Detailed Project Report
MS Fabrication / Steel Furniture Unit
—
Prepared on: 26 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹3.69 L
- Term loan from bank
- ₹2.40 L
- Promoter’s contribution
- ₹0.37 L
- Subsidy
- ₹0.92 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.56 L
- Average DSCR
- -6.24
- 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
Gates, grills, almirahs, tables and chairs — made to order with a welding machine.
| Main product or service | MS Fabrication / Steel Furniture Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Owners and builders of new or remodelled houses and commercial buildings (gates, grills, railings, fences)
- Households, offices, shops, schools and libraries (almirahs, tables, chairs, racks)
- Industrial and commercial establishments
- Direct orders from building owners and contractors
- Furniture and hardware dealers
- Supply orders from offices and institutions
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Flat / wire rod twisting machine | 1 | 40,000 | 40,000 |
| Shearing machine (× 3) | 1 | 36,000 | 36,000 |
| Fly press | 1 | 20,000 | 20,000 |
| Manual press brake | 1 | 40,000 | 40,000 |
| Hand drills and tools | 1 | 20,000 | 20,000 |
| Pickling and surface treatment set-up | 1 | 75,000 | 75,000 |
| Sand blasting facility | 1 | 25,000 | 25,000 |
| Spray painting facility | 1 | 15,000 | 15,000 |
| Pipe bending machine | 1 | 10,000 | 10,000 |
| Welding machine (× 2) | 1 | 50,000 | 50,000 |
| Dies, tools and other equipment (× 1 lot) | 1 | 10,000 | 10,000 |
| Hand tools and gauges (× 1 lot) | 1 | 10,000 | 10,000 |
| Total | 3,51,000 |
Pre-filled from: UP MSME 1-Connect (Govt of UP, RAMP) – Project Report: Fabrication of Grills & Gates; ni-msme Hyderabad project profiles compiled on Bihar Udyami portal (Project_profiles.pdf). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Mild steel sections, flats, rods and pipes — for railings, fences, grills and gates – the main product line in the UP report
- Stainless steel square and round pipes — ₹210 per kg in the ni-msme steel-furniture profile
- Stainless steel sheets and strips — ₹150 per kg in the ni-msme profile
- Glass sheet — for table tops; ₹120 per sq ft in the ni-msme profile
- Welding electrodes, cutting blades, screws, cutting fluid, cotton waste — consumables, available in the local market
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 3.51 |
| Contingency | 0.18 |
| Total fixed capital | 3.69 |
| Working capital margin | 0.00 |
| Total project cost | 3.69 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.37 | 10.0 |
| Subsidy | 0.92 | 25.0 |
| Term loan from bank | 2.40 | 65.0 |
| Total | 3.69 | 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 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 |
| Insurance | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Total cost of operations | 2.97 | 2.97 | 2.97 | 2.97 | 2.97 | 2.97 | 2.97 |
| Operating profit (EBITDA) | -2.97 | -2.97 | -2.97 | -2.97 | -2.97 | -2.97 | -2.97 |
| Depreciation | 0.55 | 0.47 | 0.40 | 0.34 | 0.29 | 0.25 | 0.21 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.26 | 0.22 | 0.18 | 0.14 | 0.10 | 0.06 | 0.02 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.78 | -3.67 | -3.56 | -3.46 | -3.36 | -3.28 | -3.20 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.78 | -3.67 | -3.56 | -3.46 | -3.36 | -3.28 | -3.20 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.78 | -3.67 | -3.56 | -3.46 | -3.36 | -3.28 | -3.20 |
| Depreciation | 0.55 | 0.47 | 0.40 | 0.34 | 0.29 | 0.25 | 0.21 |
| Cash accruals (PAT + depreciation) | -3.23 | -3.20 | -3.16 | -3.12 | -3.08 | -3.03 | -2.99 |
| Term loan repaid | 0.18 | 0.37 | 0.37 | 0.37 | 0.37 | 0.37 | 0.37 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.42 | -3.57 | -3.52 | -3.48 | -3.44 | -3.40 | -3.36 |
| Cash and bank | -3.42 | -6.98 | -10.51 | -13.99 | -17.43 | -20.84 | -24.20 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.29 | 1.29 | 1.29 | 1.29 | 1.29 | 1.29 | 1.29 |
| Reserves and surplus | -3.78 | -7.45 | -11.01 | -14.46 | -17.83 | -21.11 | -24.31 |
| Term loan outstanding | 2.21 | 1.84 | 1.47 | 1.11 | 0.74 | 0.37 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -0.28 | -4.32 | -8.24 | -12.07 | -15.80 | -19.45 | -23.02 |
| Net fixed assets | 3.13 | 2.66 | 2.26 | 1.92 | 1.64 | 1.39 | 1.18 |
| 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 | -3.42 | -6.98 | -10.51 | -13.99 | -17.43 | -20.84 | -24.20 |
| Total assets | -0.28 | -4.32 | -8.24 | -12.07 | -15.80 | -19.45 | -23.02 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -6.70 | -5.01 | -5.38 | -5.80 | -6.30 | -6.90 | -7.61 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -6.24 |
|---|---|
| Lowest DSCR | -7.61 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.55 | 0.47 | 0.40 | 0.34 | 0.29 | 0.25 | 0.21 |
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 | 2.40 | 0.26 | 0.18 | 2.21 |
| 2 | 2.21 | 0.22 | 0.37 | 1.84 |
| 3 | 1.84 | 0.18 | 0.37 | 1.47 |
| 4 | 1.47 | 0.14 | 0.37 | 1.11 |
| 5 | 1.11 | 0.10 | 0.37 | 0.74 |
| 6 | 0.74 | 0.06 | 0.37 | 0.37 |
| 7 | 0.37 | 0.02 | 0.37 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST
- UPPCB consent (if you do painting/powder-coating or run a larger unit — check the category)
- Factory licence if 10+ workers with power
- Commercial/industrial electricity connection
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)
- Mukhyamantri Yuva Udyami Vikas Abhiyan (CM-YUVA)
- Stand-Up India
19 Sources
- UP MSME 1-Connect (Govt of UP, RAMP) – Project Report: Fabrication of Grills & Gates — https://msme1connect.up.gov.in/Projectreport/Project%20Report638665747150126666.pdf
- ni-msme Hyderabad project profiles compiled on Bihar Udyami portal (Project_profiles.pdf) — https://udyami.bihar.gov.in/pdf/Project_profiles.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 94 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/2094_2022e.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 73 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/1573_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.