PROJECT REPORT

ON
‘ASSEMBLY OF AUTO CLUTCH PLATE’

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding ‘Assembly Of Auto Clutch Plate’

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/B,
Gokhlley Marg, Lucknow-226001

Delhi Office :
Multi Disciplinary Training Centre,
Gandhi Darshan Rajghat,
New Delhi 110002
Email : [email protected] Contact :
+91 7526000333, 444, 555
 PROJECT PROFILE
ON
‘ASSEMBLY OF AUTO CLUTCH PLATE ’

PRODUCT AND ITS USES:

Clutch is most important part of any Automobile vehicle. The function of this part is to
engage or disengage the engine from the transmission line at the will of its Driver. The
clutch plate is placed in- between the engine and transmission line and operates on
the principle of friction.

MARKET POTENTIALITY:

Now a day the automobile vehicles have become an important means of transport due
to liberalization of economy, increase in purchase power of people & easily availability
of car loans & other transport loans on lower rate of Interest. Almost all vehicles
require auto clutch plates which workout after a lapse of time and requires
replacement. All the districts of Utter Pradesh are well connected by road transport
and transportation of goods as well as public are totally dependent on auto vehicles.
Hence the vehicles requirement is increasing day by day, which intern will require auto
clutch plates for repair/replacement, so the demand of this item is expected to be of
high order in near future. The proposed unit may also contact big automobile
manufacturing units to fetch their requirement as per their demand.
 BASIS AND PRESUMPTIONS:

i) The basis for calculation of production capacity on maximum capacity utilization has
been taken on single shift basis for 300 days a year. During first year, second year
and third year of operations the capacity utilization is 60%, 70%, 80% and 90%
respectively. The unit is expected to achieve full capacity utilization from the fourth
year onward.
ii) The salaries and wages, cost of raw materials, utilities, rents etc. are based on the
prevailing rates in and around Allahabad. These cost factors are likely to vary with
time and location.
iii)Interest on term loan and working capital loan has been taken 11.00% per Annum.
iv)The cost of machinery and equipment as indicated in the scheme are approximate of
these ruling at the time of preparation of scheme. Entrepreneur may check up the
latest and exact price for specific make and model of the machine selected.
v) It is presumed that unit will get full capacity within five years.
vi)It is presumed that operative period of unit will be 10 years.

IMPLEMENTATION SCHEDULE:

The major activities in the implementation of the project have been listed below and the
average time for implementation of the project is estimated at 6 months:

Work schedule Period (in months)

 Preparation of project report 1
 Registration and other formalities 1
 Sanction of loan by financial institutions 1
 Plant & Machinery
a) Placement of orders
b) Procurement 1
c) Power connection/Electrification 1
d) Installation/Erection of machinery/
Test equipment 1
 Procurements of raw material 1
 Recruitment of Technical Staff etc. 1
 Trial Production Commercial Production 1

1. Many of the above activities shall be initiated concurrently

2. Procurement of raw materials commences from the 6-7th month onwards.
TECHNICAL ASPECTS:

PROCESS OF MANUFACTURE:

Clutch plate assembly consists of following components:

1 Main drive plates
1. Liner shoe.
2. Shoe holder
3. Spring holder plate
4. Rivets of required size.
5. Spring.

The above-mentioned items are procured from actual manufacturers or suppliers and are
assembled as required then they are painted and suitably packed for dispatch.

QUALITY CONTROL AND STANDARD:

The quality of the spare parts purchased for assembly purposes should be ascertained
and after assembly, the performance of each part is checked manually.

PRODUCTION CAPACITY:

It is proposed that 6000 Nos. of clutch plates of assorted size for Rs.53.21lac will be
assembled / manufactured per annum

MOTIVE POWER: 8 HP Power will be required.

POLLUTION CONTROL:

No pollution is involved in the manufacturing process of Auto Clutch plates because it is

only an assembly unit.

