PLANT ECONOMICS

Rated Plant capacity = 100.00 MT/day

= 30,000MT/annum
STEEL ROD

Basis

No. of working days = 25 days/month

= 300 days/annum

No. of shifts = 3 per day

One shift = 8 hours

Currency - Rs.

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 LAND & BUILDING

1. Land area required 12000 SQ MTR ---RS---00.00

2. Main PRODUCTION shed 5200 sq.mtrs

@ 8000/- per Sq.Mtrs. RS------4,16,00,000.00

3. STORE 200 SQ MTR @ RS 8000 /-sq mtr---- RS----- 16,00,000.00

4.TESTING LAB 100 SQ MTR @RS 8000/- SQ MTR----RS---8,00,000.00

5.GODOWN FOR RAW MATERIAL 1000 SQ MTR @RS 6000/- SQ MTR----RS---

60,00,000.00

6.GODOWN FOR FINISH STORE 500 SQ @RS 6,000/-PER SQ MTR----RS----

30,00,000.00

7. ADMIN OFFICE 200 SQ MTR @RS 9000/- SQ MTR----18,00,000.00

8. BOUNDRY WALL AND FOUNDATION ETC------RS---------30,00,000.00

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TOTAL Rs. 5,78,00,000.00
------------------------

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PLANT & MACHINERY

1.PUSHER TYPE HEATING FURNACE CAP 25 TON PER HR----01 NOS---RS---

2,50,00,000.00
2. 18” ROUGHING MILL WITH THREE STANDS AND ALL OTHER ACESSORIES------
01 SET---RS-----2,45,00,000.00

3.12” INTERMEDIATE MILL WITH FOUR STANDS AND ALL OTHER ACESSORIES------
----01 SET------RS------91,00,000.00

4.10” FINISHING MILL WITH SIS STANDS AND ALL OTHER ACESSORIES----------------
-------01 SET------RS-----1,20,00,000.00

5.FRONT END,BACK END CUTTING MACHINE AND REPEATER ETC----RS----------------

------40,00,000.00

6.MATERIALS HANDLING EQUIPMENTS-----RS------40,00,000.00

7. COOLING BED ----01 SET-----RS--------1,00,00,000.00

8. WORKSHOP MACHINERY------RS------60,00,000.00

9.SPARE ROLLS--------RS-----40,00,000.00

10.ELECTRICAL SYSTEM-----RS-----3,70,00,000.00

11.DGSETS 500KVA----04 NOS----RS-----1,80,00,000.00

12. COOLING TOWER CAPACITY 500 CUBIC METER/HR---01SET---RS—10,000.00

13. EFFULENT TREATMENT PLANT---01 SET----RS----5,00,000.00

14. AIR COMPRESSURE CAPACITY 140 CFM---02NOS-----RS---10,00,000.00

15.FIRE FIHTING EQUIPMENT--------RS-------20,00,000.00

16. TUBE WELL------------------RS----------3,00,000.00

17.MECHANICAL TESTING AND CHEMICAL ANALYSER------RS----20,00,000.00

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18. AIR POLLUTION AND CONTROLL EQUIPMENT--------RS-----20,00,000.00

19. WEIGHT BRIDGE CAP 100 TON---01 NO-------RS-------20,00,000.00

20. MISCELLNEOUS--------------------RS----------5,00,000.00

TOTAL---------------RS-----------16,49,00,000.00

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OTHER FIXED ASSETS

1. Office equipment, furniture plus

other equipment & accessories RS 6,00,000.00

2. Installation costs for water,

electricity, fuel etc. RS. 2,,00,00,000.00

3. Pre-operative & preliminary expenses RS. 5,00,000.00

4. Technical know how fees RS. 4,00,000.00

5. Contigencies RS. 5,00,000.00

6. Computer,LAPTOP,SOFTWARE, Printer and Internet

connections RS--. 4,00,000.00

------------------------
TOTAL RS. 2,24,00,000.00

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 ------------------------

FIXED CAPITAL

1. LAND & BUILDING RS. 10,38,00,000.00

2. PLANT & MACHINERY RS. 18,31,00,000.00

3. OTHER FIXED ASSETS RS. 2,24,00,000.00

------------------------
TOTAL RS. 30,55,00,000.00
------------------------

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WORKING CAPITAL REQUIREMENT/MONTH

