant location:The plant is located at following address MIDC,Hingoli TALUKA –Hingoli DIST –Hingoli STATE- Maharashtra,PIN-431513 The factors influenced to choose the plant layout are as follows as 1. Availability of raw materials:Hardwood, Softwood is easily available nearby villages at very cheap rate. The transportation cost is also very less. 2. Availability 0f skilful labour force:The craftsmen are easily available as many of the worker engaged in this business for years together. 3. Good transportation facilities:•

The place is well connected to the State Highways .

•

The place only 10 K.M away from the Hingoli railway station.

4. Availability of the power and water supply: The power supplied by the Mahavitaran, at the rate of Rs.6 for the commercial use. The water is available from the natural sources like ponds and rivers.

11

PICTORIAL REPRESENTATION OF THE PLANT LAY OUT:-

Entry gate

Corporate office

I

Workshop Inventories store

Canteen

scrapsroom

Toilets WorkshopCcccccccc 12

Raw Materials The outer layers of plywood are known respectively as the face and the back. The face is the surface that is to be used or seen, while the back remains unused or hidden. The center layer is known as the core. In plywoods with five or more plies, the inter-mediate layers are known as the crossbands. Plywood may be made from hardwoods, softwoods, or a combination of the two. Some common hardwoods include ash, maple, mahogany, oak, and teak. The most common softwood used to make plywood in the United States is Douglas fir, although several varieties of pine, cedar, spruce, and redwood are also used. Composite plywood has a core made of particleboard or solid lumber pieces joined edge to edge. It is finished with a plywood veneer face and back. Composite plywood is used where very thick sheets are needed. The type of adhesive used to bond the layers of wood together depends on the specific application for the finished plywood. Softwood plywood sheets designed for installation on the exterior of a structure usually use a phenol-formaldehyde resin as an adhesive because of its excellent strength and resistance to moisture. Softwood plywood sheets designed for installation on the interior of a structure may use a blood protein or a soybean protein adhesive, although most softwood interior sheets are now made with the same phenol-formaldehyde resin used for exterior sheets. Hardwood plywood used for interior applications and in the construction of furniture usually is made with a ureaformaldehyde resin. Some applications require plywood sheets that have a thin layer of plastic, metal, or resin-impregnated paper or fabric bonded to either the face or back (or both) to give the outer surface additional resistance to moisture and abrasion or to improve its paintholding properties. Such plywood is called overlaid plywood and is commonly used in the construction, transportation, and agricultural industries.

13

Other plywood sheets may be coated with a liquid stain to give the surfaces a finished appearance, or may be treated with various chemicals to improve the plywood's flame resistance or resistance to decay.

Plywood Classification and Grading There are two broad classes of plywood, each with its own grading system. One class is known as construction and industrial. Plywoods in this class are used primarily for their strength and are rated by their exposure capability and the grade of veneer used on the face and back. Exposure capability may be interior or exterior, depending on the type of glue. Veneer grades may be N, A, B, C, or D. N grade has very few surface defects, while D grade may have numerous knots and splits. For example, plywood used for subflooring in a house is rated "Interior C-D". This means it has a C face with a D back, and the glue is suitable for use in protected locations. The inner plies of all construction and industrial plywood are made from grade C or D veneer, no matter what the rating. The other class of plywood is known as hardwood and decorative. Plywoods in this class are used primarily for their appearance and are graded in descending order of resistance to moisture as Technical (Exterior), Type I (Exterior), Type II (Interior), and Type III (Interior). Their face veneers are virtually free of defects.

Sizes Plywood sheets range in thickness from. 06 in (1.6 mm) to 3.0 in (76 mm). The most common thicknesses are in the 0.25 in (6.4 mm) to 0.75 in (19.0 mm) range. Although the core, the crossbands, and the face and back of a sheet of plywood may be made of different thickness veneers, the thickness of each must balance around the center. For example, the face and back must be of equal thickness. Likewise the top and bottom crossbands must be equal.

14

The most common size for plywood sheets used in building construction is 4 ft (1.2 m) wide by 8 ft (2.4 m) long. Other common widths are 3 ft (0.9 m) and 5 ft (1.5 m). Lengths vary from 8 ft (2.4 m) to 12 ft (3.6 m) in 1 ft (0.3 m) increments. Special applications like boat building may require larger sheets.

