(Rs. in Lakhs)
Particulars Amount
Initial Public Offering [•]
Internal Accruals [•]
Total [•]
The entire fund requirement towards the aforesaid Objects of the Issue is proposed to be funded through the proceeds from the Issue.
In the event of a shortfall in raising the requisite capital from the proceeds of the Issue, towards meeting the Objects of the Issue, the extent of the shortfall will be met by internal accruals and/or from fresh debt. DETAILS OF THE OBJECTS OF THE ISSUE
I. PURCHASE OF ROAD MARKING MACHINES TO INCREASE THE CONTRACTING CAPACITY AND SETTING UP A PLANT FOR MANUFACTURE OF ROAD MARKING MACHINES
(A) Purchase of Road Marking Machines to increase the contracting capacity
Currently we are operating with total capacity of 8 (eight) lacs square meter per annum for contracts related to Road Marking contracts, i.e. we have the machineries with which we can apply Road Markings on 8 (eight) lacs square meters of the surface of the road in a year. With the growing investments in India as well as across the globe for the development of the road infrastructure, the need for Road Marking is increasing exponentially. Since the completion of these projects is deadline oriented with hefty penalties for delays there is a need for quicker Road Marking systems. Other than the new projects which are under construction, the projects already completed also need to be re-marked and ongoing maintenance. In this era of heavy traffic, where traffic cannot be blocked for long, faster marking machineries are a necessity for re-marking on existing roads. To cater to this demand we intend to automate our projects by increasing our application capacity with new machines.
The estimated break up of cost for increase in existing capacity is as under: Sr.
No. Expenditure Items (Rs. in Lacs) Amount
1. Plant & Machinery 1,751.05
2. Preliminary and Pre-operative expenses 35.00
3. Provision for Contingencies 35.00
Plant and Machinery
The total estimated cost of plant and machinery to be installed in the facility is Rs. 1,751.05 Lacs. The estimates of cost of plant and machinery are based on the quotations and correspondences received from various suppliers as listed below. The cost break-up of plant and machinery is as follows:
Sr.
No. Particulars Supplier / Manufacturer Purchase Qty (INR) Rate Amount (Rs. in Lacs) Customs and Other Statutory Levies Total Cost
1 Borum machines Borum Industri A/S,
Denmark
5 113.50 567.52 141.88 709.40
2 Borum preheaters (Used to heat the Road Marking material beforehand of application)
Borum Industri A/S,
Denmark 5 16.49 82.47 20.63 103.10
3 Unimark extrusion
machines Unimark Limited, Thailand 3 21.83 65.48 16.37 81.85
4 Unimark spray plastic machine
Unimark Limited, Thailand
1 22.63 22.63 5.66 28.29
5 Profile machine from
Unimark Unimark Limited, Thailand 1 22.92 22.92 5.73 28.65
6 ATOM machines Donear Trading Pvt. Ltd.,
Mumbai, India
10 21.00 210.00 Nil 210.00
7 Pre-Heaters for Unimark and atom machines(750 Lt capacity)
Unimark Limited,
Thailand. 15 6.39 95.81 23.96 119.77
8 Trucks for carrying pre- heaters and marking machines
Girnar Motors, India 25 10.94 273.38 Nil 273.38
9 Equipment for testing at site - luminance meter, skid tester
Jay Instruments and Systems Private Limited
5 16.76 83.79 20.95 104.74
10 Mobile reflectometer (To test the reflectivity of Road Marking)
Not Identified 1 73.50 73.50 18.37 91.87
Total 1751.05
Preliminary and Pre-Operative Expenses
Pre-operative and preliminary expenses mainly consist of start up and trial run expenses, establishment and project management expenses, engineering and consultancy fees, upfront fees, etc. The pre operative and preliminary expenses as estimated by the management would be Rs. 35 Lacs.
Provision for Contingencies
In the event of any cost overruns due to any changes in quoted prices of plant & machinery for which orders have not yet been placed, or on account of time variation, transportation cost, insurance, unexpected price rise due to factors beyond our control, contingencies have been provided to cover any such eventuality which may occur. Contingencies of Rs. 35.00 Lacs have been estimated, which is approximately 2% of the cost of plant & machinery.
(B) Setting up a plant for manufacture of thermoplastic Road Marking machines
The demand for Road Marking Machinery has been increasing manifolds from domestic as well as international customers. In the past we have catered mainly to our in-house requirements of machinery. Worldwide there is a large market for economical automatic Road Marking machines. With our experience in Road Marking and manufacture of machines we intend to expand our facilities to cater to this demand. We intend to set up the plant at the land situated at Nagpur adjacent to our factory of manufacturing Road Marking material. The land is owned by M/s. Ashirwad Real Estate, our group enterprise, which has leased the land to our Subsidiary i.e. Automark Technologies (I) Pvt Ltd. We have demarked approximately 10,000 sq. feet of area for setting up the plant for manufacture of Road Marking machines. Due to availability of this land, the Company need not to identify the location for setting the plant and also we can curtail the investment in land.
The estimated break up of cost for the setting up plant for manufacture of Road Marking machines are as follows:
Sr.
No. Expenditure Items (Rs. in Lacs) Amount
1 Establishment of factory shed for manufacture of thermoplastic Road
Marking machines (Approx. 10,000 Sq. ft ) 84.23
2 Production machines for manufacture of thermoplastic Road Marking
machines 97.00
3 Genset 7.18
TOTAL 188.41
1. Establishment of factory shed for manufacture of thermoplastic Road Marking machines (Approx. 10,000 Sq. ft)
We plan to establish the factory shed at the above land for a total cost of Rs. 84.23 Lacs. The same cost has been arrived based on certificate issued by Design Cell, our architects and planners.
2. Production machines for manufacture of thermoplastic Road Marking machines
We intend to setup machine manufacturing facility in the factory shed to be constructed as detailed herein above. The cost of Rs. 97.00 Lacs is inclusive of local taxes and based on the quotation received from Central Engineering Corporation.
3. Genset
The cost of the Genset is Rs. 7.18 Lacs inclusive of taxes based on quotation from Shubham Sales, Nagpur.
II. SETUP OF THERMOPLASTIC ROAD MARKING MATERIAL MANUFACTURING AND CONTRACTING