Detailed Project Report
Stainless Steel Cutlery Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹16.91 L
- Term loan from bank
- ₹10.99 L
- Promoter’s contribution
- ₹1.69 L
- Subsidy
- ₹4.23 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-5.98 L
- Average DSCR
- -1.51
- 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
Blank, form, polish and pack stainless steel spoons, forks and knives as sets.
| Main product or service | Stainless Steel Cutlery Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Utensil and crockery shops
- Hotels, restaurants and caterers
- Gift-set and corporate-gift sellers
- Utensil wholesalers
- Direct supply to HoReCa buyers
- Online marketplaces
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Blanking machine | 1 | 7,00,000 | 7,00,000 |
| Annealing furnace | 1 | 1,20,000 | 1,20,000 |
| Lathe machine | 1 | 1,80,000 | 1,80,000 |
| Edge trimming machine | 1 | 1,60,000 | 1,60,000 |
| Buffing and polishing machine | 1 | 1,50,000 | 1,50,000 |
| Embossing machine | 1 | 1,00,000 | 1,00,000 |
| Electroplating machine | 1 | 2,00,000 | 2,00,000 |
| Total | 16,10,000 |
Pre-filled from: PMEGP sample project report — Stainless Steel Cutlery (prepared by Udyami/Samadhan); World Customs Organization – HS Nomenclature 2022 edition. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Stainless steel sheet — main raw material
- Forming lubricants and polishing material
- Packing material
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 16.10 |
| Contingency | 0.81 |
| Total fixed capital | 16.91 |
| Working capital margin | 0.00 |
| Total project cost | 16.91 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 1.69 | 10.0 |
| Subsidy | 4.23 | 25.0 |
| Term loan from bank | 10.99 | 65.0 |
| Total | 16.91 | 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 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 |
| Insurance | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 |
| Total cost of operations | 3.30 | 3.30 | 3.30 | 3.30 | 3.30 | 3.30 | 3.30 |
| Operating profit (EBITDA) | -3.30 | -3.30 | -3.30 | -3.30 | -3.30 | -3.30 | -3.30 |
| Depreciation | 2.54 | 2.16 | 1.83 | 1.56 | 1.32 | 1.13 | 0.96 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.19 | 1.03 | 0.84 | 0.66 | 0.47 | 0.29 | 0.10 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -7.03 | -6.49 | -5.98 | -5.52 | -5.10 | -4.71 | -4.36 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -7.03 | -6.49 | -5.98 | -5.52 | -5.10 | -4.71 | -4.36 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -7.03 | -6.49 | -5.98 | -5.52 | -5.10 | -4.71 | -4.36 |
| Depreciation | 2.54 | 2.16 | 1.83 | 1.56 | 1.32 | 1.13 | 0.96 |
| Cash accruals (PAT + depreciation) | -4.49 | -4.33 | -4.15 | -3.96 | -3.78 | -3.59 | -3.40 |
| Term loan repaid | 0.85 | 1.69 | 1.69 | 1.69 | 1.69 | 1.69 | 1.69 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.34 | -6.02 | -5.84 | -5.65 | -5.47 | -5.28 | -5.09 |
| Cash and bank | -5.34 | -11.36 | -17.20 | -22.85 | -28.32 | -33.60 | -38.69 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 5.92 | 5.92 | 5.92 | 5.92 | 5.92 | 5.92 | 5.92 |
| Reserves and surplus | -7.03 | -13.52 | -19.50 | -25.01 | -30.11 | -34.83 | -39.19 |
| Term loan outstanding | 10.14 | 8.45 | 6.76 | 5.07 | 3.38 | 1.69 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 9.03 | 0.85 | -6.82 | -14.03 | -20.82 | -27.22 | -33.27 |
| Net fixed assets | 14.37 | 12.21 | 10.38 | 8.82 | 7.50 | 6.38 | 5.42 |
| 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 | -5.34 | -11.36 | -17.20 | -22.85 | -28.32 | -33.60 | -38.69 |
| Total assets | 9.03 | 0.85 | -6.82 | -14.03 | -20.82 | -27.22 | -33.27 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.62 | -1.21 | -1.30 | -1.41 | -1.53 | -1.67 | -1.84 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.51 |
|---|---|
| Lowest DSCR | -1.84 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 2.54 | 2.16 | 1.83 | 1.56 | 1.32 | 1.13 | 0.96 |
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 | 10.99 | 1.19 | 0.85 | 10.14 |
| 2 | 10.14 | 1.03 | 1.69 | 8.45 |
| 3 | 8.45 | 0.84 | 1.69 | 6.76 |
| 4 | 6.76 | 0.66 | 1.69 | 5.07 |
| 5 | 5.07 | 0.47 | 1.69 | 3.38 |
| 6 | 3.38 | 0.29 | 1.69 | 1.69 |
| 7 | 1.69 | 0.10 | 1.69 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- State Pollution Control Board consent (electroplating)
- Factory licence if worker numbers cross the limit
- Trade licence
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)
- Stand-Up India
19 Sources
- PMEGP sample project report — Stainless Steel Cutlery (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Stainless_Steel_Cutlery_%28_Samadhan_Projects_%29.pdf
- World Customs Organization – HS Nomenclature 2022 edition — https://www.wcoomd.org/en/topics/nomenclature/instrument-and-tools/hs-nomenclature-2022-edition/hs-nomenclature-2022-edition.aspx
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.