Detailed Project Report
Carpet Finishing Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹1.96 L
- Term loan from bank
- ₹1.28 L
- Promoter’s contribution
- ₹0.20 L
- Subsidy
- ₹0.49 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.24 L
- Average DSCR
- -11.55
- 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
Bind, trim, wash, shave, stretch and back woven carpets so they are ready to sell or export.
| Main product or service | Carpet Finishing Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Carpet exporters in the cluster
- Domestic carpet retailers
- Job work for exporters
- Sale of finished carpets to traders
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Carpet binding machine (× 3) | 1 | 37,000 | 37,000 |
| Hot glue gun | 1 | 0 | 0 |
| Carpet scissors, sharp steel blades and other tools | 1 | 0 | 0 |
| Material handling: trolleys and bins | 1 | 0 | 0 |
| Machinery and equipment total (approx., without GST and installation) | 1 | 1,50,000 | 1,50,000 |
| Total | 1,87,000 |
Pre-filled from: PMEGP sample project report — Carpet Finishing Work (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Woven carpets and rugs
- Dyes and chemicals for finishing
- Carpet binding tape and hot glue — average raw material cost ₹35–50 per sq ft of finished carpet
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 1.87 |
| Contingency | 0.09 |
| Total fixed capital | 1.96 |
| Working capital margin | 0.00 |
| Total project cost | 1.96 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.20 | 10.0 |
| Subsidy | 0.49 | 25.0 |
| Term loan from bank | 1.28 | 65.0 |
| Total | 1.96 | 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 | 0.29 | 0.25 | 0.21 | 0.18 | 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 | 0.14 | 0.12 | 0.10 | 0.08 | 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 | -3.36 | -3.30 | -3.24 | -3.19 | -3.14 | -3.09 | -3.05 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.36 | -3.30 | -3.24 | -3.19 | -3.14 | -3.09 | -3.05 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.36 | -3.30 | -3.24 | -3.19 | -3.14 | -3.09 | -3.05 |
| Depreciation | 0.29 | 0.25 | 0.21 | 0.18 | 0.15 | 0.13 | 0.11 |
| Cash accruals (PAT + depreciation) | -3.07 | -3.05 | -3.03 | -3.01 | -2.98 | -2.96 | -2.94 |
| Term loan repaid | 0.10 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.17 | -3.25 | -3.22 | -3.20 | -3.18 | -3.16 | -3.14 |
| Cash and bank | -3.17 | -6.41 | -9.63 | -12.84 | -16.02 | -19.18 | -22.31 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.69 | 0.69 | 0.69 | 0.69 | 0.69 | 0.69 | 0.69 |
| Reserves and surplus | -3.36 | -6.66 | -9.90 | -13.09 | -16.23 | -19.32 | -22.37 |
| Term loan outstanding | 1.18 | 0.98 | 0.79 | 0.59 | 0.39 | 0.20 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -1.50 | -4.99 | -8.43 | -11.81 | -15.15 | -18.43 | -21.68 |
| Net fixed assets | 1.67 | 1.42 | 1.21 | 1.02 | 0.87 | 0.74 | 0.63 |
| 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 | -3.17 | -6.41 | -9.63 | -12.84 | -16.02 | -19.18 | -22.31 |
| Total assets | -1.50 | -4.99 | -8.43 | -11.81 | -15.15 | -18.43 | -21.68 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -12.39 | -9.27 | -9.95 | -10.74 | -11.66 | -12.75 | -14.08 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -11.55 |
|---|---|
| Lowest DSCR | -14.08 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.29 | 0.25 | 0.21 | 0.18 | 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 | 1.28 | 0.14 | 0.10 | 1.18 |
| 2 | 1.18 | 0.12 | 0.20 | 0.98 |
| 3 | 0.98 | 0.10 | 0.20 | 0.79 |
| 4 | 0.79 | 0.08 | 0.20 | 0.59 |
| 5 | 0.59 | 0.05 | 0.20 | 0.39 |
| 6 | 0.39 | 0.03 | 0.20 | 0.20 |
| 7 | 0.20 | 0.01 | 0.20 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- Pollution Control Board consent (washing effluent)
- Trade licence
- Labour registration
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
- PMEGP sample project report — Carpet Finishing Work (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Carpet_Finishing_Work_%28_Samadhan_Projects_%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.