Detailed Project Report
Handicraft Jewellery Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹3.99 L
- Term loan from bank
- ₹2.59 L
- Promoter’s contribution
- ₹0.40 L
- Subsidy
- ₹1.00 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.61 L
- Average DSCR
- -5.78
- 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 handcrafted fashion jewellery sets — a necklace and two bangles — from wood, stone, thread and brass.
| Main product or service | Handicraft Jewellery Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Fashion, gift and handicraft shops
- Buyers at exhibitions and craft fairs
- Online shoppers
- Retail shops on consignment or wholesale
- Craft fairs and exhibitions
- Online marketplaces and social media
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Jewellery electric tube-forming machine | 1 | 1,75,000 | 1,75,000 |
| Jewellery water-jet machine | 1 | 58,500 | 58,500 |
| Bangle ring turning machine | 1 | 42,500 | 42,500 |
| Pliers (round nose, flat nose) (× set) | 1 | 62,000 | 62,000 |
| Other equipment (cutters, rulers, scissors) (× set) | 1 | 42,000 | 42,000 |
| Total | 3,80,000 |
Pre-filled from: PMEGP sample project report — Handicraft Jewellery (prepared by Udyami/Samadhan). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Wood, stone, cloth pieces, thread, joining hooks, paint — average raw material about ₹70–75 a set (report)
- Metals such as brass and copper — for metal parts and findings
- Packing boxes — bangles and neck-piece packed in boxes
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 3.80 |
| Contingency | 0.19 |
| Total fixed capital | 3.99 |
| Working capital margin | 0.00 |
| Total project cost | 3.99 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.40 | 10.0 |
| Subsidy | 1.00 | 25.0 |
| Term loan from bank | 2.59 | 65.0 |
| Total | 3.99 | 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 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 |
| Insurance | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Total cost of operations | 2.98 | 2.98 | 2.98 | 2.98 | 2.98 | 2.98 | 2.98 |
| Operating profit (EBITDA) | -2.98 | -2.98 | -2.98 | -2.98 | -2.98 | -2.98 | -2.98 |
| Depreciation | 0.60 | 0.51 | 0.43 | 0.37 | 0.31 | 0.27 | 0.23 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.28 | 0.24 | 0.20 | 0.16 | 0.11 | 0.07 | 0.02 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.86 | -3.73 | -3.61 | -3.50 | -3.40 | -3.31 | -3.23 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.86 | -3.73 | -3.61 | -3.50 | -3.40 | -3.31 | -3.23 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.86 | -3.73 | -3.61 | -3.50 | -3.40 | -3.31 | -3.23 |
| Depreciation | 0.60 | 0.51 | 0.43 | 0.37 | 0.31 | 0.27 | 0.23 |
| Cash accruals (PAT + depreciation) | -3.26 | -3.22 | -3.18 | -3.14 | -3.09 | -3.05 | -3.00 |
| Term loan repaid | 0.20 | 0.40 | 0.40 | 0.40 | 0.40 | 0.40 | 0.40 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.46 | -3.62 | -3.58 | -3.53 | -3.49 | -3.45 | -3.40 |
| Cash and bank | -3.46 | -7.08 | -10.66 | -14.19 | -17.68 | -21.13 | -24.53 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.40 | 1.40 | 1.40 | 1.40 | 1.40 | 1.40 | 1.40 |
| Reserves and surplus | -3.86 | -7.59 | -11.20 | -14.70 | -18.11 | -21.42 | -24.65 |
| Term loan outstanding | 2.39 | 2.00 | 1.60 | 1.20 | 0.80 | 0.40 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -0.07 | -4.20 | -8.21 | -12.11 | -15.91 | -19.63 | -23.25 |
| Net fixed assets | 3.39 | 2.88 | 2.45 | 2.08 | 1.77 | 1.50 | 1.28 |
| 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 | -3.46 | -7.08 | -10.66 | -14.19 | -17.68 | -21.13 | -24.53 |
| Total assets | -0.07 | -4.20 | -8.21 | -12.11 | -15.91 | -19.63 | -23.25 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -6.21 | -4.64 | -4.98 | -5.37 | -5.84 | -6.39 | -7.05 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -5.78 |
|---|---|
| Lowest DSCR | -7.05 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.60 | 0.51 | 0.43 | 0.37 | 0.31 | 0.27 | 0.23 |
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 | 2.59 | 0.28 | 0.20 | 2.39 |
| 2 | 2.39 | 0.24 | 0.40 | 2.00 |
| 3 | 2.00 | 0.20 | 0.40 | 1.60 |
| 4 | 1.60 | 0.16 | 0.40 | 1.20 |
| 5 | 1.20 | 0.11 | 0.40 | 0.80 |
| 6 | 0.80 | 0.07 | 0.40 | 0.40 |
| 7 | 0.40 | 0.02 | 0.40 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- Trademark for the brand (optional)
- Artisan card from the Development Commissioner (Handicrafts) for craft schemes and fairs
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)
- Mukhyamantri Yuva Udyami Vikas Abhiyan (CM-YUVA)
19 Sources
- PMEGP sample project report — Handicraft Jewellery (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Handicraft_Jwellery_%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.