Detailed Project Report
Chalk Making (Extruded Chalk)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹2.65 L
- Term loan from bank
- ₹1.72 L
- Promoter’s contribution
- ₹0.27 L
- Subsidy
- ₹0.66 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.37 L
- Average DSCR
- -8.60
- 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
Make writing chalk on a small chalk machine for schools and stationery shops.
| Main product or service | Chalk Making (Extruded Chalk) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Schools and colleges
- Coaching and training centres
- Stationery wholesalers and shops
- Direct supply to schools
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Chalk machine | 1 | 1,80,000 | 1,80,000 |
| Drying oven | 1 | 52,500 | 52,500 |
| Aluminium mould | 1 | 20,000 | 20,000 |
| Total | 2,52,500 |
Pre-filled from: PMEGP sample project report — Chalk Making (prepared by Udyami/Samadhan); World Customs Organization – HS Nomenclature 2022, Chapter 96. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Calcium carbonate — main raw material; ₹15 per kg in year 1 in the report
- Calcium sulphate (gypsum, CaSO4) — dehydrated and mixed into the slurry
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 2.53 |
| Contingency | 0.13 |
| Total fixed capital | 2.65 |
| Working capital margin | 0.00 |
| Total project cost | 2.65 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.27 | 10.0 |
| Subsidy | 0.66 | 25.0 |
| Term loan from bank | 1.72 | 65.0 |
| Total | 2.65 | 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 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 |
| 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 | 0.40 | 0.34 | 0.29 | 0.24 | 0.21 | 0.18 | 0.15 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.19 | 0.16 | 0.13 | 0.10 | 0.07 | 0.04 | 0.02 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.53 | -3.45 | -3.37 | -3.29 | -3.23 | -3.17 | -3.11 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.53 | -3.45 | -3.37 | -3.29 | -3.23 | -3.17 | -3.11 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.53 | -3.45 | -3.37 | -3.29 | -3.23 | -3.17 | -3.11 |
| Depreciation | 0.40 | 0.34 | 0.29 | 0.24 | 0.21 | 0.18 | 0.15 |
| Cash accruals (PAT + depreciation) | -3.13 | -3.11 | -3.08 | -3.05 | -3.02 | -2.99 | -2.96 |
| Term loan repaid | 0.13 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.27 | -3.37 | -3.34 | -3.31 | -3.29 | -3.26 | -3.23 |
| Cash and bank | -3.27 | -6.64 | -9.98 | -13.30 | -16.58 | -19.84 | -23.07 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.93 | 0.93 | 0.93 | 0.93 | 0.93 | 0.93 | 0.93 |
| Reserves and surplus | -3.53 | -6.98 | -10.34 | -13.64 | -16.86 | -20.03 | -23.14 |
| Term loan outstanding | 1.59 | 1.33 | 1.06 | 0.80 | 0.53 | 0.27 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -1.01 | -4.72 | -8.35 | -11.91 | -15.41 | -18.84 | -22.22 |
| Net fixed assets | 2.25 | 1.92 | 1.63 | 1.38 | 1.18 | 1.00 | 0.85 |
| 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 | -3.27 | -6.64 | -9.98 | -13.30 | -16.58 | -19.84 | -23.07 |
| Total assets | -1.01 | -4.72 | -8.35 | -11.91 | -15.41 | -18.84 | -22.22 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -9.23 | -6.90 | -7.41 | -8.00 | -8.68 | -9.50 | -10.49 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -8.60 |
|---|---|
| Lowest DSCR | -10.49 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.40 | 0.34 | 0.29 | 0.24 | 0.21 | 0.18 | 0.15 |
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 | 1.72 | 0.19 | 0.13 | 1.59 |
| 2 | 1.59 | 0.16 | 0.27 | 1.33 |
| 3 | 1.33 | 0.13 | 0.27 | 1.06 |
| 4 | 1.06 | 0.10 | 0.27 | 0.80 |
| 5 | 0.80 | 0.07 | 0.27 | 0.53 |
| 6 | 0.53 | 0.04 | 0.27 | 0.27 |
| 7 | 0.27 | 0.02 | 0.27 | 0.00 |
17 Licences and registrations
- GST
- Udyam
- Fire and pollution registration as required
- Trademark for the brand
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
19 Sources
- PMEGP sample project report — Chalk Making (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Chalk_making_%28_Samadhan_Projects_%29.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 96 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/2096_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.