Detailed Project Report
Wood Carving Unit (Photo Frames)
—
Prepared on: 13 November 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹21.11 L
- Term loan from bank
- ₹13.72 L
- Promoter’s contribution
- ₹2.11 L
- Subsidy
- ₹5.28 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-6.75 L
- Average DSCR
- -1.25
- 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
Treat, season, cut and carve wood into decorative photo frames.
| Main product or service | Wood Carving Unit (Photo Frames) |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Households buying decor and gifts
- Photo studios and gift shops
- Handicraft exporters
- Gift and home-decor shops
- Handicraft fairs and exhibitions
- Online marketplaces
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Wood chemical treatment plant | 1 | 3,50,000 | 3,50,000 |
| Seasoning machine | 1 | 3,00,000 | 3,00,000 |
| Planer machine | 1 | 5,50,000 | 5,50,000 |
| Joining machine | 1 | 2,00,000 | 2,00,000 |
| Buffing machine | 1 | 50,000 | 50,000 |
| Belt sander machine | 1 | 1,50,000 | 1,50,000 |
| Wood lathe machine | 1 | 2,00,000 | 2,00,000 |
| Band saw machine | 1 | 2,00,000 | 2,00,000 |
| Other tools: chip-carving knives, palm tools, chain saw, drill press (× 1 lot) | 1 | 10,000 | 10,000 |
| Total | 20,10,000 |
Pre-filled from: PMEGP sample project report — Wood Carving (prepared by Udyami/Samadhan); World Customs Organization – HS Nomenclature 2022, Chapter 44. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- Natural wood — ₹8 per kg
- MDF board — ₹30 per sq ft
- Paint — ₹200 per kg
- Thinner — ₹70 per kg
- Sealer — ₹150 per kg
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 20.10 |
| Contingency | 1.01 |
| Total fixed capital | 21.11 |
| Working capital margin | 0.00 |
| Total project cost | 21.11 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 2.11 | 10.0 |
| Subsidy | 5.28 | 25.0 |
| Term loan from bank | 13.72 | 65.0 |
| Total | 21.11 | 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 | 0.42 | 0.42 | 0.42 | 0.42 | 0.42 | 0.42 | 0.42 |
| Insurance | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 |
| Total cost of operations | 3.41 | 3.41 | 3.41 | 3.41 | 3.41 | 3.41 | 3.41 |
| Operating profit (EBITDA) | -3.41 | -3.41 | -3.41 | -3.41 | -3.41 | -3.41 | -3.41 |
| Depreciation | 3.17 | 2.69 | 2.29 | 1.94 | 1.65 | 1.40 | 1.19 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 1.48 | 1.29 | 1.05 | 0.82 | 0.59 | 0.36 | 0.13 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -8.06 | -7.39 | -6.75 | -6.17 | -5.65 | -5.17 | -4.73 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -8.06 | -7.39 | -6.75 | -6.17 | -5.65 | -5.17 | -4.73 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -8.06 | -7.39 | -6.75 | -6.17 | -5.65 | -5.17 | -4.73 |
| Depreciation | 3.17 | 2.69 | 2.29 | 1.94 | 1.65 | 1.40 | 1.19 |
| Cash accruals (PAT + depreciation) | -4.89 | -4.69 | -4.46 | -4.23 | -4.00 | -3.77 | -3.53 |
| Term loan repaid | 1.06 | 2.11 | 2.11 | 2.11 | 2.11 | 2.11 | 2.11 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -5.95 | -6.80 | -6.57 | -6.34 | -6.11 | -5.88 | -5.64 |
| Cash and bank | -5.95 | -12.75 | -19.32 | -25.67 | -31.77 | -37.65 | -43.29 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 7.39 | 7.39 | 7.39 | 7.39 | 7.39 | 7.39 | 7.39 |
| Reserves and surplus | -8.06 | -15.44 | -22.19 | -28.37 | -34.02 | -39.19 | -43.91 |
| Term loan outstanding | 12.66 | 10.55 | 8.44 | 6.33 | 4.22 | 2.11 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | 11.99 | 2.50 | -6.36 | -14.65 | -22.41 | -29.69 | -36.53 |
| Net fixed assets | 17.94 | 15.25 | 12.96 | 11.02 | 9.36 | 7.96 | 6.77 |
| 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 | -5.95 | -12.75 | -19.32 | -25.67 | -31.77 | -37.65 | -43.29 |
| Total assets | 11.99 | 2.50 | -6.36 | -14.65 | -22.41 | -29.69 | -36.53 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -1.34 | -1.00 | -1.08 | -1.16 | -1.26 | -1.38 | -1.52 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -1.25 |
|---|---|
| Lowest DSCR | -1.52 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 3.17 | 2.69 | 2.29 | 1.94 | 1.65 | 1.40 | 1.19 |
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 | 13.72 | 1.48 | 1.06 | 12.66 |
| 2 | 12.66 | 1.29 | 2.11 | 10.55 |
| 3 | 10.55 | 1.05 | 2.11 | 8.44 |
| 4 | 8.44 | 0.82 | 2.11 | 6.33 |
| 5 | 6.33 | 0.59 | 2.11 | 4.22 |
| 6 | 4.22 | 0.36 | 2.11 | 2.11 |
| 7 | 2.11 | 0.13 | 2.11 | 0.00 |
17 Licences and registrations
- Udyam registration
- GST registration
- Buy timber only from licensed depots with a transit pass where state forest rules require it
- Artisan identity card (Pehchan) from the Development Commissioner (Handicrafts) — useful for craft schemes and fairs
- Trademark for your brand name (optional)
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 — Wood Carving (prepared by Udyami/Samadhan) — https://pmegp.msme.gov.in/Home/DownloadDocument?fileName=Documents/ProjectSampleReport/Wood_Carving_%28_Samadhan_Projects_%29.pdf
- World Customs Organization – HS Nomenclature 2022, Chapter 44 — https://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/instruments-and-tools/hs-nomenclature-2022/2022/0944_2022e.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.