PROJECT REPORT

PRINTING PRESS UNIT

18 DECEMBER 2023
ANNU PRIYA
WARD NO: 06, HARAIL ROAD, MOHIUDDIN NAGAR, SAMASTIPUR, BIHAR-848501
 BIO DATA

• NAME OF PROPRIETOR :- ANNU PRIYA

• ADRESS OF THE UNIT :- WARD NO: 06,HARAIL ROAD

MOHIUDDINNAGAR,
SAMASTIPUR, BIHAR
848501
• UNIT LOCATION :- RURAL
• PRODUCT ITEM :- PRINTING SERVICE
• CATRGORY :- SERVICE
• KIND OF FIRM :- PROPRIETORSHIP
• NAME OF APLICANT :- ANNU PRIYA
• ADHAAR NO :- 6919 0222 7709
• NAME OF FATHER :- MANOJ SINGH
• GENDER :- FEMALE
• DATE OF BIRTH :- 10-09-1996
• RESIDENTIAL ADDRESS :- WARD NO: 06,HARAIL ROAD
MOHIUDDIN NAGAR,
SAMASTIPUR, BIHAR
848501

• MOBILE NUMBER :- +91-9693380813

• ACADEMIC QUALIFICATION :- 12TH PASS
• SOCIAL CATEGORY :- GEN
• PAN NO :- HGNPP9536A
• LAND :- OWNED

1
 PROJECT SUMMARY

1. Name of the proposed project : Printing Press Unit

2. Nature of proposed project : Proprietorship

3. Proposed project capacity : 97,92,000 Sheet/Annum

4. Raw materials : Paper, Card Sheet, Ink, Gum etc.

5. Major product outputs : Visiting Card, Magazines, Printed Card etc.

6. Total project cost : Rs. 20,00,000.00

• Land development, building & Civil : Rs. 0.00

Construction

• Machinery and equipment’s : Rs. 13,95,000.00

• Miscellaneous Fixed Assets : Rs. 0.00

• Working capital : Rs. 6,05,000.00

9. Profit after Depreciation, Interest & Tax

• 1styear : Rs. 7,10,518.00

• 2ndyear : Rs. 9,37,430.00

• 3rd year : Rs. 11,80,173.00

• 4th year : Rs. 12,36,712.00

11. Average DSCR : 3.02

12. Term loan repayment : 5 Years

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 ABOUT THE PRODUCT

INTRODUCTION: -

Offset Printing is the latest method of printing system in any language. The method of printing in
earlier days was by rotary printing press in which the matter to be printed was to be first
composed manually. In Offset printing, the matter which is to be printed is fed into the computer
and after that with the help of the camera, it is exposed and film is prepared through
developer/chemicals and put into Offset printing Machine to take out the print. Offset printing
method is the latest one where the quality of printing is very fine in comparison to the previous
method.
Market Potential: -

Today is the age of technology. Offset Printing Press is the example of new technology. The
required material may be printed in minimum time with good accuracy and better quality. Now a
days, the number of schools, colleges, offices and other business activities is increasing day by
day. They require stationery, books and other printed materials. Therefore, Offset Printing Press
has very good scope, particularly in Urban and semi–Urban areas.

BASIS AND ASSUMPTIONS: -

i) This report is worked out on the basis of 50% capacity utilization on Single Shift and 300
working days per annum.
ii) The machinery and equipment are of standard make.
iii) The cost of raw materials and other expenditure is approximate and based on current market
rates.
iv) The period for achieving envisaged capacity utilization is estimated to be one year after
commencement of production.
v) Interest rate for fixed and working capital has been calculated @ 11% per annum.
vi) Payback period would commence immediately and the repayment period is estimated at 5
years.

Area: -

The industrial setup requires space for Inventory, workshop or manufacturing area, space for
power supply utilities and auxiliary like Generator setup. Also, some of the area of building is
required for office staff facilities, documentation, office furniture, etc. Thus, the approximate total
area required for complete industrial setup is 1000 to 1500Sqft.

Power Requirement: -

The power consumption required to run all the machinery could be approximated as 5KW.