The Manufacturing Process The trees used to make plywood are generally smaller in diameter than those used to make lumber. In most cases, they have been planted and grown in areas owned by the plywood company. These areas are carefully managed to maximize tree growth and minimize damage from insects or fire. Here is a typical sequence of operations for processing trees into standard 4 ft by 8 ft (1.2 m by 2.4 m) plywood sheets:

The logs are first debarked and then cut into peeler blocks. In order to cut the blocks into strips of veneer, they are first soaked and then peeled into strips.

Felling the trees •

Selected trees in an area are marked as being ready to be cut down, or felled. The felling may be done with gasoline-powered chain saws or with large hydraulic shears mounted on the front of wheeled vehicles called fellers. The limbs are removed from the fallen trees with chain saws.

15

•

The trimmed tree trunks, or logs, are dragged to a loading area by wheeled vehicles called skidders. The logs are cut to length and are loaded on trucks for the trip to the plywood mill, where they are stacked in long piles known as log decks.

Preparing the logs •

As logs are needed, they are picked up from the log decks by rubber-tired loaders and placed on a chain conveyor that brings them to the debarking machine. This machine removes the bark, either with sharp-toothed grinding wheels or with jets of high-pressure water, while the log is slowly rotated about its long axis.

•

The debarked logs are carried into the mill on a chain conveyor where a huge circular saw cuts them into sections about 8 ft-4 in (2.5 m) to 8 ft-6 in (2.6 m) long, suitable for making standard 8 ft (2.4 m) long sheets. These log sections are known as peeler blocks.

Making the veneer •

Before the veneer can be cut, the peeler blocks must be heated and soaked to soften the wood. The blocks may be steamed or immersed in hot water. This process takes 12-40 hours depending on the type of wood, the diameter of the block, and other factors.

•

The heated peeler blocks are then transported to the peeler lathe, where they are automatically aligned and fed into the lathe one at a time. As the lathe rotates the block rapidly about its long axis, a full-length knife blade peels a continuous sheet of veneer from the surface of the spinning block at a rate of 300-800 ft/min (90240 m/min). When the diameter of the block is reduced to about 3-4 in (230-305 mm), the remaining piece of wood, known as the peeler core, is ejected from the lathe and a new peeler block is fed into place.

•

The long sheet of veneer emerging from / the peeler lathe may be processed immediately, or it may be stored in long, multiple-level trays or wound onto rolls. In any case, the next process involves cutting the veneer into usable widths, usually about 4 ft-6 in (1.4 m), for making standard 4 ft (1.2 m) wide plywood sheets. At the same time, optical scanners look for sections with unacceptable

16

defects, and these are clipped out, leaving less than standard width pieces of veneer.

The wet strips of veneer are wound into a roll, while an optical scanner detects any unacceptable defects in the wood. Once dried the veneer is graded and stacked. Selected sections of veneer are glued together. A hot press is used to seal the veneer into one solid piece of plywood, which will be trimmed and sanded before being stamped with its appropriate grade. •

The sections of veneer are then sorted and stacked according to grade. This may be done manually, or it may be done automatically using optical scanners.

•

The sorted sections are fed into a dryer to reduce their moisture content and allow them to shrink before they are glued together. Most plywood mills use a mechanical dryer in which the pieces move continuously through a heated chamber. In some dryers, jets of high-velocity, heated air are blown across the surface of the pieces to speed the drying process.

•

As the sections of veneer emerge from the dryer, they are stacked according to grade. Underwidth sections have additional veneer spliced on with tape or glue to

17

make pieces suitable for use in the interior layers where appearance and strength are less important. •

Those sections of veneer that will be installed crossways—the core in three-ply sheets, or the crossbands in five-ply sheets—are cut into lengths of about 4 ft-3 in (1.3 m).

Forming the plywood sheets •

When the appropriate sections of veneer are assembled for a particular run of plywood, the process of laying up and gluing the pieces together begins. This may be done manually or semi-automatically with machines. In the simplest case of three-ply sheets, the back veneer is laid flat and is run through a glue spreader, which applies a layer of glue to the upper surface. The short sections of core veneer are then laid crossways on top of the glued back, and the whole sheet is run through the glue spreader a second time. Finally, the face veneer is laid on top of the glued core, and the sheet is stacked with other sheets waiting to go into the press.

•

The glued sheets are loaded into a multiple-opening hot press. presses can handle 20-40 sheets at a time, with each sheet loaded in a separate slot. When all the sheets are loaded, the press squeezes them together under a pressure of about 110200 psi (7.6-13.8 bar), while at the same time heating them to a temperature of about 230-315° F (109.9-157.2° C). The pressure assures good contact between the layers of veneer, and the heat causes the glue to cure properly for maximum strength. After a period of 2-7 minutes, the press is opened and the sheets are unloaded.

