Detailed Project Report
Cake Making Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹12.88 L
- Term loan from bank
- ₹8.37 L
- Promoter’s contribution
- ₹1.29 L
- Subsidy
- ₹3.22 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.24 L
- Average DSCR
- -1.92
- 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
Bake, layer and decorate cream cakes for birthdays, weddings and celebrations on a small machine line.
| Main product or service | Cake Making Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Families buying for birthdays and anniversaries
- Wedding and event caterers
- Offices and institutions ordering for functions
- Own outlet or bakery counter
- Cake shops and cafés
- Online food-delivery and order apps
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Weighing scale | 1 | 0 | 0 |
| Batter mixing machine | 1 | 0 | 0 |
| Cake depositor machine | 1 | 0 | 0 |
| Baking oven | 1 | 0 | 0 |
| Cake icing and decorating machine | 1 | 0 | 0 |
| Display refrigerator | 1 | 0 | 0 |
| All machinery and equipment (excluding GST and transport) | 1 | 12,27,000 | 12,27,000 |
| Total | 12,27,000 |
Pre-filled from: PMEGP sample project report — Cake Making Unit (prepared by Udyami/Samadhan); World Customs Organization – HS Nomenclature 2022, Chapter 19. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- All-purpose flour (maida), castor sugar, eggs, oil and corn starch — cake base
- Baking powder and vanilla essence — leavening and flavour
- Whipping cream and icing sugar — for icing
- Pineapple juice, canned pineapple and cherries (optional) — for soaking and decoration
- Packing material — packaging ₹20.82 lakh in year 1; raw material ₹226.80 lakh in year 1
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 12.27 |
| Contingency | 0.61 |
| Total fixed capital | 12.88 |
| Working capital margin | 0.00 |
| Total project cost | 12.88 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.29 | 10.0 |
| Subsidy | 3.22 | 25.0 |
| Term loan from bank | 8.37 | 65.0 |
| Total | 12.88 | 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 | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 |
| Insurance | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 |
| Total cost of operations | 3.20 | 3.20 | 3.20 | 3.20 | 3.20 | 3.20 | 3.20 |
| Operating profit (EBITDA) | -3.20 | -3.20 | -3.20 | -3.20 | -3.20 | -3.20 | -3.20 |
| Depreciation | 1.93 | 1.64 | 1.40 | 1.19 | 1.01 | 0.86 | 0.73 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.91 | 0.79 | 0.64 | 0.50 | 0.36 | 0.22 | 0.08 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -6.04 | -5.63 | -5.24 | -4.89 | -4.57 | -4.28 | -4.01 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -6.04 | -5.63 | -5.24 | -4.89 | -4.57 | -4.28 | -4.01 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -6.04 | -5.63 | -5.24 | -4.89 | -4.57 | -4.28 | -4.01 |
| Depreciation | 1.93 | 1.64 | 1.40 | 1.19 | 1.01 | 0.86 | 0.73 |
| Cash accruals (PAT + depreciation) | -4.11 | -3.99 | -3.85 | -3.70 | -3.56 | -3.42 | -3.28 |
| Term loan repaid | 0.64 | 1.29 | 1.29 | 1.29 | 1.29 | 1.29 | 1.29 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.75 | -5.28 | -5.13 | -4.99 | -4.85 | -4.71 | -4.57 |
| Cash and bank | -4.75 | -10.03 | -15.16 | -20.15 | -25.01 | -29.71 | -34.28 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 4.51 | 4.51 | 4.51 | 4.51 | 4.51 | 4.51 | 4.51 |
| Reserves and surplus | -6.04 | -11.67 | -16.91 | -21.80 | -26.37 | -30.65 | -34.66 |
| Term loan outstanding | 7.73 | 6.44 | 5.15 | 3.87 | 2.58 | 1.29 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 6.20 | -0.72 | -7.25 | -13.43 | -19.29 | -24.86 | -30.15 |
| Net fixed assets | 10.95 | 9.31 | 7.91 | 6.73 | 5.72 | 4.86 | 4.13 |
| 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 | -4.75 | -10.03 | -15.16 | -20.15 | -25.01 | -29.71 | -34.28 |
| Total assets | 6.20 | -0.72 | -7.25 | -13.43 | -19.29 | -24.86 | -30.15 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -2.07 | -1.54 | -1.66 | -1.79 | -1.94 | -2.13 | -2.35 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.92 |
|---|---|
| Lowest DSCR | -2.35 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.93 | 1.64 | 1.40 | 1.19 | 1.01 | 0.86 | 0.73 |
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 | 8.37 | 0.91 | 0.64 | 7.73 |
| 2 | 7.73 | 0.79 | 1.29 | 6.44 |
| 3 | 6.44 | 0.64 | 1.29 | 5.15 |
| 4 | 5.15 | 0.50 | 1.29 | 3.87 |
| 5 | 3.87 | 0.36 | 1.29 | 2.58 |
| 6 | 2.58 | 0.22 | 1.29 | 1.29 |
| 7 | 1.29 | 0.08 | 1.29 | 0.00 |
17 Licences and registrations
- FSSAI licence
- Udyam registration
- GST
- Trade licence from the local body
- Fire NOC if required locally
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- PM Formalisation of Micro Food Processing Enterprises (PM FME)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- PMEGP sample project report — Cake Making Unit (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Cake_Makiing_unit_final_%28_Samadhan_Projects_%29.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 19 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/0419_2022e.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.