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TECHNICAL ASPECTS

Process of Manufacture: -

Composing of matter which is to be printed, is done on computer with the help of special
Software’s such as Corel Draw, Photoshop, MS Office, Page Maker, etc., Thereafter a film is
produced with the help of a camera. This film is called negative. The matter, which is to be
printed is taken on this film/negative.
The negative and an aluminium plate are put into the printing down frame/exposer. Before
starting the exposer, the pre-setting of timer is done in the timer/watch. Generally, it takes approx.
200 seconds for making positive. The time exposer is switched off automatically as soon as
positive has been built up. The image of negative is printed on the aluminium plate, which is
called positive. After that, the developer is spread on the plate followed by washing with the fresh
water. During this process, the matter gets printed on the plate automatically. Thereafter, the
aluminium plate is fitted in the offset printing press. This plate is called P.S. Plate, when it is used
for first time and thereafter it is called Y-pon Plate. The papers are cut on Paper Cutting Machine.
Then the papers are fed one by one into Offset Printing Press. Generally, the capacity of offset
printing press is 4000 impressions per hour.

Quality Control and Standards: -

As per Customers’ requirements.

Pollution Control: -

The manufacturing activity does not pose any pollution as such no special pollution measures are
required.

Energy Conservation: -

Wastage of energy should be minimised as much as possible so that the unit can withstand
competition with similar unit.

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 CAPACITY, UTILIZATION, PRODUCTION & OUTPUT: -

COMPUTATION OF PRODUCTION OF PRINTED PAPER

Items to be Manufactured PRINTED PAPER

Machine capacity Per hour 4,080 Sheets

Total working Hours 8 Hours

Machine capacity Per Day 32,640 Sheets

Working days in a month 25 Days

Working days per annum 300 Days

Machine capacity per annum 97,92,000 Sheets

Total Production Per Annum 97,92,000 Sheets

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 MEANS OF FINANCE

Own Contribution 5% Rs. 1,00,000.00

Bank Finance : 95%

Term Loan Rs. 13,25,250.00
Working Capital Rs. 5,74,750.00

Total Rs. 1900000.00

Margin Money (Govt. Subsidy) From

35% Rs. 700000.00
KVIC

Margin Money Subsidy received From KVIC will be kept in term deposit as per
norms of

PMEGP in the name of Beneficiary for three years in the financing branch.

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 COST OF PROJECT

A. Fixed Capital Investment

a. Land : 1200 Own

b. Workshed Area Sq.ft Rate in Rs. Amt. In Rs.

2 Floor Building 1200 0.00 0.00
Total 0.00

C. Machinery Qty. Rate Amount in Rs.

KONICA MINOLTA DIGITAL PRINTER 12
X 18 1 1395000.00 1395000.00
Total 1395000.00
d. Preliminary & Pre-operative Cost: Rs. 0.00

e. Furniture & Fixtures : Rs. 0.00

f. Contingency/Others/Miscellaneous
: Rs. 0.00

Total Capital Expenditure : Rs. 1395000.00

Working Capital : Rs. 605000.00

Total Cost Project : Rs. 2000000.00

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 Repayment Shedule of Term Loan and Working Capital

Term Loan
Interest
@
Year Opening Balance Installment Closing Balance
11.00%

1st 1325250 132525 1192725 145778

2nd 1192725 265050 927675 131200
3rd 927675 265050 662625 102044
4th 662625 265050 397575 72889
5th 397575 265050 132525 43733
6th 132525 265050 0 14578

Working capital

Interest
Year Opening Balance Installment Closing Balance @
11.00%

1st 574750 57475 517275 63223

2nd 517275 114950 402325 56900
3rd 402325 114950 287375 44256
4th 287375 114950 172425 31611
5th 172425 114950 57475 18967
6th 57475 114950 0 6322

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 Statement Showing The Depreciation on Fixed
Assets

WORKSHED @ 10.00%
5th
Particulars 1st Year 2nd Year 3rd Year 4th Year Year

Opening Balance 0 0 0 0 0

Depreciation 0 0 0 0 0

Closing Balance 0 0 0 0 0

MACHINERY @ 15.00%

Opening Balance 1395000 1185750 1007888 856704 728199

Depreciation 209250 177863 151183 128506 109230

Closing Balance 1185750 1007888 856704 728199 618969

TOTAL DEPRECIATION

Workshed 0 0 0 0 0

Machinery 209250 177863 151183 128506 109230

Total 209250 177863 151183 128506 109230

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 SCHEDULE OF SALES REALIZATION

