Detailed Project Report
Hinges, Hasps and Staples (Builders' Hardware)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹37.36 L
- Term loan from bank
- ₹33.62 L
- Promoter’s contribution
- ₹3.74 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-10.45 L
- Average DSCR
- -0.57
- 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, press, bend and finish steel and aluminium into door hinges, hasps and staples for doors, windows and furniture.
| Main product or service | Hinges, Hasps and Staples (Builders' Hardware) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Builders' hardware wholesalers and retailers
- Door, window and furniture makers
- Builders and contractors
- Makers of boxes, trunks and cabinets
- Hardware wholesalers and distributors
- Direct supply to furniture and door factories
- Own brand sold through hardware shops
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Power presses (× 2) | 1 | 10,00,000 | 10,00,000 |
| Punching machine with punches, hand operated, up to 8 mm plate | 1 | 4,00,000 | 4,00,000 |
| Anodising bath with a complete set of polishing machines (× 1 set) | 1 | 4,00,000 | 4,00,000 |
| Universal milling machine | 1 | 3,00,000 | 3,00,000 |
| Hand-operated bending machines (× 2) | 1 | 2,00,000 | 2,00,000 |
| Sheet shearing machine | 1 | 2,00,000 | 2,00,000 |
| Lathe, 600 mm swing | 1 | 2,00,000 | 2,00,000 |
| Bench drilling machines, 13 mm (× 4) | 1 | 1,68,000 | 1,68,000 |
| Hand fly presses No. 4 (× 4) | 1 | 1,60,000 | 1,60,000 |
| Metal-cutting circular saws, 250 mm (× 2) | 1 | 1,20,000 | 1,20,000 |
| Horizontal extrusion machine | 1 | 1,00,000 | 1,00,000 |
| Double-ended buffing machines (× 2) | 1 | 50,000 | 50,000 |
| Riveting machine | 1 | 40,000 | 40,000 |
| Arbor press, 500 kg | 1 | 20,000 | 20,000 |
| Hand tools, cutters, dies and precision instruments (× LS) | 1 | 2,00,000 | 2,00,000 |
| Total | 35,58,000 |
Pre-filled from: DC-MSME import-substitution DPR — Hinges, Hasps and Staples. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Stainless steel, mild steel and aluminium alloy sheet, bars, rods, wire and extruded sections for flaps, pins, hasps and staples — 2 tonnes a month, ₹3,00,000
- Chemicals for anodising — ₹30,000 a month
- Packing material and miscellaneous items — ₹20,000 a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 35.58 |
| Contingency | 1.78 |
| Total fixed capital | 37.36 |
| Working capital margin | 0.00 |
| Total project cost | 37.36 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 3.74 | 10.0 |
| Term loan from bank | 33.62 | 90.0 |
| Total | 37.36 | 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 | 0.75 | 0.75 | 0.75 | 0.75 | 0.75 | 0.75 | 0.75 |
| Insurance | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 |
| Total cost of operations | 3.81 | 3.81 | 3.81 | 3.81 | 3.81 | 3.81 | 3.81 |
| Operating profit (EBITDA) | -3.81 | -3.81 | -3.81 | -3.81 | -3.81 | -3.81 | -3.81 |
| Depreciation | 5.60 | 4.76 | 4.05 | 3.44 | 2.93 | 2.49 | 2.11 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 3.64 | 3.15 | 2.58 | 2.02 | 1.45 | 0.88 | 0.31 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -13.06 | -11.73 | -10.45 | -9.27 | -8.19 | -7.18 | -6.24 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -13.06 | -11.73 | -10.45 | -9.27 | -8.19 | -7.18 | -6.24 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -13.06 | -11.73 | -10.45 | -9.27 | -8.19 | -7.18 | -6.24 |
| Depreciation | 5.60 | 4.76 | 4.05 | 3.44 | 2.93 | 2.49 | 2.11 |
| Cash accruals (PAT + depreciation) | -7.45 | -6.97 | -6.40 | -5.83 | -5.26 | -4.69 | -4.12 |
| Term loan repaid | 2.59 | 5.17 | 5.17 | 5.17 | 5.17 | 5.17 | 5.17 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -10.04 | -12.14 | -11.57 | -11.00 | -10.43 | -9.86 | -9.29 |
| Cash and bank | -10.04 | -22.18 | -33.75 | -44.75 | -55.19 | -65.05 | -74.34 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 3.74 | 3.74 | 3.74 | 3.74 | 3.74 | 3.74 | 3.74 |
| Reserves and surplus | -13.06 | -24.79 | -35.23 | -44.51 | -52.69 | -59.87 | -66.10 |
| Term loan outstanding | 31.04 | 25.86 | 20.69 | 15.52 | 10.35 | 5.17 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 21.72 | 4.81 | -10.81 | -25.25 | -38.61 | -50.96 | -62.37 |
| Net fixed assets | 31.76 | 26.99 | 22.94 | 19.50 | 16.58 | 14.09 | 11.98 |
| 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 | -10.04 | -22.18 | -33.75 | -44.75 | -55.19 | -65.05 | -74.34 |
| Total assets | 21.72 | 4.81 | -10.81 | -25.25 | -38.61 | -50.96 | -62.37 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.61 | -0.46 | -0.49 | -0.53 | -0.58 | -0.63 | -0.70 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.57 |
|---|---|
| Lowest DSCR | -0.70 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 5.60 | 4.76 | 4.05 | 3.44 | 2.93 | 2.49 | 2.11 |
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 | 33.62 | 3.64 | 2.59 | 31.04 |
| 2 | 31.04 | 3.15 | 5.17 | 25.86 |
| 3 | 25.86 | 2.58 | 5.17 | 20.69 |
| 4 | 20.69 | 2.02 | 5.17 | 15.52 |
| 5 | 15.52 | 1.45 | 5.17 | 10.35 |
| 6 | 10.35 | 0.88 | 5.17 | 5.17 |
| 7 | 5.17 | 0.31 | 5.17 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Factory licence
- State Pollution Control Board consent (anodising and polishing)
- BIS licence where an ISI mark is wanted (IS 1341 steel butt hinges, IS 12817 stainless-steel butt hinges, IS 363 hasps and staples)
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- DC-MSME import-substitution DPR — Hinges, Hasps and Staples — https://dcmsme.gov.in/Revised%20report%20for%2038_Hinges,Hasps%20and%20staples%20by%20Viyayakumar.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.