Project Report Maker (Bank Loan)
Project report for dairy farm loan
Milk yield, feed and fodder cost, veterinary and labour costs, and dry-period effects in the projections for a dairy unit loan. Animal costs are taken from your quotations, never assumed.
First result free. per result, 4 revisions included.
Projections are estimates based on your inputs and stated assumptions. Scheme limits and subsidy rates are from public government and bank sources and can change; confirm with your bank or pmegp.msme.gov.in. Loan approval is the bank's decision. Have a Chartered Accountant review the report if your bank requires certified projections.
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Check your EMI, year-wise DSCR, PMEGP subsidy and Mudra category before you apply. Then let Loanlekha turn the numbers into a full report.
Interest is paid, no principal
After interest and depreciation
Roughly 15% of machinery cost
| Year | Interest (₹ lakh) | Principal (₹ lakh) | Balance (₹ lakh) | DSCR |
|---|---|---|---|---|
| 1 | 0.93 | 0.80 | 8.20 | 2.50 |
| 2 | 0.78 | 1.74 | 6.46 | 1.66 |
| 3 | 0.59 | 1.93 | 4.52 | 1.58 |
| 4 | 0.37 | 2.14 | 2.38 | 1.50 |
| 5 | 0.14 | 2.38 | 0.00 | 1.40 |
DSCR = (profit after tax + depreciation + interest) ÷ (interest + principal), using the same profit every year. Banks usually want an average of 1.25-1.5 or more. Low? Try a longer tenure or moratorium, more own money, or a smaller loan. The full report projects profit year by year.
Which loan scheme fits you?
| Scheme | Loan size | Who | Key terms |
|---|---|---|---|
| Mudra (PMMY) | Up to ₹10 lakh; Tarun Plus up to ₹20 lakh only after repaying a Tarun loan | Any non-farm micro business, new or existing | No collateral. Shishu ≤ ₹50k, Kishore ≤ ₹5L, Tarun ≤ ₹10L |
| PMEGP | Project cost up to ₹50 lakh (manufacturing) or ₹20 lakh (service) | New units; 18+; class VIII pass for larger projects | Subsidy 15-35% of project cost; own money 10% (5% special category) |
| CGTMSE term loan | Up to ₹10 crore guarantee cover | Micro and small enterprises | No collateral; the bank pays a guarantee fee, usually passed on |
| Stand-Up India | Above ₹10 lakh up to ₹1 crore | SC/ST and/or women, greenfield unit | Margin up to 15% (min 10% own); 7 years with up to 18 months moratorium |
From public government and bank sources. Limits change; confirm with your bank, mudra.org.in, pmegp.msme.gov.in or standupmitra.in.
Documents to carry with your project report
Everyone
- Aadhaar, PAN and photographs of all promoters
- Address proof of residence and business premises (rent agreement or ownership papers)
- Udyam registration (free at udyamregistration.gov.in)
- Quotations for machinery and equipment on supplier letterhead, with GST number
- Last 6-12 months bank statement
- Project report with projections (this report)
If applicable
- GST registration, FSSAI (food), trade / shop licence, pollution NOC for certain manufacturing
- ITRs and financial statements for the last 2-3 years (existing business)
- Caste or category certificate (PMEGP special category, Stand-Up India)
- EDP training certificate (PMEGP, before loan release)
- Partnership deed or company incorporation documents
Branches can ask for more. Your report ends with a checklist for your scheme.
See a real result
A real result from the example below, made with this tool. Shortened.
Input: Loan / scheme: Mudra loan (up to ₹20 lakh) · PMEGP category and area: General category, urban · Type of business: Food business (restaurant, cloud kitchen, bakery) · What will you make or sell?: Cloud kitchen for North Indian thalis and combos, delivery via Swiggy/Zomato and own Whats · Town and state: Vijay Nagar, Indore, Madhya Pradesh · Project cost and your own money (rough numbers are fine):
Project Report: Cloud Kitchen (North Indian Thalis & Combos)
1. Cover Block
| Item | Details |
|---|---|
| Report title | Detailed Project Report for a Cloud Kitchen, North Indian Thalis & Combos |
| Applicant | Rakesh Yadav (Proprietor) |
| Trade name | [Proposed business name] |
| Business | Delivery-only kitchen selling via Swiggy, Zomato and direct WhatsApp orders |
| Address | [Kitchen premises address], Vijay Nagar, Indore, Madhya Pradesh – [PIN] |
| Scheme | Pradhan Mantri Mudra Yojana (PMMY), Tarun category (₹5–10 lakh) |
| Loan applied for | ₹9.35 lakh (composite term loan) |
| Total project cost | ₹10.60 lakh |
| Own contribution | ₹1.25 lakh (11.8%) |
| Date | [DD-MM-YYYY] |
Note on loan amount: You asked for "about ₹9 lakh". A 5% contingency (₹0.35 lakh) has been added on fixed assets because no buffer was given. This makes the loan ₹9.35 lakh. If you want to keep the loan at ₹9.00 lakh, raise your own contribution to ₹1.60 lakh. The category stays Tarun either way.
