Detailed Project Report
Lac Bangle Making
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹0.05 L
- Term loan from bank
- ₹0.03 L
- Promoter’s contribution
- ₹0.01 L
- Subsidy
- ₹0.01 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-2.89 L
- Average DSCR
- -424.86
- 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
Shape heated lac over bangle rings and decorate it — a two-step village craft with tiny investment.
| Main product or service | Lac Bangle Making |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Women, mostly in rural areas
- Bangle shops
- Buyers at fairs and festivals
- Local bangle and cosmetic shops
- Weekly haats and fairs
- Handicraft exhibitions
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Charcoal stove, scissors, tongs, kalgooti, thin iron rod, iron disc, iron plate, pots and wooden roller (× 1 set) | 1 | 5,000 | 5,000 |
| Total | 5,000 |
Pre-filled from: KVIC Project Profile — Lac Bangles Manufacturing Unit (PMEGP); DGFT – ITC(HS) classification of export and import items. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Bangle rings, lac, titanium powder, rosin and polish — ₹2.00 lakh a year in the profile
- Labels and packing material — ₹2,000 a year in the profile
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 0.05 |
| Contingency | 0.00 |
| Total fixed capital | 0.05 |
| Working capital margin | 0.00 |
| Total project cost | 0.05 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.01 | 10.0 |
| Subsidy | 0.01 | 25.0 |
| Term loan from bank | 0.03 | 65.0 |
| Total | 0.05 | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Insurance | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total cost of operations | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 |
| Operating profit (EBITDA) | -2.88 | -2.88 | -2.88 | -2.88 | -2.88 | -2.88 | -2.88 |
| Depreciation | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -2.89 | -2.89 | -2.89 | -2.89 | -2.89 | -2.89 | -2.88 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -2.89 | -2.89 | -2.89 | -2.89 | -2.89 | -2.89 | -2.88 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -2.89 | -2.89 | -2.89 | -2.89 | -2.89 | -2.89 | -2.88 |
| Depreciation | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 |
| Cash accruals (PAT + depreciation) | -2.89 | -2.88 | -2.88 | -2.88 | -2.88 | -2.88 | -2.88 |
| Term loan repaid | 0.00 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -2.89 | -2.89 | -2.89 | -2.89 | -2.89 | -2.89 | -2.89 |
| Cash and bank | -2.89 | -5.78 | -8.67 | -11.56 | -14.44 | -17.33 | -20.22 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Reserves and surplus | -2.89 | -5.78 | -8.67 | -11.56 | -14.45 | -17.33 | -20.22 |
| Term loan outstanding | 0.03 | 0.03 | 0.02 | 0.02 | 0.01 | 0.01 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -2.84 | -5.74 | -8.63 | -11.53 | -14.42 | -17.31 | -20.20 |
| Net fixed assets | 0.04 | 0.04 | 0.03 | 0.03 | 0.02 | 0.02 | 0.02 |
| 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 | -2.89 | -5.78 | -8.67 | -11.56 | -14.44 | -17.33 | -20.22 |
| Total assets | -2.84 | -5.74 | -8.63 | -11.53 | -14.42 | -17.31 | -20.20 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -456.01 | -340.97 | -365.98 | -394.95 | -428.91 | -469.25 | -517.96 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -424.86 |
|---|---|
| Lowest DSCR | -517.96 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 |
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 | 0.03 | 0.00 | 0.00 | 0.03 |
| 2 | 0.03 | 0.00 | 0.01 | 0.03 |
| 3 | 0.03 | 0.00 | 0.01 | 0.02 |
| 4 | 0.02 | 0.00 | 0.01 | 0.02 |
| 5 | 0.02 | 0.00 | 0.01 | 0.01 |
| 6 | 0.01 | 0.00 | 0.01 | 0.01 |
| 7 | 0.01 | 0.00 | 0.01 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST once turnover crosses the threshold
- Artisan card from the Development Commissioner (Handicrafts) — helps at fairs and with schemes
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Mukhyamantri Yuva Udyami Vikas Abhiyan (CM-YUVA)
19 Sources
- KVIC Project Profile — Lac Bangles Manufacturing Unit (PMEGP) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/LAC_BANGLES_MANUFACTURING_UNIT_%28_MINERAL_BASED_INDUSTRY_%29.pdf
- DGFT – ITC(HS) classification of export and import items — https://www.dgft.gov.in/CP/?opt=itchs-import-export
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.