Detailed Project Report
Rubber Balloons
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹4.41 L
- Term loan from bank
- ₹2.87 L
- Promoter’s contribution
- ₹0.44 L
- Subsidy
- ₹1.10 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.69 L
- Average DSCR
- -5.25
- 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
Dip natural-latex balloons on formers, cure them in an oven and sell packets of 100.
| Main product or service | Rubber Balloons |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Party, birthday and event decorators
- Toy and gift shops
- Fair and festival vendors
- Toy and party-goods wholesalers
- Retail shops
- Online sellers
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| De-ammoniating vessel, 100 litre, with stirrer and 0.5 HP motor | 1 | 90,000 | 90,000 |
| 4-jar pot mill with 1 HP motor | 1 | 45,000 | 45,000 |
| Paddle mixer, 3 litre, 0.5 HP | 1 | 35,000 | 35,000 |
| Dipping vats, 100 litre, with covers (× 2) | 1 | 30,000 | 30,000 |
| Electric hot-air oven | 1 | 1,20,000 | 1,20,000 |
| Formers, testing equipment, weighing balance and tools (× lump sum) | 1 | 1,00,000 | 1,00,000 |
| Total | 4,20,000 |
Pre-filled from: PMEGP sample project report — Rubber Balloons (prepared by Udyami/Samadhan); World Customs Organization – HS Nomenclature 2022 edition. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- 60% DRC natural rubber latex — ₹30.00 lakh a year at full capacity
- Casein, potassium hydroxide, sulphur, zinc oxide, Vulkanox SP, Vulkacit LDA — ₹1.75 L, ₹1.45 L, ₹1.74 L, ₹1.00 L, ₹1.35 L and ₹0.95 L a year
- Pigments — ₹1.00 lakh a year
- Polythene bags and cartons — ₹91,000 a year
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 4.20 |
| Contingency | 0.21 |
| Total fixed capital | 4.41 |
| Working capital margin | 0.00 |
| Total project cost | 4.41 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.44 | 10.0 |
| Subsidy | 1.10 | 25.0 |
| Term loan from bank | 2.87 | 65.0 |
| Total | 4.41 | 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 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 |
| Insurance | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Total cost of operations | 2.99 | 2.99 | 2.99 | 2.99 | 2.99 | 2.99 | 2.99 |
| Operating profit (EBITDA) | -2.99 | -2.99 | -2.99 | -2.99 | -2.99 | -2.99 | -2.99 |
| Depreciation | 0.66 | 0.56 | 0.48 | 0.41 | 0.35 | 0.29 | 0.25 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.31 | 0.27 | 0.22 | 0.17 | 0.12 | 0.07 | 0.03 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.96 | -3.82 | -3.69 | -3.57 | -3.46 | -3.36 | -3.27 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.96 | -3.82 | -3.69 | -3.57 | -3.46 | -3.36 | -3.27 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.96 | -3.82 | -3.69 | -3.57 | -3.46 | -3.36 | -3.27 |
| Depreciation | 0.66 | 0.56 | 0.48 | 0.41 | 0.35 | 0.29 | 0.25 |
| Cash accruals (PAT + depreciation) | -3.30 | -3.26 | -3.21 | -3.16 | -3.11 | -3.07 | -3.02 |
| Term loan repaid | 0.22 | 0.44 | 0.44 | 0.44 | 0.44 | 0.44 | 0.44 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.52 | -3.70 | -3.65 | -3.60 | -3.55 | -3.51 | -3.46 |
| Cash and bank | -3.52 | -7.22 | -10.87 | -14.48 | -18.03 | -21.54 | -24.99 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 1.54 | 1.54 | 1.54 | 1.54 | 1.54 | 1.54 | 1.54 |
| Reserves and surplus | -3.96 | -7.78 | -11.47 | -15.04 | -18.50 | -21.86 | -25.12 |
| Term loan outstanding | 2.65 | 2.21 | 1.76 | 1.32 | 0.88 | 0.44 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 0.23 | -4.03 | -8.16 | -12.17 | -16.07 | -19.87 | -23.58 |
| Net fixed assets | 3.75 | 3.19 | 2.71 | 2.30 | 1.96 | 1.66 | 1.41 |
| 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 | -3.52 | -7.22 | -10.87 | -14.48 | -18.03 | -21.54 | -24.99 |
| Total assets | 0.23 | -4.03 | -8.16 | -12.17 | -16.07 | -19.87 | -23.58 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -5.63 | -4.21 | -4.52 | -4.88 | -5.30 | -5.80 | -6.40 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -5.25 |
|---|---|
| Lowest DSCR | -6.40 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.66 | 0.56 | 0.48 | 0.41 | 0.35 | 0.29 | 0.25 |
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 | 2.87 | 0.31 | 0.22 | 2.65 |
| 2 | 2.65 | 0.27 | 0.44 | 2.21 |
| 3 | 2.21 | 0.22 | 0.44 | 1.76 |
| 4 | 1.76 | 0.17 | 0.44 | 1.32 |
| 5 | 1.32 | 0.12 | 0.44 | 0.88 |
| 6 | 0.88 | 0.07 | 0.44 | 0.44 |
| 7 | 0.44 | 0.03 | 0.44 | 0.00 |
17 Licences and registrations
- Udyam registration and GST
- State Pollution Control Board consent (ammonia and chemicals)
- Check whether the Toys (Quality Control) Order applies to balloons; if it does, BIS certification is needed
- Trade licence from the local body
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)
- Stand-Up India
19 Sources
- PMEGP sample project report — Rubber Balloons (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Rubber_Balloons_%28_Samadhan_Projects_%29.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.