2. Project at a Glance
| Particular | Value |
|---|---|
| Total project cost | ₹10.60 lakh |
| Own contribution (margin) | ₹1.25 lakh (11.8%) |
| Subsidy | Nil (Mudra has no subsidy) |
| Bank loan (Mudra Tarun) | ₹9.35 lakh |
| Interest rate (assumed) | 10.5% p.a. (confirm with bank) |
| Tenure | 60 months: 6 months moratorium (interest paid) + 54 EMIs |
| EMI | ≈ ₹21,800 per month |
| Collateral | None. Covered under Credit Guarantee Fund for Micro Units (CGFMU) |
| Employment generated | 6 (proprietor + 5 staff) |
| Year 2 sales | ₹55.30 lakh |
| Average DSCR (5 yrs) | 2.19 (Year 1: 0.41, see Section 15) |
| Break-even (accounting) | Year 1: 107.1% of projected sales; Year 3: 81.4% |
3. Promoter Profile
| Item | Details |
|---|---|
| Name | Rakesh Yadav |
| Age | 34 years |
| Form of business | Sole proprietorship |
| Experience | 7 years as Head Chef at a 3-star hotel in Indore ([hotel name], [years from–to]) |
| Education | [Highest qualification / hotel management diploma, if any] |
| Residential address | [Address] |
| PAN / Aadhaar | [PAN no.] / [Aadhaar no.] |
| Udyam Registration | [Udyam registration no.], to be obtained |
| Existing loans | [None / details] |
| Family support during start-up | [Spouse's income / savings available for household expenses] |
Relevance of experience:
- Seven years of running a hotel kitchen covers menu costing, bulk cooking and food safety.
- It also covers staff supervision and vendor handling.
- The North Indian thali menu (tandoor, curries, dal, rice, breads) matches a head chef's core skill set.
- The promoter will personally supervise production and quality.
4. Business Description
4.1 Product / Service
- Products: North Indian thalis (veg / non-veg, if planned [confirm]) and combos, for example:
- roti / naan with sabzi and dal
- rice bowls
- tandoori items
- Average order value: ₹190 (assumed exclusive of GST; see assumptions).
- Channels:
- About 70% through Swiggy and Zomato.
- About 30% through direct WhatsApp orders, with own delivery or third-party delivery [specify arrangement].
- Format: Delivery-only kitchen. No dine-in, so no seating, waiters or high-street rent.
4.2 Service Flow
- Daily purchase of vegetables, dairy and bread flour. Weekly purchase of dry grocery, spices and packaging.
- Pre-preparation in the morning: cutting, marination, gravies, dough.
- Order received on aggregator tablet or WhatsApp. Order ticket printed.
- Cooking and assembly at stations (tandoor, curry, rice).
- Packing in tamper-proof containers with an order sticker.
- Handover to aggregator rider or own delivery partner.
- Daily cash/UPI reconciliation. Weekly reconciliation of aggregator payouts.
- Closing: cleaning, waste disposal, stock check for the next day.
4.3 Capacity
- Steady-state capacity: 110 orders/day × 28 days/month = 3,080 orders/month.
- Operating hours: [e.g., 11 am–3 pm and 7 pm–11 pm].
- Staff: 5 in total.
- Typical split: 2 cooks/helpers, 1 tandoor cook, 1 packer, 1 kitchen cleaner/helper.
- Indicate actual roles: [roles].
4.4 Licences Required (to be obtained; not yet held)
| Licence / Registration | Remarks |
|---|---|
| Udyam Registration | Free, online at udyamregistration.gov.in |
| FSSAI | Projected turnover exceeds ₹12 lakh, so a State Licence is likely needed (confirm with FSSAI/Food Safety Officer, Indore) |
| GST registration | Generally required by Swiggy/Zomato for onboarding. Aggregators collect and pay 5% GST on restaurant orders under Sec 9(5); direct orders above threshold need your own GST (CA to confirm) |
| Shop & Establishment registration | Under MP Shops & Establishments Act / Indore Municipal Corporation |
| Trade / health licence | Indore Municipal Corporation, as applicable |
| Commercial LPG connection | Required for burners/tandoor |
| Fire NOC | If required for the premises/building |
| MP Pollution Control Board consent | Check applicability for tandoor/chimney exhaust |
| Swiggy/Zomato partner onboarding | Needs FSSAI, GST, PAN, bank account, menu |
5. Market Potential and Marketing Plan
5.1 Demand Drivers (qualitative)
- Vijay Nagar is a commercial and residential hub of Indore, with offices, coaching institutes, hostels and PG accommodation.
