Detailed Project Report
Shazar Stone Jewellery Making
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹8.44 L
- Term loan from bank
- ₹5.49 L
- Promoter’s contribution
- ₹0.84 L
- Subsidy
- ₹2.11 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-4.43 L
- Average DSCR
- -2.83
- 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
Cut, shape and polish Shazar stone (dendrite agate) and set it into pendants, earrings and rings.
| Main product or service | Shazar Stone Jewellery Making |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Visitors at craft fairs and exhibitions
- Jewellery and handicraft shops
- Exporters and overseas buyers
- Government fairs and exhibitions (the report names Mumbai, Delhi, Agra, Khajuraho and Surajkund)
- Direct orders from buyers
- Sale through exporters
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Stone cutting machine | 1 | 0 | 0 |
| Shaper | 1 | 0 | 0 |
| Grinder (iron or silicon carbide grindstone) | 1 | 0 | 0 |
| Jewellery lapping machine | 1 | 0 | 0 |
| All machinery and equipment together (excluding GST and installation) | 1 | 8,04,000 | 8,04,000 |
| Total | 8,04,000 |
Pre-filled from: UP MSME 1-Connect project profile — Stone Jewellery (Shazar stone). Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Shazar stone (dendrite agate) — collected from river banks after the rainy season; only about 5% gives a good pattern
- Thin spring steel wire — used on a wooden bow to slice the stone
- Silicon carbide or alumina powder — mixed with water as the cutting abrasive
- Polishing oxides (red oxide, cerium oxide, tin oxide, chromium oxide)
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 8.04 |
| Contingency | 0.40 |
| Total fixed capital | 8.44 |
| Working capital margin | 0.00 |
| Total project cost | 8.44 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.84 | 10.0 |
| Subsidy | 2.11 | 25.0 |
| Term loan from bank | 5.49 | 65.0 |
| Total | 8.44 | 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 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 |
| Insurance | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 |
| Total cost of operations | 3.09 | 3.09 | 3.09 | 3.09 | 3.09 | 3.09 | 3.09 |
| Operating profit (EBITDA) | -3.09 | -3.09 | -3.09 | -3.09 | -3.09 | -3.09 | -3.09 |
| Depreciation | 1.27 | 1.08 | 0.91 | 0.78 | 0.66 | 0.56 | 0.48 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.59 | 0.51 | 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 | -4.95 | -4.68 | -4.43 | -4.20 | -3.99 | -3.80 | -3.62 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -4.95 | -4.68 | -4.43 | -4.20 | -3.99 | -3.80 | -3.62 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -4.95 | -4.68 | -4.43 | -4.20 | -3.99 | -3.80 | -3.62 |
| Depreciation | 1.27 | 1.08 | 0.91 | 0.78 | 0.66 | 0.56 | 0.48 |
| Cash accruals (PAT + depreciation) | -3.68 | -3.61 | -3.51 | -3.42 | -3.33 | -3.23 | -3.14 |
| Term loan repaid | 0.42 | 0.84 | 0.84 | 0.84 | 0.84 | 0.84 | 0.84 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -4.11 | -4.45 | -4.36 | -4.26 | -4.17 | -4.08 | -3.99 |
| Cash and bank | -4.11 | -8.56 | -12.91 | -17.18 | -21.35 | -25.43 | -29.41 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 2.95 | 2.95 | 2.95 | 2.95 | 2.95 | 2.95 | 2.95 |
| Reserves and surplus | -4.95 | -9.63 | -14.06 | -18.26 | -22.25 | -26.04 | -29.66 |
| Term loan outstanding | 5.07 | 4.22 | 3.38 | 2.53 | 1.69 | 0.84 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 3.07 | -2.46 | -7.73 | -12.77 | -17.60 | -22.24 | -26.71 |
| Net fixed assets | 7.18 | 6.10 | 5.18 | 4.41 | 3.75 | 3.18 | 2.71 |
| 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 | -4.11 | -8.56 | -12.91 | -17.18 | -21.35 | -25.43 | -29.41 |
| Total assets | 3.07 | -2.46 | -7.73 | -12.77 | -17.60 | -22.24 | -26.71 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -3.04 | -2.27 | -2.44 | -2.63 | -2.86 | -3.13 | -3.46 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -2.83 |
|---|---|
| Lowest DSCR | -3.46 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 1.27 | 1.08 | 0.91 | 0.78 | 0.66 | 0.56 | 0.48 |
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 | 5.49 | 0.59 | 0.42 | 5.07 |
| 2 | 5.07 | 0.51 | 0.84 | 4.22 |
| 3 | 4.22 | 0.42 | 0.84 | 3.38 |
| 4 | 3.38 | 0.33 | 0.84 | 2.53 |
| 5 | 2.53 | 0.24 | 0.84 | 1.69 |
| 6 | 1.69 | 0.14 | 0.84 | 0.84 |
| 7 | 0.84 | 0.05 | 0.84 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Trade licence from the local body
- Artisan card from the handicrafts office, if you sell at government fairs
- Importer-Exporter Code if you export directly
18 Government schemes that may apply
- Prime Minister's Employment Generation Programme (PMEGP)
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
19 Sources
- UP MSME 1-Connect project profile — Stone Jewellery (Shazar stone) — https://msme1connect.up.gov.in/Projectreport/Project%20Report638652312049131858.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.