Detailed Project Report
Mobile App / Software Development Studio
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹3.89 L
- Term loan from bank
- ₹2.53 L
- Promoter’s contribution
- ₹0.39 L
- Subsidy
- ₹0.97 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.59 L
- Average DSCR
- -5.93
- 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
Build apps and software for local businesses — a small team, big work.
| Main product or service | Mobile App / Software Development Studio |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Small, medium and large businesses that want custom apps
- Custom app projects priced per app
- Marketing staff for client outreach
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Computers with hardware, Windows and MS Office (× 4) | 1 | 1,20,000 | 1,20,000 |
| Vehicles (× 4) | 1 | 1,80,000 | 1,80,000 |
| Network installation devices | 1 | 10,000 | 10,000 |
| Furniture, fixtures and office equipment | 1 | 60,000 | 60,000 |
| Total | 3,70,000 |
Pre-filled from: UP MSME 1-Connect (Govt of UP, RAMP) – Project Report: Mobile App Development; ESC – Electronics and Computer Software Export Promotion Council (sponsored by the Government of India). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Software, licences, network and bulk hosting — ₹2,00,000 a year (lump sum) in the report
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 3.70 |
| Contingency | 0.19 |
| Total fixed capital | 3.89 |
| Working capital margin | 0.00 |
| Total project cost | 3.89 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.39 | 10.0 |
| Subsidy | 0.97 | 25.0 |
| Term loan from bank | 2.53 | 65.0 |
| Total | 3.89 | 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 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 |
| Insurance | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Total cost of operations | 2.98 | 2.98 | 2.98 | 2.98 | 2.98 | 2.98 | 2.98 |
| Operating profit (EBITDA) | -2.98 | -2.98 | -2.98 | -2.98 | -2.98 | -2.98 | -2.98 |
| Depreciation | 0.58 | 0.50 | 0.42 | 0.36 | 0.30 | 0.26 | 0.22 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.27 | 0.24 | 0.19 | 0.15 | 0.11 | 0.07 | 0.02 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.83 | -3.71 | -3.59 | -3.49 | -3.39 | -3.30 | -3.22 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.83 | -3.71 | -3.59 | -3.49 | -3.39 | -3.30 | -3.22 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.83 | -3.71 | -3.59 | -3.49 | -3.39 | -3.30 | -3.22 |
| Depreciation | 0.58 | 0.50 | 0.42 | 0.36 | 0.30 | 0.26 | 0.22 |
| Cash accruals (PAT + depreciation) | -3.25 | -3.21 | -3.17 | -3.13 | -3.09 | -3.04 | -3.00 |
| Term loan repaid | 0.19 | 0.39 | 0.39 | 0.39 | 0.39 | 0.39 | 0.39 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.44 | -3.60 | -3.56 | -3.52 | -3.47 | -3.43 | -3.39 |
| Cash and bank | -3.44 | -7.05 | -10.61 | -14.12 | -17.60 | -21.03 | -24.42 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.36 | 1.36 | 1.36 | 1.36 | 1.36 | 1.36 | 1.36 |
| Reserves and surplus | -3.83 | -7.54 | -11.13 | -14.62 | -18.01 | -21.31 | -24.53 |
| Term loan outstanding | 2.33 | 1.94 | 1.55 | 1.17 | 0.78 | 0.39 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -0.14 | -4.24 | -8.22 | -12.10 | -15.87 | -19.56 | -23.17 |
| Net fixed assets | 3.30 | 2.81 | 2.39 | 2.03 | 1.72 | 1.47 | 1.25 |
| 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 | -3.44 | -7.05 | -10.61 | -14.12 | -17.60 | -21.03 | -24.42 |
| Total assets | -0.14 | -4.24 | -8.22 | -12.10 | -15.87 | -19.56 | -23.17 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -6.37 | -4.76 | -5.11 | -5.51 | -5.99 | -6.55 | -7.23 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -5.93 |
|---|---|
| Lowest DSCR | -7.23 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.58 | 0.50 | 0.42 | 0.36 | 0.30 | 0.26 | 0.22 |
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 | 2.53 | 0.27 | 0.19 | 2.33 |
| 2 | 2.33 | 0.24 | 0.39 | 1.94 |
| 3 | 1.94 | 0.19 | 0.39 | 1.55 |
| 4 | 1.55 | 0.15 | 0.39 | 1.17 |
| 5 | 1.17 | 0.11 | 0.39 | 0.78 |
| 6 | 0.78 | 0.07 | 0.39 | 0.39 |
| 7 | 0.39 | 0.02 | 0.39 | 0.00 |
17 Licences and registrations
- GST
- Udyam
- Shop & Establishment
- Software/IP contracts with clients
18 Government schemes that may apply
- Mukhyamantri Yuva Udyami Vikas Abhiyan (CM-YUVA)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- UP MSME 1-Connect (Govt of UP, RAMP) – Project Report: Mobile App Development — https://msme1connect.up.gov.in/Projectreport/Project%20Report638665741831645197.pdf
- ESC – Electronics and Computer Software Export Promotion Council (sponsored by the Government of India) — https://www.escindia.in/
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.