- This gives steady lunch and dinner delivery demand.
- Working professionals and students want affordable, filling meals. A thali at about ₹190 fits the "daily meal" segment rather than occasional indulgence.
- Food delivery app usage in Indore is high, and Vijay Nagar is usually well covered by aggregator riders.
- Repeat ordering is likely for home-style thalis. This supports building a direct WhatsApp customer base.
5.2 Target Customers
- Office staff in Vijay Nagar and nearby areas [list nearby localities/office complexes].
- Students and PG/hostel residents.
- Families ordering weekend dinners and small party orders.
- Bulk lunch orders for small offices: tiffin-style monthly subscriptions via WhatsApp.
5.3 Competition (generic)
- Other cloud kitchens and thali outlets on aggregator apps.
- Local tiffin services and mess.
- Dine-in restaurants also delivering.
Differentiation:
- Hotel-chef quality and consistent taste.
- Tandoor breads freshly made.
- Hygienic packaging.
- Value combos.
- A direct-order loyalty offer.
5.4 Pricing
- Average order value ₹190.
- Menu range: [e.g., ₹129–₹299].
- Direct WhatsApp prices can be slightly lower than app prices and still give a better margin, because no commission is paid.
5.5 Marketing Plan (budget ₹10,000/month)
- Aggregator ads and offers within the budget. Good photos and menu descriptions.
- Rating management: aim for 4+ stars from the first month.
- Leaflets with QR code and WhatsApp number inside every parcel.
- A WhatsApp Business catalogue, broadcast lists and daily menu status.
- Monthly lunch subscription offer for offices and PGs.
- Google Business Profile listing.
- Tie-ups with nearby PGs, hostels and coaching centres.
6. Cost of Project (₹ lakh)
| # | Item | Amount | Basis |
|---|---|---|---|
| 1 | Land & building | 0.00 | Rented premises |
| 2 | Rent deposit | 1.00 | As per rent agreement [to attach] |
| 3 | Commercial kitchen equipment (tandoor, burners, chimney, fridge, deep freezer) | 5.50 | As per quotation [supplier name, quotation no., date] |
| 4 | Interiors, exhaust & electrical | 1.50 | Quotation required [contractor name] |
| 5 | Pre-operative (FSSAI, GST, licences, onboarding) | 0.25 | Estimate |
| 6 | Contingency (5% of items 3+4) | 0.35 | Added as buffer |
| 7 | Margin for working capital / initial cash | 2.00 | Opening stock, packaging, first months' running costs |
| Total project cost | 10.60 |
Equipment of ₹5.50 lakh plus contingency of ₹0.35 lakh (₹5.85 lakh) is capitalised as plant & machinery. Interiors and electrical (₹1.50 lakh) are treated as furniture & fittings.
7. Means of Finance (₹ lakh)
| Source | Amount | % |
|---|---|---|
| Promoter's own contribution | 1.25 | 11.8% |
| Mudra loan, Tarun (term loan) | 9.35 | 88.2% |
| Subsidy | 0.00 | — |
| Total | 10.60 | 100% |
Notes:
- Category:
- The loan of ₹9.35 lakh falls in Tarun (₹5–10 lakh).
- Tarun Plus (above ₹10 lakh) is not applicable here. It is available only to those who have availed and repaid an earlier Tarun loan.
- Collateral: No collateral is required under Mudra. The loan is covered by CGFMU. Banks may pass on the annual guarantee fee; confirm with your bank.
- Structure:
- Modelled as a single term loan.
- Some banks give the working-capital part (₹2.00 lakh) as a Mudra OD/CC instead. If so, interest on that part will be charged only on usage.
- Margin: 11.8% own contribution is within the 10–15% banks usually expect for Tarun (confirm with your bank).
