Detailed Project Report
Engineering Scale (Acrylic Ruler) Making
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹16.22 L
- Term loan from bank
- ₹10.54 L
- Promoter’s contribution
- ₹1.62 L
- Subsidy
- ₹4.06 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.85 L
- Average DSCR
- -1.57
- 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
Cut acrylic sheet into 12-inch scales, polish the edges and print fine graduations on an automated marking machine.
| Main product or service | Engineering Scale (Acrylic Ruler) Making |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Schools and science colleges
- Architects and drawing offices
- Engineering workshops
- Stationery wholesalers and retailers
- Institutional supply to schools and colleges
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Automated scale marking machine with accessories, graduation accuracy 0.01 mm | 1 | 14,85,000 | 14,85,000 |
| Bevel-edge grinding machine, bench type, 8 inch wheel | 1 | 18,000 | 18,000 |
| Bench pantograph engraving machine, 16 inch table | 1 | 15,000 | 15,000 |
| Band saw, bench model, 8 inch wheel | 1 | 12,000 | 12,000 |
| Linear polishing machine | 1 | 8,000 | 8,000 |
| Double-ended bench grinder, 6 inch wheel | 1 | 7,000 | 7,000 |
| Total | 15,45,000 |
Pre-filled from: DC-MSME project profile — Engineering Scale. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Acrylic sheet, 1/8 inch thick, transparent or milky white — 500 kg a month, ₹72,500
- Marking ink, polishing and buffing material — ₹5,000 a month
- Packing cases, cartons and plastic bags — ₹2,500 a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 15.45 |
| Contingency | 0.77 |
| Total fixed capital | 16.22 |
| Working capital margin | 0.00 |
| Total project cost | 16.22 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.62 | 10.0 |
| Subsidy | 4.06 | 25.0 |
| Term loan from bank | 10.54 | 65.0 |
| Total | 16.22 | 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 | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 |
| Insurance | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 |
| Total cost of operations | 3.29 | 3.29 | 3.29 | 3.29 | 3.29 | 3.29 | 3.29 |
| Operating profit (EBITDA) | -3.29 | -3.29 | -3.29 | -3.29 | -3.29 | -3.29 | -3.29 |
| Depreciation | 2.43 | 2.07 | 1.76 | 1.49 | 1.27 | 1.08 | 0.92 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.14 | 0.99 | 0.81 | 0.63 | 0.45 | 0.28 | 0.10 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -6.86 | -6.34 | -5.85 | -5.41 | -5.01 | -4.64 | -4.30 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -6.86 | -6.34 | -5.85 | -5.41 | -5.01 | -4.64 | -4.30 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -6.86 | -6.34 | -5.85 | -5.41 | -5.01 | -4.64 | -4.30 |
| Depreciation | 2.43 | 2.07 | 1.76 | 1.49 | 1.27 | 1.08 | 0.92 |
| Cash accruals (PAT + depreciation) | -4.43 | -4.27 | -4.10 | -3.92 | -3.74 | -3.56 | -3.38 |
| Term loan repaid | 0.81 | 1.62 | 1.62 | 1.62 | 1.62 | 1.62 | 1.62 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.24 | -5.90 | -5.72 | -5.54 | -5.36 | -5.18 | -5.00 |
| Cash and bank | -5.24 | -11.13 | -16.85 | -22.39 | -27.75 | -32.94 | -37.94 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 5.68 | 5.68 | 5.68 | 5.68 | 5.68 | 5.68 | 5.68 |
| Reserves and surplus | -6.86 | -13.20 | -19.06 | -24.47 | -29.48 | -34.12 | -38.42 |
| Term loan outstanding | 9.73 | 8.11 | 6.49 | 4.87 | 3.24 | 1.62 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 8.55 | 0.59 | -6.89 | -13.92 | -20.56 | -26.82 | -32.74 |
| Net fixed assets | 13.79 | 11.72 | 9.96 | 8.47 | 7.20 | 6.12 | 5.20 |
| 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 | -5.24 | -11.13 | -16.85 | -22.39 | -27.75 | -32.94 | -37.94 |
| Total assets | 8.55 | 0.59 | -6.89 | -13.92 | -20.56 | -26.82 | -32.74 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.68 | -1.26 | -1.35 | -1.46 | -1.58 | -1.73 | -1.91 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.57 |
|---|---|
| Lowest DSCR | -1.91 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.43 | 2.07 | 1.76 | 1.49 | 1.27 | 1.08 | 0.92 |
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 | 10.54 | 1.14 | 0.81 | 9.73 |
| 2 | 9.73 | 0.99 | 1.62 | 8.11 |
| 3 | 8.11 | 0.81 | 1.62 | 6.49 |
| 4 | 6.49 | 0.63 | 1.62 | 4.87 |
| 5 | 4.87 | 0.45 | 1.62 | 3.24 |
| 6 | 3.24 | 0.28 | 1.62 | 1.62 |
| 7 | 1.62 | 0.10 | 1.62 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Trade licence from the local body
- Legal Metrology requirements for measuring instruments — check with the state department before selling
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- DC-MSME project profile — Engineering Scale — https://www.dcmsme.gov.in/old/reports/mechanical/EngineeringScales.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.