Detailed Project Report
Carpentry Workshop (Wooden Furniture)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹7.50 L
- Term loan from bank
- ₹4.87 L
- Promoter’s contribution
- ₹0.75 L
- Subsidy
- ₹1.87 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.25 L
- Average DSCR
- -3.17
- 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
Make and repair doors, windows, chairs and other wooden furniture with basic woodworking machines.
| Main product or service | Carpentry Workshop (Wooden Furniture) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Households (doors, windows, furniture)
- Builders and contractors
- Schools and offices
- Orders taken at the workshop
- Contracts with builders and institutions
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Wood-working lathe, 6 ft, with 1 HP motor | 1 | 0 | 0 |
| Band saw machine 18 in with 5 HP motor | 1 | 0 | 0 |
| Sander-cum-grinder 48 × 6 in with 1 HP motor | 1 | 0 | 0 |
| Planer machine 18 in | 1 | 0 | 0 |
| Spindle moulder with electricals | 1 | 0 | 0 |
| Circular saw 12 in with electricals | 1 | 0 | 0 |
| Drilling machine, ½ in capacity | 1 | 0 | 0 |
| Hand tools, office furniture and equipment | 1 | 0 | 0 |
| Equipment total (PMEGP profile) | 1 | 5,14,000 | 5,14,000 |
| Circular saw, surface grinder, universal wood-working machine and drill (GRY profile total) | 1 | 2,00,000 | 2,00,000 |
| Total | 7,14,000 |
Pre-filled from: KVIC Project Profile — Carpentary Workshop (PMEGP); KVIC Project Profile — Carpentry Unit (PMEGP). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Timber of different kinds — raw material ₹7.80 lakh a year in the PMEGP profile
- Timber, hardware and polish — raw material ₹25.00 lakh a year in the GRY profile
- Labels and packing material — ₹40,000 a year (PMEGP profile)
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 7.14 |
| Contingency | 0.36 |
| Total fixed capital | 7.50 |
| Working capital margin | 0.00 |
| Total project cost | 7.50 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.75 | 10.0 |
| Subsidy | 1.87 | 25.0 |
| Term loan from bank | 4.87 | 65.0 |
| Total | 7.50 | 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 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 |
| Insurance | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 |
| Total cost of operations | 3.07 | 3.07 | 3.07 | 3.07 | 3.07 | 3.07 | 3.07 |
| Operating profit (EBITDA) | -3.07 | -3.07 | -3.07 | -3.07 | -3.07 | -3.07 | -3.07 |
| Depreciation | 1.12 | 0.96 | 0.81 | 0.69 | 0.59 | 0.50 | 0.42 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.53 | 0.46 | 0.37 | 0.29 | 0.21 | 0.13 | 0.04 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.72 | -4.48 | -4.25 | -4.05 | -3.86 | -3.69 | -3.54 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.72 | -4.48 | -4.25 | -4.05 | -3.86 | -3.69 | -3.54 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.72 | -4.48 | -4.25 | -4.05 | -3.86 | -3.69 | -3.54 |
| Depreciation | 1.12 | 0.96 | 0.81 | 0.69 | 0.59 | 0.50 | 0.42 |
| Cash accruals (PAT + depreciation) | -3.59 | -3.52 | -3.44 | -3.36 | -3.28 | -3.19 | -3.11 |
| Term loan repaid | 0.37 | 0.75 | 0.75 | 0.75 | 0.75 | 0.75 | 0.75 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.97 | -4.27 | -4.19 | -4.11 | -4.03 | -3.94 | -3.86 |
| Cash and bank | -3.97 | -8.24 | -12.44 | -16.54 | -20.57 | -24.52 | -28.38 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.62 | 2.62 | 2.62 | 2.62 | 2.62 | 2.62 | 2.62 |
| Reserves and surplus | -4.72 | -9.20 | -13.45 | -17.50 | -21.37 | -25.06 | -28.60 |
| Term loan outstanding | 4.50 | 3.75 | 3.00 | 2.25 | 1.50 | 0.75 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 2.40 | -2.83 | -7.83 | -12.63 | -17.24 | -21.69 | -25.97 |
| Net fixed assets | 6.37 | 5.42 | 4.60 | 3.91 | 3.33 | 2.83 | 2.40 |
| 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 | -3.97 | -8.24 | -12.44 | -16.54 | -20.57 | -24.52 | -28.38 |
| Total assets | 2.40 | -2.83 | -7.83 | -12.63 | -17.24 | -21.69 | -25.97 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -3.40 | -2.54 | -2.73 | -2.94 | -3.20 | -3.50 | -3.86 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -3.17 |
|---|---|
| Lowest DSCR | -3.86 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.12 | 0.96 | 0.81 | 0.69 | 0.59 | 0.50 | 0.42 |
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 | 4.87 | 0.53 | 0.37 | 4.50 |
| 2 | 4.50 | 0.46 | 0.75 | 3.75 |
| 3 | 3.75 | 0.37 | 0.75 | 3.00 |
| 4 | 3.00 | 0.29 | 0.75 | 2.25 |
| 5 | 2.25 | 0.21 | 0.75 | 1.50 |
| 6 | 1.50 | 0.13 | 0.75 | 0.75 |
| 7 | 0.75 | 0.04 | 0.75 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- Trade licence
- Buy timber only from licensed depots (state forest rules)
- Fire safety
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 — Carpentary Workshop (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/CARPENTARY_WORKSHOP_%28_RURAL_ENGG._AND_BIO-TECH_INDUSTRY_%29.pdf
- KVIC Project Profile — Carpentry Unit (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/CARPENTRY_UNIT_%28_RURAL_ENGG._AND_BIO-TECH_INDUSTRY_%29.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.