8. Assumptions
| Item | Assumption |
|---|---|
| Working days | 28 days/month, 336 days/year |
| Steady-state orders | 110/day (stated by applicant) = 100% capacity |
| Capacity utilisation | Y1 65%, Y2 75%, Y3 85%, Y4 90%, Y5 90% (new unit, default ramp) |
| Average order value | ₹190 in Y1, +5% per year. Assumed exclusive of GST |
| Channel mix | 70% aggregator / 30% direct (all years) |
| Aggregator commission | 25% (incl. GST on commission) on aggregator sales = 17.5% of total sales |
| Raw material | 36% of sales (as given) |
| Packaging | 6% of sales (as given) |
| Total variable cost | 59.5% of sales. Food inflation assumed passed on through prices |
| Rent | ₹30,000/month; +5% per year |
| Salaries | 5 staff, ₹85,000/month; +8% per year |
| Gas & electricity | ₹18,000/month; +6% per year (treated as fixed) |
| Marketing | ₹10,000/month; +5% per year |
| Other overheads (repairs, internet, accounting, renewals, insurance) | ₹5,000/month (added; not in user input); +6% per year |
| Interest | 10.5% p.a. on term loan; no CC modelled |
| Tenure | 60 months incl. 6 months moratorium (interest serviced) |
| Depreciation (WDV) | Plant & machinery 15%; furniture/fittings 10% |
| Pre-operative | ₹0.25 lakh written off over 5 years |
| Stock | 7 days of raw material + packaging |
| Debtors (aggregator payout lag) | 7 days of aggregator net receipts (52.5% of sales) |
| Creditors | 7 days of raw material + packaging |
| Income tax | Nil in all years. Profit below ₹12 lakh, so new-regime rebate u/s 87A assumed, with no other income. CA to confirm |
| Drawings | Y1 nil; Y2 ₹5,000/month; Y3 ₹15,000/month; Y4 ₹20,000/month; Y5 ₹25,000/month |
| CGFMU fee | Not included. Add if bank passes it on (confirm) |
9. Projected Sales / Capacity Utilisation
| Particular | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|
| Capacity utilisation | 65% | 75% | 85% | 90% | 90% |
| Orders per day | 71.5 | 82.5 | 93.5 | 99.0 | 99.0 |
| Orders per year | 24,024 | 27,720 | 31,416 | 33,264 | 33,264 |
| Average order value (₹) | 190.00 | 199.50 | 209.48 | 219.95 | 230.95 |
| Sales (₹ lakh) | 45.65 | 55.30 | 65.81 | 73.16 | 76.82 |
| Of which aggregator (70%) | 31.96 | 38.71 | 46.07 | 51.21 | 53.77 |
| Of which direct (30%) | 13.70 | 16.59 | 19.74 | 21.95 | 23.05 |
10. Projected Profit & Loss (₹ lakh)
| Particular | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|
| Sales | 45.65 | 55.30 | 65.81 | 73.16 | 76.82 |
| Raw material (36%) | 16.43 | 19.91 | 23.69 | 26.34 | 27.66 |
| Packaging (6%) | 2.74 | 3.32 | 3.95 | 4.39 | 4.61 |
| Aggregator commission (17.5%) | 7.99 | 9.68 | 11.52 | 12.80 | 13.44 |
| Total variable cost | 27.16 | 32.91 | 39.16 | 43.53 | 45.71 |
| Contribution | 18.49 | 22.39 | 26.65 | 29.63 | 31.11 |
| Salaries & wages | 10.20 | 11.02 | 11.90 | 12.85 | 13.88 |
| Rent | 3.60 | 3.78 | 3.97 | 4.17 | 4.38 |
| Gas & electricity | 2.16 | 2.29 | 2.43 | 2.57 | 2.73 |
| Marketing | 1.20 | 1.26 | 1.32 | 1.39 | 1.46 |
| Other overheads | 0.60 | 0.64 | 0.67 | 0.71 | 0.76 |
| Total cash fixed cost | 17.76 | 18.99 | 20.29 | 21.69 | 23.21 |
| EBITDA | 0.73 | 3.40 | 6.36 | 7.94 | 7.90* |
| Interest on term loan | 0.96 | 0.81 | 0.61 | 0.39 | 0.14 |
| Interest on CC | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Depreciation + pre-op write-off | 1.08 | 0.94 | 0.80 | 0.70 | 0.61 |
| PBT | (1.31) | 1.65 | 4.95 | 6.85 | 9.15 |
| Income tax (CA to confirm) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| PAT | (1.31) | 1.65 | 4.95 | 6.85 | 9.15 |
*Y5 EBITDA = 31.11 − 23.21 = 7.90; PBT = 7.90 − 0.14 − 0.61 = 7.15.
Correction to Y5: Recomputing Y5 gives PBT 7.15, not 9.15. The tables below use the corrected Y5 PAT of ₹7.15 lakh.
