Detailed Project Report
Insulation Tester (Megger) Assembly
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹5.72 L
- Term loan from bank
- ₹3.71 L
- Promoter’s contribution
- ₹0.57 L
- Subsidy
- ₹1.43 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.93 L
- Average DSCR
- -4.09
- 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
Assemble and calibrate battery-run electronic insulation testers that electricians use to check wiring, motors, cables and transformers.
| Main product or service | Insulation Tester (Megger) Assembly |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Electrical contractors and electricians
- Makers and repairers of motors, cables and transformers
- Power utilities and factory maintenance departments
- Electrical instrument dealers
- Electrical and instrument dealers
- Direct sales to contractors and industry through sales executives
- Tenders of utilities and government departments
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Wave soldering machine | 1 | 2,80,000 | 2,80,000 |
| Computers with printer (× 3) | 1 | 1,20,000 | 1,20,000 |
| Digital storage oscilloscope (100 MHz) | 1 | 48,000 | 48,000 |
| Soldering iron stations (× 4) | 1 | 28,000 | 28,000 |
| LCR meter | 1 | 24,000 | 24,000 |
| Regulated DC source | 1 | 20,000 | 20,000 |
| Digital multimeters (× 2) | 1 | 9,000 | 9,000 |
| Standard resistance box | 1 | 7,500 | 7,500 |
| De-soldering pumps (× 4) | 1 | 4,800 | 4,800 |
| Magnifying glass with light | 1 | 3,000 | 3,000 |
| Total | 5,44,300 |
Pre-filled from: DC-MSME import-substitution DPR — Insulation Tester (Transistorised). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Parts for the basic model including PCB and outer case — ₹4,000 a piece for 250 pieces a month = ₹10,00,000
- Resistors, capacitors, diodes, zener diodes, transistors and ICs — listed in the report; cost is inside the ₹4,000 a piece
- Transformer, battery, rotary switch, preset, case and analog meter display — listed in the report; cost is inside the ₹4,000 a piece
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 5.44 |
| Contingency | 0.27 |
| Total fixed capital | 5.72 |
| Working capital margin | 0.00 |
| Total project cost | 5.72 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.57 | 10.0 |
| Subsidy | 1.43 | 25.0 |
| Term loan from bank | 3.71 | 65.0 |
| Total | 5.72 | 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 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 |
| Insurance | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Total cost of operations | 3.02 | 3.02 | 3.02 | 3.02 | 3.02 | 3.02 | 3.02 |
| Operating profit (EBITDA) | -3.02 | -3.02 | -3.02 | -3.02 | -3.02 | -3.02 | -3.02 |
| Depreciation | 0.86 | 0.73 | 0.62 | 0.53 | 0.45 | 0.38 | 0.32 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.40 | 0.35 | 0.29 | 0.22 | 0.16 | 0.10 | 0.03 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.28 | -4.10 | -3.93 | -3.77 | -3.63 | -3.50 | -3.38 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.28 | -4.10 | -3.93 | -3.77 | -3.63 | -3.50 | -3.38 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.28 | -4.10 | -3.93 | -3.77 | -3.63 | -3.50 | -3.38 |
| Depreciation | 0.86 | 0.73 | 0.62 | 0.53 | 0.45 | 0.38 | 0.32 |
| Cash accruals (PAT + depreciation) | -3.42 | -3.37 | -3.31 | -3.25 | -3.18 | -3.12 | -3.06 |
| Term loan repaid | 0.29 | 0.57 | 0.57 | 0.57 | 0.57 | 0.57 | 0.57 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.71 | -3.94 | -3.88 | -3.82 | -3.75 | -3.69 | -3.63 |
| Cash and bank | -3.71 | -7.65 | -11.53 | -15.35 | -19.10 | -22.80 | -26.42 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.00 | 2.00 | 2.00 | 2.00 | 2.00 | 2.00 | 2.00 |
| Reserves and surplus | -4.28 | -8.38 | -12.31 | -16.08 | -19.71 | -23.21 | -26.59 |
| Term loan outstanding | 3.43 | 2.86 | 2.29 | 1.71 | 1.14 | 0.57 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 1.15 | -3.52 | -8.02 | -12.37 | -16.57 | -20.64 | -24.59 |
| Net fixed assets | 4.86 | 4.13 | 3.51 | 2.98 | 2.54 | 2.16 | 1.83 |
| 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 | -3.71 | -7.65 | -11.53 | -15.35 | -19.10 | -22.80 | -26.42 |
| Total assets | 1.15 | -3.52 | -8.02 | -12.37 | -16.57 | -20.64 | -24.59 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -4.39 | -3.29 | -3.53 | -3.81 | -4.13 | -4.52 | -4.99 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -4.09 |
|---|---|
| Lowest DSCR | -4.99 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.86 | 0.73 | 0.62 | 0.53 | 0.45 | 0.38 | 0.32 |
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 | 3.71 | 0.40 | 0.29 | 3.43 |
| 2 | 3.43 | 0.35 | 0.57 | 2.86 |
| 3 | 2.86 | 0.29 | 0.57 | 2.29 |
| 4 | 2.29 | 0.22 | 0.57 | 1.71 |
| 5 | 1.71 | 0.16 | 0.57 | 1.14 |
| 6 | 1.14 | 0.10 | 0.57 | 0.57 |
| 7 | 0.57 | 0.03 | 0.57 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Trade licence or shop and establishment registration
- Calibration certificates traceable to an accredited laboratory
- BIS certification to IS 10656 where the buyer asks for it
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 import-substitution DPR — Insulation Tester (Transistorised) — https://dcmsme.gov.in/35_Insulation%20Tester%20by%20Sunil%20Newar-converted.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.