Detailed Project Report
AC & Refrigerator Repair Centre
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹2.86 L
- Term loan from bank
- ₹1.86 L
- Promoter’s contribution
- ₹0.29 L
- Subsidy
- ₹0.71 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.40 L
- Average DSCR
- -8.00
- Break-even (% of capacity used)
- —
02 Promoter and unit
| Promoter name | — |
|---|---|
| Business / firm name | — |
| Legal form | Proprietorship |
| Address of the unit | — |
| Applicant category | General · Rural |
03 The project
In summer the phone never stops — a trusted name for AC and fridge service.
| Main product or service | AC & Refrigerator Repair Centre |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Households
- Shops, offices, hospitals and laboratories
- Hotels, food processing units and cold storages
- Customers bringing appliances to the workshop
- Visits to the customer's site
- Annual maintenance contracts (AMC) with big organisations
- Sale of spare parts and accessories
- Flyers, online listing and referrals from local businesses
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Multimeters (× 2) | 1 | 30,000 | 30,000 |
| Refrigerant leak detectors (× 2) | 1 | 16,000 | 16,000 |
| Pressure gauge sets (× 2) | 1 | 36,000 | 36,000 |
| Thermometer | 1 | 12,000 | 12,000 |
| Tool kit (screwdrivers, pliers etc.) (× 1 set) | 1 | 25,000 | 25,000 |
| Refrigerant recovery machine | 1 | 28,000 | 28,000 |
| AC vacuum pump | 1 | 22,000 | 22,000 |
| Welding machine | 1 | 18,000 | 18,000 |
| Compressor test rig | 1 | 25,000 | 25,000 |
| Tool chest | 1 | 10,000 | 10,000 |
| Laptop / desktop | 1 | 50,000 | 50,000 |
| Total | 2,72,000 |
Pre-filled from: UP MSME 1-Connect (Govt of UP, RAMP) – Project Report: Refrigerator & AC Repairing Unit; UP MSME 1-Connect – Business category page: Refrigerator & AC Repairing Unit. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Spare parts: capacitors, compressors, condenser and evaporator coils, fans, motors
- Refrigerant gas — for refills during servicing
- Cleaning agents and brushes — for coils and filters
- Safety gear: gloves, safety glasses, masks
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 2.72 |
| Contingency | 0.14 |
| Total fixed capital | 2.86 |
| Working capital margin | 0.00 |
| Total project cost | 2.86 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.29 | 10.0 |
| Subsidy | 0.71 | 25.0 |
| Term loan from bank | 1.86 | 65.0 |
| Total | 2.86 | 100.0 |
| Working capital loan (outside project cost) | 0.00 |
09 Key assumptions
| Selling price | ₹0 per units |
|---|---|
| Raw material & packing cost | ₹0 per units |
| Capacity used each year | 60% · 70% · 80% · 80% · 80% · 80% · 80% |
| Term loan interest rate (% a year) | 11% · 84 months (Moratorium 6) |
| Working capital method | Turnover method (RBI) · Working capital interest (% a year) 11% |
| Income tax rate | 25% |
| Yearly price and cost rise | 0% |
10 Production and sales
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capacity used | 60% | 70% | 80% | 80% | 80% | 80% | 80% |
| Production (units) | 6,000 | 7,000 | 8,000 | 8,000 | 8,000 | 8,000 | 8,000 |
| Sales | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
11 Projected profitability
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Sales | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Raw material and packing | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Power and fuel | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Salaries and wages | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 |
| Rent | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Administration | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Selling and distribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Repairs and maintenance | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 |
