Detailed Project Report
Window Air Conditioner Assembly
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹1.89 L
- Term loan from bank
- ₹1.23 L
- Promoter’s contribution
- ₹0.19 L
- Subsidy
- ₹0.47 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.23 L
- Average DSCR
- -11.99
- 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
Assembling 1.5 tonne window air conditioners from bought-out compressors, coils, motors and a sheet-metal cabinet made in-house.
| Main product or service | Window Air Conditioner Assembly |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Offices, shops and showrooms
- Households
- Hotels, laboratories and computer rooms
- Appliance dealers
- Direct sale with installation and service
- Local appliance dealers
- Supply to institutions against orders
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Sheet bending machine | 1 | 12,000 | 12,000 |
| Sheet cutting machine | 1 | 15,000 | 15,000 |
| Hand press | 1 | 10,000 | 10,000 |
| Portable grinder, ½ HP | 1 | 4,000 | 4,000 |
| Drilling machine, ½ HP | 1 | 7,000 | 7,000 |
| Riveting machine, ½ HP | 1 | 4,000 | 4,000 |
| Vacuum pump for charging, 1 HP | 1 | 15,000 | 15,000 |
| Pressure pump for testing, 1 HP | 1 | 14,000 | 14,000 |
| Charging panel (× 1 set) | 1 | 5,000 | 5,000 |
| Acetylene and oxygen cylinders, torch and hose (× 2 sets) | 1 | 23,000 | 23,000 |
| Swaging, flaring and soldering tools and fixtures | 1 | 12,000 | 12,000 |
| Spot welding machine | 1 | 15,000 | 15,000 |
| Digital clamp meter | 1 | 3,000 | 3,000 |
| Spray gun and compressor (× 1 set) | 1 | 12,000 | 12,000 |
| Working table, chairs and office equipment | 1 | 15,000 | 15,000 |
| Electrification and installation | 1 | 14,000 | 14,000 |
| Total | 1,80,000 |
Pre-filled from: DC-MSME project profile — Air Conditioner Window Type. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Compressor, 1.5 tonne — 100 a month at ₹8,000 each (2003)
- Galvanised (G.I.) sheet for cabinets — ₹1,000 a unit
- Fan motor — ₹1,000 each
- Blower — ₹1,700 each
- Condenser fan — ₹300 each
- Starting capacitor and 36 MFD running capacitor — ₹250 and ₹320 each
- Wires, relay, knob and switch set — ₹1,000 a set
- Capillary copper tubing — ₹800 a set
- Plastic grill — ₹300 a set
- Refrigerant gas — 200 kg a month at ₹250 per kg
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 1.80 |
| Contingency | 0.09 |
| Total fixed capital | 1.89 |
| Working capital margin | 0.00 |
| Total project cost | 1.89 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.19 | 10.0 |
| Subsidy | 0.47 | 25.0 |
| Term loan from bank | 1.23 | 65.0 |
| Total | 1.89 | 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 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 |
| Insurance | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Total cost of operations | 2.93 | 2.93 | 2.93 | 2.93 | 2.93 | 2.93 | 2.93 |
| Operating profit (EBITDA) | -2.93 | -2.93 | -2.93 | -2.93 | -2.93 | -2.93 | -2.93 |
| Depreciation | 0.28 | 0.24 | 0.20 | 0.17 | 0.15 | 0.13 | 0.11 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.13 | 0.12 | 0.09 | 0.07 | 0.05 | 0.03 | 0.01 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.34 | -3.28 | -3.23 | -3.17 | -3.13 | -3.09 | -3.05 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.34 | -3.28 | -3.23 | -3.17 | -3.13 | -3.09 | -3.05 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.34 | -3.28 | -3.23 | -3.17 | -3.13 | -3.09 | -3.05 |
| Depreciation | 0.28 | 0.24 | 0.20 | 0.17 | 0.15 | 0.13 | 0.11 |
| Cash accruals (PAT + depreciation) | -3.06 | -3.04 | -3.02 | -3.00 | -2.98 | -2.96 | -2.94 |
| Term loan repaid | 0.09 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.15 | -3.23 | -3.21 | -3.19 | -3.17 | -3.15 | -3.13 |
| Cash and bank | -3.15 | -6.39 | -9.60 | -12.79 | -15.96 | -19.10 | -22.23 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.66 | 0.66 | 0.66 | 0.66 | 0.66 | 0.66 | 0.66 |
| Reserves and surplus | -3.34 | -6.63 | -9.85 | -13.03 | -16.16 | -19.24 | -22.29 |
| Term loan outstanding | 1.13 | 0.95 | 0.76 | 0.57 | 0.38 | 0.19 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -1.55 | -5.02 | -8.44 | -11.80 | -15.12 | -18.39 | -21.63 |
| Net fixed assets | 1.61 | 1.37 | 1.16 | 0.99 | 0.84 | 0.71 | 0.61 |
| 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 | -3.15 | -6.39 | -9.60 | -12.79 | -15.96 | -19.10 | -22.23 |
| Total assets | -1.55 | -5.02 | -8.44 | -11.80 | -15.12 | -18.39 | -21.63 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -12.87 | -9.62 | -10.33 | -11.15 | -12.10 | -13.24 | -14.62 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -11.99 |
|---|---|
| Lowest DSCR | -14.62 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.28 | 0.24 | 0.20 | 0.17 | 0.15 | 0.13 | 0.11 |
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 | 1.23 | 0.13 | 0.09 | 1.13 |
| 2 | 1.13 | 0.12 | 0.19 | 0.95 |
| 3 | 0.95 | 0.09 | 0.19 | 0.76 |
| 4 | 0.76 | 0.07 | 0.19 | 0.57 |
| 5 | 0.57 | 0.05 | 0.19 | 0.38 |
| 6 | 0.38 | 0.03 | 0.19 | 0.19 |
| 7 | 0.19 | 0.01 | 0.19 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Factory licence
- BIS certification where a Quality Control Order applies (the profile cites IS 1391)
- BEE star label for room air conditioners
- State Pollution Control Board consent where the state asks for it
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- DC-MSME project profile — Air Conditioner Window Type — https://www.dcmsme.gov.in/publications/pmryprof/mechanical/ch8.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.