Detailed Project Report
Metal Handicraft Unit
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹1.70 L
- Term loan from bank
- ₹1.11 L
- Promoter’s contribution
- ₹0.17 L
- Subsidy
- ₹0.43 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.19 L
- Average DSCR
- -13.30
- 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
Cast, engrave and polish brass and copper into idols, decor pieces, utensils and gift items.
| Main product or service | Metal Handicraft Unit |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Gift, handicraft and puja-item shops
- Tourists and temples
- Exporters and overseas buyers
- Discount, department and specialty stores
- Online retail
- Craft fairs and exhibitions
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Furnace oven | 1 | 22,200 | 22,200 |
| Lathe machine | 1 | 85,000 | 85,000 |
| Buffing machine | 1 | 25,500 | 25,500 |
| Hand blower | 1 | 6,300 | 6,300 |
| Chisel (× —) | 1 | 5,000 | 5,000 |
| Hand-operated drill | 1 | 4,500 | 4,500 |
| Scrapers, files, hammer, tongs, pincers, crucible, mallet (× set) | 1 | 13,500 | 13,500 |
| Total | 1,62,000 |
Pre-filled from: PMEGP sample project report — Metal Craft (prepared by Udyami/Samadhan); DGFT – ITC(HS) classification of export and import items. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Brass and copper — main raw materials named in the report
- Brass, zinc and borax powders — for casting and joining
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 1.62 |
| Contingency | 0.08 |
| Total fixed capital | 1.70 |
| Working capital margin | 0.00 |
| Total project cost | 1.70 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.17 | 10.0 |
| Subsidy | 0.43 | 25.0 |
| Term loan from bank | 1.11 | 65.0 |
| Total | 1.70 | 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 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Insurance | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Total cost of operations | 2.92 | 2.92 | 2.92 | 2.92 | 2.92 | 2.92 | 2.92 |
| Operating profit (EBITDA) | -2.92 | -2.92 | -2.92 | -2.92 | -2.92 | -2.92 | -2.92 |
| Depreciation | 0.26 | 0.22 | 0.18 | 0.16 | 0.13 | 0.11 | 0.10 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.12 | 0.10 | 0.08 | 0.07 | 0.05 | 0.03 | 0.01 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.30 | -3.24 | -3.19 | -3.15 | -3.10 | -3.06 | -3.03 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.30 | -3.24 | -3.19 | -3.15 | -3.10 | -3.06 | -3.03 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.30 | -3.24 | -3.19 | -3.15 | -3.10 | -3.06 | -3.03 |
| Depreciation | 0.26 | 0.22 | 0.18 | 0.16 | 0.13 | 0.11 | 0.10 |
| Cash accruals (PAT + depreciation) | -3.04 | -3.03 | -3.01 | -2.99 | -2.97 | -2.95 | -2.93 |
| Term loan repaid | 0.09 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.13 | -3.20 | -3.18 | -3.16 | -3.14 | -3.12 | -3.10 |
| Cash and bank | -3.13 | -6.32 | -9.50 | -12.66 | -15.80 | -18.92 | -22.02 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.60 | 0.60 | 0.60 | 0.60 | 0.60 | 0.60 | 0.60 |
| Reserves and surplus | -3.30 | -6.54 | -9.73 | -12.88 | -15.98 | -19.05 | -22.07 |
| Term loan outstanding | 1.02 | 0.85 | 0.68 | 0.51 | 0.34 | 0.17 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -1.68 | -5.09 | -8.46 | -11.77 | -15.05 | -18.28 | -21.48 |
| Net fixed assets | 1.45 | 1.23 | 1.04 | 0.89 | 0.75 | 0.64 | 0.55 |
| 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 | -3.13 | -6.32 | -9.50 | -12.66 | -15.80 | -18.92 | -22.02 |
| Total assets | -1.68 | -5.09 | -8.46 | -11.77 | -15.05 | -18.28 | -21.48 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -14.28 | -10.67 | -11.46 | -12.36 | -13.43 | -14.69 | -16.22 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -13.30 |
|---|---|
| Lowest DSCR | -16.22 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.26 | 0.22 | 0.18 | 0.16 | 0.13 | 0.11 | 0.10 |
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 | 1.11 | 0.12 | 0.09 | 1.02 |
| 2 | 1.02 | 0.10 | 0.17 | 0.85 |
| 3 | 0.85 | 0.08 | 0.17 | 0.68 |
| 4 | 0.68 | 0.07 | 0.17 | 0.51 |
| 5 | 0.51 | 0.05 | 0.17 | 0.34 |
| 6 | 0.34 | 0.03 | 0.17 | 0.17 |
| 7 | 0.17 | 0.01 | 0.17 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Artisan card / handicraft registration with the Development Commissioner (Handicrafts) (optional)
- IEC for exports
- State pollution control board consent (melting furnace)
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 — Metal Craft (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Metal_Craft_DPR_%28_Samadhan_Projects_%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.