Corrected P&L Summary Lines (₹ lakh)
| Particular | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|
| EBITDA | 0.73 | 3.40 | 6.36 | 7.94 | 7.90 |
| PBT / PAT | (1.31) | 1.65 | 4.95 | 6.85 | 7.15 |
| Net profit margin | (2.87%) | 2.98% | 7.52% | 9.36% | 9.31% |
11. Projected Cash Flow (₹ lakh)
| Particular | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|
| Sources | |||||
| Own capital introduced | 1.25 | — | — | — | — |
| Mudra term loan | 9.35 | — | — | — | — |
| PAT | (1.31) | 1.65 | 4.95 | 6.85 | 7.15 |
| Depreciation + write-off | 1.08 | 0.94 | 0.80 | 0.70 | 0.61 |
| Increase in creditors | 0.40 | 0.08 | 0.10 | 0.06 | 0.03 |
| Total sources | 10.77 | 2.67 | 5.85 | 7.61 | 7.79 |
| Uses | |||||
| Fixed assets (P&M 5.85 + F&F 1.50) | 7.35 | — | — | — | — |
| Rent deposit | 1.00 | — | — | — | — |
| Pre-operative expenses | 0.25 | — | — | — | — |
| Increase in stock | 0.40 | 0.08 | 0.10 | 0.06 | 0.03 |
| Increase in debtors | 0.50 | 0.10 | 0.12 | 0.08 | 0.04 |
| Term loan principal repaid | 0.84 | 1.80 | 2.01 | 2.23 | 2.47 |
| Drawings | 0.00 | 0.60 | 1.80 | 2.40 | 3.00 |
| Total uses | 10.34 | 2.58 | 4.03 | 4.77 | 5.54 |
| Net cash flow | 0.43 | 0.09 | 1.82 | 2.84 | 2.25 |
| Opening cash | 0.00 | 0.43 | 0.52 | 2.34 | 5.18 |
| Closing cash | 0.43 | 0.52 | 2.34 | 5.18 | 7.43 |
12. Projected Balance Sheet (₹ lakh, as at year end)
| Particular | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|
| Liabilities | |||||
| Proprietor's capital | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 |
| Retained profit (cumulative PAT − drawings − tax) | (1.31) | (0.26) | 2.89 | 7.34 | 11.49 |
| Net worth (TNW) | (0.06) | 0.99 | 4.14 | 8.59 | 12.74 |
| Mudra term loan outstanding | 8.51 | 6.71 | 4.70 | 2.47 | 0.00 |
| Cash credit | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Sundry creditors | 0.40 | 0.48 | 0.58 | 0.64 | 0.67 |
| Total liabilities | 8.85 | 8.18 | 9.42 | 11.70 | 13.41 |
| Assets | |||||
| Net fixed assets | 6.32 | 5.43 | 4.68 | 4.03 | 3.47 |
| Pre-operative (unamortised) | 0.20 | 0.15 | 0.10 | 0.05 | 0.00 |
| Rent deposit | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
| Stock | 0.40 | 0.48 | 0.58 | 0.64 | 0.67 |
| Debtors (aggregator receivable) | 0.50 | 0.60 | 0.72 | 0.80 | 0.84 |
| Cash & bank | 0.43 | 0.52 | 2.34 | 5.18 | 7.43 |
| Total assets | 8.85 | 8.18 | 9.42 | 11.70 | 13.41 |
The balance sheet balances in every year.
13. Depreciation Schedule (WDV, ₹ lakh)
| Block (rate) | Particular | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|---|
| Plant & machinery (15%) | Opening WDV | 5.85 | 4.97 | 4.22 | 3.59 | 3.05 |
| Depreciation | 0.88 | 0.75 | 0.63 | 0.54 | 0.46 | |
| Closing WDV | 4.97 | 4.22 | 3.59 | 3.05 | 2.59 | |
| Furniture & fittings (10%) | Opening WDV | 1.50 | 1.35 | 1.21 | 1.09 | 0.98 |
| Depreciation | 0.15 | 0.14 | 0.12 | 0.11 | 0.10 | |
| Closing WDV | 1.35 | 1.21 | 1.09 | 0.98 | 0.88 | |
| Pre-operative (5 yrs) | Write-off | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 |
| Total charge | 1.08 | 0.94 | 0.80 | 0.70 | 0.61 | |
| Net fixed assets | 6.32 | 5.43 | 4.68 | 4.03 | 3.47 |
14. Term Loan Repayment Schedule (₹ lakh)
Loan terms: ₹9.35 lakh at 10.5% p.a.; 6 months moratorium with interest serviced; then 54 EMIs of about ₹21,800.
| Year | Opening | Interest | Principal | Total paid | Closing |
|---|---|---|---|---|---|
| Y1 (6 m interest only + 6 EMIs) | 9.35 | 0.96 | 0.84 | 1.80 | 8.51 |
| Y2 | 8.51 | 0.81 | 1.80 | 2.61 | 6.71 |
| Y3 | 6.71 | 0.61 | 2.01 | 2.62 | 4.70 |
| Y4 | 4.70 | 0.39 | 2.23 | 2.62 | 2.47 |
| Y5 | 2.47 | 0.14 | 2.47 | 2.61 | 0.00 |
| Total | 2.91 | 9.35 | 12.26 |
The figures come from a monthly reducing balance. Minor rounding differences are adjusted in principal so that closing balances tie.
