Detailed Project Report
Local Handicraft and Toy Making School
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹0.80 L
- Term loan from bank
- ₹0.52 L
- Promoter’s contribution
- ₹0.08 L
- Subsidy
- ₹0.20 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.03 L
- Average DSCR
- -28.13
- 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
Teach youth and SHG women to make wooden, wool and bamboo toys and crafts, and sell what they make.
| Main product or service | Local Handicraft and Toy Making School |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Montessori and experiential-learning schools
- Tourists buying souvenirs
- Urban and e-commerce buyers of decor and gifts
- Companies ordering custom gifts
- Exhibitions and tourist outlets
- E-commerce platforms
- Paid workshops and certification courses
- Government skill-scheme reimbursements
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Wood carving kits (× 10 sets) | 1 | 4,000 | 4,000 |
| Mini wood lathe (manual) (× 2) | 1 | 25,000 | 25,000 |
| Wool carding machine (manual) (× 2) | 1 | 15,000 | 15,000 |
| Bamboo cutting and shaping kit (× 3 sets) | 1 | 8,000 | 8,000 |
| Natural dye tank and tools (× 2) | 1 | 10,000 | 10,000 |
| Stitching machines (manual) (× 4) | 1 | 12,000 | 12,000 |
| Safety kits (gloves, masks) (× 10 sets) | 1 | 2,000 | 2,000 |
| Total | 76,000 |
Pre-filled from: Devbhoomi Udyamita Yojana (Uttarakhand DUY) project profile — Local Handicraft & Toy Making School; World Customs Organization – HS Nomenclature 2022 edition. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Softwoods (pine, rhododendron) and bamboo — local, with forest department collaboration
- Wool, cotton thread and natural dyes — from local wool units and farm residues
- Raw materials (annual stock) — ₹3,00,000 in the first-year cost
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 0.76 |
| Contingency | 0.04 |
| Total fixed capital | 0.80 |
| Working capital margin | 0.00 |
| Total project cost | 0.80 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.08 | 10.0 |
| Subsidy | 0.20 | 25.0 |
| Term loan from bank | 0.52 | 65.0 |
| Total | 0.80 | 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 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Insurance | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total cost of operations | 2.90 | 2.90 | 2.90 | 2.90 | 2.90 | 2.90 | 2.90 |
| Operating profit (EBITDA) | -2.90 | -2.90 | -2.90 | -2.90 | -2.90 | -2.90 | -2.90 |
| Depreciation | 0.12 | 0.10 | 0.09 | 0.07 | 0.06 | 0.05 | 0.05 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.06 | 0.05 | 0.04 | 0.03 | 0.02 | 0.01 | 0.00 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.08 | -3.05 | -3.03 | -3.00 | -2.98 | -2.97 | -2.95 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.08 | -3.05 | -3.03 | -3.00 | -2.98 | -2.97 | -2.95 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.08 | -3.05 | -3.03 | -3.00 | -2.98 | -2.97 | -2.95 |
| Depreciation | 0.12 | 0.10 | 0.09 | 0.07 | 0.06 | 0.05 | 0.05 |
| Cash accruals (PAT + depreciation) | -2.96 | -2.95 | -2.94 | -2.93 | -2.92 | -2.91 | -2.90 |
| Term loan repaid | 0.04 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.00 | -3.03 | -3.02 | -3.01 | -3.00 | -2.99 | -2.98 |
| Cash and bank | -3.00 | -6.02 | -9.04 | -12.05 | -15.06 | -18.05 | -21.03 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 |
| Reserves and surplus | -3.08 | -6.13 | -9.15 | -12.16 | -15.14 | -18.11 | -21.06 |
| Term loan outstanding | 0.48 | 0.40 | 0.32 | 0.24 | 0.16 | 0.08 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -2.32 | -5.45 | -8.55 | -11.64 | -14.70 | -17.75 | -20.78 |
| Net fixed assets | 0.68 | 0.58 | 0.49 | 0.42 | 0.35 | 0.30 | 0.26 |
| 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 | -3.00 | -6.02 | -9.04 | -12.05 | -15.06 | -18.05 | -21.03 |
| Total assets | -2.32 | -5.45 | -8.55 | -11.64 | -14.70 | -17.75 | -20.78 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -30.19 | -22.58 | -24.23 | -26.15 | -28.40 | -31.07 | -34.30 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -28.13 |
|---|---|
| Lowest DSCR | -34.30 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.12 | 0.10 | 0.09 | 0.07 | 0.06 | 0.05 | 0.05 |
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 | 0.52 | 0.06 | 0.04 | 0.48 |
| 2 | 0.48 | 0.05 | 0.08 | 0.40 |
| 3 | 0.40 | 0.04 | 0.08 | 0.32 |
| 4 | 0.32 | 0.03 | 0.08 | 0.24 |
| 5 | 0.24 | 0.02 | 0.08 | 0.16 |
| 6 | 0.16 | 0.01 | 0.08 | 0.08 |
| 7 | 0.08 | 0.00 | 0.08 | 0.00 |
17 Licences and registrations
- Udyam
- GST
- BIS certification for toys sold in India (Toys Quality Control Order)
- Training-partner registration with the state skill mission (for funded courses)
- Forest department transit permits for wood and bamboo where required
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
- Devbhoomi Udyamita Yojana (Uttarakhand DUY) project profile — Local Handicraft & Toy Making School — https://duy-heduk.org/downloads/project-profiles/Local_Handicraft_&_Toy_Making_School_in_Uttarakhand.pdf
- World Customs Organization – HS Nomenclature 2022 edition — https://www.wcoomd.org/en/topics/nomenclature/instrument-and-tools/hs-nomenclature-2022-edition/hs-nomenclature-2022-edition.aspx
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.