Detailed Project Report
Jute Wall Hanging Making
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹6.62 L
- Term loan from bank
- ₹4.30 L
- Promoter’s contribution
- ₹0.66 L
- Subsidy
- ₹1.65 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.09 L
- Average DSCR
- -3.56
- 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
Weave and decorate jute wall hangings — a handicraft with a strong cluster in Ghazipur, UP.
| Main product or service | Jute Wall Hanging Making |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Home-decor and handicraft shops
- Exporters and foreign buyers
- Gift buyers
- Craft fairs and exhibitions
- Exporters and online marketplaces
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Jute weaving loom | 1 | 6,00,000 | 6,00,000 |
| Other machines and equipment (× 1 lot) | 1 | 30,000 | 30,000 |
| Total | 6,30,000 |
Pre-filled from: PMEGP sample project report — Jute Wall Hanging (prepared by Udyami/Samadhan); DGFT – ITC(HS) 2022 Schedule (Notification 54 dated 9 Feb 2022). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Raw jute and jute yarn — from the local market or Varanasi, per the report
- Silk-kela yarn — for decoration
- Velvet paper and beads — for backing and embellishment
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 6.30 |
| Contingency | 0.32 |
| Total fixed capital | 6.62 |
| Working capital margin | 0.00 |
| Total project cost | 6.62 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.66 | 10.0 |
| Subsidy | 1.65 | 25.0 |
| Term loan from bank | 4.30 | 65.0 |
| Total | 6.62 | 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 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 | 0.13 |
| Insurance | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Total cost of operations | 3.05 | 3.05 | 3.05 | 3.05 | 3.05 | 3.05 | 3.05 |
| Operating profit (EBITDA) | -3.05 | -3.05 | -3.05 | -3.05 | -3.05 | -3.05 | -3.05 |
| Depreciation | 0.99 | 0.84 | 0.72 | 0.61 | 0.52 | 0.44 | 0.37 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.47 | 0.40 | 0.33 | 0.26 | 0.18 | 0.11 | 0.04 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -4.50 | -4.29 | -4.09 | -3.91 | -3.75 | -3.60 | -3.46 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.50 | -4.29 | -4.09 | -3.91 | -3.75 | -3.60 | -3.46 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.50 | -4.29 | -4.09 | -3.91 | -3.75 | -3.60 | -3.46 |
| Depreciation | 0.99 | 0.84 | 0.72 | 0.61 | 0.52 | 0.44 | 0.37 |
| Cash accruals (PAT + depreciation) | -3.51 | -3.45 | -3.38 | -3.30 | -3.23 | -3.16 | -3.08 |
| Term loan repaid | 0.33 | 0.66 | 0.66 | 0.66 | 0.66 | 0.66 | 0.66 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.84 | -4.11 | -4.04 | -3.96 | -3.89 | -3.82 | -3.75 |
| Cash and bank | -3.84 | -7.95 | -11.99 | -15.95 | -19.85 | -23.66 | -27.41 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.32 | 2.32 | 2.32 | 2.32 | 2.32 | 2.32 | 2.32 |
| Reserves and surplus | -4.50 | -8.80 | -12.89 | -16.80 | -20.55 | -24.15 | -27.61 |
| Term loan outstanding | 3.97 | 3.31 | 2.65 | 1.98 | 1.32 | 0.66 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 1.78 | -3.17 | -7.93 | -12.50 | -16.91 | -21.17 | -25.29 |
| Net fixed assets | 5.62 | 4.78 | 4.06 | 3.45 | 2.94 | 2.49 | 2.12 |
| 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 | -3.84 | -7.95 | -11.99 | -15.95 | -19.85 | -23.66 | -27.41 |
| Total assets | 1.78 | -3.17 | -7.93 | -12.50 | -16.91 | -21.17 | -25.29 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -3.83 | -2.86 | -3.07 | -3.31 | -3.60 | -3.94 | -4.34 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -3.56 |
|---|---|
| Lowest DSCR | -4.34 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.99 | 0.84 | 0.72 | 0.61 | 0.52 | 0.44 | 0.37 |
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 | 4.30 | 0.47 | 0.33 | 3.97 |
| 2 | 3.97 | 0.40 | 0.66 | 3.31 |
| 3 | 3.31 | 0.33 | 0.66 | 2.65 |
| 4 | 2.65 | 0.26 | 0.66 | 1.98 |
| 5 | 1.98 | 0.18 | 0.66 | 1.32 |
| 6 | 1.32 | 0.11 | 0.66 | 0.66 |
| 7 | 0.66 | 0.04 | 0.66 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Artisan identity card (Pehchan) from the Development Commissioner (Handicrafts), for craft schemes
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 — Jute Wall Hanging (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Jute_Wall_Hanging_%28_Samadhan_Projects_%29.pdf
- DGFT – ITC(HS) 2022 Schedule (Notification 54 dated 9 Feb 2022) — https://content.dgft.gov.in/Website/dgftprod/7d5fd1eb-ad39-4c99-b760-014223657469/Eng-Notification%2054%20dated%209%20Feb%202022%20ITC(HS)%202022%20_with%20Annexures.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.