Detailed Project Report
CNC Engineering Workshop (Precision Job Work)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹42.32 L
- Term loan from bank
- ₹38.08 L
- Promoter’s contribution
- ₹4.23 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-11.45 L
- Average DSCR
- -0.52
- 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 precision components on CNC lathes, mills and EDM as job work for bigger manufacturers.
| Main product or service | CNC Engineering Workshop (Precision Job Work) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Ancillary units of automobile and engineering firms
- Primary manufacturers needing precision parts
- Die and mould users
- Direct job-work contracts
- Vendor registration with large companies
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| EDM machine | 1 | 9,00,000 | 9,00,000 |
| Precision CNC milling machine with attachments | 1 | 8,50,000 | 8,50,000 |
| CNC lathe machine | 1 | 6,00,000 | 6,00,000 |
| Heavy duty milling machine | 1 | 5,00,000 | 5,00,000 |
| Heavy duty pillar drill | 1 | 3,00,000 | 3,00,000 |
| Precision grinding / threading attachments | 1 | 2,50,000 | 2,50,000 |
| Welding and brazing set (× 2) | 1 | 1,60,000 | 1,60,000 |
| Belt grinding and polishing machine | 1 | 1,00,000 | 1,00,000 |
| Lapping machine | 1 | 90,000 | 90,000 |
| Hacksaw machine | 1 | 80,000 | 80,000 |
| Tools and gauges (× 1 lot) | 1 | 2,00,000 | 2,00,000 |
| Total | 40,30,000 |
Pre-filled from: SIDBI Stand-Up Mitra project profile — CNC Engineering Workshop. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Castings and forgings — supplied by customers — the profile books almost no material cost
- Cutting tools, inserts and wearing parts — bought at market rates
- Coolants, lubricants and welding consumables
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 40.30 |
| Contingency | 2.02 |
| Total fixed capital | 42.32 |
| Working capital margin | 0.00 |
| Total project cost | 42.32 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 4.23 | 10.0 |
| Term loan from bank | 38.08 | 90.0 |
| Total | 42.32 | 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 | 0.85 | 0.85 | 0.85 | 0.85 | 0.85 | 0.85 | 0.85 |
| Insurance | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 |
| Total cost of operations | 3.94 | 3.94 | 3.94 | 3.94 | 3.94 | 3.94 | 3.94 |
| Operating profit (EBITDA) | -3.94 | -3.94 | -3.94 | -3.94 | -3.94 | -3.94 | -3.94 |
| Depreciation | 6.35 | 5.40 | 4.59 | 3.90 | 3.31 | 2.82 | 2.39 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 4.12 | 3.57 | 2.93 | 2.28 | 1.64 | 0.99 | 0.35 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -14.41 | -12.90 | -11.45 | -10.12 | -8.89 | -7.75 | -6.68 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -14.41 | -12.90 | -11.45 | -10.12 | -8.89 | -7.75 | -6.68 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -14.41 | -12.90 | -11.45 | -10.12 | -8.89 | -7.75 | -6.68 |
| Depreciation | 6.35 | 5.40 | 4.59 | 3.90 | 3.31 | 2.82 | 2.39 |
| Cash accruals (PAT + depreciation) | -8.06 | -7.51 | -6.86 | -6.22 | -5.58 | -4.93 | -4.29 |
| Term loan repaid | 2.93 | 5.86 | 5.86 | 5.86 | 5.86 | 5.86 | 5.86 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -10.99 | -13.37 | -12.72 | -12.08 | -11.43 | -10.79 | -10.15 |
| Cash and bank | -10.99 | -24.36 | -37.08 | -49.16 | -60.60 | -71.39 | -81.53 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 4.23 | 4.23 | 4.23 | 4.23 | 4.23 | 4.23 | 4.23 |
| Reserves and surplus | -14.41 | -27.31 | -38.76 | -48.88 | -57.77 | -65.52 | -72.20 |
| Term loan outstanding | 35.15 | 29.30 | 23.44 | 17.58 | 11.72 | 5.86 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 24.98 | 6.21 | -11.10 | -27.07 | -41.82 | -55.43 | -67.97 |
| Net fixed assets | 35.97 | 30.57 | 25.99 | 22.09 | 18.78 | 15.96 | 13.57 |
| 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 | -10.99 | -24.36 | -37.08 | -49.16 | -60.60 | -71.39 | -81.53 |
| Total assets | 24.98 | 6.21 | -11.10 | -27.07 | -41.82 | -55.43 | -67.97 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.56 | -0.42 | -0.45 | -0.48 | -0.53 | -0.57 | -0.63 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.52 |
|---|---|
| Lowest DSCR | -0.63 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 6.35 | 5.40 | 4.59 | 3.90 | 3.31 | 2.82 | 2.39 |
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 | 38.08 | 4.12 | 2.93 | 35.15 |
| 2 | 35.15 | 3.57 | 5.86 | 29.30 |
| 3 | 29.30 | 2.93 | 5.86 | 23.44 |
| 4 | 23.44 | 2.28 | 5.86 | 17.58 |
| 5 | 17.58 | 1.64 | 5.86 | 11.72 |
| 6 | 11.72 | 0.99 | 5.86 | 5.86 |
| 7 | 5.86 | 0.35 | 5.86 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Factory licence when worker numbers cross the limit
- ESI and PF registration
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- SIDBI Stand-Up Mitra project profile — CNC Engineering Workshop — https://www.standupmitra.in/Default/ViewFile/?id=1516894544331_CNC%20Engineering%20Workshop.docx&path=ProjectProfile
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.