Detailed Project Report
Handloom and Handicrafts Retail Shop
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹6.14 L
- Term loan from bank
- ₹5.53 L
- Promoter’s contribution
- ₹0.61 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.12 L
- Average DSCR
- -2.76
- 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
Sell hand-woven textiles, rugs, woodcraft, pottery, Aipan art and traditional jewellery made by local artisans.
| Main product or service | Handloom and Handicrafts Retail Shop |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Tourists and pilgrims
- Gift buyers
- Households wanting handmade décor
- Hotels and homestays
- Walk-in shop sales
- Online catalogue and social media
- Supply to hotels and homestays
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Display shelves (× 3) | 1 | 45,000 | 45,000 |
| Display tables or stands (× 2) | 1 | 50,000 | 50,000 |
| Mirrors (× 4) | 1 | 40,000 | 40,000 |
| Storage units (× 20) | 1 | 3,00,000 | 3,00,000 |
| Lighting fixtures (× 5) | 1 | 50,000 | 50,000 |
| Traditional artwork and wall décor | 1 | 1,00,000 | 1,00,000 |
| Total | 5,85,000 |
Pre-filled from: Uttarakhand DUY project profile — Handloom & Handicrafts Retail. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Hand-woven textiles, carpets and rugs — bought from local weavers and cooperatives
- Woodcraft, pottery, clay and metal crafts — from artisan clusters
- Aipan paintings and traditional jewellery — from local artists
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 5.85 |
| Contingency | 0.29 |
| Total fixed capital | 6.14 |
| Working capital margin | 0.00 |
| Total project cost | 6.14 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.61 | 10.0 |
| Term loan from bank | 5.53 | 90.0 |
| Total | 6.14 | 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 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 |
| Insurance | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Total cost of operations | 3.03 | 3.03 | 3.03 | 3.03 | 3.03 | 3.03 | 3.03 |
| Operating profit (EBITDA) | -3.03 | -3.03 | -3.03 | -3.03 | -3.03 | -3.03 | -3.03 |
| Depreciation | 0.92 | 0.78 | 0.67 | 0.57 | 0.48 | 0.41 | 0.35 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.60 | 0.52 | 0.42 | 0.33 | 0.24 | 0.14 | 0.05 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.55 | -4.34 | -4.12 | -3.93 | -3.75 | -3.59 | -3.43 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.55 | -4.34 | -4.12 | -3.93 | -3.75 | -3.59 | -3.43 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.55 | -4.34 | -4.12 | -3.93 | -3.75 | -3.59 | -3.43 |
| Depreciation | 0.92 | 0.78 | 0.67 | 0.57 | 0.48 | 0.41 | 0.35 |
| Cash accruals (PAT + depreciation) | -3.63 | -3.55 | -3.46 | -3.36 | -3.27 | -3.18 | -3.08 |
| Term loan repaid | 0.43 | 0.85 | 0.85 | 0.85 | 0.85 | 0.85 | 0.85 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.06 | -4.40 | -4.31 | -4.22 | -4.12 | -4.03 | -3.93 |
| Cash and bank | -4.06 | -8.46 | -12.77 | -16.98 | -21.11 | -25.13 | -29.07 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.61 | 0.61 | 0.61 | 0.61 | 0.61 | 0.61 | 0.61 |
| Reserves and surplus | -4.55 | -8.89 | -13.01 | -16.94 | -20.70 | -24.28 | -27.71 |
| Term loan outstanding | 5.10 | 4.25 | 3.40 | 2.55 | 1.70 | 0.85 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 1.16 | -4.02 | -9.00 | -13.78 | -18.38 | -22.82 | -27.10 |
| Net fixed assets | 5.22 | 4.44 | 3.77 | 3.21 | 2.73 | 2.32 | 1.97 |
| 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 | -4.06 | -8.46 | -12.77 | -16.98 | -21.11 | -25.13 | -29.07 |
| Total assets | 1.16 | -4.02 | -9.00 | -13.78 | -18.38 | -22.82 | -27.10 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -2.96 | -2.22 | -2.38 | -2.57 | -2.79 | -3.05 | -3.37 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.76 |
|---|---|
| Lowest DSCR | -3.37 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.92 | 0.78 | 0.67 | 0.57 | 0.48 | 0.41 | 0.35 |
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 | 5.53 | 0.60 | 0.43 | 5.10 |
| 2 | 5.10 | 0.52 | 0.85 | 4.25 |
| 3 | 4.25 | 0.42 | 0.85 | 3.40 |
| 4 | 3.40 | 0.33 | 0.85 | 2.55 |
| 5 | 2.55 | 0.24 | 0.85 | 1.70 |
| 6 | 1.70 | 0.14 | 0.85 | 0.85 |
| 7 | 0.85 | 0.05 | 0.85 | 0.00 |
17 Licences and registrations
- Business registration with the municipal body or panchayat
- Trade licence
- GST registration
18 Government schemes that may apply
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
- Stand-Up India
19 Sources
- Uttarakhand DUY project profile — Handloom & Handicrafts Retail — https://duy-heduk.org/downloads/project-profiles/handloom-&-handicrafts-retail.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.