•

The rough sheets then pass through a set of saws, which trim them to their final width and length. Higher grade sheets pass through a set of 4 ft (1.2 m) wide belt sanders, which sand both the face and back. Intermediate grade sheets are manually spot sanded to clean up rough areas. Some sheets are run through a set of circular saw blades, which cut shallow grooves in the face to give the plywood a textured appearance. After a final inspection, any remaining defects are repaired.

18

•

The finished sheets are stamped with a grade-trademark that gives the buyer information about the exposure rating, grade, mill number, and other factors. Sheets of the same grade-trademark are strapped together in stacks and moved to the warehouse to await shipment.

PRODUCT: 1) PLYWOOD SHEETS:

19

FUTURE PLANNING FOR THE EXPANSION:Even though plywood makes fairly efficient use of trees—essentially taking them apart and putting them back together in a stronger, more usable configuration—there is still considerable waste inherent in the manufacturing process. In most cases, only about 5075% of the usable volume of wood in a tree is converted into plywood. To improve this figure, several new products are under development. One new product is called oriented strand board, which is made by shredding the entire log into strands, rather than peeling a veneer from the log and discarding the core. The strands are mixed with an adhesive and compressed into layers with the grain running in one direction. These compressed layers are then oriented at right angles to each other, like plywood, and are bonded together. Oriented strand board is as strong as plywood and costs slightly less.

20

List of the machine to be used in the manufacturing process and their cost of purchase:General Plywood Processing Machine 1.

Hydraulic Hot Press Machine: 'BS' Make, Hydraulically operated steam/oil heated

multi

daylight Hot

Press in upclosing frame. The main body is fabricated from M.S. Plate and Hot Platens are also fabricated from solid plate as well as complete with Automatic Powerpack, steam connection pipes and other necessary parts

and components.

Rs. 55,50,000

2) Steam Boiler :

21

3) Chimney(30m)

with ladder:

v

4) Heat Recovery unit (Air Pre-Heater):

. 22

5) Glue mixer :

23

SOURCES OF FINANCE:Supply of finance is very important factor in the establishment of an enterprise is old. Finance id the life line of the business. Finance e deals with the arrangements of the sufficient capital for the smooth run of the organization. Following are the certain sources of the scheme of the finance. A) OWN CAPITAL:According to the rules set up by various financial institution 25% to 35% of the capital should be the own investment of the entrepreneur. 30% of the project cost will be financed by the promoter himself. B) TERM LOAN FROM THE COMMERCIAL BANKS: State Bank Of India, Hingoli branch, lend Rs. 51,20,000/-at the rate 11% C)

TERM

LOANS

FROM

THE

NATINAL

SMALL

INDUSTRIES

CORPORATION:NSIC provides loans at 8.5% to small scale industries for the development of the working capital requirement.

COST OF THE PROJECT SR.NO 01 02 03 03 04 05 06 06

PARTICULARS Land Site development Building Plant and machinery Furniture and Misc

Preliminary and preoperative exp. Depreciation Working capital (3months) TOTAL

AMOUNT 8,00,000.00 45,000.00 20,00,000.00 79,00,000.00 1,75,000.00 77,000.00 9,07,500.00 27,45,000.00 1,46,49,500.00

24

MEANS OF FINANCE: SR.NO

RATE

OF PARTICULARS

01 02 03

INTEREST NIL 11% 8.5% TOTAL

AMOUNT

Promoters Capital State Bank Of India NSICL

43,94,850.00 51,20,000.00 51,34,650.00 1,46,49,500.00

TOTAL FIXED CAPITAL: SR.NO 01 02 03 03 04 05 06

PARTICULARS Land Site development Building Plant and machinery Furniture and Misc Preliminary and preoperative exp. Depreciation TOTAL

AMOUNT 8,00,000.00 45,000.00 20,00,000.00 79,00,000.00 1,75,000.00 77,000.00 9,07,500.00 1,23,57,000.00

1. LAND: Sr. No 01

Particulars Land area

Price/Acre 4,00,000.00

Amount 8,00,000.00

(2 acre) 2. SITE DEVELOPMENT Sr. no

Particulars

Cost of the

Amount

items 25

O1

Filling of the land

13,000.00

13,000.00

02

Fencing

12,000.00

12,000.00

03

Gardening

10,000.00

10,000.00

10,000.00 45,000.00

10,000.00 45,000.00

Cost of the

Amount

items 3,20,000.00 3,50,000.00 7,80,000.00 1,50,000.00 4,00,000.00 20,00,000.00

3,20,000.00 3,50,000.00 7,80,000.00 1,50,000.00 4,00,000.00 20,00,000,00

04

Gates Total 3. BUILDING Sr. no

Particulars

01 02 03 04 05

Corporate office Show room Work shop Toilets Store room Total

4.