LABOUR REQUIREMENT:

6-7 Manpower is required for Clutch plate manufacturing Includes:

1 Foreman/Supervisor
2 Skilled Labour
4 Unskilled Labour

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 BANK LOAN
Rate of Interest is assumed to be at 11.00%

DEPRECIATION
Depreciation has been calculated as per the provisions of Income Tax Act, 1961

APPROVALS & REGISTRATION REQUIREMENT:

Basic registration required in this project:
 GST Registration
 Udyam Registration
 Choice of Brand name of the product and secure the name with Trademark if
required

FINANCIAL ASPECTS:

Product and By Product : Auto Clutch Plate

Name of the project / business Auto Clutch Plate
activity proposed :
Cost of Project : Rs.7.66 Lacs
Means of Finance
Term Loan Rs.3.53 Lacs
KVIC Margin Money - As per Project Eligibility
Own Capital Rs.0.77 Lacs
Working Capital Rs.3.37 Lacs
Debt Service Coverage Ratio : 5.38
Pay Back Period : 5 Years
Project Implementation Period : 6 Months
Break Even Point : 30%
Employment : 10 Persons
Power Requirement : 8.00 HP
Major Raw materials : Main drive plate with shoe holder and
other spare parts
Estimated Annual Sales : 53.21 Lacs
Turnover

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COST OF PROJECT (Rs. In Lacs)
Particulars Amount
Land
Building & Civil Work (2000 Sq
Ft) Rented/Owned
Plant & Machinery 2.82
Furniture & Fixtures 0.75
Pre-operative Expenses 0.35
Working Capital Requirement 3.74
Total 7.66

MEANS OF FINANCE (Rs. In Lacs)

Particulars Amount
Own Contribution @10% 0.77
Term Loan 3.53
Workign Capital Finance 3.37
Total 7.66

Beneficiary's Margin Monery (% of Project Cost)

Special General
5% 10%

PLANT & MACHINERY

1 Special purpose riveting Machine with One HPMotor 2 40000 80000

along with electrical fittings.

2 Bench Drilling M/c 13 mm Capacity, 0.75 HP Motor 2 20000 40000

3 Hand fly press double column, type No. 6 2 40000 80000

4 1 20000 20000
Double ended pedestal grinder 300 mm wheel Dia,2HP
Motor
5 Dies, Tools and Accessories LS 40000 40000
6 Installation & Electrification LS 22000 22000
TOTAL 282000

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COMPUTATION OF MANUFACTURING OF ASSEMBLY OF AUTO CLUTCH
PLATE

Manufacturing Capacity per day 20.00 Pcs

No. of Working Hour 8
No of Working Days per month 25
No. of Working Day per annum 300
Total Production per Annum 6,000.00 Pcs
Year Capacity Pcs
Utilisation
IST YEAR 75% 4,500
IIND YEAR 80% 4,800
IIIRD YEAR 85% 5,100
IVTH YEAR 90% 5,400
VTH YEAR 95% 5,700

COMPUTATION OF RAW MATERIAL

Quantity of
Item Name Raw Material Unit Rate of Total Cost
Per Annum
Sets / MT (100%)
Main drive plate with
6,000.00 100.00 6,00,000.00
shoe holder
Liner Shoe 36,000.00 15.00 5,40,000.00
Spring Holder plate 6,000.00 40.00 2,40,000.00
Plain/lock Washer 600.00 Gms 100.00 60,000.00
Rivet of different sizes &
6,000.00 40.00 2,40,000.00
sorts
Liner 6,000.00 150.00 9,00,000.00
Spring 6,000.00 80.00 4,80,000.00
Total (Rounded off
Annual Consumption cost 30.60
in lacs)

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 Capacity
Raw Material Consumed Utilisation Amount (Rs.)
IST YEAR 75% 22.95
IIND YEAR 80% 24.48
IIIRD YEAR 85% 26.01
IVTH YEAR 90% 27.54
VTH YEAR 95% 29.07