15. Ratios
15.1 DSCR
DSCR = (PAT + Depreciation + TL interest) / (TL interest + Principal)
| Year | PAT | Dep. | Interest | Principal | Cash available | Debt service | DSCR |
|---|---|---|---|---|---|---|---|
| Y1 | (1.31) | 1.08 | 0.96 | 0.84 | 0.73 | 1.80 | 0.41 |
| Y2 | 1.65 | 0.94 | 0.81 | 1.80 | 3.40 | 2.61 | 1.30 |
| Y3 | 4.95 | 0.80 | 0.61 | 2.01 | 6.36 | 2.62 | 2.43 |
| Y4 | 6.85 | 0.70 | 0.39 | 2.23 | 7.94 | 2.62 | 3.03 |
| Y5 | 7.15 | 0.61 | 0.14 | 2.47 | 7.90 | 2.61 | 3.03 |
| Average | 2.04 |
The average is corrected for the Y5 recomputation: (0.41 + 1.30 + 2.43 + 3.03 + 3.03) / 5 = 2.04. Use 2.04 in place of 2.19 in Section 2.
15.2 Other Ratios
| Ratio | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|
| Current ratio (CA ÷ creditors + next-year TL instalment) | 0.60 | 0.64 | 1.30 | 2.13 | 13.33 |
| TOL / TNW | n.m. (TNW negative) | 7.26 | 1.28 | 0.36 | 0.05 |
| Net profit margin | (2.87%) | 2.98% | 7.52% | 9.36% | 9.31% |
15.3 Break-Even
| Particular | Y1 | Y3 |
|---|---|---|
| Fixed cost (cash fixed + TL interest + depreciation) | 19.80 | 21.70 |
| Contribution | 18.49 | 26.65 |
| Accounting BEP (% of projected sales) | 107.1% | 81.4% |
| Cash BEP (excl. depreciation) | 101.2% | 78.4% |
| BEP sales value (₹ lakh) | 48.89 | 53.57 |
| BEP orders/day at that year's price | ≈ 76.6 (70% capacity) | ≈ 76.1 (69% capacity) |
Reading:
- The kitchen needs about 77 orders/day to break even in Year 1, against 71.5 projected.
- From Year 2 (82.5/day) onwards it is above break-even.
16. SWOT
Strengths
- Promoter has 7 years as head chef at a 3-star hotel in Indore, so product quality and kitchen control are strong.
- Delivery-only format means no dine-in rent or service staff.
- A thali/combo menu gives predictable food costing (36%) and quick packing.
- A 30% direct-order channel carries no commission.
Weaknesses
- 70% dependence on aggregators: 25% commission and platform terms set by them.
- Variable costs at 59.5% of sales leave a thin contribution margin (40.5%).
- A new brand has no ratings history on the apps at launch.
- The proprietor has no prior experience as a business owner (bookkeeping, GST, aggregator ads).
Opportunities
- Office, coaching and PG density in and around Vijay Nagar suits daily meal orders.
- Monthly lunch subscriptions for offices and PGs give assured volume.
- Bulk and party orders, and festival thalis.
- A second brand on the same kitchen (e.g., a tandoor-only or rice-bowl menu) can add orders without new rent.
Threats
- Many cloud kitchens and tiffin services compete in the same delivery radius.
- Aggregator commission hikes, discount-led competition, or delisting on poor ratings.
- Volatile prices of vegetables, dairy and commercial LPG.
- Food-safety complaints or poor ratings can cut order flow quickly.
- Staff attrition among cooks.
17. What the Bank Officer Will Check
- Year 1 DSCR is 0.41 and Year 1 shows a loss of ₹1.31 lakh. At 65% utilisation (71.5 orders/day), the kitchen is below its ~77 orders/day break-even. Cutting the loan does not solve this: at ₹8 lakh, debt service falls only by about ₹0.25 lakh. The problem is operating margin. Concrete fixes, with Year 1 effect:
- Keep 4 staff in Year 1 instead of 5 (saves about ₹2.04 lakh). Add the fifth when orders cross 85/day.
- Push direct orders to 40% through WhatsApp subscriptions and parcel leaflets. Aggregator share falls to 60%, saving 2.5% of sales (≈ ₹1.14 lakh).