Details of Sales
Amount in Rs.
Rate/ No. of
Particulars of Product
Pair/Unit Pair/Unit

PRINTED PAPER 1.00 9792000 9792000.00

0 0.00 0 0.00

Total 9792000.00

CAPACITY UTILIZATION OF SALES

5th
Particulars 1st Year 2nd Year 3rd Year 4th Year Year

Capacity Utilization 70% 80% 90% 90% 90%

Sales / Receipts 6854400 7833600 8812800 8812800 8812800

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 ESTIMATE OF RAW MATERIALS & WAGES
RAW MATERIALS
Particulars Unit Rate/unit Reqd.Unit Amount in Rs.
RAW MATERIALS 0 0.70 9792000 6854400.00
0 0 0.00 0 0.00
Total 6854400.00

Wages

No. of Wages Amount in Rs.

Particulars
Worker Per Month (Per Annum)
SKILLED 2 8000.00 192000.00
UNSKILLED 2 6000.00 144000.00
Total 4 336000.00

Repairs and Maintenance : Rs. 97920.00

Power and Fuel : Rs. 195840.00

Other Overhead Expenses : Rs. 97920.00

ADMINISTRATIVE EXPENSES
Salary
COMPUTER
OPERATOR 1 12000.00 144000.00
0 0 0.00 0.00
0 0 0.00 0.00
0 0.00 0.00
0 0.00 0.00
Total 1 144000.00

Telephone Expenses 97920.00

Stationery & Postage 97920.00

Advertisement & Publicity 97920.00

Workshed Rent 0.00

Other Miscellaneous Expenses 97920.00

Total 535680.00

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 CAPACITY UTILIZATION OF
MANUFACTURING & ADMINISTRATIVE
EXPENSES:

Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year

Capacity Utilization 70% 80% 90% 90% 90%

Manufacturing Expenses

Raw materials 4798080 5483520 6168960 6168960 6168960

Wages 235200 268800 302400 302400 302400

Repairs & Maintenance 68544 78336 88128 88128 88128

Power & Fuel 137088 156672 176256 176256 176256

Other Overhead
Expenses 68544 78336 88128 88128 88128

Administrative Expenses

Salary 144000 144000 144000 144000 144000

Postage Telephone
Expenses 68544 78336 88128 88128 88128

Stationery & Postage 68544 78336 88128 88128 88128

Advertisement & Publicity 68544 78336 88128 88128 88128

Workshed Rent 0 0 0 0 0
Other Miscellaneous
Expenses 68544 78336 88128 88128 88128

Total: 5725632 6523008 7320384 7320384 7320384

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 ASSESSMENT & ESTIMATE OF
WORKING CAPITAL
1. ASSESSMENT OF WORKING CAPITAL

Particulars Amount in Rs.

Sale 9792000.00

Manufacturing Expenses
Raw Material 6854400.00
Wages 336000.00
Repair & Maintenance 97920.00
Power & Fuel 195840.00
Other Overhead Expenses 97920.00

Production Cost 7582080.00

Administrative Cost 535680.00
Manufacturing Cost 8117760.00

2. WORKING CAPITAL ESTIMATE

Element of Working
Capital No of Days Basis Amount in Rs.
0 0 Material Cost 250000.00

Stock in process 3 Production Cost 55000.00

Finished goods 5 Manufacturing Cost 150000.00

Receivable by 7 Manufacturing Cost 150000.00

Total Working Capital Requirement Per Cycle 605000.00

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 PROJECTED PROFIT & LOSS ACCOUNT

