Detailed Project Report
Gasket Shellac Compound (Gasket Cement)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹0.11 L
- Term loan from bank
- ₹0.07 L
- Promoter’s contribution
- ₹0.01 L
- Subsidy
- ₹0.03 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-2.90 L
- Average DSCR
- -212.53
- 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
Mix shellac into a sealing compound that keeps petrol and gas joints leak-proof.
| Main product or service | Gasket Shellac Compound (Gasket Cement) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Automobile repair workshops and mechanics
- Engine and pump repairers
- Aviation and industrial maintenance units
- Auto-parts and hardware dealers
- Direct supply to workshops
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Stainless-steel vessel with lid and stop cock | 1 | 0 | 0 |
| Stirrer with motor and speed regulator | 1 | 0 | 0 |
| Weighing balance, measuring cylinder, gravity meter and tools (× 1 set) | 1 | 0 | 0 |
| Equipment total in the profile (× 1 set) | 1 | 10,000 | 10,000 |
| Total | 10,000 |
Pre-filled from: KVIC Project Profile — Production of Gasket Shellac Compound (Gasket Cement) (PMEGP); World Customs Organization – HS Nomenclature 2022, Chapter 32. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Shellac — the main ingredient; raw material ₹2.00 lakh a year in the profile
- Solvents and other ingredients — the profile does not print the full formula
- Tins, tubes and labels — ₹5,000 a year in the profile
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 0.10 |
| Contingency | 0.01 |
| Total fixed capital | 0.11 |
| Working capital margin | 0.00 |
| Total project cost | 0.11 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.01 | 10.0 |
| Subsidy | 0.03 | 25.0 |
| Term loan from bank | 0.07 | 65.0 |
| Total | 0.11 | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Insurance | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total cost of operations | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 |
| Operating profit (EBITDA) | -2.88 | -2.88 | -2.88 | -2.88 | -2.88 | -2.88 | -2.88 |
| Depreciation | 0.02 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -2.91 | -2.90 | -2.90 | -2.90 | -2.89 | -2.89 | -2.89 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -2.91 | -2.90 | -2.90 | -2.90 | -2.89 | -2.89 | -2.89 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -2.91 | -2.90 | -2.90 | -2.90 | -2.89 | -2.89 | -2.89 |
| Depreciation | 0.02 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Cash accruals (PAT + depreciation) | -2.89 | -2.89 | -2.89 | -2.89 | -2.89 | -2.88 | -2.88 |
| Term loan repaid | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -2.90 | -2.90 | -2.90 | -2.90 | -2.90 | -2.89 | -2.89 |
| Cash and bank | -2.90 | -5.79 | -8.69 | -11.59 | -14.49 | -17.38 | -20.28 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 |
| Reserves and surplus | -2.91 | -5.81 | -8.71 | -11.60 | -14.50 | -17.39 | -20.28 |
| Term loan outstanding | 0.06 | 0.05 | 0.04 | 0.03 | 0.02 | 0.01 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -2.81 | -5.72 | -8.63 | -11.54 | -14.44 | -17.34 | -20.24 |
| Net fixed assets | 0.09 | 0.08 | 0.06 | 0.05 | 0.05 | 0.04 | 0.03 |
| 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 | -2.90 | -5.79 | -8.69 | -11.59 | -14.49 | -17.38 | -20.28 |
| Total assets | -2.81 | -5.72 | -8.63 | -11.54 | -14.44 | -17.34 | -20.24 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -228.11 | -170.56 | -183.07 | -197.57 | -214.55 | -234.73 | -259.10 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -212.53 |
|---|---|
| Lowest DSCR | -259.10 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.02 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
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 | 0.07 | 0.01 | 0.01 | 0.06 |
| 2 | 0.06 | 0.01 | 0.01 | 0.05 |
| 3 | 0.05 | 0.01 | 0.01 | 0.04 |
| 4 | 0.04 | 0.00 | 0.01 | 0.03 |
| 5 | 0.03 | 0.00 | 0.01 | 0.02 |
| 6 | 0.02 | 0.00 | 0.01 | 0.01 |
| 7 | 0.01 | 0.00 | 0.01 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Trade licence from the local body
- Fire NOC (flammable solvents stored)
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- KVIC Project Profile — Production of Gasket Shellac Compound (Gasket Cement) (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/PRODUCTION_OF_GASKET_SHELLAC_COMPOUND_%28GASKET_CEMENT%29_%28_MINERAL_BASED_INDUSTRY_%29.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 32 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/0632_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.