RAW MATERIALS
1. M.S. Scrap QTY 1325 MT.
@ Rs. 20,000/- MT. Rs. 2,65,00,000.00

2. Sponge Iron QTY 650 MT.

@ Rs. 14,000/- MT. Rs. 91,00,000.00

3. Pig Iron QTY 650 MT.

@ Rs. 20,000/- MT. Rs. 91,00,000.00

4. Ferro Silicon QTY 6.5 TON

@ Rs. 65,000/- TON. Rs. 4,22,500.00

5. Lime QTY 94 MT.

@ Rs. 6000/- MT. Rs. 5,64,000.00

6. Coke QTY 5 TON.

@ Rs. 8000/- TON. Rs. 40,000.00

7. PICKLING CHEMICALS RS 50,000.00

8. FLUXES,HARDWARE ETC---------------RS-----------1,00,000.00

9. Miscellanious Rs. 2,50,000.00

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 TOTAL------------------RS------------4,61,26,500.00

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SALARY & WAGES / MONTH

1. Managing Director 1 No. RS. 1,50,000.00

2. Manager cum steel technologist 1 No. RS. 50,000.00

3. Works Manager 1 No. RS. 50,000.00

4. PRODUCTION Engineers 6 No. RS. 1,50,000.00

5. MAINTANACE ENGINEER 3 No. RS. 60,000.00

6. MAINTANACE FITTER 9 NO RS 90,000.00

7. CHEMIST 3 NO RS 60,000.00

8. FOREMAN 1 NO RS 20,000.00

9. Clerk Accountant 3 No. RS. 30,000.00

10. STORE KEEPER 6 NO RS 60,000.00

11. SALES EXECUTIVE 3NO RS 30,000.00

12.RECEIPNIST 01 NO RS 10,000.00

13. Mill operators 20 No. RS. 2,00,000.00

14. Semi skilled workers 20 No. RS 1,80,000.00

15. Helpers 20 No. RS. 1,60,000.00

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 16. Peon 3 No. RS 24,000.00

17. Guard 6 No. RS. 27,000.00

18. SWEAPER 3 NO RS 21,000.00

------------------------
TOTAL RS ---. 14,22,000.00
------------------------

UTILITIES AND OVERHEADS

1. Power Consumption of 20,00,000

Kwatt hrs @ RS. 8 per Kwatt hr. RS 1,60,00,000.00

2. Water Consumption of 500

KLs @ RS. 4 per KL RS. 2,000.00

3. Repairs and Maintenance RS. 5,00,000.00

4. Postage, Stationary and Telephones RS. 30,000.00

5. Conveyance and Transportation

charges RS. 5,00,000.00

6. Publicity and sales expanses RS. 1,00,000.00

7. Miscellaneous RS. 2,00,000.00

8. Administrative Expenses RS. 1,00,000.00

TOTAL-------------RS----------------1,92,32,000.00

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--------------------------------------------------------------------------------
----

TOTAL WORKING CAPITAL/MONTH

1. RAW MATERIAL RS. 4,61,26,500.00

2. SALARY & WAGES RS. 14,22,000.00

3. UTILITIES & OVERHEADS RS 1,92,32,000.00

TOTAL----------------RS------------------------6,67,80,500.00

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1. WORKING CAPITAL FOR 2 MONTHS RS 13,35,61,000.00

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 TOTAL CAPITAL INVESTMENT

TOTAL FIXED CAPITAL RS. 30,55,00,000.00

TOTAL WORKING CAPITAL FOR 2 MONTHS

RS. 13,35,61,000.00

TOTAL-----------------RS----------------------43,90,61,000.00

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COST OF PRODUCTION/ANNUM

1. Working Capital for 1 year RS 80,13,66,000.00

2. Interest @ 13.50% ON T.C.I. RS 5,92,73,235.00

3. Depreciation @ 10.00% on buildings RS. 79,60,000.00

4. Depreciation @ 20.00% on Plant

and Machinery RS.3,66,20,000.00

5. Depreciation @ 20.00% on office

equipment & furnitures RS. 1,20,000.00

TOTAL---------------RS----------------90,53,39,235.00

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 TURN OVER/ANNUM
1. By sale of 30000 MT M.S (SIZE FROM 4 MM TO 32 MM)
@ RS.36,000/- per MT (AT AVERAGE) ---------RS 1,08,00,00,000.00

2. BY SALE OF SLAG 3000 MT @ RS 15,000/- PER MT----RS—4,50,00,000.00

TOTAL---------------RS--------------1,12,50,00,000.00

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