Particulars 1st Year 2nd Year 3rd Year 4th Year

Sales / Receipts 6854400 7833600 8812800 8812800

6854400 7833600 8812800 8812800

Raw materials 4798080 5483520 6168960 6168960

Wages 235200 268800 302400 302400
Repairs & Maintenance 68544 78336 88128 88128
Power & Fuel 137088 156672 176256 176256
Other Overhead Expenses 68544 78336 88128 88128
Depreciation 209250 177863 151183 128506
Production Cost 5516706 6243527 6975055 6952378
Administrative Expenses
Salary 144000 151200 158760 166698
Postage Telephone Expenses 68544 78336 88128 88128
Stationery & Postage 68544 78336 88128 88128
Advertisement & Publicity 68544 78336 88128 88128
Workshed Rent 0 0 0 0
Other Miscellaneous Expenses 68544 78336 88128 88128
Administrative Cost 418176 464544 511272 519210
Interest on Bank credit @ 11%
Term Loan 145778 131200 102044 72889
Working Capital Loan 63223 56900 44256 31611
Cost of Sale 6143882 6896171 7632627 7576088
Net Profit Before Tax 710518 937430 1180173 1236712
Less Tax 0.00 0.00 0.00 0.00
Net Profit 710518 937430 1180173 1236712

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 CALCULATION OF DEBT SERVICE CREDIT RATIO
(D.S.C.R)

Particulars 1st Year 2nd Year 3rd Year 4th Year

Net Profit 710518 937430 1180173 1236712

Add:

Depreciation 209250 177863 151183 128506

TOTAL - A 919768 1115292 1331356 1365218

Payments:

On Term Loan:

Interest 145778 131200 102044 72889

Instalments 132525 265050 265050 265050

On Working Capital

Interest 63223 56900 44256 31611

TOTAL - B 341525 453150 411350 369550

D.S.C.R = A/B
2.69 2.46 3.24 3.69
Average D.S.C. R

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 PROJECTED BALANCE
SHEET

Particulars 1st Year 2nd Year 3rd Year 4th Year

LIABILITIES :

Beneficiary's Capital 100000 100000 100000 100000

Profit 710518 937430 1180173 1236712

Term Loan 1325250 1192725 927675 662625

Working Capital Loan 574750 517275 402325 287375

Current Liabilities 0 0 0 0

Sundry Creditors 0 0 0 0

2710518 2747430 2610173 2286712

ASSETS :

Gross Fixed Assets : 1395000 1185750 1007888 856704

Less : Depreciation 209250 177863 151183 128506

Net Fixed Assets 1185750 1007888 856704 728199

Preliminary & Pre-Op. Expenses 0 0 0 0

Current Assets 574750 517275 402325 287375

Cash in Bank/Hand 950018 1222267 1351144 1271139

Total 2710518 2747430 2610173 2286712

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 CASH FLOW STATEMENT

Particulars 1st Year 2nd Year 3rd Year 4th Year

Net Profit 710518 937430 1180173 1236712

Add : Depreciation 209250 177863 151183 128506

Term Loan 1325250 1192725 927675 662625

Working Capital Loan 574750 517275 402325 287375

Beneficiary's Capital 100000 0 0 0

Total 2919768 2825292 2661356 2315218

Total Fixed Capital Invested 1395000

Repayment of Term Loan 132525 265050 265050 265050

Repayment of WC Loan 57475 114950 114950 114950

Current Assets 574750 517275 402325 287375

Total 764750 897275 782325 667375

Opening Balance 0 2155018 4083035 5962066

Surplus 2155018 1928017 1879031 1647843

Closing Balance 2155018 4083035 5962066 7609909

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 BREAK EVEN POINT AND
RATIO ANALYSIS

Particulars 1st Year 2nd Year 3rd Year 4th Year

Fixed Cost 773204 773606 764499 720604

Variable Cost 5579929 6300427 7019311 6983989

Total Cost 6353132 7074033 7783810 7704593

Sales 6854400 7833600 8812800 8812800

Contribution (Sales-VC) 1274472 1533173 1793489 1828811

B.E.P in % 60.67% 50.46% 42.63% 39.40%

Break Even Sales in Rs. 4158466 3952666 3756577 3472498

Break Even Units 4158466 3952666 3756577 3472498

Current Ratio 1.44 0.91 0.76 0.59

Net Profit Ratio 10.37% 11.97% 13.39% 14.03%

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 THIS PROJECT REPORT HAS BEEN PREPARED ON DATA
FURNISHED BY THE ENTERPRENEUR WHOSE DETAILS
ARE GIVEN IN THE APPLICATION

DATE: - 18-12-2023 Authorized Signatory

PLACE: - MOHIUDDIN NAGAR

Annu Priya

PREPARED BY: -

RITESH KUMAR
(GSTP1092)
Mob-9903393616

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