- With both fixes, Y1 PAT ≈ +₹1.87 lakh and Y1 DSCR ≈ 2.17. Revise the projections with these changes before submission if you can commit to them.
- Alternatively, show evidence for Y1 volume of 77+ orders/day, such as letters of intent from offices or PGs, or a pre-launch WhatsApp list. Each +5 points of utilisation adds about ₹1.42 lakh of contribution; at 70% utilisation Y1 DSCR is about 1.19.
- No drawings in Year 1 and only ₹5,000/month in Year 2. The officer will ask how your household runs after you leave the hotel job. Be ready with proof of other family income or savings, such as [spouse's salary slip / FD statement].
- Net worth is negative at the end of Year 1 (−₹0.06 lakh), and current ratio is below 1 in Years 1–2. Both improve if fix 1 is applied. Adding ₹0.50 lakh more own capital would also keep net worth positive.
- Sales value and GST treatment.
- Confirm the ₹190 average is net of GST. On aggregator orders, the 5% GST is collected by the platform. If ₹190 includes GST, sales are overstated by about 4.8%.
- Also confirm that the 25% commission matches your actual Swiggy/Zomato agreement. Platforms also deduct payment and ad charges.
- Gas and electricity at ₹18,000/month is low for a tandoor plus burners at 100+ orders/day. Get one month's estimate from a commercial LPG supplier. If it is higher, the margin falls further.
- Quotations. Equipment (₹5.50 lakh) is quoted. Interiors, exhaust and electrical (₹1.50 lakh) need a written quotation. Banks usually pay suppliers directly against quotations.
- Premises.
- The rent agreement should be registered and should run at least as long as the loan tenure (5 years), or have a renewal clause.
- The kitchen should be in a zone where FSSAI licensing and commercial LPG are allowed.
- Ask the bank whether the CGFMU guarantee fee will be charged to you, and add it as an expense if so.
18. Documents to Attach (Mudra Tarun)
- Mudra loan application form (bank's format)
- KYC: PAN, Aadhaar, 2 passport photos
- Residence proof (electricity bill / rent agreement of residence)
- Udyam Registration certificate
- Equipment quotation (₹5.50 lakh) on the supplier's letterhead with GSTIN
- Interiors/exhaust/electrical quotation (₹1.50 lakh)
- Rent agreement for kitchen premises plus landlord's NOC and ownership proof
- FSSAI licence / application acknowledgement
- GST registration (or application)
- Shop & Establishment / trade licence (or application)
- Experience certificate from the hotel ([hotel name]) and last 6 months' salary slips
- Bank statement for the last 6–12 months (personal)
- ITR for the last 2–3 years (salaried ITR), if filed
- Proof of own contribution of ₹1.25 lakh (bank balance / FD)
- This project report with projections
- Declaration of no existing default and details of any existing loans
- Caste/category certificate, only if the bank offers a concession for it
19. Declaration
I, Rakesh Yadav, proprietor of [business name], declare that the information in this project report is true to the best of my knowledge. The projections are based on my estimates and assumptions stated above.
Signature: ____________________ Place: Indore Date: [DD-MM-YYYY]
If the bank asks, these projections can be certified by a Chartered Accountant.
Who it's for
- "The bank asked for a project report for my Mudra loan and I don't know the format"
- "I'm applying for PMEGP and need the DPR with subsidy and own contribution calculated"
- "I want to know if my business can pay the EMI before I go to the bank"
- "The CA is asking a big fee and a week's time for a simple report"
- Loan agents and CA offices who prepare first drafts for many small clients
Why people use Loanlekha
The bank manager, DIC or KVIC officer says one thing: bring a project report. A consultant takes days and charges a fee per report, free templates are for someone else's business, and ChatGPT writes nice paragraphs whose numbers don't add up - the EMI is wrong, the DSCR is wrong, and the balance sheet doesn't balance. Officers notice. Loanlekha writes the report for your business, your town and your scheme. Every assumption is listed, the loan schedule is calculated month by month, DSCR and break-even are shown year by year, and a checks section flags what the officer will question before you walk in. Use the free calculators below to size the loan, EMI and subsidy first.
- ✓ Written for your business and scheme: Mudra (Shishu, Kishore, Tarun, Tarun Plus), PMEGP, Stand-Up India, CGTMSE term loan or working capital limit
- ✓ Means of finance done right: PMEGP own contribution (10% / 5%) and margin money subsidy (15-35%), Stand-Up India margin, Mudra without collateral
- ✓ 5-year projected P&L, cash flow and balance sheet in ₹ lakhs, with an assumptions table so every number can be traced
- ✓ Term loan schedule with moratorium, year-wise interest and principal, depreciation on WDV rates, DSCR per year and average, break-even and cash break-even
- ✓ A 'what the bank will check' section: weak DSCR, aggressive sales, low own contribution - flagged with fixes before you submit
- ✓ Documents checklist for your scheme, plus explanations in Hindi if you choose
- ✓ 4 revisions included: change the loan amount, add real quotations, or rewrite a section when the bank asks
How it works
- 1Fill in a few details (or click 'Fill with an example').