PLANT AND MACHINERY:

Sr. no 01

Particulars Hydrualic Hot press

Quantity 01

Amount 55,50,000.00

02 03

machine Steam Boiler Chimney(30m) with

01 01

13,75,000.00 3,75,000.00

04

ladder Heat Recovery unit (Air

01

1,80,000.00

05

Pre-Heater) Multi Cyclone Dust

01

1,75,000.00

06

Collector Pressure Reducing

01

2,25,000.00

Station Add

Transportation

10,000.00 26

Installation 10,000.00 Total cost 79,00,000.00 5. PRELIMINARY AND PRE.OPERATIVE EXPENSES:Sr. No 01 02 03 04 05 06

Particulars Deposit for power ,water , telephone Loan application process fee Deposit for internet Legal stamp duty and registration Travelling Consultancy Total

Amount 25,000.00 12,000.00 3,000.00 20,000.00 10,000.00 7,000.00 77,000.00

5.FURNITURE AND MICELLANOUS ASSETS:sr. no O1

02

Particulars Furniture

Quantity

Amount

Office chairs

8set

24,000.00

Almirah Racks Tables Computer and accessories Fans Sofa Work shed

8 20 2 1 8 1 -------

32,000.00 40,000.00 8,000.00 30,000.00 8,000.00 18,000.00 15,000.00

Total

1,75,000.00

6.DEPRECIATION (P.A) Sr. No

Type of assets

Cost of assets

Rate of

Amount

dep. 27

01 02 03

Plant and machinery Furniture Building Total

79,00,000.00 1,75,000,00 20,00,000.00 1,09,75,000.0

10% 10% 5%

7,90,000.00 17,500.00 1, 00,000.00 9,07,500.00

0

WORKING CAPITAL REQUIREMENT:Sr. no 01 02 03

Particulars Raw materials Salary and wages Other manufacturing

04 05

expenses Power and fuels Selling and office expenses Total

1 month 9,15,000.00 1,35,500.00 12,000.00

3 month 27,45,000.00 4,06,500.00 36,000.00

16,000.00 17000.00

48,000.00 2,04,000.00

10,95,500.00

32,86,500.00

1. RAW MATERIALS:Sr.No 01 02 03

Particulars

No. of

price /piece Cost /month

Softwood Hardwood Adhesive

Tons/month 250 50 2

(Rs) 2000 3000 1,20,000

5,00,000.00 1,75,000.00 2,40,00.00

Cost /year 60,00,000.00 21,00,000.00 28,80,000.00 28

Total

9,15,000.00 1,09,80,000.00

2. SALARY AND WAGES:Sr.no

Name of the

No Salary/head

post

per

Salaries/mont Salaries/year h

post 01 01 02 01 01 06

15,000.00 8,000.00 5,000.00 4,500.00 4,000.00 3,200.00

15,000.00 8,000.00 10,000.00 4,500.00 4,000.00 38,400.00

1,80,000.00 96,000.00 1,20,000.00 54,000.00 48,000.00 4,60,800.00

01 02 03 04 05 06

Manager Accountant Office staff Chemist Supervisor Machine

07 08

Operator Skilled labour Unskilled

06 06

2,700.00 2,200

16,200.00 26,400.00

1,94,400.00 3,16,800.00

09

worker Women

05

1,600

8,000.00

96,000.00

10

Mazdoor Mechanic-

02

2,500

5,000.00

60,000.00

cum Electrician Total

3.

31

1,35,500.00 16,26,000.00

POWER AND FUELS:29

Sr.No Particulars 01 Fuels 02 Power Total 4.

P.A. 84,000.00 1,08,000.00 1,92,000.00

OTHER MANUFACTURING EXPENSES :-

Sr.No 01 02 03

5.