| Insurance | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Total cost of operations | 2.95 | 2.95 | 2.95 | 2.95 | 2.95 | 2.95 | 2.95 |
| Operating profit (EBITDA) | -2.95 | -2.95 | -2.95 | -2.95 | -2.95 | -2.95 | -2.95 |
| Depreciation | 0.43 | 0.36 | 0.31 | 0.26 | 0.22 | 0.19 | 0.16 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.20 | 0.17 | 0.14 | 0.11 | 0.08 | 0.05 | 0.02 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.58 | -3.49 | -3.40 | -3.33 | -3.25 | -3.19 | -3.13 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.58 | -3.49 | -3.40 | -3.33 | -3.25 | -3.19 | -3.13 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.58 | -3.49 | -3.40 | -3.33 | -3.25 | -3.19 | -3.13 |
| Depreciation | 0.43 | 0.36 | 0.31 | 0.26 | 0.22 | 0.19 | 0.16 |
| Cash accruals (PAT + depreciation) | -3.15 | -3.13 | -3.09 | -3.06 | -3.03 | -3.00 | -2.97 |
| Term loan repaid | 0.14 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 | 0.29 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.30 | -3.41 | -3.38 | -3.35 | -3.32 | -3.29 | -3.25 |
| Cash and bank | -3.30 | -6.71 | -10.09 | -13.43 | -16.75 | -20.04 | -23.29 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
| Reserves and surplus | -3.58 | -7.07 | -10.47 | -13.80 | -17.05 | -20.24 | -23.37 |
| Term loan outstanding | 1.71 | 1.43 | 1.14 | 0.86 | 0.57 | 0.29 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -0.87 | -4.64 | -8.33 | -11.94 | -15.48 | -18.96 | -22.37 |
| Net fixed assets | 2.43 | 2.06 | 1.75 | 1.49 | 1.27 | 1.08 | 0.92 |
| Preliminary expenses not written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Current assets (stock and debtors) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Cash and bank | -3.30 | -6.71 | -10.09 | -13.43 | -16.75 | -20.04 | -23.29 |
| Total assets | -0.87 | -4.64 | -8.33 | -11.94 | -15.48 | -18.96 | -22.37 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -8.59 | -6.42 | -6.89 | -7.44 | -8.08 | -8.84 | -9.75 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -8.00 |
|---|---|
| Lowest DSCR | -9.75 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.43 | 0.36 | 0.31 | 0.26 | 0.22 | 0.19 | 0.16 |
Written-down value method at Income-tax Rules block rates (building 10%, plant & machinery 15%, furniture 10%, computers 40%). Change them if your CA uses other rates.
16 Term loan repayment
| Year | Opening | Interest | Term loan repaid | Closing |
|---|---|---|---|---|
| 1 | 1.86 | 0.20 | 0.14 | 1.71 |
| 2 | 1.71 | 0.17 | 0.29 | 1.43 |
| 3 | 1.43 | 0.14 | 0.29 | 1.14 |
| 4 | 1.14 | 0.11 | 0.29 | 0.86 |
| 5 | 0.86 | 0.08 | 0.29 | 0.57 |
| 6 | 0.57 | 0.05 | 0.29 | 0.29 |
| 7 | 0.29 | 0.02 | 0.29 | 0.00 |
17 Licences and registrations
- Shop & Establishment
- Udyam
- GST (above the limit)
- Refrigerant handling training (Ozone Cell/skill certification) — recommended
18 Government schemes that may apply
- Mukhyamantri Yuva Udyami Vikas Abhiyan (CM-YUVA)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- UP MSME 1-Connect (Govt of UP, RAMP) – Project Report: Refrigerator & AC Repairing Unit — https://msme1connect.up.gov.in/Projectreport/Project%20Report638665738882404441.pdf
- UP MSME 1-Connect – Business category page: Refrigerator & AC Repairing Unit — https://msme1connect.up.gov.in/Home/BusinessDetails?Id=87
- Devbhoomi Udyamita Yojana (Govt of Uttarakhand, Higher Education Dept) – Project Profile: Fridge and AC Repairing — https://duy-heduk.org/downloads/project-profiles/fridge-and-ac-repairing.pdf
This report is a projection from the figures entered by the promoter. It is not a bank appraisal or a guarantee of a loan or subsidy. Check every figure with current quotations and your chartered accountant before submitting it.