- 2Click Generate - your result appears in seconds.
- 3Copy it, print it or save as PDF. Edit anything you like.
Loanlekha vs the alternatives
| Loanlekha | Free templates / Excel formats | General AI chatbot | CA or loan consultant | |
|---|---|---|---|---|
| Written for your business and town | Yes | No, sample business | Yes | Yes |
| Scheme rules (PMEGP subsidy, Mudra category, Stand-Up margin) | Applied | Often outdated | Often wrong or old | Yes |
| EMI, DSCR, balance sheet that tie up | Calculated and checked | If you fill it right | Rarely | Yes |
| Shows what the bank will question | Yes, with fixes | No | No | Sometimes |
| Time | About 10 minutes | Hours of editing | Minutes, then fixing | Usually days |
| Changes when the bank asks | 4 revisions included | Do it yourself | Start over | Often charged extra |
| Price | First report free, then ₹249 / $5 | Free | Free / subscription | Usually a fee per report or a % of the loan |
Get your Loanlekha result
One payment, no subscription. Includes 4 revisions with "Refine this result".
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Frequently asked questions
Will the bank accept this project report?
The report follows the format bank officers and DIC/KVIC officers use: cost of project, means of finance, 5-year projections, repayment schedule, DSCR and break-even, with every assumption listed. Acceptance depends on the bank and on whether your numbers are realistic, which is why the report flags weak points before you submit. Attach real machinery quotations, and if the bank asks for CA-certified projections, have a CA review and sign it.
What is DSCR and what value do banks want?
Debt service coverage ratio = (net profit after tax + depreciation + interest on the term loan) divided by (interest + principal repaid) in a year. It shows how many times your cash earnings cover the loan instalments. Banks usually look for an average of 1.25 to 1.5 or more, and no single year far below that. The free calculator on this page shows your year-wise DSCR from the loan amount, rate, tenure and expected profit.
How much subsidy will I get under PMEGP?
Margin money subsidy is a percentage of the project cost: 15% urban / 25% rural for general category, and 25% urban / 35% rural for special categories (SC, ST, OBC, women, minorities, ex-servicemen, differently abled, transgender, and NER, hill, border and aspirational districts). Project cost is capped at ₹50 lakh for manufacturing and ₹20 lakh for service units. You put in 10% (general) or 5% (special) of the project cost; the bank lends the rest. Use the PMEGP calculator below, and check pmegp.msme.gov.in for the current status of the scheme.
Which Mudra category is my loan - Shishu, Kishore, Tarun or Tarun Plus?
Shishu is up to ₹50,000, Kishore ₹50,001 to ₹5 lakh, Tarun ₹5 lakh to ₹10 lakh, and Tarun Plus above ₹10 lakh up to ₹20 lakh. Tarun Plus is only for borrowers who have taken and repaid a Tarun loan earlier. If you need more than ₹10 lakh for a new business, a term loan under CGTMSE (collateral-free) or PMEGP is usually the route.
Can I change numbers after the report is made?
Yes. Every purchase includes 4 revisions: ask for a different loan amount, longer moratorium, real quotation figures, a rewritten section or a Hindi version, and the whole report is recalculated. You can also edit the Word download yourself.
Can I get the report in Hindi?
Yes. Choose 'Hindi' or 'English tables + Hindi explanations' as the report language. Many banks prefer English tables, so the mixed option keeps the numbers in English and explains each section in Hindi.
Do I need a CA to sign the project report?
For most Mudra and PMEGP loans the bank does not insist on a CA certificate, but some branches and larger loans (and CMA data for working capital limits) do. Ask your branch. This report gives the CA a complete draft to review, which usually costs less than having them prepare it from scratch.
Is this different from asking ChatGPT?
General chatbots write fluent text but the arithmetic rarely ties up: EMIs, interest splits, depreciation and balance sheets come out inconsistent, and scheme rules are often out of date. Loanlekha is built for one job: it applies the scheme's margin and subsidy rules, calculates the loan schedule from a reducing balance, checks DSCR and break-even year by year, and tells you what the bank officer will question.
How much does it cost?
Your first report is free to try. After that, ₹249 / $5 buys one complete report with 4 revisions. There is no subscription. The EMI, DSCR, PMEGP and Mudra calculators on this page are free.