Prominent Notes: - Securities and Exchange Board of India

The project is to set-up a manufacturing unit to produce and sell forging products based on Open-die
forging facility mainly for non-automotive sectors. The project will be situated at GIDC Industrial
Estate (at plot no. 1401, 1402 & 1403), Waghodia, district Vadodara. With setting up the
manufacturing unit, we want to capitalize on the growth opportunities in forged items for nonautomotive
sectors. The new facility will have a total capacity of 15000 MTPA with a maximum size
of a single-piece forging unit upto 40 MT. We planned our expansion based on the experience of
running an existing forging plant, observing demand trends for forging items, both in the local market
as well as in exports market.
The cost of the New Project has been appraised to be ` 12,039 Lacs, comprising `10,013 lacs towards
Fixed Assets and utilities, ` 825 lacs towards margin for working capital, ` 501 for contingencies and `
700 lacs towards preliminary & pre-operative expenses.
The summary of cost of the project is as under:
(` in Lacs)
Particulars Total Cost
Land --
Site Development 198
Building and Civil Works 1462
Plant and Machinery (Imported and Indigenous) 7461
Utilities & Electrification 763
Miscellaneous Fixed Assets 129
Contingency 501
Pre-operative Expenses 700
Total Capital Cost 11214
Margin for Working Capital 825
Total Project Cost 12039
Land
The company has entered into a Lease Deed dated March 01, 2011 with Gujarat Industrial
Development Corporation (GIDC) in respect of the land for the New Project for a period of 99 years
w.e.f November 30, 2006 with an option to renew the same for a further period of 99 years. The land
bearing plot no. 1401, 1402 and 1403 is situated at GIDC Industrial Estate, Village Waghodia, District
Vadodara. The company has made the full payment for the premium price of the plot no. 1401, 1402
and 1403 at Vaghodia Industrial Estate, Vadodara.
The cost of the land is not part of the current project cost.
Site development
The estimated cost of site development includes cost towards earth filling, compound wall, bituminous
road, water recharge system, parking sewage treatment etc. The total amount estimated to be spent is `
198 lacs.
Particulars Amount (in `
Lacs)
Earth Filing 50
Compound Wall 27
Bituminous Road 40
Road Side Drainage/Path 12
Entrance Gate 6
Land Scaping 10
Parking 11
Security Cabin 8
Water Recharge System 5
Water Supply Pipe Network 2
Sanitary Disposal Piping 5
Miscellaneous expenditure 22
Total 198
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