COMPUTATION OF CLOSING STOCK & WORKING CAPITAL

IST IIND IIIRD IVTH VTH

PARTICULARS YEAR YEAR YEAR YEAR YEAR
Finished Goods
(15 Days
1.47 1.60 1.70 1.81 1.92
requirement)
Raw Material
(15 Days
1.15 1.22 1.30 1.38 1.45
requirement)
Closing Stock 2.62 2.82 3.00 3.19 3.38

COMPUTATION OF WORKING CAPITAL REQUIREMENT

Particulars Total
Amount
Stock in Hand 2.62
Sundry Debtors 1.92
Total 4.54
Less:Sundry Creditors 0.77
Working Capital Requirement 3.77
Less:Margin 0.38

Working Capital Finance 3.40

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PROJECTED BALANCE SHEET

IST IIND IIIRD IVTH

VTH YEAR
PARTICULARS YEAR YEAR YEAR YEAR
SOURCES OF FUND
Capital Account 0.77 3.30 6.08 8.67 11.05
Retained Profit 5.03 5.78 6.59 7.39 8.15
Less Withdrawal 2.50 3.00 4.00 5.00 6.00
3.30 6.08 8.67 11.05 13.21
-
3.53 2.65 1.76 0.88
Term Loan 0.66
Cash Credit 3.40 3.40 3.40 3.40 3.40
Sundry Creditors 0.77 0.82 0.87 0.92 0.97
Provisions & Other
0.36 0.40 0.44 0.48 0.53
Liab
TOTAL : 11.35 13.33 15.13 16.73 17.44
APPLICATION OF
FUND
Fixed Assets ( Gross) 3.57 3.57 3.57 3.57 3.57
Gross Dep. 0.46 0.89 1.26 1.58 1.85
Net Fixed Assets 3.11 2.68 2.31 1.99 1.72
Current Assets
Sundry Debtors 1.92 2.17 2.33 2.50 2.66
Stock in Hand 2.62 2.82 3.00 3.19 3.38
Cash and Bank 1.20 2.66 3.48 4.06 3.69
Deposits & Advances 2.50 3.00 4.00 5.00 6.00
TOTAL : 11.35 13.33 15.13 16.73 17.44

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PROJECTED PROFITABILITY STATEMENT

IST IIND IIIRD IVTH VTH

PARTICULARS YEAR YEAR YEAR YEAR YEAR
A) SALES
Gross Sale 38.48 43.50 46.68 49.92 53.21
Total (A) 38.48 43.50 46.68 49.92 53.21
B) COST OF SALES
Raw Material Consumed 22.95 24.48 26.01 27.54 29.07
Elecricity Expenses 0.43 0.46 0.49 0.52 0.54
Repair & Maintenance - 0.43 0.47 0.50 0.53
Labour & Wages 4.75 5.23 5.75 6.32 6.96
Depriciation 0.46 0.43 0.37 0.32 0.27
Consumables and Other
Expenses 0.77 0.87 0.93 1.00 1.06
Cost of Production 29.36 31.90 34.02 36.20 38.44
Add: Opening Stock /WIP - 1.47 1.60 1.70 1.81
Less: Closing Stock /WIP 1.47 1.60 1.70 1.81 1.92
Cost of Sales (B) 27.89 31.77 33.91 36.09 38.33
C) GROSS PROFIT (A-B) 10.58 11.72 12.77 13.83 14.88
28% 27% 27% 28% 28%
D) Bank Interest (Term
Loan ) 0.26 0.32 0.23 0.14 0.05
Bank Interest ( C.C.
Limit ) 0.34 0.34 0.34 0.34 0.34
E) Salary to Staff 2.38 2.61 2.87 3.16 3.48
F) RentalExpenses 1.80 1.80 1.80 1.80 1.80
G) Selling & Adm Expenses
Exp. 0.77 0.87 0.93 1.00 1.06
TOTAL (D+E) 5.55 5.94 6.18 6.44 6.73
H) NET PROFIT 5.03 5.78 6.59 7.39 8.15
I) Taxation
J) PROFIT (After Tax) 5.03 5.78 6.59 7.39 8.15

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 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.

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