Detailed Project Report
Neon Sign Board Making
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹2.28 L
- Term loan from bank
- ₹1.48 L
- Promoter’s contribution
- ₹0.23 L
- Subsidy
- ₹0.57 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.30 L
- Average DSCR
- -9.98
- 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
Bend glass tubes, fill them with gas and build glowing shop and hoarding signs.
| Main product or service | Neon Sign Board Making |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Shops, showrooms, hotels and restaurants
- Industrial and commercial firms advertising their products
- Advertising agencies
- Direct orders from businesses
- Sub-contract work from advertising and flex-printing agencies
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Bombarding transformer 7.5 kVA, 230/25,000 V | 1 | 0 | 0 |
| Agency transformer 15,000 V, 60 mA | 1 | 0 | 0 |
| Vacuum pump (1 micron) | 1 | 0 | 0 |
| Gas filling unit | 1 | 0 | 0 |
| Gas plant | 1 | 0 | 0 |
| High-frequency vacuum tester | 1 | 0 | 0 |
| Tipping torches, splicing torches, ribbon burners (× 1 set) | 1 | 0 | 0 |
| Hand shearing machine | 1 | 0 | 0 |
| Hand-operated sheet machine | 1 | 0 | 0 |
| Arc welding transformer 12 kVA | 1 | 0 | 0 |
| Spot welding machine 2 kVA | 1 | 0 | 0 |
| Bench drilling machine 13 mm and bench grinder (× 1 each) | 1 | 0 | 0 |
| All equipment above, with installation and pre-operative costs (× 1 set) | 1 | 2,17,000 | 2,17,000 |
| Total | 2,17,000 |
Pre-filled from: KVIC Project Profile — Neon Sign Boards (PMEGP); World Customs Organization – HS Nomenclature 2022, Chapter 94. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Glass tubes (plain or coated with fluorescent powder) — colour comes from the gas or the coating; raw material ₹5.70 lakh a year in the profile
- Neon and other filling gases — filled after vacuum pumping
- Electrodes, high-voltage transformers and wire — each sign needs its own transformer
- Metal sheet and sections for frames — cut and welded in the unit
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 2.17 |
| Contingency | 0.11 |
| Total fixed capital | 2.28 |
| Working capital margin | 0.00 |
| Total project cost | 2.28 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.23 | 10.0 |
| Subsidy | 0.57 | 25.0 |
| Term loan from bank | 1.48 | 65.0 |
| Total | 2.28 | 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 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 |
| Insurance | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Total cost of operations | 2.94 | 2.94 | 2.94 | 2.94 | 2.94 | 2.94 | 2.94 |
| Operating profit (EBITDA) | -2.94 | -2.94 | -2.94 | -2.94 | -2.94 | -2.94 | -2.94 |
| Depreciation | 0.34 | 0.29 | 0.25 | 0.21 | 0.18 | 0.15 | 0.13 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.16 | 0.14 | 0.11 | 0.09 | 0.06 | 0.04 | 0.01 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.44 | -3.37 | -3.30 | -3.24 | -3.18 | -3.13 | -3.08 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.44 | -3.37 | -3.30 | -3.24 | -3.18 | -3.13 | -3.08 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.44 | -3.37 | -3.30 | -3.24 | -3.18 | -3.13 | -3.08 |
| Depreciation | 0.34 | 0.29 | 0.25 | 0.21 | 0.18 | 0.15 | 0.13 |
| Cash accruals (PAT + depreciation) | -3.10 | -3.08 | -3.05 | -3.03 | -3.00 | -2.98 | -2.95 |
| Term loan repaid | 0.11 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.21 | -3.30 | -3.28 | -3.25 | -3.23 | -3.20 | -3.18 |
| Cash and bank | -3.21 | -6.51 | -9.79 | -13.05 | -16.28 | -19.48 | -22.66 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.80 | 0.80 | 0.80 | 0.80 | 0.80 | 0.80 | 0.80 |
| Reserves and surplus | -3.44 | -6.81 | -10.10 | -13.34 | -16.52 | -19.65 | -22.72 |
| Term loan outstanding | 1.37 | 1.14 | 0.91 | 0.68 | 0.46 | 0.23 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -1.27 | -4.87 | -8.39 | -11.86 | -15.26 | -18.62 | -21.93 |
| Net fixed assets | 1.94 | 1.65 | 1.40 | 1.19 | 1.01 | 0.86 | 0.73 |
| 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 | -3.21 | -6.51 | -9.79 | -13.05 | -16.28 | -19.48 | -22.66 |
| Total assets | -1.27 | -4.87 | -8.39 | -11.86 | -15.26 | -18.62 | -21.93 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -10.71 | -8.01 | -8.60 | -9.28 | -10.07 | -11.02 | -12.17 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -9.98 |
|---|---|
| Lowest DSCR | -12.17 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.34 | 0.29 | 0.25 | 0.21 | 0.18 | 0.15 | 0.13 |
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 | 1.48 | 0.16 | 0.11 | 1.37 |
| 2 | 1.37 | 0.14 | 0.23 | 1.14 |
| 3 | 1.14 | 0.11 | 0.23 | 0.91 |
| 4 | 0.91 | 0.09 | 0.23 | 0.68 |
| 5 | 0.68 | 0.06 | 0.23 | 0.46 |
| 6 | 0.46 | 0.04 | 0.23 | 0.23 |
| 7 | 0.23 | 0.01 | 0.23 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Trade licence from the local body
- Client needs municipal permission for outdoor signs
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)
19 Sources
- KVIC Project Profile — Neon Sign Boards (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/NEON_SIGN_BOARDS_%28_RURAL_ENGG._AND_BIO-TECH_INDUSTRY_%29.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
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.