Detailed Project Report
MS Tie Bars (for Moulding and Die-Casting Machines)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹41.20 L
- Term loan from bank
- ₹37.08 L
- Promoter’s contribution
- ₹4.12 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-11.22 L
- Average DSCR
- -0.53
- 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
Cut mild steel round bars, turn and thread them on CNC machines and grind them into tie bars that hold the platens of moulding and pressing machines.
| Main product or service | MS Tie Bars (for Moulding and Die-Casting Machines) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Injection moulding machine makers
- Die-casting, forging and press machine makers
- Plastic moulding units needing replacement tie bars
- Mould and die makers
- Direct orders against the machine maker's drawing
- Job work for larger machine shops
- Machine spares dealers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| CNC 3-axis milling machine, spindle speed 120–8,000 rpm | 1 | 12,00,000 | 12,00,000 |
| CNC lathe, 500 mm swing over bed | 1 | 13,50,000 | 13,50,000 |
| Surface grinder 8 x 15 inch | 1 | 3,50,000 | 3,50,000 |
| Power hacksaw | 1 | 30,000 | 30,000 |
| Bench drilling machine 25 mm, 1 HP | 1 | 1,50,000 | 1,50,000 |
| Double-ended bench grinder 200 mm, 2 HP | 1 | 5,500 | 5,500 |
| Slip gauge box | 1 | 80,000 | 80,000 |
| Micrometers, vernier scales, bore dial gauges, height gauges, bench vices | 1 | 58,000 | 58,000 |
| Tools and fixtures (× 1 set) | 1 | 1,00,000 | 1,00,000 |
| Generator set for power backup | 1 | 6,00,000 | 6,00,000 |
| Total | 39,23,500 |
Pre-filled from: DC-MSME import-substitution DPR — M.S. Tie Bars. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Mild steel round bars (IS 2062 / SAE 1018) — 5,700 kg a month at ₹60 a kg
- Cutting fluid, cotton waste and cleaning agents — ₹5,000 a month
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 39.24 |
| Contingency | 1.96 |
| Total fixed capital | 41.20 |
| Working capital margin | 0.00 |
| Total project cost | 41.20 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 4.12 | 10.0 |
| Term loan from bank | 37.08 | 90.0 |
| Total | 41.20 | 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 | 0.82 | 0.82 | 0.82 | 0.82 | 0.82 | 0.82 | 0.82 |
| Insurance | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 |
| Total cost of operations | 3.91 | 3.91 | 3.91 | 3.91 | 3.91 | 3.91 | 3.91 |
| Operating profit (EBITDA) | -3.91 | -3.91 | -3.91 | -3.91 | -3.91 | -3.91 | -3.91 |
| Depreciation | 6.18 | 5.25 | 4.46 | 3.79 | 3.23 | 2.74 | 2.33 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 4.01 | 3.48 | 2.85 | 2.22 | 1.59 | 0.97 | 0.34 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -14.10 | -12.64 | -11.22 | -9.93 | -8.73 | -7.62 | -6.58 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -14.10 | -12.64 | -11.22 | -9.93 | -8.73 | -7.62 | -6.58 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -14.10 | -12.64 | -11.22 | -9.93 | -8.73 | -7.62 | -6.58 |
| Depreciation | 6.18 | 5.25 | 4.46 | 3.79 | 3.23 | 2.74 | 2.33 |
| Cash accruals (PAT + depreciation) | -7.92 | -7.39 | -6.76 | -6.13 | -5.50 | -4.88 | -4.25 |
| Term loan repaid | 2.85 | 5.70 | 5.70 | 5.70 | 5.70 | 5.70 | 5.70 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -10.78 | -13.09 | -12.46 | -11.84 | -11.21 | -10.58 | -9.95 |
| Cash and bank | -10.78 | -23.87 | -36.33 | -48.17 | -59.38 | -69.96 | -79.91 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 4.12 | 4.12 | 4.12 | 4.12 | 4.12 | 4.12 | 4.12 |
| Reserves and surplus | -14.10 | -26.74 | -37.97 | -47.89 | -56.62 | -64.24 | -70.82 |
| Term loan outstanding | 34.22 | 28.52 | 22.82 | 17.11 | 11.41 | 5.70 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 24.24 | 5.90 | -11.03 | -26.66 | -41.10 | -54.42 | -66.70 |
| Net fixed assets | 35.02 | 29.76 | 25.30 | 21.50 | 18.28 | 15.54 | 13.21 |
| 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 | -10.78 | -23.87 | -36.33 | -48.17 | -59.38 | -69.96 | -79.91 |
| Total assets | 24.24 | 5.90 | -11.03 | -26.66 | -41.10 | -54.42 | -66.70 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -0.57 | -0.43 | -0.46 | -0.49 | -0.54 | -0.59 | -0.65 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -0.53 |
|---|---|
| Lowest DSCR | -0.65 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 6.18 | 5.25 | 4.46 | 3.79 | 3.23 | 2.74 | 2.33 |
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 | 37.08 | 4.01 | 2.85 | 34.22 |
| 2 | 34.22 | 3.48 | 5.70 | 28.52 |
| 3 | 28.52 | 2.85 | 5.70 | 22.82 |
| 4 | 22.82 | 2.22 | 5.70 | 17.11 |
| 5 | 17.11 | 1.59 | 5.70 | 11.41 |
| 6 | 11.41 | 0.97 | 5.70 | 5.70 |
| 7 | 5.70 | 0.34 | 5.70 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Factory licence where the worker count and power use require it
- State Pollution Control Board consent (machine shop)
- Trade licence from the local body
18 Government schemes that may apply
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- DC-MSME import-substitution DPR — M.S. Tie Bars — https://dcmsme.gov.in/22_MS_Tie_Bars%20by%20Devaraj-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.