P.M. 7,000.00 9,000.00 16,000.00

Particulars Paints Packaging materials Repairing of the machines Total

P.M. 4,000.00 2,000.00 4,000.00 12,000.00

P.A. 48,000.00 24,000.00 48,000.00 1,44,000.00

OFFICE,SELLING, DISTRIBUTION EXPENSES:

Sr.No 01 02 03

Particulars Postage and stationeries Telephone bills/internets Transportation Total

P.M. 3,000.00 4,000.00 10,000.00 17,000.00

P.A. 36,000.00 48,000.00 1,20,000.00 9,87,000.00

P.M. 9,15,000.00 1,08,400.00 14,400.00

P.A. 1,09,80,000.00 13,00,800.00 1,72,800.00

VARIABLE COST: Sr.No 01 02 03

Particulars Raw materials(100%) Wages (80%) Power and fuels(90%)

04

0ther manufacturing

12000.00

1,44,000.00

05

expense(100%) Interest w/c loans (80%)

37,547.00

4,88,640.00

06 07

Interest term loans (20%) Selling and administrative

7,274.00 17,000.00

94,392.00 2,04,000.00 30

expenses (100%) Total

11,11,621.00

1,33,39,452.00

P.M. 27,100.00 1,600.00 9,386.00 29,096.00 15,300.00

P.A. 3,25,200.00 19,200.00 1,12,632.00 3,49,152.00 1,83,600.00

75,625.00 1,58,107.00

9,07,500.00 18,97,284.00

1 month 9,15,000.00 1,35,500.00 12,000.00

1 year 1,09,80,000.00 16,26,000.00 1,44,000.00

12,000.00 20,000.00

1,44,000.00 2,40,000,00

65,833.00 1460.00 11,49,793.00

7,90,000.00 17,500.00 1,37,97,516.00

FIXED COST:Sr.No 01 02 03 04 05

Particulars Wages (20%) Power and fuels(10%) Interest on w/c (20%) Interest on term loans (80%) Office, selling , distribution

06

expenses (90%) Depreciation(100%) Total

COST OF THE PRODUCTION:Sr. no 01 02 03 04 05 06 07

Particulars Raw materials Salary and wages Other manufacturing expenses Consumables Repairing of machine Depreciation @10% Plant and machineries Furniture Total

31

ESTIMATED SALE:Sr. no

01

Items

03

Price

Monthy

sold

/item

sales

Annually sales

/month 6mm plywood sheets 3*6 3*8 4*6 4*8

02

No items

21 34 50 5

0 TOTAL 165 8 mm plywood sheet 3*6 30 3*8 44 4*6 67 4*8 66 TOTAL 207 12 mm plywood sheet 3*6 44 3*8 66

720 960 960 1280

15,120.00 32,640.00 48,000.00 64,000.00

1,81,440.00 3,91,6800.00 5,76,000.00 7,68,000.00

1,59,760.00

19,17,120.00

1080 1440 1440 1920

32400.00 63360.00 96480.00 1,26,720.00 3,19,600.00

3,88,800.00 7,68,000.00 11,57,760.00 15,20,640.00 38,35,200.00

1440 1920

63,360.00 1,26,720.0

7,60,320.00 15,20,640.00

0

04

4*6 100 4*8 100 TOTAL 300 18 mm plywood sheet 3*6 25 3*8 33 4*6 50 4*8 50 TOTAL

1920 2560

1,92,000.00 2,56,000.00 6,38,080.00

23,04,000.00 30,72,000.00 76,56,960.00

2160 2880 2880 3840

54,000.00 95,040.00 1,44,000.00 1,92,000.00

6,48,000.00 11,40,480.00 17,28,000.00 23,04,000.00 58,20,480.00 1,92,29,760

32

PROFITABILITY:Sr.no 01 02 Less 03 Gross 04 05

Particulars Sales Cost of production

profit Less

Office, selling,

Less

distribution Interest on loan

P.M P.A. 16,02,480.00 1,92,29,760.00 11,49,793.00 1,37,97,516.00 4,52,687.00 54,32,244.00

@11% (PNB) @8.5%(SIDC) 06

Net profit

17,000.00

2,04,000.00

46,933.00 36,370.00

5,63,196.00 4,36,440.00

3,52,384.00

42,28,608.00

BREAK EVEN POINT: Formula used FIXED COST B.E.P= _______________ CONTRIBUTION CONTRIBUTION=SALES-VARIABLE COST CONTRIBUTION=Rs 1, 92, 29,760.00-1, 33, 39,452.00 =58, 90,308.00 18, 97,284.00 B.E.P=

_____________ X100 =32.21% 58, 90, 308.00 33