Detailed Project Report
Carpenter's Auger and Wood Drill Bits
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹110.67 L
- Term loan from bank
- ₹99.60 L
- Promoter’s contribution
- ₹11.07 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-25.30 L
- Average DSCR
- -0.29
- 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
Machine high speed steel rod into spiral auger bits, harden and grind them, and sell them to carpenters, furniture makers and tool dealers.
| Main product or service | Carpenter's Auger and Wood Drill Bits |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Carpenters and furniture workshops
- Office furniture and modular-kitchen makers
- Hardware and power-tool dealers
- Construction and metal-working users of drill bits
- Hardware and tool distributors
- Direct supply to furniture factories
- Online tool marketplaces
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Multi-axis CNC machine | 1 | 50,00,000 | 50,00,000 |
| Heat treatment unit with case-carburising furnace and charging trays | 1 | 20,00,000 | 20,00,000 |
| Surface grinder | 1 | 14,00,000 | 14,00,000 |
| Milling machine | 1 | 5,40,000 | 5,40,000 |
| Power hydraulic press | 1 | 4,60,000 | 4,60,000 |
| Lathe / turret machine | 1 | 2,60,000 | 2,60,000 |
| Tool and cutter grinder | 1 | 2,40,000 | 2,40,000 |
| Automatic band saw machine | 1 | 1,60,000 | 1,60,000 |
| Generator 15 KVA | 1 | 3,20,000 | 3,20,000 |
| Measuring instruments and testing equipment | 1 | 1,60,000 | 1,60,000 |
| Total | 1,05,40,000 |
Pre-filled from: DC-MSME import-substitution DPR — Auger, Carpenter. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- High speed steel — 3,200 kg a month at ₹800 a kg
- Coolant and quenching oil — ₹1,00,000 a month
- Packing material — ₹2,00,000 a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 105.40 |
| Contingency | 5.27 |
| Total fixed capital | 110.67 |
| Working capital margin | 0.00 |
| Total project cost | 110.67 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 11.07 | 10.0 |
| Term loan from bank | 99.60 | 90.0 |
| Total | 110.67 | 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 | 2.21 | 2.21 | 2.21 | 2.21 | 2.21 | 2.21 | 2.21 |
| Insurance | 0.55 | 0.55 | 0.55 | 0.55 | 0.55 | 0.55 | 0.55 |
| Total cost of operations | 5.65 | 5.65 | 5.65 | 5.65 | 5.65 | 5.65 | 5.65 |
| Operating profit (EBITDA) | -5.65 | -5.65 | -5.65 | -5.65 | -5.65 | -5.65 | -5.65 |
| Depreciation | 16.60 | 14.11 | 11.99 | 10.19 | 8.67 | 7.37 | 6.26 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 10.78 | 9.34 | 7.66 | 5.97 | 4.28 | 2.60 | 0.91 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -33.03 | -29.10 | -25.30 | -21.81 | -18.60 | -15.61 | -12.82 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -33.03 | -29.10 | -25.30 | -21.81 | -18.60 | -15.61 | -12.82 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -33.03 | -29.10 | -25.30 | -21.81 | -18.60 | -15.61 | -12.82 |
| Depreciation | 16.60 | 14.11 | 11.99 | 10.19 | 8.67 | 7.37 | 6.26 |
| Cash accruals (PAT + depreciation) | -16.43 | -14.99 | -13.30 | -11.62 | -9.93 | -8.25 | -6.56 |
| Term loan repaid | 7.66 | 15.32 | 15.32 | 15.32 | 15.32 | 15.32 | 15.32 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -24.09 | -30.31 | -28.63 | -26.94 | -25.25 | -23.57 | -21.88 |
| Cash and bank | -24.09 | -54.40 | -83.03 | -109.97 | -135.22 | -158.79 | -180.67 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 11.07 | 11.07 | 11.07 | 11.07 | 11.07 | 11.07 | 11.07 |
| Reserves and surplus | -33.03 | -62.13 | -87.42 | -109.23 | -127.83 | -143.44 | -156.26 |
| Term loan outstanding | 91.94 | 76.62 | 61.29 | 45.97 | 30.65 | 15.32 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 69.98 | 25.56 | -15.06 | -52.20 | -86.12 | -117.05 | -145.19 |
| Net fixed assets | 94.07 | 79.96 | 67.97 | 57.77 | 49.10 | 41.74 | 35.48 |
| 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 | -24.09 | -54.40 | -83.03 | -109.97 | -135.22 | -158.79 | -180.67 |
| Total assets | 69.98 | 25.56 | -15.06 | -52.20 | -86.12 | -117.05 | -145.19 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.31 | -0.23 | -0.25 | -0.27 | -0.29 | -0.32 | -0.35 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.29 |
|---|---|
| Lowest DSCR | -0.35 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 16.60 | 14.11 | 11.99 | 10.19 | 8.67 | 7.37 | 6.26 |
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 | 99.60 | 10.78 | 7.66 | 91.94 |
| 2 | 91.94 | 9.34 | 15.32 | 76.62 |
| 3 | 76.62 | 7.66 | 15.32 | 61.29 |
| 4 | 61.29 | 5.97 | 15.32 | 45.97 |
| 5 | 45.97 | 4.28 | 15.32 | 30.65 |
| 6 | 30.65 | 2.60 | 15.32 | 15.32 |
| 7 | 15.32 | 0.91 | 15.32 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Factory licence
- State Pollution Control Board consent (heat treatment and quenching oil)
- Fire safety clearance
- BIS licence if you want the ISI mark under IS 2852
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- DC-MSME import-substitution DPR — Auger, Carpenter — https://dcmsme.gov.in/25_Auger%20Carpenter%20by%20SV%20Sharma.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.